0:00:02 > 0:00:06Have you ever wanted to buy a property at auction?
0:00:06 > 0:00:08We can show you some tricks of the trade.
0:00:08 > 0:00:13Yes, we join three buyers who bought their home under the hammer.
0:00:38 > 0:00:41Auction houses aren't intimidating.
0:00:41 > 0:00:44Anyone can buy there. All you need is money.
0:00:44 > 0:00:48Today, we talk to some buyers who took the plunge.
0:00:48 > 0:00:51Did they sink or swim? Let's find out.
0:00:53 > 0:00:57'There are three bedrooms in this Plymouth bungalow,
0:00:57 > 0:00:59'and potential for more.'
0:00:59 > 0:01:02I think it's pretty good as it is.
0:01:02 > 0:01:06'In London, you can have your cake and eat it.
0:01:06 > 0:01:09'This flat has large rooms and a garden.'
0:01:09 > 0:01:12This is the cherry on the cake.
0:01:12 > 0:01:16'The renovation for this Solihull apartment will vary
0:01:16 > 0:01:18'according to how it's used.'
0:01:18 > 0:01:23If you're going to rent it out, leave it as it is.
0:01:25 > 0:01:28'All these properties went to auction.
0:01:28 > 0:01:33'We'll find out who bought them and what they paid when they went under the hammer.'
0:01:36 > 0:01:42'Plymouth in Devon - blue skies, green fields and peaceful harbours.
0:01:42 > 0:01:46'This area is very popular with holidaymakers, home-owners
0:01:46 > 0:01:51'and, by the look of it, passing royalty.'
0:01:59 > 0:02:01The regal theme continues.
0:02:01 > 0:02:03This is Crown Hill Road,
0:02:03 > 0:02:08but properties here won't cost you a king's ransom or a princely sum.
0:02:08 > 0:02:14I'm here to see a bungalow with a guide price of just 90,000 quid.
0:02:25 > 0:02:31That is quite a noisy road, but when you walk through the front door...
0:02:31 > 0:02:34You can't hear it, how great is that? And I love this!
0:02:34 > 0:02:39Fantastic huge entrance hall! Absolutely marvellous.
0:02:39 > 0:02:44All the main rooms spread off this. A lounge there. A bedroom there.
0:02:44 > 0:02:46Loo there.
0:02:46 > 0:02:49Another room leading to the kitchen.
0:02:49 > 0:02:53Bungalows can feel claustrophobic but not this one.
0:02:53 > 0:02:56Light pouring through the windows.
0:02:56 > 0:03:00In the lounge, two big doors leading out to the lean-to.
0:03:00 > 0:03:03It's a bit tired. It's a bit dated.
0:03:03 > 0:03:07But some of the features that are still here - picture rails,
0:03:07 > 0:03:09high ceilings.
0:03:09 > 0:03:11Great start!
0:03:11 > 0:03:16Apart from the dated decor, I reckon the rooms down here are great.
0:03:16 > 0:03:20They're well-proportioned and very bright.
0:03:25 > 0:03:28I would take down the dividing wall in the kitchen
0:03:28 > 0:03:31to create an open-plan dining space.
0:03:31 > 0:03:36Talking of space, being a dormer bungalow, this has lots of it.
0:03:36 > 0:03:41When you come upstairs, I have to say, this dormer bungalow
0:03:41 > 0:03:46looks suspiciously like a house - it's certainly got enough space!
0:03:46 > 0:03:48Two bedrooms.
0:03:48 > 0:03:53You could put another bedroom up here, maybe creating a dormer,
0:03:53 > 0:03:56but I think it's pretty good as it is.
0:04:02 > 0:04:06'What more could you want than a bungalow that has three bedrooms?
0:04:06 > 0:04:09'There's even more to it at the back.'
0:04:13 > 0:04:18At the rear of the property, this fairly "tired" lean-to.
0:04:18 > 0:04:21But good news, a decent sized garden and, I reckon,
0:04:21 > 0:04:24if you got rid of some trees, a nice view.
0:04:24 > 0:04:30So, an additional bit of outside space, which is lovely to have.
0:04:30 > 0:04:34'I think this semi-detached bungalow would have been a fantastic buy
0:04:34 > 0:04:37'around guide price of 90 grand.
0:04:37 > 0:04:43'I asked a local estate agent for his opinion of the place.'
0:04:45 > 0:04:50It has been a lovely family home. It's just a little bit tired.
0:04:50 > 0:04:57The house needs, mostly, DIY. Most people would say, "I could tackle this work myself.
0:04:57 > 0:05:01'So, once tidied up, what could it rent for?'
0:05:01 > 0:05:07Rental properties in the area for this size are about £700 a month.
0:05:07 > 0:05:10'What if the buyer chooses to sell?'
0:05:10 > 0:05:16Depending on what you do, it has got a lot of scope, up to £180,000.
0:05:17 > 0:05:22An opportunity for sympathetic expansion with this one.
0:05:22 > 0:05:26I like the bungalow as it is. It's got a feeling of spaciousness.
0:05:26 > 0:05:31You could add another room but you'd have to weigh up the economies.
0:05:31 > 0:05:34- TRAFFIC - Bit noisy on the road.
0:05:34 > 0:05:39But for that £90,000 guide price, it was a good one to go for.
0:05:39 > 0:05:42Let's see who spotted it when it went to auction.
0:05:46 > 0:05:4990, straight in? 90 I've got.
0:05:49 > 0:05:51At 90. At 90. At 90. 92.
0:05:51 > 0:05:5494. At 94.
0:05:54 > 0:05:5694's on my right, sir.
0:05:56 > 0:05:5996. 98. At 98. At 98.
0:05:59 > 0:06:02Just along from you says 100.
0:06:02 > 0:06:04Thank you. That's the way. 100. 102.
0:06:04 > 0:06:09You're both out at the back? 102's on my right. 104.
0:06:09 > 0:06:14104. Six was the gentleman just before you, madam. Sorry.
0:06:14 > 0:06:17107? 107. Gents? 108.
0:06:17 > 0:06:19108. 109.
0:06:19 > 0:06:22110.
0:06:22 > 0:06:24111? Eleven. All the 1s.
0:06:24 > 0:06:26112. 113.
0:06:26 > 0:06:30113. 113. 14.
0:06:30 > 0:06:32114. 115.
0:06:32 > 0:06:35116. 117. 117.
0:06:35 > 0:06:38118.
0:06:38 > 0:06:4018 I've got. 19.
0:06:40 > 0:06:4220. At 120.
0:06:42 > 0:06:4421?
0:06:44 > 0:06:47121. 122.
0:06:47 > 0:06:50123. 124.
0:06:50 > 0:06:52At 12...5.
0:06:52 > 0:06:54126.
0:06:56 > 0:06:58127. 128.
0:06:58 > 0:07:00129.
0:07:00 > 0:07:02130.
0:07:02 > 0:07:06At 130. At 130. At 130.
0:07:07 > 0:07:10131. 132.
0:07:10 > 0:07:13133. 133.
0:07:13 > 0:07:17At 133, the lucky lady has it at the moment.
0:07:17 > 0:07:20At 133. Rather nervous looking lady here. At 133.
0:07:20 > 0:07:24133 second time. Here we go.
0:07:24 > 0:07:26At 133 and done. Madam, well done.
0:07:26 > 0:07:31'That was more like a game of tennis than an auction.
