🏡 Reno Opportunity: £140k Newcastle 3-bed semi

Hello and welcome to today’s edition of The Reno Hunter newsletter!

Today, we’re in Newcastle looking a three-bedroom semi-detached that recently came onto the market. Decent layout, front and rear gardens, garage, and a large driveway. With a full refurb, it could easily be flipped into a modern family home and bring in a tidy profit.

With a sale projection of £240k-£280k after renovation, this property could bring in up to 26% ROI on a cash purchase and low-cost renovation.

The Property 🏡

• Address: Lilac Avenue, Newcastle upon Tyne, NE12

• Agent: Rook Matthews Sayer, Forest Hall

• Listed Price: £140,000

• Property Type: Three-bedroom semi-detached house

• Condition: Requires full renovation, presenting an excellent opportunity for customisation and value addition

🌱 🔗 View the property details on Rightmove 🔗 🌱

💡 Why We Like It 💡 

Why We Like It

• Spacious Layout: Generously sized lounge and dining area, along with three ample bedrooms, provide a solid foundation for a modern family home.

• Expansion Potential: The attached garage and large driveway offer possibilities for extending the living space, subject to planning permissions.

• Outdoor Space: A good-sized rear garden presents an opportunity to create an attractive outdoor area for relaxation and entertainment.

• Location: Situated in a desirable area with excellent public transport links, proximity to schools, and a variety of local amenities.

Comparable Sales 🏠

While direct comparables on Lilac Avenue are limited, a nearby property was recently listed for offers over £280,000 and sold last year. Additionally, the average value for a three-bedroom property in the area is approximately £210,000, indicating significant potential for profit margin post-renovation.

📊 Running The Numbers 📊

Running the Numbers

• List Price: £140,000

• Estimated Renovation Costs: £50,000 - £85,000 (including potential extension and high-quality finishes)

• Potential Market Value Post-Renovation: £240,000 - £280,000

• Buying, Holding & Selling Costs: Estimated at £10,000 - £15,000 (covering legal fees, stamp duty, mortgage costs, and agent fees)

• Potential Profit Margin: £40,000 - £65,000 (depending on final sale price and expenses)

🛠️ Renovation Plan ⚒️ 

To bring this property to its full potential, here’s what’s needed:

• Itemised Renovation Plan

  1. Structural & External Work

     • Assess and address any structural issues early (£5,000 - £8,000).

     • Replace or repair windows and doors to enhance energy efficiency and aesthetics (£6,000 - £8,000).

     • Consider extending into the garage to increase living space, subject to planning permission (£15,000 - £20,000).

  2. Interior Refurbishment

     • Lounge & Dining Area: Re-plaster walls, apply neutral paint, and install modern lighting fixtures (£3,000 - £5,000).

     • Kitchen: Remove existing fittings and install a contemporary, functional layout (£8,000 - £12,000).

     • Bedrooms: Update decor, replace flooring, and add fitted storage solutions (£4,000 - £6,000).

     • Bathroom: Complete refit with modern tiling, new suite, and updated plumbing (£5,000 - £7,000).

  3. Systems & Utilities

     • Conduct a full electrical rewire if necessary - though probably not from the pictures (£4,000 - £6,000).

     • Install a new central heating system, including boiler and radiators (£5,000 - £7,000).

  4. Exterior & Gardens

     • Landscape the front and rear gardens to enhance curb appeal (£2,000 - £4,000).

     • Tidy up the driveway and entrance area (£1,500 - £2,500).

Total Estimated Refurb Costs: £57,500 - £85,500

Note: These estimates are approximate and can vary based on specific project requirements, material choices, and contractor rates.

 🔮 How It Could Look 🔮 

We’ve gone industrial on this one - could be a really cool space 🏭️ !

💡 Final Thoughts 💡

That living space could be really impressive particularly if you’re able to extend into/onto the garage and convert that whilst you’re there. Planning shouldn’t be much of an issue if you need to apply for it as you’re not likely to be encroaching on the neighbours at that end of the property boundary.

This is one of those that feels like with the right eye and sensible spending, you can bring it in line with the rest of the sale prices in the area, many >£250k.

As always, do that due-dil!

Until next time…

Happy hunting,
The Reno Hunter Team

👉 Looking for renovation inspiration? Check out before-and-after renovation ideas on Instagram & Facebook

Disclaimer:

All projections are based on provided data and are subject to change. Always conduct your due diligence before proceeding with any property investment.