0:00:02 > 0:00:04- Welcome to the programme. - Despite the gloom in the news,
0:00:04 > 0:00:08investing property can still be a tempting thing to do.
0:00:08 > 0:00:11But it's also important to be cautious, and do your research.
0:00:11 > 0:00:14Yes. And one way you can potentially get yourself a bargain
0:00:14 > 0:00:18is by buying your next home under the hammer.
0:00:43 > 0:00:46If you're looking for variety and good value,
0:00:46 > 0:00:49then a property auction may be for you.
0:00:49 > 0:00:52So, here's what lured our buyers on today's show.
0:00:53 > 0:00:56I'm "floored" by this empty shell, in Greater Manchester.
0:00:56 > 0:00:58You don't even have to go up the stairs.
0:00:58 > 0:01:01No, just have a look!
0:01:03 > 0:01:05In County Durham,
0:01:05 > 0:01:08I bust some moves that would work well on the dancefloor.
0:01:08 > 0:01:13Very 1980s, big mirrored wardrobes!
0:01:13 > 0:01:17This one-bed apartment in central London has so much potential,
0:01:17 > 0:01:20it makes your jaw hit the floor.
0:01:20 > 0:01:23For a flat in the City, I think it is amazing.
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 > 0:01:32- GAVEL BANGS - It's your property, sir.
0:01:37 > 0:01:39I'm in the town of Farnworth,
0:01:39 > 0:01:41about three miles outside Bolton,
0:01:41 > 0:01:44and nine miles from Manchester.
0:01:44 > 0:01:46This is a former coal mining area.
0:01:46 > 0:01:51By 1848, there were 20 pits located around here.
0:01:51 > 0:01:57One of the earliest paper mills in Lancashire was built in Farnworth.
0:01:57 > 0:02:01I'm here to see a property in this rather mixed residential area.
0:02:01 > 0:02:03There are houses for first-time buyers,
0:02:03 > 0:02:05there are houses for families,
0:02:05 > 0:02:07there's even bungalows.
0:02:07 > 0:02:10And, of course, we've got our auction property right here.
0:02:10 > 0:02:15It's a large detached house, it had a guide price of £75,000.
0:02:15 > 0:02:17It does look a little bit tatty on the outside.
0:02:17 > 0:02:20But it sits on a generous plot. I'm quite excited.
0:02:22 > 0:02:27This imposing four-bed house was described in the auction catalogue
0:02:27 > 0:02:30as being in need of complete renovation,
0:02:30 > 0:02:32which is always rather worrying when you first step inside.
0:02:34 > 0:02:36Ooh!
0:02:36 > 0:02:38Goodness gracious!
0:02:38 > 0:02:42It's worse inside than the outside suggests.
0:02:42 > 0:02:46You know when I said the words "tatty on the outside"? My goodness!
0:02:46 > 0:02:48Nothing prepares you for a property like this.
0:02:48 > 0:02:51Somebody's started some work.
0:02:51 > 0:02:55And, um... If you want to see what the upstairs looks like,
0:02:55 > 0:02:58you don't even have to go up the stairs out there.
0:02:58 > 0:03:00No, just have a look!
0:03:00 > 0:03:02# Uh-oh, uh-oh. #
0:03:02 > 0:03:05# Uh-oh, uh-oh. #
0:03:09 > 0:03:13So, there are no ceilings. Most of the plaster's off the wall.
0:03:13 > 0:03:15There's no electricity.
0:03:15 > 0:03:17Much of the wiring's been removed.
0:03:17 > 0:03:20There are no doors, it's just a shell.
0:03:20 > 0:03:23And it gets no better at the back.
0:03:23 > 0:03:26Through here, we've got the second reception room.
0:03:26 > 0:03:28I have to walk the board,
0:03:28 > 0:03:32because there are so many gaps on the floor where the floorboards have been taken up.
0:03:32 > 0:03:34Look at the state of it!
0:03:34 > 0:03:37There are bags of rubble everywhere.
0:03:37 > 0:03:41I think somebody's started to peel back the years here
0:03:41 > 0:03:44and potentially think about renovating this house.
0:03:44 > 0:03:48But it's not actually as big on the inside as what it looks outside.
0:03:48 > 0:03:51You come up the drive to see this huge house.
0:03:51 > 0:03:54And there's only two reception rooms in here.
0:03:54 > 0:03:56I can't see into the garden as the windows are boarded up.
0:03:56 > 0:04:02- SHE SIGHS - I think it needs a lot of time and a lot of energy spent on this place.
0:04:02 > 0:04:04# There ain't nothing wrong with this old house
0:04:04 > 0:04:07# It just needs A little home improvement. #
0:04:10 > 0:04:12As well as time and energy, you're going to need
0:04:12 > 0:04:15a strong pair of property-developing goggles
0:04:15 > 0:04:17to see the benefits of taking on this place.
0:04:19 > 0:04:21There are certainly options here.
0:04:21 > 0:04:22You could renovate it as a family home.
0:04:22 > 0:04:24Let it out as an HMO.
0:04:24 > 0:04:27Or even divide it up into flats.
0:04:28 > 0:04:31Off the rear reception, there's a narrow little room
0:04:31 > 0:04:34which, at a guess, I'd say was the former kitchen.
0:04:34 > 0:04:38Although it's hard to tell, with no fixtures or fittings in place.
0:04:39 > 0:04:41As it stands,
0:04:41 > 0:04:44this property that went to auction at a guide price of £75,000,
0:04:44 > 0:04:46isn't habitable.
0:04:46 > 0:04:48That means it's not mortgagable.
0:04:48 > 0:04:51And upstairs is the same.
0:04:51 > 0:04:55The auction catalogue described this as a four-bed house.
0:04:55 > 0:04:57But, as so many of the walls have been removed,
0:04:57 > 0:05:01it's anyone's guess where one bedroom starts, and another ends.
0:05:03 > 0:05:06And I'm assuming that this was once a bathroom.
0:05:08 > 0:05:11This property is struggling to offer any plus points.
0:05:12 > 0:05:15But, out the back, I've discovered one big bonus.
0:05:18 > 0:05:20It's what was described in the auction catalogue
0:05:20 > 0:05:23as a former self-contained basement flat.
0:05:23 > 0:05:24It's got a separate entrance here.
0:05:24 > 0:05:28Unfortunately, I can't get in there today, as it's all blocked up.
0:05:28 > 0:05:32But I have been told it's almost the same size,
0:05:32 > 0:05:34the same square footage, as up there.
0:05:34 > 0:05:36So, I'm thinking,
0:05:36 > 0:05:38teenage den, separate granny flat.
0:05:38 > 0:05:40Or, if it was my own house,
0:05:40 > 0:05:45I would love this as a big family kitchen-diner, with sliding doors
0:05:45 > 0:05:48and a big deck area, which opens out onto this big garden.
0:05:48 > 0:05:51I think it will be great for entertaining.
0:05:51 > 0:05:54And it leaves two reception rooms upstairs.
0:05:56 > 0:05:59We invited a local property expert to come and have a look at the place.
0:05:59 > 0:06:03What are her recommendations for this renovation project?
0:06:03 > 0:06:06Just what are the options here?
0:06:07 > 0:06:10Well, obviously, it needs some work doing.
0:06:10 > 0:06:12But I think it's got great potential,
0:06:12 > 0:06:18either for the buy-to-let market, or a residential home.
0:06:18 > 0:06:19You'd either renovate it
0:06:19 > 0:06:24and have it as a four-bedroom detached lovely period family home.
0:06:24 > 0:06:27Or, obviously with planning permission from the council,
0:06:27 > 0:06:33you could possibly convert it into four self-contained flats,
0:06:33 > 0:06:36which will give really good rental potential.
0:06:36 > 0:06:39Student accommodation, that sort of thing.
0:06:39 > 0:06:42What rental income could you achieve here, either as a family home,
0:06:42 > 0:06:46or as a house rented out to students?
0:06:46 > 0:06:48If this was renovated,
0:06:48 > 0:06:50and rented out as family private family residence,
0:06:50 > 0:06:55I think you'd probably be looking at about £650-£700 a month.
0:06:55 > 0:06:57But, if you went down the planning permission
0:06:57 > 0:06:59for the student accommodation,
0:06:59 > 0:07:03that could be something like £1,300 a month.
0:07:03 > 0:07:05But what about the sale value,
0:07:05 > 0:07:08both for a four-bed house,
0:07:08 > 0:07:11or for a student house divided into flats?
0:07:11 > 0:07:15As a student accommodation, obviously with the full renovation,
0:07:15 > 0:07:20You could be looking at about £190,000 to £195,000.
0:07:20 > 0:07:25For one family, about £180,000 to £185,000.
0:07:25 > 0:07:27Not quite as much.
0:07:27 > 0:07:31This is a large project for anybody to take on.
0:07:31 > 0:07:35It's practically derelict! And there's so much work to do.
0:07:35 > 0:07:38There's quite a few decisions to make here concerning that layout,
0:07:38 > 0:07:40especially the basement flat.
0:07:40 > 0:07:45So, who wasn't intimidated by the scale of the task ahead?
0:07:45 > 0:07:47Let's find out when we head to auction.
0:07:47 > 0:07:49We'll move on to lot 118.
0:07:49 > 0:07:50Four-bedroom detached house.
0:07:52 > 0:07:54It's got a self-contained basement.
0:07:54 > 0:07:57It needs some renovation.
0:07:57 > 0:07:59Where shall we be on this one? Somebody give me £40,000?
0:07:59 > 0:08:01I'll take 30 then?
0:08:01 > 0:08:0430. I'll take it. 35.
