0:00:02 > 0:00:04Hello! Lucy and I are real property enthusiasts.
0:00:04 > 0:00:09One reason is that, over the years, it's been a rock-solid investment,
0:00:09 > 0:00:15- despite the recent downturn. - So where can you find potentially great properties to buy?- At auction!
0:00:40 > 0:00:44Whether you're buying property as an investment or as somewhere to live,
0:00:44 > 0:00:47you still need to make sure you're going to get a good deal.
0:00:47 > 0:00:52The question is, did today's buyers manage that? Here's what they bought.
0:00:54 > 0:00:58'Let's hope this semi in Telford, Shropshire, ends as well as it begins.'
0:00:58 > 0:01:02All in all, a real good start.
0:01:02 > 0:01:05'I detect a problem with this property in Kent.'
0:01:05 > 0:01:09When I see cheeky pieces of cladding nailed to the wall like this,
0:01:09 > 0:01:12I often wonder, what is that hiding?
0:01:12 > 0:01:19'And in Morden, Surrey, the best buys aren't always the most attractive houses.'
0:01:19 > 0:01:23Sometimes it's the unseeded properties that turn out to be winners.
0:01:24 > 0:01:29'All these properties have been sold at auction and we find out who bought them and what they paid
0:01:29 > 0:01:32- 'when they went under the hammer.' - Well done.
0:01:36 > 0:01:41'A visit to Ironbridge in Shropshire gives a glimpse of a bygone age.'
0:01:48 > 0:01:52Well, for tourists in Victorian times, Ironbridge in Shropshire
0:01:52 > 0:01:54would've been a pretty smoggy place to visit,
0:01:54 > 0:01:57with factories belting fumes all over the place.
0:01:57 > 0:02:00But they came to marvel at the iron bridge itself
0:02:00 > 0:02:03which changed the face of construction techniques the world over.
0:02:03 > 0:02:09Nowadays, the gorge has reclaimed its green and there are industrial museums
0:02:09 > 0:02:17rather than the industry itself. It's like stepping back in time, only a much greener place to visit.
0:02:18 > 0:02:21'The iron bridge was truly revolutionary,
0:02:21 > 0:02:24'the first one made of cast iron.
0:02:24 > 0:02:28'The whole area was busy buzzing due to the industrial revolution
0:02:28 > 0:02:31'and one of the leading lights at the time was Thomas Telford.
0:02:31 > 0:02:36'Just a few miles down the road is the town that bears his name,
0:02:36 > 0:02:39'but there is certainly nothing 18th century about this place.'
0:02:39 > 0:02:44This whole area was basically constructed in the 1960s and 1970s
0:02:44 > 0:02:46to revive a former coal-mining area,
0:02:46 > 0:02:50and the property I'm here to see was probably built around that time.
0:02:50 > 0:02:54A three-bed semi-detached at a guide price of 65,000 quid. Let's take a look.
0:02:56 > 0:03:04'The estate it sits on seems reasonable and it's got welcome patches of greenery.
0:03:04 > 0:03:07'And there's a park and play area nearby, too.
0:03:07 > 0:03:13'So, £65,000 as a guide price for a three-bed semi? That seems pretty good value to me.'
0:03:13 > 0:03:20So, what have we got? A reasonable size entrance hall with some useful storage. Stairs up to the bedrooms.
0:03:20 > 0:03:22Nice size front living room. We like that.
0:03:22 > 0:03:28It may look like it's got double glazing, but it's just single, so you'd maybe want to replace that.
0:03:28 > 0:03:31But here's a room I really like. It's a kitchen-cum-dining area.
0:03:31 > 0:03:35A really useful family living space.
0:03:35 > 0:03:38If this wasn't here, I'd suggest that you create something like this,
0:03:38 > 0:03:45so I'm delighted that it already exists. I would consider some really nice doors out onto the back garden,
0:03:45 > 0:03:50cos you've got open aspect, which is really pleasant. Shame that somebody's broken the window.
0:03:50 > 0:03:57Maybe a bit of vandalism. And an odd place for the boiler. But, all in all, a real good start.
0:03:57 > 0:04:01'It's a bit rough and ready and that broken window is hardly a welcoming feature,
0:04:01 > 0:04:04'but I think there's plenty of potential here.
0:04:04 > 0:04:08'The kitchen does need a lot of attention, though.
0:04:08 > 0:04:14'But there's not much wrong with the front room that a thorough makeover couldn't sort out.
0:04:15 > 0:04:21'Upstairs, the three bedrooms range from a decent-sized double to a rather small single.
0:04:22 > 0:04:25'But the bathroom's OK.
0:04:25 > 0:04:28'Add to that a good-sized if overgrown garden,
0:04:28 > 0:04:33'and I can't help feeling that, at that auction guide price of £65,000,
0:04:33 > 0:04:37'this could actually make a very solid rental property.'
0:04:37 > 0:04:41Put a bit of money into this place, you could rent it out for around £550 a month.
0:04:41 > 0:04:45That's a ten percent yield.
0:04:45 > 0:04:50Oh, yes, ugly ducklings sometimes do turn into beautiful swans.
0:04:50 > 0:04:52# You're beautiful
0:04:52 > 0:04:54# You're beautiful
0:04:55 > 0:04:59# You're beautiful, it's true
0:04:59 > 0:05:04'So, with my property developing hat on, I see this in a new light.
0:05:04 > 0:05:09'Bought for the right price as a long-term investment, this could bring in a pretty penny.
0:05:09 > 0:05:13'What does a local estate agent make of this place?'
0:05:15 > 0:05:19First impressions, it does need quite a lot of work doing to it.
0:05:19 > 0:05:24I would suggest a brand new kitchen. You probably need to put new windows in.
0:05:24 > 0:05:28They are PVC, but they're all single glazed.
0:05:28 > 0:05:32It needs a brand new fence at the back as well as some landscaping,
0:05:32 > 0:05:36putting a driveway at the front, many properties have done that,
0:05:36 > 0:05:38and that would make it attractive,
0:05:38 > 0:05:40particularly if it was on the open market.
0:05:40 > 0:05:47'Once done up, how would this house, that was guided at £65,000, fair on the resale market?'
0:05:50 > 0:05:56For the property in its current condition, I would suggest an estimate price of £70,000.
0:05:56 > 0:06:02Once the works have all been completed, potentially you could see some uplift to £90,000 to £95,000.
0:06:02 > 0:06:07'That does mean that, potentially, a resale would provide some return.
0:06:07 > 0:06:10'But with a possible £550 a month rental income,
0:06:10 > 0:06:14'the real money is definitely in the lettings market.'
0:06:14 > 0:06:18Well, this house may not have any Victorian charm,
0:06:18 > 0:06:22but it does have the potential to deliver a return that any business person would be proud of.
0:06:22 > 0:06:25Let's see who spotted the opportunity at the auction.
0:06:28 > 0:06:32Lot number 30 is a three-bedroom semi-detached house,
0:06:32 > 0:06:38requires modernising and has gardens to front and rear. What shall we say for lot 30?
0:06:38 > 0:06:41Can we can 50 to get it going? 50 can I say?
0:06:41 > 0:06:4550 seated. Thank you. At 50,000. At 50,000.
0:06:45 > 0:06:4955 can I say now? At £50,000. 55 can I say?
0:06:49 > 0:06:52£55,000.
0:06:52 > 0:06:5460? £60,000.
0:06:54 > 0:06:5965 is it? At £60,000. 65.
0:06:59 > 0:07:02At 65, then, for the first time.
0:07:03 > 0:07:0665 and a half. 66.
0:07:06 > 0:07:0966 and a half. 67.
0:07:09 > 0:07:1267 and a half. 68.
0:07:12 > 0:07:14Do you want to go 69? 69.
0:07:14 > 0:07:1770? 70. 71?
0:07:18 > 0:07:2271. 72.
0:07:22 > 0:07:26Shaking his head. With you, still, at £72,000.
0:07:26 > 0:07:29Lot number 30. Bid's at 72. I'm selling at 72.
0:07:29 > 0:07:3172 for the first time.
0:07:31 > 0:07:35At 72 for the second time.
0:07:35 > 0:07:38Third and final time. All done?
0:07:38 > 0:07:41Your lot, sir. Well done.
