Riverside Exchange Apartment, Sheffield S3 with 6.5% Return
This apartment was listed yesterday by Martin & Co.
City Centre apartments are well known for being great investment opportunities in Sheffield. There has been a sharp increase in new apartment blocks being built in the last decade and some are naturally more sought after than others. For reasons unknown, but possibly due to flood history in Sheffield, Coode House tends to be one of the less popular developments.
Although this apartment is of a good size, is situated on the seventh floor and has a very large balcony, I just donâ€™t see it being sold any time soon with an asking price of Â£125,000. I know that there are other properties in and around the City Centre that would offer greater returns on investment.
Donâ€™t get me wrong, this would still rent out and a monthly rent of Â£675, meaning a yield of 6.5% but the conveyancing process may hit some snags if flood searches are carried out. This development was subject to flooding in recent years and this may put off any wise investor.
After all, itâ€™s not all about the yield, the properties have to be sold again one day and any buyer wouldnâ€™t want to experience the same problems as a seller.
In my opinion, I would steer clear and invest elsewhere and I believe others may think and advise the same.