Located next to the famous Kelham Isalnd museum, Milau is a very popular place to live.
Rents in Kelham Island and more specifically this development are usually around £575pcm and this apartment looks as though it would achieve £575pcm.
If purchased at asking price and if this property was to achieve £575, the yield would be 6.28%, 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%.
The only set back with this property is that it does not have a balcony as most apartments in this development do have balconies, some of which are river facing, making these apartments really attractive to tenants and buyers, so it is a real shame that this apartment does not have a balcony.
This apartment is on the second floor, which in other developments may put some people off because of the noise, but given the way this apartment faces, noise should not be an issue, as there is hardly any footfall.
Other apartments similar to this property in this development have sold for £106,000 and above, so £105,000, would be a good deal.
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.