Chichester Property News: canal walk chichester

Showing posts with label canal walk chichester. Show all posts

Thursday, 19 November 2015

Getting a better deal on new build property

I spoke to someone this week who said a new build property would suit them as it would be “maintenance free”. Whilst this isn’t strictly true as there will invariably be some level of ‘snagging’, a new build will typically have fewer issues than an older property and will come with various warranties.

As he was adamant he only wanted to buy a new build property, we discussed how he might best go about doing this to minimise the premium he might pay versus a comparable second-hand property. Here are four of the ways I came up with to extract the best deal possible when purchasing a new build property.

1. Buy the showhome

Developers normally sell their showhome(s) to investors and lease them back. They normally do so at a discounted price or by enhancing the property with additional fixtures and fittings. They then pay to use the property for the duration of the development, offering an excellent rate of return (around 6%) without you having to worry about maintaining the property nor managing any tenants! At the end of the term the property will come back in an ‘as-new’ condition and you can either let it out, sell it or move into it.

2. Buy early

Builders need cashflow at the start of a development to commence building works. As a result, the first phase of properties tend to offer the best value, often being released before building has started. Buying ‘off-plan’ like this can require some imagination and trust that the builder will deliver (hence the often discounted prices).

3. Buy late

When a development is nearly sold out there will often be a deal to be done on the “last few plots remaining”. At this point the developer wants to move on to their new site and the existence of a sales office and showhome(s) can become a costly expense when there are only a few homes for sale.

4. Buy at the right time of year

There are actually two elements to this suggestion: buy when the market is quieter (e.g. the depths of Winter) and consider the timing of the developers’ financial year. Many developers use April or June as their ‘year-end’ and set sales targets against these deadlines (and six months before at the ‘half-year’ stage).

Here in Chichester, I know that Canal Walk is down to just its last three plots (all four-bed houses) and that their half-year period is coming up. With two of the four potential reasons for a discount, it could be a good time for those looking for a large family home to see what’s on offer.

If you’d like to discuss your options when buying a property, please get in touch and I’ll be happy to offer you a free consultation.

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

on 19th November 2015).

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.

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Monday, 5 October 2015

BUY-TO-LET DEAL OF THE WEEK: 2 bed house in Chichester, £250,000, 4.3% yield

Summary:
2 bed mid-terrace house in Chichester
Listed for sale on 18/08/15 @ £250,000
Rent = £900pcm
Yield = 4.3%
Last sold in February 2003 for £112,500 (+122% in 12.5 years)

Following on from last week's article ("Where have Chichester's two-bed houses gone?") here is the cheapest two-bed house in Chichester, priced at £250,000.

It seems rather compact although being spread over three floors it actually has two double bedrooms and a well-equipped kitchen / lounge for a total of 731 square feet of space. The house is in good condition throughout so would be ready to rent and due to it's prime position in the city centre (complete with garage and parking) should achieve around £900pcm. This would provide a reasonable 4.3% yield from a freehold period property in Chichester's city centre, which has excellent scope for capital growth, as proven historically having increased 122% in the past 12.5 years.

Full details can be found on Rightmove via the following link:

http://www.rightmove.co.uk/property-for-sale/property-35947212.html

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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:

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Monday, 22 June 2015

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Canal Walk, £332,000, 4.3% yield

It makes sense after last week's article to show an example of a Canal Walk property and how it might work as a buy-to-let.

It won't be for everyone, as you can get better yields elsewhere and similar sized properties for 10-20% less money.

However, as per the article, I think Canal Walk will stand up very well in the future as a uniquely spacious modern housing development, which should give good potential for capital growth.

It also comes with the hassle-free factor of having a brand new property, which is ready to rent immediately. Not only do you get the standard 10 year building guarantee as with most new homes, but Barratts (the developer) also give a 5 year warranty, which covers all the appliances and boiler. That's alot of peace of mind and assurity that you won't be spending large sums of money on maintenance for the forseeable future.

Rents of 3 bed houses have edged up a little since I wrote the article (suggesting £1,150pcm rental) and I think due to Canal Walks 'premium' feel, that a 3 bed semi on the development should now achieve a rent of £1,200pcm. That would provide a decent 4.3% yield considering the benefits I've listed above.

Full details can be found on Rightmove via the following link:
http://www.rightmove.co.uk/new-homes-for-sale/property-34896132.html

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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:

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

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Thursday, 18 June 2015

Is Canal Walk Chichester's best new-build development?

After last week’s article about new-build property versus older property, I received several e-mails asking me which local new-build development I felt was the best.

Developers are often accused of creating modern-day ‘rabbit-hutches’ as they look to maximise their use of land; complete with more townhouses blocking out the light, smaller gardens and limited parking.

A study from the University of Cambridge last year concluded that the U.K is building the smallest new-build homes in Europe. An average floor space of 76 square meters (818 square feet) is 45% less than in Denmark, whose new homes average 137 square meters (1,475 square feet).

In contrast to this norm is Canal Walk in Donnington. There are no apartments nor rows of terraced houses as favoured on other new-build sites. 97% of the 116 homes (far fewer than could have been squeezed in) are either detached or semi-detached houses. They are all the standard two-storeys high and each has a driveway and/or garage so cars aren’t littering the estate.

This gives a real sense of space that you don’t often get with modern new-build developments. The main site is surrounded by greenery and, once finished, will lead directly onto the canal’s towpath for a short pleasant walk into Chichester’s City centre.

The quality of the estate does, however, seem to be reflected in the popularity and pricing of Canal Walk. With over 85% already sold, there are simply no two beds available anymore and only a handful of three bedroom houses (starting from £332,000). Larger detached four/five bedroom houses start at £505,000.

I’ve spoken positively about Stockbridge / Donnington many times. It offers more ‘bricks for your buck’ compared to ‘central Chichester’, yet has immediate access on to the A27 and is actually closer to Chichester’s City centre than some of the more illustrious parts of Chichester, such as Summersdale.

With rental values at Canal Walk of around £1,150pcm for a three bed offering a 4.2% yield, and £1,600pcm for a four/five bed producing a 3.8% yield, the estate doesn’t look like a sensible investment at first glance.

Whilst I agree it’s not an obvious site for buy-to-let (it has appealed more to owner-occupiers), for those who wish to park a larger sum of money into a new-build property (complete with five year warranty on all fixtures and fittings) it does start to make sense.

Due to how nicely the houses have been built and the development laid out, I believe Canal Walk will compare well to other new-build estates in years to come, resulting in favourable capital growth.

This is already evident in how well the site has sold, along with price increases of around 10% since they were first marketed in Autumn 2013.

With Chichester’s local plan being agreed, whereby we can expect over 7,000 new homes to be built by 2029, it would be nice if developers designed estates more like Canal Walk than some of the cramped developments springing up elsewhere. If they don’t, Canal Walk really will stand out as the best new-build development in Chichester.

(This article was featured in the Chichester Observer's property section on 18th June 2015)

Clive Janes, CRJ Lettings. www.crjlettings.co.uk

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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:

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

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