Flip this run down Bungalow for £87,000 profit!
Flip this run down Bungalow for £87,000 profit!
Overview
This 4-bedroom detached bungalow on Augustan Drive in the sought-after village of Caerleon, Newport, presents a lucrative investment opportunity. Priced at £160,000, this property requires extensive renovation, making it an ideal project for investors seeking a substantial return. Once refurbished, it has a projected resale value of £350,000, offering a £87,000 profit after a total renovation cost of £80,000 and other expenses.
Figures in Brief:
Purchase Price: £160,000
Renovation Costs: £80,000 (very conservative to provide a stunning end product)
End sale price: £350,000
After all costs profit: £87,000
Reserve this deal here for £299. This is refundable if you decide not to go ahead after due diligence.
Please note: This property is not mortgageable in its current condition and requires a cash or bridge purchase.
About the Area: Caerleon
Nestled along the banks of the River Usk, Caerleon is a historic and picturesque village renowned for its Roman heritage and charming community atmosphere. Its blend of history, culture, and modern amenities makes it a magnet for retirees, families, and professionals alike.
A Desirable Retirement Spot: Known for its peaceful environment, Caerleon offers an excellent quality of life. The village boasts easy access to scenic walking routes, historic sites, and a strong sense of community—qualities that make it a favourite among retirees looking to settle in a serene yet well-connected location.
Connectivity and Amenities: With convenient transport links to Newport, Cardiff, and Bristol, Caerleon is ideally situated for those seeking a tranquil lifestyle without sacrificing access to city conveniences.
Why Bungalows Command a Premium
Detached bungalows, especially those in desirable areas like Caerleon, are in consistently high demand due to their versatility. Their single-story design appeals to a wide demographic, including retirees, young families, and those with mobility needs. With limited new developments focusing on bungalows, properties like 17 Augustan Drive are increasingly rare, commanding a premium price in the local market.
Property Details
The property comprises:
Interior:
Hallway
Lounge
Kitchen
Bathroom
Four bedrooms
Exterior:
Front garden and a driveway leading to a garage
Generously sized rear garden with stunning views
The Renovation Opportunity
This property is in need of substantial modernisation, presenting a blank canvas for transformation into a modern, stylish, and energy-efficient home. The renovation could include:
Reconfiguring the layout to create a spacious, open-plan living area
Installing a contemporary kitchen and bathroom
Updating wiring, plumbing, and insulation to meet current standards
Landscaping the rear garden to enhance the outdoor space and capitalise on the property’s scenic views
Financials at a Glance
Purchase Price: £160,000
Renovation Costs: £80,000
Projected Sale Price: £350,000
Estimated Profit (After Expenses): £85,000
Why Invest in This Project?
Strong Profit Margins: A potential return of over 50% on investment.
High Demand for Renovated Bungalows: Bungalows in this area, especially with modern upgrades, are highly sought after.
Prime Location: The Caerleon area is a hotspot for retirees and families, ensuring a wide pool of potential buyers.
Hands-Off Renovation Support: With our expert project management services, this property can be transformed with minimal hassle, ready for sale or rental.
Cash or Bridge Purchase Required: The property’s current condition makes it unsuitable for traditional mortgages, requiring a cash or bridging loan for acquisition.
Investors seeking a profitable and rewarding renovation project in one of South Wales’ most desirable locations should act quickly to secure this opportunity.
Number of Bedrooms (current): 4
Is there potential to add a bedroom?: No
Reception Rooms: 1
Bathrooms/shower-rooms: 2
Property Asking Price: £160,000
Agreed Sale Price: £160,000
Fair Market Value (DUV): £350,000
Market Status: on the market
Why is the property being sold?: Unknown
Is the property in a lettable condition: No
Is the sale price negotiable?: No
Property Type: House
Freehold or Leasehold: Freehold
Is the property part of portfolio?: No
Exit Strategy 1: Cash Purchase Flip (or bridge)
Potential Target Demographic: Families and retirees
Flip Figures
Purchase Price: £160,000
Refurb Costs: £80,000
Entry Legal Costs: £1600
Exit Legal Costs: £1000
Stamp Duty: £6,400
Survey Costs: £450
Broker Fee: 0
Tiger Burrows Consultation Fee: £6997
Estimated 6 months bills costs: £750
Estate Agent Selling Fees: £5460
Total Costs for investor: £262,247 (This is pure cash, no lending costs considered, you should consult your broker)
Re-sale price (DUV): £350,000
Estimated Flip Profit: £87,753
Extensive Renovation Schedule for Caerleon
To transform this property into a modern, high-value home ready for resale at £350,000, the following comprehensive renovation works are recommended:
1. Initial Preparation and Site Clearance
Clear all internal and external debris to prepare the property for renovation.
Remove old fixtures, fittings, and any non-structural elements, including outdated kitchen units, bathroom suites, and flooring.
Inspect the property for structural issues, including dampness, subsidence, or cracks, and address if necessary.
Carry out a professional survey to assess wiring, plumbing, and the structural integrity of walls, ceilings, and windows.
2. Electrical and Wiring
Fully rewire the property, including:
Installation of new consumer unit (fuse box) compliant with current regulations.
Upgrading sockets, switches, and lighting fixtures throughout the home.
Adding modern features such as USB sockets and energy-efficient LED lighting.
Installing external lighting and electrical points for the garage and garden.
Testing and certification by a qualified electrician.
3. Plumbing and Heating
Replace or upgrade plumbing throughout the property.
Install a modern, energy-efficient heating system, including:
New combi boiler and radiators with thermostatic controls.
Plumbing for the kitchen and bathrooms, ensuring correct water pressure.
Installing underfloor heating in key areas (optional for added value).
4. Plastering and Wall Repairs
Fully re-plaster all internal walls and ceilings to achieve a smooth finish.
Apply damp-proof treatment where required.
Repair any damaged or cracked plasterboard.
5. Windows and Doors
Replace all windows with modern, energy-efficient double glazing to improve insulation and aesthetics.
Install new external doors to improve security and curb appeal.
Sand and repaint or replace all internal doors and frames, ensuring they match the property’s updated style.
6. Kitchen Installation
Design and install a high-specification kitchen, including:
Modern cabinets and countertops.
Integrated appliances (oven, hob, extractor, fridge-freezer, dishwasher).
Upgraded plumbing for sink and dishwasher.
Durable, easy-to-clean flooring and splash-backs.
7. Bathrooms Installation
Install modern bathroom suites in all bathrooms:
Replace bathtubs, showers, sinks, and toilets with contemporary, high-quality fittings.
Add features such as heated towel rails, LED mirrors, and rainfall shower heads.
Install tiled walls and flooring for durability and aesthetics.
8. Flooring Throughout
Replace all flooring, including:
High-quality laminate or engineered wood in living areas.
Durable vinyl or tiled flooring in kitchens and bathrooms.
Carpet in bedrooms for comfort and warmth.
9. Painting and Decorating
Paint all internal walls, ceilings, and woodwork in neutral, modern tones to appeal to a broad range of buyers.
Apply feature wallpaper or accent walls in key areas for added style.
10. Woodwork and Finishing Touches
Replace or refurbish all skirting boards, architraves, and staircase woodwork (if applicable).
Install new built-in storage or shelving to maximise space.
Fit modern fixtures and fittings, such as door handles, light fittings, and curtain poles.
11. External Works
External Render:
Repair and re-render the external walls for a fresh, modern look.
Garage and Driveway:
Repair and repaint the garage and resurface the driveway.
Garden Clearance and Landscaping:
Clear overgrown plants, debris, and outdated structures.
Re-lay lawns, add low-maintenance flower beds, and install patio or decking areas.
Install fencing or hedges for privacy and security.
12. Final Inspections and Certification
Conduct final inspections for electrical, plumbing, and structural compliance.
Obtain required safety certifications for wiring, gas, and appliances.
This comprehensive renovation schedule ensures the property will meet modern standards and appeal to buyers seeking a turnkey, high-quality home. The completed project will maximise the property’s value and deliver an exceptional return on investment.
Estimated Refurbishment Costs: £80,000