9% Yield on Nancy St in Darwen? Is it as good as it seems? Paul Ainsworth Lord reckons it's overpriced by £10k

 Things aren't always what they seem....

There are loads of great investment properties being offered in Darwen by local Estate Agents. But are they all as good as they seem, I hear you ask?

And that's a good question, and it's an important one!

Well let me show you one that 'in theory' should give a nice 9% however the reality is likely to be somewhat different. Let me explain....

A quick look on Zoopla shows a 'nice potential deal' here on Nancy Street in Darwen at a nifty £46,500

But is it a good deal really?

check the link here:

Nancy St Deal

Nancy St Darwen

Nancy St Darwen

Now I have been modest on my rental figure at only £350pcm, and based on the sale price of £46,500 it stacks up at a 9% yield.

And in order to get the £350pcm on this street it needs to be nice inside. So on this one it will need a spend - probably £5k minimum. Which means it would stand you at £51,500 reducing your yield down to 8%. Now this still looks like a good deal.

BUT there are other things to consider too (on this street).

Firstly, you may have noticed this property is being offered sale by an out of town agent - Bridgfords in Blackburn. (Not experts on the Darwen property market). So take this into account first.

Secondly, I know this is too much for a property on this street. A quick browse on sold prices on this street will tell you this. (In my opinion this property is overpriced by at least £10k)

Thirdly.... and this is where the local knowledge comes in handy....
It's not in one of the best areas of Darwen and certainly not very popular either.

Fourth.. properties on this and neighbouring streets are very tough to fill (if you want a decent tenant), and believe me I know!

To get this house filled reasonably quickly it needs to be nice and priced right.

So whilst this looks a pretty decent deal at 9% the reality is you would probably end up with 7% or less after you take into account a rent reduction or incentive to get interest.. and don't forget to factor in void periods. It would be a stroke of luck to get this rented quickly after your tenant has moved out.

So.. factoring in voids... expect a more realistic yield of around 5%pa

Now if you're happy with a 5% return shouldn't you be looking at nicer properties in better areas? I think so.

Hope you find my opinions and comments useful, and if you see anything of interest, can I ask you call me or drop me an email to discuss it first (it doesn't matter which agent it's up with). I'm always happy to offer my twopenneth worth....

You know where I am...

Ainsworth Lord Estates 
49 Market St Darwen
Tel 01254 760660

Paul@AinsworthLordEstates.com

or call in for a coffee.... (we only do nice coffee)

Another cracking Buy-to-Let deal with 9.5% Yield on Lord Street in Darwen - It's a No Brainer!

Lord Street Darwen offering a Super Yield of 9.5% 

No need to think about this one, it's a no brainer. Just get it bought!

Talk about an opportunity coming along when you least expect it, well it's here and it's come a knocking...

Remember it's usually first come first served with deals like this one.

Well lads and lasses.... here's another cracking deal up for grabs from our Debs.

She picked this up the other day and what a cracker it is too.

The Landlord is selling his properties due to a change in circumstances. Lucky for one of you guys....

Here it is, click here:  Lord Street Darwen

Put simply, there's nothing to think about with this one. It's got what I call a 'Super Yield' which is anything above 8%.

It's another that we found the tenant for a couple of years ago. The tenant has looked after the house and always paid the rent on time.

Lord Street in Darwen

The house is in good condition and there aren't any obvious signs of any work needing to be done.

Sorry this is a brief one, but if you want to know anything else, or want a chat about anything else you've seen - no matter who the agent is, why not bob in for a brew and a chat.

Or just email me the details to Paul@AinsworthLordEstates.com and I'll give you my thoughts.

Then again you could ring me on 01254 760660.

Watch out for the next recommendation... (or register with your email address to be the first to hear).

Paul

Over £30k Profit up for grabs on this refub opportunity on Gillibrand St Darwen, from Estate Agents in Darwen

Another Golden Nugget found in Darwen

Well... Debs told me about this golden nugget she got today. 'I've got a cracker for one of your Investors' she said. So naturally, I wanted to know more.

And guess what, she's absolutely right! Vendor wants a quick sale, and looking at this little beauty, that won't be a problem!

