0:00:02 > 0:00:04It's easy to fall in love with a house, we've both done it.
0:00:04 > 0:00:06Yes, but it's not such a good idea if you're buying an investment
0:00:06 > 0:00:08rather than a home.
0:00:08 > 0:00:11But that's all part and parcel of buying Homes Under The Hammer.
0:00:36 > 0:00:43From Manchester to Cardiff, Devon to Kent, you're never far away from the sound of an auctioneer's gavel.
0:00:43 > 0:00:46Thousands of places are sold at property auctions every year.
0:00:46 > 0:00:50So let's take a look at the three that went under the hammer today.
0:00:51 > 0:00:58'I'll be getting into a spin about the best use for this old mill in Derby.'
0:00:58 > 0:01:00Any ideas?
0:01:02 > 0:01:06'I find something rather vital missing from this terraced house in Middlesex.'
0:01:06 > 0:01:10And as far as kitchens go, there isn't one!
0:01:12 > 0:01:17'And in Clydebank, this two-storey maisonette ticks all the right boxes for me.'
0:01:17 > 0:01:21All in all...pretty good.
0:01:22 > 0:01:25'All these properties have been sold at auction.
0:01:25 > 0:01:29'We'll find out who bought them, and for how much, when they went under the hammer.'
0:01:29 > 0:01:31Sold.
0:01:34 > 0:01:38I'm in Derby, in the fashionable Cathedral Quarter.
0:01:38 > 0:01:42The bus station and train station are just over there, two minutes away you have the
0:01:42 > 0:01:47city centre, and the property I'm here to see is about a mile away.
0:01:47 > 0:01:51'Derby makes a perfect base to explore surrounding areas like
0:01:51 > 0:01:55'the Peak District and the Derbyshire Dales.
0:01:55 > 0:01:58'But there is no time today, as I'm hot on the trail of an auction lot.'
0:01:58 > 0:02:04The property I'm here to see isn't a house, it's a former mill.
0:02:04 > 0:02:08It is this building here. The great news is you get all three floors.
0:02:08 > 0:02:164,000 square feet plus in total, and the guide price was just £115,000.
0:02:17 > 0:02:18Whoa!
0:02:18 > 0:02:24'Outside, this converted former mill still has some lovely features.
0:02:24 > 0:02:27'I can't wait to see what it's got to offer inside.'
0:02:27 > 0:02:31A real sense of wonder as you walk into a building like this.
0:02:31 > 0:02:34What's going to be in store behind the door?
0:02:34 > 0:02:39Well, entrance hall here, then through into what I imagine was the reception lobby.
0:02:39 > 0:02:42You've got loos, store room and boiler through there,
0:02:42 > 0:02:46and immediately it's not a derelict warehouse, that's for sure.
0:02:46 > 0:02:49It's obviously been reasonably recently refurbished.
0:02:49 > 0:02:55Through here into the main room downstairs, and you have to say,
0:02:55 > 0:02:57it's a good size.
0:02:57 > 0:03:02I'm immediately thinking, lots of different options for this building, but actually,
0:03:02 > 0:03:05a lot of the hard work has been done.
0:03:05 > 0:03:07Great, let's see if it carries on upstairs.
0:03:07 > 0:03:12'Currently, there's planning consent to convert the building into office suites.
0:03:12 > 0:03:15'Might the planners consider a change of use to residential?
0:03:15 > 0:03:18'I doubt it, but stranger things have happened.
0:03:18 > 0:03:22'After all, this is right in the middle of a residential area.'
0:03:22 > 0:03:27Up here you get a real sense of the former use of the building.
0:03:27 > 0:03:30It was a mill, and you can see these arched windows, the glass,
0:03:30 > 0:03:35things like these great big pillars are absolutely superb.
0:03:35 > 0:03:39When you think about its potential commercial use, what you're really after is lots of space,
0:03:39 > 0:03:45and boy, oh boy, does this building score in that instance. Come here.
0:03:45 > 0:03:48A fantastic big room through here as well.
0:03:48 > 0:03:54It's just terrific. The uses for this place really are a multitude.
0:03:54 > 0:03:57I mean, any ideas?
0:03:59 > 0:04:01It's great.
0:04:01 > 0:04:04# Purple rain, purple rain... #
0:04:04 > 0:04:06'Not sure about the choice of colour of carpets though.
0:04:06 > 0:04:10'Another bonus is that there are toilets and kitchens on each floor.
0:04:10 > 0:04:15'This increases the potential to rent out each level to different companies.'
0:04:15 > 0:04:18Up here on the top floor, a real surprise in store,
0:04:18 > 0:04:21because it has been kitted out perfectly as a set of offices.
0:04:21 > 0:04:26Things like all these dividers have been put in place. To do this is going to cost you a fortune.
0:04:26 > 0:04:29It just goes on, there's this nice sort of communal area here,
0:04:29 > 0:04:34you've got a sink, a fridge, things like a large industrial photocopier.
0:04:34 > 0:04:38Again, if you were looking to set up a business in this building it's all here for you.
0:04:38 > 0:04:44Not only that, all the electrics are done, the lighting, it's basically ready to move into.
0:04:44 > 0:04:46Here's a boardroom.
0:04:46 > 0:04:49Lots of light flooding in, you've got nice carpet, soundproofing.
0:04:49 > 0:04:53All in all it's perfect and I tell you what, if I was having a board meeting in here and it was
0:04:53 > 0:04:57my company deciding whether or not to buy this place, I'd say unanimously,
0:04:57 > 0:04:59"Oh yes, we're going to buy it!"
0:04:59 > 0:05:06'Well, there was a great deal on offer here at the guide price of £115,000. The only negative,
0:05:06 > 0:05:11'if I'm being really picky, is that it's a fair old way up to the top floor and currently there's no lift.
0:05:11 > 0:05:15'That's something any prospective business here would have to bear in mind.
0:05:15 > 0:05:18'Time to find out what the auctioneer who will
0:05:18 > 0:05:22'sell the property thinks are the likely uses for this former mill.'
0:05:22 > 0:05:26I think there's a strong chance that one of its future
0:05:26 > 0:05:30uses could be residential, either in part or in whole.
0:05:30 > 0:05:33We're in a residential area, there is a fairly strong demand
0:05:33 > 0:05:35here for rented accommodation.
0:05:35 > 0:05:39I think it's possible that somebody might try and divide it into smaller
0:05:39 > 0:05:45units to make it into shared accommodation, say, for students, that's a possibility.
0:05:45 > 0:05:47'What about the bricks and mortar?
0:05:47 > 0:05:53'The place looks in pretty good nick to me, and there's parking at the back which is welcome news.'
0:05:53 > 0:05:55The fabric of the building actually is quite good.
0:05:55 > 0:06:00It had a total renovation programme when it was first converted, and it has been maintained in
0:06:00 > 0:06:06fairly good order since, so there actually is not a lot to do here in terms of making any alterations,
0:06:06 > 0:06:09but of course it's all down to what you want to use it for.
0:06:09 > 0:06:11'Let's talk money.
0:06:11 > 0:06:15'What could a ballpark rental figure for the whole building be?'
0:06:15 > 0:06:21If was rented out as it is now, that's to say a single office block on three floors,
0:06:21 > 0:06:27my view would be that it would rent for somewhere probably in the region of £20-22,000 a year.
0:06:27 > 0:06:34If you buy it at somewhere around £120-125,000, that actually gives you a fantastic return on paper,
0:06:34 > 0:06:37assuming you can rent it, and that's the big if.
0:06:37 > 0:06:42'It appears to be a place that's all ready to go for any investor planning to rent it out,
0:06:42 > 0:06:48'but I doubt it would appeal to a speculator hoping to add value by refurbishing it and selling it on,
0:06:48 > 0:06:51'because there's not really that much you can do here.'
0:06:51 > 0:06:54Before we go to the auction to see who bought this place,
0:06:54 > 0:06:56let's talk through the economics of this building.
0:06:56 > 0:06:58It is over 4,000 square feet.
0:06:58 > 0:07:02Let's assume you could rent it out for between £5 and £7 a square foot,
0:07:02 > 0:07:06that's well over £20,000 per year potential income.
0:07:06 > 0:07:10For an investment guide price of £115,000?
