0:00:02 > 0:00:03Welcome to the programme.
0:00:03 > 0:00:06Despite the doom and gloom in the property market,
0:00:06 > 0:00:08buying at auction is still a very good thing to do.
0:00:08 > 0:00:12It's important to be cautious and, of course, do your research.
0:00:12 > 0:00:14But if you do that, you could find yourself a bargain.
0:00:40 > 0:00:43Well, if you are looking for variety and good value,
0:00:43 > 0:00:46then buying under the hammer may be for you.
0:00:46 > 0:00:50So here's what lured our buyers to the auction rooms on today's show.
0:00:51 > 0:00:53The interior of this Devon cottage
0:00:53 > 0:00:56is more Swedish sauna than rural retreat.
0:00:56 > 0:01:00I've never come across a kitchen/sauna before.
0:01:01 > 0:01:07This terrace in London has been converted into two teeny-tiny flats.
0:01:07 > 0:01:10In my opinion, this has got to be one house.
0:01:12 > 0:01:17And I'll be exploring this house in Leeds, IF I can get in, that is.
0:01:17 > 0:01:21A couple of minutes with a hedge trimmer will sort that out.
0:01:21 > 0:01:25All these properties have been sold at auction.
0:01:25 > 0:01:28We'll find out who bought them and what they paid
0:01:28 > 0:01:29when they went under the hammer.
0:01:29 > 0:01:31Sold.
0:01:41 > 0:01:43I'm in Roborough, a little village
0:01:43 > 0:01:46between Plymouth and Dartmoor National Park.
0:01:46 > 0:01:48You've got a pub, a few shops.
0:01:48 > 0:01:50But what attracts people here more than anything else
0:01:50 > 0:01:54is easy access to some quite simply stunning countryside.
0:02:03 > 0:02:05Well, the property I'm here to see
0:02:05 > 0:02:09is in one of the more desirable parts of the village.
0:02:09 > 0:02:13Mid-terrace, had a guide price of £115,000, two bedrooms.
0:02:13 > 0:02:16Let's see if it's desirable inside.
0:02:16 > 0:02:20Roborough has seen some housing development recently,
0:02:20 > 0:02:24but this row of cottages does give a taste of old village life.
0:02:24 > 0:02:28And this 19th-century cottage does have some kerb appeal.
0:02:28 > 0:02:31It will take a little bit of tidying up.
0:02:36 > 0:02:38That's interesting. One room that way,
0:02:38 > 0:02:41one room that way, stairs in the middle.
0:02:41 > 0:02:43Fairly traditional layout, I suppose.
0:02:43 > 0:02:46It could even have been two cottages knocked through to one.
0:02:46 > 0:02:48Let's come this way.
0:02:48 > 0:02:50I like the fact you've got this window seat
0:02:50 > 0:02:52and I bet if you stripped that back
0:02:52 > 0:02:54you'd find beautiful pitch pine under there.
0:02:54 > 0:02:57Not so sure about the old fireplace.
0:02:57 > 0:02:58That sort of lets the place down.
0:02:58 > 0:03:03But it's a reasonable-sized room. Ceilings could do with more head height,
0:03:03 > 0:03:05but I suppose it is a cottage.
0:03:05 > 0:03:06What's through there?
0:03:06 > 0:03:09Kitchen. We'll explore that in a minute.
0:03:09 > 0:03:10The other room on the other side.
0:03:10 > 0:03:14A mirror image of what's on that side again. The window seat.
0:03:14 > 0:03:17Panelling, strip it back, it could be beautiful.
0:03:17 > 0:03:20But beware, sometimes, behind there, you do get damp
0:03:20 > 0:03:22and it can turn into dry rot.
0:03:22 > 0:03:23So definitely check that out.
0:03:23 > 0:03:27Then, back towards the front door to where we started.
0:03:27 > 0:03:30Good start, really.
0:03:31 > 0:03:33There are signs of wear and tear
0:03:33 > 0:03:36but I reckon once you start stripping it back to its bare bones,
0:03:36 > 0:03:40there's the opportunity to create something really special here.
0:03:41 > 0:03:45So, to the rear of the property, down a few steps
0:03:45 > 0:03:48and into basically a kitchen and more.
0:03:48 > 0:03:49I'll come to that in a second.
0:03:49 > 0:03:51This is a kitchen bit.
0:03:51 > 0:03:55You could have fun with these units, basically throw them away,
0:03:55 > 0:03:58replace them with something more in keeping with this place.
0:03:58 > 0:04:00Not a bad-sized space, I have to say.
0:04:00 > 0:04:03Lots of light coming in through the roof light.
0:04:03 > 0:04:04Not good though -
0:04:04 > 0:04:07here is your bathroom and loo. Off the kitchen,
0:04:07 > 0:04:09just one door between the two,
0:04:09 > 0:04:11not ideal at all.
0:04:11 > 0:04:13I've seen that kind of stuff before.
0:04:13 > 0:04:15Then it gets really weird over this way.
0:04:15 > 0:04:18This low kind of like beam going across here.
0:04:18 > 0:04:22You step into what is basically a little anteroom for the kitchen,
0:04:22 > 0:04:24I suppose it's a dining room,
0:04:24 > 0:04:26but decked out in all this pine cladding,
0:04:26 > 0:04:28meaning it's more like a sauna
0:04:28 > 0:04:31and I've never come across a kitchen/sauna before.
0:04:31 > 0:04:35# Steamy windows... #
0:04:35 > 0:04:40For lots of reasons, I think this could be a pretty hot property! But if you can't stand the heat,
0:04:40 > 0:04:44get out of that kitchen and you will find a good-sized garden out back.
0:04:44 > 0:04:46If you put in French windows,
0:04:46 > 0:04:50they would really open up the rear of the house to this outside space.
0:04:52 > 0:04:55Upstairs are two double bedrooms, both in need of renovation.
0:04:55 > 0:04:58But they are representative of this house.
0:04:58 > 0:05:01It's got bundles of character and plenty of possibilities.
0:05:01 > 0:05:03The guide price was £115,000.
0:05:03 > 0:05:08We asked a local estate agent to give us the low-down
0:05:08 > 0:05:10on this two-bed cottage.
0:05:10 > 0:05:13The property was originally owned,
0:05:13 > 0:05:15we understand, by Maristow Estate,
0:05:15 > 0:05:18which is a large estate a couple of miles down the road
0:05:18 > 0:05:21and originally built for the farm workers of that estate
0:05:21 > 0:05:24and have been obviously handed down over the years.
0:05:24 > 0:05:27This is a good property, it's a sound property.
0:05:27 > 0:05:30The vendors have put in some good modernisation,
0:05:30 > 0:05:32believe it or not, looking around,
0:05:32 > 0:05:34but they've got double glazing,
0:05:34 > 0:05:36a relatively new gas central-heating system.
0:05:36 > 0:05:43So with that £115,000 guide price, how would you make the most of it?
0:05:43 > 0:05:45I think the kitchen here,
0:05:45 > 0:05:48you would need to knock this wall out and open it up
0:05:48 > 0:05:51to make a nice kitchen-diner or a family room, bearing in mind
0:05:51 > 0:05:53it backs out on to the garden.
0:05:53 > 0:05:55It's a lovely aspect of the property.
0:05:55 > 0:05:59What sort of return can the buyer expect on this place?
0:05:59 > 0:06:01Once this property's renovated,
0:06:01 > 0:06:05I feel it would be worth in the region of £160,000 to £165,000.
0:06:05 > 0:06:08Rental for this property once refurbished
0:06:08 > 0:06:12would be between £600 and £650 per calendar month.
0:06:16 > 0:06:19Well, this is a great little auction purchase.
0:06:19 > 0:06:21Enough space to play around with inside, yes,
0:06:21 > 0:06:24some internal modifications and updating required.
0:06:24 > 0:06:26But there's money to be made.
0:06:26 > 0:06:28Let's see who spotted it at the auction.
0:06:31 > 0:06:35Lot number 30. We have a guide price of £115,000.
0:06:35 > 0:06:38Anybody going to start me off with £100,000 then?
0:06:38 > 0:06:40£90,000 then.
0:06:40 > 0:06:42£90,000 I have, thank you. £90,000.
0:06:42 > 0:06:46Bid for £95,000? 95, thank you, sir.
0:06:46 > 0:06:4997 somewhere. 97 at the back.
0:06:49 > 0:06:5299 somewhere. £99,000.
0:06:52 > 0:06:55£99,000 in the doorway.
0:06:55 > 0:06:57£100,000. I have £100,000.
0:06:57 > 0:06:59There's a lot of interest,
0:06:59 > 0:07:01but progress is rather slow.
