0:00:02 > 0:00:04People buy properties for all sorts of reasons, to live in
0:00:04 > 0:00:07- or just to do up and sell on. - Whatever the reason,
0:00:07 > 0:00:11the main concern is value for money. So how do you do that?
0:00:11 > 0:00:14One way would be to buy your next house under the hammer.
0:00:40 > 0:00:42You need to do your homework if you buy at auction.
0:00:42 > 0:00:45But once that's done, you can get yourself a real bargain.
0:00:45 > 0:00:49Here's a look at today's potential money-spinners that sold under the hammer.
0:00:49 > 0:00:54'This London property dates back to 1872
0:00:54 > 0:00:56'and is full of original features.'
0:00:56 > 0:01:00With some money and some imagination, it could look fantastic.
0:01:00 > 0:01:05'There are some rather odd surprises when I visit this semi in Derby.'
0:01:05 > 0:01:10Fairly standard layout so far. Stairs up to the bedrooms. Down the corridor, what is that?
0:01:10 > 0:01:16'And in Gillingham, Kent, you'd have problems moving large furniture about in this frustrating property.'
0:01:16 > 0:01:21Look how narrow this place is. It's just not wide enough!
0:01:21 > 0:01:25'All of these properties went to auction
0:01:25 > 0:01:29'and we'll find out who bought them and what they paid for them when they went under the hammer.'
0:01:33 > 0:01:38'For the first property that went to auction, I've come to Forest Gate in East London,
0:01:38 > 0:01:41'a vibrant and bustling part of the city.
0:01:41 > 0:01:47'With the 2012 Olympic stadium only minutes away, this part of the capital is tipped for big things.'
0:01:47 > 0:01:52I'm here to see a substantial house with a modest guide price.
0:01:52 > 0:01:56The average property price on this road is £360,000
0:01:56 > 0:02:00and the guide was set at just £235,000.
0:02:00 > 0:02:04Now, the house has been in the same ownership since 1872,
0:02:04 > 0:02:06so I'm hoping it's been refurbished since then.
0:02:06 > 0:02:09Let's go inside and see what it's like.
0:02:09 > 0:02:15'It's clearly benefitted from double glazing at some point, and it looks as though there's a new roof.
0:02:15 > 0:02:21'Not sure when it was last painted, but surely it's had a coat since 1872! Or has it?'
0:02:25 > 0:02:28Oh, now, it is a little disappointing on the inside,
0:02:28 > 0:02:32but if you can look beyond all the peach wallpaper and the yellow trimmings,
0:02:32 > 0:02:36you've actually got the bones of a really nice house here.
0:02:36 > 0:02:39You've got lovely high ceilings, beautiful cornicing
0:02:39 > 0:02:43a nice fireplace, you've got a ceiling rose.
0:02:43 > 0:02:48And I'm not sure whether I do like the double doors leading through to the next room
0:02:48 > 0:02:52or I would prefer a nice, big, square arch.
0:02:52 > 0:02:55Let's see what's on the other side.
0:02:56 > 0:02:59Ooh, it's looking good. Now, look at this!
0:02:59 > 0:03:02Now, this is when I get quite excited.
0:03:02 > 0:03:07If you look at both of these rooms as one large room, it's fantastic.
0:03:07 > 0:03:13You've got so much light, you've got windows at both ends and another beautiful fireplace.
0:03:13 > 0:03:18OK, this house needs a lot of love, a lot of tender loving care,
0:03:18 > 0:03:22but with some money and some imagination, it could look fantastic.
0:03:22 > 0:03:24It's got great bones.
0:03:24 > 0:03:27I'm quite excited about this one.
0:03:27 > 0:03:30# I'm so excited
0:03:30 > 0:03:31# And I just can't hide it
0:03:33 > 0:03:35# I know, I know, I know, I know, I know...
0:03:35 > 0:03:40'Down the colourful hallway, there's a second reception room and a disappointing kitchen.
0:03:40 > 0:03:46'Imagine this as one large room, though. It could be a really great family kitchen.
0:03:46 > 0:03:52'Upstairs in this house, that went to auction guided at £235,000, there are two good-sized bedrooms.
0:03:52 > 0:03:57'The master bedroom at the front has this wonderful window.
0:03:57 > 0:04:03'There's so much light here, and the floorboards look as though they'd sand down beautifully.
0:04:05 > 0:04:07'The second bedroom has another brilliant fireplace,
0:04:07 > 0:04:11'plus all the original carpentry that a house this old often has.
0:04:11 > 0:04:13'There's also a loo up here.
0:04:17 > 0:04:20'And two more rooms at the back, one is obviously bedroom three
0:04:20 > 0:04:24'and off that is a fourth room which might have been a bathroom at some time.
0:04:24 > 0:04:27'It has a door leading out onto a most curious roof terrace.
0:04:27 > 0:04:31'I'd get that checked out. But a word of caution now.
0:04:31 > 0:04:36'With no bathroom up here and no working kitchen downstairs, this house looks to be uninhabitable.
0:04:36 > 0:04:40'So there's little chance of getting a mortgage on it in this state.
0:04:40 > 0:04:44'And remember the loo upstairs? Well, I've found another one.'
0:04:48 > 0:04:53Now, this is the oldest toilet I've ever seen on Homes Under The Hammer.
0:04:57 > 0:05:03'A bit of a museum piece which will remind many viewers of their younger days,
0:05:03 > 0:05:06'when outside loos were surprisingly common.
0:05:06 > 0:05:13'Outside, there's a lovely leafy garden. It needs taming, but could be perfect for al fresco dining.'
0:05:13 > 0:05:19Landscaping a garden can add up to five percent on the end value of a property,
0:05:19 > 0:05:24and if you're frugal, you could tidy this little lot up for as little as £1,000.
0:05:24 > 0:05:28Now, if you're thinking low-maintenance garden, it could be better suited,
0:05:28 > 0:05:33or you could put some decking out here and you would seriously need to get the clippers out
0:05:33 > 0:05:37on this cherry tree, because as it stands, it just dominates most of this garden.
0:05:37 > 0:05:40My advice, though, do not overlook your garden area,
0:05:40 > 0:05:45because outside space is always desirable, and so do your best to showcase it.
0:05:45 > 0:05:49# I came across a place in the middle of nowhere with a big, black horse and a cherry tree
0:05:49 > 0:05:52# Whoo-hoo, whoo-hoo
0:05:52 > 0:05:55'This could make an ideal family garden.
0:05:57 > 0:06:01'Back inside, once you've restored the house to its former glory,
0:06:01 > 0:06:04'hopefully retaining lots of the original features,
0:06:04 > 0:06:08'the next thing to think about is the colour scheme. And I've got some advice.'
0:06:12 > 0:06:16Magnolia or colour? The debate rages on.
0:06:16 > 0:06:20Now, beige won't offend, plus it's easy to change.
0:06:20 > 0:06:25But with an influx of properties on the market, isn't it best to add some colour or pattern
0:06:25 > 0:06:27to differentiate your home from other houses?
0:06:27 > 0:06:32And when I say that, I don't mean something like this.
0:06:32 > 0:06:38'I mean soft greys, muted greens, maybe one accent wall with a bolder colour.
0:06:38 > 0:06:41'Just something to make your home more memorable.
0:06:41 > 0:06:44'I asked a local estate agent to take a look at this house,
0:06:44 > 0:06:48'which went to auction at a guide price of £235,000.
0:06:48 > 0:06:54'With so many original features remaining, he's convinced about the appeal of this place.'
0:06:54 > 0:06:58It's a developer's dream because it has got a lot of potential
0:06:58 > 0:07:03and it's on one of the very popular roads in the Forest Gate area.
0:07:03 > 0:07:08'The property's actually an end of terrace. On one side is a residential house,
0:07:08 > 0:07:10'on the other is a disused London Transport depot.
0:07:10 > 0:07:14'What about the overgrown garden at the back?'
0:07:15 > 0:07:20I think the garden just needs to be chopped down, but I do like the tree in the middle.
0:07:20 > 0:07:23# Cherry, oh, cherry, oh, baby
0:07:23 > 0:07:27'Let's talk figures. How much income could the house produce once renovated
0:07:27 > 0:07:31'if the new owner was successful in finding a tenant?'
