Buying council property

ALLI · 20 Dec 2007 at 00:33

As a tenant, we're going through the right to buy scheme and purchasing our flat from the council. Valuation came through today. 44k!

Plan is to rent it out, as it's a town centre location, the block is superb and our neighbours are all long term residents and the place would be ideal for renting. After 3 years we can sell it. First dibs go to the council who will buy at market value (so...3 years time, large 2 bed flat with balcony, should easily double our money). Not a bad investment if it all goes to plan.

Anyone bought and sold their council property?

KNiVES · 20 Dec 2007 at 00:38

Moses99p said:
Sounds a bit wrong that you can use your right to buy, but then instantly move out somewhere else and use that right to buy to make a bunch of money. In my view that's an abuse of the system. Meh.

No, it's business. In fact, I'd rather do that to the council than anyone else.

The Pat · 20 Dec 2007 at 00:40

KNiVES said:
No, it's business. In fact, I'd rather do that to the council than anyone else.

Agree with that, they wouldn't have any problems trying to get one over on you if they could.

KNiVES · 20 Dec 2007 at 00:41

You have a point, but if the council are allowing homes to go under the right to buy scheme, that usually indicates low council housing demand in the area.

ALLI · 20 Dec 2007 at 00:41

Moses99p said:
Sounds a bit wrong that you can use your right to buy, but then instantly move out somewhere else and use that right to buy to make a bunch of money. In my view that's an abuse of the system. Meh.

Err, we cant sell it for three years. That's hardly instantly.

I don't see it as wrong. Especially if they buy it back off us. Even if they don't, I'm sure a huge 2 bed flat for 90k or so would be snapped up by someone trying to get onto the property market without having a stupid sized mortgage for a dinky sized property.

ALLI · 20 Dec 2007 at 00:43

Moses99p said:
Don't you think council housing should be there for the needy though, rather than people buying a council house (at a nice price one would assume) and another house, so they can rent out the council one.

I used to think that. Now I just see it as an affordable place to stay. Someone in another thread mentioned their monthly rent was over 1k! Ours is £170 pcm.

Sarduk · 20 Dec 2007 at 00:46

Moses99p said:
Sounds a bit wrong that you can use your right to buy, but then instantly move out somewhere else and use that right to buy to make a bunch of money. In my view that's an abuse of the system. Meh.

Agreed

James07 · 20 Dec 2007 at 00:47

ALLI said:
Anyone bought and sold their council property?

My dad bought his for 57k or something and sold it for around 120k.

Stupidly sold it, most of it went to debt collectors..

Sold it after around 3 years.

Them houses are usually well looked after and usually remodernised every 20 years or so so always kept up to date.

Sometimes in nice areas like mine was, - BD157EX

James.

ALLI · 20 Dec 2007 at 00:48

Moses99p said:
You're surely not "getting one over" on the council by lowering the available council housing stock :\. Just means less people can get council housing.

Sure, councils are generally useless in many of the things they do, but that doesn't mean you have a right to abuse a system, surely? I guess the right to buy scheme was introduced because it's the only way some people have of buying a house, and they wouldn't have to move to some random place to buy one but stay in the same place. Buying one with the in order to move somewhere else and rent it out just seems wrong.

I don't think right to buy was set up to "get one over" on the council. All local authorities offer the scheme to people living there for 3 years +. There's so many estates that have empty houses and have had for years - there's no shortage of council property available, but because it's 8th floor they cant offer it to the elderly of disabled incase the liff breaks. Similarly they cant offer it to young families. It's a particularly narrow spectrum of possible tenants.

I can see your thinking though.

Things change I've changed · 20 Dec 2007 at 00:49

makes me sick to the teeth people that buy their council property on a 'right to buy scheme' and then just make a business out of it, it's blatantly cheating the system, it's people that are doing this that are making it hard for people that are in desperate need of housing.

The Pat · 20 Dec 2007 at 00:52

Moses99p said:
You're surely not "getting one over" on the council by lowering the available council housing stock :\.

Was referring to your abuse of the system comment.

Moses99p said:
In my view that's an abuse of the system. Meh.

Sometimes sticking it back to the people sticking it to you is the only justice you will get.

Moses99p said:
Just means less people can get council housing.

KNiVES said:
You have a point, but if the council are allowing homes to go under the right to buy scheme, that usually indicates low council housing demand in the area.

