Newcastle under Lyme – Orme house
|Object||Student Ensuites and studio’s|
|Location||Newcastle under Lyme|
|Investment from||UK£ 70.000|
|Rental Yield||Minimum 9% net yield
(Assured for 5 years)
5% interest during renovation
Halfway between Manchester and Birmingham, you will find the quiet town of Newcastle under Lyme. With 75.000 people (of which 25.000 students), it is a student-run city. Two major universities dominate public life in : Keele University en Strafforshire University. Orme House is a renovation project, converting an old housing complex into 102 student flats.
The most pleasant aspects of this project is of course the high expected rental return, but also the short completion term: the first students (and rental returns to go with it) are expected in September 2018.
Studenten flats take a position in between residential and commercial real estate: rental yields (9%) are comparable to commercial real estate, while the sales conditions appear like residential real estate. The will increase with market increases and they don’t carry stamp duties. On the other hand, there is no buy-back options en flats need to be resold to other investors.
This is also the case in this project: rental yields will grow with the market, while the developer guarantees a minimum 9% yield in the first 5 years. Fortunately, Newcastle has such a huge shortage, there is a lot of upward pressure expected on these prices.
9% (5 years guaranteed)
Abode is one of the most reputed developers of the area with more then 35 years of experience in – mostly small scale – residential and student projects. Market leader student flat management company Urban Student Life, will take care of your flat and find and charge students. As the English law calls this “commercial” real estate, there is no stamp duties or other costs to be paid. Payment is done in 2 installments: 50% at signature, 50% at completion (September 2018).
Interested? Call us today!