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.
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.
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.
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!
would like some advice about buying to let, please come and see us at our
office on Duke Street.