BUY-TO-LET DEAL OF THE WEEK: 1 bed flat in Tangmere, £150,000, 6.0% yield

Summary:
1 bed flat in Tangmere
Listed for sale on 10/03/20 @ £180,000
Now = £150,000
Rent = £750pcm
Yield = 6.0%
Last sold for £124,950 in 2016 (+20% in 4 years)

This one-bed flat in Tangmere could be a sound entry-level buy-to-let property (yes, £150,000 is 'entry-level' for the local area).

It's been modernised by the current owner, so there is nothing that appears in need of upgrading prior to letting it to tenants. It has a good-sized open-plan living area with a modern kitchen and neutral decor. There's then a double bedroom and a family bathroom. Bonuses include an upgraded heating system (albeit it's all electric rather than gas), double glazing throughout and a garage in a nearby block.

Although it's a flat, it has a long (155 year) lease and minimal ground rent and maintenance obligations. That means nearly all of the £750pcm rent I'd expect to achieve for the well-presented apartment isn't lost to the freeholder.

That's a very decent 6% rental return based on the current £150,000 asking price; an asking price that has been reduced by £30,000 since it was first listed in March. The current owner bought it for £124,950 in 2016, but it seems the bulk of that 20% increase in four years has been spent on the flat itself, rather than acting as profit for the current owner.

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

https://www.rightmove.co.uk/property-for-sale/property-68979156.html

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BUY-TO-LET DEAL OF THE WEEK: 1 bed flat in Tangmere, £159,950, 5.8% yield

Summary: 1 bed flat in Tangmere Listed for sale on 20/03/20 @ £170,000 Now = £159,950 Rent = £775pcm Yield = 5.8% Last sold for £108,000 in 2013 (+48% in 7 years) As an entry-level buy-to-let property in the Chichester area, I think this one-bedroom apartment in nearby Tangmere fits the bill perfectly. It is now priced at £159,950, having just been reduced from £170,000 after a few months on the market (albeit that included prime 'lock-down' months). As flats go, this one includes its own entrance and a garden, so it doesn't lose out on the features often associated with houses. Furthermore it is in excellent condition, having been refurbished by the current owner, including a new kitchen, bathroom and decor. There is also gas central heating (many in the area are still all-electric) and double glazing. It even has a garage! This all means it is in a ready to rent condition, so could make a good first step into the world of buy-to-let. It also side-steps a few other negatives typically found with flats i.e. the leasehold element. With a 155 year lease, no maintenance charge and a peppercorn ground rent, there aren't the typical ongoing costs you'd associate with flats - although be sure to check whose responsibility the building maintenance falls to. In regards to returns - due to its great condition yet low price, the return on offer at 5.8% is very good for the area. That's based on a total rent of £775pcm, for which the garage contributes £50pcm (a bonus that is often overlooked by agents and investors alike). It's interesting to see the flat has been sold many times over the years. It also gives a fascinating insight into how property prices have increased over time. The current owner paid £108,000 in 2013, so is seeking a potential 48% gain in seven years (although bear in mind the money spent on refurbishing it). The owner before that stands as a reminder that property isn't a one-way bet, having paid £115,000 in 2006 and thus losing money in their seven years of ownership! And finally, if you needed reminding how strong house price growth was in the early 2000's, consider the flat sold for less than half that price seven years before (£52,000 in 1999). The property is on the market with Bell & Blake and full details can be found on Rightmove via the following link:  https://www.rightmove.co.uk/property-for-sale/property-90680294.html

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 CRJ Letting Agents Chichester Facebook Page CRJ Letting Agents Chichester Twitter Page Chichester Investment Property Management Specialist CRJ Letting Agents Website c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP