Episode 46

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0:00:02 > 0:00:06Hello, now we all know that property prices can fluctuate wildly.

0:00:06 > 0:00:07But even so, over the years,

0:00:07 > 0:00:10bricks and mortar have proved a solid place to put your money.

0:00:10 > 0:00:12So, if you're thinking of investing,

0:00:12 > 0:00:15then maybe you should head down to your local auction

0:00:15 > 0:00:17and check out what's on offer.

0:00:42 > 0:00:45There are hundreds of property auctions all around the country

0:00:45 > 0:00:48throughout the year, so you really are spoilt for choice.

0:00:48 > 0:00:51So, let's see which properties made our buyers part

0:00:51 > 0:00:54with their hard-earned cash on today's show.

0:00:55 > 0:00:59'More people are considering self-builds these days

0:00:59 > 0:01:02'and this plot in Staffordshire is primed for development.'

0:01:02 > 0:01:05This could be an ideal opportunity to give it a try.

0:01:05 > 0:01:09'This commercial unit in Kent could be a business opportunity

0:01:09 > 0:01:11'for a budding entrepreneur.'

0:01:11 > 0:01:15You could really see and feel a business would thrive in here.

0:01:15 > 0:01:19'And they say never judge a book by its cover,

0:01:19 > 0:01:23'but does this bungalow in West Yorkshire live up to its initial impression?'

0:01:23 > 0:01:25First glance, yes, I think it does.

0:01:27 > 0:01:30'All these properties were sold at auction.

0:01:30 > 0:01:33'We'll find out who bought them and what they paid for them

0:01:33 > 0:01:35'when they went under the hammer.'

0:01:43 > 0:01:48I'm in Northwood, less than a mile from the centre of Stoke-on-Trent.

0:01:48 > 0:01:53Really popular spot, good schools, local amenities, transport links,

0:01:53 > 0:01:56yes, it's looking good so far.

0:01:56 > 0:01:58'This is a largely residential area'

0:01:58 > 0:02:01'and the houses here all look pretty similar.

0:02:01 > 0:02:03'There are terraces,

0:02:03 > 0:02:05'some semi-detached and ex-local authority,

0:02:05 > 0:02:08'but there isn't a new build that I can see.

0:02:08 > 0:02:11'Well, not yet at least.'

0:02:11 > 0:02:14The property I'm here to see actually isn't a property at all.

0:02:14 > 0:02:18It's a pre-property. What I mean by pre-property?

0:02:18 > 0:02:20It's a roundabout way of saying it's a plot of land,

0:02:20 > 0:02:24where in the future, a property will probably be.

0:02:24 > 0:02:28205 square metres, it's nice and flat, it clearly designed

0:02:28 > 0:02:31and defined by these walls.

0:02:31 > 0:02:32Yes, good start.

0:02:32 > 0:02:37'This plot of land had a guide price at auction of £18,000,

0:02:37 > 0:02:39' which seems quite a lot for its size.'

0:02:39 > 0:02:42# I sit on the muddy ground

0:02:42 > 0:02:44# The muddy ground

0:02:44 > 0:02:46# Waiting for you... #

0:02:46 > 0:02:50'But dig a little deeper and you'll find out why.'

0:02:50 > 0:02:53If this was sold as just a bit of garden,

0:02:53 > 0:02:56its value would be just a few thousand quid.

0:02:56 > 0:02:58But what that makes this particular plot valuable

0:02:58 > 0:03:01is that it comes with outline planning permission

0:03:01 > 0:03:04for the creation of a detached dwelling.

0:03:04 > 0:03:06So, that could be of interest to a local builder,

0:03:06 > 0:03:08or the growing band of people

0:03:08 > 0:03:10who fancy having a go at doing a self-build.

0:03:10 > 0:03:12But before you take on a project like that,

0:03:12 > 0:03:14it's not as easy as it sounds.

0:03:14 > 0:03:17You've got to consider getting full planning permission,

0:03:17 > 0:03:20you've got building regulations, employing a builder to do the work

0:03:20 > 0:03:22and then selling on the final project.

0:03:22 > 0:03:24But don't let that put you off. If that's what you fancy,

0:03:24 > 0:03:27this could be an ideal opportunity to give it a try.

0:03:27 > 0:03:32'It can sometimes be a real gamble to buy a piece of land

0:03:32 > 0:03:35'if you have no idea what the planners will allow.

0:03:35 > 0:03:37'So, having the outline plans approved

0:03:37 > 0:03:41'is at least a very good starting point.

0:03:41 > 0:03:43'But to get that full planning permission,

0:03:43 > 0:03:45'there's still a lot to consider.'

0:03:46 > 0:03:49The plot of land is situated on a road of largely,

0:03:49 > 0:03:51probably turn-of-the-century properties.

0:03:51 > 0:03:53When it comes to getting planning permission,

0:03:53 > 0:03:55the planners are probably going to want you to keep it

0:03:55 > 0:03:58something in character with what's around here.

0:03:58 > 0:04:02If your idea's a fully glass fronted, half timber, solid oak,

0:04:02 > 0:04:04whatever it is, forget it.

0:04:04 > 0:04:06And you are also going to have to consider

0:04:06 > 0:04:08the thoughts of the neighbours.

0:04:08 > 0:04:10Properties here, properties there

0:04:10 > 0:04:13and windows overlooking them are not going to go down well.

0:04:13 > 0:04:16Top of that, you're going to have to think about connecting services,

0:04:16 > 0:04:17but all that's pretty standard fare.

0:04:17 > 0:04:19I think this has a lot of potential.

0:04:19 > 0:04:22'So, what might the house look like?

0:04:22 > 0:04:27'How many bedrooms will it have and will it have any outside space?

0:04:27 > 0:04:29'That will all depend on what the new owners want

0:04:29 > 0:04:31'and what the planners will approve.

0:04:31 > 0:04:33'But in the meantime,

0:04:33 > 0:04:35'we can certainly get an idea of what might be to come.'

0:04:38 > 0:04:43OK, so these are the plans that provisionally have been passed.

0:04:43 > 0:04:46I was talking about how the property itself had to fit in

0:04:46 > 0:04:47with the existing properties.

0:04:47 > 0:04:50You can see how little architectural details,

0:04:50 > 0:04:52like the arches over the doors and windows,

0:04:52 > 0:04:54that fits in with the local look.

0:04:54 > 0:04:57There's more detailed plans of what the property's going to be.

0:04:57 > 0:05:01This is two beds but there is talk of it potentially being three beds.

0:05:01 > 0:05:04Fairly simple, downstairs kitchen, sitting room and a bathroom.

0:05:04 > 0:05:07Upstairs, basically two bedrooms and a WC.

0:05:07 > 0:05:10So, you haven't got a lot of space to play with,

0:05:10 > 0:05:12but I think what's been done here

0:05:12 > 0:05:14will allow for at least the properties to have

0:05:14 > 0:05:17a bit of a garden, which is a nice extra touch.

0:05:17 > 0:05:19'For the right person, this could be a great project.

0:05:19 > 0:05:22'It's a relatively small build

0:05:22 > 0:05:25'and although it would still be a big undertaking,

0:05:25 > 0:05:28'I can't see anything here to ring alarm bells.

0:05:28 > 0:05:31'The main question is, is there any profit to be made?

0:05:31 > 0:05:34'We asked a local property expert

0:05:34 > 0:05:36'to come and have a look at the plot

0:05:36 > 0:05:39'and give his advice and talk figures.'

0:05:40 > 0:05:44'First impressions of the plot is that it is quite small',

0:05:44 > 0:05:47also quite narrow, but at the end of the day somebody will end up

0:05:47 > 0:05:49with a detached dwelling which will be quite unique to the area.

0:05:49 > 0:05:54'So, what kind of numbers are we talking about here then?'

0:05:54 > 0:05:57'I would value the plot with outline planning permission

0:05:57 > 0:06:00'in the region of 20 to £25,000.

0:06:00 > 0:06:02'After the development has taken place',

0:06:02 > 0:06:07which would comprise of a two or three bed detached dwelling,

0:06:07 > 0:06:10I would anticipate a resale value in the region of £100,000.

0:06:10 > 0:06:14'So, selling the finished house could make up to five times

0:06:14 > 0:06:18'the value of the land as it is.

0:06:18 > 0:06:21'But remember, you have to factor in the building costs

0:06:21 > 0:06:25'before calculating any potential profit.

0:06:25 > 0:06:29'So there is room to make money here by putting a house up for sale.

0:06:29 > 0:06:32'But what about the rental route?'

0:06:32 > 0:06:35'After the developments have taken place',

0:06:35 > 0:06:38I would anticipate the rental value

0:06:38 > 0:06:42in the region of 450 to £500 per calendar month.

0:06:42 > 0:06:46Well, I think there's a lot going for this little plot of land.

0:06:46 > 0:06:50It's flat, it's at a good location, easy access to the road...

0:06:50 > 0:06:54Yes, let's see who went digging for a bargain when it went to auction.

0:06:54 > 0:06:57OK, lot number 21, a building plot,

0:06:57 > 0:07:01it has outline planning for a detached dwelling.

0:07:01 > 0:07:04So, what shall we say for lot 21? 15,000?

0:07:04 > 0:07:06A building plot, with planning permission.

0:07:06 > 0:07:1015 bid, thank you. At £15,000.

0:07:10 > 0:07:14Going to be 16 now. Yes? £16,000.

0:07:14 > 0:07:1816,500, you're saying. 16,500.

0:07:18 > 0:07:2017,500. 18?

0:07:20 > 0:07:2518,000, seated now. got you. 18,500.

0:07:25 > 0:07:2619?

0:07:26 > 0:07:2819?

0:07:28 > 0:07:30Shaking his head. Another 500 anywhere else?

0:07:30 > 0:07:34At £19,000 then.

0:07:34 > 0:07:36Back here, 19,500.

0:07:36 > 0:07:3820, sir?

0:07:38 > 0:07:4120? 20. Another half?

0:07:43 > 0:07:45Are you sure?

0:07:45 > 0:07:4920,000 on the end of your row then, at £20,000, first time.

0:07:49 > 0:07:52At £20,000, second time.

0:07:52 > 0:07:57Third and final time, £20,000, all done?

0:07:57 > 0:08:00You bought it, sir, on the end, well done.

0:08:00 > 0:08:05'That successful bid of £20,000 was made by John.

0:08:05 > 0:08:08'He lives locally and has worked in the building industry

0:08:08 > 0:08:10'since he was 16.

0:08:10 > 0:08:12'For John and his partner Michaela,

0:08:12 > 0:08:16'this small piece of land is the start of a big venture.

0:08:16 > 0:08:21'I met them back at the plot to hear all about it.'

0:08:21 > 0:08:23- John, Michaela...- Hello.

0:08:23 > 0:08:25Lovely to meet you both. Congratulations.

0:08:25 > 0:08:28- Thank you.- Got a plot of land. - Yes, our first.- Our first.

0:08:28 > 0:08:30So tell me why you wanted to buy it.

0:08:30 > 0:08:34Basically, because it looked a simple build.

0:08:34 > 0:08:36The land is very small.

0:08:36 > 0:08:39It's our first development, I didn't want anything that was too big.

0:08:39 > 0:08:41So, first time you've had a go at doing a self build.

0:08:41 > 0:08:45- Have you got any experience at all in this sort of field?- Yes...

0:08:45 > 0:08:48I've worked in the construction industry all my life.

0:08:48 > 0:08:51So, yes, I've got quite a lot of varied experience.

0:08:51 > 0:08:54- What attracted you to the idea of a self build?- Me.

0:08:54 > 0:08:57- You? Oh, tell me.- Well, yes.

0:08:57 > 0:08:59I just kept suggesting that as he's always building,

0:08:59 > 0:09:02that maybe he can start building for yourself.

0:09:02 > 0:09:05I'm always building for other people, that's what I've done all my life.

0:09:05 > 0:09:08You know, for main contractors, stuff like that.

0:09:08 > 0:09:10So Michaela's kind of pushed me to say well, you know,

0:09:10 > 0:09:12go out there, do it yourself.

0:09:15 > 0:09:18'John and Michaela have well and truly taken the plunge.

0:09:18 > 0:09:20'They've got the experience and the passion

0:09:20 > 0:09:23'and now they've bought the land.

0:09:23 > 0:09:28'So, step two is all about finalising those plans.'

0:09:28 > 0:09:31I've looked at the plans. Are you going to stick to them?

0:09:31 > 0:09:33We've got the plans, obviously.

0:09:33 > 0:09:37In the outline planning permission, that's gone off,

0:09:37 > 0:09:41in the access statement, it states a three bedroom.

0:09:41 > 0:09:43On the plans, it states a two-bedroom,

0:09:43 > 0:09:45so we are going to submit two sets of plans.

0:09:45 > 0:09:50One for the plans in my hand and another set of plans

0:09:50 > 0:09:52to see if we can get a three bedroom house,

0:09:52 > 0:09:55which will obviously get us more money at the end of the project,

0:09:55 > 0:09:57if we can get three bedrooms.

0:09:57 > 0:10:01And have you weighed up the extra cost of the extra bedroom?

0:10:01 > 0:10:06- Is it much?- No, I don't think so. We'll still get it into, in budget.

0:10:06 > 0:10:07So, what is the budget?

0:10:07 > 0:10:11Well, I'm hoping, we've bought the land for 20,000,

0:10:11 > 0:10:15and I'm hoping to build it for 60,000...

0:10:15 > 0:10:20- Quite tight, that.- Yes, but I have got contacts within the industry.

0:10:20 > 0:10:26So hopefully we can sell it, maybe for 110, something like that

0:10:26 > 0:10:28and make a little bit of a profit there

0:10:28 > 0:10:32to obviously move on into our next scheme.

0:10:33 > 0:10:35They're so keen to get started that they're doing some digging now

0:10:35 > 0:10:40to see if there are any problems lying under the surface.

0:10:44 > 0:10:48John's contacts and experience will hopefully mean

0:10:48 > 0:10:52he can avoid frustrating delays at both planning and building stages.

0:10:53 > 0:10:56That's just as well, because he's set a tight timeframe.

0:10:56 > 0:11:00He's hoping to start laying foundations in about four months

0:11:00 > 0:11:02and spend another four on the build.

0:11:05 > 0:11:08So, Michaela, what's your role going to be in the whole thing?

0:11:08 > 0:11:11- Make sure it's looking nice.- Right. - The important bits!

0:11:11 > 0:11:14- And actually get involved in some of the interior design?- Yes.

0:11:14 > 0:11:16Are you going to be involved in the project?

0:11:16 > 0:11:20Yeah, I'll be overseeing the build myself

0:11:20 > 0:11:22as a project manager.

0:11:22 > 0:11:24And doing which bits of work?

0:11:24 > 0:11:27I won't actually get my hands dirty!

0:11:27 > 0:11:31I will oversee and I'll bring some men in to do it for me.

0:11:31 > 0:11:35But I'll oversee cos I only live not far from here.

0:11:35 > 0:11:39I can pop in and make sure it's being built to my high specification.

0:11:39 > 0:11:41Well, congratulations. And good luck with it all.

0:11:41 > 0:11:45- I look forward to seeing how you get on.- Yeah, fantastic.

0:11:45 > 0:11:48So, John and Michaela realising a dream,

0:11:48 > 0:11:51with this, their first self-build project,

0:11:51 > 0:11:53but a £60,000 budget is very tight

0:11:53 > 0:11:56and John really needs to keep an eye on that.

0:11:56 > 0:11:58And in the current market conditions,

0:11:58 > 0:12:01will they make any profit when they come to sell?

0:12:01 > 0:12:04You can find out later in the show.

0:12:08 > 0:12:11This is Queenborough on the Isle of Sheppey in Kent.

0:12:11 > 0:12:14Once an important trading post,

0:12:14 > 0:12:16it was also the playground of Admiral Nelson,

0:12:16 > 0:12:20who is said to have practised his sailing in these waters

0:12:20 > 0:12:22and kept a house with his mistress, Lady Hamilton,

0:12:22 > 0:12:24in Queenborough itself.

0:12:24 > 0:12:26Let's hope the house we're here to see

0:12:26 > 0:12:30has a slightly less scandalous past.

0:12:30 > 0:12:34Nothing like a little bit of celebrity tittle-tattle,

0:12:34 > 0:12:36even if it is 200-odd years old!

0:12:43 > 0:12:46And seeing Queenborough today sparkling in the sunshine,

0:12:46 > 0:12:51it's easy to see why Nelson kept an eye out for a decent des res.

0:12:51 > 0:12:54So, will today's property float my boat?

0:12:54 > 0:12:58In fact, the property I'm here to see

0:12:58 > 0:13:02has had a particularly sweet history since it was a local sweet shop.

0:13:02 > 0:13:06I don't know if business went sour or the previous owners moved on,

0:13:06 > 0:13:10but what we're here to see are the empty commercial premises downstairs

0:13:10 > 0:13:13and the two-bedroom maisonette above,

0:13:13 > 0:13:17all for the guide-price of 80 to 85,000.

0:13:19 > 0:13:23In fact, the former sweet shop then became a florist.

0:13:23 > 0:13:27So, will everything come up roses on the inside of this property?

0:13:38 > 0:13:41Well, this shop has A-1 usage,

0:13:41 > 0:13:44so it could be a sandwich bar, a hairdresser's, a florist.

0:13:44 > 0:13:47Lots of businesses could stem from here.

0:13:47 > 0:13:49But it's really good news it's on the corner plot

0:13:49 > 0:13:51because you get two big lovely windows,

0:13:51 > 0:13:55double bite of the cherry, if you like, to advertise from.

0:13:55 > 0:13:57Lots of space in here.

0:13:57 > 0:14:01You could really see and feel that a business would thrive in here.

0:14:01 > 0:14:03Some original cornicing up there.

0:14:03 > 0:14:05You've got nice high ceilings.

0:14:05 > 0:14:08Yeah, I'd quite like to see what's out the back.

0:14:08 > 0:14:12The back of the sweet shop leaves a slightly bad taste in the mouth,

0:14:12 > 0:14:16with a dingy, dark office, toilet and utility area.

0:14:16 > 0:14:18So, some work needed here,

0:14:18 > 0:14:21but at least it's not a little shop of horrors.

