0:00:02 > 0:00:05Buying property in the right location is more important than ever.
0:00:05 > 0:00:10Yes, buying in a good spot makes your property easier to sell or rent out.
0:00:10 > 0:00:13The good news is property auctions are all over the country,
0:00:13 > 0:00:17so the chances are you will find a home you like under the hammer.
0:00:42 > 0:00:45Buying property is one of the most stressful things you'll ever do.
0:00:45 > 0:00:50Yes, it's important to realise there may be problems and pressures ahead.
0:00:50 > 0:00:54So will today's buyers be able to take the strain?
0:00:55 > 0:01:01'Not everything at this property in Exeter is as it seems.'
0:01:01 > 0:01:04The layout of the house just isn't doing it for me.
0:01:04 > 0:01:07'You can see the sights of London
0:01:07 > 0:01:10'from the flat at the top of this block.'
0:01:10 > 0:01:14I mean, look where we are, we're in the heart of London! Look at that view!
0:01:16 > 0:01:21'And in Derby, I find a sizeable garden round the back of this semi.'
0:01:21 > 0:01:24When I say it's a sizeable garden... it's big.
0:01:25 > 0:01:28All these properties have been sold at auction, and we find out
0:01:28 > 0:01:32who bought them and for how much when they went under the hammer.
0:01:32 > 0:01:33Sold.
0:01:37 > 0:01:44'I'm in Alphington near Exeter, where one property has an intriguing background.'
0:01:44 > 0:01:50Now, we all know that property prices have gone up over time, but here is a really interesting fact.
0:01:50 > 0:01:58When it was last sold in 1959 the house that I'm here to see was sold for £1,400.
0:01:58 > 0:02:05Well, at a recent auction that same house had a guide price of £115,000.
0:02:05 > 0:02:08That's 100 times more!
0:02:08 > 0:02:12Now, just think, what would your house be worth
0:02:12 > 0:02:18in 50 years' time if inflation carries on at those levels.
0:02:18 > 0:02:19Anyway, this is it.
0:02:19 > 0:02:23It's a two/three-bedroomed mid-terrace. Let's take a look.
0:02:24 > 0:02:27'From outside, things look good.
0:02:27 > 0:02:30'Roses around doors usually create a homely lived-in charm,
0:02:30 > 0:02:34'so let's see if it meets my expectations.'
0:02:35 > 0:02:41OK, straight into this little porch area. Now, I'm normally a big fan of these places -
0:02:41 > 0:02:44a place to put your bike and stuff - but in this case it just doesn't work,
0:02:44 > 0:02:47partly because there's another door into the entrance hall
0:02:47 > 0:02:51to the actual house, and it just feels cramped and claustrophobic,
0:02:51 > 0:02:54not least because you go straight into the staircase here.
0:02:54 > 0:02:55At the very least open that up,
0:02:55 > 0:02:58so you've got spindles on there with light coming through.
0:02:58 > 0:03:00But yeah, we don't like that at all.
0:03:00 > 0:03:02Front room there doesn't look to be a bad size.
0:03:02 > 0:03:06More kind of strange rooms going off in this direction
0:03:06 > 0:03:07and then through into the kitchen.
0:03:07 > 0:03:12Now, intrinsically it's not a bad-sized room.
0:03:12 > 0:03:16Units - well, if you were going to rent this out they would probably make do.
0:03:16 > 0:03:20I think you could do a lot more with this space, and again, it doesn't feel right.
0:03:20 > 0:03:23The layout of the house just isn't doing it for me,
0:03:23 > 0:03:26and I don't know what I'm going to do to make it better.
0:03:26 > 0:03:28It gets worse. I mean, what is this room all about?
0:03:28 > 0:03:32It's sort of like a passageway through to the rear of the property.
0:03:32 > 0:03:35It's too small for a sofa - it just doesn't do anything.
0:03:35 > 0:03:39And then you carry on into what I suppose is the "third bedroom".
0:03:39 > 0:03:43Could you get a bed in here? Maybe just about, but I'm more concerned
0:03:43 > 0:03:47about the quality of construction. If THIS is anything to go by...
0:03:47 > 0:03:50'..then goodness knows what the rest of the house will be like.
0:03:50 > 0:03:55'The layout here hasn't exactly got me enthusiastic about the place.'
0:03:55 > 0:03:58So, tacked on to the rear of the property
0:03:58 > 0:04:00are some very strange bits and pieces.
0:04:00 > 0:04:03First of all there's this sort of utility room,
0:04:03 > 0:04:05which I suppose is a reasonable-sized space.
0:04:05 > 0:04:08But then there's almost like an extension
0:04:08 > 0:04:11tacked on to the extension, which is this bit here.
0:04:11 > 0:04:15It's actually got that small bedroom in it, but it really doesn't work.
0:04:15 > 0:04:18The garden, though, is quite pleasant.
0:04:18 > 0:04:22A reasonable size. It's obviously in need of a bit of tender loving care,
0:04:22 > 0:04:24but that's not too big an issue.
0:04:24 > 0:04:27But those two additions definitely need taking a look at.
0:04:27 > 0:04:30'So, no positive vibes yet about this house.
0:04:30 > 0:04:36'The front room's the only redeeming feature of the ground floor so far.
0:04:36 > 0:04:38'Oh, well - onwards and upwards.'
0:04:39 > 0:04:43Well, upstairs, thankfully, the layout improves.
0:04:43 > 0:04:46Sadly the choice of lampshades doesn't! Interesting(!)
0:04:46 > 0:04:47But er...what have we got?
0:04:47 > 0:04:50Basically, a big double bedroom on the front. We like that.
0:04:50 > 0:04:54Bathroom - well, it's not huge and it's certainly in need of rejuvenation.
0:04:54 > 0:04:57Money spent in there would definitely be well spent, though.
0:04:57 > 0:05:01Rear bedroom, and look at this -
0:05:01 > 0:05:04the piece de la resistance of lampshades.
0:05:04 > 0:05:06Quite spectacular!
0:05:06 > 0:05:09Something a bit more seriously wrong though is out the back -
0:05:09 > 0:05:11or potentially wrong, for sure.
0:05:11 > 0:05:14Bottom of the garden you can see that there is some kind of
0:05:14 > 0:05:16industrial complex, and what
0:05:16 > 0:05:19I'm more concerned about is the bit of land at the back.
0:05:19 > 0:05:23It looks ripe for development, so what you need to do is make sure
0:05:23 > 0:05:25that your solicitor checks out,
0:05:25 > 0:05:29looks at the local searches and the local town plans, makes sure there's
0:05:29 > 0:05:34nothing major planned to go there, because that would definitely affect the value of the house.
0:05:34 > 0:05:37'Something that all would-be developers should look out for.
0:05:37 > 0:05:41'Research the area and make sure there's no planned development
0:05:41 > 0:05:45'that could have a negative effect on the value of your house.
0:05:45 > 0:05:47'Let's face it, the ground floor arrangements here
0:05:47 > 0:05:50'are a big negative.
0:05:50 > 0:05:55'But what does a local estate agent make of this three-bedroomed terrace
0:05:55 > 0:05:58'that was guided at 115,000?'
0:05:58 > 0:06:02It's a typical auction lot. It needs renovation from top to bottom.
0:06:02 > 0:06:05New kitchen, new bathroom, redecoration,
0:06:05 > 0:06:09a reconfiguration of the downstairs to make it a third bedroom.
0:06:09 > 0:06:12And if you're a keen gardener, there's plenty to do outside.
0:06:14 > 0:06:19'Let's talk figures. How much could someone make on this place once renovated?'
0:06:19 > 0:06:25The rental market's quite strong, and I would expect it to fetch 600 to 650 per calendar month.
0:06:25 > 0:06:28'What about the resale value?'
0:06:28 > 0:06:33A property like this in this street could fetch somewhere in the region of £160,000.
0:06:34 > 0:06:39Well, the upstairs is fine, but the downstairs definitely needs reconfiguring, doesn't it?
0:06:39 > 0:06:44But remember that £115,000 guide price, not at all bad for this area.
0:06:44 > 0:06:47Let's find out what happened when it went to the auction.
0:06:49 > 0:06:55It's 38 Blenheim Road, Alphington in Exeter. 110...
0:06:55 > 0:06:5611?
0:06:56 > 0:06:58111.
0:06:58 > 0:07:02112. 113.
0:07:02 > 0:07:0314.