So, let's take a look, and do the numbers....

http://www.zoopla.co.uk/for-sale/details/36089047

Golden Nugget on Gillibrand St Darwen

It's nothing fancy at the moment, and does certainly require a full refurb. But that shouldn't put off the experienced investor or tradesman wanting to embark on their first do'er-upper.

The potential returns on this one make it a bargain (or golden nugget, as I like to call them).


Needs to be a 3 bedder
Once done up to a 'nice' standard (not a cheap or bad job!) the resale price on this could be as much as £85k, but even more if made into a nice 3 bedder - finished well.

You'd be best speaking to Debs on any plans you might have for a job like this, and listen to what suggestions she has in order to get the best price on re-sale. Our general thinking is this needs to be made into a 3 bed house (it's big enough), as this is where the big bucks are!

Over £30k Profit - lets do the maths...
It's on the market for Offers Over £30k. So let's say you were a cash buyer (very important for these kind of deals), and bagged it for £32k. Then spent £25k on the refurb and then Debs got you £90k, this means you'd be left with a nice tidy profit of £33k.

Now do you see why it's a golden nugget? Do two or three of these a year and it's happy days.

My Verdict: Get it bought!

Nice little 8%+ yield on Hindle St Darwen from Debs at Ainsworth Lord Estates Agents in Darwen

We work together all day, yet some of the best property chats we have happens in the evening..... and Debs was telling me about one of her properties she has just reduced. So needless to say I have to take a look at it..

It turns out she has a nice little deal on Hindle St in Darwen, and it's just been reduced by 5k!

Here's the link to it on Zoopla...

Hindle St Darwen Click Here for details

8%+ Yield Plus Healthy Forecast for Capital Growth

Now, not only is this a nice tidy refurbed property, it's also one of those that would get snapped up pretty quickly if it was to come onto the rental market.(Well I might like to add some 'personality' feature colours just to help it along a little).

Given it's a 3 bedder in a decent area - classed as Sunnyhurst, the demand for this size of property in the Sunnyhurst Area couldn't be better.

Sunnyhurst is one of the best areas in Darwen and this part of town in particular has had a lot of regeneration happen over the last 6 years or so.

This area used to be purely traditional terraced stock, but as part of the Darwen Regeneration Programme a lot of the old sub-standard housing stock was knocked down to make way for more modern and efficient housing
with gardens and off-road parking etc..

Regeneration of Hindle St & Queen St Darwen

Not only has this regeneration cleaned the whole place up, but we've seen a definite positive impact on house prices in the immediate surrounding areas.

(For example on neighbouring Nicholas St we saw prices jump around 20k in some cases.)

I expect this trend to continue for the foreseeable future, on top of the natural increases we expect to see with house prices in Darwen

The new Houses they have built are selling for around £130-£135k. So when you think you can pick up a good-sized traditional terraced for half that, it makes sense to pay attention, and as none of the new-builds are going to go for rent due to private home ownership and shared ownership, anyone who buys and holds will see a healthy rise in price in the mid-to-long term.

Now, anyone who has ever lived in a new build house knows only too well that you can't swing a cat in them (not that you would, but you know what I mean). They're compact at best is what I'm saying ;-)

Can't swing a cat in one of these

However with traditional houses the room sizes etc are more generous, and demand for traditional houses is very strong - not only from buyers, but renters too.

So what are the numbers?

Well you need to offer over £70k for the property Debs is selling.

So... Assuming you paid £70k for it, and then we got you a rent of £495 pcm (per calendar month) that would deliver a gross yield of  8.5% - nice and bonnie! but assuming we only got say £475 you would still be getting a 8.1% gross yield. How's that sound? Not bad eh?

PLUS as a property to buy and hold, you would without doubt, see some generous capital  growth too.

My Conclusion: BUY!

But if you want to chat some more about this, why not give either Debs or myself a call on 01254 760660, or bob in for a coffee. Our office is in the town centre opposite Boots the Chemist and Your Move's office.
or ping either of us an email:

Paul@AinsworthLordEstates.com
Debs@AinsworthLordEstates.com