Episode 57 Homes Under the Hammer


Episode 57

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Hello! Despite tough market conditions,

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people still want a slice of the property action.

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And if you're prepared to take the plunge,

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auctions can be a great place to start.

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Yes. It can be fraught, it can be fantastic.

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But it's certainly worth giving it a go, buying your home under the hammer.

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Some lots are very popular at auction.

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Others go unsold.

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So the auction room can be a difficult place to conquer.

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Here are the properties that won the hearts of the buyers on today's show.

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This cottage in Devon has plenty to get excited about.

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Oh, boy, this doesn't disappoint. This winding staircase is absolutely charming.

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I've got a plan for these two flats in Ilford.

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It just needs a complete refurb. It needs some TLC. Put the love back!

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In Openshaw, Manchester, just getting into this top floor flat

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is the first challenge.

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That's a first!

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All of these properties sold at auction.

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We'll find out who bought them and what they paid for them when they went under the hammer.

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The name of this village is as quaint as it looks.

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Ipplepen in Devon, near Newton Abbot,

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just oozes history and a sense of permanence.

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So I hope that the auction lot that went under the hammer

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will be the cream of the crop.

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The property I'm here to see is exactly what you'd hope to find

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in a cute little Devon village like this.

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It's a two-bedroomed, listed, character cottage

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at a guide price of £79,000.

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Now, I'm already really excited because I think there might be an incredible fireplace downstairs.

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You know why? Look at that chimney!

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It certainly has loads of chocolate box charm,

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but how does it stack up on the inside?

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Fingers crossed!

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Wow!

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Fantastic!

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I think you'd probably call that an inglenook sort of.

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Maybe not completely.

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You've got these little bits on the side, probably where the bread oven went.

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Somebody's put a wood burning stove in there, a very practical thing to do.

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It means it can actually function as a fireplace.

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But what a fantastic centrepiece for the room.

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And the room itself, one big room downstairs is basically what you've got.

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But I like that, because often a cottage like this

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might feel quite cramped and claustrophobic.

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But the fact you've got one big space makes it, I don't know, liveable in.

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Lots of original beams, stuff like that.

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Looking good so far.

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Through to the kitchen.

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And, well, it's cute!

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A little bit more claustrophobic in here.

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But so much character. These little windows, the reveals on the windows.

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Obviously a few signs of damp here and there.

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You'd expect that.

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But as a starting point, this place does not disappoint. Oh, no.

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At the rear of the property there's a funny lean-to porch

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which is hardly in keeping with the cottage's Grade II listing,

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but it's a different story upstairs.

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Well, you'd hope for something with a bit of character when it came to the stairs

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and oh, boy, this doesn't disappoint.

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This winding staircase, absolutely charming.

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I have to say...

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Yeah, watch your head here and everywhere else.

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It's a big strange. That's lots of false walls

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which have been put in to separate out the rooms up here.

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But it's just incredible when you come up to this first floor.

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Ceiling bowed all over the place. Look at the thickness of the walls!

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It is what it is, isn't it?

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This amazing, old, higgledy-piggledy

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charming kind of cottage.

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It's very easy to get carried away

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with what this place is,

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but at some stage you are going to have to try and restore this,

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and that will open up all sorts of problems.

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Look at the way the ceiling here is all bowed.

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When you take that down, it's probably going to create all sorts of issues.

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Probably lath and plaster and because it's listed, it'll have to go back.

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As it's Grade II listed everything that's done will have to be approved and done by a specialist.

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It'll cost you a fortune.

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Do you care? No.

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No!

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-#

-I don't care if the sun don't shine

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-#

-I get my lovin' in the evening time

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-#

-When I'm with my baby.

-#

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Nope, I don't care that the tiny bathroom is dominated by an ugly water tank,

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or that the bathroom also leads to a bedroom that would be too cramped for a Hobbit!

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And I really, really don't care

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that it needs lots and lots of work.

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That guide price of 79,000 was very attractive

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but as a Grade II listed cottage,

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it will sadly be far from trouble free

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and it has no outside space.

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What does a local estate agent think?

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The property itself does need some work doing to it.

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It hasn't been renovated for quite some time,

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so it is in a basic condition where the kitchen and bathroom

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and the property itself needs to be done throughout.

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'So if you did the work,

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'what kind of rental could you get for the cottage?'

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Once renovated, I think this property would fetch about £650 per calendar month.

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'What about selling the place on?'

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If this property is done up to a good standard throughout,

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the resale value would be 165 to £170,000.

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Well, any property of this age is going to have its problems.

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But I think, in general, this place is pretty good.

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You know, whoever bought this wouldn't have been looking at the damp,

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or looking at the weird placement of the rooms.

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They would have just absolutely fallen in love with its charm.

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Who can blame them? Let's find out who bought it when it went under the hammer.

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Grade II listed, two-storey, two-bedroomed period cottage for modernisation.

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A proper cottage.

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Guide price is 79. We'll round that up to 80. Who'll start me at 80?

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Thank you. Good man. That's the way. 80 I've got.

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At 80. At 80,000. At 80.

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82. 83.

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84. 85.

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86 in purple at the back. 86.

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87. 88.

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89. 90. At 90.

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At 90. Here he goes again at 91.

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At 91. Need two from one of you.

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First one who says it... 92.

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93. At 93. 94.

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95. Coming back down to 96.

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97.

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98. 99.

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100.

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101 is you, sir.

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101.

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102. 103.

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104.

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105. 106.

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107. 108.

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109.

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110.

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Eleven.

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At 111 at the back. I'll take a half...

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111,500.

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112.

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112.

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112. Are you sure? OK.

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At 112, then, stood at the back in the purple t-shirt.

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He's got it at 1-1-2.

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Sir, yours. Well done.

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That successful bid of 112,000,

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33,000 over the guide price, came from Phil.

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Along with his wife, Donna,

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he runs a company selling decorative interiors.

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You know, furniture and stuff.

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I caught up with Phil at his purchase to find out his plans.

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-Phil, congratulations.

-Thank you.

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I'm sure there's a lot of people must be very jealous of you!

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-Amazing place.

-It's a lovely cottage.

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We've been looking for the best part of 18 months

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to find a little project like this.

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So we're quite pleased, actually.

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It ticks all the boxes. It's quite idyllic, really.

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Is this a place for you to live?

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No, we're probably not going to live here.

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But it's got masses of potential as a buy-to-let, as a holiday cottage,

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and we may use it - we've been asked by magazines

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if they want to come and photograph our stuff in the cottage.

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-Oh!

-So that's quite exciting, perhaps as another dimension to what we do.

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Wow. So using it as a basis for a photo shoot.