0:07:01 > 0:07:04So we rejoin it later at £123,000.
0:07:04 > 0:07:07123, thank you.
0:07:07 > 0:07:09Looking for 124? 124.
0:07:09 > 0:07:11125 somewhere?
0:07:11 > 0:07:15We have 124 on my right down here.
0:07:15 > 0:07:16Looking for 125.
0:07:16 > 0:07:18125, thank you.
0:07:18 > 0:07:21126. 126? Pause it a moment.
0:07:21 > 0:07:23125-and-a-half then?
0:07:23 > 0:07:27125-and-a-half I have. 125-and-a-half I have. 126?
0:07:27 > 0:07:31OK, so we are out at 125-and-a-half on my right here.
0:07:31 > 0:07:34Looking for 126?
0:07:34 > 0:07:38Then we have, I'm afraid, to pass that one by, I'm sorry. Very close, very close.
0:07:38 > 0:07:41Despite all that bidding, the property failed to meet its reserve price.
0:07:41 > 0:07:44But, after some behind-the-scenes negotiation
0:07:44 > 0:07:47it was finally sold for £128,000.
0:07:48 > 0:07:52The new owners who were bidding on the day are Ian and Tina.
0:07:52 > 0:07:53Ian's a carpenter by trade,
0:07:53 > 0:07:57whilst Tina runs their management consultancy business.
0:07:57 > 0:08:00They're also building up a small property portfolio.
0:08:04 > 0:08:05Tina, Ian, lovely to meet you both.
0:08:05 > 0:08:08- You too.- Congratulations.- Thank you.
0:08:08 > 0:08:09Why did you want to buy it?
0:08:09 > 0:08:11We like doing up properties.
0:08:11 > 0:08:15We do about one a year and we usually rent them out,
0:08:15 > 0:08:19certainly in this current market, that's what we've been doing.
0:08:19 > 0:08:21So this was our one for this year.
0:08:21 > 0:08:25This will be the couple's third property in the West Country
0:08:25 > 0:08:27but their fifth in total.
0:08:27 > 0:08:31They're from West Sussex where they bought property for investment,
0:08:31 > 0:08:36but after selling their portfolio, they moved to Devon to escape the rat race.
0:08:36 > 0:08:39And what a place to do it.
0:08:39 > 0:08:41So, Tina, why this particular property?
0:08:41 > 0:08:45- Well, we live on the Moors about five miles that way.- Oh, lovely.
0:08:45 > 0:08:48And Roborough is known to be a really nice little village.
0:08:48 > 0:08:51It's got a real village feel,
0:08:51 > 0:08:54but you're a few minutes from Plymouth city.
0:08:54 > 0:08:56So it's a great rental location.
0:08:56 > 0:08:58We've got Derriford Hospital down the road,
0:08:58 > 0:09:01so you've got nurses and doctors visiting the area
0:09:01 > 0:09:04and looking for short-term lets.
0:09:04 > 0:09:06So, we tend to look for nice location,
0:09:06 > 0:09:09- we like the older property as well.- Yes.
0:09:09 > 0:09:12We like putting the original features back in
0:09:12 > 0:09:16and really trying to bring a contemporary edge.
0:09:16 > 0:09:20- But we like the original properties. - Kick some fresh life into them. - Yeah.
0:09:21 > 0:09:24I reckon they have quite a renovation project on their hands.
0:09:24 > 0:09:29The temptation with a rental property is to concentrate on the finances,
0:09:29 > 0:09:32but with their aim to restore the original features,
0:09:32 > 0:09:38it's clear that these two really care about the places they take on.
0:09:38 > 0:09:40Tell me what you are going to do to sort it out?
0:09:40 > 0:09:42We'll start top-to-bottom,
0:09:42 > 0:09:47completely refurbish right the way throughout, inside and out.
0:09:47 > 0:09:51We'll rewire, we'll move plumbing wherever required.
0:09:51 > 0:09:53The ceilings will probably need to come down,
0:09:53 > 0:09:55so they'll be renewed,
0:09:55 > 0:09:56remodel the bathroom,
0:09:56 > 0:09:59we'd like to try and squeeze an en suite in upstairs
0:09:59 > 0:10:02just so there is an upstairs facility.
0:10:02 > 0:10:05What will you do with the kitchen? It's a bit weird.
0:10:05 > 0:10:07It is, yes.
0:10:07 > 0:10:10It's a bit of a walk-through,
0:10:10 > 0:10:13so we may well section a small part of the kitchen off
0:10:13 > 0:10:15to provide for a utility area
0:10:15 > 0:10:19and separate the bathroom from the kitchen a little further,
0:10:19 > 0:10:24and then we'll move the kitchen all towards one end
0:10:24 > 0:10:28and so leaving us with a kitchen-breakfast area.
0:10:28 > 0:10:32- Are you planning to take out the beam that goes across?- Yes.
0:10:32 > 0:10:36- Yes, and the wood panelling throughout.- Yes, that will go.
0:10:36 > 0:10:39As it will everywhere else in the house.
0:10:39 > 0:10:41Their budget is £10,000,
0:10:41 > 0:10:46and to do all the work they propose, that might seem a bit tight.
0:10:46 > 0:10:49But Ian's got a small contingency fund just in case
0:10:49 > 0:10:54and Tina's career as a management consultant to the retail industry should also prove handy
0:10:54 > 0:10:59when it comes to bargaining over new kitchen units and a bathroom suite.
0:10:59 > 0:11:01So, what kind of timescale?
0:11:01 > 0:11:03If you are asking Tina about eight weeks,
0:11:03 > 0:11:07I reckon more like 12 is a realistic time frame
0:11:07 > 0:11:11and then it depends what else we uncover
0:11:11 > 0:11:14as to whether that would need to be extended.
0:11:14 > 0:11:20But if we could have it let or ready for letting after three months...
0:11:20 > 0:11:24- Yes, three to four months, it should be rented out.- Then we'll be happy.
0:11:24 > 0:11:26Great. Congratulations to you.
0:11:26 > 0:11:30- Thank you very much.- We look forward to seeing how you get on.- Thank you.
0:11:31 > 0:11:33Well, I have to say, I'm really excited
0:11:33 > 0:11:36to see how Tina and Ian get on with this place.
0:11:36 > 0:11:38I think they're really going to transform it.
0:11:38 > 0:11:42The big question is, will it take eight weeks, 12 weeks or longer?
0:11:42 > 0:11:44You can find out later in the show.
0:11:50 > 0:11:54Today, I'm taking a trip to a peaceful little enclave
0:11:54 > 0:11:57amidst the hustle and bustle of southwest London.
0:11:58 > 0:12:03Wandsworth was, for hundreds of years, a busy industrial area
0:12:03 > 0:12:06and this road would have been your everyday high street,
0:12:06 > 0:12:08providing for the working-class locals.
0:12:08 > 0:12:12Today, this part of SW18, known as The Tonsleys,
0:12:12 > 0:12:16is stacked with countless cafes, delis and beautiful boutiques
0:12:16 > 0:12:18and it's something of a hidden gem,
0:12:18 > 0:12:21a perfectly-preserved Victorian village
0:12:21 > 0:12:23nestled inside the bustling city.
0:12:23 > 0:12:25How wonderful!
0:12:25 > 0:12:27And, as you can imagine, highly desirable.
0:12:27 > 0:12:33# You're so desirable
0:12:33 > 0:12:35# I can't resist you... #
0:12:35 > 0:12:39Properties in this quiet corner command a high price.
0:12:39 > 0:12:45A modest Victorian terrace here can expect to sell for over £600,000.
0:12:46 > 0:12:47On this stunning street,
0:12:47 > 0:12:51it's hard to imagine that in ten minutes you can be in Waterloo
0:12:51 > 0:12:55and trendy Clapham is literally just around the corner.
0:12:55 > 0:12:59Here, you're cocooned in a more traditional world for the families
0:12:59 > 0:13:02and those looking to hide from the city at the end of the day.
0:13:02 > 0:13:05There are only around 600 houses in The Tonsleys area
0:13:05 > 0:13:08and, as with anything that's rare and in-demand,
0:13:08 > 0:13:10they all come with hefty price tags.
0:13:10 > 0:13:13Now, the property I'm here to see, well, it's here,
0:13:13 > 0:13:15it's currently laid out as two flats
0:13:15 > 0:13:19and it had a guide price of £395,000.
0:13:21 > 0:13:25What was once a working-class Victorian terrace is now in high demand
0:13:25 > 0:13:31from the professional couples and families who populate this area.
0:13:31 > 0:13:35Time to check out the first of two self-contained flats, starting with the ground floor.
