0:00:02 > 0:00:06Auctions used to be the territory of just builders and developers
0:00:06 > 0:00:09but anyone can go along and find a bargain.
0:00:09 > 0:00:16Even in these tougher times, they're still finding some real deals under the hammer.
0:00:40 > 0:00:45Even for experienced buyers, auctions can be nerve-racking and exciting.
0:00:45 > 0:00:51- Just don't get carried away. - So did today's buyers keep their cool and get a good deal?
0:00:51 > 0:00:54Here's what they bought.
0:00:54 > 0:00:58I'm at a nearly perfect property in Derby.
0:00:59 > 0:01:04For a fantastic family house, the kitchen is a little bit pokey.
0:01:04 > 0:01:09'And there are more space issues at this flat in London.'
0:01:09 > 0:01:14This is the only bathroom. It's tiny, long and narrow and you've just got a shower.
0:01:14 > 0:01:20'But I'm having a bit more luck at this two-bed terraced house in Barnsley.'
0:01:20 > 0:01:25All in all, there's nothing wrong with this house.
0:01:25 > 0:01:31All these properties have been sold at auction. We find out who bought them and for how much
0:01:31 > 0:01:33when they went under the hammer.
0:01:36 > 0:01:41I'm in Allestree, one of the most sought after areas of Derby.
0:01:41 > 0:01:47It's just two miles from the city centre, home to Derby University and surrounded by countryside.
0:01:47 > 0:01:53So it ticks quite a few boxes for a residential area. Allestree was a quiet village until 40 years ago
0:01:53 > 0:01:58when it became a boom town for housebuilders and it grew and grew.
0:01:58 > 0:02:04There's a real mix of housing here nowadays. This property was built around the 1960s.
0:02:04 > 0:02:08Three-bed, semi-detached. It had a guide price of 150,000 quid.
0:02:08 > 0:02:13And from the outside... it doesn't look at all bad.
0:02:18 > 0:02:23Although it's on quite a busy road, there's a decent-sized front garden.
0:02:23 > 0:02:25But is it as well-kept inside?
0:02:25 > 0:02:32OK, so nice little entrance foyer. Somewhere to put your hats and coats and bags of shopping and stuff.
0:02:32 > 0:02:38Through to your main living area. Good-sized space, nice views out to the rear there.
0:02:38 > 0:02:44Very 1960s, '70s kind of touch - the brick fire surround place thing.
0:02:44 > 0:02:48Well, if you like it, great. Probably best to take it out.
0:02:48 > 0:02:54But here's an interesting feature. Through to what is the dining area and look at these curtains!
0:02:54 > 0:02:59That's a bit odd. And then through to the kitchen,
0:02:59 > 0:03:03but straight away I'm thinking why not take out this wall here?
0:03:03 > 0:03:08It's not a stud wall, so it probably needs some sort of support,
0:03:08 > 0:03:15but that would really open this whole thing up. At the moment, the kitchen is a little bit pokey.
0:03:15 > 0:03:21Yes, it needs a bit of care and attention, but before you do that, take that wall out
0:03:21 > 0:03:25and create a fantastic kitchen/dining area.
0:03:25 > 0:03:28Another way of creating more space
0:03:28 > 0:03:33would be to extend to the back, depending on the size of the garden.
0:03:33 > 0:03:37So what's round the back? Well, I have a lovely surprise.
0:03:37 > 0:03:40It's a great garden.
0:03:40 > 0:03:43You've even got an apple tree.
0:03:43 > 0:03:46# Sitting eating an apple one day
0:03:46 > 0:03:49# Under the apple tree... #
0:03:49 > 0:03:53This lovely garden was clearly the apple of someone's eye,
0:03:53 > 0:04:00but would you want to eat into it to create a single or double-storey extension?
0:04:00 > 0:04:06You'd need to balance the costs and the potential hassle of planning permission
0:04:06 > 0:04:10against whether it would add value to the property.
0:04:10 > 0:04:14Another bonus is that as well as off-street parking at the front,
0:04:14 > 0:04:17there's a spacious garage.
0:04:17 > 0:04:21Back inside, what else does it have to offer?
0:04:21 > 0:04:27Upstairs, you probably don't expect too many surprises. Three bedrooms.
0:04:27 > 0:04:32Single there, medium-sized double and then the bathroom. It's the only one
0:04:32 > 0:04:36and for a family home, a bit like the kitchen, it is far too small.
0:04:36 > 0:04:40I'd look at changing these internal walls.
0:04:40 > 0:04:47But good news - the master bedroom is a good size. In-built cupboard with a window is a pleasant touch.
0:04:47 > 0:04:54Not in bad condition at all. You've got central heating and views out over the garden. Lovely.
0:04:54 > 0:05:00All in all, the house... You expect it to be bigger when you approach it from outside.
0:05:00 > 0:05:05But with a bit of playing around it could be a really great property.
0:05:05 > 0:05:09So remembering that the guide price was £150,000,
0:05:09 > 0:05:13I invited the auctioneer who sold it to give his opinion.
0:05:13 > 0:05:16The interesting thing is
0:05:16 > 0:05:20I think this house was built around 1960, thereabouts,
0:05:20 > 0:05:22and it's had the same owner,
0:05:22 > 0:05:26which is quite unusual as it's 50 years now.
0:05:26 > 0:05:32Anyway, as you would expect from the same occupation, it's slightly dated,
0:05:32 > 0:05:36although it has been kept up to date in terms of structural repair,
0:05:36 > 0:05:41but everything is ready for bringing into the 21st century.
0:05:41 > 0:05:45Whilst it's being updated, would it be worth adding on an extension?
0:05:45 > 0:05:49The majority of houses in this stretch of road
0:05:49 > 0:05:54are all three bedrooms. There is space to make this four bedrooms,
0:05:54 > 0:05:59but only probably and sensibly by a sideways extension.
0:05:59 > 0:06:05You're then talking serious money and I'd have thought it's not cost-effective.
0:06:05 > 0:06:11So extending at the side or back would only be worth it to gain living space
0:06:11 > 0:06:15as you couldn't count on it making you much extra profit.
0:06:15 > 0:06:19What return could you see, once renovated, without an extension?
0:06:19 > 0:06:24If you update what's here without extending it at all,
0:06:24 > 0:06:28it's value would be something of the order of about £190,000.
0:06:28 > 0:06:34In terms of rental value, again assuming it's refurbished, it'd be at least £600 per calendar month
0:06:34 > 0:06:37and probably towards £650.
0:06:37 > 0:06:42Well, what is there not to like about this property?
0:06:42 > 0:06:48Yes, it needs updating, but spend a little bit of money on it and you'd have a lovely family home.
0:06:48 > 0:06:50Let's see who bought it.
0:06:52 > 0:06:57It's a three-bedroomed, detached house. 145? Where do you want to be?
0:06:57 > 0:06:59145 down the centre, thank you.
0:06:59 > 0:07:02At £145,000, opening bid.
0:07:02 > 0:07:04145. 146.
0:07:04 > 0:07:06146. 147.
0:07:06 > 0:07:10147. 148. 149. 150.
0:07:10 > 0:07:13151. 152.
0:07:13 > 0:07:15153.
