Monday, 23 March 2015

Good investment in Brixton SW2 with 6.2% yield and great long-term capital appreciation prospects

Three bedroom leasehold flat in Tulse Hill. You may think “nah, too far away from the tube;” but think again! A property further from the tube represents good value as a purchase and potentially offers better uplift in value due to people looking slightly further out (affordability reasons). I predict that this property will rise in value more than one next to a tube, as a property like this (three relatively equal sized bedrooms) is in constant demand on the rental market making. It would be a great long-term investment because although it’s not currently in a sought after location, anything within 2 or 3 bus stops from the tube or train from a currently “desirable” area (on top of a tube) will soon become the same.

This particular property is on the market for £320,000 and with a predicted rental income of £380pw it represents a yield of 6.2%. A great yield and a great chance of capital gain over the long term.

For full property details click here:



Lambeth has seen nearly 20% average price growth last year in the North of the borough. When prices for typical first time buyer flats get up to around 12 or 13 times average annual income many people can no longer afford them so start to look further afield.  We recently sold 2 flats in Medora Road, slightly further out, to 2 such buyers.

We constantly have a steady flow of professional tenants who’s budget does not allow for them to be in their desired location (next to a tube station) but they still need to be within a commutable distance for work so have to take the next best thing,  The bus links to Brixton from here are excellent, and the nearby Sainsbury’s, pubs, cafes, restaurants and close proximity of Brockwell park mean there’s plenty close by to keep you busy. Commuting is easy too with Tulse Hill station whisking you to Farringdon in 15 minutes and round to King’s Cross in another 5; London Bridge is even closer.

A prime example of neighbouring areas having a positive effect on others is Stoke Newington as it has become exceptionally popular in recent times due to the likes of Islington and Shoreditch, all without the benefit of tube links.  Other areas especially in south London are set to follow suit over the coming years.

In summary a good long-term buy. The only way is up, and if it were my money I’d take a punt on something a bit further away. You may find better gains than something closer to a station.

If you are looking for any advice regarding lettings or acquisitions do get in touch on the phone 020 3397 2099 or pop in to our Clapham Office for an informal chat.

Elishah Anderson
Assistant Lettings Manager
XanderMatthew


No comments:

Post a Comment

Gazundering on the Rise: What South London Sellers Need to Know!

  Introduction Hey there, South Londoners! Are you familiar with the term 'gazundering'? If you're planning to sell your propert...

Popular Post!