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Buying in Clapham, ex Local Authority or modern purpose built?

(6 Posts)
AnnaFulhamMum Fri 15-Apr-16 19:37:56

Hi. My head is about to explode. I know so little about London property market being new to London and with busy job and family the thought of spending a few hours researching makes me shudder. Could anyone who knows a thing or two about property please give me some advice about investing in a 2 bedroom in Clapham which gives the best return when sold on in approx 8-10 years?

AveEldon Fri 15-Apr-16 19:40:52

Depends where... ex local auth in the middle of a big estate may not be a great bet
What is the price difference?

RNBrie Fri 15-Apr-16 19:42:11

Property prices in Clapham are insane so you'll be fine either way. Ex local authority can be risky due to the expense of any "major works" that come up so you need to investigate that properly.

Modern purpose built can be tiny but as long as bedroom sizes are similar and reasonable then you should be able to shift it easily enough in 10 years.

Are you planning on living it or renting it out? Are they both similar distance to transport links?

lalalonglegs Fri 15-Apr-16 20:01:07

I live in Clapham, if you want to give a rough idea where the properties are, I can give you advice. Generally, a LA flat will give a better return from the rent but won't increase in value as much. You may also find yourself stung by "major works" undertaken by Lambeth of which you would be liable to pay your share. Sometimes, LA flats are harder to get a mortgage for but their rooms are generally bigger and better laid out than new-builds.

RNBrie Fri 15-Apr-16 20:14:40

Increase in value for ex-LA depends on if there's much room to improve it. I made a fortune on an ex-LA flat in South East London over 5 years because it was gutted inside when I bought it and I renovated it completely. It far outstripped the increase in value of modern builds in the area at the time (during the financial crisis so property prices were pretty flat). You generally can't add much value to a modern build flat so you need to rely on market increase which I can't see as an issue in Clapham.

lalalonglegs Fri 15-Apr-16 20:34:11

Well, yes, if you're buying anything that needs renovation, you are able to add extra value but generally a LA flat's will increase slower over the 8-10 years that the OP wants to hold it than a private flat.

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