0:00:02 > 0:00:04- Welcome to the programme. - It's difficult to judge
0:00:04 > 0:00:05what's happening in the property market
0:00:05 > 0:00:08- and you shouldn't really trust what you read or hear.- Mmm.
0:00:08 > 0:00:11One way to see how the market is performing
0:00:11 > 0:00:14is to go along to your local property auction.
0:00:39 > 0:00:42A huge amount of properties sell under the hammer
0:00:42 > 0:00:45so why not pop to your local auction just to see what's on offer?
0:00:45 > 0:00:47You might be surprised by some of the prices.
0:00:47 > 0:00:51So here's what got the bidders going on today's programme.
0:00:52 > 0:00:55In the Cowgate area of Newcastle,
0:00:55 > 0:00:59there are two flats that leave me... Well, quite rarely lost for words.
0:01:01 > 0:01:02Mmm-hmm.
0:01:03 > 0:01:05In Tooting, South London,
0:01:05 > 0:01:09is there or isn't there something to fire my imagination?
0:01:09 > 0:01:10Come on.
0:01:10 > 0:01:12Oooh! There is.
0:01:13 > 0:01:15And in Hanley, Stoke-on-Trent,
0:01:15 > 0:01:18this end terrace has made a big impression on me.
0:01:18 > 0:01:23But in terms of space, yeah, it really is huge.
0:01:23 > 0:01:26All these properties have been sold at auction.
0:01:26 > 0:01:29We'll find out who bought them and what they paid for them
0:01:29 > 0:01:31when they went under the hammer.
0:01:31 > 0:01:32Your lot, sir, well done.
0:01:36 > 0:01:38Welcome to Tyneside.
0:01:38 > 0:01:42On the south bank of the River Tyne is Gateshead,
0:01:42 > 0:01:45whilst across the Millennium Bridge is Newcastle.
0:01:45 > 0:01:47Both have undergone major metamorphoses,
0:01:47 > 0:01:50becoming famous for their iconic architecture,
0:01:50 > 0:01:55reflecting not only their industrial past but also their cultural future.
0:01:59 > 0:02:01I'm heading for Cowgate,
0:02:01 > 0:02:05which lies three miles west of Newcastle's city centre.
0:02:05 > 0:02:07Cowgate has really good transport links,
0:02:07 > 0:02:10which is usually good news for developers.
0:02:10 > 0:02:14However, there doesn't appear to be a lot of developing going on around here.
0:02:14 > 0:02:20I'm here to see a pair of two-bedroom flats guided at £25,000.
0:02:20 > 0:02:24Yup, that's right, two flats for 25 grand.
0:02:24 > 0:02:28Ah, some fairly serious temporary security measures
0:02:28 > 0:02:29have been put in place.
0:02:29 > 0:02:33Judging by the damage to the lock and things,
0:02:33 > 0:02:35I think there might be a reason for that.
0:02:35 > 0:02:37Let's see what the flat has to offer.
0:02:37 > 0:02:39Well, the downstairs one, anyway.
0:02:39 > 0:02:43Through a little entrance area there into your living room.
0:02:44 > 0:02:48But it's not a bad sized space. Clearly in need of some...
0:02:48 > 0:02:52Well, repainting, replastering, whatever you want to call it.
0:02:52 > 0:02:57But it's half decent in terms of size. This is your main living area.
0:02:57 > 0:02:59What on earth is going on with that?
0:02:59 > 0:03:01Yeah, the...
0:03:01 > 0:03:04Whatever it is that's on the walls coming off in a very strange way.
0:03:04 > 0:03:07That's quite an interesting pattern, actually.
0:03:07 > 0:03:11But through here into the kitchen area and this space here,
0:03:11 > 0:03:13your kitchen, it's not a bad size.
0:03:13 > 0:03:17I mean, all in all, it's a reasonable sized property.
0:03:17 > 0:03:21But, again, it looks like all the windows, front and back,
0:03:21 > 0:03:25have been smashed and the doors and things like...
0:03:25 > 0:03:30well, pipes removed and electric cables.
0:03:30 > 0:03:32- OK. - HE CHUCKLES
0:03:32 > 0:03:36Well, somebody's done a lot of the work you'd have to do anyway for you.
0:03:37 > 0:03:39Mmm-hmm.
0:03:39 > 0:03:42# Sometimes silence
0:03:42 > 0:03:45# Says it all... #
0:03:45 > 0:03:50Down the hall, off the living room, are the bathroom
0:03:50 > 0:03:53and two bedrooms - all in need of cosmetic refurbishment.
0:03:55 > 0:04:00All the signs are that security is going to be a problem during renovations
0:04:00 > 0:04:04so making the place secure would be a priority.
0:04:04 > 0:04:07Leaving anything valuable on site will be an issue too,
0:04:07 > 0:04:12as you can remove tools overnight but materials not so easily.
0:04:12 > 0:04:15Upstairs, the second flat has a similar layout
0:04:15 > 0:04:20and, overall, it's in a sad and sorry state.
0:04:23 > 0:04:25A plus point is the garden.
0:04:25 > 0:04:28Yes, it may be overgrown but with a little work,
0:04:28 > 0:04:30it could be a very nice feature
0:04:30 > 0:04:33and attract potential purchasers and tenants.
0:04:33 > 0:04:37Well, it's clear that this property has been through the wars in recent times
0:04:37 > 0:04:40and maybe this isn't the most salubrious of areas,
0:04:40 > 0:04:43but that shouldn't necessarily put you off.
0:04:43 > 0:04:46You're getting a lot of property for the money and, in some instances,
0:04:46 > 0:04:50the local council will actually support the conversion of property
0:04:50 > 0:04:53that are in this kind of state back into habitable places.
0:04:53 > 0:04:55But you also do need to be realistic
0:04:55 > 0:04:58and maybe need to take extra precautions,
0:04:58 > 0:05:00particularly when it comes to security.
0:05:00 > 0:05:05No-one knows the property market in this area better than a local estate agent.
0:05:05 > 0:05:09So let's ask one for his opinion on Cowgate
0:05:09 > 0:05:11and these two flats
0:05:11 > 0:05:15with their combined guide price of £25,000.
0:05:15 > 0:05:18Well, the area itself used to be
0:05:18 > 0:05:20quite a thriving area.
0:05:20 > 0:05:24Unfortunately, recently, it has got a lot of vacant properties.
0:05:24 > 0:05:27It brings the area down. There's a lot of boarded-up properties
0:05:27 > 0:05:30and until that issue is addressed, then, you know,
0:05:30 > 0:05:34the property market in this area can't actually grow.
0:05:37 > 0:05:40Some councils do offer grants and loans to help improve housing stock
0:05:40 > 0:05:44which not only makes decent homes available for rent
0:05:44 > 0:05:46but can also kick-start the housing market.
0:05:46 > 0:05:50How much could this pair of flats achieve if sold?
0:05:50 > 0:05:53If I was going to resell the property...
0:05:53 > 0:05:55I wouldn't recommend it at this moment in time due to,
0:05:55 > 0:05:58unfortunately, there has been quite a few repossessions in the area,
0:05:58 > 0:06:01down-valuing this specific location.
0:06:01 > 0:06:04So I would recommend an asking price
0:06:04 > 0:06:08of around £55,000 to £65,000 for the pair.
0:06:09 > 0:06:14- And rental?- It will be a housing benefit/DSS tenant.
0:06:14 > 0:06:16At the end of the day, it's guaranteed money.
0:06:16 > 0:06:18Bearing that in mind,
0:06:18 > 0:06:21you're looking at around £350 per calendar month per flat.
0:06:25 > 0:06:29Well, intrinsically, there's nothing wrong with this property,
0:06:29 > 0:06:32however, it obviously does come with some ancillary issues
0:06:32 > 0:06:35which you need to factor into your decision-making process.
0:06:35 > 0:06:39Let's see who fancied taking this on when it went under the hammer.
0:06:39 > 0:06:42Do I have a bid of 25 anywhere?
0:06:42 > 0:06:4420,000? 20,000 bid.
0:06:44 > 0:06:45One bid of £20,000.
0:06:45 > 0:06:48Do I have 21 anywhere else?
0:06:48 > 0:06:52Second row at £20,000. Is that a bid?
0:06:52 > 0:06:56Yes? 21 bid. 22?
0:06:56 > 0:06:5822 bid. 23?
0:07:00 > 0:07:04No? £22,000, the gentleman sitting on the second row at 22,000.
0:07:04 > 0:07:07I'll take 500. 22,500 bid. 23?
0:07:07 > 0:07:1123 bid. 23,500?
0:07:11 > 0:07:1323,500 bid. 24?
0:07:13 > 0:07:1524 bid.
0:07:15 > 0:07:2024,500? This gentleman here at 24,000. 24,500 bid.
0:07:20 > 0:07:2325? 25 bid.
0:07:23 > 0:07:2525,500.
0:07:25 > 0:07:29I've got the gentleman at £25,000. I'm selling it once.
0:07:29 > 0:07:31This is your last chance. I'll take 250.
0:07:31 > 0:07:33I'm selling at 25,000.
