0:00:00 > 0:00:05- Hello! Welcome to the programme. - Auctions are an interesting place to buy and sell property.
0:00:05 > 0:00:09Perhaps that's why they've become so popular over the years.
0:00:09 > 0:00:13Thousands of different lots are for sale each year under the hammer.
0:00:38 > 0:00:43People who buy regularly at auction know all the tricks of the trade.
0:00:43 > 0:00:47One way to make sure you're not inheriting a load of problems
0:00:47 > 0:00:51is to read the legal pack of the property you want to buy.
0:00:51 > 0:00:53It's better to be safe than sorry.
0:00:53 > 0:00:57Here are the properties that got our buyers interested on today's show.
0:00:58 > 0:01:02This end-of-terrace in Macclesfield only has two bedrooms
0:01:02 > 0:01:05but could prove a knock-out!
0:01:05 > 0:01:07It's a small property, but it packs a punch!
0:01:08 > 0:01:14In Plaistow, east London, there's a full-time job on offer.
0:01:14 > 0:01:17This is a 24-hours-a-day, seven-days-a-week job!
0:01:18 > 0:01:21And this former office in Cardiff
0:01:21 > 0:01:24has two floors and some deadly dry rot.
0:01:25 > 0:01:28It may look pretty, but in terms of a building, it's horrendous!
0:01:29 > 0:01:32All these properties went to auction
0:01:32 > 0:01:38and we'll find out who bought them and what they paid when they went under the hammer.
0:01:41 > 0:01:44I'm in the market town of Macclesfield in Cheshire.
0:01:44 > 0:01:48It has great rail links to Manchester and Stoke
0:01:48 > 0:01:51and a buzzing high street.
0:01:51 > 0:01:55The King's School here is over 500 years old.
0:01:55 > 0:01:58Its motto is "No terror except of the bad."
0:01:58 > 0:02:01So let's hope that's not what we find here!
0:02:03 > 0:02:07So will the place I'm here to view get top marks?
0:02:07 > 0:02:11The property I'm here to see is about a mile and a half from the town centre.
0:02:11 > 0:02:17It's a two-bedroomed mews house built in the 1970s.
0:02:17 > 0:02:22It had a guide price of 85,000 quid. It's tucked away at the end of this road.
0:02:22 > 0:02:27Doesn't look too big from the outside, but as they say, nice things come in small packages.
0:02:28 > 0:02:31It's looking pretty tidy from the front.
0:02:31 > 0:02:35But will this property deliver the goods when we go through the door?
0:02:35 > 0:02:37So what's it like inside?
0:02:37 > 0:02:40There's a little porch area, somewhere to hang coats.
0:02:40 > 0:02:46Always useful. Then through into basically the main room downstairs.
0:02:46 > 0:02:49The living area. Open stairs up to the bedrooms.
0:02:49 > 0:02:52It's not a bad size and there's lots of light
0:02:52 > 0:02:54coming through the windows.
0:02:54 > 0:02:58Then through to the only other room downstairs, the kitchen.
0:02:58 > 0:03:01Again, not a bad size.
0:03:01 > 0:03:04There's enough room for a dining table, I'd say, there.
0:03:04 > 0:03:08Obviously the units, you can see the state they're in.
0:03:08 > 0:03:11Rip them out, put a new kitchen in here.
0:03:11 > 0:03:13It would definitely dramatically affect it.
0:03:13 > 0:03:16But overall, it's... It's OK!
0:03:18 > 0:03:23So appearances certainly seem to be deceptive in this case.
0:03:29 > 0:03:34It feels much bigger inside than you might anticipate from the street.
0:03:34 > 0:03:40So, upstairs, no great surprises. A good-sized double on the front,
0:03:40 > 0:03:45a smaller double at the rear, then through to the bathroom.
0:03:45 > 0:03:49This is good news. I reckon with a bit of grouting in here,
0:03:49 > 0:03:53keep these units, take out this cupboard to create more space.
0:03:53 > 0:03:57Overall you've got yourself not a bad bit of space.
0:03:57 > 0:04:00And in general, it's a small property,
0:04:00 > 0:04:02but it packs a punch!
0:04:10 > 0:04:14And with its guide price of 85,000, there's an added bonus
0:04:14 > 0:04:16with this two-bedroomed mews property.
0:04:19 > 0:04:24At the front is this garage, the first one on this block, right by the house.
0:04:24 > 0:04:26And there's another bonus round the back.
0:04:29 > 0:04:35A nice stable door there. Out of the rear of the property into this courtyard area.
0:04:35 > 0:04:37Most of the garden is laid to flags.
0:04:37 > 0:04:41Very low maintenance, especially if you want to rent it out.
0:04:41 > 0:04:44And then a real bonus.
0:04:44 > 0:04:48At the top of the garden is this shed. It's a pretty decent size.
0:04:48 > 0:04:53So that could possibly be even something like a home office, perhaps,
0:04:53 > 0:04:58or just a really good workshop for activities and pastimes.
0:04:58 > 0:05:01A nice thing to have. The outside area is a big plus.
0:05:01 > 0:05:05So I'd give top marks to this place.
0:05:05 > 0:05:09But is it going to get such a high score from a local estate agent
0:05:09 > 0:05:12familiar with the housing stock round here?
0:05:12 > 0:05:14How does this house compare to others?
0:05:14 > 0:05:18The biggest selling feature is its end of cul de sac location.
0:05:18 > 0:05:22It's a modern mews property, not in too bad a condition.
0:05:22 > 0:05:26It shouldn't need much money spent on it. It's cosmetic - kitchen, bathroom, et cetera.
0:05:26 > 0:05:32How much could this achieve after refurbishment to the house and summer house?
0:05:32 > 0:05:35The summer house is an asset which will help it sell.
0:05:35 > 0:05:38It has electricity connected, but needs money spent on it.
0:05:38 > 0:05:43Once renovated, the property should reach in the region of £125,000.
0:05:43 > 0:05:47Is there potential here for a buy-to-let investor?
0:05:47 > 0:05:50How much income could it generate?
0:05:50 > 0:05:52Should the property go up for rent,
0:05:52 > 0:05:58I'd consider an open rental figure in the region of 600 to £650 per calendar month.
0:05:59 > 0:06:04So did this two-bed property that had a guide price of 85,000
0:06:04 > 0:06:06appeal to a buy-to-let investor
0:06:06 > 0:06:09or a developer looking to refurbish and sell it on?
0:06:09 > 0:06:13Time to find out as it goes under the hammer.
0:06:13 > 0:06:16Lot 34.
0:06:16 > 0:06:18A two-bedroomed end mews.
0:06:18 > 0:06:19What's this worth?
0:06:20 > 0:06:22Who's going to give me 80? 80,000?
0:06:22 > 0:06:2580,000. At 80,000.
0:06:25 > 0:06:2875. No lower. 75 bid. Thank you.
0:06:28 > 0:06:3075,000. I have 75. Do we see 76?
0:06:30 > 0:06:3276. 77.
0:06:32 > 0:06:3577. 78? 78,000, then.
0:06:35 > 0:06:3779? 79.
0:06:37 > 0:06:3980. At £80,000.
0:06:39 > 0:06:4180. 81. 82.
0:06:41 > 0:06:4383?
0:06:43 > 0:06:4584. 85.
0:06:45 > 0:06:4786. 87.
0:06:47 > 0:06:4987,000.
0:06:49 > 0:06:51At 87,000 for the first time.
0:06:52 > 0:06:5488. New bid. Ooh.
0:06:54 > 0:06:5689.
0:06:56 > 0:06:5890. 91.
0:06:59 > 0:07:0190 and a half. Here we go!
0:07:01 > 0:07:0391. 91 and a half.
0:07:04 > 0:07:0891. 91 and a half. 91 and a half. 92.
0:07:08 > 0:07:1092 and a half.
0:07:12 > 0:07:1492 and a half. 93.
0:07:14 > 0:07:1693 and a half. 94.
0:07:16 > 0:07:1994 and a half? No. At 94,000, then for the first time.
0:07:19 > 0:07:22Second time at 94,000.
0:07:22 > 0:07:24Are we all done at £94,000?
0:07:24 > 0:07:27There you go, sir. Your paddle number?
