Buy-to-let deal of the week: 3 bed house in Chichester, £275,000, 4.6% yield

In keeping with last week's article, I thought I'd purposely select a property this week that should benefit from the stamp duty changes.

This 3 bed detached house on Arundel Park has been on the market since September. Originally priced at £279.950, it was reduced to £275,000 in mid-November. I know from experience (and chatting to the agent) that at this price point any murmurs of an offer were for £250,000.....so the buyer would not have to pay the additional stamp duty (purchase price of £250,000 = £2,500 stamp duty versus purchase price of £275,000 = £8,250).

With the stamp duty reforms, a purchase price of £275,000 will now 'only' cost £3,750 in stamp duty, a considerable saving of £4,500 along with the avoidance of a psychological 'loss' in paying just over the old stamp duty threshold.

The property itself is a good size, complete with driveway, garage and rear garden. It is in a nice part of the popular Arundel Park estate and should rent well, most likely to a young family. It is currently owned by a landlord (the tenants are moving out) and as well as being listed for sale, is also listed 'to let' at £1,050pcm, which would give you a 4.6% yield based on paying the full asking price.

It is in a reasonable condition inside, although I think the kitchen and bathroom could do with a spruce up, if not a replacement in the near future. The essentials are present though, including full double glazing and gas central heating.

The current owner purchased the property in June 2008 for £245,000, which would suggest the current asking price is a realistic one based on both this figure and the recent sales in the local area.

Full details can be found on Rightmove via the following link:
www.rightmove.co.uk/property-for-sale/property-46395673.html

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