0:00:02 > 0:00:05Hello! It's difficult to judge the property market these days,
0:00:05 > 0:00:07because you can't always believe what you read.
0:00:07 > 0:00:11One of the best ways to find out what's going on is to see for yourself,
0:00:11 > 0:00:15and one of the best ways to do that is to visit an auction.
0:00:40 > 0:00:42A huge range of properties sell under the hammer,
0:00:42 > 0:00:46so why not go to your local auction room and see what catches your eye?
0:00:46 > 0:00:48You might be surprised by the prices,
0:00:48 > 0:00:52and here's what got the bidders going on today's programme.
0:00:52 > 0:00:58In Devon, the layout of this cottage is really getting on my nerves.
0:00:58 > 0:01:03Well, upstairs, and the quirkiness is starting to get a bit annoying.
0:01:04 > 0:01:10From the outside, this ground-floor flat in London doesn't look the most glamorous I've ever seen.
0:01:10 > 0:01:13But look what you get on the inside!
0:01:13 > 0:01:17And this house in Lancashire needs some love and attention.
0:01:17 > 0:01:20Yes, it is in a right old state.
0:01:20 > 0:01:22Certainly you'll have to do redecoration.
0:01:22 > 0:01:25What do you expect for your money?
0:01:25 > 0:01:27All these properties have been sold at auction.
0:01:27 > 0:01:30We find out who bought them and for how much
0:01:30 > 0:01:32- when they went under the hammer. - Sir.
0:01:35 > 0:01:38This is Lympstone in Devon,
0:01:38 > 0:01:41an absolutely gorgeous little village
0:01:41 > 0:01:44on the estuary of the River Exe, about three miles from the sea.
0:01:44 > 0:01:47It's got character, it's got history,
0:01:47 > 0:01:50but it's also very much alive, so I'm really excited
0:01:50 > 0:01:52about the property that I'm here to see.
0:01:52 > 0:01:55Lympstone is only ten miles from Exeter,
0:01:55 > 0:01:58and is one of Devon's popular tourist spots.
0:01:58 > 0:02:00But it's also a thriving working village,
0:02:00 > 0:02:03both on and offshore.
0:02:03 > 0:02:06# Oh, you crawled
0:02:06 > 0:02:09# Out of the sea
0:02:09 > 0:02:13# Straight into my arms
0:02:14 > 0:02:17# Straight into my arms #
0:02:17 > 0:02:22Well, even on a cloudy day like today, and with the tide out,
0:02:22 > 0:02:25it is still spectacular. So what you'd hope for
0:02:25 > 0:02:30is a property that could make the most of these extraordinary views.
0:02:30 > 0:02:33And you know what? That's exactly what you've got.
0:02:33 > 0:02:36This was what was up for auction. 120,000 quid.
0:02:36 > 0:02:40No parking, but, hey, the location couldn't be better.
0:02:41 > 0:02:43And, with those uninterrupted views,
0:02:43 > 0:02:47who wouldn't be swept away by this place?
0:02:47 > 0:02:52# But I can't help
0:02:52 > 0:02:56# Falling in love
0:02:56 > 0:02:59# With you...
0:02:59 > 0:03:03The areas to the front and to the side are public,
0:03:03 > 0:03:05and there's no garden to speak of,
0:03:05 > 0:03:09but you do have the whole of that estuary as your playground.
0:03:09 > 0:03:12# Like a river flows
0:03:12 > 0:03:16# Surely to the sea
0:03:16 > 0:03:19# Darling, so it goes
0:03:19 > 0:03:22# Some things
0:03:22 > 0:03:25# Are meant to be #
0:03:26 > 0:03:28As you might have gathered from the outside,
0:03:28 > 0:03:32the cottage is...well, a bit of a hotch-potch, to be honest,
0:03:32 > 0:03:35added on to over the years, I imagine.
0:03:35 > 0:03:38This bit here is, I guess, a living area,
0:03:38 > 0:03:42then you go through to what I imagine is the oldest part,
0:03:42 > 0:03:46underneath this fairly low archway into this anteroom here.
0:03:46 > 0:03:48You got stairs up to two bedrooms there,
0:03:48 > 0:03:52you got another bedroom there, and you got this other bit
0:03:52 > 0:03:55kind of splintering off to the front of the property.
0:03:55 > 0:03:57All very strange!
0:03:57 > 0:04:00'The property feels like a collection of add-ons
0:04:00 > 0:04:03'to what was perhaps once a beach house.
0:04:03 > 0:04:08It's full of odd little extensions here, there and everywhere.
0:04:08 > 0:04:12The structure seems sound, but I think it's the kind of place
0:04:12 > 0:04:16that really needs to have a survey done just in case.
0:04:16 > 0:04:18And on the ground floor, through the back,
0:04:18 > 0:04:21the most bizarre aspect is still to come.
0:04:23 > 0:04:25HE CHUCKLES
0:04:25 > 0:04:28You got bathroom there. It's huge, actually,
0:04:28 > 0:04:32for the size of the place, at this jaunty kind of angle.
0:04:32 > 0:04:36And then through and up these steps to the very rear of the property,
0:04:36 > 0:04:40where you've got the kitchen, clearly in need to total renovation,
0:04:40 > 0:04:43whatever. The disappointing thing is...
0:04:43 > 0:04:47Well, the key thing is, this is where your view is!
0:04:47 > 0:04:50This is the most marvellous part of the house,
0:04:50 > 0:04:52and yet so little of the property is situated here.
0:04:52 > 0:04:56You've got to try and bring the rest of the property forward,
0:04:56 > 0:04:59and that is going to need a major rethink.
0:04:59 > 0:05:03But how much or how little structural work takes place here
0:05:03 > 0:05:06doesn't just depend on personal taste
0:05:06 > 0:05:09and whether you think the layout's quirky or a total mess.
0:05:09 > 0:05:11The cottage is in a conservation area,
0:05:11 > 0:05:13so you wouldn't have the final say
0:05:13 > 0:05:16on what could or couldn't be done here.
0:05:21 > 0:05:25Well, upstairs, and the quirkiness is starting to get a bit annoying.
0:05:25 > 0:05:30Two bedrooms here, one at that side there.
0:05:30 > 0:05:33You got this disastrous little corridor.
0:05:33 > 0:05:36Very low ceilings here, with beams going across.
0:05:36 > 0:05:38This is the other bedroom. It's small.
0:05:38 > 0:05:41The cottage is starting to feel quite oppressive.
0:05:41 > 0:05:43You've got big cupboards in both bedrooms
0:05:43 > 0:05:48so maybe play around with that wall and create bigger bedrooms,
0:05:48 > 0:05:51and ditch the storage space. It goes without saying,
0:05:51 > 0:05:54things like the windows, cute though this is...
0:05:54 > 0:05:57- HE LAUGHS - ..they all need replacing.
0:05:57 > 0:06:01I'm struggling to figure out how you could improve this place
0:06:01 > 0:06:06without doing some fairly major internal modifications.
0:06:07 > 0:06:10That would mean a healthy renovation budget
0:06:10 > 0:06:12on top of the purchase price.
0:06:12 > 0:06:16What does the local property expert from the auction house who sold it
0:06:16 > 0:06:21make of this cottage, that was guided at £120,000?
0:06:22 > 0:06:25My first thoughts of this property
0:06:25 > 0:06:27are to, obviously, completely renovate it,
0:06:27 > 0:06:31reconfigure it, because you only have two bedrooms upstairs.
0:06:31 > 0:06:34The part at the rear of the building, which overlooks the estuary,
0:06:34 > 0:06:38could that become two-storey and create further accommodation above?
0:06:39 > 0:06:41How much could that work cost?
0:06:44 > 0:06:47It's from, probably, £90,000 to £100,000
0:06:47 > 0:06:49regenerating it, developing it,
0:06:49 > 0:06:53and its end zone of what it might be worth when it is done
0:06:53 > 0:06:55could be somewhere in the 340, 350 mark,
0:06:55 > 0:06:58just purely cos that view is priceless.
0:06:58 > 0:07:01A big budget would be needed, but the rewards could be great,
0:07:01 > 0:07:05as long as all the necessary planning permission was granted.
0:07:05 > 0:07:08But what if the buyer decided to rent it out as it stands?
0:07:08 > 0:07:11Properties with estuary views in Lympstone
0:07:11 > 0:07:15could rent out in the region of £900 to £1,000 per calendar month.
0:07:15 > 0:07:18Well, you know what - this is a pretty special project,
0:07:18 > 0:07:22a chance to restore a wonderful old cottage
0:07:22 > 0:07:26in this lovely village, and add value to boot.
0:07:26 > 0:07:28It really is a developer's dream.
0:07:28 > 0:07:31Let's see who spotted the opportunity at the auction.
0:07:31 > 0:07:35Who's going to say to us, er... Guide, 120. Bang, straight in.
0:07:35 > 0:07:37Won't start less. He knows.
0:07:37 > 0:07:4022. 124. There's three of you.
