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Southampton Student Investment

Block of 25 studio apartments in Southampton

Southampton

Location

6.7%

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
  • 12 bed student development
  • Tenanted ground floor commercial
  • Fantastic location
  • Freehold purchase
  • Stamp Duty Savings available

More information

THE INVESTMENT

An opportunity to purchase a recently completed development of 12 x student bedrooms and a ground floor commercial space.

The development was completed in 2021. The incoming purchaser will have the advantage of a newly constructed, well finished building with little/low maintenance requirements.

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 12 well designed student bedrooms throughout a total of 7 flats. All recently renovated and perfect for student occupiers.

The apartments vary between studios, 1 beds and 2 beds. So there are plenty of options available for tenants.

All bedrooms have double beds and most benefit from en-suite bathrooms too.

FINANCIAL EXAMPLE

Purchase price – £1.5m
Deposit at 30% – £450,000
Gross annual rent – £127,960
Annual running costs inc management – £26,384
Finance costs @ 70% LTV and 4% interest – £42,000
Net Rental Return (pre finance costs) – £101,575 pa
Net Rental Return (post finance costs) £59,575 pa
Net Rental Yield – 6.7%
Net Return on Investment – 13.2%*

*before purchasing costs.