Ideal dual exit strategy property in popular Ebbw Vale will Buy to let or Flip

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Ideal dual exit strategy property in popular Ebbw Vale will Buy to let or Flip

399.00

Reserve this investment opportunity for £399

Figures in Brief:
Sale Agreed at: £66,000
Estimated Done Up Value: £120,000
1st exit: Flip Potential Profit: £16,365
2nd exit: Cash Flow (BTL): £ 185

Property Description:  This is a large spacious 2 bed mid terrace based in beautiful Ebbw Vale. The property is a deceased estate, in excellent condition but very dated and in need of some TLC, refurbishment and a rejig of the layout to get the best out of the house to accommodate modern day family living. Lovely sized garden at the rear of the property with a detached garage. Garage is in good condition. Garden has been well kept. Exterior of house is in good condition.

From the front door, enter into the hallway, and turn right into the lounge. Lounge is of good size plus has large window and fireplace. Dining room is also accessed from the hallway, which is also of good size plus window and fireplace. The kitchen is housed in the extension at the rear of the building and the bathroom is at the end of this. There is a door which accesses the garden at the rear - the garden is of a very good size. There is a walk way through to the end of the garden where there is a large detached garage and access to the lane at the rear.

From the hallway there is a set of stairs that goes up to the landing where there is a window at the top. From there access two large bedrooms.

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Property Information:

Property Address: Eureka Place, Ebbw Vale, NP23 6..

Number of Bedrooms (current): 2

Is there potential to add a bedroom?: YES - add bedroom 3

Reception Rooms: 2

Bathrooms/shower-rooms: 1

Property Asking Price: £72,500

Agreed Sale Price: £66,000

Fair Market Value (DUV): £120,000

Comparable 1: https://www.rightmove.co.uk/property-for-sale/property-73627225.html £119,500

Comparable 2: https://www.zoopla.co.uk/property/60-tredegar-road/ebbw-vale/np23-6ns/16791665 £122,950

Comparable 3: https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=65262547&sale=9520264&country=england £119,950

If no comparables, please state why there are no direct comparables: https://www.bidmeadcook.co.uk/property-search/property/ube0998/3-bedroom-property-for-sale-ebbw-vale/place-ebbw%20vale/glyn%20ebwy/county-blaenau%20gwent/radius-3/soldandsaleagreed-includesaleagreed/pagenumber-5/lat-51.7779197886239/lon--3.21169867711348/propertyindex-49
£127,500

https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=73921016&sale=8436178&country=england £134,950

https://www.rightmove.co.uk/property-for-sale/property-84152228.html £139,950

FOR SALE:
https://www.rightmove.co.uk/property-for-sale/property-72454399.html £125k

https://www.rightmove.co.uk/property-for-sale/property-73811335.html?utm_content=v2-ealertspropertyimage&utm_medium=email&utm_source=emailupdates&utm_campaign=emailupdates1day&utm_term=buying&sc_id=29807490&onetime_FromEmail=true&cid=4200ad8b-0ebc-4885-8655-a436f68bda4b&csg=2ae7a3d6984a0417de625dc9e7be33593dac2755c4900afb39d4ee9e111428fc £130k

https://www.rightmove.co.uk/property-for-sale/property-73098940.html £135k

NOT DONE UP:
https://www.bidmeadcook.co.uk/property-search/property/ube0985/3-bedroom-property-for-sale-tredegar-road-ebbw-vale/place-ebbw%20vale/glyn%20ebwy/county-blaenau%20gwent/radius-3/soldandsaleagreed-includesaleagreed/pagenumber-3/lat-51.7779197886239/lon--3.21169867711348/propertyindex-26 £84,950

https://www.bidmeadcook.co.uk/property-search/property/ubb0752/4-bedroom-terraced-house-for-sale-alexandra-street-ebbw-vale/place-ebbw%20vale/glyn%20ebwy/county-blaenau%20gwent/radius-3/soldandsaleagreed-includesaleagreed/pagenumber-3/lat-51.7779197886239/lon--3.21169867711348/propertyindex-29 £89,950

https://www.rightmove.co.uk/house-prices/detailMatching.html?prop=55415493&sale=56170652&country=england £70k

