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The value of homes can go down as well as up. | 0:00:02 | 0:00:05 | |
So it pays to buy at the right price. | 0:00:05 | 0:00:08 | |
One way to do that is to buy your home under the hammer. | 0:00:08 | 0:00:12 | |
If you'd like to have a go at buying at auction, now could be the perfect time to start. | 0:00:37 | 0:00:43 | |
The market is always changing so you have to judge the best time to buy. | 0:00:43 | 0:00:48 | |
-Today's bidders put their money on the line. -Here's what they bought. | 0:00:48 | 0:00:53 | |
'In Cheshire, there's big scope for this little bungalow.' | 0:00:54 | 0:00:58 | |
It's a good size space. Overall, I'm loving this place. | 0:00:58 | 0:01:03 | |
'I need some extra space in this London semi.' | 0:01:03 | 0:01:07 | |
The answer to this problem may lie the other side of this wall. | 0:01:07 | 0:01:13 | |
'I look at this Victorian mid-terrace in Derby, and wonder if it's all it claims to be.' | 0:01:14 | 0:01:20 | |
How the heck you call THAT a third bedroom? | 0:01:20 | 0:01:24 | |
'These properties have been sold. | 0:01:25 | 0:01:28 | |
'We'll find out who bought them and what they paid when they went under the hammer.' | 0:01:28 | 0:01:33 | |
'I'm in the Cheshire town of Nantwich. | 0:01:36 | 0:01:39 | |
'It's steeped in history, with the buildings to prove it. | 0:01:39 | 0:01:43 | |
'This beautiful place is experiencing a renaissance, | 0:01:43 | 0:01:47 | |
'as independent shops and cafes | 0:01:47 | 0:01:49 | |
'have been creeping in, attracting new admirers.' | 0:01:49 | 0:01:53 | |
Nantwich is a desirable place to live and property prices are quite high as a result. | 0:01:53 | 0:02:00 | |
When you hear about a two-bedroom bungalow with a guide price of 115,000 quid | 0:02:00 | 0:02:06 | |
you think it's got to be worth a lot more. | 0:02:06 | 0:02:09 | |
It looks a bit dated outside. Let's see what it's like inside. | 0:02:09 | 0:02:15 | |
'It's not just dated, it looks pretty unkempt, too. | 0:02:15 | 0:02:19 | |
'It's been empty for over two years. | 0:02:19 | 0:02:22 | |
'That doesn't mean it doesn't have potential, though.' | 0:02:22 | 0:02:27 | |
So, what have we got? Wow! | 0:02:29 | 0:02:31 | |
Nice entrance! A really wide hallway. | 0:02:31 | 0:02:35 | |
And a parquet floor. I'd love to see that sorted out. | 0:02:35 | 0:02:39 | |
Two bedrooms. That's the first one. Parquet floor through there. | 0:02:39 | 0:02:45 | |
It's huge and it's got an open fire. You've got the bathroom there. | 0:02:45 | 0:02:49 | |
The second bedroom. It's interesting both bedrooms are on the front. | 0:02:49 | 0:02:55 | |
Both got open fires. Really nice. | 0:02:55 | 0:02:57 | |
Through to the rear, where the kitchen is. Good size. | 0:02:57 | 0:03:01 | |
You've got a pantry. I mean, it's terribly in need of some work! | 0:03:01 | 0:03:06 | |
Wants completely stripping out, but it's a good size. | 0:03:06 | 0:03:09 | |
The whole bungalow... It's really surprising. | 0:03:09 | 0:03:13 | |
Through here, you've got a utility area. | 0:03:13 | 0:03:16 | |
A place where coal used to be stored. | 0:03:16 | 0:03:20 | |
Fantastic for your washing machine. Views onto the garden. | 0:03:20 | 0:03:24 | |
It's fantastic! | 0:03:24 | 0:03:26 | |
# Fantastic day! # | 0:03:26 | 0:03:31 | |
'Looking past the rundown state, | 0:03:31 | 0:03:34 | |
'there's plenty of space. | 0:03:34 | 0:03:37 | |
'Also, the bathroom's a decent size, though obviously needs modernising.' | 0:03:37 | 0:03:42 | |
Through into a living room area. Not a bad size. I like the open fire. | 0:03:42 | 0:03:49 | |
But, uh-oh! What is going on here? | 0:03:49 | 0:03:51 | |
That is textbook damp. Look at the mould that's growing on there. | 0:03:51 | 0:03:59 | |
Mustn't get too enthusiastic! Be nice in a biology class. | 0:03:59 | 0:04:03 | |
In a house, it's not ideal. What's causing it? | 0:04:03 | 0:04:07 | |
Something to do with this bay window. I need to go outside. | 0:04:07 | 0:04:12 | |
'Damp is a common problem with houses that have been unoccupied. | 0:04:12 | 0:04:18 | |
'If you can find the cause, | 0:04:18 | 0:04:21 | |
'you can usually find the solution.' | 0:04:21 | 0:04:23 | |
It's not exactly rocket science. | 0:04:23 | 0:04:26 | |
It looks like the covering over that bay window has gone. | 0:04:26 | 0:04:30 | |
My guess is it was lead and it's been stolen. | 0:04:30 | 0:04:34 | |
The cast iron guttering has also gone. | 0:04:34 | 0:04:37 | |
It's not going to be that expensive to sort out. | 0:04:37 | 0:04:40 | |
Replace the covering and that should solve that problem. | 0:04:40 | 0:04:45 | |
While I'm out here, here's a nice bonus. A garden! | 0:04:45 | 0:04:49 | |
Fantastic. It needs sorting out, but it's a good size space. | 0:04:49 | 0:04:54 | |
Overall, I'm loving this place. | 0:04:54 | 0:04:57 | |
'You could extend the bungalow, making it a three-bed. | 0:04:57 | 0:05:01 | |
'Or you could knock it down and put up a couple of new-builds. | 0:05:01 | 0:05:06 | |
'I asked along a local estate agent to hear his thoughts.' | 0:05:06 | 0:05:12 | |
An idea would be to knock the property down | 0:05:12 | 0:05:15 | |
and build a pair of semi-detached houses on here | 0:05:15 | 0:05:20 | |
for greater return on my investment. | 0:05:20 | 0:05:22 | |
'If you wanted to instead restore it to its former glory, | 0:05:22 | 0:05:27 | |
'it could rent for up to £625 per month. | 0:05:27 | 0:05:30 | |
'But how much could it sell for?' | 0:05:30 | 0:05:34 | |
If it was kept as a two-bedroomed detached bungalow, | 0:05:34 | 0:05:37 | |
I would recommend it going on the market in the region of £200,000. | 0:05:37 | 0:05:43 | |
There is room to expand it into a three-bedroomed bungalow, with land to the rear of the property. | 0:05:43 | 0:05:50 | |
If you were to do that, I would recommend you put as a resale value | 0:05:50 | 0:05:55 | |
somewhere in the region of £240,000 to £250,000. | 0:05:55 | 0:05:59 | |
What a surprising little property this turned out to be. | 0:06:01 | 0:06:05 | |
It's a bungalow with lots of options. | 0:06:05 | 0:06:07 | |
Extend. Knock it down and build something in its place. | 0:06:07 | 0:06:11 | |
I think it's a great one to go for. Who fancied it when it went under the hammer? | 0:06:11 | 0:06:17 | |
Lot number 7. Nantwich. | 0:06:17 | 0:06:20 | |
80,000, going to say. | 0:06:20 | 0:06:22 | |
80 I'm bid. 85 is it now? 85 it is. | 0:06:22 | 0:06:26 | |
£90,000. At £90,000. 95? | 0:06:26 | 0:06:30 | |
£95,000. 100? | 0:06:31 | 0:06:33 | |
£100,000. 105? 105. 106? | 0:06:33 | 0:06:38 | |
107. 108. 109. | 0:06:38 | 0:06:40 | |
110. 111. 112. | 0:06:40 | 0:06:43 | |
113. 114. 115. | 0:06:43 | 0:06:47 | |
116. 117. 118. 119. | 0:06:47 | 0:06:52 | |
120. 121. | 0:06:52 | 0:06:54 | |
Yeah? 122. 123. | 0:06:54 | 0:06:55 | |
124. | 0:06:55 | 0:06:57 | |
125. 126. 127. 128. | 0:06:57 | 0:07:01 | |
129. 139. 131. | 0:07:01 | 0:07:04 | |
132. 133. | 0:07:04 | 0:07:07 | |
At £133,000... | 0:07:07 | 0:07:10 | |
134. 135. 136. 137. | 0:07:10 | 0:07:13 | |
Yes? 138. 139. | 0:07:13 | 0:07:17 | |
140. 141. | 0:07:17 | 0:07:18 | |
Shaking his head. With you, sir, at 141,000. | 0:07:20 | 0:07:24 | |
At 141,000 for the first time. | 0:07:24 | 0:07:28 | |
At 141 for the second time. | 0:07:29 | 0:07:32 | |
Third and final time at £141,000... | 0:07:32 | 0:07:37 | |
It's your lot, sir. Well done. | 0:07:38 | 0:07:40 | |
'The successful bid of 141,000 was made by local entrepreneur Tony. | 0:07:40 | 0:07:47 | |
'I wanted to find out why he paid £26,000 over the guide price.' | 0:07:47 | 0:07:52 | |
I fell in love with the property. | 0:07:52 | 0:07:55 | |
Bungalows are highly sought-after in the area, which made it an attractive proposition. | 0:07:55 | 0:08:02 | |
When I saw the guide price, it was one I was very keen to get. | 0:08:02 | 0:08:06 | |
So you bought it for you to do up, or what? | 0:08:06 | 0:08:10 | |
It's basically part of a 20-year plan. | 0:08:10 | 0:08:13 | |
I'm buying a number of properties in the area. | 0:08:13 | 0:08:17 | |
I've got one very close by. This is my second property. | 0:08:17 | 0:08:21 | |
I'm looking to rent it out so it'll be refurbished to a high standard. | 0:08:21 | 0:08:25 | |
-What's your experience? -In terms of property, very little, to be fair. | 0:08:25 | 0:08:31 | |
-What do you do? -I run a computer company. | 0:08:31 | 0:08:34 | |
-We make computers that make special effects for films. -Wow! | 0:08:34 | 0:08:38 | |
I stepped away from it four years ago. It's run for me now. | 0:08:38 | 0:08:42 | |
It's a small business. | 0:08:42 | 0:08:44 | |
Just to follow a passion, really, | 0:08:44 | 0:08:47 | |
-I became a professional dance teacher as well. -A dance teacher? Fantastic! | 0:08:47 | 0:08:53 | |
-It keeps me fit. -What kind of dancing? | 0:08:53 | 0:08:56 | |
The main one I do is ceroc, a modern French jive, | 0:08:56 | 0:08:59 | |
probably the most popular partner dancing in the world, and great fun. | 0:08:59 | 0:09:05 | |
'Must give it a go some time! | 0:09:05 | 0:09:07 | |
'Tony's 20-year plan is to make enough money from development | 0:09:07 | 0:09:11 | |
'for a pension when he retires. | 0:09:11 | 0:09:14 | |
'This is his second property and I was intrigued to know what he was going to do with it.' | 0:09:16 | 0:09:23 | |
The kitchen, as is, is going to be converted into a third bedroom. | 0:09:23 | 0:09:27 | |
We'll have three large double bedrooms. | 0:09:27 | 0:09:30 | |
The lounge at the moment is fairly small. | 0:09:30 | 0:09:34 | |
We're going to be creating an extension at the back | 0:09:34 | 0:09:38 | |
with a pitch roof coming away from the property. | 0:09:38 | 0:09:41 | |
Then that will link in to the extension. | 0:09:41 | 0:09:45 | |
-The lounge will be 21, 22 foot long. -Wow. | 0:09:45 | 0:09:48 | |
By about 17 foot wide, in an L-shape. | 0:09:48 | 0:09:53 | |
Which is proportionate to the bedrooms in the property. | 0:09:53 | 0:09:57 | |
Then the utility room, as is, will become the new kitchen. | 0:09:57 | 0:10:02 | |
'The plans sound good but I wonder if Tony thought about knocking it down and rebuilding.' | 0:10:02 | 0:10:09 | |
It's something I looked at and had a few tentative enquiries to the planning department. | 0:10:12 | 0:10:18 | |
I felt that access was going to be quite restrictive. | 0:10:18 | 0:10:22 | |
It is a bungalow and they are in high demand. | 0:10:22 | 0:10:25 | |
I felt that it was probably safer, as it's my first project, | 0:10:25 | 0:10:30 | |
to stick with what I've got. | 0:10:30 | 0:10:32 | |
At least I've then got a property which I know is desirable. | 0:10:32 | 0:10:37 | |
'That's pretty sensible, really. | 0:10:37 | 0:10:39 | |
'Tony paid 141,000 for this bungalow | 0:10:39 | 0:10:42 | |
'and has a further budget of 40,000. | 0:10:42 | 0:10:46 | |
'He discovered that he can get a grant of £15,000 from the council.' | 0:10:46 | 0:10:50 | |
The property's been empty for more than two years. | 0:10:50 | 0:10:54 | |
It makes me eligible for the landlord regeneration scheme. | 0:10:54 | 0:10:58 | |
'The council takes charge of the lettings for five years. | 0:10:58 | 0:11:02 | |
'They give Tony a list of tenants, | 0:11:02 | 0:11:05 | |
'and the council pay the market rental rate. | 0:11:05 | 0:11:08 | |
'Sounds a good idea. | 0:11:08 | 0:11:10 | |
'How long does he think the renovation is going to take?' | 0:11:10 | 0:11:15 | |
-Six to seven weeks. -What? Including the extension? -Yeah. -Ha! | 0:11:18 | 0:11:24 | |
I paid cash for the property. The longer it's empty, in theory, I'm losing money. | 0:11:25 | 0:11:32 | |
But I'm not on a strict deadline. If it takes ten weeks, that's fine. | 0:11:32 | 0:11:37 | |
'Tony seems quite relaxed about the timescale, but was he just as laid back at the auction? | 0:11:37 | 0:11:44 | |
'It was the first time he'd bought under the hammer.' | 0:11:44 | 0:11:48 | |
It was great! Fantastic! I thought I'd be nervous. | 0:11:48 | 0:11:52 | |
The bidding was going back and forth. | 0:11:52 | 0:11:55 | |
My head was like a nodding dog! Must have looked ridiculous! | 0:11:55 | 0:12:00 | |
-I'm delighted you got it. Congratulations. -Thanks, Martin. God bless you. | 0:12:00 | 0:12:06 | |
I think Tony picked up a really good property for the second one in his 20-year plan. | 0:12:08 | 0:12:14 | |
It is great to set your sights and have a goal like Tony has. | 0:12:14 | 0:12:19 | |
In terms of what he's going to do, that extension, is it worth doing? | 0:12:19 | 0:12:24 | |
I'm not sure, and certainly his timescale is a little optimistic. | 0:12:24 | 0:12:29 | |
You can find out if it'll be a slow waltz | 0:12:29 | 0:12:32 | |
or a quickstep to success for Tony later in in the show. | 0:12:32 | 0:12:37 | |
'I'm in southeast London today, in Plumstead, | 0:12:43 | 0:12:46 | |
'a few miles from Woolwich, | 0:12:46 | 0:12:49 | |
'to see a property that's typical of the area. | 0:12:49 | 0:12:52 | |
'It's a 1930s three-bed semi | 0:12:52 | 0:12:55 | |
'with off-street parking and a sizeable garden. | 0:12:55 | 0:12:59 | |
'It sits right on the edge of the conservation area Plumstead Common.' | 0:12:59 | 0:13:04 | |
That may or may not have implications for doing this house up. We'll talk about that later. | 0:13:08 | 0:13:16 | |
It's got three bedrooms. The guide price was 160,000 to 165,000. | 0:13:16 | 0:13:21 | |
The windows look like they're brand new. | 0:13:21 | 0:13:25 | |
I love the period arch and those bays. | 0:13:25 | 0:13:28 | |
Will there be any surprises inside? Let's take a look. | 0:13:28 | 0:13:32 | |
'This could be a typical three-bed semi in need of modernisation. | 0:13:32 | 0:13:38 | |
'You know that deal - new kitchen, bathroom, redecoration throughout. | 0:13:38 | 0:13:43 | |
'Auction properties of this age usually need all of the above, | 0:13:43 | 0:13:48 | |
'but that double glazing gives me positive vibes.' | 0:13:48 | 0:13:52 | |
# ..Sweetest feeling Baby, the sweetest | 0:13:53 | 0:13:57 | |
# Sweetest feeling... # | 0:13:57 | 0:13:58 | |
Now...that IS a surprise. | 0:14:00 | 0:14:04 | |
It's like the decorating fairies have been in | 0:14:04 | 0:14:07 | |
and completely revamped this place. | 0:14:07 | 0:14:10 | |
You can smell fresh paint. It's been decorated. | 0:14:10 | 0:14:13 | |
There's no banister, so that's dangerous as it is. | 0:14:13 | 0:14:18 | |
A big store cupboard in there | 0:14:18 | 0:14:20 | |
and a very disappointing kitchen. | 0:14:20 | 0:14:23 | |
This kitchen is tiny, not big enough for a three-bedroom house. | 0:14:23 | 0:14:28 | |
But I have a feeling that the answer to this problem may lie the other side of this wall. | 0:14:28 | 0:14:35 | |
A-ha! As I suspected! | 0:14:36 | 0:14:39 | |
Whoever had this home previously has taken this wall out | 0:14:39 | 0:14:43 | |
to make these two rooms one - the lounge here, the dining room here. | 0:14:43 | 0:14:47 | |
I wouldn't have taken this wall out. I'd put this wall back up. | 0:14:47 | 0:14:52 | |
I would take this wall out here to really open the kitchen up. | 0:14:52 | 0:14:56 | |
You've got room for a lovely big breakfast table, | 0:14:56 | 0:15:00 | |
access into the garden, then this will be a fantastic family home. | 0:15:00 | 0:15:05 | |
As it stands at the moment, that kitchen is too small. | 0:15:05 | 0:15:09 | |
'Before any walls are removed, check they aren't supporting ones. | 0:15:09 | 0:15:14 | |
'In this case, I don't think that's a problem.' | 0:15:14 | 0:15:18 | |
Let's have a look upstairs. We've got a bathroom through here. | 0:15:18 | 0:15:22 | |
That does need an update. | 0:15:22 | 0:15:24 | |
You know I said it's all been recently decorated? | 0:15:24 | 0:15:28 | |
On close inspection, it just looks as though all the rooms have had | 0:15:28 | 0:15:33 | |
the old-fashioned wallpaper painted, the tiles have just been painted. | 0:15:33 | 0:15:39 | |
You've got a bedroom here. | 0:15:39 | 0:15:42 | |
Really nice bedroom to the front and, typically for a 1930s house, | 0:15:42 | 0:15:47 | |
you've got the box room. | 0:15:47 | 0:15:49 | |
You can't really call it bedroom. | 0:15:49 | 0:15:51 | |
It would be OK as a nursery or a good size office space. | 0:15:51 | 0:15:55 | |
You know what? It's a cool house. | 0:15:55 | 0:15:58 | |
Big garden, off-street parking - for the price, you've got a good one. | 0:15:58 | 0:16:03 | |
'The space that's lacking in bedroom three | 0:16:03 | 0:16:06 | |
'is more than made up for by the huge back garden.' | 0:16:06 | 0:16:10 | |
There's no getting away from it. It's a wild garden out here. | 0:16:10 | 0:16:15 | |
Lots of junk you'd need to clear out. | 0:16:15 | 0:16:18 | |
You've got about 120 foot of space to play with so it's quite exciting. | 0:16:18 | 0:16:22 | |
I would get rid of this old shed. You've got a garage up the top. | 0:16:22 | 0:16:28 | |
Once it's been cleared out, maybe lay some patio, a pergola overhead. | 0:16:28 | 0:16:32 | |
You've got the makings of a really nice family garden. | 0:16:32 | 0:16:36 | |
'An extension could be an option, | 0:16:36 | 0:16:40 | |
'although there may be issues being so close to that conservation area. | 0:16:40 | 0:16:46 | |
'Let's see what a local estate agent says.' | 0:16:46 | 0:16:48 | |
Plumstead conservation area is a quarter of a mile from here. | 0:16:48 | 0:16:52 | |
It's an area of listed properties | 0:16:52 | 0:16:55 | |
where you can't change the exterior without permission from the council. | 0:16:55 | 0:17:01 | |
These properties are not listed. It's primarily the period houses. | 0:17:01 | 0:17:06 | |
These are 1930s houses. It doesn't apply to these, but this is a very sought-after location. | 0:17:06 | 0:17:13 | |
'The sky's the limit, then, | 0:17:13 | 0:17:15 | |
'but a sensible investor would keep their feet on the ground.' | 0:17:15 | 0:17:20 | |
In my opinion, there needs to be spent only £10,000 to £15,000. | 0:17:20 | 0:17:25 | |
The kitchen and bathroom need to be replaced, wiring needs to be done. | 0:17:25 | 0:17:30 | |
Extending would be viable for the future. | 0:17:30 | 0:17:33 | |
I don't think you'd get an immediate return. | 0:17:33 | 0:17:37 | |
It's a good configuration. 1930s houses are well-built. | 0:17:37 | 0:17:41 | |
A solid property and a very desirable road. | 0:17:41 | 0:17:44 | |
'Once it's completed, will the value of the property be as desirable?' | 0:17:44 | 0:17:49 | |
If this property was refurbished, | 0:17:49 | 0:17:51 | |
I would place it on the market between £225,000 and £230,000. | 0:17:51 | 0:17:56 | |
The going rate for rental properties would be between £900 and £950 per calendar month. | 0:17:56 | 0:18:03 | |
This house is ready to move into. All it needs is carpets and sorting out that kitchen. | 0:18:04 | 0:18:10 | |
You could spend cash on an extension but you might not get your money back. | 0:18:10 | 0:18:16 | |
Let's see who placed that winning bid at the auction. | 0:18:16 | 0:18:20 | |
Good looking semi-detached house. Needs small improvement. Good value. | 0:18:23 | 0:18:28 | |
Bid me at 150. Got to be worth that. | 0:18:28 | 0:18:30 | |
I should think so, too. 150 at the back. | 0:18:30 | 0:18:34 | |
152. And four. And six. | 0:18:34 | 0:18:37 | |
156, sitting down. 158? 160. Knows its value. 160. | 0:18:37 | 0:18:42 | |
At £160,000. 162, in a fresh place. | 0:18:42 | 0:18:46 | |
164? It's against you. 165. And eight? | 0:18:46 | 0:18:50 | |
168 I'm looking for. 168 I have. | 0:18:50 | 0:18:53 | |
And 70? 170. | 0:18:53 | 0:18:55 | |
And two? 172. And five? | 0:18:55 | 0:18:57 | |
175. And eight? | 0:18:57 | 0:19:00 | |
178? 178. And 80, if you like? | 0:19:00 | 0:19:03 | |
At £178,000 I've got. | 0:19:03 | 0:19:07 | |
180 I'm looking for. Are we all done then, at 178? | 0:19:07 | 0:19:11 | |
If you're sure you're all done. | 0:19:11 | 0:19:13 | |
It's yours, sir, for 178,000. | 0:19:13 | 0:19:16 | |
And your card number is 8481. | 0:19:16 | 0:19:21 | |
'The successful bid of £178,000 was placed by husband and wife | 0:19:23 | 0:19:28 | |
'David and Stephanie.' | 0:19:28 | 0:19:31 | |
Guys, congratulations. | 0:19:31 | 0:19:33 | |
You must be so pleased. Did you view this property prior to the auction? | 0:19:33 | 0:19:39 | |
No. We didn't get the chance to have a viewing. | 0:19:39 | 0:19:43 | |
We made a lot of assumptions from the catalogue. | 0:19:43 | 0:19:47 | |
We read it in detail and had a good look at the legal stuff. | 0:19:47 | 0:19:52 | |
So we knew that it was OK. | 0:19:52 | 0:19:55 | |
It was remortgaged two years ago so it should be structurally sound. | 0:19:55 | 0:19:59 | |
'That wasn't their only stroke of luck. | 0:19:59 | 0:20:02 | |
'The photo in the catalogue was an old one | 0:20:02 | 0:20:05 | |
'and there had since been unexpected improvements.' | 0:20:05 | 0:20:10 | |
Pictures can be deceiving. | 0:20:10 | 0:20:12 | |
They can, but what we got was better than what's in the catalogue. | 0:20:12 | 0:20:17 | |
Exactly! And usually it's the other way round! You guys got lucky! | 0:20:17 | 0:20:22 | |
The picture in the catalogue isn't the front of the house today. | 0:20:22 | 0:20:27 | |
No. A new front door, double glazing and it's been painted internally. | 0:20:27 | 0:20:32 | |
How did you feel when you opened the front door and walked inside for the first time? | 0:20:32 | 0:20:38 | |
It smelled of fresh gloss paint and looked fairly straightforward. | 0:20:38 | 0:20:43 | |
New kitchen, new bathroom, no problem at all. | 0:20:43 | 0:20:47 | |
'David was made redundant from his job in communications nine years ago | 0:20:47 | 0:20:51 | |
'and the couple have made their living renovating properties since.' | 0:20:51 | 0:20:55 | |
-Did you feel happy that you had bought a good solid house? -Yeah. | 0:20:55 | 0:21:01 | |
We were really pleased. Everything stacked up. | 0:21:01 | 0:21:04 | |
There's a nice little profit there if we want to take it. | 0:21:04 | 0:21:08 | |
'Helping them with everything from legal advice to demolition | 0:21:08 | 0:21:14 | |
'is their old friend, Janet.' | 0:21:14 | 0:21:16 | |
She's required for everything. | 0:21:16 | 0:21:18 | |
-Just to make sure... -Particularly sledgehammering down that wall! | 0:21:18 | 0:21:23 | |
-Will Janet be involved in knocking walls down? -She's in charge. | 0:21:23 | 0:21:27 | |
She will be taking this wall down with her sledgehammer. | 0:21:27 | 0:21:32 | |
'I need to meet this modern-day wonder woman with legal knowledge | 0:21:32 | 0:21:36 | |
'and, it seems, strength to take walls down with her bare hands.' | 0:21:36 | 0:21:41 | |
-So, Janet. -Hello. -What is all this about you and a sledgehammer? | 0:21:41 | 0:21:46 | |
I'm quite used to wielding it. I work in an office five days a week. | 0:21:46 | 0:21:52 | |
I get so frustrated that I take my frustration out on the wall. | 0:21:52 | 0:21:56 | |
-But seriously, your friends are really leaning on you. -Yeah. | 0:21:56 | 0:22:01 | |
-For the whole... -They have done throughout the whole process. | 0:22:01 | 0:22:06 | |
I helped with the legal pack, giving them ideas, | 0:22:06 | 0:22:10 | |
giving them pointers for the way to go. | 0:22:10 | 0:22:14 | |
We've been friends for 30, 40 years. We trust each other. | 0:22:14 | 0:22:18 | |
We know how we work. | 0:22:18 | 0:22:20 | |
-Have you ever knocked down a wall with a sledgehammer? -Yes. | 0:22:20 | 0:22:24 | |
-No. Come on! -Honestly. | 0:22:24 | 0:22:26 | |
How long is it going to take you to get that wall down? | 0:22:26 | 0:22:31 | |
The last time, it took me four hours. | 0:22:31 | 0:22:34 | |
A builder said it would take him two days, and gave us a weekend to do it in. I did it in four hours. | 0:22:34 | 0:22:41 | |
-Janet! Put it there, lady! -Thank you. | 0:22:41 | 0:22:44 | |
# I want to be | 0:22:44 | 0:22:46 | |
# Your sledgehammer... # | 0:22:48 | 0:22:50 | |
'The demolition's sorted. What else are David and Stephanie planning?' | 0:22:50 | 0:22:55 | |
Bathroom. Kitchen. | 0:22:55 | 0:22:58 | |
Conservatory out the back. | 0:22:58 | 0:23:00 | |
Put double doors between the two existing rooms. | 0:23:00 | 0:23:04 | |
Re-do all the electrics, new heating system, new plumbing, hot water. | 0:23:04 | 0:23:09 | |
And just spruce it up a bit. | 0:23:09 | 0:23:13 | |
-David, how much money do you think you need to spend? -About 20,000. | 0:23:13 | 0:23:18 | |
-£20,000? -Yes. Kitchens, bathrooms, surprisingly expensive. | 0:23:18 | 0:23:22 | |
Then there's the other work, the conservatory. | 0:23:22 | 0:23:26 | |
We think 20,000. It wouldn't be unreasonable to spend over 30,000. | 0:23:26 | 0:23:31 | |
If we were staying longer, then we would be looking to spend that sort of figure. | 0:23:31 | 0:23:37 | |
-You really want to have it looking fantastic? -It's got to look good. | 0:23:37 | 0:23:42 | |
David and Stephanie have got an ideal auction property. | 0:23:42 | 0:23:46 | |
There's not a lot to do, so I'm surprised at that £20,000 budget. | 0:23:46 | 0:23:52 | |
And Janet will be in charge of the demolition! Hard hats at the ready! | 0:23:52 | 0:23:56 | |
Join me later in the programme and find out what happens. | 0:23:56 | 0:24:01 | |
'Coming up, I'm not seeing straight at this Victorian mid-terrace.' | 0:24:02 | 0:24:08 | |
The door frame looks a bit wonky. | 0:24:08 | 0:24:11 | |
'We return to this London semi, where there's been fire damage.' | 0:24:11 | 0:24:17 | |
I said, "Have I lost my eyebrows?" They said, "No. You've lost your hair." | 0:24:17 | 0:24:23 | |
'First, how did novice Tony get on with that Cheshire bungalow?' | 0:24:24 | 0:24:29 | |
14, 15-hour days have been typical. | 0:24:29 | 0:24:32 | |
'Earlier, we were in the historic town of Nantwich in Cheshire, | 0:24:37 | 0:24:42 | |
'where Tony bought this bungalow at auction for £141,000. | 0:24:42 | 0:24:47 | |
'Entrepreneur and dance teacher, | 0:24:47 | 0:24:49 | |
'Tony decided to have a go at property developing, and is looking to the future.' | 0:24:49 | 0:24:55 | |
It's basically part of a 20-year plan. | 0:24:55 | 0:24:59 | |
I'm buying a number of properties. | 0:24:59 | 0:25:02 | |
'This is his second project and, three months later, it looks like he's been busy. | 0:25:03 | 0:25:10 | |
'The access has been opened up and a gravel driveway laid. | 0:25:10 | 0:25:14 | |
'The roof has been replaced and there's double glazing throughout. | 0:25:14 | 0:25:19 | |
'Those two spacious bedrooms have been replastered and painted | 0:25:22 | 0:25:27 | |
'and that parquet flooring has come up a treat.' | 0:25:27 | 0:25:31 | |
My beautiful parquet floor! | 0:25:35 | 0:25:37 | |
It's been labour of love. It was sanded way to early in the project. | 0:25:37 | 0:25:43 | |
Trying to keep the dirt off it has been difficult, to say the least. | 0:25:43 | 0:25:49 | |
I think the result is beautiful. You wouldn't get it in a new house. | 0:25:49 | 0:25:54 | |
'You certainly wouldn't. | 0:25:54 | 0:25:56 | |
'Restoring original features can be costly | 0:25:56 | 0:26:00 | |
'but will add significant value to an older property. | 0:26:00 | 0:26:05 | |
'In the sitting room, Tony has extended into the back garden | 0:26:05 | 0:26:09 | |
'to create a huge L-shaped area | 0:26:09 | 0:26:12 | |
'with new doors out onto the patio. | 0:26:12 | 0:26:16 | |
'The bathroom has been elongated by moving a wall, | 0:26:16 | 0:26:21 | |
'and a high-spec suite installed.' | 0:26:21 | 0:26:24 | |
Ah! The bathroom! I needed help with this. | 0:26:24 | 0:26:27 | |
So I called my dad. My dad has done an amazing job here. | 0:26:27 | 0:26:31 | |
He's in his early 70s, not that I should say that. | 0:26:31 | 0:26:35 | |
He's been on his hands and knees and done a fantastic job. | 0:26:35 | 0:26:39 | |
'Hasn't he just? | 0:26:39 | 0:26:41 | |
'Tony's dad, Harry, is a retired company director, | 0:26:41 | 0:26:46 | |
'but clearly an expert DIY-er, too. | 0:26:46 | 0:26:48 | |
'Finally, that prehistoric kitchen has been transformed | 0:26:48 | 0:26:52 | |
'with white units and modern appliances.' | 0:26:52 | 0:26:56 | |
This is the site of the kitchen. We've gone with contemporary units. | 0:26:59 | 0:27:05 | |
High-gloss units. It's a fully integrated kitchen. | 0:27:05 | 0:27:09 | |
With the downlighters to give it that contemporary feel. | 0:27:09 | 0:27:13 | |
'There's a beautiful blend of the traditional and modern here. | 0:27:13 | 0:27:18 | |
'Tony had the original internal doors dipped and stripped | 0:27:18 | 0:27:22 | |
'and finished with new hardware - and don't they look stunning? | 0:27:22 | 0:27:27 | |
'My slight worry is that Tony spent too much on luxury fittings | 0:27:29 | 0:27:34 | |
'for what he intended to be a rental house. | 0:27:34 | 0:27:37 | |
'I wonder if he got a bit carried away.' | 0:27:37 | 0:27:41 | |
The property was very much designed to be a rental property. | 0:27:41 | 0:27:45 | |
Within two or three weeks, it was clear that it would make a beautiful home. | 0:27:45 | 0:27:51 | |
Rather than putting fencing around the property, for instance, | 0:27:51 | 0:27:56 | |
we've laid 85 metres of beech hedging. | 0:27:56 | 0:27:59 | |
The kitchen has been increased, the specification. | 0:27:59 | 0:28:03 | |
Overall, the light fittings and other things have been increased | 0:28:03 | 0:28:08 | |
so that it appeals to someone who might want to buy the property. | 0:28:08 | 0:28:13 | |
It's also functional, if I do decide to rent it. | 0:28:13 | 0:28:16 | |
'He may have fallen into the classic trap | 0:28:18 | 0:28:22 | |
'of doing up a place to meet his own standards. | 0:28:22 | 0:28:26 | |
'While beautiful, that may be excessive for the rental market. | 0:28:26 | 0:28:31 | |
'Tony might have to shell out again if he sells the house later. | 0:28:31 | 0:28:35 | |
'But he saved a packet on labour by doing much of the work himself.' | 0:28:35 | 0:28:40 | |
I spent so much time at the property. | 0:28:40 | 0:28:43 | |
14, 15-hour days have been typical. | 0:28:43 | 0:28:47 | |
At least six days a week. | 0:28:47 | 0:28:49 | |
Sometimes, I've gone for two weeks working continuously through. | 0:28:49 | 0:28:53 | |
It's not for the faint-hearted, buying property. | 0:29:00 | 0:29:04 | |
I don't think people appreciate how much it takes over your life. | 0:29:04 | 0:29:09 | |
# You've got to work hard You've got to work hard... # | 0:29:09 | 0:29:12 | |
'But the proof is in the pudding and this is a feast for the eyes. | 0:29:14 | 0:29:20 | |
'Tony only went over his schedule of two months by a few weeks, | 0:29:20 | 0:29:25 | |
'but I wonder how he did with that all-important budget.' | 0:29:25 | 0:29:29 | |
My original budget was 41,000. | 0:29:30 | 0:29:33 | |
It was a fairly loose budget but I'd anticipated about that mark. | 0:29:33 | 0:29:38 | |
The budget HAS been increased and deliberately so. | 0:29:38 | 0:29:42 | |
There haven't been any things that have happened | 0:29:42 | 0:29:46 | |
that meant I had to increase the budget unnecessarily. | 0:29:46 | 0:29:49 | |
The budget's increased because we increased the specification. | 0:29:49 | 0:29:54 | |
I would estimate now that the budget is going to be about £47,000. | 0:29:54 | 0:29:58 | |
'That's more than a 10% increase in his original budget. | 0:29:58 | 0:30:02 | |
'The total expense, including the purchase price, is £188,000 | 0:30:02 | 0:30:07 | |
'plus the usual fees. | 0:30:07 | 0:30:09 | |
'Let's hope it makes good financial sense in the long run. | 0:30:09 | 0:30:13 | |
'We invited two local experts to tell us what they thought.' | 0:30:13 | 0:30:18 | |
First impressions, returning to the property, | 0:30:18 | 0:30:21 | |
he's done a fantastic job with the extension | 0:30:21 | 0:30:25 | |
and quality of the fitments. | 0:30:25 | 0:30:27 | |
It's well-modernised. Good quality kitchen and bathroom. | 0:30:27 | 0:30:31 | |
I love those wood block floors. He's done a really good job. | 0:30:31 | 0:30:35 | |
For rental, I would put it on in the region of £775 per calendar month. | 0:30:35 | 0:30:40 | |
If I was to offer this property to rent, I would be asking between £750 and £800 per calendar month. | 0:30:40 | 0:30:48 | |
The rental is about spot-on, to be fair. | 0:30:48 | 0:30:51 | |
We're going to chance our arm and try 825 but, realistically, | 0:30:51 | 0:30:56 | |
I think 800 would be a good rate for the property. | 0:30:56 | 0:30:59 | |
If I was to market it for resale today, I would look to market it in the region of £275,000 to £285,000. | 0:30:59 | 0:31:07 | |
I would market the property at £225,000. | 0:31:07 | 0:31:11 | |
My target had been 260, but since I've been working on the property and increased the specification | 0:31:11 | 0:31:17 | |
I would estimate to get 280 to 290. | 0:31:17 | 0:31:20 | |
'If he gets around the 290-grand mark - | 0:31:20 | 0:31:24 | |
'and Tony's had two valuations done independently that suggest this - | 0:31:24 | 0:31:30 | |
'that could make him a potential profit of over £100,000. | 0:31:30 | 0:31:34 | |
'Not bad for a first go. | 0:31:34 | 0:31:36 | |
'Will he do it again?' | 0:31:36 | 0:31:39 | |
Absolutely want to do it again. I start on Monday. | 0:31:39 | 0:31:42 | |
This is my full-time job. | 0:31:42 | 0:31:44 | |
I'm looking forward to many projects in the future. | 0:31:44 | 0:31:48 | |
'Since filming, Tony decided to move into the bungalow | 0:31:48 | 0:31:52 | |
'and is doing his old house up to rent out.' | 0:31:52 | 0:31:55 | |
'This is Derby in the East Midlands. | 0:32:02 | 0:32:05 | |
'A hub of the Industrial Revolution, | 0:32:05 | 0:32:08 | |
'the city enjoyed tremendous prosperity during Victorian times. | 0:32:08 | 0:32:14 | |
'One lasting legacy from that boom period is in Derby's housing stock, | 0:32:14 | 0:32:20 | |
'namely its streets of Victorian terraces.' | 0:32:20 | 0:32:24 | |
This is a fairly traditional street of terraced houses. | 0:32:26 | 0:32:29 | |
It was - before they did a fantastic job of making it family friendly. | 0:32:29 | 0:32:35 | |
We've got traffic calming, a park over there. | 0:32:35 | 0:32:38 | |
A different way to park the cars. A great start. | 0:32:38 | 0:32:42 | |
The property is this one. It had a guide price of £58,000. | 0:32:42 | 0:32:46 | |
A three-bedroom mid-terrace. Let's take a look. | 0:32:46 | 0:32:50 | |
Probably not too many surprises. Well, there's a pleasant one! | 0:32:50 | 0:32:54 | |
It doesn't smell damp or look to be in too bad a condition. | 0:32:54 | 0:32:59 | |
Straight in off the street into your living room. Very traditional. | 0:32:59 | 0:33:04 | |
It's obviously dated. | 0:33:04 | 0:33:06 | |
Hasn't been wallpapered for a while. | 0:33:06 | 0:33:08 | |
You'd want to change this gas fire, | 0:33:08 | 0:33:11 | |
maybe open that into an open fire. | 0:33:11 | 0:33:14 | |
You know what? It's fine. | 0:33:15 | 0:33:18 | |
These glass doors are a hazard. That's probably not safety glass. | 0:33:21 | 0:33:26 | |
If you've got kids, they should go. | 0:33:26 | 0:33:28 | |
A rear sitting room. Fireplace could do with updating. | 0:33:28 | 0:33:33 | |
Then a very traditional layout, through to the kitchen. | 0:33:33 | 0:33:37 | |
It's long and thin. | 0:33:37 | 0:33:39 | |
Again, fairly traditional, bathroom and toilet at the rear. | 0:33:39 | 0:33:44 | |
Your big debate is do you go to the expense of moving that to another part of the house? | 0:33:44 | 0:33:51 | |
Is it going to make much difference to what it's worth or what you get in rent? I don't think so. | 0:33:51 | 0:33:57 | |
So leave it there. | 0:33:57 | 0:33:59 | |
'I've noticed that there's no other form of heating | 0:34:00 | 0:34:04 | |
'than those old gas fires. | 0:34:04 | 0:34:06 | |
'Installing central heating would be top of my agenda. | 0:34:06 | 0:34:10 | |
'Apart from that, it's just cosmetics. | 0:34:10 | 0:34:14 | |
'A big positive is the back garden. | 0:34:16 | 0:34:19 | |
'It's small but attractive. It's obviously been well cared for.' | 0:34:19 | 0:34:24 | |
Upstairs, traditional layout continues. | 0:34:27 | 0:34:30 | |
One bedroom one side. One bedroom on the other. | 0:34:30 | 0:34:33 | |
I have to say, the door frame looks a bit wonky on both sides. | 0:34:33 | 0:34:37 | |
My guess is there has been some historic settlement. | 0:34:37 | 0:34:42 | |
You might want that checked out. | 0:34:42 | 0:34:44 | |
The guess is that it is something in the past. | 0:34:44 | 0:34:47 | |
What concerns me more is how the heck you call that a third bedroom! | 0:34:47 | 0:34:52 | |
It's microscopic! | 0:34:52 | 0:34:54 | |
Would you move the bathroom into this and create a corridor? | 0:34:54 | 0:34:58 | |
I don't think you would. It IS a bedroom. | 0:34:58 | 0:35:02 | |
It's not ideal but you wouldn't necessarily want to lose it. | 0:35:02 | 0:35:06 | |
I'd keep it as something like a nursery. | 0:35:06 | 0:35:10 | |
'What can the auctioneer who sold the property tell us about it?' | 0:35:10 | 0:35:15 | |
We're in a suburb of Derby called Normanton, | 0:35:15 | 0:35:19 | |
which is largely terraced housing like this with some later houses. | 0:35:19 | 0:35:23 | |
