West One, Sheffield City Centre with 5.7% yield
Newly listed for sale with Urban.co.uk is a two bedroom apartment in the ever popular development of West One.
Whilst West One is known for its high sale prices and rental income, I think that Â£189,000 is far too ambitious for a property that will achieve only Â£900pcm. This is reflected in the annual yield of 5.7%.Â
The photos show the original kitchen and bathroom installed in all West One apartments so there is nothing spectacular about the bathroom and kitchen to justify a higher than usual asking price.
If you own a property at West One, you should be achieving a yield of at least 7% which only emphasises why this property is overpriced. As the vendor here is using an online agency to market his property, it is most likely that they are not receiving the best local knowledge and advice, hence the high sale price.
I see apartments similar to this one generally selling for between Â£140,000 – Â£170,000 dependant on the size, layout and rental income. You can purchase a large 3 bedroom conversion for Â£11,000 more that achieves Â£1,300pcm and is over double in size with much more character on offer.
An apartment that achieves a similar amount of rent can be purchased elsewhere in S1 for at least Â£20,000 less. Based on this, I would definitely recommend that you do your research into West One before making an offer that is too high and could cause you to lose money in the long run.Â
West One is great and can offer a very stable investment, but only at the right price.