0:00:02 > 0:00:05Hello. The main thing, if you're a property investor, is making money,
0:00:05 > 0:00:07but that can be a challenge in today's market.
0:00:07 > 0:00:11And you can't see a return until you've bought somewhere.
0:00:11 > 0:00:13But one way to buy is under the hammer.
0:00:39 > 0:00:42Let's face it, we all love snooping around other people's houses.
0:00:42 > 0:00:47Oh, yeah! Whether it's a stately home or a humble bungalow there's always something to talk about.
0:00:47 > 0:00:51Yes, let's find out what excited the buyers on today's show.
0:00:52 > 0:00:55Don't be put off by the state of this Derbyshire property.
0:00:55 > 0:00:58The solution could be easier than you think.
0:00:58 > 0:01:01Getting a professional steam clean would make a huge difference.
0:01:02 > 0:01:06Will this former cigar warehouse in London make you gasp for breath?
0:01:06 > 0:01:10You've got your kitchen area here, which has seen better days.
0:01:10 > 0:01:11It could do with an overhaul.
0:01:12 > 0:01:17And in Manchester this unusual flat has brought out the detective in me.
0:01:17 > 0:01:20I mean, I'm looking for something that's not quite right,
0:01:20 > 0:01:22but it's beautifully decorated.
0:01:23 > 0:01:27All these properties went to auction and we'll find out who bought them
0:01:27 > 0:01:31and what they paid for them when they went under the hammer.
0:01:31 > 0:01:32Sold to you, sir.
0:01:36 > 0:01:39Our first property that went under the hammer is in Ilkeston.
0:01:39 > 0:01:41This is DH Lawrence country,
0:01:41 > 0:01:45just on the Derbyshire/Nottinghamshire border.
0:01:45 > 0:01:50Lawrence, who wrote such classics as Women In Love and Lady Chatterley's Lover
0:01:50 > 0:01:53was born and grew up about 10 minutes from here.
0:01:53 > 0:01:58This whole area heavily influenced his work and you can see why.
0:01:59 > 0:02:02Now, wouldn't it be great if the property I'm seeing
0:02:02 > 0:02:05was the sort that the great writer would have lived in.
0:02:05 > 0:02:10You know the kind of thing, thatched cottage on a hillside overlooking a valley.
0:02:10 > 0:02:14Well, sadly not. However, it does sound reasonably attractive.
0:02:14 > 0:02:17Three-bedroomed, semi-detached.
0:02:17 > 0:02:21It has three reception rooms, a conservatory and a large garage-cum-workshop.
0:02:21 > 0:02:25The best bit, the guide price just 79,000 quid.
0:02:29 > 0:02:33Aesthetically the house doesn't inspire reams of romantic prose,
0:02:33 > 0:02:38however the outside space is substantial and it looks structurally OK,
0:02:38 > 0:02:41so for that guide price of 79 grand it's looking good.
0:02:42 > 0:02:47Well, for that amount of money you'd probably expect that it's fairly grubby,
0:02:47 > 0:02:50but you know what? It doesn't seem too bad.
0:02:50 > 0:02:52And I love it in here! This is the lounge.
0:02:52 > 0:02:55Look at the wooden floor! How absolutely gorgeous is that?
0:02:55 > 0:02:58Fireplace, well, a bit dated, but overall it's a nice big room,
0:02:58 > 0:03:01lots of light coming in through the windows.
0:03:01 > 0:03:03I mean, paint it, change the lighting.
0:03:04 > 0:03:06It's a great start.
0:03:06 > 0:03:09That floor is a major plus and the walls don't need a skim.
0:03:09 > 0:03:15In good condition, a conservatory is always a bonus and adds a huge amount of floor space
0:03:15 > 0:03:19which really is a key feature of this family house.
0:03:21 > 0:03:26I really like the space this house has. I mean, look at this kitchen, it's fantastic.
0:03:26 > 0:03:29I mean, the units are a bit tired and dated, but you know what?
0:03:29 > 0:03:35They're all here and if you were to, say, rent this place out, I wouldn't spend tons of money
0:03:35 > 0:03:39taking these out and putting something else in their place, they're perfectly serviceable.
0:03:39 > 0:03:42An old cooker, but, again, quite impressive looking
0:03:42 > 0:03:46and tidied up, getting a professional steam clean, would make a huge difference.
0:03:46 > 0:03:48This is a very spacious property.
0:03:48 > 0:03:52Apart from the conservatory, there's an extension behind the kitchen
0:03:52 > 0:03:55with an extra room which could be a study or a spare bedroom.
0:03:55 > 0:03:59So, what's the top floor got to offer?
0:04:00 > 0:04:03Upstairs it's almost like a different house.
0:04:03 > 0:04:09Three bedrooms, they're not a bad size, then you've got the loo and bathroom here, which is good to see.
0:04:09 > 0:04:13However, it just feels so small in comparison with downstairs.
0:04:13 > 0:04:16Having said that, you know, where do you spend most of your time?
0:04:16 > 0:04:21In the living room areas, so I think this is not a bad sacrifice, and in terms of condition, not bad.
0:04:22 > 0:04:26# But I see your true colours...#
0:04:26 > 0:04:30OK, so the colour scheme up here might not be to your taste,
0:04:30 > 0:04:32but a weekend with a roller would soon fix that,
0:04:32 > 0:04:35and the guide price is even more appealing
0:04:35 > 0:04:39when you find out how spacious the extension at the back is.
0:04:41 > 0:04:44Well, at the back, not only do you have a really useful
0:04:44 > 0:04:50yard area, there's also a garage which has been extended at some point to create this workshop.
0:04:50 > 0:04:53It's fantastic! I mean, I really like the practicality of this house,
0:04:53 > 0:04:58lots of space for putting things in, which is just what you need.
0:04:58 > 0:05:01At a guide price of £79,000,
0:05:01 > 0:05:04I think it's a cracking property.
0:05:04 > 0:05:10What will a local estate agent have to say? Will he share my enthusiasm?
0:05:10 > 0:05:12I think the house is all right.
0:05:12 > 0:05:14It doesn't need too much doing to it,
0:05:14 > 0:05:17perhaps more decoration, a bit of tidying up.
0:05:17 > 0:05:20It shouldn't take much to get it up to a nice standard.
0:05:20 > 0:05:22As it's a house on a development,
0:05:22 > 0:05:27how does it shape up in comparison to other properties in the area?
0:05:27 > 0:05:32This property is quite unusual, in terms of it is quite large for the type of house it is.
0:05:32 > 0:05:34It's quite a big three-bed semi.
0:05:34 > 0:05:39It's position is unique as well and, obviously, it's surrounded by all the terraced houses on the street mainly,
0:05:39 > 0:05:43so you get a lot of house for your money and it is a really good size.
0:05:43 > 0:05:46And the workshop garage, it is a bonus.
0:05:46 > 0:05:50Not many houses have it around here even in other areas that are local,
0:05:50 > 0:05:54so it is a good selling point and, hopefully, it will...
0:05:54 > 0:05:56It will help the property.
0:05:57 > 0:06:04It seems that a typical rental valuation in this area is around £450 per calendar month.
0:06:04 > 0:06:08What would the resale value of the house be once renovated?
0:06:08 > 0:06:15The resale value, in the current market you'd probably look around £105,000 to £110,000
0:06:15 > 0:06:16once it's all done up.
0:06:16 > 0:06:20Ah, well, maybe this corner plot will end up cornering the market.
0:06:21 > 0:06:23So, a lot of house for your money.
0:06:23 > 0:06:28Interesting configuration, much more space downstairs than there is up,
0:06:28 > 0:06:31but for the right person that garage-cum-workshop could be absolutely ideal.
0:06:31 > 0:06:34Let's see who fancied it when it went to the auction.
0:06:34 > 0:06:38Lot 13. A good-sized three-bedroom modern semi-detached house.
0:06:38 > 0:06:42This is a 14-day completion, ladies and gentlemen.
0:06:42 > 0:06:45Start me where you will. £80,000? 80?
0:06:45 > 0:06:4678?
0:06:46 > 0:06:4978? 75 may I say?
0:06:49 > 0:06:5475? 75 is bid in the middle. 75. 76.
0:06:54 > 0:06:5577.
0:06:55 > 0:06:5878. 79.
0:06:58 > 0:06:5980,000?
0:06:59 > 0:07:02At £79,000 in the centre. 80,000?
0:07:02 > 0:07:07At £79,000. It's in the market, ladies and gentlemen, at £79,000.
0:07:07 > 0:07:10I'll take 500 if it will help you elsewhere.
0:07:10 > 0:07:14At 79,000 then going once, twice, third and last opportunity.
