A question I always ask our clients is "have you considered your exit strategy?". By asking this question it provokes the discussion as to whether a property investment is likely to be a long or short term venture for the client.
Each landlord has different individual circumstances, some are investing in property for the long-haul, for their children when they grow up or as a nest-egg for retirement. Landlords such as this may want to research the history of sold prices in a specific street, as a substantial and consistent rise may outweigh the need to achieve 5, 6 and 7% gross rental yields.
Other landlords may be property developers and investors, looking to maximise the rents they receive to raise capital to invest on further assets. These clients may want to see a minimum of 7% annual yield, before selling up after 18-24 months, and moving on to their next project.
Chichester is a prime area for capital growth, hence why many landlords have purchased property with 10, 15, 20+ year strategies in mind. A perfect example of strong capital growth is this beautiful three bedroom house on the extremely sought-after Summersdale Road. Currently on the market with Henry Adams estate agents at £410,000, this property has seen huge annual capital growth, averaging a whopping £25,000 since it's last sale at £285,000 back in January 2010. Based on the properties condition and location, I don't think the vendor will have any difficulty achieving a quick sale close to the asking price.
http://www.rightmove.co.uk/property-for-sale/property-52285931.html?premiumA=true
From a rental perspective, this property should fetch £1250pcm, returning a 3.7% gross yield, which is still greater than one can expect from a savings account at this moment in time.
All in all, a very sound investment!
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