0:00:02 > 0:00:04Hello and welcome to the programme.
0:00:04 > 0:00:07For many, buying a house and doing it up is just a dream
0:00:07 > 0:00:08but others make it a reality.
0:00:08 > 0:00:10So are you a doer, or a dreamer
0:00:10 > 0:00:13when it comes to buying your home under the hammer?
0:00:38 > 0:00:42Well, some people find buying at auction a little bit stressful.
0:00:42 > 0:00:43It all happens so quick -
0:00:43 > 0:00:46in a split second a property could be yours.
0:00:46 > 0:00:50So make sure when you are buying at auction, you're prepared.
0:00:50 > 0:00:52So what inspired the buyers on today's show?
0:00:53 > 0:00:57In this Derby mid-terrace, the bathroom floor is rather wonky.
0:00:57 > 0:01:00As you come towards this corner of the room,
0:01:00 > 0:01:02it actually drops quite significantly.
0:01:03 > 0:01:08This flat in Surrey has all mod cons, if you are from another era.
0:01:08 > 0:01:12You can still see the old-fashioned ironing board!
0:01:13 > 0:01:18And there is virtually nothing to do to this swanky pad in Burnley, Lancashire.
0:01:18 > 0:01:22Well, there you go, you want a property that is already sorted out?
0:01:22 > 0:01:23This is your baby.
0:01:24 > 0:01:26All of these properties have been sold at auction.
0:01:26 > 0:01:29We'll find out who bought them and what they paid for them
0:01:29 > 0:01:31when they went under the hammer.
0:01:31 > 0:01:32Sold, 244. Well done, sir.
0:01:36 > 0:01:39Well, today I am in Alveston,
0:01:39 > 0:01:42a suburb of Derby in the great county of Derbyshire.
0:01:42 > 0:01:44And a very nice spot it is too.
0:01:44 > 0:01:47But great news if you're looking to invest in this area
0:01:47 > 0:01:51because it's had a shed load of investment in recent times.
0:01:51 > 0:01:53This is Alveston Park, and as you can see,
0:01:53 > 0:01:57not only is it pretty with the lake, you have got all this new children's play equipment,
0:01:57 > 0:02:01you've got sports facilities, there is a housing estate over there and a new school.
0:02:01 > 0:02:03It bodes very well.
0:02:08 > 0:02:12And it doesn't stop there because as well as the school
0:02:12 > 0:02:15and new houses, this park is also home to playing fields
0:02:15 > 0:02:17and a national standard BMX track.
0:02:18 > 0:02:22For the new owner of the property I'm here to view, this is all right on the doorstep
0:02:22 > 0:02:26as we are heading about 10 minutes around the corner.
0:02:26 > 0:02:29It's a popular residential here with mainly
0:02:29 > 0:02:31turn-of-the-century terraced houses.
0:02:33 > 0:02:36Well, like many areas in the UK,
0:02:36 > 0:02:40this is part of Derby is seeing a shift from predominantly
0:02:40 > 0:02:43owner-occupiers to largely rental properties.
0:02:43 > 0:02:46And the property I'm here to see could fit in really well.
0:02:46 > 0:02:49It's a two-bed mid-terrace,
0:02:49 > 0:02:52had a guide price of £48,000 and it's here.
0:02:52 > 0:02:55It doesn't appear too bad on the outside
0:02:55 > 0:02:58although I think a few windows may need to be replaced.
0:02:58 > 0:03:00But the great news is that this house has recently
0:03:00 > 0:03:02had its roof done.
0:03:02 > 0:03:05That will save you a hefty bill and means one less major job to think about.
0:03:06 > 0:03:09Let's hope inside is just as promising.
0:03:10 > 0:03:13So, what have we got? Well, a fairly standard layout.
0:03:13 > 0:03:17Straight off the pavement into the living room.
0:03:17 > 0:03:19Pleasantly surprised it's in reasonable condition.
0:03:19 > 0:03:21Through here - cellar downstairs there -
0:03:21 > 0:03:23and through into the rear sitting-room.
0:03:23 > 0:03:27It certainly has a sort of feeling of being a little bit more
0:03:27 > 0:03:30tired and dated in here.
0:03:30 > 0:03:34But again, a good sized space and structurally I can't see anything too untoward at the moment.
0:03:34 > 0:03:37A small door through to the kitchen and onwards and upwards.
0:03:42 > 0:03:44Upstairs and the vintage decor continues.
0:03:44 > 0:03:47At the front of the house there is a good-sized bedroom
0:03:47 > 0:03:49and another towards the back.
0:03:49 > 0:03:53In here, you can see evidence of damp but I'd guess that this
0:03:53 > 0:03:57was all the result of a leaky roof which is now completely fixed.
0:03:57 > 0:04:00So it appears to be just cosmetic work that's needed throughout.
0:04:00 > 0:04:05Well, apart from the two bedrooms up here, a really good-sized bathroom.
0:04:05 > 0:04:08Quite a surprise. You might have expected to find this downstairs.
0:04:08 > 0:04:10You might want to consider converting this
0:04:10 > 0:04:14back into a bedroom, although I think the positives of having it here are,
0:04:14 > 0:04:17well to my mind, are worthy of keeping it.
0:04:17 > 0:04:18There is one small problem.
0:04:18 > 0:04:19You probably can't see this,
0:04:19 > 0:04:22but as you come towards this corner of the room,
0:04:22 > 0:04:25it actually drops quite significantly.
0:04:25 > 0:04:27Now that immediately would say to me serious structural issues.
0:04:27 > 0:04:30However, I've done a bit of digging around
0:04:30 > 0:04:33and during the war, there was a Rolls-Royce factory very close by.
0:04:33 > 0:04:34That was heavily bombed
0:04:34 > 0:04:38and a lot of the properties around here were either directly damaged
0:04:38 > 0:04:42by the bombs, or were shaken so much that things like this happened,
0:04:42 > 0:04:45so my guess is that this is largely historic.
0:04:45 > 0:04:48But before I did anything, I'd want to have it checked out.
0:04:48 > 0:04:50# I'm all shook up! #
0:04:52 > 0:04:56Getting in an expert will set your mind at rest and ensure you're not ignoring
0:04:56 > 0:04:58what could potentially be a serious problem.
0:04:58 > 0:05:02Back downstairs, there's an issue I think should be looked into straightaway.
0:05:02 > 0:05:06There are two living rooms in this house which gives a great feeling of space
0:05:06 > 0:05:10but that disappears when you step into the kitchen.
0:05:10 > 0:05:15It is a very small room and does not evoke images of modern living.
0:05:15 > 0:05:18But there is a way round the issue.
0:05:20 > 0:05:23The answer might be here at the rear of the property
0:05:23 > 0:05:27where on from the kitchen there is this outdoor loo.
0:05:27 > 0:05:32Now it is not going to be a huge job to take out that wall, to extend the kitchen into there
0:05:32 > 0:05:36and maybe put a window in the end, or even French doors out onto the garden
0:05:36 > 0:05:39and you've suddenly turned what was that pokey little space
0:05:39 > 0:05:42into a really nice sized kitchen with access to the garden.
0:05:42 > 0:05:46# Honey, I-I-I want to make it better... #
0:05:46 > 0:05:49That would be a straightforward way of solving a problem
0:05:49 > 0:05:53and potentially adding a bit of value to the property.
0:05:53 > 0:05:56I think this house has a lot going for it.
0:05:56 > 0:06:02It desperately needs a helping hand into the 21st century, but has great potential.
0:06:02 > 0:06:04I asked the auctioneer who sold it
0:06:04 > 0:06:08for his thoughts on this place that had a guide price of 48,000.
0:06:08 > 0:06:10This is a standard terraced house.
0:06:10 > 0:06:15It has one or two bonuses as we see it now. One is that
0:06:15 > 0:06:17all the first-floor goes over the entryway beneath,
0:06:17 > 0:06:21so you get an extra metre of width upstairs which is quite useful to have.
0:06:21 > 0:06:24Another is that it has already been re-roofed
0:06:24 > 0:06:28which is quite a significant cost item if it has to be done.
0:06:28 > 0:06:32So although we have got damp stains on ceilings and things, that's history.
0:06:32 > 0:06:35It has been re-roofed and it's watertight.
0:06:35 > 0:06:39So no work on the roof and no need to worry about those signs of damp.
0:06:39 > 0:06:40But what DOES need attention?
0:06:40 > 0:06:43The house has been in elderly occupation
0:06:43 > 0:06:46so not a lot has been done probably for 30 or 40 years.
0:06:46 > 0:06:50In essence it needs a total schedule of renovation and modernisation.
0:06:50 > 0:06:55What could a property in this area achieve on the rental market?
0:06:55 > 0:06:59There is quite a demand for these sort of properties, they're affordable,
0:06:59 > 0:07:01and I would say it would have a rental value of between £450
0:07:01 > 0:07:04and £475 per calendar month.
0:07:04 > 0:07:08Once renovated, what could this place hope to sell on for?
0:07:09 > 0:07:13It probably will be more than about 75,000
0:07:13 > 0:07:16because there is a ceiling value on properties in this location.
