0:00:02 > 0:00:04Hello. If you want to buy property at an auction,
0:00:04 > 0:00:05you have to do it at the right price,
0:00:05 > 0:00:07- but that's not always easy to do.- No.
0:00:07 > 0:00:10How do you know if the market is rising or falling?
0:00:10 > 0:00:13Well, one only way to find out what the demand is like
0:00:13 > 0:00:16is to pop down to your local property auction.
0:00:41 > 0:00:44Well, auctions are really exciting
0:00:44 > 0:00:46and you can be easily tempted to buy.
0:00:46 > 0:00:50But how to guarantee success? Well, do your homework first.
0:00:50 > 0:00:54So let's find out which properties created a buzz on today's show.
0:00:55 > 0:00:59There's lots to see in this Hartlepool property,
0:00:59 > 0:01:01but keep your eyes peeled.
0:01:01 > 0:01:04Look at that! I almost missed that.
0:01:05 > 0:01:10You'll need more than a wet weekend to sort out this Chatham house.
0:01:10 > 0:01:14Now this wallpaper, look, is actually so wet.
0:01:15 > 0:01:18And in Blurton, Stoke-on-Trent,
0:01:18 > 0:01:21there's a one bedroom flat that's rather compact.
0:01:21 > 0:01:23But looking around, not in a bad state,
0:01:23 > 0:01:25and a couple of quite nice features.
0:01:28 > 0:01:30All of these properties went to auction,
0:01:30 > 0:01:33and we'll find out who bought them and what they paid,
0:01:33 > 0:01:35- when they went under the hammer. - Sold.
0:01:46 > 0:01:50Today I'm in Hartlepool, in the north-east of England.
0:01:50 > 0:01:55Formerly heavy on industry, such as steelmaking and boatbuilding.
0:01:55 > 0:01:57The place fell into decline.
0:01:57 > 0:02:00But, nowadays, the docks have been rejuvenated,
0:02:00 > 0:02:04to create this incredible marina, with shops, restaurants,
0:02:04 > 0:02:08it was also the host of the 2010 Tall Ships Race.
0:02:08 > 0:02:11# Sail away, sail away, sail away... #
0:02:11 > 0:02:17But lovely as this area is now, it is property that floats my boat.
0:02:17 > 0:02:19Well, not far from the port
0:02:19 > 0:02:22and walking distance from the town centre and railway station
0:02:22 > 0:02:24is the property I'm here to see.
0:02:24 > 0:02:28Two-bedroom mid-terrace, at a guide price of £25,000 plus,
0:02:28 > 0:02:30let's take a look.
0:02:30 > 0:02:33Looking at it at the front isn't all that encouraging.
0:02:33 > 0:02:35It's got double glazing in the windows
0:02:35 > 0:02:37that haven't been boarded up,
0:02:37 > 0:02:39and a somewhat dated pebbledash finish.
0:02:39 > 0:02:41But the most positive view is across the road,
0:02:41 > 0:02:43where new houses have been built.
0:02:43 > 0:02:47So perhaps this is an area that's going places.
0:02:47 > 0:02:51# Cos we're going places
0:02:51 > 0:02:53# Never thought we could... #
0:02:53 > 0:02:55You pretty much know what to expect
0:02:55 > 0:02:57in these kind of terraced properties.
0:02:57 > 0:02:59Let's see if that's the case here.
0:02:59 > 0:03:01Oh. Oh, no, maybe not.
0:03:01 > 0:03:04Look at that coving. And the detailing.
0:03:04 > 0:03:07Very grand, indeed. Gosh, fantastic.
0:03:07 > 0:03:11But through from the entrance there into your rear living room area.
0:03:11 > 0:03:15Not a bad sized space. The kitchen going off it, there.
0:03:15 > 0:03:17Then through to your front living room.
0:03:17 > 0:03:20Obviously it's been knocked through to create a really nice space.
0:03:20 > 0:03:22The window is boarded up at the moment,
0:03:22 > 0:03:25but take that off, replace it with glass
0:03:25 > 0:03:27and lots of light coming in here.
0:03:27 > 0:03:29Open fire, which is always good.
0:03:29 > 0:03:33I would like to see some kind of a fire surround on that.
0:03:33 > 0:03:35Look at that!
0:03:35 > 0:03:40I almost missed that. What a fantastic ceiling rose!
0:03:40 > 0:03:44It's the sort of thing you'd expect in a country house.
0:03:44 > 0:03:49Not a little terrace in Hartlepool. Wow. Right then, change of plan.
0:03:49 > 0:03:52A big fire surround, enough space for the invite for the local gentry
0:03:52 > 0:03:56to their Christmas ball, absolutely superb.
0:03:56 > 0:04:00But, joking aside, really nice original feature.
0:04:00 > 0:04:02Through to the rear up of the property, not so original,
0:04:02 > 0:04:05but in not bad nick. Your kitchen,
0:04:05 > 0:04:08this is an extension to the property added on at a later stage.
0:04:08 > 0:04:10It's not huge,
0:04:10 > 0:04:13the layout is probably making the best use of space.
0:04:13 > 0:04:15The units don't look too old,
0:04:15 > 0:04:17but you probably want to think about replacing those,
0:04:17 > 0:04:20and obviously do the window at the same time.
0:04:20 > 0:04:24But, all in all, a little house with not delusions of grandeur,
0:04:24 > 0:04:26but aspirations to it.
0:04:26 > 0:04:28It's never going to be a country house
0:04:28 > 0:04:33situated in the heart of Hartlepool, but period features are definitely
0:04:33 > 0:04:36a bonus and something that tenants and particularly housebuyers like.
0:04:36 > 0:04:41You may have noticed that there are no radiators or boiler here,
0:04:41 > 0:04:46but they've just been removed for safekeeping, so, another bonus.
0:04:46 > 0:04:48What does the rest of this property have to offer?
0:04:48 > 0:04:51So upstairs and that's a bathroom, that's a nice surprise.
0:04:51 > 0:04:53A really good size,
0:04:53 > 0:04:57although I do not know what on earth is going on with this step.
0:04:57 > 0:04:58As you can see, that is not good, at all
0:04:58 > 0:05:00and it is a very bad trip hazard.
0:05:01 > 0:05:04Maybe take out whatever this is to get that right,
0:05:04 > 0:05:07because it really is not right at all.
0:05:07 > 0:05:10But a good sized space, lots of light coming in again.
0:05:10 > 0:05:11Being in the new extension.
0:05:11 > 0:05:14Up a few more stairs, you've got your two bedrooms.
0:05:14 > 0:05:16You know what, I can't resist it,
0:05:16 > 0:05:21I have got to find out what this is like.
0:05:23 > 0:05:26Oh, look at that.
0:05:26 > 0:05:31Original and beautiful.
0:05:32 > 0:05:34Are there any more hidden gems?
0:05:34 > 0:05:37Well, no, not that I can see.
0:05:37 > 0:05:39The two bedrooms are a good size,
0:05:39 > 0:05:43and there are no complaints about the bathroom.
0:05:44 > 0:05:47But there is quite a large amount of work to tackle
0:05:47 > 0:05:52to get this place to step up to the mark, both inside and out.
0:05:52 > 0:05:54Come out of the rear of the property
0:05:54 > 0:05:56and you find yourself in this little courtyard.
0:05:56 > 0:05:59Really nice and useful to have a bit of outside space.
0:05:59 > 0:06:01It needs tidying up, but apart from that,
0:06:01 > 0:06:03nothing particularly to worry about.
0:06:03 > 0:06:07Here you can also see that the whole of the rear of the property
0:06:07 > 0:06:09is, in fact, a fairly recently built extension.
0:06:09 > 0:06:11You can see the difference in the bricks.
0:06:11 > 0:06:13But I'm more concerned about a couple of things.
0:06:13 > 0:06:17First of all, this. It's a wooden beam over the window.
0:06:17 > 0:06:19That should actually be made of concrete or metal.
0:06:19 > 0:06:22As you can see, if you look above it, there is a bit of a crack,
0:06:22 > 0:06:25probably because this has started to rot and sink.
0:06:25 > 0:06:28That's not good, because before long, the window will crack,
0:06:28 > 0:06:30and eventually that'll fall down.
0:06:30 > 0:06:33Another thing which could be causing all sorts of problems is this,
0:06:33 > 0:06:37a classic case of a stitch in time saves nine, here.
0:06:37 > 0:06:40What has happened is the downpipe has come off here,
0:06:40 > 0:06:44and water, for whatever length of time, has been pouring down
0:06:44 > 0:06:47from not only the roof but from these pipes,
0:06:47 > 0:06:49from the sinks upstairs.
0:06:49 > 0:06:51Down this wall, that's going to be damp and horrible.
0:06:51 > 0:06:54It's probably going to have got into the kitchen
0:06:54 > 0:06:56and it could even be affecting the foundations.
0:06:56 > 0:06:59So that needs to be sorted out,
0:06:59 > 0:07:03and so do the potential problems down there.
0:07:03 > 0:07:07That's another thing to investigate.
0:07:07 > 0:07:10And, generally, this back area is a little disappointing.
0:07:10 > 0:07:13There is access at the rear, but the extension
0:07:13 > 0:07:15has taken what little yard area there was,
0:07:15 > 0:07:17making it less attractive as a resale option.
0:07:17 > 0:07:22So, for me, it has got rental potential written all over it.