0:14:23 > 0:14:27Out back, there's a useful rear yard that could be handy for parking.

0:14:27 > 0:14:31So how does the maisonette compare?

0:14:31 > 0:14:34Well, upstairs you've got some spacious accommodation.

0:14:34 > 0:14:37There's a bedroom here that's easily a double,

0:14:37 > 0:14:39a bathroom with a white suite,

0:14:39 > 0:14:42and, I can't believe I'm going to say this,

0:14:42 > 0:14:44but in this instance I'd keep this woodchip wallpaper.

0:14:44 > 0:14:48It will take for ever to take off and then you've got to replaster,

0:14:48 > 0:14:51so you've got all those cost implications to think about.

0:14:51 > 0:14:55The kitchen, I'm happy to say you could easily get a table in, which I love.

0:14:55 > 0:14:57An eat-in kitchen, nothing better than that.

0:14:57 > 0:14:59The units are salvageable

0:14:59 > 0:15:02so you could turn that into quite a good space.

0:15:02 > 0:15:06And, look, there's a certain amount of character to this living-room.

0:15:07 > 0:15:09You've got double glazing, because you have got a fairly

0:15:09 > 0:15:11noisy road out there, lovely period fireplace.

0:15:11 > 0:15:16You know, overall, I think this could be a really nice maisonette.

0:15:16 > 0:15:17Yes, these are good-sized rooms,

0:15:17 > 0:15:20ready and ripe for some freshening up,

0:15:20 > 0:15:22but it doesn't end there, because upstairs

0:15:22 > 0:15:27there's a lovely second bedroom, which is dual aspect and spacious.

0:15:27 > 0:15:30And close by, a flat terraced roof,

0:15:30 > 0:15:34which could prove handy for some outside space.

0:15:34 > 0:15:35With the front door

0:15:35 > 0:15:39on the side street, this place feels more like a home,

0:15:39 > 0:15:42rather than just some rooms above a shop, but while the setup is looking

0:15:42 > 0:15:47practically perfect, is the location the right place to invest your cash?

0:15:47 > 0:15:50Just because a town has history and a harbour,

0:15:50 > 0:15:52it doesn't mean it's not hard up.

0:15:52 > 0:15:55Queenborough, in common with the rest of the Isle of Sheppey

0:15:55 > 0:15:57has struggled with the lack of trade,

0:15:57 > 0:16:01poor employment opportunities, and inadequate transport links.

0:16:01 > 0:16:05But there is a master plan, with millions of pounds behind it,

0:16:05 > 0:16:08it could change things, with a new marina, new homes,

0:16:08 > 0:16:11and a better infrastructure for the town.

0:16:11 > 0:16:16Regeneration can sometimes be all talk, and it's as well to be wary.

0:16:16 > 0:16:18Big promises, well, they take time,

0:16:18 > 0:16:23but I think Queenborough could really have a brighter future.

0:16:23 > 0:16:25So, with the possibility that things

0:16:25 > 0:16:29are on the way up for Queenborough, maybe this spacious setup,

0:16:29 > 0:16:33guided at 80 to 85,000 could prove a good purchase.

0:16:38 > 0:16:41But for a second opinion, we asked a local estate agent

0:16:41 > 0:16:44for his thoughts on this shop and maisonette.

0:16:44 > 0:16:48First impressions of the properties, I think it needs quite a bit of work.

0:16:48 > 0:16:52The main things out there, the central heating, the double glazing.

0:16:52 > 0:16:54I think if you spent a couple of thousand on it,

0:16:54 > 0:16:56you've probably got quite a nice little place here.

0:16:56 > 0:16:58So, how would the returns look?

0:16:58 > 0:17:02How much could the units make if put on the resale market?

0:17:02 > 0:17:03First, the maisonette.

0:17:03 > 0:17:07I think you're probably looking at about 65 to 70,000.

0:17:07 > 0:17:08It is a good size, and as I say,

0:17:08 > 0:17:10there's not a large amount of

0:17:10 > 0:17:12lower-priced properties available in the area.

0:17:12 > 0:17:15So, I think that would be an achievable price.

0:17:15 > 0:17:17- And the commercial unit? - But I think the value wise,

0:17:17 > 0:17:21you're probably looking at about 40 to possibly £50,000.

0:17:21 > 0:17:25That's a combined value for the two properties

0:17:25 > 0:17:28of between 105 and 120,000.

0:17:30 > 0:17:35Not too bad, if purchased for the guide price of 80 to 85 grand.

0:17:35 > 0:17:36Now, what about rental?

0:17:36 > 0:17:39I think if you was to rent the maisonette out separately,

0:17:39 > 0:17:43you'd be looking at about £625-£650 per calendar month.

0:17:43 > 0:17:48I think you're probably looking per calendar month, with the shop,

0:17:48 > 0:17:50possibly around the £400 mark.

0:17:55 > 0:17:58This is a big property for the cash,

0:17:58 > 0:18:01in an area that could see some improvement in its fortunes.

0:18:01 > 0:18:05But taking on a new small business in these tricky times, well,

0:18:05 > 0:18:09that's a bit of a gamble, and you'd want to buy for the right price.

0:18:09 > 0:18:12Let's see who put up their hand at the auction.

0:18:12 > 0:18:15This one came up towards the end of the auction,

0:18:15 > 0:18:17that didn't prevent a bidding battle.

0:18:17 > 0:18:2180, 85 is the guide. Where do you want to start?

0:18:21 > 0:18:26Start me at 80, £80,000. 80, straight in, I'm obliged. And two.

0:18:26 > 0:18:2882,000. 82.

0:18:28 > 0:18:35And four. 84 and six. And eight. And 90.

0:18:35 > 0:18:3890. And two. And four. 94. And six.

0:18:38 > 0:18:3996. And eight.

0:18:39 > 0:18:4198. And 100.

0:18:41 > 0:18:44And two. And four.

0:18:44 > 0:18:48He shakes his head. I'll take three, if it helps you. 103?

0:18:48 > 0:18:51103. And four.

0:18:51 > 0:18:54And five. Another shake there. He did that before, as well.

0:18:54 > 0:18:57For the first time then, at £104,000.

0:18:57 > 0:19:00104. Do you want one last chance? No. I think he means it.

0:19:00 > 0:19:04104, for the third and final time, if you are sure you are all done.

0:19:04 > 0:19:05It is going to be sold, £104,000.

0:19:05 > 0:19:08HE BANGS THE GAVEL Well done.

0:19:08 > 0:19:11The successful bidder was property developer, Colin.

0:19:11 > 0:19:16But the happy ladies celebrating getting the lot for 104,000,

0:19:16 > 0:19:18where Tina, on the left, and Becky.

0:19:20 > 0:19:22Tina's married to Colin,

0:19:22 > 0:19:26and runs her own hair salon in nearby Sittingbourne.

0:19:26 > 0:19:32# Going back to my roots (Yeah)... #

0:19:32 > 0:19:36She has now teamed up with her friend and colleague, Becky,

0:19:36 > 0:19:39to start a new venture. Ladies, congratulations.

0:19:39 > 0:19:42You seem really happy to have got this?

0:19:42 > 0:19:45- Really happy. Really excited. - Tell me about auction day.

0:19:45 > 0:19:47How excited were you when that hammer went down?

0:19:47 > 0:19:50Firstly, really nervous.

0:19:50 > 0:19:54Really excited, and then when you realise, you think,

0:19:54 > 0:19:56"oh, gosh, this is real."

0:19:56 > 0:19:58So, Becky, what is your involvement with this?

0:19:58 > 0:20:03- I'm going to create this into a hair and beauty salon.- Really?- Yes.

0:20:03 > 0:20:06- And how do you two know each other? - Long story.

0:20:06 > 0:20:10Becky was my student when I was teaching. She was my star student.

0:20:10 > 0:20:13We worked together at the previous salon where Becky's working now.

0:20:13 > 0:20:17I now own a salon and she works for me one day a week

0:20:17 > 0:20:19and this come up and I knew she was looking for a salon

0:20:19 > 0:20:21so this was perfect for Becky.

0:20:21 > 0:20:23So, you've bought this.

0:20:23 > 0:20:26This is going to be your business but Becky's going to run it?

0:20:26 > 0:20:29Yes. Me and my husband are just the landlords. This is her domain.

0:20:29 > 0:20:31We're going to look after the upstairs.

0:20:31 > 0:20:34- So, you're going to turn this into a hairdressers?- Yes.- How exciting.

0:20:34 > 0:20:37- Have you ever done anything like this before?- No.

0:20:37 > 0:20:40So, you're going to be creating a business from scratch here?

0:20:40 > 0:20:44- Exactly. Yeah.- So, Becky, how much are you loving your boss Tina?

0:20:44 > 0:20:48I mean, what a lovely person. She's bought you a business.

0:20:48 > 0:20:52She's one of my best friends and, yeah, she's been fantastic.

0:20:52 > 0:20:56What a great gesture to help her star student out

0:20:56 > 0:20:58with her first salon.

0:20:58 > 0:21:01But, for a place that would deal in makeovers,

0:21:01 > 0:21:05what sort of makeover for the place does Becky have in mind?

0:21:05 > 0:21:08I'm going to have some self-employed stylists

0:21:08 > 0:21:09and I'm also going to have a beautician.