0:07:41 > 0:07:46'And the new owner, hiding away from us but not the auctioneer, is Daryl.
0:07:46 > 0:07:50'He paid £72,000 for the three-bed semi in Telford.'
0:07:50 > 0:07:54- Daryl, lovely to meet you. - Thank you. - Why did you want to buy this place?
0:07:54 > 0:08:00I just thought it was a reasonable buy and I'm trying to make a little bit of money, hopefully.
0:08:00 > 0:08:03- Tell me a bit more about you? - I'm a builder.
0:08:03 > 0:08:07I've done lots of renovation and new builds for other people, clients,
0:08:07 > 0:08:10and things for myself in the past and lived in them.
0:08:10 > 0:08:16Right. So what made you make the leap into doing more of an investment property?
0:08:16 > 0:08:21I just had a little bit of money that was sitting in the bank and it was doing no good,
0:08:21 > 0:08:27so I decided to do something that I knew somebody else had done and they said it's pretty easy to do,
0:08:27 > 0:08:29so I'll try and have a go at it.
0:08:29 > 0:08:33Bit of a leap of faith? Are you a bit nervous or not?
0:08:33 > 0:08:38I wouldn't say I was nervous, but it's a leap of faith a little bit, but I don't think I'm going to lose.
0:08:38 > 0:08:41# We gotta keep the faith
0:08:42 > 0:08:47'Daryl's been in the building trade for 20 years, so he's not short on experience.
0:08:47 > 0:08:52'But it's still quite a big step to go it alone. It's one thing when it's somebody else's money,
0:08:52 > 0:08:54'quite another if it's your own.'
0:08:54 > 0:08:57So why did you pick this particular house?
0:08:57 > 0:09:01Because, basically, it was one of five that I kind of liked
0:09:01 > 0:09:04and all the others were too high.
0:09:04 > 0:09:08And by the time this one came along, I think everybody had kind of spent up
0:09:08 > 0:09:14and it was left at a level that I could afford, so I snapped it up.
0:09:14 > 0:09:19- Had you seen inside before you bought it? - Only through the windows.- Why?
0:09:19 > 0:09:24Because we couldn't get a key. And to peer through the windows was kind of enough.
0:09:24 > 0:09:28I couldn't really see anything drastic.
0:09:28 > 0:09:31- But you are a builder.- I am. - So you know what you're looking for.
0:09:31 > 0:09:34- Yeah.- Not a good thing for most people to do.
0:09:34 > 0:09:38- Probably not. - So tell me exactly what you are going to do to sort this place out.
0:09:38 > 0:09:42I think I'm going to over-board the ceilings and skim them,
0:09:42 > 0:09:45cos they're pretty diabolical.
0:09:45 > 0:09:49Maybe skim the walls. Take the skirtings off, take the doors off, renew them.
0:09:49 > 0:09:56New kitchen, new bathroom suite, insulate the loft, do the garden, tidy it up, hopefully sell it.
0:09:56 > 0:10:00- That's the idea, to sell it on quickly?- Yeah.
0:10:00 > 0:10:03Roughly what budget have you put aside for the work?
0:10:03 > 0:10:05- Between £8,000 and £10,000.- Right.
0:10:05 > 0:10:08'Daryl will do the plastering and decorating himself,
0:10:08 > 0:10:12'but will call on his contacts in the trade to do the other jobs.
0:10:12 > 0:10:15'He hopes to turn it round in just one month.
0:10:15 > 0:10:21'I can't help wondering whether he's doing the right thing by putting it straight back on the market.'
0:10:21 > 0:10:24The big thing that struck me about the property is its rental potential.
0:10:24 > 0:10:28You could generate a reasonable return. Is that something you'd consider?
0:10:28 > 0:10:32You know, at the end of the day, if it's sitting round for 12 months, it's dead money,
0:10:32 > 0:10:37and if I don't think I can sell it within six to eight months, maybe I would look down that line,
0:10:37 > 0:10:44but it's something that I would look at as a last resort, perhaps.
0:10:44 > 0:10:46Why are you so against renting?
0:10:46 > 0:10:52I wouldn't say I'm against renting, but for myself, because I want to turn the house over and do it again.
0:10:52 > 0:10:57So if I'm renting it out, I'm kind of stuck in one position.
0:10:57 > 0:11:00- Good luck and we look forward to seeing how you get on.- Thanks.
0:11:07 > 0:11:11# Ain't nothin' goin' on but the rent
0:11:12 > 0:11:15Hm. I think Daryl might be missing a trick here.
0:11:15 > 0:11:17His profit margins are really tight,
0:11:17 > 0:11:20so why not rent it out for a year and see what happens?
0:11:20 > 0:11:25Still, he seems pretty set on selling. How is he going to get on transforming this place
0:11:25 > 0:11:29and will he change his mind? You can find out later in the show.
0:11:31 > 0:11:34'I'm in the riverside town of Chatham in Kent.
0:11:34 > 0:11:37'Although over 30 miles from the capital,
0:11:37 > 0:11:42'you can now get to London by rail in about 40 minutes on the new high-speed rail link.
0:11:42 > 0:11:46'That has really revitalised this part of the country.'
0:11:46 > 0:11:50It's too early yet to see what effect that rail link will have on house prices,
0:11:50 > 0:11:55as domestic services have been up and running only a short while, but the signs are good.
0:11:55 > 0:12:00So what was up for auction? Well, it's this three-bedroom mid-terrace house
0:12:00 > 0:12:02and it's just minutes from the station and town centre.
0:12:02 > 0:12:08And the guide price? Well, £120,000 to £125,000.
0:12:08 > 0:12:13Ooh, now, that collapsed wall there doesn't look too good.
0:12:13 > 0:12:16Signs of subsidence possibly? Not a great start.
0:12:16 > 0:12:19# Things
0:12:19 > 0:12:22# Can only get better
0:12:22 > 0:12:25# Can only get better
0:12:25 > 0:12:29Well, I was hoping, once inside, things would perk up a little,
0:12:29 > 0:12:33but sadly, no. Lots of brown and beige everywhere.
0:12:33 > 0:12:39You've got this ugly 70s door. But look. You've got some pretty little stained-glass windows here,
0:12:39 > 0:12:42so that's nice. But it's terribly dated.
0:12:42 > 0:12:47Old-fashioned carpets and wallpaper, swirly carpets in here. But you have got to look beyond that.
0:12:47 > 0:12:51A really nice size reception room here and a second reception room here
0:12:51 > 0:12:55with some flaking wallpaper at the back. I'll have to investigate that a bit further.
0:12:55 > 0:13:00But you've got some nice doors leading out to the garden. And the kitchen!
0:13:00 > 0:13:05That's quite disappointing. It's a bit small for this size of house.
0:13:05 > 0:13:09And I can smell something that smells like damp.
0:13:09 > 0:13:16# One, two, three, four, five senses working overtime
0:13:17 > 0:13:19# Trying to take this all in
0:13:19 > 0:13:23# I've got one, two, three, four, five
0:13:23 > 0:13:28When I see cheeky pieces of cladding nailed to the wall like this,
0:13:28 > 0:13:31I often wonder, what is that hiding?
0:13:31 > 0:13:35If you pull it back, you can see there are some serious damp issues.
0:13:35 > 0:13:39All the wall here is flaking away, the plaster's coming away,
0:13:39 > 0:13:44it smells and, of course, it's on the party wall, the wall you share with your next-door neighbour.
0:13:44 > 0:13:51Now, the party wall act of 1996 states that any work on a party wall that exceeds rewiring,
0:13:51 > 0:13:55hanging shelves and replastering needs a party wall notice.
0:13:55 > 0:13:58That's basically a statement of the work you need doing,
0:13:58 > 0:14:01in this case, some damp-proofing.
0:14:01 > 0:14:04That needs to be given to your neighbour, who should agree to it in writing.
0:14:04 > 0:14:09If they don't, you have to get a surveyor to draw up a party wall award
0:14:09 > 0:14:13which will set out exactly what you can do in accordance with the act.
0:14:13 > 0:14:17It's damp all right. It may even be coming from the next-door neighbour.
0:14:17 > 0:14:19Let's hope they agree to this being treated.
