0:00:02 > 0:00:05In today's more challenging markets, do you think you could hack it
0:00:05 > 0:00:08- in the world of property?- Get it right, you can earn a lot of money.
0:00:08 > 0:00:13And it can be even more rewarding to buy your home under the hammer.
0:00:38 > 0:00:42There can be some tense moments in the auction room.
0:00:42 > 0:00:44Who will make the right bid at the right time?
0:00:44 > 0:00:48Property can change people's fortune, for better or for worse.
0:00:48 > 0:00:51Here's a look at what today's buyers bought.
0:00:52 > 0:00:57'You'll need specialist equipment to view this three-bed mid-terrace in Manchester.'
0:00:57 > 0:01:02Until you're properly kitted out with masks, you don't want to be wandering around in it.
0:01:02 > 0:01:07'In London, I find the perfect use for this monster of a property.'
0:01:07 > 0:01:11This would make an ideal film location...for a horror movie!
0:01:12 > 0:01:18'And in Cardiff, this former martial arts centre has so much potential, I'm overwhelmed.'
0:01:18 > 0:01:22Wow! What an amazing space!
0:01:23 > 0:01:28'All these properties have been sold at auction and we'll find out who bought them
0:01:28 > 0:01:32- 'and what they paid for them when they went under the hammer.' - Lady's bid.
0:01:36 > 0:01:39'This is Openshaw in Greater Manchester,
0:01:39 > 0:01:42'about two miles east of the city centre.
0:01:42 > 0:01:46'In the 19th century, this was a thriving industrial heartland.
0:01:46 > 0:01:49'Nowadays, there's very little industry around here,
0:01:49 > 0:01:53'but this part of Manchester is on the up.'
0:01:53 > 0:01:59Fortunately, Openshaw falls within the East Manchester regeneration scheme
0:01:59 > 0:02:04and over the last few years there has been lots of redevelopment in the area to the housing
0:02:04 > 0:02:08and also the building of a multi-million-pound shopping centre.
0:02:08 > 0:02:11And this is the property I'm here to see. It's a three-bed mid-terrace
0:02:11 > 0:02:14at a guide price of £35,000.
0:02:14 > 0:02:17It can't be too bad for that, can it?
0:02:17 > 0:02:25'Famous last words. No sooner was I through the front door than half the ceiling came down in the back room.
0:02:25 > 0:02:27'Through no fault of mine, I hasten to add.
0:02:29 > 0:02:32'Although only one ceiling was affected,
0:02:32 > 0:02:35'the house was filled with dust.
0:02:35 > 0:02:39'It wouldn't have been a good idea to continue filming and breathe it in
0:02:39 > 0:02:42'so we regrouped round the back.'
0:02:42 > 0:02:46Well, that is what happens sometimes when you're looking round properties.
0:02:46 > 0:02:52And my advice is, if there's dust like that in a property, you really should avoid it.
0:02:52 > 0:02:57You don't know what it contains. Some ceiling materials, such as Artex, used to contain asbestos,
0:02:57 > 0:03:02and until you're properly kitted out with masks, you don't want to be wandering around in it.
0:03:02 > 0:03:05But come out here and you can see what the problems are.
0:03:05 > 0:03:10The rendering at the rear of the property is shot, that roof above the bay window has also gone,
0:03:10 > 0:03:13so before you get involved in sorting out inside,
0:03:13 > 0:03:16there's some work to do outside first.
0:03:16 > 0:03:19# I can't stand up
0:03:19 > 0:03:23# For falling down
0:03:23 > 0:03:25'Well, what about that interior?
0:03:25 > 0:03:29'Luckily, the camera crew had filmed inside before the ceiling gave way.
0:03:29 > 0:03:34'So let's see what the house looked like before it was a cloud of dust.
0:03:36 > 0:03:41'Downstairs, there are two large reception rooms and a good-size kitchen.
0:03:41 > 0:03:45'But as you can see, like the rest of the house, it's in a poor state of repair
0:03:45 > 0:03:48'and needs to be completely gutted.
0:03:48 > 0:03:52'There's no central heating in the property, just gas fires.
0:03:52 > 0:03:58'The windows are only single-glazed and in the rear reception room are signs of damp
0:03:58 > 0:04:03'and a gaping hole in the ceiling. So no prizes for guessing it was this ceiling that fell through.
0:04:05 > 0:04:08'Upstairs isn't much better in terms of condition.
0:04:08 > 0:04:13'The bathroom is old and outdated with clear signs of damp issues.
0:04:13 > 0:04:18'The cracks in the walls of the little bedroom don't look too good
0:04:18 > 0:04:24'and as for the two main bedrooms, well those ceilings are also a cause for concern.
0:04:24 > 0:04:27'I definitely recommend having a survey done here
0:04:27 > 0:04:30'and getting to the root of the problems.
0:04:30 > 0:04:33'But this is a good sized house with large rooms
0:04:33 > 0:04:37'and there's also a substantial cellar, great for extra storage.
0:04:37 > 0:04:41'And all for a guide price of just £35,000.
0:04:41 > 0:04:45'Because of the dust in the house, we went to see a local estate agent
0:04:45 > 0:04:49'in his office to get his take on the place.
0:04:49 > 0:04:51'He'd organised the pre-auction viewings.'
0:04:51 > 0:04:54It's a terrific three-bedroom terraced house.
0:04:54 > 0:04:58The rooms are great sizes, two big reception rooms, good size kitchen,
0:04:58 > 0:05:01three bedrooms and a bathroom, it's a terrific house.
0:05:02 > 0:05:07The property obviously needs some work doing to it.
0:05:07 > 0:05:10It's not in a habitable state which is why it ended up at the auction.
0:05:10 > 0:05:14'But with the right buyer prepared to do some work here,
0:05:14 > 0:05:18'once renovated, what could it make on the rental or resale markets?'
0:05:18 > 0:05:21If we were looking at that property to rent,
0:05:21 > 0:05:24I would be looking at £500 per calendar month.
0:05:24 > 0:05:28If we were selling it, it would be around £70,000.
0:05:28 > 0:05:31'So a potential value of £70,000.
0:05:31 > 0:05:37'Given its guide price was £35,000, there could be money to be made here.'
0:05:37 > 0:05:41Despite all the problems inside, I still think this is a great little property
0:05:41 > 0:05:44and if it was bought for anything like the guide price,
0:05:44 > 0:05:49there's lots of money to be made. Let's see who bought it when it went under the hammer.
0:05:51 > 0:05:54Lot 29, vacant three-bedroom terraced house.
0:05:54 > 0:05:57Where should we start this one? I've got a bid.
0:05:57 > 0:06:01Proxy bid. £20,000. 20,000 I have.
0:06:01 > 0:06:03Do I see 22 anywhere?
0:06:03 > 0:06:0520 I have. 22. 22,000.
0:06:05 > 0:06:0824 I have. 26. 26?
0:06:08 > 0:06:1126,000. 28 I have.
0:06:11 > 0:06:1328,000. Give us 30?
0:06:13 > 0:06:1730 at the back. 31. 32. 33.
0:06:18 > 0:06:21At 33,000. 33,000. 34.
0:06:21 > 0:06:2434,000. I've got 35. At 36 here. 36.
0:06:24 > 0:06:27I have 36,000. It's in the market.
0:06:27 > 0:06:3037. 37,000. 38 anywhere?
0:06:30 > 0:06:3237 and a half, new bidder.
0:06:32 > 0:06:3538. 38,000 then. 38 and a half?
0:06:35 > 0:06:3838 and a half. 39?
0:06:38 > 0:06:4139 and a half. 40.
0:06:41 > 0:06:4440,000. 40,500.
0:06:44 > 0:06:4740,500. 41? 41,000.
0:06:47 > 0:06:5141 and a half. 41 and a half, new bid.
0:06:51 > 0:06:5341 and a half. 42.
0:06:53 > 0:06:5542,000. 42 and a half. 43.
0:06:55 > 0:06:5943. At 43. 43 and a half. 44.
0:06:59 > 0:07:01At 43 and a half, then, for the first time.
0:07:01 > 0:07:04It's your bid. At 43 and a half for the second time.
