When you consider that one of them being offered now was bought new for £187,000 in 2007 and they rent out for between £650 - £700pcm it's not hard to see why the receivers may now be involved...
What doesn't work as an investment if you paid nearly £190,000 is a very different prospect for £80k...
Around £80,000 is the going rate (there have been 7 sales since 2009, all last year and all with prices ranging from £78,000 - £85,000) and based on this and a conservative £650pcm rent you'll achieve 9.75% Gross Yield
Four of the five are currently tenanted and the annual rental amounts quoted on the sales particulars are roughly in line with the above
Before bidding you'll need to know and accept that you'll be renting to International Students with all the Pro's and Con's this entails, that the service charges are ludicrously high and not content with that, the communal managers are now finding innovative new ways to separate apartment owners from their rental incomes (recently introduced change of tenant/renewal fees, annual services on electric boilers...!?) so the Net Yield will be significantly lower
Click here for details http://www.zoopla.co.uk/for-sale/details/35760137?tmad=c&tmcampid=35&utm_campaign=buy-alert&utm_content=contact-type-listing&utm_medium=email&utm_source=alert#2xCKhGfXdwIhxgKK.97
Call me on 0191 567 8577 if you think you're even a little bit interested as unless you're a current Echo 24 owner I would advise it will be worth a frank discussion before going any further - there is clearly a return to be made but this is not going to be everyone's cup of tea and given we manage a number of Echo 24 apartments I'll be able to give the 'warts & all' lowdown to allow you to make an informed decision