Ideal Buy to let or Flip in Maesteg South Wales (searches already done)
Ideal Buy to let or Flip in Maesteg South Wales (searches already done)
Reserve this investment opportunity for £299
Figures in Brief:
Sale Agreed at: £77,000
Estimated Done Up Value: £130,000
1st exit: Flip Potential Profit: £17,109
2nd exit: Cash Flow (BTL): £195.63
Property Description: This property is in a very sought after street in Maesteg. As soon as you drive down the street you can see that the homeowners take pride in their properties.
The property itself is a traditional Valleys terraced house, with red brick to the front and stone to the back. The house has a gate and small front yard which is nice because it is set back off the road. Once inside it is dated, and elderly lady used to live here. However it is in a good state of repair but it does require a complete renovation to bring this much loved home back into use. The living room is very large and light as it has been opened up. The kitchen and bathroom are at the back of the property in an extension, these are on the smaller side but are functional.
There are 3 good sized bedrooms upstairs (one has a make shift ensuite with a toilet in the middle of the room!), but there is plenty of space. There is space on the landing to put an upstairs toilet.
There is double glazing throughout apart from one internal window. The boiler is situated behind the fridge so the layout would need to change, however it has all new pipework and looks new.
This property has been sold and was due to complete, however because of the buyers financial situation changing they reluctantly pulled out. The searches have been done by a great local solicitor who is very reasonable on price. These can possibly be transferred saving a lot of time. A reputable bridging company are also in place who are happy to lend hand have completed everything their end so it can be a very quick sale (which is needed).
A reputable builder and an architect have also been round and have confirmed the works needed to be carried out and the price.
Property Information:
Property Address: Turberville St, Maesteg. CF34 0LU
Number of Bedrooms (current): 3
Is there potential to add a bedroom?: No
Reception Rooms: 3
Bathrooms/shower-rooms: 1
Agreed Sale Price: £77000
Fair Market Value (DUV): £130000
Comparable 1: 3 bed on the same street, nice condition but needs updating is on the market for £135000 with Peter Morgan
Comparable 2: 4 bed on the same street, needs modernising throughout is on the market for £130000 with Peter Alan
If no comparables, please state why there are no direct comparables: A 3 bedroom house on the same street (no 15) was under offer at £145000 fully renovated, however this is no longer showing. I had a lengthy call with Peter Morgan who know this sold straight away for over £140000 (as they know the buyers), but it was done to an incredible standard.
Most people own their homes here so there aren't a great deal of done up comparables as people tend to stay here.
Peter Alan have given a DUV of £135000, Ferriers £130000 and Peter Morgan £130000.
There aren't any others sold on that street that have been recently renovated (apart from that one that isn't showing).
Market Status: on the market
Why is the property being sold?: Sale identified by sourcer (open market)
Is the property in a lettable condition: Yes
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)
Exit Strategy 2: BTL
Exit Strategy 3: N/A
If HMO strategy please select: N/A
Potential Target Demographic: First-time buyers
Refurbishments Required
Rip out
Re wire
Possible steel beam in the living room
New roof on the kitchen extension
Possibly a new boiler - new pipework and radiators
New Kitchen
New Bathroom
Toilet upstairs if flip
Plastering throughout
Second fix joinery
Painting
Carpets and flooring
Tidy up garden
A reputable builder and an architect have also been round and have confirmed the works needed to be carried out and the price.
Estimated Refurbishment Costs: £25000
Flip Figures (Buy, Renovate, Sell)
Purchase Price: £77,000
Refurb costs: £ 25,000
Entry legal costs: £1000
Exit legal costs: £1000
Stamp Duty: £2310
Survey: £450
Broker Fee: £400
SMP Consultation Fee: £ 2997
Estate Agent selling fees: £1778
RESALE PRICE: £ 130,000
Potential Profit: £17,109
BTL Figures (Buy to let)
Purchase Price: £77,000
Refurb costs: £25,000
Legal costs: £1000
Stamp Duty: £2310
Survey: £ 450
Broker Fee: £400
SMP Consultation Fee: £2997
Rental Income: £600
New Mortgage (3.5%): £284.38
Estate Agent Rate (10%): £60
Management & operating Expenses (10%): £60
CASH FLOW: £195.63
Disclaimer : Perform your own Due Diligence. The ROI above is not a guaranteed return and is an indication of the potential based on achieving the relevant figures in all aspect of the purchase, refurbishment and refinance/resale. All figures will be subject to the buyers status and market fluctuations.
Area Description
Maesteg itself is in Bridgend County Council. There are plans for a multi million pound development of the Town Hall which is situated in the heart of Maesteg to further regenerate the area. It is planned to include a new theatre, a new bar, box office, café, library and a heritage centre.
The town centre itself is bustling and is only 5 minutes away from this property. It has a plethora of shops which include everything you need from a town centre, including a variety of supermarkets.
The local Primary School, Garth Primary scores a 4/5 on the Good Schools Guide and is under half a mile away from the property, making it easy to walk to instead of having to drive. There is also a Catholic school nearby and a number of Welsh Medium schools, so there is a lot of choice for local families.
There is a swimming pool in Maesteg, as well as nature reserves, parks and museums close by so there is plenty to do.
There are multiple train stations in Maesteg and the local bus stop is 0.1 miles away so if the family are relying on public transport then it is convenient. Likewise the motorway is only 15 minutes away so it is easy to commute to the larger towns and cities if needed.
Since Maesteg is in Bridgend, you have the added benefit of having large shopping centres and another bustling town close by. It is also situated close to Neath, so you really are in the heart of the Valleys with easy access to Swansea and Cardiff and the glorious Welsh coastline.
The fine Print
SMP operates in trust with its potential investors. SMP is registered with the Property Ombudsman Group. SMP prides itself on delivering BMV deals with accuracy and confidence. The sourcing fee for this deal is £2997(inc VAT) which is paid on completion of the sale. A £299 deposit is required to secure the deal which is refundable if the investor decides not to proceed to an agreed sale with the vendor, ie after viewing. The deposit is not refundable if the investor pulls out of the purchase after sale agreed.
SMP takes no responsibility if deals “fall through” for matters out of our control. It is always highlighted that property investment carries an element of risk and ultimately a deal may not be successful. There for deal owners are advised to carry out their own due diligence to confirm for themselves the findings SMP present. SMP has no control of the UK property market prices and investments can be lost or profit margins shortened with the fluctuating market