do houses grow in value more than flats?

[likeatonneofbricks]

generally, and in particular in good London areas (sw near the river). Are they a better investment long term? or if not whole houses, then maisonettes vs flats? I don't mean a large house but of around 600-650K in value.

All depends on the area and the percentage growth in that area vs what you invested

10% of a 600k house is 60k
20% of a 300k flat is 60k

You have made the same... in this market I think Location is more important than ever so a flat in a spanking location may give you a better return than a house in a less good location even though you have laid out more capital on the house. Making sense?

I meant in the SAME area, and if a house was around 650, but a flat would be say 450, what is better as investment taking into account care of the place - I'm worried that flats wouuld outgrow houses in percetage growth so you d get almost same returm on smaller investment?

I don't know official statistics of growth so that's why asking if anyone knows, especially for sw11 london.

it's pretty much what you said, spotty26, so the emphasis is on the area being same.

houses have uplifted more than maisonettes & flats
maisonettes better than flats

I think there is an oversupply of flats in many areas and always a shortage of family houses. If ready saleability is an issue I'd always go for a house if you can. Also leasehold flats often have costs you'd need to offset against returns - ground rent etc

This is stating the obvious but if you are talking about one area then percentage growth of a house bought for 650 would always be more than percentage growth of a flat bought for 450. If it is 10% in that area, you have made 65k rather than 45k. But I think houses have greater percentage growth than flats in an area such as sw11 because so many people are vying for the same small number of houses.

ooh, very encouraging re houses! obviously in sw11 the house wouldn't be a large family house for this price, maybe 4 bed (incl loft) and very small garden.
thank you all!

the issue is a bit complicated. The choice would be between a person buying a flat (not myself) or going for a house in shared ownership with a friend. Might start a new thread on the subject but the sgared thing puts off some people so it has to be for a much better return to offset various worries. Does anyone have experience or knows people who done that?

you'd be lucky to get 4 beds for £650K in SW11

If it is shared have they considered worst case scenarios? Break up /one needs to sell/new relationship etc.
I would go solo without a doubt. Choose good flat in good street.

Would the purchase require a mortgage? if so bear in mind that you'd be paying more interest on a loan on a 650k house than a 450k flat, so you'd need to take that into consideration in working out how much added value you'd be gaining.

campergirls, the person who'd be buying a flat otherwise, would be paying mortgage, but the person who adds to buy a house would pay cash. Again a better investment for the mortgage person - and maybe they'll get better rate of mortgage as deposit would be about one third!
People involved aer not young, but yes, there is an issue of breakup though i can't ese why it would be difficult to sell, apart from upheaval aspect.

if it wasn't clear two thirds would be covered by mortgage but I think it'd be a better deal for that buyer than buying a fully mortgaged flat for same amount?

In all my renovations the most I ever made was a flat