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Yeah, I think it could be interesting.

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'It may not be ready for a close-up at the moment,

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'but if Phil renovates this cottage sympathetically

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'and fills it with choice furnishings,

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'he could indeed end up with a model property.'

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So tell me what you're going to do with the little cottage to sort it out.

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We're going to change upstairs. We'll relocate the bathroom, perhaps to the middle

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and make the smaller bedroom larger.

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The floors need levelling.

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Anything you do, you'll have to get Listed Buildings Approval.

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Yeah, we've already had a chat with the conservation officer

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to see what we're allowed to do.

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We'll work alongside them.

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A lot of people don't realise that listed buildings, it's what you do inside as well.

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It covers, if you wanted to hack off the plaster

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or change the floor or do whatever, other than simple painting,

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they can have a say in that, can't they?

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Definitely. I like to listen to what they've got to say.

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We like to preserve the building.

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It's 300 years old. It deserves some respect

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in terms of how you actually change it.

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'So, open plan living and glossy kitchen units are out on this one.

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'Phew!'

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So what's the budget for the work?

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A good 12, probably. Possibly maybe to 15.

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-We'll see!

-Who's doing the work?

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A local builder from Dartmouth.

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-Oh.

-And we hope he'll do a good job.

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Has he given you any idea of timescales?

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It's only a little cottage, so I don't think it'll take more than a couple of months

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at the latest. Three months.

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Trouble with old things, you don't know what you'll find when you start poking about.

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Again, the builder reassures us

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that there's not too much unforeseen.

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There is perhaps with the chimney,

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but we're assured that it's going to be all right!

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'Well, full marks for confidence, Phil!'

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-#

-Don't worry

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-#

-About a thing

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-#

-Cos every little thing

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-#

-Gonna be all right.

-#

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'But I can't help worrying that his 15 grand budget will disappear in a flash

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'although this is not his first renovation project.'

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We bought a little house in France.

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That wasn't, again, too big a project.

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Cos you don't speak the language, don't know the rules, don't know how it works there.

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That was a great challenge. Get yourself understood and get the job done.

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And achieve a result, which again, takes quite a bit of doing.

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So this shouldn't be anything by comparison, really.

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A piece of cake!

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Well, there's no doubt that Phil's got himself an incredible little property here.

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However, with such character comes all sorts of unknowns

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and for that, I think, you need to set aside a really big budget.

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I don't think 12 grand is going to do it.

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My guess? Double that.

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You can find out how he gets on later in the show.

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Today I'm in Ilford, Essex, which was once home to John Logie Baird.

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He, fact fans, was the Scottish inventor who built the first working TV

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and I, for one, am very glad he did!

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I'm here today to see an attractive double-fronted period property

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that's been arranged as two two-bedroomed flats.

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Now, it had a guide price of £330,000.

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It certainly looks impressive from here!

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This is a substantial property

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which, up close, looks like it may be in need of a substantial amount of work.

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Let's take a peek inside.

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Well, this is a big old property.

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Nice high ceilings, just what I like to see.

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It's in a bit of a state, though, and you can really smell the damp.

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But a wonderful size room,

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beautiful big window, already double-glazed.

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You can see there's central heating. It just needs a complete refurb.

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It needs some TLC. Put the love back!

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This room I'm in at the front is called Bedroom Two in the auction catalogue.

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Down the hall, the room behind it, is Bedroom One,

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which overlooks the garden.

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Across the hall is the kitchen.

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And behind that, in an extension, is the former utility room

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which, according to the catalogue, leads to the bathroom!

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To the front of the kitchen is the living room,

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a fabulous size, but I'm not so sure about the brick fireplace!

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The flat upstairs has a similar layout.

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The rooms have grand proportions, yet it all feels a little pokey.

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This property deserves to be turned back into a fantastic family home

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and restored to its full grandeur.

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Financially, that's also the best option.

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Similar-sized houses in the local area sell for as much as 550,000

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while sub-divided flats sell for 200 grand each.

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And, even better, planning permission has already been granted

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to turn this back into a home, including the addition of a loft conversion.

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Having looked on the council website recently,

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what I found interesting was that the council don't want to create lots of homes

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within a house like this.

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In fact, they'd rather turn this back from two separate dwellings into one big family house.

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Now, here are the plans that come with this auction lot.

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You've got as it is, and the proposed plans.

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So we've got the ground floor here

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and some really super living areas.

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It's so lovely to have all this space to play with

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and imagine a family living in it.

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You've got one, two, three big family living areas,

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a nice L-shaped kitchen at the back.

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Up on the first floor, you've got one, two, three, four really good-sized bedrooms.

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Up some stairs to the loft space,

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you've got a really good L-shaped bedroom up there

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with an en-suite bathroom.

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Can you imagine what a cracking family house this is going to be once converted?

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Really, really good.

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We asked a local estate agent for his opinion of this property,

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which had a guide price of 330,000.

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First, let's find out more about its location.

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You're in north Ilford, which is predominantly a commuter belt.

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Houses don't come up for sale here very often,

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it's a place where they find, they like the area and they stay for a long time.

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Now, if this flat was renovated with its current layout

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of two two-bedroomed flats,

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how much could each flat achieve if rented out?

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You could rent the two-bedroomed flats for about £750 per calendar month.

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That's a combined rental return of £1,500 per calendar month.

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But if the property was converted as per the plans,

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it could achieve as much as £1,600 per calendar month.

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Now, what about sale valuations?

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The two-bedroomed flats you could sell on for £200,000.

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Added together, that's a grand total of £400,000.

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But renovate the property using the pre-approved plans

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and the estate agent believes it could sell for 550,000.

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Oh, there is a lot of work ahead for the new owner.

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But at least this property comes with full planning permission.

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I think the plans are good, plus conversion sees the biggest return.

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And that's what it's about.

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Let's see who fancied this challenge when it went under the hammer.

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Who'd like to kick off on this?

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300? I'll take 300.

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300 straight off.

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305.

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310. 315.

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320.

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325.

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330 on the phone.

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-330.

-330.

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335 with you.

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340.

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At 335. 336?

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336.

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337.

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The bids were flying fast and furious.

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We rejoin the auction action at 350,000.

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350 with you.

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351 elsewhere?

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351.

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Back in. 352?

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352.

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353.

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To the phone?

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In the room at 352.

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First time. Second time.

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Third and last time. Have you all done?

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That cheery chap who made the winning bid of 352,000

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is Asif.

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He manages a mobile phone business

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and has renovated two properties previously.

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-Asif, congratulations.

-Thank you.

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Tell me, what is the grand plan for this property?

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We've got two plans. Plan A, to make it four flats.

