Episode 1 Homes Under the Hammer

Hello and welcome to the show.

Now, all sorts of people buy property at auctions these days,

they attract buyers from all walks of life.

And that's because there are great bargains to be had under the hammer!

So, there's a wide range of buyers, and all sorts of properties available at the auction.

It's a bit of a race to get the best bargains,

and you have to be in it to win it,

but let's see what properties are featuring on today's programme.

I wonder if this bungalow in Oxfordshire has room for expansion.

Outside is going to give us the answer.

In London, I visit this two-bedroom flat which is rather dated,

but appears to have everything you need. Well, almost.

There is something missing, and that's the bathroom.

And I'm in Salford, to see what surprises this house has in store.

So what have we got?

Mess!

All these properties have been sold at auction,

and we'll find out who bought them and what they paid when they went under the hammer.

Third and last time.

I'm in the quintessentially English village of Shrivenham in Oxfordshire.

With it's 18th century churches and thatched cottages,

this charming rural enclave has retained a pleasant sense of tranquillity,

despite being conveniently situated near Swindon and Oxford.

Just ten-minutes walk from the centre of Shrivenham

is this quiet residential street.

On one side you've got large family homes,

and on the other, the property I'm here to see.

It's a bungalow, and as you know, I like bungalows.

They've got lots of scope and I think they appeal to a wide market.

So, this is it.

At a guide price of £190,000, it's got two bedrooms,

and judging by the state of the garden,

it could do with a bit of tender, loving care.

Let's see what the inside's like.

It is certainly a quiet location,

ideal for a young family or perhaps a retired couple.

So, what's on offer?

OK, well, nice, wide entrance corridor here,

we like that, it gives the feeling of space to the centre of the bungalow.

And then, basically, as is normal with this kind of property,

you have your front living area there, your first bedroom there.

A loo and separate bathroom.

It's up to if you want to knock those two together.

I like having them separate.

For a family, it's quite a good thing to have.

Second bedroom there, and then through to the kitchen.

Interestingly enough, the rest of the house didn't feel that dated,

but walk in here and you do feel the house hasn't been touched

that much since it was built.

The units could even be original from the, I guess, 1960s or so.

Not a bad sized space,

and it gets even better when you come out here,

because you've got this little area.

It's currently a workshop, and, through there, a garage,

but I'm wondering if there's scope for expansion?

Outside could give us the answer.

The back garden is where this rather tired

and dated bungalow blossoms into life.

# Blossom, smile some sunshine down my way

# Lately, I've been lonesome... #

There's space to extend, perhaps even without planning permission,

if it's completed within what's called "permitted development".

However, it would still have to meet building regulations.

All in all, this is lovely property.

Internally, it needs to be completely refurbished,

but the rooms are well proportioned, and structurally, it's sound.

I invited a local estate agent to give us his opinion on this place,

which had a guide price of £190,000.

It is great plot,

it's got a really good-sized garden, the rooms are set out really nicely.

It does need a little bit of updating,

but it's not going to take a lot to make it a really good property.

What about an extension?

To extend the property, you can either go

into where the garage is now, or go off the back.

Going off the back wouldn't diminish the garden size,

or if you want to keep the garden,

go to the side and use the utility room and the garage

and make that into more reception rooms or bedrooms, whatever you feel.

If the property were renovated, but not extended,

what sort of income could it generate on the rental market?

If you were to rent the property out once renovation is completed,

I think, in this current market,

you would get probably £650 per calendar month.

And if it was sold?

Resale value would be £280,000, up to maybe £300,000,

depending on what they actually do, and how they finish it.

And, if extended, what sort of figures could it achieve then?

I think, if the property had been extended and finished,

and it was then to go to the rental market as a three-bed,

in this market you'd get £750 per calendar month.

A similar property in the road was extended,

and they put a kitchen-breakfast room on the back,

added a bedroom with an en suite, and that sold for £360,000.

It strikes me that whoever bought this has a basic decision to make.

Do you leave it as it is and just tart it up a little bit,

or do you go the whole hog and do the extension?

It's all going to be about what value add doing that extension would bring.

Let's find out who the person who bought it was

when it went under the hammer.

At £190,000, someone.

Or put me in 180, if you like.

At £180,000.

At £180,000, 182.

At 82, 184, 186,

188, 190.

192, 194,

196, 198,

200. The bid is here at 202.

204.

206. 208.

210, 212,

14, 16, 218,

220, 222.

24, 26.

228, sir, if you'd like.

At £226,000 in the middle, there, for the first time,

and for the second time, at 226, third and last time.

The successful bid of £226,000 came from Bill,

and his son, Nick.

Bill's a partner in a development company

which specialises in building and selling new houses.

But this investment's being made with his 14-year-old son, Nick,

and 16-year-old daughter, Hannah.

-Bill, congratulations!

-OK.

-Tell me why you wanted to buy the bungalow.

A couple of reasons.

After a bit of an investment portfolio, this would be a start,

and the other thing is the children, they are always complaining they

haven't got any jobs, they are a bit young, they can't get anything.