0:07:10 > 0:07:12The numbers definitely stack up.
0:07:12 > 0:07:16Let's see who bought it when it went under the hammer.
0:07:16 > 0:07:18Lot 35, this is the mill building
0:07:18 > 0:07:22converted into extensive office accommodation.
0:07:22 > 0:07:24Potential for a variety of uses, ladies and gentlemen.
0:07:24 > 0:07:28How much for this? The guide is 115 plus, do you want to start me at 120?
0:07:28 > 0:07:32120? 115?
0:07:32 > 0:07:36Put it in at 110, there's a lot of building for the money.
0:07:36 > 0:07:39110, thank you. 112 somewhere?
0:07:39 > 0:07:42112 in the corner. 114.
0:07:42 > 0:07:49116 is bid. 118. 119. 120.
0:07:49 > 0:07:51121? 121.
0:07:51 > 0:07:58122. 123. 124.
0:07:58 > 0:08:05125. 126. 127. 128. 129.
0:08:05 > 0:08:11130. 131. 132.
0:08:11 > 0:08:13133.
0:08:13 > 0:08:15134.
0:08:15 > 0:08:20135. 136. 137. 138.
0:08:20 > 0:08:22139. 140.
0:08:22 > 0:08:24141.
0:08:24 > 0:08:27141.5.
0:08:27 > 0:08:30142. And a half.
0:08:30 > 0:08:34143. And a half. 144. And a half.
0:08:34 > 0:08:37145.
0:08:37 > 0:08:41145,000. 145,500.
0:08:41 > 0:08:44146. 146,500.
0:08:44 > 0:08:47147. 147,500.
0:08:47 > 0:08:54148. 148? No.
0:08:54 > 0:08:57£148,000, anywhere else?
0:08:57 > 0:09:00Once, twice, third time,
0:09:00 > 0:09:02sold at 148.
0:09:02 > 0:09:07'That successful bid of 148,000 came from Subhi.
0:09:07 > 0:09:12'He was bidding on behalf of his friends, Clifton and Caroline.
0:09:12 > 0:09:16'I met up with the couple at their new property to find out their plans.'
0:09:16 > 0:09:21Clifton, Caroline, great to meet you both. I can't believe you got this place for 148,000.
0:09:21 > 0:09:24Yeah, it was a steal, I think.
0:09:24 > 0:09:27Amazing, tell me why you wanted to buy it, what's it for?
0:09:27 > 0:09:32We've got a couple of businesses that we wanted to combine together, and we wanted to put them in one
0:09:32 > 0:09:36building, but instead of at the moment they're all in separate buildings.
0:09:36 > 0:09:39So tell me exactly what you plan to use it for.
0:09:39 > 0:09:42The top floor, we're going to put our
0:09:42 > 0:09:46security company on it, and the bottom two floors is going to be for a boxing gym.
0:09:46 > 0:09:48- A boxing gym?- Yeah.
0:09:50 > 0:09:54- Why a boxing gym? - Because boxing's my passion, my love.
0:09:54 > 0:09:57- Are you a boxer? - Ex-boxer, I don't box any more.
0:09:57 > 0:10:00- Right. Were you good? - Well, all right.
0:10:00 > 0:10:05- What do you call all right? - 20 professional fights, won 18, lost two.
0:10:05 > 0:10:08- You won 18 out of 20 professional fights?- Yeah.
0:10:08 > 0:10:13- Won them well?- Yeah, well, 16 knockouts, two on points.
0:10:13 > 0:10:18- A knockout, right, that's where you go smack and the guy goes... - Do you want me to show you?
0:10:18 > 0:10:21No, thank you, but I can just imagine.
0:10:21 > 0:10:26I really want to put something back into the community and something back into the kids.
0:10:26 > 0:10:29There's not a lot of stability in a lot of kids' lives,
0:10:29 > 0:10:33and we don't really get no council help or help from the Government.
0:10:33 > 0:10:37This is virtually... We started it out of my own pocket,
0:10:37 > 0:10:42so now if I can keep it going and produce some champions
0:10:42 > 0:10:46and give Derby a boost and get some champions coming out of Derby.
0:10:52 > 0:10:58Clifton's obviously got a social conscience, which is a great reason to invest money in a property.
0:10:58 > 0:11:01It sounds like there could be a win-win situation here.
0:11:01 > 0:11:06So talk me through exactly what you're going to do to the place then, floor by floor.
0:11:06 > 0:11:08Well, on the ground floor I'm going to rip it all out,
0:11:08 > 0:11:11put the boxing rings downstairs, maybe some machinery.
0:11:11 > 0:11:14Second floor will be punch bags, a fitness studio,
0:11:14 > 0:11:20some bits and bobs - exercise mats, bikes, runners, bits and bobs like that.
0:11:20 > 0:11:25Then the top floor we're going to move our security business into the top floor and set that up.
0:11:25 > 0:11:30We were quite happy to get the top floor cos we had a bit of an argument about it at first, didn't we?
0:11:30 > 0:11:36- Yes, because I wanted to rip it all out.- He wanted to rip all this out, because there are posts downstairs,
0:11:36 > 0:11:41and a boxing ring wouldn't fit in the posts, so I came to look at it the first time,
0:11:41 > 0:11:46cos I wasn't at the auction, and I got all excited, saw the upstairs,
0:11:46 > 0:11:50"Yeah, I'm going to move the office here, it'll look really nice and smart,"
0:11:50 > 0:11:54and he said, "No, you're going downstairs." So since then, we've had architects in.
0:11:54 > 0:11:58They've given the go-ahead that the posts can be moved,
0:11:58 > 0:12:00so the gym can be put downstairs.
0:12:00 > 0:12:03Well, Caroline's obviously punching well above her weight
0:12:03 > 0:12:07if she can pick a fight with Clifton and still win.
0:12:13 > 0:12:17But they've both got a fight on their hands to get the place ready for those kids.
0:12:17 > 0:12:21It's a big job, and I wonder if it is going to take the sort of money you would win
0:12:21 > 0:12:25at a World-Title fight in Las Vegas to do up this heavy-weight property.
0:12:26 > 0:12:30What kind of budget have you got set aside for sorting the whole building out?
0:12:30 > 0:12:32About £20,000.
0:12:32 > 0:12:34Not much then, given the size.
0:12:34 > 0:12:38Well, to be honest, it's cosmetic upstairs, a lot of it's cosmetic,
0:12:38 > 0:12:40and it's not going to take a lot.
0:12:40 > 0:12:44But downstairs is where the work's going to have to be done.
0:12:44 > 0:12:47So what about a timescale for getting it all sorted?
0:12:47 > 0:12:49Three to four months.
0:12:49 > 0:12:52- For the offices and the gym? - Yeah.- Oh.
0:12:52 > 0:12:55Surprisingly, a lot of people like to get involved with boxing,
0:12:55 > 0:12:59especially if you're doing something for kids, people want to help.
0:12:59 > 0:13:05As you say, it is a good cause, putting something back, it's a perfect result.
0:13:05 > 0:13:08- Fantastic, congratulations. Good luck with it.- Thank you.
0:13:08 > 0:13:10We look forward to seeing how you get on.
0:13:15 > 0:13:21Well, what a fantastic story, and I bet you didn't think it was going to end up like that.
0:13:21 > 0:13:24A boxing ring and an office complex, it's great.
0:13:24 > 0:13:28Lots of work for Clifton and Caroline to get this place sorted out,
0:13:28 > 0:13:33and I'm a little bit concerned as to whether their budget of £20,000 will be enough.
0:13:33 > 0:13:39But at the end of the day, let's hope the project is a knockout and it doesn't end up on the ropes.
0:13:39 > 0:13:42I'm sure it won't. You can find out later in the show.
0:13:46 > 0:13:50Today I'm in the West-London suburb of Southall.
0:13:50 > 0:13:54It's one of the most vibrant, multicultural areas of the UK,
0:13:54 > 0:13:58as you can see from the number of colourful Asian shops, mosques and temples.
0:13:58 > 0:14:04Southall has excellent transport links to and from the city.
0:14:04 > 0:14:09Today I've come to see a Victorian mid-terrace house with a rear garden and three bedrooms.
