0:00:02 > 0:00:03Hello and welcome to the show.
0:00:03 > 0:00:05Buying property can have its highs and lows
0:00:05 > 0:00:10and it's not always as easy as it seems, especially if you get stuck in a dreaded chain.
0:00:10 > 0:00:12But you can eliminate that part altogether
0:00:12 > 0:00:15by purchasing at a property auction.
0:00:40 > 0:00:44Well, there are all sorts of properties coming up at the auctions these days.
0:00:44 > 0:00:48Their buyers have huge amounts of plans and budgets for them.
0:00:48 > 0:00:51So let's see what inspired the buyers on today's show.
0:00:52 > 0:00:55This Pembrokeshire cafe
0:00:55 > 0:00:58and first-floor flat could serve up a treat faster than you think.
0:00:58 > 0:01:01I don't think it would take much to get this thing back on track.
0:01:02 > 0:01:05I can't help banging on about this London house.
0:01:05 > 0:01:07Uh-oh! Yes!
0:01:07 > 0:01:11This needs to change back here because look - this is the kitchen!
0:01:12 > 0:01:14And in Stoke-on-Trent,
0:01:14 > 0:01:18the upstairs of this mid-terrace is a traditional two up two down.
0:01:19 > 0:01:22But in the kitchen, something you don't see that often.
0:01:24 > 0:01:27All of these properties went to auction and we'll find out
0:01:27 > 0:01:31who bought them and what they paid when they went under the hammer.
0:01:31 > 0:01:32You've bought it, sir. Well done.
0:01:36 > 0:01:38It's time to take the sea air
0:01:38 > 0:01:42and now I'm in the coastal town of Goodwick in Pembrokeshire.
0:01:44 > 0:01:47Goodwick is a former fishing port.
0:01:47 > 0:01:49Now very popular with tourists,
0:01:49 > 0:01:52especially due to its close proximity to nearby Fishguard.
0:01:52 > 0:01:56The property I'm here to see is a really interesting opportunity.
0:01:56 > 0:01:57It's this former restaurant.
0:01:57 > 0:02:01Had a guide price of 95,000 quid, let's take a look.
0:02:02 > 0:02:07The bright blue exterior is certainly eye-catching.
0:02:07 > 0:02:10# I'm going back some day
0:02:10 > 0:02:15# Come what may to blue bayou... #
0:02:15 > 0:02:18But it's obvious that, at least on the outside,
0:02:18 > 0:02:21a bit of maintenance work will be needed here.
0:02:21 > 0:02:24Ah! Nice bit of trellising!
0:02:24 > 0:02:25Great in the garden,
0:02:25 > 0:02:27not sure about the interior design of a restaurant,
0:02:27 > 0:02:29but anyway, what have we got?
0:02:29 > 0:02:32Basically you get a small little anteroom there and then
0:02:32 > 0:02:37this main area here which would have been where the main number of seats I imagine was.
0:02:37 > 0:02:41Apparently when it was open about 30 people would be able to eat in here.
0:02:41 > 0:02:46In terms of interior design, if you forgive the trellising,
0:02:46 > 0:02:49actually it's not bad! I like this stonewalling effect
0:02:49 > 0:02:52and it doesn't seem to be in too bad condition.
0:02:52 > 0:02:56Through this way, stairs up to the flat up there
0:02:56 > 0:02:58and then more stairs to the downstairs offering.
0:02:58 > 0:03:03Through to what would have been the main kitchen for the restaurant.
0:03:03 > 0:03:06Sad to see that a lot of the equipment has been taken out
0:03:06 > 0:03:08because it's not exactly cheap to replace,
0:03:08 > 0:03:11but if you're looking for this kind of opportunity
0:03:11 > 0:03:14I don't think it would take much to get this thing back on track.
0:03:14 > 0:03:18There's plenty of space in this three-storey property
0:03:18 > 0:03:21with a flat upstairs and a lower ground floor.
0:03:21 > 0:03:25So far there's not been anything to give me the blues.
0:03:25 > 0:03:28# Every once in a while I get the blues... #
0:03:30 > 0:03:33Downstairs, you've got the ladies and gents loo,
0:03:33 > 0:03:35which is already in place, which is good,
0:03:35 > 0:03:39and then this area here which I think would be either an extra seating area
0:03:39 > 0:03:42or possibly storage, and another storage room further that way.
0:03:42 > 0:03:44More of a concern to me right now
0:03:44 > 0:03:49is the fact the moment you walk in here...it smells of damp.
0:03:49 > 0:03:53I always say use all your senses when you visit a property.
0:03:53 > 0:03:55Your eyes, your ears and your nose.
0:03:55 > 0:03:58You can smell it straight away, and sure enough you don't have to go very far
0:03:58 > 0:04:03to see some major issues going on here. Oh, my word!
0:04:03 > 0:04:05That wall in the corner completely sopping wet,
0:04:05 > 0:04:10and if you look outside you can see we are actually below street level here.
0:04:10 > 0:04:11So this needs sorting out.
0:04:11 > 0:04:14It's going to need some specialist damp proofing on this,
0:04:14 > 0:04:16tanking, water, runaway systems or whatever.
0:04:16 > 0:04:19Get that sorted and then it's a really nice extra space,
0:04:19 > 0:04:22especially as you've got then access out to the back,
0:04:22 > 0:04:24which could be a little patio area.
0:04:24 > 0:04:27The blue theme continues out the back of this property
0:04:27 > 0:04:32that was guided at £95,000. There's an added bonus out here as well.
0:04:32 > 0:04:38One of the things which you'd really like for a property such as a restaurant is good parking.
0:04:38 > 0:04:41The bad news is there's none at the front.
0:04:41 > 0:04:45The good news is, however, that there is this free car park at the back,
0:04:45 > 0:04:49and even better there's its own little access to it here. Fantastic.
0:04:49 > 0:04:53As far as a good business goes, I'm seeing all the right ingredients.
0:04:53 > 0:04:58It's just that some of them are past their sell-by date.
0:04:58 > 0:05:00But this property is not just for business.
0:05:00 > 0:05:04It has residential accommodation on the first floor.
0:05:04 > 0:05:07So, upstairs and you've got a little flat.
0:05:07 > 0:05:09It's a really nice added bonus, this.
0:05:09 > 0:05:12One large sitting room area here, one bedroom there,
0:05:12 > 0:05:16and then a bathroom and loo there.
0:05:16 > 0:05:18One thing it hasn't got is a kitchen
0:05:18 > 0:05:22but I suppose the reasoning being is, if you've got the restaurant downstairs,
0:05:22 > 0:05:24you're never going to be short of food, are you?
0:05:24 > 0:05:28It would be ideal for someone who maybe wanted to run the restaurant and live here.
0:05:28 > 0:05:30I think the problems are if you want to rent it out separately
0:05:30 > 0:05:34because it doesn't have a separate access so that's not going to happen.
0:05:34 > 0:05:37So, what to do with this former restaurant?
0:05:37 > 0:05:41Open it up once more to serve food or apply for a change of use
0:05:41 > 0:05:44to turn it into a different business such as an office,
0:05:44 > 0:05:48or how about converting it completely to residential?
0:05:49 > 0:05:52What would a local estate agent recommend?
0:05:54 > 0:05:57My opinion, I would think the local authority would not encourage
0:05:57 > 0:05:59an application to return the property to full residential
0:05:59 > 0:06:02and they'd like to have a commercial and residential mix.
0:06:02 > 0:06:06The message is loud and clear - best to keep it as a business.
0:06:06 > 0:06:09So, once done up with a working restaurant,
0:06:09 > 0:06:11what could the property be worth?
0:06:13 > 0:06:15If the business is up and running as a successful restaurant,
0:06:15 > 0:06:18I would anticipate the market would react in the region
0:06:18 > 0:06:21of 150,000 for the building and the business.
0:06:21 > 0:06:25And if you did it up and let it as a business premises?
0:06:25 > 0:06:29I would imagine a property in its refurbished condition
0:06:29 > 0:06:33would fetch a rental for the commercial and residential together in the region of £8,000 a year.
0:06:33 > 0:06:38A canny buyer would also bear in mind that there's a proposed
0:06:38 > 0:06:42development for a marina in Fishguard harbour with residential development,
0:06:42 > 0:06:47a promenade and a visitors centre, so potentially plenty of customers.
0:06:50 > 0:06:55Well, this former restaurant provides a veritable feast of options.
0:06:55 > 0:06:57You could keep it as a restaurant or a cafe,
0:06:57 > 0:07:01you could open it up as maybe offices or estate agents,
0:07:01 > 0:07:04it wouldn't be hard to get planning permission change of use for that.
0:07:04 > 0:07:06It's all down to whoever bought it.
0:07:06 > 0:07:09Let's find out who that was when it went under the hammer.
0:07:09 > 0:07:11Onto lot number 18.
0:07:11 > 0:07:14It's a traditional three-storey restaurant premises.
0:07:14 > 0:07:16With the first floor you have the owner's accommodation.
0:07:16 > 0:07:19I've got a proxy bid on this one, ladies and gentlemen.
0:07:19 > 0:07:24I'm going to get things moving at 94,000. 94,000 my proxy is in.
0:07:24 > 0:07:30Five, 95, thank you. Proxy bid, 96. Seven, 97,000.
0:07:30 > 0:07:3497. My proxy bids 98. 98,000.
0:07:34 > 0:07:3898,000, I have. 99, thank you. The proxy is out.
0:07:38 > 0:07:43It's on you, madam, at 99,000. I can sell at 99. Any advance?
0:07:43 > 0:07:47Sir? Be quick. Madam, I'm going to sell it to you if this... No?
0:07:47 > 0:07:50OK, madam, it's yours. 99,000.
0:07:52 > 0:07:59And a sigh of relief from Jenny, who made the successful bid of £99,000.
0:07:59 > 0:08:02She was at the auction with her husband, Gwilym.
0:08:02 > 0:08:04They both work in Goodwick.
0:08:04 > 0:08:08Gwilym works at the local dock and Jenny is a cook and waitress
0:08:08 > 0:08:11so no prizes for guessing what she wanted with the restaurant.
0:08:11 > 0:08:13I met them back at the property to find out more.
0:08:13 > 0:08:16# I'll meet you at the blue cafe... #
0:08:18 > 0:08:22Jenny, Gwilym, great to meet you both. And you. Congratulations.
0:08:22 > 0:08:25- Thank you.- Tell me why you wanted to buy this place.
0:08:25 > 0:08:28Well, something I've been thinking about for quite a few years really.
0:08:28 > 0:08:30It's been on the market for about three years.
0:08:30 > 0:08:32It's been a bit of a dream and then it went to auction
0:08:32 > 0:08:36- and we thought we could go for it. - The dream being to do what?
0:08:36 > 0:08:38- To run a cafe.- Oh, great!
0:08:38 > 0:08:42I've worked in catering for quite a while and thought I could do it myself.
0:08:42 > 0:08:45And Gwilym, are you involved in the trade as well?
0:08:45 > 0:08:46No, not myself.
0:08:46 > 0:08:51I actually work down at the local harbour so I'll help out when I can
0:08:51 > 0:08:55- but obviously I won't be available all the time.- Right.
0:08:55 > 0:08:57So do you know about this place?
0:08:57 > 0:08:59It isn't here any more as a restaurant or cafe,
0:08:59 > 0:09:01does that give you any cause for concern or what?
0:09:01 > 0:09:03No, it was personal reasons that they closed it
0:09:03 > 0:09:07so I don't think there's anything to worry about. They had a good reputation.
0:09:07 > 0:09:08So it was popular while it was open?
0:09:08 > 0:09:10- It was, they were very successful with it, yeah.- Great.
0:09:10 > 0:09:16- And what are your plans for it then? - Sort of tea room, coffee shop, I think.
0:09:16 > 0:09:18Lots of nice cakes and nice coffee,
0:09:18 > 0:09:21and then a few sort of snacky meals as well.
0:09:21 > 0:09:25- Potentially we might think about opening in the evenings.- Oh, great.
0:09:25 > 0:09:27So it's something to work towards in the future.
0:09:27 > 0:09:31Jenny and Gwilym have had their eye on this particular place for years.
0:09:31 > 0:09:38It first came on the market in 2008, originally for £270,000,
0:09:38 > 0:09:40which was way outside their price range.
0:09:40 > 0:09:45Even when it didn't sell and the price was dropped to 160,000,
0:09:45 > 0:09:48it was still out of their reach, so when it finally came to auction
0:09:48 > 0:09:53guided at just 95,000, they thought it was now or never.
0:09:53 > 0:09:55What do you think the biggest challenges facing you,
0:09:55 > 0:09:58taking it on, you know, yourself are going to be?
0:09:58 > 0:10:01I think the biggest challenge around here is the winter months.
0:10:01 > 0:10:05It's very seasonal here so the summer, there's plenty of tourism
0:10:05 > 0:10:08so that should be all right, and then getting the regular people
0:10:08 > 0:10:12to come in in the winter, then by doing things to attract them in,
0:10:12 > 0:10:15- like a book club has been suggested quite a few times.- Oh, right!
0:10:15 > 0:10:18I might look at doing things like that for them.
0:10:18 > 0:10:21Have you thought of sort of the menus and things like that yet?
0:10:21 > 0:10:24Yes, well that's all we've been able to do so far is the menus.
0:10:24 > 0:10:28- Give me an idea of the sort of thing.- Mostly cakes to be honest.
0:10:28 > 0:10:32- We're trying to do a lot of cakes. - What sort of cakes?
0:10:32 > 0:10:36The one we had as our wedding cake, lemon and almond polenta cake.
0:10:36 > 0:10:39- Oh, nice.- Quite a popular one, and then all the old favourites,
0:10:39 > 0:10:42you know, chocolate cake and Victoria sponge.
0:10:42 > 0:10:45# If I knew you were coming I'd have baked a cake
0:10:45 > 0:10:48# Baked a cake, baked a cake
0:10:48 > 0:10:50# If I knew you were coming I'd have baked a cake
0:10:50 > 0:10:53# Howd-ya do, howd-ya do howd-ya do #
0:10:53 > 0:10:57So, lots of delicious-sounding cakes planned for this place, but
0:10:57 > 0:11:01before they can actually open it as a cafe there's a bit of work to do.
0:11:04 > 0:11:07It needs a tidy up throughout, I think.
0:11:07 > 0:11:11In here it's not too bad, a lick of paint
0:11:11 > 0:11:14and the counter needs to move around a bit I think.
0:11:14 > 0:11:19- Then the kitchen needs taking out and redoing.- New kitchen.
0:11:19 > 0:11:23Downstairs there's a bit of damp downstairs that needs looking at.
0:11:23 > 0:11:26Hopefully once we've taken care of that we can open the downstairs
0:11:26 > 0:11:29- room out into more seating, potentially.- Oh, great.
0:11:29 > 0:11:30What about the flat upstairs?
0:11:30 > 0:11:33It's a difficult one because there's no access to it
0:11:33 > 0:11:35and there's no kitchen up there
0:11:35 > 0:11:39so we might potentially rent it out to a member of staff.
0:11:39 > 0:11:42Otherwise it's just going to be an office and maybe a bit of a staffroom,
0:11:42 > 0:11:44just somewhere to go and have your lunch.
0:11:44 > 0:11:47So what sort of budget have you put aside to do the work?
0:11:47 > 0:11:52We've got about 13,000 to do the work, that's for the new kitchen
0:11:52 > 0:11:55and all the crockery and everything for the cafe.
0:11:55 > 0:11:57We've got lots of help, my dad is a builder
0:11:57 > 0:11:59so he's going to do what he can.
0:11:59 > 0:12:02I've got help from my side of the family as well.
0:12:02 > 0:12:06My father is handy and my younger brother works as a labourer.
0:12:06 > 0:12:09So what about timescale for getting it sorted?
0:12:09 > 0:12:11- We're aiming for about four weeks. - To do what?
0:12:11 > 0:12:14To do upstairs, definitely, and the kitchen,
0:12:14 > 0:12:19and then downstairs we'll work on slowly and get that open for the summer.
0:12:19 > 0:12:23- I just can't wait to get started now, get open!- Brilliant. Good luck!
0:12:23 > 0:12:27Thank you very much. I look forward to coming back for a cake!
0:12:27 > 0:12:30Well, these are tough times in the economy in general
0:12:30 > 0:12:34and that carries through to restaurants and cafes,
0:12:34 > 0:12:38but Gwilym and Jenny have certainly got the enthusiasm to make it a success,
0:12:38 > 0:12:43and Jenny's cakes sound delicious, but that four-week timescale?
0:12:43 > 0:12:46Will they get it open in time? You can find out later in the show.
0:12:54 > 0:12:56Walthamstow has made headlines recently,
0:12:56 > 0:12:59and for all the right reasons.
0:12:59 > 0:13:02It's been named the best place to rent a home in London.
0:13:02 > 0:13:05As rental costs in the capital rise to record levels,
0:13:05 > 0:13:08a new study has earmarked E17,
0:13:08 > 0:13:13claiming it offers the best mix of value and convenience.
0:13:13 > 0:13:18That kind of news, well, certainly brightens things up for this part of east London.
0:13:18 > 0:13:20How exciting!
0:13:20 > 0:13:24# I took the underground, I went eastbound
0:13:24 > 0:13:28# I went to Walthamstow... #
0:13:28 > 0:13:32The underground will get you to the West End in under 25 minutes,
0:13:32 > 0:13:35and Walthamstow village is charming.
0:13:35 > 0:13:38With its narrow pathways, historic buildings, boutique shops
0:13:38 > 0:13:43and restaurants, you can see why many are tempted to venture out to E17,
0:13:43 > 0:13:45and the numbers stack up as well.
0:13:47 > 0:13:52The average house in London is over the £400,000 mark
0:13:52 > 0:13:57so you can imagine my delight when I found out the guide for today's auction lot.
0:13:57 > 0:14:01It was set at just £185,000.