0:13:35 > 0:13:40You know, I'm not really convinced that these workers' cottages
0:13:40 > 0:13:42should be split up.
0:13:42 > 0:13:45The proportions aren't there. And they're not big enough,
0:13:45 > 0:13:48although you have got quite a nice-size lounge, saying that.
0:13:48 > 0:13:53A bedroom here. But you can see, it's narrow, you've got small little cupboards,
0:13:53 > 0:13:57not enough room in there for a downstairs toilet under the stairs.
0:13:57 > 0:13:59Rather strangely, at the back,
0:13:59 > 0:14:02you've got a bathroom, sort of shoved in there,
0:14:02 > 0:14:05a weird sort of partition wall with some windows
0:14:05 > 0:14:09and the smallest kitchen I think I've ever seen.
0:14:09 > 0:14:11Look at this, look, I can touch both walls.
0:14:11 > 0:14:15You know, this property looks really nice from the outside,
0:14:15 > 0:14:17I'm just not loving it on the inside.
0:14:17 > 0:14:23# Bring back that lovin' feelin' Now it's gone
0:14:23 > 0:14:25# Gone, gone... #
0:14:25 > 0:14:30The tatty toilet and the titchy kitchen are far from ideal.
0:14:30 > 0:14:33This property doesn't need TLC,
0:14:33 > 0:14:36it needs some tough love to bring back that loving feeling.
0:14:38 > 0:14:41The ground-floor flat does have access to this overgrown garden,
0:14:41 > 0:14:46where there's potential to extend out into the side return.
0:14:46 > 0:14:50Let's take a look at the upstairs apartment.
0:14:53 > 0:14:57So this is flat number two. Now, it feels a little bit bigger up here.
0:14:57 > 0:15:00You've got a bathroom there, which by the way, is massive.
0:15:00 > 0:15:03a little kitchen area here
0:15:03 > 0:15:06and this rather large room to the front of the property.
0:15:06 > 0:15:10Now, would you call this the bedroom or the lounge?
0:15:10 > 0:15:14All you have this room here, an old gas fire there,
0:15:14 > 0:15:17some beautiful original sash windows which I love.
0:15:17 > 0:15:19You know what, I'm just thinking,
0:15:19 > 0:15:24is it worth spending the money trying to make these two flats work?
0:15:24 > 0:15:27I don't think so.
0:15:27 > 0:15:30In my opinion, this has got to be one house.
0:15:30 > 0:15:34It will then fit in with the rest of the street and it will be fantastic.
0:15:34 > 0:15:39# When 2 become 1... #
0:15:39 > 0:15:44Normally, I would say two properties are better than one, but in this case, this conversion
0:15:44 > 0:15:48is crying out to be returned to the house it was originally.
0:15:48 > 0:15:51And that is also what the local property market really wants.
0:15:54 > 0:15:58Families in London are often desperate for space,
0:15:58 > 0:16:01to move out of flats into a home with their own front door,
0:16:01 > 0:16:06their own patch of garden and into an area they feel safe and secure.
0:16:06 > 0:16:09But many are also desperate to avoid the suburbs,
0:16:09 > 0:16:13with long commuting times, and don't want to leave the city at all.
0:16:13 > 0:16:16Now, this property offers a very real solution to that problem
0:16:16 > 0:16:18and, subject to planning,
0:16:18 > 0:16:21there's also potential to go up into the loft,
0:16:21 > 0:16:23giving you that third bedroom,
0:16:23 > 0:16:26making the house even more family-friendly.
0:16:26 > 0:16:28A City worker may well feel that, by buying around here,
0:16:28 > 0:16:31there's that winning combination
0:16:31 > 0:16:35of space for the kids without sacrificing the culture.
0:16:35 > 0:16:36It comes at a price,
0:16:36 > 0:16:40but that's something many will be prepared to pay to have it all.
0:16:43 > 0:16:47Let's ask a local estate agent for her opinion
0:16:47 > 0:16:52on this place, which had a guide price of £395,000.
0:16:54 > 0:16:58First impression is, it needs to be turned back into a house.
0:16:58 > 0:17:01The people that live round here are mainly families.
0:17:01 > 0:17:03There aren't many flats, mostly houses.
0:17:03 > 0:17:05People will buy them and do them up to their own spec
0:17:05 > 0:17:07or possibly put the loft on too.
0:17:07 > 0:17:12Many properties on this street have attic conversions,
0:17:12 > 0:17:14giving them a third bedroom.
0:17:14 > 0:17:19But what could this one achieve if restored to a two-bedroomed house?
0:17:19 > 0:17:21Renovated as a two-bedroomed house,
0:17:21 > 0:17:24you would get between £625,000 and £650,000,
0:17:24 > 0:17:27and if it was renovated as a three-bedroomed house,
0:17:27 > 0:17:30you would get up to £675,000 for it.
0:17:32 > 0:17:35And rental value?
0:17:35 > 0:17:38As a renovated two-bedroomed house, you'd get around £400 a week
0:17:38 > 0:17:41and as a renovated three-bedroomed house,
0:17:41 > 0:17:42about £500 per week.
0:17:42 > 0:17:47That translates to between £1,600 and £2,000 a month.
0:17:47 > 0:17:51So, it looks like this property has the potential
0:17:51 > 0:17:55to reap rewards on either resale or rental markets.
0:17:59 > 0:18:01This is a very special part of town,
0:18:01 > 0:18:05which requires a significant income to afford.
0:18:05 > 0:18:06But I think with this lot,
0:18:06 > 0:18:09you've come across that extra-special commodity,
0:18:09 > 0:18:11the must-have house.
0:18:11 > 0:18:13This would make somebody a wonderful home
0:18:13 > 0:18:16or potentially a wonderful profit.
0:18:16 > 0:18:20Let's see who bought this at the auction.
0:18:21 > 0:18:24450? 450 anywhere?
0:18:24 > 0:18:27I think it's worth 450 all day long.
0:18:27 > 0:18:33I don't know, 370. Won't go below 370. 370 in the aisle. 375?
0:18:33 > 0:18:36Sorry, 375. 380.
0:18:36 > 0:18:39385.
0:18:39 > 0:18:40390.
0:18:40 > 0:18:42395. 400.
0:18:43 > 0:18:44405. 410.
0:18:44 > 0:18:48415. 420.
0:18:48 > 0:18:51425.
0:18:51 > 0:18:53430 in the aisle. 435.
0:18:53 > 0:18:55440.
0:18:55 > 0:18:57445.
0:18:57 > 0:18:59450. 451.
0:19:00 > 0:19:02452.
0:19:02 > 0:19:06453. 454.
0:19:06 > 0:19:08455.
0:19:08 > 0:19:11456. 457.
0:19:11 > 0:19:16456 with you. 457. Anyone else?
0:19:16 > 0:19:21First time, 457. New spot. 458.
0:19:21 > 0:19:23459.
0:19:23 > 0:19:26460.
0:19:26 > 0:19:27460, sir? 460, yes.
0:19:27 > 0:19:30Down here, 460.
0:19:30 > 0:19:33461. 462?
0:19:36 > 0:19:41461. First... 462 right at the back.
0:19:41 > 0:19:44463. 464. 465.
0:19:44 > 0:19:47466. 467.
0:19:47 > 0:19:49468.
0:19:49 > 0:19:53469. 470.
0:19:53 > 0:19:55Yes?
0:19:55 > 0:19:57471?
0:19:57 > 0:19:59470. Anyone else?
0:19:59 > 0:20:04First time, second time, third and last time, if you're all done...
0:20:04 > 0:20:08And the cool customer at the back with his bid of £470,000 -
0:20:08 > 0:20:13£75,000 over the guide price - was Sean.
0:20:13 > 0:20:17I met his friend and business partner Richard at the house.
0:20:17 > 0:20:24Both are from South Africa, but now live in London where they develop properties.
0:20:24 > 0:20:31Richard's background is in accountancy. So, will he be able to make the figures here stack up?
0:20:31 > 0:20:34Richard, congratulations. It wasn't you that was at the auction, was it?
0:20:34 > 0:20:38No, it wasn't, it was my partner, Sean, who I've worked with now
0:20:38 > 0:20:41for the last five years, developing property in London.
0:20:41 > 0:20:45Were you happy with the price because you did go over the guide price?
0:20:45 > 0:20:50We did, but I just believe in the area and the potential of the place.
0:20:50 > 0:20:53We've done a lot of refurbishments ourselves with our team
0:20:53 > 0:20:57and I think it's a place we'll be able to sort out really well.
0:20:57 > 0:20:59Are you going to keep this as two flats?
0:20:59 > 0:21:02No, we are going to convert it into a house.