0:07:22 > 0:07:28But what does a local estate agent make of this small house
0:07:28 > 0:07:30with big aspirations?
0:07:31 > 0:07:33It is typical for this area.
0:07:33 > 0:07:37A terraced property, obviously this one is in poor condition,
0:07:37 > 0:07:39and needs quite a lot of work doing to it.
0:07:39 > 0:07:42It needs decorating, fully.
0:07:42 > 0:07:44The double glazing seems to be OK,
0:07:44 > 0:07:46but obviously some repairs need doing to that.
0:07:46 > 0:07:48Yes, there is a fair amount of work
0:07:48 > 0:07:51and it's in an area that, at present,
0:07:51 > 0:07:53does not have a very high ceiling value.
0:07:53 > 0:07:56So would it be worth investing the time and money on a house
0:07:56 > 0:07:59which was guided at just £25,000 plus.
0:07:59 > 0:08:01Once it's completely renovated,
0:08:01 > 0:08:04I would suggest somewhere around the £45,000.
0:08:04 > 0:08:07And rental?
0:08:07 > 0:08:09Unfurnished, I would suggest
0:08:09 > 0:08:11somewhere between £375-£400 per calendar month.
0:08:12 > 0:08:17As I expected, it is not going to make a fortune on the resale market.
0:08:17 > 0:08:20But as a rental property, it should work for you, all day long.
0:08:23 > 0:08:27So who's going to take this small house with touches of grandeur
0:08:27 > 0:08:29back to how it was in its glory days?
0:08:29 > 0:08:32Let's go to the auction and find out.
0:08:35 > 0:08:38Lot number 48 is a two bed mid-terrace property,
0:08:38 > 0:08:41most windows do have the UPC frames.
0:08:41 > 0:08:44The radiators and boilers are available but have been removed.
0:08:44 > 0:08:46Who's going to start at 25?
0:08:46 > 0:08:48I need 25 to go. 24?
0:08:48 > 0:08:50I don't have 24?
0:08:51 > 0:08:54One bidder, right at the back, at £24,000.
0:08:54 > 0:08:56Thank you. 25?
0:08:56 > 0:09:0025,000 bid. 26? 26's bid.
0:09:00 > 0:09:0527? 27 bid. 28? Nope. £27,000.
0:09:05 > 0:09:07I'll take 500.
0:09:07 > 0:09:11£27,500 bid. 500 from you?
0:09:11 > 0:09:1228?
0:09:14 > 0:09:1628 bid. And a half?
0:09:16 > 0:09:18The gentleman standing, your last chance,
0:09:18 > 0:09:21I'm going to sell, right-hand side at £28,000.
0:09:21 > 0:09:22Selling it once at 28.
0:09:22 > 0:09:26Selling it for the second time, at £28,000.
0:09:26 > 0:09:30Sold on the right-hand side at £28,000.
0:09:30 > 0:09:34So for £28,000, just £3,000 over the guide price,
0:09:34 > 0:09:38the new owner of the two bedroomed terraced property in Hartlepool
0:09:38 > 0:09:40is local man, Colin.
0:09:40 > 0:09:42He's an electrician by trade,
0:09:42 > 0:09:46so I was intrigued to know what he plans to do with the place.
0:09:46 > 0:09:49- Colin, good to meet you. - Hi there, Andrew.- Congratulations.
0:09:49 > 0:09:51Tell me why you wanted to buy this place.
0:09:51 > 0:09:54I was looking for an investment opportunity.
0:09:54 > 0:09:57I've been looking on the market for some time.
0:09:57 > 0:10:01I've actually tried to get into a couple of properties, to buy,
0:10:01 > 0:10:03but I have always been outbid.
0:10:03 > 0:10:06So when this one came up, it was my lucky day.
0:10:06 > 0:10:08So you've bought it as an investment?
0:10:08 > 0:10:10- Hopefully, yes. An investment. - To do what with?
0:10:10 > 0:10:15- To do up and sell or to keep? - Hopefully I'm going to keep it and try to get on the rental market.
0:10:15 > 0:10:19What experience have you got? Have you done anything like this before?
0:10:19 > 0:10:21I have, albeit I am an electrician by trade.
0:10:21 > 0:10:25I have done properties up with companies,
0:10:25 > 0:10:27so I thought I would have a go myself. See how I can do it.
0:10:27 > 0:10:29- Is this the first one? - This is my first one.
0:10:36 > 0:10:40Colin felt it was time to grasp the nettle and go for it himself.
0:10:40 > 0:10:43He saw property development as a way to fill time
0:10:43 > 0:10:45when his electrical business is less busy.
0:10:45 > 0:10:49He also hopes it will provide some kind of pension provision.
0:10:49 > 0:10:52So, the house itself, then, do you like it as it is?
0:10:52 > 0:10:55Are you going to make any improvements? What is the plan?
0:10:55 > 0:10:57I have had a quick look around,
0:10:57 > 0:11:00and at the moment it is a two-bedroom property.
0:11:00 > 0:11:02One of the front bedrooms is quite a big bedroom.
0:11:02 > 0:11:06I think it has got the potential, if I put another wall in,
0:11:06 > 0:11:08- to make it a three bedroom. - Oh, right.
0:11:08 > 0:11:11A lot of it just once decor. The kitchen is in quite a good state
0:11:11 > 0:11:14It just wants tidying up a bit.
0:11:14 > 0:11:17Basically, I'm going to put new flooring everywhere.
0:11:17 > 0:11:21New bathroom, try and make that something to look at.
0:11:21 > 0:11:24It has got some amazingly grand features for a little house.
0:11:24 > 0:11:28Not least this incredible ceiling rose.
0:11:28 > 0:11:33Yes, I'm going to leave that and try and make that into sort of feature
0:11:33 > 0:11:34by painting it.
0:11:34 > 0:11:37- Do you suppose it had a chandelier at some point?- Possibly.
0:11:37 > 0:11:40- It will do, I will probably put a chandelier into it.- You will?- Yes.
0:11:40 > 0:11:44I love the idea of this little place having a chandelier.
0:11:44 > 0:11:47Why shouldn't it? You know. Maybe a big fireplace, as well.
0:11:47 > 0:11:50There is going to be a new fireplace surround going in.
0:11:50 > 0:11:53Hopefully modernise it a little bit.
0:11:53 > 0:11:56- Budget?- I'm looking to spend approximately £3000-£5000.
0:11:56 > 0:12:01I think £3000-£5000 as a budget is pretty tight.
0:12:01 > 0:12:03Particularly if he goes with his plan to turn it
0:12:03 > 0:12:05into a three-bedroom house.
0:12:05 > 0:12:08He plans to finish the work in just two or three months.
0:12:11 > 0:12:13So who's going to be doing the work?
0:12:13 > 0:12:16Most of it will be mainly myself,
0:12:16 > 0:12:19- but I have also got my nephew who is an apprentice plumber.- Great.
0:12:19 > 0:12:23Hopefully he is going to teach me and I am going to teach him a few tricks.
0:12:23 > 0:12:26- We can both learn along the way. - Has he been doing it for long?
0:12:26 > 0:12:29He is just a young lad, a 17-year-old now,
0:12:29 > 0:12:33so he is in the second year of his apprenticeship.
0:12:33 > 0:12:36Hopefully, he will be able to learn a lot, as well as myself.
0:12:36 > 0:12:38- A good bit of practical experience for him.- It would be.
0:12:38 > 0:12:41Great. Well, listen. Congratulations. Good luck with it.
0:12:41 > 0:12:44- I look forward to seeing how you get on.- Cheers, then. Thanks, now.
0:12:46 > 0:12:49Well, I think Colin has got himself a good little property here,
0:12:49 > 0:12:51but I am concerned about that budget.
0:12:51 > 0:12:53£3000-£5000.
0:12:53 > 0:12:56The thing is, when you start doing up houses,
0:12:56 > 0:12:59there are always things you'll discover needing to be done.
0:12:59 > 0:13:04You can find out if he manages to stick to it, later in the show.
0:13:07 > 0:13:11Consistently ranked one of the most expensive cities in the world,
0:13:11 > 0:13:14London's house prices are unaffordable for many.
0:13:14 > 0:13:17So people are looking elsewhere when it comes to buying property.
0:13:17 > 0:13:19Ever considered Chatham in Kent?
0:13:19 > 0:13:23The average house price here is £160,000.
0:13:23 > 0:13:26It takes over half an hour to travel into central London.
0:13:26 > 0:13:29Worth considering, I'd say.
0:13:29 > 0:13:32An annual rail ticket is over £3,000,
0:13:32 > 0:13:36so you have to take that into account, but when you consider
0:13:36 > 0:13:40you can buy a freehold two-bed house for the price
0:13:40 > 0:13:45of a flat in London, Chatham starts to look very attractive indeed.
0:13:45 > 0:13:47A short walk from the train station,
0:13:47 > 0:13:50and I'm here to see a two-bedroom terraced property.
0:13:50 > 0:13:53The guide? Just £65,000-£70,000.
0:13:53 > 0:13:55It looks quite nice from the outside,
0:13:55 > 0:13:58with this traditional old brick work, like an old cottage.
0:13:58 > 0:14:01Let's see what it's like on the inside, though.
0:14:01 > 0:14:06Well, sadly, it's not bursting with so much character on the inside.
0:14:06 > 0:14:09No beautiful fireplace, artex ceiling.
0:14:09 > 0:14:13It's quite small, but you'd expect that from a cottage.
