0:00:02 > 0:00:04Do you want to buy property at an auction
0:00:04 > 0:00:07- but don't know where to start? - Perhaps we can show you
0:00:07 > 0:00:10- some tricks of the trade.- Today we're going to be following buyers
0:00:10 > 0:00:12who bought their homes under the hammer.
0:00:37 > 0:00:40Auction houses aren't intimidating places.
0:00:40 > 0:00:42Anyone can buy there. All you need is the money.
0:00:42 > 0:00:46Yes, today we talk to some intrepid buyers who've taken the plunge.
0:00:46 > 0:00:49Will they sink or swim? Here's what they bought.
0:00:50 > 0:00:52'In sunny Torquay in Devon,
0:00:52 > 0:00:57'it might be a bit dated and lacking in a few areas, but...'
0:00:57 > 0:01:00I like this house, I do. It's got a really nice feel to it.
0:01:00 > 0:01:07'Whereas on a trip to Ramsgate, Kent, I'm less than enamoured with the layout in this house.'
0:01:07 > 0:01:11Oh, no! This is the bathroom!
0:01:11 > 0:01:14'And I'm remaining positive when I check the lie of the land
0:01:14 > 0:01:19'at a site in Stapleford, Nottinghamshire.'
0:01:19 > 0:01:21It's flat, which is always a good start.
0:01:22 > 0:01:24'All these properties have been sold at auctions
0:01:24 > 0:01:30- 'and we'll find out who bought them and what they paid when they went under the hammer.'- Congratulations.
0:01:33 > 0:01:37'Today I'm on the Riviera. The English Riviera, of course,
0:01:37 > 0:01:41'in Torquay, South Devon.
0:01:41 > 0:01:44'The area gets its glamorous name for a reason.
0:01:44 > 0:01:48'It boasts glorious beaches, stunning seascapes
0:01:48 > 0:01:52'and a very mild climate. It's even got palm trees!
0:01:53 > 0:01:56'The property we're here to see is a mile away from the town centre
0:01:56 > 0:01:59'in an area known as Tor.'
0:02:01 > 0:02:05Architecture from the 1960s and 1970s
0:02:05 > 0:02:09sometimes gets a bit of a bad rap and it's not always justified,
0:02:09 > 0:02:13cos on occasion, it just works, and I think that's a case in point today
0:02:13 > 0:02:15because this is the property I'm here to see.
0:02:15 > 0:02:18It's built on this hill, and as you can see from the front,
0:02:18 > 0:02:21lots and lots of glass to make the most of the views.
0:02:21 > 0:02:26The guide price was 115,000 to 135,000 quid, three bedrooms, let's take a look.
0:02:26 > 0:02:29'Geometric is perhaps the word for this type of design,
0:02:29 > 0:02:32'although some might say boxy.'
0:02:32 > 0:02:35# I guess it's just because you're so square
0:02:35 > 0:02:37# Baby, I don't care #
0:02:37 > 0:02:39'But it's a good, practical design
0:02:39 > 0:02:42'and gets the most from the land it sits on.
0:02:42 > 0:02:45'There's off-road parking and an integrated garage,
0:02:45 > 0:02:49'which could possibly be turned into a living space.
0:02:49 > 0:02:51'It can be accessed from the ground-floor hallway
0:02:51 > 0:02:55'and then the accommodation actually starts on the first floor.'
0:02:55 > 0:02:58Then up those stairs into this room here,
0:02:58 > 0:03:00your lovely, big, open-plan living area.
0:03:00 > 0:03:06Big window at the end. I don't like to see the glass in those lower panels.
0:03:06 > 0:03:11To my mind, a bit of a safety hazard for sure, so do something about that.
0:03:11 > 0:03:15Also feels a little bit 1970s with the interesting wallpaper.
0:03:15 > 0:03:20But it's a nice-size space. And, you know, think about stripping the floorboards back
0:03:20 > 0:03:22and it would be a really lovely room.
0:03:22 > 0:03:26Maybe you could even bring in a sense of the seaside in there
0:03:26 > 0:03:28with a bit of clever decoration.
0:03:28 > 0:03:32Then a room which is a problem. This is supposed to be the kitchen and there isn't one.
0:03:32 > 0:03:36Why is that a problem? Well, when it comes to getting a mortgage,
0:03:36 > 0:03:39most mortgage companies insist that you have a working kitchen and bathroom,
0:03:39 > 0:03:43so this means that currently this property is pretty much unmortgageable.
0:03:43 > 0:03:47What some people do is put in a temporary kitchen to enable them to get a mortgage
0:03:47 > 0:03:52and then rip it out afterwards. That is something you could do, but it's all added money.
0:03:52 > 0:03:55But it is a blank canvas at the moment.
0:03:55 > 0:03:58Again, lots of light coming in here, views out onto the rear garden.
0:03:58 > 0:04:02Maybe some bi-fold doors in here to open that whole thing out.
0:04:02 > 0:04:07Can you imagine that, big open gap here looking out into the garden? That would be lovely.
0:04:07 > 0:04:09I like this house, I do. It's got a really nice feel to it.
0:04:13 > 0:04:15'This whole place is a bit of a building site
0:04:15 > 0:04:18'with rooms taken back to the shell.
0:04:18 > 0:04:20'But it gives a good idea of what space is here
0:04:20 > 0:04:23'and a real opportunity to change things around.
0:04:23 > 0:04:27'Upstairs are the three bedrooms, one small bedroom at the front,
0:04:27 > 0:04:30'a decent-size double beside it
0:04:30 > 0:04:32'and then there's a third large one at the back.
0:04:32 > 0:04:35'They all need a complete overhaul, including the electrics,
0:04:35 > 0:04:38'heating and plastering. Oh, it's the lot.
0:04:38 > 0:04:40'Then there's the family bathroom,
0:04:40 > 0:04:45'which seems to have had the utilities dropped in rather than plumbed in.
0:04:45 > 0:04:49'It also comes with a handy hole in the floor for talking to people below.
0:04:50 > 0:04:53'Hm. Some work needed here, I think.'
0:04:54 > 0:04:57So out to the rear of the property and a really nice surprise
0:04:57 > 0:04:59because we are in quite a hilly part of Torquay here
0:04:59 > 0:05:03and some of the houses do have very steeply-inclined gardens
0:05:03 > 0:05:06which makes them quite difficult to maintain.
0:05:06 > 0:05:08This one, though, you've got a nice bit of patio
0:05:08 > 0:05:12and then a garden which isn't too steep, so usable space,
0:05:12 > 0:05:15bit of a sun trap and an added bonus.
0:05:15 > 0:05:17# When you think I've loved you
0:05:17 > 0:05:19# All I can
0:05:19 > 0:05:23# I'm gonna love you a little bit more #
0:05:23 > 0:05:26'Well, I think this garden's got great potential,
0:05:26 > 0:05:31'though it'll need a fair amount of effort to turn it into an attractive space.
0:05:31 > 0:05:37'But overall, I really like this place. Despite its current state, it's got a lovely feel to it.
0:05:41 > 0:05:46'What does the auctioneer who sold it make of what's on offer here?'
0:05:52 > 0:05:55Complete shell of a property. It needs everything doing to it,
0:05:55 > 0:05:58installation of a kitchen, a new bathroom would be required,
0:05:58 > 0:06:01and modernisation and updating throughout.
0:06:01 > 0:06:05The integral garage, it's quite common in this part to actually integrate that into accommodation
0:06:05 > 0:06:10and make that into a further bedroom or utility area, so that's something I would consider.
0:06:10 > 0:06:13'Undoubtedly, the house has plenty of room for improvement.
0:06:13 > 0:06:18'But it was guided at £115,000 to £135,000.
0:06:18 > 0:06:23'So would it be worth it on either the resale or rental markets?'
0:06:23 > 0:06:28Once refurbished, it should be worth somewhere in the region of £170,000.
0:06:28 > 0:06:33For rental, the property should fetch somewhere in the region of £600 to £650 per calendar month.
0:06:33 > 0:06:38'To me, those figures definitely favour rentals as the way to maximise returns here.
0:06:38 > 0:06:41'But done up, this house wouldn't just make a good investment,
0:06:41 > 0:06:44'it could be a lovely home.'
0:06:46 > 0:06:49Well, it's a good house in a very pleasant location,
0:06:49 > 0:06:53not far from the sea, close to Torquay town centre and just a nice spot.
0:06:53 > 0:06:58And not too complicated a renovation for whoever decided to take this one on.
0:06:58 > 0:07:02Yes, bear in mind that it hasn't got a kitchen and the issues that throws up,
0:07:02 > 0:07:04but apart from that, a good one to go for.
0:07:04 > 0:07:06Let's see who agreed when it went under the hammer.
0:07:09 > 0:07:13Lot number 123. So we're down to sunny Torquay,
0:07:13 > 0:07:16three-bedroom mid-terrace, needs a bit of cheering up,
0:07:16 > 0:07:19refurbishment, modernisation. OK, 120 I'll look for.
0:07:19 > 0:07:23120 anywhere? At 120. 110.
0:07:23 > 0:07:27Two hands at 110. I'll take you on the left, sir. At 112.
0:07:27 > 0:07:32At 112. 114. 116. 116.
0:07:32 > 0:07:34I'll take one, 117.
0:07:34 > 0:07:37117 against you. 118. You're in at 118,000.
0:07:37 > 0:07:40119. 119.
0:07:40 > 0:07:42At 119,000 for the first time.
0:07:42 > 0:07:46Serious stuff. At 119,000 for the second time.
0:07:46 > 0:07:49At 199,000, third and final time.
0:07:49 > 0:07:52Selling at 119 to your maiden bid. Congratulations, sir.
0:07:52 > 0:07:56'So, for £119,000,
0:07:56 > 0:08:02'the successful bidder, hidden behind the pillar, was David, who's based in the South West.
0:08:02 > 0:08:07'He has previously owned and run hotels in the area as well as a coach company
0:08:07 > 0:08:11'and while he's dabbled in property developing in the past,
0:08:11 > 0:08:13'he's now looking at it as a full-time venture.
0:08:13 > 0:08:16'I met him at the house to find out more.'
0:08:16 > 0:08:19- David, good to meet you. - Pleased to meet you.
0:08:19 > 0:08:22- Congratulations. - Thank you very much.
0:08:22 > 0:08:25- I think you've done quite well, actually.- So do I.
0:08:25 > 0:08:29So, apart from the potential gains, tell me why you wanted to buy this place.
0:08:29 > 0:08:32Rentals. That's the route I'm going for.
0:08:32 > 0:08:36- What do you mean by that?- Well, I've come out of the hotel business
0:08:36 > 0:08:38over the last 12, 18 months
0:08:38 > 0:08:43and now I think, for the rest of my life, building and rentals is the up and coming thing.
0:08:43 > 0:08:45OK. What were you doing in the hotel trade?
0:08:45 > 0:08:47Erm, that's where I started my life.
0:08:47 > 0:08:50From the age of 13, I've been involved in it.
0:08:50 > 0:08:53Then myself and my ex-wife bought hotels
0:08:53 > 0:08:55and then we just expanded
0:08:55 > 0:08:59and now I'm divorced, I've got to do something with my life.
0:08:59 > 0:09:01- So a life change in lots of ways. - Yeah.
0:09:01 > 0:09:04- But you owned a hotel?- Four.- Four?
0:09:04 > 0:09:07- Blimey!- Newquay, Torquay, Bournemouth and the Isle of Wight.
0:09:07 > 0:09:12- Right. What kind of hotels? - All over 130 people, over 75 beds.
0:09:12 > 0:09:16And we owned a very large coach company, as well.
0:09:16 > 0:09:19- Gosh, you were kept busy, then. - Very.
0:09:19 > 0:09:24# Hotel
0:09:24 > 0:09:27'David's clearly a man who likes to keep busy.
0:09:27 > 0:09:30'He doesn't do things by half.
0:09:30 > 0:09:34'He's already bought 13 other properties in the last year.'
0:09:34 > 0:09:39- So why this particular house? - Three bedrooms, lovely area.
0:09:39 > 0:09:43The space, it's got plenty of space, and a garden.
0:09:43 > 0:09:46- So you'd seen it, then, had you? - Yes.- You'd read the legal pack?
0:09:46 > 0:09:49- No.- Oh, come on!
0:09:49 > 0:09:52- I've read enough legal packs in my life... - Yeah, but they're all different!
0:09:52 > 0:09:55- But there isn't a risk! - What do you mean?
0:09:55 > 0:09:58- It's a no-brainer! - No, not necessarily! It could say all sorts of things!
0:09:58 > 0:10:01No, it was all right. It was always going to be all right.
0:10:01 > 0:10:05It's not a major risk and it's ended up as a good deal.
0:10:05 > 0:10:08- Did you take such risks when you were running your hotels?- Yes!
0:10:08 > 0:10:13My solicitor's always told me not to buy things or not to do things.
0:10:13 > 0:10:16But I always did. And I always came out right.
0:10:16 > 0:10:22'Well, it does look as though David's emerged unscathed from this purchase,
0:10:22 > 0:10:25'but I would always recommend you read the legal pack,
0:10:25 > 0:10:30'otherwise you really don't know what kind of problems you could be letting yourself in for.
0:10:30 > 0:10:36'So, having added property 14 to his portfolio, what's David's plan here?'
0:10:37 > 0:10:42Well, as there is no kitchen, it's a new kitchen, so it's a blank canvas.
0:10:42 > 0:10:45The bathroom, as you will see, is sat on the floor,
0:10:45 > 0:10:50so the bathroom will be just completely refurbished top to bottom, tiled, everything.
0:10:50 > 0:10:54The whole house will be completely rewired, re-plumbed, new boiler,
0:10:54 > 0:10:59redecorated, made look tidy, made look good, garden, and that'll be it.
0:10:59 > 0:11:01So what's the budget?
0:11:01 > 0:11:04The budget was originally £130,000 done.
0:11:04 > 0:11:09So as the house came in at 119, there's £11,000 there.
0:11:09 > 0:11:13- So who does the work?- I've had a group of builders around me
0:11:13 > 0:11:16for many, many years.
0:11:16 > 0:11:21I've got them all turning up, starting this afternoon.
0:11:21 > 0:11:28- Oh, really?- We're hoping to be in and out inside three weeks.
0:11:28 > 0:11:32- Three weeks?- Yeah.- Kitchen, bathroom, total re...
0:11:32 > 0:11:36Well, we have another project in Brixton, two more houses in Brixton,
0:11:36 > 0:11:38doing an even bigger job than this
0:11:38 > 0:11:42that will start in three week and one day.
0:11:42 > 0:11:44MARTIN GULPS
0:11:44 > 0:11:48And in terms of ambition for the portfolio,
0:11:48 > 0:11:52- how many properties would you like to have? - Well, this is number 14, I think.
0:11:52 > 0:11:55- Right.- I'm not trying to brag,
0:11:55 > 0:11:58but I do like to think that by the end of next year,
0:11:58 > 0:12:00- it'll be up to 30-plus.- Really? - And then I'll stop at that.
0:12:00 > 0:12:04- And you obviously enjoy it. - Oh, I love it. I mean, it's...
0:12:04 > 0:12:08It's like, you start with a blank canvas and then afterwards you think, "Yeah."
0:12:08 > 0:12:11Doing it this way, it's a very quick thing.
0:12:11 > 0:12:16Doing it on a hotel, it could take five years, so you never get...
0:12:16 > 0:12:20This one's a quick fix, we'll get the buzz of making something look really good.
0:12:20 > 0:12:23- Listen, congratulations. Good luck with it.- Thank you.
0:12:23 > 0:12:26- Look forward to seeing how you get on.- Thank you.
0:12:27 > 0:12:30Well, despite breaking a few cardinal rules,
0:12:30 > 0:12:34it looks like risk-taker Dave will come out on top again this time.
0:12:34 > 0:12:40He's got a good property here. However, that £10,000 to £11,000 budget?
0:12:40 > 0:12:45In three weeks? It could be tight. You can find out how he gets on later in the show.
0:12:49 > 0:12:52'I'm on the Kent coast today in Ramsgate.'
0:12:56 > 0:13:00Ramsgate started as a small fishing and farming hamlet.
0:13:00 > 0:13:04The town now has one of the largest marinas on the English south coast.
0:13:04 > 0:13:06And although fishing still goes on,
0:13:06 > 0:13:09tourism is now the dominant local industry.
0:13:09 > 0:13:14The property I'm here to see is just over half a mile away.
0:13:14 > 0:13:16'So with the marina just a short walk away,
0:13:16 > 0:13:19'a good range of shops, plus road and rail links,
0:13:19 > 0:13:21'the property is in a pretty decent location.
0:13:21 > 0:13:25'But the lack of parking and double yellow lines right outside
0:13:25 > 0:13:27'might put some buyers off.'
0:13:29 > 0:13:31Well, here it is, a terraced house.
0:13:31 > 0:13:35Now, it may not seem that big on the outside,
0:13:35 > 0:13:40but inside there's apparently four bedrooms arranged over four floors.
0:13:40 > 0:13:44The guide price at auction was £75,000 to £80,000.
0:13:44 > 0:13:47Let's go inside and take a closer look.
0:13:48 > 0:13:52'I'm going in at first-floor level because this house goes down
0:13:52 > 0:13:54'as well as up.'
0:13:54 > 0:13:58So, what do we have on the inside? Well, lots of shades of brown.
0:13:58 > 0:14:04It really does need a modern update. It's incredibly tired.
0:14:04 > 0:14:08Bit of a dated fireplace. No central heating.
0:14:08 > 0:14:10The floorboards are all a bit rickety.
