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

$220,371 | £165,000 | €184,102
Check latest exchange rates

ForSale 0 SqFt Area 2Baths 3Beds

 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% 

Allocated Parking
Central Heating
Double Glazing
Fireplace
Fitted Kitchen
Garden
On Street Parking