0:07:31 > 0:07:34'The winning serve of £133,000
0:07:34 > 0:07:37'came from Jo, a property developer
0:07:37 > 0:07:42'who has a portfolio of five properties, including two in Spain
0:07:42 > 0:07:44'and one in France.
0:07:44 > 0:07:48'I met her and her dog Fuego to see what she's got planned.'
0:07:54 > 0:07:57- Jo, congratulations. - Thank you very much.
0:07:57 > 0:08:01- Why did you want to buy the house? - It had a lovely feel to it.
0:08:01 > 0:08:06It was the only place that stopped my eye in the auction.
0:08:06 > 0:08:11'Jo financed this using leftover money from a mortgage arranged
0:08:11 > 0:08:14'to pay off loans on her properties in Spain.
0:08:14 > 0:08:18'These ventures abroad haven't gone well for her.
0:08:18 > 0:08:25'She's struggled to rent them out so has decided to try her luck on these shores.'
0:08:28 > 0:08:31Why did you buy it? What's it for?
0:08:31 > 0:08:36Well, it was initially with a buy-to-let in mind.
0:08:36 > 0:08:42I'd like to keep it, though, to live in if I have to stay in England.
0:08:42 > 0:08:45You say that like the plan is to go to Spain?
0:08:45 > 0:08:50Well, that was my idea of buying in Spain but things didn't go right.
0:08:58 > 0:09:02'Let's hope it'll be more plain sailing in Devon.
0:09:02 > 0:09:07'There's lots of rental potential in such a tourist hotspot.'
0:09:07 > 0:09:09Tell me what you're going to do.
0:09:09 > 0:09:14Upstairs, I would like to put in two dormers in the rear
0:09:14 > 0:09:19to get the view of the Tamar and everything else across there,
0:09:19 > 0:09:21open it out.
0:09:21 > 0:09:26But I don't know whether I'll be able to afford that on the budget!
0:09:26 > 0:09:30'Jo's renovation budget is 15,000 to 20,000,
0:09:30 > 0:09:33'and she has plans for every room.'
0:09:33 > 0:09:38I'd like to get double glazing put in, to replace the Crittall windows.
0:09:38 > 0:09:41The biggest problem is the kitchen.
0:09:41 > 0:09:48It's a funny shape and apparently you can't knock the wall down entirely to that utility area.
0:09:48 > 0:09:50'That is a pain.
0:09:50 > 0:09:55'It would be lovely to open it up and make it more liveable.
0:09:55 > 0:09:59'Jo is still planning to renovate the kitchen completely.
0:09:59 > 0:10:04'In the rest of the house, she's planning to install central heating,
0:10:04 > 0:10:09'a bathroom, update the conservatory and double glazing throughout.
0:10:09 > 0:10:13'The renovation will be done by her old friend, Paul.
0:10:13 > 0:10:17'He has done all the work on her other properties.'
0:10:17 > 0:10:21Will you be supervising or do you let him get on with it?
0:10:21 > 0:10:25Well, I sort of supervise. LAUGHS
0:10:25 > 0:10:27When I can get a chance.
0:10:27 > 0:10:30We discuss what's going to be done,
0:10:30 > 0:10:35then go off getting materials and choosing the various things.
0:10:35 > 0:10:41'Jo's budget of 15,000 to 20,000 is generous. I can't see her spending all that inside.
0:10:41 > 0:10:44'Some of it should be spent on the garden,
0:10:44 > 0:10:49'especially as there is more to it than first meets the eye.'
0:10:53 > 0:11:00The garden's got a very interesting tree area, which no-one knew about when I first went for the house.
0:11:00 > 0:11:04I thought it ended at the boundary, this overgrown hedge.
0:11:04 > 0:11:09Looking down, there's a slope with an area with great tall trees.
0:11:09 > 0:11:16I'd like to open it out so you've got a view of this rural woodland bit.
0:11:16 > 0:11:19- Land you didn't know about?- Yeah.
0:11:19 > 0:11:24I asked the solicitor to check and he said, "Yes. It is yours."
0:11:24 > 0:11:26'When that area is cleared,
0:11:26 > 0:11:32'it should make for great views and a lovely place to relax.
0:11:32 > 0:11:37'So, maybe Jo's luck in the property game IS on the turn.'
0:11:37 > 0:11:40So, what's next for you?
0:11:40 > 0:11:45What's next? To try and balance all these things out.
0:11:45 > 0:11:50I'm a walking mortgage, I've got so many mortgages it's unbelievable!
0:11:50 > 0:11:53People assume you're well off if you do this.
0:11:53 > 0:11:58I joke that my name's Hipoteca, which is Spanish for "mortgage".
0:11:59 > 0:12:05Will this herald the start of the good news property stories for Jo?
0:12:05 > 0:12:11She's got a nice bungalow and Paul to do the work, as long as he isn't dragged onto other jobs.
0:12:11 > 0:12:1615 grand budget should be enough, but with property, you never know.
0:12:16 > 0:12:20Find out how she gets on later in the show.
0:12:22 > 0:12:24'For the next property,
0:12:24 > 0:12:29'I'm in the northwest London suburb of Cricklewood.
0:12:29 > 0:12:31'There's a regeneration scheme in the area
0:12:31 > 0:12:37'and if you fancy a trip to the sea, it's on the Luton to Brighton line.'
0:12:37 > 0:12:42But I want to see what today's property's got to offer.
0:12:42 > 0:12:48It's a ground floor garden flat. It's got two bedrooms and a guide price of £250,000.
0:12:48 > 0:12:52It looks nice from the outside. It's in a lovely street.
0:12:52 > 0:12:57They say the colour of your front door adds kerbside appeal.
0:12:57 > 0:12:59This red one's calling me in.
0:12:59 > 0:13:05'Enticing as it looks, it's blocked up and is only there for show.
0:13:05 > 0:13:09'That could be your first challenge, to reinstate that door.
0:13:09 > 0:13:11'The entrance is down the side.'
0:13:11 > 0:13:17Now, first impressions for me are it's quite a low ceiling in here.
0:13:17 > 0:13:21Bathroom to the right. You'd certainly need to change the decor.
0:13:21 > 0:13:26But all is forgiven! Look at this room!
0:13:26 > 0:13:30This is something you don't see often on Homes Under The Hammer -
0:13:30 > 0:13:35a room with beautiful period features intact.
0:13:35 > 0:13:39You've got some stunning cornicing, ceiling rose.
0:13:39 > 0:13:42The fireplace has been ripped out.
0:13:42 > 0:13:46You'd need to replace that with something original.
0:13:46 > 0:13:50You've got the big window area, original sash windows.
0:13:50 > 0:13:54You've got to look past all of this dirt and soot,
0:13:54 > 0:13:59cos this will be a stunning room once renovated.
0:13:59 > 0:14:02Fantastic! Onwards! Let's have a look around.
0:14:02 > 0:14:07We've got a skinny hallway. Again, it needs a paint job.
0:14:07 > 0:14:10A really nice size room there.
0:14:10 > 0:14:14You could probably open this up. Lots of storage space.
0:14:14 > 0:14:17At the back of the property... Eugh!
0:14:17 > 0:14:21A really disappointing kitchen area!
0:14:21 > 0:14:27We've got low ceilings. For me, kitchens really make a home.
0:14:27 > 0:14:30I'd use this as a second bedroom,
0:14:30 > 0:14:34and I've got a great idea where the kitchen could go.
0:14:34 > 0:14:39'Although it doesn't look spacious, imagine this without the units.
