Monday, 21 August 2017

BUY-TO-LET DEAL OF THE WEEK: 2 bedroom apartment in Chichester, £280,000, 4.7% yield

John Rennie Road, 2 bed apartment, Chichester
2 bedroom apartment in Chichester
Listed for sale on 09/08/17 @ £280,000
Rent = £1,100pcm
Last sold for £250,000 in November 2012 (+12% in 5 years)
Yield = 4.7%
There is a case to put forward that city centre apartments will always be in strong demand from tenants and thus are a good buy-to-let investment. Throw a canal side location into the mix, along with the knowledge that Chichester's 'Southern Gateway' in the immediate proximity is to be re-developed and potentially you have a winner of a property in the form of this two bedroom apartment on Chichester's canal.

I remember when these apartments were being finished a little under five years ago. The development has stood the test of time so far, in that they provide good sized accommodation along with a smart finish. The fact this apartment is now for sale at £280,000; just £30,000 more than when it was bought new in 2012 is worth noting. That's a 12% increase in the same timeframe that has seen values across Chichester rise 21%, which means you're almost turning back the hands of time with the purchase of this property. It also demonstrates why I often say new-build properties aren't necessarily the best investment as they come at a premium price to cover the developer's profits.

Getting a well-proportioned and well-equipped two bedroom apartment in the heart of Chichester's canal basin at a 'second-hand' price could make for a shrewd investment though. Apartments in the block vary in size and shape, so a proper inspection would be required to put an accurate rental valuation on the apartment. Some two beds in the block have let for £995pcm, whilst others have reached £1,250pcm+. Based on the advert (complete with no floorplan, over exposed wonky photos with some of the curtains shut and numerous typos) I've estimated a rental value of £1,100pcm, which would provide a decent 4.7% rental return based on that £280,000 asking price. Bear in mind though that this modern apartment is likely to come with fairly hefty service charges, so that's definitely something to check out.

It is on the market with Cubitt & West  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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