0:07:15 > 0:07:18153. 54.
0:07:18 > 0:07:20155. 155.
0:07:20 > 0:07:23156. 157.
0:07:23 > 0:07:26158. 159.
0:07:26 > 0:07:28160?
0:07:28 > 0:07:32£159,000 against you.
0:07:32 > 0:07:37I'll take 500. 159 and a half. I'll treat you the same. 160.
0:07:37 > 0:07:43500 again? 160,000 against you. Shakes his head.
0:07:43 > 0:07:48At 160...500. You've been thwarted by a new bidder, but it's not me.
0:07:48 > 0:07:51160,500. No? Sure?
0:07:51 > 0:07:55At £160,500, then. Going once.
0:07:55 > 0:07:58Going twice. Third time. All done?
0:07:58 > 0:08:01Sold at 160 and a half. Thank you.
0:08:01 > 0:08:06Nipping in at the last moment with her bid of £160,500
0:08:06 > 0:08:11was Vicky, who's bought the property with her fiance James.
0:08:11 > 0:08:17Vicky owns a recruitment company and James is a painter and decorator. They live in Derby
0:08:17 > 0:08:23and are delighted to have got their hands on such a well-tended house and garden.
0:08:24 > 0:08:29- Lovely to meet you both. Congratulations.- Thank you.
0:08:29 > 0:08:35- A great house. Tell me why you wanted to buy it.- Well, we basically wanted something a little bigger.
0:08:35 > 0:08:40We've just had a little boy. He's 12 weeks old. We just needed a bigger property
0:08:40 > 0:08:46- with three bedrooms, something to make our family home.- Oh, great. What's your little boy's name?
0:08:46 > 0:08:50- Isaac.- Fantastic. Where are you living at the moment?
0:08:50 > 0:08:55- Sunnyhill.- A smaller property.- Yeah. Only two bedrooms, semi-detached,
0:08:55 > 0:09:03so we just wanted something bigger that we could work on. James wanted a project, so this is ideal for us.
0:09:03 > 0:09:10- But it'll be your family home. - Yeah.- That's great. This would make a lovely family home, big garden.
0:09:10 > 0:09:14- What was it about the property for you?- The area as much as anything.
0:09:14 > 0:09:17We wanted to get over the nice end.
0:09:17 > 0:09:21And, basically, it's detached. And the price of the house.
0:09:21 > 0:09:27We'd looked for a while and couldn't find anything for this kind of money.
0:09:27 > 0:09:31When it came on at 150, we thought we'd go for it.
0:09:31 > 0:09:38These two are pleased as punch with their new purchase, but what do they plan to do with it?
0:09:38 > 0:09:44We'll take the wall out and create a kitchen/diner. Hopefully, we'll extend on the ground floor
0:09:44 > 0:09:49so we'll have a bigger living room and bigger kitchen/diner.
0:09:49 > 0:09:54We'll put new windows in, decorate throughout, new boiler.
0:09:54 > 0:09:59- It needs plenty of work doing. - Right. It is a bit dated. - A little bit.
0:09:59 > 0:10:05- What about the bathroom? It's small for a family house. - That's an issue.
0:10:05 > 0:10:09We don't know what we'll do. We can't extend upwards.
0:10:09 > 0:10:17We don't want to get rid of a bedroom, so we'll probably just put a new bathroom in and breathe in!
0:10:17 > 0:10:23- That's the only compromise.- Yeah. - There's compromised with all properties. That's just one thing.
0:10:23 > 0:10:27It's not a massive house, but what can you do?
0:10:27 > 0:10:32The main focus will be downstairs. Get that extended and sorted out,
0:10:32 > 0:10:36then later on if we do need to build up, maybe we can.
0:10:36 > 0:10:42- But downstairs firstly will be the main focus.- What kind of timescale have you got?
0:10:42 > 0:10:46- Pretty quick.- Yeah. - You're thinking about three months
0:10:46 > 0:10:51- to get the basics done.- Well, I want to move in in about six weeks.
0:10:51 > 0:10:56I'll hit it hard and spend a few hours on it.
0:10:56 > 0:11:02And then as regards extending, just as and when, when we get the money together.
0:11:02 > 0:11:07# Our house in the middle of our street... #
0:11:07 > 0:11:11Six weeks is quite a tight turnaround for moving in,
0:11:11 > 0:11:17but with a tenant lined up for their current property, they have a deadline.
0:11:17 > 0:11:21It does sound as if they have sensible plans for the renovation.
0:11:21 > 0:11:27They'll tackle the work in order of priority, on a budget of around £15,000,
0:11:27 > 0:11:30not including an extension.
0:11:30 > 0:11:34James' skills as a decorator will come in extremely handy.
0:11:34 > 0:11:41How's it going to be doing your day job and then your own property on the evenings and weekends?
0:11:41 > 0:11:48- I'm going to work on it full-time for at least a few weeks. - Just a few.- Just a few, yeah.
0:11:48 > 0:11:53- You're cracking the whip and getting him back to work?- I need to!
0:11:53 > 0:11:58James has certainly got his work cut out, but the thought of moving in
0:11:58 > 0:12:02will be the perfect motivation for them both.
0:12:02 > 0:12:05What are you most excited about?
0:12:05 > 0:12:10I think it's just moving in and just having a bit more space.
0:12:10 > 0:12:14The lack of space, I can't bear it at the moment.
0:12:14 > 0:12:21With all of Isaac's new toys, clothes, it would be so nice to have a bit more space to play with.
0:12:21 > 0:12:28Great. I'm delighted for you both. Congratulations. And next time we'll meet little Isaac maybe.
0:12:28 > 0:12:32- Yeah, we'll bring him.- Thank you. - Congratulations.
0:12:32 > 0:12:37Well, this will make a fantastic family home.
0:12:37 > 0:12:41You can just imagine Isaac playing here. Lots of work to do, though,
0:12:41 > 0:12:48and over a fairly tight timescale. How will they get on? Find out later in the show.
0:12:54 > 0:13:01I'm in the East End of London in Canning Town. It's suffered a bad reputation in the past,
0:13:01 > 0:13:07but the area's future is bright now with regeneration schemes all across the east of the city
0:13:07 > 0:13:11in preparation for the 2012 Olympics.
0:13:11 > 0:13:19# I've been all the world around But I ain't seen none come anywhere near the girls from London town
0:13:19 > 0:13:23# Give me a London girl every time
0:13:23 > 0:13:27# I want a London girl... #
0:13:27 > 0:13:31I'm here to see a flat that's guided at £120,000.
0:13:31 > 0:13:36Here's the interesting bit. The catalogue says it's in Plaistow,
0:13:36 > 0:13:43but this area is actually Canning Town. It won't affect the price much - I've chatted to some agents -
0:13:43 > 0:13:49but it just goes to show it's really important to do your research. So here's the property.
0:13:49 > 0:13:52Let's go inside and see if it's worth £120,000.
0:13:52 > 0:13:58'The outside is rather unkempt and it's a bit of a climb to get up to the first floor flat.
0:13:58 > 0:14:01'Good training for the Olympic Games!'
0:14:01 > 0:14:08Well, I do not like all these stairs, but I do like the fact that you have your own front door.
