Showing posts with label investment. Show all posts
Showing posts with label investment. Show all posts

Thursday, 29 August 2024

Is a ground floor flat a good buy?

 

Which floor a flat is on is an important factor when deciding what to buy (or rent). Some are ardent in their opinion that an upper-floor flat is the only way to go, whilst others can see plenty of benefits in keeping your feet on the ground. Typically, top floor flats have achieved a premium price over their ground floor counterparts, but is this justified?

Many will say it is and that flats on the ground floor represent both a privacy and security risk. In theory that is true; people walking past will be able to see into a ground floor flat rather than one higher up. And it’s easier to hop through an open window or break the glass of one on the ground floor than if you’d need a ladder to do so. But the same could be said for any house that isn’t built on stilts, so that logic doesn’t really cut the mustard in my opinion.

Certainly the view can be better in a flat on a higher floor and they tend to be brighter too. Plus, heat rises, so they are often easier and cheaper to heat in the Winter. I think there’s still something of a ‘status’ about being higher up in the sky though (think top floor penthouses), which largely clouds people’s opinions on the matter. Having said that, there’s definitely something to be said for only having neighbours below you, compared to ground floor flats, which in a poorly insulated building can mean hearing ‘footsteps on the ceiling’.

Ground floor flats though make perfect sense for those wishing to avoid the stairs. Whilst many immediately think of the elderly in this regard, the benefit is also there for young families with pushchairs and people with mobility issues. They’re also easier to evacuate for the safety conscious and you won’t have to worry about leaking roofs (although they’re the first ones to feel the impact of rising damp or drainage problems).

But the real bonus of having a ground floor flat is that many come with their own private garden or direct access to communal grounds. Apart from the obvious benefit this provides, which came to the fore as we were stuck at home during the pandemic, it can also make ground floor flats suitable for pet owners compared to their more penned-in upper-floor flat counterparts (although you’ll need to check the head lease to ensure pets are allowed at all).

I have long argued that houses are more popular than flats with both owner-occupiers and tenants. This is because they come with their own entrance, private outdoor space and, normally, better parking. But I’ve visited many ground floor flats that also come with these benefits and it’s not surprising that demand for these are holding up noticeably better at the moment compared to flats without these bonuses.

So for me, a ground floor flat that provides access onto its own outdoor space could be a winner; particularly with an aging population that values their own private space. This is a good way of getting many of the benefits associated with a house, but with a lower price tag.








Thursday, 30 March 2023

Is Chichester or Bognor Regis best for buy-to-let?


I was recently called by a husband and wife who were considering buying a rental property for the first time. I was happy to give my thoughts on the market, for which one of the first things they asked was where they should buy. 

Whilst my typical answer to this is “it depends”, it is true that I am an advocate of buying locally to where you live; for both ease of management and for being able to use your local knowledge of the property market to avoid buying a dud. With this in mind, their next question was which area was best locally; Chichester or Bognor Regis?


Whilst the average property in Chichester costs £472,708, in Bognor Regis the average home is a more ‘affordable’ £370,580. Isn’t it amazing that a fifteen-minute journey down the A259 could save you 22% off the price of a home!

With the average rent in Chichester standing at £1,295 per month, property is also more ‘affordable’ for tenants in Bognor Regis; which has an average rent of £1,100 per month.

The above figures translate into a projected average yield of 3.3% in Chichester and 3.6% in Bognor Regis. Both these figures seem rather low though, as rental properties tend to be purchased towards the lower end of the market, so you can expect a slightly higher return than this. The logic holds though: property in Bognor Regis will require less money upfront and provide a better rental return than property in Chichester. However, it’s not all about the yield when investing in property; next we should look at the increase in property prices over time from both areas.

In this case, Chichester was the winner up until the pandemic. Before then, whether it was in the short, medium or long-term, property prices in Chichester generally rose by a greater amount than in Bognor Regis. 

That’s why I often say if you’re looking for consistently-proven strong capital growth, Chichester is great; whereas if you’re seeking income immediately from your property, it could be wise to look towards Bognor Regis.

As mentioned though, since the pandemic something strange has happened. Whilst property prices have increased a solid 23% in Chichester since March 2020, they have leapt by nearly a third in Bognor Regis! Could the tide be turning towards Bognor Regis, or have prices there got a little carried away since the ‘pandemic property boom’?

