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PROPERTY INVESTMENT BROCHURE ERDINGTON – NCER1 (HMO)
PROPERTY INVESTMENT BROCHURE
ERDINGTON – NCER1 (HMO)
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PROPERTY INVESTMENT BROCHURE | ERDINGTON – NCER1
Headline Figures Key Investment Features Location Overview
Comparable Evidence
Current Photos 2D Floor Plan
INVESTMENT OVERVIEW REFURBISHMENT DUE DILIGENCE
BREAKDOWN OF FIGURES
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PROPERTY INVESTMENT BROCHURE | ERDINGTON – NCER1
Headline Figures Key Investment Features Location Overview
INVESTMENT OVERVIEW
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PROPERTY INVESTMENT BROCHURE | ERDINGTON – NCER1
KEY INVESTMENT FEATURES This property is currently an attractive 3-bed end-of-terrace.
The large rooms and high ceilings make it ideal for an HMO conversion.
The property is in a great location within walking distance of the Erdington town centre and within two stops of Birmingham city centre.
Erdington is among our best-performing area for lettings and as such we always recommend investments in this area.
Newbrick manages numerous HMO properties in the vicinity, so we have extensive experience in the local market.
TOTAL INVESTMENT (CASH)
£244,200
TOTAL INVESTMENT (MORTGAGE) £115,950
GROSS YIELD – 13%
GROSS RENT £32,240 PA
HEADLINE FIGURES
ERDINGTON, BIRMINGHAM
BUY TO LET - HMO
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PROPERTY INVESTMENT BROCHURE | ERDINGTON – NCER1
Local Scenic Spot
Shopping Centre
Local Hospital
Innovation Birmingham: Home to more than 86 tech companies working in a variety of fields, most enrolled in the “Entrepreneurs for the Future” Scheme
The Property
LOCATION OVERVIEW Nearby rail station, great links to other major cities as well as directly to London
The Bull Ring: Major, landmark commercial centre in Birmingham which has a history as a market dating back to the middle ages.
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PROPERTY INVESTMENT BROCHURE | ERDINGTON – NCER1
Market Birmingham is the United Kingdom’s second biggest conurbation after London and is unquestionably an attractive location to invest in property. Twinned with Chicago, United States and Guangzhou, China this industrial powerhouse is a central hub for trade, commerce and prosperity. Recently voted by ‘This is Money’ and ‘The Telegraph’ as one of Britain's top 10 investment hotspots, it is definitely the right time to get on the ladder for both first time buyers and experienced buy-to-let landlords. In addition, recent research suggests that while only 11% of housing is being privately rented, demand is actually exceeding supply in this particular area by around 23%. What this means for property investors is that there is a large, young working population and a lack of rental accommodation available to tenants. Economy The city of Birmingham is a significant manufacturing and engineering centre, employing over 100,000 people in the industry and contributing billions to the national economy. Birmingham also benefits from excellent road, rail and air links. It is a major international commercial centre, ranked as an important transport, retail, events and conference hub, attracting individuals, business start-ups and multinational organisations such as Jaguar, Cadbury Trebor Bassett, Goodyear Dunlop, Price Waterhouse Cooper, Deloitte & Touche and Eversheds.
Location Overview
High Speed 2 – The super-fast direct train line linking Birmingham and London is the crowning aspect of hundreds of millions of pounds investment into local infrastructure including the airport and metro services. .
Selly Oak Regeneration – This is a scheduled £100 million plan to redevelop the heart of Selly Oak. The aim is to regenerate an area of Brownfield land into a large mixed-use complex. It will include large leisure and retail area, office space and a life-sciences campus. With the project expected to create at least 2,700 jobs for the local area, it will be another jewel in the crown of the ‘Big City’ plan.