0:07:03 > 0:07:0615. 16.
0:07:06 > 0:07:0817.
0:07:08 > 0:07:1018.
0:07:10 > 0:07:1319. 20.
0:07:13 > 0:07:17121. 122. 123.
0:07:17 > 0:07:19124. Young man in the middle.
0:07:19 > 0:07:23125. 126.
0:07:23 > 0:07:26127. 128.
0:07:26 > 0:07:29129. It's the young man down the middle.
0:07:29 > 0:07:32Oh, a fresh face at 130.
0:07:33 > 0:07:35131. 131 and a half.
0:07:35 > 0:07:38132. 132 and a half.
0:07:38 > 0:07:42132 and a half. 133. 133.
0:07:42 > 0:07:45133. 133 and a half.
0:07:45 > 0:07:47133 and a half. 133 and a half.
0:07:47 > 0:07:51At 33 and a half, first time...
0:07:51 > 0:07:52133 and a half, second...
0:07:52 > 0:07:54At 133 and a half.
0:07:54 > 0:07:57Gentlemen on your left's got it at 133 and a half.
0:07:57 > 0:08:01Sir, yours, congratulations, there we go.
0:08:01 > 0:08:07'That successful bid of 133,500 quid came from Ian and his wife, Yanni.
0:08:07 > 0:08:11'Ian runs a landscaping and building business.
0:08:11 > 0:08:16'I met them back of the house where Ian told me about their plans.'
0:08:16 > 0:08:19- Ian, lovely to meet you. - And you.- Congratulations.
0:08:19 > 0:08:21Why did you want to buy the house?
0:08:21 > 0:08:26Well, there's many I've looked at and I got it from auction because I thought it was the right price.
0:08:26 > 0:08:30The cheapest one in the area has been sold for 170, so I thought 133
0:08:30 > 0:08:36would give me room for manoeuvre in doing what I want to do.
0:08:36 > 0:08:39So you've done your research and all that kind of stuff.
0:08:39 > 0:08:41No, I've done no research at all.
0:08:41 > 0:08:43You know that prices in the area are 170.
0:08:43 > 0:08:46I take a gamble, because this is the ninth one I've done.
0:08:46 > 0:08:49- Right.- So, some... Some you win, some you lose.
0:08:49 > 0:08:52Right. Tell me about the ones that have been successful.
0:08:52 > 0:08:55One in Plymouth was very successful.
0:08:55 > 0:09:00Bought it for 40, sold it for 90 and it cost me 10,000 to do up, basically.
0:09:00 > 0:09:02- Wow, quick turnaround. - It was very quick.
0:09:02 > 0:09:05- It was on the market two weeks.- Wow!
0:09:05 > 0:09:08- So that was quick turnaround.- And one where it hasn't gone so well?
0:09:08 > 0:09:10I lost 40,000 on it.
0:09:10 > 0:09:14So the one that I did well on, I lost the following year on the next one.
0:09:14 > 0:09:17Oh... How come you lost 40,000, what happened?
0:09:17 > 0:09:18I bought it at the height.
0:09:18 > 0:09:22Bought it at auction, got carried away, didn't put down a maximum figure
0:09:22 > 0:09:24like I should have done...
0:09:24 > 0:09:26Paid too much. I should have stopped.
0:09:26 > 0:09:30# You got to know when to hold 'em
0:09:30 > 0:09:33# Know when to fold 'em
0:09:33 > 0:09:35# Know when to walk away... #
0:09:35 > 0:09:41'After that experience, Ian is brave to dip his toe back into the choppy waters of the property market.
0:09:42 > 0:09:44'Fate seems to be working against him.
0:09:44 > 0:09:49'He had a minor car accident on the way to see the house pre-auction,
0:09:49 > 0:09:53'which made him late, so he only managed to see it for five minutes.
0:09:53 > 0:09:57'He may not have bought it blind, but certainly partially-sighted!'
0:09:57 > 0:10:02Having seen it for slightly longer than five minutes now, how do you feel?
0:10:02 > 0:10:07Well, for the next hour, I'm thinking, have I done right?
0:10:07 > 0:10:11Have I made a mistake or will it work out OK?
0:10:11 > 0:10:14So at this moment in time as we stand in your kitchen,
0:10:14 > 0:10:18you're not sure whether it's going to be a success or a failure?
0:10:18 > 0:10:20- No.- Oh!
0:10:20 > 0:10:23Not at all. Because life's a gamble, isn't it?
0:10:23 > 0:10:31We're all a long time dead, so we've got to make sure that you take these gambles and go for it.
0:10:31 > 0:10:33'Well, I love Ian's up-and-at-'em spirit,
0:10:33 > 0:10:37'but I'm not sure about his developing methods.
0:10:37 > 0:10:40'Still, several of his other houses HAVE paid their way in the past,
0:10:40 > 0:10:42'so he must know something.
0:10:42 > 0:10:45'I asked his wife Yanni for her thoughts
0:10:45 > 0:10:48'on his approach to property.'
0:10:48 > 0:10:51Well, erm....it doesn't actually give us a return,
0:10:51 > 0:10:54because the properties are let out and they just pay for themselves.
0:10:54 > 0:10:58But every time he says to me this'll be the last one -
0:10:58 > 0:11:01and yet we've bought another one! And here we are again.
0:11:01 > 0:11:05But hopefully, because we lost on the last one, this'll give us a profit
0:11:05 > 0:11:07to move on and possibly do another one.
0:11:07 > 0:11:09'Positive vibes from Yanni.
0:11:09 > 0:11:12'She obviously supports Ian wholeheartedly.'
0:11:12 > 0:11:16'What's her role in the developing process?'
0:11:16 > 0:11:17Try and keep things to budget.
0:11:17 > 0:11:21I do all the paperwork behind the scenes, any planning applications.
0:11:21 > 0:11:24All the budgeting, making things aesthetically pleasing.
0:11:24 > 0:11:27Maybe furnishings, you know...
0:11:27 > 0:11:31The woman's touch, if you like, when it comes to the internal.
0:11:32 > 0:11:35'But there's work needed here to make it earn money.
0:11:35 > 0:11:38'What's Ian's budget?'
0:11:38 > 0:11:41I don't want to go over 20,000, but I've got a budget of 25.
0:11:41 > 0:11:44Right. That's quite a healthy budget.
0:11:44 > 0:11:52Well, you're looking 3,000 to 5,000 for the kitchen, 2,000 rewiring, 3,000 for the drive...
0:11:52 > 0:11:55Bathroom's going to be another couple of thousand.
0:11:55 > 0:11:58By the time you to add it all up, and then take into the accounts
0:11:58 > 0:12:01what you're paying back to the bank each month,
0:12:01 > 0:12:06it's got to be a relatively quick turnaround,
0:12:06 > 0:12:09or alternatively if you don't sell it I've got to let it,
0:12:09 > 0:12:12so I've got to make sure I'm still within budget to let it.
0:12:12 > 0:12:16'Ian's planning to do this job in his spare time. And his timescale?
0:12:16 > 0:12:19'Well, how about six to 12 months?
0:12:19 > 0:12:22'I can't believe that's his idea of a quick turnaround!
0:12:22 > 0:12:26'It's another example of Ian's rather individual take on developing.'
0:12:26 > 0:12:32So what does your wife think about your strategy - he says in inverted commas - for property investing?
0:12:32 > 0:12:36I think really deep down she thinks I'm mad.
0:12:37 > 0:12:40And certifiably, probably, yes!
0:12:42 > 0:12:45But yeah, I think she thinks I'm a bit nutty, but what I do, I do,
0:12:45 > 0:12:49and she'll never change me. And she's met me and has to accept that.
0:12:51 > 0:12:53So er...yes, that's the way I am.
0:12:53 > 0:12:56If I want to do it, I will do it and that is it.
0:12:56 > 0:12:58MUSIC: "Crazy" by Gnarls Barkley
0:13:03 > 0:13:08So, Ian with a rather unconventional attitude towards property investment.
0:13:08 > 0:13:11Will he make a success of this one or not?
0:13:11 > 0:13:13You know what? I don't think even HE knows.
0:13:13 > 0:13:16You can find out later in the show.
0:13:19 > 0:13:25When you think of parks, you think of wide-open spaces, trees, flower beds and a playground.
0:13:25 > 0:13:29Well, the Royal Regent's Park in northwest London offers just a little more.
