Episode 37 Homes Under the Hammer


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Episode 37

Martin Roberts and Lucy Alexander visit a property in Devon, a plot with potential for development in Kent and a little flat in Darlington.


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Transcript


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Hello. Do you think you could hack it in the world of property?

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If you get it right, it can be a great way to earn money.

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And one way to be best placed is to buy your home under the hammer.

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There are tense moments in the auction room. Who will make the right bid at the right price?

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Yes. Properties can change people's fortunes for better or worse.

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Here's what inspired people on today's show.

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'This property in Devon looks cracking, but is it all it's cracked up to be?'

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So what have we got? That's not good.

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'I'm seeking inspiration when it comes to the development potential

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'of this auction lot in Kent.'

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Any ideas what to do with this place?

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'And I visit this darling little flat in Darlington.'

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I have to say it - there really is nothing wrong with this place!

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'All these properties have been sold at auction.

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

-Sold!

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# Look at the sun shining

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# Down on our love... #

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I'm in Exmouth in Devon, which, with its glorious golden sand, is a popular tourist destination.

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There's a direct rail link from London to Exmouth's lively town centre.

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All in all, there's a lot to like here.

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Well, the property I'm here to see is in a nice residential area,

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just a short walk up from the town centre if you don't mind the slight hill.

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And this is it. Guide price was 95,000 quid. Three-bed semi. Let's take a look inside.

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On first impressions, this is a lovely family home.

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Paid up for around the guide price of 95 grand and you may have bagged a bargain.

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# I'd call that a bargain The best I ever had... #

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So what have we got?

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Right.

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That's not good. A lot of people, you know, walk through that front door,

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see that huge great crack here and walk straight out again.

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That may not be a bad idea. I need to find out more about the property before I make a decision.

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What have we got apart from some issues which need looking at?

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A front living room with damp in that bay window.

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Through to a rear, well, I don't know, rear sitting room, I suppose?

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Lots of storage space. Bit of a larder there. That's quite nice.

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More storage space here.

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Oh!

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Right. Not actually storage space.

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That's your kitchen.

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Not looking too good so far, is it?

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The kitchen is pint-sized and pokey.

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I'd open it up into the rear sitting room to create a spacious kitchen/diner.

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However, the real cause for concern is the damp in the front sitting room and that crack in the hall.

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# Crack me up

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# You crack me up... #

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Let's take a look up top.

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So, I wonder if there are any more surprises in store upstairs?

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Ah... Unusual little light fitting on the landing there.

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How odd to have a light on the banister like that.

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Anyway, three bedrooms, all reasonable size. One there. Big one at the front with the bay window.

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Clearly, total refurbishment required. Your bathroom is upstairs which is good news.

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Then into the rear bedroom and you can't get away from the overriding thing about this property.

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And that is that there is a serious issue.

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Look at this. That is a crack and a half. There's a pound coin.

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Look how big it is. Not good at all.

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I tell you what, it's going to cost you more than a quid to put that right.

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More than a pretty penny. What we're talking here is serious subsidence.

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This whole corner of the property has sunk down for whatever reason.

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My guess would be drains. To sort it out, it'll need underpinning.

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For a start, it's not going to be mortgageable in the current state.

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All in all, we're looking at a property that's got serious problems.

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# It's an SOS, it's an SOS

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# Oh, yes, oh, yes

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# It's an SOS... #

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Well, at the rear corner of the property, there is a drain.

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And I don't think it's coincidental that that's there

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and it's this corner of the property that is giving all the problems.

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Probably that drain has broken down and water is just seeping into the ground,

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meaning that the building itself is sinking. And look at these bricks.

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It's not just inside that there are problems.

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The exterior brickwork is cracking as well here, up there, above the window.

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What will you have to do to sort it out? Dig out, underpin - that means replacing the foundations.

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Sort out whatever the problem is.

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And you know what? All of that is an expensive job.

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So let's try and cheer ourselves up - the garden of the property.

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Very nice. It's very long. And apart from needing a bit of sorting out, it's a good space,

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which is just as well because if I had bought this place, I might have to live out here.

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# When tonight you'll be sleeping under the stars... #

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But before I pitch my tent and start singing songs around the camp fire,

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let's ask a local estate agent for his opinion on this cracking property.

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The guide price for this three-bed semi was 95,000.

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It's in need of some love and attention.

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There is some subsidence, so it needs some work doing to it

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to make it an attractive family home.

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The kitchen is obviously very, very small, not adequate for modern-day living.

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The house offers quite a few opportunities.

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The main one would be to put a single storey extension on the back

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and make the kitchen there and extend the dining room slightly.

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Once renovated, what could it achieve on the rental market?

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When the property's renovated,

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the property will achieve a rental value of £850 per calendar month.

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And the sell-on value?

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When the property is renovated,

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it'll have a resale value of £175,000.

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So, a classic case of why you have to go and visit a property before buying it at auction.

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You could see a picture in the catalogue and think, "Fantastic."

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It's only when you get here that you discover the problems. They're not insurmountable.

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If you get it for the right price, you can allow money for the remedial works

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and still make money out of it. Let's see who fancied taking it on when it went under the hammer.

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Can I ask for opening bids of 90 on this one?

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Would anybody like to open the bids here at 90?

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Anybody come in and bid 85?

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80,000? Do I have anybody bidding...

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I have. Thank you. 80,000 I have, sat just in front of me.

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Looking for 85,000. 85 I have, just a little bit further back. Looking for 90.

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-87.

-I'll take 87 at this point, madam. 87. Looking still for 90.

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At 90. Thank you very much. Do I have any other bidders? 92.

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I have 92. Looking at 94. 92. I have 93 sat just on my right.

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'This auction lot was keenly contested with lots of interested parties.

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'We pick it up again at £117,500.'

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Lady's popped her hand up again. 117 and a half. 118. Thank you, sir.

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118 with the gentleman still sat in the middle of the room. 118 and a half from the lady.

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119 from the gentleman.

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120. Thank you, madam. 120. 121, sir?

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121. Thank you very much. At 121. I'm looking for 122.

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Going once at 121.

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Going twice at 121.

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Third and final time. Just looking at all the bidders.

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Yours, sir, at 121. Thank you, sir.

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'The successful bid of 121,000 was made by Cameron and his wife Karen.

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'Karen runs a holiday let business

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'while Cameron's a builder by trade and a keen rugby player.

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'So let's find out how he intends to tackle this house.'

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Cameron, Karen, congratulations.

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-Thank you.

-Well done. Bought a property with a...few problems.

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Somewhat.

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Obviously not fazed by it enough not to buy it?

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-No, it's what we do, so...

-Tell me more.

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-We buy cheap properties and do them up and sell them on.

-Right.

