January has started as a very busy month for Saltbox Living Ltd. …
 
The markets have really fired up after the New Year with a lot of activity on the deal front.  At the end of 2019 things had slowed down with the large developers pulling out of the market and landlords and investors looking for clarity on Brexit.  Landowners were holding on to high valuations and playing a waiting game. The New Year however is a different story though as a realisation has come into the market and Brexit has somewhat become a little clearer, if that is at all possible.  Land has started to sell and the property market has started to become active.  Tax returns have had to be completed and the realisation of the gravity of section 24 is hitting home.  All this culminates into opportunities for the property investor.  Getting the right deal however still remains the difficult bit so investing will skill, experience and knowledge is the key.

Existing Property update 

Project 1 – 6 bed HMO in Darlington – This is now at the final furnishing stage with the property being advertised wc  6th March.  Saltbox Property Services will take this into portfolio and fill the rooms.  The property has been designed for the working professional and will be marketed for them.  We go through a rigorous pre and post viewing process to get the suitable tenants for the property.  Our policy is always to be patient and wait for the right tenant; it is always the best long-term policy. 

(Finish and furnished pictures in coming next month newsletter)
 

Project 2 – 6 bed HMO in Ripon – Conversion continues on this property with the end date scheduled for end of March.  As the conversion in entering into its latter stages we have started to prepare for the legal and compliance side of the HMO.  Engaging with the Council HMO officers on compliance is always a good idea.  I always communicate my plans with them and invite them for site visits before during and after a conversion has been done.  This week I invited the local officer around to see the property.  It is at the stage where all rooms and layout and functionality can be seen and any changes or comments from the officer can be incorporated at a far lower cost then if requested when the property has been completed.

Project 3 – 6 bedroomed HMO in Barnsley. Really please to announce – that the legal process is now over and the property has joined the Saltbox portfolio.  The design details are now being finalised with work due to start this month. 
 
This property is currently in a very poor state and will be taken right back to brick and reconfigured into a high end 6 bedroomed HMO for the professional market.

Project 4 – In December we picked up the keys for a flat in Harrogate which will be refurbished and used as a SA /holiday let. We have placed a tenant into this flat for the time being whilst we plan this property into the development schedule.  Sometimes this is necessary when you have numerous projects underway at the same time, controlling the resources is key to maintaining the quality standards.

Project 5 – 7/8 bed property in Cumbria

As I commented on last month this property came along with a very short lead-time and had to be bought within 7 days.  Some of the best deals come this way and you have to be ready for them when they appear.

The property is a magnificent huge property that has been left empty for some time.  It needs a full refurbishment but has been bought 70k under market value.  Creating the correct design for this property is crucial to maximise its investment potential so architect drawings and possibilities are currently the focus.  At Saltbox we do chose to work with a small number of key investors and this one where we are working with one of these investors to gain a combined benefit on both income and equity.

The start of the year has continued to be strong and my personal focus at the moment is working through the many opportunities we have to establish which are the very best deals.  We are currently looking at some larger development opportunities that offer both excellent profit returns as well as some designed to give particular high returns. 

See you next month.