Going live on Rightmove today is this piece of land with a prime location in Gillingham being offered at auction with a guide price of £825,000. This is actually being sold by one of my landlords, who did a sterling job getting planning permission for 68 en suite rooms which will rent for £450 per room.
There are 12,000 students studying at the three Universities in Gillingham and plenty of demand for student accommodation.
The income is £450 per room per month x 68 x 11 months (ie. This covers the standard figure of 10 full months rent and 2 half rent months). This totals £336,000 per annum. A figure of 12% – 15% is usually deducted for management fees, utilities and cleaning, so you could expect a net income of £285,600.
If the land is purchased for £825,000, adding Stamp Duty of £56,000, and with the build cost is estimated at £2-2.1m then the total cost (not including financing costs) could be £2,881,000. If you kept the property it would bring a net yield of 10%, a very decent figure.
If you wanted to sell, the GDV (gross development value) would be £3.8m to 4.1m depending on the end buyer’s required yield. You could therefore make between £0.9m-1.2m profit.
This is a very juicy deal and I think the landlord would be open to pre-auction offers from serious buyers.
If you wish to contact him then go through the selling agents as I have no vested interest in this sale.
As always please do your own due diligence as these figures are for demonstration purposes only. If you wanted to chat about Medway Property give me a call on 07944 726676, or email me at hasan@home-share.co.uk.
Medway Property News 
It is great news to all student because builder Planning Permission for 68 Purpose Built Medway for Student Accomodation as soon as possible . Thanks to share this blog which are very crucial for student. Auction Houses In Florida
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