Monday, 3 May 2021

BUY-TO-LET DEAL OF THE WEEK: 2 bed house in Chichester, £250,000, 4.7% yield


Summary:
2 bed house in Chichester
Listed for sale on 03/02/21 @ £280,000
Now = £250,000
Rent = £975pcm
Yield = 4.7%
Last sold for £225,000 in 2017 (+11% in 4 years)

There are very few properties currently on the market in and around Chichester that I would deem a 'bargain' or worthy of investing in currently. The market is hot, prices are up and are being further inflated by estate agents...and then sold! I have a few investors who have contacted me recently and we have had exactly this discussion - if you want to buy now, fine (it's normally best to "buy property and wait" as opposed to "wait to buy property"), but, personally, I would wait for the occasional gem that comes to the market that offers great value.

I believe this two-bedroom house, however, is one of those rare gems!

Keen Chichester Property News readers will note I highlighted it as a 'buy-to-let deal of the week' when it was first listed in February at £280,000. It was subsequently reduced to £270,000 and just this week has been reduced to £250,000. My original write-up (see here) said it was a good house but that it wasn't a bargain...but now I think it's very close to being so. It's the cheapest two-bedroom house in Chichester (a good start) and is now just 11% more than the current owner paid four years. It's projected rental value of £975pcm will provide a decent 4.7% rental yield based on the full asking price, which is decent for a freehold property in the area. As my recent market statistics show, two-bed houses are in short supply and rents are increasing as a result.

Per my last write-up of the house, it is in a popular area that I believe will continue to attract buyers and tenants alike for it's relatively quiet setting, close to the South side of Chichester, which will (one day) be improved by the Southern gateway development. It has two double bedrooms, which makes it suitable for a wider variety of tenants compared to those with one double and one single bedroom. It seems to be in nice condition throughout, with double glazing and gas central heating, so it should be ready to rent straight away rather than requiring extensive refurbishment works first.

The property is on the market with Cubitt & West and full details can be found on Rightmove via the following link: https://www.rightmove.co.uk/properties/102439622






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