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GOOD NEWS FOR OUR INVESTOR – REFINANCE VALUATION IS IN

Today we received great news from our investor that the property Target Five sourced, redesigned and renovated for them in Brighton, has come back with a fantastic revaluation figure – of course we knew it would 😉 but as many of you may have also experienced re-vals since lockdown have been very tricky and not always so positive!⠀

This property was originally a two bedroom first floor, large maisonette, and was designed and renovated to a six bed/2 bath HMO with a loft conversion, which now offers a great rental yield return for our investor. The project started at the end of October last year, completing in January 2020.⠀

Preparing for the valuation survey itself is paramount, as part of Target Five’s service to our VIP Investors, we put together a comprehensive valuation report for the surveyor on the day, documenting the details around the project, the current rental income, detailed explanation of current comparable properties for both the rental and sales market, the renovation specification, planning documents and certificates/licences acquired. Meeting the surveyor in person is vital, especially if the property is tenanted, you need to be on hand to answer all questions. ⠀

All to show and prove what a success this project has been and what we believe the value to be from when we set out on this journey for our VIP Investor to make a profit on .⠀
👍 ℙ𝕦𝕣𝕔𝕙𝕒𝕤𝕖 ℙ𝕣𝕚𝕔𝕖 £300,000 ⠀
🏚️ ℝ𝕖𝕟𝕠𝕧𝕒𝕥𝕚𝕠𝕟 ℂ𝕠𝕤𝕥𝕤 £58,000⠀
👏 ℝ𝕖𝕧𝕒𝕝𝕦𝕒𝕥𝕚𝕠𝕟 £575,000 ⠀

Interested in working with T5, please call 01273 525656 or email information@targetfive.co.uk⠀

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Permitted Development

We have always looked to avoid planning where possible. Why?…⠀

Planning is slow, cumbersome and not always predictable – especially in Brighton and Hove, a council known nationwide for its restrictive approach to planning. So we have used Permitted Development (PD) opportunities. For many years this has taken the shape of C3-C4 out of A4 areas, box-dormers, 3m rear extensions etc. Adding square footage to create yield. With A4 for HMO moving city wide, and the over saturation of investors moving in to this market, we have looked to utilise other PD opportunities. ⠀

It is likely that more PD will come in addition to what has been announced in the past few weeks. This will no doubt include conversion of the new E Class of properties in non protected areas to C3.⠀

What are we looking at? Mostly Light Industrial to resi and 2 flats above commercial, in areas where we believe further PD will come. We were focussing on other things during the office to residential rush a few years ago, but this will come again with reduced reliance on office space – so we are looking at this too, where the conversion costs work and where it will make good quality and appropriate accommodation.⠀

Years ago it was all about commercial for yield and that group of landlords are now selling up or in some cases dying off! There are opportunities to be had and this could be a great few years for PD – if we do it right. Relaxed planning laws is no excuse for exploitation and profiteering!⠀

 

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Commercial To Residential – Doing It Right

In years passed the value has been turning residential into commercial property, especially in central locations. Now the tide has turned and it could be explosive. Retail has been under threat for years, but with the Covid-19 we will see all manner of commercial properties no longer become viable. This combined with a chronic under-supply of residential property we will see a huge switch.⠀

Government led relaxation of planning laws and increased Permitted Development (PD) rights will act as the facilitator.⠀

We have been moving this way for some time and plan to ride the wave but we are determined to ride it well and where possible consult with local planners even where it may not technically be needed. ⠀

We are going to be careful to keep our own ambitions in check and manage expectations of clients. With deregulation comes increased responsibility. Will we be doing as many deals as we can – yes! Will we put quality over quantity and try to do it right as well? Yes, we must.⠀

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Projects Completed

CENTURION ROAD, BRIGHTON

We are excited to show you our recent renovation completion, Centurion Road, Brighton.  We pushed on during the lockdown with a bare minimum team to complete this renovation for our returning Property Investor client, who has now completed 4 properties with Target Five.