0:07:31 > 0:07:36We would be able to rent this out for around £1,400 per calendar month.
0:07:39 > 0:07:43'What could the value of the property be after a good-quality refurbishment?'
0:07:45 > 0:07:51As it is, I would put it on the market for £250,000, as it does require some work.
0:07:51 > 0:07:57Potentially, if you develop it as a three-bedroom, then you're looking at close to £325,000.
0:07:57 > 0:08:01If you were to add the fourth office/bedroom, then you're possibly looking at
0:08:01 > 0:08:04around £350,000.
0:08:09 > 0:08:15So what do I think? Well, no bathroom and no kitchen equals no mortgage,
0:08:15 > 0:08:17so this one was for the cash buyers.
0:08:17 > 0:08:21Let's find out who was cash-rich as we go to auction.
0:08:21 > 0:08:26Lot three, a good-sized end-of-terrace house, bay fronted,
0:08:26 > 0:08:31requires some upgrading. Where can I kick off? I think I know what it is.
0:08:31 > 0:08:33200 anywhere?
0:08:33 > 0:08:36200. 200.
0:08:36 > 0:08:39205 anywhere? 205.
0:08:39 > 0:08:41210? 210.
0:08:41 > 0:08:44215. 220.
0:08:44 > 0:08:48220 with you. 225 elsewhere?
0:08:48 > 0:08:51225. 230.
0:08:52 > 0:08:56230. 235. 240.
0:08:56 > 0:09:00240. 245. 250.
0:09:00 > 0:09:04246? 245 with you.
0:09:04 > 0:09:08246 elsewhere? If not, 245.
0:09:08 > 0:09:10First time, second time,
0:09:10 > 0:09:14third and last time, if you're all done. 245.
0:09:14 > 0:09:20'That final successful bid of £245,000 came from Wayne.
0:09:24 > 0:09:30'Originally from New Zealand, Wayne's a lecturer in law who lives in the East End of London.
0:09:30 > 0:09:36'I met up with him back at the house to find out why this property fitted in so well to Wayne's world.'
0:09:36 > 0:09:38Wayne, congratulations.
0:09:38 > 0:09:43- You spent £10,000 over the guide price.- Mm-hm. - You must be quite happy with that.
0:09:43 > 0:09:46Yeah, that was within what I was expecting.
0:09:46 > 0:09:49What did you like so much about this house to bid for it?
0:09:49 > 0:09:52Well, the character. As we can see, the original features.
0:09:52 > 0:09:57But also, the potential for a really large loft conversion.
0:09:57 > 0:10:00It's nearly three metres of head-height up there.
0:10:00 > 0:10:05And by the time we add 40 cubic metres of allowable extension,
0:10:05 > 0:10:09we'll be able to have one large room at the front and then a shower room
0:10:09 > 0:10:12and then another bedroom at the back on the dormer.
0:10:12 > 0:10:19And that will... By the end of this, this will be five bedrooms, two bathrooms and a downstairs toilet.
0:10:19 > 0:10:24'The issue about getting finance on the house when it didn't have a bathroom or kitchen wasn't a problem
0:10:24 > 0:10:28'because Wayne's remortgaged his own property to secure the funds.
0:10:28 > 0:10:32'It's quite an ambitious project that he's taken on here, especially when you remember
0:10:32 > 0:10:37'his background is in law. So how is he going to do this, as well?'
0:10:37 > 0:10:40I'm a university professor, I'm on sabbatical at the present time
0:10:40 > 0:10:43and I've always wanted to get a rundown property
0:10:43 > 0:10:49and, at the present time, I go back to my lecturing in October,
0:10:49 > 0:10:54- so I thought now is the time. - Have you ever taken on anything like this before,
0:10:54 > 0:10:57like a whole house in need of complete renovation?
0:10:57 > 0:11:01Not really. I have renovated the house I've been living in
0:11:01 > 0:11:04and recently done a full loft conversion
0:11:04 > 0:11:08and, at the same, renovated virtually everything else in the house,
0:11:08 > 0:11:12like changing the bathrooms round, pulling down ceilings, relaying floors.
0:11:12 > 0:11:14That was quite a fun experience
0:11:14 > 0:11:22and the thing that actually got me going about picking up my interesting and doing a rundown house
0:11:22 > 0:11:25was the team of builders that was associated with that job.
0:11:25 > 0:11:28So I thought, "OK, we've got a good group of guys here,
0:11:28 > 0:11:32"we can use them for another project." And they're all on for it.
0:11:32 > 0:11:37- If you find a good team of builders, hold onto them!- Yeah.
0:11:37 > 0:11:42'So, Wayne's going to project-manage the team of builders who renovated his current house.
0:11:42 > 0:11:48'He intends to convert the loft and also extend into the area within permitted development rights.
0:11:48 > 0:11:52'He'll need to obtain building regulations, but not full planning permission.
0:11:52 > 0:11:56'He paid £245,000 for the property but that's only the beginning,
0:11:56 > 0:12:02'because there's lots of work needed here and a hefty budget, I suspect.'
0:12:02 > 0:12:06How much money do you think you'll need to spend to take it to the next level?
0:12:06 > 0:12:09- Well, my working budget is £70,000. - OK.
0:12:09 > 0:12:14I could go a little bit more than that, but then I'd have to sell of couple of valuables.
0:12:14 > 0:12:17- Which you don't want to have to do. - Not really, no.
0:12:17 > 0:12:23Let's talk about your garden. You've got a really pretty garden, if you could see it!
0:12:23 > 0:12:26You've got this whacking cherry tree, which is beautiful.
0:12:26 > 0:12:31- What are you going to do with that tree?- I really like it.
0:12:31 > 0:12:35I'll trim it back a little bit, but I'm certainly not going to get rid of it.
0:12:35 > 0:12:38I was told by a person who knew the family that lived here
0:12:38 > 0:12:44that originally, every house had one of those, and they've all taken them out, so this is the surviving one.
0:12:44 > 0:12:48# I came across a place in the middle of nowhere with a big black horse and a cherry tree
0:12:48 > 0:12:52# Whoo-hoo, whoo-hoo
0:12:52 > 0:12:56'In the loft space, he hopes to create two bedrooms and a shower room.
0:12:56 > 0:12:59'He's also hoping to add a corridor between the two back rooms,
0:12:59 > 0:13:02'gaining the extra space by removing the chimney breasts.
0:13:02 > 0:13:06'He's also going to build a new bathroom upstairs.'
0:13:07 > 0:13:13So, how long do you think it'll take you to get it all sorted and finished from top to bottom?
0:13:13 > 0:13:18Well, I think, from the beginning, I've got to get the architect to draw up some plans
0:13:18 > 0:13:24and we won't be requiring planning permission, because it will be within allowable requirements.
0:13:24 > 0:13:29So as soon as the architect's got them drawn up, I think we can start.
0:13:29 > 0:13:31I would hope three to four months.
0:13:31 > 0:13:36Wayne, it's been great meeting you. Good luck and I hope you manage to stick to your budget.
0:13:36 > 0:13:39- So do I!- Thank you very much.
0:13:39 > 0:13:42# And cherry tree
0:13:42 > 0:13:45# I can't quite get there cos my heart's forsaken me
0:13:45 > 0:13:48Will £70,000 be enough to renovate this house
0:13:48 > 0:13:52or will Wayne have to sell his valuables in order to complete this job?
0:13:52 > 0:13:57You can find out how he gets on with this huge challenge later on in the programme.
0:13:59 > 0:14:05Well, I'm on an ex-local authority estate about three miles south of Derby city centre.
0:14:05 > 0:14:131930s houses predominantly built to house the workers from the Rolls Royce factory which is nearby.
0:14:13 > 0:14:20What I'm here to see is this. A three-bed semi. Guide price was 50,000 quid. Let's take a look.
0:14:25 > 0:14:28'The Rolls Royce factory has long since closed,
0:14:28 > 0:14:32'but the 22-acre site is to be redeveloped.
0:14:32 > 0:14:36'In the long term, that could lead to a rise in property values around here.'
0:14:40 > 0:14:43So, what have we got? Fairly standard layout so far.
0:14:43 > 0:14:47Stairs up to the bedrooms there. And down the corridor, what is that?