0:14:08 > 0:14:13When you get up here, it's light, it's bright, it feels really spacious.
0:14:13 > 0:14:18I'm not keen on the woodchip wallpaper that is everywhere.
0:14:18 > 0:14:24They've even wallpapered the ceilings in all the rooms! But three very good-sized bedrooms.
0:14:24 > 0:14:27So far it ticks a lot of boxes.
0:14:28 > 0:14:34It's quite exciting to find a maisonette like this in this dated decorative order. They can be gems.
0:14:34 > 0:14:37Renovated, they can look fantastic.
0:14:37 > 0:14:43You've got a really good-sized reception room, lovely ceiling height, the old gas fire here.
0:14:43 > 0:14:48You've got to think about installing radiators and factor that into the budget.
0:14:48 > 0:14:53But look at this kitchen. Now that is a tremendous size.
0:14:53 > 0:14:59You could easily fit a big table and chairs in this corner. You do need to install new units,
0:14:59 > 0:15:04so that could be quite costly, but it's really a good size.
0:15:04 > 0:15:08'Which is more than can be said for this room.'
0:15:08 > 0:15:14Oh, dear. I was getting a bit overexcited out there earlier.
0:15:14 > 0:15:18This is not great. This is the only bathroom in the property
0:15:18 > 0:15:25and it's tiny, long and narrow and you've just got a shower - no bath. Not good.
0:15:25 > 0:15:30I would like to think there's some way of getting a bath in here, getting rid of this or this.
0:15:30 > 0:15:37You've got a lot of wasted space. Perhaps go across the area of the stairwell,
0:15:37 > 0:15:39but that'll be really costly.
0:15:39 > 0:15:44To me, having just a shower room really limits your market.
0:15:44 > 0:15:50The rest of the property has the potential to be a family home, but no bath is a real drawback.
0:15:50 > 0:15:56The new owner would have to make some inventive changes to squeeze in a bathroom suitable for children.
0:15:56 > 0:16:02But could the problem I noticed in another room need more urgent attention?
0:16:02 > 0:16:09# You spend every waking moment staring at the same crack in the wall... #
0:16:11 > 0:16:19Now I'm not sure if that's something to worry about. Could it be subsidence? It's worth a look.
0:16:19 > 0:16:23Is it historical? Is it progressive? I don't know.
0:16:23 > 0:16:25Something worth bearing in mind.
0:16:25 > 0:16:31Obviously, there's work to do and, fingers crossed, there aren't any major problems to uncover.
0:16:33 > 0:16:39Talking of uncovering, the 20-foot square garden at the back could do with a bit of a clear-out,
0:16:39 > 0:16:44but it's a great space to have, especially for warm summer evenings.
0:16:46 > 0:16:51That guide price of £120,000 would have been tempting at auction.
0:16:51 > 0:16:55What does a local property expert make of this maisonette's potential?
0:16:55 > 0:16:59The property needs complete internal redecorations.
0:16:59 > 0:17:05I think at the point where the carpets are lifted, you'll find
0:17:05 > 0:17:11some of the floorboards and original beams are rotted and need putting back together again.
0:17:11 > 0:17:16Also, once the wallpaper is taken down, a lot of plastering needs done.
0:17:16 > 0:17:20There's no central heating so that needs installing.
0:17:20 > 0:17:26Anything that can be done to put a bathtub in the bathroom for a full bathing facility
0:17:26 > 0:17:29would be a benefit.
0:17:29 > 0:17:33I think the property is a reasonable investment.
0:17:33 > 0:17:38It would do very well as a buy to let, rather than just a quick development.
0:17:38 > 0:17:44So if the buyer did decide to rent it out, what level of rental might it earn?
0:17:44 > 0:17:50I would probably look to rent it for around £1,000-£1,100 per calendar month.
0:17:50 > 0:17:57And if they decided to sell it on, what price could they put it on the market for?
0:17:57 > 0:18:05I would envisage valuing the property, once the work is done, around the £150,000-£160,000 level.
0:18:05 > 0:18:11With the regeneration programme in full swing, it seems like a great time to invest in East London
0:18:11 > 0:18:17but the only downside for me is that tiny, tiny shower room with no bathtub.
0:18:17 > 0:18:22Call me old-fashioned. Let's see what happened when it went to auction.
0:18:22 > 0:18:26Start at 100. Not going below 100. 100's cheap on this.
0:18:26 > 0:18:29100 down in the front. 101?
0:18:29 > 0:18:31101.
0:18:31 > 0:18:33102. 103.
0:18:33 > 0:18:36104. 105.
0:18:37 > 0:18:40106. 107.
0:18:41 > 0:18:44108? 109?
0:18:44 > 0:18:46110?
0:18:46 > 0:18:48111?
0:18:48 > 0:18:52112? 113?
0:18:52 > 0:18:54114?
0:18:54 > 0:18:56115?
0:18:58 > 0:19:01116. 117.
0:19:01 > 0:19:04118. 119.
0:19:08 > 0:19:11120. 121?
0:19:12 > 0:19:16Have a think. 120 in the front. 121 elsewhere?
0:19:16 > 0:19:19121. 122.
0:19:19 > 0:19:22123. 124.
0:19:22 > 0:19:26125. 126.
0:19:26 > 0:19:28127. 128?
0:19:28 > 0:19:33Have a think. 127 with you, sir. 128 elsewhere?
0:19:33 > 0:19:38128 back in? If not, 127 in the aisle. Anyone else?
0:19:38 > 0:19:41First time. Second time.
0:19:41 > 0:19:43128. Back in.
0:19:43 > 0:19:45129. 130?
0:19:45 > 0:19:48131?
0:19:48 > 0:19:50132?
0:19:50 > 0:19:54131, with you, sir. 132?
0:19:54 > 0:19:57If not, 131, first time. Second time.
0:19:57 > 0:20:04Third and last time. Have you all done? Sold. 131, thank you. Well done.
0:20:04 > 0:20:08That final successful bid of £131,000 came from Winston.
0:20:12 > 0:20:18He's a local London lad who used to be an accountant, but is now a full-time developer.
0:20:18 > 0:20:24He's built up a portfolio of rental properties and I caught up with him at his latest buy
0:20:24 > 0:20:26to find out his plans.
0:20:26 > 0:20:32# London Keep on going back to London... #
0:20:32 > 0:20:35- Winston, congratulations.- Thank you.
0:20:35 > 0:20:41- So you've got your property.- I have. - What was it you liked so much?
0:20:41 > 0:20:46For me it was the location. It's very close to Docklands and so on.
0:20:46 > 0:20:50It's fairly close to the Tube and there's a good bus route outside.
0:20:50 > 0:20:55So where are you going to start with the renovations?
0:20:55 > 0:20:59We'll take out everything, the whole kitchen, the shower room.
0:20:59 > 0:21:04Literally gut the whole place and then refit the kitchen.
0:21:04 > 0:21:10Then move on to the shower room and then redecorate throughout, laminate flooring.
0:21:10 > 0:21:16And there's a garden, which is a bit of a forest, so we need to rip that out completely.
0:21:16 > 0:21:22There's going to be a lot of maintenance, a few paving slabs. It'll be small, but nice.
