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