Tuesday, 17 May 2016

Three Bedroom St Michaels Court Apartment - 8.3% Gross Yield as BTL or 24% As Serviced Accommodation!

This 3 bedroom, top floor apartment in the popular St Michaels Court development in Ashbrooke looks to offer decent BTL returns or could lend itself to Serviced Accommodation (subject to being allowable in the terms of the lease & meeting other important criteria)

As a standard Buy to Let, this will rent out at £550 - £595 following a lick of paint so based on the lower figure and paying the Offers In Excess Of £79950 it will return 8.3% Gross Yield

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I mention Serviced Accommodation as this is one strategy being put forward by creative property investors as a way of combatting the recent anti-Landlord tax measures due to the spectacular returns that are possible

I'm no Serviced Accommodation expert, but I thought I would suggest this as I can see that there is a similar property in St Michaels Court commanding at least £105 per night 

http://www.booking.com/hotel/gb/st-michaels-court-apartment.en-gb.html?aid=318615 

The one advertised on booking.com appears to be only available on selected weekends (perhaps they have secured a contractor or professional to rent it during the week) but there's no reason it couldn't be rented out 365 days a year - so based on a realistic 50% occupancy (I'm advised those in the know base their figures on this) and the £105 nightly rate it will return over £19,000 income each year which equates to 24% Gross Yield

Clearly there is more work (and cost) involved in furnishing and servicing this apartment based on this strategy but given the returns many may consider it worthwhile


It's also vital that you gain understanding about whether this is permissible under the lease and you also need to be aware that standard BTL mortgage lenders will not support this type of rental so you will need to pay cash or look for alternative sources of finance (which are out there)

I wouldn't advise looking at a Serviced Accommodation strategy without undertaking specific training - the consistently excellent Progressive Property do offer courses covering this in some detail

Anyway, it's being sold by Dowen in Sunderland so click the link for details and call them if you're interested https://www.onthemarket.com/details/2609531

Call me if you'd like to discuss this in more depth (although as I've admitted above I am certainly not a Serviced Accomodation expert) - call 0191 567 8577 or email neil.whitfield@belvoirlettings.com

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