0:13:29 > 0:13:34All the usual cafes and mature shrubs, plus an open air theatre,
0:13:34 > 0:13:38a community sports centre and even a zoo.
0:13:38 > 0:13:39MUSIC: "Parklife" by Blur
0:13:39 > 0:13:43'Well, that's certainly one lively park, and because it's on the cusp
0:13:43 > 0:13:48'of the West End and a short commute to the City, property prices tend to be high.
0:13:48 > 0:13:52'I'm off to Park Road, right on the park's borders.'
0:13:55 > 0:13:57And here I am.
0:13:57 > 0:14:04Now, two years ago a flat in this block sold for a staggering £550,000.
0:14:04 > 0:14:09Today, a guide on a one-bed flat in this block - just 275,000.
0:14:11 > 0:14:15'It's a telling sign of recent changes in the property market.
0:14:15 > 0:14:20'But this place, built in the 1920s, is impressive, solid and attractive.
0:14:20 > 0:14:26'However, more importantly, the lift is working - because I'm off to the seventh floor!'
0:14:27 > 0:14:28Ooh...
0:14:28 > 0:14:31Do you know, I don't know what I was expecting in here,
0:14:31 > 0:14:35but it's quite a treat to walk into such an open space.
0:14:35 > 0:14:38You've got all the rooms running off this main entrance area,
0:14:38 > 0:14:40and what I like is the little Art Deco features -
0:14:40 > 0:14:42I mean, look at that front door.
0:14:42 > 0:14:45You've got a lovely wide front door, big deep cornicing...
0:14:45 > 0:14:48But you can see straight away the flat's in a state!
0:14:48 > 0:14:52Half a ripped-out kitchen, the bathroom's all falling apart...
0:14:52 > 0:14:56But a really big space here. So this would be the lounge area.
0:14:56 > 0:15:00Now, straight away my eye is drawn to that window
0:15:00 > 0:15:03and the little window you've got round here in the kitchen.
0:15:03 > 0:15:06It would be great to take this wall out,
0:15:06 > 0:15:08and just walk into one big open space.
0:15:08 > 0:15:13Imagine the light that would create, and you'd have two corking views.
0:15:13 > 0:15:19But my only concern is, the freeholders of this property would not let you take this wall out,
0:15:19 > 0:15:22so the chances are this will have to stay as it is.
0:15:22 > 0:15:24But you've got this nice little fireplace here, look.
0:15:24 > 0:15:26Little Art Deco style.
0:15:26 > 0:15:28It's got a really good feel, this property,
0:15:28 > 0:15:32you could have a sofa there, big flat screen telly on that wall...
0:15:32 > 0:15:35But I think the best thing is - look where we are!
0:15:35 > 0:15:37We're in the heart of London!
0:15:37 > 0:15:39Look at that view. It's crackin'.
0:15:41 > 0:15:42'Oh, it really is.
0:15:42 > 0:15:46'And you're just a short hop, skip and a jump from Paddington station.
0:15:48 > 0:15:52'With just one, but decent-sized bedroom, this is certainly a city pad.
0:15:52 > 0:15:54'It's a shame the kitchen and bathroom
0:15:54 > 0:15:56'aren't as impressive as the views.
0:15:56 > 0:16:00'It's why a flat with this sort of potential was sold at auction.
0:16:00 > 0:16:01'With no working kitchen and bathroom,
0:16:01 > 0:16:05'this place would probably be unmortgageable,
0:16:05 > 0:16:07'so it was for cash buyers only.
0:16:07 > 0:16:12'It's also leasehold, but has 150 years left to run.'
0:16:13 > 0:16:15This purpose-built block was built in the 1930s,
0:16:15 > 0:16:19and for its age, you know, I think it's in quite good condition.
0:16:19 > 0:16:21The communal area is well maintained,
0:16:21 > 0:16:22plus you get your very own porter.
0:16:22 > 0:16:26Any packages will be signed for, and it's comforting to know that
0:16:26 > 0:16:30somebody's manning that door. But, that comes at a price.
0:16:30 > 0:16:37The service charge for this block is a whopping £4,500 a year.
0:16:37 > 0:16:39If you fail to see that in the legal pack,
0:16:39 > 0:16:42you could be in for a very expensive surprise!
0:16:42 > 0:16:44'That's a massive charge every year,
0:16:44 > 0:16:49'and something you'd have to factor in to your costs for this flat.'
0:16:50 > 0:16:54You can see this is a lovely period bay window,
0:16:54 > 0:16:58but run my hand along here, and you can certainly feel a draught.
0:16:58 > 0:17:02Now, that is because they're Crittal metal single-paned windows,
0:17:02 > 0:17:06so the new buyer may want to come along and double-glaze them.
0:17:06 > 0:17:10Well, I'm afraid that won't be possible, as the freeholder will not
0:17:10 > 0:17:14allow it, because all the windows in this building need to look the same.
0:17:15 > 0:17:20'Yes, uniformity is extremely important to the freeholders of this block.
0:17:20 > 0:17:24'Preserving the look of this period frontage is really important.
0:17:25 > 0:17:29'But something else is more crucial for investors.'
0:17:30 > 0:17:34The rental market in this area is very strong.
0:17:34 > 0:17:36Now, Regent's College has up to 2,500 students,
0:17:36 > 0:17:40and the London Business School, which happens to be directly opposite,
0:17:40 > 0:17:43has just under 2,000 students.
0:17:43 > 0:17:46No shortage of tenants, then!
0:17:46 > 0:17:50'With that guide price of 275,000,
0:17:50 > 0:17:52'this could be an interesting investment -
0:17:52 > 0:17:54'but remember - cash buyers only.
0:17:54 > 0:17:59'What does a local estate agent make of this one-bed flat in Regent's Park?'
0:18:00 > 0:18:05Rossmore Court is ideal for people looking to live as a pied-a-terre or as a rental investment.
0:18:05 > 0:18:09Very few of them actually come on to the market. There's something like
0:18:09 > 0:18:13about 130 flats in this block, and we've only sold one this year.
0:18:13 > 0:18:17'That's because its location on the edge of the West End,
0:18:17 > 0:18:21'its easy access to major transport links and nearby Regent's Park
0:18:21 > 0:18:22'makes it a gem.
0:18:22 > 0:18:28'However, that service charge is not such a treasure.'
0:18:28 > 0:18:32The service charge is just over 4,500 a year,
0:18:32 > 0:18:35which...is not an immodest sum.
0:18:35 > 0:18:39It does cover heating, communal heating and communal hot water.
0:18:39 > 0:18:45'So, that service charge isn't all bad news, but it's still £375 per month.
0:18:45 > 0:18:51'And you'd need to cover this on any rental deal for the flat. But how much could it rent out for?'
0:18:51 > 0:18:55I would be able to rent this out for £330 a week.
0:18:55 > 0:19:01'Deducting the service charge, that could be £12,500 income a year. But how much could it sell for?'
0:19:01 > 0:19:05Once renovated, in the area of £350,000.
0:19:08 > 0:19:12I walk into this property and see a blank canvas.
0:19:12 > 0:19:16A prime London flat that you can stamp your own personality on.
0:19:16 > 0:19:21However, before getting carried away you must remember this property
0:19:21 > 0:19:25is unmortgageable, and so it's one for the cash-rich only, I'm afraid.
0:19:25 > 0:19:29Let's find out who that was as we go to auction.
0:19:32 > 0:19:37Lot 102, which is 81 Rossmore Court, Park Road, London NW1.
0:19:37 > 0:19:39What will you bid me?
0:19:39 > 0:19:42275. 280. 285.
0:19:42 > 0:19:44290.
0:19:44 > 0:19:48295. 300.
0:19:48 > 0:19:49300.
0:19:49 > 0:19:51305 anywhere else? 305. 310?
0:19:53 > 0:19:56310. 315.
0:19:56 > 0:19:59OK. 310 I have. 315 anywhere else?
0:20:01 > 0:20:04For the first time at 310...
0:20:04 > 0:20:08For the second time at 310. On the phone, Tom? Richard?
0:20:08 > 0:20:11I'll take your two and a half, then. 312 and a half. 315.
0:20:11 > 0:20:14312 and a half on the front row.
0:20:14 > 0:20:16315 anywhere else?
0:20:16 > 0:20:18For the first time at 312 and a half...
0:20:18 > 0:20:20The second time at 312 and a half...
0:20:20 > 0:20:24For the third and final time at £312,500 - are we all done?
