Empty Warehouse Opposite Flat being developed - will our property increase in value??

actresskat

Hi,

We own a flat in the city centre and the empty warehouse opposite is being developed into 454 luxury student rooms with a business centre, supermarket and restaurant/cafe on the ground floor.

Our tenants are thinking about moving on because of the building works...my question is...is it better to sell our property before they get into developing this site opposite or will it increase our property value and we should wait until it's been developed??

Also, are their any tips from landlords of renting a property when building works are taking place opposite??

Thanks for the help!! :j

GDB2222

how can anyone answer your questions without more information? There are obviously pluses and minuses. If the old warehouse was an eyesore, having it developed will obviously improve values. On the other hand, having 454 students living opposite you is not a bonus, definitely not a bonus!

it seems very likely that any prospective buyers will know about the new building work, either because they find out the same way you did or because they check planning applications in the vicinity, which any sensible buyer will do.

Fairly obviously, tenants will be put off by the building work, and you will need to reduce the rent accordingly.

BitterAndTwisted

Building works aren't particularly noisy or disruptive. It's the demolition which is and that should only be for a short time. Where I live there were huge bonded warehouses on the opposite side of the river, so not a particularly attractive view although pretty quiet. They've since demolished them and built hundreds of flats and houses. We now have a much nicer view and it's had absolutely no impact on rents or property-values. I'd say the additional facilities locally could be a big plus to potential tenants in the future.

Brallaqueen

You're flat will become more attractive to students, but if that is not your target market then you will struggle. There is normally quite a high anti-student sentiment in the private sector due to the reputation for noise, drunken antics and general stydenty-type living.

A new Halls of Residence is being built in my home town and the civic outpouring of dissent from the egneral public is a sight to behold.

actresskat

Just for a bit more detail, the planned student accommodation will be at the 'luxury' end with flatscreen tvs (with optional sky etc.) and fully equipped fitness suite - so it's not exactly going to be your typical student accommodation. They are planning to have a business suite, mid-range restaurant on the ground level along with a supermarket which may be handy addition on the amenities side of things.

Right now the building has broken windows and pigeons as occupants flying in and out - the warehouse has been derelict and empty for years and is not currently an attractive view from our penthouse property (but it is, at least, empty save the pigeons!)

Bossworld

actresskat wrote: »

Just for a bit more detail, the planned student accommodation will be at the 'luxury' end with flatscreen tvs (with optional sky etc.) and fully equipped fitness suite - so it's not exactly going to be your typical student accommodation. They are planning to have a business suite, mid-range restaurant on the ground level along with a supermarket which may be handy addition on the amenities side of things.

Right now the building has broken windows and pigeons as occupants flying in and out - the warehouse has been derelict and empty for years and is not currently an attractive view from our penthouse property (but it is, at least, empty save the pigeons!)

The more well-to-do students can be the worst - they've usually never left their parent's house before so they've even less respect for other people's stuff.

Sounds similar to the 'Victoria' hall they've built in Newcastle city centre.

abankerbutnotafatcat

My take on this is that a well kept, occupied property with community facilities (supermarket and restaurant) is a lot more desirable a neighbour than an empty, derelict warehouse students or no students.

At the back of Clapham Junction they've turned what was built as a council estate (although it became all private) into a student village soley for (i think LSE but certainly a prestigous college) post graduates. This could be similar for all we know.

OP: personally I think you should view this development's impact on your investment as neutral until you have more information and shouldn't make any hasty decisions. City centre dwellers (your potential tenants) tend to be more open minded as to their fellow citizens than average as they have opted to live so close to them in the high density, busy hub of things.

GDB2222

Bossworld wrote: »

The more well-to-do students can be the worst - they've usually never left their parent's house before so they've even less respect for other people's stuff.

Absolutely! http://en.wikipedia.org/wiki/Bullingdon_Club :D:D

Wobblydeb

Who are your typical tenants? What is the population type in your block and those around?

actresskat

Wobblydeb wrote: »

Who are your typical tenants? What is the population type in your block and those around?

Hi, our tenants are 30-40s professional couple. Most in the apartment are couples (no families, perhaps a few students on lower floors) but all professionals.

GDB2222

the obvious thing to do is to go and hang around outside some student accommodation during term time, to see what goes on. Then you can make your own decision. You are kidding yourself if you believe that this will have "a better class of student".