0:00:02 > 0:00:04Bricks and mortar has always been a solid investment.
0:00:04 > 0:00:08But in today's market, you have to be careful your purchase doesn't end up
0:00:08 > 0:00:11falling around your ears, and taking your bank balance with it.
0:00:11 > 0:00:15But if you do your research and check your finances,
0:00:15 > 0:00:17you can still find a deal in the auction rooms.
0:00:42 > 0:00:45Many buyers have their own techniques
0:00:45 > 0:00:46when it comes to bidding at auction.
0:00:46 > 0:00:49Absolutely. Some believe you should sit at the front,
0:00:49 > 0:00:52others that you should hide at the back, and others believe
0:00:52 > 0:00:56that you should just keep a low profile and bid over the phone.
0:00:56 > 0:00:59But whether it's a wink or a wave, the end result is the same.
0:00:59 > 0:01:02Let's see what people bought on today's show.
0:01:02 > 0:01:06There's a five-storey guest house in Hampshire that's huge, and it
0:01:06 > 0:01:08even has an extension out the back.
0:01:08 > 0:01:11This just makes it a huge opportunity.
0:01:11 > 0:01:14Could appearances be deceptive?
0:01:14 > 0:01:18This two-bedroom property in Kent appears to be just too perfect.
0:01:18 > 0:01:22So far, so good. I'm a bit worried.
0:01:22 > 0:01:26And this Cheshire bungalow is very compact.
0:01:26 > 0:01:28I've seen some small kitchens in my time,
0:01:28 > 0:01:30but this is absolutely microscopic!
0:01:30 > 0:01:32Look, I can touch both sides!
0:01:34 > 0:01:38All these properties have been sold at auction, and we'll find out
0:01:38 > 0:01:41who bought them and what they paid when they went under the hammer.
0:01:44 > 0:01:47# Do you want to go to the seaside?
0:01:47 > 0:01:51# I'm not trying to say that everybody wants to go
0:01:51 > 0:01:54# I fell in love at the seaside
0:01:54 > 0:01:59# I handle my charm with time and slight of hand... #
0:02:00 > 0:02:05I've come to look at a house in Southsea on the south coast.
0:02:05 > 0:02:10Located on the Solent, it's a lovely place to take in that sea air.
0:02:15 > 0:02:19Well, the clock tower is a landmark in Southsea.
0:02:19 > 0:02:24The area became a suburb of Portsmouth in 1809, and was named
0:02:24 > 0:02:29after the Southsea Castle, Henry VII's castle nearby.
0:02:29 > 0:02:32Originally, these homes were built for skilled workers,
0:02:32 > 0:02:34and the roads named after different metals.
0:02:34 > 0:02:38Here, Copper Street, nearby, Gold and Silver Street.
0:02:38 > 0:02:41Unfortunately, though, it was one of the areas of Portsmouth
0:02:41 > 0:02:44that was most bombed during the Second World War.
0:02:44 > 0:02:47Well, maybe I could consider a change of career,
0:02:47 > 0:02:49and run a guesthouse by the sea.
0:02:49 > 0:02:53Can you see me as a bit of a landlord? Ooh, a bit of Rigsby.
0:02:53 > 0:02:55Ooh, Miss Jones... Possibly.
0:02:55 > 0:02:58This would be the place to do it for sure.
0:02:58 > 0:03:01Five storeys, it's got a partially-built extension.
0:03:01 > 0:03:04It had a guide price of £230-250,000.
0:03:04 > 0:03:08Sounds like a lot of property for the money. Let's take a look inside.
0:03:10 > 0:03:13So, what's in store behind the door? Well, I don't know.
0:03:13 > 0:03:17It has definitely that feel of an old-style guest house,
0:03:17 > 0:03:20nowhere more so than here in the dining room.
0:03:20 > 0:03:23Look, the old furniture, it's even been laid out for breakfast.
0:03:23 > 0:03:28A bit spooky. It reminds me of childhood holidays for sure,
0:03:28 > 0:03:30but I guess you could just pick this up and
0:03:30 > 0:03:33run with it as a business, if that's what you wanted to do.
0:03:33 > 0:03:35Maybe there are other options.
0:03:35 > 0:03:36Let's take a look round.
0:03:41 > 0:03:44The guest house currently has six bedrooms,
0:03:44 > 0:03:47some en suite and some not.
0:03:47 > 0:03:49The number of bedrooms could increase
0:03:49 > 0:03:52when that partially-built two-storey extension is finished.
0:03:52 > 0:03:55This one at the top has great views.
0:03:55 > 0:03:57You can even see the famous Portsmouth landmark,
0:03:57 > 0:04:00the Spinnaker Tower.
0:04:00 > 0:04:02Just!
0:04:02 > 0:04:05There are some period features -
0:04:05 > 0:04:08the elegant fireplaces...
0:04:09 > 0:04:12..and some beautiful and original ceiling roses.
0:04:12 > 0:04:15But the flooring and decor throughout
0:04:15 > 0:04:17could really do with an update.
0:04:26 > 0:04:29Well, upstairs it's definitely a bit of a maze.
0:04:29 > 0:04:32Lots of bedrooms, many of them with en suites.
0:04:32 > 0:04:35One option if you don't fancy yourself as a landlord
0:04:35 > 0:04:37could be to convert this back into a dwelling.
0:04:37 > 0:04:39You certainly have a lot of rooms,
0:04:39 > 0:04:42although you wouldn't need this many en suites, surely.
0:04:42 > 0:04:45Back downstairs on the ground floor,
0:04:45 > 0:04:48the rather ramshackle kitchen is packed to the rafters after
0:04:48 > 0:04:51its busy days as the nerve centre of the guesthouse.
0:04:51 > 0:04:54It looks as though it could do with a face-lift.
0:04:54 > 0:04:56It's also a bit dark,
0:04:56 > 0:05:00but that's explained by something exciting that's going on outside.
0:05:01 > 0:05:04Out the back you've got a building site, hence the hard hat,
0:05:04 > 0:05:06but what you've actually got
0:05:06 > 0:05:08is an extension that's partially completed.
0:05:08 > 0:05:12Double-storey extension immediately adjoining the house,
0:05:12 > 0:05:14and then through to a single-storey extension
0:05:14 > 0:05:16which leads out onto the garden.
0:05:16 > 0:05:20So the house is big anyway. This just makes it a HUGE opportunity.
0:05:20 > 0:05:22I'm thinking house of multiple occupation,
0:05:22 > 0:05:26renting to students from Portsmouth University that's close by.
0:05:26 > 0:05:29Whatever - I think this place is a potential money-spinner.
0:05:31 > 0:05:35I know about property, but I'm not an expert on Southsea, so to hear
0:05:35 > 0:05:38about the appeal of the area and the market for it,
0:05:38 > 0:05:41I invited a local estate agent to tell me more.
0:05:42 > 0:05:46The whole city of Portsmouth, and Southsea being part of that,
0:05:46 > 0:05:48has got a real mix of property.
0:05:48 > 0:05:51There's lots and lots of older two-up, two-down terraced
0:05:51 > 0:05:55houses which were built either the for the Royal Naval personnel or
0:05:55 > 0:05:57for the dockyard workers that were supporting them,
0:05:57 > 0:06:00right the way through to some attractive Victorian villas
0:06:00 > 0:06:03which were built for the well-to-do of the era,
0:06:03 > 0:06:04and everything in between,
0:06:04 > 0:06:06so it's got a real mix of properties.
0:06:06 > 0:06:10This particular road has got quite a good mix.
0:06:10 > 0:06:11There's old and new.
0:06:11 > 0:06:14This, I believe, is the last remaining guest house
0:06:14 > 0:06:17in what was a row of very similar properties.
0:06:17 > 0:06:20This side of the road at one time was all guest houses,
0:06:20 > 0:06:21this being the last one.
0:06:21 > 0:06:24The beauty of this property is its wide appeal.
0:06:24 > 0:06:28It could be lots of different things to lots of different people.
0:06:28 > 0:06:30I think it's unlikely it'll carry on as a guest house.
0:06:30 > 0:06:33It could be a lovely family house for somebody,
0:06:33 > 0:06:34if it's converted back.
0:06:34 > 0:06:37It could be converted into apartments.
0:06:37 > 0:06:41Or perhaps, due to the proximity of Portsmouth University,
0:06:41 > 0:06:44it may well go into some form of letting use,
0:06:44 > 0:06:47perhaps on a room by room basis for students at the University.
0:06:47 > 0:06:51Although the building has planning permission for flats,
0:06:51 > 0:06:55building them wouldn't be simple, and certainly cost a lot to do.
0:06:55 > 0:06:57How much might it fetch on the market
0:06:57 > 0:06:59if converted back into a house?