0:21:02 > 0:21:04I just feel that as two flats, it doesn't make sense.
0:21:04 > 0:21:06I think the potential of selling it
0:21:06 > 0:21:11to an end user as a full house will definitely get us the best returns.
0:21:11 > 0:21:14I am so pleased you've said that, it just doesn't work as two flats.
0:21:14 > 0:21:18It feels like just the upstairs and the downstairs.
0:21:18 > 0:21:21The flat at the moment is very poky, so having two flats as it is now,
0:21:21 > 0:21:25it's got the potential to be a really nice home at the end of the process.
0:21:25 > 0:21:31I'm delighted to hear that Richard and I are of one mind when it comes to these two flats.
0:21:33 > 0:21:36Richard and Sean are childhood friends.
0:21:36 > 0:21:39After meeting up again in London a few years ago,
0:21:39 > 0:21:44they decided to join forces in the property business
0:21:44 > 0:21:48and, together, they've developed eight properties so far.
0:21:48 > 0:21:51- Tell me a bit about yourself. - I'm originally from South Africa
0:21:51 > 0:21:54and I've been here in London three years.
0:21:54 > 0:22:00I've joined together with Sean, my business partner, who's been here for 11 years now.
0:22:00 > 0:22:04- Why do you think you and Sean make a good business couple? - He's the entrepreneur
0:22:04 > 0:22:10and I think that, while we both debate and analyse whatever we are doing, I'm the more controlled one
0:22:10 > 0:22:14and he'll openly admit that he's the one who goes out with ideas
0:22:14 > 0:22:18and generates a lot of what we do. But it's a good team.
0:22:18 > 0:22:22Richard and Sean have applied for planning permission to return this property to a house,
0:22:22 > 0:22:27build an extension in the back garden and convert the attic space.
0:22:27 > 0:22:31They hope to achieve all this in just three months.
0:22:31 > 0:22:34They also know they need a high-spec finish inside
0:22:34 > 0:22:38to generate a high sell-on price.
0:22:38 > 0:22:41What sort of interiors are you going to be showing
0:22:41 > 0:22:45and demonstrating inside? How is it going to look and feel?
0:22:45 > 0:22:48It's all really about the finishes in the end.
0:22:48 > 0:22:50We'll spend X amount doing the structural stuff,
0:22:50 > 0:22:54but we want to put a lot of our budget into getting nice finishes
0:22:54 > 0:22:57to sell it to the high-end user, the professional couple,
0:22:57 > 0:23:02with a nice big bedroom with the en-suite bathroom and put a lot of effort into the final finishes.
0:23:02 > 0:23:06- I really think it has to scream luxury as well.- I think so.
0:23:06 > 0:23:12So, straight from the accountant's mouth, what is the budget for the work you need to do here?
0:23:12 > 0:23:15With the purchase price of £470,000,
0:23:15 > 0:23:18I would like to see it coming in under £105,000 -
0:23:18 > 0:23:20all the refurbishment work.
0:23:20 > 0:23:24Are you worried you may have paid too much on auction day?
0:23:24 > 0:23:27No. I think we can get a good asking price with good finishes here.
0:23:27 > 0:23:30- So, are you having sleepless nights about anything?- I was.
0:23:30 > 0:23:34We had a property that was causing me to wake up during the night,
0:23:34 > 0:23:39but at the moment, things have been going well, we managed to sell it.
0:23:39 > 0:23:42At the moment, this one is a beauty, there is no waking up to be done?
0:23:42 > 0:23:46- I'm very confident on this one. - Good luck with this.
0:23:46 > 0:23:52- It's been great meeting you, Richard, and I hope this goes really well. Thank you.- Thank you.
0:23:52 > 0:23:56Richard and Sean have got a corker of a project here
0:23:56 > 0:23:59and this could be one heck of a transformation.
0:23:59 > 0:24:02But only if they get that planning permission.
0:24:02 > 0:24:07Otherwise, accountant Richard will be counting more sheep than profit.
0:24:07 > 0:24:10You can join me later in the programme to find out how it goes.
0:24:11 > 0:24:16Coming up, I visit this terrace in Leeds where I'm intrigued
0:24:16 > 0:24:20to find out what's going on behind...the green door. Hm.
0:24:23 > 0:24:25In London, how is Richard getting along with his renovation?
0:24:27 > 0:24:31I think at the end of the day, we are very happy with where we are.
0:24:32 > 0:24:38First, has this renovation proved a painful process for Ian and Tina?
0:24:38 > 0:24:41It's like childbirth - the pain's forgotten the next day.
0:24:44 > 0:24:46Back to Devon now and the village of Roborough,
0:24:46 > 0:24:48five miles from Plymouth.
0:24:48 > 0:24:53That's where husband and wife Ian and Tina bought this run-down farm cottage for £128,000.
0:24:53 > 0:25:00'They aim to restore the tired interior and give it back some of its original character.
0:25:00 > 0:25:05'They'll add it to their small portfolio of rental properties.'
0:25:05 > 0:25:06So what kind of time scale?
0:25:06 > 0:25:09Well, if you are asking Tina, it will be about eight weeks.
0:25:09 > 0:25:12I reckon probably more like 12.
0:25:12 > 0:25:17And then it depends what else we uncover as to whether that would need to be extended.
0:25:17 > 0:25:21Tina and Ian tend to renovate a property a year
0:25:21 > 0:25:25and this year's model has got lots of potential.
0:25:25 > 0:25:28But its rundown looks will need quite a lot of work
0:25:28 > 0:25:31to make it attractive to the rental market.
0:25:31 > 0:25:36We returned four months later to see if Ian and Tina have made this eye-catching.
0:25:36 > 0:25:38The outside has had a fresh lick of paint.
0:25:38 > 0:25:41But what's the inside got to offer?
0:25:46 > 0:25:49Well, quite a lot. The dated living room has been opened up
0:25:49 > 0:25:54to be replaced with a beautiful, rustic reception area.
0:25:54 > 0:25:56The stairs have been rotated at 180 degrees
0:25:56 > 0:25:58and the living room wall removed,
0:25:58 > 0:26:03bringing space and light to what was formerly a dark, dreary entrance.
0:26:03 > 0:26:10The living room has also been renovated and made fresh and welcoming.
0:26:10 > 0:26:15The kitchen is now an impressive space with tiled floors
0:26:15 > 0:26:17and stylish new units installed.
0:26:17 > 0:26:22At the far end, a contemporary bathroom suite has been installed.
0:26:22 > 0:26:27The whole ground floor has undergone radical renovation.
0:26:27 > 0:26:30Tina made some fascinating discoveries about the house,
0:26:30 > 0:26:35including its previous life as a village Post Office.
0:26:35 > 0:26:39We found some amazing things in the lounge.
0:26:39 > 0:26:41The first thing is the slate floor
0:26:41 > 0:26:46which we unearthed fairly quickly on in the project.
0:26:46 > 0:26:48It was full of mud. So we found the slate floor.
0:26:48 > 0:26:51We were also told that because this was a Post Office,
0:26:51 > 0:26:57that would absolutely support why we've got so much wear and tear.
0:26:57 > 0:26:59We've got some really big dips in the floor
0:26:59 > 0:27:04where obviously people came in over the years and bought their wares.
0:27:04 > 0:27:09We also found that we could restore these shutters around the window
0:27:09 > 0:27:13which were already here, but they were rotten and not in good shape.
0:27:13 > 0:27:17So we've done some work there and now it's a really nice window seat.
0:27:17 > 0:27:21Then the final surprise was this gorgeous inglenook
0:27:21 > 0:27:24which the guys just kept removing and removing bricks and plaster
0:27:24 > 0:27:29and discovered this great fire which we love. It's just worked well
0:27:29 > 0:27:34to put the wood burner in there so that we've got a great cosy lounge.
0:27:34 > 0:27:38Ian and Tina have put their own "stamp" on this former Post Office
0:27:38 > 0:27:43and have made a really "first-class" job of the layout!
0:27:44 > 0:27:48And, let's not forget upstairs where, needless to say,
0:27:48 > 0:27:51the bedrooms have undergone a change as well.
0:27:51 > 0:27:55The landing here is perhaps one of the biggest changes.
0:27:55 > 0:28:00Because we've turned the stairs around, we've been able to create the landing at the front of the house
0:28:00 > 0:28:04and make use of this window which was previously in one of the bedrooms just stuck in the corner.
0:28:04 > 0:28:10That's allowed a lot of natural light to come flooding down through the stairs and down into the kitchen,
0:28:10 > 0:28:13bringing light from the front to the back of the house.
0:28:13 > 0:28:19We've also managed to keep the original oak beams and lintels across the windows.
