Episode 34 Homes Under the Hammer


Episode 34

Martin Roberts and Lucy Alexander visit a house in Kent, a semi-detached property in Luton and a four-bed terrace in Plymouth.


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Transcript


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Over the years, we've witnessed the ups and downs of the housing market.

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Whether it's an investment or a home you want,

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you want to make sure there are more ups than downs.

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So make sure you buy your house at the right price.

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One way to do that is visit an auction room and buy your house under the hammer!

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We've all read about the ever-changing property market.

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But doing a deal at auction is one of the simplest processes.

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Hand goes up. Hammer comes down. Bought!

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That's what happened when today's properties were sold.

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Coming up... In Kent, there's a good-sized house that could be pretty APPEALING.

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Wallpaper stripping... Not too much of a problem.

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I find a semi in Luton that's not exactly touchy-feely.

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There is artex slapped on everywhere.

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You can see it all dragging down the walls.

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And in Plymouth, this four-bed terrace

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has potential for more bedrooms.

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That is where you are going to make your money with this property.

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These properties were sold at auction.

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Find out who bought them and what they paid when they went under the hammer.

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It's yours, madam.

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I'm in Crayford, North Kent, 15 miles east of London.

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The town has great commuter links and has had a facelift over the last few years.

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So this is an attractive spot to buy property.

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What do you get for a guide price of £215 to £225,000?

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Well, potentially this. It's a pretty reasonable two-bedroom semi-detached.

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Close to the shops, good transport links. Not bad at all.

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But it gets better, because not only do you get that semi-detached property,

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you get the two-bedroom semi-detached property that's attached to it.

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Now I've got you interested.

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These two semis have been joined together

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to create one large detached house.

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From here, I think it looks wonderful.

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However, on closer inspection, it looks like it could do with new windows

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and maybe a splash of paint.

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DOOR CLANGS

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Not the best of designs. Er, OK...

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If you can get through the door,

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past the meter cupboard... I don't know!

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..into the front living room... Oh, dear, oh, dear!

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This...

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..is a mildew problem. Wow.

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My guess is that there's been some sort of a water leak in the past.

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You can see the joints on the ceiling, the water's been pouring through there.

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It's gone down the walls, it's probably gone under the floors.

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It doesn't smell damp in here.

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The floor has had a chance to dry, but you don't know what damage has been done.

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My guess is, a water tank in the loft has leaked and this has flooded down here.

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But the whole room has flooded.

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I mean, wallpaper stripping... Not too much of a problem.

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I've done my bit to help the restoration!

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But then through into the kitchen,

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you go from mildew disaster into, well, Swedish log cabin!

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Is it a kitchen? Is it a sauna? I don't know! All this woodwork!

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It's dark, it's dingy, and that's not helped by the wood.

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But it's not a bad size. Lots of hidden cupboards and things like that.

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But, realistically, you're looking at taking this out and replacing it.

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But all in all, a very good start. Well, apart from the mildew.

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There are four reception rooms downstairs

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and it looks like the kitchen of one of the old semis is now a bathroom.

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The house will need to be cleared and modernised throughout.

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But for the price, this is a big place,

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so I'm seeing big potential.

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So upstairs and...

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Whoa, whoa, whoa! The damage from the water is even more apparent.

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My guess is that the water tank is actually above me,

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and the ball valve that lets the water in has corroded, maybe even just the washer's gone,

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that's resulted in the tank overflowing,

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flooding the house and causing the damage you can see.

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My concern is the damage you can't see. The ironic thing, of course,

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is that it was all caused, probably, by a 25p washer.

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What have we got? Landing here. Bathroom there. Dark and dingy. Definitely needs to be sorted out.

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Bedroom here. Then it gets very interesting, because...

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..as I mentioned before, this is two properties that are being converted into one.

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What they haven't done well is maximise the space.

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They've knocked down the wall and put corridors through.

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If you're going to do this, you want to create big, open spaces,

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not these tiny little rooms, that don't really work for me.

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However, that does throw up some interesting possibilities.

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It looks as though not enough thought went into the conversion.

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The two original houses were simply joined by some doorways.

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This could be beneficial if the buyer decided to reinstate the two properties -

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a way to maximise resale value.

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Or with a bit of creative thinking and some cash,

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the two floors could be opened up to consolidate some of those smaller spaces.

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It would be three beds upstairs, two large receptions downstairs,

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plus a large modern kitchen.

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So it seems there's great scope.

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And there's another bonus at the back.

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Well, no, I haven't wandered out into a local woodland.

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This is actually the back garden of the property

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and it is an absolutely delight.

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Mature trees, shrubs,

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lots and lots of work gone into creating paved areas, pathways through the trees.

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It is absolutely beautiful.

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If you set about trying to do this, it would take you 100 years

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and probably £20,000 in terms of landscaping fees.

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Real bonus.

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So at what was a guide price of £215 to £225,000 for all this,

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I think it was a real opportunity for someone.

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I asked a local estate agent what he thought.

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My first impressions of the home are,

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very distinctive, nice-looking property from the outside,

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almost cottagey.

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There's some fairly bad mildew and damp round the house.

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The ceilings will probably have to be replaced,

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walls stripped right back to the bare brick again

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and replastered and rendered again.

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I would suggest that the property be divided back into separate homes,

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put a front door on the other part of the house,

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create the walls dividing the house between into two

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and then fully refurbish the house again.

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How much rent could each semi-detached house earn?

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For rental purposes, I would suggest a marketing price of around £850 per calendar month.

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Bearing in mind the guide price of £215 to £225,000,

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what might it sell on for?

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After renovation, each property would be worth approximately £250,000 per property.

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Well, a lot of work to be done, but I think there's potential for big profits with this place.

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The key to that is to turn it back from one property into two.

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You don't know how much water damage has been done,

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but you'll find that out once you rip the place apart.

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Let's see who fancied the opportunity when it went under the hammer.

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Lot 65 is the two properties.

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The big property that should be semis.

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A guide of 215, 220. Is there a bid of 200,000 in the room?

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200 I've got. And five. 205.

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205. And ten is against you, madam.

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210, it's with you again. 215. 215 I've got.

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220 now.

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220 unbid. And 25. 225.

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And 30. 230. And five. 235.

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Still worth it. £235,000.

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232 I've got in time. 234. 234. And six.

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236.

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£234,000 I've got, then.

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Is it going to be sold for the first time?

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Second time at £234,000.

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Third and final time, if you're sure you're all done.

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Well done. It's yours for £234,000.

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For £234,000,

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the successful bidder was Dawn.

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She bought the house with her son, John, and her husband,

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along with John's girlfriend and her parents.

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So it's a real family investment.

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They've bought the property to develop and sell on. All are hoping to make a profit.