0:06:59 > 0:07:03As far as resale values are concerned, I'd suggest that,
0:07:03 > 0:07:05if somebody were to finish the extension
0:07:05 > 0:07:07and do a really nice job of this,
0:07:07 > 0:07:11then a nice family home in this area would probably command a price
0:07:11 > 0:07:13of around £350,000 when it's completed.
0:07:13 > 0:07:16So depending, of course, on what you want to spend on it,
0:07:16 > 0:07:18there could be quite a profit here.
0:07:18 > 0:07:23Bearing in mind the guide price of between 230 and 250,000.
0:07:23 > 0:07:25But turning this guest house into a family home
0:07:25 > 0:07:27would be a big and expensive job.
0:07:27 > 0:07:31A cheaper option that would bring in a steady income could be
0:07:31 > 0:07:33to make it student accommodation.
0:07:33 > 0:07:35As far as rental is concerned,
0:07:35 > 0:07:38I think if it were let on a room-by-room basis, assuming
0:07:38 > 0:07:41there were eight letting rooms by the time the extension is finished,
0:07:41 > 0:07:45that ought to bring in around £2,000 a month for the property.
0:07:45 > 0:07:48That may well be limited to during university term times,
0:07:48 > 0:07:50but still a very healthy income.
0:07:50 > 0:07:54Well, rare is it indeed to find a property with so many options.
0:07:54 > 0:07:57Keep it as a guest house, split it into bedsits, perhaps,
0:07:57 > 0:08:01rent to students, turn it into a family home. I mean, wow.
0:08:01 > 0:08:04Whoever takes it on, though, there's work to be done.
0:08:04 > 0:08:07Unless they just run it as it is, as a guest house.
0:08:07 > 0:08:09Tell you what, it's not going to be me.
0:08:09 > 0:08:13I don't fancy doing all those fry-ups. Let's see who bought it.
0:08:18 > 0:08:22So now we'll go to lot 130, which is Amberly International Guest House.
0:08:22 > 0:08:26Can I say 250 on that one? 250 can I say, to start me?
0:08:26 > 0:08:28Give me 230, then? 230 I have.
0:08:28 > 0:08:30And two, now? 232 do I see?
0:08:30 > 0:08:34232. And five? 235, 235. And seven?
0:08:34 > 0:08:39237 I've got. 240, I'm back to you, then, at the back. At 240 I have.
0:08:39 > 0:08:43And two now, if you like? 242. 242.
0:08:43 > 0:08:46244? 244, yes. And six?
0:08:46 > 0:08:48246 I have. And eight?
0:08:48 > 0:08:56248. 247, if it'll make a difference to you? One more? One more, do I see?
0:08:56 > 0:08:58247, well, I squeezed that one out.
0:08:58 > 0:09:00248?
0:09:00 > 0:09:04One more to you two? 248?
0:09:04 > 0:09:08And nine? 249?
0:09:08 > 0:09:11At 248,000 in the red.
0:09:11 > 0:09:12249 against you sitting down.
0:09:12 > 0:09:16At 248, I'm going to be selling for the first time.
0:09:16 > 0:09:19£248,000 for the second time.
0:09:19 > 0:09:21Third and final time at 248, with you in the red,
0:09:21 > 0:09:24it's against you sitting down, all done?
0:09:24 > 0:09:27GAVEL BANGS You've bought it, sir.
0:09:27 > 0:09:31The successful bidders were Sam and his wife Ton.
0:09:31 > 0:09:33They're joint bosses of a building company.
0:09:33 > 0:09:36They paid £248,000 for the property,
0:09:36 > 0:09:39£2,000 less than the upper guide price.
0:09:39 > 0:09:42I went to meet them to hear about their plans.
0:09:42 > 0:09:45We've been looking for an investment for our children,
0:09:45 > 0:09:49and this was something which we thought potentially we could
0:09:49 > 0:09:52turn into apartments, or use as a letting income for the future.
0:09:52 > 0:09:56Wow. You're not thinking about you, but about your children.
0:09:56 > 0:09:57How old are your children?
0:09:57 > 0:09:58Two and seven.
0:09:58 > 0:10:01- You really are planning ahead, then. - We like to plan ahead.
0:10:01 > 0:10:03It's one of those things.
0:10:03 > 0:10:07Now is a good time to invest, as far as we see it.
0:10:07 > 0:10:10If it can stay there, generate income over the years,
0:10:10 > 0:10:13maybe they can go to university here and take it on themselves.
0:10:13 > 0:10:17# Don't mind doing it for the kids
0:10:17 > 0:10:22# So come on, jump on board
0:10:22 > 0:10:27# Take a ride, yeah... #
0:10:28 > 0:10:31Now, that's what I call real advance planning,
0:10:31 > 0:10:36providing a helping hand for their children in the very distant future.
0:10:36 > 0:10:40But what are their short-term plans for the property?
0:10:40 > 0:10:42First option, letting out to students.
0:10:42 > 0:10:44- How many bedrooms?- Seven, eight?
0:10:44 > 0:10:46So it's got to be large.
0:10:46 > 0:10:50It's going to be very large, but we've still got to work out
0:10:50 > 0:10:52to make it comfortable for them as well.
0:10:52 > 0:10:55The other option is to turn it back into a house.
0:10:55 > 0:10:57- Oh, wow!- I know. It's going to be big.
0:10:59 > 0:11:03Third option is to - well, we thought we were going to
0:11:03 > 0:11:07do it into flats, but I think that's going to probably be too expensive.
0:11:07 > 0:11:10The cost to convert it into, I think three,
0:11:10 > 0:11:14because it has planning for three apartments, and the cost is
0:11:14 > 0:11:18so large now, especially with the the building regs as they come now,
0:11:18 > 0:11:19it's going to be too much,
0:11:19 > 0:11:22and the resale value is going to be too little,
0:11:22 > 0:11:24so probably out of the question.
0:11:24 > 0:11:29The property cost 248,000, and depending on what they choose
0:11:29 > 0:11:34to do with it, they may need to spend a fair bit on it.
0:11:34 > 0:11:41We're looking in the region of 35 if we're going to turn it around significantly.
0:11:41 > 0:11:46If it's going to be for a house, we're going to increase the standard
0:11:46 > 0:11:48in regard to bathrooms and everything.
0:11:48 > 0:11:51If it's going to be student letting, then we're going to put in
0:11:51 > 0:11:54good products, but not necessarily top of the range,
0:11:54 > 0:11:56where we would do if it was going to be a house.
0:11:56 > 0:12:02No decision has yet been made, but they certainly know how much the options cost.
0:12:02 > 0:12:04Have they worked out a timescale?
0:12:04 > 0:12:06We're hoping to get it done in eight weeks.
0:12:06 > 0:12:11- Wow. Including finishing the extension?- Yeah. This extension is the easy part.
0:12:11 > 0:12:13- Is it?- As far as I can see, yeah.
0:12:13 > 0:12:15I've a funny feeling, once I start stripping things off
0:12:15 > 0:12:17things are going to start falling to bits.
0:12:17 > 0:12:21Plus we're probably going to relocate kitchens and bathrooms.
0:12:21 > 0:12:24Everything is a little dated upstairs with regards to en suites
0:12:24 > 0:12:28in bathrooms, and we're going to sort that out.
0:12:30 > 0:12:35So, Sam and Ton keeping their options open on this place, although I do get the impression
0:12:35 > 0:12:41Sam would like the final plans to be decided on sooner rather than later.
0:12:41 > 0:12:44I think they should stick with the idea of renting rooms to students.
0:12:44 > 0:12:47It's a money-making machine if they do that.
0:12:47 > 0:12:50Still, you can see what they decide later in the show.
0:12:53 > 0:12:56Bromley is London's largest borough, taking in Beckenham,
0:12:56 > 0:13:01Penge, Orpington, Biggin Hill and Chislehurst as well as Bromley itself.
0:13:01 > 0:13:06London's only 20 minutes away by train, and 35 minutes by road.
0:13:06 > 0:13:12So, if you're after a quieter suburb with excellent transport links, then Bromley could be ideal.
0:13:16 > 0:13:22Just a short walk from Bromley Station, and I'm here in Newbury Road. It's a lovely, quiet street.
0:13:22 > 0:13:24There's lots of attractive properties along here.
0:13:24 > 0:13:28I'm looking at this semi-detached, two-bedroom house today.
0:13:28 > 0:13:32The guide price? Just £200-220,000.
0:13:32 > 0:13:36That seems a very reasonable guide price for this attractive property.
0:13:36 > 0:13:39The location is fantastic as it's so close to the station.
0:13:39 > 0:13:46The 20 minute train journey into London means there will always been interest from buyers or tenants.
0:13:49 > 0:13:51OK, so, let's have a good look around.
0:13:51 > 0:13:54Well, you've got two really good sized reception rooms here and here.
0:13:54 > 0:14:01You know what, it always worries me when I walk into a property and there's nothing falling apart.
0:14:01 > 0:14:04It's all looking a bit too good to be true at the moment.
