BUY-TO-LET DEAL OF THE WEEK: 2 bed house in Fishbourne, £259,000, 4.5% yield

Summary:
2 bed house in Fishbourne
Listed for sale on 29/06/20 @ £269,950
Now = £259,000
Rent = £975pcm
Last sold for £191,000 in 2011 (+36% in 9 years)
Yield = 4.5%

There are currently two two-bedroom houses for sale in Mosse Gardens in Fishbourne. Both were originally an identical size and layout internally and yet this one is cheaper (ok, only by £1,000) BUT it also has a conservatory and a garage - which is a real bonus and worth £50pcm additional rent versus a house without.

Originally marketed in June at £269,950, it was reduced to £264,500 in July and has just been reduced to its current asking price of £259,000. Whilst that still doesn't make it a bargain (I'd like to see it at £250,000 for that to be true) it is decent value compared to what else is available, its rental return and previous sales on the street.

It last sold in 2011 for £191,000, meaning achieving the asking price would see a 36% increase in 9 years. Achieving £975pcm rent would now mean a 4.5% rental return, which is decent for a freehold property in good condition when compared to the local average. Two bed houses though, as I have said many times, are in short supply. As such, I believe you can be relatively sure of a continuously strong rental demand from tenants, as well as long-term capital growth for the property itself.

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-94177655.html

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   crjlettings.co.uk   clive@crjlettings.co.uk  01243 624 599

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BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Fishbourne, £289,950, 4.8% yield

Summary: 3 bed house in Fishbourne Listed for sale on 11/04/19 @ £299,950 Now = £289,950 Rent = £1,150pcm Yield = 4.8% Last sold for £250,000 in 2011 (+20% in 8 years) There's a few very similar three-bedroom houses on this newish estate in Fishbourne currently for sale. That means they're effectively competing for the same buyer, which has led to what I think is the possibility to purchase them at a good price. The cheapest of the three available is this one, priced at £289,950 having been reduced by £10,000 just a few weeks after coming on the market (possibly in reaction to a chunky £25,000 price reduction from another that's been on for a few months, brining it down to the £300k mark). Considering the house is only eight years old (in which time the value has increased just 20% from when the current owner paid £250,000, compared to an average increase locally of 33% in the same timeframe) it remains in very good condition. These houses are modern enough to appeal to young professional tenants, who appreciate a little more space and tranquillity living in Fishbourne versus being closer to Chichester's city centre. Having said that, one downside of these houses is the size of the bedrooms. Having let a few in the past I can tell you this is pretty much the only barrier to renting them out. The downstairs' space is good, kitchens are modern and come with integrated appliances and the houses have gas central heating, double glazing, a cloakroom, family bathroom and en-suite. But the bedroom sizes aren't great - even the master is only a smallish double due to the en-suite eating into the space. The second and third bedrooms aren't really capable of being called a 'double' bedroom; in truth I've seen two-bedroom houses with a larger footprint upstairs than this house. Nevertheless, if you can find someone for which this isn't as important as living on a nice estate, in a nice area and with a good quality home (typically a young professional couple and possibly a young child - no more than that), you should be able to rent it for £1,150pcm. That would equate to a 4.8% rental return, which is strong for a freehold house in such good condition. Even snipping £50pcm off the rent will mean a 4.6% return, which is still good and would then be based on a conservative rental figure. The property is on the market with Sims Williams and full details can be found on Rightmove via the following link: https://www.rightmove.co.uk/property-for-sale/property-71069041.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

The value of local independent businesses

Last week I had a venetian blind in a rental property which had broken. On closer inspection it was just a small mechanism that holds the cord up which had failed. It seemed a shame to throw away a set of perfectly good (and reasonably expensive) blinds for the sake of this tiny part.

At this point I thought to myself - what would a high street letting agent do? I suspect they would get a handyman round to replace the blind, which is perfectly reasonable. It would cost the landlord money but as the letting agent isn’t paying (and may actually be adding on a ‘commission’ for organising the works), would they care?

As an independent letting agent who likes to be a little more pro-active, I approached the situation differently; spending a little of my time to try and save the landlord some money.

I took the offending blind to Falcon Fabrics on the Portfield Trading Estate in Chichester (right next to the Bognor Road roundabout). I showed one of the two Nigel’s (the owners of this independent business) the blind and was told that unfortunately the rather innocuous looking part, which had broken, isn’t sold separately.

