Property Description

Property Investment Opportunity: We present an exceptional investment opportunity in the highly sought-after area of Neath. This property at 5 Cleighton Terrace is strategically located in a private lane, offering a quiet retreat while remaining close to essential amenities and transport links.

Property Overview: This three-bedroom house requires a quick renovation, presenting a prime opportunity for value addition. The proposed renovations include a rip-out, rewire, replumb, and install a new kitchen and bathroom, along with finishing touches to enhance its appeal. With an estimated rental income of £850 per month, this property is positioned to generate a strong return on investment.

Location Benefits: Cadoxton is a desirable neighbourhood for professionals and families alike. The area boasts proximity to schools, workplaces, and essential transport links. Local amenities are within walking distance, ensuring convenience for tenants. The community is also well-served by public transport, making travel to nearby cities seamless. For families, the presence of reputable schools and parks enhances the area’s appeal. Meanwhile, professionals benefit from the easy commute to employment hubs. This offers a diverse tenant base, including those on income support, ensuring sustained rental demand.

Market Potential: The property is projected to revalue at approximately £140,000 post-renovation, supported by strong comparable sales in the vicinity. Recent sales data indicate stable property values in Cadoxton, underscoring the area's resilience and growth potential. Investing in this property not only offers immediate rental income but also a robust long-term capital appreciation strategy. The buy, renovate, and refinance model is ideal for investors looking to maximize their returns in a thriving market.

Conclusion: In summary, this is an ideal entry-level buy-to-let investment. With its strategic location, potential for value addition, and strong rental demand, this property is positioned for success. Don’t miss the opportunity to secure a promising asset in one of Neath's most desirable neighborhoods.

Number of Bedrooms (current): 2

Is there potential to add a bedroom?: No

Reception Rooms: 1

Bathrooms/shower-rooms: 1

Property Asking Price: £110000

Agreed Sale Price: £79000

Fair Market Value (DUV): £140,000

Comparable 1: Sold £170,000 (Semi Detached 2 bedroom): https://www.rightmove.co.uk/house-prices/details/england-154035074-22614757?s=be8567c286327dc63cb2b0c577cd65f5781087e6ad093e48b87313fc5da88407

Comparable 2: Sold STC £180,000 (Mid terrace 2 bedroom): https://www.rightmove.co.uk/properties/160361813#/?channel=RES_BUY

Comparable 3: Sold STC £170,000: https://www.rightmove.co.uk/properties/156238595#/?channel=RES_BUY

We have estimated this property's finished value at £140,000, taking a conservative approach despite higher valuations for two-bedroom homes in the area. Our strategy is to underpromise and overdeliver on our investments.

While this property does not offer direct parking, there is parking available to the rear and side, which may slightly influence the price. Additionally, the floor space is not as expansive as some of the comparable two-bedroom properties.

That said, given the desirability of this area, I would not be surprised to see a valuation of £150,000 as well.

Market Status: Open Market, sale identified by sourcer.

Why is the property being sold?: Landlord Selling Assett

Is the property in a lettable condition: Yes

Is the sale price negotiable?: No

Property Type: Mid Terrace 2 bedroom

Freehold or Leasehold: Freehold

Exit Strategy 1: Buy, renovate, refinance and rent. (BTL)

Exit Strategy 2: Flip

Exit Strategy 3: Capital Appreciation

Potential Target Demographic: Young Family, First-time buyer, single-parent household.

BTL Figures

Purchase Price: £79,000

Refurb Costs: £33,500

Entry Legal Costs: £1600

Exit Legal Costs: £1000

Stamp Duty: £3950

Survey Costs: £450

Tiger Burrows Consultation Fee: £2997

Estimated 6 months bills costs: £750

Estate Agent Selling Fees: £2500

Flip Figures

Purchase Price: £79,000

Refurb Costs: £33,500

Entry Legal Costs: £1600

Exit Legal Costs: £1000

Stamp Duty: £3950

Survey Costs: £450

Tiger Burrows Consultation Fee: £2997

Estimated 6 months bills costs: £750

Estate Agent Selling Fees: £2500

Total Costs for investor: £126,747

Re-sale price (DUV): £140,000

Estimated Flip Profit: £13,253

Refurbishments Required:

Week 1: Rip Out and Build Preparation

• Activities:

  • Remove outdated fixtures, fittings, and surfaces from the kitchen and bathroom.

  • Prepare the site for plumbing, electrical, and structural work.

• Estimated Cost: £4,500

Week 2: Project Management and Planning

• Activities:

  • Finalise renovation plans and obtain necessary permits.

  • Hire contractors and schedule timelines.

  • Initial site assessment and contractor briefing.

  • Continued management through to sales or letting.

• Estimated Cost: £3,500 (Project Management)

Week 3: Electrical Work

• Activities:

  • Rewire the entire house, ensuring compliance with safety standards.

  • Install new light fixtures and outlets according to the renovation plan.

• Estimated Cost: £5,000

Week 4: Plumbing

• Activities:

  • Replace old plumbing systems with new installations in the kitchen and bathroom.

  • Ensure all water systems are leak-free and functional.

• Estimated Cost: £4,500

Week 5: Building Repairs

• Activities:

  • Address any issues, including wall and ceiling repairs.

  • Repair or replace damaged woodwork as necessary.

• Estimated Cost: £3,000

Week 6: Kitchen Installation

• Activities:

  • Install new kitchen cabinets, countertops, and appliances.

  • Ensure all installations are functional and aesthetically pleasing.

• Estimated Cost: £7,000

Week 7: Bathroom Installation

• Activities:

  • Install new bathroom fixtures, tiles, and fittings.

  • Ensure compliance with plumbing and safety standards.

• Estimated Cost: £4,000

Week 8: Flooring Installation

• Activities:

  • Install new flooring throughout the house (laminate and carpet).

  • Complete installation of skirting boards and door frames.

• Estimated Cost: £3,000

Week 9: Painting and Finishing Touches

• Activities:

  • Paint walls and ceilings for a fresh and modern look.

  • Add finishing touches such as light fixtures, hardware, and decor.

• Estimated Cost: £2,000

Week 10: Final Inspection and Cleaning

• Activities:

  • Conduct a thorough inspection of all completed work.

  • Perform a deep clean of the property to prepare for viewings.

• Estimated Cost: £2,500

Total Estimated Cost: £33,500

This renovation schedule outlines a structured approach to transforming this property into a desirable rental property. Each phase focuses on maximising the property's value while ensuring a smooth and efficient renovation process within the allocated budget.

Area Brief:

For a full and detailed area statistic breakdown visit: https://www.streetcheck.co.uk/postcode/sa108bb