0:00:02 > 0:00:06- Welcome to Homes Under The Hammer. - They say every house tells a story.
0:00:06 > 0:00:09- We've found that to be true. - There are always secrets to uncover
0:00:09 > 0:00:13and problems to find when you buy your home under the hammer.
0:00:38 > 0:00:44Auction properties are bought on a "buyer beware" basis. It's up to you to check them out before you buy.
0:00:44 > 0:00:47Or you could be in for some nasty surprises.
0:00:47 > 0:00:51Let's see if today's bidders got lucky with their purchases.
0:00:53 > 0:00:58'You're going to need more than a sweet tooth for this topsy-turvy Tavistock property.'
0:00:59 > 0:01:02Boiled sweet, anybody?
0:01:02 > 0:01:07'There are two bedrooms in this flat in Wembley and lots of spare space.'
0:01:07 > 0:01:12Come here. This is probably one of the biggest cupboards I've been in.
0:01:12 > 0:01:17'And this Swindon semi won't suit everyone and certain pets are banned.'
0:01:17 > 0:01:23So owners of boa constrictors, scorpions and pet whales need not apply.
0:01:24 > 0:01:27- 'All of these properties went to auction.'- 150 anywhere?
0:01:27 > 0:01:32'We'll find out who bought them and what they paid when they went under the hammer.'
0:01:35 > 0:01:39I'm in Tavistock on the edge of Dartmoor in Devon,
0:01:39 > 0:01:42famous for this viaduct which passes across the town.
0:01:42 > 0:01:46It once used to carry the trains from Plymouth to Tavistock.
0:01:46 > 0:01:51The big question is, will the property I'm here to see today be on track?
0:01:56 > 0:02:01Well, the trains may be gone, but the roads are still busy
0:02:01 > 0:02:05as Tavistock is a popular town for commuters working in Plymouth.
0:02:05 > 0:02:11It's also an attractive tourist destination as it's just to the west of Dartmoor National Park.
0:02:11 > 0:02:16Well, just a few minutes' walk out of the town centre is the property I'm here to see.
0:02:16 > 0:02:20And access is kind of unusual. It's across this sort of bridge thing.
0:02:20 > 0:02:26That's because the house itself is fairly unusual. 115,000 quid was the guide price.
0:02:26 > 0:02:30It's a three-storey semi-detached. Let's take a look inside.
0:02:33 > 0:02:36It's been built on a steep embankment,
0:02:36 > 0:02:41so access from the street is from the third floor at the front of the house.
0:02:41 > 0:02:46At ground level, there is access to the garden from the back.
0:02:46 > 0:02:50The building was probably built in the 1970s, so it isn't very old,
0:02:50 > 0:02:56but it's in a really run-down condition. It looks as though it's been lying empty for a long time.
0:02:56 > 0:03:00But a chance to buy any property in Tavistock is always enticing.
0:03:00 > 0:03:06What have we got? Well, one thing we haven't got is a banister! That's not a very good start.
0:03:06 > 0:03:09And the smell in here is pretty vile.
0:03:09 > 0:03:14Look at the state of the carpet too! Yeuch! Anyway, not to worry...
0:03:14 > 0:03:19The living room area there and then down this corridor area through to the kitchen
0:03:19 > 0:03:23which I'm sure will be absolutely pristine...
0:03:24 > 0:03:30No! Actually, it's really disgusting. I'm a bit nervous about opening anything.
0:03:30 > 0:03:33Let's open the drawer. Oh, look at that!
0:03:33 > 0:03:35Lovely(!)
0:03:35 > 0:03:40Right, OK, so clearly it's going to need a bit of work to sort this place out.
0:03:40 > 0:03:44You see it's very run-down, almost dilapidated.
0:03:44 > 0:03:49Still, let's try and see through all that and be positive. Oh, look!
0:03:51 > 0:03:53Boiled sweet, anybody?
0:03:55 > 0:03:58# We gotta get out of this place
0:03:58 > 0:04:02# If it's the last thing we ever do... #
0:04:02 > 0:04:05Eugh! The place is pretty dilapidated.
0:04:05 > 0:04:11It's grotty, musty-smelling and probably hasn't been lived in for who knows how many years,
0:04:11 > 0:04:14but this is what buying at auctions is all about.
0:04:14 > 0:04:20You have to put on your property goggles and look beyond that surface layer of dirt.
0:04:20 > 0:04:24There are definitely opportunities up here on the top floor.
0:04:24 > 0:04:30You can make more of the dining room and the living room at the front is also a good size.
0:04:30 > 0:04:33To check out the next floor, I'm heading down, not up.
0:04:33 > 0:04:36It's a bit of a topsy-turvy, upside-down house.
0:04:36 > 0:04:42You go down the stairs here, bedrooms on the middle floor, two main double ones,
0:04:42 > 0:04:48then a very small room, which could be sort of a bedroom. It's got this door out on to the garden.
0:04:48 > 0:04:51It's more like a study or whatever.
0:04:51 > 0:04:54Then a bathroom here which is good and then we continue down.
0:04:54 > 0:04:57# Upside down
0:04:57 > 0:05:00# Boy, you turn me inside out
0:05:00 > 0:05:02# And round and round... #
0:05:02 > 0:05:07So already we have a two to three-bedroomed family home, albeit inverted,
0:05:07 > 0:05:10with the bedrooms below the living accommodation.
0:05:10 > 0:05:13I'm starting to get used to it now.
0:05:13 > 0:05:18I can see there's great potential here, but the best is yet to come.
0:05:21 > 0:05:26Down to the bottom floor and there's almost a bit of a kitchenette thing going on here
0:05:26 > 0:05:30and my guess is this could almost have been a bedsit.
0:05:30 > 0:05:32Again, it is in a right old state,
0:05:32 > 0:05:37but the good news here is access out on to what looks like a reasonable garden.
0:05:40 > 0:05:44I reckon this ground floor is where the money's at.
0:05:44 > 0:05:47Refurbished as a modern, self-contained bedsit,
0:05:47 > 0:05:51accessed from the back garden, it could be a great rent machine.
0:05:51 > 0:05:57The garden is narrow, but long, and currently crowded out with dilapidated outbuildings.
0:05:57 > 0:06:02Once cleared, there would be some useful space which could accommodate a couple of parking spaces.
0:06:02 > 0:06:05All in all, some real flexibility.
0:06:05 > 0:06:09The auctioneer who sold it has come to give his thoughts on the place.
0:06:13 > 0:06:18The box itself is fairly sound because it's not very old in building terms.
0:06:18 > 0:06:21As well as fairly major decoration works,
0:06:21 > 0:06:24yeah, you are looking at checking the wiring,
0:06:24 > 0:06:27probably a new central heating system,
0:06:27 > 0:06:31definitely new kitchens, new bathrooms.
0:06:31 > 0:06:34It's almost like a second fix on a new house.
0:06:34 > 0:06:40You've got the basic structure, then you've got to fit it out. That's what you've got to do here.
0:06:40 > 0:06:46So, once all that work is done, I wonder how much rent this could generate?
0:06:46 > 0:06:50If the purchaser was an out-and-out residential lettings investor,
0:06:50 > 0:06:52to maximise the building,
0:06:52 > 0:06:57he'd be a bit daft not to look at the upper floors being a maisonette
0:06:57 > 0:07:00that he'd rent out for... There's three bedrooms.
0:07:01 > 0:07:04..perhaps £500 per calendar month?
0:07:04 > 0:07:10And then the ground floor, the garden floor has a little self-contained studio.
0:07:10 > 0:07:14He could probably get £300, £350 a calendar month for that as well.
0:07:14 > 0:07:17And as a single house?
