8/3/2019 Plymouth - 865 Monthly Cashflow - 30,050 Equity - 25% Discount

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Rare Opportunity Victorian Terrace

5 Minutes Walk to Plymouth City CentrePrime Location

Purchase Price 89,950

Market Valuation 120,000

Superb Value for City Centre Location

25% Instant Equity - 30,050

Gross Cash Flow - 1125 per month

8/3/2019 Plymouth - 865 Monthly Cashflow - 30,050 Equity - 25% Discount

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A Great Property Deal

Its very rare that you have the opportunity to buy a property at this value so close to the city

centre, let alone at a discounted rate 25% from A1 value.

You now have the chance to buy this property at 25% Below Market Value

We have agreed to buy this great little property in Plymouth for 89,950. Thats a fantastic 25%

below realistic estate agent A1 valuation of 120,000. This means you have a built in equity of

30,050.

Superb value for a city property

This presents an ideal investment opportunity for you. It is in a desirable location with strong rental

demand and has built in capital equity of 30,050. The heart of Plymouth is only 5 minutes walk

away. This property will be snapped up for rental by professionals working in the city or as a three

bedroom multi-let.

We managed to reserve this property before it went on the open market and offer it to our investor

group. This puts you in the front of the queue!

This property would easily rent out on a single let AST for between 650 and 700 per calendar

month. Alternatively, we would recommend renting it on a room by room basis, where you would

typically achieve 375 per double room. This house has 3 double rooms and would therefore

accumulate 1125 per calendar month.

Rental Details

Type of rental Monthly Income (pcm) Gross Yield *Gross Monthly Profit

Single AST 660 8.8% 400

3Room Multi-let* 1125 15% 895

*Gross profit based on a 4.6% interest rate on 75% loan to value giving a monthly interest of 260

*Multi-let - work on a basis of 67 per person, per month for bills.

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8/3/2019 Plymouth - 865 Monthly Cashflow - 30,050 Equity - 25% Discount

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Local Area map

The property is situated West of Armada way and North of Union Street. These are two main

thorough fares to the heart of Plymouth City. Drake Circus Shopping Centre is an easy walk and

the University of Plymouth is on the door step. The Theatre Royal and the Barbican night life are

easily accessed from this property.

In the other direction and also walking distance are the open spaces of Victoria Park and Central

park with its sporting facilities. Plymouth Argyle Football Club is only a short bus ride away. It can

be clearly seen that this property sits central to the growing life of Plymouth and therefore is asturdy investment with strong rental potential.

8/3/2019 Plymouth - 865 Monthly Cashflow - 30,050 Equity - 25% Discount

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Market Value

We have identified strong solds in the surrounding streets, which can be seen in the comparable

section. Advice from local estate agents indicates that the valuation appears in line with our market

value expectations.

Mouse Price valuation

121,000Estate Agent A1 Market Value

ShobrooksAnthea (01752 663341) 120,000- 125,000 Connells - Heleney (01752 674467) 125,000 Fullafords Claire (01752 648121) 120,000 - 125,000 Stratton Creber Sian (01752648129) 125,000 - 130,000

Comparables

Frederick Street East runs parallel to Neswick Street.

X

8/3/2019 Plymouth - 865 Monthly Cashflow - 30,050 Equity - 25% Discount

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* Compared to 20, Frederick Street East, 64, Neswick Street is a smaller 2 bedroom terrace. In2010 it required renovation and sold for 77,500. In 2011, 8 months later, it sold for a more

substantial 117,000. All other comparables are 3 bedroom terraces.

20, Frederick Street East is a larger 3 bedroom property and has a higher value which should be

considered when looking at the average sold prices in the area. .

Average sold price including 64, Neswick - 122,300

Average sold price without 64, Neswick - 133,500

Average Price of Properties sold in Plymouth PL1

8/3/2019 Plymouth - 865 Monthly Cashflow - 30,050 Equity - 25% Discount

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Deal Structure

Reservation Fee 1000

Sourcing Fee 3500

Total Fee 4500

Usual Legal Fee 500

Stamp Duty Exempt

Deposit required 25% of 89,950) 22,500

Total Cash Outlay to Purchase 27,500

Discounted Price 89,950

A1 Market Value 120,000

Instant Equity 30,050

Future Forecasts (3% conservative increases)

Equity in 5 Years 34,836

Equity in 10 Years 40,384

Monthly Interest 260

Monthly Rent 1125

Monthly Cash Flow 865

Step 1 Reservation

Step 2 Exchange & Completion

Equity

Cash Flow