0:21:09 > 0:21:13We are, sort of, going to go with the theme of golds and blacks

0:21:13 > 0:21:15and bring some wood effect into it.

0:21:15 > 0:21:17So, we are just, sort of,

0:21:17 > 0:21:19really working with different ideas at the moment.

0:21:19 > 0:21:22But, hopefully, it'll all come together in the end

0:21:22 > 0:21:25and it'll be a salon at the end of it.

0:21:25 > 0:21:27Have you thought about budget or spent any money yet?

0:21:27 > 0:21:29I've spent some money.

0:21:30 > 0:21:36My budget is 15,000 to get this looking into a salon.

0:21:36 > 0:21:39So, hopefully, we'll be under budget but we'll see.

0:21:39 > 0:21:42So, have involved are you going to be with the business

0:21:42 > 0:21:44or is this totally, you know, down to you?

0:21:44 > 0:21:47Basically, it is down to Becky.

0:21:47 > 0:21:50We are doing what they call a first fix.

0:21:50 > 0:21:54So, the floors, the plastering, ceilings, the lights.

0:21:54 > 0:21:57Getting the plumbing ready for Becky's basins to go in

0:21:57 > 0:21:59and the rest is down to Becky.

0:21:59 > 0:22:00Down to me.

0:22:00 > 0:22:04So, you're both going to be involved in this lovely joint venture.

0:22:04 > 0:22:06The business hopefully thriving downstairs

0:22:06 > 0:22:08and you're going to be landlady upstairs.

0:22:08 > 0:22:11So, what plans and ideas have you got for the flat above

0:22:11 > 0:22:13because it's a great property. It's very spacious.

0:22:13 > 0:22:15Yes, it's really good condition.

0:22:15 > 0:22:20It really just needs looking after, decorating.

0:22:20 > 0:22:23There's no major structural things to be done.

0:22:23 > 0:22:26There's double glazing in the windows. There's heating.

0:22:26 > 0:22:29So, it's really going to be quite easy

0:22:29 > 0:22:31to make it look really beautiful.

0:22:31 > 0:22:33In theory, it should be straightforward

0:22:33 > 0:22:37except that Tina's also planning to remove that woodchip.

0:22:37 > 0:22:41I can't guarantee that can and will be difficult.

0:22:41 > 0:22:45She has a budget of 17,000. Not only to renovate the maisonette

0:22:45 > 0:22:48but also for the first fix on the salon.

0:22:48 > 0:22:52Then, Becky has £15,000 to decorate and kit out the salon.

0:22:53 > 0:22:57The pair plan a six to eight week turnaround.

0:22:57 > 0:23:00It will be tight but what will be tougher for Tina

0:23:00 > 0:23:02is how she'll cope with losing her star stylist.

0:23:02 > 0:23:05I don't know how. I don't honestly know how.

0:23:05 > 0:23:08But she deserves this break and I know she'll do really well at it.

0:23:08 > 0:23:11So, how do you feel about that, Becky?

0:23:11 > 0:23:13I mean, how fabulous that you've met someone like Tina

0:23:13 > 0:23:16that's prepared to, you know, propel your career.

0:23:16 > 0:23:19I can't explain it. She's just been brilliant.

0:23:19 > 0:23:20She's been fantastic to me

0:23:20 > 0:23:23and she's supported me through the years of training

0:23:23 > 0:23:26and getting onto the shop floor and now to opening my own business.

0:23:26 > 0:23:28I couldn't ask for more.

0:23:28 > 0:23:32Girls, good luck with this project. Tina, good luck upstairs.

0:23:32 > 0:23:35- Becky, good luck downstairs. I hope it goes really well.- Thank you.

0:23:35 > 0:23:38- Thank you.- Thank you very much. - Thanks very much.

0:23:38 > 0:23:42So, star student Becky has been given an amazing chance

0:23:42 > 0:23:46by mentor Tina, who has got herself a great rental into the bargain.

0:23:46 > 0:23:48Join us later in the show

0:23:48 > 0:23:51to see if they manage this in six to eight weeks

0:23:51 > 0:23:53and how these fab investments are going.

0:23:54 > 0:23:59Coming up, it's rare on this program that I visited property

0:23:59 > 0:24:01as spick-and-span is this bungalow in West Yorkshire.

0:24:01 > 0:24:03This is great.

0:24:05 > 0:24:07We return to this commercial unit in Kent

0:24:07 > 0:24:11to see if Becky's dream of her own beauty salon has come true.

0:24:11 > 0:24:15Everything's turned out just how I imagined it.

0:24:15 > 0:24:19But first, let's find out if John and Michaela's

0:24:19 > 0:24:22new-build in Staffordshire has impressed the experts.

0:24:24 > 0:24:26I think they've built a very good property here.

0:24:26 > 0:24:29Back now to Northwood, Stoke-on-Trent where,

0:24:29 > 0:24:30earlier in the programme,

0:24:30 > 0:24:35John and his partner Michaela paid £20,000 for this building plot.

0:24:35 > 0:24:40It had outline planning permission for a two-bedroom property.

0:24:40 > 0:24:42John's worked in the construction industry for many years

0:24:42 > 0:24:44and has his own company

0:24:44 > 0:24:49but this was the first place he was going to build as an investment.

0:24:49 > 0:24:53- What attracted you to the idea of doing a self build?- Me.- You?

0:24:53 > 0:24:55- I tell people that.- Yes.

0:24:55 > 0:24:57I just kept suggesting that he's always building,

0:24:57 > 0:25:00that maybe you could start building for yourself.

0:25:00 > 0:25:03I'm always building for other people. That's what I've done all my life.

0:25:03 > 0:25:05You know, for main contractors, stuff like that.

0:25:05 > 0:25:08So, Michaela's kind of pushed me to say,

0:25:08 > 0:25:10"Well, you know, call out there, do it yourself."

0:25:12 > 0:25:15John intended to submit revised plans to include a third bedroom

0:25:15 > 0:25:18and, as his office was just round the corner,

0:25:18 > 0:25:22he planned to project manage the build on a daily basis.

0:25:26 > 0:25:28Well, ten months have passed

0:25:28 > 0:25:31and the plot of land now houses this detached property.

0:25:33 > 0:25:37It continues the line of the terraced houses on the street.

0:25:37 > 0:25:40It has the added benefit of off-street parking

0:25:40 > 0:25:44plus a covered carport.

0:25:44 > 0:25:46Handy on a wet day.

0:25:49 > 0:25:52Inside, the living room that runs the width of the house

0:25:52 > 0:25:55is surprisingly large.

0:25:56 > 0:26:00And beyond the staircase, the kitchen diner

0:26:00 > 0:26:03extends to the side behind the covered parking area.

0:26:04 > 0:26:07Well, this is the kitchen diner.

0:26:09 > 0:26:14We are quite over the moon with this cos it's lovely spacious area.

0:26:14 > 0:26:17We've also got a downstairs toilet here.

0:26:17 > 0:26:22We added some green tiles just to add a bit of wow factor.

0:26:22 > 0:26:26And then the double doors there, that go out into the garden.

0:26:26 > 0:26:29The outline plans for the house had the bathroom on the ground floor

0:26:29 > 0:26:31between the kitchen and living room.

0:26:31 > 0:26:35That's rather unusual and one of the first things

0:26:35 > 0:26:38John and Michaela decided to change.

0:26:38 > 0:26:41Initially, it was supposed to be a replica of a terraced house,

0:26:41 > 0:26:44which we felt was a little bit strange.

0:26:44 > 0:26:48So, John saw an opportunity to add an upstairs bathroom.

0:26:48 > 0:26:50There was no objection to John's extension

0:26:50 > 0:26:52at the side of the house

0:26:52 > 0:26:56as he designed it to be within the accepted line of sight regulations

0:26:56 > 0:26:59for the neighbouring properties.

0:26:59 > 0:27:02It meant that the bathroom could be built up on the first floor

0:27:02 > 0:27:03above the carport.

0:27:04 > 0:27:08Oh, this is our favourite room. This is the bathroom. Huge room.

0:27:08 > 0:27:11We are really pleased with this.

0:27:11 > 0:27:14Double ended bath. Skylight windows.

0:27:14 > 0:27:18We imagine lying in the bath, looking at the stars.

0:27:18 > 0:27:20Really, really pleased.

0:27:20 > 0:27:23I think it's turned out much better than even we expected.

0:27:29 > 0:27:32In the end, John decided against adding a third bedroom,

0:27:32 > 0:27:35preferring to stick with two good-sized doubles.

0:27:35 > 0:27:40So, how hard was it to change the original plans for the house?

0:27:40 > 0:27:44Not at all, really, because we only had outline planning permission

0:27:44 > 0:27:47anyway so when we submit proper plans,

0:27:47 > 0:27:51we added that on and we got the planning without any hiccups.

0:27:51 > 0:27:56The only restriction to John's plans was that his proposed garage

0:27:56 > 0:27:59under the bathroom couldn't have a door so that's why it's a carport.

0:28:01 > 0:28:04The planning permission stipulated block paving

0:28:04 > 0:28:08and arched brickwork which looks very smart.

0:28:08 > 0:28:11And John's been on hand to track the progress from day one

0:28:11 > 0:28:13so how much has the build cost?