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And Plan B, to make it a big house with six bedrooms.

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But we'll go first with Plan A, subject to planning permission.

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I know this property comes with planning permission anyway

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-to convert it back into a family house.

-Yes.

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But you want to take it one stage further and put more bedrooms in?

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Yes, because we have checked the architect which we got with the planning permission,

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but that's not ideally what we suppose to do with it so we're going to change it.

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We will go with Plan A first.

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If we make it four flats, it's going to be easy to sell.

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OK, Plan A. Four flats. It's currently laid out as two flats.

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How is the layout going to work?

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It's going to be two two-bedroomed on ground floor with gardens.

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And one one-bedroom on the first floor.

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And one two-bedroomed with a reception on first floor

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and two rooms in the loft

0:20:110:20:12

both of them with en-suites.

0:20:120:20:15

What do you think the chances are of getting planning permission on that?

0:20:150:20:18

I spoke to my architect. That's why we've got Plan A and Plan B.

0:20:180:20:23

If Plan A fails, Plan B obviously is not going to fail

0:20:230:20:27

because we know we can get it easily.

0:20:270:20:29

'I have my doubts that Asif's plans for four flats will be looked upon favourably by local planners.

0:20:290:20:36

'And is the benefit of six bedrooms worth the expense and delays

0:20:360:20:39

'when he could start right away using the already passed plans for a five-bedroomed house?'

0:20:390:20:45

What sort of budget have you set aside to renovate four flats?

0:20:470:20:51

How much money do you need for that?

0:20:510:20:53

£90,000 off the mark that we got for it.

0:20:530:20:58

If we're going to make it one house,

0:20:580:21:00

we'll spend somewhere around 65 to £70,000.

0:21:000:21:04

What's your timescale, Asif, if you go with Plan A?

0:21:040:21:06

Plan A, three to four months.

0:21:060:21:08

And what if it's Plan B? Quicker? Sooner?

0:21:080:21:11

Yeah, quicker, because then we don't need to do so much work.

0:21:110:21:14

No gas meters, no extra boilers,

0:21:140:21:17

so everything's going to be less work for the house.

0:21:170:21:21

'It seems to me that schedule-wise and budget-wise,

0:21:230:21:26

'the option of converting this into a house

0:21:260:21:28

'should be Plan A rather than Plan B.

0:21:280:21:31

'As Asif runs a mobile phone business

0:21:400:21:42

'and only recently decided to try property developing,

0:21:420:21:46

'could it end up being his calling?'

0:21:460:21:48

I bought two properties and I'm still doing it.

0:21:480:21:51

And this is the big project which I want to do.

0:21:510:21:54

Do you have another business as well?

0:21:540:21:55

Yes, I do mobile phone business.

0:21:550:21:57

-So you're a busy man. You've got the mobile phone business and you're dabbling in property.

-Yes,

0:21:570:22:02

both together.

0:22:020:22:04

Do you get involved with the renovations? There's an awful lot of work to do on this building.

0:22:040:22:09

The plan is that I'll be around all the time.

0:22:090:22:12

I will do a visit every single day to the property.

0:22:120:22:16

Yes. But I will not make my hands dirty because I don't have time for that.

0:22:160:22:21

Is it going to be flats? Is it going to be a family house?

0:22:210:22:24

Well, I can't wait to find out what happens.

0:22:240:22:27

-Asif, it's been great meeting you.

-Thank you.

-Good luck with this project.

-Thank you so much.

0:22:270:22:32

I love Asif's enthusiasm for this project,

0:22:340:22:37

but I do worry about his Plan A,

0:22:370:22:39

especially with the current planning history on this road.

0:22:390:22:42

It seems to be a bit anti-flats.

0:22:420:22:44

At least he does have a Plan B

0:22:440:22:46

if his ideas are rejected.

0:22:460:22:48

So, will we return to find four flats or a large family home?

0:22:480:22:54

You can find out later in the programme.

0:22:540:22:57

'Coming up: in Openshaw, Manchester,

0:22:580:23:01

'there'd been some unwanted changes to this first floor flat.'

0:23:010:23:04

A-ha! That's where the front door is!

0:23:040:23:07

In Ilford, will it be Plan A or Plan B?

0:23:080:23:12

Whoever's going to buy it, they'll be very happy with it

0:23:120:23:15

because we did extremely good work on it.

0:23:150:23:18

But first, we go back to Devon.

0:23:200:23:22

Has Phil been busy with this cottage?

0:23:220:23:24

It's been a lot of hard work, but it's paid off.

0:23:240:23:28

It's time to return to the ever-so quaint village of Ipplepen in Devon,

0:23:310:23:37

and this delightful 300-year-old Grade II listed two-bed cottage.

0:23:370:23:42

I was very taken by its quaint character and rustic charm.

0:23:470:23:53

It's just incredible when you come up to this first floor.

0:23:530:23:58

Not even the dank odour of damp could kill my ardour for this cottage.

0:23:590:24:03

Its Grade II listing meant the renovation would be far from simple.

0:24:030:24:08

But...

0:24:080:24:09

Do you care? No.

0:24:100:24:12

No.

0:24:130:24:14

I was, simply, smitten.

0:24:140:24:16

As was Phil, who, with his wife Donna

0:24:170:24:20

purchased the property at auction for 112,000.

0:24:200:24:23

That's 33,000 over the guide price.

0:24:230:24:26

I'm sure there's a lot of people who'll be very jealous of you!

0:24:260:24:30

It's a lovely cottage. We've been looking for the best part of 18 months to find a project like this.

0:24:300:24:37

It's quite idyllic, really.

0:24:370:24:39

The couple have restored character properties like this previously.

0:24:410:24:45

Ten months later, we're back to see how they've done.

0:24:470:24:50

Have they brought this place back to life?

0:24:510:24:53

This lovely little cottage looks like it's got at least another 300 years of life left in it

0:25:180:25:23

thanks to Phil and Donna's hard graft.

0:25:230:25:26

We're quite relieved it's finished.

0:25:300:25:32

It has been a lot of hard work.

0:25:320:25:35

But it's worked out very well, I must say.

0:25:350:25:39

And I have to agree.

0:25:420:25:44

The monumental task of renovating this property

0:25:440:25:47

began by digging out the floor on this level

0:25:470:25:50

in order to add a damp proof membrane,

0:25:500:25:53

no easy task, before fitting the slate tiles in the living area and kitchen,

0:25:530:25:58

where Phil's good work continued.

0:25:580:26:00

In this corner, there's new plumbing work.

0:26:130:26:15

The window sill is new, the beam's been exposed, the stonework.

0:26:150:26:20

And this piece of wood's been sculptured to fit into this section.