Derby City Council did an environmental improvement scheme. | 0:35:23 | 0:35:28 | |
They've tried to cut out a lot of on-road parking, | 0:35:28 | 0:35:34 | |
make the environment better, put in little open spaces and called it the Home Zone. | 0:35:34 | 0:35:40 | |
'Derby Council didn't only improve the surroundings.' | 0:35:43 | 0:35:47 | |
It's a property which has been reasonably well maintained. | 0:35:47 | 0:35:52 | |
Before the council did the Home Zone environmental scheme, | 0:35:52 | 0:35:56 | |
they did a group repair scheme. | 0:35:56 | 0:35:59 | |
All these houses got re-roofed, | 0:35:59 | 0:36:01 | |
new double-glazed windows, new downpipes and gutters. | 0:36:01 | 0:36:06 | |
A lot of that has been achieved. | 0:36:06 | 0:36:09 | |
'It sounds promising, but what improvements could be made?' | 0:36:09 | 0:36:13 | |
To keep it as a three-bedroom house, | 0:36:13 | 0:36:15 | |
you've got to passage out the back bedroom, | 0:36:15 | 0:36:18 | |
so you've got access to your third bedroom, | 0:36:18 | 0:36:22 | |
even though it's a small single. | 0:36:22 | 0:36:24 | |
'Would this make a solid rental investment?' | 0:36:24 | 0:36:27 | |
There's a good rental demand here. | 0:36:27 | 0:36:30 | |
These properties, because of what they are, will never fetch huge rental values. | 0:36:30 | 0:36:36 | |
This would rent out at about £375 to £400 a calendar month. | 0:36:36 | 0:36:40 | |
'What about a sale value, once renovated?' | 0:36:40 | 0:36:45 | |
Any terraced house in this locality, two bedrooms, three bedrooms, have a ceiling value of £85,000. | 0:36:45 | 0:36:52 | |
With money spent on it, to make a nice modern job out of it, | 0:36:52 | 0:36:58 | |
I would guess its value is probably about 80,000. | 0:36:58 | 0:37:02 | |
So, a solid little property that would rent out any day of the week, | 0:37:03 | 0:37:08 | |
and, with the work they've done, a nice place to live. | 0:37:08 | 0:37:12 | |
Who went for it when it went under the hammer? | 0:37:12 | 0:37:15 | |
Who's got 58 for a three-bedroom terrace? | 0:37:18 | 0:37:21 | |
55? Don't mind where we start. | 0:37:21 | 0:37:23 | |
55? 54? £54,000. Thank you. 55 is bid here. | 0:37:23 | 0:37:28 | |
60,000. 500. | 0:37:28 | 0:37:32 | |
61 is bid. 500. | 0:37:32 | 0:37:35 | |
62. 62,500. | 0:37:35 | 0:37:38 | |
63? 63,000. | 0:37:38 | 0:37:40 | |
64. 64,000. I've taken a bid at the back of the room. | 0:37:40 | 0:37:44 | |
64,500. 65,000. | 0:37:44 | 0:37:47 | |
65,500. 66. | 0:37:47 | 0:37:50 | |
500. 67? | 0:37:50 | 0:37:53 | |
At 66,500. | 0:37:53 | 0:37:56 | |
Going for the first time. Second time. | 0:37:56 | 0:37:59 | |
Third time... Yours, sir. | 0:37:59 | 0:38:01 | |
66,500. Thank you.. | 0:38:01 | 0:38:03 | |
'The final bid of £66,500 | 0:38:03 | 0:38:07 | |
'came from Bobby and his business partner, Dean. | 0:38:07 | 0:38:10 | |
'Regular viewers may recognise restaurateur and property developer Bobby.' | 0:38:10 | 0:38:16 | |
# Welcome home... # | 0:38:16 | 0:38:21 | |
'Last time we met him, he'd just finished restoring a Grade II listed | 0:38:21 | 0:38:26 | |
'Elizabethan manor house he bought at auction. | 0:38:26 | 0:38:29 | |
'Why was he bidding for a two-up, two-down terrace in Derby? | 0:38:29 | 0:38:34 | |
'I met him back at his new purchase to find out.' | 0:38:34 | 0:38:38 | |
# You've been gone too long... # | 0:38:38 | 0:38:41 | |
-Bobby, good to see you again. -Yes. | 0:38:43 | 0:38:47 | |
-How have you been? -Fine. Good, thank you. | 0:38:47 | 0:38:50 | |
-How's Wakelin Hall? -Doing well. Still standing. -Beautiful property. -Yes, it is. | 0:38:50 | 0:38:56 | |
We've come down a peg. It's not quite Elizabethan. | 0:38:56 | 0:39:00 | |
No. No. Hm. | 0:39:00 | 0:39:03 | |
-But it's good. -It is. -It's a good buy. | 0:39:03 | 0:39:06 | |
Tell me how come you've ended up buying this. | 0:39:06 | 0:39:09 | |
-The property's purchased by Dean. -Your business partner? | 0:39:09 | 0:39:14 | |
He's my friend and he's purchased the property... | 0:39:14 | 0:39:18 | |
I've sort of gone along to the auction with him... | 0:39:18 | 0:39:22 | |
I'm his inspiration and guidance in this project. | 0:39:22 | 0:39:26 | |
I'm also his speaker. He's lost his voice. He's croaking away. | 0:39:26 | 0:39:30 | |
What was it that made you think it was a good one for him? | 0:39:30 | 0:39:34 | |
The property hasn't got a lot that needs doing to it, just the decor. | 0:39:34 | 0:39:39 | |
It hasn't got central heating, so that'll need to be addressed. | 0:39:39 | 0:39:43 | |
That's it. Nothing too taxing. | 0:39:43 | 0:39:46 | |
'This little terrace isn't really going to be Bobby's project at all. | 0:39:46 | 0:39:51 | |
'His friend Dean wanted to learn about property developing | 0:39:51 | 0:39:55 | |
'and what better way to do it than start with something small? | 0:39:55 | 0:39:59 | |
'All it needs is a central heating system, then it's just the decor. | 0:39:59 | 0:40:04 | |
'Dean should manage that. | 0:40:04 | 0:40:06 | |
'My instincts are that Bobby may find it hard to take a back seat.' | 0:40:06 | 0:40:11 | |
How much budget has he put aside to sort out what needs to be sorted? | 0:40:11 | 0:40:17 | |
Hm. I'd say, probably about... 4,000 to 5,000. | 0:40:17 | 0:40:21 | |
Top end, 4,000 to 5,000. | 0:40:21 | 0:40:23 | |
-Are you going to be involved in any of the hands-on work? -No. | 0:40:23 | 0:40:28 | |
Is Dean? | 0:40:28 | 0:40:30 | |
Probably not. MARTIN LAUGHS | 0:40:30 | 0:40:33 | |
Hands-off property developing? | 0:40:33 | 0:40:35 | |
It's getting it done and getting some more properties. | 0:40:35 | 0:40:40 | |
# Relax, take it easy | 0:40:40 | 0:40:45 | |
# For there is nothing that we can do... # | 0:40:45 | 0:40:49 | |
What about timescales? How quickly to get it sorted? | 0:40:49 | 0:40:52 | |
-Three to four weeks. -Right. So a team of people coming in? | 0:40:52 | 0:40:57 | |
Get it ready. Get it rented out. | 0:40:57 | 0:40:59 | |
How are you going to manage to not interfere? | 0:40:59 | 0:41:02 | |
I think I'll get asked to do certain parts of the job. | 0:41:02 | 0:41:07 | |
So...I won't NEED to interfere! | 0:41:07 | 0:41:11 | |
-Your help will be welcome throughout? -Yes. | 0:41:11 | 0:41:14 | |
If you see him making mistakes, are you going to say, "Don't do that"? | 0:41:14 | 0:41:19 | |
Anything drastic, yes. | 0:41:19 | 0:41:21 | |
I'm a bit of a Scrooge. You may not think, in terms of the last project, how much money was spent. | 0:41:21 | 0:41:28 | |
But I don't think a lot should be spent on this particular project. | 0:41:28 | 0:41:32 | |
So if he has any ideas of spending a certain amount on decorating, | 0:41:32 | 0:41:37 | |
and it's a lot, then I will "step in". | 0:41:37 | 0:41:40 | |
-Well, he's very lucky to have you as his mentor. -Yes. | 0:41:40 | 0:41:45 | |
I hope so. | 0:41:45 | 0:41:47 | |
Congratulations. Look forward to seeing you again perhaps. | 0:41:47 | 0:41:51 | |
-Yes. -On a project somewhere between an Elizabethan manor house and a terrace. -Yeah. Hopefully. | 0:41:51 | 0:41:58 | |
Bobby picked a good first project for his business partner Dean. | 0:41:58 | 0:42:03 | |
Nothing structural to sort out, just a bit of cosmetic work. | 0:42:03 | 0:42:07 | |
How will they get on? Will Dean like being a property developer? Find out later in the show. | 0:42:07 | 0:42:14 | |
Time can be a healer. It can also be the enemy when you're up against a deadline. | 0:42:17 | 0:42:22 | |
