Added On :
Doncaster, United Kingdom
30 Jan 2018
£ 83,000 / € 94,740 / $ 116,616
The former department store is being converted into 78 luxury apartments, combining Art Deco history with modern conveniences. These managed apartments start from just £83,000 and are assured to produce 8.5% annual gross income for 5 years.
This is a unique opportunity to generate high cash flow from Danum House, a Grade II Listed landmark, in a growing UK city.
Located in Doncaster, this South Yorkshire city is thriving with buoyant rental demand and a growing economy. Both are fuelled by its significant regeneration programme, with a £300 million redevelopment of its town centre underway. As Amazon opens a third distribution centre in Doncaster and Boeing build a new £20 million factory in the area, economic growth is expected to continually rise.
Danum House is just 200 metres from the train station - ideal for professionals seeking high-quality accommodation. It is also conveniently located just 9 kilometres from Sheffield's international airport. The former department store is being converted into 78 luxury apartments, combining Art Deco history with modern conveniences. Residents will benefit from full concierge and business services, while the building's 1930s staircase will lead up to an exclusive rooftop cinema.
Prices start from £83,000 for a 1-bed apartment, ranging up to £130,000. The apartments will generate high cash flow, with an annual gross yield of 8.5% assured for five years. After the initial five-year period, owners at Danum House are free to choose whether to retain the services of the existing management company and rent the property as a serviced apartment, adopt the existing tenant and self-manage or make other alternative arrangements.
Financing of up to 70% LTV is also available subject to eligibility: invest from under £34,000 and let out units without the five-year rent assurance. Although capital growth potential is genuine (according to Zoopla, Doncaster’s average house price remains 70% cheaper than London, 13% cheaper than Liverpool and 17% cheaper than Manchester), this is very much a yield investment - whether bought with or without a mortgage.
Units can be reserved for 5% of the purchase price, with 25% payable on exchange of contracts within 28 days. The balance is then to be paid upon completion (no later than Q2 2018).