0:26:200:26:24

This attention to detail and sensitive restoration

0:26:240:26:28

is in evidence throughout

0:26:280:26:30

and was completed in keeping with the property's Grade II listing.

0:26:300:26:33

So the walls were replastered using a specialist lime-based treatment

0:26:330:26:39

and decorated using a chalk-based paint.

0:26:390:26:42

We spoke to Conservation at the beginning.

0:26:420:26:44

They're very good in their advice.

0:26:440:26:48

We obviously didn't ignore that

0:26:480:26:51

and carried on with the project of restoring the house, really,

0:26:510:26:57

to its full character, full potential.

0:26:570:27:00

In the master bedroom, I adore the exposed beams,

0:27:020:27:07

now they've been stripped and sanded clean of the crusty black paint.

0:27:070:27:10

Well, we've uncovered the beams,

0:27:130:27:16

replastered throughout,

0:27:160:27:18

put new wiring in.

0:27:180:27:19

We uncovered this, which was underneath wallpaper, and made good.

0:27:190:27:24

The window sills are new.

0:27:240:27:26

And repainted.

0:27:270:27:30

In the bathroom, work is still to be completed,

0:27:350:27:38

but overall I'm really impressed by the quality craftsmanship

0:27:380:27:42

and Phil's team of tradesmen.

0:27:420:27:44

The renovation's taken four months to get to this stage.

0:27:450:27:48

Phil and his wife spent the first six months researching the best methods

0:27:480:27:53

to restore a Grade II listed property such as this.

0:27:530:27:57

I was concerned that their budget of 12 to £15,000

0:27:570:28:00

seemed a bit tight for a Grade II restoration.

0:28:000:28:03

So, how did it turn out?

0:28:030:28:06

We spent about 25,000. Because of the nature of the property,

0:28:060:28:10

we had to repair quite a lot of the building.

0:28:100:28:13

And that's added to the costs.

0:28:130:28:16

Add the £25,000 outlay so far

0:28:170:28:20

to the purchase price of 112,000

0:28:200:28:22

and that means a total investment to date of £137,000.

0:28:220:28:27

So, while Phil has brought this cottage back to life,

0:28:290:28:32

will it bring him back a profit?

0:28:320:28:35

We invited two local property experts to give us their opinions,

0:28:400:28:44

including the one who viewed the cottage previously.

0:28:440:28:47

Coming back to the property again today,

0:28:470:28:50

it's really good to see that the transformation's gone through.

0:28:500:28:53

It looks really good throughout. Very light, bright,

0:28:530:28:55

and a very nice property.

0:28:550:28:57

It's fantastic.

0:28:570:28:58

It's everything you want from "Ye Olde Cottage".

0:28:580:29:02

Beams everywhere, log fire,

0:29:020:29:05

lovely kitchen, stone reveals to the windows.

0:29:050:29:09

It's just the business.

0:29:090:29:11

So, the property experts are impressed, quite rightly too.

0:29:120:29:16

How much do they believe the property could achieve if sold,

0:29:160:29:20

bearing in mind Phil's total outlay to date of 137,000?

0:29:200:29:24

If I were to put this property on the market, I'd be looking at a figure

0:29:250:29:29

of 165 to £170,000.

0:29:290:29:32

I'd put the property on the market at 179,950.

0:29:320:29:37

Those figures, if achieved,

0:29:370:29:39

would give the couple a pre-tax profit

0:29:390:29:41

of between 28 and just under £43,000.

0:29:410:29:44

But Phil feels the cottage is worth more

0:29:460:29:49

and has had an independent valuation of 190,000.

0:29:490:29:53

Now, what about rentals?

0:29:540:29:56

I'd be looking at achieving between 650 and £700 per calendar month.

0:29:560:30:01

On a per calendar month basis, I'd be looking to achieve around £700.

0:30:010:30:06

That could give Phil and his wife a rental yield of between 5.5 and 6.5 per cent.

0:30:060:30:12

So, will they sell up or let it?

0:30:120:30:15

We're probably going to sell it, actually.

0:30:160:30:18

Sell it, reluctantly.

0:30:180:30:20

But there's a need for homes in this particular area

0:30:200:30:26

and I think it'll be a lovely home for a nice young family.

0:30:260:30:30

Developing property for financial reward is sometimes the name of the game.

0:30:420:30:47

However, if you can also bring a 300-year-old cottage like this back to life

0:30:470:30:51

for many more generations to enjoy,

0:30:510:30:54

then the rewards are far greater than money alone.

0:30:540:30:58

For the next property that went under the hammer, I'm in Manchester.

0:31:060:31:10

Well, in any great city, there's often an area

0:31:110:31:15

which hasn't yet benefited from regeneration or positive movement in terms of house prices.

0:31:150:31:21

However, those can be the areas to really look out for if you're a property investor

0:31:210:31:26

because the theory goes the prices are only going to go one way.

0:31:260:31:31

Well, such is the situation here in Openshaw, Greater Manchester.

0:31:310:31:35

It's got good connections into the city with road and rail links,

0:31:350:31:39

good local amenities, and yet property prices are still fairly low.

0:31:390:31:42

Which means if you're a buy-to-let investor,

0:31:420:31:45

the potential for yields is very high.

0:31:450:31:49

So this is an area where you can buy a home or invest

0:31:500:31:53

without spending a fortune.

0:31:530:31:55

There are certainly signs that there is some investment in the area.

0:31:550:31:59

The property I'm here to see sounds like it could fit the bill perfectly.

0:32:000:32:04

It's a fairly modern two-bedroomed flat in this building here.

0:32:040:32:08

It's actually the upstairs flat.

0:32:080:32:10

Let's take a look, because of course it depends on what it's like inside.

0:32:100:32:14

Right. It doesn't have a door.

0:32:180:32:21

That's a first!

0:32:240:32:25

Great!

0:32:260:32:28

The flat went to auction guided at 25,000.

0:32:290:32:33

A-ha! That's where the front door is!

0:32:340:32:37

That's one of the first jobs to do,

0:32:370:32:39

make the place properly secure.

0:32:390:32:42

But what have we got? This is the living area.

0:32:420:32:45

Hmm, you know. I mean, yes, it's a mess,

0:32:450:32:48

but given the age of the building, I wouldn't expect any major structural issues

0:32:480:32:53

so you've just got to see through what is a fairly chaotic state at the moment.

0:32:530:32:59

Likewise here in the kitchen.

0:32:590:33:01

Basic total refurbishment required. Also no double glazing. You'd want to put that in.

0:33:010:33:07

Electric storage heaters, so you might think about some kind of combination boiler

0:33:070:33:11

or basically, central heating.