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-Dawn, John, lovely to meet you both.

-And you.

-Congratulations!

-Thanks.

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-This is an interesting project, isn't it?!

-Just slightly!

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-This is your son, John.

-This is my baby.

-Your baby!

-I had four of these!

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-You're the youngest?

-I am.

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What's your involvement, John?

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-I will be doing all the doing-up to the place.

-Right.

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It's a good project. Can't wait to get stuck in.

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-What got you into property?

-I've been a qualified carpenter for about six, seven years.

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-You're looking at him proudly!

-I am very proud of my John. Very proud.

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I'm proud of all my boys! But John most of all.

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Aww! Why?

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Well, John was seriously ill a few years ago.

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-Really?

-We've nearly lost John many times.

-Really?!

-Yes.

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I had acute myeloid leukaemia seven years ago.

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-You had leukaemia?

-They gave me an hour to live.

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-What?

-They said, "He's got no chance." I went to six stone in three weeks.

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And here you are today,

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-standing, talking, about to embark on a project!

-Absolutely!

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-How cool is that?

-It's brilliant. Absolutely brilliant.

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Congratulations! So there's more in this than just buying a house.

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BOTH: Yes.

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What's the big picture? Keep it as one house, convert it into two?

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It's going to go back into two. We can make more money that way.

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In terms of converting it into two, given that it was originally two, not too massive a job?

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-It's not too bad. It should be quite easy.

-Right.

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-Who's going to do the work?

-I've got a couple of people who work alongside me,

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but anyone that I need to pull in, I will do.

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But I'll oversee most of the work.

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-But you're doing most of it.

-I'll do most of it myself.

-You'll have an electrician.

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We've got to have an electrician.

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My brother's a gasfitter, so he can do the pipe work.

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-Other than that...

-And Ian does windows.

-Yes, my other brother does windows!

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And how much do you think it's going to cost?

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I originally said 40 to 50,000.

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-Er, but the thing is...

-I'm a shopaholic!

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This is it! But we think that there's enough profit in it.

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Anything we come up... If we make a profit, it's a bonus. It's the first one for us.

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Hopefully, we'll make a lot of money.

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I think you will. By going down the splitting-into-two route, most definitely.

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So 50's your maximum ballpark? That's a healthy budget.

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If it goes over, it goes over, but we don't think it will.

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It certainly looks as though John has the wherewithal to tackle this massive project,

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so I think his family are in safe hands.

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-If it's broken, fix it.

-That's it. You can put anything right.

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Even at a cost, it doesn't matter. If something breaks, you can fix it.

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-Including yourself.

-That's it! I've learnt that.

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My little trip has taught me a lot in life.

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And, er, it's only up from now, hopefully.

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MUSIC: "Fix You" by Coldplay

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# And I will try

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# To fix you #

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-Well, listen, brilliant story. Congratulations.

-Thanks.

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Good luck. We look forward to seeing how you get on.

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-Cheers.

-Lovely. BOTH: Thanks.

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Well, what a positive and inspirational story all round.

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I'm delighted for Dawn and John that they've taken on this project,

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along with their respective families.

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Lots of work to do, though. I am concerned by the water damage, which they haven't discovered yet.

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But overall, we wish them all the best.

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You can find out how they get on later in the show.

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I'm in Luton, Bedfordshire,

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known for its international airport, the fifth busiest in the country.

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I just hope that our next property can take off, too!

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And here it is! It's a three-bed semi-detached house,

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and the guide just £85,000.

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OK, it might not be all-singing and dancing from the outside,

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but there is a party wall!

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Let's see what it's like inside.

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Fingers crossed that it's a real high-flyer

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and not a Plane Jane!

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So inside... There's quite an interesting use of texture in this place!

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It's fair to say there is artex slapped on everywhere.

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You can see it all dragging down the walls.

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Lots of swirly patterns on the ceiling.

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Whoever takes this on has got to think about skimming over this

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and giving it a much more modern feel.

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Big lounge. Lovely big windows. Bright feeling to it.

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That's fantastic.

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And downstairs there's a bathroom.

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I can only see a sink and a bath. No toilet.

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I'd like to think it could become a three-piece suite.

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Maybe underneath the stairs there's enough room to put a WC. That would open this space up.

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And through here, a good-sized kitchen.

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Not bad at all. Access to the garden.

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It's all very '70s, it's dated, the tiles need ripping off,

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but once you have installed something new, clean and modern, you've got yourself a great house.

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# I've got potential #

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You could definitely make this something special.

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All the rooms offer lovely proportions.

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French doors at the end of the lounge would be a welcome addition.

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Blocking up the door in the kitchen would allow more space for appliances and units.

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So up here, we've got three bedrooms,

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and I'm glad to say there is a toilet!

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And its next-door neighbour is the sink!

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Not very practical to have the sink there, with the wall and a toilet.

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I think what you need to do in this property is, knock this wall down

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and perhaps have this as a shower room

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so you do offer some washing facilities upstairs.

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I think this house will be more functional once you've done that.

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The bedrooms are all good sizes and the garden is fabulous.

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It backs onto a school playing field,

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so is not overlooked by other property.

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That's a big selling point and means a fantastic sense of space.

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When looking to invest, location and transport links are at the top of my list.

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Transport couldn't be better here in Luton.

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There's an excellent fast rail service to London and Brighton.

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The M1 is at the end of the street. Plus, you've got the airport.

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Road, rail and air. Luton has it all.

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Luton Airport employs over 500 people directly

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and around 8,000 indirectly.

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They all need homes, which is great news for investors.

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The airport is a five-minute drive from this place,

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making it perfect for employees there.

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What does the local estate agent make of it?

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It's a good house, actually. Good location.

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Obviously needs a little bit of work inside. Full refurb, I would say.

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Very good saleable area, as well.

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This could be quite a money-spinner. Let's talk figures.

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When renovated, I would say you're probably looking about 145, 150 on the market.

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With the airport so close and many employees seeking accommodation,

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letting has to be a tempting option.

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I would rent this out between 650 and 700 a month.

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So, will the property on Keepers Close be a keeper?

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Personally, I think it's a good one to go for.

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It doesn't require too much work, and the airport and transport links

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mean the rental market is strong in this area.

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Let's see who agreed with me as we go to auction.

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Who wants to give me a start? 90,000?

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If not, you tell me. We'll start there. 70 I've got.

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75. 80,000.

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85?

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90,000. 95.

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100,000? He knows the value. 100 I've got.

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105? 110. 115.

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115. New place. 116.

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117. 118? 118, somebody want to come in?

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118. Back in. 119. 120?

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-120. 121.

-120 and a half.

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120 and a half. 121?

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You might have done it. It's with you. 120,500.

