Episode 52 Homes Under the Hammer


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Episode 52

Martin Roberts and Lucy Alexander visit a bungalow in Devon, a development in Enfield and a property in Greater Manchester, and find out how much they sold for at auction.


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Even in today's challenging market,

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Lucy and I still like dabbling in property.

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We love to get a good deal,

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but in today's market it's not always that easy.

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But one way to stack the odds in your favour is visiting the auction.

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Now, buying under the hammer has become more and more popular.

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Millions of pounds of property are sold every month at auction.

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So here are the three properties

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that sold at auctions on today's show.

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In Devon, there's a bungalow

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that could open a few doors into the property market.

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How fantastic is that?

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A trip to Enfield in Middlesex leads me to an interesting development.

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I hope looks aren't everything.

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It's quite an eyesore!

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And in Greater Manchester, there are some things best left alone.

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When you knock it down, YOU don't. You have to get a specialist in.

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All these properties went to auction.

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We'll find out who bought them and what they paid

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when they went under the hammer.

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This is Plymstock in Devon,

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a pleasant suburb of Plymouth, a couple of miles from the city.

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Once more of a village, it expanded in the 1950s

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and appeals to home owners looking to take a step away from city life.

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It's a funny old mix, this road. 1940s and 1950s houses,

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semi-detached, detached and a bungalow. I'm delighted to say

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that's what I'm here to see.

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This is it. 170,000 quid was the guide price.

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Three bedrooms. Bungalows are wonderful. They have such scope.

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Let's see if this one is ripe for improvement.

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From the outside,

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this double-fronted bungalow appears quite imposing, if a tad tired.

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The windows look like they will need replacing, and I'd check the roof.

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The bungalow sits on a large plot

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even though it's hidden behind this wall,

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so all seems promising so far. Let's check inside.

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Nice little porchway there. I always like those.

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Through into the main corridor. Bedroom on that side.

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It's already feeling quite big. This is the main living room area.

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A huge great bay window.

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Nice floorboards you could strip back. High ceilings.

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It's got a very nice feel to it.

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It's tired and a little bit dated, but the structure's really good.

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And what's this?

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How fantastic is that?

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Sliding doors leading to what I guess was the dining room area.

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Judging by the state of the electrics, it'll need a rewire.

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It's a fairly old radiator, so cost in for some central heating.

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But other than that, it's got a really nice feel.

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'OK, it's a bit dated, but it's bright and spacious

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'and it won't take too much

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'to get it feeling fresh again.

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# Singing a song Old paint is peeling

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# This is that fresh, that fresh feeling... #

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'The bungalow has three bedrooms, with two big ones at the front.

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'Then a smaller one at the back

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'that could feel much bigger if you removed the cupboards.

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'The separate bathroom and loo could be knocked into one,

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'but the real layout challenge is at the back.'

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Through another sliding door, and it starts to go horribly wrong.

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This is the kitchen. It's absolutely tiny.

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Needs complete replacement.

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But before you do that, maybe think of a bigger scheme,

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because the good news is...

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that out here there's a very large space.

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It's like this fairly... I don't know, not exactly the best-made,

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and slightly temporary, kind of lean-to area.

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Extraordinarily hot today, it's the biggest utility I've ever seen.

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So what I would consider doing is making something more substantial,

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maybe putting a proper extension on.

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Then knocking down that wall for a really nice kitchen dining area.

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That makes a lot of sense and would dramatically affect this bungalow.

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'The potential here is to make

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a super kitchen/diner cum garden room.

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'There's loads of land at the back.

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'The garden is big and well-established.

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'I'm feeling rosy about this place.

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I reckon that as a refurbishment it could really bear fruit,

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'but there's one little issue you may need to sort out.'

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Well, parking around here is a bit of a problem,

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so it's great to have a drive and a garage,

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but as you can see you'd have to have a very narrow car

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to get in the gap between the house and the wall,

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so pretty much the garage is useless.

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What I would think about doing is bring the garage forward,

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build it here, you'd still have a drive.

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At the same time, you'd also create some more space for the rear garden.

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However, if you just use your garage to store junk, maybe leave it.

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'You need to think carefully,

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'as replacing the garage won't be cheap.

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'And it might not add significantly to the future value of the property.

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'We invited along a local estate agent to hear her thoughts

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'on this detached Devon bungalow.'

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My first impression is, it's a 1930s property.

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It's spacious. When it's done up to a nice high standard,

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it'll make a lovely family home.

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Or even for a retired couple that like space on the level.

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The property had an auction guide price of £170,000.

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What could it be worth once refurbished?

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I would look in the region

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of £290,000 to £295,000.

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Well, if the bungalow sold near the guide price of £170,000,

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it sounds like there's considerable potential profit,

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even allowing for the refurbishment costs.

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This bungalow has the magic combination of space,

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scope for improvement and super location.

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If you're careful with what you spend, there's money to be made.

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Let's see who went for it.

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Lot 69. A good-sized three-bed, detached, double-fronted bungalow.

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Who kicks off with 170?

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165? 160.

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162. 164.

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164. 166. At 166.

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168. 169.

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170. 171.

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172.

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173. 174.

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175. 176. 177.

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178. 179.

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80. 81.

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82. 83. 84.

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85. 86.

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86. Handbrake for a moment. 186.

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And 7. And 8.

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188 and a half. A new face. 189. 189 and a half.

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190.

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190 and a half. 191.

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191 and a half. 192.

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92 and a half. 93. And a half.

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And 4. And a half.

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And 5. 195.

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At 195 once.

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At 195 twice. At 195.

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Third and last time. Here it is. At 195...and gone.

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Sir, madam, well done.

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That last bid of £195,000 was made by Richard.

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He was at the auction with his wife, Ida,

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and Simon, his daughter's partner.

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Richard's retired. Simon used to work in kitchen and bathroom fitting

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and they're part of a property developing team.

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I met up with them at the bungalow to hear about their plans.

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Richard, Simon, lovely to meet you. Congratulations.

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-I like this bungalow.

-So do we!

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Tell me why you wanted to buy it.

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There was something nice about it. It's light, airy, clean.

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It seemed like a good investment.

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-Big.

-Mmm, very big.

-The numbers stacked up.

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That's primarily what I'm interested in and Simon does the work.

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Let me get the personal relationship.

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-This is your son-in-law.

-Yes.

-Well, will be.

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-Will be.

-Oh, great.

-I proposed to his daughter on Monday.

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-You proposed to her on Monday?!

-Yep.

-Did she say yes?

-Of course!

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Well, congratulations! When's the wedding going to be?

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We're expecting a child in September,

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so we'll give it another year.

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'This will be Simon's third child,

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so he's going to be busy at home and with this house.'