Since the launch of the ‘Big City’ plan in 2007, Birmingham has seen more than £1 billion investment drive to upgrade the entire city. Key developments include:
Regeneration
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PROPERTY INVESTMENT BROCHURE | ERDINGTON – NCER1
Current Photos Refurbishment Overview 2D Floor Plan
REFURBISHMENT
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PROPERTY INVESTMENT BROCHURE | ERDINGTON – NCER1
Current Photos
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PROPERTY INVESTMENT BROCHURE | ERDINGTON – NCER1
Recent Newbrick Studio Refurbishments
“This property, once complete, will be another to add to the list of top-class HMO investments we have completed in Erdington. The main work for studio conversions is always the drainage, central heating systems, hot water systems and electrical installation. This is the case here and this will require a good portion of the budget. It is a positive step by not only adding value to the property but also ensuring that it is as energy efficient as possible. There is also a balance to this cost, as Birmingham City Council has less stringent fire safety requirements than some other regions. The result is that the cost to make the property compliant is much less than usual. En-suites will be added to each room along with breakfast bars to ensure that the rental incomes achieved are firmly at the top-end for the area. The rooms are already bright and spacious but there will be redecoration and re-carpeting throughout as well as all-new furnishings. The remainder of the internal works will be a minor reconfiguration of the layout. A brand new kitchen will be installed along with new white goods to make sure the tenants also have the best possible communal cooking facilities. We have a good track record in Birmingham and have done some very attractive refurbishments. Overall, once complete, this will be a great conversion, set over 3 floors, within 5 minutes’ walk of Erdington town centre as well as within easy reach of the train into central Birmingham.”
Refurbishment Overview
Newbrick Property Head of Refurbishment
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PROPERTY INVESTMENT BROCHURE | ERDINGTON – NCER1
2D Floor plans
Floor Plans to be Available on Request
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PROPERTY INVESTMENT BROCHURE | ERDINGTON – NCER1
Comparable Evidence
DUE DILIGENCE
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PROPERTY INVESTMENT BROCHURE | ERDINGTON – NCER1
COMPARABLE EVIDENCE | RENTAL PRICE COMPARABLES
Moor End Lane, Erdington
Type of Room Double e-s
Asking price £110 p/w
Distance 0.2 miles A recent Newbrick refurbishment. This property achieves good rents and has a mix of studio rooms and double en-suites.
Kingsbury Road, Erdington
Type of Room Studio
Asking price £105 p/w
Distance 1 mile Another property to a good standard, this is a similar distance from the high street as the investment and has some similar internal features. This again verifies that the targeted rents per week are eminently achievable.
Lansdowne Road, Erdington
Type of Room Studio
Asking price £110 p/w
Distance 1.5 miles This last comparable property is a Newbrick refurbishment. Again, it achieves similarly high rents to the above examples and consistently lets well.
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PROPERTY INVESTMENT BROCHURE | ERDINGTON – NCER1
BREAKDOWN OF FIGURES
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PROPERTY INVESTMENT BROCHURE | ERDINGTON – NCER1
Newbrick offer this property as a complete ‘hands free’ investment.
The price has been negotiated & the property agreed with the vendor Newbrick manage the purchase completely to point of completion on
behalf of the client Newbrick are CIS registered and undertake all refurbishment work as
the principal building contractors Newbrick market and sell the property in conjunction with local agents
Newbrick Fee: £12,500 + VAT
BREAKDOWN OF FIGURES*
* Figures rounded up to the nearest hundred
Purchase price £171,000
Mortgage deposit (25%) £42,750
Refurbishment cost £65,000
Transactional costs: Purchase conveyancing costs Survey costs Contingency Stamp Duty
£8,200
TOTAL INVESTMENT REQUIRED £ 115,950
RICS value after refurbishment £250,000
Gross Profit (Rent PCM) £2,686
Mortgage payments pcm (4.5%) £480
Monthly running costs: Management fee (10%+VAT) All bills (Gas, Elec, Water, Etc.) Maintenance
£846
NET monthly profit £1,360
GROSS YIELD 14%
* Figures rounded to the nearest hundred
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PROPERTY INVESTMENT BROCHURE | ERDINGTON – NCER1
23 Porters Wood St. Albans Herts, AL3 6PQ
T:01727 834458 E: [email protected] W:newbrickconsultants.com
Registered Address: 44 Squires Lane, Finchley, N3 2AT Company no: 06064991 VAT Reg no: 911425556
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