0:00:02 > 0:00:04Hello. Whether you're a seasoned developer or first-time buyer,
0:00:04 > 0:00:06you definitely want value for money.
0:00:06 > 0:00:09Which can be tricky in a fluctuating market,
0:00:09 > 0:00:11which is why more and more people
0:00:11 > 0:00:14are having a go at buying their homes under the hammer.
0:00:40 > 0:00:43Now, Martin, sometimes you know you've got yourself a bargain
0:00:43 > 0:00:45and other times, well, you're not quite sure.
0:00:45 > 0:00:48The only way to really know is to test the market.
0:00:48 > 0:00:52So, did the buyers on today's show get themselves a bargain?
0:00:52 > 0:00:54Here's what they bought.
0:00:55 > 0:00:59In Hammersmith, I get a reality check on the capital's property prices.
0:00:59 > 0:01:03In certain parts of London, this is what you get for nearly a quarter of a million quid.
0:01:05 > 0:01:08This mid-terrace in Gillingham, Kent, is so near the station
0:01:08 > 0:01:10you don't need a minute to win it.
0:01:10 > 0:01:1456 seconds - get a load of that!
0:01:16 > 0:01:20And in Derbyshire, it's not the price that's a barrier to buying this house.
0:01:20 > 0:01:22I'd love to look inside.
0:01:22 > 0:01:24Got a slight issue.
0:01:24 > 0:01:25Can't get in.
0:01:26 > 0:01:28All these properties were sold at auction.
0:01:28 > 0:01:30We'll find out who bought them
0:01:30 > 0:01:33and what they paid for them when they went under the hammer.
0:01:38 > 0:01:40I'm in West London today,
0:01:40 > 0:01:43an area which seems to be not only blooming
0:01:43 > 0:01:45but has a lot going for it too.
0:01:45 > 0:01:48# I'm gonna get myself I'm gonna get myself
0:01:48 > 0:01:50# I'm gonna get myself Connected... #
0:01:50 > 0:01:52Well, if you're looking for good connections,
0:01:52 > 0:01:54it doesn't get much better than Hammersmith.
0:01:54 > 0:01:56More Tube lines than you can shake a stick at,
0:01:56 > 0:01:59the M4... You've got the Thames, if you want it.
0:01:59 > 0:02:02So, a very popular place to be.
0:02:02 > 0:02:05Even in these tough times, property prices around here
0:02:05 > 0:02:08went up by over 5% last year, in 2012.
0:02:08 > 0:02:11So, a nice leafy street,
0:02:11 > 0:02:14close to the centre with all its good things going on.
0:02:14 > 0:02:18And I'm here to see a one-bedroom flat on the first floor,
0:02:18 > 0:02:20with a guide price of £225,000.
0:02:20 > 0:02:22Let's take a look.
0:02:22 > 0:02:27The flat is leasehold and comes with a 125-year lease.
0:02:27 > 0:02:31It's one of three flats in this rather elegantly fronted building.
0:02:31 > 0:02:34Let's hope the interior lives up to the exterior.
0:02:36 > 0:02:38So, what have we got?
0:02:38 > 0:02:40Well, not too many surprises in store, I guess,
0:02:40 > 0:02:43if you're looking at a one-bedroom flat, but you never know.
0:02:43 > 0:02:47Through the front door, facing you, the bathroom and loo.
0:02:47 > 0:02:49Bedroom over there - we'll come to that in a minute.
0:02:49 > 0:02:52Then through into the only other room in the property,
0:02:52 > 0:02:54which is this. So this is your kitchen
0:02:54 > 0:02:57and your living area.
0:02:57 > 0:03:00Um...now, the kitchen - pretty serviceable.
0:03:00 > 0:03:02The flat itself, not in bad condition.
0:03:02 > 0:03:06You could, theoretically, just use it pretty much as it is.
0:03:06 > 0:03:10But to my mind, it's had a bit of the character taken out of it,
0:03:10 > 0:03:14and renovated not particularly excitingly.
0:03:14 > 0:03:18Nice to have the sash windows both at the front and the rear of the property,
0:03:18 > 0:03:21but here in the bedroom, again, not a massive amount of space.
0:03:21 > 0:03:24I think this flat really needs a sensitive touch.
0:03:24 > 0:03:26It needs a bit of character put back in it.
