This two bedroom apartment in Chichester is an interesting property to look at as this week's buy-to-let deal.
It's just been reduced by £20,000 to an asking price of £200,000 (a drop of 9% having only been on the market a few weeks). The marketing isn't great in that there's not a full array of internal shots, so whilst it says the kitchen is modern, we can't see it from the advert. Let's assume it's all in good condition though, in which case I believe its close proximity to Chichester's city centre and St. Richard's Hospital should mean it would rent for around £850pcm; providing a yield of 5.1%.
That in itself means it should be one to look at for any investor considering an "entry-level" investment in Chichester. With its own private entrance, garden and parking, it also overcomes many of the negatives in regards to living in a flat rather than a house. Importantly for the landlord, it also foregoes a lease with hefty service charges built in. Instead it has a new 125 year lease with a £100pa ground rent and simply a 50/50 share of maintenance costs with the ground floor flat.
A couple of things that are interesting about this particular flat is that it used to be a two bedroom house, very similar to this one marketed (and now sold) for £325,000. It is common for this row of properties to have done exactly what has been here - a two bedroom house becoming two separate flats. It is particularly easy to achieve this as, like this one, the loft has been converted into a bedroom, creating a two bedroom apartment up top (over two floors) and a one bedroom apartment on the ground floor.
What's also interesting about the flat is the future development that could become of it. This is where you'd need to own the freehold to implement the plan, but very obviously from the details there is a plot of land next to the building currently used for parking, which could easily accommodate another house. Alternatively, with permission from the freeholder, more could be made of the current 769 square feet, with a little bit of a rejig. It could quite easily house three en-suite bedrooms, with a shared lounge/kitchen. That would turbo charge the rent to around £1,350pcm (£450pcm for each room) based on a room-by-room approach to the letting. Normally you'd cover the utility costs as part of this, but it could attract students, hospital workers and those wishing to be close to the city centre, whilst providing a very good rental return indeed.
It is on the market with Henry Adams and full details can be found on Rightmove via the following link:
http://www.rightmove.co.uk/property-for-sale/property-67625114.html
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