Monday, 7 September 2020

BUY-TO-LET DEAL OF THE WEEK: 2 bed house in Fishbourne, £259,000, 4.5% yield

2 bed house, Mosse Gardens, Fishbourne, Chichester

2 bed house in Fishbourne
Listed for sale on 29/06/20 @ £269,950
Now = £259,000
Rent = £975pcm
Last sold for £191,000 in 2011 (+36% in 9 years)
Yield = 4.5%

There are currently two two-bedroom houses for sale in Mosse Gardens in Fishbourne. Both were originally an identical size and layout internally and yet this one is cheaper (ok, only by £1,000) BUT it also has a conservatory and a garage - which is a real bonus and worth £50pcm additional rent versus a house without.

Originally marketed in June at £269,950, it was reduced to £264,500 in July and has just been reduced to its current asking price of £259,000. Whilst that still doesn't make it a bargain (I'd like to see it at £250,000 for that to be true) it is decent value compared to what else is available, its rental return and previous sales on the street.

It last sold in 2011 for £191,000, meaning achieving the asking price would see a 36% increase in 9 years. Achieving £975pcm rent would now mean a 4.5% rental return, which is decent for a freehold property in good condition when compared to the local average. Two bed houses though, as I have said many times, are in short supply. As such, I believe you can be relatively sure of a continuously strong rental demand from tenants, as well as long-term capital growth for the property itself.

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

Chichester rental valuation

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