🏡 Ren Opp: £225k - CF83

Welcome to this today’s edition of The Reno Hunter Newsletter! We're thrilled to bring you another exciting property with incredible renovation potential. This issue, we’re diving into a fantastic opportunity in Bedwas, Caerphilly—a charming bungalow that’s just waiting to be transformed for a lucrative return.

🏚️ Renovation Opportunity: Cherry Tree Close, Bedwas, Caerphilly, CF83 8HB 🏚️

🪴 🔗 View the property on Rightmove 🔗 🪴 

Here are the top line numbers to get us started…

Price: £225,000
Total Cash Investment: £93,075

Estimated Sale Price: £300,000

Total Profit: £31,600
Estimated ROI: 36.04%

OK let's get into it...

🌟 The Opportunity 🌟

This charming bungalow in Bedwas, Caerphilly, offers excellent renovation potential. With a reasonable purchase price and room for value-adding refurbishments, it's a solid investment for house flippers or those looking to add to their reno-flip portfolio. Its location in a sought-after neighbourhood adds further appeal, with comparable properties in the area showing strong price appreciation.

📸 How It Could Look 📸

Overall it’s not in bad nick - it appears to have been cleared well and pictures showing we can focus on the important areas like the kitchen and bathroom for quick wins. Along with a new paint job and carpets throughout, you won’t have to go too far to add value.

We like this Scandinavian take on the kitchen…

📊 The Numbers 📊 

💰 Purchase Costs 💰

• Purchase Price: £225,000

• Stamp Duty (Welsh LTT, including second home rate): £12,825

• Legal Fees: ~£1,500

• Mortgage Deposit (25%): £56,250

• Mortgage Arrangement Fee: ~£1,000

Total Purchase Costs: £71,575

🛠️ Refurbishment Costs 🛠️ (Estimated 10% of purchase price):

• Kitchen and Bathroom Upgrades: £12,500

• Redecoration and Carpets: £6,000

• Exterior Improvements (e.g., landscaping, painting): £4,000

Total Refurbishment Costs: £22,500

📈 Holding and Selling Costs 📈

• Monthly Mortgage Payments (5% interest, 75% LTV, 6 months): £3,515

• Agent Fees (1.5% of sale price): £4,500

• Legal Selling Fees: £1,000

Total Holding and Selling Costs: £9,015

Total Estimated Investment

Cash Outlay (Deposit + Refurbishment + Fees): £93,075

💷 Estimated Profit and ROI 💷 

• Estimated Sale Price (Post-Renovation): £300,000

• Profit After Costs: ~£31,600

• ROI Calculation:
  Profit (£31,600) ÷ Initial Investment (£93,075) = 36% 🔥 

💡 Why we like it... 💡

• Comparable Sales: Properties on Cherry Tree Close have sold for up to £283,000 recently, showcasing the area's demand and appreciation potential. Nearby detached properties have exceeded £300,000, indicating strong market conditions.

• Local Amenities: The area boasts proximity to Caerphilly's transport links, schools, and retail facilities, making it attractive to buyers and renters alike.

• Strategic Renovation Focus: The proposed refurbishment plan ensures the highest potential return by prioritising high-impact areas like kitchens, bathrooms, and curb appeal.

🛠️ Reno Tips Corner 🛠️

Quick Renovation Tip: Focus on neutral tones and quality finishes in kitchens and bathrooms to appeal to a wider buyer demographic. Small touches like modern cabinet handles or a stylish backsplash can elevate the look without inflating costs.

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

Wishing you all the best in your projects for 2025!

Until next time…

Happy hunting,
The Reno Hunter Team