Assetz are proud to release a selection of luxury city centre apartments, located in the capital of central Lancashire, Preston. Home to 90,000 jobs, the city boasts the largest economy in Lancashire and also contains the sixth largest university in the UK, with over 35,000 students.
We have secured a selection of apartments offering gross yields of 8.2% and NET yields of 6.8%. All properties are heavily cash positive by £3,408pa, after all costs including mortgage costs. All this, coupled with the significant growth potential Preston has to offer, provides a superb opportunity not to be missed.
Worked Example:
670 sq.ft. 2-bed apartments with parking
Current Sales price £129,950
Assetz are pleased to present these 4/5 bed houses perfectly situated just 2 minutes' walk from Manchester University and Manchester Royal Infirmary.
An ideal hands-off investment, these new-build properties, exclusively available to Assetz, come fully-tenanted and fully-furnished. Due to their perfect location in an incredibly robust rental area, they produce rental income of over £16,000 annually. With prices at just £215,000, these properties are an investment opportunity not to be missed.
Perfectly situated to attract students, medics and city dwellers alike, this development is within easy reach of the universities, the city centre and rail/metro links.
Distances:
Manchester University - 0.3 miles
Manchester Royal Infirmary - 0.3 miles
Manchester Metropolitan University - 0.7 miles
Oxford Road Train Station - 0.9 miles
Royal Northern College of Music - 0.5 miles
Assetz are delighted to present this new launch of unique luxury apartments from just £97,600. A place to work, live and play in an artistic, inspirational, purpose-built media hub, this development is the hottest property currently available in the UK.
With only limited residential opportunities available within the BBC relocation site, and over 50% sold, now is the time to buy.
With many of the BBCs rosta of celebrities already purchasing here the buzz has never been louder.
Studio/1-bed starter homes from only £97,600
Excellent features of this investment include:
Waterside views
Fully-fitted kitchens with appliances
Hardwood flooring
Up to 80% LTV mortgages available*
Open air piazza for concerts and events
Great selection of local restaurants and bars
Excellent transport links into Manchester city centre
*subject to status
These apartments are complete and ready now so contact us today to see how you can be part of the UK's most exciting development.
With a selection of sumptuous show apartments now ready there has never been a better time to view. Viewings are available Monday to Friday 10am - 5pm with our specialist property consultant.
This is the best investment we have seen in London for a long time, the units are selling at the list prices below and give a great opportunity for further capital growth being on the more desirable and affluent side of the Olympic Park.
Assetz are delighted to present this superb, high-specification investment opportunity in a great residential location in Leyton, overlooking public gardens and stunning views beyond to the Olympic Park.
Our excellent contacts and vast wealth of investment experience have enabled us to source this prime London property with exclusive discounts for Assetz clients. Giving over £40,000 instant equity, these off-market, 1-bedroom apartments are amongst the hottest properties currently available in the UK.
Viewing Days: Call or enquire to book an appointment
This is a small, new-build development of just 13 apartments in a residential village. All apartments are hugely discounted due to this being a bank forced sale and we have exclusivity on a number of apartments within the development at a highly discounted price for our investors.
Apartments in the area are scarce creating huge rental demand from young professionals, with local agents already having a waiting list of tenants. Set in a prime location, the development offers professionals an accessible commute to Manchester, Liverpool and Warrington.
2007 price: £95,000
Recently reduced to: £80,000 (currently being sold at this price)
Our prices from just £60,000. Thats a discount of 37% from the original list price and 25% from the recently reduced price. Investment Summary
Brand-new and completed with 10 year build guarantee
Tenants being lined up by local letting agents
Short distance from the local town centre
Gross yields up to 9%
Cash positive by up to £2,912 pa after all costs including mortgage interest
With rents of £425 - £475 pcm you can now buy a high-yielding investment property at an unbelievable price!
We are delighted to have secured a stunning new scheme in the heart of Salford Quays, home of the new BBC headquarters. The area will see the development of a £400 million media and creative hub on a 200 acre waterfront site, with a total of 7 million square feet of development including the new home of BBC North, purpose-built studio and production facilities as well as apartments, a hotel, bars, restaurants and public open spaces.
The BBC will move around 2,500 staff members to the area along with five London based departments. The area will house one of the largest high definition studio facilities in Europe and will create up to 10,000 jobs and add £1 billion to the regional economy over 5 years.
