0:00:02 > 0:00:05- Hello. Welcome to the programme. - Property auctions used to be
0:00:05 > 0:00:07the domain of builders and developers, but not any more.
0:00:07 > 0:00:10Loads of people are realising their potential.
0:00:10 > 0:00:12Even in this difficult market,
0:00:12 > 0:00:15people are still buying their homes under the hammer.
0:00:40 > 0:00:42Even for the most experienced buyers,
0:00:42 > 0:00:45auctions can be nerve-wracking and exciting
0:00:45 > 0:00:48but you've got to be careful not to get carried away.
0:00:48 > 0:00:51Did today's buyers keep a cool head and bag a bargain?
0:00:51 > 0:00:53Here's what they bid for.
0:00:54 > 0:00:59I serve up a garden flat in Wimbledon but it is not yet an ace.
0:01:01 > 0:01:03There's definitely room for improvement.
0:01:04 > 0:01:06In this two-bed bungalow
0:01:06 > 0:01:09in Borrowash, Derby, things take a dramatic turn!
0:01:09 > 0:01:13And then... # Dun, dun, da! #
0:01:15 > 0:01:18In Blackhall, Co Durham, it's worth remembering to look up
0:01:18 > 0:01:21in a property as well as around.
0:01:21 > 0:01:24I need to find out what's going on with the ceiling here.
0:01:25 > 0:01:27All these properties went to auction.
0:01:27 > 0:01:30255. And we'll find out who bought them...
0:01:30 > 0:01:34- 32.- and what they paid when they went under the hammer.
0:01:37 > 0:01:38I'm in a part of London
0:01:38 > 0:01:41that's famous for holding an annual sporting event.
0:01:41 > 0:01:45No, it is not football, cricket or rugby.
0:01:45 > 0:01:47If you are lucky enough to bag a ticket,
0:01:47 > 0:01:50you'll more than likely be eating strawberries and quaffing champagne.
0:01:50 > 0:01:54That's right, I'm in Wimbledon, south-west London.
0:01:54 > 0:01:57It's a truly fabulous part of the city.
0:02:00 > 0:02:02And a popular commuter suburb
0:02:02 > 0:02:07with both mainline and underground trains to central London.
0:02:07 > 0:02:11A very short walk from the tube and train station,
0:02:11 > 0:02:14and I'm here to see today's auction lot.
0:02:14 > 0:02:22The last property to sell on THIS road sold for a staggering £905,000.
0:02:22 > 0:02:26I'm here to see a property that went to auction
0:02:26 > 0:02:29with a much smaller price tag.
0:02:29 > 0:02:30Now, this is it.
0:02:30 > 0:02:36It's a ground floor flat with two bedrooms and the guide, £260,000.
0:02:38 > 0:02:43The garden flat is leasehold and has a healthy 125 years remaining.
0:02:43 > 0:02:45I think it's got plenty going for it.
0:02:45 > 0:02:50A welcoming front door and lovely ornate mouldings at the front.
0:02:50 > 0:02:54OK, it could do with a lick of paint buy I'm not put off just yet.
0:02:54 > 0:02:59Through the communal hall to its own front door.
0:02:59 > 0:03:02It's a bit of a squashed, awkward entrance.
0:03:02 > 0:03:06This wall is coming out too far, there is nowhere to go here.
0:03:06 > 0:03:09You have got a wonderful large room to the front of the property -
0:03:09 > 0:03:11that could be a bedroom.
0:03:11 > 0:03:15A nice sized bathroom, it's all tiled. Maybe a little dated.
0:03:15 > 0:03:18Second bedroom here, which is incredibly small.
0:03:18 > 0:03:21That is quite a disappointing size.
0:03:21 > 0:03:24Then, you walk through the flat to an open kitchen.
0:03:24 > 0:03:28There is a window, so it is nice and bright but it is small.
0:03:28 > 0:03:34Right at the back, thank goodness, you have got a lovely open space.
0:03:34 > 0:03:37You can almost forgive what's going on back there.
0:03:37 > 0:03:42This is a fantastic, light and bright space.
0:03:42 > 0:03:45But I am wondering why they haven't opened up this wall -
0:03:45 > 0:03:47it's only a partition.
0:03:47 > 0:03:51You could get this wall down and have a lovely open-plan kitchen.
0:03:51 > 0:03:54There is enough room for your table
0:03:54 > 0:03:57and there are lovely doors leading out to your garden.
0:03:57 > 0:04:01So this flat? Well, there's definitely room for improvement.
0:04:01 > 0:04:05# There ain't nothing wrong with this old house
0:04:05 > 0:04:07# It just needs a little home improvement. #
0:04:07 > 0:04:10I'm confident that with some minor tweaks,
0:04:10 > 0:04:13you could turn this ground floor, garden flat
0:04:13 > 0:04:18that went to auction guided at £260,000, into something special.
0:04:18 > 0:04:23Down these stairs in the hall, there's more space.
0:04:23 > 0:04:25Basements are in high demand in London. If you can't go up,
0:04:25 > 0:04:28everybody is going down.
0:04:28 > 0:04:29Dig out and add pounds.
0:04:29 > 0:04:32I'm not saying this should be a luxury home cinema,
0:04:32 > 0:04:35but you could utilise this space.
0:04:35 > 0:04:39An all-important utility area, - hide the washing machines -
0:04:39 > 0:04:41or how about a walk-in wardrobe?
0:04:41 > 0:04:45I know I've got enough pairs of shoes to fill THIS space.
0:04:45 > 0:04:47But tread carefully,
0:04:47 > 0:04:50footing the bill for basement conversions can be pricey.
0:04:52 > 0:04:54# Toe the line for sure
0:04:55 > 0:04:58# And toe the line for good. #
0:05:00 > 0:05:03If you plan to tank the walls and add plumbing and ventilation,
0:05:03 > 0:05:06you have to know where to toe the line.
0:05:06 > 0:05:10And there's more potential outside.
0:05:10 > 0:05:15You may think this flat is a little tired on the inside, you'd be right.
0:05:15 > 0:05:18It does have an awful lot going for it.
0:05:18 > 0:05:21Number one, it's got its own private garden.
0:05:21 > 0:05:23How lovely! What a selling point!
0:05:23 > 0:05:27Number two, there's off-road parking, another real asset.
0:05:27 > 0:05:33Number three, planning permission to create a single-storey extension.
0:05:33 > 0:05:38This auction lot comes with full planning permission.
0:05:38 > 0:05:41What it means is, you could utilise the side return there.
0:05:41 > 0:05:44You could come right out.
0:05:44 > 0:05:47Adding this extension would transform the flat.
0:05:47 > 0:05:49The kitchen would turn into the bathroom,
0:05:49 > 0:05:52the second bedroom would gain so much more space
0:05:52 > 0:05:55and the kitchen and living room,
0:05:55 > 0:05:58that would be one large open area at the back of the property
0:05:58 > 0:06:03with lovely big doors leading out to the garden. Fantastic!
0:06:03 > 0:06:06The best news is that the extension doesn't just give you more space
0:06:06 > 0:06:09it increases the value significantly.
0:06:09 > 0:06:14It could add as much as £50,000 to the sale price.
0:06:14 > 0:06:16So, I think, well worth doing.
0:06:16 > 0:06:19There is one flaw in the plan,
0:06:19 > 0:06:21while that tiny second bedroom
0:06:21 > 0:06:24would steal much-needed space from the original bathroom,
0:06:24 > 0:06:27the plans allow for the rear living area
0:06:27 > 0:06:30only to be extended into the side.
0:06:30 > 0:06:33The second bedroom's French doors would open out to
0:06:33 > 0:06:34a bit of dead space.
0:06:36 > 0:06:40We invited a local estate agent to have a look at the flat
0:06:40 > 0:06:43that went to auction guided at £260,000.
0:06:43 > 0:06:47How does she think it presents itself as it stands now?
0:06:47 > 0:06:50# First impressions are lasting impressions
0:06:50 > 0:06:54- # I know, I know, I know. # - First impressions of the property
0:06:54 > 0:06:55are a little tired,
0:06:55 > 0:06:59needs a little bit of help, a little bit of care and attention.
0:06:59 > 0:07:02What about the plans that came with a flat?
0:07:02 > 0:07:04The proposed plans are excellent
0:07:04 > 0:07:07either for the developer to do themselves,
0:07:07 > 0:07:12or to offer the property with those plans for future sales.
0:07:12 > 0:07:14Does she agree with me that the extension
0:07:14 > 0:07:17will add significant value to this property?
0:07:17 > 0:07:19With a little paint, I suggest that you could
0:07:19 > 0:07:23probably sell this property for around £375,000.
0:07:23 > 0:07:30Once developed, I would market the property around £425,000.
0:07:30 > 0:07:34I would seriously look at any offers over and above £410,000.
0:07:34 > 0:07:36Without the extension,
0:07:36 > 0:07:41the agent's rental valuation is £1,400 per calendar month.
0:07:41 > 0:07:44She suggests that could increase to £2,000 per month
0:07:44 > 0:07:47if the extension is built.
0:07:47 > 0:07:50A great little flat in a prime location
0:07:50 > 0:07:53with planning permission to extend and add value.
