Spurred on by the endeavours of my colleague Jazz who wrote an article on the Camberwell market it occurred to me to share a similar property I kept tabs on in Nunhead SE15.  Using Land Registry data, you can find average prices rose 45%  in the period April 2012 to September 2014 so I thought I would review this property on Brabourn Rd.   It was first sold in April 2012 for £207.5k and was then sold again in September 2014 for £337.5k giving the owner a cool 63% increase in value.

Finding a property deal that stacks up always requires a bit of patience, keeping to the property strategy you have developed along with sound fundamentals i.e. good schools, transport, employment, etc.  The key to your strategy should be to buy at a good price and then add value.  This Nunhead property is ideally located transport wise and would appeal to the young professional or couple, and therefore it would rent easily.

In this case, we don’t have the full details of the original sale in SE15.   What we can say is that the property has had some basic refurbishment work and that this has helped it outperform the area average. The changes to the property below look fairly superficial, the most obvious changes occurring in the garden, lounge and one assumes the bedroom and bathroom.

If the property were rented out on a 70% LTV interest-only mortgage with a £10k refurbishment, it would have given you approximately a 5.6% gross yield based on a rent of £975 pcm.

Looking at the return on investment figures on an initial investment of £73.8k (70% mortgage at 3.5% plus £10k refurb) a ROI of 5.17% per annum could have been achieved on this property.  That’s without including the capital growth of 63%.

We love discussing the market with landlords and sellers and hearing about their refurbishment projects.  Why not give me a call or pop into our office.