0:14:39 > 0:14:42'I reckon it's big enough for a double bedroom.
0:14:42 > 0:14:47'You could turn this into the quieter, more secluded part.
0:14:47 > 0:14:53'And I've got just the place to relocate the kitchen.'
0:14:53 > 0:14:55I first thought "bedroom".
0:14:55 > 0:14:59Now, I'm thinking this would be an amazing kitchen!
0:14:59 > 0:15:05I say that because it would be such a great room to entertain in.
0:15:05 > 0:15:09You've got wonderful ceiling height. You've got a lovely fireplace.
0:15:09 > 0:15:13You could have a working fireplace.
0:15:13 > 0:15:17There's enough room to have an island or table and chairs.
0:15:17 > 0:15:22Lots of lovely wall space to put your units and cupboards.
0:15:22 > 0:15:24Here, you've got a lovely window.
0:15:24 > 0:15:29You could knock this through and have a doorway leading straight out
0:15:29 > 0:15:31onto the garden.
0:15:31 > 0:15:36You've got to move the services - water and gas. That could be costly.
0:15:36 > 0:15:39I really think it would be worth it.
0:15:39 > 0:15:43Then you've got the quiet sleeping area down one end.
0:15:43 > 0:15:48And these two grand, magnificent rooms towards the front
0:15:48 > 0:15:51that are perfect for entertaining.
0:15:56 > 0:16:01'I love the idea of turning this part into the heart of the flat.
0:16:01 > 0:16:04'The leasehold is for a healthy 125 years.
0:16:04 > 0:16:09'The ground rent is quite high at £200 a year
0:16:09 > 0:16:12'and the annual service charge 600 quid.
0:16:12 > 0:16:15'If you forget to factor them into your budget,
0:16:15 > 0:16:19'you could get a shock when the bills come in.'
0:16:19 > 0:16:23For most London properties, the garden ends about here.
0:16:23 > 0:16:27But oh, no! Not for this lovely property it doesn't.
0:16:27 > 0:16:31Look at all this space. You've got a walled area there.
0:16:31 > 0:16:36Another beautiful wall here. It feels really enclosed.
0:16:36 > 0:16:42Once cleared, it would be such a lovely little plot out here. For me, this is the cherry on the cake.
0:16:48 > 0:16:54'For that guide price of 250,000, there seems to be a lot on offer.
0:16:54 > 0:17:00'What does an estate agent familiar with property in the area think of this flat?'
0:17:00 > 0:17:03My first impression is that it's a decent size.
0:17:03 > 0:17:08It's larger than I thought it was going to be, and this garden
0:17:08 > 0:17:12is larger than I thought as well. It has fantastic potential.
0:17:12 > 0:17:17'A good start. I think he likes it as much as I do!
0:17:17 > 0:17:20'What should be tackled first?'
0:17:20 > 0:17:22It's a wreck at the moment.
0:17:22 > 0:17:28It needs a new kitchen, new bathroom, probably wiring, probably plumbing.
0:17:28 > 0:17:34I noticed foliage in the front, causing shadow into the living room.
0:17:34 > 0:17:38- I'd certainly cut that back. - 'Let's talk figures.
0:17:38 > 0:17:45'For buy-to-let investors, how much income could it generate if it was rented out?'
0:17:45 > 0:17:48Per calendar month, I would rent this out for circa £1,200.
0:17:48 > 0:17:53'Whoever bought the flat has to allow enough to do the work.
0:17:53 > 0:17:57'Once renovated, how much could the property be worth?'
0:17:57 > 0:18:00When renovated,
0:18:00 > 0:18:04I would imagine, if the market stays the same as it is now,
0:18:04 > 0:18:09this would go on the market in the region of £325,000 and £350,000.
0:18:10 > 0:18:15Well, if you hadn't guessed already, I love this flat!
0:18:15 > 0:18:20It's packed with period features. There's scope for real improvement.
0:18:20 > 0:18:22A huge garden, for London.
0:18:22 > 0:18:25Plus, there is a fantastic margin to be had.
0:18:25 > 0:18:30Who agreed with me? Let's go to auction and find out.
0:18:33 > 0:18:39Lot 11 is Cricklewood, NW2, garden flat.
0:18:39 > 0:18:44Invite your bids on this. I'm not going below 200. Start from there.
0:18:44 > 0:18:47200 anywhere? 200.
0:18:47 > 0:18:52205? 205 standing up. 210?
0:18:52 > 0:18:55215? With you at 215.
0:18:55 > 0:18:58220? 225?
0:18:58 > 0:19:00230? 230.
0:19:00 > 0:19:02235?
0:19:02 > 0:19:05235. 240? 240.
0:19:05 > 0:19:08245? 245.
0:19:08 > 0:19:10250? 250.
0:19:10 > 0:19:14255? 251?
0:19:14 > 0:19:19251. 252? 253?
0:19:19 > 0:19:23252 with you. 253. Hard luck.
0:19:23 > 0:19:25254?
0:19:25 > 0:19:29255? 256?
0:19:29 > 0:19:31257? 258?
0:19:33 > 0:19:35259? 260?
0:19:37 > 0:19:38260. 261?
0:19:38 > 0:19:41262?
0:19:41 > 0:19:45Have a think. 261 with you.
0:19:45 > 0:19:48262 anywhere else? 262.
0:19:48 > 0:19:51New spot. 263? Sorry, I lost you. 263? Yeah?
0:19:51 > 0:19:53264?
0:19:53 > 0:19:55265? 266?
0:19:55 > 0:19:58267? 268? 269?
0:19:58 > 0:20:04270? 271? One more go? 271?
0:20:04 > 0:20:10I don't want you to home thinking, "Would he? Wouldn't he?" 272?
0:20:10 > 0:20:13He did. 273?
0:20:14 > 0:20:17272. 273?
0:20:17 > 0:20:20Anywhere else? 273?
0:20:20 > 0:20:22272 down here, first time.
0:20:22 > 0:20:26Second time. Third and last time. Have you all done?
0:20:26 > 0:20:29Sold 272.
0:20:29 > 0:20:34'That successful final bid of 272,000 was made by Andrew.
0:20:34 > 0:20:41'Originally from Poland, he's a developer who's lived in London since 1972.
0:20:41 > 0:20:43'I met him to find out more.'
0:20:45 > 0:20:50Andrew, congratulations! You got a place with bags of character.
0:20:50 > 0:20:53- Why did you want to buy this? - A long story.
0:20:53 > 0:20:58An established client of mine, a tenant, said, "Find me a place.
0:20:58 > 0:21:03"I'm going to sign a five-year lease at very good money.
0:21:03 > 0:21:07"But it must be two bedrooms, two bathrooms and a garden.
0:21:07 > 0:21:12"And it must be around West Hampstead, Cricklewood area."
0:21:12 > 0:21:18Had you spotted this property or did you just see it on auction day?
0:21:18 > 0:21:22No. I spotted this property on the internet from a catalogue.
0:21:22 > 0:21:29I came to the usual half an hour slot of viewing time and thought, "This just fits the bill."
0:21:29 > 0:21:34I called the client. He came to look from outside and said, "Done."
0:21:34 > 0:21:39- Who owns the property, then? You or your client?- I bought it.
0:21:39 > 0:21:42But it's going to be leased to them straightaway.
0:21:42 > 0:21:49- It sounds like you know what you're doing. Have you done this before? - I've got a few properties
0:21:49 > 0:21:53around my studio, and they're all working very well.
