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• 1 bedroom flat for sale in Nottingham City Centre

1 bedroom flat for sale in Nottingham City Centre EU228AS

Student Scheme Nottingham

Low cost, high yielding investment producing a positive cash flow income stream at a net yield of 10% plus.

·Unique and rare asset class that is now available to UK based investors.
·Lack of student accommodation in the centre of town necessitates this development.
·Excellent cash flow investment for a hands off investor at superb yields.
·Planning permission already in place from an office conversion - 8 month project.
·Lower price and quality accommodation demand is driven by market forces.

Summary

·Location - Victoria Halls, 76 Milton Street, Nottingham
·Current Status - In pre-build phase. Internal renovation to be done by April/May 2012. Ready to let from September 2012.
·Availability - 150+ student rooms
·Type - 70% of the rooms are en-suite; 30% of the rooms are standard with shared facilities.
·Parking - None available
·Price - £30,000 for one unit
·Offers - Discounts for multiple purchases
·Target market - Investors who want a hands off project. Excellent cash flow with yields at circa 10% plus.
·Other facts - Up until April 2011, the building had been used by Nottingham Trent University to provide additional lecture rooms and offices, which means that the university realise the proximity of the development to its own facilities.
·What this is not - An opportunity for a quick flip. Investors should be looking to utilise this asset class to provide a medium to long term rental income with minimal effort.
·Up to 39% Below Market Value

5 Reasons Why This Investment is in Demand

Lack of first time buyers means more long term renters on the market
Property prices are still high and first time buyer products are limited. These eventual first time buyers will be renting on a long term basis now and landlords have been able to raise rents. If these FTB's are prepared to pay higher rents, where does that leave students?...

More long term renters has driven up rental prices to an all time record high
This means that those on the lower end of the market are also seeing rental increases, including students. While some students may be in a position to pay higher rents, the need for lower priced, decent quality accommodation is a niche market which requires attention.

Students are being squeezed because of record rents in the private sector
It is now not uncommon to see median rentals of £120 per week for student accommodation in cities such as Nottingham, Leeds, Glasgow etc. If students can save up to £50 per week for a slightly lesser, but still good quality accommodation, then a significant number will do so.

Affordable and decent quality of accommodation is becoming rare
Well priced and good quality are not always synonymous, but it there is a niche in the market to update and refurbish old stock to more modern standards. Educational establishments are now releasing assets to private companies such as ourselves as they look to raise funds.
Due to our expertise in development, renovation and refurbishment, we can bring accommodation up to speed without excessive outlays.

Students are now more financially constrained than ever before i.e. increased tuition fees
The economic crisis has led to parents to reassess affordability and ways to make education as economically viable as possible. Now with student fees to be at £9,000 per year across most establishments, the opportunity to save thousands of pounds per year on more affordable and good quality accommodation is an important factor.

Financials - Returns You Can Expect

A single unit or property constitutes the following:

A student pod or room, measuring approximately 12m2 on the 1st,2nd, 3rd, 4th, 5th or 6th floor of the development. This will either be en-suite or standard with shared facilities depending on the availability on request. Each pod will be legally owned on leasehold basis by the investor on a separate title deed. The leasehold will be 125 years.

There are two channels to acquire these investment units (with an optional third for those who can obtain finance):

·Option 1: Single unit cash purchase at £32,500
·Option 2: Multiple units at buy 5 @ £30,000 using a commercial mortgage

Option 2 will not be available to everyone and we only encourage those that are in an excellent financial position and have very good credit to look at this option.*

Acquisition structure

Initial non-refundable reservation – GBP 3000 - This is to reserve a unit
After 21-28 Days 10,000 - Upon reservation we send contracts to your chosen solicitor
Upon completion (September 2011) - GBP15,500 - Remainder on completion

Why you should Invest Today

It will be turnkey ready and requires no input from the investor
It will be ready to collect rents from day 1 of the academic year September 2012 onwards.

We are being conservative with the rental projections at £80 per week
Anything else which is being offered as student accommodation is marketed at a median rate of £120 per week for en suite facilities. This means the £80 per week we are projecting is very conservative. You could actually increase rents to £100 a week and still be one of the cheapest around - it will be snapped up very quickly.

The location of the development is unbeatable
Victoria Halls is a mere 55 second walk from Nottingham Trent University. Lettings agents and former students we have spoken to are providing glowing reviews about the proximity of this development to the university and town centre.

High yields at 10% net guaranteed
At a purchase price of £22,916, the investor will obtain net returns of 10.21%, which is guaranteed for the first 3 years. Even at a purchase price of £30,000 on a single unit, we are prepared to offer a net return of 10% for the first year i.e. we'll make you sure you get a cash flow to amount to 10% net for the first year.

This availability of this asset class will not last forever!
This is a rare opportunity to acquire an asset class that does not come around very often. In the deep throes of the recession, public institutions are in a more pressured position to privatise their assets. It is now essential to an investors toolbox to invest in student lets and now is the opportunity to acquire low cost, high yielding student investments for cash flow purposes.