Monday 12 March 2018

BUY-TO-LET DEAL OF THE WEEK: 2 bedroom flat in Chichester, £170,000, 5.5% yield

2 bed flat, Charles Ave, Chichester
kitchenLounge

Summary:
2 bedroom flat in Chichester
Listed for sale on 22/04/17 @ £175,000
Now = £170,000
Rent = £775pcm
Yield = 5.5%

Last sold in October 2004 for £142,500 (+19% in 13.5 years)

Having just written about the cheapest property available in Chichester, it stands to reason that I should take a look at it to see whether it could make for a good buy-to-let (funnily enough, the most expensive property at £1.55m isn't on most landlords' radar as a potential buy-to-let!).

Having languished on the market since April 2017, clearly the cheapest property in Chichester isn't to everyone's taste! Originally marketed at £175,000, it is now priced at £170,000, so with just a £5,000 reduction in nearly a year on the market, there's not much desperation to sell.

There are tenants in situ, currently paying £775pcm, so I guess the current owner isn't too bothered in selling it below what they expect to achieve, whilst they continue to receive a very healthy 5.5% yield. Having paid £142,500 in October 2004, there's also a potential capital gain of 19% if they achieve their current asking price.

That highlights one of the often cited keys to property investment - are you looking for rental return or capital growth? It's rare to offer a property that offers stellar returns on both. Generally the lower-end properties provide a better rental return (money today) whilst the more expensive properties tend to increase more in value (money tomorrow).

For a landlord looking for a straight out of the box investment, with no hassle in having to find tenants or refurbish a property, this flat in Chichester could be a good investment. As ever with leasehold properties, be sure to check the length of the lease along with the ground rent & service charges.

It is on the market with King and 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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If your 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.

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


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Chichester rental valuation

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