0:21:53 > 0:21:57- Your studio? What do you do? - I'm a photographer.
0:21:57 > 0:22:02The first time I bought a property, it was purely accident 15 years ago.
0:22:02 > 0:22:04I was driving to my studio
0:22:04 > 0:22:08and there was suddenly a big notice on a building next to me,
0:22:08 > 0:22:11"Property for sale in auction."
0:22:11 > 0:22:15We went to the auction and I happened to outbid everybody
0:22:15 > 0:22:19and the property's working very well ever since.
0:22:20 > 0:22:24'Andrew's dabbled in property for many years.
0:22:24 > 0:22:27'When his photographic work slowed down,
0:22:27 > 0:22:33'he worked full time as a developer, and has a substantial portfolio.
0:22:33 > 0:22:38'He concentrates on the affluent Hampstead and Maida Vale areas.
0:22:38 > 0:22:42'He self-financed the £272,000 he paid at auction for this flat.
0:22:42 > 0:22:46'So, what's the gameplan here?
0:22:46 > 0:22:48'Will he change the layout?'
0:22:49 > 0:22:54We have to put two bathrooms into this flat.
0:22:54 > 0:22:57One is at the very beginning of the flat.
0:22:57 > 0:23:01I want to open up and utilise the original door,
0:23:01 > 0:23:06bring the flat to its former glory with the entrance on the front.
0:23:06 > 0:23:10The entrance is on the side, which is not as attractive.
0:23:10 > 0:23:14So we probably will get rid of that bath and juggle the space
0:23:14 > 0:23:19and put two bathrooms here, just shower rooms with a loo.
0:23:19 > 0:23:22No bath tub. There is no space for that.
0:23:22 > 0:23:28- What sort of money have you got to spend? - I'm budgeting £15,000 to £20,000.
0:23:28 > 0:23:31More like 20, I'd say, maybe a little more.
0:23:31 > 0:23:37It depends which walls we have to move and what finishing we go for.
0:23:37 > 0:23:41'Andrew's hoping to have the flat ready in six months.
0:23:41 > 0:23:46'The start could be delayed as he has another property to finish off.
0:23:46 > 0:23:51'The pieces of Andrew's jigsaw are fitting together rather well.
0:23:51 > 0:23:54'He's got a crack squad of tradesmen standing by,
0:23:54 > 0:23:59'and a signed contract to rent to tenants for five years.'
0:23:59 > 0:24:02Congratulations. I hope the development goes really well.
0:24:02 > 0:24:05- It's been lovely meeting you. - Thank you very much.
0:24:11 > 0:24:13Andrew sounds like
0:24:13 > 0:24:17he's got more than enough experience to take on this renovation.
0:24:17 > 0:24:23Being a photographer, I expect excellent records of all the work.
0:24:23 > 0:24:26The time scale is generous, six months.
0:24:26 > 0:24:30Will £15,000 to £20,000 be enough to get a high-spec finish?
0:24:30 > 0:24:33Let's see how he gets on later in the programme.
0:24:34 > 0:24:39'Coming up, you're spoiled for choice with this place in Solihull.'
0:24:39 > 0:24:44This has got lots of options, and we like that.
0:24:44 > 0:24:51'In London, the experts were consulted BEFORE the walls came down.'
0:24:51 > 0:24:55Just to make sure it's not load-bearing.
0:24:55 > 0:25:00'And after ten months, Jo's renovation in Devon isn't finished.'
0:25:00 > 0:25:04Another five to six months. It is rather terrifying.
0:25:06 > 0:25:11'We're back in Plymouth, at this semi-detached bungalow.
0:25:11 > 0:25:14'It needed a lot of refurbishment,
0:25:14 > 0:25:18'especially in the kitchen and bathroom.
0:25:18 > 0:25:23'Property developer Jo bought it at auction for £133,000.
0:25:23 > 0:25:30'She had moved away from her other projects in Spain to build up her portfolio back in Britain.'
0:25:30 > 0:25:33Why did you buy it? What's it for?
0:25:33 > 0:25:36It was initially with a buy-to-let in mind.
0:25:36 > 0:25:42I'd like to keep it, though, to live in if I have to stay in England.
0:25:43 > 0:25:46'So, it wasn't just a rental opportunity.
0:25:46 > 0:25:49'It could one day be her home.
0:25:49 > 0:25:53'Ten months later, we caught up with her and her dog, Fuego,
0:25:53 > 0:25:56'to see how the project has gone.
0:25:57 > 0:26:02'That old cramped kitchen has been ripped out and opened up
0:26:02 > 0:26:05'with new appliances, units and fixtures.
0:26:05 > 0:26:08'It's now bright, airy and stylish.'
0:26:08 > 0:26:12We knocked through the wall, raised the ceiling,
0:26:12 > 0:26:15blocked up the window to get the units in,
0:26:15 > 0:26:20and put the sink there so you've got the view through the window.
0:26:20 > 0:26:24'There have been more great results in the conservatory.'
0:26:24 > 0:26:29This was a rusted-out conservatory with awful Crittall windows.
0:26:29 > 0:26:34They've been taken out, new timber put in and new glazing
0:26:34 > 0:26:36and solid insulation.
0:26:36 > 0:26:41It's a timber structure. And all retiled. The floor's been raised.
0:26:41 > 0:26:45It used to step down from the kitchen,
0:26:45 > 0:26:47which was rather unpleasant.
0:26:47 > 0:26:49'In the rest of the house,
0:26:49 > 0:26:54'the decor has been freshened up by using light colours.
0:26:54 > 0:27:00'Jo's also recarpeted, but not in a contemporary neutral style,
0:27:00 > 0:27:05'as she believes patterned carpets are in keeping with the house.
0:27:05 > 0:27:08'There are new gas fires to replace the old ones.
0:27:08 > 0:27:12'Things look a lot better in the bathroom,
0:27:12 > 0:27:15'which is modern, sleek and freshly tiled.
0:27:15 > 0:27:17'Jo hasn't stopped there.
0:27:17 > 0:27:22'She's managed to find a bit of room upstairs for another loo.'
0:27:22 > 0:27:27Being such a large house, it was ridiculous with just one bathroom.
0:27:27 > 0:27:29So the bedrooms are slightly...
0:27:29 > 0:27:33The width was taken off each bedroom,
0:27:33 > 0:27:37to allow for this shower room, which has worked very well.
0:27:37 > 0:27:42'If you're wondering where that shower room had been squeezed in,
0:27:42 > 0:27:45'it's right there between those two bedrooms.
0:27:52 > 0:27:56'Jo's not just managed to find extra space inside.
0:27:56 > 0:28:00'There's plenty more outside now, too.
0:28:03 > 0:28:08'The house came with a large chunk of land to one side.
0:28:08 > 0:28:14'It was previously overgrown with shrubs, but Jo's cleared that away.'
0:28:19 > 0:28:24In the garden, we've opened it out because we've cut down the trees
0:28:24 > 0:28:29and tried to incorporate it into the main garden.
0:28:29 > 0:28:33We've still got to continue with the inner garden wall,
0:28:33 > 0:28:40bring the soil level up a bit and down, sort of landscaped.
0:28:40 > 0:28:43It's been quite expensive, of course,
0:28:43 > 0:28:46but I think it's well worth it.
0:28:46 > 0:28:49'So far, Jo has spent £35,000 on the project,
0:28:49 > 0:28:53'including around £3,000 on the garden.