0:07:17 > 0:07:20As a whole house, because it's so huge,
0:07:20 > 0:07:25you could be looking at about £650 per calendar month.
0:07:25 > 0:07:28What if the property was sold on after refurbishment,
0:07:28 > 0:07:31remembering that guide price of 115,000?
0:07:32 > 0:07:36Re-sale is quite interesting on this house
0:07:36 > 0:07:41because if you happen to find somebody who values the ground floor
0:07:41 > 0:07:44as an actual element of the property they want to buy,
0:07:44 > 0:07:49they'd probably pay as much as 185,000 or thereabouts.
0:07:50 > 0:07:57If the only marketplace was simply people who just wanted a bigger house than normal,
0:07:57 > 0:08:01they probably would be looking at about £175,000.
0:08:01 > 0:08:06Oh, well, whichever way you look at it, this house has problems.
0:08:06 > 0:08:10But for a brave investor, there could be tempting potential here.
0:08:11 > 0:08:15Well, it would be very easy to be put off by the state of this place,
0:08:15 > 0:08:20but you've got to see through that if you're a developer to what this place could become.
0:08:20 > 0:08:27I think it could make money. Let's see who fancied the opportunity when it went under the hammer.
0:08:30 > 0:08:3363... Just a really versatile property.
0:08:33 > 0:08:37I'm not going to go less than 100, so who'll say 100 for Lot 63?
0:08:37 > 0:08:40Thank you, sir. 100 we've got.
0:08:40 > 0:08:42102. 102.
0:08:42 > 0:08:44104. 104.
0:08:44 > 0:08:47106. 108.
0:08:47 > 0:08:49110. 112.
0:08:49 > 0:08:52114. 116.
0:08:53 > 0:08:55118.
0:08:55 > 0:08:58120. 121.
0:08:58 > 0:09:00121. 122.
0:09:00 > 0:09:04123 I've got. 125. 125.
0:09:04 > 0:09:05125.
0:09:05 > 0:09:09125. At 125 first time...
0:09:09 > 0:09:12That's still a hot property.
0:09:12 > 0:09:15At 125 second time. At 125...
0:09:15 > 0:09:18Oh, 126. 126, fresh face.
0:09:18 > 0:09:21126. 126...
0:09:21 > 0:09:23At 126. One bid only.
0:09:23 > 0:09:25He's in at 126.
0:09:25 > 0:09:29Looking left and right, but at 126, are you sure and done?
0:09:29 > 0:09:31Middle and sat has got it.
0:09:31 > 0:09:33At 126 and out, sir...
0:09:33 > 0:09:36Sir, yours, well done. Timely.
0:09:40 > 0:09:46'With a bid of 126,000, the new owner is local carpenter turned developer Michael
0:09:46 > 0:09:50'who has bought the house as a refurbishment project.
0:09:50 > 0:09:55'It's his first go at that, so I met up with him to find out what he has planned
0:09:55 > 0:09:57'for this quirky property.'
0:09:57 > 0:10:00- Michael, congratulations.- Thank you.
0:10:00 > 0:10:02Why did you choose this property?
0:10:02 > 0:10:08- It's quite a challenge.- It's a challenge, but there's no other property around here like this one.
0:10:08 > 0:10:14All right, it's a semi-detached, but other than that, there's nothing round here that's like it as such.
0:10:14 > 0:10:20- It's got its own character. - Why are you doing this? As a money-making venture?
0:10:20 > 0:10:25Predominantly, yes. Hopefully, I'll finish it and sell it on at the end of it.
0:10:25 > 0:10:31- But in time, gradually, hopefully build up a few more pounds, then we'll keep 'em and...- OK, fantastic.
0:10:31 > 0:10:35- Have you taken on anything like this before?- No, this is my first one.
0:10:35 > 0:10:39What kind of experience have you got in DIY?
0:10:39 > 0:10:43- I'm a carpenter and I've done that for the last 30 years.- Right.
0:10:43 > 0:10:49- I just want to work for myself now. - So you're going to be your own boss? - In a way, yeah.- Fabulous.
0:10:49 > 0:10:51'You've got to admire Michael.
0:10:51 > 0:10:56'For his very first development project, he's taken on a pretty big challenge.
0:10:56 > 0:11:02'A one-bed flat would be easier than this three-floor property, but nothing ventured, nothing gained.'
0:11:02 > 0:11:06So in terms of breaking down the work that's needed in here,
0:11:06 > 0:11:09how much of what's needed will you be able to do?
0:11:09 > 0:11:16I would say 90% of it myself, then obviously, I'll want plasterers in, electricians, plumbers.
0:11:16 > 0:11:19What sort of money have you got set aside for doing this?
0:11:19 > 0:11:2217,100 is what my figures worked out as,
0:11:22 > 0:11:26so allowing a bit of contingency, about 15% - £20,000.
0:11:26 > 0:11:29- 20,000?- Yeah. - And that's to do what?
0:11:29 > 0:11:31Basically, everything.
0:11:31 > 0:11:35Every piece of woodwork in the house, the doors, skirtings,
0:11:35 > 0:11:40re-plaster all the ceilings, the walls, new kitchens, two new bathrooms.
0:11:40 > 0:11:46Just about everything you could think of and on the outside of the property, a lot of landscaping.
0:11:46 > 0:11:48That could take three or four weeks.
0:11:48 > 0:11:52'There looks to be a lot of land at the back of the property
0:11:52 > 0:11:56'and there's also access from there for cars.
0:11:56 > 0:11:58'But first, it's all got to be cleared.
0:11:58 > 0:12:03'Back inside, has Michael given much thought to how he will tackle the project?'
0:12:03 > 0:12:08So any plans to change the layout, especially down on the ground floor?
0:12:08 > 0:12:13The ground floor has been let out as a bedsit over so many years or whatever,
0:12:13 > 0:12:18so that's going to be changed into a master bedroom with an en-suite as such.
0:12:18 > 0:12:22- Then the small third bedroom? - I wouldn't class it as a bedroom.
0:12:22 > 0:12:25It would be just a walk-through study area.
0:12:25 > 0:12:30'Well, with the property in such a shabby state,
0:12:30 > 0:12:33'the layout and room functions may all have to change.
0:12:33 > 0:12:39'I just hope Michael's £20,000 budget will cover what needs to be done here.'
0:12:39 > 0:12:44- Roughly how long do you think it's going to take? - I've set myself 12 weeks.- Wow!
0:12:44 > 0:12:47But I've allowed for 16.
0:12:47 > 0:12:49- Good luck with it all.- Thank you.
0:12:49 > 0:12:55- When does work start?- Keys tomorrow, supposed to be, so it'll be straight in, straight away.
0:12:55 > 0:12:59- Good. I look forward to seeing how you get on.- Thank you.
0:13:02 > 0:13:06Michael doesn't seem too fazed by the task ahead.
0:13:06 > 0:13:10I think most people, though, would be a little bit daunted.
0:13:10 > 0:13:15There is a lot to do to sort this place out, although he has got a reasonable budget.
0:13:15 > 0:13:19Find out how he gets on turning this place around later in the show.
0:13:24 > 0:13:30Just a 30-minute train journey from Central London takes me north-west of the capital
0:13:30 > 0:13:34to an area whose name gets every football fan's pulse racing.
0:13:34 > 0:13:39# It's coming home, it's coming Football's coming home... #
0:13:39 > 0:13:43When you say "Wembley", you hear "stadium".
0:13:43 > 0:13:49This big structure dominates the skyline and it's certainly what the area is famous for.
0:13:49 > 0:13:53But it also benefits the local community in a more practical sense
0:13:53 > 0:13:56with re-development of the local area taking place
0:13:56 > 0:14:02and vastly improved transport links now geared up to handle thousands of sports fans.
0:14:02 > 0:14:05Looks like Wembley could be a real crowd-pleaser.
0:14:05 > 0:14:09The iconic twin towers of the old stadium may have gone,
0:14:09 > 0:14:13but with the new dynamic arch, the area has lost none of its profile.
0:14:13 > 0:14:18With over 150 million being spent on transport improvements,
0:14:18 > 0:14:22there's no shortage of links in and out of Wembley.
0:14:22 > 0:14:27This in turn has seen a property boom with new developments being snapped up,
0:14:27 > 0:14:32so despite the economic downturn, this still looks like a blossoming market.
0:14:33 > 0:14:39Bearing in mind you could be in Oxford Circus in the heart of the West End in just 30 minutes,
0:14:39 > 0:14:45the guide price for this two-bedroomed flat doesn't sound too bad to me at £170,000.
0:14:45 > 0:14:52Now, the block itself is late '90s and not unattractive with its own off-street parking space.
0:14:52 > 0:14:57So all fine so far. Let's see if the inside makes quite such a good impression.
0:14:57 > 0:15:03- # Most high- Most high - Most high- Most high- Most high
0:15:03 > 0:15:06# Like an angel in the sky... #
0:15:06 > 0:15:10It might not be oozing character, but it's a decent-looking block.
0:15:10 > 0:15:16There are trees and hedges planted around, a children's play area just at the end of the building
0:15:16 > 0:15:22and a security door lock system. There may be no lifts, but it's only four storeys high
0:15:22 > 0:15:25and the two-bed flat I'm after is just on the second floor.
0:15:27 > 0:15:30Well, what a nice treat!
0:15:30 > 0:15:36I've got to say surprisingly light, spacious, really open.
0:15:36 > 0:15:42Look at the size of this hallway! A lovely, big kitchen. Could do with a bit of a refurb. What's in here?
0:15:43 > 0:15:45Actually, stay there. Come here.
0:15:45 > 0:15:49This is probably one of the biggest cupboards I've ever been in.
0:15:49 > 0:15:54You could turn this into a little bathroom. You would call this a room.
0:15:54 > 0:15:57Huge amount of wasted space in there. Another bedroom there.
0:15:57 > 0:16:02Really nice sized bathroom, but just needs a bit of love and attention.
0:16:02 > 0:16:08And a really spacious bedroom. It's got laminate throughout this flat. It's really good.
0:16:08 > 0:16:13It's spacious, much bigger than I'd expected. Can we see a view of Wembley Stadium?
0:16:13 > 0:16:19No, just a big block of flats. But this is surprisingly good. I really like it.
0:16:19 > 0:16:23What's a relief is that this isn't a pokey, two-bed flat
0:16:23 > 0:16:25with rooms crammed in everywhere.
0:16:25 > 0:16:31It's a generous size. There's a bathroom with a bath in it, not just a little shower room.
0:16:31 > 0:16:33There are two decent-sized bedrooms.
0:16:36 > 0:16:39Plus a well-proportioned kitchen.
0:16:40 > 0:16:44But I think, undoubtedly, best of all is the lounge
0:16:44 > 0:16:47with its welcome bonus of a balcony.
0:16:48 > 0:16:53So it's not much outside space, but it's somewhere to sit on a nice evening.
0:16:53 > 0:16:58The view is not exactly spectacular, but you're in a London suburb,
0:16:58 > 0:17:00so what do you expect?
0:17:00 > 0:17:05This balcony adds saleability and it's not to be sniffed at.
0:17:05 > 0:17:08But how should I view this flat?
0:17:08 > 0:17:12With great transport links, it could suit young professionals,
0:17:12 > 0:17:16but I think it also ticks the "buy to let" box.
0:17:16 > 0:17:19The flat may not be full of character features,
0:17:19 > 0:17:22but it's crying out to be added to an investor's portfolio.
0:17:22 > 0:17:28If you tidied the place up, you could get around £1,200 per month in rent.
0:17:28 > 0:17:31That seems like a lot of money. Actually, it is.
0:17:31 > 0:17:34If it was bought for the guide price, that is over an 8% yield
0:17:34 > 0:17:38and in today's climate, that is a return that is hard to turn down.
0:17:38 > 0:17:41One thing to be aware of, though,
0:17:41 > 0:17:46is a whopping £1,000 a year service charge.
0:17:46 > 0:17:50That's £90 a month you need to factor into the rental rate.
0:17:50 > 0:17:56Even so, I still think this flat has a lot going for it, but what does the local estate agent think?
0:17:56 > 0:17:58First impressions of the flat
0:17:58 > 0:18:03are that it needs a little bit of work doing to it. Nothing too major.
0:18:03 > 0:18:07All the rooms are in the right places, no rooms are off each other.
0:18:07 > 0:18:10It has two double bedrooms and a spacious lounge.
0:18:10 > 0:18:16It has a parking space with it and it's near all the shops, transport links and everything you could want.
0:18:16 > 0:18:21There are not many boxes it doesn't tick, perhaps apart from a garden space,
0:18:21 > 0:18:24but of course, it does have that balcony.
0:18:24 > 0:18:26Having a balcony is a useful bonus.
0:18:26 > 0:18:30It's not a great selling point because there's no view,
0:18:30 > 0:18:34but it's nice to have a bit of open space with a purpose-built flat.
0:18:34 > 0:18:38I already know you can get up to £1,200 per month in rent here,
0:18:38 > 0:18:43but could you turn this place, guided at 170,000, around quickly
0:18:43 > 0:18:46and make a profit on the re-sale market?
0:18:46 > 0:18:49If this flat was to come on the market for sale,
0:18:49 > 0:18:54I think currently it would be somewhere in the region of 175,000 to 180,000.
0:18:54 > 0:18:57If it was refurbished to a clean, modern standard,
0:18:57 > 0:19:01you would be looking in the region of 190,000 to 195,000.
0:19:01 > 0:19:04So there could be money to be made if it was sold,
0:19:04 > 0:19:09but to me, this has "rental" written all over it.
0:19:11 > 0:19:15Wembley's improving, has improved already, in fact,
0:19:15 > 0:19:19and property is all the more desirable because of it.
0:19:19 > 0:19:25This flat may not be a natural looker, but it could charm your bank balance and make you a pretty penny.
0:19:25 > 0:19:29Let's see who went for this at the auction.
0:19:30 > 0:19:35Lot 46 is a two-bed, purpose-built flat,
0:19:35 > 0:19:38obviously in a modern block, this one.
0:19:38 > 0:19:40150 anywhere? 150.
0:19:40 > 0:19:42151?
0:19:42 > 0:19:45I might sell it on his first bid.
0:19:45 > 0:19:49£150,000. Anyone else...?
0:19:49 > 0:19:51151.
0:19:52 > 0:19:54152.
0:19:54 > 0:19:56153. 154.
0:19:56 > 0:19:59155. 156.
0:19:59 > 0:20:02157. 158.
0:20:02 > 0:20:05- 160.- 160. 161?
0:20:05 > 0:20:07160 with you. 161?
0:20:07 > 0:20:09Is there someone else coming in? No?
0:20:09 > 0:20:12160 on my right. Anyone else?
0:20:12 > 0:20:15It's going... It seems a good buy.
0:20:15 > 0:20:18160 for the first time, second time,
0:20:18 > 0:20:22third and last time, are you all done...? 161.
0:20:22 > 0:20:25162?
0:20:25 > 0:20:29It's his first bid. 162? 161 with you.
0:20:29 > 0:20:32First time, second time, third and last time, are you all done...?
0:20:35 > 0:20:37Sold, 161.
0:20:37 > 0:20:42'Quite remarkably, for 9,000 below the guide price, at 161,000,
0:20:42 > 0:20:47'the new owners are Egyptian-born business partners Ahmed and Mahir.
0:20:47 > 0:20:51'Ahmed runs a building construction firm while Mahir is a property developer.
0:20:51 > 0:20:57'Despite knowing each other for a while, this is their first joint venture.'
0:20:57 > 0:21:00- Congratulations. - Thank you very much.
0:21:00 > 0:21:04It's not very often a property goes through under the guide price.
0:21:04 > 0:21:07- You got this for 161,000. - That's right.
0:21:07 > 0:21:12And this one, I was not going to bid for it. I was going to bid for another four flats.
0:21:12 > 0:21:17- How much research did you do into this flat? - Nothing.- Nothing?- Exactly.
0:21:17 > 0:21:22So when you saw this property for the first time, what did you think?
0:21:22 > 0:21:27I tell you honest, we were a little bit disappointed for the condition of the flat.
0:21:27 > 0:21:31It is a very lovely flat as a structure.
0:21:31 > 0:21:34But as a condition, it's not that good.
0:21:34 > 0:21:38But this flat has got tremendous bone structure.
0:21:38 > 0:21:42- It's got lovely, wide, big open-plan rooms. - Yeah, it's a good size, definitely.
0:21:42 > 0:21:46'They've known each other for ten years and over that time,
0:21:46 > 0:21:50'Ahmed's company has refurbished ten flats for Mahir.
0:21:50 > 0:21:56'But this is their first truly joint venture where there's a 50/50 investment.'
0:21:56 > 0:21:59What will you do now to give this flat the wow factor?
0:21:59 > 0:22:05- Wall and ceiling and floor... - Refurbished.- All to be refurbished, yeah.
0:22:05 > 0:22:08Do you mean just rip it all out and start again?
0:22:08 > 0:22:11Yes, and kitchen. The bathroom as well.
0:22:11 > 0:22:16So we'll try to make something beautiful in a short period.
0:22:16 > 0:22:19How much money are you going to spend on this?
0:22:19 > 0:22:22We are going to spend around £10,000.
0:22:22 > 0:22:27It's the figure in our mind to put a new kitchen, a new bathroom suite
0:22:27 > 0:22:32and carpet and decorations, skimming the wall and all this kind of thing.
0:22:32 > 0:22:37Ahmed, how long will it take you to get this ready to sell?
0:22:37 > 0:22:43- Around two weeks, maybe exceed to two and a half weeks. - Two and a half weeks?!- Yes.
0:22:43 > 0:22:49- Who are you going to get in to do the work?- I have my force, I have my people.- Who are your force?
0:22:49 > 0:22:51I have 60 people working for us,
0:22:51 > 0:22:56so these people, I can use some of them to do the job.
0:22:56 > 0:23:00'Two and a half weeks? That's pretty speedy, even with a gang of guys.
0:23:00 > 0:23:04'I think Ahmed will have his work cut out co-ordinating all the tasks.
0:23:04 > 0:23:08'Despite Mahir owning 35 properties himself,
0:23:08 > 0:23:12'they have decided this venture is right for a quick turnaround,
0:23:12 > 0:23:17'so it'll be in, out and sell. No hanging about with these two!'
0:23:17 > 0:23:21How does the relationship work? How do you two guys get on day-to-day?
0:23:21 > 0:23:24- Yes, fine.- It's great.- Yeah.
0:23:24 > 0:23:30- We go through all the flats and we see what we're going to do.- Yes.
0:23:30 > 0:23:35And we decide what we're going to do, what type of kitchen we're going to do,
0:23:35 > 0:23:39- what colour of tiles we're going to do. That's it.- That's all.
0:23:39 > 0:23:43Is there quite a big future for you two as a double act?
0:23:43 > 0:23:47- Yes.- Yeah. - And he's happy that he has me.
0:23:47 > 0:23:50And I'm happy because I'm buying, he's doing.
0:23:50 > 0:23:55'With Ahmed managing his buildings and Mahir coaching from the sidelines,
0:23:55 > 0:24:01'they form a formidable team. Let's hope they get the results they want.'
0:24:02 > 0:24:05Ahmed and Mahir's gamble has paid off big-time.
0:24:05 > 0:24:09Still, if it was me, I'd be hanging on to this place.
0:24:09 > 0:24:14I'll be interested to see if they get what they want for it in this market.
0:24:14 > 0:24:17Join me later to see this flat transformed.
0:24:18 > 0:24:24'Coming up in Wootton Bassett, the colour scheme in this room might not be to everyone's taste.'
0:24:24 > 0:24:27It's a nice sized space. It's a good start.
0:24:28 > 0:24:34'We're going back for the second half in Wembley and the team is doing well.'
0:24:34 > 0:24:38I think he's quite a good partner and he's very helpful.
0:24:39 > 0:24:45'But first we return to Tavistock and what would a carpenter put into a refurbishment?'
0:24:45 > 0:24:48New frames, new doors, new skirting.
0:24:53 > 0:24:57'Time now to go back to Tavistock in Devon.
0:24:57 > 0:25:01'Earlier in the programme, Michael, a local carpenter,
0:25:01 > 0:25:07'had paid £126,000 for this derelict, three-storey property that was in a terrible state.
0:25:07 > 0:25:12'It was his first development project, but he felt the time was right
0:25:12 > 0:25:17'as he had taken redundancy from his previous job and was raring to go.'
0:25:17 > 0:25:19What experience have you got in DIY?
0:25:19 > 0:25:25I'm a carpenter anyway. I've done that for the last 30 years and I just want to work for myself now.
0:25:25 > 0:25:29- So you're going to be your own boss?- Yeah.- Fabulous.
0:25:29 > 0:25:33'It's now four months later and we met up again with Michael.
0:25:33 > 0:25:38'Certainly, the grubby exterior has scrubbed up rather well.
0:25:38 > 0:25:44'You still enter this topsy-turvy house on the top floor, but that shabby lounge has been transformed
0:25:44 > 0:25:47'with new carpentry, plaster and a fire.
0:25:51 > 0:25:54'At the back of the property on this top floor,
0:25:54 > 0:26:01'the separate kitchen and dining rooms have been opened up into a terrific kitchen-diner.
0:26:01 > 0:26:04'It's really light and so much better.
0:26:04 > 0:26:08'It's unrecognisable from what we saw and smelt all those months ago.
0:26:09 > 0:26:13'The whole place has been completely rewired
0:26:13 > 0:26:15'and new central heating put in,
0:26:15 > 0:26:19'but where on earth do you start with a property like this?'
0:26:19 > 0:26:21The first job was to clear the site,
0:26:21 > 0:26:27the back garden which was chock-a-block with caravans, sheds, greenhouses.
0:26:27 > 0:26:29And gut the whole house completely.
0:26:29 > 0:26:34We replaced all the flooring, re-plastered the walls, the ceilings, gas central heating.
0:26:34 > 0:26:39'Being a chippy, Michael did the majority of the carpentry himself,
0:26:39 > 0:26:43'but getting all the old stuff out must have been a nightmare.'
0:26:43 > 0:26:46Pulling it out is fine. It's replacing it.
0:26:46 > 0:26:52'The work is definitely to a high standard. Down one flight of stairs from the top floor,
0:26:52 > 0:26:57'the two larger bedrooms have been totally refurbished with a neutral colour scheme
0:26:57 > 0:27:00'and a neutral smell now, thank goodness!
0:27:00 > 0:27:04'The smaller third bedroom under the stairs looks much more inviting.
0:27:04 > 0:27:10'It still looks out on to the front of the house where a terraced garden has been created.'
