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Redevelopment - Case Study 1
About The PropertyThe mid terrace house was located in the popular area of Canton on Lansdown Road, within walking distance of Cardiff City Center and Cowbridge Road shopping precint. The two storey house consisted of 4 bedrooms, 3 large reception rooms, bathroom, kitchen, rear garden and large attic space, which gave us plenty of space to work with on this project.
Our Plans For The PropertyHaving purchased the house for £109,000 in early 2010 we decided after our market research to convert the house into 2 flats one being 2 bedrooms and the other 3 bedrooms both aimed at the profesional market, thus using the full potential of the property space, giving us maxinum yield both in rental or sales income.
Our Property AssessmentWe decided due to market conditions to let the house out short term, ensuring rental income was recieved whilst planning permission was sought and deciding on the new layout of the flats with our architect. We contacted reputable trusted contractors for quotes and detailed works schedule, this gave us the extent of the building work, time frames and finishes required.
The ProjectThe project was a complete redevelopment including total gutting of property, new floor layout, roof replaced, extention at rear, loft conversion for bedrooms, fitting of new kitchens and bathrooms, rewiring, plumbing, seperate utilities and water supply to each flat, sound proofing, laminated flooring, plastering and decorating through out. The project was scheduled to take 6 months, but the project did over ran by 3 weeks.
The CostThe complete cost to redevelope property was £95,000 which covered the following outgoing, gutting and removing rubbish, designing, building works, utilities, labour, materials, sound proofing, white goods, decorating and finishing ready for tenants to move in.
The ResultsThe project was completed 3 weeks late but this did not effect our budget, as we negotiated a fixed price with our contractor. We targeted the unfurnished flats to the professional rental market, achieving our target rent for both flats with income returns as follows:
- Rent achieved before development £600.00
Rent achieved after development was completed:
- 2 Bedroom flat £550.00
- 3 bedroom flat £650.00
The total rent recieved pcm is £1200.00, an increase of £600.00 or an additional rental income of £7200.00 pa. with a annual yield of just below 7%.
Putting the flats up for sale, the market values would be:
- 2 Bedroom flat market value £135.000
- 3 Bedroom flat market value £155.000
The market value for the property if both flats were to be sold together would be £290.000 as of 2012, giving us a gross profit of £86.000 if sold.
We Can HelpHensons homes can help you find the right investment or development, organise planning and architects, supervise main building contractors. We will make sure everthing stays on budget ensuring maximum returns are achieved for you. Why not take the next step in to property development and give us a call we will make sure it happens.