0:28:53 > 0:28:58'She thinks her total spend will take her up to around £43,000,
0:28:58 > 0:29:00'more than double her budget.
0:29:00 > 0:29:04'The work has mainly been done by her friend, Paul.
0:29:04 > 0:29:10'But the original time scale of two to three months has gone out the window.
0:29:10 > 0:29:14'Up till now, it's already taken ten months.'
0:29:14 > 0:29:18I should think the time scale involved
0:29:18 > 0:29:22with completion of this house is about...
0:29:22 > 0:29:25another five to six months.
0:29:25 > 0:29:30That is rather terrifying. I might have to leave off for a while.
0:29:30 > 0:29:33And resume. I don't know. It depends on the work.
0:29:33 > 0:29:38Paul may have to go and do some other work. I don't know.
0:29:38 > 0:29:41'The property's still work in progress,
0:29:41 > 0:29:44'but we asked two estate agents
0:29:44 > 0:29:47'to give their opinions on it so far.'
0:29:53 > 0:29:55The work that's been done
0:29:55 > 0:29:58has been to a very good standard.
0:29:58 > 0:30:02It's a credit to the owners, considering the previous.
0:30:02 > 0:30:07When they bought it, a few things really needed to be done.
0:30:07 > 0:30:09They've done a fantastic job.
0:30:09 > 0:30:14They've done an awful lot here. I'm a great fan of skimmed walls.
0:30:14 > 0:30:20You can paint them any colour. Nice kitchen. Nice bathrooms.
0:30:20 > 0:30:24UPVC windows and gas central heating so it ticks the right boxes.
0:30:24 > 0:30:28The added value comes with the side of the plot,
0:30:28 > 0:30:30clearing the trees away.
0:30:30 > 0:30:37The conservatory is an added feature, lots of natural light going through the property.
0:30:37 > 0:30:43'So, what could this property make on the rental market?'
0:30:43 > 0:30:45Rental value for the property
0:30:45 > 0:30:50would be between, per calendar month, £650 and £750.
0:30:50 > 0:30:54Rental value wise, we're looking at £750 per calendar month
0:30:54 > 0:30:57to about £800 per calendar month.
0:30:57 > 0:31:01'What does Jo make of those figures?'
0:31:01 > 0:31:04The rental value of £750 to £800
0:31:04 > 0:31:08is quite in line with what I would have expected.
0:31:08 > 0:31:13The other one was a little bit disappointing.
0:31:13 > 0:31:17'Jo's total spend here so far has been £35,000 on the renovation
0:31:17 > 0:31:22'plus the £133,000 she paid at auction.
0:31:22 > 0:31:28'If she were to sell now, she'd need it to make over £168,000 to show a profit.
0:31:28 > 0:31:30'What could it be worth?'
0:31:30 > 0:31:38We're probably looking at minimum figure of £190,000 up to about £200,000.
0:31:38 > 0:31:41'By the time the renovation's finished,
0:31:41 > 0:31:46'Jo reckons she'll have spent around £176,000,
0:31:46 > 0:31:49'not including the usual fees and expenses.'
0:31:49 > 0:31:52When the property has finally been finished
0:31:52 > 0:31:57I think the property would be valued between £180,000 and £190,000.
0:31:57 > 0:32:00180 seems rather on the low side,
0:32:00 > 0:32:08but 200 sounds quite good, really, because it's been quite an expensive project.
0:32:08 > 0:32:12'It seems there's still a profit to be made here,
0:32:12 > 0:32:15'either by renting or selling it.
0:32:15 > 0:32:18'I reckon that when all the work's eventually done,
0:32:18 > 0:32:21'Jo WILL be onto a winner.'
0:32:28 > 0:32:33Today, I'm in Olton, just outside Solihull in the West Midlands.
0:32:33 > 0:32:35This place has a literary history.
0:32:35 > 0:32:41The author of the Country Diary Of An Edwardian Lady, Edith Holden, lived here.
0:32:41 > 0:32:46Maybe the house I'm going to see is some big grand country affair!
0:32:52 > 0:32:54No, actually,
0:32:54 > 0:32:59I'm here to see this two-bedroom flat in a house conversion.
0:32:59 > 0:33:02It doesn't look much like a country house.
0:33:02 > 0:33:07For a guide price of offers over 60,000 quid, it's worth a look.
0:33:07 > 0:33:09'All looks promising.
0:33:09 > 0:33:14'It has a private entrance set back from the road and fenced off,
0:33:14 > 0:33:16'so security's good.
0:33:16 > 0:33:22'So far, the only nasty I can see is that there are fewer than 80 years left on the lease.
0:33:22 > 0:33:27'That could be a problem in future. Let's concentrate on the present.'
0:33:27 > 0:33:32What does this have in store? Straight through the door.
0:33:32 > 0:33:34First impressions are pretty good.
0:33:34 > 0:33:38Nice clean walls. White painted doors, always good.
0:33:38 > 0:33:44Box room there. Tiled floor in the entrance bit through to the kitchen.
0:33:44 > 0:33:49The kitchen itself. Double glazing, as the rest of the flat has. Units?
0:33:49 > 0:33:54They're not going to win a design award but perfectly practical.
0:33:54 > 0:34:00The decision on whether you'd renovate this kitchen depends on what you do with it.
0:34:00 > 0:34:07If you live here, you might want a bespoke kitchen. If you're going to rent it out, leave it as it is.
0:34:07 > 0:34:12'Just off the entrance is probably the second bedroom.
0:34:12 > 0:34:16'It's small but peaceful, with a view over the garden.'
0:34:16 > 0:34:20One thing that's obviously lacking is central heating.
0:34:20 > 0:34:26You've got these storage radiators and some kind of gas heating system.
0:34:26 > 0:34:32Probably worth the investment to get some kind of combi boiler in the property.
0:34:32 > 0:34:37But this is the lounge. I like the high ceilings, big windows.
0:34:37 > 0:34:41It's a nice space. There's a road outside.
0:34:41 > 0:34:46You might get some traffic noise but apart from that, a good size room.
0:34:48 > 0:34:53'The road is the main Warwick Road in Olton, and it's a busy one.
0:34:57 > 0:35:01'But every cloud has a silver lining which, in this case,
0:35:01 > 0:35:07'is that it's on the main bus route, so ideal for renting to commuters.'
0:35:07 > 0:35:11This is the main bedroom, and a good size it is, too.
0:35:11 > 0:35:16It's got me thinking. That other room, I said was the lounge.
0:35:16 > 0:35:18But you could swap it around.
0:35:18 > 0:35:22Have that as your bedroom, although you might get traffic noise,
0:35:22 > 0:35:25and have this as your lounge.
0:35:25 > 0:35:28You've got this patio door onto the garden.
0:35:28 > 0:35:35In the summer, you can have that open, have parties, it'd be very nice.
0:35:35 > 0:35:41Unlike a lot of flats, this one has lots of options. And we like that.
0:35:47 > 0:35:50'To sum up, this lot looks very promising.
0:35:50 > 0:35:55'And there's something else I have to show you outside.'
0:35:55 > 0:36:00A real benefit to the flat is that it's got this garden,
0:36:00 > 0:36:04including this amazing monkey puzzle tree. If that isn't enough...
0:36:04 > 0:36:09there's also a garage just over there.
0:36:09 > 0:36:13Absolutely fantastic additional features.
0:36:15 > 0:36:21'A garage, a massive garden, two bedrooms and in pretty good nick.
0:36:21 > 0:36:25'I'm impressed, but usually it's about location.
