Chichester Property News: renting

Showing posts with label renting. Show all posts

Monday, 10 February 2020

BUY-TO-LET DEAL OF THE WEEK: 2 bed house in Chichester, £225,000, 4.5% yield

Summary:
2 bed house in Chichester
Listed for sale on 05/02/20 @ £225,000
Rent = £850pcm
Yield = 4.5%
Last sold for £186,000 in 2019 = +21% in 1 year

These two bedroom houses are lovely little properties close to Chichester's city centre and yet in an unusually quiet cul-de-sac you'd barely notice. They're an ok size for a starter home, with a good-sized double and small single bedroom. Curiously for a house they are leasehold and come with communal gardens rather than a private one. This can make them appear like a two-storey flat rather than a 'proper' house in many peoples eyes.

What's particularly curious with this property is it was sold only last November...for £186,000. That's some 17% lower than the current asking price of £225,000 and in that time it's only been subject to a light overhaul (new flooring and décor plus a few fixtures) rather than a full overhaul. This causes me an issue in truly promoting it as a good buy, as it's clear you could've bought it for much less only a few months ago. Furthermore, a mortgage surveyor will pick up on this fact and it could affect their valuation as there isn't any real justification for it (other than the current owners bought it cheap). You should also factor in that the most expensive house ever sold in Berkeley Mews went for £205,000 in 2014.

What is also curious is It's got furniture in it now, so it doesn't appear to have been a quick buy, refurb and sell project. Maybe the owners are living in there very short-term (perhaps for tax reasons?), have tenanted it short-term rather than having it empty, or have 'dressed' the property for sale. Either that or their circumstances changed very quickly indeed.

Fundamentally this is a well-presented property in a great location close to Chichester's city centre that is popular with young tenants who get the layout and privacy of a house (plus two parking spaces!) but don't need to tend to a garden. It should rent for £850pcm, which is a decent 4.5% return for a house - but bare in mind it's leasehold and comes with service charges, so really this figure should be compared to a flat, which makes it a little low. And that comes back to the price - some £39,000 more than the current owner paid just a few months ago and £20,000 more than one has ever sold for in the development. Perhaps it should be 'one to watch' rather than 'one to buy now' based on digging into the story behind the property.

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-89128502.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:

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Monday, 3 February 2020

BUY-TO-LET DEAL OF THE WEEK: 2 bed house in Chichester, £245,000, 4.4% yield

2 bed house, Caernarvon Road, Chichester

Summary:
2 bed house in Chichester
Listed for sale on 22/01/20 @ £245,000
Rent = £895pcm
Yield = 4.4%

This is a typical starter home on the Arundel Park estate in Chichester - a two bedroom end terrace house that's in decent condition, having been decorated and carpeted throughout and having a relatively modern bathroom and kitchen.

At £245,000 I wouldn't say it's cheap, but it's fair value and represents the limited supply of houses at this end of the market (it's actually the cheapest freehold house in Chichester currently for sale). A few similar houses around it have been sold for slightly less in the past year, but you can't argue when there's nothing comparable available that is cheaper!

Some of these houses come with a garage, which is certainly a bonus and can add both resale value and rental value to the property. The details don't make it clear whether there is a garage and/or parking available with the house, so assuming there isn't I'd factor in a rental of £895pcm. Whilst that isn't overly cheap, again it doesn't need to be such is the short supply of two-bedroom houses in Chichester. Even so, this would equate to a 4.4% rental return based on that full asking price, so is a pretty average return for the area.

Fundamentally these are solid houses that should appreciate in value in line with the rest of Chichester's property market and can often be further buoyed up due to the lack of supply of such modestly priced starter homes. They lack the additional bathroom or cloakroom that newer builds benefit from, but otherwise have a similar footprint, double glazing and gas central heating. This particular house also has a good garden which offers potential to extend (although from a house price point of view, doing so probably won't make sense).