0:07:53 > 0:07:56This is a fantastic one to go for.
0:07:56 > 0:07:59Let's find out who fancied this Wimbledon winner
0:07:59 > 0:08:00when it went under the hammer.
0:08:00 > 0:08:05Lot 15, ground floor flat, Wimbledon SW19.
0:08:05 > 0:08:09Great location, you are just near the underground and shops.
0:08:09 > 0:08:14Let's start at 250 then. 250. 255.
0:08:14 > 0:08:22255, because I can see you. 260? 260. 265. 270. 275...
0:08:22 > 0:08:27Well, lots of interest in the auction room
0:08:27 > 0:08:30we rejoin the bidding at £350,000.
0:08:30 > 0:08:36..350. 351. 352? 352.
0:08:36 > 0:08:41353? 353 in the aisle. 354.
0:08:41 > 0:08:48It's Wimbledon! 355. Not far from the tennis courts. 356.
0:08:48 > 0:08:51356 standing up.
0:08:54 > 0:09:00357 sitting down. 358. 359.
0:09:00 > 0:09:04360? 360. 361.
0:09:04 > 0:09:12362? 361, first time, second time, third and last time.
0:09:12 > 0:09:18Are you all done? Sold! 361 sitting down. Sorry everyone else.
0:09:18 > 0:09:23That final successful bid of £361,000 was made by Frank.
0:09:25 > 0:09:28He owns a property developing and construction company
0:09:28 > 0:09:32with his son James.
0:09:32 > 0:09:37I met up with James at the flat to find out the plans for this place.
0:09:37 > 0:09:41James, congratulations. What a great flat.
0:09:41 > 0:09:43Yes, we're quite happy with it.
0:09:43 > 0:09:45Who spotted it in the auction catalogue?
0:09:45 > 0:09:49- My father.- Did he?- Yes.- Tell me about your dad and the business.
0:09:49 > 0:09:51Basically, it's a family business.
0:09:51 > 0:09:55My father goes round, he buys the properties.
0:09:55 > 0:10:01He finds them and I build them for him. We work as a family team.
0:10:01 > 0:10:03It's not just me and my father, my wife's involved.
0:10:03 > 0:10:05Can you lend your hand to most things,
0:10:05 > 0:10:07or do you have a specific trade?
0:10:07 > 0:10:11I am actually a qualified gas engineer.
0:10:11 > 0:10:15I have that behind me but I do know every man's trade.
0:10:15 > 0:10:17I can tell if any man's trying to pull the wool over my eyes,
0:10:17 > 0:10:19or not doing a good job.
0:10:19 > 0:10:22I make sure that the best job is done at all times.
0:10:22 > 0:10:25James started working with his dad when he was 17.
0:10:25 > 0:10:29He got his gas qualifications and has worked on their building sites.
0:10:29 > 0:10:32Over the years, they have made many different redevelopment projects
0:10:32 > 0:10:35and even built eight new properties.
0:10:35 > 0:10:39Now, they are turning their attention to this place.
0:10:39 > 0:10:42This flat definitely gets better as it goes on.
0:10:42 > 0:10:44You walk in the door, it's a bit disappointing,
0:10:44 > 0:10:49and then it gradually gets a bit better. What did you like about it?
0:10:49 > 0:10:52I think it's because with the plans that has come with it,
0:10:52 > 0:10:54we'll open it right out to the back.
0:10:54 > 0:10:58As you come in, it is going to get better.
0:10:58 > 0:11:02Our new plans, we'll try and make the front half better as well.
0:11:02 > 0:11:04Hold on! So, you've changed the plans?
0:11:04 > 0:11:07Yeah. We weren't too happy with what it came with,
0:11:07 > 0:11:10so we're going to try and put an amendment in with planning.
0:11:10 > 0:11:13It's got a funny little dogleg on it at the moment.
0:11:13 > 0:11:16We're going to go straight across which will give us slightly more room
0:11:16 > 0:11:20and, hopefully, with a bit of luck, we'll get that.
0:11:20 > 0:11:23What'll it cost you to do the build? To do the extension?
0:11:23 > 0:11:25Considering we own our own construction firm,
0:11:25 > 0:11:29I would say around the 30 mark.
0:11:29 > 0:11:32Is anything worrying you? Anything keeping you up at night?
0:11:32 > 0:11:35To be honest, no. We have been doing this for a long time.
0:11:35 > 0:11:39It's not a large project, so I've kind of seen it all before.
0:11:39 > 0:11:41Hopefully, it should all go smoothly.
0:11:41 > 0:11:43Depending on the time it takes
0:11:43 > 0:11:46to get the revised planning application through,
0:11:46 > 0:11:49James hopes to get the flat completed in three to four months.
0:11:49 > 0:11:54His intention is to convert the basement into a utility room.
0:11:54 > 0:11:56If his amended plans are approved,
0:11:56 > 0:12:00he'll extend out into the void space at the side of the kitchen
0:12:00 > 0:12:05and relocate the bathroom to the original kitchen space.
0:12:07 > 0:12:12But I can see that you've decided to call that void area, the kitchen.
0:12:12 > 0:12:15Surely, that's going to be the same size as THIS kitchen,
0:12:15 > 0:12:18which currently is a bit of a negative.
0:12:18 > 0:12:20It's not big enough for the property.
0:12:20 > 0:12:23Yeah, I would agree with you on that.
0:12:23 > 0:12:26What we're going to do is build the shell first.
0:12:26 > 0:12:29We are going to look at re-evaluating it.
0:12:29 > 0:12:31It might end up being a large bathroom, possibly an en suite
0:12:31 > 0:12:34for the second bedroom
0:12:34 > 0:12:35and we might do a kitchen-diner.
0:12:35 > 0:12:38We're going to get the shell up first and see where we go from there.
0:12:38 > 0:12:39James, good luck with this.
0:12:39 > 0:12:41I hope you are successful with the planners.
0:12:41 > 0:12:44Thank very much.
0:12:44 > 0:12:46So, James has encountered
0:12:46 > 0:12:49nearly every problem a property can throw up.
0:12:49 > 0:12:51In my experience, there's always something
0:12:51 > 0:12:53that surprises you when renovating.
0:12:53 > 0:12:57Will he find any? And how will he get on amending those plans?
0:12:57 > 0:12:59You can find out, if he does it all
0:12:59 > 0:13:02in three to four months, later in the show.
0:13:04 > 0:13:07Today, I'm in the East Midlands
0:13:07 > 0:13:11heading for the outskirts of the bustling city of Derby.
0:13:11 > 0:13:13I'm going to a little village
0:13:13 > 0:13:15that sits within chanting distance of the Rams -
0:13:15 > 0:13:18that's Derby County Football Club to you and me.
0:13:18 > 0:13:21Just three miles from Derby city centre,
0:13:21 > 0:13:23in the suburbs is the village of Borrowash -
0:13:23 > 0:13:27a very popular place with commuters and a nice residential area.
0:13:27 > 0:13:30You've got yourself a cul-de-sac here, that's great news
0:13:30 > 0:13:33because the property I'm here to see is this.
0:13:33 > 0:13:35It's a two-bedroom semi-detached bungalow
0:13:35 > 0:13:39at a guide price of £70,000 plus.
0:13:39 > 0:13:42It looks OK, tender loving care needed at the front.
0:13:42 > 0:13:45Let's see what it's like inside.
0:13:45 > 0:13:50So, a nice secluded location and a neat little bungalow.
0:13:50 > 0:13:54A great property for a down-sizer or for an investor.
0:13:54 > 0:13:59Unless there are any nasty surprises, it bodes rather well.
0:14:00 > 0:14:03So, what's the layout? Interesting...
0:14:03 > 0:14:06Through the front door and on the right hand side, the loo.
0:14:06 > 0:14:09It looks like that hasn't been replaced
0:14:09 > 0:14:11since the property was built.
0:14:11 > 0:14:13A bit of time and effort in there would pay dividends.
0:14:13 > 0:14:16Interesting location. I don't know why I didn't expect to find it
0:14:16 > 0:14:19right by the front door, but that's where it is.
0:14:19 > 0:14:23Cupboard there, fairly old looking water heating system.
0:14:23 > 0:14:25You could create some space in the bathroom
0:14:25 > 0:14:28by taking that out and putting a combi boiler in.
0:14:28 > 0:14:30That would give you a bigger size family bathroom.
0:14:30 > 0:14:32A small single bedroom there
0:14:32 > 0:14:36and, on the other side, a reasonable size double.
0:14:36 > 0:14:40And then, a bit of a saving grace here, into the main living area.
0:14:40 > 0:14:42As soon as you walk through the door,
0:14:42 > 0:14:46you're struck by the big patio doors looking out into the garden.
0:14:46 > 0:14:50Really nice to see that. It lets loads of light into this room.
0:14:50 > 0:14:53We like that. Here's a classic from that era -
0:14:53 > 0:14:57sliding door leading to the kitchen. Not a bad size.
0:14:57 > 0:15:01Again, looks like it hasn't been replaced for a very long time.
0:15:01 > 0:15:04Spend a bit of money in there and in the bathroom.
0:15:04 > 0:15:08It is what it is. It's a well-proportioned bungalow.
0:15:08 > 0:15:10But to get the most out of this bungalow,
0:15:10 > 0:15:13you would need to drag it out of the 1960s.
0:15:13 > 0:15:18# And it's all just a little bit of history repeating... #
0:15:23 > 0:15:27These sliding patio doors really are a lovely feature.
0:15:27 > 0:15:32They lead out onto a half decent size garden
0:15:32 > 0:15:35with some good shrubs. A great space.
0:15:35 > 0:15:39Nothing untoward until you come over this way and then...
0:15:39 > 0:15:42# Dun, dun, da! #
0:15:42 > 0:15:43..it's a garage.
0:15:43 > 0:15:49That would be OK but, unfortunately, it is an asbestos garage.
0:15:49 > 0:15:51It would probably be OK
0:15:51 > 0:15:54as long as you don't break any of the asbestos panels.
0:15:54 > 0:15:56If you do decide to get rid of it,
0:15:56 > 0:15:58it has got to be done by a specialist.
0:16:00 > 0:16:04# ..Yes, I've seen it before
0:16:05 > 0:16:08# Just a little bit of history repeating. #
0:16:08 > 0:16:12I did say this was a nice place IF there were no nasty surprises.
0:16:12 > 0:16:19This is IT. But, garage aside, this is a property with possibilities.
0:16:19 > 0:16:23At the rear of the property, let's talk extension options.
0:16:23 > 0:16:25If you look down the row of bungalows,
0:16:25 > 0:16:28you can see somebody has done a classic thing for a bungalow,
0:16:28 > 0:16:30stick on a dormer. That is one option.
0:16:30 > 0:16:32The planning people would be approving of that
0:16:32 > 0:16:34especially if it was on the rear.
0:16:34 > 0:16:38The other option is to do what the neighbour here has done
0:16:38 > 0:16:40which is to stick an extension on the back.
0:16:40 > 0:16:42Either of those options are available.
0:16:42 > 0:16:45That kind of extension you could get away with
0:16:45 > 0:16:47without getting planning permission,
0:16:47 > 0:16:49although you would need building regulations,
0:16:49 > 0:16:52as long as it was within permitted development rules.
0:16:52 > 0:16:55A dormer, you would have to apply for planning permission.
0:16:55 > 0:16:58It would come down to whether or not it was financially worth it,
0:16:58 > 0:17:00or, if you're looking to live here,
0:17:00 > 0:17:03whether it gave you that extra space that you can't live without.
0:17:03 > 0:17:07A little beaut of a bungalow with not too many issues to address.
0:17:07 > 0:17:09Guided at 70,000 plus,
0:17:09 > 0:17:15let's see what the auctioneer who sold it, thinks about it.
0:17:15 > 0:17:18First impressions are, we have got a clean and tidy bungalow.
0:17:18 > 0:17:22It is not large and not up-to-date but many of these places aren't.
0:17:22 > 0:17:27It wouldn't take a lot of money to bring it into the 21st century.
0:17:27 > 0:17:29The kitchen is quite small
0:17:29 > 0:17:32and this would benefit from being larger.
0:17:32 > 0:17:36Other than putting a conservatory on the back of the lounge,
0:17:36 > 0:17:38it cries out for that,
0:17:38 > 0:17:41there isn't a lot you can do other than upgrade what's here.
0:17:41 > 0:17:44Keeping a close watch on your spending will be the key
0:17:44 > 0:17:48to turning this bedraggled bungalow into a little belter.
0:17:48 > 0:17:50Once renovated what could it sell for?
0:17:50 > 0:17:53I think this might fetch quite a good price
0:17:53 > 0:17:58because you don't need a lot of money to renovate it.
0:17:58 > 0:18:01It's already got double glazing.
0:18:01 > 0:18:04The kitchen is old-fashioned, it would be easy to refit this.
0:18:04 > 0:18:09I would say if you spent modest money on it,
0:18:09 > 0:18:13it would probably be worth up to £125,000.
0:18:13 > 0:18:16What about the rental market in this area?
0:18:16 > 0:18:18Would that be a sensible option?
0:18:18 > 0:18:21Renovated, it's got a rental value in the order of
0:18:21 > 0:18:25£450 to £475 per calendar month.
0:18:25 > 0:18:27One of the tricks with auctions
0:18:27 > 0:18:31is to spot those little properties that are good and honest.
0:18:31 > 0:18:35Yes, they need a bit of sorting out but, primarily,
0:18:35 > 0:18:38do that and you've got yourself a great house.
0:18:38 > 0:18:40That's exactly the situation here.
0:18:40 > 0:18:43Let's see who wanted it when it went under the hammer.
0:18:44 > 0:18:48Lot 25, two bedrooms, semi-detached bungalow.
0:18:48 > 0:18:51Who's got 72 to start me?
0:18:51 > 0:18:5572 he has, thank you. £72,000.
0:18:55 > 0:19:0173 is bid. At 73. 74. 75.
0:19:01 > 0:19:0375. 76. 77...
0:19:03 > 0:19:06There was a great deal of interest in this bungalow
0:19:06 > 0:19:09with offers flying in from all over the room.
0:19:09 > 0:19:12We rejoined the bidding at £96,500.
0:19:12 > 0:19:18..96,500. 97. 97,500. 98.
0:19:18 > 0:19:2198. 500.
0:19:21 > 0:19:2699. 500, sir? 500.
0:19:26 > 0:19:2999,500 against you. No?
0:19:29 > 0:19:34At £99,500 once, going twice.
0:19:34 > 0:19:40100. 500. 100,500. It's against you. No?
0:19:42 > 0:19:46At £100,500. Sold at the back.
0:19:46 > 0:19:50# You can call me Mr Fix It whoa now... #
0:19:50 > 0:19:56That successful bid of £100,500 came from Rob.
0:19:56 > 0:19:58# ..They call me Mr Fix It. #
0:19:58 > 0:20:02He is a self-employed property maintenance expert.
0:20:02 > 0:20:06Rob plans to renovate the bungalow with help from his girlfriend,
0:20:06 > 0:20:09Camilla, who is an office administrator.
0:20:09 > 0:20:12I met with them to hear about their plans.
0:20:12 > 0:20:14- Camilla, Rob, good to meet you both.- Thank you.
0:20:14 > 0:20:17Tell me why you wanted to buy the bungalow?
0:20:17 > 0:20:18Basically, to make some money...
0:20:18 > 0:20:21- OK! - ..to refurbish it and make a profit.
0:20:21 > 0:20:23So why this particular place?
0:20:23 > 0:20:25I thought it seems a very innocent property,
0:20:25 > 0:20:28not been messed about with. You know, good area.
0:20:28 > 0:20:31- And I could make a profit on it. - What's your background, Rob?
0:20:31 > 0:20:34I actually work in property maintenance in Newport Pagnell,
0:20:34 > 0:20:35where I live.
0:20:35 > 0:20:37- Newport Pagnell?- Yes.
0:20:37 > 0:20:39Right, as in, quite a long way away.
0:20:39 > 0:20:4275 miles away, Newport Pagnell, yes, that's right.
0:20:42 > 0:20:45I advertise locally as property maintenance
0:20:45 > 0:20:48and I'm employed in people's private houses
0:20:48 > 0:20:51to do anything property maintenance -
0:20:51 > 0:20:53kitchens, bathrooms, decorating.
0:20:53 > 0:20:56So, you've got a bit of experience in the whole sort of property world?
0:20:56 > 0:20:59- Ten years, yes. - So what tempted you up to Derby?
0:20:59 > 0:21:03You couldn't afford things in Milton Keynes.
0:21:03 > 0:21:05Yes, it's mainly the prices in Derbyshire
0:21:05 > 0:21:06that brought me up this way.
0:21:06 > 0:21:09Tell me about your background, Camilla?
0:21:09 > 0:21:13I just do admin and I'm a mother with two kids.
0:21:13 > 0:21:16- And much property experience? - Not really.
0:21:16 > 0:21:19I've got a degree in architecture, so I like design.
0:21:19 > 0:21:21Tell me what you're going to do to this place to sort it out.
0:21:21 > 0:21:24Basically, a complete refurbishment from top to bottom.
0:21:24 > 0:21:28New kitchen, new bathroom. Central heating.
0:21:28 > 0:21:32Or change the boiler, it's got radiators. Decoration, carpets...
0:21:32 > 0:21:36What about outside? You've obviously got this slightly dubious garage.
0:21:36 > 0:21:38I think I'll keep the garage.
0:21:38 > 0:21:41I think it's OK, as long as you don't create dust from it by drilling holes
0:21:41 > 0:21:43in it or anything like that.
0:21:43 > 0:21:44Yes, it does look like asbestos.
0:21:44 > 0:21:47It's better to have a garage than not have one.
0:21:47 > 0:21:49And I'm just going to trim the trees, cut the grass,
0:21:49 > 0:21:50tidy up the flowerbeds.
0:21:50 > 0:21:54And how are you going to do that when you live 75 miles away?
0:21:54 > 0:21:57I'm going to be coming up here during the week, on Monday,
0:21:57 > 0:22:01- staying here until Friday and going back for weekends.- Right.
0:22:01 > 0:22:04# They call me Mr Fix It... #
0:22:04 > 0:22:07Sounds like Rob and Camilla have done their homework.