0:07:14 > 0:07:18Sold to you, sir, at 79,000. Thank you.
0:07:19 > 0:07:23And that winning bid of £79,000, bang on the guide price,
0:07:23 > 0:07:25was made by Nick.
0:07:25 > 0:07:29He comes from Sheffield, but his girlfriend lives around the corner.
0:07:29 > 0:07:32We caught up with Nick and his dog, Scruffy, back at the house.
0:07:32 > 0:07:36Scruffy's already given the property his seal of approval.
0:07:36 > 0:07:39- Nick, good to meet you. Congratulations.- Thank you.
0:07:39 > 0:07:41- That was quick, wasn't it?- It was, but I'm glad.
0:07:41 > 0:07:44I'd sorted my reserve out and knew what I could go to, so...
0:07:44 > 0:07:49- And it went bang on the guide price. - Bang on the guide price, yeah.- What was it that made you want to buy?
0:07:49 > 0:07:55Well, the layout is three-bed, my girlfriend's got two-bed, but also we've got a dog that's...
0:07:55 > 0:08:02Well, it's got an allergy to grass, so it's got a courtyard so it's quite convenient for a run around.
0:08:02 > 0:08:06- Tell me more about the dog.- It's a rescue dog we got from just up the way,
0:08:06 > 0:08:09had been in a bad way, cost a fortune in vets' bills, on the mend now,
0:08:09 > 0:08:12so we thought we would give it a better quality of life, you know?
0:08:12 > 0:08:18- Oh, well done you.- Yeah.- But it's allergic to grass?- Well, it's actually saliva of fleas on grass.
0:08:18 > 0:08:21- So, very technical!- What happens if it goes on grass?
0:08:21 > 0:08:24It bites its hair off, rips it back to bits, yeah. Quite graphic!
0:08:26 > 0:08:31So, the paved area outside could be ideal for Scruffy, and there's plenty of accommodation.
0:08:31 > 0:08:34He could even have his own room.
0:08:34 > 0:08:37Who says it's a dog's life? But does Nick plan to live here?
0:08:39 > 0:08:45Initially, to move into, my girlfriend is going to sell hers. That's going on the market.
0:08:45 > 0:08:50If that sells we'll move in, if not, you know, sell it on and see what we can do.
0:08:50 > 0:08:54- So, have you done this kind of thing before?- I've done it on the girlfriend's house.
0:08:54 > 0:09:00We refurbed that when she moved in, that was a bit of a wreck, so we started at the bottom, worked up.
0:09:00 > 0:09:03I don't think there's too much that actually needs doing on this.
0:09:03 > 0:09:06- What about buying and selling properties...- No, no. I do it as a job...
0:09:06 > 0:09:10- I'm a solicitor, a trained property solicitor.- Oh, great.
0:09:10 > 0:09:15Yeah, yeah. So, do it for a living, seeing how much money people make, thought I'd get a bit of the pie.
0:09:15 > 0:09:22Nick had initially offered £80,000 before the auction, but that was turned down.
0:09:22 > 0:09:27On auction day he saved himself 1,000 quid as he only paid the guide price of 79,000.
0:09:30 > 0:09:34He's no stranger to property auctions and thinks he got a great deal.
0:09:34 > 0:09:36- So you see the other side of it? - Yeah, yeah.
0:09:36 > 0:09:40I'm always telling people to read the legal packs, check with their solicitors.
0:09:40 > 0:09:44- You must see it all the time, people NOT doing it.- Oh, yeah, yeah.
0:09:44 > 0:09:46You know, there's quite often people will buy a property,
0:09:46 > 0:09:50come in and say I've bought this, and you bang your head against the wall and say,
0:09:50 > 0:09:54well, for £100 if we'd had looked at it before you would have saved yourself a lot of money, but...
0:09:54 > 0:10:00What's the biggest sort of mistake you've seen which could have been rectified by you looking at it?
0:10:00 > 0:10:05Part-done conversions that people have bought that haven't got planning permission.
0:10:05 > 0:10:10You know, they've sold it quite clever without the bathroom fitted, without the kitchen fitted,
0:10:10 > 0:10:13but it turns out that it's still a commercial building,
0:10:13 > 0:10:16so you've got to get permission, so it's not the bargain they thought they were getting.
0:10:16 > 0:10:21- Why do you think people don't? What is it, because I never fathom it?- I think people are... People are...
0:10:21 > 0:10:23It's like not having a survey before an auction.
0:10:23 > 0:10:27It's if they don't get it they see it as money chucked away,
0:10:27 > 0:10:31but they do get it, again it could be...could be the best £100, £150 or whatever they've spent.
0:10:31 > 0:10:37So, he paid £79,000 for his first investment property,
0:10:37 > 0:10:40after reading the legal pack - of course!
0:10:40 > 0:10:42What does he think of that workshop?
0:10:42 > 0:10:44It's brilliant, because I like tinkering with cars,
0:10:44 > 0:10:48giving me a bit of a haven from the girlfriend if we do move in, so yeah, great!
0:10:48 > 0:10:52- That will be your bit, will it? - Yeah, lockable door, brilliant!
0:10:52 > 0:10:56- And the dog can live in the courtyard.- The dog in the courtyard, yeah.
0:10:56 > 0:10:58So, it's actually got quite a lot of what you need.
0:10:58 > 0:11:03Oh, exactly. If... If we moved in it would be cracking, if we don't, you know, we should make...
0:11:03 > 0:11:06make a bit of money on it, so, you know, win either way, hopefully.
0:11:06 > 0:11:10- So, specifically then, what are you going to do with this place?- Just really a refurb. There's a few
0:11:10 > 0:11:16broken windows, a lot of painting, filling, cooker and fridge freezer needs fitting, that sort of thing.
0:11:16 > 0:11:21You know, general tidy up, garden, a bit of building work outside.
0:11:21 > 0:11:25Maybe put a new banister in on the stairs, new balustrades, that sort of thing.
0:11:25 > 0:11:28Really, just bring it up to date and give it a new lease of life
0:11:28 > 0:11:32because the fittings that are in seem to be quite good quality.
0:11:32 > 0:11:34- So, what is the budget?- We're looking at 6,000, all being well.
0:11:34 > 0:11:38OK. But you're not going to be replacing kitchen cabinets and...
0:11:38 > 0:11:41Not unless we...turn anything up nasty.
0:11:41 > 0:11:45No, it seems quite solid and good... good quality. So, yeah, we'll see what we can do with what's here.
0:11:45 > 0:11:47- So, that's mostly just tarting up. - Yeah, yeah.
0:11:47 > 0:11:52Well, Nick looks to have picked up a bargain, but not everyone has been a winner here.
0:11:52 > 0:11:55Unfortunately, the house was a repossession.
0:11:55 > 0:12:00The services have not been tested, so Nick is going to need to get those checked out.
0:12:00 > 0:12:05As long as there are no serious problems, Nick will do all the work in his spare time.
0:12:05 > 0:12:07He estimates it'll take six weeks.
0:12:07 > 0:12:11Meanwhile, he'll stay at his girlfriend's just around the corner.
0:12:11 > 0:12:15- Well, good luck. I hope you and the little dog are just great. - Cheers, thanks for that.
0:12:15 > 0:12:17And good luck.
0:12:17 > 0:12:19# If you don't know how to do it
0:12:19 > 0:12:23# I can show you how to walk the dog... #
0:12:23 > 0:12:26Well, not only has Nick got a place that suits him down to the ground
0:12:26 > 0:12:28with a workshop that he can escape to,
0:12:28 > 0:12:34but it's also brilliant for little Scruffy the dog with this courtyard and even his own dog kennel.
0:12:34 > 0:12:37The big question is, in today's current market
0:12:37 > 0:12:43is Nick's strategy of buying to sell on really going to work, or will he find himself in the doghouse?
0:12:43 > 0:12:45You can find out later in the show.
0:12:50 > 0:12:56Catch a train east from Central London and the choice of properties and food is amazing!
0:12:56 > 0:13:02I'm just round the corner from today's property in the City of London at Spitalfields Market
0:13:02 > 0:13:05where haggling and getting a deal are just taken for granted.
0:13:05 > 0:13:11Now, the question is will the property's £230,000 to £250,000 guide price
0:13:11 > 0:13:15exclude everyone but your seasoned property developer,
0:13:15 > 0:13:22or will an auction first-timer be able to keep that price down and bag a bargain of a lifetime?
0:13:22 > 0:13:25Just a short walk from Liverpool Street Station,
0:13:25 > 0:13:29this area is right in the heart of London's financial sector.
0:13:29 > 0:13:32There are plenty of bars, clubs and restaurants to choose from
0:13:32 > 0:13:35and it's the perfect location for anyone working in the City,
0:13:35 > 0:13:40but, even in a credit crunch, that guide price doesn't get you much around here,
0:13:40 > 0:13:43even when it's over a pub, like this flat.
0:13:45 > 0:13:50So, here it is, a one-bedroom flat situated in this great-looking building,
0:13:50 > 0:13:55and, yes, I know what you're thinking, it's above a pub, what could be worse?
0:13:55 > 0:13:58Well, yes, there might be issues with finance,
0:13:58 > 0:13:59but there will be lenders
0:13:59 > 0:14:03and this is not the first flat above a pub in London, now, is it?
0:14:03 > 0:14:08No, for me it's all about location and investment potential.
0:14:09 > 0:14:14It certainly ticks the right boxes for its location, but has it got potential?
0:14:14 > 0:14:18Well, the communal areas are a good start, nothing too grand, but light,
0:14:18 > 0:14:25clean and well managed, a sure sign the £700 annual service charge is being used wisely.
0:14:30 > 0:14:33So, let's have a really good look around the property.
0:14:33 > 0:14:35Now, to the left here we've got storage space.
0:14:35 > 0:14:40I always love that, it's somewhere to bung all your coats, you can put your vacuum cleaner.
0:14:40 > 0:14:44Video entryphone system, that always makes me feel really secure.
0:14:44 > 0:14:49Don't forget, you are in the centre of London and something like this will come in really handy.
0:14:49 > 0:14:52Now, you've got the bathroom to the left, a little bit tatty.
0:14:52 > 0:14:55I could say that would do with a bit of updating,
0:14:55 > 0:14:58a bit of a freshen up in there, some new tiles and paint, maybe.
0:14:58 > 0:15:01And in here another cupboard.
0:15:01 > 0:15:05Now, that is a really good use of space!
0:15:05 > 0:15:08The washing machine is in there. That is an ideal place to put it.
0:15:08 > 0:15:12You've got the bedroom to the left. I'm glad to say it's not on the small side.
0:15:12 > 0:15:14You've got a big double bed in there,
0:15:14 > 0:15:17it faces out on to the road, it's quite a comfortable little space.
0:15:17 > 0:15:22It's weird because this flat does have a rather unusual layout, but it does work for me.
0:15:23 > 0:15:27So far so good, then. What about the kitchen and living areas?
0:15:29 > 0:15:33So, here we go. We've saved the best room to last.
0:15:33 > 0:15:36Isn't this magnificent? What would you call this?
0:15:36 > 0:15:42A huge sitting room-cum-dining area-cum-kitchen.
0:15:42 > 0:15:47I mean, it is magnificent and what I love about this property are these amazing windows.
0:15:47 > 0:15:53There's one, two, three, four, five, six, seven, eight, nine huge windows in here.
0:15:53 > 0:15:57Now, I do know this old building was originally a grain store,
0:15:57 > 0:16:01then an old cigar factory and it was only converted into these flats
0:16:01 > 0:16:0415 years ago, but you can see they've done a pretty good job.
0:16:04 > 0:16:09You've got your kitchen area here, which I think has seen better days,
0:16:09 > 0:16:10it could do with an overhaul,
0:16:10 > 0:16:14but it's a great space and a really good flat for the money.
0:16:14 > 0:16:17Don't just take my word for it,
0:16:17 > 0:16:22what can a local estate agent tell me about this property and how it compares to others in the area?
0:16:24 > 0:16:26It's fairly well proportioned,
0:16:26 > 0:16:28it's got high ceilings, it's got big windows
0:16:28 > 0:16:33and it's got the feel of a warehouse conversion that people like.
0:16:33 > 0:16:37The exterior of the building is fairly typical late Victorian, early Edwardian.
0:16:37 > 0:16:42A lot was lost in the war and quite a few were knocked down in the '60s and a lot are being converted.
0:16:42 > 0:16:43They're extremely popular.
0:16:43 > 0:16:48There should be strong demand for this place, even though there's a bar downstairs.
0:16:48 > 0:16:55That bars here tend to be fairly busy immediately after working hours and not busy at all during the weekend,
0:16:55 > 0:17:01so I think it's not a bad place in Central London to have a property over a commercial unit like that.
0:17:02 > 0:17:06What sort of market would an investor be aiming at?
0:17:06 > 0:17:10This property would be a good starter pad for maybe a young City professional
0:17:10 > 0:17:15looking to add some value onto the property and then move on as the property gained in value
0:17:15 > 0:17:18and as they moved up their career path.
0:17:18 > 0:17:24I would imagine that somewhere in the region of £5,000 could update this property
0:17:24 > 0:17:26and add good value to it.
0:17:28 > 0:17:34So, if a buyer got this place around the £230,000 to £250,000 guide price
0:17:34 > 0:17:39then they could be looking at a total spend of up to around £260,000
0:17:39 > 0:17:42once Stamp Duty and other fees have been included.
0:17:45 > 0:17:51Remember that anything over 250,000 and that Stamp Duty rises from 1% to 3%,
0:17:51 > 0:17:54but it sounds as though there could still be room to make a profit.
0:17:56 > 0:18:03Once the property's been updated I would expect it to fetch somewhere in the region of £275,000.
0:18:03 > 0:18:09With an expected rental income of around £1,400 per calendar month
0:18:09 > 0:18:11this place could be a good earner.
0:18:13 > 0:18:15This is a good-sized property in a great area.
0:18:15 > 0:18:20Get it for somewhere around the top of that £250,000 guide price
0:18:20 > 0:18:23and you'll be making a serious investment.
0:18:23 > 0:18:26Who was victorious? Let's go to auction.
0:18:28 > 0:18:30Let's move along to Lot 228,
0:18:30 > 0:18:33the Wexham Building in London E1.
0:18:33 > 0:18:37Who'll bid me 200,000? 200 may I say? Straightaway, thank you, 200.
0:18:37 > 0:18:39205?
0:18:39 > 0:18:42200 I have. 205. 210.
0:18:42 > 0:18:46215. 220. 225.
0:18:46 > 0:18:48230.
0:18:48 > 0:18:49230, sir.
0:18:49 > 0:18:51OK, 235. 240.
0:18:51 > 0:18:53245. 250.
0:18:53 > 0:18:55255?
0:18:55 > 0:18:59No. Gentlemen in the tie and the white shirt for 250 on the left.
0:18:59 > 0:19:01255 anywhere else?
0:19:02 > 0:19:05Right at the back, standing up 255. 260, sir?
0:19:06 > 0:19:13Are you sure? One bid then, gentleman standing at the back at 255,000. 260 anywhere else?
0:19:13 > 0:19:15For the first time at 255.
0:19:15 > 0:19:18The second time at 255.
0:19:19 > 0:19:24For the third and final time at £255,000, the gentleman at the back.
0:19:24 > 0:19:25Sold to you, sir.
0:19:26 > 0:19:31At £255,000, just over that Stamp Duty threshold,
0:19:31 > 0:19:36the successful bid came from former estate agent Karsten.
0:19:36 > 0:19:40He knows this area and, in fact, this flat quite well.
0:19:40 > 0:19:45- Karsten, congratulations.- Thank you. - I love this building, it's great, isn't it?
0:19:45 > 0:19:49It's not too bad and it's a building I actually came to about 10 years ago
0:19:49 > 0:19:53and I first saw it when I was an estate agent just round the corner from here.
0:19:53 > 0:19:56Obviously, being on the other side of the fence and saying,
0:19:56 > 0:19:59Hello, sir, madam, I think your two bedroom flat is worth X,
0:19:59 > 0:20:03and then winding the clock onwards 10 years or so and walking in here thinking,
0:20:03 > 0:20:07well, somewhere to buy is fantastic, and there's...there's lots to do.
0:20:07 > 0:20:11So, you bought in an area, Karsten, that you are really familiar with, which is fantastic.
0:20:11 > 0:20:16It's really nice, therefore, to be coming back and seeing it through with a fresh set of eyes.
0:20:16 > 0:20:19So, were you buying properties while you were an estate agent
0:20:19 > 0:20:21or is it something you decided to move on to?
0:20:21 > 0:20:26It's...it's the latter that I wanted to move on to and you always harbour this sort of desire to do it.
0:20:26 > 0:20:28Actually having the courage, the convictions,
0:20:28 > 0:20:32the foolhardiness, whatever, to get on and do it is really exciting
0:20:32 > 0:20:35and that's been for the last year and a half or so now.
0:20:35 > 0:20:38Karsten reckons that with the property market suffering
0:20:38 > 0:20:45he's picked this flat up at a bargain price, but buying at auction is not something he's used to.
0:20:45 > 0:20:49It's the first time I've bought something at a property auction.
0:20:49 > 0:20:54Many years ago, when living in New Zealand, my wife and I bought a car at auction.
0:20:54 > 0:20:57That was infinitely worse, infinitely more nerve-wracking,
0:20:57 > 0:21:02- so this has been reasonably easy sailing so far.- But you spent so much more money than on a car!
0:21:02 > 0:21:06But it's a lot easier to do the research when you know what you're looking for
0:21:06 > 0:21:09and it will be great to get my teeth into the refurbishment.
0:21:10 > 0:21:14Karsten would prefer to sell this flat on if possible.
0:21:14 > 0:21:17His strong knowledge of the local property market
0:21:17 > 0:21:21gives him a good idea of how best to refurbish it to maximise his return.
0:21:22 > 0:21:25One of the lovely things about the whole building
0:21:25 > 0:21:27is the ceiling heights are not only quite unusual,
0:21:27 > 0:21:32but actually as well as having all the windows here, a really good feeling of space,
0:21:32 > 0:21:34even starting with the flat naked.
0:21:34 > 0:21:38The kitchen is going to remain in the same position as the current kitchen
0:21:38 > 0:21:43and we're not moving any walls around internally because I think the layout is pretty good
0:21:43 > 0:21:48as it is - I'm just going to bring out as much freshness as possible.
0:21:48 > 0:21:53So, there's quite a lot of brickwork that's been covered in swathes of paint over the years
0:21:53 > 0:21:59and next week one of the fun tasks will be really going at it with a sand blaster.
0:21:59 > 0:22:03I say this with a degree of confidence now. That might be an interesting few hours!
0:22:03 > 0:22:06- Masks ahoy!- Masks ahoy and stand back, neighbours!
0:22:06 > 0:22:11We'll take everything back pretty much to the brickwork and may or may not then whitewash it,
0:22:11 > 0:22:15but make it feel more industrial and a bit more interesting.
0:22:15 > 0:22:20I'd like to see exposed brickwork. That would look fantastic, wouldn't it, with lovely dark wood floors?
0:22:20 > 0:22:22Well, that's...that's the intention.
0:22:22 > 0:22:26I fear there's going to be an awful lot to come off the walls before we get back to that exposed brick,
0:22:26 > 0:22:27but it's going to be fun.
0:22:27 > 0:22:31I'm not sure that "fun" is the word I'd use!
0:22:31 > 0:22:34It's going to be very messy, that's for sure.
0:22:34 > 0:22:39But Karsten's hoping to get over £300,000 for this place when he sells it on.
0:22:39 > 0:22:43To do that he's really going to have to make it stand out from the crowd.
0:22:45 > 0:22:49There is a good amount of competition by way of other flats, some that are larger, some that are smaller,
0:22:49 > 0:22:51and all of which are round about the same price,
0:22:51 > 0:22:54so the proof will be in the pudding of doing the work properly.
0:22:54 > 0:22:58That is my worry for you. There are an awful lot of flats at the same stage.
0:22:58 > 0:23:03You only need to walk outside and there's lots of refurbishments going on.
0:23:03 > 0:23:08You've really got to set your flat apart from the rest and try and keep the costs down.
0:23:08 > 0:23:12Absolutely, and still retain the character of the warehouse building that I think is to its advantage
0:23:12 > 0:23:18compared to quite a lot of flats that have been erected from scratch in the last four or five years
0:23:18 > 0:23:21that are very functional, are equally convenient, but probably have less character.
0:23:21 > 0:23:25And that genuinely is the advantage of this flat and the others in the building.
0:23:26 > 0:23:31Karsten has given himself a reasonable budget of £12,000
0:23:31 > 0:23:35to get the flat turned around in just six weeks.
0:23:35 > 0:23:38He'll have professional builders doing a lot of the work,
0:23:38 > 0:23:41but plans to get stuck into some of the manual work himself.
0:23:42 > 0:23:44It's quite a change from estate agency.
0:23:44 > 0:23:46Would he ever think of going back?
0:23:49 > 0:23:53We have to see how this project goes! We shall see. I'm actually really enjoying being...
0:23:53 > 0:23:56working for myself and doing project by project.
0:23:56 > 0:24:00I really, really enjoyed my time in estate agency.
0:24:00 > 0:24:04It's great to be taking some of the skills and facets from that and using them
0:24:04 > 0:24:09- now on the other side of the fence. - Karsten, good luck. It's been lovely meeting you.- Thank you.
0:24:09 > 0:24:13- And I hope this project goes well. - We'll be starting tomorrow morning. - Well done.- Thank you.
0:24:20 > 0:24:23The boot really is on the other foot now for Karsten.
0:24:23 > 0:24:26Luckily, he knows the market and he feels confident.
0:24:26 > 0:24:32My only concern is that tight turnaround to sell straightaway may not be realistic,
0:24:32 > 0:24:37and he's sandblasting for the first time! Good luck!
0:24:37 > 0:24:40Join us later to see what happens when we return.
0:24:41 > 0:24:46Coming up, could there be a catch with this imposing mansion development?
0:24:46 > 0:24:48Through into the kitchen,
0:24:48 > 0:24:50I mean, this is looking fantastic.
0:24:51 > 0:24:55We return to this London flat above a bar.
0:24:55 > 0:24:58They wanted to test the sound system.
0:24:58 > 0:25:01They put it up at such an incredibly loud volume.
0:25:02 > 0:25:05But first, will Scruffy's dog bowl now have water in it?
0:25:05 > 0:25:08Once we turned all the utilities back on
0:25:08 > 0:25:11there were a few heart-stopping moments as it refilled.
0:25:14 > 0:25:19When property solicitor Nick saw just how much money some of his clients were making
0:25:19 > 0:25:22he decided to try developing himself.
0:25:22 > 0:25:29He bought this three-bedroom semi-detached house in Ilkeston near Derby for £79,000.
0:25:29 > 0:25:32He spotted it while out walking his dog, Scruffy.
0:25:43 > 0:25:49Nick had taken Scruffy from a rescue centre and, just like the property, Scruffy wasn't feeling 100%.
0:25:49 > 0:25:52So on our return to Ilkeston three months later
0:25:52 > 0:25:56there was one important question to ask before we got around to the property.
0:25:58 > 0:26:01Scruffy seems to have...come along with the house, really.
0:26:01 > 0:26:05You know, as the house has picked up, so has she. She's the picture of health now, thankfully.
0:26:05 > 0:26:09So, Scruffy's back to her best and, so it appears, is the house.
0:26:10 > 0:26:14# But we are OK, we are all right
0:26:15 > 0:26:20# We sing very loud, yeah we're singing
0:26:20 > 0:26:24# We are OK, we are all right... #
0:26:24 > 0:26:28It's not a massive transformation, but Nick has done a great job.
0:26:28 > 0:26:32This property was more about fixing and tidying up
0:26:32 > 0:26:35than ripping up and starting again.
0:26:35 > 0:26:40In the kitchen we gave it a really good deep clean, refitted all the various wooden doors,
0:26:40 > 0:26:44new light fittings, new fridge freezer,
0:26:44 > 0:26:46regrouted some of the floor,
0:26:46 > 0:26:50new built-in hob and oven, dishwasher as well.
0:26:50 > 0:26:53Just generally tidied it up.
0:26:53 > 0:26:58However, this wasn't the only kitchen that Nick had to renovate here.
0:26:58 > 0:27:02The garage seemed to have the old kitchen fitted in there,
0:27:02 > 0:27:04so we've ripped all that out,
0:27:04 > 0:27:07got rid of all the unnecessary units,
0:27:07 > 0:27:08also fitted a new garage door,
0:27:08 > 0:27:11a new locking system and everything like that,
0:27:11 > 0:27:13made it a bit more secure and, yeah,
0:27:13 > 0:27:15it's just a good serviceable garage now.
0:27:15 > 0:27:22The front and back areas have also been tidied up and there's a new path which connects the two.
0:27:22 > 0:27:26Back inside, the renovation continues upstairs.
0:27:27 > 0:27:31The biggest difference we've done upstairs is to put this new banister in
0:27:31 > 0:27:32which makes it bright and airy.
0:27:32 > 0:27:39New carpets, new paint job, replaced some of the skirting, window boards, floorboards.
0:27:39 > 0:27:44A lot of little changes like new light fittings, but overall made a big difference, I think.
0:27:45 > 0:27:50It's a good example of how small changes can have a big impact.
0:27:50 > 0:27:53Like the kitchen, the bathroom just needed brightening up.
0:27:53 > 0:27:58With new carpets and the lick of paint the bedrooms are also now much more welcoming,
0:27:58 > 0:28:00but who's going to move in?
0:28:00 > 0:28:03Initially the plan was to move into the property
0:28:03 > 0:28:06and sell the current house that we're in or possibly rent it out.
0:28:06 > 0:28:10Unfortunately, due to a change of circumstances, that's not happening,
0:28:10 > 0:28:14so get this on the market, get it sold and then on to the next project.
0:28:15 > 0:28:20As profit is the aim of the venture, Nick has to make sure he's hit his targets.
0:28:20 > 0:28:27He got this property for the guide price of 79,000, but did he manage to stick to his budget of 6,000?
0:28:28 > 0:28:32The actual refurb, all-in, came to approximately 3,500,
0:28:32 > 0:28:36so hopefully we can include the agent's fees in the initial 6,000 budget
0:28:36 > 0:28:39and, you know, come away with quite a bit of profit.
0:28:40 > 0:28:44As a property solicitor who advises clients on their purchases,
0:28:44 > 0:28:48has Nick practiced what he preaches and made a profit here?
0:28:48 > 0:28:52Anything over around 85,000 would be money in his pocket,
0:28:52 > 0:28:55so let's bring in two local estate agents to hear their views.
0:29:07 > 0:29:08I think it looks good.
0:29:08 > 0:29:12I know the kitchen and the bathroom fittings were already in.
0:29:12 > 0:29:15Obviously, he's spruced those up and he's decorated it
0:29:15 > 0:29:18and he's carpeted it, generally made it look very appealing.
0:29:18 > 0:29:22He hasn't replaced the kitchen, but it didn't need much doing to it
0:29:22 > 0:29:24so he's cleaned it up and it looks really good.
0:29:24 > 0:29:27There's no doubt that once you're inside the house
0:29:27 > 0:29:33you'd be quite attracted by what is here, so the level or the standard is I think very good, very adequate.
0:29:34 > 0:29:37In fact, I think if you were realistic
0:29:37 > 0:29:40you could say it's probably too good for where it is.
0:29:41 > 0:29:47After those comments, Nick will be pleased he didn't spend money on a new bathroom or new kitchen.
0:29:47 > 0:29:51He spent a total of around 85,000 buying and renovating this house,
0:29:51 > 0:29:55so what could it be worth on today's market?
0:29:55 > 0:29:59If I was going to put the property on the market today I'd be going at about £100,000.
0:29:59 > 0:30:04I would expect the house to achieve around £100,000 or just short of that.
0:30:06 > 0:30:10That price, it leaves...you know, a bit of profit in there
0:30:10 > 0:30:14and see what happens and, you know, hopefully get an offer near the asking price.
0:30:14 > 0:30:18If it doesn't sell straightaway there's always the rental market.
0:30:18 > 0:30:24That would yield around £450 per calendar month, but Nick's not particularly keen on that option.
0:30:25 > 0:30:30Being a landlord doesn't really appeal and renting it out, because through my job as a solicitor
0:30:30 > 0:30:34I see enough landlord and tenant disputes and I don't really want to get involved in those, to be honest.
0:30:35 > 0:30:39Nick wants to take the profit and move on to his next property.
0:30:39 > 0:30:45While he's pleased to see that it's finished, it means more to him to see Scruffy rejuvenated, too.
0:30:45 > 0:30:49The house has been transformed, it's a lot better than it was and so's the dog,
0:30:49 > 0:30:53but the dog being better is more important than the house, so we'll just see what happens.
0:30:54 > 0:30:58Absolutely right! And with a profit on the horizon and Scruffy fully recovered
0:30:58 > 0:31:04they can both look forward to the next project and a new LEASH of life.
0:31:04 > 0:31:06# We are OK, we are all right... #
0:31:12 > 0:31:17Our next property is in Manchester and it had a very intriguing guide price.
0:31:17 > 0:31:21Well, when it was brand spanking new around six years ago,
0:31:21 > 0:31:25the flat I'm here to see sold for just under £200,000.
0:31:25 > 0:31:30Well, it's just been to auction with a guide price of £80,000.
0:31:30 > 0:31:32There must be something wrong.
0:31:33 > 0:31:35Well, not from the outside!
0:31:36 > 0:31:42Complete with its own mock Georgian entrance, this lot makes a good first impression.
0:31:42 > 0:31:47It's in great condition with well stocked flower beds and ample parking.
0:31:47 > 0:31:53It's all rather grand and inside, the communal area is just as well maintained.
0:31:53 > 0:31:55Where's the damp, the cracked walls?
0:31:55 > 0:31:59I'm not used to this sort of standard! So, what's the flat going to be like?
0:31:59 > 0:32:00Wow!
0:32:00 > 0:32:02Nice-looking start.
0:32:02 > 0:32:07Big entrance, which is good to see, nice high ceilings.
0:32:07 > 0:32:11You got a loo and a bathroom there, the first bedroom over there.
0:32:13 > 0:32:17Storage cupboard here. I mean, I'm looking for something that's not quite right,
0:32:17 > 0:32:19but it's beautifully decorated,
0:32:19 > 0:32:23big second bedroom there, through into the kitchen.
0:32:23 > 0:32:26I mean, this is looking fantastic!
0:32:26 > 0:32:29You've got virtually new units, built-in cooker.
0:32:30 > 0:32:33This is a really great flat!
0:32:33 > 0:32:37Yes, quite spectacular, in fact.
0:32:37 > 0:32:41Considering the flat is already seven years old it's in pretty good shape.
0:32:41 > 0:32:43You wouldn't think anyone had lived here.
0:32:43 > 0:32:48It's like a brand new property. It's bright, it's airy and I love the proportions.
0:32:50 > 0:32:52I mean, look at the size of these rooms.
0:32:52 > 0:32:56This is the lounge, huge and very stylishly done, too,
0:32:56 > 0:33:00with the oatmeal carpet, you've got your magnolia walls, you know, the nice features.
0:33:00 > 0:33:05Lots of light flooding in and it gets better, because you've also got access
0:33:07 > 0:33:09to your very own patio.
0:33:09 > 0:33:13Apparently, very few in this block have these.
0:33:13 > 0:33:15What a nice bit of outdoor space!
0:33:15 > 0:33:18You could put your plants here, some lounge chairs.
0:33:18 > 0:33:20A really nice additional thing to have.
0:33:20 > 0:33:25So, ground-floor flat with this added to it, it's a real winner.
0:33:26 > 0:33:29If this flat were an athlete, it would win a gold medal.
0:33:29 > 0:33:31But will a local estate agent think
0:33:31 > 0:33:35it has the ability to go the distance at auction
0:33:35 > 0:33:37and reach the heights, or could it be a flop?
0:33:40 > 0:33:46This apartment I feel is good, spacious accommodation and has appeal
0:33:46 > 0:33:48to a wide range of people.
0:33:49 > 0:33:51Well, that confirms my thoughts.
0:33:51 > 0:33:54This is a top lot, but what's the local area like?
0:33:54 > 0:33:58The area surrounding the property is an affluent area.
0:33:58 > 0:34:00200 yards up the road, you've Ringley Road
0:34:00 > 0:34:04which properties are exceeding, even in today's market, over £1 million,
0:34:04 > 0:34:06so it's a good, affluent area.
0:34:06 > 0:34:10You tend to find that purchasers move around within this area,
0:34:10 > 0:34:14so somebody could be selling on the doorstep a four-, five-bed detached
0:34:14 > 0:34:16to perhaps come here and have it as a second home.
0:34:17 > 0:34:22Areas like this tend to hold their value because they're considered desirable.
0:34:22 > 0:34:28That bodes well for any investor looking to buy the flat to hold on to for a year or two.
0:34:28 > 0:34:34Location is key when considering a purchase, so how much could someone stand to make here?
0:34:34 > 0:34:40In my opinion, rental value will be £650 to £675 per calendar month.
0:34:40 > 0:34:46And what would the value be if the flat was put back on the open market?
0:34:46 > 0:34:52In today's market in good decorative order this property would probably exceed £200,000, £205,000 perhaps.
0:34:52 > 0:34:56Hang on a minute, this place is already in excellent condition,
0:34:56 > 0:34:59so you don't really have to do a great deal at all.
0:34:59 > 0:35:06At that guide price of just £80,000 there could be a lot of money to be made here and what an opportunity!
0:35:06 > 0:35:08Well, what a lovely, lovely flat.
0:35:08 > 0:35:14You could literally move into it as it is and at anything like that guide price, an absolute steal.
0:35:14 > 0:35:16Let's see who fancied it at the auction.
0:35:16 > 0:35:21Lot number 89 is ground floor residential apartment.
0:35:21 > 0:35:2275 to start?
0:35:22 > 0:35:24Someone give me 75?
0:35:24 > 0:35:2675 here.
0:35:26 > 0:35:2880, then? 80 there.