0:07:40 > 0:07:43126. 128 is down here. This is where our focus is.
0:07:43 > 0:07:46128. 130.
0:07:46 > 0:07:49132. 134.
0:07:49 > 0:07:52136. 138.
0:07:52 > 0:07:53140.
0:07:53 > 0:07:57At 142. 144.
0:07:57 > 0:07:59146.
0:07:59 > 0:08:00148.
0:08:00 > 0:08:03150. And at 152.
0:08:03 > 0:08:05152. 154.
0:08:05 > 0:08:08156. 158...or not. 158.
0:08:08 > 0:08:11160. 161.
0:08:11 > 0:08:14162. 162 I've got.
0:08:14 > 0:08:15163, sir, or not?
0:08:15 > 0:08:18163. 164.
0:08:18 > 0:08:21165? No?
0:08:21 > 0:08:24164. You're in, sir. 164.
0:08:24 > 0:08:26165. 165 is sat now, sir.
0:08:26 > 0:08:29166, or not? 166.
0:08:29 > 0:08:30167.
0:08:30 > 0:08:32168.
0:08:32 > 0:08:34169.
0:08:34 > 0:08:37170. 171.
0:08:38 > 0:08:39172.
0:08:39 > 0:08:42175. Yes, sir. 175.
0:08:42 > 0:08:45At 175.
0:08:45 > 0:08:47At 175.
0:08:47 > 0:08:50At 175 once.
0:08:50 > 0:08:54At 175 second time. Third and last time. You sure and done?
0:08:54 > 0:08:56All out at 175.
0:08:56 > 0:08:57Sir.
0:08:57 > 0:09:02The man who beat off all the competition was Nick,
0:09:02 > 0:09:06with his successful bid of 175,000.
0:09:06 > 0:09:09He lives in Northampton with his wife
0:09:09 > 0:09:12and son aged 18 and daughter aged 20.
0:09:12 > 0:09:16He works as a property developer of a specific kind,
0:09:16 > 0:09:19developing GPs' surgeries in England and Wales.
0:09:26 > 0:09:30I caught up with Nick back at the cottage
0:09:30 > 0:09:33to find out if he had any remedies for this property's ills.
0:09:38 > 0:09:41- Nick, very nice to meet you. Congratulations.- Thanks very much.
0:09:41 > 0:09:45Why did you want to buy this place? It's not obvious.
0:09:45 > 0:09:47Well, in a word, the view.
0:09:47 > 0:09:49- Yeah.- The view is knockout,
0:09:49 > 0:09:53and I actually saw the details of the property
0:09:53 > 0:09:56only four days before the auction, so I didn't have time
0:09:56 > 0:09:59to actually look round it before the auction,
0:09:59 > 0:10:01but bought it because of the view.
0:10:01 > 0:10:04So... Wow! Did you know Lympstone, then?
0:10:04 > 0:10:09Yes. I've had a boat on the mooring just literally opposite here
0:10:09 > 0:10:11for about three years, so I know the village very well.
0:10:11 > 0:10:15We actually use the slipway that is directly outside here
0:10:15 > 0:10:20to get access to the boat, so we've been up and down this slipway
0:10:20 > 0:10:23from the boat to the pub and back again many times,
0:10:23 > 0:10:27and we've always said that if this property came on the market, we should go for it.
0:10:27 > 0:10:30So, what did you think the first time you came inside?
0:10:30 > 0:10:34Er, I was a little surprised. I expected it to be fairly poor,
0:10:34 > 0:10:37but, yeah, it's quite bad in areas.
0:10:37 > 0:10:40I've seen a survey since I bought the property,
0:10:40 > 0:10:44and the survey said that there's only one wall that's worth keeping.
0:10:44 > 0:10:48- Right. Which is which wall? - That wall.
0:10:48 > 0:10:50Aha! And the rest of them?
0:10:50 > 0:10:53The rest should be taken down and rebuilt, including the roof,
0:10:53 > 0:10:56the windows, the plumbing and the electrics.
0:10:56 > 0:10:58- Apart from that, it's perfect.- Yeah.
0:10:58 > 0:11:02# It'll feel just like starting over
0:11:02 > 0:11:06# Over
0:11:06 > 0:11:08# Starting over #
0:11:11 > 0:11:14So, have you had preliminary discussions with the planners?
0:11:14 > 0:11:16- No, I haven't.- Oh.- No, I haven't.
0:11:16 > 0:11:20OK. That's going to be an important phone call, isn't it?
0:11:20 > 0:11:23It is, but again I'm not too concerned about that,
0:11:23 > 0:11:26because, short term, we're going to do the property up
0:11:26 > 0:11:30so that we can use it, and if, you know, two years becomes four years,
0:11:30 > 0:11:32then, that's life, really.
0:11:32 > 0:11:34# That's life
0:11:34 > 0:11:36# That's life
0:11:36 > 0:11:38# That's what all the people say #
0:11:38 > 0:11:43Nick bought the cottage with that view and its location in mind,
0:11:43 > 0:11:46so he and his family can enjoy it for holidays.
0:11:46 > 0:11:48But he also bought it with the intention
0:11:48 > 0:11:51of potentially making it a permanent home,
0:11:51 > 0:11:55as his job may move to Bristol, less than 100 miles away.
0:11:55 > 0:11:58Meanwhile, what's the initial plan for the makeover?
0:11:59 > 0:12:03Well, the first stage is to literally get pots of paint down here
0:12:03 > 0:12:06and lots of willing helpers to redecorate,
0:12:06 > 0:12:09and we'll put new floor coverings down,
0:12:09 > 0:12:12put the furniture down and make it habitable.
0:12:12 > 0:12:14What about the kitchen and the bathroom?
0:12:14 > 0:12:18The bathroom is not too bad. It does need decorating,
0:12:18 > 0:12:21but the plumbing looks to be OK. The kitchen does need to be done.
0:12:21 > 0:12:24How much are you going to set aside for doing that?
0:12:24 > 0:12:28- A couple of thousand pounds. - And that will be finished when?
0:12:28 > 0:12:31I would expect to do that by... If we get some rainy weekends,
0:12:31 > 0:12:34- on two or three rainy weekends. - Really? OK.
0:12:34 > 0:12:36And then get here and start enjoying it.
0:12:36 > 0:12:39- Correct. - Phase two, obviously, big plans.
0:12:39 > 0:12:42Potentially knock it down, build something else in its place.
0:12:42 > 0:12:46Any ideas for how much that's going to cost, and the timescale for it?
0:12:47 > 0:12:50I think timescale would be very dependent
0:12:50 > 0:12:52on the architect coming up with a design that we like.
0:12:52 > 0:12:56There'll be a lot of to-ing and fro-ing and revision of that.
0:12:56 > 0:12:59And then consultation with the planners,
0:12:59 > 0:13:02with, also, the parish council and the town council
0:13:02 > 0:13:06to see what they would want to see in what is a very prominent position
0:13:06 > 0:13:11within the village. Then it's a question of putting a planning application in
0:13:11 > 0:13:14and running through that period, which could be three, four months,
0:13:14 > 0:13:19to actually get a decision, and then we'll need to get the builders
0:13:19 > 0:13:21and build it out,
0:13:21 > 0:13:24and I would say we're probably looking at building
0:13:24 > 0:13:26two summers' time.
0:13:26 > 0:13:29If it all goes to plan, once all the work's completed,
0:13:29 > 0:13:32Nick and his wife will be able to move in permanently
0:13:32 > 0:13:34to enjoy the tranquil views
0:13:34 > 0:13:37and a mere hop, skip and jump to their boat.
0:13:37 > 0:13:41Any thoughts about renting it out as a holiday let?
0:13:41 > 0:13:43Not really, no. I'd rather not do that.
0:13:43 > 0:13:47Certainly friends and family, yes, not a problem.
0:13:47 > 0:13:50But I don't want to go down the holiday-let thing.
0:13:50 > 0:13:54It's too far to travel down if somebody does something wrong.
0:13:54 > 0:13:57- Right. - And I don't want that hassle.- Right.
0:13:57 > 0:14:00- You've really fallen in love with this place.- Very much so!
0:14:00 > 0:14:02I can understand why.
0:14:02 > 0:14:05Whatever happens, good luck with all your plans.
0:14:05 > 0:14:07OK. Thank you very much indeed. Thank you.
0:14:07 > 0:14:11Let's be honest - this place was going to go either to a developer
0:14:11 > 0:14:14or somebody who just fell in love with it,
0:14:14 > 0:14:17and Nick certainly falls into that category.
0:14:17 > 0:14:19Yes, he has grand plans for the place,
0:14:19 > 0:14:23which I believe he may have some problems getting through with the planners.
0:14:23 > 0:14:26In the meantime, a quick lick of paint,
0:14:26 > 0:14:29and he's just going to enjoy it for what it is, a lovely little cottage
0:14:29 > 0:14:32in an amazing location. You can find out how he gets on
0:14:32 > 0:14:34later in the show.
0:14:37 > 0:14:40When it comes to desirable parts of London,
0:14:40 > 0:14:42Islington's pretty high on the list.
