Monday, 7 October 2019

BUY-TO-LET DEAL OF THE WEEK: 2 bed flat in Chichester, £180,000, 5.3% yield

2 bedroom flat, Bewick Gardens, Chichester
kitchenlounge
Summary:
2 bed flat in Chichester
Listed for sale on 30/05/19 @ £210,000
Now = £180,000
Rent = £795pcm
Yield = 5.3%

Last sold for £99,950 in 2001 (+80% in 18 years)

Two-bedroom apartments close to St Richard's Hospital in Chichester are popular with landlords, as they can be safe in the knowledge that they will rent quickly to Doctors, nurses and hospital workers, be they a couple or two sharers.There are some older ex-council flats in the area along with some that have been newly-built in the past 5-10 years, whilst this flat falls in-between these, having been built in 2001.

Everything looks original from 18 years ago, meaning it's getting to the stage of needing a refurbishment to the kitchen & bathroom, although it seems to have been kept in decent condition given its age. It could definitely do with re-decoration and re-carpeting though. Unfortunately it has electric storage heaters, which are more difficult to upgrade to what many tenants now see as a 'minimum requirement' i.e. gas central heating.

The first and current owner of the flat paid £99,950 when it was new 18 years ago, meaning it has increased 'only' 80% to its current asking price of £180,000 (which has dropped significantly since being first marketed in May for £210,000). I say it's 'only' increased 80%, as properties as a whole in Chichester have increased an average of 130% in this timeframe (with flats a less profitable 110% up).

Once the property is re-decorated and carpeted it should rent for £795pcm. This would mean a 5.3% rental return based on the current £180,000 asking price. Bear in mind the ground rent and service charges though, which are relatively high for this property. Flats built between 2000-2008 seem to suffer from some of the highest service charge demands for some reason; in this case they amount to £1,345 a year (plus £100 ground rent). That instantly brings the rental return down to 4.5%, and it could be the reason why this otherwise good sized, well located and reasonably priced flat has failed to sell.

The property is on the market with Purplebricks and full details can be found on Rightmove via the following link:
https://www.rightmove.co.uk/property-for-sale/property-74029339.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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