0:21:24 > 0:21:28And talking of small, what has he got in store for that toilet?
0:21:28 > 0:21:31Will he rejig it to fit in a bath?
0:21:31 > 0:21:36You cannot get a bath in there. So it'll really be as it is,
0:21:36 > 0:21:41just retiled, new shower, new sink and toilet, et cetera.
0:21:41 > 0:21:45Keep it as it is, but completely new refurbishment.
0:21:47 > 0:21:51Winston certainly sounds like he's thought this project through,
0:21:51 > 0:21:56but had he checked out the problems in the wall?
0:21:56 > 0:22:00Do you think that could be subsidence, dare I say it?
0:22:00 > 0:22:04No, because I had a survey done and that was not picked up at all.
0:22:04 > 0:22:09They wouldn't have given me the funds if it had subsidence.
0:22:09 > 0:22:14I'm pretty sure it's a surface crack. We'll cover that over.
0:22:16 > 0:22:22Winston has set aside £12,000 for all the work and will be getting a team of builders to do it,
0:22:22 > 0:22:28but that means paying labour costs so I can't help thinking £12,000 is a little on the tight side.
0:22:28 > 0:22:35Em, it is tight, but unfortunately the bank put a retainer on the funds they've given me
0:22:35 > 0:22:39which took more capital from my side.
0:22:39 > 0:22:45So £12,000 is what it is and it has to be done within that fund.
0:22:45 > 0:22:52- I'm laughing because if anybody is going to keep within that budget it's going to be you!- Exactly, yes!
0:22:52 > 0:22:59- I bet you are there with your spreadsheets...- Yes. - Are you?- As we go, I add it up.
0:22:59 > 0:23:06So I've got to stick to that £12,000. If something goes wrong and I have to cover it, fair enough,
0:23:06 > 0:23:13- but my plan is to stick within it. - How long do you think it'll take you before you can put it up for rent?
0:23:13 > 0:23:18- I'm estimating about six weeks. - Wow! That's quite ambitious.
0:23:18 > 0:23:22- £12,000, six weeks.- Yeah. - But I like your style.
0:23:22 > 0:23:26- If anybody can do it, it's you! - Well, I'll certainly try.
0:23:26 > 0:23:32- I bet you don't take any nonsense. - I have my way of getting around things. I don't scream and shout,
0:23:32 > 0:23:38- but I'm looking to get it done. - You're making me feel very calm. - Good!- I have a lot of faith in you.
0:23:38 > 0:23:45- It's been so lovely meeting you. Good luck. It's going to be exciting to see the outcome.- Thank you.
0:23:45 > 0:23:46Lovely.
0:23:48 > 0:23:55So Winston is a numbers man. He's an accountant by trade, so he'll be watching this budget closely.
0:23:55 > 0:24:01But can he really renovate this place for £12,000? And in just six weeks?
0:24:01 > 0:24:05Join us later in the programme and you can find out.
0:24:05 > 0:24:11Coming up: I'll be at this house in Barnsley where I think there's a potential profit.
0:24:11 > 0:24:15Here's where you could spend money and make a big difference.
0:24:15 > 0:24:19There's been a change of plan in London.
0:24:19 > 0:24:25We were going to go for a light refurbishment, just redecorate. We ended up stripping every wall.
0:24:27 > 0:24:32But first there was added pressure on the renovation of this property.
0:24:32 > 0:24:35It had to be suitable for a baby.
0:24:37 > 0:24:44Now we're back in Allestree, Derby, where this three-bedroom detached house sold at auction
0:24:44 > 0:24:49for £160,500. I met up with new parents Vicky and James
0:24:49 > 0:24:54who were looking forward to a more spacious family home.
0:24:54 > 0:25:01We wanted something a little bigger. We've just had a new little boy, so we need a bigger property.
0:25:01 > 0:25:05Three bedrooms. Just having a bit more space.
0:25:05 > 0:25:10Recruitment company owner Vicky and painter and decorator James
0:25:10 > 0:25:15hoped to get the bulk of it done in six weeks. The schedule was tight
0:25:15 > 0:25:20because a tenant was moving in to their old property. 4.5 months later, we're back
0:25:20 > 0:25:23to see how they got on.
0:25:25 > 0:25:30In the living room, they've removed the chimney and plastered over the bricks
0:25:30 > 0:25:34for a fresh, contemporary feel to their living space.
0:25:36 > 0:25:43A wall has been knocked down between the kitchen and dining room for a more modern kitchen/diner.
0:25:43 > 0:25:49It's now greatly improved and fitted out in a stylish black and chrome finish.
0:25:50 > 0:25:56It was out with the old-fashioned electric white cooker and in with a fantastic range oven.
0:25:56 > 0:26:00We started off taking the wall out, which was here,
0:26:00 > 0:26:06separating the dining room and kitchen. I took the pantry wall out next to the back door.
0:26:06 > 0:26:10I took the wall out here, which was the old boiler and hot water tank.
0:26:10 > 0:26:17And the chimney breast. I took it from the roof down for extra room in the bathroom and the kitchen.
0:26:17 > 0:26:22It gave us all this extra space. And then a brand-new kitchen, new re-wire,
0:26:22 > 0:26:25essentially, everything's new.
0:26:25 > 0:26:31Upstairs, the master bedroom was given a luxurious facelift.
0:26:33 > 0:26:38The second bedroom is the perfect size for Isaac's new nursery,
0:26:38 > 0:26:44whilst the third bedroom has been converted into an ample dressing room for Vicky.
0:26:44 > 0:26:48I wonder how long it'll take before Isaac's toys creep in here!
0:26:48 > 0:26:53And remember that pokey, outdated bathroom? It's not any more.
0:26:53 > 0:26:58It's stylish and sleek and, if my eyes don't deceive me, bigger too.
0:26:58 > 0:27:04What James did to create more space in the bathroom was knock the chimney breast out from the roof,
0:27:04 > 0:27:09brought it all the way down, so we knocked this section out.
0:27:09 > 0:27:15Then it allowed us to put a full-size bath in here. We also put in a new shower.
0:27:15 > 0:27:21We wanted to put that into the wall so you didn't see any of the piping. So that's gone in as well.
0:27:21 > 0:27:28- We put some spotlights in just to finish it off.- It really has been brought into the 21st century,
0:27:28 > 0:27:31so are they happy with it now?
0:27:31 > 0:27:37- Yeah, I think we are.- Definitely. - With the space that we've got, we've tried to maximise it.
0:27:37 > 0:27:42By taking the chimney out, we achieved a bigger bathroom, bigger kitchen,
0:27:42 > 0:27:45and we got the kitchen/diner.
0:27:45 > 0:27:52They seem to have got everything they hoped for, but did they stick to their timescale of six weeks?
0:27:52 > 0:27:57Pretty much, yeah. We had to be out of our property by a certain date.
0:27:57 > 0:28:03- We gave ourselves that deadline and stuck to it. It was a bit of a mission, getting it done...- Yeah.
0:28:03 > 0:28:11On the day we moved in, we had about ten people here. I was laying the floor, somebody fitted the kitchen.