0:14:47 > 0:14:50What a... That just doesn't work for me,
0:14:50 > 0:14:54to have the only loo and bathroom there at the end of this corridor.
0:14:54 > 0:14:59I don't like that you see it when you walk through the door. Is it any worse than having it at the rear?
0:14:59 > 0:15:03Maybe not. Ideally, you want that upstairs, keep that as a second loo.
0:15:03 > 0:15:06You've got a living room area there and then through to the kitchen.
0:15:06 > 0:15:10It's tired and dated, needs to be redone,
0:15:10 > 0:15:12and worse than that, it's very dark and dingy.
0:15:12 > 0:15:16That's partly because there's this conservatory lean-to on the back.
0:15:16 > 0:15:20So needs to be played around with, definitely improve the lighting, change the units,
0:15:20 > 0:15:24and already I'm thinking there's quite a lot of work.
0:15:24 > 0:15:26# I'm a big mess
0:15:26 > 0:15:30# I mean a really big mess
0:15:30 > 0:15:34# A big, big mess, he was all mixed up in a big mess
0:15:34 > 0:15:39'Looks like a lot of work downstairs. Let's take a look up top.'
0:15:42 > 0:15:47Upstairs, pretty simple really. Just three bedrooms. The obvious question is,
0:15:47 > 0:15:50would you bother bringing the bathroom from downstairs up here?
0:15:50 > 0:15:54There's space, you could put it in this room, but you lose a bedroom,
0:15:54 > 0:15:59which, if you're thinking about renting this place out, is going to have a significant impact.
0:15:59 > 0:16:04So, thinking it through, I think the toilet and bathroom are probably going to stay where they are.
0:16:06 > 0:16:09'At the back, there's a large garden.
0:16:09 > 0:16:15'With a lot of work but only a little spent on it, that could be a real selling feature here.'
0:16:17 > 0:16:22Bodged onto the rear of the property is this extension.
0:16:22 > 0:16:25I actually think this detracts from the property quite a lot,
0:16:25 > 0:16:29so either take it down or put something more substantial in its place.
0:16:29 > 0:16:35Before that, look at the value. The ceiling price of properties like this here is around £85,000.
0:16:35 > 0:16:38So you have to be very careful with your budget.
0:16:38 > 0:16:45Extension like that, how much will that cost? See if it's worth doing before you make the final decision.
0:16:45 > 0:16:49'The guide price for this house was £50,000.
0:16:49 > 0:16:53'Time to ask the auctioneer who sold it what he thinks.'
0:16:53 > 0:16:56Actually, although superficially it's a bit dog-eared,
0:16:56 > 0:17:00structurally, they're quite sound houses. They were well-built
0:17:00 > 0:17:04and they're the sort of house you can renovate and know that you're
0:17:04 > 0:17:06dealing with a sound property.
0:17:07 > 0:17:11'What about that downstairs bathroom?'
0:17:11 > 0:17:15You can move it but you're going to sacrifice a bedroom,
0:17:15 > 0:17:18so a three-bedroomed house becomes a two-bedroomed house.
0:17:18 > 0:17:24What does that do to its value? It probably restricts it reasonably significantly.
0:17:24 > 0:17:28So most people would keep it as three bedrooms and a downstairs bathroom.
0:17:31 > 0:17:38'What's the best option for a would-be investor, to do it up and sell on or renovate and rent out?'
0:17:39 > 0:17:43If this was upgraded and then offered on the rental market,
0:17:43 > 0:17:46the rental would be about £500 per calendar month.
0:17:46 > 0:17:49'That's an annual income of £6,000,
0:17:49 > 0:17:53'which makes the rental option a strong possibility.
0:17:53 > 0:17:56'What about the potential sale price once renovated?'
0:17:56 > 0:17:59The market for sale here is slightly difficult.
0:17:59 > 0:18:02They don't sell readily.
0:18:02 > 0:18:06And on today's market, the maximum you'd get for this as a three-bedroomed house
0:18:06 > 0:18:10would probably be somewhere between £85,000 and £90,000.
0:18:10 > 0:18:15You could ask for more than that, but I think that's probably what you'll end up getting.
0:18:15 > 0:18:17If it became a two-bedroomed house,
0:18:17 > 0:18:22you could probably take about £8,000 or £10,000 off that expectation.
0:18:26 > 0:18:30There are some internal modifications I'd like to make to this place,
0:18:30 > 0:18:33but before I did anything, I'd check the ceiling price
0:18:33 > 0:18:37and make sure I kept a tight rein on my budget.
0:18:37 > 0:18:41Still, a good property to go for. Let's see who did so at the auction.
0:18:42 > 0:18:46Lot number five. Three-bedroom semi. 52,000.
0:18:46 > 0:18:4948 if you like.
0:18:49 > 0:18:5248 I've got, thank you. At £48,000.
0:18:52 > 0:18:5449 somewhere else?
0:18:54 > 0:18:5749 is bid in the middle. 50 on the left.
0:18:57 > 0:19:0051. 52.
0:19:00 > 0:19:0253. 54.
0:19:02 > 0:19:05In the middle at 55. 56 somewhere else.
0:19:05 > 0:19:11We're selling it. It's going to get sold. 56. 56,500.
0:19:11 > 0:19:1457. 57,500.
0:19:14 > 0:19:1658. 58,500.
0:19:16 > 0:19:1959. 59,500.
0:19:19 > 0:19:2260,000. 500.
0:19:22 > 0:19:2461. 500.
0:19:24 > 0:19:2762.
0:19:27 > 0:19:2862,500.
0:19:28 > 0:19:3063 is bid.
0:19:30 > 0:19:3363,500?
0:19:33 > 0:19:3563,500.
0:19:35 > 0:19:3764,000.
0:19:37 > 0:19:4164,500. 65,000.
0:19:41 > 0:19:44500. 66?
0:19:44 > 0:19:48At 65,500. 66. Stick with it.
0:19:48 > 0:19:5066,500? No.
0:19:50 > 0:19:53£66,000. 500 somewhere else?
0:19:53 > 0:19:55At £66,000. Second thoughts, quickly.
0:19:55 > 0:19:59For the first time. 66 for the second time.
0:19:59 > 0:20:02Third and... 66,500.
0:20:02 > 0:20:0467?
0:20:04 > 0:20:0766,500 I'm bid. 67?
0:20:07 > 0:20:0967.
0:20:09 > 0:20:1167. One more?
0:20:11 > 0:20:14At £67,000, then. Once.
0:20:14 > 0:20:18Twice. Third time. Sold at 67,000.
0:20:18 > 0:20:23'The new owners of the semi, who paid £67,000 for it,
0:20:23 > 0:20:25'are Nabil and his cousin.
0:20:27 > 0:20:30'Nabil is from London, but his cousin lives locally.
0:20:30 > 0:20:32'They're first-time developers.
0:20:32 > 0:20:36'I met Nabil at the house to find out about their plans.'
0:20:36 > 0:20:41- Nabil, good to meet you.- Nice to meet you, too.- Congratulations.- Thank you.- Why did you want to buy it?
0:20:41 > 0:20:46Well, we wanted to get onto the property ladder and house prices are too expensive in London,
0:20:46 > 0:20:50so we thought we would try somewhere north. My cousin lives over here.
0:20:50 > 0:20:53He's my partner. He's purchased the property with me.
0:20:53 > 0:20:56So we found a cheap property and decided to go for it.
0:20:56 > 0:20:59Certainly, compare to London prices, it's...
0:20:59 > 0:21:03Yeah, you could probably pick up four or five semi-detached houses up here!
0:21:03 > 0:21:09- Right. So, what tempted you into the world of property investing?- It's better than working nine to five.
0:21:09 > 0:21:13- Right. What do you do at the moment? - I used to work in a bank
0:21:13 > 0:21:16and my partner, my cousin, he works in security.
0:21:16 > 0:21:20But we were thinking we need to get onto the property ladder and move forward,
0:21:20 > 0:21:24cos we can't just work nine to five and pay the mortgage and bills,
0:21:24 > 0:21:29- we want to get up there like everyone else.- And have a portfolio and have it earn you money.
0:21:29 > 0:21:31- Yeah.- So this is property number one. - Yep.
0:21:31 > 0:21:37- What's the bigger picture plan? - Property two and then three and then four.
