Bournemouth, BH8 8JU | Investment Property for Sale | VES-BH8-001

Opportunity to purchase an apartment in Bournemouth generating £10,500 rent pa and a gross yield of 6.4%

£165,000

Apartment

VES-BH8-001

INITIAL INVESTMENT

£74,640

GROSS RENT / YIELD

£10,500 / 6.4%

NET RENT / YIELD

£7,122 / 4.3%

Above average yield

Through our expertise and research, we have found that this property is above the average of this location based on data from REalyse, PropertyData and Zoopla

The higher the yield the stronger the return on investment.

The property

TENANCY

Tenanted

TENURE

Leasehold

GROUND RENT

£175

SERVICE CHARGE

£700

2 bedrooms

1 bathroom

1 reception room

635

Fully Furnished

Property information

  • Top floor apartment
  • Comes with a designated parking space
  • EPC rating B

Leasehold information

  • Length of lease: 99 years
  • Year lease started: 2002

Market Trends

Sales Trends

  • Prices in BH8 have increased 23% over the last 5 years (+2%) and are £251k based on the average of the previous 12 months. This varies by property type (£135k for a 1-bed flat to £580k for a 5-bed detached property).

  • On average, there have been 36 properties sold per month in the area in the last 12 months.

Rental Trends

  • Rents in BH8 are £950 per month (£11,400 pcm) (-3%) based on the average of the previous 12 months.

  • On average, there have been 49 properties listed for rent per month in the area in the last 12 months.

  • Given prices in the area, gross yield is currently 4.7% which is higher than the national average of 4.7% and wider Bournemouth area of 4.3%.

  • This property is currently achieving a gross yield of 6.4% which is 27% higher than the area.

Source: REalyse - 11/04/2019

Note Vesta has not visited this property and that all material has been provided by the vendor.

Tenancy

RENT

£10,500 p.a. / £875 pcm

TENANCY DEPOSIT

£1,312

TENANCY TYPE

AST

TENANCY AGREEMENT STARTED

10 months ago

TENANCY AGREEMENT ENDS

7/20/2019

Documents available on request, please contact for viewings or further questions.

The information relating to the property is supplied by the vendor and the latest available at the date of listing.

Certain information may expire or become inaccurate over time and should be verified by the purchaser’s solicitor.

Financials

Rental Income

GROSS RENT PER ANNUM

£10,500

Equivalent of £875 per calendar month (PCM).

GROSS RENTAL YIELD

6.4%

Gross rent per annum divided by the purchase price.

NET RENT PER ANNUM

£7,122

Gross rent per annum minus fully managed operating costs.

NET RENTAL YIELD

4.3%

Gross rent per annum minus fully managed operating costs divided by the purchase price.

FULLY MANAGED OPERATING COSTS

£3,378

The total estimated sum of expenses calculated annually assuming a fully managed service.

Click to understand assumptions.

Disclaimer

This information is for illustration purposes only and does not constitute advice. It is correct at the time of writing. For advice specific to your personal circumstances, please speak to a financial adviser.

About Bournemouth, Dorset

  • Bournemouth is a large coastal resort town on the south coast of England and the largest in Dorset. With Poole to the west and Christchurch in the east, Bournemouth is part of the South East Dorset conurbation.
  • The Bournemouth area has been declared a boom town, with one of the fastest-growing economies in the UK. Analysts expect the local economy to grow by 1.5 per cent, putting it at number 10 in a national league table.
  • The area has seen an “unrivalled stream of development” in recent years with a combination of private and public sector investment.

Property

  • Nearly 30% of properties purchased were second homes or investments, according to data from HMR (2017-18), with a combined value of £299 million.
  • Housing is on average 30% cheaper than central London and rents are £1,650 per month (for a 4-bed detached).
  • Prices have increased by 2% over the past 12 months and are now at £295k on average. 9,285 properties sold in the area over the past year.
  • Rents have decreased over the past 12 months and are now at £935 per month.
  • Given prices in the area, the average yield is 4.4% which is lower than the national average of 4.7%. Over the past year, 7,939 new rental properties on the market.
  • An estimated 31.2% of people are renting, based on market activity in the last 12 months.

Population

  • Population is 580,848 of which 317,065 of people are the working age of 20-64.
  • Office for National Statistics (ONS) data has predicted it to rise by 6.9%, largely driven by natural change as well as migration from both within and outside the UK.
  • Bournemouth council are targeting to build 14,600 by 2026 to meet with growing demand.

Business / Economy

  • Bournemouth had the fastest-growing employment rate in the country demonstrating a strong step forward and highlights how the banking, finance and insurance industry’s presence is having a strong impact on the area (UK Powerhouse Study).
  • Tourism representes 15% of the total economy thanks to miles of golden sandy beaches. It is valued at £501 million and employs over 8,500 people full time.
  • Bournemouth is one of the most prestigious business centres in Britain. JP Morgan established their Global Technology Hub in the 1980s. RIAS, McCarthy & Stone, and Liverpool Victoria have their regional or national headquarters in the town.
  • There is an estimated £27m vision for the Lansdowne area including £8.5m government funding for the development of a world class business district.
  • According to the Tech Nation report 2015, Bournemouth is the fastest growing location in the UK for tech jobs, with over 400 agencies across Bournemouth and the surrounding area.
  • Other sectors that have seen major growth since 1991 are Public Administration, Education and Health (25.6% increase).
  • The area als0 has a skilled local workforce, and wages are relatively low compared to national levels. This means, Bournemouth is ideal for companies who want to employ high quality staff in the service sector.
  • The area is vibrant and cosmopolitan with superb shopping, excellent cafes, restaurants, bars and nightlife.

Schools

  • Recent investment in Bournemouth schools exceeds £85m and three new primary schools have opened to accommodate extra pupils.
  • The area has some of the best performing schools in England, 11 of which are in the good school’s guide. 53% of schools are above the national average on attainment points.
  • Bournemouth University has 20,000 students and estimates it is worth £1million a day to the regional economy. The university is also building new halls of residence to support the town’s growing student population.
  • Bournemouth is a popular choice for foreign language students and Anglo-Continental is
  • working in partnership with AFC Bournemouth to offer new English + Football courses.

Connectivity

  • Excellent road networks connecting the county. The M27 and M3 provide easy access to London and the national motorway network.
  • Just two hours’ drive from London, Bristol and Brighton and a good choice of car parks.
  • Train journeys are just 1 hour 45 minutes from London and around two hours from Bristol and Brighton.
  • Both London Heathrow and London Gatwick airports can be reached within a few hours, with direct connections to Bournemouth via rail and coach services. Nearby Southampton International Airport and Bournemouth Airport fly to a number of European and domestic destinations.
  • Fast and frequent passenger and car ferry links from Poole, Weymouth, Southampton and Portsmouth place the Channel Islands, France and Spain within easy reach.

Portchester Road,

Bournemouth,

Bournemouth,

England,

BH8 8JU

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