The above shows how important it is to consider all the facts and figures available to you when planning to invest in property. A key factor in deciding where to invest though will be what you want to achieve i.e. a better rental income now, or more proven capital growth in the long run (as sensible landlords know that, unfortunately, it’s rare to find both). 


If you’re thinking of buying a rental property and would like some impartial advice as to which area and property might suit you best, please give me a call and I’ll be happy to give you a free initial buy-to-let investment consultation.  

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If you are looking for an agent that is well establishedprofessional 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:

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



Chichester rental valuation

Monday, 9 January 2023

Monday, 26 December 2022

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Chichester, £385,000, 4.7% yield



Summary
3 bed house in Chichester
Listed for sale on 16/12/22 @ £385,000
Rent = £1,500pcm
Yield = 4.7%

The property is on the market with Bellway Homes and full details can be found on Rightmove via the following link: www.rightmove.co.uk/properties/130059656






Monday, 12 December 2022

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Fishbourne, £275,000, 5.2% yield


Summary
3 bed house in Fishbourne
Listed for sale on 26/08/22 @ £325,000
Now = £275,000
Rent = £1,200pcm
Yield = 5.2%

The property is on the market with Hawkins and Smith and full details can be found on Rightmove via the following link: www.rightmove.co.uk/properties/126430298






Monday, 28 November 2022

BUY-TO-LET DEAL OF THE WEEK:4 bed house in Chichester, £415,000, 4.6% yield

Summary
4 bed house in Chichester
Listed for sale on 15/11/22 @ £415,000
Rent = £1,600pcm
Yield = 4.6%

The property is on the market with White & Brooks and full details can be found on Rightmove via the following link: www.rightmove.co.uk/properties/129106523






Monday, 31 October 2022

BUY-TO-LET DEAL OF THE WEEK: 2 bed house in Chichester, £225,000, 5.9% yield


Summary
2 bed house in Chichester
Listed for sale on 25/10/22 @ £225,000
Rent = £1,100pcm (REQUIRES REFURBISHMENT)
Yield = 5.9%

The property is on the market with Leaders and full details can be found on Rightmove via the following link: www.rightmove.co.uk/properties/128389232






Monday, 17 October 2022

BUY-TO-LET DEAL OF THE WEEK:3 bed house in Chichester, £275,000, 5.2% yield



Summary
3 bed house in Chichester
Listed for sale on 10/10/22 @ £275,000
Rent = £1,200pcm
Yield = 5.2%
Last sold for £220,000 in 2015 (+25% in 7 years)

The property is on the market with Bell & Blake and full details can be found on Rightmove via the following link: www.rightmove.co.uk/properties/127921706






Monday, 3 October 2022

BUY-TO-LET DEAL OF THE WEEK: 2 bed flat in Chichester, £235,000, 5.1% yield


Summary
2 bed flat in Chichester
Listed for sale on 27/09/22 @ £235,000
Rent = £1,000pcm
Yield = 5.1%

The property is on the market with Bell & Blake and full details can be found on Rightmove via the following link: www.rightmove.co.uk/properties/127456253






Thursday, 29 September 2022

Is a ground floor flat a good buy?

 

Which floor a flat is on is an important factor when deciding what to buy (or rent). Some are ardent in their opinion that an upper-floor flat is the only way to go, whilst others can see plenty of benefits in keeping your feet on the ground. Typically, top floor flats have achieved a premium price over their ground floor counterparts, but is this justified?

Many will say it is and that flats on the ground floor represent both a privacy and security risk. In theory that is true; people walking past will be able to see into a ground floor flat rather than one higher up. And it’s easier to hop through an open window or break the glass of one on the ground floor than if you’d need a ladder to do so. But the same could be said for any house that isn’t built on stilts, so that logic doesn’t really cut the mustard in my opinion.

Certainly the view can be better in a flat on a higher floor and they tend to be brighter too. Plus, heat rises, so they are often easier and cheaper to heat in the Winter. I think there’s still something of a ‘status’ about being higher up in the sky though (think top floor penthouses), which largely clouds people’s opinions on the matter. Having said that, there’s definitely something to be said for only having neighbours below you, compared to ground floor flats, which in a poorly insulated building can mean hearing ‘footsteps on the ceiling’.