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It's going to the gentleman at the front. Anybody else? 120,500 for the first...

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120,500 for the second...

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120,500 for the third and final time.

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All done. Sold. 120,500. Well bought.

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That successful bid of 120,500

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came from Matt and his partner, Jane.

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Matt owned a printing business which closed due to the recession,

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so he's now moving into property developing.

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I met the couple back at the house

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to hear their thoughts on their first auction purchase.

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Guys, congratulations.

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-You paid 120,000 AND £500!

-Correct.

-Let's not forget that!

-No.

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-Happy with the price?

-It went a little bit over what I'd intended.

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I was going to stop at 120, but it got so close

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I thought I'd give it the extra 500 and I ended up getting it.

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Why do you guys want to buy a house?

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I need to do something, to be frank. Our business, I've had to wind up in the summer.

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I've been looking to do other things.

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Unfortunately, it's a difficult age to change career.

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I'd always enjoyed property and DIY,

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so I thought it'd be a good chance to combine the two and, hopefully, earn a living.

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Is this going to be a new career for you?

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I've got a couple of properties, and what with Jane's, that's three that we own.

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So with this one, it's a good one to add to the portfolio

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and, hopefully, take things on from there and expand.

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Is this going to keep him busy, Jane?

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He's great at this sort of stuff.

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He's great at the kitchen stuff and fitting everything.

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He can do it all himself, very skilled.

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I'm going to give a hand with the decoration, the painting.

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Matt's obviously keen to get started.

0:20:100:20:12

But if developing is to be his new career,

0:20:120:20:15

he'll need to keep on top of the figures.

0:20:150:20:18

How are you going to go about it? Let's start off with your budget.

0:20:180:20:22

My budget, hopefully, keep it to under ten.

0:20:220:20:25

More eight to 9,000.

0:20:250:20:28

We've got a major expenditure on the two bathrooms and the kitchen.

0:20:280:20:33

Apart from that, it's a sound property. It's bricks, mortar and a tiled roof,

0:20:330:20:38

so, hopefully, we can't go too far wrong.

0:20:380:20:41

I don't want to skimp. I want to make it look nice and get some good tenants.

0:20:410:20:45

You are going to rent this out. No chance of putting it up for sale?

0:20:450:20:48

Never say never. But I think we're going to rent it.

0:20:480:20:53

With such strong transport links, I'm sure they'll have no trouble renting this out.

0:20:530:20:58

But there's work to be done first.

0:20:580:21:01

-What sort of changes are you planning on making?

-There's some interesting features!

0:21:010:21:05

Gold paint around some of the, er...

0:21:050:21:09

-I don't know what you call those!

-Yes! The picture rails!

0:21:090:21:12

-That's got to come off!

-That'll be coming off.

0:21:120:21:15

I think the, erm, the artex paper

0:21:150:21:18

in the hall and stairs, is not... I think we'll just paint over that.

0:21:180:21:23

We'll have a clean, contemporary look. Neutral colours.

0:21:230:21:28

Just a nice, clean, fresh, practical look for a family.

0:21:280:21:32

How long do you think it'll take you to do the work?

0:21:320:21:35

Of course, luckily I can go full time with it now,

0:21:350:21:39

so, hopefully, within two months.

0:21:390:21:42

Are you really going to be here every day, doing all the work?

0:21:420:21:46

-Er... Apart from bank holidays!

-Jane's laughing! "Yes!"

0:21:460:21:50

-Hopefully, I'll get a round of golf some time!

-Have yourself some leisure time.

0:21:500:21:55

I've no doubt Matt will give this his best shot,

0:21:550:21:58

but he'll have to keep his eye on the ball,

0:21:580:22:00

especially if he's to complete this in just two months

0:22:000:22:03

for less than £10,000.

0:22:030:22:05

But I need to know, how well do this couple work together?

0:22:050:22:10

As long as Jane does what I say, we'll have no problem!

0:22:100:22:12

-That was a nervous laugh!

-That was a gallows laugh!

0:22:120:22:16

-Er, I'll do as I'm told for a short while.

-Five minutes.

0:22:160:22:20

We work really well together. Matt's got a good business brain and he's very practical,

0:22:200:22:25

and I like the design bit. I'll roll up my sleeves, so we actually make a good team.

0:22:250:22:31

# You and me

0:22:330:22:35

# All that we need is each other

0:22:350:22:38

# That's why we

0:22:380:22:41

# Make a good you and me #

0:22:410:22:43

This property purchase could signal a career change for Matt.

0:22:430:22:47

And with Jane by his side, I'm sure he'll make a huge success of this.

0:22:470:22:51

But will he be able to turn this around in just two months?

0:22:510:22:55

Having run a business, he'll be used to deadlines, but will he meet this one?

0:22:550:23:00

You can find out if he does it later in the programme.

0:23:000:23:03

Coming up... In Plymouth, a four-bed terrace

0:23:040:23:07

where you've got to be careful what you touch.

0:23:070:23:10

Oops. Oh, dear. Literally falling to pieces!

0:23:100:23:14

Back in Luton... How did Matt and Jane get on with their semi?

0:23:160:23:20

Absolutely rank. It was actually disgusting.

0:23:200:23:24

But first, were things as bad as they looked in Kent?

0:23:250:23:30

I put a crowbar onto a bit of skirting and it went through the wall.

0:23:300:23:34

It's back to Crayford in Kent now,

0:23:380:23:40

where earlier, we met John and his mother Dawn.

0:23:400:23:43

They bought this rundown, decrepit cottage for £234,000.

0:23:430:23:49

It was originally two semis that had been knocked together to make one.

0:23:490:23:53

But they plan to convert it back into two separate dwellings.

0:23:530:23:57

That was a tough job for first-time developer John.

0:23:570:24:00

But he's used to challenges, after overcoming leukaemia a few years ago.

0:24:000:24:05

They gave me an hour to live.

0:24:050:24:07

-What?

-They said, "He's got no chance." I went to six stone in three weeks.

0:24:070:24:11

And here you are today,

0:24:110:24:12

-standing, talking, about to embark on a project!

-Absolutely!

0:24:120:24:16

-How cool is that?

-It's brilliant.

0:24:160:24:18

So this was one project that was much more about rebuilding a life

0:24:180:24:22

than a house.

0:24:220:24:25

It looks like it's been a fantastic total transformation.

0:24:430:24:47

For John and Dawn, it had soon become clear that that was what they had to do.

0:24:470:24:52

It was in such a state that it needed everything taken out and starting from scratch.

0:24:550:25:00

All the internal walls came out from upstairs.

0:25:000:25:03

Where there was so much damp,

0:25:030:25:05

all I did was put a crowbar onto a bit of skirting and it went through the wall.

0:25:050:25:10

They were concrete walls, as well. But it was shot to pieces with all the water.

0:25:100:25:14

They all had to come out. We were left with a big open space.

0:25:140:25:18

From that, we re-laid the walls. They've gone back in the same place they were.

0:25:180:25:23

We've replaced all the ceiling rafters, all new boards in there.

0:25:230:25:27

We've insulated all the walls. New plumbing, new electrics.

0:25:270:25:31

Fully decorated, obviously. Inside and out.

0:25:310:25:35

Everything that needed doing has been done.

0:25:350:25:38

It took 18 to 20 skips to cart away all the rubble.

0:25:380:25:42

But it looks as though it was well worth it.

0:25:420:25:44

With the house returned back into two semis,

0:25:440:25:47

John and Dawn have made the layout of number 22 a mirror-image of number 24.

0:25:470:25:53

It may be a copy, but it's a remarkable renovation nevertheless.

0:25:530:25:56

# Just the two of us

0:25:560:25:59

# We can make it if we try

0:25:590:26:02

# Just the two of us

0:26:020:26:04

# Just the two of us #

0:26:040:26:06

This is the bathroom that we've done. We've put in a pea-style bath,

0:26:060:26:10

with tiles all round this part, with a nice strip of glass tiles.

0:26:100:26:16

We've carried it on through the floor to make a feature.

0:26:160:26:20

We've kept everything very neutral

0:26:200:26:22

so that anyone that moves in can dress it to their design

0:26:220:26:27

and put their own touches to it with their colour schemes.

0:26:270:26:32

So while Dawn dealt with the design,

0:26:320:26:34

John faced up to the structural problems.

0:26:340:26:38

The problem we had in this house was,

0:26:380:26:40

we have a pillar on the opposite side of the kitchen, it mirrors this one,

0:26:400:26:45

and we wanted a nice flat wall to put the kitchen units on,

0:26:450:26:49

and to do that, I've housed it inside a cupboard.

0:26:490:26:53

We did have drawings made up to put new steel in,

0:26:530:26:56

but the council wouldn't let us do it

0:26:560:26:59

because it was going to go through the party wall.

0:26:590:27:02

So to get over that problem, so the kitchen's easier on the eye,

0:27:020:27:06

I've just housed it in a cupboard and it looks a lot better.

0:27:060:27:10

It's that attention to detail that makes John and Dawn's renovation

0:27:100:27:14

such a top-notch product.

0:27:140:27:17

While the interiors are identical, the back gardens have been split and tidied up

0:27:180:27:23

and the wonderful character revealed.

0:27:230:27:26

With the help of family members,

0:27:270:27:29

the pair only overran their four-month schedule by a few weeks.

0:27:290:27:33

And for this standard of renovation, that's pretty good going.

0:27:330:27:38

But in the end, this is principally a mother-and-son team.

0:27:380:27:42

It has been a lot of hard work, but a lot of fun.

0:27:420:27:45

'We work very well together. We don't argue.

0:27:450:27:49

'We do joint decisions on everything,

0:27:490:27:52

'on design, planning, what we're putting in, on costs.'

0:27:520:27:58

We have done double the work and I think we've got double bubble out of it.

0:27:580:28:02

They did start out with a healthy budget of £50,000,

0:28:040:28:06

but all the delays bumped that up to 76,000.

0:28:060:28:11

So added to the purchase price of £234,000,

0:28:110:28:14

their total spend is now £310,000.

0:28:140:28:18

But for John, this renovation also marks the start

0:28:220:28:26

of a brand-new chapter in his life.

0:28:260:28:28

My illness was eight years ago now.

0:28:280:28:32

It feels to me like it didn't even happen, it was a dream.

0:28:320:28:37

It's amazing that I'm to the health I am now.

0:28:370:28:40

And to have a business running, doing houses like this,

0:28:400:28:44

from eight years ago, seeing me in my deathbed,

0:28:440:28:47

it's amazing to be here now.

0:28:470:28:51

One word is "lucky".

0:28:510:28:53

I've got the trust that my parents have given me,

0:28:530:28:57

knowing that I could complete the job.

0:28:570:28:59

Mum's always had faith in me to do and produce,

0:28:590:29:02

and it's worked out well and, hopefully, we can do some more.

0:29:020:29:07

Well, hopefully they can.

0:29:110:29:13

With their total outlay of around £310,000,

0:29:130:29:16

it's time to find out what two local property experts think of their handiwork.

0:29:160:29:22

Having looked round both, absolutely fantastic finish.

0:29:220:29:25

Really, really good condition. Ideal for buyers coming to see them.

0:29:250:29:29

Both kitchens have got a lovely spacious feel to them,

0:29:310:29:34

ideal for a kitchen-dining room, and backing onto two really nice secluded gardens.

0:29:340:29:40

I think the developer has really put his heart and soul into this.

0:29:400:29:44

I'm pretty sure that when anybody comes into this house, they will get good feelings

0:29:440:29:49

and either buy it or rent it very quickly.

0:29:490:29:52

I'm pretty sure these will go fast.

0:29:520:29:54

You can see that the developers have put a lot of time and effort into it,

0:29:540:29:59

which shows through with the quality of the finish,

0:29:590:30:02

and should achieve the best possible interest.

0:30:020:30:04

John and Dawn plan to sell the houses.

0:30:040:30:08

Bearing in mind that they have invested a total of around £310,000,

0:30:080:30:13

what could resale achieve?

0:30:130:30:15

The first would achieve slightly more with the benefit of parking.

0:30:150:30:19

We'll put that at a price in the region of £205,000.

0:30:190:30:23

The second, although has no parking, would still achieve relatively close at £200,000.

0:30:230:30:29

The one with the parking, I feel, will go for £205,000.

0:30:290:30:35

The one without the parking, probably £200,000.

0:30:350:30:38

Those two possible sale valuations total £405,000,

0:30:380:30:43

which could give the duo a pre-tax profit of £95,000.

0:30:430:30:49

But Dawn thinks it might be more.

0:30:490:30:51

This is entirely brand new, totally unique,

0:30:510:30:54

and I think they warrant at least 215.

0:30:540:30:58

And that's what I hope we get.

0:30:580:31:01

Judging by this impressive renovation,

0:31:010:31:04

I reckon they might just get it.

0:31:040:31:07

Today, I'm on the South Devon coast in Plymouth.

0:31:140:31:17

This harbour city is one of the biggest naval ports in Europe

0:31:170:31:21

and has a popular university with a large student population.

0:31:210:31:27

Today, I'm in student central!

0:31:280:31:30

It's an area known as Greenbank,

0:31:300:31:33

and it really couldn't be better located for the university

0:31:330:31:36

and the harbour-side bars.