0:07:04 > 0:07:07For the third time at 43 and a half thousand.
0:07:07 > 0:07:09That's yours, paddle 305.
0:07:09 > 0:07:15'That successful bid of £43,500 was made by would-be developer Khan.
0:07:15 > 0:07:19'He works in the building trade in property maintenance.
0:07:19 > 0:07:23'His son, Sahil, also looks pretty pleased with the purchase.'
0:07:23 > 0:07:26# It's a family affair
0:07:26 > 0:07:30'Khan, his wife Jabena, son Sahil and baby Dean
0:07:30 > 0:07:33'have all come to check the place out.
0:07:35 > 0:07:38'Sahil took Dean off to explore the local area
0:07:38 > 0:07:41'and to avoid any more collapsing ceiling worries
0:07:41 > 0:07:47'whilst I met Khan and Jabena at the back of the property to find out about their plans.'
0:07:49 > 0:07:53- Khan and Jabena, lovely to meet you. - You, too.- Congratulations. - Thank you.
0:07:53 > 0:07:55Tell me why you wanted to buy this place.
0:07:55 > 0:08:00Well, we've always been interested in going into property development.
0:08:00 > 0:08:04It has always been a motivation but we didn't really have the funds to do it.
0:08:04 > 0:08:08- Right.- But now, with the great help of our families,
0:08:08 > 0:08:12we've been able to buy this property, it's our first purchase at auction
0:08:12 > 0:08:14- so we're really looking forward to it.- Oh, great!
0:08:14 > 0:08:18- How did you broach it with the family? "Can you lend us some dosh?" - Basically.
0:08:18 > 0:08:23We said, "We really want to have a go at this property development
0:08:23 > 0:08:26"and we're so dedicated to it, he's in the building trade,
0:08:26 > 0:08:29"so it's going to be cost effective,
0:08:29 > 0:08:33"he's going to do most of the work himself, and give us a chance."
0:08:33 > 0:08:37So my family put half in, his family put half in.
0:08:37 > 0:08:41So we've really got to prove we're going to make a profit on this
0:08:41 > 0:08:43and then eventually pay them all back.
0:08:43 > 0:08:45'So, the pressure's on, then.
0:08:45 > 0:08:49'Khan has tried his hand at property development in the past
0:08:49 > 0:08:54'but unfortunately, that time things didn't work out too well.'
0:08:55 > 0:09:01I bought a property about seven years ago and that didn't go according to plan.
0:09:01 > 0:09:06The property market wasn't right and I didn't do much research.
0:09:06 > 0:09:10I broke even on that property back then, so hopefully now,
0:09:10 > 0:09:14we've done a bit of research and everything, got it at a great price
0:09:14 > 0:09:16- and, yeah, brilliant. - We were pleased with the price.
0:09:18 > 0:09:25'They're quite right to be pleased. £43,500 is still a good buy. But there's an awful lot of work to do.'
0:09:26 > 0:09:31Tell me what you're going to do to sort it out, cos it is in a bit of a state.
0:09:31 > 0:09:36- It is.- Mostly superficial, apart from the large quantities of ceiling which have fallen down.
0:09:36 > 0:09:40The majority of work I think my husband's going to do himself.
0:09:40 > 0:09:42My son's going to be helping out.
0:09:42 > 0:09:49I'll probably help with painting and decorating, but the initial building stuff he's going to take over.
0:09:49 > 0:09:54'The couple are hoping to get everything done in just six weeks.
0:09:54 > 0:09:58'So if Khan's doing most of the work himself, there won't be any time for slacking.'
0:09:58 > 0:10:01Tell me exactly what you're going to do.
0:10:01 > 0:10:03It'll have a new bathroom suite,
0:10:03 > 0:10:07nice new tiles, new kitchen.
0:10:07 > 0:10:11The basement I'm not going to do too much to, just a lick of paint.
0:10:11 > 0:10:15New central heating. I've got a guy coming in to do all that.
0:10:15 > 0:10:20Decorate throughout, new ceilings upstairs cos they're all bowing.
0:10:20 > 0:10:25Plastering a couple of walls and a bit of damp-proofing and hopefully...
0:10:25 > 0:10:28- Radiators, boiler.- Everything.
0:10:28 > 0:10:31- Basically everything. - The list gets longer and longer.
0:10:31 > 0:10:37'And the list does get longer, because outside they plan to go right back to the brick,
0:10:37 > 0:10:41're-render, paint the exterior and repair the windows.
0:10:41 > 0:10:47'And the budget for all the work - £12,000, with a maximum of £3,000 as contingency.'
0:10:47 > 0:10:50What's the plan when it's finished? Is it to rent it out or to sell it?
0:10:50 > 0:10:54Initially we want to sell it, see how we've done on it,
0:10:54 > 0:10:58plus we owe all that money, pay everybody back
0:10:58 > 0:11:04and then if it all goes well for us, next time round, we want to do it all on our own.
0:11:04 > 0:11:11Buy another property at auction and this time it'll all be us. We won't have to borrow anything.
0:11:11 > 0:11:14These are tough times in the property world in terms of selling.
0:11:14 > 0:11:18- What happens if you don't sell? - They we'll definitely rent.
0:11:18 > 0:11:23We'd rent it as a second option, but initially we're looking to sell.
0:11:23 > 0:11:27- Will the people you borrowed the money from be OK if you have to rent it?- Family.
0:11:27 > 0:11:30- They're brilliant.- They're not going to charge us interest.
0:11:30 > 0:11:37- It's family so...- Plus, we haven't got a mortgage to pay, so that's a massive load off our backs.
0:11:37 > 0:11:42- Right. Great. As you say, good old family rallying round.- Yeah.- Yeah.
0:11:42 > 0:11:46- Congratulations. - Thank you.- Good luck with it and I wish you all the best.
0:11:46 > 0:11:50- We look forward to seeing how you get on.- Fantastic.- Thanks.
0:11:51 > 0:11:54Well, Jabena and Khan have got themselves a great property here
0:11:54 > 0:11:59and Khan's certainly got the experience to sort it out. And thank goodness for families, eh?
0:11:59 > 0:12:01Still, a lot of work to do to sort it out.
0:12:01 > 0:12:04You can find out how they get on later in the show.
0:12:13 > 0:12:17I'm in Southwest London today in an area called Battersea.
0:12:17 > 0:12:20You might know it for the iconic power station
0:12:20 > 0:12:24but it's also home to a host of specialist shops and boutiques.
0:12:24 > 0:12:28Shoppers can find everything they need here, from fishmongers to butchers
0:12:28 > 0:12:33to aromatherapy shops and bakers. What a cool place to live!
0:12:33 > 0:12:35# Oh, oh, oh
0:12:35 > 0:12:40# Everything I wanted
0:12:40 > 0:12:42A short walk from all the shops and restaurants
0:12:42 > 0:12:45and I'm in an area that's known locally as Between The Commons.
0:12:45 > 0:12:48It's a pocket of quiet residential streets
0:12:48 > 0:12:51that lie between Clapham Common and Wandsworth Common.
0:12:51 > 0:12:55Its green credentials and proximity to all the shops
0:12:55 > 0:12:58makes this a much sought-after area.
0:12:58 > 0:13:02I'm here to see this substantial three-bedroom end-of-terrace
0:13:02 > 0:13:06and it had a guide of £625,000.
0:13:06 > 0:13:08Let's go inside and see what you get for your money.
0:13:10 > 0:13:13'At first glance, the exterior of this corner property
0:13:13 > 0:13:17'is in a terrible state and just cries out for repairs.
0:13:17 > 0:13:20'Good news for developers hoping to add value
0:13:20 > 0:13:23'but bad news if you don't have a sizable budget.
0:13:23 > 0:13:28'But there are some lovely original features remaining out here.
0:13:28 > 0:13:30'So what's inside?'
0:13:30 > 0:13:36Oh, OK, it's quite clear to me there's only one way this house can go and that is up.
0:13:36 > 0:13:39Obviously, you don't get that much for your money
0:13:39 > 0:13:41because it's in a right old state.
0:13:41 > 0:13:47But saying that, there's bags of character here and this is just how I love a house, really raw.