Incredibly strong rental demand from the BBC staff, as well as huge capital growth prospects are expected due to the new media headquarters making this one of the strongest long-term investments in the UK with benefits that no other location will have.
Some of the excellent features of the investment include:
New BBC headquarters is the UKs first purpose-built, creative media hub
The arrival of the BBC is expected to attract other media, broadcasting and filmmaking companies to the area
Creation of up to 10,000 jobs in the local area and £1 billion boost to the regional economy over 5 years
Severe shortage of rental accommodation - just 2 residential developments on first phase
The developments piazza will include a hotel, restaurants, bars and public open spaces to accommodate 5,000 people
Space for 1,150 new creative and related businesses
Over £400m of private investment within the first phase
New metro-link station to be built adjacent to the development linking it to Manchester city centre
Selection of luxurious, high-specification apartments with designer fittings
Average valuation = £2.7 million
Cash offers of around £2 million or below will be considered
You are being sent this e-mail as you are registered as an off-market investor with Assetz for Investors.
This is an extremely rare opportunity to own a luxury 6-bed waterside property in the heart of the Devon countryside. This property is one of the most outstanding waterside properties in the area having been described by the press as Iconic, Historic, Landmark, Stunning and Spectacular. This unique property stands out due to its high level of quality and its balance between old and new and rural and nautical. The lifestyle offered by this property is unsurpassed and this is the first time in over 30 years that this property has come back onto the market.
Six bedrooms, five en-suite
Recently renovated to the highest standards
Computer controlled lighting and very high specifications of technology, high-definition TV cabling to rooms, home network
Eco home with high degree of energy efficiency, solar panels, argon filled window units and the most energy efficient boiler
Take two steps out of the back door onto your boat and at high tide go all the way out to sea
Appears in a number of books on the region
Prime second home property with great potential for holiday let rental income. Property rented out for one week in July this year at £4,500 and for another week at £4,000.
The property has been described by the press as Iconic, Historic, Landmark, Stunning and Spectacular.
Recent valuations:
Savills thought its value was £2.5 - £3 million in July 2008
Top Local Agent thought its value was £2.9 million in July 2008
Knight Frank thought its value was £2.7 million in March 2008 (£2.5 million for house £200K for garden)
Average valuation = 2.7 million
Cash offers of around £2 million or below will be considered
Cash buyers preferred for fast completion
Bridging loan facility may be available
The property is located in a village described in the tourist guide as particularly picturesque with two waterside pubs and a further two pubs a comfortable walk away. It is in a prime postcode / region South Hams. A recent press article suggests that prices in the area rose by 16% between July 2008 and July 2009.
Please revert to Stuart Law, stuart@assetz.co.uk, in the first instance.
We are proud to offer our investors a unique opportunity to acquire a choice of ready-to-go apartments across some of the UKs biggest cities. We have sourced a limited number of highly discounted apartments direct from the developers. Perfect for the growing young professional market, these fantastic apartments can be found in and around the city centres of Birmingham, Leeds, Manchester and Sheffield.
With developers wishing to close on current projects and move on to the next, all apartments are being offered fully-tenanted, in prime locations and even fully-furnished. Offering high yields, cashflow-positive and coming fully-managed on your behalf, investment opportunities such as these are becoming a rarity. Why not take this opportunity to add one of these fantastic investments to your portfolio? We have an investment to suit every pocket and every budget.
Choice of brand new, high quality apartments in Birmingham, Leeds, Manchester & Sheffield
High yields
Highly discounted
Strong capital gains opportunities
Hands-off
Ready-to-go investments
Tenanted
Strong rental demand
Close proximity to city centre bars & restaurants
Perfect for the growing young professional market
Cashflow-positive
Prices from £60,000 - £258,000
Please enquire for some of the best opportunities of 2009.
We are pleased to have negotiated an exclusive opportunity to purchase a range of spacious two-bedroom apartments in close proximity to Manchester city centre at a discounted price currently 15% below a recent RICS valuation. All apartments are being offered with a secure underground-parking space.
This area is undergoing a huge investment programme, with Manchester Metopolitan University relocating its Didsbury and Rusholme campuses to a new £120 million super-campus, whilst the BBC/Salford University MediaCity campus is being constructed and developed in nearby Salford Quays. With student numbers increasing for the 27th consecutive year and the new employment prospects being developed within the immediate vicinity, these ready-to-go apartments will not be available for much longer and so you are advised to snap one up whilst you can.
