Overview
- Updated On:
- October 9, 2024
Description
We secured a dated four bedroom house in 2016 and converted it into a modern 7-bedroom sui-generis HMO with all ensuites and communal kitchen , living room and garden.
View from front of the property – beginning and on completion.
Financial summary
| Purchase price | £440k |
| Build costs | £400k |
| Stamp duty & Professional fees | £40k |
| Finance costs | £60k |
| GDV | £1.15 Million |
Type of project: A ground up development of a single detached three bedroom dwelling house.
Ownership is held by a Special Purchase Vehicle (SPV): Chopra Property group.
Duration: January 2022 till now
We have secured planning permission for a three bedroom detached house in Caversham. At present this is a private car park for our HMO tenants at 58 Prospect street, Reading RG4 8JN.
Funding structure: A combination of our own and private investor funds for the build.
Financial summary: We invested £90,000 cash each for 50% share in the project.
Valuation: The Gross Development Value(GDV) is £1.15 Million following a R.I.C.S valuation survey.
Refinanced: We secured a buy-to-let loan of £840k from Aldermore at 3.58% fixed for 5 years. Monthly interest payment is £2543.
Rental summary: Gross monthly rent is £4550, (ground floor flats at £1100, top floor flats at £1175 on average), net cashflow after management costs £400, maintenance, insurance) is £1600 p.m.
Cash left in the project: £45K each (50% of investment).
Return on cash left in the deal: 19.2% per annum.
- Principal and Interest
- Property Tax
- HOA fee
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