0:14:04 > 0:14:08Doesn't need decorating, the carpets are all right, you've got a lovely window here.
0:14:08 > 0:14:10A view of a pretty little courtyard garden.
0:14:10 > 0:14:13You've got the kitchen off the second reception room.
0:14:13 > 0:14:14All in really good condition.
0:14:14 > 0:14:21You have got a downstairs bathroom, though, so that could be a little bit of a negative. But so far, so good.
0:14:21 > 0:14:23I'm a bit worried.
0:14:23 > 0:14:25Let's go upstairs and check that out.
0:14:27 > 0:14:31I'm more used to subsiding walls, damp ceilings and filthy kitchens,
0:14:31 > 0:14:34but here everything looks solid, clean and in good condition.
0:14:34 > 0:14:38There's got to be something, surely?
0:14:38 > 0:14:40So, upstairs, much of the same.
0:14:40 > 0:14:43It's a mirror image of downstairs, practically.
0:14:43 > 0:14:47You've got two nice little fireplaces in each of these bedrooms.
0:14:47 > 0:14:50But through here is an incredibly small room.
0:14:50 > 0:14:53A study, a nursery, perhaps.
0:14:53 > 0:14:58It's got the boiler shoved in a corner, which, ideally, should be downstairs in the kitchen.
0:14:58 > 0:15:03You see, I would like to see a nice little en suite up here, linking from the bedroom,
0:15:03 > 0:15:08but at the end of the day you've got to think about cost, and will it be worth all that extra expenditure?
0:15:08 > 0:15:15If the buyers want to live here, it's worth considering, but probably not if they plan to rent it out.
0:15:15 > 0:15:21Mind you, having a bathroom downstairs would be handy when you come in from the garden.
0:15:21 > 0:15:24You get a really nice courtyard garden with this property.
0:15:24 > 0:15:27When you take into account the proximity of the town centre,
0:15:27 > 0:15:30it's nice to have any outside space at all.
0:15:30 > 0:15:34But you do get the feeling you're being overlooked by that.
0:15:34 > 0:15:38But the bonus, plenty of off-street parking.
0:15:42 > 0:15:44There's also off-street parking in the front garden, which is important
0:15:44 > 0:15:48as commuters using the local train station will park on the road.
0:15:48 > 0:15:52I invited a local estate agent to have a look.
0:15:53 > 0:15:58This is just around the corner from Bromley South Station, 20 minutes into central London,
0:15:58 > 0:16:00so it's ideal for the commuter.
0:16:00 > 0:16:04You've also a good primary school around the corner, which is great.
0:16:04 > 0:16:07A lot of families want to be in this area
0:16:07 > 0:16:09purely for the school and the commuter links.
0:16:09 > 0:16:13He's sold me on the area, but what about the house?
0:16:15 > 0:16:19Although it's in good condition, it's a bit soulless, a bit bland.
0:16:19 > 0:16:22The kitchen and bathroom are quite basic.
0:16:22 > 0:16:25You've got a boiler in a room upstairs which isn't ideal,
0:16:25 > 0:16:29so you should probably consider moving that downstairs.
0:16:29 > 0:16:32A percentage of the audience will say no to a downstairs bathroom,
0:16:32 > 0:16:35but by the same token there's a large amount of people
0:16:35 > 0:16:38that want three bedrooms, and that's a sacrifice you make for this price.
0:16:41 > 0:16:45I don't think it's MUCH of a sacrifice, but what would it cost to rent?
0:16:47 > 0:16:51I think in the region of £900 to £1,000 a month, realistically.
0:16:51 > 0:16:57The property went to auction with a guide price of between 200 and 220,000.
0:16:57 > 0:17:00Is that about right in today's market?
0:17:00 > 0:17:06I'd put this on the market in the region of £250,000 because we've got the stamp duty threshold at 3%.
0:17:06 > 0:17:13That extra 2% stamp duty charged on properties over 250,000 can put a lot of buyers off.
0:17:13 > 0:17:16Especially in the current climate.
0:17:16 > 0:17:21A good, solid property that doesn't require too much work.
0:17:21 > 0:17:26Once renovated, though, it would struggle to break through the £250,000 barrier.
0:17:26 > 0:17:30So anyone taking this on to sell should be aware of that before auction day.
0:17:30 > 0:17:36Having said that, there's a healthy rental return, and it'll be a good long-term investment.
0:17:36 > 0:17:39Let's see who else thought so, as we go to auction.
0:17:43 > 0:17:4640 Newbury Road in Bromley, Kent.
0:17:46 > 0:17:48It's guided at 200, 220.
0:17:48 > 0:17:50Lovely one, this one. What can I see for the first one?
0:17:50 > 0:17:54Can I see a bid of 200 to start it off? Give me 190.
0:17:54 > 0:17:59Not going lower than 190. It's bid. 190, I want to start it at. 190,000, 190 I've got.
0:17:59 > 0:18:01200 I'm looking for. 200 anywhere?
0:18:01 > 0:18:04200 I've got. 210? 210.
0:18:04 > 0:18:07We've got 200,000 on the right-hand side. 210, anywhere else?
0:18:07 > 0:18:12210 in a fresh place. 220. I'll take 15 at this stage.
0:18:12 > 0:18:14215 from a maiden bidder. 220 I'm looking for.
0:18:14 > 0:18:18220 on the right, 220, and five.
0:18:18 > 0:18:20225, and 30.
0:18:20 > 0:18:24230. 230 I'm now looking for.
0:18:24 > 0:18:28I'll be selling to the lady at 225,000 on my left-hand side.
0:18:28 > 0:18:30Are you sure you're out? 230.
0:18:30 > 0:18:33225 for the second time.
0:18:33 > 0:18:36Third and final time at 230.
0:18:36 > 0:18:40230, and five. 235 I'm looking for.
0:18:40 > 0:18:41232?
0:18:41 > 0:18:43232.
0:18:43 > 0:18:50235? 232,000 on the left-hand side, I'll be selling for 232,000 for the first time.
0:18:50 > 0:18:56232,000, if you're sure you're out, for the second time. 235. And seven?
0:18:56 > 0:18:58237? No.
0:18:58 > 0:19:02235 is with you on the right-hand side now.
0:19:02 > 0:19:06237. If you're sure you're out, I'll be selling for 235 then, for the first time.
0:19:06 > 0:19:09Selling at 235 for the second time.
0:19:09 > 0:19:14Third and final time at 235,000 on my right, I will be selling.
0:19:14 > 0:19:17If you're all done, 235, it's sold.
0:19:19 > 0:19:24The winning bid of £235,000, 15 grand above the upper guide price,
0:19:24 > 0:19:30came from 19-year-old Amy and Sarah, who's 22.
0:19:38 > 0:19:42- Have you bought this house for yourselves? I saw you bidding at the auction.- Yes, that was me.
0:19:42 > 0:19:47No, we had actually bought it to rent, to do up, and let somebody else live in it.
0:19:47 > 0:19:53- So what's your relationship? - We're sisters.- You're sisters? - Yes.- Who's the oldest?- I am.
0:19:53 > 0:20:00That's why you were bidding on auction day! You're incredibly young to be buying property.
0:20:00 > 0:20:03- Is this your first property? - Yes, this is the first one.
0:20:03 > 0:20:07Our parents do it as a living, they do property developing. But this is our first project.
0:20:07 > 0:20:10They've given us plenty of advice and helped us along the way.
0:20:10 > 0:20:12It's been good to have someone who knows what they're talking about.
0:20:12 > 0:20:17- Were they quite keen for you guys to do the bidding as well on auction day?- Yes, very keen.
0:20:17 > 0:20:21They want us to take control of the project, and if we need a hand, they'll be there,
0:20:21 > 0:20:23but they kind of want us to do it.
0:20:23 > 0:20:27# Sisters are doing it for themselves... #
0:20:27 > 0:20:33With their parents in the property business, is it their chosen career, too?
0:20:33 > 0:20:38I've actually just finished at uni, so I've been studying chemical engineering before this.
0:20:38 > 0:20:41I've got a job, but I'm not starting until April, so to fill the gap
0:20:41 > 0:20:45- I'm doing a bit of this property developing.- And what about you, Amy?
0:20:45 > 0:20:48I just started uni a month ago,
0:20:48 > 0:20:54I'm doing mechanical engineering, so two engineers in the family, but I'm enjoying it so far, it's good.
0:20:54 > 0:21:00So is property developing something you think you'd like to do just as a sideline because of your parents?
0:21:00 > 0:21:04We definitely want to continue it and see where it goes,
0:21:04 > 0:21:08- and get a few more properties, it's a good income to have. - Yeah, between us.- Yeah.
0:21:11 > 0:21:13This isn't a bad one to start with.
0:21:13 > 0:21:15Was it beginner's luck?
0:21:15 > 0:21:17We've been looking around quite a bit.
