Local Investment Examples

At Belvoir Cambridge, we pride ourselves on our dedicated service to new and existing clients. As well as managing property for existing landlords, we help investors who are looking to buy property to develop or let. Belvoir can offer you free advice in the following ways:

  • Expert insight on the Cambridge and Peterborough rental market
  • One-to-one investment advice meetings
  • Buy To Let workshops
  • Accompanied viewings to assess potential properties

Investing in Property

Investing capital in property is seen by many as sensible, stable and safe: not only is your money retained in a physical asset but that capital is likely to grow in value over time. Investing in property should give you a good return on investment; whether that is through long term capital growth or regular income from rent or in some circumstances, both.

Both Cambridge and Peterborough are great places to invest, however the property markets are very different: Peterborough has lower than national average house prices with impressive rental yields. Cambridge has above national average house prices with a long history of strong capital growth, smilar to many parts of London.  Demand for converted multi-let properties ( let as individual rooms with en-suite and communal living areas) is high in both cities; these types of properties often provide the best returns.

Investment Examples

These six examples from Peterborough and Cambridge show real property for sale including their sale values and projected return on investment. We have deliberately chosen three types of investment property: 1) a standard 2 bedroom apartment; 2) a large house which can be converted into a multi-let property and 3) a commercial building which has potential to be converted into an apartment block.

The following prices and estimated ROCE values are correct in September 2014. They are subject to change. Although some properties are available for purchase at time of publishing please note these are for example only to demonstrate average property values and returns.

Standard Investment – Peterborough

Hartley Avenue, PE1

A great opportunity with potential excellent yields. Smart, newly-built apartment close to the city centre and ideal for professional couple.
  • Bedrooms: 2 Bathrooms: 2
  • Total floor area: 62m²
  • Improvements needed: none. Could let as furnished.
  • Sale Price: £110,995 (2014)
  • Rental Price: £700pcm
  • Annual gross yield: 7.5%
  • Total capital employed: £27,750 (for deposit and improvements)
  • Pre tax Return on Capital Employed:  11.06% *
*Based on 25% deposit, 2.9% loan,  £2081 mortgage arrangement fee and standard management fees.

 

Standard Investment – Cambridge 

Glenalmond Avenue, CB1

An ideal investment opportunity centrally located: only 10 minute cycle to Train station & City centre, providing perfect accommodation for professionals.
  •  Bedrooms: 2 Bathrooms: 2
  • Total floor area: 67m²
  • Improvements needed: none. Could redecorate.
  • Sale Price: £375,000 (2014)
  • Rental price: £1350pcm
  • Annual gross yield:  4.3%
  • Total capital employed: £93,750 (for deposit and improvements)
  • Pre tax Return on capital employed:  4.9% *
*Based on 25% deposit, 2.9% loan, 2.5% mortgage arrangement fee and standard management fees.

 

Multi-Let – Peterborough


All Saints Road, PE1

This attractive Georgian town house includesthree spacious reception rooms, providing potential to convert into 5 bed property.

  • Bedrooms: 3 Bathrooms: 2
  • Improvements needed: convert lounge and family room to bedrooms and downstairs toilet to shower room
  • Sale price: £215,000
  • Rental price: £500 per room, per month
  • Annual gross yield:  13.9%
  • Total capital employed: £72,350 (for deposit and improvements)
  • Pre tax Return on capital employed: 15.98%*
*Based on 25% deposit and 3.99% loan, 3% mortgage arrangement fee  and standard management fees.

 

Multi-Let – Cambridge

Pakenham Close, CB4

Ideal location, only 15 minute cycle to City Centre. Popular renting option in Cambridge due to high property prices. Suitable for professionals and students.

 

  • Bedrooms: 4 Bathrooms: 2
  • Improvements needed: convert lounge and garage into bedrooms to make 6 bed property
  • Sale price: £425,000
  • Rental price: £650 per room, per month
  • Annual gross yield: 11%
  • Total capital employed: £106,250 (for deposit and improvements)
  • Pre Tax Return on capital employed: 12.93%*
*Based on 25% deposit and 4.49% loan and 3% arrangement fee  and standard management fees.

 

Change of Purpose – Peterborough

Storeys Bar Road, PE1

Offices with scope for conversion into residential under Permitted Development Rights. Private parking spaces and easy access to transport links. Located in one of the highest employment areas in Peterborough.
  • To create: 12 x 500sqft 2 bedroom, 2 bathroom apartments
  • Estimated usable floor area: 6,142sqft
  • Sale price: £329,000  (£53.56 per sqft)
  • Estimated conversion cost: £50-£80 per sqft
  • Sale value of flat: £100,000 or £200 per sqft
  • Estimated Gross Development value:  £1.2m
  • Estimated pre-tax margin: £240,000

 

Change of Purpose – Peterborough

Bridge Street, PE1

Offices with scope for conversion into residential apartments under Permitted Development Rights. Located in the city centre with easy walk access to Queensgate and Rail Station.

 

  • To create: 22x 500-650 sqft apartments. Mixture of 1 and 2 bedroom.
  • Estimated usable floor area: 14,411sqft
  • Sale price: £700,000   (£48.57 per sqft)
  • Estimated conversion costs: £50-£80 per sqft
  • Sale value of flat: £132,000 or £220per sqft
  • Estimated Gross Development Value: £3.17m
  • Estimated pre-tax margin: £1.3m

 

Interested in Investment? Get In Touch!

For properties in Peterborough please email: luke.clarke@belvoir.co.uk or ring 01733 321500.

For properties in Cambridge please email: georgina.gray@belvoir.co.uk or call 01223 352225.

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