0:03:26 > 0:03:29And then you'd have a half-decent flat.
0:03:29 > 0:03:32But at the end of it all,
0:03:32 > 0:03:33in certain parts of London,
0:03:33 > 0:03:37this is what you get for nearly a quarter of a million quid.
0:03:37 > 0:03:40Well, it seems crazy that such a relatively small flat
0:03:40 > 0:03:42could command such a high value.
0:03:42 > 0:03:46For that price, you might expect chandeliers on the ceiling
0:03:46 > 0:03:48and top-notch fixtures and fittings.
0:03:48 > 0:03:52However, one room does have a delusion of grandeur.
0:03:54 > 0:03:56Don't you just love this light pull in the bathroom?
0:03:56 > 0:03:59Well, I suppose they do call it the throne room.
0:03:59 > 0:04:01There's another key thing about this flat
0:04:01 > 0:04:04that any potential purchaser shouldn't be left in the dark about.
0:04:04 > 0:04:09Two really important things you need to consider when you're buying a flat
0:04:09 > 0:04:12are number one - the lease, how long is it,
0:04:12 > 0:04:14and number two - the communal areas
0:04:14 > 0:04:18and your proportion of any bills that might be incurred
0:04:18 > 0:04:20keeping those up to scratch.
0:04:20 > 0:04:22Well, as you can see, one of the things which does slightly
0:04:22 > 0:04:25let this flat down is this communal stairway.
0:04:25 > 0:04:29The good news is that there are plans in place
0:04:29 > 0:04:33to actually do up the communal areas - front door, this area here,
0:04:33 > 0:04:34possibly the roof.
0:04:34 > 0:04:37The bad news is that you, as the new owner of this place,
0:04:37 > 0:04:40will be partly responsible for the cost of those repairs,
0:04:40 > 0:04:42and if you're not sure what they're going to be,
0:04:42 > 0:04:46you could be letting yourself in for all sorts of unknown amounts of money.
0:04:46 > 0:04:49So definitely, that's something that needs to be checked out before you buy.
0:04:49 > 0:04:54So, potentially some extra costs on top of the £225,000 guide price.
0:04:54 > 0:04:57Can you really add value to this flat
0:04:57 > 0:04:59and make it a good investment?
0:05:01 > 0:05:03What can a local estate agent tell us?
0:05:05 > 0:05:08I personally would put in a high-spec kitchen in here.
0:05:08 > 0:05:11If you've got an open-plan kitchen/reception room,
0:05:11 > 0:05:13it's worth spending the extra money.
0:05:13 > 0:05:14Put high-quality units in,
0:05:14 > 0:05:16high-quality appliances
0:05:16 > 0:05:18and nice granite work surfaces -
0:05:18 > 0:05:20something to give it the wow factor,
0:05:20 > 0:05:22which is what everybody wants.
0:05:22 > 0:05:24Indeed. We all want wow.
0:05:24 > 0:05:27But with that £225,000 guide price,
0:05:27 > 0:05:29plus the cost of giving it wow status,
0:05:29 > 0:05:32can it really be a worthwhile investment?
0:05:34 > 0:05:37Once the property has been refurbished to a high standard,
0:05:37 > 0:05:39I would expect to market this property
0:05:39 > 0:05:42anything in the region from sort of £295,000
0:05:42 > 0:05:44to £315,000.
0:05:44 > 0:05:47What about its rental potential?
0:05:48 > 0:05:52I would expect to obtain a rent of round about £1,300 per calendar month.
0:05:58 > 0:05:59Well, when it comes down to it,
0:05:59 > 0:06:01not a lot of property for your pennies,
0:06:01 > 0:06:04but that's what you have to pay for this kind of place
0:06:04 > 0:06:06around these parts.
0:06:06 > 0:06:08Let's see who fancied it when it went to auction.
0:06:11 > 0:06:1335 is a one-bed self-contained flat.
0:06:13 > 0:06:15Start at 200, go up.
0:06:15 > 0:06:16200.
0:06:16 > 0:06:18200, sitting down.
0:06:18 > 0:06:19205.
0:06:19 > 0:06:21205, yes?
0:06:21 > 0:06:22210.
0:06:22 > 0:06:24215.
0:06:24 > 0:06:25220.
0:06:25 > 0:06:27225.
