FLIP · Property AnalysisInvestment appraisal for 4-bedroom terraced property, Holmdale, Sidmouth, EX10.
This property is a high-potential refurbishment project located in a desirable coastal town. While the property currently presents in a dilapidated state requiring significant capital expenditure, it offers a solid canvas for a cosmetic and structural uplift. Given the current market, the ROI is 7.1%, providing a healthy margin for a project of this scale. This is a pragmatic, medium-risk project.
Based on local comparable sales (terraced properties in Sidmouth), a renovated 4-bedroom house in this location commands between £420,000 and £450,000. We have taken a conservative 75th percentile ARV of £435,000. The refurbishment adds value by transforming a "tired" asset into a modern, turnkey family home, which is currently in high demand. Justification for scope: The property requires full modernisation (kitchen, bathroom, flooring, re-decoration, and potential structural checks due to damp). This is essential to achieve the target price. Leaving it as-is would severely limit the buyer pool and resale value.
Note on ROI: The ROI of 7.1% is calculated as follows: (Gross Profit £28,900 ÷ Total Project Cost £406,100) × 100. This calculation includes holding costs and upfront finance fees for a 6-month project duration. Additional estimated selling fees of £6,500 are considered outside the primary project cost basis.
Sidmouth remains a robust market. Period properties with parking potential (as noted in the listing) are highly sought after. Short-term appreciation is unlikely to be the primary driver of profit; the margin is derived strictly from value-add renovation.
The property is listed with "no onward chain" and is described as needing "modernisation." This indicates an executor sale or an investor looking to offload a tired asset. The seller is likely motivated for a quick, clean exit.
The property is in significant need of work, which always carries risks of budget overruns (hidden rot, rewiring, etc.). However, it is structurally sound (appears to be solid masonry). The primary risk is the current economic climate impacting liquidity in the £400k+ bracket.
Certainty: 1%. The property is already a 4-bedroom house. Reconfiguring for a 5th bedroom would likely require sacrificing reception space or expensive loft conversions that do not guarantee a higher ARV to justify the cost. Not recommended.
The property is a prime candidate for a low-ball offer based on the visible condition. Highlight the damp issues and the full renovation requirement.
Kitchen Units - Cost: £4,000 | Appliances - Cost: £1,500 | Flooring Pack - Cost: £3,000 | Bathroom Suites - Cost: £2,000 | Paint/Decor - Cost: £1,000 | Radiators - Cost: £800 | Lighting - Cost: £500 | Skirting/Architraves - Cost: £600 | Door Handles - Cost: £200 | Exterior Paint - Cost: £300 | Garden Fencing - Cost: £500 | Tiling - Cost: £1,000
Weeks: 12 || Months: 3
Approx 1,400 sq ft (Estimated based on 4-bed terraced typology in the area). Confidence: 80%.
This is a viable project for an experienced investor who can control renovation costs effectively. The current projected ROI of 7.1% provides a reasonable return, though strict budget management is required. The strategy here should be to secure the property at a discount (closer to £290k) by leveraging the obvious need for damp proofing and full modernisation. If acquired at the asking price, the margin remains acceptable but leaves less room for contingency. We recommend a "pragmatic" refurbishment approach—high impact, medium-cost finishes—to avoid over-spending. If the seller is open to negotiation, this could be a successful, though not exceptional, flip. Avoid if structural damp is found to be significantly worse than visible surface issues during survey.
Proceed with caution. Recommended primarily if purchase price can be negotiated down. Focus on strict budget control during renovation to maintain a 7.1% ROI.