Nineteen Keel Wharf

Buy to Let - United Kingdom, Liverpool
Mortgages: Up to 75% LTV
Minimum Cash Investment: £78,323
27.82% - Max Year 1 Net Yield on Cash

Located in Liverpool’s thriving King’s Dock area, these waterfront apartments next to the M&S Bank Arena are ideally placed to attract business and leisure visitors. The development is just a few minutes’ walk to major landmarks and city centre entertainment, including the BT Convention Centre, shops and restaurants, as well as the business district – convenient amenities that will ensure demand from guests year-round.

The property is a collection of 46 2-bed apartments, which are undergoing refurbishment that will finish in March 2020. While this completion date is a long way off, the risk of investing is reduced because buyers are purchasing a unit in an existing building – they are currently being rented out but will be closed from 31st July 2019 for refurbishment. On-site facilities include a cafe and parking, plus a 24-hour reception with secure luggage storage that will provide the kind of service expected of the short-term lettings sector.
The apartments boast high quality fittings and floor-to-ceiling windows that offer waterfront and city views. Furniture packs are available for £4,000 to compliment the premium kitchen appliances and en-suite bathrooms, bringing luxury, space and privacy to compete with hotel accommodation in the area.

Prices start from £164,450 up to £244,480, with a reservation of only £2,500. Financing is available up to 75% LTV in principle, combining the affordability of the buy-to-let with the higher yields of the serviced apartment sector. With only 25% due on exchange, the minimum cash investment starts from just £55,803. While yields are not assured or guaranteed, the serviced accommodation industry typically generates higher returns than a residential property, with rental income of up to 16% gross and 13% NET forecast. This is based on previous occupancy levels of 68%, taking into account the lack of long-term tenancies associated with traditional buy-to-let properties. Once purchased, the apartments retain a residential title, which allows them to be used for short term lettings and to be sold on the secondary market in the future to other buyers seeking a serviced accommodation investment. Investors can manage the properties themselves, but specialist short-term letting services are available from SkyLet for 12% per annum, which will take care of marketing and maintenance of the unit – perfect for investors seeking a hands-off, high cashflow product.

 

KEY FACTS

  • Waterfront apartments next to the M&S Bank Arena
  • Few minutes’ walk to major landmarks and city centre entertainment
  • Refurbishment that will finish in March 2020
  • 24-hour reception with secure luggage storage
  • Luxury- space and privacy to compete with hotel accommodation
  • Prices start from £164450
  • Financing is available up to 75% LTV
  • Minimum cash investment starts from just £55803

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