This is an ideal opportunity for them to do a bit whilst we're doing

the renovation, and then as we rent it over the years, there is always

something that needs doing, they get to see all the figures, all of that.

How old are the children at the moment?

Well, 14 and 16.

So a little tricky to get a job

down the supermarket or anything, just yet.

Instead of stacking shelves in supermarkets,

they're learning to become property entrepreneurs.

That's right, yeah, and what Nick did,

he sold his redundant games gear,

and put that money into a property about 18 months ago.

Actually did little bits of work,

painting and gardening and built it up,

and that's now worth about £1,000.

-He's now got £1,000?

-That's right.

So, what's he going to do with this £1,000?

Well, hopefully keep it going,

so I'm not buying them and he's buying them!

-He's 14?

-Yes.

-You must be proud of him.

Yeah, yeah, it's good. It hasn't got blown on something else.

Now, my daughter tried a similar thing.

Unfortunately, she's only up to £60. She spent it!

-On?

-Guess what? All the usuals!

-Clothes, shoes!

Well, I have to agree with young Nick.

It's better to invest in bricks and mortar than shoes and handbags.

From his £1,000 pot of cash,

Nick will invest £200 in this property,

and the rest in his father's other projects.

Nick is raring to get started on this renovation.

So, what will he be doing?

As soon as you leave, there's a tree to be chopped down.

Right. Out with the chainsaw, you know!

He's a bit young for...

-Well, I don't know!

-It's not that big a tree!

You've already got him being a property baron,

so why not break out the dangerous industrial machinery?

Here you go, son!

Anyway, a bit of that, and a bit of gardening,

and then, once the builders have moved on a little bit,

will be all the painting and finishing and cleaning,

and then out for rental.

And presumably, this is something you hope

he will carry on through his life.

That's right, yeah.

He seems to be, so far, interested, always come back, you know,

never refused a day's painting and work and what have you, so far,

so, hopefully stick with it. You never know!

Bill's giving his children an education in finance

and the benefits of hard work, using this renovation as the example.

So, talk me through exactly what you are going to do with this place.

At the moment, it's a two-bed, two double bedrooms,

but I think it's, kind of '60s, it's a bit tired and dated.

So what we're going to do is extend off the back

by about three metres, put a diner with a kitchen,

and then put a master bedroom out the back with an en suite.

Then pretty much leave the rest of the house as is,

but new central heating, double glazing,

obviously a brand new kitchen,

the existing bathroom will be done as well.

Just make sure all the insulation, all the usual things are OK,

electrics are OK. Quite a lot of work, actually.

So, what's the budget for the work?

The budget? Well, about 50,000, so quite a lot.

The extension will be about 30 square metres,

and then internally another 20, 25, so that's your 50,

and then there's some fees, obviously, as well.

-And the timescale?

-Timescale?

Well, the builders move in the next few days,

and then it will take about six weeks,

and then, you know, catch the late rental market and off we go.

-Wow! So, bing, bang, boom!

-It is, absolutely.

Congratulations in all you're doing, and good luck with it!

-Fantastic.

-We'll look forward to seeing how you get on.

OK, cheers then!

Well, there you go.

Bill combining taking on what could be a profitable venture

with teaching his son Nick some really valuable lessons

in property development.

Great stuff. Still, six weeks to get this place sorted out?

Even with a tiny helper, it's a bit tight.

See how they get on later in the show.

I'm in the south west of London, Streatham to be precise.

It's just south of Brixton, with Tooting as its neighbour.

I'm here to see a property less than

a mile from Streatham Common main line train station,

and just over a mile from the nearest Tube, Tooting.

It's a first-floor flat you can see in this Victorian mid-terrace.

Now, it had a guide at auction of £130,000.

Looks like a really nice, solid building from the outside.

It's got a bit of character, as well. Let's go inside and check it out.

I love these Victorian buildings.

The lovely lintels above the windows,

the tiled front path and entrance, perfectly gorgeous.

Let's hope the inside is, too.

So, in the auction catalogue it's described as having three rooms.

We've got a really big room here at the back of the property,

the kitchen is beyond that.

We've got another two rooms here, and here.

You can see it hasn't been decorated in a long while,

so quite a bit of work, cosmetically, to do here,

but you've got a lovely big square room, with three big windows.

You know, it's got lots of character, this property.

It's Victorian, so you've got lots of nice cornicing up there on the ceiling.

You can see there's no central heating, just an old gas fire,

but something I can't help but notice,

a lot of people have gone up into the loft.

You know, that really is a sure-fire way of adding value to a property,

but you do need to get the freeholder's permission

to do so, so I will come back to that in a little while.

So, as I said, pushing up into the attic

will not only add welcome space, but could add value, too.

Right at the back of the property is the kitchen,

and it's tiny, but look at this!

Now, it's not a pasta maker, you may be wondering what that is.

It's an old mangle, where you would have wrung

your clothes out in the olden days, so clearly,

this has not been touched for many, many years.