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-Simple as that.

-So the subsidence then would probably have put quite a few people off and is quite scary.

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We actually saw the report at the estate agents and I read it.

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And it said that it was caused by broken drains, so...it seems quite an easy one to fix.

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Well, that's the cause, but the actual result is that...

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There's two ways of looking at subsidence. You either, in section,

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actually re-concrete at the foundations or you take it away.

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-So we're going to take the back of the building away...

-Ah.

-Extend it.

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And then that's actually done away with the subsidence in the same job.

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'By removing the rear of the ground floor

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'and building an extension which will require new foundations, or footings as they're also known,

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'Cameron will fix the subsidence problem and increase the floor space of the house,

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'all in one very smart move. I'm impressed.'

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That makes sense because what's the point of re-building it as it is

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-when with extra money you increase the property?

-It'll cost less.

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Talk me through the numbers on that.

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-To build an extension would cost me about 5,000.

-Five?

-And to underpin it is roughly £1,000 a metre.

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And there's about seven metres to do.

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-So how are you going to build an extension with five grand?

-I do 90% of the work myself.

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-Right! Including bricklaying?

-Including the bricklaying, plastering, carpentry.

-Wow!

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Electrics, central heating. I used to be a heating engineer and an electrician. And plastering as well.

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-So you really are a jack of all trades?

-Yes.

-And a master of lots?

-I was going to say a master of none.

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# I'm the jack of all trades

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# You know that makes me the boss

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# You're gonna get your money's worth

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# No matter what it costs Hey, hey, hey... #

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'Cameron and Karen have developed over 20 properties in the Exmouth area in the last 15 years.

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'While Cameron deals with the building work, Karen's in charge of the cosmetic appearance.'

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-Could you tell me more about what you do, Karen?

-I do more of the pretty bits.

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I do decorating, tiling, coving.

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Um..."gofering".

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-Right. You're actually hands-on doing it all?

-Yes.

-Oh, great fun.

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Yes. And I pick the colours, bathrooms, kitchens, because I've got a bit more taste.

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Right!

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LAUGHTER

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'It's always ideal to have a mix of talent. And this couple certainly seem to be a great team.

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'But do their big plans come with a big timeframe?'

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-What's the timescale for doing the work?

-We've allowed ourselves 14 weeks,

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but if we can do it quicker, then, you know, hey-ho.

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And the budget for the whole amount?

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We've got a budget of 15,000.

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-Right. Including building the extension?

-Including building the extension.

-Well, wow!

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-Good luck. We look forward to seeing how you get on.

-Thank you.

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-Congratulations.

-Thank you.

-Thank you.

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Well, Karen and Cameron not at all fazed by the problems of this property.

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And I think they've come up with a really good solution for sorting it out.

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Still, that £15,000 budget to do all that work - can they really stick to that?

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Well, you can find out later in the show.

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I'm in Hollingbourne and this is actually the busy A20 near Maidstone in the Kent countryside.

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And I'm here today to see a piece of land with a solitary building on it.

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So nothing unusual about that, you might think. And you'd be right.

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Except the building is just 5 metres long by 2.5 metres wide.

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So not huge by any standards.

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So why buy it?

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Well, that building also sits on just under a quarter of an acre of land.

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And as Mark Twain once said, "Buy land. They're not making it any more."

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I've seen many peculiar properties on Homes Under The Hammer

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and I think this will be another for the curious and quirky file.

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The building I've come to see is a former telephone repeater exchange.

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I said, "Telephone repeater exchange." Ha-ha! Sorry.

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Well, it is detached, you can see. It's freehold. And it was guided at just £15,000 to £20,000.

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Well, I've no words of wisdom to quote on telephone repeater stations from Mark Twain,

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but I know what Shania Twain would say...

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# That don't impress me much

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# Oh, no... #

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So, this is what the inside of a repeater station looks like.

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Not hugely exciting. But what we do have in terms of services

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is electricity. Now I guess this trench down here would have housed the telephone cabling.

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But there's no water, there's no gas.

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Just one little window.

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And not a lot of space to work with.

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Any ideas what you could do with this place?

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And the answer is probably knock it down.

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The attraction of this auction lot is the land, not the building.

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But the low guide price has set my alarm bells ringing.

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So I'm not going to get hung up on this telephone repeater station.

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# Every little thing that you say or do

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# I'm hung up, I'm hung up on you... #

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Now, according to the council, getting planning for building a dwelling here is very unlikely

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because the plot is well outside any settlement boundaries.

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And that means villages, towns, shops where people live and work.

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So the principle of building a house here is against local and national policy.

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So in most circumstances they will not allow new buildings outside these boundaries.

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In these situations, talk to the planners

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before you build your hopes up about building a house here.

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The prospects of building on this plot might not look great at the moment,

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but that could change in the future.

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Broadly speaking, the price of land has gone up over the past ten years despite the recession,

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so at least you're less likely to lose money here.

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Time to find out what a local estate agent thinks

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about this unusual auction lot,

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which had a guide price of 15,000 to 20,000.

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This plot is a really tight plot.

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And to be honest, with the access on to the A20,

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I feel it's going to be impossible to get any planning on it.

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I think the problem is it's minute. It would have to be extended and I don't know how you'd extend it.

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To put water or any other main facilities in would cost an absolute fortune.

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It doesn't have any particular use, so you can't apply for change of use.

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So you would have to put in some sort of proposal to the council to see what they might accept.

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So it's not looking good in the estate agent's opinion.

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But planning consent isn't completely ruled out. So you could see that as a glimmer of hope,

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rather than a hopeless cause, depending on your outlook.

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And you know me - even on a dreary day like today, I always like to look on the sunny side.

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Yes, it's quaint. Yes, it's unusual.

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And a potential money-spinner should you get permission to build on the plot of land here.

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But who thought it was worth a punt at that guide price, I wonder? Let's go to auction and find out.

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Guided at 15 to 20. What may I say? 15? 15 I have. 15. 16. 17.

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18. 19. 20.

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20 I have with Will. At £20,000 is bid.

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At £20,000 I have. 22 is bid.

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And 23? 23.

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25. 28? No?

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25,000 I have in the front row. At £25,000 is bid. 28 for anyone else?

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At 25,000 then it's being sold for the first time.

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At 25,000. Being sold for the second time at 25,000.

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26 if it helps?

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Being sold for the third and final time.

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At 25,000, lady in the front. Are you all done?

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'It might have its issues,

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'but the interest in this lot pushed it 5,000 over the upper guide price.

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'The successful bid of 25,000 came from Anna and her son Arkan.

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'Anna's an eye surgeon and Arkan's a bricklayer.

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'Anna has appeared on Homes Under The Hammer before

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'when she bought and renovated this rundown and dilapidated house in Maidstone.