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# I am what I am, am what I am

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# A family man... #

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-So what are you going to do to this place?

-Well, a new roof,

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rewire, replumb, replaster right the way through.

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We're going to jiggle the rooms,

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utilise more space. We're bringing a fourth bedroom in.

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To the rear of the property,

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the conservatory area, we'll put a proper roof on it

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and make it into a luxury kitchen/diner area,

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hopefully going on to put a reasonable-sized conservatory

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onto the back of the property.

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Basically, it will be totally renovated from top to bottom.

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Richard's wife, Ida, and Simon's fiancee, Laura, will oversee

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the interior decoration.

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They've decided to relocate the garage to the side of the property

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and enlarge it to take two cars.

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Richard reckons that should cost

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about £900 to £1,000, but what's the bigger financial picture?

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Simon hopefully won't spend any more than about 35.

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And then we'll probably spend another 11 grand on legal,

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so that includes estate agents,

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solicitors, stamp duty - that's already been paid,

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which people tend to forget. That's nearly two grand.

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And, hopefully, there will be a profit left over at the end

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to cover Simon's advance drawings,

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my interest, and we'll share what's left.

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Listen, congratulations, and good luck. We'll see how you get on.

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-Thank you very much.

-Thank you.

-And good luck with the wedding!

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# I am what I am, am what I am

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# A family man... #

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So exciting times ahead -

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a new project, a new baby and a marriage.

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Certainly, the team have got themselves a really nice property,

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but will Simon manage to keep to Richard's very strict budgets?

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Find out later in the show.

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Today I'm in Enfield, Middlesex,

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a place that has quite a claim to fame.

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Not only has it a well-established market trading for 700 years,

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it's also home to the first cash dispenser machine,

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installed here over 40 years ago.

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The inventor had his "Eureka!" moment while having a bath.

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Talking of getting soaked...

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# Who'll stop the rain? #

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Well, today in Enfield

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I haven't chosen the best weather to view auction lots.

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But I'm excited. I'm here to see

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a building plot that had a guide of just £100,000.

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And it's behind here.

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So here's the land.

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It measures over 0.2 of an acre, it's narrow and very long,

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but this industrial unit really sits quite closely,

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and it's quite an eyesore.

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Well, not great. The industrial unit is a bit of an ugly neighbour.

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But the other side of this extensive plot is residential,

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so while you can't have it all,

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for the guide price of 100 grand it represents extremely good value.

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So what can you build on this plot? Well, it comes with planning

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for the erection of a three-storey block of six flats -

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one one-bed and five two-beds.

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Parking has been allotted, too,

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which is great, so all you need to do is work out the build costs

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and the sale price or annual rental yield

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and see if it's a viable project.

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As usual, it all comes down to cost, especially on new-build projects.

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The margins can be healthy if all goes to plan, but as we know,

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any project that promises huge returns comes with added risks.

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So beware, and make sure your sums are right.

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So what's great about new-build properties?

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They have the added benefit of an NHBC warranty -

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the National House Builder Council warranty.

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It means your new home will have been built

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to specified standards of construction.

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A real safety net. You also get a boiler guarantee and double glazing.

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# For my brand-new house and my brand-new bride... #

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So with the outline plans passed

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to build a brand-new, three-storey block of six flats,

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an investor who knows what they're doing could do really well here.

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But with projects like this, the devil is often in the detail.

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It's always good to have a look at a piece of paper with some plans on,

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so you can visualise it.

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I've got some here. You see the proposed front elevation

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so you can actually see you've got five two-bed flats here

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and one one-bed flat.

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You've got the proposed side elevation. This was worrying me.

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Obviously, because of its location, it's right next to a car park!

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But the good news with that is only three windows overlook it,

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so it's probably a bathroom or a bedroom. So not too bad.

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And the side elevation here is going to face all the houses on that side.

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So it's quite good just to visualise what this is going to look like.

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Remember, these are outline plans,

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so you'd have to submit a further application

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to obtain full planning before starting any work here.

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Proportions look good in the two-beds,

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and the one-bed flat is perfectly adequate.

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There's also a good deal of parking

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in the plans, and that's a real marketing tool in a populated area.

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The industrial unit aside, this is an established residential area.

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While I'm sure the local wildlife will miss this,

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the neighbouring properties will be delighted

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to see this bit of scrubland developed.

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So with the plot of land guided at £100,000, it's time to find out

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what a local estate agent makes of the potential here.

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It's a nice little plot with good access.

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It's at the right end of the street here,

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with access to the road.

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The mixture of commercial premises next door is not great,

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but we're right next to the residential stuff, too.

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The site could make a good little investment,

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but how would the figures stack up?

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With five two-beds and one one-bed flat planned,

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how much could they sell for?

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I would imagine the two-beds would be around the £170,000 ballpark.

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The one-bed, about £130,000.

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The figures could add up to a £980,000 return,

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so getting this site and the building costs right is important.

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But how might rental income look?

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There's two markets here.

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The private market won't pay as much

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as the local authority's home finders scheme.

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They're paying as much as £975 per calendar month. Quite a lot.

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Otherwise, they would normally be around £850 per calendar month.

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If you stick to the plans,

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keep build costs low and rent this out, the yield is healthy.

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If you go over-budget and fail to attract tenants offering high rents,

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this project isn't so attractive.

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Someone fancied it, though. Let's find out who as we go to auction.

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Lot 110. Enfield, nice site there. What'll you bid me?

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Somebody bid me 80,000. Thank you. I went too low.

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80,000. 82 and a half? 82 and a half, yep.

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85. 87 and a half.

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And 90. The gentleman... 100 with you. Wearing the hat.

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102 and a half, sir. 105.

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107 and a half. 110. 112 and a half.

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115. And 17 and a half.

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120, sir?

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120, the gentleman on the second row with the pen. 122 and a half.

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25. 27 and a half. 130. Yep.

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32 and a half. 35.

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This Enfield lot generated a lot of interest,

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so that 100 grand guide price was left far behind. We pick it up

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when the bidding had reached

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-an amazing £250,000.

-For the first time at 250. Second time.

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Fresh place, 255. Where did you come from? 260, sir. 265.

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270. 275?

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Still with you at 270. 275 anywhere else?

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275. 280, sir?

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280. 285? 285.

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290. 295?

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No? Sure this time? 290, on my right. Sitting down, smiling.

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For the first time at 290.

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Second time at 290. Third and final time at £290,000.

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I think we're done this time. Sold to you, sir, at 290,000.

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The successful bidder on the day who got the lot for £290,000 was David.

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He runs a local skip hire company,

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so plenty of contacts in the building trade

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who he hopes will give him a helping hand on this. I met him

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back at the site to find out more.