0:14:42 > 0:14:45And when it comes to desirable parts of Islington,
0:14:45 > 0:14:48Canonbury's very high on that list.
0:14:48 > 0:14:50Its gorgeous Georgian four-storey buildings
0:14:50 > 0:14:53attract homeowners and developers alike,
0:14:53 > 0:14:56and its closeness to the city makes it even more appealing.
0:14:56 > 0:14:58However, the property I'm here to see
0:14:58 > 0:15:01isn't as grand as many others round here.
0:15:03 > 0:15:06The guide was set at £325,000 -
0:15:06 > 0:15:09inexpensive, I'd say, for this part of North London.
0:15:09 > 0:15:13Well, here it is. It's a ground-floor garden flat
0:15:13 > 0:15:16in this block. Now, it may not be a Georgian lovely,
0:15:16 > 0:15:20but it does represent extremely good value on this square.
0:15:20 > 0:15:23Let's go inside and see what's on offer.
0:15:23 > 0:15:28A little bit grey on the outside, and it's in a conservation area.
0:15:28 > 0:15:30This, and the fact that it's leasehold,
0:15:30 > 0:15:35means the new owner may be limited on any external modifications they might want to make.
0:15:35 > 0:15:39But of course, you should never judge a book by its cover.
0:15:40 > 0:15:44I think we're all agreed that it is a bit of an ugly duckling outside.
0:15:44 > 0:15:47But look what you get on the inside!
0:15:47 > 0:15:51For starters, 900 square foot of space.
0:15:51 > 0:15:52So far, so good.
0:15:52 > 0:15:57Inside, you've got big, spacious rooms, loads of light coming in.
0:15:57 > 0:16:01This area here needs a bit of work. Probably get rid of this,
0:16:01 > 0:16:04update this area. You've got a cracking view
0:16:04 > 0:16:08out onto a little garden - but hey, you're in the centre of London!
0:16:08 > 0:16:12You've got some outside space! I think this flat is fantastic.
0:16:12 > 0:16:16It needs a bit of work, but it's certainly ticking all the right boxes for me.
0:16:18 > 0:16:22As a blank canvas, this place is really on the money.
0:16:22 > 0:16:25All three bedrooms are a good size,
0:16:25 > 0:16:29and the worst thing about it so far is the separate bathroom and toilet,
0:16:29 > 0:16:32although, of course, some people prefer it that way.
0:16:32 > 0:16:34Time to check out the kitchen.
0:16:36 > 0:16:38Mm, this kitchen is not knockout.
0:16:38 > 0:16:40I think it needs replacing.
0:16:40 > 0:16:43A good quality kitchen could add five to eight percent
0:16:43 > 0:16:47to the value of your home. The average spend on a kitchen
0:16:47 > 0:16:50is approximately six and a half grand,
0:16:50 > 0:16:54so I think it's a fantastic way to recoup on your investment.
0:16:54 > 0:16:58As it stands, it's a decent, usable kitchen,
0:16:58 > 0:17:01but to add value here, I think it could do with an overhaul
0:17:01 > 0:17:03to give it the wow factor.
0:17:05 > 0:17:08It's great to have some outside space in London,
0:17:08 > 0:17:11but there's one thing that might put some buyers off.
0:17:11 > 0:17:15This fence is only three foot, and here is a footpath
0:17:15 > 0:17:18and it runs right alongside. Now, my first job
0:17:18 > 0:17:22would be to change this fence, make it a lot higher,
0:17:22 > 0:17:26perhaps put some nice laurels or conifers on the inside,
0:17:26 > 0:17:28so you're looking out onto some greenery.
0:17:28 > 0:17:31Don't forget, this flat is leasehold,
0:17:31 > 0:17:34so the freeholder's permission will have to be sought
0:17:34 > 0:17:35before any changes are made.
0:17:36 > 0:17:39This flat has certainly got a lot going for it.
0:17:39 > 0:17:42Time to get some useful information from a local estate agent.
0:17:44 > 0:17:47Islington is vibrant, young. It's got a lot of boutique shops,
0:17:47 > 0:17:51bars and restaurants. It's a good location,
0:17:51 > 0:17:54good transport links and easy access to the city and the West End.
0:17:54 > 0:17:57'It would benefit from having a new kitchen, new bathroom,
0:17:57 > 0:18:01'a little bit of modernisation, new carpets throughout,
0:18:01 > 0:18:02'and some cosmetic work.'
0:18:02 > 0:18:04Apart from that, I think it's good to go.
0:18:05 > 0:18:08Bearing in mind the guide price of 325,000,
0:18:08 > 0:18:12how much could it be worth once renovated?
0:18:13 > 0:18:17This property would go on the market for £385,000 to £395,000.
0:18:17 > 0:18:21Many properties in this area are bought by investors,
0:18:21 > 0:18:25so what kind of rental income could this investment earn?
0:18:25 > 0:18:29This property would rent out for £1,950 per calendar month.
0:18:29 > 0:18:32I like this flat, and I love where it is.
0:18:32 > 0:18:35These properties are so popular with investors,
0:18:35 > 0:18:38and you can see why. Let's see who wanted this little earner
0:18:38 > 0:18:40as we go to auction.
0:18:43 > 0:18:46Not going to go below 300. 300 with you.
0:18:46 > 0:18:48305 down here. 310.
0:18:49 > 0:18:52Are you bidding? 310. 315.
0:18:52 > 0:18:54320 on the phone.
0:18:54 > 0:18:57325 in the room.
0:18:57 > 0:18:59330 on the phone.
0:18:59 > 0:19:01335 in the room.
0:19:01 > 0:19:04340 on the phone.
0:19:05 > 0:19:07345 in the room.
0:19:08 > 0:19:10350 on the phone.
0:19:12 > 0:19:14355 in the room.
0:19:14 > 0:19:16351.
0:19:18 > 0:19:20351 in the room. 352.
0:19:21 > 0:19:23353.
0:19:23 > 0:19:25354 on the phone.
0:19:26 > 0:19:28355 in the room.
0:19:28 > 0:19:30355, back in.
0:19:30 > 0:19:32356.
0:19:32 > 0:19:34357.
0:19:34 > 0:19:37358 on the phone.
0:19:37 > 0:19:40359. 360.
0:19:40 > 0:19:42361.
0:19:45 > 0:19:49360 to the phone. Anyone else at 360?
0:19:49 > 0:19:51First time, second time,
0:19:51 > 0:19:54- third and last... Where are we? - Straight there.- Where?
0:19:54 > 0:19:57- That bidder. - Hey, you're crafty! 361.
0:19:57 > 0:20:00New spot. 362.
0:20:02 > 0:20:04362.
0:20:04 > 0:20:06If not, 361 in the room.
0:20:06 > 0:20:08First time...
0:20:08 > 0:20:10Second time...
0:20:10 > 0:20:13Yes or no? 362.
0:20:13 > 0:20:16363. 364.
0:20:17 > 0:20:19365 in the room.
0:20:19 > 0:20:23Yeah? 365. 366 on the phone, yes?
0:20:23 > 0:20:26367 in the room.
0:20:27 > 0:20:29366 to the phone,
0:20:29 > 0:20:31first time, second time,
0:20:31 > 0:20:34third and last time. Have you all done?
0:20:34 > 0:20:36Sold to the phone, 366.
0:20:38 > 0:20:40The mystery phone bidder was actually Mo.
0:20:40 > 0:20:43She runs a property-developing business with her brother Sharwan.
0:20:43 > 0:20:45They manage a varied portfolio.
0:20:45 > 0:20:49I met up with them at their latest buy to hear their plans.
0:20:51 > 0:20:55- I didn't see you at the auction. Where were you?- Stuck in Belfast.
0:20:55 > 0:20:57Basically we'd booked a trip to see some friends,
0:20:57 > 0:21:00and we got to the airport at six in the morning,
0:21:00 > 0:21:03had planned to be back, but our flight was delayed.
0:21:03 > 0:21:06Oh! What happened? Did you have to phone the auction house
0:21:06 > 0:21:09- and get them to do a telephone bid? - We'd stayed in a hotel
0:21:09 > 0:21:12the night before, and we had to go back to the hotel
0:21:12 > 0:21:16- and, yeah, we were back in our... - Back in our pyjamas, actually,
0:21:16 > 0:21:20cos we'd had such an early start, so we got back into our pyjamas
0:21:20 > 0:21:24- and bid on the phone in pyjamas. - Have you bought this flat together?
0:21:24 > 0:21:27Is it a joint venture, or is it your flat?
0:21:27 > 0:21:31This is my flat, but actually I had a bid on another flat,
0:21:31 > 0:21:34and that's something we're buying together,
0:21:34 > 0:21:36so we're buying two in this development.
0:21:36 > 0:21:38Is this a brother-sister partnership?
0:21:38 > 0:21:42Yeah. We basically find properties and then do them up.
0:21:42 > 0:21:45This was one of the better places in Islington,
0:21:45 > 0:21:47and we've got some big plans for it.
