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
We are definitely having a Happy Friday vibe today at T5 HQ. We have had planning approved for our next development in George Street, Hove, on behalf of our longstanding investor.⠀
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Planning granted, is a commercial to residential from class E commercial unit to class G.⠀with thanks to @whaleback.ltd
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Our Plan:
To form a 7 bed coliving Sui Generis HMO above and retain the ground floor commercial unit, which we have already had lots of enquiries about already ⠀
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Watch out for our upcoming development build updates.⠀
Some further good news we have received today, as we round off a very bsuy week, we have completed on our new mixed use development property, Tarring Road, Worthing.⠀
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Currently a ground floor shop with a 3 bed flat above.⠀
Our Plan:⠀
To convert the uppers to a coliving 5 bedroom HMO and retain the shop. There is also potential for future development to the rear STNC.⠀
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We will keep you up to date as this property is developed.⠀
Yesterday we exchanged on Broadwater Road, Worthing, a property we sourced and secured for our returning investor client. This property came with plenty of challenges throughout the conveyancing period, one of which was Japanese Knotweed!! but with the Target Five team on hand this was another issue we were able to overcome, along with the perseverance of our associates @starpropertyuk the sellers, we were both able to get the property over the line.
The property is a freehold mixed use property, comprising of a vacant ground floor commercial premises with a large flat above, with an extensive rear garden accessed via a road to the rear offering development potential (STPC).
With the Japanese Knotweed treatment plan in action and our planning application in here’s our brief for the property:
– Retain and refurbish the commercial unit
– To the rear we hope to extend and create a separate 1/2 bed garden apartment STPC
– Upstairs we will be creating a 4 bed coliving HMO
We will of course keep you up to date with how we progress with this project.
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.
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!
Target Five’s property journey began back in 2013 in our home town of Brighton & Hove. Knowing your area, the streets, the cost of property & how rentable the area was invaluable.
If you’re considering investing in property then understanding what makes an area attractive to your potential residents is worth knowing! we look at the following;
– Property layout, size & position, development opportunity whether immediately or future (especially for commercial development).
– Good transport links. This is one key factor that draws renters of any age. Did you know that 76% of tenants wouldn’t buy their own property if it meant giving up their short commute times!
– Large infrastructure projects, look out for areas with big renovations & regeneration projects, signifying growth & demand for housing is likely to spike as workers seek employment.
– Local amenities, who doesn’t want to be next to a fab Waitrose but this is quite key, especially for areas such as Brighton where a number of people don’t own their own transport, especially students.
– Employment opportunities, if a large company is looking to move to the area or looking to expand, this will drive up the demand for properties as well as prices.
Wherever you decide to invest do your research, make sure you get in early before an area becomes saturated. We have a pipeline of genuine investment opportunities you may wish to consider. Get in touch to find out more by emailing information@targetfive.co.uk