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-76942552.html

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Monday, 27 January 2020

BUY-TO-LET DEAL OF THE WEEK: 5 bed house in Westergate, £450,000, 4.3% yield

Summary:
5 bed house in Westergate
Listed for sale on 20/01/20 @ £450,000
Rent = £1,600pcm
Yield = 4.3%
Last sold for £329,995 in 2014 (+36 in 6 years)

This is not a typical property I'd choose as my buy-to-let deal of the week for a variety of reasons:

- it's big.
Five bedroom detached house big! Demand for such large houses amongst tenants is typically lower than the more 'normal' two and three bedroom houses. But there is still a market for such properties and the fact there aren't many of them can actually make this a positive when it comes to finding tenants, as those in need of a house this size will jump at the chance when it becomes available.

- it's expensive.
Priced at £450,000, it's far higher than the typical £200,000 - £350,000 range I suggest is a 'sweet spot' for local property investment. But for a house in such excellent condition and with 1,800 square feet of floorspace, it means it comes in at £250 per square foot, which is great value.

- it's in Westergate.
That's not typically an area I pick properties from, mainly because it's more an area for owner-occupiers than renters. But there's been a lot of building in the area recently, so I'm seeing more houses in Westergate become available on the rental market, which shows there is a demand. And why not, it's a nice location with shops and a school within easy access of the A27 (many of the things I was saying about Tangmere several years ago before it seemingly jumped in value).

- it's gone up in price alot since it was last sold.
I always look at what the current owner paid as a guide to whether you're getting decent value i.e. has the price gone up more or less than it 'should' have done? It was last sold for £329,995 in 2014, so on paper the current owner is sitting on £120,000 of profit, as its asking price now of £450,000 is some 36% higher just six years on. Having said that though, they have clearly spent a lot of money on it; with a new kitchen, bathrooms, log burner, flooring and décor all being completed since. So whilst you're not getting a 'bargain', it doesn't look too overvalued compared to what else has sold recently on the street.

So, whilst I expect this property to sell to an owner occupier rather than be bought as a buy-to-let, there are some landlords who prefer to buy larger, more expensive homes. Whilst the rental yield (4.3% based on a rent of £1,600pcm) might not be quite as strong as you could achieve on cheaper properties, there's something to be said for relying on the capital growth of a premium home such as this, whilst also only having one set of tenants to take care of in the meantime.

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-88575053.html

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Monday, 20 January 2020

BUY-TO-LET DEAL OF THE WEEK: 1 bed flat in Chichester, £120,000, 6.8% yield

Summary:
1 bed flat in Chichester
Listed for sale on 13/01/20 @ £120,000
Rent = £675pcm
Yield = 6.8%

Taking a look at the cheapest property in Chichester that's on the market is always a decent start for a potential buy-to-let deal. Doing so brings us to this one-bedroom flat on the Arundel Park estate that has been listed this week for £120,000.

The advert suggests the flat is in need of updating, but from the photos it appears to be in good condition - with double glazing, gas central heating, a white bathroom suite, modern kitchen and neutral décor and carpets. So unless the agent's photography or photoshopping skills are second-to-none, I'd be saying the flat is in a ready to rent condition. The only thing I can see as a stumbling block is the lack of a shower over the bath, but as the tiling is already full-height this shouldn't be too difficult an addition to make.

These flats may be amongst the cheapest properties in Chichester when it comes to the sales and rental market, but even so one-bedroom flats start from around £650pcm in Chichester. Looking in decent condition and being a fair size (including a double bedroom) could see this flat rent for £675pcm, which would be a fantastic 6.8% rental return based on the £120,000 asking price. Something to consider with flats of course is the ground rent and service charge, as well as the length left of the lease, for which there are no details in the advert.

Taking the advert and photos at face value though, this ground floor flat seems to be a good prospect for a landlord who prefers to deal in the cheaper end of the market. That's not for everyone, but with a generous rental yield on offer you can understand why someone could be tempted.

The property is on the market with PMS and full details can be found on Rightmove via the following link:
https://www.rightmove.co.uk/property-for-sale/property-67604853.html

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Monday, 13 January 2020

BUY-TO-LET DEAL OF THE WEEK: 4 bed house in Chichester, £347,500, 4.8% yield

Summary:
4 bed house in Chichester
Listed for sale on 26/07/19 @ £375,000
Now = £347,500
Rent = £1,400pcm
Yield = 4.8%

This good-sized townhouse is on the Shopwyke Lakes development to the East of Chichester's city centre. It's only a couple of years old, so it retains everything you would expect from a new build, although this four bedroom end terrace also has a decent-sized garden, driveway and garage.

