Monday 3 August 2015

BUY-TO-LET DEAL OF THE WEEK: 1 bed flat in Chichester, £125,000, 6.5% yield

This one bed flat on Arundel Park in Chichester might not win any beauty pageants but it will provide a decent yield. A similar property nearby recently let for £675pcm, which would provide a 6.5% yield based on paying the asking price (£125,000).

That pricetag also makes it the only standard property in Chichester currently for sale that you won't have to pay any Stamp Duty when purchasing! 

These blocks tend to come with reasonably low maintenance charges and ground rent, so the yield shouldn't be hit too much like it would be on many newer flats. One thing to check would be how many years left there are on the lease - some of these flats are starting to run low, some are even unmortgageable as a result, hence their lower valuations.

On the flip side of the yield calculation is capital growth. This is where 'cheaper' investment properties such as these fall down slightly. They are unlikely to increase in value as much as a 'nicer' freehold house and will tend to attract the less secure tenants in the meantime.

This is proven on this flat, which last sold for £133,000 in January 2007, showing that it actually lost 6% of its value in eight and a half years! Before that, it was sold for £95,000 in May 2003, showing a slightly healthier, albeit unimpressive, 31% increase in twelve years.

But, for those who ask me what they can buy in Chichester on a shoe-string budget, here's the answer.
Full details can be found on Rightmove via the following link:
http://www.rightmove.co.uk/property-for-sale/property-50556910.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:

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