0:14:13 > 0:14:17A few little old details from the past. That's quite nice.
0:14:17 > 0:14:18Second reception room.
0:14:18 > 0:14:20Oh, dear.
0:14:20 > 0:14:22Damp everywhere. Look at this.
0:14:22 > 0:14:25Wallpaper just peeling off the walls.
0:14:25 > 0:14:28An exposed bit of brickwork here,
0:14:28 > 0:14:30but not of the type I would usually like to see.
0:14:30 > 0:14:37Look at the state of that. Now this wallpaper is, actually, SO wet.
0:14:37 > 0:14:39You can see the waterline along here. Not looking good.
0:14:39 > 0:14:41Certainly get that looked at.
0:14:41 > 0:14:44I'm just wondering where all this damp is coming from.
0:14:44 > 0:14:47Let's hope the kitchen is a bit more promising.
0:14:50 > 0:14:55No such luck. It's just as bad. Black mould and rotten wood work.
0:14:55 > 0:14:59And as for the cooker, well, you'll need to get scrubbing.
0:14:59 > 0:15:03# Grease is the word
0:15:03 > 0:15:05# It's got groove It's got meaning... #
0:15:05 > 0:15:09I'd like to get outside to the garden to check the roof,
0:15:09 > 0:15:11but there's no key available for access.
0:15:11 > 0:15:15I just hope whoever bought this was able to take a look.
0:15:16 > 0:15:23So far, not so great in this house that was guided at £65-£70,000.
0:15:24 > 0:15:26And upstairs it's more of the same.
0:15:28 > 0:15:32In the front bedroom, the walls are so damp that the wallpaper
0:15:32 > 0:15:33is removing itself.
0:15:33 > 0:15:37And it looks like the skirting has made a bid for freedom, too.
0:15:37 > 0:15:40Maybe they have made a pact to run away together.
0:15:42 > 0:15:45MUSIC: "Je T'aime, Moi Non Plus" by Serge Gainsbourg
0:15:45 > 0:15:48Couldn't blame them for wanting to escape the damp,
0:15:48 > 0:15:51but there's no running away for me.
0:15:51 > 0:15:54And here's bedroom number two.
0:15:54 > 0:15:58Not a bad size, but when you take into account the amount of work they've got to do on this place,
0:15:58 > 0:16:01I mean, it literally needs an overhaul.
0:16:01 > 0:16:04You've got peeling wallpaper up here, as well,
0:16:04 > 0:16:07and I'm still looking for that bathroom.
0:16:07 > 0:16:09Found it!
0:16:09 > 0:16:13Well, it's in a right old state.
0:16:13 > 0:16:16On first glance, you would even think there could have been a fire
0:16:16 > 0:16:19because it looks like fire damage, but it's not.
0:16:19 > 0:16:21It's definitely signs of damp.
0:16:21 > 0:16:23It really smells in here.
0:16:23 > 0:16:26It's not even poor ventilation because you can see,
0:16:26 > 0:16:28there's a fan, the window's open.
0:16:28 > 0:16:30It doesn't feel too wet in here
0:16:30 > 0:16:33and I'm looking for water coming through but I can't see any.
0:16:33 > 0:16:36I would get out on to that roof as soon as possible
0:16:36 > 0:16:39to check this place out.
0:16:39 > 0:16:42My other concern is how is bedroom one, the other room,
0:16:42 > 0:16:44going to access this bathroom?
0:16:44 > 0:16:47Time to get the thinking cap on.
0:16:47 > 0:16:50Because access to the only bathroom in the house
0:16:50 > 0:16:53through a bedroom is far from ideal.
0:16:55 > 0:16:58Well, I've thought of a solution.
0:16:58 > 0:17:00What you've got to do is turn the stairs around.
0:17:00 > 0:17:04If you put the stairs along this back wall here,
0:17:04 > 0:17:07that means bedroom one will be able to go into the room,
0:17:07 > 0:17:10walk along this little corridor here into the bathroom
0:17:10 > 0:17:13and bedroom number two will also be able to access the bathroom.
0:17:13 > 0:17:16So it makes both rooms independent,
0:17:16 > 0:17:20both can use the bathroom, and that, I think, is the way forward.
0:17:21 > 0:17:25We invited a local estate agent to come and look at the property
0:17:25 > 0:17:28and get her advice about possible layout changes for the house.
0:17:28 > 0:17:30What would she suggest?
0:17:30 > 0:17:33The new owner has two options and it really depends
0:17:33 > 0:17:35how much they want to spend.
0:17:35 > 0:17:38You have the option of turning the staircase,
0:17:38 > 0:17:42making a through lounge and altering the layout upstairs.
0:17:42 > 0:17:46Or a cheaper option would be to sort of put a corridor in between
0:17:46 > 0:17:49the two bedrooms so both have access to the bathroom.
0:17:50 > 0:17:53And what about the damp in the kitchen and bathroom?
0:17:54 > 0:17:58The kitchen needs some work. It needs a new kitchen, really.
0:17:58 > 0:18:00The bathroom, the whole lot needs looking at
0:18:00 > 0:18:03and perhaps the roof overhauling.
0:18:03 > 0:18:05So after refurbishment works are completed,
0:18:05 > 0:18:10how much rental income could the house generate?
0:18:10 > 0:18:14We would be able to let this out at around £575 per calendar month,
0:18:14 > 0:18:17maybe pushing it to £595 per calendar month.
0:18:19 > 0:18:21And the resale value?
0:18:21 > 0:18:23I think if you did the minimum to it,
0:18:23 > 0:18:27then you are going to be looking round about the £100,000 mark.
0:18:27 > 0:18:30There are damp issues that need addressing here,
0:18:30 > 0:18:33the roof may need repairing or replacing
0:18:33 > 0:18:36and the only upstairs bathroom isn't really working for me.
0:18:36 > 0:18:39So some serious reconfiguring is required.
0:18:39 > 0:18:43Let's see who fancied this challenge as we head to auction.
0:18:43 > 0:18:46Lot 31. Stunning looking little property, there.
0:18:46 > 0:18:48No big problems, I would think.
0:18:48 > 0:18:51Just the two walls to worry about, front and back. Freehold.
0:18:51 > 0:18:54Start me where you will. £65,000?
0:18:54 > 0:18:58Not much for a house, freehold house with vacant possession. 65.
0:18:58 > 0:19:00I'm on the way. And seven, now.
0:19:00 > 0:19:02Do I see? 67, I am looking for.
0:19:02 > 0:19:04Are we all done, 67? Second row back.
0:19:04 > 0:19:0768, 69 and 70. And two. Any of you, three?
0:19:07 > 0:19:1172, can I say? At 70 to the lady.
0:19:11 > 0:19:1372, 74. 74, 76.
0:19:13 > 0:19:1776, 76, and eight.
0:19:17 > 0:19:1977, then?
0:19:19 > 0:19:21Go on, you've kept with it all this time. 77. 77.
0:19:21 > 0:19:2578. 78. 79? No, definitely not.
0:19:25 > 0:19:28At 79 in a fresh place. At 80 now, sir.
0:19:28 > 0:19:3180, may I say, on the right hand side.
0:19:31 > 0:19:33At 80 bid, I have. And 82.
0:19:33 > 0:19:3682, may I say? 81, if you like.
0:19:36 > 0:19:3881, may I hear? 81 and two.
0:19:38 > 0:19:3982.
0:19:39 > 0:19:4382, 82 and three? No.
0:19:43 > 0:19:46At £82,000 bid I have got. 83, I'm looking for.
0:19:46 > 0:19:49Are we all done at £82,000 then I will sell?
0:19:49 > 0:19:52All done for the first time, a second time,
0:19:52 > 0:19:56third and final time at £82,000 on my right hand side.
0:19:57 > 0:19:5982. And the number, please?
0:19:59 > 0:20:01That successful bid of £82,000
0:20:01 > 0:20:05was made by Becky on behalf of her mum, Francis.
0:20:08 > 0:20:12Francis, here on the left, works full-time as a nurse in a care home.
0:20:12 > 0:20:15Her daughter Becky is on hand to help with this property.
0:20:15 > 0:20:18It's the third one Francis and her husband have bought at auction.
0:20:18 > 0:20:21They have two other buy-to-lets in Wales.
0:20:21 > 0:20:25I met Francis and Becky back at the house.
0:20:25 > 0:20:27Girls, congratulations. Well done.
0:20:27 > 0:20:29Tell me about the auction, Francis.
0:20:29 > 0:20:33It was petrifying because there were so many people there.
0:20:33 > 0:20:35I've been to actions before where, you know,
0:20:35 > 0:20:38sometimes there's only a handful of people and you think,
0:20:38 > 0:20:40"Great, you've got a chance here."
0:20:40 > 0:20:42But with so many people there, I thought,
0:20:42 > 0:20:45"Oh, gosh. We haven't got a chance of getting a property here."
0:20:47 > 0:20:50But it seems they stood just as good a chance as anyone else.
0:20:50 > 0:20:53In fact, Francis was interested in bidding on four different properties
0:20:53 > 0:20:56but she made a bit of a boo-boo with this one.
0:20:56 > 0:20:59When it came to viewing it before the auction,
0:20:59 > 0:21:01she only got as far as the front door.
0:21:01 > 0:21:03My husband and I came round.
0:21:03 > 0:21:05We looked through the letterbox and actually,
0:21:05 > 0:21:07the black in the kitchen, we thought it was a hole!
