£85k for 3 bed semi on Snape St (Top End) not bad? Refurb Renter opportunity here with Proctors - Estate and Letting Agents in Darwen, spotted by Local Property Expert - Paul Ainsworth Lord

Should I. Shouldn't I?

Finding decent refurb deals is getting harder and harder. Its famine or feast with these.

Now, this isn't a brilliant deal, but it's got potential..... as they say.

We've done loads this year for various clients, and helped many others with their own... just keeping them straight with a few tips here and there....

Could this be one for you?


Take a look, here it is, just click the link:

Potential Refurber to keep and rent out

3 Bed Semi Refurb & Keep?

It's not been on very long, and I doubt they'll be queuing round the block to snap this one up.

No Money in this? Or is there?

Most of the refurb investors/buyers like to get in do the work and get out again, take their profit and move on to the next one.But for these guys thee is no money on it when you look at what they bring when done up.

Here's Another Angle...

UNLESS however, you're one of those that is happy to buy, refurb and keep it and rent it out. If you are then this is probably one for you.


Purchase Price is £85k
Needs a healthy spend.. so lets say £15k
Stand you at £100k .

Rental income from his probably £600pcm depending on finish.

Yield: 7.2% 

That's not bad, given you shouldn't have (hardly) any maintenance going forward.

If you were down south you could get caught up in a fight for this sort of yield. Have I got you thinkng?

Second Opinion?
If you want to have a chat about this in more detail or hear a second opinion, why not give me a call or bob in for a coffee? I'm always happy to have a chat.... no obligation whatsoever..

Paul Ainsworth Lord
Local Property Expert

Ainsworth Lord Estates 
49 Market Street
Darwen
Lancashire
BB3 1PS

Tel: 01254 760660

or ping me an email:

Paul@AinsworthLordEstates.com

7.5% Return on your money with Natwest Bank, only at the Darwen Branch. Discovered by Paul Ainsworth Lord, Estate Lettings Agents in Darwen

Get 7.5% return on your money from the Darwen Natwest Branch. (or £500 per week)

Well, fellow Landlord Investors, we are always comparing the returns we get from property against what we can get for it in the bank.

 Well this last week I saw the for sale sign go up at our local branch of the Natwest in Darwen, and me being me, wanted to know how much it was up for. I though it mght be an ideal purchase for one of my other Landlords given we have all the flats above, so to have the ground floor as well would work nicely.

7.5% on with Natwest Bank, only in Darwen

 Lot 60 at the next auction

Cheaper than I thought.......
 
Well, to my surprise, to buy the bank wasn't as much as I had expected.

If you check out the auctioneers website and look at lot 60 you will see the guide price is a tidy £350k.

But is it as good as it seems, I hear you ask yourself?

 Is it really as good as it sounds?

£500 Sterling

£500 per week  in rent? Well, maybe, maybe not. It will depend on how much interest there is on it at the auction on the day. 

£500 per week, really?

As we all know auction rooms are somewhat unredictable and it's really a case of who's there on the day in most cases, but no doubt this type of investment is likely to appeal to some of the corporate investors wh like this kind of tenant. Let's face it the chances of the not paying their rent is slim to very slim at best.

What other factors are there to consider then?

I know for sure that with this building there are service charges for the building, and whilst these are not unreasonable they have to be factored in.

Secondly, the insurance for the building has to be paid by the tenants, and when we got the insurance renewal earlier this year it was (in our opinion) grossly over inflated - in fact insured for more than double it's worth. Needless to say we have appealed this.

Don't forget Management Costs

How long is the lease for with Natwest, how are the rent reviews structured, and are there any break-clauses? Who pays for maintenance? etc...



The thing is a lot of these costs are out of the owners control to some degree and challenging any of them is a mighty feat. 

 
So, whilst it looks pretty good at 7.5% should we all be running to the bank to buy it? After management company costs etc (details of which should be in the legal pack - available from the auctioneers), who knows?



The other thing to consider, which you should always have in mind before you buy any property, is the exit? Who would you rent it to next?

