0:00:00 > 0:00:03Hello. Now, with the property market in a state of flux,
0:00:03 > 0:00:05you have to make your own decisions,
0:00:05 > 0:00:08do your research and trust your instincts.
0:00:08 > 0:00:12One way to find out how the market is performing is to see for yourself
0:00:12 > 0:00:16and you can get a grandstand view at a property auction.
0:00:42 > 0:00:44All sorts of properties go up for auction.
0:00:44 > 0:00:48There are hundreds of lots on offer every month all around the country.
0:00:48 > 0:00:51So why not nip along to your local auction house and see what
0:00:51 > 0:00:52they've got for sale.
0:00:52 > 0:00:55Here's what we've got for you on today's show.
0:00:56 > 0:01:01If you can't stand the heat in this Jarrow kitchen there are two ways to leave.
0:01:01 > 0:01:05You've now got a door and an archway which is a little bit odd.
0:01:06 > 0:01:09In Harlesden, London, this property with two flats may look
0:01:09 > 0:01:12inviting from outside but step inside...
0:01:12 > 0:01:15It's quite oppressive and gloomy.
0:01:15 > 0:01:19And this two-bed terraced house in Salford has some character
0:01:19 > 0:01:22feature NOT built to last.
0:01:22 > 0:01:23But you've got a half-decent...
0:01:23 > 0:01:25I was going to say a half-decent fireplace.
0:01:28 > 0:01:30All these properties are being sold at auction.
0:01:30 > 0:01:34We'll find out who bought them and what they paid when they went under the hammer.
0:01:34 > 0:01:35That's your property, sir.
0:01:42 > 0:01:47This is Jarrow in the Northeast between Southshields and Newcastle.
0:01:47 > 0:01:50It's known for St Paul's church, once home to the scholar,
0:01:50 > 0:01:56the Venerable Bede and as a place of worship for over 1,300 years.
0:01:56 > 0:02:00I'm heading just one mile from the centre of town to a very special spot.
0:02:02 > 0:02:06This is the popular Primrose area and behind me
0:02:06 > 0:02:10is the Primrose conservation area, absolutely glorious.
0:02:10 > 0:02:13How fantastic to have that very close to where you live,
0:02:13 > 0:02:17or even better, literally across the road from it.
0:02:25 > 0:02:27With this right on your doorstep it feels
0:02:27 > 0:02:30more like living in the middle of the countryside
0:02:30 > 0:02:34so I hope I'll take to the property like a duck to water.
0:02:38 > 0:02:40So, what am I here to see?
0:02:40 > 0:02:43Well, it's a two-bedroomed, semi-detached,
0:02:43 > 0:02:45ex-local authority property.
0:02:45 > 0:02:48Had a guide price of 55,000 quid.
0:02:48 > 0:02:53We know the views are good but what's it going to be like inside?
0:02:55 > 0:02:58Ah, OK. Don't particularly like that - through the front door
0:02:58 > 0:03:01and you're immediately faced by this pillar.
0:03:01 > 0:03:04A dividing wall between the stairs and the rest of the room here.
0:03:04 > 0:03:08And I think that's there to create more room in the living room
0:03:08 > 0:03:10and it certainly does that quite effectively
0:03:10 > 0:03:13but as an opening gambit for the house - not ideal.
0:03:13 > 0:03:17Good to see it's got lovely views over that conservation area
0:03:17 > 0:03:19which is REALLY good.
0:03:19 > 0:03:22This room though, well, it's a good size in here
0:03:22 > 0:03:26but it gets kind of strange as you move this way,
0:03:26 > 0:03:29because there's a door here which leads through to the kitchen,
0:03:29 > 0:03:33but at some point obviously in the past, somebody's put in this little archway
0:03:33 > 0:03:37so you've now got a door and an archway which is a little bit odd.
0:03:37 > 0:03:42But it does give a nice open-plan feel to this whole area.
0:03:42 > 0:03:45The kitchen, well, nasty damage on the work surface,
0:03:45 > 0:03:48the units are obviously past their best,
0:03:48 > 0:03:50so spend a bit of money in here.
0:03:50 > 0:03:52But it's a good-sized property
0:03:52 > 0:03:55and certainly you can't complain about those views.
0:03:57 > 0:03:59This is one of the few properties on the street luck enough
0:03:59 > 0:04:02to benefit from views of that lovely conservation area.
0:04:06 > 0:04:08And with a little work on re-jigging
0:04:08 > 0:04:12and reinstating the downstairs of this house would work well.
0:04:12 > 0:04:14At the back of it there's a handy utility area
0:04:14 > 0:04:17and WC which could do with being replaced,
0:04:17 > 0:04:19as could the bathroom upstairs.
0:04:19 > 0:04:22It's certainly seen brighter days.
0:04:23 > 0:04:25There are two bedrooms, both a good size
0:04:25 > 0:04:28and just in need of some cosmetic attention.
0:04:29 > 0:04:31The front one, as downstairs, is all about the scenery.
0:04:35 > 0:04:38Well, as well as those great views out the front,
0:04:38 > 0:04:42at the rear of the property there's also a bit of a garden.
0:04:42 > 0:04:46The only problem is...look at the shape!
0:04:46 > 0:04:49I guess it comes from the position of the property.
0:04:49 > 0:04:52It's this extraordinary triangle.
0:04:52 > 0:04:56I guess, fantastic for growing cheese, perhaps?!
0:04:56 > 0:05:00Well, I think you'd need to consider "Caerphilly"... Ooh!
0:05:00 > 0:05:03..how to make the best use of this strangely shaped space.
0:05:03 > 0:05:06Before I attempt anymore cheesy jokes, it's time we invited
0:05:06 > 0:05:12local property expert to this lot with its £55,000 guide price.
0:05:14 > 0:05:18This house I think is inevitable needing updating,
0:05:18 > 0:05:21however it is in a good location.
0:05:21 > 0:05:27The room sizes are pretty good sizes for a family or first-time buyer.
0:05:27 > 0:05:29It's real good.
0:05:29 > 0:05:31Let's talk numbers.
0:05:31 > 0:05:36What sort of returns could this house achieve? First, if sold on.
0:05:36 > 0:05:42Once renovated I certainly would've hoped 80,000 to be a minimum expectation.
0:05:42 > 0:05:46Possibly a little bit more depending on refit and mortar conditions.
0:05:46 > 0:05:49What about the rental market? How much could it earn?
0:05:49 > 0:05:53Rental value I would put £475 per calendar month.
0:05:54 > 0:05:58Well, it's a good area and a good solid property.
0:05:58 > 0:06:03A few internal modifications needed perhaps, but in general, yeah, great one to go for.
0:06:03 > 0:06:05Let's see who agreed when it went under the hammer.
0:06:09 > 0:06:13Now we move to lot number 78, do I have 55 anywhere?
0:06:13 > 0:06:16All right, let's do 45, I won't go below, £45,000.
0:06:16 > 0:06:17Thank you, I've got one bid,
0:06:17 > 0:06:20gentleman in the white shirt £45,000.
0:06:20 > 0:06:2246 on the back.
0:06:22 > 0:06:2647. 48. 49. 50,000, left hand side.
0:06:26 > 0:06:29I'll take 51. I'm on the left hand side at 50.
0:06:29 > 0:06:32You're both out, I'm going to be selling, left hand side at 50,000.
0:06:32 > 0:06:37I'll take one from either of you. I'm selling it once at 50,000.
0:06:37 > 0:06:40I'm selling for the second time n the left hand side at £50,000.
0:06:42 > 0:06:45Sold to gentleman on the left hand side at £50,000.
0:06:45 > 0:06:47After that swift auction,
0:06:47 > 0:06:52the successful £50,000 bid was 5,000 below the guide price.
0:06:52 > 0:06:54It came from buiness-adviser Ross
0:06:54 > 0:06:56and his account-manager sister, Rachel.
0:06:59 > 0:07:02They share a passion for property and have both renovated
0:07:02 > 0:07:06the houses they live in now, but with some financial help
0:07:06 > 0:07:09from their mum and dad, this will be their first investment together.
0:07:14 > 0:07:17Rachel and Ross, lovely to meet you both.
0:07:17 > 0:07:19Nice to meet you, too.
0:07:19 > 0:07:22Congratulations. Tell me why you wanted to buy this place.
0:07:22 > 0:07:26Hopefully it's going to be the start of an investment portfolio
0:07:26 > 0:07:29that we're putting together collectively as a family.
0:07:29 > 0:07:33Oh, great. And does that interest in property go a long way back, or...
0:07:33 > 0:07:35Yeah, absolutely.
0:07:35 > 0:07:38My parents, they've bought a couple of properties in their time
0:07:38 > 0:07:42and my dad built his own house, so there's always been...
0:07:42 > 0:07:45A positive side of that.
0:07:45 > 0:07:46And it's encouraged us
0:07:46 > 0:07:50- to want to move on and do that for ourselves and for our future.- Yeah.
0:07:50 > 0:07:52And how does it work between the two of you?
0:07:52 > 0:07:55You're really taking the lead with it, aren't you?
0:07:55 > 0:07:58Cos it's more of a passion for Ross.
0:07:58 > 0:08:01And I'm just doing all the paperwork and keeping everything,
0:08:01 > 0:08:04you know, behind the scenes, but you're driving it forward.
0:08:04 > 0:08:07Good stuff. And what did you like about the house itself?
0:08:07 > 0:08:11When I walked through here I thought it had a nice feeling,
0:08:11 > 0:08:14really, and I think it's got good potential to,
0:08:14 > 0:08:16once we've done it up, to rent it out.
0:08:16 > 0:08:19And make a profit, hopefully.
0:08:19 > 0:08:20Well, yeah.
0:08:21 > 0:08:24If it does prove profitable this could be
0:08:24 > 0:08:27the start of a property empire for Ross and Rachel.
0:08:27 > 0:08:31It will certainly help to have their family's experience behind them,
0:08:31 > 0:08:35but in this place that pesky wall proved something of a barrier
0:08:35 > 0:08:39when they were trying to organise the mortgage.
0:08:39 > 0:08:41What about any sort of major internal modifications?
0:08:41 > 0:08:43Like, particularly the wall in here,
0:08:43 > 0:08:45it's got this door in it as well, it's all a bit strange.
0:08:45 > 0:08:48Well, that was one of the problems, really,
0:08:48 > 0:08:52as well, with the mortgage company.
0:08:52 > 0:08:54They said that there was a problem with the wall
0:08:54 > 0:08:58and the way that is at the moment.
0:08:58 > 0:09:01And it was very close that we weren't going to get a mortgage on the property.
0:09:01 > 0:09:03Really? Because they said what?
0:09:03 > 0:09:06That structurally it wasn't sound
0:09:06 > 0:09:08and we needed to a structural engineer's report which
0:09:08 > 0:09:11we did pay for and got done but then they wanted more
0:09:11 > 0:09:14and more information and it was getting tighter to the deadline.
0:09:14 > 0:09:17Huh! Cos you've only got 28 days to complete, of course.
0:09:17 > 0:09:20- That's right.- Yeah. - But we got there in the end.- Yes!
0:09:20 > 0:09:23I don't believe you didn't have a few sleepless night.
0:09:23 > 0:09:26- Oh, it was really stressful! - Oh, yes!- Absolutely.
0:09:26 > 0:09:29On Saturday we thought there was a point where we were going to have to
0:09:29 > 0:09:32scrape the money together to pay for it cash, so...
0:09:32 > 0:09:34Have you learned anything from that experience?
0:09:34 > 0:09:40Yes, I have. With it being that the current climate is really,
0:09:40 > 0:09:43really difficult to try and get the mortgage in place.
0:09:43 > 0:09:45If you've just got a mortgage in principle, you know,
0:09:45 > 0:09:51it can drag on and it's a lot harder now to get a mortgage,
0:09:51 > 0:09:54so you've got to be really careful and make sure you have got a plan B.
0:09:54 > 0:09:57Without having to resort to their plan B, Ross
0:09:57 > 0:10:00and Rachel really were in luck there.
0:10:00 > 0:10:04In fact, they did go over the deadline for completion,
0:10:04 > 0:10:08but fortunately for them the vendor did still allowed the sale to go ahead.
0:10:08 > 0:10:12If they hadn't agreed they would have lost their deposit
0:10:12 > 0:10:14and been liable for any fees incurred by the vendor.
0:10:14 > 0:10:17But now that they've made the narrow escape...?
0:10:17 > 0:10:21- Tell me what you're going to do to sort it out? - It needs a complete rewire
0:10:21 > 0:10:25and a new central heating system put in, a new kitchen, new toilet.
0:10:25 > 0:10:29Upstairs bathroom we're going to lower the ceiling in there and put some spots into it.
0:10:29 > 0:10:34Strip the walls and then do it up basically, paint it - cosmetic.
0:10:36 > 0:10:40They also plan to block up that archway to make the kitchen and living room separate again.
0:10:40 > 0:10:44They've set a budget of £10,000 but can call on friends
0:10:44 > 0:10:46and family for some of the trades.
0:10:46 > 0:10:49Ross especially is looking forward to rolling his sleeves up
0:10:49 > 0:10:51and getting stuck in.
0:10:51 > 0:10:54It's just as well as, having secured a tenant,
0:10:54 > 0:10:56time isn't exactly on their side.
0:10:59 > 0:11:04I reckon it'll take round about 4-6 weeks on this one to turn it round.
0:11:04 > 0:11:08It has to cos we've got the tenant wanting to move in
0:11:08 > 0:11:11and we've recently bought another one on Friday...
0:11:11 > 0:11:13- You bought another one?! - Yeah, in the auction.
0:11:13 > 0:11:16- Right.- In a different auction and we've got that let out as well,
0:11:16 > 0:11:19so it's all systems go.
0:11:19 > 0:11:21Yes.
0:11:21 > 0:11:24- Wow!- Yeah, it is.- "In for a penny, in for a pound," as they say.
0:11:24 > 0:11:28- Yeah.- Yeah.- So you bought that before you've even got this one sorted?
0:11:28 > 0:11:30- So what... - HE STAMMERS
0:11:30 > 0:11:33Are you going mad?! You're very enthusiastic!
0:11:33 > 0:11:37The reason why we're having to do that is because of the finances
0:11:37 > 0:11:41and to make it stack up. We need to pay my parents back,
0:11:41 > 0:11:44- so we needed a couple so we can make enough money to pay them back. - Great.
0:11:44 > 0:11:47They'll be happy you're putting the money into property which they know.
0:11:47 > 0:11:52- Yeah.- Absolutely, yeah. - Great. Well, good luck in your new venture. Very exciting.
0:11:52 > 0:11:55A few hairy moments but you're here now.
0:11:55 > 0:11:59- We look forward to seeing how you get on sorting it out. - Thank you very much.
0:11:59 > 0:12:06MUSIC: "Back In Time" by Huey Lewis And The News
0:12:06 > 0:12:10Well, there's a tradition for property in the family
0:12:10 > 0:12:14and brother and sister Ross and Rachel certainly have the passion
0:12:14 > 0:12:18for this, but it was a bit touch and go and lessons to be learned there.
0:12:18 > 0:12:21You have to get your finances sorted out before you
0:12:21 > 0:12:23bid for a property at auction.
0:12:23 > 0:12:26How will they get on? We'll find out later in the show.
0:12:33 > 0:12:35This is Harlesden in Northwest London,
0:12:35 > 0:12:38a vibrant, bustling part of the capital.
0:12:40 > 0:12:44Here is a question, how much would you expect to pay for two
0:12:44 > 0:12:48self-contained flats in Northwest London? Well, the average flat
0:12:48 > 0:12:53in Harlesden costs around £230,000, so you can imagine my delight when
0:12:53 > 0:12:58I heard two flats had gone to auction for the guide price of £230,000.
0:13:01 > 0:13:04Yes, you heard right - that's two flats for the price of one!
0:13:04 > 0:13:06I'm going in.
0:13:09 > 0:13:12The two flats are on the first and ground floor of this end terrace.
0:13:12 > 0:13:15The place is not in bad condition.
0:13:15 > 0:13:19It looks a though there's double glazing and some original features.
0:13:19 > 0:13:21Plus the roof looks fairly new.
0:13:23 > 0:13:26There's a communal hallway and a separate door to
0:13:26 > 0:13:29the upstairs flat and this one on the ground floor.
0:13:29 > 0:13:33It just seems to get narrower and narrower and darker
0:13:33 > 0:13:36and darker the further you come in.
0:13:36 > 0:13:40It's quite oppressive and gloomy and you just get the feeling this
0:13:40 > 0:13:44place needs to be opened up and there needs to be some natural light,
0:13:44 > 0:13:48cos at the moment it's not got very nice feeling.
0:13:49 > 0:13:53Now on a more positive note - what a HUGE room! Wow!
0:13:53 > 0:13:55First things first, I'd like to put a window in there
0:13:55 > 0:13:58so some of the natural light can flow through.
0:13:58 > 0:14:01Get rid of that ugly old fire exit.
0:14:01 > 0:14:05Perhaps, or definitely, take down this yellow, fake wooden cladding,
0:14:05 > 0:14:10and how about putting a doorway in here so as you walk through
0:14:10 > 0:14:13the front door, you can come straight into his room.
0:14:13 > 0:14:15It's a REALLY big space
0:14:15 > 0:14:18and there are a few little redeeming features still.
0:14:18 > 0:14:21You've got some really lovely old cornicing.
0:14:21 > 0:14:25There's even a ceiling rose up there. Not sure about that strip lighting though.
0:14:25 > 0:14:33MUSIC: "Shining Light" by Ash
0:14:35 > 0:14:38It's a really large room in this downstairs flat.
0:14:39 > 0:14:41Yes, it needs major refurbishment
0:14:41 > 0:14:44but the bay-fronted window is a great plus.
0:14:44 > 0:14:46You might want to think about dividing
0:14:46 > 0:14:50the space into a separate living room and bedroom.
0:14:53 > 0:14:56At the back of the ground floor flat the former kitchen has been
0:14:56 > 0:15:00stripped right out and again there a lots of structural issues.
0:15:00 > 0:15:04At least the bathroom still has the fixtures in place,
0:15:04 > 0:15:06but you'd probably want to update them.
0:15:09 > 0:15:11Outside there's a small but serviceable yard.
0:15:11 > 0:15:14Next door there's a social club.
0:15:14 > 0:15:17It's not the greatest view but you could shield it with some
0:15:17 > 0:15:20trellising and plants and it could be nice out here.
0:15:22 > 0:15:25I wonder what the second flat will be like up on the first floor.
0:15:27 > 0:15:30What a lovely surprise. It's like somebody's rushed up here
0:15:30 > 0:15:34and pulled open all the blinds and opened the curtains and let all the light flood through.
0:15:34 > 0:15:37Complete stark contrast to the flat downstairs.
0:15:37 > 0:15:41It really is like a different place altogether.
0:15:41 > 0:15:44Lovely proportions in here, you've got the high ceilings,
0:15:44 > 0:15:47certain amount of period character - these beautiful spindles.
0:15:47 > 0:15:52Nice kitchen that's quite large at the end of the property.
0:15:52 > 0:15:55A bathroom with a little loo, I suppose you could knock the two together.
0:15:55 > 0:15:59It's got a great feel to it. You could imagine with a bit of careful planning
0:15:59 > 0:16:01and a bit of money spending on it,
0:16:01 > 0:16:03this would be a really nice flat to live in.
0:16:03 > 0:16:06Such a contrast to the one downstairs.
0:16:07 > 0:16:09What's been achieved up here shows the potential
0:16:09 > 0:16:12that's on offer on the ground floor.
0:16:12 > 0:16:16But interestingly, the auction catalogue states that indicative plans have been
0:16:16 > 0:16:21drawn up to convert this back into a single four bedroom house.
0:16:21 > 0:16:26This proposal which would still require full consent raises
0:16:26 > 0:16:28a few questions in my mind.
0:16:28 > 0:16:31I just can't see restoring it to a single dwelling as a good
0:16:31 > 0:16:35investment option in the current market here.
0:16:35 > 0:16:38With some doubt as to whether the property was ever officially
0:16:38 > 0:16:40converted into flats in the first place,
0:16:40 > 0:16:43unravelling its planning history COULD get complicated.
0:16:43 > 0:16:49So a good reminder always to do thorough research before bidding.
0:16:51 > 0:16:54What will a local estate agent think of this auction lot,
0:16:54 > 0:16:56guided at 230,000?
0:16:56 > 0:16:58The flats could be great.
0:16:58 > 0:17:00They do need a bit of changing around,
0:17:00 > 0:17:03especially downstairs with the big open-plan room
0:17:03 > 0:17:07but it gives the owners potential to change it in many different ways.
0:17:09 > 0:17:11So , what's the estate agent's view of turning this
0:17:11 > 0:17:14back into a four-bedroomed house?
0:17:14 > 0:17:17I wouldn't recommend turning it back into a four-bedroom house.
0:17:17 > 0:17:21I don't think the road could support it or the area would either.
0:17:21 > 0:17:25Sounds like it would work much better as flats, but does it make
0:17:25 > 0:17:29financial sense to leave the property configured as two flats?
0:17:29 > 0:17:33What could they be worth after a refurbishment?
0:17:33 > 0:17:36You could put each flat on the market for £180,000.
0:17:36 > 0:17:40If they were put on the market as two-bedroom flats, you could probably
0:17:40 > 0:17:44put them on the market as something in the region of £230-£235,000.
0:17:46 > 0:17:51And the rental figures stack up pretty well too.
0:17:51 > 0:17:54The estate agent thinks a one-bed flat could achieve £850
0:17:54 > 0:17:59per calendar month, and a two-bed £1,000 per calendar month.
0:17:59 > 0:18:01How much could the property be worth
0:18:01 > 0:18:03if it was converted back into a four-bed house?
0:18:05 > 0:18:07I would think if it was converted into a four-bed house,
0:18:07 > 0:18:11it'd probably be valued somewhere in the region of £350-360,000.
0:18:15 > 0:18:18I am not so sure about converting these flats
0:18:18 > 0:18:19into a four-bedroom house.
0:18:19 > 0:18:24It sounds great on paper but it doesn't really stack up financially.
0:18:24 > 0:18:28Plus, I don't think there's the demand for it in this area.
0:18:28 > 0:18:31Let's see who fancied this property as we go to the auction.
0:18:37 > 0:18:40Lot 28, mid-terraced house.
0:18:40 > 0:18:41So, 300 anywhere?
0:18:42 > 0:18:45You tell me, where do you want to start?
0:18:45 > 0:18:47Two?!
0:18:47 > 0:18:52OK, here bidding 200,000... 205, yes, standing up.
0:18:52 > 0:18:54No, I take it here, 205, just beat you.
0:18:54 > 0:18:59210. 210. 215. 220.
0:19:00 > 0:19:05220. 225. 230. 235...
0:19:05 > 0:19:07This lot was keenly contested.
0:19:07 > 0:19:12We pick it up with the bidding at 305,000.
0:19:12 > 0:19:14305.
0:19:14 > 0:19:20306. 307. 308. 309.
0:19:22 > 0:19:28310. 311. 312. 312 elsewhere?
0:19:29 > 0:19:31311 down here.
0:19:31 > 0:19:36First time, second time, third and last time if you're all done...
0:19:37 > 0:19:39Sold 311. Well bid, hard luck at the back.
0:19:39 > 0:19:44That successful bid of 311,000 was made by Aggy.
0:19:45 > 0:19:48He bought the property with his business partner James,
0:19:48 > 0:19:51here on the left, who lives in America and wasn't at the auction.
0:19:54 > 0:19:57Together they have big plans for the place, but intriguingly
0:19:57 > 0:20:01they hadn't bought the property with themselves in mind.
0:20:01 > 0:20:04I went to meet them to get to the bottom of this story.
0:20:04 > 0:20:09Guys, congratulations, it's fantastic meeting you today.
0:20:09 > 0:20:13- Aggy, you were there on auction day. James, you weren't.- I wasn't, no.
0:20:13 > 0:20:16- Where were you? - I was 5,000 miles away. - HE LAUGHS
0:20:16 > 0:20:17Aggy, what's the story?
0:20:17 > 0:20:22The story is we have an international investment fund.
0:20:22 > 0:20:25They feel right now that England is a good place to spend some money in,
0:20:25 > 0:20:30primarily London, and because this is my world, property is my world,
0:20:30 > 0:20:33they've entrusted me with a sizeable amount of money to spend here,
0:20:33 > 0:20:37wisely, carefully, and, hopefully, generate them a decent return.
0:20:37 > 0:20:41- So, James, what part are you playing in this?- Several parts.
0:20:41 > 0:20:44First and foremost, I represent the group.
0:20:44 > 0:20:48I'm also an interior designer. I started my career here in London.
0:20:48 > 0:20:51And I went over to the States about 19 years ago.
0:20:51 > 0:20:56- So you have bought this property as part of a company?- Yes, indeed.
0:20:56 > 0:20:59Basically, international investors who are my clients -
0:20:59 > 0:21:00I've designed for them over the years -
0:21:00 > 0:21:02they said, "You know the London market.
0:21:02 > 0:21:07"We trust you to design and build and recreate properties.
0:21:07 > 0:21:08"What do you think we should do?"
0:21:08 > 0:21:12And Aggy and I sat down, we started talking and here we are.
0:21:12 > 0:21:16We are very lucky to have this sum of money to spend on developments,
0:21:16 > 0:21:19because it's not easy getting money from anywhere nowadays.
0:21:19 > 0:21:23And the resources are cash, so we're not reliant on borrowings.
0:21:23 > 0:21:25Something like this is not mortgageable normally,
0:21:25 > 0:21:26so it's purely a cash purchase.
0:21:26 > 0:21:29Lucky for them.
0:21:29 > 0:21:33And it's probably why they managed to pick this up for such a good price -
0:21:33 > 0:21:35the key to making this a success.
0:21:37 > 0:21:41Aggy is very much at the business end of the partnership.
0:21:41 > 0:21:44I've been in property 33 years or so.
0:21:44 > 0:21:46Wow.
0:21:46 > 0:21:50So I started off refurbishing my first house in 1981,
0:21:50 > 0:21:52or whatever it was.
0:21:52 > 0:21:54You have seen how many recessions?
0:21:54 > 0:21:56I've seen three recessions.
0:21:56 > 0:21:59As a result of which, I've had my fair share of pain in property.
0:21:59 > 0:22:03I know this property came with indicative plans to convert
0:22:03 > 0:22:05this back into a four-bed house.
0:22:05 > 0:22:06What do you think of that?
0:22:06 > 0:22:10I think if I were looking at a single residence here,
0:22:10 > 0:22:12it's probably the wrong location.
0:22:12 > 0:22:16I just feel this lends itself to more intensive use
0:22:16 > 0:22:17than a single residence.
0:22:17 > 0:22:21Has this property legally been converted into two flats?
0:22:21 > 0:22:26The way that it works at the moment is it is presently arranged as two flats.
0:22:26 > 0:22:28Clearly, it was converted many, many years ago
0:22:28 > 0:22:33and so if you can sway them it's been used like that
0:22:33 > 0:22:36for several years, they will grant you this existing use.
0:22:36 > 0:22:41But, as a back-up plan, we are going for formal planning,
0:22:41 > 0:22:45expecting to achieve that anyway, but in anticipation
0:22:45 > 0:22:47if we satisfy them we've got this existing-use consent,
0:22:47 > 0:22:50then we'll just withdraw our planning application
0:22:50 > 0:22:51and get on with the development.
0:22:51 > 0:22:54So, James, how are you going to make these flats
0:22:54 > 0:22:57the best they can possibly be?
0:22:57 > 0:22:59I think, first and foremost, when I did walk in,
0:22:59 > 0:23:03the house on the outside doesn't present itself very well.
0:23:03 > 0:23:05But, as Aggy said, wait until you get inside.
0:23:05 > 0:23:07When you get inside, there's great potential
0:23:07 > 0:23:12in the sense of space that allows us to rearrange some of the rooms.
0:23:12 > 0:23:15I'm going to add some touches to maybe bring it up a few notches.
0:23:15 > 0:23:17Currently, they are one-bed flats,
0:23:17 > 0:23:20but are you planning to reconfigure in any way?
0:23:20 > 0:23:25The volumetric layout lends itself beautifully to converting each floor
0:23:25 > 0:23:27into two-bedroom flats.
0:23:27 > 0:23:29So who do I ask about the budget?
0:23:30 > 0:23:32- Don't ask me! - THEY LAUGH
0:23:32 > 0:23:36- Aggy?- It should be round about 25,000 a unit.
0:23:36 > 0:23:39So £25,000 for this flat and 25,000 for that.
0:23:39 > 0:23:41I reckon. If James wants to spend more money,
0:23:41 > 0:23:44because he really wants to give you a good show, it's down to him.
0:23:44 > 0:23:49Guys, I'm so excited to see the outcome. I'm sure you going to do an amazing job.
0:23:52 > 0:23:55Aggy has survived three recessions,
0:23:55 > 0:23:59but he's the first to admit it's not always been easy for him.
0:23:59 > 0:24:01Will this property pose any problems?
0:24:01 > 0:24:04Something tells me Aggy and James will get on just fine here.
0:24:04 > 0:24:09But, as we know well, houses can throw up also issues.
0:24:09 > 0:24:11Will they need to obtain planning permission,
0:24:11 > 0:24:15or will they be able to start work straight away?
0:24:15 > 0:24:18You can find out how this project pans out later in the programme.
0:24:19 > 0:24:21Still to come, in Salford it's not a small room,
0:24:21 > 0:24:25'it's not even a box room, so just what is it?'
0:24:25 > 0:24:28It's just a bit daft.
0:24:29 > 0:24:33In Harlesden, Aggy was going through the alphabet of property developing.
0:24:33 > 0:24:38Plan A is what you would prefer, plan B is a close second.
0:24:38 > 0:24:39But you need "C" and "D".
0:24:40 > 0:24:44But first, in Jarrow, did Ross and Rachel face any problems
0:24:44 > 0:24:45on this project?
0:24:45 > 0:24:49I found the biggest challenge was not to splash the cash.
0:24:54 > 0:24:58We're returning now to the historic town of Jarrow in the North East.
0:24:58 > 0:25:02Here, property-developing brother and sister Ross and Rachel
0:25:02 > 0:25:05purchased this two-bed semi-detached property
0:25:05 > 0:25:08with stunning views for £54,000 at auction.
0:25:08 > 0:25:10# Right on
0:25:10 > 0:25:12# Brothers and sisters
0:25:12 > 0:25:14# Right on... #
0:25:14 > 0:25:19They were not going to waste any time getting stuck into the work.
0:25:19 > 0:25:23I reckon it'll take round about four to six weeks to turn around.
0:25:23 > 0:25:27It has to, because we've got the tenant wanting to move in.
0:25:27 > 0:25:30And we bought another one on Friday.
0:25:30 > 0:25:32- You bought another one? - Yeah, in the auction.
0:25:32 > 0:25:34- Right.- In a different auction.
0:25:34 > 0:25:38And we've got that let out, as well, so, it's all systems go.
0:25:38 > 0:25:41Well, they certainly weren't afraid of a challenge,
0:25:41 > 0:25:43but had they bitten off more than they can chew?
0:25:43 > 0:25:47We've come to see them six weeks to the day after we first met
0:25:47 > 0:25:51to see if all systems did go or if they ground to a halt.
0:26:05 > 0:26:08I'm impressed. The house has certainly enjoyed an overhaul.
0:26:08 > 0:26:11Gone are the dodgy bathroom, green living room
0:26:11 > 0:26:13and awkward archway.
0:26:13 > 0:26:16All have been replaced with a much more modern and neutral decor,
0:26:16 > 0:26:20downstairs as well as up.
0:26:20 > 0:26:24OK, when we first came into this room all the walls were stripped
0:26:24 > 0:26:26and then we painted it. It's a nice, airy room.
0:26:26 > 0:26:31Light, big size, there's a nice cupboard there for storage.
0:26:31 > 0:26:35We've got a lovely view out of the window, so overall, we're quite happy with this room.
0:26:35 > 0:26:38The oddest thing about this property
0:26:38 > 0:26:42was definitely the archway-door combo into the kitchen.
0:26:42 > 0:26:45But that's now consigned to the past.
0:26:46 > 0:26:49OK, so here we are in the kitchen.
0:26:49 > 0:26:52What I've done in here is we've blocked up
0:26:52 > 0:26:56the wall from the sitting room into the dining-room area.
0:26:56 > 0:27:00We've ripped out all of the old kitchen and put in a new one,
0:27:00 > 0:27:04which I think is really, really good. It didn't cost the Earth, to be honest with you.
0:27:04 > 0:27:08We sourced the stuff independently. We got really good deals on it.
0:27:08 > 0:27:11To top it off, matching the kick boards
0:27:11 > 0:27:15in with the worktop and then popping down the worktop to the floor,
0:27:15 > 0:27:21I think gives it a modern twist and I'm really happy with the results.
0:27:21 > 0:27:24And so he should be.
0:27:24 > 0:27:27He and Rachel have achieved all this within their six-week timescale,
0:27:27 > 0:27:29despite both having full-time jobs.
0:27:29 > 0:27:32How did they do it?
0:27:32 > 0:27:36It has been challenging, because Ross has got his own business,
0:27:36 > 0:27:38as well as working full-time.
0:27:38 > 0:27:41But I think it's using the free time effectively,
0:27:41 > 0:27:45like coming at night-time, working as a team, the support of friends and family.
0:27:45 > 0:27:49Without them, this wouldn't have been done within the timescale.
0:27:49 > 0:27:55It all sounds rosy family-wise. Well, except for one small detail.
0:27:55 > 0:27:57Well, we're not actually speaking...
0:27:57 > 0:28:00- We weren't speaking, because... - For a short time.
0:28:00 > 0:28:03Last night, we had a bit of an argument about the tidying up
0:28:03 > 0:28:06before, er, obviously before you guys came,
0:28:06 > 0:28:11but it was a quick make up this morning before you got here.
0:28:11 > 0:28:14- So all's well.- Yes.
0:28:14 > 0:28:15# Trying to keep
0:28:15 > 0:28:17# The family together... #
0:28:19 > 0:28:20And thank goodness,
0:28:20 > 0:28:24as Ross and Rachel are about to start on the next joint venture.
0:28:24 > 0:28:25They purchased two properties
0:28:25 > 0:28:28in order to pay their parents back as quickly as possible.
0:28:28 > 0:28:32They had set a £10,000 budget for the work on this one,
0:28:32 > 0:28:35and sticking to it turned out to be tricky.
0:28:35 > 0:28:39I found the biggest challenge was not to splash the cash.
0:28:39 > 0:28:42I think had I been moving in, I would've spend more money
0:28:42 > 0:28:45but you've had to check us a couple of times,
0:28:45 > 0:28:50because I would've spent the budget weeks ago!
0:28:50 > 0:28:53Yeah, just on silly things, like...
0:28:53 > 0:28:55I think we've had to rein it in
0:28:55 > 0:28:57and make sure we haven't spent a fortune.
0:28:59 > 0:29:00And rein it in they did.
0:29:00 > 0:29:04Including expenses, the renovation cost them £8,000,
0:29:04 > 0:29:08that's £2,000 under budget.
0:29:08 > 0:29:11That takes their total outlay, including the purchase price,
0:29:11 > 0:29:14to 58,000. So was it money well spent?
