Address: Ford Lane, Salford, Manchester, United Kingdom
City: Manchester
Zip: M6 6PE
Country: Rest of Europe
Price: GBP: 27,500
(USD≈40,127)
(EUR≈31,472)
Bedrooms: 1
Bathrooms: 1
|
Square Feet: 140 (13m²)
Square Meters: 14
Status: Active
|
Agent info:
|
|
Full Description:
New Student Scheme Ford Lane Salford, Manchester, United Kingdom
Low cost, high yielding investment producing a positive cash flow income stream at a net yield of 11% plus.
• Lack of purpose built student accommodation near campus necessitates this development.
• Excellent cash flow investment for a hands off investor at superb yields.
• Ready for April 2013 – this is a new off-plan project approved by Salford University.
• Lower price and quality accommodation demand is driven by market forces.
• Unique and rare asset class that is now available to UK based investors.
Summary
• Location – Ford Lane, Salford, M6 6PE
• Current Status – In pre-build phase. Construction to begin in November 2011. Ready to let from September 2013
• Availability - 354 student rooms
• Type – All rooms en-suite, measuring 13.7m2; 5 pods grouped together termed ‘cluster’ apartments.
• Disabled facilities – Ground floor rooms provide disabled access
• Parking – 60+ parking spaces
• Other – Building is six floors including the ground. 4th, 5th and 6th floor already sold out.
• Prices - £27,500 for one unit
• Offers – Discounts for multiple purchases.
• Target market - Investors who want a hands off project. Excellent cash flow with yields at circa 10%
• What this is not – An opportunity for a quick flip. Investors should be looking to utilise this asset class to provide a medium to long term rental income with minimal effort.
5 reasons why this investment is in demand
Lack of first time buyers means more long term renters on the market
Property prices are still high and first time buyer products are limited. These eventual first time buyers will be renting on a long term basis now and landlords have been able to raise rents. If these FTB’s are prepared to pay higher rents, where does that leave students?...
More long term renters has driven up rental prices to an all time record high
This means that those on the lower end of the market are also seeing rental increases, including students. While some students may be in a position to pay higher rents, the need for lower priced, decent quality accommodation is a niche market which requires attention.
Students are being squeezed because of record rents in the private sector
It is now not uncommon to see median rentals of £120 per week for student accommodation in cities such as Nottingham, Leeds, Glasgow etc. If students can save up to £50 per week for a slightly lesser, but still good quality accommodation, then a significant number will do so.
Affordable and decent quality of accommodation is becoming rare
Well priced and good quality are not always synonymous, but it there is a niche in the market to update and refurbish old stock to more modern standards. Educational establishments are now releasing assets to private companies such as ourselves as they look to raise funds. Due to our expertise in development, renovation and refurbishment, we can bring accommodation up to speed without excessive outlays.
Students are now more financially constrained than ever before i.e. increased tuition fees
The economic crisis has led to parents to reassess affordability and ways to make education as economically viable as possible. Now with student fees to be at £9,000 per year across most establishments, the opportunity to save thousands of pounds per year on more affordable and good quality accommodation is an important factor.
Specifications
A single unit or property constitutes the following:
• A student pod or room, measuring 13.7m2 on the 1st,2nd, 3rd, 4th, 5th or 6th floor of the development. They are all en-suite with shared kitchen and common room facilities between any 5 pods, termed as ‘cluster apartments’. Each pod will be legally owned on a leasehold basis by the investor on a separate title deed. The leasehold will be 125 years.
• Even though the above image says the rooms are 11m2, they are going to be about 13.7m2 each including the en-suite facility. The en-suite facility is a wet room, meaning it is an open plan en-suite comprising of a shower, sink and toilet.
• Option 1: Single unit cash purchase at £27,500
• Option 2: Multiple units at buy 5 @ £27,500 using commercial mortgage
Option 2 will not be available to everyone and we only encourage those that are in an excellent financial position and have very good credit to look at this option.*
• Single unit purchase price £27,500 This is the net price for 1 unit at Ford Lane, Salford
• Solicitors costs estimate £715 Legal fees charged by your solicitor
• Any refurbishment costs? £0 Total cash outlay: £28,215
• Rental amount per week £85 Median rental in the immediate area
• Gross annual rent (42 weeks) £3,600 Based on a 42 week academic year, 12.22% pa gross property yield
• Estimated percent of rent lost in voids 0 Due to rental guarantees and regularity of student lets
• Gross rental income after voids £3,600 per annum
• Enter estimated annual expenses £950 per annum – accounting for service charges and ground rent
• Net income after expenses & voids £2,650 per annum, 9.64% net yield
• Total investment £28,215 9.39% pa investment running yield
Acquisition structure
• Initial non-refundable reservation £3,000 This is to reserve a unit, meaning we book it off the system.
• After 21 to 28 days £10,000 Upon reservation, we send contracts to your nominated solicitor
• Upon completion (April 2013) £14,500 Remainder on completion – in this instance, the beginning of the academic year 2011
• Total costs £27,500 The £27,500 is inclusive off all our fees.
Benefits and incentives
• Rental Guarantees 1 year We guarantee a rental return of 10% net guaranteed for the first year.
Summary – Why you should invest today
It will be turnkey ready and requires no input from the investor
It will be ready to collect rents from day 1 of the academic year September 2013 onwards.
There are no other modern, premium quality student accommodation facilities in the area
This development has been approved by Salford University as they recognise the need to offer modern, good quality housing for their students within the immediate vicinity of the university. Whilst we do not currently have a nomination agreement with the university, the likelihood of this being agreed upon completion is very high.
The location of the development is unbeatable
Ford Lane Halls will be a mere 2 minute walk from the main Salford campus and a 3 minute walk to the Salford Crescent train station which provides a quick entry to Manchester city centre within 6 minutes.
£11 million of regeneration on Broad street to revitalise the area
The Northwest Regional Development Agency (NWDA) is granting £10.76 million to launch the redevelopment of the Chapel Street which will help to revitalise the area surrounding the university and the proposed Ford Lane halls area.
High yields at 10% net guaranteed
At a purchase price of £27,500 on a single unit, we are prepared to offer a net return of 10% for the first year i.e. we’ll make you sure you get a cash flow to amount to 10% net for the first year.
This availability of this asset class will not last forever!
This is a rare opportunity to acquire an asset class that does not come around very often. In the deep throes of the recession, public institutions are in a more pressured position to privatise their assets. It is now essential to an investors toolbox to invest in student lets and now is the opportunity to acquire low cost, high yielding student investments for cash flow purposes.
|
Home Features - Air Conditioning
- Balcony
- Cable/Satellite TV
- Disposal
- Gas Range
- Hardwood Floors
- Microwave
- Patio/Deck
- Swimming Pool
- Wheelchair Access
|
|
If you see Pegman on the map  , drag him to the property's location. If the street lights up, drop him to watch Google's street view of the surroundings.
|
Share this with friends
