Summary:
5 bed house in Westergate Listed for sale on 20/01/20 @ £450,000 Rent = £1,600pcm Yield = 4.3% Last sold for £329,995 in 2014 (+36 in 6 years)
This is not a typical property I'd choose as my buy-to-let deal of the week for a variety of reasons:
- it's big. Five bedroom detached house big! Demand for such large houses amongst tenants is typically lower than the more 'normal' two and three bedroom houses. But there is still a market for such properties and the fact there aren't many of them can actually make this a positive when it comes to finding tenants, as those in need of a house this size will jump at the chance when it becomes available. - it's expensive. Priced at £450,000, it's far higher than the typical £200,000 - £350,000 range I suggest is a 'sweet spot' for local property investment. But for a house in such excellent condition and with 1,800 square feet of floorspace, it means it comes in at £250 per square foot, which is great value. - it's in Westergate. That's not typically an area I pick properties from, mainly because it's more an area for owner-occupiers than renters. But there's been a lot of building in the area recently, so I'm seeing more houses in Westergate become available on the rental market, which shows there is a demand. And why not, it's a nice location with shops and a school within easy access of the A27 (many of the things I was saying about Tangmere several years ago before it seemingly jumped in value). - it's gone up in price alot since it was last sold. I always look at what the current owner paid as a guide to whether you're getting decent value i.e. has the price gone up more or less than it 'should' have done? It was last sold for £329,995 in 2014, so on paper the current owner is sitting on £120,000 of profit, as its asking price now of £450,000 is some 36% higher just six years on. Having said that though, they have clearly spent a lot of money on it; with a new kitchen, bathrooms, log burner, flooring and décor all being completed since. So whilst you're not getting a 'bargain', it doesn't look too overvalued compared to what else has sold recently on the street. So, whilst I expect this property to sell to an owner occupier rather than be bought as a buy-to-let, there are some landlords who prefer to buy larger, more expensive homes. Whilst the rental yield (4.3% based on a rent of £1,600pcm) might not be quite as strong as you could achieve on cheaper properties, there's something to be said for relying on the capital growth of a premium home such as this, whilst also only having one set of tenants to take care of in the meantime. 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-88575053.html |
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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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