We are currently working on a deal in a strong part of London, where the Crossrail is due to come in 2018. The property consists of a parcel of land with a building containing multiple studios, which are bringing in a gross income of 8% per annum. On a purchase price of £6m, this is a whopping return on your investment given the location is a stone throw way from central London, and is in a regeneration area in its own right. If all you do is purchase and hold the investment, this would be no bad thing.
The building itself has multiple ways to add value, through a programme of development and refurbishment. The current square footage is 12,000, and given the purchase price is £6m, this equates to £500 per sq. ft., which is cheap given the location commands rates of £850 per sq. ft. minimum.
Given this is a market where good deals are surfacing, we can afford to be picky and go only for the cream, and where there is an angle. This is one such deal.
On this piece of land, we spotted an opportunity, we knew something which both the seller and the agent missed. It is said information is power, in property this can be translated into hard money.
We knew, and had then got confirmation from our planning consultant, that this piece of land can be split, meaning part of the land can be cut off from the main property and not affect the value of the existing building. The property is on a corner plot, and the empty piece of land fronts another street.
Here we can get planning for a three-storey building, in its own right the GDV of the finished development will be in the region of £6m. This means the land with planning should be worth at least £1.5m.
In other words, the property can be cut off and resold for £1.5m once planning is in place. The planning can be applied for between the period of exchange and completion. There is even a possibility of getting this resold based on a positive preapplication which negates the need for going for full planning and is a quicker way to cash in on the investment.
Here is an example of money being made based on knowledge, it’s hard to find this in the property market as generally everything is known and apparent.
Due to the way this deal can be structured, here’s an opportunity to make a lot of money with relatively little. If this excites you call the office now.
And a partridge in a pear tree, not a property
Whether you’re a landlord of a flat or house, pets are always a huge sticking point when it comes to renting out a property.
Some landlords allow cats and birds but no dogs, while others are open to pretty much everything. If you find yourself in a situation with a renter having a destructive pet, it’s important you get a Pet Policy in place.
This is my personal list of worst pets from a landlord, tenant and agent’s point of view:
#5: Reptiles
Growing up, we actually owned a snake and it was relatively easy to take care of. It made the room stink a little bit and once a week we’d drop a mouse in the cage, and that would be that. I think the only apprehension I have with reptiles is some of them are dangerous and if they somehow get out of their cages you could have a big problem on your hands.
#4: Fish
I think most landlords would probably be OK renting to someone with a fish tank. You might have to put a size limit on it though, as if the tank breaks you don’t want to have a massive flooding on your hands. The nice thing about fish is that they keep to themselves and they don’t make any noise like some other pets do.
#3: Dogs
As a renter, I would love to have a dog. It’s nice coming home to see that happy face every day, no matter what mood you’re in. That’s probably why so many people live with dogs, they make for great companionship. And while most dogs are well behaved and quiet, the 10% that aren’t can really ruin it for everyone.
Having lived in several different residences (houses, apartments) over the past 10 years I’ve seen all sizes and manners of dogs, and the only ones that really bothered me were the tiny dogs with high pitched barks.
#2: Cats
Let me say first of all, I am not a cat person. Even though they can be trained to use the bathroom in a small sandbox, I have never been a fan. But that being said, many people do love their cats and the thought of living without them is torturous. Cats are pretty quiet by pet standards so the number one issue that comes up with them is damage. Felines tend to gnaw on things around the house, scratch walls and basically do all the little things to damage your property. You could offset this by requesting a larger security deposit but cats definitely add a lot of wear and tear to your property.
#1: Birds
You might not think that birds would top the list of worst pets, but I’ve never met a quiet bird. They are constantly gawking and screeching and they are at their worst when the owners are not home. So, bird lovers might think their pets are well behaved when they’re around, but the second they leave, these animals tend to make the most noise.
I think the bird loving population is pretty small, so you wouldn’t be losing many potential tenants by disallowing birds but you would be keeping it nice and quiet for everyone else.