0:07:33 > 0:07:35I'm selling it once at 25,
0:07:35 > 0:07:37I'm selling for the second time at £25,000.
0:07:38 > 0:07:40The successful bidder was Andrew.
0:07:40 > 0:07:46Although the hammer fell on his bid of 25,000, after the auction,
0:07:46 > 0:07:49he ended up paying £30,000 for both flats,
0:07:49 > 0:07:52due to a misunderstanding between the auction house and the vendor
0:07:52 > 0:07:55over the reserve price.
0:07:55 > 0:07:58Andrew was offered the chance to withdraw from the purchase
0:07:58 > 0:08:00but decided to go ahead.
0:08:00 > 0:08:04Andrew is a financial adviser and mortgage broker.
0:08:04 > 0:08:06He and a silent partner have purchased both properties
0:08:06 > 0:08:10and hope it will be the beginning of a burgeoning portfolio.
0:08:12 > 0:08:16- Andrew, great to meet you.- Hi, Martin.- Congratulations.- Sort of.
0:08:16 > 0:08:19No, it's good. I mean, yeah, I needs a bit of work, but, hey.
0:08:19 > 0:08:22- Tell me why you wanted to buy it. - Price.- Just that?
0:08:22 > 0:08:25We did a little bit of research. From a council point of view as well,
0:08:25 > 0:08:28there's grants available,
0:08:28 > 0:08:32and also there's loans available as well on the property to be able to,
0:08:32 > 0:08:35obviously, to renovate the property
0:08:35 > 0:08:38and there's also a leaseback option to the council,
0:08:38 > 0:08:41which could be very favourable in those sort of terms.
0:08:41 > 0:08:44Tell me more about the incentives offered by the council.
0:08:44 > 0:08:47Yeah, there's an incentive of a low-cost loan
0:08:47 > 0:08:51up to ten years, I think it is, on the repayment basis,
0:08:51 > 0:08:57which obviously would save borrowing costs, additional borrowing costs.
0:08:57 > 0:09:02And obviously a grant on completion and the leaseback option.
0:09:02 > 0:09:04If Andrew decides to go down the leaseback road,
0:09:04 > 0:09:08that could be a relatively headache-free arrangement.
0:09:08 > 0:09:11It would mean the council would house their tenants in the flat
0:09:11 > 0:09:15and assume responsibility for the renovated properties.
0:09:16 > 0:09:20I'd be foolish not to look at the council option for a five, ten-year lease.
0:09:20 > 0:09:22- Yeah.- I think it makes sense.
0:09:22 > 0:09:25And it's also providing housing to somebody who needs it so...
0:09:25 > 0:09:28- And their worry as well. - Council's worry, yeah.
0:09:28 > 0:09:31We're not thinking six months down the line, "It's wrecked again,"
0:09:31 > 0:09:32new tenants, more money out.
0:09:32 > 0:09:35If they wreck it, then the council look after it
0:09:35 > 0:09:37and everyone's a winner.
0:09:43 > 0:09:47It seems as though Andrew has done plenty of research
0:09:47 > 0:09:50and the council incentives certainly seem impressive
0:09:50 > 0:09:53for enticing property developers into the local market.
0:09:55 > 0:09:57What do you do? What's your background?
0:09:57 > 0:10:00- I'm a financial adviser, predominantly a mortgage broker.- Ah.
0:10:00 > 0:10:03- Right.- It's very quiet at the moment.- You're kidding?
0:10:03 > 0:10:05Banks not lending, that sort of thing.
0:10:05 > 0:10:08So we thought, "Well, why not? "We'll give it a go."
0:10:08 > 0:10:10So what you going to do, then, to sort it out?
0:10:10 > 0:10:15Phew. The question is what AREN'T we going to do to sort it out, I think, Martin.
0:10:15 > 0:10:17- I've been in worse, honestly. - Seriously?- Yeah, really.
0:10:17 > 0:10:20Well, I bought it, in effect, blind.
0:10:20 > 0:10:24Fatal mistake I know, but for the price, I thought worth the risk.
0:10:24 > 0:10:27Um... We're going to gut it, we're going to basically...
0:10:27 > 0:10:28Doorframes out...
0:10:29 > 0:10:32..what's left of the kitchen out.
0:10:32 > 0:10:34But, yeah, start from scratch,
0:10:34 > 0:10:37replaster where it needs replastering,
0:10:37 > 0:10:42all-new woodwork, new kitchen, new bathroom, floor and carpets,
0:10:42 > 0:10:44decor, windows, door...
0:10:44 > 0:10:48I think that's the whole house apart from building it.
0:10:48 > 0:10:52Andrew will employ a team of tradesmen to carry out the work
0:10:52 > 0:10:56and has a combined budget of £16,000 for both flats.
0:10:56 > 0:11:01He's keen to get the properties ready for tenants as quickly as possible.
0:11:01 > 0:11:05- So what's the timescale?- Five weeks, maximum.- Oooh, gosh.- Five weeks.
0:11:05 > 0:11:10- That's what we're going to try and achieve.- And after this, the plans?
0:11:10 > 0:11:13Well, if this one goes well... There's a few worries.
0:11:13 > 0:11:16I think firstly the main worry is,
0:11:16 > 0:11:19whilst we're doing the renovation works,
0:11:19 > 0:11:22that we're going to get broken into, things stolen.
0:11:22 > 0:11:25I think the shutters being on the windows and the doors,
0:11:25 > 0:11:29I think they will stay on until literally as late as possible,
0:11:29 > 0:11:31just to stop people obviously coming in
0:11:31 > 0:11:34and ruining the works that have been carried out.
0:11:34 > 0:11:37And it sounds like you're being very stoical about it all
0:11:37 > 0:11:40- and quite realistic about the challenges ahead, if you like.- Yeah.
0:11:40 > 0:11:41Which are unfortunate challenges,
0:11:41 > 0:11:43because you've got enough on your plate
0:11:43 > 0:11:47without having to worry about people coming in and taking stuff once you've done the work.
0:11:47 > 0:11:51It's like anything - there's pros and cons in everything you do in life
0:11:51 > 0:11:55and I think the pros of this project far outweigh the possibilities
0:11:55 > 0:11:59of any dangers or any problems that may occur.
0:11:59 > 0:12:03- Well, listen, congratulations. - Thank you.- Good luck with it.
0:12:03 > 0:12:06Luck might be a good thing!
0:12:06 > 0:12:09- And we look forward to seeing how you get on. - Thank you, Martin. Pleasure.
0:12:12 > 0:12:17Well, it seems that Andrew is fully aware of the challenges that lie ahead.
0:12:17 > 0:12:22How is he going to get on? You can find out later in the show.
0:12:25 > 0:12:30Sometimes up-and-coming areas are really a long way from it,
0:12:30 > 0:12:33but sometimes they really do live up to expectations,
0:12:33 > 0:12:36and, in my opinion, Tooting is one of them.
0:12:36 > 0:12:40Sitting comfortably between beautiful Balham and wonderfully wealthy Wimbledon,
0:12:40 > 0:12:45Tooting has got excellent transport, nice housing stock
0:12:45 > 0:12:49and since it's in Wandsworth, the cheapest council tax in the country.
0:12:49 > 0:12:53So save those pennies in tax and spend them on property, I say.
0:12:56 > 0:13:00The neighbouring areas are pricing a lot of purchasers out of the market
0:13:00 > 0:13:04so Tooting suddenly becomes a desirable but, more importantly,
0:13:04 > 0:13:07financially viable option.
0:13:07 > 0:13:11The property I'm here to see is a short stroll from the main transport links.
0:13:11 > 0:13:13"How short?" I hear you ask.
0:13:13 > 0:13:15Well, three minutes.
0:13:15 > 0:13:19How is that for a commute from the station?
0:13:19 > 0:13:22OK, so it's Tooting rail station rather than the tube, but,
0:13:22 > 0:13:24come on, that is not bad.
0:13:24 > 0:13:27And considering it's less than a 30-minute journey
0:13:27 > 0:13:30into the centre of London, in theory,
0:13:30 > 0:13:33you could get from bed to desk in around an hour.
0:13:33 > 0:13:36Anyway, this is the property that makes that dream possible.
0:13:36 > 0:13:41It's a ground floor flat which had a guide price of 170,000.
0:13:44 > 0:13:46So far, not just a promising location -
0:13:46 > 0:13:51the flat still has its original front door, which can be a good sign.
0:13:51 > 0:13:54It might mean loads of original features.
0:13:55 > 0:13:57Wow, fantastic ceiling height.
0:13:57 > 0:14:00Gives you the illusion of so much space
0:14:00 > 0:14:02and look at this funny little doorway here.
0:14:02 > 0:14:04When these were originally built,
0:14:04 > 0:14:07they were put in in case you wanted to link to the next-door property
0:14:07 > 0:14:09for extended family, perhaps.
0:14:09 > 0:14:12But cover that up, block that over and you'll never know it's there.
0:14:12 > 0:14:15A great reception room. That really is a wonderful size.
0:14:15 > 0:14:19This property is described as a three-roomed flat,
0:14:19 > 0:14:21not including the kitchen and bathroom.
0:14:21 > 0:14:25If all the rooms are as well-proportioned as this,
0:14:25 > 0:14:26it's going to be great.
0:14:29 > 0:14:31Now, I'm guessing this is the bedroom.
0:14:31 > 0:14:35Once you've taken all these cupboards out - and there are loads of them -
0:14:35 > 0:14:38you'd have a room that's a really good size.
0:14:38 > 0:14:41But what do you think is behind here? Oh, I can't wait.
0:14:41 > 0:14:43There might be another fireplace, the same as next door.
0:14:43 > 0:14:45Shall we have a little look? Come on.
0:14:46 > 0:14:49Oh, there is. Look at that!
0:14:49 > 0:14:52Absolutely stunning.
0:14:52 > 0:14:57Years and years of dust, but that is beautiful. What a treat.
0:14:57 > 0:15:00That has probably been boarded up for many years.
0:15:00 > 0:15:03Whoever takes this on is going to love finding that.
0:15:03 > 0:15:07But a great property and a really, really good start.
0:15:16 > 0:15:19Next door to the bedroom is the bathroom.
0:15:19 > 0:15:24Well, shower room, actually. And its charms are bit more well hidden.
0:15:24 > 0:15:26Not having a bath can be a deal breaker
0:15:26 > 0:15:28so I'd think about fitting a bath with a shower over it.
0:15:28 > 0:15:33Now, they do say third time lucky, but I'm not sure that holds here.
0:15:34 > 0:15:37At the back of the flat is the third room in this property,
0:15:37 > 0:15:39but what is it?
0:15:39 > 0:15:42It could be either a dining room or second bedroom
0:15:42 > 0:15:44and certainly needs some redecoration.
0:15:44 > 0:15:48Every ceiling seems to have those polystyrene tiles
0:15:48 > 0:15:49and they just have to go.
0:15:49 > 0:15:53But tantalisingly, there could be another great fireplace
0:15:53 > 0:15:55hidden behind that storage heater.
0:15:55 > 0:15:58I suppose this might be a dining room as it leads to the kitchen,
0:15:58 > 0:16:02but that would mean there's just one bedroom. Hmm.
0:16:02 > 0:16:06However, there's one last hidden charm - a garden.
0:16:06 > 0:16:08Fantastic.
0:16:13 > 0:16:16This garden could be a real asset once tidied up.
0:16:16 > 0:16:19It also opens up another possibility -
0:16:19 > 0:16:23putting a French window at the back or on the side return,
0:16:23 > 0:16:26subject to freeholder consent, of course.
0:16:26 > 0:16:27As a developer, though,
0:16:27 > 0:16:30I'd think about how to use the space already there,
0:16:30 > 0:16:33without needlessly spending cash.
0:16:33 > 0:16:37It's possibly the back room off the kitchen could become the living room
0:16:37 > 0:16:40and the two rooms at the front of the house could be spacious bedrooms.
0:16:40 > 0:16:44That would keep any costly structural changes to a minimum.
0:16:44 > 0:16:49So with two-bed flats around here going for about 280,000 -
0:16:49 > 0:16:50ker-ching!
0:16:55 > 0:16:59You don't have to be a genius to work out that this flat,
0:16:59 > 0:17:00it really adds up.
0:17:00 > 0:17:04Say you bought it for around the guide price of 170,000,
0:17:04 > 0:17:09spent 30,000 doing it up, you'd walk away, before tax and expenses,
0:17:09 > 0:17:12with 80 grand in profit.
0:17:12 > 0:17:14If only they were all that easy.
0:17:15 > 0:17:18We invited a local estate agent along to see
0:17:18 > 0:17:20if he agreed about the potential profits here.
0:17:20 > 0:17:22First impressions of the flat -
0:17:22 > 0:17:25obviously it needs quite a bit of work to the property.
0:17:25 > 0:17:28I'd say the layout is very good, just needs to be updated.
0:17:28 > 0:17:30I think you'd be looking at quite a good sale
0:17:30 > 0:17:32once the property is done up.
0:17:33 > 0:17:36Once renovated, how much could this property sell on for?
0:17:38 > 0:17:40With the property being fully refurbished,
0:17:40 > 0:17:44I'd say you'd probably be looking at putting it on the market for about 300,000.
0:17:44 > 0:17:47You're likely to receive offers of about £10,000 to £15,000
0:17:47 > 0:17:48beneath the asking price.
0:17:48 > 0:17:50And rental?
0:17:50 > 0:17:52With it being refurbished, you'd more than likely be looking at
0:17:52 > 0:17:57putting the property on for about £1,200 to £1,300 per calendar month.
0:18:00 > 0:18:03Tooting is a top place to put your pennies, if you ask me,
0:18:03 > 0:18:07and this flat, it adds up in every which way.
0:18:07 > 0:18:09Let's see who agreed at the auction.
0:18:10 > 0:18:13Who'd like to kick off on this?
0:18:13 > 0:18:15I don't know - 175?
0:18:16 > 0:18:18175 down here.
0:18:18 > 0:18:19180.
0:18:19 > 0:18:22185. 190. 195.
0:18:22 > 0:18:25200, sir. 196, 197.
0:18:25 > 0:18:30198. 199. 200.
0:18:30 > 0:18:35201. 202. 203.
0:18:35 > 0:18:38204. 203, back to here.
0:18:38 > 0:18:42204. 204. 205.
0:18:42 > 0:18:45Well, this is certainly a hot property.
0:18:45 > 0:18:47The bidding is fast and furious.
0:18:47 > 0:18:51We pick it up again at 230,000.
0:18:51 > 0:18:53230. 231.
0:18:53 > 0:18:55232. 233.
0:18:55 > 0:18:57234.
0:18:57 > 0:18:59235. 236.
0:18:59 > 0:19:03237. 238.
0:19:03 > 0:19:05239. 240.
0:19:05 > 0:19:08239, first time, second time,
0:19:08 > 0:19:11third and last time, if you're all done...
0:19:11 > 0:19:15That successful bid of 239,000 -
0:19:15 > 0:19:1869 grand over the guide price -
0:19:18 > 0:19:21came from husband and wife Gary and Pam.
0:19:21 > 0:19:24Both used to work in banking but as they've now retired
0:19:24 > 0:19:27they've decided the place to put their cash is property.
0:19:27 > 0:19:30So if anyone knows about financial dealings, it should be them.
0:19:30 > 0:19:32Lovely to meet you both today.
0:19:32 > 0:19:36Interestingly, you went a fair bit over the guide price on auction day, didn't you?
0:19:36 > 0:19:40Yeah, we'd actually set an upper limit that we were prepared to go to
0:19:40 > 0:19:43- and we were just under it... - Brilliant.
0:19:43 > 0:19:45..so literally another thousand or two
0:19:45 > 0:19:47and we would have counted ourselves out.
0:19:47 > 0:19:51Are you guys currently working as well as doing this or is this your main job now?
0:19:51 > 0:19:52No, this is our main job.
0:19:52 > 0:19:54We both used to work in the finance sector
0:19:54 > 0:19:57but we took retirement at different times in the last five years
0:19:57 > 0:20:00so this is now more of a hobby for us.
0:20:00 > 0:20:02So your reason for buying this property?
0:20:02 > 0:20:05Well, it was really because we had some money that was not doing
0:20:05 > 0:20:07very much in the bank and it was a project
0:20:07 > 0:20:11we have been looking for for the last nine or ten months,
0:20:11 > 0:20:15and so we decided that this was the better place to put the money and...
0:20:15 > 0:20:17Keep me out of the pub.
0:20:17 > 0:20:18LAUGHTER I like it!
0:20:20 > 0:20:25# They're calling out Last orders at the bar... #
0:20:25 > 0:20:27It's last orders for Gary.
0:20:27 > 0:20:30I wonder if that was under orders from Pam.
0:20:30 > 0:20:33Will she be the boss when it comes to this renovation?
0:20:35 > 0:20:39So, how does it work with you two? Is it perfect, harmonious teamwork?
0:20:39 > 0:20:41- If we are in separate rooms. - SHE LAUGHS
0:20:41 > 0:20:45It's teamwork. It's not always harmonious, because sometimes we'll have
0:20:45 > 0:20:48disagreements about what we want to do or what job needs to be done
0:20:48 > 0:20:51next, but generally it all works out and there's not too many
0:20:51 > 0:20:55slammed doors or tools thrown down in frustration.
0:20:55 > 0:20:56Only by me, occasionally.
0:20:56 > 0:21:01I think at the end of the day Gary usually realises that I'm right in what I'm saying, so...
0:21:01 > 0:21:03- THEY LAUGH - Yes.
0:21:03 > 0:21:06Save the arguments, and just do it my way.
0:21:06 > 0:21:08So what about the internal space in the flat?
0:21:08 > 0:21:12- It does sort of go on and on forever, doesn't it?- It does rather.
0:21:12 > 0:21:13Yes, it's a nice large flat,
0:21:13 > 0:21:16and clearly there is a lot of work that needs to be done,
0:21:16 > 0:21:20but we're not looking to change the room layouts at all,
0:21:20 > 0:21:24except maybe block up the door into the garden
0:21:24 > 0:21:27and put French windows in place of the door there.
0:21:27 > 0:21:30What about the bathroom, are you going to change that?
0:21:30 > 0:21:33Thinking about that, to be honest,
0:21:33 > 0:21:36I think we could probably leave it as is. It's not that old.
0:21:36 > 0:21:39With a good cleanup I think it will come up quite nice, actually.
0:21:39 > 0:21:42These days, most people are not that bothered about a bath,
0:21:42 > 0:21:44they are quite happy with a shower anyhow.
0:21:44 > 0:21:46Would you like to live somewhere without a bath?
0:21:46 > 0:21:48- I'm a bath person, so the answer to that is no.- Me too.
0:21:48 > 0:21:51- What about you, Gary? - I'm a shower person.- Not a bath?
0:21:51 > 0:21:53Would you not ever fancy laying in a bath?
0:21:53 > 0:21:55- No.- And what about the fireplaces?
0:21:55 > 0:21:57They are a fabulous find, they really are.
0:21:57 > 0:22:01How exciting to find that other fireplace behind that piece of old board.
0:22:01 > 0:22:03- It's fantastic, isn't it? - It is, exactly.
0:22:03 > 0:22:06So, quite looking forward to sort of sprucing all that up and seeing
0:22:06 > 0:22:09how that comes up, but it's quite surprising for a property like this
0:22:09 > 0:22:14to find such an elaborate fireplace, so I'm quite pleased about that. Usually they are little bit plainer.
0:22:14 > 0:22:16Well, I can't wait to see what you do there.
0:22:16 > 0:22:20My big question to you is, do you think... SHE KNOCKS ON WALL
0:22:20 > 0:22:21there might be one behind there?
0:22:21 > 0:22:24I suspect it's the old hearth, the open hearth,
0:22:24 > 0:22:27and it's just been boarded over, so I'm afraid if there is
0:22:27 > 0:22:30a fireplace there, it's just going to be very utilitarian
0:22:30 > 0:22:33and kind of brick or block, so we'll have to wait and see.
0:22:34 > 0:22:36The couple have a four-month timescale,
0:22:36 > 0:22:38and once the renovations are complete,
0:22:38 > 0:22:41depending on the market they'll decide whether to sell or let it.
0:22:44 > 0:22:46So, am I right in saying you're going to be on the money, you two?
0:22:46 > 0:22:51We are looking at probably a budget of about around the 15,000 mark.
0:22:51 > 0:22:53I think the work that needs to be done here,
0:22:53 > 0:22:56certainly the windows need replacing, need to look at the electrics.
0:22:56 > 0:23:00Also central heating. At the moment it's storage heaters.
0:23:00 > 0:23:04And obviously a new kitchen. So they are the main expenditure areas.
0:23:04 > 0:23:07The rest of it hopefully is just decor.
0:23:07 > 0:23:09Of course, we just need to be wary that
0:23:09 > 0:23:13once we take all those off exactly what might be lurking underneath.
0:23:13 > 0:23:16They are everywhere! Everywhere!
0:23:16 > 0:23:19So, that's Gary's first job, is to take all those down.
0:23:19 > 0:23:22Oh, you're going to get neck ache, Gary. You really are!
0:23:22 > 0:23:25Well, guys, I'm really looking forward to seeing the outcome here.
0:23:25 > 0:23:28I can't wait to see what it's like. Good luck with this project.
0:23:28 > 0:23:32- Thank you.- We'll be back to check up on you.- Thanks very much.- Thank you. - Well done.
0:23:33 > 0:23:38Even for the price they paid, this is still a good buy for Pamela and Gary.
0:23:38 > 0:23:41I'm looking forward to seeing this flat brought back to life,
0:23:41 > 0:23:47and find out if there is going to be another fireplace, will they keep or sell, and will there be a bath?
0:23:47 > 0:23:51I do hope so. You can find out how it all goes later on in the show.
0:23:53 > 0:23:55Coming up in Stoke-on-Trent,
0:23:55 > 0:23:57what you see is not necessarily all you get.
0:23:59 > 0:24:02It's a very small garden, but all is not lost.
0:24:03 > 0:24:04In Tooting, South London,
0:24:04 > 0:24:08we find out if this husband-and-wife team turned the air blue.
0:24:08 > 0:24:09Some debate about colours
0:24:09 > 0:24:12but I think that we've struck the right tone.
0:24:14 > 0:24:16But first it's back to Newcastle to see
0:24:16 > 0:24:19if property development means a change is as good as a rest.
0:24:19 > 0:24:22- HE SIGHS - I'm considering having a break for a while, I know that.
0:24:26 > 0:24:30Welcome back to Newcastle, and the area of Cowgate.
0:24:32 > 0:24:35The auction lot I viewed was boarded up on the outside
0:24:35 > 0:24:37and broken down on the inside.
0:24:41 > 0:24:44The property consisted of a pair of two-bedroomed flats, and it was
0:24:44 > 0:24:50purchased for £30,000 by financial adviser and mortgage broker, Andrew.
0:24:52 > 0:24:54With the backing of a silent partner,
0:24:54 > 0:24:58Andrew was diversifying by building a rental property portfolio.
0:25:00 > 0:25:02Financial adviser and mortgage broker -
0:25:02 > 0:25:04must have been tough few years for you.
0:25:04 > 0:25:08Very tough. So, hanging on by a thread I think is the term.
0:25:09 > 0:25:12We are returning just over two months later to find out
0:25:12 > 0:25:16if his first step on the buy-to-let property ladder has been a success.
0:25:19 > 0:25:22Well, that lawnmower has been busy all right -
0:25:22 > 0:25:24what an incredible transformation.
0:25:24 > 0:25:30Never mind first steps, it looks like Andrew has taken giant leaps.
0:25:30 > 0:25:34But will I be as impressed by the transformation inside?
0:25:34 > 0:25:36Let's take a look at the ground floor flat.
0:25:38 > 0:25:42# Take the first step The hardest to take
0:25:44 > 0:25:48# Breaking away
0:25:48 > 0:25:53# Take the first step Whatever it takes
0:25:54 > 0:25:57# All the way
0:25:57 > 0:26:02# You're already there... #
0:26:02 > 0:26:04Although there are a few finishing touches still to be applied,
0:26:04 > 0:26:08an amazing amount of work has been done.
0:26:08 > 0:26:10It's been a bigger job than I thought.
0:26:10 > 0:26:14There's been a bit of a culture shock from sitting behind a desk and organising mortgages,
0:26:14 > 0:26:17and obviously the challenges that go with that.
0:26:17 > 0:26:22A totally and utterly different set of challenges with doing this type of work.
0:26:29 > 0:26:32His greatest challenge was organising the tradespeople
0:26:32 > 0:26:37to carry out the work, including plastering all the walls and ceilings,
0:26:37 > 0:26:40fitting new architrave and skirting,
0:26:40 > 0:26:46electrical rewiring and installing the new plumbing and central heating system.
0:26:46 > 0:26:48We've tried to make it look as high-spec is possible,
0:26:48 > 0:26:52and there is high-spec stuff that's actually gone into the project,
0:26:52 > 0:26:55but a little bit of bargaining and a little bit of shopping around,
0:26:55 > 0:27:01and we've managed to get basically some really high-spec stuff at a fraction of the cost.
0:27:05 > 0:27:08The back garden was under-tended and overgrown.
0:27:08 > 0:27:12It is now a safe and secure place for perhaps either children to play
0:27:12 > 0:27:14or adults to enjoy a barbecue.
0:27:14 > 0:27:16But it was no easy task.
0:27:17 > 0:27:20Underneath the tumultuous amount of nettles and everything else
0:27:20 > 0:27:25there was a half-demolished pond,
0:27:25 > 0:27:31there was asbestos tiles, there was plenty of unsavoury things,
0:27:31 > 0:27:34which I don't really want to go into.
0:27:34 > 0:27:36But there was a lot of things there which,
0:27:36 > 0:27:38let's say shouldn't be in a garden.
0:27:38 > 0:27:43Which meant that there was a big clearing up job to do,
0:27:43 > 0:27:46which obviously took a lot longer than we anticipated.
0:27:46 > 0:27:50Let's take a peek at the flat upstairs.
0:27:50 > 0:27:53Andrew's bargain-hunting has reaped rewards in the kitchen.
0:28:07 > 0:28:09And also in the bathroom,
0:28:09 > 0:28:12where he's fitted an integrated spa shower and bath,
0:28:12 > 0:28:16purchased for just £150 from a website,
0:28:16 > 0:28:20which he feels adds a touch of luxury.
0:28:20 > 0:28:23These flats are destined for the rental market,
0:28:23 > 0:28:27and Andrew has been taking advantage of council incentives
0:28:27 > 0:28:32to regenerate properties which have been abandoned such as this.
0:28:32 > 0:28:34The council have been fantastic.
0:28:34 > 0:28:38I'm making use of their tenant finding service as well.
0:28:38 > 0:28:43They also offer a grant. Well, that's been approved, that's the good news.