0:14:19 > 0:14:23'Since it's in the neighbour's interest as well as yours to get it sorted,
0:14:23 > 0:14:29'it shouldn't be too much of an issue, but it needs to be addressed and soon.'
0:14:29 > 0:14:33So, upstairs, you've got three bedrooms and a bathroom here on the end.
0:14:33 > 0:14:38At least there's a white bathroom suite, so with a bit of decoration, you could jazz that up a little bit.
0:14:38 > 0:14:42This is the biggest of the three bedrooms. Really good size.
0:14:42 > 0:14:45This house would be great for a family.
0:14:45 > 0:14:50But something that always puts me off, boilers in bedrooms.
0:14:50 > 0:14:53It's quite a big boiler. I would say it's about ten years old.
0:14:53 > 0:14:57You can buy a new boiler these days which is about half the size, a combi boiler,
0:14:57 > 0:15:03stick it in the kitchen. But, in this instance, you've got to think about rerouting all this pipe work
0:15:03 > 0:15:08and that can be quite expensive. So you have got a couple of options.
0:15:08 > 0:15:14You could box this in or even think about putting it upstairs in the loft. Something to think about.
0:15:14 > 0:15:17# It ain't right, don't you know it ain't right?
0:15:17 > 0:15:20# Don't you know, it ain't right?
0:15:21 > 0:15:23Well, that's one thing up here that's not quite right.
0:15:23 > 0:15:26But what about the rest of the bedrooms?
0:15:26 > 0:15:30The smallest bedroom is pretty small, but there's another good size double.
0:15:33 > 0:15:36'The bathroom's adequate but in need of updating.
0:15:36 > 0:15:40'The outside space is great, a long garden with the bonus of a greenhouse and a shed.
0:15:40 > 0:15:44'There's also plenty of room to extend the property if you so wished.
0:15:45 > 0:15:49'Financially, there may be more that's right than wrong.
0:15:49 > 0:15:52'But what does a local estate agent think?'
0:15:54 > 0:15:57The house itself is a nice house. It's got a nice feel to it,
0:15:57 > 0:16:00it's got a nice design, but it does need upgrading.
0:16:00 > 0:16:05There is a number of issues here. There's an issue of damp, which is quite prominent,
0:16:05 > 0:16:09and I think they do seriously need to get somebody out urgently to have a look at it.
0:16:09 > 0:16:12And I think, downstairs, it needs opening up.
0:16:12 > 0:16:15It has the typical little kitchen.
0:16:15 > 0:16:19'OK, so definitely some thoughts needed on how to increase the kitchen size.
0:16:19 > 0:16:24'But, if everything were updated, how would this house, that was guided at £120,000 to £125,000,
0:16:24 > 0:16:27'do if it was put up for sale?'
0:16:27 > 0:16:33I'd be looking at around about £145,000 to £155,000 for the property.
0:16:33 > 0:16:38'So there's not a massive uplift here. Maybe rental would be the better choice.'
0:16:40 > 0:16:42If the property was put up to rent,
0:16:42 > 0:16:48then we'd be renting the property at around £675 per calendar month
0:16:48 > 0:16:51to £695 per calendar month.
0:16:51 > 0:16:55Rental figures are pretty good, but if you're looking for a quick turnaround,
0:16:55 > 0:16:58I don't think this house is the one for you.
0:16:58 > 0:17:01# It ain't right, it ain't right
0:17:01 > 0:17:06I think you'll agree, there's a handful of positives here, but also some negatives.
0:17:06 > 0:17:10The damp problems, the collapsed wall, the boiler in the bedroom.
0:17:10 > 0:17:13But also, a word of caution.
0:17:13 > 0:17:17Do your research and see what's going to make your house worth more in the long run.
0:17:17 > 0:17:22That's what I'd advise. So let's see who wanted this when it went under the hammer.
0:17:24 > 0:17:2867 we go to now, which is a vacant bay-fronted house for improvement.
0:17:28 > 0:17:34Three bedrooms, freehold, it's got vacant possession. Give me 100.
0:17:34 > 0:17:37Deal of the day. £100,000. I'm on the way.
0:17:37 > 0:17:40At 100 I've got. And 5 now do I see?
0:17:40 > 0:17:43105 I'm bid. 110 it's against you.
0:17:43 > 0:17:48110. It's in the room. 120. 130, see if you can knock him out?
0:17:48 > 0:17:51130 if you like. 130 do you want to say? 130 I've got.
0:17:51 > 0:17:55And 40. 140. And 2. And 4.
0:17:55 > 0:17:59144. 143. 144.
0:17:59 > 0:18:02143 on the left. 144 I'm looking for.
0:18:02 > 0:18:05144? Yep. And 5.
0:18:05 > 0:18:08One more. He didn't want to pay 144, you know that. You can see it.
0:18:08 > 0:18:10You're watching him like a hawk, aren't you?
0:18:10 > 0:18:14145 can I say? Just see if I'm wrong. Bid it and see if I'm wrong.
0:18:14 > 0:18:18145? I might be wrong and then he'll be 146.
0:18:18 > 0:18:21You're not going to say it? No? Definitely not?
0:18:21 > 0:18:24You're a man of resolve, aren't you? At 144, then.
0:18:24 > 0:18:27I have for the first time. 144 bid for the second time.
0:18:27 > 0:18:31At 144, it's going to be your house, sir. Third and final time.
0:18:31 > 0:18:35Yours at 144 and it's 9405. Thank you.
0:18:37 > 0:18:42'For £144,000, 19 grand above the guide price,
0:18:42 > 0:18:48'the new owners of the three-bed terraced house in Chatham are Mark and Adrian, who live locally.'
0:18:51 > 0:18:54Guys, congratulations.
0:18:54 > 0:18:56Thank you so much for coming along today.
0:18:56 > 0:18:59What was your thinking behind wanting to buy this?
0:18:59 > 0:19:04We liked this house because we thought it would appeal to families. It's a big residential area,
0:19:04 > 0:19:07served by good schools that we both know,
0:19:07 > 0:19:09so we thought it was going to be a good buy.
0:19:09 > 0:19:13You are a familiar face. We've met before on Homes Under The Hammer.
0:19:13 > 0:19:18- You bought a house in Gillingham a few years ago. - A terraced house, yep.
0:19:18 > 0:19:21- So you're obviously still property developing.- Yes.
0:19:21 > 0:19:25- And you've got a new partner now. - Yep, I've started with Mark on this one.
0:19:25 > 0:19:29We've known each other a few years and he's done a bit before,
0:19:29 > 0:19:32so we decided to join up as a team and go for it.
0:19:33 > 0:19:38'Mark has a financial background and has been a property investor for the last ten years,
0:19:38 > 0:19:41'while Adrian owns his own double-glazing company.
0:19:41 > 0:19:44'So, between them, they have a wide range of skills.
0:19:44 > 0:19:47'Mark and Adrian have known each other for nearly eight years.'
0:19:48 > 0:19:51Adrian, why did you go into business with Mark?
0:19:51 > 0:19:58Actually, Mark put the idea to me, really, cos we were talking about potentially doing another property
0:19:58 > 0:20:05and that's why we decided to join forces and perhaps make the costs a bit more equal over the project.
0:20:05 > 0:20:08What sort of different things can you both bring to the table?
0:20:08 > 0:20:12Ade has an awful lot of experience with the doors, windows,
0:20:12 > 0:20:17anything to do with the soffits, fascias, conservatories, he's the number one man.
0:20:17 > 0:20:20So my side is all the internal bits and pieces,
0:20:20 > 0:20:24so the decorating, the carpets, all those sort of contacts.
0:20:24 > 0:20:29And also we both have contacts with plumbers, electricians.
0:20:29 > 0:20:35So, with years dealing with those tradesmen, we can each bring in our own contacts,
0:20:35 > 0:20:39play them off against each other and get an even better price than we could get individually.
0:20:39 > 0:20:43I love it! That is music to my ears!
0:20:43 > 0:20:51'Well, they say there's strength in numbers and it certainly seems that Mark knows how to wheel and deal.'
0:20:51 > 0:20:54What was it that you really liked to want to buy it?
0:20:54 > 0:20:59Both of us had the same feelings about it. It's quite a nice family home.
0:20:59 > 0:21:04It's got the right look and it's a nice feel when you come in, even in this state.