0:21:17 > 0:21:20We knew the location was important for us,
0:21:20 > 0:21:25and this one is so near to the station you can commute into London, so that kind of sold it for us.
0:21:25 > 0:21:28Yeah, pretty much that's all we were looking for.
0:21:28 > 0:21:31And who did all the research? Were you both doing it independently?
0:21:31 > 0:21:35- We do it together.- So who is it who spotted this house?
0:21:35 > 0:21:38We were just looking through the auction programme
0:21:38 > 0:21:42and because this one is so near to our family home, it'd be convenient if we needed to do any work,
0:21:42 > 0:21:45so this kind of jumped out from the beginning.
0:21:45 > 0:21:48So did you view the property prior to the auction, Amy?
0:21:48 > 0:21:51I didn't, I saw it today for the first time.
0:21:51 > 0:21:53- So you've seen it for the first time today?- Yeah.
0:21:53 > 0:21:56- Wow! What do you think?- I really like it, I was surprised to come in.
0:21:56 > 0:21:58It was a lot better than I thought it would be.
0:21:58 > 0:22:00- Really?- It was a good surprise.
0:22:00 > 0:22:06She shouldn't only be surprised, but very pleased that they managed to pick such a good property.
0:22:06 > 0:22:11It only needs a bit of decorating and tidying up, unless of course they move that bathroom upstairs.
0:22:11 > 0:22:14It seems OK to have it down here, it's not too much of a problem.
0:22:14 > 0:22:17So what about putting in a bathroom upstairs?
0:22:17 > 0:22:19You've got that very small room off of the main bedroom,
0:22:19 > 0:22:23you can't do a lot with that, you've got a boiler stuck in the corner...
0:22:23 > 0:22:25- Yeah.- Any thoughts on that?
0:22:25 > 0:22:30We're thinking about putting in a basic shower, bath and toilet, but I think it depends whether
0:22:30 > 0:22:35we're going to get more renting income, whether it will be worth making the investment.
0:22:35 > 0:22:38Such wise heads on young shoulders.
0:22:38 > 0:22:40What about their budget?
0:22:45 > 0:22:50We're either going to spend about five grand and do it up to a nice standard, or if we can find
0:22:50 > 0:22:56somebody who wants to rent it as it is, then we don't have much to do other than a bit of cleaning.
0:22:56 > 0:22:59So how soon are you going to be cracking on with this, how long is it going to take you?
0:22:59 > 0:23:04We need to talk to some estate agents within the next couple of days, see what they say,
0:23:04 > 0:23:09- and hopefully, if we can rent it immediately, it should be within the next couple of months or so.- Really?
0:23:09 > 0:23:13- Hopefully, yeah.- Just as quick as possible. Even if we're painting the whole thing,
0:23:13 > 0:23:18it'd only take a week, so as soon as possible, it won't be long.
0:23:18 > 0:23:21Who out of the two of you is the one that's going to be barking all the orders?
0:23:21 > 0:23:25- No, teamwork, definitely. - We're quite evenly placed, yeah.
0:23:25 > 0:23:28- Really?- YEAH!- I have to say, you're very similar, you both laugh
0:23:28 > 0:23:31at the same time, you've got the same sort of mannerisms.
0:23:31 > 0:23:36- People say that a lot. - Even though she's older, she's not bossy?- No.- Not at all.
0:23:36 > 0:23:40- So you're sisters that get on well? - We do, we get on really well.
0:23:40 > 0:23:42So it shouldn't be a problem working together.
0:23:42 > 0:23:49Sarah and Amy haven't got too much to do to turn this around, and I think they're making the right decision
0:23:49 > 0:23:53renting this out. The question is, will they do anything to it?
0:23:53 > 0:23:57You can find out how the fledgling property developers get on later.
0:24:01 > 0:24:04Coming up, I take a sentimental journey to Cheshire.
0:24:06 > 0:24:08My property career started here.
0:24:09 > 0:24:13In Kent, a lot of elbow grease has gone into this semi.
0:24:13 > 0:24:16The guys who were painting it have made a bit of a mess,
0:24:16 > 0:24:19so it's been a continuous cycle of cleaning everything.
0:24:21 > 0:24:24But first, this house in Hampshire is spacious,
0:24:24 > 0:24:26but still there are tight spaces.
0:24:26 > 0:24:28The biggest task was getting the bed in here.
0:24:33 > 0:24:35Back in Southsea,
0:24:35 > 0:24:41Sam and Ton had bought a guest house for £248,000 at auction.
0:24:42 > 0:24:47It came with a double extension and many options.
0:24:47 > 0:24:51It could be converted into a family home or into three separate flats,
0:24:51 > 0:24:55or let out to students from nearby Portsmouth University.
0:24:55 > 0:24:58We've been looking for an investment for our children
0:24:58 > 0:25:01and this was something which we thought we could
0:25:01 > 0:25:03potentially turn into apartments,
0:25:03 > 0:25:05or use as a letting income for the future.
0:25:05 > 0:25:10# Everything I do
0:25:10 > 0:25:12# I do it for you... #
0:25:12 > 0:25:17Sam and Ton decided to go for the student rental option.
0:25:17 > 0:25:22They finished the extension and turned the whole of its ground floor
0:25:22 > 0:25:24into a kitchen-dining area.
0:25:29 > 0:25:33The old kitchen, which was as cluttered and a bit out of date,
0:25:33 > 0:25:35is now a utility room.
0:25:36 > 0:25:39To increase the potential income,
0:25:39 > 0:25:43they built two extra bedrooms - one in the extension above the kitchen,
0:25:43 > 0:25:46and this one which also has its own shower.
0:25:49 > 0:25:53Back in the main part of the building, that old guest house
0:25:53 > 0:25:56dining room has become the property's eighth bedroom.
0:25:56 > 0:26:01They've done an impressive job converting this place into student apartments.
0:26:01 > 0:26:05Has their original plan changed as much as the property?
0:26:05 > 0:26:08We did think about having it for our children,
0:26:08 > 0:26:12primarily because it was going to be split up into three apartments.
0:26:12 > 0:26:17But the feasibility of it, and also financially, it wasn't suitable,
0:26:17 > 0:26:21so we're doing it this way and to be quite honest,
0:26:21 > 0:26:23if we make a decent return on it,
0:26:23 > 0:26:26or if it brings out a decent rental return,
0:26:26 > 0:26:29we'll use that money to invest in something else for the children.
0:26:29 > 0:26:31There's loads of students around here,
0:26:31 > 0:26:36we've spoken to a few rental agents and they've said they can rent it out straight away.
0:26:36 > 0:26:40The option of turning this into a student rental, instead of a home
0:26:40 > 0:26:44or converting it into three flats, was a very good decision.
0:26:44 > 0:26:47In a city with a university there's always going to be the need for good
0:26:47 > 0:26:52quality accommodation, but to do this they'll have to be licensed
0:26:52 > 0:26:55as a house of multiple occupancy.
0:26:55 > 0:26:59We're in the process of applying for an HMO. We've still got all
0:26:59 > 0:27:02the fire certificates which are all up to date,
0:27:02 > 0:27:04all the fire doors, etc,
0:27:04 > 0:27:06all the smokes are linked.
0:27:06 > 0:27:09We just have to get an inspection,
0:27:09 > 0:27:14we have to get the electrician to write it off and the plumber.
0:27:14 > 0:27:16It's not far off, really, and we're there.
0:27:18 > 0:27:25Sam mentioned that the property needed an inspection, so I think we should be the first to look around.
0:27:25 > 0:27:30This room here we've had all rewired, for safety, mainly.
0:27:30 > 0:27:34Furniture-wise, I've just had all this painted, rubbed down,
0:27:34 > 0:27:36the same as up here, all rubbed down.
0:27:36 > 0:27:38The biggest task was getting the bed in here
0:27:38 > 0:27:40because it's a full-size one,
0:27:40 > 0:27:42it was just a small one in here to start with.
0:27:42 > 0:27:45But I think it's everyone's favourite room cos
0:27:45 > 0:27:48you've got the panoramic view and it's nice and toasty.
0:27:50 > 0:27:54Well, initially when I came in here it was a completely empty shell.
0:27:54 > 0:27:58Most of the flooring was down, I mean there were floorboards missing.
0:27:58 > 0:28:01I don't think you could get in here before.
0:28:01 > 0:28:03This wall was partially up,
0:28:03 > 0:28:08so initially we were toying with the idea of putting a bathroom in here,
0:28:08 > 0:28:11again if it was going to be a house we would have done,
0:28:11 > 0:28:15but because it's students we decided to just go for a shower room,
0:28:15 > 0:28:17and I think it's come out great.
0:28:17 > 0:28:19I think it looks fantastic.
0:28:19 > 0:28:24In fact I think this would be my room, if I was a student anyway.