0:07:30 > 0:07:34That final successful bid of 94,000 was made by John.
0:07:34 > 0:07:37He's now retired, but used to work in sales.
0:07:40 > 0:07:43He and his partner, Sue, are keen golfers
0:07:43 > 0:07:47and have built up a small portfolio of buy-to-let properties over the years.
0:07:47 > 0:07:51I met John back at their new purchase to hear the plans for it.
0:07:51 > 0:07:55- John, lovely to meet you. Congratulations.- Thank you.
0:07:55 > 0:07:59- Tell me why you wanted to buy this place.- I wanted to keep fit!
0:07:59 > 0:08:05- OK!- So it's a mental exercise and I also wanted to turn a profit.
0:08:05 > 0:08:10So your first priority was to have something that kept you active.
0:08:10 > 0:08:12I'm retired and I play a lot of golf.
0:08:12 > 0:08:15It was just something to spark an interest.
0:08:15 > 0:08:19Not a primary residence. Something to do up and sell on?
0:08:19 > 0:08:20Primarily to do up and sell on.
0:08:20 > 0:08:23If the market's not right, I'll let it.
0:08:23 > 0:08:26Tell me about you. What did you do before you retired?
0:08:26 > 0:08:28I was a facilities manager for a company.
0:08:28 > 0:08:32I looked after 20 offices they had through the UK.
0:08:32 > 0:08:37And I was a buying manager and also looked after a fleet of executive cars.
0:08:37 > 0:08:41- Nothing to do with property? - I looked after 20 offices.- Right.
0:08:41 > 0:08:44There was a fair involvement in the property side there.
0:08:44 > 0:08:47I've got some buy-to-let properties as well.
0:08:47 > 0:08:52- So why this place?- It looked easy.
0:08:52 > 0:08:55There's nothing wrong with it structurally. There's no damp.
0:08:55 > 0:08:59It's just cosmetic. So it looked fairly easy.
0:08:59 > 0:09:04- Will you do the work yourself? - The intention was that I'd do the labouring
0:09:04 > 0:09:05and there's a lot of it to do.
0:09:05 > 0:09:11Decorating. But unfortunately, since the auction, I've had a heart attack!
0:09:11 > 0:09:13- A heart attack?!- Yes!
0:09:13 > 0:09:17Silly thing to do, I know. I wasn't doing anything stressful.
0:09:17 > 0:09:20I don't know what it was. But I've had a heart attack
0:09:20 > 0:09:23so I'm bringing people in to do some of the heavy work.
0:09:23 > 0:09:27- How are you?- Fit as a fiddle! I feel really well.
0:09:27 > 0:09:29Really up to the challenge.
0:09:29 > 0:09:33But the doctor says, "Take it easy and don't do too much."
0:09:33 > 0:09:36So how will that affect what you do?
0:09:36 > 0:09:42It's going to cost a bit more, so the budgets have increased
0:09:42 > 0:09:44because of bringing other people in.
0:09:44 > 0:09:47But we'll do exactly the same work as we were going to do.
0:09:50 > 0:09:53It's great that John's made a good recovery from his heart attack.
0:09:53 > 0:09:57But I'm very glad to hear he'll get help with this project.
0:10:00 > 0:10:02Tell me what work you're going to do.
0:10:02 > 0:10:05I'm going to do the kitchen. That's the first priority.
0:10:05 > 0:10:11There's a lot of work to do in the garden. Trees to be cut back.
0:10:11 > 0:10:17There's a summer house that I intend to make a feature of. I'll carpet that.
0:10:17 > 0:10:18Hopefully, when we sell it,
0:10:18 > 0:10:25I'll advertise that as either a home office or art studio or music studio.
0:10:25 > 0:10:28I hope that'll be a real add-on to the property.
0:10:28 > 0:10:31Then carpets throughout, it'll need decorating.
0:10:31 > 0:10:34Some of the double glazing is shot.
0:10:34 > 0:10:36So that needs to be sorted out.
0:10:36 > 0:10:38But there's nothing major.
0:10:38 > 0:10:42- What about the bathroom? - The bathroom is fairly new.
0:10:42 > 0:10:46There's a bit of mildew, so clean it up, re-grout some of it.
0:10:46 > 0:10:49The floor looks good, so we'll retain the bathroom.
0:10:49 > 0:10:55- Will your partner get involved? - Yes, she's golfing, but she's my style guru.
0:10:55 > 0:11:00She'll pick the kitchen, work out colour schemes. I'm colour blind, so...
0:11:00 > 0:11:03- Right.- So that's really difficult, so she'll do all of that.
0:11:03 > 0:11:07- And she's a part funder. - As in funding the... - As in putting money in.
0:11:09 > 0:11:13So if John was left to it, we could find some interesting colour schemes!
0:11:13 > 0:11:18But thankfully his partner and fellow golfer Sue is there to help out.
0:11:18 > 0:11:22But she's also a joint investor, so John will have to watch his pennies.
0:11:25 > 0:11:30So what was the budget before the heart attack and what is it now?
0:11:30 > 0:11:32Seven and a half, now nine.
0:11:32 > 0:11:37- OK.- A thousand contingency. So it's got to be brought in for ten.
0:11:37 > 0:11:42Otherwise the maths won't work. But I did a lot of research on the property.
0:11:42 > 0:11:45I'm sure I know what the sale price will be when it's done.
0:11:45 > 0:11:51Working backwards from that sets your budget, profit margin, price at the auction.
0:11:51 > 0:11:55- So to me it's a mathematical exercise.- Very sensible indeed.
0:11:55 > 0:11:56Talk me through the numbers.
0:11:56 > 0:12:01I think it should sell for 125, done up.
0:12:01 > 0:12:06After a budget of ten, 115.
0:12:06 > 0:12:08I bought it at auction for 94.
0:12:08 > 0:12:11So there's a little profit gap.
0:12:11 > 0:12:13Hopefully!
0:12:13 > 0:12:16- What's the time scale for getting it all sorted?- Well,
0:12:16 > 0:12:19it was a tight four weeks. Now I'm saying four to six.
0:12:19 > 0:12:23It gives me that extra time for planning round the edges
0:12:23 > 0:12:26and bring people in if necessary.
0:12:26 > 0:12:30How strict on yourself are you going to be in terms of not doing anything?
0:12:30 > 0:12:34I played my first 18 holes of golf yesterday!
0:12:34 > 0:12:38I worked all afternoon and went to a concert last night!
0:12:38 > 0:12:41- Right!- I have a real problem in slowing down!
0:12:41 > 0:12:44I have a very strong partner at home
0:12:44 > 0:12:47and she will stop me
0:12:47 > 0:12:49from doing too much!
0:12:49 > 0:12:54A relaxed round of golf I'm sure is fine, but ripping out units is a big no-no!
0:12:54 > 0:12:59- I start on the kitchen this afternoon.- What...- I start on it. I'm doing it!
0:12:59 > 0:13:00What?!
0:13:00 > 0:13:03Well, it can't be that difficult!
0:13:03 > 0:13:07It's not difficult, it's the physical exertion!
0:13:07 > 0:13:10We'll take it very easy. Hour slots.
0:13:10 > 0:13:13Are you sure you're doing the right thing?
0:13:13 > 0:13:14Yeah.
0:13:14 > 0:13:17Congratulations and good luck.
0:13:17 > 0:13:21- Thanks very much.- Good health to you.- Very kind of you. - We'll see how you get on.- OK.
0:13:22 > 0:13:26Well, an inspirational story from John, there.
0:13:26 > 0:13:28But I really hope he gets proper advice
0:13:28 > 0:13:30before he takes on too much work.
0:13:30 > 0:13:34In terms of sorting the place out, not too many challenges ahead.
0:13:34 > 0:13:36I can't wait to see how he gets on.
0:13:36 > 0:13:38Find out later in the show.
0:13:40 > 0:13:44I'm in the East End, today, a place called Plaistow.
0:13:44 > 0:13:49The average price of a terraced house here is just over £200,000.
0:13:49 > 0:13:52That represents fantastic value
0:13:52 > 0:13:55when you consider the average property price in the capital
0:13:55 > 0:13:57is over 380 grand!