0:06:27 > 0:06:28225.
0:06:28 > 0:06:30230.
0:06:30 > 0:06:32230.
0:06:32 > 0:06:33235.
0:06:33 > 0:06:35236, yeah?
0:06:35 > 0:06:37236. 237.
0:06:37 > 0:06:39238.
0:06:39 > 0:06:40240.
0:06:40 > 0:06:42241.
0:06:42 > 0:06:4524...2?
0:06:45 > 0:06:46243.
0:06:46 > 0:06:48244.
0:06:48 > 0:06:50245.
0:06:50 > 0:06:52246.
0:06:53 > 0:06:55247.
0:06:55 > 0:06:56248.
0:06:56 > 0:06:58249.
0:06:59 > 0:07:01250. 251, back in.
0:07:01 > 0:07:03Lady, 252.
0:07:03 > 0:07:04253.
0:07:04 > 0:07:06Yeah?
0:07:06 > 0:07:07254.
0:07:07 > 0:07:08255.
0:07:09 > 0:07:10255?
0:07:10 > 0:07:12254, first time.
0:07:12 > 0:07:14Second time.
0:07:14 > 0:07:16Third and last time, if you're all done.
0:07:16 > 0:07:18Sold, 254.
0:07:19 > 0:07:21So, for £254,000,
0:07:21 > 0:07:26the new owner of the first-floor one-bedroom flat in Hammersmith is Charles.
0:07:26 > 0:07:28Charles is a banker by profession,
0:07:28 > 0:07:31and I met him at the flat to find out more.
0:07:31 > 0:07:35- Charles, great to meet you.- Very good to meet you too.
0:07:35 > 0:07:36- Congratulations.- Thank you.
0:07:36 > 0:07:38Tell me why you wanted to buy this flat.
0:07:38 > 0:07:41I wanted to buy a flat in this area of London,
0:07:41 > 0:07:43ideally for rental purposes,
0:07:43 > 0:07:45but I had barely seen it.
0:07:45 > 0:07:50I came in just as they were closing the door, so really it was a 30-second round.
0:07:50 > 0:07:52And just make sure that the ceilings weren't coming down
0:07:52 > 0:07:54and the building wasn't falling down.
0:07:54 > 0:07:58- So you spent over a quarter of a million pounds on 30 seconds' glance?- Yes.
0:07:58 > 0:08:00How do you feel about that now?
0:08:00 > 0:08:03As soon as you walk in, it's a very light flat, nice low windows.
0:08:03 > 0:08:05Um...no, I'm very, very pleased with it.
0:08:05 > 0:08:08I do have one rule, and that would apply to this one too,
0:08:08 > 0:08:11- that any property I buy I'd be prepared to live in myself.- Right.
0:08:11 > 0:08:15In case you need to. Quite a few flats being sold off at the moment
0:08:15 > 0:08:19do have a covenant that you cannot live in them as your prime residence.
0:08:19 > 0:08:23- Right.- So I was very careful when I bought this one that that was not the case.
0:08:23 > 0:08:26And what about you - is this something you've done before?
0:08:26 > 0:08:29Well, I was a banker for over 25 years,
0:08:29 > 0:08:32and I left the bank industry on a full-time basis
0:08:32 > 0:08:33three years ago.
0:08:33 > 0:08:39And since then I've been working part-time as a consultant
0:08:39 > 0:08:41- for some people I've worked for in the past.- Right.
0:08:41 > 0:08:44But wanting to keep some time free to do other things,
0:08:44 > 0:08:47and this is one of the main things I would like to do.
0:08:47 > 0:08:51I think this will be the first of other properties I would buy,
0:08:51 > 0:08:54both inside London and also outside London.
0:08:54 > 0:08:55My intention is,
0:08:55 > 0:08:58within the next five years, to get a house outside London,
0:08:58 > 0:09:02ideally bought at auction, and do it up and have that as my main home.
0:09:02 > 0:09:04So Charles has a clear long-term goal,
0:09:04 > 0:09:07but to achieve that, first he needs to
0:09:07 > 0:09:10make this flat work as an investment.
0:09:11 > 0:09:13So tell me what you're going to do to it.
0:09:13 > 0:09:17We've got the kitchen behind us here in the room
0:09:17 > 0:09:21and I think because it is all part of the main living room, do a very good high-spec kitchen -
0:09:21 > 0:09:23integrated appliances,
0:09:23 > 0:09:26either granite or wooden worktops, that type of thing.
0:09:26 > 0:09:30The bathroom - completely redo that. It's very serviceable as it is,
0:09:30 > 0:09:32but I think go for a fully-tiled bathroom,
0:09:32 > 0:09:36good bathroom suite, good lighting.
0:09:36 > 0:09:38Bedroom fairly straightforward -
0:09:38 > 0:09:41put in some built-in cupboards and shelving.
0:09:41 > 0:09:42In a small flat this size,
0:09:42 > 0:09:44storage is always at a premium.
0:09:44 > 0:09:47Right. And is that something you're going to do yourself?
0:09:47 > 0:09:49I'll be overseeing it,
0:09:49 > 0:09:51but I won't be doing anything myself.
0:09:51 > 0:09:55I don't think you'd want to come and see the flat after I'd done everything!
0:09:55 > 0:09:57So what's the budget for the work?
0:09:57 > 0:09:59The budget is fairly flexible.
0:09:59 > 0:10:02I probably could get away with, say, £10,000 to £12,000,
0:10:02 > 0:10:05but I think if I go for a good spec,
0:10:05 > 0:10:08I'd want to get some very good builders to do it and do it fairly quickly.
0:10:08 > 0:10:11- I'm probably looking at nearer £20,000.- And the timescale?
0:10:11 > 0:10:13As quickly as possible, really.
0:10:13 > 0:10:16I reckon the work probably will take about two months.
0:10:16 > 0:10:20While Charles can control what he does to the inside of the flat,
0:10:20 > 0:10:24he has less control over the communal areas and the outside.
0:10:26 > 0:10:30Let's talk about the issues of the communal fees that are payable.
0:10:30 > 0:10:32What do you know about all that?
0:10:32 > 0:10:36At the moment, all I know is that there's an estimate
0:10:36 > 0:10:39for the repair of both this house and the one next door.
0:10:39 > 0:10:41There are six properties in the two
0:10:41 > 0:10:45and the estimate is round about £50,000,
0:10:45 > 0:10:48but my share of that is a lower percentage.
0:10:48 > 0:10:50I don't know when they're going to be done.
0:10:50 > 0:10:53It's the common parts in terms of the staircases, the entrance halls,
0:10:53 > 0:10:56the front doors, all the outside windows,
0:10:56 > 0:10:57the roof if it needs it.
0:10:57 > 0:11:02And in some ways, you don't mind contributing if the property in general is benefiting.
0:11:02 > 0:11:06That sort of kerbside appeal when you drive up to the house, it will look immediately very good.
0:11:06 > 0:11:09Come through the communal parts, they'll all look good,
0:11:09 > 0:11:12and then you come into the flat and it will hopefully look good as well.
0:11:12 > 0:11:15- Well, congratulations.- Thank you very much.- Good luck with it.
0:11:15 > 0:11:18- We look forward to seeing how it all turns out.- Absolutely.
0:11:18 > 0:11:19Thank you, Martin.
0:11:21 > 0:11:24Well, Charles seems to know his stuff,
0:11:24 > 0:11:26and seems to be prepared for any eventuality,
0:11:26 > 0:11:31although I don't like the idea of this slightly unknown
0:11:31 > 0:11:34bill for doing communal works.
0:11:34 > 0:11:37In terms of the flat itself, though, he's on the right lines
0:11:37 > 0:11:39and I look forward to seeing how he gets on.
0:11:39 > 0:11:41You can find out later in the show.
0:11:44 > 0:11:47Transport links are usually at the top of people's lists
0:11:47 > 0:11:49when it comes to property.
0:11:49 > 0:11:51And today's auction lot in Gillingham
0:11:51 > 0:11:53certainly doesn't disappoint.
0:11:53 > 0:11:57I've got my stopwatch here, and I'm going to time how long it takes me to get to the next property.
0:11:57 > 0:11:58Go!
0:12:01 > 0:12:04Well, the race is on to get to this lot,
0:12:04 > 0:12:06and this time I think I'm onto a winner!
0:12:12 > 0:12:13And stop.
0:12:15 > 0:12:1756 seconds.