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'I went to meet her and Arkan at their new purchase.'

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Arkan and Anna, congratulations!

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-Thank you.

-Thank you.

-Anna, we've actually met before, haven't we?

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Yes, five years ago, I bought a house in Maidstone.

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-And you appeared on Homes Under The Hammer, so you're obviously still buying properties at auctions?

-Yes.

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-So who have you brought along with you today?

-This time, with my son, Arkan.

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And he loves this small, little house.

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And he's imagining he can live in it, so...

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-You want to live in this?

-Well, ideally, it would be good to get planning permission

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to build, you know...to extend the actual existing property.

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You know, that would be the... you know, the ideal thing, really.

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-And what would it look like?

-It would look like a tiny little cottage.

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I'll build a chimney on the side. I think it would be brilliant, yeah.

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What are the chances of you being able to convert this into residential?

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-Very slim, probably.

-But would you like to do that?

-Yeah, I'd love to. You've got to try.

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-Absolutely.

-I'll probably get refused again and again,

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but, you know, we'll keep trying, you know.

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'I do admire their ambition and enthusiasm, but it takes more than passion to get planning permission.'

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-Tell me, Anna, did you decide to go to auction to buy this telephone repeater station?

-No.

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We went to buy some other land at the end of the catalogue.

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And I said, "If we didn't buy the other land, we'll waste all our time, so let's buy something else."

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'Anna has bought three other auction properties before, but they didn't all make a profit.

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'On this impulse buy, they broke the golden rule by not looking at the legal pack.

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'They were also unable to heed the auction catalogue advice

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'to make enquiries with the planners before bidding.'

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-Arkan, do you think she's got a safe investment with her money?

-Well, it's land at the end of the day.

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And whatever happens, land... Nothing can go wrong with land, you know.

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So whether we develop it or not, eventually it's going to go up in value. It can't, you know, decrease.

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'Arkan could be right. Their plans may sound wishful thinking,

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'but in the long run if they can't get planning permission,

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'Anna should get her money back if she decides to re-sell.'

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So, guys, let's do some maths here. You've spent £25,000 so far on buying this.

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How much more money have you got to sink into this project?

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To build a small cottage or continuation to this to make a small cottage, a two-bedroom or something,

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-maybe we'll need about 10,000.

-10,000?

-Yeah.

-10,000?

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Yeah. Or more. I think 10,000 is enough.

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10,000 to build a small cottage?

0:21:020:21:04

Yes. Small, small, you know. Between 10 and 15, but not more.

0:21:040:21:08

So are you in any hurry at all to try and get something out of this

0:21:080:21:13

-in the immediate future? Or are you prepared to hang on to it?

-I think we're prepared to hang on to it.

0:21:130:21:18

It's an investment, you know. If we keep getting turned down with our applications for planning permission,

0:21:180:21:25

I think we've got time to... you know, to sit on it.

0:21:250:21:30

-So really, if I were to say to you, "What is going to happen next," you just don't know, do you?

-Yeah.

0:21:300:21:35

I thought maybe if we apply for planning permission and we got it,

0:21:350:21:39

then say, "OK, we don't want to do anything." We can sell it with the planning permission,

0:21:390:21:45

-which makes a bit of profit, doesn't it?

-That would be a fantastic idea.

0:21:450:21:49

So you don't have to carry on doing all the work, but I think Arkan would be disappointed

0:21:490:21:54

-because he wanted it to be his home here, especially with this little...

-A place for a bed down there(!)

0:21:540:22:01

Guys, I'm really excited to find out what the future holds for this little telephone repeater station!

0:22:010:22:07

-It's been really nice to see you both again.

-Thank you very much.

-Thank you.

-Thank you.

0:22:070:22:14

Arkan and Anna have taken a risk on this one. Anna has lost money on investments in the past.

0:22:140:22:21

Let's hope she doesn't repeat the same mistakes again.

0:22:210:22:25

Stay on the line and find out what this repeater station is transformed into. I can't wait!

0:22:250:22:31

'Coming up - this one-bedroom flat in Darlington seems to have it all.

0:22:320:22:36

'It's in a great area and in good condition.'

0:22:360:22:40

So I'm liking this place a lot.

0:22:400:22:41

'In Kent, Anna and son Arkan are already planning their next project.'

0:22:420:22:48

-Next time you'll be the boss and I'll be the assistant.

-Oh!

0:22:480:22:52

'But first, what do the experts think of Cameron and Karen's handiwork?'

0:22:530:22:59

The kitchen/breakfast room is the main selling point.

0:22:590:23:02

# Let the sun shine Let the sun shine, baby... #

0:23:050:23:09

'Let's return to the sunny shores of Exmouth in Devon where I viewed this three-bed semi-detached.

0:23:090:23:16

'From the outside, it looked cracking.

0:23:180:23:20

'But on the inside, it was literally cracking up.

0:23:200:23:23

'There was serious subsidence caused by a leaking underground drain,

0:23:250:23:30

'washing away the footings to the rear of the house.

0:23:300:23:33

'But what some may have seen as major structural problems

0:23:330:23:36

'was little more than a minor inconvenience for builder Cameron and his wife Karen.

0:23:360:23:42

'They purchased the property at auction for 121,000.'

0:23:420:23:46

-Bought the property with a...few problems.

-Somewhat.

0:23:460:23:50

-Obviously not fazed by it enough not to buy it?

-No, it's what we do, so...

0:23:500:23:55

-Tell me more.

-We buy cheap properties and do them up and sell them on.

-Right.

-Simple as that.

0:23:550:24:01

'We've returned four months later to see if it really was as simple as Cameron expected

0:24:010:24:08

'and whether they'd cracked those subsidence problems.

0:24:080:24:11

'The exterior is looking spick-and-span. Let's take a peek inside.'

0:24:120:24:18

# Crack it

0:24:180:24:20

# We will crack it... #

0:24:210:24:24

It's looking good. And at the back where the damage was done?

0:24:240:24:29

# We will crack it... #

0:24:290:24:31

A crack-free zone. Was it all as simple as Cameron predicted?

0:24:320:24:37

The main problem I had was a broken drain.

0:24:370:24:41

When we removed the existing footings, we found they'd been washed away over a period of years.

0:24:410:24:46

So I dug down till I got to the rock, put in four-and-a-half tonnes of concrete, repaired the drain

0:24:460:24:52

and re-built the brickwork.

0:24:520:24:53

Well, it's easy-peasy if you know how.

0:24:540:24:58

In the building game, put your mind to it and you can do it.

0:24:580:25:02

On the downside, Cameron was unable to build the rear extension he'd planned

0:25:020:25:07

as the water board held rights of access to this sewer pipe.