0:14:10 > 0:14:13Hm. And that's just the beginning.
0:14:14 > 0:14:16'And it's the beginning of a rather odd layout
0:14:16 > 0:14:19'with the back rooms reached by going along a corridor
0:14:19 > 0:14:22'then stepping a few steps down.'
0:14:23 > 0:14:27So this is the second reception room at the back of the property.
0:14:27 > 0:14:31Fairly spacious with quite a small kitchen.
0:14:31 > 0:14:34Now, this is just a little extension at the back.
0:14:34 > 0:14:37I think I'd be inclined to think about taking this out
0:14:37 > 0:14:40and opening this space up to have one large kitchen-diner.
0:14:40 > 0:14:45Oh, no! This is the bathroom! There's no toilet.
0:14:45 > 0:14:49If you can't fit it in upstairs,
0:14:49 > 0:14:52I'm just thinking, it might be a possibility to put a wall here,
0:14:52 > 0:14:59move the door along and potentially have an entrance into the bathroom round there on the stairs
0:14:59 > 0:15:02so you don't have to come through the kitchen to get to the bathroom.
0:15:02 > 0:15:04I think that's what I would try and do.
0:15:04 > 0:15:09'Hm, it's not ideal, but it might be the best compromise.
0:15:09 > 0:15:12'So onwards and upwards.
0:15:12 > 0:15:15'And on a half-landing is that missing toilet.
0:15:15 > 0:15:19'Further up on what I'd say is the second floor
0:15:19 > 0:15:22'are two decent-sized double bedrooms.
0:15:23 > 0:15:25'Then it's a climb to the top...'
0:15:25 > 0:15:27# Be running up that hill
0:15:27 > 0:15:30# Be running up that building
0:15:31 > 0:15:34'..where there are two smaller bedrooms.
0:15:38 > 0:15:42'Then finally a zoom back down to earth.'
0:15:43 > 0:15:47Yes, this house is on many levels.
0:15:47 > 0:15:50Now, this is the basement and in most cases,
0:15:50 > 0:15:53basements are dark, damp and stinky.
0:15:53 > 0:15:56And, yes, this totally fits all three.
0:15:56 > 0:16:00You can even see through here the damp all coming in.
0:16:00 > 0:16:05But the good news with this room is that it has its own independent access.
0:16:05 > 0:16:08There's a doorway there so you could think about renting this out
0:16:08 > 0:16:12to an independent person, they come down the stairs and through this little door here.
0:16:12 > 0:16:15You've got quite a good space, although a bit of a low ceiling.
0:16:15 > 0:16:20And it certainly needs a bit of decoration. I don't actually know what that says,
0:16:20 > 0:16:25but I think it's some sort of Egyptian hieroglyphics. I'll leave that with you.
0:16:25 > 0:16:28# Walk like a Egyptian #
0:16:33 > 0:16:36'What to make of the signs? Are they good or bad?
0:16:36 > 0:16:40'I'm not sure! Although there's certainly a lot of property
0:16:40 > 0:16:44'for what was a £75,000 to £80,000 guide price.
0:16:44 > 0:16:47'But it's like a series of rooms stacked one on top of another
0:16:47 > 0:16:51'and there are an awful lot of stairs.
0:16:53 > 0:16:56'But is there perhaps a hidden gem to be uncovered here?
0:16:56 > 0:17:00'What does a local estate agent make of this four-storey terraced house?'
0:17:03 > 0:17:05With this property, I think it really depends on
0:17:05 > 0:17:08what you're looking to do with it. If you're looking to rent it out
0:17:08 > 0:17:11then I wouldn't really change too much of the layout,
0:17:11 > 0:17:14I'd just modernise it. If you're looking to sell it on,
0:17:14 > 0:17:17then perhaps you'd want to change the layout considerably,
0:17:17 > 0:17:20consider moving the bathroom upstairs,
0:17:20 > 0:17:22maybe just changing the living room areas,
0:17:22 > 0:17:24so there would be quite a lot to do.
0:17:24 > 0:17:27'Whether to prepare it for the rental market or sell on
0:17:27 > 0:17:31'will depend a lot on the potential returns.'
0:17:31 > 0:17:34Very popular to rent and I would be expecting to achieve
0:17:34 > 0:17:37£650 per calendar month.
0:17:37 > 0:17:41With this property refurbished, we would be looking to put it on the market
0:17:41 > 0:17:43at around about £130,000,
0:17:43 > 0:17:47looking to achieve around about £125,000.
0:17:47 > 0:17:51'To me, those figures suggest get it as a buy-to-let
0:17:51 > 0:17:53'and you could be onto a winner.'
0:17:54 > 0:17:57Well, this terrace may be tired and rundown
0:17:57 > 0:18:00but it does offer a lot of space.
0:18:00 > 0:18:04Four bedrooms and four floors, to be precise.
0:18:04 > 0:18:06So who was tempted by this particular property?
0:18:06 > 0:18:10Let's find out who bid and then bought it at auction.
0:18:12 > 0:18:15Moving straight on, then, without any delay to lot 67.
0:18:15 > 0:18:19Four-storey house. It says it needs some improvement.
0:18:19 > 0:18:21Does somebody want to start me at 75,000? Jump in at 75?
0:18:21 > 0:18:2575 sitting. 75. And 80. At 80.
0:18:25 > 0:18:27And 5. 85.
0:18:27 > 0:18:2985 with you standing.
0:18:29 > 0:18:3290. 90 I have. 91.
0:18:32 > 0:18:3492. 92.
0:18:34 > 0:18:37And 3? 93. And 4?
0:18:37 > 0:18:4194. 94,000. And 5. 95.
0:18:41 > 0:18:45And 6. And 7. And 8.
0:18:45 > 0:18:48Can I get 100? Get there first? 99?
0:18:48 > 0:18:5099? Shaking his head.
0:18:50 > 0:18:54At £98,000 I'm bid, then. 100 I'm looking for.
0:18:54 > 0:18:56Are we all done at £98,000?
0:18:56 > 0:19:00100 I've got. It's back with you, sir, sitting behind.
0:19:00 > 0:19:03If we're all done at £100,000, I'm going to be selling.
0:19:03 > 0:19:05For the first time at £100,000.
0:19:05 > 0:19:08£100,000 for the second time.
0:19:08 > 0:19:11If you're sure you're all done, for the third and final time at 100,000
0:19:11 > 0:19:15- sitting down on the left. - HAMMER BANGS - It's yours, sir, for 100,000.
0:19:16 > 0:19:20'So, for £100,000, 20 grand over the upper guide price,
0:19:20 > 0:19:24'the successful bidder was London-based Roy.
0:19:24 > 0:19:27'He bought the Ramsgate house along with his wife, Lynette.
0:19:27 > 0:19:31'Roy's an electrician by trade, while Lynette's a nurse.
0:19:31 > 0:19:34'I met them back at the property to find out more.'
0:19:39 > 0:19:43Roy and Lynette, lovely to meet you. Congratulations.
0:19:43 > 0:19:46So what spurred you on to want to buy this on auction day, Roy?
0:19:46 > 0:19:50We've looked at a few largish properties.
0:19:50 > 0:19:54This one seemed to suit the bill.
0:19:54 > 0:19:57Lynette, did you know Roy was going to buy this that day?
0:19:57 > 0:20:00No. No. I hadn't even seen this one,
0:20:00 > 0:20:02cos he went off and saw some by himself,
0:20:02 > 0:20:05and then he went off on the day and I just said,
0:20:05 > 0:20:09"It's up to you, if you see something, go for it." I trust his judgement. So he did.
0:20:09 > 0:20:13- Now you have seen it, are you happy? - Yes, I think so.
0:20:13 > 0:20:17It's certainly unusual. The layout's unusual, to say the least.
0:20:17 > 0:20:22But I think it'll be good. There's lots to do and it's going to be a good project to get our teeth into.
0:20:22 > 0:20:26And why have you done this? Is it to rent out? Is it to live in yourselves?
0:20:26 > 0:20:28It's to rent out.
0:20:28 > 0:20:32'They plan to keep this tall, skinny property as one house.
0:20:32 > 0:20:36'They're going to renovate it completely, including, I'm glad to say,
0:20:36 > 0:20:41'changing the entrance to the bathroom and adding a bathroom/toilet.'
0:20:41 > 0:20:44Have you ever done anything like this before?
0:20:44 > 0:20:50Yes, we've got a place across the road from us we done up and that was rented out.
0:20:50 > 0:20:54But we said it was going to take a few weeks to do it up
0:20:54 > 0:20:56and it took us about three months. LUCY LAUGHS
0:20:56 > 0:21:00So, OK, how long do you think it's going to take you to renovate this place?
0:21:00 > 0:21:02I'm guessing about three to four months.
0:21:02 > 0:21:06And are you two going to be hands-on and doing a lot of the work?
0:21:06 > 0:21:08- Yes.- Yes.- Have you got any helpers?