0:28:43 > 0:28:47And £2,000 each property will be coming back.
0:28:47 > 0:28:49Soon, hopefully!
0:28:50 > 0:28:54Andrew has gone a couple of weeks over his five-week schedule.
0:28:54 > 0:28:59He had hoped to spend £16,000 renovating both flats,
0:28:59 > 0:29:04but he has spent just under 25,000, which, when added to
0:29:04 > 0:29:09the purchase price of 30,000, makes his total investment £55,000.
0:29:16 > 0:29:18So, was it money well spent?
0:29:18 > 0:29:23We asked to local estate agents to give us their opinion on the flats.
0:29:23 > 0:29:27The flats have been refurbished to a very high standard,
0:29:27 > 0:29:29and they've both got modern bathroom suites.
0:29:29 > 0:29:32The upstairs is particularly nice with the spa shower in it,
0:29:32 > 0:29:35which will appeal to both buyers and people looking to rent.
0:29:35 > 0:29:38It could be said that the purchaser of the property has put
0:29:38 > 0:29:42a lot of money into the property for tenanting purposes.
0:29:42 > 0:29:44It's brought the standard of the property up a lot.
0:29:44 > 0:29:47This one is brilliant. Absolutely brilliant.
0:29:49 > 0:29:54Bearing in mind Andrew's total investment so far of 55,000,
0:29:54 > 0:29:56how much could these flats achieve if sold?
0:29:58 > 0:30:02I would market the ground floor flat at £35,000,
0:30:02 > 0:30:05and the upstairs flat at £40,000.
0:30:05 > 0:30:07If I was to put these flats on the market,
0:30:07 > 0:30:11I would value each flat at a valuation of £35,000 to £40,000.
0:30:13 > 0:30:17Those valuations, if achieved, would give Andrew and his silent partner
0:30:17 > 0:30:22a potential pre-tax profit of between 15 and £25,000
0:30:22 > 0:30:25minus the usual selling expenses, of course.
0:30:25 > 0:30:29But his first preference is to let the properties.
0:30:29 > 0:30:35I would expect to achieve £350 per calendar month per each flat.
0:30:35 > 0:30:38Potentially with the high specification, though,
0:30:38 > 0:30:43there could be a possibility that £375 per calendar month could be achieved.
0:30:43 > 0:30:46The rental market within the Cowgate area is very strong.
0:30:46 > 0:30:49These flats have been done to such a high standard that you could
0:30:49 > 0:30:54achieve between £375 per calendar month to £400 per calendar month.
0:30:54 > 0:30:56By working with the local council,
0:30:56 > 0:30:59Andrew believes he can do better than those figures.
0:30:59 > 0:31:04I've been advised that £450 per calendar month for each flat would be achievable.
0:31:04 > 0:31:07And at that sort of yield for that sort of money,
0:31:07 > 0:31:10you'd be hard pressed to find a better investment anywhere.
0:31:10 > 0:31:14Since filming, Andrew has in fact sold the ground floor flat
0:31:14 > 0:31:17for £58,500.
0:31:17 > 0:31:20The upper flat is under offer at the same amount,
0:31:20 > 0:31:23so is he considering a return to the auctions?
0:31:23 > 0:31:26- HE SIGHS - I'm considering having a break for a while, I know that!
0:31:26 > 0:31:28Yeah, I'd take maybe another one or two on,
0:31:28 > 0:31:32and hopefully achieve a similar sort of goal.
0:31:35 > 0:31:38Today I'm in Hanley in Stoke-on-Trent.
0:31:38 > 0:31:41Amongst other things, this was the home of Reginald Mitchell,
0:31:41 > 0:31:46whose statue is here outside the Potteries Museum And Art Gallery.
0:31:46 > 0:31:50In case you don't know, Reginald Mitchell was the man who designed one of the most
0:31:50 > 0:31:54significant and important aircraft in the history of the world ever -
0:31:54 > 0:31:55The Spitfire.
0:31:55 > 0:31:58And so, will today's property be a high flyer?
0:31:58 > 0:32:01# Straighten up and fly right
0:32:01 > 0:32:04# Cool down, papa Don't you blow your top... #
0:32:04 > 0:32:07There's only one way to find out.
0:32:07 > 0:32:12Well, just a short walk from the centre is the property I'm here to see.
0:32:12 > 0:32:19It's a two-bedroomed end of terrace, which had a guide price of 35,000 quid.
0:32:19 > 0:32:23Now, for that, you are going to expect something pretty modest, aren't you?
0:32:23 > 0:32:25Well, you'd be wrong.
0:32:25 > 0:32:28Because, it is huge.
0:32:28 > 0:32:34# It's not my imagination I got a big, big love for you... #
0:32:34 > 0:32:38This end-of-terrace certainly seems fantastic value from the outside.
0:32:38 > 0:32:41This is a lot of property for not a lot of money.
0:32:44 > 0:32:47The fact the house is in this elevated position is a really
0:32:47 > 0:32:50nice start, because it gives some nice views out of the window
0:32:50 > 0:32:52and quite big windows they are, too.
0:32:52 > 0:32:54But through the front door into this, your first room,
0:32:54 > 0:32:58your living room. It looks like in half decent condition.
0:32:58 > 0:33:01Open fire there which is a bit of a feature.
0:33:01 > 0:33:03And then through to your rear living room area.
0:33:03 > 0:33:07Again, it looks like it's been relatively recently decorated.
0:33:07 > 0:33:10Flooring needs sorting out, but the space is good,
0:33:10 > 0:33:16and it gets better, because continuing back, you come to the kitchen.
0:33:16 > 0:33:19This is tired and dated and needs to be replaced,
0:33:19 > 0:33:21but at least you've got a reasonable amount of space.
0:33:21 > 0:33:23I would consider taking out some of these walls, though,
0:33:23 > 0:33:28because it makes it a little bit cramped, because it just carries on going back and back.
0:33:28 > 0:33:34You've got this utility area here, and then right at the very rear of the property, your bathroom and loo.
0:33:34 > 0:33:35It's the only one in the house,
0:33:35 > 0:33:39and it's quite a trek from anywhere to get to it.
0:33:39 > 0:33:43But in terms of space, yeah, it really is huge.
0:33:43 > 0:33:47# Well, there's a great big moon above
0:33:47 > 0:33:49# Well, honey, I got A big, big love. #
0:33:49 > 0:33:53Yes, I'm very taken with the proportions here, but not quite
0:33:53 > 0:33:58so keen on the Artex, which seems to cover every wall and ceiling.
0:33:58 > 0:34:02Up some fairly narrow stairs there are two good-sized double bedrooms.
0:34:02 > 0:34:04One overlooks the front of the property,
0:34:04 > 0:34:07and the other overlooks the back.
0:34:07 > 0:34:10But remember, there is no bathroom up here, and unfortunately
0:34:10 > 0:34:14the space diminishes the minute you step outside the back door.
0:34:14 > 0:34:18Well, at the rear of the property, there is this area here.
0:34:18 > 0:34:21Now, it's largely taken up with this extension,
0:34:21 > 0:34:24so, as a result, it's a very small garden.
0:34:24 > 0:34:27But all is not lost, because...
0:34:27 > 0:34:31Just opposite the house is a really lovely park.
0:34:31 > 0:34:38# I'm in a wide open space I'm staring
0:34:38 > 0:34:45# There's something quite bizarre I cannot see... #
0:34:46 > 0:34:50With its great location, plenty of inside space
0:34:50 > 0:34:54and guide price of 35,000, it's time to hear what a local
0:34:54 > 0:34:56estate agent thinks about this place.
0:34:58 > 0:35:02First impressions of the property, general modernisation is required.
0:35:02 > 0:35:04The kitchen, the bathroom, the windows.
0:35:04 > 0:35:08Depending on whether it's going to be a rental property or resale
0:35:08 > 0:35:12property, will have an impact on the type of works that are carried out.
0:35:12 > 0:35:15There's quite a large extension to the rear,
0:35:15 > 0:35:19which is slightly unusual for this type of property.
0:35:19 > 0:35:23With this much space, it sounds like this could be a good buy.
0:35:23 > 0:35:29After renovation, I would anticipate a resale value in the region of £70,000.
0:35:29 > 0:35:32So, if you're careful with your pennies in the renovation,
0:35:32 > 0:35:34there's definitely money to be made here.
0:35:34 > 0:35:39The rental income would be in the region of £400 to £450 per calendar month.
0:35:39 > 0:35:46Based on those figures, that rental income could give you a very healthy yield of around 10%.
0:35:46 > 0:35:49Well, back to the park for a bit of contemplation,
0:35:49 > 0:35:52and I think this is a really good property to go for.
0:35:52 > 0:35:56Solid house, good rental yield - it's a no-brainer.
0:35:56 > 0:35:59Let's see who agreed when it went under the hammer.
0:36:01 > 0:36:07Lot 76 is an end terrace house convenient for the city centre.
0:36:07 > 0:36:11What's this? 25,000 to start on this one. 25 bid.
0:36:11 > 0:36:15Thank you, at £25,000 looking for 26 now.
0:36:15 > 0:36:18£26,000. £27,000.