0:07:16 > 0:07:21Well, obviously work required to bring this one up to modern standards, but nothing too daunting.
0:07:21 > 0:07:25The only thing I would get checked out is that slope in the bathroom.
0:07:25 > 0:07:28Do that, and you've got yourself a nice little rental property,
0:07:28 > 0:07:29or a good house to live in.
0:07:29 > 0:07:31Let's see who bought it when it went under the hammer.
0:07:35 > 0:07:36Lot number four.
0:07:36 > 0:07:41Another traditional, older type two-bedroom terraced house.
0:07:41 > 0:07:44Needs some upgrading and improvement. 45 to start me.
0:07:44 > 0:07:4545. Thank you.
0:07:45 > 0:07:48At 45,000. 46 seated at the back.
0:07:48 > 0:07:5047 standing by the pillar.
0:07:50 > 0:07:5248 is bid. 49.
0:07:52 > 0:07:5549, 50. At 50,000.
0:07:55 > 0:07:5851. 51, 52. 52,000.
0:07:58 > 0:08:0053? 53.
0:08:00 > 0:08:0554,000? 55. 56.
0:08:05 > 0:08:07And a half? No.
0:08:07 > 0:08:1156 at the back. 500 somewhere else?
0:08:11 > 0:08:1256.5.
0:08:12 > 0:08:1557,000. 57.5.
0:08:15 > 0:08:1958. 58,500.
0:08:19 > 0:08:2159? Can't persuade you?
0:08:21 > 0:08:2358.5. We're selling.
0:08:23 > 0:08:26For the first time. Second time.
0:08:26 > 0:08:28Third and last opportunity.
0:08:28 > 0:08:29Sold at 58,000. Thank you.
0:08:33 > 0:08:36That successful bid of 58,500 came from Nigel,
0:08:36 > 0:08:39who along with his brother-in-law Andy,
0:08:39 > 0:08:42hopes to make property developing his new career.
0:08:42 > 0:08:46I met them back at the house to hear how they plan to do this.
0:08:46 > 0:08:48- Andy, Nigel, lovely to meet you both.- And you, Martin.
0:08:48 > 0:08:50- Congratulations. - Thank you very much.
0:08:50 > 0:08:54- Tell me why you wanted to buy this place?- Well, it was more down to Nigel, really.
0:08:54 > 0:08:57A bit of a fan of the show, and it set his ideas rolling.
0:08:57 > 0:09:00- Oh, really? Because of Homes Under The Hammer?- I've watched,
0:09:00 > 0:09:03- I'd say pretty much every episode that there's ever been. - Oh, fantastic!
0:09:03 > 0:09:05Wow, that's a lot of episodes!
0:09:05 > 0:09:07I've always been interested in property.
0:09:07 > 0:09:10I worked in banking for many, many years, seen a lot of customers that I've dealt with
0:09:10 > 0:09:14go into property developing and I am thinking to myself, "Why haven't I done it?"
0:09:14 > 0:09:17The opportunity has arisen and I thought, yeah, time for a new career.
0:09:17 > 0:09:20And that's hence why we have bought this property.
0:09:20 > 0:09:23So who broached the subject, the possibility? Was it you?
0:09:23 > 0:09:24Yeah, it was myself.
0:09:24 > 0:09:26We were at a sort of our crossroads of careers
0:09:26 > 0:09:29I would suggest with a lot of family issues we've had.
0:09:29 > 0:09:34We need to spend more time at home. We're both doing 70/80 hours a week, which was ridiculous.
0:09:34 > 0:09:39It was all work, work, work. And we just thought with this we can fit the work around the family
0:09:39 > 0:09:42rather than trying to fit the family around the work.
0:09:42 > 0:09:47# You're my number one priority... #
0:09:47 > 0:09:52So, making family their priority, the guys have left careers in finance and sales behind
0:09:52 > 0:09:55and taken the plunge into property developing.
0:09:55 > 0:09:58It will be both Andy and Nigel's full-time job
0:09:58 > 0:10:04and they're hoping this purchase will be the first of many.
0:10:04 > 0:10:05And what's the idea for it?
0:10:05 > 0:10:08To do it up and then sell it on or to rent it out?
0:10:08 > 0:10:11Ideally what we would like to do is build up a bigger pot
0:10:11 > 0:10:14so that we can actually purchase two the next time we go to auction.
0:10:14 > 0:10:17Keep one then for renting and do up the other one and sell it
0:10:17 > 0:10:21and then try and build the pot, till eventually we can build a portfolio,
0:10:21 > 0:10:24so we've got a constant stable income, provide pensions...
0:10:24 > 0:10:28- Yeah.- ..For the whole family then, keep the kids, etc involved as well.
0:10:28 > 0:10:32So tell me exactly what you're going to do with the place to sort it out.
0:10:32 > 0:10:37There's double glazing that needs replacing, well, needs putting in upstairs. Four windows.
0:10:37 > 0:10:40The kitchen will need extending and replacing.
0:10:40 > 0:10:43- Have you looked through the...? - Into the outside toilet.
0:10:43 > 0:10:45Yeah. I don't see the point in the outside toilet.
0:10:45 > 0:10:47- You could double the size of the kitchen.- Mm-hm.
0:10:47 > 0:10:52So that's first and foremost. There is a slight slope in the bathroom upstairs which is a huge room
0:10:52 > 0:10:56so we'll have to rip that back and have a look, get someone in to have a look at that for us.
0:10:56 > 0:10:59But hopefully there will be nothing too sinister there.
0:10:59 > 0:11:03But, yeah, so first day next week we'll rip it all back
0:11:03 > 0:11:04and see what we've got.
0:11:04 > 0:11:06And what's the kind of budget you've got set aside?
0:11:06 > 0:11:08I've estimated around seven grand.
0:11:08 > 0:11:11I think 7,000 - I've already got prices for a lot of the jobs
0:11:11 > 0:11:14that need doing - will just about cover it.
0:11:14 > 0:11:18Because a lot of it is going to be labour, and our labour is free.
0:11:18 > 0:11:21But you are doing this as a business, so you need to cost that in in the future.
0:11:21 > 0:11:24Yeah. For the next one, we're going to get,
0:11:24 > 0:11:26probably get a bit more tighter with monies.
0:11:26 > 0:11:29But for the first one, we've thought let's have a go at it,
0:11:29 > 0:11:32make sure we can do it and work together, which I'm sure we can.
0:11:32 > 0:11:34But from then on, yeah, we do.
0:11:34 > 0:11:37Ideally we'd like to do five or six a year.
0:11:37 > 0:11:39That is sort of what we want to be doing.
0:11:39 > 0:11:41One every couple of months, that's achievable.
0:11:41 > 0:11:44Now, your plan obviously is to do this up and sell it on.
0:11:44 > 0:11:47These are still quite sticky times in the old property sales world.
0:11:47 > 0:11:51What are your expectations for selling it?
0:11:51 > 0:11:54There's a house that's just sold four or five doors down.
0:11:54 > 0:11:55There's another on sale across the road.
0:11:55 > 0:11:59The average price for this type of property around here is
0:11:59 > 0:12:00sort of mid-80s.
0:12:00 > 0:12:02That's sort of where we're both looking at.
0:12:02 > 0:12:06Worst-case scenario we can sell it cheap enough to be able to move on and do other things.
0:12:06 > 0:12:09Andy and Nigel may have to take a hit on the profit
0:12:09 > 0:12:12if they end up lowering the price to sell it on.
0:12:12 > 0:12:14In order to build up their portfolio
0:12:14 > 0:12:18and renovate six properties a year, they'd better get cracking.
0:12:19 > 0:12:22So what about timescales for getting it all sorted?
0:12:22 > 0:12:24- Hopefully about six weeks. - About six weeks, yes.
0:12:24 > 0:12:26- Right. So all hands to the pumps, then?- Yeah.
0:12:26 > 0:12:29- Are you looking forward to that, the hard work?- Yeah.
0:12:29 > 0:12:31- Can't wait till Monday. - Get on with it now.- Really?
0:12:31 > 0:12:36In fact, he's actually put his work things in the back of the car in case we could do a bit this afternoon.
0:12:36 > 0:12:40But I think we'll probably leave it till Saturday morning to be quite honest.
0:12:40 > 0:12:44- But, yeah, looking forward. I'd say 80 percent of the work we'll do.- Brilliant.
0:12:44 > 0:12:46I'm delighted for you both. I'm glad we inspired you in some way.
0:12:46 > 0:12:50And wish you all the best and look forward to seeing how you get on.
0:12:50 > 0:12:51- Cheers.- Thank you, Martin.
0:12:51 > 0:12:55Well, it's great that Andy and Nigel have made the move to becoming property investors
0:12:55 > 0:12:58and can see the benefits that can bring.
0:12:58 > 0:13:00Oh, and that we had a part to play in that decision, too.
0:13:00 > 0:13:03They're obviously not shy of the hard work that'll be needed in here,
0:13:03 > 0:13:07but I am a bit concerned about trying to sell it on in difficult market conditions.
0:13:07 > 0:13:10Maybe they should consider renting which is doing well at the moment.
0:13:10 > 0:13:13You can see how they get on later in the show.
0:13:15 > 0:13:20This is Surbiton in Surrey, sitting between Kingston upon Thames
0:13:20 > 0:13:22and pretty Thames Ditton village.
0:13:22 > 0:13:25It has a wonderful river frontage and is an expensive
0:13:25 > 0:13:27and desirable area.
0:13:27 > 0:13:29Sometimes called "Suburbiton",
0:13:29 > 0:13:34it was the setting for the 1970s TV show The Good Life,
0:13:34 > 0:13:39with its rows of '30s semis and neat lawns fitting the stereotype.
0:13:39 > 0:13:44The question is, will today's property be one for the self-sufficient developer,
0:13:44 > 0:13:46and would you harvest plenty of profit?
0:13:46 > 0:13:49# The good life
0:13:49 > 0:13:52# Full of fun
0:13:52 > 0:13:57# Seems to be the ideal... #
0:13:57 > 0:14:01Trains from Surbiton will get you to London in just 20 minutes.
0:14:01 > 0:14:04The town itself is an attractive mix of Victorian architecture
0:14:04 > 0:14:09and art deco grandeur, with a pleasantly bustling vibe.
0:14:09 > 0:14:12The property I'm here to see is in a block of flats
0:14:12 > 0:14:15not far from the river, but more importantly,
0:14:15 > 0:14:18a couple of minutes from the train station.
0:14:18 > 0:14:19Commuter heaven, I love it!
0:14:19 > 0:14:22Now there are several blocks on this road, they all look very nice,
0:14:22 > 0:14:25but not quite as lovely as the Art Deco one just here.
0:14:25 > 0:14:29And luckily for me, this is where our lot is today.
0:14:29 > 0:14:32It's on the second floor, there's two bedrooms
0:14:32 > 0:14:36and the guide price - £200,000.
0:14:40 > 0:14:42I do have a soft spot for period blocks of flats
0:14:42 > 0:14:45and this one has style in spades.
0:14:45 > 0:14:48It's in an attractive red brick with staggered balconies
0:14:48 > 0:14:52which makes a change from a standard 1970s tower.
0:14:56 > 0:14:59And inside, there's a little passenger lift, very handy.
0:15:00 > 0:15:01Shame there's no porter!
0:15:04 > 0:15:05Going up.
0:15:07 > 0:15:09First floor.
0:15:11 > 0:15:14And second floor it is.
0:15:14 > 0:15:16GATES CREAK
0:15:24 > 0:15:25DOORBELL RINGS
0:15:25 > 0:15:27Ha ha! I love that bell.
0:15:27 > 0:15:29You've got to keep that! Fantastic!
0:15:29 > 0:15:32I love all these wonderful art deco features.
0:15:32 > 0:15:35This really was an era where they cared about style.
0:15:35 > 0:15:37I mean, just looking around,
0:15:37 > 0:15:40all the ceilings are beautifully curved, there's so much going on.
0:15:40 > 0:15:44I mean, look at this door handle. I love it.
0:15:44 > 0:15:45So, we have the kitchen.
0:15:45 > 0:15:49It's not the biggest of kitchens, but it really, really would work,
0:15:49 > 0:15:51once you take out some of this furniture.
0:15:51 > 0:15:52But look at this.
0:15:52 > 0:15:56This is the kitchen. This WAS the kitchen.
0:15:56 > 0:15:57I mean, look, it's incredible.
0:15:57 > 0:16:00That's where you'd have kept the brooms,
0:16:00 > 0:16:04this is where you would chop your bread,
0:16:04 > 0:16:06store your cutlery, perhaps.
0:16:06 > 0:16:08What have we got? Oh, and in here,
0:16:08 > 0:16:13you can still see the old-fashioned ironing board.
0:16:13 > 0:16:14Look at that.
0:16:14 > 0:16:16So amazing!
0:16:16 > 0:16:18And that would be worth an absolute fortune,
0:16:18 > 0:16:21but it has to go and you have to go
0:16:21 > 0:16:23with a very modern fitted kitchen in here.
0:16:23 > 0:16:26Something white, something bright, something clean.
0:16:26 > 0:16:29You've got a new boiler, which is a real plus.
0:16:29 > 0:16:32Just lovely. I really like this flat.
0:16:36 > 0:16:38Make the most of this fairly tight space
0:16:38 > 0:16:40with lots of integrated appliances
0:16:40 > 0:16:42and big, tall cupboards
0:16:42 > 0:16:45to maximise the head height available.
0:16:45 > 0:16:48The master bedroom is also a decent size
0:16:48 > 0:16:51with an original electric fire, which will have to go.
0:16:51 > 0:16:53But, as with the rest of the flat,
0:16:53 > 0:16:58you have newly installed double glazing and decent floor space.
0:16:58 > 0:17:02The second bedroom is also a double, which is very good news,
0:17:02 > 0:17:05particularly if you intend to rent the place out.
0:17:05 > 0:17:08The bathroom has certainly seen better days.
0:17:08 > 0:17:12What is worrying is the damp patch on the ceiling.
0:17:12 > 0:17:15That would be one of the first things I'd investigate here.
0:17:15 > 0:17:19And last, but not least, there's the living room.
0:17:20 > 0:17:23I think when you look round a property, you have to think,
0:17:23 > 0:17:27"Would I feel nice and cosy in the winter and cool in the summer?"
0:17:27 > 0:17:31I think this living room ticks both those boxes -
0:17:31 > 0:17:33big enough for your three-piece suite,
0:17:33 > 0:17:35but definitely cosy with...
0:17:36 > 0:17:38..this lovely little balcony!
0:17:38 > 0:17:42OK, so you're not going to entertain out here,
0:17:42 > 0:17:45but just being able to throw open these doors on a sunny day
0:17:45 > 0:17:49and extend the room, is a wonderful, wonderful thing.
0:17:49 > 0:17:52# It feels like heaven... #
0:17:52 > 0:17:55It really is a little spot of heaven,
0:17:55 > 0:17:59right here in Surbiton, and with the breeze floating in the park
0:17:59 > 0:18:01that's just across the road, on a summer's day
0:18:01 > 0:18:03it's just bliss!
0:18:03 > 0:18:06Talking of that little park, I'm heading over there too,
0:18:06 > 0:18:09not to sit and think, but to crunch some numbers.
0:18:10 > 0:18:14I don't think you need me to tell you this flat would rent in a flash.
0:18:14 > 0:18:19It's a perfect young professional pad, so close to the station,
0:18:19 > 0:18:21but nice and safe and secure
0:18:21 > 0:18:24and steps from shops and restaurants.
0:18:24 > 0:18:27In fact, this flat would prove so popular,
0:18:27 > 0:18:31you're looking at around £1,400 per month for the privilege -
0:18:31 > 0:18:35a decent, if not staggering, return on your cash,
0:18:35 > 0:18:37but a rock solid little investment.
0:18:37 > 0:18:40You mustn't forget that, in a block, you always have
0:18:40 > 0:18:44the service charge to pay, which in this case is £1,500
0:18:44 > 0:18:46a year, all in.
0:18:46 > 0:18:51Sounds expensive, but is average for a flat like this with a lift
0:18:51 > 0:18:53and communal areas to maintain.
0:18:53 > 0:18:54But there's a garage thrown into the bargain
0:18:54 > 0:18:58and you'd probably make your service charge back by renting it out
0:18:58 > 0:19:00and more, if you so choose.
0:19:00 > 0:19:03We asked along a local estate agent
0:19:03 > 0:19:08to see what he thought of this two-bed flat, guided at £200,000.
0:19:08 > 0:19:11These flats, not many have come up over the years
0:19:11 > 0:19:14for sale, so there's a few that are rented out,
0:19:14 > 0:19:18but they're popular for the location more than anything,
0:19:18 > 0:19:21because you're literally a couple of minutes walk from the town centre.
0:19:21 > 0:19:24What kind of resale price
0:19:24 > 0:19:27would he put on the property, once renovated?
0:19:27 > 0:19:29Once it's been refurbished,
0:19:29 > 0:19:32you'd be looking at putting it on for £299,000,
0:19:32 > 0:19:35with a view of getting close to that asking price.
0:19:35 > 0:19:39What rental income could it generate?
0:19:39 > 0:19:41If you put it up for rental, we're looking to achieve
0:19:41 > 0:19:44£1,400 per calendar month.
0:19:44 > 0:19:47I think this flat is a little corker.
0:19:47 > 0:19:49Do it up, rent it out, sell it on, live in it,
0:19:49 > 0:19:52you know it works every which way.
0:19:52 > 0:19:54Great location, great investment.
0:19:54 > 0:19:57Let's see who agreed at the auction.
0:20:00 > 0:20:02Who'd like to start at 200?
0:20:02 > 0:20:04200 down here. 205?
0:20:04 > 0:20:06205. 210?
0:20:06 > 0:20:09215? 211.
0:20:09 > 0:20:11212, 213...