-What has happened to those properties? -Let's find out. | 0:42:22 | 0:42:26 | |
'We're back at this 1930s semi in Plumstead, southeast London. | 0:42:31 | 0:42:35 | |
'It was bought at auction by David and Stephanie for £178,000. | 0:42:35 | 0:42:40 | |
'The couple planned to renovate the house to sell on. | 0:42:40 | 0:42:45 | |
'David felt pretty confident.' | 0:42:45 | 0:42:48 | |
We were really pleased. | 0:42:48 | 0:42:52 | |
Everything stacked up and there's a nice little profit if we want to take it. | 0:42:52 | 0:42:58 | |
'So, seven months later, | 0:42:59 | 0:43:01 | |
'how DID things stack up? | 0:43:01 | 0:43:03 | |
'A fresh coat of paint and a tidy-up of that hedge | 0:43:07 | 0:43:11 | |
'has made the house much more attractive. | 0:43:11 | 0:43:14 | |
'Inside, a lick of paint, new carpets and a fireplace | 0:43:14 | 0:43:19 | |
'bring the living space up to date. | 0:43:19 | 0:43:21 | |
'They decided against the neutral colours | 0:43:21 | 0:43:25 | |
'usually chosen when doing a property up for the market, | 0:43:25 | 0:43:28 | |
'and went for a bold contemporary feature wall and lighting instead. | 0:43:28 | 0:43:34 | |
'The wisest move was taking down the wall | 0:43:34 | 0:43:38 | |
'between the galley kitchen and the dining area. | 0:43:38 | 0:43:41 | |
'This created a large open kitchen living area | 0:43:41 | 0:43:45 | |
'which flows all the way from the front of the house to the back. | 0:43:45 | 0:43:50 | |
'A new kitchen maximises the space. | 0:43:50 | 0:43:53 | |
'There are new units, surfaces and appliances.' | 0:43:53 | 0:43:59 | |
This was the original kitchen, from that wall to approximately here. | 0:43:59 | 0:44:04 | |
There was a doorway from the hallway. | 0:44:04 | 0:44:07 | |
The door to the garden there meant that the kitchen was five foot wide. | 0:44:07 | 0:44:13 | |
It was totally impractical. There was no room to do anything. | 0:44:13 | 0:44:18 | |
The wall here came down and then we came through | 0:44:18 | 0:44:22 | |
and that made this great big space here. | 0:44:22 | 0:44:26 | |
We've moved the main kitchen here, | 0:44:26 | 0:44:29 | |
which makes this a big through-space. | 0:44:29 | 0:44:34 | |
'David and Stephanie's friend Janet did most of the heavy work.' | 0:44:34 | 0:44:39 | |
One of the first tasks she did was to sledgehammer the wall down. | 0:44:42 | 0:44:47 | |
David was the other side of the wall to where I was. | 0:44:47 | 0:44:51 | |
He told me to hit it after he'd hit it. | 0:44:51 | 0:44:54 | |
He hit it the first time and nothing happened. | 0:44:54 | 0:44:59 | |
I hit it and six bricks fell out. | 0:44:59 | 0:45:03 | |
His comment was, "I'll leave it to you." It took me two hours. | 0:45:03 | 0:45:09 | |
# If I had a hammer I'd hammer in the morning | 0:45:09 | 0:45:14 | |
# I'd hammer in the evening All over this land... # | 0:45:14 | 0:45:18 | |
'Upstairs, things haven't moved along quite so smoothly. | 0:45:18 | 0:45:24 | |
'The three bedrooms are being used as storage, while work continues downstairs. | 0:45:24 | 0:45:29 | |
'Outside, it's a different story. | 0:45:33 | 0:45:36 | |
'That big overgrown garden has been transformed. | 0:45:36 | 0:45:40 | |
'The south-facing aspect and large size makes it a fabulous spot to relax in . | 0:45:42 | 0:45:48 | |
'To get it to this state wasn't without its perils.' | 0:45:48 | 0:45:52 | |
This area here was almost waist-high in weeds. | 0:45:52 | 0:45:56 | |
As you go down the garden, there was a very large shrub | 0:45:56 | 0:46:01 | |
which almost blanked the back end of the garden. | 0:46:01 | 0:46:05 | |
Beyond there, there was a huge shed, full width of the garden, | 0:46:05 | 0:46:09 | |
semi-derelict and a complete mess. | 0:46:09 | 0:46:12 | |
It was an eyesore. David took one look and said, "Leave that to me." | 0:46:13 | 0:46:19 | |
Turned away and I said, "No." | 0:46:19 | 0:46:21 | |
And pulled it down in front of him! | 0:46:21 | 0:46:24 | |
Set fire to the doors that the shed comprised of. | 0:46:24 | 0:46:28 | |
Had a bit of an accident with that. | 0:46:28 | 0:46:31 | |
Put one of the doors on the fire. Stood a bit too close. | 0:46:31 | 0:46:36 | |
Turned round and said to Stephanie and David, who were both aghast, | 0:46:36 | 0:46:42 | |
"Have I lost my eyebrows?" They said, "No. You've lost your hair." | 0:46:42 | 0:46:47 | |
# O-o-oh, I'm on fire... # | 0:46:47 | 0:46:50 | |
'I guess Janet really suffers for her art, | 0:46:50 | 0:46:54 | |
'The burning question is, did David and Stephanie stay on schedule?' | 0:46:54 | 0:46:59 | |
We were hoping to be done in the region of four months. | 0:47:01 | 0:47:06 | |
We're now running at, um...six months. | 0:47:06 | 0:47:10 | |
Partly because we had a very hard winter. | 0:47:10 | 0:47:13 | |
That caused a lot of delays. | 0:47:13 | 0:47:16 | |
'What about their budget?' | 0:47:16 | 0:47:18 | |
The original budget was 20,000. | 0:47:18 | 0:47:21 | |
We are running at... | 0:47:21 | 0:47:24 | |
16 and a half at the moment. | 0:47:24 | 0:47:27 | |
We expect to spend another two to finish off. | 0:47:27 | 0:47:31 | |
We're going to come in a little below, | 0:47:31 | 0:47:34 | |
but we haven't found as many problems as we thought we might. | 0:47:34 | 0:47:38 | |
'Added to the projected £18,500 budget, | 0:47:38 | 0:47:42 | |
'the £178,000 purchase price brings their total spend to nearly 200,000. | 0:47:42 | 0:47:49 | |
'Have they spent their money wisely? | 0:47:49 | 0:47:51 | |
'We invited two local estate agents | 0:47:53 | 0:47:56 | |
'to give us their opinions.' | 0:47:56 | 0:47:59 | |
I'm impressed with the kitchen, particularly how they've arched open | 0:48:00 | 0:48:06 | |
the wall between the kitchen and the lounge, to give it a lot of light. | 0:48:06 | 0:48:11 | |
Much bigger. Much more space. It makes it much more saleable. | 0:48:11 | 0:48:17 | |
'How much could the couple expect if they rented the house out?' | 0:48:19 | 0:48:25 | |
In the current conditions, | 0:48:25 | 0:48:27 | |
this property would rent for about £975 per calendar month. | 0:48:27 | 0:48:32 | |
You'd get a lot of interest and I think it'd get rented quickly. | 0:48:32 | 0:48:36 | |
You could rent this property for £1,000 per calendar month. | 0:48:36 | 0:48:41 | |
About what I expected. | 0:48:41 | 0:48:43 | |
Yeah. The rental's a bit higher than I thought but, you know, hm... | 0:48:43 | 0:48:49 | |
'How much might it make if they sold it? | 0:48:49 | 0:48:52 | |
'Remember, their total spend was about £196,500.' | 0:48:52 | 0:48:59 | |
Reflecting the current market, the property would go on for £225,000 to £230,000. | 0:48:59 | 0:49:06 | |
You'd get a lot of interest from cash buyers, and I think it's a price we'd sell the property for. | 0:49:06 | 0:49:12 | |
With the work completed, I would value this property between £220,000 and £225,000. | 0:49:12 | 0:49:19 | |
Yes. What we were expecting. | 0:49:19 | 0:49:21 | |
Yeah. It's in the range. Yeah. | 0:49:21 | 0:49:24 | |
'That sounds like a potential profit of between 23,000 and 33,000, | 0:49:27 | 0:49:32 | |
'minus tax and fees. | 0:49:32 | 0:49:34 | |
'They'd need to finish upstairs to the same standard as downstairs. | 0:49:34 | 0:49:40 | |
'Between David and Stephanie, and the invaluable Janet, | 0:49:40 | 0:49:44 | |
'they look to have things under control. | 0:49:44 | 0:49:47 | |
