There are over 4,900 flats in York, YO1 and this represents around 72.13% of the housing stock in this postcode alone, with the national average being nearer 18.09%. The average price paid of flats with one or two bedrooms in York is around £173,580, which is approximately 2.09% lower than 12 months ago.
You can buy a one bedroom flat in the development on Leetham House, for a £170,000. If a landlord put down a £42,500 deposit and borrowed the rest, they could achieve around £725 per month in rent and consequently, yields could reach around 5.11% per year. However, you must remember that every landlord’s tax and interest rates are different, so it is essential to research your investment carefully before committing.
Finally, let’s not forget about the potential increase in capital value of the property. I was looking at the one-bedroom flats in Centurion Square development and found that one sold for around £86,950 way back when, in 2001 (those were the good old days!). The same properties in this development sell nowadays for circa £170,000, a very healthy capital appreciation of 95.40%.
If you would like some advice about what could make a good investment, please give me a call on 07775 828759, always happy to help.