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Wednesday, 24 December 2014

Excellent value in Southampton buy 2 let, why buy new?


This fourth floor two bedroom apartment is a good size at 780 sq.ft and comes with parking and some views. It has an ensuite and bedroom 2 is a good double making it ideal for professional sharers. The property was first listed in early 2014 at £200k but has been reduced to £180k and at that level would be well below its 2010 new build price. It will let well at £950pcm which will yield 6.3% gross. Service charge and ground rent are £1911 p.a. and there are 170 years left on the lease. Net yield is attractive at 5.3%

You have to ask yourself if it is worth paying £60k or £70k more to get into the new towers in Ocean Village or even buy some of the older stock in phase 1 of Ocean Village. Rents maybe higher but a lot of stock will be hitting the market and the new build premium will fade over time. The buy 2 let for the wise man perhaps?


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