0:28:11 > 0:28:15Unloading the vans. Because it had to be suitable for Isaac as well.
0:28:15 > 0:28:21So there was no possible way we could move in with things hanging.
0:28:21 > 0:28:27It had to be suitable for a baby to live in, so we had to get it done straight away.
0:28:27 > 0:28:33Then we had tenants for our other property, so the timescales were really tight,
0:28:33 > 0:28:36but we managed it. I'm really happy.
0:28:36 > 0:28:43Baby Isaac seems happy with his new pad, too, so what have Vicky and James got left to do?
0:28:43 > 0:28:49The garden we need to get sorted. Particularly in the front. We want to get two cars in.
0:28:49 > 0:28:54- We're hoping to pave that.- Yeah. - Eventually. We'll do that next year.
0:28:54 > 0:29:00And also possibly extend it at the back maybe to get a bigger living room and bigger kitchen
0:29:00 > 0:29:05and possible utility room, but that's in the future.
0:29:05 > 0:29:10So the grand plans for an extension and driveway have been put on hold for the moment.
0:29:11 > 0:29:19Vicky and James have stuck to their original budget and spent £15,000, including fees, on the renovation.
0:29:19 > 0:29:27Added to the purchase price of £160,500, that makes a total outlay of just over £175,000.
0:29:29 > 0:29:34We asked two local property experts to give us their views
0:29:34 > 0:29:39and tell us if Vicky and James' changes have added any value.
0:29:40 > 0:29:44Having come back for a quick look, there's been lots of transformation.
0:29:44 > 0:29:48I remember seeing it as an unmodernised house.
0:29:48 > 0:29:53They've done a good job with it and made it very 21st century.
0:29:53 > 0:29:57What's good about it, apart from what they've done,
0:29:57 > 0:30:01is the fact that it looks quite a good size from the outside.
0:30:01 > 0:30:04Always good to draw people in.
0:30:04 > 0:30:09The couple always intended this to be their family home,
0:30:09 > 0:30:13but if they were to rent it out, how much could it achieve per month?
0:30:13 > 0:30:20As far as rental is concerned, it's got a rental value of £575-£600 per calendar month.
0:30:20 > 0:30:24This isn't usually the type of property you'd see for rent.
0:30:24 > 0:30:29There's not going to be a great return on investment,
0:30:29 > 0:30:33but if this was on the rental market I'd imagine you could get £750.
0:30:33 > 0:30:37Yeah, that's OK. Well, the £750 one is better.
0:30:37 > 0:30:43So they're happy with that, but if they decided to sell, what could the house go for,
0:30:43 > 0:30:48bearing in mind their total spend of just over £175,000?
0:30:49 > 0:30:56If it went on the market for sale, it would have an asking price of about £195,000
0:30:56 > 0:31:00and would achieve fairly close to that.
0:31:00 > 0:31:07From a sales point of view, I think if it was on the market you'd advertise around £200,000.
0:31:07 > 0:31:12- Oh, that's great! Definitely. - Yeah, that's all right. As long as we haven't lost money!
0:31:12 > 0:31:17Now the hard work's finished, what are their plans?
0:31:17 > 0:31:21Now that we've done everything and still made money on the house,
0:31:21 > 0:31:27I think we'll want to extend and then give it ten or so years and maybe move again.
0:31:27 > 0:31:30Yeah, brilliant result.
0:31:41 > 0:31:48I'm in Barnsley, in Yorkshire, on the edge of the Pennines, and a jolly lovely spot it is, too.
0:31:48 > 0:31:54Famous for the Barnsley chop, which isn't a martial arts manoeuvre, but a cut of meat.
0:31:54 > 0:31:58There are also some lovely suburbs, one of which is Wombwell,
0:31:58 > 0:32:02which is where the property I'm here to see is located.
0:32:02 > 0:32:07Wombwell is five miles from Barnsley and 12 miles from Sheffield,
0:32:07 > 0:32:10so it's ideal for a short commute by train.
0:32:10 > 0:32:17There's no doubting the fact that times are tough, especially for first-time buyers in the UK,
0:32:17 > 0:32:23especially when recent figures say that the average amount of money you have to raise for a deposit
0:32:23 > 0:32:29is £37,000. Well, not if you buy around here.
0:32:29 > 0:32:33Because this is a perfectly reasonable two-bed mid-terrace
0:32:33 > 0:32:39and it had a guide price of £38,000. That's more like it.
0:32:40 > 0:32:43From the outside, this property seems to be in good order
0:32:43 > 0:32:49with exposed brickwork and double-glazed windows.
0:32:49 > 0:32:55So what does that kind of money get you? Well, you might be pleasantly surprised, actually.
0:32:55 > 0:33:02Through the front door into your front sitting room. A bit dated, but it doesn't look too bad.
0:33:02 > 0:33:08Through here to your kitchen. Here's where you could spend money and make a big difference.
0:33:08 > 0:33:12It's not a bad size. Enough room for a bit of a dining table.
0:33:12 > 0:33:16But you clearly need some new units. Not a bad start.
0:33:16 > 0:33:21'It's looking pretty encouraging. The boiler appears relatively new
0:33:21 > 0:33:25'though the rest of the kitchen will need to be ripped out and replaced.
0:33:25 > 0:33:31'But for what was a £38,000 guide price, it's not too shabby at all.'
0:33:31 > 0:33:36So upstairs two bedrooms and, really great news, the bathroom.
0:33:36 > 0:33:42That was probably downstairs, but somebody's moved it up here, which is fantastic.
0:33:42 > 0:33:46You lose a bit of room, but the advantages outweigh that.
0:33:46 > 0:33:50Radiator here. Odd place to have it. Normally they're under the window,
0:33:50 > 0:33:55and that could be partly responsible for this - signs of some damp.
0:33:55 > 0:34:02My thoughts are, though, that's nothing too serious. It could just be water coming in
0:34:02 > 0:34:07and dripping down to the wall. A radiator would get rid of that.
0:34:07 > 0:34:11So all in all, there's nothing wrong with this house.
0:34:11 > 0:34:15# There's nothing wrong with you
0:34:15 > 0:34:18# There's nothing wrong... #
0:34:18 > 0:34:23Apart from double-checking the damp, there's not much wrong with this.
0:34:23 > 0:34:29It's got an upstairs bathroom, reasonably-proportioned kitchen and even some outside space.
0:34:29 > 0:34:36Well, at the rear of the property a small-ish garden, but it's a nice additional feature to have.
0:34:36 > 0:34:42Remnants of some kind of an outbuilding here. Would it be worth an extension?
0:34:42 > 0:34:48What's interesting is if you look down the row of adjoining properties, nobody's built one.
0:34:48 > 0:34:54There's probably a reason. I don't think you would get back whatever it cost to build it.
0:34:54 > 0:35:00If you're going to live here, it might create extra family space, but don't bother.
0:35:00 > 0:35:06So the relatively low guide price does tend to indicate that house prices round here aren't high
0:35:06 > 0:35:12and the ceiling value is relatively low. So if you spend too much, it won't be worth it
0:35:12 > 0:35:17in terms of your potential return. But to find out more,
0:35:17 > 0:35:20we asked a local estate agent for his take on it.
