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 2-bed apartment in Birmingham?
Quickly becoming one of the most popular property investment assets, 2-bed apartments are in strong demand, offering unprecedented space and flexibility for residents. This hasn’t gone unnoticed by developers who are implementing more 2-bed apartments into builds, especially in city centres, ready to attract working couples and young professional sharers.
Investing in a quality 2-bed apartment with plenty of space, all located within a bustling hotspot can quickly turn into a lucrative investment. If the chosen location is in an up-and-coming market such as Birmingham, demand is already skyrocketing following huge amounts of inward investment and these developments are at a premium.
Generational Tenant Demand
As city centres become some of the most desirable locations to live in the country, a new generation of residents is emerging. ‘Generation Rent’ want to maximise space and affordability without giving up living in the heart of the action. Whether it’s a prime city-centre apartment or situated just outside, flexibility is a key driver in the increased demand.
That means affordable apartments with easy access to high-skilled jobs are like gold dust – which is why commuter-friendly towns such as Slough, Basingstoke and Bicester are performing above average. These regions offer direct access to the capital and yet property prices are nearly half that of London.
Tenants are increasingly focused on getting the most square feet for their money and according to ‘Homes and Property’, two-bedroom properties and larger one-bedroom properties are more likely to attract tenants, despite rents usually being higher.
In research by Zoopla, 2-bedroom apartments are recognised as the optimal property for maximising rental yields with an average yield of 5.40%. 2-bedroom apartments beat all of the competition, leading the next asset type by nearly 0.50% and racing ahead of 2-bedroom houses which earn on average 4.80%.
For investors, it’s easy to see that the ideal buy-to-let property is a 2-bedroom apartment in a premium location – providing the new wave of renters with a spacious home surrounded by everything they’d need in day-to-day life. Obviously, location plays a huge part in working out rental yields and cities such as Birmingham are seeing closer to 10% in the most high-performing areas.