Buy to Let Property

HMO Buy to Let Investment in Doncaster

From: £215,993
Option to view operational HMOs before going ahead with investment
Fully managed HMO property
Close to Amazon warehouses and Lidl HQ
Developer has 25 years' experience in the industry
Achieving 10% net income
Up to 16.46% returns with bank finance

HMO property in popular area for working professionals


This property will be converted into a 5-bedroom HMO with a conservatory. Each room will be let separately and investors can expect to achieve a net yield of between 10 - 16.46% depending on initial monetary input.

Amazon's warehouses and a Lidl's HQ is close by, making the area popular with working professionals. We expect the property will be tenanted quickly due to the demand from workers wanting to be close to their place of employment.

Key Figures

£215,993
Starting Price

10%
Net Yield

Q1 2021
Completion Date

Investment Details

More people are choosing to live in HMOs as it is one of the most affordable ways to rent property. Houseshares have been common for some time in London due to high property prices, but they are gaining popularity in many other parts of the country. People enjoy the social aspect of sharing property with others, and the importance of having a support network has been amplified by the Coronavirus pandemic.

HMO Property in Doncaster

Property in Doncaster available on a freehold basis. Once bought, the developer will begin renovation work which takes an average of eight weeks. The renovation work will include building a conservatory that will function as a living room, and transforming the original living room into a bedroom. Upon completion, there will be five bedrooms available to let for an average of £100 per week each. This allows investors to achieve a return of 10.27% if paying in cash.

Renovation work, professional fees, the HMO licence and the furniture pack is included in the purchase price of £215,993, and a net return of 16.46% is attainable if the property is remortgaged.

The developer will handle the management and letting of the property, which means it is fully hands-off for the investor. After renovation work has completed, the HMO property will be advertised on spareroom.co.uk by Bespoke Lettings. This helps with low rental void periods, and properties are usually tenanted within 2-3 weeks of refurbishment. The company is currently achieving occupancy rates of 91%.

With regards to the developer's history, they have been successfully operating for 25 years, specifically focussing on HMOs in the Doncaster / South Yorkshire region. All properties are stripped back and entirely rewired, essentially creating a new property.

Tenants have peace of mind that all bills are included, so there will be no issue of dividing up costs between housemates and regularly taking meter readings. Once complete, the property will be ready to move in, being fully furnished with all necessities provided such as cutlery and crockery. The conservatory will function as a living area so tenants will have more space to socialise with other housemates. Shops and other amenities are close by for convenience and the area is well-served by transport links so it is ideal for those working in the surrounding warehouses or in Doncaster.

The Numbers

Ground Rent:

Number of Units:1

Service Charge:

Prices:215,993

Leasehold:Freehold

Post Office
Convenience Store
Asda
Lidl Distribution Centre
Amazon Fulfillment
  • 5 bedrooms let on an individual basis
  • Brand new conservatory functioning as living area
  • Fully rewired and new plumbing
  • Close to Amazon warehouses, shops and Lidl HQ
  • £5000 commitment fee to reserve
  • After completion of contract, 50% of build cost is required
  • Second 50% payment due halfway through build
  • Once work completed, £5000 commitment fee is refunded

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