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Dave, it's stopped raining! It's great standing on your land.

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Let's talk about why you wanted to buy this.

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Basically, I've got some money tied up, not earning much money.

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The opportunity came, I saw the plot advertised on the internet,

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went to the auction

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and thought it a better investment

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for the money I've got tied up in the bank with low interest rates.

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-It comes with outline planning permission.

-Yeah.

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Is that what interested you? It was ready?

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Definitely. I needed something that was ready to go.

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I didn't want anything risky without permission.

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The fact we've got outline planning permission on it makes it easy.

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To build six flats needs an awful lot of money to put up front.

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Have you thought about how much?

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Well, we thought about £300,000.

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The architect said £350,000 to £400,000.

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We had the flats valued before we went to auction

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and the total project is about £1 million,

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or just under. That's what we valued it at. So there is a profit in it.

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What do you hope to walk away with?

0:20:380:20:40

Hopefully, we should make £250,000 to £300,000.

0:20:400:20:43

If it all goes according to plan,

0:20:430:20:46

Dave could be looking at a sizeable profit on this investment.

0:20:460:20:50

Ugly as the site is, it could be the basis for an attractive return.

0:20:500:20:56

# Beautiful wasteland... #

0:20:580:21:03

So do you have much experience

0:21:050:21:07

of building six flats? Quite a tall order, isn't it?

0:21:070:21:11

No, I haven't any experience of building six flats,

0:21:110:21:15

but I know lots of builders.

0:21:150:21:17

Owning a local skip hire company, we've 150 builders on our books.

0:21:170:21:22

So it shouldn't be a problem finding a builder to do it.

0:21:220:21:27

Have you ever done anything like this in the past?

0:21:270:21:30

Well, I've done flat conversion work before.

0:21:300:21:33

Some good, some bad.

0:21:330:21:35

The first project I did,

0:21:350:21:37

we were on a rising market and couldn't go wrong.

0:21:370:21:41

Everything made more profit than we thought we would.

0:21:410:21:45

Then the second project we did was on a falling market.

0:21:450:21:49

And that was one that I got my fingers burnt a little bit on.

0:21:490:21:54

So, we win some and lose some.

0:21:540:21:56

Time, as they say, is money,

0:21:560:21:58

and Dave's itching to get this investment paying its way.

0:21:580:22:02

With that budget of 300 grand, he won't let the grass grow

0:22:020:22:06

and is keen to get started as soon as possible.

0:22:060:22:10

When will the project be completed?

0:22:100:22:13

I think probably it's going to be a year to do the whole thing,

0:22:130:22:17

from getting the detailed plans passed from the council

0:22:170:22:21

to getting it finished.

0:22:210:22:23

-Probably about a year.

-Day to day,

0:22:230:22:25

how will you work it into your life? I'm sure you're really busy.

0:22:250:22:30

I am busy. We're just going to... I'll have a builder to site manage it

0:22:300:22:35

and I'll hopefully only come down from time to time.

0:22:350:22:39

When will you kick back and enjoy the fruits of your lovely hard work?

0:22:390:22:43

I don't really know. I've got enough time to do the things I like doing -

0:22:430:22:48

playing golf, a bit of sailing.

0:22:480:22:50

Things that I do as hobbies.

0:22:500:22:52

I've still got plenty of time. I don't want to retire yet.

0:22:520:22:56

-Dave, it's been so lovely talking to you. Good luck.

-Thank you.

0:22:560:23:01

How many people can say they know 150 builders? Well, Dave can!

0:23:010:23:05

His background and his connections should make this a breeze,

0:23:050:23:10

but we all know that new-builds throw up their own problems.

0:23:100:23:14

Find out how he gets on later.

0:23:140:23:16

Coming up, in Greater Manchester,

0:23:180:23:20

you'd need to study this house very carefully before buying.

0:23:200:23:24

It depends what you'll use it for.

0:23:240:23:27

In Enfield, it's back to the drawing board for Dave.

0:23:280:23:32

If anything came up, a similar project, I'd probably be interested.

0:23:320:23:37

But first, we see

0:23:390:23:40

how Richard and Simon's bungalow project in Devon went.

0:23:400:23:45

The outcome is absolutely brilliant.

0:23:450:23:47

Now back to Plymstock in Devon,

0:23:500:23:52

where earlier this three-bedroom detached bungalow was bought for £195,000 by Richard, on the left,

0:23:520:24:00

and his daughter's partner, Simon. Richard was looking after the finances,

0:24:000:24:06

and Simon, a kitchen and bathroom fitter, was doing most of the work.

0:24:060:24:11

He was engaged in more ways than one.

0:24:110:24:14

-This is your son-in-law?

-Yes.

0:24:140:24:17

-Married to your daughter.

-Will be.

-Will be.

-Oh, great.

-I proposed to her on Monday.

0:24:170:24:24

-You proposed to her on Monday?!

-Yeah.

-Did she say yes?

-Of course!

0:24:240:24:29

Well, it's now a year later, and we met up again with Richard and Simon back at the property.

0:24:300:24:37

There's been quite a transformation.

0:24:370:24:39

The drab, grey bungalow has been re-rendered in a brilliant white and cream.

0:24:420:24:47

And a new garage has been built in line with the front of the house.

0:24:490:24:54

At the back, there were so many trees you'd struggle to see the end of the garden.

0:24:540:24:59

Well, not any more.

0:24:590:25:01

The dilapidated old conservatory has been completely rebuilt.

0:25:010:25:06

It's now a wonderful L-shaped kitchen/diner, equipped to a very high specification.

0:25:060:25:13

And the layout's been totally changed, as Simon explains.

0:25:160:25:21

The best thing was moving the entrance, which was here.

0:25:220:25:26

We've gained more space by opening it right up and continuing round in an L-shape.

0:25:260:25:32

It gives the illusion of space and, again, contacting the old dining area.

0:25:320:25:38

The outcome of it is brilliant. The room's great.

0:25:380:25:42

It's family, young, old. Suits everyone.

0:25:420:25:46

And no expense has been spared on the quality of fittings in the refitted bathroom.

0:25:470:25:53

Simon's years of experience of bathroom and kitchen fitting are clear to see.

0:25:570:26:04

At the front of the bungalow, the large bay-fronted living room has been decorated

0:26:040:26:10

and a feature fireplace installed.

0:26:100:26:13

And the former dining room reached through the glass doors is now a bedroom,

0:26:130:26:18

taking the total to four.

0:26:180:26:20

The large bedroom at the front now has an added feature as well.

0:26:200:26:25

This is the master bedroom.

0:26:270:26:29

We've managed to add an en suite by taking space from the rear bedroom.

0:26:290:26:35

And we've obviously taken some space from this one, which we hope will add some value to the property.