0:20:11 > 0:20:13214, with you. 215,
0:20:13 > 0:20:15216, 217.
0:20:15 > 0:20:18218, 219.
0:20:18 > 0:20:21220. At the back, 221.
0:20:21 > 0:20:24222, 223,
0:20:24 > 0:20:28224, 225, 226.
0:20:28 > 0:20:31227, new spot. 228.
0:20:31 > 0:20:34229.
0:20:34 > 0:20:36230, 231,
0:20:36 > 0:20:39232, 233,
0:20:39 > 0:20:42234, 235,
0:20:42 > 0:20:44236, 237,
0:20:44 > 0:20:48238, 239.
0:20:48 > 0:20:51239, back in. 240?
0:20:51 > 0:20:54241, 242,
0:20:54 > 0:20:56243.
0:20:56 > 0:20:58244.
0:20:58 > 0:20:59245?
0:21:00 > 0:21:02244, first time.
0:21:02 > 0:21:03Second time...
0:21:03 > 0:21:06Third and last time, have you all done?
0:21:06 > 0:21:09Sold, 244. Well done, sir.
0:21:09 > 0:21:13With his successful bid of 244,000 was Chandan,
0:21:13 > 0:21:19a part-time property developer, who bought this flat for his daughter Shenelle to live in.
0:21:19 > 0:21:23# Every baby needs a dad, dad, daddy
0:21:23 > 0:21:26# Could my dad, daddy be you? #
0:21:26 > 0:21:30I caught up with Chandan back at the flat to find out his plans.
0:21:32 > 0:21:36- Chandan, congratulations. - Thank you very much.
0:21:36 > 0:21:39How well do you know this area?
0:21:39 > 0:21:42I have lived very near to Surbiton before.
0:21:42 > 0:21:44I know the area very well.
0:21:44 > 0:21:49When the flat came up for auction, were you, "I'm going to go for that one"?
0:21:49 > 0:21:52Yes, I did my research before.
0:21:52 > 0:21:56Being an auction, you come and do a preview and whatever.
0:21:56 > 0:22:00So I did that and looked at the area and looked at the flat
0:22:00 > 0:22:03and I thought it was just the right one for my daughter.
0:22:03 > 0:22:06- What's the story, are you buying for your daughter?- That's right.
0:22:06 > 0:22:12I'm helping her to buy this flat, though it needs a lot of work.
0:22:12 > 0:22:17Yes, with a little bit of experience that I have in doing properties,
0:22:17 > 0:22:20I thought I can manage that very easily for her.
0:22:22 > 0:22:26Chandan and his daughter, Shenelle, viewed the flat before the auction.
0:22:26 > 0:22:30Shenelle was smitten at first sight and, with her dad's reassurance
0:22:30 > 0:22:33about the work involved, she set her heart on getting the flat.
0:22:35 > 0:22:37Is this the first time she's moving out of home?
0:22:37 > 0:22:40- Oh, yes, yes. - So you're losing your little girl?
0:22:40 > 0:22:43- That's right.- You've got to make sure it's nice enough for her, and secure.
0:22:43 > 0:22:47It's going to be comfortable, we'll make it very comfortable for her, yeah.
0:22:47 > 0:22:50Shenelle must be over the moon, on top of the world
0:22:50 > 0:22:54and in seventh heaven about her first house
0:22:54 > 0:22:56but what are she and Chandan going to do here,
0:22:56 > 0:22:59starting with what's likely to be the most expensive room?
0:22:59 > 0:23:02Chandan, what are you going to do with the kitchen?
0:23:02 > 0:23:05We're going to, basically, renovate the whole kitchen.
0:23:05 > 0:23:09Take down everything and redesign it
0:23:09 > 0:23:11and try and make it into a very modern kitchen
0:23:11 > 0:23:13and a functional one, too.
0:23:13 > 0:23:16- It's not terribly large.- No.
0:23:16 > 0:23:18Are you going to create a space where you can eat in that kitchen?
0:23:18 > 0:23:24Yeah, yeah, there's going to be a breakfast bar which will couple as a dining area as well.
0:23:24 > 0:23:28Being a two-bedroomed flat, that should be ample.
0:23:28 > 0:23:31He also plans to modernise the bathroom completely,
0:23:31 > 0:23:34although Shenelle doesn't want to install a bath,
0:23:34 > 0:23:36just a shower unit.
0:23:36 > 0:23:40Personally, I'd still refit a bath as there is space
0:23:40 > 0:23:42and it's a good resale or rental feature.
0:23:42 > 0:23:46However, not such a nice water feature is that damp ceiling
0:23:46 > 0:23:49which Chandan will definitely need to sort out.
0:23:49 > 0:23:51Have you thought about your budget?
0:23:51 > 0:23:54Have you had time to write the sums down on pieces of paper yet?
0:23:54 > 0:23:56Yes, we've done our work
0:23:56 > 0:24:00and I think we can easily put this whole thing together.
0:24:00 > 0:24:04Maybe excluding some finishing products
0:24:04 > 0:24:09but within 10,000 we'll get this flat done very quickly.
0:24:09 > 0:24:12- For £10,000?- That's right.
0:24:12 > 0:24:15Wow! If you can nail it for ten grand, that's good going.
0:24:15 > 0:24:19Yeah, yeah, yeah... I think a little bit more for the finishing
0:24:19 > 0:24:20like the kitchen units, you know.
0:24:20 > 0:24:23It depends on what she wants to put in.
0:24:23 > 0:24:27But, er, otherwise within that budget is going to be quite easy.
0:24:29 > 0:24:33Well, easy if you know the right people and are a whizz at shopping around!
0:24:33 > 0:24:37Chandan has developed a number of properties and seems confident
0:24:37 > 0:24:41but I wonder if he'll be tempted, since it's for his own daughter,
0:24:41 > 0:24:43to splash out a bit more on this one.
0:24:43 > 0:24:46When is Shenelle going to be able to move in?
0:24:46 > 0:24:48What's the timescale?
0:24:48 > 0:24:52The building works from start to finish
0:24:52 > 0:24:54- will be about four weeks.- Wow!
0:24:54 > 0:24:57Do know what you're blowing me away, Chandan!
0:24:57 > 0:25:01Four weeks, £10,000, you know, I hope you are on the money there
0:25:01 > 0:25:04and I'd like to think you could do this in four weeks.
0:25:04 > 0:25:06Yeah, yeah, we'll definitely have it in four weeks.
0:25:06 > 0:25:08- So you don't see any hold-ups? - No, no.
0:25:08 > 0:25:10- You're very confident.- Oh, yes.
0:25:12 > 0:25:14- Thank you very much, indeed.- Thank you.
0:25:15 > 0:25:20Well, Shenelle has struck very lucky here. What a fabulous first home.
0:25:20 > 0:25:25Chandan has got his work cut out with only four weeks and a ten grand budget
0:25:25 > 0:25:27but, if he's clever, and I think he is,
0:25:27 > 0:25:31he might just elevate this place into something special.
0:25:31 > 0:25:34Find out how goes later on in the show.
0:25:36 > 0:25:42Coming up, this Burnley mid-terrace looks too good to be true!
0:25:42 > 0:25:45Oh, it carries on. This is wonderful.
0:25:47 > 0:25:51Chandan's builders open a can of worms in his art deco flat in Surrey.
0:25:53 > 0:25:56They found a lot more problems than we anticipated.
0:25:57 > 0:26:01But first, in Derby, Nigel's altered his priorities.
0:26:01 > 0:26:04I've seen more of my children in the last 12 months
0:26:04 > 0:26:06than I've seen in the previous 13 years.
0:26:10 > 0:26:13Back now to Alveston in Derby to check on progress
0:26:13 > 0:26:17at this decidedly dated two bedroomed mid-terrace.
0:26:17 > 0:26:22Brothers-in-law Andy and Nigel bought it at auction for 58,500.
0:26:22 > 0:26:25With a seven grand budget and a six-week timescale,
0:26:25 > 0:26:27the boys' plan was to do most of the work themselves
0:26:27 > 0:26:32as they'd both given up their day jobs and become full-time property developers.
0:26:35 > 0:26:38We're at a sort of crossroads of our careers, I would suggest,
0:26:38 > 0:26:40with a lot of the family issues we've had.
0:26:40 > 0:26:46We need to spend more time at home. We were both doing 70/80 hours a week, which was ridiculous.
0:26:46 > 0:26:50It was all work, work, work and we thought with this we can fit the work around the family,
0:26:50 > 0:26:53rather than trying to fit the family around the world.
0:26:53 > 0:26:57Four months after our first visit, we're back to see if the brothers-in-law
0:26:57 > 0:27:01have transformed the place, and also whether the house
0:27:01 > 0:27:03has transformed the brothers-in-law.
0:27:27 > 0:27:30Clearly the brothers have done a great job converting
0:27:30 > 0:27:33this tired, old house to bright and cheerful.
0:27:33 > 0:27:36How much work did it really take?
0:27:36 > 0:27:39The house wasn't too bad when we'd emptied everything.