0:14:09 > 0:14:15It came with a guide price of £150,000 plus, which sounds like an good buy on paper,
0:14:15 > 0:14:19however it comes with a warning that it needs modernisation.
0:14:19 > 0:14:22How much? We'll have to find out once we're inside.
0:14:28 > 0:14:31Do you know what? It's not actually that bad.
0:14:31 > 0:14:34I've seen a lot worse on this programme, I can tell you.
0:14:34 > 0:14:39The wall covering is not to everybody's taste, it definitely needs upgrading.
0:14:39 > 0:14:42Some lovely cornicing though, and a good-sized reception room.
0:14:42 > 0:14:47Nice high ceilings, some beautiful architraving, but do you know what?
0:14:47 > 0:14:52It's really cold in here, and that's because so far
0:14:52 > 0:14:54I have not seen one radiator,
0:14:54 > 0:14:57so I think there's no central heating in this place.
0:14:57 > 0:15:00It's not packed with beautiful features, as you can see.
0:15:00 > 0:15:04You may need to work on that, it needs the wallpaper stripping off,
0:15:04 > 0:15:09it needs new carpets, and as far as kitchens go, there isn't one.
0:15:09 > 0:15:12Just a little old butler sink in the corner.
0:15:12 > 0:15:16'Not only would you struggle to get all your dishes done in that sink,
0:15:16 > 0:15:20'you'd also be hard pushed it to find anywhere to let them dry.'
0:15:20 > 0:15:28# I've got to get these dishes dry...
0:15:28 > 0:15:30'This kitchen needs a complete overhaul.
0:15:30 > 0:15:34'There are no work surfaces and the cupboards are old and battered.
0:15:34 > 0:15:37'Luckily, there's a good bit of space in here to fit appliances
0:15:37 > 0:15:41'and new units, but it's only going to add to the cost.
0:15:41 > 0:15:44'Time now to check out the upstairs.'
0:15:46 > 0:15:51So upstairs, we've got what looks like three decent-sized bedrooms.
0:15:51 > 0:15:54That is a good selling point for a mid-terrace,
0:15:54 > 0:15:56and it branches out into the family market.
0:15:56 > 0:15:58In this bedroom in particular,
0:15:58 > 0:16:01you've got a really nice cast-iron fireplace down here.
0:16:01 > 0:16:03It's always lovely to see hidden features like that.
0:16:03 > 0:16:07However, I still feel like there's something missing
0:16:07 > 0:16:09apart from the radiators.
0:16:17 > 0:16:21Those fireplaces are lovely, but a house this size is going to need
0:16:21 > 0:16:26to have central heating throughout, especially for those long winters.
0:16:26 > 0:16:29The renovation budget needed here is rising every minute,
0:16:29 > 0:16:32and it's about to climb even higher.
0:16:32 > 0:16:36It doesn't take long to work out what is wrong with this property.
0:16:36 > 0:16:39There's no bathroom at all in the house.
0:16:39 > 0:16:43In fact, the only facility we do have is this.
0:16:43 > 0:16:47Gosh! Imagine, are we all spoiled these days?
0:16:47 > 0:16:50An outside toilet, and in this weather!
0:16:50 > 0:16:52It's not looking very appealing.
0:16:52 > 0:16:55I think you're going to have to sacrifice a bedroom upstairs
0:16:55 > 0:16:58to make a decent family bathroom inside.
0:16:58 > 0:17:00And of course, add to the costs,
0:17:00 > 0:17:03you've got a whole new suite plus you've got to factor in
0:17:03 > 0:17:07paying for sewerage, plumbing and electrical work upstairs.
0:17:07 > 0:17:11That will all add to the renovation budget, but it will make this house
0:17:11 > 0:17:15so much more appealing and comfortable.
0:17:15 > 0:17:20On top of all that, the garden could do with some money spent on it too.
0:17:20 > 0:17:22All is not lost on the budget front, though.
0:17:22 > 0:17:25There's the opportunity to recoup some costs
0:17:25 > 0:17:30if the buyer was willing to rent the property to a housing association.
0:17:30 > 0:17:33They might even get up to a 50% grant for the renovation,
0:17:33 > 0:17:38so this could still be a great investment at that guide price of 150,000,
0:17:38 > 0:17:41even thought it needs a lot of work.
0:17:41 > 0:17:44I asked a local estate agent along to hear his opinion.
0:17:46 > 0:17:49I didn't expect it to be this good in terms of the outside.
0:17:49 > 0:17:52It's quite deceptive, it's quite spacious.
0:17:52 > 0:17:55Also, some of the original features have been kept.
0:17:55 > 0:18:00Whether the new owners would like to retain them is another story.
0:18:00 > 0:18:04It's got two receptions, which are coming back into fashion.
0:18:04 > 0:18:06There's still scope to improve,
0:18:06 > 0:18:10like a single-story rear extension, and three really good-sized bedrooms.
0:18:11 > 0:18:18It's quite unusual, as most properties are now accommodated by a downstairs bathroom,
0:18:18 > 0:18:20but you can accommodate that upstairs,
0:18:20 > 0:18:25because the third bedroom can be partitioned off into a shower and toilet
0:18:25 > 0:18:28to accommodate the extra bathroom you need.
0:18:28 > 0:18:30And maybe have one downstairs, good for rental.
0:18:32 > 0:18:35What could this place be rented out for once renovated?
0:18:35 > 0:18:42The rental figures for this property after renovation would be £1,100 per calendar month.
0:18:42 > 0:18:47That's a healthy return, but what if the buyer decided to sell?
0:18:47 > 0:18:52The re-sale value after renovations would be in the region of £210,000 to £230,000.
0:18:54 > 0:18:58It was a shock to find out there was no bathroom at all in this house,
0:18:58 > 0:19:00not even an awful one.
0:19:00 > 0:19:02That would at least have been something to work with.
0:19:02 > 0:19:05However, there are plus points with this property -
0:19:05 > 0:19:08the house is a decent size, it's got scope for an extension at the back,
0:19:08 > 0:19:12and it would make a great family home or rented house when all the work is done.
0:19:12 > 0:19:15So let's find out who wasn't afraid to bring
0:19:15 > 0:19:20this old Southall house into the 21st century at the auction.
0:19:20 > 0:19:23Next property is Lea Road, Southall.
0:19:23 > 0:19:24Over to you, who wants to start?
0:19:24 > 0:19:26150.
0:19:26 > 0:19:30150 on my left. Anyone else?
0:19:30 > 0:19:33155. 160.
0:19:35 > 0:19:36Is that it?
0:19:36 > 0:19:39155 standing up. Anyone else?
0:19:39 > 0:19:43At £155,000, first time.
0:19:43 > 0:19:47Second time. 160, beat you.
0:19:47 > 0:19:49160. 165.
0:19:49 > 0:19:51170.
0:19:51 > 0:19:53175.
0:19:53 > 0:19:56180?
0:19:56 > 0:19:58176?
0:19:58 > 0:20:00Going down now. 176.
0:20:00 > 0:20:02175, standing up.
0:20:02 > 0:20:04176. You've got to be dynamic.
0:20:04 > 0:20:08175, standing up at the back.
0:20:08 > 0:20:11Anyone else? 175. First time.
0:20:11 > 0:20:15Second time. 176. 177, sir?
0:20:15 > 0:20:20178. 177, first time. Second time.
0:20:20 > 0:20:25Third and last time. Are you all done? Sold, 177. Well bid.
0:20:25 > 0:20:31That winning bid of 177,000 was from Jaspal, right at the back there.
0:20:31 > 0:20:37He's a local businessman who runs a courier company and is also a part-time property developer,
0:20:37 > 0:20:40so what does he plan to do with his latest purchase?
0:20:40 > 0:20:44I asked him to deliver up his ideas back at the house.
0:20:51 > 0:20:55- Jaspal, congratulations. Lovely to meet you.- Thank you very much.
0:20:55 > 0:20:58So, tell me the story behind you wanting to buy this at auction.
0:20:58 > 0:21:00I didn't really want to buy his property
0:21:00 > 0:21:05but I had seen the property prior to viewing another property which I was interested by in the auction.
0:21:05 > 0:21:08So this wasn't the house you really wanted on auction day?
