Chichester Property News: November 2015

Monday, 30 November 2015

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Chichester, £260,000, 4.4% yield

Summary:

3 bed mid-terrace in Chichester
Listed for sale on 13/11/15 @ £275,000
Now £260,000 (5.4% price reduction)
Rent = £950pcm
Yield = 4.4%
Last sold in May 1999 for £117,950 (+120% in 16.5 years)

This three bedroom mid-terrace house is well-positioned just behind St Richards Hospital in Chichester. This means there should be a ready stream of tenants wanting to rent the property, be it for its close proximity to the hospital or Chichester's city centre.

It's been on for sale with Charles Peck for just a couple of weeks and has just been reduced in price by £15,000. With so much equity in the property since the previous owner bought it in 1999 for £117,950 (seeing a whopping 120% gain), there might be a chance to get a good sized freehold property in a great location for a decent price.

There aren't any internal photos (nor any of the garden) so it's hard to see what condition the property is in, but it should be relatively modern, complete with double glazing, gas central heating and an en-suite to the master bedroom. It also benefits from a parking space and a garage and I would expect it to conservatively rent for £950pcm, providing a solid 4.4% rental return from a property that has shown itself capable of excellent capital growth.

Full details can be found on Rightmove via the following link:

http://www.rightmove.co.uk/property-for-sale/property-37789767.html

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If you are looking for an agent that is well-established, professional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.

E-mail me on clive@crjlettings.co.uk or call 01243 624 599.

Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:

Follow The Buy-To-Let Property Investment Market in Chichester

Chichester Property Market LinkedIn Page for Clive Janes

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Chichester Investment Property Management Specialist CRJ Letting Agents Website

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Thursday, 26 November 2015

Which is the most expensive street in Chichester?

The most expensive property on the market in Chichester at the moment is a ten-bedroom detached house in Pine Grove, priced at £2.25m. This got me thinking….which is the most expensive street in Chichester?

Using Zoopla’s property value data and focusing on the PO19 postcode region, it showed that Pine Grove was actually in second place with an average value on the street of £963,760.

The third most expensive street is Brandy Hole Lane, with each of its 42 properties having an average value of £924,351. This would give the whole street a combined value of nearly £40m; something of a bargain when you consider that might get you just one property in London’s Mayfair!

West Broyle Drive and Mill Lane are in fourth and fifth spot respectively (with average values of £890,159 and £860,193).

So, which is the most expensive street in Chichester? That accolade goes to North Pallant, which has just become the first street in Chichester to break through the £1m mark, with each property valued at an average of £1,012,539.

With the average property in Chichester valued at around £350,000, this makes a property on North Pallant nearly three times more expensive than the local average.

There are currently two properties for sale on North Pallant; a 3,881 square foot home priced at £1.7m and a tardis-like 5,591 square foot townhouse priced at £2m.

These hefty price tags still can’t quite match that of a neighbouring property on North Pallant, which I found to be the most expensive residential property ever sold in Chichester. This six-bedroom Grade II listed (most of North Pallant is listed) townhouse sold in November 2013 for £2,185,000 and is estimated to be worth in excess of £2.5m today.

Top 5 most expensive streets in Chichester:

1. North Pallant (£1,012,539)

2. Pine Grove (£963,760)

3. Brandy Hole Lane (£924,351)

4. West Broyle Drive (£890,159)

5. Mill Lane (£860,193)

North Pallant: The most expensive street in Chichester

If you’re interested in keeping up-to-date with Chichester’s property market, you can sign up for my free weekly newsletter at www.tinyurl.com/crjlettingssubscribe.

(This article was featured in the Chichester Observer's property section

on 26th November 2015).

Clive Janes, CRJ Lettings.

www.crjlettings.co.uk

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E-mail me on clive@crjlettings.co.uk or call 01243 624 599.

Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:

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Monday, 23 November 2015

BUY-TO-LET DEAL OF THE WEEK: 2 bed house in Tangmere, £255,000, 4.2% yield

Summary:
2 bed new build house in Tangmere
Listed for sale on 14/10/15 @ £255,000
Rent = £900pcm
Yield = 4.2%

Bader Heights is a new development of 160 homes by Miller Homes off of Meadow Way in Tangmere. It has just been released by Henry Adams for 'early reservation' i.e. off-plan purchases, with none of the homes being built yet (some groundworks have begun).

This particular plot is a two bedroom house, so long-term readers will know I think it fits the bill perfectly as a local buy-to-let property.

Although the £255,000 asking price is some £50,000 more than nearby two-bed houses, the new-build design (complete with two double bedrooms, an en-suite and cloakroom) should continue to hold a premium above the local area (the current housing stock nearby normally has one double and one single bedroom and only the one bathroom for the house). It also appeals to landlords who want a hassle-free purchase with minimal ongoing maintenance and the safety net the various warranties provide.

Whilst it's difficult to value a property before it's even begun being built, with nearby two-bed houses renting for between £800-£850pcm, I would expect an approximate rental figure of around £900pcm, which would provide a 4.2% yield based on paying the full asking price (hint: you shouldn't be paying the full asking price!).

Full details can be found on Rightmove via the following link:

http://www.rightmove.co.uk/new-homes-for-sale/property-55408031.html

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E-mail me on clive@crjlettings.co.uk or call 01243 624 599.

Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:

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Thursday, 19 November 2015

Getting a better deal on new build property

I spoke to someone this week who said a new build property would suit them as it would be “maintenance free”. Whilst this isn’t strictly true as there will invariably be some level of ‘snagging’, a new build will typically have fewer issues than an older property and will come with various warranties.