It's been on since July and I'm a little surprised to see it still on the market six months later whilst the (more expensive) new houses have sold around it (there's only a couple left of the first phase of the development now). Especially when it was originally listed at £375,000 (which seemed reasonable value for a property of this size and age) and it has been reduced in price a couple of times since - most recently the week before Christmas, bringing it down to £347,500.

Although the bedrooms aren't the biggest (notably bedroom four is labelled as a study on the floorplan) being spread out over three floors does mean a total floorspace of just over 1,000 square feet, which makes it a sizable home for the price. In fairness, three bedroom townhouses are of a similar overall size, by way of turning what is currently a fair sized double and a small single on the top floor with a shared bathroom, into one large en-suite master bedroom. Even if you think of the house like that (and effectively use bedroom four as a dressing room), it still offers good accommodation for the price.

A professional couple or young family may well use the property with that type of set-up in mind, so you'll be competing with three-bedroom houses that are a similar size. Even so, it remains a four-bedroom house and based on it being relatively new it is likely to attract a premium rent, in the region of £1,400pcm. If it does it would achieve a 4.8% rental yield, which is strong for such a new freehold property in Chichester.

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-83546993.html

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Monday, 16 December 2019

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Chichester, £259,500, 4.6% yield

3 bed house, Caernarvon Road, Chichester

Summary:
3 bed house in Chichester
Listed for sale on 06/12/19 @ £259,500
Rent = £1,000pcm
Yield = 4.6%
Last sold for £219,000 in 2013 (+18% in 6 years)

This three-bedroom house on the Arundel Park estate in Chichester is new to the market and is currently the cheapest three-bedroom house available to buy in Chichester; so it's definitely worth a closer look!

Arundel Park is typically one of the cheapest parts of Chichester when it comes to housing, but at £259,500 this three-bedroom house seems a particularly good deal. It's priced at not much more than some of the two-bedroom houses were selling for on the estate recently. Even so, it has increased in price by 18% in the six years since it was purchased by the current owner (for £219,000 in 2013).

It's in decent condition and appears to be pretty neutral throughout with little that needs doing to get it in a lettable condition. It was up for sale last year and the photos now show it to be empty and the advert as having "no forward chain". This is good information to have as it means the owners struggled to sell it last time out (which will still be in their mind) and now that it's empty they're likely to be keen to get it sold - hence the decent price (and potential for a 'cheeky' offer).

Even if it were to sell for the full asking price, it would still achieve a 4.6% rental return based on letting for £1,000pcm. That's a decent return, especially from a freehold property in Chichester that needs little to no money spent on it.

The property is on the market with Charles Peck and full details can be found on Rightmove via the following link:
https://www.rightmove.co.uk/property-for-sale/property-87259229.html

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Monday, 9 December 2019

BUY-TO-LET DEAL OF THE WEEK: 2 bed flat in Chichester, £187,500, 5.3% yield

2 bed flat, Shamrock Close, Chichester, West Sussex

Summary:
2 bed flat in Chichester
Listed for sale on 29/11/19 @ £187,500
Rent = £825pcm
Yield = 5.3%
Last sold for £192,500 in 2016 (-3% in 3 years)

It's not often I write about a property in Chichester that has lost its current owner money. That in itself gives an indication a property is now available at a decent price. I believe that's the case with this two-bedroom flat in a good rental location (right next to St Richard's Hospital).

It's just been listed at £187,500, which is £5,000 less than the current owner paid in early 2016. Based on a rental value of £825pcm, it could provide a very good 5.3% rental return. Having said that the service charge at £1,322 last year is rather high for a block of this age and nature and will instantly drag that rental return down to a less spectacular 4.6%. At least the ground rent is only £10 a year and the lease has a decent enough 92 years left on it (although money will need to be spent extending that in the not too distant future).

The flat itself is a very good size with two double bedrooms. It's also in great condition, with a modern kitchen and bathroom. It's neutrally decorated throughout and has double glazing and gas central heating - so it really is ready to rent with very little money needed to be spent on it. As a bonus it has its own private garden - something I've written about before that is a huge draw for a flat in the 'flat vs house' debate.