0:12:17 > 0:12:18Get a load of that!
0:12:18 > 0:12:21That is amazing. 56 seconds!
0:12:21 > 0:12:25Here we are. Do you know what, I'm quite excited about this one.
0:12:25 > 0:12:27The guide price?
0:12:27 > 0:12:29£60,000 to £70,000.
0:12:31 > 0:12:34So less than a minute to a main-line station,
0:12:34 > 0:12:38with a 40-minute journey into London, is a definite plus.
0:12:38 > 0:12:41However, if you prefer the car to the train,
0:12:41 > 0:12:43then this place scores a big fat zero.
0:12:43 > 0:12:47There's no parking readily available, and this former office
0:12:47 > 0:12:50is hardly in the race for best-looking property of the year.
0:12:50 > 0:12:52Let's hope it's better inside.
0:12:56 > 0:12:58It's all a little bit depressing on the outside.
0:12:58 > 0:13:00It doesn't look terribly inviting.
0:13:00 > 0:13:04But once you're in, the biggest surprise ever, because look -
0:13:04 > 0:13:06one, two...two different doors,
0:13:06 > 0:13:08two different flats.
0:13:08 > 0:13:09Wow!
0:13:09 > 0:13:11And you can see straight away
0:13:11 > 0:13:14that somebody has already started work.
0:13:14 > 0:13:16Or it's been just left like this,
0:13:16 > 0:13:19but it's actually in quite good nick.
0:13:19 > 0:13:22It's been plastered, you've got little wires hanging out the ceilings,
0:13:22 > 0:13:25there's bags of cement.
0:13:25 > 0:13:28This excites me, because to find a property in this condition
0:13:28 > 0:13:30is quite good news, actually.
0:13:30 > 0:13:32# Give me some good news
0:13:34 > 0:13:37# Give me some good news... #
0:13:37 > 0:13:39And there's more good news.
0:13:39 > 0:13:43This property originally had planning for mixed business and residential use,
0:13:43 > 0:13:48but in 2006, permission was obtained to convert it into two flats.
0:13:48 > 0:13:51The first flat consists of the ground floor and basement,
0:13:51 > 0:13:54which unfortunately, we can't access today.
0:13:54 > 0:13:57The second flat is on the first floor and the attic.
0:13:59 > 0:14:01Planning allows for both flats to have two bedrooms.
0:14:01 > 0:14:05They each also have a share of the overgrown garden at the back.
0:14:05 > 0:14:08Although the quality of this work so far seems pretty good,
0:14:08 > 0:14:12you should always have it checked to make sure it meets current building regulations.
0:14:12 > 0:14:17But as both flats appear to be pretty close to first-fix stage,
0:14:17 > 0:14:19this seems to be an unexpected bonus
0:14:19 > 0:14:23for a building that was guided at £60,000 to £70,000
0:14:23 > 0:14:27and from the outside at least, didn't look that promising.
0:14:28 > 0:14:32It was all going so well! There had to be a fly in the ointment, didn't there?
0:14:32 > 0:14:35Hmm. And it's here
0:14:35 > 0:14:37in the auction particulars, I'm afraid.
0:14:37 > 0:14:39Planning permission was granted
0:14:39 > 0:14:42for conversion of a building
0:14:42 > 0:14:46from office dwelling to form two two-bedroom self-contained flats.
0:14:46 > 0:14:47But unfortunately,
0:14:47 > 0:14:52permission lapsed, and so if you wanted to continue
0:14:52 > 0:14:54with the work and keep this layout as it is,
0:14:54 > 0:14:58I would make it my business to contact the local council first
0:14:58 > 0:15:00before you count your chickens.
0:15:03 > 0:15:05# Illusion
0:15:08 > 0:15:10# Illusion... #
0:15:10 > 0:15:14So all this completed work here might just be an illusion.
0:15:14 > 0:15:16One of the reasons planning permission can lapse
0:15:16 > 0:15:20is if work hasn't started within a specific timeframe.
0:15:20 > 0:15:23Clearly work HAS started here,
0:15:23 > 0:15:26so you would need to talk to local planners to check whether it's all valid.
0:15:26 > 0:15:28All may not be quite as it seems.
0:15:28 > 0:15:31Now, it's not my preferred option,
0:15:31 > 0:15:35but there is a second option, and I think it could prove to be the most lucrative.