0:28:27 > 0:28:30Turning the guest house into student accommodation
0:28:30 > 0:28:32was the cheapest option available to them.
0:28:34 > 0:28:36We were aiming for about 20.
0:28:36 > 0:28:39Things went up - the plumber went up,
0:28:39 > 0:28:41but some things went down so we didn't do...
0:28:41 > 0:28:43The electrician went up.
0:28:43 > 0:28:47I mean, I was pleased in regard to the amount of material
0:28:47 > 0:28:50that I've been able to reuse.
0:28:50 > 0:28:55Also, to be honest, because of the amount of time I've spent on the job,
0:28:55 > 0:28:59we've brought our budget, we were hoping for 20, and it's come in...
0:28:59 > 0:29:01- Just over.- Just over 18 and a half.
0:29:01 > 0:29:03No, it was about 18 and a half, wasn't it?
0:29:03 > 0:29:04Something like that, just over.
0:29:04 > 0:29:09They bought the property for £248,000
0:29:09 > 0:29:13and spent around £18,500 doing it up.
0:29:13 > 0:29:15They saved money because Sam's a builder
0:29:15 > 0:29:18and did some of the jobs himself. How long did it all take?
0:29:19 > 0:29:21It's taken about eight weeks,
0:29:21 > 0:29:24because Sam went off and did a couple of other jobs.
0:29:24 > 0:29:26We spoke to rental agents and we knew we weren't
0:29:26 > 0:29:29really going to get students in before Christmas,
0:29:29 > 0:29:30there wasn't a hurry,
0:29:30 > 0:29:34so Sam went off and did a couple of bits of Bob's for other people,
0:29:34 > 0:29:35so I think about eight weeks.
0:29:35 > 0:29:39Bits and bobs? Yeah, a couple of other quite large jobs,
0:29:39 > 0:29:43so we've been lucky in regard to tying it in with other work, yeah.
0:29:44 > 0:29:48To check it was worth Sam at doing this work between his other
0:29:48 > 0:29:53bits and bobs, we invited two local estate agents to look take a look.
0:29:53 > 0:29:55It's newly refurbished, very presentable,
0:29:55 > 0:29:58lots of en suite facilities, and the location is superb.
0:29:58 > 0:30:00A good-sized property,
0:30:00 > 0:30:03great location, most of the rooms are good sizes as well.
0:30:03 > 0:30:05You've got the odd small room,
0:30:05 > 0:30:06but then you do in every property.
0:30:06 > 0:30:08A nice kitchen dining area as well.
0:30:10 > 0:30:13Sam and Ton are going to let a management company
0:30:13 > 0:30:15look after renting out the property as a whole.
0:30:15 > 0:30:19That means they won't have to worry about individual flats
0:30:19 > 0:30:21and will get just one income per calendar month.
0:30:21 > 0:30:27If the whole house is occupied, we're looking at somewhere in the region of £2,000 per calendar month
0:30:27 > 0:30:31which, yearly, is somewhere around £25,000, which is a good investment.
0:30:31 > 0:30:36This property would rent at £2,225 per calendar month.
0:30:36 > 0:30:40That's good. That's more than I was actually hoping.
0:30:40 > 0:30:42It's more than we were thinking.
0:30:44 > 0:30:47I'm not surprised that's more than they expected,
0:30:47 > 0:30:49it's a very impressive 9-10% yield.
0:30:49 > 0:30:51But what if they wanted to sell?
0:30:51 > 0:30:54What's it worth on the open market?
0:30:54 > 0:30:57If they were looking to sell it in the current market,
0:30:57 > 0:31:01I would be looking to achieve somewhere between £350,000 and £375,000.
0:31:01 > 0:31:05I'd put this property on the market for £350,000.
0:31:07 > 0:31:08A nice turn around.
0:31:08 > 0:31:10- And who were they?- Yeah!
0:31:12 > 0:31:16Sam and Ton can afford to smile.
0:31:16 > 0:31:20They paid £248,000 at auction for this property
0:31:20 > 0:31:22and then spent £18,500 on it.
0:31:22 > 0:31:26If they sold it for between £350,000 and £375,000,
0:31:26 > 0:31:32that would mean a potential profit of £83,500 - £108,500,
0:31:32 > 0:31:34minus usual deductions.
0:31:34 > 0:31:37That's a very useful nest-egg for their children.
0:31:44 > 0:31:49Today, I'm heading back to my roots in Cheshire.
0:31:49 > 0:31:55This is Irwell Road, halfway between Warrington and trendy Stockton Heath.
0:31:55 > 0:31:58And this isn't the house that I'm here to see,
0:31:58 > 0:31:59that's just round the corner.
0:31:59 > 0:32:02However, it is a very significant property to me,
0:32:02 > 0:32:04because my grandma used to live here
0:32:04 > 0:32:08and when she died mum and dad sold it and used some of the money
0:32:08 > 0:32:10to enable me to buy my first house.
0:32:10 > 0:32:15So, if you like, my property career started here. Thank you, Grandma.
0:32:15 > 0:32:20# Is this the place, we used to love?
0:32:20 > 0:32:26# Is this the place that I've been dreaming of? #
0:32:32 > 0:32:35Well the property I'm here to see is a slightly unusual one.
0:32:35 > 0:32:38It's in this row of terraced bungalows -
0:32:38 > 0:32:40we don't see that very often.
0:32:40 > 0:32:42It could be a space-saving exercise,
0:32:42 > 0:32:45or maybe they just ran out of money after they built the first floor.
0:32:45 > 0:32:47Either way, this is it.
0:32:47 > 0:32:52At a guide price of £70-80,000, two bedrooms, let's take a look.
0:32:54 > 0:32:56It's certainly an odd one.
0:32:56 > 0:33:00Bungalows are usually detached with a sizable plot of land around them,
0:33:00 > 0:33:05but here it looks like they've sliced at the top off a terrace and bunged on a roof.
0:33:05 > 0:33:08Well it's not going to be massively spacious, is it?
0:33:08 > 0:33:10But, actually, it's not too bad.
0:33:10 > 0:33:11The front sitting room here,
0:33:11 > 0:33:15lots of light pouring in through the windows, not a bad-sized space,
0:33:15 > 0:33:17gas fire, want to have that checked out.
0:33:17 > 0:33:19It's a bit tired, a bit dated,
0:33:19 > 0:33:21as you can tell by the carpet and the wallpaper.
0:33:21 > 0:33:25But overall, hmm, it's looking positive.
0:33:25 > 0:33:28It actually feels cosy without being cramped.
0:33:28 > 0:33:30I'd get rid of the patterned paper.
0:33:30 > 0:33:33Just doing that would make it feel even bigger.
0:33:33 > 0:33:37The front bedroom is also a bit floral,
0:33:37 > 0:33:40but space-wise it's not bad.
0:33:40 > 0:33:43Aside from some peeling wallpaper,
0:33:43 > 0:33:45I really can't see anything wrong with it.
0:33:45 > 0:33:49The same goes for the back bedroom, though the theme has moved from
0:33:49 > 0:33:53flowers to fruit - oranges in the case of this carpet.
0:33:53 > 0:33:56But this is all superficial. The room itself is very pleasant
0:33:56 > 0:34:00and you could take out that fitted wardrobe to make it larger.
0:34:00 > 0:34:02The bathroom is, well, it's black,
0:34:02 > 0:34:07but not with dirt, I'm pleased to say. I rather like those tiles.
0:34:07 > 0:34:12It's a decent space, and with a shower installed it would be ideal.
0:34:12 > 0:34:15So, the bedrooms are fine, the loo and bathroom's fine,
0:34:15 > 0:34:18what absolutely isn't fine is the kitchen!
0:34:18 > 0:34:20I mean, I know the bungalow is small,
0:34:20 > 0:34:22but this is absolutely microscopic!
0:34:22 > 0:34:24Look, I can touch both sides!
0:34:24 > 0:34:27The bad news is, I can't really figure out a way of improving this.
0:34:27 > 0:34:30There's a cupboard at the end there that you could take out,
0:34:30 > 0:34:32you can't knock this wall down,
0:34:32 > 0:34:36I think it's going to be basically about choosing your units carefully,
0:34:36 > 0:34:38choosing your decorations carefully,
0:34:38 > 0:34:42and making the most of what is a pretty small space.
0:34:44 > 0:34:50Perhaps the answer to gaining some floor space in this bungalow lies elsewhere.
0:34:50 > 0:34:53At the back here - a decent-sized rear garden
0:34:53 > 0:34:55which is definitely good to have,
0:34:55 > 0:34:58but what can you do to increase the interior space?
0:34:58 > 0:34:59And much-needed THAT is.
0:34:59 > 0:35:02Well here's an idea, look what the next door neighbours have done.
0:35:02 > 0:35:06They've put a dormer on there and created an entire new room upstairs.
0:35:06 > 0:35:09In that loft... you have the potential,
0:35:09 > 0:35:11it's an untapped potential, to do that.
