BUY-TO-LET DEAL OF THE WEEK: 2 bed house in Tangmere, £250,000, 4.6% yield
Summary: 2 bed house in Tangmere Listed for sale on 04/12/18 @ £270,000 Now = £250,000 Rent = £950pcm Yield = 4.6% Last sold for £268,000 in 2017 (-7% in 2 years)
I've highlighted a few properties on the new Bader Heights development in Tangmere as recent buy-to-let deals. But when these modern newly-built houses are coming on the market for not much more money than the 'old' houses in Tangmere (without downstairs cloakrooms and en-suites) AND for not much more than when they were first sold, you can understand the appeal. In the case of this two-bed semi-detached house (available for £250,000) it's actually 7% CHEAPER than when it was sold new in 2017 for £268,000.
It's also cheaper than another (end-terrace) two-bed house for sale on the estate and is barely more than the £230,000 an old two-bed house is listed for around the corner (not only older but smaller and without the en-suite and cloakroom). Having originally been listed for £270,000 it's had a decent price reduction and yet, seeing as it's already below what they paid, suggests missing equity isn't necessarily an issue. Also, as the photos show the property is vacant they should be keen to sell as the opportunity cost of not doing so is also losing the vendors money.
Clearly there's nothing that needs doing to get the house in tip-top condition ready for a tenant. A recent two-bed house on the estate was marketed at £975pcm. I'd go for £950pcm personally, as values and the market as a whole have softened slightly. This would still give a decent 4.6% yield from a freehold house in excellent condition. My only slight reservation with these houses is that in adding an en-suite (normally a great bonus) it has made the master bedroom rather small. On this occasion I might have preferred the houses to have no-ensuite, leaving two large double bedrooms and a nice shared bathroom (which would've been cheaper to build too!) - whilst an en-suite for a new-build three-bed is an essential, for a two-bed likely to rent to a young couple it's less of a necessity.
The property is on the market with King & Chasemore and full details can be found on Rightmove via the following link:
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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:
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