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Ex-council redbrick or high-rise which is a better investment?

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cherryberry2
cherryberry2 Posts: 3 Newbie
edited 24 April 2016 at 11:33AM in House buying, renting & selling
I am a first time buyer interested in 2 ex-council properties in battersea, both near nine elms and Battersea power station. The highrise ex-council flat is very large and spacious but on 12th floor of a 20 story block. The redbrick ex-council flat is on 3rd floor of 4 story block, it is a nice flat but very small. The high rise flat is nearly double the size of the red brick. Does anyone have experience with buying ex-council properties? can you advise which will be a better investment. I am looking into ex-council because i cannot afford other types of property in the area. any advise will be appreciated. thanks
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Comments

  • kinger101
    kinger101 Posts: 6,573 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    The one you want to live in. Having to move again is expensive.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • JoeCrystal
    JoeCrystal Posts: 3,335 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 24 April 2016 at 10:20AM
    Well, I think one of the biggest issues with highrise ex-council flat is potential massive bills since you are liable for the share for the work on the block. Have a look at this program for an example. http://www.bbc.co.uk/programmes/p03qg2gt
  • Caz3121
    Caz3121 Posts: 15,839 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If you not a cash buyer it will likely be more challenging to find a lender for the high rise as many lenders do not lend on them
    http://www.propertytribes.com/can-get-mortgage-on-flat-on-12th-floor-t-12042.html
  • Mr.Generous
    Mr.Generous Posts: 3,991 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    the management fees are the issue, we won't touch flats at all. If the managing agent goes bust you are left in limbo, if they put up the fees you have to pay.
    Mr Generous - Landlord for more than 10 years. Generous? - Possibly but sarcastic more likely.
  • cherryberry2
    cherryberry2 Posts: 3 Newbie
    edited 24 April 2016 at 11:38AM
    Thank you for your replies, it seems the high rise has more negatives, huge bills are definitely scary and not being able to get a mortgage would be disappointing as i am not a cash buyer, i was hoping to apply for a mortgage after conducting a lot of research as it will be my first property investment. I would be looking to live there for 1 year and then rent it out.
  • kinger101
    kinger101 Posts: 6,573 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    cherryberry2 wrote: »
    I would be looking to live there for 1 year and then rent it out.

    The bank would be unlikely to grant you consent to let under these circumstances, and may not be willing to offer you a BTL product. It's a rather foolhardy approach to property investment IMO.
    "Real knowledge is to know the extent of one's ignorance" - Confucius
  • Caz3121
    Caz3121 Posts: 15,839 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    cherryberry2 wrote: »
    I would be looking to live there for 1 year and then rent it out.
    Where would you be moving to at this point?
    What % deposit do you have? If looking at investment, it may well be the case that you would need to move to a BTL mortgage at this point which would mean having 20%/25%+ equity. There is no guarantee that consent to let would be given and, if it is, it may be for a limited time period
  • teddysmum
    teddysmum Posts: 9,521 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    There's also extra stamp duty if you buy a second property.
  • marksoton
    marksoton Posts: 17,516 Forumite
    cherryberry2 wrote: »
    I would be looking to live there for 1 year and then rent it out.

    Bonkers idea. That probably wouldn't be achievable anyway.
  • cherryberry2
    cherryberry2 Posts: 3 Newbie
    cherryberry2 wrote: »
    I would be looking to live there for 1 year and then rent it out.

    To clarify, I am getting married soon and would be moving in with my partner, thats why i plan not to live there very long.
    Also i will be putting down a very decent deposit (luckily my parents are helping), so hoping i could switch to BTL mortgage.
    I am new to this and from all the replies it seems i need to do more homework.
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