Monday, 11 June 2018

BUY-TO-LET DEAL OF THE WEEK: 2 bedroom house in Chichester, £259,950, 4.4% yield

2 bed house, Swanfield Dr, Chichesterkitchenlounge

Summary:
2 bedroom house in Chichester
Listed for sale on 01/06/18 @ £259,950
Rent = £950pcm
Yield = 4.4%

Last sold for £97,500 in 2007 (+167% in 11 years)
This two-bedroom house in Chichester could make a fine buy-to-let property for a local landlord. Located close to St Richard's Hospital and with good sized rooms it should attract a variety of tenants (young couples or two sharers being the most likely, particularly hospital workers). 

It has a large lounge, a decent-looking kitchen/diner and two double bedrooms along with a bathroom upstairs. There's also plenty of off-road parking to the front and a low-maintenance garden to the rear. I'd suggest changing those red patterned carpets, but otherwise there shouldn't be much to do to ready it for prospective tenants.

Priced at £259,950 it isn't the cheapest two-bedroom house in Chichester, but it is still cheaper than the average two-bed home. Importantly I'd pick this one over another I almost picked as my buy-to-let deal of the week, which was £10,000 cheaper, because on a £ per square foot basis it is better value i.e. it's a good deal bigger than the (only slightly) cheaper, but much smaller, other two-bed house nearby.

Another reason I picked this home was to be able to highlight the staggering amount of money the current owner will have made upon its sale. They purchased it for just £97,500 in 2007 - that's a 166% increase in 11 years! My best guess would be this low low price (at the peak of the previous property boom) was at a significant discount to the true market value due to a right to buy scheme. Sometimes an unusually low price such as this can also be explained by it being a shared ownership property; but normally there'd be a mention of that in the sales particulars, so I'm going with a former council tenant buying their home...or some staggering negotiating powers!

Either way, £259,950 is a realistic price in today's market and I'd expect to achieve a rental figure of £950pcm once a few upgrades are made due to its particularly good size and convenient location to the hospital. This would then give a decent 4.4% rental return based on paying the full asking price.

The property is on the market with Bell & Blake and full details can be found on Rightmove via the following link: 



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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