0:21:08 > 0:21:12- It wasn't really, no. - But lucky for you, you did view it? - I did view it.
0:21:12 > 0:21:16I had a quick look around it and, mind you, a very quick look.
0:21:16 > 0:21:20And had that sort of idea about the house and the bedroom,
0:21:20 > 0:21:25and considering we had another property we were working on just around the corner...
0:21:25 > 0:21:27Did you set yourself a limit for this property?
0:21:27 > 0:21:31I think the limit would have been around about 185.
0:21:31 > 0:21:34OK, because you didn't go to the auction intending to buy this.
0:21:34 > 0:21:37- Do you think you may have got slightly carried away? - We probably might have,
0:21:37 > 0:21:41considering there were only two people bidding on the day, myself and somebody else.
0:21:41 > 0:21:45When the bidding actually did start, I was surprised that there weren't many hands...
0:21:45 > 0:21:51I think the auctioneer just had a job getting people to start on the bidding,
0:21:51 > 0:21:54which really enticed me to the actual lot.
0:21:54 > 0:21:57Did that excite you? "Ooh, might be able to get a bargain here?"
0:21:57 > 0:22:00Definitely, I think, yeah, we're in with a chance,
0:22:00 > 0:22:03considering it was my first purchase of a property at auction.
0:22:05 > 0:22:08He certainly got caught up in the moment at the auction,
0:22:08 > 0:22:14paying 27,000 over the guide price for a house that doesn't even have an inside toilet!
0:22:14 > 0:22:19And that's a detail that almost flushed away his chances of a mortgage.
0:22:19 > 0:22:22We did come up with a problem with the mortgage on it.
0:22:22 > 0:22:26They actually refused the mortgage because it didn't have the bathroom,
0:22:26 > 0:22:30so we went to plan B and within three, four days,
0:22:30 > 0:22:37my solicitor actually pulled off our second plan, which was really handy because we completed just on time.
0:22:37 > 0:22:44Plan B was for Jaspal to remortgage one of his other houses to release some funds,
0:22:44 > 0:22:47and then be able to pay for this one in cash.
0:22:56 > 0:22:59And what are you going to do with this place?
0:22:59 > 0:23:03It's interesting because there's quite a few things which we could do,
0:23:03 > 0:23:09so we probably will take the best option because the plan is to put this property on rent,
0:23:09 > 0:23:16because I know the prices at the moment are not what we would like to fetch on the market,
0:23:16 > 0:23:20so I think the long term would probably put it on a rental.
0:23:20 > 0:23:24- Put it on rent. - Now, you can get around £1,100 a month for something like this.
0:23:24 > 0:23:29That works out to be quite a good yield, I think about seven per cent, doesn't it?
0:23:29 > 0:23:34That's right, yes, quite good turnaround for a three-bedroom, two-reception room property.
0:23:34 > 0:23:38- So you'll rent it out as a family property?- Yes.- As a house? - As a house.
0:23:38 > 0:23:40So you need to put that bathroom back in.
0:23:40 > 0:23:44- Yeah.- Now, where is that going to go? - OK, there's two ideas.
0:23:44 > 0:23:46We're either going to put an extension on the back,
0:23:46 > 0:23:49so we can start straightaway.
0:23:49 > 0:23:50It saves time.
0:23:50 > 0:23:55The other option is upstairs, either convert one of the bedrooms into a bathroom,
0:23:55 > 0:23:58and put the additional room in the loft.
0:23:58 > 0:24:05So I have had a quick look and there is some scope, there are ways we can overcome those issues.
0:24:05 > 0:24:07- So that's an extension and a loft extension?- Yeah.
0:24:07 > 0:24:11- So that's quite a bit of work to be getting on with, isn't it? - That's right, yeah.
0:24:11 > 0:24:16- What budget are you looking at for this work?- Overall I would say we're looking at around 10,000 to 15,000.
0:24:16 > 0:24:21£15,000 seems like a tight budget for all the work Jaspal's planning,
0:24:21 > 0:24:24but it sounds like he has a trump card up his sleeve.
0:24:24 > 0:24:30I've done research with the local borough and they actually offer a grant
0:24:30 > 0:24:35to bring up properties which have been in this sort of condition,
0:24:35 > 0:24:40and they pay up to 50 per cent of the actual cost of bringing it up to a nice standard.
0:24:40 > 0:24:43Wow - that is fantastic news!
0:24:43 > 0:24:46And is that because the local borough want to bring the houses in the area
0:24:46 > 0:24:48up to a really good standard?
0:24:48 > 0:24:53Yeah, up to a nice standard, and they want to convert property which has been derelict or sitting around idle
0:24:53 > 0:24:56for a minimum of six months, which I believe this one has been.
0:24:56 > 0:25:01One snag is that you have to rent it for a three-year period,
0:25:01 > 0:25:07and you have to go through their allocated housing association recommendations.
0:25:07 > 0:25:12- So have you decided to take that on board?- I'm actually going to be inviting...
0:25:12 > 0:25:15A couple of housing agents are coming to the property, viewing it
0:25:15 > 0:25:20and giving me a figure on what they would be prepared to offer me on a rental basis.
0:25:20 > 0:25:24So on that basis, I'll do my homework and then decide on that.
0:25:24 > 0:25:28I think that's a really, really nice option for you to have here.
0:25:28 > 0:25:34That's right, considering that all the things I need doing will be included in this grant.
0:25:34 > 0:25:39- So, yeah, that's going to be a little bonus.- So that's put a smile on your face, hasn't it?- Definitely, yes.
0:25:43 > 0:25:49Jaspal is working on another development with his business partner, Salinder,
0:25:49 > 0:25:55but he has taken on this house by himself so that grant money could come in very handy.
0:25:55 > 0:26:00Meanwhile, there's another issue here that I'm personally most concerned about.
0:26:00 > 0:26:02Now, Jaspal, something I need to ask you.
0:26:02 > 0:26:06The beauty of this house, for me, is the original features that are left.
0:26:06 > 0:26:08- That's right. - Now, why are you laughing?
0:26:08 > 0:26:11- Are you going to be ripping them out?- I'm trying to...
0:26:11 > 0:26:15- I want to keep the fireplaces and chimneys.- But do you really?
0:26:15 > 0:26:20Er, I might have to because if we need to put a bathroom upstairs,
0:26:20 > 0:26:24we'll have to eat into the space of, say, two of the bedrooms. So we might need that space, I'm afraid.
0:26:24 > 0:26:29- We might have to rip them out. - So you know you're a naughty boy!- That's right, yes.
0:26:29 > 0:26:31That's a nervous laugh you've got there!
0:26:32 > 0:26:36Jaspal has certainly chosen a project and a half.
0:26:36 > 0:26:40Thank goodness he viewed this before he bought it, so the lack of bathroom wasn't a total surprise.
0:26:40 > 0:26:43Although I'm quite intrigued where he's going to put it.
0:26:43 > 0:26:48He's going to have to spend a substantial amount of money to get this place up to standard,
0:26:48 > 0:26:52and I'm not sure 10,000 to 15,000 is going to be sufficient,
0:26:52 > 0:26:55although I'm really happy he's agreed to keep the cornicing in the lounge.
0:26:55 > 0:27:01Will he stick to his promise, though? You can find out how he gets on later in the programme.
0:27:03 > 0:27:08Coming up, there are surprises in store at this maisonette-style flat in Clydebank.
0:27:08 > 0:27:11And actually, you know what? This is pretty good.
0:27:11 > 0:27:17We'll return to Southall, to see how Jaspal coped with managing two separate projects.
0:27:17 > 0:27:23It was like juggling the builders from that site to this site.
0:27:23 > 0:27:27But first, how's that renovation been going in Derby?
0:27:27 > 0:27:31Not really my cup of tea. Ask me about boxing gloves and security, I could help you.
0:27:34 > 0:27:39We're back in Derby, where this old mill building sold at auction for 148,000.
0:27:39 > 0:27:43It had three floors of space and plenty of potential.
0:27:43 > 0:27:46It was bought by Clifton and his partner, Caroline,
0:27:46 > 0:27:49who wanted to house their two businesses under one roof.
