0:00:00 > 0:00:03Hello! Despite tough market conditions,
0:00:03 > 0:00:06people still want a slice of the property action.
0:00:06 > 0:00:08And if you're prepared to take the plunge,
0:00:08 > 0:00:10auctions can be a great place to start.
0:00:10 > 0:00:14Yes. It can be fraught, it can be fantastic.
0:00:14 > 0:00:18But it's certainly worth giving it a go, buying your home under the hammer.
0:00:43 > 0:00:46Some lots are very popular at auction.
0:00:46 > 0:00:48Others go unsold.
0:00:48 > 0:00:51So the auction room can be a difficult place to conquer.
0:00:51 > 0:00:56Here are the properties that won the hearts of the buyers on today's show.
0:00:57 > 0:01:01This cottage in Devon has plenty to get excited about.
0:01:01 > 0:01:06Oh, boy, this doesn't disappoint. This winding staircase is absolutely charming.
0:01:07 > 0:01:10I've got a plan for these two flats in Ilford.
0:01:12 > 0:01:16It just needs a complete refurb. It needs some TLC. Put the love back!
0:01:17 > 0:01:21In Openshaw, Manchester, just getting into this top floor flat
0:01:21 > 0:01:23is the first challenge.
0:01:25 > 0:01:27That's a first!
0:01:29 > 0:01:31All of these properties sold at auction.
0:01:31 > 0:01:36We'll find out who bought them and what they paid for them when they went under the hammer.
0:01:39 > 0:01:43The name of this village is as quaint as it looks.
0:01:43 > 0:01:47Ipplepen in Devon, near Newton Abbot,
0:01:47 > 0:01:49just oozes history and a sense of permanence.
0:01:49 > 0:01:52So I hope that the auction lot that went under the hammer
0:01:52 > 0:01:54will be the cream of the crop.
0:01:55 > 0:01:59The property I'm here to see is exactly what you'd hope to find
0:01:59 > 0:02:01in a cute little Devon village like this.
0:02:01 > 0:02:07It's a two-bedroomed, listed, character cottage
0:02:07 > 0:02:10at a guide price of £79,000.
0:02:10 > 0:02:16Now, I'm already really excited because I think there might be an incredible fireplace downstairs.
0:02:16 > 0:02:18You know why? Look at that chimney!
0:02:28 > 0:02:32It certainly has loads of chocolate box charm,
0:02:32 > 0:02:35but how does it stack up on the inside?
0:02:35 > 0:02:37Fingers crossed!
0:02:39 > 0:02:40Wow!
0:02:41 > 0:02:43Fantastic!
0:02:43 > 0:02:47I think you'd probably call that an inglenook sort of.
0:02:47 > 0:02:48Maybe not completely.
0:02:48 > 0:02:52You've got these little bits on the side, probably where the bread oven went.
0:02:52 > 0:02:55Somebody's put a wood burning stove in there, a very practical thing to do.
0:02:55 > 0:02:57It means it can actually function as a fireplace.
0:02:57 > 0:03:00But what a fantastic centrepiece for the room.
0:03:00 > 0:03:04And the room itself, one big room downstairs is basically what you've got.
0:03:05 > 0:03:07But I like that, because often a cottage like this
0:03:07 > 0:03:11might feel quite cramped and claustrophobic.
0:03:11 > 0:03:16But the fact you've got one big space makes it, I don't know, liveable in.
0:03:16 > 0:03:19Lots of original beams, stuff like that.
0:03:19 > 0:03:20Looking good so far.
0:03:20 > 0:03:23Through to the kitchen.
0:03:23 > 0:03:25And, well, it's cute!
0:03:25 > 0:03:27A little bit more claustrophobic in here.
0:03:27 > 0:03:33But so much character. These little windows, the reveals on the windows.
0:03:33 > 0:03:36Obviously a few signs of damp here and there.
0:03:36 > 0:03:37You'd expect that.
0:03:37 > 0:03:43But as a starting point, this place does not disappoint. Oh, no.
0:03:45 > 0:03:48At the rear of the property there's a funny lean-to porch
0:03:48 > 0:03:52which is hardly in keeping with the cottage's Grade II listing,
0:03:52 > 0:03:55but it's a different story upstairs.
0:03:57 > 0:04:00Well, you'd hope for something with a bit of character when it came to the stairs
0:04:00 > 0:04:03and oh, boy, this doesn't disappoint.
0:04:03 > 0:04:06This winding staircase, absolutely charming.
0:04:06 > 0:04:08I have to say...
0:04:08 > 0:04:11Yeah, watch your head here and everywhere else.
0:04:11 > 0:04:14It's a big strange. That's lots of false walls
0:04:14 > 0:04:19which have been put in to separate out the rooms up here.
0:04:19 > 0:04:24But it's just incredible when you come up to this first floor.
0:04:25 > 0:04:29Ceiling bowed all over the place. Look at the thickness of the walls!
0:04:29 > 0:04:31It is what it is, isn't it?
0:04:31 > 0:04:35This amazing, old, higgledy-piggledy
0:04:35 > 0:04:38charming kind of cottage.
0:04:38 > 0:04:40It's very easy to get carried away
0:04:40 > 0:04:42with what this place is,
0:04:42 > 0:04:45but at some stage you are going to have to try and restore this,
0:04:45 > 0:04:48and that will open up all sorts of problems.
0:04:48 > 0:04:51Look at the way the ceiling here is all bowed.
0:04:51 > 0:04:54When you take that down, it's probably going to create all sorts of issues.
0:04:54 > 0:04:57Probably lath and plaster and because it's listed, it'll have to go back.
0:04:57 > 0:05:01As it's Grade II listed everything that's done will have to be approved and done by a specialist.
0:05:01 > 0:05:03It'll cost you a fortune.
0:05:04 > 0:05:06Do you care? No.
0:05:07 > 0:05:08No!
0:05:08 > 0:05:11- #- I don't care if the sun don't shine
0:05:11 > 0:05:14- #- I get my lovin' in the evening time
0:05:14 > 0:05:19- #- When I'm with my baby.- #
0:05:20 > 0:05:25Nope, I don't care that the tiny bathroom is dominated by an ugly water tank,
0:05:25 > 0:05:30or that the bathroom also leads to a bedroom that would be too cramped for a Hobbit!
0:05:30 > 0:05:32And I really, really don't care
0:05:32 > 0:05:35that it needs lots and lots of work.
0:05:35 > 0:05:39That guide price of 79,000 was very attractive
0:05:39 > 0:05:41but as a Grade II listed cottage,
0:05:41 > 0:05:43it will sadly be far from trouble free
0:05:43 > 0:05:46and it has no outside space.
0:05:46 > 0:05:48What does a local estate agent think?
0:05:48 > 0:05:51The property itself does need some work doing to it.
0:05:51 > 0:05:55It hasn't been renovated for quite some time,
0:05:55 > 0:05:58so it is in a basic condition where the kitchen and bathroom
0:05:58 > 0:06:01and the property itself needs to be done throughout.
0:06:02 > 0:06:05'So if you did the work,
0:06:05 > 0:06:07'what kind of rental could you get for the cottage?'
0:06:08 > 0:06:13Once renovated, I think this property would fetch about £650 per calendar month.
0:06:14 > 0:06:16'What about selling the place on?'
0:06:19 > 0:06:21If this property is done up to a good standard throughout,
0:06:21 > 0:06:25the resale value would be 165 to £170,000.
0:06:25 > 0:06:30Well, any property of this age is going to have its problems.
0:06:30 > 0:06:34But I think, in general, this place is pretty good.
0:06:34 > 0:06:38You know, whoever bought this wouldn't have been looking at the damp,
0:06:38 > 0:06:40or looking at the weird placement of the rooms.
0:06:40 > 0:06:44They would have just absolutely fallen in love with its charm.
0:06:44 > 0:06:48Who can blame them? Let's find out who bought it when it went under the hammer.
0:06:50 > 0:06:53Grade II listed, two-storey, two-bedroomed period cottage for modernisation.
0:06:54 > 0:06:56A proper cottage.
0:06:57 > 0:07:01Guide price is 79. We'll round that up to 80. Who'll start me at 80?
0:07:01 > 0:07:04Thank you. Good man. That's the way. 80 I've got.
0:07:04 > 0:07:06At 80. At 80,000. At 80.
0:07:06 > 0:07:0882. 83.
0:07:08 > 0:07:1384. 85.