0:35:28 > 0:35:3085? 90.
0:35:30 > 0:35:3295. 100.
0:35:32 > 0:35:35New bidder there at 100. 105?
0:35:35 > 0:35:37105 there. Looking for 110 now.
0:35:38 > 0:35:39110 here.
0:35:39 > 0:35:44115? 115 I have. 120.
0:35:44 > 0:35:49125. 130. 135. 140.
0:35:49 > 0:35:52145. 150.
0:35:53 > 0:35:56155? He's on the telephone.
0:35:56 > 0:35:58Yes. 160?
0:35:58 > 0:36:01No. I'll take 156.
0:36:01 > 0:36:03156 here, new bidder.
0:36:03 > 0:36:05157. 158.
0:36:05 > 0:36:06159?
0:36:06 > 0:36:08159 is in. 160.
0:36:08 > 0:36:10161, sir, on the phone?
0:36:10 > 0:36:13161 I've got. 162. Yes?
0:36:13 > 0:36:16Shall I say 163 on the telephone?
0:36:16 > 0:36:20163 I have.
0:36:20 > 0:36:23164. 165.
0:36:23 > 0:36:26166. 167?
0:36:26 > 0:36:27No?
0:36:27 > 0:36:30Are we all finished at 166? I'm going to sell for that figure.
0:36:30 > 0:36:34No we're not. 167 and a half, is that?
0:36:34 > 0:36:37Yes. 168.
0:36:38 > 0:36:4316... No, he's waving at me frantically. With you at 168, sir.
0:36:44 > 0:36:45First time at 168.
0:36:47 > 0:36:49Second time at £168,000.
0:36:49 > 0:36:50We're all done.
0:36:51 > 0:36:52What's your paddle number, please?
0:36:52 > 0:36:58After that frantic auction, the new owner of the flat is Lily. She didn't do the bidding,
0:36:58 > 0:37:00that was down to her grandson.
0:37:01 > 0:37:07With his bid and Lily's 168,000 they secured her a new home.
0:37:07 > 0:37:11I went to find out what she planned to do with it.
0:37:14 > 0:37:17- Lily, lovely to meet you. - Nice to meet you, too.
0:37:17 > 0:37:20- Congratulations.- Thank you.- Why did you want to buy the flat?
0:37:20 > 0:37:27Because it was in the right position for me, my home was too big for me and this was ideal.
0:37:27 > 0:37:31- So, you're downsizing, then. - Oh, yes, yes. I'm on... I live on my own now.
0:37:31 > 0:37:36- So, do you live close by?- Very, 300 yards from here.- Oh, really! - Yes, just before the church.- Right.
0:37:36 > 0:37:40- So, did you know about this building?- Oh, yes, I watched it being built.
0:37:40 > 0:37:43- Right.- Watched it right from day one.
0:37:43 > 0:37:46What was it about it that made you want to live here?
0:37:46 > 0:37:52Well, it's the best block in the whole of the area and I like Whitefield, I'm used to it.
0:37:52 > 0:37:57I know people around here, it's easy for me to get around with the car, I still drive the car!
0:37:57 > 0:37:59- Great.- And I just like the whole thing.
0:37:59 > 0:38:02My own home I lived for 45 years.
0:38:02 > 0:38:05- Oh, wow!- But it was...
0:38:05 > 0:38:09Got too big for me in the end and it was too much for me, I don't need it.
0:38:09 > 0:38:11So, this is ideal for me.
0:38:11 > 0:38:15- Tell me a bit more about you.- Well, I've had a very interesting life.
0:38:15 > 0:38:17- I was attached to the air force during the war...- Wow!
0:38:17 > 0:38:21And I used to be a driver, night driving.
0:38:21 > 0:38:29I came out of the Army and got married and my husband and I started a business.
0:38:29 > 0:38:34- What was the business?- Well, I was in the fashion business.- Oh, OK.
0:38:34 > 0:38:38- Great.- And we travelled extensively, a few times round the world.- Wow!
0:38:38 > 0:38:44So, there's very little that I haven't seen! My love is interior decorating and design.
0:38:44 > 0:38:47Some people have pleasure in cooking, not me.
0:38:47 > 0:38:50I'm not a cook, I'm a designer.
0:38:50 > 0:38:53Can I ask a rude question about how old are you, is that...
0:38:53 > 0:38:57- I'm 86.- 86!- Nearly 87.- Well, you look fantastic, if you don't mind me saying so.
0:38:57 > 0:39:03No. Well, I've worked very hard all my life and I'm not one of these coffee morning ladies.
0:39:03 > 0:39:06I had a wonderful husband, we had a wonderful life
0:39:06 > 0:39:12and I've got wonderful children, wonderful grandchildren and four beautiful great-grandchildren.
0:39:12 > 0:39:18- Great... You're a great-grandma! - Oh, yes, yes. The oldest is seven and the youngest one is three.
0:39:19 > 0:39:22That may be Lily's secret to staying so sprightly.
0:39:22 > 0:39:26I hope I'm as active when I get to her age!
0:39:26 > 0:39:28So, why did you go to the auction?
0:39:29 > 0:39:32Well, I've never been to an auction before.
0:39:32 > 0:39:35I've seen it on the television and I heard about this place
0:39:35 > 0:39:39and I knew what I was walking into before I even viewed it,
0:39:39 > 0:39:44and I went with my grandson and my daughter
0:39:44 > 0:39:47and it went a lot cheaper than what I thought I would have to pay for it.
0:39:47 > 0:39:49- Really? It went lot over the guide price.- Oh...
0:39:49 > 0:39:55- Well, the guide price of 80,000 is just what I call a sweetener.- Right. - That was to bring people in.
0:39:55 > 0:40:01And then it went up, before you turn round it was 140 and that's when the investors dropped out.
0:40:01 > 0:40:02You were happy with what you paid.
0:40:02 > 0:40:05- Happy?- Yeah.- I'll say I was!
0:40:06 > 0:40:13So, Lily's now got a new home in the area she knows with friends and family nearby.
0:40:13 > 0:40:16I was keen to hear exactly what she plans to do to the flat,
0:40:16 > 0:40:20so Lily invited me into the kitchen to discuss the details.
0:40:20 > 0:40:22Tell me what you're going to do in here.
0:40:22 > 0:40:27- Well, I'm going to put complete new kitchen fitments in. - Everything's coming out?
0:40:27 > 0:40:30- Oh, yes, everything.- Because they're probably five years old or so.
0:40:30 > 0:40:32Practically brand-new, but I don't care for wood.
0:40:32 > 0:40:38- Right.- And I like bright colours, so I'm going to do a lot to it.
0:40:38 > 0:40:43- And what about, like, the cooker and the hob, it's all going? - Everything, everything is going out.
0:40:43 > 0:40:50Not content with changing the kitchen, Lily also plans to decorate throughout.
0:40:50 > 0:40:52She wants some fitted wardrobes installed in the bedrooms
0:40:52 > 0:40:55and is going to update the bathroom and ensuite.
0:40:58 > 0:41:02So, any idea how much you're going to spend sorting this place out?
0:41:02 > 0:41:04At least £20,000.
0:41:04 > 0:41:08- Right.- There's a kitchen, fitted furniture in the two bedrooms
0:41:08 > 0:41:15- and curtains, security.- And how long do you think it's all going to take to get it sorted?
0:41:15 > 0:41:20Oh, well if... Me? If they listen to me and do what I ask them,
0:41:20 > 0:41:23I would say, including the decorating of the place,
0:41:23 > 0:41:28I would say it would be... You see, the kitchen is going to take five to six weeks to order,
0:41:28 > 0:41:31but apart from that I would say within a month, no problem.
0:41:31 > 0:41:37- But three months and it should all be sorted.- Oh, my goodness me, yes! When I move, Martin, I move!
0:41:37 > 0:41:41I don't doubt that for a second!
0:41:41 > 0:41:45Lily's been a very successful business person and has travelled around the world several times.
0:41:45 > 0:41:49This is a lady with serious get-up-and-go.
0:41:49 > 0:41:52Any builder taking her on would be wise to toe the line.
0:41:52 > 0:41:56- Lovely to meet you.- Nice to meet you, Martin.- Good luck. - You've made my day.
0:41:56 > 0:41:59Wait until I tell the people I've met Martin!
0:41:59 > 0:42:04- I'm delighted to meet you, too. I look forward to seeing how you get on, Lily.- Yes.
0:42:04 > 0:42:08# Welcome home
0:42:08 > 0:42:11# Welcome... #
0:42:11 > 0:42:17Well, how fantastic! Lily gets to move back to the area that she's lived in for over 40 years
0:42:17 > 0:42:20and is truly delighted with this place, and quite right, too.
