This week's buy-to-let deal of the week isn't likely to be everybody's cup of tea. It's something of an 'ugly duckling' from the outside as well as being in Charles Avenue, which has a reputation for being one of the less affluent parts of Chichester.
Nevertheless, from a numbers point of view this two bedroom apartment looks to tick the right boxes for those who take a less emotive view on their buy-to-lets. First listed a couple of months ago it hasn't dropped from its initial asking price of £175,000, which is in-line with what other two bedroom apartments nearby have sold for recently.
It has a modern kitchen and a clean, neutral, décor throughout the good sized apartment. More importantly for those simply looking at it from an investment point of view is that it has a tenant in situ paying £775pcm.
Assuming the tenant is paying the rent and looking after the property (the photos were presumably taken before it was let, hence it's empty) it would mean a 5.3% gross yield based on paying the full asking price of £175,000. It would also mean you would earn an income as soon as you complete on the property, rather than having an initial void period as you wait to find you first tenant to move-in.
Longer term readers of my Chichester Property News updates will know there's a few downsides to a property investment such as this. The first is the fact it is a flat and therefore that gross yield will be more heavily impacted than a house due to service charges and ground rent. Secondly, less affluent areas are likely to increase in value less than their 'posher' counterparts. Therefore, you will achieve a better rental return at the detriment to future capital growth. Finally, having tenants in situ means you didn't choose them. If they're paying the rent and looking after the property this may not be an issue, but I'd always like to have the choice of who is in my rental property as well as ensuring all the paperwork is my own and in order.
If you're looking for an entry level rental investment property in Chichester though, this could be a decent pick being the cheapest two bed apartment on the market.
It is on the market with King & Chasemore and full details can be found on Rightmove via the following link:
http://www.rightmove.co.uk/property-for-sale/property-65954504.html
_______________________________
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.
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
__________________________________
| 
No comments:
Post a Comment