0:36:18 > 0:36:2128? £28,000.
0:36:21 > 0:36:23£29,000.
0:36:23 > 0:36:27500 you're saying. 29-and-a-half. 30.
0:36:27 > 0:36:29New bidder, 30-and-a-half.
0:36:29 > 0:36:3131. 31-and-a-half.
0:36:31 > 0:36:3332. 32-and-a-half.
0:36:33 > 0:36:3633. 33-and-a-half.
0:36:36 > 0:36:3734? 34.
0:36:37 > 0:36:4034-and-a-half. 35.
0:36:40 > 0:36:4235-and-a-half.
0:36:42 > 0:36:4436. 36-and-a-half.
0:36:44 > 0:36:4737. 37-and-a-half.
0:36:47 > 0:36:5038. 38-and-a-half.
0:36:50 > 0:36:5339. 39-and-a-half.
0:36:53 > 0:36:59£39,500, then, first time. 39,500, second time.
0:36:59 > 0:37:04Third and final time, 39,500, your lot, sir. Well done.
0:37:04 > 0:37:07Along with his business partner David,
0:37:07 > 0:37:11financial adviser Neil made that winning bid of 39,500,
0:37:11 > 0:37:14£4,500 over the guide price.
0:37:14 > 0:37:17David and Neil are not just business partners,
0:37:17 > 0:37:21they are related through marriage, too. But more of that later.
0:37:21 > 0:37:24They have combined forces with Neil's wife, Trisha, in this,
0:37:24 > 0:37:26their fifth property together.
0:37:26 > 0:37:29- Neil, David, great to meet you both. - Nice to meet you.- Morning.
0:37:29 > 0:37:31- Congratulations.- Thank you.
0:37:31 > 0:37:34- Tell me why you wanted to buy this place.- Er, it was a good price.
0:37:34 > 0:37:38That's always a good start. Nice area, lovely views over the park.
0:37:38 > 0:37:39Close to Hanley town centre,
0:37:39 > 0:37:42so everything a young family is probably likely to need.
0:37:42 > 0:37:44Right. Are you from the area?
0:37:44 > 0:37:48- No, I'm from Birmingham. - I'm from mid-Wales.
0:37:48 > 0:37:51Right, so, what attracted you into the Stoke-on-Trent area?
0:37:51 > 0:37:55It's really the rental value in relation to the property value.
0:37:55 > 0:37:59How do you get on with the long-distance managing of property?
0:37:59 > 0:38:03- It's easy, I don't do any of it. - LAUGHER
0:38:03 > 0:38:05I just seem to spend a lot of time in the car, that's all.
0:38:05 > 0:38:08And who's going to do the work?
0:38:08 > 0:38:11- Er, I shall be doing various bits and pieces. - THEY LAUGH
0:38:11 > 0:38:15I've got various contractors coming in to look at things.
0:38:15 > 0:38:18As you say, technical side will be left to the people that know.
0:38:18 > 0:38:20The simple stuff will be left to myself.
0:38:20 > 0:38:24So, tell me about your partnership. What do you both do? Is this your full-time jobs?
0:38:24 > 0:38:28- It's his full-time job, and not me. - Right.- I'm a financial adviser.- OK.
0:38:28 > 0:38:32So, I do research for the properties we buy at weekends and evenings.
0:38:32 > 0:38:36My wife runs the administration of the business,
0:38:36 > 0:38:40and David is project manager looking after the specific properties that we buy.
0:38:40 > 0:38:43Right. And how does it work financially between you?
0:38:43 > 0:38:46- Is it a joint venture between you all?- It's a joint venture.
0:38:46 > 0:38:50We share the profits. We bought five houses in the last two months now.
0:38:50 > 0:38:55- Oh, my goodness!- So those are in various stages of being ready.
0:38:55 > 0:38:59They'll go on the market and hopefully they'll sell some and keep some.
0:38:59 > 0:39:03- You seem to be doing most of the work, David.- Yes.
0:39:03 > 0:39:05It's nice to get your hands dirty now and again, yes.
0:39:05 > 0:39:08And how does it work financially?
0:39:08 > 0:39:13Well, I'm on salary, and as you say I get remunerated each month, so that sorts me out.
0:39:13 > 0:39:17And your background? Do you have much skills in this kind of field?
0:39:17 > 0:39:21Well, basically I've done a lot of house renovation in the past,
0:39:21 > 0:39:25various different types, and also previously I was a quantity surveyor.
0:39:27 > 0:39:30A quantity surveyor and a financial adviser -
0:39:30 > 0:39:33there can't be many problems too big for this pair to tackle.
0:39:33 > 0:39:37So, how did the relationship begin, the business relationship?
0:39:37 > 0:39:41Well, basically, my wife and Neil's wife, they are both sisters.
0:39:41 > 0:39:44Oh, right! So, does that make you brothers-in-law, then?
0:39:44 > 0:39:48Trisha, Neil's wife, is my sister-in-law,
0:39:48 > 0:39:51but that can't make Neil my brother-in-law through marriage.
0:39:51 > 0:39:54- So, what does that make your relationship, actually?- Friends.
0:39:54 > 0:39:58- I'm friends with his wife. - THEY LAUGH
0:40:01 > 0:40:03Well, that's, umm, sorted then... sort of.
0:40:03 > 0:40:05But, whatever the family connections,
0:40:05 > 0:40:09these two are well-equipped with the skills to get this job done.
0:40:10 > 0:40:12So, what are the plans for it, then?
0:40:12 > 0:40:14What are you going to do to sort it out?
0:40:14 > 0:40:17Basically, it's going to be new kitchen, new bathroom,
0:40:17 > 0:40:20check the electrics, check the damp.
0:40:20 > 0:40:24Redecorate inside and basically bring it up to 21st century.
0:40:24 > 0:40:27So, what's the budget for the work?
0:40:27 > 0:40:30We're looking somewhere between £10,000 and £11,000,
0:40:30 > 0:40:32maybe 1,000 for contingency.
0:40:32 > 0:40:34And timescale?
0:40:34 > 0:40:37Roughly around about eight to ten weeks.
0:40:37 > 0:40:41So, what's the plan for this one? Is it to sell it or to rent it out?
0:40:41 > 0:40:42We're hoping to sell it.
0:40:42 > 0:40:45We're looking for an investor to take it over as soon as
0:40:45 > 0:40:48we've finished with it, have it already tenanted,
0:40:48 > 0:40:49so it's a nice investment property.
0:40:49 > 0:40:52Are you not tempted to keep it?
0:40:52 > 0:40:54We are tempted,
0:40:54 > 0:40:56and it really depends on if we get an offer at the right price,
0:40:56 > 0:40:59then we'll sell it, and if we're not happy with any offers we get
0:40:59 > 0:41:02then we're quite comfortable renting it out and keeping it.
0:41:02 > 0:41:04- Well, congratulations. Good luck with it.- Thank you.
0:41:04 > 0:41:06- Look forward to seeing how you get on.- Thanks.
0:41:09 > 0:41:13Well, it can often be a good idea to go into any property venture
0:41:13 > 0:41:14as some kind of a partnership.
0:41:14 > 0:41:19It helps mitigate the risk and you've got somebody to go through the whole experience with you.
0:41:19 > 0:41:22In this case, though, are they right to be considering selling
0:41:22 > 0:41:25when they could get around a 10% yield on this place?
0:41:25 > 0:41:26I'm not so sure.
0:41:26 > 0:41:29You can find out what they eventually decide to do later in the show.
0:41:32 > 0:41:36The seasons have changed, but have the properties changed as well?
0:41:36 > 0:41:39Or have they stayed exactly the same?
0:41:39 > 0:41:40It's time to go back and find out.
0:41:43 > 0:41:45Back in Tooting, South London,
0:41:45 > 0:41:48I viewed this two-bedroom ground floor flat.
0:41:51 > 0:41:55Now, to the untrained eye, this place was in a right old state.
0:41:55 > 0:41:57But if you knew where to look,
0:41:57 > 0:42:00this Victorian period property had hidden charm.
0:42:02 > 0:42:05Look at that! Absolutely stunning.
0:42:07 > 0:42:11It was purchased at auction for 239,000,
0:42:11 > 0:42:14by husband and wife, Gary and Pam.
0:42:14 > 0:42:17They'd both retired from jobs in finance
0:42:17 > 0:42:21and had decided that property was the place to invest their cash.
0:42:21 > 0:42:24This renovation was their third project.
0:42:26 > 0:42:27So, how does it work with you two?
0:42:27 > 0:42:30Is it perfect, harmonious teamwork?
0:42:30 > 0:42:31If we're in separate rooms.
0:42:31 > 0:42:32THEY LAUGH
0:42:32 > 0:42:34It's teamwork, it's not always harmonious,
0:42:34 > 0:42:37cos someone times we'll have disagreements about what
0:42:37 > 0:42:39we want to do or what job needs to be done next.
0:42:39 > 0:42:42But generally it all works out and there's not too many
0:42:42 > 0:42:45slammed doors or tools thrown down in frustration.
0:42:48 > 0:42:50Just under six months later, we're back.