0:36:25 > 0:36:29'To find out about the area and how this flat fits into that,
0:36:29 > 0:36:34'I invited a local property expert to give me his opinion.'
0:36:34 > 0:36:40This is Olton, which is a suburb of Solihull. It's popular.
0:36:40 > 0:36:46The railway's half a mile away and you're straight into Birmingham.
0:36:47 > 0:36:52First impressions of this property, it's spacious, lovely and light.
0:36:52 > 0:36:55It's clean. Great for letting.
0:36:55 > 0:37:00Not a lot needs doing. It would benefit gas-fired central heating.
0:37:00 > 0:37:02'It seems we agree.
0:37:02 > 0:37:07'Any changes would only enhance it, as there's no need to fix it.'
0:37:07 > 0:37:09Rental value for this?
0:37:09 > 0:37:11Around £550 a month.
0:37:11 > 0:37:15On the market, I would say just under £100,000,
0:37:15 > 0:37:18with the hope of achieving around £90,000.
0:37:20 > 0:37:23What is there not to like about this flat?
0:37:23 > 0:37:30You've got the garden and the garage, and you can pretty much move in or rent it out as it is.
0:37:30 > 0:37:34If you can get it for anything like that £60,000 guide price,
0:37:34 > 0:37:37it's a fantastic one to go for.
0:37:37 > 0:37:40Let's see who bought it when it went under the hammer.
0:37:44 > 0:37:47At 50,000 to get us started...
0:37:47 > 0:37:51You couldn't resist it. At 50. What a buy this will be!
0:37:51 > 0:37:5560, madam? At 60. At 60. At 60.
0:37:55 > 0:37:58Is it 65, sir? Is it 70?
0:37:58 > 0:38:00Will two help you, madam? 67?
0:38:00 > 0:38:0267, and thank you.
0:38:02 > 0:38:05At 67. And 69.
0:38:05 > 0:38:0869. Is it 70? At 70 right on the front.
0:38:08 > 0:38:11Is it 71, sir? At 71. Is it two?
0:38:11 > 0:38:1372. Is it 73?
0:38:13 > 0:38:17Can we say 74? I want you to have it, sir. At 74.
0:38:17 > 0:38:22I want you to have it as well, sir. At 75. 76. Is it 77, sir?
0:38:22 > 0:38:2477. 78?
0:38:26 > 0:38:2879. Is it 80?
0:38:28 > 0:38:33At 79,000. Here we go again, then. Once, twice, third and last time.
0:38:33 > 0:38:37BANGS GAVEL Sold at 79,000. That is yours, sir.
0:38:37 > 0:38:39Congratulations.
0:38:39 > 0:38:41'The successful bidder was Sed.
0:38:41 > 0:38:48'Although he paid £19,000 over the guide price, he got it for a reasonable sum.
0:38:48 > 0:38:55'He comes from this area, so presumably knew what he was buying.
0:38:57 > 0:39:02'I met up with him to find out why it appealed to him.'
0:39:02 > 0:39:05Congratulations. Tell me why you wanted the flat.
0:39:05 > 0:39:07It was opportunistic, really.
0:39:07 > 0:39:12I was looking to buy houses and I saw one at the auction.
0:39:12 > 0:39:16It looked like a great deal. I came to have a look at it.
0:39:16 > 0:39:20It looked very good so I thought I'd make a cheeky bid.
0:39:20 > 0:39:24- And your cheeky bid got it. - My cheeky bid got it! Yeah.
0:39:24 > 0:39:30- I was quite excited.- What tempted you into property investment?
0:39:30 > 0:39:32Well, the house prices are going up.
0:39:32 > 0:39:37I was thinking if I leave it longer, I won't be able to buy anywhere.
0:39:37 > 0:39:41But I haven't got to the stage of settling down yet.
0:39:41 > 0:39:45I thought I'd buy the house and rent it out.
0:39:45 > 0:39:49I've got my foot on the ladder and insured against the future.
0:39:49 > 0:39:53- Have you got your own place? - I don't own it. I rent.
0:39:53 > 0:39:58Why...? He says, without stating the obvious! ..don't you live here?
0:39:58 > 0:40:02I've got a housemate, a friend of mine.
0:40:02 > 0:40:06I'd prefer to live with someone cos I like the company.
0:40:06 > 0:40:13The second bedroom's a bit small for a grown man with a double bed, Playstation and a bike.
0:40:13 > 0:40:15So I think I'll rent this one out.
0:40:18 > 0:40:21'So, this is an investment purchase.
0:40:21 > 0:40:25'It's not as though Sed would lose money renting it out,
0:40:25 > 0:40:31'as long as he can rent it out to cover his mortgage repayments.
0:40:31 > 0:40:36'It does mean that he has that first step on the property ladder.'
0:40:38 > 0:40:43- Tell me what you do when you're not buying houses.- I've got a job!
0:40:43 > 0:40:45I work in a hospital.
0:40:45 > 0:40:52I work in a little research team and the main aim is to write a programme to diagnose occupational asthma.
0:40:52 > 0:40:57- What's that?- It's asthma you have from something at work.
0:40:57 > 0:41:00If you're a welder, you might breathe in welding fumes,
0:41:00 > 0:41:03and that could give you asthma.
0:41:03 > 0:41:08If we take you away from the welding or give you a mask
0:41:08 > 0:41:13your asthma can clear up completely as long as you do it quickly enough.
0:41:13 > 0:41:16'That's certainly very important research.
0:41:16 > 0:41:20'Now Sed's got this to think about as well.'
0:41:20 > 0:41:23Tell me what you're going to do to it.
0:41:23 > 0:41:26- In theory...- Not do much. Central heating.
0:41:26 > 0:41:29I think that will help with renting it out.
0:41:29 > 0:41:33I'll probably paint it. I might do the carpets.
0:41:33 > 0:41:39I'll have a look round to see what else needs doing but, hopefully, nothing.
0:41:39 > 0:41:43- What budget have you got? - I've got a big budget. £20,000.
0:41:43 > 0:41:48- What?- Well, I think the house would sell for £100,000
0:41:48 > 0:41:50once everything's sorted out.
0:41:50 > 0:41:56And some money needs to be set aside for sorting out the lease.
0:41:56 > 0:41:59'I'm glad that Sed had done his homework.
0:41:59 > 0:42:05'There are only 76 years left on the lease, which could be a problem when he comes to sell.
0:42:05 > 0:42:10'Most mortgage companies are wary of lending on properties with leases
0:42:10 > 0:42:12'that have less than 65 years.
0:42:12 > 0:42:17'However, Sed has a plan. He's hoping to buy the freehold.
0:42:17 > 0:42:21'Leasehold issues would disappear
0:42:21 > 0:42:26'and he could charge other tenants ground rent after he sold his flat.
0:42:26 > 0:42:30'But first priority is to get it ready for rental.'
0:42:30 > 0:42:32What kind of time scale?
0:42:32 > 0:42:36As quickly as possible. It looks like there's not much to do.
0:42:36 > 0:42:40Hopefully, I'll get it rented out in two or three months.
0:42:40 > 0:42:47- Right.- Maybe when I'm ready to settle down, I'll sell it and buy a house that I want to live in.
0:42:47 > 0:42:49- Makes perfect sense.- Yeah.
0:42:49 > 0:42:53You'll be doing the work yourself or having people in?
0:42:53 > 0:42:59I'll probably paint myself and get someone to do the central heating and carpets.
