Monday, 16 September 2019

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Chichester, £230,000, 5.1% yield

3 bed house, Spitalfield Lane, Chichester
3 bed house in Chichester
Listed for sale on 04/04/19 @ £240,000
Now = £230,000
Rent = £975pcm
Yield = 5.1%

Having recently been reduced by £10,000, this is now the cheapest three-bedroom freehold property in Chichester. The thing is there's a reason for that, although to what extent is unknown. You see, the advert says it is "in need of some modernisation" but as there are no internal photos of the house at all, I fear how much there might be to do!

The EPC gives some indication here - with a lowest possible G rating and some outline details, like the fact there is electric heating rather than gas. So this property is definitely one that needs to be viewed to understand the works and costs necessary to get it up to standard.

It is in a good location though, close to both St Richard's Hospital and the city centre. Some of the properties along here are also student lets as it's close to the University, however I'd rather see it let to a family, for which you're likely to achieve around £975pcm when the property is done up. On this basis, the headline figure of a 5.1% rental return therefore seems very good for a freehold property, but of course there's (potentially a lot of) money to be spent before it is in a rentable condition (or is even legal to do so, requiring energy upgrades to get the EPC up to the legally required E rating).

Some landlords prefer to purchase properties they can rent out and start earning from straight away. There is certainly less risk involved with this approach, compared to buying a property that needs refurbishment and thus has the potential for cost overruns and time delays scuppering even the best laid-out financial projections. For someone prepared to take on a project though, this property could fit the bill.

It will be interesting to see whether the bathroom is moved upstairs and, in doing so, whether the three-bedroom house becomes a two-bed and the effect this happens on the end value; what would you do?

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

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 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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