0:21:47 > 0:21:51Mo currently lives in Birmingham, but wants a pad in London too,
0:21:51 > 0:21:53so she can be close to her family.
0:21:53 > 0:21:58She hasn't decided which of her two flat purchases she'll live in,
0:21:58 > 0:22:00and which she'll rent out,
0:22:00 > 0:22:03but they've got an impressive £40,000 budget
0:22:03 > 0:22:05to get this one into shape.
0:22:07 > 0:22:10Where the toilet is will be extended into a bathroom,
0:22:10 > 0:22:12all fully tiled.
0:22:12 > 0:22:15It's going to have that luxurious, modern, contemporary feel?
0:22:15 > 0:22:19Yeah. She wants a steam room in one of them, so possibly...
0:22:19 > 0:22:21She wants a steam room? Madam here?
0:22:21 > 0:22:23- Yes!- Tell me about that.
0:22:23 > 0:22:27Basically we've been looking at lots of different ideas and solutions,
0:22:27 > 0:22:31and my builders said, "Have you seen these steam cabinets?"
0:22:31 > 0:22:33"You don't have space to do one."
0:22:33 > 0:22:37So I made Sharwan look for one that would fit in the space,
0:22:37 > 0:22:41- and we've actually found one! - We might be able to get her a steam bath.
0:22:41 > 0:22:45A steam bath! Great if it's going to be your own home!
0:22:47 > 0:22:50But if Mo's going to rent this flat out,
0:22:50 > 0:22:53it might be a bit of a waste of money.
0:22:53 > 0:22:55Anything spectacular outside?
0:22:55 > 0:22:58I love the fact that you do have some outside space with this flat.
0:22:58 > 0:23:02I wanted to have a hot-water tub, but that isn't possible,
0:23:02 > 0:23:06so we can't have that. But our builder's a landscape gardener.
0:23:06 > 0:23:08The garden's going to be the last thing we do,
0:23:08 > 0:23:11depending on how much money we got left.
0:23:11 > 0:23:14Mo's going for a high-spec finish throughout,
0:23:14 > 0:23:17which is perhaps sensible in this affluent area.
0:23:17 > 0:23:21However, she could be in danger of personalising this place a bit too much.
0:23:21 > 0:23:24That would be a problem if she decides to let the flat out
0:23:24 > 0:23:27rather than live here.
0:23:27 > 0:23:30Do you have to keep your sister in check sometimes?
0:23:30 > 0:23:33More than sometimes. We have very clear ideas
0:23:33 > 0:23:35of what kind of things we want in the property.
0:23:35 > 0:23:39She wants to put her own touch on it, but it might be a bit OTT,
0:23:39 > 0:23:42so we're having discussions at the moment
0:23:42 > 0:23:44about whether to put in a pink carpet.
0:23:44 > 0:23:47Come on. Are you thinking about having a pink carpet?
0:23:47 > 0:23:50In my bedroom, because that's just my territory.
0:23:50 > 0:23:53I don't think anyone else should mind. It's my space.
0:23:53 > 0:23:56There's pink and pink. Are we talking PINK?
0:23:56 > 0:23:59- Yeah, pink, like what's on my nails. - Oh, my goodness!
0:23:59 > 0:24:01That nail-varnish colour?
0:24:01 > 0:24:04It's just something I've always wanted, so let's see.
0:24:04 > 0:24:08We're still negotiating, so we might end up with a baby pink or something.
0:24:08 > 0:24:12Well, Mo's got some strong ideas about what she'd like to do here.
0:24:12 > 0:24:14With her budget of £40,000,
0:24:14 > 0:24:17and eight weeks scheduled to do the work,
0:24:17 > 0:24:20she's going to have a lot of fun.
0:24:20 > 0:24:22# Girls just wanna have fun #
0:24:24 > 0:24:28Mo, if I had to ask you, do you think you're going to live in here
0:24:28 > 0:24:31- and make this your perfect home? - Maybe.
0:24:31 > 0:24:33I really love the location, love the space.
0:24:33 > 0:24:37I just, um...not 100 percent sure if I'm going to live in this one.
0:24:37 > 0:24:40What's the difference between this and the other one?
0:24:40 > 0:24:44The other one's on the second floor, and I love this one's garden.
0:24:44 > 0:24:46The one on the second floor has a balcony,
0:24:46 > 0:24:49so I do have some outdoor space,
0:24:49 > 0:24:53and there's a security issue, so I need to work those things out.
0:24:53 > 0:24:56It's going to be really exciting seeing what you do to this flat.
0:24:56 > 0:25:00- Good luck with it. - Thank you.- Thanks a lot.- Cheers, Mo.
0:25:00 > 0:25:03Pink carpets, hot tubs and steam rooms!
0:25:03 > 0:25:07What? Well, good job her brother is there to rein her in.
0:25:07 > 0:25:10Will Mo move in, or will she rent this one out?
0:25:10 > 0:25:12And will her taste be to everybody's?
0:25:12 > 0:25:16You can find out what happens later on in the programme.
0:25:17 > 0:25:21Coming up - in Burnley, there's something amiss upstairs.
0:25:21 > 0:25:24Well, two good-sized bedrooms,
0:25:24 > 0:25:27but not quite enough floorboards.
0:25:27 > 0:25:29Back at this ground-floor flat in London,
0:25:29 > 0:25:33it sounds like Mo has got her own way with the colour scheme!
0:25:33 > 0:25:37We've changed the colour scheme. I've always wanted a pink bedroom.
0:25:39 > 0:25:42But first, there's been a major rethink in Devon.
0:25:42 > 0:25:47What I'd like to be able to do is turn the property upside down.
0:25:55 > 0:25:57In the beautiful village of Lympstone,
0:25:57 > 0:26:00if it were seaside outlooks you were after,
0:26:00 > 0:26:03then, this three-bed cottage that went to auction
0:26:03 > 0:26:07would be hard to beat. It was its position right on the estuary
0:26:07 > 0:26:10that attracted Northamptonshire-based Nick.
0:26:10 > 0:26:13He saw it first and foremost as a holiday cottage
0:26:13 > 0:26:19for him and his family, with a view to turning it into their permanent home in the future.
0:26:19 > 0:26:23He was under no illusion that the location here was the draw,
0:26:23 > 0:26:28because the cottage itself was in need of more than a little attention.
0:26:28 > 0:26:30I've seen a survey since I bought the property,
0:26:30 > 0:26:34and the survey said that there's only one wall that's worth keeping.
0:26:34 > 0:26:38- The rest of them?- The rest should be taken down and rebuilt,
0:26:38 > 0:26:41including the roof, the windows, the plumbing and the electrics.
0:26:41 > 0:26:43- Apart from that, it's perfect. - Yeah.- Right.
0:26:43 > 0:26:47- You've really fallen in love with this place.- Very much so.
0:26:47 > 0:26:51Well, he may have loved it, but because of the state it was in,
0:26:51 > 0:26:55he was also considering redeveloping the site.
0:26:55 > 0:26:57So now, 18 months on, has he transformed it
0:26:57 > 0:27:00into the holiday home he hoped for?
0:27:10 > 0:27:14Well, the exterior's unaltered in structure,
0:27:14 > 0:27:16but it's got a much more cared-for look.
0:27:26 > 0:27:30Whereas inside, the front area's been really spruced up.
0:27:31 > 0:27:35But why is this a refurbishment rather than a redevelopment?
0:27:35 > 0:27:38I really took a sort of three-to-five-year view,
0:27:38 > 0:27:43saying, well, a good paint and carpet and minimal cost,
0:27:43 > 0:27:47then we've got somewhere to live in for two, three, four, five years,
0:27:47 > 0:27:49and then that would be fine.
0:27:49 > 0:27:51Nick wants to spend time on this property,
0:27:51 > 0:27:54and see what its potential shortcomings are
0:27:54 > 0:27:56before committing a lot of money to it.
0:27:56 > 0:27:58So for the time being, there's been a revamp
0:27:58 > 0:28:03of what's already here, starting with a much-improved kitchen.
0:28:08 > 0:28:10Bathroom...
0:28:14 > 0:28:17There's a cosy and welcoming downstairs bedroom,
0:28:17 > 0:28:20and he's really maximised the space for himself, his wife
0:28:20 > 0:28:24and two grown-up children. This is illustrated by what he's done
0:28:24 > 0:28:26with the two bedrooms upstairs.
0:28:26 > 0:28:29OK. In this room... You might remember there were two rooms.
0:28:29 > 0:28:33They were divided by a wardrobe partition thing in the middle,
0:28:33 > 0:28:35and they were just really too small and poky.
0:28:35 > 0:28:39So the easy decision was to remove all the wardrobe
0:28:39 > 0:28:43and make it into the big room that we've got now.
0:28:43 > 0:28:45This sort of area, which was a small bedroom,
0:28:45 > 0:28:49is now used as a dressing room, and then obviously we've got the bed
0:28:49 > 0:28:52over here, so much more space.
