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Ex-council properties in North Birmingham... Are they good buy to let investments?

12/01/2015

I have always been an advocate of ex-council properties, as they can achieve good annual yields of around 8-10% and I have personal a tendency to opt for these type of investment deals. However, the average value of these type of properties do tend to stay quite stable when we compare this to the average capital growth on the more modern estates such as New Oscott and Nether Hall Park in Great Barr, for example, which have had a more significant rise.

 

Nevertheless, a three-bedroom end terraced ex-council property on Kings Road in Kingstanding sold for £72,000 in March 2013 and it was sold again in September 2014 this year for £90,000, which is a return of 25% in less than 18 months. Another example of good capital growth from an ex-council property is a three-bedroom semi detached house on Tanhouse Avenue in Great Barr which was sold in October 2014 for £145,000, following an increase in value of around 16% in only 7 months!!

 

The best performing property for capital growth in 2014 so far was bought in April 2013 for £95,000 and sold in August 2014 for £130,000. This is a significant return of 36.8%. However, this was not an ex-council property it was a traditional semi detached house on Derrydown Rd, Great Barr!

 

Some of these properties are likely to have had some modernisation and improvements made to increase the value of the property, however with the right maintenance team on hand this needn’t cause too much of a dent in the wallet – in the property field its not always what you know, its WHO you know that make the difference.



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