We’re delighted to present an attractive investment opportunity in one of the UK’s most beautiful holiday destinations – Torquay. This modern art deco property comprises an entire block of 9 two-bedroom flats, was secured at a significant discount, and is offered with gearing for enhanced returns. It’s also a mere 350m from the sea.

Torquay is in Devon and situated between Plymouth and Exeter. More than a beautiful beach destination, Savills predict strong growth over the next five years for the South-West of England – of which Torquay is a part.

The case is underpinned by three main factors:

• • The investment comprises all 9 flats in this property and is geared at 50% loan-to-value (LTV) of the purchase price. Gearing gives enhanced exposure to property price movements, and the potential for amplified returns; though investors must note amplified negative returns if prices fall. If you’d like to find out more about the effects of gearing, click here for our blog post on geared properties.

• • There is a significant discount reflected in the purchase price of this block, which we have secured by purchasing the entire block for £1,225,000 – versus its RICS certified valuation of £1,350,000. This 9.2% of capital growth is amplified to 16.4% owing to the effects of gearing.

• • The property is in Torquay, Devon in the South-West of England. Savills, in their forecasts for house price growth by region, have this as a region of the country they expect to appreciate significantly in value over the next 5 years – a predicted 19.9% (2016: 6%, 2017: 3.5%, 2018: 3.5%, 2019: 3%, 2020: 2.5%).

Our investment comprises an unbroken block of 9 two-bedroom flats, as well as the Freehold interest for the building. We have achieved this off-market sale through our specialist networks. By purchasing the entire building in a single transaction, we were able to offer the vendor speed, certainty, and the ability to avoid agent’s fees, compared to selling the individual units on the open market.

We’re paying £1,225,000 for the entire block, versus an RICS certified valuation of £1,350,000. Owing to the effects of gearing, this 9.2% of capital gain is amplified to 16.4% if the property valuation remains unchanged over the next 3 months, at which point a valuation update is given by an RICS Chartered Surveyor. You can read more about our revaluation process in the “‘Resale’ opportunities” section of this page.

With the support of extensive industry research, combined with the knowledge of our experienced property team, we believe investments in this region to be an attractive opportunity – and a chance to diversify.

The well-regarded research team at Savills have the South-West as a region that they expect to perform well between 2016-2020, with a 5-year capital growth forecast of 19.9% (2016: 6%, 2017: 3.5%, 2018: 3.5%, 2019: 3%, 2020: 2.5%).

Torquay has seen investment from both the government and from private firms who are expanding their presence. Examples include firms like Gooch & Housego – who design, manufacture and supply fibre optic solutions used across the aerospace, defence, industrial, life science and scientific research sectors. Gooch & Housego will receive an award of £1.2 million from the Government towards their planned £18 million expansion project providing an employment boost to the region.

Our property lies 18 miles south of the county town of Exeter, 28 miles north-east of Plymouth, and north of Torbay. It’s also well connected via two railway stations. The Torbay area has gained the reputation as the English Riviera due to the mild climate and sub-tropical trees and gardens. The 22 miles of the Riviera coastline sport some 19 beaches and coves all within an easy drive of Torquay. The lively harbour and international marina, the promenade and seafront gardens and the sandy beaches make it an attractive place to live, as well as to holiday. Our property is just a stone’s throw away from the beach – a rare luxury that only adds to the rental prospects of this investment opportunity.