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  • Buy-to-Let

    Ex-council property suited to BTL?

    Hi all

    I have read several posts on here that say buy the worst house in the best road obviously area is important when investing. I just wanted to hear your views on ex council houses as a buy to let investment. 

    Thanks Tara
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    dont believe there is a set rule - all depends on the area, demand, type of tenant, etc...

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    Thank you the area is ok but not sure long term  but as you say that is probably the case for all areas.
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    Depends what. 
    I would say house or low rise (4 stories or under) okay assuming pitched roof. 

    High rise flats avoid. 

    And clearly depends on the estate. 

    For reference i own a 2 bed ex council but large 80sqm in zone 1. Worth aroubd 450,000 to 500,000, private flats 60sqm over the road going for 800,000+.  Once you take into account the service charge amount of rent obtainable per month effectively the same.
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    Expensive flats. I thought houses were outperforming flats.
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    All depends where you are.

    For zone 1 new build you are looking at £850k+ for a 2 bed even with the recent price reductions. Aside from Elephant and Castle where you can get one for £600k or so.

    Those numbers would be meaningless outside of central london.


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    Hi Tara,

    ​There is a thread of relevance here:

    Ex Local Authority flats - pros and cons?

    Some general thoughts:

    1.  Not popular with lenders

    2.  Stigma attached to them affects re-sale value

    3.  Due to trouble with getting finance, it limits your marketplace when you want to sell.

    4.  Tend to be bigger than private sector flats.

    5.  Good for yield, less good for capital appreciation imho.

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    Hi Vanessa
    I was really thinking of ex council houses. Is your opinion the same for ex council houses as it is for flats.
    Thanks Tara

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    My second purchase was a three bed ex-council semi. I bought it for £80k (forced sale to pay care costs), spent £8.5k renovating it. A tenant moved in the day after the renovation was complete, paying £560pm and has been there ever since.

    There are council properties I wouldn't buy, but that one has been great.

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    Hi Peter
    Can I ask what area you ought your property in?
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