Can you still make money from property in Chichester?

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.

 (This article was featured in the Chichester Observer's property section on 9th March 2017) 

Clive Janes, CRJ Lettings.

www.crjlettings.co.uk

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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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