0:26:350:26:42

The bungalow had to be completely rewired and the plumbing upgraded.

0:26:420:26:47

It took about nine months to get it to this stunning condition.

0:26:470:26:52

Whilst Richard's been watching the purse strings, Simon's done the majority of the work.

0:26:520:26:58

He became a dad for the third time to baby Lauren soon after they started here.

0:26:580:27:04

Along with his other two children, Jacob and Coby, how did Simon cope with the new baby?

0:27:040:27:11

Baby Lauren's been very good. A few late nights, but I get the smiles and I'm quite happy.

0:27:110:27:19

So the new arrival didn't stop Simon cracking on with the work, but it was slowed down by the harsh winter.

0:27:190:27:25

To stay on track they decided to get extra help.

0:27:250:27:29

We brought somebody in to help Simon. We actually budgeted for part of that,

0:27:290:27:35

but we realised with the timeframe we wanted

0:27:350:27:38

it was better to bring somebody in and do the plastering and do all the painting.

0:27:380:27:44

An added expense, but they both thought it was worthwhile.

0:27:440:27:48

Outside, there were major problems with the drains. How did they come to light?

0:27:480:27:54

Drain issues. Hmm. Not very good. Basically, we found that the drains were backing up.

0:27:540:27:59

We found trees growing into part of the drains, parts had collapsed.

0:27:590:28:04

Eventually, we got over it, but it's time, hassle, money.

0:28:040:28:08

So some money went down the drain, but did it wash away their budget?

0:28:080:28:13

My original budget was... or Simon and my original budget was actually £35,000.

0:28:130:28:19

We eventually ended up spending £47,000, so we were actually £12,000 over budget.

0:28:190:28:25

But primarily the main cost was an extra £3,000 on the roof

0:28:250:28:31

and we spent £7,000 on labour.

0:28:310:28:33

Time to see what two local estate agents think

0:28:330:28:37

of this bungalow that Richard and Simon have transformed.

0:28:370:28:41

When I walked through the door for the second time, I was flabbergasted.

0:28:420:28:48

It just looks so much bigger -

0:28:480:28:50

the extension to the dining room, or on to the garden with the decking.

0:28:500:28:54

What stands out for me, apart from the incredible finish and fittings,

0:28:540:29:00

is the sizeable kitchen and breakfast room, a great family area.

0:29:000:29:04

The garden was so overgrown. You've now got a child-friendly property.

0:29:040:29:08

You've got a level property for older clients. It's fantastic.

0:29:080:29:13

Simon and Richard have no intention of renting it out,

0:29:130:29:17

so what could it be worth if sold?

0:29:170:29:19

They paid £195,000 at the auction and their budget expanded to 47,000,

0:29:190:29:25

taking their total to 242 grand.

0:29:250:29:28

I feel we could put this on the market

0:29:290:29:32

for in the region of £300,000 to £320,000.

0:29:320:29:35

You could market this property in the region of £300,000 to £315,000.

0:29:350:29:39

That valuation range could generate a gross profit

0:29:390:29:43

before the usual selling expenses

0:29:430:29:45

of £58,000 to £78,000,

0:29:450:29:48

so what do they think of that?

0:29:480:29:50

I think 320 sounds very good.

0:29:520:29:54

We always want a bit more, don't we?

0:29:540:29:58

This looks like a dream team,

0:29:580:30:01

with Richard's financial expertise

0:30:010:30:03

and Simon's unmistakable skills on show throughout the property.

0:30:030:30:07

It's a credit to Simon. I haven't been doing the work.

0:30:090:30:12

Simon's been doing it and it's an incredible job.

0:30:120:30:15

The finish and the workmanship is good.

0:30:150:30:18

It could have been a little bit quicker,

0:30:180:30:21

but that's not the way these projects happen.

0:30:210:30:24

We'd like it to be done quicker and make more money,

0:30:240:30:27

but it's a good project.

0:30:270:30:29

I'm about three miles outside Manchester city centre

0:30:320:30:36

in an area known as Fallowfield.

0:30:360:30:38

During the Industrial Revolution,

0:30:380:30:41

this was the place that the well-to-do came to escape the smog

0:30:410:30:45

and general noise of the industrial heart of the city centre.

0:30:450:30:49

Nowadays, it's still a very popular place to live.

0:30:490:30:53

As a result, some great architecture

0:30:530:30:55

and grand residential housing was built here.

0:30:550:30:58

The other main attraction a short walk away is Manchester University

0:30:580:31:02

and you'll know just what that can mean.

0:31:020:31:06

You don't need to be a degree student to work out

0:31:060:31:09

that with the thousands of students

0:31:090:31:11

starting at Manchester colleges and universities every year,

0:31:110:31:15

there is going to be a huge demand for accommodation,

0:31:150:31:19

and the property I'm here to see could be perfect.

0:31:190:31:22

It's a three-bed semi-detached with a guide price of 140,000 quid.

0:31:220:31:26

Let's take a look inside.

0:31:260:31:29

A large number of properties round here are buy-to-let

0:31:290:31:32

for the student rental market

0:31:320:31:34

and the current student population is growing.

0:31:340:31:37

Is this the sort of place modern scholars are after?

0:31:370:31:41

Through the front door and what have we got? A decent-sized entrance.

0:31:410:31:45

Stairs up to your bedrooms there.

0:31:450:31:48

On the right-hand side, living room,

0:31:480:31:50

but if you rent this place out, that could be another bedroom

0:31:500:31:54

and if you're about maximising your profit and your income,

0:31:540:31:58

the more bedrooms, the better.

0:31:580:32:00

You could convert the rear sitting room into a bedroom too,

0:32:000:32:04

because the kitchen isn't a bad size.

0:32:040:32:07

It's got this bit which was the original part of the house,

0:32:070:32:10

then on the back there's a flat-roof extension, which isn't ideal,

0:32:100:32:15

but it means that the kitchen itself could be a kitchen/dining area.

0:32:150:32:19

It depends on what you're going to use the house for,

0:32:190:32:23

but in terms of a start, not at all bad.

0:32:230:32:25

The layout here really doesn't work,

0:32:250:32:28

but you've got the space to change it.

0:32:280:32:30

I'd be tempted to put the units at the far end to overlook the garden,

0:32:300:32:34

leaving this part as a dining area or breakfast bar,

0:32:340:32:38

but so far, there are no major complaints, really.

0:32:380:32:41

One thing I really like about this property

0:32:410:32:44

is that you do get a sense of space -

0:32:440:32:47

lots of light coming in to the stairway area here

0:32:470:32:50

and there's this landing area.

0:32:500:32:52

It's probably not the best use of space,

0:32:520:32:54

but it gives the house a nice feel.

