Monday, 23 April 2018

BUY-TO-LET DEAL OF THE WEEK: 3 bedroom house in Westhampnett, £325,000, 4.0% yield

3 bed house, The Sadlers, Chichester, West Sussex
kitchen lounge

Summary:
3 bedroom house in Westhampnett
Listed for sale on 29/03/18 @ £339,950
Now = £325,000
Rent = £1,100pcm
Yield = 4.0%

Last sold in 2001 for £195,000 (+67% in 16 years)

This large and well-presented townhouse in Westhampnett could make a decent buy-to-let purchase for the right landlord. There's a similar property in the same street for sale at £365,000; so this one (reduced this week from £339,950 to £325,000) seems to be for sale at a good price.

From a rental return point of view though an expected rent of £1,100pcm (another one in the row has just been let for £1,100pcm) only returns a 4% rental yield based on paying the full asking price. Whilst I know of many landlords not even achieving 4% on new purchases, longer-term readers of my buy-to-let deals of the week will know that figure is at the low-end of the scale of the properties I tend to highlight.

Never the less, the quality of the property internally, the size of the rooms and the decent purchase price could still make this a good value proposition for a long-term investor. With the size of accommodation on offer I'm surprised the rent achieved by the other agent recently wasn't slightly more than £1,100pcm, which I guess shows the drop in rents across the board within Chichester at the moment. It could also mean though that when things 'normalise' a little, the rent has the chance of approaching £1,150pcm-£1,200pcm (which I've previously let similar properties for) and thus that rental yield could improve to 4.2%-4.4%; which is more in line with expectations of yields in and around Chichester for single-let freehold properties.

The property is on the market with Charles Peck and full details can be found on Rightmove via the following link: www.rightmove.co.uk/property-for-sale/property-72311648.html


If your 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 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


Chichester rental valuation

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