Property Address: Port Talbot, SA13

Property Description

Investing in a property in Port Talbot, particularly a spacious 4-bedroom home near Margam Park, offers several compelling advantages:

Spacious Layout: The property features four generously sized bedrooms, making it ideal for families or those seeking extra space. The decent room sizes enhance comfort and liability, appealing to a broader market.
Location Benefits: Being close to Margam Park adds significant appeal, providing access to recreational activities, green spaces, and family-friendly attractions. This environment enhances the quality of life for residents.
Affordable Entry Point: Securing the house significantly below market value provides an advantageous entry point. This means you can invest less upfront, reducing financial risk while maximising potential returns.
Value-Adding Renovation: The need for full renovation allows you to modernise the property according to current trends and standards. This not only improves the living experience but also substantially increases the home’s market value, enhancing potential profit margins during resale.
Off-Street Parking: The availability of off-street parking is a significant asset, especially in family-oriented neighbourhoods. It adds convenience and security, making the property more attractive to prospective buyers or renters.
Strong Family Appeal: Port Talbot is well-suited for families, with access to local schools, parks, and community facilities. The area's family-friendly reputation can attract long-term tenants or buyers, ensuring steady demand.
Comparable Sales: Researching comparable properties in the area shows that renovated homes are selling for higher prices. This evidence can justify your investment and help predict a profitable exit strategy after renovation.
Growing Community: Port Talbot is undergoing various development initiatives aimed at boosting the local economy. Such developments can enhance property values, making it an opportune time to invest.
Overall, this property presents a promising investment opportunity, combining a desirable location, spacious layout, potential for value increase through renovation, and strong market demand for family living.

Number of Bedrooms (current): 4

Is there potential to add a bedroom?: No

Reception Rooms: 2

Bathrooms/shower-rooms: 1

Property Asking Price: £109000

Agreed Sale Price: £90,000

Fair Market Value (DUV): £185,000

Comparable 1: Sold STC £180,000: https://www.rightmove.co.uk/properties/156334031#/?channel=RES_BUY

Comparable 2: Sold STC £185,000: https://www.rightmove.co.uk/properties/152348921#/?channel=RES_BUY

Comparable 3: 3 Bedroom sold £185,000: https://www.rightmove.co.uk/house-prices/details/england-137232299-21779581?s=1084f7a5eed95137a2da50b451c765917562f0c60b65ebc18f1304df43e7ea8b#/

Comparable 4 - 3 Bed sold £168,000: https://www.rightmove.co.uk/house-prices/details/england-138454265-19745008?s=f34483ee3a60edcc73dbcd60fbc593edbad9e36ce54bb603a9617c66ebf80d58#/

Comparable 5 - 3 Bed Sold £163,000: https://www.rightmove.co.uk/house-prices/details/england-152654093-93908754?s=6ad780850ba38c875f5e869d06aa658364bb9ba270266505a4b943a16805e326#/

Comparable 6 - 4 Bed needing renovation Sold £159,000: https://www.rightmove.co.uk/house-prices/details/england-127228337-19086247?s=ef21705cad6d54954f7eead0f2ff056db19ff9b28bfd70c857ccf5e1a91bd62f#/

Comparable 7 - 3 Bedroom sold £220,000: https://www.rightmove.co.uk/house-prices/details/england-128617316-93908739?s=fc53d0f01800e0756edcd40884cd679e2048c79576ed4204c2150b8b85807df1#/

Comparable 8 - 3 Bed Sold £215,000: https://www.rightmove.co.uk/house-prices/details/england-132208886-18871264?s=9e5280e427fc4653ad7ce31c0fc4cb6d095f2fc5296f6901dc0f8f58bda77e41#/

Market Status: on the market

Why is the property being sold?: Distressed Seller

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)

Exit Strategy 2: BTL

Exit Strategy 3: Capital Growth

Potential Target Demographic: Families

Refurbishments Required: Renovation Schedule

1. Demolition and Strip Out
Rip Out Property: Begin by clearing all existing fixtures, fittings, and appliances.
Remove Upstairs Ceiling: Take down the ceiling to prepare for new insulation and layout.
Remove Foam Insulation: Carefully extract the foam insulation that was previously installed, as it has been found to degrade wooden beams over time.
Reboard and Insulate Loft: Install new boarding and high-quality insulation in the loft for improved energy efficiency.
2. Structural and Layout Changes
Open Plan Kitchen Design: Knock down walls as necessary to create an open-plan kitchen layout. Install a modern island kitchen that enhances functionality and aesthetic appeal.
3. Window and Door Installation
Install New PVC Windows: Replace all windows with energy-efficient PVC options to improve insulation and security.
Install New Doors: Fit new PVC front and back doors to the property, including a stylish composite front door for enhanced curb appeal.
4. Electrical and Plumbing Works
Rewire Property: Upgrade the electrical system to ensure safety and compliance with current standards.
Re-plumb: Update plumbing as required, keeping the existing boiler but adding new radiators and pipework for optimal heating efficiency.
5. Kitchen and Bathroom Installation
New Kitchen: Install the modern island kitchen, complete with updated cabinetry, countertops, and appliances.
New Bathroom: Design and install a contemporary bathroom with all new fixtures, fittings, and finishes.
6. Interior Finishes
Full New Plaster: Re-plaster all walls and ceilings to provide a smooth and fresh canvas for painting.
New Woodwork Throughout: Replace or refurbish all interior woodwork, including skirting boards and door frames.
7. Electrical Finishes
Second Fix Electrics: Complete the electrical work by installing modern spotlights and outlets in appropriate locations.
Create Modern Feature Cladded Walls: Add stylish cladding to select walls as a design feature that enhances the interior aesthetics.
8. Exterior Works
Paint Front of House: Freshen up the exterior with a new coat of paint to boost curb appeal.
New Gate Installation: Install a new gate for added security and accessibility.
Relaying Driveway: Carefully re-lay the driveway to ensure a smooth and attractive surface for off-road parking.

Summary
This renovation schedule outlines a comprehensive plan that focuses on improving the property’s structure, aesthetics, and functionality. Each step is designed to increase the property's value and appeal, making it a desirable home for potential buyers or renters.

Estimated Refurbishment Costs: £50,000. Tiger Burrows can offer full hands off project renovation management for 10% of the build costs.

Flip Figures

Purchase Price: £90,000

Refurb Costs: £55,000

Entry Legal Costs: £1600

Exit Legal Costs: £1000

Stamp Duty: £4500

Survey Costs: £450

Broker Fee:

Tiger Burrows Consultation Fee: £3497

Estimated 6 months bills costs: £750

Estate Agent Selling Fees: £2500

Total Costs for investor: £159,297 if cash, estimated £165,000 utilising lending.

Re-sale price (DUV): £185,000

Estimated Flip Profit: £25,703

BTL Figures

Purchase Price: £90,000

Refurb Costs: £55,000

Legal Costs: £1600

Stamp Duty: £4500

Survey: £450

Broker Fee:

Tiger Burrows Consultation Fee's: £3497

Estimated Rental Income: £1050

New Mortgage: £578

Stress Test Mortgage: £

Estate Agent Rates: £105

MOE: £105

Cash Flow Most Likely: £261.88

Cash Flow Stress Test: £146,25

Area Description: