Merry Christmas!

I would like to take this opportunity to wish everyone a very Merry Christmas.

Thank you for taking the time to read my blog this year, I really hope that you have found the articles informative. 

Enjoy the festive season and have a Happy New Year!

Matthew

Martin & Co Chichester - Launch of Residential Sales Department

We are pleased to announce that we will be launching our residential sales department in January 2016 to complement our established lettings service, with a vision-plan to offer landlords in the Chichester area a ‘one stop shop’ for their buy-to-let investments.

Since the Chancellor announced a rise in Stamp Duty Land Tax in his Autumn statement we have seen an increase in enquiries from landlords, both existing and new, keen to expand their portfolios and invest before the changes take effect in April next year.

Martin & Co believe that there is likely to be a flurry of activity before the Spring of 2016, however as long as careful and considered investment advice is sought, any initial increase in financial outlay will be recouped by purchasing the right property and maximising the rental return of the investment.

As a property industry expert, with many years’ experience working within the local marketplace, we firmly believe that we are best-placed to listen to your aspirations from your investment - from initial purchase right through to exit strategy - to ensure that we guide you towards a successful and prosperous buy-to-let experience.

Similarly, if you are considering selling your investment property, who better to manage the process from start to finish, than a company you can trust and who know your property inside-and-out to provide a prospective purchaser with detailed answers to all of their questions from initial point of enquiry. 

Buy-To-Let Deal of the Day - 17% Capital Growth Over 8 Years PLUS 4.8% Gross Yield!

Looking through Rightmove this morning I noticed a property that I feel is worth serious consideration if you considering entering the buy-to-let investment market, or indeed looking to expand your current property portfolio.

St Georges Court on Cleveland Road (just off Whyke Lane) is a modern, niche development of ten apartments which have a successful track record of renting extremely well over the years to both single professionals and working couples, and in my opinion would make a safe BTL investment.

http://www.rightmove.co.uk/property-for-sale/property-38444121.html 

Rental values in the block have risen by around 4% over the last three years, with sales values also on the up, from circa £150,000 for a one bedroom ground floor unit back in 2007, to around £175,000 this year - a growth of over 17%.

Void periods are also very low, with one of our landlords in the development only experiencing a total of 13 days without rent in the 5 years we have managed his property. 

The above price rises, minimal voids, and the curb appeal of modern apartment living, are all big factors in what makes a successful BTL venture.

If you are considering investing in the Chichester property market, whether this be for investment or for a house to make a home, please come and speak to us first for free, impartial, and honest property advice.

Changes to Buy to Let Stamp Duty - Statement from MartinCo PLC

In Wednesday’s Autumn Statement (25/11/2015), the Chancellor announced that buy-to-let landlords and people buying second homes will face an additional 3% surcharge on each band of their stamp duty land tax bill, commencing from April 2016. The rate of duty will be as follows: 

Property value	Standard rate(currently)	Buy-to-let/second home rate (from April 2016)
0 -£125,000	0%	3%
£125 – £250,000	2%	5%
£250 – £925,000	5%	8%
£925 – £1.5m	10%	13%
over £1.5m	12%	15%

This surprise intervention comes at a time when the buy-to-let market is working extremely efficiently and we believe this move has been announced for political, rather than economic, reasons. Lending in this market is at record post-credit crisis levels with over 1,000 BTL products available and c.20% of the population is now housed in the private rental market in the UK. The day after the Chancellor’s announcement, it was revealed that the Government had once again missed its target to reduce net migration into the UK, and the latest figures were at a new high, with 330,000 people added to the UK population over the year.

MartinCo Plc continues to believe that all of the drivers for further growth in buy-to-let remain in place; restricted housing supply, high net migration, limited affordability and restrictions on lending. The management believe that total returns from buy-to-let will continue to outpace other investments including traditional pensions, and have the psychological and emotional advantage of being an easily understood, tangible asset.

Martin & Co Plc believe a principal effect of these changes will be for prospective buy-to-let purchasers to factor this into the price they are willing to pay for a property, and this will have a dampening effect on appreciating house prices in some sections of the market. One may argue as a consequence, that buy-to-let purchasers could be out bid by purchasers for owner occupation (e.g. first time buyers); however we believe buy-to-let purchasers will continue to be better placed to bid/complete on these properties given that they typicallyhave more cash to inject and less restrictive buy-to-let mortgage conditions meaning that there is greater certainty of the sale completing.

It should also be noted that buy-to-let purchasers  generally have long term time horizons for investment e.g. to provide supplementary income to employment income over a number of years. The effect of an uplift of 3% on the initial transaction cost is therefore unwelcome, but does not significantly affect total returns over the long term,  especially if factored into the purchase price.

Further, we believe this move is the lesser of two evils; given the Government’s new found desire to promote home ownership, we believe that higher transaction costs are significantly less severe than other potential regulatory levers, such as restrictions on buy-to let lending or rent controls.

In the short term, we would actually expect some benefit to the buy-to-let market, as we would expect prospective investors to bring forward purchases to before the April 2016 deadline for these changes.

There is also the interesting possibility of tax engineering by creating corporate vehicles such as Real Estate Investment Trusts to own larger numbers of properties and escape both the extra stamp duty and the taper reductions in mortgage interest relief.

Therefore, we believe initial reactions, including that of the Association of Residential Letting Agents (ARLA) who described the announcement as a “catastrophe” in mainstream press, to be significantly overblown. While admittedly an unwelcome move for letting agents, we believe current thoughts as to the severity have been greatly over exaggerated.

We do think any effects these changes may have on buy-to-let investment will be felt most in the prime London market given the higher transaction values.

Student Landlords - Fail To Prepare, Prepare To Fail!

Chichester is home to just over 5,000 University students, studying a variety of courses ranging from Fine Art to Sports Science, and Primary Teaching to History. In such a vibrant and thriving University city comes a very strong student buy-to-let market. 

Having worked with many student landlords over the years, one of the most important aspects of the lettings process I have learnt is that advertising timings and tight tenancy renewal's processes are absolutely key to securing a successful tenancy. 

Experience tells us that the majority of motivated students looking for accommodation for the next academic year will start their search early to ensure they secure the best houses available. Approximately 80% of students will look to secure their accommodation for next year during the months of January and February.

If you are a landlord with a student property for this next cycle here are a few tips that have served us well in ensuring your property does not get left behind when the window and interest closes (around late March/early April.

1.    Have you or your agent called the existing tenants to determine their intentions for the next academic year? They should be offered the option to renew at a price you have decided with the help of your agent if you currently use one.

2.    Ensure a time frame for decision is agreed. As the marketing window for this period is so sensitive it is always best to lay out the conditions under which the renewal is offered. We recommend a decision by the 1st February with a new agreement signed and completed. During this time the property should be marketed and the tenants made aware, so that interest is generated.

3.    Get that signed agreement back ASAP! A tenant telling you 'yes we would like to renew', is not a legally binding agreement. Every day that you don’t have a signed agreement is another day wasted on marketing. If you don’t have an agreement in place and the tenants decide to change their mind, your property is caught in a bad marketing period and you may struggle to secure new tenants for the following year. Tenants DO change their minds for all sort of reasons. they drop out of their course, they decide they need a change or they fall out with their housemates. It all happens and more regularly than you'd imagine. A signed agreement ensures they are committed.

4.    If your tenant is leaving, do not delay the marketing and most importantly of all, instruct a reputable letting agent (unless of course you are already using one!). All new first year tenants will be guided by college mentors. This includes advice on accommodation and the "do's and don’ts" when renting a property. A decent agent offers them the security they are looking for and gives your property the greatest shop window to achieve maximum return - The World Wide Web of course! 

If you are a student landlord, or considering entering the student BTL market, please give me a call on 01243 887887. We always give our advice freely and are happy to assist with any questions or queries you may have.

Market Intelligence Report Autumn/Winter 2015

Our new Market Intelligence Reports are hot off the press and proving extremely popular with our landlords and property investors!

The latest edition, compiled by Dataloft, an independent property research company, has found that accommodation rented to families with one dependent child has almost doubled in the last decade. 

This intelligence is telling us is that professional families, who would have once harbored intentions to purchase their own property, are now seeing rental accommodation as a long-term alternative to buying. This could be for a variety of reasons - rising house prices, struggle to obtain finance/raise deposits, flexibility to migrate and re-locate with work/business etc. 

This change in demographic, coupled with a 21% increase in tenant activity since the beginning of January 2015, imply that that the buy-to-let market remains a savvy, sound and growing investment strategy.

To receive your free copy of the Report please email me at matt.berry@martinco.com

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. 

Nine Ways To Maximise Your Buy-To-Let Profits

You may recall my commentary regarding landlord tax changes in last months blog. This article prompted several calls from our clients, concerned that these changes in the buy-to-let sector will wipe out their profits.

So, how can you claim against the tax? Most of the basics still apply – buying and furnishing properties are capital expenditure and therefore not claimable – but there are elements of your portfolio that are claimable.

Mortgage Interest

You are currently allowed to offset your mortgage interest against your tax bill at your personal tax rate.

Unfortunately, this is set to change – controversially. Landlords won’t be able to deduct their mortgage from their rental income once the changes are implemented. Instead, you will be taxed on the rent you have received, not the profit you make. Therefore, you can be taxed on profit that isn’t there – you can be taxed more than 100% of your profit.

Mortgage fees

Broker and arrangement fees are tax deductible and claimed for the year that the mortgage was arranged.

Letting agent fees

Based on a national average rent of £749 and an average agent’s fee of 10-15% of the monthly income, you can claim back all of these. This could equate to £1,350 a year.

Securing a tenant

Landlords who find tenants without the help of an agent can claim back the cost of advertising for tenants, purchasing tenancy agreement, credit checking and other costs. You can expect these to cost roughly £300 each time a new tenant moves into your property.

Building and contents insurance

Cover for low-risk buy-to-let properties costs around £200 a year. This is claimable.

Maintenance and repairs

Although getting the property fit for purpose is capital expenditure, keeping it that way isn’t. Wear and tear is claimable. Maintenance costs include mending windows and doors, white goods, furniture and decorating.

Furniture

Another area subject to change. Your current 10% wear and tear allowance is being replaced by an ‘actual costs’ tax allowance. Therefore, you will only be able to claim back on the furniture you replace in a tax year.

Ground rent and service

If you are a leaseholder you probably pay ground rent to the freeholder. You can also claim back the costs of gardening and electrical costs, cleaning, heating and lighting in common areas, and security and concierge staff. Depending on how many of these you incur a year, it would make sense to claim on them.

Council tax and utility tax

If you are paying the bills that a tenant would normally pay, you can claim back the whole cost. A major benefit is that you can claim these costs even during void periods.

Others

Other direct costs such as phone calls, stationery and traveling expenses to make home visits are claimable.You can also claim back on the fee of an accountant who prepares your tax return.

Landlords – Prepare Your Properties For Winter

Extreme weather such as unexpected snow, strong winds and gales like we have experienced in recent winters can put a huge strain on our homes, leading to burst pipes, boiler breakdowns and big bills.  All it takes is a few simple checks (preferably before the first cold snap!) to get your home winter fit. Here's how....

Do Some Pre-Winter Maintenance

 A few spot checks around your home will reduce the likelihood of winter rains, wind and cold causing structural damage. 

* Clean out the guttering and check for any leaks or damage.
* Cast your eye over the roof from ground level to look for problem signs such as loose or missing tiles. Check that TV aerials are securely fixed.
* Look out for cracked, loose or missing pointing or rendering on exterior walls and have this fixed before water finds it way in.
* Get your boiler and/or central heating serviced by a Gas Safe Registered engineer.
* Clear out leaves and debris blocking up drain grilles and clean patios and footpaths before they get slippery from a build-up of dirt.
* Have chimneys and flues swept if you use an open fire or wood burner.
* Get your insulation up to scratch - lag pipes and water tanks, fit draught excluders and insulate your loft properly.
* Make sure your smoke alarms and carbon monoxide alarms are in full working order.
* Show every adult and teenage member of the household where the stopcock is, plus where to turn off electricity and gas supplies in case of emergency.
* Keep a list of useful numbers handy in case of emergency. Include your plumber, gas installer, electrician and doctor.

Whether your home is one you own yourself, or a rented property, we all have to take responsibility for the effects of extreme weather.  Landlords of rented properties should also show due diligence in making sure that the above checks are carried out on their properties both to avoid additional expense to themselves and discomfort and inconvenience for their tenants.

Here at Martin & Co in Chichester, we can give advice on the types of precautions you should take and also who you can call if you need help with any of the suggested actions. We want all our tenants to be happy and comfortable in their homes throughout the winter, together with ensuring our Landlords get the steady income from their rental property with a minimum of hassle.  Why not give us a call on 01243 887887 to find out how we can help you? 

Important changes to Landlord taxes

As you may have read in the press recently, radical changes to rates of tax paid on rental income have been passed by Government, and are set for implication in 2017.

Higher rate tax payers who own buy-to-let property, and on which there is a large mortgage, will pay substantially more tax. Current base-rate tax payers may also suffer, as the changes may push them into a higher tax bracket.

Those worse effected may see the actual tax they pay on their investment rising two-fold (or more). Some will also see their tax payable rising above 100% meaning all of their profit is paid in tax, or worst still, the level of tax pushing them into making a loss - resulting in a landlord having to raise rents or exit the market altogether. 

The mechanics of the changes are that a landlord will lose the ability to deduct their mortgage interest from the rental income when calculating profit. This means that the Chancellor wants to tax landlords on their turnover rather than profit, meaning, in effect, that tax will be paid on non-existent income.

The easiest way of explaining the changes is by showing a worked example...

Mr Landlord is on a 40% rate of income tax, and has a property that brings in £1000pcm. His mortgage interest comes to £750 per month.

Currently this means he will pay 40% tax on the difference between his rent and the mortgage interest i.e. £250 difference (profit), less 40% tax (£100) = £150 per month profit. 

However the changes mean that the 40% tax will be applied to the whole rent (less a new 20% tax credit calculated on the mortgage interest)  i.e. £1000 rent received, less 40% tax (£400), plus 20% tax credit based on £750 mortgage interest (£150), less the £750 mortgage interest = ZERO profit per month.

Landlords with properties without mortgages will be unaffected. These changes, coupled with the prediction of interest rate rises next year could mean that now is an excellent time for landlords to review their financial affairs. 

Buy-to-Let Deal of the Day - Modern and Low Maintenance Two Bedroom Apartment Offering 5.2% Gross Yield

Whilst having a look through the latest Rightmove listings this morning I noticed a modern two bedroom apartment on the market with Whiteheads estate agents...

http://www.rightmove.co.uk/property-for-sale/property-37035192.html

The flat is located in Whyke Marsh, which is the development you can see on the left hand side of the road, just before the Selsey roundabout, when travelling eastbound on the A27.

Built in 2011 by Persimmon Homes, the flat looks extremely well looked after, and would be ready for letting upon completion of the purchase. An investor would also have the comfort of the remainder of a 10 year house builder guarantee on the property.

In terms of rental return, properties in this block have been known to fetch as much as £850pcm, however I feel £795pcm is more realistic. The property would attract a working couple, young family, or possibly professional sharers.

An asking price of £185,000 sounds fair and realistic, and coupled with the internal decorative condition, I wouldn't expect this apartment to be on the market for very long.

Based on a £795pcm rent the flat would return a very nice 5.2% gross yield.

As with all leasehold apartments, it is important to obtain a full breakdown of maintenance and service charges, as these will all have an impact on your net return.

Buy-to-let deal of the day - Excellent investment property providing serious capital growth

As a landlord, it is very easy to become too focused on annual rental yields, rather than capital appreciation over time. 

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!  

Remortgages are on the up

With mortgage rates currently at a record low it is widely expected that rates will soon begin to rise, meaning that it could be a good time for landlords to consider remortgaging. 

Figures from the British Bankers Association indicate that many landlords are reviewing their options, taking advantage of competitively priced offers, and securing fixed rate deals before they disappear. 

As well as protecting against Base Rate increases, the competitive nature of the mortgage market may mean that landlords can actually cut their mortgage costs now.

Assuming a base rate increase in spring 2016, it is likely that we may actually see interest rates gradually rise before then – so remortgaging a day before the base rate increase won’t be a good idea!

Our office has teamed up with London & Country to offer fee-free Independent Mortgage advice, so now may be the time to consider your remortgage options. Please give me a call on 01243 887887, and we will be happy to put you in touch with one of their expect advisers. 

YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Rents Rising in Hay Road, Chichester

A landlord I know has owned a few properties on Hay Road for the last fifteen years. She came in to our office to discuss the rise and fall of property prices on the street and how this has affected her yield over the years.