0:28:19 > 0:28:23By keeping those exposed,
0:28:23 > 0:28:26it's brought a real old feel back to the property.
0:28:26 > 0:28:32We've used the soft corners to keep that feel going throughout also.
0:28:32 > 0:28:35On part of our journey of discovery,
0:28:35 > 0:28:37we found this little fireplace here,
0:28:37 > 0:28:41which is quite a contradiction to the styling of the rest of the house,
0:28:41 > 0:28:43being quite Art Deco in appearance,
0:28:43 > 0:28:46probably dates back to the '20s or '30s, something like that.
0:28:46 > 0:28:49So we've decided to keep that, as well,
0:28:49 > 0:28:52a little feature and part of history of the property.
0:28:52 > 0:28:56We've also managed to include an en-suite toilet
0:28:56 > 0:29:00and washing facilities as well so that those upstairs have that
0:29:00 > 0:29:03without having to go downstairs to the bathroom.
0:29:03 > 0:29:07Across the landing, the other bedroom has no such luxury
0:29:07 > 0:29:11and even had some space removed from it to fit in the toilet.
0:29:11 > 0:29:16But even so, Ian and Tina have made this top floor work to its maximum potential.
0:29:16 > 0:29:20But there were many obstacles to getting to this stage,
0:29:20 > 0:29:24with one of the coldest winters on record being the main culprit.
0:29:24 > 0:29:27We've actually drawn a new learning through this project,
0:29:27 > 0:29:30which is to try and avoid buying right in the middle of the winter.
0:29:30 > 0:29:32We tend to buy in the spring
0:29:32 > 0:29:39and working through to a tight timeline with the weather conditions and the cold and the wet,
0:29:39 > 0:29:42you know, is certainly something that we've learned from.
0:29:42 > 0:29:48The severe weather pushed the time scale up to 18 weeks, but even so,
0:29:48 > 0:29:52with Ian doing the bulk of the work himself, it's an amazing renovation.
0:29:52 > 0:29:55Tina dealt with the decor and the style of the house,
0:29:55 > 0:29:59but how did the couple feel during the renovation?
0:29:59 > 0:30:03Fundamentally, it brings with it its stresses and strains
0:30:03 > 0:30:06and I tend to shoulder most of those
0:30:06 > 0:30:11and let them overflow on to those that are nearest and dearest
0:30:11 > 0:30:13as we go through the project.
0:30:13 > 0:30:17But I like to think it's a little bit like childbirth and the pain's forgotten the next day.
0:30:17 > 0:30:21# Wonderful baby Living on love... #
0:30:21 > 0:30:24Well, I'd say they've got themselves a beautiful, bouncing home here.
0:30:24 > 0:30:28But did this long delivery affect their budget?
0:30:28 > 0:30:32We think we're round about the 13,500 mark
0:30:32 > 0:30:36which is a little over the original budget of 10,000,
0:30:36 > 0:30:41which I believe was almost optimistic anyway, hence the contingency.
0:30:41 > 0:30:43Even so, we're a little beyond that,
0:30:43 > 0:30:47but that's taking into account the level of work that needed to be done.
0:30:51 > 0:30:53Well, Tina and Ian may have saved the house,
0:30:53 > 0:30:56but will it prove a good investment?
0:30:56 > 0:31:00Bearing in mind that outlay of £141,500,
0:31:00 > 0:31:04we asked two local property experts what they thought of their work.
0:31:07 > 0:31:10My first impressions of the cottage are, nice and light, bright,
0:31:10 > 0:31:12airy, good-sized rooms.
0:31:12 > 0:31:15It's bigger on the inside than it looks from the outside.
0:31:16 > 0:31:20Yes, very impressed walking in. The whole place has changed.
0:31:20 > 0:31:22The owner's done a good job, really good.
0:31:22 > 0:31:24The layout is very good, works very well.
0:31:24 > 0:31:27As you come in, you're directly into the lounge,
0:31:27 > 0:31:29and off that, you've got another reception room
0:31:29 > 0:31:32and steps down to a nice modern kitchen and bathroom.
0:31:34 > 0:31:36As Tina and Ian aim to rent the house out,
0:31:36 > 0:31:39what sort of income could it achieve on the rental market?
0:31:41 > 0:31:43The rental value of the cottage
0:31:43 > 0:31:48would be about £675 to £700 per calendar month.
0:31:48 > 0:31:53The rental value for this property would be in the region of £750 per calendar month.
0:31:53 > 0:31:55That works very well for us.
0:31:55 > 0:32:01Our plan is to rent the property and anything in excess of £650,
0:32:01 > 0:32:03again, we're very happy with that.
0:32:03 > 0:32:06So all in all, we're really pleased with those figures.
0:32:06 > 0:32:10But if Tina and Ian decide to off-load this particular baby,
0:32:10 > 0:32:16the experts think it could have a resale value of between £165,000 and £175,000,
0:32:16 > 0:32:23giving the couple a possible profit of between 23,000 and 33,500 pre-tax profit.
0:32:23 > 0:32:26But they're in this for the long-term
0:32:26 > 0:32:28and are proud of this addition to their portfolio.
0:32:28 > 0:32:31We're delighted with the house. We love it.
0:32:31 > 0:32:36And we'll continue to keep it maintained to, hopefully, a high standard,
0:32:36 > 0:32:39working with whatever tenants go in.
0:32:39 > 0:32:42And we'll continue to look for period properties as well,
0:32:42 > 0:32:45because that's what we like. But we're delighted with it.
0:32:49 > 0:32:52I'm in West Yorkshire now, in Leeds,
0:32:52 > 0:32:55one of the fastest-growing cities in the UK.
0:32:55 > 0:32:59It has the second-largest number of IT employees in the country,
0:32:59 > 0:33:03and is one of the most important financial services centres outside London.
0:33:03 > 0:33:06So if you're looking to invest in the property market,
0:33:06 > 0:33:08this may be the place to do it.
0:33:10 > 0:33:14Well, I'm about two miles outside Leeds city centre here
0:33:14 > 0:33:17to see what's known as a back-to-back property.
0:33:17 > 0:33:22It's known as that because literally it is sharing a rear wall with another house.
0:33:22 > 0:33:26It was a way in Victorian times of getting high-density housing together.
0:33:26 > 0:33:29Guide price was 50,000 quid, three-bedroomed,
0:33:29 > 0:33:32erm...behind this hedge thing.
0:33:32 > 0:33:36A couple of minutes with a hedge trimmer will sort that out.
0:33:36 > 0:33:40This is property itself, three storeys with a cellar.
0:33:40 > 0:33:41Let's take a look inside.
0:33:43 > 0:33:49Back in 1918, 70% of the population of Leeds lived in back-to-back houses like this.
0:33:49 > 0:33:54And it's estimated there are still around 18,000 left in the city.
0:33:54 > 0:33:56Well, nice that there's that little entrance porch,
0:33:56 > 0:33:58and then into your lounge.
0:33:58 > 0:34:02Straight away, I'm seeing it is fairly tired
0:34:02 > 0:34:05and in need of a bit of tender loving care, for sure.
0:34:05 > 0:34:08Possibly a bit of damp coming through the ceiling there.
0:34:08 > 0:34:10Need to check that out.
0:34:10 > 0:34:13Looks like there is a few original features left, which is nice to see.
0:34:13 > 0:34:16Through there, a kitchen.
0:34:16 > 0:34:19What I'm wondering is, if there's a way to take this wall out,
0:34:19 > 0:34:24and making it maybe much bigger, kind of like a kitchen-living area.
0:34:24 > 0:34:28Something to look at. But all in all, not a bad start.
0:34:28 > 0:34:31But one thing already counting against this place is the gas fire.
0:34:31 > 0:34:35It's the only one in the house, so central heating's required here.
0:34:36 > 0:34:41So up on to the first floor and behind the door... Oh!
0:34:41 > 0:34:43A bathroom and loo.
0:34:43 > 0:34:45Doesn't look to be in too bad... No, I'm lying.
0:34:45 > 0:34:49Er, needs complete refurbishment!
0:34:49 > 0:34:52Then through to your first bedroom. A good size, I have to say.
0:34:52 > 0:34:56So that's that. And then, I wonder...
0:34:56 > 0:34:58what's behind here.
0:35:00 > 0:35:02The green door. Hmm.
0:35:02 > 0:35:05# So I could find out what's behind the green door.... #
0:35:06 > 0:35:09And behind that green door are stairs,
0:35:09 > 0:35:12leading up to the attic conversion.
0:35:12 > 0:35:14Well, no surprises, I guess. Two bedrooms up here.
0:35:14 > 0:35:18But before I get to them, something which I wasn't expecting.