0:32:540:32:57

Up here, a bathroom. It's not huge, but it's OK.

0:32:570:33:00

Small bedroom at the back there, medium-sized bedroom next to it,

0:33:000:33:05

then your third bedroom which,

0:33:050:33:07

thankfully, is a good size at the front of the property here.

0:33:070:33:11

Now, obviously, everything needs to be re-decorated for sure

0:33:110:33:16

and one thing you are going to do is take off these polystyrene tiles

0:33:160:33:20

because they are a fire hazard.

0:33:200:33:23

But in terms of space, it's a good-sized room and lettability,

0:33:230:33:28

well, definitely a big plus.

0:33:280:33:30

It's not just in here those tiles will need to come down.

0:33:300:33:34

Every room has them. Let's just hope the plaster above stays intact.

0:33:340:33:38

# I'm gonna stick like glue

0:33:380:33:41

# Stick because I'm stuck on you...

0:33:410:33:46

But overall, refurbish the rooms, modernise the bathroom

0:33:460:33:50

and this property might be ready to go.

0:33:500:33:53

At the rear of the property, you've got a really good-sized garden.

0:33:530:33:57

If you rented this out to students,

0:33:570:33:59

this is a bad thing to have because they won't cut the grass!

0:33:590:34:03

However, as a family home, a really good thing to have.

0:34:030:34:07

It depends what you use the house for.

0:34:070:34:09

One thing I've spotted at the back is this old garage.

0:34:090:34:13

It looks fairly innocuous, although a bit dodgy round the edges.

0:34:130:34:18

The bad news, though, it's asbestos, which means when you knock it down,

0:34:180:34:23

you have to get a specialist in to do it.

0:34:230:34:26

Not only do you have to get it removed carefully

0:34:290:34:32

by a licensed contractor,

0:34:320:34:34

disposal of the waste can only be done at a licensed disposal site.

0:34:340:34:39

It can all start to add up,

0:34:390:34:40

so it's important to include that in your budget.

0:34:400:34:44

So remembering that the house was guided at £140,000,

0:34:440:34:49

it's time for a local estate agent to tell us what he thinks of it.

0:34:490:34:54

First impressions are that it's dated, it needs an overhaul,

0:34:570:35:01

but it's a good size, good-sized rooms,

0:35:010:35:04

nice extension on the back of the kitchen, nice plot.

0:35:040:35:08

With a bit of investment, it'll be a really good property.

0:35:080:35:11

But how would investment figures look?

0:35:110:35:15

Guided at 140 grand, would there be a good return on a re-sale?

0:35:150:35:19

Once the property has been fully refurbished,

0:35:190:35:22

I would expect it to sell for circa £190,000.

0:35:220:35:25

How would the rentals look

0:35:250:35:26

both for the family market and the growing student population?

0:35:260:35:31

If we were to rent this property to a family today,

0:35:310:35:34

I'd expect to get £750 to £800 per calendar month.

0:35:340:35:37

If it was offered for the student market,

0:35:370:35:39

I'd expect the property

0:35:390:35:41

to achieve somewhere in the region of £1,000 per month,

0:35:410:35:44

based on four people sharing at £250 a month each.

0:35:440:35:48

Well, as a family home or a student let,

0:35:500:35:53

I don't think you can go far wrong with this place.

0:35:530:35:57

And at that guide price of 140,000 quid,

0:35:570:36:00

I'm sure it generated a lot of interest

0:36:000:36:03

when it went under the hammer.

0:36:030:36:05

Lot 9, three-bedroomed, semi-detached house. Where shall we start?

0:36:070:36:11

120? Let's be reasonable. 120? 120 I am bid. At 120 in the room.

0:36:110:36:17

120 I have, then. At 125? At 125 bid. At 125,000. New bidder at 125.

0:36:170:36:22

Do I see 130? 130 bid. 135?

0:36:220:36:24

It's against 135. At 135.

0:36:240:36:27

Do I see 140?

0:36:270:36:29

140. 140 I have now. Do I see 145 in the room?

0:36:290:36:33

145 bid, new bid. 145. Do I see 150?

0:36:330:36:36

Sorry? 150. 150 I have, new bid.

0:36:360:36:40

At 155 now it's against. At 152 and a half. 152 and a half. 155.

0:36:400:36:45

At £155,000. Do I see 156? At 156, quick.

0:36:450:36:50

157. At 157. 158.

0:36:500:36:54

At 158,000 on the phone. 159. At 159. 160?

0:36:540:36:58

160. 161? Could be the last bid.

0:36:580:37:01

At 161, it's against on the phone. Paddle 324 at 161.

0:37:010:37:06

At 161 for the first time...

0:37:060:37:08

At 161 for the second time... Are we all done at 161,000?

0:37:080:37:13

That's yours - paddle number 324.

0:37:130:37:16

'That successful bid of 161,000

0:37:180:37:21

'was made by Richard and his wife Margit.

0:37:210:37:24

'Richard is a retired chartered surveyor

0:37:240:37:27

'and this will be the couple's first residential development.

0:37:270:37:31

'I met them to find out more.'

0:37:310:37:34

-Margit, Richard, lovely to meet you both.

-Hello.

-Congratulations.

0:37:340:37:38

-Tell me why you wanted to buy this place.

-It's the area, really.

0:37:380:37:42

We're wanting to have a house for student lets.

0:37:420:37:47

-Ah.

-And it's a very, very good student area.

0:37:470:37:50

And the size of house - it's not too big, but not too tiny either.

0:37:500:37:55

With a good bit of work on it, it'll be perfect.

0:37:550:37:58

So is student lets something you've done before?

0:37:580:38:02

No. No, we haven't.

0:38:020:38:04

Nothing done in residential at all.

0:38:040:38:06

Richard has had a commercial property for quite a while

0:38:060:38:10

which has been let out,

0:38:100:38:11

but this is something very new.

0:38:110:38:13

We were just looking for a different way of expanding.

0:38:130:38:17

Having a commercial property in this recession,

0:38:170:38:20

quite a few of them are empty for a while,

0:38:200:38:23

so we thought, to add to our portfolio, it should be residential.

0:38:230:38:27

We come from this area,

0:38:270:38:28

so we know there's lots of students in Manchester,

0:38:280:38:32

so it was the way to go.

0:38:320:38:33

-Do you live quite close?

-No, we live in Holyhead.

0:38:330:38:36

-Holyhead, Anglesey?

-Yes.

-Right.

0:38:360:38:39

How is that going to work

0:38:390:38:41

in terms of managing the property and also doing it up?

0:38:410:38:44

Well, our son is just leaving the navy

0:38:440:38:47

and going back into residential lettings

0:38:470:38:50

with his old company and he'll be doing student lettings,

0:38:500:38:54

so he'll be managing it, and we've got a good builder lined up.

