Leeds, LS9 9LS | Investment Property for Sale | VES-LS9-100

Opportunity to purchase an end terraced freehold HMO in Leeds generating £12,600 rent p.a. & yield of 12%

£105,000

HMO End Terrace House

VES-LS9-100

INITIAL INVESTMENT

£47,680

GROSS RENT / YIELD

£12,600 / 12.0%

NET RENT / YIELD

£9,440 / 9.0%

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The property

TENANCY

Tenanted

TENURE

Freehold

3 bedrooms

1 bathroom

1 reception room

TBC

Fully Furnished

A fully let 3-bedroom, an end terrace, fully furnished HMO

  • Room 1 - rent £350 pcm
  • Room 2 - rent £350 pcm
  • Room 3 - rent £350 pcm

Note: we are awaiting tenancy details and AST documents from the landlord

Whilst the displayed financials below are market averages, these are the current running costs provided by the landlord:

Running costs

  • Council tax: £91
  • Water bill: £25.20
  • Gas & electricity bill: £187
  • Virgin media bill (TV & broadband): £37.44
  • TV licence: £12.83
  • Management fee: £75
  • Total pcm: £428.47
  • Total pa: £5,141.64

**Please contact us for a bespoke financial analysis, documents or any other questions. **

Market Trends

Sales Trends

  • Prices in LS9 outcode have increased 23% over the last 5 years (-3% over the last 12 months) and are £102,000 which varies by property type (£113,000 for a 1-bed flat to £295,000 for a 5-bed detached property). On average, there have been 35 properties sold per month in the area in the last 12 months.

  • In comparison, prices in the wider Leeds LS area are £178,000 (+1% over the last 12 months) and range between £106,000 for a 1-bed flat to £538,000 for a 5-bed detached property.

Rental Trends

  • Rents in LS9 are now at £647 per month (£7,764 pa) (a growth +1% over the last 12 months). On average, there have been 49 properties listed for rent per month in the area in the last 12 months (c. 6% of stock)

  • Given prices in the LS9 area, on average gross yield is currently 8.1% which is higher than the national average of 4.7% and the wider Leeds LS postcode area of 5.2%.

  • This property is currently achieving a gross yield of 12% which is 33% higher than the area.

Source: REalyse - 21/05/2019 Note: prices and rent are median and averaged over the last 12 months, unless stated. Data sourced from c. 20 different sites and agents.

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

£12,600

Equivalent of £1,050 per calendar month (PCM).

GROSS RENTAL YIELD

12.0%

Gross rent per annum divided by the purchase price.

NET RENT PER ANNUM

£9,440

Gross rent per annum minus fully managed operating costs.

NET RENTAL YIELD

9.0%

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

FULLY MANAGED OPERATING COSTS

£3,160

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 Leeds

Leeds is a city in West Yorkshire. It is situated around 9 miles east of Bradford, 33 miles north of Sheffield and 39 miles northeast of Manchester.

This city is serviced by Leeds railway station, which acts as the terminus station of the East Coast Main Line and is the third busiest railway station outside of London. This station is managed by Network Rail and operates services by London North Eastern Railway, CrossCountry, TransPennine Express, Northern and East Midland Trains. This station is also used by the Metrotrain network in West Yorkshire and operates the following lines; Leeds Branch of the East Coast Main Line to London King’s Cross, Midland Main Line to London St Pancras, Airedale Line to Keighley/Skipton/Carlisle, Hallam Line to Castleford/Wakefield/Barnsley/Sheffield and many more. CrossCountry offers routes between Scotland, the Midlands and the south west of England.

The city of Leeds has an extensive retail area which is identified as the principal regional shopping centre for the whole of the Yorkshire and the Humber, generating on average £1.93bn turnover annually. There are several indoor shopping centres in the city centre such as the Merrion Centre, St John’s Centre, The Core and The Victoria Quarter to name a few. Between these shopping centres there are well over 1,000 retail stores spread across a combined floorspace of 3,660,000 square feet. The heart of this retail centre is around the largely pedestrianised Briggate where one can find all well-known British high street stores including Marks & Spencer, House of Fraser, Debenhams and Harvey Nichols. The Victoria Quarter is one of the more notable shopping centres due to its collection of around 70 high-end luxury retailers such as Louis Vuitton and Vivienne Westwood spread across two Victorian arcades.

Leeds has one of the most diverse economies of all of the UK’s main employment centres and has recently seen the largest growth in private-sector jobs in the whole of the UK. Leeds is hailed as the largest centre outside of London for financial and business services. Leeds has over 30 national and international banks that operate from the city including Barclays, Santander and RBS, as well as the headquarters of Yorkshire Bank and First Direct. Other major companies that are based in the city include William Hill, ASDA, Direct Line and many more. Leeds is also the UK’s third-largest manufacturing centre and 50% of the UK’s manufacturing firms are within a two-hour drive of Leeds.

For all these reasons and more Leeds has become a very popular location for young professionals and many graduates stay on in Leeds once they have finished their studies. Recent years have even seen an influx of graduates from all over the country due to the high number of graduate apprenticeship programmes and this demographic is the perfect target for HMOs in the city.

Vinery Street,

Leeds,

West Yorkshire,

England,

LS9 9LS

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