Summary:
3 bed house in Chichester Listed for sale on 04/12/19 @ £425,000 Now = £330,000 Rent = £1,200pcm Yield = 4.4% Last sold for £295,495 in 2010 (+12% in 10 years)
I saw this three-bedroom house on the first phase of Graylingwell Park come on at the end of last year. It was priced at £425,000, which I assumed was a typo and it was meant to have been listed for £325,000 (which is what similar properties on the street were selling for). Alas, a few days went past and the priced stayed the same and I thought "huh?".
I guess the market felt the same way, what with it being reduced to £400,000 within a few weeks, before dropping a chunky £50,000 to £350,000 in February and now this month it has been reduced to £330,000. That's a £95,000 drop (22%) compared to when it was first marketed. Now, I'll make a side-point here - what's going on? Either the agent allowed the vendor to market the property at a wildly unrealistic price, or the agent provided the wildly unrealistic price and the vendor has allowed them to reduce it by nearly a quarter since...and stuck with them?!? Quite bewildering. Putting that to one side, let's focus back on the house itself. Lloyd Road is something of a pet project for me...I lived on the street for six years, own a house on it and manage several others there. I'm well-versed in the intricacies of the varying plot sizes, layouts, parking allocations and which properties benefit from solar panels (and when they were commissioned, which greatly affects their feed-in-tariff rates). The houses are well presented and offer a good amount of space and a good quality of fixtures and fittings. They therefore typically appeal to young professionals who are willing to pay a slight premium for what do feel like premium homes. As such, I'd expect to achieve £1,200pcm for the property, although the particularly small garden might put some people off. On the plus side though, whilst parking is an issue in the street for many, this house has the benefit of two allocated parking spaces. That rental figure would mean a 4.4% rental return on the current asking price. That's a fair, if unspectacular return, for freehold properties in Chichester. It also raises the point that the solar panels on these houses never seem to add to the sale value, but if you buy one with them they can put £100+ per month in your pocket from the feed-in-tariff. The current owner bought the property in 2010 for £295,495, meaning they've only seen its value increase by 12% in a decade, compared to the average Chichester home increasing by over 40%! The property is on the market with Cubitt & West and full details can be found on Rightmove via the following link: https://www.rightmove.co.uk/property-for-sale/property-66811512.html |
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