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Plymouth - £865 Monthly Cashflow - £30,050 Equity - 25% Discount

Plymouth - £865 Monthly Cashflow - £30,050 Equity - 25% Discount

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Published by Mark I'Anson
Plymouth - £865 Monthly Cashflow - £30,050 Equity - 25% Discount
Plymouth - £865 Monthly Cashflow - £30,050 Equity - 25% Discount

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Published by: Mark I'Anson on Dec 09, 2011
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05/13/2014

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Rare Opportunity – Victorian Terrace 5 Minutes Walk to Plymouth City Centre Prime Location Purchase Price £89,950

Market Valuation £120,000 Superb Value for City Centre Location

25% Instant Equity - £30,050 Gross Cash Flow - £1125 per month

A Great Property Deal
It’s very rare that you have the opportunity to buy a property at this value so close to the city centre, let alone at a discounted rate 25% from A1 value.

You now have the chance to buy this property at 25% Below Market Value We have agreed to buy this great little property in Plymouth for £89,950. That’s a fantastic 25% below realistic estate agent A1 valuation of £120,000. This means you have a built in equity of £30,050. Superb value for a city property This presents an ideal investment opportunity for you. It is in a desirable location with strong rental demand and has built in capital equity of £30,050. The heart of Plymouth is only 5 minutes walk away. This property will be snapped up for rental by professionals working in the city or as a three bedroom multi-let. We managed to reserve this property before it went on the open market and offer it to our investor group. This puts you in the front of the queue! This property would easily rent out on a single let AST for between £650 and £700 per calendar month. Alternatively, we would recommend renting it on a room by room basis, where you would typically achieve £375 per double room. This house has 3 double rooms and would therefore accumulate £1125 per calendar month.

Rental Details
Type of rental Monthly Income (pcm) Single AST £660 3Room Multi-let* £1125 Gross Yield 8.8% 15% *Gross Monthly Profit £400 £895

*Gross profit based on a 4.6% interest rate on 75% loan to value giving a monthly interest of £260 *Multi-let - work on a basis of £67 per person, per month for bills.

Property Condition
The property sits in the middle of a Victorian terrace row in a cul-de-sac tucked away from the main thoroughfare. The added benefit of this street is permit parking for residents, a real commodity in the city! The road is surprisingly quiet. The house has recently been fitted with new quality PVC windows and doors with full double glazing. There is a new gas boiler with central heating radiators. The front of the house has been rerendered and a new slate roof put on the tenement. All great features for a low maintenance rental. On entering the house there is a large hall leading to 2 reception rooms (we recommend the use of the front reception as an extra bedroom for rental), the kitchen in the rear tenement and a door to the rear yard. The yard is surrounded by a 2 metre brick wall with ample room for drying clothes. There is cold water tap in the yard and a gate leading to the back lane. Interestingly, incorporated within the rear tenement is a coal store. This could be converted to a utility room attached to the kitchen. We recommend internal refurbishment to the property consisting of replacement kitchen, bathroom, new carpets and decoration. In addition, some rendering and plastering will also be necessary. To make it easier for you as an investor, we can arrange for our trusted full time refurb team to provide a fixed quote for the refurbishment. They would carry out the work extremely quickly once the investment property has been secured. This would deliver an efficient turn around to rental and secure investment returns. Should you require, Kingleigh Properties would also manage the letting of the property at a 12% fee.

Local Area map

The property is situated West of Armada way and North of Union Street. These are two main thorough fares to the heart of Plymouth City. Drake Circus Shopping Centre is an easy walk and the University of Plymouth is on the door step. The Theatre Royal and the Barbican night life are easily accessed from this property. In the other direction and also walking distance are the open spaces of Victoria Park and Central park with its sporting facilities. Plymouth Argyle Football Club is only a short bus ride away. It can be clearly seen that this property sits central to the growing life of Plymouth and therefore is a sturdy investment with strong rental potential.

Market Value
We have identified strong solds in the surrounding streets, which can be seen in the comparable section. Advice from local estate agents indicates that the valuation appears in line with our market value expectations.

Mouse Price valuation
 £121,000

Estate Agent A1 Market Value
    Shobrooks – Anthea (01752 663341) £120,000- £125,000 Connells - Heleney (01752 674467) £125,000 Fullafords – Claire (01752 648121) £120,000 - £125,000 Stratton Creber – Sian (01752648129) £125,000 - £130,000

Comparables

X

Frederick Street East runs parallel to Neswick Street.

*

* Compared to 20, Frederick Street East, 64, Neswick Street is a smaller 2 bedroom terrace. In
2010 it required renovation and sold for £77,500. In 2011, 8 months later, it sold for a more substantial £117,000. All other comparables are 3 bedroom terraces. 20, Frederick Street East is a larger 3 bedroom property and has a higher value which should be considered when looking at the average sold prices in the area. . Average sold price including 64, Neswick - £122,300 Average sold price without 64, Neswick - £133,500

Average Price of Properties sold in Plymouth PL1

Deal Structure
Step 1 Reservation
Reservation Fee Sourcing Fee Total Fee £1000 £3500 £4500

Step 2 Exchange & Completion
Usual Legal Fee Stamp Duty Deposit required 25% of £89,950) Total Cash Outlay to Purchase £500 Exempt £22,500 £27,500

Equity
Discounted Price A1 Market Value Instant Equity £89,950 £120,000 £30,050

Future Forecasts (3% conservative increases) Equity in 5 Years £34,836 Equity in 10 Years £40,384

Cash Flow
Monthly Interest Monthly Rent Monthly Cash Flow £260 £1125 £865

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