0:27:39 > 0:27:42We found that we had to replaster the whole of the house
0:27:42 > 0:27:45which, I suppose, has been the biggest job we had to do,
0:27:45 > 0:27:46which we weren't counting on.
0:27:46 > 0:27:49Yeah, the finish has been well worth it.
0:27:49 > 0:27:52But what about that wonky floor in the bathroom upstairs?
0:27:52 > 0:27:55Was it caused by historic bomb damage?
0:27:57 > 0:28:01The first issue was we had a severe sloping floor.
0:28:01 > 0:28:05The boards should have been nailed to the joists and they hadn't been.
0:28:05 > 0:28:09That was corrected by the builder which took him two or three hours.
0:28:09 > 0:28:12The slope has now gone. Andy managed to obtain
0:28:12 > 0:28:15a very good bathroom suite from his use of the internet,
0:28:15 > 0:28:17nice vanity unit.
0:28:17 > 0:28:22The pride and joy, we've got the Jacuzzi bath,
0:28:22 > 0:28:25which is a nice way of relaxing in an afternoon with a glass of wine,
0:28:25 > 0:28:29a bottle of beer, or whatever you wish. Then, obviously, we put the shower cubicle in as well.
0:28:29 > 0:28:32I spent four days doing the tiling which, I think,
0:28:32 > 0:28:35although it's taken a long time, it's been well worth doing.
0:28:35 > 0:28:38Everything, basically, has been replaced. We're very, very happy.
0:28:38 > 0:28:41This is probably my favourite room, to be honest with you, the best room.
0:28:41 > 0:28:44# Blowing bubbles
0:28:44 > 0:28:47# Blowing bubbles
0:28:47 > 0:28:49# Blowing bubbles
0:28:49 > 0:28:52# Blowing bubbles. #
0:28:52 > 0:28:55Nigel and Andy's hard work has really paid off
0:28:55 > 0:28:58as they've already managed to find a buyer for their mid-terrace.
0:28:58 > 0:29:00And, because they haven't quite finished it yet,
0:29:00 > 0:29:05the new buyer will be able to put their own mark on the place.
0:29:06 > 0:29:09Right, the kitchen's in now.
0:29:09 > 0:29:12This was the outside toilet that we took the wall down
0:29:12 > 0:29:14and blocked up the door.
0:29:14 > 0:29:17Obviously, put a new kitchen in to try make it a bit lighter,
0:29:17 > 0:29:19we want it as light as possible.
0:29:19 > 0:29:22Nigel's part of the job was searching around for the bargain for the kitchen
0:29:22 > 0:29:26which we got for just under £1,000. So, very happy with that, including the appliances.
0:29:26 > 0:29:30Also, the lady who's bought the house wanted to choose her own tiles,
0:29:30 > 0:29:33so that's why we've not finished yet, because she's on holiday.
0:29:33 > 0:29:34But as soon as she's back
0:29:34 > 0:29:37the last touch is getting the tiling done in the kitchen.
0:29:39 > 0:29:41It's a pretty impressive job,
0:29:41 > 0:29:45as these two brothers-in-law did most of the work themselves.
0:29:45 > 0:29:48So what's that done to their outlay on the renovation?
0:29:48 > 0:29:52Budget-wise, originally we said around 7,000.
0:29:52 > 0:29:56Obviously the unforeseen things were a total rewire,
0:29:56 > 0:29:57which we didn't expect,
0:29:57 > 0:30:02and every wall, every ceiling has been boarded out and replastered,
0:30:02 > 0:30:06so it's forced the budget up to, being very precise, £9,508.
0:30:06 > 0:30:07So a little bit over
0:30:07 > 0:30:10but we think it's been worth it to get the level of the finish.
0:30:10 > 0:30:14Rather than patch things up we've done it back to the bare brick and done it right.
0:30:14 > 0:30:18That extra work meant that their six-week schedule
0:30:18 > 0:30:21has become more like four months.
0:30:21 > 0:30:25But how have they enjoyed life since giving up their day jobs in finance and sales
0:30:25 > 0:30:28to start a career in property development?
0:30:28 > 0:30:31I've seen more of my children in the last 12 months
0:30:31 > 0:30:33than I've seen in probably the previous 13 years,
0:30:33 > 0:30:35which is fantastic.
0:30:35 > 0:30:38Yeah, it's a lot better. A lot more freedom to come and go as we please.
0:30:38 > 0:30:41Well, that was the intention but we tend to get a bit more
0:30:41 > 0:30:45involved with the job and we're here for a bit longer than we thought,
0:30:45 > 0:30:48but, yeah, it's nice to be our own bosses, as such, and...yeah.
0:30:48 > 0:30:51I think it's the best decision I've ever made, to be quite honest.
0:30:51 > 0:30:54Enjoy every day, have a laugh and a joke.
0:30:54 > 0:30:58Hopefully we're going to do well as regards...obviously the finances are
0:30:58 > 0:31:01an important side of things as well, and I've got no regrets whatsoever.
0:31:01 > 0:31:03They may have enjoyed it,
0:31:03 > 0:31:07but have they made a decent profit on their first renovation?
0:31:07 > 0:31:11In fact, the boys have already managed to sell the property,
0:31:11 > 0:31:14and their total spend on the project comes in at around 68,000.
0:31:14 > 0:31:17We asked along two local property experts
0:31:17 > 0:31:20to get their take on this mid-terrace.
0:31:20 > 0:31:24First impressions when you walk in, the property is light and airy,
0:31:24 > 0:31:26makes the rooms look bigger.
0:31:26 > 0:31:29They've utilised the space well upstairs
0:31:29 > 0:31:31and it's got a nice homely feel.
0:31:31 > 0:31:35I think opening up the space downstairs was a very wise move.
0:31:35 > 0:31:38Kitchens in these sort of houses are notoriously small and,
0:31:38 > 0:31:41with everything that comes with 21st century living, they're cluttered,
0:31:41 > 0:31:46so extra space is an advantage, so, yes, it's a good move.
0:31:48 > 0:31:53The experts agree that it could rent out for between £450
0:31:53 > 0:31:55and £475 per calendar month,
0:31:55 > 0:31:58which would mean a healthy yield of around 8% to 8.5%.
0:31:58 > 0:32:03The boys have already sold the property, but what do the experts think it would sell for?
0:32:04 > 0:32:06If this went on the market for sale,
0:32:06 > 0:32:10I would expect it to achieve a figure between £85,000 and £90,000.
0:32:10 > 0:32:12If I was to market the property for sale,
0:32:12 > 0:32:19I would expect to achieve between... £80,000 and £90,000.
0:32:19 > 0:32:24- The fact that we've sold it for 86.5, that seems absolutely perfect. I'm well happy with that.- Spot on.
0:32:26 > 0:32:30In fact, the boys are looking at a gross profit before fees and expenses
0:32:30 > 0:32:32of £18,500,
0:32:32 > 0:32:37which is pretty darn good for their first renovation.
0:32:37 > 0:32:40So, any advice for prospective full-time property developers?
0:32:40 > 0:32:44Definitely the right thing to do, so long as you do your research, which Nigel's done for us.
0:32:44 > 0:32:49And take the plunge and give it a go. If you don't give it a go you never know. Life's too short.
0:32:53 > 0:32:57Today I'm in the village of Worsthorne in Lancashire,
0:32:57 > 0:32:59just a couple of miles from Burnley.
0:32:59 > 0:33:01# Burn, baby, burn
0:33:02 > 0:33:05# Burn, baby, burn... #
0:33:05 > 0:33:09- HE CHUCKLES - Worsthorne has a lovely villagey feel
0:33:09 > 0:33:12and, with such beautiful countryside on the doorstep,
0:33:12 > 0:33:15I think we could be in for a bit of a treat here.
0:33:15 > 0:33:18It really is a bit of a gem, this place.
0:33:18 > 0:33:23So, will the property I'm here to see match the beauty of the surroundings?
0:33:23 > 0:33:27It certainly sounds all right. £85,000-plus was the guide price.
0:33:27 > 0:33:31Two-bed mid-terrace cottage built around 1800.
0:33:31 > 0:33:34Let's take a look inside.
0:33:35 > 0:33:38It certainly looks the part from the outside.
0:33:38 > 0:33:43Nice and tidy, with a new door and windows. So far, so good.
0:33:44 > 0:33:49So, what's on offer? Ooh. That's a bit of double-glazed door there.
0:33:49 > 0:33:55Holy schmoley, look at this! How fantastic. What a surprise.
0:33:55 > 0:33:58Not quite the little cutesy-wutesy cottage I was expecting,
0:33:58 > 0:34:01but somewhere that looks like it's been totally done up.
0:34:01 > 0:34:03Got an open-plan staircase there.
0:34:03 > 0:34:06Looks like a reasonably newish fire surround.
0:34:06 > 0:34:09I would have liked to have seen an open fire in there.
0:34:09 > 0:34:11That's what you expect in a cottage.
0:34:11 > 0:34:15But obviously somebody's spent a lot of money on the floor.
0:34:15 > 0:34:17A really nice-size entrance.