0:14:01 > 0:14:06Now, for the capital, that represents extremely good value.
0:14:06 > 0:14:10Outside looks a bit shabby, but for the price it's worth a look.
0:14:10 > 0:14:14My first thoughts are, mmm, it's a narrow hallway.
0:14:14 > 0:14:17I would like to reinstate this doorway here
0:14:17 > 0:14:20and let the light flood through.
0:14:20 > 0:14:22You can see this room has already been opened up
0:14:22 > 0:14:26but I'm wondering if it might be better to close it up again,
0:14:26 > 0:14:30to have a cosy quiet lounge space through here.
0:14:31 > 0:14:34And I can see through here. Uh-oh! Yes!
0:14:34 > 0:14:39This needs to change back here because look - this is the kitchen!
0:14:39 > 0:14:44No, thank you, we would like a nice family space with some doors leading out to the garden.
0:14:44 > 0:14:47And, as I suspected, there's a bathroom tacked on out the back.
0:14:47 > 0:14:51Disappointing, but it can only get better.
0:14:51 > 0:14:55Now let's see if we can squeeze in a bathroom somewhere upstairs.
0:14:57 > 0:15:01This is already beginning to seem like a major reconfiguration job.
0:15:01 > 0:15:04Moving the bathroom would be my priority.
0:15:04 > 0:15:07Those polystyrene tiles definitely need to come off
0:15:07 > 0:15:11and the kitchen could be extended at the back using that side return.
0:15:11 > 0:15:16# I've got my spine, I've got my orange crush... #
0:15:16 > 0:15:19That's probably only worth doing if you were going to live here.
0:15:19 > 0:15:22If this is a buy-to-let purchase, then keep your money in your purse.
0:15:22 > 0:15:25At the very least, the kitchen does need a refit.
0:15:25 > 0:15:29Whatever the future is, it's not this colour!
0:15:32 > 0:15:36Upstairs we've got a good-sized bedroom at the back of the property.
0:15:36 > 0:15:39Along this corridor we've got the master bedroom to the front,
0:15:39 > 0:15:42loads of light coming in, two big windows,
0:15:42 > 0:15:45but in here is where I've seen the opportunity and this is where
0:15:45 > 0:15:51I get really excited because I really think this is doable.
0:15:51 > 0:15:53Obviously you'd have to speak to your builder and plumber
0:15:53 > 0:15:58to see if this could work because I know the soil stack is somewhere back there,
0:15:58 > 0:16:00but how about putting the bathroom here?
0:16:01 > 0:16:04In between this wall and a new wall you're going to put up,
0:16:04 > 0:16:09you could have the bath along there, with the shower coming out, toilet, sink.
0:16:09 > 0:16:13Then you still have a single bedroom with a window
0:16:13 > 0:16:15letting in lots of light.
0:16:15 > 0:16:19I think whoever takes this on should seriously think about that.
0:16:19 > 0:16:22# Think about it, baby
0:16:22 > 0:16:24# Think about it... #
0:16:24 > 0:16:28So, a decent reconfiguration is possible in this house.
0:16:28 > 0:16:31But there's a lot of work to do.
0:16:31 > 0:16:35There's no central heating and the property is very dated.
0:16:35 > 0:16:38There are yet more of those polystyrene tiles.
0:16:38 > 0:16:40They've just got to go.
0:16:40 > 0:16:42And who knows what will be lurking behind them?
0:16:44 > 0:16:45But from outside,
0:16:45 > 0:16:50you can see that there is potential to extend up as well as out.
0:16:50 > 0:16:52And the garden is a real bonus.
0:16:52 > 0:16:55For a guide price of around 185,000,
0:16:55 > 0:16:58there is great potential here.
0:16:58 > 0:17:02We invited a local estate agent to come and have a look around.
0:17:02 > 0:17:05It needs a full refurbishment but would the estate agent also
0:17:05 > 0:17:09recommend extending the property and would that be money well spent?
0:17:09 > 0:17:12There is scope to extend, but really it all comes down to what the
0:17:12 > 0:17:14owner wants to do with the property.
0:17:14 > 0:17:17If they want to rent it or sell on, I would advise against it.
0:17:17 > 0:17:21If they are going to live here, and they need that extra space, then, yes, it is a great investment.
0:17:21 > 0:17:24If the house was let in its current configuration,
0:17:24 > 0:17:27with three bedrooms and a bathroom downstairs,
0:17:27 > 0:17:31how much rental income could it be achieved after a full refurbishment?
0:17:31 > 0:17:34Three bedrooms with downstairs bathroom,
0:17:34 > 0:17:37probably around £1,350, maybe £1,400 per calendar month.
0:17:37 > 0:17:41And a resale valuation after it is done up?
0:17:41 > 0:17:45When renovated, we could sell this on for about 250,000.
0:17:45 > 0:17:48I think you know how I feel by now. Work within the footprint,
0:17:48 > 0:17:54move that bathroom upstairs and rent it out. That is what I would do.
0:17:54 > 0:17:59And with a potential 7-8% yield, I think it is no brainer.
0:17:59 > 0:18:03Let's see who wanted this one when it went under the hammer.
0:18:03 > 0:18:07Move onto lot 18, three-bed, mid-terraced house, Walthamstow.
0:18:07 > 0:18:10It's worth 200. If not, you tell me.
0:18:10 > 0:18:13175.
0:18:13 > 0:18:16We're not going to go below 175. 175.
0:18:16 > 0:18:18176.
0:18:18 > 0:18:22176. 177. 178.
0:18:22 > 0:18:27179. 180. 181.
0:18:27 > 0:18:29182.
0:18:29 > 0:18:32183. 184.
0:18:34 > 0:18:37185. 186.
0:18:39 > 0:18:41187. 188.
0:18:43 > 0:18:46189. 190.
0:18:47 > 0:18:50190. 191. 192.
0:18:52 > 0:18:56Is that five? 195? Not taking... 195.
0:18:56 > 0:18:59196. 197.
0:19:02 > 0:19:04198. 199.
0:19:06 > 0:19:09198, down here. Anyone else?
0:19:09 > 0:19:12At £198,000.
0:19:12 > 0:19:17First time, second time. Third and last time. If you are all done.
0:19:17 > 0:19:19Sold, 198.
0:19:20 > 0:19:22Hidden away from our view
0:19:22 > 0:19:27but making the successful bid of 198,000 was Ghulam.
0:19:27 > 0:19:31He works for the local council, so knows the area very well.
0:19:31 > 0:19:34He's also been developing property on the side for the last
0:19:34 > 0:19:37two years so he's no novice.
0:19:37 > 0:19:40Still, we all need support when taking on a large project
0:19:40 > 0:19:44and luckily his daughter Hina is on hand to help out here.
0:19:44 > 0:19:49I met them both at the house to find out what they had planned.
0:19:49 > 0:19:52- Congratulations. - Thank you very much.
0:19:52 > 0:19:56I want to know the story and why you wanted to buy this property.
0:19:56 > 0:19:58There are a number of reasons.
0:19:58 > 0:20:02One is to build a pension portfolio, it is
0:20:02 > 0:20:04the primary reason to invest in the property.
0:20:04 > 0:20:08There is a lovely park down the road for the children to play.
0:20:08 > 0:20:10It is a sought after area for the families to rent.
0:20:10 > 0:20:15I have a local connection because I work around the corner with the local authority.
0:20:15 > 0:20:19And my family member Hina has property around the corner.
0:20:19 > 0:20:22- You know this area well. - Yeah, a few months ago,
0:20:22 > 0:20:26we bought another property three roads down and we refurbished that
0:20:26 > 0:20:30and we have rented that out to a very good family. We are familiar with the area.
0:20:30 > 0:20:32They bought the house as a cash purchase
0:20:32 > 0:20:36and were delighted with the £198,000 they paid.
0:20:36 > 0:20:39They plan to refurbish and then let it out,
0:20:39 > 0:20:43so how involved will Hina and Ghulam be in the project?
0:20:43 > 0:20:47I work full-time and I have two young kids, so I am definitely in an
0:20:47 > 0:20:51advisory capacity, so I will do the budget management behind the scenes.
0:20:51 > 0:20:55I get engaged with the builders because it's the same builders I used for some of my own projects.
0:20:55 > 0:20:59Ghulam, are you going to be overseeing this project? How often will you be here?
0:20:59 > 0:21:03Since I work round the corner, in my full-time job, I will be coming
0:21:03 > 0:21:07here every lunchtime and intend to spend the day.
0:21:07 > 0:21:11I've got visions of you trotting round with your packed lunch.
0:21:11 > 0:21:15- Is that right?- That is correct. Absolutely. I'll be having my lunch here at the property.
0:21:15 > 0:21:18# And at a quarter to three, your friends say oh, my, me,
0:21:18 > 0:21:21# Whatever you just had for lunch agrees with you
0:21:21 > 0:21:25# Lunch hour, lunch hour, how do you find time to eat? #
0:21:25 > 0:21:28No chance of an extended lunch hour for the builders then.
0:21:28 > 0:21:31So what have they got planned here?