0:31:360:31:38

I'm here to see a three-storey mid-terrace,

0:31:380:31:41

at a guide price of £90 to £110,000.

0:31:410:31:44

But rather intriguingly, the catalogue description says

0:31:440:31:48

it has two, or potentially four, bedrooms.

0:31:480:31:51

Well, only one way to unearth the mystery, and that's to go inside.

0:31:510:31:57

The houses on this street remind me of fishermen's cottages

0:32:010:32:05

and they look very attractive in the sunshine.

0:32:050:32:08

Parking round here, however, is a nightmare

0:32:080:32:10

and definitely something to bear in mind.

0:32:100:32:13

I happen to know that the previous occupant lived in this property for 70 years,

0:32:170:32:22

so it may well be that it hasn't had a lot of work done on it.

0:32:220:32:25

As soon as you walk through the door, you get that impression.

0:32:250:32:29

It's very tired and dated.

0:32:290:32:32

Actually, talking about dates, sometimes you can get a clue as to when the last work was done

0:32:320:32:38

by looking underneath the carpets, because people often put newspaper down.

0:32:380:32:43

And this one, it's actually The News from Adelaide, Australia,

0:32:430:32:49

dated July 29, 1983.

0:32:490:32:52

What an intriguing thing. Why is there a newspaper from Australia under there?

0:32:520:32:57

1983 is the last time that was touched.

0:32:570:32:59

And I would hazard a guess that that's pretty much the same for most of this property.

0:32:590:33:04

It's nice it's got an open fire,

0:33:040:33:07

but something tells me this is one of those properties...

0:33:070:33:11

..where you have to spend some money.

0:33:110:33:14

And this is only the beginning.

0:33:140:33:17

The back room, which would make a good-sized bedroom, takes you even further back in time

0:33:170:33:22

with built-in cupboards and original windows.

0:33:220:33:25

But it's not the features that catch my eye here, it's the damp on the walls,

0:33:250:33:30

the cracks in the ceiling and the poor condition of, well, everything.

0:33:300:33:35

The kitchen is a shrine to 1970s wood cladding.

0:33:350:33:40

The thought that more problems could lurk behind there fills me with horror.

0:33:400:33:44

So up onto the first floor and, well, this is a bathroom.

0:33:440:33:48

Well, I say bathroom, it's not, it's a shower and a sink and no loo.

0:33:480:33:52

I don't know what is going on there.

0:33:520:33:54

One of the things you'd have to do if you were renting this out, you have to have enough toilets.

0:33:540:33:59

Frankly, I haven't found any yet!

0:33:590:34:03

Up here, two good-sized bedrooms, one there,

0:34:030:34:06

and then through to the front where you've got an amazing room!

0:34:060:34:09

I mean, it's tired and falling to pieces,

0:34:090:34:12

judging by this...

0:34:120:34:14

Oops. Oh, dear. Literally falling to pieces!

0:34:140:34:18

But there's something to work with here.

0:34:180:34:21

# You walk by

0:34:210:34:24

# And I

0:34:240:34:25

# Fall to pieces #

0:34:250:34:28

Crumbling walls aside, I still haven't seen a loo.

0:34:280:34:32

Also, the auction catalogue stated that there are potentially four bedrooms here.

0:34:320:34:37

I've found two on the first floor, so not counting the living room downstairs,

0:34:370:34:44

there should still be two more.

0:34:440:34:46

Well, up onto the top floor

0:34:460:34:49

and the mystery of those two elusive rooms is finally solved.

0:34:490:34:54

Not much head height.

0:34:540:34:56

And they are in a right old state, that one especially.

0:34:560:34:59

This one here, less so. But loads of character.

0:34:590:35:02

I love attic rooms in general. And they were originally part of the house.

0:35:020:35:07

So there you go. Five bedrooms on three floors.

0:35:070:35:10

We're now into the realms of HMO - House of Multiple Occupation.

0:35:100:35:14

But that is where you'll make your money with this property.

0:35:140:35:17

Perfect for letting to students. Somebody's been doing home brew.

0:35:170:35:21

For me, the idea of what to do with this place has finally distilled itself.

0:35:210:35:27

Despite appearances, there is scope here.

0:35:280:35:31

This house could have up to five bedrooms.

0:35:310:35:34

Perfect for a student let.

0:35:340:35:36

And it has one more trick up its sleeve.

0:35:360:35:40

And what does every student want at the end of the day?

0:35:410:35:45

Somewhere to study? I don't think so!

0:35:450:35:49

It's a place to relax with friends,

0:35:490:35:51

talk about the lectures of the day, life in general,

0:35:510:35:55

and this roof terrace is perfect for that.

0:35:550:35:58

Not only that, it's got the view of the sea.

0:35:580:36:01

What an added bonus!

0:36:010:36:03

However, it's not all bonuses.

0:36:030:36:05

I've finally found the loo, but it's outside at the back. Brrr!

0:36:050:36:11

# Shaking all over! #

0:36:120:36:15

This'll need to be added to the list with everything else,

0:36:150:36:18

especially to comply with HMO regulations,

0:36:180:36:21

which will require extra bathroom and loo facilities.

0:36:210:36:25

But remember, this house, which had a guide price of 90 to 110,000,

0:36:250:36:29

could have five bedrooms on its three floors.

0:36:290:36:32

That could mean a healthy rental return.

0:36:320:36:35

I asked the auctioneer who sold it to do some research on this possible student let.

0:36:350:36:42

If we assume that the walls and the roof are OK,

0:36:450:36:49

it's just about everything else needs doing.

0:36:490:36:51

The basic amount needed to bring it up to some form of semblance,

0:36:510:36:55

I think, is about £30-35,000.

0:36:550:36:59

I did expect a fairly high renovation spend.

0:36:590:37:02

But how many bedrooms could be squeezed in?

0:37:020:37:05

To have five bedrooms in here is really quite straightforward.

0:37:050:37:10

The trick will be, if the new owner wants to get a sixth bedroom,

0:37:100:37:14

to somehow get some more sanitation in the building.

0:37:140:37:18

Six rooms - you've got to have two showers and loos.

0:37:180:37:22

Five - you could just about get away with one.

0:37:220:37:26

So possibly six bedrooms.

0:37:260:37:28

How much weekly rent could each earn?

0:37:280:37:31

For a decent-sized room, you'll get £80,

0:37:310:37:35

maybe 85 if it had broadband and a few toys.

0:37:350:37:39

Whoa. For a 44-week academic year, that's well over £17,000 annual rent.

0:37:390:37:45

How about if it was sold as a single private house?

0:37:450:37:49

As just an ordinary house, erm,

0:37:490:37:53

done up very nicely, it could be worth £135-145,000.

0:37:530:37:58

Well, the house obviously needs quite a lot of sorting out.

