0:00:00 > 0:00:05Hello! Buying at auction doesn't necessarily mean you get a bargain.
0:00:05 > 0:00:09But what it does mean is when the hammer goes down, the property is yours.
0:00:09 > 0:00:12It can be a great way to buy an investment or a home.
0:00:12 > 0:00:16So settle down and listen to some stories of Homes Under The Hammer!
0:00:42 > 0:00:46Buying a property is one of the biggest commitments you can ever make.
0:00:46 > 0:00:51Particularly in today's market, doing your research is incredibly important.
0:00:51 > 0:00:56Exactly. Buying at auction means you'll be spending thousands in the blink of an eye!
0:00:56 > 0:00:58So preparation is key.
0:00:58 > 0:01:01So how prepared were today's buyers?
0:01:02 > 0:01:07In south London there's a flat that could benefit from more than just cosmetic surgery.
0:01:07 > 0:01:10It may only be small, but the options are big!
0:01:11 > 0:01:15Sometimes it really is just all about location.
0:01:15 > 0:01:17You have to buy where people want to live.
0:01:17 > 0:01:21This house, being very close to the sea front, ticks that box.
0:01:23 > 0:01:27This might be close to a main road, but it's guided at £65,000,
0:01:27 > 0:01:32which for a two-bedroomed mid-townhouse ain't bad!
0:01:33 > 0:01:38All these properties are being sold at auction. We find out who bought them and what they paid
0:01:38 > 0:01:41when they went under the hammer.
0:01:45 > 0:01:48The cardinal rule that location is paramount in property
0:01:48 > 0:01:51is even more important in today's market.
0:01:51 > 0:01:54So you might wonder why I'm in Camberwell
0:01:54 > 0:01:56which doesn't even boast its own tube station.
0:01:56 > 0:02:02That is King's College, one of London's biggest and busiest hospitals
0:02:02 > 0:02:04employing over 6,000 people,
0:02:04 > 0:02:07treating nearly 750,000 patients every year.
0:02:07 > 0:02:11Just imagine you're a hospital worker faced with long hours on the ward
0:02:11 > 0:02:14and then a slog home to where you live.
0:02:14 > 0:02:17Wouldn't it be fantastic if you could live really close.
0:02:17 > 0:02:20Well, it doesn't get much closer than this.
0:02:20 > 0:02:22Up for grabs at auction was a two-bedroom flat
0:02:22 > 0:02:25with a guide price of 165,000 quid
0:02:25 > 0:02:27and it's just there!
0:02:27 > 0:02:31The flat is on the ground floor of this old terraced house
0:02:31 > 0:02:33and looks in OK condition.
0:02:33 > 0:02:36There are bus links to Brixton tube station
0:02:36 > 0:02:38and central London, and a pub on the corner.
0:02:38 > 0:02:42Anyone connected with the hospital would love this location.
0:02:50 > 0:02:55I guess, strictly speaking, this isn't a flat but a maisonette,
0:02:55 > 0:02:58the definition being you don't share an entrance with anybody else.
0:02:58 > 0:03:04In fact, these were originally built like this. They haven't been converted, which is great.
0:03:04 > 0:03:07What have we got? A large living room there.
0:03:07 > 0:03:11A really nice size with a lot of light pouring through the window.
0:03:11 > 0:03:13Straight into a good-sized double bedroom.
0:03:13 > 0:03:15Not only is it a good size,
0:03:15 > 0:03:18but there's a view out to the back.
0:03:18 > 0:03:21However, it's not through double-glazed windows
0:03:21 > 0:03:24so there's the first thing on the "to do" list.
0:03:24 > 0:03:26As it's a ground floor flat,
0:03:26 > 0:03:28it does have the bonus of some outside space.
0:03:28 > 0:03:31Even if it's not the biggest courtyard in the world,
0:03:31 > 0:03:33there's room for a table and chairs.
0:03:33 > 0:03:37Like the compact outside space, there's a rather tiny bathroom.
0:03:37 > 0:03:40It could do with modernisation,
0:03:40 > 0:03:43but it's good to see a bathroom that at least has a bath in it!
0:03:44 > 0:03:47What could you do with the layout of this place?
0:03:47 > 0:03:49You haven't got masses of room to play with,
0:03:49 > 0:03:51but you can be quite creative.
0:03:51 > 0:03:54You've got that huge living room at the front,
0:03:54 > 0:03:57reasonable size bedroom, toilet and bathroom
0:03:57 > 0:04:00into a large kitchen. And a second bedroom at the back.
0:04:00 > 0:04:04Not a bad size, but it could do with being a bit bigger.
0:04:04 > 0:04:08So what would you do? It depends what you're gonna use the property for.
0:04:08 > 0:04:12To live in, maybe you'd want to knock this through for an open plan living area.
0:04:12 > 0:04:17If you're thinking about a rental machine, you'd maximise the number of bedrooms.
0:04:17 > 0:04:20Make the living room into a bedroom and you've got three bedrooms.
0:04:20 > 0:04:26What I like about this, it may only be small, but the options are big!
0:04:28 > 0:04:33The options are dependent on what the new owner wants to do with it.
0:04:33 > 0:04:38If it was to be a home, I'd want to seriously consider some layout changes.
0:04:38 > 0:04:42But as it's more likely that this property will be for the rental market,
0:04:42 > 0:04:45the best idea is probably to upgrade what's already here.
0:04:45 > 0:04:48What does a local estate agent think?
0:04:48 > 0:04:51You have two choices, really.
0:04:51 > 0:04:53You make the reception into the second bedroom,
0:04:53 > 0:04:55so you get a proper double bedroom,
0:04:55 > 0:04:58or you make this room here the second bedroom
0:04:58 > 0:05:02which is much smaller and leads off the kitchen. It's a compromise.
0:05:02 > 0:05:06You could change the layout here, knock down this wall and make it open plan.
0:05:06 > 0:05:10But that's what we call "Marmite". People will love it or hate it!
0:05:10 > 0:05:15Some people will be put off immediately by an open plan kitchen and reception,
0:05:15 > 0:05:18others will like it. So I'd be cautious about that.
0:05:18 > 0:05:22I'd be inclined to leave the layout the same and rent this out as a single let.
0:05:22 > 0:05:27You'd be looking circa £1,000 per calendar month.
0:05:27 > 0:05:32So, some promising rental values. But what about selling it on?
0:05:32 > 0:05:37Once it's completely refurbished, we'd be happy to market this at around 220, 225
0:05:37 > 0:05:40to take offers from 210, 215, around there.
0:05:47 > 0:05:50An interesting opportunity, whichever way you look at it.
0:05:50 > 0:05:54All brought about because of the proximity to that hospital.
0:05:54 > 0:05:57And for £165,000 guide price,
0:05:57 > 0:06:00I think it was a great one when it went to auction.
0:06:02 > 0:06:06Lot 19 is 7, Caldicot Road.
0:06:06 > 0:06:10Two-bed ground floor flat. Where would you like to start?
0:06:11 > 0:06:12130?
0:06:12 > 0:06:15130 on my left.
0:06:15 > 0:06:16130.
0:06:16 > 0:06:18140.
0:06:18 > 0:06:20150.
0:06:20 > 0:06:23155. 156?
0:06:23 > 0:06:24157.
0:06:26 > 0:06:29156 at the back. 157 anywhere?
0:06:29 > 0:06:32157. New spot.
0:06:32 > 0:06:33158.
0:06:33 > 0:06:35159.
0:06:36 > 0:06:38160.
0:06:39 > 0:06:41161.
0:06:41 > 0:06:42162.
0:06:43 > 0:06:45161 with you.
0:06:45 > 0:06:47162? Lose it?
0:06:48 > 0:06:51161. First time, second time.
0:06:51 > 0:06:54Third and last time. Have you all done?
0:06:56 > 0:06:58Sold. 161. Good buy. Well done.
0:06:58 > 0:07:04For £161,000 the new owners of this two-bedroomed flat in Camberwell
0:07:04 > 0:07:06are brothers-in-law Mike and George.
0:07:06 > 0:07:09They both live in the Camberwell area,
0:07:09 > 0:07:13know the location well and have been buying property here for over 20 years.
0:07:13 > 0:07:16Mike, George, lovely to meet you both.
0:07:16 > 0:07:19- Congratulations.- Thank you.