0:21:31 > 0:21:35We intend to build an extension with a view to incorporate
0:21:35 > 0:21:39a brand-new kitchen on the back side of the extension will be
0:21:39 > 0:21:41a brand-new bathroom and toilet.
0:21:41 > 0:21:47We also intend to increase the facilities as well as the value upstairs by creating a WC.
0:21:47 > 0:21:51So your plan is to have an extension out the back to put the bathroom in?
0:21:51 > 0:21:54- Sure, definitely.- You're going to have a lot of ground floor space
0:21:54 > 0:21:58but my big problem is, you don't have a bathroom upstairs.
0:21:58 > 0:22:01But you do have three nice bedrooms up there.
0:22:01 > 0:22:04Why have you thought about putting a toilet upstairs?
0:22:04 > 0:22:06As a three-bedroom house, it will it will go to a family,
0:22:06 > 0:22:09so as a mother, you know you don't want to have to come
0:22:09 > 0:22:12downstairs in the middle of the night to take the children to the toilet.
0:22:12 > 0:22:15What room were you thinking of putting the toilet in?
0:22:15 > 0:22:20We are thinking about the back third bedroom for a small WC.
0:22:20 > 0:22:23Now the problem with that is it's going to then leave
0:22:23 > 0:22:25the rest of the room in a rather awkward shape.
0:22:25 > 0:22:29Have you thought about having a bathroom in between the big
0:22:29 > 0:22:32bedroom at the front and the second bedroom?
0:22:32 > 0:22:36I think it's a great idea. I think it just depends.
0:22:36 > 0:22:40To be honest, I never thought about having it in the second bedroom.
0:22:40 > 0:22:43But it seems like an excellent idea.
0:22:43 > 0:22:44# Think about it.
0:22:44 > 0:22:46# Think about it, baby... #
0:22:46 > 0:22:49They wouldn't then need to build an extension
0:22:49 > 0:22:53because the kitchen could go where the bathroom and loo are currently.
0:22:53 > 0:22:58This father-daughter team have plenty of expertise when it comes to a big undertaking like this.
0:22:58 > 0:23:01But how will Hina keep tabs on the budget?
0:23:01 > 0:23:06I have definitely got spreadsheets and there is a very large spreadsheet that goes behind every project we do.
0:23:06 > 0:23:11- Really?- Yes. I get dubbed the Spreadsheet Queen by my husband.
0:23:11 > 0:23:14But we do, we like to know our numbers
0:23:14 > 0:23:19and it's a discipline I learned from my father a very long time ago. Numbers, numbers and numbers.
0:23:19 > 0:23:22# You know that the numbers don't lie
0:23:22 > 0:23:25# Oh, no, the numbers don't lie... #
0:23:25 > 0:23:29They've budgeted 27 to 28,000 for their planned refurbishment
0:23:29 > 0:23:34with a 10% contingency, but if they do decide to take my advice and move
0:23:34 > 0:23:38the bathroom upstairs, have they any idea of the savings that could make?
0:23:38 > 0:23:41Because we use the same builders and we have the spreadsheets,
0:23:41 > 0:23:46we do have it costed down to a sort of margin of 10% either way.
0:23:46 > 0:23:50Not doing the extension will save on the total build costs.
0:23:50 > 0:23:53I think we need to look at your suggestion, rip everything out,
0:23:53 > 0:23:56look at the floor space we have left with and see
0:23:56 > 0:23:59whether in the first instance that is more viable
0:23:59 > 0:24:03and if the extension is still needed, then we will consider that.
0:24:03 > 0:24:07Congratulations on this buy. I'm really excited to see what you do.
0:24:07 > 0:24:10- Well done.- Thank you very much. - Lovely to meet you.- Likewise.
0:24:10 > 0:24:14Ghulam and Hina need to forget their spreadsheets for five minutes
0:24:14 > 0:24:19and concentrate on more important issues, the layout.
0:24:19 > 0:24:24Will they go with my idea or spend unnecessary money on an extension?
0:24:24 > 0:24:28You can join me later in the programme and find out what they do.
0:24:28 > 0:24:31'Coming up, in Stoke-on-Trent,
0:24:31 > 0:24:34'this mid-terrace property proves hot and steamy.'
0:24:34 > 0:24:37Can't stand the heat, you can always have a shower.
0:24:38 > 0:24:43We return to London to see the results of Ghulam's working lunches.
0:24:43 > 0:24:46Because dad's been here every day, project managing it,
0:24:46 > 0:24:50I do not have to have so much of an input.
0:24:50 > 0:24:52But first, back in Pembrokeshire, are Jenny
0:24:52 > 0:24:55and Gwilym pleased with what they have served up?
0:24:55 > 0:24:58We think we've made a nice atmosphere. People react well to it.
0:25:01 > 0:25:05Back now to the picturesque holiday coastal town of Goodwick
0:25:05 > 0:25:06in Pembrokeshire.
0:25:06 > 0:25:09It's a popular holiday resort with lots of summer visitors
0:25:09 > 0:25:13all looking for a nice cuppa and something to eat.
0:25:13 > 0:25:16# I'll meet you at the blue cafe... #
0:25:16 > 0:25:19So when this cafe, with a first-floor flat
0:25:19 > 0:25:22and lower ground floor went to auction, local couple Jenny
0:25:22 > 0:25:26and Gwilym decided to pay £99,000 for the premises,
0:25:26 > 0:25:29hoping to cater for tourists and locals alike.
0:25:29 > 0:25:32It's something I've been thinking about for quite a few years really.
0:25:32 > 0:25:35It's been on the market for about three years.
0:25:35 > 0:25:39It's been a bit of a dream and then it went to auction and we thought we could go for it.
0:25:39 > 0:25:43- The dream being to do what? - To run a cafe.- Great.
0:25:43 > 0:25:47Yes, I've worked in catering for quite a while and thought I can do it myself.
0:25:47 > 0:25:51- Gwilym, are you involved in the trade as well?- No, not myself.
0:25:51 > 0:25:56I actually work done at the local harbour. I will help out when I can.
0:25:56 > 0:25:59So, what would this couple cook up?
0:25:59 > 0:26:02Well, three months later, back in Goodwick,
0:26:02 > 0:26:06Jenny and Gwilym have served up quite a change to the cafe.
0:26:06 > 0:26:10How appropriate to paint the front and back cream.
0:26:12 > 0:26:16The inside has lost the blues as well.
0:26:16 > 0:26:21It looks as though cake baker Jenny has risen to the occasion.
0:26:21 > 0:26:24The cafe looks so much more inviting.
0:26:24 > 0:26:27All that dark wood wasn't everyone's cup of tea.
0:26:27 > 0:26:31I'm delighted that's gone. So, where did they start?
0:26:31 > 0:26:34We've done quite a lot in this room really.
0:26:34 > 0:26:38The main thing I think was all of the dark trellis that was around here
0:26:38 > 0:26:42and the wood panel behind really made it quite dark in here.
0:26:42 > 0:26:44We've moved the counter around.
0:26:44 > 0:26:47It was facing the other way, which didn't seem practical to us at all.
0:26:47 > 0:26:50The counter through in the other room,
0:26:50 > 0:26:54we have knocked down the stone bar as well because that was making the room quite dark.
0:26:54 > 0:26:58And we've painted the beans because they were painted a dark brown,
0:26:58 > 0:27:02which just made it really imposing, not very nice.
0:27:02 > 0:27:04We think we've made a nice atmosphere.
0:27:04 > 0:27:08People seem to react well to it and think that it is a nice place to sit and relax.
0:27:08 > 0:27:12They successfully opened just six weeks after our first visit.
0:27:12 > 0:27:16And apart from teas and coffees, serve light lunches
0:27:16 > 0:27:18and snacks as well.
0:27:18 > 0:27:22# I really likes bread and butter I really likes toast and jam... #
0:27:22 > 0:27:25The lower ground floor now provides added dining space
0:27:25 > 0:27:28and an area for private functions.
0:27:28 > 0:27:31But it took a lot of hard work, as Gwilym explains.
0:27:31 > 0:27:36The room when we started was very damp, very dark.
0:27:36 > 0:27:39The carpet was in an atrocious state.
0:27:39 > 0:27:43We have had to rip out the carpet, lay a new tile floor.
0:27:43 > 0:27:46We have painted the walls a brighter colour.
0:27:46 > 0:27:50We have put a bright pink in the window so hopefully people
0:27:50 > 0:27:55will want to come down and relax down here and enjoy the room.
0:27:55 > 0:27:58There were toilets and a store already downstairs,
0:27:58 > 0:28:00so they've been freshened up.
0:28:00 > 0:28:05Back upstairs, at the back of the ground floor, the kitchen has
0:28:05 > 0:28:09been kitted out with stainless steel prepping areas and equipment.
0:28:12 > 0:28:13They paid £99,000 for the property,
0:28:13 > 0:28:16which included a flat on the first floor.
0:28:16 > 0:28:19But the options up there are limited.
0:28:19 > 0:28:23We haven't touched the flat upstairs. We're not going to rent it out.
0:28:23 > 0:28:26There is no kitchen up there and there is no access.