0:21:37 > 0:21:42We have strict schedules. We want three properties by the end of the year.
0:21:42 > 0:21:46- And we have strict deadline, as well. - Right.- So we've got goals.
0:21:47 > 0:21:51'Nabil's certainly not lacking in enthusiasm or confidence.
0:21:51 > 0:21:56'He hopes this will be the first in a portfolio of buy-to-lets.
0:21:56 > 0:21:59'But back to square one now. What are his plans here?'
0:21:59 > 0:22:02We're going to start by stripping everything out.
0:22:02 > 0:22:08Everything's going, the kitchen, the bathroom, the flooring. We'll strip everything out and start a fresh.
0:22:08 > 0:22:11And the conservatory, as well. It really needs restructuring,
0:22:11 > 0:22:14the floor needs to be re-concreted.
0:22:14 > 0:22:19- And that's really it. - OK. Fairly major job, though.
0:22:19 > 0:22:24- Yes, it is.- So, what's the budget. - It is a strict budget of about 3,000.
0:22:24 > 0:22:30- Three?- Three. But we've worked out the figures.
0:22:30 > 0:22:36It is surprising. And if I told somebody else, they'd be just as surprised.
0:22:36 > 0:22:42But I'm hopeful and I'm a pretty sure that we will stick to the budget
0:22:42 > 0:22:45and I know, in many cases, it does go over.
0:22:45 > 0:22:52- But even going over by £1,000 is fine by me.- When you've finished, will you do one of my properties?- No problem.
0:22:52 > 0:22:56Central heating, bathroom, kitchen,
0:22:56 > 0:22:59- conservatory, full rewire.- Yes.
0:22:59 > 0:23:02- And painting, decorating, cleaning up.- Yes.- Three grand.
0:23:02 > 0:23:05- Yes.- And timescale? - Two and a half weeks.
0:23:05 > 0:23:10- Now, you are having a laugh, aren't you?- I've planned everything out. It's my first property
0:23:10 > 0:23:13and I've spoken to all the right people
0:23:13 > 0:23:17and this is exactly what I've written down on paper,
0:23:17 > 0:23:20deadlines, times, schedules, cost,
0:23:20 > 0:23:25and hopefully, in two and a half weeks, we'll have this house completed and you can come back
0:23:25 > 0:23:29and have a look and you'll say, "Hold on a minute, Nabil,
0:23:29 > 0:23:32"I'm actually quite surprised."
0:23:32 > 0:23:35- I'll eat my hat!- I'll bring one for you.- Thank you very much!
0:23:35 > 0:23:42'Nabil's got his renovation planned with precision, which is vital if he's to stay on-budget.
0:23:42 > 0:23:48'He's getting lots of work done by family members who work in the building trade.
0:23:48 > 0:23:53'But even so, I think I will be able to leave my hat firmly on my head.'
0:23:53 > 0:23:56# You can leave your hat on
0:23:56 > 0:24:00Why such a mad scramble to get it done?
0:24:00 > 0:24:03Cos I want to move on to the second property.
0:24:03 > 0:24:08I know I haven't got much experience in this, but I don't want to waste time. House prices are rising.
0:24:08 > 0:24:14Some properties are very cheap in areas and we want to get in there and take them.
0:24:14 > 0:24:17Right. Well, heck, you've set yourself a bit of a challenge.
0:24:17 > 0:24:21- Yep.- But I wish you all the best with it.- Thank you very much.
0:24:21 > 0:24:25- We'll be back in two and a half weeks. - I hope to show you a nice property.
0:24:25 > 0:24:27- Good luck.- Thank you very much.
0:24:27 > 0:24:31# You can leave your
0:24:31 > 0:24:34# Hat on
0:24:34 > 0:24:41So, a two and a half week timescale and £3,00 budget? What do you think?
0:24:41 > 0:24:44If I was a betting man, I'd be off down the local bookies
0:24:44 > 0:24:49putting £10 on the fact that Nabil won't meet either of those.
0:24:49 > 0:24:54Still, you never know, I could be eating my hat later in the show.
0:24:55 > 0:25:01'If you're thinking of splashing the cash in this Kent house, a word of warning.'
0:25:01 > 0:25:05If you overspend on this property, you could be out of pocket.
0:25:05 > 0:25:10'We return to Derby to see how Nabil got to grips with project management.'
0:25:10 > 0:25:17I haven't stayed on top of the builders. They've been left to do it how they want, with my instructions.
0:25:17 > 0:25:22'But first, it's back to London, where some hard decisions have been taken.'
0:25:22 > 0:25:25Of course, the dilemma was the cherry tree.
0:25:29 > 0:25:33'Earlier in the programme, we were in Forest Gate, East London,
0:25:33 > 0:25:37'where Wayne had bought this semi-detached property, dating back to 1872,
0:25:37 > 0:25:43'for £245,000. He's a professor of law and had taken a year's sabbatical.
0:25:43 > 0:25:46'He'd already done a full refurbishment on his own house,
0:25:46 > 0:25:50'and his team of builders were about to tackle this one.'
0:25:50 > 0:25:53What did you like about this house enough to bid for it?
0:25:53 > 0:25:56Well, the character. As we can see, the original features.
0:25:56 > 0:26:01But also the potential for a really large loft conversion.
0:26:06 > 0:26:09'The work's taken less than three months
0:26:09 > 0:26:14'and Wayne's invited us back to show us how much the place has changed.
0:26:15 > 0:26:18'Well, the outside paintwork has clearly had some attention.
0:26:22 > 0:26:26'Through the front door, and the hall has now lost that multi-coloured scheme
0:26:26 > 0:26:28'and a feature's been made of the floorboards.
0:26:28 > 0:26:33'It's great to see that large living room has retained the two fireplaces and architraves,
0:26:33 > 0:26:36'and again, the floorboards look stunning.
0:26:41 > 0:26:45'At the back of the house, the former dining room and kitchen have been opened up
0:26:45 > 0:26:48'to make one stunning kitchen/diner.
0:26:52 > 0:26:56'The outside loo has been turned around and is now inside
0:26:56 > 0:27:00'and patio doors lead out onto the garden.
0:27:00 > 0:27:04'From here, the size of Wayne's loft conversion can clearly be seen.
0:27:04 > 0:27:09'There's a small rear bedroom, a bathroom and more stunning timber on show.'
0:27:11 > 0:27:19Well, this was actually part of the reason I bought the place, cos I could see the potential of this.
0:27:19 > 0:27:23Structurally, this was about the easiest part of the house to refurbish.
0:27:23 > 0:27:28I'm very pleased with the standard of work. A lot of light. Two large Velux windows,
0:27:28 > 0:27:32large French doors and balcony.
0:27:32 > 0:27:38I would've liked the small room at the back to be larger, but we had to work out where to put the plumbing.
0:27:38 > 0:27:45It's a large-scale plumbing system, so we had to work out where to put it. But this is a very large room.
0:27:48 > 0:27:52'If you head down one flight of stairs from the loft,
0:27:52 > 0:27:55'the front master bedroom has been totally refurbished.'
0:27:55 > 0:28:00Well, this room, I tried to keep some kind of character to it
0:28:00 > 0:28:04and I decided to leave the brickwork exposed.
0:28:04 > 0:28:08The problem with that is, you have to have brickies basically relay it
0:28:08 > 0:28:13and redo all the pointing and then put it with a proper mortar
0:28:13 > 0:28:15so that it's not a damp issue.
0:28:15 > 0:28:18I definitely think the work's been worth it.
0:28:18 > 0:28:24'The room's delightful and the original features in bedroom two also remain and have been restored.
0:28:27 > 0:28:31'But refurbishing a property this age inevitably throws up problems.
0:28:31 > 0:28:35'The water main into the house was the original Victorian pipe,
0:28:35 > 0:28:37'so that had to be relocated across the road.
0:28:37 > 0:28:42'That meant a nasty extra bill of £4,000.
0:28:42 > 0:28:45'So how much has all the work cost?'
0:28:45 > 0:28:49Well, originally, I'd hoped to get by with the building work for 70 to 80
0:28:49 > 0:28:55and then allow another 10 or 15 to produce things like the kitchen units and the painting.
0:28:55 > 0:28:58So it was higher than that. It's gone to about 110 in total.
0:28:58 > 0:29:02'Well, you can see where the money's gone. Like the kitchen.
0:29:02 > 0:29:07'The bathroom suite on the first floor is clearly of a high specification.
0:29:09 > 0:29:15'The challenge at the back of the first floor was to create a separate access to the two rooms.'
0:29:15 > 0:29:21This was two rooms and there was a very small Victorian toilet.
0:29:21 > 0:29:27We knocked it all out. And there were two chimney breasts, which we took out.
0:29:27 > 0:29:30The problem was that the exterior wall was bowed.
0:29:30 > 0:29:35We took the roof off at this stage and re-bricked the entirety of the outside wall
0:29:35 > 0:29:37from about here up to the top of the roof.
0:29:37 > 0:29:41And it has the largest door of the house, so what we're trying to achieve
0:29:41 > 0:29:47is a flow of light from the front windows all the way through to the balcony.
0:29:47 > 0:29:52'From the roof terrace, you can see how much work was needed to tidy up the garden.'
0:29:52 > 0:29:56Well, of course, the dilemma was the cherry tree.
0:29:56 > 0:30:01And we had numerous cherry-picking parties. The birds got most of it.
0:30:01 > 0:30:06I did get in a tree surgeon who looked at it and said it was 70 to 80 years old,
0:30:06 > 0:30:11and that if we trimmed it back, we could get another 25 years out of it.
0:30:11 > 0:30:13# With a big black horse and a cherry tree
0:30:13 > 0:30:16'What are his plans for the property?'
0:30:16 > 0:30:19I doubt whether we'd be selling it in the short term.
0:30:19 > 0:30:24It'll probably go for rent and then see what it's like in two or three years.
0:30:27 > 0:30:30'Time to see what two local estate agents think of the house
0:30:30 > 0:30:32'that Wayne's refurbished.'
0:30:33 > 0:30:38It's a good-size property in quite a sought-after location.
0:30:38 > 0:30:41It's got a good-size garden which is quite rare in this location.
0:30:41 > 0:30:46And it's got three storeys, which is very unusual.
0:30:46 > 0:30:48He has done a really nice job to it
0:30:48 > 0:30:52and he's fitted it to a really nice standard with wood flooring,
0:30:52 > 0:30:56and did the loft extension, as well, which adds another dimension to it,
0:30:56 > 0:30:59and cleaned up the garden.
0:30:59 > 0:31:02I think the extra bathroom definitely makes a difference.
0:31:02 > 0:31:06You also have a downstairs WC, which is also a good feature.
0:31:06 > 0:31:11I definitely think it does work well as a family house, because you've got the two reception rooms
0:31:11 > 0:31:15or the opportunity to have two reception rooms or a large through lounge.
0:31:15 > 0:31:19'So, has Wayne's investment here been worthwhile?
0:31:19 > 0:31:25'Remember, he paid £245,000 at the auction and spent about £110,000 on the work,
0:31:25 > 0:31:28'making £355,000 in total.'
0:31:30 > 0:31:36I believe, in the current market, we would market this property for £425,0000.
0:31:36 > 0:31:40I would suggest an asking price for this property around about £500,000.
0:31:40 > 0:31:44'That range of £425,000 to £500,000
0:31:44 > 0:31:48'would produce a gross profit, before the usual selling expenses,
0:31:48 > 0:31:52'of between £70,000 and £145,000.
0:31:52 > 0:31:57'Wayne reckons that the upper valuation only reflects what the house could raise
0:31:57 > 0:32:00'if it attracted buyers from more expensive areas.'
0:32:00 > 0:32:04That's quite a big discrepancy. Myself, I was tending towards the lower one.
0:32:04 > 0:32:08It is actually on the market for slightly more than the lower one.
0:32:08 > 0:32:13'Wayne plans to put the house up for sale for a couple of months to test the market
0:32:13 > 0:32:16'and if he doesn't find a buyer, then he'll look at renting.'
0:32:16 > 0:32:21I think this property would rent for £1,600 per calendar month.
0:32:21 > 0:32:26I would expect it to achieve around about £3,500 per calendar month.
0:32:27 > 0:32:32'Well, quite a difference. What does Wayne think of those two valuations?'
0:32:32 > 0:32:36Well... Well, upper one... What's their number?
0:32:36 > 0:32:41No, I think the upper one, again, is thinking of a niche market there.
0:32:41 > 0:32:44'So Wayne's year off from his law lecturing job
0:32:44 > 0:32:48'looks to have been a success. Does he fancy another project?'
0:32:48 > 0:32:51Well, I would quite like to do it again, yes.
0:32:51 > 0:32:55Not for six months, though. I have to catch up on some academic work.
0:33:00 > 0:33:02'For the next property that went to auction,
0:33:02 > 0:33:07'I've come to one of Kent's Medway Towns, a couple of miles from Chatham.'
0:33:07 > 0:33:11Gillingham in Kent has a very bright future indeed.
0:33:11 > 0:33:15The ambitious Medway waterfront renaissance strategy
0:33:15 > 0:33:20is a 20-year plan for the redevelopment of up to seven miles of waterfront
0:33:20 > 0:33:28all along the River Medway. Now, this project will create 6,000 to 8,000 new homes and 8,500 jobs.
0:33:28 > 0:33:31So that's good news for Medway, good news for Gillingham.
0:33:31 > 0:33:34'The property I'm here to see is in this street of terraces.
0:33:34 > 0:33:38'On auction day, it had a guide price of £80,000 to £85,000,
0:33:38 > 0:33:42'and from the outside, it seems in pretty good order.
0:33:42 > 0:33:48'The windows and door look like they're recently been replaced, so the outside is promising.'
0:33:48 > 0:33:53Let's go inside and see what you get for that £80,000 to £85,000 guide price.
0:33:54 > 0:33:58So, straight from the street into the lounge.
0:33:58 > 0:34:02Bit of a step there. I'd probably try and get that sorted out.
0:34:02 > 0:34:05A little bit disappointing on the inside.
0:34:05 > 0:34:09It's really tired, really dated. Not a bad space.
0:34:09 > 0:34:12You've got to put your rose-tinted glasses on when you walk in
0:34:12 > 0:34:16and think about what this room could look like,
0:34:16 > 0:34:21but so far, I'm not terribly impressed. Let's have a look through there.
0:34:21 > 0:34:25So, you've got much of the same decor in here. Same size room.
0:34:25 > 0:34:31But, again, you've got lots of Artex, the curtains and the carpets all need to be dragged out
0:34:31 > 0:34:33and it just needs a big old freshen up.
0:34:33 > 0:34:38What I do like, though, is the fact that there's a nice big doorway leading out to a patio space.
0:34:38 > 0:34:42That really is a plus point. And the kitchen, again, a real negative for me.
0:34:42 > 0:34:46I mean, look how narrow this place is. It's just not wide enough.
0:34:46 > 0:34:53If I were to take this property on, I'd like to take some of this wall out to really open this area up.
0:34:53 > 0:34:57And right down the end there,
0:34:57 > 0:35:00downstairs bathroom. Not ideal.
0:35:00 > 0:35:05'I hope that the layout of this property upstairs could accommodate moving the bathroom up there.
0:35:05 > 0:35:09'The house is also rather grubby and needs a good clean,
0:35:09 > 0:35:13'but the kitchen and bathroom at the back do add extra space. And it doesn't stop there.'
0:35:17 > 0:35:20And outside, the garden is huge!
0:35:21 > 0:35:26'What a bonus! Yes, it's a wilderness now, but what an opportunity
0:35:26 > 0:35:28'to add value to the property.
0:35:31 > 0:35:36'Upstairs, unfortunately, the space isn't great.
0:35:36 > 0:35:40'So my suggestion of relocating the bathroom looks unlikely.
0:35:41 > 0:35:47'This is a classic two-up, two-down property with a front and back bedroom,
0:35:47 > 0:35:50'but there may be an answer to getting more space.'
0:35:51 > 0:35:54Upstairs, there's a loft area
0:35:54 > 0:35:58and I'm always in favour of converting unutilised spaces,
0:35:58 > 0:36:02but in this property, I think I would leave things as they are.
0:36:02 > 0:36:06Planning the loft into a habitable space, it may make this property more saleable.
