|Object||Studio’s in downtown Sheffield|
|Location||Green Lane Sheffield S3 8SJ
(900 meters to town centre)
|From||UK£ 89.000 – £160.000|
|Return||8% net annual yield – guaranteed 3 years.
Afterwards market rate – costs
Sheffield is the 4th largest city in the UK. With its 560.000 people, it is considered a mid-size town. More importantly, Sheffield has seen a thorough metamorphosis in the last 15 years. And that change is still in full swing. In the middle between an industrial city (The famous Full Monty move of 1997) and a modern service economy, Sheffield is transforming itself at an increasing speed. Read more on our Sheffield analysis.
Cornwall – Phase II is our second Sheffield project. Deze Sheffield studio’s vullen een perfect gat in de markt van jongen urbanites die graag in het centrum willen blijven wonen.
Modern and affordable living in the town centre
Cornwall is a new building, located less then 1km away from downtown Sheffield. Faze I has been sold out and fully tenanted. This month work has started on the 30 studio’s of phaze II. Target residents are young professional and final year students, wishing to star their professional careers in Sheffield. Size of a studio is 26-30 m² and they are tenanted on a yearly basis. Waiting lists are log for this kind of accomodation, so there is no suprise the first phaze was fully rented out a few months before it actually opened up.
The project is run by Firestone Development, the largest developer in Sheffield with a strong track record in this type of development. The management is taken care of by Belvoir, one of the largest management companies in the UK, and the only one to be listed on the London AIM. No beginner’s job.
Sheffield studio’s: 8% net rental yield & a good capital gain
The developer guarantees a net rental yield of 8% for 3 years. Afterwards, you would receive market rental rate minus costs (at present rental prices of phaze I, that would be just below 7%) Additionally there is of course the appreciation. Difficult to read the rate of that is our crystal ball, but last year prices increased with an average 10% . We always calculate our projections on 3% annual price increases, but we are probably quite conservative for a region that has easily achieved 4-10% in the last 5 years.
The invester pays 35% downpayment at contract time and 65% at completion in Q3 2019. And he pays at a developer discount of approximately 10% against prices of finished apartments.
If you prefer residential property with an annual yield of 8% AND a significant uplift potential, you have a very good reason to look at Sheffield.
Want to know more? Contacts us today.