0:15:35 > 0:15:37How about turning this into a single dwelling
0:15:37 > 0:15:40and renting out each room individually?
0:15:40 > 0:15:43The University of Kent has a campus in Gillingham
0:15:43 > 0:15:45and it really is less than a mile away,
0:15:45 > 0:15:47so it could be a bit of a money-spinner.
0:15:47 > 0:15:50The downside to student lets
0:15:50 > 0:15:53is that you need to seek all the appropriate permissions
0:15:53 > 0:15:55to make it suitable for multiple occupancy.
0:15:55 > 0:15:59Additionally, student lets are generally not a full year
0:15:59 > 0:16:03and of course, there will be a turnover of tenants that you have to manage.
0:16:03 > 0:16:07All things considered, I think I'd be picking up the work that's already been started
0:16:07 > 0:16:09and keeping it as two flats.
0:16:10 > 0:16:13What does a local estate agent think?
0:16:18 > 0:16:21I think what would work best here would be as it seems to be laid out,
0:16:21 > 0:16:22as two separate flats.
0:16:22 > 0:16:25From a financial point of view,
0:16:25 > 0:16:28what could generate the best return from this place,
0:16:28 > 0:16:30guided at £60,000 to £70,000?
0:16:30 > 0:16:33I can sell a two-bedroom flat in this area
0:16:33 > 0:16:37for a price in the region of £90,000 to £110,000.
0:16:37 > 0:16:40I think I could rent the property out
0:16:40 > 0:16:45for a figure between £575 and £600 per month.
0:16:45 > 0:16:47As a student let?
0:16:47 > 0:16:50Student let, I could rent each room out
0:16:50 > 0:16:55for a figure in the region of £85 to £95 per week.
0:16:57 > 0:16:59Well, there's no doubt that financially, room by room,
0:16:59 > 0:17:01rental may be the best option.
0:17:01 > 0:17:03But in practical terms,
0:17:03 > 0:17:04I'm not so sure.
0:17:06 > 0:17:09Well, I think it's great to have options, isn't it?
0:17:09 > 0:17:12And this little lot offers a whole multitude.
0:17:12 > 0:17:14Let's see who fancied this property with potential
0:17:14 > 0:17:16when it went under the hammer.
0:17:19 > 0:17:21Lot 87 - this freehold refurbishment
0:17:21 > 0:17:23and conversion project for two flats.
0:17:23 > 0:17:26So, guide is £60,000 to £70,000.
0:17:26 > 0:17:28Anyone going to pop in at £60,000 for this one?
0:17:28 > 0:17:30I'm on the way at £60,000.
0:17:30 > 0:17:32And 2 now. 62 I'm bid.
0:17:32 > 0:17:3365.
0:17:33 > 0:17:3565, 67.
0:17:35 > 0:17:36And 70...and 2.
0:17:36 > 0:17:3872 and 4.
0:17:38 > 0:17:40£74,000.
0:17:40 > 0:17:41And £76,000.
0:17:41 > 0:17:4378, may I say? 78.
0:17:43 > 0:17:45Up to 80...and 2.
0:17:45 > 0:17:4882. It's against you at 82.
0:17:48 > 0:17:4984. 86.
0:17:49 > 0:17:5186...88.
0:17:51 > 0:17:53And 90.
0:17:53 > 0:17:55At £90,000...and 2.
0:17:55 > 0:17:56And 4.
0:17:56 > 0:17:5894...and 6.
0:17:58 > 0:17:5996.
0:17:59 > 0:18:01And 8...98.
0:18:01 > 0:18:02And 100?
0:18:02 > 0:18:06Go 99. I think it's like an ice cream. 99, can I say?
0:18:07 > 0:18:0999. One more?
0:18:09 > 0:18:11At £98,000 I've got. 99 anywhere else?
0:18:11 > 0:18:14If not, £98,000 for the first time...
0:18:14 > 0:18:1698 for the second...
0:18:16 > 0:18:19Third and final time at £98,000.
0:18:19 > 0:18:21Yours, sir, at 98.
0:18:22 > 0:18:23So for £98,000, the new owner
0:18:23 > 0:18:26of the Gillingham property is Sean.
0:18:28 > 0:18:31He lives just under an hour away in Tunbridge Wells
0:18:31 > 0:18:33and this will be his second development project.
0:18:35 > 0:18:37- Sean, congratulations.- Thank you.
0:18:37 > 0:18:40Lovely to meet you. So why did you want to buy this property?
0:18:40 > 0:18:43The price was definitely a factor
0:18:43 > 0:18:47and I had a look at the legal documentation
0:18:47 > 0:18:49from the website on the property.
0:18:49 > 0:18:51It sounded at least interesting.
0:18:51 > 0:18:53Interesting enough to come out and view it,
0:18:53 > 0:18:55which I did.
0:18:55 > 0:18:57So when you say you viewed it,
0:18:57 > 0:19:00did you come inside and have a good look around?
0:19:00 > 0:19:02I wasn't able to come inside
0:19:02 > 0:19:07to the property, because it was... I think "mortgages not in possession"
0:19:07 > 0:19:09was the term...
0:19:09 > 0:19:12- So you weren't allowed to view the property - is that what you're saying?- No.
0:19:12 > 0:19:14- You couldn't get inside?- I couldn't get inside.
0:19:14 > 0:19:19- I could just view as best I could from the outside.- Now, when you stand outside the front of the property,
0:19:19 > 0:19:20you do not for one minute
0:19:20 > 0:19:23think that it will be like this.
0:19:23 > 0:19:25This is vast.
0:19:25 > 0:19:27It goes on for days.
0:19:27 > 0:19:30Were you shocked when you came in here for the first time?
0:19:30 > 0:19:32Were you pleased?
0:19:32 > 0:19:35Yes, I was... I was pleased, yes.
0:19:35 > 0:19:36- Pleasantly surprised?- Yes.
0:19:36 > 0:19:38Obviously, it's not perfect
0:19:38 > 0:19:42and obviously, it's been a work in progress, but yes, definitely.
0:19:42 > 0:19:44Well, at first sight, it IS a pleasant surprise.
0:19:44 > 0:19:48But I'm still not sure that what you see is what you get.
0:19:48 > 0:19:51Hopefully, Sean will help me work it out.
0:19:53 > 0:19:57Currently, as it stands, is this one dwelling
0:19:57 > 0:19:59or is it two flats?
0:19:59 > 0:20:00As it stands,
0:20:00 > 0:20:04the work has already begun to turn it into two flats,
0:20:04 > 0:20:06and it's quite advanced,
0:20:06 > 0:20:09so it is essentially two self-contained flats.
0:20:09 > 0:20:13But have you now got to go back to the council and reapply for that permission
0:20:13 > 0:20:15because it has lapsed?
0:20:15 > 0:20:17From the information they've given me so far,
0:20:17 > 0:20:20as it stands,
0:20:20 > 0:20:23if it's just a case of finishing off
0:20:23 > 0:20:27the work that needs to be done so that it becomes two self-contained flats...
0:20:27 > 0:20:29But obviously, as we can see, it's not finished yet,
0:20:29 > 0:20:32so what sort of budget have you got to finish the work?
0:20:32 > 0:20:35At present, I have...
0:20:35 > 0:20:37- maybe £35,000.- OK.
0:20:37 > 0:20:42Once Sean has definitely got the green light from the council on the building status,
0:20:42 > 0:20:45he'll employ a team of builders to finish the work,
0:20:45 > 0:20:47which he expects to take three to four months.
0:20:49 > 0:20:51Have you ever done anything like this before?
0:20:51 > 0:20:53Well, I just have a flat in Tunbridge Wells,
0:20:53 > 0:20:55which I've renovated
0:20:55 > 0:20:57and let out.
0:20:57 > 0:21:00So it was...
0:21:00 > 0:21:02It was a smaller project than this is going to be, but...
0:21:02 > 0:21:04but that's about it.
0:21:04 > 0:21:07Is this going to be your main job? Are you currently working?
0:21:07 > 0:21:10I'm not currently working on another job.
0:21:10 > 0:21:13I've done a number of main jobs in the past.
0:21:13 > 0:21:16I worked as a chef.
0:21:16 > 0:21:17Um...
0:21:17 > 0:21:21Did teaching English as a foreign language.
0:21:21 > 0:21:24I worked on a helpdesk, IT support.
0:21:24 > 0:21:27So varied! And now here you are, property developing.
