0:00:02 > 0:00:06In a challenging housing market it's more important than ever to buy in the right location.
0:00:06 > 0:00:10Buying a property in the right place will make it easier to sell and rent out.
0:00:10 > 0:00:14Because there are property auctions held all around the country,
0:00:14 > 0:00:17the chances are you'll find your home under the hammer.
0:00:42 > 0:00:44As we know, buying property
0:00:44 > 0:00:47can be one of the most stressful things you do.
0:00:47 > 0:00:49And it's important not to underestimate
0:00:49 > 0:00:52the amount of pressure and problem solving that's involved.
0:00:52 > 0:00:55So, can our buyers take the strain?
0:00:55 > 0:00:56Let's find out.
0:00:57 > 0:01:01Coming up, there's a property to get your teeth into in The Potteries.
0:01:01 > 0:01:03This is your property fodder.
0:01:03 > 0:01:06It is a two bedroom mid-terrace.
0:01:07 > 0:01:12There's something missing from this three-bed house in Gosport, Hampshire.
0:01:12 > 0:01:16If you look out here, well, basically, there's no roof.
0:01:18 > 0:01:23And I'm worried about the back bedroom of the semi-detached in Leeds.
0:01:25 > 0:01:27Oh, dear.
0:01:28 > 0:01:31All these properties have been sold at auction.
0:01:31 > 0:01:35We'll find out who bought them and what they paid for them
0:01:35 > 0:01:37when they went under the hammer.
0:01:40 > 0:01:43Well, you'd have to have been living on a different planet
0:01:43 > 0:01:48not to know that property prices have gone through some sticky times recently,
0:01:48 > 0:01:53and it's no different here in Stoke where last year they dropped by 13%.
0:01:53 > 0:01:57However, in the good old days of 2005,
0:01:57 > 0:02:04he average terraced house was going up a massive £700 a week.
0:02:04 > 0:02:10Now, the key is to spot when that is about to happen again.
0:02:11 > 0:02:13And that's the problem -
0:02:13 > 0:02:18barring a crystal ball, how do you second guess the property market?
0:02:18 > 0:02:22Well, the answer may well be found here in The Potteries.
0:02:24 > 0:02:27I'm in Fenton, to see the kind of property
0:02:27 > 0:02:30that I think acts as a real barometer
0:02:30 > 0:02:32to the British housing market in general.
0:02:32 > 0:02:35This is your property fodder.
0:02:35 > 0:02:38It is a two-bedroom mid-terrace.
0:02:38 > 0:02:41It had a guide price of 35,000 quid,
0:02:41 > 0:02:44but what did it sell for at a recent auction?
0:02:44 > 0:02:48I'll tell you later. Let's go and have a look round first.
0:02:48 > 0:02:52Outside this place looks to be in pretty good nick.
0:02:52 > 0:02:56It's already double-glazed, which should save a bob or two,
0:02:56 > 0:03:00but I'm guessing there's more to do inside.
0:03:00 > 0:03:03Well, I guess you're not going to expect anything too spectacular
0:03:03 > 0:03:06or different from any other two-bedroom terrace and,
0:03:06 > 0:03:09you know what? You'd be absolutely right.
0:03:09 > 0:03:11But that's one of the great things about them,
0:03:11 > 0:03:13you know what you're going to get.
0:03:13 > 0:03:15This one, on the face of it, it doesn't smell bad,
0:03:15 > 0:03:17reasonable sized ceiling height.
0:03:17 > 0:03:21It's got a gas fire which obviously needs replacing,
0:03:21 > 0:03:24but overall, yep, pretty much as I predicted.
0:03:24 > 0:03:26It's got a few nice original features.
0:03:26 > 0:03:30I'd certainly take some time to do things like open up the fireplace
0:03:30 > 0:03:32because that would be lovely as a central feature
0:03:32 > 0:03:35of this rear room here. I mean, look at the floor.
0:03:35 > 0:03:37I don't know if it's possible to get that sorted out,
0:03:37 > 0:03:40but it's quarry tiles, they would actually be quite pleasant.
0:03:40 > 0:03:42It's not a bad sized rear room.
0:03:42 > 0:03:44You've got the stairs to your bedrooms there
0:03:44 > 0:03:46and through into the kitchen.
0:03:46 > 0:03:49Built in an extension on the back, it's not a bad sized space.
0:03:49 > 0:03:51Classic kind of layout there.
0:03:51 > 0:03:54You've got the loo and the bathroom out through the kitchen there.
0:03:54 > 0:03:59Not ideal, but actually pretty much what people expect from a property like this,
0:03:59 > 0:04:01so probably not worth the expense of moving it.
0:04:01 > 0:04:04All in all, it does what it's supposed to do.
0:04:04 > 0:04:07And, whilst we're talking about original features,
0:04:07 > 0:04:10there are some lovely high skirting boards here
0:04:10 > 0:04:13along with original coving and cornice.
0:04:13 > 0:04:17Upstairs there are two decent sized bedrooms,
0:04:17 > 0:04:20one at the back and one at the front.
0:04:20 > 0:04:24At the rear, this lovely cobbled alleyway leads to off-street parking.
0:04:24 > 0:04:28What does a local estate agent make of this as a potential investment?
0:04:30 > 0:04:33In terms of renovating the property,
0:04:33 > 0:04:36taking into account new kitchen, new bathroom, rewire,
0:04:36 > 0:04:38I would imagine you need to spend
0:04:38 > 0:04:40somewhere in the region of 10,000 to 12,000
0:04:40 > 0:04:43to get it to the standard that we'd want it to be
0:04:43 > 0:04:47and I think what you would do is make the best of the layout as it is.
0:04:47 > 0:04:51I don't think there's any scope for changing this layout.
0:04:51 > 0:04:55If you picked this up for around the £35,000 guide price,
0:04:55 > 0:04:58then with the £10,000 to £12,000 renovation costs,
0:04:58 > 0:05:01this could make a very worthwhile investment.
0:05:01 > 0:05:04Once the renovations are done on this property,
0:05:04 > 0:05:07the potential marketing figure at the moment
0:05:07 > 0:05:11would probably be round about 69,950 as an asking price.
0:05:11 > 0:05:16I would anticipate it being more an option for an investor to rent out in the short term.
0:05:16 > 0:05:21With a contemporary gloss on it, I would expect it to be doing
0:05:21 > 0:05:25£425 per calendar month easily, possibly a little more.
0:05:25 > 0:05:29And that could mean a 10% rental return.
0:05:32 > 0:05:35So, a perfectly respectable solid little house
0:05:35 > 0:05:40that would make a great home or a good rental investment.
0:05:40 > 0:05:43Now, remember, I think this is a barometer of UK property prices
0:05:43 > 0:05:46and activity at the auctions in particular.
0:05:46 > 0:05:48It had a guide price of 35,000 quid.
0:05:48 > 0:05:51What happened when it went under the hammer?
0:05:54 > 0:05:58Lot 37 is Turley Street or Tiley Street in Fenton.
0:05:58 > 0:06:0230, are you going to say? 30, I'm bid in the middle.
0:06:02 > 0:06:05Thank you. At £30,000. 35 can I say now?
0:06:05 > 0:06:0735 against the wall. 40.
0:06:07 > 0:06:0945 against the wall?
0:06:09 > 0:06:10Take one off you.
0:06:10 > 0:06:14At £40,000. 41.
0:06:14 > 0:06:1742 is it now? New bidder front row.
0:06:17 > 0:06:22£42,000. 43. 44.
0:06:22 > 0:06:2644 and a half. 45. Another half?
0:06:26 > 0:06:3045 and a half. 46. And a half.
0:06:30 > 0:06:3247.
0:06:32 > 0:06:34Where, where, where?
0:06:34 > 0:06:37By the curtain, there we go. 47 and a half.
0:06:37 > 0:06:3948.
0:06:39 > 0:06:43At 48,000. 48 and a half. Yeah.
0:06:43 > 0:06:4649. 49 and a half.
0:06:46 > 0:06:4850.
0:06:48 > 0:06:5150. And a half.
0:06:51 > 0:06:53No? At 50,500 then.
0:06:53 > 0:06:58A new bidder right at the back. 51.
0:06:58 > 0:07:0451 and a half. 52. 52 and a half. 53?
0:07:04 > 0:07:07Shaking his head. 52 and a half. Still with you, sir.
0:07:07 > 0:07:10At 52,500 then first time.
0:07:10 > 0:07:1652,500. He's back in. 53. And a half.
0:07:16 > 0:07:18Definite? 53 and a half then.
0:07:18 > 0:07:23Bid's here. At 53,500 the first time.
0:07:23 > 0:07:2553,500, second time. Third.
0:07:27 > 0:07:2954 in the aisle. 54 and a half.
0:07:29 > 0:07:3155 it'll cost you now.
0:07:31 > 0:07:33No. That was short and sweet.
0:07:33 > 0:07:39£54,500, then. Left still at 54,500.
0:07:39 > 0:07:41Are we all done? First time.
0:07:41 > 0:07:45Second time. Third and final time at 54,500.
