Bruce Street Development Case Study

The Property

They say location is key. Cathays is at the heart of Cardiff's 'studentification', a sought after area for students and property developers alike. So, the fact that this property is located in 'studentville' is an initial unique selling point that adds property value before a single nail has been hammered or a wall comes tumbling down.

The mid terraced property is a Cathays classic full of potential. Before development it was a 2 bed property lying dormant, not yet meeting its full potential. Following a strenuous tenancy the landlord needed some help getting some naughty tenants out: cue CPS Homes!

The Big Idea

With so much underused space available at the property, it was evident to the trained eye that the redevelopment potential was there in abundance. This potential would allow the landlord to double the bedrooms, turning this 2 bed misery into a profitable 4 bed gem.

In the process the house would go through some major redecorating, adding much needed modern features, getting rid of the old and in with the new.

Property Assessment

Timing was a crucial factor. With the troublesome duo vacating the property in the beginning of May, this allowed ample time to carry out a successful redevelopment project. In order to meet the aims of this project, the property needed to be free from tenants in the short-term. This was to be a building site through the summer - making this a sought after 4 bed house come the start of September, ready in perfect time for the next university year.

CPS Homes has a very handy, long list of reliable, hardworking and modern contractors to call upon when in need. Sending out our team of top guns, the property development project was assessed and quoted. In order to paint the picture, CPS Homes presented a full property assessment highlighting what work was to be done: where, when, why and importantly, for how much. Interior decoration examples were provided, along with before and after values of the property, 'should' the landlord wish to sell.

With a happy camper on board the less glamorous, but extremely important due diligence side of the redevelopment project was sorted. This included sorting out the planning permission, the landlord seeking the right financial guidance for the project and of course, a few cups of tea before the hard work begins.

Let the Building Commence.

A modern and attractive appearance must be supported by quality foundations, it's a perfect combination. On that principle, the property development combines stronger foundations and modern designs that will allow for longevity and profitability.

The kitchen is where any household spends a lot of time. It's a focus point not just for hungry tenants, but also in determining property value. Gutting out the old and replacing it with an upgraded modern, spacious kitchen that even Gordon Ramsey would be satisfied with brought a new dimension to the house. The most expensive aspect of the project at £5500 saw completely new plumbing, electrics and appliances added. With a mix of modern white units, topped by dark wood surfaces and garnished with slick spotlights; this kitchen serves up space, quality and style - just a shame most students live on take-aways!

Bathrooms, they can be the most complex rooms in the house. Some spend too long in there, some need to spend more time in there, some leave it smelling like a meadow and some leave traps behind and some should be banned. Whatever your bathroom etiquette may be, there is a general modern day need to have a high standard bathroom that is sustainable for the house. Following in the high standards set in the new designer kitchen, this bathroom mirrors its designer finish, strong foundations and high quality. Having been re-tiled, re-decorated to a high standard, and kitted out with new units complete with a brand new electric shower: this bathroom would have the smelliest of folk in no rush to leave. Investing £3,200 has added a great value bathroom perfect for a four bed house share.

Quality was added all over this property. Walls were stripped, plastered and painted. Laminated flooring was added along with new carpets in the bedrooms. The foundations were gutted out and worked on, giving the house a full MOT. The project was finished off in style by being nicely re-decorated all over, giving it a modern clean feel.

Results

Having been a market leader for over a decade now, CPS Homes are 100% confident in its abilities and when committed, the results will come. As they did here, the project finished on time and within budget, as quoted in the beginning. The workman even had time for tea breaks; a happy workforce is a good workforce after all.

Before work commenced back in the times with the troublesome duo, the house was in a worse state and only bringing in £575 per calendar month total or £6900 a year.

Work then commenced in May 2012 and finished slightly ahead of schedule in early August. With obvious new selling points in property, it was quickly let out at the start of September as a new four bed property at £1,100 per calendar month, or £13,200.

So, from 2011 to 2012 the rent increased by £525 a month, or £6350 a year: that's nearly doubling the rent! This means within two years the redevelopment costs will be covered, leaving years 3 + to bring in an extra £6,350 income per year.

Furthermore, should the landlord look to sell as a buy to let, this property could make up to £40,000 from its original value. Originally bought for £130,000, with a value after development of £170,000, it is evident to see that this project is another success that CPS Homes has put its name on.