0:00:02 > 0:00:06In today's more challenging market, do you think you could hack it in the world of property?
0:00:06 > 0:00:09It can be an exciting way to earn money.
0:00:09 > 0:00:11And it can be even more rewarding
0:00:11 > 0:00:13if you buy your home under the hammer.
0:00:38 > 0:00:41There are tense moments in the auction room,
0:00:41 > 0:00:44who will make the right bid at the right time?
0:00:44 > 0:00:47Oh, yes, properties can change people's fortune for ever,
0:00:47 > 0:00:49for better or for worse.
0:00:49 > 0:00:53Here's what inspired our buyers on today's show.
0:00:54 > 0:00:58'First up, I'm feeling waves of nostalgia at this house in Cumbria.'
0:00:58 > 0:01:03Do you remember these telephones? Oh, the noise, the dialling, ah.
0:01:05 > 0:01:09'In Cardiff, it's waves of colour that are crashing over me.'
0:01:09 > 0:01:14Wow, look at the pink paint in this flat.
0:01:14 > 0:01:18'But I'm still stuck in the past at this property in Devon.'
0:01:18 > 0:01:22The old serving hatch here, therefore,
0:01:22 > 0:01:24through here, the kitchen.
0:01:25 > 0:01:27'All these properties went to auction,
0:01:27 > 0:01:29'we'll find out who bought them,
0:01:29 > 0:01:32'and what they paid when they went under the hammer.'
0:01:32 > 0:01:33It's yours, sir.
0:01:36 > 0:01:39Today, I'm in Dalton-in-Furness,
0:01:39 > 0:01:43the ancient and historical capital of the area.
0:01:43 > 0:01:46It's got its own 14th century castle,
0:01:46 > 0:01:50a tower house that was built by the Abbot Furness.
0:01:53 > 0:01:55Dalton is less than 30 miles from the Lake District
0:01:55 > 0:01:58and is a quiet but charming Cumbrian town.
0:02:02 > 0:02:06Well, close to the town centre, in a really popular area,
0:02:06 > 0:02:08is the property I'm here to see.
0:02:08 > 0:02:12There, it's not a tower house, but a townhouse.
0:02:12 > 0:02:15In this lovely, elevated position, three bedrooms,
0:02:15 > 0:02:21at a guide price of £65,000 plus, sounds quite cheap.
0:02:21 > 0:02:22Let's take a look.
0:02:23 > 0:02:26'The property sits on a hill overlooking the town,
0:02:26 > 0:02:29'which makes for a very pleasant view,
0:02:29 > 0:02:32'so, will be inside of the house be as pleasing to the eye?'
0:02:35 > 0:02:37Ah, ah, nice entrance hallway here, and straight away,
0:02:37 > 0:02:40I'm seeing these lovely little features.
0:02:40 > 0:02:43I hope the rest of the house is similar.
0:02:43 > 0:02:47And, oh, look at that, do you remember these telephones?
0:02:47 > 0:02:50Oh, the noise, and the dialling, oh, fantastic.
0:02:50 > 0:02:52And I suppose if you buy the house, you get that as well.
0:02:52 > 0:02:54Absolutely perfect.
0:02:54 > 0:02:58But through into a rear living room area here, kitchen at the back,
0:02:58 > 0:03:01where you might expect it to be,
0:03:01 > 0:03:03and then a really nice bay fronted window there.
0:03:05 > 0:03:07That's not good.
0:03:07 > 0:03:10That, really isn't, oh, my word.
0:03:10 > 0:03:12As you walk towards this corner of the property
0:03:12 > 0:03:15at the front here, you actually feel yourself walking downhill.
0:03:15 > 0:03:19There is something seriously nasty going on in this corner.
0:03:19 > 0:03:24Lots of cracking around the ceiling there.
0:03:24 > 0:03:26Wow, I need to investigate upstairs.
0:03:30 > 0:03:32That damage could be the sign of subsidence,
0:03:32 > 0:03:36which could be disastrous. And with those sloping floor boards,
0:03:36 > 0:03:39I certainly don't think this would ever be a great billiard room.
0:03:39 > 0:03:42So, are there any more surprises upstairs?
0:03:44 > 0:03:46Let's see what else there is,
0:03:46 > 0:03:48first, though, there's a bathroom and toilet there,
0:03:48 > 0:03:52it's a good sized space. Rear bedroom, again, not bad.
0:03:52 > 0:03:56But this is the room I'm really interested in, front bedroom,
0:03:56 > 0:03:58and, oh, yes, oh, boy,
0:03:59 > 0:04:02uh, it's upstairs as well, not surprisingly.
0:04:02 > 0:04:06There's plaster coming off, lots of cracks,
0:04:06 > 0:04:09I mean, it seems like this corner of the property has sunk,
0:04:09 > 0:04:11for whatever reason, maybe drains,
0:04:11 > 0:04:13maybe water ingress, maybe subsidence.
0:04:13 > 0:04:16Whatever happens, you need a survey.
0:04:16 > 0:04:19Oh, boy, you certainly do.
0:04:34 > 0:04:36That survey will be very interesting,
0:04:36 > 0:04:39as the big loft area at the top of the house
0:04:39 > 0:04:41could do with a few checks too.
0:04:41 > 0:04:44But it's a fantastic space. With a clever bit of renovation
0:04:44 > 0:04:47it could give you a fourth bedroom in this house.
0:04:47 > 0:04:52But unfortunately, at the back, the garden doesn't offer as much space.
0:04:58 > 0:05:00Well, at the rear of the property,
0:05:00 > 0:05:03if you're expecting an extensive garden,
0:05:03 > 0:05:05you're going to be slightly disappointed.
0:05:05 > 0:05:07There is, in fact, this very small, little courtyard area,
0:05:07 > 0:05:12but really good news, there is also a garage.
0:05:12 > 0:05:17Now, parking around here is not easy, so having this is a real bonus.
0:05:24 > 0:05:27So, the lack of outside space is made up for by the garage,
0:05:27 > 0:05:30which provides valuable off-street parking.
0:05:30 > 0:05:33This property has a lot going for it,
0:05:33 > 0:05:36whilst I'm concerned about the potential subsidence issues,
0:05:36 > 0:05:40with a guide price of £65,000, I think, in the right hands,
0:05:40 > 0:05:42there could be money to be made here.
0:05:42 > 0:05:45But, does a local property expert agree?
0:05:45 > 0:05:49We asked the auctioneer who sold it for his thoughts on the place.
0:05:49 > 0:05:53The positives of this property is its proximity to the town centre,
0:05:53 > 0:05:56within short walking distance.
0:05:56 > 0:05:59It has a good number of rooms, good-sized rooms,
0:05:59 > 0:06:01and great potential.
0:06:02 > 0:06:05It does need a programme of modernisation,
0:06:05 > 0:06:08so, there's a lot of work to do, not for the fainthearted,
0:06:08 > 0:06:11but it's a good, substantial property.
0:06:11 > 0:06:15Once refurbished, in pristine condition,
0:06:15 > 0:06:19I would expect it to achieve in excess of £120,000.
0:06:20 > 0:06:24That's a fantastic £55,000 over the guide price of 65,000,
0:06:24 > 0:06:30but what could it achieve if the buyer decided to let it out?
0:06:30 > 0:06:33Once fully renovated, this property would achieve,
0:06:33 > 0:06:37on the rental market, a sum of £450 per calendar month.
0:06:39 > 0:06:43Well, there are lots of really positive things about this property,
0:06:43 > 0:06:45the location, I like the elevated position,
0:06:45 > 0:06:48I like the layout inside, I like the garage.
0:06:48 > 0:06:52But that serious subsidence, or whatever it is,
0:06:52 > 0:06:57it would put a lot of people off, including, possibly, me.
0:06:57 > 0:07:00Let's see who fancied the challenge when it went under the hammer.
0:07:00 > 0:07:02Lot number six, ladies and gentlemen,
0:07:02 > 0:07:06we're off down to Dalton-in-Furness, a lovely spot.
0:07:06 > 0:07:08At £60,000, am I bid?
0:07:08 > 0:07:12At £60,000, anywhere? 60, I've got, at £60,000 we're away.
0:07:12 > 0:07:1561, anyone? 61, I've got.
0:07:15 > 0:07:18And two, may I see? 62, 63?
0:07:20 > 0:07:2163, I've got.
0:07:21 > 0:07:2364? 65?
0:07:23 > 0:07:2466?
0:07:24 > 0:07:27Shake of the head, with you at 65.
0:07:27 > 0:07:29Do I see 66 anywhere?
0:07:29 > 0:07:32At £65,000, I'm done.
0:07:32 > 0:07:33At 65, then,
0:07:33 > 0:07:35first time,
0:07:35 > 0:07:37at 65, second time.
0:07:40 > 0:07:44Not got it, very close, not there. Come and see us afterwards, sir.
0:07:44 > 0:07:46Client might go a bit more.
0:07:46 > 0:07:49Unfortunately, the bidding didn't go past the reserve price,
0:07:49 > 0:07:52so it failed to sell on auction day.