0:07:19 > 0:07:26- Why did you want to buy the house? - It's purely by chance that we came across this one.
0:07:26 > 0:07:28We actually came to buy a house across the road.
0:07:28 > 0:07:34It was only by chance that I happened to check on the internet,
0:07:34 > 0:07:40I was doing a bit of research to see what the properties are going for and I came across this one.
0:07:40 > 0:07:44So we went along to the auction, and ended up buying it. In the meantime,
0:07:44 > 0:07:48- we went to the auction and bought the one opposite!- Wow!
0:07:48 > 0:07:50For similar money.
0:07:50 > 0:07:53What's that like? This is a maisonette. Similar?
0:07:53 > 0:07:59It's identical. If you walk in, everything is laid out exactly the same as this one.
0:07:59 > 0:08:03OK. George, why this area. You've bought not one but two in this area.
0:08:03 > 0:08:08- What is it about this road? - Specifically, for us location is important.
0:08:08 > 0:08:15So being that it's right next to King's Hospital, we know that we can rent them out all day long!
0:08:15 > 0:08:18They know this is also a good price,
0:08:18 > 0:08:24as they paid nearly £63,000 more for a similar place just over a year ago.
0:08:24 > 0:08:28As they've been buying properties together for over two decades now,
0:08:28 > 0:08:31they've put together a sizeable portfolio.
0:08:31 > 0:08:35In fact, Mike is in the process of setting up his own letting agency.
0:08:35 > 0:08:38So for former civil engineer and draughtsman Mike,
0:08:38 > 0:08:42property development and management has become a full-time career.
0:08:42 > 0:08:44Whereas for George, it's still a sideline.
0:08:44 > 0:08:49- How does it work between the two of you?- Michael does nearly everything.
0:08:49 > 0:08:55He researches everything, he gets the builders in, he does all the purchasing.
0:08:55 > 0:08:59I'm just there if he needs me because I work elsewhere.
0:08:59 > 0:09:04- I'm a senior playworker with the Council.- What's a playworker?
0:09:04 > 0:09:08I work with children in an adventure playground.
0:09:08 > 0:09:12Basically, he plays and I work! That's the bottom line!
0:09:12 > 0:09:14That's the way it's gonna stay!
0:09:14 > 0:09:17Financially, is it 50/50? How does it work?
0:09:17 > 0:09:19We've got another partner, actually.
0:09:19 > 0:09:23A younger brother that's a sleeping partner. He's in the wings.
0:09:23 > 0:09:26- So it's a family thing.- Great.
0:09:26 > 0:09:29He sleeps, I play and he works!
0:09:29 > 0:09:31We're quite happy with that relationship.
0:09:31 > 0:09:35There doesn't seem much bitterness from your point of view.
0:09:35 > 0:09:37I take some expenses out!
0:09:37 > 0:09:39Despite the recession,
0:09:39 > 0:09:41Mike's working harder than ever
0:09:41 > 0:09:45as they both see the current downturn in the property market as an opportunity.
0:09:47 > 0:09:51There are people out there saying, "Why are you buying property at the moment?"
0:09:51 > 0:09:54- What would you say to them? - Now's the time to buy!
0:09:54 > 0:09:57Exactly. No, it's quite the opposite, really.
0:09:57 > 0:10:01If you've got cash available, there's no point in putting it in the bank
0:10:01 > 0:10:04cos you're only getting 2% on your money.
0:10:04 > 0:10:09You might as well buy a property, get the rent and get five, six or ten per cent.
0:10:09 > 0:10:13Right. Have you experienced anything like this before?
0:10:13 > 0:10:16In previous recessions did you have property then?
0:10:16 > 0:10:19We actually started together in the late '80s.
0:10:19 > 0:10:22We did buy a substantial property,
0:10:22 > 0:10:25not too far away from here.
0:10:25 > 0:10:29In those days, we got caught in the recession, negative equity.
0:10:29 > 0:10:34It took us probably seven or eight years to recover from that.
0:10:34 > 0:10:37So they've had their fingers burnt before
0:10:37 > 0:10:39and have become more cautious.
0:10:39 > 0:10:45They now know how to make properties work for them, so I'm intrigued to hear their plans for this flat.
0:10:45 > 0:10:47There's two avenues.
0:10:47 > 0:10:52One, we can rent it to students at the hospital.
0:10:52 > 0:10:55It'd probably take three rooms here.
0:10:55 > 0:10:57We'll probably get 1,100 a month for it.
0:10:57 > 0:11:01We could rent it out privately to a family, professionals,
0:11:01 > 0:11:03for about 1,000 a month.
0:11:03 > 0:11:07Or, another avenue that we've discussed with George
0:11:07 > 0:11:09is possibly a serviced appartment,
0:11:09 > 0:11:13where we'd let it out to people coming for treatment at the hospital.
0:11:13 > 0:11:17- For how long?- Two months, three months at a time. Six weeks.
0:11:17 > 0:11:21They're regularly going to the hospital for treatment.
0:11:21 > 0:11:25This is what I discovered from property we've rented round the corner.
0:11:25 > 0:11:28I got a lot of enquiries from people wanting short lets.
0:11:28 > 0:11:34- And the figures you can expect from short-term rentals, are they higher? - Probably 50, 60% higher.
0:11:34 > 0:11:38- George, what do you think about that?- We've talked about it vaguely.
0:11:38 > 0:11:41Anything that works, it's fine with me.
0:11:41 > 0:11:45No problem with it. If it makes money, I'm happy! Got no problem at all!
0:11:45 > 0:11:48This flat certainly offers plenty of scope.
0:11:48 > 0:11:51They intend to spend a decent amount on it
0:11:51 > 0:11:56with £20,000 earmarked to turn this into a high-specification letting machine.
0:11:59 > 0:12:03Mike and George clearly perfectly placed to take on this project
0:12:03 > 0:12:08and what better experience than having done an identical property nearby
0:12:08 > 0:12:12and making some mistakes - they know what they're doing.
0:12:12 > 0:12:15They've lived through a previous property recession
0:12:15 > 0:12:21and it went wrong for them, but here they are making the most of the current opportunities.
0:12:21 > 0:12:26How will they get on? Are they gonna convert it into a serviced appartment?
0:12:26 > 0:12:30Will that work? It'll be an interesting one to follow later in the show.
0:12:34 > 0:12:38Herne Bay's heyday as a seaside resort was the late-Victorian era
0:12:38 > 0:12:40when the promenades and piers were built.
0:12:40 > 0:12:45Today, it's a rather sleepy place, perfect to retire to.
0:12:45 > 0:12:49But with London just one-and-a-half hours away and Canterbury seven miles,
0:12:49 > 0:12:52it's not a bad work base either.
0:12:53 > 0:12:58This is Carlton Hill, literally a five-minute walk from Herne Bay's promenade.
0:12:58 > 0:13:02There are some lovely well-kept houses on this street.
0:13:02 > 0:13:03And then there's this.
0:13:03 > 0:13:07Yes, you've guessed it. This is our auction property.
0:13:07 > 0:13:10It always worries me when I see the windows boarded up,
0:13:10 > 0:13:17but it is a three-bedroomed detached house with a guide price of 130 to 135,000.
0:13:17 > 0:13:20Let's hope it' not a real shocker on the inside.
0:13:23 > 0:13:27From a positive point of view, there's plenty of off-road parking
0:13:27 > 0:13:30and the boards seem to be hiding a lovely bay window.
0:13:30 > 0:13:34Whether there's any glass in it, we'll just have to see.
0:13:36 > 0:13:40Well, my first impressions are, yes, these windows are broken,
0:13:40 > 0:13:42it needs some attention in here.
0:13:42 > 0:13:47But I love 1930s houses and this is a really welcoming hallway. A nice staircase,
0:13:47 > 0:13:50lovely ceiling height,
0:13:50 > 0:13:52and you've even got a little downstairs loo.
0:13:54 > 0:13:57And through here, a large reception room.
0:13:57 > 0:13:59Now, once those boards come off the windows,
0:13:59 > 0:14:02this will be a fabulous double-aspect room.
0:14:02 > 0:14:07The wall here's been knocked down. It's been opened up to create two rooms.
0:14:07 > 0:14:08It really works well.
0:14:08 > 0:14:12Personally, I'm not keen on this fake Tudor look.
0:14:12 > 0:14:14It's not even wood, it's plaster!
