Monday, 10 August 2020

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Westhampnett, £345,000, 4.9% yield

3 bed house in Westhampnett
Listed for sale on 20/06/20 @ £365,000
Now = £345,000
Rent = £1,400pcm
Yield = 4.9%

I thought best to follow up this week's article about '£ per square foot' by taking a case in point. There are two three-bedroom houses available for sale in Lillywhite Road in Westhampnett; this one, priced at £345,000 (having been reduced from £365,000) and another at £307,500 (having been reduced from £325,000. 

Both are a similar age (built circa 2010), are in good condition, include a garage and are primed for Rolls Royce employees who fancy walking the mere few hundred yards to work. They are also both leasehold houses, which marks them down as unusual (and in some peoples eyes unsuitable). Where the two houses differ though is on their size.

The 'cheaper' of the two (many people's 'obvious' choice as a result) is set over two floors and totals 907 square feet (excluding garage). That equates to £339 per square foot, which is above Westhampnett's average of £299 per square foot. My buy-to-let pick though is set over three floors (and should arguably be described as a four-bedroom house) and totals a massive 1,348 square feet (again excluding the garage). That equates to a bargain-busting £256 per square foot of floorspace!

Of course that isn't the be-all and end-all, and the lower priced of the two houses has a larger garden and is semi-detached rather than mid-terraced, so it isn't quite a straight fight. Nevertheless, calculating the £ per square feet acts as a guide to confirm my suspicions that this well-presented property in a nice location offers good value for money.

Due in part to its good size, I'd expect it to achieve £1,400pcm in rent, which equates to a decent 4.9% yield (although, again, bear in mind the leasehold costs). Interestingly that's identical to the yield I'd expect from the other three-bedder I compared it to, which is likely to achieve £1,250pcm...which also equates to 4.9%. 

The property is on the market with Cubitt & West and full details can be found on Rightmove via the following link: 

Chichester rental valuation

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