0:21:04 > 0:21:10What did you think about the damp problem you have? There's a bit of subsidence outside on the wall.
0:21:10 > 0:21:15There's a few things here and there that need looking at. Didn't any of that put you off?
0:21:15 > 0:21:19A little damp on this wall here, a little bit of damp on that wall there.
0:21:19 > 0:21:21Neither of them are major problems.
0:21:21 > 0:21:25And the garden wall outside I wouldn't call a major issue at all.
0:21:25 > 0:21:29- Something that's just dropped over the years? - Yeah, we can easily fix it.
0:21:29 > 0:21:35'I guess that with all the knowledge these two bring to this property, most of the issues won't be new.
0:21:35 > 0:21:38'If they don't know how to sort it, they probably know somebody who does.
0:21:38 > 0:21:43'This experience has also taught them how much it's worth spending on renovation.'
0:21:43 > 0:21:47- What sort of budget have you got in mind to do the work? - We've looked at about £15,000
0:21:47 > 0:21:53and we've allowed a contingency of about £5,000, so hopefully we're going to come in under £20,000.
0:21:53 > 0:21:58- And what sort of kitchen and bathroom are you looking at? - The kitchen is very small,
0:21:58 > 0:22:02so it's a question of trying to utilise some of the space in this room
0:22:02 > 0:22:06and come through this wall to open up a larger area
0:22:06 > 0:22:09and make it into a kitchen-diner, a more modern, open space.
0:22:09 > 0:22:14- So you're not thinking of increasing the footprint? - Not within the budget.
0:22:14 > 0:22:18You've got a fair size garden out there. It's a shame, because this would be fantastic
0:22:18 > 0:22:23- with that bit of extra space out the back.- Yes, and it would be lovely to put a conservatory on the back,
0:22:23 > 0:22:28which we could do at a decent price, but it's a question of what is the house going to achieve
0:22:28 > 0:22:31at its maximum in the current climate?
0:22:31 > 0:22:36So we're working to improve the property, but at the same time, conscious of market prices.
0:22:36 > 0:22:42- It seems like you've got quite a bit of energy and you two are raring to go.- Yes, we'll start this afternoon.
0:22:42 > 0:22:44- Really?- Yeah.- Guys, congratulations.
0:22:44 > 0:22:49Adrian, it's great to meet you again and I'm glad you're still sticking with the properties.
0:22:49 > 0:22:52- Mark, lovely to meet you. - And you.- Thank you.
0:22:53 > 0:22:57# Yeah, it's always better when we're together
0:22:57 > 0:23:01'Well, it'll be interesting to see if two heads really are better than one.'
0:23:02 > 0:23:06The boys, between them, have a good set of skills and the tools to do the job.
0:23:06 > 0:23:11But remember, they paid £19,000 over the guide price,
0:23:11 > 0:23:14they're spending £15,000 to £20,000 on this property.
0:23:14 > 0:23:17How much of a profit are they going to be left with?
0:23:17 > 0:23:20And are they underestimating that damp problem?
0:23:20 > 0:23:24You can find out what happens later on in the programme.
0:23:25 > 0:23:31'Coming up, in Morden, Surrey, this two-bed house starts OK.'
0:23:32 > 0:23:35But then it gets a bit weird as you walk towards the kitchen.
0:23:35 > 0:23:41'Back in Chatham in Kent, we discover how this new property developing partnership works.'
0:23:41 > 0:23:45It's a little bit of me, a bit of him, a bit of me, to and fro.
0:23:46 > 0:23:50'But first, in Shropshire, Daryl's had his ups and downs
0:23:50 > 0:23:52'with his first refurbishment.'
0:23:52 > 0:23:55It's a big rollercoaster ride.
0:23:58 > 0:24:03'Ironbridge in Shropshire was at the centre of the industrial revolution
0:24:03 > 0:24:06'and symbolised the new age of civil engineering.
0:24:06 > 0:24:09'Just a few miles away is the town of Telford.
0:24:09 > 0:24:12'Built in the 60s and 70s,
0:24:12 > 0:24:16'it was named after the famous engineer, Thomas Telford.
0:24:16 > 0:24:20'It was here that local builder Daryl decided to start his own personal revolution,
0:24:20 > 0:24:25'moving from building work for other people to doing it for himself.
0:24:25 > 0:24:31'So, for £72,000, he bought this three-bed semi that seemed perfect for the rental market.
0:24:31 > 0:24:36'But for him, this purchase was all about getting in and getting out.'
0:24:36 > 0:24:40- Why are you so against renting? - I wouldn't say I'm against renting
0:24:40 > 0:24:44but, for myself, because I want to turn the house over and do it again.
0:24:44 > 0:24:48So if I'm renting it out, then I'm kind of stuck in one position.
0:24:48 > 0:24:51'Although structurally sound,
0:24:51 > 0:24:54'the house itself needed complete modernisation.
0:24:54 > 0:24:59'But, with Daryl's experience, contacts and an £8,000 to £10,000 budget,
0:24:59 > 0:25:02'he could at least potentially get the house ready quickly,
0:25:02 > 0:25:06'even if he couldn't guarantee a quick sale.
0:25:06 > 0:25:10'Just under four months later, we're back to see how it's going.
0:25:14 > 0:25:20'And it's looking good from the outside, with new off-street parking and double-glazed windows.
0:25:20 > 0:25:25'There's a new front door which has even got its own little porch.'
0:25:29 > 0:25:33I decided to do it because I just had a little bit of money in the bank
0:25:33 > 0:25:36and rather than having it sitting there and not doing anything,
0:25:36 > 0:25:40I thought maybe I could earn a bob or two doing a house up.
0:25:40 > 0:25:42'So, how is it looking inside?
0:25:44 > 0:25:49'Well, the kitchen has now been overhauled, with new units and fittings.
0:25:54 > 0:25:59'The dining space now has laminate floors and new windows,
0:25:59 > 0:26:02'although, sadly, the old boiler is still here.
0:26:05 > 0:26:08'Meanwhile, the front living room's been spruced up
0:26:08 > 0:26:12'and the fireplace reinstated with a gas fire installed.
0:26:12 > 0:26:14'So, has this worked out as well as Daryl hoped?'
0:26:17 > 0:26:20It's a big rollercoaster ride,
0:26:20 > 0:26:24trying to fit things in around the house
0:26:24 > 0:26:27and around work.
0:26:27 > 0:26:29Generally, a pain in the bum.
0:26:29 > 0:26:35'It's never easy when you have a full-time job and you're trying to renovate a property, as well.
0:26:36 > 0:26:40'And although four months have passed since our first visit,
0:26:40 > 0:26:45'Daryl and his team did do most of the work over a five-week period.
0:26:47 > 0:26:52'That's pretty impressive when you consider he's done the whole house from top to bottom.
0:26:57 > 0:27:01'It's been decorated and upgraded throughout,
0:27:01 > 0:27:05'with new electrics, plumbing and bathroom suite.
0:27:08 > 0:27:13'It's now just the back garden that needs some finishing touches.'
0:27:15 > 0:27:22The garden was a total mess. All across here was all broken concrete, so we took it up.
0:27:22 > 0:27:28And there was all rubble and there was a massive eight-foot fence that somebody had knocked together.
0:27:28 > 0:27:31We had to drop all that and we've levelled it,
0:27:31 > 0:27:34sorted it out. Another day and we'll be sorted.
0:27:34 > 0:27:38'So, there's more to do before that back garden's transformed
0:27:38 > 0:27:41'from a building site into a low-maintenance family garden.
0:27:41 > 0:27:43'But the front area's completely finished.'
0:27:43 > 0:27:49It was grass with some bricks and rubble in it and a fence to here,
0:27:49 > 0:27:56so we've took it down, the fence, dug it out and created a space for two cars, really.
0:27:56 > 0:27:58Just tidied it up a little bit, I think.
0:27:58 > 0:28:01'All in all, the house is nearly ready to go
0:28:01 > 0:28:03'and the bulk of the money has been spent.
0:28:03 > 0:28:07'So, how much has it cost to get it ready for the resale market.
0:28:08 > 0:28:12# Get ready cos here I come
0:28:12 > 0:28:19I spent nearly 12, but due to the fact that I wasn't planning on putting new windows in or doors in
0:28:19 > 0:28:25and they've kind of upped the budget, but if I hadn't put them in, I'd be on target.
