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Southampton Student Investment

Block of 25 studio apartments in Southampton

Southampton

Location

6.8%

NET Yield

Yes

Tenanted

Southampton Student Development

Fresh Invest are very happy to present our latest bulk purchase opportunity in Southampton.

  • Brand New Development – Exclusive to Fresh Invest
  • 25 Studio apartments
  • Experienced developer
  • All previous schemes 100% occupied
  • Freehold purchase
  • Stamp Duty Savings available

More information

THE INVESTMENT

An opportunity to purchase a brand new development of 25 studio apartments in a very central Southampton location.

The apartments will be complete in January 2022. The incoming purchaser will have the advantage of a newly constructed, energy efficient building.

The purchaser can either choose to use our recommended letting agent or appoint one themselves

THE AREA

This development sits in a prime position in Southampton, very close to the city centre and the Southampton Solent University campus, which is in the throws of expansion currently.

Southampton is a southern location in the UK with a typically affluent population. Property prices have risen by 30% in the last 5 years. The universities provide world leading research in many arenas and the University of Southampton itself is part of the prestigious Russell Group of universities.

Among the University of Southampton and Southampton Solent University, there is a total of over 33,000 students in the area.

THE DEVELOPMENT

The development will comprise 25 tastefully decorated and well designed studio apartments. All purpose built for the under supplied student market in Southampton.

All apartments will include a kitchenette and en-suite bathroom, which makes these appeal to many different types of student and makes them a far more rentable prospect going forward.

Unlike many other types of these developments, all rooms will come complete with double beds, there is plenty of communal space and a gym on site too!

FINANCIAL EXAMPLE

Purchase price – £2.65m
Deposit at 30% – £795,000
Gross annual rent – £225,000
Annual running costs inc management – £43,600
Finance costs @ 70% LTV and 4% interest – £74,200
Net Rental Return (pre finance costs) – £181,400 pa
Net Rental Return (post finance costs) £107,200 pa
Net Rental Yield – 6.8%
Net Return on Investment – 13.5%*

*before purchasing costs.