0:27:49 > 0:27:56Their security company was to be on the top floor and Clifton's latest venture, a boxing club and gym,
0:27:56 > 0:27:58on the bottom one.
0:27:58 > 0:28:01If I can keep it going and produce some champions
0:28:01 > 0:28:05and give Derby a boost and get some champions coming out of Derby...
0:28:05 > 0:28:11So, has this been the first step on the way to a championship belt?
0:28:11 > 0:28:16Three months later, we caught up with them back at the mill and the results are a real knockout.
0:28:20 > 0:28:25The first floor has been opened right up and now boasts an exercise room
0:28:25 > 0:28:31with training machines, punchbags and kit stores.
0:28:35 > 0:28:39The most action has been on the ground floor, which now houses a boxing ring.
0:28:39 > 0:28:46But it wasn't Clifton's original plan to put it down here, as he had those pillars to contend with.
0:28:46 > 0:28:52There's pillars all the way through this, but we had to take two pillars out and put two RSJs in,
0:28:52 > 0:28:55to enable us to get the boxing ring in.
0:28:55 > 0:29:00I was going to put two rings in here originally but it ain't going to be big enough.
0:29:00 > 0:29:05When I first put the RSJs in, they were probably about that low.
0:29:07 > 0:29:15So I was spitting my dummy out a little bit, and got the building regs man in
0:29:15 > 0:29:19and he said we could actually chop out some of the wood and raise it to the ceiling.
0:29:19 > 0:29:24Because, to be honest, my other boxing ring was probably about so high off the floor.
0:29:24 > 0:29:30So I had to get another ring that sat on the floor, so we'd be able to get the ring in here,
0:29:30 > 0:29:34otherwise anybody that's about 6ft 7 ain't going to be boxing in this ring
0:29:34 > 0:29:35because they'd be hitting their head on something.
0:29:41 > 0:29:45He may not have been able to fit another ring down here
0:29:45 > 0:29:48but he has found room for the gym reception and shop.
0:29:48 > 0:29:54But turning both floors into gym space has meant Clifton had to take a few more knocks than he expected.
0:29:54 > 0:30:02Because it's going to be a public building, there's loads of different legislation to it
0:30:02 > 0:30:05than it not being a public building.
0:30:05 > 0:30:07I've had to put all new fire doors in.
0:30:07 > 0:30:10I've had to put a new lighting system.
0:30:10 > 0:30:13Things like that I wasn't expecting.
0:30:13 > 0:30:15Putting the showers in.
0:30:15 > 0:30:19And then all the things that come with that, like extractor fans,
0:30:19 > 0:30:21which I'm a little bit oblivious to.
0:30:21 > 0:30:25It's not my cup of tea. Ask me about boxing gloves and security, I can help you.
0:30:25 > 0:30:27- But when it comes to...- DIY.
0:30:27 > 0:30:29DIY is not really my cup of tea, love.
0:30:29 > 0:30:33Well, it may not be his cup of tea but he's done a great job of getting
0:30:33 > 0:30:36all the work done within his target of three months.
0:30:36 > 0:30:41The gym is fully up and running but this hasn't been the only change at the old mill.
0:30:41 > 0:30:45On the top floor, Caroline has now moved into her new office.
0:30:45 > 0:30:49There weren't any serious problems sorting this place out.
0:30:49 > 0:30:54Everything now looks refreshed and Caroline has created a great working environment.
0:30:54 > 0:30:58So, everything's running smoothly up here as well, although there
0:30:58 > 0:31:01was one bit of the move that she'd rather not go through again.
0:31:01 > 0:31:03It's building up to moving the stuff.
0:31:03 > 0:31:09I think that's the hardest thing, is filing paperwork, boxing it up, getting it all ready.
0:31:09 > 0:31:16Lucky for us, a lot of the desks were already here, so we didn't have to move the desks and stuff.
0:31:16 > 0:31:17We just had to reorganise the files and everything.
0:31:17 > 0:31:22Obviously, everyone would like new toilets and new facilities
0:31:22 > 0:31:25and have a brand new office, but you have limited funds and obviously in
0:31:25 > 0:31:31years to come, if you're still here, there's a lot more that you could do upstairs. It's all ongoing, isn't it?
0:31:31 > 0:31:33It's a bit like moving into a new house.
0:31:33 > 0:31:37You can actually be in there but everything's not in the right places yet, so...
0:31:37 > 0:31:39We're getting there with it. We are getting there.
0:31:39 > 0:31:44They went over their original £20,000 budget by £5,000
0:31:44 > 0:31:47but managed to get a lot done for that outlay.
0:31:47 > 0:31:50Most of the manual work we did ourselves.
0:31:50 > 0:31:53Me, her brother, and a couple of others.
0:31:53 > 0:31:57So...a lot of it was done by...
0:31:57 > 0:31:59- Family, wasn't it?- Family, so...
0:31:59 > 0:32:02Yeah. The business is run by family members, so...
0:32:02 > 0:32:07And some of the fighters came in and gave us a hand as well, so that helps.
0:32:07 > 0:32:14Because it's their building as well. This is for the community as well, so... The boxing side of it.
0:32:14 > 0:32:16Has all the work so far paid off?
0:32:16 > 0:32:19We asked along the auctioneer who sold the property
0:32:19 > 0:32:23to assess the value of Clifton and Caroline's efforts.
0:32:23 > 0:32:27I think for the new owners' purpose it suits them extremely well.
0:32:27 > 0:32:30It gives them the floor space they need.
0:32:30 > 0:32:33They've got another company which runs from the same premises,
0:32:33 > 0:32:35confined to the top floor.
0:32:35 > 0:32:39It's in the right location, it's easy to get to.
0:32:39 > 0:32:42So it ticks a lot of boxes for them, I think.
0:32:42 > 0:32:47I would say one of the drawbacks to the building is the lack of parking facility.
0:32:47 > 0:32:49I know there are one or two parking slots that go with it,
0:32:49 > 0:32:53but I mean management would use that for visitor parking.
0:32:53 > 0:33:00It's on street and it's restricted, so that's possibly a drawback for either present use or future uses.
0:33:00 > 0:33:05When I first came and saw this, I think I suggested that the rental
0:33:05 > 0:33:11value would be somewhere around £5 to £7 a square foot, which equates to about £20,000 to £22,000 a year.
0:33:11 > 0:33:17He did a good job in refurbing it, but because the commercial market really hasn't changed
0:33:17 > 0:33:21in the intervening time, I don't think I would vary that estimate.
0:33:21 > 0:33:25So that's £20,000 to £22,000 rental per year.
0:33:25 > 0:33:32Remember, Clifton and Caroline paid £148,000 for it and have spent £25,000 on the renovation.
0:33:32 > 0:33:38So that's a fantastic potential yield of between 11% and possibly 13%.
0:33:38 > 0:33:42Absolutely brilliant. I wasn't expecting that.
0:33:42 > 0:33:46If it was a long-term agreement and we could get that over a five-year period...
0:33:46 > 0:33:51It's nice to know that, because even though we've got no plans to move as such, that there is the opportunity
0:33:51 > 0:33:56- in the future to do that, and it is going to cover the cost of everything in here anyway, isn't it?- Yeah.
0:33:56 > 0:33:59- It gives us the opportunity to be able to do something else.- Yeah.
0:33:59 > 0:34:03# Saturday night's all right for fighting
0:34:03 > 0:34:05# Get a little action in... #
0:34:06 > 0:34:13The auctioneer thinks the property could resell for £200,000, which would give Clifton and Caroline
0:34:13 > 0:34:19a healthy £28,000 pre-tax profit, but they're more than happy to stay put for now.
0:34:19 > 0:34:24To me it feels homely here, a lot more, with our offices as well.
0:34:24 > 0:34:30It just feels homely. I think the staff and obviously the people that work with. You just feel happy here.
0:34:33 > 0:34:37I'm in Clydebank on the outskirts of Glasgow.
0:34:37 > 0:34:43Clydebank's heritage is steeped in shipbuilding, so I hope it will be plain sailing at this
0:34:43 > 0:34:47property I'm here to see today, with no signs of choppy waters.
0:34:48 > 0:34:55This is Singer Street, but until 1907, it was known as Second Street.