0:21:07 > 0:21:09So in actual fact, that is good.
0:21:09 > 0:21:11It was quite a nice surprise that it wasn't a hole.
0:21:11 > 0:21:14So you didn't even look at this property before you bid for it?
0:21:14 > 0:21:16- No.- You just looked through the letterbox,
0:21:16 > 0:21:20thought it was a black hole and you are quite relieved to see it's actually a kitchen.
0:21:20 > 0:21:22# I'll never know what you find
0:21:22 > 0:21:25# When you open up your letter box tomorrow... #
0:21:25 > 0:21:29It may not be a black hole but the black is damp,
0:21:29 > 0:21:32which could create a black hole in Francis' budget.
0:21:34 > 0:21:38What did you think when you first viewed this poverty?
0:21:38 > 0:21:41It's a little bit disappointing with all the black in the kitchen
0:21:41 > 0:21:44but I don't know if that just looks worse than it is.
0:21:44 > 0:21:48But I don't know, it's not as bad as they one you had in Wales.
0:21:48 > 0:21:52The first one we had was really, really very, very damp.
0:21:53 > 0:21:55So the damp didn't deter Francis.
0:21:55 > 0:21:58She released equity from her two Welsh properties
0:21:58 > 0:22:00to finance the purchase of this house.
0:22:04 > 0:22:07And as if the damp issue wasn't enough, after the auction,
0:22:07 > 0:22:12Francis discovered the house is in a potential flood risk area
0:22:12 > 0:22:16so she had to take out insurance against flooding, her first expense.
0:22:16 > 0:22:20Potential flooding could affect the resale value in future
0:22:20 > 0:22:22but to start with, Francis is planning to rent this house out.
0:22:25 > 0:22:27So what's the grand plan, here?
0:22:27 > 0:22:29What do you intend to do with this house?
0:22:29 > 0:22:31What I would like to do,
0:22:31 > 0:22:35which is different to what my eldest daughter and my husband want to do,
0:22:35 > 0:22:38they just want us to come in, paint it up, do a kitchen
0:22:38 > 0:22:45and a bathroom and just rent it, but I would like to move the stairs
0:22:45 > 0:22:47down to outside the kitchen,
0:22:47 > 0:22:50to go up that way, so that it's one room.
0:22:50 > 0:22:52That's what my idea is,
0:22:52 > 0:22:54because otherwise, you've just got two tiny rooms.
0:22:54 > 0:22:58And then it would be quite nice to put a smaller bathroom upstairs
0:22:58 > 0:23:01and create a third bedroom somehow.
0:23:01 > 0:23:04May not be able to do it but it would be nice.
0:23:04 > 0:23:07I think that would be fantastic, if you can do that.
0:23:07 > 0:23:09If your budget will allow it.
0:23:09 > 0:23:12What sort of budget have you got for this property?
0:23:12 > 0:23:15Well, I thought 8,000.
0:23:15 > 0:23:18If, you know, if we can get it done in six months,
0:23:18 > 0:23:21we might be able to get 8,000.
0:23:21 > 0:23:23We might have to go to 10,000, I don't know.
0:23:24 > 0:23:27If Francis goes ahead to remove a wall,
0:23:27 > 0:23:31change the stairwell and create a corridor and extra bedroom,
0:23:31 > 0:23:34she may find that budget just a little tight.
0:23:35 > 0:23:39And she still needs to get to the bottom of that damp.
0:23:39 > 0:23:41Have you had a chance to get outside and look up on the roof
0:23:41 > 0:23:44and see where that damp is coming from?
0:23:44 > 0:23:47No, because there's no key to the back door.
0:23:47 > 0:23:49The front of the roof looks good
0:23:49 > 0:23:52so I can't believe that the back is going to be that bad.
0:23:53 > 0:23:55Well, fingers crossed.
0:23:55 > 0:23:58At least the house does have central heating and double glazing.
0:24:00 > 0:24:04And Francis has her family on hand to help.
0:24:04 > 0:24:06Becky, how are you going to be involved in this?
0:24:06 > 0:24:08I'm going to have a sledgehammer
0:24:08 > 0:24:11and basically take the stairs down and whatever walls need to go.
0:24:11 > 0:24:15- Together, we're good at demolishing things.- We are quite good.
0:24:15 > 0:24:20- Girls, good luck with this. - Thank you.- Thank you.
0:24:21 > 0:24:23Well, I'm glad to say this investment property
0:24:23 > 0:24:26is closer to home for Francis and she's got Becky
0:24:26 > 0:24:29and the rest of the family to help her turn this place around.
0:24:29 > 0:24:31I've got a few worries, however.
0:24:31 > 0:24:33Will that roof blow the budget
0:24:33 > 0:24:36and will the flood risk wash away any hope of a resale?
0:24:36 > 0:24:40You can find out how the girls get on later in the programme.
0:24:40 > 0:24:44Coming up, just how big is the flat in this Blurton block?
0:24:46 > 0:24:50It might be a bit bigger if the corridors out there weren't so huge.
0:24:51 > 0:24:55Back in Chatham, Becky's sledgehammer has come in handy.
0:24:55 > 0:24:58She came down to help get the chimney breast down
0:24:58 > 0:25:01and that was, you know, a big job.
0:25:02 > 0:25:05But first, we return to Hartlepool
0:25:05 > 0:25:07where Colin's had to tread carefully.
0:25:07 > 0:25:11When we removed flooring, realised that some of it was rotten.
0:25:17 > 0:25:21Earlier, we were in the north-east and seaport of Hartlepool,
0:25:21 > 0:25:25were this two-bedroom mid-terrace house went on for auction.
0:25:25 > 0:25:28It was bought for £28,000
0:25:28 > 0:25:33by local man, Colin. He's an electrician and saw renovating this place
0:25:33 > 0:25:38as a perfect time-filling project for when he was less busy on the electrical front.
0:25:38 > 0:25:41I was looking more for an investment opportunity.
0:25:41 > 0:25:43I've been looking on the market for some time.
0:25:43 > 0:25:47I've actually tried to get into a couple of properties to buy,
0:25:47 > 0:25:49but I've always been outbid.
0:25:49 > 0:25:52- Right.- So when this one came up, it was my lucky day.
0:25:52 > 0:25:55I reckoned he had a good one here
0:25:55 > 0:25:58because the house did have some lovely character features.
0:25:58 > 0:26:00All it needed was cosmetic work
0:26:00 > 0:26:04that Colin thought would only set him back £3,000 to £5,000.
0:26:04 > 0:26:08We returned five months later to see if electrician Colin
0:26:08 > 0:26:10had put the spark back into the place.
0:26:11 > 0:26:14The boarded-up windows have gone,
0:26:14 > 0:26:17and the lintel and stonework have been given a fresh new coat of paint.
0:26:17 > 0:26:20Has Colin freshened up the inside?
0:26:25 > 0:26:27I'd say so!
0:26:27 > 0:26:30The two reception rooms have been redecorated with new flooring added.
0:26:30 > 0:26:33Even with two new double doors separating the living
0:26:33 > 0:26:37and dining areas, the room still feels spacious and light.
0:26:37 > 0:26:40Colin has also added a fireplace which finishes off
0:26:40 > 0:26:42the living room perfectly.
0:26:42 > 0:26:46So, will that serviceable kitchen come up to standard?
0:26:47 > 0:26:50We managed to hang on to the kitchen units,
0:26:50 > 0:26:52which only needed a really good clean.
0:26:52 > 0:26:58I've had to retile, all the electrics put in, cabinet lighting,
0:26:58 > 0:27:01new ceiling lighting and a nice ceramic floor in,
0:27:01 > 0:27:04which I'm really pleased about.
0:27:04 > 0:27:06As they say, if it ain't broke, don't fix it.
0:27:06 > 0:27:09But has anything been fixed upstairs?
0:27:11 > 0:27:14With one eye on the rental market, Colin has gone ahead
0:27:14 > 0:27:17and turned that large front bedroom into two new bedrooms.
0:27:17 > 0:27:19One double and a single.
0:27:21 > 0:27:23The rear bedroom has had a similar makeover
0:27:23 > 0:27:27in the same neutral decor, all clean and fresh.
0:27:28 > 0:27:30Let's hope it's the same for the bathroom.
0:27:34 > 0:27:37So what we've done here, in the bathroom,
0:27:37 > 0:27:40we've had a total refurb.
0:27:40 > 0:27:43We've had a new bathroom suite fitted, new flooring,
0:27:43 > 0:27:48and new tiling to two of the walls
0:27:48 > 0:27:50and I'm really pleased with this room.
0:27:50 > 0:27:53Well, there's a lot to be pleased about with the whole refurb
0:27:53 > 0:27:56but it is not just about what has been added,
0:27:56 > 0:27:59it's also great to see those attractive features
0:27:59 > 0:28:01hauled back to life.
0:28:01 > 0:28:04Colin did most of the work himself with help from the family
0:28:04 > 0:28:06on the decorating side
0:28:06 > 0:28:10and friends with some plastering and joinery work.
0:28:10 > 0:28:13It's been a pain-free experience except for one small problem.
0:28:13 > 0:28:16Downstairs in the rear dining room, when we actually started
0:28:16 > 0:28:20to remove the flooring, we realise some of it had rotten
0:28:20 > 0:28:23so we had to reinstate some of the floor joists
0:28:23 > 0:28:25just to level the floor out.
0:28:25 > 0:28:28But apart from that, no, it was easy going.