All of the above makes it a versatile home to accommodate a variety of tenants - be that an individual / couple / friends / sharers / those with or without children. That should mean it is always in strong demand from tenants, which is one of the core principles at the heart of a good buy-to-let property.

The property is on the market with Charles Peck and full details can be found on Rightmove via the following link:
https://www.rightmove.co.uk/property-for-sale/property-87052457.html

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Monday, 2 December 2019

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Chichester, £266,000, 4.5% yield

3 bed house, Elizabeth Road, Chichester,

Summary:
3 bed house in Chichester
Listed for sale on 16/09/19 @ £280,000
Now = £266,000
Rent = £1,000pcm
Yield = 4.5%
Last sold for £208,000 in 2008 (+28% in 11 years)

Reduced by 5% this week from its original asking price of £280,000 is this three-bedroom house in Chichester. It's been on for about 10 weeks and has now been reduced to a very reasonable £266,000. That puts it amongst the cheapest three-bedroom houses in Chichester, so it's definitely worth a closer look.

It's located around a mile east of the city centre and is nearby to both primary and secondary schools. It's very much a house aimed at families, with a fairly standard layout including two double bedrooms and a single. It's in decent condition but could do with a few new carpets and a modernisation throughout. This could be easily done to the white suite bathroom by changing the wooden panels, whereas the kitchen might warrant a replacement. If this was done it presents a good opportunity to move the wall between the lounge and kitchen so as to create a spacious kitchen/diner and a fair sized lounge, rather than the current large lounge and compromised kitchen layout.

With the basic updating it should still rent for £1,000pcm, which would mean a 4.5% return based on the full asking price. If the kitchen was replaced and expanded it might warrant a little more than this and would certainly help in making it a sought after property (as well as increasing the property's value). It last sold for £208,000 in 2008, so has risen in value by 28% in 11 years.

The property is on the market with Cubitt & West and full details can be found on Rightmove via the following link:
https://www.rightmove.co.uk/property-for-sale/property-84806948.html

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Monday, 25 November 2019

BUY-TO-LET DEAL OF THE WEEK: 2 bed flat in Chichester, £199,000, 5.0% yield

Summary:
2 bed flat in Chichester
Listed for sale on 17/04/19 @ £230,000
Now = £199,000
Rent = £825pcm
Yield = 5.0%

This two-bedroom first floor apartment has been refurbished throughout and is in a good location to the South of Chichester's city centre. It's been on the market since April; originally it was priced at £230,000 but it was reduced to £215,000 in September, when another agent was added into the mix to try and sell it, and it's now been reduced to a very decent £199,000.

It's in a good 'ready to rent' condition, having been redecorated and recarpeted throughout, along with receiving a new kitchen, bathroom, double glazing and electric heating (sadly there's no gas at the property to provide gas central heating - although this could have been accessed from the street and I believe would have been a worthwhile addition).

It's a very good size inside, although again had I been refurbishing it I may have re-configured the layout so bedroom two was more generously sized - the lack of a second double bedroom will be a downside for both buyers and tenants.

It was obviously one house once upon a time and it appears to have recently been split into two flats on the basis of its refurbishment and the new 125 year lease. The ground rent (£250 per annum) and service charge (£310 per annum) are reasonable, although check the lease to ensure these figures won't ratchet up indefinitely.

Being positioned close to the potential Southern Gateway development could be a boon for this property for a long-term landlord, who should expect to achieve a solid 5% rental return based on the full asking price when achieving a realistic £825pcm.

The property is on the market with Henry Adams and full details can be found on Rightmove via the following link:
https://www.rightmove.co.uk/property-for-sale/property-85118042.html

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Monday, 18 November 2019

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Chichester, £279,950, 4.5% yield

Summary:
3 bed house in Chichester
Listed for sale on 12/11/19 @ £279,950
Rent = £1,050pcm
Yield = 4.5%
Last sold for £275,000 in 2016 (+2% in 3 years)

Built in the 1960's this three-bedroom house is a little older than those I typically highlight as one of my buy-to-let deals of the week. It's also closer to Chichester's city centre than normal though, so being an older build makes sense in this context.

Importantly it's of a sound construction with good sized rooms and the go-to double glazing and gas central heating. It's also relatively modern inside so shouldn't take much work before it's ready to rent (although you may want to revert the current walk-in bath setup to a 'normal' bath tub). It also sits on a particularly nice corner plot that provides a bigger than normal garden.

