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New 4 Bed HMO in Stoke Top Spec Refurb Throughout ROI in Excess of 42% PA
New 4 Bed HMO in Stoke Top Spec Refurb Throughout ROI in Excess of 42% PA
london
£105,000.00
Nov 14, 2024
  • Seller type Agency
  • Property type House
  • Number of bedrooms 4
Description

SOLD FULLY TENANTED

TOTAL PROJECT COSTS REQUIRED FROM CLIENT, INCLUDING PROPERTY PURCHASE, REFURBISHMENT, FURNITURE, FLOORING, TENANT MARKETING AND ALL FEES AND TAXES £178,161.00

MINIMUM CLIENT CONTRIBUTION WOULD BE £106,309.75

* 4 Bed HMO – RETURNS, NET OF ALL COSTS AND FINANCE PAYMENTS ON CASH INVESTED - 42.96% !! *

PLEASE CALL OR EMAIL US FOR FURTHER INFORMATION AND OPTIONS WITH REGARDS TO THE FULL FINANCIAL BREAKDOWNS

Tel 0161 870 0010

* 4 Bed HMO – Net Returns on investment from 42.96% *

Please see below for full financial breakdown

Design and Build project in Stoke-on-Trent, Staffordshire that will enable a 4-bedroom, 4-bathroom unit with large communal kitchen

THE PROPERTY

• A sought-after area with easy access to the University, local amenities and the town centre. Only a 20 minute walk to the University campus and the Student Union bars. The town centre and train station are just a 12 minute walk away.

• Spacious enough to enable a 4-bedroom multi let: all with double rooms and 4 bathrooms plus a spacious communal kitchen.

• Staffordshire University has nearly 20,000 students and has a lively student community with over 75 nationalities represented at the University.

• Within easy access of nearby cities, just 60 minutes to both Manchester and Birmingham.

Returns in excess of 42%

INVESTMENT AND PROFIT BASED ON HMO DESIGN BUSINESS MODEL

• Initial purchase price Bricks and Mortar only £105,000.00

• Re-mortgage Bricks and Mortar after works value conservative estimate

£145,000.00

• Total spend including property purchase, all build costs, furniture, flooring &

fixtures. All fees and taxes £178,161.00

• Total cash required £106,309.75

• Real cost of business is the total spend minus the after works valuation, which in

this case is £33,161.00

• Therefore the overall cost of the business is £33,161.00

• The rental income net of all overheads and mortgage payments equals £14,248.15

• Therefore the business produces a return on investment of 42.96%

Plus a further property value increase of 20% approximately after the first years rental.

Thereafter the bricks and mortar valuation will follow the areas normal market trends say 5% PA.

5 YEAR COMPARISON

Property value bricks and mortar £211,498.08

Annual net rent over 5 years £71,240.75

Total £282,738.83 return in cash and asset.

Any future sale would include a premium for the ongoing business say 3 years net profit.

Should you sell the property at this 5 year mark, the suggested sale price would be £254,000 which would give £147,079.75 total profit on your investment.

CHOOSE STOKE-ON-TRENT : GREAT VALUE FOR MONEY : EXCELLENT POTENTIAL GROWTH RATE: FANTASTIC RETURNS

• Staffordshire University has been open since 1914 with nearly 20,000 students. This well-established University gives great potential for student tenants all requiring private accommodation after their first year in halls of residence.

• It has a thriving and diverse student population representing over 75 countries and is gold-rated university by the Teaching Excellence Framework (TEF).

• Keele University is also only a 10 minute drive from Stoke-on-Trent with the Keele University School of Medicine (UHNM Hospital Campus) being based in the heart Stoke-on-Trent with an additional 10,000 students attending.

• University Hospitals of North Midlands NHS Trust is one of the largest and most modern in the country. Highly regarded for their facilities, teaching and research across two sites in Stoke-on-Trent and Staffordshire. The 11,000 strong workforce provide medical care from Royal Stoke University Hospital and County Hospital in Staffordshire.

• With our years of experience and a solid track record in student accommodation we are able to recognise that this area offers us the chance to create bespoke, fully licenced, and regulated student properties. Once more offering fantastic prospects and excellent opportunities for high yields.

• The city is now planning the next stage of major redevelopment in the heart of the city centre. As part of the plan there is a 3,500 seater arena for concerts exhibitions, conferences and banquets, a 200 bedroom 4 star hotel, a range of food and beverage outlets, leisure facilities including a multi-use sports venue and multi-storey car parking.

• The Stoke-on-Trent and Staffordshire economy has seen a number of positive announcements regarding new investment plans and job creation. Some of the world’s biggest companies like JCB, Jaguar Land Rover and Amazon are investing millions locally. The Stoke-on-Trent and Staffordshire Enterprise Partnership has a bold and ambitious vision to transform the local economy which it calls “50:50:10″ which is the stated aim to grow the economy by 50% and generate 50,000 new jobs in the next 10 years.

THE FINISHED PRODUCT

• Will be refurbished to the highest standard and contain all the necessities for student life within the furniture pack plus WIFI, bike storage etc.

• All rooms will be rented at £95- £100 (ensuite) per person per week.

• Will be supplied, fully regulated and compliant with the local council and passed for university accommodation approval on completion of the building work with all necessary approvals.

• Will be completed including University required extras such as full fire safety accreditation. This comprises of interlinked smoke alarms in all rooms, emergency lighting systems, appropriate fire panels and heat sensors.

Do not hesitate in contacting us on 0161 230 3367 if you require any further information on the above deal.

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