0:28:28 > 0:28:32And though the rear yard still isn't anything to get excited about,
0:28:32 > 0:28:38Colin has given the walls a lick of paint and fixed the dodgy drainpipe.
0:28:38 > 0:28:42But he soon found that his time for the job was draining away, too.
0:28:44 > 0:28:47It started off quite easy but then work picked up
0:28:47 > 0:28:51so I had to fit it in and work weekends and evenings
0:28:51 > 0:28:52just to push the project along.
0:28:52 > 0:28:56Colin quickly found that his schedule had expanded
0:28:56 > 0:28:58from three months to four-and-a-half, and the budget,
0:28:58 > 0:29:00that £3,000 to £5,000 spend
0:29:00 > 0:29:06was pushed to 6,000 due to the rotten joists in the dining room.
0:29:06 > 0:29:10Add that six grand spend to his £28,000 purchase price,
0:29:10 > 0:29:15and his total outlay so far is £34,000.
0:29:15 > 0:29:19So, how does he intend to recoup the money?
0:29:19 > 0:29:22Is the plan to rent it out as a long-term investment?
0:29:22 > 0:29:26I've had interest where people want to rent the property,
0:29:26 > 0:29:29but it depends if a buyer comes along and I get offered the right price.
0:29:29 > 0:29:31And possibly, I would sell.
0:29:32 > 0:29:34And that's a cue for two local estate agents
0:29:34 > 0:29:37to come and see Colin's work and give us their thoughts
0:29:37 > 0:29:40on this £34,000 investment.
0:29:42 > 0:29:45I think he's done a good job. It's nice and bright.
0:29:46 > 0:29:50What he's done has been presumably not too expensive
0:29:50 > 0:29:52but it has made a difference to the property.
0:29:52 > 0:29:55I think he's made some fairly significant improvements.
0:29:55 > 0:29:57I quite like the flow of the house.
0:29:57 > 0:29:59A couple of things I do like,
0:29:59 > 0:30:01it is good to have an upstairs bathroom
0:30:01 > 0:30:06off the half-landing and he has converted one of the big bedrooms
0:30:06 > 0:30:10at the front into two bedrooms now, which always helps.
0:30:10 > 0:30:14Has splitting that large bedroom affected the property's value?
0:30:14 > 0:30:18Having divided the front bedroom into two hasn't greatly advanced
0:30:18 > 0:30:23either the sale or rental value, it just makes it more appealing.
0:30:23 > 0:30:26So how do the figures look? First as a rental.
0:30:28 > 0:30:31I would estimate that this property would achieve
0:30:31 > 0:30:35a rent of round about £450 per calendar month.
0:30:35 > 0:30:40I would suggest a rental value of £450 per calendar month.
0:30:42 > 0:30:46450 sounds good, if I can get that.
0:30:46 > 0:30:49I think it is probably a little bit excessive
0:30:49 > 0:30:51but if I could get that, I'd be quite pleased.
0:30:51 > 0:30:54If those rental figures could be achieved,
0:30:54 > 0:30:58Colin would be looking at a possible annual rental yield
0:30:58 > 0:31:00of just under 16%.
0:31:00 > 0:31:03Bearing in mind his total outlay of 34,000,
0:31:03 > 0:31:06would selling it be more attractive?
0:31:07 > 0:31:13I would recommend the vendor puts this on the market at £49,950,
0:31:13 > 0:31:17with a view to achieving round about the £45,000 mark.
0:31:17 > 0:31:22I would suggest it went on the market at £45,000.
0:31:22 > 0:31:27Yeah, 45,000 is probably the top end I'd probably be looking for.
0:31:27 > 0:31:30I'd also be quite pleased if I got 45,000.
0:31:30 > 0:31:34That could give Colin a pre-tax profit of £11,000.
0:31:34 > 0:31:39So, either way, there looks to be some money to be made here.
0:31:42 > 0:31:46But for now, Colin aims to rent this house out,
0:31:46 > 0:31:48until the resale market picks up.
0:31:48 > 0:31:50He has a tenant lined up,
0:31:50 > 0:31:53and will be charging £425 a month,
0:31:53 > 0:31:56a fantastic yield of nearly 15%.
0:31:56 > 0:31:58So, in all, it's not a bad start
0:31:58 > 0:32:03on the renovation and money-making side of his first effort.
0:32:03 > 0:32:07I'm really pleased. Quite happy with the way it's gone.
0:32:07 > 0:32:09I've enjoyed working on the property.
0:32:09 > 0:32:13If I can make some profit on it, it's a win/win situation.
0:32:23 > 0:32:26I'm in Blurton, which literally means,
0:32:26 > 0:32:28"village on a hill".
0:32:28 > 0:32:30Once a small, rural community,
0:32:30 > 0:32:34it's now more a suburb of nearby Stoke-on-Trent.
0:32:34 > 0:32:39But still nestled in the beautiful Staffordshire countryside.
0:32:39 > 0:32:41Distant views,
0:32:41 > 0:32:44country walks, and hedgerows.
0:32:45 > 0:32:49The property's actually located somewhere slightly less rural.
0:32:49 > 0:32:53It's actually on the side of this fairly main road,
0:32:53 > 0:32:55so traffic noise could be an issue.
0:32:55 > 0:33:00In this block of flats, there's 30-odd one-bedroom flats,
0:33:00 > 0:33:02and that's what was up for auction.
0:33:02 > 0:33:03Had a guide price of 30,000 quid.
0:33:03 > 0:33:05Oh, actually being by the side of the road maybe does have
0:33:05 > 0:33:07one or two advantages.
0:33:07 > 0:33:10Good transport links. Let's take a look inside.
0:33:12 > 0:33:15The countryside on your doorstep, and yet only ten minutes' drive
0:33:15 > 0:33:18to both the M6 and the centre of Stoke.
0:33:18 > 0:33:21You certainly can't knock this location.
0:33:21 > 0:33:23Even better news is there's off-street car parking
0:33:23 > 0:33:25round the back,
0:33:25 > 0:33:29where the main security door leading into the block is located.
0:33:29 > 0:33:31So, up to the second floor.
0:33:31 > 0:33:33A really important thing
0:33:33 > 0:33:35when you're looking at buying a flat, particularly,
0:33:35 > 0:33:38is to look at the communal areas.
0:33:38 > 0:33:40Are they in reasonable condition.
0:33:40 > 0:33:43You could end up paying to have them renovated if they're not.
0:33:43 > 0:33:45In this case, they are.
0:33:45 > 0:33:47I have to say, an absolutely massive staircase
0:33:47 > 0:33:49and landing area, there.
0:33:49 > 0:33:51But this is it.
0:33:51 > 0:33:55So, how big is this one-bedroom flat?
0:33:55 > 0:33:58It might be a bit bigger if the corridors out there weren't so huge.
0:33:58 > 0:34:01Basically, it's all along here.
0:34:01 > 0:34:04Bedroom, there. You have your kitchen here.
0:34:04 > 0:34:06Then, working down this way,
0:34:06 > 0:34:09bathroom needs a bit of tender loving care,
0:34:09 > 0:34:10as does most of the flat, actually.
0:34:10 > 0:34:12But it's not a bad size.
0:34:12 > 0:34:14And then through to your living room.
0:34:14 > 0:34:16It's very, well... compact.
0:34:16 > 0:34:20But, looking around, not in a bad state.
0:34:20 > 0:34:23And a couple of quite nice features.
0:34:23 > 0:34:26Look at this fireplace. Marvellous.
0:34:26 > 0:34:30This one-bedroom flat is in really good condition.
0:34:30 > 0:34:32You can move in here as it is.
0:34:32 > 0:34:35But if you spent just a little money,
0:34:35 > 0:34:37the place could become a cracking home.
0:34:37 > 0:34:40It's not the biggest one-bedroom flat I've seen,
0:34:40 > 0:34:43but the layout is right, and there's certainly potential here.
0:34:43 > 0:34:46A new kitchen and bathroom would really make a difference.
0:34:46 > 0:34:51Replacing the single-glazing would help cut down the noise.
0:34:51 > 0:34:54And, although all the windows look out across the road,
0:34:54 > 0:34:57beyond that it's open countryside,
0:34:57 > 0:34:59making quite a pleasant view.
0:34:59 > 0:35:03We invited a local estate agent
0:35:03 > 0:35:04to come and have a look at the flat
0:35:04 > 0:35:06that was guided at £30,000,
0:35:06 > 0:35:08and tell us more about the potential,
0:35:08 > 0:35:10and how it might fit into the local property market.
0:35:14 > 0:35:17The layout of the property is nicely compact,
0:35:17 > 0:35:19and it's quite cosy - it's quite nice.
0:35:19 > 0:35:21After a refurbishment -
0:35:21 > 0:35:24maybe changing the bathroom and the kitchen -
0:35:24 > 0:35:27how much could the flat be worth?
0:35:27 > 0:35:29Once renovated, I believe that this property
0:35:29 > 0:35:31will be worth £45,000.
0:35:31 > 0:35:33And for a buy-to-let investor,
0:35:33 > 0:35:36what rental income could it generate?
0:35:36 > 0:35:40I believe this property would rent for £275 per calendar month.
0:35:41 > 0:35:43I don't know what you think.
0:35:43 > 0:35:45I think this one's a bit of a cracking property.
0:35:45 > 0:35:49Realistic guide price. Good rental potential.
0:35:49 > 0:35:52The flat doesn't need much doing to it. A great one to go for.