But, there is something missing, and that's the bathroom.

So far, I haven't come across the bathroom,

so let's have a little look in the units...

Ha, there it is! Can you see that? Look.

There is the bathroom, ladies and gentlemen! Fantastic!

So, it's quite obvious to me, this whole flat

needs to have a bit of a rethink in terms of space,

because a bathroom is absolutely essential.

No, don't worry, the toilet isn't in here as well,

that's got its own room, but that bath will really have to go,

although I suppose it is handy if you wanted to do the dishes

and have a wash at the same time!

# Floating away in the bathtub

# This may sound strange to you. #

Now, coming back to that freehold issue,

the purchaser of this property not only gets the flat,

but will also own the freehold of the entire building.

Now, there are pros and cons to this, of course.

As a freeholder, you're responsible for the upkeep and the maintenance of the building,

but you are entitled to charge ground rent.

So, here it's just £50 a year, and that is not very much.

The big advantage is that you'll also get money every time

one of the flats need to extend their lease.

The ground floor flat below only has a term of 75 years left on their lease,

so those owners, if they want to extend it, you can charge them a good few quid to do so.

Possibly even 10,000 or more, so not bad for a bit of paperwork.

Being the freeholder also means

that you can do any changes to the property you like,

subject to planning approval, of course, so lots of potential here,

but what does a local property expert make of this one-bedroom flat?

We asked one along to take a look.

It's obviously got lots of potential.

It's a tired property at the moment,

but these properties are quite sought after,

and I think the owners here have got their work cut out.

But once they grasp the nettle, as it were,

they should be able to have a really lovely flat.

I would probably convert the existing kitchen into a full-size bathroom,

by opening up the space that's currently between the kitchen

and the loo into a full-size bathroom.

The kitchen would move into the room that is currently used as a bedroom,

or as a living room, and that would make

a decent-sized kitchen that you could eat in.

If you converted that room into a kitchen-diner-lounge area,

that would still leave space for two decent-sized bedrooms,

so what could this flat resell for once the work was done?

Remember, the auction guide price was £130,000.

We've just sold a similar one,

which went for, I think, just under £250,000.

And if the buyer decided to rent it out,

how much could they hope to achieve?

As a two-bedroom flat, you're looking at rentals of somewhere

between 1,000 and 1,200 per calendar month for this area.

You know what? I think this is a good little flat.

It does need a complete cosmetic overhaul,

and, of course, you've got to think about that layout.

You do need to fit a bathroom in somewhere,

but you have got the benefit of the freehold and the possibility to add value by doing that loft.

Let's see who spotted the potential here when we head to auction.

So, who wants to give me a start on this? Lot 74.

150, anywhere?

150 I've got, back of the room.

How much? 151? OK, 151.

152, sir.

152?

153. 154.

155.

156. 157, sir.

158. 159.

160.

160, do you want to come in?

160?

Yeah, 160. 161.

162.

162?

If not, back of the room, been there all along, on my right,

bids £161,000.

It's against you. 162, back in.

163. 164.

No?

Back to you, bid's with you, £163,000, it's against you.

On my right. 163, for the first...

164, back in. 165.

166.

Said that last time! 165, for the first...

165, for the second...

165... 166, new place, more competition.

167, nearly. 168.

169. 170.

171. 172.

172. 173.

174.

175.

176.

176?

Yes? No?

If not, 175, for the first...

175, for the second...

175, for the third and final time. Are we all done?

Sold, 175.

That final bid of £175,000 was made by Charlie.

# I'm walking down the highway

# Seen this cat his name was Charlie. #

Charlie's a part-time developer,

with around 13 rental properties in his portfolio, but he's bought

and sold many others, and runs his own estate agents business.

With all this experience, surely he's got an eye for a bargain?

Great to meet you today, thank you so much for coming along.

-Congratulations.

-Yeah, I think, good news.

Always good news to snap one up at auction.

So, what's the story behind you wanting to buy this flat?

It's an area I know well, good housing stock, purpose-built,

period maisonettes, you have your own front door, private garden.

They always tend to sell fairly well on the open market.

It's a banker, basically, around here.

Charlie, the layout, as it stands, is diabolical.

It really doesn't work, does it?

How are you going to change it? What's your vision for this property?

It's difficult. As it is now, we'll make a two-bed.

It will be a compact two-bed, but nonetheless, a two-bed.

One-bed, there's no point at all.

So we'll get a two-bed,

there's a few different options of different layouts,

and then if we did the loft, you'd get a three-bed,

probably more suitable for a young family.

Will you go up into the loft space and convert it,

because lots of the other properties along this road have done that.

It's worth doing. You look at the area, front to back, of the house,

it's quite a large area and because we have the freehold to the building,

we don't have to be paying out to the freeholder to use that space,

which you would normally have to do.

Which could be another 13,000, so we save money there, too.

Charlie's got a team of builders ready to carry out the work,

and is allowing between two and four months to do it,

depending on planning permission.