0:07:52 > 0:07:54But it was bought afterwards by Julie,
0:07:54 > 0:07:58who wasn't even at the auction. Julie is a health and safety manager,
0:07:58 > 0:08:01who's been living in Australia for the last 20 years.
0:08:10 > 0:08:13Julie has several investment properties down under,
0:08:13 > 0:08:17and has returned to dip her toe in the UK market.
0:08:17 > 0:08:20I caught up with her back at the property to find out more.
0:08:20 > 0:08:22- Julie, lovely to meet you. - And you too.
0:08:22 > 0:08:25- Congratulations. - Thank you.
0:08:25 > 0:08:29- Tell me why you wanted to buy this place.- Um, I basically didn't.
0:08:29 > 0:08:31- I just found it on the internet. - Right.
0:08:31 > 0:08:34And I thought it was a pretty good buy,
0:08:34 > 0:08:36so, I rang up the auction people,
0:08:36 > 0:08:40and they said, if you meet the reserve then you can have it.
0:08:40 > 0:08:44- That's right, because you weren't at the auction, obviously.- No.
0:08:44 > 0:08:47- Tell me what happened. - I was actually looking at buying
0:08:47 > 0:08:50- a sandwich shop, and then... - Sandwich shop?- Yeah!
0:08:50 > 0:08:54But I decided that that was too much like hard work,
0:08:54 > 0:08:56so, I thought, I know property so,
0:08:56 > 0:09:00I found this on the net, just total fluke.
0:09:00 > 0:09:03- You were aware that it had gone to auction?- No.- You weren't aware?
0:09:03 > 0:09:05No, never heard of it before.
0:09:05 > 0:09:08And did the auctioneers tell you that it had been in the auction
0:09:08 > 0:09:09and hadn't sold?
0:09:09 > 0:09:12On the website it said that it was an unsold property.
0:09:12 > 0:09:15Did it concern you at all that it hadn't sold?
0:09:15 > 0:09:17And there might be a reason for that?
0:09:17 > 0:09:20A little bit, but there is a structural survey
0:09:20 > 0:09:22that came with it in the legal pack,
0:09:22 > 0:09:26so, I read that, and worked out that there wasn't too much to do,
0:09:26 > 0:09:29there's a bit, but nothing too scary.
0:09:29 > 0:09:32The legal pack wasn't available at the time of the auction,
0:09:32 > 0:09:35so that may have put off potential bidders.
0:09:35 > 0:09:39But, luckily, it was available for Julie. She scrutinised it,
0:09:39 > 0:09:42and found the damage was from a leaking downpipe,
0:09:42 > 0:09:45far less of a worry than subsidence.
0:09:45 > 0:09:48So, what work has she got planned here?
0:09:48 > 0:09:50There's a beam in the cellar that needs to be replaced,
0:09:50 > 0:09:55it's basically just a piece of wood, so, we need to put an RSJ in there.
0:09:55 > 0:09:58And then jack up the floors,
0:09:58 > 0:10:02and then basically, the rest of it is just a reno.
0:10:02 > 0:10:04Tell me what's involved in just jacking up the floors.
0:10:04 > 0:10:08Basically, you have to pick them all up,
0:10:08 > 0:10:13and you just jack them, so, basically putting a wedge in.
0:10:13 > 0:10:17- Right.- And making them level again, there's no subsidence,
0:10:17 > 0:10:19it's just basically sagged.
0:10:19 > 0:10:23I haven't decided whether we're going to do it ourselves, or get...
0:10:23 > 0:10:25- What do you mean, do it yourselves? - Yeah, we can do it.
0:10:25 > 0:10:27We being who?
0:10:27 > 0:10:30Myself and my family, because it's mostly labour,
0:10:30 > 0:10:34there's not a great deal of skill involved, it's mostly labour,
0:10:34 > 0:10:37so, I don't want to have to fork out lots of money for labour
0:10:37 > 0:10:38when we could do it ourselves.
0:10:46 > 0:10:49Lifting the floorboards isn't a job for the fainthearted,
0:10:49 > 0:10:54but Julie sounds confident that she and her family can do the work.
0:10:54 > 0:10:56No, she's not bringing them over from Australia,
0:10:56 > 0:10:58she was actually born in this country
0:10:58 > 0:11:00and still has family in the area.
0:11:00 > 0:11:04So, as well as the floors, what else will they be tackling?
0:11:04 > 0:11:08Some of the windows need replacing, a new kitchen, new bathroom,
0:11:08 > 0:11:11new walls, new plaster, doors.
0:11:11 > 0:11:15Everything. Central heating, there's no heating,
0:11:15 > 0:11:17there's actually no gas to the property,
0:11:17 > 0:11:19so I have to get the gas brought up as well.
0:11:19 > 0:11:22Julie has a plumber and an electrician on standby
0:11:22 > 0:11:28for the skilled work, and has set herself a budget of £20,000.
0:11:28 > 0:11:32- What kind of timescale?- 12 weeks. - 12 weeks?!
0:11:32 > 0:11:34- Yeah.- With a team of how many people?
0:11:34 > 0:11:38Um, well, we've got plumbers and electricians
0:11:38 > 0:11:41and people coming in, and then there's probably about four of us.
0:11:41 > 0:11:46Julie bought this property as an investment to add to her portfolio
0:11:46 > 0:11:49of six buy-to-let properties in Australia.
0:11:49 > 0:11:53She moved there 20 years ago, and has two sons over there.
0:11:53 > 0:11:55What's the plan, have you moved away from Australia?
0:11:55 > 0:12:01No, no, my boys are still there, I've still got property out there,
0:12:01 > 0:12:05probably next July, I think I might go back.
0:12:05 > 0:12:08The plan is to do six months in Australia, six months here.
0:12:08 > 0:12:10Where's the passion for property come from?
0:12:10 > 0:12:12I really don't know, no-one else in the family has it,
0:12:12 > 0:12:15they all live in their houses and they're quite happy,
0:12:15 > 0:12:19but I just love houses, I love renovating, and being involved.
0:12:19 > 0:12:21Well, listen, congratulations, good luck with it.
0:12:21 > 0:12:23Thank you very much.
0:12:23 > 0:12:25- I look forward to seeing how you get on.- Thank you.
0:12:33 > 0:12:38Well, Julie seems remarkably chipper and unfazed by the challenges ahead.
0:12:38 > 0:12:41But challenges there most certainly are,
0:12:41 > 0:12:43just raising the floor is not that easy,
0:12:43 > 0:12:46still, she's got her family to support her.
0:12:46 > 0:12:50How will she and the team get on? You can find out later in the show.
0:12:53 > 0:12:56I'm three miles from Cardiff city centre today
0:12:56 > 0:12:58in the suburb of Fairwater.
0:12:58 > 0:13:01The area has a good mix of affordable houses
0:13:01 > 0:13:04and benefits from plenty of local amenities,
0:13:04 > 0:13:06just a stone's throw from the Welsh capital.
0:13:07 > 0:13:10I'm here to see a two bedroomed flat,
0:13:10 > 0:13:14it's got its own allocated parking space, which is fab.
0:13:14 > 0:13:16Now, unfortunately, the outside of the block,
0:13:16 > 0:13:19well, it's looking a little bit shabby.
0:13:19 > 0:13:23But the guide price for this place was just £45,000,
0:13:23 > 0:13:27the last flat in this block sold for £60,000,
0:13:27 > 0:13:30and so, if it's in tip top condition on the inside,
0:13:30 > 0:13:32there could be some many to be made.
0:13:34 > 0:13:36The flat's on the second floor,
0:13:36 > 0:13:38although the exterior looks little worn out,
0:13:38 > 0:13:40it's nothing some paint and carpentry can't fix.
0:13:40 > 0:13:44It's worth finding out who is responsible for the maintenance,
0:13:44 > 0:13:47and whether there are service charges to pay.
0:13:52 > 0:13:55The communal entrance hall and stairwell
0:13:55 > 0:13:57could also do with freshening up.
0:13:57 > 0:14:00It's amazing how a lick of emulsion and some colour can make
0:14:00 > 0:14:02a place feel more welcoming, and talking of colour...
0:14:02 > 0:14:07Wow, look at the pink paint in this flat!
0:14:07 > 0:14:10But, the first thing that hits you between the eyes,
0:14:10 > 0:14:13it's filled to the brim with stuff that's been left here
0:14:13 > 0:14:16from the previous owners, so, before you start anything,
0:14:16 > 0:14:20get all of this lot out, so you can see what you've got here.
0:14:20 > 0:14:23You will need to do a renovation job on this,
0:14:23 > 0:14:28it's tired, it's dated, and over here, there's some damp in the corner
0:14:28 > 0:14:30which I would get looked at straightaway.
0:14:30 > 0:14:34Now, another piece of information, this flat is leasehold,
0:14:34 > 0:14:38which is perfectly acceptable, nothing untoward there at all.
0:14:38 > 0:14:42But the number of years left remaining is a problem.