0:42:54 > 0:42:58So, has working hand in hand led to argy-bargy?
0:42:58 > 0:43:00I hope not.
0:43:00 > 0:43:02I'm sure it's all been lovey-dovey.
0:43:02 > 0:43:04Let's take a look inside.
0:43:05 > 0:43:06# Oh
0:43:06 > 0:43:08# Baby, let me hold your hand
0:43:09 > 0:43:12# Baby, let me hold your hand
0:43:12 > 0:43:14# Let me hold you real tight
0:43:14 > 0:43:16# And I'll love you all right
0:43:16 > 0:43:19# Oh, baby, if you hold my hand... #
0:43:19 > 0:43:23Have there been temper tantrums or kisses and cuddles?
0:43:23 > 0:43:25Actually, we got on quite well working together.
0:43:25 > 0:43:28I don't think there's been any arguments at all, this time.
0:43:28 > 0:43:29So, yeah,
0:43:29 > 0:43:33Generally, we discuss what we're planning for each room
0:43:33 > 0:43:37and how we're going to do things and then got on with it, really.
0:43:37 > 0:43:40Yes, some debates about colours, about shades,
0:43:40 > 0:43:44but I think that we've struck the right tone of nothing too bold
0:43:44 > 0:43:46but something slightly different in each room.
0:43:46 > 0:43:49Pam and Gary have created two bedrooms at the front of the
0:43:49 > 0:43:52property and turned the back room next to the kitchen
0:43:52 > 0:43:53into a living room.
0:44:00 > 0:44:02And what about those fireplaces?
0:44:02 > 0:44:05Well, they've been lovingly restored
0:44:05 > 0:44:07and add character to this lovely house.
0:44:07 > 0:44:10And I'm delighted to see that Gary's managed to have
0:44:10 > 0:44:12a night on the tiles after all.
0:44:14 > 0:44:19The couple's clever interior design choices can be seen in the kitchen.
0:44:20 > 0:44:24The selection of feature tiles, splashback,
0:44:24 > 0:44:28chrome tap and modern sink add style to a somewhat small kitchen.
0:44:33 > 0:44:35Well, the kitchen needed a complete refurbishment,
0:44:35 > 0:44:39because it was very dated, so we stripped it all out
0:44:39 > 0:44:42and then we put a new floor in, because the old floor was uneven.
0:44:42 > 0:44:45We also blocked up the door into the garden
0:44:45 > 0:44:49and had it all re-plastered and resurfaced and then chose the units
0:44:49 > 0:44:52because we wanted something that was rather bright but modern as well
0:44:52 > 0:44:56and we put up the kitchen ourselves, apart from putting in the sink
0:44:56 > 0:44:57and the hob.
0:44:57 > 0:44:59I think most people would like it.
0:44:59 > 0:45:01It's bright, it's airy, there's storage space,
0:45:01 > 0:45:04but also there's a washing machine in the corner.
0:45:04 > 0:45:07It's got all the mod cons that people would expect to see in a flat.
0:45:08 > 0:45:10What about that shower room?
0:45:10 > 0:45:12Did Gary and Pam change their minds about the bath
0:45:12 > 0:45:14in this rather cramped space?
0:45:19 > 0:45:21Yes, I'm so glad to see they've managed to get
0:45:21 > 0:45:23a bath in as well as a shower.
0:45:23 > 0:45:26The overall look is very cool and contemporary.
0:45:28 > 0:45:32Well, in the bathroom, originally, there was just a corner shower
0:45:32 > 0:45:36and behind it was a cupboard which had the water system.
0:45:36 > 0:45:41So, we decided to remove those and move the shower backwards,
0:45:41 > 0:45:46which gave a sufficient space, then, to put in a full sized bath.
0:45:46 > 0:45:49Finally, following re-plastering in here,
0:45:49 > 0:45:51I re-tiled it
0:45:51 > 0:45:54and I think it looks rather good.
0:45:55 > 0:45:58The couple are just about on schedule, but have exceeded
0:45:58 > 0:46:01their £15,000 budget
0:46:01 > 0:46:05as they expect to spend 23,000 in total.
0:46:05 > 0:46:08This includes a full electrical rewire,
0:46:08 > 0:46:10new boiler and central heating system,
0:46:10 > 0:46:12new internal doors,
0:46:12 > 0:46:16windows and a new doorway leading to the now landscaped garden.
0:46:16 > 0:46:19Adding their £23,000 spend
0:46:19 > 0:46:23to their £239,000 purchase price,
0:46:23 > 0:46:27gives them a total investment of 262,000.
0:46:29 > 0:46:32I think Gary and Pam have done a great job.
0:46:32 > 0:46:35They have yet to finish, but can be proud of all they've achieved.
0:46:35 > 0:46:38Are there any parts they're particularly pleased with?
0:46:38 > 0:46:40Pam's work on tidying up the fireplaces,
0:46:40 > 0:46:43particularly the one hidden in the bedroom.
0:46:43 > 0:46:45That's come up really well and we were keen to keep it
0:46:45 > 0:46:47if we could tidy it up and paint it up well
0:46:47 > 0:46:50and we had a bit of fun and games with some of the paint,
0:46:50 > 0:46:53but eventually we've got the right mix and the right colours,
0:46:53 > 0:46:54so I'm really pleased
0:46:54 > 0:46:57that we've been able to retain those as original features.
0:47:01 > 0:47:03We invited two local estate agents to give us
0:47:03 > 0:47:05their opinions on this property.
0:47:05 > 0:47:09My first thoughts are, the property's finished pretty well.
0:47:09 > 0:47:12I think the kitchen's very impressive.
0:47:12 > 0:47:15The items used in the kitchen, for example,
0:47:15 > 0:47:19the worktop and general fittings are pretty good.
0:47:20 > 0:47:23Likewise, in the bathroom, as well. They're to a high standard.
0:47:23 > 0:47:26I think the changes to the property are really good.
0:47:26 > 0:47:29They've made good uses of the space, created two double bedrooms,
0:47:29 > 0:47:31given the place lots of light.
0:47:31 > 0:47:33The garden is also a very good size
0:47:33 > 0:47:36and in very good condition, as well.
0:47:36 > 0:47:39So, it seems the experts are impressed.
0:47:39 > 0:47:42How much could the property achieve on the rental market?
0:47:43 > 0:47:47If this property went on the rental market, we would hopefully
0:47:47 > 0:47:51achieve between £1,300 per calendar month
0:47:51 > 0:47:54to £1,400 per calendar month.
0:47:55 > 0:47:58In terms of rental, you'd probably be looking at about
0:47:58 > 0:48:00£1,200 to £1,300 per calendar month.
0:48:01 > 0:48:04Those figures, if achieved, could give Gary and Pam
0:48:04 > 0:48:07a rental yield of between 5% and 6.5%.
0:48:07 > 0:48:10But they would prefer to sell the flat.
0:48:10 > 0:48:14Bearing in mind their £262,000 investment,
0:48:14 > 0:48:17how much do the estate agents reckon it could sell for?
0:48:19 > 0:48:25We would value this property between £290,000-£300,000.
0:48:27 > 0:48:29If the property were to be marketed for sales,
0:48:29 > 0:48:33I would recommend putting a place on the market for £330,000.
0:48:35 > 0:48:37Quite a difference in valuations, but those figures could
0:48:37 > 0:48:41generate a gross profit of between 28,000 and 68,000.
0:48:44 > 0:48:48I have to say, I think 330's over the top.
0:48:50 > 0:48:53- We were thinking probably 290, 300...- 300, yeah.
0:48:53 > 0:48:55..that we thought the value was.
0:48:55 > 0:48:58- So I'm quite pleased... - We'd be happy with that.
0:48:58 > 0:49:00Yeah, very happy with that.
0:49:05 > 0:49:08Gary and Pam have spent their summer months toiling over fitting
0:49:08 > 0:49:10kitchens and tiling bathrooms.
0:49:10 > 0:49:15So, are they happy that their hard work has all paid off?
0:49:16 > 0:49:17Yeah, very pleased about it,
0:49:17 > 0:49:21but I think ready for a holiday, somewhere on the beach.
0:49:21 > 0:49:23Indeed, I haven't had a summer yet.
0:49:27 > 0:49:30We're back in Hanley, Stoke-on-Trent, Staffordshire,
0:49:30 > 0:49:32to see how family business partners,
0:49:32 > 0:49:34Neil and David, got on with that cheap,
0:49:34 > 0:49:38though not particularly cheerful, end of terrace house.
0:49:38 > 0:49:41I thought this property was a big opportunity
0:49:41 > 0:49:44when it sold for only £39,500.
0:49:44 > 0:49:48Of course, the two bedroom house was in need of big love.
0:49:48 > 0:49:51There were plenty of Artex-removal opportunities
0:49:51 > 0:49:54and despite being a decent size,
0:49:54 > 0:49:56the only bathroom was downstairs,
0:49:56 > 0:49:57through three other rooms
0:49:57 > 0:50:00at the very back of the property.
0:50:00 > 0:50:03And outside, there was no real garden space to speak of,
0:50:03 > 0:50:05although that beautiful park across the road
0:50:05 > 0:50:07more than made up for it.