See associated documents and download the Birley Fields Campus Proposal for further details.
High-specification, 2-bed apartments close to Manchester city centre and university campuses
Prices from £108,000
Price includes full furniture, all white goods, flooring and a secure underground parking space
Achieving rents of up to £650 pcm
Gross yields of up to 7.2% and NET yields up to 6.3%
Cash positive by up to £3,624 pa
E-Serve valuation of £127,500 in June 2009
Strong rental demand from students and young professionals
On-site management service
Complete and ready now Worked Example
2-bed apartment (700 sq.ft) - £108,000 including parking and white goods
Deposit: £37,800
Cash-flow
Rent: £650 pcm
Mortgage: £269 pcm (65% ltv @ 4.60% 2 year tracker)
Service charge and ground rent: £79 pcm
Cash positive by up to £302 pcm or £3,624 pa
Located in a prime location on Chapel Street, only a few steps from Deansgate in Manchesters historic Blackfriars area, this dramatically modern development comprises a unique collection of stylish apartments designed to offer contemporary city centre living without compromise.
Each apartment is ideal for an investor on a buy-to-let basis with excellent rental potential due to the schemes fantastic location and this coupled with immediate equity, make this a great investment. The apartments are currently tenanted and fully furnished and offer our investors an immediate revenue stream.
We have negotiated a substantial discount meaning you can buy a large 532 sqft, 1-bed apartment with balcony in Manchester city centre for just £98,000 currently rented for £6,300 pa giving a superb gross yield of 6.5%. There is scope to increase rents by up to 10% to reflect current market conditions and acheive a gross yield of 7.3%.
Spacious 2-bed, 2-bath with balcony, 735 sqft apartments are also available for just £138,000.
Investment Summary
Prime Location in Manchester City Centre
Long 999 Years Lease
Low Service charges
1-beds with balcony priced at £155,000 but available for our clients for just £98,000
2-beds with 2 baths and balcony were priced at £222,000 but available for just £138,000
75% LTV mortgages available
Complete and ready now
1-beds will rent for up to £625 pcm*
2-beds will rent for up to £725 pcm*
* Confirmed by local letting agents
Financial breakdown
532 sq.ft 1-bed apartment with balcony - £98,000 (list price is £155,000)
Cash flow
Rent - £625 pcm
Service charges + ground rent only £70 pcm
Mortgage - £337
Cash positive by £218 pcm or £2,616 pa
As these apartments were tenanted more than 6 months ago, more finance options maybe available as they are not classed as "new build".
These two bedroom apartments, located close to Manchester city centre, would be ideal for any first time buyer looking to get on to the property ladder at a very affordable price. Newly built with fitted kitchen and bathroom and you also have a secure parking space included within the purchase price.
Specification details:
Spacious layout - approximately 700sqft
High spec kitchen with fitted appliances
Voice link door entry system
Secure parking space included
Ground rent £200pa
Service charge £750pa
(Master en-suite included on selected units)
To keep things as hassle free and stress free as possible, we can help you furnish your new home at minimal cost to you (depending on your requirements). We can arrange for a no obligation quotation which will be very competitive and they can deliver and install within 48hrs.
On the outskirts of Manchester city centre, these apartments are just approximately 15/20 minutes walk away from the hustle and bustle of city life including the vast array of restaurants, bars and nightlife; not to mention the superb shopping venues. Deansgate train station is also within walking distance; Manchesters University campuses are just 1.5 miles away and the apartments are also within easy reach of the M60 and M56 motorways.
The apartments also offer excellent rental potential so if your circumstances change or you choose to upgrade, you could let your apartment out for around £600pcm (based on current rental valuations - May 2009).
*Photos and specifications are included on this site for guidance only and are not intended to be contractual or binding. All photographs shown are for illustrative purposes only. For example, the furniture displaying in these photos is not included in the sales price. For a full breakdown of what is included in the sales price please ask your property consultant.
Estimated £18,200pa based on 37 week rental. There is potential to rent out the property for 52 weeks of the year as specialist UK trips such as fishing, walking and horse riding are also offered.
Three bedroomed semi-detached house which is set in landscaped gardens with off road parking. The property boasts a hallway, living/ dining room, kitchen, utility room, three bedrooms and bathroom.
The aim of these properties is to keep your bills to a minimum and reduce your carbon footprint and with the super insulation, revolutionary build system and low energy lighting, this shouldnt be a problem!