0:37:580:38:02

I think it would be worth the investment.

0:38:020:38:05

It's got "student let" written all over it.

0:38:050:38:08

And in this case, I think that could bring in serious money.

0:38:080:38:11

Let's see which bright spark spotted this one at the auction.

0:38:110:38:16

So a three-storey property.

0:38:190:38:23

We've got two phone bidders. It ought to be 100 straight in.

0:38:230:38:28

One. And 101, do I? One I've got. At one.

0:38:280:38:32

102. 103? 103. 104.

0:38:320:38:36

105? 105. 106?

0:38:360:38:39

At... 107. 107. 108?

0:38:390:38:43

At 108. At 108 once, then. You're both out. 109.

0:38:430:38:46

110. 111. 112!

0:38:460:38:50

113.

0:38:500:38:51

114. And 15. And 16.

0:38:510:38:57

And 17.

0:38:570:38:58

118. 118. 119. 120.

0:38:580:39:02

121. 122. 122.

0:39:020:39:05

123. Half.

0:39:050:39:08

125?

0:39:080:39:10

125. What's a little stamp duty between friends?

0:39:100:39:14

At 125 and a half. 125. 126.

0:39:140:39:18

And a half! 127.

0:39:180:39:21

127 and a half. 128.

0:39:210:39:23

128 and a half.

0:39:230:39:25

130. At 130. 130 and a half.

0:39:250:39:28

131? 131 and a half.

0:39:280:39:32

132. 132 and a half. "Not yet", she says. 133.

0:39:320:39:37

133? 133 and a half? 134.

0:39:370:39:42

135.

0:39:420:39:44

136. 136 and a half. The same, if you'd like it, sir. 137.

0:39:440:39:48

On my left it is. 137 twice. Here we go.

0:39:480:39:52

At 137, I'll look up the line. At 137, it's all done and finished.

0:39:520:39:58

Sir, yours. 137.

0:39:580:40:01

For £137,000,

0:40:030:40:06

the successful bidder was builder Graham,

0:40:060:40:09

who's Plymouth born and bred.

0:40:090:40:11

He bought the house to add to his growing buy-to-let portfolio.

0:40:110:40:15

He already owns two properties in the area, which are student lets.

0:40:150:40:20

Graham, lovely to meet you. Congratulations.

0:40:210:40:23

What work are you going to carry out on the property?

0:40:230:40:26

Literally from head to toe, every room is going to be gutted.

0:40:260:40:30

It's all going to be replastered, reskimmed.

0:40:300:40:33

There's going to be a new kitchen fitted.

0:40:330:40:37

A dormer to be added at the top.

0:40:370:40:39

Fire doors. There's going to be two bathrooms put in, two shower rooms.

0:40:390:40:43

Double glazed.

0:40:430:40:45

Finish of the central heating and it'll be completely rewired.

0:40:450:40:49

-Where are the shower rooms going?

-In the bathroom,

0:40:490:40:52

-I'm hoping to split it completely down the middle.

-Oh!

0:40:520:40:55

Have a passageway in the middle and probably put a window at the end

0:40:550:40:59

to give extra light into the hall.

0:40:590:41:01

-Keeping it pretty much where it is, but splitting it in two?

-Yes.

0:41:010:41:06

Graham hopes to get everything done for 25,000.

0:41:060:41:09

To help save on costs, he'll be doing the work himself,

0:41:090:41:12

along with his usual team of builders.

0:41:120:41:15

By offering all mod-cons, he can to ensure that the place is done to the highest grade-A standards

0:41:160:41:23

set by the university.

0:41:230:41:25

Modern furniture. Double beds. Broadband in each room.

0:41:250:41:31

Nice fitted kitchen.

0:41:310:41:33

Basically, all modernised.

0:41:330:41:36

Broadband and modern furniture, eh?

0:41:360:41:38

How things have changed since I was a student!

0:41:380:41:41

But will he have everything done in time to get it rented out

0:41:410:41:45

before the new academic year in nine months?

0:41:450:41:48

I've got it rented already, last night.

0:41:480:41:51

-Sorry?

-I rented it last night.

-How?

0:41:510:41:54

I saw some students and took them to one of my other rented properties,

0:41:540:41:58

then I was able to take them to another property and they could see the standard.

0:41:580:42:02

-Then I brought them here after and they took it.

-Wow!

0:42:020:42:06

-So, they took it in this state?

-Yes.

0:42:060:42:08

On the assumption that by the time they come to rent in it September...

0:42:080:42:12

-So you've got nine months to sort it.

-Yes.

0:42:120:42:16

-That's nice to know before you start the work!

-Yes.

0:42:160:42:19

Congratulations. Good luck with it all.

0:42:190:42:21

-Thanks.

-Look forward to seeing how you get on!

0:42:210:42:25

I think Graham's got himself a great property here.

0:42:260:42:29

Lots of work to do to get it sorted out.

0:42:290:42:32

I hope he doesn't uncover too many nasties in the process.

0:42:320:42:36

But you can find out what A-grade student accommodation looks like

0:42:360:42:41

later in the show. Hopefully!

0:42:410:42:43

Now, we always hope that our buyers have set themselves realistic timescales and budgets.

0:42:460:42:51

There's only one way to find out and that's to catch up with them after all the hard work.

0:42:510:42:56

Earlier, we were in Luton where we met Matt and Jane.

0:42:580:43:02

They'd bought this dated, rundown, three-bed semi

0:43:020:43:05

for £120,500.

0:43:050:43:09

Matt previously ran a printing business,

0:43:090:43:11

but now plans to start property developing full time.

0:43:110:43:14

He already had clear ideas about delegating the work.

0:43:140:43:19

As long as Jane does what I say, we'll have no problem!

0:43:190:43:22

-That was a nervous laugh!

-That was a gallows laugh!

0:43:220:43:25

-Er, I'll do as I'm told for a short while.

-Five minutes.

-We work really well together.

0:43:250:43:31

Just as well, by the sounds of it!

0:43:320:43:35

Six months later, the house certainly looks neater and tidier on the outside.

0:43:360:43:42

And it's great to see that Matt and Jane

0:43:420:43:45

are still happily working together!

0:43:450:43:48

What it was like before was absolutely rank!

0:43:490:43:52

It was actually disgusting.

0:43:520:43:54

There was rubbish everywhere. The walls were dirty.

0:43:540:43:58

Everything was filthy,

0:43:580:44:00

completely outdated, dirty, unkempt and unloved.

0:44:000:44:05

They've definitely put some love back into this house.

0:44:080:44:11

The living room is freshly decorated

0:44:110:44:14

and that downstairs bathroom has been replaced with a new suite and loo.

0:44:140:44:18

Best of all, there's a stylish new kitchen.

