HMO investors can net a 10% return by turning a 3\u20134-bedroom property into a 6-bed, analysis from debt advisory and investment firm Excellion Capital has revealed.<\/p>\n
This is despite the average cost of such a conversion coming to around \u00a368,000.<\/p>\n
The typical HMO in England commands a monthly rent of \u00a3711 per room which, when accounting for six occupants, comes to a total monthly income of \u00a34,269.<\/p>\n
Robert Sadler, vice president of real estate at Excellion Capital, said: \u201cWe are seeing a lot of property investors in the residential space turn their attention to the bustling HMO market, especially in the regions.<\/p>\n
\u201cParticularly outside of London and our other major cities, investors are snapping up relatively cheap three or four-bed terraced homes and converting them to six-bed HMOs with extraordinary results when it comes to returns and yields.<\/p>\n<\/p>\n
\u201cHMOs, with a few exceptions, are very popular with lenders. Because the required conversion works tend to be relatively light, investors can usually fund both the acquisition and the works with a bridge loan.\u00a0\u201c<\/p>\n
The average sold price for a three- or four-bedroom house in England currently stands at \u00a3444,300.<\/p>\n
Meanwhile, the cost of converting a property into an HMO works out at an average of \u00a311,300 per bedroom.<\/p>\n
HMO yields are even higher in some regions of England, as in the North East the average investor can expect a yield of 12.5% after converting a three or four-bed property into a six-bed HMO.<\/p>\n","protected":false},"excerpt":{"rendered":"
HMO investors can net a 10% return by turning a 3\u20134-bedroom property into a 6-bed, analysis from debt advisory and investment firm Excellion Capital has revealed. This is despite the average cost of such a conversion coming to around \u00a368,000. The typical HMO in England commands a monthly rent of \u00a3711 per room which, when […]<\/p>\n","protected":false},"author":1,"featured_media":495,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-494","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-second-home"],"yoast_head":"\n