Belvedere. Hotspot for Investors?

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Crossrail is coming to Abbeywood!!!

I know this is old news, which most of you are aware of, and many investors have concentrated their efforts on investing in Abbeywood in anticipation of this; resulting in the Abbeywood property market soaring over the last couple of years – Zoopla estimates a 20.5% increase in property values in the last two years. However, this has also created a buzz elsewhere.

With a new two-level station being built (planning to open its doors in 2017) and the faster link resulting in journey times across London being cut dramatically, Abbeywood is set to be driven into a different housing bracket.

However, just like the ripple effect, Belvedere has also benefited from these new plans. Although Crossrail isn't coming to Belvedere, its railway station is just one stop from the  Abbeywood Crossrail Station and Zoopla have estimated that Belvedere has benefited from an increase of 17% in property values in the last two years.

One trick of the trade in the property market is that one can judge the affordability of an area by simply finding the ratio of the average property price to the average salary. The lower the ratio, the more affordable property is.

When we put this to the test, we found that Belvedere Currently has an average property value of around £226,800 with the average salary being £19,495. This gives it a ratio of 1 to 11.6. Meanwhile, in Abbeywood the ratio of property value to salary is 1 to 13.5, which suggests that properties in Abbeywood are 16% less affordable than in Belvedere.

In considering Erith, which is one stop further away from the new Crossrail station, I found that the average salary is £18,300, with the average property value being around £223,500. This means that, although Erith Railway Station is one stop further from Abbeywood than Belvedere, the property in Erith is 5% less affordable than Belvedere, with a ratio of 1 to 12.2.

This could mean that now is a brilliant time to invest in Belvedere’s property market, whilst the average value of property is low compared to the average salary.

If you would like to talk to us about any potential investment, please feel free to pop in or call our office.

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