0:07:45 > 0:07:48All done? 54,500.
0:07:48 > 0:07:51Well done, you bought it.
0:07:51 > 0:07:54There was a lot of interest in this one and for 54,500,
0:07:54 > 0:07:57nearly £20,000 over the guide price,
0:07:57 > 0:08:00the determined winning bidder was Kevin.
0:08:00 > 0:08:03He owns a heating and ventilation company,
0:08:03 > 0:08:06but has been investing in property for some time.
0:08:06 > 0:08:10His eldest son, Dan, will be joining him on this project.
0:08:10 > 0:08:13I met up with them at the house.
0:08:15 > 0:08:18Kevin, Dan, lovely to meet you both. Congratulations!
0:08:18 > 0:08:22- So, why did you pick this property? - Location. Good location.
0:08:22 > 0:08:25The house itself has got a lot of character.
0:08:25 > 0:08:27You know, original features.
0:08:27 > 0:08:30I like the block, there's only a few houses in the block.
0:08:30 > 0:08:34It's more of a cottage to me than a terraced house, you know?
0:08:34 > 0:08:35So, that's a nice benefit.
0:08:35 > 0:08:38And every house in this little block,
0:08:38 > 0:08:40both sides is really well kept, you know?
0:08:40 > 0:08:43And I want to make this one of them.
0:08:43 > 0:08:46- So, tell me about you two, then. - Yeah, well, this is Dan, my lad.
0:08:48 > 0:08:50He's 20, yeah?
0:08:50 > 0:08:54I started in business, not building business, not property business,
0:08:54 > 0:08:57- 20 years ago, the week he was born. - Oh, wow!
0:08:57 > 0:08:58Not a good time to start, really,
0:08:58 > 0:09:01but things have went successful or have gone successful
0:09:01 > 0:09:04and Dan started in the business now what, 18 month...
0:09:04 > 0:09:07Yeah, about two years. I left college and then he said,
0:09:07 > 0:09:09"You know, you've got to find something to do,"
0:09:09 > 0:09:12so I went with him and he said "See what you enjoy,"
0:09:12 > 0:09:18See what I was enjoying, and went on and did a course in joinery and stuff and now we're in it and...
0:09:18 > 0:09:21So, is the idea that you're going to work together on projects?
0:09:21 > 0:09:24Well, if he pulls his finger out and performs, yeah.
0:09:27 > 0:09:31Kevin obviously has high expectations of his eldest son, Dan.
0:09:31 > 0:09:34With youngest son, Matt, also lined up to help
0:09:34 > 0:09:39and Mum doing the bookkeeping, this renovation is a real family affair.
0:09:41 > 0:09:44So, Dan, give me an idea of what you're going to do to this place?
0:09:44 > 0:09:46I'll probably come in, you know,
0:09:46 > 0:09:50get all the bulk of it out, all the carpets, all the messy stuff first.
0:09:50 > 0:09:52Probably start stripping the walls down.
0:09:52 > 0:09:55Basically, give it a good gut first before we start doing anything.
0:09:55 > 0:09:57Get all the messy stuff out of the way.
0:09:57 > 0:10:00This floor'll have to come up cos it's got no damp course.
0:10:00 > 0:10:04- These tiles, as you can probably see, the...- Lovely.- £1.50 each.- Are they?
0:10:04 > 0:10:06Reclamation yard, yeah.
0:10:06 > 0:10:09So you're going to take them up and sell them on?
0:10:09 > 0:10:12No, what I'm hoping to do is open the chimney breast out,
0:10:12 > 0:10:16make them a feature, and then we'll reuse the quarry tiles in the hearth.
0:10:16 > 0:10:19- Oh!- We'll try and reuse the stuff in the house if we can.
0:10:19 > 0:10:22The main thing is the kitchen and the bathroom and then...
0:10:22 > 0:10:26It'll be a good house. It will be replastered when this chip...
0:10:26 > 0:10:28The chip paper comes off, if Dan gets there.
0:10:28 > 0:10:32Very kind of you to give him that job!
0:10:32 > 0:10:35One of the worst jobs in the world, scraping off woodchip!
0:10:35 > 0:10:39- There is wood in it, he is a joiner! - That's a bit of a tenuous...
0:10:40 > 0:10:43Dan definitely drew the short straw here,
0:10:43 > 0:10:45but he says he's up for the challenge
0:10:45 > 0:10:49and it's good to know that Kevin plans to make the most of the character of this place.
0:10:49 > 0:10:52They've set themselves an £8,000 to £10,000 budget and,
0:10:52 > 0:10:55at the moment, they're planning to rent it out,
0:10:55 > 0:10:59but it all depends on the state of the market when the work is complete.
0:11:02 > 0:11:07- What's the timescale for doing the work?- If all goes to plan, and I'm looking at Dan here!
0:11:07 > 0:11:12If all goes to plan and my main business is a bit quieter and we can concentrate on this,
0:11:12 > 0:11:14we could do this in two month, easily.
0:11:14 > 0:11:15To be honest, probably six week.
0:11:15 > 0:11:19- So, Dan, what do you think of that timescale?- Yeah, I think...
0:11:19 > 0:11:22I mean, we'll get it in time easy. You know, just work hard at it.
0:11:22 > 0:11:27If we just crack on it we're here for a good couple of weeks, yeah, we'll be easily...
0:11:27 > 0:11:30Good luck to you both and I hope it turns out well
0:11:30 > 0:11:32and especially good luck with getting the wood chip off!
0:11:32 > 0:11:34- I'm going to go at it!- Yeah.
0:11:34 > 0:11:37- Nice, neat lines will be here when you come back. - I can't wait to see it.
0:11:42 > 0:11:46So, there you have it, the auction rooms are buzzing once again and
0:11:46 > 0:11:50properties are surpassing their reserve prices.
0:11:50 > 0:11:52In terms of this one, well, Kevin and Dan,
0:11:52 > 0:11:55I think they've got the experience to make it happen,
0:11:55 > 0:11:58but I'm not sure that Kevin is going to be
0:11:58 > 0:12:01quite the relaxed taskmaster that Dan's expecting,
0:12:01 > 0:12:03and he's got all that woodchip to get off!
0:12:03 > 0:12:06How's he going to get on? You can find out later in the show.
0:12:08 > 0:12:11This is Gosport in Hampshire.
0:12:11 > 0:12:15Now, the town overlooks Portsmouth, which is just across the harbour
0:12:15 > 0:12:20and, as you can see behind me, there's the Spinnaker Tower which is Portsmouth's famous landmark.
0:12:20 > 0:12:23Now, until the last quarter of the 20th century,
0:12:23 > 0:12:26this area was a major naval and military centre.
0:12:26 > 0:12:30Well, I'm here to see a property today, it's just around the corner
0:12:30 > 0:12:33and it's only half a mile from the town centre.
0:12:35 > 0:12:38Although Gosport doesn't have its own railway station,
0:12:38 > 0:12:43it does have good schools and a regular ferry service across the harbour to Portsmouth.
0:12:43 > 0:12:46Access to London and the rest of the country is easy.
0:12:48 > 0:12:52I'm here to see this three-bed mid-terrace
0:12:52 > 0:12:57which had a guide price of just 70,000 to 75,000.
0:12:57 > 0:13:00Now, that's pretty good value for a property around here,
0:13:00 > 0:13:02but there is a reason for that.
0:13:02 > 0:13:07Now, the catalogue says this place needs "A full programme of refurbishment".
0:13:07 > 0:13:13Well, a lot of auction properties usually do, but I've been told that I might need a hard hat.
0:13:13 > 0:13:17Very ominous. I'm going in!
0:13:18 > 0:13:23It does look a bit tatty and run down from the outside, it's on a busy main road,
0:13:23 > 0:13:27but I haven't seen enough to explain that low guide price yet.
0:13:27 > 0:13:31There's literally years worth of mail in this hallway, it's just
0:13:31 > 0:13:35completely and utterly littered, and it's really run down inside.
0:13:35 > 0:13:37Now, I don't know about a hard hat, though.
0:13:37 > 0:13:41You can see all the old furniture's been left by the previous occupant.
0:13:41 > 0:13:45There's a big hole over there in the ceiling by the bay window.
0:13:45 > 0:13:48So, you know, it needs some care and attention,
0:13:48 > 0:13:50but once you get the skip outside
0:13:50 > 0:13:52and you completely clear this place out,
0:13:52 > 0:13:54dump it all in there, give it a clean,
0:13:54 > 0:13:57it will look like a completely different house.
0:13:57 > 0:14:00It does need a lot of TLC.
0:14:00 > 0:14:03Now, this kitchen looks like it hasn't been touched in years.
0:14:03 > 0:14:07It's quite surprising because if you look over here
0:14:07 > 0:14:10you can see the washing machine has dropped into the ground.
0:14:10 > 0:14:13The tiles are all coming off.
0:14:13 > 0:14:14Ah-ha!
0:14:14 > 0:14:17Now I know why the hard hat was mentioned,
0:14:17 > 0:14:20because if you look out here,
0:14:20 > 0:14:24well, basically, there's no roof on this extension out the back.
0:14:24 > 0:14:27You can see the sky, you can see daylight,
0:14:27 > 0:14:30it has just collapsed and, look, there it is.
0:14:30 > 0:14:33And that is the only bathroom in the house.
0:14:33 > 0:14:37It looks more like a garden. Talk about bringing the outside in!
0:14:44 > 0:14:47This place isn't just a refurbishment job,
0:14:47 > 0:14:49it's a major renovation project.
0:14:50 > 0:14:55It looks as though the upstairs is in the same state as the downstairs.
0:14:55 > 0:14:59Now, in the catalogue there's a statement that I have never seen before
0:14:59 > 0:15:03and it's a real reflection of the current state of the money market at the moment.
0:15:03 > 0:15:09It says "This property will not be suitable for high loan to value mortgage dependent clients."
0:15:09 > 0:15:14Now, that means it's unmortgageable unless you have a large deposit.
0:15:14 > 0:15:17Basically, it's cash buyers only for this one.
0:15:17 > 0:15:19But if you've got the readies available,
0:15:19 > 0:15:22at around the guide price of between 70 to 75 grand,
0:15:22 > 0:15:25you'd be getting a pretty decent-sized house.
0:15:25 > 0:15:29If you can look past the piles of rubbish, upstairs you'll find two
0:15:29 > 0:15:32large double bedrooms and a generous single.
0:15:32 > 0:15:34You could move the bathroom up there,
0:15:34 > 0:15:36but that would mean sacrificing a bedroom.
0:15:36 > 0:15:38But there is an alternative,
0:15:38 > 0:15:41I'm just not sure it makes financial sense.
0:15:44 > 0:15:47Due to the extent of damage inside here
0:15:47 > 0:15:51it might be worth rebuilding this extension completely.
0:15:51 > 0:15:54It's worth thinking about applying for planning permission
0:15:54 > 0:15:57to also add another storey like they have over there.
0:15:57 > 0:15:58You could make the kitchen bigger,
0:15:58 > 0:16:02you could move the bathroom upstairs without sacrificing a bedroom,
0:16:02 > 0:16:05but you've got to weigh up whether it's cost effective to do so
0:16:05 > 0:16:07and, in this climate, probably not.
0:16:09 > 0:16:12But you do have a great sized family garden at the back.
0:16:12 > 0:16:15Curiously, given the state of the inside,
0:16:15 > 0:16:17it isn't completely overgrown.
0:16:17 > 0:16:21Hmmm, some investigation is needed.
0:16:21 > 0:16:24I found out a little more from neighbour Sarah
0:16:24 > 0:16:29who's obviously delighted that this house went up for auction.
0:16:29 > 0:16:35It's been the bane of our life since 1999 when the property was vacated.
0:16:35 > 0:16:40The neighbour the other side has been maintaining the garden to keep it looking, you know...
0:16:40 > 0:16:46Because we were extremely worried about people squatting and fires.
0:16:46 > 0:16:49We've had rats, we've had damp,
0:16:49 > 0:16:53we've had to have the council in on numerous occasions.
0:16:53 > 0:16:54You must be so relieved to think
0:16:54 > 0:16:57that somebody's taking over this house!
0:16:57 > 0:16:59Oh, I just can't tell you how relieved I am.
0:16:59 > 0:17:03We're absolutely thrilled, all of us, all the neighbours are.
0:17:06 > 0:17:08The house has been abandoned for years.
0:17:08 > 0:17:14It's got rats, a derelict rear extension and an unusable bathroom,
0:17:14 > 0:17:17so even at a guide price of 70,000 to 75,000
0:17:17 > 0:17:20was this really a good buy?
0:17:21 > 0:17:25I asked a local estate agent for the facts and figures.
0:17:25 > 0:17:28Currently there would still be a good demand
0:17:28 > 0:17:30for a property such as this in good condition
0:17:30 > 0:17:32and you would look to achieve
0:17:32 > 0:17:34somewhere between £130,000 and £135,000.
0:17:34 > 0:17:38With the house guided at 70,000 to 75,000,
0:17:38 > 0:17:41that would leave around £60,000
0:17:41 > 0:17:45for everything that needs doing here and room for a profit.
0:17:45 > 0:17:48With an expected rental income
0:17:48 > 0:17:52of around £625 to £650 per calendar month,
0:17:52 > 0:17:57you could be looking at a 7% to 8% return here.
0:17:58 > 0:18:00This isn't a property for amateurs.
0:18:00 > 0:18:02It's in a complete state.
0:18:02 > 0:18:04It needs everything doing to it
0:18:04 > 0:18:08and that extension will probably have to be completely rebuilt
0:18:08 > 0:18:12and, more importantly, it's so bad you won't be able to get a big mortgage on it.
0:18:12 > 0:18:17So, who was the buyer who had enough cash to splash on this place
0:18:17 > 0:18:18in the auction room?
0:18:18 > 0:18:21Lot 17, Anne's Hill Road in Gosport, Hampshire.
0:18:21 > 0:18:26This is a terraced house in need of comprehensive refurbishment.
0:18:26 > 0:18:32If somebody was to bid the sum of just £60,000.
0:18:32 > 0:18:34Is somebody prepared to get me underway at that...
0:18:34 > 0:18:36Thank you, sir. 60 I've got.
0:18:36 > 0:18:4165? 65,000 I have in front of me.
0:18:41 > 0:18:4370,000, sir. 75?
0:18:43 > 0:18:45Yeah. 75,000 we've got.
0:18:45 > 0:18:4676,000 on the wall here.
0:18:46 > 0:18:50Looking for 77. 77,000 seated here.
0:18:50 > 0:18:5478 I have got. 79, sir?
0:18:54 > 0:18:56I'll take the half at this stage. 78 and a half.
0:18:56 > 0:18:59Now back to you at 79. 79,500.
0:18:59 > 0:19:0379 and a half he says yes, to.
0:19:03 > 0:19:0680,000 the gentleman's on the wall saying yes to.
0:19:06 > 0:19:08Now I'm looking for that same. No?
0:19:08 > 0:19:1380,000 we have got. New bidder at 80,500 on the back wall.
0:19:13 > 0:19:16Now looking for 81. 81 and a half?
0:19:16 > 0:19:1981,500 on the back wall.
0:19:19 > 0:19:2182,000 we have now.
0:19:21 > 0:19:2482 and a half thousand the gentleman comes back with.
0:19:24 > 0:19:2783, sir? No.
0:19:27 > 0:19:3282,500 on the back wall then, I have for the first time.
0:19:32 > 0:19:3582,500 I have for the second time.
0:19:35 > 0:19:4182,500 for the third and final time.
0:19:41 > 0:19:43Your property, sir, well done. Your number, please?
0:19:43 > 0:19:47Coming in right at the end with a bid of £82,500
0:19:47 > 0:19:53for that derelict mid-terrace in Gosport was local man Keith.
0:19:53 > 0:19:58He's bought this place in partnership with friend Neil and they plan to let it out.
0:19:58 > 0:20:00This was Keith's first auction
0:20:00 > 0:20:02and it's to be their first joint project.
0:20:02 > 0:20:05Have they bitten off more than they can chew?
0:20:05 > 0:20:07I met up with them at the property.
0:20:07 > 0:20:12- So, guys, what was it that you loved so much about this property? - The challenge!
0:20:12 > 0:20:14The luxury?
0:20:14 > 0:20:16- That, too!- I don't think so!
0:20:16 > 0:20:18I mean, you know, you have got no back end of the house.
0:20:18 > 0:20:23It's collapsed, almost. You can even see by the washing machine how that's fallen into the floor.
0:20:23 > 0:20:26Yeah, years of water damage has come through the roof
0:20:26 > 0:20:28and out of the washing machine, but it's all repairable.
0:20:28 > 0:20:32As soon as we strip it out we can see how far the damage has gone
0:20:32 > 0:20:34and then work our way from there, really.
0:20:34 > 0:20:38And what about the fact that, on the details of the auction catalogue,
0:20:38 > 0:20:41it mentioned, you know, it's basically for cash buyers only.
0:20:41 > 0:20:45If it was mortgageable I honestly believe it probably would have gone
0:20:45 > 0:20:48for a considerable amount more money than we actually obtained it for.
0:20:48 > 0:20:51So, you're quite pleased you got it for 82 and a half?
0:20:51 > 0:20:54- Yes, we are, very.- That really is quite good value for money
0:20:54 > 0:20:56when you think it's a big house, isn't it?
0:20:56 > 0:21:00It's a good traditional town three-bedroom property.
0:21:00 > 0:21:02They're much sought after in the area
0:21:02 > 0:21:05and by putting it back with our budget
0:21:05 > 0:21:07we think we could turn it round,
0:21:07 > 0:21:09put it back out on rent and be very pleased.
0:21:11 > 0:21:15Keith and Neil would have gone up to a maximum of £85,000 at the auction.
0:21:15 > 0:21:18That means they can allow themselves slightly more
0:21:18 > 0:21:21than their initial 30 grand renovation budget.
0:21:21 > 0:21:25But have they got the experience to take on a project like this?
0:21:25 > 0:21:31I've done a few. I'm a carpenter by trade and I can do most things,
0:21:31 > 0:21:35so that adds and keeps the costs down obviously as much as we can.
0:21:35 > 0:21:38- So, that would be my main input, I think.- What about you?
0:21:38 > 0:21:41Don't ask me that question! My strengths, I don't know?
0:21:41 > 0:21:43Project management, shall we say?
0:21:43 > 0:21:45No, we both have got a skill of hand,
0:21:45 > 0:21:47so between us it shouldn't be a problem.
0:21:47 > 0:21:49What plans have you got for the house?
0:21:49 > 0:21:52Obviously putting everything right that's wrong.
0:21:52 > 0:21:54Are you intending on doing building work?
0:21:54 > 0:21:57No real build work other than the roof repairs at the back
0:21:57 > 0:22:00and also a small roof repair at the front of the property.
0:22:00 > 0:22:02Everything's going to have to be taken back.
0:22:02 > 0:22:06Everything's going to be replastered, rewired, new central heating.
0:22:06 > 0:22:09We're going to convert this room back into two receptions
0:22:09 > 0:22:13because we think that suits the rental market specifically.
0:22:13 > 0:22:18Now, what about the thought of possibly having a double storey extension out the back and...?
0:22:18 > 0:22:20It wouldn't value high enough for us to do.
0:22:20 > 0:22:24It would cost too much, so it's not worth doing, in our opinion.
0:22:24 > 0:22:27- And are you going to keep the bathroom downstairs?- Yes.
0:22:27 > 0:22:30Because you need the three bedrooms to let upstairs?
0:22:30 > 0:22:34We need the three bedrooms upstairs, yes, but also we are looking
0:22:34 > 0:22:37into putting just a toilet upstairs for the children.
0:22:37 > 0:22:39Now, that is a good idea.
0:22:39 > 0:22:44The guys are obviously looking at this as a family rental so a loo upstairs will really help.
0:22:44 > 0:22:50They've set a target of three months to do all the work, but there's one thing that really worries them.
0:22:50 > 0:22:51- The rats.- Rats.
0:22:51 > 0:22:55No, I think once we actually start the work probably the rats will...
0:22:55 > 0:22:57- Vacate the property. - Vacate the property.
0:22:57 > 0:23:01- We're hoping they will do, anyway! - They'll move on to another location!
0:23:01 > 0:23:03- Yeah.- That's what we're expecting.
0:23:03 > 0:23:05Good luck. It's going to be really exciting
0:23:05 > 0:23:07seeing the end product here.
0:23:07 > 0:23:10- Really nice to meet you today.- And you. Thanks very much.- Thank you.
0:23:16 > 0:23:21This is Neil and Keith's first development project together and they've picked a pretty major one!
0:23:21 > 0:23:26Will they be successful or will this cash buy become a money pit?
0:23:26 > 0:23:28Find out later in the programme.
0:23:30 > 0:23:35Still to come, there's work to do at this three-bedroom semi in Roundhay, Leeds.
0:23:37 > 0:23:39Well, that needs sorting out, doesn't it?
0:23:40 > 0:23:45We return to Gosport to find out what's made the neighbours so happy.
0:23:45 > 0:23:49To see it evolve into what it is today is lovely.
0:23:51 > 0:23:56But first, in Fenton, has Dan managed to deal with all that woodchip wallpaper?
0:23:56 > 0:23:59It's a hassle to get off but, stick at it, get your teeth into it.
0:24:03 > 0:24:08Two-bedroom terraced houses like this one in Fenton in The Potteries
0:24:08 > 0:24:11are the life blood of the British property market.
0:24:11 > 0:24:14They're ideal for first-time buyers and renters alike
0:24:14 > 0:24:19and you sense that the market may have started moving again
0:24:19 > 0:24:24when a property developer like Kevin was prepared to pay £54,500
0:24:24 > 0:24:28for a house that was guided at just 35,000.
0:24:28 > 0:24:33Kevin had a budget of 8,000 to 10,000 and a timescale of eight weeks to turn this place around.
0:24:33 > 0:24:37Somehow he'd managed to persuade his son and trained joiner Dan
0:24:37 > 0:24:42that removing all the chipped wallpaper was his responsibility.
0:24:44 > 0:24:46There is wood in it, he is a joiner!
0:24:46 > 0:24:49- You really drew a short straw there, didn't you?- I know.
0:24:49 > 0:24:54So, ten weeks on, how have Dan and Kevin got on?
0:24:54 > 0:24:57The property was already double-glazed,
0:24:57 > 0:25:00so there wasn't much to do at the front,
0:25:00 > 0:25:02but they have fitted a new front door
0:25:02 > 0:25:06which leads into a transformed living room.
0:25:06 > 0:25:11The woodchip has been replaced with freshly plastered walls and accent wallpaper.
0:25:11 > 0:25:15Where the old nondescript fire once stood
0:25:15 > 0:25:18there's now a lovely feature fireplace
0:25:18 > 0:25:20created from those old floor tiles.
0:25:20 > 0:25:25And the drab old carpet has been replaced with new laminate flooring
0:25:25 > 0:25:27which carries on into the back reception.
0:25:27 > 0:25:30As you can see now all the decoration is completed.
0:25:30 > 0:25:32It's all been stripped to the bare bones.
0:25:32 > 0:25:37New floor, concrete floor, damp course, laminate flooring.
0:25:37 > 0:25:40All nice decoration, doors throughout, smoke alarms,
0:25:40 > 0:25:43and you come to in here, a complete kitchen here.
0:25:43 > 0:25:46A good upmarket kitchen, integrated appliances.
0:25:46 > 0:25:51We've gone over the top a little bit with lighting etc underneath,
0:25:51 > 0:25:54but when you're doing a job like this it's no big deal.
0:25:54 > 0:25:55And, yeah, it's looking good.
0:25:55 > 0:25:57Through the kitchen at the back,
0:25:57 > 0:26:01the bathroom has been completely refitted with a white suite,
0:26:01 > 0:26:07tiles and taps and there's a new pitch roof.
0:26:07 > 0:26:11Dan views the latter with great pride.
0:26:11 > 0:26:14Obviously building the rafters and the joists
0:26:14 > 0:26:17and then obviously putting the felt on after
0:26:17 > 0:26:20and across for the tiles to hook on.
0:26:20 > 0:26:23We've finished it off now, it looks a lot neater, a lot tidier
0:26:23 > 0:26:26and within keeping of the other houses,
0:26:26 > 0:26:30but, you know, I'm really proud of that job. It looks really nice.
0:26:30 > 0:26:35But, of course, the first thing that Dan had to tackle was all that woodchip wallpaper.
0:26:35 > 0:26:37Well, nearly all.
0:26:37 > 0:26:40The only place we've got any woodchip is on the stairs,
0:26:40 > 0:26:41but we left that for a reason.
0:26:41 > 0:26:44It was because it's durable if it gets any knocks.
0:26:44 > 0:26:48But, apart from that, everywhere else has been stripped total.
0:26:48 > 0:26:51It sounds like Dan has taken it all in his stride.
0:26:51 > 0:26:54Well, it's just something you have to do, isn't it, really?
0:26:54 > 0:26:58We got an industrial steamer and, you know, going into every room with it
0:26:58 > 0:27:03and it took a couple of days, but, you know, a good scraper and a good steam and its...
0:27:03 > 0:27:05And the whip out.
0:27:05 > 0:27:07The whip!
0:27:08 > 0:27:11Well, I think Kevin's joking!
0:27:11 > 0:27:14But it sounds as though he's been a pretty hard taskmaster.
0:27:14 > 0:27:18It certainly shows in the quality of the end result, though.
0:27:18 > 0:27:21When you're learning a job you make mistakes
0:27:21 > 0:27:25and Dan knows that and he certainly gets told when he does,
0:27:25 > 0:27:28but I can see over the last six months progression
0:27:28 > 0:27:31which is what we're after and what he should be after
0:27:31 > 0:27:35and eventually I won't have to look over my shoulder and check his work, etc.
0:27:35 > 0:27:38It's one of them things, if you get told what's wrong
0:27:38 > 0:27:41you can put it right and you don't do it wrong next time,
0:27:41 > 0:27:42so it's good experience.
0:27:42 > 0:27:44It's like free training, really.
0:27:44 > 0:27:46He should be paying me!
0:27:50 > 0:27:53Hmm...Somehow I don't think Dan will go for that idea,
0:27:53 > 0:27:57but the experience he's gained here will certainly come in handy.
0:27:57 > 0:28:02It's been a real family project because younger son Matt has also had a hand in the plumbing.
0:28:02 > 0:28:04He's been here two and three days a week.
0:28:04 > 0:28:07He's done a bit of plumbing, but he's also got his hands dirty
0:28:07 > 0:28:10and doing a bit of labouring work and helping in and mucking in
0:28:10 > 0:28:11which is what we all do, you know?
0:28:11 > 0:28:14- It isn't just doing your trade, is it?- Yeah.
