We are excited to present a unique investment opportunity in suburban East London, involving the development of five high-quality flats. Our investment strategy is based on two key approaches: buy-to-develop-and-sell and buy-to-develop-refinance-and-rent. Here’s how this deal fits within our strategy framework:
Strategy 1: Buy to Develop and Sell
Our primary goal with this strategy is to achieve a return greater than 10% within 12 months. Although this particular deal offers a strong return of 9.71%, it falls slightly short of our 10% target. This suggests that while the deal is profitable, it doesn’t fully align with our criteria for immediate resale.
Strategy 2: Buy to Develop, Refinance, and Rent
This strategy aims to enhance our property portfolio by developing properties, refinancing them to release equity, and then renting them out to generate steady income. For this strategy, we typically aim to pull out at least 70% of our invested capital upon refinancing. In this case:
- Total Investment: £3,473,146
- Maximum Loan upon Refinancing: £1,125,714 (32.4% of total investment)
- Monthly Rental Income: £9,850
- Annual Net Profit: £20,248
While we are unable to pull out 70% of our invested capital, this project still aligns with our strategy by providing positive cash flow and adding substantial value to our portfolio through high-quality rental units. With a robust annual rental income and a net profit of £20,248, this investment will strengthen our asset base and contribute to long-term portfolio growth.
Summary
- Development of 5 Flats in Suburban East London
- Initial Investment: £3,473,146
- Sale Price (if sold): £3,615,000
- Annual Rental Income: £118,200
- Positive Cash Flow: £1,687.31 monthly
This investment is perfect for those looking to diversify their portfolio with high-quality rental properties that promise steady income and long-term value appreciation.
Contact me on +447907712361 or kabir@amicproperty.com to find out more.