0:35:52 > 0:35:55Let's see who agreed when it went under the hammer.
0:35:55 > 0:35:59Lot 41. A second floor one-bedroom flat.
0:35:59 > 0:36:02There's a communal parking area and garden.
0:36:02 > 0:36:03So, lot 41.
0:36:03 > 0:36:04What's this?
0:36:04 > 0:36:0630 to start me?
0:36:06 > 0:36:0825, then? Start me at 25, then, somebody.
0:36:08 > 0:36:0925 bid, thank you.
0:36:09 > 0:36:11At £25,000.
0:36:11 > 0:36:1330 going to say? Bid's at £25,000.
0:36:15 > 0:36:17Got you. £26,000.
0:36:17 > 0:36:19At 27? 27.
0:36:19 > 0:36:2128.
0:36:21 > 0:36:2329. 30?
0:36:25 > 0:36:2630.
0:36:26 > 0:36:2731?
0:36:27 > 0:36:31No? At £30,000. Thank you.
0:36:31 > 0:36:3331.
0:36:33 > 0:36:3432.
0:36:34 > 0:36:3733, sir? 32.5.
0:36:37 > 0:36:3933.
0:36:39 > 0:36:4133.5.
0:36:41 > 0:36:4334? No?
0:36:43 > 0:36:4534, anywhere else?
0:36:45 > 0:36:4634 with you, sir. First bid.
0:36:46 > 0:36:50Another 500 anywhere else?
0:36:50 > 0:36:52At £34,000, then, for the first time.
0:36:52 > 0:36:55At 34,000,
0:36:55 > 0:36:57for the second time.
0:36:57 > 0:36:59Third and final time at £34,000. Are we all done?
0:37:00 > 0:37:03You've all won. Well done.
0:37:03 > 0:37:05That final, successful bid of 34,000
0:37:05 > 0:37:08was made by Paul, who was at the auction
0:37:08 > 0:37:10with his wife, Lynn.
0:37:10 > 0:37:12Paul owns a kitchen and bathroom-fitting company.
0:37:12 > 0:37:16he's also a part-time property developer,
0:37:16 > 0:37:20and for this flat, he travelled some distance.
0:37:20 > 0:37:24MUSIC: "A Long Way Home" by Dwight Yoakam.
0:37:24 > 0:37:26I met up with him back at his new purchase,
0:37:26 > 0:37:29to find out just what it was that appealed to him.
0:37:29 > 0:37:32Paul, great to meet you!
0:37:32 > 0:37:34- Congratulations.- Hi, Martin.
0:37:34 > 0:37:36Tell me why you wanted to buy the flat.
0:37:36 > 0:37:40Primarily, I do buy properties at auction.
0:37:40 > 0:37:43- This is my fifth property... - Oh, great!
0:37:43 > 0:37:46..no, sixth, actually. Sixth properties at auction
0:37:46 > 0:37:49- You've had so many, you lose count. - Yeah, that's it.
0:37:51 > 0:37:55Primarily, we buy up north,
0:37:55 > 0:37:57to get a better return.
0:37:57 > 0:37:58- But don't live here?- No.
0:37:58 > 0:38:00- Where do you live? - Maidenhead, in Berkshire.
0:38:00 > 0:38:04- Good grief. So, quite a long trek away.- Yes.
0:38:04 > 0:38:07Is it that yield factor which has brought you up north?
0:38:07 > 0:38:11It is, because - as you well know - the cost of properties in the south,
0:38:11 > 0:38:15the return you get is nowhere near what you can get
0:38:15 > 0:38:19- further north.- Right. Give me an exact example?
0:38:19 > 0:38:23Well, for what you're purchasing a property up here, I'd have to buy
0:38:23 > 0:38:25four properties up here
0:38:25 > 0:38:28for the price of a property in Maidenhead.
0:38:28 > 0:38:29- So it's four times as much?- Yeah.
0:38:29 > 0:38:32- And you certainly wouldn't get four times as mush rent.- Exactly.
0:38:32 > 0:38:36Does it make managing properties a little more trick?
0:38:36 > 0:38:40I'm quite lucky that I've got my own kitchen and bathroom business.
0:38:40 > 0:38:42Oh, great.
0:38:42 > 0:38:45But obviously, I don't come up here to do all of that.
0:38:45 > 0:38:48I've got a couple of colleagues.
0:38:48 > 0:38:51I've got an excellent carpenter and plumber.
0:38:51 > 0:38:57And electricians, and the rest of the trades I've made contact with,
0:38:57 > 0:38:58since I've been doing this.
0:38:58 > 0:39:00In terms of managing the properties -
0:39:00 > 0:39:02as well as restoring and renovating them -
0:39:02 > 0:39:05do you have an agent locally? Is that how it works?
0:39:05 > 0:39:08I use an agent for finding the tenants,
0:39:08 > 0:39:10and after that look at looking after it ourselves.
0:39:10 > 0:39:15My carpenter/plumber does all the maintenance work, as well.
0:39:15 > 0:39:18I still do some of the work myself.
0:39:18 > 0:39:19I'll come and strip the walls,
0:39:19 > 0:39:23and stick a coat of paint on the walls and ceilings, etcetera.
0:39:23 > 0:39:26But the main fitting of kitchens and bathrooms,
0:39:26 > 0:39:29I leave to my colleague.
0:39:36 > 0:39:38For long distance developer Paul,
0:39:38 > 0:39:41flats are his main target.
0:39:42 > 0:39:45He prefers them to houses, as he can usually obtain a better return
0:39:45 > 0:39:47on the capital he's invested.
0:39:47 > 0:39:49And there's often less work to do.
0:39:49 > 0:39:51So, despite this flat being in pretty good condition,
0:39:51 > 0:39:55will he and his colleague be giving it a spruce up?
0:39:57 > 0:39:59So, what's the plan? What are you going to do?
0:39:59 > 0:40:03Kitchen and bathroom both need doing.
0:40:03 > 0:40:05This is the only ceiling that's got Artex on it.
0:40:05 > 0:40:08So we'll skim that, strip the walls.
0:40:09 > 0:40:12Undecided about the fireplace.
0:40:12 > 0:40:15It's a bit unusual to have in a flat,
0:40:15 > 0:40:16but it's a feature.
0:40:16 > 0:40:17It's not my cup of tea,
0:40:17 > 0:40:21but I think I may end up leaving it.
0:40:21 > 0:40:25And then decorate throughout, so it's ready for renting.
0:40:25 > 0:40:26Being in the trade, how much do you pay
0:40:26 > 0:40:28for a bathroom and a kitchen?
0:40:28 > 0:40:30- Some very good prices.- Come on!
0:40:30 > 0:40:32Spill the beans!
0:40:32 > 0:40:35You know, Martin,
0:40:35 > 0:40:37it's down to the context that you've got,
0:40:37 > 0:40:39and whose arm you can twist.
0:40:39 > 0:40:42So, if you twist somebody's arm particularly strongly,
0:40:42 > 0:40:44how much will the bathroom and kitchen be?
0:40:44 > 0:40:47This time of year, you could get some excellent deals.
0:40:48 > 0:40:52I don't expect to pay more than £1,000
0:40:52 > 0:40:55for the kitchen, including the appliances.
0:40:55 > 0:40:56The bathroom?
0:40:56 > 0:40:58Probably half that.
0:40:58 > 0:41:02So, that's about £1,500 on a new kitchen and bathroom,
0:41:02 > 0:41:06out of Paul's total budget of 5,000 to 6,000.
0:41:06 > 0:41:10He plans to replace the windows from that budget, as well.
0:41:10 > 0:41:12He set a timescale of six weeks
0:41:12 > 0:41:16to get the place ready for rental.
0:41:18 > 0:41:20I'm not going to be able to spend as much time up here,
0:41:20 > 0:41:23so my colleague is going to be getting on with it,
0:41:23 > 0:41:25and I'm going to pop up -
0:41:25 > 0:41:26probably over some weekends-
0:41:26 > 0:41:28to do some of the painting.
0:41:28 > 0:41:31- Right. And then it's get a tenant in?- That's it.
0:41:31 > 0:41:34And build the portfolio - is that the plan?
0:41:34 > 0:41:36Yes.
0:41:36 > 0:41:39I'd like to get into double figures as soon as possible,
0:41:39 > 0:41:41so back at the next auction.
0:41:41 > 0:41:43Sticking to this area?
0:41:43 > 0:41:45Yes, cos it gives a good return.
0:41:45 > 0:41:50Ideally, I'd love to do it further south,
0:41:50 > 0:41:52but the return just isn't there.
0:41:52 > 0:41:55Good luck with that. Congratulations.
0:41:55 > 0:41:57- Thank you, Martin. - We'll see how you get on.- Cheers.
0:41:57 > 0:41:59Paul certainly seems to know
0:41:59 > 0:42:02what he's doing with his property investments,
0:42:02 > 0:42:04travelling all the way from the south to the north
0:42:04 > 0:42:07to get this flat, and I can understand why.
0:42:07 > 0:42:09How will he get on sorting it out?
0:42:09 > 0:42:12He's got the expertise, and he's got a man who can,
0:42:12 > 0:42:14so what could go wrong? Well, you never know.
0:42:14 > 0:42:16You can find out later in the show.
0:42:18 > 0:42:22It's always very expensive to put things off until tomorrow,
0:42:22 > 0:42:25but time is money, and delays can be very expensive.