Market Status: Sale Secured by Sourcing Agent

Why is the property being sold?: Sale identified by sourcer (pen 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: £24,600

Rip out existing
Paint and decorate for Curb appeal (reveals, sills, door number, hanging baskets)
Tidy the garden
Skim whole house top to bottom
Need new boiler
Need new central heating system/radiators
Keep existing Kitchen (it's new), but add extra units (budget £1000)
Need new bathroom
Replace x 3 internal doors
Paint and decorate throughout
New flooring throughout

How to add value to this house:
Create bedroom 3 by splitting up large bedroom at front of house (add stud wall, door, architrave, skirting board)
Take out existing staircase, put in new winder set with landing part way up (starting in dining room) to create extra floor space upstairs
Create archway/doorway between lounge and diner
Move the bathroom upstairs to the top of the stairs (window already in place), add stud wall, door, architrave, skirting board
Tidy up electrics (budget £500)
Remove stud wall between kitchen and bathroom, remove old bathroom - this space then becomes larger kitchen area (as kitchen is currently not that big), but retain small area for downstairs wc.

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: £66,000
Refurb costs: £ 24,600
Entry legal costs: £1200
Exit legal costs: £1000
Stamp Duty: £1980

Survey: £450
Broker Fee: £400

SMP Consultation Fee: £3995

Estate agent selling fees: £1641

RESALE PRICE: £ 120,000

Potential Profit: £16,365


BTL Figures (Buy to let)

Purchase Price: £66,000
Refurb costs: £24,600
Legal costs: £1200
Stamp Duty: £1980

Survey: £ 450
Broker Fee: £400
SMP Consultation Fee: £3997
Rental Income: £560
New Mortgage (3.5%): £262.50

EA Rate (10%): £56
MOE rate (10%): £56

CASH FLOW: £185.50

Money left in deal £10,993

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:  Ebbw Vale is a thriving town, nestled in the hills at the top of the Heads of The Valleys Road, which offers excellent links to Abergavenny and the South. The area has excellent schools and facilities such as a leisure centre and a newly refurbished cinema in Brynmawr's market square where a weekly local market is held. Ebbw Vale holds a huge weekly market each Friday in the town centre which brings lots of visitors to the area.

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/

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 end 2018. 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

Nearest rail link is Ebbw Vale – 1.6 mile. It has train links that get you to Cardiff central in 1 hour

Entertainment/Leisure - Great selection of local bars, restaurants and a cinema. Ebbw Vale sports centre has some great facilities including a gym, swimming pool with diving facilities and can host a range of events which have included The Royal Shakespeare Company, Mixed material Arts Events, Swimming Galas and is just 3 miles.

A number of restaurants are within 5 miles of the property. There is a Halfords, Asda superstore, Tesco, Morrisons, public parks, Golf club, Rugby/Football club and Cinema within a few miles of the property, offering great amenities and leisure in close proximity to the property. Local theatre and Beaufort Hill Ponds and Woodlands.

It's an easy commute to nearby Cwmbran where the new super hospital is currently being built and opens in spring 2021. The super hospital will create new 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

Accommodation Premier Inn 3 star

SCHOOLS within the area
• Beaufort Primary School
• Glyn Coed
• Rhos y Fedwen
• Willowtown Community
• Ebbw Fawr Learning Community - Secondary super school

Nearest Train Station: Ebbw Vale 1.6 miles (6 mins in car) Ebbw Vale Parkway 1.6 miles (6 mins in car)

Any key journey times: Abergavenny 11.9 miles
Llanfrechfa hospital 19 miles (32 mins)
Newport 21 miles
M4 motorway 21 miles
Bristol 51 miles (1 hour 9 mins)
Merthyr Tydfil 10 miles


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