0:27:10 > 0:27:14This is the middle floor. It's all new doors, new frames,
0:27:14 > 0:27:18new skirting, completely redecorated.
0:27:18 > 0:27:22Into here which is probably the biggest change on this level -
0:27:22 > 0:27:26a new bathroom suite, new flooring, a complete change from what was here.
0:27:26 > 0:27:31'Apart from the woodwork, Michael has also tiled this main bathroom.
0:27:31 > 0:27:36'Down another set of stairs is the lower floor where there is a huge change.
0:27:36 > 0:27:40'That terrible, dirty kitchenette has been ripped out.
0:27:40 > 0:27:45'New partition walls have been built, creating a hallway and the light now floods in.
0:27:45 > 0:27:48'He's done an amazing job.'
0:27:48 > 0:27:55We're on the ground floor which is probably the biggest transformation of the whole property.
0:27:55 > 0:28:01On this side, we've put a partition in and a new en-suite which was just a little alcove with a toilet in.
0:28:01 > 0:28:05As you come further in, there's a wardrobe with storage space.
0:28:05 > 0:28:10And new ceilings, new walls, completely re-plastered and re-decorated.
0:28:10 > 0:28:16'It's not a massive en-suite, but Michael's brother-in-law and a friend did the plumbing and tiling.
0:28:16 > 0:28:21'Michael concentrated on the joinery, but why has he left it all untreated?'
0:28:21 > 0:28:27Well, I've done that. There was a reason behind leaving all the timber bare.
0:28:27 > 0:28:31If someone buys the property, they can either paint the timber
0:28:31 > 0:28:34or they can varnish it. It's up to them what they do.
0:28:34 > 0:28:40'Outside, the work's continued. The guttering has been replaced as have the fascia boards
0:28:40 > 0:28:47'and new windows have gone in on the ground floor. Did Michael stick to his budget of £17,000-£20,000?'
0:28:47 > 0:28:52I think I spent around the £32,000 altogether. That includes legal fees
0:28:52 > 0:28:58and obviously I paid myself a wage in that figure for 16 weeks, which works out at about £6,000.
0:28:58 > 0:29:06So I suppose budget-wise I'm about £3,000 over budget to what I initially thought.
0:29:06 > 0:29:14'So about £23,000 on the work, but considering the tremendous transformation, he must be chuffed.
0:29:14 > 0:29:18Yeah, very proud, really. The outcome has been brilliant.
0:29:18 > 0:29:22When you finish the job, that's the best feeling you can have.
0:29:22 > 0:29:26'Does he still plan to put it on the market?'
0:29:26 > 0:29:33It's still to sell. I'd like to rent it out and keep it, but hopefully this generates some profit
0:29:33 > 0:29:36and I'll go on to the next project.
0:29:39 > 0:29:43'Time to find out how two local property experts rate
0:29:43 > 0:29:48'Michael's first development project of this three-storey house.'
0:29:48 > 0:29:52I think the layout of the property is the best it can be.
0:29:52 > 0:29:58You approach at street level and it's made lovely use of the ground floor with the bed sitting room.
0:29:58 > 0:30:03You've got a perfectly good house on this floor and the floor below
0:30:03 > 0:30:10and a completely extra space which could be all manner of things waiting to be used on the ground floor.
0:30:10 > 0:30:15The kitchen's lovely. It's really well fitted, very modern,
0:30:15 > 0:30:22- with a nice dining area as well. - You could probably get four cars alongside each other.
0:30:22 > 0:30:27In this part of Tavistock, like most towns, parking is at a premium.
0:30:27 > 0:30:33'That would be a big attraction for tenants as well, if Michael changed his mind and let the house.
0:30:33 > 0:30:36'But would it generate much income?'
0:30:36 > 0:30:40I would expect the rental to be £600-£650 per calendar month.
0:30:40 > 0:30:44If you rent out the whole shebang, all three floors,
0:30:44 > 0:30:51you're probably looking at... £625 per calendar month, maybe a smidgen more.
0:30:51 > 0:30:55'A nice little earner. Is Michael tempted?'
0:30:55 > 0:31:02Yeah, that sounds about right for this area, but I'm looking to sell it, so that don't come into it.
0:31:02 > 0:31:08'Let's see if all his hard work has been worth it. Remember, Michael paid £126,000 at auction
0:31:08 > 0:31:15'and has spent £32,000 refurbishing the house, including his salary and all legal fees.
0:31:15 > 0:31:20'So £158,000 in total, but what's it worth now?'
0:31:20 > 0:31:24I would market this property at £180,000.
0:31:24 > 0:31:30I don't think it would fetch £200,000, but £185,000-£190,000, pretty good chance.
0:31:31 > 0:31:36'£185,000 would generate around £27,000 gross profit
0:31:36 > 0:31:40'before deducting the usual selling expenses.'
0:31:40 > 0:31:47I was expecting a little bit more, about 195 or such, but I'm still happy with the valuations. Profit.
0:31:47 > 0:31:54'Remember, Michael paid himself £6,000 for his time, so for his first project it's gone pretty well.
0:31:54 > 0:31:56'What now?'
0:31:59 > 0:32:05Hopefully, sell this one as soon as possible and find another property, at auction or whatever.
0:32:05 > 0:32:10If I can find one or two more like this and make a bit more profit,
0:32:10 > 0:32:16eventually I'll let properties out and that becomes a pension in the future.
0:32:20 > 0:32:27We're now in picturesque Wiltshire in a town that's become inextricably linked with the military -
0:32:27 > 0:32:31Wootton Bassett. RAF Lyneham has a large base here
0:32:31 > 0:32:36so many families in the area have military connections.
0:32:36 > 0:32:41It's just a short walk from the town centre to this road and our property.
0:32:41 > 0:32:45It's very close to a very popular primary school,
0:32:45 > 0:32:51so if you're looking to move for the children's sake, that might be a consideration.
0:32:51 > 0:32:55It could also affect the resale value. What am I here to see?
0:32:55 > 0:33:01Three-bedroomed mid-terrace at a guide price of £115,000. Let's take a look.
0:33:01 > 0:33:06'From the outside, things look to be in pretty good order.
0:33:06 > 0:33:12'New double-glazed windows, no cracks to report and a fair-sized front garden.'
0:33:12 > 0:33:16So what have we got? Nice little entrance porch,
0:33:16 > 0:33:19then through to the main part.
0:33:19 > 0:33:21Again, nice entrance area here.
0:33:21 > 0:33:27Stairs up to the bedrooms. It feels quite solid. My guess is it's an ex-local authority house.
0:33:27 > 0:33:31Those generally have lots of storage space.
0:33:31 > 0:33:36Big-sized living room area. It's tired, dated, check the gas fire.
0:33:36 > 0:33:43Clearly it needs new carpets, but it's a nice-sized space. It's a good start.
0:33:43 > 0:33:50'There's a door in the living room leading to the second reception room, which is spacious.
0:33:50 > 0:33:57'Then a well-proportioned kitchen, but the key to making this work is to take out the adjoining wall,
0:33:57 > 0:34:00'creating one big family space.'
0:34:00 > 0:34:07So upstairs, as well as three bedrooms, bathroom and toilet, there's an interesting opportunity.
0:34:07 > 0:34:12The loft is huge. The obvious thing is maybe a loft conversion,
0:34:12 > 0:34:18but it might not be that obvious. It's going to cost around £30,000 to put a good loft conversion on.
0:34:18 > 0:34:24The properties here have a ceiling price of round about £165,000.
0:34:24 > 0:34:30So the financials might not stack up. In addition, nobody else has done a loft conversion in the road,
0:34:30 > 0:34:36so a precedent has not been set. In other words, it might be difficult to get planning permission.
0:34:36 > 0:34:39Good idea. Could be lots of trouble.