0:35:18 > 0:35:19Look at the size of that crack.
0:35:21 > 0:35:24It's all over this little part of the building.
0:35:24 > 0:35:27It goes all the way round there and there. That's not good.
0:35:27 > 0:35:32I'd want to have that checked out by a structural engineer before I went very much further at all.
0:35:33 > 0:35:35Doesn't get better in here, I'm afraid
0:35:35 > 0:35:38One of the bedrooms up here, and as you can see,
0:35:38 > 0:35:41looks like there's been some water ingress from the roof.
0:35:41 > 0:35:44That would indicate that the roof itself needs looking at as well.
0:35:44 > 0:35:48So all in all, a few bits and pieces to do here.
0:35:50 > 0:35:53Also, the third bedroom is tiny,
0:35:53 > 0:35:55barely big enough to squeeze in a single bed.
0:35:55 > 0:35:58It might be OK as a nursery,
0:35:58 > 0:36:01but I think you'd struggle to rent it out as a bedroom.
0:36:01 > 0:36:03There is some good news in that cellar,
0:36:03 > 0:36:08which has separate access from the front and would be handy for storage.
0:36:08 > 0:36:11But in general, it's a property with a few problems -
0:36:11 > 0:36:13cracks, damp and no central heating.
0:36:13 > 0:36:18Of course, that's reflected in that tempting £50,000 guide price.
0:36:19 > 0:36:23We asked a local estate agent for a second opinion
0:36:23 > 0:36:25on this Leeds back-to-back.
0:36:27 > 0:36:30'The property's a great blank canvas.'
0:36:30 > 0:36:33Double glazing's in, so that's a cost which doesn't have to be looked at.
0:36:33 > 0:36:37New kitchen, bathroom, central heating and then decor.
0:36:37 > 0:36:38Job's a good one.
0:36:38 > 0:36:44So if bought as an investment, would this suit the rental market or be better if done up to sell on?
0:36:44 > 0:36:48'In my opinion, it's better to buy these properties and let them out at the moment.
0:36:48 > 0:36:52'The current market conditions say that prices are not going to go up that much,
0:36:52 > 0:36:55'even if you do do the work to the properties at the moment.'
0:36:55 > 0:36:59So it's better to get tenants in and get some money back on the property.
0:36:59 > 0:37:02What rent could it earn once renovated?
0:37:02 > 0:37:06'Currently in the rentals market, if this was going to go up for let...'
0:37:06 > 0:37:10I would be putting a valuation of £475 to £550 per calendar month.
0:37:10 > 0:37:14What could it get if sold on?
0:37:14 > 0:37:18Once it's been renovated, I would put a valuation of £70,000 to £75,000.
0:37:23 > 0:37:25So, a few things to sort out.
0:37:25 > 0:37:28The roof, for sure, and those cracks on the top floor.
0:37:28 > 0:37:33But principally, a solid house in a good area for rental.
0:37:33 > 0:37:35So let's see who fancied it when it went under the hammer.
0:37:35 > 0:37:39It was late in the day,
0:37:39 > 0:37:42but let's see who stayed for one of the last auction lots.
0:37:42 > 0:37:47Start me off, please, at the guide. £50,000, 50 if you will?
0:37:47 > 0:37:4945, then, to start things off. 45 I'll take.
0:37:49 > 0:37:52Thanks, at 45, I'll take yours. 46, then?
0:37:52 > 0:37:5646 anywhere else? Are we all finished at £45,000?
0:37:56 > 0:37:58Sorry, 46. I didn't see you, sir.
0:37:58 > 0:38:0047, then?
0:38:00 > 0:38:0247, you will. 48.
0:38:02 > 0:38:0349.
0:38:03 > 0:38:07Half? All right. 48,500. 49, then sir? 49 you will.
0:38:07 > 0:38:08And a half.
0:38:08 > 0:38:12£49,000, then, we have. 49,500 anywhere else?
0:38:12 > 0:38:15Selling, then, for the first time at £49,000.
0:38:15 > 0:38:20Second, third and final time, all finished?
0:38:20 > 0:38:22Thank you, sir.
0:38:22 > 0:38:27That final and successful bid of 49,000 was made by Parminder,
0:38:27 > 0:38:30a local property developer.
0:38:30 > 0:38:33He's bought the house to renovate and then rent out.
0:38:33 > 0:38:37I met him at his new back-to-back to find out more.
0:38:37 > 0:38:40- Parminder, lovely to meet you. - Hello.- Congratulations.
0:38:40 > 0:38:43- Thank you.- Tell me why you wanted to buy this place.
0:38:43 > 0:38:48Well, it was a good investment so I thought I would bid for it.
0:38:48 > 0:38:53- The property I wanted got sold prior, so I just bought this one.- Right.
0:38:53 > 0:38:56So what was it about this one that you liked?
0:38:56 > 0:38:58The price, mainly, actually.
0:38:58 > 0:39:02I think it was a good price, opportunity arised, yeah? So I just bought it.
0:39:02 > 0:39:06- Had you seen it before the auction or not?- I only seen it from outside.
0:39:06 > 0:39:07Right.
0:39:08 > 0:39:12So, for Parminder, this was an impulse purchase
0:39:12 > 0:39:16after the property he was interested in sold prior to the auction.
0:39:16 > 0:39:19And not only had he not viewed it inside before buying,
0:39:19 > 0:39:23he'd also taken another risk.
0:39:23 > 0:39:27Presumably if you bought it last minute, you didn't look at legal packs and things like that?
0:39:27 > 0:39:31- No, but there's nothing really. - But there could have been!
0:39:31 > 0:39:35Could have been, yes, yes. That's the risk I took, obviously.
0:39:35 > 0:39:37Risks are something you're comfortable with?
0:39:37 > 0:39:42Up to reasonable, calculated risks, as you call it, yes.
0:39:42 > 0:39:44You didn't see it inside before you bought it.
0:39:44 > 0:39:48What did you think when you walked through the door?
0:39:48 > 0:39:52It was fine from when I saw the first floor.
0:39:52 > 0:39:55When I saw the crack, I was a bit concerned. I already spoke to surveyor.
0:39:55 > 0:39:59He said it's settlement and there's nothing really serious to worry about.
0:39:59 > 0:40:02That's the wall attached to the other property?
0:40:02 > 0:40:07Yes, it's a shared side, so both properties will be the same,
0:40:07 > 0:40:10and it's just the settlement, as he said.
0:40:10 > 0:40:13Having got that positive news from a surveyor,
0:40:13 > 0:40:16I think Parminder's had a lucky break here.
0:40:16 > 0:40:20When it comes to those cracks, it could've been a lot worse.
0:40:20 > 0:40:23Still, he does have a lot of property experience,
0:40:23 > 0:40:26as he's been developing for ten years now.
0:40:26 > 0:40:29He's been a full-time landlord for the last four years,
0:40:29 > 0:40:32but usually buys in areas of Leeds popular with students,
0:40:32 > 0:40:36so this is a bit of a departure and a new location for him.
0:40:36 > 0:40:40But he wasn't always a property developer.
0:40:40 > 0:40:43- I used to actually be a shopkeeper. - Oh!
0:40:43 > 0:40:46- Long hours.- Long hours, yeah.
0:40:46 > 0:40:51But I started building property since 1984, when I had a shop.
0:40:51 > 0:40:55So I bought some property and rentals at the same time.
0:40:55 > 0:40:57So I built a portfolio over the years, slowly.
0:40:57 > 0:41:00What's the plan? Talk me through what you'll do.
0:41:00 > 0:41:05I'm going to obviously get the roof done first
0:41:05 > 0:41:07and just start from the top and work down.
0:41:07 > 0:41:11Put a new bathroom, new kitchen, central heating.
0:41:11 > 0:41:15Obviously take the paper off and restart again, you know?
0:41:17 > 0:41:21Parminder will carry out most of the work himself,
0:41:21 > 0:41:22which will keep the costs down.
0:41:24 > 0:41:26What kind of budget have you got to do the work?
0:41:26 > 0:41:31About 7,000 or 8,000, something like that.
0:41:31 > 0:41:33Presumably you've done this before?
0:41:33 > 0:41:36Oh, yes, yes, yes, I do a lot of work myself as well.
0:41:36 > 0:41:37What do you get involved in?
0:41:37 > 0:41:40Mainly plumbing. I'm a gas-safe engineer,
0:41:40 > 0:41:44so I can do the central heating and the plumbing and everything.
0:41:44 > 0:41:47- That's convenient, isn't it? - Yeah, keep the costs down.
0:41:47 > 0:41:48What kind of timescale for sorting it?
0:41:48 > 0:41:52Two to three months, about three months, yes.
