Monday 24 July 2017

BUY-TO-LET DEAL OF THE WEEK: 2 bedroom house in Chichester, £275,000, 4.4% yield

Woodlands Lane, Chichester, 2 bed house
2 bedroom house in Chichester
Listed for sale on 02/07/17 @ £300,000
Now = £275,000
Rent = £1,000pcm
Last sold for £142,500 in Aug 2000 (+93% in 17 years)
Yield = 4.4%
This two bedroom house is within walking distance of Chichester's city centre. This in itself should make it a popular home amongst tenants. Currently though it needs some cosmetic refurbishment throughout; I'd suggest full re-decoration and re-carpeting, along with a new kitchen and possibly a new bathroom (it might make do with re-tiling and putting a full-height shower over the bath).

This would make it a highly desirable two double bedroom home close to the city centre and, importantly for a house of this type, near the most prestigious primary school in Chichester - Jessie Younghusband School. I wrote an article previously about how school's can affect house prices (How have Chichester's schools affected house prices?) and if you consider the type of tenants a two bedroom house might attract (young professional couple) it is clear that, in time, they can grow into the home with a child who would be on the doorstep of the top primary school in Chichester.

This should mean you'd be able to find tenants relatively quickly for the house and I believe if chosen carefully you could find long-term tenants who are likely to stay in the house and create a home for themselves. On the basis that the house is modernised I believe it would achieve £1,000 per month in rent (effectively £950pcm for the house and £50pcm for the garage). Based on paying the full asking price of £275,000, which has just been dropped by £25,000 within only a few weeks of marketing, that would represent a 4.4% yield.

Considering there's a two bedroom flat in the same road that is both smaller and lacks a garage, up for sale at £240,000, I believe this house represents decent value for money. The fact many first-time buyers are likely to be put off by the added expense of the additional works required to make it 'nice' inside could give a shrewd investor an opportunity to bag a bargain.

It is on the market with Kenton Budd and full details can be found on Rightmove via the following link:

If you are looking for an agent that is well-establishedprofessional 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 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:

c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP


Rental valuation

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