8 Bed HMO Huddersfield (Example Listing)

Investor Opportunity: High-Yield 8-Bed HMO in Huddersfield

Property Details:

• Property Price: £280,000
• Rental Income per Room: £125 per week
• Total Weekly Rental Income: £1,000 (£125 x 8 rooms)
• Annual Rental Income: £52,000

Expenses Breakdown (Estimated):

• Utilities & Bills (Gas, Electric, Water, Wi-Fi): ~£6,000/year
• Management Fees (10% of rent): ~£5,200/year
• Maintenance Allowance: ~£2,500/year
• Insurance: ~£1,000/year

Total Annual Expenses: ~£14,700

Net Rental Income:

• £52,000 (Gross Income) - £14,700 (Expenses) = £37,300/year

ROI (Return on Investment):

• Cash Purchase Example:
  • Net Income: £37,300
  • ROI = (Net Income ÷ Property Price) x 100
  • ROI = (37,300 ÷ 280,000) x 100 = 13.3%
• With Mortgage Example:
  • Mortgage Loan (75% LTV): £210,000
  • Deposit: £70,000
  • Interest (5% APR): ~£10,500/year
  • Net Profit (After Mortgage Interest): ~£26,800/year
  • ROI on Deposit = (Net Profit ÷ Deposit) x 100
  • ROI = (26,800 ÷ 70,000) x 100 = 38.3%

Why Invest in This Property?

• Strong Rental Demand: Huddersfield is a popular area for students and professionals, ensuring high occupancy rates.
• Attractive Yield: The property offers a robust gross yield of 18.6% based on annual rent.
• Low Entry Price: A competitive property price for an 8-bed HMO in a sought-after area.
• Fully Compliant: Potential to meet all HMO licensing requirements (check with local council).