0:28:52 > 0:28:56So far Nick reckons he's spent around just £2,000
0:28:56 > 0:29:00turning it into his family's seaside retreat.
0:29:00 > 0:29:02But when he originally bought the cottage,
0:29:02 > 0:29:05he had quite ambitious plans for it. Have those changed?
0:29:05 > 0:29:08Whether we redevelop or not is going to depend on
0:29:08 > 0:29:12how long the roof and the rear wall actually last out for.
0:29:12 > 0:29:15At the moment, from an insulation point of view,
0:29:15 > 0:29:19the property is really bad, and it's got the lowest energy rating
0:29:19 > 0:29:21I've ever seen for a property,
0:29:21 > 0:29:24so I would hope the planners could be persuaded
0:29:24 > 0:29:26it would be better to use modern materials,
0:29:26 > 0:29:29and I would love to be able to create a zero-carbon building,
0:29:29 > 0:29:34but a building that was sustainable, that you didn't have to have heating in at all.
0:29:38 > 0:29:41Due to the current structural state of the cottage,
0:29:41 > 0:29:43Nick's fairly optimistic that eventually
0:29:43 > 0:29:46he'll be able to put up a new build here,
0:29:46 > 0:29:48but because it's a conservation area,
0:29:48 > 0:29:51he may be limited on what he can do with the external appearance
0:29:51 > 0:29:55so it will have less impact on the internal layout.
0:29:56 > 0:29:59In terms of the grand plan, what I'd like to be able to do
0:29:59 > 0:30:02is to probably turn the property upside down,
0:30:02 > 0:30:05and have the bathroom and the bedrooms on the ground floor
0:30:05 > 0:30:08and, to maximise the view, have a big open-plan space
0:30:08 > 0:30:13at first floor, big living-room area, big kitchen area, dining area,
0:30:13 > 0:30:15so that we do get the benefit of the view
0:30:15 > 0:30:19throughout the whole house, not just in the kitchen as it is at the moment.
0:30:19 > 0:30:20# Upside down you're turning me
0:30:20 > 0:30:22# You're giving love instinctively #
0:30:22 > 0:30:27In an ideal world, Nick's upside-down house
0:30:27 > 0:30:31would have lots of glass, allowing views out across the estuary.
0:30:31 > 0:30:33But that's in the future.
0:30:34 > 0:30:37So, how does the cottage stand now,
0:30:37 > 0:30:40after an investment of 170,000 buying it
0:30:40 > 0:30:44plus a spend of around £2,000 on a cosmetic refurbishment,
0:30:44 > 0:30:50making a total outlay of £179,000 including fees and costs?
0:30:50 > 0:30:53Has Nick's heart ruled his head, or was it a good buy?
0:30:53 > 0:30:57What do two local property experts think?
0:30:57 > 0:31:00Obviously the location is everything,
0:31:00 > 0:31:02and the view is absolutely stunning.
0:31:02 > 0:31:07Yes, of course it needs work doing to it, and it's very quirky, but it's charming.
0:31:07 > 0:31:09First impressions are that he's done a straightforward
0:31:09 > 0:31:11but very easy refurbishment project.
0:31:11 > 0:31:15A lick of paint, cosmetic stuff from top to bottom,
0:31:15 > 0:31:17has done a really good job, actually.
0:31:17 > 0:31:19We know it's about location, but in this case,
0:31:19 > 0:31:22does that make it worth more than his total spend
0:31:22 > 0:31:24of around 179,000?
0:31:24 > 0:31:27If the property was to be placed on the market today,
0:31:27 > 0:31:31it would fetch somewhere in the region of £250,000 to £275,000.
0:31:31 > 0:31:33The property as it is at the moment,
0:31:33 > 0:31:37I would recommend marketing in the region of £250,000.
0:31:37 > 0:31:40So, a makeover costing just over £2,000
0:31:40 > 0:31:44and a period of 18 months has seen the value potentially improve
0:31:44 > 0:31:49by between £71,000 and £96,000 before tax and expenses.
0:31:49 > 0:31:52Not bad! And if Nick redevelops the site and does a new build,
0:31:52 > 0:31:54how much could that be worth?
0:31:55 > 0:31:59If the owner decided to put a contemporary-style property here,
0:31:59 > 0:32:02with the views to die for, the sky is the limit.
0:32:02 > 0:32:06Excuse the pun, but you could fetch somewhere in the region of £450,000
0:32:06 > 0:32:07to £500,000.
0:32:07 > 0:32:12I would recommend an asking price of round £400,000.
0:32:13 > 0:32:18Nick reckons a rebuild would cost around £200,000 to £250,000,
0:32:18 > 0:32:22depending on what spec of design he eventually goes for.
0:32:22 > 0:32:26What does he make of the experts' valuations, then?
0:32:26 > 0:32:29It would be nice to be able to feel there might be some profit in there,
0:32:29 > 0:32:32but I can understand those figures, yeah. Yeah.
0:32:32 > 0:32:35But I would say that I'm not selling. HE LAUGHS
0:32:35 > 0:32:39Clearly at this stage it's not really about money for Nick.
0:32:39 > 0:32:42It's a bolthole for him and his family,
0:32:42 > 0:32:44and somewhere he loves to be.
0:32:44 > 0:32:49I suppose by saying I can't imagine any situation
0:32:49 > 0:32:52that would make me want to sell it, then, I guess I must love it.
0:32:55 > 0:32:59Without any shadow of a doubt, this is the best purchase I've made in my life.
0:32:59 > 0:33:03# You're the best thing that ever happened
0:33:04 > 0:33:09# To me or my world #
0:33:09 > 0:33:12The great thing about this cottage is,
0:33:12 > 0:33:16if that new build goes ahead, perhaps the best is yet to come.
0:33:22 > 0:33:25I'm in the former mill town of Burnley.
0:33:25 > 0:33:29It's a post-industrial centre that's seen better days in parts,
0:33:29 > 0:33:32and, like many such places, has struggled to recover
0:33:32 > 0:33:35from the loss of industry. But it's in a good commuter belt
0:33:35 > 0:33:40between Leeds and Manchester, so there's certainly still life left in this town.
0:33:40 > 0:33:43SONG: "I'm Still Standing" by Elton John
0:33:45 > 0:33:49There's no specific sign of regeneration in this part of Burnley,
0:33:49 > 0:33:53but that means if you buy now, it could be a great long-term investment.
0:33:53 > 0:33:55That's especially true when you consider
0:33:55 > 0:33:58that this two-bedroomed mid-terrace house
0:33:58 > 0:34:03went to auction with a guide price between £15,000 and £20,000.
0:34:05 > 0:34:08The great thing about properties at that kind of price level
0:34:08 > 0:34:13is that you expect very little, so one can only be pleasantly surprised.
0:34:13 > 0:34:16Things like, it's got a little porch. I like that!
0:34:16 > 0:34:18Makes your living-room area nice and warm,
0:34:18 > 0:34:21so you haven't got draughts from the road.
0:34:21 > 0:34:24Front living-room area here, solid floors,
0:34:24 > 0:34:27so that's good, as long as there's a reasonable damp course in there.
0:34:27 > 0:34:29Gas fire obviously wants replacing.
0:34:29 > 0:34:32Yes, it is in a right old state.
0:34:32 > 0:34:34Certainly you're going to have to do redecoration.
0:34:34 > 0:34:38What do you expect for your money? One thing you might expect
0:34:38 > 0:34:41is a kitchen. I'm afraid not. Yes, there's a space,
0:34:41 > 0:34:43and it's a big space, so we like that.
0:34:43 > 0:34:46All the units want to be taken out,
0:34:46 > 0:34:49but you'd probably do that anyway. That's not good.
0:34:49 > 0:34:53Hmm. But apart from that, it's a good start. Yes, it is!
0:34:53 > 0:34:57# It's not right but it's OK
0:34:57 > 0:35:00# I'm gonna make it anyway #
0:35:01 > 0:35:05As you can see, this property has been sorely neglected.
0:35:05 > 0:35:08Floorboards have been ripped up and fittings torn out,
0:35:08 > 0:35:10but its structure is sound,
0:35:10 > 0:35:15so any purchaser should be able to look past the mere cosmetics here
0:35:15 > 0:35:16and think of the potential.
0:35:17 > 0:35:21Well, upstairs, two good-size bedrooms,
0:35:21 > 0:35:26but not quite enough floorboards. They have actually been removed,
0:35:26 > 0:35:29and that's because somebody's taken away the pipes.
0:35:29 > 0:35:32Oh, well, you probably would have had to replace them anyway.
0:35:32 > 0:35:35But the good news is that the bathroom and loo,
0:35:35 > 0:35:37which you might have expected to be downstairs,
0:35:37 > 0:35:40as traditional in this kind of house,
0:35:40 > 0:35:43has been moved upstairs. That will save you a fortune.
0:35:43 > 0:35:45So, yes, it looks in a right old state,
0:35:45 > 0:35:47and there will be remedial work up here,
0:35:47 > 0:35:51but in the whole scheme of things, who cares? Just remember that price!