0:08:04 > 0:08:06It's got one bid at 30 at the minute. Going to say 35 -
0:08:06 > 0:08:08Are you giving me 35? You are.
0:08:08 > 0:08:0940.
0:08:09 > 0:08:1145.
0:08:11 > 0:08:13Got it. 50, sir?
0:08:13 > 0:08:1555. 60.
0:08:15 > 0:08:1765.
0:08:17 > 0:08:19At 65, can I say, sir? I can.
0:08:19 > 0:08:2270. 75.
0:08:22 > 0:08:24No? Split it?
0:08:24 > 0:08:2772 and a half. Got it. 75.
0:08:27 > 0:08:2973?
0:08:29 > 0:08:3174?
0:08:31 > 0:08:33Yeah, another one? 75.
0:08:33 > 0:08:3576?
0:08:35 > 0:08:38No. Are we all finished at £75,000?
0:08:39 > 0:08:42First time at 75. Second time at 75,000.
0:08:42 > 0:08:43- GAVEL BANGS - It's yours.
0:08:43 > 0:08:46And the number is?
0:08:46 > 0:08:49That final successful bid of £75,000,
0:08:49 > 0:08:53bang on the guide price, was made by Colin.
0:08:53 > 0:08:56He works as an estate agent in the Greater Manchester area.
0:08:57 > 0:09:01# He's Mr Know It All. #
0:09:03 > 0:09:07I met up with Colin back at the house to find out more.
0:09:08 > 0:09:11Colin, lovely to meet you today. I do recognise your face.
0:09:11 > 0:09:13I'm sure you've been on the show before.
0:09:13 > 0:09:15I have been on the show before.
0:09:15 > 0:09:16I'm usually on the other side of the fence,
0:09:16 > 0:09:19I'm normally in the estate agency camp.
0:09:19 > 0:09:21Hold on, Colin, you're not supposed to be buying the stock up!
0:09:21 > 0:09:24No, we're not allowed to buy our own stock.
0:09:24 > 0:09:27But we've been running a property business for 30 years.
0:09:27 > 0:09:31And, with the recession, estate agency's a bit more difficult these days.
0:09:31 > 0:09:34So I'm spending more of my time looking for other opportunities,
0:09:34 > 0:09:36and obviously we've bought this from somebody else's auction.
0:09:36 > 0:09:39So, is this property predominantly for you,
0:09:39 > 0:09:41to go in your portfolio of properties?
0:09:41 > 0:09:43Well, this one is to buy and sell.
0:09:43 > 0:09:46So, we're going to buy this, renovate it, and then sell it.
0:09:46 > 0:09:49So, we're not going to keep it in our portfolio,
0:09:49 > 0:09:51this is going to be shifted through.
0:09:52 > 0:09:54So, as well as being an estate agent,
0:09:54 > 0:09:58Colin is also a partner in the family property business.
0:09:58 > 0:09:59They run an auction house,
0:09:59 > 0:10:04and also buy, sell and let properties.
0:10:05 > 0:10:07This is going to be an easy chat for me.
0:10:07 > 0:10:10Basically, through the eyes of an estate agent,
0:10:10 > 0:10:13what did you see, what is so great about this place that you wanted to buy it?
0:10:13 > 0:10:15It's a large house.
0:10:15 > 0:10:18It doesn't look as large inside as it does outside.
0:10:18 > 0:10:20It's rather disappointing on the inside.
0:10:20 > 0:10:22"Disappointing" isn't the word I'd have used.
0:10:22 > 0:10:24It's just slightly deceptive.
0:10:24 > 0:10:27But I think that's mainly because it's in such a poor state.
0:10:27 > 0:10:30To me, it just looks derelict and almost as if it's going to fall down.
0:10:30 > 0:10:34You don't have to go upstairs to look at the bedrooms. Look!
0:10:34 > 0:10:35There's one there! There's one there!
0:10:35 > 0:10:39I mean, you can see through the floorboards, for goodness sake!
0:10:39 > 0:10:42I think they've perhaps taken the refurbishment a little bit far. SHE LAUGHS
0:10:42 > 0:10:44Preparing for the electrics and the wiring
0:10:44 > 0:10:46by taking all the floors out is extreme.
0:10:46 > 0:10:49To most people, they'd come and think it's a derelict wreck.
0:10:49 > 0:10:52For me, it's saved a load of money clearing it out.
0:10:52 > 0:10:54It's a great, blank canvas.
0:10:54 > 0:10:57But it needs completely doing. So, the wiring,
0:10:57 > 0:11:00the plumbing, heating, kitchens, bathrooms.
0:11:00 > 0:11:03There are some walls that are going to be moved around.
0:11:03 > 0:11:06We're going to put a bathroom in where it's just a tiny little hole at the minute.
0:11:06 > 0:11:09We're going to make the two bedrooms at the front,
0:11:09 > 0:11:13where it's one big bedroom at the minute, and it can afford to be two bedrooms.
0:11:13 > 0:11:16The bedroom that's immediately above us doesn't look that big
0:11:16 > 0:11:19but actually it's 14x13.
0:11:19 > 0:11:22- Hold on a minute. - HE LAUGHS
0:11:22 > 0:11:24Yep, I can go with that!
0:11:24 > 0:11:25It's the same size as this room.
0:11:25 > 0:11:29- And I can see it!- So this roughly the size of the room you've got.
0:11:29 > 0:11:31So you'll end up with one great master bedroom,
0:11:31 > 0:11:35two really good single bedrooms.
0:11:35 > 0:11:38And a smaller single bedroom at the back of the house.
0:11:38 > 0:11:40It's got the room downstairs,
0:11:40 > 0:11:43which means it can still have two great reception rooms.
0:11:43 > 0:11:46A great dining kitchen. Where would you find a dining kitchen that size?
0:11:46 > 0:11:50- Obviously, I'm thinking this is going to be the kitchen?- Yes.
0:11:50 > 0:11:52We're stood in the kitchen at the minute.
0:11:52 > 0:11:55The attraction for me of having two reception rooms on different levels,
0:11:55 > 0:11:58if you go into most houses, the reception rooms are next to each other.
0:11:58 > 0:12:01If you've got noisy teenagers,
0:12:01 > 0:12:04and they want to play their music or have their telly a bit loud.
0:12:04 > 0:12:06Or just have some fun.
0:12:06 > 0:12:08And you've got Mum and Dad in the next room going,
0:12:08 > 0:12:11"Turn it down" Cut the noise!"
0:12:11 > 0:12:12They can go downstairs
0:12:12 > 0:12:15and have as much noise as they like. Get it well insulated.
0:12:15 > 0:12:16The kids can have a great time.
0:12:16 > 0:12:19Parents can have a great time, well away from each other,
0:12:19 > 0:12:21not causing either of them any trauma.
0:12:21 > 0:12:25Clearly, Colin's planning a single residence here as a family home,
0:12:25 > 0:12:28rather than a multi-let.
0:12:28 > 0:12:31This rear ground floor room will be the dining kitchen.
0:12:31 > 0:12:35The front room on this level will be the first reception room.
0:12:35 > 0:12:37The basement flat will be the second reception room.
0:12:38 > 0:12:41Colin's obviously put a lot of thought into this property.
0:12:41 > 0:12:43It's a big project
0:12:43 > 0:12:46and he's only just got married and got back from his honeymoon.
0:12:48 > 0:12:52Colin, tell me, what does your new wife think about this project?
0:12:52 > 0:12:54- Has she seen the state of this property?- No, no.
0:12:54 > 0:12:56She already says I work too hard, too many hours.
0:12:56 > 0:12:59And if she saw the time I'm going to have to spend on this.
0:12:59 > 0:13:01Ooh...
0:13:01 > 0:13:03And this wasn't the only one I bought at that auction, so,
0:13:03 > 0:13:05um, yeah, I'm going to be very busy.
0:13:05 > 0:13:07How many projects have you got on the go?
0:13:07 > 0:13:10At the minute, we've got 30 projects on the go.
0:13:10 > 0:13:14So, I am hectically busy at the moment.
0:13:14 > 0:13:15The property business is good.
0:13:15 > 0:13:17There are buyers out there in the market.
0:13:17 > 0:13:19There's good properties to buy.
0:13:19 > 0:13:22So, for me it's really healthy at the moment.
0:13:22 > 0:13:27And life is very positive, and some really exciting projects.
0:13:27 > 0:13:28And your budget?
0:13:28 > 0:13:30HE LAUGHS
0:13:30 > 0:13:32We're spending £40,000 on it.
0:13:32 > 0:13:35- £40,000. How long is it going to take you to do?- Eight weeks.
0:13:35 > 0:13:37- Eight weeks!- Eight weeks.
0:13:37 > 0:13:40- So you've got your team ready, on standby?- Yes.- To start the job. - Yeah.
0:13:40 > 0:13:43It won't necessarily be eight weeks from today,
0:13:43 > 0:13:44cos we might not start today.
0:13:44 > 0:13:46But, from the day we walk into the property,
0:13:46 > 0:13:49- to the day he gives me the keys back, it will be eight weeks. - Will it really?- Yes.
0:13:49 > 0:13:51Colin, I'm so excited for you.
0:13:51 > 0:13:55- Good luck, can't wait to see what it looks like.- Thanks, Lucy.
0:13:55 > 0:13:57Colin has just come back from his honeymoon.
0:13:57 > 0:13:59He's taken on this large house to redevelop.
0:13:59 > 0:14:02And also has another 30 properties on the go.
0:14:02 > 0:14:05And that's on top of his estate agency work!
0:14:05 > 0:14:07With his years of experience,
0:14:07 > 0:14:10a project like this, it doesn't seem to faze him at all.
