Monday, 2 February 2015

Buy-to-let deal of the week: 1 bed flat in Chichester, £109,950, 6.9% yield


Last week I showed you the cheapest 3 bed house in Chichester, this week it's the cheapest property in Chichester!

This 1 bed flat is a pure cash-producing asset. Not likely to acquire spectacular capital growth, it should be bought for it's positive rental return. Having only 66 years left on it's lease would likely make it unmortgageable, depressing it's value below what it would otherwise be. This does however offer you the opportunity to extend the lease and whilst this would come at a substantial cost, may well add value overall to the property.

In the meantime it has a sitting tenant (how reliable is this tenant you get lumbered with as part of the purchase???) paying £575pcm. Plus, as I've advocated in the past, the landlord has taken advantage of renting the property's garage separately, for £60pcm. This equates to a total rent of £635pcm, which is an excellent 6.9% yield based on paying the full asking price of £109,950.

Whilst I've made my dislike of flats relatively plain in the past, this particular unit comes with very reasonable ground rent of £20pa and service charges of £200pa, which only reduces the yield from 6.9% to 6.7%.

Full details can be found on Rightmove via the following link:


chichester buy-to-let flat example

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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:


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

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