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Property & Commercial House For Sale

PROFITABLE RECESSION BEATING PROJECT NW CITY CENTRE LUXURY STUDENT HMO IN EXCESS OF 18% NET PER YEAR


  • PROFITABLE RECESSION BEATING PROJECT NW CITY CENTRE LUXURY STUDENT HMO IN EXCESS OF 18% NET PER YEAR
Description
Price : £74,000
Type : Sell
Date : March 16, 2020
Location :Salford

Property type House

Number of bedrooms 4

PROFITABLE RECESSION BEATING PROJECTS

Net returns up to 18.45% per annum !!!

WITH A MINIMUM OF ONLY £74,000 INGOING REQUIRED !!!

We are by far the LARGEST INDEPENDANT student accommodation conversion company in the North West, with in excess of 171 SUCCESSFULLY COMPLETED and rented projects. We have many current projects in various locations.

Christchurch St Preston 4 Bed

18.45% RETURN ON CASH INVESTED NET OF OVERHEADS INCLUDING MORTGAGE PAYMENTS

FOR CASH purchases 10.13% NET YEILD

Financials

4 Bedroom – 2/3 Bathrooms

Only a 10/11 minute’ walk to the University with a huge student population & only 7 minutes to the City Centre.

• Purchase Price: £120,000.00

• Deposit: £24,000.00 – Mortgage (Up to 80% LTV available subject to status and criteria)

• Conversion/Build: £21,500.00* approx. (subject to further onsite visits)

• Set up costs/ Design & Build Fees including VAT – £15,000

• Legals – £1,300

• Stamp duty – £3,600

• Survey – £450

• Furniture and flooring packs can be purchased at an additional cost – £7,261.00

Total Project Cost: £169,111.00

Total Cash outlay: £73,111.00

Rental Income: £90.000/ £100.00 PPPW (Ensuite) x 4 net of bills (water, gas, electricity) = £19,760.00 per annum net (based on 4 bedroom – 3 bathroom)

Management: £2,620.80 approx. – 10% + VAT fully managed

Annual mortgage cost/interest: £3,648.00 (based on circa 3.8% rate for an 80% LTV mortgage – subject to status and criteria)

TRUE NET INCOME: £13,491.20 annum

NET RETURN ON CASH INVESTMENT: 18.45% per annum

Looking at the future student accommodation marketplace, we have recently added to our books a significant number of new properties based around the two Universities. WE BELIEVE THAT THE COMING RECESSION WILL GIVE US A GREAT OPPPORTUNITY to increase sales to the right kind of investors.

THE UNIVERSITIES MUST AND WILL CONTINUE THOUGHOUT THE CORONOVIRUS CRISIS. our successful business model creates minimum 4-bedroom student rooms

based in large converted houses. The rooms are built to a HIGH STANDARD AND HAVE FULL UNIVERSITY SPECIFICATION , BROADBAND, FIRE PROTECTION AND MOST OF THEM OFFER THEIR OWN PERSONAL BATHROOM FACILITIES. They have large common areas but are absolutely individual and private. These units can provide a more isolated living space than the high infection risk situation created by the 200-room campus type accommodation blocks which have large busy communal spaces.

We have been informed it is likely, that in an effort to cut down risk of the virus spreading through the student body, the Universities will resort to ONLINE STUDY, BASED WITHIN THEIR OWN PRIVATE ROOMS and linked to tutorials with single lecturers based on small numbers of students. They will cut out the theatre style lectures which are currently attended by 100s of students.

On the economic front, the coming recession is being countered by the recent BANK OF ENGLAND INTEREST CUT. This has confirmed to us that it is the right time to BUILD UP OUR INVENTORY, both for our own portfolio and for our customers. All other forms of investment will obviously reduce in yield whilst ours will remain unaffectedly high. At the same time, the worry of this recession will give us the opportunity to force down the price of our acquisitions.

We are completely committed to this AGRESSIVE APPROACH to the market which has proved to be so successful and profitable during all previous economic recessions. There are two completely undeniable facts about recessions.

1. They always end

2. They always lead to market growth and an increase in property values

• Return on cash invested (banks or building societies) 1.65% PA

• Offshore savings 2% PA

• Government backed bonds and gilts 0.16% PA

• FTSE Index has recently dropped by approx. 9% PA

• (N.B based solely on internet information)

The Preston Units are all City Centre based and within 10 minutes to the main University Campus. Lancaster has two very distinct popular areas because of its position as a Campus University, it is based in its own grounds outside of the City. The Lancaster properties are all within the student accommodation areas either close to the City where the student Union & university transport links are to be found or the other popular area which is within sight of the University itself.

ALL PROPERTIES ARE HANDED OVER FULLY LET, REGULATED AND LICENSED TO LOCAL AND GOVERNMENT STANDARDS.

For full breakdowns and sales information on any of our properties including the recent additions above, please telephone Yvette on 0161 230 3367 or by email

 

Mention https://ukbuyandsell.com/ when calling seller to get a good deal

 


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