'The secret of their great working relationship?' | 0:49:50 | 0:49:53 | |
-Oh, well. I do what I'm told. -THEY LAUGH | 0:49:53 | 0:49:57 | |
-You can't say that! -I just have! -Not with Janet, anyway. | 0:49:57 | 0:50:02 | |
'We're back at this three-bed mid-terrace in Derby. | 0:50:10 | 0:50:15 | |
'It had been snapped up for £66,500 by Dean, who bought it as a buy-to-let. | 0:50:15 | 0:50:22 | |
'It was his first property investment, | 0:50:22 | 0:50:26 | |
'so Dean decided to have it mentored by business partner Bobby, | 0:50:26 | 0:50:30 | |
'who has previous renovation experience and a tough business head.' | 0:50:30 | 0:50:36 | |
I don't think a lot of money should be spent on this particular project. | 0:50:36 | 0:50:41 | |
If he has ideas of spending a certain amount on decorating, and it's a lot, then I will "step in". | 0:50:41 | 0:50:48 | |
'Six months later, we joined Bobby to see how things have been going. | 0:50:52 | 0:50:57 | |
'Someone's moved in, by the looks of it. | 0:50:57 | 0:51:00 | |
'But apart from some new flooring, the rooms haven't changed much.' | 0:51:02 | 0:51:09 | |
We've done a small amount of work, the reason being tenants wanted to move in very quickly. | 0:51:09 | 0:51:15 | |
They didn't have anywhere to live. | 0:51:15 | 0:51:17 | |
They were living at a relative's house. | 0:51:17 | 0:51:21 | |
There was no need to spend any extra cash. | 0:51:21 | 0:51:25 | |
'It's great that they got tenants in so fast. | 0:51:25 | 0:51:29 | |
'This house was bought as a buy-to-let, after all. | 0:51:29 | 0:51:33 | |
'Despite appearances, Bobby did manage to get some jobs done in the few weeks before they moved in.' | 0:51:36 | 0:51:44 | |
OK, so we've plastered the walls. | 0:51:44 | 0:51:46 | |
The painting's not finished, as you can see. | 0:51:46 | 0:51:50 | |
New central heating system and new flooring. They're the three items. | 0:51:50 | 0:51:55 | |
'What about that tiny third bedroom? | 0:51:55 | 0:51:58 | |
'Are the tenants happy accessing it through the second bedroom?' | 0:51:58 | 0:52:02 | |
They were happy with the arrangement | 0:52:02 | 0:52:05 | |
for the bedrooms to be through one to the next. | 0:52:05 | 0:52:08 | |
So we left it. For now. | 0:52:08 | 0:52:11 | |
'With a minimum of fuss, Bobby has had the house rented out for six months, | 0:52:11 | 0:52:17 | |
'which means a steady income for Dean. | 0:52:17 | 0:52:20 | |
'Recently, the first tenants moved out, allowing more work to be done.' | 0:52:20 | 0:52:25 | |
We've got a new set of tenants in. | 0:52:26 | 0:52:29 | |
And we can now complete some of the work whilst these tenants are in, | 0:52:29 | 0:52:36 | |
because they're OK for us to carry on. | 0:52:36 | 0:52:39 | |
Somebody will come back and finish off bits of trim, | 0:52:39 | 0:52:43 | |
painting around the door frames, just remedial work. | 0:52:43 | 0:52:48 | |
If it means getting the rent in quickly rather than losing rent for another week or two, | 0:52:48 | 0:52:55 | |
it's better that way. | 0:52:55 | 0:52:57 | |
'I think Bobby's got the right idea. | 0:52:57 | 0:53:00 | |
'His focus is on having the property work for its keep. | 0:53:00 | 0:53:04 | |
'That means ensuring the house is occupied by tenants.' | 0:53:04 | 0:53:08 | |
My personal belief is, | 0:53:08 | 0:53:11 | |
if you're keeping this property a long time, as long as the fabric of the property is sound, | 0:53:11 | 0:53:17 | |
I don't think you need to spend much more. | 0:53:17 | 0:53:20 | |
If the tenants are happy, leave it at that. | 0:53:20 | 0:53:24 | |
If you're spending extra, you've got to justify it. | 0:53:24 | 0:53:27 | |
If you're going to market it and sell it, spend more. | 0:53:27 | 0:53:32 | |
If you're keeping it long term, you could spend thousands later. | 0:53:32 | 0:53:37 | |
'With such a frugal approach, did he allow Dean to go over his £4,000 to £5,000 budget?' | 0:53:37 | 0:53:45 | |
We spent 4,000 in total. The majority on central heating. | 0:53:45 | 0:53:49 | |
And around £1,000 for the flooring, painting these walls and replastering these two rooms. | 0:53:49 | 0:53:56 | |
A few hundred pounds need to be spent finishing off, but that's all. | 0:53:56 | 0:54:01 | |
'Adding the renovation budget of £4,000 to the £66,500 paid for the house, | 0:54:03 | 0:54:10 | |
'a total of £70,500 has been spent. | 0:54:10 | 0:54:14 | |
'It seems to have paid off, as it's an in-demand rental property | 0:54:14 | 0:54:18 | |
'that's working well for Bobby's friend Dean. | 0:54:18 | 0:54:22 | |
'We invited two property experts along to see what they thought | 0:54:22 | 0:54:27 | |
'of Bobby and Dean's approach.' | 0:54:27 | 0:54:29 | |
I have to say, not a lot has changed, has it, really? | 0:54:29 | 0:54:34 | |
Laminate flooring, a central heating system | 0:54:34 | 0:54:37 | |
and a quick wallop of paint. | 0:54:37 | 0:54:41 | |
I think, as a future improvement, you would passage out the bedroom. | 0:54:41 | 0:54:46 | |
It's a logical thing to do. It doesn't work well as it is. | 0:54:46 | 0:54:51 | |
It's a thing you'd do if you took it further. | 0:54:51 | 0:54:54 | |
If the owner's renting it out for a good return, and done minimal work, | 0:54:54 | 0:55:00 | |
great, leave it as it is. | 0:55:00 | 0:55:02 | |
'With a basic refurbishment, did they settle for a lower monthly rent?' | 0:55:05 | 0:55:11 | |
This sort of property in this location is easy to rent out. | 0:55:11 | 0:55:16 | |
In rental value, it's about £400 a calendar month. | 0:55:16 | 0:55:19 | |
A bit more, a little bit less, but it's about that sort of ballpark. | 0:55:19 | 0:55:24 | |
Judging on the properties around here, you could get £400 per calendar month. | 0:55:24 | 0:55:31 | |
We're getting 410. | 0:55:31 | 0:55:33 | |
It's £10 over, not under, so that's fine. | 0:55:33 | 0:55:36 | |
'It looks like Bobby's businesslike approach is paying dividends. | 0:55:38 | 0:55:43 | |
'How much could this house fetch, if put up for sale?' | 0:55:43 | 0:55:47 | |
If you offered the property as it is, there's a market for it, yes. | 0:55:47 | 0:55:52 | |
You could take it a bit further, improve the kitchen and bathroom. | 0:55:52 | 0:55:57 | |
You will add value, but you can't take it too much further | 0:55:57 | 0:56:01 | |
because there's a cap on the level of values of standard terrace houses in this location. | 0:56:01 | 0:56:08 | |
If this was on today's market, | 0:56:08 | 0:56:10 | |
you'd have an asking price of around £75,000, and expect to get fairly close to that. | 0:56:10 | 0:56:16 | |
I would put this property on the market at £69,950 and hope to get an offer fairly close. | 0:56:16 | 0:56:22 | |
Won't be tempted to sell, but I think, with the market the way it is, it's OK. | 0:56:22 | 0:56:28 | |
I think the 65 to 70 is slightly low for private treaty. | 0:56:28 | 0:56:33 | |
For auction, OK, it'll be somewhere close to that. | 0:56:33 | 0:56:37 | |
75 is still a realistic price. | 0:56:37 | 0:56:40 | |
'No matter. This place is a rent machine. | 0:56:40 | 0:56:44 | |
'Bobby and Dean approached the venture on business principles | 0:56:44 | 0:56:48 | |
'and are already reaping the rewards.' | 0:56:48 | 0:56:51 | |
We'll be back with more action from auctions around the country. | 0:56:54 | 0:56:59 | |
-Make sure you're watching Homes Under The Hammer. -Goodbye. | 0:56:59 | 0:57:03 | |
Subtitles by Red Bee Media Ltd | 0:57:24 | 0:57:27 |