Maesteg, CF34 0BP | Investment Property for Sale | VES-CF34-001

Opportunity to purchase a block of 7 units in Maesteg generating £39,000 & a gross yield of 9.5%

£410,000

7 Unit Block

VES-CF34-001

INITIAL INVESTMENT

£192,060

GROSS RENT / YIELD

£39,000 / 9.5%

NET RENT / YIELD

£28,060 / 6.8%

Above average yield

Through our expertise and research, we have found that this property is above the average of this location based on data from REalyse, PropertyData and Zoopla

The higher the yield the stronger the return on investment.

The block

TENURE

Freehold

NO OF UNITS

7

TENANCY STATUS

Tenanted

FURNISHED

No

TOTAL SQ FT

4,126

PRICE SQ FT

£99

Property information:

  • Please note that this property is currently on 1 title, but can be subdivided into 7 flats in future with individual titles and leases

  • The building was converted and finished at the beginning of 2018

  • Floorplans for each floor can be emailed upon request due to the size of the documents

  • EPCs for all units can also be provided upon request

Property breakdown:

  • Flat 1 - 760.68 sq ft - 3 beds, 1 bath - £500 rent pcm - tenancy start date 29/09/2018

  • Flat 2 - 511.72 sq ft - 2 beds, 1 bath - £425 rent pcm - tenancy start date 30/10/2018

  • Flat 3 - 665.64 sq ft - 2 beds, 1 bath - £475 rent pcm - tenancy start date 06/10/2018

  • Flat 4 - 550.25 sq ft - 2 beds, 1 bath - £500 rent pcm - tenancy start date 11/01/2019

  • Flat 5 - 538.20 sq ft - 1 bed, 1 bath - £425 rent pcm - tenancy start date 30/12/2018

  • Flat 6 - 364.79 sq ft - 1 bed, 1 bath - £475 rent pcm - tenancy start date TBC

  • Flat 7 - 735.17 sq ft - 1 bed, 1 bath - £400 rent pcm - tenancy start date 20/11/2018

Market Trends:

Sales Trends

  • Prices in CF34 have increased 27% over the last 5 years (-2% over the last 12 months) and are £91k which varies by property type (£52k for a 1-bed flat to £256k for a 5-bed detached property).

  • On average, there have been 19 properties sold per month in the area in the last 12 months.

  • In comparison, prices in the wider Cardiff CF area are £159k (0% over the last 12 months) and range between £114k for a 1-bed flat to £406k for a 5-bed detached property.

Rental Trends

  • Rents in CF34 are now at £488 per month (0% over the last 12 month).

  • On average, there have been 9 properties listed for rent per month in the area in the last 12 months.

  • Given prices in the area, gross yield is currently 6.9% which is higher than the national average of 4.7% and in line with the wider Cardiff CF area of 6.9%. This block is currently achieving a gross yield of 9.5% which is 27% higher than the area.

Source: REalyse - 16/04/2019

Documents available on request, please contact for viewings or further questions.

The information relating to the property is supplied by the vendor and the latest available at the date of listing.

Certain information may expire or become inaccurate over time and should be verified by the purchaser’s solicitor.

Financials

Rental Income

GROSS RENT PER ANNUM

£39,000

Equivalent of £3,250 per calendar month (PCM).

GROSS RENTAL YIELD

9.5%

Gross rent per annum divided by the purchase price.

NET RENT PER ANNUM

£28,060

Gross rent per annum minus fully managed operating costs.

NET RENTAL YIELD

6.8%

Gross rent per annum minus fully managed operating costs divided by the purchase price.

FULLY MANAGED OPERATING COSTS

£10,940

The total estimated sum of expenses calculated annually assuming a fully managed service.

Click to understand assumptions.

Disclaimer

This information is for illustration purposes only and does not constitute advice. It is correct at the time of writing. For advice specific to your personal circumstances, please speak to a financial adviser.

About Maesteg, Wales

Maesteg is a town in Bridgend County Borough in Wales. It is located around 7 miles west of Port Talbot, 9 miles north of Bridgend and 10 miles northeast of Neath. Swansea is circa 16 miles to the west and Cardiff is about 27.5 miles northeast of Maesteg.

The town has two railway stations, Maesteg and Maesteg Ewenny Road. Both are on the Maesteg Line which runs directly to Cardiff Central via Bridgend. Most trains continue to Cheltenham Spa via Newport, Chepstow, Lydney and Gloucester.

With its close proximity to bigger cities Maesteg is a perfect commuter town. Port Talbot, being the closest to Maesteg, has long established roots in manufacturing and steel production. Some of the big manufacturers in the area include TATA Steel, BOC, SPECIFIC, TWI and ThyssenKrupp. Port Talbot Steelworks is the largest steel plant in the UK and employs over 4,000 staff. The city is also home to one of Europe’s largest indoor film studios and the area has been used as a location for tv programmes such as Doctor Who, Torchwood and Merlin, as well as filming of the Dark Knight, Harry Potter and Da Vinci’s Demons, to name a few. The University of South Wales has a campus at Baglan Energy Park which includes a Renewable Hydrogen Research and Development Centre.

Gower Peninsula is within an hour’s drive of Maesteg and was the UK’s first designated Area of Outstanding Natural Beauty. It is known for its coastline and is popular with walkers, outdoor enthusiasts and surfers alike. To the north are the Black Mountains and Brecon Beacons National Park. Other notable destinations are Aberavon Beach, mountain biking at Afan Forest Park, Waterfall Country, monastic abbeys at Margam and Neath, Roman roads, country parks and colliery museums.

High Street,

Maesteg,

Bridgend,

Wales,

CF34 0BP

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