More crucial than the loft conversion,

what's he going to do about putting in a bathroom?

# Splish, splash I was taking a bath

# Long about a Saturday night. #

What am I going to do with the bathroom? We'll move the bathroom.

It won't sell in the kitchen, people don't like it,

so we'll either steal a bit of a room to put the bathroom,

that's the only option we have, we've got to put one in.

You look at this front room, there's enough space.

You could break this up, have a bathroom here

or take the chimney breast out of the room towards the back.

There's space, it's too big at the moment. The rooms need to be smaller.

Charlie's got choices to make when it comes to the layout,

but one decision he has made

is to put the flat back on the resale market as soon as possible.

His budget is £32,000, which includes converting the loft.

On top of that, he's going to install central heating,

and rewire the whole flat, as well as completely redecorating it.

What sort of profit do you hope to make out of this?

Ideally, somewhere around £30,000, around that level.

-And if you do go into the loft?

-Probably looking at 50.

So it's worth it for you to get the figures right and go up into the loft?

It's just that you're paying interest on the time you're waiting.

So, is this something you love to do,

or you're doing it because you're earning lots of money at the moment?

I love it, hopefully it gives me an early retirement,

then you can go and sit on a boat somewhere!

That's the motivation, not to have to go to work every day.

It's flexible, but you've got to be expected to be called at 12 o'clock at night,

three in the morning because something's smashed, or something's on fire,

or someone's shouting at someone, you know,

that's the risk, it's not 9-to-5.

It's been great meeting you.

Good luck, I don't think you'll need it, but good luck.

-No problem.

-Thank you.

-Cheers.

I think Charlie has done all the right things here.

He's bought in an area that he's familiar with,

and he intends to add value by extending into the loft.

But then he is an estate agent,

and he should know what he's doing when it comes to property!

So, will he get planning permission,

and will he move that bath out of the kitchen?

Well, let's hope so.

You can find out how he gets on later on in the programme.

Coming up, I try to look on the positive side at this house in Salford.

At least the bathroom is a good size,

but you can't have everything, can you?

In London, Charlie may be passionate about property,

but there's no place for romance in this two-bedroom flat.

I think the best advice is

don't fall in love with a property. It's a business.

But first, let's find out what junior property developer Nick has been up to.

We spent about a day getting all the wallpaper off.

Let's return to Shrivenham in Oxfordshire,

where I visited this two-bed bungalow.

Especially in the kitchen, with its retro '60's style,

the dated decoration was a blast from the past,

but the bungalow's future looked bright.

Experienced property developer Bill bought it for £226,000.

He planned to build an extension,

and bring this retro pad bang up-to-date.

I think it's kind of '60s, it's a bit tired and dated,

so we're going to extend off the back by about three metres,

and then new central heating, double glazing, brand-new kitchen.

-Wow! So, bing, bang, boom.

-It is, absolutely.

Bing, bang, boom, it may be,

but it certainly wouldn't be bish, bash, bosh.

Bill was to be helped by his 14-year-old son, Nick,

who would be investing £200 of his own cash in this renovation.

So, two months later, we're back.

# He's a chip off the old block. #

Let's see how this father and son developing duo got on.

# He's a chip off the old block. #

Work's ongoing, but it's plain to see this has been no rush job.

The walls are newly plastered, and a modern fireplace has been fitted.

There's also a new central heating system

and replacement windows throughout.

It certainly seems the boys have been busy.

Obviously, we are about 95 per cent finished at this point.

We've refurbed the existing building,

rewired, central heating.

No surface unchanged, at the end of the day.

The kitchen has been transformed into a lovely dining area

by the addition of an extension, with French doors

leading out onto the still-ample back garden.

The quirky coloured units have been replaced,

and this kitchen now feels like it could be the heart of a family home.

The toilet has been moved into the bathroom to allow access

to the other side of the extension, the new third bedroom.

Well, this used to be the loo,

but now we've made it into a corridor,

and beyond we have the master bedroom.

And of course, patio doors, nice little view of the garden.

The extension was built within permitted development rules.

That meant, although building regulations need to be complied with,

Bill didn't get caught up in the long, drawn-out process

of applying for planning permission.

The extension is all done within permitted rights,

so it's been very straightforward, and that's why we did it.

We wouldn't have done it had we waited for planning.

That's a two-month process, extra fees,

and with the state of the housing market,

that extra time could cost in more ways than just the price itself,

the market could fall.

In the original second bedroom,

the window has been moved from the rear wall,

which now adjoins the wall of the extension on the side.

What was Nick's role during the renovations?

Well, in this hallway was probably where I did the most work.

I came here with a friend, and we had this steamer,

and we spent about a day getting all the wallpaper off.

I also did some work in the bathrooms,

where it was a bit harder because it's all waterproof,

so the steam couldn't get through it,

you had to score it to make the steam go through it,

so that's a good tip.

# He's a chip off the old block. #

Nick's dad, Bill's original schedule was six weeks,

but he also had other renovations on,

which led to delays in completing the bungalow.