0:22:07 > 0:22:10Rob has really thought through the logistics
0:22:10 > 0:22:13of how he's going to work here. Top marks from me.
0:22:14 > 0:22:18- What is the timescale? - Four to six weeks.- Oh, wow.
0:22:18 > 0:22:21- So, what's the budget? - £8,000-£10,000.
0:22:21 > 0:22:22And if you do it for that,
0:22:22 > 0:22:25what kind of profit do you think you might be on for for this one?
0:22:25 > 0:22:28I'm hoping to make a £10,000 profit.
0:22:28 > 0:22:30Anything more than that would be a bonus.
0:22:30 > 0:22:32And what is the plan for the future, Camilla?
0:22:32 > 0:22:34Is it to sort of carry on with this whole thing?
0:22:34 > 0:22:37Yeah, I think just to keep buying properties
0:22:37 > 0:22:40and make the profit a little bit bigger every time. That's it.
0:22:40 > 0:22:42- So you're just right at the beginning, really.- Yes.
0:22:42 > 0:22:44- Just a year into it. - Property number two.
0:22:44 > 0:22:46So, with this second property,
0:22:46 > 0:22:50it might look like a fairly easy profit on the face of it.
0:22:50 > 0:22:53But there's a lot of time and money to be spent here.
0:22:53 > 0:22:57They looked at 24 properties before deciding on this one
0:22:57 > 0:23:01and if time is money, you can add that time to the real costs so far.
0:23:01 > 0:23:06Rob paid upfront for a broker fee and a mortgage arrangement fee,
0:23:06 > 0:23:08as he needed to borrow to buy this property.
0:23:08 > 0:23:12Add to that a valuation survey fee.
0:23:12 > 0:23:16So, how much is his outlay so far, before any work begins?
0:23:16 > 0:23:18I think about £800.
0:23:18 > 0:23:21So, had you not got it, then, that would have just been...?
0:23:21 > 0:23:22Absolutely. That's the gamble.
0:23:22 > 0:23:25- The previous auction, you did that for a different property.- Yes.
0:23:25 > 0:23:27And you didn't get it.
0:23:27 > 0:23:32Better to gamble wasting £800, than bidding on a property
0:23:32 > 0:23:36and paying a 10% deposit that I would lose if it was un-mortageable.
0:23:36 > 0:23:39- Well, congratulations. Good luck. - Thank you very much.
0:23:39 > 0:23:42- And I look forward to seeing how you get on.- Thank you very much.
0:23:43 > 0:23:48So, architectural experience and practical property experience,
0:23:48 > 0:23:49a very good combination.
0:23:49 > 0:23:53How will Camilla and Rob get on sorting this place out?
0:23:53 > 0:23:55You can find out later in the show.
0:23:57 > 0:23:59Coming up, in Blackhall, County Durham,
0:23:59 > 0:24:04this lean-to might make you worry about the inside of the house.
0:24:04 > 0:24:06It's actually really pleasant!
0:24:06 > 0:24:09We return to Derby, where Rob's refurbishment
0:24:09 > 0:24:13of this bungalow went down well with Camilla.
0:24:13 > 0:24:16I'm quite impressed, actually, with what he's done.
0:24:18 > 0:24:21And back in Wimbledon, James faced a dilemma.
0:24:21 > 0:24:23Do we go for a standard specification, or do we try
0:24:23 > 0:24:26and push the market a bit, go up on the spec?
0:24:29 > 0:24:33Wimbledon in south-west London is synonymous
0:24:33 > 0:24:34with the tennis championships.
0:24:34 > 0:24:36# Anyone for tennis?
0:24:36 > 0:24:39# Wouldn't that be nice? #
0:24:40 > 0:24:44But it's not just Andy Murray fans who love the area.
0:24:44 > 0:24:48With the station serving up good rail links to central London,
0:24:48 > 0:24:52local properties are in high demand.
0:24:52 > 0:24:54The two bedroom, garden flat in this property
0:24:54 > 0:24:59was bought for 361,000 by James and his father, Frank,
0:24:59 > 0:25:02who own a construction and property developing company.
0:25:04 > 0:25:07The flat had planning permission to add an extension at the rear,
0:25:07 > 0:25:10but James wanted to tweak that.
0:25:10 > 0:25:12Hold on a minute! So, you've changed the plans?
0:25:12 > 0:25:15Yeah, we're going to try to put in an amendment in with the planning.
0:25:15 > 0:25:16Hopefully we'll get it.
0:25:16 > 0:25:19It's just got a funny little dogleg on it at the moment -
0:25:19 > 0:25:21we're going to try to go straight across with it,
0:25:21 > 0:25:24which is going to give us slightly more room.
0:25:24 > 0:25:25But would the planning department
0:25:25 > 0:25:27say James was barking up the wrong tree?
0:25:29 > 0:25:32Well, eight-and-a-half months later, back in Wimbledon,
0:25:32 > 0:25:36it's game, set and match to James.
0:25:36 > 0:25:39Because, after a delay, the plans were approved.
0:25:49 > 0:25:51This super extension looks really great.
0:25:54 > 0:25:58I love this decking and those bi-fold doors.
0:26:02 > 0:26:04And look at the effect inside!
0:26:04 > 0:26:06In the extra space James has gained,
0:26:06 > 0:26:10this very high-tech kitchen has been installed.
0:26:16 > 0:26:20James is understandably delighted with it.
0:26:20 > 0:26:24Right, what we've done here is we've done this side return,
0:26:24 > 0:26:30the infill back over here. The extension, as you can see,
0:26:30 > 0:26:31the beam that comes all the way along here
0:26:31 > 0:26:34is the line of the original building.
0:26:34 > 0:26:37It stopped around about here, the existing building.
0:26:37 > 0:26:39So from there on is a rear extension.
0:26:39 > 0:26:42And then that's your site extension coming along there.
0:26:42 > 0:26:44So it's added considerable square footage to the property.
0:26:44 > 0:26:48We've got a very nice big open living area.
0:26:48 > 0:26:50A nice, luxurious apartment.
0:26:50 > 0:26:53Plenty of open space outside as well, once this is all opened up.
0:26:53 > 0:26:56Definitely have some good parties here, I would say!
0:26:57 > 0:27:00With the new kitchen located in the extension,
0:27:00 > 0:27:03the original kitchen is now this five-star bathroom.
0:27:11 > 0:27:17I'm really impressed with the finish in this flat. Top spec, for sure.
0:27:17 > 0:27:19The second bedroom benefited, too,
0:27:19 > 0:27:23expanding into the original bathroom and gaining two windows.
0:27:27 > 0:27:32The master bedroom at the front has kept the same dimensions.
0:27:32 > 0:27:34James had hoped to get this Wimbledon project
0:27:34 > 0:27:37completed in three sets.
0:27:37 > 0:27:41But it ran to a five set thriller, as he explains.
0:27:41 > 0:27:43We're now quite a few months down the line,
0:27:43 > 0:27:47but we lost coming up for four months due to party wall complications.
0:27:47 > 0:27:51At one point, we just completely had to stop here.
0:27:51 > 0:27:54James faced more delays and expense as the foundations
0:27:54 > 0:27:58had to be increased due to the clay subsoil.
0:27:58 > 0:28:00With the costs rising,
0:28:00 > 0:28:05he called a meeting to discuss the next move for the interior design.
0:28:05 > 0:28:07We sort of had to make a decision,
0:28:07 > 0:28:09do we go for a standard specification,
0:28:09 > 0:28:12or do we try and push the market a bit, go up on the spec?
0:28:12 > 0:28:15And that's what we decided to do.
0:28:15 > 0:28:16Well, a good call, I reckon.
0:28:23 > 0:28:26On the original planning, there was a pair of patio doors,
0:28:26 > 0:28:29as opposed to a set of sliding, folding doors.
0:28:29 > 0:28:32And I just thought if we could open that up as much as possible
0:28:32 > 0:28:33so, in the summertime,
0:28:33 > 0:28:36you can almost feel like you're sitting in the garden.
0:28:36 > 0:28:39So after the delayed start, once work began,
0:28:39 > 0:28:42how often has James been on site?
0:28:42 > 0:28:44Every day! Hands on, as well.
0:28:44 > 0:28:46I did the heating system myself.
0:28:46 > 0:28:49That's my trade, a heating engineer, along with my son.
0:28:49 > 0:28:52I run the team of guys myself, so, every day.
0:28:52 > 0:28:54The basement has been boarded
0:28:54 > 0:28:58and will be the utility room with valuable extra storage space.
0:28:58 > 0:29:01How much has the conversion cost?
0:29:01 > 0:29:04We were going to spend 30, and I'd say we're closer to 60 now.
0:29:04 > 0:29:07So quite a big increase, but hopefully worth it.
0:29:07 > 0:29:11With the 361,000 James's father paid at auction,
0:29:11 > 0:29:15that makes their total investment 421,000.
0:29:17 > 0:29:20We invited two local property experts to view the flat.
0:29:20 > 0:29:23What do they think of the finish James has achieved?
0:29:23 > 0:29:26The kitchen and the living area are superb.
0:29:26 > 0:29:29Nice, open-plan living, which is very common nowadays
0:29:29 > 0:29:31and very sort of desirable.