0:28:25 > 0:28:31'A £12,000 spend on top of Daryl's £72,000 purchase price
0:28:31 > 0:28:34'along with costs takes his total outlay to around £90,000.
0:28:34 > 0:28:39'So, is the current market right for a quick resale?
0:28:39 > 0:28:43'What's the opinion of two local property experts?'
0:28:43 > 0:28:47The property has been done to a good standard for this type of property.
0:28:47 > 0:28:50I'm glad to see he's put the driveway at the front.
0:28:50 > 0:28:55The only thing I would say does need finishing off is the rear garden.
0:28:55 > 0:29:00You don't need to spend a fortune on it, but just basic landscaping and finish the fencing off.
0:29:03 > 0:29:07I think it's been renovated to quite a good standard.
0:29:07 > 0:29:11There are bits and pieces that could've been finished off better.
0:29:11 > 0:29:16The standard of the bathroom is very good and the kitchen's been renovated to a good standard.
0:29:16 > 0:29:21I would've replaced the boiler in the kitchen. It may have created more space, as well.
0:29:21 > 0:29:25'Daryl really wants to sell the house so he can move onto another one,
0:29:25 > 0:29:30'but what do the estate agents recommend would be best in this case?'
0:29:30 > 0:29:34In the current climate, my advice would be to probably rent this property out
0:29:34 > 0:29:38until there's a slight increase in the market to retain the maximum value.
0:29:38 > 0:29:42A lot of investors do rent them out then put them on the market afterwards
0:29:42 > 0:29:46when they're finished and things start to look a little bit more tired,
0:29:46 > 0:29:48so I'd suggest put it straight on the market.
0:29:48 > 0:29:54'So, that's a split decision. Maybe the numbers will make it a little clearer.'
0:29:54 > 0:29:56If this was to go on the rental market,
0:29:56 > 0:30:01I would recommend £550 to £575 per calendar month.
0:30:01 > 0:30:05The rental value on this property would be £500 per calendar month.
0:30:05 > 0:30:08Yeah, that's fine. I'm happy with that.
0:30:08 > 0:30:11It's kind of what I expected, I guess. Or hoped for, anyway.
0:30:11 > 0:30:17'Those rental values would give Daryl a yield of between 6.5 and 7.5 percent.
0:30:17 > 0:30:20'That's definitely a better return than leaving money in the bank.
0:30:20 > 0:30:24'How might his £90,000 investment fair on the resale market?'
0:30:26 > 0:30:31I would suggest putting this on the open market at £99,950.
0:30:31 > 0:30:34In my opinion, I would market this property for £99,000.
0:30:34 > 0:30:38Well, you can ask what you want for it, but it's whether you get it.
0:30:38 > 0:30:43So if I got offered that, then I would sell it for that,
0:30:43 > 0:30:45but not for any less, really.
0:30:45 > 0:30:52'So, Daryl will reconsider his options here if he can't achieve the higher resale value as he hopes.
0:30:52 > 0:30:56'Has it been a tough first investment for him?'
0:30:56 > 0:30:59It's been quite hectic, trying to fit work in and this in
0:30:59 > 0:31:03and all the travelling and everything else, it's been quite hectic,
0:31:03 > 0:31:07so I don't think I would jump at it too soon just yet.
0:31:07 > 0:31:13'Perhaps he will need a little more time not only to help this house achieve a better price,
0:31:13 > 0:31:16'but also for his love of property developing to grow.'
0:31:16 > 0:31:19# Give me just a little more time
0:31:19 > 0:31:23# And our love will surely grow
0:31:23 > 0:31:26# Baby, please, baby
0:31:29 > 0:31:34'Today's property is in the residential area of Morden in Surrey,
0:31:34 > 0:31:38'now home to the biggest mosque in Western Europe.
0:31:38 > 0:31:44'Morden's increasingly becoming a popular area to live, with good schools, road and rail links,
0:31:44 > 0:31:48'and it's just a few miles away from the more affluent Wimbledon.'
0:31:50 > 0:31:53Well, if you quite like the idea of living in the area
0:31:53 > 0:31:57but don't want to pay centre court on finals day prices,
0:31:57 > 0:31:59this could be a good alternative.
0:31:59 > 0:32:04We've got an end of terrace, had a guide price of just £150,000,
0:32:04 > 0:32:06which for two bedrooms, isn't at all bad.
0:32:06 > 0:32:10Sometimes it's the unseeded properties that turn out to be winners.
0:32:12 > 0:32:15'Like centre court, it's got a decent roof
0:32:15 > 0:32:19'and there's double glazing to keep down any racket from the road.
0:32:19 > 0:32:24'But I think the state of the grass in the front garden may not be quite up to Wimbledon standards.
0:32:24 > 0:32:27'It looks like it may have gone to seed.'
0:32:27 > 0:32:31So what kind of condition is this particular player in at the moment?
0:32:31 > 0:32:35Well, straight through the front door, it doesn't look too bad.
0:32:35 > 0:32:40Stairs up to the bedrooms there. Little corridor here leading down to the kitchen area.
0:32:40 > 0:32:45Large front lounge. That's a nice size space. We could do something with the fireplace.
0:32:45 > 0:32:50Then it gets a bit weird as you walk towards the kitchen. This wall, stud partition, get rid of that
0:32:50 > 0:32:55because you then open up this huge great space. The kitchen is not in bad condition,
0:32:55 > 0:32:59but I think with that wall gone, you'd create a lovely kitchen-dining area
0:32:59 > 0:33:03and suddenly, for the size of the property, it's 40-love.
0:33:03 > 0:33:10'Downstairs seems to have served up some promising accommodation, so can upstairs match it?'
0:33:12 > 0:33:19Upstairs, there is a nice surprise. Two really good-sized bedrooms and a bathroom. Look at this.
0:33:19 > 0:33:24Not what you'd expect. Big bath, a bit tired and dated, you'd probably want to replace that.
0:33:24 > 0:33:28But apart from that, wonderful. There is a few signs of some kind of mould on the ceiling,
0:33:28 > 0:33:33although my guess is that's more condensation caused by dampness in the room,
0:33:33 > 0:33:37but it's probably worth checking out the tiles on the roof just to be sure.
0:33:37 > 0:33:41'I guess the only disappointment upstairs is that there are just two bedrooms.
0:33:41 > 0:33:46'They are doubles, but only two means this wouldn't appeal so much to the family market.
0:33:46 > 0:33:50'That's especially a shame when you see the space outside.'
0:33:50 > 0:33:54I'm already quite impressed with what you're getting for that £150,000 guide price,
0:33:54 > 0:33:57but come out the back and there's another real good bonus.
0:33:57 > 0:34:03The garden is actually a really good size space. It needs a bit of tender loving care, a new fence
0:34:03 > 0:34:05and a good weekend with a strimmer.
0:34:05 > 0:34:10Also out the back here, maybe there's the potential for an extension, possibly a conservatory.
0:34:10 > 0:34:14Certainly, increasing that downstairs space would be a really good thing to do.
0:34:14 > 0:34:17'And apart from getting out the strimmer,
0:34:17 > 0:34:21'I think this summer house has seen the last of its summers.
0:34:21 > 0:34:26'So, what do we make of this house? Well, the kitchen will need to be completely replaced,
0:34:26 > 0:34:30'but the reception room has some lovely character features.
0:34:30 > 0:34:32'The bathroom's a good size,
0:34:32 > 0:34:34'but there are signs of damp.
0:34:34 > 0:34:38'Bedrooms are pleasant and spacious
0:34:38 > 0:34:40'but the plaster work needs looking at.
0:34:42 > 0:34:47'The main bedroom is very roomy... but it's purple.
0:34:49 > 0:34:53'So, what does a local estate agent make of the property?
0:34:53 > 0:34:56'What needs to be done to make it a real winner?'
0:34:56 > 0:35:01If it was me buying the property, I'd put a conservatory on the back
0:35:01 > 0:35:03or a single storey extension.
0:35:03 > 0:35:06'Well, a conservatory is one of the things the house hasn't got.
0:35:06 > 0:35:10'But can it claim any edge over the competition?'
0:35:10 > 0:35:13This particular house has an upstairs bathroom.
