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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Is Bosham best for buy-to-let?

I read an interesting article from last month’s Telegraph recently, announcing Bosham as one of the top 20 places to invest in property outside of London.

This was based on the staggering capital growth the area has seen, as the lack of available land provides exclusivity and thus premium prices for property in the area. It was also suggested that as Bosham is less well-known then other respected coastal areas, such as Sandbanks, prices could still have further to run.

When we look at property on Shore Road for instance, a four/five bedroom detached house could have been bought for £450,000 back in 1990. By 1996 these properties had broken the £1 million mark and today they would be in excess of £4 million.

And Shore Road is only the third most expensive street in Bosham, with an average value of £1.45m. In second spot is Smugglers Lane (£1.64m) whilst Bosham’s most expensive street is Bosham Hoe, with the value of each home averaging £1.89m.

There are slightly more affordable properties in Bosham than this of course, although with an average price of £536,720 Bosham is significantly more expensive than the average price in nearby Chichester (£376,500) and Fishbourne (£355,358). Bosham is however trumped by West Wittering in this regard, whose prestigious waterside properties have helped reach an average sale price over the past year of £595,533.

The housing mix in Bosham is largely skewed towards family houses rather than flats, with 1,684 of the 1,833 properties in Bosham being houses (92%) as of the 2011 Census.

Census data also shows Bosham as having a relatively ‘mature’ population, slightly more so even than nearby Chichester. In Bosham the average resident is 47 years of age, compared to 44 in Chichester and 40 across England and Wales.

The older age profile of Bosham’s residents perhaps explains why 47% are mortgage-free, compared to 41% in Chichester and 31% throughout England and Wales.

An important housing statistic to point out - and this is where the investment case starts to fall down a little - is that there aren’t relatively many rental properties in Bosham. Just 23% of homes in Bosham were rented in 2011, compared to 36% nationally. I was surprised it was as high as 23% to be honest, considering there are just four homes in Bosham available to rent on Rightmove as I write this.

Let us take a closer look at the only one of those four properties that is actually let agreed - a two bedroom end of terrace house let for £900pcm. It would likely sell in the region of £300,000; equating to a pretty poor 3.6% rental return.

And for me this is where Bosham falls down as being a top place for buy-to-let; rental returns are too low because property prices are high, whilst this isn’t reflected in premium rents as the tenant demand isn’t strong enough. Whilst Bosham is undoubtedly a wonderful place to live and I’ve no doubt property prices will continue to outperform the market, for me it is an area to buy and live, rather than buy to let.

If you’re considering investing in a buy-to-let property and would like to discuss the different local housing markets to evaluate which best suits your investment criteria, please get in touch.

(This article was featured in the Chichester Observer's property section on 23rd March 2017) 


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

c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP

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