0:25:070:25:11

But on the upside, that allowed Cameron and his wife Karen to splash the cash on the interior.

0:25:110:25:18

To the rear of the property was a dining room with a teeny-weeny kitchen running off it.

0:25:180:25:24

Now it's a roomy kitchen/diner, which I think is money well spent.

0:25:240:25:30

There was a small scullery and a walk-in pantry which we took out.

0:25:310:25:36

Supported the ceiling from the wall we removed. Re-plastered, re-wired.

0:25:360:25:41

And then fitted a good quality kitchen with integrated appliances and a range cooker.

0:25:410:25:46

This high-spec, high-style finish will be really appreciated by potential purchasers.

0:25:460:25:53

The kitchen is the heart of a family home and the open fire will be a cosy feature for this room.

0:25:530:26:01

And Cameron has added a cloakroom with a WC.

0:26:010:26:04

The sitting room has the same bright, fresh, family-friendly appeal.

0:26:040:26:10

He has removed the chimney breast to create more living space

0:26:110:26:15

and has vanquished all signs of the damp which looked and smelled bad.

0:26:150:26:20

Cameron and Karen work hand-in-hand on their renovations.

0:26:200:26:23

And whilst Cameron gets down and dirty with the hard labour,

0:26:230:26:27

Karen ensures the cosmetic appearance makes an impact.

0:26:270:26:31

My wife does quite a bit of interior designing on all the work we do.

0:26:310:26:35

She chose the colour scheme, the tiles, wallpaper, even down to the carpets and the vinyl floor.

0:26:350:26:41

But we always try and take on a property as if we'd like to live there ourselves.

0:26:410:26:46

And we just feel that the look has to be right

0:26:460:26:50

and whoever came in to look at it to buy it would say, "Wow, this is just what we want."

0:26:500:26:55

The instant impact of the quality finish and modern interior design continues in the master bedroom.

0:26:550:27:01

Karen's choice of colour palette and feature wallpaper

0:27:010:27:05

brings warmth and personality to the house.

0:27:050:27:09

The back bedroom, once riddled with cracks snaking across the walls and ceiling,

0:27:090:27:15

now looks as good as new.

0:27:150:27:17

All the plaster was removed and then we dry-lined it and skimmed it.

0:27:180:27:24

Cameron's matter-of-fact, can-do attitude makes it all sound so easy.

0:27:240:27:29

We've developed quite a few properties. This has been comparatively straightforward.

0:27:290:27:34

It was a bit of a walk in the park.

0:27:340:27:36

And in the bathroom, he's made the best use of a tight space.

0:27:360:27:41

The bathroom didn't work, so we decided to put the bath in the opposite direction,

0:27:420:27:48

reduced the door size to allow access,

0:27:480:27:51

and then put in a shower, towel rail and full white suite, top to bottom.

0:27:510:27:56

He's managed to finish the work within his three-and-a-half months' schedule,

0:27:560:28:01

but did he keep to his £15,000 budget?

0:28:010:28:05

The budget, basically, stayed as it was. We spent 14,400.

0:28:070:28:11

The extension, we didn't build, which would've cost us more.

0:28:110:28:15

But we decided to put a higher spec on the inside of the house, so the money was actually balanced out.

0:28:150:28:21

That means the couple's total outlay here is 135,400,

0:28:220:28:27

so within schedule and under budget.

0:28:270:28:30

What is the secret of their success?

0:28:320:28:35

I look at every property on the basis that I can do the majority of the work myself.

0:28:370:28:43

I am quite competent in most trades. And we constructively look at the property,

0:28:430:28:48

take it apart and put it back together again.

0:28:480:28:52

And we try and increase the value and to increase the wow factor,

0:28:520:28:56

so as when we sell it, we sell it quickly.

0:28:560:28:59

In fact, the property has already been snapped up.

0:28:590:29:03

We completed the job. We've had it valued. We put it on the market.

0:29:030:29:08

And we sold it within 24 hours. And we had three buyers at the asking price.

0:29:080:29:13

Now, that's what I call a wow factor.

0:29:140:29:17

Let's find out how much two local property experts

0:29:170:29:21

think the property could achieve

0:29:210:29:24

and how much Cameron and Karen actually sold it for.

0:29:240:29:28

My first impressions of the property

0:29:280:29:30

is that they've done an excellent job.

0:29:300:29:33

They've put wallpaper up and kept colours nice.

0:29:330:29:36

-And the kitchen and bathrooms are lovely.

-The property's been been done to a high standard.

0:29:360:29:41

The kitchen/breakfast room is the main selling point.

0:29:410:29:45

The rest has been done to a lovely standard.

0:29:450:29:48

They've put in a downstairs cloakroom, which with a family home is an excellent idea

0:29:490:29:54

and a really good selling point.

0:29:540:29:56

The decoration has been done to a lovely standard, retaining some original features as well

0:29:560:30:01

with picture rails and high skirting boards,

0:30:010:30:04

but also wallpaper in some rooms and some lovely finishing touches.

0:30:040:30:08

These experts really like all the couple have achieved with this property.

0:30:080:30:13

So bearing in mind their total spend of 135,400, what could they sell for?

0:30:130:30:19

If I were to market this property, I would put it on the market in the region of £170,000.

0:30:200:30:27

If the property was to go on the open market,

0:30:270:30:30

I'd expect to see it with an asking price in the region of £175,000.

0:30:300:30:34

Of course, Cameron has already accepted an offer he received

0:30:350:30:40

within 24 hours of putting it on the market, but for how much?

0:30:400:30:44

We had the two agents come out on the Tuesday.

0:30:440:30:47

We had two viewings for the following day. By the end of the following day, we had five viewings

0:30:470:30:53

and three offers of the asking price of 170. I'm over the moon with that.

0:30:530:30:57

Cameron's a perfect example for any would-be property developer.

0:30:570:31:01

He's really got this business cracked.

0:31:010:31:05

# Crack it... #

0:31:050:31:08

I'm in Darlington, County Durham.

0:31:110:31:13

The architecture here pays tribute to its rich Quaker heritage

0:31:140:31:20

with a statue of the first Quaker MP, Joseph Pease, taking pride of place in the town centre.

0:31:200:31:26

Well, the property I'm here to see is in the popular west end part of Darlington.

0:31:270:31:32

And walking along these pleasant residential streets, it's easy to see why it is so popular.

0:31:320:31:37

The property is a one-bedroom flat in this block. It looks fairly well-maintained from the outside.

0:31:370:31:43

Let's take a look inside.

0:31:430:31:45

The flat's on the second floor of this 25-year-old building.

0:31:450:31:50

And its guide price at auction was 59,950.

