Monday 13 November 2017

BUY-TO-LET DEAL OF THE WEEK:4 bedroom flat in Chichester, £215,000, 7.8% yield

Kingsham Avenue, Chichester
4 bedroom flat in Chichester
Listed for sale on 07/11/17 @ £215,000
Rent = £1,400pcm
Last sold for £175,000 in June 2017 (+23% in 0.5 years)
Yield = 7.8%
A bit of an odd one this week as I've selected a decent buy-to-let deal in Chichester with a monster yield that I recommend you don't buy! Not at the advertised price at least.

You see, eagle-eyed Chichester Property News fans may have recognised this 'four' bedroom apartment as I highlighted it as a buy-to-let deal of the week last year( Back then it was marketed as a three bedroom apartment, priced at £200,000.

It subsequently sold for £175,000 in July this year, after nearly a year on the market. Now, just four months later, the current owner is trying to sell it again at a £40,000 / 23% profit...having done seemingly very little to the property! Other than re-naming the dining room to bedroom four and somehow achieving £1,400pcm in rent. This might have been possible had it been let room-by-room (as I suggested could be doable in last year's write-up), but from the family photos on show it seems to me to be let to a single family.

If that is the case that rental figure seems way too high and not a viable long-term figure. This could be enough to coax an unwary 'investor' into taking on the property at a now, in my opinion, inflated price, as they assume they'll be able to get £1,400pcm (and a great 7.8% yield) forever. As I said last year, £900pcm is a more likely figure as a single let, but on a multi-let basis you could probably achieve double that.

Fundamentally this could be a sound buy-to-let property and having bought it for £175,000 I think the current owner has done very well. I'm a little bemused as to why they would want to sell it just four months later, particularly if they are achieving that great rental return. The details suggest there's 94 years left on a lease, which is only costing £100 per annum in ground rent & service fees. If so, it could be a great long-term buy-to-let, being reasonably close to Chichester's city centre and the forthcoming Southern Gateway improvements.

It is on the market with Gilbert & Cleveland 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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