0:29:31 > 0:29:35The living space is very modern.
0:29:35 > 0:29:39Good natural light. Bi-fold windows, very popular these days.
0:29:39 > 0:29:41The bedrooms are both a very good size.
0:29:41 > 0:29:45The bathroom is really, really nice, modern, very clean finish.
0:29:45 > 0:29:48You can tell that there is good quality that has been
0:29:48 > 0:29:51used in the bathroom as well.
0:29:51 > 0:29:53How much could the flat sell for?
0:29:53 > 0:29:57More than the £421,000 invested here?
0:29:57 > 0:30:00I would market this property at £630,000
0:30:00 > 0:30:03and look to achieve between 600 and 630,000.
0:30:03 > 0:30:06If we were asked to market this property,
0:30:06 > 0:30:09I would be hopeful of achieving £575,000.
0:30:09 > 0:30:15That range of between 575 and 630,000 could mean a gross profit
0:30:15 > 0:30:21of between 154 and 209,000, before tax and expenses.
0:30:21 > 0:30:27OK. Yeah, we've actually turned down a figure over the six already.
0:30:27 > 0:30:29But, yeah, very happy.
0:30:29 > 0:30:31I mean the sort of 630-ish, or just below that,
0:30:31 > 0:30:34we'd be quite happy. If not, we'll go for rentals.
0:30:34 > 0:30:36OK, let's talk more figures.
0:30:36 > 0:30:39How much rental income could the flat earn?
0:30:39 > 0:30:40For rental per calendar month,
0:30:40 > 0:30:43I'd put this between £1,700 and £1,800 per month.
0:30:43 > 0:30:45If we were to let this property,
0:30:45 > 0:30:48I'd expect to achieve £1,600 per calendar month.
0:30:48 > 0:30:51Perhaps £1,700 per calendar month.
0:30:51 > 0:30:56So a potential yield of 4% to 5% on the 421,000
0:30:56 > 0:30:58they've invested here.
0:30:58 > 0:30:59I thought it might be a bit higher.
0:30:59 > 0:31:01I've had a couple of quotes around the 2,000 mark.
0:31:01 > 0:31:04But 1,700 to 1,800, we'd be quite happy with that, really.
0:31:04 > 0:31:06It's not bad at all.
0:31:06 > 0:31:08Clearly, James's hard work will pay off
0:31:08 > 0:31:11for the family development company.
0:31:11 > 0:31:14But is his dad Frank happy with the end result?
0:31:14 > 0:31:17He comes here all the time, has a little check up on what I'm up to.
0:31:17 > 0:31:21No, he's over the moon. Very happy. He thinks we've done a good job!
0:31:21 > 0:31:23And the latest news?
0:31:23 > 0:31:26The two bedroom flat is currently under offer
0:31:26 > 0:31:30at £591,500 from a cash buyer.
0:31:33 > 0:31:36Today, I'm near the beautiful north-east coast of England,
0:31:36 > 0:31:38in the village of Blackhall,
0:31:38 > 0:31:42which developed around the colliery there before it closed in 1981.
0:31:42 > 0:31:45It still has the hallmarks of a life built around the mines
0:31:45 > 0:31:48and a really strong community spirit.
0:31:48 > 0:31:50It's now a commuter village just off the A19
0:31:50 > 0:31:52within easy reach of Durham.
0:31:52 > 0:31:55# It's just a hop, skip and a jump
0:31:55 > 0:31:57# To where my baby's at! #
0:31:57 > 0:32:01Well, just a hop, skip and a jump from the centre of Blackhall,
0:32:01 > 0:32:07is a two bedroom, end-terraced house with one of those guide prices
0:32:07 > 0:32:10that just stops you in your tracks.
0:32:10 > 0:32:1519,950 quid.
0:32:15 > 0:32:17In 2012?!
0:32:17 > 0:32:21# Isn't it cheap?
0:32:21 > 0:32:24# Isn't it cheap? #
0:32:24 > 0:32:28So, for that amount of money, a good roof and four walls,
0:32:28 > 0:32:32and I think you'd be quids in. But, no, it's actually really pleasant.
0:32:32 > 0:32:35You've got a little porch area there, keep the cold out.
0:32:35 > 0:32:38And then through into a really decent-size living room.
0:32:38 > 0:32:43A bay window there, you've got an open fire. Nice high ceilings.
0:32:43 > 0:32:45Not seeing anything I don't like so far.
0:32:45 > 0:32:49Through to this slightly green middle part of the house.
0:32:49 > 0:32:52You've got a downstairs bathroom there. Upstairs to your bedrooms.
0:32:52 > 0:32:54And then through on into the kitchen.
0:32:54 > 0:32:57And again, nothing here I'm seeing I don't like.
0:32:57 > 0:33:00It's a little bit in need of tender loving care,
0:33:00 > 0:33:02but a half-decent size.
0:33:02 > 0:33:05Door out to a little sort of lean-to area there
0:33:05 > 0:33:06and on into the back garden.
0:33:06 > 0:33:10For that amount of money, this is great!
0:33:10 > 0:33:13# That is excellent!
0:33:13 > 0:33:16# Oh, yes, that's excellent! #
0:33:16 > 0:33:20For that guide price of 19,950,
0:33:20 > 0:33:23this really does look like an excellent buy.
0:33:23 > 0:33:26I hope I'm not going to be disappointed.
0:33:26 > 0:33:30The bathroom suite's in good condition. It just needs re-tiling.
0:33:30 > 0:33:34I wonder if the first floor's going to be excellent, too?
0:33:34 > 0:33:38So, upstairs and, sadly, no bathroom or loo here,
0:33:38 > 0:33:41it is just the one downstairs. So, would you move it? I don't know.
0:33:41 > 0:33:45It's certainly an interesting layout. Quite a small rear bedroom.
0:33:45 > 0:33:48And then a really big front bedroom.
0:33:48 > 0:33:51For a family, this might actually work quite well.
0:33:51 > 0:33:53But maybe you could think about playing around
0:33:53 > 0:33:54with some of the walls.
0:33:54 > 0:33:56Feels like it might be a stud partition.
0:33:56 > 0:33:58So something you could potentially do there.
0:33:58 > 0:34:00But before you do that,
0:34:00 > 0:34:03you need to find out what's going on with the ceiling here.
0:34:03 > 0:34:06Hopefully, it's just a bit of loose plaster.
0:34:06 > 0:34:10Worst case scenario, something going wrong with the roof.
0:34:10 > 0:34:12That could be expensive.
0:34:12 > 0:34:14Touch wood, it's nothing serious.
0:34:14 > 0:34:17Maybe not this wood, it might all come crashing down.
0:34:17 > 0:34:19But judging by a quick look from outside,
0:34:19 > 0:34:21the roof doesn't look too bad.
0:34:21 > 0:34:24Although I'd always advise getting it checked out.
0:34:24 > 0:34:26The front of the house has a very pleasant outlook
0:34:26 > 0:34:28across to this church.
0:34:30 > 0:34:33And the windows and rendering seem in good nick, too.
0:34:33 > 0:34:35Well, at the rear of the property,
0:34:35 > 0:34:39a bit of a mishmash of this sort of lean-to, conservatory thing,
0:34:39 > 0:34:43some outbuildings, some outdoor storage as well.
0:34:43 > 0:34:46You might consider doing what the next-door neighbours
0:34:46 > 0:34:49have done and put a really nice kind of extension on here.
0:34:49 > 0:34:51But you've got the space to do it,
0:34:51 > 0:34:53and the fact you've got these buildings here means
0:34:53 > 0:34:55that you wouldn't have to apply for planning permission.
0:34:55 > 0:34:58Building regulations, yes, but not planning permission.
0:34:58 > 0:35:01It is always wise to talk to your local planning department
0:35:01 > 0:35:03before you do anything.
0:35:03 > 0:35:06But with the neighbours' extension as a precedent
0:35:06 > 0:35:08and the buildings that are already here,
0:35:08 > 0:35:10''it's looking pretty promising.
0:35:10 > 0:35:15As does this whole house for that guide price of just under £20,000.
0:35:15 > 0:35:19We asked along a local property expert to tell us
0:35:19 > 0:35:21what he thought of this auction lot.
0:35:21 > 0:35:24What does he make of the upstairs layout?
0:35:24 > 0:35:27Would he recommend altering it?
0:35:27 > 0:35:31I suppose you could separate the two rooms to create three bedrooms.
0:35:31 > 0:35:36The bathroom is downstairs. A lot of people like a bathroom upstairs now,
0:35:36 > 0:35:38so you could move the bathroom up there.
0:35:38 > 0:35:42Assuming no major configuration but a new central heating system
0:35:42 > 0:35:45and a general refurbishment were carried out,
0:35:45 > 0:35:50what could this end of terrace fetch on the open market?
0:35:50 > 0:35:53I would expect it to achieve between £70,000 and £75,000.
0:35:53 > 0:35:57What rental return could it earn?
0:35:57 > 0:35:59In the current rental market,
0:35:59 > 0:36:03I would expect to achieve about £450 per calendar month.
0:36:03 > 0:36:06If you're looking for a property bargain,
0:36:06 > 0:36:08it's clear where you have got to come.