0:34:17 > 0:34:22It doesn't feel cramped, it doesn't feel, I don't know, claustrophobic.
0:34:22 > 0:34:24What about the kitchen?
0:34:24 > 0:34:26- HE LAUGHS - Oh, it carries on!
0:34:26 > 0:34:30This is wonderful. Bit of a flagstoney type floor.
0:34:30 > 0:34:36Obviously a beautifully restored, fairly new-looking kitchen.
0:34:36 > 0:34:38Well, there you go.
0:34:38 > 0:34:41Want a property that's already been sorted out? This is your baby.
0:34:41 > 0:34:45# Yes, sir That's my baby, now... #
0:34:47 > 0:34:49You could easily leave things as they are here,
0:34:49 > 0:34:53but if you wanted a project you could perhaps look into
0:34:53 > 0:34:56extending the kitchen into the rather small back yard.
0:34:56 > 0:34:59But personally I'd find it hard to justify ripping out
0:34:59 > 0:35:02a pretty much brand-new kitchen.
0:35:03 > 0:35:06So, fairly high expectations as you walk upstairs,
0:35:06 > 0:35:09because is it going to be like downstairs?
0:35:09 > 0:35:12Well, small bedroom at the back onto this reasonable-size landing
0:35:12 > 0:35:15and, great news, upstairs bathroom.
0:35:15 > 0:35:19It hasn't actually got a bath in it, it's got a beautiful shower though,
0:35:19 > 0:35:22and actually, again, like downstairs, totally renovated.
0:35:22 > 0:35:27And then through into your main bedroom. Again, nice condition.
0:35:27 > 0:35:31You know, it's a great little property.
0:35:31 > 0:35:36# There ain't nothing left to do now that we've done it... #
0:35:36 > 0:35:40You might think about going up into the loft and creating more space,
0:35:40 > 0:35:43but would you really want to go through all the hassle?
0:35:43 > 0:35:45I'm not so sure.
0:35:45 > 0:35:48The mid-terrace went to auction with a guide price of 85,000.
0:35:48 > 0:35:51We asked a local property expert to have a look around
0:35:51 > 0:35:52and give us his thoughts.
0:35:54 > 0:35:58First impressions of the property were really good.
0:35:58 > 0:36:00It needs hardly any work at all that we can see.
0:36:00 > 0:36:04You know, other than perhaps some cosmetic changes that would be
0:36:04 > 0:36:08individual decisions anyway, so, yeah, very good.
0:36:10 > 0:36:12What about doing a loft conversion?
0:36:13 > 0:36:16If we were to look at the conversion of the loft,
0:36:16 > 0:36:18that will add some value.
0:36:18 > 0:36:22It will probably only add value to the cost of doing the work.
0:36:22 > 0:36:25But you can spend £5,000-£10,000 on a loft conversion,
0:36:25 > 0:36:28so that's probably in the region of the amount of value it would add.
0:36:31 > 0:36:35What about the resale value of the property?
0:36:35 > 0:36:38If the property was extended into the loft
0:36:38 > 0:36:42and possibly an extension at the back to add some storage space,
0:36:42 > 0:36:45the market's still very tough, it's tough times,
0:36:45 > 0:36:48but you could see the property valued at around £130,000.
0:36:49 > 0:36:52What could this place rent out for as it stands?
0:36:52 > 0:36:57I think you would comfortably get £475-£500 per calendar month.
0:36:57 > 0:37:01And if the mid-terrace were extended?
0:37:01 > 0:37:03If the loft conversion was done
0:37:03 > 0:37:06and the extension to the back of the property,
0:37:06 > 0:37:08I think it would make it more desirable
0:37:08 > 0:37:11but it wouldn't necessarily add any more value to the rental market.
0:37:11 > 0:37:15We'd probably still be at around that £500 per calendar month.
0:37:15 > 0:37:19Well, there really is no point in searching for problems where there aren't any
0:37:19 > 0:37:23and in the case of this little place there really aren't any.
0:37:23 > 0:37:26It's a great location, it's a lovely little house.
0:37:26 > 0:37:29Let's see who bought it when it went under the hammer.
0:37:31 > 0:37:33OK, Lot 26.
0:37:33 > 0:37:35Beautiful cottage inside, this one.
0:37:37 > 0:37:41What price shall we say for this? 80,000? 80,000 anywhere?
0:37:41 > 0:37:4780,000. At 80,000 bid. 80,000 I have, then. Do we see 82?
0:37:47 > 0:37:5080 I have. 82 I'll take. At 80,000. 81. No, 82.
0:37:50 > 0:37:54At 82,000. You bid, two of you. 84?
0:37:54 > 0:37:5582 seated. 84 anywhere?
0:37:55 > 0:37:57At 84. 86?
0:37:57 > 0:37:59At 87. No?
0:37:59 > 0:38:0185. At 85,000. 86?
0:38:03 > 0:38:04At 86. No?
0:38:04 > 0:38:08At 85,000, then, are we all done? At 85,000 for the first time...
0:38:08 > 0:38:1186. At 86,000. 87?
0:38:11 > 0:38:15At 87. 88? No? At 87,000, then, for the first time.
0:38:15 > 0:38:20At 87,000 for the second and final time. Are we all done at £87,000?
0:38:22 > 0:38:26Ooh, good grief. 88. At 89, then. At 90?
0:38:26 > 0:38:30At 89. At 89,000, are we all done? At 89 for the first time.
0:38:30 > 0:38:33Second time at 89,000. Are we all done and dusted?
0:38:33 > 0:38:36Are you sure? Pull you in? No?
0:38:36 > 0:38:39OK, well, I'm going to withdraw it. We're close.
0:38:39 > 0:38:42Might be able to have a fight in the foyer. See who's going to win it.
0:38:43 > 0:38:46Well, no need for fisticuffs as it turned out,
0:38:46 > 0:38:51because, although the mid-terrace failed to meet its reserve, it did get a result.
0:38:51 > 0:38:55Keeping a close ear on how the bidding was going via telephone
0:38:55 > 0:38:58was Kieran, who runs a sports coaching company.
0:38:58 > 0:39:01He put an offer to the auction house afterwards
0:39:01 > 0:39:05and a deal was struck at the reserve price of £90,000.
0:39:05 > 0:39:10Kieran and his fiancee Rachel have bought this as their first home.
0:39:10 > 0:39:13- Kieran, lovely to meet you. - Thank you.- Congratulations.
0:39:13 > 0:39:15Explain to me what happened there, then.
0:39:15 > 0:39:18Well, basically the property went to auction.
0:39:18 > 0:39:22We heard it didn't sell, which was a bonus for us,
0:39:22 > 0:39:26and basically we put an offer in the next day, accepted,
0:39:26 > 0:39:28and we proceeded from there, really.
0:39:28 > 0:39:31Fantastic. You keep talking about "we". Who's "we"?
0:39:31 > 0:39:34Me and my fiancee, Rachel.
0:39:34 > 0:39:38So she was like the sensible one, saying, don't do it, don't do it.
0:39:38 > 0:39:40And really I just went for it,
0:39:40 > 0:39:44asked a few local friends who's familiar with property and I just went for it.
0:39:44 > 0:39:48So why was she so sort of...cautious?
0:39:48 > 0:39:52Just because she's saved up and worked hard for a deposit,
0:39:52 > 0:39:57her side as well, and just basically she's...really like that,
0:39:57 > 0:40:02she's sensible, whereas I'm business, I'm a businessman, so I take risks.
0:40:02 > 0:40:07- How does she feel now?- She feels excited, she's really pleased.
0:40:07 > 0:40:12- I think she feels like I made the right decision.- Phew!- Yeah.
0:40:12 > 0:40:14A good decision indeed.
0:40:17 > 0:40:19Kieran put a bit of local knowledge to good use
0:40:19 > 0:40:22when it came to settling on the mid-terrace.
0:40:23 > 0:40:27We are very familiar with the area, being a local lad.
0:40:27 > 0:40:31I'm very into running, cycling, fitness, so we can go over the moors.
0:40:31 > 0:40:37Very familiar routes locally, and our family is close by as well.
0:40:37 > 0:40:43So it is nice, and everybody can come round and visit and settle in here.
0:40:43 > 0:40:47- I feel it is a nice, gathering, open space for people to gather. - Fantastic.
0:40:47 > 0:40:49You're a businessman, what do you do when not doing this?
0:40:49 > 0:40:52- I run a sports coaching and creative play company.- Great!
0:40:52 > 0:40:56We do education programmes round schools,
0:40:56 > 0:41:01community sports coaching around the area, and it's just,
0:41:01 > 0:41:05I just love working with children, and Rachel is a physiotherapist as well.
0:41:05 > 0:41:09- Sounds fabulous.- It's great, yeah. - What about experience with property?
0:41:09 > 0:41:11Not a lot.
0:41:11 > 0:41:17I've a really good close friend who is brilliant with property, knows a lot.
0:41:17 > 0:41:22- Apart from that, I haven't got a clue.- So has your friend had a look?