0:29:17 > 0:29:21We invited two local estate agents to cast their expert eyes
0:29:21 > 0:29:25over Ross and Rachel's handiwork to see if they approve.
0:29:26 > 0:29:28I think they've done a very good job.
0:29:28 > 0:29:31It's very plain and maybe not everybody likes plain,
0:29:31 > 0:29:34but it's that blank canvas that anybody moving into it
0:29:34 > 0:29:35can obviously put their stamp on it.
0:29:35 > 0:29:38I like the finish of the property and I like the neutral decor,
0:29:38 > 0:29:41particularly of the kitchen and bathroom.
0:29:41 > 0:29:42They are of a high standard.
0:29:42 > 0:29:45It's small, but perfectly formed. It has a utility room,
0:29:45 > 0:29:49it has a dining area, it has everything that you would hope, but on a smaller scale.
0:29:49 > 0:29:53So do big things come in small packages?
0:29:53 > 0:29:55Let's get down to business.
0:29:55 > 0:29:57The estate agents reckon this property could make
0:29:57 > 0:30:01between £85,000 and £90,000 on the resale market.
0:30:01 > 0:30:06Resulting in a healthy gross profit of between £27,000 and £32,000 before expenses.
0:30:06 > 0:30:11But the siblings have secured a long-term tenant for rental,
0:30:11 > 0:30:14so what should they be charging?
0:30:14 > 0:30:18I would expect to achieve £495 per calendar month.
0:30:18 > 0:30:20£495 per calendar month.
0:30:20 > 0:30:22- Brilliant.- That's really good.
0:30:22 > 0:30:25We have already let the property out
0:30:25 > 0:30:28and we have it for a little bit lower than that
0:30:28 > 0:30:31with the aim of them taking a long-term rent.
0:30:31 > 0:30:34- No, I'm really happy. - I'm happy with that, yeah.
0:30:34 > 0:30:38In fact, they've done a deal at £475 per month
0:30:38 > 0:30:41in order to secure a long-term tenancy
0:30:41 > 0:30:43for their long-term investment.
0:30:43 > 0:30:46Not only that, but they are achieving
0:30:46 > 0:30:49a very impressive rental yield of nearly 10%.
0:30:49 > 0:30:54So fantastic figures, but has it been as good an experience?
0:30:54 > 0:30:55BOTH: Yes.
0:30:55 > 0:30:58It's been challenging, we've had our ups and downs,
0:30:58 > 0:31:01but we love each other. And onwards and upwards!
0:31:01 > 0:31:02THEY LAUGH
0:31:02 > 0:31:05# Brothers and sisters
0:31:05 > 0:31:07# Brothers and sisters... #
0:31:13 > 0:31:17This is Salford Quays, in the city of Salford,
0:31:17 > 0:31:20the largest broadcasting hub outside London.
0:31:20 > 0:31:24It's an area benefiting from large-scale redevelopment,
0:31:24 > 0:31:26so with a potential increase in the workforce
0:31:26 > 0:31:29and money being ploughed into the area, Salford could prove
0:31:29 > 0:31:33a happy hunting ground for hungry property investors.
0:31:34 > 0:31:37I'm just ten minutes from the Quays
0:31:37 > 0:31:42in an area of these traditional Victorian back-to-back terraced houses.
0:31:42 > 0:31:46It's houses like this that became almost the role model
0:31:46 > 0:31:48for shows like Coronation Street
0:31:48 > 0:31:50and this is the one I'm here to see, it's a big terrace.
0:31:50 > 0:31:53Two bedrooms and a guide price of 50,000 quid.
0:31:53 > 0:31:54Let's find out how much it will take
0:31:54 > 0:31:57to bring this place into the 21st century.
0:31:57 > 0:32:00You're going to need a new door for a start!
0:32:00 > 0:32:05Let's see what else. Well, a few hints of original features.
0:32:05 > 0:32:07A few nice mouldings.
0:32:07 > 0:32:12Entrance hall there, stairs up to your bedrooms and through to your lounge.
0:32:12 > 0:32:15It's a very traditional layout for this kind of property.
0:32:15 > 0:32:17High ceilings, which is good news.
0:32:17 > 0:32:21- Obviously some work in the process of being completed. - HE LAUGHS
0:32:21 > 0:32:25They'll have to work on the central-heating system.
0:32:25 > 0:32:28Through the archway into the rear living room area.
0:32:28 > 0:32:30Again, it's not bad at all,
0:32:30 > 0:32:35although whenever I see bits of half completed work,
0:32:35 > 0:32:39I wonder what was the underlying problem and has that been sorted out?
0:32:39 > 0:32:43You've got a half-decent... I was going to say half-decent fireplace.
0:32:43 > 0:32:47There you go. Not much demolition required there.
0:32:47 > 0:32:51I'd like to see something more spectacular in place of that.
0:32:51 > 0:32:54It wouldn't cost too much to at least take it off.
0:32:54 > 0:32:57Through to you what I think is possibly
0:32:57 > 0:33:01the most disappointing part of the downstairs, the kitchen -
0:33:01 > 0:33:04tacked on the back here, in a right old state.
0:33:04 > 0:33:08It just feels too small for the property.
0:33:08 > 0:33:12In terms of how much it is going to cost to bring it up to date,
0:33:12 > 0:33:15um, the cost is going up.
0:33:22 > 0:33:25With this dated kitchen and half-completed heating system,
0:33:25 > 0:33:29it looks like some DIY love needs to be spread around here.
0:33:29 > 0:33:34Oh, and those polystyrene tiles will have to go as well,
0:33:34 > 0:33:36since they pose a fire risk.
0:33:36 > 0:33:39In general, there don't appear to be any structural issues
0:33:39 > 0:33:44and, from the outside, these turn-of-the-century houses do tend to be fairly solid.
0:33:44 > 0:33:48Upstairs, there are two large bedrooms - a double at the front and a smaller one at the back.
0:33:48 > 0:33:51'Then there is something really odd.'
0:33:51 > 0:33:55So, as well as two half-decent-sized double bedrooms,
0:33:55 > 0:33:57you've got this bathroom.
0:33:57 > 0:33:59OK, all good so far.
0:33:59 > 0:34:01And then, you discover this room.
0:34:01 > 0:34:02My guess is this was built
0:34:02 > 0:34:05whenever they built the extension on the back.
0:34:05 > 0:34:08But what was it built for?
0:34:08 > 0:34:11It's too small to be a bedroom, obviously,
0:34:11 > 0:34:14it's not practical to be a study. Maybe it's just a storeroom.
0:34:14 > 0:34:16Whatever, it's not very good
0:34:16 > 0:34:19and I would obviously take out this wall
0:34:19 > 0:34:22to create a nice-sized family bathroom.
0:34:22 > 0:34:24Because, as it is, it's just a bit daft.
0:34:24 > 0:34:28'And talking of small spaces, but definitely manageable,
0:34:28 > 0:34:31'take a peek out of the kitchen window and there is a cute backyard,
0:34:31 > 0:34:33'which we couldn't get access to.'
0:34:35 > 0:34:38What's the best way forward for this place?
0:34:38 > 0:34:42It's a strong rental area, so if it's the rental option you're after,
0:34:42 > 0:34:45it's best to keep your renovation costs low.
0:34:47 > 0:34:51Remembering it was guided at £50,000,
0:34:51 > 0:34:54we asked a local estate agent for his thoughts
0:34:54 > 0:34:57on this two-bedroom terraced house.
0:34:57 > 0:34:59This house needs full modernisation -
0:34:59 > 0:35:04new bathroom, new kitchen, possibly the windows and, of course,
0:35:04 > 0:35:08we've got a problem with the polystyrene tiles on the ceiling.
0:35:08 > 0:35:10But nothing that can't be solved.
0:35:11 > 0:35:14How do the returns sound?
0:35:14 > 0:35:16First, if sold on.
0:35:16 > 0:35:19I'd put this property on the market for £75,000.
0:35:19 > 0:35:22And how do rental figures stack up?
0:35:23 > 0:35:27I'd value this property for rent about £475 per calendar month.
0:35:29 > 0:35:33Well, not too much effort needed to turn this place
0:35:33 > 0:35:36into a really nice home or rental opportunity.
0:35:36 > 0:35:40Let's see who fancied it when it went under the hammer.
0:35:43 > 0:35:47Lot 37. This one worth 45,000 of anybody's money.
0:35:47 > 0:35:49At £45,000?
0:35:49 > 0:35:52£45,000. At 45,000. 46.
0:35:52 > 0:35:55At 46,000. 46, 47.
0:35:55 > 0:35:58At 47. Do I see 48?
0:35:58 > 0:36:00At 48. 49. At 49,000.
0:36:00 > 0:36:02Round it up to 50?
0:36:02 > 0:36:05At 50,000, are we out? £50,000, are we all done?
0:36:05 > 0:36:0951. At 51,000. 52.
0:36:09 > 0:36:1252. 53? 53,000.
0:36:12 > 0:36:15At 53,000 for the first time.
