Listed by Martin & Co over the weekend is this one bedroom apartment -at Milau, Kelham Island, S3.
Located next to the famous Kelham Island Museum, Milau is a very popular place to live with both tenants and owner occupiers alike.
Rents in Kelham Island, more specifically this development, are usually around £575pcm and this apartment looks as though it would achieve £575, no problem if rented furnished.
If purchased at asking price achieving a monthly rent of £575, the yield would be 6.13% which is not a bad yield. However, I would be hoping to achieve a yield closer to 7%. If the vendor was to accept a lower offer of £105,000, this yield would be a much improved 6.57%.
I would expect the rent to increase on this property and would certainly not be surprised if this property was to achieve £600pcm in a couple of years’ time, which would mean if purchased at £105,000, the yield would be 6.86%. This highlights how easy it can be to improve a yield by nearly 1%.
This property will attract both owner occupiers and investors, so is likely to be popular.
The majority of tenants in this area are young professionals, although more students are moving away from the city centre to avoid extortionate rents, with Kelham Island often been their preferred location.