42 Main St, Bishop Auckland
*Target start date is 31st May 2018. Shares may be issued in two tranches to avoid delays.
** Projected return to be paid as a capital gain if circumstances make it possible to do so
*** The Minimum Preferred Return is the return payable to Crowd Investors before the Developer takes any profit themselves.
Property name: 42 Main Street
Address: Bishop Auckland
Property type: House - Terrace
Property age: 1900 - 1949
Market type: Other
Description: This property is being acquired off-market at a discounted price and following the work it is valued at 27% above the purchase price. It will undergo a thorough refurbishment internally and externally, including repainting of the external façade. The house will then be rented at a monthly rate of £400. The LandLord has chosen a 1 year investment period to enable Investors to capitalize on the opportunity for capital value combined with the potential for a short period of rental income. Read more.
Bishop Auckland has performed on par with much of the North East over the last 5 years with price increases trailing the rest of the UK. However, Bishop Auckland is improving year on year partly due to the recent regeneration programme.
Local Property Market analysis uses House Price Index data from The Land Registry. The commentary is opinion only and should not be taken as fact.
|Legal & Professional Fees||£1,195|
|Total Funds Required||£53,125|
|Less Finance & Deposits||-N/A|
|Remaining Funds Required *||N/A|
|Ordinary A Shares - Developer Equity||N/A|
|Ordinary B Shares - Crowd Equity||N/A|
|Orindary C Shares - Crowd Equity||N/A|
* Shares may be issued in Tranches to avoid delays
|Gross Development Value*||£60,000|
|Gross Sales Price||£61,500|
|CL Growth Fees||-£1,078|
|Projected Net Profit||£6,060|
|Projected Total Capital Return||11.4%|
|Share of Growth Paid||70%|
|Capital Return to Investors||£3,843|
|Projected Capital Return to Investors||8.0%|
*The stated Gross Development Value is based on a RICS valuation
**Market Growth projections are the opinion of the LandLord only and in reality this figure could be less or even negative
|Investment Period||1 Year|
|Avg. Annual Income Return*||4.2%|
|Total Income Return*||4.2%|
|Total Capital Return**||8.0%|
|Projected Total Return||12.2%|
|Projected Total Annualised Return||12.2%|
*Income Return figures assume that the property will be void for a period of two weeks during the investment term, that refurbishment takes 6 weeks and that the rent charged will be £400 / month. In reality all of these variables might change.
**Capital Return figures are based on the assumption that local property values increase in line with the LandLord’s subjective projection of 2.5% per annum. In reality, local values may not rise by this amount or may indeed fall from their current levels.
|CrowdLords Risk Rating|
|Macro Location & Market||D|
|Level of Development||C|
|Landlord Track Record||D|
* The Risk Return Profile is a subjective assessment made by CrowdLords based on the information provided by the LandLord. Investors should make their own assessment of Risk & Reward before investing
We include a CrowdLords Risk Rating to illustrate where the investment lies on our Risk Return Profile. Where risks are higher it is usual to expect a higher return and this is designed to aid quick comparisons only. It is our opinion only and should not be taken as a recommendation. You should judge the Risk for yourself using the information provided and your own investigations to form your own opinion.
We rate Risk across 5 parameters and grade them as being A, B, C, D or E. A being lower Risk. The five areas we grade are:
As a young, 24 year old entrepreneur who runs a successful and growing digital services business in London, Joe sees property investment and management as a way of getting onto the property ladder.
He is a practical and commercially minded individual who, having ploughed all his time and money into his business since he left university, is now looking to build capital for a deposit for his first home. He's targeting properties where it's possible to add value whilst also delivering a good income return to fellow Investors.
I am the Co-Founder and COO of a growing web services business based in London
How long have you been involved in property?
This is my first foray into property. I’ve been looking at it since I was 16 but have not, until now, had enough capital to get started having piled everything into my business venture – which is now stable and generating profits.
How big is your property portfolio?
I don’t have one, yet. But I’ve spent many years watching the market and improving my knowledge and now I’m ready to take on the responsibility and do it for real
What development experience do you have?
None so far, but I do have good business experience that stands me in good stead.
I see it as being the same as running a business. I have a product to market to a particular audience. It’s important I find the right customers and that I deliver a good service. And as long as I look after the product, get the pricing right and deal with all the legislation and bureaucracy – I can make it a profitable business for us all.
Why did you choose to raise finance through CrowdLords?
I was attracted by the equity model as opposed to using debt.
CrowdLords enables me to start to build my portfolio at a decent rate, only limited by my ability to find the right properties and the amount of effort and hard work I am willing to put into it, as opposed to being limited by my bank balance.
Why the North East?
I am targeting areas with steady or increasing rental demand combined with higher than average yields.