7% Yield in Lower Darwen, is that good enough? You could do better....

I love Lower Darwen, it's one of those areas where you can't go wrong as a landlord, or can you?

Perfect Location
It's a nice little place just in-between Darwen and Blackburn, close to some good schools and more importantly smack bang between two motorway junctions - 4 and 5 of the M65, plus loads of other attractive attributes of potential renters.


10% Yield Minimum
To date, every property we have on our books delivers over 10% yield for my landlords, and some give double that! but that's for another day.

Deal or No Deal?
Anyway, Ive just come across a little cottage that's being advertised by two estate agents in Darwen, which in itself raises questions in my head.... why would someone have 2 agents marketing the same property at the same time? It's probably the worst thing you could do as a seller, because this does nothing at all to motivate either agent. It goes right to the bottom of their list! Plus it will giv out the wrong signal to buyers, which is the seller is desperate to get rid. So assuming the latter is correct my ears prick up because we have a potential deal on the horizon, or do we?

Deal or no deal for us Landlords?

http://www.zoopla.co.uk/for-sale/details/35179591#VjWbejD77Smbgy4r.97


Let's look closer...
As I mentioned earlier, all my Lower Darwen stock delivers 10% or more. So what's wrong with this one? Well, I think we'd struggle getting above 7% on this one, for a variety of reasons, unless we can get a cheeky offer accepted.

I personally think it's too much money at £72,500, after-all you only need to look at what's available on Rightmove or Zoopla for that kind of money to see for yourself.

Always be mindful of your exit before you buy
Given where this cottage is situated, which is on a very busy road, with narrow footpath and difficulty parking, that's why I think I'd struggle to deliver above a 7% yield on this little baby, assuming we paid the asking price. Even then, as I always say to all my Landlords, we must always consider the exit on a property before you buy, and selling this in the future could well be a challenge. So worth keeping an eye on how the two agents selling this one perform?

Low voids & happy with 7%?
On the upside, whilst it might be in a tricky spot, if you're happy with 7% then it's worth a look, the demand in Lower Darwen is such that it should be full all the time with very few void periods.

Go on, make a cheeky offer, but don't tell them I sent you though ;-)

If you see anything else in Lower Darwen, why not send me the Rightmove link to paul@ainsworthlordestates.com and I'll let you know my thoughts. Or bob into my office in Darwen town centre.