0:07:13 > 0:07:1586 in purple at the back. 86.
0:07:15 > 0:07:1687. 88.
0:07:16 > 0:07:1989. 90. At 90.
0:07:19 > 0:07:22At 90. Here he goes again at 91.
0:07:22 > 0:07:24At 91. Need two from one of you.
0:07:24 > 0:07:25First one who says it... 92.
0:07:25 > 0:07:2893. At 93. 94.
0:07:28 > 0:07:3195. Coming back down to 96.
0:07:31 > 0:07:3397.
0:07:33 > 0:07:3698. 99.
0:07:36 > 0:07:37100.
0:07:37 > 0:07:39101 is you, sir.
0:07:39 > 0:07:41101.
0:07:41 > 0:07:43102. 103.
0:07:44 > 0:07:45104.
0:07:45 > 0:07:48105. 106.
0:07:48 > 0:07:51107. 108.
0:07:51 > 0:07:52109.
0:07:52 > 0:07:53110.
0:07:53 > 0:07:55Eleven.
0:07:56 > 0:08:00At 111 at the back. I'll take a half...
0:08:00 > 0:08:01111,500.
0:08:01 > 0:08:03112.
0:08:04 > 0:08:05112.
0:08:06 > 0:08:08112. Are you sure? OK.
0:08:08 > 0:08:11At 112, then, stood at the back in the purple t-shirt.
0:08:11 > 0:08:14He's got it at 1-1-2.
0:08:15 > 0:08:17Sir, yours. Well done.
0:08:19 > 0:08:22That successful bid of 112,000,
0:08:22 > 0:08:2533,000 over the guide price, came from Phil.
0:08:25 > 0:08:27Along with his wife, Donna,
0:08:27 > 0:08:30he runs a company selling decorative interiors.
0:08:30 > 0:08:32You know, furniture and stuff.
0:08:33 > 0:08:38I caught up with Phil at his purchase to find out his plans.
0:08:40 > 0:08:42- Phil, congratulations.- Thank you.
0:08:42 > 0:08:45I'm sure there's a lot of people must be very jealous of you!
0:08:45 > 0:08:48- Amazing place. - It's a lovely cottage.
0:08:48 > 0:08:51We've been looking for the best part of 18 months
0:08:51 > 0:08:53to find a little project like this.
0:08:53 > 0:08:56So we're quite pleased, actually.
0:08:56 > 0:08:58It ticks all the boxes. It's quite idyllic, really.
0:08:58 > 0:09:00Is this a place for you to live?
0:09:00 > 0:09:02No, we're probably not going to live here.
0:09:02 > 0:09:06But it's got masses of potential as a buy-to-let, as a holiday cottage,
0:09:06 > 0:09:10and we may use it - we've been asked by magazines
0:09:10 > 0:09:15if they want to come and photograph our stuff in the cottage.
0:09:15 > 0:09:20- Oh!- So that's quite exciting, perhaps as another dimension to what we do.
0:09:20 > 0:09:23Wow. So using it as a basis for a photo shoot.
0:09:23 > 0:09:26Yeah, I think it could be interesting.
0:09:26 > 0:09:28'It may not be ready for a close-up at the moment,
0:09:28 > 0:09:31'but if Phil renovates this cottage sympathetically
0:09:31 > 0:09:34'and fills it with choice furnishings,
0:09:34 > 0:09:37'he could indeed end up with a model property.'
0:09:43 > 0:09:48So tell me what you're going to do with the little cottage to sort it out.
0:09:48 > 0:09:52We're going to change upstairs. We'll relocate the bathroom, perhaps to the middle
0:09:52 > 0:09:54and make the smaller bedroom larger.
0:09:54 > 0:09:57The floors need levelling.
0:09:57 > 0:10:01Anything you do, you'll have to get Listed Buildings Approval.
0:10:01 > 0:10:04Yeah, we've already had a chat with the conservation officer
0:10:04 > 0:10:07to see what we're allowed to do.
0:10:07 > 0:10:10We'll work alongside them.
0:10:10 > 0:10:15A lot of people don't realise that listed buildings, it's what you do inside as well.
0:10:15 > 0:10:18It covers, if you wanted to hack off the plaster
0:10:18 > 0:10:23or change the floor or do whatever, other than simple painting,
0:10:23 > 0:10:25they can have a say in that, can't they?
0:10:25 > 0:10:30Definitely. I like to listen to what they've got to say.
0:10:30 > 0:10:33We like to preserve the building.
0:10:33 > 0:10:37It's 300 years old. It deserves some respect
0:10:37 > 0:10:38in terms of how you actually change it.
0:10:39 > 0:10:43'So, open plan living and glossy kitchen units are out on this one.
0:10:43 > 0:10:45'Phew!'
0:10:45 > 0:10:47So what's the budget for the work?
0:10:47 > 0:10:51A good 12, probably. Possibly maybe to 15.
0:10:51 > 0:10:53- We'll see!- Who's doing the work?
0:10:53 > 0:10:55A local builder from Dartmouth.
0:10:55 > 0:10:59- Oh.- And we hope he'll do a good job.
0:10:59 > 0:11:03Has he given you any idea of timescales?
0:11:03 > 0:11:08It's only a little cottage, so I don't think it'll take more than a couple of months
0:11:08 > 0:11:10at the latest. Three months.
0:11:10 > 0:11:13Trouble with old things, you don't know what you'll find when you start poking about.
0:11:13 > 0:11:15Again, the builder reassures us
0:11:15 > 0:11:17that there's not too much unforeseen.
0:11:17 > 0:11:19There is perhaps with the chimney,
0:11:19 > 0:11:21but we're assured that it's going to be all right!
0:11:24 > 0:11:27'Well, full marks for confidence, Phil!'
0:11:28 > 0:11:29- #- Don't worry
0:11:29 > 0:11:32- #- About a thing
0:11:32 > 0:11:36- #- Cos every little thing
0:11:36 > 0:11:39- #- Gonna be all right.- #
0:11:39 > 0:11:44'But I can't help worrying that his 15 grand budget will disappear in a flash
0:11:44 > 0:11:47'although this is not his first renovation project.'
0:11:48 > 0:11:50We bought a little house in France.
0:11:50 > 0:11:54That wasn't, again, too big a project.
0:11:54 > 0:11:58Cos you don't speak the language, don't know the rules, don't know how it works there.
0:11:58 > 0:12:03That was a great challenge. Get yourself understood and get the job done.
0:12:03 > 0:12:08And achieve a result, which again, takes quite a bit of doing.
0:12:08 > 0:12:12So this shouldn't be anything by comparison, really.
0:12:12 > 0:12:14A piece of cake!
0:12:14 > 0:12:19Well, there's no doubt that Phil's got himself an incredible little property here.
0:12:19 > 0:12:25However, with such character comes all sorts of unknowns
0:12:25 > 0:12:29and for that, I think, you need to set aside a really big budget.
0:12:29 > 0:12:32I don't think 12 grand is going to do it.
0:12:32 > 0:12:34My guess? Double that.
0:12:34 > 0:12:37You can find out how he gets on later in the show.
0:12:41 > 0:12:46Today I'm in Ilford, Essex, which was once home to John Logie Baird.
0:12:46 > 0:12:51He, fact fans, was the Scottish inventor who built the first working TV
0:12:51 > 0:12:54and I, for one, am very glad he did!
0:13:01 > 0:13:05I'm here today to see an attractive double-fronted period property
0:13:05 > 0:13:08that's been arranged as two two-bedroomed flats.
0:13:08 > 0:13:13Now, it had a guide price of £330,000.
0:13:13 > 0:13:15It certainly looks impressive from here!
0:13:16 > 0:13:18This is a substantial property
0:13:18 > 0:13:23which, up close, looks like it may be in need of a substantial amount of work.
0:13:23 > 0:13:25Let's take a peek inside.
0:13:28 > 0:13:31Well, this is a big old property.
0:13:31 > 0:13:35Nice high ceilings, just what I like to see.
0:13:35 > 0:13:39It's in a bit of a state, though, and you can really smell the damp.
0:13:39 > 0:13:41But a wonderful size room,
0:13:41 > 0:13:44beautiful big window, already double-glazed.
0:13:44 > 0:13:47You can see there's central heating. It just needs a complete refurb.
0:13:47 > 0:13:50It needs some TLC. Put the love back!
0:13:56 > 0:14:00This room I'm in at the front is called Bedroom Two in the auction catalogue.