0:14:42 > 0:14:45Because this will cause issues when it comes to securing finance.
0:14:45 > 0:14:49Now, unfortunately, there are only 78 years left,
0:14:49 > 0:14:52and that can put some lenders off,
0:14:52 > 0:14:57and, if the banks fail to supply the funds, you know what that means.
0:14:57 > 0:15:01# Money money, money, money. #
0:15:01 > 0:15:06Yes, it means finding the money, or you could come unstuck.
0:15:07 > 0:15:10A cash buyer could be the only way here.
0:15:10 > 0:15:12In a tricky economic climate,
0:15:12 > 0:15:16you really have to convince the lenders this is a sound investment.
0:15:16 > 0:15:18Any chink in the armour can go against you.
0:15:18 > 0:15:21But first things first, what does this flat have to offer?
0:15:21 > 0:15:25There are two adequate sized bedrooms,
0:15:25 > 0:15:28a decent sized bathroom in need of some upgrading,
0:15:28 > 0:15:31and a spacious living room with open plan kitchen.
0:15:31 > 0:15:33See past all the clutter,
0:15:33 > 0:15:35and you've got yourself a neat, little flat.
0:15:35 > 0:15:38But I'm still concerned about the short lease,
0:15:38 > 0:15:41and what it could mean for the purchaser.
0:15:41 > 0:15:44And so, here is the scenario.
0:15:44 > 0:15:47You've got the funds available to buy this for cash,
0:15:47 > 0:15:50brilliant, tick, so, no mortgage required.
0:15:50 > 0:15:51And you think to yourself,
0:15:51 > 0:15:55I want to renovate this and sell it on for a quick profit.
0:15:55 > 0:15:58Now, the short lease will make people nervous
0:15:58 > 0:16:00and it will put people off.
0:16:00 > 0:16:03So, you're forced to think about a lease renewal.
0:16:03 > 0:16:06Now, the costs will have to be negotiated between yourself
0:16:06 > 0:16:08and the freeholder, but here's the catch,
0:16:08 > 0:16:10you can't do any of that
0:16:10 > 0:16:14until you've owned the flat for at least two years.
0:16:14 > 0:16:17If you didn't know all of this prior to auction,
0:16:17 > 0:16:19well, you could really come unstuck.
0:16:19 > 0:16:23This is definitely one for those taking the long-term view
0:16:23 > 0:16:27and so renting this place out is the only way forward.
0:16:27 > 0:16:32At that guide price of 45,000, what will a local property expert think?
0:16:32 > 0:16:34We invited one along to find out.
0:16:36 > 0:16:39My personal view on the apartment at the moment, it's sad,
0:16:39 > 0:16:43and it needs freshening up, and a new lease of life.
0:16:43 > 0:16:47That's not the only lease that's required,
0:16:47 > 0:16:50how should the new owners proceed with the ticking clock
0:16:50 > 0:16:51that is the leasehold here?
0:16:51 > 0:16:55In my opinion, the new owners should, at this stage,
0:16:55 > 0:16:58consider renting for two years,
0:16:58 > 0:17:01qualifying under the Lease of Reform Act,
0:17:01 > 0:17:03applying for an extension,
0:17:03 > 0:17:06or, if the tenants also wish to purchase,
0:17:06 > 0:17:08to combine, and buy the freehold.
0:17:08 > 0:17:11Meanwhile, what can a property like this
0:17:11 > 0:17:13hope to achieve on the rental market?
0:17:13 > 0:17:19The apartment could be rented for £475 per calendar month.
0:17:19 > 0:17:22Once renovated, what could it fetch if sold on?
0:17:23 > 0:17:28In my opinion, this apartment, depending on its final finishes,
0:17:28 > 0:17:30could be placed on the market at £85,000.
0:17:30 > 0:17:35The exterior and the communal areas are very shabby,
0:17:35 > 0:17:39and, there is so much stuff in this flat to clear out, look at it.
0:17:39 > 0:17:44And I think that short lease is undoubtedly going to put people off.
0:17:44 > 0:17:47But for those taking the long-term view,
0:17:47 > 0:17:49I think this property will rent well,
0:17:49 > 0:17:51and it could be a good one to go for.
0:17:51 > 0:17:54Let's see who else thought so when it went under the hammer.
0:17:57 > 0:18:02Second floor flat in a purpose-built block of six, ladies and gentlemen.
0:18:02 > 0:18:0645, start me, bid me. 45.
0:18:06 > 0:18:0845,000 is all I'm bid.
0:18:08 > 0:18:11At 46 I'm bid, seven if you like now.
0:18:11 > 0:18:14At 46, it's your bid, at seven, thank you.
0:18:14 > 0:18:19At 47, 48, your bid at 48,000. Nine if you like now.
0:18:19 > 0:18:23Nine, thank you. 49 there, 50 there.
0:18:23 > 0:18:2451 in the back.
0:18:24 > 0:18:28At 51, two bidders, 52,000 is here.
0:18:28 > 0:18:33Three in the back, four, at 54, five, thank you.
0:18:33 > 0:18:37At 55, right behind, at 56,000 in the back, it's 57.
0:18:37 > 0:18:42Eight is coming now. 57,500, 58, was that a bid?
0:18:42 > 0:18:4550, half, 58 and a half, 59 in the back.
0:18:45 > 0:18:49At 59,000, thank you, at 59 and a half, thank you.
0:18:49 > 0:18:5260 taken in the back of the room. 60 and a half,
0:18:52 > 0:18:5561, if you like, sir, right in the back, 61, thank you.
0:18:55 > 0:18:59At 61, at 61, half if you like.
0:18:59 > 0:19:01Yes or no?
0:19:01 > 0:19:05At 61,000 in the back of the room, and we all done then at 61,000?
0:19:05 > 0:19:09It's yours, sir, standing in the striped shirt, number 48.
0:19:11 > 0:19:15With his successful bid of 61,000, the new owner is Darren.
0:19:15 > 0:19:18He owns and runs his own tiling and decorating business,
0:19:18 > 0:19:21'so, is perfectly placed to take this one on.
0:19:21 > 0:19:26In fact, he was responsible for painting the exterior of this very block
0:19:26 > 0:19:29some 21 years ago, when it was first built.
0:19:31 > 0:19:34- Darren, congratulations. Lovely to meet you.- Thank you.
0:19:34 > 0:19:37Tell me that this flat, why did you want to buy it?
0:19:37 > 0:19:39I had already bought in this area, so, I know the area,
0:19:39 > 0:19:41I've got a family who live here.
0:19:41 > 0:19:43It's a decent area.
0:19:43 > 0:19:46Been going to auctions, believe it or not, for 10 years, now.
0:19:46 > 0:19:49Um, first time I've actually acquired one.
0:19:49 > 0:19:52So, hold on, you've been going for 10 years,
0:19:52 > 0:19:54but this is the first time in 10 years you've ever bought?
0:19:54 > 0:19:56From an auction, yes.
0:19:56 > 0:19:58Really? Why is that?
0:19:58 > 0:20:00I have a budget and I stick to it,
0:20:00 > 0:20:02and sometimes you go into these auctions,
0:20:02 > 0:20:03and I think, with me,
0:20:03 > 0:20:06it's the one I've always wanted, everyone else has wanted.
0:20:06 > 0:20:10And once it's gone past the threshold that I'm happy with,
0:20:10 > 0:20:11then I just walk away.
0:20:11 > 0:20:17Being able to walk away from buying at an auction is an excellent mindset to have.
0:20:17 > 0:20:20If you can emotionally detach yourself from a property,
0:20:20 > 0:20:24as Darren seems to be able to do, then you don't run the risk of overspending.
0:20:31 > 0:20:34So, are you investing on your own?
0:20:34 > 0:20:38No, I'm investing with my business partner and our two wives.
0:20:38 > 0:20:41Generally I'm normally the one that does all the research.
0:20:41 > 0:20:44My business partner is very much hands-on, he likes to come in here.
0:20:44 > 0:20:46Once he sees this, he'll be so happy.
0:20:46 > 0:20:48He just loves getting his hands dirty.
0:20:48 > 0:20:50What are you going to do to really turn this place around?
0:20:50 > 0:20:54Mainly brighten it up, generally neutralise it,
0:20:54 > 0:20:59and allow the prospective tenants to maybe add their own little finishing touches.
0:20:59 > 0:21:01- New kitchen, new bathroom?- Yes.
0:21:01 > 0:21:02And how long do you think it will take?
0:21:02 > 0:21:05Would have been about two weeks but we are in the process
0:21:05 > 0:21:08of doing another property at the moment so it might stretch it to the four.
0:21:08 > 0:21:11Two to four weeks? I'm impressed.
0:21:11 > 0:21:15And something tells me he'll have his finances sorted, too.
0:21:15 > 0:21:19Let's talk about the budget and how much you plan on spending here.
0:21:19 > 0:21:22We're looking to spend between 3,000 and 4,000.
0:21:22 > 0:21:25I've got all the necessary contractors in place
0:21:25 > 0:21:28ready to get the kitchen fitted, the bathroom done,
0:21:28 > 0:21:31and obviously, after the decoration is done, getting the carpets down.
