Projects Update - April 2025
Hello and welcome to the latest update on my projects.
Read on to see what I’ve been up to over the last couple of months…
One of the new kitchens at Project King.
Earlier this month we completed the works at Project King (my conversion to three flats near Oxton village).
I’ve included a few photos above but there’s plenty more to see if you head over to the Projects page.
I’m really pleased with how this one has turned out. It’s two 2-bed flats and one 1-bed flat and they’re all generously sized with a whole floor of the property to themselves. I contemplated trying to squeeze an extra 1-bed flat in at one stage but I’m glad I didn’t as it’s so much more satisfying to create spacious living areas and know the tenants are more likely to enjoy the space for a long time.
The high standard of the finished products was evidenced by the market reaction when they hit the rental market. We held an open evening which attracted dozens of viewers and all three flats were snapped up within 24 hours!
It’s great when there is strong demand for a rental property as, not only does it mean you’ve done a decent job creating/refurbishing the properties, it also means you can choose which tenants are best for you.
Meanwhile, the refinance is almost complete which will free up some capital for future projects. Refinances are never straight-forward but this one has certainly not been my most challenging…yet! All being well, this process should complete in the next week or so and then the flats will sit in my portfolio and (hopefully quietly) generate a nice steady income for the business.
One question I get asked a lot is whether it’s best to fix a mortgage rate for 2 or 5 years or even to opt for a tracker product which changes relative to the Bank of England Base Rate. The truth is I’ve done them all since I started the business! It really depends on the circumstances - what the market is doing, what politicians are planning, what your plans are for the property etc.
My current strategy is to fix for five years. I’m getting interest rates around the 5% mark for those mortgage products and the projects cashflow nicely at that rate. I could get lower by fixing for a shorter duration or opting for a tracker product but there are so many other factors to consider - all of which have some form of financial impact in the long term. The key factor for me at the moment (and for the foreseeable future) is the ‘hassle factor’. Refinancing projects is a real hassle in terms of paperwork and other obligations but it also carries some risk. There is a trend at the moment for lenders’ valuers to ‘down value’ properties, meaning you end up leaving more money in a project than you would like. This can have a negative impact on my business and it’s something I look to avoid as much as possible. I also want to free up my time for new projects as I continue to grow the business so regularly refinancing is not time I consider well spent. So, for now at least, I’m opting for the strategy with the least hassle and the most certainty of costs going forward. Fixing for five years may or may not be right for you but it’s critical to consider your own circumstances before you can decide.
Nearing the finish line at Project Alex.
Over at Project Alex, we’re on the final push to completion.
As you can see from the photos above, there’s not much left to do. It’s mainly finishing off the second fix electrical work and snagging throughout.
All being well, we should be finished in a couple of weeks then it’s time to find tenants and get the refinance process started.
This one has taken far longer than initially anticipated due to delays with utilities companies so I can’t wait to get it finished.
I’ll be able to show off the finished product in the next update so keep a look out for that!
As well as managing the above projects I’m very much in ‘project sourcing’ mode at the moment to replenish my pipeline.
I’m looking for properties I can add value to through refurbishment so the more run-down the better! My ideal projects at the moment are bungalows across the North West as there’s such great demand from people looking to downsize who don’t want a refurbishment project.
If you happen to know of any run-down properties near you (bungalows or otherwise) please give me a shout and I will happily take a look. I can pay referral fees if I go on to purchase the property so it’s a win-win scenario if you find something!
That’s all for this edition. I’ll be back next month with some market updates. In the meantime, have a great month!
Thanks for reading,
John