Summary: 2 bed house in Tangmere Listed for sale on 06/11/20 @ £260,000 Rent = £1,000pcm Yield = 4.6% Last sold for £249,950 in 2016 (+4% in 4 years)
My last buy-to-let deal was also a two-bedroom house in Tangmere. This one, however, is on a new(ish) estate in Tangmere, having been built in 2016. That means it is in great condition throughout with modern fittings and amenities you don't get with all of the older properties (such as a downstairs cloakroom and en-suite shower room). This makes it more desirable than the older properties and yet it is priced only £10,000 more than it's older counterpart.
What's interesting to note is that I used to say the older-built properties were often better value. If you look back to 2016, when this property was built, it sold for £249,950. It is now available for £260,000; which is a mere 4% increase in four years. Yet the older two-bedroom house in Tangmere I highlighted last time (currently available for £250,000) also sold in 2016...for £209,950. That means there was around a 20% premium on the new-builds just four years ago, whereas now the premium is a mere 4%...it seems I was quite right to suggest buying the older stock back then!
Now though, that argument is reversed (at least at current asking prices). When it doesn't cost much more to buy a nearly new property than it does one that is 30+ years old, it seems clear to me where you should put your money. Tenants will typically feel the same too, opting for the newer property and justifiably paying a (small) premium to do so. I believe with the current strong demand and low supply that £1,000pcm is attainable for this property, which would produce a solid 4.6% from a new(ish) freehold property in a continuingly attractive and growing village (Tangmere).
The property is on the market with Bell & Blake and full details can be found on Rightmove via the following link:
Summary: 2 bed house in Tangmere Listed for sale on 29/08/20 @ £259,950 Now = £250,000 Rent = £950pcm Yield = 4.6% Last sold for £209,950 in 2016 (+19% in 4 years)
Highlighting a two-bedroom house in Tangmere as a buy-to-let deal is not uncommon for me. What is uncommon is highlighting one that isn't particularly cheap. The reason for that though is it is in truly fantastic condition. It is a very good example of how to modernise a house - nothing too flashy or outlandish, just simple, neutral spec to provide a really great end product.
Ordinarily I'd rather highlight the same house down the road for £25,000 less and then suggest you update it to create a great end product like this. But, many landlords don't want a project, nor the lack of income for several months whilst the property undergoes its makeover. For landlords like that, this house could be a great buy.
The fundamentals are all there; two bedroom houses are in short supply, yet remain ever-popular and in demand. Tangmere continues to be a good hunting ground to find tenants and this particular house should have no problem standing out due to its great condition. It also has gas central heating and double glazing alongside the modern kitchen & bathroom, plus a conservatory and a garage.
It should therefore rent at £950pcm, which is relatively high for a two-bedroom house of its age and location, but is justified by all the good qualities it possesses. This includes two double bedrooms, which will also help widen the scope of who might want to rent it from a young couple / family to two sharers not having to fight over the bigger bedroom.
The property is on the market with Sims Williams and full details can be found on Rightmove via the following link:
