Spacious two bedroom lower ground floor flat,
located on South Norwood High Street, just 2 minutes away from Norwood Junction
train station with excellent links to central London. The flat consists of a spacious
lounge, two good sized bedrooms, fitted kitchen, bathroom and a private
Bedroom Lower Ground Floor Flat
Lounge: 21'5" x 12'7" (6.53m x 3.84m)
Kitchen: 12'7" x 7'6" (3.84m x 2.29m)
Bedroom One: 12'7" x 9'5" (3.84m x 2.87m)
Bedroom Two: 16'0" x 10'11" (4.88m x 3.33m)
Bathroom: 8'10" x 6'10" (2.69m x 2.08m)
The property will be purchased with the current tenants, let
on an AST since 6/12/2017 for £1100 pcm. Therefore investors shall start
receiving rental income immediately after legal formalities are completed. The lease has approx. 67 years remaining.
Prior to the end of the term, there is also a possibility of applying for an extension to the lease and easily creating an additional bedroom (to make it into a 3 bedroom flat) as well as upgrading the property before sale in the future. Please read the Investment Pack for more details. The projected sale price is not based on this.
The property was previously sold for £170,000 at auction on 14/7/2017.
Why South Norwood?
Explaining why the area has become something of a property
hot spot over the past few years, a spokesman for Townends estate agents said:
"South Norwood is a popular location for families, first-time buyers and
commuters, which means there is a fantastic mix of individuals who make up the
vibrant local community.
"It's still one of the best value-for-money locations
in the South East of England, and it's attractive to buyers as there are many
excellent transport options in the area."
Also, the property is only a 10-minute drive to the proposed
£1.4 bn Westfield Centre in Croydon, which will massively transform Croydon
town centre. We are also expecting local property prices to rise significantly.
Purchase price £176000
Acquisition costs (*) £8800
Contingency fund £1500
PTC listing fee (5%) £9300
Total fundraise £195600
(*) Acquisition Costs
Stamp duty £6300
Legal Fees £
Survey/Valuation Fees £
Accountancy Fees £
Photography/floor plans £
SPV set-up £
Total acquisition costs £8800
Projected Sale Proceeds
Sale price £235,000
Rental income 3 years £39,600
Cost of purchase £195600
Agent’s Management fee £4,752
Agent’s commission (sale) £4,230
Accountancy fee (years 2 & 3) £1,400
Total Costs £205982
Company tax £13037
Projected net gain on sale £55581
PTC exit fee £8337
Net profit to shareholders £47243
Projected net ROI (3 years) 24.2
Projected NET return on investment (ROI) – 24.2%
If you have a question about this property, please click below and submit a question to us directly.
Log In to ask a question