0:14:14 > 0:14:16It'll be a nightmare to remove.
0:14:16 > 0:14:18I do like this fireplace, though.
0:14:18 > 0:14:21Sadly, the previous owners have removed the chimney breast
0:14:21 > 0:14:24and you can't actually have a real fire here.
0:14:24 > 0:14:26But you could have a gas effect one.
0:14:26 > 0:14:28It's a great open-plan space
0:14:28 > 0:14:30and overall, a really good start.
0:14:30 > 0:14:34Some of this may be mock Tudor, but there's no disguising the fact
0:14:34 > 0:14:36this place could do with a lot of work.
0:14:36 > 0:14:39The catalogue did say it needed total refurbishment
0:14:39 > 0:14:42and that's certainly the case, especially at the back.
0:14:42 > 0:14:49This is where the house originally ended and they've extended it here to make the dining area.
0:14:49 > 0:14:54But I would have knocked this through to have one big open-plan kitchen.
0:14:54 > 0:14:55It's disappointing.
0:14:55 > 0:15:00This is where you need to spend some money on a big family-sized kitchen
0:15:00 > 0:15:02to really finish this house off.
0:15:04 > 0:15:10This area is a real mess. It's an unfinished add-on and now contains the remnants of the kitchen.
0:15:10 > 0:15:13The only positive is that plumbing and electrics are here
0:15:13 > 0:15:15but they might need upgrading too.
0:15:15 > 0:15:18And the layout, well, it just doesn't work.
0:15:20 > 0:15:26So there's a bit of work needed in the house and a lot of work needed out here too.
0:15:26 > 0:15:29There is loads of junk scattered everywhere.
0:15:29 > 0:15:31But for a family house, it's ideal.
0:15:31 > 0:15:35But I would be looking to get rid of this pond, if there's kids around.
0:15:35 > 0:15:37My worry is, as a rental property,
0:15:37 > 0:15:41tenants may find this garden hard work to maintain.
0:15:41 > 0:15:46But on a positive note, there's lots of sheds and outbuildings to store things in
0:15:46 > 0:15:48and it'll be lovely here in the summer.
0:15:48 > 0:15:53This garden should be an asset, but as it stands, could be seen as a negative.
0:15:53 > 0:15:56Buyers might be put off by the amount of work here.
0:15:56 > 0:16:01It needs to be cleared, and then to start with lawned and made low-maintenance.
0:16:01 > 0:16:04Then it would appear less daunting.
0:16:04 > 0:16:07Upstairs here we've got the bathroom,
0:16:07 > 0:16:09in a desperate state.
0:16:09 > 0:16:13A double bedroom and a box room with a jungle theme going on.
0:16:13 > 0:16:17And in here is the main bedroom with this lovely bay window.
0:16:17 > 0:16:20It gives you a good idea of what it'll be like downstairs.
0:16:20 > 0:16:25This bedroom has been prepared for decorating - some walls are boarded.
0:16:25 > 0:16:29But I can't see anything structurally wrong with this house.
0:16:29 > 0:16:33There's no damp, no cracks, it's got gas central heating, new windows.
0:16:33 > 0:16:37It just needs a total refurbishment.
0:16:37 > 0:16:41I don't think that's going to come cheap, but it could be done in a few months.
0:16:41 > 0:16:46Certainly upstairs, at least, some of the groundwork has been done.
0:16:46 > 0:16:49The walls have been prepared, there are new sockets,
0:16:49 > 0:16:53and flooring is underway in one of the bedrooms.
0:16:53 > 0:16:57Te house has a lot going for it. It'll take a fair amount of money to finish it off,
0:16:57 > 0:17:02but as the guide price was a competitive 130 to 135,000,
0:17:02 > 0:17:06it strikes me as an opportunity to make some profit.
0:17:06 > 0:17:10What does the local property expert think?
0:17:11 > 0:17:14Three-bedroomed properties in this area are desirable,
0:17:14 > 0:17:17particularly because of the location near schools
0:17:17 > 0:17:21and the train station and the sea front.
0:17:21 > 0:17:25You'd probably look to achieve somewhere near 800 to 850
0:17:25 > 0:17:28per calendar month for a property of this type.
0:17:28 > 0:17:31In the market we're in at the moment, a challenging market,
0:17:31 > 0:17:34to sell any property,
0:17:34 > 0:17:39yes, the traditional aspects like the kitchen and bathroom are really important,
0:17:39 > 0:17:42but fundamentally price is the most important factor.
0:17:43 > 0:17:47What is the all-important price likely to be for this house?
0:17:49 > 0:17:53Once renovated, I would say, in the current market conditions,
0:17:53 > 0:17:58the resale value of this property would be from around £210,000
0:17:58 > 0:18:00to £225,000.
0:18:00 > 0:18:04So with that 130 to £135,000 guide price,
0:18:04 > 0:18:07this place was an attractive prospect.
0:18:07 > 0:18:11The important thing, especially in today's market, is where it is.
0:18:11 > 0:18:13Location is paramount.
0:18:13 > 0:18:16You've got to buy where people want to live,
0:18:16 > 0:18:20and this house, being very close to the sea front, ticks that box.
0:18:20 > 0:18:23So who wanted this dated, but detached house?
0:18:23 > 0:18:25Let's find out at the auction.
0:18:27 > 0:18:32Lot 54. We move to Carlton Hill, Herne Bay.
0:18:32 > 0:18:35In fact, we move to 110 Carlton Hill, Herne Bay.
0:18:35 > 0:18:38Start me at 130. 130 I have.
0:18:38 > 0:18:41130 I'm bid. 135?
0:18:41 > 0:18:43135 is bid and 140.
0:18:43 > 0:18:45140 is bid.
0:18:45 > 0:18:48145? 145 is bid. And 150.
0:18:48 > 0:18:50155? 155.
0:18:50 > 0:18:52160.
0:18:52 > 0:18:53165?
0:18:56 > 0:18:59165. And 170. 175?
0:18:59 > 0:19:01175.
0:19:01 > 0:19:04180? 179, if it helps. Take 1,000?
0:19:05 > 0:19:08179, thank you. 180?
0:19:08 > 0:19:10180 is bid.
0:19:10 > 0:19:13181? No. At 180.
0:19:13 > 0:19:18You're all out in the room. At £180,000 I have. 181 do I see?
0:19:18 > 0:19:21181 is bid. 182?
0:19:22 > 0:19:24I'm selling. 182.
0:19:24 > 0:19:26183?
0:19:26 > 0:19:27183.
0:19:28 > 0:19:31184, Will?
0:19:31 > 0:19:34You don't have to walk round just because it's called a mobile!
0:19:34 > 0:19:37183 is bid. 184?
0:19:37 > 0:19:39No? 183 I have in the room.
0:19:39 > 0:19:42183,000, it's being sold for the first time.
0:19:42 > 0:19:46At 183,000. Being sold
0:19:46 > 0:19:50for the second time at 183,000.
0:19:50 > 0:19:54Third and final time at 183,000. Are you all done?
0:19:54 > 0:19:58Sold at 183,000 and that's buyer 7155.
0:19:58 > 0:19:59Nice to see you. Thank you.
0:19:59 > 0:20:03For £183,000, 53,000 over the guide price,
0:20:03 > 0:20:08the new owner of the house in Herne Bay is not Alan, who bid at auction,
0:20:08 > 0:20:10but his son, Kieran.
0:20:12 > 0:20:16With his three brothers, Kieran lives in a bungalow next to Mum and Dad.
0:20:16 > 0:20:19So he must be delighted to get his own place!
0:20:19 > 0:20:23I work at the butchery shop for my dad.
0:20:23 > 0:20:27I've really worked hard all my life since I left school.
0:20:27 > 0:20:29I've saved my money well.
0:20:29 > 0:20:32I've always wanted to buy a property. My dad's done well on it
0:20:32 > 0:20:36and now I've got this place. My dad's lent a lot towards it
0:20:36 > 0:20:39but we've finally got a nice place!
0:20:40 > 0:20:44Kieran has bought this as an investment. Not necessarily his new home,
0:20:44 > 0:20:48but he was following his father's lead about buying property being a wise thing to do.
0:20:48 > 0:20:52He also took his advice about what type of house to buy.
0:20:52 > 0:20:54In fact, Kieran didn't even view it.