0:42:20 > 0:42:23She's got some very interesting ideas for it
0:42:23 > 0:42:26and I can't wait to see how she gets on with that interior decoration.
0:42:26 > 0:42:28You can find out later in the show.
0:42:31 > 0:42:35Well, our intrepid investors have had loads of time to sort things out.
0:42:35 > 0:42:40- Well, has it been plain sailing or a hard slog? - Let's go back and find out.
0:42:42 > 0:42:47Back to Central London now, where former estate agent turned property developer Karsten
0:42:47 > 0:42:51picked up this one-bedroom flat in the heart of the financial district.
0:42:51 > 0:42:54He paid 255,000 at the auction
0:42:54 > 0:42:57and was planning to spend a healthy £12,000
0:42:57 > 0:43:01to turn it into a contemporary loft-style apartment.
0:43:01 > 0:43:03But with a tight six-week deadline
0:43:03 > 0:43:08and a lot of sandblasting on the cards, it wasn't going to be an easy job.
0:43:10 > 0:43:16Karsten's schedule has slipped slightly, but eight weeks later and work is nearly complete.
0:43:16 > 0:43:23The flat has been rewired and redecorated with new skirting boards and upgraded flooring throughout.
0:43:25 > 0:43:30The bathroom has seen some big improvements with new fittings and tiles
0:43:30 > 0:43:33to give it a cleaner, more modern feel.
0:43:35 > 0:43:38The bedroom's also been freshened up with new carpet and a new bed.
0:43:38 > 0:43:42Although Karsten has kept the fitted wardrobes,
0:43:42 > 0:43:46he's given them a coat of paint and replaced the handles to bring them up to date.
0:43:49 > 0:43:56But the heart and soul of this flat is really the open-plan living room and kitchen area.
0:43:56 > 0:43:59So, apart from the bathroom, one of the major changes,
0:43:59 > 0:44:02and probably the biggest change, was here in the kitchen.
0:44:02 > 0:44:07We could actually keep the carcass of the kitchen, change the facades,
0:44:07 > 0:44:11the sink, the tap, the dishwasher and so forth.
0:44:11 > 0:44:15The biggest expense was this big run of granite to incorporate the breakfast bar
0:44:15 > 0:44:17and just to try and make it look as smart as possible
0:44:17 > 0:44:22to match the tiling and actually just create a bit more of a wow factor.
0:44:24 > 0:44:28Well, I think Karsten has used his money wisely here.
0:44:28 > 0:44:31The tiles, cupboard doors and that large run of granite
0:44:31 > 0:44:34gives the impression of a completely new kitchen,
0:44:34 > 0:44:39even though the carcasses, extractor fan, hob and cooker haven't been changed at all.
0:44:42 > 0:44:46Karsten has used the extra granite to create the overhang for a breakfast bar
0:44:46 > 0:44:51making the kitchen a much more functional part of the overall living space.
0:44:52 > 0:44:54However, the granite didn't come cheap.
0:44:54 > 0:44:59At over £2,000, it was a significant part of the £12,000 budget.
0:45:00 > 0:45:04But he did manage to save around £1,000 on the flooring.
0:45:05 > 0:45:09The big boxes of timber that we'd bought to lay over the floor
0:45:09 > 0:45:12actually have gone back to the factory.
0:45:12 > 0:45:16We took up the laminate and the underlay that was throughout the whole flat
0:45:16 > 0:45:20and looked down and thought, this is the original timber floor,
0:45:20 > 0:45:24so probably about 110 years ago from when the building was still the cigar warehouse.
0:45:24 > 0:45:28It was in a real state and needed filling and sanding a couple of times,
0:45:28 > 0:45:31as well is varnishing throughout, and this is the finished product,
0:45:31 > 0:45:34something that I hope again gives lots of character,
0:45:34 > 0:45:37but is really practical and looks really smart.
0:45:40 > 0:45:45It certainly gives the flat a much more authentic warehouse feel than the old laminate flooring did,
0:45:45 > 0:45:50but one thing I was hoping to see was some exposed brickwork.
0:45:50 > 0:45:55Karsten has promised to spend some time sandblasting the walls, what happened?
0:45:55 > 0:45:59We did the sandblasting, or started doing the sandblasting, and obviously
0:45:59 > 0:46:03once you strip away the paint and get the muck around the place, just doing a couple of square metres
0:46:03 > 0:46:08we realised the bricks, whilst perfectly physically sound, actually looked a bit of a dog's dinner.
0:46:08 > 0:46:12It's, I suppose, not such a surprise with a building of this age.
0:46:12 > 0:46:14It made more sense to seal up all the walls
0:46:14 > 0:46:19and make sure that they were all weatherproof and no issue with damp and so forth,
0:46:19 > 0:46:20and then actually to decorate.
0:46:23 > 0:46:25Well, that's fair enough,
0:46:25 > 0:46:29and a good example of the flexibility you need to have on a project like this.
0:46:29 > 0:46:34Karsten's experience as an estate agent has helped him keep an eye on his target market.
0:46:34 > 0:46:38He's brought out the character here without being too quirky.
0:46:40 > 0:46:45It's not supposed to be the uber-funky bachelor pad with bells,
0:46:45 > 0:46:48whistles, gadgets and so forth, but it would be a...
0:46:48 > 0:46:51would have been a real shame to lose the character.
0:46:52 > 0:46:57One thing that worried me when I first visited here was the bar downstairs,
0:46:57 > 0:47:00which might also have deterred some buyers.
0:47:00 > 0:47:05Well, it's now been refurbished and the owner has added a lot of sound insulation.
0:47:07 > 0:47:11Whilst he was doing the refurbishment he wanted to test his sound system.
0:47:11 > 0:47:16They put it up at such an incredibly loud volume, more than it would normally be,
0:47:16 > 0:47:19to see if upstairs we could hear it with the new insulation they put in,
0:47:19 > 0:47:22and the answer, thank goodness, was we can't hear a thing.
0:47:22 > 0:47:27I can understand entirely why some people would be hesitant if there was a pub or a bar below them.
0:47:27 > 0:47:30In this case it's been handled really well
0:47:30 > 0:47:34and I think it genuinely is to the building and the local area's benefit.
0:47:34 > 0:47:38Karsten originally set himself a £12,000 renovation budget
0:47:38 > 0:47:41and he's gone very slightly over that
0:47:41 > 0:47:45with a final figure of around £12,200.
0:47:45 > 0:47:51That takes his total for this project up to around £268,000.
0:47:51 > 0:47:55He's made a lot of cosmetic changes, but the original brickwork
0:47:55 > 0:47:59still remains hidden, so has it been worth it?
0:48:02 > 0:48:06Will Karsten achieve the £300,000 he's hoping for?
0:48:06 > 0:48:09We asked two local estate agents for their views.
0:48:09 > 0:48:12As you would expect, most new developments in the area
0:48:12 > 0:48:15are all built to a template.
0:48:15 > 0:48:18This has a lot of unique features
0:48:18 > 0:48:23that are only evident in this particular apartment making it a great, great property.
0:48:23 > 0:48:26The flat itself is a brilliant product.
0:48:26 > 0:48:30It's very close to the City, it's in a character building,
0:48:30 > 0:48:34great height and light in the building.
0:48:34 > 0:48:37It's got reclaimed flooring that's been brought up to standard.
0:48:37 > 0:48:40The kitchen and bathrooms have been updated on it.
0:48:40 > 0:48:45The only thing is it doesn't have parking, but in this area it's not such an issue.
0:48:45 > 0:48:49Most people will commute to work and it's on the fringes of the City.
0:48:49 > 0:48:53The property would appeal very well to either a single worker,
0:48:53 > 0:48:55which works in the City, a first-time buyer,
0:48:55 > 0:48:59but it will also be very popular with the buy-to-let investors.
0:48:59 > 0:49:02It is situated in a great...
0:49:02 > 0:49:04in an area that has great demand for buy-to-let.
0:49:06 > 0:49:11And great demand means good potential rental income.
0:49:11 > 0:49:17We would look to market the property between £1,450 and £1,500 per calendar month.
0:49:17 > 0:49:20We would look at something round about the 1,400 per calendar month.
0:49:20 > 0:49:23The rental is definitely a second option.
0:49:23 > 0:49:26It's good to know at that level we would cover our costs,
0:49:26 > 0:49:32so if the flat were rented for six months, 12 months, and then was sold on that could be absolutely fine.
0:49:33 > 0:49:38Those figures would give Karsten around a 6.5% rental return
0:49:38 > 0:49:41on his £268,000 total investment.
0:49:43 > 0:49:48But will the flat's resale value be above the £300,000 he's expecting?
0:49:50 > 0:49:56The property should probably go on the market for around £320,000 to achieve a price very close to that.