Angleseys blend of unspoilt beaches and ever changing coastline, encircling a variety of gently undulating inland landscapes and waterscapes, provides a getaway unrivalled by any.
The location of the property is convenient and offers easy access onto the A55 expressway with its excellent road links to the sea port of Holyhead and along the North Wales coast into Cheshire.
3-bed detached
Eco-friendly holiday home
Set in landscaped gardens with parking for two vehicles
Estimated rental income: £18,000 pa
Advertised price: £299,000
Our guide price: £200,000
Possibility to negotiate a guaranteed rental income for the first 2 years.
Finance packages are available on these properties.
Three double bedroomed detached house which is set in landscaped gardens with parking for two vehicles. The property boasts a hallway, spacious cloakroom, living room, dining kitchen and as well as the three double bedrooms, there are two fully tiled bathroom suites.
The aim of these properties is to keep your bills to a minimum and reduce your carbon footprint and with the super insulation, revolutionary build system and low energy lighting, this shouldnt be a problem!
Buying a high-income holiday home in the UK has never been better value! Using our reputation and buying power, we have achieved great discounts on these award-winning holiday homes in North Wales.
These eco-friendly, energy efficient and hands-off holiday homes on the Isle of Anglesey offer fantastic income with low running costs. An ideal weekend retreat, or perfect for longer stays, you could achieve yields of up to 10% (gross) whilst making the most of your home-from-home. The rents are guaranteeed for two years.
Proven occupancy rates are 70% and you could benefit from personal use at your property. The houses will be managed by an excellent company which will offer a host of specialist holiday packages, attracting enthusiasts of golf, fishing, walking, sailing and much more. These properties have recently been granted a 4-star tourist award - an accolade which we are sure will enhance the projected yields.
Angleseys blend of unspoilt beaches and ever changing coastline, encircling a variety of gently undulating inland landscapes and waterscapes, provides a getaway unrivalled by any.
The location of the property is convenient and offers easy access onto the A55 expressway with its excellent road links to the sea port of Holyhead and along the North Wales coast into Cheshire.
Eco-friendly, 4-bed, 2-bath holiday home
High specification build and integrated garage
2000 sq.ft.
Fully furnished
4* tourist board award
Gross yields of up to 10%
Advertised price: £349,000
Our guide price: £265,000
Finance package available
There is potential to rent out the property for 52 weeks of the year as specialist UK trips such as fishing, walking and horse riding are also offered.
Four bedroom detached house which boasts an extremely low carbon emissions/footprint. This eco-friendly home is constructed to a very high standard which includes state-of-the-art heating system and continental standard insulation. The property also offers lounge with dining area, fitted kitchen/ breakfast room with appliances, conservatory, four double bedrooms with the master bedroom having an en-suite and separate five piece main bathroom. There is an integrated garage, driveway and manageable garden.
Buying a high-income holiday home in the UK has never been better value! Using our reputation and buying power, we have achieved great discounts on these award-winning holiday homes in North Wales.
These eco-friendly, energy efficient and hands-off holiday homes on the Isle of Anglesey offer fantastic income with low running costs. An ideal weekend retreat, or perfect for longer stays, you could achieve yields of up to 10% (gross) whilst making the most of your home-from-home.
Proven occupancy rates are 70% and you could benefit from personal use at your property. The houses will be managed by an excellent company which will offer a host of specialist holiday packages, attracting enthusiasts of golf, fishing, walking, sailing and much more. These properties have recently been granted a 4-star tourist award - an accolade which we are sure will enhance the projected yields.
Angleseys blend of unspoilt beaches and ever changing coastline, encircling a variety of gently undulating inland landscapes and waterscapes, provides a getaway unrivalled by any.
The location of the property is convenient and offers easy access onto the A55 expressway with its excellent road links to the sea port of Holyhead and along the North Wales coast into Cheshire.
UK Distressed New-build Stock now available at substantial discounts to current market value/original land-registry sales price. These are brand new, high-specification apartments in contemporary developments in major UK city centers. Due to our bulk purchasing power we provide you with the type of discounts that are only available to bulk cash buyers purchasing over 100 units at a time! Typical discounts are 20-30% off the actual current selling price (not valuations or asking prices).
