Monday, 19 April 2021

BUY-TO-LET DEAL OF THE WEEK: 2 bed house in Chichester, £259,950, 4.5% yield



Summary:
2 bed house in Chichester
Listed for sale on 19/03/21 @ £270,000
Now = £259,950
Rent = £975pcm
Yield = 4.5%
Last sold for £180,000 in July 2009 (+44% in 12 years)


Having been marketed for just a few weeks, this two-bedroom house on the East-side of Chichester has just been reduced in price by a little over £10,000. It's new asking price is £259,950, which is just £950 more than the cheapest freehold house in the whole of Chichester - but this one comes with a garage, which I think makes it the better buy overall of the two.

Located on the Arundel Park estate, these houses are always popular with young professionals, young families and older couples too. In fact their decent size makes them flexible for a wide range of tenants, which helps underpin its desirability and rental value. It's presented in reasonable order, but it could perhaps do with a few cosmetic tweaks. Nevertheless it would still rent (everything in Chichester is flying off the shelf at the moment!) and would do so for around £975pcm. That would provide a decent 4.5% rental return based on paying the full asking price.

The current owner bought the property in 2009 for £180,000, so it has risen a decent 44% in the 12 years they have owned it. Then again, its history highlights the huge increase in property prices in the run up to this, having sold for just £56,500 in 1997 i.e. a meteoric rise of 219% in the 12 years previous (between 1997-2009)!

The property is on the market with Henry Adams and full details can be found on Rightmove via the following link: www.rightmove.co.uk/properties/104320433






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