0:20:54 > 0:20:59He trusted his dad's judgement and set an upper limit for Dad, Alan, to spend at auction.
0:21:00 > 0:21:03Have you bought other houses at auction?
0:21:03 > 0:21:06We've bought probably another three or four at auction.
0:21:06 > 0:21:09Are you a property developer?
0:21:09 > 0:21:16- Not so much a developer, but we've got about 13 properties...- Wow! - ..what we rent out.
0:21:16 > 0:21:20How does the butcher's shop compare to buying and selling property?
0:21:20 > 0:21:25I think it's good. I've been there 30-odd years.
0:21:25 > 0:21:30I think the property business, I'd rather do things with this than the shop.
0:21:30 > 0:21:34Are you happy to be in a position to be able to help your sons?
0:21:34 > 0:21:37Yes. Kieran's a really good lad
0:21:37 > 0:21:40and I think it's nice to rent this property out
0:21:40 > 0:21:43and if he gets married in a few years, they can move in.
0:21:43 > 0:21:46What's this?
0:21:46 > 0:21:48I haven't got any plans just yet!
0:21:48 > 0:21:51Your dad's marrying you off already!
0:21:51 > 0:21:54So, not only is Dad his boss at the butcher's,
0:21:54 > 0:21:57his bank manager and property advisor,
0:21:57 > 0:21:59he now seems to be his wedding planner too!
0:21:59 > 0:22:02Is Kieran going to be in control of anything?
0:22:06 > 0:22:10Be working on it quite a lot. Days off. I'll come in after work, do a few things.
0:22:10 > 0:22:14I have a half-day now and then. I'll come here and I'll work.
0:22:14 > 0:22:16Your dad lets you have a half day?!
0:22:16 > 0:22:21- Sometimes!- He didn't on auction day, did he?- He didn't!
0:22:21 > 0:22:26- How hard do you have to work for your dad?- Very hard. It's a really busy butcher's shop.
0:22:26 > 0:22:31What work are you going to be doing in this house? Start with downstairs.
0:22:31 > 0:22:36Well, it's going to be obviously painting and decorating the whole place.
0:22:36 > 0:22:38We need a new kitchen, a new bathroom.
0:22:38 > 0:22:41My brother's got his own gardening firm.
0:22:41 > 0:22:42He does really well over it.
0:22:42 > 0:22:46He'll do most of the gardening work and we'll help him out.
0:22:46 > 0:22:50There's a lot to be done. It needs turfing, some trees to be pruned.
0:22:50 > 0:22:55What's your sort of budget? How much money have you got, Kieran, to play with?
0:22:55 > 0:22:59I think about six to £8,000. Since we're doing most of the work ourselves.
0:22:59 > 0:23:03And my brother's doing a lot of the work with us.
0:23:03 > 0:23:05I think six to 8,000 will be plenty.
0:23:05 > 0:23:08What's he like to work with? Is he a grafter?
0:23:08 > 0:23:12He's very good. I'd rather work with Kieran than anyone else.
0:23:12 > 0:23:14We get on really well at the shop
0:23:14 > 0:23:17and it's a pleasure to work, both of us together.
0:23:17 > 0:23:20So you've got a really nice father/son relationship?
0:23:20 > 0:23:23- Yes.- Yes.- Do you have a laugh along the way?
0:23:23 > 0:23:25- Oh, yes!- You have some laughs? - We do!
0:23:36 > 0:23:40Kieran, as well as being a butcher, has grown up around property developing.
0:23:40 > 0:23:44But this is the first time the project is his very own.
0:23:44 > 0:23:48However, with a dad like Alan around to help and inspire him,
0:23:48 > 0:23:51and brothers on hand to get stuck in to the work,
0:23:51 > 0:23:54I think they'll have this done and dusted in no time.
0:23:54 > 0:23:58But will it end up as prime rib, or just offcuts?
0:23:58 > 0:24:01Join me later in the programme and you can find out.
0:24:03 > 0:24:07Coming up: I've already started my "to do" list with this house!
0:24:07 > 0:24:10Definitely one of the first jobs I'd do in this place!
0:24:14 > 0:24:19We return to Kent to see if all Kieran's efforts have paid off.
0:24:19 > 0:24:22I worked non-stop for months. Working really hard.
0:24:24 > 0:24:29But first, in London, did Mike get the short straw?
0:24:29 > 0:24:32He sleeps, I play, and he works!
0:24:35 > 0:24:38Back in Camberwell, south London,
0:24:38 > 0:24:43brothers-in-law Mike and George seem to have their fingers on the pulse of the market.
0:24:43 > 0:24:47They snapped up a two-bedroom flat for 161,000
0:24:47 > 0:24:53knowing that nearby King's College Hospital could provide a steady supply of tenants.
0:24:53 > 0:24:56George works full time as a council playworker,
0:24:56 > 0:25:02so project managing the renovation was down to ex-civil engineer and draughtsman, Mike.
0:25:02 > 0:25:04He now works full time in the housing market.
0:25:04 > 0:25:09Four months on and I'm getting "im-patient"!
0:25:09 > 0:25:12Have they successfully operated on this rather jaded flat,
0:25:12 > 0:25:14and brought it back to life.
0:25:23 > 0:25:27Well, they've definitely gone for the modern, contemporary look here.
0:25:27 > 0:25:32There's wooden flooring and slim vertical radiators in the main rooms.
0:25:32 > 0:25:35They've made life easier for themselves
0:25:35 > 0:25:37by not changing the layout.
0:25:37 > 0:25:40It looks as though it's all gone to plan.
0:25:40 > 0:25:44With Michael here in charge, it was quite easy
0:25:44 > 0:25:46because I knew I didn't have to deal with it!
0:25:49 > 0:25:52I've got good, conscientious builders
0:25:52 > 0:25:56that when there's a problem, they just get on with it.
0:25:56 > 0:25:58They know what I want at the end of the day.
0:26:06 > 0:26:11It certainly seems as though his building team have come up trumps.
0:26:12 > 0:26:17But perhaps the biggest and most impressive transformation took place in the kitchen.
0:26:32 > 0:26:37Well, we decided to revamp the whole kitchen.
0:26:37 > 0:26:41As you can see, the slight change from what it was a few months ago.
0:26:41 > 0:26:44I wasn't sure what type of kitchen to put in here
0:26:44 > 0:26:47cos I wanted to do something a bit different.
0:26:47 > 0:26:51So I went down to my local kitchen outlet,
0:26:51 > 0:26:58and I said to him, "Jim, what's the most popular range of kitchen you've got at the moment?"
0:26:58 > 0:27:00Here we are. This is it.
0:27:00 > 0:27:02I think it's great.
0:27:02 > 0:27:04I love this kitchen now!
0:27:04 > 0:27:07Not only has this flat been designed to have a great look,
0:27:07 > 0:27:11it's also been well thought-through in terms of its potential market.
0:27:11 > 0:27:15You're probably wondering why the sockets are at this level in the hall.
0:27:15 > 0:27:17The logic behind that
0:27:17 > 0:27:22is that I cut the cupboard back
0:27:22 > 0:27:25so we can allow for a table, a desk, a computer table here
0:27:25 > 0:27:32and also we're next to the hospital. We may get somebody that's infirm, in a wheelchair,
0:27:32 > 0:27:35and it's wheelchair access as well.
0:27:35 > 0:27:39So that's the logic behind that. This is like a work area.
0:27:39 > 0:27:42All this attention to detail has paid off
0:27:42 > 0:27:44with a tenant already lined up.
0:27:44 > 0:27:49And yes, they do work at the hospital, so they were right about the market.
0:27:49 > 0:27:53This partnership works almost like a client/builder relationship,
0:27:53 > 0:27:56Mike being the project manager, George the client
0:27:56 > 0:27:59who just stumps up his share of the money.
0:28:00 > 0:28:04We've been partners for over 20 years now
0:28:04 > 0:28:07so I know him inside out, he knows me inside out.
0:28:07 > 0:28:09We know what we can both get away with
0:28:09 > 0:28:13and if he's gone more than 500 quid over budget, there's trouble!
0:28:13 > 0:28:15See you later!
0:28:15 > 0:28:21Oh, dear! Has Mike's high specification caused problems for the budget?
0:28:21 > 0:28:27I think I guesstimated somewhere in the region of 22 to 25,000.
0:28:27 > 0:28:30We've come in probably just under... Are you all right?
