Monday 14 May 2018

BUY-TO-LET DEAL OF THE WEEK: 2 bedroom house in Chichester, £210,000, 5.6% yield

2 Bed housem College Lane, Chichester, West Sussexkitchenlounge
Summary:
2 bedroom house in Chichester
Listed for sale on 04/05/18 @ £210,000
Rent = £975pcm
Yield = 5.6%

Before you fall off your chair at the thought of a two-bedroom detached house in Chichester for just £210,000, bear in mind that is just the guide price of this auction property (due to go under the hammer on 22nd May) and that it is in rather a shocking state!

I'd be interested as to how this council owned property got into such a poor condition, as it will need a complete overhaul from the eventual buyer. The fundamentals are in place though - large rooms, double glazed windows and gas central heating. It backs onto Oaklands Park and from a rental point of view is opposite Chichester University.

I think it would therefore be sensible to forego the likely £975pcm rent from renting it to a couple or family and instead create a three, or even four, bedroom home for students. That would turbo-charge the already strong rental yield (albeit one that's based on a guide price and pre-refurbishment spend).

As ever with auction properties, be sure to view it and weigh up the cost of refurbishment in plenty of time before the auction. Factor in the total spend you're willing to go to and work backwards as to what your highest bid will be - and stick to it! Bear in mind the special conditions of sale (often stipulating that you'll pay for the sellers legal fees) as well as the seemingly ever-increasing auctioneers fee (£1,000 in this case!).

For someone who does their sums right and has a plan in regards to their target audience (I'd suggest students) this auction property could be a winner.

The property is on the market with Barnard Marcus and full details can be found on Rightmove via the following link:
www.rightmove.co.uk/property-for-sale/property-65201560.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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