Undeterred though, Nigel went out the back and found the required spare part for me to pass on to my handyman…free of charge! Can you imagine one of the big chain stores going to such lengths?

Many independent companies are started by passionate individuals who continue to take an active and personal interest in all activities within the business. There is normally a strong belief that they can better serve their chosen industry than the often bigger and less hands-on competition.

As an independent letting agent, I’m proud not only to have helped my own landlords and tenants, but to have assisted many more who aren’t even customers of mine.

I’ve guided first-time landlords towards properties that offer them a better return. I’ve saved landlords time and money by giving them the details of my trusted tradesmen when they needed to refurbish a property. I’ve even helped landlords who are stuck in a contract with another letting agent who choose to ask me for lettings advice!

I’m happy to do all of the above because I believe people deserve great service. It’s something many independent businesses strive for and I think it would be a shame if we didn’t support them more.

(This article was featured in the Chichester Observer's property section on 6th July 2017) 

Clive Janes, CRJ Lettings.

www.crjlettings.co.uk

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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

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

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BUY-TO-LET DEAL OF THE WEEK: 2 bedroom house in Fishbourne, £285,000, 4.1% yield

Summary: 2 bedroom semi-detached house in Fishbourne Listed for sale on 08/05/17 @ £285,000 Rent = £975pcm Yield = 4.1%

I visited the show home at Acorn Grove in Fishbourne to see how the development of 24 homes was going. Rather well it turns out, as they were all sold, except for the just released soon to be ex-show home and ex-sales office, which are both two bedroom semi-detached houses. Asking prices were due to be released imminently but it should be £285,000 for the ex-sales office and £295,000 for the ex-show home (which features some specification upgrades & furnishings). That seemed pretty reasonable to me, considering a second-hand two bedroom house on the next door development (The Oaks) has just sold within a week of being marketed at £289,950. Considering you could get a brand new property, complete with warranty, for £5,000 less, that seemed worth investigating further. One snag is that there're unlikely to be available until November, as they are still being used for the marketing of Taylor Wimpey's Hambrook site, but that means you can lock in a purchase at today's price for six month's time (which could be a good or bad thing depending on how house prices develop I suppose). They are obviously immaculately-presented houses, which will appeal to discerning tenants. They have a good layout, even managing to fit an en-suite into the master bedroom. The bedrooms aren't huge, but then that's true of most new-builds nowadays and something I think future generations will get used to and accept as 'normal'. The house overall is 673 square feet, which is quite a bit smaller than the recently sold one I mentioned (795 square feet but without an en-suite). It also forgoes a garage, again like most newer build plots (particularly two bedroom homes) but gets two allocated parking spaces, which is good. Some people think buying new-build homes is a bad idea as you are overpaying to cover the developer's premium. Like a new car, as soon as someone uses it it is no longer new and thus loses some value. For many though, who want the assurances a new-build provides, it makes a very simple buy-to-let purchase whereby there is nothing to do and tenants can move-in from day one, safe in the knowledge that any maintenance issues for the next couple of years will be covered by the builder. The fact it generates a decent yield in a popular area I often cite as being a great place to live, buy and invest in and I think it stacks up as a good buy-to-let prospect. If that sounds like something worth paying a little extra for compared to some older homes, visit the sales office at Acorn Grove and take a look at what I think is a pleasant development in a great location, just on the outskirts of Chichester. It is on the market with Taylor Wimpey and full details can be found on Rightmove via the following link: http://www.rightmove.co.uk/property-for-sale/property-48503070.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 __________________________________

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Fishbourne, £310,000, 4.5% yield

Summary: 3 bed house in Fishbourne Listed for sale on 16/01/17 @ £310,000 Rent = £1,150pcm Yield = 4.5%

