Have you heard about this investment strategy?

21 January, 2022

Have you heard about this investment strategy? (21/01/2022)

Location

This week, I’m sharing a great investment strategy that could improve your portfolio and have 5 examples of plots that might suit this kind of investment. This property investment strategy is all about splitting the title, but more about that later.

We all know that land in terms of ownership - is a case of more the merrier or even the mere fact of its location. This investment opportunity will require you to find a property with a large plot of land to the side of it or a ‘wrap around garden’, or a property that can be split into independent entities – such as two/four/six flats.

As I know Nottingham like the back of my hand, warts and all, I’m keen to show you a little undiscovered gem that we have in NG8. Usually overlooked by investors, apart from the usual buy to let, fill ‘em up with a family on benefits, getting just above the LHA rate in rent variety. That’s not what I’m interested in for the purpose of this blog.

Aspley Nottingham has a plethora of ex-council family houses, many in very poor condition and not fit for purpose. What’s particularly interesting about this area, is that the houses are generally solid and often on large plots. The Nay-Sayers reading this will have an issue with investors coming in and snapping these up for development. I would argue – let’s hope they do, those properties that need a do over could do with just that. We can then have more housing stock that we are happy to put our name to here in Nottingham.

I’ve pulled out just one street to give you a flavour of what we are looking at.

So, let’s look at some examples of plots that lie on Allendale Avenue, Aspley, Nottingham, NG8 5RE.

Cost

There are five of these properties on this street alone that have piqued my interest, one of which has been advertised on Right Move with Holden Copley with the guide price of £170,000.

Key features:

£170,000
3-bedroom
1 bath
End of terrace
Corner plot
Wrap around garden
Connected conservatory (Source: Right Move)

Title splitting

You may be able to maximise your investment by title splitting the plot, creating a division in your property, forming separate entities that you could sell on or rent out.

Title splits are, as the name would suggest, splitting (or dividing) the title deeds of one building. As a result, that one property becomes two, three or four etc. You could also buy a property with a large garden (corner houses are good for this) and split the two.

Therefore, as a result of the title split, one property becomes two or maybe three or four etc, making corner houses a great example of this opportunity.

The benefits of having separate titles for one investment is certainly worth the consideration.

I found this location in Aspley which is a gold mine for corner plots with plenty of vacant land for a new property/development.

You could start by selling off the surplus land and using that capital to renovate the property you have bought, potentially splitting the property into two or more apartments/ building an extension/loft conversion, etc.

Another option would be to build on the plot at the side of the property and create another 4/6 apartments, like what you would do to the original property on the plot. Potentially giving you several separate titled properties to sell on or rent out.

You could rent out each apartment in the area for £550 - £600 for a 1-bed or £650 -£750pcm for a 2-bed assuming that it is of a very good standard.

This would total £2200-£3,000pcm with all four apartments on the plots included (if you were to own all the properties on the plot). If you were able to get 6 apartments on the plot you would be looking at gaining a maximum of £4,500pcm.

Alternatively, you could sell on the apartments for £130,000 for a 1-bed and for a 2-bed £130,000 plus.

Potential benefits of locality

The properties are located close to an ‘outstanding’ secondary school, The Trinity Catholic School A Voluntary Academy and is close to two ‘good’ secondary schools, Bluecoat Academy and Ellis Guilford School.

The plots are just 2.5 miles away from Nottingham City Centre which can be accessed via bus routes: 77, 78 and rainbow one. Providing regular transport to job opportunities in offices and retail that are within the city centre.

Both the QMC and City hospital are within an easy commute.

Also, there is only a short walk to Aspley Lane and Strelley Road for access to supermarkets such as national chain, Asda.

Being just 1 mile away from the M1 motorway this location provides excellent outer city links.

Licensing

The property is not within the area of selective licensing for private rented houses. The property is not within the HMO additional licensing area. The property is within the citywide mandatory licensing area for HMO.

The most common Council Tax band is A for the postcode within the Aspley Ward of the Nottingham City Council. (Source: Check My Postcode)

The most common Energy Performance Certificate (EPC) ratings are E, D and C. (Source: Check My Postcode).

Whilst Aspley is generally not a ‘go-to’ investor location, I can most certainly see significant advantages to the investor and the local community alike. The opportunities for investors to squeeze their assets to the max I certainly there. As for the local community, I feel that an injection of better-quality homes and more of a mix of the types of occupants residing there, would be hugely instrumental in improving this area for all.