0:35:20 > 0:35:27We're deep in a former mining community. This was typical to house miners and their families.
0:35:27 > 0:35:29It's in need of renovation.
0:35:29 > 0:35:33But as a project it would do quite nicely.
0:35:33 > 0:35:39So after a refurbishment, how much could this house - guided at £38,000 - be worth?
0:35:39 > 0:35:44I would put this on the market for £52,950.
0:35:44 > 0:35:50Taking account of renovation costs and the usual expenses, there's not much profit to be made,
0:35:50 > 0:35:53but rental could be much better.
0:35:53 > 0:35:59It would achieve somewhere in the order of about £375 per calendar month.
0:35:59 > 0:36:06With a healthy demand for rental properties, letting it out might be the most attractive option here.
0:36:07 > 0:36:13If you're looking to add masses of value, it's probably not for you,
0:36:13 > 0:36:18but as a good little rental unit, it ticks all the boxes.
0:36:18 > 0:36:21Let's see who bought it.
0:36:26 > 0:36:30We go north to Barnsley now, Wombwell to be precise.
0:36:30 > 0:36:35A two-bedroom, inner terrace house. Who'll start me at £25,000? Come on!
0:36:35 > 0:36:40Surely somebody out there... Thank you, thank you.
0:36:40 > 0:36:45A very discerning bidder. £25,000. We've got a little way to go. Let's see how far.
0:36:45 > 0:36:4826, anybody? 26,000?
0:36:48 > 0:36:53Thank you. Another discerning bidder. 27, shall we say?
0:36:53 > 0:36:5628. 29?
0:36:56 > 0:36:5929, thank you.
0:36:59 > 0:37:0130? 31?
0:37:01 > 0:37:0232?
0:37:02 > 0:37:0533? 34?
0:37:05 > 0:37:0735?
0:37:07 > 0:37:1034 and a half?
0:37:10 > 0:37:1234 and a half. 35?
0:37:12 > 0:37:1435,000. 35 and a half?
0:37:14 > 0:37:19£35,000 down here, sat down. At £35,000.
0:37:21 > 0:37:2335 and a half. 36?
0:37:25 > 0:37:2836 and a half? 37?
0:37:28 > 0:37:3137 and a half?
0:37:31 > 0:37:3438? 38 and a half?
0:37:34 > 0:37:38No. At £38,000. Sat down at £38,000.
0:37:38 > 0:37:43For the first time, then. Last chance if you've come for Wombwell.
0:37:43 > 0:37:49Sat down. For the second time. Third and last time. Sold, sir. Thank you very much.
0:37:49 > 0:37:56For spot-on the guide price of £38,000, the successful bidders were local developers Paul and David.
0:37:56 > 0:38:02'I met up with them to find out what attracted them to this two-up, two-down.'
0:38:02 > 0:38:05Good to meet you both. Congratulations.
0:38:05 > 0:38:12- Tell me why you wanted to buy this. - We've bought quite a few here and did one round the corner.
0:38:12 > 0:38:16We saw it at the auction and it was ideal.
0:38:16 > 0:38:20- So why this area particularly? - Very strong rentals.
0:38:20 > 0:38:26There's plenty of people living here. We get lots of inquiries for this area,
0:38:26 > 0:38:29so it's really just what we want.
0:38:29 > 0:38:34- Is this something you do a lot of? - Yes.- A business, is it?
0:38:34 > 0:38:39David's been in property for 12 years, me only the last three.
0:38:39 > 0:38:43- This is our third at auction this year.- Right.
0:38:43 > 0:38:47Paul's a financial adviser so he looks after the finances,
0:38:47 > 0:38:51including running the property investment arm of their business.
0:38:51 > 0:38:56David's more hands on and will project manage this job.
0:38:56 > 0:39:00- What things do you look for? - Mainly terraced type houses.
0:39:00 > 0:39:04And semis. Nothing bigger than a three-bedroom semi.
0:39:04 > 0:39:08- Our average property, the market value is £70,000-£80,000.- Right.
0:39:08 > 0:39:16We've done some new developments as well, but when we're looking at auction, it's mainly this type
0:39:16 > 0:39:21- because of the area.- Right. Is the idea to sell it on or rent it out?
0:39:21 > 0:39:28Yeah, we actually... we sell them on to investors, but continue to manage the properties
0:39:28 > 0:39:34- and currently we look after 45. - Right, so you get a double hit. - Yeah.
0:39:34 > 0:39:38You sell it on and get management fees for looking after it.
0:39:38 > 0:39:45This is a really interesting business model. Not only do they sell properties on quite easily,
0:39:45 > 0:39:52but it also allows people who want to invest to join with other investors to buy a stake in it
0:39:52 > 0:39:56and get a share of the rental income.
0:39:56 > 0:40:02So Paul and David benefit by selling the property as well as managing it on the rental market.
0:40:05 > 0:40:09So what are you hoping this one sells for?
0:40:09 > 0:40:15The one round the corner that we did that we bought at auction earlier in the year,
0:40:15 > 0:40:21- that sold for £76,500.- Right. - And we bought that for £38,000. - Oh, wow.
0:40:21 > 0:40:23- A good return on your investment. - Yeah.
0:40:23 > 0:40:28In order for that to happen here, this house needs refurbished first.
0:40:28 > 0:40:31So what's David's strategy?
0:40:32 > 0:40:36Initially, rip everything out. It's going to have a rewire.
0:40:36 > 0:40:41We think the boiler's OK, but we'll replace the radiators.
0:40:41 > 0:40:45New kitchen, new bathroom, re-plaster.
0:40:45 > 0:40:48Fix the joinery, carpet it all.
0:40:48 > 0:40:52Any issues with this property or is it fairly straightforward?
0:40:52 > 0:40:58We've got a little bit of damp. We need to investigate, see where it's coming from,
0:40:58 > 0:41:02- cure it, then I think everything is straightforward.- Right.
0:41:02 > 0:41:08If you go in any of our properties, they're exactly the same. Same kitchen, bathroom, paint,
0:41:08 > 0:41:14carpet, everything. We can use what's left in one on the next one.
0:41:14 > 0:41:17What's the budget for sorting it?
0:41:17 > 0:41:23- On this particular one, we think around £8,000, £9,000 will see this finished.- Oh, wow.
0:41:23 > 0:41:27- So what about timescales? - Six weeks.
0:41:27 > 0:41:30- Bing, bang, boom. And on to the next one.- Yeah.
0:41:30 > 0:41:34It's obviously successful. Long may it continue.
0:41:34 > 0:41:39- We look forward to seeing it. - Thank you.- All the best.- Thank you.
0:41:39 > 0:41:46David and Paul have clearly got a successful formula and will stick to it when sorting this place out.
0:41:46 > 0:41:52But that budget does seem a bit tight and in terms of resale value, are they being overoptimistic?
0:41:52 > 0:41:55You can find out later in the show.
0:41:58 > 0:42:06Once you've bought your property, the hard work really starts and you've got to prepare for surprises.
0:42:06 > 0:42:13So have today's buyers uncovered any hidden treasures or unearthed any hidden pitfalls? Let's find out.