0:50:08 > 0:50:11New and enthusiastic property developers, Neil and David,
0:50:11 > 0:50:15plan to spend around eight weeks and £10,000 renovating the house.
0:50:15 > 0:50:17The only question was, what would they do with it
0:50:17 > 0:50:19when it was finished?
0:50:19 > 0:50:21So, what's the plan for this one?
0:50:21 > 0:50:23Is it to sell it or to rent it out?
0:50:23 > 0:50:25We're hoping to sell it.
0:50:25 > 0:50:27We're looking for an investor to take it over as soon as
0:50:27 > 0:50:30we've finish with it, have it already tenanted,
0:50:30 > 0:50:32so it's a nice investment property.
0:50:32 > 0:50:35But because of the price we've paid for it,
0:50:35 > 0:50:37we can also keep it and rent it out for ourselves.
0:50:37 > 0:50:39So we've got two options.
0:50:40 > 0:50:43We came back 12 weeks later to find out if it's ready to let
0:50:43 > 0:50:45or if it's up for sale.
0:50:48 > 0:50:52The tired old windows are now watertight and sparkling
0:50:52 > 0:50:56and that old front door has been replaced with a brand-new one.
0:50:56 > 0:50:59This house has gone from curbing your enthusiasm
0:50:59 > 0:51:00to curb appeal.
0:51:00 > 0:51:03And that sad, green sitting room is now
0:51:03 > 0:51:05a warm and welcoming living room.
0:51:07 > 0:51:12The second sitting room has also been freshened up and carpeted.
0:51:12 > 0:51:15But there's much more going on than just plaster and paint on the walls.
0:51:15 > 0:51:18Towards the back of the house,
0:51:18 > 0:51:21the kitchen has been made much more user-friendly.
0:51:27 > 0:51:28Right, well, in here,
0:51:28 > 0:51:33the first major job was to take the old units out.
0:51:33 > 0:51:35We then decided to leave reconfigure the kitchen,
0:51:35 > 0:51:38cutting down the old utility room, so we took down the chimney breast
0:51:38 > 0:51:41that was here, partitioned it up,
0:51:41 > 0:51:43put the new utility room in.
0:51:43 > 0:51:45We then came in, left the sink here,
0:51:45 > 0:51:48put the full range of kitchen cupboards in,
0:51:48 > 0:51:51retiled and that was it, basically.
0:51:51 > 0:51:53Yes, I think it all looks pretty good now.
0:51:53 > 0:51:55I couldn't agree more.
0:51:55 > 0:51:58The kitchen is now a much more attractive environment to be in.
0:52:01 > 0:52:04Even though the bathroom is still at the far end of the house,
0:52:04 > 0:52:07it, too, is now a much more inviting space.
0:52:12 > 0:52:15Although the cosmetic changes are obvious,
0:52:15 > 0:52:18David and Neil have also paid close attention
0:52:18 > 0:52:20to the fabric of the building.
0:52:20 > 0:52:24Starting at the beginning, we had new damp-proof course inserted and
0:52:24 > 0:52:26of course we had new windows, new doors,
0:52:26 > 0:52:28all new PVC double glazed.
0:52:29 > 0:52:33And, throughout, those textured walls are a distant memory.
0:52:33 > 0:52:36Effectively, the whole house was covered in Artex,
0:52:36 > 0:52:39so that's walls, ceilings, stairways, bedrooms.
0:52:39 > 0:52:43They'd obviously had a job lot of Artex very cheaply
0:52:43 > 0:52:45when it was done originally.
0:52:45 > 0:52:48Huge problem to take that off.
0:52:48 > 0:52:49Not that I know that much about it,
0:52:49 > 0:52:51because David was responsible for it.
0:52:51 > 0:52:55But it was a question of covering the Artex up and re-plastering,
0:52:55 > 0:52:57so that the walls are smooth.
0:52:57 > 0:53:01We've left it on the ceilings cos if you try and take it down
0:53:01 > 0:53:03from the ceilings you're going to create a bigger problem.
0:53:03 > 0:53:06So we've left that up, but it's been repainted and it looks fine.
0:53:06 > 0:53:10The secret of successful property developing is to do
0:53:10 > 0:53:14what you need to, remembering that if it isn't your own home,
0:53:14 > 0:53:17you don't need to reflect your own personal taste.
0:53:17 > 0:53:21Anyhow, up the now Artex-free stairs, both double bedrooms are
0:53:21 > 0:53:23warm, neutral and welcoming.
0:53:25 > 0:53:30And, outside, David and Neil have just one more surprise.
0:53:30 > 0:53:33Well, when we first came here, the whole garden was a complete mess,
0:53:33 > 0:53:37there was an old kennel there, this was all debris, there was
0:53:37 > 0:53:40bushes overgrown in the whole area,
0:53:40 > 0:53:43and the tree was absolutely massive, it covered
0:53:43 > 0:53:46about five of the neighbours' gardens, so we've trimmed
0:53:46 > 0:53:50that back, we have raised the canopy to try and let in more light,
0:53:50 > 0:53:54we've pushed the shrubs back, and we tidied the area up,
0:53:54 > 0:53:57put one or two new shrubs in, laid some decking,
0:53:57 > 0:54:00so that just brightens the area, and as you can see now it catches
0:54:00 > 0:54:05the sunlight, so, it's a nice little area just to sit and have an
0:54:05 > 0:54:08afternoon cup of tea, or maybe even a glass of wine in the evening.
0:54:13 > 0:54:17From top to tail, both inside and outside, newbie property
0:54:17 > 0:54:21developers, David and Neil, have turned this house into a home.
0:54:21 > 0:54:26They bought it for £39,500, and have spent £14,000 on the
0:54:26 > 0:54:30refurbishment, bringing their total outlay to £53,000.
0:54:37 > 0:54:39But, was it money well spent?
0:54:39 > 0:54:42We asked two local estate agents for their opinions.
0:54:45 > 0:54:49The property has been refurbished to a good standard, it's fresh,
0:54:49 > 0:54:53clean inside, everything's new, and it's ready to move straight into.
0:54:53 > 0:54:56I particularly like the fact that there is a usable outside area,
0:54:56 > 0:55:01which, for this type of property isn't particularly normal, and
0:55:01 > 0:55:03also there's now a good-sized kitchen,
0:55:03 > 0:55:06with a separate utility area.
0:55:06 > 0:55:08I like the way that the kitchen
0:55:08 > 0:55:11and bathroom have both been done to an immaculate standard,
0:55:11 > 0:55:13and I like the way that they have been done to a neutral
0:55:13 > 0:55:16standard, as well, which means it'll appeal to a wide range
0:55:16 > 0:55:19of buyers, which hopefully will help them on the market side of things.
0:55:19 > 0:55:21Speaking of markets,
0:55:21 > 0:55:25what do the local property experts think this place is now worth?
0:55:25 > 0:55:29I would anticipate a resale value in the region of £75,000.
0:55:29 > 0:55:33I'd say achieving sort of £75,000.
0:55:33 > 0:55:36Those valuations would give Neil and David a very healthy
0:55:36 > 0:55:42profit of 21,500, minus the usual taxes and expenses, of course.
0:55:42 > 0:55:46A house just up the road has sold quite recently for a fairly
0:55:46 > 0:55:49similar kind of price, so that's what we were hoping for.
0:55:52 > 0:55:55I would anticipate a rental income
0:55:55 > 0:55:58in the region of £425 per calendar month.
0:55:58 > 0:56:01Optimistically, you'd be looking at £450 per calendar month,
0:56:01 > 0:56:04but I think you'd be looking more in the region of 425, though.
0:56:04 > 0:56:06We're quite happy with that,
0:56:06 > 0:56:08our research showed it was going to be something similar,
0:56:08 > 0:56:10and we'd based all of our calculations on that,
0:56:10 > 0:56:12so yes, we're quite pleased.
0:56:12 > 0:56:15Those rental figures would give the team
0:56:15 > 0:56:18a very healthy yield of between eight and 10%.
0:56:18 > 0:56:21Their keen eye for detail and figures mean these fledgling
0:56:21 > 0:56:25property developers are well on their way to success.
0:56:26 > 0:56:30But, have this canny pair decided to keep the property, or sell it on?
0:56:31 > 0:56:33We like the house, the area, it should rent out easily,
0:56:33 > 0:56:35so we want to keep it.
0:56:35 > 0:56:37And, brimming with confidence,
0:56:37 > 0:56:40they're off on their next development already.
0:56:40 > 0:56:43We bought another property fairly recently,
0:56:43 > 0:56:46that completed only yesterday, so we will be starting to work
0:56:46 > 0:56:49on that quite soon, and yes, we'll be back at auction, next month.
0:56:52 > 0:56:55Well, that's it for today's show, we'll have more news
0:56:55 > 0:56:58from the auction rooms up and down the country for you next time.
0:56:58 > 0:57:02- So, make sure you join us then. - Goodbye for now.- Goodbye.
0:57:21 > 0:57:25Subtitles by Red Bee Media Ltd