0:35:11 > 0:35:13I reckon stick one of those in
0:35:13 > 0:35:16and you'd really change this bungalow around completely.
0:35:19 > 0:35:20Converting the loft,
0:35:20 > 0:35:22subject to planning permission of course,
0:35:22 > 0:35:26means there's an opportunity to rearrange the layout downstairs.
0:35:26 > 0:35:29It also broadens the market for this property to include families.
0:35:29 > 0:35:32And there's another little extra just a short distance away.
0:35:32 > 0:35:37It's a bit of a walk across the tarmac, but the property does come with your very own garage,
0:35:37 > 0:35:40a perfect place for a workshop, storing your tools,
0:35:40 > 0:35:44the usual things that people do with garages - basically fill them with junk.
0:35:44 > 0:35:46In terms of a car parking space,
0:35:46 > 0:35:49well, there is already car parking right outside the property.
0:35:49 > 0:35:50So in terms of adding value?
0:35:50 > 0:35:55Well, in London, this might add a couple of hundred thousand quid, you never know.
0:35:55 > 0:35:58Here in Warrington, it's nice to have.
0:35:58 > 0:36:03I like this bungalow and the area, not only because it has sentimental value for me,
0:36:03 > 0:36:08but it's a good property in a convenient location, and a loft extension
0:36:08 > 0:36:10could make it even more appealing.
0:36:11 > 0:36:13I asked a local estate agent for his opinion.
0:36:13 > 0:36:16Certainly, having had a look through the property,
0:36:16 > 0:36:18it does need total redecoration.
0:36:18 > 0:36:21The main areas, bathroom and kitchen.
0:36:21 > 0:36:24Whether one incorporates the kitchen into another room,
0:36:24 > 0:36:25is a matter of choice.
0:36:25 > 0:36:29It's not a large property, it's adequate in its accommodation.
0:36:29 > 0:36:33It's obviously restricted, probably to first-time buyers or a retirement couple,
0:36:33 > 0:36:36a little bit tight for a family, but it's got marvellous potential
0:36:36 > 0:36:40and it's the convenience that it has to Warrington and Stockton Heath.
0:36:40 > 0:36:43I think that's what will probably draw the buyer to it.
0:36:43 > 0:36:46It's a good investment property, it would rent well.
0:36:46 > 0:36:52So, a good location with plenty of potential, and it should rent easily - but how lucratively?
0:36:53 > 0:36:58The property would rent in my opinion at £450-£470 per calendar month.
0:37:00 > 0:37:05The bungalow went to auction with a guide price of 70,000-80,000, but what could it be sold on for?
0:37:07 > 0:37:12Once renovated, I feel that the property would be on the market at £120,000.
0:37:13 > 0:37:20Well, small but perfectly formed - what this bungalow lacks in size, it makes up for in location.
0:37:20 > 0:37:25And even a pint-sized property like this, around here is definitely something worth going for.
0:37:25 > 0:37:28Plus, there is scope for development.
0:37:28 > 0:37:30Let's see who fancied it when it went to the auction.
0:37:34 > 0:37:375 Arnside Grove at Warrington,
0:37:37 > 0:37:3880,000 for it?
0:37:39 > 0:37:4170 then?
0:37:41 > 0:37:44At 60, all right. 60,000, I've got.
0:37:44 > 0:37:47At 62,500, I've got you, sir. At 62,500.
0:37:47 > 0:37:52Yes, 65. 67,500, sir? At 67,500.
0:37:52 > 0:37:57At 67... 70, At £70,000. Two and a half, sir?
0:37:57 > 0:37:5872,500.
0:37:58 > 0:38:0175, at 77,500, I've got you.
0:38:01 > 0:38:0478,500, all right, you're tempting providence, it's 78,500.
0:38:04 > 0:38:07At £80,000.
0:38:07 > 0:38:09At 81 here. At 81.
0:38:09 > 0:38:10At 82, sir?
0:38:10 > 0:38:1382,000. At 83, I've got you.
0:38:13 > 0:38:1484, sir?
0:38:14 > 0:38:1884,000. At 84,500.
0:38:18 > 0:38:22At 85. At 86, at £86,000.
0:38:22 > 0:38:2487? At £86,000
0:38:24 > 0:38:28it's going to the highest bidder once, twice...
0:38:28 > 0:38:3087. 88, sir?
0:38:30 > 0:38:32500, then. Don't miss it for 500.
0:38:32 > 0:38:39At 87,000. 87,500. At 87,500. 88.
0:38:39 > 0:38:47At £88,000. At £88,000 once, the bid is with you, sir. At £88,000 twice.
0:38:47 > 0:38:51At 88,000 it's with you, sir, I'm selling for the third and final time.
0:38:51 > 0:38:53HAMMER BANGS
0:38:53 > 0:39:00The successful bid of 88,000 - £8,000 above the guide price - was made by Mark.
0:39:00 > 0:39:06Now, he may look familiar as he's been on this show before - not once, but twice.
0:39:06 > 0:39:09# It's deja-vu... #
0:39:11 > 0:39:17When we first met him in April 2006, he was buying his fifth property.
0:39:17 > 0:39:21I went to get an update on Mark and his newest property.
0:39:21 > 0:39:24This is project number 59, now.
0:39:24 > 0:39:27- 59?- Yeah.- Wow!
0:39:27 > 0:39:30Been quite a successful few years, then?
0:39:30 > 0:39:32I've been busy, that's for sure.
0:39:32 > 0:39:34Tell me what you've been up to.
0:39:34 > 0:39:39Well, I've... At first - I started when the property market was buoyant - I was buying,
0:39:39 > 0:39:44doing up quickly, and selling quickly, and I was doing OK at that.
0:39:44 > 0:39:46Then we started to get into a bit of difficulty.
0:39:46 > 0:39:49I was left with four properties that I couldn't sell,
0:39:49 > 0:39:54I had no option but to let them out because I was quite heavily financed on them,
0:39:54 > 0:39:57and luckily, interest rates started coming down,
0:39:57 > 0:40:02so that then provided me an income, which then allowed me to continue.
0:40:02 > 0:40:06Since then, I've been buying on a buy-to-let basis,
0:40:06 > 0:40:10and I've been buying something like one a month, basically, since then.
0:40:10 > 0:40:13- So you've changed your strategy? - I've had to.
0:40:13 > 0:40:17The old strategy doesn't work at the moment - or doesn't work for me, anyway!
0:40:18 > 0:40:23He did the right thing by adapting his strategy around the changing property market.
0:40:23 > 0:40:27He bought this bungalow specifically to rent it out.
0:40:27 > 0:40:30I could rent it as it is, right now, it's not that bad,
0:40:30 > 0:40:35or I could...do a full refurb job on it and get more.
0:40:35 > 0:40:40The difficulty is, if I do a full refurb job on it, it might take me something like...
0:40:40 > 0:40:46I think I worked out, five years to get the money back on the increased rent that I would get.
0:40:46 > 0:40:47Oh, wow.
0:40:47 > 0:40:52So I'm probably going to end up just decorating and changing the carpets,
0:40:52 > 0:40:55and pretty much leaving the bathroom and kitchen as it is.
0:40:55 > 0:41:01What difference would it have made to the rent and how much would it have cost to do these things?
0:41:01 > 0:41:06OK. I have taken advice and I've looked at the numbers myself.
0:41:06 > 0:41:10I think I could rent this in its current condition, right now, for £400.
0:41:10 > 0:41:17I figured that if I spent something like £6,000-£7,000 on it, I could probably get £500 a month.
0:41:17 > 0:41:23- Right.- I think the top-end rent I could get if I change the bathroom and the kitchen
0:41:23 > 0:41:25and really went to town on it,
0:41:25 > 0:41:30the best I could do is probably 575 or maybe 600 for this particular property.
0:41:30 > 0:41:36So on that basis of, say, an extra £100 a month, that's £1,200 a year.
0:41:36 > 0:41:39If you've spent £6,000, that's five years or whatever.
0:41:39 > 0:41:42It takes a while to get it back, so you ask, "Is it worth it?"
0:41:42 > 0:41:46I think what I'd prefer to do, is put a new kitchen and bathroom in it when I come to sell it,
0:41:46 > 0:41:50five or six, maybe ten years' time, whenever the right time is.
0:41:50 > 0:41:53So anything like putting a dormer in is out of the question?
0:41:53 > 0:41:57I don't believe I can get much more increase in rent
0:41:57 > 0:42:00by putting a dormer in, that's another increased cost again.
0:42:00 > 0:42:03The strategy might be different when I come to sell it.
0:42:03 > 0:42:08It might be worth turning it into a three-bedroom house rather than a two-bedroom,
0:42:08 > 0:42:09so that's a possibility.
0:42:09 > 0:42:15Mark's done all the sums and is only going to do work that will add value to the property.