0:14:10 > 0:14:14But will he really finish this big house in just eight weeks?
0:14:14 > 0:14:18Stay with us. You can find out what happens later on in the programme.
0:14:24 > 0:14:27I've come to County Durham's breathtaking coastline
0:14:27 > 0:14:29to visit Seaham, a former mining town
0:14:29 > 0:14:32just a few miles south of Sunderland.
0:14:32 > 0:14:38It's big claim to fame is that it was used as a location for the film, Billy Elliot.
0:14:38 > 0:14:41# They say that we love to boogie
0:14:41 > 0:14:44# We love to boogie
0:14:44 > 0:14:47# Have to boogie
0:14:47 > 0:14:49# The jitterbug boogie
0:14:49 > 0:14:53# We love to boogie On a Saturday night. #
0:14:55 > 0:14:59So, is the property I'm here to see going to have me dancing for joy?
0:14:59 > 0:15:02Well, from the outside, it actually looks pretty good.
0:15:02 > 0:15:06£39,950 was the guide price.
0:15:06 > 0:15:08Two-bedroom bungalow.
0:15:08 > 0:15:10Now, these things are a bit interesting
0:15:10 > 0:15:13because they're sort of back-to-front in this little estate.
0:15:13 > 0:15:15This is actually the rear of the property,
0:15:15 > 0:15:17but it's probably the entrance most people use.
0:15:17 > 0:15:18So, why be different?
0:15:18 > 0:15:24# Back to front, front to back Will you come backwards with me?
0:15:24 > 0:15:28# Backwards with me? #
0:15:28 > 0:15:30A quick pirouette to the front of the house,
0:15:30 > 0:15:32and you can see what I mean.
0:15:32 > 0:15:36So, I suppose, strictly speaking, this is the back door.
0:15:37 > 0:15:40It leads straight into the kitchen.
0:15:40 > 0:15:42Not surprisingly, I guess.
0:15:42 > 0:15:46And, not a bad kitchen it is.
0:15:46 > 0:15:48It's kind of in that era where it just about needs to be replaced.
0:15:48 > 0:15:50Probably about 20 years old.
0:15:50 > 0:15:53But you might want to consider just putting a new work surface,
0:15:53 > 0:15:55or maybe cupboard and drawer fronts.
0:15:55 > 0:15:57That could definitely give it a bit of a lease of life.
0:15:57 > 0:16:00And maybe change the tiles, which are a bit dated.
0:16:00 > 0:16:03But, the whole house, is just that little bit...
0:16:03 > 0:16:07It's not bad. In fact, it's actually quite good. But it just needs updating.
0:16:07 > 0:16:09In here, main living room area. You've got a gas fire.
0:16:09 > 0:16:12Again, a little bit dated, you probably want to replace that.
0:16:12 > 0:16:14Some of this stuff on the walls could come off,
0:16:14 > 0:16:17and just make it nice and plain and simple. It's not a bad-sized space.
0:16:17 > 0:16:20Through to your main sleeping accommodation.
0:16:20 > 0:16:23You've got your bathroom and toilet there.
0:16:23 > 0:16:26First bedroom there. That's a bit worrying on that wall.
0:16:26 > 0:16:28You could be forgiven for thinking
0:16:28 > 0:16:31that someone's tried to doodle a map of the world here.
0:16:31 > 0:16:36But this is actually an enormous damp patch. Not good!
0:16:37 > 0:16:39This is the second bedroom.
0:16:39 > 0:16:44- HE LAUGHS - Again, very 1980s. Big mirrored wardrobes!
0:16:44 > 0:16:47But, as I keep on saying, whenever I visit properties,
0:16:47 > 0:16:50you must always look inside cupboards and things
0:16:50 > 0:16:53because it can reveal a multitude of problems.
0:16:53 > 0:16:54And, in fact, there it is.
0:16:54 > 0:16:57It wasn't just confined to that bedroom.
0:16:57 > 0:17:00There, the damp, which I saw, is in this room as well.
0:17:00 > 0:17:05It's a bit more of a serious problem than I had initially thought.
0:17:05 > 0:17:08And also, this wardrobe.
0:17:08 > 0:17:10I think it shrinks the room a bit too much. So, get rid of that.
0:17:10 > 0:17:14And, more importantly, try and figure out what's going on with that damp.
0:17:16 > 0:17:18More often than not, there's no great mystery
0:17:18 > 0:17:21when it comes to a wet, wet, wet patch like this!
0:17:21 > 0:17:24So, it's straight out to the front garden
0:17:24 > 0:17:26to see if anything obvious is amiss.
0:17:26 > 0:17:28HE LAUGHS
0:17:28 > 0:17:31Well, you know, it's a bit strange,
0:17:31 > 0:17:33because this is definitely the front of the property,
0:17:33 > 0:17:37because you've got the front doors, the numbers, names of the houses.
0:17:37 > 0:17:40But, instead of having a road there, you've just got this little walkway.
0:17:40 > 0:17:43But, given that the main garden of the property is out here
0:17:43 > 0:17:45at the front, back, whatever you want to call it,
0:17:45 > 0:17:48I actually think it works quite well because, if you have children,
0:17:48 > 0:17:50no danger of them running out onto the road.
0:17:50 > 0:17:52So it's also quite quiet.
0:17:52 > 0:17:55While I'm out here, one thing I do notice, up on the roof there,
0:17:55 > 0:17:59if you notice where the roof of our property joins the next one,
0:17:59 > 0:18:02there's a bit of concrete just missing there, a little fillet.
0:18:02 > 0:18:05I reckon that is where the water's getting in
0:18:05 > 0:18:07and causing the damp below.
0:18:07 > 0:18:09Not too expensive to fix that.
0:18:09 > 0:18:11And, in terms of downstairs,
0:18:11 > 0:18:14a bit of replastering and repainting required.
0:18:15 > 0:18:19All in all, and in spite of the damp issues,
0:18:19 > 0:18:22I'm really quite taken with this little bungalow.
0:18:22 > 0:18:26It went to auction with a guide price just shy of £40,000.
0:18:26 > 0:18:30We asked along a local estate agent to get his thoughts on the property.
0:18:30 > 0:18:33There are a few positives to the property.
0:18:33 > 0:18:36It doesn't need a great deal of work doing to the place.
0:18:36 > 0:18:38It won't need a great deal of money spending on it,
0:18:38 > 0:18:40other than whatever happens with the damp.
0:18:42 > 0:18:45Once done up, what might it sell for?
0:18:45 > 0:18:48Once fully renovated, in the current market,
0:18:48 > 0:18:52it will probably fetch between £75,000 and £80,000.
0:18:52 > 0:18:55Wow, that's almost twice the guide price.
0:18:55 > 0:18:56What about renting out the bungalow?
0:18:58 > 0:19:01Rental-wise, in the current market, once fully renovated,
0:19:01 > 0:19:06you're probably looking between £450 and £475 per calendar month.
0:19:06 > 0:19:09Well, I don't know about you, but I think this one's a bit of a find.
0:19:09 > 0:19:12Yes, a little bit of a damp problem to sort out,
0:19:12 > 0:19:13but that's not going to cost much.
0:19:13 > 0:19:15Easy to rent, easy to maintain,
0:19:15 > 0:19:18an ideal purchase to live in or rent out.
0:19:18 > 0:19:22Let's see who went for it when it sold under the hammer.
0:19:23 > 0:19:26So we're going to lot number 44.
0:19:26 > 0:19:29We've got this with a price guide of 39,950 plus.
0:19:29 > 0:19:32I'll ask 40,000 to start.
0:19:32 > 0:19:3540,000 anywhere?
0:19:35 > 0:19:3739?
0:19:37 > 0:19:4039,000 bid. We've got the one bid.
0:19:40 > 0:19:41We're off and going at 40,000.
0:19:41 > 0:19:4340,000 bid.
0:19:43 > 0:19:4741. 42. 43.
0:19:47 > 0:19:4844.
0:19:48 > 0:19:5043,000, this gentleman sitting down.
0:19:50 > 0:19:5144 bid.
0:19:51 > 0:19:5445. 46.
0:19:54 > 0:19:57It's the gentleman sitting down, at £45,000.
0:19:57 > 0:19:59I am going to sell. I'll take 500.
0:19:59 > 0:20:01I'm selling, once, at 45.
0:20:01 > 0:20:02You're going to miss out.
0:20:02 > 0:20:05I'm selling for the second time, at 45,000.
0:20:05 > 0:20:07On the front row, 45 and a half. 46.
0:20:07 > 0:20:0946 and a half.
0:20:09 > 0:20:1047. And a half.
0:20:10 > 0:20:1348.
0:20:13 > 0:20:15And a half. 49.
0:20:15 > 0:20:16And a half.
0:20:16 > 0:20:1850,000. And a half.
0:20:20 > 0:20:2450,000. The gentleman sitting in the third row at £50,000.
0:20:24 > 0:20:27No? Sticking to your guns.
0:20:27 > 0:20:28I'm selling, once, at 50,000.
0:20:28 > 0:20:32I'm selling for the second time, at £50,000.
0:20:32 > 0:20:33- GAVEL BANGS - Sold to the gentleman in the third row.
0:20:36 > 0:20:40That successful bid of £50,000 was placed by Graham,
0:20:40 > 0:20:42who attended the auction with his wife, Tracey.
0:20:42 > 0:20:46She's a nurse, and Graham works at a local car plant.
0:20:46 > 0:20:53# Who's gonna drive you home tonight? #
0:20:53 > 0:20:55I caught up with them back at the property,
0:20:55 > 0:21:00to see this one would be a slick change or a kangaroo start.