0:35:51 > 0:35:55That £15,000 to £20,000 guide price
0:35:55 > 0:35:58certainly makes up for a lot of the house's ills.
0:35:58 > 0:36:02There's no major structural work to be done here, as far as I can tell,
0:36:02 > 0:36:06but it's always worth getting a full survey done just to be sure.
0:36:07 > 0:36:11Let's say you got this for around that £15,000 to £20,000 price.
0:36:11 > 0:36:14Let's say you paid the top end of that, 20,000 quid.
0:36:14 > 0:36:18Rents in this area, for this kind of house, about £4,000 a year.
0:36:18 > 0:36:20That...
0:36:20 > 0:36:23£20,000 investment, £4,000 back.
0:36:23 > 0:36:2720 percent yield. This place is a money-making machine!
0:36:30 > 0:36:33But don't just take my word for it.
0:36:33 > 0:36:36Let's hear the thoughts of a local property expert.
0:36:41 > 0:36:43Well, it needs new central heating.
0:36:43 > 0:36:46Most of the windows are UPVC framed,
0:36:46 > 0:36:49but some of the glazing units have been broken,
0:36:49 > 0:36:52so they need repairing. Probably needs a new kitchen and bathroom.
0:36:52 > 0:36:55It wants redecorating, some areas of replaster.
0:36:57 > 0:37:01Once the house has been successfully renovated,
0:37:01 > 0:37:03what does he think the return could be
0:37:03 > 0:37:05if the purchaser decides to resell?
0:37:08 > 0:37:09Once the works are done,
0:37:09 > 0:37:13you would expect it to be worth approaching 30,000, probably,
0:37:13 > 0:37:17in the current market conditions. Not much more than that.
0:37:17 > 0:37:20What if the buyer chose to rent it out?
0:37:22 > 0:37:26I would expect it to bring in at least £350,
0:37:26 > 0:37:28possibly £400, per calendar month.
0:37:28 > 0:37:31Well, yes, there's work to be done,
0:37:31 > 0:37:33but I keep coming back to that guide price.
0:37:33 > 0:37:37Just 15,000 to 20,000 quid. You can't go wrong.
0:37:37 > 0:37:40Let's see who agreed with me when it went under the hammer.
0:37:40 > 0:37:43Where shall we begin? Someone give me 5,000 for it?
0:37:43 > 0:37:45Want to give me five? Thought you might.
0:37:45 > 0:37:48Five there. Ten?
0:37:48 > 0:37:51Ten there. Do you want to give me 15, sir?
0:37:51 > 0:37:5215 I've got. 20.
0:37:52 > 0:37:5420?
0:37:54 > 0:37:59No? I've got 15 here. I'll sell it for 15, so it's in the room.
0:37:59 > 0:38:01- Will you take 16 for it? - I will take 16 for it.
0:38:02 > 0:38:04He's given me 17 now, so I'll take 18.
0:38:04 > 0:38:0718 I've got. 19? 20?
0:38:09 > 0:38:12At £19,000 with you, then, sir.
0:38:12 > 0:38:14Can I say 20?
0:38:14 > 0:38:17I've got 19. I'll sell it for 19,000, gentleman on the right,
0:38:17 > 0:38:19on the far wall.
0:38:19 > 0:38:23At 19,000 for the first time. 19,000 for the second time.
0:38:23 > 0:38:26Are we finished? The answer is yes, and it belongs to you, sir,
0:38:26 > 0:38:28paddle number 876.
0:38:28 > 0:38:33Short but sweet, and that final bid of £19,000 came from David.
0:38:34 > 0:38:37David's an entrepreneur who invests in property,
0:38:37 > 0:38:39whilst Alex, who's on the right here,
0:38:39 > 0:38:44is his business associate, who helps manage his investments.
0:38:46 > 0:38:48I caught up with them back at the house
0:38:48 > 0:38:51to find out if their business sense is as sharp as their suits.
0:38:51 > 0:38:54# Lookin' back on the track
0:38:54 > 0:38:56# For a little green bag
0:38:56 > 0:38:58# Got to find just the kind
0:38:58 > 0:39:01# Or I'm losin' my mind #
0:39:01 > 0:39:04- Alex, Dave, good to see you both. - Good to see you.
0:39:04 > 0:39:07Congratulations. Tell me why you wanted to buy this place.
0:39:07 > 0:39:11We're looking at a type of property which we could renovate,
0:39:11 > 0:39:14rent out at a reasonable rate of return.
0:39:14 > 0:39:16There's a business model behind all of this
0:39:16 > 0:39:21which says if we can get something in the region of ten percent, we're happy with it.
0:39:21 > 0:39:23We looked in this area and thought, for the cost
0:39:23 > 0:39:26and renovation, we could achieve a rent at that level.
0:39:26 > 0:39:28It sounds a bit like you know what you're doing.
0:39:28 > 0:39:31There's a method in the madness lurking behind it all.
0:39:31 > 0:39:35A lot of forethought goes into it. We've taken a look at the area,
0:39:35 > 0:39:38- and thought, that fits the business model, happy with it.- Right.
0:39:38 > 0:39:42This house cost £19,000. How can you go wrong at that price?
0:39:42 > 0:39:47It is perfectly structurally stable. Refurbishments are cosmetic,
0:39:47 > 0:39:50but that'll come in comfortably inside £10,000
0:39:50 > 0:39:52because it's so small.
0:39:52 > 0:39:56- Tell me about you two, then.- We work together. I'm the entrepreneur,
0:39:56 > 0:39:58- and Alex is the accountant. - So that works well.
0:39:58 > 0:40:02So I'm full of enthusiasm for the ideas, and Alex costs them out.
0:40:03 > 0:40:07David felt his money was better invested in property than banks,
0:40:07 > 0:40:09especially in the current economic climate.
0:40:09 > 0:40:13But he only opened the books on his property portfolio
0:40:13 > 0:40:15less than a year ago.
0:40:17 > 0:40:20So, ten months on, how many properties have you got?
0:40:20 > 0:40:22- Nearly 50.- 50?!
0:40:22 > 0:40:25- Yeah.- What, in ten months?- Yeah!
0:40:25 > 0:40:30So far, David's spent about £2.5 million on his portfolio.
0:40:30 > 0:40:33The current climate doesn't really bother him.
0:40:33 > 0:40:36It's all about the rental return.
0:40:36 > 0:40:38I'm not planning for capital appreciation,
0:40:38 > 0:40:41and that's the difference. A lot of people are saying,
0:40:41 > 0:40:45"I'll buy this, I'll do it up. Maybe I'll rent it,
0:40:45 > 0:40:48but in the end, there's going to be some capital appreciation."
0:40:48 > 0:40:51I'm working on the basis that there might be some in ten years' time,
0:40:51 > 0:40:55but in the next two to three years, prices will stay the same.
0:40:55 > 0:40:58# You've got the right idea
0:40:58 > 0:41:00# You got the right idea #
0:41:04 > 0:41:07By the sound of it, these guys have really got it sussed.
0:41:07 > 0:41:10But with 50 properties in their portfolio,
0:41:10 > 0:41:15for Alex to manage the renovations, he must need an army of builders.
0:41:17 > 0:41:20We have a team that we're very confident in,
0:41:20 > 0:41:23who can go in and assess the problem straight away,
0:41:23 > 0:41:26give us a rough idea of costings, timescale for completion,
0:41:26 > 0:41:28so for this house, three to four weeks
0:41:28 > 0:41:31to do all the work required, no longer than that.
0:41:31 > 0:41:33- And a budget of around 10,000? - Thereabouts.
0:41:33 > 0:41:36- Yeah, thereabouts. - It's great. Congratulations,
0:41:36 > 0:41:39- and good luck with it all. - Thank you very much.
0:41:39 > 0:41:41We look forward to seeing how you get on.
0:41:42 > 0:41:47Well, I have to say that 50 properties in ten months
0:41:47 > 0:41:49is a fantastic achievement in anybody's books,
0:41:49 > 0:41:52and David certainly seems to have got the right idea
0:41:52 > 0:41:55of what's happening in the property market.
0:41:55 > 0:41:57He realises you can't go wrong with this.
0:41:57 > 0:42:01Still, lots of work to be done. How are they going to get on?
0:42:01 > 0:42:03Find out later in the show.
0:42:06 > 0:42:09Well, the seasons have changed, but have the properties?
0:42:09 > 0:42:14Have they remained exactly the same? Now is the moment of truth.
0:42:19 > 0:42:22Now back to London, where this three-bedroom ground-floor flat
0:42:22 > 0:42:26in Islington sold at auction for 366,000.
0:42:26 > 0:42:30It was bought by Mo, who runs a property-developing business
0:42:30 > 0:42:32with her brother Sharwan.
0:42:32 > 0:42:36It sounded as though the renovation here was really going to come down
0:42:36 > 0:42:39to a question of individual taste.
0:42:39 > 0:42:43She wants to put her own touch on it, but it might be a bit OTT,
0:42:43 > 0:42:46so we're having discussions at the moment
0:42:46 > 0:42:48about whether to put in a pink carpet.
