Originally built as an office block, these 1 and 2 bedroom flats on the bank of the River Tees have been converted and were ready for occupation upon completion.
Choices Investments negotiated up to a £15,000 discount from the current market value. Rental values in the area offered investors expected rental yields of up to 9.0%.
Each unit came with a 125 year lease and a ground rent of £350pa. Service charge was payable at £750pa for a one bed and £1,000pa for a two bed flat. The properties were sold fully furnished and include oven, hob and extractor as well as flooring throughout meaning they are the ideal turn key investment.
Demand for rental property in Stockton is very high due to the number of businesses located in the centre of the town as well as those who are looking to commute into Middlesbrough which takes only 6 minutes. Stockton is also home to The University Hospital of North Tees. As this is a teaching hospital, the demand for rental properties is increased with student doctors and nurses preferring to rent than buy whilst in training.
Stockton-on-Tees is a market town situated in County Durham in the North East of England. Stockton is now ranked within the top ten in research compiled by estate agent Hamptons International, based on house price-to-income ratios and the Life Satisfaction Index from the Office of National Statistics showing that it is one of the most affordable places to live in the UK.
The area has a history of heavy industry however with the decline of this sector throughout the Twentieth century Stockton has undergone significant redevelopment. Nowadays, the area is known for the service industry with the Teesdale Business Park located on the south bank of the River Tees. This area is also home to Durham University’s Queen’s Campus.
Further redevelopment of the town is already underway with the £300million Northshore Scheme which will provide further business space, housing, leisure facilities and a new campus for Durham University.
Market Value: £72,500 – January 2016
Purchase Price: £60,000
Rent (pcm): £450
Rental Yield: 9.00%
Mortgage at 70% LTV: £42,000
Deposit Required: £18,000
Mortgage Repayment (pcm) at 4%: £140
Full Management at 10% + VAT (pcm): £54
Ground Rent (pcm): £29.17
Service Charge (pcm): £62.50
Profit (pcm): £164.33
Total Investment: £23,500