Property prices in Chichester are up 30% in the
past five years, which means most property sales now go through at a higher
price than the previous owner paid.
In some cases, properties are being sold for far
more than they were just a few years ago, tempting some people into ‘flipping’ the
property they bought during the ‘credit crunch’.
A good example of this is a four-bedroom house in
Graydon Avenue that sold for £510,000 in October. That’s 75% more than the
£292,000 it sold for in September 2008, which was when the credit crunch was just
about kicking into top gear. When you consider the price had only risen 12% in
the six years prior to this sale (when it had sold for £260,000 in December
2002) the increase in the past nine years is even more astounding.
All time high house prices are also allowing the
‘accidental landlords’, who decided to rent out their former homes rather than
sell them at a price they didn’t deem acceptable, to now offload their old
property. This is adding fuel to the noticeable drop in the number of rental
properties that are available in Chichester.
Even though property prices have recovered, it is
rare in Chichester for investors to buy, refurbish and ‘flip’ properties like
they used to in the former ‘Property Ladder’ days. Extra stamp duty to second
home buyers and greater competition from first-time buyers benefitting from low
interest rates has meant the margin to do this has largely dried up here in
Chichester, where properties also don’t tend to fall into disrepair as often as
in other less affluent areas.
Most professional landlords instead adopt a ‘buy
and hold’ approach to property investment so as to benefit from the long-term
capital growth houses have historically offered. Recent sales data demonstrates
how long-term investment in property can reap big rewards, as a three-bedroom
house in Kensington Road recently sold for £350,000. This is 415% higher than
when it was bought for £68,000 in 1996, which is an annualised increase of 8.1%.
Even with such strong house price rises in recent
years though, property isn’t always a one-way bet. An apartment was sold in
Chichester in July this year for £149,950...some £81,000 less than when it sold
for £230,950 in May 2009! In this example however, the apartment in question is
in a retirement complex - a type of property that is notorious for being
difficult to sell and generally offering a poor financial return.
If you’re looking at buying a property in
Chichester and would like a free background check on its previous sale prices
and how that compares to the wider market, please get in touch.
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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.
E-mail me on clive@crjlettings.co.uk or call 01243 624 599.
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