0:21:00 > 0:21:04- Graham, Tracey, lovely to meet you both.- Hello.- Hello.- Congratulations. - Thank you.
0:21:04 > 0:21:06Tell me why you wanted to buy this little place?
0:21:06 > 0:21:08- We're buying it for rental. - Rental?- Yes.
0:21:08 > 0:21:10- You sound like, "That's it, that's what we're doing." - Yeah.- Simple as that.
0:21:10 > 0:21:11THEY LAUGH
0:21:11 > 0:21:15- Is this something you've done before? - Yes, it's our third property.
0:21:15 > 0:21:17What started you out in the whole buying properties
0:21:17 > 0:21:19to rent rather than live in?
0:21:19 > 0:21:23We bought a property, helped our daughter on the property ladder a few years ago,
0:21:23 > 0:21:24and I did the house for her.
0:21:24 > 0:21:26And I thought I could do one myself.
0:21:26 > 0:21:30- And we're doing it for a pension fund really, for later in life.- Right.
0:21:30 > 0:21:33So, why this particular property?
0:21:33 > 0:21:35We just rented our last property out,
0:21:35 > 0:21:39and we were inundated with people asking us for properties.
0:21:39 > 0:21:41Inundated, how inundated?
0:21:41 > 0:21:46- We must have 10 or 15 people actually interested in wanting properties from us.- Wow.
0:21:46 > 0:21:49So, obviously, you're going to get 15 more properties then!
0:21:49 > 0:21:51- One every year, for ten years, that was the plan.- Really ?
0:21:51 > 0:21:56- But we've actually done three in... - Two years now.
0:21:56 > 0:21:59- The income from the others will pay to do this one.- Right.
0:21:59 > 0:22:02You use the money generated from the rental on the other properties.
0:22:02 > 0:22:03We don't take anything out of it,
0:22:03 > 0:22:05we just plough it back into the properties,
0:22:05 > 0:22:07keep improving the properties we've got.
0:22:07 > 0:22:12But all the time building a portfolio that's getting better and better,
0:22:12 > 0:22:14- bigger and bigger.- Just adding to the ones that we've got
0:22:14 > 0:22:16doing a little bit extra to them here and there.
0:22:16 > 0:22:19Well, considering you're not property experts,
0:22:19 > 0:22:23- you're certainly showing people how it should be done, aren't you?!- Yep.
0:22:23 > 0:22:26These two certainly seem to be motoring
0:22:26 > 0:22:29towards a good, solid portfolio of properties.
0:22:29 > 0:22:32# Life in the fast lane
0:22:32 > 0:22:34# Everything, all the time
0:22:34 > 0:22:38# Life in the fast lane, a-ha. #
0:22:39 > 0:22:42They're well prepared for this one, having checked the costs
0:22:42 > 0:22:45for the major jobs before they even bought it.
0:22:45 > 0:22:48They were quoted £1,200 by a builder to sort out the damp problems,
0:22:48 > 0:22:52and another £1,200 if they needed to replace the combi boiler.
0:22:52 > 0:22:56And their total budget, £5,000.
0:22:56 > 0:22:59So tell me what you're going to do to sort it out?
0:22:59 > 0:23:02We've got the dampness to do first.
0:23:02 > 0:23:05And then we'll get a health check done on the heating system.
0:23:05 > 0:23:07If we need to change into a combi boiler,
0:23:07 > 0:23:09there'll be a new combi boiler goes in.
0:23:09 > 0:23:12Probably in the loft, it's the easiest place for it to go.
0:23:12 > 0:23:16We've got a lot of the tiles to take off in the kitchen because of dampness.
0:23:16 > 0:23:20New worktops in the kitchen. And a new bathroom suite.
0:23:20 > 0:23:23- Right, you're just replacing the worktops in the kitchen?- Yes.
0:23:23 > 0:23:26Possibly, it's not too bad. Maybe use the doors.
0:23:26 > 0:23:28We won't know till we get stuck in.
0:23:28 > 0:23:30But the actual cabinets are all fine?
0:23:30 > 0:23:32Everything looks pretty sound.
0:23:32 > 0:23:35- The main problem in the property is the dampness.- Right.
0:23:35 > 0:23:36That's the main issue.
0:23:36 > 0:23:38- And who does the work?- Me.
0:23:38 > 0:23:40- And myself. - Tracey does a lot of work as well.
0:23:40 > 0:23:45- She tends to be my skivvy. - Labourer!- Labourer.
0:23:45 > 0:23:49What kind of bits and pieces will you actually do, then?
0:23:49 > 0:23:51Everything, apart from gas and electricity.
0:23:51 > 0:23:53Plastering?
0:23:53 > 0:23:55I've got a plasterer who comes in, but I do help him.
0:23:55 > 0:23:59So I mix all the plaster, and stuff like that.
0:23:59 > 0:24:02I can do all the woodwork. I do everything, basically.
0:24:02 > 0:24:06# Why don't you do it yourself?
0:24:06 > 0:24:09# D-I-Y, baby, do it yourself. #
0:24:11 > 0:24:16Graham and Tracey's DIY and skivvying skills are going to come in really handy here.
0:24:16 > 0:24:19As they've got a tenant lined up to move in,
0:24:19 > 0:24:22the couple are planning to have the house ready in 10 to 12 weeks.
0:24:22 > 0:24:25But, for the first week of that,
0:24:25 > 0:24:27they'll be putting their feet up on holiday in Tenerife.
0:24:27 > 0:24:31Not a bad way to start a refurbishment!
0:24:31 > 0:24:34While we're away, hopefully we can have a builder in to do all the damp proofing.
0:24:34 > 0:24:36- So when they get back, it'll be done.- It'll be ready for us.
0:24:36 > 0:24:41- That's the plan.- You can get stuck in. You're doing it evenings and weekends, presumably?- Yes.
0:24:41 > 0:24:45I work shifts, so when I'm on a late shift, when I start at five o'clock at night,
0:24:45 > 0:24:47I come down during the day
0:24:47 > 0:24:49and work until about one, and then go home.
0:24:49 > 0:24:51Right. Gosh.
0:24:51 > 0:24:53You can't get much sleep then.
0:24:53 > 0:24:55Par for the course, I think.
0:24:55 > 0:24:58Listen, congratulations. And well done in what you're doing.
0:24:58 > 0:25:01It seems like you're doing it in exactly the right way.
0:25:01 > 0:25:05- I look forward to seeing how you transform the place. - Thank you.- Thank you. Thanks.
0:25:05 > 0:25:08Well, they haven't been at it for long,
0:25:08 > 0:25:12but Graham and Tracey can almost run a masterclass in property investment.
0:25:12 > 0:25:14They've chosen a good house here.
0:25:14 > 0:25:16They've already got a tenant lined up,
0:25:16 > 0:25:19and they're very strict in terms of their budget.
0:25:19 > 0:25:21You can find out how they get on,
0:25:21 > 0:25:24something tells me it'll be just fine...but you never know...
0:25:24 > 0:25:26later in the show.
0:25:26 > 0:25:28Coming up,
0:25:28 > 0:25:33the yield on this one bed central London flat is potentially sky high.
0:25:33 > 0:25:36Wow, the numbers really do stack up for me.
0:25:37 > 0:25:41In Seaham, County Durham, Graham and Tracey's renovation
0:25:41 > 0:25:43was beset with disaster.
0:25:43 > 0:25:45After we decorated the two bedrooms, we had water come in,
0:25:45 > 0:25:47so we had to redecorate them again.
0:25:48 > 0:25:50But first, in Greater Manchester,
0:25:50 > 0:25:55Colin's team has been hard at work and he is chuffed with the results.
0:25:55 > 0:25:57We've come out with a terrific finished article.
0:26:01 > 0:26:05Back in Outer Farnworth, Greater Manchester,
0:26:05 > 0:26:09to check on progress at this empty shell of a four-bed, detached house.
0:26:09 > 0:26:13Local estate agent and experienced property developer Colin
0:26:13 > 0:26:16had bought it at auction for 75,000.
0:26:16 > 0:26:20There was plenty to do to knock this one into shape, including
0:26:20 > 0:26:25the lower ground floor/basement that we weren't able to look into before.
0:26:25 > 0:26:29But Colin was quite clear what it would take to sort the place out.
0:26:29 > 0:26:31Spending £40,000 on it.
0:26:31 > 0:26:33£40,000. How long is it going to take you to do?
0:26:33 > 0:26:35From the day we walk into the property to the day
0:26:35 > 0:26:37he gives me the keys back,
0:26:37 > 0:26:39- it will be eight weeks. - Will it really?- Yes.
0:26:40 > 0:26:45Eight months rather than eight weeks after our first visit, we're back
0:26:45 > 0:26:47to see how things have gone for Colin
0:26:47 > 0:26:50and this rather unloved property.
0:26:50 > 0:26:53# Hey, show some love
0:26:53 > 0:26:56# You ain't so tough
0:26:56 > 0:26:59# Come fill my little world
0:26:59 > 0:27:01# Right up, right up
0:27:01 > 0:27:06# Some day you are going to realise
0:27:06 > 0:27:08# I want to
0:27:08 > 0:27:11# To fill my little world right up
0:27:11 > 0:27:15# Right up, right up. #
0:27:15 > 0:27:17Hooray!
0:27:17 > 0:27:20With internal walls in place and kitchen and bathrooms fitted,
0:27:20 > 0:27:24it is much easier to make sense of the layout of this four-bed home.
0:27:24 > 0:27:27And it all looks spick-and-span, too.
0:27:27 > 0:27:30In through the front door and on the ground floor,
0:27:30 > 0:27:34there is a good-sized dining kitchen and lounge.
