The Post House - One bedroom apartments in Swansea, UK

- Prime City Centre Location
- Projected returns of 9% per annum ( 6% NET)
- 75% Loan to Vale Mortgages available
- Fully furnished apartments with flat screen television
- Only £20,000 cash investment required
- Full leasehold ownership - Easy to sell on in future
- Walking distance to Swansea University and The Metropolitan University
- Tenants guaranteed year one with full rental management in place
- Fully hands off hassle free investment.

The Post House is a new development of 38 self contained student apartments in Swansea City Centre. The building was formally the central Post Office of Swansea. The development is located in the heart of Swansea City centre within 2 miles of both university campuses. It will comprise of 7 Penthouse apartments each with its own outside seating areas and 31 self contained apartments with their own kitchen and shower rooms within. There is also a separate laundry room facility with communal seating area.

The building will have secure door entry systems and internet accessibility. The 4th floor has the 7 Penthouse units with the large balcony's wrapping round the building. These will have great views over the town towards the sea and Mumbles light house. Swansea has two large universities with a combined student population of over 16,000. Only 24% of students are housed in university owned accommodation, the other 12000 have to find their own living accommodation with private sector HMOs etc

The Post House - The Units
The units available range from the standard units found on the ground floor up to the third floor, with the top floor comprising of penthouse units with their own private balcony. Apartments range in size and shape and this is reflected in the sales price and their relative position on the development.

The Post House - The Investment
Swansea is home to two universities, Swansea University and Swansea Metropolitan University, both of which have a combined total of over 16,000 full time students studying at their various campuses. Swansea University has outlined plans to expand and create a new campus to the south of Fabian Way, to the east of the city centre.
 
The two universities provide accommodation for approximately 24% of full time students in Swansea and the private sector provides circa 1% of accommodation (including this development). Therefore approximately 75% of full time students in Swansea are unable to obtain University or purpose built private sector accommodation.
 
This presents a great opportunity for investors to make consistently high rental returns and provide accommodation for the 3 out of 4 students that currently require it. This amounts to a shortfall of over 12,000 units that would need to be built to meet current demand. This has had a positive impact on rental returns with the student accommodation sector rising by over 10% per year since 1995.

The Post House - Example Breakdown Of Costs
Purchase price of £63,855
Reservation fee of £2,800 covering all costs and legals 
15% required within 45 days of reservation £9,578
10% on completion £6,382
Total cash required to purchase = £18,760

Annual Rental Return of £6,500 per annum
10.3% rental return per annum

75% Loan to Value mortgage on completion
(additional mortgage related costs may apply)
(subject to status)
 
Rental guarantee year one
The gross rent is guaranteed by the developer year one at £6,500 a year for standard units and £7,200 for penthouse units. From this their will be costs of £750 maintenance/building charges, approximately £250 ground rent and 12% of the rental income for the rental management.

Due to the project being in a prime city centre location, rental returns here are consistently high and therefore the developer is guaranteeing your first year returns so as to make your purchase comfortable.

Approximate running costs year two onwards
Rental demand is high and the yields experienced in year one should continue or grow from year two onwards. The current estimations from the university and of experience in the area supports these yields. Maintenance including all insurances/electricity approximately - £750
Ground rent approximately £250 per annum Management at approximately 12% of rental income.

Therefore taking out all ongoing expenses, on standard apartments the NET rental return actually goes up to around 6.5% year two rising in line with the market.

There following floor plans are available for this property