0:31:500:31:54

The approach is lovely with expansive gardens,

0:31:540:31:57

making you feel as though you're in a very peaceful park.

0:31:570:32:01

Well, whenever you're looking at a flat in a block, before you even get to the flat itself,

0:32:010:32:07

you want to look at the communal areas, the stairs, the grounds, etc.

0:32:070:32:11

The outside looks pretty good and it gets better in some ways when you come inside

0:32:110:32:16

because the stairway here has got a nice carpet. It's been recently painted. It's all boding well.

0:32:160:32:22

So hopes are set pretty high as you come through the door.

0:32:220:32:26

And do you know what? First impressions? Not too bad.

0:32:260:32:30

The carpet's tired. But it doesn't smell damp. Looks OK. Reasonably clean walls. Nice colours.

0:32:300:32:36

Bathroom? Yeah, reasonably trendy. So we like that. It's got a white suite. That's good news.

0:32:360:32:42

That's your bedroom. It's not huge, but not bad for a one-bedroom flat.

0:32:420:32:46

Kitchen? Well, yeah... It's not that huge.

0:32:460:32:50

But again, it's a one-bedroom flat.

0:32:500:32:52

And actually the units look to be in reasonable condition, so I'm liking this place a lot.

0:32:520:32:58

In fact, it's in such good nick that you could move in straight away without having to do much at all.

0:32:580:33:04

And finally, the living room. Yes, I mean, you've even got a balcony, looking out over the gardens!

0:33:040:33:11

I have to say it -

0:33:110:33:13

there really is nothing wrong with this place.

0:33:130:33:17

# Something tells me I'm into something good

0:33:170:33:20

# Something tells me I'm into something... #

0:33:200:33:24

And looking out over those well-kept gardens, are they expensive as well as expansive?

0:33:240:33:31

Don't forget that when you buy a flat it's really important that you check out the lease

0:33:320:33:38

or get your solicitor to do so. Along with the other tenants,

0:33:380:33:42

you will be partly responsible for the upkeep of the grounds, such as these communal lawns.

0:33:420:33:47

They won't cost much to look after, but you need to be aware of that.

0:33:470:33:51

In fact, the service charge here is £500 per annum, including building insurance.

0:33:510:33:57

But the ground rent's a mere £10 a year.

0:33:570:34:00

Time for a local estate agent to give us his opinion

0:34:000:34:03

of this cosy little flat.

0:34:030:34:06

Well, it needs a little bit of work doing to it.

0:34:060:34:08

But it's ideal for a first-time buyer

0:34:080:34:10

who wants their first home in a popular part of town.

0:34:100:34:14

As it's on the top floor, it might not suit everybody

0:34:140:34:17

because there's two flights of stairs to go up, carrying shopping.

0:34:170:34:21

Might be a problem. But apart from that, I don't see a great deal wrong.

0:34:210:34:25

I can't help but agree and being so close to the town centre, it could make an ideal rental unit.

0:34:250:34:32

What kind of income could it generate?

0:34:320:34:34

In the rental market, I would suggest it would achieve a rental income of around about £450 per calendar month.

0:34:340:34:41

If you manage to get the place for near its guide price of around 60,000,

0:34:420:34:47

it would be ripe for rental. It could achieve a very healthy yield,

0:34:470:34:52

making this gem of a property even more appealing.

0:34:520:34:55

# You're so desirable

0:34:550:34:57

# I can't resist you... #

0:34:570:35:00

What could the resale value be once it's been freshened up a bit?

0:35:000:35:05

In the sales market, I would suggest once the property's finished,

0:35:050:35:09

it would sell for a price of between £80,000 and £85,000.

0:35:090:35:13

Well, more often than you might think, properties like this do come up for auction.

0:35:130:35:18

There is absolutely nothing wrong with this flat.

0:35:180:35:21

You could literally move into it as it is or rent it out.

0:35:210:35:25

It's just a case of being there on the auction day.

0:35:250:35:29

Let's find out who was when it went under the hammer.

0:35:290:35:32

We'll move on now to lot number 46.

0:35:340:35:36

There with a price guide of 59,950.

0:35:360:35:39

60,000. Do I have 60,000 in the room anywhere?

0:35:390:35:42

60,000 right on the back wall.

0:35:420:35:44

Can I ask for 61,000 anywhere?

0:35:440:35:46

I've got 60,000 right on the back. I need 61.

0:35:460:35:51

61,000. It's against you. It's the lady at 61.

0:35:510:35:54

62 bid. 63.

0:35:540:35:56

64. 65.

0:35:560:35:58

You're shaking. At 65, do you not want to nod? We're selling to the lady at 65,000.

0:35:580:36:04

I'll take a half?

0:36:040:36:06

I'm selling it once at 65.

0:36:060:36:09

I'm selling for the second time at £65,000. Sold.

0:36:090:36:14

£65,000 to the lady in the pink shirt.

0:36:140:36:18

'The victor in that lightning fast auction was Jan.

0:36:180:36:22

'She bought the flat for £65,000 and was actually bidding for her daughter Abby.

0:36:220:36:28

'I went to meet Abby and her father Ray to find out more.'

0:36:310:36:35

-Abby, Ray, lovely to meet you both.

-And you.

-Hello.

-Congratulations.

-Thank you.

0:36:350:36:40

-Tell me why you wanted to buy this place.

-This is my first house.

0:36:400:36:45

I'm 23, so it's my first venture into getting my own home.

0:36:450:36:48

Wow! It is really difficult these days for first-time buyers to get on the property ladder.

0:36:480:36:54

-So what was your story?

-I've been living at home since I moved back from university three years ago.

0:36:540:36:59

I've been saving up, so I had some help from my family in guiding me through the financial side.

0:36:590:37:04

-Great. What was it about it that you liked, Abby?

-I think being by myself and only being 23,

0:37:040:37:10

it's just the perfect size for what I want. The kitchen is a good size. The living room's definitely a good size.

0:37:100:37:16

The balcony brings in a lot of light. And also the local area.

0:37:160:37:20

The site across from us is an old college site with brand-new buildings on,

0:37:200:37:25

so it obviously will increase the house prices later on when I sell it.

0:37:250:37:28

'Abby's a teacher

0:37:290:37:32

'and has obviously been doing her homework where property's concerned.

0:37:320:37:36

'Dad Ray has retired from the manufacturing industry

0:37:360:37:39

'and manages three buy-to-let properties with Abby's mum Jan.

0:37:390:37:43

'He's obviously given Abby lessons in what to look for and she's been a very attentive student.'

0:37:430:37:49

Well, we looked about three months ago to make a decision on buying property, saw this place.

0:37:490:37:55

I came, then you came to have a look at it. Interesting, because it's the first time I've been to an auction.

0:37:550:38:01

-And we took it from there, really.

-Am I right in thinking it was up for sale for quite a lot more?

0:38:010:38:07

It had been for sale for 12 months, which is presumably why they put it into the auction.

0:38:070:38:12

-And I think 12 months ago, it was about 89,000.

-Right.

0:38:120:38:16

-There's a property on the same block here at 78, currently.

-Right.

0:38:160:38:20

So we thought the price at anywhere from 60 to 68,

0:38:200:38:23

which is probably the maximum we would've paid, was about right. So worked out very well.

0:38:230:38:29

'That's definitely the way to do it.

0:38:310:38:33

'Although it was Ray and Abby's first property auction, they knew exactly what it was worth

0:38:330:38:39

'and how much they were prepared to pay.

0:38:390:38:42

'Now they've got the place, they want to maximise their investment.'

0:38:420:38:47

Basically, it's looking tired and old, so we're looking at replacing, for example, the external windows

0:38:470:38:53

-and the sliding doors for a start.

-So replace the windows, right?

0:38:530:38:57

-Um... Why?

-Basically, because it's going to be my home.

0:38:570:39:01

You could practically live in here as a rental property or if you want to come straight in to live in it,

0:39:010:39:07

but I want to make it a home, and for resale later on, to increase the price of the property.

0:39:070:39:12

And in terms of energy efficiency, it's better off replacing old, tired, wooden, aluminium windows

0:39:120:39:18

for the better, modern alternatives. As well as that, we're looking at maybe insulating the roof space,

0:39:180:39:23

so we'll look at some storage up there and more insulation as it helps energy efficiency.

0:39:230:39:29

I have to say, to your credit, a lot of 23-year-olds wouldn't be putting more insulation in the loft

0:39:290:39:34

and putting in new double glazing! It would be like funky furniture and plasma screen TVs.

0:39:340:39:41

-But you're really thinking about the property.

-Well, I've got previous experience from helping out

0:39:410:39:47

and project-managing rental properties that my parents have bought.

0:39:470:39:52

So I have got a bit of a wise head on myself, basically in terms of re-doing properties.

0:39:520:39:57

And yes, sadly, my first thought is insulation!

0:39:570:40:00

'It seems that Ray and his wife have taught science teacher Abby

0:40:000:40:04

'all she needs to know about developing her first property.'

0:40:040:40:08

# We've got the chemistry right

0:40:080:40:11

# We didn't have to try

0:40:110:40:14

# It just turned out that way Whoa-oa-oa... #

0:40:140:40:17

'Abby won't stop at just external improvements to her new bachelorette pad.'

0:40:170:40:22

Kitchen, although it looks new, the layout doesn't work. The sink's the wrong way round. It's not manageable.

0:40:220:40:28

We're going to have a new kitchen in there, including new work surfaces.

0:40:280:40:33

Laminated flooring from kitchen to bathroom.

0:40:330:40:36

They'll be all matching. And a new bathroom. It's looking tired.

0:40:360:40:40

And we're hoping to get, basically, a shower/bath put in.

0:40:400:40:44

-How much will you spend?

-We reckon 6,000. In addition, the heating as well, as the boiler's 25 years old.

0:40:440:40:51

-Could be tight. You're going to do the kitchen, bathroom, boiler and the windows.

-Well...

-And insulation.

0:40:510:40:57

My wife is a dab hand on the internet.

0:40:570:40:59

-The bathroom suite cost £350 off the internet.

-You've got it already?

0:40:590:41:04

-Yeah. That's in the garage.

-Is it? All right.

0:41:040:41:07

'They've certainly got big plans and will need to keep a tight rein on those purse strings

0:41:080:41:13

'to bring the work in on budget. I wonder who'll be the driving force in this developing duo?'

0:41:130:41:19

Well, both of us, really. But I'm retired now, so I get lumbered.

0:41:190:41:23

-So I'm the project manager.

-That's what dads are for. Sorry.

0:41:230:41:27

So on a day-to-day basis over the next few weeks, I'll be here, organising the electrician, plumber,

0:41:270:41:33

kitchen fitter, that kind of thing.

0:41:330:41:36

-So what kind of timescale, Abby?

-We want to turn it round very quick. You want to get me out of the house!

0:41:360:41:42

-Hopefully, turn it round in two months, two-and-a-half months.

-Right. And then you'll be in.

-Yeah.

-Yeah.

0:41:420:41:48

-Will you be sad to see her go or happy?

-We've had practice cos she was at university for three years,

0:41:480:41:55

-so we know what it's like, but of course we'll miss her.

-I'm delighted for you. It's a great flat.

0:41:550:42:00

-And I wish you all the best.

-Thank you.

-Good luck.

-Thank you.

-We look forward to seeing how you get on.

0:42:000:42:07

Well, Abby clearly knows exactly what she's doing. With Dad's help, I'm sure she'll get on just fine.

0:42:070:42:13

But she is undertaking some major projects - windows, doors, kitchen, bathroom.

0:42:130:42:19

I mean, can she really keep under that £6,000 budget? I think it's going to be tight.

0:42:190:42:24

You can find out how she gets on later in the show.

0:42:240:42:27

If you want to profit from property, timing is crucial. And you've got to be flexible with your plans.

0:42:310:42:38

Yes, and don't let time pass you by. So here's how today's buyers got on.

0:42:380:42:43

'Let's make our way back to Maidstone, where just off this main road,

0:42:440:42:49

'I visited this very tiny telephone repeater station.

0:42:490:42:53

'It was purchased by Anna for her son Arkan.

0:42:550:42:59

'She was gripped by auction fever and paid a whopping £25,000 for the property,

0:42:590:43:03

'plus the quarter-acre plot it sat on.

0:43:030:43:07

'Her son Arkan dreamed of turning this little brick building into his new home.'

0:43:070:43:13

-You want to live in this?

-Yeah. It would be brilliant, yeah.

-And what would it look like?

0:43:130:43:19

It would look like a tiny little cottage, you know. I'll build a chimney on the side. Yeah.

0:43:190:43:24

Anna broke the golden rule of buying at auction. She didn't read the legal pack before she bought it

0:43:240:43:30

and didn't know they'd struggle to get planning permission.

0:43:300:43:34

Luckily, she and Arkan were prepared to play the long game to see if the situation might change.

0:43:340:43:40

A whole one year later to the day, we're back.

0:43:400:43:44

So what's new?

0:43:440:43:47

# I can see that nothing's changed at all... #

0:43:470:43:51

What have Anna and Arkan been up to?

0:43:510:43:54

Hardly anything.

0:43:550:43:58

Hmm... Yes, I can see that.

0:43:580:44:00

We're a bit naughty. We haven't done much.

