This 4 bed property on the market with Castlehill, is another re-development opportunity in the increasingly popular Woodhouse area of student Leeds.
When I first started in student accommodation 7 years ago, Woodhouse didn't have the best of reputations. But as many of the outlying halls of residence have been shut down over recent years, to be replaced with city centre or on campus halls, students are increasingly looking at Woodhouse as the place to spend their second and third years. Having spent their first year being close to Uni, and the bars and clubs of Leeds, many of them are looking for second and third year accommodation as close in as possible, and Woodhouse obviously ticks that very important box.
And as landlords are being forced to look for bargains elsewhere as 7% to 8% yields are becoming the norm in Hyde Park and central Headingley, more and more properties are being snapped up around the University and in Woodhouse for cheaper prices than they would be able to find in the more traditionally popular areas. Many of these properties are then being refurbished to a very high standard and rents of between £85 and £100 per person per week are becoming commonplace. This gives the opportunity for some fantastic yields.
We manage a few properties on Delph Mount and the adjacent Cliff Mount, and they lend themselves very well to being 6 bed properties. In this particular house, the cellar has already been dug out and converted to living accommodation, so would easily be transformed into two bedrooms and a bathroom.
The layout of the rest of the house is fine, with the only addition required for a Jack and Jill bathroom on the top floor. It needs a complete refurb - new everything, strip the walls and re-plaster throughout etc, but that should be achievable for around £60,000.
All the bedroom sizes would be great, and if the refurb was done to the right standard I'd be confident of getting £89 per person per week, or an annual rent of £27,768. So if you were to pay the asking price you'd be looking at a very healthy yield of around 10%.