0:36:08 > 0:36:10Blackhall.
0:36:10 > 0:36:12Let's see if this place went for
0:36:12 > 0:36:15anything like that £19,950 plus guide price
0:36:15 > 0:36:17when it went under the hammer.
0:36:17 > 0:36:21We're going to move now down to Blackhall. This is lot number two.
0:36:21 > 0:36:24Two bed, end-terraced house.
0:36:24 > 0:36:27It's got the off street parking, solid fuel heating,
0:36:27 > 0:36:29enclosed garden and a yard.
0:36:29 > 0:36:34We've got this in with a price guide of £19,950 plus.
0:36:34 > 0:36:36Can I ask for £20,000 to start anywhere?
0:36:36 > 0:36:39£20,000 on the left-hand side. 22? 22 bid.
0:36:39 > 0:36:4524? 24 bid. 26? 26 far right.
0:36:45 > 0:36:4728? 28 bid. 30.
0:36:47 > 0:36:50No? I will take one if it'll help.
0:36:50 > 0:36:56Lady standing, £29,000. 30. 31? 31 bid.
0:36:57 > 0:37:0232? 32 bid. 33? I'll take 500.
0:37:02 > 0:37:0632,500 bid. 33 new bidder. 33,500? No?
0:37:06 > 0:37:1233,500 bid. 34? 34 bid. 34,500?
0:37:12 > 0:37:1334,500 bid on the telephone.
0:37:13 > 0:37:1635? 35 bid.
0:37:16 > 0:37:1835 in the room. Are you both out on the phone?
0:37:18 > 0:37:2135,500 from either? No?
0:37:21 > 0:37:24I am selling once at 35, and I am going quick.
0:37:24 > 0:37:27I'm selling for the second time at £35,000.
0:37:27 > 0:37:30Sold to the gentleman on the right-hand side.
0:37:30 > 0:37:32That final bid of £35,000 was made by Kami,
0:37:32 > 0:37:35who was at the auction with his daughter.
0:37:35 > 0:37:38High-fives all round.
0:37:38 > 0:37:44Kami is a property developer from Newcastle with a large portfolio.
0:37:44 > 0:37:45He has been on the programme before
0:37:45 > 0:37:48when he bought another property in Blackhall.
0:37:51 > 0:37:54I met up with him back at his latest purchase
0:37:54 > 0:37:57to hear about his plans for it.
0:37:57 > 0:38:02- Kami, great to see you...again! - Time flies.- It does indeed.
0:38:02 > 0:38:06- How did you get on with the last project? How did it go?- Good.
0:38:06 > 0:38:09It's done and dusted. The tenants have moved in and are happy.
0:38:09 > 0:38:12- So, you're obviously a fan of the area.- I love the area.
0:38:12 > 0:38:15Blackhall's the place to be, nice people. That's the main thing.
0:38:15 > 0:38:17Tell me why you wanted to buy this house?
0:38:17 > 0:38:19This is the posh end of Blackhall.
0:38:19 > 0:38:21Where you went last time was the colliery's.
0:38:21 > 0:38:25They were built for the men down the mines. This is the top end,
0:38:25 > 0:38:27this is the posh end.
0:38:27 > 0:38:30- Remind me how many properties do you have?- I've lost count.
0:38:30 > 0:38:34- More than 10, less than 100? - Something like that.
0:38:34 > 0:38:39Kami's been a property developer for over 10 years
0:38:39 > 0:38:40and frequently buys
0:38:40 > 0:38:43both commercial and residential properties at auction.
0:38:43 > 0:38:48He has a team of tradesmen he uses to carry out quick refurbishments.
0:38:48 > 0:38:52So, this one in the posh bit, apart from that, why this house?
0:38:52 > 0:38:57To be honest, I had never seen it. This is the first time I've seen it.
0:38:57 > 0:38:59I saw it advertised as a two-bedroom and freehold.
0:38:59 > 0:39:02Had you looked into it before the auction?
0:39:02 > 0:39:05- I got the papers, the magazine. - Had you read the legal pack?
0:39:05 > 0:39:08- I never read the legal pack.- Oh! - Isn't that bad?- Yes.
0:39:08 > 0:39:10But I buy them all in the same area,
0:39:10 > 0:39:13all legal packs are the same if you buy in the same area.
0:39:13 > 0:39:17- Not necessarily. - Is it not?- No.- Ah, well.
0:39:17 > 0:39:22Kami is pretty laid-back about buying property
0:39:22 > 0:39:26and doesn't seem to worry about taking a chance.
0:39:26 > 0:39:30# Breaking the rules
0:39:30 > 0:39:37# Reckless and taking chances just the same. #
0:39:37 > 0:39:40Essentially, this is a good basic house
0:39:40 > 0:39:42but you could change the layout.
0:39:42 > 0:39:46So, will Kami be getting his sledgehammer out?
0:39:46 > 0:39:48What are you going to do to sort it out?
0:39:48 > 0:39:52A total refurb. Windows, doors, kitchen, floor and bathroom.
0:39:52 > 0:39:55What about layout? Is that big wall behind me coming down?
0:39:55 > 0:39:58No, I never take any walls down. Keep them all in.
0:39:58 > 0:40:01Once you start taking walls out, you're talking major work.
0:40:01 > 0:40:03It's a strange situation with a very small
0:40:03 > 0:40:05bedroom and a big bedroom.
0:40:05 > 0:40:07Have you thought about equalising the sizes?
0:40:07 > 0:40:10No, I'm going go leave them the way they are.
0:40:10 > 0:40:12So, what sort of budget have you got for this one?
0:40:12 > 0:40:15I think 12 to 13,000 max.
0:40:15 > 0:40:18- Eight week turnaround.- Eight weeks?
0:40:18 > 0:40:19- So, a bit longer for this one?- Yeah.
0:40:19 > 0:40:22I think some of the back walls need taking out,
0:40:22 > 0:40:26- which might take a couple of weeks. - Right!
0:40:26 > 0:40:29Ah! So, some walls will be coming down after all.
0:40:29 > 0:40:34Kami's taking a cautious route here by not over-spending.
0:40:34 > 0:40:36After all - these ARE tough times.
0:40:36 > 0:40:39But that's not holding HIM back.
0:40:39 > 0:40:42Nobody's got any money, have they? And prices are dropping.
0:40:42 > 0:40:45If you can borrow money, it's time to buy really.
0:40:45 > 0:40:49- And rent's pretty good.- Rents are still the same. £400, 440 a month.
0:40:49 > 0:40:51And this one will get a little bit more rent?
0:40:51 > 0:40:53No, I'll charge the same.
0:40:53 > 0:40:56- Even though it's the posh bit? - Even though it's the posh bit!
0:40:56 > 0:41:00Kami has found a niche at the more affordable end of the housing market
0:41:00 > 0:41:03and it's a strategy that's served him well.
0:41:04 > 0:41:07So, how was the auction? Were you happy with what you paid for it?
0:41:07 > 0:41:09Yeah. I thought it was a really good price.
0:41:09 > 0:41:11I thought it might have gone for about 50.
0:41:11 > 0:41:13I was quite prepared to go to 50.
0:41:13 > 0:41:15And what do you put the low price down to?
0:41:15 > 0:41:17Cos it's a lot of house for the money, isn't it?
0:41:17 > 0:41:20I think it's just luck at the end of the day. Sometimes you can go to
0:41:20 > 0:41:23the auction and get nothing. The last one I bought was a proper bargain.
0:41:23 > 0:41:26As opposed to this, which is just a medium bargain?
0:41:26 > 0:41:28Last one was 27 grand for a two-bedroom house with a garden.
0:41:28 > 0:41:30- Right!- That's a bargain, isn't it?
0:41:30 > 0:41:32- A proper bargain. - A proper bargain, that!
0:41:32 > 0:41:35# I call that a bargain
0:41:35 > 0:41:39# The best I ever had. #
0:41:39 > 0:41:43Kami might believe that the £35,000 he paid for this house
0:41:43 > 0:41:46isn't such a bargain but, considering its condition,
0:41:46 > 0:41:48I reckon that's exactly how it looks.
0:41:50 > 0:41:55So, another property in Kami's property portfolio cap
0:41:55 > 0:41:57and, once again, breaking all the rules -
0:41:57 > 0:42:00not reading the legal pack, not visiting beforehand.
0:42:00 > 0:42:04You can get away with it but if it goes wrong, it goes wrong big time.
0:42:04 > 0:42:06How will he get on sorting this place out?
0:42:06 > 0:42:08You can find out later in the show.
0:42:11 > 0:42:15Once you've bought your property, the hard work really starts,
0:42:15 > 0:42:19and you have to be prepared for some surprises along the way.
0:42:19 > 0:42:22So, have our buyers unearthed any hidden treasures,
0:42:22 > 0:42:25or uncovered any pitfalls? Let's find out.
0:42:28 > 0:42:31We return now to the East Midlands village of Borrowash,
0:42:31 > 0:42:35a suburb of the city of Derby, where Rob had bought this two-bed,
0:42:35 > 0:42:39semi-detached bungalow for £100,500.
0:42:41 > 0:42:45He lives 75 miles away in Newport Pagnell near Milton Keynes,
0:42:45 > 0:42:48where he works, self-employed, doing property maintenance.
