Monday 23 July 2018

BUY-TO-LET DEAL OF THE WEEK: Apartment block in Chichester, £1,000,000, 4.8% yield

Apartment block, Orchard Street, Chichesterloungekitchen

Summary:
Apartment block in Chichester
Listed for sale on 14/07/18 @ £1,000,000
Rent = £48,420pa
Yield = 4.8%

Do you have a spare £1million? Great! Then you could buy this whole apartment block close to Chichester's city centre. Developed ten years ago it consists of five apartments - so that's an average of £200,000 each - not bad! Three of them are one-bedroom apartments, with one two-bedroom apartment and a penthouse consisting of three/four bedrooms. 

The advert, frankly, isn't great. But that's fine - it gives us an opportunity to purchase it at a decent price (i.e. cheaper than it should be). Minimal description, only 12 photos for a total of five apartments (none of which are labelled) and there's no floorplan or breakdown of the tenancies. That is unless you click on the property brochure at the bottom of the page, which very few people bother to do (most just look at the advert as it is online).

The advert doesn't make it clear which apartments are currently let and which are vacant, but the agent has surmised a rent roll of £48,420 per annum. It's hard to value each flat's rental potential from what limited information there is, but I'd expect £750pcm for the one-bed apartments, £850pcm for the two-bedder and £1,100pcm for the four-bedroom penthouse. Tally this up, and I get a potential uplift to £50,400 per annum.

Either way, the conservative figures would suggest a rental return of 4.8%, which is still decent for Chichester, especially factoring in that the block comes with the freehold (unlike if you were buying an individual apartment). And as the block is only around ten years old there shouldn't be much to do internally - the apartments look to be in good condition.

That would also be a positive in regards to finding tenants for these well-positioned apartments. Again, there's no information in the advert regarding the title of the property, but if they are all on one freehold title there could also be decent uplift in value by splitting them into five individual leasehold titles and keeping the freehold separate. Afterall, considering the average values of one, two and three bedroom apartments in Chichester could see them valued at a combined £1.2m if sold separately.

The property is on the market with Nexa Properties and full details can be found on Rightmove via the following link: 
https://www.rightmove.co.uk/property-for-sale/property-66390115.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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