0:35:13 > 0:35:20Some of them have downstairs bathrooms, which can put prospective tenants or purchasers off,
0:35:20 > 0:35:22so that is a definite advantage here.
0:35:22 > 0:35:26'Advantage this house. But what sort of returns could you expect here?'
0:35:27 > 0:35:30To put on the market for rental, in good order,
0:35:30 > 0:35:34it would be £950 to £1,000 per calendar month.
0:35:34 > 0:35:38'And what resale value could this house, guided at £150,000,
0:35:38 > 0:35:41'achieve once renovated?'
0:35:41 > 0:35:46If the property was in good order, I'd put it on for £215,000 to £220,000.
0:35:46 > 0:35:49'So it could net a handsome profit if sold.
0:35:49 > 0:35:52'And the rental values aren't too shabby, either.
0:35:55 > 0:35:58I really like this little place. Loads of character.
0:35:58 > 0:36:01Yes, it needs a bit of money spent on it to sort it out,
0:36:01 > 0:36:05but you'd end up with a really lovely little property in a great location.
0:36:05 > 0:36:10For that guide price, I think it's a great one to go for. Let's see who spotted it at the auction.
0:36:13 > 0:36:18Move on to Morden. Lot 29.
0:36:18 > 0:36:21Two-bed end-of-terrace house. Seen this one.
0:36:21 > 0:36:26Nice house, needs a bit of refreshing, but I think it's quite good value.
0:36:26 > 0:36:28180?
0:36:28 > 0:36:32Start at 150, then.
0:36:32 > 0:36:34It won't go much below 150.
0:36:34 > 0:36:36Bidding, yeah? 150.
0:36:36 > 0:36:40155. 155.
0:36:40 > 0:36:43160. 165.
0:36:43 > 0:36:46I can't see. 165, sorry, in the stripy shirt.
0:36:46 > 0:36:48165. 166.
0:36:48 > 0:36:53167. 168. 169.
0:36:53 > 0:36:56169 at the back.
0:36:56 > 0:36:58170. 171.
0:37:00 > 0:37:03171 on the phone? Yes?
0:37:03 > 0:37:07171. 172. 173.
0:37:10 > 0:37:13173, sir, yes? 174.
0:37:13 > 0:37:14175.
0:37:14 > 0:37:17175. 176.
0:37:17 > 0:37:19177.
0:37:19 > 0:37:21177?
0:37:21 > 0:37:24If not, 176, first time,
0:37:24 > 0:37:27second time. 177.
0:37:27 > 0:37:30178. 179.
0:37:31 > 0:37:34178, first time, second time,
0:37:34 > 0:37:37third and last time if you're all done.
0:37:37 > 0:37:40178. Well done.
0:37:40 > 0:37:44'For £178,000, £28,000 over the guide price,
0:37:44 > 0:37:49'the new owner of the two-bed semi-detached house in Morden is Ali.
0:37:49 > 0:37:55'He's an accountant by trade, so I wondered why he thought this added up to a promising purchase.'
0:37:57 > 0:38:01Ali, congratulations. Well done. Why did you want to buy this place?
0:38:01 > 0:38:04Well, I bought it really for my daughter.
0:38:04 > 0:38:09She's looking for a house to buy and looked at it and said, "Let's try this one."
0:38:09 > 0:38:12Right. So why did you home in on this particular area?
0:38:12 > 0:38:18Er, it's near the station and it's... We were looking for something within her budget
0:38:18 > 0:38:21- and this seems to fall in that category.- Right.
0:38:21 > 0:38:26- What was it, apart from the price, that appealed?- Er, the brickwork,
0:38:26 > 0:38:31the roof, I love houses that have yellow bricks.
0:38:31 > 0:38:36# Oh, I've finally decided my future lies
0:38:36 > 0:38:39# Beyond the yellow brick road
0:38:39 > 0:38:42'Well, in Ali's case, it was "Hello, Yellow Brick Road"
0:38:42 > 0:38:47'and he hoped that by following it, he could give his 24-year-old daughter, Sheena, a bright future.'
0:38:47 > 0:38:50So you're dad, you're getting heavily involved, are you?
0:38:50 > 0:38:54Yes, I'll be spending a bit of time and money.
0:38:54 > 0:39:01- The sawing and the hammering, is that something you're up to? - I've got a builder who will help out.
0:39:01 > 0:39:03I've got an electrician, as well.
0:39:03 > 0:39:07And I'll be doing a lot of the decorating.
0:39:07 > 0:39:12- Talk me through what you're going to do to the place. - New bathroom, new kitchen.
0:39:12 > 0:39:15Probably extend the kitchen a little bit more
0:39:15 > 0:39:19in terms of take out the wall and make that into a big kitchen-diner.
0:39:19 > 0:39:24- Do the garden, front and back. - So what's the budget for the work?
0:39:24 > 0:39:27About £15,000 to £17,000.
0:39:27 > 0:39:31'And that £15,000 to £17,000 budget is once again care of Dad.
0:39:31 > 0:39:37'He will also do a lot of the work himself, and hasn't got that long to do it, either.'
0:39:38 > 0:39:41What kind of timescales?
0:39:41 > 0:39:43Eight to ten weeks, hopefully.
0:39:43 > 0:39:46Working during the day or are you doing your main job?
0:39:46 > 0:39:50I work three days a week, so Wednesday, Thursday, Friday, I'm at work,
0:39:50 > 0:39:52so the rest of the time I'll be spending here.
0:39:52 > 0:39:55What about your daughter? What work is she going to do on it?
0:39:55 > 0:39:59She'll probably just come and say, "Why is it taking so long?"
0:39:59 > 0:40:02Do you slightly mollycoddle your daughter?
0:40:02 > 0:40:06You're paying for it, now you're restoring it for her!
0:40:06 > 0:40:10She'll probably choose the kitchen and the bathroom and things like that.
0:40:10 > 0:40:15But, in terms of helping out with a paintbrush, I'm not too sure.
0:40:15 > 0:40:20- She's a lucky lady! Does she appreciate it?- Yes, she does.
0:40:20 > 0:40:23# The lucky one, I'm the lucky one
0:40:23 > 0:40:26'Hopefully, Ali is in tune with is daughter's requirements
0:40:26 > 0:40:29'and they can maintain a harmonious relationship throughout.
0:40:29 > 0:40:35'I must say, I think she's very lucky to have a dad like him.'
0:40:35 > 0:40:38Well, I think Ali's definitely got the right idea for this place
0:40:38 > 0:40:41and he could end up with a very good little property.
0:40:41 > 0:40:45However, he has to keep tight rein on the budget and the timescale, as usual.
0:40:45 > 0:40:48Find out how he gets on later in the show.
0:40:51 > 0:40:54Time waits for no man, that's for sure.
0:40:54 > 0:40:57Now, have our buyers lived up to their promises?
0:40:57 > 0:40:59Let's go back and find out.
0:41:03 > 0:41:06'Chatham in Kent is steeped in naval history
0:41:06 > 0:41:10'and famous for the shipyard that built Nelson's flagship, the Victory.
0:41:10 > 0:41:13'The success of that was based on working as a team,
0:41:13 > 0:41:16'and it was this teamwork approach that appealed to Adrian and Mark.
0:41:16 > 0:41:20'Both of them had previously worked separately on property renovations,
0:41:20 > 0:41:23'but decided it was time to pool their resources.
0:41:23 > 0:41:30'To that end, they bought this three-bed terraced house in Chatham for £144,000.
0:41:30 > 0:41:34# Cos I think it's time that you understood
0:41:34 > 0:41:37# We're better off as two
0:41:37 > 0:41:40So what sort of different things can you both bring to the table?
0:41:40 > 0:41:44Ade has an awful lot of experience with the doors, the windows,
0:41:44 > 0:41:49anything to do with the soffits, fascias, conservatories, he's the number one man.
0:41:49 > 0:41:52My side is all the internal bits and pieces,
0:41:52 > 0:41:56so the decorating side, the carpets, all those sort of contacts.
0:41:57 > 0:42:00'Adrian has his own double-glazing company.
0:42:00 > 0:42:04'Mark has a financial background, but is now a full-time property investor.
0:42:04 > 0:42:09'So, with their combined skills, and armed with £15,000 to £20,000 budget,
0:42:09 > 0:42:14'they set about the task of modernising this rather dated three-bed house.