0:41:52 > 0:41:53Then back on the rental market.
0:41:53 > 0:41:58- Yeah, should be.- Congratulations. Good luck with it.- Thank you.
0:41:58 > 0:42:00- We look forward to seeing how you get on. - Thank you very much.
0:42:01 > 0:42:05Well, buying a property without seeing it inside
0:42:05 > 0:42:09or reading the legal pack is a seriously risky strategy
0:42:09 > 0:42:11and one I do not advise.
0:42:11 > 0:42:14However, it seems that Parminder has got away with it on this occasion,
0:42:14 > 0:42:19although I think he might have a few more structural issues than he's expecting.
0:42:19 > 0:42:22Find out how he gets on later in the show.
0:42:26 > 0:42:29Well, time has simply flown by.
0:42:29 > 0:42:33So, how have our buyers got on? Or has time been an enemy?
0:42:33 > 0:42:36Let's go back and check out what's happened.
0:42:38 > 0:42:43Let's return to The Tonsleys in Wandsworth, Southwest London.
0:42:43 > 0:42:48The traditional terraced houses in this quiet corner are in high demand.
0:42:48 > 0:42:53I viewed this property, which had a guide price of £395,000,
0:42:53 > 0:42:55and had been converted into two pokey flats.
0:43:02 > 0:43:06This area is extremely popular with professional couples
0:43:06 > 0:43:09and families and demand for flats is limited.
0:43:10 > 0:43:13It was purchased at auction by Richard
0:43:13 > 0:43:16and his business partner, Sean, for 470,000.
0:43:18 > 0:43:21I wanted to know if Richard agreed with me
0:43:21 > 0:43:25that this place should be restored to the house it was originally.
0:43:26 > 0:43:29So, Richard, are you going to keep this as two flats?
0:43:29 > 0:43:31No, we're converting it immediately into a house.
0:43:31 > 0:43:34I feel as two flats, it doesn't make sense.
0:43:34 > 0:43:36I'm so pleased you've said that!
0:43:36 > 0:43:38It just doesn't work as two flats, does it?
0:43:38 > 0:43:41It feels like just the upstairs and the downstairs.
0:43:41 > 0:43:43Having two flats as it is now,
0:43:43 > 0:43:46it's got the potential to be a really nice home at the end of the process.
0:43:48 > 0:43:50In order to maximise their potential profit,
0:43:50 > 0:43:53Richard and Sean had applied for planning permission
0:43:53 > 0:43:57to construct a rear extension and build into the attic space.
0:43:59 > 0:44:03Their £105,000 budget ensured they could splash the cash
0:44:03 > 0:44:06to achieve a high-spec, high-style finish.
0:44:11 > 0:44:15Three months have flown by and work is well underway.
0:44:15 > 0:44:18But it would appear far from finished.
0:44:20 > 0:44:24Richard ripped out the interior and stripped it back to the brick
0:44:24 > 0:44:29to create what will be a warm and welcoming family home,
0:44:29 > 0:44:33rather than the dark and dank flats this property was previously.
0:44:33 > 0:44:38To the rear will be an open-plan living and kitchen area.
0:44:38 > 0:44:40Planning permission was granted
0:44:40 > 0:44:44and we can see the extension that will become the kitchen.
0:44:46 > 0:44:50All right, well, this is the downstairs reception area
0:44:50 > 0:44:54and we're going to put a lounge in the front
0:44:54 > 0:44:56and then a television room here in the middle,
0:44:56 > 0:45:01leading through to the kitchen, which is going to lead outside
0:45:01 > 0:45:07through double doors, and then out on to a decked garden out this end.
0:45:07 > 0:45:09Obviously, having the side return
0:45:09 > 0:45:12creates a lot more space that we were requiring to do that.
0:45:12 > 0:45:18Upstairs, like downstairs, has had all the interior walls removed.
0:45:18 > 0:45:23This will allow Richard and Sean to remodel the layout to their specifications
0:45:23 > 0:45:28and create a large master bedroom with walk-in closet and en suite.
0:45:28 > 0:45:31Steel supports have been added to carry the weight of the roof
0:45:31 > 0:45:35on what will be the attic conversion.
0:45:38 > 0:45:41Coming upstairs here, you'll walk into the main bedroom
0:45:41 > 0:45:46and this is where we've come to create a lot of the space in the house
0:45:46 > 0:45:50in moving through a walk-in closet into the main en-suite bathroom.
0:45:50 > 0:45:52Also on the first floor at the far side,
0:45:52 > 0:45:56we'll have a bedroom which could either be a double bedroom or study.
0:45:56 > 0:45:59And then there'll be a staircase here,
0:45:59 > 0:46:04which will go up into the dormer loft and have another bathroom and another double bedroom upstairs.
0:46:06 > 0:46:08Alongside the dramatic change in layout,
0:46:08 > 0:46:11Richard and his business partner, Sean,
0:46:11 > 0:46:14planned an equally impressive interior.
0:46:14 > 0:46:16But their plans were put on hold
0:46:16 > 0:46:19when they got a phone call from a potential purchaser.
0:46:21 > 0:46:24We've sold it halfway through development.
0:46:24 > 0:46:27We had a buyer who found the details of the planning permission
0:46:27 > 0:46:30off the council website and approached us
0:46:30 > 0:46:33and we've decided that it's best to sell on to him immediately.
0:46:34 > 0:46:37So Richard and Sean have agreed to continue work on the house
0:46:37 > 0:46:40until the first fix is completed.
0:46:40 > 0:46:43That means all the building work is done,
0:46:43 > 0:46:47including electric cabling and water and sewage plumbing.
0:46:47 > 0:46:50But no fixtures or fittings have been installed.
0:46:52 > 0:46:57It is sad not to see the building get to its finished product,
0:46:57 > 0:47:00but at the same time, we're really happy to cut ourselves
0:47:00 > 0:47:03clean of all of the admin to get it to that stage.
0:47:03 > 0:47:07So it takes away the nightmare of the end of the refurbishment stage,
0:47:07 > 0:47:11when you're trying to curtail costs.
0:47:11 > 0:47:14I think, at the end of the day, we're very happy with where we are.
0:47:16 > 0:47:19Richard has a contract with his builders
0:47:19 > 0:47:21to complete the first fix for £50,000.
0:47:23 > 0:47:25Add to that their purchase price of 470 grand
0:47:25 > 0:47:31and their total investment here is £520,000.
0:47:35 > 0:47:38We asked two local estate agents for their impressions
0:47:38 > 0:47:41on what Richard and Sean have achieved with this project.
0:47:45 > 0:47:49They've definitely made the best use of the property by extending
0:47:49 > 0:47:55into the loft, the layout is by far the best they could have done.
0:47:55 > 0:47:59The extension adds to the whole overall feeling of space, light
0:47:59 > 0:48:05and creates a really good open-plan ground floor.
0:48:06 > 0:48:08I do think he's made best use of the space.
0:48:08 > 0:48:11It's nice to see somebody who's actually managed to
0:48:11 > 0:48:14increase the value by increasing the square footage,
0:48:14 > 0:48:16rather than just doing a cosmetic make-over.
0:48:18 > 0:48:21The experts are impressed with the new layout of this house.
0:48:21 > 0:48:25Let's hear their sell-on valuations for this property when complete.
0:48:27 > 0:48:29I think the resale value of this property,
0:48:29 > 0:48:33when everything is finished, including kitchens and bathrooms to a good spec,
0:48:33 > 0:48:38would be between £725,000 and £750,000.
0:48:38 > 0:48:40When fully completed,
0:48:40 > 0:48:44I would expect the value to be in the region of £750,000.
0:48:44 > 0:48:50If Richard and Sean had kept their original £105,000 budget,
0:48:50 > 0:48:53those figures would have earned them a pre-tax profit
0:48:53 > 0:48:58of between 150,000 and 175,000.
0:48:58 > 0:49:00That's all ifs and buts, though.
0:49:00 > 0:49:07They actually sold the house in its incomplete state for £665,000,
0:49:07 > 0:49:12earning them a pre-tax profit of 145 grand!
0:49:12 > 0:49:13Not too bad at all.
0:49:13 > 0:49:19So, do they have any regrets about not seeing this project through to completion?
0:49:19 > 0:49:20I believe we made the right decision.
0:49:20 > 0:49:24I feel that there is a slight bit of regret
0:49:24 > 0:49:27about the fact we never took it to its real end value
0:49:27 > 0:49:32and the achievement of having fulfilled what the potential of the property is,
0:49:32 > 0:49:36but at the moment, I'm very happy to take what we've made and walk on to the next one.