0:44:000:44:03

Just talking, really, to everybody and asking their opinions and...

0:44:030:44:07

We'll see how it goes. We haven't done a lot.

0:44:070:44:10

In fact, they have yet to apply for planning permission

0:44:100:44:14

as they were advised by their architect that it would be impossible to obtain.

0:44:140:44:20

I feel a bit... A bit restless cos I do want to, um...get things moving.

0:44:210:44:27

But I don't... I don't want to make any mistakes either, you know, so it's quite...

0:44:270:44:32

I don't mind, to be honest, taking my time. I think it's a safe option, really.

0:44:320:44:37

And I'd rather be safe than sorry, so... And I love this little building. It's very small.

0:44:370:44:42

But I know I can... I would definitely love to live in this.

0:44:420:44:46

It's like a little cottage, really.

0:44:460:44:48

Arkan's wise to be cautious. As long as they don't do anything without planning permission,

0:44:480:44:54

the land will likely increase in value, so they won't lose out by sitting on it

0:44:540:44:59

and waiting to see if the planning situation changes.

0:44:590:45:04

The lands adjacent to this plot have only just been sold, so if we could wait to see what happens,

0:45:040:45:11

if any development takes place on the adjacent lands, then that would, you know...

0:45:110:45:16

That would be a lot better for us.

0:45:160:45:18

Arkan's right. If the much bigger plots of land either side were to get planning permission,

0:45:180:45:24

that could change things for him, but is it really a ray of light?

0:45:240:45:28

# Quicker than a ray of light

0:45:330:45:37

# Quicker than a ray of light... #

0:45:370:45:41

For the moment, for Arkan and Anna,

0:45:410:45:44

it's a case of hold tight and wait and see.

0:45:440:45:48

We invited two local property experts to give us their opinions,

0:45:480:45:53

including the estate agent who viewed it previously.

0:45:530:45:56

It's my second time here and I'm not surprised nothing's been done

0:45:560:46:01

because it's the sort of something that you don't know what to do with.

0:46:010:46:05

I'm not surprised that nothing's yet been built. I think for the area and the size of the plot

0:46:050:46:11

and a severe lack of residential property in the immediate location,

0:46:110:46:16

it's not surprising they haven't been able to do anything with it.

0:46:160:46:20

What about possible commercial use?

0:46:210:46:24

Some form of commercial use,

0:46:270:46:30

subject to the relevant planning permissions, could be found.

0:46:300:46:34

There's a lot of local farms and produce in the area.

0:46:340:46:37

So whether it could be used as some sort of farm shop or local flowers

0:46:370:46:41

or something along those lines would probably be its best use as it currently stands.

0:46:410:46:47

The problems with sort of doing anything with this property is going to be the cost of services,

0:46:470:46:53

the main road which is a really difficult road to come out on to.

0:46:530:46:57

So with all these into consideration, it's better that they just sit on it for the time being.

0:46:570:47:02

Bearing in mind Anna's purchase price of 25,000, what could the property be worth at the moment?

0:47:020:47:09

I think the value of this plot is probably somewhere in the region of around £20,000 for it.

0:47:090:47:16

Again, it's just really what somebody might need it for.

0:47:160:47:20

It really doesn't have much of a value to most people

0:47:200:47:24

because it isn't anything. It can't be used for anything.

0:47:240:47:28

It's essentially a big back garden with a shed, so its value is what someone's prepared to pay for it.

0:47:280:47:35

Remember at the auction, the underbidder was prepared to pay 23,000,

0:47:370:47:42

so over the long term, it's unlikely Anna will lose money on her £25,000 investment.

0:47:420:47:48

So what's next for this property developing mother and son?

0:47:490:47:54

If we succeed in this one, let's say... I think we'll give it for three years?

0:47:550:48:00

-We'll never fail. We're not going to fail.

-In the next three years, we'll have to finish this project here.

0:48:000:48:06

And then maybe we sell it and with that money we can buy a bigger one.

0:48:060:48:11

-We can possibly do it. But next time you'll be the boss and I'll be the assistant.

-Oh, right!

-Yeah?

0:48:110:48:18

No, you'll always be the boss.

0:48:180:48:20

I wish them both well, but let's hope that after this cautionary tale,

0:48:200:48:25

they do their research next time.

0:48:250:48:28

# Quicker than a ray of light I'm flying... #

0:48:280:48:33

'The clock's been ticking and it's time to return to Darlington.

0:48:390:48:44

'It was here that we saw this lovely little one-bed, top floor flat in a 25-year-old apartment complex

0:48:440:48:50

'in a highly desirable area.

0:48:500:48:53

'The decor was dated

0:48:530:48:55

'with '80s design fads, such as dark wood doors and Artex ceilings.

0:48:550:49:00

'But all in all, it was in very good nick.

0:49:000:49:03

'It was purchased for £65,000 by 23-year-old school science teacher Abby.

0:49:030:49:10

'It was to be her first home.

0:49:100:49:12

'Her property developer dad Ray would be lending a helping hand with the renovations.

0:49:120:49:18

'Abby was viewing this flat, not only as her bachelorette pad,

0:49:180:49:22

'but also as the first addition to her property portfolio.

0:49:220:49:25

'And she was more concerned with keeping the flat warm than flat-warming parties.'

0:49:250:49:30

We're looking at maybe insulating above. We own the roof space.

0:49:300:49:34

I have to say, to your credit, a lot of 23-year-olds,

0:49:340:49:37

their first things wouldn't be putting more insulation in the loft and putting in new double glazing!

0:49:370:49:43

It'd be like funky furniture and plasma screen TVs.

0:49:430:49:47

Yes. Sadly, my first thought is insulation!

0:49:470:49:50

'Science teacher Abby was intent on creating the right chemistry between neutral colours

0:49:500:49:57

'that will help her sell the flat in the future and reflecting her own taste for bright and modern design.

0:49:570:50:03

'We returned four months later to see if she's managed to combine those elements successively.'

0:50:030:50:10

# Ah, ah All about chemistry

0:50:120:50:15

# Won't you show me everything you know?

0:50:150:50:20

# Ah, ah All about chemistry

0:50:200:50:23

# Oh-whoa-oh-oh-oh... #

0:50:230:50:27

It's definitely got a newer hint to it.

0:50:280:50:31

-It's much more modern.

-Lighter.

-It's cleaner, lighter. Definitely much more of a home now.

0:50:310:50:37

# It's all about chemistry... #

0:50:380:50:41

I tried to stay quite neutral in some of the colours I picked,

0:50:410:50:45

but then have feature colours. So in the living room, there's purples and pinks, but not too much.

0:50:450:50:51

Does her property developer dad Ray like it?

0:50:510:50:55

Yes, I do. Yeah. It's definitely girly, I think.