0:28:26 > 0:28:29We're just using it mainly as a staffroom and a bit of storage.
0:28:29 > 0:28:31Who's done all the hard graft here?
0:28:31 > 0:28:35Me and Gwil were here every day for about six weeks
0:28:35 > 0:28:38and my dad was here pretty much every day with us as well,
0:28:38 > 0:28:42helping us a lot. He is a builder by trade. He's been really helpful.
0:28:42 > 0:28:46Jenny does all the cooking as well as working in the cafe.
0:28:46 > 0:28:48They have employed a full-time waitress,
0:28:48 > 0:28:52plus part-time help for the busy summer period.
0:28:52 > 0:28:54Gwilym works shifts at the docks,
0:28:54 > 0:28:59but spends as much of his spare time as he can helping Jenny in the cafe.
0:28:59 > 0:29:02So has she sorted him out a uniform?
0:29:02 > 0:29:04Yes.
0:29:04 > 0:29:08Um... It's the same as the rest of the girls who work here.
0:29:08 > 0:29:11Black trousers, black T-shirt
0:29:11 > 0:29:14and then I have got a lovely pink apron to wear.
0:29:14 > 0:29:18So... It's not so bad.
0:29:18 > 0:29:20# It's crazy, I know
0:29:20 > 0:29:22# It's just one of those things
0:29:22 > 0:29:26# I wanna be tied to your apron strings... #
0:29:27 > 0:29:32But with all the wet weather, have they had many day-trippers coming in?
0:29:32 > 0:29:34We've seen a few holidaymakers,
0:29:34 > 0:29:37but mostly it's local people coming in and having a look at
0:29:37 > 0:29:40what we've done and supporting us, which is really great.
0:29:40 > 0:29:44# I like a nice cup of tea in the morning
0:29:44 > 0:29:48# For to start the day, you will see... #
0:29:48 > 0:29:52The exterior has been smartened up but Jenny and Gwilym
0:29:52 > 0:29:55haven't had time to get this area ready for customers yet,
0:29:55 > 0:29:57although it is looking much better.
0:29:57 > 0:30:00All the blue paint that was on the outside made it look very cold
0:30:00 > 0:30:01and very dark.
0:30:01 > 0:30:07When we came to take away the menu box to give it a bit of a refit, half the paint came with it.
0:30:08 > 0:30:11The couple had set a budget of £13,000
0:30:11 > 0:30:15but how much has it cost to plate up this dish of the day?
0:30:15 > 0:30:18The budget, we did go slightly over budget,
0:30:18 > 0:30:20about 2,000 over budget,
0:30:20 > 0:30:22which brought us up to about 15 grand.
0:30:22 > 0:30:25That increasing the budget included the purchase of fixtures,
0:30:25 > 0:30:28fittings, crockery and the like.
0:30:28 > 0:30:31With the £99,000 they paid for it at auction,
0:30:31 > 0:30:35that takes their total investment to £114,000.
0:30:35 > 0:30:39We invited two local property experts along to see
0:30:39 > 0:30:43if they could put some icing on the cake with their opinions.
0:30:43 > 0:30:46People want to see something that is bright,
0:30:46 > 0:30:50clean and enticing from the pavement.
0:30:50 > 0:30:53And I think that it ticks all those boxes.
0:30:53 > 0:30:56They have made the kerb appeal quite interesting
0:30:56 > 0:30:59to catch the trade that's coming through from the pedestrian area.
0:30:59 > 0:31:03When you enter, it's very homely and inviting to come in and sit down.
0:31:03 > 0:31:07They need to pick up on the seasonal trade when it's there because that's
0:31:07 > 0:31:11the cream, the bread-and-butter will be the 12 months of the year trade from the locals.
0:31:11 > 0:31:14The business premises would have to be let as a whole
0:31:14 > 0:31:18because you're unable to let the flat separate to the commercial
0:31:18 > 0:31:20accommodation, as it's not self-contained.
0:31:20 > 0:31:22I feel that in the current market,
0:31:22 > 0:31:26it would be fetching in the region of around £12-£13,000 per annum.
0:31:26 > 0:31:31The rental that they should be looking for is about £8,000 per year.
0:31:31 > 0:31:35Those commercial rents will generate a yield of between seven and 11%.
0:31:35 > 0:31:39Could Jenny be tempted to let the cafe?
0:31:39 > 0:31:41Maybe. Ask me again in a couple of months.
0:31:41 > 0:31:44We'll see how stressed I am then.
0:31:44 > 0:31:48What about an estimated sale valuation for the cafe
0:31:48 > 0:31:49with flat above?
0:31:49 > 0:31:52Commercial premises are always valued in relation
0:31:52 > 0:31:57to their annual turnover, which in this case has yet to be established.
0:31:57 > 0:32:01I would value the property at between 110 and £115,000.
0:32:01 > 0:32:04The business in the current market would
0:32:04 > 0:32:09sell in the region of £175,000-£185,000.
0:32:09 > 0:32:11A bit of a margin between the two.
0:32:11 > 0:32:15But it is still more than we paid for it. So yes, quite happy with that.
0:32:15 > 0:32:18So for Jenny and Gwilym after their first year they'll be able
0:32:18 > 0:32:21to get a more accurate idea of the value.
0:32:21 > 0:32:24For the moment, there is some guesswork involved, not least
0:32:24 > 0:32:27because selling businesses in the current climate can be tricky.
0:32:27 > 0:32:30But how does Jenny feel about the whole venture now?
0:32:30 > 0:32:33Is it the icing on the cake she hoped it would be?
0:32:33 > 0:32:36It's a lot of hard work but I think it is worth doing in the end
0:32:36 > 0:32:40because it's a satisfying feeling, especially knowing you've
0:32:40 > 0:32:43renovated it all yourself and it's all entirely yours.
0:32:43 > 0:32:45It's a good feeling.
0:32:52 > 0:32:54I'm in Burslem,
0:32:54 > 0:32:59one of the six towns that together form the city of Stoke-on-Trent.
0:32:59 > 0:33:05Oatcakes are a local speciality and it is also the home of Port Vale FC.
0:33:05 > 0:33:09The question is, will the property I'm here to see be a top scorer or
0:33:09 > 0:33:12will it need extra time to get fit?
0:33:12 > 0:33:17Just a mile from all that Burslem has to offer is the property
0:33:17 > 0:33:19I am here to see.
0:33:19 > 0:33:24And this is it. And a terrific guide price of £25,000.
0:33:24 > 0:33:27Good looks aplenty. The house isn't too bad either.
0:33:29 > 0:33:32So what's it like inside?
0:33:32 > 0:33:34OK, very standard layout.
0:33:34 > 0:33:38Straight through the front door and you've got your living room.
0:33:38 > 0:33:44Straight through the front door and the first thing I noticed, down here, this is not good.
0:33:44 > 0:33:48Wow! Look at that. A very bad case of damp
0:33:48 > 0:33:49on that front wall.
0:33:49 > 0:33:54That's probably rising damp or it could be leakage around the window.
0:33:54 > 0:33:57Oh, my goodness. It's there as well. That's not good.
0:33:57 > 0:34:00All the walls in here seem to be showing some serious signs of damp.
0:34:00 > 0:34:03That's going to basically have to be hacked off to a metre,
0:34:03 > 0:34:06replaced with damp repellent plaster,
0:34:06 > 0:34:10but first of all, you've got to find out exactly what is causing it.
0:34:10 > 0:34:13Anyway, through there, into the rear sitting room area. A fireplace.
0:34:13 > 0:34:17The one in there is quite pleasant. This is very typical of that era.
0:34:17 > 0:34:20If you like it, great, if you don't, rip it out.
0:34:20 > 0:34:22And then through to the kitchen.
0:34:22 > 0:34:26Very classic layout. It's in need of updating, definitely.
0:34:26 > 0:34:29And then through to the only loo in the property.
0:34:29 > 0:34:33Not ideal, but around these parts, it's kind of expected.
0:34:33 > 0:34:37No need necessarily to go to the trouble of moving it upstairs.
0:34:37 > 0:34:41But in the kitchen, something you don't see that often.
0:34:41 > 0:34:43If you can't stand the heat, well in this case,
0:34:43 > 0:34:47if you can't stand the heat, you could always have a shower.
0:34:50 > 0:34:54Now, a shower in the kitchen is never going to win the design
0:34:54 > 0:34:58layout award of the year, so the kitchen will need a complete refit.
0:35:00 > 0:35:03But the issues with this place have only just begun because with
0:35:03 > 0:35:07this store room and loo, I'm afraid, that's it, the lot -
0:35:07 > 0:35:10the total bathroom facilities for the whole house.
0:35:12 > 0:35:15# What do you do in the bath? #
0:35:15 > 0:35:17Well, nothing in this property.
0:35:17 > 0:35:21The guide price of £25,000 may have seduced you,
0:35:21 > 0:35:24as might have the good looks outside.
0:35:24 > 0:35:27But there are some serious challenges with this place,
0:35:27 > 0:35:30like where to wash or go to the loo.