0:42:14 > 0:42:17'Just over nine months later, we're back.
0:42:18 > 0:42:21'Have two heads been better than one?
0:42:21 > 0:42:23'Well, the outside's looking pretty promising.
0:42:26 > 0:42:31What we basically did was try to pick the poorest house in the street
0:42:31 > 0:42:35and hopefully we've turned it into the best house in the street.
0:42:38 > 0:42:41# Better than all the rest
0:42:42 > 0:42:48'And by the looks of things inside, it certainly does look like it's up with the best of them.
0:42:51 > 0:42:54# Ooh, you're the best
0:42:55 > 0:43:01As you can see, there's a new downstairs toilet been completely done.
0:43:01 > 0:43:06Also, the damp problem in the kitchen, which was down to the mains water pipe corroded,
0:43:06 > 0:43:09we sorted that all out, had the wall replastered.
0:43:09 > 0:43:11And a complete new kitchen,
0:43:11 > 0:43:16very similar layout, but everything's been replaced.
0:43:16 > 0:43:21'So, the kitchen hasn't been opened out, but it's certainly been updated.
0:43:23 > 0:43:27'Upstairs, there are no structural changes, but the rooms are now completed renovated,
0:43:27 > 0:43:32'and although the middle bedroom still contains the boiler, it's a new boiler
0:43:32 > 0:43:35'and is now sited neatly in its own cupboard.
0:43:41 > 0:43:45'And the bathroom, well, that's completely modernised.
0:43:45 > 0:43:48'It looks like together they've cracked this job.'
0:43:48 > 0:43:53One of my roles has really been on the administration and finance side.
0:43:53 > 0:43:58Ade then leads with more of the technical building side
0:43:58 > 0:44:02and then I follow behind him and then do the decorative side.
0:44:02 > 0:44:06So it's a little bit of me, a bit of him, a bit of me, and to and fro.
0:44:06 > 0:44:11'Adrian concentrated on the doors, plumbing and kitchen.
0:44:12 > 0:44:18'Mark focused on project managing, decorating and finishing off.
0:44:18 > 0:44:21'It was also up to him to sort out the outside space,
0:44:21 > 0:44:24'including both back and front gardens.'
0:44:24 > 0:44:28And we had a wall here, which unfortunately didn't have any footings at all,
0:44:28 > 0:44:32so the weight of the bricks that were on the wall really caused it to almost fall over.
0:44:32 > 0:44:36So we thought the safest thing to do was to take the wall down completely
0:44:36 > 0:44:40and then, aesthetically, it's much more pleasing to see a nice, clean fence.
0:44:44 > 0:44:46'All in all, they've done a great job,
0:44:46 > 0:44:49'but although they've worked well together,
0:44:49 > 0:44:51'did they get on famously?
0:44:51 > 0:44:54'After all, this project was really an experiment
0:44:54 > 0:44:57'to see if the partnership would work long-term.'
0:44:57 > 0:45:00We haven't had any arguments. No fights.
0:45:00 > 0:45:02- It's gone quite well, hasn't it? - Yeah.
0:45:02 > 0:45:07And everything's quite easy, on agreements on different things, and no problems.
0:45:07 > 0:45:12'The pressure points in any partnership are usually where and how much money to spend.
0:45:12 > 0:45:15'So did they get the numbers right here, too?'
0:45:21 > 0:45:27It's difficult, because we said £15,000 to £20,000 as a budget,
0:45:27 > 0:45:32and we haven't reached the 20, which is great. We've still got our contingency fund left behind.
0:45:32 > 0:45:36But, obviously, we think we've done it to a good standard
0:45:36 > 0:45:39and we're hoping that that does pay off in the long term,
0:45:39 > 0:45:45either with good tenants who rent from us, and then, ultimately, a decent sale price in the future.
0:45:47 > 0:45:52'A £15,000 spend on top of their £144,000 purchase price,
0:45:52 > 0:45:58'along with costs and fees, will take their total outlay to just under £165,000.
0:45:58 > 0:46:03'Has their first joint investment paid dividends? What do two local estate agents think?
0:46:03 > 0:46:06My first impression of this house as I walked in is very good.
0:46:06 > 0:46:09It's a nice three-bedroom property, done to a very good standard.
0:46:09 > 0:46:13In my opinion, the best selling feature about this property is its location.
0:46:13 > 0:46:17The catchment area for one of the most popular schools round here,
0:46:17 > 0:46:20access to the town, the station, and generally it's just a nice road,
0:46:20 > 0:46:23so its location is its most saleable feature.
0:46:28 > 0:46:33My first impression of the property is that they've done an amazing job.
0:46:33 > 0:46:38They have done it to such a high specification, it really is very, very nice.
0:46:40 > 0:46:44I think, for a lot of people, they don't like small gardens,
0:46:44 > 0:46:47so it's nice that you've got a reasonable garden
0:46:47 > 0:46:50and it's nicely laid with lawn, so they can do what they like with it
0:46:50 > 0:46:53and put flowers, vegetables, whatever.
0:46:53 > 0:46:59'In the currently tougher market, Adrian and Mark have decided that rental is the best route.
0:46:59 > 0:47:03'So have they invested their £165,000 wisely?'
0:47:05 > 0:47:09If I was to put this property onto the market, I would market the property in the region of
0:47:09 > 0:47:12£155,000 to £160,000,
0:47:12 > 0:47:15with a sale value of around about £150,000.
0:47:15 > 0:47:18I think the property will sell, in this current market,
0:47:18 > 0:47:22somewhere in the region of £150,000 to £160,000.
0:47:22 > 0:47:25I think that's a little bit light on value.
0:47:25 > 0:47:30And me. We were thinking nearer 165, perhaps 170.
0:47:30 > 0:47:33Yeah. So I think they've undervalued the property a bit.
0:47:33 > 0:47:37'Perhaps it wouldn't make quite the sale price they'd hoped for,
0:47:37 > 0:47:40'but this property is all about long-term rental.'
0:47:41 > 0:47:44The rental market at the moment is going very well in Chatham.
0:47:44 > 0:47:49We would put this on the market between £725 and £750 per calendar month.
0:47:49 > 0:47:54I think on the rental market at the moment, they will achieve in the region of £700 per calendar month
0:47:54 > 0:47:56to £725 per calendar month.
0:47:56 > 0:48:01- Yeah, 750 we think is about right. - Yeah, I was thinking around that, so that's pretty good.
0:48:01 > 0:48:07'£750 per month would give them a very decent five percent annual yield,
0:48:07 > 0:48:09'which is not bad for starters.
0:48:09 > 0:48:12'So perhaps there's more to come from this partnership?'
0:48:12 > 0:48:17- I think it remains positive. I don't think we've had any issues, have we? - No. Still good friends
0:48:17 > 0:48:20- and we're still here, aren't we? - Yeah.
0:48:27 > 0:48:31'Working together, they've certainly done wonders with this house
0:48:31 > 0:48:35'and can look back on the project as a job very well done.'
0:48:44 > 0:48:48'Just on the outskirts of London in Morden, Surrey,
0:48:48 > 0:48:52'a two-bed end-of-terrace property went up for auction.
0:48:52 > 0:48:57'Although slightly worse for wear, it appeared to be the perfect purchase for accountant Ali.
0:48:57 > 0:49:01'He figured it was worth shelling out to the tune of £178,000
0:49:01 > 0:49:04'to get this house on the yellow brick road.'
0:49:07 > 0:49:11- Why did you want to buy this place? - Well, I bought it really for my daughter.
0:49:11 > 0:49:16She's looking for a house to buy and looked at it and said, "Let's try this one."
0:49:17 > 0:49:22'So, armed with a £15,000 budget, Ali set about making the house ready
0:49:22 > 0:49:24'for his daughter, Sheena, to live in.
0:49:24 > 0:49:27'Just three months later, we're back.
0:49:29 > 0:49:31'There's certainly been a massive improvement.
0:49:31 > 0:49:35'Gone is the long grass and uncared-for look at the front.
0:49:37 > 0:49:40'Whilst at the back, it may look like a bit of a wasteland,
0:49:40 > 0:49:44'but it's been levelled and is ready for a lawn to be laid.