I'd say it would make a superb Starbucks!



If you'd like to chat some more about this potentially lucrative investment, why not give me a ring on 01254 760660
or ping me an email to; Paul@AinsworthLordEstates.com
or drop in for a coffee...

Ainsworth Lord Estates 
49 Market St.
Darwen, 
Lancs BB3 1PS

7%+ Yield on Richmond Terrace in Darwen. Needs a bit of work though. A good buy and hold?

I see that our friends at Proctors, one of the Estate Agents in Darwen, have just listed for sale this garden fronted terraced property on Richmond Terrace in Darwen.

Asking Price £55k - not bad, in fact - not bad at all. 

Needs a bit of work

Check it out, click here:  Richmond Terrace Darwen

"Looks a good buy to me for £55k"

I see from the pictures and description it has had a new roof not that long ago, so that's good news. But it does need a decent spend on the rest of the house.


Needs some work...

I reckon it needs a minimum of £10k spending on it, that's if you can do the work yourself? If you have to pay contractors then you can double it at least.

So £55k Plus £10k - it'll stand you at £65k And we'd get you a rent of anything from £400 - £450 depending on how good a job you do.

Rental Values:

At £400 that would be a yield of 7.3%

At £450 that would be 8.3%

As the figures suggest, it's always best to do a proper job, and they rent much better, quicker and tenants stay longer.

Rental Demand for this area?

Strong Rental Demand Area

Richmond Terrace is just up past the railway station, so it's great for commuters who want to get to Manchester or Blackburn etc... It'd dead handy for town too - only a short walk away. And parking is ok up here too.

Good Capital Return
The area as a whole is on the up which means the capital return on your investment is pretty secure. In fact in 10 years time you'll be saying to yourself... "we should have bought next door too".

Seen something else?
If you have your eye on anything else, or looking to sell any of your renters, just give me a call and we can chat some more.

Or better still bob in to see me and we can discuss it over a coffee (we only do nice coffee you know).

here's my details...

Paul Ainsworth Lord

Tel 01254 760660
Paul@AinsworthLordEstates.com

7% Yield on Devon Street, Whitehall Area Darwen. A good investment?

7% Return on Devon Street, Whitehall, Darwen

Well, you might have noticed this one on the market with our friends at YourMove in Darwen. It's been on a while (since May 14) and it makes me wonder why it hasn't gone yet.

Stale isn't always bad...
It always gets my attention when a property becomes 'stale' after being up for sale too long. But there could be many reasons for this - and not necessarily bad. This can happen for many reasons - and some are often out of the agent's control.

That aside, it's in the right area, and granted it's not a real bargain as such, but nonetheless it's worth looking at.

Well anyway, here's my twopenneth worth.....

Firstly, and as I've already mentioned, it's in one of the best areas of Darwen - the Whitehall area.

Rental Demand is the stongest ever in Darwen
Demand is good for many reasons... it's just one of those places people want to live. There are good schools nearby, access to Bolton & Manchester are pretty good, and of course you are close to a lovely Park and on the edge of some beautiful countryside.

Whitehall Darwen 7% Return on Investment (Gross)

Rental Demand is stronger than ever, we all know this. And especially in this part of Darwen.

And given prices are on the up, now might be a good time to jump in and make an offer on this one. I realise this property isn't a fab bargain right now, but lets be sure of one thing.... prices are going up, not down, and demand in Darwen is stronger than ever. Whether this will change after the election is anyone's guess, but even then any slow down will be temporary, I'm sure.

So if you are looking for a medium - long term investment, I don't think you can go far wrong with this one, or anything similar in this part of Darwen.

So the numbers....
Let's say you ended up paying £80k for this, and you got £450pcm rent on it. This would give you a near 7% return on your money. Not bad eh? (And pretty safe too).

If you want to have a chat, or second opinion, about this or any other property you might be thinking of buying, why not give me a call or bob in for a coffee? Beware though, I can talk property all day long, especially when it's on my patch.

You know my number... 01254 760660
email: Paul@AinsworthLordEstates.com

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.