This street is renowned for being a little tight for cars and parking, although the house comes with a garage in a nearby block. It's new to the market this week (although it was actually on with a different agent previously) and is priced at a reasonable £279,950. Assuming it rents for around £1,050pcm (£1,000pcm for the house and £50pcm for the garage) it would return a decent 4.5% rental return based on that full asking price.

Interestingly it sold for £275,000 back in 2016 so prices seem to have been relatively flat in the past few years for this particular property. The previous two sales in the street for similar houses have both been for £275,000 (both occurring last year), so it seems fairly priced right now given it's decent plot, condition and size (it's had a rear extension that only some of the houses in the street have).

The property is on the market with Kenton Budd and full details can be found on Rightmove via the following link:
https://www.rightmove.co.uk/property-for-sale/property-86552285.html

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Monday, 11 November 2019

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Westhampnett, £335,000, 4.5% yield

3 bed house, Lillywhite Road, Westhampnett

Summary:
3 bed house in Westhampnett
Listed for sale on 05/11/19 @ £335,000
Rent = £1,250pcm
Yield = 4.5%

This three-bedroom house is in a nice position on this newish-build estate (circa 2011-2013) in Westhampnett. It comes with a driveway and garage, whilst the corner plot affords it a larger than normal rear garden.

These houses are extremely popular with Rolls Royce workers as they are practically next door to the factory / head office. As a result they always rent well and do so at a slight premium to what you might typically expect - in this case you should achieve £1,250pcm based on the better than normal plot. Doing so would give you a decent 4.5% rental return based on the asking price of £335,000, which is reasonable compared to other nearby three-bed houses.

It is in a good condition throughout and comes with all the mod-cons you would expect of a relatively new home i.e. double glazing / gas central heating / downstairs cloakroom / en-suite to master bedroom. It appears to require no significant work or expenditure on it to get it in a ready to rent state, so would suit a landlord looking for a simpler time of things.

There is one thorn in the side of these houses though - they're leasehold (as they're built on Goodwood land). That's quite unusual for houses in general and something to watch for as it means there is an annual ground rent to pay (unusual for a house) plus service charges (quite normal for estates built post 2000). There's been a lot of media attention regarding leasehold houses so it may be that the law changes retrospectively in this regard. For now though there is an impact upon the saleability of the houses as it can put people off; although as long as you factor in the additional cost of the ground rent it shouldn't be anything to be afraid of in my opinion.

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-81970064.html

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Monday, 4 November 2019

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Chichester, £255,000, 4.7% yield

3 bed house, Winterbourne Road, Chichester

Summary:
2 bed house in Fishbourne
Listed for sale on 07/10/19 @ £260,000
Rent = £950pcm
Yield = 4.4%
Last sold for £127,500 in 2002 (+104% in 17 years)

This house may be marketed as having four bedrooms but really it's a three-bedroom house, as the 'fourth' bedroom is a dining room. It's labelled like that because many of the houses in this area are let to students and the dining room is indeed used as a fourth bedroom in most of these. Interestingly, some of these houses originally only had two bedrooms, but a large cupboard in the master bedroom was converted into bedroom three by adding a skylight!

Regardless of the above, at £255,000 the square footage on offer makes this a decent proposition whether you plan to use it as a three or four bedroom house. I've mentioned before that quite a few of these properties have been coming to the market in the past few months as landlords to students are giving up on the market in the face of changing tenant demand and expectations.

I'm not sure whether this particular property was a student let gone wrong or simply an owner occupier whose circumstances have changed. I say that because it was only purchased two years ago and the photos now show it empty. In that time the owners have installed a new kitchen, bathroom and wc...and yet still the £255,000 asking price is £10,000 less than they paid, so unfortunately they are well out of pocket.

This does underline that it is now for sale at a very reasonable price. If purchased by a landlord looking to rent to a family, I think a lick of paint should see them then rent it for £1,000pcm. This would equate to a very decent 4.7% rental return from a property that is likely being dragged down by the exodus of student lets in the area. Fundamentally though, three bedroom houses in Chichester don't come much (if any!) cheaper than this, so for the long-term buying this property at this price now looks to be a reasonable bet.

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-85373744.html

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}