0:27:34 > 0:27:37Down the stairs, Colin has had the basement tanked to keep
0:27:37 > 0:27:40the damp out and turn it into a really useful space.
0:27:40 > 0:27:43There's a utility room and a loo down there to boot.
0:27:43 > 0:27:47Colin sees this as a second lounge or playroom for kids.
0:27:47 > 0:27:50And with the double doors out onto a good-sized garden,
0:27:50 > 0:27:52I can see that working pretty well.
0:27:52 > 0:27:55The first floor was an unholy mess,
0:27:55 > 0:27:58but now there are four bedrooms, two singles and two doubles,
0:27:58 > 0:28:03one of which is an en suite, as well as a good-sized family bathroom.
0:28:03 > 0:28:05There is no denying that Colin
0:28:05 > 0:28:08and his team of builders have transformed the place.
0:28:08 > 0:28:12But he was pretty adamant it would only take eight weeks.
0:28:12 > 0:28:14So, why the delay?
0:28:14 > 0:28:18It probably has taken us about 10 to 12 weeks to do the work.
0:28:18 > 0:28:19So, it did take a little longer.
0:28:19 > 0:28:23We ended up taking walls down that we weren't anticipating having to
0:28:23 > 0:28:24take down.
0:28:24 > 0:28:28Doing the cellar took a little bit longer than we anticipated,
0:28:28 > 0:28:31so we've ended up with an extra three or four weeks run on
0:28:31 > 0:28:33from the original time scale.
0:28:33 > 0:28:37So, it's not been too bad. We just delayed starting it.
0:28:37 > 0:28:40And that is why it has taken longer than we anticipated.
0:28:42 > 0:28:44OK, we'll let you off this time, Colin,
0:28:44 > 0:28:48since you did have about 30 other projects on the go at the same time,
0:28:48 > 0:28:50but what about the budget?
0:28:51 > 0:28:55The original budget was 40,000, we've ended up spending 50,000.
0:28:55 > 0:28:57So, we spent £10,000 more.
0:28:57 > 0:29:01The bulk of that went into rebuilding walls,
0:29:01 > 0:29:04walls that when we took the plaster off and the staircase out,
0:29:04 > 0:29:07they were not really good enough to put back.
0:29:07 > 0:29:10So we had to take them down, rebuild them. And the tanking of the cellar.
0:29:10 > 0:29:12We spent more money tanking the cellar than anticipated.
0:29:12 > 0:29:17So those were the two areas of the budget that got blown a little bit.
0:29:17 > 0:29:20So, that's how we ended up at 50.
0:29:21 > 0:29:25I thought Colin might move the kitchen down into the basement,
0:29:25 > 0:29:26but to his credit,
0:29:26 > 0:29:30having it on the ground floor wasn't such a bad move after all.
0:29:31 > 0:29:35Keeping the kitchen upstairs was a real discussion point.
0:29:35 > 0:29:38We decided that it was the centrepiece of the house,
0:29:38 > 0:29:40you know, it was where the family can come together.
0:29:40 > 0:29:43It's a great entertaining space.
0:29:43 > 0:29:45We've got the lounges downstairs and upstairs.
0:29:45 > 0:29:49So, we felt for the family and for it to be a great entertaining area,
0:29:49 > 0:29:51the kitchen was best-placed here.
0:29:53 > 0:29:58So with his purchase price of 75,000 and his renovation costs coming in at 50 grand,
0:29:58 > 0:30:04Colin's total outlay on the project is 125,000.
0:30:04 > 0:30:06We asked two local estate agents to cast their eyes
0:30:06 > 0:30:09over this local estate agent's work.
0:30:11 > 0:30:14It's a lovely big property. I'm quite surprised by the size of it
0:30:14 > 0:30:15when I came round.
0:30:15 > 0:30:19The owner has, obviously, done a lot of work to the property
0:30:19 > 0:30:21and done a good job. It's a good finish
0:30:21 > 0:30:22to the property.
0:30:22 > 0:30:24Yeah, first impressions.
0:30:24 > 0:30:26Contemporary, four-bedroom, detached house.
0:30:26 > 0:30:28Great presentation, nice finish
0:30:28 > 0:30:30and perfect for young families in the area.
0:30:32 > 0:30:35What could the property rent out for?
0:30:36 > 0:30:39I think I'd be able to rent the property at between £650
0:30:39 > 0:30:42and £675 per month.
0:30:42 > 0:30:46I would be able to rent this property for £695 per calendar month.
0:30:46 > 0:30:48On the rental side... I'm not looking to rent it,
0:30:48 > 0:30:51so it doesn't really make a great deal of difference to me.
0:30:51 > 0:30:55If someone said to me they give me 675, I'd say no.
0:30:55 > 0:30:58Well, if Colin was offered £675 a month,
0:30:58 > 0:31:02he'd be turning his nose up at a yield of 6.5%,
0:31:02 > 0:31:05something tells me he's pretty confident resale
0:31:05 > 0:31:07is the better option here.
0:31:07 > 0:31:12Remember, his total spend is 125,000.
0:31:12 > 0:31:14I would put this property on the market
0:31:14 > 0:31:17for offers over £165,000.
0:31:17 > 0:31:19I'd be comfortable to put the property on the market
0:31:19 > 0:31:23for between £165,000 and £175,000.
0:31:23 > 0:31:27I think you'd get quite a lot of interest at that price.
0:31:27 > 0:31:31I'm very happy with 165, that's where I would put the price myself.
0:31:31 > 0:31:34We're going to offer a part exchange with it, so somebody
0:31:34 > 0:31:38has a house that they can't sell or they don't want to put on the market,
0:31:38 > 0:31:39they just want to move,
0:31:39 > 0:31:42then we can offer to buy their house at the same time.
0:31:42 > 0:31:46Colin is no stranger to developing property in the area,
0:31:46 > 0:31:49but how has he found this particular project?
0:31:49 > 0:31:52It's been very challenging.
0:31:52 > 0:31:58It was a large house, requiring a lot more TLC than even I anticipated.
0:31:58 > 0:32:03So, it's been a real challenge, lots of hurdles along the way.
0:32:03 > 0:32:07But I think we've come out with a terrific finished article.
0:32:13 > 0:32:17Today, I am in the beating heart of the City of London.
0:32:18 > 0:32:20# Hot town, summer in the city
0:32:20 > 0:32:22# Back of my neck Getting dirty and gritty
0:32:22 > 0:32:24# Been down, isn't it a pity
0:32:24 > 0:32:27# Doesn't seem to be a shadow In the city. #
0:32:29 > 0:32:33If you were walking down this London street in the 1600s
0:32:33 > 0:32:35and happened to glance skywards,
0:32:35 > 0:32:38you would've seen the heads of convicts on spikes
0:32:38 > 0:32:39of the city gates,
0:32:39 > 0:32:42which served as a warning to other undesirables.
0:32:42 > 0:32:46Fast-forward 400 years and that very same skyline
0:32:46 > 0:32:50is dominated by the tall buildings of the city's financial district,
0:32:50 > 0:32:54where property has always been a valuable commodity.
0:32:54 > 0:32:59# Cos when a long-legged lovely walks by
0:32:59 > 0:33:02# Yeah, you can see the look in her eye
0:33:02 > 0:33:06# And you know that it's hot in the city
0:33:06 > 0:33:10# Hot in the city tonight. #
0:33:11 > 0:33:15There's hustle and bustle aplenty around here, but I'm hoping
0:33:15 > 0:33:19the flat I'm here to see will be an oasis of calm.
0:33:19 > 0:33:23So, fight through the crowds and you'll get to this building,
0:33:23 > 0:33:26where above me is lot 147.
0:33:26 > 0:33:28It is a fourth floor, one-bedroom flat.
0:33:28 > 0:33:33The guide price, 225,000 to 250,000.
0:33:33 > 0:33:34This is a positive start,
0:33:34 > 0:33:38you've got that electronic entry system and a working lift.
0:33:40 > 0:33:43# You've raised me up
0:33:43 > 0:33:48# To more than I can be. #
0:33:48 > 0:33:52The ground floor of the building is a shop with offices above,
0:33:52 > 0:33:54then flats above them.
0:33:54 > 0:33:57This kind of mixed usage in a building can sometimes make it
0:33:57 > 0:34:00trickier to get a mortgage, but if you shop around,
0:34:00 > 0:34:03you should find something that suits.
0:34:03 > 0:34:06I'm quite excited to have a look around this one-bedroom flat.
0:34:06 > 0:34:08You would never know it was here.
0:34:08 > 0:34:12So, there's the kitchen to the left, in really good condition.
0:34:12 > 0:34:14It's got a contemporary feel to it.
0:34:14 > 0:34:16Some slate flooring down there.
0:34:16 > 0:34:18Although I would change the worktops.
0:34:18 > 0:34:20Got the entry phone system here.
0:34:20 > 0:34:24And this lovely, light and open dining area.
0:34:24 > 0:34:26This to me is a real bonus.
0:34:26 > 0:34:29You could even get a table and chairs seating six people here.
0:34:29 > 0:34:31But if you like your privacy,
0:34:31 > 0:34:33you might think about putting some blinds up there,
0:34:33 > 0:34:36because you are overlooked by all the office buildings.
0:34:36 > 0:34:39But it does let in an enormous amount of light.
0:34:39 > 0:34:41It's got a lovely flow that goes right the way through
0:34:41 > 0:34:42into the lounge.
0:34:42 > 0:34:45Now, the good thing is, because the furniture has all been left here,
0:34:45 > 0:34:48you can see by the configuration of these sofas
0:34:48 > 0:34:49how it is going to be.