0:36:15 > 0:36:1753,000 for the second time.
0:36:17 > 0:36:20Third and final time at £53,000.
0:36:20 > 0:36:22It's yours.
0:36:22 > 0:36:26That successful bid of 53,000 was made by John.
0:36:29 > 0:36:30He's an accountant
0:36:30 > 0:36:34and lives in Hertfordshire with his fiancee Catherine, a nursery nurse.
0:36:34 > 0:36:37They originally hail from this part of the country
0:36:37 > 0:36:40and have headed back north to make their first property investment.
0:36:40 > 0:36:43'I met up with them to find out more.'
0:36:43 > 0:36:46- John, Catherine, great to meet you. - Hi.- Congratulations.
0:36:46 > 0:36:48Tell me why you wanted to buy this place.
0:36:48 > 0:36:53We'd been looking around for a while at properties to buy,
0:36:53 > 0:36:56because this is such a regeneration area, and it came up in the auction.
0:36:56 > 0:37:00We thought we'd have a go and see if it came up at the right price.
0:37:00 > 0:37:02- And it obviously did. - It did, yeah.
0:37:02 > 0:37:05- We got it cheaper than we thought it was going to be.- Great.
0:37:05 > 0:37:07What did you think it might go for?
0:37:07 > 0:37:10We had a look and the most we will be willing to pay was 60.
0:37:10 > 0:37:13We thought it would go from mid-50s, 60.
0:37:13 > 0:37:17In the auction, I even bid twice, because I wasn't sure.
0:37:17 > 0:37:19I'm putting my hand up
0:37:19 > 0:37:22and the auctioneer's, "Yes, that's you, yes!"
0:37:22 > 0:37:24Me!
0:37:24 > 0:37:27So we probably paid 1,000 more than we should have done!
0:37:27 > 0:37:32- You weren't particularly playing it cool?- No.- Again!
0:37:32 > 0:37:34Yeah, basically.
0:37:34 > 0:37:35So why were you so enthusiastic to buy it?
0:37:35 > 0:37:39Erm, generally with these terraced houses, there's properly nothing too bad
0:37:39 > 0:37:43in terms of structure - if one of them is going to go, the whole row is going to go.
0:37:43 > 0:37:48- Right. - We knew... This is our first property in terms of investment,
0:37:48 > 0:37:52so we didn't want anything that was too much work and effort.
0:37:52 > 0:37:56Because between ourselves and friends and family, we'll be doing the work ourselves.
0:37:56 > 0:38:00Catherine's dad viewed it and said there didn't seem to be a massive amount of work to do.
0:38:00 > 0:38:02So that's why we went for it.
0:38:02 > 0:38:04Is your dad a builder ?
0:38:04 > 0:38:08No, but he was in double-glazing and stuff.
0:38:08 > 0:38:10He's a bit of a jack of all trades,
0:38:10 > 0:38:14which is good, so he gave us an idea of how much it would be cost.
0:38:14 > 0:38:18In fact, this property is an investment by both sets of parents
0:38:18 > 0:38:22to help the couple start up a future pension plan.
0:38:22 > 0:38:25But before we go into their plans for this house,
0:38:25 > 0:38:26I wanted to know more about them.
0:38:26 > 0:38:29We've been together about six years.
0:38:29 > 0:38:31We moved together down south about three years ago
0:38:31 > 0:38:35and bought our first property to live in.
0:38:35 > 0:38:39- We're getting married next year. - Congratulations.
0:38:39 > 0:38:41So between sorting the mortgage out for this
0:38:41 > 0:38:43and arranging a wedding, we've been quite busy!
0:38:43 > 0:38:47- And full-time jobs. - Yeah, and working, yeah.
0:38:47 > 0:38:49Are you getting married down south?
0:38:49 > 0:38:53- Up here, we're getting married at Chester Zoo.- Chester Zoo!
0:38:53 > 0:38:56- In the big manor house. - Not in a cage?
0:38:56 > 0:38:58- THEY LAUGH - With the lions - take a risk!
0:38:59 > 0:39:01# We're going to the zoo, zoo, zoo
0:39:01 > 0:39:04# How about you, you, you?
0:39:04 > 0:39:07# You can come, too, too, too
0:39:07 > 0:39:09# Going to the zoo, zoo, zoo. #
0:39:09 > 0:39:10What a great idea, but before that
0:39:10 > 0:39:12there's fun and games to be had here.
0:39:12 > 0:39:16The couple plan to install a new kitchen and bathroom,
0:39:16 > 0:39:19new flooring and get that central-heating system sorted out.
0:39:19 > 0:39:23Then they hope to let the place out in two months' time.
0:39:23 > 0:39:26So what sort of budget do they reckon will do the job here?
0:39:29 > 0:39:31About five, 5½,
0:39:31 > 0:39:34assuming we don't find any nasties anywhere, or major issues.
0:39:34 > 0:39:38OK. That's tight, isn't it?
0:39:38 > 0:39:43It is tight, but most the work will be done by us.
0:39:43 > 0:39:47Doing a lot of the work ourselves, and by friends and family, will keep the labour costs down.
0:39:47 > 0:39:51So with a bit of luck, we'll be around the £5,000 mark,
0:39:51 > 0:39:54- but I wouldn't want to guarantee it just yet. - SHE LAUGHS
0:39:54 > 0:39:58'Doing the renovation for around five grand might prove tight,'
0:39:58 > 0:40:01but as the couple are based down south,
0:40:01 > 0:40:04they'll leave it to friends and family to do most of the refurbishment.
0:40:04 > 0:40:08That's a good decision, because DIY isn't a strong point.
0:40:09 > 0:40:13Personally I'm restricted to painting.
0:40:13 > 0:40:16- I'm not going to have major part. - No, we're not very handy.
0:40:16 > 0:40:18Neither of you?
0:40:18 > 0:40:19I can't put a shelf up.
0:40:19 > 0:40:22- No, we live in a new-build so... - For that reason.
0:40:22 > 0:40:24Oh, wow.
0:40:24 > 0:40:27So you really are DIY disasters, both of you?
0:40:27 > 0:40:31- Yes.- We are completely.- I put a shelf up. The only bit of DIY I've ever done.
0:40:31 > 0:40:33I put a shelf up in our flat, measured it,
0:40:33 > 0:40:37drilled the hole, I didn't realise the bracket drops like that
0:40:37 > 0:40:38so there was a gap.
0:40:38 > 0:40:42At the minute, you've got the bracket and a pencil shoved in
0:40:42 > 0:40:45and the shelf is sitting on a pencil, sitting on the bracket.
0:40:45 > 0:40:47That's why our dads will be doing the work.
0:40:47 > 0:40:50If you come back and it's fitted together with pencils
0:40:50 > 0:40:53and other bits of stationery, you'll know I've done the work.
0:40:53 > 0:40:56That's brilliant. Best stay down in Hertfordshire, I think.
0:40:56 > 0:40:59- Yeah!- That's pretty much the idea.
0:40:59 > 0:41:02- I think they'll pay us to stay away! - Yeah.
0:41:02 > 0:41:05Well, congratulations. Work to be done. Not by you.
0:41:05 > 0:41:07BOTH: No! LAUGHTER
0:41:07 > 0:41:11- We look forward to seeing how you get on.- BOTH: Thank you.
0:41:11 > 0:41:15Well, I think John and Catherine and their respective families
0:41:15 > 0:41:17have done well with this place.
0:41:17 > 0:41:21Work to be done, but definitely not by them.
0:41:21 > 0:41:25You can find out how they get on later in the show.
0:41:27 > 0:41:32Time waits for no man and the weeks and months have passed.
0:41:32 > 0:41:36So have our properties been subject to a real DIY effort?
0:41:36 > 0:41:39Or have they remained exactly the same?
0:41:39 > 0:41:42The moment of truth. Let's go back and find out.
0:41:44 > 0:41:48'Earlier in the programme, we were in Harlesden, north-west London,'
0:41:48 > 0:41:52where this terraced property, divided into two self-contained flats
0:41:52 > 0:41:54was bought for 311,000 by Aggy.
0:41:54 > 0:41:57He's a professional property developer
0:41:57 > 0:42:01for a group of American investors represented by James,
0:42:01 > 0:42:06who was a designer and had worked with Aggy before.
0:42:06 > 0:42:09Although there were questions over consents for original flat conversion,
0:42:09 > 0:42:15Aggy was confident there would be no problem getting agreement from the local planners.
0:42:15 > 0:42:18If you can sway them it has been used like that
0:42:18 > 0:42:21for several years, they will grant you this existing use.
0:42:21 > 0:42:25But, as a back-up plan, we are going for formal planning,
0:42:25 > 0:42:27expecting to achieve that anyway.
0:42:27 > 0:42:30James, how are you going to make these flats
0:42:30 > 0:42:33the best they can possibly be?
0:42:33 > 0:42:36The house on the outside does not present itself very well.
0:42:36 > 0:42:38But as Aggy said, wait will you get inside.
0:42:38 > 0:42:41And when you get inside, there's great potential.