0:42:25 > 0:42:28Have our buyers been busy, or have they let the grass grow
0:42:28 > 0:42:30under their feet?
0:42:30 > 0:42:31Let's find out.
0:42:33 > 0:42:36We return now to Chatham, in Kent,
0:42:36 > 0:42:40where earlier in the programme, Frances - a full-time nurse -
0:42:40 > 0:42:42and her husband, Ron,
0:42:42 > 0:42:44bought this very damp mid-terrace house
0:42:44 > 0:42:46for £82,000.
0:42:46 > 0:42:49It was their third investment property.
0:42:50 > 0:42:52And Frances' daughter Becky, who is a teacher,
0:42:52 > 0:42:56was going to lend a hand with the refurbishment.
0:42:56 > 0:43:01They planned to rent it out when the work was finished.
0:43:01 > 0:43:04What's the grand plan here? What do you intend to do
0:43:04 > 0:43:05with this house?
0:43:05 > 0:43:09What I would like to do, which is very different to what
0:43:09 > 0:43:11my eldest and my husband want to do...
0:43:11 > 0:43:14They just want us to come in,
0:43:14 > 0:43:17paint it up, do the kitchen and the bathroom,
0:43:17 > 0:43:19and just rent it.
0:43:19 > 0:43:21I'd like to move the stairs
0:43:21 > 0:43:24down to outside the kitchen, to go up that way,
0:43:24 > 0:43:26so that it's one room.
0:43:26 > 0:43:29They'd set a budget of 8,000 to 10,000,
0:43:29 > 0:43:32and a timescale of six months.
0:43:32 > 0:43:35Well, there must have been a delay,
0:43:35 > 0:43:38because it's now almost 18 months later...
0:43:39 > 0:43:43..when we meet up with Frances once more.
0:43:45 > 0:43:47The house now has a smart, black front door,
0:43:47 > 0:43:50but the original windows have been retained.
0:43:52 > 0:43:56At the back of the house, the damp has been cured in the kitchen.
0:43:56 > 0:44:01It's now a light room, with new units and appliances,
0:44:01 > 0:44:03and where the damp was at its worst,
0:44:03 > 0:44:07a new boiler has been installed.
0:44:09 > 0:44:12At the front of the house, the dividing wall between the two rooms
0:44:12 > 0:44:16has been removed, creating a large, open-plan living area.
0:44:19 > 0:44:22They've taken out the chimney breasts from both rooms.
0:44:24 > 0:44:26And the staircase has been relocated,
0:44:26 > 0:44:29from between the two former reception rooms, to the side
0:44:29 > 0:44:31of the open-plan living area.
0:44:33 > 0:44:38It certainly looks as if they've followed Frances' plans.
0:44:38 > 0:44:41Well, the stairs used to be here -
0:44:41 > 0:44:44just sort of this space, really.
0:44:44 > 0:44:47That was quite a small lounge.
0:44:49 > 0:44:51And a bigger back room, actually.
0:44:51 > 0:44:53And now, we've just put them here.
0:44:53 > 0:44:55We've changed the layout upstairs.
0:44:55 > 0:44:59Just moving the stairs, I think, has made a huge difference.
0:44:59 > 0:45:01It has indeed,
0:45:01 > 0:45:04because the layout upstairs has really benefitted, too.
0:45:08 > 0:45:13The front bedroom is now accessed from a new landing.
0:45:13 > 0:45:16The back bedroom is a little smaller,
0:45:16 > 0:45:19to accommodate the new landing.
0:45:19 > 0:45:23But the benefit is you can now reach the bathroom,
0:45:23 > 0:45:25without having to go through the second bedroom.
0:45:28 > 0:45:32And the new white suite looks great!
0:45:34 > 0:45:36The black mould and damp, I was so worried about here,
0:45:36 > 0:45:38and throughout the house,
0:45:38 > 0:45:41turned out to be a condensation problem.
0:45:41 > 0:45:45And, although it was at its worst in the bathroom,
0:45:45 > 0:45:48it looked like it had caused problems everywhere.
0:45:48 > 0:45:51I think in the bathroom it looked worse,
0:45:51 > 0:45:53because there was no insulation in the roof.
0:45:53 > 0:45:55So, if you had a hot bath,
0:45:55 > 0:45:58the heat of the steam hit the roof,
0:45:58 > 0:46:00and you had all this condensation.
0:46:00 > 0:46:04So we've insulated that roof,
0:46:04 > 0:46:07and got a full ceiling in it.
0:46:10 > 0:46:12We couldn't get out to the garden before,
0:46:12 > 0:46:14but there's a lovely outside space.
0:46:14 > 0:46:17The project has taken longer than expected.
0:46:17 > 0:46:19Frances works full-time,
0:46:19 > 0:46:22and she and her husband, Ron, have also moved house.
0:46:22 > 0:46:25Although Ron did the plumbing, and they've both done the decorating,
0:46:25 > 0:46:27it's had to be mainly in the evenings and weekends.
0:46:27 > 0:46:30But what about daughter Becky?
0:46:30 > 0:46:32Did she lend a hand, as planned?
0:46:34 > 0:46:37Becky, obviously, was quite involved early on.
0:46:37 > 0:46:39She came down quite a few times,
0:46:39 > 0:46:43to help get the chimney breast down,
0:46:43 > 0:46:44and that was a big job.
0:46:44 > 0:46:47Then, basically, this year
0:46:47 > 0:46:49she's helped with painting.
0:46:50 > 0:46:53And how has the budget fared?
0:46:53 > 0:46:57Did Frances stick to that 8,000 to 10,000?
0:46:57 > 0:47:01The budget, up-to-date, has went to 22,000,
0:47:01 > 0:47:04but we still think we have another couple of thousand,
0:47:04 > 0:47:06for the flooring,
0:47:06 > 0:47:09and some more painting on the outside.
0:47:09 > 0:47:12Frances and Ron paid £82,000 for the house.
0:47:12 > 0:47:15Their spend is likely to end up
0:47:15 > 0:47:17around £24,000.
0:47:17 > 0:47:19They overspend was because they followed
0:47:19 > 0:47:22Frances' plans to move the stairs.
0:47:22 > 0:47:27It takes their total outlay to around 106,000.
0:47:29 > 0:47:34Time to hear what two local estate agents think of the finished result.
0:47:34 > 0:47:37I love the way they've done the property with the staircase.
0:47:37 > 0:47:40Most Victorian properties have the staircase going through the middle,
0:47:40 > 0:47:42which uses up so much room.
0:47:42 > 0:47:44They've taken away the chimney breasts,
0:47:44 > 0:47:46and used it the best it can be used in a Victorian house.
0:47:46 > 0:47:51I think moving the staircase has given a proper landing upstairs.
0:47:51 > 0:47:53Also now, you have two good-sized bedrooms,
0:47:53 > 0:47:55and a lovely-sized bathroom.
0:47:55 > 0:48:00so it gives it that really nice, big feel about the house.
0:48:00 > 0:48:02I like neutral colours, normally, in houses,
0:48:02 > 0:48:03as it's my job to sell them.
0:48:03 > 0:48:05But the kitchen, as it's open-plan,
0:48:05 > 0:48:07with the dining room and the lounge,
0:48:07 > 0:48:10it's nice to see a bit of colour through there.
0:48:10 > 0:48:11What about the numbers?
0:48:11 > 0:48:16Is the property now worth more than the 106,000 they've invested here?
0:48:16 > 0:48:18If I was going to put this property on the market,
0:48:18 > 0:48:20I'd be looking at marketing it around
0:48:20 > 0:48:25£110,000 to £115,000 for the property
0:48:25 > 0:48:28At the moment, I'd market it in today's market at 114,995 -
0:48:28 > 0:48:31in order to achieve £110,000 upwards.
0:48:31 > 0:48:35Those valuations could generate a potential gross profit
0:48:35 > 0:48:38of between £4,000 and £9,000.
0:48:38 > 0:48:41Minus the usual selling fees,
0:48:41 > 0:48:44after 18 months.
0:48:44 > 0:48:45That's better than we thought,
0:48:45 > 0:48:48because we thought we might just break even.
0:48:48 > 0:48:53Although we're still not going to sell. We want to wait, and rent it.
0:48:53 > 0:48:56How much can the experts
0:48:56 > 0:49:00see local tenants paying for this?
0:49:00 > 0:49:03If I was going to rent this property out, I'd be looking at between
0:49:03 > 0:49:06£575 per calendar month,
0:49:06 > 0:49:10to somewhere around £595 per calendar month.
0:49:10 > 0:49:12Rentings at the moment are quite easy.
0:49:12 > 0:49:16You'd get £525 to £550, per calendar month.
0:49:16 > 0:49:20That's a potential yield of between 6% and 7%.
0:49:20 > 0:49:23Which makes renting the wise thing to do here.
0:49:23 > 0:49:25Is Frances happy with that?
0:49:25 > 0:49:29Obviously, the top amount is better!
0:49:29 > 0:49:30SHE LAUGHS
0:49:30 > 0:49:33It's more than we thought, actually,
0:49:33 > 0:49:35so that's good.
0:49:35 > 0:49:38Getting this, their third investment property
0:49:38 > 0:49:40ready to rent out
0:49:40 > 0:49:42had dragged on a bit,
0:49:42 > 0:49:45which for any buy-to-let investor is not ideal.
0:49:45 > 0:49:47Is Frances pleased with the end result?
