Buy-To-Let Deal of the Day - 4.6% Gross Yield and £134 Per Week Rise in Value!

This property in Little Breach caught my eye this morning as a decent buy-to-let opportunity. Positioned on the doorstep to the well regarded Jessie Younghusband school (which recently received an 'Outstanding' Ofsted review) this property would be snapped up quickly by working families. 

http://www.rightmove.co.uk/property-for-sale/property-36039312.html

This particular property, on the market with Cubitt & West estate agents at £315,000, appears to be in good order throughout, with an attractive kitchen, as well as a garage and driveway. 

Rents for similar properties in Little Breach currently fetch £1200pcm, which would return a steady gross yield of around 4.6%. Having researched current values in the street, prices have also risen by just over £7000 over the last 12 months (or £134 per week!) which would also provide a potential investor with healthy capital growth. 

Buy-To-Let Deal of the Day - Substantial family home for long term tenants

I was speaking to a landlord last week who lives in Surrey and is looking to expand his property portfolio in the Sussex area. He already owns a lovely three bedroom bungalow in Birdham which has consistently let to families who have stayed, on average, between 4-5 years. Having good quality, long-term tenancies is a big driver for him, and he is looking for properties that offer similar opportunities in the Chichester area.

We established three main focuses for his property search:

1. Proximity to good local schools and transport links
2. High standard of cosmetic finish to attract the best calibre of tenant and minimise expenditure
3. Opportunity for strong capital growth

Looking through Rightmove we noticed a modern four bedroom family home in the village of Nutbourne, close to the sought-after Chidham Schools, and Bosham railway station.

http://www.rightmove.co.uk/property-for-sale/property-35636277.html 

On the market with Whiteheads estate agents at £389,995, a landlord could expect to receive a rent of around £1450pcm - providing a gross yield of 4.5%. More interestingly, however, is that house prices have risen in Nutbourne village by 9.10% on average over the last 2 years, representing a whopping £30,539 in capital growth!

Do semi-detached properties on the Broyle Road make good investments for Buy-To-Let?

I was talking to someone who lives in a detached house on Broyle Road. He wants to purchase his first Buy to Let property and has noticed our rental index and previous articles, so was interested in getting to know the industry a little bit more.

As he has lived in Broyle Road for over 13 years, he felt comfortable investing in there as he knew it well, so we started to discuss the property market in this area. Firstly, we found that 20 semi-detached houses have sold in the Broyle Road since the year 1999.

Property values in Chichester have risen on average by around 140% over the last 15 years, but most semi-detached properties on the Broyle Road have beaten that rise.

When we look back to 2000, a six bedroomed semi-detached property in the Broyle Road was bought for £175,500 and sold in 2006 for an impressive £470,000. With excellent capital growth you would expect yields to be comparatively lower, but some four bedroomed properties on the street can be picked up from £400,000 to £420,000 and could have achievable rents of £2500 to £3000 per month. This means annual yields can reach a very attractive 9%!

If you would like to talk to us about your potential investment, please come into our office on Southgate or give me a call on 01243 887887.

Buy-To-Let Deal Of The Day - Would have Goodwood/Rolls Royce tenants queuing up!

When looking for a buy-to-let investment it is important to do your homework on major nearby attractions and employers, as these are likely to provide a constant source of tenants for your property.

Chichester is no exception, and with a large NHS hospital, University, as well as Goodwood Racecourse and Rolls Royce, it is no wonder that we enjoy such a buoyant lettings market.

Having a good look through the Rightmove listings this morning I noticed this two bedroom apartment close to the A27 which is just a short drive (or cycle/jog if feeling brave!) from both Rolls Royce at Westhampnett and Goodwood Racecourse.

http://www.rightmove.co.uk/property-for-sale/property-53653742.html

On the market with Gilbert and Cleveland at £199,950, this modern two bedroom apartment would need minimal work doing to it in preparation to rent, and with a healthy and ever-replenishing stock of tenants, a landlord would be unlucky to experience any tenancy voids. In terms of rental yield, you would be looking at £795pcm which would return a 4.8% gross annual return (based on the asking price).

Bargains to be had in Lavant!

A landlord became ever more curious about the Lavant Buy-to-let market after reading our articles about various areas of Chichester, so decided to pop in and ask our advice.

I found that a modest three bedroom semi-detached property with a driveway on Springfield Drive was bought for £200,000 in 2000. The same property sold for £216,000 in February this year, which is a rise of 8%. However, prices in the village during this same time period rose by 14.3%, so it should have sold for £228,600 if it kept up with the village’s average house price.

A one bedroom first floor flat on Pook Lane sold for £207,500 in the spring of 2011, and was sold again this April for £198,000. This represents a small drop in price of around 4.5%, whereas average prices in this time have risen by a much more impressive 15.5% in the same postcode sector (PO18 0SA). .

With rents for apartments in Lavant achieving between £700-750 per month, gross yields are around 4.3%. I think in terms of a rental investment, there are better properties, such as smaller two or three bedroom semis, but for owner occupation there are some real bargains to be had.

To discuss the Lavant property market, or any other area around Chichester, please give me a call on 01243 887887.

Buy-To-Let Deal of the Day - 4.7% Yield Plus Capital Growth

As we have previously discussed, buy-to-let is often a tricky balancing act between receiving a healthy annual rental yield, and watching your investment grow in capital value over time.

Whilst looking at Rightmove this morning I noticed new property in a street that has seen average prices rise by over £25,000 over the last 24 months.

http://www.rightmove.co.uk/property-for-sale/property-50828962.html

Situated in St James Road, the property is on the doorstep of Portfield Primary school, which would attract working families looking for a place to make a long-term home. The house appears to be in very good order throughout, and a landlord could expect to receive a rental of around £925pcm, generating a yield of 4.7%.

Well worth a look - On the market with Chichester Estate Agents, Sims Williams.

Apartments in Chichester, are they good investments?

There are over 4,500 flats in Chichester. This represents around 30% of the housing stock here, with the national average being nearer 17.5%. The average price of flats with one or two bedrooms in Chichester is around £205,500 which is nearly 7.75% higher than 2 years ago.

You can buy a one bedroom flat in Arundel Park, for a very reasonable £145,000. If a landlord put down a £40,000 deposit and borrowed the rest, they could achieve around £600 per month in rent. Even after paying the service charge, yields could reach around 4.5% per year. However, you must remember that every landlord’s tax and interest rates are different, so it is essential to research your investment carefully before committing.

Finally, let’s not forget about the potential increase in capital value of the property. I was looking at the one bedroom flats in the Bewick Gardens development off Swanfield Drive, and found that they have sold for around £100,000 in 2000. This value increased by over 50% in 5 years, to £155,250 in 2006. The values have now risen to an average of £186,500, and it is perfectly possible that we could see further growth in the future.

If you would like some advice about what could make a good investment, please visit our offices at 12 Southgate, Chichester or call 01243 887887.