23/12/2022
Here are the numbers for our Wellington Square project:
Purchase price: £245,000
Renovation costs: £157,000
Estate agent & broker costs: £22,000
Solicitor fee's in/out: £6,000
Lost bridging fee's (first time): £5,000
Architect building warrent & amendment fee's: £2,000
GDV/home reports:
Townhouse: £425,000
1 bed: £100,000
Total: £525,000
Sale price: £550,000
For this project, we put £50k in. Private investment made up the remainder of the purchase price and conversion costs.
We were able to offer 15% return on the acquisition loan and 8% return for the conversion costs loan.
As a company, if the numbers work, we are more than happy to give away high returns in the hope that our investors want to go again and again with us on the right projects.
As we were converting from commercial to residential, will also receive back 15% of any vat paid for materials throughout that project which equates to thousands, something to consider if ever taking a project on like this as its a good saving 😁.
We faced quite a few obstacles during the conversion, a big one being the installation of a sprinkler system. We just missed the cut off in regulation changes for installing sprinkler systems in commercial to resi conversions and therefore had to spend an extra £16,000 on a full sprinkler system for each property.
Luckily we caught it just in time during the first fix and it's experience we will take into the next one.
Looking back, the development was very successful and project managing ourselves has gained us experience to take into future projects.
Going into 2023, we already have a couple of big development opportunities we are working on and we would love to speak to anyone looking to make some great returns from their money.
With inflation still in double digits, it only takes a bit of research to see why this is no use to your money sitting in the bank.
Looking forward to 2023 and we hope you all have a great Christmas and happy new year 🎄🎉