0:28:30 > 0:28:32- Carry on!- ..under 30,000.
0:28:32 > 0:28:34Oh, my God!
0:28:34 > 0:28:39The partnership has just been dissolved, but that's life!
0:28:39 > 0:28:42- No, seriously...- Nice working with you, George!
0:28:42 > 0:28:48Yeah! No, but seriously, I'm very happy with the way he goes about the job.
0:28:48 > 0:28:52You can see for yourselves the finish here. I'm very pleased.
0:28:52 > 0:28:58That overspend takes their outlay to £190,000.
0:28:58 > 0:29:02But in this area of London, that may still represent good value.
0:29:02 > 0:29:04They already have a tenant in place
0:29:04 > 0:29:08so have they got the best possible deal on the maisonette?
0:29:08 > 0:29:10Let's hear from two local estate agents.
0:29:14 > 0:29:18Pretty fantastic. They've done a very good job on the property.
0:29:18 > 0:29:20A relatively high-spec as well.
0:29:20 > 0:29:22They've used wooden floors and not laminate.
0:29:22 > 0:29:25It's very important. The original sash windows as well.
0:29:25 > 0:29:28The bathroom and kitchen are excellent.
0:29:28 > 0:29:32First impressions of the property, it's done to a very good standard.
0:29:32 > 0:29:37I love the modern radiators, the flooring's nice. The kitchen is well done, as well.
0:29:37 > 0:29:42A little more effort in the garden. A garden is such an asset in this part of London.
0:29:42 > 0:29:47More plants, some action going on, cos it looks a bit last-minute.
0:29:47 > 0:29:50Apart from that, very nice indeed.
0:29:50 > 0:29:53So the garden could certainly be improved.
0:29:53 > 0:29:58But has its condition hampered the growth of their £190,000 investment?
0:29:58 > 0:30:01I'd be very comfortable with marketing this property
0:30:01 > 0:30:06at somewhere between 225 and 230,000 and taking offers from there.
0:30:06 > 0:30:09For a sales price, if I put the property on the market,
0:30:09 > 0:30:12I'd put it on around the stamp duty level, around 250,000,
0:30:12 > 0:30:17expecting to achieve not as much as that, but offers around the 240 level.
0:30:18 > 0:30:23Wow! Not bad. A possible 40 to maybe £50,000 profit.
0:30:23 > 0:30:25They must be pleased about that!
0:30:26 > 0:30:29The prices seem around what we thought anyway.
0:30:29 > 0:30:35I suppose, eventually, the prices go up as always.
0:30:35 > 0:30:38But we're not looking to sell anyway.
0:30:38 > 0:30:41No, this has always been a long-term investment.
0:30:41 > 0:30:45For Mike and George, it's all about rental returns.
0:30:45 > 0:30:50It should go under offer, rental-wise, anywhere between 1,050 and 1,100 per calendar month.
0:30:50 > 0:30:53Per calendar month, if I was to rent this property out,
0:30:53 > 0:30:57I would expect to achieve between 950 and £1,000 per calendar month.
0:30:57 > 0:31:00Have Mike and George been able to get anywhere near
0:31:00 > 0:31:04those rental figures of 950 to £1,100 a month?
0:31:04 > 0:31:07Well, if I tell you we've got a lot more than that!
0:31:08 > 0:31:111,250! I've secured it at 1,250.
0:31:11 > 0:31:15Pretty amazing. That represents £15,000 a year,
0:31:15 > 0:31:20or a yield of nearly 8%, which in current times is pretty impressive.
0:31:20 > 0:31:23So it seems that for George and Mike,
0:31:23 > 0:31:27the dip in the property market has been uplifting for them at least.
0:31:27 > 0:31:29So, what's next?
0:31:30 > 0:31:35We've got some money left over to take the bank manager out for lunch and we'll discuss it.
0:31:35 > 0:31:38- It's up to the banks.- Might even take our wives out for lunch!
0:31:38 > 0:31:41- You're pushing it now, George!- OK!
0:31:42 > 0:31:45So their next meal ticket may depend on the bank manager.
0:31:45 > 0:31:50But this current investment has done anything but leave a bad taste.
0:31:50 > 0:31:55In fact, many more like this and they'll be dining out for years to come!
0:31:58 > 0:32:04Derby, in the east Midlands, was the birthplace of the Industrial Revolution.
0:32:04 > 0:32:08Its central location in England means it's well placed.
0:32:08 > 0:32:10The M1 passes nearby
0:32:10 > 0:32:13and East Midlands airport is about 15 miles away.
0:32:13 > 0:32:17But of course, good transport links also mean lots of traffic.
0:32:17 > 0:32:22This is Kingsway, a suburb of Derby, two miles outside the city centre.
0:32:22 > 0:32:26It does have the A38, the Derby ringroad, slicing through the middle of it,
0:32:26 > 0:32:28which could mean it's a bit noisy.
0:32:28 > 0:32:32Luckily, the house I'm here to see is set on a nice bit of greenery
0:32:32 > 0:32:35so it's not as bad as being on the side of the road.
0:32:35 > 0:32:41At a guide price of 65,000 quid for a two-bedroom mid townhouse ain't bad!
0:32:43 > 0:32:45It's not the prettiest of townhouses
0:32:45 > 0:32:51and, worryingly, has a Harry Potter-style lightning scar on the brickwork!
0:32:51 > 0:32:55The worst-case scenario is that this is a crack that's been repaired
0:32:55 > 0:33:00but I think it's just some repointing done in a different coloured mortar.
0:33:00 > 0:33:03Hopefully, it can be magicked away quite easily!
0:33:03 > 0:33:06So, what does your money buy you?
0:33:06 > 0:33:11Well, an ex-local authority property which, as you may know, I really like.
0:33:11 > 0:33:15They're solidly built, got a lot of space like extra cupboards.
0:33:15 > 0:33:19But this one, as you walk through the door, it is kind of dated.
0:33:19 > 0:33:21Things like the stairway give it all away.
0:33:21 > 0:33:25But good sized rooms. The living room, some interesting features
0:33:25 > 0:33:28which you could play with. Some you definitely need to sort out.
0:33:28 > 0:33:32Through to a very useful separate dining area
0:33:32 > 0:33:35or family living area which adjoins the kitchen.
0:33:35 > 0:33:37Now that is very practical.
0:33:37 > 0:33:42That gets better when you go out the back. You've got a utility room and downstairs loo.
0:33:42 > 0:33:44So all in all, I already like it.
0:33:45 > 0:33:49I reckon the kitchen units are salvageable,
0:33:49 > 0:33:51but the decor needs updating.
0:33:51 > 0:33:53The floors need to be re-carpeted,
0:33:53 > 0:33:57but there are no signs that that really was a crack outside.
0:33:59 > 0:34:04Out the back here as I said earlier, a very useful bit of extra space.
0:34:04 > 0:34:06A utility room, downstairs loo
0:34:06 > 0:34:09and what's really good is that they've enclosed this area
0:34:09 > 0:34:11with this conservatory.
0:34:11 > 0:34:16It's not the highest quality, but it gives you this extra bit of space.
0:34:16 > 0:34:20Then a door out onto the back garden.
0:34:20 > 0:34:22Not a bad size, and there's even a magnolia tree.
0:34:22 > 0:34:25Which is, of course, where you get the paint from!
0:34:27 > 0:34:32I am joking, of course! Everyone knows you get paint from a DIY store!
0:34:36 > 0:34:38Upstairs is in much the same condition
0:34:38 > 0:34:43with two bedrooms which need refreshing with a lick of paint, magnolia or otherwise!
0:34:45 > 0:34:49Up here, two good sized double bedrooms. That's all OK.
0:34:49 > 0:34:52But it goes horribly wrong when you come to the bathroom.
0:34:52 > 0:34:56To call it a bathroom isn't strictly true. All it's got is a shower.
0:34:56 > 0:35:01Call me old-fashioned, but in a house like this, you really need to have a bath.
0:35:01 > 0:35:04The thing is, there is room in this bathroom to do it.
0:35:04 > 0:35:09All you do is jiggle around these units, or replace them cos they're dated,
0:35:09 > 0:35:14put a nice suite in here, get a bath in and job done.
0:35:14 > 0:35:17It's one of the first jobs I'd do in this place.
0:35:17 > 0:35:21But having to update bathrooms and kitchens is no great shock.