The schedule has drifted on about a couple of weeks,

mainly because I robbed the builders to do work elsewhere.

There is a few bits left to do, a bit of second fix carpentry,

bit of wiring, painting and, of course, the carpets.

Bill originally purchased this bungalow as a rental investment,

and planned to spend £50,000 on the renovation.

He changed his plan after discovering that a similar property

on the street sold for £360,000, so he now plans to sell.

He upped the spec on the finish, and has now spent £75,000,

taking his total outlay to around £301,000.

We invited two local estate agents to see if Bill

and Nick's bungalow could match that sell-on price.

What does the estate agent who viewed the property previously

think of the extension?

Great. The change has been massive.

The extension at the back of the house

adds a new dimension to the size of the property.

Now he's got to make sure it's decorated really well,

carpeted, the right colours, the right tiles, the right floors.

Everything he does now will add money.

I generally think that the details have to be pretty much perfect.

Bearing in mind the location of the property,

it'll be demanding, in my opinion,

premium price, so therefore, the finish has to be perfect, really.

Personally, I think the owner here has actually maximised

the value that the property's potentially worth.

The estate agents believe the property could achieve

between £900 and £1,000 per calendar month in the buoyant rental market.

But Bill wants to sell, and achieve around the £360,000

that a similar property on the street went for.

Let's hear some valuations, bearing in mind

Bill and Nick's total outlay so far is £301,000.

I would actually value this property in the region of £360,000.

I'd put this on the market currently for £385,000.

Oh, that's pretty good, because I think I was banking on 350.

So, yeah, bit more than that, ideal.

So, young Nick should make a profit on his £200 investment.

What's he going to do with his share?

I'll keep reinvesting it, and when I've got about 3,000, 4,000,

I'm going to put the money into a garage, and then rent it out,

so I get ten per cent back every year,

and then go on like that.

Well, I'm sure we'll be featuring this young man

on future programmes, handling his very own project.

I'm in a suburb of Salford called Little Hulton,

and this is the property I'm here to see.

It had a guide price of £32,000.

It's a two-bed terrace. It looks kind of run down from the outside,

but the area has got a lot going for it.

It's on one of the main arteries into the city centre,

good local primary schools, so in terms of rental, big tick.

So, what have we got?

A mess!

Actually, it looks like somebody has started

some kind of restoration programme, they just didn't finish it!

So, let's try and ignore what it looks like,

and see what the structure of the building is.

Nice that there's a porch,

so you're not straight off the pavement into the front room.

Open fire, good news, and I like the position of the staircase.

But already, I'm thinking quite a lot of work to do on this one.

As for the kitchen...

I say kitchen, but there are no units.

But you'd probably have had to rip them out

and throw them away anyway, so this has saved you the bother.

There's always a positive, and you know me,

I always like to look on the bright side!

# Cos I'm Mr Brightside. #

Let's inspect the upstairs.

What on earth is going on there?

You've got this landing, which is basically a corridor down this way,

and then at the end, this complete waste of space!

Well, it's quirky. I've got no idea at all what that's about.

Not to worry. Very odd landing.

At least the bathroom,

stripped of absolutely everything though it may be, is a good size.

You can't have everything, can you?

# I want it all

# I want it all

# I want it all

# And I want it now. #

The bathroom might not be so sweet, given that it has no suite,

but, staying in positive mode, let's call it a blank canvas.

The two bedrooms are both a fair size and, despite the graffiti,

the plasterwork is in a better state than downstairs,

and there's a little bonus, as the UPVC double glazed windows

are also in reasonable condition, despite being covered in paint.

Well, finally I find the rear of the property.

No, it's there, really, you just have to look closely!

All in all, it's not too bad. No, really, it's not.

If the house was snapped up for around the guide price of £32,000,

there is potential for profit, so let's hope someone

with a heart will apply some TLC to this bargain house in a big mess.

# Give a little love

# Give a little love

# Go on and do it

# Go! You've got to give a little love! #

Meanwhile, what's the best option?

Renovate and rent out, or do up and sell on?

I asked a local estate agent for his opinion.

If I owned this property, I would make it tenantable,

in as much as I would fit a new kitchen, new bathroom,

re-carpet throughout, redecorate,

and I would definitely put it on the rental market,

and I wouldn't expect it to be vacant for very long.

Once renovated, what could the property achieve if rented out?

The rental market in the area is strong.

Achievable rent would be between £400 and £450 per calendar month.

And sell-on value?

If the property was renovated, it would achieve a sale price

of around £60,000 - £65,000.

There's the potential for profit in this property,

and though it is in a mess, an investor could clean up.

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

25,000.

It's got to be bought, £25,000. 25 bid, you've seen the value.

25,000, 26.

26,000, then. 27.

27. 28. 29. 30.

31.

Yep, 31,000. 31 and a half.

No, you're shaking your head.

31,000, it's in the market.

31,000, the first time.

31,000, for the second and final time.

It's gone quiet in here. Third and final time at 31,000.