0:34:39 > 0:34:44'Adding an extra room would make all the difference to a family,
0:34:44 > 0:34:51'but for an investor the returns wouldn't necessarily justify it, so I'd just keep things as they are.
0:34:51 > 0:34:57'Back down here, the bathroom needs a complete overhaul, but the bedrooms are all a good size.
0:34:57 > 0:35:03'Take a look out the window and there's a huge garden that's perfect for a big family.
0:35:03 > 0:35:10'It all looks too good to be true and whenever I say that you know there may be trouble ahead.
0:35:10 > 0:35:14'The first issue - it used to be of "non-standard" construction,
0:35:14 > 0:35:21'but work was done to make it more secure and mortgageable, but there are other issues.'
0:35:21 > 0:35:26Now the property is ex-local authority and it does come with a few covenants,
0:35:26 > 0:35:33the first of which is that you can't park your car outside the front. So forget about a dropped kerb.
0:35:33 > 0:35:38There's also a covenant protecting air and light for neighbours.
0:35:38 > 0:35:44So no double-storey extensions here. Just single-storey extensions like that one.
0:35:44 > 0:35:48And, finally, you're not allowed to keep unusual pets.
0:35:48 > 0:35:55So owners of boa constrictors, scorpions and pet whales need not apply. Sorry.
0:35:55 > 0:36:02'That aside, the place is in good condition and just needs updating and renovating.
0:36:02 > 0:36:09'With that guide price of £115,000, we asked a local estate agent for his thoughts on the property.'
0:36:10 > 0:36:14Good size, plenty of space, really good gardens.
0:36:14 > 0:36:19Being ex-local authority property, good plot, good room sizes.
0:36:19 > 0:36:25Plenty of scope for extension. I would suggest a single-storey extension.
0:36:25 > 0:36:30If you were to do a double, you wouldn't get your money back.
0:36:30 > 0:36:34'That's important when developing. Never lose sight of the end value
0:36:34 > 0:36:40'and don't forget the restrictions the covenant places on extensions.
0:36:40 > 0:36:47'As always, check the legal pack before you buy. But what about being of non-standard construction?'
0:36:47 > 0:36:52It was non-standard construction. It was a pre-fab, concrete.
0:36:52 > 0:36:56Obviously work has been carried out on the property
0:36:56 > 0:37:03whereby a layer of insulation has been added and a layer of bricks, which makes it mortgageable.
0:37:03 > 0:37:05So it's open to a wider market.
0:37:05 > 0:37:09'Let's talk figures. How does it rate for resale?'
0:37:09 > 0:37:16Once renovated, I'd look to sell the property for approximately £150,000-£155,000.
0:37:16 > 0:37:22With an extension, you'd be looking to sell the property for about £160,000, perhaps £165,000.
0:37:22 > 0:37:26'What kind of rental income could it generate?'
0:37:28 > 0:37:32I'd look to market this property for 550 per calendar month.
0:37:40 > 0:37:44Well, covenants aside, this is a good property to go for.
0:37:44 > 0:37:48All the major remedial work has been done and it's in good nick inside.
0:37:48 > 0:37:56With the rental market in the area resurging, you've got your options covered. Let's see who fancied it.
0:37:59 > 0:38:04Number 10. Start me at the guide, somebody. 115.
0:38:04 > 0:38:06There we are. 115.
0:38:06 > 0:38:10116? We'll go in ones, shall we? At £115,000.
0:38:10 > 0:38:1516. 17. 18. 118 I've got. 19 if you will.
0:38:15 > 0:38:17At £118,000. 119.
0:38:17 > 0:38:20And 20? 120.
0:38:20 > 0:38:22At £120,000. I'll take one.
0:38:22 > 0:38:27At 120,000. OK, 121. 122, I've got it. 123 sat down.
0:38:27 > 0:38:34124 to you. At 124. The bid is on the right-hand side at 124. 125 if you like?
0:38:34 > 0:38:39124 and a half. OK, we'll do fives. 125, far right.
0:38:39 > 0:38:43Against you, sat down again. At £125,000.
0:38:43 > 0:38:51The lady on the far right at 125. Anybody else for 500? Otherwise I'm going to sell it at 125 first time,
0:38:51 > 0:38:55125 second time, 125, third and last time.
0:38:55 > 0:38:59It's yours, which is Number 3. Thank you very much.
0:38:59 > 0:39:06'The happy buyer there was Sue. She and her husband Gary clinched the deal at £125,000,
0:39:06 > 0:39:08'£10,000 over the guide price.
0:39:08 > 0:39:13'Gary serves in the RAF and Sue used to be a chef, also in the RAF,
0:39:13 > 0:39:20'but now looks after their two children. I met her at the property to hear about their plans.'
0:39:22 > 0:39:25- Sue, lovely to meet you.- Hello. - Tell me why you wanted the house.
0:39:25 > 0:39:31We're looking for a place to come when my husband leaves the Air Force.
0:39:31 > 0:39:35And the children have had to move several times recently.
0:39:35 > 0:39:39They've started senior school and need somewhere steady.
0:39:39 > 0:39:43OK, how much moving around have your children had to do?
0:39:43 > 0:39:49They've moved to Cyprus about three years ago
0:39:49 > 0:39:55and we came back just under a year ago. That's been their main moves. Those before they can't remember.
0:39:55 > 0:39:59- Must be a bit unsettling. - It has been. The last twice has.
0:39:59 > 0:40:04This time it's taken probably six months to settle and make friends.
0:40:04 > 0:40:08- So this is your base from now on? - It will be until they finish school.
0:40:08 > 0:40:12'The family have a home in Cornwall which they will return to,
0:40:12 > 0:40:17'but for now bringing stability to their children is the main aim.
0:40:17 > 0:40:24'It looks like Daniel, aged 13, and Frances, 11, are already settled in.
0:40:24 > 0:40:30'Sue likes the area and feels it has a real community spirit. She thinks the £125,000 they paid for it
0:40:30 > 0:40:36- 'could be a real bargain.' - We were pleased with what we paid. I did a lot of research
0:40:36 > 0:40:42and spent a lot of time on it. My friends and family were worried that we wouldn't get it
0:40:42 > 0:40:50and I'd put my heart and soul into it, but I was very determined that we wouldn't go over our budget.
0:40:50 > 0:40:56- You just got it on the stamp duty threshold. Was that deliberate? - We were lucky it happened like that.
0:40:56 > 0:40:59I do believe that had it landed...
0:40:59 > 0:41:04had the sequence come a different way, we'd be paying stamp duty.
0:41:04 > 0:41:11'So Lady Luck was shining on Sue that day, but she also had more good fortune after the auction.'
0:41:11 > 0:41:16Luckily, the legal pack was out in good time and I read through it,
0:41:16 > 0:41:22but it was watching Homes Under The Hammer where you had somebody who hadn't realised their building was
0:41:22 > 0:41:29non-standard construction. And I was like, "Oh! I'm sure they mentioned something!"
0:41:29 > 0:41:34I was on the phone, did some digging and found it was non-standard,
0:41:34 > 0:41:39but there was a certificate available and that was tracked down.
0:41:39 > 0:41:42- So we helped you out? - You certainly did!
0:41:42 > 0:41:49- What are you going to do to get it how you want it?- New plumbing, new electrics, strip the walls, repaint.
0:41:49 > 0:41:55Then, depending on what happens with my husband will decide whether we rent it out for a short time
0:41:55 > 0:41:57or whether we move in.
0:41:57 > 0:42:03If we move in, we'll extend the house, making it more to how we like to live.