0:13:47 > 0:13:54You've got these beautiful doors. Look at all this amazing cornicing. You've got the old ceiling rose.
0:13:54 > 0:14:00All of this space. You've got two big rooms here which have been opened up.
0:14:00 > 0:14:04Two lovely fireplaces. It really is quite spectacular.
0:14:04 > 0:14:10Something that does concern me are the windows. You can see, there's obviously a security issue
0:14:10 > 0:14:12because there's bars on the windows.
0:14:12 > 0:14:19What I would like to do would be to get them off and think about installing some internal shutters.
0:14:19 > 0:14:22You only need to walk along the road to see most houses have done that.
0:14:22 > 0:14:27It's a much better look. But it's a great house. I can't wait to explore the rest of it.
0:14:31 > 0:14:37'As you move through the property, you can see this former beauty is long past its prime
0:14:37 > 0:14:42'and yearning to be restored. There's no plaster on the wall, chronic signs of rot,
0:14:42 > 0:14:45'plus a rather dingy cellar, and that's just for starters.'
0:14:45 > 0:14:51This would make an ideal film location for a horror movie!
0:14:51 > 0:14:56And the kitchen is placed right at the end of the house. Hm.
0:14:56 > 0:14:58Fancy a cuppa?
0:14:59 > 0:15:01'Mm, I think I'll pass this time.
0:15:01 > 0:15:07'But can this house, that went to auction guided at £625,000, get any more horrific?
0:15:07 > 0:15:09'Well, in a word, yes.
0:15:09 > 0:15:16'Halfway up the stairs and at the back, the bathroom and separate toilet are completely trashed.
0:15:16 > 0:15:18'It's all got to go.
0:15:18 > 0:15:24'The patchwork wallpaper in this bedroom might have looked cheerful once upon a decade,
0:15:24 > 0:15:28'but I suspect it's hiding a multitude of sins now.
0:15:28 > 0:15:33'Continuing on up, there are two further decent-sized bedrooms, good doubles I'd say.
0:15:33 > 0:15:38'But they all have a worryingly similar feature.'
0:15:38 > 0:15:43I'm no timber expert but this to me looks like a serious case of dry rot.
0:15:43 > 0:15:47Now, dry rot sounds serious and that's because it is.
0:15:47 > 0:15:49It's a wood-destroying fungus.
0:15:49 > 0:15:52Now, it's not always confined to just wood.
0:15:52 > 0:15:56It does have the ability to travel through other building materials.
0:15:56 > 0:15:59So it can spread quickly through the building.
0:15:59 > 0:16:05If left untreated, it can cause widespread structural damage. Scary.
0:16:06 > 0:16:11'With specialist help, you can stop dry rot in its tracks and treat it.
0:16:11 > 0:16:13'One thing you can't do is ignore it.
0:16:13 > 0:16:18'But it seems that for every piece of bad news here, there's some good,
0:16:18 > 0:16:23'because onwards and quite literally upwards, I think there's some potential for a loft extension.'
0:16:23 > 0:16:26The average cost is about £35,000,
0:16:26 > 0:16:32so it's a significant outlay but it could add as much as 15 percent to the value of this house.
0:16:32 > 0:16:34So it's definitely worth considering.
0:16:34 > 0:16:38And if you can squeeze a bathroom up there as well, you're laughing.
0:16:39 > 0:16:42'As for the garden, well, that needs serious attention.
0:16:42 > 0:16:47'Not only has the greenery grown wings and started sprouting out of the house itself,
0:16:47 > 0:16:52'but there's a whopping great tree stump out the back that needs to be removed.
0:16:52 > 0:16:57'The roots might be far-reaching, which would undermine the stability of the building.
0:16:57 > 0:17:01'So a challenging property with great potential.
0:17:01 > 0:17:03'What does the local estate agent think?'
0:17:03 > 0:17:07This is a very popular area, lots of shops, coffee bars, restaurants
0:17:07 > 0:17:11and there's a real vibe and style of living here that people do like.
0:17:11 > 0:17:13It's an end-of-terrace Victorian house,
0:17:13 > 0:17:16fantastic in its day with the coving cornice,
0:17:16 > 0:17:20still got the original fireplaces, marble and granite, fantastic.
0:17:20 > 0:17:24Doesn't get much better than that. Though it does need some TLC.
0:17:24 > 0:17:29Looking down the road, you can see there's been a lot of conversions done to the lofts and extensions.
0:17:29 > 0:17:34It would be a good idea cos it would extend the property from a three to a four or five bedroom.
0:17:34 > 0:17:39'The property went to auction guided at £625,000.
0:17:39 > 0:17:44'So after all the remedial work's been done, how much rental income could it generate?'
0:17:44 > 0:17:51The rental on this property as a three-bed would probably be around the £2,500 mark per calendar month.
0:17:51 > 0:17:55As a four to five, it'd be £3,000 to £3,500.
0:17:55 > 0:18:01'That's a real hike in price. And this is mirrored in the resale value, as well.
0:18:01 > 0:18:04'Renovated as a three-bed property, the new owner could achieve
0:18:04 > 0:18:08'as much as £850,000.
0:18:08 > 0:18:12'But there's a big increase if you were to start adding extra living space.'
0:18:12 > 0:18:16If converted to a four or five-bed, the price does go up quite rapidly.
0:18:16 > 0:18:21You'd be looking at £1 million plus, maybe £1.1 million, on a resale.
0:18:21 > 0:18:27This is in a fantastic location, plus there's scope to extend and add value.
0:18:27 > 0:18:30But the dry rot in this property is cause for concern.
0:18:30 > 0:18:34I hope whoever bought this had it surveyed first.
0:18:34 > 0:18:37Let's find out who wanted it as we go to auction.
0:18:37 > 0:18:41Battersea now. Three-bed end-of-terrace house.
0:18:41 > 0:18:43Requires some modernisation.
0:18:43 > 0:18:47Very popular area, Between The Commons.
0:18:47 > 0:18:49500 anywhere?
0:18:49 > 0:18:52On my right sitting down, blue. 500.
0:18:52 > 0:18:55525. 550.
0:18:57 > 0:19:00575. 600.
0:19:00 > 0:19:03625. 630.
0:19:03 > 0:19:07635, yeah? 635. 640.
0:19:08 > 0:19:12With you at £640,000. Anyone else?
0:19:12 > 0:19:16It's against you, 640. 641.
0:19:16 > 0:19:18642.
0:19:18 > 0:19:20643.
0:19:20 > 0:19:23644. 645.
0:19:23 > 0:19:26646. 647.
0:19:26 > 0:19:30648. 649.
0:19:30 > 0:19:32650. 651.
0:19:32 > 0:19:35651, new spot.
0:19:35 > 0:19:37652.
0:19:37 > 0:19:39652.
0:19:39 > 0:19:41653. 654.
0:19:42 > 0:19:46653. 654?
0:19:46 > 0:19:50654, another spot at the back. 655.
0:19:50 > 0:19:53660. 661.
0:19:53 > 0:19:55662. 663.
0:19:55 > 0:19:58664. 665.
0:19:58 > 0:20:00666.
0:20:00 > 0:20:02You two coming in?
0:20:02 > 0:20:06If not, 665 down here. First time. Second time.
0:20:06 > 0:20:10Third and last time if you're all done.
0:20:10 > 0:20:13Sold, 665.
0:20:13 > 0:20:18'That final winning bid of £665,000 was made by Rob.
0:20:20 > 0:20:22'His background is in telecommunications
0:20:22 > 0:20:26'but after taking a couple of years off to enjoy time with his young family,
0:20:26 > 0:20:30'he's recently started his own property investment company.
0:20:30 > 0:20:33'I met up with him at his first purchase.'
0:20:34 > 0:20:40- Rob, congratulations.- Thank you. - What did you think the first time you saw this and came inside?
0:20:40 > 0:20:42I thought it wasn't as bad as I imagined.
0:20:42 > 0:20:48From the outside, it looks really awful and I didn't think it was quite so bad when I came in.
0:20:48 > 0:20:50Did you view this property prior to the auction?
0:20:50 > 0:20:56I came along to the viewing but the agents didn't have any keys so I only saw it from the outside.
