High Return on Capital Employed ROCE using Council funds for renovation in Abertilery (24% BMV) Money out under 2 years (smp006)

thumbnail_IMG_5039.jpg
thumbnail_IMG_5040.jpg
thumbnail_IMG_5041.jpg
thumbnail_IMG_5042.jpg
thumbnail_IMG_5043.jpg
thumbnail_IMG_5044.jpg
thumbnail_IMG_5044a.jpg
thumbnail_IMG_5044b.jpg
thumbnail_IMG_5045.jpg
thumbnail_IMG_5046.jpg
thumbnail_IMG_5048.jpg
thumbnail_IMG_5049.jpg
thumbnail_IMG_5050.jpg
thumbnail_IMG_5051.jpg
thumbnail_IMG_5052.jpg
thumbnail_IMG_5053.jpg
thumbnail_IMG_5054.jpg
thumbnail_IMG_5055.jpg
thumbnail_IMG_5056.jpg
thumbnail_IMG_5057.jpg
thumbnail_IMG_5058.jpg
thumbnail_IMG_5059.jpg
thumbnail_IMG_5059a.jpg
thumbnail_IMG_5060.jpg
thumbnail_IMG_5061.jpg
thumbnail_IMG_5039.jpg
thumbnail_IMG_5040.jpg
thumbnail_IMG_5041.jpg
thumbnail_IMG_5042.jpg
thumbnail_IMG_5043.jpg
thumbnail_IMG_5044.jpg
thumbnail_IMG_5044a.jpg
thumbnail_IMG_5044b.jpg
thumbnail_IMG_5045.jpg
thumbnail_IMG_5046.jpg
thumbnail_IMG_5048.jpg
thumbnail_IMG_5049.jpg
thumbnail_IMG_5050.jpg
thumbnail_IMG_5051.jpg
thumbnail_IMG_5052.jpg
thumbnail_IMG_5053.jpg
thumbnail_IMG_5054.jpg
thumbnail_IMG_5055.jpg
thumbnail_IMG_5056.jpg
thumbnail_IMG_5057.jpg
thumbnail_IMG_5058.jpg
thumbnail_IMG_5059.jpg
thumbnail_IMG_5059a.jpg
thumbnail_IMG_5060.jpg
thumbnail_IMG_5061.jpg
sold out

High Return on Capital Employed ROCE using Council funds for renovation in Abertilery (24% BMV) Money out under 2 years (smp006)

349.00

Reserve this investment opportunity for £349

Figures in Brief:
Sale Agreed at: £45,500 (cash)
Estimated Done Up Value: £99,000
1st exit: Flip Profit: £17,145
2nd exit: Cash Flow (BTL): £183.44  - Money out in 1.9 years

Property Description: Lovely mid terrace property based in heart of Abertillery. Currently a generous sized two bed property with scope to create a third bedroom by moving the bathroom.
Walk through the front door into the hallway, turn left into an open plan lounge and dining room area. There is a considerable amount of damp against the wall by the windows at front and rear. This is due to the guttering being completely blocked up and water has poured on to the wall and come through. The same has happened at the back. Outside of the house needs spraying to seal it. The house has also not been lived in for some time so there's been no heating on which hasn't helped.
Walk through dining area into kitchen. Back door here to the yard area and raised grass area.
Go up the stairs straight ahead to a large bathroom with boiler and water tank. Then large bedroom 2 on right and walk across generous sized hallway space to larger bedroom 1 which has two large windows.
All double glazing is good.

Create bedroom 3:
The bathroom can be rehoused into part/section of bedroom 2 with the window (at rear of property near soil pipe), put in new stud wall. Knock through old existing wall to bedroom 1.
Then rip out existing bathroom to create large bedroom.
Then look at pic of hallway/bannister, there is ample space to bring the bedroom 1 wall here forward in line with the bannister, create door way here, then another doorway to its right with a stud wall between the two windows of bedroom 1, the second bedroom picking up the remaining space left over from old bedroom 2. This will make two good sized bedrooms as both have gained extra valuable space.
This property has great potential to become a lovely 3 bed family home for a buy to let. Strong rental area, near local amenities, town centre and schools.

Add To Cart

Property Information:

Property Address: Queen Street, Abertillery

Number of Bedrooms (current): 2

Is there potential to add a bedroom?: yes

Reception Rooms: 2

Bathrooms/shower-rooms: 1

Property Asking Price: £59,950

Agreed Sale Price: £45,500 (24% BMV)

Fair Market Value (DUV): £99,000

Comparable 1: https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=68028545&sale=6205219&country=england £90k part done up

Comparable 2: https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=70741901&sale=7230742&country=england 94k done up

Comparable 3: https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=22776968&sale=8716759&country=england £100k Dec 2018

If no comparables, please state why there are no direct comparables: Currently for sale - all done up :
https://www.rightmove.co.uk/property-for-sale/property-79652693.html £110k 3 beds
https://www.rightmove.co.uk/property-for-sale/property-79783148.html £109,995 2 beds
https://www.rightmove.co.uk/property-for-sale/property-67857019.html £109,950 3 beds
https://www.rightmove.co.uk/property-for-sale/property-70038652.html £104,950 2 beds
https://www.rightmove.co.uk/property-for-sale/property-79932266.html £99,950 3 beds

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: BTL

Exit Strategy 2: Cash Purchase Flip (or bridge)

Exit Strategy 3: Capital Growth

If HMO strategy please select: N/A

Potential Target Demographic: Families  


Refurbishments Required

Refurbishment Costs: Budget: up to £26,500

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.

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

Clear gutting
Spray all of house to seal it
Rip out existing
Skim some downstairs walls and kitchen
New kitchen
Tidy garden
New bathroom
relocate bathroom
Stud wall
2 new doorways, short stud wall and long stud wall
New doors x6
Skirting board for new bedrooms
Plasterboard and skim for new bedroom walls
Skim old bathroom - now bedroom
New boiler and central heating system
Rewire
Paint and decorate
New flooring


Flip Figures (Buy, Renovate, Sell)

Purchase Price: £45,500
Refurb costs: £26,500.00  The local council in this area are offering a 0% loan of up to £25,000
Entry legal costs: £1200.00
Exit legal costs: £1200.00
Stamp Duty: £1365
Survey: £450.00
Broker Fee: £0
SMP Consultation Fee: £3497.00
6 months of bills: £750 (Council Tax BONUS!! - this property has been vacant for more than 6 month meaning the council will give you 6 months free whilst refurbishing the property)

Estate agent selling fees: £1692

RESALE PRICE: £99,000

Profit: £17,145


BTL Figures (Buy to let)

Purchase Price: £47,500
Refurb costs: £26,500 The local council in this area are offering a 0% loan of up to £25,000
Legal costs: £1200.00
Stamp Duty: £1365

Survey: £ 450
Broker Fee: £0
SMP Consultation Fee: £3497.00
6 months of bills: £750 (Council Tax BONUS!! - this property has been vacant for more than 6 month meaning the council will give you 6 months free whilst refurbishing the property)
Rental Income: £500.00
New Mortgage (3.5%): £216.56
EA Rate (10%): £50
MOE rate (10%): £50

CASH FLOW: £183.44

Money Left In: £4712

Years to paid back: 2 years 


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.
Nearby 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, with families often choosing to stay in the area indefinitely.
Nearby Cwmbran offers an easy commute for the new super hospital which is currently being built and opens in spring 2021. The super hospital will create 600 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 – 2.6 miles. 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 gold club.
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:
• 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)

Nearest Train Station: Llanhilleth 2.6 miles

Any 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
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 £3497(inc VAT) which is paid on completion of the sale. A £349 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