Decent Flip or retain as a Buy to Let in Abertillery

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sold out

Decent Flip or retain as a Buy to Let in Abertillery

399.00

Reserve this investment opportunity for £399

Figures in Brief:
Sale Agreed at: £82,500
Estimated Done Up Value: £140,000
1st exit: Flip Potential Profit: £21,497
2nd exit: Cash Flow (BTL): £ 173.75

Property Description:  This property qualifies for the local council 0% interest loan of up to £25,000 - this is for properties that have been empty for at least 6 months to bring them back into good condition.
Sourcing Agent can provide the information needed to apply for this.

This is a spacious 3 bed end of terrace positioned in a lovely part of Blaina, Abertillery with lovely views over the surrounding hills and valley. The property is set over 3 storeys, the lower ground floor is currently not being used but it has a staircase to reach it from the ground floor. It has been boarded and has an electricity and heating supply. The lower ground floor and the rear of the property has a separate access and private gate round the side of the property.

From the front door, there is a small private enclosed terraced front garden area. Through the front door into the hallway where there is a large storage cupboard. The lounge is on the left. It has a large bay window and fireplace. From the hall into the dining room which has a large window and looks out on to the rear of the property. It has lovely views over the hills. The kitchen is next to this. It is currently a medium sized room with units that are dated but in good working order - could consider keeping this if on a budget and using a buy to let strategy, but kitchen worktop needs replacing (however, I have budgeted for a full kitchen replacement in the refurbishments list).

At the side of the kitchen there is a set of steps that goes down to the lower ground floor level. This area has been partially renovated. It is boarded and has heating and electricity. There is a further area through a door that has not been renovated or dug out to full height but has the potential to be further developed if desired.

The lower ground floor also has two windows and a back door leading to the garden. Through the back door there is a large patio area then some steps that lead down to a garden area (very overgrown). At the bottom of the property there is a large detached garage. Beyond the garage there is an overgrown parking area for a car. The garden overall needs some attention. There is also ample parking at the front of the property on the road.

From the hallway go up the stairs where there are three bedrooms and a bathroom. Two beds at the front with bed 3 and bathroom at the rear.

Add To Cart

Property Information:


Property Address: Alexandra Street, Blaina, Abertillery, NP13 3HF

Number of Bedrooms (current):  3

Is there potential to add a bedroom?: YES - add bed 4 or a granny flat/bedsit

Reception Rooms: 3

Bathrooms/shower-rooms: 1

Property Asking Price: £95,000

Agreed Sale Price: £82,500

Fair Market Value (DUV): £140,000

Comparable 1: https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=69781216&sale=9761677&country=england £143,000

Comparable 2: https://www.zoopla.co.uk/property/104-alexandra-road/six-bells/abertillery/np13-2lh/16703359 £140k (lovely finish)

Comparable 3: https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=75423245&sale=9519433&country=england £145,500

If no comparables, please state why there are no direct comparables: https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=65084200&sale=7524235&country=england £135k 2 storeys
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=62077078&sale=6716659&country=england £135k 2 storeys
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=66677540&sale=5705701&country=england £139,995 2 storeys
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=63369310&sale=7230766&country=england £135k 2 storeys

PART DONE UP:
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=66643498&sale=9000115&country=england £95k
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=60912046&sale=5961202&country=england £99.5k


NOT DONE UP:
https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=13650490&sale=54999776&country=england £88k

FOR SALE:
https://www.rightmove.co.uk/property-for-sale/property-60695829.html £150k (4 beds)
https://www.rightmove.co.uk/property-for-sale/property-71512438.html £149,950 (4 beds)
https://www.rightmove.co.uk/property-for-sale/property-72638059.html £149,950 for sale

 

Market Status: Sale Secured by Sourcing Agent

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: Capital Growth

If HMO strategy please select: N/A

Potential Target Demographic: Families


 Refurbishments Required

Estimated Refurbishment Costs: £22,000

Paint garden wall and garage
Tidy garden (budget £750 as it's large)
Paint part of the outside of house and rain goods (budget £750)
Rip out existing
Full rewire
Skim hallway, stairs and landing
Skim lower ground area
Stairs to lower ground needs a bannister and a bulkhead
Need new bathroom
Need new kitchen
Need x9 new internal doors
Double glazing panel blown in one room
Boiler health check and service
Skim bed 3 and bathroom
Skim kitchen and part of dining room

How to add value to this property:

1. Take down kitchen and dining room wall (stud wall) on ground floor and make large modern kitchen, open plan living space
Make lower ground floor area into large fourth bedroom with ensuite or a family wc.
Add patio doors to connect house to patio/garden area

OR 2. Move kitchen and diner to lower ground floor. Put in patio doors.
Make lounge or dining room into bedroom 4 with ensuite or wc plus study/office/box room/bed 5 and storage area.

OR 3. Make lower ground area into granny flat/studio room with kitchenette and bedroom. Put in stud wall. Add in shower room. Add patio doors. There is a separate access to this part of the house from the side of the property so this could be rented separately if required to generate extra income. Add extra on to the rental income figure.
Upstairs on the ground floor, knock the kitchen and dining room through into one room.

This house is of a good size and presents several different options for renovation!!

SMP Can project manage the build for 10% +VAT of the refurb amount

The local council in this area are offering a 0% loan of up to £25,000 for properties that have been empty for at least 6 months to bring them back into a liveable condition.
Sourcing Agent can provide the information needed to apply for this.


