Social Housing Transformation: Solihull Home into a safe HMO Haven for the Vulnerable

Before

In the vibrant locale of Triumph Walk, Birmingham, we embarked on an ambitious project that transformed a standard 4-bedroom family home into a lucrative investment. Purchased in 2018, this property was initially rented for £775 per month, yielding a profit of approximately £350 monthly after covering mortgage, agency fees, and insurance. This project is a reflection of our innovative approach to property development and our commitment to unlocking the full potential of every space we handle.

Project Details:

• Location: Triumph Walk, Birmingham

• Original Property: 4-bedroom family home

• Purchase Price: £134,000

• Refurbishment Cost (2022): £100,000

• Purchase Date : September 2018

• Completion Date : March 2022

Transformation Highlights:

The family home underwent an extensive transformation, converting it into a 6-bedroom, 2-shower room HMO. A key milestone was securing a 7-year lease with a social housing provider for asylum seekers, guaranteeing rent and a fully insured repair & lease contract. This strategic shift not only maximised the property’s earning potential but also ensured stable, long-term income.

Financial Success and Valuation:

The financial results of this transformation are remarkable. The property now generates a monthly rental income of £2,000, leading to an annual net profit of £16,980. The costs, including mortgage and a furniture lease, are efficiently managed, resulting in a significant monthly net profit of £1,415. The ROI on this investment is an impressive 12.26%, with a net yield of 9.23%. As of 2023, the property's valuation stands at £260,000.

Conclusion:

A Testament to Strategic Property Development, the Triumph Walk property’s journey from a regular family home to a high-yielding HMO for the vulnerable is not just a financial success story. It embodies the essence of strategic planning, creative development, and efficient management. This project highlights our expertise in transforming properties into highly valuable assets and showcases our dedication to achieving exceptional results while providing a platform for the vulnerable to integrate back into society. Triumph Walk stands as a prime example of how thoughtful development and astute management can significantly enhance the value and profitability of a property.