Property in Chichester is flipping great!

Property prices in Chichester are up 30% in the past five years, which means most property sales now go through at a higher price than the previous owner paid.

In some cases, properties are being sold for far more than they were just a few years ago, tempting some people into ‘flipping’ the property they bought during the ‘credit crunch’.

A good example of this is a four-bedroom house in Graydon Avenue that sold for £510,000 in October. That’s 75% more than the £292,000 it sold for in September 2008, which was when the credit crunch was just about kicking into top gear. When you consider the price had only risen 12% in the six years prior to this sale (when it had sold for £260,000 in December 2002) the increase in the past nine years is even more astounding.

All time high house prices are also allowing the ‘accidental landlords’, who decided to rent out their former homes rather than sell them at a price they didn’t deem acceptable, to now offload their old property. This is adding fuel to the noticeable drop in the number of rental properties that are available in Chichester.

Even though property prices have recovered, it is rare in Chichester for investors to buy, refurbish and ‘flip’ properties like they used to in the former ‘Property Ladder’ days. Extra stamp duty to second home buyers and greater competition from first-time buyers benefitting from low interest rates has meant the margin to do this has largely dried up here in Chichester, where properties also don’t tend to fall into disrepair as often as in other less affluent areas.

Most professional landlords instead adopt a ‘buy and hold’ approach to property investment so as to benefit from the long-term capital growth houses have historically offered. Recent sales data demonstrates how long-term investment in property can reap big rewards, as a three-bedroom house in Kensington Road recently sold for £350,000. This is 415% higher than when it was bought for £68,000 in 1996, which is an annualised increase of 8.1%.

Even with such strong house price rises in recent years though, property isn’t always a one-way bet. An apartment was sold in Chichester in July this year for £149,950...some £81,000 less than when it sold for £230,950 in May 2009! In this example however, the apartment in question is in a retirement complex - a type of property that is notorious for being difficult to sell and generally offering a poor financial return.

If you’re looking at buying a property in Chichester and would like a free background check on its previous sale prices and how that compares to the wider market, please get in touch.

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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: 1 bedroom apartment in Chichester, £204,995, 4.7% yield

Summary: 1 bedroom apartment in Chichester Listed for sale on 28/09/17 @ £204,995 Rent = £800pcm Yield = 4.7%

I previously highlighted a two bedroom apartment in the same development (Graylingwell Park, Chichester) as this week's buy-to-let suggestion. I've just this week marketed that two bedroom apartment for rent (at £950pcm) and then I saw this one bedroom apartment come to the sales market. It offers similar benefits of being in a converted Victorian building, which offers character and beautiful large sash windows that radiate light into the high ceiling rooms, but comes with modern insulation and amenities. The bedroom is an excellent size and the property is in a great condition throughout, with a modern kitchen and bathroom. I recently let a one bedroom property in the nearby Roussillon Park at £850pcm and must admit I was a little surprised by the relatively high tenant demand from what, at that price, is an expensive one bedroom apartment. As this particular apartment doesn't have a separate kitchen I think it is likely to fetch around £800pcm, which is still above the £750pcm average a one bedroom apartment lets for in Chichester. This is warranted though, due to its location amongst 85 acres of parkland and its great presentation. At that rent it would provide a yield of 4.7% based on the full asking price of £204,995. It is on the market with Cubitt & West and full details can be found on Rightmove via the following link: http://www.rightmove.co.uk/property-for-sale/property-69091952.html ***NOTE: The property is now SOLD. Clearly it was a good pick, so I'm sorry you didn't get a chance to review it before it was snapped up. If you're looking for a buy-to-let and would like some help wading through the properties for sale, please get in touch. *** ________________ 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 __________________________________

Landlords: Should you accept pets?

Many landlords instinctively say they do not want pets in their rental properties due to the possibility of damage or noise. With 46% of the population owning a pet, is this really a sensible approach to take?

In some circumstances it is. You’ll need to check the lease of a leasehold property to see whether pets are allowed. You should also consider the type of property as to whether its age and/or size would accommodate pets suitably. Housing a large dog in a brand new furnished property may not be sensible, nor in a Grade II listed home with wooden floors and window frames.

In principle though, I have no issue renting my properties to tenants with pets as long as I’m careful in my selection. Just like kids are a reflection of their parents, you can often judge a pet by its owner. I might politely decline a young unkempt individual who comes to a viewing dragging along two fire-breathing Pit Bull Terriers. On the other hand a well-presented professional couple are likely to take pride in how their pet behaves.

Because so many landlords and agents simply refuse to allow pets in their rental properties, it means a wider tenant pool for those who do (and potentially a higher rent). Tenants that are ‘lucky’ enough to find a landlord that accepts pets will often make every effort to be an exemplary tenant so as to remain in the property. It often leads to longer-term tenancies from grateful tenants who know they have fewer options should they need to move.

Landlords should perhaps accept that when renting ‘family houses’ quite often their target audience (families) will have a pet that is part of the family. Being flexible towards pets may help let the property quicker, which will ultimately save you money.

As well as carefully assessing the owner, a landlord can also protect themselves in other ways. Be sure to check with previous landlords the pet’s conduct in their property. You may even wish to visit the tenant (and the pet) in their current home.

You could also take an increased security deposit to further protect against the pet causing damage. Some landlords even take a non-refundable fee to cover an end-of-tenancy clean (I avoid this as I think it gives tenants an excuse not to clean at the end of the tenancy).

A thorough inventory should always be taken so there’s no confusion about what kind of state the property was in before the tenant/pet moved in. You should also put a clause in your tenancy agreement of what pets have been allowed and some conditions regarding the upkeep of the animal and the property e.g. keeping litter trays clean / treating for fleas.

Ultimately it is the landlord’s choice whether they wish to accept pets in their rental property. My experience shows that the right tenant who happens to have a pet will infact take extra care of the property, whilst staying longer, remaining grateful to have found a home for themselves and their furry friend. 

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

on 8th October 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.

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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