0:42:15 > 0:42:18# London
0:42:18 > 0:42:22# Keep on going back to London... #
0:42:25 > 0:42:29Back now to Canning Town in East London
0:42:29 > 0:42:34where this first-floor flat sold at auction for £131,000.
0:42:34 > 0:42:40It was bought by property developer Winston, who hoped to completely renovate it in just six weeks.
0:42:40 > 0:42:44He was confident his softly softly style would prove fruitful.
0:42:44 > 0:42:51I have my way. I don't scream, I don't shout, but I'm looking to get it done in that time.
0:42:51 > 0:42:55You're very calm. I have a lot of faith in you!
0:42:55 > 0:43:02So, cool, calm and collected, but 12 weeks on, as you can probably tell from Winston's outfit,
0:43:02 > 0:43:05he's not quite finished the job.
0:43:07 > 0:43:12But the fact the work is not completely done is not down to any lack of effort.
0:43:12 > 0:43:18In fact, Winston decided to do a much bigger renovation than he planned originally.
0:43:18 > 0:43:24My plans were changed. Initially, we were going to go for a light refurbishment, just redecorate.
0:43:24 > 0:43:27We ended up stripping every wall.
0:43:27 > 0:43:32In doing that, we realised some of the plaster was basically beyond repair
0:43:32 > 0:43:37and in many places we took the walls back to brick.
0:43:37 > 0:43:43We then re-plastered every single wall in here and we've changed all the ceilings.
0:43:43 > 0:43:47We put new coving up. We're now in the middle of decorating.
0:43:47 > 0:43:52# I guess I'll have to change my plans... #
0:43:52 > 0:43:56But Winston's change of plans didn't stop there.
0:43:56 > 0:44:02# I guess I'll have to change my plans... #
0:44:02 > 0:44:09When I first saw this small shower room, I thought you could open it up, so I'm pleased to see
0:44:09 > 0:44:11he's done just that.
0:44:14 > 0:44:21Well, previously in here this was just one small shower room. It was very, very narrow
0:44:21 > 0:44:25and there used to be the stairwell here down into the garden.
0:44:25 > 0:44:32We decided to open it all up and made it one big open space, a full-size family bathroom.
0:44:32 > 0:44:36Once we finish the tiling, I think it'll be very nice.
0:44:36 > 0:44:41It's a real improvement and a smart bit of rejigging.
0:44:41 > 0:44:46To make space for the bathroom, he's covered the old stairway
0:44:46 > 0:44:51and built a new external staircase leading out from the kitchen.
0:44:59 > 0:45:06The staircase still needs a bit of work and there are lots of jobs that Winston hasn't yet completed.
0:45:06 > 0:45:10The work we've got to do is just to finish off the bathroom.
0:45:10 > 0:45:15It's almost there. Probably a day's work. We'll then start the kitchen.
0:45:15 > 0:45:18That should take 2-3 days to do.
0:45:18 > 0:45:25We've got to put laminate flooring throughout and we've got to finish the decoration.
0:45:25 > 0:45:30I would imagine now we've got 7-10 days' worth of work to do.
0:45:30 > 0:45:33And then it should be completed.
0:45:33 > 0:45:38By the time he's finished here, it will have taken 13 weeks.
0:45:38 > 0:45:42That's more than double his original six-week target.
0:45:42 > 0:45:47# I got double trouble I got double trouble
0:45:47 > 0:45:54# I got double trouble Twice as much as anybody else Oh, yeah... #
0:45:54 > 0:45:58But it's not only the restructuring of the flat that's taken longer.
0:45:58 > 0:46:04He's also rewired all the electrics and put in central heating and double glazing throughout.
0:46:04 > 0:46:08# Twice as much as anybody else, oh, yeah... #
0:46:08 > 0:46:13So surely all this extra work must have seriously affected his budget.
0:46:13 > 0:46:17Initially, my budget was £12,000.
0:46:17 > 0:46:20We're at the moment up to £16,100.
0:46:20 > 0:46:26I would estimate another £1,000 to go just to finish off the final touches
0:46:26 > 0:46:29so just over £17,000.
0:46:29 > 0:46:35Usually Winston leaves the work to the builders, but he's been busy helping out with labouring
0:46:35 > 0:46:38and doing some of the smaller jobs.
0:46:41 > 0:46:47But how did he get on with that potentially massive job in the bedroom - those cracks in the walls?
0:46:47 > 0:46:49# Crack me up
0:46:50 > 0:46:53# You really, really do... #
0:46:53 > 0:46:59They were nothing to worry about - just surface cracks so they were repaired and decorated over.
0:46:59 > 0:47:07Winston spent over £4,000 extra on the renovation, so does he think it was worthwhile?
0:47:07 > 0:47:13Obviously it's cost me more money, but in the long run that will add value to the property,
0:47:13 > 0:47:16so I'm not disappointed with that.
0:47:16 > 0:47:20He bought the house for £131,000 plus the usual expenses
0:47:20 > 0:47:25and has spent more than £16,000 on the renovations so far.
0:47:25 > 0:47:29What do two local property experts make of his improvements?
0:47:29 > 0:47:32My first impressions are
0:47:32 > 0:47:36that he's done the core work very well. I like the layout.
0:47:36 > 0:47:40He's made the access to the garden quite easy.
0:47:40 > 0:47:43And the bathroom's a bit bigger.
0:47:43 > 0:47:48It has been up to a neutral standard and should appeal to a wider range
0:47:48 > 0:47:51of purchasers or tenants.
0:47:51 > 0:47:57I also think that the new refurbishments will add to the overall value.
0:47:57 > 0:48:02How much rent do the experts think Winston could charge?
0:48:02 > 0:48:08Once the works have been completed, the property should rent for £1,000 per calendar month.
0:48:08 > 0:48:15Once fully completed, I would put the property on the rental market for £1,000-£1,050 per month.
0:48:15 > 0:48:21That is bang on what I was expecting. I was estimating about £1,000.
0:48:21 > 0:48:26So I'd be happy. I am going to rent it out, so that would be ideal.
0:48:26 > 0:48:31Those rental figures would give him a healthy annual yield of 8%.
0:48:31 > 0:48:35Whilst he's sticking to rental now, he must be curious to find out
0:48:35 > 0:48:39how much extra sale value his work has added to the flat.
0:48:39 > 0:48:44Remember, his total outlay here has been around £148,000.
0:48:46 > 0:48:52Once the property is fully completed, I would market it between £160,000 and £165,000.
0:48:52 > 0:48:58Once the works have been completed, we would look to market the property for £165,000.
0:48:58 > 0:49:01160, 165 is a little bit low, I believe.
0:49:01 > 0:49:06I think once we finish all the work and they can see a finished project,
0:49:06 > 0:49:12when I get it revalued it should be higher than that. I'm pretty confident because I know a property
0:49:12 > 0:49:18down the road which has been valued higher than that and it has not yet been updated,
0:49:18 > 0:49:23the kitchen and bathroom. So I'm quite confident I'll exceed 165.
0:49:28 > 0:49:34It seems that Winston's change of career from his previous job as an accountant is paying off.
0:49:34 > 0:49:40He's done his sums right and this latest addition should see a great return in the future.