As he was adamant he only wanted to buy a new build property, we discussed how he might best go about doing this to minimise the premium he might pay versus a comparable second-hand property. Here are four of the ways I came up with to extract the best deal possible when purchasing a new build property.

1. Buy the showhome

Developers normally sell their showhome(s) to investors and lease them back. They normally do so at a discounted price or by enhancing the property with additional fixtures and fittings. They then pay to use the property for the duration of the development, offering an excellent rate of return (around 6%) without you having to worry about maintaining the property nor managing any tenants! At the end of the term the property will come back in an ‘as-new’ condition and you can either let it out, sell it or move into it.

2. Buy early

Builders need cashflow at the start of a development to commence building works. As a result, the first phase of properties tend to offer the best value, often being released before building has started. Buying ‘off-plan’ like this can require some imagination and trust that the builder will deliver (hence the often discounted prices).

3. Buy late

When a development is nearly sold out there will often be a deal to be done on the “last few plots remaining”. At this point the developer wants to move on to their new site and the existence of a sales office and showhome(s) can become a costly expense when there are only a few homes for sale.

4. Buy at the right time of year

There are actually two elements to this suggestion: buy when the market is quieter (e.g. the depths of Winter) and consider the timing of the developers’ financial year. Many developers use April or June as their ‘year-end’ and set sales targets against these deadlines (and six months before at the ‘half-year’ stage).

Here in Chichester, I know that Canal Walk is down to just its last three plots (all four-bed houses) and that their half-year period is coming up. With two of the four potential reasons for a discount, it could be a good time for those looking for a large family home to see what’s on offer.

If you’d like to discuss your options when buying a property, please get in touch and I’ll be happy to offer you a free consultation.

(This article was featured in the Chichester Observer's property section

on 19th November 2015).

Clive Janes, CRJ Lettings.

www.crjlettings.co.uk

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E-mail me on clive@crjlettings.co.uk or call 01243 624 599.

Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:

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Monday, 16 November 2015

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Chichester, £275,000, 4.6% yield

Summary:
3 bed house in Chichester
Listed for sale on 07/08/15 @ £285,000
Now £275,000
Rent = £1,050pcm
Yield = 4.6%

This good size three bed house is in the South of Chichester, near to Whyke Lakes. It has been on the market for three months and has just been reduced in price by £10,000, so a deal may be done on an already attractive asking price of £275,000.

It has a separate dining room and lounge and three bedrooms, of which two are doubles. It has gas central heating and double glazing and whilst the galley kitchen isn't huge, it appears reasonably modern. Strangley there aren't any photos of the 'large garden', but that too would be a bonus for this family home.

A conservative rental figure of £1,050pcm would provide a 4.6% yield from a freehold property in an established part of Chichester that seems to be in a ready to rent condition.

On sale with Cubitt & West, full details can be found via the following link:

http://www.rightmove.co.uk/property-for-sale/property-35803680.html

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E-mail me on clive@crjlettings.co.uk or call 01243 624 599.

Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:

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Thursday, 12 November 2015

A look at Lavant's property market

I was contacted recently by a landlord who was looking to purchase a buy-to-let property and had stumbled upon a three-bedroom house in Lavant that he felt fit the bill. He contacted me to see what I thought of the property and of Lavant in general. This is what I found out for him…

There have only been 14 properties sold in Lavant in the past 12 months, so valuing property there can be a bit of a minefield. It’s even tougher for rental properties, where there is currently only one property to rent in the whole of Lavant!

Not only does this make it difficult to value the property accurately so as to maximise your return without encountering prolonged void periods, it also suggests there’s not much of a rental market in Lavant.

This is backed-up by Census data from 2011, indicating just 6.5% of residents in Lavant privately-rented their home (compared to a healthier 19.4% in Chichester).

With its own primary school, rated as ‘good’ by Ofsted, Lavant is a family-orientated area. This means the type of property the landlord was looking at (a three-bed house) was a good fit for the area compared to, say, a small flat.

This is also proven from a capital growth perspective in the long-term, as flats in Lavant have increased in value an average of 15.2% in the past five years and 256% in the past twenty years. This compares to houses in Lavant, which have increased an even more impressive 18.2% and 288% in value in the past five and twenty years respectively.

One dark cloud hanging over Lavant that could affect this positive uptrend is the risk of an A27 bypass heading North (past Lavant). This would bring with it both noise pollution and the loss of open space that could de-value property in the area.

The three-bedroom house the landlord was interested in was priced at £290,000. If it were to let for the anticipated rental figure of around £1,000pcm, it would generate a 4.1% rental yield. This is a relatively low return compared to many of the properties I feature as my “buy-to-let deal of the week”.

I think there are better areas than Lavant in terms of a rental investment, which could offer a better rate of return alongside a greater number of prospective tenants wanting to rent the property (meaning fewer void periods).

However, for owner-occupiers Lavant is not only a lovely place to live, complete with its own well-regarded school, but has a history of good capital growth.

If you wish to discuss the local property market or would like me to take a look at a specific property you intend to buy for investment, please get in touch.

(This article was featured in the Chichester Observer's property section

on 12th November 2015).

Clive Janes, CRJ Lettings.

www.crjlettings.co.uk

___________________________________

E-mail me on clive@crjlettings.co.uk or call 01243 624 599.

Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:

Follow The Buy-To-Let Property Investment Market in Chichester

Chichester Property Market LinkedIn Page for Clive Janes

CRJ Letting Agents Chichester Facebook Page

CRJ Letting Agents Chichester Twitter Page

Chichester Investment Property Management Specialist CRJ Letting Agents Website

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