Builder Paul made the successful bid of £31,000,

bidding on behalf of his friend, Ian.

Until two months ago, Ian was an operations manager

for a cleaning company, but is now a novice property developer.

That's just one step towards a big change of lifestyle.

I met Ian at his new property to find out more.

-Good to meet you.

-Good to meet you too.

-Congratulations.

So, tell me why you wanted to buy this place.

Um, it was cheap!

-Now, you weren't at the auction?

-No, no.

My friend Paul was there. He was on the phone to me.

I actually thought he'd just given up talking to me,

but he was actually making bids at the time,

and then, all of a sudden, he said "You've just bought a house!"

So that was quite a good feeling, actually.

-And the idea is you bought it to do what with it?

-To lease it out.

We've already got someone, possibly, to move in once work's been done.

-What, already?

-Yep.

-Wow!

-Yeah, hopefully, touch wood!

So, tell me a bit more about you.

Well, it's my first property that I've bought.

-What, completely? Even one to live in yourself?

-Yep, yep.

-I'm actually moving out to Brazil in a month.

-Brazil?

-Yeah, Brazil.

I thought I'd get a few properties before I get out there,

so I've got a bit of an income while I'm there, and then I'll go and sit on the beach!

Right. Tell me more about the Brazil idea.

Me and a few friends have chipped in to buy a backpackers' hostel.

A friend of mine built it six years ago,

and there's me and a couple of friends

moving out there to run it over the summer.

So we're going to go out there, and see how it goes.

Oh, my word! Whereabouts?

A place called Itacare, which is five hours south of Salvador in the state of Bahia.

Right. Is that a popular backpacker spot?

Yeah, it's a surf destination.

It's got 50 kilometres of surf beaches,

carnival, and a whole lot of beach parties.

Wow!

That was the selling point for me, too!

So, Ian's off to soak up the sun on the beaches of Brazil.

But before that, he has to get this property ready to let out

in not quite so sunny Salford.

He'll rely on builder Paul to do the work for him.

So what prompted this sudden change?

Um, unfortunately my father died, and he'd, luckily,

left us with a little bit of cash to invest in something,

and we've looked at properties within £30,000 - £50,000,

and this one came up, and here we are now.

-Are you from round here?

-No, I'm from London.

-Right.

But my friend Paul, who is the builder of this project,

he lives in Manchester, and he'll be doing all the work on the house.

And you're going to be controlling it from London?

Yeah, or Brazil!

With the internet these days, you could probably rig up a camera

-to monitor what it looks like!

-Exactly.

So I'll go back to London, Paul's going to take care of it,

and then hopefully we can have it turned around

-within three or four weeks from start to finish.

-Gosh, quite quick.

Yeah, well, I'm moving out to Brazil in four weeks,

so hopefully we can get it done before that,

so I can actually see the finished product.

-Wow!

-Yeah.

It's a quick turnaround, you're not the first person to say that!

But I've got full faith in Paul, he's a good builder,

and he's got a good team behind him, so hopefully we can get it all done.

You can always bribe him that if he does a good job, he can come out and stay at your hostel!

-Half-price rent!

-Oh, yeah, half-price, sorry, not free!

There's no time to waste if Ian's going to check out the finished state of his new investment

before leaving for Brazil.

Tell me what you're going to do to sort the place out.

Well, as you can probably see, it's been pretty much stripped out already,

there's obviously no kitchen in here, there's no bathroom,

a lot of the plaster's been taken down.

So, we're going to get some new windows where the cracked windows are,

new kitchen, new bathroom, plaster, decorate.

Wood or laminate flooring throughout the ground level, then carpet upstairs,

and that's hopefully as simple as it's going to be.

So, what's the budget for the work?

We are looking at around £10,000,

give or take.

Hopefully less, but we've got a budget of 10,000 for now.

And it's going to need central heating, isn't it?

It's going to need central heating, yeah,

so that's going to be one of the bigger expenses,

and the electrical work is going to need a fair overhaul, so they're our two biggest expenses, really.

The kitchen and bathroom, there's a lot of deals with them in the UK

at the moment, so we're going to get some pretty good deals with that,

and again, with carpet, painting, pretty cheap,

so the biggest expense is the central heating and electrical.

Well, listen, congratulations, it's a great story, and good luck in Brazil.

We'll see you before you leave and see how you got on.

-Maybe we'll see you in Brazil sometime, too!

-Yeah, definitely. Come visit!

So, the clock is ticking for Ian. The beaches of Brazil are beckoning.

Before he leaves, though, he's got a lot of work to do.

Find out how he gets on later in the show.

It's been a while now since we last saw those properties.

Has any work been done, or do they look exactly the same?

Let's find out.

Now we're back in London,

where this mid-terrace two-bedroom flat sold for £175,000 at auction.

Charlie bought it to add to the many in his property portfolio.

He was certainly enjoying his busy career as an estate agent and developer.

Hopefully it gives you an early retirement,

and you can go and sit on a boat somewhere!

