Q4 Apartments, near Sheffield City Centre with 7.35% potential Return
Listed by Belvoir is this one bedroom apartment at the very popular Q4 development (particularly popular amongst students). As a minimum, a property of this size and quality should achieve Â£520pcm, although it is stated in the description that this property currently only achieves Â£500pcm. A letting agent with a bit more local knowledge and expertise should comfortably achieve a higher rent for you.
With the rent currently at Â£500pcm, the yield would be 6.9% if purchased at asking price, although if the rent was Â£520pcm, the yield would be just short of 7.2%. I believe an offer of Â£85,000 is likely be accepted for this property, meaning a potential yield of 7.35% at the higher rent of Â£520pcm.
The rents in Q4 have been steadily increasing in recent years and I would expect this to continue. This particular apartment is typical of an apartment in Q4 as many are of the same layout and with the same fixtures and fittings.
The service charge in Q4 is very impressive compared with other city centre developments at just Â£580 per annum. The ground rent is more expensive than usual at Â£300 per annum. Combined at Â£880, this is reasonable, but something to consider when doing the sums for this property. Â
If this property is available between June and October, there will be very little void period and a higher rent will be achieved which makes it a pretty safe investment in my eyes.