One week has passed since the general election, so there’s now (a
little) more certainty as to the future for housing policy nationally and how
that may affect us here in Chichester. Many property investors have been
waiting it out since the election was called but will now be actively hunting for
more buy-to-let properties.
For many, as property is tangible and has an excellent track record, it
is the preferable choice for safekeeping their money, whilst improving their
returns compared to keeping money in the bank.
It therefore irritates me that a large number of potential landlords,
particularly those new to property investment, may be wandering into the hands
of misleading salespeople. They could fall victim to those offering illustrious
schemes that promise instant riches. Or it could be a humble estate agent who
just happens to have the ‘perfect’ buy-to-let in their shop window (and yet
owns no rental properties themselves).
Many estate agents will of course advise you that the property on their
books is more expensive than the exact same one around the corner on with ‘that
other agent’. They won’t pressure you into using their solicitor, their
mortgage advisor and indeed their letting service, if some or all of those
things aren’t actually in your best interests. They certainly wouldn’t bother
showing you that property they’ve been unable to sell because it’s overpriced. Would
they?
A couple of first-time landlords came to me wondering if the £250,000
two-bed apartment in Chichester they were recommended by an estate agent really
was as great as they’d been told. I informed them that it would rent for around
£875pcm, much the same as a two bed house on Arundel Park……which you can buy
for £225,000 and avoid the leasehold charges.
Another landlord I spoke to was buying a three bedroom house in his
village as he was told (by the local agent) it’s good to buy near to where you
live. I certainly agree with the sentiment…but not if that means buying in a
village where there’s only one rental property on the market! It doesn’t
exactly show a strong demand from tenants does it?
Here are a few quick tips when investing in property:
· Check nearby comparable properties for asking prices, sold prices and
rents.
· Use this as a guide to the achievable
rent. Use this to calculate and compare yields (annual rent divided by purchase
price).
· Consider the additional costs of leasehold property i.e. ground rent and
service charges.
· Check rental demand by seeing how many properties are ‘to let’ nearby
and which have been ‘let agreed’.
If you’ve seen a property which you’re interested in buying as a
buy-to-let please e-mail me the details to clive@crjlettings.co.uk and I’ll
give you my honest and impartial opinion on it. You can also contact me to
receive my handpicked ‘Chichester buy-to-let deal of the week’.
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.
Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:
Follow The Buy-To-Let Property Investment Market in Chichester
Chichester Property Market LinkedIn Page for Clive Janes
CRJ Letting Agents Chichester Facebook Page
CRJ Letting Agents Chichester Twitter Page
Chichester Investment Property Management Specialist CRJ Letting Agents Website
Chichester Property Market LinkedIn Page for Clive Janes
CRJ Letting Agents Chichester Facebook Page
CRJ Letting Agents Chichester Twitter Page
Chichester Investment Property Management Specialist CRJ Letting Agents Website
c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP
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