0:34:55 > 0:34:59The council at that time decided to rename it after a famous local factory,
0:34:59 > 0:35:05the Clydebank Singer sewing-machine factory, which incredibly produced 34 million sewing-machines.
0:35:05 > 0:35:09So the big question is, will the property I'm here to see have threadbare carpets?
0:35:09 > 0:35:12Will it stitch somebody up?
0:35:12 > 0:35:15Will it NEEDLE lot of sorting out?
0:35:15 > 0:35:17Will it be all that it SEAMS?
0:35:17 > 0:35:21Maybe I should just BOBBIN and see what it's like.
0:35:23 > 0:35:26# If you sing, sing... #
0:35:26 > 0:35:31On this damp, grey day, the outside of the building is not very inspiring.
0:35:31 > 0:35:35But up on that second floor, there is a three-bedroom,
0:35:35 > 0:35:39split-level maisonette with a guide price of just £25,000-£30,000.
0:35:39 > 0:35:45The landing and backyard area are clean and well-maintained but what is it like inside?
0:35:47 > 0:35:52So, what is in store? Well, entrance hall here. Not too bad. Does not smell of damp.
0:35:52 > 0:35:54Through to the kitchen.
0:35:54 > 0:35:57You know what, this is pretty good.
0:35:57 > 0:36:02It is reasonably new units, nice bit of tiling, a good-sized space.
0:36:02 > 0:36:06Bit of a surprise, I suppose I should not say that, but not bad.
0:36:06 > 0:36:10Downstairs, kind of unusual, that is where the bedrooms are.
0:36:10 > 0:36:15But look at this. Through to a really fantastic-sized lounge.
0:36:15 > 0:36:19It has got a fireplace as a bit of a feature, nice big windows.
0:36:19 > 0:36:22All in all, pretty good.
0:36:24 > 0:36:28Down those stairs you will find not only three good-sized, fresh
0:36:28 > 0:36:33bedrooms but there is also a fantastic bathroom that looks almost brand new.
0:36:35 > 0:36:40The property has three bedrooms, so size-wise it would suit a family.
0:36:40 > 0:36:46But it is not ideal with two storeys to climb and the lack of a garden both real drawbacks.
0:36:46 > 0:36:51Even so, I think this could be a great opportunity for someone looking to rent it out.
0:36:51 > 0:36:58But what does a local estate agent think? I asked one for his views.
0:36:58 > 0:37:00Clydebank is an up and coming area.
0:37:00 > 0:37:05The proximity to Glasgow city centre, approximately five miles, it makes it
0:37:05 > 0:37:09an area which is popular for commuting back and forth
0:37:09 > 0:37:11to the city centre.
0:37:11 > 0:37:15And Glasgow airport within 15 to 20 minutes' drive.
0:37:15 > 0:37:19From what I have seen already, it is mainly cosmetic that it needs.
0:37:19 > 0:37:24The electrics look a bit dated, so possibly that could be updated to a new standard.
0:37:24 > 0:37:28But apart from that, decoration would be enough.
0:37:28 > 0:37:33All good so far. But what about this maisonette's letting potential?
0:37:35 > 0:37:41The rental market in the Clydebank area, with the new college being built, there is a rental market.
0:37:41 > 0:37:45Obviously there is a lack of local housing as well.
0:37:45 > 0:37:49So there is a great rental market in the Clydebank area.
0:37:49 > 0:37:53So there is a healthy demand for renting properties - exactly what a buyer wants to hear.
0:37:53 > 0:37:56But what kind of rent could this place generate?
0:37:58 > 0:38:02I would be able to achieve approximately £400 a month.
0:38:02 > 0:38:06With some renovation work, he thinks the property could resell
0:38:06 > 0:38:11for about £45,000, which is £15,000-£20,000 over its guide price.
0:38:11 > 0:38:18So, keeping the renovation costs low would be key to maximising any potential profit here.
0:38:18 > 0:38:25There is a strong rental demand here and for a guide price of 25,000-30,000 quid,
0:38:25 > 0:38:28for a flat like that which does not need much work doing to it,
0:38:28 > 0:38:30I think it is a very strong proposition.
0:38:30 > 0:38:32Let's see who fancies it when it went to the auction.
0:38:32 > 0:38:34The next available lot is lot number two,
0:38:34 > 0:38:39a three-bedroom maisonette style flat in Stinger Street in Clydebank.
0:38:39 > 0:38:44Looking for £20,000. £20,000, 21.
0:38:44 > 0:38:4621 it is. 22? £22,000.
0:38:46 > 0:38:51£23,000, I have got. Give you a chance at 24, sir?
0:38:51 > 0:38:55No, shakes his head. £23,000 I have got against you all at the moment.
0:38:55 > 0:38:58I'm looking for £24,000.
0:38:58 > 0:39:02£24,000, are we, back in a new place here at £24,000.
0:39:02 > 0:39:0725. 26? 26, it is, £26,000.
0:39:07 > 0:39:10Are we all done then at £26,000?
0:39:10 > 0:39:15A new player at 27. £27,000. 28, sir?
0:39:15 > 0:39:17£28,000. Come back at 29, sir.
0:39:17 > 0:39:21£29,000. Make it 30.
0:39:21 > 0:39:23£30,000 it is. Thank you very much.
0:39:23 > 0:39:26I've got your bid at £30,000. Are you coming back at 31, sir?
0:39:26 > 0:39:28No, definitely this time?
0:39:28 > 0:39:32Definitely. OK, £30,000. Are we all done, last chance now.
0:39:32 > 0:39:34Going to sell at £30,000 to the gentleman here.
0:39:34 > 0:39:39At £30,000, last chance. New place, 31. That's £31,000.
0:39:39 > 0:39:46I'll take that 500 from you if you want, sir. £31,500. 32? 32 it is.
0:39:46 > 0:39:48£32,000 against you at the moment.
0:39:48 > 0:39:5432,500? £33,000, yes. 500?
0:39:54 > 0:39:55Yes, 33,500.
0:39:55 > 0:39:58£34,000.
0:39:58 > 0:40:01Need to hurry you, sir. 34.5?
0:40:01 > 0:40:03£35,000, I am looking for.
0:40:03 > 0:40:0435? 35, it is.
0:40:05 > 0:40:0735,500. Coming back?
0:40:10 > 0:40:11Needs to be 36.
0:40:11 > 0:40:14Just in time there, £36,000.
0:40:17 > 0:40:2136,500. No, definitely not. 36,500.
0:40:21 > 0:40:25I am going to sell. £36,500, last chance.
0:40:28 > 0:40:30Sold at £36,500. Well done, sir.
0:40:33 > 0:40:38That winning bid of £36,500 was made by local businessman, Mohammed.
0:40:38 > 0:40:42He runs a local grocer's shop and he and his wife Shafkhat
0:40:42 > 0:40:45have lived in the area for more than 30 years.
0:40:45 > 0:40:49They have four daughters and bought this property as an investment for their future.
0:40:49 > 0:40:52I caught up with them to find out more.
0:40:52 > 0:40:57Lovely to meet you both. Congratulations. That was a bit of a marathon auction, wasn't it?
0:40:57 > 0:41:00- Certainly was.- Were you happy with what you paid in the end?
0:41:00 > 0:41:03Overall, it was not bad.
0:41:03 > 0:41:06The prospectus slightly less, but that is the way it went.
0:41:06 > 0:41:09So tell me why you wanted to buy the flat.
0:41:10 > 0:41:15A three-bedroomed one we thought would be easier to rent in the area,
0:41:15 > 0:41:21because a lot of people look for a three-bedroom.
0:41:21 > 0:41:23And my experience in the past.
0:41:23 > 0:41:28So when it came up three-bedroomed, I thought it would be a good investment if we can get it.
0:41:30 > 0:41:36Mohammed's long-term plan is to rent it out until his daughters are at university.
0:41:36 > 0:41:39Then they can move in and after that, it should be a nice
0:41:39 > 0:41:42little nest-egg to sell, further down the line.
0:41:42 > 0:41:45What kind of budget have you got for doing the work?
0:41:45 > 0:41:47That's his department!
0:41:47 > 0:41:51Maximum about £5,000, should not be any more than that.
0:41:51 > 0:41:53Just wait and see once we start doing the work.
