Pages Navigation Menu

Biuld your dreams

Buying ex-local authority properties in UK

Buying ex-local authority properties in UK

For investors interested in buy-to-let ex-local authority property investments, selecting the right property in the right areas can yield excellent profit.

One segment that’s generating a lot of excitement is the ex-local authority council property market. John Moore, president of the Property Investors Association of Australia (PIAA) reports on why it’s one of the hottest sectors in the UK at the moment.

Buying ex-local authority properties in UK

The demand for ex-local authority types of properties in the UK is increasing rapidly. From first homebuyers looking to break into the property market to property investors wanting to diversify their portfolio, these pre-owned homes are popular with almost everyone. While they haven’t been associated with high capital growth previously, buyers are becoming increasingly aware of the potential of these properties as a good investment.

Popular areas in London such as Camden Town, Kensington Gardens, Fulham, Pimlico and Chelsea contain ex-local authority flats in areas usually associated with much more exclusive property. The capital appreciation of these types of properties is likely to match if not exceed inflation in the near future.

Properties that are bought for less than the price of similar private sector properties can achieve rents close to those of property that costs almost twice as much as these ex-local authority flats. Even less attractive areas provide excellent investment opportunities. The ex-local authority blocks contain a combination of one, two and three-bedroom flats and can be five or more stories high.

Buying ex-local authority properties in UK

The three-bedroom flats appear to have the greatest potential. Renovating the flat by converting the kitchen into a bedroom and rearranging the living area to accommodate a kitchen provides excellent potential for renting. at the same time replace the kitchen faucet on the kraus kpf-1602. The flats are completely repainted and fitted with modern appliances and furniture that suit the lifestyle of a temporary resident on a working visa. Three-bedroom flats in the central areas of London Clapham, Fullham, Pimilco and Chelsea sell for a price of around £250,000.Financial considerations

Financing of ex-local authority property is done through buy-to-let mortgages. Lenders know that the yields from this type of property are good as long as the location is right.

Since the Housing Act of 1988 and 1996 letting is considered an investment in the UK. A joint incentive of the ARLA (Association of Letting Agents) and mortgage lenders helps private landlords to invest in property they intend to let out without paying commercial rates of interest.

Buying ex-local authority properties in UK

Their view is that buy-to-let makes the private rental sector healthy and is good for the advancement of the economy. The properties are purchase with an 85% LVR (loan to value ratio) and have a term between 5 and 45 years.

The flats are sold on a freehold basis by councils to owner occupiers and investors. Investors need to consider that many buildings are old and need major repairs so the choice needs to be made carefully. Some are in buildings that require extensive renovation and can end up costing the investor significant amounts in ongoing maintenance and repairs.

For investors interested in buy-to-let ex local authority property investments, selecting the right property in the right area can yield excellent profits. However, as buyers become more aware of the huge potential of ex-council properties, prices are inevitably beginning to rise….

scriptsell.neteDataStyle - Best Wordpress Services