LETTING & ESTATE AGENT

Ex-council properties in Chelmsford... Are they good Buy To Let investments?

Ex-council properties in Chelmsford... Are they good Buy To Let investments?
In previous articles we have found that ex-council properties can achieve good annual yields in the high 6% range. Yet their average values tend to stay quite stable when we compare this to the average capital growth on the more modern estates such as Chelmer Village, or more established areas such as Old Moulsham, which have had a more significant rise.

Saying this though, there are a couple of anomalies. If we look at the Melbourne area, a three bedroom semi-detached property on Melbourne Avenue sold for £210,000 in April 2007 and it was sold again earlier this year for £265,000, at a return of 26% in 8 years. Another example of good capital growth from an ex-council property is another three bed semi on Melbourne Avenue which was sold April of last year for £215,000, following an increase in value of around 34% in just less than a year.

These examples however can't be relied on as what happens generally in this area. There were many other properties that had seen increases in value of 6.7% in the space of a year (3 bed semi Melbourne Avenue) and another with a rise of 15% in  the space of 18 months (3 Bed semi on The Green). My belief is that the examples with large capital growth are down to the owners being able to pick up a decent sized property, in not so great condition, doing a lot of work to it to improve the condition & upgrade it and then selling on for maximum profit. These properties are becoming few and far between now. 

One of the best performing properties for capital growth in 2015 that I have spotted so far was bought in March 2012 for £173,000, and has recently sold for £230,000. This is a significant return of 33%. However, this was not an ex-council property - it was a Victorian terraced house on Marconi Road!
If you would like some advice about buying to let, please come and see us at our office on Duke Street.