Case Study

See how we sourced and renovated this investment property

With the economic environment becoming more uncertain and traditional investments yeilding lower returns it is an ideal time to look for alternative strategies, in-particular the property market. With the formula and strategy outlined below we were able to achieve upwards of 18% return on investment, whilst holding an asset which over the next few years will no doubt grow in value. This is a prime example of how a relatively small investment can achieve you a reliable return using a strategy that can be scaled across multiple investment properties.

The Brief

At the time of engaging with this client it was late 2019 during the height of Brexit negotiations and an under performing economic climate. For this reason our client wanted to invest their money into something more stable than the current stock market offering. The brief was simple, they had £70,000 to invest and wanted to achieve a minimum 15% Return On Investment (ROI), location wasn't a factor as they wanted the property management to be outsourced.

The Solution

After discussing the brief with the client we started our search for properties across the UK after which we discovered that conventional assured shorthold tenancies (AST) would make it hard to achieve the ROI goal based on the amount they would like to invest. This made us look at properties with high potential for Service Accommodation lets (SA) and also areas that attract high occupancy for this form of rental. This is how we came to find the following property, based in Cardiff city centre this 3 bedroom property lends itself ideally to the short term let market. A report released from Airbnb in 2019 ranked Cardiff as the 11th highest trending city in the world, thereby indicating a property based here should yield reliable income stream.

The Numbers

The property was purchased via a Special Purpose Vehicle company. Structuring the acquisition in this way is both tax efficient as renovation costs and bills are both allowable expenses. Similarly structuring the purchase this way easily allows additional properties to be added to the portfolio at a later date. Below are detailed out the breakdown of the figures for this property.

Contact form

Got a question? We'd love to hear from you. Send us a message and we'll respond as quick as possible.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Site MapPrivacy PolicyTerms & Conditions