May Street, Basingstoke, Hampshire

Description

Property Overview:
193 May Street in Basingstoke presents a compelling investment prospect as a five-bedroom, three-bathroom HMO within the Article 4 designated area, where HMO licensing is tightly controlled, enhancing its value due to limited competition. This semi-detached house spans 1,765 square feet and rests on a 0.07-acre plot. It has been prudently managed by the current owner, with a history of excellent occupancy and many long-term tenants, contributing to its strong income potential.

Location and Amenities:
Located in a vibrant area, the property benefits from proximity to essential local amenities and the Basingstoke College of Technology. It is situated just 0.53 miles from the Basingstoke Rail Station, ensuring excellent transport links. Nearby are several schools rated Good by Ofsted, adding to the location's appeal for family tenants or young professionals. The property's placement within the Brookvale West conservation area may also interest tenants who appreciate historical and aesthetic values of their locale.

Investment Highlights:
193 May Street is a standout investment, generating an annual income of £38,760, with minimal monthly expenditures of £653.25 on bills, equating to a significant return on the asking price of £500,000. The stringent Article 4 area designation ensures a consistent demand for rental units, given the limited approval of new HMO applications. This property's market position is robust, offering both income stability and potential capital appreciation in a competitive rental market.

Income Breakdown (Monthly):

Room 1: £725.00
Room 2: £600.00
Room 3: £665.00
Room 4: £645.00
Room 5: £595.00
Total Monthly Income: £3,230.00

Annual Income: £38,760.00

Expenditure Breakdown (Monthly):

Gas: £100.00
Electric: £175.00
Water: £53.00
Council Tax: £171.00
TV License: £13.25
Broadband: £41.00
Cleaner: £100.00
Management: £0.00
Total Monthly Expenditure: £653.25

Annual Expenditure: £7,839.00

Net Annual Income: £30,921.00

Gross Yield: 7.81%

Commentary:
The room rates may vary slightly by the time of a completed purchase but are accurate at the time of listing. The running costs are accurate as of May 2024. Investors will need to consider their own cost of lending and management structure. The current landlord is happy to discuss their annual maintenance budgets and void/room handover periods with any proceedable buyer, providing further insights into the operational aspects of this investment.

Discover the untapped potential of investing in Houses in Multiple Occupation (HMOs) in Basingstoke, a thriving hub that combines a robust local economy with a strategic regulatory environment to offer exceptional opportunities for property investors. With the implementation of Article 4, Basingstoke has introduced a requirement for planning permission when converting single dwellings into small HMOs. This limitation on new entries preserves the exclusivity of existing HMOs, enhancing their demand amidst a limited supply and providing a unique market advantage for investors.

Basingstoke stands out due to its relatively low saturation of HMOs compared to larger urban centers, presenting less competition and potentially higher occupancy rates. The presence of multinational corporations across sectors such as technology, pharmaceuticals, and insurance underpins a strong employment market, drawing a diverse workforce to the area. This economic vitality not only supports higher average wages but also fuels consistent capital appreciation in residential properties, promising substantial returns on investment through both rental income and property value growth.

The rental market in Basingstoke is buoyed by a wide array of tenants including young professionals, commuters to London, and international workers, all seeking affordable and flexible living solutions. With competitive average room rates that align with the local cost of living and wage levels, HMOs offer a profitable and sustainable investment option. As an investor in Basingstoke’s HMOs, you will benefit from high demand and the ability to optimize rental yields in a market where housing needs continue to evolve.

Invest in Basingstoke today, and position yourself at the forefront of a market with limited competition, strong economic foundations, and a high potential for growth. Your journey into a profitable property investment starts here, in one of the UK’s most dynamic and economically resilient communities.

Additional Information

Income

£38,760