Rental Income net of water, gas, electricity: £14,040.00 per annum
Management – £1,600.00
Mortgage – £3240.00
Net Income – £9,200.00
NET RETURN ON INVESTMENT: 14.52% per annum
Within this fully licenced HMO all rooms are all completely compliant to size, fire and also safety regulations.
Fully refurbished to a very high standard. All bedroom and living areas include wi-fi and hardwired broadband. Newly, totally furnished with new floor coverings throughout. The bedrooms include a full student package, double bed, desk, wardrobes, drawers, bed side table etc.. The property has been full since it\’s conversion 8 months ago and is also completely booked once again for the new term in September 2019. This unit has a brand new kitchen, titled and inclusive of all electrical appliances. There is a large separate dining living area and 3 sizable self contained bedrooms. There is also a new fully tiled modern bathroom.
Salford has recently brought in article 4 regulations which means that there can be no more change of use from residential to multi-let without full planning permission. This property is exempt from further planning permission as the HMO conversion was done prior to the November 2018 deadline and the council HMO certificate confirms this.
The main selling point of a property of this nature is our build model. The purchaser can keep the design as a 3 bed earning the excellent returns as shown above, or it can be changed at anytime to 4 bedrooms. This can be done reasonably inexpensively and without further reference to the planning office. Should the purchaser decide to carry out these changes we would be happy to project manage the work. Having completed over 80 units within the last 2 years, all of which are fully rented via our own unique marketing department we can confidently predict that the returns would be as follows:
4 Bedroom – 2 bathrooms
Rental Income net of water, gas, electricity: £18,720.00 per annum
Management – £2,080.00
Mortgage – £3240.00
Net Income – £13,400.00
NET RETURN ON INVESTMENT: 21.11% per annum
Most of our clients rent the property out as a 3 bed for the first year and using the profits to fund the 4 bed conversion.
Throughout the Manchester and Salford area there is a huge demand from students, young professionals and graduates alike. The 3 main universities in Manchester and Salford have the largest intake of students in Europe. Whilst the city centre, media city and teaching hospital attract short term contracted workers who need quality accommodation.
Due to Article 4, the growing demand far out weighs the supply especially in the Salford student area. This situation can only escalate as there is now only a select amount of properties that are compliant and have obtained the correct licence.
Both 3 and 4 Bedroom properties in Salford have already seen a significant increase in sales prices and if you follow the trend in other areas where Article 4 has been introduced you can expect significant ongoing increases in this type of property value as the effects of the new regulation bite.
For further information contact Yvette on 0161 230 3367