In 1999, when she purchased her first property on Hay Road the average value of a terraced house on the street was £76.950 which had a sharp rise to £146,250 by 2004. This rise in value continued, with average values being £174,950 in 2008 and £181,500 in 2011.

At the height of the property boom in this area in 2007, a semi-detached house on Hay Road had an average value of £224,975. This dropped slightly in 2013 to around £221,660, with the average value increasing to around £232,500 this year.

When she told me of the rents she had achieved on the street, they seem to have steadily risen over the last 10 years. In 2006 the average rent was £800 per month for a three/four bedroom house, and is now around £1200pcm, dependent on the property’s accommodation. Therefore, a landlord could expect a respectable annual yield of around 6.2% on Hay Road at the moment.

If you would like some free and impartial advice with a potential investment, please come and see me in our offices at no.12 Southgate, call 01243 887887 or email matt.berry@martinco.com

Is Roussillon Park a good development for buy-to-let investment?

As you may already be aware, Roussillon Park is a new housing development to the north of Chichester City centre on the site of the historic former military barracks. Previously the home to Royal Sussex Regiment and Royal Military Police, the site is being redeveloped to provide 250 new dwellings.

It generally takes a short amount of time to let properties on the developments. Tenants consider the proximity of the city centre to be an advantage, as well as the luxury of living in a new property. A two bedroom coach house, depending on size and outdoor space, could be purchased for around £280,000 or £290,000. The rents that could be achieved for these are between £975 and £1000 per month. This means landlords can potentially expect yields of around 4.3% per year.

Two bedroomed apartments can be purchased between £260,000 and £270,000 and they typically can let for between £900 and £950 per month. There is usually the service charge that a landlord needs to pay to the freeholder of the building, this usually includes building insurance and grounds maintenance. Even after paying that service charge, yields of between 4% per year are achievable.

If you have already done a search for property or are trying to figure out where to start, we’re happy to advise on properties before you buy. It’s in your interest that you purchase something that can let, so please give me a call on 01243 887887 or visit our office on Southgate. 

Developers website - http://www.roussillonpark.co.uk/

How can you find a good property deal in Chichester?

How can you find a good property deal in Chichester?

I was talking to one of my landlords the other day, when he explained there were no property bargains for him to buy in Chichester. We don’t sell property and don’t charge for our advice, so we can give impartial opinion without any conflict of interest to our landlords. Here is what I discovered recently about finding bargains that I have come to the property market over the last few months.

A 1 bed apartment in Henty Gardens (just off Westgate) sold in 2008 for £160,685. In July this year, she sold again for £150,000, a drop in value of 6.65%. A 2 bedroom apartment in Wolfe Close (just behind the Nuffield Hospital on Broyle Road), sold for £245,000 in May this year. When new, it sold for £249,950 in summer 2008, these are excellent value properties.

Finally, one of the popular retirement apartments, opposite the train station on Stockbridge Road, sold for £285,950 in 2004. Considering property values in the area are much higher of those being achieved in 2005, some lucky person picked up a real bargain in May, when it sold again for £240,000.

Whether you are a landlord of ours or not, drop by our offices at 12 Southgate, Chichester if you would like any advice whatsoever. 

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.

The Rise of Adelaide Road's Property Prices

A landlord I know has owned a few properties on Adelaide Road for the last fifteen years. She came in to our office to discuss the rise and fall of property prices on the street and how this has affected her yield over the years.

In 2000, when she purchased her first property on Adelaide Road the average value of a house on the street was £103,750 which had a sharp rise to £187,737  by 2003. This rise in value continued, with average values being £211,000 in 2005 and £234,112 in 2006.

At the height of the property boom in this area, a terraced house on Adelaide Road had an average value of £256,650. This soon dropped in the recession of 2008 to £195,000, with the average value increasing to around £267,500 this year.

When she told me of the rents she had achieved on the street, they seem fairly stable over the thirteen years. In 2002-2003 the average rent was £750 per month and is now between £950 and £995, dependent on the property’s accommodation. Therefore, a landlord could expect a respectable annual yield of around 4.5% on Adelaide Road at the moment.

If you would like some advice with your potential investment, please come and see us in our offices.