0:49:40 > 0:49:45It sounds like going back to his old job has been ruled out completely.
0:49:45 > 0:49:51There's nothing like doing something you enjoy doing. Waking up, it doesn't feel like work.
0:49:51 > 0:49:58I get such a buzz about it. I like to see the before and after and the transformation.
0:49:58 > 0:50:02I absolutely love it. I'm looking forward to my next property.
0:50:06 > 0:50:13Just outside Barnsley in Wombwell, I saw a fairly standard two-up, two-down terraced house.
0:50:13 > 0:50:19Although it was a little battered round the edges, fundamentally there wasn't much wrong with it.
0:50:20 > 0:50:28- Sold, sir. Thank you very much. - And yet it was sold for just £38,000 to developing team David and Paul.
0:50:28 > 0:50:34They have a particular way of approaching all their property purchases.
0:50:34 > 0:50:42We sell them on to investors, then manage the properties for them. Currently we look after 45.
0:50:42 > 0:50:47- So you get a double hit.- Yeah. - You sell it on and get management fees for looking after it.
0:50:47 > 0:50:52On the face of it, this property fits their business model perfectly.
0:50:52 > 0:50:56It was relatively cheap, yet had strong rental potential.
0:50:57 > 0:51:02With a 6-10 week timescale and a budget just short of £10,000,
0:51:02 > 0:51:06David and his team of tradesmen were seeing to the renovation.
0:51:06 > 0:51:12Paul was keeping an eye on the finances and looking for possible investors.
0:51:12 > 0:51:18Less than two months later, we're back to see if their 45th property will get the investors queuing up.
0:51:21 > 0:51:26Well, the outside might not be significantly different,
0:51:28 > 0:51:31but inside is now modern and bright.
0:51:38 > 0:51:44There's a new contemporary kitchen, just right for the rental market.
0:51:44 > 0:51:46Basically, we stripped it all out.
0:51:46 > 0:51:50There was only a couple of units and an old cooker anyway.
0:51:50 > 0:51:54We took it back to the bare brick, re-plastered everything,
0:51:54 > 0:52:01rewired. Put a new kitchen in as you can see, re-tiled and decorated it, basically.
0:52:01 > 0:52:07And to go with the finished downstairs rooms, the two bedrooms were completely refurbished.
0:52:07 > 0:52:13Despite the damp being a thing of the past in the large bedroom, the smaller back bedroom presented
0:52:13 > 0:52:16more problems than anticipated.
0:52:16 > 0:52:20We found that this wall was a really cold wall.
0:52:20 > 0:52:27When we took the paper off, the plaster was coming off. We stripped it back to brick
0:52:27 > 0:52:33and found a single-skimmed wall so we damp-proofed it, insulated it, reboarded it,
0:52:33 > 0:52:40skimmed it, painted, new skirtings. It's made the room a lot warmer in the end.
0:52:40 > 0:52:46The extra work may have turned up the heat, but David kept his cool and stuck to his deadline.
0:52:46 > 0:52:52He finished the whole refurbishment in just seven weeks. While David's been rolling up his sleeves,
0:52:52 > 0:52:58Paul's been busy with their other 44 properties, so how often were they both here?
0:52:58 > 0:53:00Every day for me.
0:53:00 > 0:53:06I probably haven't been on for about four weeks until this week.
0:53:06 > 0:53:09So I've seen a massive change.
0:53:11 > 0:53:14Internally, the house has been completely finished,
0:53:14 > 0:53:18but the outside area still has a way to go.
0:53:18 > 0:53:25We've not done a lot outside because of the recent weather. We've still got to do a bit of painting outside.
0:53:25 > 0:53:32We've tidied the garden up, just a little bit. You can see the path now, which you couldn't before.
0:53:32 > 0:53:38Once the weather improves, the plan is to re-turf the garden and tidy up the fence and gate.
0:53:38 > 0:53:43Then they need to find a tenant and some investors.
0:53:43 > 0:53:45How much has it all cost?
0:53:45 > 0:53:51- The budget was, I think, £10,000. - I think we've come just under that.
0:53:51 > 0:53:55Yeah, we've come just under. With fees, just slightly over.
0:53:55 > 0:54:00A renovation cost of £10,000 on top of a purchase price of £38,000
0:54:00 > 0:54:07along with the usual fees and expenses, brings their total outlay to just over £50,000.
0:54:08 > 0:54:14So has this been a good investment in the current market? What do two local estate agents reckon?
0:54:16 > 0:54:19A vast improvement on last time.
0:54:19 > 0:54:24It looks ready to move into, which is the ideal scenario.
0:54:24 > 0:54:29I think the owner's done a good job. Nice kitchen, gas, double glazed.
0:54:29 > 0:54:34I don't think there's anything left to do. Move the furniture in.
0:54:34 > 0:54:41I would have put a shower in the bathroom. They've fully tiled, but people have busy lives
0:54:41 > 0:54:44and don't want a bath every morning.
0:54:44 > 0:54:48Despite the lack of a shower, this was not money down the drain.
0:54:48 > 0:54:54The way their business model works is that they sell the house to a number of investors
0:54:54 > 0:54:58who then have a share of it and earn their return of rental income.
0:54:58 > 0:55:05They've spent £50,000 themselves here so what could they hope to get from their investors?
0:55:05 > 0:55:11Going to a landlord investor, I'd say its value is about £52,000.
0:55:11 > 0:55:15In my opinion, I feel the value of this property would be £50,000.
0:55:15 > 0:55:20I think valuers, especially in the current climate,
0:55:20 > 0:55:24are possibly down-valuing to cover their own backs, in all honesty.
0:55:24 > 0:55:30I'd expect it to be worth a tad more, but I'm not surprised.
0:55:30 > 0:55:35In the current market, there may be little or no profit from selling,
0:55:35 > 0:55:39but the rental income potential will attract investors.
0:55:40 > 0:55:44The property would fetch £375 per calendar month.
0:55:44 > 0:55:48Quite comfortably I would have said £375 per calendar month.
0:55:48 > 0:55:53That kind of rental income could mean an impressive yield of almost 9%.
0:55:53 > 0:55:56What do the guys think of that?
0:55:57 > 0:56:02Right. A bit lower than what we've estimated.
0:56:02 > 0:56:06We've got somebody interested in the property.
0:56:06 > 0:56:13- We have told them it's 450. - In fact, since filming, not only have they got a tenant at £450,
0:56:13 > 0:56:17but they've sold the house to three investors for £66,000.
0:56:17 > 0:56:25That gives them a tidy £16,000 pre-tax profit as well as a small income from managing the property.
0:56:25 > 0:56:28So their tried and tested approach has come up trumps again.
0:56:30 > 0:56:38This is the third one we bought this year, so we'll definitely buy another, no problems at all.
0:56:38 > 0:56:44And I'd say if you've got a successful method that works, why change it?
0:56:44 > 0:56:47# The sweet smell of success. #
0:56:52 > 0:57:00- We hope you've enjoyed watching. - Join us next time for more fascinating stories.- See you then!
0:57:17 > 0:57:21Subtitles by Subtext for Red Bee Media Ltd - 2012
0:57:21 > 0:57:24Email subtitling@bbc.co.uk