That's the motivation, not to have to go to work every day.

# But this here's a full-time job. #

Four months on, we've caught up with Charlie back at the property.

He may not quite have retired yet, but he's certainly been busy.

The property, before, was a little bit disorganised.

We had a kitchen and a bathroom together, very unorthodox,

and then, strangely enough, a massive bedroom across the front of the property,

and then a very small reception, so it was not a good layout for the 21st century.

It definitely wasn't, but with the second bedroom to play with and some space where the tiny toilet was,

next to the kitchen, this flat was more than ready for its first bathroom,

and indeed, to be dragged into the 21st century.

# 21st Century kid. #

Cleverly, Charlie's knocked the toilet through into the kitchen

and created a spacious, modern bathroom,

so finally, the bath has a much more appropriate setting.

The former reception room has been blocked off at one end,

and is now a bedroom.

The second bedroom has been carpeted and decorated in light and neutral colours,

but where on earth is the kitchen?

Well, what was the master bedroom

is now a fabulous kitchen-dining-lounge area.

What a transformation! Charlie's turned this house back to front.

We have condensed this room. It was a bedroom, and now we've put everything together.

We've got a kitchen and a living room.

I think, if you're clever with the furniture,

it makes a really good, modern living-kitchen-entertaining area.

I think we've got ample workspace,

we've got the period fireplace that we've taken from the other bedroom,

and the sun beams through from the front, so a happy place to be.

Somewhere else that's a happy place to be is

soaking in the tub in the new bathroom at the back.

It was essential to put the bathroom here.

We were toying around with various layouts.

This was the best option, unless we went into the loft, which we haven't done.

Charlie decided against extending into the loft,

as the financial returns were not worth the extra expenditure,

so he reduced his original budget of 32,000 to 13,000.

So, has he saved a pretty penny, or spent a handsome sum?

I think, probably, now we've spent just under 20.

I think, probably, the fact that we've had to dip in and then

come back again has cost more, and I think the contracts I agreed

with the builders was more for the labour than originally I planned.

But I'm pretty happy with how it's worked out.

His labour costs may have been higher, and there are still some

finishing touches to do, but Charlie doesn't get emotionally attached

to his properties, and is happy to save money on fixtures and fittings.

It's very easy, on finishings, to go and buy a more expensive kitchen that'll cost you £1500 more,

you spend another £500 on tiles, it just stacks up,

so I think the best advice is never fall in love with a property.

It's a business, it's not somewhere you're going to lie down and chill out on.

# And I'll be taking care of business

# Every day

# Taking care of business

# Every way

# I've been taking care of business

# It's all mine

# Taking care of business

# And working overtime

# Work out! #

So, there may not be much passion in this place, but is there profit?

We asked along two local property experts, to give us their thoughts.

My first impressions of the property when you walk in is that it's very light and airy,

and overall, seems like it's going to be nicely finished.

My first impression is that it's really changed.

The layout is, obviously, quite radically different

to how it was before,

and although it's a couple of days away from being ready, it's looking really good.

The layout suits the nature of the property.

Having this as a two-bedroom first floor garden flat very much

suits the needs of those that are buying in this area,

so I think it works very well.

I think what's interesting is that it's certainly above average

for the local vicinity.

Would I change the finish as it currently stands?

No, I think it's very suitable for this type of property.

Once the refurbishment's complete,

what could the flat earn on the rental market?

This flat would rent for approximately £1,200 per calendar month.

The rental value for this property, you'd be looking at £1,150 per calendar month.

On a rental side of things, we actually do more rentals,

So I'd actually say we could get probably 1,200, 1,250.

I think that's a realistic rental value.

They are two doubles. I think, with furniture,

people will be able to appreciate that they are good-sized doubles.

Charlie paid £175,000 at auction,

and has spent just under £20,000 on the work,

so with his total outlay of £195,000,

how much could he make if he resold it?

I would look to selling this property at £245,000.

This flat would sell for in the region of £250,000.

My goodness! Unbelievable!

I think, in my opinion, that's toppy.

My thinking was 210 to 215.

That's a long way, a long way further than... Yeah, that's a lot!

Yes, that's good.

No wonder he's smiling, because with those valuations

he could be looking at a £50,000-£55,000 pre-tax profit!

Has Charlie enjoyed this renovation?

This property, I've really enjoyed the way it's worked out.

We spent a lot of time working out the configurations, how we'd do it.

I think the conclusion is fabulous.

We really have ended up with a really good two-bedroom flat.

Internal staircase to a garden, yep, really happy.

Let's return to the Salford suburb of Little Hulton,

and this two-bed terrace, which was in a big mess.

The property was purchased for £31,000 as a rental investment by Ian.

He'd given up his 9-to-5 office job to begin a career as a developer,

and as I found out, that wasn't the only life-changing decision Ian had made.

-I'm actually moving out to Brazil in a month.

-Brazil?

-Yeah, Brazil.

Me and a few friends have chipped in to buy a backpackers' hostel.

