BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Chichester, £249,950, 4.7% yield

Summary:
3 bed house in Chichester
Listed for sale on 22/06/18 @ £249,950
Rent = £975pcm
Yield = 4.7%

This three-bed house in Chichester is an interesting buy-to-let pick for a few reasons. In principle, being both the cheapest three-bedroom house on the market in Chichester and the cheapest semi-detached house on the market in Chichester makes it worth a look. It's also in a decent location for rental purposes, being so close to St Richards Hospital.

It does however need some refurbishment, and this is where it gets interesting. Firstly, it is rated as an 'F' on the EPC scale , which means in it's current state you cannot legally let it! So there's some upgrades to be done on that front. Then there's the kitchen and bathroom, both of which need replacing.

And that raises the question - is it now worth moving the (currently downstairs) bathroom upstairs, at the expense of a bedroom? I had this discussion with a landlord this week and between us we agreed we'd rather have a 'nice' two-double-bedroom house with an upstairs bathroom, a large downstairs and good sized kitchen than a 'not so nice' three-bed house with a small kitchen and downstairs bathroom. But, that wouldn't be everyone's response - logically a three bedroom house will be more valuable than a two-bedroom house. What I would say however is that in the future, as the dreaded downstairs bathroom becomes less-and-less desirable, the job in finding tenants that accept it will become tougher and tougher.

I also think you could rent it at £975pcm as a large refurbished two-bed home and yet the premium of keeping it as a three-bed house is likely only to be an extra £20pcm (£995pcm) because of the inherent issues it would have. This would of course all change if you were thinking of renting it to students or sharers, like quite a few of the houses have been on the street, where maximising bedrooms can be the key to it's financial success.

What do you think - is it better to keep it as a compromised three-bed or convert it to a polished two-bed?

The property is on the market with Sims Williams and full details can be found on Rightmove via the following link:
https://www.rightmove.co.uk/property-for-sale/property-55001544.html

---

If you are looking for an agent that is well-established, professional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.

E-mail me on clive@crjlettings.co.uk or call 01243 624 599.

Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:

Follow The Buy-To-Let Property Investment Market in Chichester

Chichester Property Market LinkedIn Page for Clive Janes

CRJ Letting Agents Chichester Facebook Page

CRJ Letting Agents Chichester Twitter Page

Chichester Investment Property Management Specialist CRJ Letting Agents Website

c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP

---

More for sale in Chichester and at a higher price - so what’s the problem?

There are 347 properties for sale in Chichester as I type, compared to 329 a year ago. What’s more, the average asking price (£350,000) is also up compared to 12 months ago (£325,000). Everything looks rosy in Chichester’s property market then…but is there another story to be told?

Well yes, because let’s remember you don’t put your property on the market simply for fun, but to sell it! And that is where the process is falling down a little - with just 216 sold boards in the ground in Chichester compared to 243 a year ago. That may not sound much of a difference (although it’s actually more than 10% down) but remember it’s also coinciding with there being more property on the market. All things being equal you’d expect there to be more sold properties as a result too, but that isn’t the case. In fact, whereas a year ago 42.5% of the properties on the market were sold, that figure has now dropped to 38.4%.

This has been the trend in Chichester’s property market over the last few years; whereby there are more properties on the market but proportionally fewer people actually buying. Data from home.co.uk also shows the average time a property is spending on the market is up to 97 days, compared to 86 days this time last year.

It’s unusual therefore that we’ve seen asking prices continue to increase in the face of this. I suspect a couple of things are happening here - people are clinging to past performance and they’re not adapting to the tougher conditions. Estate agents may be fuelling this; afterall, it’s an unpopular agent who suggests a lower than expected asking price and, more often than not, is not the estate agent who goes on to get the listing. If we look at the sold data in Chichester instead, we’re seeing prices are actually only 2.5% higher than they were a year ago.

People will point to Brexit causing uncertainty and fear, which is constraining the market. Stamp duty changes may also be stopping people from taking the plunge, particularly if they aren’t replacing their main residence (and thus being caught by the additional 3% tax on the purchase price). Whatever the reason, you would expect that with more properties available and fewer being sold it’s only a matter of time before prices start to conform to the principles of supply and demand i.e. they begin to level off.

To follow the latest developments in Chichester’s property market, be sure to subscribe to the free Chichester Property News weekly e-newsletter by visiting www.tinyurl.com/chipropertynews

---

(This article was featured in the Chichester Observer's property section on November 16, 2018)


Clive Janes, CRJ Lettings

---

If you are looking for an agent that is well established, professional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.

E-mail me on clive@crjlettings.co.uk or call 01243 624 599.

Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:

Follow The Buy-To-Let Property Investment Market in Chichester

Chichester Property Market LinkedIn Page for Clive Janes

CRJ Letting Agents Chichester Facebook Page

CRJ Letting Agents Chichester Twitter Page

Chichester Investment Property Management Specialist CRJ Letting Agents Website

c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP

---

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Chichester, £300,000, 4.4% yield

Summary:

3 bed house in Chichester
Listed for sale on 19/10/18 @ £300,000
Rent = £1,100pcm
Yield = 4.4%
Last sold in 1995 for £70,000 (+329% in 23 years)

There are currently quite a few three-bed houses for sale around this (fairly reasonable for Chichester) £300,000 price point. This could be amongst the best of them due to it's location and size. Popular amongst homeowners and tenants alike due to its close proximity to Chichester's city centre and yet the layout of the street still retains a sense of 'homeliness' along with the properties generous plots, off-road parking and garages.

The fundamentals are there - double glazing (to most doors and windows - something to check), gas central heating and a very nice kitchen. The shower room could do with replacing to a bathroom ideally, so as to appeal to families, and overall a change to some carpets and décor will help freshen it up. With these small improvements there'll be a very nice family home up for grabs. I'd expect it to rent for at least £1,100pcm, which would provide a decent 4.4% yield based on that £300,000 asking price. It might even get a smidge more when you factor in the garage.

It's clear from a few of the photos that it's been in the same ownership for some time. The sales data backs this up - it was last sold in 1995 for the princely sum of £70,000. That means it's more than quadrupled in price since John Major was Prime Minister and Tony Blair was promising that things "could only get better" (read as 'more expensive'!)

The property is on the market with Purplebricks and full details can be found on Rightmove via the following link:
https://www.rightmove.co.uk/property-for-sale/property-68046931.html

---

If you are looking for an agent that is well-established, professional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.

E-mail me on clive@crjlettings.co.uk or call 01243 624 599.

Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:

Follow The Buy-To-Let Property Investment Market in Chichester

Chichester Property Market LinkedIn Page for Clive Janes

CRJ Letting Agents Chichester Facebook Page

CRJ Letting Agents Chichester Twitter Page

Chichester Investment Property Management Specialist CRJ Letting Agents Website

c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP

---

Preparing your property for Winter

The following tips can be applied all year round but they’re particularly relevant at this time of year as it gets colder, darker and wetter outside.

1) Familiarise yourself with your property

Ensure you know where the fusebox, gas safety valve and water stop valve are and how they operate, in case of an emergency (I provide a house guide to my tenants with this information and also show them when they move in).

2) Keep on top of basic maintenance

Check roofs and gutters for slipped or damaged tiles and for any leaks. Check overflows and pipework for any leaks as well as damp smells or flaking paint, which may indicate a hidden problem.

Bleed the radiators and check the pressure of the boiler to see if it needs topping up.

3) Avoid condensation

Build-up of condensation can be more prevalent in winter as more heating is used, clothes are dried inside and there is a tendency to want all the windows shut.

All this moisture in the property needs to go somewhere and will invariably attach itself to cold surfaces (exterior walls/window surrounds) and create unsightly condensation/mould patches.

Keep windows open throughout the property, particularly in bathrooms and kitchens and especially during and after showering/bathing and cooking. Use extractor fans where fitted and wipe down any wet surfaces after using the shower/bath.

4) Don’t turn the heating off completely

This is very important to prevent the freezing of the water system and expensive burst pipes. It’ll also help in the fight against condensation, which thrives on a changing temperature.

The easiest solution if you are planning to be away from the property is to leave the boiler on and set the thermostat to a low temperature i.e. 12°.

5) Fire safety

Do not overload electrical sockets with appliances and Christmas lights as this can cause a fire hazard. Avoid using candles, particularly near Christmas trees, decorations and curtains.

Test all smoke and carbon monoxide alarms to ensure they are working correctly.

I believe prevention is better than cure, which is why I pre-arm my tenants with a 'winter maintenance guide' at the beginning of their tenancy and re-issue it as winter approaches.

You can download this short guide, free of charge, from www.crjlettings.co.uk/winter-advice

---

(This article was featured in the Chichester Observer's property section on November 08, 2018)


Clive Janes, CRJ Lettings

---

If you are looking for an agent that is well established, professional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.

E-mail me on clive@crjlettings.co.uk or call 01243 624 599.

Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:

Follow The Buy-To-Let Property Investment Market in Chichester

Chichester Property Market LinkedIn Page for Clive Janes

CRJ Letting Agents Chichester Facebook Page

CRJ Letting Agents Chichester Twitter Page

Chichester Investment Property Management Specialist CRJ Letting Agents Website

c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP

---

BUY-TO-LET DEAL OF THE WEEK: 6 bed house in Chichester, £300,000, 9.5% yield

Summary: 6 bed house in Chichester Listed for sale on 31/10/18 @ £300,000 Rent = £2,375pcm Yield = 9.5%

New to the market this week is what sounds like a behemoth of a property - six bedrooms for £300,000, providing a yield of 9.5%!

Of course you can tell from the photo it isn't a traditional six bedroom house, but rather a three bedroom house that has had some tinkering and extending to create six bedrooms on a HMO basis.

This strategy isn't for everyone, but as this property shows the rental income can be high. Of course that's if all the rooms are let and such properties will traditionally be let as 'bills included' i.e. the landlord pays the council tax, water, gas, electricity, tv licence, broadband etc.

Even so, a 9.5% gross yield on a £300,000 property suggests a rental income of £2,375pcm, which is around £400pcm per room, which stacks up. It's not the nicest HMO I've seen; the kitchen is tired and the six bedrooms share three toilets and two showers, so there is a chance this could be left behind as more and more purpose-built shared accommodation (complete with en-suites) get built, particularly for the student market.

Nevertheless, £300,000 isn't much more than the 'bricks and mortar' value of the property so it's a decent risk and property regardless of use. It is still a large (circa 1,100 square feet) three or four bedroom house in it's traditional 'bedrooms upstairs, living space downstairs' configuration. It's location near to St Richards Hospital should make it popular with tenants, regardless if it's aimed at sharers or a family let.

I do wonder if it's a coincidence that this house has come up for sale just after the new HMO legislation has come into force. As part of this, if a house is shared by five or more people it needs a licence (costing around £1,000 every five years). Currently there's only four of the six rooms rented...is this because it currently doesn't have a licence i.e. the landlord is purposely below the five occupants but marketing it in it's former glory? To get a licence are there improvements that will need to be made? That's definitely something to check if you're planning to keep it as a HMO. If you are there's scope to improve certain elements to keep it competitive as newer shared properties come to market, whilst potentially increasing the already decent income it achieves further.

The property is on the market with Nexa Properties and full details can be found on Rightmove via the following link:
https://www.rightmove.co.uk/property-for-sale/property-57679479.html

---

If you are looking for an agent that is well-established, professional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.

E-mail me on clive@crjlettings.co.uk or call 01243 624 599.

Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:

Follow The Buy-To-Let Property Investment Market in Chichester

Chichester Property Market LinkedIn Page for Clive Janes

CRJ Letting Agents Chichester Facebook Page

CRJ Letting Agents Chichester Twitter Page

Chichester Investment Property Management Specialist CRJ Letting Agents Website

c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP

---

Community Focus: Draper's Yard

Draper's Yard is a collective of independent and artisan retailers based in the Hornet, next to fabric and haberdashery emporium Clothkits.  There are 20 small local businesses set around a quirky courtyard, ranging from children’s clothing & toys to hair & beauty services and jewelry.

The best thing about supporting small local businesses is the bespoke product and personal service that is on offer.  There is an onsite florist, Katkins Flowers, sewing services from The Little Sewing Hut whilst Leonora Hammond will print you a one-off t-shirt, bag or poster…or even a Christmas Stocking!  The Paint Pot will customise any piece of furniture you like and there is The Chichester Bedroom Centre who will design you the perfect bedroom. Former East Street retailer 'Zest for Taste' are now a resident business, bringing their amazing olive oils & gourmet treats to Draper’s Yard.  It's also Chichester's only ‘pop-up’ destination, with seven table spaces for guest traders.

So, why not grab a coffee from the vintage Citroen van, or sample some tasty treats from the onsite vegan cafe, BBVegan.  As well as some upcoming special festive events, the ever-popular ‘YUM Saturday’ is held every fourth Saturday of the month, featuring a guest chef and a selection of local food producers.

Most shops open on Tuesday to Saturday 10am to 4pm (plus Sundays in December)

Find out more at www.drapers-yard.co.uk

Chichester Property News - Issue 32 - November 2018

Featuring the articles:

"How is 2018 shaping up for Chichester's Property Market?"
"Landlords - what you should check before arranging a viewing"
"Community Focus:  Draper's Yard"
and "Buy-to-let deal of the month: 3 bed house in Chichester, £315,000, 4.4% yield"

Plus, the latest average property values, rents and yields in Chichester.

➕ Plus, the latest average property values, rents and yields in Chichester!