0:20:56 > 0:21:02- So for your first property venture, your first property you do up, you didn't view it?- No.
0:21:02 > 0:21:07'Perhaps it wasn't the best start to his new career in property to skip doing a viewing.
0:21:07 > 0:21:10'I just hope he inspected the legal pack.'
0:21:10 > 0:21:15I did look at the legal pack but there was something that went under the radar.
0:21:15 > 0:21:22- Which was what?- Seller's fees and the seller's legal fees.
0:21:22 > 0:21:26So the two main things you should've picked up on in that legal pack you missed.
0:21:26 > 0:21:30- I missed. - How much did that cost you?- £12,000.
0:21:30 > 0:21:35'Oh, £12,000 is a huge sum of money, especially when it's unexpected.
0:21:35 > 0:21:38'Add stamp duty of nearly £20,000
0:21:38 > 0:21:44'and the purchase price has leapt up from £665,00 to around £697,000.
0:21:44 > 0:21:48'But there's something about this house that Rob's drawn to.
0:21:48 > 0:21:55'He's from this area and figures there's an end value in sight of about £1.1 million.
0:21:55 > 0:21:58'But there's a great deal of work to do before then.'
0:21:58 > 0:22:03From the top down, we're going to put in a loft extension in the main part of the house.
0:22:03 > 0:22:09We're going to drop the ceiling on the upstairs floor to give us more height in the loft.
0:22:09 > 0:22:14Put a second loft extension on the back addition and put a bathroom in the front.
0:22:14 > 0:22:20Refurbish the bathroom and knock the two through. Take out chimneys to give some space at the back addition.
0:22:20 > 0:22:24Coming down here, this partition is going to come out
0:22:24 > 0:22:29and then we're going to punch a hole through to step down into what will be a big kitchen/dining room
0:22:29 > 0:22:35- with a glass roof side extension, and have a very open facade at the rear extension.- Wow.
0:22:35 > 0:22:39What about the dry rot? You can see it everywhere. It's riddled.
0:22:39 > 0:22:45I've had someone come in to look at that. It's in hand. It will be rectified.
0:22:45 > 0:22:49Have you done any costings as far as how much this might be costing you?
0:22:49 > 0:22:56- I've budgeted... I'd like to get out of it by spending under £200,000.- OK.
0:22:56 > 0:23:00And how long do you think it's going to take you to do all the work here?
0:23:00 > 0:23:05I think three months. Three months. My builders said they'll do it in two.
0:23:05 > 0:23:08'A £200,000 budget sounds realistic
0:23:08 > 0:23:11'but just two months to finish the work?
0:23:11 > 0:23:17'I guess that by working with as big a team of professionals as Rob is planning, it could happen.
0:23:17 > 0:23:19'And he's steadfastly optimistic.'
0:23:19 > 0:23:22Is there anything that's worrying you about this?
0:23:22 > 0:23:25Financially I'm stretched, so that's a worry.
0:23:25 > 0:23:30Everything's gone in, pretty much every penny that I've got is sunk into this property right now,
0:23:30 > 0:23:34so that's the big worry. But I think it's a sound investment.
0:23:34 > 0:23:39It doesn't look like it at the moment but providing we do the work to the right standard...
0:23:39 > 0:23:42- I can't wait to see what you do in here. Good luck.- Thank you.
0:23:43 > 0:23:47Martin and I are always advising buyers to read the legal pack.
0:23:47 > 0:23:51Poor Rob has to find £12,000 he hasn't bargained for.
0:23:51 > 0:23:54That is some people's entire budget.
0:23:54 > 0:24:00Learn from his mistake, viewers, and read the legal pack thoroughly before going to auction.
0:24:00 > 0:24:03Let's hope for his sake there are no more surprises.
0:24:03 > 0:24:07Will he get the planning to take this property to the next level
0:24:07 > 0:24:09and break through that £1 million barrier?
0:24:09 > 0:24:12You can find out later on in the programme.
0:24:13 > 0:24:17'Coming up, I go to an area of Cardiff that always tickles my fancy.'
0:24:17 > 0:24:22I'm in a place which has one of my favourite names of anywhere in the country - Splott.
0:24:23 > 0:24:28'It's been full steam ahead for Rob at his first development in Battersea.'
0:24:28 > 0:24:33We've had up to 14 people on site for large portions of the build.
0:24:34 > 0:24:39'But first, in Manchester, Khan's found the secret to property success.'
0:24:39 > 0:24:43It's the wife. She's found bargains everywhere.
0:24:46 > 0:24:52'In the Openshaw area of Manchester, would-be property developer Khan and his wife Jabena
0:24:52 > 0:24:57'bought this mid-terrace property at auction for £43,500.
0:24:57 > 0:25:00'It was in a pretty derelict state already
0:25:00 > 0:25:04'and the day I visited, one of the ceilings actually collapsed.
0:25:04 > 0:25:07'But the couple stood strong.
0:25:07 > 0:25:11'With financial help from family members, they were up for the challenge.
0:25:11 > 0:25:14'And quite a challenge it was going to be.'
0:25:14 > 0:25:17New bathroom suite, nice new tiles, new kitchen,
0:25:17 > 0:25:23decorate throughout, new ceilings, plastering a couple of walls and a bit of damp-proofing.
0:25:23 > 0:25:28- Radiators, boiler.- Everything. - Basically everything.
0:25:29 > 0:25:34'They gave themselves a budget of £15,000 and only six weeks to do everything
0:25:34 > 0:25:37'with Khan doing most of the hard graft himself.
0:25:37 > 0:25:42'So, eight weeks later, we're back to see how they got on.
0:25:53 > 0:25:56'The transformation is pretty amazing,
0:25:56 > 0:26:01'especially when you consider that Khan has done most of the renovation himself.
0:26:01 > 0:26:03'You definitely have to take your hat off to him.'
0:26:04 > 0:26:08Last time you were here, the kitchen was in a right state.
0:26:08 > 0:26:13Rotting away, we had mouse droppings, woodlice, everything.
0:26:13 > 0:26:17So we've just ripped the whole kitchen out, put new tiles on the floor,
0:26:17 > 0:26:23new kitchen sink, tap, drawers, everything. It looks brilliant now.
0:26:24 > 0:26:29'Khan has done some serious work fixing the sagging and bowed ceilings.
0:26:29 > 0:26:32'The upstairs bedrooms appear to be in top shape.
0:26:32 > 0:26:36'But it's the bathroom that does it for Jabena.'
0:26:41 > 0:26:44This is my favourite room in the house.
0:26:44 > 0:26:47My husband didn't let me see it till right at the end
0:26:47 > 0:26:49cos he kept it a surprise.
0:26:49 > 0:26:54I absolutely love the tiles, the way he's done it up.
0:26:54 > 0:27:00I did choose the bath and the radiator and all the equipment that's gone into it.
0:27:00 > 0:27:05But I'm really happy with the bathroom. It's my favourite room of the house.
0:27:05 > 0:27:11'Last time we were here, the walls and ceilings looked to be riddled with damp.
0:27:11 > 0:27:15'But there's no sign of that now. So just how bad was it?'
0:27:16 > 0:27:23The plaster was all coming away from the walls. Over the years, the rain had got behind the plaster
0:27:23 > 0:27:29and basically pushed the plaster out, so we had to redo quite a few walls,
0:27:29 > 0:27:34replaster them, and the roof was leaking quite a bit, as well,
0:27:34 > 0:27:37so we just pushed a few of the tiles back into the roof
0:27:37 > 0:27:40and that sorted the problem out.
0:27:40 > 0:27:44# Keep it together, in the family
0:27:46 > 0:27:49'It's been a real family project, with Khan doing the work,
0:27:49 > 0:27:55'his son Sahil lending a hand and Jabena project-managing and keeping a close eye on the budget.'
0:27:56 > 0:27:59The budget was essentially my responsibility.
0:27:59 > 0:28:04Luckily, while we were doing the house up, it fell in the Christmas period sales,
0:28:04 > 0:28:08so we got a lot of bargains. I was very pleased with that.