0:36:06 > 0:36:09You can see people have even done it out there in the street.
0:36:09 > 0:36:12But it won't increase its value.
0:36:12 > 0:36:16The ceiling price on this is just over £100,000.
0:36:16 > 0:36:20If you overspend on this property, you could be out of pocket.
0:36:21 > 0:36:25'Time to get some expert advice from a local estate agent
0:36:25 > 0:36:27'familiar with the housing market around here.'
0:36:27 > 0:36:30'The downstairs layout is not ideal,
0:36:30 > 0:36:33'so might that put some people off?'
0:36:33 > 0:36:35It's not ideal, having a galley kitchen
0:36:35 > 0:36:39and the bathroom being downstairs, but for this area, it's normal.
0:36:39 > 0:36:44Shame there's only two bedrooms, cos there's a lot of three-beds round here to compete with,
0:36:44 > 0:36:46but downstairs is a decent size.
0:36:46 > 0:36:50'Let's talk figures. For buy-to-let investors tempted by this place,
0:36:50 > 0:36:54'what level of rental income could it generate once refurbished?'
0:36:54 > 0:36:59For a property in this location, we'd be looking to achieve in the region of £600 per calendar month.
0:36:59 > 0:37:06'And what about resale? What could this house, that went to auction guided at £80,000 to £85,000,
0:37:06 > 0:37:08'be worth after a full makeover?'
0:37:08 > 0:37:12There is a ceiling price, with it being a mid-terrace and being a two-bedroom.
0:37:12 > 0:37:16Absolute top price, in stunning order, would be £115,000
0:37:16 > 0:37:23but realistically, it would probably sell for in the region of £105,000 to £110,000.
0:37:23 > 0:37:27Well, it doesn't look like the bathroom's going anywhere.
0:37:27 > 0:37:31'But with such a great garden, maybe that's not such a problem.'
0:37:31 > 0:37:34'I have to admit it, I am not wild about this terrace.
0:37:34 > 0:37:37'Let's go to the auction and see who wanted this.'
0:37:37 > 0:37:40Right, lot 59. It's a vacant house for improvement.
0:37:40 > 0:37:43It's got glass heating, lots of double glazing.
0:37:43 > 0:37:45Ideal for letting or occupation.
0:37:45 > 0:37:49Where you going to start on that one? Can I start at 75 for that one?
0:37:49 > 0:37:5275. Start me where you will. Give me 70, then.
0:37:52 > 0:37:56£70,000 bid I have. And 2. 72.
0:37:56 > 0:38:0172. 75. At £75,000. 7 I'm looking for.
0:38:01 > 0:38:04Are we all done at £75,000? 77.
0:38:04 > 0:38:08And 80. And 2. And 4. And 6. 86.
0:38:08 > 0:38:1188. And 90.
0:38:11 > 0:38:16At 90. And 2. 92. And 4. 94.
0:38:16 > 0:38:2094. And 6. 95. 95.
0:38:20 > 0:38:23He's getting a little bit tired of it. 95. 96?
0:38:23 > 0:38:26First time at £95,000, then.
0:38:26 > 0:38:30Second time at 95,000. 96. I'm obliged. 97 I'm bid.
0:38:30 > 0:38:3598. It's against you again. At £97,000 for the first time.
0:38:35 > 0:38:37£97,000 for the second time.
0:38:37 > 0:38:40With you sitting down, sir, at £97,000.
0:38:40 > 0:38:44Definitely out of it. Third and final time at 97, then.
0:38:44 > 0:38:46£97,000. And a number, please.
0:38:46 > 0:38:51'That successful final bid of £97,000 was made by Brian.
0:38:51 > 0:38:56'He used to work in insurance, but nowadays, feels more assured working with property.
0:38:56 > 0:38:58'I met up with him back at his new purchase
0:38:58 > 0:39:00'to see if this was going to be a premium buy
0:39:00 > 0:39:03'even though it's got an excess amount of work to do.'
0:39:04 > 0:39:09- Brian, congratulations on your purchase.- Thank you. - How well do you know Gillingham?
0:39:09 > 0:39:16Not very well. I have another property here in the lower part of Gillingham, which I've had some time,
0:39:16 > 0:39:22- and that's going quite well. - What were you doing at the auction? Were you looking for a property?
0:39:22 > 0:39:25- Was this the house you were after? - No.
0:39:25 > 0:39:31We rely on either rents or deposited money in building societies or banks
0:39:31 > 0:39:34and it's so miserable, the rate you get,
0:39:34 > 0:39:41that I collected about 90-odd thousand and I thought it better go into what I know,
0:39:41 > 0:39:46- it better go into property. - You sound like you're quite knowledgeable about property.
0:39:46 > 0:39:52- Is this something you've always been interested in?- Well, when Jo and I got married in 1959,
0:39:52 > 0:39:55she had 300 quid, I hadn't got a bean, I'd spent all mine, the usual,
0:39:55 > 0:39:58so she'd saved up 300 quid.
0:39:58 > 0:40:01There's not much you could get for 300 quid,
0:40:01 > 0:40:07so we took a mortgage on a terraced Victorian house, three floors,
0:40:07 > 0:40:12and in four years, we'd done well enough to buy the house next door
0:40:12 > 0:40:16and converted it to two flats and moved next door. Then we moved to the next street.
0:40:16 > 0:40:22- So for how many years have you and your wife been buying and selling and developing?- Since '59.
0:40:22 > 0:40:26- How many do you think you've bought and sold?- 40.
0:40:26 > 0:40:29'Wow! That's what I call a serious developer.
0:40:29 > 0:40:33'He owns several buy-to-lets in the Kent area, and amazingly,
0:40:33 > 0:40:37'is still full of ambition in his 78th year.'
0:40:37 > 0:40:41# I just can't get enough, I just can't get enough
0:40:45 > 0:40:48# I just can't get enough, I just can't get enough
0:40:49 > 0:40:53What do you do? Do you deal with your tenants on a day-to-day basis?
0:40:53 > 0:40:58Yes, I do the lot. I don't like putting it out to other people to do. I like to do it myself.
0:40:58 > 0:41:04So you're still buying, you're still about to renovate. Aren't you supposed to be taking it easy?
0:41:04 > 0:41:06- I am taking it easy.- Are you?
0:41:06 > 0:41:11- You don't look like you're taking it easy to me!- I don't tear around as much as I used to.
0:41:11 > 0:41:13What are you planning to do with this house?
0:41:13 > 0:41:17I haven't really had a chance to look cos the electric wouldn't go on.
0:41:17 > 0:41:21- I'm going to get rid of the smells and the carpets.- It's a bit smelly.
0:41:21 > 0:41:27Paint it from top to bottom. Repair a couple of doors I happened to see which are not too good.
0:41:27 > 0:41:33How far are you going to take this? Because you've got plasterwork, swirling patterns on the ceiling,
0:41:33 > 0:41:39the kitchen's a bit narrow, we've got a downstairs bathroom. How far are you going to take this?
0:41:39 > 0:41:44I'm going to use some common sense, really. I'm not going to spend a fortune.
0:41:44 > 0:41:48- I hope to get out under £5,000.- And what are you going to do for that?
0:41:48 > 0:41:52Erm, redecorate throughout. Look at the wiring.
0:41:52 > 0:41:54- Tidy up the kitchen.- Not change it?
0:41:54 > 0:41:58Might change it. It depends how well it cleans up.
0:41:58 > 0:42:01There's nothing wrong with the units, they're just filthy dirty.
0:42:01 > 0:42:04It wants a new worktop, perhaps, and a new sink.
0:42:04 > 0:42:08We'll decide as we go. But it's got to look a lot better than this.
0:42:08 > 0:42:13'Nowadays, Brian project-manages to work and keeps an eye on the builders.
0:42:13 > 0:42:18'He used to do all the heavy work himself, but now leaves that to the professionals.'
0:42:18 > 0:42:23So, Brian, what is the timescale? How long is it going to take you to knock this place out?
0:42:23 > 0:42:28Well, I don't know whether we'll achieve it, but we're going to try and do it in a month.
0:42:28 > 0:42:31- Cos I want to go on holiday.- Ah! So it's all about the big holiday!
0:42:31 > 0:42:34- I've got to have some reward. - Do you think you'll achieve that?
