Monday, 10 February 2020

BUY-TO-LET DEAL OF THE WEEK: 2 bed house in Chichester, £225,000, 4.5% yield

2 bed house, Berkeley Mews, Chichester
kitchenlounge
Summary:
2 bed house in Chichester
Listed for sale on 05/02/20 @ £225,000
Rent = £850pcm
Yield = 4.5%

Last sold for £186,000 in 2019 = +21% in 1 year

These two bedroom houses are lovely little properties close to Chichester's city centre and yet in an unusually quiet cul-de-sac you'd barely notice. They're an ok size for a starter home, with a good-sized double and small single bedroom. Curiously for a house they are leasehold and come with communal gardens rather than a private one. This can make them appear like a two-storey flat rather than a 'proper' house in many peoples eyes.

What's particularly curious with this property is it was sold only last November...for £186,000. That's some 17% lower than the current asking price of £225,000 and in that time it's only been subject to a light overhaul (new flooring and décor plus a few fixtures) rather than a full overhaul. This causes me an issue in truly promoting it as a good buy, as it's clear you could've bought it for much less only a few months ago. Furthermore, a mortgage surveyor will pick up on this fact and it could affect their valuation as there isn't any real justification for it (other than the current owners bought it cheap). You should also factor in that the most expensive house ever sold in Berkeley Mews went for £205,000 in 2014.

What is also curious is It's got furniture in it now, so it doesn't appear to have been a quick buy, refurb and sell project. Maybe the owners are living in there very short-term (perhaps for tax reasons?), have tenanted it short-term rather than having it empty, or have 'dressed' the property for sale. Either that or their circumstances changed very quickly indeed.

Fundamentally this is a well-presented property in a great location close to Chichester's city centre that is popular with young tenants who get the layout and privacy of a house (plus two parking spaces!) but don't need to tend to a garden. It should rent for £850pcm, which is a decent 4.5% return for a house - but bare in mind it's leasehold and comes with service charges, so really this figure should be compared to a flat, which makes it a little low. And that comes back to the price - some £39,000 more than the current owner paid just a few months ago and £20,000 more than one has ever sold for in the development. Perhaps it should be 'one to watch' rather than 'one to buy now' based on digging into the story behind the property.

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-89128502.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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