0:28:08 > 0:28:11I did a lot of research, did shop around, but got the best deal in the end.
0:28:11 > 0:28:13# Keep it together
0:28:13 > 0:28:16'So, have they kept it together money-wise?
0:28:16 > 0:28:21'With all these bargains, how far did their £15,000 budget stretch?'
0:28:21 > 0:28:24Our budgets have been fantastic.
0:28:24 > 0:28:26We're well under ten grand.
0:28:27 > 0:28:32It's amazing, I know. It's the wife. She's found bargains everywhere.
0:28:32 > 0:28:36Double-glazing, radiators, everything we've got really cheap.
0:28:36 > 0:28:39Yeah, budget was under ten grand.
0:28:39 > 0:28:41So yeah, very, very pleased with the budget.
0:28:41 > 0:28:46'They may have shaved pounds off their budget, but unfortunately,
0:28:46 > 0:28:50'Khan has put pounds on around his waistline instead.'
0:28:50 > 0:28:54My husband's eating habits went absolutely diabolical.
0:28:54 > 0:28:57He totally forgot his healthy diet
0:28:57 > 0:29:02because he was starting early, 7 o'clock in the morning, finishing really late
0:29:02 > 0:29:05and every night I kept asking, "Are you coming home for your tea?"
0:29:05 > 0:29:10and he's like, "No, I want to get this finished, I want to get the tiling and the plastering done"
0:29:10 > 0:29:13so it was takeaways, takeaways, takeaways.
0:29:13 > 0:29:17So all he did was have takeaways.
0:29:18 > 0:29:22'Oh, naughty Khan. Hopefully, when it comes to the fruits of his labour,
0:29:22 > 0:29:25'he'll be rewarded with a healthy profit.
0:29:25 > 0:29:27'We asked two local property experts
0:29:27 > 0:29:30'what they made of the finished result.'
0:29:31 > 0:29:34First impressions of the property are good.
0:29:34 > 0:29:38It's a good size property and the renovation has been done well.
0:29:38 > 0:29:42You go in some refurbishments and wonder where money has been spent.
0:29:42 > 0:29:47But with this one, you can see that everything has been done, nice modern bathroom and kitchen,
0:29:47 > 0:29:50new floors, new ceilings, replastered.
0:29:50 > 0:29:52Just about everything has been done.
0:29:52 > 0:29:57'Khan and Jabena have spent a total of around £53,000,
0:29:57 > 0:30:01'including their purchase price of £43,500.
0:30:01 > 0:30:03'So have they invested their money wisely?
0:30:03 > 0:30:07'Firstly, what could they earn on the rental market?
0:30:07 > 0:30:13From a rental point of view, I think the property would achieve in the region of £450 per calendar month.
0:30:13 > 0:30:20The property, if rented, would achieve around £525 to £550 per calendar month.
0:30:20 > 0:30:24'That's a whopping yield of between 10% and 12.5%.
0:30:24 > 0:30:26'But the couple would prefer to sell.
0:30:26 > 0:30:30'Could they make an equally impressive profit by doing that?'
0:30:31 > 0:30:34I think if we were to put the property on the market for sale,
0:30:34 > 0:30:39I would suspect that, in the current market, the price would probably be around £75,000.
0:30:39 > 0:30:43Property value for something like this, in the condition that it's now in,
0:30:43 > 0:30:47would probably sell for around £80,000 to £85,000.
0:30:47 > 0:30:51'These figures would give a potential pre-tax profit
0:30:51 > 0:30:56'of between £22,000 and £32,000, minus the usual selling fees.
0:30:56 > 0:30:58'Are they happy?'
0:30:58 > 0:31:03Even if it sold at £75,000, we'd still make £20,000 profit.
0:31:03 > 0:31:06- It's still really good. - So we'd be happy.
0:31:06 > 0:31:09For two months' work, that's more than enough.
0:31:11 > 0:31:16'On the strength of these figures, they should be able to pay back the money they owe their families
0:31:16 > 0:31:18'and move onto their second project together.
0:31:18 > 0:31:24'But will there be any conditions when it comes to the location of their next auction purchase?'
0:31:26 > 0:31:30- Not if it's next to a fish and chip shop.- Nowhere near a takeaway.
0:31:36 > 0:31:41'I'm in Cardiff, the historic yet happening capital city of Wales.
0:31:41 > 0:31:47'And I've come to the childhood stomping ground of the great and the grand Dame Shirley Bassey.
0:31:47 > 0:31:53'So, where am I?' I'm in a place which has one of my favourite names of anywhere in the country - Splott.
0:31:53 > 0:31:56It's a residential suburb of Cardiff. Isn't that great?
0:31:56 > 0:31:59And there's a very interesting opportunity on the cards.
0:31:59 > 0:32:05It's this building here. It's the former Aikido centre here. It's a residential development opportunity.
0:32:05 > 0:32:09The big question is, will it be Diamonds Are Forever for the buyer
0:32:09 > 0:32:12or does it need a Big Spender?
0:32:12 > 0:32:14# The minute you walked in the joint
0:32:14 > 0:32:20# I could see you were a man of distinction, a real big spender
0:32:20 > 0:32:25'From the outside, this former martial arts centre is certainly impressive.
0:32:25 > 0:32:29'It's a two-storey detached property with a lovely brick and stone facade.
0:32:29 > 0:32:35'The guide price at auction was £42,000. Let's take a look inside.'
0:32:35 > 0:32:38# Hey, big spender
0:32:38 > 0:32:41So, what's behind the big black door?
0:32:41 > 0:32:46Erm, OK. Well, downstairs here, one very large room.
0:32:46 > 0:32:50I have to say, slightly disappointing. Big industrial space.
0:32:50 > 0:32:52Bearing in mind this was a former martial arts club,
0:32:52 > 0:32:56I guess this was one of the training areas, you've got changing facilities.
0:32:56 > 0:32:58But not a lot else.
0:32:58 > 0:33:02Still, intriguing. Let's take a look upstairs.
0:33:02 > 0:33:05# Everybody was Kung Fu fighting
0:33:07 > 0:33:11- # Those kids were fast as lightning - Wow.
0:33:11 > 0:33:15# In fact, it was a little bit frightening
0:33:15 > 0:33:18What an amazing space!
0:33:18 > 0:33:24Oh, you come up here and this place has suddenly redeemed itself. Look at this.
0:33:24 > 0:33:28The high ceilings, the wooden floorboards.
0:33:28 > 0:33:34I guess this was where the main training area for the martial arts centre would've been.
0:33:34 > 0:33:38So what could you use this for? I guess the biggest issue at first glance
0:33:38 > 0:33:42is that fact that you've only got light, windows, on the front and that side.
0:33:42 > 0:33:45So if you're looking at converting this into residential use,
0:33:45 > 0:33:49you've got that whole wall there and that whole wall at the back with no windows.
0:33:49 > 0:33:55So you'll have to get creative, maybe think about knocking it down or putting a steel frame inside
0:33:55 > 0:34:02and converting it into flats. Er, the options are endless and very exciting.
0:34:04 > 0:34:07'There are many options here
0:34:07 > 0:34:09'and it's a great space for sure.
0:34:09 > 0:34:12'But the building is not without problems.
0:34:12 > 0:34:16'Redevelopment as residential will need the planners on your side,
0:34:16 > 0:34:20'not to mention the neighbours.
0:34:20 > 0:34:26'Structurally, it's clear that the walls and roof are in serious need of repair and that's going to cost.
0:34:26 > 0:34:29'What does a local estate agent make of the property?
0:34:29 > 0:34:33'Is it more than just a Splott on the landscape?'
0:34:34 > 0:34:37I think it's an exciting project for an investor.
0:34:37 > 0:34:42It holds a lot of potential. I feel its main potential is apartments.
0:34:42 > 0:34:47I feel, from an investment potential, as much as it would be nice to have two houses,
0:34:47 > 0:34:53I don't think the investor would get the return that he'll need to make it financially worthwhile.
0:34:54 > 0:34:59'So, the current building could be converted into four one to two-bedroom flats.
0:34:59 > 0:35:02'What ball park figure could the purchaser rent each flat out for?'
