This two bedroom apartment on Graylingwell Park in Chichester has flagged up as new to the market this week. This isn't altogether true, as it was listed with a different estate agent since February; originally at £285,000, prior to dropping the asking price several times to now be listed with a second estate agent at £240,000.
There are several similar apartments for sale on the development and this is the cheapest of them all, which is a good place to start. The fact it has dropped in price by 16% is a good sign that it offers reasonable value (even though that original asking price was almost certainly an overvaluation to win the original instruction).
Whilst that period of overpricing may have proven a waste of time to the vendor, it may now offer an opportunity to an astute investor. The seller has made it clear in the marketing blurb from the other agent that they need to move and have found a property they wish to buy. Having dropped the price relatively drastically in a short period of time they've either wised up to the fact it was originally overpriced or are pretty keen to sell, which gives a potential buyer the opportunity to do so at a good price.
It is a beautiful apartment in a lovely re-purposed block in a popular development in Chichester. The all-in-one lounge/kitchen setup doesn't make it the largest of homes, but it's comparable with other nearby flats and so shouldn't be a hindrance in finding tenants at around £950pcm. I have recently found tenants for a smaller one bedroom apartment nearby at £850pcm and last year a larger two bedroom apartment at £1,000pcm.
A rental figure of £950pcm would provide a gross rental yield of 4.8%. Be sure to double check the service charges that come with the property though as new-builds (this flat is only a few years old) are renowned for being expensive at the best of times but when taking an old building and re-purposing it such as this, I imagine the maintenance costs may be higher than normal. The advert suggests a figure of £1,440 per year for service charges and ground rent - instantly dropping the attractive 4.8% yield to a less favourable 4.2%.
It is on the market with Sims Williams and full details can be found on Rightmove via the following link:
http://www.rightmove.co.uk/property-for-sale/property-59507938.html
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