 

Flip Figures (Buy, Renovate, Sell)

Purchase Price: £82,500
Refurb costs: £ 22,000
Entry legal costs: £1200
Exit legal costs: £1000
Stamp Duty: £2475

Survey: £450
Broker Fee: £400

SMP Consultation Fee: £ 3997

Estate Agent selling fees: £1915

RESALE PRICE: £ 140,000

Potential Profit: £21,497

BTL Figures (Buy to let)

Purchase Price: £82,500
Refurb costs: £22,000
Legal costs: £1200
Stamp Duty: £2475

Survey: £ 450
Broker Fee: £400
SMP Consultation Fee: £3997
Rental Income: £600
New Mortgage (3.5%): £306.25

Estate Agent Rate (10%): £60
Management & operating Expenses (10%): £60

CASH FLOW: £173.75

Money left in deal £10,604

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: 

This part of the South Wales valleys forms part of a thriving community, nestled in the hills inbetween the Heads of The Valleys Road, which offers excellent links to Abergavenny and the South, the A4042 corridor, Newport and the M4 corridor to rest of Wales and Bristol. The area has excellent schools, facilities and infrastructure.

The Abertillery area has had much investment in recent years in the town centre, car parks, shops, theatre and roads infrastructure.

Ebbw Vale is most famous for its old Steel Works site, which is currently being regenerated and the old site will soon hold the new hospital, and railway station direct to Cardiff, bringing valuable links to the area. It is a popular town for young families as it offers a fantastic sense of community spirit, opportunities and new development, especially since the recent announcement to turn the festival park into a major leisure and tourist destination.
Here’s the link: https://www.southwalesargus.co.uk/news/17544786.masterplan-revealed-for-plans-to-turn-ebbw-vales-festival-park-into-a-major-leisure-and-tourist-destination/

Nearby Cwmbran is where the new super hospital is currently being built and opens in spring 2021. The super hospital will create 600 new jobs when it is open so there will be high demand for housing in the area and house prices will inevitably increase in the next 2 years.

It’s currently an investor’s market in this area, so a great chance to grab distressed property and add value whilst the prices are at this level.
Here’s a link to the latest update.
https://www.walesonline.co.uk/news/health/grange-university-hospital-cwmbran-details-16029785

Links/Infrastructure:
One of the other main strengths of this area is high rental demand due to its proximity to Newport. It’s easy to commute – just 15 miles, 30 minutes in the car.
Same distance and time to get you on to the M4 where it’s easy to travel to Cardiff, Swansea and in the other direction Bristol.
Newport is a thriving city with good employment levels, refurbished city centre and thriving night life.
From Abertillery you can commute via M4 to Bristol and the surrounding industrial areas in 60 minutes.
In the opposite direction the heads of the valleys road infrastructure is being made into dual carriage way all the way to Merthyr Tydfil.
The A465 dual carriageway between Gilwern and Brynmawr is scheduled for completion in 2019. The latest phase of the Heads of the Valleys road infrastructure project is costing around £220m.
So far Section 1 between Abergavenny and Gilwern, Section 3 between Brynmawr and Tredegar, and section 4 between Tredegar and Dowlais Sections 5 and 6 are scheduled to be completed in 2020.
Much of it is already done but it's not yet complete.
Here's a link to the works going on: https://www.walesonline.co.uk/business/business-news/how-key-section-heads-valleys-11765260

Train/Bus:
Nearest rail link is Llanhilleth – 11 mins in car. It has train links that get you direct to Cardiff central in less than 1 hour.
Good bus links in the area to all nearby towns.
Entertainment/Leisure:
Good selection of local bars, restaurants and a cinema.
Nearby Ebbw Vale sports centre has some great facilities including restaurants, bars, shops, gym, leisure centre and swimming pool. Nearby in Abertillery there is kick boxing, yoga, gymnastics and an athletics club. Also a rugby club , bowls and golf club.

Abertillery is fast becoming known as a hot spot for Foodies in the Blaenau Gwent region:
The Guardian Café at Six Bells was voted as second best place to eat in Blaenau Gwent by Trip Advisor in 2019. Best known for its tremendous Sunday roast and homemade cakes!
Berry’s Bar and Grill was voted third best place to eat in Blaenau Gwent by Trip Advisor in 2019, best known for its Yorkshire pudding towers!

There are a number of shops, restaurants and bars in Abertillery. There is a large Tesco, Co-Op, Trinant Shopping centre, public parks, and Cinema within a few miles. There is also the Metropole theatre and another theatre in nearby Beaufort.

Hotels:
Accommodation Premier Inn 3 star at Ebbw Vale

SCHOOLS within the area:
• NEW SCHOOL campus has been built at Six Bells at a cost of £7 million pounds
• SoFrydd Primary School
• Trinant Primary School
• Eden Education Centre
• St Illfyd’s
• Tillery Street Campus (fantastic new facility which offers all levels of school to 18)

Key Journey Times:
Newport 15 miles, 30 minutes in the car.
Same distance and time to get you on to the M4 where it’s easy to travel to Cardiff, Swansea and the rest of Wales
Superhospital in Cwmbran, 15 miles, 30 mins in car
From Abertillery you can commute via M4 to Bristol and the surrounding industrial areas in 60 minutes.
Ebbw Vale 15 minutes
Merthyr 30 minutes

Nearest Train Station: Ebbw Vale Town Station 5.6 miles (14 mins), Llanhilleth 6.1 miles (11 mins in car), Ebbw Vale Parkway 8.9 miles (14 mins in car),

Any key journey times: Key Journey Times:
Newport 15 miles, 30 minutes in the car.
Same distance and time to get you on to the M4 where it’s easy to travel to Cardiff, Swansea and the rest of Wales
Superhospital in Cwmbran, 15 miles, 30 mins in car
From Abertillery you can commute via M4 to Bristol and the surrounding industrial areas in 60 minutes.
Ebbw Vale 15 minutes
Merthyr 30 minutes

 


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 £3997(inc VAT) which is paid on completion of the sale. A £399 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