0:35:30 > 0:35:34Creating a bathroom upstairs isn't practical as space is
0:35:34 > 0:35:36extremely limited.
0:35:36 > 0:35:38There are just two bedrooms.
0:35:38 > 0:35:40The good news is that they've both retained
0:35:40 > 0:35:42most of their original features.
0:35:42 > 0:35:47They are lovely rooms to restore, so that's got me really excited
0:35:47 > 0:35:51and is the first bit of welcome news so far.
0:35:51 > 0:35:55But what's the solution for the very restricted bathroom facilities?
0:35:55 > 0:35:57Time to investigate out the back.
0:35:57 > 0:36:00At the rear of the property, you can see the extensions that have
0:36:00 > 0:36:04been built over time and also the potential to possibly extend
0:36:04 > 0:36:08even further because at least if that bathroom was a bit bigger,
0:36:08 > 0:36:11you wouldn't particularly mind that it was downstairs.
0:36:11 > 0:36:14Yes, it seems that this is the obvious place to have a
0:36:14 > 0:36:16proper bathroom.
0:36:16 > 0:36:18The question is, is it a bathroom made from the loo
0:36:18 > 0:36:21and the coal store or a new extension?
0:36:21 > 0:36:24This could be starting to get very costly,
0:36:24 > 0:36:28even with that guide price of £25,000.
0:36:28 > 0:36:32We asked a local property expert for his opinion.
0:36:32 > 0:36:35For modernisation, basically, it needs to be done,
0:36:35 > 0:36:39obviously the kitchen, bathroom windows, heating.
0:36:39 > 0:36:42There are signs of damp with the property.
0:36:42 > 0:36:46And the major real expense is going to be the extension to the rear
0:36:46 > 0:36:49to provide a bathroom.
0:36:49 > 0:36:53# Tap turns on the water, see the waters flow... #
0:36:53 > 0:36:57So it looks like a full-on refurbishment and while we're
0:36:57 > 0:37:02piling on the bad news, there's also the mining legacy to consider too.
0:37:02 > 0:37:05Lucy and I always recommend you tread very carefully where
0:37:05 > 0:37:06there may be mines.
0:37:06 > 0:37:09A report says the property does have a mine
0:37:09 > 0:37:13entry recorded within 20 metres of its boundary.
0:37:13 > 0:37:16So the estate agent recommends an interpretive report done,
0:37:16 > 0:37:20which is more detailed. But assuming the report's positive
0:37:20 > 0:37:22and the property is fully refurbished with a new
0:37:22 > 0:37:26bathroom installed, how much rental income could the house generate?
0:37:26 > 0:37:29After renovation, you would be able to let this
0:37:29 > 0:37:34property in the region of £400-£450 per calendar month.
0:37:34 > 0:37:39At the guide price of £25,000, that's a yield of over 19%.
0:37:39 > 0:37:41Even allowing for the cost of refurbishment,
0:37:41 > 0:37:46there's a very good rental return here. What about resale?
0:37:46 > 0:37:51After renovation, I would suggest a figure in the region of £65,000.
0:37:51 > 0:37:54Well, the house does require a bit of sorting out,
0:37:54 > 0:37:57especially fixing the bathroom.
0:37:57 > 0:38:01It's in an ex-mining area, so you definitely want a mining report
0:38:01 > 0:38:04but if it's clear of mine shafts and you've got the cash to put in,
0:38:04 > 0:38:06it could be a great little earner.
0:38:06 > 0:38:10A potential double digit yield. You can't argue with that.
0:38:10 > 0:38:14Let's see who fancied it when it went under the hammer.
0:38:14 > 0:38:17Lot 52. Mid-terrace, needs fully modernising.
0:38:17 > 0:38:20Accommodation all as subscribed.
0:38:20 > 0:38:23Lot 52. 20,000 to start me.
0:38:23 > 0:38:2720 bid, standing left. £20,000. At £20,000.
0:38:27 > 0:38:3021, can I see? At 20,000. 21.
0:38:32 > 0:38:3922? 22. 23. 24. 25. 26.
0:38:39 > 0:38:45New bid at 27. Back in, £28,000. 29.
0:38:45 > 0:38:4930? 30.
0:38:49 > 0:38:52Do you want to go 500, sir? 30,500.
0:38:54 > 0:38:56New bid at 31.
0:38:56 > 0:38:59Shaking the head. 31,000. Bid's here.
0:38:59 > 0:39:04£31,000. Another 500 anywhere else?
0:39:04 > 0:39:06New bid at 31,500.
0:39:06 > 0:39:0832?
0:39:08 > 0:39:12No. 31,500, gentleman in blue.
0:39:12 > 0:39:15Got him? 31,500. All done now.
0:39:15 > 0:39:18It's your bid, sir. 32.
0:39:18 > 0:39:2132,500, it will cost you now. 32,500.
0:39:21 > 0:39:2533? No. 32,500. Standing right.
0:39:25 > 0:39:2732,500. First time.
0:39:27 > 0:39:3132,500, second time.
0:39:31 > 0:39:35Third and final time. Your bid, sir. 32,500.
0:39:35 > 0:39:38You have bought it, sir. Well done.
0:39:38 > 0:39:42That happy bidder who paid £32,500 was a fellow Martin.
0:39:45 > 0:39:49Until recently, he ran a company that took control of repairing
0:39:49 > 0:39:53properties after they had suffered major fires and floods.
0:39:55 > 0:40:00# We were holding back the flood, they said we'd never dance again... #
0:40:02 > 0:40:06He's dabbled in property since the age of 19 and recently
0:40:06 > 0:40:09decided to make developing a more full-time enterprise.
0:40:09 > 0:40:12I went back to the house to meet him
0:40:12 > 0:40:15and find out his plans for the place.
0:40:15 > 0:40:19- Martin, great to meet you.- Nice to meet you.- Congratulations.- Thank you.
0:40:19 > 0:40:22You've got yourself a little terrace.
0:40:22 > 0:40:24Tell me why you wanted to buy it.
0:40:24 > 0:40:27Basically, my work that I was doing, I had finished,
0:40:27 > 0:40:31looking for another job, couldn't get the work I wanted
0:40:31 > 0:40:34and I decided to go back to what I have done in the past.
0:40:34 > 0:40:36Right. What kind of work were you doing?
0:40:36 > 0:40:40I was the director of a company that dealt with all the major fire and floods in the UK.
0:40:40 > 0:40:43- But this is something you have done in the past.- Yes.
0:40:43 > 0:40:46I have done 5 up before. I have got 13 to rent out.
0:40:46 > 0:40:50All in Nottingham. I have moved up here with work.
0:40:50 > 0:40:52I'm up here and I thought I may as well stay here,
0:40:52 > 0:40:56- the property is a lot cheaper.- Right. So why this particular house?
0:40:56 > 0:40:59The house itself, I thought, was fairly solid.
0:40:59 > 0:41:02It is old-fashioned, but as a whole, pretty sound.
0:41:02 > 0:41:06I thought, that is what I will go for. And it's the right money.
0:41:06 > 0:41:12Need to spend some money on it but in the long-term, rent it out, and maybe sell it in the future.
0:41:12 > 0:41:14What are you going to do to sort it out?
0:41:14 > 0:41:18It needs new damp proofing, new windows, basically a full strip out.
0:41:18 > 0:41:21Re-plaster, most of it will have to be redone.
0:41:21 > 0:41:24New kitchen, I have been speaking to the council,
0:41:24 > 0:41:28they're going to sort out the building regulations out the back.
0:41:28 > 0:41:32We need a proper bathroom. All it is a toilet and a coal store.
0:41:32 > 0:41:36Make it all into one and extend it, so it is a big enough bathroom.
0:41:36 > 0:41:40- And the shower in the kitchen? - I might keep that!
0:41:40 > 0:41:42Put it in another house.
0:41:42 > 0:41:44- It's a classic.- Beautiful!
0:41:44 > 0:41:47'I think he's joking.'
0:41:47 > 0:41:50# Shower your love on me... #
0:41:50 > 0:41:53Well, I'm delighted Martin plans to extend
0:41:53 > 0:41:55and make the most of this terrace.
0:41:55 > 0:41:59I think it deserves it. How much has he set aside for the work?
0:41:59 > 0:42:02About 15 or 16 to put it right. That sort of cost.
0:42:02 > 0:42:04I'm going to do some of it myself.
0:42:04 > 0:42:07- I've got tradesmen that have, from Derby.- What is the timescale?
0:42:07 > 0:42:10- Six to eight weeks. - What about financing this?
0:42:10 > 0:42:14I have paid cash for it. I was going to put the money into a car,
0:42:14 > 0:42:17but I thought I'd be sensible for a change and do this.
0:42:17 > 0:42:19I have just bought a van instead.
0:42:19 > 0:42:21'Sensible!
0:42:21 > 0:42:25'Much better to invest your cash into something that's going to see a return.
0:42:25 > 0:42:29'I like a nice car to but property is generally the safer bet.
0:42:29 > 0:42:32'Given that Martin manages the properties himself,
0:42:32 > 0:42:36'he hasn't got time to be haring around in a luxury motor.'