0:49:44 > 0:49:47Let's return to the back-to-back terraces of Leeds,
0:49:47 > 0:49:50where I viewed this three-bedroomed house.
0:49:50 > 0:49:53It was purchased at auction for 49,000
0:49:53 > 0:49:55by professional developer Parminder,
0:49:55 > 0:49:59to add to his portfolio of over 20 rental properties.
0:50:04 > 0:50:08However, he had not viewed the interior of the terrace.
0:50:08 > 0:50:12While the mould and mildew failed to dampen his spirits,
0:50:12 > 0:50:16the cracks in the ceiling and the rear walls proved to be quite a shock.
0:50:19 > 0:50:22I was surprised an experienced developer such as Parminder
0:50:22 > 0:50:25would gamble on a property he'd never viewed.
0:50:27 > 0:50:30So you didn't see it inside before you bought it.
0:50:30 > 0:50:32What did you think when you walked through the door?
0:50:32 > 0:50:35It was fine. When I saw the crack, I was a bit concerned.
0:50:35 > 0:50:38But taking risks is something you're quite comfortable with?
0:50:38 > 0:50:40Calculated risks, I should call it, yes.
0:50:40 > 0:50:45So has Parminder's purchase proved to be risky business
0:50:45 > 0:50:48or a risk worth taking?
0:50:49 > 0:50:52Four months later, we've returned to find out,
0:50:52 > 0:50:54and I'm relieved to say, the hedge has been trimmed.
0:50:58 > 0:51:01# Risky business
0:51:01 > 0:51:03# Ah ha, ah ha
0:51:03 > 0:51:05# Some kind of risky business #
0:51:08 > 0:51:11Parminder has carried out the majority of the work himself,
0:51:11 > 0:51:14including fitting a quality kitchen.
0:51:14 > 0:51:18This shows that even though this house is destined for the rental market,
0:51:18 > 0:51:23Parminder doesn't cut corners where it counts.
0:51:23 > 0:51:26Well, we've done a lot of work since you were here.
0:51:26 > 0:51:29Virtually complete renovation, yes.
0:51:29 > 0:51:36Replastered the whole place, new kitchen, skirtings, architraves, you know, so...
0:51:36 > 0:51:38Re-painted the whole place.
0:51:42 > 0:51:45In the sitting room, Parminder has removed the gas fire
0:51:45 > 0:51:48and installed an all-new central heating system.
0:51:49 > 0:51:51Upstairs, the quality workmanship continues.
0:51:53 > 0:51:54The bathroom felt cramped,
0:51:54 > 0:51:58and its black-and-white decoration looked harsh and cold.
0:51:58 > 0:52:02Now, it's cool, calm and collected, just like Parminder.
0:52:03 > 0:52:06There are large floor and wall tiles in neutral tones,
0:52:06 > 0:52:12a modern white suite and contemporary fixtures and fittings.
0:52:12 > 0:52:17It used to be a big cupboard here for the hot-water cylinder.
0:52:17 > 0:52:22We removed that and created a space for a bath,
0:52:22 > 0:52:26moved the bath this way and made a space for a toilet there,
0:52:26 > 0:52:30and obviously fitted the new heating and wall tiles as well.
0:52:30 > 0:52:33Parminder fitted the bathroom suite himself and did the tiling,
0:52:33 > 0:52:35achieving a quality finish.
0:52:35 > 0:52:38He's obviously not afraid of a little hard graft,
0:52:38 > 0:52:42and his qualification as a heating engineer has come in handy too.
0:52:44 > 0:52:48I fitted the kitchen myself, the bathroom, did the tiling.
0:52:48 > 0:52:53The central heating myself. So most of it, apart from plastering.
0:52:53 > 0:52:58The master bedroom, once dizzying in its decor, has been stripped,
0:52:58 > 0:53:00replastered and re-painted in restful tones,
0:53:00 > 0:53:06with contrasting curtains, carpets and a new radiator fitted.
0:53:07 > 0:53:11The attic conversion was the main cause for concern.
0:53:11 > 0:53:16The cracks that once snaked across the walls and ceilings are gone.
0:53:16 > 0:53:19There was a lot of cracks, and there was one big crack.
0:53:19 > 0:53:24We called a surveyor, he examined it, and said there is no subsidence.
0:53:25 > 0:53:30We just repaired it, and that was the end of it, really.
0:53:30 > 0:53:32It was very good after that.
0:53:32 > 0:53:36And, as for the damp-ridden bedrooms, no problem for Parminder.
0:53:36 > 0:53:38He replaced the roof
0:53:38 > 0:53:42and the dormer extension, which was allowing the water to come in.
0:53:44 > 0:53:47We did a new flat roof on the top,
0:53:47 > 0:53:51and obviously there were some other tiles and we sorted that out,
0:53:51 > 0:53:58and everything's good now, everything's fantastic.
0:53:58 > 0:54:00It would seem there's nothing that can faze
0:54:00 > 0:54:05Parminder's positive can-do attitude.
0:54:05 > 0:54:08# No problems, no problems
0:54:08 > 0:54:11# Only solutions... #
0:54:11 > 0:54:14Well, maybe one thing - getting all his tools
0:54:14 > 0:54:17and equipment up that rather steep staircase.
0:54:17 > 0:54:19# Only solutions... #
0:54:19 > 0:54:23My legs are a lot fitter than before, yes!
0:54:26 > 0:54:28It's good, yeah, keeping me fit, yeah.
0:54:28 > 0:54:32Parminder completed the work within his three-month schedule.
0:54:32 > 0:54:35But he spent £2,000 more than his eight-grand budget,
0:54:35 > 0:54:38as he hadn't factored in replacing the dormer roof
0:54:38 > 0:54:41and replastering all the walls.
0:54:41 > 0:54:44However, as he's a registered gas engineer, he was able to
0:54:44 > 0:54:48install the boiler and gas central heating himself, and he has also
0:54:48 > 0:54:51fitted the bathroom and kitchen,
0:54:51 > 0:54:54which certainly helped keep the costs down.
0:54:54 > 0:54:58His total outlay, including purchase price, was 59,000.
0:55:02 > 0:55:05Parminder plans to rent out this property,
0:55:05 > 0:55:08so we asked two local estate agents for their opinion.
0:55:10 > 0:55:16Was Parminder's impulse purchase at the auction worth the risk?
0:55:16 > 0:55:19I think he's done a really, really good job.
0:55:19 > 0:55:21Sale or rental, people coming,
0:55:21 > 0:55:24first impressions would be really good.
0:55:24 > 0:55:27Interest would be high, and I think the pictures will look good
0:55:27 > 0:55:28from a marketing perspective.
0:55:28 > 0:55:31First impressions are absolutely brilliant.
0:55:31 > 0:55:34The owner of the property's done a fantastic job,
0:55:34 > 0:55:36especially the kitchen and bathroom, changed the layout
0:55:36 > 0:55:39of the bathroom, which has opened up some more space,
0:55:39 > 0:55:42and the kitchen, quality of finish is really good.
0:55:42 > 0:55:44The estate agents believe this property
0:55:44 > 0:55:49could make 75 to £80,000 on the resale market,
0:55:49 > 0:55:53giving Parminder a pre-tax profit of between 16 and £21,000,
0:55:53 > 0:55:56but his intention is to add this
0:55:56 > 0:55:58to his growing portfolio of buy-to-let properties.
0:55:58 > 0:56:02So how much could it make if he rented it out?
0:56:02 > 0:56:05I'd suggest to a landlord in today's rental market,
0:56:05 > 0:56:09you'll be putting this on for around £495 to £525
0:56:09 > 0:56:11per calendar month.
0:56:11 > 0:56:15I'd put this on the rental market for £525 per calendar month.
0:56:16 > 0:56:18Those figures would give Parminder
0:56:18 > 0:56:22an impressive rental yield of between 10 and 10.5%,
0:56:22 > 0:56:27so it seems his calculated risk will earn him his reward.
0:56:28 > 0:56:31Is he satisfied with the job well done?
0:56:33 > 0:56:36Yeah, definitely got a job satisfaction.
0:56:36 > 0:56:38You can see where it started and the finished product.
0:56:38 > 0:56:43There was no real major problems, and it's been really good, actually,
0:56:43 > 0:56:47so I'm satisfied, definitely. It's very good.
0:56:50 > 0:56:53We hope you've enjoyed seeing today's property portfolio.
0:56:53 > 0:56:55Join us next time for more Homes Under The Hammer.
0:56:55 > 0:56:57- See you then.- Goodbye.- Goodbye.
0:57:04 > 0:57:06Subtitles by Red Bee Media Ltd
0:57:06 > 0:57:07E-mail subtitling@bbc.co.uk