0:21:08 > 0:21:11Yes. Our eldest son is a gas fitter and plumber
0:21:11 > 0:21:14so he's going to come down and give us a hand.
0:21:14 > 0:21:18And my eldest daughter's already volunteered our younger grandson.
0:21:18 > 0:21:21So you've got lots of friends and family, that's fantastic news.
0:21:21 > 0:21:23You want to get it done in three to four months.
0:21:23 > 0:21:26The big question here is the budget.
0:21:26 > 0:21:30Yes. I think about £15,000.
0:21:30 > 0:21:32- I think.- Could be more.
0:21:32 > 0:21:35When he said £15,000, you sort of shook your head.
0:21:35 > 0:21:39It'll be at least 20. Cos the biggest charges will be labour,
0:21:39 > 0:21:41so that's where our greatest saving will come,
0:21:41 > 0:21:43but I think you're looking probably at least 20.
0:21:44 > 0:21:48'Well, I do agree with Lynette. £15,000 doesn't seem much
0:21:48 > 0:21:50'when you take in the size of the property,
0:21:50 > 0:21:52'even given the amount of family help they'll get.
0:21:52 > 0:21:56'It seems to me that although this might be a joint venture,
0:21:56 > 0:21:59'Lynette is really the project manager.'
0:22:00 > 0:22:03- What's Lynette like to work with? - She's a taskmaster.
0:22:03 > 0:22:05SHE LAUGHS
0:22:05 > 0:22:08Not at all. Not at all. As long as it's tidy.
0:22:08 > 0:22:12- Is he not allowed to cut corners? Has he got to do it all properly? - Hopefully.
0:22:12 > 0:22:16I think he'll do it properly. He's very good at knocking things down and rebuilding things,
0:22:16 > 0:22:20but it's the finish that I have to keep him up to standard with.
0:22:20 > 0:22:23You can't just quickly do it, you've got to do it properly.
0:22:23 > 0:22:25I can't wait to hear the grand total
0:22:25 > 0:22:28and how much you do actually spend on it.
0:22:28 > 0:22:31- Yeah. - I've already got a folder and I've started putting the receipts in.
0:22:31 > 0:22:33Good luck with the project. Take care. Thank you.
0:22:33 > 0:22:35- Nice to meet you. - Thank you, Lucy.- Well done.
0:22:35 > 0:22:39Well, Roy and Lynette sound like they've got it all sorted.
0:22:39 > 0:22:42They're planning to rope in the kids and the grandkids
0:22:42 > 0:22:44to help with the refurbishment work.
0:22:44 > 0:22:47And then they can rent it out.
0:22:47 > 0:22:50But will this family project go smoothly
0:22:50 > 0:22:53or will there be a few problems along the way?
0:22:53 > 0:22:56You can find out later on in the programme.
0:22:57 > 0:23:00'Coming up, this plot of land in Stapleford, Nottinghamshire
0:23:00 > 0:23:02'doesn't just offer an exciting opportunity.'
0:23:02 > 0:23:06If you keep a tight rein on the budget, there's money to be made here, too.
0:23:08 > 0:23:11'Back in the coastal port of Ramsgate, Kent,
0:23:11 > 0:23:15'has Lynette found her inner artist?'
0:23:15 > 0:23:17I love painting.
0:23:19 > 0:23:21'But first, in Torquay, Devon,
0:23:21 > 0:23:24'we find out what cost David dearly.'
0:23:24 > 0:23:26The budget went clean out of the window.
0:23:30 > 0:23:35'It was on the outskirts of Torquay in Devon
0:23:35 > 0:23:39'that we came across this three-storey, three-bedroom mid-terraced townhouse.
0:23:39 > 0:23:45'It lacked a few essential fittings, such as a kitchen and properly installed bathroom suite,
0:23:45 > 0:23:49'plus there were signs throughout of work started but not finished.
0:23:49 > 0:23:53'But it was light and airy and came with off-street parking
0:23:53 > 0:23:55'and an integral garage.
0:23:56 > 0:24:00'There were indications that, buried beneath the undergrowth, there was actually a good-size garden,
0:24:00 > 0:24:05'so it looked as though it might make a promising purchase.
0:24:06 > 0:24:11'It was snapped up for £119,000 by ex-hotelier turned developer David
0:24:11 > 0:24:16'as property number 14 in his ever-growing portfolio.
0:24:17 > 0:24:20'He didn't plan to hang around on this one.'
0:24:21 > 0:24:25We're hoping to be in and out inside three weeks.
0:24:25 > 0:24:30- Three weeks?- Yeah. - Kitchen, bathroom, total re...
0:24:30 > 0:24:32Well, we have another project in Brixton,
0:24:32 > 0:24:36which is two more houses in Brixton, doing an even bigger job than this,
0:24:36 > 0:24:41that will start in three weeks and one day. MARTIN GULPS
0:24:43 > 0:24:47'So, the race was on to get this house ready for the rental market.
0:24:47 > 0:24:50'Armed with an £11,000 budget,
0:24:50 > 0:24:53'his team of builders set about the task of refurbishing it.
0:24:56 > 0:25:00'Now, just five weeks later, we're back with David
0:25:00 > 0:25:03'to see if his team of builders beat the clock.
0:25:06 > 0:25:10'Well, there's a much improved front drive
0:25:10 > 0:25:12'with paving slabs jet-wash cleaned.
0:25:12 > 0:25:15'But what about inside?
0:25:15 > 0:25:18'Well, the entrance hall is now redecorated
0:25:18 > 0:25:21'and the open-tread stairs have been re-carpeted.
0:25:23 > 0:25:26'The lounge is a great improvement
0:25:26 > 0:25:28'and I'm glad to see the low-level glass panes have gone.
0:25:28 > 0:25:31'There's now central heating throughout.
0:25:33 > 0:25:36'In the kitchen, or should I say kitchen space,
0:25:36 > 0:25:39'well, that's now actually got a fully-fitted kitchen
0:25:39 > 0:25:42'with integrated appliances. So far, so good.'
0:25:45 > 0:25:50On day one, we started by trying to strip the wallpaper,
0:25:50 > 0:25:53which was pretty simple, but that's not as simple as it sounds.
0:25:53 > 0:25:58All the plaster in the whole house blew off the walls.
0:25:58 > 0:26:01So it meant that every wall in this house
0:26:01 > 0:26:04had to be stripped and then replastered.
0:26:06 > 0:26:09'That wasn't what David was hoping for,
0:26:09 > 0:26:13'but it doesn't seem to have held up his team much, judging by upstairs.
0:26:16 > 0:26:19'With all three bedrooms undergoing complete refurbishment.
0:26:19 > 0:26:24'That 70s decor is now definitely a thing of the past.
0:26:25 > 0:26:29'And as for that bathroom where nothing was plumbed in,
0:26:29 > 0:26:32'now it has a functioning suite and is tiled throughout.
0:26:32 > 0:26:37'So, after the difficult start, inside seems to have progressed well.
0:26:37 > 0:26:39'But then there was the garden.'
0:26:45 > 0:26:47# Wild thing
0:26:47 > 0:26:50'It's gone from wildly overgrown
0:26:50 > 0:26:52'to much more manageable now.'
0:26:52 > 0:26:55# Wild thing, I think I love you
0:26:56 > 0:27:00# But I wanna know for sure #
0:27:00 > 0:27:02The garden was a nightmare.
0:27:02 > 0:27:06From the very beginning, you couldn't get past the bottom of the steps.
0:27:06 > 0:27:11The plan was that at the end of the first day, we'd get most of it off. That didn't happen.
0:27:11 > 0:27:14We didn't even get to the first tier. Then the next few days,
0:27:14 > 0:27:16we left two people on it.
0:27:16 > 0:27:20Eventually, decided to go the next level, which was the decking
0:27:20 > 0:27:24and then the stone chips on the next tier and then turf on the top tier.
0:27:24 > 0:27:27But there is still another 12 foot past the steps,
0:27:27 > 0:27:31where the steps are at the top of the garden that one day,
0:27:31 > 0:27:34when I've got a lorry and a digger driving past, I will have it cleared.
0:27:34 > 0:27:37'The garden may have taken some taming,
0:27:37 > 0:27:39'but it was certainly worth it.
0:27:39 > 0:27:41'It gives the place that extra wow factor.
0:27:41 > 0:27:44'But with all those unforeseen problems,
0:27:44 > 0:27:47'surely the three-week timescale bit the dust.'
0:27:47 > 0:27:51We had to be at the next project by three weeks exactly
0:27:51 > 0:27:53and three weeks exactly it was.
0:27:53 > 0:27:56We lost time with all the plastering and we lost time with the garden,
0:27:56 > 0:28:01so it was still within and everybody was on the next job on the day that was expected.
0:28:01 > 0:28:04They did work 12-hour days and they did work seven days a week.
0:28:04 > 0:28:11But they had three days off rest and recuperation and a weekend in Newquay after it.
0:28:11 > 0:28:13And then they were back on the Monday morning to the next job.
