Property Investment Transformation Videos

Project Overview:

Two sisters, Claire and Rachael inherited their late father's portfolio of 6 HMO (House Multiple Occupation) properties with 50/50 split.

All properBes are in their personal names. None form part of a limited company or any sort of partnership agreement.

A few months after their father passed away, they had been battling and, in some cases, fighting to organise tenants. Very little information was provided to tenants so issuing S.8’s and S.21’s had been a huge challenge.
The portfolio was in an unmanageable state, and they were finding it a struggle. Employing a property manager/letting agent was a key step in helping revive these properties from becoming uninhabitable. Let alone trying to increase both the rental and the property values.

Both Claire and Rachael's families concluded that selling any of these properties was not an option. They wanted these properties to turn from, essentially a muddle, into a tangible transferrable family asset that can be passed down to their future generations.

Until Claire and Rachael joined the ASSETONE System program helping them to put together an action plan to restructure their entire financial and tax planning, how to set goals for WEALTH and become hands-off property investors, free from complete refurbishment, full project management and lettings and property management services.

We choose George Street as the first 'Complete Refurb' property. Within 20 weeks, we transformed this property into 6 en-suite bedrooms and was revalued at £675,000 from £275,000 achieving a gross rental income in excess of £5,800 per month. We pulled out £350,000 from George Street and use this fund to start the second property, at Prospect Street.

Who was the client and where are they based?

Claire and Rachael were introduced to ASSETONE from another letting agent where our Pillar Properties' property manager used to work with 10 years ago. They referred them to us because they know we are best placed when comes to managing HMO properties in Reading.

What was George Street Like Originally?

Originally was a 6 bed HMO with poor quality housing and bad tenants and needed significant improvement. George Street was situated in an excellent location with both the Reading West and main train station a stone's throw away and 7 minutes’ walk into the Reading town centre.

What problem did the client face personally and with the property?

Removing existing tenants who had no legal paperwork at hand was troublesome.
The basement at George Street suffered water ingress. Our builder resolved it by tanking it i.e. creating a completely impermeable waterproof barrier on the internal walls and floors.
Careful redesign of the new pipework and installing them for drainage, irrigation, sewage and drinking water require past experience and expert knowledge of building regulations, safety standards and guidelines. Working with such important parts of the buildings, we took all the worries away from our clients.
To pay less tax, Clare and Rachael had no idea of how to transfer their jointly owned property portfolio in their names to a limited company. We brought in our Property Business tax specialist and was able to save £18K tax per annum straight away with a total saving over the next 45 years, would be in the region of £810K.

Project Goal:

To renovate with 'complete refurb' into a high end 6 bed ensuite HMO all with ensuites and good-sized communal space generating £6k p.m. gross rental income from becoming a nearly uninhabited piece of property with zero income.

Raised capital from its enhanced value to go toward another of their properties without using any of their own money. Here, the amount invested of £350,000 to complete refurb George Street was fully recouped and reinvested into another property. George Street is now producing Claire and Rachael a net cash flow in excess of £3,000 per month after deduction of all management fees, maintenance charges, utility bills and council tax.