0:42:36 > 0:42:40Six-month lease, I always say to people, if they ever want to
0:42:40 > 0:42:44buy the house, to give them some incentive, that they can buy at
0:42:44 > 0:42:48the end of say a year, and generally they look after them better.
0:42:48 > 0:42:51I have sold four or five houses in the past.
0:42:51 > 0:42:57- Next for you, back to the auctions? - Hopefully go back to the auction next month to try and buy another one.
0:42:57 > 0:43:00I want to try and keep doing a rolling thing, one a month.
0:43:00 > 0:43:03- Congratulations. Good to meet you. - Nice to meet you.
0:43:03 > 0:43:07- I look forward to seeing how you get on.- Brilliant, thank you.
0:43:07 > 0:43:11So, classy sports car or property empire in Stoke-on-Trent?
0:43:11 > 0:43:15Well, Martin opted for the latter. It is probably a sensible choice.
0:43:15 > 0:43:18But one property a month, that's ambitious.
0:43:18 > 0:43:21If he gets it right though, he can have the houses and the sports car.
0:43:21 > 0:43:24You can find out how he gets on later in the show.
0:43:27 > 0:43:30It's been a while now since we last saw those purchasers.
0:43:30 > 0:43:32Do you think they've been racing through the work?
0:43:32 > 0:43:37Or have the projects ground to a complete halt? Let's go back and find out.
0:43:38 > 0:43:44# I went underground, I went eastbound, I went to Walthamstow... #
0:43:44 > 0:43:49Walthamstow in east London is a popular commuter location.
0:43:49 > 0:43:52The tube to central London takes just under 25 minutes
0:43:52 > 0:43:55and the area has a pleasant villagey feel.
0:43:56 > 0:44:01Ghulam had bought this three-bed terrace for 198,000 to add
0:44:01 > 0:44:05to his family's buy to let portfolio.
0:44:05 > 0:44:09He is a contracts and commission officer with the local authority.
0:44:09 > 0:44:11He is due to retire soon
0:44:11 > 0:44:14and will then concentrate on property developing.
0:44:14 > 0:44:18Daughter Hina's a mum with two children.
0:44:18 > 0:44:22She and her husband are building their own buy to let portfolio.
0:44:22 > 0:44:23On this project,
0:44:23 > 0:44:27she intended to work with builders that she'd worked with before.
0:44:27 > 0:44:30They planned to extend up the back to create a new bathroom and kitchen
0:44:30 > 0:44:36diner, but I had tried to convince them to put the bathroom upstairs.
0:44:36 > 0:44:40Have you thought about having a bathroom in between the big
0:44:40 > 0:44:43bedroom at the front and the second bedroom?
0:44:43 > 0:44:46To be honest, I never thought about having it in the second bedroom.
0:44:46 > 0:44:48But it seems like an excellent idea.
0:44:48 > 0:44:52'Well, just seven weeks later, back in Walthamstow,
0:44:52 > 0:44:54'the house is finished.
0:44:55 > 0:45:00'It's changed from '60s mellow yellow to white. Much better.
0:45:07 > 0:45:11'I'm glad to see that door has been put back in the front room.
0:45:11 > 0:45:14'This is how the house was laid out, with the front room
0:45:14 > 0:45:19'accessed off the hall and a wall between this and the backroom.
0:45:19 > 0:45:22'I'm also pleased to see that the glass partition
0:45:22 > 0:45:26'and orange kitchen have gone and instead, we have a defined room.
0:45:26 > 0:45:30'It looks like Ghulam and Hina have heeded my advice.
0:45:30 > 0:45:34'There is now a stunning kitchen where the downstairs bathroom
0:45:34 > 0:45:36'had been. But no extension.
0:45:36 > 0:45:40'Every centimetre of the original footprint has been put to
0:45:40 > 0:45:43'good use and what a great result!'
0:45:43 > 0:45:47There used to be a tiny kitchen here, which we have removed.
0:45:47 > 0:45:49And we built a brand-new kitchen where
0:45:49 > 0:45:52there used to be a bathroom and toilet.
0:45:52 > 0:45:55We have brand-new cabinets, brand-new tiling.
0:45:55 > 0:46:00And we have put a couple of new windows with a view to the garden.
0:46:00 > 0:46:02That's a bonus.
0:46:03 > 0:46:07'All three windows have been replaced and the back door.
0:46:07 > 0:46:10'And just look at the garden they've uncovered.
0:46:10 > 0:46:13'That's going to be a great attraction.
0:46:13 > 0:46:16'So no extension or bathroom downstairs.
0:46:16 > 0:46:21'I'm getting a great feeling that upstairs, they might have taken my advice.'
0:46:21 > 0:46:25You could have the bath along there, with a shower coming out,
0:46:25 > 0:46:27toilet, sink.
0:46:27 > 0:46:30'And here it is, just as I imagined,
0:46:30 > 0:46:34'between the large bedroom and the one next door.
0:46:35 > 0:46:37'The measurements were right
0:46:37 > 0:46:40because there is still a decent single out the back.
0:46:44 > 0:46:48'And the large double bedroom at the front hasn't been affected.
0:46:48 > 0:46:52'So is Hina happy now the bathroom's been relocated upstairs?'
0:46:52 > 0:46:54I think it's worked out really well.
0:46:54 > 0:46:57I was worried initially that it would be a little bit small.
0:46:57 > 0:47:00But I think you got just about enough space to make it
0:47:00 > 0:47:02work as a functioning family bathroom.
0:47:02 > 0:47:05The advice we had from Lucy was an excellent idea.
0:47:05 > 0:47:11We sat down with the builder and it was unanimously agreed.
0:47:11 > 0:47:12'With the loo going in the bathroom,
0:47:12 > 0:47:17'it's meant that bedroom three has remained the same size.
0:47:17 > 0:47:21'A team of workers re-skimmed every wall, installed fire doors,
0:47:21 > 0:47:25'rewired the house and put in central heating.
0:47:25 > 0:47:29'And with Ghulam nipping round from his office with his packed
0:47:29 > 0:47:31'lunch to keep his eye on things everyday,
0:47:31 > 0:47:34'all this work has taken just seven weeks.'
0:47:34 > 0:47:39I have been her a few times but because dad's been here every day, project managing it, I've not had
0:47:39 > 0:47:43to have so much of an input in terms of the day-to-day project management.
0:47:43 > 0:47:48'They had set a budget of 27 to 28,000 with a 10% contingency.
0:47:48 > 0:47:53'With no extension to build, how have the numbers stacked up?'
0:47:53 > 0:47:56In terms of budget, obviously, we saved between five
0:47:56 > 0:47:59and £7,000 for not building the extension.
0:47:59 > 0:48:01At the end of the project,
0:48:01 > 0:48:04the actual budget has come to just under 21K.
0:48:04 > 0:48:08'With the £190,000 they paid at auction,
0:48:08 > 0:48:12'that takes their total investment here to 219,000.
0:48:12 > 0:48:15They've already got a tenant lined up.
0:48:15 > 0:48:18'So now it's time to hear the thoughts of two local
0:48:18 > 0:48:22'property experts. What do they think of the refurbishment?'
0:48:22 > 0:48:24I think the standard of work here is very good.
0:48:24 > 0:48:28The refurbishment that they have done is of a very good standard.
0:48:28 > 0:48:31Bringing the bathroom upstairs is a very good idea.
0:48:31 > 0:48:33People prefer a first-floor bathroom.
0:48:33 > 0:48:35Downstairs bathrooms can be a put off,
0:48:35 > 0:48:39so if you have got it upstairs and you have still got enough living
0:48:39 > 0:48:41space, it's going to get you much better prices.
0:48:41 > 0:48:45It's good to have the kitchen and the dining room in one area.
0:48:45 > 0:48:50It's a fresh-look kitchen. It allows people to communicate as well.
0:48:50 > 0:48:55'How much rental income could this house achieve?'
0:48:55 > 0:49:00We will rent this property at £1,250 per calendar month.
0:49:00 > 0:49:05I would expect it to achieve between 1,300 and £1,400 per calendar month.
0:49:05 > 0:49:08Those rental valuations would generate
0:49:08 > 0:49:11a yield of between 6% and 7.5%.
0:49:11 > 0:49:15We had expected between 1,250 and 1,300.
0:49:15 > 0:49:18Anything over 1,300 is excellent, even better.
0:49:18 > 0:49:20What about the resale valuation?
0:49:20 > 0:49:24Could it be more than the 219,000 they've invested?
0:49:24 > 0:49:29If I put it up for sale, I would market the property at £275,000
0:49:29 > 0:49:32and expect to achieve £270,000.
0:49:32 > 0:49:35If we were to market this property for sale,
0:49:35 > 0:49:38it would go between 300 and £310,000.
0:49:38 > 0:49:43That top figure of 310,000 would give a profit of £91,000
0:49:43 > 0:49:45before taxes and expenses.
0:49:45 > 0:49:50While the lower figure of 270,000 would mean a profit of 51 grand.
0:49:50 > 0:49:52What do they think of that?
0:49:52 > 0:49:55I think that 270 is probably the more realistic.