0:33:110:33:13

New kitchen, probably new bathroom.

0:33:130:33:15

But as flats go, it's not a bad size.

0:33:150:33:19

The two bedrooms look a lot worse than they really are.

0:33:190:33:22

I think that once cleaned up and decorated, they should be fine.

0:33:220:33:26

Let's hope that on auction day,

0:33:260:33:28

the new owner secured the flat near to that £25,000 guide price

0:33:280:33:32

and has funds standing by to patch it up.

0:33:320:33:36

Because the missing front door was just the beginning of the work needed here.

0:33:360:33:40

Down this little corridor, you've got a bathroom, definitely in need of complete re-doing.

0:33:410:33:47

Storage cupboard there.

0:33:470:33:49

First of the bedrooms on this side, not a bad size.

0:33:490:33:51

The second bedroom, a bit of a box room

0:33:510:33:53

but again, not too bad.

0:33:530:33:56

So why would you bother with this place?

0:33:560:33:58

Let's just look at those numbers again.

0:33:580:34:00

Say you get this for around that guide price of £25,000.

0:34:000:34:05

Around here, this sort of place, done up,

0:34:050:34:07

is going to rent out between 450-ish and £500 a month.

0:34:070:34:13

Yeah,

0:34:130:34:14

so that's over, round about, £5,000 a year

0:34:140:34:19

for a £25,000 investment.

0:34:190:34:21

Let's add in a little bit to do up the refurbishment

0:34:210:34:23

and you've still got money - you're still on for something like a 20% yield.

0:34:230:34:29

The amount of money you've spent and what percentage of that you're getting back every year, 20%.

0:34:290:34:33

That means that in five years,

0:34:330:34:36

you would have completely paid for this place.

0:34:360:34:38

After that, everything you get from it is complete profit.

0:34:380:34:41

That's why somebody will buy it!

0:34:410:34:43

Ker-ching! So, this property then becomes a slot machine

0:34:440:34:49

paying out every month.

0:34:490:34:51

You'd barely have to press a button or pull a handle.

0:34:510:34:54

But there's one potential expense outside that could creep up on you.

0:34:540:34:59

At the front of the property, I walked past it quickly on my way in,

0:35:000:35:04

but I shouldn't have, because there is this plant.

0:35:040:35:07

Looks fairly innocuous.

0:35:070:35:09

But this thing is an absolute nightmare.

0:35:090:35:11

It's called Japanese knotweed.

0:35:110:35:14

It's not actually on the grounds of the flat or the building itself.

0:35:140:35:18

It's on the adjoining plot, but that doesn't matter.

0:35:180:35:21

This little devil has roots that go down, go into concrete, undermine foundations,

0:35:210:35:26

it's absolutely horrendous.

0:35:260:35:28

It's really difficult to get rid of as well.

0:35:280:35:30

It's so bad, it's notifiable, you have to tell the council you've got it,

0:35:300:35:34

and then pay somebody to get rid of it professionally.

0:35:340:35:37

Not good news, but it's got to go!

0:35:370:35:40

So let's hope this flat doesn't become a knotty problem

0:35:450:35:49

for some unsuspecting buyer.

0:35:490:35:51

And while we're on the subject of greenery,

0:35:510:35:53

the other bad news is that the flat upstairs doesn't have access to the sizeable garden area.

0:35:530:35:58

That all belongs to the downstairs property.

0:35:580:36:02

On the good news front, it does have a parking space.

0:36:020:36:06

We invited a local estate agent to come and have a look around.

0:36:070:36:10

Would he recommend any structural changes?

0:36:100:36:13

I wouldn't change any walls, move anything around in the property.

0:36:140:36:18

The layout is as it is, and it's a good layout for a two-bed apartment.

0:36:180:36:22

But you would be changing the bathroom, the kitchen,

0:36:220:36:25

you may, if there's a gas supply to the property, change the electric storage heaters

0:36:250:36:29

for gas central heating.

0:36:290:36:30

'And if you were going to live here as a tenant,

0:36:300:36:33

'what rent would you expect to pay?'

0:36:330:36:35

Once this property has been fully refurbished,

0:36:350:36:38

I'd expect it to bring a rental value of between £375 and £395 per calendar month.

0:36:380:36:45

'How much does the estate agent think the flat could be valued at

0:36:450:36:48

'after a full refurbishment?'

0:36:480:36:50

Once this property has been refurbished, the re-sale value of it

0:36:500:36:54

would be between £55,000 to £60,000.

0:36:540:36:59

A slight downside to the flat is you don't have any outdoor space.

0:36:590:37:05

You've got right of access, but this garden isn't yours. It belongs to the downstairs flat.

0:37:050:37:10

But with those kind of rental yields possible, who cares?

0:37:100:37:14

This is a great one to go for. Let's see who agreed when it went under the hammer.

0:37:140:37:19

Lot four. Two-bedroomed upper-floor flat.

0:37:190:37:23

Got a bid on this already at £10,000

0:37:230:37:25

but it's not going to go for 10,000. 10,000 I have on my right.

0:37:250:37:29

12,000. 12,000 on my left, seated.

0:37:290:37:32

14.

0:37:320:37:33

At £14,000. Do we see 16?

0:37:330:37:36

At £16,000. Thank you.

0:37:360:37:39

At £16,000. 17,000. Thank you.

0:37:390:37:42

At 18. At 18,000. 18 I have.

0:37:420:37:44

19. At £19,000. Are we done? Do we see 20?

0:37:440:37:49

20,000 on my right, then.

0:37:490:37:51

At £20,000. I'll take a half.

0:37:510:37:54

At 20,000. 500.

0:37:540:37:55

21, now. It's against you, sir.

0:37:550:37:58

At 21,000.

0:37:580:37:59

21,500. 22.

0:37:590:38:02

At 22. 22,500.

0:38:020:38:04

22,500. 23.

0:38:040:38:06

At 23,000. New bid, 23,500. 24?

0:38:060:38:10

At 24. 24,500.

0:38:100:38:13

25. At £25,000.

0:38:130:38:16

25,500. 25,500, new bid.

0:38:160:38:19

26? At 26.

0:38:190:38:21

26,500. 27?

0:38:210:38:24

No. At 26,500, then, seated.

0:38:240:38:26

For the first time. No, he's back in again.

0:38:260:38:29

At £27,000.

0:38:290:38:30

27,000 for the first time.

0:38:300:38:33

Second time. Third and final time.

0:38:330:38:36

There we go, sir. Your paddle number?

0:38:360:38:38

That successful bidder who paid £27,000,

0:38:380:38:42

was Kasim, or Kas, as he's known, here on the left with his builder Naz.

