Monday, 9 March 2020

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Tangmere, £315,000, 4.4% yield

3 bed house, Nicolson Close, Tangmere
kitchenlounge
Summary:
3 bed house in Chichester
Listed for sale on 28/02/20 @ £315,000
Rent = £1,150pcm
Last sold for £235,000 in 2009 (+40% in 11 years)
Yield = 4.4%


This modern, detached, three-bedroom house in Tangmere looks to be a decent buy-to-let prospect. The terraced three-bedroom houses nearby are typically priced at around £275,000, so the £40,000 premium in price (this property has just been marketed for sale at £315,000) gives you bigger rooms, a garage and a more modern detached property with driveway.

That seems a fair price to pay, and whereas with the older-style three-bedroom houses I typically attach a rental price of around £950pcm-£1,000pcm, you should see a decent uplift in rental price for this particular home too, as they are less commonly available. I'd suggest a rental figure of £1,150pcm, which would provide a decent 4.4% rental return.

There should also be potential for further capital growth in the future, particularly as the large new development in Tangmere is built and the new houses will be sold at a premium price. Yet with three good size rooms, a cloakroom downstairs, an en-suite and bathroom upstairs plus the now to be expected double glazing and gas central heating, short of a few minor cosmetic tweaks this could once again be compared to a new home. Bear in mind too that many new homes are built in terraces and so to have a detached home with a driveway and garage is both rare and typically comes with a hefty premium as a result.

The current owner bought the property in 2009 for £235,000, so has overseen a 40% growth in its value. Interestingly, they purchased it at a lower price compared to the previous owner, who paid £244,500 in 2006, having to accept a loss a few years later as the credit crunch bit.

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-89940107.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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