0:50:550:50:59

Not just the wallpaper, but some of the decor as well, as you'd expect, because it is a home.

0:50:590:51:04

That's the important part. It's not just to sell on, it's for you to live in. And that's great.

0:51:040:51:10

# Oh, baby, it's home sweet home

0:51:100:51:13

# Do-do-do-do-do, do-do... #

0:51:130:51:16

Well, I think Abby's experiment has been a success.

0:51:160:51:21

# Home sweet home Do-do-do-do-do, do-do... #

0:51:210:51:24

The feature wallpaper in the living room is bold and bright

0:51:240:51:28

while neutral-coloured walls and carpets ensure it's not overpowering.

0:51:280:51:33

I'm particularly impressed by the kitchen and the quality of finish.

0:51:330:51:37

OK, in the kitchen, we have replaced the windows with new double glazing.

0:51:420:51:48

We took out all the old kitchen surfaces and we replaced them with brand-new ones.

0:51:480:51:53

Also replaced all the radiators. Brand-new boiler as well,

0:51:530:51:56

which meant we had to do all the plumbing in the flat.

0:51:560:51:59

We replaced the very unattractive floor tiles on the wall

0:51:590:52:03

with some nice, much more subtle wall tiles. But they're much better and much nicer.

0:52:030:52:09

Abby and Ray have done a fantastic job in the kitchen. What about that gloomy bathroom?

0:52:090:52:15

# Home sweet home... #

0:52:150:52:17

This little flat packs a big punch in terms of instant appeal.

0:52:170:52:22

Abby and Ray have spent money where it counts and can be recouped - the kitchen and the bathroom.

0:52:220:52:28

We kind of went for the hotel look, as my friends said. They all say it looks a bit like a hotel now.

0:52:280:52:34

But it's quite neutral, so if I do sell on in the future, it's nothing garish that other people won't like.

0:52:340:52:40

So it's very much neutral and definitely more modern now.

0:52:400:52:44

Abby and Ray's efforts have really transformed this flat.

0:52:450:52:49

The quality of finish and attention to detail is evident throughout.

0:52:490:52:53

They've even insulated the roof.

0:52:530:52:56

Abby's love of contemporary design can be seen in the bedroom.

0:52:560:53:00

She purchased this property with a mortgage while Mum and Dad were paying for the renovation.

0:53:010:53:07

So how deep were her parents' pockets?

0:53:070:53:11

Originally, we looked at, as we bought the property for 65,000, spending around about 6,000,

0:53:110:53:18

-but we kind of went over that, didn't we?

-Yeah. We came in at 10,000.

0:53:180:53:22

Which I think probably reflects a little bit that it's Abby's home.

0:53:220:53:26

So we probably spent more on items than we would've done

0:53:260:53:30

and previously have done when we've been doing buy-to-let, as you do.

0:53:300:53:36

However, that £4,000 overspend includes all the replacement windows and balcony door,

0:53:360:53:41

plus new boiler and plumbing, so not too bad.

0:53:410:53:45

They also managed to complete the work within their two-month schedule.

0:53:450:53:50

Now the flat's looking so inviting, does Abby see herself living here long term?

0:53:500:53:56

I guess there's two different options in, like, two years' time.

0:53:560:54:00

Maybe sell on, but probably looking more at keeping this property

0:54:000:54:04

and just renting it and buying another place as well,

0:54:040:54:07

-so kind of building up a property portfolio.

-She's got the family bug.

0:54:070:54:11

Before you move out, Abby, I hope you find time for that flat-warming party.

0:54:110:54:17

I was... I don't know. I don't want to get my carpets dirty now.

0:54:170:54:21

I'm quite scared of inviting people round cos I don't want to touch anything yet.

0:54:210:54:26

Oh, come on, Abby, you're only young once.

0:54:260:54:30

But before she sends out the party invites,

0:54:300:54:34

we invited two local estate agents along

0:54:340:54:37

to see if they're as impressed by the place as I am.

0:54:370:54:40

Wow!

0:54:400:54:41

Not enough words to say to it. What a beautiful job!

0:54:410:54:45

Very tastefully appointed. The decor is absolutely fantastic.

0:54:450:54:50

I love the way it's all put together in every respect.

0:54:500:54:54

The owners have done a very good job.

0:54:540:54:57

It's very tastefully appointed. It's very attractive.

0:54:570:55:00

Very appealing. I like the kitchen.

0:55:000:55:02

I like the bathroom and the decor. I think they've done an excellent job.

0:55:020:55:07

Bearing in mind Ray and Abby's total outlay of 75,000,

0:55:070:55:12

how much could this apartment achieve if sold?

0:55:120:55:16

I'd market this property at offers invited in the region of £85,000.

0:55:170:55:23

If the owners were to put the property on the open market to sell,

0:55:230:55:27

I would suggest an asking price of somewhere around about £80,000 to £85,000.

0:55:270:55:32

-I think that's probably what we were thinking.

-Yeah. A good £5,000, maybe even £10,000 profit on that,

0:55:320:55:38

-which is...

-Good.

-Really, really good.

0:55:380:55:41

Not too bad at all. But Abby wants to keep this property even when it comes time for her to move on.

0:55:410:55:48

So what could it achieve as a rental?

0:55:480:55:51

Rental valuation, I would estimate to be £425 per month.

0:55:530:55:58

In my opinion, in the current market,

0:55:580:56:00

I would see the rental value for this property at somewhere around about £400 to £425 per calendar month.

0:56:000:56:06

-Wow!

-That's very good.

-That's much more than I thought it would be.

0:56:060:56:10

-We were thinking 350.

-We've got properties rented for that kind of money,

0:56:100:56:15

two or three-bedroomed houses, so that's really good.

0:56:150:56:18

Those figures could give Abby a rental return of between 6.5% and 7%.

0:56:180:56:23

So would Ray and Abby go to another auction?

0:56:230:56:28

As long as you do the homework and find the right place that you're looking for,

0:56:280:56:33

rather than just going to an auction and panicking when you get there.

0:56:330:56:37

Make sure it's the one you want and where you want it. And if you can't afford it, don't buy it.

0:56:370:56:42

# Home sweet home... #

0:56:430:56:46

-We'll have more stories for you next time on Homes Under The Hammer.

-See you then.

-Goodbye.

-Goodbye.

0:56:500:56:57

Subtitles by Subtext for Red Bee Media Ltd - 2011

0:57:140:57:18

Email [email protected]

0:57:180:57:21

Martin Roberts and Lucy Alexander visit a cracking property in Devon, a plot with potential for development in Kent and a little flat in Darlington. All of these properties have been sold at auction; Martin and Lucy find out who bought them, and what they paid when they went under the hammer.