Target Five sourced the property for our client, with works starting at the end of February 2020 and completing (with a slight delay due to Covid-19 lockdown and the difficulty in obtaining building materials).

The property was originally a 3 bed family home and is now a stunning 5 bed (planning for 6 bed) with 3 shower rooms.  The property has been finished to a high specification and the interior design was undertaken by the T5 team, to create a top end rental property, creating a fantastic yield for our client and was let off plan!

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Projects Completed

LANSDOWNE PLACE, HOVE

We are delighted to share our recent property renovation, the second of our two properties in Lansdowne Place, Hove.  Both properties were sourced and acquired for our returning Property Investor clients.  Although progress was slowed due to the Covid-19 lockdown, we have managed to complete both properties ready for the summer rental market.

The property was originally a four bed family home, which we have designed and renovated to an 8 bed/9 bathroom house.  The Target Five team also designed and furnished each room, maximising the space available by raising the beds in some of the rooms.  Each bedroom has it’s own en-suite bathroom, making the rental yield for this property fantastic!

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What is freedom to you?

We all have goals. Not all are life changing some are simply to be better at something or learn from challenges, but I believe we all have one common goal and that is to be free.

Freedom. What does it mean to you?

It is commonly perceived that money equals freedom, in fact our experience is freedom is achieved by gaining more time. More time for family, for fun, for learning. Our aim is to find ways to offer our clients that valuable commodity of time, and in turn freedom. Does this sound appealing to you? We can help, but first we have to understand a few things about your goals.

Being able to live free from your financial restraints can seem impossible, we all have bills to pay, mortgages to cover, school fees due perhaps. To help you to start on the journey to becoming less beholden to these constraints we have to first understand these costs and work out what your ‘ passive income’ figure is.

Passive income is the amount of money you would need to receive from your investment to cover the cost of living for you. Passive income by its very nature is income received without having to work. Consider how much you need every month to live comfortably and ensure all your obligations financially are met. When we know this figure it allows us to start to focus and hone in on what type of property investment is right for you. This isn’t a ‘one size fits all’ situation and we are very committed to making sure we really listen to your needs and end goal and tailor the search and investment for you.

Our next step is to consider how much you are looking to invest. It doesn’t always have to be large sums of money for us to be able to offer you a return on your investment. We are look at the best way to make your money work hard for you.

We also need to consider your appetite for risk, there are varying options for investing and some offer more risk than others. For example buying a plot of land unconditionally without any planning on hope that you will get the planning for development you are hoping for can be risky if you haven’t considered all the elements that could go wrong, however this comes with a larger reward if handled correctly and bought well.

We offer a range of investment opportunities and can help you choose the right one to give you the freedom you are looking for;

  • Standard Buy-To-Let Investment – this is a ready made option, usually buying a small one or two bedroom apartment in a central location offering an immediate monthly rental return to you.
  • Small Conversion Opportunity – Purchasing a lower value apartment, or small house where we have identified an opportunity to add value through refurbishment, extension or conversion into multiple units.
  • Large Block Investments – Purchasing a larger block that can be converted through a planning process or change of use to form large HMO’s or flats.
  • Mixed Use Investments – these have a commercial shop, office or restaurant on the premises but with a residential element usually found above. This allows a spread of your risk as the commercial space can be rented out on a longer lease. The residential spaces can often be converted and extended and the allowed permitted development rights make these slightly easier than standard residential opportunities.
  • Land with Planning Uplift potential – Our experience, knowledge and team of specialist make these opportunities the most existing for us. We can often identify opportunities where others have not been able to and working along side our award winning planning consultants, Whaleback we are actively sourcing these opportunities right now for investment. The added value to property like this can be extremely profitable if done well.
  • Funding Investment – We can offer returns for investments of varying sizes through standard lending agreements, crowdfunding opportunities, joint ventures and other ways you can invest small to start to build up to a larger investment.

