My Fabrick Square 1 Bed apartment increased by 20% during the build period. As I had only put down a 30% deposit I nearly doubled my starting investment in 18 months! I have invested further with SevenCapital.
I recently completed on my apartment at Fabrick Square and it let straight away with a net yield greater than 7% , which is better than I expected. The team were very honest and accommodating throughout the whole process so my experience was great, and I have since reserved a further two apartments in another development. I would recommend SevenCapital.
Why invest in a new 1-bed apartment in Birmingham?
High Demand
Depending on your strategy and location, investing in a 1-bed apartment can be an ideal investment opportunity. If you’re looking at targeting professional tenants or even a couple, particularly in Birmingham city-centre or a location with easy transport links to work, 1-beds offer an in-demand, affordable alternative to 2-bed apartments.
Many modern 1-beds are contemporary, stylish and manageable, rising in popularity with young professionals that want all of the cities amenities on their doorstep without paying inflated rent.
Rental Yields
Studio and 1-bed apartments are also attractive for investors because of the high capital appreciation and excellent rental yields they provide, especially in over-performing regional cores such as Birmingham.
In research by Zoopla, 1-bedroom apartments are the second-highest performer in terms of average rental yields with 4.90%, beating out 1 and 2-bedroom houses as well as apartments with 3 or more bedrooms.
Interestingly, in this research, 1-bedroom apartments also outperform 1-bedroom houses by a large margin, demonstrating the potential available for investors and answering a common question these days – is a 1-bedroom apartment a good investment?
Capital Gains
So what about investing in 1-bedroom apartments for capital gains? As a second income, earning capital gains is often at the top of many investors objectives and 1-bedroom apartments can suit strategies focused around capital gains perfectly.
In a survey of UK professional landlords, Amicus Finance found that 25% tipped 1-bedroom apartments to offer the best capital gains over the next 12 months. For targeting students and graduates, 1-bed apartments are an attractive proposition, offering these younger residents more independence while remaining affordable.