0:28:16 > 0:28:19The budget has gone over.

0:28:19 > 0:28:23I costed it on the old plans which was 60,000.

0:28:24 > 0:28:27It's actually turned out at 70,300

0:28:27 > 0:28:34so, in total, with the land, it's cost us 90,300 to build.

0:28:34 > 0:28:36John and Michaela have an open day planned

0:28:36 > 0:28:39to show prospective buyers or tenants around.

0:28:41 > 0:28:44Have they got a preference between selling or letting?

0:28:44 > 0:28:47At the moment, possibly on the renting side

0:28:47 > 0:28:49because it's an asset to my company.

0:28:49 > 0:28:52Because we've got this, we can go to the bank and he will give us

0:28:52 > 0:28:55money for our next development.

0:28:56 > 0:29:02Time to get some expert property advice from two local estate agents.

0:29:02 > 0:29:04I particularly like the size of the kitchen. I think,

0:29:04 > 0:29:08at the moment, people do prefer good-sized living areas/kitchens

0:29:08 > 0:29:10and that's exactly what you get.

0:29:10 > 0:29:12I think they've built a very good property here.

0:29:12 > 0:29:15Modern throughout, good-sized and it'll appeal to all.

0:29:15 > 0:29:18But, do the experts see a rental opportunity here?

0:29:18 > 0:29:21I think this property would rent extremely easily.

0:29:21 > 0:29:25I would expect an income in the region of £500 per calendar month.

0:29:25 > 0:29:27If the owners opt to lease this property,

0:29:27 > 0:29:30I'd put it on the market for £575 per calendar month.

0:29:30 > 0:29:32So, could those figures,

0:29:32 > 0:29:37which would give an annual rental yield of around 6.5 to 7.5%,

0:29:37 > 0:29:39work out for the couple?

0:29:39 > 0:29:41Yes, that sounds good.

0:29:41 > 0:29:44I was hoping between 500 and 600 a month, so, yeah.

0:29:44 > 0:29:46That's what I thought.

0:29:48 > 0:29:49What about the resale value?

0:29:49 > 0:29:53Is the house now worth more than the £90,300

0:29:53 > 0:29:55John and Michaela have invested?

0:29:57 > 0:30:00I would estimate a resale value in the region of

0:30:00 > 0:30:01£110,000 to 115,000.

0:30:01 > 0:30:06I would put this property on the market for £124,950.

0:30:07 > 0:30:12That valuation range of between 110 and nearly 125,000

0:30:12 > 0:30:14would produce a gross profit before fees and expenses

0:30:14 > 0:30:19of around £19,500 and £35,000.

0:30:19 > 0:30:25So, is John more tempted by the resale or rental value?

0:30:25 > 0:30:31I'm open to both but certainly, you know, if we got 120 on the table,

0:30:31 > 0:30:34we'd have to seriously consider it because it's, you know,

0:30:34 > 0:30:36it's a £30,000 profit.

0:30:36 > 0:30:40Over the years, John has built many properties for clients

0:30:40 > 0:30:44but this is the first one he's built as an investment for himself

0:30:44 > 0:30:47so, after all the hard work, is it hard to part with it?

0:30:47 > 0:30:48I'd be a bit disappointed, yeah,

0:30:48 > 0:30:53because it's our first development and its very near to home.

0:30:53 > 0:30:56So, you know, it is a little bit of our baby, I suppose.

0:31:01 > 0:31:05Welcome to west Yorkshire were, today, I'm in the town of Ossett.

0:31:06 > 0:31:10Its fortunes were founded and not only on mining coal

0:31:10 > 0:31:12but also in the shoddy industry.

0:31:12 > 0:31:16Yes, you heard me right, the shoddy industry.

0:31:16 > 0:31:18That is part of the process

0:31:18 > 0:31:21of extracting valuable wool from old rags.

0:31:21 > 0:31:24So, I wonder, will the property I'm here to see be shoddy

0:31:24 > 0:31:28and can it be transformed into a thing of value?

0:31:30 > 0:31:34MUSIC: "Rags to Riches" by Tony Bennett

0:31:37 > 0:31:39So, what do you value more,

0:31:39 > 0:31:41peace and quiet or easy access to a property?

0:31:41 > 0:31:44Well, you might have to make a decision in this case

0:31:44 > 0:31:48because the bungalow I'm here to see is literally up this little pathway.

0:31:48 > 0:31:50If you want to park your car, it's down there.

0:31:50 > 0:31:53But that does mean, as I said, it's quite quiet which is good.

0:31:53 > 0:31:56And this is it. From the outside it looks absolutely lovely.

0:31:56 > 0:32:00Two bedrooms and a guide price of 90 to 100,000 quid.

0:32:04 > 0:32:07The front garden is trim, tidy and a good size

0:32:07 > 0:32:10as is the back garden where there's a garage

0:32:10 > 0:32:13so you won't have to struggle with your shopping bags

0:32:13 > 0:32:15when you come home from the supermarket.

0:32:17 > 0:32:20As for the bungalow, it looks trim and tidy too.

0:32:20 > 0:32:23I can see double glazing and there's no visible damage.

0:32:23 > 0:32:26So far, so good.

0:32:26 > 0:32:29I always think that if a garden has been well maintained

0:32:29 > 0:32:31then the inside should be also.

0:32:34 > 0:32:36So, does it hold true in this instance?

0:32:36 > 0:32:38Well, first glance, yeah, I think it does.

0:32:38 > 0:32:41Really nice condition the moment you walk through the door.

0:32:41 > 0:32:44Clean paintwork, nice choice of, sort of, creams and whites

0:32:44 > 0:32:46which always gives a sort of elegant feel.

0:32:46 > 0:32:48So, in through the front door,

0:32:48 > 0:32:52you've got this little corridor area here. Bathroom there.

0:32:52 > 0:32:55Again, maybe the units could do with replacing

0:32:55 > 0:32:56but perfectly serviceable as they are.

0:32:56 > 0:32:58Living room over that way.

0:32:58 > 0:33:01Again, some nice features. The dado rail, the...

0:33:01 > 0:33:02It's just, it's lovely.

0:33:02 > 0:33:05And then through into the kitchen. You know, 100% brilliant.

0:33:05 > 0:33:08I mean, perfectly serviceable as it is.

0:33:08 > 0:33:13Units - maybe they're not 2012 but who cares. Nice cooker.

0:33:13 > 0:33:17It just has a really nice feel to it. Central heating.

0:33:17 > 0:33:19Through this way, then.

0:33:19 > 0:33:21Bedroom there.

0:33:21 > 0:33:23It kind of gets a bit weird when you come into this room

0:33:23 > 0:33:27because, I guess, this is where you might expect a second bedroom to be.

0:33:27 > 0:33:28Instead, you got stairs up to...

0:33:28 > 0:33:30Well, we'll explore that in a minute.

0:33:30 > 0:33:34And then, through to this absolutely glorious conservatory

0:33:34 > 0:33:36on the rear of the property.

0:33:36 > 0:33:38Lots of light flooding in here. Doors to the garden.

0:33:38 > 0:33:41The only thing I'd say you might want to consider is -

0:33:41 > 0:33:43it doesn't work particularly well for me -

0:33:43 > 0:33:46this window here which is actually the bedroom.

0:33:46 > 0:33:49I'd swap the property around. Maybe put the bedroom on the front,

0:33:49 > 0:33:51put the living room on the back. Then have a nice set of

0:33:51 > 0:33:55French doors here, leading into the garden and then it works perfectly.

0:33:55 > 0:33:59But, I mean, for starters, this is great.

0:34:05 > 0:34:08It's rare that I visit an auction property in better condition

0:34:08 > 0:34:12than many put up for sale in the normal way.

0:34:12 > 0:34:15This bungalow has been well cared for.

0:34:15 > 0:34:17It's just a matter of taste and budget

0:34:17 > 0:34:20whether you'd want to update the decor or not.

0:34:22 > 0:34:24The conservatory is a big bonus.

0:34:24 > 0:34:28Upstairs is a dormer bedroom.

0:34:28 > 0:34:30As I am a glass half-full kind of guy,

0:34:30 > 0:34:33I'm going to say that the second bedroom is a small double

0:34:33 > 0:34:36rather than a large single.

0:34:36 > 0:34:40But there's a possibility of adding another bedroom up here.

0:34:43 > 0:34:47An added bonus is over this side of the upstairs.

0:34:47 > 0:34:51Somebody's obviously thought about what I'm going to suggest already

0:34:51 > 0:34:55because there's a door here which leads to this large,

0:34:55 > 0:34:57basically, boarded loft area.

0:34:57 > 0:34:59But, obviously, you might want to consider

0:34:59 > 0:35:02putting another dormer in this side, creating a pretty large bedroom.

0:35:02 > 0:35:04Possibly with an ensuite.

0:35:04 > 0:35:07That would all come down to economics -

0:35:07 > 0:35:10how much it would cost to do it, whether or not it's worth it.

0:35:10 > 0:35:13I mean, if you're looking to live in it, maybe, as a family home,

0:35:13 > 0:35:16that extra space could definitely come in handy.

0:35:16 > 0:35:18In terms of value, it might add to the property.

0:35:18 > 0:35:20Again, talk to estate agents,

0:35:20 > 0:35:22find out costs versus return on investment

0:35:22 > 0:35:25and then make your decision.