0:13:57 > 0:13:59Wow!
0:13:59 > 0:14:02With excellent transport links into the city,
0:14:02 > 0:14:04this is a hugely popular part of the capital.
0:14:04 > 0:14:09It has a proud established heritage that's evident everywhere,
0:14:09 > 0:14:11a fabulously fruity market,
0:14:11 > 0:14:15and in the middle of it all, the West Ham football ground stands tall.
0:14:15 > 0:14:21- #- I'm forever blowing bubbles...- #
0:14:22 > 0:14:26I'm here to see a property that's in the new city triangle.
0:14:26 > 0:14:31A cluster of roads that are deemed to be desirable by local estate agents.
0:14:31 > 0:14:35The houses along here are well kept
0:14:35 > 0:14:39and retain a lot of lovely Victorian features that we all crave.
0:14:39 > 0:14:42So I'm looking forward to seeing today's auction lot.
0:14:43 > 0:14:45Not so great from the outside,
0:14:45 > 0:14:47but I won't let those boards deter me.
0:14:47 > 0:14:51The guide for this two-bed terrace is £100,000.
0:14:51 > 0:14:55Let's go and see if it gets better on the inside.
0:14:56 > 0:15:02And on a sunny day like today, let's hope I see the property in its best light.
0:15:02 > 0:15:04Hmm. Maybe not!
0:15:04 > 0:15:05Whoa!
0:15:05 > 0:15:09If that front door is anything to go by,
0:15:09 > 0:15:12I think this is going to be a pretty grim viewing!
0:15:12 > 0:15:17I cannot tell you what it's like to be on the inside in here.
0:15:17 > 0:15:19It really, really smells of damp.
0:15:19 > 0:15:24It feels damp. It's quite cold in here, yet it's a warm sunny day.
0:15:24 > 0:15:26Look at the old electrics, the Bakelite there.
0:15:26 > 0:15:32The whole place just needs an overhaul. It's incredibly dated.
0:15:32 > 0:15:34Health and Safety hazards down here.
0:15:34 > 0:15:37There are holes in the floorboards,
0:15:37 > 0:15:39holes in the walls.
0:15:39 > 0:15:43At any point you feel like you're going to go through the floorboards.
0:15:43 > 0:15:45There's probably woodworm everywhere.
0:15:45 > 0:15:47Come and look over here.
0:15:47 > 0:15:52Even the pipe work underneath is completely rusted away.
0:15:52 > 0:15:56There's the kitchen but there's a shower in the middle of it!
0:15:56 > 0:16:01There's nothing to make you think it's a kitchen. It really needs to be taken back
0:16:01 > 0:16:04to the absolute bare bone.
0:16:04 > 0:16:07This is going to need full-time commitment.
0:16:07 > 0:16:12This really is a 24-hour-a-day, seven-day-a-week job.
0:16:12 > 0:16:14No slackers need apply!
0:16:20 > 0:16:23This property that was guided at £100,000
0:16:23 > 0:16:27is damaged, dirty and in dire need of attention.
0:16:27 > 0:16:31The back and the bizarre kitchen/shower room is in such a state
0:16:31 > 0:16:34I can't get through to look at the garden.
0:16:34 > 0:16:38I had to make do with peering through the window.
0:16:48 > 0:16:53And upstairs, bedroom one - you've guessed it - needs loads of work.
0:16:53 > 0:16:59And through there, much the same. This is bedroom two,
0:16:59 > 0:17:01and as you see, it needs a lot of work.
0:17:01 > 0:17:05And there's nowhere to move that downstairs bathroom up here.
0:17:05 > 0:17:07Bit of a shame.
0:17:16 > 0:17:19This had a guide price of £100,000.
0:17:19 > 0:17:23We asked a local estate agent to give us his opinion
0:17:23 > 0:17:26on this conundrum of a property.
0:17:27 > 0:17:30The property needs a lot of work.
0:17:30 > 0:17:34It's quite confusing as to where you'd put the kitchen and bathroom.
0:17:34 > 0:17:36It'll take some imagination in planning.
0:17:38 > 0:17:42But what to do once the work's done? Is this a good rental investment
0:17:42 > 0:17:46or is the real money to be made by selling this on?
0:17:46 > 0:17:51With everything that's happening in the local area and projections for the next four to five years,
0:17:51 > 0:17:56I'd suggest an initial rental and wait for an upturn in the market to sell in future.
0:17:56 > 0:17:59Depending on how the property was finished,
0:17:59 > 0:18:04we'd rent it between £950 per calendar month
0:18:04 > 0:18:07to 1,050 per calendar month.
0:18:07 > 0:18:10But if the buyer has their heart set on selling?
0:18:10 > 0:18:15I would value a finished product somewhere between £205,000
0:18:15 > 0:18:17and £210,000.
0:18:17 > 0:18:21A downstairs bathroom is a real turn-off for me
0:18:21 > 0:18:25but buyers in this area, they come to accept it.
0:18:25 > 0:18:28It does require a lot of work, but once complete,
0:18:28 > 0:18:31I think it could be a nice little home or great rental investment.
0:18:31 > 0:18:34Let's see who wanted this as we go to auction.
0:18:38 > 0:18:40Who'd like to kick it off?
0:18:40 > 0:18:44- 120.- 120. Bold bids get it. Don't forget that.
0:18:44 > 0:18:46121. 122.
0:18:46 > 0:18:49123. 124.
0:18:49 > 0:18:50125.
0:18:50 > 0:18:52126.
0:18:52 > 0:18:54127. 128.
0:18:54 > 0:18:56129.
0:18:56 > 0:18:58130. 131.
0:18:58 > 0:19:01132. 133.
0:19:02 > 0:19:04133. Sorry.
0:19:04 > 0:19:06134. 135.
0:19:06 > 0:19:09136. 137.
0:19:09 > 0:19:11138.
0:19:11 > 0:19:12145?
0:19:12 > 0:19:15Ah, 140. 141.
0:19:15 > 0:19:17'The bidding continued at a pace.
0:19:17 > 0:19:21'We rejoin it as it reaches 150,000.'
0:19:21 > 0:19:23158.
0:19:24 > 0:19:27159. 160.
0:19:27 > 0:19:29161. 162.
0:19:31 > 0:19:34161 on my right. First time.
0:19:34 > 0:19:36Second time.
0:19:36 > 0:19:39Third and last time. Have you all done?
0:19:39 > 0:19:41Sold 161. Well done, sir.
0:19:41 > 0:19:46And it was Daniel who was successful with his £161,000 bid.
0:19:46 > 0:19:48He runs a recruitment company
0:19:48 > 0:19:52but also has several investment properties in West London.
0:19:52 > 0:19:54His move east is a new venture for him.
0:19:54 > 0:19:59He brought along a couple of side-kicks to check out this danger zone of a property!
0:20:11 > 0:20:15Daniel, great to meet you. Why did you want to buy this house?
0:20:15 > 0:20:17It wasn't that I set out to actually buy this.
0:20:17 > 0:20:20I was looking at another area, Hounslow,
0:20:20 > 0:20:23where I have property, ten properties over there.
0:20:23 > 0:20:27I went to the auction. The property I was going for was over-priced.
0:20:27 > 0:20:30I was going in at about 200,000. It went for 280.
0:20:30 > 0:20:35I hadn't picked this house. I hadn't actually, if I admit, seen inside it!
0:20:35 > 0:20:39- Uh-oh!- It went roughly... I had marked out about 150,000.
0:20:39 > 0:20:44I went into the auction, got carried away and then bought the place.
0:20:44 > 0:20:47- Did you buy it blind? - Erm...- Tell Lucy!
0:20:47 > 0:20:49I did!
0:20:49 > 0:20:52- OK.- Blind inside, but I've done research on the area.
0:20:52 > 0:20:56- Did you even peer through the letter box?- No, it was boarded up!
0:20:56 > 0:21:00OK, so you literally bought the house... Did you even visit the street?
0:21:00 > 0:21:06- I did the area. Not this exact street.- Not the street.- No.
0:21:06 > 0:21:10But I had done research on the area, the letting area, the potential of the area.
0:21:10 > 0:21:13And this is what I was after.