0:41:22 > 0:41:28He has popped round, he's had a look. Once we got it, he was shocked.
0:41:28 > 0:41:32He really liked the property. He said it's got great potential.
0:41:32 > 0:41:38He liked all the features and aspects, how it is all original.
0:41:38 > 0:41:41That must've been reassuring for you and your partner.
0:41:41 > 0:41:46Yeah, it was, especially Rachel. She felt a bit more at ease.
0:41:46 > 0:41:48Tell me what you're going to do with the place.
0:41:48 > 0:41:53- I'm thinking of a twilight loft conversion up in the loft.- What?
0:41:53 > 0:41:57- Twilight?- You know like when you have the glass scenery from the roof?
0:41:57 > 0:42:01The open space where you can look out on the roof attic conversion.
0:42:01 > 0:42:03Wow, OK.
0:42:03 > 0:42:09Basically, at the back, we've got a bit of storage which I'm hoping to do something with.
0:42:09 > 0:42:12Just tidy the whole property up. Make it our own.
0:42:12 > 0:42:16Obviously, have a cottage feel, such as a log burner,
0:42:16 > 0:42:19new surround fireplace.
0:42:19 > 0:42:22There is a possibility of extending out the back.
0:42:22 > 0:42:26- Have you thought about that? - We have, but who knows?
0:42:26 > 0:42:30It's up to my fiancee, to be fair, because I keep out of that.
0:42:30 > 0:42:36- I say my ideas, but it's her last word.- Is it?- Yeah, sometimes.
0:42:36 > 0:42:39I've just got to say that to keep in the good books!
0:42:39 > 0:42:43Sounds like Kieran is doing his best not to rock the boat
0:42:43 > 0:42:45with his fiancee Rachel.
0:42:49 > 0:42:51And there is method in his madness,
0:42:51 > 0:42:57because Kieran has designs on that possible loft conversion.
0:42:57 > 0:42:59I want a computer room upstairs, get my friends round
0:42:59 > 0:43:01and have an Xbox night, as you do.
0:43:01 > 0:43:03HE LAUGHS
0:43:03 > 0:43:07But no, I don't think I'll be allowed to do that.
0:43:07 > 0:43:09How much money have you got to spend?
0:43:09 > 0:43:13Not a lot, really, but we're hoping to save up and I'm hoping to channel
0:43:13 > 0:43:16all the money and effort working for the house really.
0:43:16 > 0:43:19- It's an investment. - Budget for the work?
0:43:19 > 0:43:23I'm looking for around about £15,000 to do the work
0:43:23 > 0:43:27and improve everything, clean up a few areas.
0:43:27 > 0:43:29Would that include an extension?
0:43:30 > 0:43:33Touching on it, just to tidy up the back,
0:43:33 > 0:43:36because it is not clear yet what we want to do.
0:43:36 > 0:43:38But maybe the loft bit,
0:43:38 > 0:43:41the conversion there would be a good idea to start.
0:43:41 > 0:43:43What kind of timescale for getting it sorted?
0:43:43 > 0:43:46I'm looking between eight to 12 months.
0:43:46 > 0:43:49Listen, I'm delighted for you, congratulations,
0:43:49 > 0:43:51good luck with it, and we look forward to seeing how you get on.
0:43:51 > 0:43:52Thank you. Cheers.
0:43:55 > 0:43:59Well, sometimes you do have to take a bit of a leap of faith,
0:43:59 > 0:44:01but it certainly seems to have turned out pretty well
0:44:01 > 0:44:03for Kieran and his fiancee.
0:44:03 > 0:44:07Will he end up with that room that he wants?
0:44:07 > 0:44:10Or will his fiancee get her away? You can find out later in the show.
0:44:13 > 0:44:17Making the right decisions can seriously affect the profit
0:44:17 > 0:44:18you make on a property.
0:44:18 > 0:44:21It is exciting turning dreams into reality,
0:44:21 > 0:44:24but did our buyers get it right?
0:44:24 > 0:44:25Time to find out.
0:44:26 > 0:44:28We're back in Surbiton in Surrey,
0:44:28 > 0:44:35where this two-bedroom second-floor flat sold at auction for £244,000.
0:44:35 > 0:44:38I met up with part-time property developer Chandan,
0:44:38 > 0:44:42who was helping his daughter out with her first home.
0:44:42 > 0:44:47I'm helping her to buy this flat, although it needs a lot of work.
0:44:47 > 0:44:50But yes, with the little bit of experience I have
0:44:50 > 0:44:55doing properties, I thought I can manage that very easily for her.
0:44:55 > 0:44:59- Is this going to be the first time she's moving out of home?- Yes.
0:44:59 > 0:45:02- So you're losing your little girl! - That's right.
0:45:02 > 0:45:04You've got to make sure it's nice and secure.
0:45:04 > 0:45:09It's going to be comfortable, we'll make it very comfortable for her.
0:45:09 > 0:45:14We returned seven weeks later to see if this flat was ready for the apple of Chandan's eye to move into.
0:45:37 > 0:45:41The flat has been completely transformed, and now has a new kitchen...
0:45:43 > 0:45:45new flooring...
0:45:47 > 0:45:49and complete redecoration throughout.
0:45:52 > 0:45:55It looks modern and fresh.
0:45:58 > 0:46:01A new bathroom suite has been installed,
0:46:01 > 0:46:04and they have put a bath in after all,
0:46:04 > 0:46:09which in my opinion, was absolutely the right thing to do.
0:46:09 > 0:46:14The flat looks really great, so how much work has actually gone on here?
0:46:14 > 0:46:20We've basically retiled the bathroom and the kitchen completely.
0:46:20 > 0:46:23And the kitchen, we put underfloor heating,
0:46:23 > 0:46:27and the flooring in the rest of the house has been insulated,
0:46:27 > 0:46:33and then we got engineered wood flooring, which is real wood,
0:46:33 > 0:46:38and new radiators in the bedroom that didn't have one
0:46:38 > 0:46:39and also in the living room.
0:46:39 > 0:46:42And a gas fire in the living room as well.
0:46:42 > 0:46:46This flat has certainly scrubbed up beautifully,
0:46:46 > 0:46:49but were there any unforeseen problems during the renovation?
0:46:51 > 0:46:56The builders obviously started working and they found a lot
0:46:56 > 0:47:01more problems than we anticipated, especially with the wallpaper.
0:47:03 > 0:47:05As we were taking it off, the plaster just crumbled.
0:47:05 > 0:47:08That means we had to take it down to brick,
0:47:08 > 0:47:12and then replaster all the walls.
0:47:12 > 0:47:15As we started to take the wallpaper and the plaster off,
0:47:15 > 0:47:19then we realised there was a serious leak from upstairs.
0:47:19 > 0:47:23Obviously, then we had to go to the managing agent
0:47:23 > 0:47:26and the people upstairs and tell them about the leak.
0:47:26 > 0:47:30The water, as you can see, still not dried out.
0:47:30 > 0:47:33But we're just waiting for that to happen.
0:47:33 > 0:47:36That means they aren't quite able to finish the bathroom yet.
0:47:36 > 0:47:40But that aside, everything else is complete.
0:47:40 > 0:47:43When we were here last, Chandan estimated it would take
0:47:43 > 0:47:47just four weeks to finish the work on a budget of £10,000.
0:47:47 > 0:47:50So, how did he get on?
0:47:50 > 0:47:57Took us about six weeks, and the budget, I think,
0:47:57 > 0:48:00we spent around 15,000.
0:48:00 > 0:48:05A little bit over on both counts, but not surprising given the damp issues.
0:48:05 > 0:48:09I really want to know what Shenelle thinks of her new pad.
0:48:11 > 0:48:17She hasn't seen the final state yet, because she's been travelling,
0:48:17 > 0:48:22but she saw it between and she loved it, she said it was coming on nicely.
0:48:22 > 0:48:26I think now we have to surprise her when everything is just finished.
0:48:26 > 0:48:31So doting dad Chandan will have to wait for his daughter's thank-yous a bit longer.
0:48:31 > 0:48:35But with his property developer's hat on, how has it gone for him?
0:48:35 > 0:48:38I think it's quite a pleasant experience,
0:48:38 > 0:48:42apart from a little overspending, over the time.
0:48:42 > 0:48:48But I think it was quite pleasant. Enjoyed it. Yes.
0:48:48 > 0:48:51OK, time to tot up some figures.
0:48:51 > 0:48:54The flat cost £244,000 at auction,
0:48:54 > 0:48:59and the renovation cost a further £15,000.
0:48:59 > 0:49:03That makes a total of £259,000, plus tax and fees.
0:49:03 > 0:49:08We asked to local estate agents what they think of this swish Surbiton apartment.
0:49:10 > 0:49:14I think it's superb, it feels very bright and airy, a lovely feel
0:49:14 > 0:49:18about it, love the balcony, think that's a fantastic selling point,
0:49:18 > 0:49:22and it's fantastic the colours are very neutral, which suits everybody.
0:49:22 > 0:49:25The accommodation is really good, the lounge
0:49:25 > 0:49:27and master bedroom very nice sizes, kitchen
0:49:27 > 0:49:31and bathroom particularly nice, very good finish and good sizes.
