Investor Case Studies
Student HMO accommodation is a lucrative investment for any property investor. A Polish investor Mr Stepian approached Etimon in 2012 to purchase a number of HMO properties for rental. With a number of these properties already within their portfolio, Etimon has a wealth of expertise in the HMO arena. Etimon sourced 3 flats in Glasgow City Centre, successfully converted them into HMO licensed properties, sourced tenants and rented these HMO properties. The properties are now all occupied with student and professional tenants.
Mr & Mrs McPherson from the Isle of Skye had 3 kids who were considering university in Glasgow when they finished their exams. On weighing up the price of student halls and student renting, the McPherson family decided it would be a better investment to purchase a property in Glasgow for the duration of their kids’ education. They bought a large 4 bedroom flat in Glasgow’s West-end and engaged with Etimon to help restructure the flat to turn it into a 6 bedroom flat with a HMO licence, by making an internal dining kitchen, turning the old kitchen into a bedroom and converting one large bedroom into 2 double bedrooms. At the same time, they renovated the bathroom and purchased good quality, sturdy furniture. The McPhersons used 3 of the bedrooms for their children and through Etimon found tenants to rent the other 3 rooms to pay a substantial element of the mortgage. Through Etimon, the McPherson’s sold the property after 9 years and divided the money amongst their children to help them get on the property ladder themselves.
Mr Chen, an investor from Singapore approached Etimon to invest £300k in 2 properties in Glasgow in 2015. Etimon sourced one 2 bedroom flat in Glasgow’s West-end which required some renovation and a new build 1 bedroom flat in an up-and-coming area of the City. The renovation project turned the 2 bedroom flat into a 3 bedroom, significantly increasing the value of the flat overnight and improving the rental yield on the property. Both properties were rented out for £500 per month. The 3 bedroom flat’s rent has now increased to £750 per month and the one bedroom rents out at £600 per month. Mr Chen is now looking to sell the one bedroom flat which has an estimated increased value of 20% over the 7 years. Mr Chen is keeping the 2 bedroom flat and is looking to source another property through Etimon in the City Centre.