0:21:31 > 0:21:33You strike me as a man with a plan
0:21:33 > 0:21:36and I bet you're not going to go 1p over that, are you?
0:21:36 > 0:21:40- I won't go over 4,000, definitely not, no.- That's amazing.
0:21:40 > 0:21:42How are you so meticulous with it?
0:21:42 > 0:21:43Erm...
0:21:43 > 0:21:45It's years of running my own business.
0:21:45 > 0:21:48You have to keep your finger on the pulse
0:21:48 > 0:21:50and make sure you don't go past that budget.
0:21:50 > 0:21:53Otherwise it's pointless doing the work in the first place.
0:22:00 > 0:22:03That's great. He's definitely got his business hat on,
0:22:03 > 0:22:07which is exactly what needs to be done if it's to be a success.
0:22:07 > 0:22:09So, with that in mind,
0:22:09 > 0:22:12how does he plan to deal with that pesky lease issue?
0:22:14 > 0:22:15We're keeping this place for a while.
0:22:15 > 0:22:19It will be five to ten years so, ideally, yes, extend the lease
0:22:19 > 0:22:24so further on down the line when I do want to come to sell it, it opens the market to more people.
0:22:24 > 0:22:27Have you enquired as to how much money a lease will cost?
0:22:27 > 0:22:30At the moment I would say a few thousand pounds.
0:22:30 > 0:22:33If I leave it to when it gets under 70 years,
0:22:33 > 0:22:36it could go up to 10,000, maybe a little bit longer.
0:22:36 > 0:22:39It's definitely worth thinking about investing now, I think.
0:22:39 > 0:22:43- Oh, definitely, yes.- So what about the service charge on this property?
0:22:43 > 0:22:46That, I haven't got clarification on what it is.
0:22:46 > 0:22:50Solicitors at the moment - we've only just completed a couple of days ago -
0:22:50 > 0:22:54is obviously talking to the freeholder to try and sort that out.
0:22:54 > 0:22:58Ground rent is about £50 per year.
0:22:58 > 0:23:01The service charge, if you look at the outside of the place, you know,
0:23:01 > 0:23:06work has stopped being done on it for some reason or another,
0:23:06 > 0:23:08and we're trying to resolve that.
0:23:08 > 0:23:11You are in the perfect position to get involved here.
0:23:11 > 0:23:14Obviously you painted this 21 years ago.
0:23:14 > 0:23:16How do you feel about painting it all again?
0:23:16 > 0:23:18I've got no issues doing that.
0:23:18 > 0:23:21At the end of the day it's helping me.
0:23:21 > 0:23:25The brighter it looks...it's all well and good having a lovely flat once it's complete,
0:23:25 > 0:23:27but if you've got a bit of a shabby communals,
0:23:27 > 0:23:30as people walk through externals, it might put the odd person off.
0:23:30 > 0:23:34Darren and his partner certainly seem to have the right skills
0:23:34 > 0:23:36to be successful in this game,
0:23:36 > 0:23:40and with seven other buy-to-lets in the portfolio, it's just as well!
0:23:42 > 0:23:43So you must be pretty busy.
0:23:43 > 0:23:46The phone must ring on the occasional time?
0:23:46 > 0:23:48The washing machine has broken, there is a leak?
0:23:48 > 0:23:51Well we only started buying just under two years ago
0:23:51 > 0:23:54so most things are pretty new anyway.
0:23:54 > 0:23:56Very little issues, I have to say.
0:23:56 > 0:24:01We've been fortunate because when we do meet, we do them up quite well.
0:24:01 > 0:24:06I can't wait to see it when it's finished. Thank you, it's lovely to meet you today. Thanks.
0:24:06 > 0:24:11Diligent Darren is as thrifty as they come but I like his style.
0:24:11 > 0:24:13You know, it's the only way to make a success of property
0:24:13 > 0:24:15and he knows that.
0:24:15 > 0:24:19I've got no doubts he will refurbish this for £4,000,
0:24:19 > 0:24:23but will that service charge come as a nasty surprise?
0:24:23 > 0:24:25And there's no point having a wonderful interior
0:24:25 > 0:24:30if the exterior lets it down and you can't get tenants through the front door.
0:24:30 > 0:24:34You can find out what happens later on in the programme.
0:24:35 > 0:24:38Coming up, I see room for improvement in Devon.
0:24:38 > 0:24:41It's not bad, I really like the open plan feel to it,
0:24:41 > 0:24:45but it would be even better if there was a set of patio doors leading out there.
0:24:45 > 0:24:50Back in Cardiff, it sounds like it's all been plain sailing.
0:24:50 > 0:24:53Yeah, I suppose if every one was like this it would be an easy job
0:24:53 > 0:24:55but I suppose everyone would be doing it then!
0:24:56 > 0:24:59But first, problems under those floorboards in Cumbria.
0:24:59 > 0:25:02The walls are solid stone, basically,
0:25:02 > 0:25:05and that in itself causes a few more issues.
0:25:07 > 0:25:09Now back to Cumbria,
0:25:09 > 0:25:15where this three-bedroom property in Dalton-in-Furness sold for £72,000.
0:25:15 > 0:25:21The new owner, Julie, spotted the house online after it failed to sell at the auction.
0:25:21 > 0:25:24She'd been living in Australia for the past 20 years
0:25:24 > 0:25:27and has developed several properties down under.
0:25:27 > 0:25:32She was confident she had what it took to give this place the lift it needed - literally.
0:25:32 > 0:25:35Tell me what's involved in just jacking up the floors.
0:25:36 > 0:25:41Basically you have to pick them all up and then you just jack them
0:25:41 > 0:25:44so you're basically putting a wedge in.
0:25:44 > 0:25:46- Right. - And making the floors level again.
0:25:46 > 0:25:50There's no subsidence, it's just basically sagged.
0:25:50 > 0:25:54I haven't decided whether we're going to do it ourselves...
0:25:54 > 0:25:58- What do you mean do it yourselves? - Yeah, we can do it.- "We" being who?
0:25:58 > 0:26:00Myself and my family.
0:26:00 > 0:26:03Five months on and how have Julie and her family done?
0:26:05 > 0:26:10Well, I'm pleased to say it's not just the outside that's had a new paint job.
0:26:10 > 0:26:13The downstairs living space is completely transformed
0:26:13 > 0:26:17into a bright and modern living space.
0:26:17 > 0:26:20Upstairs, Julie has re-plastered, re-carpeted,
0:26:20 > 0:26:25and redecorated throughout the house, but it's not all just been cosmetic.
0:26:25 > 0:26:31The bathroom has been cleverly rejigged to accommodate a modern suite, including a brand-new shower.
0:26:32 > 0:26:36But the most dramatic change is in the kitchen.
0:26:36 > 0:26:38The kitchen and bathroom are my favourite rooms.
0:26:38 > 0:26:43They really do look modern now. They have really transformed the place.
0:26:43 > 0:26:46The bathroom, we actually took a window out of the bathroom
0:26:46 > 0:26:50to make room for a shower so we've got a nice four-piece suite in there now
0:26:50 > 0:26:53and a Velux window in the roof,
0:26:53 > 0:26:58which brings in heaps of light but it actually looks really good up there.
0:26:58 > 0:27:00And then the kitchen, I like my kitchens.
0:27:00 > 0:27:05So hopefully it'll be practical and good.
0:27:05 > 0:27:08And Julie has been busy up at the top of the house, too.
0:27:08 > 0:27:12Remember that old attic? Now it's a safer, cleaner space.
0:27:12 > 0:27:16Perfect for storage or even a little office, perhaps.
0:27:16 > 0:27:20We just had to put a banister around where the stairs are
0:27:20 > 0:27:25because that was just a hole so we've done that just to make that safe.
0:27:25 > 0:27:28We've carpeted, we've done some plastering up there,
0:27:28 > 0:27:30and central heating because it was freezing.
0:27:30 > 0:27:34Julie and her family of helpers did a lot of the renovation themselves,
0:27:34 > 0:27:38but had to get tradesmen in for the trickier plumbing and electrics.
0:27:38 > 0:27:42And it turned out she didn't want to tackle those wobbly floors either,
0:27:42 > 0:27:43leaving that for the pros.
0:27:43 > 0:27:46Phew! I bet that saved her a lot of bother.
0:27:55 > 0:28:01It was quite difficult. The walls are solid stone, basically,
0:28:01 > 0:28:03and that in itself causes a few more issues.
0:28:03 > 0:28:06It's not quite as simple as a brick structure
0:28:06 > 0:28:10so we really did need to get some professional people in to do that,
0:28:10 > 0:28:14and they did. And it caused them a few headaches, too!
0:28:14 > 0:28:18It's generally best to get professionals in when it comes to tough jobs.
0:28:18 > 0:28:22I think Julie was right not to deal with jacking up the house herself,
0:28:22 > 0:28:26but as well as the work inside she also tackled the garage outside.
