It seems appropriate having written about Parklands in Chichester that this week's buy-to-let deal comes from the same estate in Chichester. The article I wrote about refers to the houses in Parklands, but here we have a two bedroom apartment, priced at a very reasonable £178,000. There aren't too many flats in Parklands and the area leans itself to family houses rather than apartments due to the close proximity to the lauded after Bishop Luffa School.
I believe it should rent for around £800pcm, which is on the cheaper side of the scale in regards to two bedroom apartments in Chichester. That is fitting seeing as that £178,000 asking price makes it the second cheapest two bedroom property for sale in Chichester at the moment and it matches the return from a similarly priced two bedroom apartment for sale. That rental figure would provide an excellent 5.4% rental return. Unfortunately that's the gross figure, with the hefty £1,000 per year service charge eating into it straight away. In fact, when you take that into consideration the yield drops to 4.8%. That's still a very decent return for a rental property in Chichester, but it's not quite as attractive as that headline grabbing figure!
The old adage is property "doubles in value" every ten years. Not so here, or indeed in most parts of the country, as ten years ago represented the beginning of the credit crunch and the 'peak' in the market. The peak soon got overtaken of course, as this property highlights with a 36% gain since it was last sold in 2007 for £131,000.
There is the possibility of changing the layout of the apartment to a three bedroom by moving the kitchen into the lounge. The purpose of this would be to open it up to three sharers and boost the rental return, which might work as it is within walking distance of Chichester's city centre. Personally I'd stick with the layout as is, particularly as it is in decent condition. In fact it looks like it's been freshly decorated and carpeted and the kitchen and bathroom are reasonably modern too. It should attract a young couple or young family unit, who are looking for a 'budget' property by Chichester's standards. The rooms are of a good size and it has the all important gas central heating and double glazing alongside a long lease (albeit with those hefty service charges).
It is on the market with Purplebricks and full details can be found on Rightmove via the following link:
http://www.rightmove.co.uk/property-for-sale/property-62187484.html
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