0:49:55 > 0:50:00I think the 300 would be wonderful, but it might be a little on the optimistic side.
0:50:00 > 0:50:05Ghulam is planning to add more properties to his pension portfolio and it looks like
0:50:05 > 0:50:08father and daughter will continue their working partnership.
0:50:08 > 0:50:11After all, They go back a long way!
0:50:11 > 0:50:14We started when I was ten, doing market stalls.
0:50:14 > 0:50:16Hopefully another 20 or 30 years at least.
0:50:16 > 0:50:21We're looking and will hopefully keep doing it for as long as we enjoy it.
0:50:23 > 0:50:25Now we're back to Burslem in Staffordshire,
0:50:25 > 0:50:30one of the six towns that make up the city of Stoke-on-Trent.
0:50:30 > 0:50:32Oatcakes may be the local speciality,
0:50:32 > 0:50:35but it was this mid-terrace that attracted Martin.
0:50:35 > 0:50:42He paid £32,500 for it to add to his growing buy to let portfolio.
0:50:42 > 0:50:45Until recently, he ran a company that
0:50:45 > 0:50:48specialised in the repair of properties damaged by fire or flood.
0:50:48 > 0:50:51What are you going to do to sort it out?
0:50:51 > 0:50:54New damp proofing, new windows, basically a full strip out,
0:50:54 > 0:50:57new kitchen, create a proper bathroom,
0:50:57 > 0:51:00because all it is is a toilet and a coal store.
0:51:00 > 0:51:02- And the shower in the kitchen? - I don't know.
0:51:02 > 0:51:06I might keep that! Put that in another house.
0:51:06 > 0:51:11'But the purchase very nearly didn't happen for fan-of-a-van Martin.'
0:51:11 > 0:51:13I was going to put the money into a car,
0:51:13 > 0:51:17but I thought I'd be sensible for a change and do this.
0:51:17 > 0:51:19I've just bought a van instead.
0:51:20 > 0:51:24'Well, 11 weeks later, Martin's white van has rolled into town.
0:51:24 > 0:51:28'So we can see just what has been achieved.
0:51:30 > 0:51:33'There is no missing the new windows and door.
0:51:33 > 0:51:37'Inside, the damp under the window has been cured.
0:51:37 > 0:51:39'Good to see the fireplace has been retained
0:51:39 > 0:51:43'and the house will dry out now with central heating installed.
0:51:44 > 0:51:48'In the rear dining room, the fireplace has gone,
0:51:48 > 0:51:52'but as Martin explains, his main challenge was the damp issue.'
0:51:52 > 0:51:55The biggest problem was the damp in the property.
0:51:55 > 0:51:58We had to strip the plaster
0:51:58 > 0:52:02and basically it had to be damp proofed, re-skimmed.
0:52:02 > 0:52:05It cost a few extra pounds but that's life.
0:52:05 > 0:52:07At least the job ain't got to be done again.
0:52:07 > 0:52:10# That's life.
0:52:10 > 0:52:13# That's what all the people say... #
0:52:13 > 0:52:16'That shower in the kitchen is gone.
0:52:16 > 0:52:19'And new kitchen units are being installed.
0:52:22 > 0:52:25'Behind this temporary door, the former loo
0:52:25 > 0:52:29and coal store are being demolished, ready for a bathroom at long last.
0:52:29 > 0:52:35'The trouble is the only thing getting wet at the moment is the builder and Martin's not happy.'
0:52:35 > 0:52:38# That's life... #
0:52:38 > 0:52:42Nightmare. The weather has just held us up so bad.
0:52:42 > 0:52:47Whenever we come to start on it, the heavens open.
0:52:47 > 0:52:50We are about three weeks before. It has caused a problem
0:52:50 > 0:52:54and it means I can't finish the rest of the house inside.
0:52:54 > 0:52:57Martin had considered a large extension but decided to
0:52:57 > 0:53:01reduce the size so it would fit within permitted development.
0:53:01 > 0:53:05It meant he only had to get building regulations, rather than full
0:53:05 > 0:53:09planning permission. He decided not to get a mining report.
0:53:09 > 0:53:12He feels confident that the houses have lasted this long
0:53:12 > 0:53:14and as he's intending to let it,
0:53:14 > 0:53:17there won't be any mortgage issues for a potential purchaser.
0:53:17 > 0:53:20And although the work at the back of the ground floor has been
0:53:20 > 0:53:24delayed, the two upstairs bedrooms are finished.
0:53:27 > 0:53:31I'm really pleased he's kept the two fireplaces up here.
0:53:31 > 0:53:34They're part of the history of the house.
0:53:34 > 0:53:35And as Martin discovered,
0:53:35 > 0:53:39there's a great sense of community around here.
0:53:39 > 0:53:43# When you've got friends and neighbours
0:53:43 > 0:53:47# All the world as a happier place. #
0:53:47 > 0:53:50The neighbours have been brilliant, bringing tea and coffee round.
0:53:50 > 0:53:55They all knew the old lady of 90 that lived here.
0:53:55 > 0:54:00Neighbours Clive and Frances have lived next door for almost 25 years.
0:54:00 > 0:54:03Lovely lady, couldn't wish for a nicer neighbour.
0:54:03 > 0:54:06It's nice to think what the property has become, even though she has passed away.
0:54:06 > 0:54:10It has been restored to a nice condition.
0:54:10 > 0:54:14Martin had some tradesmen from Derby to work on the property
0:54:14 > 0:54:17and stay over. But has he helped out too?
0:54:17 > 0:54:21I've come in on some of the time and then some of the decorating.
0:54:21 > 0:54:25Some of the bits and pieces. But I haven't been here all the time.
0:54:25 > 0:54:29Martin paid £32,500 at the auction.
0:54:29 > 0:54:32So how much has he had to spent so far on the refurbishment?
0:54:32 > 0:54:35The original budget of 15, 16,000,
0:54:35 > 0:54:38I think it's going to be about 18, 18,500.
0:54:38 > 0:54:39But in the long-term,
0:54:39 > 0:54:43I hope that comes back in the additional value on the property.
0:54:43 > 0:54:44I'm not too worried.
0:54:44 > 0:54:50The 18,500 Martin spent takes his total investment here to £51,000.
0:54:52 > 0:54:56Time to hear what two local estate agents think of the work.
0:54:56 > 0:54:58I think the property, when it's finished,
0:54:58 > 0:55:02it will be to a good standard. The bathroom is on its way.
0:55:02 > 0:55:05I think the general standard is going to be quite high.
0:55:05 > 0:55:09The essential works have been done so far, rewiring, windows,
0:55:09 > 0:55:11central heating, kitchen.
0:55:11 > 0:55:15I think the period features have been retained, the fireplaces upstairs.
0:55:15 > 0:55:18It's always nice to have a bit of a character to a Victorian house.
0:55:18 > 0:55:21Martin plans to add the property to his buy to let portfolio,
0:55:21 > 0:55:25so how much income could that generate?
0:55:25 > 0:55:29I would anticipate a rental income in the region of £400
0:55:29 > 0:55:30per calendar month.
0:55:30 > 0:55:32Rental figure in today's market,
0:55:32 > 0:55:35I suggest around £395 per calendar month.
0:55:35 > 0:55:38So is Martin pleased with the rental yield of over 9%?
0:55:38 > 0:55:43I was probably hoping for slightly more but once it is fully done,
0:55:43 > 0:55:47people will probably appreciate it and pay a bit more.
0:55:47 > 0:55:50400 wouldn't be the end of the world.
0:55:50 > 0:55:51And the resale valuations?
0:55:51 > 0:55:54Will the local estate agents value at higher than
0:55:54 > 0:55:57the £51,000 he's invested?
0:55:57 > 0:56:01I suggest that we'd market the property at £69,950,
0:56:01 > 0:56:04looking to achieve around £65,000.
0:56:04 > 0:56:07After renovation is completed, I would anticipate
0:56:07 > 0:56:10we would market this property in the region of £70,000.
0:56:10 > 0:56:16A gross profit before taxes and expenses of between 14 and £19,000.
0:56:16 > 0:56:19Fantastic. Lovely. Quite happy with that.
0:56:21 > 0:56:25Neighbours Clive and Frances have had many happy years living here.
0:56:25 > 0:56:31And have struck a quite a friendship with Martin and his builders.
0:56:31 > 0:56:34The neighbours have been fantastic, bringing tea, coffee.
0:56:34 > 0:56:38Can't ask for more. I could almost moving myself.
0:56:38 > 0:56:42Made really good friends with them really. It has been nice.
0:56:42 > 0:56:44- We shall miss them.- We will.
0:56:46 > 0:56:49Buying property at auction is never static or boring.
0:56:49 > 0:56:52You need to know what you're doing and hopefully we can help with that.
0:56:52 > 0:56:56Yes, join us next time for more success stories
0:56:56 > 0:56:59and cautionary tales from the nation's auction rooms,
0:56:59 > 0:57:02- here on Homes Under The hammer. - Goodbye.- Goodbye.
0:57:04 > 0:57:09Subtitles by Red Bee Media Ltd