0:21:13 > 0:21:15And it's in the price range.
0:21:15 > 0:21:20OK, I think we all know that is a good dead cert rental area.
0:21:20 > 0:21:23It's a really nice road, you only need to go up and down.
0:21:23 > 0:21:26It's when you get inside that all the problems start!
0:21:26 > 0:21:30How did you feel when you walked in here for the first time?
0:21:30 > 0:21:33Because it's not great, is it?
0:21:33 > 0:21:38When I came in the first time, I must admit, the place was a shambles.
0:21:38 > 0:21:41I did put my hands to my head and said, "What have I done?"
0:21:41 > 0:21:46I went around, looked upstairs, tried to look for positive things.
0:21:46 > 0:21:51The best thing was there's two good rooms upstairs. I love these houses where
0:21:51 > 0:21:54I can get in, I'm going to get a skip outside, everything out,
0:21:54 > 0:21:58the floors, the walls, put new electrics, new plumbing.
0:21:58 > 0:22:04- This is going to be a kitchen/diner area.- You're going to open the space up?- I'll open up the space.
0:22:04 > 0:22:08I was looking at it. It's not enough potential to do it up to sell.
0:22:08 > 0:22:12I'll do it up to rent and make an investment that way.
0:22:12 > 0:22:17So it's a rental investment. Long term, what a fine investment.
0:22:17 > 0:22:23I'm going to put in 30,000, bring it up to about 190.
0:22:23 > 0:22:25I hope to get it valued at 215.
0:22:25 > 0:22:30You think £30,000 is going to be enough to really turn it around?
0:22:30 > 0:22:38I'm going to put 15 in labour, 15 in all the work, and the plumbing work.
0:22:38 > 0:22:41I have a 5,000 contingency on that.
0:22:52 > 0:22:57Daniel's imagination will certainly need to go at full speed to turn this place around,
0:22:57 > 0:23:02particularly to sort out that odd kitchen/bathroom combo.
0:23:02 > 0:23:06Does the prospect fill him with delight or dread?
0:23:06 > 0:23:10Are you excited by the fact you've got to rip this place back to the bare bone?
0:23:10 > 0:23:14I'm beginning to love it. I'm dying to get into it, I really am.
0:23:14 > 0:23:16When I say I'm dying to get into it,
0:23:16 > 0:23:22I have a team of two builders, they come in, I use the head and plan it all
0:23:22 > 0:23:23and go ahead like that.
0:23:23 > 0:23:27We hope to start work next Tuesday
0:23:27 > 0:23:30- and within three months I will have this finished.- Really?
0:23:30 > 0:23:36- To the spec, yes.- Something I said when I first viewed this property was no slackers need apply
0:23:36 > 0:23:40because it needs somebody to come in here and graft.
0:23:40 > 0:23:43It's the type of job I love. I love to get a property,
0:23:43 > 0:23:45normally I go for probate properties.
0:23:45 > 0:23:47But a property where you take out everything,
0:23:47 > 0:23:50and even though I have the recruitment business,
0:23:50 > 0:23:53I would like to get back into the property market,
0:23:53 > 0:23:57look at an area like West Ham, it's up and coming for the prices.
0:23:57 > 0:24:00You're going to make money on the buy-to-let.
0:24:00 > 0:24:03Anything you're worried about, having bought this at auction?
0:24:03 > 0:24:08If you'd asked me five minutes after coming into the house,
0:24:08 > 0:24:11I'd have said, "What the hell have I done?"
0:24:11 > 0:24:15I went outside, had a cigar, came back and said, "No, it's something I like."
0:24:15 > 0:24:22I've been out here today, looked at the area and I really like the area, the people, the road outside.
0:24:22 > 0:24:27Daniel, it's been wonderful meeting you. I'm sure you'll do a fine job. Can't wait to see it!
0:24:27 > 0:24:32- I hope you'll have fallen in love with it.- I believe I will. Thank you very much.- Thank you.
0:24:39 > 0:24:41Buying blind is always a no-no in my book.
0:24:41 > 0:24:45Luckily for Daniel, things seem to have worked out for him.
0:24:45 > 0:24:49So we all need this house is in desperate need of an overhaul.
0:24:49 > 0:24:51But he seems to have a firm plan in place.
0:24:51 > 0:24:54Question is, will he do it all in three months
0:24:54 > 0:24:57and stick to that £30,000 budget?
0:24:57 > 0:25:00Find out what happens later in the programme.
0:25:01 > 0:25:05Coming up: in Cardiff, there could be a new lease of life for this office.
0:25:05 > 0:25:10With some clever designs, you could get four, five, maybe six flats in here.
0:25:11 > 0:25:16We return to east London to discover what Daniel discovered at the back.
0:25:16 > 0:25:21The garden was terrible. You couldn't get into it. We didn't know what was there.
0:25:22 > 0:25:27But first, we return to Macclesfield to find that the shed's finished.
0:25:27 > 0:25:31The electrics have all been checked out. So it's all ready to go.
0:25:35 > 0:25:37Back to Macclesfield in Cheshire, now,
0:25:37 > 0:25:41where earlier in the programme this two-bed end-of-terrace
0:25:41 > 0:25:46with a large summer house was bought for £94,000 by John and his partner, Sue.
0:25:47 > 0:25:50He's a retired facilities manager and Sue's a lecturer.
0:25:50 > 0:25:55They're both keen golfers and have a small portfolio of buy-to-let properties.
0:25:55 > 0:25:59But the plan here was to refurbish the house and sell it.
0:26:01 > 0:26:05- Will you do most of the work yourself?- The intention was that I'd do the labouring,
0:26:05 > 0:26:08and there's a lot of it to do, decorating.
0:26:08 > 0:26:12But unfortunately, since the auction, I've had a heart attack!
0:26:12 > 0:26:17- A heart attack?! - Yes! Silly thing to do, I know.
0:26:17 > 0:26:22How strict on yourself are you going to be in terms of not doing anything?
0:26:22 > 0:26:27- I'll start on the kitchen this afternoon!- What?- I start. I'm doing it.
0:26:27 > 0:26:29What?!
0:26:29 > 0:26:33- Are you sure you're doing the right thing?- Yeah.
0:26:35 > 0:26:41It's now two months later and John's invited us back to see the end result.
0:26:42 > 0:26:46Well, the garage door's been painted, so a good start.
0:26:46 > 0:26:52The paved garden has been jet-washed and the summer house has been repainted.
0:26:52 > 0:26:54More on that later.
0:26:56 > 0:27:00Inside, the living room has been carpeted and decorated.
0:27:00 > 0:27:03Even the lobby by the front door looks much better.
0:27:04 > 0:27:09The kitchen was a decent size, but the units were past it.
0:27:11 > 0:27:16Now the new flooring and classy white units have been installed, it looks fantastic.
0:27:16 > 0:27:20And despite my concerns, it was the first job that John tackled.
0:27:21 > 0:27:26When I walked in, the kitchen was very dated and very worn.
0:27:26 > 0:27:30So my first job was to rip it out and start again.
0:27:30 > 0:27:35My partner suggested putting the colour stripe in to lift the whole kitchen,
0:27:35 > 0:27:39but I particularly wanted the clean look of the gloss white.
0:27:39 > 0:27:43We've put a larder unit in to cover the boiler.
0:27:43 > 0:27:46All in all, it's turned out very well indeed. I'm pleased with it.
0:27:49 > 0:27:55Upstairs, the two bedrooms have been decorated. The colour scheme is down to Sue.
0:28:00 > 0:28:06Fortunately, the bathroom was in good condition when we came in. But the grout was really dirty.
0:28:06 > 0:28:09So we've re-grouted it, put a bath screen in,
0:28:09 > 0:28:14new toilet seat, and generally cleaned it very, very well.
0:28:16 > 0:28:20Prior to John's heart attack, he'd set a timescale of four weeks.
0:28:20 > 0:28:24He then extended it by two weeks and the work has been finished in six.
0:28:24 > 0:28:26The outside looks great.
0:28:26 > 0:28:30The summer house was one of the main attractions to the property.
0:28:30 > 0:28:33We've refurbished that, put a new floor in,
0:28:33 > 0:28:35and waterproof membrane.