0:44:230:44:27

But the most significant change is upstairs.

0:44:310:44:36

If you remember originally, there was two separate rooms.

0:44:360:44:39

This is one room, which held the WC and nothing else.

0:44:390:44:42

There was a dividing wall and then just a wash basin, which is quite a strange design.

0:44:420:44:48

So I decided to fill this door in, open up the bathroom

0:44:480:44:51

and put a quadrant shower in with a basin.

0:44:510:44:55

It's fitted in, I think, quite well.

0:44:550:44:58

I think the hardest job, personally, was the tiling.

0:44:580:45:03

I found that bit painfully slow.

0:45:030:45:05

There was a learning curve. I haven't done any for years.

0:45:050:45:08

It took a while to get into it. Once I got into it, it wasn't bad.

0:45:080:45:12

But I never want to see a tile again for another six months!

0:45:120:45:15

And Matt's skills didn't end there.

0:45:150:45:18

He's replastered the whole house

0:45:180:45:20

and installed and plumbed in the new bathrooms and the kitchen.

0:45:200:45:25

With the electrics rewired by professionals,

0:45:270:45:29

that left Jane to help with the colour scheme and design.

0:45:290:45:32

So teamwork has definitely paid off in this renovation.

0:45:320:45:36

But I reckon Matt has had a little difficulty adapting to his new working lifestyle.

0:45:360:45:41

There's been lonely times. I'm not used to a working environment by myself for most of the day.

0:45:410:45:47

So it's a little bit of a learning curve,

0:45:470:45:51

to learn how to just occupy myself as I work.

0:45:510:45:55

I do miss actually working alongside other people.

0:45:550:45:59

# Lonely days

0:45:590:46:02

# Lonely nights

0:46:020:46:05

# Where would I be without my woman? #

0:46:050:46:08

I think Matt's found this a great challenge.

0:46:080:46:11

He's shown a lot of self-discipline, particularly in the early days

0:46:110:46:15

when it was freezing, the house was horrible, there was no heating,

0:46:150:46:18

it was lonely, there was no electrics,

0:46:180:46:20

to where it is today.

0:46:200:46:22

I'm very proud of him. He should be very proud of himself.

0:46:220:46:26

It's a fabulous achievement for him.

0:46:260:46:29

I think Jane's right. Matt really has rejuvenated this rundown property.

0:46:290:46:34

He deserves to take great pride in what he's achieved here.

0:46:340:46:37

But as the job slowed down from the original two-month schedule to six months,

0:46:370:46:41

did the budget take a hit, too?

0:46:410:46:44

I hoped to keep it under £11,000.

0:46:440:46:47

I think I've just about come under £9,000.

0:46:470:46:50

So that's quite a good result.

0:46:500:46:53

I'd say so. Roughly two grand under budget.

0:46:540:46:58

So on top of the purchase price of £120,500,

0:46:580:47:02

that would take his spend to just below £130,000.

0:47:020:47:07

Is it time to cash in on that investment?

0:47:070:47:09

Originally, I was going to rent it out,

0:47:090:47:12

but I think now I'm more prone to try and put it on the market

0:47:120:47:15

to see what I can raise to go on to the next project.

0:47:150:47:18

Hopefully, Matt's work will show a good enough return to move on.

0:47:260:47:31

Let's hear what two local estate agents think of this renovation.

0:47:310:47:36

I like the way he's finished the property.

0:47:370:47:41

Clean lines and neutral colours will always appeal to a buyer.

0:47:410:47:44

Nice fitted kitchen, fitted bathroom, as well. Very nice.

0:47:440:47:48

Spacious accommodation. Very nicely refurbished.

0:47:480:47:53

Nice setting, in front of the green,

0:47:530:47:55

and the nice outlook to the rear over the field.

0:47:550:47:58

The sanitary ware is very nice. And a nice fitted kitchen.

0:47:580:48:02

I like the off-road parking.

0:48:020:48:04

They don't all have that in the area. It's mainly street parking.

0:48:040:48:08

Well, it seems to tick all the right boxes.

0:48:080:48:12

But remember, Matt and Jane's total outlay here was just under £130,000.

0:48:120:48:17

So, what are the resale valuations?

0:48:170:48:21

I would put this on between 145 and 150,000.

0:48:210:48:25

I could put this on the market for £159,995.

0:48:250:48:30

It's slightly disappointing. I was hoping more towards the 160-mark-plus.

0:48:300:48:34

It's not a disaster. We're still in profit.

0:48:340:48:38

Hopefully, we'll be able to hold onto it for a little bit longer and accrue a bit more profit.

0:48:380:48:43

That maximum possible resale valuation could give them a £20,000 pre-tax profit.

0:48:430:48:49

But what if they rent it out?

0:48:490:48:52

We'd rent this out for £625 per calendar month.

0:48:520:48:55

I'd be able to rent this property out for £700 per calendar month.

0:48:550:48:59

700 is a good figure for renting and I think there's great possibilities here.

0:48:590:49:04

There's Luton Airport with all the workers,

0:49:040:49:07

and some quite big companies around here with transient workers,

0:49:070:49:10

so I think it's a lovely house to rent.

0:49:100:49:13

That's all down to Matt and Jane's hard graft.

0:49:130:49:17

I reckon they deserve that cuppa.

0:49:170:49:19

And I think Matt really does have an appetite for property developing now.

0:49:190:49:23

It's been good. I've enjoyed the journey.

0:49:230:49:26

I'm pleased with the result. Just can't wait to start the next project.

0:49:260:49:30

Back to Devon now. In Plymouth, we met Graham,

0:49:350:49:38

who'd paid £132,000 for this four-bed terraced house.

0:49:380:49:42

He planned to add it to his growing rental portfolio.

0:49:420:49:46

But before he could do that, he faced problems on every level.

0:49:460:49:50

The ranged from rampant damp

0:49:500:49:52

to an interior that was falling apart.

0:49:520:49:55

Plus, the only loo was in a small courtyard at the back.

0:49:550:49:59

It was the sort of project where any potential profit could easily be flushed away.

0:49:590:50:05

Well, it's been four months, and it's great to see the changes outside.

0:50:090:50:14

The front has been painted and replacement windows put in.

0:50:150:50:19

Inside, the living room has been transformed into something far more appealing.

0:50:190:50:25

A new kitchen's been installed

0:50:260:50:28

and now looks a much more attractive place to rattle those pots and pans.

0:50:280:50:33

But did Graham manage to turn four bedrooms into six?

0:50:330:50:37

It's a six-bedroom house.

0:50:370:50:39

We split the front bedroom and made two rooms.

0:50:390:50:44

We had to literally alter the passageway.