0:42:48 > 0:42:51Are you thinking about having a pink carpet in this flat?
0:42:51 > 0:42:54In my bedroom, because that's just my territory,
0:42:54 > 0:42:57so I don't think anyone else should mind. It's my space.
0:42:57 > 0:43:01# I need the personal touch...
0:43:03 > 0:43:06Five months later, we caught up with Mo and Sharwan
0:43:06 > 0:43:09to find out what compromises they had to make.
0:43:10 > 0:43:13Although there are no pink carpets,
0:43:13 > 0:43:16Mo has definitely put her own stamp on the place.
0:43:16 > 0:43:17# I need
0:43:17 > 0:43:20# I need the personal touch
0:43:24 > 0:43:26# I need
0:43:26 > 0:43:29# I need the personal touch
0:43:30 > 0:43:34# One day away from you too long is too much
0:43:36 > 0:43:39# I need the personal touch #
0:43:40 > 0:43:43We changed absolutely everything - rewired,
0:43:43 > 0:43:47we've created an extra bathroom, we've refurbed the kitchen
0:43:47 > 0:43:50and the hallway.
0:43:53 > 0:43:57We have taken out the old boiler and we've changed the plumbing.
0:43:57 > 0:44:00We've also done all the colour schemes.
0:44:00 > 0:44:04We've redecorated throughout, and we've created a garden as well,
0:44:04 > 0:44:06and made that a lot more spacious.
0:44:06 > 0:44:10That area at the back is much more appealing now,
0:44:10 > 0:44:12not to mention private.
0:44:12 > 0:44:15They've also been clever with the space inside.
0:44:15 > 0:44:18They stole a bit of the kitchen and moved some of the walls
0:44:18 > 0:44:20to make that new second bathroom,
0:44:20 > 0:44:23which, handily, is right next to the other one.
0:44:23 > 0:44:27Both are now fitted with state-of-the-art fittings
0:44:27 > 0:44:31and shower units appealing to both tenants and would-be spacemen!
0:44:31 > 0:44:34SONG: "Rocket Man" by Elton John
0:44:34 > 0:44:37# I'm a rocket man
0:44:39 > 0:44:40# Rocket man
0:44:40 > 0:44:43# Burning out his fuse out here alone #
0:44:43 > 0:44:46But the extravagant touches don't stop there.
0:44:46 > 0:44:50There's the newly decorated and very pink master bedroom.
0:44:52 > 0:44:55We haven't actually changed the size of the bedroom.
0:44:55 > 0:44:58We simply moved the doorway. As you can see, we've changed the colours.
0:44:58 > 0:45:01I've always wanted a pink bedroom. You may remember,
0:45:01 > 0:45:04my brother said not to have a pink carpet,
0:45:04 > 0:45:06so I decided to have wallpaper instead.
0:45:06 > 0:45:09This is flock velvet wallpaper, very difficult to get hold of,
0:45:09 > 0:45:14and at £100 a roll, it wasn't the cheapest thing I bought for the flat.
0:45:15 > 0:45:18Mo has been really passionate about the decor in the flat.
0:45:18 > 0:45:22My only concern is that if they decide to rent it out
0:45:22 > 0:45:26or sell it on, it's usually a safer bet to keep to neutral colours throughout.
0:45:28 > 0:45:31But if Mo does opt to keep this and move in herself,
0:45:31 > 0:45:36I'm sure she'll love walking up and down that new marble corridor.
0:45:36 > 0:45:38# Blue light
0:45:39 > 0:45:41# Can you turn on a blue light?
0:45:41 > 0:45:45# Then everything will be all right
0:45:45 > 0:45:48# Whoa, oh, oh, blue light #
0:45:48 > 0:45:52Well, the hallway, the builders knocked out a couple of recesses
0:45:52 > 0:45:56into the wall, which we wanted to put as a feature in there,
0:45:56 > 0:46:00and we put a lot of marble in the hallway, again as a nice feature,
0:46:00 > 0:46:04and Mo and I came up with the design for the floor, so...
0:46:04 > 0:46:07I had this vision of having lights all along the hallway,
0:46:07 > 0:46:10so we came up with this design of the lights,
0:46:10 > 0:46:14and Shar said, "Why don't you create a pattern, have crazy paving?"
0:46:14 > 0:46:17And we started sketching, and we came up with this,
0:46:17 > 0:46:20and sourced the marble. Shar found some good suppliers in London,
0:46:20 > 0:46:24so we went ahead, and our builders were very accommodating.
0:46:27 > 0:46:30There's even more dazzling decor in the kitchen,
0:46:30 > 0:46:33with floor lighting, stylish new units
0:46:33 > 0:46:37and a coloured-glass worktop. There are brand-new appliances in here
0:46:37 > 0:46:40as well, and even a TV to keep you entertained
0:46:40 > 0:46:42while you do the dishes.
0:46:42 > 0:46:44In each of the rooms we've put TV points,
0:46:44 > 0:46:47but also TVs in all of the rooms.
0:46:47 > 0:46:50We've put a lot of low-voltage lights in all of the rooms,
0:46:50 > 0:46:52so it's a lot more eco-friendly.
0:46:52 > 0:46:55Shar's been amazing at sourcing the best deals,
0:46:55 > 0:46:58and you'll see all of this throughout the flat.
0:46:58 > 0:47:00From the marble shelves in the hallway
0:47:00 > 0:47:02to the appliances in the kitchen,
0:47:02 > 0:47:05everything has been given an awful lot of thought,
0:47:05 > 0:47:06and that's thanks to Shar, really.
0:47:06 > 0:47:10Sharwan has done a fantastic job of getting high-end fixtures
0:47:10 > 0:47:12at a low-end price, but has that been enough
0:47:12 > 0:47:17to keep them within their original budget of £40,000.
0:47:17 > 0:47:21We spent probably about ten percent of the purchase price
0:47:21 > 0:47:24in terms of doing the actual building works,
0:47:24 > 0:47:28and then another £4,000, £5,000 on furniture as well,
0:47:28 > 0:47:31so the budget has come in completely as expected,
0:47:31 > 0:47:33but we've got a lot more for our money.
0:47:33 > 0:47:37The only thing that is outstanding, we're thinking about doing the windows,
0:47:37 > 0:47:39which will be a significant cost on top,
0:47:39 > 0:47:41but we think it's worth doing now.
0:47:41 > 0:47:43From everything I've seen,
0:47:43 > 0:47:48it looks as though Mo has well and truly made up her mind to live here.
0:47:48 > 0:47:51# Wherever I lay my hat
0:47:52 > 0:47:55# That's my home #
0:47:56 > 0:47:58The update on whether I'm going to live here or not -
0:47:58 > 0:48:02it looks like I should, doesn't it? But we've had some amazing offers
0:48:02 > 0:48:06on rental, by accident, really. We've been showing people this flat
0:48:06 > 0:48:08whilst the other one is being finished,
0:48:08 > 0:48:11and everyone has fallen in love with this flat.
0:48:11 > 0:48:13So I've had some offers above the market value.
0:48:13 > 0:48:16I have got a couple of other houses to live in,
0:48:16 > 0:48:19so I could live there, but my jury's still out.
0:48:20 > 0:48:23So, she's undecided for now.
0:48:23 > 0:48:26Maybe some valuations will help sway her decision.
0:48:26 > 0:48:29We asked two local property experts for their thoughts.
0:48:35 > 0:48:37Flat's been renovated to a very high standard.
0:48:37 > 0:48:41The changes that have been made have certainly benefited the flat,
0:48:41 > 0:48:43especially in the rental market.
0:48:43 > 0:48:46I think it's quite nice, a little bit quirky,
0:48:46 > 0:48:48a little bit individual.
0:48:48 > 0:48:50Might have gone with more neutral colours,
0:48:50 > 0:48:53but it's done nicely.
0:48:53 > 0:48:56The second bathroom works very well in the flat,
0:48:56 > 0:48:58as does the addition of a third double bedroom.
0:48:58 > 0:49:01The size makes a big difference. Great for rentals,
0:49:01 > 0:49:05great quality finish. I think it'll rent very well.
0:49:06 > 0:49:08So what do they think it could rent for
0:49:08 > 0:49:10if Mo decides to let it out?
0:49:12 > 0:49:17I believe this property, in the current climate, would rent for £2,250 per calendar month.
0:49:17 > 0:49:22This property could rent for £2,400 per calendar month.
0:49:22 > 0:49:26Oh, that's kind of what we expected. We've had a couple of offers
0:49:26 > 0:49:31higher than that, so that's quite good, those values!
0:49:32 > 0:49:36Mo and Sharwan paid 366,000 for the property at auction,
0:49:36 > 0:49:39and have spent £40,000 on the work,
0:49:39 > 0:49:43making their total outlay approximately £406,000.
0:49:43 > 0:49:46What sort of value have they added?
