NEWCASTLE CITY CENTRE PROPERTY WITH 36.77% NET YIELD

INVESTMENT OPPORTUNITY

Warrington Road– Newcastle Upon Tyne
5 bed, 5-bathroom HMO
Warrington Road - Financial Breakdown – 5 Bedroom – 5 Bathrooms
Purchase Price: £165,000.00
Deposit: £48,303.75 (includes 6 months interest for bridging loan)
Conversion/Build: £76,816.68 * approx. (subject to further onsite visits)
Set up costs/ Design & Build Fees - £15,500.00
Legals Estimate - £1,400.00
Stamp duty - £8,250.00
Survey - £650.00
Furniture and flooring packs can be purchased at an additional cost - £12,154.49
Total Project Cost: £286,824.92 (includes 6 months interest for bridging loan)
Total Cash Outlay: £163,074.92 (includes 6 months interest for bridging loan)
Projected Rental Income: £120.00 PPPW net of bills (water, gas, electricity) x 5 = £31,200 per annum
Management: £4,524.00 including VAT - (10% fully managed)
Net Income: £26,676.00
NET RETURN ON INVESTMENT AFTER REFINANCE: 36.77%
BASED ON A REFINANCE VALUATION OF £310,000.00 WE CAN RELEASE APPROXIMATELY £248,000.00 BY RE-MORTGAGING AFTER 6 MONTHS. AT THIS STAGE, YOU WILL HAVE AROUND £38,824.92 LEFT IN THE DEAL AND AFTER DEDUCTING THE NEW, INCREASED MORTGAGE INTEREST, YOUR NET INCOME WILL BE AROUND £14,276.00 PER ANNUM GIVING YOU A NET RETURN ON CASH INVESTED OF 36.77%.

CHOOSE NEWCASTLE UPON TYNE: GREAT VALUE FOR MONEY: EXCELLENT POTENTIAL GROWTH RATE: FANTASTIC RETURNS

• Proximity to Major Employers: Located within easy reach of major employers like the NHS, tech startups, and corporate offices in Newcastle's city centre, making it ideal for professionals working in the area.
• Strong Yield Potential: With Newcastle's robust rental market, this property offers the potential for a high yield, thanks to its size, central location, and appeal to both students and professionals.
• Excellent Transport Links: Close to Newcastle Central Station, metro services, and major bus routes, ensuring easy connectivity for tenants commuting within the city or further afield.
• Close to Amenities: Situated near popular restaurants, shops, and entertainment venues, including Eldon Square and the vibrant Quayside, appealing to the social lifestyle of young tenants.
• Growing Demand from Students: Newcastle’s increasing student population—currently over 50,000 spread across two major Universities and one school of medicine —ensures a thriving rental market for well-located properties.
• Future Development Opportunities: Benefit from Newcastle’s ongoing regeneration projects, enhancing property values and infrastructure around the city.

THE FINISHED PRODUCT
• New inspire landlord thermostatic system can be fitted to control the usage of the properties central heating which will help with the significant rise in energy prices and keep the bills affordable for the landlord. Savings can be up to £1000 a year.
• Will be refurbished to the highest standard and contain all the everyday necessities within the furniture pack including a washing machine, vacuum cleaner, and microwave.
• All rooms will be rented at £140.00 (ensuite) per person per week.
• Will be supplied, fully regulated and compliant with the local council following inspection on completion of the building work with all necessary approvals.
• Every property has interlinked smoke alarms in all rooms, emergency lighting systems, appropriate fire panels and heat sensors.