Chichester City Centre - 5.5% + Gross Yield!

Good afternoon everybody. On my morning check of the market, the following property not only caught my eye, but made me look again to make sure the price was right! It’s a snip!!

 

It’s a one bed apartment located just off East Street and the asking price with Cubitt and West is £150,000. As ever, these properties are in constant demand and will let out all day long for £695 - £725 per month. What’s more impressive, is that it’s offered with no onward chain, meaning a swift purchase could be achieved.

Now here comes the interesting part….. if we were to calculate the yield based upon a conservative £695 per month, the gross yield is nearly 5.6% which is seriously impressive for Chichester City Centre.

http://www.rightmove.co.uk/property-for-sale/property-48568834.html

Top 10 Most Affordable Streets in Chichester

As a buy-to-let landlord, you may be interested in which areas of the city are the most affordable. Below is a list of the Top 10 least expensive streets in Chichester (PO19 Postcodes only), based on sold prices since 1995 registered with the Land Registry:

1. Lennox Road - £126,860

2. Herald Drive - £130,450

3. Douglas Martin Road - £132,126

4. Whiteside Close - £136,000

5. Bishops Luffa Close - £139,097

6. Wilson Close - £143,295

7. East Walls - £144,873

8. Shamrock Close - £147,223

9. Whyke Close - £149,726

10. St Cyriacs - £149,993

It is certainly worth pointing out that not all the properties sold above would have exchanged hands under 'normal' market conditions. For example, Right-To-Buy and compulsory purchase schemes may have impacted on sale prices, as well as localised demolition and regeneration i.e. the new apartments along East Walls (Shippam Street and Roman Quarter).

Furthermore, many of these streets are also almost 100% populated with one bedroom apartments and studios, which of course will distort the figures and bring the average sale price down.

Interestingly enough, however, we regularly get requests specifically for apartments in Lennox Road from NHS staff and nurses working at St Richards, due to its close proximity to the hospital.

Buy-To-Let Deal of the Day

Having completed a daily trawl through Rightmove I noticed a property that could make a fantastic potential buy-to-let opportunity.

Located in Charles Avenue (just a short walk distance from St Richards hospital), these properties are popular rental investments, as offer large living accommodation, lower than average ground rents and service charges, and ample off road car parking. 

Taking into account some cosmetic work to maximise tenant appeal, terms of rental returns, you would be looking at £650pcm for a 2 bedroom apartment. Based on a £150,000 purchase price would offer a 5.2% gross yield. 

Currently on the market with Chichester agents Charles Peck, I believe this property is well worth considering!

http://www.rightmove.co.uk/property-for-sale/property-47003836.html

Welcome to the Chichester Property Blog

Thank you for visiting the Chichester Property Blog. I hope that you will enjoy reading the posts over the coming weeks and months and pick up some useful hints and tips along the way. 

Property purchase prices in the City of Chichester and surrounding hamlets have always been considerably higher than the national average.  Currently your average three bedroom semi costs almost £50,000 more than elsewhere in the UK. Bad news for Buy-To-Let landlords? Far from it! 

These largely unobtainable property prices, coupled with recent changes to mortgage application criteria, have meant that more and more good-quality working people/families are deciding to opt for rental accommodation...."Generation Rent". 

I spoke to a landlord of ours on Saturday who had a property that she purchased in the height of the property market in 2006, and sold in the depths of recession in 2008. This lady sold her property for £13,400 more than what she paid for it. This sale released enough equity to put towards her next buy-to-let property, which is currently rented to students at nearby Chichester University, achieving a gross annual yield of 7.8%. 

This consistent year-on-year capital growth, healthy annual yields, along with an ever-increasing quality of tenant make Chichester a property investors dream.