0:34:49 > 0:34:53It's a really, really comfortable space.
0:34:53 > 0:34:56For a flat in the city, I think it is amazing.
0:34:56 > 0:34:57It would suit a city worker.
0:34:57 > 0:35:00I mean, this really is a good start.
0:35:01 > 0:35:05The bedroom is a decent size and the bathroom looks the part, too.
0:35:05 > 0:35:07Another two ticks.
0:35:07 > 0:35:09I'm really not seeing a lot that needs to be done here.
0:35:09 > 0:35:12But hold on, there is more.
0:35:12 > 0:35:13Wow!
0:35:13 > 0:35:18The one huge bonus with any central London pad is having outside space.
0:35:18 > 0:35:21Now, I know I go on about this all the time,
0:35:21 > 0:35:24but for me it just ticks all the boxes.
0:35:24 > 0:35:27Now, I know it's not a massive area out here,
0:35:27 > 0:35:29but imagine a few potted plants.
0:35:29 > 0:35:32It's just somewhere to get fresh air and call your own.
0:35:32 > 0:35:35Imagine what it would be like at night time out here.
0:35:38 > 0:35:42A city worker would snap this one up as the perfect crash pad.
0:35:42 > 0:35:46Or if you are the kind of person that invests in bricks and mortar
0:35:46 > 0:35:47rather than stocks and shares,
0:35:47 > 0:35:52I reckon there could be a healthy profit in renting this one out.
0:35:52 > 0:35:56Now, this flat's location means that it is a landlord's dream.
0:35:56 > 0:35:59You'd have no trouble renting this out for the premium price.
0:35:59 > 0:36:02If you got it for anywhere near the top end of the guide price
0:36:02 > 0:36:04of 250,000,
0:36:04 > 0:36:08spend about £10,000 on it to get it up to standard.
0:36:08 > 0:36:14Rent it for 1,300 a month, then that would mean a 6% yield.
0:36:14 > 0:36:17Wow, the numbers really do stack up for me.
0:36:17 > 0:36:20# Because loving, girl
0:36:20 > 0:36:25# Is all I can do. #
0:36:25 > 0:36:29We asked a local estate agent for his thoughts on the property,
0:36:29 > 0:36:31which went to auction with a guide price
0:36:31 > 0:36:34of 225,000 to 250,000.
0:36:36 > 0:36:41This unit appears to have been fairly well built and maintained.
0:36:41 > 0:36:43There is good security.
0:36:43 > 0:36:44There is a video entrance.
0:36:44 > 0:36:48It has an almost European feel to it when you come into the property.
0:36:48 > 0:36:52There is a lift, which is good. Not all buildings have lifts.
0:36:52 > 0:36:55And it's in a good location.
0:36:57 > 0:37:01Once renovated, well, a lick of paint and a bit of sprucing up
0:37:01 > 0:37:06in the kitchen perhaps, what could the property be worth then?
0:37:07 > 0:37:11Renovated to a reasonable standard and put back on the market,
0:37:11 > 0:37:15you would hope to achieve somewhere in the region of £275,000.
0:37:18 > 0:37:20What about the rental market?
0:37:20 > 0:37:23Does he agree there is money to be made there?
0:37:24 > 0:37:28Once renovated, this property would rent for between £1,300
0:37:28 > 0:37:31and £1,400 per calendar month.
0:37:32 > 0:37:35If you can get your head around the constant bustle that comes
0:37:35 > 0:37:39with living in a large metropolis and that it will be over a shop,
0:37:39 > 0:37:41then this will be a great one to go for.
0:37:41 > 0:37:44Apart from its obvious investment potential,
0:37:44 > 0:37:48you've got a wonderful space here to do with what you will.
0:37:48 > 0:37:51Let's see who went for it at the auction.
0:37:52 > 0:37:55Lot 147. Do I have an opening bid for this one?
0:37:55 > 0:37:57230?
0:37:58 > 0:38:00230?
0:38:00 > 0:38:01230, thank you. 35?
0:38:01 > 0:38:0335. 240? 240.
0:38:03 > 0:38:0645? 45. 50?
0:38:08 > 0:38:1246, 47? 48, 49? Do I have 50?
0:38:12 > 0:38:14249 then.
0:38:14 > 0:38:17First time at 249.
0:38:17 > 0:38:19Second time at 249.
0:38:19 > 0:38:22250. 51 one of you?
0:38:24 > 0:38:26No? At 250 then, lady's bid.
0:38:26 > 0:38:28First time. Second time.
0:38:28 > 0:38:30Last time at 250, lady here.
0:38:30 > 0:38:32All done at 250,000.
0:38:32 > 0:38:36Lot 147 sold to you, madam. Well done.
0:38:37 > 0:38:42And beaming her way to that successful bid of 250,000
0:38:42 > 0:38:43was Shang Ye.
0:38:43 > 0:38:46She moved to London from China three years ago
0:38:46 > 0:38:51and works as a product consultant for a financial firm in the city.
0:38:51 > 0:38:52# Take me down to the paradise city
0:38:52 > 0:38:56# Where the grass is green And the girls are pretty
0:38:56 > 0:39:01# Oh, won't you please take me home? #
0:39:04 > 0:39:06- Shang Ye, congratulations. - Thank you.
0:39:06 > 0:39:08That was a beautiful smile on that auction footage.
0:39:08 > 0:39:10You looked so happy.
0:39:10 > 0:39:14Yeah, I was so excited after I got this flat.
0:39:14 > 0:39:18What was it like for you on auction day, bidding in the auction room?
0:39:18 > 0:39:23Actually, it was my first time to go to the auction. I never did before.
0:39:23 > 0:39:28So, I watched some video on the internet.
0:39:28 > 0:39:31Of course, I watched Homes Under The Hammer then.
0:39:31 > 0:39:33I practised how to raise the hand.
0:39:33 > 0:39:38To know the general idea about what auction is
0:39:38 > 0:39:40and what I need to do in auction.
0:39:40 > 0:39:44- So, our programme helped you and inspired you, didn't it?- Yeah.
0:39:44 > 0:39:47Actually, my colleague recommended it to me.
0:39:47 > 0:39:49I watched it in the iPlayer.
0:39:49 > 0:39:52- And here you are now, appearing on Homes Under The Hammer.- Yeah!
0:39:52 > 0:39:56- It's surprising.- It's weird how it's all turned out for you, isn't it?
0:39:56 > 0:39:57Yeah, it is.
0:39:57 > 0:40:00So, is this your first ever property purchase?
0:40:00 > 0:40:02Yes, it is.
0:40:04 > 0:40:07Shang Ye got a great price for her new pad and hopes to move in
0:40:07 > 0:40:09pretty much straight away.
0:40:09 > 0:40:12In fact, there is history between her and this flat.
0:40:12 > 0:40:15It was on the open market before going to auction
0:40:15 > 0:40:16and she tried to buy it then.
0:40:18 > 0:40:21So, you paid £250,000 at auction.
0:40:21 > 0:40:24Did you make an offer prior to the auction?
0:40:24 > 0:40:28Yes, actually, I did bargain a little bit before the auction.
0:40:28 > 0:40:33Because this flat was asking for 320K
0:40:33 > 0:40:35before it went to the auction.
0:40:35 > 0:40:39Then I bargained for 270K.
0:40:39 > 0:40:43Then we don't agree with the money, so...
0:40:43 > 0:40:47So you offered 270,000, you wanted it that much.
0:40:47 > 0:40:48- Yep.- They didn't agree to that.- Yep.
0:40:48 > 0:40:52- So it went to auction and you got it for 250!- Yeah, right!
0:40:52 > 0:40:55- That is a great deal, isn't it? - Thank you.
0:40:55 > 0:40:58You are obviously thrilled to bits that you got this for 250,000.
0:40:58 > 0:41:02Yep, that's right. I am so happy about that.
0:41:02 > 0:41:05And she has every right to be happy
0:41:05 > 0:41:09because not only has she saved £20,000 on the purchase price,
0:41:09 > 0:41:13but has also made a big saving on stamp duty, too.
0:41:13 > 0:41:17But, as with so many central London flats, there may be a pretty high service charge
0:41:17 > 0:41:21for Shang Ye to factor into her budget.
0:41:21 > 0:41:24Is there a service charge attached to this property?
0:41:24 > 0:41:32Yes. Actually, I pay about 2,400 service charge fee for a year.
0:41:32 > 0:41:34- Woo!- Yeah, it's a little bit expensive,
0:41:34 > 0:41:37but everything included in it -
0:41:37 > 0:41:43the lift, maintenance and also insurance as well.
0:41:43 > 0:41:47That is a lot of money, isn't it? 2,400 a year, and it can go up.
0:41:47 > 0:41:50Yeah, it is a little bit high for me,
0:41:50 > 0:41:54but I still want to do it because, yeah, this place is lovely.
0:41:54 > 0:41:58- So, Shang Ye, are you planning on doing much work to this flat?- Yes.
0:41:58 > 0:42:00Actually, I'm planning to change the floor
0:42:00 > 0:42:04and also I will change the bathroom
0:42:04 > 0:42:08- and also change the kitchen worktop. - Yeah.
0:42:08 > 0:42:11It's getting a little bit old. Yep, that's what I want to do.
0:42:11 > 0:42:14Are you going to change the whole bathroom
0:42:14 > 0:42:16or just the tiles in the bathroom?
0:42:16 > 0:42:21I want to change the basin and the bathtub and also the toilet.
0:42:21 > 0:42:24Really? So you're going to get a complete new bathroom suite?
