BUY-TO-LET DEAL OF THE WEEK: 2 bed house in Chichester, £215,000, 4.5% yield
Summary: 2 bed house in Chichester Listed for sale on 29/07/16 @ £215,000 Rent = £800pcm Yield = 4.5% Last sold for £176,000 in August 2006 (+22% in 10 years)
Here's another two-bed house in Chichester, which is particularly keenly priced. In fact, it's the cheapest freehold property in the whole of Chichester. And yet it's in good condition, is of a modern build and already has the potentially costly to install double glazing and gas central heating.
It also comes with a sitting tenant, currently paying £800pcm. This means it would be earning an income from day 1 (assuming the tenants are paying their rent - get evidence of this!) and providing a return of 4.5% based on paying the full asking price. This isn't a bad return, but the property should easily be achieving £850pcm, which would result in a more representative return from the property of 4.7%.
Not only does it offer decent value compared to other properties in the area, but it has 'only' increased 22% since it was last sold in August 2006 for £176,000. This is below the average 34.7% increase witnessed across Chichester; so you'll have to decide if that's because this house doesn't increase as much as the average property in Chichester, or because it's priced lower than it should be.
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.
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