0:28:35 > 0:28:40We've carpeted it. The electrics were already there. They've been checked out.
0:28:40 > 0:28:42So it's all ready to go.
0:28:42 > 0:28:48Former salesman John's hunch that the summer house was the USP of this property
0:28:48 > 0:28:52proved right on the day we very first met him.
0:28:52 > 0:28:56In the afternoon, I started to take out the kitchen.
0:28:56 > 0:29:00Within two hours, somebody knocked on the door and wanted to buy the property
0:29:00 > 0:29:05because of the summer house. They wanted to use it as a dark room.
0:29:05 > 0:29:08So that's been a very successful project!
0:29:08 > 0:29:12John has increased his initial budget from six to 10,000
0:29:12 > 0:29:16to allow for the work he was sensibly not going to tackle.
0:29:16 > 0:29:20- So how much has he had to spend? - I've brought it in for 9,700.
0:29:20 > 0:29:23So I'm very satisfied with that.
0:29:25 > 0:29:29Time to see what two local property experts think of the property
0:29:29 > 0:29:31with its garage and summer house.
0:29:33 > 0:29:36I think the vendor's made a fantastic job of the property.
0:29:36 > 0:29:38Good finish with the kitchen and bathroom.
0:29:38 > 0:29:40The summer house is great.
0:29:40 > 0:29:43With the additional benefit of the garage and parking,
0:29:43 > 0:29:45it's a great job.
0:29:45 > 0:29:48The kitchen's come up extremely well.
0:29:48 > 0:29:52He's chosen the right kind of units, high-gloss white with the red tile.
0:29:52 > 0:29:55The bathroom is superb. Beautiful.
0:29:55 > 0:29:59- Again, white and chrome.- I particularly like the summer house.
0:29:59 > 0:30:03The parking is especially good. Many properties here don't have parking and a garage.
0:30:03 > 0:30:10How much is the place now worth? John paid £94,000 at the auction,
0:30:10 > 0:30:15and has spent 9,700, making a total of just under 104,000.
0:30:15 > 0:30:20You could put this on the open market for around 120 to £127,500.
0:30:20 > 0:30:24I would market the property for £130,000.
0:30:24 > 0:30:28That valuation range will produce a gross profit for John
0:30:28 > 0:30:31of between 16 and £26,000.
0:30:32 > 0:30:35When I purchased the property,
0:30:35 > 0:30:40I thought it would fetch about 125 because that's the stamp duty level.
0:30:40 > 0:30:43So I'm pleasantly surprised. If I can get 130, that'll be terrific.
0:30:43 > 0:30:48If John had to rent the property out, what income could it produce?
0:30:48 > 0:30:53You'd be looking on the open market for rental in the region of 600 to £650 per calendar month.
0:30:53 > 0:30:57I would be able to rent this property out for £600 per calendar month.
0:30:57 > 0:31:01I have buy-to-let properties, but on this particular venture,
0:31:01 > 0:31:06what I really wanted to do was renovate the property and sell it straight on.
0:31:06 > 0:31:08It seems I've been successful.
0:31:09 > 0:31:14Fantastic. The person who knocked on the door decided to buy.
0:31:14 > 0:31:16How much did John achieve from the sale?
0:31:16 > 0:31:23Because of the stamp duty level at 125, I've said the price is 125
0:31:23 > 0:31:25and that's what they've agreed to pay.
0:31:25 > 0:31:28Before the auction, John had done his research
0:31:28 > 0:31:31and calculated that there was potential profit here.
0:31:31 > 0:31:37Even though his budget expanded because of his health scare, he's been proved right.
0:31:37 > 0:31:43The house is finished, he's got a buyer and hopefully his health scare is behind him. So what next?
0:31:43 > 0:31:47If I was to buy again, I would certainly go to auction.
0:31:47 > 0:31:52But I don't think I'll be doing it in the short term or the medium term!
0:31:52 > 0:31:57Perhaps not even the long term. I deserve a rest at the moment, so I'm not even thinking about it.
0:32:03 > 0:32:05I'm in Cardiff Bay in South Wales.
0:32:05 > 0:32:09Nowadays, a trendy area with bars, shops and restaurants.
0:32:09 > 0:32:12But this is a very important part of Cardiff's history.
0:32:12 > 0:32:16Because it was from here that the coal from the South Wales' mines
0:32:16 > 0:32:18was exported to the rest of the world.
0:32:18 > 0:32:22And that helped develop Cardiff into the capital city that it is today.
0:32:25 > 0:32:30But sadly, as the mines began shutting, most of the industry closed down as well
0:32:30 > 0:32:34and the area became derelict. But it's now been regenerated
0:32:34 > 0:32:37with the building of the Cardiff Bay barrage.
0:32:39 > 0:32:43This is just round the corner from the heart of Cardiff Bay.
0:32:43 > 0:32:46A mix of commercial and residential properties.
0:32:46 > 0:32:50I'm here to see an old office building. Two storeys, a guide price of 59,000 quid.
0:32:50 > 0:32:53Let's take a look inside.
0:33:00 > 0:33:05Ooh. An interesting shape! Got an industrial feel to it straightaway.
0:33:05 > 0:33:09And I'm also seeing, boy oh boy, one big space
0:33:09 > 0:33:12in need of a lot of renovation.
0:33:12 > 0:33:15Tell you what, that's not good!
0:33:16 > 0:33:20This part of the ceiling has completely collapsed, as you can see.
0:33:20 > 0:33:24My guess is that water's come through the roof at some point.
0:33:24 > 0:33:28It's gone through the floorboards and it's collected here.
0:33:28 > 0:33:30Before the ceiling itself collapsed,
0:33:30 > 0:33:35that created the perfect conditions for the growth of dry rot, as you see there.
0:33:35 > 0:33:37A beautiful specimen!
0:33:37 > 0:33:41May look pretty, but in terms of a building, it is horrendous.
0:33:41 > 0:33:44They call it building cancer, for a good reason.
0:33:44 > 0:33:48It spreads through wood, through stone and concrete
0:33:48 > 0:33:52and the only thing to do is cut that out and burn the wood.
0:33:52 > 0:33:55Not good news. Expensive to fix.
0:33:58 > 0:34:01# There's a problem at the office
0:34:01 > 0:34:04# He can't seem to solve
0:34:06 > 0:34:10# There's a problem at the office
0:34:10 > 0:34:14# We need to talk about. #
0:34:14 > 0:34:19Well, not a great start. But when looking past the nasty rot,
0:34:19 > 0:34:24there's a large opening on the ground floor area with a handy kitchen unit at the back.
0:34:26 > 0:34:28There are two ways to get to the first floor.
0:34:28 > 0:34:31Through this hatch or by the rear staircase.
0:34:31 > 0:34:35There are two toilets at the top of the stairs. That's the route I'm taking.
0:34:38 > 0:34:43Whoa! That's a nice surprise. A really big-sized space up here.
0:34:43 > 0:34:50Here's the top side of all that dry rot and damaged ceiling.
0:34:50 > 0:34:52That's where the water's come in.
0:34:52 > 0:34:55But a big space. A few things I see straightaway.
0:34:55 > 0:34:58A major part of it these pillars.
0:34:58 > 0:35:01They form a serious part of the structure of the building
0:35:01 > 0:35:06and whatever you do with this internal space, you have to look at how to get rid of those.
0:35:06 > 0:35:08They're terribly in the way.
0:35:08 > 0:35:10A big space. What are you going to do with it?
0:35:10 > 0:35:14You could try and renovate it as a commercial unit.
0:35:14 > 0:35:18But I think the money in this one is to think about converting to flats.
0:35:18 > 0:35:21It's a great location, close to the heart of the action.
0:35:21 > 0:35:25With some clever playing around and clever designs
0:35:25 > 0:35:28you could get four, five, maybe even six flats in here.
0:35:28 > 0:35:30Now it's interesting!
0:35:33 > 0:35:36But any investor thinking of converting the property
0:35:36 > 0:35:43would require planning permission for this former office that went to auction guided at £59,000.
0:35:43 > 0:35:46There's an added bonus of a rear entrance
0:35:46 > 0:35:48so the opportunity here looks promising.