0:42:24 > 0:42:27- Yeah, that's right.- What's wrong with that one? It's fine.
0:42:27 > 0:42:32Yeah, it looks new and it's OK, but I just want my own stuff there.
0:42:32 > 0:42:35So, what's your budget for the work here?
0:42:35 > 0:42:38I actually don't know my budget yet,
0:42:38 > 0:42:42I'm still looking for builders to get a quote to re-do my flat.
0:42:42 > 0:42:45But give me a ballpark, what are you looking at?
0:42:45 > 0:42:4720,000? 10,000? How much do you think?
0:42:47 > 0:42:51Oh, below 10,000. Definitely below it.
0:42:51 > 0:42:53Are you going to be getting the builders in?
0:42:53 > 0:42:56Yeah, I'm looking for builders now, right.
0:42:56 > 0:42:59That's going to be quite a tall order because a lot of builders
0:42:59 > 0:43:03will probably turn this job down because of the access, won't they?
0:43:03 > 0:43:04Oh, yeah, actually,
0:43:04 > 0:43:08I got several cancel calls for when I made appointment with them.
0:43:08 > 0:43:11They said it's hard for them to get in
0:43:11 > 0:43:13and it's hard to find a parking area,
0:43:13 > 0:43:16so they're not going to do it.
0:43:16 > 0:43:18But I am still looking for builders.
0:43:20 > 0:43:22I thought that might be a problem,
0:43:22 > 0:43:25and another reason why I'd just keep the bathroom.
0:43:25 > 0:43:29Shang Ye hopes to have this feeling like home in less than two months,
0:43:29 > 0:43:31but there is one crucial question remaining.
0:43:31 > 0:43:34Are you going to have a housewarming party?
0:43:34 > 0:43:37Yeah, definitely. After I redo it, yeah.
0:43:37 > 0:43:41I will invite my friends to come over to have a housewarming party.
0:43:41 > 0:43:44- It has been lovely to meet you today. Good luck.- Thank you.
0:43:44 > 0:43:47It will be fantastic to see what you do with this place,
0:43:47 > 0:43:49not that it needs that much work.
0:43:49 > 0:43:53- Good luck with that, Shang Ye. - Thank you, Lucy.- Thank you very much.
0:43:53 > 0:43:57Shang Ye's story proves it does pay to go to auction.
0:43:57 > 0:43:59Look how much she saved.
0:43:59 > 0:44:03She's got a great place here to live in and it is just so central.
0:44:03 > 0:44:06Although that service charge is very high.
0:44:06 > 0:44:08But city life doesn't come cheap.
0:44:08 > 0:44:10Let's just hope her building quotes do.
0:44:10 > 0:44:14You can find out how she gets on later in the programme.
0:44:17 > 0:44:21Well, time has simply flown by.
0:44:21 > 0:44:24So, have our new purchases made good progress
0:44:24 > 0:44:27or has the ticking clock been their enemy?
0:44:27 > 0:44:30Let's go back and find out what's happened.
0:44:31 > 0:44:34Back now to Seaham, in County Durham,
0:44:34 > 0:44:37to check on progress at this two-bedroom mid-terrace bungalow,
0:44:37 > 0:44:42which Graham and Tracey bought at auction for £50,000.
0:44:42 > 0:44:44They had a budget of just five grand
0:44:44 > 0:44:46and 10 to 12 weeks to complete the work,
0:44:46 > 0:44:51including addressing the rather alarming damp patches on the walls.
0:44:51 > 0:44:54But these budding property tycoons already had a queue of people
0:44:54 > 0:44:56waiting to rent the bungalow.
0:44:56 > 0:44:59We just rented our last property out
0:44:59 > 0:45:02and we are inundated with people asking us for properties.
0:45:02 > 0:45:07- How inundated?- I must have 10 or 15 people interested
0:45:07 > 0:45:09- in one property from us.- Wow.
0:45:09 > 0:45:11So, you're going to get 15 more properties then.
0:45:11 > 0:45:14- One every year for ten years, that was the plan.- Really?
0:45:14 > 0:45:18- But we've actually done three in two. - Two year now.
0:45:19 > 0:45:23Three months after our first visit, we're back to see if Tracey,
0:45:23 > 0:45:26who's a nurse, and Graham, who works at the local car plant,
0:45:26 > 0:45:29have had their foot to the floor or whether the renovation
0:45:29 > 0:45:31has run out of gas.
0:45:31 > 0:45:33# Get out of my dreams
0:45:33 > 0:45:35# Get in the back seat, baby
0:45:35 > 0:45:37# Get into my car
0:45:37 > 0:45:40# Beep, beep, yeah!
0:45:40 > 0:45:42# Get out of my mind
0:45:42 > 0:45:44# Get out of my mind
0:45:44 > 0:45:46# Get into my life
0:45:46 > 0:45:48# Oh, oh, oh, oh!
0:45:48 > 0:45:50# Oh, I said "Hey..." Hey!
0:45:50 > 0:45:52"..you..." You!
0:45:52 > 0:45:54# Get into my car. #
0:45:57 > 0:46:00Well, they've reached their final destination,
0:46:00 > 0:46:03but it hasn't been a completely smooth drive.
0:46:03 > 0:46:06The damp problem turned out to be even worse than they thought.
0:46:06 > 0:46:13There was more dampness in more areas than was initially visible.
0:46:13 > 0:46:18It ended up being extra work for their builder who had to prevent
0:46:18 > 0:46:21the water coming in, but with that out of the way,
0:46:21 > 0:46:25Graham and Tracey could get on with the renovation proper.
0:46:25 > 0:46:27As you can see, the biggest change is putting in the bathroom.
0:46:27 > 0:46:30We removed the old bathroom suite,
0:46:30 > 0:46:32re-plumbed it from the stop tap through to the tank.
0:46:32 > 0:46:33The tiles were re-tiled.
0:46:33 > 0:46:35The walls were plastered and it has come up
0:46:35 > 0:46:37very well the way it is at the moment.
0:46:37 > 0:46:40The damp had also affected the kitchen,
0:46:40 > 0:46:44so that has had a major overhaul, too.
0:46:45 > 0:46:49We have put in some new kitchen units,
0:46:49 > 0:46:51revamped the old ones,
0:46:51 > 0:46:55new appliances, re-plastered some of the walls
0:46:55 > 0:46:58where the tiles had to come off to have the dampness sorted
0:46:58 > 0:47:01and used the tiles to revamp this side of the kitchen.
0:47:01 > 0:47:05The existing floor was fine, so we didn't have to change that at all.
0:47:08 > 0:47:12Everything was going swimmingly in their newly damp-free bungalow.
0:47:12 > 0:47:15The roof was repaired and bedrooms redecorated.
0:47:15 > 0:47:18But then the weather played a rather cruel trick.
0:47:19 > 0:47:23When everything was OK, we had some high winds and it took tiles off.
0:47:23 > 0:47:27After we decorated the two-bedrooms, we had water come in.
0:47:27 > 0:47:29So we had to redecorate them again and get the roof repaired.
0:47:31 > 0:47:35There was a bit of re-plumbing to do, but the existing boiler checked out OK,
0:47:35 > 0:47:40so Graham and Tracey saved on the cost of replacing that.
0:47:40 > 0:47:43So, what with the extra work to fix the damp problem,
0:47:43 > 0:47:47where does that leave them on the budget front?
0:47:47 > 0:47:49Our original budget was between £4,000 and £5,000
0:47:49 > 0:47:51and we are well under that.
0:47:53 > 0:47:55That's including everything.
0:47:55 > 0:47:59I just finished the accounts off yesterday.
0:47:59 > 0:48:01No wonder Graham is smiling because,
0:48:01 > 0:48:04including the £50,000 purchase price,
0:48:04 > 0:48:07that makes a total outlay of under 55,000
0:48:07 > 0:48:10on this two-bedroom bungalow.
0:48:10 > 0:48:12Where did they make the savings?
0:48:12 > 0:48:15A lot of the work was done by ourselves.
0:48:15 > 0:48:17At the time, we got a very good deal on the kitchen.
0:48:17 > 0:48:20There was a special offer on,
0:48:20 > 0:48:23so we got a very good deal on the kitchen and the bathroom.
0:48:23 > 0:48:24Yeah, got an excellent deal.
0:48:24 > 0:48:27That's where most of the savings has been.
0:48:29 > 0:48:31That explains it then.
0:48:31 > 0:48:33But just how much work did Graham put in
0:48:33 > 0:48:38on top of his full-time job working nights at the car plant?
0:48:38 > 0:48:42The only day I have off is Thursday, that's my planned day off.
0:48:42 > 0:48:44But most of the days I do it before I go to work
0:48:44 > 0:48:47or when I come in from work.
0:48:47 > 0:48:49It's normally 10, 12 hour shift on Saturdays and Sundays
0:48:49 > 0:48:51when I come.
0:48:53 > 0:48:56Well, that's dedication for you.
0:48:56 > 0:48:58We asked two local estate agents
0:48:58 > 0:49:01for their take on this renovated bungalow.
0:49:01 > 0:49:04The first impressions of the property are very good.
0:49:04 > 0:49:05On the initial visit
0:49:05 > 0:49:08to the property, there was some damp work that needed to be done.
0:49:08 > 0:49:10That has been done.
0:49:10 > 0:49:13As well as that, we recommended a decorative overhaul.
0:49:13 > 0:49:14That's all been done, as well.
0:49:14 > 0:49:16I think it's a very smart property.
0:49:16 > 0:49:20I think it has been improved quite tastefully.
0:49:20 > 0:49:22And it's ready for someone to move into.
0:49:22 > 0:49:26And you should have no problem getting a potential buyer or renter.