0:42:49 > 0:42:53But he was attracted to the property prices in Derby.
0:42:53 > 0:42:56His girlfriend Camilla is a trained architect and set designer,
0:42:56 > 0:42:59currently doing admin work.
0:42:59 > 0:43:02But her skills were going to come in handy for Rob
0:43:02 > 0:43:05as he planned to refurbish the bungalow.
0:43:05 > 0:43:07He hoped to make £10,000 profit,
0:43:07 > 0:43:11which he'd reinvest into another property.
0:43:11 > 0:43:13So, tell me what you're going to do to this place to sort it out.
0:43:13 > 0:43:16Basically, a complete refurbishment from top to bottom.
0:43:16 > 0:43:19New kitchen, new bathroom, central heating,
0:43:19 > 0:43:24change the boiler, it's got radiators, decoration, carpets.
0:43:24 > 0:43:26And how are you going to do that when you live 75 miles away?
0:43:26 > 0:43:30Cos I'm going to be up here during the weeks on a Monday,
0:43:30 > 0:43:33staying here till Friday, and going back for weekends.
0:43:33 > 0:43:36# I just stay
0:43:36 > 0:43:39# A long way from home. #
0:43:41 > 0:43:46Rob set a budget of £8-10,000 and was going to take a six-week break
0:43:46 > 0:43:49from his normal business to concentrate on the bungalow.
0:43:51 > 0:43:53Well, seven weeks later, we're back.
0:43:55 > 0:43:58The old paving slabs have been replaced by new shingle,
0:43:58 > 0:44:00which gives a much improved kerb appeal.
0:44:03 > 0:44:08I'm not sure if I like the bathroom being the first room that greets you
0:44:08 > 0:44:12in the hall, but I do approve of Rob's new suite and choice of tiles.
0:44:17 > 0:44:18At the front of the bungalow,
0:44:18 > 0:44:21Rob's gone for a classic, neutral colour scheme
0:44:21 > 0:44:22in the front bedroom.
0:44:25 > 0:44:29Replacing these dark doors has made such a difference throughout.
0:44:30 > 0:44:34The neutral tone continues in the master bedroom.
0:44:35 > 0:44:37It's no coincidence
0:44:37 > 0:44:40that so many new-builds go down that route as well.
0:44:43 > 0:44:46And it's the look Rob's chosen for the lounge as well.
0:44:48 > 0:44:52So in here, I stripped off all the wallpaper that was woodchip,
0:44:52 > 0:44:57painted magnolia walls, white ceiling, white doors, white skirting
0:44:57 > 0:44:59and had a neutral carpet fitted.
0:44:59 > 0:45:01The lounge and the whole house,
0:45:01 > 0:45:04I'm really pleased with how it's turned out. I really like it.
0:45:04 > 0:45:09The bungalow has been rewired and Rob's invested in quality sockets,
0:45:09 > 0:45:12which add to the overall polished effect.
0:45:12 > 0:45:15OK, so the kitchen is not massive but, again,
0:45:15 > 0:45:17he's maximised what was here.
0:45:19 > 0:45:23So, in the kitchen, all new cupboards, new tiles,
0:45:23 > 0:45:26new hob, new oven, new flooring,
0:45:26 > 0:45:31and this cupboard was a problem before because the worktop
0:45:31 > 0:45:36couldn't come across in front of it, and so I made the doors to suit.
0:45:36 > 0:45:39I'm very pleased with how the kitchen's turned out.
0:45:39 > 0:45:43Apart from the odd day off and a week's work back in Newport Pagnell,
0:45:43 > 0:45:47Rob and his friend, Ash, have worked five days a week on the bungalow.
0:45:47 > 0:45:51So he did only take six weeks as he'd planned.
0:45:51 > 0:45:53He had to employ a qualified electrician
0:45:53 > 0:45:55and gas fitter for the boiler.
0:45:55 > 0:45:58How much design input has Camilla been able to give?
0:45:58 > 0:46:01Well, I thought I might be able to have a bit of input with
0:46:01 > 0:46:03the design but, to be honest,
0:46:03 > 0:46:06I think you had that all sussed anyway.
0:46:08 > 0:46:10It seems Rob's got a good eye for design.
0:46:10 > 0:46:13He wants to dress the bungalow as a new-build show house.
0:46:15 > 0:46:17I thought when you buy a new house,
0:46:17 > 0:46:21the house is dressed as if you could move straight in, so I thought,
0:46:21 > 0:46:25without going too far, I wanted to give that look. So I bought
0:46:25 > 0:46:30some second-hand furniture and a few cushions and things to dress
0:46:30 > 0:46:33the house cos I thought that'd help make it sell.
0:46:33 > 0:46:36It has such a nice feeling to it. And I like all the colours.
0:46:36 > 0:46:38You've done purples and beiges and soft blues.
0:46:38 > 0:46:42I'm quite impressed actually with what he's done.
0:46:42 > 0:46:46Outside, Rob's tidied up the garden but has decided to leave
0:46:46 > 0:46:49the asbestos garage as it wasn't damaged
0:46:49 > 0:46:51and will be useful storage space.
0:46:53 > 0:46:55How much has the work cost?
0:46:55 > 0:46:59Did Rob manage to stick to his £8-10,000 budget?
0:46:59 > 0:47:03I've come in at 10,000. So on budget.
0:47:03 > 0:47:08That takes Rob's total investment here to £110,500.
0:47:10 > 0:47:14Time to hear what the auctioneer who sold it and viewed it originally
0:47:14 > 0:47:18and another local property expert think of the finished bungalow.
0:47:20 > 0:47:23The change is quite dramatic from when I last saw it.
0:47:23 > 0:47:26It's tidy, clean and very appealing.
0:47:26 > 0:47:30The look of it is pretty well what I expect. The finish looks good.
0:47:30 > 0:47:34It's obviously been done to appeal to a certain market,
0:47:34 > 0:47:38which is fine, and I think it's been pretty successfully done.
0:47:38 > 0:47:41This is a nice location. It's a quiet cul-de-sac.
0:47:41 > 0:47:44It would appeal to all markets but probably,
0:47:44 > 0:47:46because it's a bungalow, mainly older people.
0:47:46 > 0:47:51So what rental potential can these two local property experts
0:47:51 > 0:47:54predict for the bungalow? How much income could it generate?
0:47:54 > 0:47:56I think they would be able to rent it
0:47:56 > 0:47:59in the region of £550 per calendar month.
0:47:59 > 0:48:04The rental value would be about £525, £550 a calendar month.
0:48:04 > 0:48:10So a rental yield of over 5.5% if Rob decided to let
0:48:10 > 0:48:12but his plan has always been to sell.
0:48:12 > 0:48:14So, how much is the bungalow now worth?
0:48:14 > 0:48:18More than the £110,500 he's invested here?
0:48:20 > 0:48:25An appropriate asking price would be around £139,950.
0:48:25 > 0:48:29I would estimate selling it in the region of £140,000.
0:48:29 > 0:48:32The top valuation only differs by 50 quid,
0:48:32 > 0:48:38so Rob could make a profit of around £29,500 before taxes and expenses.
0:48:40 > 0:48:41Spot-on.
0:48:41 > 0:48:45That's what I thought, that's what I hoped for, so very pleased.
0:48:45 > 0:48:49Considering he was hoping to come out with a £10,000 gross profit
0:48:49 > 0:48:52to carry forward to his next project, it sounds like
0:48:52 > 0:48:56there could be another £19,500 to put into the equation.
0:48:56 > 0:49:00- This was a good scale project for you, wasn't it?- Yes.
0:49:00 > 0:49:03Not too big cos you've got other work to do and you can make a little
0:49:03 > 0:49:06bit more money every time, and it will just grow and grow.
0:49:06 > 0:49:10Like Camilla, I think Rob's being very sensible to start small
0:49:10 > 0:49:11and think big.
0:49:13 > 0:49:19I'd like to become a developer and I'd like to do three or four a year.
0:49:26 > 0:49:29Earlier in the programme we visited the north-east of England.
0:49:29 > 0:49:32With its beautiful beach, it's no surprise that the former
0:49:32 > 0:49:35mining village of Blackhall is popular with commuters,
0:49:35 > 0:49:38as it also offers good road links to the nearby A1.
0:49:40 > 0:49:45It was at this end-of-terrace that we met or rather re-met Kami,
0:49:45 > 0:49:47a property developer who has featured on
0:49:47 > 0:49:50Homes Under The Hammer previously.
0:49:50 > 0:49:54This time around, he'd paid £35,000 for this house
0:49:54 > 0:49:57to add to his growing buy-to-let portfolio.
0:49:57 > 0:50:02Kami likes to take a high-risk strategy approach to property.
0:50:02 > 0:50:05- Did you read the legal pack?- I never read the legal pack. Isn't that bad?
0:50:05 > 0:50:07Yes!
0:50:07 > 0:50:08But I buy them all the time in the area
0:50:08 > 0:50:11and all the legal facts are the same if you buy in the same area.
0:50:11 > 0:50:14- Not necessarily.- Isn't it?- No!
0:50:14 > 0:50:15Oh, well.
