Last Updated: 11/12/2017
Tags: Blog_Ex-Council Apartments
So… with this tug of war going on, how can buyers make the market work for them?
Simple, if you are a first- time buyer, look to the properties under the £500,000 mark. Courtesy of the recent budget you’ll save around £5,000 on Stamp Duty…or…. look at ex-councils in prime locations.
These often perceived, ‘ugly ducklings’ in the property world are swans in disguise.
So… What do you get:
- A bigger space for half the price.
- The same amount of rent as you would if paying close to double for a new build/period property in the area.
- Central location by a tube…location, location, location…appealing to renters and buyers looking for an easy commute.
- And lastly the possibility of renovating, means you can ADD value or simply have the budget to put your own stamp on the property.
A lot of these blocks have a split occupancy of private/ social housing. These so called ‘disreputable’ tenants have managed to buy their own homes, achieving great successes for themselves and their families. Tenants who have lived there most of their lives are community spirited, better than any ADT alarm, warm, generous, and kind people. Others have sold to private buyers who realised the benefits of the ex-local early, renting to young professionals, gaining good yields. Alternatively, they are owned privately by first time buyers or act as a base for those who work in town during the week before escaping to their country home at the weekend.
To date if you are insisting on historical 5% yields in central London, I wish you luck in your hunt for the pot of the gold at the end of the rainbow.
However, if you would consider ex-councils… currently on the market with us…to name just two …
Dodson Street - £565,000 Rents at £550 Yield of 5.06%
Boscombe Gardens - £425,000 Rent at £280 Yield of 4.48%
Otherwise these two have the potential to work, with a little negotiation…
Gipsy Road - £315,000 Rents at £280 Yield of 4.62%
Amigo House - £430,000 Rents at £370 Yield of 4.47%…Ole!
As we daily witness tectonic political shifts, it’s worth assessing the facts as opposed stoically clinging to out dated beliefs.