I was speaking to someone who lives just off Riverdale Road at the weekend, having lived there since the late 90’s they are now looking to make their first buy to let investment, and wondered if the area between Plumstead high street and Winns Common would make a good place to buy.
As they know the area well and both like and feel comfortable with investing there they just wanted to know whether or not the figures stacked up. They were predominantly interested in terraced houses as that is the type of property they live in and they knew some of their neighbours who rented.
House price growth in this area has, like most of SE18, been high over the last decade and there are some great examples of people who have had a good return on properties that they have bought. For example a 2 bed terrace on Riverdale Road itself which was purchased in 2007 for just £193,000 and sold recently for £310,000 – an increase of over 60%.
A 3 bed on Sladedale Road purchased in 2007 for £200,000 sold for £300,000 giving the seller – a 50% return.
Best of the bunch though was a 3 bed on Lakedale Road which was purchased for £190,000 in 2012 recently sold for £460,000 – a whopping increase of 142% in just 5 years! From the photos this was a very well turned out property which just goes to show what a bit of time and effort can achieve.
With rental figures for the area around £1125pcm for a 2 bed and £1375pcm for a 3 bed, yields around the 4.2% mark should be available, and as terraced houses, particularly 3 beds, often let to families there is a good chance of your tenants staying longer too.
If you are thinking of investing in the area why not get in touch: