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Blog

BLOOMSBURY PLACE – SUCCESSFUL ROI

Another of our most recent projects has delivered the numbers for our investor.

This listed property is located in the heart of Kemp Town Village, Brighton was sourced, designed and developed by Target Five. The works consisted of converting the existing 2 bedroom maisonette, to create 3 bedrooms and a new shower room on the 3rd floor.

Property Purchase Price: £200,000
Build Cost: £50,000
Furniture: £6,000
Rental Income: £375,000
ROI PA: 12%
or combined YR 1: 56%

Valuation Day
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. ⠀⠀
Not a bad return for adding a bedroom and shower room!

Interested in working with T5, or finding out more, please email information@targetfive.co.uk

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Blog

EASTERN ROAD – SUCCESSFUL ROI

EASTERN ROAD, BRIGHTON –

This particular property was originally a two bedroom first floor, large maisonette, located in Kemp Town, Brighton. Sourced, designed and renovated to a six bed/2 bath HMO with a loft conversion by Target Five, which now offers a great rental yield return for our returning investor. ⠀

Property Purchase Price: £285,000
Build: £73,000
Furniture: £5,000
Refinance: £575,000
Rental Income: £43,000
ROI PA: £12%
or combined YR 1 70%

Valuation Day? ⠀
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. ⠀⠀
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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.⠀⠀

Interested in working with T5, or to find out more email information@targetfive.co.uk

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Blog

ETHICS & TRANSPARENCY WITH INVESTORS

This is really aligned with win-win and is a cultural thing. Investors are partners, they are critical to your business, but rather than being schmoozed and flattered, they need to be dealt with as business people. With respect and with transparency.

I have always believed in a consultative approach to sales. I am not a salesman, but I am good at sales. I just tell it like it is, relate it to the client and demonstrate to them how it is a solution for their requirement. In order to do this correctly you need to be absolutely straight. I have not always been as straight. When I started off I tried too hard to make things seem better than they are – and it never ever worked! Sure the deals worked, but not as they expected, which is what they remember.

At T5 we are lucky – we have made that luck and sweated for it, but we are in a fortunate position. We are oversubscribed almost all of the time. How have we got there? By treating our investors as equals, this means being nice but not too nice but especially it means being respectful. Almost all our business comes through referral and recommendation. This is the ultimate vote of confidence.

We will soon be looking for more funding and it’s different to what we have done before. How will we do it? By engaging with people, educating them and treating them with respect. It takes longer at first but it will pay dividends! (TOP PUN ALERT).

– Andy Babbayan

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Blog

OUR 2020 HIGHLIGHTS

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It’s been a trying year for all but we are thankful that we were able to achieve so much and cross off a lot from our to do list for the year. Lockdown 1 put us under a bit of strain trying to continue as best we could on skeleton staff and on our renovation project sites, obtaining supplies/orders being the biggest aggravation but we persevered! ⠀

The Lockdown allowed us to ‘ramp up’ our plans that we had for 2020 and bring forward some of our ideas/initiatives, which we were planning to do over the course of the year but we decided to seize the day and get these done. Here’s a short list of what we have managed to implement:⠀

➕ Systemise our practices and procedures, creating and developing our own in house CRM software system⠀
➕ Development and exposure of Target Five on Social Media⠀
➕ Staff undertaking The Property Entrepreneur year long training course⠀
➕ D2V implementation on a large scale⠀
➕ Developed and gone live with our new website⠀
➕ Increased the T5 team ⠀
➕ Forged new partnerships with specialist professionals incl; solicitors, planning officers, architects, building control and construction/development finance brokers⠀
➕ Onboarding with new investors/JV investors ⠀
➕ Completed 11 renovation projects, seeing great returns for our investors⠀
➕ Successfully funded our first crowdfund project ⠀
➕ Won the Best Investment and Development Company – East Sussex award ⠀

We are excited for 2021 and the opportunities we are securing, remaining focused, committed and motivated.

