This two bedroom apartment in Chichester has been on the market for eight months, making it one of the slowest properties to sell on the market. The photos show an empty property, and in pretty decent condition too, whereas the kicker as a buy-to-let property is that it actually has a tenant in situ.
I assume the owner got tired of having an empty property to sell so decided to rent it, earning £775pcm whilst they wait for a buyer to come along. It's debateable as to whether being able to offer vacant possession would help the saleability of the apartment as its likely owner will be a landlord anyway.
That monthly rent equates to a yield of 5.5%, which is good for a property in Chichester, albeit you'll need to factor in the leasehold management charges and ground rent. Even so, to earn a relatively strong return from day one (assuming the tenants are looking after the property and paying the rent) could mean this apartment would be a wise investment for a landlord looking for a proven and immediate income.
Even though it's been on the market for so long, the owner is staying relatively firm in their asking price. Initially listed at £175,000, it is now on sale for 'offers in excess' of £170,000, so there hasn't been much of a drop in price. That's about the price similar apartments have sold for in the area recently and is only 19% more than the current owner paid 13 years ago!
That to me illustrates the story of this apartment - a good rental return in the short-term but at the sacrifice of weaker capital growth in the long-term. The reason for this is that it is a flat in one of the cheaper and least-desirable parts of Chichester. That means you'll regularly find tenants, but won't be able to sell the property on at top dollar to a first-time buyer looking for their dream home.
If you're looking for a lower cost entry into buy-to-let property in Chichester, or prefer to seek out rental income as opposed to capital growth, this apartment could make a great buy-to-let investment.
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
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