0:38:420:38:46

Kas is a doctor of chemistry,

0:38:460:38:49

so let's hope he's got a successful formula up his sleeve

0:38:490:38:52

for renovating property.

0:38:520:38:54

But as his builder's come to give the flat the once-over,

0:38:540:38:57

maybe they're only at the experimental stage with it.

0:38:570:39:01

-Kas, Naz, great to meet you both.

-Hi.

-Congratulations.

0:39:050:39:09

-Thanks.

-Tell me why you wanted to buy the place.

0:39:090:39:11

I've been looking for places like this for a while.

0:39:110:39:13

I'm looking for places which produce about a 20% yield.

0:39:130:39:18

It was in the auction for £25,000 guide price. I got it for 27.

0:39:180:39:22

And maybe three or four thousand pounds work.

0:39:220:39:26

And I think I could rent this for £500 a month.

0:39:260:39:30

Which works out at a 20% yield.

0:39:300:39:32

Well, he's a man after my own heart, with those returns.

0:39:320:39:35

There isn't much Kas doesn't know about turning a profit on property.

0:39:350:39:39

He learned a lot when he started helping out with his father's property business.

0:39:390:39:44

And it all went upwards from there.

0:39:440:39:46

Kas has a buy-to-let portfolio of 40 or so properties.

0:39:460:39:49

Until five years ago, he had a contract with the Home Office

0:39:490:39:54

to provide housing for 5,500 people.

0:39:540:39:57

But when that contract ended in 2007,

0:39:570:40:00

he ended up doing something completely different.

0:40:000:40:02

After that, I bought a restaurant.

0:40:020:40:05

I ran the restaurant for a couple of years.

0:40:050:40:08

Then got very bored and went to India, bought a farm, set up a dairy,

0:40:080:40:13

we're selling the milk.

0:40:130:40:15

And ran that, and then came back here and started doing this again.

0:40:150:40:19

Kas has a PhD in chemistry from Oxford.

0:40:200:40:23

But he's swapped the periodic table for flat-pack tables

0:40:230:40:27

to furnish his growing buy-to-let portfolio.

0:40:270:40:30

And his builder Naz is a crucial element in the equation.

0:40:310:40:35

So what are the plans and the budget here?

0:40:350:40:38

We're going to rip the whole bathroom, and the kitchen.

0:40:390:40:42

All the rooms. We're looking in the region of four to 5k to sort it out.

0:40:420:40:49

-How long do you think it'll take?

-A couple of weeks.

-Two weeks?!

0:40:490:40:53

-Well, nine days, then.

-Nine days?!

-In that region.

0:40:530:40:57

I wasn't suggesting you go less, I was suggesting more!

0:40:570:41:00

We've got a team of workers that come in at a particular time, do their bit and go.

0:41:000:41:05

The next batch will come in and do whatever they need to do,

0:41:050:41:08

-like plumbing the whole place.

-Wow.

-Yeah.

0:41:080:41:10

We don't mess about!

0:41:100:41:12

So, Kas, obviously you've employed a super-builder!

0:41:120:41:17

-Is that really important?

-It's very important

0:41:190:41:22

because from today I'm paying council tax on this property.

0:41:220:41:25

And I've already got tenants who want to move in to this property.

0:41:250:41:31

-So, basically, a week from today...

-Hopefully. Nine days.

0:41:310:41:34

-I'm saying six days, he's got to finish it in six days!

-Nine days!

0:41:340:41:38

'Well, he makes it sound incredibly easy,

0:41:400:41:42

'but is, in fact, working hard for his money.

0:41:420:41:45

'He has a very refreshing approach to forming a good relationship with his tenants.'

0:41:450:41:49

I don't ask them to put the money in my bank

0:41:490:41:52

and not ever bother coming to the properties.

0:41:520:41:54

I come and meet the tenants on a monthly basis.

0:41:540:41:58

I sit with them, pick up the rent and have a look around the house.

0:41:580:42:02

Also, I have a good chat with them.

0:42:020:42:03

So I know their brothers, their sisters, their children.

0:42:030:42:06

And they invite me to their birthday parties!

0:42:060:42:08

And if you do that kind of thing, people become shy about not paying you rent

0:42:080:42:14

because they know you in a personal way.

0:42:140:42:17

That's how I do it.

0:42:170:42:19

-Congratulations. It's really great to meet you.

-Thank you very much.

0:42:190:42:22

-Lovely story.

-Thank you very much.

0:42:220:42:25

'So, Kas and Naz showing that you can get

0:42:260:42:30

those extraordinarily high returns on your investment with property these days.

0:42:300:42:36

You don't need a degree in chemistry to do it.

0:42:360:42:40

What you do need is some fairly basic skills in human relations.

0:42:400:42:45

And dedication.

0:42:450:42:47

You can find out if this place is completed in just six days

0:42:470:42:52

later in the show.

0:42:520:42:54

So, have our fearless developers emerged victorious?

0:42:560:43:00

-Or have they floundered in the shallow end?

-It's time to find out.

0:43:000:43:04

Back now to Ilford, Essex.

0:43:050:43:06

Earlier in the programme, for £352,000,

0:43:060:43:10

Asif had bought a grand mid-terraced property on this road of imposing houses.

0:43:100:43:15

It had been converted into two flats.

0:43:150:43:18

The flats were in poor decorative order

0:43:180:43:20

and the back garden was a jungle.

0:43:200:43:22

Asif owns a mobile phone business with his brother.

0:43:220:43:26

This was his third property investment

0:43:260:43:28

and he planned to ring the changes with it.

0:43:280:43:31

It had planning permission to convert it back to a single house,

0:43:310:43:35

but Asif was definitely a man with a plan.

0:43:350:43:38

In fact, more than one.

0:43:380:43:41

What is the grand plan for this property?

0:43:410:43:43

We've got two plans. Plan A to make it four flats.

0:43:430:43:47

And Plan B to make it a big house with six bedrooms.

0:43:470:43:50

But we'll go first with Plan A, subject to planning permission.

0:43:500:43:55

Well, nearly nine months later,

0:43:550:43:58

we've returned to see what Asif has achieved.

0:43:580:44:00

There are new double-glazed windows throughout

0:44:030:44:06

and skylights in the re-tiled roof.

0:44:060:44:09

At the back, the property now has a garden.

0:44:090:44:11

And this impressive ground-floor extension runs the width of the house.

0:44:160:44:20

I say house because that's what it is.

0:44:200:44:23

Asif had his application for four flats turned down.

0:44:230:44:27

So he went with his Plan B,

0:44:270:44:30

to create one magnificent house.

