The team have written a couple of articles this week comparing locations in Camberwell and Dulwich. Not to be out done I thought I would throw in my own version for you all to digest. Culmore Road in SE15 is mainly made up of ex local authority housing with an average value of £352k compared to the properties on Talfourd Road which are mainly period housing stock whose average value is £640k.
The average rent that can be achieved on a 2 bed in Culmore Road is around £1250 per calendar month (pcm). A 2 bed maisonette recently sold for £285k in 2014 so the gross yield for this kind of property would be 5.3%. Two beds on Talfourd Rd on average will rent for about £1450 pcm giving a gross yield of 4.3%. Putting the two numbers together it looks like Culmore Road has outperforms Talfourd Rd by 23% in terms of gross yield.
But the rental yield does not paint the complete picture. We now need to take a look at the capital growth. You could buy a 2 bed in Culmore Rd in 2001 for £90k, the same property sold again in 2014 for £285k giving impressive capital growth figures of 216%.
On Talfourd Rd a 2 bed could be purchased for around £105k in 2001 and in 2014 for £400k giving a far superior capital growth of 285%
So when you look at it more closely and examine the overall growth you would have been much better investing in Talfourd Rd but it’s a risk relying on capital growth alone so always do your research first.
If you would like more information on investing in the Peckham property market, please call me or visit our offices.