0:50:440:50:48

There was two rooms upstairs in the attic, but we put a dormer on,

0:50:510:50:55

highered the roofs and ceilings and made two bedrooms up there.

0:50:550:51:01

And we've changed the dining room into also a bedroom.

0:51:040:51:08

With that back bedroom on the first floor, that makes six.

0:51:080:51:12

With so many bedrooms and floors, this will be a licensable house of multiple occupancy.

0:51:120:51:18

This means that, as it has over five bedrooms,

0:51:180:51:21

it will need two loos.

0:51:210:51:22

This place only had one and it was outside.

0:51:220:51:26

In this part of the building, the door used to be here.

0:51:260:51:29

We took the door down, created two walls, two bathrooms.

0:51:290:51:33

We put a bath on this side, sink, toilet.

0:51:330:51:36

This side, there's another toilet, a sink and a shower room.

0:51:360:51:39

Now they've got two toilets inside the house, ideal for students.

0:51:390:51:43

Graham's done a nifty job of solving that tricky bathroom situation.

0:51:430:51:48

But that main solution to enlarging the space started on the roof.

0:51:480:51:53

Up here, we had a wall with a chimley.

0:51:540:51:58

The wall was quite wide. It was leaning really bad.

0:51:580:52:01

We removed the wall and took the chimley right down through the building.

0:52:010:52:05

In doing so, we've gained more room in the kitchen and the bathrooms.

0:52:050:52:10

We took this flat roof off because the joists were so bad, they were rotten.

0:52:100:52:14

We formed a dormer up here to give us more room in the attic for the bedrooms.

0:52:140:52:20

We've put the railings up. They just need to be painted now.

0:52:200:52:24

We've still got to put tiles down on the floor to finish the job off.

0:52:240:52:28

I'm sure the students living here will be on the tiles quite a bit!

0:52:280:52:32

From the top to the bottom now, where the courtyard has been revamped,

0:52:320:52:36

and there is now a utility area, which frees up space in the kitchen.

0:52:360:52:41

The outside loo has been kept, though it's still a bit chilly.

0:52:410:52:46

But this small yard sums up the problems Graham faced here.

0:52:460:52:50

The worst thing about this project was how small the house was,

0:52:500:52:54

no parking, nowhere to put your rubbish

0:52:540:52:57

and nowhere to have materials delivered to you.

0:52:570:53:01

We had to have all materials delivered up the end of the lane and hand-brought down.

0:53:010:53:05

That has been really time consuming.

0:53:050:53:08

Due to rebuilding that external back wall,

0:53:080:53:12

gutting the house completely and the total renovation required,

0:53:120:53:16

budget did increase from 25 to £32,000.

0:53:160:53:21

Add that to the purchase price of £137,000,

0:53:210:53:25

and the total spend is £169,000.

0:53:250:53:28

But with the help of his team, Graham managed to do it in his estimated time of 16 weeks.

0:53:280:53:34

Now he's waiting for the HMO inspection to be approved

0:53:340:53:38

and then, of course, there's the quality control of the new tenants.

0:53:380:53:42

The students who are already renting the property,

0:53:420:53:45

they came to look at it in its first state, but they haven't been back yet.

0:53:450:53:50

Their eyes will be opened a little bit. Hopefully, anyway!

0:53:500:53:54

Graham will be letting to students for £80 per room, per week.

0:53:540:53:58

So for six rooms, that all adds up to a lean, mean rental machine.

0:53:580:54:04

Bearing Graham's total spend of £169,000 in mind,

0:54:090:54:14

we asked two local property experts

0:54:140:54:16

if they thought the house came top of the class.

0:54:160:54:20

I think the bloke's a magician, compared to when I last saw it.

0:54:210:54:24

It's clean, nice, bright, tidy.

0:54:240:54:27

It's a quality job.

0:54:270:54:29

The standard of finish is very good actually. It's very neat and tidy.

0:54:290:54:33

Plaster walls, which is perfect, because you want to avoid paper.

0:54:330:54:36

Modern kitchen. He's done a really good job with the bathroom

0:54:360:54:40

to make two units out of what is really one room.

0:54:400:54:43

The layout is very efficient,

0:54:430:54:47

particularly on this floor.

0:54:470:54:49

By having an angled lobby, he's ended up with three good rooms

0:54:490:54:52

instead of two good rooms and a squirty one.

0:54:520:54:55

The layout works very well for his proposed use.

0:54:550:54:59

Six double letting rooms is perfect for the size of the property.

0:54:590:55:04

Lots of good feedback there.

0:55:040:55:07

Graham's charging £80 per week, per room.

0:55:070:55:10

So, is the house earning to its full potential?

0:55:100:55:13

As a student let, for each room,

0:55:130:55:16

you're going to get a minimum of £80 a week for about 11 months.

0:55:160:55:21

So the rent roll for the building for a classic academic year

0:55:210:55:25

will be around £23,000.

0:55:250:55:28

The rental income here will be approximately £2,000 per calendar month.

0:55:280:55:33

The year for student rental will be 11 months of the year,

0:55:330:55:38

2,000 times 11 - £22,000,

0:55:380:55:40

which means it's an excellent investment and incredibly good yield.

0:55:400:55:44

Yes, that's what I've valued them at.

0:55:440:55:47

I've rented at £80 a week.

0:55:470:55:49

So I'm quite happy... very happy with the return on it.

0:55:490:55:54

Graham was spot on with his rent there.

0:55:540:55:56

But the experts reckon that if he ever decides to sell,

0:55:560:55:59

its rental potential could be a real bonus.

0:55:590:56:02

If sold as a rental machine, it could possibly fetch £240,000,

0:56:020:56:08

meaning a whopping pre-tax profit of £71,000.

0:56:080:56:12

That's very pleasing.

0:56:150:56:17

I knew on the rental side how much I was going to be getting back, but that's...

0:56:170:56:21

Much happier now!

0:56:210:56:23

I'm not surprised. But profit aside, Graham's done an excellent job here

0:56:230:56:28

and it's something he's sure the students will appreciate, too.

0:56:280:56:32

I'm very pleased with the property. It's turned out very nice.

0:56:330:56:37

I just can't wait to see the students when they move back in, to see their faces.

0:56:370:56:41

Well, those stories have now been added to our archive.

0:56:480:56:51

But there are always more. So join us next time for Homes Under The Hammer.

0:56:510:56:55

-See you!

-BOTH: Goodbye!

0:56:550:56:56

Subtitles by Red Bee Media Ltd

0:56:560:57:00

E-mail [email protected]

0:57:000:57:05

Martin Roberts and Lucy Alexander visit a house in Kent, a semi-detached property in Luton and a four-bed terrace in Plymouth.

All of these properties went to auction, and Martin and Lucy find out who bought them and what they paid when they went under the hammer.


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