0:35:04 > 0:35:10Rental values as far as flats are concerned would be certainly £450 per calendar month.
0:35:10 > 0:35:12'And if they wanted to sell them on?'
0:35:12 > 0:35:18As far as resale value is concerned, flats should sell for £80,000.
0:35:19 > 0:35:24So, will this former martial arts centre be retained and converted into flats,
0:35:24 > 0:35:30set up as a community centre, perhaps, or knocked down and replaced by houses?
0:35:30 > 0:35:34I fear it may well be for the karate chop.
0:35:34 > 0:35:37Let's go to the auction and find out what happened.
0:35:40 > 0:35:45On we go now to lot number 24 in your catalogue.
0:35:45 > 0:35:49Detached two-storey commercial premises this time.
0:35:49 > 0:35:53I have a £49,000 reserve
0:35:53 > 0:35:56and I have a £49,000 proxy bid.
0:35:56 > 0:36:00So what am I bid for it? Can I see 50 in the room?
0:36:00 > 0:36:04I'm selling all the time. I have the £49,000 bid.
0:36:04 > 0:36:08At £49,000 I am selling. 50 if you like.
0:36:08 > 0:36:13At £49,000. 50, thank you. 50,000 I'm bid.
0:36:13 > 0:36:1751 for my proxy bid. At 51.
0:36:17 > 0:36:202 if you like now, madam. My proxy bid is out.
0:36:20 > 0:36:25At £52,000, I'm selling all the time and it is your bid, madam.
0:36:25 > 0:36:28At 52,000. Can I see 3 anywhere?
0:36:28 > 0:36:34It's the lady's bid. At £52,000. She's going to get it if you're not quick.
0:36:34 > 0:36:37Have you all done, then? 3, thank you, standing in the back.
0:36:37 > 0:36:41I thought you'd got it, madam. 4. 54 for the lady.
0:36:41 > 0:36:4655 with you, sir. 5, 55 for the gent.
0:36:46 > 0:36:4956 please, madam. 56 I'm bid.
0:36:49 > 0:36:51At 56. Are you coming again, sir?
0:36:51 > 0:36:53Don't shake your head, you don't get it that way.
0:36:53 > 0:36:56At 56,000 for the lady, then.
0:36:56 > 0:37:00At 56,000. Are you coming again, sir? Yes or no?
0:37:00 > 0:37:03The lady's going to get it at 56,000.
0:37:03 > 0:37:08Have you all done, then? At £56,000. Lady's bid, thank you.
0:37:08 > 0:37:14'The successful bid of £56,000 was made by Nua on behalf of her husband Ahmed.
0:37:16 > 0:37:19'Ahmed is a retired child psychiatrist
0:37:19 > 0:37:22'who's using his pension pot to invest in property.
0:37:22 > 0:37:25'He already has six others, five of which he rents out.
0:37:25 > 0:37:31'I met up with the doctor to find out if he had a remedy for this ailing building.'
0:37:31 > 0:37:35- Beautiful.- I'd love to see these floorboards cleaned up.
0:37:35 > 0:37:40- I hope we keep on top of it for the time being.- Listen, congratulations.
0:37:40 > 0:37:43- Thank you.- Interesting project.- Very.
0:37:43 > 0:37:45Tell me why you wanted to buy this place.
0:37:46 > 0:37:49- Because it's interesting.- OK.
0:37:49 > 0:37:53It's different than other buildings around it. It seemed to have character.
0:37:53 > 0:38:01- I didn't have the opportunity to come inside.- Really?- But I just... It's location, location, location.
0:38:01 > 0:38:04So you have to study the territory around you,
0:38:04 > 0:38:06you have to know what buildings are around,
0:38:06 > 0:38:10so you can think what the potential of developing this into.
0:38:10 > 0:38:13And I felt that was a reasonable price.
0:38:13 > 0:38:19'Of course, I always advise against buying at auction without viewing the property first,
0:38:19 > 0:38:23'but Ahmed had at least done some valuable location research beforehand.'
0:38:24 > 0:38:29- So what's the plan for this place? - I don't think there are clear plans as yet, actually.
0:38:29 > 0:38:34It goes all the way from demolishing it and redeveloping it from scratch
0:38:34 > 0:38:38into, kind of, why not keep the walls?
0:38:38 > 0:38:41'So no clear plan yet, then.
0:38:41 > 0:38:46'There's quite a difference between the option of demolishing and rebuilding
0:38:46 > 0:38:50'and converting the current building to flats, which is Ahmed's other idea.
0:38:50 > 0:38:54'Whichever he goes for will have a big impact on the budget for starters.'
0:38:54 > 0:38:58Do you have any idea of budget? How much have you got to play with?
0:38:58 > 0:39:03With this size, the minimum I would think of,
0:39:03 > 0:39:10if we can make that a couple of semis or three flats, that would be worthwhile,
0:39:10 > 0:39:18that will mean we may need to spend maybe £70,000, £80,000 more on developing it.
0:39:18 > 0:39:21'So the doctor's budget for redeveloping the building,
0:39:21 > 0:39:25'either by rebuilding or converting it into flats, is similar,
0:39:25 > 0:39:28'around the £70,000 to £80,000 mark.'
0:39:28 > 0:39:32- What kind of timescale have you got? - Realistically, I give this project a year.
0:39:32 > 0:39:36I'm hoping it will be eight months, something like that.
0:39:36 > 0:39:39That's realistic, I think.
0:39:39 > 0:39:43'As there are no planning consents in place here,
0:39:43 > 0:39:47'I just hope that eight months to a year will be long enough.
0:39:47 > 0:39:50'And although Ahmed may be hazy over which direction to take,
0:39:50 > 0:39:54'he's very clear about making an informed decision based on professional advice.
0:39:54 > 0:39:57'So time to meet the doctor's trusted architect.'
0:39:57 > 0:40:02Somas, you're Ahmed's architect. What do you think of this place?
0:40:02 > 0:40:09Initially when I saw this building, I thought it has got character. That's what I told him.
0:40:09 > 0:40:14And if he can retain the building in our development, that will be a great achievement.
0:40:14 > 0:40:20So I am in the process of designing something where I will be retaining the building.
0:40:20 > 0:40:23How are you going to do that? What ideas do you have?
0:40:23 > 0:40:30It's trying to create small openings to act as light wells so that you can get light into the middle,
0:40:30 > 0:40:34so you can have bedrooms looking into the courtyard
0:40:34 > 0:40:36and yet keep the structure as it is.
0:40:36 > 0:40:41I'll try my best to convince the doctor that that is the best
0:40:41 > 0:40:46and try to show it in terms of economising wherever possible
0:40:46 > 0:40:51to reduce the cost in the conversion
0:40:51 > 0:40:56and get as many units as possible so that it becomes a better return for him.
0:40:56 > 0:41:01So, will the doctor take the advice of his architect and save this place
0:41:01 > 0:41:05or will he go for profit over preservation?
0:41:05 > 0:41:08You can find out later in the show.
0:41:11 > 0:41:15If you want to profit from property, timing is crucial.
0:41:15 > 0:41:18And you have to be flexible with your plans.
0:41:18 > 0:41:20And don't let time pass you by.
0:41:20 > 0:41:24Let's take a look and see how our buyers got on today.
0:41:25 > 0:41:27'Time now to return to Battersea in London
0:41:27 > 0:41:34'where Rob had bought this dilapidated three-bedroom end-of-terrace for £665,000.
0:41:35 > 0:41:39'With a background in telecommunications, he'd opted for a career change
0:41:39 > 0:41:41'and set up his own property investment company.
0:41:41 > 0:41:46'But he could hardly have chosen a more challenging first project.'
0:41:46 > 0:41:51Rob, what are you going to do to really turn this house around and give it the change it needs?
0:41:51 > 0:41:57We'll put in a loft extension in the main part of the house, a second loft extension on the back addition,
0:41:57 > 0:42:00refurbish the bathroom, knock the two through,
0:42:00 > 0:42:04this partition is going to come out and then we're going to punch a hole through
0:42:04 > 0:42:08to step down into what will be a big kitchen/dining room.
0:42:09 > 0:42:14'It's now three and a half months later and we're back just in the nick of time
0:42:14 > 0:42:16'to see the scaffolding come down.