We specialise in sourcing carefully researched and selected high-income and heavily discounted new-build apartments with typical gross yields of 7% - 8%, no maintenance issues, and extremely healthy cash-flow. We concentrate on stock units where the remainder of the building is already sold and occupied meaning little competition from fellow investors.
Just register with us now to join the mailing list for the next superb distressed sale properties.
By virtue of our unrivalled reputation in the market and a trading history of over 10 years, we have built up a reliable supply of high-quality developments for our clients that offer excellent discounts, free equity, and high yields meaning all properties are heavily cash positive immediately.
5 reasons to invest in NEW-BUILD over existing property
Maintenance - This can be time consuming and very costly on older houses both internally and externally. New build has a 10 year build guarantee and a maintenance team behind it.
Lettings speed - There will be next to no building work starting in major city centers for at least 2 years, which will lead to a greater shortage of quality apartments leading to an increase in rents.
High yields - We are able to get much better yields on apartments than on houses even after paying a service charge and ground rent.
No costly void periods - Houses tend to be in villages or towns where longer void periods of 4-6 weeks are not uncommon.
Hands-off and hassle-free - Lettings, furniture and legal's can all be done from your living room or office. No regular maintenance calls.
Typical NEW-build property example - Luxury city centre 1-bed apartment
Peak pricing £145k, Recently reduced to and selling at £125k, Assetz price £94,000
35% discount of peak 2009 sale price, 25% off current sale and valuation price
35% Deposit - £32,900
Assetz fee - £3,500 + vat
Cash-flow
Rent - £575pcm
Mortgage - £221pcm (65% LTV @4.35% tracker)
S.Charge + G.Rent - £87 pcm
Cash positive by £267 pcm or £3,204
Return on cash invested - 8.65%,
Gross yield - 7.36%
NET yield - 6.4%
Our properties offer Below Market Value (BMV) prices - typically between 20% - 30% off the current sales price achieved.
We progress the entire transaction for you including the offer, finance, legal's etc.
We negotiate the absolute rock bottom price for our investors because our source of income is the finders fee. I.e we don't get paid by the vendor so the lower the price for our clients the better.
We recommend specialist letting agents who have already rented numerous apartments in the particular development where you are buying. They will tenant your property almost immediately after completion.
Through bulk purchasing power we are able to source discounted furniture packs from just £1,300 + vat.
In some instances we provide you with already tenanted apartments that completed 6-12 months ago.
Lower risk
Buying under market value investments can be one of the most effective ways to protect yourself against investment risk, just consider:
The market would have to drop by a significant amount for you to begin to lose money
Properties are in excellant rental locations, meaning voids are usually minimal.
You are not just relying on the future capital growth, but rather building upon the equity already gained on purchase.
If you choose to sell your investment you could still sell at a price below the Open Market Value (OMV) making profit and still make the property attractive to buyers.
We specialise in sourcing carefully researched and selected high income and high discount below-market-value (BMV) Distressed/Repossession properties for our clients.
This is a hands-off service for our professional clients where we carry out all the sourcing, vetting and purchase process including and refurbishment works required. Just register with us to join the mailing list for the next available distressed sale properties, pre-vetted for quality and letting income and in many cases, pre-tenanted.
Pre-Repossession, Sale and Rent-back and Pre-Auction property are now available from us at substantial discounts to market value/ original land-registry sales price. These are houses and apartments across the whole of the UK. Typical discount to current market value is 25-40% and due to them being older than 6 months to 12 months old, mortgage finance is relatively easy to obtain.
We have spent the last few months building up a reliable supply of high quality and carefully selected distressed property sales for our clients that offer excellent discounts, free equity, simpler mortgages than new build and high yields meaning in many cases these properties are cash neutral or cash positive in year one.
Our properties offer Below Market Value (BMV) prices - typically between 25% - 40% BMV.
We progress the entire transaction for you including the offer, finance, legals etc.
Our distressed vendors may be:[list] Private vendors experiencing financial hardship
Private vendors in a chain,emigrating,separating
Distressed developers looking for a quick but confidential sale - forced by their bank
Pre-auction repossessed property
Property on pre repossession order lists (prior to final court order)
Sale and rent-back property investment opportunities where the distressed homeowner wants to rent back the property (perfect tenants!)
