Tag: #propertyblog

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EXCHANGED – BROADWATER ROAD, WORTHING

Post author By Shelley Hollis
Post date August 27, 2021

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.

Tags #coliving, #investnow, #landlord, #landlords, #professionallet, #propertyblog, #propertydeveloper, #propertyinvestmentuk, #propertyinvestor, #propertyinvestors, #propertyrenovation, #propertysourcing, #ukpropertyinvestment

Blog

BAYFORD ROAD – SUCCESSFUL ROI

Post author By Shelley Hollis
Post date August 2, 2021

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!

Tags #buytolet, #coliving, #investmentplan, #investnow, #landlord, #landlords, #professionallet, #propertyblog, #propertydeveloper, #propertyinvestmentuk, #propertyinvestor, #propertyinvestors, #ukpropertyinvestment

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HMO’S ARE THEY RISKY?

Post author By Shelley Hollis
Post date July 26, 2021

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.

Tags #buytolet, #coliving, #investmentplan, #investmentstrategies, #investnow, #landlord, #landlords, #professionallet, #propertyblog, #propertydeveloper, #propertyinvestmentuk, #propertyinvestor, #studentaccommodation, #ukpropertyinvestment

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INTRODUCING OUR NEW LITTLEHAMPTON PROJECT

Post author By Shelley Hollis
Post date July 6, 2021

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.

Tags #buytolet, #coliving, #landlord, #propertyblog, #propertydeveloper, #propertyinvestor, #propertyinvestors, #propertyrenovation, #propertysourcing

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WHY PIVOT?

Post author By Shelley Hollis
Post date July 5, 2021

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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?⠀

Tags #brightonpropertyblog, #buytolet, #investnow, #landlord, #propertyblog, #propertyinvestmentuk, #propertyinvestor

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INTRODUCING OUR NEW LANCING PROJECT

Post author By Shelley Hollis
Post date June 18, 2021

We have just exchanged on another fantastic development opportunity with completion due in 2 weeks.

Located in Lancing, East Sussex; this 1950’s mixed use 2 storey property consists of a ground floor commercial unit used most recently as a bakery, with a large one bed maisonette above.

Our plan is to renovate the commercial unit on the ground floor with an open plan kitchen, store and WC. Create a 1 x 2 bed apartment and a 1 x 5 bed HMO.

Tags #investnow, #landlord, #propertyblog, #propertydeveloper, #propertyinvestmentuk, #propertyinvestor, #propertyinvestors, #propertyrenovation

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FEELING THE PINCH WITH CONVEYANCING DELAYS

Post author By Shelley Hollis
Post date June 11, 2021

Is anyone else feeling the pinch when it comes to delays around the process to buy property at the moment?

We have really felt a delay in the process of buying projects recently & have taken a look to see how we can address this & is there anything we can do to mitigate the delays. As the old adage goes; time = money & therefore we have to try & reduce the time things are taking.

Why are things taking longer;

The increased transactions across the market caused by the looming end to the stamp duty holiday has meant solicitors are working at maximum capacity & inevitably therefore things will take longer to be dealt with.
Funding delays – traditional lending is still very cautious & the legal due diligence is extensive & can take as long as the legal process to buy.
It’s never simple – this is very specific to us but would probably apply to most investors/developers – the very nature of what we buy is complicated. It’s how we add value, we solve problems & create value where others perhaps could not & this therefore requires a keen & detailed look at the title, covenants & other important legal factors to do with the property.

So what can we all do to help things along?

Have a key team of people around you, we work with two legal teams well known to us & who know how we do things. Nazish Ahmad at Jury O’Shea solicitors & Justin Thompson at Thompson Allen, this means they have a lot of our ID’s etc already & know what they are looking for us straight away. This saves lots of time.

Funding – Be ready & choose your route early, this will save you time & money in the long run.

Be tenacious, always ask what you can do to help your teams & be kind to them, it will go a very long way to making sure you are top of their list to deal with.

Tags #brightonpropertyblog, #investmentplan, #investmentstrategies, #landlord, #landlords, #propertyblog, #propertyinvestmentuk, #propertyinvestor, #propertyinvestors, #ukpropertyinvestment

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INTRODUCING OUR NEW BOGNOR REGIS PROPERTY

Post author By Shelley Hollis
Post date June 8, 2021

On Friday we exchanged contracts on this big unit in Bognor Regis, which is located on the beautiful seafront. We are so excited to get started and show everyone the plans/updates of this commercial to residential development.⠀
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First thing’s first, we need to get planning over the line! ⠀
We hope to share more on this development soon- stay tuned.⠀
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Can you guess what our plans might be?⠀

Tags #landlord, #propertyblog, #propertydeveloper, #propertyinvestmentuk, #propertyinvestors

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INTRODUCING OUR NEW BRIGHTON PROJECT

Post author By Shelley Hollis
Post date June 8, 2021

We have just exchanged on another fantastic property, located in central Brighton on the Old Steine.⠀
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We are due to complete on this property on the 25th June, watch this space for our plans for this development, as we await confirmation of our planning application. The property is currently used as offices.

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Tags #investmentplan, #investnow, #propertyblog, #propertydeveloper, #propertyinvestmentuk, #propertyinvestor

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CROSSING THE DESERT

Post author By Shelley Hollis
Post date June 8, 2021

I love the term ‘Crossing the Desert’, something I have shamelessly pinched from Daniel Hill from @propertyentrepreneur_⠀
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Many of us at T5 are Property Entrepreneur graduates and have nothing but positive things to say about that experience and methodology. ‘Crossing the Desert’ was Dan’s Headline Strategy for his company Group a few years ago as they went through the experience of rapid growth – it described the feeling of moving between two places of safety and the experience of doing so often scarce on resources.⠀
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We are there now. More staff, more projects, more complexity and all the cash flow challenges that come with that. It all looks wonderful on the spreadsheet but day to day it’s tough. So how do we get through it and how did Dan?⠀
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Leadership, Teamwork and constant Communication (plus a little sprinkle of Faith!!). It is my role along with Tina Wenham, to keep reaffirming the vision, keeping the focus and being considerate and understanding with the challenges the team face.⠀
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So where are we now? We can see some green above the heat haze of the horizon and we are now certain it is not a mirage! We just need to hold together and keep our pace and we will be there sooner than we think.⠀
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Does anyone else have this experience or like this analogy?!⠀
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Get in touch!⠀

Tags #landlord, #propertyblog, #propertydeveloper, #propertyinvestmentuk, #propertyinvestor, #wealthbuilding101