Property For Sale Birmingham,UK
For sale by real estate agent - Birmingham
3 bed Property for sale
Discounted property for sale 3 Bedroom End Terraced House
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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
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.
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
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
· 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 =
Self Managed 17%