PROPERTY ACQUISITION & REFURBISHMENT COSTS

House Value ........................................................................£195,000
Refurbishment ....................................................................... £15,000
Fees and Legals ..................................................................£25,000
Company Costs .................................................................... £15,000
Total Acquisition Cost ..................................................£250,000

ANNUAL COSTS

Insurance ..................................................................................£1,000
Furnishings ..............................................................................£2,500
Interest to investors @ 7.5% ................................................£18,750
Total Annual Costs ......................................................... £22,250

GROSS ANNUAL INCOME

Rental returns per week per room, for the Supported Housing
sector, vary between £150 - £350 per week, depending on the
category of tenant. For this example a rental income of £150
per week per room has been assumed.
Room Rental (Per Week) ........................................................... £150
Annual Room Income ............................................................ £7,800
Annual Property Income (5 Bedrooms) .......................... £39,000
Gross Annual Income as % of Property Value ................ 18.5%
(Including Refurbishment)

NET ANNUAL INCOME

Gross Income ....................................................................... £39,000
Property Costs ..................................................................... £22,250
Net Annual Income ..........................................................£16,750

NOTE

These figures are only examples and not taken from an actual project.

EXAMPLE PROPERTIES


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ESTIMATED CAPITAL GROWTH OF ASSET

The average property in Sheerness, Kent has increased in value by between 8 - 10% per annum over the last five years.

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EXAMPLE - ORIGINAL PROPERTY VALUE:

Purchase
Price
Refurbishment
Costs
Total Purchase &
Refurb. Costs (TPRC)
£195,000 + £15,000 + £210,000
After 3 Years
Value increase assuming 8% growth p/a
- After refurbishment
£50,400
Net Income £50,250
Total Value Gain £167,750
Total Estimated Value £310,650
Net Gain on TPRC (£210,000) % 48%

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NOTE

The actuarial value of the property may potentially increase considerably more than this, as the business and income stream should make the asset more valuable. A professional valuation will be done prior to any future flotation.