0:28:26 > 0:28:29Even though it was advertised as a garage,
0:28:29 > 0:28:32you couldn't actually get a car in there
0:28:32 > 0:28:34because you couldn't get the doors open so we've raised the roof.
0:28:34 > 0:28:38We've actually put a new fibreglass roof on there
0:28:38 > 0:28:41so now you've got a really good-sized garage and good access.
0:28:41 > 0:28:43The finishing touches still need to be done,
0:28:43 > 0:28:47but, once completed, the garage should add real value.
0:28:47 > 0:28:51Off-street parking is a huge bonus for potential purchasers or tenants.
0:28:51 > 0:28:55But how has Julie's budget fared on this project?
0:28:56 > 0:29:01The original budget was 20,000, and now at about 23,000,
0:29:01 > 0:29:05maybe 23,500. I'm quite happy with that,
0:29:05 > 0:29:09basically because we didn't intend to paint the elevations
0:29:09 > 0:29:13and we didn't intend to remodel the garage, and that's where most of the money has gone
0:29:13 > 0:29:17so really it wasn't too bad an estimate.
0:29:17 > 0:29:20But has the work she's done added value to the house?
0:29:20 > 0:29:24We asked two local property experts for their thoughts.
0:29:24 > 0:29:28But, in typical British fashion, by the time they arrived just a few hours later,
0:29:28 > 0:29:30the weather had taken a turn for the worse.
0:29:41 > 0:29:45I think the buyer has made a tremendous job of it.
0:29:45 > 0:29:48It needed a full programme of modernisation.
0:29:48 > 0:29:52She's done it well and she's done the essential works very well.
0:29:52 > 0:29:55She's levelled all the floors, re-rendered the outside.
0:29:55 > 0:29:56It looks really well.
0:29:56 > 0:30:00I like the property. I think it's got nice decoration.
0:30:00 > 0:30:04I like the bathroom. I think the bathroom has been done nicely
0:30:04 > 0:30:06and made good use of the space in there as well.
0:30:06 > 0:30:10I like the way she's minimalised most of the rooms.
0:30:10 > 0:30:13Nice kitchen, nice bathroom.
0:30:13 > 0:30:16Cosmetics are really good, carpeted throughout.
0:30:16 > 0:30:18A really good job, I think.
0:30:18 > 0:30:21There's a very high demand for this type of property
0:30:21 > 0:30:24in the area at the moment for the rental and on a re-sale.
0:30:25 > 0:30:28Julie paid £72,000 for the house
0:30:28 > 0:30:31and has spent a further 23,500 on the renovation,
0:30:31 > 0:30:35making her total outlay around 95,500.
0:30:35 > 0:30:39So, what do the experts think this place would be worth if sold on?
0:30:39 > 0:30:43I think if this property was exposed to the sales market,
0:30:43 > 0:30:50it would probably achieve a figure probably between £120,000-125,000.
0:30:50 > 0:30:55The property, I would put for sale at £125,000.
0:30:55 > 0:30:58That's basically what I thought it would be, yeah,
0:30:58 > 0:31:00so I'm quite pleased with that.
0:31:00 > 0:31:03With those figures, Julie could generate a pre-tax profit
0:31:03 > 0:31:10of between £24,500 and £29,500 before the usual fees and expenses.
0:31:10 > 0:31:13What if it was rented out?
0:31:13 > 0:31:16I think if this property was exposed to the rental market,
0:31:16 > 0:31:22I think you would expect to achieve about £550 per calendar month.
0:31:22 > 0:31:27The property could achieve in the current market £550 per calendar month.
0:31:27 > 0:31:29I don't really know what the rental values are,
0:31:29 > 0:31:33but that would be fine as well if you were renting, I would imagine.
0:31:33 > 0:31:38Are those rental figures enough to convince Julie to rent the property out instead?
0:31:39 > 0:31:41I'm still going to sell the property.
0:31:41 > 0:31:45I'm going to put it on the market basically tomorrow
0:31:45 > 0:31:48and, because it's coming up to Christmas, will probably take
0:31:48 > 0:31:50a bit of time and then see what happens from there.
0:31:58 > 0:32:01What are Julie's future plans?
0:32:01 > 0:32:05I'm actually going to go back to Australia in July.
0:32:05 > 0:32:08We're going to stay out there for probably about six months
0:32:08 > 0:32:11and then we're going to come back and try and find another house.
0:32:11 > 0:32:12Have to ask the family first, though.
0:32:12 > 0:32:14I don't know if they're quite as keen.
0:32:17 > 0:32:20# I can think of nothing better
0:32:20 > 0:32:22# Than dancing on the beach
0:32:22 > 0:32:25# See a girl, you can go and get her
0:32:25 > 0:32:27# Your troubles will be out of reach
0:32:27 > 0:32:30# On the beach... #
0:32:30 > 0:32:32I'm on the north Devon coast,
0:32:32 > 0:32:34perhaps the less well-known part of the county,
0:32:34 > 0:32:37due to the popularity of the south coast.
0:32:37 > 0:32:40Barnstaple is the main town of this district,
0:32:40 > 0:32:44and claims to be the oldest borough in the United Kingdom.
0:32:44 > 0:32:46Well, most people buying a property in the southwest
0:32:46 > 0:32:49would probably like something by the beach
0:32:49 > 0:32:51or maybe overlooking the sea,
0:32:51 > 0:32:55but the price of those could be a bit of a limiting factor.
0:32:55 > 0:32:59Come inland, though, and I think you get a lot more value for your money.
0:32:59 > 0:33:00For instance, this -
0:33:00 > 0:33:04it's a three-bed mid terrace at a guide price of £95,000,
0:33:04 > 0:33:07and yet you're only 10 minutes away from some beautiful beaches.
0:33:07 > 0:33:09So, let's take a look.
0:33:11 > 0:33:13That's a pretty generous guide price
0:33:13 > 0:33:16for what is a three bedroom house in a lovely little area.
0:33:16 > 0:33:19From the outside, the property appears to be in good order.
0:33:19 > 0:33:22So, a promising start.
0:33:22 > 0:33:24Nice, bright entrance hall,
0:33:24 > 0:33:27partly due to this double glazed unit at the end here
0:33:27 > 0:33:28with the door in the middle of it.
0:33:28 > 0:33:31Lots of light coming in here, so we really like that.
0:33:31 > 0:33:34Stairs up to your bedrooms there and then through into your living room.
0:33:34 > 0:33:36Again, same thing -
0:33:36 > 0:33:41lots of light pouring in from that rather odd thing at the end there,
0:33:41 > 0:33:44like a double glazed unit which has had the bottom bit blocked off.
0:33:44 > 0:33:46Obviously at some point in the past, thought,
0:33:46 > 0:33:49somebody's knocked these two rooms into one,
0:33:49 > 0:33:52so you've got your living room there and the dining room here.
0:33:52 > 0:33:54It's not bad. I really like the open-plan feel to it,
0:33:54 > 0:33:57but it would be even better if there was a set of patio doors
0:33:57 > 0:33:59leading out there onto the garden.
0:33:59 > 0:34:02Or, another thought occurs to me -
0:34:02 > 0:34:05an old serving hatch here, therefore,
0:34:05 > 0:34:08through here, the kitchen.
0:34:09 > 0:34:14Not a bad size at all, but how about taking out this whole wall,
0:34:14 > 0:34:16maybe putting a breakfast bar area in
0:34:16 > 0:34:18to create a really nice sort of kitchen-living area,
0:34:18 > 0:34:21possibly block off that wall there.
0:34:21 > 0:34:24But internal layout, you can play with,
0:34:24 > 0:34:27and it's a nice canvas to work with.
0:34:27 > 0:34:30It does look like a blank canvas to me,
0:34:30 > 0:34:33ready to paint your own picture of how you'd like to live.
0:34:33 > 0:34:35Certainly, French doors out of the dining room
0:34:35 > 0:34:39would make the world of difference on a summer's day.
0:34:40 > 0:34:43Upstairs, the smallest bedroom probably only has room
0:34:43 > 0:34:47to squeeze in a single bed, but the other two,
0:34:47 > 0:34:50and particularly the one at the front, are good sizes.
0:34:50 > 0:34:53And the bathroom is actually in pretty good nick.
0:34:54 > 0:34:57So, there's a bit of work needed to update this house,
0:34:57 > 0:34:59but whoever does it will need to watch
0:34:59 > 0:35:02they don't spend more than the house could sell for.
0:35:02 > 0:35:06I happen to know that there's three other properties on this estate
0:35:06 > 0:35:09for sale at the moment, ranging from 140 to £152,000.
0:35:09 > 0:35:11That is what you should set your sights on
0:35:11 > 0:35:16as being the value of this property. Any buyer - bear that in mind.
0:35:16 > 0:35:21Even if super-duper and snazzy, with gold taps and bespoke fittings,
0:35:21 > 0:35:26you're unlikely to get more than £152,000 for this place.
0:35:26 > 0:35:28The sky's definitely not the limit,
0:35:28 > 0:35:32and you are somewhat constrained by the neighbouring properties.