0:42:34 > 0:42:39Looking round now, it's going to be a tough one. But we're going to try.
0:42:39 > 0:42:43It's been so lovely meeting you today. Good luck with this project.
0:42:43 > 0:42:46And you've got to slow down. I'm telling you that.
0:42:46 > 0:42:49- Everybody tells me that.- Do they?
0:42:49 > 0:42:54'I reckon Brian's certainly up there with the more experienced developers we've had on the programme.
0:42:54 > 0:42:56'He's certainly earned his holiday.'
0:42:56 > 0:43:01Will Brian and his wife get this finished in time to go on their holiday?
0:43:01 > 0:43:06It's their plan to have it renovated and rented out by then. And that is only a month away.
0:43:09 > 0:43:12Well, it's been a while now since we saw those properties.
0:43:12 > 0:43:16Mm. Do they look any different? Has all that time and money been well-spent?
0:43:16 > 0:43:18Let's go back and find out.
0:43:20 > 0:43:25'We return now to Derby, where I visited this three-bed semi-detached
0:43:25 > 0:43:28'and met 27-year-old Nabil.
0:43:28 > 0:43:34'He'd previously worked at a bank, but was now beginning a career as a property developer.
0:43:35 > 0:43:39'This house would be his first renovation
0:43:39 > 0:43:43'and he planned to use family contacts in the building trade to do the work
0:43:43 > 0:43:46'while he project-managed.
0:43:46 > 0:43:49'Nabil wanted to renovate that tired and tatty kitchen.
0:43:49 > 0:43:54'The ground-floor bathroom needed to be ripped up and thrown away.
0:43:54 > 0:43:57'The bedrooms could do with being refurbished and decorated.
0:43:57 > 0:44:04'And Nabil proposed to do all this on a super-speedy schedule and a teeny-weeny budget.'
0:44:04 > 0:44:08- So what's the budget?- It is a strict budget of about £3,000.
0:44:08 > 0:44:10- Three?- Three.
0:44:10 > 0:44:13- And timescale?- Two and a half weeks.
0:44:13 > 0:44:16Now, you are having a laugh, aren't you?
0:44:16 > 0:44:20In two and a half weeks, we'll have this house completed and you can come back
0:44:20 > 0:44:24and you'll say, "Hold on a minute, Nabil, I'm actually quite surprised."
0:44:25 > 0:44:28'Surprised? I'd be astonished.
0:44:28 > 0:44:32'Well, not two and a half weeks, but 12 weeks later, we're back.
0:44:32 > 0:44:35'Surely the house will be finished by now.
0:44:39 > 0:44:42'Well, there's not much change on the outside,
0:44:42 > 0:44:47'apart from a pallet of breeze blocks, which I don't believe to be an ornamental garden feature.
0:44:50 > 0:44:54'In the lounge, the ceiling and the walls have been replastered,
0:44:54 > 0:44:58'spotlights fitted, and I do like the new woodwork.
0:45:00 > 0:45:07'In the kitchen, the units have been replaced, but there's still a lot of work to be done.'
0:45:07 > 0:45:10'The oven needs a hob and the sink could do with some taps.
0:45:10 > 0:45:15'It would appear Nabil has fallen just a tab behind schedule.'
0:45:15 > 0:45:21Realistically, I've only had the builders in here for four weeks, and that's unsupervised work.
0:45:21 > 0:45:27I haven't stayed on top of the builders. They've been left to do how they want, with my instructions.
0:45:27 > 0:45:31The only thing we've got left to do is a little bit of touch-up here and there.
0:45:32 > 0:45:37'Off the kitchen was a beat-up and broken-down lean-to,
0:45:37 > 0:45:40'which Nabil decided to replace with an extension.
0:45:42 > 0:45:47'I think this needs more than a touch-up here and there.'
0:45:47 > 0:45:50Well, the original extension was in a very, very poor state.
0:45:50 > 0:45:55We decided to take it out further and extend it across to the bathroom.
0:45:55 > 0:45:58We're having new double glazing all the way across, new roof.
0:45:58 > 0:46:03We now have to re-cement the floor, re-concrete it, flatten it out,
0:46:03 > 0:46:05cos the original was in a real bad state.
0:46:05 > 0:46:08At the moment, we still have a few things left to do.
0:46:08 > 0:46:14The walls need to be pushed all the way back up, plasterboarded, skimmed for it to look in a beautiful state.
0:46:15 > 0:46:19'I'd agree that getting rid of the lean-to was a good idea,
0:46:19 > 0:46:22'but Nabil's created a lot of extra work for himself.
0:46:22 > 0:46:28'The new extension should eventually improve the look of the house and hopefully the value, too.
0:46:28 > 0:46:34'Let's take a look in the bathroom, the entrance to which was directly ahead of the front door.
0:46:34 > 0:46:38'Most definitely not the best sight to welcome you upon entering.
0:46:40 > 0:46:45'Nabil has cleverly moved the entrance along and refitted the whole bathroom.'
0:46:45 > 0:46:49We decided to extend the bathroom out into the kitchen
0:46:49 > 0:46:57and put the bath up against the wall, we put a new double-glazed window,
0:46:57 > 0:47:00new toilet, new sink, new flooring.
0:47:00 > 0:47:02The original one was quite small.
0:47:02 > 0:47:07It did have a direct view in front of the entrance, so we decided to extend it out here,
0:47:07 > 0:47:10nice door on the side, out of sight.
0:47:10 > 0:47:14Nice shower in the corner. And it's much more roomy and much more spacious.
0:47:16 > 0:47:20'Nabil's changes to the layout work well.
0:47:20 > 0:47:23'Let's head up the new staircase to the bedrooms.
0:47:25 > 0:47:30'All three of them have been replastered and had new carpets laid.
0:47:30 > 0:47:36'The schedule for getting this house ready to rent out may have ballooned from two and a half weeks
0:47:36 > 0:47:42'to three months, but has he kept control of his original £3,000 budget?'
0:47:42 > 0:47:44We had to go over due to the extension.
0:47:44 > 0:47:49And it may sound insane, but we only spent about £5,500.
0:47:50 > 0:47:56'Nabil thinks he won't actually have to spend any more money to complete the work here.
0:47:56 > 0:48:03'He's gone over-budget, but it looks like having family in the trades has helped keep the budget down.
0:48:04 > 0:48:08'All that remains is to get this finished and let out.'
0:48:08 > 0:48:11I've had quite a large interest from the local area,
0:48:11 > 0:48:16people knocking on the door, asking, "When it is going to be available for rental?"
0:48:16 > 0:48:21I've got somebody who's actually put an offer in of £550 per calendar month.
0:48:21 > 0:48:24And I'm just waiting for the house to be completed.
0:48:24 > 0:48:28'Including their £67,000 purchase price,
0:48:28 > 0:48:34'Nabil and his cousin have invested a total of £72,500 here.
0:48:36 > 0:48:41'We invited along two local estate agents to get their opinions on it.'
0:48:41 > 0:48:45When you first come in, it looks a big improvement on what was here before.
0:48:45 > 0:48:49As you look around, you see there's a few things that need finishing off
0:48:49 > 0:48:52and it's quite probable that there are little things
0:48:52 > 0:48:55that haven't been done as well as they might have been.
0:48:55 > 0:48:58The bathroom being downstairs can be a disadvantage,
0:48:58 > 0:49:03so making that bigger and having a separate shower makes a difference.
0:49:05 > 0:49:09'Nabil estimates that his total outlay will be £72,500
0:49:09 > 0:49:15'and the experts believe it could have a sell-on value of between £80,000 and £85,000.
0:49:15 > 0:49:21'That's a potential pre-tax profit of between £7,500 and £12,500.
0:49:22 > 0:49:26'This has always been a buy-to-let investment.
0:49:26 > 0:49:31'Bearing in mind Nabil's rental offer of £550 per calendar month,
0:49:31 > 0:49:35'let's find out what this property could achieve on the rental market.'
0:49:37 > 0:49:41It would have a rental value of around £500 per calendar month.
0:49:41 > 0:49:46A rental valuation for this property would be £450 per calendar month.
0:49:48 > 0:49:52'But, despite being over-budget and behind schedule,
0:49:52 > 0:49:54'Nabil is having the last laugh.
