Monday 28 September 2020

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Tangmere, £265,000, 4.8% yield

3 bed house in Tangmere
Listed for sale on 07/09/20 @ £295,000
Now = £265,000
Rent = £1,050pcm
Yield = 4.8%
Last sold for £175,000 in 2004 (+51% in 16 years)

This three-bedroom house in Tangmere has been slashed in price by £30,000, less than three weeks after it was first listed. Now priced at £265,000, it appears to be decent value for a good-sized three-bedroom house that, as the agent describes, is "beautifully presented".

The caveat I'd make to that is it doesn't necessarily look that way in the photos (in my opinion - let me know what you think). The 'artistic' front photo is around 60% foliage, 20% sky and 20% house - to me, it makes it look overgrown and unloved. Whereas, in fact, it appears to have been very well looked after, with gas central heating, double glazing, a reasonable kitchen, modern bathroom and crisp décor throughout. Here too though, some of the photos don't do the house justice. Net curtains, pictures cluttering some of the walls and striped wallpaper seem to combine to make the house feel smaller, and less modern, than it really is.

Once the house is emptied of such things though, it will likely look a completely different property; and a far more desirable one, in my opinion. Good sized rooms (although bedrooms two and three are a little smaller than you'd ideally like) with very little improvement works necessary (unless the striped wallpaper really offends you - I think in the flesh it could look good). With the bonus of a garage and being at the end of a cul-de-sac, it should be popular amongst renters, with the two smaller bedrooms providing ample enough space for children's bedrooms and/or offices for working at home (increasingly important!).

It would likely rent for £1,050pcm, which would provide a decent 4.8% rental return from a freehold property that has seen capital growth of 51% in the 16 years since the previous owner bought it for £175,000.

The property is on the market with Henry Adams and full details can be found on Rightmove via the following link:

Chichester rental valuation

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