0:35:48 > 0:35:52What does a local estate agent think of the chances of getting
0:35:52 > 0:35:54all-important planning consent?
0:35:54 > 0:35:57The prospect for any buyer to consider
0:35:57 > 0:36:01converting to residential would need to take a value judgement.
0:36:01 > 0:36:04If you look at the adjoining properties here,
0:36:04 > 0:36:07they are converted lofts and residential
0:36:07 > 0:36:10so there is a precedent already for apartments.
0:36:10 > 0:36:14It's worthwhile speaking to the planners what their view is for converting
0:36:14 > 0:36:18and I think it's likely it would be favourable
0:36:18 > 0:36:22as they are endeavouring to make this zone more residential.
0:36:22 > 0:36:26Good news. But what would be the best use of this space?
0:36:26 > 0:36:30At present, it's two floors. Looking at adjoining properties,
0:36:30 > 0:36:34there's a possibility of three or even four, in view of the height.
0:36:34 > 0:36:40But I would be thinking in terms of having good quality spacious apartments,
0:36:40 > 0:36:42perhaps one on each floor.
0:36:42 > 0:36:46What sort of money could you make if you went down that route?
0:36:47 > 0:36:51In my opinion, if this was converted to three spacious apartments,
0:36:51 > 0:36:57each apartment would be worth in the region of £145,000 each.
0:36:57 > 0:36:59- And rental income?- Each apartment
0:36:59 > 0:37:05would command a rental figure of 500 to £600 per calendar month.
0:37:05 > 0:37:10What about the valuation if the property was just renovated and left as an office?
0:37:10 > 0:37:14If this was renovated as offices,
0:37:14 > 0:37:20to modern standards, the realisation value would be in the region of £200,000.
0:37:20 > 0:37:22So, some work to be done to sort this place out.
0:37:22 > 0:37:25But quite a lot of potential with this building.
0:37:25 > 0:37:29Would you keep it as a commercial unit or convert it to flats?
0:37:29 > 0:37:32Let's see what the person who bought it decided to do
0:37:32 > 0:37:34when it went to auction.
0:37:34 > 0:37:36Now we go on to Lot 20.
0:37:36 > 0:37:41The vacant office premises in need of refurbishment.
0:37:41 > 0:37:43Approximately 2,000 square feet.
0:37:43 > 0:37:47Two miles from the city centre. Ideal location.
0:37:47 > 0:37:50Can I see 60 to get on?
0:37:50 > 0:37:5260 I'm bid, at the back. Thank you.
0:37:52 > 0:37:54Can I see two now?
0:37:54 > 0:37:57Two. Your bid, sir, at 62,000.
0:37:57 > 0:37:59At 62. I'll take three, then. 63.
0:37:59 > 0:38:01Fresh bid at four.
0:38:01 > 0:38:0265 standing in the back.
0:38:02 > 0:38:0666, thank you. At 67 standing in the back.
0:38:06 > 0:38:0968 I'm bid. Nine I'm bid.
0:38:09 > 0:38:12At 69. Fill it up. 70, now. 70 I'm bid.
0:38:12 > 0:38:15At 70 and one if you like. 71.
0:38:15 > 0:38:20Two, can I? Two. 72. 73 standing in the back.
0:38:20 > 0:38:21Four. 74.
0:38:21 > 0:38:25Gentleman on the steps. I've got him. 75.
0:38:25 > 0:38:29And six. 76. Seven on the steps.
0:38:29 > 0:38:32At seven. Eight. 78. Against you. Nine on the steps.
0:38:32 > 0:38:35At 79. Fill it up. 80, will you sir?
0:38:35 > 0:38:3780 I'm bid. One is bid.
0:38:37 > 0:38:4081 on the steps. Two. 82.
0:38:40 > 0:38:45The gentleman on the steps shouted 90. That's the way to do it!
0:38:45 > 0:38:47At 90. You heard the bid.
0:38:47 > 0:38:4992. Thank you. At 92.
0:38:49 > 0:38:52Four. 96. There we are.
0:38:52 > 0:38:54Eight, can I? Eight.
0:38:54 > 0:38:5798. 100, then? 100 I'm bid.
0:38:57 > 0:39:01At 100 on the steps. And two, will you sir? Or you?
0:39:01 > 0:39:03Two. At 102.
0:39:03 > 0:39:04110.
0:39:04 > 0:39:08At 110 I'm bid. 12, if you like, sir.
0:39:08 > 0:39:10At 110 on the steps.
0:39:10 > 0:39:1512, either of you? He's driven you out. I didn't think you'd let him do that.
0:39:15 > 0:39:19Have you all done at £110,000?
0:39:19 > 0:39:22It's yours, sir. Your number, please?
0:39:23 > 0:39:24What an auction!
0:39:24 > 0:39:28That determined bidder who wasn't going to give up was Barry,
0:39:28 > 0:39:31who paid 110,000.
0:39:31 > 0:39:34He's run his own lettings agency in Cardiff for over 10 years.
0:39:34 > 0:39:37I met up with him to find out his plans.
0:39:39 > 0:39:42Barry, congratulations. Well done.
0:39:42 > 0:39:44So why did you want to buy this place?
0:39:44 > 0:39:47- To make some money. - OK. In a nutshell.- Yes.
0:39:47 > 0:39:54- How will you do that? - We plan to convert it from a derelict office building
0:39:54 > 0:39:58to six modern one-bedroomed flats
0:39:58 > 0:40:01which should be worth in the region of 80 to 85,000 each.
0:40:01 > 0:40:05The build should come in at around 200,000
0:40:05 > 0:40:06with disbursements.
0:40:06 > 0:40:08So there's a hefty profit in that.
0:40:08 > 0:40:13You paid quite a lot over the guide price, but you obviously felt it was worth it.
0:40:13 > 0:40:17I'd inspected the property before, we'd done some figures.
0:40:17 > 0:40:20I thought we could get an extra floor in above.
0:40:20 > 0:40:24We spoke to planning. Planning are not averse to going up a floor.
0:40:24 > 0:40:27- So we're actually trying for eight flats.- Eight? Wow.
0:40:27 > 0:40:31We don't expect to get it, but you've got to try! So.
0:40:31 > 0:40:34- Four, six, eight flats. Perfect. - Right.
0:40:34 > 0:40:36Tell me about you. Is this something you do?
0:40:36 > 0:40:43Yeah, I do a little bit. I've got 20 investment properties I let out.
0:40:43 > 0:40:47- I run an estate agent's, with four Cardiff branches.- Wow.
0:40:47 > 0:40:50So everything I do is surrounding property.
0:40:50 > 0:40:54The plans that Barry's architect has submitted
0:40:54 > 0:40:56are for two flats on each of the current floors.
0:40:56 > 0:41:00They hope to add one or even two further floors
0:41:00 > 0:41:03if their grand plans for eight flats are accepted.
0:41:03 > 0:41:08So any idea of the timescale for what you're planning here?
0:41:08 > 0:41:12Fingers crossed, 12 months and it'll be up and running.
0:41:12 > 0:41:15- On the market.- Right.
0:41:15 > 0:41:18- Is the idea to sell on? - We'll see nearer the time.
0:41:18 > 0:41:22I might rent them out. There's a good return if we rent them out.
0:41:22 > 0:41:25What would you expect for a one-bed flat?
0:41:25 > 0:41:27I'd expect them to achieve about 475.
0:41:27 > 0:41:31Per calendar month. But we'll see nearer the time.
0:41:31 > 0:41:35Barry seems to know the local market very well.
0:41:35 > 0:41:39But the space here is restricted when it comes to the layout.
0:41:39 > 0:41:43My concern is that the flats could end up being quite narrow
0:41:43 > 0:41:46and getting enough natural light in could be an issue.
0:41:46 > 0:41:48This is an ambitious project he's taken on.
0:41:48 > 0:41:52So anything about the building which concerns you at all?
0:41:52 > 0:41:55Obviously the dry rot which I spotted when I came round.
0:41:55 > 0:41:59There is dry rot. Possibly structural issues.
0:41:59 > 0:42:03But because we're ripping it apart, we're raising the roof,
0:42:03 > 0:42:07we're starting again, so it doesn't make much difference.