0:14:00 > 0:14:04Down the hall, the room behind it, is Bedroom One,
0:14:04 > 0:14:06which overlooks the garden.
0:14:07 > 0:14:09Across the hall is the kitchen.
0:14:10 > 0:14:15And behind that, in an extension, is the former utility room
0:14:15 > 0:14:18which, according to the catalogue, leads to the bathroom!
0:14:20 > 0:14:22To the front of the kitchen is the living room,
0:14:22 > 0:14:26a fabulous size, but I'm not so sure about the brick fireplace!
0:14:37 > 0:14:39The flat upstairs has a similar layout.
0:14:39 > 0:14:44The rooms have grand proportions, yet it all feels a little pokey.
0:14:44 > 0:14:49This property deserves to be turned back into a fantastic family home
0:14:49 > 0:14:51and restored to its full grandeur.
0:14:51 > 0:14:54Financially, that's also the best option.
0:14:54 > 0:14:59Similar-sized houses in the local area sell for as much as 550,000
0:14:59 > 0:15:03while sub-divided flats sell for 200 grand each.
0:15:03 > 0:15:07And, even better, planning permission has already been granted
0:15:07 > 0:15:11to turn this back into a home, including the addition of a loft conversion.
0:15:16 > 0:15:18Having looked on the council website recently,
0:15:18 > 0:15:23what I found interesting was that the council don't want to create lots of homes
0:15:23 > 0:15:24within a house like this.
0:15:24 > 0:15:31In fact, they'd rather turn this back from two separate dwellings into one big family house.
0:15:31 > 0:15:35Now, here are the plans that come with this auction lot.
0:15:35 > 0:15:39You've got as it is, and the proposed plans.
0:15:39 > 0:15:41So we've got the ground floor here
0:15:41 > 0:15:44and some really super living areas.
0:15:44 > 0:15:47It's so lovely to have all this space to play with
0:15:47 > 0:15:49and imagine a family living in it.
0:15:49 > 0:15:53You've got one, two, three big family living areas,
0:15:53 > 0:15:55a nice L-shaped kitchen at the back.
0:15:55 > 0:16:01Up on the first floor, you've got one, two, three, four really good-sized bedrooms.
0:16:01 > 0:16:04Up some stairs to the loft space,
0:16:04 > 0:16:06you've got a really good L-shaped bedroom up there
0:16:06 > 0:16:08with an en-suite bathroom.
0:16:08 > 0:16:12Can you imagine what a cracking family house this is going to be once converted?
0:16:12 > 0:16:14Really, really good.
0:16:17 > 0:16:21We asked a local estate agent for his opinion of this property,
0:16:21 > 0:16:24which had a guide price of 330,000.
0:16:24 > 0:16:28First, let's find out more about its location.
0:16:28 > 0:16:32You're in north Ilford, which is predominantly a commuter belt.
0:16:32 > 0:16:35Houses don't come up for sale here very often,
0:16:35 > 0:16:38it's a place where they find, they like the area and they stay for a long time.
0:16:39 > 0:16:43Now, if this flat was renovated with its current layout
0:16:43 > 0:16:45of two two-bedroomed flats,
0:16:45 > 0:16:48how much could each flat achieve if rented out?
0:16:52 > 0:16:56You could rent the two-bedroomed flats for about £750 per calendar month.
0:16:57 > 0:17:02That's a combined rental return of £1,500 per calendar month.
0:17:02 > 0:17:05But if the property was converted as per the plans,
0:17:05 > 0:17:09it could achieve as much as £1,600 per calendar month.
0:17:09 > 0:17:11Now, what about sale valuations?
0:17:15 > 0:17:18The two-bedroomed flats you could sell on for £200,000.
0:17:18 > 0:17:23Added together, that's a grand total of £400,000.
0:17:23 > 0:17:27But renovate the property using the pre-approved plans
0:17:27 > 0:17:31and the estate agent believes it could sell for 550,000.
0:17:35 > 0:17:38Oh, there is a lot of work ahead for the new owner.
0:17:38 > 0:17:41But at least this property comes with full planning permission.
0:17:41 > 0:17:46I think the plans are good, plus conversion sees the biggest return.
0:17:46 > 0:17:48And that's what it's about.
0:17:48 > 0:17:51Let's see who fancied this challenge when it went under the hammer.
0:17:52 > 0:17:54Who'd like to kick off on this?
0:17:54 > 0:17:56300? I'll take 300.
0:17:56 > 0:17:58300 straight off.
0:17:58 > 0:17:59305.
0:17:59 > 0:18:01310. 315.
0:18:01 > 0:18:03320.
0:18:03 > 0:18:04325.
0:18:04 > 0:18:07330 on the phone.
0:18:07 > 0:18:09- 330.- 330.
0:18:09 > 0:18:11335 with you.
0:18:11 > 0:18:12340.
0:18:14 > 0:18:16At 335. 336?
0:18:16 > 0:18:18336.
0:18:18 > 0:18:19337.
0:18:19 > 0:18:22The bids were flying fast and furious.
0:18:22 > 0:18:27We rejoin the auction action at 350,000.
0:18:27 > 0:18:28350 with you.
0:18:28 > 0:18:30351 elsewhere?
0:18:30 > 0:18:32351.
0:18:32 > 0:18:34Back in. 352?
0:18:34 > 0:18:36352.
0:18:36 > 0:18:38353.
0:18:40 > 0:18:41To the phone?
0:18:41 > 0:18:44In the room at 352.
0:18:44 > 0:18:47First time. Second time.
0:18:47 > 0:18:49Third and last time. Have you all done?
0:18:51 > 0:18:56That cheery chap who made the winning bid of 352,000
0:18:56 > 0:18:58is Asif.
0:19:02 > 0:19:04He manages a mobile phone business
0:19:04 > 0:19:07and has renovated two properties previously.
0:19:10 > 0:19:13- Asif, congratulations.- Thank you.
0:19:13 > 0:19:16Tell me, what is the grand plan for this property?
0:19:16 > 0:19:19We've got two plans. Plan A, to make it four flats.
0:19:19 > 0:19:23And Plan B, to make it a big house with six bedrooms.
0:19:23 > 0:19:27But we'll go first with Plan A, subject to planning permission.
0:19:27 > 0:19:30I know this property comes with planning permission anyway
0:19:30 > 0:19:32- to convert it back into a family house.- Yes.
0:19:32 > 0:19:35But you want to take it one stage further and put more bedrooms in?
0:19:35 > 0:19:42Yes, because we have checked the architect which we got with the planning permission,
0:19:42 > 0:19:47but that's not ideally what we suppose to do with it so we're going to change it.
0:19:47 > 0:19:49We will go with Plan A first.
0:19:49 > 0:19:52If we make it four flats, it's going to be easy to sell.
0:19:52 > 0:19:57OK, Plan A. Four flats. It's currently laid out as two flats.
0:19:57 > 0:19:59How is the layout going to work?
0:19:59 > 0:20:02It's going to be two two-bedroomed on ground floor with gardens.
0:20:02 > 0:20:05And one one-bedroom on the first floor.
0:20:05 > 0:20:11And one two-bedroomed with a reception on first floor
0:20:11 > 0:20:12and two rooms in the loft
0:20:12 > 0:20:15both of them with en-suites.
0:20:15 > 0:20:18What do you think the chances are of getting planning permission on that?
0:20:18 > 0:20:23I spoke to my architect. That's why we've got Plan A and Plan B.
0:20:23 > 0:20:27If Plan A fails, Plan B obviously is not going to fail
0:20:27 > 0:20:29because we know we can get it easily.
0:20:29 > 0:20:36'I have my doubts that Asif's plans for four flats will be looked upon favourably by local planners.
0:20:36 > 0:20:39'And is the benefit of six bedrooms worth the expense and delays
0:20:39 > 0:20:45'when he could start right away using the already passed plans for a five-bedroomed house?'
0:20:47 > 0:20:51What sort of budget have you set aside to renovate four flats?
0:20:51 > 0:20:53How much money do you need for that?
0:20:53 > 0:20:58£90,000 off the mark that we got for it.
0:20:58 > 0:21:00If we're going to make it one house,
0:21:00 > 0:21:04we'll spend somewhere around 65 to £70,000.
0:21:04 > 0:21:06What's your timescale, Asif, if you go with Plan A?
0:21:06 > 0:21:08Plan A, three to four months.
0:21:08 > 0:21:11And what if it's Plan B? Quicker? Sooner?
0:21:11 > 0:21:14Yeah, quicker, because then we don't need to do so much work.
0:21:14 > 0:21:17No gas meters, no extra boilers,
0:21:17 > 0:21:21so everything's going to be less work for the house.
0:21:23 > 0:21:26'It seems to me that schedule-wise and budget-wise,
0:21:26 > 0:21:28'the option of converting this into a house
0:21:28 > 0:21:31'should be Plan A rather than Plan B.
0:21:40 > 0:21:42'As Asif runs a mobile phone business
0:21:42 > 0:21:46'and only recently decided to try property developing,
0:21:46 > 0:21:48'could it end up being his calling?'
0:21:48 > 0:21:51I bought two properties and I'm still doing it.
0:21:51 > 0:21:54And this is the big project which I want to do.
0:21:54 > 0:21:55Do you have another business as well?
0:21:55 > 0:21:57Yes, I do mobile phone business.
0:21:57 > 0:22:02- So you're a busy man. You've got the mobile phone business and you're dabbling in property.- Yes,
0:22:02 > 0:22:04both together.
0:22:04 > 0:22:09Do you get involved with the renovations? There's an awful lot of work to do on this building.
0:22:09 > 0:22:12The plan is that I'll be around all the time.
0:22:12 > 0:22:16I will do a visit every single day to the property.
0:22:16 > 0:22:21Yes. But I will not make my hands dirty because I don't have time for that.
0:22:21 > 0:22:24Is it going to be flats? Is it going to be a family house?
0:22:24 > 0:22:27Well, I can't wait to find out what happens.
0:22:27 > 0:22:32- Asif, it's been great meeting you. - Thank you.- Good luck with this project.- Thank you so much.
0:22:34 > 0:22:37I love Asif's enthusiasm for this project,
0:22:37 > 0:22:39but I do worry about his Plan A,
0:22:39 > 0:22:42especially with the current planning history on this road.
0:22:42 > 0:22:44It seems to be a bit anti-flats.
0:22:44 > 0:22:46At least he does have a Plan B
0:22:46 > 0:22:48if his ideas are rejected.
0:22:48 > 0:22:54So, will we return to find four flats or a large family home?
0:22:54 > 0:22:57You can find out later in the programme.
0:22:58 > 0:23:01'Coming up: in Openshaw, Manchester,
0:23:01 > 0:23:04'there'd been some unwanted changes to this first floor flat.'
0:23:04 > 0:23:07A-ha! That's where the front door is!
0:23:08 > 0:23:12In Ilford, will it be Plan A or Plan B?
0:23:12 > 0:23:15Whoever's going to buy it, they'll be very happy with it
0:23:15 > 0:23:18because we did extremely good work on it.
0:23:20 > 0:23:22But first, we go back to Devon.
0:23:22 > 0:23:24Has Phil been busy with this cottage?
0:23:24 > 0:23:28It's been a lot of hard work, but it's paid off.
0:23:31 > 0:23:37It's time to return to the ever-so quaint village of Ipplepen in Devon,
0:23:37 > 0:23:42and this delightful 300-year-old Grade II listed two-bed cottage.
0:23:47 > 0:23:53I was very taken by its quaint character and rustic charm.
0:23:53 > 0:23:58It's just incredible when you come up to this first floor.
0:23:59 > 0:24:03Not even the dank odour of damp could kill my ardour for this cottage.
0:24:03 > 0:24:08Its Grade II listing meant the renovation would be far from simple.
0:24:08 > 0:24:09But...
0:24:10 > 0:24:12Do you care? No.
0:24:13 > 0:24:14No.
0:24:14 > 0:24:16I was, simply, smitten.
0:24:17 > 0:24:20As was Phil, who, with his wife Donna
0:24:20 > 0:24:23purchased the property at auction for 112,000.
0:24:23 > 0:24:26That's 33,000 over the guide price.
0:24:26 > 0:24:30I'm sure there's a lot of people who'll be very jealous of you!
0:24:30 > 0:24:37It's a lovely cottage. We've been looking for the best part of 18 months to find a project like this.
0:24:37 > 0:24:39It's quite idyllic, really.
0:24:41 > 0:24:45The couple have restored character properties like this previously.
0:24:47 > 0:24:50Ten months later, we're back to see how they've done.
0:24:51 > 0:24:53Have they brought this place back to life?
0:25:18 > 0:25:23This lovely little cottage looks like it's got at least another 300 years of life left in it
0:25:23 > 0:25:26thanks to Phil and Donna's hard graft.
0:25:30 > 0:25:32We're quite relieved it's finished.
0:25:32 > 0:25:35It has been a lot of hard work.
0:25:35 > 0:25:39But it's worked out very well, I must say.
0:25:42 > 0:25:44And I have to agree.
0:25:44 > 0:25:47The monumental task of renovating this property
0:25:47 > 0:25:50began by digging out the floor on this level
0:25:50 > 0:25:53in order to add a damp proof membrane,
0:25:53 > 0:25:58no easy task, before fitting the slate tiles in the living area and kitchen,
0:25:58 > 0:26:00where Phil's good work continued.
0:26:13 > 0:26:15In this corner, there's new plumbing work.
0:26:15 > 0:26:20The window sill is new, the beam's been exposed, the stonework.
0:26:20 > 0:26:24And this piece of wood's been sculptured to fit into this section.
0:26:24 > 0:26:28This attention to detail and sensitive restoration
0:26:28 > 0:26:30is in evidence throughout
0:26:30 > 0:26:33and was completed in keeping with the property's Grade II listing.
0:26:33 > 0:26:39So the walls were replastered using a specialist lime-based treatment
0:26:39 > 0:26:42and decorated using a chalk-based paint.
0:26:42 > 0:26:44We spoke to Conservation at the beginning.
0:26:44 > 0:26:48They're very good in their advice.
0:26:48 > 0:26:51We obviously didn't ignore that
0:26:51 > 0:26:57and carried on with the project of restoring the house, really,
0:26:57 > 0:27:00to its full character, full potential.
0:27:02 > 0:27:07In the master bedroom, I adore the exposed beams,
0:27:07 > 0:27:10now they've been stripped and sanded clean of the crusty black paint.
0:27:13 > 0:27:16Well, we've uncovered the beams,
0:27:16 > 0:27:18replastered throughout,
0:27:18 > 0:27:19put new wiring in.
0:27:19 > 0:27:24We uncovered this, which was underneath wallpaper, and made good.
0:27:24 > 0:27:26The window sills are new.
0:27:27 > 0:27:30And repainted.
0:27:35 > 0:27:38In the bathroom, work is still to be completed,
0:27:38 > 0:27:42but overall I'm really impressed by the quality craftsmanship
0:27:42 > 0:27:44and Phil's team of tradesmen.
0:27:45 > 0:27:48The renovation's taken four months to get to this stage.
0:27:48 > 0:27:53Phil and his wife spent the first six months researching the best methods
0:27:53 > 0:27:57to restore a Grade II listed property such as this.
0:27:57 > 0:28:00I was concerned that their budget of 12 to £15,000
0:28:00 > 0:28:03seemed a bit tight for a Grade II restoration.
0:28:03 > 0:28:06So, how did it turn out?
0:28:06 > 0:28:10We spent about 25,000. Because of the nature of the property,
0:28:10 > 0:28:13we had to repair quite a lot of the building.
0:28:13 > 0:28:16And that's added to the costs.
0:28:17 > 0:28:20Add the £25,000 outlay so far
0:28:20 > 0:28:22to the purchase price of 112,000
0:28:22 > 0:28:27and that means a total investment to date of £137,000.
0:28:29 > 0:28:32So, while Phil has brought this cottage back to life,
0:28:32 > 0:28:35will it bring him back a profit?
0:28:40 > 0:28:44We invited two local property experts to give us their opinions,
0:28:44 > 0:28:47including the one who viewed the cottage previously.
0:28:47 > 0:28:50Coming back to the property again today,
0:28:50 > 0:28:53it's really good to see that the transformation's gone through.
0:28:53 > 0:28:55It looks really good throughout. Very light, bright,
0:28:55 > 0:28:57and a very nice property.
0:28:57 > 0:28:58It's fantastic.
0:28:58 > 0:29:02It's everything you want from "Ye Olde Cottage".
0:29:02 > 0:29:05Beams everywhere, log fire,
0:29:05 > 0:29:09lovely kitchen, stone reveals to the windows.