0:28:13 > 0:28:16'That's pretty impressive.
0:28:16 > 0:28:19'David clearly has a dedicated workforce.
0:28:19 > 0:28:22'But there were surely some more man hours here and higher costs
0:28:22 > 0:28:26'than he allowed for in his £11,000 budget.'
0:28:27 > 0:28:30The budget went clean out of the window, as you can imagine.
0:28:30 > 0:28:33There is change from £19,000, but not a lot.
0:28:33 > 0:28:35A big lump of that was the garden
0:28:35 > 0:28:39and everything that's been done has now been done to last.
0:28:39 > 0:28:44There isn't anything in here that's been just papered over the cracks, it's properly done.
0:28:46 > 0:28:51'A £19,000 spend on top of his £119,000 purchase price
0:28:51 > 0:28:56'take David's total outlay to £138,000 without costs or fees.
0:28:56 > 0:29:02'He may have done it on time, but will it meet the property market's requirements?'
0:29:05 > 0:29:08Walking in here for the first time since it's been refurbished
0:29:08 > 0:29:11is an amazing transformation. I love what he's done to it.
0:29:11 > 0:29:15They've done a very good job. It's nice and neutral.
0:29:15 > 0:29:18Big, spacious living area. The kitchen's nice and modern.
0:29:18 > 0:29:22And also the garden, it's a nice, easily-maintained garden.
0:29:22 > 0:29:26The garden is amazing. It's a bit of a secret garden. I never knew that amount of it existed
0:29:26 > 0:29:28but he's opened it up and it's really friendly.
0:29:28 > 0:29:34'David had always planned this as a rental property to add to his ever-increasing portfolio.
0:29:34 > 0:29:40'But how would his £138,000 investment fare if sold?'
0:29:41 > 0:29:44Putting the property up for sale, I would place it on the market
0:29:44 > 0:29:46at somewhere in the region of £160,000.
0:29:46 > 0:29:49If I was to put the property onto the market at the moment,
0:29:49 > 0:29:54I'd probably be looking for a marketing price of between £145,000 and £150,000.
0:29:54 > 0:30:00'That's a potential pre-tax profit of between £7,000 and £22,000.
0:30:00 > 0:30:03'But it was rental that was always David's target market.'
0:30:06 > 0:30:10On the rental market, you could achieve somewhere in the region of £700 per calendar month.
0:30:10 > 0:30:12If we were to put it onto the rental market at the moment,
0:30:12 > 0:30:15we'd be looking to achieve about £700 per calendar month.
0:30:15 > 0:30:19It has been rented and it's going out tomorrow at £750,
0:30:19 > 0:30:23and that was a local agent who's given a price and I said fine.
0:30:23 > 0:30:27'Whoa! That's pretty impressive, to refurbish this property
0:30:27 > 0:30:29'and rent it out in under five weeks.
0:30:29 > 0:30:32'With £750 per calendar month income,
0:30:32 > 0:30:36'David will see a decent yield of 6.5 percent.
0:30:36 > 0:30:41'So is he pleased with the outcome of property number 14?'
0:30:42 > 0:30:46It's just one of many. I mean, there's three more on the cards now.
0:30:46 > 0:30:48So we've just got to keep going.
0:30:51 > 0:30:54'With David's dogged determination to succeed,
0:30:54 > 0:31:00'I've no doubt that he'll continue to lead a successful property-developing career.'
0:31:10 > 0:31:14'Today I'm in Stapleford in Nottinghamshire.
0:31:14 > 0:31:17'It's one of around 17 Staplefords in England.
0:31:17 > 0:31:21'It's not just a popular name but a popular place to live,
0:31:21 > 0:31:26'with easy access to nearby Nottingham, Derby and the M1 motorway network.
0:31:26 > 0:31:29'You can trace the town's history back to before Norman times
0:31:29 > 0:31:32'towards the end of the Dark Ages.
0:31:32 > 0:31:36'But as we're about to find out, the future for property developing here certainly looks bright.'
0:31:36 > 0:31:40Well, I'm pretty much in the centre of Stapleford,
0:31:40 > 0:31:43but not to see a property.
0:31:43 > 0:31:45Up for auction was a plot of land.
0:31:45 > 0:31:50Had a guide price of 150,000 quid and this is it.
0:31:50 > 0:31:54Well, you certainly can't knock the location. And at first view,
0:31:54 > 0:31:57it's flat, which is always a good start. Let's have a look round.
0:31:59 > 0:32:01'Flat, level, if a bit overgrown,
0:32:01 > 0:32:07'this was previously the car park for a pub and now it's ripe for development.'
0:32:07 > 0:32:09# Once there were parking lots
0:32:09 > 0:32:12# Now it's all covered with flowers
0:32:15 > 0:32:20# If this is paradise, I wish I had a lawnmower #
0:32:20 > 0:32:24Now, if this was just a plot of land, it'd be worth, I don't know, just a few thousand pounds.
0:32:24 > 0:32:30What made the guide price £150,000 was that the plot comes with planning permission.
0:32:30 > 0:32:32So, what are they planning to put here?
0:32:32 > 0:32:36Well, I, as if by magic, have some plans for the plot.
0:32:36 > 0:32:40So here's the road in that I walked up
0:32:40 > 0:32:43and we've got one pair of semi-detached properties
0:32:43 > 0:32:47and then three linked properties here. So five properties in total.
0:32:47 > 0:32:51I think, looking round the plot, there's certainly enough space here for that.
0:32:51 > 0:32:54What's the design that they're going for?
0:32:55 > 0:33:00Quite pleasant, as you can see. So, these are the linked properties and these are the semis.
0:33:00 > 0:33:02All in all, some really interesting plans,
0:33:02 > 0:33:07and I think if you keep a tight rein on the budget, there's money to be made here, too.
0:33:07 > 0:33:12'All five houses will have three bedrooms and come with plenty of parking.
0:33:12 > 0:33:16'And in case you're wondering, a linked property is essentially a detached house
0:33:16 > 0:33:20'but joined to the next one by something like a garage.'
0:33:20 > 0:33:23# Gonna get myself, I'm gonna get myself
0:33:23 > 0:33:26# I'm gonna get myself connected #
0:33:26 > 0:33:29'So, this site would have two semis and three linked detached houses.
0:33:29 > 0:33:32'So far, so good.
0:33:32 > 0:33:35'However, even when the plot is supposedly vacant land,
0:33:35 > 0:33:39'it's always worth checking it out, and here the plot thickens.'
0:33:39 > 0:33:42# Something ain't right #
0:33:43 > 0:33:46Well, there's lots of things about this plot which are really ideal.
0:33:46 > 0:33:50It's flat, it's got easy access to services and good road access.
0:33:50 > 0:33:53However, I've just spotted a couple of flies in the ointment.
0:33:53 > 0:33:57For a start, this is a garage. This isn't in with the lot that was sold,
0:33:57 > 0:34:02so whatever you do here, you're going to have to give the owner to this garage a right of access.
0:34:02 > 0:34:05So that's going to certainly limit your designs.
0:34:05 > 0:34:08And if you come over this way, I've just also noticed
0:34:08 > 0:34:12that there is a massive drop-off on this side of the site.
0:34:12 > 0:34:16Now, I've got no idea what condition this bit of land is in,
0:34:16 > 0:34:21and if it's crumbling away then this bit of land could equally crumble away in time,
0:34:21 > 0:34:23so that wall there or whatever's underneath
0:34:23 > 0:34:26is going to really have to be checked out by a structural engineer
0:34:26 > 0:34:31and possibly shored up to provide good stability to the rest of this plot.
0:34:31 > 0:34:33So a couple of problems.
0:34:33 > 0:34:36Not insurmountable, but definitely need to be considered.
0:34:36 > 0:34:39'So, although this bit of land isn't part of the plot,
0:34:39 > 0:34:45'it is uncomfortably close and may affect the foundations needed for the new builds.
0:34:45 > 0:34:49'Despite that, I still think this plot offers a great opportunity for the right developer.
0:34:49 > 0:34:52'We asked a local property expert to look around
0:34:52 > 0:34:56'and see if she thinks a residential development in this area
0:34:56 > 0:34:58'is a good idea.'
0:34:59 > 0:35:01Good plot, good sizeable plot,
0:35:01 > 0:35:05should do well with some residential properties,
0:35:05 > 0:35:09certainly three to four-bedrooms there's a limited amount of properties available.
0:35:09 > 0:35:14'How much could these houses command on the resale market?'
0:35:15 > 0:35:18I would imagine the semi-detached properties would fetch
0:35:18 > 0:35:21in the region of £160,000
0:35:21 > 0:35:24and the detached properties in the region of £175,000.
0:35:24 > 0:35:31'That's a potential resale value for the whole site of £845,000.
0:35:31 > 0:35:33'But what about rental?'
0:35:33 > 0:35:36From a rental, semi-detached properties would fetch
0:35:36 > 0:35:40somewhere in the region of £650 per calendar month.
