Our first development project was in the now highly desirable Zone 2 area of Homerton, located less than 500m from Homerton Overground Station and under a 10 min walk from Homerton University Hospital.
This former council house boasted 3 bedrooms over 3 floors, and offered a large floor plan, with a nice terrace and shielded front garden. It was however in a considerable state of disrepair, and would require the buyer to completely refurbish the property in order to realise its potential.
The renovations to the property included the fitting of a bespoke kitchen, 2 new bathrooms, including knocking through a wall to make a new shower room, and general decorations throughout the property.
Our extensive research and knowledge of the local area allowed us to identify Homerton as an area of strong investment potential, and a significant level of investment has resulted in an increased gentrification of the area. This in turn has seen property values in the area double in 5 years and a high demand for accommodation in the local area, generating rental yields of over 10%.
Purchase cost: £242,000
Refurbishment cost: £28,000
Total cost: £270,000
2020 value: £500,000
Rental yield: 10.4%