0:35:25 > 0:35:26And here's the very man to help.

0:35:26 > 0:35:30We asked the local estate agent for his opinion on this bungalow

0:35:30 > 0:35:34which had a guide price of £90,000 to £100,000.

0:35:38 > 0:35:41I think upstairs has great potential to create further bedrooms

0:35:41 > 0:35:43which would enhance the saleability

0:35:43 > 0:35:45and profitability of the property.

0:35:45 > 0:35:48I think attention should be given to that area to maybe look at

0:35:48 > 0:35:50expanding the accommodation.

0:35:51 > 0:35:54So, this local property expert believes it would be

0:35:54 > 0:35:58financially beneficial to add an extra bedroom.

0:35:58 > 0:36:02How much could this place achieve with its current layout, if sold on?

0:36:02 > 0:36:06If you put the property on the market to sell in today's market,

0:36:06 > 0:36:08I'd suggest an asking price of £125,000.

0:36:09 > 0:36:12And if you added accommodation upstairs?

0:36:12 > 0:36:15If you added an extra bedroom and an ensuite to the loft space,

0:36:15 > 0:36:18you're adding between £15,000 and £25,000

0:36:18 > 0:36:20on to the value of the property,

0:36:20 > 0:36:22depending, obviously, on quality and condition.

0:36:23 > 0:36:25And rental valuations?

0:36:25 > 0:36:28If the property was to be put on the rental market,

0:36:28 > 0:36:31we'd expect £500 per calendar month in its present condition.

0:36:31 > 0:36:34With the addition of an extra bedroom and ensuite,

0:36:34 > 0:36:38that price would increase to £550 to £575 per calendar month.

0:36:39 > 0:36:43Well, this is a really lovely little bungalow

0:36:43 > 0:36:44and I can't find anything wrong with it.

0:36:44 > 0:36:47It just goes to show, if you keep your eyes peeled,

0:36:47 > 0:36:50there really are some fantastic opportunities at the auction.

0:36:50 > 0:36:53Let's see who spotted it when it went under the hammer.

0:36:56 > 0:36:58£80,000, ladies and gentlemen. It must be worth 80.

0:36:58 > 0:37:01Thank you very much. We are in at £80,000.

0:37:01 > 0:37:03Got you at eight. At £80,000.

0:37:03 > 0:37:06And I'll take it in twos, if I may. At £80,000.

0:37:06 > 0:37:1082, 84. At 86, 88, 90.

0:37:10 > 0:37:14Shake of the head. £88,000. Looking for 90 now.

0:37:14 > 0:37:1689. And 90. No?

0:37:16 > 0:37:18At 89,000.

0:37:18 > 0:37:2289,000. On the wall at 89, looking for 90 now.

0:37:22 > 0:37:2490. £90,000.

0:37:24 > 0:37:26It's against you now.

0:37:26 > 0:37:31£90,000. I'm going to sell. Take half from anywhere?

0:37:31 > 0:37:36No? So, £90,000 then, for the first time. 90,000 for the second.

0:37:36 > 0:37:40Congratulations, sir, £90,000.

0:37:40 > 0:37:45It was Danny who made the successful bid of £90,000.

0:37:45 > 0:37:49That was bang on the low end of the guide price. Fantastic.

0:37:51 > 0:37:55Danny has renovated and sold on six properties previously

0:37:55 > 0:37:57and is financing the purchase of this bungalow

0:37:57 > 0:38:00with the profits from his past projects.

0:38:00 > 0:38:04So, I reckon he'll be overjoyed with the low purchase price here.

0:38:05 > 0:38:07He also works as a singer

0:38:07 > 0:38:12so you might say he bought this place for a song.

0:38:20 > 0:38:25- Danny, great to meet you.- Thank you. - Congratulations.- Thanks very much.

0:38:25 > 0:38:28- Great little bungalow. - Yeah, it's not bad.- Not bad?

0:38:28 > 0:38:32Some people would walk in here and think, "This is amazing."

0:38:32 > 0:38:35- Yeah, if you're in your 80s. - Oh, come on. No.

0:38:35 > 0:38:39It's dated. But it's tidy.

0:38:39 > 0:38:42- Why did you want to buy it? - I'm from the area.

0:38:42 > 0:38:44I was, basically, told about it.

0:38:44 > 0:38:46My brother-in-law walked past it and saw a sign

0:38:46 > 0:38:48and just really fancied it.

0:38:48 > 0:38:52- Right. Is it something you do? - Yeah. This is my sixth project now.

0:38:52 > 0:38:57It's not what I do full-time but it's just a part-time ambition.

0:38:57 > 0:39:00So, what to you do when you're not doing this?

0:39:00 > 0:39:02Well, my job, my actual job is I'm a singer.

0:39:02 > 0:39:03Oh, great.

0:39:03 > 0:39:05Yeah. So, nothing glamorous.

0:39:05 > 0:39:07I work on the club circuit.

0:39:07 > 0:39:08Really? What kind of stuff do you sing?

0:39:08 > 0:39:10It's just general middle-of-the-road stuff.

0:39:10 > 0:39:13If you ever try to sing what you really want to sing,

0:39:13 > 0:39:14they just look at you.

0:39:14 > 0:39:15What would you like to sing?

0:39:15 > 0:39:18I'd like to sing jazz songs - Jamie Cullum, Michael Buble.

0:39:18 > 0:39:21But, you know, it's not really the done thing.

0:39:21 > 0:39:24So, what are the aspirations on the singing front?

0:39:24 > 0:39:26None now, to be honest with you. I've got to the time

0:39:26 > 0:39:30- where I hit mid-30s and I had all the aspirations... - Past it then(!)- ..when I as younger.

0:39:30 > 0:39:32- As a singer, you are.- No.

0:39:32 > 0:39:36I tried it when I was younger. I went to stage school etc.

0:39:36 > 0:39:39Now I realise that just to get paid a little bit of money

0:39:39 > 0:39:42for doing that, you know, on the side, it's quite enjoyable

0:39:42 > 0:39:45but this is really where I find myself drawn to now.

0:39:45 > 0:39:49You can find me singing while I'm painting and that's about it, really.

0:39:49 > 0:39:53- Do you?- Yeah.- Do you really sing as you paint?- Yeah.- Fantastic.

0:39:56 > 0:39:59I've heard of whistling while you work but I wonder if I'll be

0:39:59 > 0:40:02singing Danny's praises when he's finished with this renovation.

0:40:04 > 0:40:06So, what's the kind of budget for what you're going to do here?

0:40:06 > 0:40:08For here to start off with,

0:40:08 > 0:40:12I think my budget is going to be between £2,000 to £5,000.

0:40:12 > 0:40:15After that, it could rise to 15,000,

0:40:15 > 0:40:19which would be an extra bedroom upstairs,

0:40:19 > 0:40:21French doors into the conservatory,

0:40:21 > 0:40:24there's obviously artex and stuff like that

0:40:24 > 0:40:27that would really like to come down.

0:40:27 > 0:40:29There is an option just to sell it on,

0:40:29 > 0:40:31because you got a great price, didn't you?

0:40:31 > 0:40:34Yes, I did. And to be honest with you, it is very tempting.

0:40:34 > 0:40:38But for saleability, I think to spend the extra few thousand pounds

0:40:38 > 0:40:41is probably going to help it sell a lot quicker

0:40:41 > 0:40:43and it will take me a matter of weeks.

0:40:43 > 0:40:48'Danny plans to do up and sell on this property.

0:40:48 > 0:40:51'Updating the decor may not add significant value,

0:40:51 > 0:40:54'but in a slow market could help it sell faster.

0:40:54 > 0:40:57'However, I think it could be worth considering simply leaving it

0:40:57 > 0:41:01'as it is and putting it back up for sale on the open market.'

0:41:04 > 0:41:06So, the future for you then?

0:41:06 > 0:41:08The next one I want to do is build, so I've worked my way up now

0:41:08 > 0:41:14where I've got quite a big pot of funds from when I've renovated.

0:41:14 > 0:41:18I've not, this is the only property that I've not had to lend money for,

0:41:18 > 0:41:21which obviously I'm quite happy about.

0:41:21 > 0:41:24It's all just sheer profit now and I'll go to the next project,

0:41:24 > 0:41:25I'd like to get some land and build.

0:41:25 > 0:41:27- Oh wow. From scratch?- From scratch.

0:41:27 > 0:41:32- Digging foundations and building bricks?- I won't be doing that!

0:41:32 > 0:41:35I'll be doing the bits inside, but obviously, you know,

0:41:35 > 0:41:37I would like to build my next one.

0:41:37 > 0:41:39Listen, congratulations, Danny. Great to meet you.

0:41:39 > 0:41:40- Cheers.- Good luck with it.

0:41:40 > 0:41:43- Thanks.- We look forward to seeing how you get on.- Great.

0:41:47 > 0:41:51Well, it seems Danny has chosen really well with this property.

0:41:51 > 0:41:54Whatever he decides to do in terms of renovations,

0:41:54 > 0:41:55I think he'll make money.

0:41:55 > 0:41:59But is it really worth making the song and dance

0:41:59 > 0:42:01and doing the whole kit and caboodle,

0:42:01 > 0:42:05or would a lick of paint hit the right note?