0:28:14 > 0:28:17It's doing the lot, really, when you're doing this project.
0:28:17 > 0:28:22Although Kevin originally budgeted 8,000 to 10,000 to do all the work,
0:28:22 > 0:28:26the final figure, including his other fees, is just over 13,000.
0:28:26 > 0:28:28That takes the total spend,
0:28:28 > 0:28:32including the £54,500 purchase price, up to around 68,000.
0:28:32 > 0:28:36So, what will it be worth?
0:28:41 > 0:28:43I've invited two local estate agents
0:28:43 > 0:28:46to take a look at this refurbishment project
0:28:46 > 0:28:49and it seems as though Kevin and Dan's hard work
0:28:49 > 0:28:50is being well received.
0:28:50 > 0:28:53Wow! It was a really, really smashing job
0:28:53 > 0:28:57in a relatively short space of time. I'm most impressed.
0:28:57 > 0:29:00I think they've done a fantastic job on this property.
0:29:00 > 0:29:02They've specced it up to a really high spec.
0:29:02 > 0:29:03Good finish throughout.
0:29:03 > 0:29:07I think they've put a lot of time and attention on this property.
0:29:07 > 0:29:09For example, in the kitchen they've put the detail in,
0:29:09 > 0:29:12they've put in under lighters underneath the wall units,
0:29:12 > 0:29:17they've put pelmet lighting, integrated pelmet lighting which is quite a nice feature.
0:29:17 > 0:29:21And the appliances look as if they're a little more than the basic ones,
0:29:21 > 0:29:26so it's nice to see that somebody's taken the time to think it through and put a bit more detail in it.
0:29:26 > 0:29:29But have they spent too much?
0:29:29 > 0:29:35Remember, Kevin's total costs were around £68,000.
0:29:35 > 0:29:40In today's current market I would value this property at £69,500.
0:29:40 > 0:29:44In the market that we're in we're really topping out at 69,950,
0:29:44 > 0:29:48but I have to say I would be really tempted to push this a little further
0:29:48 > 0:29:53because of some of the detail that's been added that I don't normally see.
0:29:53 > 0:29:59I would be suggesting an asking price on this property of somewhere in the region of 72,000.
0:29:59 > 0:30:05So, this father and son team could only make a pre-tax profit
0:30:05 > 0:30:08of between £1,500 and £4,000.
0:30:08 > 0:30:13It's a little bit lower than I thought, but the market does reflect it at the moment.
0:30:13 > 0:30:16I mean, they were selling in the mid 80s in this street a couple of year ago.
0:30:16 > 0:30:22Kevin's plan always was to rent this place out, at least in the short term.
0:30:22 > 0:30:24For the condition of this property,
0:30:24 > 0:30:27I believe you would charge a premium at 410 per calendar month.
0:30:27 > 0:30:31Generally speaking, £425 per calendar month
0:30:31 > 0:30:34should be achievable easily on this property.
0:30:35 > 0:30:42Those figures would give Kevin a return of around 7.5% on his £68,000 investment.
0:30:42 > 0:30:48Not bad, but there's even better news because they've already got a tenant lined up.
0:30:48 > 0:30:51We got people knocking on the door asking what we were doing with it
0:30:51 > 0:30:55and before I knew it we got people who were really interested,
0:30:55 > 0:30:58and in the end we've secured a nice mature couple
0:30:58 > 0:31:00who I think will blend in well with the neighbours,
0:31:00 > 0:31:02which is a big thing for me as well,
0:31:02 > 0:31:06and the rent will be more than what we've basically just been told
0:31:06 > 0:31:08so it all sounds good in that respect.
0:31:08 > 0:31:10I'm quite happy with the end result.
0:31:14 > 0:31:17With this development out of the way,
0:31:17 > 0:31:20Kevin has already turned his attention to two more,
0:31:20 > 0:31:25so it's just as well that he'll have Dan and soon Matt to help out.
0:31:32 > 0:31:35This is Roundhay, an affluent suburb of Leeds,
0:31:35 > 0:31:39and the name Roundhay comes from originally round hog
0:31:39 > 0:31:44which basically means round hunting enclosure or deer park,
0:31:44 > 0:31:47but I'm hunting for bargains.
0:31:47 > 0:31:50What a great place to start!
0:31:50 > 0:31:56This area was once hunting land belonging to the de Lacy family of nearby Pontefract Castle.
0:31:56 > 0:32:00Later it became first mining and then farming land.
0:32:00 > 0:32:06Today Roundhay Park is one of the largest city parks in Europe.
0:32:06 > 0:32:10So, not surprising this is a very desirable area
0:32:10 > 0:32:12and the houses round here reflect that.
0:32:12 > 0:32:15They're gorgeous, very individual.
0:32:15 > 0:32:19So when you hear about a three-bedroom semi-detached
0:32:19 > 0:32:21which had a guide price of 130,000 quid,
0:32:21 > 0:32:23oh, yes, it's time to get excited!
0:32:23 > 0:32:30And, you know what? From the outside this place looks pretty good.
0:32:30 > 0:32:36Those bay windows give it great character and there are some lovely details on the other windows, too.
0:32:36 > 0:32:41Yes, the woodwork needs attention and that might not come cheap, but it's still a fantastic property.
0:32:41 > 0:32:45Let's find out if the inside matches up.
0:32:47 > 0:32:50So, what have we got? Well, you know what?
0:32:50 > 0:32:54I'm a great believer in first impressions and I like this place.
0:32:54 > 0:32:56I like the light in this hall area,
0:32:56 > 0:32:59lots of windows and the stained glass is quite cute.
0:32:59 > 0:33:01It's a fairly standard layout.
0:33:01 > 0:33:04We've got stairs up to the bedrooms there and this large hall area,
0:33:04 > 0:33:07though, gives it a really nice sort of non-cramped feel.
0:33:07 > 0:33:12Front room there, fireplace, big bay window which, again, gives a really good feel to it.
0:33:12 > 0:33:13Kitchen, wow! OK.
0:33:13 > 0:33:17Yep, that's going to need a bit of work, but, you know what?
0:33:17 > 0:33:19You could put your own stamp on that and, you know,
0:33:19 > 0:33:23make a huge difference as we know in terms of the value of the house.
0:33:23 > 0:33:26And then this rear sitting room, it's a good sized space.
0:33:26 > 0:33:30Again, an open fire there which is good. But look at this, fantastic!
0:33:30 > 0:33:33Somebody's already got big doors out on to the garden.
0:33:33 > 0:33:37Obviously they need replacing, but all the structural work's been done.
0:33:37 > 0:33:40It's a great house.
0:33:40 > 0:33:42Out at the back there's a good-sized garden, too.
0:33:42 > 0:33:46Plenty of room for kids to play with space left over.
0:33:46 > 0:33:48That gives me an idea.
0:33:50 > 0:33:55I think this house would really benefit from exactly what the next door neighbours have done.
0:33:55 > 0:33:58Stick a conservatory on the back and it would give you that extra space.
0:33:58 > 0:34:02Now, this is a perfect family home, so that could be a kids' play area
0:34:02 > 0:34:04or just somewhere to come out and enjoy the garden.
0:34:04 > 0:34:08It's not going to cost too much and it would really enhance the house.
0:34:08 > 0:34:13While we're about it, you can see that the neighbours have also added
0:34:13 > 0:34:17a dormer loft conversion, presumably to create a fourth bedroom.
0:34:17 > 0:34:22Time to find out what's upstairs, I think.
0:34:22 > 0:34:25You know, the thing that really strikes me about the house
0:34:25 > 0:34:26isn't necessarily the rooms,
0:34:26 > 0:34:29it's the hallway and the landing areas here.
0:34:29 > 0:34:32They're very big, which you could argue is a bit of a waste of space,
0:34:32 > 0:34:35but I think it gives the whole house a lovely open feel.
0:34:35 > 0:34:38It's fantastic. I mean, things like this on the staircase.
0:34:38 > 0:34:41Look at this beautiful stained glass window.
0:34:41 > 0:34:43And you do need to replace all the windows,
0:34:43 > 0:34:47but whatever you can do to keep features like that it's got to be done.
0:34:47 > 0:34:48But what have we got up here?
0:34:48 > 0:34:50Well, three bedrooms, reasonable size.
0:34:50 > 0:34:53One fairly small one, but two good sized doubles.
0:34:53 > 0:34:56And then we've got a bathroom and separate loo.
0:34:56 > 0:34:57Now, there's a big debate,
0:34:57 > 0:35:00do you knock those two together to create one room?
0:35:00 > 0:35:04I say not. This is a family house and, really, if you've got a family,
0:35:04 > 0:35:07it's great to have a separate loo and a separate bathroom.
0:35:09 > 0:35:10Oh, dear.
0:35:10 > 0:35:13Right, now, the whole house, as you can tell,
0:35:13 > 0:35:15is in need of redecoration.
0:35:15 > 0:35:19That is not a problem, but that potentially is.
0:35:19 > 0:35:21Now that, as far as I can tell,
0:35:21 > 0:35:26is a lath and plaster ceiling and it's cracked, as you can see.
