This mixed use property, consists of a commercial unit on the ground floor, which was recently used as a cafe with a 2 bed maisonette above.⠀⠀⠀⠀
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We have converted the maisonette from a 2 bed, 1.5 bathroom, to a 3 bed with 2.5 bathrooms. By repurposing the kitchen to a bedroom with a separate open plan kitchen/living space.⠀⠀
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Things have been so busy we forgot to share the furnished and professional photos! with thanks to @pro.pro.photography⠀
Featuring in February’s Property Investor News magazine
Target Five Director; Tina Wenham and our JV Partner Rachelle of @cseeinvestments feature in this month’s Property Investor News magazine. The article focuses on our current commercial development to a Holiday Let, in central Brighton.
To read the full article, head over to the PIN website now https://property-investor-news.com/ hard copies out now! ?
With thanks to @property.investor.news for a fantastic interview and allowing us to share our experience with you and your readers
Hosted by , Mark S Barrett from The Property Brokerage, this month it gives me the absolute pleasure to welcome Target Five’s Andy Babbayan who will share insight and inspiration on all things property conversion.
In this podcast we review Andy’s award-winning commercial conversion where he shares how he sourced, stacked, built and refinanced out a commercial mixed-use site leaving none of his own money in and cash flowing over £35,000 per annum.
If you want to understand how to get your award-winning commercial conversion this is one Podcast you do not want to miss. ??????? 055 – ?????? ???, ???? ???? ?????? ??? ??? ??? ?????.. https://buff.ly/3qLk2AO (COPY AND PASTE LINK INTO YOUR BROWSER).
Our latest Littlehampton project is underway. This mixed use property, consists of a commercial unit on the ground floor, which was recently used as a cafe with a 2 bed maisonette above.⠀
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Target Five’s plan is to convert the ground floor commercial into a one bed apartment (plans currently being drawn up by our Architect. The maisonette above will be developed from a 2 bed, 1.5 bathroom, to a 3 bed with 2.5 bathrooms. By repurposing the kitchen to a bedroom with a separate open plan kitchen/living space.⠀
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Our builders are onsite and have started the rip out, which is casuing a bit of a headache already as they have identified condensation spores, as there are no damp proof membranes, in fact we have daylight through the slate roof tiles! so a re-roof is in order.⠀
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We will keep you up to date as this development progresses.
The figures are in on our most recent development, Bayford Road, Littlehampton.
We started our Bayford Road project in February and completed at the end of June and is now fully let!
The period terraced property was originally 5 bed, spread over 3 floors, which needed to be totally gutted. In doing so we were lucky enough to uncover exposed brickwork to all chimney breasts and brickwork to the hallway, incorporating this into the design theme for feature walls.
We have created an 8 bed HMO with 7 bathrooms, designed for professional sharers.
Purchase Price £220,000
Build Costs £150,000
Refinance £555,000
Rental Income £56,640
ROI 35.6%
Gross Yield 10.2%
We have very happy investors and even happier residents!
I have heard a lot about people moving away from HMOs due to the risk. I understand it – many places are over concentrated in therefore occupancies and refinance valuations have dropped. This is something we saw in Brighton – the student market became saturated and rents and occupancy dropped.
Does this make them bad investments? It depends on you and your product. Are they hard work – yes, is there more regulation – yes, is the competition fierce – yes. So if you are looking for an easy hands off investment, where occupancy will always be constant and you will not need to reinvest in your asset then HMOs are not for you.
If, like us you are professional landlords and developers, happy to put in the work and actually enjoy the experience of creating nice places to live that is relevant to the market and prepared to reinvest and reconfigure assets so that they remain relevant – then they are great investments – AS PART OF A BALANCED PORTFOLIO. Do I just own HMOs, no.
Do I continue to buy them, yes! HMOs are moving on, the trend is with Coliving – shared living by choice, with much more consideration to the quality and practicality of the property to reflect the needs of the market. HMOs are here to stay, it is not that people only stay in them out of necessity but that they now do so out of choice, better for many that than a lonely studio flat or bedsit.
SO there is a market and they do work IF you do it right and CONTINUE to do it right. Do not oppose regulation, it is usually done to improve standards and protect both landlords and tenants. Embrace it and even encourage it, get ahead of the wave, become a thought leader and get involved in the conversation.
After a tense and very busy 2 weeks, we have another property over the line!
Yesterday we exchanged and completed on this former Barclays bank located on the High Street, Littlehampton. Originally the property was sold at auction but the buyers were unable to complete, we bit the bullet and jumped in on this exciting development opportunity at very short notice.
As you can see from the floor plans* this is a BIG opportunity, we are looking at developing 2 HMO’S above, retaining and refurbishing the commercial element and potentially looking at the additional land.
We will keep you updated as we progress with this project.
*please note the floorplans are for size reference only and are not our chose interior layout.
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No one likes to pull out of a deal or to change plans. It makes people doubt you and can make you doubt yourself! But this is business and we are living in turbulent times. Things are changing daily. Build costs are spiraling, stamp duty holidays are ending and no two experts can agree on where the market is heading.⠀
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On one hand I love to stick to a plan but we ourselves are becoming more and more agile. You may plan to hold an asset long term but then get a great offer! If you have a good use for that money then sell! If you need to vary planning to increase value or reduce cost, then do it. If you need to switch contractors to see out a project, then do it. Fortune favours the brave and it certainly does not favour the stubborn! ⠀
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We reassess every project every week, from things in the pipeline to things up for sale or refinance. From the British Army Estimate 7 Questions – Has the situation changed? If yes in any way you need to reassess the plan!⠀
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How have you pivoted this year?⠀
We have done it, finally! our George Street project is over the line. Following numerous challenges and design changes, which caused a few delays.
Originally our plan was to convert this mixed use property, which was once a former banking hall, with x2 commercial units and residential above, to x2 commercial units with 4 studio apartments above. This changed midway through to creating x2 twodio apartments and x2 1 bed apartments.
We chose a monochrome interior design theme, which again was adapted to incorporate a splash of yellow to liven the rooms up. We have also used black brick slips, which have a strip light that doubles up as a bedside reading light as well as highlighting the feature wall and wallpaper.
With a special thanks to @brightonrenovationsltd for their hard work, patience and resilience.
The property is now available to let to professional sharers via our partners @proletsuk.
Fingers crossed for the property valuation, which we should have good news on soon!
What do you think, do you have a favourite feature?
We started our Bayford Road project in February, which has been completed in the past couple of weeks, after a few little delays.
The period terraced property was originally 5 bed, spread over 3 floors, which needed to be totally gutted. In doing so we were lucky enough to uncover exposed brickwork to all chimney breasts and brickwork to the hallway, incorporating this into the design theme for feature walls.
We have created an 8 bed HMO with 7 bathrooms, designed for professional sharers. With thanks to @brightonrenovationsltd for all of their hard work in creating our favourite project so far!
Our friends @nichecom_uk have sent over the professional pics, which look fab! The property is now on the rental market with our partner company @proletsuk, with 3 rooms snapped up on the first day of viewings!