0:41:53 > 0:41:58Hopefully that should be enough, because most of the work is done,
0:41:58 > 0:42:02there is nothing structural. Mainly tidying up.
0:42:02 > 0:42:06- Any idea how long it will take? - I think four weeks should be enough.
0:42:06 > 0:42:11- Four weeks, so quite tight.- Yes, I think people are ready to do the work and we have the material ready.
0:42:11 > 0:42:15So four weeks should be enough.
0:42:15 > 0:42:18And are you both going to be involved in any of the work?
0:42:18 > 0:42:22Basically, just bringing the material in! Apart from that,
0:42:22 > 0:42:25- just the time. - So you're not going to be involved?
0:42:25 > 0:42:29No, I do not know anything about decorating or doing this.
0:42:31 > 0:42:32At least she is honest!
0:42:32 > 0:42:35With four kids to look after and a business to run,
0:42:35 > 0:42:39it would be much easier for them to bring in a team of decorators.
0:42:39 > 0:42:46Meanwhile, even though it will be a few years before the girls move in, by the sound of it they cannot wait.
0:42:46 > 0:42:50They were so excited and that is for their future investment.
0:42:50 > 0:42:53They all want to go to uni.
0:42:53 > 0:42:56- Do you see this as a bit of an investment for them?- Yes.
0:42:56 > 0:43:00That is the main idea.
0:43:00 > 0:43:03Good luck with it all. We look forward to seeing how you get on.
0:43:03 > 0:43:06- Thanks very much.- Thank you.
0:43:06 > 0:43:09So, Mohammed and Shafkhat
0:43:09 > 0:43:12adding this to their rental property portfolio.
0:43:12 > 0:43:15The only question is, will they do it in their timescale?
0:43:15 > 0:43:16After all, they have a shop to run.
0:43:16 > 0:43:19You can find out how they get on later in the show.
0:43:22 > 0:43:25You know what they say, time is money.
0:43:25 > 0:43:30Have our brave buyers run out of both or are they bang on schedule?
0:43:30 > 0:43:32Let us find out.
0:43:37 > 0:43:40We are back in Southall, where local businessman Jaspal
0:43:40 > 0:43:45bought his three-bedroom terraced house for £177,000 at auction.
0:43:45 > 0:43:48It needed a lot of renovation and some of his plans were
0:43:48 > 0:43:54possibly going to mean losing some of those great period features.
0:43:54 > 0:43:58If we need to put a bathroom upstairs we will have to eat into the space
0:43:58 > 0:44:02of two of the bedrooms, so we might need the space. We might have to rip them out.
0:44:02 > 0:44:06- You know you are naughty boy already?- That is right. - That's a nervous laugh!
0:44:08 > 0:44:12So, has he disappointed me and ripped out those fireplaces?
0:44:12 > 0:44:17We caught up with him four months later, to see if he was going to be in my bad books!
0:44:26 > 0:44:32Well, he has not just lost a few period features, he has got rid of them all.
0:44:32 > 0:44:38All of the fireplaces and chimneys have been removed from each room to give more space.
0:44:38 > 0:44:41So I think it is definitely the naughty step for Jaspal.
0:44:42 > 0:44:45One of the main layout alterations has been upstairs.
0:44:45 > 0:44:51Before, the only toilet was outside, but that has all changed.
0:44:51 > 0:44:55What has changed here is that we have rejigged this bedroom here
0:44:55 > 0:44:58and introduced a bit of bathroom and toilet.
0:44:58 > 0:45:00But I think it has worked out quite good, because we still
0:45:00 > 0:45:05have a fair-sized bathroom and we still have a large-sized rear bedroom.
0:45:05 > 0:45:09And looking at it, we could sell it to a family
0:45:09 > 0:45:13- or put it on rental, it is ideal with first floor bathroom and toilet.- ???
0:45:13 > 0:45:19was thinking of an extension out the back but has opted for a loft extension instead.
0:45:19 > 0:45:22Although there is room for a bed up here, until he gets building
0:45:22 > 0:45:26regulations signed off, he cannot officially call it a fourth bedroom.
0:45:26 > 0:45:30But it is still a great space for storage or a little office.
0:45:30 > 0:45:36Aside from missing a toilet, the house was also lacking a kitchen.
0:45:36 > 0:45:41But I am glad to report that he has been busy on that as well.
0:45:41 > 0:45:45Quite a big change here. We had the larder just through this door here.
0:45:45 > 0:45:50Knocked the larder out and made a downstairs bathroom with a shower room and a WC.
0:45:50 > 0:45:54Blocked the outside entrance from the garden.
0:45:54 > 0:46:02Taken the chimney breast off to give us that extra bit of room for units and to widen the kitchen up.
0:46:02 > 0:46:05As you can see, he
0:46:05 > 0:46:07has not quite finished all the work in the house.
0:46:07 > 0:46:11But bear in mind that he had to rewire, re-plaster
0:46:11 > 0:46:15and re-floor throughout. He has even knocked down the lean-to
0:46:15 > 0:46:19out the back to open up the garden space for future development.
0:46:19 > 0:46:22He had hoped to have everything done in
0:46:22 > 0:46:26two months but it will be more like four before everything is complete.
0:46:26 > 0:46:30The fact that he was renovating another house with his business partner
0:46:30 > 0:46:32did not help the schedule.
0:46:32 > 0:46:40We had another project which was happening at the same time so it was like juggling builders from
0:46:40 > 0:46:46that site to this site, so that is probably why it has taken that bit more than I expected.
0:46:46 > 0:46:52His original budget of between £10,000 - £15,000 for the renovation has also increased.
0:46:52 > 0:46:56He reckons he will come in nearer 25,000.
0:46:56 > 0:47:03The overspend is just that we had to do a lot of the necessary things.
0:47:05 > 0:47:09There are no short cuts or cutting corners.
0:47:09 > 0:47:15We had to go ahead with it and I think that has definitely made a reflection on the final part of the
0:47:15 > 0:47:18finishing of this property.
0:47:18 > 0:47:22Originally, he hoped to take advantage of a council grant but he
0:47:22 > 0:47:26has now decided to sell rather than rent out.
0:47:26 > 0:47:31So he would not be eligible, but he has already got some potential buyers.
0:47:31 > 0:47:37We haven't marketed the property officially, but we have had two offers on the
0:47:37 > 0:47:40property, which is a good sign.
0:47:40 > 0:47:43It certainly is. We asked
0:47:43 > 0:47:48two local estate agents along to look at the house, to see how much he could sell it for.
0:47:50 > 0:47:53Yeah, I like what he's done. I like the way that he's created a bathroom
0:47:53 > 0:47:56upstairs, and obviously, he's created another bedroom into the loft area.
0:47:56 > 0:48:01Downstairs, he's got a downstairs toilet that will appeal to a lot
0:48:01 > 0:48:05of families that have got small children.
0:48:05 > 0:48:08There have been good changes, totally renovated the place.
0:48:08 > 0:48:13It's good that it's got the rewiring, re-plumbing, these are very important.
0:48:13 > 0:48:16Also, I understand that he's taken some of the period features out,
0:48:16 > 0:48:20which does create more space and in this market, it's not too bad.
0:48:20 > 0:48:23I don't think they will be missed, let's put it that way.
0:48:23 > 0:48:26I think anyone coming in to view the property, you know, will feel that
0:48:26 > 0:48:31there's nothing that they need to do, minus a few personal touches.
0:48:31 > 0:48:35I think it's important that he's incorporated another bathroom in,
0:48:35 > 0:48:39to appeal to the letting market as well as residential.
0:48:39 > 0:48:43I think in any house, even if you've got kids or guests, two bathrooms is essential nowadays.
0:48:46 > 0:48:53It sounds like Jaspal has done all the right things so far, but what about his work in the attic?
0:48:53 > 0:49:00In my opinion, the loft is basically a masterstroke, in my opinion, because first of all, he's actually
0:49:00 > 0:49:05using dead space, and also, it will bring in other people who would say, look, it's got a skylight window,
0:49:05 > 0:49:09might use it for storage or putting other stuff in, or maybe even an office, occasionally.
0:49:09 > 0:49:11So I think it has added value, definitely.
