Investors paid 31.74p per share in the New Listing for this property, and it became available on the Resale market December 14th 2016.
‘The Heights’ is an attractive contemporary building in the Black Country. These three ungeared flats should benefit from the £450m regeneration of West Bromwich Town Centre, as well as plans for High Speed Rail 2 in Birmingham. View a short video from our Director of Property on why this is a great investment.
- The investment comprises 3 out of 55 flats in this modern block, and is offered without gearing.
- By purchasing these flats at their Investment value as opposed to their Vacant Possession Value, investors will benefit from a higher net dividend yield than they would achieve by purchasing individual flats.
- An attractive area for professionals willing to commute, our properties are less than 1km away from Tame Bridge Parkway railway station which takes you to Birmingham New Street station in 16 minutes.
- Our exit strategy is to sell the units individually rather than as a single investment, thereby realising the discount that we have secured from buying in bulk.
The property is being offered without gearing to provide investors with an opportunity to diversify their portfolio.
The investment comprises 3 two-bedroom flats within a 55 flat residential block. By purchasing these flats at a bulk discount investors will benefit from a higher dividend yield than they would achieve by purchasing individual units.
The properties were acquired in good condition, and the Chartered Surveyor's report identified no material issues. We have made a provision of £2,500 for any remedial works that further testing reveals. There is also a total provision of £600 for furnishings.
The total rent forecast for the 3 units is £23,400 per annum. As the number of vacant flats may vary month to month, we have factored into our forecasts an annual void rate of 1.9% for prudence.
At the forecasted level of rent, Gross Rental Yield would be 5.83% and the forecast Dividend Yield 3.42% (fully accounting for and after purchase costs, furnishings, forecast maintenance, annual voids, corporate taxation and all fees). From April 2016 UK taxpayers are entitled to a £5,000 annual dividend allowance. See our FAQs here for more information.
For prudence, we have not included any growth in rental values in our forecasts.
This transaction was approved by our RICS qualified Director of Property.
The investment comprises 3 two-bedroom flats within a 55 flat residential block. All flats contain a living room, kitchen and bathroom. We present here floorplan layouts for all 3 flats.
- Share Valuation
- House Price Index
- Rental Income Breakdown
- Latest Valuation
- Latest Share Valuation
- Latest Property Value
- Amortised Purchase Costs
- Latest Valuation
Note: The estimates provided do not constitute valuation advice; it remains your responsibility to determine valuation.
The HPI is an official statistic that captures changes in the value of residential properties across England and Wales. It is published by the Land Registry, which is a UK government organisation.
Note: Past performance is not a reliable indicator of future results.
Residential property investment is a total returns product. This information is the income component only. Increasing capital values have historically driven most of the return.
- Gross Rent per year (E)
- Service Charges
- - £5,325
- Gross Rental Revenue
- = £18,075
- Gross Rental Yield
- - £6,681
- Letting and Management
- Property Insurance
- Allowance for possible voids
- Maintenance Allowance
- Corporation Tax
- Dividends per year
- = £11,394
- Dividend Yield
Note: UK taxpayers are currently entitled to a £5,000 annual dividend allowance. This means that the total income related tax you pay is no greater than if you were to own the property directly. Gross rent and dividends may be lower than estimated. Tax treatment depends on individual circumstances and may be subject to change in future. See FAQs for more information on taxation. The Dividend Yield assumes an investment at the Latest Valuation.
3 flats in The Heights, B71 3AZ,