Summary:
4 bed house in Chichester
Listed for sale on 29/05/20 @ £485,000
Now = £450,000
Rent = £1,600pcm
Yield = 4.3%
Listed for sale on 29/05/20 @ £485,000
Now = £450,000
Rent = £1,600pcm
Yield = 4.3%
To coincide with writing about the stamp duty relief up to £500,000 that now exists, I thought I'd pick a buy-to-let property that maximises that saving. I found a new-build property on Graylingwell Park at £490,000 (close enough right?) but then noticed an identical house (albeit a couple of years old now) up for sale for £450,000. A £40,000 saving for having had someone else work through the snagging - sounds like a deal to me!
At over 1,600 square feet I believe it is one of the largest houses on Graylingwell Park. It also means on a '£ per square foot basis' it compares well to other properties on the estate and in Chichester. Having been reduced to £450,000 from £485,000 when first listed in May, it means it now costs around £280 per square foot. Three-bedroom houses on Lloyd Road in Graylingwell Park are around 1,000 square feet and £330,000, equating to £330 per square foot, whilst the average value in Chichester is around £340 per square foot.
You often find good value like this on townhouses such as this property i.e. ones set over three floors. The house provides four generous double bedrooms, a large living space and a kitchen/diner. Bear in mind as well that published square footage doesn't include the integral garage and large balcony! Even the garden (which is South-facing) is a reasonable size compared to others on the estate.
The above goes to show that what may seem relatively expensive at first glance compared to nearby properties actually isn't when you delve a little deeper. Unfortunately, it can take the market a little while to work this out, which will have a similar impact on the rental value. £1,600pcm seems relatively conservative for such a large property in great condition and in a nice part of Chichester. But that is reflective of prospective tenants just seeing it as a '4 bed end-of-terrace'. Even so, a 4.3% rental return based on that figure isn't bad in the wider context of buying a property significantly below it's new-build equivalent, which should do well from a capital growth standpoint as people catch on to its positives in the future.
The property is on the market with White & Brooks and full details can be found on Rightmove via the following link:
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