0:49:49 > 0:49:52It's been hard work - and it's been a lot longer than the others,
0:49:52 > 0:49:55but now you can see the end product,
0:49:55 > 0:49:58and once we've done the garden and that, it'll be nice.
0:49:58 > 0:50:00A nice house for someone.
0:50:04 > 0:50:07Earlier in the programme, in Blurton, Stoke-on-Trent,
0:50:07 > 0:50:11a second floor one-bedroom flat in this block
0:50:11 > 0:50:13was bought for £34,000 by Paul.
0:50:13 > 0:50:15It took his buy-to-let portfolio to seven.
0:50:15 > 0:50:20He owns his own kitchen fitting business in Maidenhead,
0:50:20 > 0:50:22but has concentrated his property portfolio
0:50:22 > 0:50:26in the Stoke area, where he can get a better rental return.
0:50:29 > 0:50:32Does it make managing the properties trickier?
0:50:32 > 0:50:36I'm quite lucky that I have my own kitchen and bathroom business.
0:50:36 > 0:50:37Oh, great.
0:50:37 > 0:50:40But obviously, I don't come up here to do all of that.
0:50:40 > 0:50:43I've got an excellent carpenter and plumber,
0:50:43 > 0:50:46and electricians, and the rest of the trades I've made contact with
0:50:46 > 0:50:48since I've been doing this.
0:50:51 > 0:50:55Seven weeks had passed when we returned to Blurton,
0:50:55 > 0:50:57and met up again with Paul to see the finished flat.
0:50:57 > 0:51:01The hallway has retained the red door,
0:51:01 > 0:51:04but the carpet and walls have been toned down.
0:51:04 > 0:51:08The fireplace remains in the living room,
0:51:08 > 0:51:12and this feature wall is certainly blooming!
0:51:14 > 0:51:17New windows have been installed throughout the flat.
0:51:18 > 0:51:21No surprises that the kitchen looks great,
0:51:21 > 0:51:24with replacement units, sink and window.
0:51:28 > 0:51:30Next door, in the bathroom,
0:51:30 > 0:51:32there's further improvement.
0:51:32 > 0:51:35We've done a huge amount of work in the bathroom.
0:51:35 > 0:51:39We had an old, white cast-iron bath,
0:51:39 > 0:51:41with two taps in the corner.
0:51:41 > 0:51:44We've replaced that now with a stand-in shower.
0:51:44 > 0:51:47But that wasn't the only thing.
0:51:47 > 0:51:48On this wall,
0:51:48 > 0:51:52the panelling that came along this wall,
0:51:52 > 0:51:55stood out about four or five inches.
0:51:55 > 0:51:57Behind that panelling, and in the kitchen,
0:51:57 > 0:51:58were two massive water tanks.
0:51:58 > 0:52:00In order to get the shower in,
0:52:00 > 0:52:02we had to take all of that out.
0:52:02 > 0:52:04So, as you can see,
0:52:04 > 0:52:06it's made it a lot bigger.
0:52:06 > 0:52:08I'm really pleased with the way it's turned out.
0:52:08 > 0:52:10Much more roomy.
0:52:10 > 0:52:13Got a tremendous shower in there.
0:52:13 > 0:52:16And it's something that I'd enjoy coming in to.
0:52:18 > 0:52:22Yes, the tiling and white appliances really look great.
0:52:26 > 0:52:29Along the corridor, the bedroom has new carpets and a colour scheme.
0:52:32 > 0:52:35But the bedside cabinets have been reused.
0:52:35 > 0:52:38But what were the main issues in the living room?
0:52:38 > 0:52:42The major thing in this room was the ceiling,
0:52:42 > 0:52:43which was Artex-ed.
0:52:43 > 0:52:46I got hold of a local plasterer
0:52:46 > 0:52:48He came in and did the ceiling.
0:52:48 > 0:52:51I kept the fireplace,
0:52:51 > 0:52:55cos I thought, "Why rip it out? It looks good. Does the job".
0:52:55 > 0:52:58But if you intend to keep an existing fire,
0:52:58 > 0:53:03you must check that it meets electrical safety regulations.
0:53:03 > 0:53:06Paul reused the oven in the kitchen.
0:53:06 > 0:53:09He got it checked out and it was fine,
0:53:09 > 0:53:12but he did install a new water heater to provide instant hot water.
0:53:12 > 0:53:15Surely that sounds a bit of an expensive luxury?
0:53:18 > 0:53:21The cost of the unit was £140.
0:53:21 > 0:53:23To be quite honest,
0:53:23 > 0:53:27the scrap value of the copper and brass we've taken out
0:53:27 > 0:53:30probably paid for it.
0:53:30 > 0:53:32MUSIC: "Brass in Pocket" by The Pretenders
0:53:36 > 0:53:40Paul travelled up from Maidenhead to do the initial work on the flat,
0:53:40 > 0:53:43but then had to concentrate on his kitchen business.
0:53:43 > 0:53:46So the two local qualified tradesmen he uses did the rest.
0:53:46 > 0:53:49And a third colleague travelled up from the south
0:53:49 > 0:53:51to do the decorating.
0:53:51 > 0:53:53With his trade contacts,
0:53:53 > 0:53:55Paul sourced some good bargains.
0:53:55 > 0:53:57But, once the labour cost had been added,
0:53:57 > 0:53:59plus the replacement windows,
0:53:59 > 0:54:02did he stick to his £5,000 - £6,000 budget?
0:54:05 > 0:54:08We spent a little more than that,
0:54:08 > 0:54:10because we've had extra work to do.
0:54:10 > 0:54:14So, I've spent just a fraction over £7,000.
0:54:14 > 0:54:16Still, not bad.
0:54:16 > 0:54:22With his £34,000 purchase price, it takes the total to £41,000.
0:54:22 > 0:54:27Time to hear the opinions of two local property experts.
0:54:28 > 0:54:31My first impression is that he's done a very nice job
0:54:31 > 0:54:33with quite limited space.
0:54:33 > 0:54:35The bathroom looks really nice.
0:54:35 > 0:54:37It was a good idea to put the shower in,
0:54:37 > 0:54:40rather than compromise the space by trying to fit a bath in,
0:54:40 > 0:54:41so he's done a good job.
0:54:41 > 0:54:44What I particularly like about the kitchen
0:54:44 > 0:54:46is the fact he's taken the time and trouble
0:54:46 > 0:54:47to remove the water tanks
0:54:47 > 0:54:51that were taking up a lot of valuable space.
0:54:51 > 0:54:53The kitchen's great, again with that extra space.
0:54:53 > 0:54:55It's really enabled him to put in extra storage,
0:54:55 > 0:54:58so that will really appeal to people, I'm sure.
0:54:58 > 0:55:00The property will appeal
0:55:00 > 0:55:03to single renters, because of the security aspect.
0:55:03 > 0:55:05Second floor, security doors.
0:55:05 > 0:55:08As well as sharers, as well.
0:55:08 > 0:55:13How much could the flat achieve if it was sold on -
0:55:13 > 0:55:16more than the £41,000 Paul has spent on it?
0:55:16 > 0:55:19If we were going to put the property up for sale,
0:55:19 > 0:55:23we'd probably market it around the £45,000 mark,
0:55:23 > 0:55:24to get as close as possible.
0:55:24 > 0:55:27If we were marketing this property, we would look for an asking price
0:55:27 > 0:55:30of £47,500.
0:55:30 > 0:55:35That would produce £4,000 to £6,500 gross profit,
0:55:35 > 0:55:37before the usual expenses.
0:55:37 > 0:55:40Is that the sort of valuation Paul had expected?
0:55:40 > 0:55:44I thought it would be round about 50-ish.
0:55:44 > 0:55:47But it doesn't surprise me.
0:55:47 > 0:55:49But Paul's always planned
0:55:49 > 0:55:51to rent it out for his buy-to-let portfolio.
0:55:51 > 0:55:55So, what income could he achieve?
0:55:55 > 0:55:56For rental,
0:55:56 > 0:56:00the property would achieve about £375 per calendar month.
0:56:00 > 0:56:05I would suggest a rent per calendar month of £375.
0:56:05 > 0:56:11That makes a yield of around 11%, based on those estimates.
0:56:11 > 0:56:13375? Pretty good.
0:56:13 > 0:56:17That's more than they normally get here.
0:56:17 > 0:56:19But they're not to this standard.
0:56:19 > 0:56:20So, yeah, I'm pleased with that.
0:56:22 > 0:56:27So Paul's decision to build his portfolio around Stoke-on-Trent
0:56:27 > 0:56:28looks to be paying dividends.
0:56:28 > 0:56:33What advice would he give other prospective developers?
0:56:33 > 0:56:35Take a good look at the property.
0:56:35 > 0:56:37Keep what you can,
0:56:37 > 0:56:38as long as it's worth keeping,
0:56:38 > 0:56:43and make sure you do a good job.
0:56:43 > 0:56:44Because at the end of the day,
0:56:44 > 0:56:46I think you get a good tenant in return.
0:56:48 > 0:56:51Join us next time for more riveting properties
0:56:51 > 0:56:53being sold under the hammer.
0:56:53 > 0:56:54Yes, no two stories are ever the same -
0:56:54 > 0:56:57so, for more flats, maisonettes and houses,
0:56:57 > 0:56:58we'll see you next time.
0:56:58 > 0:57:00- Goodbye!- Bye!
0:57:21 > 0:57:24Subtitles by Red Bee Media Ltd