Spalding, PE11 1UQ | Investment Property for Sale | VES-PE11-002

Semi-Detached HMO in Spalding generating £33,288 in rent per annum & a gross yield of 17.5%

£190,000

HMO Semi-Detached House

VES-PE11-002

INITIAL INVESTMENT

£86,040

GROSS RENT / YIELD

£33,288 / 17.5%

NET RENT / YIELD

£26,438 / 13.9%

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

Freehold

5 bedrooms

2 bathrooms

1 reception room

1,231

Fully Furnished

Property details

  • licenced HMO for 6 occupants
  • generates a rental amount of £33,280 per annum when fully occupied

We are currently awaiting the AST for the rented rooms but can provide a room payment breakdown upon request.

Whilst the financials below are marketing averages, these are the running costs provided by the landlord:

Running costs

  • Gas and electricity bill: £80
  • Council tax: £120
  • Water bill: £40
  • Insurance: £20
  • Property management, if required, at 10%: £277
  • Total pcm: £537
  • Total pa: £6,444

Please contact us for a bespoke financial analysis.

Sales Trends Prices in PE11 have increased 28% over the last 5 years (+2% over the last 12 months) and are £174k which varies by property type ((£102k-£217k). There have been 61 properties sold in the area in the last 12 months.

Rental Trends Rents in PE11 are now at £647 per month. Given prices in the area, gross yield is currently 5.4% which is higher than the national average of 4.7% and PE12 of 4.6%. This property is achiving higher than the area.

Floorplans

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

£33,288

Equivalent of £2,774 per calendar month (PCM).

GROSS RENTAL YIELD

17.5%

Gross rent per annum divided by the purchase price.

NET RENT PER ANNUM

£26,438

Gross rent per annum minus fully managed operating costs.

NET RENTAL YIELD

13.9%

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

FULLY MANAGED OPERATING COSTS

£6,850

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 Spalding, Lincolnshire

Spalding is a market town in the East Midlands. This town is situated on the River Welland in the South Holland district of Lincolnshire, around 18 miles north of Peterborough and 49 miles east of Leicester.

This area is serviced by Spalding railway station which lies on the Lincoln Central – Peterborough Line and is managed by East Midland Trains. East Midland Trains operates an hourly service from Monday to Saturday in each direction with southbound services towards Peterborough and northbound services to Sleaford and Lincoln. Some of these services continue onwards from Lincoln to Newark North Gate and there is a daily evening service to Nottingham via Peterborough and Melton Mowbray.

In town there are a variety of local supermarket options including a Sainsburys, Lidl, Aldi and a Marks and Spencer Food Hall. Just outside of the town centre there is the Springfields Shopping Outlet & Festival Gardens which features over 60 stores, including all national favourites and some boutiques to make for a well-rounded retail experience. This outlet also has a selection of dining options and the festival gardens which offers a beautifully landscaped area including designs by Charlie Dimmock and Kim Wilde.

Spalding is at the heart of a major region of flower and vegetable cultivation due to the rich silty soil. There are many companies within the agriculture field hiring people in the area, such as garden centres, plant nurseries as well as various vegetable packing plants. Some of the big employers in town are FESA UK LTD, Greencore, Fowler-Welch Coolchain and Lloyd Loom of Spalding.

This location could be ideal for young families looking for schooling options for their children in walking distance within the town. Some of the primary schools in town are Spalding Parish Church of England Day School and Wygate Park Academy, both of which are co-educational up to the age of 11. There are two grammar schools in town Spalding Queen Elizabeth Royal Free Grammar School for boys and Spalding High School for girls, both of which have a mixed sixth form.

Saltern Drive,

Spalding,

Lincolnshire,

England,

PE11 1UQ

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