Monday, 15 June 2020

BUY-TO-LET DEAL OF THE WEEK: '5' bed house in Chichester, £325,000, 4.8% yield

Red semi-detached brick house with a garage
Semi-modern kitchen with a wooden finishlounge

***This property sold over the weekend, showing what a good deal it was! Subscribe here to receive the buy-to-let deals a few days before they're published online***

Summary:
'5' bed house in Chichester
Listed for sale on 19/02/20 @ £370,000
Now = £325,000
Rent = £1,300pcm
Yield = 4.8%
Last sold for £275,000 in March 2012 (+18% in 8 years)


This semi-detached house close to Chichester's hospital is marketed as having five bedrooms. It's certainly a good-sized townhouse and in its current form is used as a five-bedroom student property (requiring it to be licenced). As a result it achieves £2,556pcm according to the advert (a 9.4% rental yield), although that includes bills and is unclear whether it's a full 12/12 months of the year contract. Furthermore, it's unclear whether the house is already let for the next student season and, even if it is, whether that lease will be realised in the current circumstances of University's debating whether they'll open in their current form.

Strip all that back though, and this house remains a good buy even as a 'normal' let. It can indeed be used as a five-bedroom home, although originally these properties were marketed as three-bedroom houses with a reception room on the middle floor (potential bedroom four) and study on the ground floor (potential bedroom five). This makes them very flexible for a variety of tenants and families. As a result I believe it could achieve £1,300pcm, which would provide a decent 4.8% rental return from what is a freehold property in good condition in a popular rental location in Chichester.

Built in 2007, it first sold for £265,000 before being bought by the current owner for £275,000 in 2012. It was listed for £370,000 in February, but two price reductions later sees it now marketed for £325,000. This seems excellent value for the size of property, and means the current owner will only bank a 18% gain in eight years (well below the average price rise of 49% in Chichester in that time) having knocked £45,000 off the original asking price. A similar neighbouring property sold for £335,000 in September 2016, which seems to backup the fact that this house is now available at a very decent price.

The property is on the market with Nexa 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 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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