West One, Sheffield City Centre with 7.3% potential yield
This is an interesting one! The marketing agent, Blundells have advertised this as a one bedroom property today which is incorrect and misleading as this is actually a studio apartment!
I couldnâ€™t believe my eyes at first glance as a one bedroom apartment at West One for only Â£100,000 would be sold almost immediately! It was then no surprise to find it is a studio at this price.
Studio apartments in the City Centre are ever popular with renters, particularly international students, and are in less demand by owner occupiers. As a result, I am fully expectant that this property will attract interest from buy to let purchasers as these apartments offer a great investment opportunity due to the demand from potential tenants.
A monthly rent in excess of Â£500 can be achieved for an average studio in West One if rented furnished and with this property being on a high floor, having a balcony and appearing quite spacious, I would say a realistic monthly rent would be Â£520. This would result in a yield of 6.2%. This is ok but there are greater yields available in the centre of Sheffield, but few places will offer as much security when it comes to the avoidance of void periods.
Whilst there are greater returns on investment available, I certainly wouldnâ€™t advise against buying this apartment, just maybe not at this price. A more realistic purchase price of Â£85,000 would result in an excellent yield of 7.3%.