0:42:15 > 0:42:18There's not a lot to do here, so it should be ready for letting out soon.
0:42:18 > 0:42:23If I stick with that plan, four weeks tops,
0:42:23 > 0:42:29if I'm talking bathroom and kitchen as well, I might go the whole hog, you'll come back, I might do it...
0:42:29 > 0:42:32- You might do the kitchen and bathroom?!- I might do.- No!
0:42:32 > 0:42:34After all you've just said?
0:42:34 > 0:42:36Well, it goes back to the labour of love.
0:42:36 > 0:42:40You've seen the properties I've done in the past, I like doing this, you know.
0:42:40 > 0:42:44Commercially, I shouldn't do anything, just get people in the door,
0:42:44 > 0:42:46£400 a month, thank you very much.
0:42:46 > 0:42:48- But... - MARTIN LAUGHS
0:42:48 > 0:42:51- I know.- Well, you can't knock it, it's been successful for you,
0:42:51 > 0:42:54whether the strategy is completely right or not,
0:42:54 > 0:42:57it's working for you, so I don't think you can knock it.
0:42:57 > 0:43:03So, Mark's showing exactly what it takes to be a successful property investor.
0:43:03 > 0:43:06You need to adapt to market conditions to survive.
0:43:06 > 0:43:08That is exactly what he has done,
0:43:08 > 0:43:13and over the last three years, we've followed his successes on Homes Under The Hammer.
0:43:13 > 0:43:15I'm sure there will be many more.
0:43:15 > 0:43:21With this place? Well, as far as I'm concerned the big question is, will he let his heart rule his head?
0:43:21 > 0:43:23I think he might.
0:43:23 > 0:43:26You can find out how he gets on later in the show.
0:43:29 > 0:43:34Well, there's no time like the present and we're dying to see how our buyers have got on.
0:43:34 > 0:43:36Yeah, let's go back and find out.
0:43:37 > 0:43:43This two-bedroom semi-detached house in Bromley was bought at auction for 235,000.
0:43:43 > 0:43:49It's only a short walk from Bromley train station, which is then just a 20-minute commute into London.
0:43:50 > 0:43:55The property, which was in good condition, was bought by sisters, Sarah and Amy,
0:43:55 > 0:43:57whose parents are property developers.
0:43:57 > 0:44:00They want us to take control of the project.
0:44:00 > 0:44:03If we need a hand, they'll be there, but they want us to do it.
0:44:03 > 0:44:08As it happened, the girls were very lucky. There wasn't that much to do.
0:44:08 > 0:44:11# You're the lucky one So I've been told
0:44:11 > 0:44:15# As free as the wind blowing down the road
0:44:15 > 0:44:17# Loved by many Hated by none
0:44:17 > 0:44:20# I'd say you were lucky cos I know what you've done
0:44:20 > 0:44:23# Not a care in the world Not a worry inside
0:44:23 > 0:44:25# Everything's going to be all right
0:44:25 > 0:44:28# Cos you're the lucky one... #
0:44:28 > 0:44:31We've just kind of painted all the walls,
0:44:31 > 0:44:36we've cleaned very well the whole place, and we've got new curtains in and that's about it, really.
0:44:36 > 0:44:38An alarm system and that's all.
0:44:39 > 0:44:41You make it all sound so easy.
0:44:41 > 0:44:44But, hang on, weren't there two of you before?
0:44:46 > 0:44:50Amy's been quite busy at uni but she's been back when she's had the time.
0:44:50 > 0:44:52She's been on the phone checking everything's OK.
0:44:52 > 0:44:54So, she's been involved.
0:44:56 > 0:44:58Ah, good. Let's see what they've been doing, then.
0:45:01 > 0:45:04OK, all we've done in here is just put in some new doors.
0:45:04 > 0:45:07We've used glass ones to let the light through the house a lot more.
0:45:07 > 0:45:11And just some new handles on them and painted them all nicely.
0:45:11 > 0:45:16We've also added a new curtain in here, so I now know how to use a sewing machine, as well!
0:45:18 > 0:45:22That's the thing about property development - you're always learning.
0:45:23 > 0:45:28The sisters decided not to turn this small room into a new bathroom
0:45:28 > 0:45:31and kept the original one downstairs next to the kitchen.
0:45:33 > 0:45:34Have they had any problems?
0:45:34 > 0:45:37There's been a lot of time spent on cleaning.
0:45:37 > 0:45:41Every time we've cleaned the house, the guys painting it have made a bit of mess.
0:45:41 > 0:45:44So, it's been a continuous cycle of cleaning everything.
0:45:44 > 0:45:48But it's made such a difference to the whole place, especially the kitchen.
0:45:49 > 0:45:50So, yes, it's been worth it.
0:45:51 > 0:45:57Well, it certainly looks sparkling and fresh as a result of all that elbow grease.
0:45:57 > 0:46:00It turns out that Sarah's mum and dad have been helping out.
0:46:00 > 0:46:02When I've been busy or away from the project,
0:46:02 > 0:46:05my dad's been here making sure the guys get on with it.
0:46:05 > 0:46:10My mum has also been around just helping me clean and making tea for everyone
0:46:10 > 0:46:14so it's been quite... quite a good family event.
0:46:15 > 0:46:17How did the sisters get on outside?
0:46:19 > 0:46:21I have to admit outside isn't my strong point.
0:46:21 > 0:46:26I've just done... My dad's done a lot of pressure washing of all the stones out here
0:46:26 > 0:46:29and I think it's made a big difference, it looks a lot cleaner.
0:46:29 > 0:46:32My mum's done a lot of gardening, trimming all the shrubs
0:46:32 > 0:46:34and it generally makes the space a lot bigger.
0:46:34 > 0:46:38We've also put a new roof on the shed just to make it watertight
0:46:38 > 0:46:42and put a security light up so that, even in the night time, they can use the space.
0:46:43 > 0:46:46It's lovely to have somewhere to relax or sunbathe
0:46:46 > 0:46:50even if it's overlooked by a multi-storey car park!
0:46:52 > 0:46:57I can't imagine that costs here have been particularly high so far.
0:46:57 > 0:47:02I'd say we've definitely spend under £1,000. Probably about £900, so a small budget.
0:47:02 > 0:47:09It is a low spend, but the girls were very lucky with this house and that it was in such good condition.
0:47:09 > 0:47:14They're planning on renting it out, so what have they done to ensure they're good landlords?
0:47:14 > 0:47:18We've just done all the regular safety - the gas checks and certificates.
0:47:18 > 0:47:23We've put in smoke alarms everywhere and we've installed a burglar alarm. There's sensors in every room,
0:47:23 > 0:47:27just so the tenants are going to feel safe when they're here.
0:47:27 > 0:47:30The girls seem ready to go. To check it out,
0:47:30 > 0:47:34we invited a couple of local estate agents to give us their opinion.
0:47:35 > 0:47:37It's a good looking property.
0:47:37 > 0:47:39It's got nice windows, it's got good kerb appeal.
0:47:39 > 0:47:42It's still bare brick, which is nice. It keeps it original.
0:47:42 > 0:47:44The property's changed a lot, actually.
0:47:44 > 0:47:46Good, fresh lick of paint everywhere.
0:47:46 > 0:47:50Nice, dressed curtains, dressed all the windows nicely.
0:47:50 > 0:47:53New blinds in the kitchen, chose very nicely.
0:47:53 > 0:47:56It's a nice, newly decorated property.
0:47:56 > 0:48:01It's neutral, which is good. People can then see what they can do to put their own stamp on it.
0:48:02 > 0:48:07It looks as though the girls have landed on their feet with this one.
0:48:07 > 0:48:09And that it should rent out fairly easily.
0:48:09 > 0:48:12I think to rent this out, on a calendar month
0:48:12 > 0:48:16you're probably looking in the region of £900 - £1,000.
0:48:16 > 0:48:21I would market the property at £1,000 per month and hope to achieve about £950 per month.
0:48:21 > 0:48:25We had a tenant that fell through. They were meant to be moving in
0:48:25 > 0:48:28tomorrow but we've actually had another offer on the property
0:48:28 > 0:48:32so we're really happy and that's for £1,000 a month. That's exactly what we wanted.
0:48:32 > 0:48:35Well, they certainly seem to have a guardian angel.
0:48:35 > 0:48:41They only bought it a month ago for £235,000 and have spent less than £1,000 doing it up.
0:48:41 > 0:48:45Could they already have added value to it?
0:48:45 > 0:48:52I would put this property on the market for £259,950 to achieve somewhere in the region of £250,000.
0:48:52 > 0:48:59I would market this property at £255,000 to achieve £250,000.
0:48:59 > 0:49:04Because of the stamp duty threshold, you'd struggle to get over that.
0:49:04 > 0:49:07I'm really happy. I didn't think it would go up in price as it's only
0:49:07 > 0:49:11been a month since we've been doing up the place. I'm really pleased.
