Monday, 8 June 2015

BUY-TO-LET DEAL OF THE WEEK: '4' bed house in Chichester, £229,950, 6.6% or 5% yield - you decide

This is the cheapest 3 bedroom house available to buy in Chichester. This is a good starting point for a decent buy-to-let, but the kicker is then to choose what you wish to do with the property.

It is currently set-up as a 4 bedroom student house earning £1,386pcm. Over a year that would provide an excellent 7.2% yield. Except, student contracts only normally last 11 months, giving you a lesser, but still good, yield of 6.6% Except you then have a month's void in the Summer when you have to foot the bills. And the annual churn of student tenants. And the additional wear and tear.

So, what's the alternative?

It is the cheapest 3 bedroom house in Chichester....so rent it as a 3 bedroom house in Chichester.

It's already been reduced in price by £10,000, which suggests the owner wants to sell. Even based on paying the full asking price, if it were rented to a family it could achieve £950pcm, resulting in a yield of 5%. You wouldn't have the annual void and churn of tenants and the additional wear and tear it brings. Plus, you wouldn't need to furnish the property to current regulations like you do with a student property.

You could also look to invest in a spruce up including a new kitchen, bringing the property closer to it's fully refurbished valuation of £240,000-£250,000.

So, would you rather have a student property returning 6.6% or the simpler to manage longer-term family tenants achieving 5%. Either way, to own a 3 bed freehold house in Chichester for under £230,000 is pretty good going.
Full details can be found on Rightmove via the following link:
http://www.rightmove.co.uk/property-for-sale/property-47648056.html

chichester buy to let front

chichester buy to let kitchen

chichester buy to let lounge

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If you are looking for an agent that is well-establishedprofessional 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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