0:35:32 > 0:35:35Still, I think there is money to be made here,
0:35:35 > 0:35:37if you don't get carried away.
0:35:37 > 0:35:40We asked along a local property expert to hear his opinion
0:35:40 > 0:35:45on this North Devon terrace, which had a guide price of £95,000.
0:35:46 > 0:35:48First impressions are, it's not too bad.
0:35:48 > 0:35:51It's a light refreshment project, I would say.
0:35:51 > 0:35:53You're going to consider putting a new bathroom, new kitchen,
0:35:53 > 0:35:55and just general decoration.
0:35:55 > 0:35:58Personally, I think you're going to spend approximately £10,000,
0:35:58 > 0:36:02cos the property has the main mod cons inserted,
0:36:02 > 0:36:05which is obviously double glazing and gas central heating.
0:36:05 > 0:36:07How much could the property be worth?
0:36:07 > 0:36:10I think as we see it today, the property could be worth
0:36:10 > 0:36:13somewhere in the region of £100-110,000.
0:36:13 > 0:36:17Once refurbished, that could push that figure up closer to £140,000.
0:36:19 > 0:36:21How much could it rent out for?
0:36:22 > 0:36:25These sort of three bedroom properties in the area rent extremely well,
0:36:25 > 0:36:29and somewhere in the region of £650 per calendar month
0:36:29 > 0:36:30wouldn't be unreasonable.
0:36:30 > 0:36:34Well, this really isn't a property for a developer
0:36:34 > 0:36:37looking to throw caution to the wind and take a real chance.
0:36:37 > 0:36:41This is more for somebody looking for a bit more of a safe bet
0:36:41 > 0:36:45and happy to accept decent rather than rich returns.
0:36:45 > 0:36:48Let's find out who that was when it went under the hammer.
0:36:48 > 0:36:50Good renter, good first home.
0:36:50 > 0:36:53Who's going to say 100 to us? Nice and simple.
0:36:53 > 0:36:55100. 100 we've got.
0:36:55 > 0:36:58At 100. 101. 101.
0:36:58 > 0:37:00This was a well-attended auction,
0:37:00 > 0:37:02with a lot of interest in this property.
0:37:02 > 0:37:06We rejoin the bidding as it reaches £125,000 -
0:37:06 > 0:37:09£30,000 over the guide price.
0:37:11 > 0:37:12125. Good pitch.
0:37:12 > 0:37:15125. Half, he says. 125 and a half.
0:37:15 > 0:37:18126. 126.
0:37:18 > 0:37:21126 and a half. 126 and a half.
0:37:21 > 0:37:24126 and a half. 127.
0:37:24 > 0:37:25127.
0:37:25 > 0:37:26At 1...yeah.
0:37:26 > 0:37:29127 and a half. 127 and a half.
0:37:29 > 0:37:32128. 128. Tape goes around.
0:37:32 > 0:37:34128 and a half. 128 and a half.
0:37:34 > 0:37:36At 128...9.
0:37:36 > 0:37:39At 129. Once is sat.
0:37:39 > 0:37:43Twice is sat. At 129, last chance for a half.
0:37:43 > 0:37:46Here we go. At 129, and out.
0:37:46 > 0:37:47Sir, yours.
0:37:47 > 0:37:49Congratulations, well done. 129.
0:37:49 > 0:37:52And your buyer's number, sir, is, please?
0:37:52 > 0:37:55With that successful bid of £129,000,
0:37:55 > 0:37:58£34,000 over the guide price, was Ken.
0:37:58 > 0:38:01He's a retired painter and decorator
0:38:01 > 0:38:05who's also been developing property in the area for almost 30 years.
0:38:05 > 0:38:08I met up with him back at the house.
0:38:08 > 0:38:11- Ken, great to meet you. Congratulations.- Thank you very much.
0:38:11 > 0:38:13Tell me why you wanted to buy this place.
0:38:13 > 0:38:19Well, really, because it is a good letting area
0:38:19 > 0:38:22and that is what we do. We do let properties,
0:38:22 > 0:38:26and having known the area for some time
0:38:26 > 0:38:29because the first property we bought was just up the road,
0:38:29 > 0:38:31so it's worked out quite well,
0:38:31 > 0:38:34and if you know a lot more than other people,
0:38:34 > 0:38:38- then it comes in handy sometimes, doesn't it?- Right.
0:38:38 > 0:38:41So when did you start with your first property?
0:38:41 > 0:38:43- 1983.- Wow!
0:38:43 > 0:38:45- Yeah.- Gosh.
0:38:45 > 0:38:471983, so, many years ago.
0:38:47 > 0:38:50- Getting on for 30 years, almost. - Yeah, nearly 30 years.
0:38:50 > 0:38:52Continuous letting, that is, as well.
0:39:00 > 0:39:03With all that experience behind him, is there anything we can learn
0:39:03 > 0:39:06about property developing? Maybe Ken can tell us.
0:39:07 > 0:39:09Well, you've got to be very careful,
0:39:09 > 0:39:11for a start, especially with property,
0:39:11 > 0:39:13because you're not talking about
0:39:13 > 0:39:15a few hundred pounds these days, are you?
0:39:15 > 0:39:19So, do your homework, as we did with this one
0:39:19 > 0:39:20and every property we look at,
0:39:20 > 0:39:24and if you know the area, great advantage.
0:39:24 > 0:39:26But, like I say, there is pitfalls,
0:39:26 > 0:39:30and you've got to look out for all the things behind
0:39:30 > 0:39:34that is not displayed to you. That is the big secret.
0:39:42 > 0:39:44Ken should smile about this property,
0:39:44 > 0:39:48as there don't seem to be any secrets lurking here.
0:39:48 > 0:39:52It's a simple job for a man who's been doing this for nearly 30 years.
0:39:52 > 0:39:55So what's he planning for this place?
0:39:55 > 0:40:02Right. What we're going to do is total redec and refit.
0:40:02 > 0:40:06Looks like the kitchen and the bathroom, carpets...
0:40:06 > 0:40:10total, really. Well, I say, it has got central heating,
0:40:10 > 0:40:12gas central heating,
0:40:12 > 0:40:15and PVC windows, so that's a bonus.
0:40:15 > 0:40:18Which...but as you can...
0:40:18 > 0:40:21when you look around the detail, you can see the coving
0:40:21 > 0:40:23and the skirting aren't quite up to scratch,
0:40:23 > 0:40:26not for what we would like.
0:40:26 > 0:40:28So what's the budget for the work?
0:40:28 > 0:40:32I reckon between two and three thousand.
0:40:32 > 0:40:33- Two and three?- Mmm.
0:40:33 > 0:40:37- You're doing the kitchen and the bathroom as well?- Yeah.
0:40:37 > 0:40:39How are you going to do that for two to three thousand?
0:40:39 > 0:40:42- I'll let you know later. - What do you mean, later?
0:40:42 > 0:40:45No, you can do it.
0:40:45 > 0:40:49It's not a problem. I've done kitchens and bathrooms before,
0:40:49 > 0:40:51refitted them. Not a problem.
0:40:51 > 0:40:53So the whole redecoration and the kitchen
0:40:53 > 0:40:56and the bathroom and new carpets...
0:40:56 > 0:40:58- Yeah.- ..for two to three thousand?
0:40:58 > 0:41:02- Yeah.- I want to know your secrets, mate!- Well, like I say...
0:41:02 > 0:41:05I mean, the thing is, it's all experience, isn't it?
0:41:05 > 0:41:06If you've done it a number of times,
0:41:06 > 0:41:11you know what to get and where to get and what to pay.
0:41:11 > 0:41:14And what about...have you got your own team of people?
0:41:14 > 0:41:17- So you're not paying the bills? - No, I do it...most of it myself.
0:41:17 > 0:41:20My wife has input as well, as they do,
0:41:20 > 0:41:22so it all adds to...
0:41:22 > 0:41:26at the end of the day, it all adds to a nice job done.
0:41:26 > 0:41:28Job done indeed.
0:41:28 > 0:41:31Ken hasn't lost any of his enthusiasm,
0:41:31 > 0:41:33and is majorly involved in all parts of the work.
0:41:33 > 0:41:38That may be the reason he can keep his budgets so low.
0:41:38 > 0:41:40But 30 years on, some people may have thought, you know,
0:41:40 > 0:41:43"Let's take a bit more of a back seat.
0:41:43 > 0:41:46"Let's just be the landlord, let's do that stuff,"
0:41:46 > 0:41:49not actually getting your hands dirty out there.
0:41:49 > 0:41:51Well, yeah, you're right. People do say that,
0:41:51 > 0:41:54but that's the people who doesn't like so much what they're doing.
0:41:54 > 0:41:58I love what I'm doing, so it's not as much a job to me,
0:41:58 > 0:42:02because I do it all the time because I like it.
0:42:02 > 0:42:04So what's the problem?
0:42:04 > 0:42:06You keep doing what you like, don't you, these days?
0:42:06 > 0:42:09Well, listen, congratulations. Good luck with it.