0:44:300:44:33

With this very stylish kitchen that his brother helped design,

0:44:330:44:37

Asif's delighted with the look they've created.

0:44:370:44:40

Yeah, the kitchen is extremely nice.

0:44:400:44:43

You can see the flashback and the tiling.

0:44:430:44:45

The idea was to have a standard kitchen, not to spend a lot of money on it,

0:44:450:44:49

but all of a sudden we changed the plan that no, we should have a full kitchen.

0:44:490:44:53

We went to a DIY store. The combination of colours was already there.

0:44:530:44:57

What we did was a bit more mix and match with the colours combination with the purple.

0:44:570:45:03

And the cream, and the purple combination, it's really nice and to an extremely good standard.

0:45:030:45:07

At the other end of the extension is a new dining area

0:45:210:45:25

where the former bathroom was.

0:45:250:45:28

Plus the first of three bathrooms.

0:45:280:45:31

The former kitchen has been knocked through to the living room

0:45:320:45:35

and removing the two chimney breasts has made the room even bigger.

0:45:350:45:39

Across the hall, the bay-fronted reception room should be lovely,

0:45:410:45:45

once the carpet's laid.

0:45:450:45:47

Upstairs, there was a separate self-contained flat

0:45:470:45:50

which Asif has now transformed into four bedrooms.

0:45:500:45:54

And there's this high quality family bathroom.

0:46:020:46:06

Plus an en-suite in the front master bedroom.

0:46:090:46:12

And it doesn't end here, because Asif got planning permission

0:46:170:46:20

to add two further bedrooms up in the attic.

0:46:200:46:23

So the house now has six bedrooms, and this is the third family bathroom

0:46:250:46:30

beautifully finished and equipped. There's so much accommodation here.

0:46:300:46:35

It's a big house. A big family house.

0:46:350:46:37

I think whoever buys it will be very happy with it

0:46:370:46:41

because we did extremely good work on it,

0:46:410:46:43

especially the kitchen and the bathrooms and the tiling.

0:46:430:46:46

We made it to a very high standard.

0:46:460:46:49

Because the house is worth a lot of money,

0:46:490:46:51

for that reason I was thinking if I'm going to buy a house, spending that sort of money,

0:46:510:46:56

I really need extremely good work. And that's what we've done.

0:46:560:47:00

You can see where the money's been spent, all right.

0:47:020:47:04

I'm impressed with Asif's attention to detail

0:47:040:47:07

and the luxury feel he's created throughout.

0:47:070:47:10

But I'm keen to know how this has impacted on his budget

0:47:100:47:13

which he'd set at 90,000 for the four flat conversion,

0:47:130:47:18

and 65 to 70 for the single house.

0:47:180:47:21

We went over budget. The reason was we didn't keep it to the standard,

0:47:210:47:26

we went to the extremely high standard. That was the reason.

0:47:260:47:28

We went on the budget from 90 to £95,000 on it.

0:47:280:47:32

Added to the £352,000 Asif paid at auction,

0:47:320:47:37

that takes his total investment here to 447,000.

0:47:370:47:41

His plans haven't changed.

0:47:410:47:43

He's still looking to sell.

0:47:430:47:45

So time we got some opinions and those all-important valuations

0:47:460:47:50

from two local estate agents.

0:47:500:47:52

He's done very well. The finish is lovely.

0:47:540:47:56

The kitchen is going to be very nice. It's got the family room as well.

0:47:560:48:00

The kitchen, the dining room there. It'll be the heart of the home.

0:48:000:48:03

I particularly like the kitchen. They've thought outside the box.

0:48:030:48:07

The colours they've used, a lot of people wouldn't take a risk with that,

0:48:070:48:10

whereas they've taken that risk and it's worked for them.

0:48:100:48:14

Putting the sixth bedroom in the loft was a fantastic plan.

0:48:140:48:17

It's really opened it out, with a Juliet balcony.

0:48:170:48:19

I can imagine myself sitting there after work with a glass of wine.

0:48:190:48:23

That's a very nice touch.

0:48:230:48:25

You've got six bedrooms and four bathrooms.

0:48:250:48:27

It's a property that's going to suit a big family.

0:48:270:48:31

The estate agents think the house could rent for between £1,600 and £1,800 per calendar month.

0:48:310:48:38

But the plan was always to sell.

0:48:380:48:41

So will the re-sale valuations be more than the 447,000 he's invested here?

0:48:410:48:47

If I was looking to sell it, we're probably looking at figures around the 550,000 mark.

0:48:470:48:52

If I put it on the market today, I'd put it on at £550,000.

0:48:520:48:56

Those agreed valuations would generate a gross profit for Asif

0:48:560:49:01

of 103,000 before taxes and expenses.

0:49:010:49:05

550, yes. That's something we want to achieve on this property.

0:49:060:49:10

Or maybe a bit more, but we're happy with 550.

0:49:100:49:13

Asif runs a mobile phone business with his brother.

0:49:130:49:17

But after the success of this project,

0:49:170:49:19

could he see property developing as a new calling for him?

0:49:190:49:22

Hopefully, yes. I'm looking forward to, after the sale of this property,

0:49:240:49:28

then I'll make my mind up as to what to do in the future.

0:49:280:49:31

Could he be tempted to do an even bigger refurbishment next time?

0:49:310:49:35

I'd love to do a bigger one than this one

0:49:350:49:38

because all the small projects look small to me now because of doing this big one.

0:49:380:49:42

But I'm looking forward to it. If I get something bigger, why not? I'll do it.

0:49:420:49:47

Openshaw in Greater Manchester is a promising place for investors.

0:49:510:49:55

Parts of the area have seen some regeneration

0:49:550:49:57

and the arrival of some major retailers.

0:49:570:50:00

And with a healthy rental market and low property prices,

0:50:000:50:03

this is definitely hunting ground for some very impressive profits.

0:50:030:50:07

It was these elements that convinced chemistry PhD and property developer Kas

0:50:070:50:13

here on the left with his builder Naz,

0:50:130:50:15

to pay £27,000 for this first-floor flat.

0:50:150:50:19

The flat was in terrible condition.

0:50:220:50:25

It didn't even have a front door.

0:50:250:50:27

Kas is now a full-time buy-to-let investor

0:50:270:50:31

with a large portfolio,

0:50:310:50:32

and he was confident that the flat would give him the return he was after.

0:50:320:50:36

I'm looking for places which produce about a 20% yield.

0:50:380:50:41

Doctor of Chemistry Kas hasn't created this investment in the lab.

0:50:410:50:46

It's for real.

0:50:460:50:47

But I thought his builder Naz must have misread his lab report

0:50:480:50:52

of the time the refurbishment would take.

