Property For Sale Birmingham,UK

 Discounted property for sale

 

3 Bedroom End Terraced House 

 

The Ridgeway, Erdington, Birmingham, B23 7TH

 

Market Value = £180,000

Purchase Price = £165,000

Finders Fee = £1,000

 

Potential Gross Income = £16,632 per annum

 

Great Investment Opportunity!

 

For a limited time only, we have managed to secure a 3 Bedroom End Terraced House direct to vendor in a fantastic location ripe for HMO use.

 

It has been used as a family home for many years now looking to downsize. Property has had some work done to it in recent years plus an extension to add value.

 

The property consists of:

 

·        3 Bedrooms

·        2 Bathrooms

·        2 receptions

·        Kitchen Diner

·        Low Maintenance Garden

·        Driveway

 

The property has a potential to be used as a 4 bed HMO and 5 Bed HMO if you get the licence, please check this with local authority.

 

Birmingham is due to introduce Article 4 in June 2020 and therefore NOW IS THE PERFECT OPPORTUNITY TO ACQUIRE PROPERTY IN THIS AREA.

 

Other wise from recent rental valuations from local estate agents they suggest rental figures from £765 to £850 per calendar month.

 

Location

The property is located in an ideal residential area close to local amenities. 

 

·        2.9 miles from Star City Leisure Complex

·        3.2 miles from University of Aston

·        2.1 miles from Midlands Medical Practice

 

 

Rental

The property can potentially be used as a HMO in which case please see figures below:

 

 

·        Room 1 = Potential to achieve £85 pw = £368 pcm

·        Room 2 = Potential to achieve £85 pw = £368 pcm

·        Room 3 = Potential to achieve £85 pw = £368 pcm

·        Room 4 = Potential to achieve £65 pw =£ 282 pcm

 

Which would then achieve a potential income of £1,386 pcm = £16,632. 

 

Or as a single let you would achieve rental figure of:

 

£800 pcm = £9,600 per annum

 

The Vision 

 

·        To purchase the property for £165,000, rent out to generate a healthy cashflow

·        Purchase and refinance after 6 months against the true market value to pull out some of your investment

·        convert the property into a 4/5 bed HMO and enjoy the cashflow

 

Costs to Consider as a HMO:

 

·        Mortgage cost at 4% = £413 pcm

·        Utilities = £260 pcm (£65 per person pcm)

·        Management at 10% + Vat = £167 pcm

 

CASHFLOW AFTER ALL THE ABOVE COSTS 

Managed = £546 pcm = £6,552 per annum

Self Managed = £713pcm = £8,556 per annum  

 

Capital Required To Get Involved: 

 

·        Purchase Price = £165,000

 

·        25% Deposit = £41,250

·        Stamp Duty = £5,750

·        Legals = £1,000

·        Sourcing Fee = £1,000

 

Total Capital Required = £49,000

 

The Return on Investment based on an investment of £49,000 =

 

Managed 13%

Self Managed 17%