New to the market this week is a three bedroom house in Fishbourne. Longer term readers will know I like Fishbourne as an area and have posted a few similar houses as previous buy-to-let deals of the week. A couple of years ago I posted a three bedroom house nearly identical to this one, which at the time (February 2015) was being advertised for £275,000. With today's property being listed at a still realistic £310,000 (only £13,000 more than a nearby two bed house) that represents an increase of 13% in a couple of years compared to the nearby house. Interestingly the £275k property was withdrawn from the market (perhaps they realised it was underpriced) and relisted a year later for £295,000. It shows there has been a steady increase in the value of properties such as these and I expect this to continue, particularly as Fishbourne is unaffected (and may even benefit from) the uncertainty surrounding the A27. It is also interesting to note that two years ago I suggested a rental figure of £1,050pcm, whereas now I would expect to achieve £1,150pcm. That means that even though the price has increased £35,000 in two years, the yield is virtually the same. Unfortunately you'll now have the 3% extra stamp duty to pay of course! Modern family houses in this area rent well due to their contemporary kitchen and bathrooms, en-suite to the master bedroom and the bonus of a garage. It has the almost to be expected double glazing and gas central heating and being just five years old should be relatively maintenance free for the foreseeable future. It is on the market with Treagust & Co and full details can be found on Rightmove via the following link: http://www.rightmove.co.uk/property-for-sale/property-46381869.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 __________________________________

BUY-TO-LET DEAL OF THE WEEK: 2 bed house in Fishbourne, £234,950, 4.6% yield

Summary: 2 bed house in Fishbourne Listed for sale on 15/09/16 @ £234,950 Rent = £895pcm Yield = 4.6% Last sold for £195,000 in August 2007 (+20.5% in 9 years)

New to the market this week is this good-sized two (double) bedroom house in Fishbourne; a popular area just to the West of Chichester. At £234,950 it is well-priced, considering similar houses have been advertised around the £250,000 mark recently. It could, however, need some money spent on updating it a little, with the decor and kitchen needing a lift. The bathroom isn't photographed, so that may be because it also needs replacing. The details don't make it clear whether the house has double glazing, which would be another expensive item to install to bring it up to excellent modern standards. It does have gas central heating throughout though. Two bedroom houses are always desirable and quick to let. This house should achieve £895pcm once in a tip-top condition and I believe would see solid capital growth in the future (it last sold for £195,000, close to the peak of the market in August 2007, and so has increased a little over 20% since then). It is definitely worth a viewing to assess what work needs doing to bring what would be a great long-term addition to any portfolio up to scratch. It is on the market with Charles Peck and full details can be found on Rightmove via the following link: http://www.rightmove.co.uk/property-for-sale/property-61934222.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 __________________________________

How useful is ‘£ per square foot’ when buying property?

I was chatting with a landlord who had read my article asking "How expensive is Chichester property?". He commented that whilst he found the £ per square foot data interesting, he didn’t think it was of any real use.

I’m afraid I had to disagree!

In fact, £ per square foot is one of the metrics I always calculate when analysing a potential property purchase (property price divided by total square footage of the property).

It can be a good gauge as to how much you should be paying for a particular property, as well as being a good comparison of different areas. For example, I often say I like Fishbourne, Tangmere and Westhampnett as they are popular amongst renters and offer a little more ‘bricks for your buck’ than Chichester.

This is shown in the average £ per square foot paid for a house in each area: Chichester costs £336 per square foot, Fishbourne £309, Tangmere £295 and Westhampnett £318.

However, what is of even more use is when comparing properties near to one another. For example, I was recently tasked with finding a modern three bed house in Fishbourne. There were three available at the time, all within 200 yards of one another and each of a similar age and specification. They were priced at £289,950, £315,000 and £325,000.

Seems pretty obvious which one to plump for right? This is where my trusty £ per square foot calculation came in handy.

The three bed house at £289,950 was set over two storeys and had a footprint of 887 square feet, meaning it cost £327 per square foot.

The three bed house at £315,000 was also the traditional two storeys high, but had a far greater footprint of 1,125 square feet, meaning it cost just £280 per square foot.

Even better value was found from the most expensive three bed house though. Set over three storeys it had an impressive 1,315 square feet; meaning you were paying just £247 per square foot.

Whilst the rental figure may only be around £150 a month more for the extra 433 square feet of space (meaning the gross rental yield is comparable) I am confident as to which property will be the more appealing to prospective tenants and thus let quicker.

If you are thinking of buying a rental property and would like me to crunch the numbers on it to ensure you are maximising your investment, please get in touch.

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

on 11th February 2016).

Clive Janes, CRJ Lettings.  

www.crjlettings.co.uk

___________________________________

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

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