Categories
Blog

Assessing a site – how we do it

This is in no way designed as a quick short cut to what is, in many ways, the hardest element of property development. It is certainly where a lot of mistakes are made and ones that are often then realised very slowly and tortuously.⠀

Key considerations – hardly breaking ground but…⠀
➕GDV and ease of sale/ refinance (location consideration).⠀
➕Purchase Price⠀
➕Additional costs and taxes⠀
➕ALL In Refurbishment cost⠀
➕Finance Costs⠀
➕Profit⠀

AND⠀
➕Look and feel of the project.⠀

We have spreadsheets and checklists for all of the above. We are constantly amending them to represent latest costs and values / square footage.⠀

The last bit is VITAL – does it feel like a project that fits within your broader strategy and plan. This isn’t just about size but also about what it will look like, will it improve your brand and increase your experience base. The ADD to the ADD.

– Andy Babbayan; Target Five Group Managing Partner & Acquisitions Director

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Blog

BEST PROPERTY INVESTMENT & DEVELOPMENT COMPANY IN EAST SUSSEX

BUILD Magazine’s Real Estate Property Awards have chosen Target Five Property Consultants as winner of The Best Investment & Development Company – East Sussex.⠀

After the year 2020 has been for all and our team it’s great to receive recognition and an award (which is still being produced ?).⠀

This award goes to show hard work and tenacity pays off even during a pandemic!. We couldn’t have done it without the T5 team effort and support from @ccrdryliningltd @focus_brighton @brightonrenovations @bpmarchitecturalservices and of course @whaleback.ltd ?⠀

You can find out more about BUILD magazine and the other award winners here https://buff.ly/3gc7sog⠀

We’re Target Five, experienced property consultants in Brighton & Hove. ⁣⁣⠀⠀
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Our services include:⁣⁣⠀⠀
? Property investment, sourcing and development⁣⁣⠀⠀
? High yield buy to let portfolio building⁣⁣⠀⠀
? Land development and planning gain⁣⁣⠀⠀
? Property consultancy, income improvement and HMO advice⁣⁣⠀⠀
? Fixed return investment⁣⁣⠀⠀

Want to find out more about property investment and working with T5, get in touch: information@targetfive.co.uk

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Projects Completed

BLOOMSBURY PLACE, BRIGHTON

1 year and 5 months later and we have finished!! This property has been a real labour of love for our investor and the Target Five team. Originally purchased in June 2019, We have hit every obstruction possible on this property to date, you name it we have had it, here’s a small and not exhausitive list: –

– missing freeholders
– managing agent issues
– structural issues
– roof issues
– lease extension issues
– planning issues
– listed buildings consent issues
– dealing with other leaseholders
– access to site issues
– Oh & a global pandemic

We have finally got there and are excited to show you the final finish. The property is located in the fabulous Kemp Town area of Brighton, moments from the seafront. Our original plan for the property had a major edit due to the above issues, the renovation works undertaken were changing the property from a 2 to a 3 bed with a separate kitchen and living room finished to a high end specification. Being a listed building we wanted to keep the interior design sympathetic to its origin but still maintain a modern feel for our residents, we are really proud of the completed property.

An added bonus was that the property let with our sister company Sussex Property Partnership within a few days! achieving £1836pcm.

Purchase Price: £210,000
Build Costs: £50,000
Property Now Valued at: £375,000

Categories
Blog

WEST BUILDINGS, WORTHING – SITE UPDATE

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We are a few weeks into our West Buildings project located in Worthing, West Sussex. Target Five’s Project Manager Tim, popped to site this morning to give us a brief update.⠀

Good news that the first fix of the HMO residential space is nearly complete, with a couple of rooms about to start the 2nd fix/carpentry.⠀

We are so excited to be able to retain a lot of the original brickwork in the upstairs residential portion of the building, which will work so well with designs chosen for the interiors

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We plan to turn the upper part of the building into a 2-bed flat and the lower part into an HMO-style 3 bed flat, all of which can be accomplished under Permitted Development. The ground floor commercial unit will be retained. ⠀⠀

We hope to complete this property in early Feb 2021, we will keep you updated with progress throughout the renovations ⠀

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Blog

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!⠀