0:35:21 > 0:35:24Most house-buyers would expect to do that anyway.
0:35:24 > 0:35:29So, all in all, not bad, and the outside space is good for a family as well.
0:35:30 > 0:35:36But does this fit the home-buyers' market, or is it best viewed as a rental property?
0:35:36 > 0:35:40What can the auctioneer who sold the house tell us about it?
0:35:42 > 0:35:46The history to this, as far as I'm aware, is it's been rented out for some time.
0:35:46 > 0:35:48I think the people who owned it
0:35:48 > 0:35:50decided they'd either had enough of renting it
0:35:50 > 0:35:53or they could use the capital better elsewhere.
0:35:53 > 0:35:58In essence, the property's fine. There's a few historic settlement cracks,
0:35:58 > 0:36:00but I don't think that would be detrimental.
0:36:00 > 0:36:03It's not in bad shape really. Just wants a bit of TLC.
0:36:05 > 0:36:08This obviously has rental potential,
0:36:08 > 0:36:12and has been a popular student let in the past. So, what could it earn?
0:36:12 > 0:36:17I'd say its rental value is in the region of £450 a calendar month.
0:36:17 > 0:36:19And a re-sale value?
0:36:20 > 0:36:25Assuming it's been updated in one or two areas and put back on the market,
0:36:25 > 0:36:29in today's market you'd probably achieve about 85,000 for it.
0:36:29 > 0:36:32So, nothing spectacular here.
0:36:32 > 0:36:35But it should be a good, solid investment.
0:36:39 > 0:36:44Well, a bit dated, and possibly not the prettiest of houses from the outside.
0:36:44 > 0:36:47Definitely a case of function over form.
0:36:47 > 0:36:50But do the numbers stack up? They probably do.
0:36:50 > 0:36:53Let's see who agreed with me when it went to auction.
0:36:56 > 0:36:58We move on to lot number 12.
0:36:58 > 0:37:02A mid townhouse with two-bedroomed accommodation
0:37:02 > 0:37:05and other rooms as detailed in your catalogue.
0:37:05 > 0:37:09Where do you want to be on this one? Start me where you will. 68?
0:37:09 > 0:37:1260 I have. Thank you. At £60,000.
0:37:12 > 0:37:13At 61.
0:37:13 > 0:37:1661 is bid. 62.
0:37:16 > 0:37:1862 is bid. 63, sir? 63.
0:37:18 > 0:37:2163. Four. 64,000.
0:37:21 > 0:37:2365 is bid. At 65.
0:37:23 > 0:37:2566? It's in the market.
0:37:25 > 0:37:30No mistakes about that. We're here to sell it. 65,000 I have. 66?
0:37:30 > 0:37:33At £65,000. Seated bid.
0:37:33 > 0:37:38At 65,000. Any higher bid? All done with it? For the first time at 65.
0:37:38 > 0:37:43For the second time at 65. Third and last opportunity for Seymour Close.
0:37:43 > 0:37:45At £65,000.
0:37:45 > 0:37:48Yours, sir, at 65,000. Thank you.
0:37:49 > 0:37:53For exactly the guide price of 65,000,
0:37:53 > 0:37:57the new owners of the Derby house are young couple Jennifer and Jonathan.
0:37:57 > 0:38:01I met up with them to find out why they wanted this particular property.
0:38:04 > 0:38:08Because Jen used to live here.
0:38:08 > 0:38:11- What?!- Yes, it used to be my student house.
0:38:11 > 0:38:14- So you were a student where, at Derby?- Derby.
0:38:14 > 0:38:19Yep, and I lived here for a year while I was studying there.
0:38:19 > 0:38:22So how did you rediscover it?
0:38:22 > 0:38:25Um, we were meant to be buying a car
0:38:25 > 0:38:30and I went on the internet to look for various things and stumbled across this!
0:38:30 > 0:38:36At which bit of the search did you mis-type car to house?
0:38:36 > 0:38:38Not quite sure!
0:38:38 > 0:38:43- Jen likes to keep an eye on houses and prices.- I don't like to let anything slip past.
0:38:43 > 0:38:47- Right.- So we decided to put the car on hold for a bit
0:38:47 > 0:38:49and buy a house instead!
0:38:49 > 0:38:53- Were you looking to buy a very expensive car?- No, no!
0:39:03 > 0:39:07Buying something you've previously lived in is a smart move.
0:39:07 > 0:39:10You know the area and, more importantly,
0:39:10 > 0:39:13you should have a good idea of the condition of the house.
0:39:13 > 0:39:17But for Jennifer and Jonathan it was five years ago,
0:39:17 > 0:39:20and as a student I didn't take much notice of the roof
0:39:20 > 0:39:26or whether the walls were cracking. As long as the fridge worked and there was heating, it was fine!
0:39:26 > 0:39:28Has it changed since you were here?
0:39:28 > 0:39:33Well, there was carpet down, and lots of student junk!
0:39:33 > 0:39:36But other than that, no.
0:39:36 > 0:39:41- You obviously enjoyed your time here and thought it was an enjoyable house to live in.- Yeah,
0:39:41 > 0:39:45- it was nice. It's got some quite nice memories, hasn't it?- Yes.
0:39:45 > 0:39:50- Did you ever visit the house when... - Yeah, I practically lived here!
0:39:50 > 0:39:53It took you a while to reveal that little fact!
0:39:53 > 0:39:55- You knew it as well!- Yeah.
0:39:55 > 0:39:57- Fantastic.- It was when we started going out.
0:39:57 > 0:40:00Here you are, back in the house where you courted.
0:40:00 > 0:40:02If that's a modern term!
0:40:03 > 0:40:07- Yeah, I guess you could say that, really.- And now are you married?
0:40:07 > 0:40:09- Yeah.- Two-and-a-half years.
0:40:09 > 0:40:14- Where have you been living in the meantime? Renting?- Renting, yeah.
0:40:14 > 0:40:17It's local. Another house in Derby.
0:40:17 > 0:40:21But this effectively is your first proper home since you got married.
0:40:21 > 0:40:24Yeah, it was quite exciting, getting the keys.
0:40:24 > 0:40:28This house was obviously a big part of their lives in the past.
0:40:28 > 0:40:32Now it's gonna play an important role in their future.
0:40:32 > 0:40:38- What are you gonna do to it? - You don't like it as it is? - Well, no, actually, it's fine.
0:40:38 > 0:40:43- If you put some carpets down... - We'll replace the carpets with the same ones that are there.
0:40:43 > 0:40:46- Just a newer ver...- Yeah (!)
0:40:46 > 0:40:49We're gonna replace all the double glazing apart from the doors.
0:40:49 > 0:40:53We're going to replace all the carpets
0:40:53 > 0:40:58and put down laminate flooring in the dining room and hallway.
0:40:58 > 0:41:01We're gonna decorate it throughout.
0:41:01 > 0:41:05There'll need to be a new hob and new oven in the kitchen as well
0:41:05 > 0:41:10- cos the units in there aren't serviceable.- How much have you set aside to do the work?
0:41:10 > 0:41:14We're looking at about five to £6,000 before moving in.
0:41:14 > 0:41:20And there might be a little bit more afterwards. My brother is a plumber, so he can sort out the bathroom.
0:41:20 > 0:41:26But we're hoping to get everything done in the next five to six weeks.
0:41:26 > 0:41:28That's the plan!
0:41:28 > 0:41:32Well, it's a lovely story. Funny the way things turn out, isn't it?
0:41:32 > 0:41:36Yeah. It's certainly not what we expected to happen, is it?
0:41:36 > 0:41:42Family and friends were shocked when I said, "Remember the house I used to live in? We've just bought it!"
0:41:54 > 0:41:56Well, how appropriate,
0:41:56 > 0:42:01this place being bought by an ex-student who used to rent it.
0:42:01 > 0:42:04But Jonathan and Jennifer also go to prove
0:42:04 > 0:42:10that first-time buyers can still get a mortgage and get a lovely home like this as their first place.
0:42:10 > 0:42:13How are they gonna get on turning it into their very own home?
0:42:13 > 0:42:15Find out later in the show.
0:42:19 > 0:42:22We never quite know how the renovations are going to go.
0:42:22 > 0:42:27For some properties, a quick lick of paint and a new carpet is all that's required.
0:42:27 > 0:42:30- For others, it's a full renovation. - So which one is it going to be?