We work with you to consider which option is best for your needs and then we get to work on sourcing the right opportunity for you.

We get the most amazing sense of satisfaction helping you achieve financial freedom and our incentivisation is based on the success of the opportunity sourced.

If you having been thinking about a plan for your future, start now, get in touch to learn about our different options and let us help you embark on the journey to financial freedom. Send me a message, email me on Tina@spp.agency or give me a call to discuss how we can help you be free.

Tina Wenham – Target Five Director
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The future is bright, or perhaps a little less dark?

An announcement is expected imminently according to This is Money Magazine from the Royal Institute of Chartered Surveyors (RICS) that it is readying itself to begin valuation on properties again.

Could this mean the housing market will be back up and running again soon? What does this mean for investors, and homeowners?

The inevitable suspension of valuations and house moves due to the social distancing guidelines that were essential to the fight against COVID-19 meant that the housing market all but stopped. This resulted in lenders pulling mortgage deals overnight and subsequently a lack of confidence set in and immediately affected house prices .

A spokeswoman for RICS told the magazine that the return to valuing properties will come with a set of new guidelines for valuers and we suspect it will be a minimised service, but this is good news for the property market.

It is likely that the government advice not to move will remain in place, and the impact on business’ and employment will be significant.

It is unlikely that the market will be a buoyant one, but for us and our investor clients that is no bad thing.

This means we are seeing a number of investment opportunities surface and our local contacts in Brighton, Hove, Worthing and Littlehampton have already started to approach us with excellent off market property investment opportunities. Now is the time to invest and maximise returns. OK, these returns may take longer to show in terms of capital value gain, but our success model of adding value, size or design will means that your money could work harder than ever for you. Even if you don’t want to own an entire property or only have a small amount to invest, we have property investment opportunities for you to invest in. Now is the time to contact us to be involved in our next project.

We are also starting to see some of the darkness lift, our constructions sites are starting to return (safely of course) and our suppliers delivering again which means we will again be able to offer excellent quality accommodation in shared living environments.

All of this means that slowly, steadily but most certainly surely, the future economic picture is looking a little less dark. Actually no, a lot less dark and almost bright.

Tina Wenham – Director of Target Five

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A Blended Approach To Property Investment

Choose your favourite partnership or team. Cagney and Lacey, Torvill and Dean or Scholes and Keane – we all have favourites. Long term property investment needs to be a partnership between holding property and trading property, one for long term income, and one for short term capital growth.

Much is made nowadays on the need to focus – to stick to one thing and do it well. In a previous article, I discussed the need to choose if you are in property – to buy and hold for yield – or in money – to use the property as a trading vehicle to build cash reserves. I also intimated in that article that you should not be fully in one or the other. You need a blended approach. There should however be one central strategy built around one of these, with the other supporting.

To be in property and investing in property, you need money. You may start with money and get into property investment, or you may start with nothing and use property investment to build money up. From there you decide to build a portfolio for income or to continue to trade and make that your core strategy.

The need for a blended approach is both a practical one and a risk-related one. Practically in order to continue to build up a portfolio, there will at some stage be the need to put more capital in. Assuming property investment is what you do well and is your main vehicle to make money, you should then look to use this to build the cash reserves up. Having a blended approach also mitigates risk. No one really knows what will happen post-Covid 19 in the property market. We do not know whether a period of inflation will drive down the value of money and property up, or we will see a market correction or even collapse. Money and property are to an extent a hedge.

The likely outcome is that in the short-term being cash-rich will be good to take advantage of bargains. In the long term, however, it is likely that the fiscal measures the government takes to right the ship, Government Bonds or Quantitative Easing, will result in a devaluation of money. Holding assets in that situation will be beneficial as they will naturally gain value-  if the value is measured in monetary terms!

In my next post I will talk about the need for a layered approach to long term property investment and the importance of creating an inner circle.

