Buy-to-let Deal of the Day - Neat and Well Presented Apartment offering 5.3% Gross Yield

As we have previously discussed, it is extremely important to obtain full details of all service and maintenance charges when considering purchasing a leasehold investment. These costs can often run into well over a thousand pounds per annum, taking a serious chunk out of a landlord's yield. 

Whilst browsing Rightmove this morning I noticed a two double bedroom apartment with an annual maintenance charge of a very modest £600 (plus a peppercorn ground rent of £10 p.a.).

On the market with Bryne Runciman Estate Agency for a guide price of £180,000, the flat is offered in good condition, with a fully tiled modern bathroom with shower, and two double bedrooms. Elizabeth Road is situated approximately one mile to the east of Chichester City Centre, and a similar distance from St Richards hospital. 

Our agency manages several apartments within this particular development, with rents achieving between £775 and £795pcm. These properties tend to attract either young working couples or professional sharers, due to their close proximity to the city centre and A27. 

A purchase price at the £180K guide, coupled with a £795pcm rent, would return a 5.3% gross yield. If we also take into account the service charges of circa £50 per month, a potential investor would still see a healthy 5% return.