Property Update Camberwell - One bedroom flats in Lindwood Close, are they good investments?
There are over 14,897 flats in Camberwell a whopping 71% of the total housing stock in this postcode and also much higher than the average for the South East which lies at 57%. Nationally the figure is 17%. The average asking price of a 1 bed flat in SE5 currently stands at £330k and £425k for a 2 bed.
You can buy a one bedroom flat in the development in Lindwood Close around the £300k mark. This development allows for quiet residential living away from the bustle of the city. A 1 bed property in this location would rent for around £1150 per calendar month giving a gross yield of 4.6%. . However, you must remember that every landlord’s tax and interest rates are different, so it is essential to research your investment carefully before making any commitment but based on my calculation this property would still give a Return On Investment of approx 4.08% using a 75% LTV (Loan to Value) mortgage.
You only get the full picture when reviewing the increase in capital value of the properties in this location. As a rough guide a 1 bedroom property sold in September 2001 for £111k. Hunters are currently advertising a property for sale at £300k. That’s a 170% increase in value in fourteen years, which compares favourably with the area as whole which rose by an average of 176% over the same period. There have been a number of ups and downs in the market since 2001 bit it just goes to show that if you hold property over the long term you will make money.
If you would like some advice about what could make a good investment, please visit our offices .