This deal just turned into £75,000 profit!
This deal just turned into £75,000 profit!
This property represents an excellent investment opportunity with:
The purchase price was £200,000 - Now £185,000
Renovation budget of £80,000
Targeting an end sale value of £365,000
With a potential profit of £75,000
This project promises significant returns for savvy investors. Reserve this deal here for £299. This is fully refundable should you decide to pull out of the deal post-survey and legal searches.
We are now in possession of a survey completed on the property. The survey highlights our suspicions that the property has a legacy settlement but no structural failure. However, since acquiring this survey, we have successfully renegotiated a further discount on the deal! We have a healthy renovation budget to transform this property and generate a substantial profit.
The cracks identified are merely fractures due to historic settlement. This house will be fully mortgageable after implementing the new wall tie solution and completing a small amount of stitching. The required works are well within the capabilities of our contractors, who provide guarantees to ensure the mortgageability of the property.
Investment Property Description
We have been monitoring this property for over a year and are excited to present a unique investment opportunity. The owners have recently reduced the price significantly, making it an attractive option for savvy investors. Although potential buyers have been deterred by visible cracks, we view this as an opportunity rather than a setback. As experienced property investors, we understand that the ability to purchase a property with issues and effectively address them can lead to substantial profits.
The cracks are not severe or alarming; however, we have accounted for a comprehensive renovation budget to address any necessary foundation stabilisation that might be required. A quick structural survey, priced at £475, will provide us with precise insights into the condition, ensuring that our renovation budget will adequately cover any recommended solutions.
Upon entering the property, you'll find a spacious hallway that leads to the first floor and opens into two inviting reception rooms. The living room is bright and generously sized, featuring a charming bay window and a fireplace, perfect for creating a warm atmosphere. The dining room offers a lovely view of the rear garden and provides access to the kitchen, which also connects to the outdoor space.
Upstairs, the property boasts two double bedrooms, offering ample space and comfort. The third bedroom is a large single room, ideal for various uses, whether as a guest room or a home office. The bathroom is a good size and features a wonderful view over Swansea Bay, adding a touch of luxury to daily routines. The main bedroom, with its own bay window, overlooks the bay and provides a side view down to Mumbles, creating a serene environment.
The manageable rear garden is mainly laid to lawn, providing a pleasant outdoor space for relaxation and leisure.
Located in Sketty, Swansea, this property is within walking distance of Swansea University, Gower College, Singleton Hospital, Swansea Botanical Gardens, and Singleton Park, making it an appealing option for families and professionals alike. Additionally, it is only a 10-minute drive to Swansea City Centre, ensuring easy access to a wide range of amenities and services.
This property represents a promising opportunity for those looking to invest in a desirable location with great potential for appreciation and value addition. Don’t miss out on this chance to capitalise on a property that can be transformed into a highly sought-after home!
Number of Bedrooms (current): 3
Is there potential to add a bedroom?: No
Reception Rooms: 2
Bathrooms/shower rooms: 1
Property Asking Price: £220,000
Agreed Sale Price: Figures calculated at £185,000
Fair Market Value (DUV): £365,000
Market Status: on the market
Is the property in a lettable condition: No
Is the sale price negotiable?: Yes
Property Type: House
Freehold or Leasehold: Freehold
Is the property part of a portfolio?: No
Exit Strategy 1: Cash Purchase Flip (or bridge)
Exit Strategy 2: Capital appreciation
Potential Target Demographic: Families
Renovation Schedule
Overview: The property requires a full refurbishment, with potential structural works necessary to address the issues identified in the vendor's structural survey. The survey indicates historic settlement cracks but does not rule out the possibility of recent movement. To ensure a comprehensive understanding of the property's condition, we recommend conducting a more thorough structural survey to accurately determine the specific refurbishment requirements.
Recommended Renovation Works:
Structural Assessment:
Our survey dictates the extent of any necessary repairs.
Address any identified structural issues, particularly related to the historic settlement cracks.
Implement wall tie solutions to reinforce the structure.
Perform crack stitching to stabilise and repair any fractures.
Extension:
Design and construct a single-story extension to the rear of the property. This will create an open-plan kitchen/dining area, significantly enhancing the living space and maximising the property's value.
Electrical and Heating:
Rewire the entire property to ensure compliance with current safety standards.
Install a modern central heating system for improved energy efficiency and comfort.
Kitchen and Bathroom:
Install a modern kitchen with contemporary fixtures and fittings.
Renovate the bathroom to include modern amenities and finishes.
Interior Finishes:
Replaster walls and ceilings as needed for a smooth, fresh finish.
Update woodwork and trimming throughout the property to enhance its aesthetic appeal.
Paint and decorate all rooms, selecting a neutral color palette to appeal to potential buyers.
Flooring:
Install new carpets and flooring throughout the property to provide a clean and inviting atmosphere.
Curb Appeal:
Enhance front and back curb appeal by improving landscaping and making any necessary exterior repairs.
Present the garden in a manner that maximises its potential, ensuring it is tidy and welcoming.
Total Renovation Budget:
The overall budget allocated for this refurbishment project is £80,000. This budget will cover all the recommended works outlined above, ensuring that the property is transformed into a modern, attractive home ready for the market.
This renovation schedule aims to not only address the immediate needs of the property but also to enhance its overall value and appeal, making it a worthwhile investment.
*Tiger Burrows Limited can provide full hands-off project management for 10% of the renovation costs. (industry standard is 12%)
Flip Figures
Purchase Price: £185,000
Refurb Costs: £80,000
Entry Legal Costs: £1600
Exit Legal Costs: £1000
Stamp Duty: £8,700
Survey Costs: £900 (Structural Survey £475 and lending valuation survey £425)
Tiger Burrows Consultation Fee: £4997
Estimated 6 months bills costs:£750
Estate Agent Selling Fees: £5694
Total Costs for investor: £288,641 if all cash - £134,641 estimated if used for lending
Re-sale price (DUV): £365,000
Estimated Flip Profit: £75,359