0:42:30 > 0:42:34A fix-up job or the full works? Let's find out.
0:42:36 > 0:42:40The name Kent derives from the old English word for a corner of land.
0:42:40 > 0:42:44It was here that Kieran, who works as a butcher alongside his dad Alan
0:42:44 > 0:42:48hoped to turn round the fortunes of a rather dilapidated
0:42:48 > 0:42:50three-bedroom detached house.
0:42:50 > 0:42:53But finding the time to do it was going to be tricky.
0:42:53 > 0:42:56I'm gonna come here after work, do a few things.
0:42:56 > 0:43:00I have a half day now and then and I'll come in here and work.
0:43:00 > 0:43:03- Your dad lets you have a half day?! - Sometimes!
0:43:04 > 0:43:07As Alan helped out Kieran with some of the finances,
0:43:07 > 0:43:10I guess he was also a "steak"-holder in the house!
0:43:11 > 0:43:15So it was also in his interests to let Kieran have some time off.
0:43:15 > 0:43:17Kieran has three other brothers to call on
0:43:17 > 0:43:20and no real deadline to meet.
0:43:20 > 0:43:25So, five months on, had he turned the house into a prime piece of real estate?
0:43:27 > 0:43:28Ah, that's more like it!
0:43:28 > 0:43:33The front now has that splendid Edwardian look back again
0:43:33 > 0:43:36and with the addition of the new porch and a tidied-up front drive,
0:43:36 > 0:43:39it's certainly greatly improved.
0:43:40 > 0:43:44And inside, medieval has made way for modern.
0:43:51 > 0:43:54Not only did they update and modernise the kitchen,
0:43:54 > 0:43:57but they found a clever way of enlarging it too.
0:43:57 > 0:44:01When we viewed the property, it had a wall going across here
0:44:01 > 0:44:04and it made the kitchen very small.
0:44:04 > 0:44:07We wanted a slightly larger kitchen
0:44:07 > 0:44:11so we decided to open this wall up
0:44:11 > 0:44:13and make the kitchen L-shaped.
0:44:13 > 0:44:17We was gonna take the other wall out,
0:44:17 > 0:44:19but that was a load-bearing wall.
0:44:19 > 0:44:21We're quite happy with the outcome
0:44:21 > 0:44:25cos now you can come in from the hallway or from the lounge.
0:44:26 > 0:44:29Downstairs looks really impressive
0:44:29 > 0:44:32and that continues upstairs with the three bedrooms.
0:44:38 > 0:44:43With the preparation work already done, the master bedroom has now been finished off.
0:44:52 > 0:44:55The jungle room has a less wild decor.
0:44:58 > 0:45:01And the other bedroom now leaves you feeling less blue!
0:45:03 > 0:45:06Now that the bathroom's been completely revamped,
0:45:06 > 0:45:10that's just left the large back garden to knock into shape.
0:45:23 > 0:45:26When we first came here, this garden was a complete mess.
0:45:26 > 0:45:31There was rubbish everywhere, it was horrible with a horrible fish pond,
0:45:31 > 0:45:34horrible garden sheds over there, it was awful.
0:45:34 > 0:45:36We got rid of the fish pond firstly.
0:45:36 > 0:45:42We decided to recycle the sleepers it was made out of to make a border and step going round there.
0:45:42 > 0:45:45Then we got rid of... There was so much rubbish.
0:45:45 > 0:45:47There was ten tonnes of rubble.
0:45:47 > 0:45:51There was six tonnes of tree cuttings around here.
0:45:51 > 0:45:55All we have to do now is pick up these slabs and re-lay them.
0:45:55 > 0:45:58We're gonna lay the rest of the slabs around the patio area.
0:45:58 > 0:46:00That's the garden finished then.
0:46:01 > 0:46:04Despite the fact this was mainly Kieran's purchase,
0:46:04 > 0:46:08his father Alan was more experienced at property development.
0:46:08 > 0:46:10So who was chief honcho here?
0:46:12 > 0:46:16My dad was mainly in charge of what was actually happening here and there.
0:46:16 > 0:46:18I was really just the main worker.
0:46:18 > 0:46:23On this job, we've all worked together and we've all helped.
0:46:23 > 0:46:26Daniel and Kieran, they've all come round helping.
0:46:26 > 0:46:29I've learnt quite a lot of things from my father.
0:46:29 > 0:46:31I've learnt how to put the kitchen,
0:46:31 > 0:46:34and learnt a lot about tiling and things like that.
0:46:34 > 0:46:39How to put in... I learnt about radiators and the skirting. All sorts of things.
0:46:39 > 0:46:45Kieran had the difficult balancing act of spending enough time here and working at his father's shop.
0:46:48 > 0:46:51It was quite awkward getting the work in.
0:46:51 > 0:46:55I work full-time in the butcher's shop and I was working long hours there.
0:46:55 > 0:46:57Half six in the morning till five o'clock.
0:46:57 > 0:47:01I was taking half days now and then and working on my days off.
0:47:01 > 0:47:05I was working non-stop for months, I was, working really hard.
0:47:05 > 0:47:08Kieran and Alan bought this house as an investment,
0:47:08 > 0:47:11probably to rent out. So is that still the plan?
0:47:11 > 0:47:16I'm not too sure what we're gonna do with the property yet.
0:47:16 > 0:47:18We've thought about renting it
0:47:18 > 0:47:21but we're gonna see what the valuation is today.
0:47:21 > 0:47:25I think at first my idea was that we were gonna buy the house,
0:47:25 > 0:47:28just do it up and sell it to try to make a bit of profit
0:47:28 > 0:47:30and then buy another house.
0:47:30 > 0:47:34But I just love the house so much, it would be nice to live here in a few years' time.
0:47:34 > 0:47:40In order for that to happen, Kieran will need the house to generate a good rental income.
0:47:40 > 0:47:43Kieran and Alan paid 183,000 for it
0:47:43 > 0:47:47and have now spent £14,000 to get this far.
0:47:47 > 0:47:50So they have nearly £200,000 invested here.
0:47:50 > 0:47:52Is it a good investment?
0:47:52 > 0:47:55What's the opinion of two local estate agents?
0:47:57 > 0:47:59First thoughts are it's a good size living room.
0:47:59 > 0:48:02Very bright. And a good size garden.
0:48:02 > 0:48:05First impressions when I come into the house now it's all finished
0:48:05 > 0:48:08is, "What a difference!" A lot brighter, lighter.
0:48:08 > 0:48:10Nice new entrance with the porch.
0:48:10 > 0:48:14I like the white walls. Everything is fresh and open.
0:48:14 > 0:48:16Some positive comments there.
0:48:16 > 0:48:21But for Kieran to hang on to this, he needs a rental return with a yield of about five per cent,
0:48:21 > 0:48:25or approximately £800 a month.
0:48:25 > 0:48:29In this current market, the rental price for this property
0:48:29 > 0:48:34would fall between £775 and £825 per calendar month.
0:48:34 > 0:48:39If I was renting this out today, I'd suggest 800 to 850 per calendar month.
0:48:39 > 0:48:44So plan A would be just about feasible with the rent just covering the costs.
0:48:44 > 0:48:48But would they be better off selling their £200,000 investment?
0:48:50 > 0:48:55Re-sale valuation, current market, our valuation would be £225,000.
0:48:55 > 0:49:01Re-sale valuation in the current market is between 210 to £220,000.
0:49:01 > 0:49:04That would see Alan and Kieran making a small profit
0:49:04 > 0:49:07of perhaps £20,000. How do they feel about that?
0:49:09 > 0:49:11Yeah, very good. Very good.
0:49:11 > 0:49:14- Very pleased with that. - Yeah, it's good.
0:49:15 > 0:49:17So will the plan change now?
0:49:17 > 0:49:20Is this a case of take the money and run, with a small profit?
0:49:20 > 0:49:27No, I think we'll rent the property out for the next few years and see how it goes.
0:49:27 > 0:49:31If Kieran gets married and wants to move in, all the better!
0:49:31 > 0:49:34Alan definitely seems pretty keen to marry Kieran off!
0:49:34 > 0:49:39But for now he'll have to settle for the way the family married their skills together
0:49:39 > 0:49:42to turn this house around.
0:49:42 > 0:49:46I'm very pleased with the outcome of the house, what we've accomplished.