0:20:24 > 0:20:28Very close, but not quite there. Come and see us.
0:20:28 > 0:20:34'That final bid was £1,000 short of the reserve price, so the property went unsold on the day.
0:20:35 > 0:20:39'But, after some post auction negotiations the vendor did
0:20:39 > 0:20:45'eventually sell to a property developing business for £290,000.
0:20:45 > 0:20:49'Alicia is the interior designer taking on this project.
0:20:49 > 0:20:51'Let's hear about her plans.'
0:20:52 > 0:20:54Alicia, it's lovely to meet you.
0:20:54 > 0:20:59Now, this is an interesting one because this property didn't sell at auction, did it?
0:20:59 > 0:21:04- So what's the story behind you buying it?- Well, the buyer didn't buy it in auction.
0:21:04 > 0:21:08It didn't sell, so they went after the auction and...
0:21:08 > 0:21:11- and sorted it out between them. - So who is the buyer?
0:21:11 > 0:21:19The buyer's my husband, and I act on behalf of him and his company,
0:21:19 > 0:21:24which is a property company, property developing company, and I do a lot of things up for them.
0:21:24 > 0:21:27Oh! So, what's your role going to be in this?
0:21:27 > 0:21:32Well, I will be involved from the beginning, designing
0:21:32 > 0:21:37everything, buying everything and being on top of the builders,
0:21:37 > 0:21:44project managing everything, and then give the keys back and erm...well, hopefully sell it for much more!
0:21:44 > 0:21:49'Originally from Poland, Alicia spent most of her life living in Germany,
0:21:49 > 0:21:52'but has been in the UK for the past seven years.
0:21:52 > 0:21:59'She's renovated several properties already, and reckons the £290,000 is pretty good value.'
0:22:02 > 0:22:04I think it's a very, very good price.
0:22:04 > 0:22:06Very, very happy obviously for...
0:22:06 > 0:22:08for my client.
0:22:08 > 0:22:14And er...yeah, I think we're going to be able to make some money out of this one.
0:22:14 > 0:22:18- What's it going to be like having your husband as your client? - It's pretty straightforward.
0:22:18 > 0:22:21He gives me the keys and leaves me alone the whole time,
0:22:21 > 0:22:25and I give him the keys when it's ready and it's all done.
0:22:26 > 0:22:31'Alicia makes it sound so easy, although her plans here are straightforward.
0:22:31 > 0:22:38'She has a £15,000 budget, and one month to refurbish the entire flat, adding a new kitchen and bathroom.
0:22:38 > 0:22:45'She's aiming for a striking and contemporary feel, and has the right experience to get that effect.'
0:22:45 > 0:22:49I did a postgraduate degree in interior design.
0:22:49 > 0:22:55After I have done one property up, which we used to live in, and I did it up and we sold it and we made
0:22:55 > 0:22:59quite a lot of money on this and I really, really enjoyed it, so I did...
0:22:59 > 0:23:07did the course and started doing, and one after the other gained more and more and more experience, obviously.
0:23:07 > 0:23:11I was in a creative industry before anyway, so it's...
0:23:11 > 0:23:13That's how it happened.
0:23:14 > 0:23:19'Alicia used to be a make-up artist, so you could say she aims to do a makeover.
0:23:19 > 0:23:24'It seems a natural progression from transforming people to making properties look stylish, but in
0:23:24 > 0:23:32'this case she knows that achieving the right look means more than just applying the right colours.'
0:23:32 > 0:23:39I think about the flow of the property, how it goes from room to room, and
0:23:39 > 0:23:44I always think about how it would be to live here and how, you know, to make it look really beautiful and
0:23:44 > 0:23:50comfortable, and make it work, because design is not just about the looks, it's about function as well.
0:23:50 > 0:23:57'But in the end, it's all about getting this flat to pay its way, so with that £290,000
0:23:57 > 0:24:05'purchase price, and £15,000 budget taking the proposed spend to 305,000, will the figures add up?'
0:24:07 > 0:24:10So how much are you going to want to market this for?
0:24:10 > 0:24:15They will be looking to sell it for around 375.
0:24:15 > 0:24:18If they can get
0:24:18 > 0:24:22a rent of 400 a week, they'd probably keep it because it fits in
0:24:22 > 0:24:27with their rental portfolio and it would be good for them to keep it.
0:24:27 > 0:24:31- Are you excited about getting started now? - Very excited, yes. Very excited.
0:24:31 > 0:24:37It's always... It's always great to get in here with the hammer and just
0:24:37 > 0:24:42get cracking. Because it's over so quickly, so, you know...
0:24:42 > 0:24:46Alicia, it's been great meeting you. I'm so excited! Good luck.
0:24:46 > 0:24:49I hope I'm not going to disappoint you.
0:24:49 > 0:24:55Alicia is a stylish lady, and she knows what she wants and she's got vision for this place.
0:24:55 > 0:24:58I can't wait to see the transformation.
0:24:58 > 0:25:05Now, the big question is, will they sell for 375,000 or will they end up renting for 400 quid a week?
0:25:05 > 0:25:09You can join us, and find out what happens, later on in the show.
0:25:10 > 0:25:14'Coming up, I'll be shining more light on this Derby property.'
0:25:14 > 0:25:16Compared to the other rooms this one is very dingy.
0:25:16 > 0:25:19That's probably all this vegetation!
0:25:20 > 0:25:24'Have the renovations at this London flat disturbed the neighbours?'
0:25:24 > 0:25:30There's a lot of people live here, with dust and noise, so... this was really the challenge.
0:25:32 > 0:25:37'But first, the buyer of this house has some advice.'
0:25:37 > 0:25:39Don't do it! It's madness!
0:25:42 > 0:25:46'This two-bedroomed house in Alphington, Devon,
0:25:46 > 0:25:52'was bought by landscaper and builder Ian for £133,500.
0:25:52 > 0:25:57'For him developing properties is part hobby and part gamble.
0:25:57 > 0:26:03'He's already renovated nine properties, but is still wondering what the winning formula is.'
0:26:03 > 0:26:05You're not sure whether it'll be a success or a failure?
0:26:05 > 0:26:07- Oh.- Oh!
0:26:08 > 0:26:10Because life's a gamble, isn't it?
0:26:10 > 0:26:17We're all a long time dead, so we've got to make sure that you take these gambles and go for it.
0:26:17 > 0:26:20'Ian seems to have a positive spirit about tackling the problems ahead.
0:26:20 > 0:26:26'Although there's nothing structurally wrong with the house, its odd ground floor layout
0:26:26 > 0:26:29'didn't make it very user-friendly, but something told me
0:26:29 > 0:26:35'that whatever Ian did he would enjoy the ride, and hopefully luck WOULD be on his side.
0:26:37 > 0:26:41'Well, it's been six months and Ian's been busy.
0:26:41 > 0:26:45'There's a new front door and renovated porch.
0:26:47 > 0:26:50'And the living room has been completely overhauled.
0:26:55 > 0:27:01'Step into that kitchen, and you can see where Ian's spent most of his energy.'
0:27:02 > 0:27:06Right, well, this is the kitchen and this is the room that we did the most
0:27:06 > 0:27:12work in, because everything had to be replastered, reskimmed, repainted.
0:27:12 > 0:27:14Vented cooker, integrated fridge,
0:27:14 > 0:27:19integrated freezer, integrated washing machine...
0:27:19 > 0:27:23All the rewiring, all the sockets - there's 16 sockets in the kitchen.
0:27:23 > 0:27:28The cost of the kitchen I was very pleased with, because it worked out about £4,000
0:27:28 > 0:27:33for the kitchen, the integrated units, all the appliances... Everything.
0:27:33 > 0:27:35I think the kitchen's worked out very well.
0:27:35 > 0:27:40I'm very pleased with it, and it couldn't have gone any better than anticipated.
0:27:42 > 0:27:46'As for the rest of the house, Ian has used fresh, simple colours to
0:27:46 > 0:27:51'create a light airy effect to appeal to both buyers and renters alike.
0:27:53 > 0:28:00'The house has been completely replumbed, and a new bathroom suite installed, again in neutral colours.
0:28:00 > 0:28:05'But no-one could be neutral about that awkward third bedroom arrangement.'
0:28:05 > 0:28:09Well, this room was just a long, elongated room with
0:28:09 > 0:28:11nothing at all through here,
0:28:11 > 0:28:15so we built on this sort of piece here, put in a downstairs toilet, sink,
0:28:15 > 0:28:18mirrors, all the rest of it, heaters in there.