0:49:50 > 0:49:53'Inside in the front room, the chimney breast has been removed
0:49:53 > 0:49:57'and the room has been recarpeted and decorated.
0:49:58 > 0:50:00'And as for the tired old kitchen...
0:50:02 > 0:50:05'Well, that's been totally freshened up.'
0:50:06 > 0:50:11Well, what we've done here, there was a wall here dividing the two spaces,
0:50:11 > 0:50:18so we've taken the wall out and had the whole kitchen replastered
0:50:18 > 0:50:22and new windows and doors, double-glazed, of course.
0:50:22 > 0:50:24And new flooring.
0:50:24 > 0:50:30And, generally, I'm really pleased with the space.
0:50:30 > 0:50:33'Not only has he managed the space well,
0:50:33 > 0:50:36'Ali's also managed to save some money
0:50:36 > 0:50:38'by using the old units and doors.
0:50:38 > 0:50:41'Yet, with new worktops, flooring and tiling,
0:50:41 > 0:50:44'he's completely transformed the look of the kitchen.
0:50:44 > 0:50:48'So downstairs is looking great. What about upstairs?
0:50:49 > 0:50:56'Well, the back bedroom is now less Swedish sauna and more contemporary and modern.
0:50:59 > 0:51:03'And the master bedroom, well, it isn't purple any more.
0:51:03 > 0:51:07'And although the bedrooms are fairly standard in their appearance,
0:51:07 > 0:51:10'the same can't be said for the bathroom, which is ultra-modern,
0:51:10 > 0:51:13'with wooden flooring and chic units.
0:51:13 > 0:51:19'So, it's a pretty comprehensive renovation, and Ali's clearly been very busy.'
0:51:20 > 0:51:24The only people we had here was a plasterer,
0:51:24 > 0:51:27but in terms of everything else, I did it myself,
0:51:27 > 0:51:31friends and family helped out.
0:51:31 > 0:51:35I did all the planning, a lot of the technical stuff I did,
0:51:35 > 0:51:40and the family members helped with cleaning things up after I'd finished the work.
0:51:40 > 0:51:46I think I can say, over the last three months, I've probably had about three days of rest.
0:51:46 > 0:51:50Apart from that, it was a long haul,
0:51:50 > 0:51:53but it needed to be done.
0:51:53 > 0:51:56'Ali still works three days a week as an accountant,
0:51:56 > 0:51:59'so fitting in a house renovation as well wasn't easy.
0:51:59 > 0:52:04'But then he was happy to go the extra mile because it was for his daughter, Sheena,
0:52:04 > 0:52:06so I hope she appreciates it.
0:52:06 > 0:52:08# My girl
0:52:11 > 0:52:13# My girl
0:52:13 > 0:52:16Sheena's been quite useful. She helped with the painting
0:52:16 > 0:52:21and she also helped with choosing certain colours
0:52:21 > 0:52:25and generally helped with buying some of the products.
0:52:25 > 0:52:30She has had more input than I expected, but then it is her property,
0:52:30 > 0:52:32so she does need to put something in.
0:52:32 > 0:52:37'Yes, I think so, too, and I would've thought that with the way the house is looking,
0:52:37 > 0:52:39'she can't wait to move in.'
0:52:41 > 0:52:44Originally, Sheena was going to live here,
0:52:44 > 0:52:50but she's recently changed her job, which means that she has to travel a bit further out,
0:52:50 > 0:52:54and also she's got to get up early in the morning to get to her workplace,
0:52:54 > 0:52:58so it's turned out that this would be too far for her to travel,
0:52:58 > 0:53:04so we'll probably rent it out and see what happens after that
0:53:04 > 0:53:09and maybe try and buy her a property closer to work.
0:53:09 > 0:53:13# Oh, I've finally decided my future lies
0:53:13 > 0:53:16# Beyond the yellow brick road
0:53:16 > 0:53:21'So, Sheena's rainbow end wasn't at the end of this yellow brick road,
0:53:21 > 0:53:25'but it could still be a golden opportunity as an investment
0:53:25 > 0:53:28'if her accountant dad has kept to his budget.'
0:53:28 > 0:53:34The budget, although originally we thought it was going to be £15,000 to £17,000,
0:53:34 > 0:53:37it turned out that we managed to come under budget.
0:53:37 > 0:53:41Around £13,500, but with the garden, I think another £500,
0:53:41 > 0:53:47so we'll probably complete the whole job at about £14,000, so I'm really pleased with that.
0:53:48 > 0:53:52'Yes, any accountant who comes in under budget is a happy man.
0:53:52 > 0:53:57'But with a £14,000 spend, plus the £178,000 purchase price,
0:53:57 > 0:54:02'Ali's total outlay is edging towards £196,000.
0:54:02 > 0:54:05'So, has it been a good investment?
0:54:05 > 0:54:08'What do two local estate agents think?'
0:54:08 > 0:54:12It is very nicely presented. I don't think they've overdone the property
0:54:12 > 0:54:16in terms of doing too much, because you can always do that,
0:54:16 > 0:54:19especially with the kind of market it is.
0:54:19 > 0:54:21I think it's all very appropriately done.
0:54:21 > 0:54:25I think it's a vast improvement on what it originally was. It was a bit of a mess.
0:54:25 > 0:54:30I'm particularly impressed by the oak floors, plus the bathroom has a particularly nice finish.
0:54:30 > 0:54:35I think the upstairs bathroom is definitely a wow factor.
0:54:35 > 0:54:39Obviously, they've got a nice size garden, as well,
0:54:39 > 0:54:42the rear garden, and just the whole property is very nicely done.
0:54:42 > 0:54:45The chimney breast has been removed in the lounge
0:54:45 > 0:54:48and the wall in the kitchen. Since that has happened,
0:54:48 > 0:54:52the rooms are better proportioned and it gives the house a nice feel and size
0:54:52 > 0:54:54and has let more light into the kitchen.
0:54:54 > 0:54:59'Ali is now considering this as a potential rental property.
0:54:59 > 0:55:03'But having invested around £196,000 here,
0:55:03 > 0:55:06'could he sell it on and make a decent profit?'
0:55:07 > 0:55:12I think the resale value of this property, with the way the market is,
0:55:12 > 0:55:16you're probably looking anywhere between £200,000 and £210,000.
0:55:16 > 0:55:20I think this property should go on the market for £235,000.
0:55:20 > 0:55:23235 seems quite optimistic.
0:55:23 > 0:55:28I reckon in the middle somewhere, between the two.
0:55:28 > 0:55:33'Well, there may be a potential profit of between £4,000 and £39,000 if he could sell it.
0:55:33 > 0:55:38'But for now, rental figures are of more interest to Ali.'
0:55:39 > 0:55:45This property could rent for anywhere between £900 and £1,000 per calendar month.
0:55:45 > 0:55:49I think this property would rent out for £1,100 per calendar month.
0:55:49 > 0:55:54Yeah, having heard those rental figures, I think we'll definitely go down that route.
0:55:54 > 0:55:57'If Ali manages to rent it out all year,
0:55:57 > 0:56:01'£900 to £1,100 per month could mean an annual rental income
0:56:01 > 0:56:04'of between nearly £11,000 and £13,000.
0:56:04 > 0:56:09'That's a yield of between 5.5 and 6.5 percent.
0:56:09 > 0:56:12'So, having done all that graft to give his daughter a house
0:56:12 > 0:56:15'she's now not going to live in, was it worth all the effort?'
0:56:15 > 0:56:19It's been hard work, but I think it's also been very therapeutic.
0:56:19 > 0:56:25Just doing something other than paperwork is just fantastic and I really loved it.
0:56:25 > 0:56:30'I think it's lucky that Ali did enjoy it, because as his daughter does need another house
0:56:30 > 0:56:36'and he has two other children, he could be very busy doing renovations for some time to come.'
0:56:41 > 0:56:45So, many different experiences of buying property at auction there,
0:56:45 > 0:56:47and we'll have lots more for you next time.
0:56:47 > 0:56:51- So make sure you join us then! See you soon.- Goodbye.- Goodbye.
0:56:52 > 0:56:56Subtitles by Red Bee Media Ltd
0:56:56 > 0:57:00E-mail subtitling@bbc.co.uk
0:57:00 > 0:57:00.