0:49:11 > 0:49:14Yeah, the loft room that's actually been created
0:49:14 > 0:49:17will definitely benefit the vendor, certainly monetary values.
0:49:17 > 0:49:20Once again, if you're attracting big families around here, then they are
0:49:20 > 0:49:22always looking for that fourth bedroom.
0:49:22 > 0:49:26However, until Jaspal gets the building regulations signed off,
0:49:26 > 0:49:29he'll only be able to market this as a three-bedroomed house.
0:49:29 > 0:49:32He spent £25,000 on it,
0:49:32 > 0:49:38so on top of the 177,000 he paid for it at auction, that makes £202,000.
0:49:38 > 0:49:43So how much could he hope to achieve when he puts it up for sale?
0:49:43 > 0:49:48In my opinion, as a three-bedroom mid-terrace house, I would suggest a marketing price of
0:49:48 > 0:49:52£234,950, and I believe that you will get very close to that price as well.
0:49:52 > 0:49:57In the current market, I'd valued the property it at between £230,000 and £240,000.
0:49:57 > 0:50:01Yeah. Pleased with those valuations, and it's coming, the offers
0:50:01 > 0:50:06I had on the property are reflecting what the agents have predicted.
0:50:06 > 0:50:13In fact, Jaspal did accept one of those offers and sold the flat for 235,000. His total spent
0:50:13 > 0:50:20here has been 207,000, so that's an impressive £28,000 pre-tax profit,
0:50:20 > 0:50:23minus the other usual deductions.
0:50:24 > 0:50:29So, it's no great surprise to hear that he is very happy with the project.
0:50:29 > 0:50:35I think it was worthwhile, good experience, and considering the
0:50:35 > 0:50:38final valuation of the property, I think, yes, definitely well worth it.
0:50:41 > 0:50:47We are back in Clydebank at this second floor maisonette staff flat.
0:50:47 > 0:50:52It was bought by Mohammed and Shafkhat for £36,500.
0:50:52 > 0:50:54There were going to rent it out for now, but saw it
0:50:54 > 0:50:57ultimately as an investment for their daughters' future.
0:50:57 > 0:51:01It didn't need much work, though by the sounds a bit, Mohammed was on his own with
0:51:01 > 0:51:04anything that did need doing. You are not going to be involved?
0:51:04 > 0:51:09No. I don't know anything about decorating.
0:51:09 > 0:51:15But three months later, it doesn't appear as though very much decorating has taken place.
0:51:24 > 0:51:27Well, it may not look like it, but there has been work going on.
0:51:27 > 0:51:30The skirting boards have all been fixed, the stairs have
0:51:30 > 0:51:37been carpeted, and the polystyrene ceiling tiles and the living room have been removed and replaced.
0:51:37 > 0:51:40At first glance, the bathroom seems untouched, but actually,
0:51:40 > 0:51:44there was a lot of work done trying to mend a mystery leak there.
0:51:44 > 0:51:48So basically, the bathroom, we realised there was a leak
0:51:48 > 0:51:53in the bathroom, and we had to lift the tiles
0:51:53 > 0:51:56to look at the floorboards underneath, all the pipe-work,
0:51:56 > 0:51:59then put it all together again, retiled it.
0:51:59 > 0:52:02Then we found that there was a leak in the system,
0:52:02 > 0:52:08so we have to get that fixed and the leak was in the kitchen,
0:52:08 > 0:52:10so a similar process there.
0:52:10 > 0:52:15Lift the tiles, piping and put it all back together again.
0:52:15 > 0:52:17So the bathroom leak was fixed successfully, but it
0:52:17 > 0:52:23turned out that wasn't the only leak Mohammed would have to plug.
0:52:23 > 0:52:31When we got an engineer in for a boiler service and a heating service, he said we were
0:52:31 > 0:52:36losing the pressure in the boiler, and he said the leak is somewhere, so we started looking for it.
0:52:36 > 0:52:39One of them was upstairs in hall and the kitchen, then when we fixed
0:52:39 > 0:52:44that, there were still a leak somewhere, then we had to start having to look under the stairs.
0:53:00 > 0:53:06So, with all the leaks now found and fixed and decorating finished, the property is ready to rent, but
0:53:06 > 0:53:14Mohammed has decided not to manage the rental himself, as his grocery shop takes up so much of his time.
0:53:14 > 0:53:20So much paperwork and red tape, I can't do everything myself, so I have decided to get estate agents,
0:53:20 > 0:53:24and offload my paperwork.
0:53:24 > 0:53:28Hopefully, it will get to the stage where we see how it goes.
0:53:28 > 0:53:32If I can do it myself, I would prefer that, but we will see how I go.
0:53:32 > 0:53:36He's a busy man all right, but even whilst overseeing the renovation
0:53:36 > 0:53:40work here, Mohammed knew he could rely on his family for help.
0:53:52 > 0:53:58I am always with him, whenever he needs help in the shop, in the house, in here.
0:53:58 > 0:54:00I only came a few times to see what's going on.
0:54:00 > 0:54:07The girls were involved and they were so, like, excited.
0:54:07 > 0:54:12Not only were the kids happy, but so were Mohammed and Shafkhat,
0:54:12 > 0:54:17because they managed to do the job within the original £5,000 budget.
0:54:17 > 0:54:20But the extra gas and water pipe-work pushed them two or three weeks
0:54:20 > 0:54:23over their original timescale of a month.
0:54:23 > 0:54:25How much value has all the work added to the property?
0:54:25 > 0:54:30We asked two local estate agents for their opinion.
0:54:30 > 0:54:34Looking at it, it would appear to have been well decorated.
0:54:34 > 0:54:38It's very fresh, very clean, ready to move into.
0:54:39 > 0:54:44My first impressions of the property it out that it's been done up to a basic standard.
0:54:44 > 0:54:47The problem is that there's a lot of property on the market at present,
0:54:47 > 0:54:52which means that there's more choice for either purchasing or rental.
0:54:52 > 0:54:57The location is ideal in terms of public transport,
0:54:57 > 0:55:03shops and access to schools, and all in all, the area is coming up.
0:55:03 > 0:55:07It's not quite gentrified, but it's certainly
0:55:07 > 0:55:12coming up from the developments by the local housing situations.
0:55:14 > 0:55:20So, what could a three-bedroom maisonette style flat in this area achieve on the rental market?
0:55:20 > 0:55:24The rental market in Clydebank is fairly buoyant just now,
0:55:24 > 0:55:32and this property shouldn't have any difficulty in attracting a rental of around £500 per calendar month.
0:55:32 > 0:55:35The first area I would look at is the housing benefit market,
0:55:35 > 0:55:40where that would provide per calendar month approximately £550.
0:55:40 > 0:55:47- That's good.- Good. Sounds good.- Kind of price I expected, anyway, between five and six, so that's quite good.
0:55:47 > 0:55:53The other area that's open to the owner of the property is the college.
0:55:53 > 0:55:57You could have three students in that at approximately £40 or £50 per week.
0:55:57 > 0:56:01The problem there would be the multi-occupancy. That could create problems.
0:56:01 > 0:56:07I don't want to go that route, and students sometimes, they don't look after properties that well.
0:56:07 > 0:56:09I'm not saying all of them are like that. I would prefer a family.
0:56:09 > 0:56:13Families normally look after them better as well.
0:56:15 > 0:56:19So, they're aiming to rent out to a family.
0:56:19 > 0:56:22If they do earn a rental income of between £500 and £600 a month,
0:56:22 > 0:56:30then, giving their total spend here of around £42,000, that would mean an amazing yield of over 14%.
0:56:30 > 0:56:33So the flat should prove to be a great investment,
0:56:33 > 0:56:37until the girls have grown up and are ready to move in themselves.
0:56:37 > 0:56:42Perhaps by then, Mohammed will be a full-time property developer.
0:56:44 > 0:56:49Maybe some day if I want to pack up the job and the shop, at least I've got another option open.
0:56:52 > 0:56:58Well, we hope you enjoyed today's trio of auction purchases, and that they gave you food for thought.
0:56:58 > 0:57:02And we'll see you again soon for more Homes Under The Hammer.
0:57:09 > 0:57:12Subtitles by Red Bee Media
0:57:12 > 0:57:15Email bbc@subtitling.co.uk