0:35:26 > 0:35:28Now, my big concern is whether or not
0:35:28 > 0:35:31that's because there's been some water ingress above it.
0:35:31 > 0:35:34There is only one way to find out.
0:35:34 > 0:35:36This could be messy.
0:35:39 > 0:35:45Yep, well, that needs sorting out, doesn't it?
0:35:46 > 0:35:50Oops! Well, there's definitely some work to do on that ceiling,
0:35:50 > 0:35:51especially now!
0:35:51 > 0:35:54I just hope that the roof above is watertight,
0:35:54 > 0:35:57otherwise it's one more thing to add to the list here.
0:35:57 > 0:36:02What will a local estate agent make of this as an investment project?
0:36:04 > 0:36:06It's a very run-down property
0:36:06 > 0:36:08which is in need of some large modernisation,
0:36:08 > 0:36:11gas central heating, new bathroom suites,
0:36:11 > 0:36:14new fitted kitchens, a rewire and double glazing.
0:36:14 > 0:36:18And probably a new damp course, too, all of which will set you back
0:36:18 > 0:36:21somewhere in the region of £20,000 to £30,000.
0:36:21 > 0:36:24Add that to the £130,000 guide price
0:36:24 > 0:36:28and you're looking at a total investment of at least 150,000,
0:36:28 > 0:36:31but it could be well worth it.
0:36:32 > 0:36:35It would stand in the region of £269,000.
0:36:35 > 0:36:38That could mean around £100,000 profit
0:36:38 > 0:36:41if you picked it up at the guide price.
0:36:41 > 0:36:46With rental values in the region of £750 per calendar month,
0:36:46 > 0:36:50you could also make a decent return on this if you let it out.
0:36:52 > 0:36:54So, there you have it.
0:36:54 > 0:36:57Now, have I taught you enough over the years
0:36:57 > 0:36:58of Homes Under The Hammer
0:36:58 > 0:37:01for you to know this is an absolutely fantastic opportunity?
0:37:01 > 0:37:04Great location, wonderful house.
0:37:04 > 0:37:07Yes, it needs a bit of cosmetic sorting out, kitchen, bathroom,
0:37:07 > 0:37:09yadda, yadda, yadda, not a problem,
0:37:09 > 0:37:11and for a guide price of 130,000 quid
0:37:11 > 0:37:13this was a fantastic opportunity.
0:37:13 > 0:37:15Who spotted it at the auction?
0:37:17 > 0:37:20Lot number 80 is 20 Keddlestone Road in Leeds 8.
0:37:20 > 0:37:23The vacant three bedroom semi-detached house
0:37:23 > 0:37:24in need of renovation.
0:37:24 > 0:37:27£130,000 to start things off?
0:37:27 > 0:37:31120 then, may I say? 120?
0:37:31 > 0:37:34Thank you, sir, 120 opening bid. I'll take yours. 120. 121.
0:37:34 > 0:37:37It's £120,000 then we have.
0:37:37 > 0:37:40121 I'm looking for. 121, thank you, madam. 122, then.
0:37:40 > 0:37:43122. 123. 124.
0:37:43 > 0:37:46124. 125. 126. A brand new bidder.
0:37:46 > 0:37:50Thank you, sir. 126. 127. 127. 128.
0:37:50 > 0:37:53129? 130.
0:37:53 > 0:37:54131. 132.
0:37:54 > 0:37:59133. 134. 135. No? Shakes the head.
0:37:59 > 0:38:03It's 134. Gentleman seated, it could be yours, sir. 135 anywhere else?
0:38:03 > 0:38:07Are we all done then at £134,000? Sorry, madam, didn't see you.
0:38:07 > 0:38:10135, then we have seated.
0:38:10 > 0:38:12136 anywhere else?
0:38:12 > 0:38:14It's 100... 136. And lady is back in.
0:38:14 > 0:38:17136. 137. 138.
0:38:17 > 0:38:20£137,000 then we have.
0:38:20 > 0:38:24138 anywhere else? All done then at 137?
0:38:24 > 0:38:25138, she's back in.
0:38:25 > 0:38:29I thought you might. 138. 139?
0:38:29 > 0:38:32139. And 140, round it up. 140. 140 she's got. 141 then?
0:38:32 > 0:38:36140. No? £140,000 and we have the lady at the back.
0:38:36 > 0:38:39Are we all done then at £140,000?
0:38:39 > 0:38:42I'll sell it to her then at 140.
0:38:42 > 0:38:44For the first time at 140.
0:38:44 > 0:38:47Second time.
0:38:47 > 0:38:50Third and final time. Fair warning. Thank you, madam.
0:38:50 > 0:38:52Well done.
0:38:52 > 0:38:57I'm surprised it took so long for this one to get going, but the new owners must be delighted.
0:38:57 > 0:39:02For a bid of 140,000, just £10,000 over the guide price,
0:39:02 > 0:39:07Lakvia and Santok have picked up a bargain, I reckon.
0:39:07 > 0:39:09Although they're both originally from India,
0:39:09 > 0:39:13Santok has been living in the UK since he was eight years old.
0:39:13 > 0:39:16He moved to Leeds 26 years ago when the couple got married
0:39:16 > 0:39:19and they've been buying property to rent ever since.
0:39:19 > 0:39:22I met up with them at the house to hear about their plans.
0:39:25 > 0:39:27Santok, Lakvia, lovely to meet you both.
0:39:27 > 0:39:32I love this house! Why did you want to buy it, apart from the blindingly obvious that it's fab?
0:39:32 > 0:39:35Well, we just wanted to grow our business.
0:39:35 > 0:39:38We were looking for another investment, so we went to buy,
0:39:38 > 0:39:42really, another house on the auction that day, than we thought,
0:39:42 > 0:39:45"Well, we'll have a look at this one,"
0:39:45 > 0:39:49because one of my architects pointed out to us this could be a good buy.
0:39:49 > 0:39:53Although they didn't see the inside of the property before the auction,
0:39:53 > 0:39:56Santok did check the outside and, crucially,
0:39:56 > 0:39:59the property values in the area.
0:39:59 > 0:40:03They also had their architect's advice to go on, so they were happy
0:40:03 > 0:40:07to bid up to £150,000 on auction day if necessary.
0:40:07 > 0:40:11So, having seen it inside, what do you think?
0:40:11 > 0:40:13Well, we think it's not too bad.
0:40:13 > 0:40:17We've bought a few houses before, they're worse, you know?
0:40:17 > 0:40:21One house, we bought it, there was no bath in the bathroom.
0:40:21 > 0:40:23The bath in the kitchen!
0:40:23 > 0:40:24Yeah!
0:40:25 > 0:40:30When it comes to developing, Santok and Lakvia are old hands.
0:40:30 > 0:40:32They have around 20 properties they rent out,
0:40:32 > 0:40:35including four shops and a number of flats and houses.
0:40:35 > 0:40:39But more recently they've also bought a pub which they now run.
0:40:39 > 0:40:43So, Santok is a landlord in more ways than one!
0:40:43 > 0:40:47And some of his locals even do building work for him.
0:40:51 > 0:40:58I employ different people, joiners, brickies, we've got a few come in the pub they do building work for me.
0:40:58 > 0:41:01- Before they've had a drink, hopefully.- Yeah, yeah!
0:41:01 > 0:41:03Well, they always work before!
0:41:03 > 0:41:06So, tell me exactly what you're going to do with the place.
0:41:06 > 0:41:09Well, we're going to put the central heating,
0:41:09 > 0:41:12brand new central heating in. Kitchen, new, and a bathroom.
0:41:12 > 0:41:16- Bathroom, we may knock the toilet, you know, the toilet is separate. - Yes.- We'll knock it all in one.
0:41:16 > 0:41:19- Really?- Because I don't think there's a bath in there,
0:41:19 > 0:41:22you know, there's just a shower? So it needs a proper bathroom.
0:41:22 > 0:41:26I see Santok's point, but I think with a bit of adjustment,
0:41:26 > 0:41:29it would be possible to get a bath in here
0:41:29 > 0:41:31and still have a separate toilet.
0:41:31 > 0:41:33Then in terms of the rest of the house?
0:41:33 > 0:41:36Then we're going to redecorate the whole lot,
0:41:36 > 0:41:38plaster the ceilings wherever needs it.
0:41:38 > 0:41:41Yes, there might be a bit of a hole in one of the ceilings,
0:41:41 > 0:41:44- I don't know how that happened, but...- Well...- Sorry.
0:41:44 > 0:41:47- It doesn't matter.- I thought I'd better come clean about that.
0:41:47 > 0:41:49We'll send you the bill later!
0:41:49 > 0:41:52Ah, well, moving swiftly on!
0:41:52 > 0:41:56Santok and Lakvia also have plans to add a small extension to increase
0:41:56 > 0:42:00the size of the dining room and possibly a dormer at a later date.
0:42:00 > 0:42:03I'm not sure it's the best option in the current climate,
0:42:03 > 0:42:08but the couple are planning to hold on to this property in the long term,
0:42:08 > 0:42:10so it may add more value by then.
