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Search forCouple take £3m out of bank to buy 11 Bristol flats
Thursday, November 06, 2008, 07:53
The unnamed couple snapped up the flats, which form part of the Crest Nicholson Crescent development, near the ss Great Britain.
A spokesman for the development said the couple, who live in North Somerset, “were in a hurry to withdraw their money from the bank”, deciding that to invest in bricks and mortar was a safer option – despite potentially being able to make up to £66,000-a-year more by putting their money in a savings account.
Developer Crest Nicholson said the couple bought 11 two-bed flats in the Halyard and Lanyard sections of the development.
Prices for the flats bought by the couple range from £239,950 for a two-bed on a lower floor of the development, to a penthouse priced at £399,950.
Despite the prices paid, parking at the development is first-come, first-served. basis.
Vicky Dudbridge, of selling agents King Sturge, said: “You could say we were a bit surprised when they walked in to our showroom.
“Originally, the couple wanted eight flats, but then decided on 11 in the current market.
“They took a broad view that, in this market, their money would be better invested in property.
“They deliberately chose two- bedroom apartments of different types because they felt they would offer the best chance of letting.
“They were a normal middle- aged couple, certainly not high-flyers, and have hinted they might buy some more.”
Despite buying 11 flats in one go, the couple did not manage to agree a large discount on the deal.
She said: “They didn’t get a large discount because they were more worried about getting exactly what they wanted.
“We are almost 70 per cent sold in The Crescent building here. From the middle of August to the end of October we had 27 sales. The property market will take time to recover, but at the end of it investors will still have their property and they will have gained an income from renting the property out”.
The Crescent development on Harbourside comprises of 268 apartments, 163 of which have been sold to mainly buy-to-let investors. The deal by the North Somerset couple is the largest purchase of flats by an individual investor – an unnamed firm has already purchased 20 apartments in a previous deal.
Ed Osborn of The Bristol Residential Lettings Co, which handles much of the rental market at Harbourside, said: “The residential market is very good at Harbourside. We have rented out over 30 apartments there since September and are achieving £825 per calendar month for one-bedroom apartments and between £1,000 and £1,200pcm for two-bedroom apartments.
“The rental market remains strong and I am not surprised investors are moving their money into bricks and mortar at the moment as they will at least gain an income from their investment, which is more than can be guaranteed from the banks”.
If the couple managed to rent out all 11 of their properties at an average rent of £1,100 a month it would give them a return of £145,200 per year.
That is £66,300 less than the £211,500 interest paid had the couple chosen to put their money in an Anglo Irish Bank high-return savings account paying 7.05 per cent interest and guaranteed by the Irish government.
Both savings interest and income from renting property are taxable.
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