0:42:03 > 0:42:08'Sue has a budget of £15,000-£20,000 for the straightforward renovation,
0:42:08 > 0:42:13'which she expects to take up to about three months,
0:42:13 > 0:42:18'but if they decide to move in, extending will take another 10 grand
0:42:18 > 0:42:25'and take a further three months. So their future is very undecided, but then they're used to that.'
0:42:25 > 0:42:30As a military family, you're always waiting for the next decision that somebody makes
0:42:30 > 0:42:34as to where they want you and you roll with the punches.
0:42:34 > 0:42:40- So your fate is in somebody else's hands.- Always! - That must be a bit strange.
0:42:40 > 0:42:47It is. It's quite exciting when you start out and I was always looking forward two years
0:42:47 > 0:42:49and wondering where we'd be.
0:42:49 > 0:42:55When it starts to impact on other people, you have children, and it impacts on their lives,
0:42:55 > 0:43:01then although you know that you've married into the Air Force or are in it and that involves moving,
0:43:01 > 0:43:06you start to realise it does affect other people and you have to reassess
0:43:06 > 0:43:13whether you stay together as a family, whether you commute, and those decisions.
0:43:13 > 0:43:18'Being on the move so much must have been stressful for Sue and her family, but I reckon
0:43:18 > 0:43:23'they've found somewhere they can live very happily for some time.'
0:43:23 > 0:43:29It's a fantastic family house. This garden we're in is huge.
0:43:29 > 0:43:31The rabbit and dog will be happy!
0:43:31 > 0:43:35The dog is a Collie, so she has plenty of room to run around here.
0:43:35 > 0:43:41- Are you aware about the covenants about pets?- Yes, I believe I can't keep any unusual pets.
0:43:41 > 0:43:47- I'm not sure what is classed as unusual.- The rabbit and Collie should be fine.- I think so, yes.
0:43:47 > 0:43:53- Well, congratulations. Good luck with it all.- Thank you.
0:43:53 > 0:43:59It looks like the children have got some stability, the dog and the rabbit have got a nice garden.
0:43:59 > 0:44:05In terms of whether or not they rent or live in this place, that's down to somebody else,
0:44:05 > 0:44:12but I'm sure Sue will enjoy her first experience of developing her own property. Find out more later.
0:44:15 > 0:44:21Transforming a property from a worn-out shell into a home can be rewarding and profitable.
0:44:21 > 0:44:26But did everything go to plan for our buyers today? Let's find out.
0:44:26 > 0:44:32For many football fans and players, the name Wembley represents a place of hopes and dreams,
0:44:32 > 0:44:36somewhere they aspire to, the pinnacle of success.
0:44:36 > 0:44:42As the infrastructure around the new stadium improves, it's becoming a desirable place to live
0:44:42 > 0:44:45with new developments appearing.
0:44:45 > 0:44:52So when a '90s-built, two-bedroom flat came up for auction, developer Mahir and builder Ahmed
0:44:52 > 0:44:58thought that at £161,000 it was perfect for their first joint venture.
0:44:58 > 0:45:04With over 10 years' experience in the property game, they were looking to score a quick success.
0:45:04 > 0:45:10- Ahmed, how long will it take you to get this ready to sell? - Around two weeks.
0:45:10 > 0:45:14- Maybe two and a half weeks. - Two and a half weeks?!- Yes.
0:45:14 > 0:45:22'So this was to be fast-tracked, using Ahmed's men to do the work and Mahir's property developing skills.
0:45:22 > 0:45:28'Could they really turn it around that fast? Just over five weeks later, we're back to find out.
0:45:28 > 0:45:34'And yes, they've achieved their goal. The flat has been refurbished throughout,
0:45:34 > 0:45:37'with new decor and flooring,
0:45:37 > 0:45:40'a bathroom suite,
0:45:42 > 0:45:44'and a kitchen.'
0:45:46 > 0:45:51The kitchen was in very bad condition, all the units broken.
0:45:51 > 0:45:55And even the cooker was not good.
0:45:55 > 0:46:01So I decided, me and Mahir, to demolish all of the kitchen and buy a new one.
0:46:01 > 0:46:07I'm very happy with the kitchen now, with the design and even the quality of the kitchen as well.
0:46:07 > 0:46:15'So it's all looking great. What about that really tight timescale? Did they hit their target?'
0:46:15 > 0:46:22We've actually done it really quick because Ahmed is busy with another project, you know.
0:46:22 > 0:46:27I was planning to do the work in two weeks and, in fact, I've done it in two weeks.
0:46:27 > 0:46:33'Clearly with Ahmed's project managing skills and Mahir's developing expertise,
0:46:33 > 0:46:40'they're perfectly matched. They've scored a winner with this Wembley flat.'
0:46:40 > 0:46:44I always rely on him to do this job because we are a team together.
0:46:44 > 0:46:46He's done for me a few jobs before.
0:46:46 > 0:46:51I think he's quite a good partner and he's very helpful as well.
0:46:51 > 0:46:56We have the same mentality together when we buy something.
0:46:56 > 0:47:03And we don't have any problems, we don't feel any problem. He's easygoing with me.
0:47:03 > 0:47:09'But great teamwork and good working partnerships count for nothing in the property business
0:47:09 > 0:47:15- 'if you don't get your finances right.'- I was thinking about spending around £15,000,
0:47:15 > 0:47:19but in fact I spent around £13,000-£14,000.
0:47:19 > 0:47:24'We've invited two local estate agents to look around the property
0:47:24 > 0:47:28'to see if the effort and money spent has been worthwhile.
0:47:28 > 0:47:35'A £14,000 outlay on top of their £161,000 purchase price takes the total
0:47:35 > 0:47:41'to £175,000. But has the speed of the refurbishment impacted on the quality?'
0:47:41 > 0:47:44They've done a very good job.
0:47:44 > 0:47:48It's nice and bright. They've really put a lot of effort into it
0:47:48 > 0:47:52and made it very clean, tidy and ready for the next person.
0:47:52 > 0:47:55It's a nice, clean, tidy flat.
0:47:55 > 0:47:59It's a modern development, which is appealing for a lot of people
0:47:59 > 0:48:05who don't want to do maintenance. It's ready to move into. They're all plusses.
0:48:05 > 0:48:11The only negatives I can see, I'd have probably carried the laminate flooring all the way through.
0:48:11 > 0:48:15A lot of people feel it's cleaner, tidier and more hygienic.
0:48:15 > 0:48:22'Ahmed and Mahir are keen to sell the flat straight on. Would rental valuations make them think again?'
0:48:22 > 0:48:26I would think you could rent this out for £1,000 per month.
0:48:26 > 0:48:30I would say, on rental, very strong demand at the moment.
0:48:30 > 0:48:37A nice finish like this, ready to move into, I'd say £950 per calendar month.
0:48:37 > 0:48:42Very good, but we're planning to sell it to go for another project.
0:48:42 > 0:48:46'OK, so that's clear. They definitely want to sell,
0:48:46 > 0:48:52'but will they get much return on their £175,000 investment in the current market?'
0:48:52 > 0:48:56I would probably put this on the market for £199,950,
0:48:56 > 0:49:00and would hope to achieve somewhere within £190,000-£195,000.
0:49:00 > 0:49:07I would be able to sell this flat if it came onto the market for £190,000-£195,000.
0:49:07 > 0:49:11- Great. Wow!- Very good. - Yes, this is a very good start.
0:49:11 > 0:49:14- Isn't it?- Very good.- A good start.
0:49:14 > 0:49:19'If they do get those prices and make £15,000-£20,000 profit,
0:49:19 > 0:49:27'you could say they scored a winner with this flat and at Wembley that's what everyone hopes to achieve.'
0:49:33 > 0:49:40Earlier in the programme, Sue and Gary bought this mid-terrace in Wootton Bassett for £125,000.