0:42:11 > 0:42:16They've set themselves a £10,000 budget and an eight-week timescale to do all the work here.
0:42:16 > 0:42:22It's not much, but Santok will be doing a lot of it himself if he can take time off from running the pub.
0:42:25 > 0:42:30So, Santok and Lakvia are securing themselves a great house for 140,000 quid.
0:42:30 > 0:42:33See, you've got to get yourself down to the auctions.
0:42:33 > 0:42:36I'm a little bit concerned about what they're going to do
0:42:36 > 0:42:39in terms of knocking the bathroom and toilet together,
0:42:39 > 0:42:42I don't think that's the right thing to do.
0:42:42 > 0:42:44And, I have to say, over the next few months
0:42:44 > 0:42:47I think a bill might be arriving on my doormat for that ceiling repair.
0:42:47 > 0:42:50Find out what happens later in the show.
0:42:53 > 0:42:55Well, months have passed.
0:42:55 > 0:42:57Have our purchasers' plans hatched?
0:42:57 > 0:43:02- Have they built up a nice little nest egg or have they had rotten luck?- Let's go back and find out.
0:43:04 > 0:43:07When friends Neil and Keith decided to embark
0:43:07 > 0:43:10on a property developing partnership together
0:43:10 > 0:43:14they chose a real challenge to get them started.
0:43:14 > 0:43:18This three-bed mid terrace house in Gosport had been empty for so long
0:43:18 > 0:43:23that the roof in the rear extension had completely given way.
0:43:23 > 0:43:27The one over the bay at the front was rapidly following it.
0:43:27 > 0:43:30It was full of clutter and there were signs of a rat problem,
0:43:30 > 0:43:34but Neil and Keith still paid £82,500
0:43:34 > 0:43:38for this unmortgageable property at auction.
0:43:38 > 0:43:44They planned to spend another 20,000 to 25,000 to return it to its former glory.
0:43:44 > 0:43:48They'd set themselves a three month target to do all the work,
0:43:48 > 0:43:50but nearly nine months later
0:43:50 > 0:43:53the house is only just nearing completion.
0:43:53 > 0:43:54So, why the delay?
0:43:54 > 0:43:57The weather wasn't particularly good over the winter.
0:43:57 > 0:43:59We didn't really have a tight timeline.
0:43:59 > 0:44:02Keith was working on sites around the country
0:44:02 > 0:44:05and so what we've done is let time go on a little bit
0:44:05 > 0:44:07and we started as the spring come along
0:44:07 > 0:44:09and the warmer weather come along
0:44:09 > 0:44:12and we've actually now started to enjoy it.
0:44:12 > 0:44:14It's very hard to work in a cold, empty house.
0:44:14 > 0:44:17This place had been empty for so long
0:44:17 > 0:44:21that the gas and electrics were no longer connected.
0:44:21 > 0:44:27The guys had to have the road closed outside in order to get a new gas meter installed.
0:44:27 > 0:44:29Even now they still have a few days to wait
0:44:29 > 0:44:31until a registered plumber can come
0:44:31 > 0:44:33and finish installing the central heating.
0:44:33 > 0:44:37But one of the first things that had to be done was to replace the roof
0:44:37 > 0:44:40at the back and make sure that the place was watertight.
0:44:40 > 0:44:45Well, this is obviously the bathroom ceiling that was originally on the floor.
0:44:45 > 0:44:48We've had a new roof put on, replaced the ceiling,
0:44:48 > 0:44:51we've dry-lined the walls, new bathroom suite
0:44:51 > 0:44:54and we've got a few pipe boxings to do,
0:44:54 > 0:44:58retile it and then some floor coverings and then we'll be done.
0:44:58 > 0:45:03With the new roof and new windows the property is finally watertight again.
0:45:03 > 0:45:07The guys have been able to keep most of the existing brickwork here,
0:45:07 > 0:45:11but the floors were obviously going to be a bigger problem.
0:45:11 > 0:45:13Not only did we just take the floors up,
0:45:13 > 0:45:16we cleared out underneath all the rafters.
0:45:16 > 0:45:19All the beams were replaced and then new floors put down.
0:45:19 > 0:45:24And then we started on the walls upstairs, took out a few of the walls up here, like this one.
0:45:24 > 0:45:27All the ceilings had to be taken down because they were all lathen plaster,
0:45:27 > 0:45:31then worked from the top downwards and as we were going,
0:45:31 > 0:45:34putting all the new electrics in, the new central heating,
0:45:34 > 0:45:38all the wires, all the pipes were all hidden underneath
0:45:38 > 0:45:40the floor joists right the way down.
0:45:40 > 0:45:43And then just worked from top to bottom pretty much.
0:45:43 > 0:45:46They have made some small changes to the layout along the way.
0:45:46 > 0:45:52There's a new toilet upstairs created by using some of the space in the back bedroom.
0:45:52 > 0:45:55With the main bathroom still downstairs,
0:45:55 > 0:45:56that's really going to help
0:45:56 > 0:46:00and still leaves them with three good sized rooms here.
0:46:06 > 0:46:09Don't be fooled by the table and chairs upstairs
0:46:09 > 0:46:12because downstairs they've reinstated the dividing wall
0:46:12 > 0:46:17in the old reception room to create a separate living and dining room.
0:46:17 > 0:46:19They've also had to reinstall the chimneys here.
0:46:19 > 0:46:24A couple of chimneys had been removed on the ground floor which didn't support...
0:46:24 > 0:46:26They didn't remove them on the first floor,
0:46:26 > 0:46:29so we've reinstated the chimneys as opposed to taking them further out,
0:46:29 > 0:46:31give it a little bit of character.
0:46:33 > 0:46:37In the living room the guys have integrated wiring for a TV in that chimney,
0:46:37 > 0:46:41and they've done the same thing in almost every other room, too.
0:46:41 > 0:46:43They intend to rent this place out
0:46:43 > 0:46:47and have gone for a neutral but durable finish
0:46:47 > 0:46:49hoping to maximise the rental return.
0:46:49 > 0:46:52Of course, the kitchen is no exception.
0:46:52 > 0:46:55Well, what we've actually done in the kitchen so far
0:46:55 > 0:46:57is we've actually changed the cooker
0:46:57 > 0:47:00from one side of the kitchen to the other.
0:47:00 > 0:47:04We've had the hob and the oven reinstated with an extraction system.
0:47:04 > 0:47:09We've taken out the washing machine from the kitchen and put a dishwasher in.
0:47:09 > 0:47:13We've now made a utility area behind the kitchen before you go into the bathroom
0:47:13 > 0:47:17for a washing machine and dryer with another extraction system outside,
0:47:17 > 0:47:19and then leading into the bathroom.
0:47:19 > 0:47:25Let's face it, this place couldn't have been much worse when Keith and Neil bought it,
0:47:25 > 0:47:31but the guys have done great things with it which has been a huge relief to the neighbours, too.
0:47:31 > 0:47:35For the last ten years the property was in a terrible state.
0:47:35 > 0:47:39We had damp, we had rats, we had to call the people out from the council
0:47:39 > 0:47:42and to see it evolve into what it is today,
0:47:42 > 0:47:47although I know there's more work to be done, is lovely,
0:47:47 > 0:47:52and I know all the neighbours feel the same. It's so nice to see.
0:47:52 > 0:47:58In spite of the extra effort they've gone to here, the guys have actually stayed pretty much on budget.
0:47:58 > 0:48:02Keith took charge of a lot of the work while Neil project managed
0:48:02 > 0:48:05and helped out, so they've spent just under 25,000 so far.
0:48:05 > 0:48:09They expect to go slightly over by the time they've finished.
0:48:09 > 0:48:13Added to the original £82,500 purchase price
0:48:13 > 0:48:18that takes the total spend up to just under 110,000.
0:48:20 > 0:48:24But what's it now worth and did they go too far?
0:48:32 > 0:48:33Nine months on,
0:48:33 > 0:48:37time to find out if the market has changed significantly in Gosport.
0:48:37 > 0:48:40What will two local estate agents
0:48:40 > 0:48:42make of all Keith and Neil's hard work here?
0:48:42 > 0:48:45The property is obviously a work in progress.
0:48:45 > 0:48:47The standard is to an extremely high standard,
0:48:47 > 0:48:49far exceeding what we usually see
0:48:49 > 0:48:51when we go and see a renovated property.
0:48:51 > 0:48:54Looking round the property and what they've done,
0:48:54 > 0:48:58the improvements they've made: the kitchen, the bathroom, the upstairs toilet,
0:48:58 > 0:49:02I can't think of anything I would have done any differently to what they've done.
0:49:02 > 0:49:04Well, it's the first time I've seen the property
0:49:04 > 0:49:07and first impressions are it's a nice sized home.
0:49:07 > 0:49:10Certainly it's been refurbished to a good standard.
0:49:10 > 0:49:15A big thumbs up for the property, then, but has all that extra effort paid off?
0:49:15 > 0:49:19They have a tenant lined up to pay £750 per calendar month.
0:49:21 > 0:49:25Typically properties in this area are letting for somewhere
0:49:25 > 0:49:28in the region of £700, £725 a calendar month.