0:35:40 > 0:35:46The detached would probably fetch in the region of £700 to £750 per calendar month.
0:35:51 > 0:35:55So, a sizable plot, this one. Probably not for a first-time developer.
0:35:55 > 0:35:59But stick to the budget, be very careful on what you build,
0:35:59 > 0:36:02as in, will it sell in this locality?
0:36:02 > 0:36:04And I think there's money to be made.
0:36:04 > 0:36:08Let's see who fancied the opportunity when it went under the hammer.
0:36:09 > 0:36:14Lot 64 is a residential redevelopment site
0:36:14 > 0:36:18with detailed consent for five houses.
0:36:18 > 0:36:20Who's got 150 to start on guide?
0:36:20 > 0:36:23150? 150,000. Thank you.
0:36:23 > 0:36:25151 somewhere? 151 I have.
0:36:25 > 0:36:30152. 153 is bid. 153.
0:36:30 > 0:36:32154. 155.
0:36:32 > 0:36:35156. 157.
0:36:35 > 0:36:38157,000. 58.
0:36:38 > 0:36:41159. 160.
0:36:41 > 0:36:43161. 161.
0:36:43 > 0:36:47162? 162. 163?
0:36:47 > 0:36:49163.
0:36:49 > 0:36:51163,000. 164.
0:36:51 > 0:36:53165.
0:36:53 > 0:36:57166. 167.
0:36:57 > 0:36:59168. 169.
0:36:59 > 0:37:02170. 71.
0:37:02 > 0:37:0572. 173.
0:37:05 > 0:37:07174.
0:37:07 > 0:37:10175. 76?
0:37:10 > 0:37:13At £175,000, we're selling it.
0:37:13 > 0:37:15For the first time at 175.
0:37:15 > 0:37:17For the second time at 175.
0:37:17 > 0:37:19- Third and last chance. - HAMMER BANGS
0:37:19 > 0:37:23It's yours, sir. Thank you. £175,000.
0:37:23 > 0:37:26The successful bid of £175,000,
0:37:26 > 0:37:28'£25,000 over the guide price,
0:37:28 > 0:37:30'was made by David and Diana.
0:37:30 > 0:37:35'This developing duo have properties in the UK, Spain and Florida.
0:37:35 > 0:37:38'Although technically retired,
0:37:38 > 0:37:42'they just can't help getting involved in new projects.'
0:37:42 > 0:37:44# Can't help myself #
0:37:44 > 0:37:48'They bought this development site in partnership with local builder Mick.
0:37:48 > 0:37:51'I met them at their new purchase to find out more.'
0:37:51 > 0:37:55- David, Diana, lovely to meet you. Congratulations.- Thank you.
0:37:55 > 0:37:59- Nice bit of scrub land you've bought yourself here. - Yes, we like a nice brush.
0:37:59 > 0:38:02So talk me through the plans for the plot, then.
0:38:02 > 0:38:05OK, it came with planning permission, but they were five linked houses.
0:38:05 > 0:38:07We'd like to think that on a site like this,
0:38:07 > 0:38:11we can get a little bit more return on it by making them detached.
0:38:11 > 0:38:15We've now come up with a plan where there are a pair of semis
0:38:15 > 0:38:22and three four-bed detached, which should raise another £30,000 to £40,000 income off the plot
0:38:22 > 0:38:26- compared to the other plans. - So just show me the plans and talk me through it.- OK.
0:38:26 > 0:38:30- There's the basic plans.- So that's orientated like we're standing.
0:38:30 > 0:38:35This is correct. Now, behind us, we've got the pair of semis, directly behind us,
0:38:35 > 0:38:40there is a four-bed in the corner, a four-bed over there detached
0:38:40 > 0:38:44and a four-bed there detached with a large turn-in/parking area in front
0:38:44 > 0:38:48- with the access road coming up there. - Let's talk about profit.
0:38:48 > 0:38:50- OK.- What are you going to sell them for?- Right.
0:38:50 > 0:38:55The profit line, when all are sold, is around about the £300,000 mark.
0:38:55 > 0:38:58Right. So taking in the build costs and the cost of the land,
0:38:58 > 0:39:00- having done it all, you walk away with 300 grand.- Correct.
0:39:00 > 0:39:04The project that we've just done, that's the figure we walked away with.
0:39:04 > 0:39:07- Right. So there's money in development still.- I think there is.
0:39:07 > 0:39:10'They'll only see that level of profit
0:39:10 > 0:39:13'if they sell all five properties they build here
0:39:13 > 0:39:15'and stick to their proposed budget
0:39:15 > 0:39:20'of £455,000 to £475,000 to build them all.
0:39:20 > 0:39:26'Of course, this is a partnership with their builder, Mick, so the profit will be split.'
0:39:26 > 0:39:30- Who does the work then, Diana? - Our partner, Michael,
0:39:30 > 0:39:33is the project manager.
0:39:33 > 0:39:37Dave's very busy on the finance side,
0:39:37 > 0:39:44keeping Mick in check with what he's paying out, et cetera.
0:39:44 > 0:39:47So, you know, they both contribute.
0:39:47 > 0:39:4950/50, I would say.
0:39:49 > 0:39:52Right. And the whole thing is a joint venture.
0:39:52 > 0:39:54Yeah, that's the way we've gone, 50/50. I finance it,
0:39:54 > 0:39:57Mick project-manages it, and it's as simple as that.
0:39:57 > 0:39:59So what do you do when you're not doing this, Diana?
0:39:59 > 0:40:01- Sitting in the sun.- Do you?
0:40:01 > 0:40:06We've got a place in Spain and we spend a lot of time there now,
0:40:06 > 0:40:08more time than probably here.
0:40:08 > 0:40:13- We've also got villas in America that we go five, six weeks of the year to.- Great.
0:40:13 > 0:40:17And then you come back in the summer months, presumably,
0:40:17 > 0:40:20- to do the building?- No, because Michael does the building work
0:40:20 > 0:40:23and as long as I'm on the internet, I can do the accounting side of it.
0:40:23 > 0:40:27So let me get this right, you are in Florida or in Spain,
0:40:27 > 0:40:30- in the sunshine, by the pool, connected to the wireless internet...- Correct.
0:40:30 > 0:40:36- ..while Michael is here... - Working hard.- ..digging and plastering and painting
0:40:36 > 0:40:39- and shouting at people.- Yes.- Right. You've got this well sussed.
0:40:39 > 0:40:42Yes. But I can't do it without him
0:40:42 > 0:40:44and he can't do it without me. It's as simple as that.
0:40:44 > 0:40:49'Well, that's true. Mick needs David's financial input to get the project off the ground.
0:40:49 > 0:40:53'But with the plots now bought, it's very much down to him to deliver,
0:40:53 > 0:40:58'so I thought I'd catch up with the man who's actually going to get the five houses built.'
0:40:58 > 0:41:01Hi! Good to see you! All right?
0:41:01 > 0:41:04So, it's your job to make all this happen, then.
0:41:04 > 0:41:08Yes. I'm here, the technical guy, as you'd like to put it,
0:41:08 > 0:41:12and project-managing, I'll sort the whole job out.
0:41:12 > 0:41:14Right. So what do you think about the plot?
0:41:14 > 0:41:17Erm, it's not a bad plot. It's nice and flat, nice and level.
0:41:17 > 0:41:21We've got a little bit of a problem behind us
0:41:21 > 0:41:24where we've got to construct quite a considerable retaining wall,
0:41:24 > 0:41:27but can't see any major problems.
0:41:27 > 0:41:31At what point do you get involved in the design for what's going to come on here?
0:41:31 > 0:41:34I come in straight at day one.
0:41:34 > 0:41:37I'm already talking to the architect.
0:41:38 > 0:41:41You know, tweaking plots here and there,
0:41:41 > 0:41:45trying to get the best out of the site.
0:41:45 > 0:41:49While you're slaving away, Dave and Diana are by the pool.
0:41:49 > 0:41:53They are, yeah. Yes, that's the cross I have to bear.
0:41:53 > 0:41:55You seem remarkably OK about that.
0:41:56 > 0:41:58- I have to be. I have to be. - MARTIN LAUGHS
0:41:58 > 0:42:01Although, he's a great guy
0:42:01 > 0:42:04- and, you know, we get on well. - Right.
0:42:04 > 0:42:08- We're not just partners, we're big mates. - Great. Good. That's what you need.
0:42:08 > 0:42:12- Good luck. Congratulations.- OK. - I'll leave you to get on!- Thank you.
0:42:14 > 0:42:18Well, times are still tough in the property-developing world,
0:42:18 > 0:42:20but it just goes to show, if you get the numbers right,
0:42:20 > 0:42:23you buy the land for the right amount of money
0:42:23 > 0:42:26and you're very careful with your budget, there is still money to be made.
0:42:26 > 0:42:29How will they get on with this exciting development project?