I thought I'd get couple of properties before I get out there,

just so that I've got an income while I'm there,

-and then I'm going to go and sit on the beach!

-Wow!

With his plane to paradise only a month away, Ian was keen to

get flying on the renovations, so only three weeks later, we're back.

Well, not much change outside.

There are a couple of new windows,

but the exterior paintwork could do with being refreshed.

Let's see inside.

The living room is neat and tidy, the plaster

and woodwork have been repaired, and a new carpet fitted.

The once derelict and decrepit room next door

is now a spick and span new kitchen.

There is still some work to be completed,

but it's impressive going for just three weeks.

The kitchen's been a complete transformation.

Before, there was nothing in here, now it's got units, shelves,

cupboards, tiles, an extractor fan will be going up.

We've got the sink in, we've got some new windows.

It's my favourite room, it's a spacious kitchen.

I can imagine a nice table here, having friends over, cooking,

drinking, and just a nice, social room.

Ian's based in London,

and has relied on his builder friend Paul, who lives in Manchester, to do

the work for him, while Ian prepares for his Brazilian adventure!

Paul was the builder for me.

We've been friends for about 13 years, he's been in charge while I've been back in London.

He's had a lot on his plate, obviously, we've had a very

short deadline on this property, but he's only days away, only days!

I'm moving out to Brazil very soon, so he's going to be the man in the area who can deal with any problems

that the property's going to have.

He's fully responsible for the refurb,

he was even responsible for the colour of paint, colour of carpet,

the kitchen, the bathroom.

I didn't make any decisions on that, it's all in his hands.

Paul sounds like the perfect pal.

Not only has he carried out all the renovations,

he'll also take care of the property when Ian's in Brazil.

You can't complain about that. Or can you?

He just asks for money from me too much!

The cracking pace of Paul's work continues upstairs in the bathroom,

where a new suite's been fitted.

Ian's turned his back on his 9-to-5 office job,

and is striding forward in his new career as a developer.

In fact, he's already added to his property portfolio.

Since the work's been going on, we've put an offer in on the property next door

which has been accepted, and hopefully that will be completed in the next couple of weeks,

so we can start work as soon as possible next door.

He's certainly a quick mover,

and has already found a tenant for this house.

As soon as the sign went up, the lady was knocking on the door, offering to move in straight away,

so we've been very, very lucky in that sense, and hopefully

it will be as easy next door, as well.

The bedrooms have undergone cosmetic refurbishment,

and now look bright and fresh.

Ian's financed his property investments

and his move to Brazil with money he inherited

after his father passed away.

This sad experience spurred him on to change his life and live it to the full.

I'm hoping my dad's going to be proud.

He's probably watching down now, wondering why it's not finished,

and why I'm moving out to Brazil for six months!

However, I think he would be proud, so that makes it all a lot better.

Ian will meet his four-week schedule,

but what about his £10,000 budget, bearing in mind the new bathroom

and kitchen, plus newly installed boiler and central heating system?

The initial budget was £10,000.

We've actually come in under, at 7,300-ish, give or take.

However, we did incur a few extra costs from the auction house that was unexpected.

We had to pay for the solicitors' fees from their side,

from the seller's side, which was a little bit unexpected.

However, that's actually come into the £10,000 budget, so we're actually spot on.

On schedule and on budget.

Well done to Paul and Ian, whose total spend will be £41,000.

We asked two local estate agents

for their opinions on the finished result.

My first impressions of the property is that, on entry, the living room's spacious, bright and airy.

The finish is quite a good standard.

If I was to change anything, I think it would probably be

a more neutral decor, more neutral colours,

and probably a brighter carpet!

The standard of finish looks to be quite good,

I think, in keeping with the kind of property it is.

You could spend a lot more money here,

but remember, it is a two-bedroom terraced property.

Bearing in mind Ian's total outlay of £41,000,

how much could this property make, if sold?

If I was to put this property on the market, it would be a value of £65,000.

Once the refurbishment's been completed,

I would put this property on the market at around about £65,000.

Remember, Ian has already got a tenant lined up to rent this

property, so how much do the estate agents believe it should rent for?

If I was to rent the property, I would place it on the market

for between £425-£450 per calendar month.

This property, once completed, would rent, I believe, quite easily,

for about £450 per calendar month, maybe a little more.

Ian's tenant will be paying a lower figure of £400 per calendar month,

which will still give him a very healthy yield indeed,

of over 11 percent.

But Ian has other matters on his mind, like Brazilian beaches and tropical cocktails!

# Today I'm moving on

# Tomorrow I'll be gone. #

It's seven days today that me and my friends are heading out to Brazil, and I can't wait!

# To the sun

# Into the sun. #

What's Ian looking forward to the most?

Drinking cocktails on the beach!

And a week later, that's just exactly what he was doing!

Well, that's it for now.

-Join us next time for more auction ups and downs.

-That's right.

From bungalows to basements to building sites,

it's all here on Homes Under The Hammer!

-We'll see you next time.

-Goodbye.

-Goodbye.

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