0:42:05 > 0:42:07You can find out later in the show.

0:42:11 > 0:42:14Well, work should be well underway on our properties by now

0:42:14 > 0:42:17- because there's certainly been lots of time to do it.- There has.

0:42:17 > 0:42:19But Martin, will there be brick dust all over the place,

0:42:19 > 0:42:23ladders everywhere, or will the properties be looking fantastic?

0:42:23 > 0:42:25Let's find out.

0:42:27 > 0:42:31'We head back to Queensbury now on the Isle of Sheppey in Kent

0:42:31 > 0:42:34'and this corner property with a ground floor commercial unit

0:42:34 > 0:42:37'and two bed maisonette above.

0:42:37 > 0:42:41'It was bought at auction for £104,000 by Tina

0:42:41 > 0:42:45'and her husband, Colin, as an investment.

0:42:45 > 0:42:49'For Tina, this was going to be her first step in property development,

0:42:49 > 0:42:52'but for her friend, and star student Becky,

0:42:52 > 0:42:56'this was also an opportunity to step out on her own.'

0:42:56 > 0:42:58So, you've bought this.

0:42:58 > 0:43:00This is going to be your business but Becky's going to run it.

0:43:00 > 0:43:03Me and my husband are just the landlord. This is her domain.

0:43:03 > 0:43:05We're going to look after the upstairs.

0:43:05 > 0:43:07Becky, what's your involvement with this?

0:43:07 > 0:43:12- I'm going to create this into a hair and beauty salon.- Really?- Yes.

0:43:12 > 0:43:16'What a great chance for Becky to get her own business going

0:43:16 > 0:43:20'and a lovely gesture from Tina to help start it up.

0:43:20 > 0:43:23'We return just over two months later

0:43:23 > 0:43:24'to see if Tina and Becky

0:43:24 > 0:43:27'had got their places looking beautiful.'

0:43:35 > 0:43:38'Well, the shop front looks great,

0:43:38 > 0:43:42'but will the interior be a cut above the rest?'

0:43:46 > 0:43:48'What a difference!

0:43:48 > 0:43:52'Wow, the new salon is now up and running,

0:43:52 > 0:43:53'looking stylish and smart.

0:43:53 > 0:43:56'At the rear, a stud wall has split the old office space

0:43:56 > 0:44:01'to create a beauty room with a new kitchen also installed.

0:44:03 > 0:44:05'But back in the salon, well, I'll leave it to Becky

0:44:05 > 0:44:09'to do the waxing lyrical on the beauty of the beauty parlour.'

0:44:12 > 0:44:16I started the salon with a lovely chandelier,

0:44:16 > 0:44:18which was my main inspiration just to begin with.

0:44:18 > 0:44:22I then worked over to the mirrors and obviously the sign positions,

0:44:22 > 0:44:25which have an important part to play in the salon.

0:44:25 > 0:44:28We then got a lovely seating area for clientele to wait

0:44:28 > 0:44:30before their treatment.

0:44:30 > 0:44:34We've then got our basins, for shampooing and removing colour

0:44:34 > 0:44:37and then I'm going to finish the salon with the lovely nail bar.

0:44:37 > 0:44:42I feel that the actual colour scheme of the salon's worked really well.

0:44:42 > 0:44:46We started with one little bit of leopard print and that's

0:44:46 > 0:44:50evolved into the golds, blacks and everything that you see before you.

0:44:55 > 0:44:59'Becky has certainly nailed down the style of the salon,

0:44:59 > 0:45:03'but the attraction of this beauty parlour isn't just skin deep.

0:45:03 > 0:45:06'I love that the ground floor has been replastered,

0:45:06 > 0:45:09'it's had a full rewire, a new boiler and plumbing system installed

0:45:09 > 0:45:11'to cope with the demands of the salon

0:45:11 > 0:45:14'and the floor has been re-tiled.

0:45:14 > 0:45:18# That's what makes it beautiful! #

0:45:18 > 0:45:20'I'm really pleased. It's just as I imagined it.

0:45:20 > 0:45:23'There's a few things we've had to change',

0:45:23 > 0:45:24but it's turned out as I imagined it.

0:45:24 > 0:45:28'Well done to Becky for getting her finish.

0:45:28 > 0:45:30'But let's not forget Tina's maisonette.

0:45:34 > 0:45:37'The main room is now a lovely living space.

0:45:38 > 0:45:41'And they've kept the same units in the kitchen,

0:45:41 > 0:45:45'but with new tiling and appliances, it just feels brand-new.

0:45:45 > 0:45:49'Which is exactly what the bathroom suite is,

0:45:49 > 0:45:51'modern and beautifully finished off.

0:45:51 > 0:45:54'The bedrooms are also beautifully renovated

0:45:54 > 0:45:56'and Tina's already got a tenant in.

0:45:56 > 0:45:59'But despite no structural changes needed here,

0:45:59 > 0:46:02'the renovation wasn't straightforward for Tina.'

0:46:02 > 0:46:05'It needed rewiring, all the flooring.'

0:46:05 > 0:46:10The wood chip took three weeks to take off. That was major.

0:46:10 > 0:46:12'An added bonus is the rooftop terrace...

0:46:14 > 0:46:17'..which overlooks the beauty salon's lovely new yard.

0:46:17 > 0:46:21'And while Tina may have struggled with the woodchip,

0:46:21 > 0:46:25'Becky's biggest task was staffing her new salon.'

0:46:26 > 0:46:30'It's very hard to find good, reliable staff.'

0:46:30 > 0:46:33But I think I've chosen well now.

0:46:33 > 0:46:36'And with the salon having been open for only one day so far,

0:46:36 > 0:46:40'it seems the staff already have their hands full.

0:46:40 > 0:46:43# Lipstick, powder and paint

0:46:43 > 0:46:44# Lipstick, powder and paint

0:46:44 > 0:46:48# Lipstick, powder and paint

0:46:48 > 0:46:51# Is you is, or is you 'aint? #

0:46:51 > 0:46:53'Becky is renting the salon from Tina

0:46:53 > 0:46:56'but while this is a business arrangement,

0:46:56 > 0:46:59'there's still a strong bond of friendship between the two.'

0:46:59 > 0:47:01I might be working with Tina again.

0:47:01 > 0:47:04I'm going to miss her dearly but hopefully I'll be able

0:47:04 > 0:47:07to take on her skills and her experience that I've gained

0:47:07 > 0:47:11and my business will be as successful as her business.

0:47:11 > 0:47:15It's a brilliant start for Becky. It's all what she needed and wanted.

0:47:15 > 0:47:19And I think with the shop and the flat above,

0:47:19 > 0:47:21it's been a good buy all round.

0:47:21 > 0:47:25'The salon and maisonette renovations were completed

0:47:25 > 0:47:27'within their two-month schedule

0:47:27 > 0:47:30'and Becky managed to kit out the salon on her 15 grand budget.

0:47:30 > 0:47:35'How did Tina's £17,000 budget hold-up?'

0:47:35 > 0:47:39'The budget went slightly over.

0:47:39 > 0:47:42'We spent 24,000 in total.'

0:47:42 > 0:47:44But for both, for the salon, first fixing

0:47:44 > 0:47:47and for the maisonette, we did 24,000.

0:47:47 > 0:47:53'Well, add that to Tina's and Colin's £104,000 purchase price

0:47:53 > 0:47:56'and their total outlay is 128 grand.

0:47:56 > 0:47:59'Time to find out from two local estate agents

0:47:59 > 0:48:01'if it's money well spent.'

0:48:01 > 0:48:03First impressions coming back today since last time,

0:48:03 > 0:48:05the property's really turn round.

0:48:05 > 0:48:07'They've done absolutely amazing with it.

0:48:07 > 0:48:09Refurbed it from top to bottom.

0:48:09 > 0:48:13Both the flat and the commercial premises look absolutely stunning.

0:48:13 > 0:48:15They've really make good use of all the space,

0:48:15 > 0:48:17the garden outside is fantastic.

0:48:17 > 0:48:20And I think it will be really successful in this position.

0:48:20 > 0:48:25'Tina and Colin have spent 128,000 on the property.

0:48:25 > 0:48:28'That's not including Becky's 15 grand shop refit.

0:48:28 > 0:48:32'So what could it sell on value be?'

0:48:32 > 0:48:34I would look at a value on the property

0:48:34 > 0:48:38of between £140,000 and £155,000.

0:48:38 > 0:48:41I would value the property at around £150,000

0:48:41 > 0:48:43in the current market.

0:48:43 > 0:48:46'Those valuations could give Tina a gross profit

0:48:46 > 0:48:49'of between 12 and 27,000.'

0:48:49 > 0:48:52That's actually more than what I thought, actually.

0:48:52 > 0:48:55- Yes.- Really, really good. - Yes, it is good.- Yes.

0:48:55 > 0:48:58'The estate agents reckon the combined rental value

0:48:58 > 0:49:01'of the flat and salon together could reach approximately

0:49:01 > 0:49:06'£1,200, to £1,300 per calendar month.

0:49:06 > 0:49:11'That's a whopping yield of between 11 and 12%.

0:49:11 > 0:49:16'In fact, Tina and her husband Colin are getting £390 per calendar month

0:49:16 > 0:49:21'from Becky in the salon and £575 per month for the maisonette.'

