PM SPV 68

2 Bedroom, Mid-Terrace Property

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Deal Size £49,080
Investors 189
Funded 100%
Invested £49,080

About this property

  • 2 Bed Terrace house located in West Auckland, County Durham
  • Due to undergo a full interior renovation, including work on minor dampness, quoted at £4,300, which is included in the fund amount
  • Property has been secured at £34,000. With renovation works, this reflects a 33.96% discount to the RICS valuation

The property is a generous sized terrace that comprises of a reception area, hallway, kitchen and family bathroom located on the ground floor with two considerable sized bedrooms on the first floor. The property is due to be renovated to meet the current market standard as part of this project. The renovation work includes a new fully fitted kitchen, full damp proof course, carpets & decoration throughout and we have received written quotes for £4,300 for the work which is expected to complete within 4 weeks of purchase. Once the property is renovated to our standards, we expect the property to become occupied fairly quickly at a monthly sum of £425.

The property is located in the heart of West Auckland with access to a number of local amenities such as local shops, schools and pubs. Being exposed to an access to public transport, travelling within County Durham is made much easier with the closest bus stop being within a two-minute walk from the property.

A RICS survey carried out on 11th November 2016 values the property at £58,000 after the renovation works, which equates to the property being purchased at a discount of 33.96% inclusive of the renovation costs.

The Royal Institute of Chartered Surveyors have predicted a 3% property price increase for the North East which is used in our projected return calculations. You can see more information on our blog post HERE but please remember that property prices can go down as well as up.

There is an additional ‘Acquisition cost’ (shown as 'Furniture cost') which represents a finance fee paid to PMF A Ltd and PMF B Ltd, and property management disbursements (auction fee, inventory, checkout, inspection, visit). This structure can provide access to new routes of property sourcing at large discounts. In addition, a monthly Accounting Fee and Corporate Governance fee of £25 and £20 respectively has been factored into the rental yield calculation (this is shown as an annual 'Service Charge' cost and represents £480 of the total).

Please bear with us while we update the names of these fields on the website. To confirm, the projected returns are net of these fees. There is no British Gas utility cover on this property, and the insurance cost of £289.21 per annum reflects the landlord insurance, which is put in place on all investments and also now benefits from a rent recovery option in the unlikely instance that a tenant may withhold payment of rent.

About the area

County Durham is an area which is experiencing investment, growth and prosperity. Companies such as Hydram Engineering, who call the likes of JCB and Mitsubishi Electric customers, already employ over 200 people in the region, plan to invest an extra £2 million in the company in this financial year. This aligns with the growth of other sectors such as ResQ, the call centre which is expanding into the Spectrum Business Park to add an additional 1,200 employment opportunities to the current 670 positions they have.

The region is also home to growing technology businesses such as , the first exclusively digital bank that has chosen the North East as the new headquarters for the company and aim to host 400 employees in the area by 2020. With a recent investment of £45 million from Spanish banking group, BBVA, it is improving the fintech opportunities for future generations and is already creating synergies with Durham University by giving students the opportunity to work for the company. Due to the job opportunities available, it comes with little surprise that the North East is a popular choice for students, as evidenced by Durham University topping a student quality of life survey in 2013.

Following the Chancellor’s 2016 budget, there is also a clear emphasis on narrowing the North and South divide by investing £20 million in the Northern Powerhouse schools in an effort to ensure a prosperous future for the next generation, as well as investing in the main transport routes which connect the North East, to the South, including the A66 and A69- bridging the gap between the North and South.