Buy-To-Let Deal Of The Day - Modern Apartment Could Return a 5% Yield

This one bedroom ground floor apartment close to St Richards Hospital and Chichester University could make a great buy-to-let investment. 

http://www.rightmove.co.uk/property-for-sale/property-51642809.html

On the market at £159,000 with Chichester Estate Agents, Charles Peck, this property appears to be very well looked after and tastefully presented throughout. With a very modest maintenance charge "in the region of £360 per annum" this property would fetch £625pcm on the rental market.

With a bit of savvy negotiation on the asking price this property could bag an attractive gross yield of 5%  

Buy-To-Let Deal Of The Day - Three Bedroom House Near St Richards Hospital

As the majority of landlords in Chichester will know, one of the main employers of tenants in the city is St Richards hospital. Doctors, nurses and administration staff register their property requirements with us on almost a daily basis, and as a result any properties close to the hospital are quickly snapped up.

Therefore, as a buy-to-let investment, a modern three bedroom house on the hospital's doorstep could be an absolutely cracker!

http://www.rightmove.co.uk/property-for-sale/property-35380875.html?premiumA=true

On the market with Zone Estate Agents at £299,950 this property would fetch around £995pcm in rent, generating a gross yield of just over 4%. Offered in immaculate condition throughout, there would be minimal outlay required to get the property ready to let. Couple this with the constant tenant demand in the area, a landlord would be at zero void periods between tenancies. 

Which semi-detached property should I buy in Chichester?

Which semi-detached house should I buy in Chichester? One of our landlords asked if they should buy a 3 or 2 bed semi-detached property to rent out to tenants. The first question I asked them was what was are they looking for from the investment - capital growth in the property or a good yield?

Answering this question will help you figure out which properties you should buy...The average asking price of a 3 bed semi in Chichester is £348,500 today compared to £326,000 for a 2 bed semi. The 3 bed semi achieves an average rental price of £1200 per month compared to £950 per month for a two bed semi.

That’s a yield of 3.5% for the 2 bed against 4.1% for the 3 bed. So surely, the 3 bed semi is the better bet? Well it does offer a better rate of return, but the 2 bed semi is slightly easier to rent out (less void periods) and the lack of 2 bedroom houses on the sales market compared to 3 bedroom semi’s (12 x 2 beds versus 44 x 3 beds) indicate that these will be easier to sell in the future.

If you would like more information please give me a call on 01243 887887

Maisonette Offering 5.3% Gross Yield...

I spotted this one bedroom maisonette this morning whilst looking through the latest property listings on Rightmove. Conveniently situated near to the pedestrian and cycle track which takes you to the train station, this property would be ideal for those commuting Monday to Friday. Similar properties nearby rent for between £550 and £595, depending on internal condition.

http://www.rightmove.co.uk/property-for-sale/property-50556910.html

Cubitt and West have the property on the market at £130,000, so if we assume a mid-range rental figure of £575pcm you are looking at a potential annual return of 5.3%, much better than you are getting at the banks at the moment.

If you would like any advice on buying a property to let, please feel free to give me a call on 01243 887887.

Chichester Property Boomers

Last month we discussed the rise of Chichester property values.

This week I thought it would be interesting to put some 'meat on the bones' and show a selection of properties that have demonstrated impressive capital growth over recent years. Figures courtesy of www.mouseprice.com :

Recent market activity 

Previous
sale pricePrevious
sale dateRecent
sale priceRecent
sale dateChange
(%)AER
(%)Address
 

£86,00025 Apr 08£250,00014 Jan 15190.70%17.19%Shippam House East Walls

£295,00010 Sep 13£370,00002 Mar 1525.42%16.61% Whyke Lane

£95,00018 Jan 13£130,00030 Mar 1536.84%15.36%Brampton Court Stockbridge Road

£280,00002 Nov 12£392,00013 Apr 1540.00%14.76%Salthill Road

£230,00006 Mar 09£485,00015 Apr 15110.87%12.98%Graydon Avenue

£95,00021 Dec 99£531,70622 Jan 15459.69%12.08%Westgate

£290,00031 Jul 13£350,00027 Mar 1520.69%12.03%Homestead Road

£140,00015 Sep 09£239,95016 Mar 1571.39%10.29%Maplehurst Road

£125,00016 Jan 13£150,00023 Feb 1520.00%9.05%Florence Road

£170,00023 Feb 11£237,95006 Mar 1539.97%8.70%Barnfield Drive