ALLI · 20 Dec 2007 at 00:52

Moses99p said:
Aren't you gonna move out somewhere else and just rent out the council house to pay the mortgage? That was the impression I got.

Depends how things go. As a non-council resident we'd have to pay service charges. A bloke we know bought his place and rented it out, then they replace the lift and life mechanism. He was asked to pay 6k towards the cost as his "share" of the upkeep of the building. At the moment I'm still studying and have a year and a half left, so it would be silly to move out when our current rent is £170. I'd be crippled financially and probably have to drop my course.

Let's swing it round. If you were in my shoes, you'd do it wouldn't you?

Johnny Girth · 20 Dec 2007 at 00:52

Yep, right to buy is a load of nonsense. No one has the right to buy at the expense of the council. If you can afford to buy at the market value and if they council feels they will benefit from selling then by all means go ahead and buy/sell.

ALLI · 20 Dec 2007 at 00:54

lowrider007 said:
makes me sick to the teeth people that buy their council property on a 'right to buy scheme' and then just make a business out of it, it's blatantly cheating the system, it's people that are doing this that are making it hard for people that are in desperate need of housing.

There is no shortage of housing here. There is only a shortage of people who fit the right criteria for housing. And that's the council's doing, not mine.

Right to Buy was set up to allow people to get onto the property ladder. That is what I'm doing. How can a legitimate scheme, be cheating the system?

Things change I've changed · 20 Dec 2007 at 00:55

Moses99p said:
The very fact you are gonna rent it out once you buy it shows there are tenants that want to rent. If there aren't enough people in need of council housing in a specific area then the council should rent it out to joe public rather than selling it to someone and letting them rent it out to joe public.

wow I never agree with anything you say usually but on your right on the ball in this thread, I haven't visited an area yet that isn't in desperate need for council property's because atm the nation is flooded with secound homes owners that our charging stupid amounts of money for renting taking advantage of housing shortages.

GarethDW · 20 Dec 2007 at 00:58

Let's get this straight.... you're not "getting one over" against the council - less funds in their coffers mean less money to spend on other things required within the borough, ergo council taxes increase to subsidise the fact you're "sticking it to the man".

Things change I've changed · 20 Dec 2007 at 00:59

ALLI said:
There is no shortage of housing here. There is only a shortage of people who fit the right criteria for housing. And that's the council's doing, not mine.

Right to Buy was set up to allow people to get onto the property ladder. That is what I'm doing. How can a legitimate scheme, be cheating the system?

yes your right, the system is designed to help people get on the property ladder, it's not designed for you abuse it by moving out of that property and turning it into a business by charging triple/quadruple the rent of a council property, it's not designed to start peoples business ventures.

GarethDW · 20 Dec 2007 at 01:01

ALLI said:
Right to Buy was set up to allow people to get onto the property ladder. That is what I'm doing. How can a legitimate scheme, be cheating the system?

So you'll be buying the property and letting it out, which means you'll be renting somewhere else privately as your own home will now be lived in by some tennants.

If you can afford to pay private rent then you shouldn't be living in subsidised council property in the first place.

ALLI · 20 Dec 2007 at 01:05

No, I'm not taking any offense whatsoever.

As I mentioned, it's quite a niche property, being 8th floor. No-one's missing out. I can drive round a number of housing estates and find dozens upon dozens of vacant properties. There is a shortage of tenants if anything. If I buy at 44k, that's 44k the council get straight away.

Anyway, I can see we're not going to agree, but that's fine. I'm happy with what I'm doing. I'm breaking no law and it's all by the book. I'm sure the big test will be when I do want to sell, and see how quickly it goes.

ALLI · 20 Dec 2007 at 01:10

GarethDW said:
Let's get this straight.... you're not "getting one over" against the council - less funds in their coffers mean less money to spend on other things required within the borough, ergo council taxes increase to subsidise the fact you're "sticking it to the man".

Aren't most councils inept ANYWAY?

Par example. The main dual carriageway out of town had faded double yellow lines. They burnt them off and re painted them. Then they decided to make it a red route, so burnt off the yellow lines and put double red lines. Now they are saying that taxis and buses need to stop on the route, so they are going to burn off the red lines and repaint the yellow lines.

I'm not buying ALL the council properties in the city. I'm buying one flat... lol!!!