0:49:56 > 0:50:01We think it would be on the market round about 350.
0:50:01 > 0:50:05At the moment people are achieving fairly close to the asking price
0:50:05 > 0:50:08because there isn't much property on the market at the moment.
0:50:08 > 0:50:12We've always had a figure in our minds midway between those two,
0:50:12 > 0:50:14possibly slightly nearer the lower figure,
0:50:14 > 0:50:17so I'm not uncomfortable with either of those valuations.
0:50:18 > 0:50:22The latest update is that Karsten has now sold it for 330,000,
0:50:22 > 0:50:26so allowing Stamp Duty and other expenses
0:50:26 > 0:50:31his pre-tax profit could be around a very impressive 50,000.
0:50:36 > 0:50:40Back to Manchester now where 86-year-old Lily paid 168,000
0:50:40 > 0:50:44for an apartment in this imposing development.
0:50:44 > 0:50:48She was downsizing from her three-bedroom two-bathroom bungalow nearby.
0:50:48 > 0:50:52Although the flat was less than 10 years old it wasn't to Lily's taste,
0:50:52 > 0:50:57so she planned to put her love of interior design into practice to make it a home.
0:50:59 > 0:51:05Well, it's now four-and-a-half months later and Lily's invited us back to see her lovely new home
0:51:05 > 0:51:12and, true to her word, the flat has a wonderfully light feel and some sumptuous curtains and furnishings.
0:51:12 > 0:51:14So, how did it all go?
0:51:16 > 0:51:18I've had it decorated.
0:51:18 > 0:51:21I've had all new carpets, new curtains,
0:51:21 > 0:51:25fitted bedroom furniture in both rooms,
0:51:25 > 0:51:28tiled floors in two bathrooms and the kitchens.
0:51:28 > 0:51:30It's a complete new flat.
0:51:30 > 0:51:32It's homely.
0:51:32 > 0:51:34It's to my taste.
0:51:34 > 0:51:37Although the original kitchen was very well equipped,
0:51:37 > 0:51:42Lily wanted to change the units and appliances to give it her personal touch.
0:51:42 > 0:51:46Here we are in the kitchen
0:51:46 > 0:51:48that I've had a completely new kitchen put in.
0:51:48 > 0:51:52I didn't like the old one, it was very dark and depressing,
0:51:52 > 0:51:53and I'm very pleased with it.
0:51:53 > 0:51:58All the appliances have been absolutely beautiful.
0:51:59 > 0:52:02They say the kitchen is the heart of a house,
0:52:02 > 0:52:07so has this tasteful refurbishment made Lily feel that she's now at home?
0:52:07 > 0:52:13Oh, it feels like home because I filled it with things that I love and it's plenty big enough for me.
0:52:13 > 0:52:16I brought a lot of things from my other home, pictures.
0:52:16 > 0:52:21I've had to buy a smaller dining room table, bought a new bed, a smaller bed.
0:52:22 > 0:52:26The bedroom furniture took about three weeks, too.
0:52:26 > 0:52:32I got one or two estimates and that, but I picked this man and he did the two bedrooms for me.
0:52:33 > 0:52:36Lily's had a lot of help from friends and family but, of course,
0:52:36 > 0:52:42specialist tradesmen were required to install the kitchen, do the plumbing and build the wardrobes.
0:52:42 > 0:52:44Were there any problems?
0:52:45 > 0:52:47Very happy with the workmen.
0:52:47 > 0:52:49I've had some wonderful workmen here.
0:52:49 > 0:52:52I've cracked the whip once or twice...to get what I want!
0:52:52 > 0:52:55Before anything is done that's permanent
0:52:55 > 0:52:58I always say, now show me first.
0:52:58 > 0:53:00I don't like to, um...
0:53:00 > 0:53:03start crying after and saying it's all wrong,
0:53:03 > 0:53:05because then you become a nuisance.
0:53:06 > 0:53:10I bet many builders wish more people would be so decisive.
0:53:10 > 0:53:17So, how much has this refurbishment cost Lily on top of her £168,000 purchase price?
0:53:17 > 0:53:19I said I was going to spend about 20.
0:53:19 > 0:53:24I've spent about, say between 20, maybe 22. I don't know.
0:53:24 > 0:53:26No more. Certainly no more.
0:53:26 > 0:53:30It must have been a challenge and a half for Lily
0:53:30 > 0:53:34deciding what to bring from her former house to her new home.
0:53:34 > 0:53:37What about the things that haven't made the journey?
0:53:37 > 0:53:41I've given a lot of things away to the charity shop.
0:53:41 > 0:53:47You can imagine what I accumulated in 40 odd... Well, nearly 60 years!
0:53:47 > 0:53:49I was married in 1945.
0:53:49 > 0:53:56But I've given it away to the Cancer and the All Abroad and the hospices,
0:53:56 > 0:53:57and there's more to come.
0:53:57 > 0:54:01Well, that's brilliant and I'm sure very much appreciated.
0:54:01 > 0:54:05But now that she's settled in, what do her family think of her new place?
0:54:05 > 0:54:08Well, they're thrilled to bits that...
0:54:08 > 0:54:11My daughter, who lives very close by, is thrilled that I'm here.
0:54:11 > 0:54:13My son is a wonderful boy.
0:54:13 > 0:54:18I've got... I'm blessed with two wonderful children who care for me,
0:54:18 > 0:54:23and my seven grandchildren also, and four great-grandchildren.
0:54:24 > 0:54:29But it's not just the generation game that's a favourite with Lily.
0:54:29 > 0:54:36I'm very happy here. I love my television, 10 o'clock, nobody dare phone me, Homes Under The Hammer!
0:54:36 > 0:54:40Well, I hope you're enjoying this programme about your auction purchase, Lily!
0:54:42 > 0:54:44And we're about to find out
0:54:44 > 0:54:48what two local estate agents think of your refurbishment.
0:54:50 > 0:54:52It's a very well regarded location.
0:54:52 > 0:54:55The development itself is highly sought after.
0:54:55 > 0:54:57She's done a good job of the renovation.
0:54:57 > 0:54:59When we first came to the property,
0:54:59 > 0:55:02although it's less than 10 years old, it was neutral,
0:55:02 > 0:55:06it had got a serviceable kitchen, white bathrooms etc,
0:55:06 > 0:55:08but the current vendor has improved that.
0:55:08 > 0:55:12The finish is excellent. Good quality materials have been used
0:55:12 > 0:55:16offering plenty of storage and clean lines in the kitchen.
0:55:16 > 0:55:18The finish is superb. Modern and contemporary.
0:55:18 > 0:55:21The quality, hasn't skimped on the cost by far.
0:55:21 > 0:55:24Location, highly regarded and a very prestigious development.
0:55:24 > 0:55:29So, a thumbs up for Lily's colour scheme and all the fittings.
0:55:29 > 0:55:31How much is the flat now worth?
0:55:31 > 0:55:39Remember, she paid 168,000 at the auction and has spent about £22,000 on making it a home.
0:55:39 > 0:55:46We'd market this property between £160,000 to a maximum of £170,000.
0:55:46 > 0:55:50I would look to put this property on the market for £170,000.
0:55:50 > 0:55:56170? Well, I'm very pleased they think that because I don't think that!
0:55:56 > 0:56:00I'll buy six tomorrow at 170 that looks like this!
0:56:02 > 0:56:05No, no, they're way off beam in my opinion.
0:56:05 > 0:56:07Still, maybe no profit there,
0:56:07 > 0:56:12but it's been a very difficult property market since Lily bought the flat.
0:56:12 > 0:56:15But in this case I don't think it matters.
0:56:15 > 0:56:19Lily spent what she wanted to make this her home and you can't put a price on that.
0:56:21 > 0:56:24# Welcome home... #
0:56:24 > 0:56:28Lily settled in here in the month of her 87th birthday.
0:56:28 > 0:56:30So, has all the upheaval been worth it?
0:56:30 > 0:56:33Yes, it does feel like home
0:56:33 > 0:56:36because it's furnished to my taste
0:56:36 > 0:56:41and it's homely and it's warm
0:56:41 > 0:56:43and I just love it, and that's all there's to it!
0:56:43 > 0:56:46It's been an adventure, it's been enjoyable.
0:56:46 > 0:56:51I've loved every moment of it and I'm very happy where I am and what I've done.
0:56:51 > 0:56:54Very happy indeed.
0:56:56 > 0:57:02- That's it, but join us next time for more Homes Under The Hammer. - See you then.- Goodbye.- Goodbye.
0:57:23 > 0:57:26Subtitles by Red Bee Media Ltd
0:57:26 > 0:57:27E-mail subtitling@bbc.co.uk