Radbourne Street, Derby, Derbyshire

Article 4 incoming in Derby making these up-and-running assets highly sought after.

Attractive High-Yield HMO Investment Opportunity
Property Address: 42 Radbourne Street, Derby, DE22 3HB
Property Type: 6-Unit HMO comprising of 2 Studios and 4 Ensuite Rooms
Management: Professionally Managed by Number 1 Rooms

Prime Location in Derby's Thriving Property Market

Derby, a key city in the East Midlands, presents an appealing investment landscape, particularly for HMO properties. The property at 42 Radbourne Street, located in the popular DE22 area, offers proximity to Derby's city centre, making it highly attractive to both working professionals and students. Derby's economy is powered by leading employers such as Rolls-Royce, Toyota, and Bombardier, which are prominent in the aerospace, automotive, and advanced engineering sectors. This strong industrial base contributes to a high demand for rental accommodation from professionals working in these sectors. Additionally, the University of Derby further boosts the rental demand from its large student population, ensuring consistent tenancy throughout the year.

Exceptional Transport Links and Connectivity

The property benefits from excellent transport links, making it an ideal choice for professionals and students alike. With close access to major motorways including the A38, A50, and M1, Derby is well connected to nearby cities such as Nottingham, Birmingham, and Leicester. Derby railway station offers fast and frequent services to London and other key cities, making it a convenient location for commuters. Local bus routes enhance accessibility to the city centre and surrounding areas, offering residents easy access to work, study, and leisure amenities.

Regeneration and Long-Term Growth Potential

Derby is undergoing significant regeneration, with major projects such as the Becketwell redevelopment and the Derby City Centre Masterplan 2030, which aim to enhance the city’s infrastructure, housing, and leisure offerings. These initiatives are expected to drive up property values, making it an excellent time for investors. The local area surrounding Radbourne Street is well-equipped with amenities such as parks, shopping centres, restaurants, and cultural attractions, contributing to a high quality of life for tenants.

Financial Summary

Income Breakdown (Monthly):
Room 1: £550.00
Room 2: £525.00
Room 3: £550.00
Room 4: £550.00
Room 5: £749.00
Room 6: £799.00
Total Monthly Income: £3,723.00
Annual Income: £44,676.00

Expenditure Breakdown (Monthly):
Gas and Electric: £200.00
Water: £35.41
Council Tax: £145.18
TV License: £26.00
Broadband: £44.40
Cleaner: £50.00
Management: 8%+vat of rent (£357.40 per month)
Total Monthly Expenditure: £858.39
Annual Expenditure: £10,300.68
Net Annual Income: £4,357.32 (calculated as Total Income - Total Expenditure)

Gross Yield: 11.17% (calculated as Annual Income / Sale Price)

Net Yield: 8.70% (calculated as Net Annual Income / Sale Price)

Investment Highlights

Desirable Location: Situated in a prime residential area of Derby, close to the city centre and major employers, attracting both professionals and students.
Attractive Yields: Generating a gross yield of 11.31% and a net yield of 8.70%, with low operating costs, this property offers a high return on investment.
Strong Demand: The proximity to major employers and the University of Derby ensures consistent tenant demand and a fully occupied property year-round.
Regeneration Potential: Ongoing city regeneration projects like the Becketwell redevelopment are set to increase property values and rental demand, providing excellent capital growth opportunities.
Professionally Managed: The property is managed by Number 1 Rooms, ensuring smooth day-to-day operations and minimising the involvement required from investors.

Conclusion

The property at 42 Radbourne Street, Derby, represents a solid investment opportunity in one of the East Midlands' key cities. Offering strong rental yields, a well-managed structure, and benefiting from Derby's growing economy and regeneration, this property is an excellent addition to any portfolio. With its low operating costs and high tenant demand, this HMO is poised to deliver sustained financial returns for investors.

HMO Sales Expert are specialists within the HMO and multi-unit marketplace across the UK. Our experienced team has a combined 100+ years of specific HMO experience including investing, managing, developing, valuing and selling. Every property is exclusively listed, direct to landlord, visited and quality-checked by our team and is sold with NO BUYER FEES or reservation costs. Full access to every financial detail and a pro-active and time-served team to assist you.