0:42:29 > 0:42:31You can find out later in the show.
0:42:34 > 0:42:37It's been many months now since we last saw those properties.
0:42:37 > 0:42:42So have the renovations been plain sailing or bumpy rides?
0:42:42 > 0:42:44Let's go back and find out.
0:42:46 > 0:42:51'Ramsgate in Kent was where we found a rather interesting mid-terraced house.
0:42:51 > 0:42:53'Just a short distance from the town centre,
0:42:53 > 0:42:56'this property was a bit of a muddle.
0:42:56 > 0:43:00'Spread over four floors, it had four bedrooms,
0:43:00 > 0:43:03'a basement, a front reception room on the first floor,
0:43:03 > 0:43:08'and at the back, a dining area, kitchen and bathroom without a toilet,
0:43:08 > 0:43:10'all in a higgledy-piggledy layout.
0:43:16 > 0:43:22'With signs of damp and no available parking, this wasn't going to be everyone's cup of tea.
0:43:22 > 0:43:24'But London-based couple Roy and Lynette
0:43:24 > 0:43:26'saw more ups than downs here
0:43:26 > 0:43:31'and bought it at auction for £100,000 as a buy-to-let.
0:43:32 > 0:43:35'Lynette's a nurse while Roy's an electrician.
0:43:35 > 0:43:38'This was to be their third renovation project.'
0:43:38 > 0:43:42It's certainly unusual. The layout's unusual, to say the least.
0:43:42 > 0:43:47But I think it'll be good. There's lots to do and it's going to be a good project to get our teeth into.
0:43:47 > 0:43:49The big question here is the budget.
0:43:49 > 0:43:54Yes, I think about £15,000.
0:43:54 > 0:43:57- When he said £15,000, you sort of shook your head. - It'll be at least 20.
0:43:57 > 0:44:01'Well, a slight difference of opinion.
0:44:01 > 0:44:05'They were hoping that with additional help from family members,
0:44:05 > 0:44:08'they could turn this around in three to four months.
0:44:08 > 0:44:13'Now, four and a half months later, we return to see how Lynette and Roy got on.
0:44:16 > 0:44:19'Encouraging signs from the outside with fresh paintwork on the house
0:44:19 > 0:44:23'and the railings. What about inside?
0:44:24 > 0:44:29'Well, the first floor front reception room is still a work in progress,
0:44:29 > 0:44:34'but the stairs and access to the kitchen have now been redecorated and carpeted.
0:44:34 > 0:44:37'And that confusing back room area?
0:44:40 > 0:44:43'Well, that's better!
0:44:44 > 0:44:46'Now there's a great kitchen-diner
0:44:46 > 0:44:49'and the entrance to the bathroom has been moved at right-angles
0:44:49 > 0:44:52'to fit in a much-improved bathroom.
0:44:55 > 0:45:00'Complete with toilet! So how did they manage to get all this in?'
0:45:00 > 0:45:05Well, the major thing was knocking this room through,
0:45:05 > 0:45:07this was like a little dining area,
0:45:07 > 0:45:10and this lean-to was originally the kitchen.
0:45:10 > 0:45:16Knocked all that through, put a reinforced beam in up above to take the weight.
0:45:16 > 0:45:21'The bathroom's extended and we now have a three-piece suite in the bathroom, which is much better.
0:45:21 > 0:45:25You've got room to have a little table in here if you want to have family meals in here.
0:45:25 > 0:45:30And it flows better as a unit, rather than cramping through a little door in the back area.
0:45:30 > 0:45:33'Well, they've certainly maximised the space they had here.
0:45:33 > 0:45:38'Upstairs, and on the landing, the now additional toilet and basin area
0:45:38 > 0:45:41'have been upgraded.
0:45:45 > 0:45:49'The two bedrooms on the second floor have had a total makeover,
0:45:49 > 0:45:52'with new carpets, paintwork and central heating.
0:45:52 > 0:45:57'Of course, as a qualified electrician, Roy's put new electrics in throughout.
0:45:57 > 0:46:00'On the top floor, the other two bedrooms are also finished
0:46:00 > 0:46:04'and there's not a patch of magnolia in sight. Hurray!
0:46:05 > 0:46:10'But what about the basement room with its unusual Egyptian hieroglyphics?
0:46:13 > 0:46:16'Well, they've definitely been consigned to the past
0:46:16 > 0:46:19'and the room's been sealed with damp-resistant plaster and paint.
0:46:19 > 0:46:24'But how did they get on with unearthing this four-storey residence?'
0:46:24 > 0:46:28It's been stressful, but it's also been fun. I love painting.
0:46:28 > 0:46:33I'm quite happy to put the radio on, Radio 2, and paint.
0:46:33 > 0:46:36I'm not very good at it, but I can paint and I enjoy that
0:46:36 > 0:46:39and my husband does all bricks and mortar and the nitty-gritty of it.
0:46:39 > 0:46:42And my daughter and the family came down and helped strip wallpaper.
0:46:42 > 0:46:47My son did the central heating, a friend of his did the kitchen and fitting.
0:46:47 > 0:46:52'So with their son, a qualified plumber, and Roy, an electrician,
0:46:52 > 0:46:56'along with the help from family and friends and the radio,
0:46:56 > 0:46:59'the couple have nearly finished refurbishing from top to bottom.
0:46:59 > 0:47:02'They hope to complete the remaining jobs in under two weeks
0:47:02 > 0:47:05'and that's not a moment too soon.'
0:47:05 > 0:47:08Well, within days of buying the property,
0:47:08 > 0:47:13my daughter said her daughter, my granddaughter,
0:47:13 > 0:47:16had a friend who was thinking of relocating to this area,
0:47:16 > 0:47:18and once she'd been down and seen the property,
0:47:18 > 0:47:21decided it was exactly what she wanted and she couldn't wait to get in.
0:47:21 > 0:47:26So within days of buying it, before we even started work, I think, we got a tenant.
0:47:26 > 0:47:31'Well, that's a fantastic incentive to start any property project.
0:47:31 > 0:47:35'In fact, the soon-to-be tenants helped with the decoration work
0:47:35 > 0:47:38'and had a say on the colours. But they have overrun a bit.
0:47:38 > 0:47:42'So with Lynette saying it would cost £20,000
0:47:42 > 0:47:47'and Roy £15,000 to do the work, who was right on the money?'
0:47:48 > 0:47:51Roy was actually right about the money, I think.
0:47:51 > 0:47:53I sat and did the calculations.
0:47:53 > 0:47:57We haven't quite finished yet, there's a few more incidental prices to come in,
0:47:57 > 0:47:59like there's a minor roof repair that needs doing.
0:47:59 > 0:48:04I think it's around about 15. 14,000, 15,000 total, so it's not bad.
0:48:06 > 0:48:08'A £15,000 spend
0:48:08 > 0:48:11'on top of their £100,000 purchase price
0:48:11 > 0:48:16'will take their total to £115,000 without tax and fees.
0:48:16 > 0:48:18'So have they got the most out of this property?
0:48:18 > 0:48:21'What do two local estate agents think?'
0:48:25 > 0:48:29I think the quirky layout is very appealing.
0:48:29 > 0:48:31I think it suits the house.
0:48:31 > 0:48:35People will either love it or hate it.
0:48:35 > 0:48:37It's been very well modernised throughout.
0:48:37 > 0:48:39Also, looking at the position of the property,
0:48:39 > 0:48:41walking distance into the high street,
0:48:41 > 0:48:44and you've also got the speed link at Ramsgate,
0:48:44 > 0:48:48so you've got the high-speed train link into London, it's a very good area to invest in.
0:48:48 > 0:48:51'Well, this was always intended as a buy-to-let.
0:48:51 > 0:48:53'But would the couple make any money
0:48:53 > 0:48:57'if they sold their £115,000 investment?'
0:48:57 > 0:49:04I would expect the property to achieve around £160,000 to £165,000.
0:49:04 > 0:49:06If we were to put the property up for sale today,
0:49:06 > 0:49:10we'd look at putting it on for £150,000 to £155,000.
0:49:10 > 0:49:14I think, for the area, it's not too bad.
0:49:14 > 0:49:18- It's higher than I expected. - It'd be nice to be a bit more, but that's not bad.
0:49:18 > 0:49:24'That's a potential pre-tax profit of between £35,000 and £50,000. Not bad.
0:49:24 > 0:49:29'But this property has already been rented out. Did they get the best possible rental return?'
0:49:29 > 0:49:35I would expect it to achieve around £750 per calendar month.
0:49:35 > 0:49:38If we were looking at putting the property onto the rental market,
0:49:38 > 0:49:41it would be in the region of £700 to £750 per calendar month.
0:49:41 > 0:49:43Well, we've beaten that, so we're all right.
0:49:43 > 0:49:46We've got more than that already, so, yeah, we're happy.
0:49:46 > 0:49:51'Result! With rent in excess of £750 per calendar month,
0:49:51 > 0:49:55'that would generate a healthy yield of over eight percent.