0:42:07 > 0:42:13- Have you had plans already drawn up? - Yes.- Shall we take a look? - Yes.- After you.
0:42:14 > 0:42:20So Barry's bought the office space and has a clear idea of what he's got planned for it.
0:42:20 > 0:42:25He's done his sums so he can see this could be a real money-spinner.
0:42:25 > 0:42:28- Talk me through it. This is the front elevation.- Yes.
0:42:28 > 0:42:32We've got four floors and eight flats.
0:42:32 > 0:42:35We don't really expect to get eight. We expect planning for six.
0:42:35 > 0:42:39- We'll see.- So if you get planning for six, you'll build one extra floor,
0:42:39 > 0:42:42- and if it's eight, you'll add two floors?- Yes.
0:42:42 > 0:42:46We've got four floors, two flats on each floor.
0:42:46 > 0:42:48Each flat has to be quite long and thin
0:42:48 > 0:42:52but we're restricted to the shape of the existing plot.
0:42:52 > 0:42:56One thing that strikes me is lack of light.
0:42:56 > 0:42:59How will you get natural light in?
0:42:59 > 0:43:01You've got windows at the front
0:43:01 > 0:43:04but a dark area in the middle near the shower room.
0:43:04 > 0:43:09We don't need as much light in these areas as we do in the living room and bedroom.
0:43:09 > 0:43:13So we'll put these rooms at the front and rear to make sure they get adequate light.
0:43:13 > 0:43:18The bathroom doesn't need any light, so we've put it at the darkest spot.
0:43:18 > 0:43:22- We may borrow some light from the bedrooms.- Right.
0:43:22 > 0:43:27But it's not an issue at this stage. Get it through planning and take it from there.
0:43:27 > 0:43:30- Good luck with that. Congratulations.- Thank you.
0:43:30 > 0:43:32- We look forward to seeing how you get on.- Good man.
0:43:32 > 0:43:38So, Barry on for potentially quite a big profit with this project.
0:43:38 > 0:43:40Still a few hurdles to cross.
0:43:40 > 0:43:45One, planning permission, and two, I'm not sure about the design of the flats.
0:43:45 > 0:43:48Will they be what people want to buy?
0:43:48 > 0:43:51Find out how he gets on later in the show.
0:43:54 > 0:44:00I wonder if our buyers' plans have turned out OK or if there have been problems?
0:44:00 > 0:44:05Time has passed. Now is the day of reckoning. Let's go back and reveal all.
0:44:08 > 0:44:11We return now to Plaistow in east London
0:44:11 > 0:44:16where Daniel bought this derelict mid-terrace property for 161,000.
0:44:16 > 0:44:21He runs a recruiting company and has several investment properties in west London.
0:44:21 > 0:44:25He had recently decided to increase his portfolio in the East End.
0:44:32 > 0:44:38He bought this house in the property danger zone without looking inside first.
0:44:38 > 0:44:42When I came in the first time, I have to admit, the place was a shambles.
0:44:42 > 0:44:46I did put my hands to my head and said, "Oh, what have I done?"
0:44:46 > 0:44:51I went around, looked upstairs, tried to look for the positive things.
0:44:51 > 0:44:54The best thing was there's two good rooms upstairs.
0:44:55 > 0:44:58It's now three and a half months later.
0:44:58 > 0:45:02Daniel's arranged to show us around the completed property.
0:45:05 > 0:45:06Wow!
0:45:06 > 0:45:11The crumbling concrete has gone and the beautiful features of the house are restored.
0:45:16 > 0:45:19There are new windows, roof and door.
0:45:19 > 0:45:22Inside a front reception room has lost the chimney breast
0:45:22 > 0:45:26and a wall's been removed to create a lovely spacious living area.
0:45:30 > 0:45:33The former rear diner is now a classy kitchen...
0:45:37 > 0:45:42with work surfaces on two sides of the room and a pleasing pastel colour scheme.
0:45:43 > 0:45:47Originally when we purchased the property, we had two separate rooms.
0:45:47 > 0:45:52What I decided, as you can see, I took out this wall
0:45:52 > 0:45:59and we put a kitchen/diner to give it that liveable open air feeling.
0:45:59 > 0:46:04It turned out very nice and I'm very pleased with it, as you can see.
0:46:08 > 0:46:11Upstairs, Daniel's retained the two bedrooms.
0:46:14 > 0:46:16They're both good-sized doubles.
0:46:16 > 0:46:22And the property now has central heating plus replacement electrics and plumbing.
0:46:24 > 0:46:27It's really been a complete rip out and start again job.
0:46:29 > 0:46:32It really was terrible.
0:46:32 > 0:46:38We actually rewired, re-plumbed, new flooring, and re-plastered.
0:46:38 > 0:46:40It was a whole fit out.
0:46:41 > 0:46:44So there's now a cracking new kitchen.
0:46:44 > 0:46:51But what happened to that empty room at the back, a cross between a kitchen and a shower room!
0:46:51 > 0:46:53I decided to put the bathroom here
0:46:53 > 0:46:56and we put in a new door to the side.
0:46:56 > 0:47:01And then we put in this partitioning wall. The effect is lovely.
0:47:01 > 0:47:05On this East End project, Daniel used the same builders
0:47:05 > 0:47:08he's worked with on other properties in west London.
0:47:08 > 0:47:11And if the inside seemed a challenge,
0:47:11 > 0:47:14outside, the rear was something else!
0:47:14 > 0:47:19The garden was terrible. You couldn't get out into it. We didn't know what was at the back.
0:47:19 > 0:47:24But we went through and four skips, it's a well done job.
0:47:24 > 0:47:28I think I'll take my builders out tonight and congratulate them!
0:47:28 > 0:47:34Well deserved. But will the toast be to a refurbishment that stayed on budget?
0:47:34 > 0:47:38My original budget was 30,000.
0:47:38 > 0:47:41I came in, in total, at 32.
0:47:41 > 0:47:43The labour comes in at 13.
0:47:43 > 0:47:4812,000 for all the materials, plus the furniture, plus the kitchen.
0:47:48 > 0:47:547,000 for the additional, the solicitors,
0:47:54 > 0:47:56the interest up to date. So 32.
0:47:58 > 0:48:00Time to see if two local estate agents
0:48:00 > 0:48:02think it's money well spent.
0:48:03 > 0:48:08It's been done to a very high standard. I'm very impressed with the finish.
0:48:08 > 0:48:10The accommodation is very good.
0:48:10 > 0:48:13Two bedrooms, open-plan lounge and kitchen.
0:48:13 > 0:48:16It's done to a high specification.
0:48:16 > 0:48:19The bedrooms are very large. Two doubles.
0:48:19 > 0:48:22I think it would very well suit two sharers.
0:48:22 > 0:48:24The property has got a downstairs bathroom.
0:48:24 > 0:48:27In this area, it's not really a problem.
0:48:27 > 0:48:31Most Victorian terraces have ground-floor bathrooms. People expect it.
0:48:31 > 0:48:38Daniel paid £161,000 at the auction. His gross budget is sitting at 32,000,
0:48:38 > 0:48:42making a total outlay of £193,000.
0:48:42 > 0:48:45How much would local experts value the property at?
0:48:45 > 0:48:49I'd suggest this goes on the market for £220,000.
0:48:49 > 0:48:56I'd put this on the market for £210,000 to £215,000.
0:48:56 > 0:48:59That valuation range would generate
0:48:59 > 0:49:0317 to £27,000 pre-tax profit for Daniel.
0:49:03 > 0:49:05Oh! Lovely!
0:49:05 > 0:49:09That is very nice because I had targeted about 210.
0:49:09 > 0:49:12So that's lovely.
0:49:12 > 0:49:15A lovely little investment. I'm very pleased with that.
0:49:15 > 0:49:19Daniel's going to rent the property out, so how much could that generate?
0:49:20 > 0:49:26I would put this on the market for rental at £1,000 per month
0:49:26 > 0:49:30to 1,050 per calendar month.
0:49:30 > 0:49:34Rental per calendar month I'd say £1,100 per calendar month.
0:49:34 > 0:49:35I'm very pleased with that.
0:49:35 > 0:49:40Originally, I'd come in, looked at the area. It was about 950.