0:42:18 > 0:42:25'And the depressing battleship grey property has been restored to its former glory.
0:42:25 > 0:42:30'The original brickwork has been exposed and the beautiful moulded features look stunning.
0:42:30 > 0:42:35'At the rear of this corner property, the tree stump has gone
0:42:35 > 0:42:39'and incredibly, it took specialists a week to remove it.
0:42:39 > 0:42:43'There's now a new wall which matches the brickwork of the house.
0:42:43 > 0:42:48'And do I spy an impressive new extension at the top there? I can't wait to see inside.
0:42:55 > 0:43:00'On the ground floor, the two reception rooms are now one large living area.
0:43:03 > 0:43:07'And at the rear, the previously rotten dining room and tiny kitchen
0:43:07 > 0:43:11'have been knocked through to create a magnificent new kitchen area.
0:43:13 > 0:43:19'The original side wall has been demolished and a new glass roof side extension added.
0:43:22 > 0:43:27'On the first floor, the large rear bedroom has been totally rebuilt.
0:43:28 > 0:43:32'And this luxury bathroom's been installed.
0:43:34 > 0:43:38'Up another set of stairs and that brown bedroom that was riddled with rot
0:43:38 > 0:43:42'has been reduced in size, but it's still a double.
0:43:44 > 0:43:51'And the space it's lost has gone to the front bedroom, as Rob explains.'
0:43:51 > 0:43:57On this floor, we've got the two main bedrooms of the original house.
0:43:57 > 0:44:01The front bedroom, which was possibly the master bedroom,
0:44:01 > 0:44:05has now got an en suite and then the second bedroom behind.
0:44:05 > 0:44:12And as we walk onto these stairs here, this is now the new double loft extension.
0:44:12 > 0:44:16This room here is the smaller pod over the rear addition of the house.
0:44:16 > 0:44:21And then up behind me is into the main loft above the main part of the house
0:44:21 > 0:44:25which has got a large room with its own en suite, as well.
0:44:25 > 0:44:28'Yes, this is the crowning glory of the property.
0:44:28 > 0:44:34'This bedroom is a lovely space with lots of character and another en suite.
0:44:34 > 0:44:39'That makes a total of three bathrooms and five double bedrooms.
0:44:39 > 0:44:43'Rob hasn't skimped on size here. The house is almost unrecognisable.
0:44:45 > 0:44:48'Back down all those stairs now to the kitchen
0:44:48 > 0:44:54'where Rob explains how his team of builders set about transforming the ground floor.'
0:44:54 > 0:45:00There were two stud partition walls, which we've taken down. They were serving no purpose really.
0:45:00 > 0:45:02The pantry. Kitchen was really tiny.
0:45:02 > 0:45:07Obviously, this is the area where we had the main side extension,
0:45:07 > 0:45:11put a glass roof in to bring light into the kitchen.
0:45:11 > 0:45:17Fully tiled it out, under-floor heating, put in high standard appliances and fit out.
0:45:17 > 0:45:19Made it a very nice family space.
0:45:19 > 0:45:22'The walled outside area is a real bonus.
0:45:22 > 0:45:28'Rob's planning to add decking to finish it off and when it comes to making the most of the space inside,
0:45:28 > 0:45:32'he's even converted the cellar into a utility area.
0:45:33 > 0:45:37'His team of builders have achieved this major refurbishment
0:45:37 > 0:45:41'and new build in a very impressive three and a half months.'
0:45:41 > 0:45:46We've had up to 14 people on site for large portions of the build.
0:45:46 > 0:45:49The whole house has been gutted from top to bottom.
0:45:49 > 0:45:52There's a brand new roof, all new plumbing, all new wiring.
0:45:52 > 0:45:56Wherever we found dry rot, we've cut away the original timbers
0:45:56 > 0:46:00and we took so much of the wood out and so many of the ceilings out
0:46:00 > 0:46:03that we ended up replacing most of the internal walls.
0:46:03 > 0:46:08'Although Rob project-managed the job, he has also got stuck in and done some of the work himself.
0:46:08 > 0:46:11'What were the biggest issues?'
0:46:11 > 0:46:15The biggest problem on the development really was the drains at the back.
0:46:15 > 0:46:19That caused us the biggest delay and expense
0:46:19 > 0:46:22because we had to build over the public sewer.
0:46:22 > 0:46:28'Rob had to liaise with Building Control and the water company to get the necessary planning approval.
0:46:28 > 0:46:31'So what effect did that have on his budget?'
0:46:31 > 0:46:36The budget has over-run. The budget has gone from originally 200
0:46:36 > 0:46:42to now 250, but that's including high specification and various other works.
0:46:42 > 0:46:45'We invited two local estate agents
0:46:45 > 0:46:49'to come and cast their expert eyes over the five-bedroom property.'
0:46:50 > 0:46:54My first impression is it's absolutely fantastic.
0:46:54 > 0:46:56A lot of period features retained, original doors,
0:46:56 > 0:46:59they've put cornicing back and ceiling roses.
0:46:59 > 0:47:04This area appeals to family buyers, so having lots of double bedrooms
0:47:04 > 0:47:08and en suites is going to make this property certainly more saleable.
0:47:08 > 0:47:12He's redone everything, even cleaned the brick back to the yellow-stock brick,
0:47:12 > 0:47:14which looks fantastic, it absolutely gleams.
0:47:14 > 0:47:17The kitchen's been done in a very modern style.
0:47:17 > 0:47:21Glass worktops, modern stainless steel appliances
0:47:21 > 0:47:24and the kitchen island will certainly go down very well.
0:47:24 > 0:47:28Most of these properties are converted into the loft to four-beds.
0:47:28 > 0:47:32He's done five bedrooms but there's no single bedrooms. They're all really good sizes.
0:47:32 > 0:47:38'Rob has no intention of renting the house out. He's looking to sell, hopefully at a profit.
0:47:38 > 0:47:41'Rob paid £665,000 at auction,
0:47:41 > 0:47:45'plus he had an additional £12,000 to pay in fees.
0:47:45 > 0:47:51'Added to the stamp duty of 3%, that makes £697,000.
0:47:51 > 0:47:55'Then his budget stretched to £250,000,
0:47:55 > 0:47:58'bringing the grand total to £947,000.
0:47:58 > 0:48:02'So how much is this place now worth?'
0:48:02 > 0:48:05Looking at the current market and resale values,
0:48:05 > 0:48:09I believe the resale value for this property to be around the £1 million mark.
0:48:09 > 0:48:13I think this house is worth between £1 million and £1,025,000.
0:48:14 > 0:48:20'That valuation range would generate a gross profit, before the usual selling expenses,
0:48:20 > 0:48:23'of between £53,000 and £78,000.
0:48:24 > 0:48:27'What does Rob think of that?'
0:48:27 > 0:48:31Erm, disappointing, initial reaction.
0:48:31 > 0:48:33Obviously, I overspent on my budget.
0:48:33 > 0:48:39And if that's a true reflection then that's going to be quite difficult.
0:48:39 > 0:48:45'But Rob's crossing his fingers that he won't have to advertise the house at all.'
0:48:45 > 0:48:48Fortunately, I've had an offer before it's gone to market
0:48:48 > 0:48:53and the offer is in excess of the valuation that I've been given today.
0:48:54 > 0:48:58'If Rob can sell it for more then I'm delighted for him.
0:48:58 > 0:49:01'The transformation is amazing. Someone will be very happy living here.
0:49:01 > 0:49:06'So how has he found his first venture? And would he do it again?'
0:49:06 > 0:49:11I have an interest and a passion for property, so whilst it's been a real hard slog,
0:49:11 > 0:49:16I found it much more enjoyable than working in a corporate space in telecommunications.
0:49:16 > 0:49:22So yes, I'll take a month off but start to look for another property
0:49:22 > 0:49:26and start to try and build an empire and something to leave my children.
0:49:28 > 0:49:32'We're back in Cardiff to see what's been happening
0:49:32 > 0:49:37'in this two-storey former martial arts centre in Splott.