0:49:55 > 0:49:58'Are they pleased with that?'
0:49:58 > 0:50:01- Yes.- Very much, yeah. Been good fun.
0:50:06 > 0:50:09'In the small town of Stapleford, just outside Nottingham,
0:50:09 > 0:50:13'we came across a very interesting development opportunity.
0:50:13 > 0:50:18'A plot of land with planning permission to build five three-bedroom houses.
0:50:18 > 0:50:22'Although the new-build market has had a difficult time in recent years,
0:50:22 > 0:50:25'experienced developers David and Diana,
0:50:25 > 0:50:27'along with business partner Mick,
0:50:27 > 0:50:31'thought they could make this one work for them with a little tweaking of the plans.'
0:50:31 > 0:50:34The original plan was five linked houses
0:50:34 > 0:50:39and what we wanted to do was to get more out of the plot than we could with those profit-wise,
0:50:39 > 0:50:42so what we've intended doing is very similar
0:50:42 > 0:50:44but we want to put a pair of semis
0:50:44 > 0:50:49and three four-bed detached on the site so it should bring in more income.
0:50:49 > 0:50:52'Having bought the site for £175,000,
0:50:52 > 0:50:56'they hoped to construct the five houses in about a year
0:50:56 > 0:51:00'on a budget of £455,000 to £475,000.
0:51:00 > 0:51:05'When I say they, in fact, it was going to be down to Mick to oversee the construction
0:51:05 > 0:51:08'while David and Diana soaked up the sun
0:51:08 > 0:51:11'at one of their properties in Spain or Florida.'
0:51:11 > 0:51:15While you're slaving away, Dave and Diana are by the pool.
0:51:15 > 0:51:19They are, yeah. Yes, that's the cross I have to bear.
0:51:19 > 0:51:22You seem remarkably OK about that.
0:51:22 > 0:51:25I have to be. I have to be.
0:51:25 > 0:51:29'So, while the pool beckoned for David and Diana,
0:51:29 > 0:51:32'Mick waited for the green light from the planners
0:51:32 > 0:51:35'so he could crack on with the revised build plans.
0:51:35 > 0:51:40'Well, 13 months later, we're back.
0:51:43 > 0:51:46'Where once there was just scrub land,
0:51:46 > 0:51:51'a small housing development has sprung up and it's just as they planned.
0:51:53 > 0:51:59'With five houses consisting of two three-bed semi-detached properties
0:51:59 > 0:52:02'and three detached four-bed houses.
0:52:02 > 0:52:07'They look pretty good from the outside, but what about inside?'
0:52:07 > 0:52:09OK, this is one of the semis.
0:52:09 > 0:52:12We've fitted nice kitchens in all of them.
0:52:12 > 0:52:16The semis are identical. And we have all the fittings.
0:52:16 > 0:52:21We've got dishwasher, fridge-freezer, obviously hob and the extractors.
0:52:21 > 0:52:23And all nice fittings.
0:52:23 > 0:52:26And we've got carpets coming in this area.
0:52:26 > 0:52:28And in actual fact, the good thing is,
0:52:28 > 0:52:31we've sold one of the two already.
0:52:31 > 0:52:34'Apart from a different colour scheme in the kitchen,
0:52:34 > 0:52:37'the two semi-detached houses have the same layout
0:52:37 > 0:52:39'with three bedrooms upstairs.
0:52:39 > 0:52:42'There's a master bedroom with an en suite
0:52:42 > 0:52:45'and two smaller doubles.
0:52:45 > 0:52:48'There's also a family bathroom and a reasonable garden plot to the rear.
0:52:50 > 0:52:54'What about the three larger four-bed detached properties?'
0:52:54 > 0:52:56We're now in one of the three detached.
0:52:56 > 0:52:59Every one is a different style.
0:52:59 > 0:53:02In the kitchen, we've got it all tiled and it's all laid out nicely.
0:53:02 > 0:53:04We've got a downstairs toilet,
0:53:04 > 0:53:07laminate flooring going down in the hall,
0:53:07 > 0:53:09nice stairs going up there and a massive big lounge.
0:53:09 > 0:53:13And once again, this is the biggest and this is sold.
0:53:13 > 0:53:18'Although slightly different, all the detached properties have,
0:53:18 > 0:53:20'like this one, a large kitchen.
0:53:22 > 0:53:27'And four bedrooms, a master bedroom with en suite shower room...
0:53:29 > 0:53:32'..and three other bedrooms.
0:53:32 > 0:53:34'Plus a family bathroom.
0:53:34 > 0:53:38'Although they're six weeks away from completing the houses,
0:53:38 > 0:53:40'they've managed to sell two already
0:53:40 > 0:53:42'with a third one in negotiation.
0:53:42 > 0:53:46'How did they divide their time working on this development?'
0:53:46 > 0:53:48Michael has been on site all the time
0:53:48 > 0:53:52whilst me and my darling wife have been in Spain or other parts of the country.
0:53:52 > 0:53:57And we've been working over there, because I've been doing all the financial side,
0:53:57 > 0:54:01paying the account and actually financing the project, so it's worked out well.
0:54:01 > 0:54:03Oh, I think the partnership works quite well.
0:54:03 > 0:54:06Dave keeps out of my way and I keep out of his,
0:54:06 > 0:54:11which has obviously got to be, you know, a perfect partnership.
0:54:11 > 0:54:14# Hey, you
0:54:14 > 0:54:17# Get off of my cloud #
0:54:18 > 0:54:21'It seems they've found a working relationship that maximises all their skills.
0:54:21 > 0:54:27'That's just as well, as it's not just the five houses they've ended up building in this location.'
0:54:30 > 0:54:35Whilst we've been building on here, we bought this land from the owners of the pub directly behind this,
0:54:35 > 0:54:38and what we've done is we've approached them,
0:54:38 > 0:54:41we've actually bought the pub from them and we've got planning for ten apartments
0:54:41 > 0:54:45which we've actually started, it's in the process
0:54:45 > 0:54:48and we should, within the next 12 months, have completed that.
0:54:48 > 0:54:51'Goodness! They have been busy.
0:54:51 > 0:54:54'But this level of development takes some investment
0:54:54 > 0:54:56'and at present, David reckons the total cost
0:54:56 > 0:54:59'of building the five houses, including the purchase of the land,
0:54:59 > 0:55:03'is £640,000.
0:55:03 > 0:55:07'But have they built the right type of houses for the area?
0:55:07 > 0:55:10'What do two local estate agents think?'
0:55:12 > 0:55:15Obviously, they're all individually designed,
0:55:15 > 0:55:19so not one of them is the same, which is great, you've got a choice.
0:55:19 > 0:55:21It's great how they've all been set out.
0:55:21 > 0:55:23Lovely quiet cul-de-sac location.
0:55:23 > 0:55:27It's going to be really popular. No through roads, lots of parking.
0:55:27 > 0:55:30Allocated parking around here is particularly of a shortage,
0:55:30 > 0:55:32so that'll be a benefit for any buyers.
0:55:32 > 0:55:36'This has always been a resale project for the trio.
0:55:36 > 0:55:41'They want to get their money out so they can move onto other opportunities.
0:55:41 > 0:55:45'So, with a total of £640,000 invested here,
0:55:45 > 0:55:50'could they see a healthy return for over 13 months' work?'
0:55:50 > 0:55:53I'd value this four-bed detached at £230,000
0:55:53 > 0:55:58and I'd value the three-bedroom semi at £150,000.
0:55:58 > 0:56:02The four-bed detached I would value at £210,000 to £220,000
0:56:02 > 0:56:06and the three-bed semi I would value at £130,000 to £150,000.
0:56:06 > 0:56:13'Those figures could see a pre-tax profit of between £270,000 and £350,000
0:56:13 > 0:56:15'if they manage to sell all the houses.
0:56:15 > 0:56:19'So what do they think of those valuations?'
0:56:20 > 0:56:24- Spot on.- We're happy with the valuations.- Yeah.- Definitely.
0:56:24 > 0:56:27'In fact, they sold one of the detached houses
0:56:27 > 0:56:30'for just over £227,000
0:56:30 > 0:56:33'and one of the semis for £148,000.
0:56:33 > 0:56:37'So they're well on their way to making this development pay.
0:56:37 > 0:56:40'Of course, they're already onto the next one,
0:56:40 > 0:56:43'so is this business partnership here to stay?'
0:56:44 > 0:56:48- I hope so.- Yep.- Exactly the same, it's working well up to now.
0:56:48 > 0:56:52- Two years, it's the second project and we're going onto the third. - Yeah, definitely.
0:56:54 > 0:56:58We'll be back next time with more thrills and spills from the auction room.
0:56:58 > 0:57:02- Yes, make sure you join us then for more Homes Under The Hammer. - Goodbye.- Goodbye.
0:57:04 > 0:57:08Subtitles by Red Bee Media Ltd
0:57:08 > 0:57:08.