0:29:09 > 0:29:11It's just the business.
0:29:12 > 0:29:16So, the property experts are impressed, quite rightly too.
0:29:16 > 0:29:20How much do they believe the property could achieve if sold,
0:29:20 > 0:29:24bearing in mind Phil's total outlay to date of 137,000?
0:29:25 > 0:29:29If I were to put this property on the market, I'd be looking at a figure
0:29:29 > 0:29:32of 165 to £170,000.
0:29:32 > 0:29:37I'd put the property on the market at 179,950.
0:29:37 > 0:29:39Those figures, if achieved,
0:29:39 > 0:29:41would give the couple a pre-tax profit
0:29:41 > 0:29:44of between 28 and just under £43,000.
0:29:46 > 0:29:49But Phil feels the cottage is worth more
0:29:49 > 0:29:53and has had an independent valuation of 190,000.
0:29:54 > 0:29:56Now, what about rentals?
0:29:56 > 0:30:01I'd be looking at achieving between 650 and £700 per calendar month.
0:30:01 > 0:30:06On a per calendar month basis, I'd be looking to achieve around £700.
0:30:06 > 0:30:12That could give Phil and his wife a rental yield of between 5.5 and 6.5 per cent.
0:30:12 > 0:30:15So, will they sell up or let it?
0:30:16 > 0:30:18We're probably going to sell it, actually.
0:30:18 > 0:30:20Sell it, reluctantly.
0:30:20 > 0:30:26But there's a need for homes in this particular area
0:30:26 > 0:30:30and I think it'll be a lovely home for a nice young family.
0:30:42 > 0:30:47Developing property for financial reward is sometimes the name of the game.
0:30:47 > 0:30:51However, if you can also bring a 300-year-old cottage like this back to life
0:30:51 > 0:30:54for many more generations to enjoy,
0:30:54 > 0:30:58then the rewards are far greater than money alone.
0:31:06 > 0:31:10For the next property that went under the hammer, I'm in Manchester.
0:31:11 > 0:31:15Well, in any great city, there's often an area
0:31:15 > 0:31:21which hasn't yet benefited from regeneration or positive movement in terms of house prices.
0:31:21 > 0:31:26However, those can be the areas to really look out for if you're a property investor
0:31:26 > 0:31:31because the theory goes the prices are only going to go one way.
0:31:31 > 0:31:35Well, such is the situation here in Openshaw, Greater Manchester.
0:31:35 > 0:31:39It's got good connections into the city with road and rail links,
0:31:39 > 0:31:42good local amenities, and yet property prices are still fairly low.
0:31:42 > 0:31:45Which means if you're a buy-to-let investor,
0:31:45 > 0:31:49the potential for yields is very high.
0:31:50 > 0:31:53So this is an area where you can buy a home or invest
0:31:53 > 0:31:55without spending a fortune.
0:31:55 > 0:31:59There are certainly signs that there is some investment in the area.
0:32:00 > 0:32:04The property I'm here to see sounds like it could fit the bill perfectly.
0:32:04 > 0:32:08It's a fairly modern two-bedroomed flat in this building here.
0:32:08 > 0:32:10It's actually the upstairs flat.
0:32:10 > 0:32:14Let's take a look, because of course it depends on what it's like inside.
0:32:18 > 0:32:21Right. It doesn't have a door.
0:32:24 > 0:32:25That's a first!
0:32:26 > 0:32:28Great!
0:32:29 > 0:32:33The flat went to auction guided at 25,000.
0:32:34 > 0:32:37A-ha! That's where the front door is!
0:32:37 > 0:32:39That's one of the first jobs to do,
0:32:39 > 0:32:42make the place properly secure.
0:32:42 > 0:32:45But what have we got? This is the living area.
0:32:45 > 0:32:48Hmm, you know. I mean, yes, it's a mess,
0:32:48 > 0:32:53but given the age of the building, I wouldn't expect any major structural issues
0:32:53 > 0:32:59so you've just got to see through what is a fairly chaotic state at the moment.
0:32:59 > 0:33:01Likewise here in the kitchen.
0:33:01 > 0:33:07Basic total refurbishment required. Also no double glazing. You'd want to put that in.
0:33:07 > 0:33:11Electric storage heaters, so you might think about some kind of combination boiler
0:33:11 > 0:33:13or basically, central heating.
0:33:13 > 0:33:15New kitchen, probably new bathroom.
0:33:15 > 0:33:19But as flats go, it's not a bad size.
0:33:19 > 0:33:22The two bedrooms look a lot worse than they really are.
0:33:22 > 0:33:26I think that once cleaned up and decorated, they should be fine.
0:33:26 > 0:33:28Let's hope that on auction day,
0:33:28 > 0:33:32the new owner secured the flat near to that £25,000 guide price
0:33:32 > 0:33:36and has funds standing by to patch it up.
0:33:36 > 0:33:40Because the missing front door was just the beginning of the work needed here.
0:33:41 > 0:33:47Down this little corridor, you've got a bathroom, definitely in need of complete re-doing.
0:33:47 > 0:33:49Storage cupboard there.
0:33:49 > 0:33:51First of the bedrooms on this side, not a bad size.
0:33:51 > 0:33:53The second bedroom, a bit of a box room
0:33:53 > 0:33:56but again, not too bad.
0:33:56 > 0:33:58So why would you bother with this place?
0:33:58 > 0:34:00Let's just look at those numbers again.
0:34:00 > 0:34:05Say you get this for around that guide price of £25,000.
0:34:05 > 0:34:07Around here, this sort of place, done up,
0:34:07 > 0:34:13is going to rent out between 450-ish and £500 a month.
0:34:13 > 0:34:14Yeah,
0:34:14 > 0:34:19so that's over, round about, £5,000 a year
0:34:19 > 0:34:21for a £25,000 investment.
0:34:21 > 0:34:23Let's add in a little bit to do up the refurbishment
0:34:23 > 0:34:29and you've still got money - you're still on for something like a 20% yield.
0:34:29 > 0:34:33The amount of money you've spent and what percentage of that you're getting back every year, 20%.
0:34:33 > 0:34:36That means that in five years,
0:34:36 > 0:34:38you would have completely paid for this place.
0:34:38 > 0:34:41After that, everything you get from it is complete profit.
0:34:41 > 0:34:43That's why somebody will buy it!
0:34:44 > 0:34:49Ker-ching! So, this property then becomes a slot machine
0:34:49 > 0:34:51paying out every month.
0:34:51 > 0:34:54You'd barely have to press a button or pull a handle.
0:34:54 > 0:34:59But there's one potential expense outside that could creep up on you.
0:35:00 > 0:35:04At the front of the property, I walked past it quickly on my way in,
0:35:04 > 0:35:07but I shouldn't have, because there is this plant.
0:35:07 > 0:35:09Looks fairly innocuous.
0:35:09 > 0:35:11But this thing is an absolute nightmare.
0:35:11 > 0:35:14It's called Japanese knotweed.
0:35:14 > 0:35:18It's not actually on the grounds of the flat or the building itself.
0:35:18 > 0:35:21It's on the adjoining plot, but that doesn't matter.
0:35:21 > 0:35:26This little devil has roots that go down, go into concrete, undermine foundations,
0:35:26 > 0:35:28it's absolutely horrendous.
0:35:28 > 0:35:30It's really difficult to get rid of as well.
0:35:30 > 0:35:34It's so bad, it's notifiable, you have to tell the council you've got it,
0:35:34 > 0:35:37and then pay somebody to get rid of it professionally.
0:35:37 > 0:35:40Not good news, but it's got to go!
0:35:45 > 0:35:49So let's hope this flat doesn't become a knotty problem
0:35:49 > 0:35:51for some unsuspecting buyer.
0:35:51 > 0:35:53And while we're on the subject of greenery,
0:35:53 > 0:35:58the other bad news is that the flat upstairs doesn't have access to the sizeable garden area.
0:35:58 > 0:36:02That all belongs to the downstairs property.
0:36:02 > 0:36:06On the good news front, it does have a parking space.
0:36:07 > 0:36:10We invited a local estate agent to come and have a look around.
0:36:10 > 0:36:13Would he recommend any structural changes?
0:36:14 > 0:36:18I wouldn't change any walls, move anything around in the property.
0:36:18 > 0:36:22The layout is as it is, and it's a good layout for a two-bed apartment.