0:42:09 > 0:42:11- Thank you very much.- We look forward to seeing how you get on.
0:42:11 > 0:42:12Yeah, will do. Thank you.
0:42:12 > 0:42:14Hmmm.
0:42:14 > 0:42:17Well, stick to what you know and what you like.
0:42:17 > 0:42:20There's certainly a lot of sense in that.
0:42:20 > 0:42:22And this is a really solid little property
0:42:22 > 0:42:24for Ken to add to his portfolio.
0:42:24 > 0:42:28But two to three thousand quid to do the bathroom,
0:42:28 > 0:42:31the kitchen and a full decoration and carpets?
0:42:31 > 0:42:34Phew! I can't wait to see if he manages that.
0:42:34 > 0:42:36You can find out later in the show.
0:42:39 > 0:42:42Well, if you want to profit from property, timing is crucial,
0:42:42 > 0:42:45but you have to be flexible with your plans.
0:42:45 > 0:42:47That's right. Don't let time pass you by.
0:42:47 > 0:42:50Let's see how today's buyers got on.
0:42:50 > 0:42:54Now we're back in Cardiff, with this second floor,
0:42:54 > 0:42:57two bedroom flat which sold at auction for 61,000.
0:42:57 > 0:42:58I met up with Darren, who,
0:42:58 > 0:43:01along with his business partner and their wives,
0:43:01 > 0:43:02has built up a rental portfolio,
0:43:02 > 0:43:06including seven other properties, over the last few years.
0:43:08 > 0:43:10So you must be pretty busy.
0:43:10 > 0:43:12The phone must ring on the occasional time,
0:43:12 > 0:43:15the washing machine's broken, there's a leak?
0:43:15 > 0:43:17Well, we only started buying just under two years ago,
0:43:17 > 0:43:20so most things are pretty new, anyway.
0:43:21 > 0:43:23Very little issues, I have to say.
0:43:23 > 0:43:26We've been fortunate, because we when we do them,
0:43:26 > 0:43:29we do them up quite well.
0:43:29 > 0:43:32So, did they manage to get this flat up to standard?
0:43:32 > 0:43:35We're back six weeks later to see the result.
0:43:41 > 0:43:43Darren's done a great job here.
0:43:43 > 0:43:45He has part-furnished the flat,
0:43:45 > 0:43:47with the tenant opting to bring their own single beds,
0:43:47 > 0:43:50which leaves a bit more space in the rooms.
0:44:05 > 0:44:08In this room, we took out the existing kitchen,
0:44:08 > 0:44:10replaced it with this new one.
0:44:10 > 0:44:12We reconfigured it slightly.
0:44:12 > 0:44:16We've obviously painted it up, new tiles on the wall,
0:44:16 > 0:44:18also took up the existing vinyl floor
0:44:18 > 0:44:20and put new tiles down there.
0:44:20 > 0:44:22We were fortunate with regards the tiles.
0:44:22 > 0:44:24They'd been in my garage for a couple of years
0:44:24 > 0:44:27from a job we did some time ago,
0:44:27 > 0:44:30so if we can find stuff to help us out
0:44:30 > 0:44:33to save on costs, that's what we do.
0:44:33 > 0:44:36Obviously, it's brightened it up and I'm pleased with it.
0:44:36 > 0:44:40Throughout, the property has been completely modernised,
0:44:40 > 0:44:42with upgraded electrics,
0:44:42 > 0:44:45new flooring and a neutral colour scheme.
0:44:45 > 0:44:47All that clutter is long gone,
0:44:47 > 0:44:51and now it's a comfortable and fresh living space.
0:44:51 > 0:44:54Well, in this room, the only problem we had was damp
0:44:54 > 0:44:56that was coming through this corner here.
0:44:56 > 0:44:58We found out that it was historical,
0:44:58 > 0:45:01and all we had to really do was to seal it up,
0:45:01 > 0:45:03retape it and paint it.
0:45:03 > 0:45:06The rest of the room, obviously, is painted throughout
0:45:06 > 0:45:08in this neutral colour.
0:45:08 > 0:45:12New carpets put down, new curtains, and the tenant's moved in
0:45:12 > 0:45:15and he's happy and we're happy.
0:45:15 > 0:45:18Well, that is great - a tenant already found.
0:45:18 > 0:45:22But has it been as simple a renovation as Darren hoped?
0:45:25 > 0:45:27Pretty much straightforward.
0:45:27 > 0:45:31You know, in lots of places we've had to do full refurbs.
0:45:31 > 0:45:34This one, really, to all intents and purposes, was a bit of a clean up,
0:45:34 > 0:45:37you know, with the exception of the kitchen and bathroom.
0:45:37 > 0:45:41I suppose if every one was like this it would be an easy job.
0:45:41 > 0:45:43But I suppose everyone would be doing it then!
0:45:43 > 0:45:46Too true. They're certainly not all as plain sailing
0:45:46 > 0:45:49as this one seems to have been.
0:45:49 > 0:45:51However, there is one issue
0:45:51 > 0:45:54that Darren seems to have been unable to remedy -
0:45:54 > 0:45:58that's the exterior and communal parts of the building,
0:45:58 > 0:46:00which are a bit tired and shabby. When we were last here,
0:46:00 > 0:46:04Darren was trying to track down the freeholder to sort out the service charge
0:46:04 > 0:46:09in order to give these areas some much-needed TLC.
0:46:09 > 0:46:12So, is that in the pipeline any time soon?
0:46:14 > 0:46:17We received a letter from the freeholder, eventually.
0:46:17 > 0:46:20So things will start moving from there on in.
0:46:20 > 0:46:24I've spoken to a number of people in this block
0:46:24 > 0:46:29who are very keen to get the place updated and looking at its best.
0:46:29 > 0:46:32So there's light at the end of the tunnel with regards that one
0:46:32 > 0:46:36cos we've finally got hold of the freeholder. Hopefully we'll get things moving.
0:46:36 > 0:46:38Fingers crossed that that gets sorted soon
0:46:38 > 0:46:42because it certainly doesn't seem to be in Darren's nature to dilly-dally.
0:46:44 > 0:46:48He managed to renovate the property within his two to four week estimate.
0:46:49 > 0:46:52But how did he do on his budget?
0:46:52 > 0:46:56Darren had set aside £3,000-£4,000 and not a penny more,
0:46:56 > 0:46:58so did he stick to his guns?
0:47:00 > 0:47:04I worked it all out the other day. It was £47 above the 3,000 mark,
0:47:04 > 0:47:06so at the bottom end.
0:47:06 > 0:47:10That certainly seems like a job well done.
0:47:10 > 0:47:13Darren and his partner spent 61,000 on this property at auction,
0:47:13 > 0:47:16a further £1,000 on fees,
0:47:16 > 0:47:21and an additional £3,047 on the refurbishment,
0:47:21 > 0:47:24making a grand total of just over £65,000.
0:47:24 > 0:47:26So, was this money well spent?
0:47:26 > 0:47:31We asked two local property experts for their opinions.
0:47:33 > 0:47:37What I particularly like about the apartment is the lightness.
0:47:37 > 0:47:40We're on the second floor, which technically is the penthouse,
0:47:40 > 0:47:43so in real terms, we've got a lot of light coming through.
0:47:43 > 0:47:47The colours schemes used are all magnolias, light colours, pastels,
0:47:47 > 0:47:50coupled with the contemporary kitchen and bathroom fitments which have been put in,
0:47:50 > 0:47:54so it's very stylish and it's going to appeal to the young element.
0:47:54 > 0:47:57Really nice, yeah. It's very well-presented, neutrally-decorated.
0:47:57 > 0:48:02A lovely kitchen, a really nice bathroom, so a very nice property.
0:48:02 > 0:48:05So, it all sounds very positive.
0:48:05 > 0:48:09How much could it fetch on the rental market?
0:48:09 > 0:48:12In my opinion, the rental figure that could be achieved
0:48:12 > 0:48:15is £475 per calendar month.
0:48:15 > 0:48:17I would put the property on the market
0:48:17 > 0:48:21for around £450 per calendar month.
0:48:21 > 0:48:25We have got more than that with the tenant we have in.
0:48:25 > 0:48:29We're actually getting 500 a month, which I think it's worth.
0:48:29 > 0:48:33500 a month will mean a healthy yield
0:48:33 > 0:48:38of just over 9%. But if Darren and his partners choose to sell on,
0:48:38 > 0:48:41even with its relatively short lease, how much could they achieve?
0:48:41 > 0:48:44Remember, they spent just over 65,000 here.
0:48:44 > 0:48:47If this property was for sale,
0:48:47 > 0:48:50we would value it between £85,000-£95,000.
0:48:50 > 0:48:54The value of this apartment in its present condition in today's market
0:48:54 > 0:48:58is between £85,000-£95,000.
0:48:58 > 0:49:00No major surprises there,
0:49:00 > 0:49:05but I'm basically in this just to rent out,
0:49:05 > 0:49:09for at least five years, and see how things go when the house market recovers.