0:49:25 > 0:49:29'Well, that's a yield of 9%, which they're more than happy with,

0:49:29 > 0:49:32'not least because they're helping Becky

0:49:32 > 0:49:34'with her first business venture.'

0:49:34 > 0:49:37It's such an achievement, such an achievement.

0:49:37 > 0:49:39- It's lovely.- It feels really, really good.

0:49:39 > 0:49:42I can almost feel your bubbly energy

0:49:42 > 0:49:45when you're down there, buzzing around and it's just lovely.

0:49:45 > 0:49:46- I feel on cloud nine.- Yes.

0:49:50 > 0:49:55'Let's make our way back to West Yorkshire and the town of Ossett.

0:49:56 > 0:49:58'When I viewed this bungalow,

0:49:58 > 0:50:01'it had a guide price of between 90 and 100,000.

0:50:03 > 0:50:06'The interior was in very good condition indeed.

0:50:08 > 0:50:09'Decor may have been dated,

0:50:09 > 0:50:12'but there was central heating, double glazing

0:50:12 > 0:50:17'and both the kitchen and bathroom were in absolutely tip top shape.

0:50:17 > 0:50:21'There was also the potential to add a third bedroom

0:50:21 > 0:50:23'in the upstairs conversion.

0:50:25 > 0:50:29'The property was purchased by property developer

0:50:29 > 0:50:32'and professional singer, Danny for £90,000.

0:50:32 > 0:50:36'He was happy with that price,

0:50:36 > 0:50:38'so you might say he picked it up for a song.'

0:50:38 > 0:50:40# And I'm feeling...

0:50:42 > 0:50:44# ..Good. #

0:50:45 > 0:50:48- Great little bungalow. - Yes, it's not bad...- Not bad?

0:50:48 > 0:50:52Lots of people would walk in here and think, this is amazing!

0:50:52 > 0:50:56- Yes, if you were in your 80s... - Oh, come on! No!

0:50:56 > 0:50:59It's dated, but it's tidy.

0:51:00 > 0:51:03'Danny planned a modern makeover for the property.

0:51:03 > 0:51:06'I thought he should simply sell it on as it was,

0:51:06 > 0:51:09bearing in mind his low purchase price.

0:51:09 > 0:51:12'So, as far as this renovation is concerned,

0:51:12 > 0:51:16'will I be singing Danny's praises or booing him offstage?

0:51:16 > 0:51:20'Well, just over two months later, we're back.

0:51:22 > 0:51:27'The exterior is looking nice and bright, with a fresh lick of paint.

0:51:27 > 0:51:30'The bungalow's certainly looking more attractive from the outside,

0:51:30 > 0:51:33'but what about the inside?

0:51:33 > 0:51:36'A once dated decoration is now...

0:51:37 > 0:51:41'Well, still dated, but perfectly presentable.

0:51:41 > 0:51:44'Let's find out what's been happening, or not,

0:51:44 > 0:51:46'as the case may be from Danny.'

0:51:47 > 0:51:52'In the first instance, the idea was to make it more modern.'

0:51:52 > 0:51:56But to be honest with you, I've not really done much on this one.

0:51:56 > 0:52:01I sought some advice from some agents and they advised me just to give it

0:52:01 > 0:52:04a little bit of a tidy up and get it straight back on the market.

0:52:05 > 0:52:10'That estate agent's advice must have been music to Danny's ears,

0:52:10 > 0:52:14'as putting it on the resale market is exactly what he's done.'

0:52:14 > 0:52:17'The bungalow's been on the market two weeks

0:52:17 > 0:52:21'and I've had two viewings already. Both seemed quite interested',

0:52:21 > 0:52:23but unfortunately aren't in a position to move as yet

0:52:23 > 0:52:25because they have properties to sell.

0:52:27 > 0:52:31'Danny financed the purchase of this bungalow

0:52:31 > 0:52:33'with profits from his previous six projects.

0:52:33 > 0:52:36'So he does not have mortgage payments to meet,

0:52:36 > 0:52:38'meaning he's in no rush to sell.

0:52:40 > 0:52:42'However, while the name of the game

0:52:42 > 0:52:44'in property developing is to make money,

0:52:44 > 0:52:47'which I believe this bungalow will do for Danny,

0:52:47 > 0:52:51'he does miss the satisfaction that comes from renovating a place.'

0:52:53 > 0:52:55'The last ones that I've done',

0:52:55 > 0:53:00the first week has been completely ripping out kitchens, bathrooms.

0:53:00 > 0:53:02Everything's been completely gutted

0:53:02 > 0:53:07and this one... didn't even need to hoover.

0:53:07 > 0:53:13# Woo! My love is like a vacuum cleaner

0:53:13 > 0:53:17# Would you believe it keeps coming in... #

0:53:19 > 0:53:23'If Danny sells the bungalow at the price he is asking,

0:53:23 > 0:53:25'he'll have cleaned up without even having to clean up.

0:53:25 > 0:53:26'Brilliant.'

0:53:27 > 0:53:31'The only effort at renovation has been a lick of paint outside

0:53:31 > 0:53:33'and a tidy up of the garden.

0:53:36 > 0:53:38'So, with baited breath, let's find out

0:53:38 > 0:53:41'if he's got his budget licked too.'

0:53:43 > 0:53:45My budget so far is £90.

0:53:47 > 0:53:48MARTIN LAUGHS

0:53:48 > 0:53:52'So, add that £90 to Danny's purchase price of 90,000

0:53:52 > 0:53:58'and that gives him a total investment of £90,090.'

0:54:03 > 0:54:06'We asked two local estate agents for their opinion

0:54:06 > 0:54:10'on Danny's decision not to renovate this bungalow.'

0:54:10 > 0:54:12I think the decision not to do anything,

0:54:12 > 0:54:14why do something that doesn't need to be done?

0:54:14 > 0:54:17The property's clean, it's tidy, it's well presented,

0:54:17 > 0:54:20why spend money for the sake of it when it doesn't need to be spent?

0:54:20 > 0:54:23The property's perfectly acceptable as it is,

0:54:23 > 0:54:25and perfectly acceptable to back on the market to sell.

0:54:27 > 0:54:29I think for the market we're in at the moment,

0:54:29 > 0:54:31I think it gives it the perspective purchaser the opportunity

0:54:31 > 0:54:34to put their own individual stamp on the property, but I think from...

0:54:34 > 0:54:38a resale point, the condition of the property's fine.

0:54:38 > 0:54:41'If the property were to be put on the rental market,

0:54:41 > 0:54:45'how much do the agents believe it could achieve?'

0:54:46 > 0:54:51I think we should be able to achieve £595, to £625 per calendar month.

0:54:51 > 0:54:54A rental figure would be £550 per calendar month.

0:54:54 > 0:54:57'Those valuations would give Danny a yield

0:54:57 > 0:55:00'of between seven and 8.5%.

0:55:02 > 0:55:04'But he's already put the house up for sale.

0:55:04 > 0:55:06'So what figure should he aim for,

0:55:06 > 0:55:11'bearing in mind his total investment of just over £90,000?'

0:55:13 > 0:55:18'I would suggest an asking price of £119,950',

0:55:18 > 0:55:22to achieve somewhere in the region of £117,000.

0:55:22 > 0:55:24If it was put on the market for sale,

0:55:24 > 0:55:28I'd recommend an asking price of £124,950, just short of £125,000,

0:55:28 > 0:55:30which I feel is a realistic asking price for the property,

0:55:30 > 0:55:32given the current market conditions.

0:55:32 > 0:55:35'If Danny got those sort of amounts,

0:55:35 > 0:55:41'it would mean he makes a potential profit of between 27 and £35,000.

0:55:41 > 0:55:45'He's actually put the bungalow up for sale now at 124,000.

0:55:48 > 0:55:51'With all those figures in mind, is rental an option AT ALL?'

0:55:51 > 0:55:56My plans now are it's going to stay on the market for about eight weeks

0:55:56 > 0:55:59and then if it doesn't sell, it's going to go rented for 12 months

0:55:59 > 0:56:01and then back onto the market again.

0:56:04 > 0:56:08'Well, it's far from our traditional type of return visit.

0:56:08 > 0:56:12'But I think this is a prime example of how money

0:56:12 > 0:56:16'can be made at auctions, even in the current market conditions,

0:56:16 > 0:56:19'if you buy the right property at the right price.

0:56:19 > 0:56:22'So, what's next for Danny?'

0:56:22 > 0:56:25'I've already found my next property',

0:56:25 > 0:56:28so I'm hoping to move for that one very shortly.

0:56:29 > 0:56:35'Since filming, Danny's reduced the asking price to £119,950

0:56:35 > 0:56:39'and if he sells at that price, that would give him a pre-tax profit

0:56:39 > 0:56:43'of nearly £30,000 and that really would be something to sing about.

0:56:49 > 0:56:52Join us for more Homes Under The Hammer next time.

0:56:52 > 0:56:55Yes, Lucy and I will have lots more intriguing properties

0:56:55 > 0:56:57and enthusiastic buyers for you then.

0:56:57 > 0:56:58- See you.- Bye.

0:57:22 > 0:57:24Subtitles By Red Bee Media Ltd