All of the above will typically provide a 25% to 40% discount to current market value
Typical bargain property puchase example: (true example, currently available)
Discount: 40% BMV
Property: Top floor, 2-bed apartment with parking and balcony
Location: Birmingham city centre
Reason for sale: Stock units (build complete)
Developer list price: £179,950
Price to investor: £107,970
Valuation rent: £725 pcm
Based on around an 70% LTV on an interest rate of 5.69% this would make the property cash positive by £290 p.c.m (even after service charges). Thats over £3,480 per annum cash positive AND youve got a safe amount of equity within the property
This apartment is walking distance to the train station and town centre.
A typical London repossessed property was last purchased in February 2004 for £225,000. The homeowner defaulted on their payments and the lender has taken action. In some cases the property requires work and the price must reflect this. To encourage a smooth and fast sale the property is often advertised at a reduced price for quick sale.
The example (real) property above was advertised for £167,950 by the agent and following extensive research to validate the quality of the property, our offer of £152,000 was accepted.
The actual price paid by the investor was £152,000 versus £197,000 (current valuation) that is a 23% discount to open market value, for a quality property in London that requires no work.
Before offers are placed we establish the achievable rent in writing from an independent letting agent and we are typically seeing 7% to 12% gross yield compared. This ensure that not only have we sourced you a large discounted property, but it will be cash positvie by a large amount as seen by the worked examples above.
Lower risk
Buying under market value investments can be one of the most effective ways to protect yourself against investment risk, just consider:
The market would have to drop by a significant amount for you to begin to lose money
Properties are in excellant rental locations, meaning voids are usually minimal.
You are not just relying on the future capital growth, but rather building upon the equity already gained on purchase.
If you choose to sell your investment you could still sell at a price below the Open Market Value (OMV) making profit and still make the property attractive to buyers.
Do you have a very specific type of property or location you are looking for?
We offer a bespoke distressed sourcing service, ideal for our more serious professional investors. An upfront £250 + VAT sourcing fee is required which is refundable should property not be sourced within 60 days. A further 2% + VAT (of the property purchase price) would be payable once a suitable property has been sourced.
If its the bespoke service you are enquiring about start the enquiry with "Bespoke".
The very high standards of construction and finish naturally comply with NHBC standards as well as current local and national building regulations.
We have one beautiful 3-bed house comes with £9,000 guaranteed rent return for the next 3-4 years. The owner will also benefit from being able to use the lodge plus many other resorts, both here and abroad (that the operator manages) for up to 4 weeks a year.
£237,000: 2007 market value with comparables on land registry
£180,000: Assetz negotiated price
£4,000 + VAT: Assetz fee
£135,000: 75% LTV Mortgage available at 4.99%
Cash-flow
£750 rent per calander month
Vs
£561 interest payments
Cash positive by £189
Only one left!
Some additional fetures available on-site and locally:
Luxurious and newly renovated Leisure Centre, including heated swimming pool with spa bath, sauna, steam room, solarium, full-size snooker table, fully equipped gym, table tennis
Brand new bar and restaurant, specialising in local produce and drinks
Reception staff available to help or advise guests on how to make the most
of their day, such as tips on where to find the most delicious local food
Babysitting services by arrangement[/list]
This is one of the best cash-positive income-generating investments we have made available to our clients for some time. These houses are in top letting areas across the country, that are tenanted and newly refurbished or newly built.
Properties are located in top letting areas including Fallowfield and Rusholme.
High-yielding, refurbished houses in prime areas with demand for student accommodation booming and student rents rising significantly
Gross yields of up to 10%
Freehold title with no service charges.
Property can be further enhanced to meet the descerning investor.
Hands-off letting and full management service with each property
All houses are let on a single AST contract with parents acting as guarantors - If one student pulls out the others on the agreement must pay the rent shortfall
Commercial mortgage rates apply to this type of residential investment - typically 60-65% LTV available (subject to status)
Typical rents of £67-£85 per room per week
Fantastic capital and rental growth in these student and young professional areas of Manchester
The houses are rented and managed on your behalf by a very experienced student letting agency and many already have tenants signed up before they are completed. Rents per room are typically £65-£80+ per week and the properties show a surplus over the mortgage payments in the first year making the investments cash flow positive (see typical investment analysis further down).
Decoration or refurbishment is carried out where the opportunity to optimise rents exists. Even if property is currently tenanted some works may still be recommended and it will often be possible to do this without the tenants moving out.
Some properties are recently refurbished or are indeed brand new and therefore need no work.
The purchase price normally includes furniture and white goods.