0:28:18 > 0:28:25So it's a self-contained small flat really, if required.
0:28:25 > 0:28:32In here was the main doorway through, which has now been blocked up, so this room can now be a bedroom,
0:28:32 > 0:28:35a play room, a study, or whatever you wish.
0:28:36 > 0:28:42'I reckon the third bedroom is still a compromise, but Ian's done a pretty good job of making it work.
0:28:42 > 0:28:48'In general, do I get the impression that it was an enjoyable project for him?'
0:28:48 > 0:28:50It's been an absolute nightmare.
0:28:50 > 0:28:55When we took the five layers of wallpaper off the walls
0:28:55 > 0:28:59in the majority of the rooms, all the plaster fell off the walls.
0:28:59 > 0:29:03There was a lot of unforeseen work,
0:29:03 > 0:29:09weeks of plastering, preparation, dust and mess and dirt and rubbish
0:29:09 > 0:29:11before we could continue.
0:29:11 > 0:29:18'Well, look on the bright side, Ian, at least it's all done and dusted. And talking of bright sides...'
0:29:22 > 0:29:24Now, the conservatory I'm very pleased with.
0:29:24 > 0:29:30This roof has got argon gas in it, which retains all the heat.
0:29:30 > 0:29:36It's worth the extra money to have it done, it keeps all the heat in, and obviously the doorway over there
0:29:36 > 0:29:40has been blocked up because that was the doorway through here
0:29:40 > 0:29:44out into the garden, which is another project.
0:29:44 > 0:29:47To clear the garden there was, just to start with, there was
0:29:47 > 0:29:50three tons of rubble and hardcore and concrete,
0:29:50 > 0:29:54and that took another an extra two weeks longer than anticipated.
0:29:54 > 0:29:57But as you can see it's worked out very well.
0:29:57 > 0:30:02'Overall it's a pretty solid renovation, with the kitchen taking pride of place.
0:30:02 > 0:30:06'Because of his landscaping business, Ian and his friend Jim
0:30:06 > 0:30:09'took six months to complete the job in their spare time.
0:30:09 > 0:30:13'Did they stick to their planned £25,000 budget?'
0:30:13 > 0:30:16The budget went out the window the second week we were here.
0:30:16 > 0:30:20Couldn't care less. You've started, you've put your neck in a noose,
0:30:20 > 0:30:25you get on with it, don't moan, and you then keep your fingers crossed
0:30:25 > 0:30:30and basically just hope for the good and not the bad.
0:30:30 > 0:30:34MUSIC: "The Good, The Bad And The Ugly" by Ennio Morricone
0:30:34 > 0:30:39'Luckily, it didn't get ugly, and Ian managed to keep within the budget of 25,000.
0:30:39 > 0:30:44'Added to his £133,500 purchase price
0:30:44 > 0:30:48'that takes his spend to over £158,000 -
0:30:48 > 0:30:51'and then someone came with a fistful of dollars.'
0:30:51 > 0:30:58Well, since you were here originally and I was hoping to achieve 170,000,
0:30:58 > 0:31:03as it happened I managed to sell it for 175,000.
0:31:03 > 0:31:05'What a stroke of luck!
0:31:05 > 0:31:07'Someone called in on Ian during the renovation,
0:31:07 > 0:31:11'and offered to buy the house as long as it was completed in a fortnight.
0:31:11 > 0:31:17'This meant the sale beat the deadline on the Treasury stamp duty holiday and saved the buyer money.
0:31:17 > 0:31:25'So now, over £16,000 better off, has he learnt anything more about property renovation?'
0:31:25 > 0:31:30Have I learnt from this renovation project? Yes, of course I have.
0:31:30 > 0:31:32Don't do it! It's madness!
0:31:32 > 0:31:35'Surely there must be some good things about it?!'
0:31:35 > 0:31:40The best part of the project is today, when I hand the keys over,
0:31:40 > 0:31:44and I've got the cash in my pocket and I can walk down the road.
0:31:45 > 0:31:47'Well, Ian's a happy chappie!
0:31:47 > 0:31:49'We asked along two local estate agents
0:31:49 > 0:31:55'to take a look at the renovation, to see if he could have got a better deal.'
0:32:00 > 0:32:03The current vendor has done a very good job.
0:32:03 > 0:32:06He's left the property light and airy and kept everything neutral,
0:32:06 > 0:32:09which is a very good basis for renovation.
0:32:09 > 0:32:11I think the vendor's done a fantastic job.
0:32:11 > 0:32:13The property's light and airy,
0:32:13 > 0:32:15and will appeal to a wide-ranging market.
0:32:15 > 0:32:19'The estate agents thought if Ian took the rental option, he could have got a possible
0:32:19 > 0:32:27'£725 per month, which would have meant an approximate yield of 5.5%.
0:32:27 > 0:32:34'But he sold it for 175,000. Could he have got a better resale figure?'
0:32:34 > 0:32:40I'd put the property on the market for £185,000, in order to achieve around the £180,000 mark.
0:32:40 > 0:32:44For resale purposes I would value this property at 184,950.
0:32:44 > 0:32:51I think that's very good, and I'm very pleased with what I got because no agents WERE used.
0:32:51 > 0:32:55Saved a lot of money there, and it was a quick sale,
0:32:55 > 0:33:00two weeks from seeing the property to completion. So I'm very pleased.
0:33:00 > 0:33:03'It definitely paid for Ian to follow his own path.
0:33:03 > 0:33:09'He can take away a pre-tax profit of £16,500. Not bad for a hobby!
0:33:09 > 0:33:13'Is he thinking about gambling on any more properties?'
0:33:15 > 0:33:20Future plans in the property world?
0:33:20 > 0:33:21Will I ever do it again?
0:33:21 > 0:33:24No today - yes tomorrow.
0:33:24 > 0:33:29'In that case, we'll keep an eye out for Ian at future auctions!'
0:33:32 > 0:33:39I'm in Mickleover in Derbyshire, just a few miles outside Derby city centre.
0:33:39 > 0:33:42It's known rather exclusively as "The Village".
0:33:42 > 0:33:46It's a very desirable place to be, and interestingly enough property prices here
0:33:46 > 0:33:51have stood up fairly well in recent times, and they are some of the highest in the county.
0:33:51 > 0:33:55You can see why. Tree-lined streets, a mixture of houses...
0:33:55 > 0:33:57It's a good start.
0:33:57 > 0:34:02'As I said, this is a very desirable area, but I'm a little worried about that main road.
0:34:02 > 0:34:06'It's useful for commuting, but could be rather noisy.
0:34:06 > 0:34:08MUSIC: "Open Road" by Bryan Adams
0:34:12 > 0:34:15So, what was on offer here in Mickleover?
0:34:15 > 0:34:21Well, it's a property on Chain Lane, just off that main road that links Mickleover with Littleover.
0:34:21 > 0:34:27Three-bedroomed semidetached, had a guide price of 85,000 quid...
0:34:27 > 0:34:28That's it.
0:34:28 > 0:34:32Don't look too bad from the outside!
0:34:32 > 0:34:35'Well, apart from that half- rendered exterior.
0:34:35 > 0:34:40'I'm not a big fan, but would be tempted to leave it in case there was worse underneath.
0:34:40 > 0:34:46'I wonder if I'd be rattled by anything else inside this Chain Lane property?'
0:34:46 > 0:34:49So what's in store behind the door?
0:34:49 > 0:34:51Actually, it looks all right.
0:34:51 > 0:34:54Nice light and airy entrance hall here.
0:34:54 > 0:34:58I mean, no surprises on the layout, very 1930s semi kind of style.
0:34:58 > 0:35:01Corridor here, stairs up to the bedrooms there.
0:35:01 > 0:35:03A front sitting room -
0:35:03 > 0:35:06nice that you've got the open fire, you could make a feature of that.
0:35:06 > 0:35:09Now, that is one area that looks like it needs some work,
0:35:09 > 0:35:11the kitchen. It's not a huge space.
0:35:11 > 0:35:13Not a lot of things you could do with that.
0:35:13 > 0:35:15Certainly you'd need new units.
0:35:15 > 0:35:19What you could do in terms of grabbing space from other rooms...
0:35:19 > 0:35:21it needs thinking about, that.
0:35:21 > 0:35:23One nice thing - under-stairs cupboard,
0:35:23 > 0:35:26although the electrics look like they need a bit of attention.
0:35:26 > 0:35:28Through to the rear sitting room.
0:35:28 > 0:35:32Gas fire there, but there's probably space for a real fire as well.
0:35:32 > 0:35:35But compared to the other rooms this one very dark, dingy.
0:35:35 > 0:35:39That's probably something to do with all this vegetation growing in from the garden!
0:35:39 > 0:35:42What I'd want to see though there is a set of, I don't know,
0:35:42 > 0:35:44patio doors, maybe French doors,
0:35:44 > 0:35:48bringing the garden into the house, lightening up the room.
0:35:48 > 0:35:51That said, all in all, a great start.
0:35:51 > 0:35:54MUSIC: "Cruel Garden" by The Stranglers
0:35:55 > 0:36:01'It's such a shame the garden is blocking out not only light, but the view as well.
0:36:01 > 0:36:04'I went out the back, to see what could be done to clear it.'
0:36:04 > 0:36:07Well, at the rear of the property, a surprise.
0:36:07 > 0:36:12A garden. Not just any garden - I mean a really considerably-sized garden!
0:36:12 > 0:36:15Now, that could be a good thing or a bad thing.
0:36:15 > 0:36:20If you're renting out the property, then having this kind of area might not be a good thing because
0:36:20 > 0:36:22whoever rents it is going to have to look after it.
0:36:22 > 0:36:26Because when I say it's a sizeable garden...it's big.
0:36:28 > 0:36:33Really, really big! It must be 150 feet, maybe 50 metres...?
0:36:33 > 0:36:37Wow, you could almost land a light aircraft here!
0:36:37 > 0:36:41'If this garden was mine, I'd certainly be tidying it up
0:36:41 > 0:36:45'and inviting all my friends and family round for summer parties.
0:36:45 > 0:36:49'In fact there's plenty of room here for the whole village!'
0:36:51 > 0:36:54So upstairs a fairly standard layout, but before I show you that,
0:36:54 > 0:36:58just point out these spindles of the banister here. Far too wide -
0:36:58 > 0:37:03if you were renting this place out or if you had small children yourself you'd want to put some
0:37:03 > 0:37:08extra rails in there just to stop small people falling through, for certain. What have we got?
0:37:08 > 0:37:11Sort of smallish room there, then two good-sized doubles.
0:37:11 > 0:37:13Great to see that there's a bathroom and a loo up here.
0:37:13 > 0:37:16I mean, all in all, it really works as a house.
0:37:16 > 0:37:19It's a fairly standard layout, but...it's worked for years
0:37:19 > 0:37:21and that's why it is the way it is.
0:37:21 > 0:37:23The only thing I would think about changing
0:37:23 > 0:37:26is the central heating system because basically there isn't any.
0:37:26 > 0:37:29Storage radiators, obviously very expensive to run.
0:37:29 > 0:37:32Stick in a new green combination boiler, you're going to save
0:37:32 > 0:37:34the environment and yourself lots of money.
0:37:34 > 0:37:37All in all though, great house.
0:37:38 > 0:37:41'The rooms upstairs are a good size and have loads of potential,
0:37:41 > 0:37:44'although the decor might need a little calming down!
0:37:44 > 0:37:48MUSIC: "She's A Rainbow" by the Rolling Stones
0:37:49 > 0:37:52'In fact, the whole place should be decorated throughout,
0:37:52 > 0:37:56'but there's no major structural work necessary.
0:37:56 > 0:37:59'Although it could do with a more muted bathroom suite!
0:38:04 > 0:38:08'What would a local estate agent make of this property?
0:38:08 > 0:38:11'I invited one to take a look.'
0:38:11 > 0:38:16Clearly the property needs a lot of refurbishment internally,
0:38:16 > 0:38:21and I would raise a question mark over possible structural defects externally.
0:38:21 > 0:38:24Looking from the outside I've noticed a few tiles
0:38:24 > 0:38:29that seem to have slipped, some cracks in the walls and possible issues with the pointing.
0:38:30 > 0:38:37'So, who does he think would be attracted to this place once done up and how much should it cost them?'
0:38:37 > 0:38:43This property would undoubtedly appeal to a family,
0:38:43 > 0:38:45and for rental I would imagine you could get 550 per month.
0:38:45 > 0:38:49'What if the new owner decided to resell?'
0:38:49 > 0:38:53Once the property's been renovated, being in the catchment area of Littleover Community School
0:38:53 > 0:38:57I would imagine that you could achieve £155,000.
0:38:58 > 0:39:00Well, there you have it.
0:39:00 > 0:39:02All in all, a terrific property.
0:39:02 > 0:39:05Yes, you'd have to spend a bit of money to get it up to scratch,
0:39:05 > 0:39:08but that money I think would be very, very well spent.
0:39:08 > 0:39:13Good area, amazing garden. I mean, imagine growing your vegetables down the bottom there - superb!
0:39:13 > 0:39:16Let's see who went for it when it went under the hammer.
0:39:16 > 0:39:20Lot 62, 61 Chain Lane in Mickleover.
0:39:20 > 0:39:2196.
0:39:21 > 0:39:2396,000.
0:39:23 > 0:39:2497 somewhere else?
0:39:25 > 0:39:28At 97 I've two of you together. 98...
0:39:28 > 0:39:3299 on the front row. 100. 110. 115.
0:39:32 > 0:39:35And a half. 116.
0:39:35 > 0:39:37117.
0:39:37 > 0:39:39..500. 119?
0:39:40 > 0:39:43119...500.
0:39:43 > 0:39:45120?
0:39:45 > 0:39:49All done? 500, thank you. ..21?
0:39:49 > 0:39:54121. 121 and a half? 121 and a half.
0:39:54 > 0:39:56122, sir? 122.
0:39:56 > 0:39:58No?
0:39:58 > 0:40:03£122,000. 500 somewhere else.
0:40:03 > 0:40:06At £122,000 then, for the first time...
0:40:06 > 0:40:10500. 122 and a half. 123.
0:40:10 > 0:40:13123 and a half.
0:40:13 > 0:40:14124.
0:40:14 > 0:40:16124,000. Five?
0:40:16 > 0:40:18500.
0:40:18 > 0:40:20126.
0:40:20 > 0:40:22126 and a half.
0:40:22 > 0:40:2527? 127.
0:40:26 > 0:40:29No? 127...
0:40:29 > 0:40:32Once, twice, third and last time...
0:40:33 > 0:40:35Sold at 127. It's yours, sir, thank you.
0:40:35 > 0:40:41'And the successful bid of £127,000 came from Tarsum.
0:40:41 > 0:40:45'Tarsum lives in Derby, and works as a plumber and central heating engineer.
0:40:45 > 0:40:50'He was bidding at auction on behalf of his daughter Indie and her husband.
0:40:50 > 0:40:53MUSIC: "Kids" by Robbie Williams and Kylie Minogue
0:40:53 > 0:40:56'They live in London with their baby daughter.
0:40:56 > 0:41:00'This is the first of what they hope will be many investment properties.'
0:41:00 > 0:41:03Indie, Tarsum, lovely to meet you. Congratulations.
0:41:03 > 0:41:05- Thank you.- So how was the auction?
0:41:05 > 0:41:07A bit nerve-wracking.
0:41:07 > 0:41:14Of course, it wasn't my money, it was their money I was spending, and I've not been to an auction before.
0:41:14 > 0:41:19I have been for cars, but never for a property. Because it's the biggest investment in your life,
0:41:19 > 0:41:24and you can make a mistake and there's big money at stake.
0:41:24 > 0:41:26So you'd agreed a budget beforehand, had you?
0:41:26 > 0:41:28- We had, but we had to go over it. - Yeah.
0:41:28 > 0:41:31- On the spur of the moment. - What was your budget?
0:41:31 > 0:41:34- How much was it? A hundred and...- 105 to 110.
0:41:35 > 0:41:38'110,000!
0:41:38 > 0:41:41'Well, they've gone over that by £17,000.
0:41:41 > 0:41:48'Their final bid was 127 grand, so they must have really wanted this property.'
0:41:48 > 0:41:52- What was it about it that you liked? - There's the least amount of work to be done.
0:41:52 > 0:41:56Some of the properties we saw, there was a lot more work
0:41:56 > 0:41:58to be done to make them liveable.