0:49:40 > 0:49:42So I'm very pleased with that.
0:49:43 > 0:49:48Daniel's decision to buy property in the east of London was a shrewd decision.
0:49:48 > 0:49:51But initially he had his doubts!
0:49:53 > 0:49:56Those first two weeks, you think, "God, what have I done?"
0:49:56 > 0:50:04Feels like a Jekyll and Hyde experience. First it was a rubbish place and now it's brought to life.
0:50:04 > 0:50:08It's a great experience. I would tell anyone to just try it.
0:50:08 > 0:50:09It's great!
0:50:15 > 0:50:20We're returning to Cardiff, where earlier, Barry, who runs a local lettings agency,
0:50:20 > 0:50:24bought this office block for £110,000,
0:50:24 > 0:50:27£51,000 over the guide price.
0:50:31 > 0:50:34The property had severe damp problems
0:50:34 > 0:50:36and would need a total refurbishment.
0:50:36 > 0:50:39Barry was going to apply for planning permission
0:50:39 > 0:50:43to change the property from commercial to residential use.
0:50:43 > 0:50:47You paid a lot over the guide price, but you obviously felt that was worth it.
0:50:47 > 0:50:51I'd inspected the property. We'd done some figures.
0:50:51 > 0:50:54I thought we could get an extra floor in above.
0:50:54 > 0:50:59We spoke to planning. Planning are not averse to going up a floor.
0:50:59 > 0:51:02- So we're trying for eight flats. - Eight? Wow.
0:51:02 > 0:51:05We don't expect to get it, but you've got to try!
0:51:05 > 0:51:08It's now 13 months later.
0:51:10 > 0:51:16And Barry has successfully converted the former offices into residential accommodation.
0:51:18 > 0:51:21A new floor has been added with dormer windows.
0:51:22 > 0:51:27There are a total of six narrow flats, two on each floor.
0:51:29 > 0:51:32The ground floor is divided in half.
0:51:32 > 0:51:35Both flats have a kitchen/diner at the front...
0:51:36 > 0:51:38..a bedroom at the rear...
0:51:41 > 0:51:43..and a bathroom in the middle.
0:51:44 > 0:51:48The three doors on the street lead to a communal staircase
0:51:48 > 0:51:51for the upper floors and the two ground-floor flats.
0:51:51 > 0:51:54We met Barry in the left-hand one.
0:51:54 > 0:52:00We're in the ground floor flat. The kitchen layout is unique to the flat.
0:52:00 > 0:52:03We had some issues getting the right layout.
0:52:03 > 0:52:06Originally the kitchen came around the corner
0:52:06 > 0:52:08and returned on this wall.
0:52:08 > 0:52:11So there was no separation between the kitchen and the lounge.
0:52:11 > 0:52:17So we amended the kitchen as it was going in and moved the electrics to the other side.
0:52:17 > 0:52:20We think it's far improved.
0:52:21 > 0:52:24The severe damp issues in the building have been cured
0:52:24 > 0:52:27and the whole building was refurbished.
0:52:27 > 0:52:32Access to the four other flats is via this communal staircase.
0:52:34 > 0:52:37The room layout on the first floor is the same
0:52:37 > 0:52:41but Barry's added touches to each flat to personalise them.
0:52:43 > 0:52:48Structurally we've gone up a floor, from two storeys to three storeys.
0:52:48 > 0:52:53We were hoping for four storeys, but planning weren't too keen.
0:52:53 > 0:52:58We think we could have perhaps got planning on appeal,
0:52:58 > 0:53:01but we didn't want to delay. It would have taken 12 to 18 months.
0:53:01 > 0:53:04We made the call to carry on with six flats.
0:53:04 > 0:53:08At the top of the building are the last two flats.
0:53:10 > 0:53:13Here we are on the top floor.
0:53:13 > 0:53:15Flats either side.
0:53:15 > 0:53:19The layouts are all the same per side.
0:53:19 > 0:53:22We have light tunnels in each flat,
0:53:22 > 0:53:26getting light into the hallways of each flat.
0:53:26 > 0:53:28On this side we have a door.
0:53:28 > 0:53:32On the other side, no door.
0:53:32 > 0:53:34It's still en-route from Amsterdam.
0:53:34 > 0:53:41Well, the project has overrun a little due to the damp issues and delivery timescales.
0:53:41 > 0:53:44- So how much longer will it take? - We're not far away.
0:53:44 > 0:53:48Probably another four weeks. The heaters have arrived
0:53:48 > 0:53:50and are on the wall.
0:53:50 > 0:53:53The doors have been an issue with a three-month delay.
0:53:53 > 0:53:56But four weeks and we should be out.
0:53:56 > 0:53:59So, six flats almost finished in just about one year.
0:53:59 > 0:54:03We always knew the building was tight. Very narrow.
0:54:03 > 0:54:06But they're pretty much as we expected.
0:54:06 > 0:54:10We've got fairly wide kitchen/lounges to the front.
0:54:10 > 0:54:15The bedrooms are tight at the rear. The bathrooms had to go in the middle
0:54:15 > 0:54:19to utilise every single inch of these flats cos they're quite compact.
0:54:19 > 0:54:24How much has the conversion cost? Barry paid £110,000 at auction.
0:54:24 > 0:54:27But did he stick to his budget?
0:54:27 > 0:54:28Our budget was 200,000.
0:54:28 > 0:54:32We are roughly, give or take, at 200,000
0:54:32 > 0:54:37so the only fees left then would be to sell.
0:54:37 > 0:54:41Time to get the opinions of two local property experts.
0:54:41 > 0:54:45What will they think of the six apartments created here?
0:54:45 > 0:54:49First impression coming down the street, fantastic.
0:54:49 > 0:54:52It's in-keeping with the style of the street.
0:54:52 > 0:54:55It's got the dormers, three-storey,
0:54:55 > 0:54:58and it blends in well with the street scene.
0:54:58 > 0:55:03Considering the square footage isn't enormous, the layout with the open plan area,
0:55:03 > 0:55:07separate bedroom and bathroom is quite good.
0:55:07 > 0:55:12Very clever use of portholes in the penthouse apartments.
0:55:12 > 0:55:14I think the finish is very good.
0:55:14 > 0:55:17The bathrooms are a very high standard.
0:55:17 > 0:55:20The bedrooms are narrow. Although they're long,
0:55:20 > 0:55:23putting furniture in might be a tight squeeze.
0:55:23 > 0:55:28Although Barry has a portfolio of other buy-to-let properties,
0:55:28 > 0:55:31his plan is to sell this development.
0:55:31 > 0:55:36With his budget sitting at £200,000 on top of the £110,000 paid at auction,
0:55:36 > 0:55:41he'll be looking for more than 310,000 to see any profit here.
0:55:41 > 0:55:44What's the likely valuation of the individual flats?
0:55:46 > 0:55:51In my opinion, the value of the ground floor flat is £95,000.
0:55:51 > 0:55:58The first and second floor apartments, the value of those is between 95,000 and £100,000.
0:55:58 > 0:56:01I think these properties would re-sell individually
0:56:01 > 0:56:05between 95 and £99,950.
0:56:05 > 0:56:08If all six flats were sold for 95,000
0:56:08 > 0:56:12that would realise £570,000.
0:56:12 > 0:56:19That's a healthy £260,000 gross profit before selling expenses and taxes.
0:56:20 > 0:56:23I'm ecstatic. Amazing.
0:56:23 > 0:56:26But you've got to be realistic in these times.
0:56:26 > 0:56:31If we gained an average of 85 per flat, we'd be more than happy.
0:56:31 > 0:56:35So what's next? Will he add to his buy-to-let portfolio
0:56:35 > 0:56:38or do another refurbishment to sell on?
0:56:38 > 0:56:43We have another one on the go. Nine much larger flats around the corner.
0:56:43 > 0:56:48We've got planning in for others. So it's certainly a good sideline.
0:56:50 > 0:56:54We hope you've enjoyed watching the properties on today's show.
0:56:54 > 0:56:59- We'll have more thrills and spills from the auction room next time! - See you.- Bye!- Bye!
0:57:20 > 0:57:23Subtitles by Red Bee Media Ltd