0:49:37 > 0:49:43'Semi-retired child psychiatrist Ahmed bought the property at auction for £56,000.
0:49:43 > 0:49:46'It was a great space and I saw plenty of potential here.
0:49:46 > 0:49:50'But Ahmed hadn't quite decided what he was going to do with it.'
0:49:50 > 0:49:55- What's the plan for this place? - I don't think there are clear plans as yet, actually.
0:49:55 > 0:50:00It goes all the way from demolishing it and redeveloping it from scratch
0:50:00 > 0:50:04into, kind of, why not keep the walls?
0:50:04 > 0:50:06# Should I stay or should I go?
0:50:06 > 0:50:12'So, would the building stay and be converted into flats or would it go and be rebuilt?
0:50:12 > 0:50:16'Ahmed was waiting for his architect's advice before deciding
0:50:16 > 0:50:19'but at least he was clearer on his timescale.'
0:50:19 > 0:50:22Realistically, I'll give this project a year.
0:50:22 > 0:50:26I'm hoping it will be eight months, something like that.
0:50:26 > 0:50:28That's realistic, I think.
0:50:28 > 0:50:34'Hm. Realistic, eh? Well, it seems that Ahmed's timescale was brushed aside
0:50:34 > 0:50:39'because not one year but 20 months later, we're back.
0:50:39 > 0:50:42'And whilst it doesn't look exactly tenant ready,
0:50:42 > 0:50:45'it's at least still standing.
0:50:45 > 0:50:50'And inside, quite literally, there's another story to tell.
0:50:53 > 0:50:56'They've added a whole new floor.
0:50:56 > 0:50:59'So, where the accommodation used to be over two floors,
0:50:59 > 0:51:03'it's now on three. So why all the delays?'
0:51:06 > 0:51:10The original hope that I had at the very beginning
0:51:10 > 0:51:15was that I may have six one-bedroom flats.
0:51:15 > 0:51:19We applied for that and then were told no.
0:51:19 > 0:51:25And so eventually, after some long negotiations, we agreed to the three one-bedroom flats.
0:51:25 > 0:51:31'So Ahmed's grand plans for six one-beds were rejected in favour of three larger one-bed flats.
0:51:31 > 0:51:37'Each flat comprises a double bedroom, a bathroom and a large kitchen/dining/living area.
0:51:37 > 0:51:42'The flats are pretty spacious, each measuring around 100 square metres.
0:51:42 > 0:51:46'All the to-ing and fro-ing with the planner really held Ahmed back
0:51:46 > 0:51:50'and then there were the neighbours to get on side.'
0:51:50 > 0:51:55We had to negotiate with the neighbours how to go through the process of the development
0:51:55 > 0:52:01and how to keep them comfortable and coping with...
0:52:01 > 0:52:05Yes, I suspect builders around the place are an intrusion,
0:52:05 > 0:52:10so in that sense, they had reason to be comforted.
0:52:10 > 0:52:18'It's always wise to see things from the perspective of those living close by and keep things amicable.
0:52:18 > 0:52:22'One agreement that was reached was for Ahmed to rent the garden space of five neighbours
0:52:22 > 0:52:26'to put scaffolding up to take off the roof.'
0:52:26 > 0:52:30So eventually we were able to make the deal
0:52:30 > 0:52:34and we were all kind of happy with the work to progress.
0:52:34 > 0:52:38'Phew. So the builders could then set about creating three one-bedroom flats.
0:52:40 > 0:52:44'There's one flat on the ground floor.
0:52:44 > 0:52:47'One apartment on the new first floor.
0:52:47 > 0:52:50'And a light and airy penthouse on the top floor.
0:52:50 > 0:52:53'But the most intriguing feature of the accommodation
0:52:53 > 0:52:56'is that it's all been built around an ingenious light well.'
0:52:57 > 0:53:01# Light up, light up
0:53:01 > 0:53:06# As if you have a choice
0:53:06 > 0:53:09'OK, so this needs a bit of imagination,
0:53:09 > 0:53:12'but ignore the scaffolding planks at the top
0:53:12 > 0:53:16'and picture this shaft painted white and you'll get the idea.
0:53:16 > 0:53:21'When this is finished, there will be loads of light bouncing around and into the flats. Clever, eh?
0:53:24 > 0:53:30'Things are moving on site now and Ahmed's builders are pulling out all the stops.
0:53:30 > 0:53:32'But just how long until the flats are finished?'
0:53:32 > 0:53:39I think we should finish the properties, the building process, in about five or six weeks.
0:53:39 > 0:53:42'So there's light at the end of the tunnel
0:53:42 > 0:53:44'with the development not too far off completion,
0:53:44 > 0:53:48'albeit closer to two years down the line rather than one.
0:53:48 > 0:53:52'But how has Ahmed done on the budget front?
0:53:52 > 0:53:56'Initially, he hoped to spend around £70,000 to £80,000 on the work.'
0:53:56 > 0:54:00We are spending about £105,000 on it so far.
0:54:00 > 0:54:05It may obviously need a little more.
0:54:05 > 0:54:11I don't expect an awful lot more, but I expect it to be maybe £10,000 more.
0:54:12 > 0:54:19'With his final budget estimated to be around £115,000 including all fees and expenses,
0:54:19 > 0:54:25'plus his purchase price of £56,000, that makes a total of £171,000.
0:54:25 > 0:54:28'Has he invested his money wisely?
0:54:28 > 0:54:31'We asked two local property experts to look around the development
0:54:31 > 0:54:35'and shed some light on what it could be worth once completed.'
0:54:36 > 0:54:39I think it's an exciting project.
0:54:39 > 0:54:43Obviously, it's difficult to look at it now in its unfinished state.
0:54:43 > 0:54:46But it could be very exciting when it's finished.
0:54:49 > 0:54:52I think it's quirky, it's going to appeal to first-time buyers,
0:54:52 > 0:54:54it's got something of an unusual factor,
0:54:54 > 0:54:57so yes, it's going to be of interest.
0:54:57 > 0:55:01'Ahmed's wish is to help create more affordable housing in the area.
0:55:01 > 0:55:07'He intends to add these three one-bed flats to his small but growing buy-to-let portfolio.
0:55:07 > 0:55:10'What could they achieve as rentals?'
0:55:10 > 0:55:16I could rent the ground-floor apartment for £400 per calendar month and also the first floor.
0:55:16 > 0:55:20With regards to the penthouse, which I think will have the views,
0:55:20 > 0:55:23£450 per calendar month.
0:55:23 > 0:55:30Potential rental for this type of property would be approximately £400 to £500 per calendar month.
0:55:30 > 0:55:32'And if the doctor were to sell?
0:55:32 > 0:55:36'Remember, he thinks his total outlay here once the building's restored to good health
0:55:36 > 0:55:39'will be just over £170,000.'
0:55:40 > 0:55:45In my opinion, I could sell the ground floor apartment for £85,000.
0:55:45 > 0:55:48Also the first floor for the same amount.
0:55:48 > 0:55:53And with regards to the penthouse, which I think is the icing on the cake of this development,
0:55:53 > 0:55:55I could achieve £90,000.
0:55:55 > 0:56:01Potentially you'd market these properties in the region of about £100,000 to achieve about £95,000.
0:56:01 > 0:56:05'These resale valuations mean that the whole building could achieve
0:56:05 > 0:56:09'between £260,000 and £285,000.
0:56:09 > 0:56:13'If the doctor changed his mind and put the property on the open market,
0:56:13 > 0:56:20'he could make a pre-tax profit of between £89,000 and £114,000, minus the usual selling expenses.'
0:56:22 > 0:56:26If I sell for within these prices, I'll be a happy man, yes.
0:56:27 > 0:56:31'And would the doctor do this kind of development again?'
0:56:33 > 0:56:38I will do this again because, at the end of the day, it's serving many people
0:56:38 > 0:56:44and I should like to be able to make money but also to be a good servant to the public.
0:56:48 > 0:56:53- There'll be more great stories for you next time on Homes Under The Hammer.- Do join us then. Goodbye.
0:56:55 > 0:56:59Subtitles by Red Bee Media Ltd
0:56:59 > 0:57:03E-mail subtitling@bbc.co.uk