0:41:58 > 0:42:01This one's a sort of nice area,
0:42:01 > 0:42:03so it's all...
0:42:03 > 0:42:05Either renting or selling it's a good point.
0:42:05 > 0:42:10- Right. So did you see it before the auction?- No, only on the internet.
0:42:10 > 0:42:14- But you trusted your dad. - Yeah, totally.
0:42:14 > 0:42:18'As I say time after time on this show, bidding blind is
0:42:18 > 0:42:24'a very risky thing to do, but at least Indie's father HAD viewed it and they WERE lucky this time.
0:42:24 > 0:42:28'The work is all mainly cosmetic.'
0:42:28 > 0:42:31- What are you going to do to the place?- We're going to modernise it for a start.
0:42:31 > 0:42:37We're going to put the heating system in which is nonexistent. Well, outdated.
0:42:37 > 0:42:40And...rewiring,
0:42:40 > 0:42:43and also new bathroom, new kitchen,
0:42:43 > 0:42:48and then basically carpet it and decorate it.
0:42:48 > 0:42:52We may put some patio doors at the back.
0:42:52 > 0:42:55At the front we've got to make a drive for parking because we've got
0:42:55 > 0:42:59- no off-road parking at the moment. - That's a very good idea.- Yeah.
0:43:00 > 0:43:06'A drive at the front will make the property much more appealing to potential buyers or tenants.
0:43:06 > 0:43:10'Most of the work is going to be done by Tarsum and his team,
0:43:10 > 0:43:14'but he will need to get some contractors in for that drive.
0:43:14 > 0:43:19'Decorating the house will be down to Indie and her husband, who've estimated
0:43:19 > 0:43:27'around £15,000 for the work. But they are still undecided what to do with the property after that.'
0:43:27 > 0:43:32So what's going to make you decide, or help you decide, between selling it or renting it out?
0:43:32 > 0:43:33It'll be the market.
0:43:33 > 0:43:37If it's going well, we'll sell it, if the houses in this area are going
0:43:37 > 0:43:42for a good price...or rental, we'll stick it on then.
0:43:42 > 0:43:45And is this something you're going to carry on and do again?
0:43:45 > 0:43:50If it all goes well, then I think my husband's definitely going to, yeah.
0:43:50 > 0:43:54Good luck with it all, and look forward to seeing how you get on.
0:43:54 > 0:43:55- Thank you.- Thank you very much.
0:43:55 > 0:43:59Well, there are some properties that you just know are going to
0:43:59 > 0:44:02be a success for whoever buys them, and this is certainly one.
0:44:02 > 0:44:08Tarsum and Indie got it at a good price and they've got the experience to turn this place around.
0:44:08 > 0:44:14What will it look like when they've done the refurbishment? You can find out later in the show.
0:44:17 > 0:44:19So, months have passed.
0:44:19 > 0:44:21Have our purchasers' plans hatched?
0:44:21 > 0:44:26Have they built up a nice little nest egg, or had rotten luck?
0:44:26 > 0:44:27Let's find out.
0:44:31 > 0:44:39'Back to London now, and the highly desirable Regent's Park area where this flat was sold for 290,000.
0:44:39 > 0:44:45'It was bought by a property developer, whose wife Alicia is an interior designer.
0:44:45 > 0:44:48'She was to project-manage the renovation.
0:44:50 > 0:44:54'But with an original budget of only 15,000,
0:44:54 > 0:44:56'would Alicia rise to the challenge
0:44:56 > 0:45:00'and elevate this seventh-storey property to a higher value?
0:45:03 > 0:45:06'It's been two months now, and we've returned to see
0:45:06 > 0:45:11'if Alicia's given this flat the high-life makeover it deserves.
0:45:14 > 0:45:18'Well, that tired run-down living room has given way to a sleek
0:45:18 > 0:45:24'contemporary lounge, with wooden flooring and tasteful lighting.
0:45:26 > 0:45:32'While the bathroom is now ultra-modern, with stylish fittings.
0:45:35 > 0:45:39'Down the corridor, a new kitchen has been installed.
0:45:44 > 0:45:50'And that just leaves the bedroom, which was renovated in the same style as the lounge.'
0:45:54 > 0:45:59Well, in here first of all we fitted bespoke wardrobes,
0:45:59 > 0:46:03that were spray-painted in the colour of the walls.
0:46:03 > 0:46:07In between I created the space which would serve as a bedside table -
0:46:07 > 0:46:12well, you can't fit bedside tables on either side of the bed.
0:46:12 > 0:46:15And this is finished in polished plaster,
0:46:15 > 0:46:20in a nice contrasting but still harmonious colour to the walls.
0:46:20 > 0:46:23And we've got this nice light feature,
0:46:23 > 0:46:28and lovely reading lights, LED high-quality reading lights.
0:46:28 > 0:46:30And erm...yeah, the bed will go nicely in the middle
0:46:30 > 0:46:34once, you know, once everything is done and I can dress it.
0:46:34 > 0:46:37And I think this is a really good use of the space.
0:46:38 > 0:46:41'The flat wasn't small, but its options were limited.
0:46:41 > 0:46:46'However, Alicia found ways of making the best of what she had to work with.'
0:46:46 > 0:46:52Well, here we opened up the doorway, which made it look more spacious,
0:46:52 > 0:46:56and we added feature walls in the lounge and in the hallway
0:46:56 > 0:46:59which adds to the flow of the whole flat.
0:46:59 > 0:47:02Created a nice lighting scheme -
0:47:02 > 0:47:07LED lighting around the ceiling and alcoves with some spotlights.
0:47:09 > 0:47:12'By using soft tones and lighting,
0:47:12 > 0:47:15'Alicia has managed to create a sense of space throughout.
0:47:15 > 0:47:19'Has the final product turned out as she planned?'
0:47:19 > 0:47:25It was very enjoyable to see my vision that was always from the beginning in my head...
0:47:25 > 0:47:30to see it coming to what it is now.
0:47:31 > 0:47:35'Getting there didn't pose Alicia too many problems.
0:47:35 > 0:47:40'With the flat totally replastered, rewired and new walnut flooring laid
0:47:40 > 0:47:43'the conversion now offers quality high living.
0:47:44 > 0:47:47'But that was also one of its few drawbacks.'
0:47:48 > 0:47:50The only challenge was really a logistic one.
0:47:50 > 0:47:53It's the seventh floor in the block.
0:47:53 > 0:47:59There's a tiny little lift that fits two people, so that was really the biggest challenge.
0:47:59 > 0:48:01And to keep everybody happy -
0:48:01 > 0:48:07you know, there's a lot of people live here, so with dust and noise this was really the challenge.
0:48:08 > 0:48:13'On a budget of just £15,000, it must have been a bigger challenge
0:48:13 > 0:48:16'to try and create a flat to this standard of finish.'
0:48:17 > 0:48:20Well, the 15,000 was...
0:48:20 > 0:48:22was a realistic budget,
0:48:22 > 0:48:24but the budget was then increased
0:48:24 > 0:48:30to 25 to make more out of it and then get more back, so I spent all of it.
0:48:31 > 0:48:38There is maybe another £1,000 to spend here and there, and then obviously my fee on top of that.
0:48:39 > 0:48:42'Seeing the final product I reckon Alicia's earned it,
0:48:42 > 0:48:46'but on top of that 290,000 purchase price
0:48:46 > 0:48:51'the total so far will be £316,000, plus her fee.
0:48:52 > 0:48:57'3,000 was spent on an ultra-modern stylish bathroom, and a further
0:48:57 > 0:49:01'£7,000 on that sleek and functional kitchen
0:49:01 > 0:49:04'with composite worktops and integrated units.
0:49:04 > 0:49:09'Overall, she's created a modern, contemporary flat to be proud of.
0:49:10 > 0:49:13Did her clients feel the same way?
0:49:13 > 0:49:15He wants to move in!
0:49:15 > 0:49:19I think yeah, he's very, very pleased.
0:49:19 > 0:49:22You know. All of them are very, very pleased with it, with the look.
0:49:22 > 0:49:26And very surprised as well, because when you walk in it's...
0:49:26 > 0:49:31You don't really expect the sort of look and finish, so they're very, very happy.
0:49:31 > 0:49:37'But with plans to sell, they'll be happier if they can make a good profit on it.
0:49:40 > 0:49:44'Bearing in mind that total spend of 316,000,
0:49:44 > 0:49:46'we asked two local estate agents along
0:49:46 > 0:49:51'to see what they thought Alicia's renovation.'