0:49:16 > 0:49:22If they sell it for £250,000, that's a potential profit of around £14,000,
0:49:22 > 0:49:24minus the usual deductions.
0:49:24 > 0:49:28Not bad for four weeks's work!
0:49:28 > 0:49:31It's been quite easy for both of us. Obviously the project hasn't had
0:49:31 > 0:49:35too many complications and there hasn't been too much stress.
0:49:35 > 0:49:37So it means that we're ready to do another one soon.
0:49:37 > 0:49:42I'm really impressed with Sarah and Amy's first venture into the property development world.
0:49:42 > 0:49:48They made a clever investment here and benefited from their parents' experience of the business.
0:49:48 > 0:49:52Even those doors were left over from a project their father was doing.
0:49:52 > 0:49:53If they keep this up,
0:49:53 > 0:49:58it might be curtains for their engineering careers.
0:50:05 > 0:50:09Mark bought this two-bedroom bungalow in Cheshire at auction.
0:50:09 > 0:50:14He paid £88,000 with the sole intention of renting it out.
0:50:15 > 0:50:19I could rent it as it is, right now. It's not that bad.
0:50:19 > 0:50:24Or I could do a full refurb job on it and get more.
0:50:34 > 0:50:38Four months on and it looks like someone's moved in.
0:50:38 > 0:50:45Not a huge amount has changed, though there has been some redecoration. What's the story then?
0:50:45 > 0:50:51Well, Mark did replace the boiler and get the required gas and electrical safety tests done.
0:50:51 > 0:50:54Before spending big money on refurbishment, he advertised
0:50:54 > 0:50:59the bungalow at a low rent just to see if there were any takers.
0:50:59 > 0:51:04There's quite a few things I was going to do, which is change the bathroom and the kitchen.
0:51:04 > 0:51:09And generally change the decor, just kind of modernise the place.
0:51:09 > 0:51:17That would have meant I'd have had to charge a lot more rent, in the region of something like 525-550.
0:51:17 > 0:51:24But as I didn't have to do a great deal to the property, I was happy to let at £395 per calendar month.
0:51:24 > 0:51:29As luck would have it, the timing was perfect for young couple, Nicola and Andrew.
0:51:29 > 0:51:33They were delighted to move into the bungalow, pay a lower rent
0:51:33 > 0:51:38and just to do enough improvements themselves to make it feel like home.
0:51:38 > 0:51:43We basically just, needed somewhere to live, it was getting a bit expensive where we were.
0:51:43 > 0:51:47And I went into work and just happened to mention it to one of my colleagues,
0:51:47 > 0:51:51who's sister is from a letting agency and she said they'd just got this place come up.
0:51:51 > 0:51:54- So we had a look at it that day and just decided we'd go for it.- Yes.
0:51:56 > 0:51:59It sounds like a good deal for everyone.
0:51:59 > 0:52:04Landlord Mark has done minimal work while his new tenants,
0:52:04 > 0:52:07Andrew and Nicola have got a new home quickly and at a lower rent.
0:52:09 > 0:52:12We're getting the rent cheaper than it would be ordinarily,
0:52:12 > 0:52:17because we're doing the decorating and the DIY, things like that.
0:52:17 > 0:52:20And then after we've done that it should stay the same.
0:52:20 > 0:52:22Hopefully!
0:52:22 > 0:52:27Nicola and Andrew have mentioned that over time they'll just improve
0:52:27 > 0:52:30their living space, which obviously suits me perfectly.
0:52:30 > 0:52:34In return, I'm happy for them to let the property from me for as long as they like.
0:52:37 > 0:52:42Gradually they've been sprucing the place up and adding personal touches to make it feel homely.
0:52:44 > 0:52:49One of the first rooms the couple wanted to tackle was that tired old bathroom.
0:52:49 > 0:52:52When we first moved in, this bathroom was pretty grim.
0:52:52 > 0:52:56It had green wallpaper, it had dirty green carpets.
0:52:56 > 0:53:00So we pulled up the carpets, put some new flooring down, painted the walls white,
0:53:00 > 0:53:04installed a brand-new blind and a brand-new shower and some shelves.
0:53:04 > 0:53:09As well as doing the bathroom, the couple have also decorated the bedrooms,
0:53:09 > 0:53:11one of which is now a dining room.
0:53:14 > 0:53:17They've also freshened up the sitting room.
0:53:17 > 0:53:21Surely that's all they'll do as it's rented accommodation after all?
0:53:21 > 0:53:27This is the kitchen. Obviously, very, very '70s, outdated decor.
0:53:27 > 0:53:30Not one of my favourite rooms, I have to admit.
0:53:30 > 0:53:34I think, once we've got the money to do it, it's going to be a long-term project.
0:53:34 > 0:53:39When we can afford to do it, when we've got the time, maybe just replace the walls.
0:53:39 > 0:53:42I don't mind the tiles, they'll probably stay. But sort out new flooring,
0:53:42 > 0:53:46change the cupboard doors, just freshen it up, give it a modern look.
0:53:46 > 0:53:49Sort out that ceiling, get rid of the light and maybe some spotlights.
0:53:49 > 0:53:52Just, like I say, freshen it up, make it more modern, a nicer space
0:53:52 > 0:53:58to work in, rather than this very retro, pretty grim kitchen.
0:53:58 > 0:54:01But it's functional, so that's the important thing.
0:54:03 > 0:54:05That's potentially a big expense.
0:54:05 > 0:54:09They shouldn't spend too much on things they can't take away.
0:54:09 > 0:54:13- So far, money-wise, I think we've probably spent a couple of hundred at least.- Yes.
0:54:13 > 0:54:18I think we want to replace the carpets, definitely in here and in the bedroom.
0:54:18 > 0:54:22We definitely need to replace the carpet in the dining room,
0:54:22 > 0:54:23that lovely, orange carpet.
0:54:23 > 0:54:27But it's just a case of when we can afford to do that, we will.
0:54:28 > 0:54:34They may want to make some more changes to the bungalow, but what are Mark's impression so far?
0:54:34 > 0:54:38This is the first time I've returned to the property since the tenants have moved.
0:54:38 > 0:54:43I am delighted with what they've done to the property and how they're looking after it.
0:54:43 > 0:54:48They're ideal tenants and as a landlord I cannot ask for more, really.
0:54:50 > 0:54:52Mark's pleased with the improvements.
0:54:52 > 0:54:54But has the rental value been affected?
0:54:54 > 0:54:58We asked two local estate agents for their thoughts.
0:54:58 > 0:55:03It's an interesting bungalow. It's got plenty of space inside and out.
0:55:03 > 0:55:05Good part of South Warrington
0:55:05 > 0:55:08but obviously needs improvements in places.
0:55:08 > 0:55:13The property does need substantial modernisation to attract a better
0:55:13 > 0:55:16market, both in terms of the market to sell and the market to rent.
0:55:19 > 0:55:25Mark paid £88,000 for this property at auction and is currently getting £395 per calendar month.
0:55:25 > 0:55:29So is that about the right rental rate?
0:55:29 > 0:55:31With the slight improvements that have been made
0:55:31 > 0:55:37I would expect to put it on the open market for at least £395-£450 per calendar month.
0:55:37 > 0:55:43I would say a rental here of approximately £450 per calendar month, in its present state.
0:55:43 > 0:55:46Those rental valuations seem to be in line with what I'm thinking.
0:55:46 > 0:55:52I'm currently happy with the rent I'm achieving for this property and what I paid for it.
0:55:52 > 0:55:56And as long as Nicola and Andrew are happy, I'm happy too.
0:55:58 > 0:56:01This seems to be a win-win situation.
0:56:01 > 0:56:07Nicola and Andrew get a home at the lowest rental price and Mark has tenants looking after his property.
0:56:07 > 0:56:10What are the couple's long-term plans?
0:56:10 > 0:56:12Long term, I think we'll stay here for a while.
0:56:12 > 0:56:15Yes, we've got quite a good set-up, haven't we?
0:56:15 > 0:56:18We can do what we want with the place, make it our home.
0:56:18 > 0:56:22It's somewhere we can see ourselves staying for a while, definitely.
0:56:22 > 0:56:27And when we've finally got a deposit to buy our own house, we can move on.
0:56:27 > 0:56:30I just hope Andrew and Nicola don't get carried away
0:56:30 > 0:56:34and spend all their deposit on this rented accommodation.
0:56:36 > 0:56:38Well, that's all we've got time for.
0:56:38 > 0:56:43We hope that today's properties have surprised, inspired and entertained you.
0:56:43 > 0:56:46Join us next time for more Homes Under The Hammer.
0:56:46 > 0:56:48- See you then.- Goodbye.- Goodbye.
0:57:05 > 0:57:08Subtitles by Red Bee Media Ltd
0:57:08 > 0:57:11E-mail subtitling@bbc.co.uk