0:49:46 > 0:49:47I think it's quite impressive.
0:49:47 > 0:49:51We've worked hard and it's paid off. I'm really happy.
0:50:03 > 0:50:05So, far from butchering this house,
0:50:05 > 0:50:11Alan, Kieran and the rest of the family have turned this into a cut above the rest!
0:50:22 > 0:50:27Jennifer and Jonathan had snapped up this ordinary-looking two-bed terraced house in Derby
0:50:27 > 0:50:29for £65,000.
0:50:29 > 0:50:32It seemed like the perfect purchase as a starter home
0:50:32 > 0:50:36but for them, this property was so much more.
0:50:36 > 0:50:41- It used to be my student house. - You were a student where? - Derby, yes.
0:50:41 > 0:50:44- It's got some nice memories, hasn't it?- Yes.
0:50:44 > 0:50:46Did you ever visit the house?
0:50:46 > 0:50:49- Yeah, I practically lived here as well!- Did you?
0:50:49 > 0:50:53So this is a special place to Jonathan and Jennifer.
0:50:53 > 0:50:57But sometimes in reality, things don't quite live up to the memory.
0:50:57 > 0:51:01So has this nostalgic return been the right move for them?
0:51:01 > 0:51:04Well, just four months later, we're back to see.
0:51:05 > 0:51:10It looks as though they may be holding on to the memories of the past too much,
0:51:10 > 0:51:13as there don't really seem to be too many changes.
0:51:16 > 0:51:19Though there have been some alterations in the living room.
0:51:19 > 0:51:23OK, we've moved the door in here. It was in the middle of the room before.
0:51:23 > 0:51:27Now we've moved it to the side because the furniture fits better.
0:51:27 > 0:51:31We stripped the wallpaper off the ceiling, decorated the walls,
0:51:31 > 0:51:36carpeted in here and the windows have been replaced as with the rest of the house.
0:51:36 > 0:51:40New light fitting, curtains and we've got a fire on order.
0:51:40 > 0:51:43When that's done, we'll be happy really with this room.
0:51:43 > 0:51:46They're not too far away from completing the lounge.
0:51:46 > 0:51:50And they've also just about finished the master bedroom.
0:51:53 > 0:51:58We've painted the walls in a sort of milky colour.
0:51:58 > 0:52:01The ceiling has been repainted.
0:52:01 > 0:52:07The windows have all been replaced over here and over here.
0:52:07 > 0:52:09New carpets.
0:52:10 > 0:52:11So yeah,
0:52:11 > 0:52:14this room's basically pretty liveable.
0:52:14 > 0:52:16And we're happy with it.
0:52:17 > 0:52:20Of course, this was Jennifer's student digs
0:52:20 > 0:52:22when she and Jonathan were at university
0:52:22 > 0:52:25and when they first started going out together.
0:52:25 > 0:52:28How does it feel to be back living in the house five years on?
0:52:28 > 0:52:31It's nice to be back.
0:52:31 > 0:52:38I think we've managed to change it sufficiently so it feels more like a grown-up adult house,
0:52:38 > 0:52:40than a student pad.
0:52:40 > 0:52:44When you were here as a student, it was quite a different house.
0:52:44 > 0:52:47Because you had a bedroom down here in this room,
0:52:47 > 0:52:50and two other people living upstairs as well,
0:52:50 > 0:52:54so it's not your own space, or our own space.
0:52:54 > 0:52:57And now it is, so it does feel quite different.
0:52:57 > 0:53:00- Yep.- Apart from the fact it doesn't look the same now, either.
0:53:00 > 0:53:03And we don't have to pay rent every month!
0:53:03 > 0:53:08No rent, but it is now their own money going towards the upkeep and renovations.
0:53:08 > 0:53:11Getting the work done isn't down to a landlord to sort out.
0:53:11 > 0:53:13It's up to them now!
0:53:13 > 0:53:16It's been us, but we've had a lot of help from family.
0:53:16 > 0:53:19Yeah. They've been very hands-on with us.
0:53:19 > 0:53:21We wouldn't have got to where we've got now
0:53:21 > 0:53:24- if we hadn't had that help.- No.
0:53:25 > 0:53:30Jennifer and Jonathan worked on the house for five to six weeks before moving in.
0:53:30 > 0:53:33That's when they made the bulk of the progress.
0:53:33 > 0:53:37Since then, things have slowed down a bit and there are still a few jobs to do.
0:53:38 > 0:53:40We've still got the dining room to do.
0:53:40 > 0:53:44There's a bit of a problem in that some of the plasterwork needs fixing.
0:53:44 > 0:53:48We're gonna put a bath into the bathroom to give us a proper bathroom
0:53:48 > 0:53:51instead of just a shower. And then...
0:53:51 > 0:53:53Redecorate the hallway.
0:53:53 > 0:53:56The hallway. And tackle the back garden.
0:53:56 > 0:53:58- Yep.- That's a job for the summer.
0:53:58 > 0:54:01And a new fire in here as well to complete it all.
0:54:01 > 0:54:03I guess they're about half-way there.
0:54:03 > 0:54:06Is that reflected in their costs to date?
0:54:08 > 0:54:12We've kept pretty much to the original budget of five to 6,000 before moving in.
0:54:12 > 0:54:15But obviously there's still more work to do.
0:54:15 > 0:54:19So I think we'll end up spending more than what we'd hoped to originally.
0:54:19 > 0:54:25But if we can get a bathroom put in for maybe about £1,000 or not too much more than that,
0:54:25 > 0:54:26then we shouldn't go too much over.
0:54:26 > 0:54:30They paid 65,000 for the house.
0:54:30 > 0:54:32Assuming a budget of around 8,000
0:54:32 > 0:54:35they shouldn't exceed 75,000.
0:54:35 > 0:54:40So, are there signs that their first property purchase was a sound one?
0:54:40 > 0:54:42What do two local estate agents think?
0:54:48 > 0:54:52I think what they've done so far has been their own taste
0:54:52 > 0:54:56but they've done it nicely. Obviously it's a rolling programme.
0:54:56 > 0:55:00They've done it bit by bit and as they would like to see it.
0:55:00 > 0:55:03There's not a lot of work been done so far in the house.
0:55:03 > 0:55:06Definitely a work-in-progress project.
0:55:06 > 0:55:10But they've put new windows in which look like nice quality
0:55:10 > 0:55:11and they're making a start.
0:55:11 > 0:55:14After costs and additional finishing expenses,
0:55:14 > 0:55:17Jonathan and Jennifer are likely to spend around 75 grand
0:55:17 > 0:55:19upgrading their student digs.
0:55:19 > 0:55:22Was it money well spent?
0:55:22 > 0:55:26When finished off, it will have a value of about £85,000.
0:55:26 > 0:55:29Once the house is finished, if they decided to sell,
0:55:29 > 0:55:32it should fetch a price of around £85,000.
0:55:32 > 0:55:35That's all right, a possible £10,000 profit.
0:55:35 > 0:55:38That's pretty good news. How do they feel about that?
0:55:40 > 0:55:43We were probably hoping it would go nearer 90.
0:55:43 > 0:55:46But the market has taken a bit of a tumble at the moment
0:55:46 > 0:55:49so it's still a good return for us.
0:55:49 > 0:55:52Yes. We're not really surprised at that, to be fair.
0:55:52 > 0:55:55It's still a good investment for us.
0:55:55 > 0:55:57So, yeah!
0:55:57 > 0:56:00Has their first taste of property ownership
0:56:00 > 0:56:02given them an appetite for more?
0:56:09 > 0:56:13I think at some stage in the future we might look at developing.
0:56:13 > 0:56:17We'd like to, but at the moment it wouldn't be very practical
0:56:17 > 0:56:19but maybe in the future.
0:56:19 > 0:56:23I think we need to finish one house before moving on to the next!
0:56:27 > 0:56:31They do say you should never go back as it can never be the same again.
0:56:32 > 0:56:36But in this case, Jennifer and Jonathan seem to have profited
0:56:36 > 0:56:38from a return to pastures old.
0:56:40 > 0:56:43And it's been a very happy homecoming.
0:56:55 > 0:56:58Join us next time for another ride on the renovation rollercoaster!
0:56:58 > 0:57:01- We'll see you then!- Goodbye! - Goodbye!
0:57:21 > 0:57:24Subtitles by Red Bee Media Ltd