We follow a critical path to ensure maximum rents are achieved per room. Often additional bedrooms will be built in the loft space and elsewhere in the house to maximise rental income from the property and deliver additional property value - accommodation extended where the opportunity to improve rents exists within the original property
The investor can acquire the property with all of this work carried out.
What works are required to make the property compliant?
We work with the specific HMO compliance officers and advise on specific works so that costs are managed.
This is an excellent investment opportunity with renovations (where required) carried out to a very high standard. We have only a limited number of properties available for purchase each month and we operate a waiting list.
Typical Investment Worked Example - 5 Bed House in Fallowfield Manchester Prime Student Area
Purchase Price £220,000
Mortgage at 65% LTV (subject to status)£143,000
Deposit £77,000
Stamp Duty £2,200
Our Finders Fee £4,400 + VAT
Total Investment - £83,600
Gross rental Income £18,000 pa (5 rooms X £75)
Net rental income £15,000 pa (after management and lettings costs)
Mortgage interest £7,865 pa (assuming an interest rate of 5.5%)
Profit - £7,135
Demand is significant for these properties but there are only a limited number available per month so please enquire quickly in order to acquire one of these units.
The perfect low hassle property investment that produces a reliable income from day one. This is a perfect "Generator" for any property portfolio.
4 and 5-bed apartments, all en-suite.
Fully furnished and finished to the most luxurious of standards.
Prices from £204,541 including furniture for a 4-bed.
The scheme has been 100% tenanted for the last year and is already fully tenanted for the 2009 / 2010 academic year.
5-beds producing atleast £19,307 pa Gross Rental Income. Some units producing £20,210 pa.
Next to Sheffield University engineering faculty.
Strong, reliable letting demand.
Student rent growth proven at between 3-5% per annum.
Fully managed on site for just 17% + VAT of the rental income in year 1.
Complete and ready now = income producing immediately.
No need for extra costs on furnishings or white goods.
5 year fixed rate mortgages available.
Capital Allowances (tax rebates) are usually available on student complexes. Claimable through the Inland Revenue during the next few years, this could offer up to a further 2-3% of the purchase price which could be used to reduce your debt quicker.
Worked Example
4-bed apartment (1,055 sq.ft) - £206,919
35% deposit - £72,422
Stamp duty - £2,069
Total investment required - £74,491 (not including mortgage or legal costs)
Cash-flow
Rent - £15,312 pa**
Mortgage - £7,801 pa (65% LTV @ 5.8% fixed)
Costs - £3,512 pa inc VAT
Cash positive by £3,999 pa after all costs
*Rents are charged at £86 per week per student for 44 weeks and £43 per week per student during the summer period (if taken). A conservative allowance of 33% of tenants opting for summer rents are included in the cash flow calculations and the investment analysis on the Investment Calculator tab.
A 65% interest only mortgage has been used for the cash flow calculations however capital repayment mortgages are also available up to 75% LTV on this scheme. The interest rate applied to both the interest only and capital repayment mortgage deals is fixed for 5 years at 5.8%.
We have used this 65% interest only mortgage as the default for the investment analysis found on the Investment Calculator tab.
For cash flow and investment analysis using a 75% LTV capital repayment mortgage please ask your property investment adviser.
The costs involved for the full management of this property are a 17% + VAT management charge, £250 +VAT letting fee and £250 ground rent. These costs plus VAT have been factored into the above cash flow projections. In fact, in the first year it is unlikely that you will have to pay the letting fee as the properties are already tenanted but this cost should be factored in for future cash flow. We have applied a 19.55% management charge in the investment analysis on the Investment Calculator tab in order to factor in the VAT cost.
This property provides extra security as no voids are likely due to the normal pre-let annual process for student schemes like this and due to the fact that demand outways supply for this type of accommodation.
"We expect to see continued growth in rents over the next 12 months given that many private accommodation blocks are fully booked for the next academic year (2009/10)." Savills Spotlight on Student Housing Report May 09.
Last year the Savills report on student accommodation indicated a provable increase in students rents of 3-4% outside of London. This years report (issued in May 09) indicates that this improved again the following year to a growth of 5%. The full report is available to download from the Associated Documents section of the Details tab.
Please click on the Investment Calculator tab to view future cash flow analysis and graphs. You will notice that we have used a conservative rental growth assumption of 4% for this analysis.
For a more indepth investment analysis of the property our Portfolio Planning Software is available. Please enquire for more details.
