I’ve spoken to a few of Chichester’s landlords since the new year who
feel the property market may be about to flatten out, having seen sensational
gains over the past few decades.
On the other hand there are others I’ve met who are new to buy-to-let
and comparing what else they can do with their money today, rather than seeing
property as expensive now compared to the past.
And as I’ve said many times, property still remains one of the best
places you can put your money based on the facts as we know them today. Those
facts being that yields in Chichester are around 4-5%, which is significantly
higher than the sub 1% available from savings accounts. It’s also higher than
the average yield from the FTSE 100 (3.75%) and the average rate of mortgage
finance.
It’s easy to fall into the trap, as I have done in the past, of thinking
“well I’m not paying £220,000 for that two bed house when next door sold for
just £180,000 three years ago”. We have to remember it’s not three years ago however and base our decisions on the
opportunities available now.
I do still find myself reflecting on “what might have been” though. Most
recently a three bed mid-terrace on Turnbull Road sold for £472,500 - more than
double the £200,000 it cost less than ten years ago back in November 2008.
There’s still some who are making gains from short-term property
transactions, although I’d argue that the stamp duty changes have made this
more difficult, alongside what I see as some ‘doer-uppers’ changing hands for
too much money.
Nonetheless, some shrewd buyers on Roussillon Park made short-term gains
at the end of last year. Having paid £595,000 for a new four bedroom home in
February they re-sold it for £670,000 in November.
Property is not all a one-way bet however, particularly in the
short-term, as one buyer on the nearby Graylingwell Park estate found out.
Having paid £315,500 in March 2016, presumably a change of circumstances meant
they had to settle for £500 less when they sold it in December (and pay all the
associated buying & selling costs).
Even the past decade hasn’t been kind to all property buyers either.
Whilst the average property in Chichester has increased by 34% since 2007, in
November 2016 a studio apartment on the Marchwood estate changed hands for
£105,000 - some £25,000 (19%) less than the previous owners had paid nine years
earlier.
I still think there is value to be found in Chichester’s property market
- you just need to look a little harder and grind down into the fundamentals of
a property a little more than you used to.
As I don’t sell property I’m happy to give some free impartial advice to
would-be investors to help find a property that suits your requirements. If
you’re interested just give me a call.
Clive Janes, CRJ Lettings.
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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.
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