0:49:51 > 0:49:54I think the changes made have been absolutely brilliant,
0:49:54 > 0:49:57and the quality of decor and fittings
0:49:57 > 0:50:01is above, far above, the average standard in the block.
0:50:01 > 0:50:05My first impressions of the apartment are that it's very light,
0:50:05 > 0:50:08and has been refurbished to a very high standard.
0:50:09 > 0:50:16'But what would THEY pay for this flat? Remember, the total outlay so far is £316,000.
0:50:16 > 0:50:20'What could the resale value be?'
0:50:20 > 0:50:23I would put this property on the market at £365,000.
0:50:23 > 0:50:27I would place this property on the market at £425,000.
0:50:27 > 0:50:31'Now, that's a £60,000 difference in valuations.'
0:50:31 > 0:50:36It doesn't really surprise me. I think it is quite a difficult flat
0:50:36 > 0:50:39to value because it is a very high standard,
0:50:39 > 0:50:43so we're hoping for the four in front. Time will tell.
0:50:44 > 0:50:48'Whatever the flat sells for, Alicia's done an impressive job
0:50:48 > 0:50:51'of refurbishing and bringing it back to life.
0:50:51 > 0:50:56'It's something she's currently doing on several other properties.'
0:50:57 > 0:51:00I love my work as an interior designer, and I would...
0:51:00 > 0:51:02wouldn't want to do anything else, really.
0:51:02 > 0:51:07'The chances are Alicia will be busy for a long time ahead.'
0:51:13 > 0:51:19'We're back at this three-bedroomed semidetached house in Mickleover in Derby.
0:51:19 > 0:51:27'It sold at auction for £127,000 to Tarsum, on behalf of his daughter and son-in-law.
0:51:27 > 0:51:30'But they wanted it as their first property investment,
0:51:30 > 0:51:32'and entrusted him with the bidding.'
0:51:32 > 0:51:33It wasn't my money,
0:51:33 > 0:51:38it was their money I was spending, and I've not been to auction before.
0:51:38 > 0:51:41'Unfortunately his daughter Indie couldn't make it from
0:51:41 > 0:51:47'her family home in London, so we asked Tarsum to show us what's been done here.
0:51:48 > 0:51:52'Well, since the last time not only has there been a changing climate,
0:51:52 > 0:51:56'but the inside's gone through some alterations as well!
0:51:56 > 0:52:00'Tarsum's completely replastered throughout.
0:52:00 > 0:52:06'He's recarpeted and repainted too, making everything fresh and bright.
0:52:06 > 0:52:08'All the old fireplaces have been ripped out
0:52:08 > 0:52:11'and replaced with modern new ones.
0:52:11 > 0:52:13'He's rejigged the bathroom layout,
0:52:13 > 0:52:18'putting the bath on one side to make it less cluttered.
0:52:18 > 0:52:22'In fact, they've now even got a second toilet downstairs.
0:52:22 > 0:52:25'Whilst Tarsum was replacing the old electrics,
0:52:25 > 0:52:27'he decided to put in a loo in the cupboard.
0:52:27 > 0:52:31'But the biggest change to the house has been in the kitchen.'
0:52:33 > 0:52:36The kitchen was very unpracticable,
0:52:37 > 0:52:42and there was a door here to the garden and there was also a door here on the left into the house,
0:52:42 > 0:52:47which made the kitchen not very usable. We couldn't put any appliances here.
0:52:47 > 0:52:51So we closed that door, so we could use the full width of that wall,
0:52:51 > 0:52:55closed this door, we could use the full width of that,
0:52:55 > 0:52:58opened this area into the dining area, so we could get a full...
0:52:58 > 0:53:00a reasonable-sized kitchen now.
0:53:01 > 0:53:04'And he's not just been busy on the inside.
0:53:04 > 0:53:08'Tarsum employed some builders to create a new driveway at the front.
0:53:08 > 0:53:12'Although you may not be able to see it for the snow, it is there,
0:53:12 > 0:53:16'and will add huge appeal to any potential tenant or buyer.
0:53:16 > 0:53:19'Some of the work isn't quite finished.
0:53:19 > 0:53:21'There are doors to go on the kitchen units,
0:53:21 > 0:53:24'and it's SNOW joke that the garden has huge potential,
0:53:24 > 0:53:28'but they're going to deal with that in warmer weather.'
0:53:28 > 0:53:31The garden we're going to divide into three areas.
0:53:31 > 0:53:39The first lot is going to be slabbed, which will be like for a kids' play room or sitting out there.
0:53:39 > 0:53:45Then it's going... A third of it's going to be lawned, and then the last bit's probably going to be left wild
0:53:45 > 0:53:49for the insects to play and wildlife to grow.
0:53:49 > 0:53:53'Tarsum has also added some fantastic patio doors,
0:53:53 > 0:53:56'opening the living room out into the garden.
0:53:56 > 0:54:02'But with all this work, how did they get on with their original budget of 20,000 to 30,000?'
0:54:02 > 0:54:04The budget we thought...
0:54:04 > 0:54:09We were thinking really into the clouds when we said 20 to 30.
0:54:09 > 0:54:12We managed to get it done for less than 15,
0:54:12 > 0:54:17so we're happy. My daughter and son-in-law are happy.
0:54:17 > 0:54:24'So, with that revised £15,000 budget plus the £127,000 they paid at auction,
0:54:24 > 0:54:28'that's a total spend of £142,000.
0:54:28 > 0:54:30'How much value has Tarsum added?
0:54:32 > 0:54:36'We asked along two local estate agents, to find out.'
0:54:41 > 0:54:45I saw the property before, it was in a little bit of a mess, but it looks good now.
0:54:45 > 0:54:48Nicely finished, nice new carpets, nice kitchen. Looking good.
0:54:48 > 0:54:52The way the kitchen and dining room are laid out, I think it works well.
0:54:52 > 0:54:57One area flows into the other, but you've still got the definition of rooms.
0:54:57 > 0:55:01The garden's the big draw for the family. It's great for children to play in,
0:55:01 > 0:55:06and with it being linked to the kitchen with the patio doors it makes it again a more usable space.
0:55:07 > 0:55:12'So, the renovation is getting great reviews - but down to valuations.
0:55:12 > 0:55:16'How much could it make on the resale market?'
0:55:16 > 0:55:20I think if we were to market this property we would ask £165,000.
0:55:20 > 0:55:26In terms of value this is likely to sell at the moment at £150,000, £155,000.
0:55:26 > 0:55:32We were expecting something like 190, so that I think was low down.
0:55:32 > 0:55:35Quite a low figure than what we expected.
0:55:36 > 0:55:42'It may not be quite what Tarsum was expecting, but with the total spend at 142,000
0:55:42 > 0:55:50'those estimates still mean between £8,000 and £23,000 pre-tax profit, minus the usual deductions.
0:55:50 > 0:55:53'So, what about the rental valuation?'
0:55:55 > 0:55:59Rental-wise this would go very well, at £600 per calendar month.
0:55:59 > 0:56:02I think £575 per calendar month could be achieved.
0:56:02 > 0:56:04I think we can achieve better.
0:56:04 > 0:56:09We can achieve better than 575, or even 600.
0:56:09 > 0:56:13We're looking for something like £800 or thereabout,
0:56:13 > 0:56:15so that would make a good figure.
0:56:17 > 0:56:21'So again, the price isn't exactly what Tarsum and his daughter were after.
0:56:21 > 0:56:26'They're putting plans for a resale on hold until the property market gets stronger.
0:56:26 > 0:56:31'Meanwhile, they're trying to rent it out at the higher price for a while.
0:56:31 > 0:56:35'Despite the low estimates, Tarsum's really enjoyed the experience,
0:56:35 > 0:56:39'especially knowing who it was all for.'
0:56:39 > 0:56:43Well, I enjoy working, and especially when you're doing something for your family,
0:56:43 > 0:56:49it's more enjoyment because you know the rewards are going to be there for the family. So, loved it.
0:56:52 > 0:56:57We hope we've been of help today, guiding you through the property maze and perhaps inspiring you.
0:56:57 > 0:57:02- So join us next time for more Homes Under The Hammer. - See you then.- Goodbye.
0:57:22 > 0:57:24Subtitles by Red Bee Media Ltd
0:57:24 > 0:57:26E-mail subtitling@bbc.co.uk