0:50:520:50:55

-A couple of weeks.

-Two weeks?!

0:50:560:50:58

-Well, nine days, then.

-Nine days?!

0:50:580:51:01

I wasn't suggesting you go less! I was suggesting you go more!

0:51:010:51:05

OK, listen to this.

0:51:050:51:07

Just 12 days later, it's time to find out whether less really is more.

0:51:070:51:12

Kas and Naz have certainly been busy.

0:51:120:51:16

The skip on the drive is full and the flat now has a front door.

0:51:160:51:20

But what's been achieved inside?

0:51:200:51:23

Well, a great deal. Everywhere has been painted.

0:51:260:51:29

It's been furnished.

0:51:290:51:32

And there's new carpet throughout.

0:51:340:51:36

The living room even has tables and chairs.

0:51:360:51:40

And pictures ready to go up.

0:51:410:51:43

I can't believe the kitchen.

0:51:440:51:46

All this in less than two weeks.

0:51:480:51:50

So where did chemist Kas start?

0:51:510:51:54

We've taken the whole old kitchen out

0:51:570:52:00

and completely gutted the place.

0:52:000:52:03

All the pipes and everything.

0:52:030:52:04

We've redecorated, wallpapered the place,

0:52:040:52:08

we've got new white goods and obviously a new cooker.

0:52:080:52:13

Then last of all, we put in a new lino.

0:52:130:52:17

And I'm really pleased with everything.

0:52:170:52:19

Well, it's just 12 days since we last met Kas and his builder, Naz.

0:52:240:52:29

They had all the tradesmen standing by to come in, one after another.

0:52:290:52:34

Did it all run to schedule?

0:52:340:52:36

Monday morning we started gutting everything.

0:52:360:52:38

We ordered a skip. We decided to keep the old heaters because they were in good condition.

0:52:380:52:44

We could make use of them.

0:52:440:52:46

And basically, that was all that was left in this building.

0:52:460:52:49

Whip it out and start again in super-fast time.

0:52:490:52:52

And like the living room, both bedrooms have been furnished.

0:52:540:52:57

But the bathroom had been totally trashed.

0:52:590:53:01

That proved a bigger challenge, as Kas explains.

0:53:010:53:05

Well, the bathroom was pretty similar to the kitchen.

0:53:050:53:09

Basically, we ripped everything out.

0:53:090:53:11

But there was one difference.

0:53:110:53:13

The walls were in a really, really bad state.

0:53:130:53:16

I tried to re-tile, but it would have meant replastering the whole bathroom.

0:53:160:53:21

So I got this PVC sheeting and it hides all the imperfections in the wall.

0:53:210:53:25

And it looks really nice.

0:53:250:53:27

Kas spent £150 on the PVC sheeting

0:53:270:53:31

and saved on the suite, as well.

0:53:310:53:33

I used to pay a lot more for bathroom suites,

0:53:330:53:36

around 250 to £300.

0:53:360:53:38

But I found a place that did it for £180, so I was really pleased with that.

0:53:380:53:42

The big question I bet everyone wants to know the answer to,

0:53:430:53:46

is just how long did this refurbishment take?

0:53:460:53:49

It took six days.

0:53:490:53:52

Started on Monday, finished on Saturday night.

0:53:520:53:54

I knew we could do it, and we did it!

0:53:540:53:56

He's a liar.

0:53:560:53:58

We finished on Sunday, last night!

0:53:580:54:00

-He's lying!

-Only the last day!

0:54:000:54:04

Guys, guys, let's not quibble over one day!

0:54:050:54:08

You're already in the Homes under the Hammer fastest teams' hall of fame!

0:54:080:54:12

And in that record time, they've installed an electric water heater in the loft.

0:54:170:54:22

That cost £350.

0:54:240:54:27

But how did the rest of the spend go?

0:54:270:54:29

Did they stick to their budget of four to five thousand?

0:54:290:54:33

It went pretty good. Basically we did it in £4,200.

0:54:330:54:37

That £4,200 spend on top of the 27,000 Kas paid at auction,

0:54:370:54:43

takes his total investment here to £31,200.

0:54:430:54:48

And he's already got a tenant lined up.

0:54:480:54:50

Time to see what a couple of local estate agents will make of this fast show.

0:54:510:54:56

Does it suit you, sir?

0:54:560:54:58

The property itself has been refurbished

0:54:580:55:01

to a standard that I would call "good enough to rent."

0:55:010:55:05

The finish in here is absolutely fine. Very neutral, inoffensive decor.

0:55:050:55:10

Tenants will be extremely happy with it, yes.

0:55:100:55:12

If he was looking to resell the property,

0:55:120:55:15

I would suggest a few more changes.

0:55:150:55:17

I would put double glazing in. I might have chosen a different kitchen.

0:55:170:55:22

So, will the estate agents value the flat at more than the £31,200 Kas has invested here?

0:55:220:55:28

Currently I would put a market value in the region of £44,950.

0:55:280:55:34

If he was to sell the property, and make the changes I've suggested,

0:55:340:55:38

I would value this property at £59,000.

0:55:380:55:41

As it stands, then, a gross profit before taxes and expenses

0:55:410:55:46

of £13,750.

0:55:460:55:49

And potentially, if those changes were done,

0:55:490:55:51

£27,800.

0:55:510:55:54

-Very good.

-As I say, it's not really relevant

0:55:540:55:57

cos we're not going to sell it, but it's good to know.

0:55:570:55:59

No, Kas bought this flat with the intention of generating a yield of 20%.

0:55:590:56:04

To achieve that with his investment of £31,200

0:56:040:56:08

he needs a rental valuation of £520 a month, or more.

0:56:080:56:13

This particular property I feel would rent in today's market

0:56:130:56:16

around £495 per calendar month.

0:56:160:56:19

The rental for this property, furnished, would be £500 per calendar month.

0:56:190:56:23

Well, a whisker under 20%.

0:56:230:56:25

But Kas is delighted.

0:56:250:56:27

500 a month is 6,000 a year. And we bought for 27.

0:56:270:56:33

After everything's done up, it's cost us about 31.

0:56:330:56:37

And that's basically exactly 20%.

0:56:370:56:40

-So we've done really well, I think.

-Mm, yes. Excellent.

-Well done!

0:56:400:56:44

Well done. Thank you!

0:56:440:56:46

And don't do it again!

0:56:460:56:48

Not enough for you? Well, there's plenty more where they came from!

0:56:510:56:54

So make sure you join us next time on Homes under the Hammer.

0:56:540:56:57

-We'll see you then.

-Goodbye!

-Goodbye!

0:56:570:56:59

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0:57:210:57:23

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