0:49:48 > 0:49:52You would put this property on the current market at £450,000
0:49:52 > 0:49:54and hope to achieve close to that.
0:49:54 > 0:49:58I'd be quite happy marketing this property today at about £450,000.
0:49:58 > 0:50:01- Wow!- OK.- That's very good.
0:50:01 > 0:50:04That breaks the ceiling in this development,
0:50:04 > 0:50:08- so that's really good news.- We were expecting slightly less than that,
0:50:08 > 0:50:11so that's really pleasing, yeah. That's well worth it.
0:50:11 > 0:50:15So, all their hard work could potentially earn them
0:50:15 > 0:50:17£44,000 pre-tax profit,
0:50:17 > 0:50:20minus the usual fees and expenses, of course.
0:50:20 > 0:50:24So, have any of those valuations helped make up Mo's mind?
0:50:25 > 0:50:28# But soon you will find that there comes a time
0:50:28 > 0:50:30# For making your mind up #
0:50:31 > 0:50:34I don't know, because I've seen something else I really like,
0:50:34 > 0:50:39and it's just one of those things that... I could move in
0:50:39 > 0:50:42if I wanted to, but I think I'm quite tempted
0:50:42 > 0:50:45by some of the offers I've had on the rental side.
0:50:45 > 0:50:48No matter what she does decide to do in the end,
0:50:48 > 0:50:52both Mo and Sharwan can rest assured that they have a dazzling future
0:50:52 > 0:50:54with their eye-catching property.
0:51:00 > 0:51:04Now it's back to Burnley, where this mid-terrace property
0:51:04 > 0:51:08sold at auction for just £19,000.
0:51:08 > 0:51:11It was in a terrible state,
0:51:11 > 0:51:14and in desperate need of major renovation,
0:51:14 > 0:51:17but property developer David and his business partner Alex
0:51:17 > 0:51:19weren't put off.
0:51:19 > 0:51:21There's a business model behind all this
0:51:21 > 0:51:25which says if we can get something in the region of ten percent, we're happy,
0:51:25 > 0:51:28and we looked at this area and thought, yeah, for the cost,
0:51:28 > 0:51:30we could achieve a rent at that level.
0:51:30 > 0:51:32It sounds a bit like you know what you're doing.
0:51:32 > 0:51:35There's a method in the madness, lurking behind it all.
0:51:35 > 0:51:39A lot of forethought goes into it. We've taken a look at the area
0:51:39 > 0:51:42and thought, "That fits the business model. Happy with it."
0:51:42 > 0:51:46SONG: "Bright Idea" by Orson
0:51:48 > 0:51:50Just six weeks on, we've caught up with them
0:51:50 > 0:51:54to find out if they've turned this house into a profit generator.
0:51:57 > 0:52:00The property was in a poor state of repair,
0:52:00 > 0:52:03so we've had a brand-new kitchen put in,
0:52:03 > 0:52:05brand-new bathroom put in...
0:52:07 > 0:52:09..carpeted throughout,
0:52:09 > 0:52:12and it's amazing what woodchip and magnolia does to a property.
0:52:12 > 0:52:15It's a fairly bland colour scheme we've got going
0:52:15 > 0:52:20that allows people moving in to bring their own character to the property,
0:52:20 > 0:52:23so we're pleased with the outcome. I'm sure the tenants moving in,
0:52:23 > 0:52:28when they look at it, will find it an attractive spot to move to.
0:52:28 > 0:52:31It's been a fairly straightforward renovation.
0:52:31 > 0:52:34There have been no nasty surprises or problems,
0:52:34 > 0:52:38so here's hoping that they've kept to their original timescale.
0:52:39 > 0:52:42We said we would try and do the work within three to four,
0:52:42 > 0:52:45and broadly we've fitted in within that.
0:52:45 > 0:52:48As you can see, the property's completely renovated and ready.
0:52:57 > 0:53:01So, they came in on time, but have they come in on budget?
0:53:01 > 0:53:05Remember, they planned to spend £10,000 on the work.
0:53:05 > 0:53:08'Well, we were very marginally over.'
0:53:08 > 0:53:12If we're being pernickety on the figures, it came in at £10,229,
0:53:12 > 0:53:16so we're a couple of percentage points over budget,
0:53:16 > 0:53:20but that really is a good result by anybody's terms.
0:53:20 > 0:53:22With the renovation now complete,
0:53:22 > 0:53:26what are David and Alex's plans for this house?
0:53:27 > 0:53:29The plan for this property is to rent it.
0:53:29 > 0:53:33It's in an area where most of the houses are rented.
0:53:33 > 0:53:36It's unlikely that we'd actually sell it.
0:53:36 > 0:53:39I expect to be able to put a tenant in very soon.
0:53:39 > 0:53:43David and Alex have a portfolio of around 50 properties
0:53:43 > 0:53:46and often rent them out to local councils,
0:53:46 > 0:53:49maximising the chances of a profitable income.
0:53:51 > 0:53:54We will approach the Bolton Housing Association.
0:53:54 > 0:53:57They usually have a list of tenants
0:53:57 > 0:53:59looking for properties of this nature,
0:53:59 > 0:54:03and there's a fixed rent that goes with a two-bed terrace property,
0:54:03 > 0:54:08so we would expect to be able to offer the house to a tenant
0:54:08 > 0:54:10within the very near future.
0:54:10 > 0:54:13Getting a fixed rent from the council sounds like a good idea
0:54:13 > 0:54:17for this developing duo, but is it better than renting it privately?
0:54:17 > 0:54:20We asked two local property experts to give us their opinions
0:54:20 > 0:54:23on the work, and their valuations.
0:54:25 > 0:54:27First impressions are good. He's done a good job
0:54:27 > 0:54:30since we were last here, done what I expected him to do.
0:54:30 > 0:54:32Yes, it's good.
0:54:32 > 0:54:35Seems to have been refurbished to a reasonable standard,
0:54:35 > 0:54:38taking into account the type of property and its location.
0:54:38 > 0:54:39It's a good job.
0:54:39 > 0:54:42I think the kitchen is just about right.
0:54:42 > 0:54:45It'd modern, serviceable. He's not gone over the top.
0:54:45 > 0:54:47Perfect for the rental market.
0:54:47 > 0:54:49The standard of workmanship's good for the market
0:54:49 > 0:54:52they're looking to attract, which is the rental market.
0:54:52 > 0:54:55So, with a purchase price of 19,000,
0:54:55 > 0:54:58and the renovation costing just over 10,000,
0:54:58 > 0:55:02the total outlay here is around £30,000.
0:55:03 > 0:55:06Do the experts think there could be a good return on rental?
0:55:07 > 0:55:12I think the rental value of this property is £350 to £400 per calendar month.
0:55:12 > 0:55:14If I were to put the property up for rent,
0:55:14 > 0:55:17I would expect to achieve £300 per calendar month.
0:55:17 > 0:55:20Those figures would give the developing duo
0:55:20 > 0:55:24an amazing yield of between 12 and 16 percent.
0:55:24 > 0:55:26What do David and Alex make of that?
0:55:28 > 0:55:33Well, the price we would've expected would be around £85 a week,
0:55:33 > 0:55:37so, doing the maths, about 340 for that,
0:55:37 > 0:55:40so it's in the area, in the region. Comfortable with that.
0:55:40 > 0:55:45David and Alex's business model is based on renting out high-yield properties,
0:55:45 > 0:55:48but should they ever decide to sell this one off,
0:55:48 > 0:55:52what could they achieve, bearing in mind the total investment here
0:55:52 > 0:55:56of just under £30,000 plus the usual fees and expenses?
0:56:00 > 0:56:03I'd expect the property to achieve for sale probably no more than 30,000.
0:56:03 > 0:56:09The prices will be held back because of the immediate location, but £30,000.
0:56:09 > 0:56:13In terms of resale, that's more difficult to ascertain.
0:56:13 > 0:56:17If I was to put a figure on it, I would say a maximum of £40,000,
0:56:17 > 0:56:21as it is only likely to appeal to the rental market
0:56:21 > 0:56:23and not to owner-occupiers.
0:56:23 > 0:56:28Well, we thought 35 to 38, so again, it's in the right area.
0:56:29 > 0:56:33For the time being, David's going to follow his successful business plan
0:56:33 > 0:56:35and will rent it out.
0:56:35 > 0:56:38With his empire starting less than a year ago,
0:56:38 > 0:56:42and growing at a rapid pace, is he enjoying his new career
0:56:42 > 0:56:44as a property magnate?
0:56:44 > 0:56:46It's great fun doing this.
0:56:46 > 0:56:49Doing homes is something that's innate to us all.
0:56:49 > 0:56:52To do it for a living is really quite enjoyable.
0:56:55 > 0:56:58We'll have more news from around the auction room next time.
0:56:58 > 0:57:00Join us for more Homes Under The Hammer.
0:57:00 > 0:57:02- See you then.- Goodbye.
0:57:02 > 0:57:06Subtitles by Red Bee Media Ltd
0:57:06 > 0:57:10E-mail subtitling@bbc.co.uk