0:36:22 > 0:36:25But you would be changing the bathroom, the kitchen,
0:36:25 > 0:36:29you may, if there's a gas supply to the property, change the electric storage heaters
0:36:29 > 0:36:30for gas central heating.
0:36:30 > 0:36:33'And if you were going to live here as a tenant,
0:36:33 > 0:36:35'what rent would you expect to pay?'
0:36:35 > 0:36:38Once this property has been fully refurbished,
0:36:38 > 0:36:45I'd expect it to bring a rental value of between £375 and £395 per calendar month.
0:36:45 > 0:36:48'How much does the estate agent think the flat could be valued at
0:36:48 > 0:36:50'after a full refurbishment?'
0:36:50 > 0:36:54Once this property has been refurbished, the re-sale value of it
0:36:54 > 0:36:59would be between £55,000 to £60,000.
0:36:59 > 0:37:05A slight downside to the flat is you don't have any outdoor space.
0:37:05 > 0:37:10You've got right of access, but this garden isn't yours. It belongs to the downstairs flat.
0:37:10 > 0:37:14But with those kind of rental yields possible, who cares?
0:37:14 > 0:37:19This is a great one to go for. Let's see who agreed when it went under the hammer.
0:37:19 > 0:37:23Lot four. Two-bedroomed upper-floor flat.
0:37:23 > 0:37:25Got a bid on this already at £10,000
0:37:25 > 0:37:29but it's not going to go for 10,000. 10,000 I have on my right.
0:37:29 > 0:37:3212,000. 12,000 on my left, seated.
0:37:32 > 0:37:3314.
0:37:33 > 0:37:36At £14,000. Do we see 16?
0:37:36 > 0:37:39At £16,000. Thank you.
0:37:39 > 0:37:42At £16,000. 17,000. Thank you.
0:37:42 > 0:37:44At 18. At 18,000. 18 I have.
0:37:44 > 0:37:4919. At £19,000. Are we done? Do we see 20?
0:37:49 > 0:37:5120,000 on my right, then.
0:37:51 > 0:37:54At £20,000. I'll take a half.
0:37:54 > 0:37:55At 20,000. 500.
0:37:55 > 0:37:5821, now. It's against you, sir.
0:37:58 > 0:37:59At 21,000.
0:37:59 > 0:38:0221,500. 22.
0:38:02 > 0:38:04At 22. 22,500.
0:38:04 > 0:38:0622,500. 23.
0:38:06 > 0:38:10At 23,000. New bid, 23,500. 24?
0:38:10 > 0:38:13At 24. 24,500.
0:38:13 > 0:38:1625. At £25,000.
0:38:16 > 0:38:1925,500. 25,500, new bid.
0:38:19 > 0:38:2126? At 26.
0:38:21 > 0:38:2426,500. 27?
0:38:24 > 0:38:26No. At 26,500, then, seated.
0:38:26 > 0:38:29For the first time. No, he's back in again.
0:38:29 > 0:38:30At £27,000.
0:38:30 > 0:38:3327,000 for the first time.
0:38:33 > 0:38:36Second time. Third and final time.
0:38:36 > 0:38:38There we go, sir. Your paddle number?
0:38:38 > 0:38:42That successful bidder who paid £27,000,
0:38:42 > 0:38:46was Kasim, or Kas, as he's known, here on the left with his builder Naz.
0:38:46 > 0:38:49Kas is a doctor of chemistry,
0:38:49 > 0:38:52so let's hope he's got a successful formula up his sleeve
0:38:52 > 0:38:54for renovating property.
0:38:54 > 0:38:57But as his builder's come to give the flat the once-over,
0:38:57 > 0:39:01maybe they're only at the experimental stage with it.
0:39:05 > 0:39:09- Kas, Naz, great to meet you both. - Hi.- Congratulations.
0:39:09 > 0:39:11- Thanks.- Tell me why you wanted to buy the place.
0:39:11 > 0:39:13I've been looking for places like this for a while.
0:39:13 > 0:39:18I'm looking for places which produce about a 20% yield.
0:39:18 > 0:39:22It was in the auction for £25,000 guide price. I got it for 27.
0:39:22 > 0:39:26And maybe three or four thousand pounds work.
0:39:26 > 0:39:30And I think I could rent this for £500 a month.
0:39:30 > 0:39:32Which works out at a 20% yield.
0:39:32 > 0:39:35Well, he's a man after my own heart, with those returns.
0:39:35 > 0:39:39There isn't much Kas doesn't know about turning a profit on property.
0:39:39 > 0:39:44He learned a lot when he started helping out with his father's property business.
0:39:44 > 0:39:46And it all went upwards from there.
0:39:46 > 0:39:49Kas has a buy-to-let portfolio of 40 or so properties.
0:39:49 > 0:39:54Until five years ago, he had a contract with the Home Office
0:39:54 > 0:39:57to provide housing for 5,500 people.
0:39:57 > 0:40:00But when that contract ended in 2007,
0:40:00 > 0:40:02he ended up doing something completely different.
0:40:02 > 0:40:05After that, I bought a restaurant.
0:40:05 > 0:40:08I ran the restaurant for a couple of years.
0:40:08 > 0:40:13Then got very bored and went to India, bought a farm, set up a dairy,
0:40:13 > 0:40:15we're selling the milk.
0:40:15 > 0:40:19And ran that, and then came back here and started doing this again.
0:40:20 > 0:40:23Kas has a PhD in chemistry from Oxford.
0:40:23 > 0:40:27But he's swapped the periodic table for flat-pack tables
0:40:27 > 0:40:30to furnish his growing buy-to-let portfolio.
0:40:31 > 0:40:35And his builder Naz is a crucial element in the equation.
0:40:35 > 0:40:38So what are the plans and the budget here?
0:40:39 > 0:40:42We're going to rip the whole bathroom, and the kitchen.
0:40:42 > 0:40:49All the rooms. We're looking in the region of four to 5k to sort it out.
0:40:49 > 0:40:53- How long do you think it'll take? - A couple of weeks.- Two weeks?!
0:40:53 > 0:40:57- Well, nine days, then.- Nine days?! - In that region.
0:40:57 > 0:41:00I wasn't suggesting you go less, I was suggesting more!
0:41:00 > 0:41:05We've got a team of workers that come in at a particular time, do their bit and go.
0:41:05 > 0:41:08The next batch will come in and do whatever they need to do,
0:41:08 > 0:41:10- like plumbing the whole place.- Wow. - Yeah.
0:41:10 > 0:41:12We don't mess about!
0:41:12 > 0:41:17So, Kas, obviously you've employed a super-builder!
0:41:19 > 0:41:22- Is that really important? - It's very important
0:41:22 > 0:41:25because from today I'm paying council tax on this property.
0:41:25 > 0:41:31And I've already got tenants who want to move in to this property.
0:41:31 > 0:41:34- So, basically, a week from today... - Hopefully. Nine days.
0:41:34 > 0:41:38- I'm saying six days, he's got to finish it in six days!- Nine days!
0:41:40 > 0:41:42'Well, he makes it sound incredibly easy,
0:41:42 > 0:41:45'but is, in fact, working hard for his money.
0:41:45 > 0:41:49'He has a very refreshing approach to forming a good relationship with his tenants.'
0:41:49 > 0:41:52I don't ask them to put the money in my bank
0:41:52 > 0:41:54and not ever bother coming to the properties.
0:41:54 > 0:41:58I come and meet the tenants on a monthly basis.
0:41:58 > 0:42:02I sit with them, pick up the rent and have a look around the house.
0:42:02 > 0:42:03Also, I have a good chat with them.
0:42:03 > 0:42:06So I know their brothers, their sisters, their children.
0:42:06 > 0:42:08And they invite me to their birthday parties!
0:42:08 > 0:42:14And if you do that kind of thing, people become shy about not paying you rent
0:42:14 > 0:42:17because they know you in a personal way.
0:42:17 > 0:42:19That's how I do it.
0:42:19 > 0:42:22- Congratulations. It's really great to meet you.- Thank you very much.
0:42:22 > 0:42:25- Lovely story.- Thank you very much.
0:42:26 > 0:42:30'So, Kas and Naz showing that you can get
0:42:30 > 0:42:36those extraordinarily high returns on your investment with property these days.
0:42:36 > 0:42:40You don't need a degree in chemistry to do it.
0:42:40 > 0:42:45What you do need is some fairly basic skills in human relations.