0:49:41 > 0:49:48Sue is a former chef with the RAF and her husband, Gary, still serves with the Air Force.
0:49:48 > 0:49:53They hope to make it their family home when Gary leaves the RAF,
0:49:53 > 0:49:58but their plans were still up in the air.
0:49:58 > 0:50:04Depending on what happens in the next couple of months with my husband will decide if we rent it or move in.
0:50:04 > 0:50:07If we move in, we'll extend it.
0:50:08 > 0:50:15'Now it's just under three months later and we've flown back to meet up with Sue, Gary
0:50:15 > 0:50:17'and Frances and Daniel.
0:50:17 > 0:50:22'There's a new front door and, judging by the refurbishment inside,
0:50:22 > 0:50:26'this purchase was no flight of fancy.
0:50:26 > 0:50:32'Just like an ace pilot, the living room has now been decorated,
0:50:32 > 0:50:38'while at the back of the house the dining room and kitchen both remain as separate rooms.
0:50:40 > 0:50:44'Upstairs, the new bathroom complements the bedrooms,
0:50:44 > 0:50:48'but as Gary now admits, he wasn't taken with the house to start with.'
0:50:50 > 0:50:56Initially when we saw it, I was like, "No," but once I visited it and looked through the grime,
0:50:56 > 0:51:01you could see we could work with it. We've virtually gutted the place and rebuilt it.
0:51:01 > 0:51:09We've completely replumbed, electrics, stripped the walls, Gary spent weeks sanding it.
0:51:09 > 0:51:15It's been a lot of hard work, more so on Sue's part. I just dip in and out. I've got other duties.
0:51:15 > 0:51:18But, yeah, it's been long days.
0:51:19 > 0:51:25'The former local authority house is a sturdily-built property.
0:51:25 > 0:51:31'In future, Sue and Gary are contemplating adding an extension within the permitted development,
0:51:31 > 0:51:37'but the for the time being the kitchen has been refurbished with some features missing!'
0:51:37 > 0:51:41Over here was a larder. I had great fun smashing this up.
0:51:41 > 0:51:47I didn't want to go for a kitchen/diner because my family's too messy
0:51:47 > 0:51:52and I like to shut the door on it. Also, the furniture we've acquired
0:51:52 > 0:51:57the lounge and the dining room all match together.
0:51:57 > 0:52:03I didn't want to leave two spaces for a dishwasher and washing machine, so in the shed we put the plumbing
0:52:03 > 0:52:06for a washing machine out there.
0:52:06 > 0:52:13'Sensibly, Sue's plumber and her electrician have laid the necessary pipes and cables in the property
0:52:13 > 0:52:18'for any future extension. All the family have been pitching in.'
0:52:18 > 0:52:24We did little bits around the house. Bits and bobs. It was quite fun.
0:52:24 > 0:52:30I did a bit of the garden. I had to take out the roots of the weeds. I was there for hours.
0:52:30 > 0:52:34'Well, Frances' and Daniel's efforts really paid off.
0:52:34 > 0:52:40'The work's taken just under three months and the three bedrooms are now ready to be furnished.'
0:52:40 > 0:52:44There was a cupboard that sat here and really cut down the space.
0:52:44 > 0:52:48We've increased the slope on the stairwell,
0:52:48 > 0:52:55taken out this cupboard, and the plan is to put in a cabin bed, roughly at bunk bed level,
0:52:55 > 0:53:01and Daniel, once he gets into it, will be more than happy - even though it's the smallest room!
0:53:01 > 0:53:07Unfortunately, I get the small room because I got the big room in the house we're in now,
0:53:07 > 0:53:09so it's her turn.
0:53:09 > 0:53:14'Remember, they had a budget of £15,000-£20,000 to refurbish the house.
0:53:14 > 0:53:18'There was a further £10,000 pencilled in for the extension,
0:53:18 > 0:53:23'so will they move in straight away and how much have they spent?'
0:53:25 > 0:53:30I think we've spent £17,500 and that's with £3,000 costs.
0:53:30 > 0:53:36The costs were more than you would expect because there was a 1% extra
0:53:36 > 0:53:42to pay the seller's legal fees, but I knew that when we did the calculations.
0:53:42 > 0:53:48'It was very tempting to move in, but it makes sense for us to stick to renting out
0:53:48 > 0:53:52'until Gary's out the Air Force and then move in.'
0:53:54 > 0:53:59Time now to hear what two local estate agents think of it and its rental potential.
0:53:59 > 0:54:06Clearly, it's a good-sized family home. They've spent a lot of time and effort modernising it.
0:54:06 > 0:54:11- There's plenty of space, flexible. - I was very pleasantly surprised.
0:54:11 > 0:54:16I wasn't expecting this today. Lovely fixtures and fittings.
0:54:16 > 0:54:20Bathroom is particularly nice.
0:54:20 > 0:54:25The hard work's been done. Someone could come in now, personalise it.
0:54:25 > 0:54:28There's a good canvas here.
0:54:28 > 0:54:34'Let's talk figures. What income could they achieve if they found tenants?'
0:54:34 > 0:54:38Rental-wise, you'd be looking around £650 per calendar month.
0:54:38 > 0:54:44I would expect this property to achieve somewhere in the region of £650 per calendar month.
0:54:44 > 0:54:50'Are they happy with that income in the short term, until they move in themselves?'
0:54:50 > 0:54:58That's the top end of what we were expecting. When we first started, it was with the idea of £530,
0:54:58 > 0:55:02but researching says we can get a lot more.
0:55:02 > 0:55:06'What's the value of the house now after all that hard work?
0:55:06 > 0:55:11'They paid £125,000 at the auction and they've spent £17,500,
0:55:11 > 0:55:14'making a total of £142,500.'
0:55:16 > 0:55:22I would value this property at approximately £145,000, to achieve somewhere around 140.
0:55:22 > 0:55:27I think you'd be looking at around £160,000. It's a premium property.
0:55:27 > 0:55:29We'd like to get that premium price.
0:55:29 > 0:55:34'Well, £160,000 would produce a gross profit of £17,500,
0:55:34 > 0:55:41'while the lower valuation of £145,000 would generate £2,500 gross profit.'
0:55:44 > 0:55:47- Wow.- Quite a difference.
0:55:47 > 0:55:51I'm really surprised at 160. Very pleased.
0:55:51 > 0:55:55145 is a little bit less than I was expecting.
0:55:55 > 0:55:59'Sue's worked very hard here and the family are delighted.'
0:55:59 > 0:56:06I'm really proud of my mum for doing this. It was such a dump and she's turned it into something really nice.
0:56:06 > 0:56:11'Would she now be tempted to tackle another refurbishment?'
0:56:11 > 0:56:15I would be tempted to do it again if I could raise the funding
0:56:15 > 0:56:20or I'd happily project manage for somebody else. I've thoroughly enjoyed it.
0:56:20 > 0:56:27'When Gary's left the RAF, would he embark on another? If so, what advice would he give?'
0:56:27 > 0:56:33I'd probably have a more active part next time. I've had very little input, really. I'm the labourer.
0:56:33 > 0:56:37- I listen to the boss. - Have a good wife!
0:56:37 > 0:56:44'This may be Sue and Gary's first renovation, but I reckon this RAF couple have hit the heights here.'
0:56:47 > 0:56:53Whether a seasoned professional or a novice, there are always things to learn about buying property.
0:56:53 > 0:56:59- So join us next time for some more auction action.- We'll see you then. - Goodbye.- Goodbye.
0:57:07 > 0:57:11Subtitles by Subtext for Red Bee Media Ltd - 2011
0:57:15 > 0:57:18Email subtitling@bbc.co.uk