0:49:54 > 0:50:00'Since filming, a tenant has moved in and is paying £525 per calendar month.
0:50:00 > 0:50:06'Nabil hopes house prices will drop even further and is considering buying his next property in London.'
0:50:06 > 0:50:12This has given me a boost to carry on and purchase my target of three properties by the end of the year
0:50:12 > 0:50:15and maybe next year carry on and buy a few more.
0:50:18 > 0:50:21'Time now to return to Gillingham in Kent.
0:50:21 > 0:50:25'Earlier in the programme, Brian, a seasoned developer in his 70s,
0:50:25 > 0:50:28'had paid £97,000 for this mid-terrace property
0:50:28 > 0:50:31'to add to his buy-to-let portfolio.
0:50:31 > 0:50:33'Brian was going to project-manage the work.
0:50:33 > 0:50:38'He intended to give the house a complete cosmetic facelift
0:50:38 > 0:50:43'but keep the kitchen and bathroom if possible. He'd set himself an ambitious timescale.'
0:50:43 > 0:50:45How long is it going to take you to knock this place out?
0:50:45 > 0:50:48Well, I don't know whether we'll achieve it,
0:50:48 > 0:50:52but we're going to try and do it in a month. Cos I want to go on holiday.
0:50:52 > 0:50:53# Holiday
0:50:53 > 0:50:55'Well, it's now four months later.
0:50:55 > 0:51:00'We met up again with Brian to discover why the work had taken longer than expected.
0:51:01 > 0:51:05'The dated decor has gone.
0:51:09 > 0:51:14'The neutral shades continue through to the back room, as well.
0:51:17 > 0:51:21'Upstairs, and again, the two bedrooms have been toned down.
0:51:21 > 0:51:24'But Brian quickly discovered he'd taken on a project
0:51:24 > 0:51:28'that needed all his developer's expertise to turn it around.'
0:51:28 > 0:51:31It's been a bit more of a headache than some.
0:51:31 > 0:51:33On first glance, it looked OK.
0:51:33 > 0:51:38It looked as if it was a quick refurbishment.
0:51:38 > 0:51:43But when you got into it, the walls and the doors were crooked, the ceiling was bent
0:51:43 > 0:51:46and you can't patch them up. I can't do bodging.
0:51:46 > 0:51:49I have to do it so that it's right.
0:51:51 > 0:51:55'Brian's team had to replace the ceiling in the bedroom and replaster the walls.
0:51:55 > 0:52:00'The whole house has been rewired. But what about the kitchen?
0:52:00 > 0:52:04'Remember that Brian wasn't sure if he would replace it or not.'
0:52:04 > 0:52:07We decided, in the end, to replace the lot.
0:52:07 > 0:52:10It's a completely new kitchen, flooring and everything.
0:52:10 > 0:52:12And it's now a decent kitchen, I think.
0:52:12 > 0:52:16I'm quite proud of it, anyway.
0:52:21 > 0:52:27'The bathroom has also benefitted from a major refurbishment and Brian hopes it will appeal to every age.'
0:52:28 > 0:52:34We decided to put in a shower-bath, because young people prefer showers rather than baths,
0:52:34 > 0:52:40but then if we get an elderly person, they prefer a bath, so it's a bath-shower.
0:52:40 > 0:52:44'The extra work the property needed meant that Brian had to put the work on hold,
0:52:44 > 0:52:47'as he and his wife Jo had a holiday planned in the States.'
0:52:49 > 0:52:54'But now he realises he'd set himself an unrealistic timescale.'
0:52:54 > 0:52:58I was a bit optimistic, I'm afraid. I think this has taught me a lesson.
0:52:58 > 0:53:04I'm not as strong as I used to be, not as fit, not as able. I'm pleased with the whole project now.
0:53:04 > 0:53:08But I wouldn't have tackled it if it'd known.
0:53:08 > 0:53:10# Hard work
0:53:10 > 0:53:14'Amazing. Full marks to 78-year-old Brian.
0:53:14 > 0:53:16'He puts many younger men to shame.
0:53:16 > 0:53:20'I've seen people half his age struggle to get a project finished.
0:53:20 > 0:53:24'So the timescale shifted. What about the budget?
0:53:24 > 0:53:26'Five grand now looks very ambitious.'
0:53:26 > 0:53:29We're a bit over £10,000.
0:53:29 > 0:53:33That's not taking my labour or time into it.
0:53:33 > 0:53:37I expected £5,000 for painting, decoration and cleaning.
0:53:37 > 0:53:40It's been new walls, not new wallpaper.
0:53:40 > 0:53:46As we spent so much on it, I don't think that the market is strong enough to resell.
0:53:46 > 0:53:51So it was back to the original idea that we'd do it up to let.
0:53:54 > 0:53:58'Time now to see how much rental income two local estate agents
0:53:58 > 0:54:01'estimate this house could generate for Brian.'
0:54:01 > 0:54:04The owner has done exactly what's needed for a property like this.
0:54:04 > 0:54:07There's very little more to be done.
0:54:07 > 0:54:10The decoration is neutral all the way through, white kitchen,
0:54:10 > 0:54:13bathroom's perfect with the shower-bath.
0:54:13 > 0:54:16The kitchen absolutely was the right choice to replace
0:54:16 > 0:54:20and it's modern and fresh and what buyers or tenants are looking for.
0:54:20 > 0:54:24The bathroom's very light, very airy. At the back of the property,
0:54:24 > 0:54:27it's always going to be dark, so it's nice to have an open feel.
0:54:27 > 0:54:30The garden still needs some work, but it's a nice size
0:54:30 > 0:54:34and it's facing the right way for the sun in the evenings.
0:54:34 > 0:54:37'Brian now thinks he'll go for the rental option.
0:54:37 > 0:54:41'So what income could he achieve for that?'
0:54:41 > 0:54:46If the property was available to rent, I'd expect it to achieve £600 to £625 per calendar month.
0:54:46 > 0:54:50This property should achieve in the region of £575 per calendar month.
0:54:52 > 0:55:00'So, 75 quid difference between the potential rental range of £575 to £650 per calendar month.
0:55:00 > 0:55:03'Is he happy with those figures?'
0:55:03 > 0:55:08Fine. I think the top one is a little bit high.
0:55:08 > 0:55:15I like to keep my rentals just below what's possible and keep my tenant.
0:55:16 > 0:55:22'What's the property now worth? Remember, Brian paid £97,000 at the auction
0:55:22 > 0:55:25'and his budget went a bit over £10,000,
0:55:25 > 0:55:29'so his total outlay is just over £107,000.'
0:55:29 > 0:55:34I'd be looking to sell this property between £110,000 and £115,000.
0:55:34 > 0:55:39If I were to market the property, I would expect it to achieve in the region of £115,000 to £118,000.
0:55:41 > 0:55:45'That range, from £110,000 to £118,000,
0:55:45 > 0:55:49'would provide him with a gross profit, before the usual selling expenses,
0:55:49 > 0:55:56'of between £3,000 and £11,000. Not a massive amount, but what does Brian think?'
0:55:56 > 0:56:01Well, fine, considering the market. It's a bit depressed at the moment.
0:56:01 > 0:56:06Not quite so good as when we set out on the project, but OK.
0:56:06 > 0:56:10# I just can't seem to get enough
0:56:12 > 0:56:15'So will Brian be doing up yet another property before he's 80?'
0:56:15 > 0:56:21I think it's unlikely. I think, if I did any more, I'd keep it strictly for investment.
0:56:21 > 0:56:26Find a place already done, if I wanted to do any more, but I've had enough, really.
0:56:26 > 0:56:31- 'But what will you do?'- Retirement.
0:56:31 > 0:56:33I should've done it years ago. HE LAUGHS
0:56:36 > 0:56:40We hope you've enjoyed watching Homes Under The Hammer and learnt some useful lessons.
0:56:40 > 0:56:43We'll see you next time for more hot properties
0:56:43 > 0:56:46and probably some that turn out to be a bit more lukewarm.
0:56:46 > 0:56:48- See you then.- Goodbye.- Goodbye.
0:56:50 > 0:56:54Subtitles by Red Bee Media Ltd
0:56:54 > 0:56:58E-mail subtitling@bbc.co.uk
0:56:58 > 0:56:58.