0:42:59 > 0:43:02- You'll be here with a paintbrush? - Yeah.
0:43:02 > 0:43:07- Don't inhale those fumes.- Indeed. I'll have to get low VOC paint.
0:43:09 > 0:43:12On paper, it sounds pretty straightforward.
0:43:12 > 0:43:16A month to sort the place out. A reasonable budget.
0:43:16 > 0:43:20And the sort of place that will rent out pretty easily.
0:43:20 > 0:43:24The property world doesn't always work like that!
0:43:24 > 0:43:30But I'm sure Sed made a fantastic investment. Find out how he gets on later in the show.
0:43:33 > 0:43:40- It's been some time since we saw those properties.- Has it been plain sailing or a bumpy ride?
0:43:40 > 0:43:42Let's find out.
0:43:42 > 0:43:46'We return now to Cricklewood in northwest London.
0:43:46 > 0:43:52'Full-time developer Andrew had paid £272,000 for this two-bedroom garden flat,
0:43:52 > 0:43:54'which needed total refurbishment.
0:43:54 > 0:43:59'He bought it as he had a client who wanted to move to the area.
0:44:01 > 0:44:07'Over five months have passed since I first met Andrew.
0:44:07 > 0:44:11'The first obvious change is that access has been restored
0:44:11 > 0:44:13'to the original entrance,
0:44:13 > 0:44:18'that now has a new door to go with the replacement windows.
0:44:18 > 0:44:22'You now enter straight into the front living room,
0:44:22 > 0:44:27'as the dividing wall to the bathroom has been removed.
0:44:27 > 0:44:31'Sadly, all the original features have gone as well.
0:44:31 > 0:44:34'As Andrew explains, he gave a lot of thought
0:44:34 > 0:44:38'to how he could maximise the potential.'
0:44:38 > 0:44:40When I bought the property,
0:44:40 > 0:44:43and completion day arrived,
0:44:43 > 0:44:47I came to the place, sat down here for a day
0:44:47 > 0:44:52making little sketches and drawings how the property can be improved.
0:44:52 > 0:44:56I made up my mind to change this little pokey entrance,
0:44:56 > 0:44:58the original entrance to the flat,
0:44:58 > 0:45:01and reinstate the main door.
0:45:01 > 0:45:06There was a bathroom here. Also, there was a big partition here.
0:45:06 > 0:45:10A bit of luck, the wall was not load-bearing.
0:45:10 > 0:45:13We knocked it down, moved the bathroom.
0:45:13 > 0:45:18The new windows, that was requirement from building control.
0:45:18 > 0:45:23And new doors. So that's, in this room, more or less everything.
0:45:23 > 0:45:28'That loo washroom that Andrew added is the first of three in the flat.
0:45:28 > 0:45:33'Rather than move the kitchen, he decided to put one of the bedrooms
0:45:33 > 0:45:36'behind the living room.
0:45:36 > 0:45:40'It has an en suite bathroom and loo number two.
0:45:40 > 0:45:44'The layout in the kitchen has changed quite a bit.
0:45:44 > 0:45:48'It remains in its original position but walls have been moved
0:45:48 > 0:45:53'so that access to bedroom two is now through the kitchen.
0:45:53 > 0:45:57'But the original passageway has been put to much better use.'
0:45:57 > 0:46:03The entrance to this bedroom was here. That was a corridor.
0:46:03 > 0:46:09So I decided to put an en suite bath with a big shower head.
0:46:09 > 0:46:15Every foot of this flat is being utilised as a functional space.
0:46:17 > 0:46:23'Andrew paid 272,000 at auction, and has liaised closely with his client
0:46:23 > 0:46:26'to achieve this high quality finish.'
0:46:26 > 0:46:30I'm not very happy with one item, the front door.
0:46:30 > 0:46:33I ordered a different door.
0:46:33 > 0:46:40It was a plain glass and suddenly the door arrived with roses on it.
0:46:40 > 0:46:44We will change it but it will take a bit of time.
0:46:50 > 0:46:52'The garden was a mess.
0:46:52 > 0:46:58'It's been cleared and is ready for the tenants to plant what they like.
0:47:02 > 0:47:06'Andrew had originally budgeted 15,000 to 20,000.
0:47:06 > 0:47:08'So what was his final figure?'
0:47:08 > 0:47:12I know exactly how much I spent.
0:47:12 > 0:47:17It is frightening. It was just under £30,000.
0:47:17 > 0:47:22But, initially, I'd planned only one and a half bathrooms.
0:47:22 > 0:47:24We've installed additional bathroom.
0:47:24 > 0:47:28It took considerable amount of money. Plus, we decided
0:47:28 > 0:47:33not to repair anything, just rip it all out and have it brand new.
0:47:33 > 0:47:37'That's taken Andrew's budget £10,000 over his upper limit.
0:47:37 > 0:47:42'Let's hope it's worth it. Is the plan still to rent it out?'
0:47:42 > 0:47:47My plans remain the same. I'll let it out to tenants.
0:47:47 > 0:47:53They already signed the agreement. The money will replenish the missing funds!
0:47:54 > 0:48:00Two local estate agents are on the way to give their verdict.
0:48:00 > 0:48:02The change is utterly dramatic.
0:48:02 > 0:48:07He's made a wreck of a flat into this magnificent modern home.
0:48:07 > 0:48:12He's done the flat to a high spec. It shows that he's spent money well.
0:48:12 > 0:48:16I did not imagine this layout when I came to see it.
0:48:16 > 0:48:20I thought he would refurbish what was in situ.
0:48:20 > 0:48:24I'm not a great fan when you've got a bedroom off a kitchen.
0:48:24 > 0:48:29It's nice having an en suite and the wet room's very trendy.
0:48:29 > 0:48:35He has put three WCs in which, for a two-bedroom flat, is probably one too many.
0:48:35 > 0:48:38'So has the money gone down the pan?
0:48:38 > 0:48:42'How much rental income could the flat achieve?'
0:48:42 > 0:48:46There's a reasonable demand for two-bedroom flats.
0:48:46 > 0:48:50Somewhere between £1,200 and £1,300 a calendar month.
0:48:50 > 0:48:56I certainly suggest that he could easily achieve in the region of £1,500 per calendar month.
0:48:56 > 0:49:01The rental incomes, probably for the area, it's quite good.
0:49:01 > 0:49:06However, I managed to achieve better figures with my direct contact
0:49:06 > 0:49:12at £400 a week, which is about £1,600, £1,700 a month.
0:49:12 > 0:49:17'So the quality of the finish is reflected in the rental figure.
0:49:17 > 0:49:20'What's the flat now worth?
0:49:20 > 0:49:26'Andy paid 272,000 for it and a further £30,000 on the work.
0:49:26 > 0:49:29'302,000 in total.'
0:49:29 > 0:49:35I would value this flat...at £395,000 in its current condition.
0:49:35 > 0:49:40I would think this should be worth something in the region of 375,
0:49:40 > 0:49:43on the market at just under 400,000.
0:49:43 > 0:49:47'Wow! A potential gross profit of at least 73,000,
0:49:47 > 0:49:52'before the usual selling expenses - IF he decided to sell.'
0:49:52 > 0:49:55I am impressed with these figures.
0:49:55 > 0:50:03Because I was personally estimating 340,000.
0:50:03 > 0:50:06So this is a really nice bonus.
0:50:06 > 0:50:09I still won't sell, but it's nice to know.