0:42:43 > 0:42:48Well, nine months had passed when we met up again with Aggy and James.
0:42:52 > 0:42:55The back of the house has been totally transformed.
0:42:55 > 0:42:57There are new windows, roof and a new door
0:42:57 > 0:43:02where the downstairs bathroom was now leads into the former kitchen.
0:43:06 > 0:43:11That has been extended right to the back of the property.
0:43:13 > 0:43:15I don't know if you remember,
0:43:15 > 0:43:19but this was really quite a, I would say, derelict room.
0:43:19 > 0:43:22It was quite awful. Very dingy.
0:43:22 > 0:43:26And what we wanted to do here is achieve a really nice fresh look
0:43:26 > 0:43:28and make it very open.
0:43:28 > 0:43:33To the back end of this room was a very old, dingy bathroom.
0:43:33 > 0:43:35What we did with that was open it up completely.
0:43:35 > 0:43:40The amount of light coming in is what we were trying to achieve and that's happened.
0:43:40 > 0:43:44We've put the cabinets on this side, which left this side nice and open.
0:43:44 > 0:43:48Not only does it make it look nice and large, but it's practical.
0:43:48 > 0:43:51It's come together incredibly. I'm really happy with this room.
0:43:53 > 0:43:56At the front of the ground floor, that massive room has been divided
0:43:56 > 0:44:01into two, with the new doorway from the hall and a bay window.
0:44:03 > 0:44:06In the newly created smaller rear room,
0:44:06 > 0:44:10the fire exit is now a door to the patio garden
0:44:10 > 0:44:14and, in a new location, a bathroom has been installed.
0:44:16 > 0:44:20But, actually, this is no longer the ground-floor flat
0:44:20 > 0:44:24because, as Aggy explains, things didn't go as planned.
0:44:24 > 0:44:27When we did our due diligence on the planning side,
0:44:27 > 0:44:29there was no history to suggest
0:44:29 > 0:44:32there was anything other than two flats,
0:44:32 > 0:44:34created many, many decades ago.
0:44:34 > 0:44:39So we expected to just get regularisation of use.
0:44:39 > 0:44:41But we were declined.
0:44:41 > 0:44:45They felt there was a greater need for a single family dwelling.
0:44:45 > 0:44:49Initially, we resisted. We thought about whether we should go to appeal.
0:44:49 > 0:44:53Ultimately, we thought, "Let's just change our complete thinking,"
0:44:53 > 0:44:57and, in some ways, they've done as a favour.
0:44:57 > 0:45:00It's good that Aggy is being so positive about this,
0:45:00 > 0:45:03even though it wasn't the news they originally hoped for.
0:45:03 > 0:45:06So the ground floor rooms now form
0:45:06 > 0:45:10part of an impressive five-bedroom, two-bathroom house.
0:45:10 > 0:45:14Up on the first floor is the original master bedroom.
0:45:14 > 0:45:17Along the landing is bedroom two.
0:45:20 > 0:45:23The separate loo has been opened up into the bathroom.
0:45:27 > 0:45:31The former kitchen at the rear is now a new bedroom.
0:45:31 > 0:45:36So what impact did the layout change have on the design plans
0:45:36 > 0:45:38James had made for his American client?
0:45:38 > 0:45:42Most of the challenge I had to face from a design point of view
0:45:42 > 0:45:46was how to make it a cohesive house, as a one, stand-alone house.
0:45:46 > 0:45:48Obviously you have to, being an investment,
0:45:48 > 0:45:51and thinking about the investors,
0:45:51 > 0:45:54it was important to make a design that was palatable
0:45:54 > 0:45:56for a wide range of people.
0:45:56 > 0:46:00To add extra accommodation, James and Aggy started to erect
0:46:00 > 0:46:05a more spacious four-sided mansard extension in the loft.
0:46:05 > 0:46:09They submitted paperwork for the consent under permitted development, but it was refused.
0:46:09 > 0:46:13In the end, the solution was just to do a loft conversion,
0:46:13 > 0:46:16which was accepted by the planners.
0:46:16 > 0:46:19It sounds like all the to-ing and fro-ing has caused some major headaches.
0:46:19 > 0:46:23So with over 30 years' property experience, how has Aggy managed?
0:46:23 > 0:46:25You need to be flexible and elastic.
0:46:25 > 0:46:28Ultimately plan A is what you would prefer,
0:46:28 > 0:46:31plan B is a close second, but you need C and D,
0:46:31 > 0:46:35where you come up with the best viable alternative that's going to work you.
0:46:35 > 0:46:37And I think we did that.
0:46:39 > 0:46:42Originally, Aggy had set a budget of £25,000 for each flat,
0:46:42 > 0:46:47so how much is he had to spend converting the whole house?
0:46:47 > 0:46:5225 grand a unit would have been appropriate and probably doable,
0:46:52 > 0:46:54although because we threw away the roof -
0:46:54 > 0:46:57- a couple of times, actually, with the mansard! - HE LAUGHS
0:46:57 > 0:47:01So we're quite content that we spent around 100 or so
0:47:01 > 0:47:04bringing this up to an appropriate standard.
0:47:06 > 0:47:10Along with the 311,000 he spent at auction,
0:47:10 > 0:47:11that takes the total to 411,000.
0:47:11 > 0:47:16So what's the plan now for the house?
0:47:16 > 0:47:17We are going to rent it.
0:47:17 > 0:47:20We've bought it, we fixed it, we are going to keep it,
0:47:20 > 0:47:23then the plan is to do more with the resources we have available.
0:47:25 > 0:47:29Time to hear what two local estate agents think of the place.
0:47:29 > 0:47:31They've done a nice job of the refurb,
0:47:31 > 0:47:33a nice finish throughout,
0:47:33 > 0:47:36utilised the space well. It looks good.
0:47:36 > 0:47:38Don't think it would be an issue to sell or rent.
0:47:38 > 0:47:40The layout of the house is reasonably good.
0:47:40 > 0:47:42It's fairly traditional.
0:47:42 > 0:47:46There is a very small reception room, which I can't see
0:47:46 > 0:47:49totally what they can use it for, but they've made the kitchen
0:47:49 > 0:47:53a nice big room and the bedrooms are all of a reasonable size.
0:47:53 > 0:47:54I like the way the loft's been done.
0:47:54 > 0:47:58They've utilised the space well. All the bedroom sizes are good.
0:47:58 > 0:48:03The kitchen is good, a good size, offers space for a dining table that looks out into the garden.
0:48:03 > 0:48:08With £411,000 invested here, what valuation could property achieved?
0:48:10 > 0:48:11If the property came on the market for sale,
0:48:11 > 0:48:16I think you would be looking somewhere in the region of 400,000,
0:48:16 > 0:48:20but we'd probably ask as high as 410 to 415.
0:48:20 > 0:48:24In the current sales market, I'd expect achieve around £450,000.
0:48:24 > 0:48:31£450,000 would generate £39,000 gross profit before expenses,
0:48:31 > 0:48:37But 400 grand would produce a loss of 11,000.
0:48:37 > 0:48:39450 is hopefully more accurate,
0:48:39 > 0:48:42but there is only one time you know what to going to get,
0:48:42 > 0:48:43when you actually sell it.
0:48:43 > 0:48:46It starts with a four and that's quite nice.
0:48:46 > 0:48:47And that's what we want to know!
0:48:49 > 0:48:52How much rental income could be earned here?
0:48:52 > 0:48:54If the property came on the market to rent,
0:48:54 > 0:48:58I think it would achieve in the region of £2,000 per calendar month.
0:48:58 > 0:49:00In the current market, I'd expect to achieve
0:49:00 > 0:49:02somewhere in the region of £2,000 per calendar month.
0:49:02 > 0:49:05Again, hopefully 2,100, something like that
0:49:05 > 0:49:06but 2,000 is good. We'll take it.
0:49:06 > 0:49:09They'll be getting a yield of around 6%, too,
0:49:09 > 0:49:12so there's been a complete change of plan
0:49:12 > 0:49:16as their proposed two-flat development was refused.
0:49:16 > 0:49:18But they can see the positives.
0:49:18 > 0:49:21I'm pleased we're hanging on to it rather than put it on the market -
0:49:21 > 0:49:25are we going to sell it, aren't we going to sell it? Will we get the right price?
0:49:25 > 0:49:27We'll benefit, hopefully, in the fullness of time,
0:49:27 > 0:49:29whether it's five, ten, 15 years,
0:49:29 > 0:49:31doesn't make much difference right now.
0:49:31 > 0:49:34Will they be working together again?
0:49:34 > 0:49:37- What do you think? - What do you think?
0:49:37 > 0:49:38- I reckon so. - I reckon so.
0:49:38 > 0:49:41I think we're blood brothers after this one!
0:49:46 > 0:49:50We head back to the city of Salford, where soon-to-be-wed couple
0:49:50 > 0:49:56Catherine and John bought this two-bed terraced house for 53,000.
0:49:56 > 0:50:01They had a good idea to renovate the house as part of a pension plan.
0:50:01 > 0:50:05'The problem was, when it came to DIY, they didn't have any idea at all.'
0:50:05 > 0:50:08You really are DIY disasters?
0:50:08 > 0:50:10- Yes.- Yes, we are completely.
0:50:10 > 0:50:13I put a shelf up, the only bit of DIY I've done.
0:50:13 > 0:50:16I put a shelf up in our flat, measured it up, drilled the hole.
0:50:16 > 0:50:19I didn't realise the bracket drops like that, so then there was a gap.
0:50:19 > 0:50:23At the minute, you've got a bracket and a pencil shoved in
0:50:23 > 0:50:26and the shelf is sitting on a pencil, which is sitting on a bracket.
0:50:26 > 0:50:28- HE LAUGHS - Uh-oh!
0:50:28 > 0:50:31Fortunately for the house, the couple live in Hertfordshire
0:50:31 > 0:50:35and are leaving it to their families who live in the area to do the renovation.
0:50:35 > 0:50:36Wise move there.
0:50:36 > 0:50:38Just over three months later,
0:50:38 > 0:50:40we're back to see how Catherine and John,
0:50:40 > 0:50:43or rather their family, have got on.
0:50:51 > 0:50:54Well, this is much better.
0:50:54 > 0:50:56No signs of pencils anywhere,
0:50:56 > 0:50:59just two light, airy reception rooms.
0:51:02 > 0:51:04At the rear, a new kitchen has been installed.
0:51:04 > 0:51:07Over to John to explain about this part of the house.
0:51:09 > 0:51:12We would have stripped it out completely.
0:51:12 > 0:51:16There was a door that led through from the dining room through to the kitchen,
0:51:16 > 0:51:19so we took that out because it opened into the kitchen,
0:51:19 > 0:51:21which meant you lost an entire corner.
0:51:21 > 0:51:25We changed the back door out into the yard,
0:51:25 > 0:51:28just to get more light through with the glass in the window.
0:51:28 > 0:51:32There was a water heater up on the wall here,
0:51:32 > 0:51:33which wasn't being used,
0:51:33 > 0:51:36so we took that out, bricked up the hole in the wall.
0:51:36 > 0:51:41Then just took out the old kitchen,
0:51:41 > 0:51:43put this new kitchen in and job done.
0:51:45 > 0:51:48Upstairs, the bathroom has been turned around
0:51:48 > 0:51:51with a new suite and tiling installed.
0:51:52 > 0:51:55And the front bedroom has had the fitted cupboards removed,
0:51:55 > 0:51:57been redecorated and re-carpeted.
0:51:57 > 0:52:01The same colour schemes have been used in the rear bedroom.
0:52:02 > 0:52:06And the box room? Well, it's still a box room.
0:52:06 > 0:52:09So, all in all, no major changes,
0:52:09 > 0:52:12because none were needed.
0:52:12 > 0:52:15Structurally, it was sound, but it was a bit of a mess cosmetically.
0:52:15 > 0:52:19We had a problem with the front door, which was also leaking.
0:52:19 > 0:52:22It meant one of the joists had rotted where you first come in.
0:52:22 > 0:52:26We had to replace the joists and front door.
0:52:26 > 0:52:27A couple of the floorboards had gone.
0:52:27 > 0:52:33I found out when I put my foot through them - nearly ended up in what we found was a cellar.
0:52:35 > 0:52:36Well, that was a happy accident
0:52:36 > 0:52:39to discover an extra level for the house.
0:52:39 > 0:52:42Although they haven't turned it into a liveable space,
0:52:42 > 0:52:46it did make repairing the joists easier from underneath.
0:52:46 > 0:52:50But they did have a nagging problem with the rear window.
0:52:50 > 0:52:53There were a few problems with this window when we first moved in.
0:52:53 > 0:52:57So there was plaster missing from the corner of the room
0:52:57 > 0:53:00and the window itself was leaking.
0:53:00 > 0:53:04So what we did so we didn't have to keep coming back solving problems, we took the window out,
0:53:04 > 0:53:09fitted a new window, opened it up and let the wall dry out,
0:53:09 > 0:53:12re-plastered, wallpapered and now it's great.
0:53:12 > 0:53:15The renovation has had several plastering jobs,
0:53:15 > 0:53:17radiators reattached
0:53:17 > 0:53:20and the whole house redecorated from top to bottom, wall to wall.
0:53:20 > 0:53:24Were Catherine and John able to get involved at all?
0:53:24 > 0:53:28Friends and family in various trades came along and helped out,
0:53:28 > 0:53:32so without them, we wouldn't have been able to do anything.
0:53:32 > 0:53:38We're so bad at DIY anyway, that we couldn't have done it ourselves.
0:53:38 > 0:53:40As it's not held up by pencils,
0:53:40 > 0:53:45you can see I clearly haven't done any of the work. Yes.
0:53:47 > 0:53:50John was on hand to help out with the smaller jobs.
0:53:50 > 0:53:54With the couple's friends and family, the project was completed
0:53:54 > 0:53:56in three months, a month longer than predicted.
0:53:56 > 0:53:58In general, it would be fair to say
0:53:58 > 0:54:01the turnaround in this place was hassle-free.
0:54:01 > 0:54:03So did the budget follow suit?
0:54:03 > 0:54:06The original budget was around the five grand mark.
0:54:06 > 0:54:10We thought we might have to go to 5½, depending on what we found.
0:54:10 > 0:54:15In the end, we've come in under budget at just over 4,500.
0:54:15 > 0:54:19Doing the renovation under budget was no doubt due to
0:54:19 > 0:54:22the generosity of family and friends doing the work.
0:54:22 > 0:54:26Add that £4,500 to the purchase price of 53,000
0:54:26 > 0:54:31and their total outlay now is 57,500 quid.
0:54:32 > 0:54:35Will it prove a hit with the two local estate agents
0:54:35 > 0:54:38who came to give us their thoughts on the place?
0:54:39 > 0:54:41Renovation work that's been carried out is very nice.
0:54:41 > 0:54:43Bedrooms are a good size.
0:54:43 > 0:54:46Two double bedrooms and they've got the third room as storage.
0:54:46 > 0:54:48I think this is a good property.
0:54:48 > 0:54:52They've done a reasonable refurb on it.
0:54:52 > 0:54:55Upstairs is slightly unorthodox.
0:54:55 > 0:54:59There's a small room which can only be suitable as a computer room,
0:54:59 > 0:55:03but there are two good-sized bedrooms and a nice bathroom.
0:55:03 > 0:55:06Originally, the house was bound for the rental market,
0:55:06 > 0:55:10so what sort of income could Catherine and John expect?
0:55:10 > 0:55:11If I was going to rent this property out,
0:55:11 > 0:55:16I'd look at achieving between £500-£525 per calendar month.
0:55:16 > 0:55:19I would market the property for £500 per calendar month.
0:55:19 > 0:55:22- I'm really pleased. - Yeah, that's a good price, that.
0:55:22 > 0:55:25I didn't think it would go above 500 a month, so, for the area,
0:55:25 > 0:55:27that's really good.
0:55:27 > 0:55:31We've got it on for 500 now, so hopefully we'll get that.
0:55:31 > 0:55:36If the couple managed to get that figure of £500 per calendar month,
0:55:36 > 0:55:42they could reap a very healthy annual rental yield of 10.5%.
0:55:42 > 0:55:46But bearing in mind the £57,500 outlay,
0:55:46 > 0:55:48would they make any profit if they sold it?
0:55:48 > 0:55:52If I put this property on the market today I'd market it at £80,000.
0:55:52 > 0:55:55I would market the property for £80,000.
0:55:55 > 0:55:57That's a great price. That's the price we were aiming for
0:55:57 > 0:56:00and that's why we spent a little bit more on the finishes.
0:56:00 > 0:56:03Hopefully, now it shows that it was well worth it.
0:56:03 > 0:56:06That could land the couple a potential pre-tax profit
0:56:06 > 0:56:12of £22,500 - not bad going for a first renovation
0:56:12 > 0:56:15and one that's obviously got them thinking about their next move,
0:56:15 > 0:56:19although it might not be that straightforward.
0:56:19 > 0:56:20Definitely do it again.
0:56:20 > 0:56:23I think it would be more family and friends who helped us out
0:56:23 > 0:56:24that we'd have to talk into it again.
0:56:24 > 0:56:27For us, it's great, we can just stay down south
0:56:27 > 0:56:29and not have to do very much work.
0:56:29 > 0:56:31So, yes, I'd definitely do it again.
0:56:31 > 0:56:34I'm not sure they would be quite so willing
0:56:34 > 0:56:37to do it at such cheap rates again.
0:56:39 > 0:56:41That's it for today's show.
0:56:41 > 0:56:45We'll more auction properties next time on Homes Under The Hammer.
0:56:45 > 0:56:49Make sure you join us then for more about what happens when that hammer comes down.
0:56:49 > 0:56:50- Bye for now.- Bye.
0:57:10 > 0:57:11Subtitles by Red Bee Media Ltd