Invest in Ex Council flat or NON council Flat

Tngwenya

Hi all

I’m a first time buyer looking into investing in my 1st property and buying a flat and renting out 1 room (lodger).

I’m buying in Scotland where council flats usually have more value as in space and quality of build etc.

However I’m not sure whether I should get a long ex council flat as it cheaper to buy but I think harder to sell after few years.

Or get a flat that’s not a council flat, almost double the price but will be easier to rent out and sell.

I worry about the expenses imposed by council for maintaining for a council flat

Ex Council flat or NON council Flat

Thank you

AdrianC

I'm sure the choices aren't quite as simple as "ex-council for £X or non-ex-council for £2X"...

davidmcn

It's really going to depend on the specifics - there are "good" ex-council areas and "bad" ones, and plenty of privately-developed neighbourhoods which aren't that great (whether we're talking demographics or build quality). I would focus on other things rather than who originally developed the block.

Moneyminded

You say that ex-council properties have more value as they are bigger and a better build quality but they are cheaper to buy and harder to sell. I'm not sure that makes sense to me.

Either way I wouldn't let the ex-council or not status determine where I choose to buy. Have a look at a few and buy the one you want to live in, provides a decent commute to work, would be a good place to attract a lodger and gives you what you need in terms of space and nearby amenities.

AdrianC

Moneyminded wrote: »

You say that ex-council properties have more value as they are bigger and a better build quality but they are cheaper to buy and harder to sell. I'm not sure that makes sense to me.

Ex-LA properties have significant downsides, too. There is a reputation for the risk of large maintenance charges. There is the potential social stigma over the location, together with a potential increased risk of neighbour issues.

Puflet

Moneyminded wrote: »

I wouldn't let the ex-council or not status determine where I choose to buy. Have a look at a few and buy the one you want to live in, provides a decent commute to work, would be a good place to attract a lodger and gives you what you need in terms of space and nearby amenities.

What Moneyminded said ^^^.

scottishblondie

You need to take every property on a case by case basis, rather than generalising them into council and not ex-council, because it really isn't as simple as that.

We own an ex-council flat in a block where the council are still in the majority (16 council vs. 14 private owners). I foresee no problems in selling it as they are always very popular when they come up. We currently have it rented out to the same tenant for the last 5 years, and we had no shortage of potential tenants. The big issue is with an ex-council property where the council are still the factors is the potential for expensive repairs - we've paid out in excess of £10k for works including a new lift and major facelift of the common areas. Prior to my husband buying there was also a £12k per property bill for a new roof and other external works.

These works were all needed, but with the council as the factor we had huge concerns over the tendering process and didn't feel that we got a good deal. Perhaps strangely, we actually considered buying another property in the same block as an investment a few years ago, purely because we knew that most of the major works had already been done on the building!

We also have a rental property in a modern fully private block. 2 years back we had to pay out £11k for major works on that building that were absolutely necessary in order to prevent it from literally falling down. I had a lot more confidence in our private factoring firm and their tendering process than I did with the council, but it was still a huge amount. Buying in a private block is no guarantee of not needing to spend a large sum on it.

RelievedSheff

AdrianC wrote: »

Ex-LA properties have significant downsides, too. There is a reputation for the risk of large maintenance charges. There is the potential social stigma over the location, together with a potential increased risk of neighbour issues.

I would agree with the above.

Our last house was an ex council semi detached and we would never buy another one.

The build quality was not brilliant, sound insulation between properties was non existent, the estate was ruined by a handful of scrotes (although this could happen anywhere), people had very little respect for the properties or the neighbourhood.

We are so glad that we are out of there.

AlexMac

RelievedSheff wrote: »

I would agree with the above.

Me too.

I've had absolutely no problems with my two little ex-Council flats in the 20 and 9 years of ownership- but then,
- they're both local, in areas I know well,
- with good rental demand and % return as they are ideal for commuters ( " London Transport Zone 3 " if that means anything to other softy-southern Sassenachs) and
- a Local Authority freeholder who treats its many leaseholders well; service charges of around £600 p.a, and a few entirely reasonable bills for about £4-5k for major repairs - external decs or new windows - every 7-8 years.

But I wouldn't touch a system-built tower block or one with lifts or cladding; my two are in low rise, three storey blocks with conventionally constructed brick walls and tiled roofs