0:42:45 > 0:42:47And dedication.
0:42:47 > 0:42:52You can find out if this place is completed in just six days
0:42:52 > 0:42:54later in the show.
0:42:56 > 0:43:00So, have our fearless developers emerged victorious?
0:43:00 > 0:43:04- Or have they floundered in the shallow end?- It's time to find out.
0:43:05 > 0:43:06Back now to Ilford, Essex.
0:43:06 > 0:43:10Earlier in the programme, for £352,000,
0:43:10 > 0:43:15Asif had bought a grand mid-terraced property on this road of imposing houses.
0:43:15 > 0:43:18It had been converted into two flats.
0:43:18 > 0:43:20The flats were in poor decorative order
0:43:20 > 0:43:22and the back garden was a jungle.
0:43:22 > 0:43:26Asif owns a mobile phone business with his brother.
0:43:26 > 0:43:28This was his third property investment
0:43:28 > 0:43:31and he planned to ring the changes with it.
0:43:31 > 0:43:35It had planning permission to convert it back to a single house,
0:43:35 > 0:43:38but Asif was definitely a man with a plan.
0:43:38 > 0:43:41In fact, more than one.
0:43:41 > 0:43:43What is the grand plan for this property?
0:43:43 > 0:43:47We've got two plans. Plan A to make it four flats.
0:43:47 > 0:43:50And Plan B to make it a big house with six bedrooms.
0:43:50 > 0:43:55But we'll go first with Plan A, subject to planning permission.
0:43:55 > 0:43:58Well, nearly nine months later,
0:43:58 > 0:44:00we've returned to see what Asif has achieved.
0:44:03 > 0:44:06There are new double-glazed windows throughout
0:44:06 > 0:44:09and skylights in the re-tiled roof.
0:44:09 > 0:44:11At the back, the property now has a garden.
0:44:16 > 0:44:20And this impressive ground-floor extension runs the width of the house.
0:44:20 > 0:44:23I say house because that's what it is.
0:44:23 > 0:44:27Asif had his application for four flats turned down.
0:44:27 > 0:44:30So he went with his Plan B,
0:44:30 > 0:44:33to create one magnificent house.
0:44:33 > 0:44:37With this very stylish kitchen that his brother helped design,
0:44:37 > 0:44:40Asif's delighted with the look they've created.
0:44:40 > 0:44:43Yeah, the kitchen is extremely nice.
0:44:43 > 0:44:45You can see the flashback and the tiling.
0:44:45 > 0:44:49The idea was to have a standard kitchen, not to spend a lot of money on it,
0:44:49 > 0:44:53but all of a sudden we changed the plan that no, we should have a full kitchen.
0:44:53 > 0:44:57We went to a DIY store. The combination of colours was already there.
0:44:57 > 0:45:03What we did was a bit more mix and match with the colours combination with the purple.
0:45:03 > 0:45:07And the cream, and the purple combination, it's really nice and to an extremely good standard.
0:45:21 > 0:45:25At the other end of the extension is a new dining area
0:45:25 > 0:45:28where the former bathroom was.
0:45:28 > 0:45:31Plus the first of three bathrooms.
0:45:32 > 0:45:35The former kitchen has been knocked through to the living room
0:45:35 > 0:45:39and removing the two chimney breasts has made the room even bigger.
0:45:41 > 0:45:45Across the hall, the bay-fronted reception room should be lovely,
0:45:45 > 0:45:47once the carpet's laid.
0:45:47 > 0:45:50Upstairs, there was a separate self-contained flat
0:45:50 > 0:45:54which Asif has now transformed into four bedrooms.
0:46:02 > 0:46:06And there's this high quality family bathroom.
0:46:09 > 0:46:12Plus an en-suite in the front master bedroom.
0:46:17 > 0:46:20And it doesn't end here, because Asif got planning permission
0:46:20 > 0:46:23to add two further bedrooms up in the attic.
0:46:25 > 0:46:30So the house now has six bedrooms, and this is the third family bathroom
0:46:30 > 0:46:35beautifully finished and equipped. There's so much accommodation here.
0:46:35 > 0:46:37It's a big house. A big family house.
0:46:37 > 0:46:41I think whoever buys it will be very happy with it
0:46:41 > 0:46:43because we did extremely good work on it,
0:46:43 > 0:46:46especially the kitchen and the bathrooms and the tiling.
0:46:46 > 0:46:49We made it to a very high standard.
0:46:49 > 0:46:51Because the house is worth a lot of money,
0:46:51 > 0:46:56for that reason I was thinking if I'm going to buy a house, spending that sort of money,
0:46:56 > 0:47:00I really need extremely good work. And that's what we've done.
0:47:02 > 0:47:04You can see where the money's been spent, all right.
0:47:04 > 0:47:07I'm impressed with Asif's attention to detail
0:47:07 > 0:47:10and the luxury feel he's created throughout.
0:47:10 > 0:47:13But I'm keen to know how this has impacted on his budget
0:47:13 > 0:47:18which he'd set at 90,000 for the four flat conversion,
0:47:18 > 0:47:21and 65 to 70 for the single house.
0:47:21 > 0:47:26We went over budget. The reason was we didn't keep it to the standard,
0:47:26 > 0:47:28we went to the extremely high standard. That was the reason.
0:47:28 > 0:47:32We went on the budget from 90 to £95,000 on it.
0:47:32 > 0:47:37Added to the £352,000 Asif paid at auction,
0:47:37 > 0:47:41that takes his total investment here to 447,000.
0:47:41 > 0:47:43His plans haven't changed.
0:47:43 > 0:47:45He's still looking to sell.
0:47:46 > 0:47:50So time we got some opinions and those all-important valuations
0:47:50 > 0:47:52from two local estate agents.
0:47:54 > 0:47:56He's done very well. The finish is lovely.
0:47:56 > 0:48:00The kitchen is going to be very nice. It's got the family room as well.
0:48:00 > 0:48:03The kitchen, the dining room there. It'll be the heart of the home.
0:48:03 > 0:48:07I particularly like the kitchen. They've thought outside the box.
0:48:07 > 0:48:10The colours they've used, a lot of people wouldn't take a risk with that,
0:48:10 > 0:48:14whereas they've taken that risk and it's worked for them.
0:48:14 > 0:48:17Putting the sixth bedroom in the loft was a fantastic plan.
0:48:17 > 0:48:19It's really opened it out, with a Juliet balcony.
0:48:19 > 0:48:23I can imagine myself sitting there after work with a glass of wine.
0:48:23 > 0:48:25That's a very nice touch.
0:48:25 > 0:48:27You've got six bedrooms and four bathrooms.
0:48:27 > 0:48:31It's a property that's going to suit a big family.
0:48:31 > 0:48:38The estate agents think the house could rent for between £1,600 and £1,800 per calendar month.
0:48:38 > 0:48:41But the plan was always to sell.
0:48:41 > 0:48:47So will the re-sale valuations be more than the 447,000 he's invested here?
0:48:47 > 0:48:52If I was looking to sell it, we're probably looking at figures around the 550,000 mark.
0:48:52 > 0:48:56If I put it on the market today, I'd put it on at £550,000.
0:48:56 > 0:49:01Those agreed valuations would generate a gross profit for Asif
0:49:01 > 0:49:05of 103,000 before taxes and expenses.
0:49:06 > 0:49:10550, yes. That's something we want to achieve on this property.
0:49:10 > 0:49:13Or maybe a bit more, but we're happy with 550.
0:49:13 > 0:49:17Asif runs a mobile phone business with his brother.
0:49:17 > 0:49:19But after the success of this project,
0:49:19 > 0:49:22could he see property developing as a new calling for him?
0:49:24 > 0:49:28Hopefully, yes. I'm looking forward to, after the sale of this property,
0:49:28 > 0:49:31then I'll make my mind up as to what to do in the future.
0:49:31 > 0:49:35Could he be tempted to do an even bigger refurbishment next time?
0:49:35 > 0:49:38I'd love to do a bigger one than this one
0:49:38 > 0:49:42because all the small projects look small to me now because of doing this big one.
0:49:42 > 0:49:47But I'm looking forward to it. If I get something bigger, why not? I'll do it.
0:49:51 > 0:49:55Openshaw in Greater Manchester is a promising place for investors.
0:49:55 > 0:49:57Parts of the area have seen some regeneration
0:49:57 > 0:50:00and the arrival of some major retailers.