Ground floor flats though make perfect sense for those wishing to avoid the stairs. Whilst many immediately think of the elderly in this regard, the benefit is also there for young families with pushchairs and people with mobility issues. They’re also easier to evacuate for the safety conscious and you won’t have to worry about leaking roofs (although they’re the first ones to feel the impact of rising damp or drainage problems).

But the real bonus of having a ground floor flat is that many come with their own private garden or direct access to communal grounds. Apart from the obvious benefit this provides, which came to the fore as we were stuck at home during the pandemic, it can also make ground floor flats suitable for pet owners compared to their more penned-in upper-floor flat counterparts (although you’ll need to check the head lease to ensure pets are allowed at all).

I have long argued that houses are more popular than flats with both owner-occupiers and tenants. This is because they come with their own entrance, private outdoor space and, normally, better parking. But I’ve visited many ground floor flats that also come with these benefits and it’s not surprising that demand for these are holding up noticeably better at the moment compared to flats without these bonuses.

So for me, a ground floor flat that provides access onto its own outdoor space could be a winner; particularly with an aging population that values their own private space. This is a good way of getting many of the benefits associated with a house, but with a lower price tag.


This article was featured in...





Monday, 19 September 2022

BUY-TO-LET DEAL OF THE WEEK: 2 bed flat in Chichester, £200,000, 5.7% yield

Summary
2 bed flat in Chichester
Listed for sale on 07/09/22 @ £200,000
Rent = £950pcm
Yield = 5.7%

The property is on the market with King & Chasemore and full details can be found on Rightmove via the following link: www.rightmove.co.uk/properties/126800291







Monday, 5 September 2022

BUY-TO-LET DEAL OF THE WEEK: 2 bed flat in Chichester, £275,000, 4.8% yield



Summary
2 bed flat in Chichester
Listed for sale on 27/06/22 @ £285,000
Now = £275,000
Rent = £1,100pcm
Yield = 4.8%

The property is on the market with Leaders and full details can be found on Rightmove via the following link: www.rightmove.co.uk/properties/124373390







Monday, 22 August 2022

BUY-TO-LET DEAL OF THE WEEK:   3 bed house in Chichester, £315,000, 4.8% yield




Summary
3 bed house in Chichester
Listed for sale on 01/04/22 @ £340,000
Now = £315,000
Rent = £1,250pcm
Yield = 4.8%
Last sold for £206,000 in 2006 (+53% in 16 years)

The property is on the market with Hamptons and full details can be found on Rightmove via the following link: www.rightmove.co.uk/properties/121854122







Monday, 8 August 2022

BUY-TO-LET DEAL OF THE WEEK:  2 bed house in Chichester, £260,000, 4.6% yield

Summary
2 bed house in Chichester
Listed for sale on 26/07/22 @ £260,000
Rent = £1,000pcm
Yield = 4.6%
Last sold for £59,950 in 1998 (+334% in 24 years)

The property is on the market with Stride & Son and full details can be found on Rightmove via the following link: www.rightmove.co.uk/properties/125371211







Monday, 25 July 2022

BUY-TO-LET DEAL OF THE WEEK: 2 bed flat in Chichester, £210,000, 5.6% yield


Summary:
2 bed flat in Chichester
Listed for sale on 14/07/22 @ £210,000
Rent = £975pcm
Yield = 5.6%
Last sold for £157,000 in 2004 (+34% in 18 years)

The property is on the market with PMS and full details can be found on Rightmove via the following link: www.rightmove.co.uk/properties/124988273







Monday, 11 July 2022

BUY-TO-LET DEAL OF THE WEEK: 1 bed flat in Chichester, £190,000, 5.0% yield

1 bed flat, Canal Place, Chichester
kitchenlounge

Summary:
1 bed flat in Chichester
Listed for sale on 22/04/22 @ £205,000
Now = £190,000
Rent = £795pcm
Yield = 5.0%
Last sold for £130,000 in 2012 (+46% in 10 years)

The property is on the market with Sims Williams and full details can be found on Rightmove via the following link: www.rightmove.co.uk/properties/122700695







Monday, 27 June 2022

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Chichester, £375,000, 4.5% yield


Summary:
3 bed house in Chichester
Listed for sale on 27/05/22 @ £375,000
Rent = £1,400pcm
Yield = 4.5%

The property is on the market with Linden Homes and full details can be found on Rightmove via the following link: www.rightmove.co.uk/properties/123735716