Long-Term Suburban Hold

Project Manchester was a long-term investment in Greater Manchester, focused on securing a high-quality, low-maintenance family home in a strong suburban location and letting it to a stable, long-term tenant. The property was acquired at the start of COVID-19 period, where I negotiated a strong deal directly with the developer on a brand-new three-bedroom home. A modest £10,000 cosmetic refurbishment was carried out to elevate the finish to my usual standard and further strengthen tenant appeal. The property is now fully let to a long-term tenant, delivering steady, low-friction cash flow, while also benefiting from significant capital appreciation, with the property currently valued at £300,000. This project reflects my core strategy: use sensible leverage, buy quality assets, let to strong tenants, and hold for long-term income and growth.

The Numbers

• Purchase Price: £229,000

• Refurbishment Cost: £10,000

• Total Project Cost: £239,000

• Mortgage: 75% Loan-to-Value (LTV) on purchase
  → Mortgage Amount: £171,750
  → Cash Invested (Deposit + Refurb):
  Deposit: £57,250
  Refurb: £10,000
  → Total Cash In: £67,250

• Current RICS Value (Jan 2026): £300,000

• Monthly Rent: £1,600

• Annual Rent: £19,200

Returns

Gross Return on Cash Invested (Return on Capital Employed)

£19,200 ÷ £67,250 = 28.55% gross

This highlights how sensible leverage, combined with buying well and light refurbishment, can significantly amplify returns on invested capital.

Equity Position (Pre-Refinance)

• Current Value: £300,000

• Mortgage (approx): £171,750

• Equity: ~£128,250

Against an initial cash investment of £67,250, this project has built a substantial equity position while continuing to produce consistent rental income and remains well positioned for a future refinance to recycle capital