BUY-TO-LET DEAL OF THE WEEK: 1 bedroom flat in Tangmere, £155,000, 5.8% yield

Summary:
1 bedroom flat in Tangmere
Listed for sale on 20/03/18 @ £155,000
Rent = £750pcm
Yield = 5.8%

Last sold in 2012 for £100,000 (+55% in 6 years)

This one bedroom flat in Tangmere near Chichester could be a great buy-to-let investment for someone looking at the lower price range of the market.

At £155,000 it offers a low entry price into the local buy-to-let market, along with a fantastic 5.8% rental yield. That's based on a rent of £750pcm, which seems reasonable for a good sized flat in excellent condition, with the necessary mod-cons and a garden. It also has the benefit of a garage, so the flat could be marketed as £700pcm (similar to other one bed flats nearby) and the garage separately for £50pcm.

Because it has its own private entrance and rear garden, this is likely to appeal to a range of tenants who might ordinarily avoid a flat due to a lack of private space. Bear in mind that it's still a leasehold property though, so provision needs to be made for ground rent and service charges.

With one bedroom houses offering similar accommodation, but with a £20,000 premium on the price, this seems to be an excellent value proposition. Not as excellent value as the previous owner got it for mind - paying just £100,000 in 2012, meaning they've received a phenomenal 55% capital growth in just six years. It appears to have had a new bathroom, kitchen and general refurbishment though, so that figure isn't all profit. It was still a very shrewd purchase though, especially when you consider the owner before paid £119,000 in 2005.

It's low price compared to the rest of the market suggests there's still scope for the purchaser this time round to see decent capital growth in the future. Whilst they do they'll be receiving a good rental return from a property in great condition and a nice location that should appeal to young professionals and couples.

It is on the market with Bell & Blake and full details can be found on Rightmove via the following link: www.rightmove.co.uk/property-for-sale/property-72122408.html

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