0:50:09 > 0:50:16'Andrew normally buys in the grander suburbs of Maida Vale and West Hampstead.
0:50:16 > 0:50:19'Would he consider buying again in this part of town?'
0:50:19 > 0:50:21I would look at Cricklewood again.
0:50:21 > 0:50:25You have to be very careful what you choose.
0:50:25 > 0:50:29The more risk you take, the better profits you can make.
0:50:29 > 0:50:34You can also lose more money so you have to be personally responsible
0:50:34 > 0:50:36for your actions.
0:50:40 > 0:50:44'We return now to check on the progress of this ground floor flat
0:50:44 > 0:50:46'in Solihull.
0:50:46 > 0:50:50'Earlier in the programme, Sed, an analyst with the NHS,
0:50:50 > 0:50:55'had paid £79,000 for this ground floor apartment,
0:50:55 > 0:51:00'which he planned to refurbish and rent out as quickly as possible.
0:51:00 > 0:51:05'It's almost three months and the progress has been a little slow.
0:51:05 > 0:51:08'The second bedroom has been decorated
0:51:08 > 0:51:12'and the kitchen has a new cooker and fridge.
0:51:12 > 0:51:14'Two big changes have occurred.
0:51:14 > 0:51:18'The first being a major rethink about prospects for the property.'
0:51:18 > 0:51:24I was planning to rent this place but shortly after I bought it,
0:51:24 > 0:51:28we got given notice on the place I was living in.
0:51:28 > 0:51:31It made sense to move in, so that's what we're doing.
0:51:35 > 0:51:40'Sed had originally thought this flat would be too small
0:51:40 > 0:51:44'for him and his mate, with all their bits and pieces.
0:51:44 > 0:51:47'But needs must, I suppose.
0:51:47 > 0:51:53'It meant that there was no urgency to improve the property for rental.
0:51:53 > 0:51:57'What's been the main progress, and what's left to do?'
0:51:57 > 0:52:01Since I bought the place I've had central heating put in.
0:52:01 > 0:52:05I've had quotes for various work, mainly to do with damp.
0:52:05 > 0:52:07There's damp in the small bedroom.
0:52:07 > 0:52:11The wall outside needs to be re-screeded.
0:52:11 > 0:52:16There's a couple of holes in outside walls where the gas heaters were.
0:52:16 > 0:52:22I will probably do the carpets, although now me and my housemate are living here,
0:52:22 > 0:52:26it seems a waste to do the carpets now as we'll get them dirty!
0:52:26 > 0:52:31'The carpet can wait because the second thing that changed plans
0:52:31 > 0:52:36'occurred when Sed's builder found a bit more space than anticipated.'
0:52:36 > 0:52:41My builder Dan was knocking a hole in the wall here.
0:52:41 > 0:52:46The stairs go up to the flat above and we were putting in a cupboard.
0:52:46 > 0:52:50It's a small flat so if the storage could be there, it would be great.
0:52:50 > 0:52:56Dan made the hole, poked his head through and found stairs going down.
0:52:57 > 0:53:01We went downstairs and found this amazing cellar,
0:53:01 > 0:53:05which is damp, but it's big and exciting so I'm very pleased.
0:53:05 > 0:53:09'Wow! What a find! But there's a problem.
0:53:09 > 0:53:12'Like lots of cellars, it's damp,
0:53:12 > 0:53:17'and that meant unexpected work had to be done in the main bedroom.'
0:53:17 > 0:53:22I was planning to do nothing in this room but then we found the cellar,
0:53:22 > 0:53:26and we saw water literally dripping off the beams.
0:53:26 > 0:53:30So the whole of this floor came up. The beams went back in.
0:53:30 > 0:53:36It's had a new carpet, a bit of replastering and been repainted.
0:53:36 > 0:53:42'As the lease was short, Sed had planned to try and buy the freehold.
0:53:42 > 0:53:49'That's been shelved, as the owner of one of the flats was proving hard to track down.
0:53:49 > 0:53:53'However, Sed has found the cellar, but when he started to decorate
0:53:53 > 0:53:57'he could sense the damp down there and the condensation,
0:53:57 > 0:54:00'but he carried on regardless.'
0:54:00 > 0:54:02It was all splotchy.
0:54:02 > 0:54:06I haven't done much painting so I thought maybe it's too cold
0:54:06 > 0:54:09so I turned the heating really high
0:54:09 > 0:54:12and I was painting practically naked, it was so hot.
0:54:12 > 0:54:17'Oh-er. But can he spare his blushes on the budget?
0:54:17 > 0:54:21'He hoped to do it for £5,000.'
0:54:21 > 0:54:27I have spent about five so far. Probably nearer six with the cellar.
0:54:27 > 0:54:30'But the big job now is the cellar.
0:54:30 > 0:54:32'How much could that cost?'
0:54:32 > 0:54:36I've had some quotes to turn it into a bedroom with a window.
0:54:36 > 0:54:40It would cost, I would imagine, about £20,000.
0:54:40 > 0:54:45To turn it into just a room without a window, probably nearer ten.
0:54:45 > 0:54:50'I'm not sure it's worth it, as he's planning to move out in nine months.
0:54:53 > 0:54:57'Time to see what two local estate agents will advise.'
0:54:57 > 0:55:00The main change that's been done
0:55:00 > 0:55:05is the gas central heating, which has made a massive difference.
0:55:05 > 0:55:08There's a lot of decoration to do.
0:55:08 > 0:55:12The owner's part way through doing a renovation.
0:55:12 > 0:55:16Sadly, a lot of original features
0:55:16 > 0:55:18have been taken away.
0:55:18 > 0:55:24The best use of the cellar would be another bedroom. An en suite as well would be great.
0:55:24 > 0:55:29It's not worth developing a cellar other than as a cellar.
0:55:29 > 0:55:33The cost of putting in proper damp-proof coursing, tanking,
0:55:33 > 0:55:38et cetera, far outweighs the likely gain.
0:55:38 > 0:55:40A cellar is a cellar.
0:55:40 > 0:55:43'Can't argue with that.
0:55:43 > 0:55:49'If Sed did decide to sell, how much could he get if he left the cellar as it is
0:55:49 > 0:55:55'and just gave the flat a comprehensive makeover?
0:55:55 > 0:55:58'Remember, he paid £79,000 on auction day,
0:55:58 > 0:56:04'and has spent £6,000 so far, making a total of £85,000.'
0:56:04 > 0:56:10We would value this at a figure of between £95,000 and £100,000,
0:56:10 > 0:56:13depending on its final presentation.
0:56:13 > 0:56:19I value the property at just below 100,000 with the hope of achieving anything over 90.
0:56:19 > 0:56:26100,000 is what I was thinking it was worth, which is why I bought it for 80 and had a budget of 20.
0:56:26 > 0:56:29Yeah, I'm happy with that.
0:56:29 > 0:56:34'It seems that Sed is getting the property developer's bug.
0:56:34 > 0:56:39'He's bought another property, so will he be on the lookout for more?'
0:56:39 > 0:56:41I have another house,
0:56:41 > 0:56:44which is on the market now.
0:56:44 > 0:56:48And my friend Dan, who's a builder who's been helping out,
0:56:48 > 0:56:51is keen to do some with me, so maybe.
0:56:54 > 0:56:58We'll be back next time with more tales from the auction rooms.
0:56:58 > 0:57:02Join us then for more Homes Under The Hammer. Goodbye.
0:57:24 > 0:57:26Subtitles by Red Bee Media Ltd