Hello all
Inspired to start this thread after the Life in Dulwich thread. I have been in a dilemma on whether to buy in Blackheath, Greenwich or Dulwich. All areas I'd consider to be the most desirable in SE London.
I am drawn to East Dulwich as I love the high street and the more 'London' feel you get compared to Blackheath.
However, I honestly think East Dulwich is not a good investment area and I am concerned about the value. I am a FTB with a decent budget, but I will have a very high LTV mortgage so I need to make sure as well as being a home, my first purchase is a good investment.
I will try and give a live example. East Dulwich has experienced great house price growth in 7 years. But has it really? People seem to forget that if you bake in the sheer number of dwellings that have increased square footage via loft/back/side extensions, the house price growth isn't much more than the London average.
People in East Dulwich are fortunate in that the gardens are large by London standards, so there is scope to extend. But I know many people who have spent in excess of £200k doing loft and back extensions and then raving about how they have created £100k equity, when in reality in the period the works took (1yr +), that is just usual London HPI.
Good example here;
www.rightmove.co.uk/house-prices/detailMatching.html?prop=49806202&sale=54510284&country=england
Easily £250k spent on kitchen extension, bathrooms and loft. Probably even more given all that glass.
2012 Purchase Price - £875k
London HPI on 2012 Purchase Price - 51%
So without an work, that property may have been worth £1.3m
Not very scientific (double counting of the HPI element), but you get the idea.
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Help me decide where to buy in SE London based on value
3 replies
iloveinterior · 19/03/2016 10:20
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