Property Description: High Street, Pontardawe

This property presents a unique investment opportunity in the heart of Pontardawe. With a generous size of 140 square meters, it offers ample space for renovation and potential for significant value addition. Although the property requires a full gut renovation, the reward for this investment is substantial.

Area Overview: Pontardawe is an area undergoing positive transformation. It is located conveniently and boasts excellent transport links, making it attractive for professionals commuting to nearby cities. The property is within walking distance of local schools, making it appealing to families. Additionally, the proximity to shopping amenities and recreational areas enhances its desirability for a broad demographic, including tenants on income support.

Investment Potential: The average price per square meter for well-presented properties within half a mile is currently £1,978. Based on this metric, the potential end value of this property could reach £277,000 upon completion of renovations. However, playing it safe, we estimate a conservative sale price of £230,000, based on sold comparable properties in the area. This property also features an ex-commercial element at the front. This space could be repurposed for separate rental income, maximizing your return on investment. Whether you choose to sell after renovation or retain it as a dual-income asset, the options are versatile.

Rental Demand and Stability: The rental market in Pontardawe is strong, with steady demand from professionals, families, and those seeking affordable housing options. The area’s ongoing regeneration schemes bolster property values, ensuring stability and growth. This makes High Street an attractive investment for generating a reliable income stream.

Conclusion: In summary, this property is a sound investment opportunity with significant upside potential. With its large size, strategic location, and the possibility of generating dual income, it is an ideal project for investors looking to maximize returns in a promising area. Don’t miss out on the chance to capitalize on this opportunity in a market that is set for growth.

Number of Bedrooms (current): 4

Is there potential to add a bedroom?: No

Reception Rooms: 3

Bathrooms/shower-rooms: 1

Property Asking Price: Offers over £130,000

Agreed Sale Price: £128,000

Fair Market Value (DUV): £230,000

Comparable Report:  When evaluating the sold comparables for this property, it’s essential to highlight a few key points. This house is approximately 40 square meters larger than the comparable properties in the area. Additionally, there are very few four-bedroom homes available, and this property features four spacious double bedrooms, setting it apart from the competition.

Here are the relevant comparables that illustrate the market potential:

- **Sold for £240,000:** (https://www.rightmove.co.uk/house-prices/details/england-119295905-22617661?s=a34c6a09e6ff7a498716b12b40259f06ef520832cc620744ba23ac78e4dbf8df)

- **Sold for £200,000:** (https://www.rightmove.co.uk/house-prices/details/england-130881632-21245104?s=3c079441668276764757a2571a4890506f9167c55dbd2850a60d682243826251)

- **Sold for £210,000:** (https://www.rightmove.co.uk/house-prices/details/england-43205071-21781984?s=dbc7342e025acbfc82068ed941e2240fe4c9bbce4a4db29b8e9ae764b39fe27d)

- **Sold for £205,000:** (https://www.rightmove.co.uk/house-prices/details/england-131732723-18873430?s=76a4902d209dd9e3ff77411ccc098619ea87c95bd0543a4257da022406ea9e59)

- **Sold for £310,000:** This is a four-bedroom new build, which typically commands higher prices. However, it underscores the value of a four-bedroom home in this area.
(https://www.rightmove.co.uk/house-prices/details/england-16083818-20969116?s=02abe46e07155758c9873a38e7e6d4d75fecab11e63880ae0498d5f79d0aa742)

- **Sold for £380,000:** Another new build four-bedroom home, highlighting the premium that new constructions can fetch.
(https://www.rightmove.co.uk/properties/161313215#/?channel=RES_BUY)

- **Sold for £325,000:** This four-bedroom new build also reflects the higher market values for such properties.
(https://www.rightmove.co.uk/properties/156916760#/?channel=RES_BUY)

- **Sold for £235,000:** (https://www.rightmove.co.uk/properties/159383804#/?channel=RES_BUY)

- **Sold for £239,995:** (https://www.rightmove.co.uk/properties/153782996#/?channel=RES_BUY)

These comparables clearly indicate the strong market demand for four-bedroom homes in the area, especially those with spacious layouts. The larger size of this property, combined with its unique features, positions it favorably for a profitable investment.

Market Status: off market

Why is the property being sold?: Distressed Seller

Is the property in a lettable condition: No

Is the sale price negotiable?: No

Property Type: House

Freehold or Leasehold: Freehold

Is the property part of portfolio?: Yes, seller has more

Exit Strategy 1: Cash Purchase Flip (or bridge)

Exit Strategy 2: BTL

Exit Strategy 3: Capital Growth

Potential Target Demographic: Families

Refurbishments Required: Total Duration: 10 Weeks Total Budget: £55,000
Management Fee: An Additional 10% for hands-off management

Week 1: Rip Out and Prep
Clear the space by removing old fixtures and debris, making it ready for renovations.

Week 2: Install Windows and Doors
Upgrade to new, energy-efficient windows and doors for better insulation and security.

Week 3: Repair Bathroom Roof
Fix any leaks or structural issues with the roof above the bathroom to ensure it’s safe and weatherproof.

Week 4: Layout Changes
Create space for a new en suite bathroom in the master bedroom by making layout adjustments.
(If BTL create simple separate access for the front commercial section)

Week 5: Create Kitchen Diner
Transform the kitchen area into a kitchen diner, opening up the space for modern living.

Week 6: Upgrade Heating System
Update the gas central heating system for improved comfort and efficiency, ensuring it is tested and certified.

Week 7: Rewire Electrics
Update the electrical system to meet safety standards and support new appliances.

Week 8: Plastering
Smooth out walls and ceilings to prepare for painting and finishing touches.

Week 9: Bathroom Supply and Fit
Install the new bathroom fixtures, ensuring everything is properly fitted and functional.

Week 10: Kitchen Supply and Fit
Install the new kitchen with modern appliances and fixtures.

Final Touches: Woodwork, Paint, Flooring, Garden, and Curb Appeal
Finish with woodwork and doors, paint the interior, install flooring, beautify the garden, and enhance the exterior to attract buyers.

Estimated Refurbishment Costs: £55,000

Flip Figures

Purchase Price: £128,000

Refurb Costs: £55,000

Entry Legal Costs: £1600

Exit Legal Costs: £1200

Stamp Duty: £6400

Survey Costs: £450

Tiger Burrows Consultation Fee: £3497

Estimated 6 months bills costs: £750

Estate Agent Selling Fees: £3500

Total Costs for investor: £201,397.

Re-sale price (DUV): £230,000

Estimated Flip Profit: £28,603

BTL Figures:

For the BTL strategy, the front commercial section can very easily be split from the main house to offer a small rentable commercial unit, which could be a cake shop, small bakery, small shop, hair salon, etc. This is situated on the main school walking routes. The shop will bring £500 rent alone for the commercial section.

Purchase Price: £128,000

Refurb Costs: £55,000

Legal Costs: £1600

Stamp Duty: £6400

Survey: £450

Tiger Burrows Consultation Fee's: £3497

Estimated Rental Income: House £950, commercial £500 = £1450

New Mortgage: £7185.75

Stress Test Mortgage: £862,50

Estate Agent Rates: £145

MOE: £145

Cash Flow Most Likely: £441.25 (5% rates)

Cash Flow Stress Test: £297.50 (6% rates)