Monday, 6 May 2019

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Fishbourne, £289,950, 4.8% yield

3 bed house, Cuckoo Fields, Fishbourne, Chichester
kitchenlounge

Summary:
3 bed house in Fishbourne
Listed for sale on 11/04/19 @ £299,950
Now = £289,950
Rent = £1,150pcm
Yield = 4.8%

Last sold for £250,000 in 2011 (+20% in 8 years)

There's a few very similar three-bedroom houses on this newish estate in Fishbourne currently for sale. That means they're effectively competing for the same buyer, which has led to what I think is the possibility to purchase them at a good price.

The cheapest of the three available is this one, priced at £289,950 having been reduced by £10,000 just a few weeks after coming on the market (possibly in reaction to a chunky £25,000 price reduction from another that's been on for a few months, brining it down to the £300k mark).

Considering the house is only eight years old (in which time the value has increased just 20% from when the current owner paid £250,000, compared to an average increase locally of 33% in the same timeframe) it remains in very good condition. These houses are modern enough to appeal to young professional tenants, who appreciate a little more space and tranquillity living in Fishbourne versus being closer to Chichester's city centre.

Having said that, one downside of these houses is the size of the bedrooms. Having let a few in the past I can tell you this is pretty much the only barrier to renting them out. The downstairs' space is good, kitchens are modern and come with integrated appliances and the houses have gas central heating, double glazing, a cloakroom, family bathroom and en-suite. But the bedroom sizes aren't great - even the master is only a smallish double due to the en-suite eating into the space. The second and third bedrooms aren't really capable of being called a 'double' bedroom; in truth I've seen two-bedroom houses with a larger footprint upstairs than this house.

Nevertheless, if you can find someone for which this isn't as important as living on a nice estate, in a nice area and with a good quality home (typically a young professional couple and possibly a young child - no more than that), you should be able to rent it for £1,150pcm. That would equate to a 4.8% rental return, which is strong for a freehold house in such good condition. Even snipping £50pcm off the rent will mean a 4.6% return, which is still good and would then be based on a conservative rental figure.

The property is on the market with Sims Williams and full details can be found on Rightmove via the following link:
https://www.rightmove.co.uk/property-for-sale/property-71069041.html


If you 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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