0:49:32 > 0:49:33Questionable second bedroom,
0:49:33 > 0:49:38but probably just about OK for this marketplace.
0:49:38 > 0:49:41The estate agents reckon it could make between 1,200
0:49:41 > 0:49:47and 1,250 a month in rental, a yield of between 5.5 and 6%,
0:49:47 > 0:49:51but have Chandan's improvements added any value?
0:49:51 > 0:49:55What could it make if sold, bearing in mind the total outlay of £259,000?
0:49:57 > 0:50:02I could put this on the market for in the region of £315,000-£320,000.
0:50:02 > 0:50:06If we was to put this on the open market for sale,
0:50:06 > 0:50:10we would put it on for £325,000.
0:50:10 > 0:50:17I would have been happy with 310, but 325 is good.
0:50:17 > 0:50:18Shenelle will be very happy.
0:50:18 > 0:50:22I think Chandan is very happy too, and no wonder.
0:50:22 > 0:50:26That's a potential profit of between 56 and £66,000,
0:50:26 > 0:50:29minus tax and expenses.
0:50:29 > 0:50:33So, does that mean he'll be tempted back to auction again?
0:50:33 > 0:50:36Oh, I would definitely be going to the auctions again,
0:50:36 > 0:50:39because I enjoy doing this.
0:50:44 > 0:50:48Back now Worsthorne in Lancashire to check on progress at this
0:50:48 > 0:50:49two bedroomed mid-terrace.
0:50:49 > 0:50:53Sports coach Kieron and his physiotherapist fiancee Rachel
0:50:53 > 0:50:58bought it for £90,000 as their first home.
0:50:58 > 0:51:01A lot of work had already been done on the property, but Kieran
0:51:01 > 0:51:04had designs on a loft conversion if he could get Rachel onside.
0:51:05 > 0:51:08I want a computer room upstairs, so I can invite my friends round
0:51:08 > 0:51:10and have an Xbox night, as you do.
0:51:10 > 0:51:14But who knows? It's up to my fiancee, to be fair.
0:51:14 > 0:51:16Because I really keep out of that, I say my ideas,
0:51:16 > 0:51:19but it's her last word, I suppose.
0:51:19 > 0:51:22- Is it?- Yeah, sometimes.
0:51:22 > 0:51:25I've just got to say that to keep in the good books.
0:51:26 > 0:51:30The couple gave themselves a budget of up to £15,000,
0:51:30 > 0:51:33and between eight months and a year to do the work.
0:51:33 > 0:51:3612 months after our first visit,
0:51:36 > 0:51:38we are back to see how things have gone.
0:51:52 > 0:51:55Well, no signs of the loft conversion yet,
0:51:55 > 0:51:58but Kieran and Rachel have made their mark on
0:51:58 > 0:52:02the property by redecorating and making the place their own.
0:52:02 > 0:52:05It feels really homely for a first home and just to get settled
0:52:05 > 0:52:08and try and develop things from my work end.
0:52:08 > 0:52:12It's easy to commute from work to and from.
0:52:12 > 0:52:17Same for my fiancee. And basically it's just great.
0:52:17 > 0:52:20# Goodness gracious great balls of fire. #
0:52:22 > 0:52:24The log burning stove is a very welcome addition,
0:52:24 > 0:52:27but Kieron was definitely playing with fire
0:52:27 > 0:52:31when he had it put in without his fiancee, Rachel, knowing.
0:52:31 > 0:52:35She liked the old fire that was in, the old gas fire.
0:52:35 > 0:52:39I wasn't into that whatsoever, so basically one day she was at work,
0:52:39 > 0:52:43me and my dad and my local friend, who is a plumber
0:52:43 > 0:52:45we just decided to pull it all out.
0:52:45 > 0:52:49The fireplace was on the street and she come home from work after
0:52:49 > 0:52:56working a hard shift and she was just absolutely distraught.
0:52:56 > 0:52:59I said, it's all in good stead, it's all going to be OK,
0:52:59 > 0:53:01it's going to be nice.
0:53:01 > 0:53:04There was dust everywhere and the place was a mess.
0:53:04 > 0:53:08So that was my first upset with her, so yeah.
0:53:08 > 0:53:09That's where we are up to.
0:53:09 > 0:53:10But thankfully,
0:53:10 > 0:53:15Rachel has warmed to the cosy glow of the wood burner and who wouldn't.
0:53:15 > 0:53:20# But I'm going to be warm this winter. #
0:53:20 > 0:53:24Upstairs, the bathroom remains as was.
0:53:24 > 0:53:27But the two bedrooms have both been redecorated.
0:53:27 > 0:53:30But what is going on at the top of the stairs, exactly?
0:53:31 > 0:53:35We've got plans to have a loft extension on the top.
0:53:35 > 0:53:38We've got a local builder to come in, make the plans
0:53:38 > 0:53:40and actually crack on with that.
0:53:40 > 0:53:45And I think they are going through the stage of passing that through.
0:53:46 > 0:53:49But, even without the loft conversion, all is not lost.
0:53:49 > 0:53:52Because Kieran has been allowed to use the spare bedroom
0:53:52 > 0:53:54as his computer room.
0:53:57 > 0:54:02In this room, we've redecorated everywhere and then obviously using
0:54:02 > 0:54:03it as an office space
0:54:03 > 0:54:06because I like to run my business some days from home
0:54:06 > 0:54:07as we get really busy.
0:54:07 > 0:54:10And also, I'm going to be getting a game station
0:54:10 > 0:54:12so I can relax in here with my friends,
0:54:12 > 0:54:15and we are very pleased with it.
0:54:15 > 0:54:18So, the clock has been ticking and a year on,
0:54:18 > 0:54:22Kieran and Rachel have created a lovely first home.
0:54:22 > 0:54:24But they are not getting to settle, oh no!
0:54:24 > 0:54:26Their plan is to do the loft conversion in the next year,
0:54:26 > 0:54:32then rent the property out and move on to a new renovation project.
0:54:32 > 0:54:35Their initial budget was £15,000 for all the work,
0:54:35 > 0:54:37including the loft conversion.
0:54:37 > 0:54:39How much of that have they spent so far?
0:54:40 > 0:54:43Four grand, something like that. Not even that.
0:54:43 > 0:54:46So, it's about the 4k mark.
0:54:46 > 0:54:50So, £4,000 on top of their purchase price of 90,000,
0:54:50 > 0:54:55makes a total outlay of £94,000 to this point.
0:54:55 > 0:55:01We asked two property experts for their thoughts on the work so far.
0:55:01 > 0:55:05It's a really nicely presented property.
0:55:05 > 0:55:07It's a cottage, and it still got the feel of that,
0:55:07 > 0:55:09but it's got some modern influences as well.
0:55:09 > 0:55:13The cottage is generally tidy, clean and well presented.
0:55:13 > 0:55:17A little work round the edges could still do with finishing off. But generally speaking,
0:55:17 > 0:55:19ready to live in or rent out.
0:55:19 > 0:55:22As it stands, without the loft conversion,
0:55:22 > 0:55:26how much do they think the property could fetch on the resale market?
0:55:27 > 0:55:30I would think the value is somewhere in the region
0:55:30 > 0:55:32of £100-£105,000.
0:55:32 > 0:55:34If it was going on the market for sale,
0:55:34 > 0:55:37I would expect to be asking £115-£120,000.
0:55:37 > 0:55:40And that would be a reasonable price in this market.
0:55:40 > 0:55:45That's fine, exactly what we're looking for, yeah. Super.
0:55:45 > 0:55:48That's a potential gross profit of between six and £26,000.
0:55:48 > 0:55:53But Kieran and Rachel hope to rent this out,
0:55:53 > 0:55:55so what kind of income could they get?
0:55:55 > 0:55:59I would think you would be looking somewhere in the region
0:55:59 > 0:56:02of £475-£500 per calendar month.
0:56:02 > 0:56:06In the current market I would expect to be asking £475,
0:56:06 > 0:56:09£500 per calendar month.
0:56:09 > 0:56:13That's excellent, great. Yeah, fantastic.
0:56:13 > 0:56:17That's a respectable potential yield of around 6%.
0:56:17 > 0:56:20The experts agree that a loft conversion would not
0:56:20 > 0:56:22necessarily add a lot of value to the property.
0:56:22 > 0:56:24So if Kieran and Rachel
0:56:24 > 0:56:29are going to rent the place out, that might be money up the chimney.
0:56:29 > 0:56:32But how does Kieran feel that it's all come together?
0:56:33 > 0:56:36Dead pleased, brilliant.
0:56:36 > 0:56:40It's fantastic and just hope to move on now into the future.
0:56:40 > 0:56:42Yeah, that's great.
0:56:44 > 0:56:48We hope you have enjoyed our insight into the world of property auctions.
0:56:48 > 0:56:51And if you have, join us next time for more Homes Under The Hammer.
0:56:51 > 0:56:53- See you then.- Goodbye.- Goodbye.