0:38:540:38:58

We'll come backwards and forwards to monitor things,

0:38:580:39:02

but we can leave him to it

0:39:020:39:03

and everything will be done and dusted.

0:39:030:39:06

'Not only an investment for Richard and Margit,

0:39:060:39:09

'but a chance for their son to get in on the act.

0:39:090:39:12

'With the three bedrooms upstairs,

0:39:120:39:14

'they plan to use one of the ground floor reception rooms as a double,

0:39:140:39:19

'so the house will be a four-bed rental,

0:39:190:39:22

'hopefully generating £80 per week per room, bills not included.

0:39:220:39:26

'But what sort of accommodation can the students expect in return?'

0:39:260:39:31

Well, the obvious, as you can see,

0:39:310:39:33

new bathroom, new kitchen, completely new decorating.

0:39:330:39:37

All the walls and ceilings will be stripped,

0:39:370:39:40

so there'll be quite a bit of re-plastering.

0:39:400:39:43

At that point, we will re-wire the property

0:39:430:39:46

and new flooring, new decorating, basically, everything new.

0:39:460:39:50

What budget have you got for the work?

0:39:500:39:52

Realistically, we're looking at about 25,000.

0:39:520:39:55

-Oh, wow!

-For all of the work.

-That's pretty healthy.

0:39:550:39:59

Well, it is because, you know, re-wiring, kitchen and bathroom,

0:39:590:40:04

but the polystyrene tiles, they're on every ceiling.

0:40:040:40:09

That's going to damage the plasterwork, obviously,

0:40:090:40:12

with the re-wiring chasing out through the plaster,

0:40:120:40:16

so we've built in complete replastering.

0:40:160:40:19

'Many people underestimate their budget when renovating a property,

0:40:190:40:24

'so Richard and Margit are adopting a sensible approach.

0:40:240:40:28

'But Richard has also discovered

0:40:280:40:30

'that the removal of the chimney breast

0:40:300:40:33

'in the front room and main bedroom

0:40:330:40:36

'has left the chimney stack unsupported,

0:40:360:40:38

'so that will need to be made safe

0:40:380:40:40

'and making this investment safe is important

0:40:400:40:43

'because it's not Richard and Margit's money at stake here.'

0:40:430:40:47

It's my mum and dad.

0:40:480:40:50

They sold a house and moved to a smaller property.

0:40:500:40:53

And so we're investing the money for them to get the income.

0:40:530:40:58

We're managing it for them

0:40:580:41:00

and then taking a small share for our management expertise.

0:41:000:41:04

-Oh, wow!

-And my dad and I have been in business as partners

0:41:040:41:08

for years before he retired in 1990.

0:41:080:41:12

-Doing what?

-We're chartered surveyors and auctioneers.

0:41:120:41:16

-You definitely know what you're doing, then.

-We hope so.

-We hope so.

0:41:160:41:21

And I detect an accent that isn't Manchester from you.

0:41:210:41:25

Well, I have been told that I've got an Austrian accent

0:41:250:41:29

with a Mancunian slant to it.

0:41:290:41:31

I lived in Manchester for many years but originally, I come from Austria.

0:41:310:41:35

-Whereabouts?

-A place called Linz, an hour and a half from Salzburg,

0:41:350:41:39

between Salzburg and Vienna.

0:41:390:41:41

-What brought you to the UK?

-I came a long time ago to study English

0:41:410:41:45

and I came as an au pair girl.

0:41:450:41:47

-Oh, wow!

-In 1977 I think it was, yeah.

0:41:470:41:50

-And how long have you two been together?

-Not that long.

0:41:500:41:53

It's longer than we think!

0:41:530:41:55

We've been together for 12 years?

0:41:550:41:57

-1998.

-You shouldn't ask questions like that, because I'll forget.

0:41:570:42:02

-1998, it was.

-I'll get rapped over the knuckles.

-12 years, yeah.

0:42:020:42:06

-Congratulations.

-Thank you.

0:42:060:42:08

-Thank you.

-We'll look forward to seeing how you get on.

0:42:080:42:12

We'll look forward to showing you.

0:42:120:42:14

It seems that Richard and Margit

0:42:140:42:16

have certainly got things fairly well sussed

0:42:160:42:19

and it's good to hear that they've allowed a realistic budget.

0:42:190:42:23

However, they are managing the project from quite a way away

0:42:230:42:27

and the clock is ticking when it comes to getting those students in

0:42:270:42:31

before the start of the next term.

0:42:310:42:33

So how are they going to get on? You can find out later in the show.

0:42:330:42:38

It's been a while since we visited those properties.

0:42:400:42:44

There should have been work done, but you can't bank on it.

0:42:440:42:47

All sorts of problems can arise,

0:42:470:42:49

so what have our buyers had to deal with? Let's find out.

0:42:490:42:53

We return to Enfield in Middlesex

0:42:550:42:57

to catch up on what appeared to be little more than some wasteland

0:42:570:43:01

between residential housing and an industrial estate,

0:43:010:43:05

but it was so much more than that,

0:43:050:43:07

as it had the all-important asset of outline planning permission

0:43:070:43:11

to build six flats in a three-storey block,

0:43:110:43:14

so for skip hire company owner Dave,

0:43:140:43:16

it seemed too good an opportunity to miss.

0:43:160:43:19

He paid 290,000 for it

0:43:190:43:21

and it was time for Dave to call in a few favours.

0:43:210:43:25

Do you have much experience of building six flats?

0:43:270:43:31

It's quite a tall order.

0:43:310:43:32

No, I haven't any experience of building six flats at the moment,

0:43:320:43:36

but I know lots of builders.

0:43:360:43:38

Owning a local skip hire company,

0:43:380:43:41

we've got about 150 builders on our books,

0:43:410:43:44

so I should find a builder to do it.

0:43:440:43:47

So, armed with a £400,000 budget and his pool of builders to call on,

0:43:470:43:52

Dave set about the task of turning the wasteland

0:43:520:43:56

into what he hoped would be a site worth over £1 million.

0:43:560:44:00

So have things worked out as he hoped? 17 months on, we're back.

0:44:000:44:04

Wow! It certainly seems promising.

0:44:060:44:09

The building's up and it looks almost finished.

0:44:120:44:16

There's clearly some landscaping to do, but all in all,

0:44:160:44:20

from the outside, it's almost job done.

0:44:200:44:22

And inside, well, judging by the stairs, it still has a bit to go,

0:44:220:44:28

but what have we got here?

0:44:280:44:30

Well, we've built six flats.

0:44:300:44:33

Five of them are two-bed and one one-bed.