0:50:00 > 0:50:03And with a healthy rental market and low property prices,
0:50:03 > 0:50:07this is definitely hunting ground for some very impressive profits.
0:50:07 > 0:50:13It was these elements that convinced chemistry PhD and property developer Kas
0:50:13 > 0:50:15here on the left with his builder Naz,
0:50:15 > 0:50:19to pay £27,000 for this first-floor flat.
0:50:22 > 0:50:25The flat was in terrible condition.
0:50:25 > 0:50:27It didn't even have a front door.
0:50:27 > 0:50:31Kas is now a full-time buy-to-let investor
0:50:31 > 0:50:32with a large portfolio,
0:50:32 > 0:50:36and he was confident that the flat would give him the return he was after.
0:50:38 > 0:50:41I'm looking for places which produce about a 20% yield.
0:50:41 > 0:50:46Doctor of Chemistry Kas hasn't created this investment in the lab.
0:50:46 > 0:50:47It's for real.
0:50:48 > 0:50:52But I thought his builder Naz must have misread his lab report
0:50:52 > 0:50:55of the time the refurbishment would take.
0:50:56 > 0:50:58- A couple of weeks.- Two weeks?!
0:50:58 > 0:51:01- Well, nine days, then.- Nine days?!
0:51:01 > 0:51:05I wasn't suggesting you go less! I was suggesting you go more!
0:51:05 > 0:51:07OK, listen to this.
0:51:07 > 0:51:12Just 12 days later, it's time to find out whether less really is more.
0:51:12 > 0:51:16Kas and Naz have certainly been busy.
0:51:16 > 0:51:20The skip on the drive is full and the flat now has a front door.
0:51:20 > 0:51:23But what's been achieved inside?
0:51:26 > 0:51:29Well, a great deal. Everywhere has been painted.
0:51:29 > 0:51:32It's been furnished.
0:51:34 > 0:51:36And there's new carpet throughout.
0:51:36 > 0:51:40The living room even has tables and chairs.
0:51:41 > 0:51:43And pictures ready to go up.
0:51:44 > 0:51:46I can't believe the kitchen.
0:51:48 > 0:51:50All this in less than two weeks.
0:51:51 > 0:51:54So where did chemist Kas start?
0:51:57 > 0:52:00We've taken the whole old kitchen out
0:52:00 > 0:52:03and completely gutted the place.
0:52:03 > 0:52:04All the pipes and everything.
0:52:04 > 0:52:08We've redecorated, wallpapered the place,
0:52:08 > 0:52:13we've got new white goods and obviously a new cooker.
0:52:13 > 0:52:17Then last of all, we put in a new lino.
0:52:17 > 0:52:19And I'm really pleased with everything.
0:52:24 > 0:52:29Well, it's just 12 days since we last met Kas and his builder, Naz.
0:52:29 > 0:52:34They had all the tradesmen standing by to come in, one after another.
0:52:34 > 0:52:36Did it all run to schedule?
0:52:36 > 0:52:38Monday morning we started gutting everything.
0:52:38 > 0:52:44We ordered a skip. We decided to keep the old heaters because they were in good condition.
0:52:44 > 0:52:46We could make use of them.
0:52:46 > 0:52:49And basically, that was all that was left in this building.
0:52:49 > 0:52:52Whip it out and start again in super-fast time.
0:52:54 > 0:52:57And like the living room, both bedrooms have been furnished.
0:52:59 > 0:53:01But the bathroom had been totally trashed.
0:53:01 > 0:53:05That proved a bigger challenge, as Kas explains.
0:53:05 > 0:53:09Well, the bathroom was pretty similar to the kitchen.
0:53:09 > 0:53:11Basically, we ripped everything out.
0:53:11 > 0:53:13But there was one difference.
0:53:13 > 0:53:16The walls were in a really, really bad state.
0:53:16 > 0:53:21I tried to re-tile, but it would have meant replastering the whole bathroom.
0:53:21 > 0:53:25So I got this PVC sheeting and it hides all the imperfections in the wall.
0:53:25 > 0:53:27And it looks really nice.
0:53:27 > 0:53:31Kas spent £150 on the PVC sheeting
0:53:31 > 0:53:33and saved on the suite, as well.
0:53:33 > 0:53:36I used to pay a lot more for bathroom suites,
0:53:36 > 0:53:38around 250 to £300.
0:53:38 > 0:53:42But I found a place that did it for £180, so I was really pleased with that.
0:53:43 > 0:53:46The big question I bet everyone wants to know the answer to,
0:53:46 > 0:53:49is just how long did this refurbishment take?
0:53:49 > 0:53:52It took six days.
0:53:52 > 0:53:54Started on Monday, finished on Saturday night.
0:53:54 > 0:53:56I knew we could do it, and we did it!
0:53:56 > 0:53:58He's a liar.
0:53:58 > 0:54:00We finished on Sunday, last night!
0:54:00 > 0:54:04- He's lying!- Only the last day!
0:54:05 > 0:54:08Guys, guys, let's not quibble over one day!
0:54:08 > 0:54:12You're already in the Homes under the Hammer fastest teams' hall of fame!
0:54:17 > 0:54:22And in that record time, they've installed an electric water heater in the loft.
0:54:24 > 0:54:27That cost £350.
0:54:27 > 0:54:29But how did the rest of the spend go?
0:54:29 > 0:54:33Did they stick to their budget of four to five thousand?
0:54:33 > 0:54:37It went pretty good. Basically we did it in £4,200.
0:54:37 > 0:54:43That £4,200 spend on top of the 27,000 Kas paid at auction,
0:54:43 > 0:54:48takes his total investment here to £31,200.
0:54:48 > 0:54:50And he's already got a tenant lined up.
0:54:51 > 0:54:56Time to see what a couple of local estate agents will make of this fast show.
0:54:56 > 0:54:58Does it suit you, sir?
0:54:58 > 0:55:01The property itself has been refurbished
0:55:01 > 0:55:05to a standard that I would call "good enough to rent."
0:55:05 > 0:55:10The finish in here is absolutely fine. Very neutral, inoffensive decor.
0:55:10 > 0:55:12Tenants will be extremely happy with it, yes.
0:55:12 > 0:55:15If he was looking to resell the property,
0:55:15 > 0:55:17I would suggest a few more changes.
0:55:17 > 0:55:22I would put double glazing in. I might have chosen a different kitchen.
0:55:22 > 0:55:28So, will the estate agents value the flat at more than the £31,200 Kas has invested here?
0:55:28 > 0:55:34Currently I would put a market value in the region of £44,950.
0:55:34 > 0:55:38If he was to sell the property, and make the changes I've suggested,
0:55:38 > 0:55:41I would value this property at £59,000.
0:55:41 > 0:55:46As it stands, then, a gross profit before taxes and expenses
0:55:46 > 0:55:49of £13,750.
0:55:49 > 0:55:51And potentially, if those changes were done,
0:55:51 > 0:55:54£27,800.
0:55:54 > 0:55:57- Very good.- As I say, it's not really relevant
0:55:57 > 0:55:59cos we're not going to sell it, but it's good to know.
0:55:59 > 0:56:04No, Kas bought this flat with the intention of generating a yield of 20%.
0:56:04 > 0:56:08To achieve that with his investment of £31,200
0:56:08 > 0:56:13he needs a rental valuation of £520 a month, or more.
0:56:13 > 0:56:16This particular property I feel would rent in today's market
0:56:16 > 0:56:19around £495 per calendar month.
0:56:19 > 0:56:23The rental for this property, furnished, would be £500 per calendar month.
0:56:23 > 0:56:25Well, a whisker under 20%.
0:56:25 > 0:56:27But Kas is delighted.
0:56:27 > 0:56:33500 a month is 6,000 a year. And we bought for 27.
0:56:33 > 0:56:37After everything's done up, it's cost us about 31.
0:56:37 > 0:56:40And that's basically exactly 20%.
0:56:40 > 0:56:44- So we've done really well, I think. - Mm, yes. Excellent.- Well done!
0:56:44 > 0:56:46Well done. Thank you!
0:56:46 > 0:56:48And don't do it again!
0:56:51 > 0:56:54Not enough for you? Well, there's plenty more where they came from!
0:56:54 > 0:56:57So make sure you join us next time on Homes under the Hammer.
0:56:57 > 0:56:59- We'll see you then.- Goodbye! - Goodbye!
0:57:21 > 0:57:23Subtitles by Red Bee Media Ltd