0:49:28 > 0:49:30This may fetch a little bit more
0:49:30 > 0:49:33because of the quality and standard of finish,
0:49:33 > 0:49:36plus also it's, essentially, internally a new property.
0:49:36 > 0:49:39Purely for the size and the standard of finish,
0:49:39 > 0:49:43I would be looking between £725 and £750 per calendar month.
0:49:43 > 0:49:46750 is what we've got, so we're happy with that, yes.
0:49:46 > 0:49:51Neil and Keith have two weeks to get this place finished before their new tenants move in.
0:49:51 > 0:49:55If they stay on budget then that 750 per calendar month
0:49:55 > 0:50:00will give them an 8% return for their £110,000 investment.
0:50:00 > 0:50:03But how much could they get if they decided to sell?
0:50:07 > 0:50:11I would put this property on the resale market for £135,000 to £140,000.
0:50:11 > 0:50:16I would put this poverty on the market for an asking price in the region of 139,950.
0:50:16 > 0:50:21Although it's nice to hear that it's worth £135,000 to £140,000,
0:50:21 > 0:50:23we're quite happy to go with the rental.
0:50:26 > 0:50:32That top price of 140,000 would bring in about £30,000 pre tax profit,
0:50:32 > 0:50:37so all round it's a great result for their first joint project
0:50:37 > 0:50:41and definitely something to build on for the future.
0:50:45 > 0:50:50Back to Roundhay in Leeds now to find out how Santok and Lakvia
0:50:50 > 0:50:53have got on with their three-bedroom house.
0:50:53 > 0:50:56When they bought it for just £140,000 at auction
0:50:56 > 0:50:59I think they picked up a real bargain,
0:50:59 > 0:51:02especially when you consider that a similar property
0:51:02 > 0:51:05can go for 250,000 and up in this area.
0:51:05 > 0:51:09But there was a lot to do, including that ceiling in the back bedroom.
0:51:11 > 0:51:15Yep, well, that needs sorting out, doesn't it?
0:51:17 > 0:51:19Well, as a pub and property landlord,
0:51:19 > 0:51:24Santok reckoned he could get hold of all the extra labour he needed
0:51:24 > 0:51:29to transform this place within eight weeks and for around £10,000.
0:51:29 > 0:51:33But nine months on and when you walk up to the front of the house
0:51:33 > 0:51:36it doesn't seem like much has changed here.
0:51:36 > 0:51:42Slip round the back though and that scaffolding is a sure sign this place is undergoing a lot of work.
0:51:42 > 0:51:45It appears that Santok and Lakvia have decided to add
0:51:45 > 0:51:48that single storey extension they were considering.
0:51:48 > 0:51:51This extension has taken us a long time
0:51:51 > 0:51:54and the reason is a roof leak up there.
0:51:54 > 0:51:59Now that's fixed, so there's going to be an open plan
0:51:59 > 0:52:02kitchen and dining and living room here.
0:52:02 > 0:52:07So, the couple have created a space that will become a new kitchen and dining area here,
0:52:07 > 0:52:11leaving the old kitchen to be converted into a utility area,
0:52:11 > 0:52:15but extending the property has also meant extending their schedule
0:52:15 > 0:52:17from eight weeks to eight months.
0:52:20 > 0:52:24Well, the project is taking its time because we have other properties.
0:52:24 > 0:52:26Sometimes a house comes empty,
0:52:26 > 0:52:29we break away to go and fix that to let it out straight away.
0:52:29 > 0:52:33We've built an extension and that's taken the time.
0:52:33 > 0:52:37Prior to that, it took three months just to get the planning permission.
0:52:37 > 0:52:40With major structural changes planned, Santok didn't feel
0:52:40 > 0:52:44it was worth starting on any other parts of the property.
0:52:44 > 0:52:48There were 50 bags of cement here, you know? Tons of sand outside.
0:52:48 > 0:52:52Then we were going to do plastering and plastering flies everywhere,
0:52:52 > 0:52:53so that's one of the reasons
0:52:53 > 0:52:56we didn't start decorating anywhere else.
0:52:56 > 0:52:59But they have finally begun the rest of the work.
0:52:59 > 0:53:03There are preparations for new central heating, electrics and...
0:53:03 > 0:53:06the repair job on the hole in the back bedroom ceiling!
0:53:06 > 0:53:10It's all done, yeah. All fixed, yeah. All fixed.
0:53:10 > 0:53:12We had to paint it five times.
0:53:12 > 0:53:15With 20 properties to rent out and a pub to run,
0:53:15 > 0:53:18it's hard to see how Santok has found time,
0:53:18 > 0:53:22but he has done a lot of the groundwork and woodwork
0:53:22 > 0:53:26on the new extension himself, with Lakvia helping out.
0:53:26 > 0:53:30That has obviously helped keep their costs down.
0:53:32 > 0:53:36So far we've spent about, roughly, £8,000
0:53:36 > 0:53:40and we may need about another £1,500 to do the bathroom,
0:53:40 > 0:53:43so I think it's on... The budget is on line.
0:53:43 > 0:53:49Wow! To put everything right in this place and get a new extension for under £10,000
0:53:49 > 0:53:51sounds like a major achievement.
0:53:51 > 0:53:55I'm worried that it may mean compromising on the finish
0:53:55 > 0:53:57of this property in a good area.
0:53:57 > 0:54:01Having said that, the couple always planned to keep this long term
0:54:01 > 0:54:03as a nest egg for their family.
0:54:03 > 0:54:05They have a tenant lined up
0:54:05 > 0:54:08who's prepared to pay £700 per calendar month,
0:54:08 > 0:54:13so their main priority is to get the place finished as quickly as possible.
0:54:13 > 0:54:17On a total investment, including fees, of around 155,000,
0:54:17 > 0:54:21that rental will give them approximately 5% return,
0:54:21 > 0:54:24but is it enough for this part of Leeds?
0:54:28 > 0:54:30What advice do two local estate agents
0:54:30 > 0:54:33give on the work that's now underway?
0:54:35 > 0:54:38People that buy in Leeds 8 are looking mainly for the schools,
0:54:38 > 0:54:41but also for properties that are in good decorative order
0:54:41 > 0:54:43that they can move straight in to.
0:54:43 > 0:54:45It's not been carried out to a level
0:54:45 > 0:54:47where a family would move in themselves.
0:54:47 > 0:54:50It's been carried out so a tenant would live in it themselves.
0:54:50 > 0:54:52It's not been fully double-glazed,
0:54:52 > 0:54:54the chimney breasts have not been taken out.
0:54:54 > 0:54:58I believe there will be a new bath suite fitted, new fitted kitchen.
0:54:58 > 0:55:01For letting purposes there will be carpets,
0:55:01 > 0:55:03plastered walls and basic rental furniture.
0:55:03 > 0:55:06Now, that might not meet the expectations
0:55:06 > 0:55:09of many tenants in this area,
0:55:09 > 0:55:12but remember Santok and Lakvia have a tenant
0:55:12 > 0:55:15ready to pay £700 per calendar month.
0:55:15 > 0:55:18At the moment there are a lot of accidental landlords
0:55:18 > 0:55:20because of the marketplace,
0:55:20 > 0:55:22so the better decorative order it's in
0:55:22 > 0:55:24the easier it will be for them to rent it out.
0:55:24 > 0:55:27I think they could probably achieve about £800 a month
0:55:27 > 0:55:29if it's in good decorative order.
0:55:29 > 0:55:33The rental figures of this property would be in the region of £750 per month.
0:55:33 > 0:55:37Well, I mean, I knew the rental values would be about 750 to 850,
0:55:37 > 0:55:41but because the tenant we assessed he was good,
0:55:41 > 0:55:44we said to him, "You know, what do you want to pay?"
0:55:46 > 0:55:51So, the renovation is geared to the expectations and budget of the new tenant.
0:55:51 > 0:55:56With all their costs to date the couple have spent around 155,000.
0:55:56 > 0:55:59That could increase before the renovation is over,
0:55:59 > 0:56:01but it might be worth a lot more.
0:56:04 > 0:56:07The resale value of this property would be in the region of 270.
0:56:07 > 0:56:10I would say the ceiling probably is 250,000.
0:56:10 > 0:56:13So, even at the lower estimate of 250,000
0:56:13 > 0:56:17that would still mean a profit of nearly £100,000
0:56:17 > 0:56:20to go into the family business.
0:56:20 > 0:56:26We paid only 140, we spent, what, about 15,000?
0:56:26 > 0:56:30We've made a lot of money on that, you know? I think it's a bargain.
0:56:30 > 0:56:36Me too, Lakvia. It just goes to show what you can find when you go shopping at property auctions.
0:56:39 > 0:56:44Well, we hope we've been of help today, guiding you and maybe inspiring you along the way.
0:56:44 > 0:56:47- See you next time for more Homes Under The Hammer.- Goodbye.- Goodbye.
0:56:53 > 0:56:56Subtitles by Red Bee Media Ltd
0:56:56 > 0:57:00E-mail subtitling@bbc.co.uk