0:44:330:44:36

On the ground floor at the front, there's the one-bed flat.

0:44:360:44:40

It looks nice and spacious, if a little lacking in fixtures

0:44:400:44:44

in what will be the kitchen/dining area.

0:44:440:44:46

At the back on the ground floor is a two-bed flat,

0:44:460:44:50

still with a bit of finishing off to do,

0:44:500:44:53

but the kitchen has been installed.

0:44:530:44:55

There are a further two two-bed flats on the middle second floor,

0:44:550:44:59

also still a few weeks away from being ready for the re-sale market.

0:44:590:45:04

So it looks like it is all going to plan.

0:45:040:45:08

We basically built them

0:45:110:45:12

to the plans that we had when we purchased the land,

0:45:120:45:16

so we've just basically got the detailed planning and built those.

0:45:160:45:21

So the final two two-bed flats

0:45:210:45:24

are on the top floor and they're just about finished.

0:45:240:45:28

This is the top floor flat. It's a two-bedroom flat.

0:45:320:45:37

We've built a lovely feature window there,

0:45:370:45:39

a very large dining room area to this side.

0:45:390:45:43

We've got a modern kitchen here.

0:45:430:45:45

It's got a built-in fridge, a built-in freezer,

0:45:450:45:49

a built-in washing machine

0:45:490:45:52

and a light, modern kitchen.

0:45:520:45:55

Dave had hoped that it would be done in a year, but it took a lot longer

0:45:560:46:00

to get the utilities in.

0:46:000:46:02

That slowed the project down, though it's all gone pretty well.

0:46:020:46:06

With Dave having his own skip hire business to run, how did he cope

0:46:060:46:11

with overseeing a large project?

0:46:110:46:13

I wasn't going to handle the project myself,

0:46:130:46:16

so I decided to look around

0:46:160:46:17

for a good builder I could sub-contract it out to.

0:46:170:46:21

I found one and he's handled the whole thing,

0:46:210:46:24

including employing all the sub-contractors,

0:46:240:46:27

handling the planning permission and everything,

0:46:270:46:30

so I haven't been hands-on.

0:46:300:46:32

I've only really come along to see

0:46:320:46:34

how it's been going and supplied the money to do the build.

0:46:340:46:38

That amount of money was originally set at £400,000,

0:46:380:46:41

so has he stuck to that

0:46:410:46:43

or did he need to dig deeper to fund it all?

0:46:430:46:46

We're a little bit over budget. I think we're probably at about 420.

0:46:460:46:51

A £420,000 spend on top of his £290,000 purchase price,

0:46:510:46:57

plus costs and fees, take his total investment to around 720,000.

0:46:570:47:01

He was hoping the six flats would be worth around £1 million.

0:47:010:47:06

So has he got his sums right?

0:47:060:47:08

What do two local estate agents think of his six Enfield flats?

0:47:080:47:13

The properties are big, they're bright and very well laid out,

0:47:130:47:17

so yes, it's good all round.

0:47:170:47:19

It's quite a high spec quality.

0:47:190:47:21

The thing I get first is the space. Very, very spacious units.

0:47:210:47:26

There's off-street parking and nice communal gardens too.

0:47:260:47:29

No-one will struggle for parking here and there's plenty of places

0:47:290:47:33

to park on the road too.

0:47:330:47:35

Generally positive feedback

0:47:350:47:37

from the estate agents, but with Dave's spend of around 720,000,

0:47:370:47:41

will the re-sale value of the flats mean it was a good investment?

0:47:410:47:46

I think the re-sale values

0:47:460:47:48

are going to be in the region of £180,000 to £185,000

0:47:480:47:51

for the two-beds.

0:47:510:47:52

The one-bedroom flat will be a bit cheaper. That will be around 140,

0:47:520:47:57

maybe a bit more, maybe £145,000.

0:47:570:48:00

The re-sale values of the two beds will be around £175,000

0:48:000:48:04

and the one-bedroom, £135,000 to £140,000.

0:48:040:48:08

Even at the lower valuation, that's in the £1 million ballpark.

0:48:080:48:13

That would give Dave a pre-tax profit of around 300,000,

0:48:130:48:17

minus the usual selling expenses.

0:48:170:48:19

Is he happy with that?

0:48:190:48:22

Yes, it's not a bad price.

0:48:220:48:23

I thought perhaps we would do a bit better than that.

0:48:230:48:27

I thought perhaps £1.1 million.

0:48:270:48:29

The original price was about a million,

0:48:290:48:32

so considering the standard of the flats we've built here,

0:48:320:48:37

that's about correct to what we're looking for.

0:48:370:48:40

And if that pre-tax profit of around 300,000 isn't enough,

0:48:400:48:44

the flats also have great rental potential.

0:48:440:48:47

In terms of rental values for the properties,

0:48:490:48:52

the two-bedroom flats are likely to achieve

0:48:520:48:55

around £850, maybe £900 per month

0:48:550:48:57

because they're done to a very nice standard.

0:48:570:49:01

The one-bedroom flat will be around £700 to £750 per calendar month.

0:49:010:49:05

The two-bedroom flats, you can expect to get £1,100 per month,

0:49:050:49:09

and the one-bedroom, £800 per month would be realistic.

0:49:090:49:13

The rental values seem pretty good,

0:49:130:49:15

although we're not interested in renting. We are going to sell.

0:49:150:49:19

We've done them to a very high standard

0:49:190:49:21

and we wouldn't chance them getting damaged by renting them out,

0:49:210:49:25

so they're going to be sold off.

0:49:250:49:27

So despite rental returns of between 60,000 and 75,000 a year,

0:49:270:49:33

which could net a yield of about 10%,

0:49:330:49:36

Dave is determined to stick

0:49:360:49:37

to the original plan as he has throughout this development,

0:49:370:49:41

but does he see himself doing any more property investing?

0:49:410:49:45

I'll go back to running my business,

0:49:460:49:48

which is basically a skip hire business, and keep an open mind.

0:49:480:49:52

If anything does come up

0:49:520:49:54

that I could have another go on a similar project, I'd be interested.

0:49:540:49:58

At first, the Fallowfield district of Manchester may appear to be

0:50:000:50:05

just another suburb of a large city,

0:50:050:50:07

but for a property developer, it's anything but.

0:50:070:50:11

Situated close to the University of Manchester,

0:50:110:50:14

it has a large student population requiring accommodation.

0:50:140:50:17

With student lets usually worked out on a room-to-room basis,

0:50:170:50:22

the right property can bring in a pretty decent return,

0:50:220:50:26

so when a three-bed house came up for auction in the area,

0:50:260:50:29

retired chartered surveyor Richard and his Austrian-born wife Margit

0:50:290:50:35

snapped it up for 161,000.