At T5 we have two clear strategies – income strategy – high yield property refurbishment and onwards rental and capital return strategy – land planning and development and resale. If you want to know how you can work with us or have any questions get in touch!

Andy Babbayan – Director of Target Five

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Maintaining a healthy pipeline

For a number of different reasons, it is key to our business to plan ahead to ensure we have an appropriate stream of projects coming up.

Our extended teams of contractors need to be kept ‘well fed’, our sister company Sussex Property Partnership needs to forecast and prepare for what properties will become available for let, our clients forecasts and business plans require an element of strategic flow of investment and return options and finally our business plan relies on the income stream from these projects.

It was, therefore, a challenging process during lock-down to maintain a healthy pipeline of projects and purchases to ensure the interruption to this was minimised.

We had to ensure the purchases still made sound investment sense for our clients and continued to meet our targeted yield return figures, despite and change or disruption to the market. This meant we had to negotiate a few of the offer prices and analyse the investment again.

In addition to this we had to ensure that we continued momentum in sourcing new investment opportunities to prepare and mitigate against any lull or break in the projects that could have been a by product of this unprecedented time.

In the end we continued with all but one of our purchasing commitments and have managed to secure some potentially very exciting new opportunities for ourselves and our investors, with many more coming through everyday.

Now that the government guidance has restarted the property market we are working closely with our teams of professionals to progress the matters as quickly as possible to exchange and get started on the refurbishment and redevelopment to realise the returns on our clients investments with as little delay as possible.

We have most certainly hit the ground running and are excited about what the future holds and we look forward to working with our clients to provide sound investment opportunities and aim to hit the target yield returns that our clients are looking for.

If you are interested in hearing about any of our new investment opportunities get in touch.  information@targetfive.co.uk or 01273 525656

Tina Wenham – Target Five Director

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Target Five & Knight Support, Helping the homeless of Brighton & Hove

Our charity partner Knight Support is a great service for the homeless and rough sleepers in Brighton & Hove. We are aiming to offer further support this year and need your help too

“Service to others is the rent you pay for your room here on earth.” Mohammed Ali

The Housing, Communities and Local Government Committee in the UK Parliament today announced the launch of an enquiry into the effect of COVID-19 on homelessness and the private rented sector, designed to review how effective the Government support has been and take a look at the proposed strategies that will be put in place to support the sectors in the long term. They are inviting written evidence for review by 1st May 2020 to ensure that the support is sufficient and continuous after the current measures in place expire.

This made me stop and think. This is a weird, stressful and troubling time for all of us, but just think how different it would be for you if you had nowhere to go, if you were a street sleeper or perhaps in between homes and been sofa surfing.

At Target Five and Sussex Property Partnerships we have had a long standing commitment to give back to our local community and have been working closely over the last 12 month with our charity partner Knight Support. https://www.knightsupport.co.uk/

We previously have held events to support and provide a safe space for the most vulnerable of our community and try and use our contacts, network and business position to help Knight Support. Our Boxing day curry party was a great success. Held in one of our clients empty properties and supported by our contacts making donations, providing food and generally just being an ear to chat. We were intending on continuing these events through the year but of course the social distancing measures have prevented this. We will start these again as soon as we can.

We provide a store free of charge to the service to help keep costs down, the generous donations that people of Sussex provide need to be sorted, distributed and where possible sold. This storage area helps with that huge task. We are hoping to help with more permanent premises for this in the near future.

We provide administration support to founder Lynne Knight and her team, to make sure the applications for grants, funding and general flyers etc can be completed in the most cost effective way.

Just this week we have had ‘virtual’ meetings with Lynne about how we can help further and make sure the street sleepers, homeless or nearly homeless are supported during this worrying time. We are aiming to apply for full charity status and my business partner Andy Babbayan and I are intending on becoming trustees of Knight Support.

For now all we can do is keep supporting in any way and we can and ask you to do the same. If you want to help us support this amazing service, get in touch and we can discuss the best way you can help.                                                      Tina Wenham Director Target Five