0:50:15 > 0:50:18Boy! Fortunately Kami does have expertise
0:50:18 > 0:50:22and a team of reliable builders to do all the work.
0:50:22 > 0:50:24His plan was to replace the kitchen and bathroom
0:50:24 > 0:50:28and decorate throughout, but not much else.
0:50:28 > 0:50:30What about layout?
0:50:30 > 0:50:32You've got a big wall behind me. Is that coming out?
0:50:32 > 0:50:34No, I never take any walls out.
0:50:34 > 0:50:38Once you start taking walls out, you're talking major work.
0:50:38 > 0:50:41Kami had set a budget of £12-£13,000
0:50:41 > 0:50:43and eight weeks to do the work.
0:50:45 > 0:50:47But it's now 17 weeks later,
0:50:47 > 0:50:51and we've returned to see the completed property.
0:50:53 > 0:50:56The house has a new front door and porch.
0:50:56 > 0:50:59The garden's had a tidy-up but is still work in progress.
0:51:03 > 0:51:07At the back, Kami's kitchen is a real eye-opener.
0:51:08 > 0:51:12He's chosen mid-range units and appliances, which look good.
0:51:14 > 0:51:18And losing units from one wall does make the room feel bigger.
0:51:19 > 0:51:25The laminate flooring through to the living room opens the house up too.
0:51:25 > 0:51:28And that dated fireplace went to the skip.
0:51:30 > 0:51:34The new bathroom suite includes a shower and it works well.
0:51:36 > 0:51:40Beside the kitchen was a timber extension known locally
0:51:40 > 0:51:44as an off-shot, but Kami decided there was only one type
0:51:44 > 0:51:47of timber he wanted outside the back door.
0:51:47 > 0:51:50The decking, we got in because we got rid of the off-shot
0:51:50 > 0:51:52and it was wasting time not doing anything.
0:51:52 > 0:51:54We knocked it down and we put the decking in.
0:51:54 > 0:51:58It was quick, it was easy. Took about three or four hours to put it in.
0:51:58 > 0:52:02In the summertime, it's really nice when the sun's shining,
0:52:02 > 0:52:05- you can get your deckchairs out and just chill.- Yes.
0:52:05 > 0:52:09Pop a few flowerpots out there, get the barbie on the go
0:52:09 > 0:52:10and it could be very nice.
0:52:12 > 0:52:15The work's taken around 12 weeks but the start was delayed
0:52:15 > 0:52:18as Kami needed to get the gas supply relocated.
0:52:18 > 0:52:21This is the gas meter which was originally in the kitchen.
0:52:21 > 0:52:23It took 12 weeks for the guys to come and change the gas meter
0:52:23 > 0:52:26from the kitchen to outside. Apart from that - no delays.
0:52:26 > 0:52:28That was the only thing that kept us back.
0:52:28 > 0:52:31As well as the new back door,
0:52:31 > 0:52:33the rear windows have also been replaced.
0:52:36 > 0:52:39And upstairs, the neutral colour scheme continues.
0:52:41 > 0:52:46Kami has installed new central heating and had a new combi boiler
0:52:46 > 0:52:47put in the big bedroom.
0:52:47 > 0:52:51However, I don't think that's an ideal position as, even if
0:52:51 > 0:52:54you follow all the regulations and have a carbon monoxide alarm,
0:52:54 > 0:52:57there's the noise issue.
0:52:57 > 0:52:58Also, apart from anything else,
0:52:58 > 0:53:01it's not the most attractive bedroom feature.
0:53:01 > 0:53:04I think he'd have been far better off putting it in the kitchen
0:53:04 > 0:53:06and after all, there is room now.
0:53:06 > 0:53:09But what about the problem with that hole in the ceiling
0:53:09 > 0:53:11in the front bedroom?
0:53:11 > 0:53:14There was a hole in the ceiling upstairs in the main bedroom.
0:53:14 > 0:53:17The guy I bought the house off did fix the hole but never skimmed
0:53:17 > 0:53:21the ceiling, so we skimmed the full room so we got rid of the hole.
0:53:21 > 0:53:23The house has been rewired throughout,
0:53:23 > 0:53:27and all the walls have been skimmed. But in the smaller rear bedroom,
0:53:27 > 0:53:32it's still going to be a challenge to squeeze in much more than a bed.
0:53:32 > 0:53:36Kami always uses local tradesmen on his property refurbishments,
0:53:36 > 0:53:40so what skills did his team bring to this project?
0:53:40 > 0:53:45I've got a plumber, electrician, a joiner, plasterer,
0:53:45 > 0:53:48and a painter as well. They're called the BBC - Bad Boy Crew.
0:53:48 > 0:53:52They're a good set of lads and they've been with us for a while.
0:53:52 > 0:53:54How much has the refurbishment cost?
0:53:54 > 0:53:57Did Kami stick to his initial budget of 12 to 13,000?
0:53:59 > 0:54:01The budget I had was 11 grand for the house.
0:54:01 > 0:54:05I think I went about 300, 400 quid more. That's it - tops.
0:54:05 > 0:54:07Well that Bad Boy Crew have done him proud.
0:54:07 > 0:54:12He's come in under his initial budget, and that £11,400 he's spent
0:54:12 > 0:54:17takes his total investment here to £46,400.
0:54:19 > 0:54:22We invited two local estate agents to come
0:54:22 > 0:54:26and have a look at the house and the work that Kami's team have done.
0:54:26 > 0:54:28What are their impressions of it?
0:54:28 > 0:54:31First impressions of the property are quite good.
0:54:31 > 0:54:33It's been done to a moderate standard.
0:54:33 > 0:54:34Kitchen's good, bathroom's good
0:54:34 > 0:54:36and I'd expect it to rent out straight away.
0:54:36 > 0:54:38I particularly like the kitchen area.
0:54:38 > 0:54:41It has been refurbished to a good standard. It's a good size.
0:54:41 > 0:54:43Because there isn't a separate dining area,
0:54:43 > 0:54:46it's good that the owner has put a breakfast bar in there.
0:54:46 > 0:54:49There's a ceiling price with these properties,
0:54:49 > 0:54:52you can't go over that. If they spend too much money,
0:54:52 > 0:54:54it would've been a white elephant.
0:54:54 > 0:54:57I feel there are still some works to be done externally.
0:54:57 > 0:55:00The front garden area would be nice if it was laid to lawn
0:55:00 > 0:55:02and just finished off.
0:55:02 > 0:55:07Kami has £46,400 invested in the property so how much do
0:55:07 > 0:55:10the estate agents think the house could sell for
0:55:10 > 0:55:11if it was put up for sale?
0:55:11 > 0:55:15I would advise to put it on the market for £65,000.
0:55:15 > 0:55:17If I was to place the property on the market currently,
0:55:17 > 0:55:20I would look to market it at offers around £70,000.
0:55:20 > 0:55:25That valuation range of 65 to 70,000 would generate a gross profit
0:55:25 > 0:55:31of between £18,600 and £23,600 before taxes and expenses.
0:55:31 > 0:55:34If you asked me before, that's exactly what I would've said.
0:55:34 > 0:55:3765 to 70. That's fair.
0:55:37 > 0:55:41But Kami's going to add this house to his growing buy-to-let portfolio.
0:55:41 > 0:55:43He's already got a tenant lined up,
0:55:43 > 0:55:45so what sort of rent could he be charging?
0:55:45 > 0:55:48If the owner's looking to put the property on the rental market,
0:55:48 > 0:55:52I'd hope for it to achieve somewhere around £450 per calendar month.
0:55:52 > 0:55:57I would suggest to put the property on for rental at around £450
0:55:57 > 0:55:59per calendar month.
0:55:59 > 0:56:04Those rentals would yield over 11.5% on Kami's investment.
0:56:04 > 0:56:08So, is his tenant paying over £450 a month?
0:56:08 > 0:56:12I've done it for 440, 110 quid a week. My tenant is nice, young lady.
0:56:12 > 0:56:16She's moving in later today. She is very, very happy with the property.
0:56:16 > 0:56:18And so is Kami.
0:56:18 > 0:56:21It looks as though his high-risk strategy of not looking
0:56:21 > 0:56:24at the property before purchasing it has paid off again,
0:56:24 > 0:56:27but, please, don't try this at home.
0:56:27 > 0:56:30Clearly he's going to continue in his own sweet way,
0:56:30 > 0:56:34and see a silver lining in today's tougher property market.
0:56:34 > 0:56:37Since filming, he's bought another three properties.
0:56:37 > 0:56:40While the properties are cheap, I can't help buying them.
0:56:40 > 0:56:43Even though I don't want to buy a property, the estate agent
0:56:43 > 0:56:46rings me up and says, "I've got this for sale," and I just can't say no.
0:56:46 > 0:56:47The Bad Boy Crew love it as well
0:56:47 > 0:56:50cos they've always got work to do, so it's all good.
0:56:52 > 0:56:55We hope you've enjoyed watching Homes Under The Hammer.
0:56:55 > 0:56:59We will have more stories from the auction rooms for you next time.
0:56:59 > 0:57:02- Look forward to seeing you then. - Goodbye.- Goodbye.
0:57:20 > 0:57:23Subtitles by Red Bee Media Ltd