Monday, 2 September 2019

BUY-TO-LET DEAL OF THE WEEK: 2 bed house in Tangmere, £227,500, 4.9% yield

2 bed house, Tamar Way Tangmere
kitchenlounge
Summary:
2 bed house in Tangmere
Listed for sale on 18/08/19 @ £227,500
Rent = £925pcm
Yield = 4.9%

Having let two very similar two-bed houses in Tangmere to this in the past week, I'm in a good position to say that tenant demand for such properties is strong and that this house should rent for £875pcm. It also has the bonus of a garage though, and that will add £50pcm to the value, meaning a total return of £925pcm. That would provide a very decent 4.9% rental return based on the asking price of £227,500.

There is some cosmetic work that needs doing to the property to be able to rent it; primarily decoration and a tidy-up of the garden, although you may want to check the state of the kitchen and bathroom too. The kitchen in particular is starting to look a little dated so it might pay to change this, although you could probably get another tenancy out of it first.

Interestingly at the end of last year a similar house on the street sold for £223,500, which had a downstairs cloakroom and a new kitchen. So whilst the price tag for this property compares well to what else is on the market, these houses have been available for less money in the recent past, whilst house prices have remained flat.

The fundamentals of double glazing and gas central heating are already there and Tangmere is growing in popularity, with their house prices catching up. A few years ago these houses were available for around £180,000, meaning they've increased a good 25% since then. The owner of this house bought it in 1997 for £58,950, meaning it has practically quadrupled in value in just over two decades! It seems unlikely house prices could repeat that trajectory again, unless this will be a million pound house by the year 2040!

The property is on the market with Bell & Blake and full details can be found on Rightmove via the following link:
https://www.rightmove.co.uk/property-for-sale/property-84070346.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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