Listed for £500,000
October 9, 2024
Sold for £105,950
2001
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Attractive Quality Student HMO Investment Opportunity Inside In-Demand Article 4 Area
Property Address: 31 Wadbrough Road, Sheffield, S11 8RF
Property Type: Fully Licensed 7-Bedroom, 4-Bathroom HMO with Living and Dining Area
Property Configuration: Bathroom (First floor), Shower Room (First Floor), Toilet (Ground Floor), Shower Room (Ground Floor)
Conversion Date: Converted into an HMO in 2010
Prime Location in Sheffield's Student and Professional Hub
Located in the vibrant and desirable S11 area of Sheffield, the property at 31 Wadbrough Road is an excellent investment opportunity, particularly for investors looking to capitalize on the strong rental demand from both students and professionals. This quality HMO is ideally positioned near Ecclesall Road, one of the city’s most popular streets, lined with bars, restaurants, shops, and cafes. The area is renowned for its bustling student population, making it a prime location for rental properties catering to students and young professionals.
Sheffield’s economy is diverse and resilient, driven by key industries such as advanced manufacturing, education, and healthcare. Major employers in the area include The University of Sheffield, Sheffield Hallam University, and Sheffield Teaching Hospitals. These institutions generate a consistent and high demand for rental accommodation, particularly for quality HMOs like the one on Wadbrough Road.
Excellent Transport Links and Connectivity
Sheffield offers excellent transport connections, making the property highly appealing to a broad range of tenants. The city’s train station provides regular services to major cities like Manchester, Leeds, and London. Additionally, Sheffield's road network, including proximity to the M1 motorway, connects it to other key locations across the UK. Public transport within the city is extensive, with reliable bus and tram networks that provide convenient access to the city centre, universities, and surrounding areas. This makes Wadbrough Road a perfect choice for students and professionals who require easy access to both city amenities and academic institutions.
Sheffield's Regeneration and Capital Growth Potential
Sheffield is currently undergoing significant regeneration efforts, most notably the Heart of the City II scheme, which aims to transform the city centre with new retail, office, and residential spaces. These developments promise to boost property values and drive economic growth in the area, offering strong capital appreciation potential for investors. Additionally, Sheffield's proximity to the Peak District National Park makes it an attractive place to live, offering a blend of urban convenience and high quality of life.
Financial Summary
Income Breakdown (Monthly):
Room 1: £433.00
Room 2: £433.00
Room 3: £433.00
Room 4: £433.00
Room 5: £433.00
Room 6: £433.00
Room 7: £433.00
Total Monthly Income: £3,031.00
Annual Income: £36,372.00
Expenditure Breakdown (Monthly):
Gas: £0 (Paid by tenants)
Electric: £0 (Paid by tenants)
Water: £0 (Paid by tenants)
Council Tax: £0 (Paid by tenants)
TV License: £0 (Paid by tenants)
Broadband: £0 (Paid by tenants)
Cleaner: £0 (Paid by tenants)
Management: £400.12
Total Monthly Expenditure: £400.12
Annual Expenditure: £4,801.44
Net Annual Income: £31,570.56 (calculated as Total Income - Total Expenditure)
Gross Yield: 6.31% (calculated as Annual Income / Sale Price)+
Investment Highlights
High Demand Location: Prime location in the student-friendly S11 area, near Ecclesall Road.
Attractive Yields: Offering a gross yield of 7.27% and a net yield of 6.31%, with minimal overheads beyond management costs.
Tenant-Paid Utilities: All utility and service costs, including gas, electric, water, and internet, are paid by the tenants, reducing operational costs for the landlord.
Strong Rental Demand: Located near Sheffield’s major universities and employers, the property is in high demand among both students and professionals, ensuring high occupancy rates.
Regeneration Potential: Sheffield's ongoing city centre redevelopment projects promise future capital growth.
Conclusion
31 Wadbrough Road is an attractive and well-positioned HMO, providing a solid rental income with minimal operational expenses. Its location in a high-demand area, coupled with the city's strong economic fundamentals and regeneration efforts, make it an ideal long-term investment opportunity with potential for both strong rental yields and future capital appreciation.
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