0:49:28 > 0:49:31Both estate agents agree that the property would sell
0:49:31 > 0:49:32for £70,000.
0:49:32 > 0:49:36That's a bit lower than Graham and Tracey hoped for, but could
0:49:36 > 0:49:40still mean a gross profit before fees and expenses of around 15,000.
0:49:42 > 0:49:45But the couple already have a tenant lined up,
0:49:45 > 0:49:50so what do the estate agents think is a reasonable rental valuation?
0:49:50 > 0:49:56I think a potential tenant would pay anywhere between £400 to £425
0:49:56 > 0:49:57per calendar month.
0:49:57 > 0:50:00In the rental market, I'd recommend a rental valuation
0:50:00 > 0:50:04of £425 to £450 per calendar month.
0:50:04 > 0:50:08The tenant that's moving in is paying 450 a month.
0:50:08 > 0:50:11That is what we were expecting right from the beginning.
0:50:11 > 0:50:14We thought sale wise it might have been slightly more.
0:50:14 > 0:50:18Graham and Tracey are in line for a yield of around the 10% mark.
0:50:18 > 0:50:21But they are not taking their foot off the pedal.
0:50:21 > 0:50:24They hope to tackle two more properties in the year ahead.
0:50:24 > 0:50:28What advice do they have for would-be auction goers?
0:50:28 > 0:50:32- Go for it.- It's not a problem. If you're thinking about it, try it.
0:50:32 > 0:50:34It's not as hard as people make it out to be.
0:50:34 > 0:50:36We should have started ten year ago.
0:50:40 > 0:50:44Back in London to check on progress at this one-bed flat,
0:50:44 > 0:50:47which Shang Ye bought at auction for 250,000.
0:50:47 > 0:50:52It was on the open market before the auction for 320,000.
0:50:52 > 0:50:54Shang Ye did put in a cheeky offer at that stage.
0:50:54 > 0:50:59This flat was asking for 320K
0:50:59 > 0:51:02before it went to the auction.
0:51:02 > 0:51:05Then I bargained for 270K.
0:51:05 > 0:51:08Then we don't agree with the money.
0:51:08 > 0:51:13So you offered 270,000, you wanted it that much?
0:51:13 > 0:51:16- Yeah.- They didn't agree to that. - Yeah.- So it went to auction
0:51:16 > 0:51:20- and you got it for 250!- Yeah, right!
0:51:20 > 0:51:22- That is a great deal.- Thank you.
0:51:22 > 0:51:25Nothing much needed doing to the flat,
0:51:25 > 0:51:27but Shang Ye had plans to replace the flooring,
0:51:27 > 0:51:29redecorate,
0:51:29 > 0:51:32put in new kitchen worktops and fit a new bathroom suite.
0:51:32 > 0:51:35Shang Ye has been a busy lady working in the city
0:51:35 > 0:51:38and more than two and a half years after our first visit,
0:51:38 > 0:51:41we're back to see what she has done with the flat.
0:51:41 > 0:51:44# Little things that you do
0:51:44 > 0:51:45# Make me glad
0:51:45 > 0:51:49# I'm in love with you. Little things...
0:51:49 > 0:51:53Well, there is no denying that Shang Ye has made the flat her own.
0:51:53 > 0:51:55The flooring has been replaced
0:51:55 > 0:51:58and the yellow paint job is a thing of the past.
0:51:58 > 0:52:02But is it just me or is the kitchen exactly the same as before?
0:52:02 > 0:52:05Actually, I wanted to change the worktop,
0:52:05 > 0:52:10but it's too much work and the decorator told me,
0:52:10 > 0:52:14"It's fine. It's good quality, it's just not very good-looking."
0:52:14 > 0:52:16So I decided, "Well, it's fine."
0:52:16 > 0:52:19I don't cook much, so it's fine for me.
0:52:19 > 0:52:22I didn't do anything to the kitchen, to be honest.
0:52:23 > 0:52:26And the bathroom looks pretty similar, too.
0:52:28 > 0:52:30I changed the toilet and changed some taps
0:52:30 > 0:52:35and also I put some sticker paper in the window
0:52:35 > 0:52:38to cover the sides.
0:52:38 > 0:52:42Shang Ye had the work done on the flat pretty soon after
0:52:42 > 0:52:46moving in, but how much did she spend on updating the place?
0:52:47 > 0:52:535,000? Maybe? I'm not very sure, it's a long time ago.
0:52:53 > 0:52:57Yeah. Maybe 5,000, I don't remember.
0:52:57 > 0:53:00Shang Ye discovered that while she has access
0:53:00 > 0:53:02to the balcony from her flat, according to the terms
0:53:02 > 0:53:05of her leasehold, she doesn't actually own it.
0:53:05 > 0:53:07That was a great disappointment.
0:53:07 > 0:53:10But she has made a very comfortable home for herself here,
0:53:10 > 0:53:12with work just a ten-minute walk away.
0:53:12 > 0:53:15You might think she was all settled,
0:53:15 > 0:53:17but, actually, despite the convenience,
0:53:17 > 0:53:19she's considering a different way of life,
0:53:19 > 0:53:24away from the city's beating heart, if she can find her dream property.
0:53:24 > 0:53:28Actually, I want a house, like, in the countryside.
0:53:28 > 0:53:32Have a garden, and near a river, lots of sun, lots of windows,
0:53:32 > 0:53:35then I can get sunshine, natural light.
0:53:37 > 0:53:41Sounds like this city girl is ready for some country living,
0:53:41 > 0:53:43but perhaps it will come to light sooner than she thinks.
0:53:43 > 0:53:46I think Shang Ye has been very clever indeed here.
0:53:46 > 0:53:50She snapped the flat up at auction for 250,000,
0:53:50 > 0:53:52spent five grand sprucing it up,
0:53:52 > 0:53:57making her total outlay 255,000.
0:53:57 > 0:53:59We asked along two local estate agents
0:53:59 > 0:54:03to see what they think of this city centre flat now.
0:54:03 > 0:54:07The location would sell this property.
0:54:07 > 0:54:08Certainly.
0:54:08 > 0:54:10It would not be difficult
0:54:10 > 0:54:11to find a buyer for a property.
0:54:11 > 0:54:14It's in a very good location.
0:54:14 > 0:54:17It's very well placed for the Tube and for work in the city,
0:54:17 > 0:54:19and I think there'll be a demand for it.
0:54:19 > 0:54:22OK, so if selling should be straightforward,
0:54:22 > 0:54:25what about renting the flat out?
0:54:25 > 0:54:29It would rent quicker than it would sell, just due to the process
0:54:29 > 0:54:31and the supply and demand.
0:54:31 > 0:54:33Renting would be extremely easy.
0:54:33 > 0:54:37For rentals, I think a bit more smarting up might be required.
0:54:37 > 0:54:39But I don't think you need to do too much to it
0:54:39 > 0:54:41because of its location, mainly.
0:54:41 > 0:54:46Shang Ye bought the flat for 250,000 and spent about five grand
0:54:46 > 0:54:51doing cosmetic changes, making her total outlay 255,000.
0:54:51 > 0:54:55So, what resell value would they give the property now?
0:54:55 > 0:54:59If we were to market this property for sale,
0:54:59 > 0:55:04we would expect to be putting it on in the region of £365,000,
0:55:04 > 0:55:07just over 350, somewhere in that range.
0:55:07 > 0:55:09If this property were to be sold at the moment,
0:55:09 > 0:55:12I would put it on the market at 350,000 or perhaps a touch more.
0:55:12 > 0:55:18Oh, great! It is much higher than the price I bought two years ago.
0:55:18 > 0:55:20Yep.
0:55:20 > 0:55:25A sale at £350,000 or even £365,000
0:55:25 > 0:55:27would give Shang Ye a pre-tax profit
0:55:27 > 0:55:32of between 95,000 and 110,000, which is just amazing!
0:55:32 > 0:55:35What about putting the flat on the rental market?
0:55:35 > 0:55:38If we were to put the property up for rent,
0:55:38 > 0:55:42it would achieve in the region of £1,600 per calendar month.
0:55:42 > 0:55:45I imagine this property would achieve rent per calendar month
0:55:45 > 0:55:46in the origin of £1,800.
0:55:48 > 0:55:50Wow.
0:55:50 > 0:55:52That's really high.
0:55:52 > 0:55:54Is it because the location is good?
0:55:54 > 0:55:58Absolutely. Location here is key.
0:55:58 > 0:56:01And that is why Shang Ye could be looking at a yield
0:56:01 > 0:56:07of between 7.5 and 8.5% before fees and expenses.
0:56:07 > 0:56:11So, do those figures bring her dream of a bright and airy house
0:56:11 > 0:56:12in the country any closer?
0:56:12 > 0:56:17For now, I want to stay here cos it's really convenient.
0:56:17 > 0:56:19It's a good flat to live.
0:56:19 > 0:56:22Maybe in the future, if I find a nice house
0:56:22 > 0:56:27outside of London, I would consider to rent this flat out.
0:56:27 > 0:56:32Because it is a convenient place for the people who work in the City
0:56:32 > 0:56:37to stay. Yep, it would be good.
0:56:37 > 0:56:40# Every little thing she does is magic
0:56:40 > 0:56:46# Now I know my love for her goes on. #
0:56:48 > 0:56:52Whether it is a bungalow, a house or a mansion, we will be there
0:56:52 > 0:56:56to see what happens to it next time on Homes Under The Hammer.
0:56:56 > 0:56:59- So make sure you join us soon. Goodbye.- Goodbye.
0:57:02 > 0:57:05Subtitles by Red Bee Media Ltd