0:49:09 > 0:49:12With this project going so smoothly,
0:49:12 > 0:49:17does he have any advice for would-be property developers?
0:49:17 > 0:49:21Well, if I'm doing it, I don't think it's that difficult.
0:49:21 > 0:49:24I think it's a little bit of knowledge,
0:49:24 > 0:49:26knowing the right people.
0:49:26 > 0:49:29Hopefully you're prepared to get your hands dirty a bit yourself
0:49:29 > 0:49:31to keep down on costs.
0:49:31 > 0:49:36So, I would encourage anyone who feels like it's something for them
0:49:36 > 0:49:39to give it a try. If you don't try things, you never know.
0:49:41 > 0:49:43Time to go back to Devon,
0:49:43 > 0:49:47where this three-bedroom house in Barnstaple
0:49:47 > 0:49:51sold at auction for £129,000.
0:49:51 > 0:49:53Ken was the buyer. He's retired now,
0:49:53 > 0:49:57but manages a substantial portfolio of properties.
0:49:57 > 0:50:00His experience as a landlord gave him confidence
0:50:00 > 0:50:03when it came to his budget for the renovation.
0:50:05 > 0:50:08I reckon between 2,000-3,000.
0:50:08 > 0:50:09- Two and three?- Mm.
0:50:09 > 0:50:13- Are you doing the kitchen and the bathroom as well?- Yeah.
0:50:13 > 0:50:15How are you going to do that for £2,000-£3,000?!
0:50:15 > 0:50:18- I'll let you know later. - What do you mean "later"?!
0:50:18 > 0:50:22Five months later, to be precise,
0:50:22 > 0:50:26we caught up with Ken to see how much bang he got for his buck.
0:50:32 > 0:50:35And he's done a great job.
0:50:35 > 0:50:37It's modern, simple and effective.
0:50:42 > 0:50:46As you can see, we've got a new hob, a new cooker...
0:50:46 > 0:50:49Really, everything in this kitchen has been renewed.
0:50:49 > 0:50:51So, really, this kitchen is accessible,
0:50:51 > 0:50:56through all areas, for whatever you want within the kitchen.
0:50:56 > 0:51:01So everything seems to be up and hopefully working fine!
0:51:01 > 0:51:04It has been tested, so everything's fine.
0:51:09 > 0:51:13Throughout the house, everything has been freshened up, repainted,
0:51:13 > 0:51:15re-floored, and made to look spic and span.
0:51:21 > 0:51:24The bathroom has been modernised as well.
0:51:28 > 0:51:32He's done a really neat renovation here, but as I suspected,
0:51:32 > 0:51:37he hasn't been able to stick to that ambitiously low budget of 2,000-3,000.
0:51:37 > 0:51:40I think we've gone to about 4,500 now.
0:51:40 > 0:51:44It was only finished a few days ago,
0:51:44 > 0:51:47so there are a few more invoices to come in.
0:51:47 > 0:51:50But I mean, with that money spent on this property,
0:51:50 > 0:51:54for what it was bought for, I think it's quite a good deal, yeah.
0:51:54 > 0:51:57So, with the last few things to pay for,
0:51:57 > 0:52:01that's going to be almost twice the estimated budget of 2,000-3,000.
0:52:10 > 0:52:12But in the grand scheme of things, it's not a huge amount
0:52:12 > 0:52:15for a total renovation of a property.
0:52:15 > 0:52:17However, it hasn't all been plain sailing.
0:52:19 > 0:52:21The walls took most of the time
0:52:21 > 0:52:25to do on this property because they were in such a state, you know.
0:52:25 > 0:52:28As soon as you put a coat of paint on the walls
0:52:28 > 0:52:31you could see the condition of the walls,
0:52:31 > 0:52:34so we had to keep skimming it up and recoating the walls.
0:52:34 > 0:52:37I say "we", I mean "me"!
0:52:43 > 0:52:47It wasn't only the walls that were in poor condition.
0:52:47 > 0:52:51Remember that garden? Well, now Ken's cleaned that up nicely, too.
0:52:51 > 0:52:55And on top of all this work, some of the extra money
0:52:55 > 0:52:58he had to spend went on fully rewiring the house.
0:53:04 > 0:53:10We did have to upgrade the electrics to today's standards,
0:53:10 > 0:53:13which, where I'm standing now,
0:53:13 > 0:53:17the floors had to be dug up to lay larger earth cables.
0:53:17 > 0:53:21So it's up to today's standards and certificated.
0:53:21 > 0:53:24He originally planned to do the work in six to eight weeks,
0:53:24 > 0:53:27but it's taken nearer five months
0:53:27 > 0:53:29because of all that extra work he's done,
0:53:29 > 0:53:32and he did most of that himself.
0:53:32 > 0:53:35So, what are his plans for the property now?
0:53:36 > 0:53:41Originally, we were going to let the property,
0:53:41 > 0:53:46but now, it's come up so well
0:53:46 > 0:53:49that I think, possibly, maybe a resale,
0:53:49 > 0:53:53but we've not 100% made a decision yet,
0:53:53 > 0:53:57so we will be thinking about that within the next week or two,
0:53:57 > 0:54:01making a decision whether it's going to be rental or for sale.
0:54:03 > 0:54:05Ken's already had his own valuation done,
0:54:05 > 0:54:07but will two other local experts
0:54:07 > 0:54:12be able to give him an idea of the house's current market value?
0:54:12 > 0:54:16First of all, let's hear their thoughts on the work.
0:54:16 > 0:54:20First impressions? I have to say that the gentleman
0:54:20 > 0:54:24has done an excellent job. The finish is to a very good standard.
0:54:24 > 0:54:26It looks really well-presented.
0:54:26 > 0:54:29He's obviously done quite a lot of work throughout
0:54:29 > 0:54:31and it looks like he's done a really good job.
0:54:31 > 0:54:34The bathroom has been finished to an excellent standard -
0:54:34 > 0:54:36it's what people are looking for -
0:54:36 > 0:54:40a standard three-piece white suite, a shower over the bath,
0:54:40 > 0:54:42tiling... An excellent standard.
0:54:42 > 0:54:44The kitchen's been done really well.
0:54:44 > 0:54:47It's clean and tidy, nice and modern.
0:54:47 > 0:54:50Appliances are in there, which is always a bonus.
0:54:50 > 0:54:53What about those valuations, then?
0:54:53 > 0:54:55Firstly, the rental figures.
0:54:55 > 0:54:59For rental, the market is very strong at the moment,
0:54:59 > 0:55:04so for a house like this, we'd probably be looking to get around £600 per calendar month.
0:55:04 > 0:55:07If we were going to place the property on the market for rental,
0:55:07 > 0:55:11I would suggest a figure of 595 per calendar month.
0:55:11 > 0:55:14Too low.
0:55:14 > 0:55:17Yeah. I've already had rental values above that,
0:55:17 > 0:55:21before I even bought the property, so I think they're a bit low.
0:55:21 > 0:55:26Maybe the resale valuations will be more in line with what he had in mind.
0:55:26 > 0:55:30Remember, Ken bought the property for 129,000
0:55:30 > 0:55:34and has done around £4,500 worth of work.
0:55:34 > 0:55:37So to make a profit, these valuations need to be more
0:55:37 > 0:55:42than his total spend of £133,500.
0:55:42 > 0:55:44If we were going to place the property on the market for sale,
0:55:44 > 0:55:47I would do so at a figure of £150,000.
0:55:47 > 0:55:50If the house went up for sale at the moment,
0:55:50 > 0:55:54I would think it would probably be in the region of 150,000,
0:55:54 > 0:55:58possibly looking to come down slightly on that.
0:55:58 > 0:56:02Both the values that you've just spoken about
0:56:02 > 0:56:06are below the valuations that we've previously had.
0:56:06 > 0:56:10So I wouldn't be happy with those valuations, no.
0:56:10 > 0:56:13In fact, Ken has since put the house on the market
0:56:13 > 0:56:18and very quickly received an offer of £162,500.
0:56:18 > 0:56:22But he decided not to accept that as he thinks he can achieve more
0:56:22 > 0:56:24if he holds out a bit longer.
0:56:24 > 0:56:29So he could be looking at a pre-tax profit of over £30,000,
0:56:29 > 0:56:31which is a very healthy return.
0:56:31 > 0:56:34Meanwhile, it sounds like he's having too much fun
0:56:34 > 0:56:37to put his feet up and enjoy his retirement.
0:56:42 > 0:56:44Never. I wouldn't do it if I didn't love it.
0:56:44 > 0:56:48A lot of people do jobs that they don't like, but that's not me.
0:56:48 > 0:56:51I always do, you know...
0:56:51 > 0:56:53If I didn't like it, I wouldn't be here doing what I've done.
0:56:56 > 0:56:59There'll be more compelling stories for you next time.
0:56:59 > 0:57:02- So make sure you join us then for more Homes Under The Hammer.- Goodbye. - Goodbye.
0:57:23 > 0:57:26Subtitles by Red Bee Media Ltd