For Sale 5 Bed, 5 bath HMO In Middlesbrough Net Returns from 18.50% ! -IMPORTANT ARTICLE 4 UPDATE

98.000 £

Description

Based on our research, we believe that Article 4 is likely to be introduced to Middlesbrough within the next 12-18 months., , In our experience working in similar areas, the introduction of Article 4 dramatically increases the value of compliant HMOs, that have already been converted. In many cases, the uplift in value, as a result of Article 4, can be in excess of £50,000 depending on the size of the property., , This presents you with a fantastic opportunity to invest in the area, whilst we still have time to complete at least one project for you., , For more information on our available projects or the effects of Article 4, please do not hesitate to contact us on., , THE PROPERTY, • A sought-after area with easy access to the University, local amenities and the town centre. Only a 12-minute walk to the University campus and the Student Union bars. The town centre is just a 15-minute walk away., , • Spacious enough to enable a 5-bedroom multi let: all with double rooms and 5 bathrooms, spacious communal kitchen and separate living area., , • Teesside University has over 20,000 students and has a lively student community, ALL RETURNS WHERE APPROPRIATE ARE CALCULATED USING UPDATED HIGHER FORECASTED MORTGAGE RATES. WE ARE ALSO USING CONSERVATIVE PROJECTIONS FOR THE REFINANCE VALAUTIONS., INVESTMENT OPPORTUNITY, , Ayresome Park Road – Middlesbrough, 5 bed, 5-bathroom HMO, , Ayresome Park road - Financial Breakdown – 5 Bedroom – 5 Bathrooms, , Purchase Price: £98,000.00, Deposit : £28,689.50, Conversion/Build: £63,160.80* approx. (subject to further onsite visits), Set up costs/ Design & Build Fees - £14,750.00, Legals Estimate - £1,400.00, Stamp duty - £2,940.00, Survey - £650.00, Furniture and flooring packs can be purchased at an additional cost - £10,256.49, , Total Project Cost: £191,157.29, Total cash outlay - £121,846.79, , Projected Rental Income: £110.00PPPW x 5 net of bills (water, gas, electricity) = £28,600.00 (This is projected rent that allows for a increased energy and increased mortgage interest rates), Management: £4,212 including VAT- (10% fully managed), Mortgage (6 Months) - £1,837.50, , TRUE NET INCOME: £22,550.50 per annum, TRUE NET RETURNS : 18.50%, , NET RETURN ON INVESTMENT AFTER REFINANCE: 31.81%, , BASED ON A REFINANCE VALUATION OF £185,000 WE CAN RELEASE APPROXIMATLEY £148,000.00 BY RE-MORTGAGING AFTER 6 MONTHS. AT THIS STAGE, YOU WILL HAVE AROUND £47,346.79 LEFT IN THE DEAL AND AFTER DEDUCTING THE NEW, INCREASED MORTGAGE INTEREST, YOUR NET INCOME WILL BE AROUND £15,064.00 PER ANNUM GIVING YOU A NET RETURN ON CASH INVESTED OF 31.81%!, , BASED ON REFINANCING APPROXIMATLEY 12 MONTHS AFTER ARTICLE 4 COMES IN THE EFFECT, THE PROPERTY COULD EASILY VALUE AT £225,000.00. BASED ON THIS YOU COULD RELEASE A TOTAL MORTGAGE OF £180,000.00. AT THIS STAGE YOU WILL HAVE ONLY £11,157.00 LEFT IN THE DEAL AND AFTER DEDUCTING THE INCREASED MORTGAGE INTEREST, YOUR NET INCOME WILL BE £13,048.00 GIVING YOU A NET RETURN ON CASH INVESTED IS 116.00%!