Property Type:

Real

Business Location:

A leading university location: The development is just 0.8 miles from Greenwich University, which has in excess of 13,000 students. The Greenwich Campus (University of Greenwich) is a World Heritage site which combines modern facilities with beautiful buildings. The campus is centred on three baroque buildings designed by Sir Christopher Wren in the 17􀇦􀇚 century. The University of Greenwich’s schools and institutes have a proud and historic tradition of helping its students attain academic excellence in a diverse range of disciplines and fields

Premise Details:

The Location: Greenwich The development is within walking distance to Greenwich town centre, a five minute walk away from the o2 arena on Greenwich Peninsula and just two miles from the Olympic Village. Greenwich is a World Heritage Site and home of Greenwich Mean Time and the Meridian Line. Situated on the south bank of the river Thames, Greenwich is one of London’s most vibrant and historic boroughs, with famous landmarks including the National Maritime Museum, the Royal Observatory and Sir Christopher Wren’s Old Naval College. The area is also hugely popular for its many independent shops and street markets, pubs, clubs, restaurants, parks, museums and green spaces. Excellent transport links put the capital and surrounding areas in easy reach. Greenwich is just 20 minutes from central London and is served by Docklands Light railway, tube, rail, bus and riverboat. All these factors combined make Greenwich a leading choice for both national and international students. (Images on this page show Greenwich landmarks, Greenwich Hill and the ‘village’.)

Living Accommodation?

Student property falls into the commercial property model and therefore differs from residential in many respects. As an investor in commercial property, you will most probably invest with cash or have some form of commercial finance backing. The main difference between commercial and residential from a valuation perspective is that commercial value is based on the certainty of the future income stream, i.e. value is worked out on the achievable yield. 1. Fluctuations in the local residential market will not have a direct impact on a commercial property valuation; and values are not negotiable and/or variable as per the residential market. 2. Off-plan developments are considered ‘higher risk’ than an already-performing property asset, so the yield is high and the purchase price is low. In this instance: Off-plan purchase price: £85,000 Gross rental income: £9,435 (an 11.1% gross yield) Net rental income (after mgmt fee and sinking fund): £7,685 (a 9% net yield) We can see how this investment brings in a good, passive income from your performing property asset, but what are your exit strategies and how is value added? Let’s say the development is up and running as a performing property asset, rather than being off-plan as you bought it. The risk is now lower, so your secondary market (presumably another investor who wishes to purchase the unit) will not expect a 9% net yield as you did when purchasing off-plan

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