A landlord from Camberwell Grove came in the office the other day, after he had read that property values in certain parts of London had cooled over the past three months but despite this it was still hard to find a property bargain.  Knowing the Camberwell market as I do I thought I would delve into my database and show how individual investments outperform the market over the long term or not so long term as, in this case.  Finding the right property deal always requires a bit of patience, keeping to the property strategy you have developed along with sound fundamentals i.e. good school, transport, employment, etc.

Getting it right really can reap benefits though.   I have always passed on what I thought were good property deals in the local area.  Now with the power of technology, I have started to post these deals for everyone to see on my blog.  Looking back over my old records, before the blog,  I pulled out this property on Shenley Rd, a one bed property that sold recently for £350k on November 2014.  The property initially sold in October 2012 for £180k.  WOW! I hear you say that’s a 94% change in value.  This is all the more impressive when you look at how the Camberwell property market has increased over the same period, 32%,  which is another good capital growth figure.

Now we didn’t sell the property, so we don’t have the full details of the original sale or the circumstances and reason for the selling.   What we can say is that the property was taken from this rather drab look.

To this re-rendered property, re-landscaped garden, new kitchen and general property refurbishment.

If the property were rented out on a 60% LTV interest-only mortgage with a £30k refurbishment, it would have given you approximately a 6.67% gross yield based on a rent of £1000 pcm.

If you take a look at the return on investment figures an initial investment of £102k (60% mortgage at 3.5% plus £30k refurbishment) a ROI of 5.24% per annum could have been achieved on this property.  That’s without including the capital growth of 94%.

I’m always happy to talk with landlords and sellers about their refurbishment projects and whether their planned purchases are below market value. Why not give me a call or pop into our office?