0:50:350:50:37

Although it was bought with student lets in mind,

0:50:370:50:41

it actually wasn't bought by them or for them.

0:50:410:50:44

It's my mum and dad.

0:50:450:50:46

They sold a house and moved to a smaller property.

0:50:460:50:50

So we're investing the money for them to get the income.

0:50:500:50:55

We're managing it for them

0:50:550:50:56

and then taking a small share for our management expertise.

0:50:560:51:00

But their management expertise wasn't going to be on site.

0:51:000:51:04

As the couple are based on Anglesey, they needed to contract the work out

0:51:040:51:09

and hope regular visits would keep things on track,

0:51:090:51:12

so they armed their building team with a £25,000 budget

0:51:120:51:16

and set about turning this rather dated house into modern,

0:51:160:51:19

high quality student accommodation.

0:51:190:51:22

Well, just 12 weeks later, and we're back.

0:51:220:51:24

Outside, the house wasn't in need of much attention.

0:51:300:51:34

It was inside where a change was required.

0:51:340:51:37

And boy, has it got it!

0:51:420:51:45

It's light, airy and welcoming.

0:51:450:51:48

The downstairs front room has been turned into a completed bedroom

0:51:480:51:53

that's furnished, ready for some diligent study.

0:51:530:51:57

The back room is now a modern lounge.

0:51:570:52:00

Perhaps the most impressive change is the old kitchen area...

0:52:020:52:06

..which has been transformed into a fully equipped, modern kitchen,

0:52:080:52:13

catering for most student needs.

0:52:130:52:15

We started with stripping all the old kitchen units out,

0:52:160:52:21

you know, and we also had to re-roof the flat roof.

0:52:210:52:26

Ceiling tiles, all polystyrene ceiling tiles, these came off,

0:52:260:52:30

re-plastered, stripped that off, re-roofed it.

0:52:300:52:34

We put a larder unit in here because there's no storage.

0:52:340:52:39

Over there, underneath the stairs, was the old pantry,

0:52:390:52:44

but there's a downstairs toilet there now underneath the stairs,

0:52:440:52:48

so we thought we'd better have a larder unit.

0:52:480:52:51

So we put that, and finally, to finish off, we put the breakfast bar.

0:52:510:52:56

So with the kitchen finished off to a high standard,

0:52:570:53:01

there was just the matter of the upstairs.

0:53:010:53:04

With all the rooms benefiting from a full makeover,

0:53:170:53:20

these three bedrooms, along with the downstairs bedroom,

0:53:200:53:23

are ready for occupation.

0:53:230:53:25

The bathroom has been refurbished with students very much in mind.

0:53:250:53:29

What we've done in here is exactly the same as the rest of the house.

0:53:290:53:33

We've completely gutted the room out.

0:53:330:53:36

This was the only corner where we could have a shower,

0:53:360:53:39

so we had to move the toilet to the other side.

0:53:390:53:42

But it was quite easy to do, the plumbers tell us.

0:53:420:53:45

We had a new wash basin installed.

0:53:450:53:47

The central heating radiator was here, so we just replaced it

0:53:470:53:52

with a towel rail.

0:53:520:53:53

We put the new flooring in and all the pipes went underneath the floor

0:53:530:53:57

and we're very pleased with the result of it all.

0:53:570:54:00

With the upstairs space complete,

0:54:000:54:03

it was just a case of tackling the garden

0:54:030:54:05

and removing that toxic asbestos garage

0:54:050:54:09

and it was job done.

0:54:090:54:11

But at what cost?

0:54:110:54:14

The original budget was £25,000.

0:54:150:54:18

It's increased only a minimum, £500, you know,

0:54:180:54:23

so we've perhaps gone 500 over the 25,000.

0:54:230:54:27

With a £25,500 spend

0:54:270:54:31

and an initial purchase price of 161,000, plus costs and fees,

0:54:310:54:35

that will take their, or should I say, Richard's parents' total spend

0:54:350:54:39

to just short of the £188,000 mark.

0:54:390:54:43

So have the couple made a good investment on their behalf?

0:54:430:54:46

What do two local estate agents think?

0:54:460:54:49

It's a very nice house. I've been in a lot of these properties.

0:54:490:54:53

And this one is in particularly good condition throughout.

0:54:530:54:58

They've done a fantastic job on the property.

0:54:580:55:01

It's one of the best refurbs I've seen in the area.

0:55:010:55:05

This project has always been about rental and room-by-room rental

0:55:050:55:09

for the student market.

0:55:090:55:10

But would their investment of around 188,000 realise any profit

0:55:100:55:15

if it was sold?

0:55:150:55:16

If I was to put this on the market,

0:55:160:55:18

I'd suggest a price in the region of £190,000.

0:55:180:55:21

I'd anticipate somewhere in the region of £200,000 to £210,000.

0:55:210:55:25

So, not much profit, if any, to be seen on the re-sale market,

0:55:250:55:29

but rental really is the name of the game here.

0:55:290:55:33

If I was to put it onto the market,

0:55:330:55:35

I'd probably pitch it around £75 per person per week,

0:55:350:55:39

which would work out at around £1,300 per month.

0:55:390:55:42

The property is going to be rented, I believe, on a room-by-room basis

0:55:420:55:46

and I'd anticipate a rental in the region of £1,250 per month.

0:55:460:55:50

We've actually let the rooms already to four students.

0:55:500:55:54

-What are they paying? £72.50?

-£72.50 each per week.

-Per person.

0:55:540:56:00

And £72.50 a week per room

0:56:000:56:02

for the four rooms makes around £1,250 a month,

0:56:020:56:05

so even with a student let

0:56:050:56:07

which may be only nine to ten months of the year,

0:56:070:56:11

that would give a yield

0:56:110:56:13

of around 6%, so is this to be a long-term investment?

0:56:130:56:16

-We won't be selling it.

-It's certainly part of the portfolio

0:56:160:56:20

for Richard's parents, who finance this,

0:56:200:56:23

but eventually, it will come to us and then to our children.

0:56:230:56:27

# Just find a feeling, pass it on

0:56:270:56:30

# Just find a feeling, pass it on... #

0:56:320:56:35

In the ever-changing world of property,

0:56:450:56:47

there are always new things to learn

0:56:470:56:50

-and we'll have more advice for you next time.

-So join us then.

0:56:500:56:53

-Goodbye.

-Goodbye.

0:56:530:56:55

Subtitles by Red Bee Media Ltd

0:57:150:57:18

Martin Roberts and Lucy Alexander visit a bungalow in Devon, a development in Enfield, Middlesex and a property in Greater Manchester. All of these properties have been sold at auction; Martin and Lucy find out who bought them and what they paid when they went under the hammer.