0:21:27 > 0:21:29Yeah, that's the plan.
0:21:29 > 0:21:30Sean, good luck with this project.
0:21:30 > 0:21:33- I can't wait to see the outcome. - Cheers.- Well done. Thank you.
0:21:35 > 0:21:37I think Sean's got himself a pretty good deal here.
0:21:37 > 0:21:40This could turn out to be a real cash cow,
0:21:40 > 0:21:42if things go his way.
0:21:42 > 0:21:46But the big dark cloud that's hanging over this property
0:21:46 > 0:21:48is the issue of planning.
0:21:48 > 0:21:50How will it turn out?
0:21:50 > 0:21:52You can join me later in the programme
0:21:52 > 0:21:53if you want to find out.
0:21:54 > 0:21:56Coming up... In Ilkeston, Derbyshire,
0:21:56 > 0:21:59this lot could be twice as nice.
0:21:59 > 0:22:01One property that was formerly two.
0:22:01 > 0:22:04That could be double the profit, perhaps.
0:22:04 > 0:22:06We return to Gillingham in Kent
0:22:06 > 0:22:09to find out if Sean's gamble has paid off.
0:22:09 > 0:22:12I would consider buying a property
0:22:12 > 0:22:14without looking inside again.
0:22:16 > 0:22:18But first, it's back to London
0:22:18 > 0:22:20to see what Charles got for his money.
0:22:20 > 0:22:24It was all a conscious decision to take it to a high spec.
0:22:26 > 0:22:30It was in the West London area of Hammersmith
0:22:30 > 0:22:33where we came across this first-floor, one-bedroom flat,
0:22:33 > 0:22:36located in an elegant Victorian building.
0:22:36 > 0:22:39The flat was, well, small
0:22:39 > 0:22:42but in perfectly reasonable condition.
0:22:44 > 0:22:46Decent bathroom, a serviceable kitchen
0:22:46 > 0:22:48and it came with a long lease.
0:22:51 > 0:22:55But its location meant it came with a hefty price tag.
0:22:55 > 0:22:58Guided at £225,000, it was sold at auction
0:22:58 > 0:23:02for £254,000 to London-based banker Charles
0:23:02 > 0:23:05as an investment property.
0:23:09 > 0:23:10But I had barely seen it.
0:23:10 > 0:23:15I came in just as they were closing the door, so really it was a 30-second round.
0:23:15 > 0:23:17And just make sure that the ceilings weren't coming down
0:23:17 > 0:23:19and the building wasn't falling down.
0:23:19 > 0:23:23- So you spent over a quarter of a million pounds on 30 seconds' glance?- Yes.
0:23:23 > 0:23:27Well, despite the quick visit, Charles had done his homework.
0:23:27 > 0:23:31He knew, for instance, that there was some work to be done
0:23:31 > 0:23:33on the communal areas of the flat
0:23:33 > 0:23:35and that he would incur additional expenses.
0:23:35 > 0:23:39But even so, he felt that not only could he improve the flat,
0:23:39 > 0:23:41he could improve its value as well
0:23:41 > 0:23:44and that either on the rent or resale market,
0:23:44 > 0:23:46there was money to be made.
0:23:46 > 0:23:49So, armed with a flexible £20,000 budget,
0:23:49 > 0:23:52he hoped to have the work completed in two months.
0:23:56 > 0:23:58Now, just under four months later,
0:23:58 > 0:24:00we're back to see how he's got on.
0:24:01 > 0:24:04Is Charles looking at a successful outcome?
0:24:07 > 0:24:10We've really carried out a complete refurbishment.
0:24:12 > 0:24:14We have new floors.
0:24:16 > 0:24:17Completely new bathroom.
0:24:22 > 0:24:24Replaced all doors,
0:24:24 > 0:24:26all skirting boards,
0:24:26 > 0:24:27all door frames.
0:24:29 > 0:24:32Basically, everything you can see in the property
0:24:32 > 0:24:34is now new. Nothing has been carried over from before.
0:24:35 > 0:24:37So it's all looking good.
0:24:37 > 0:24:40But Charles's key aim was to improve the kitchen.
0:24:42 > 0:24:45And it certainly looks as though he's achieved that.
0:24:50 > 0:24:52Well, here we have the kitchen.
0:24:52 > 0:24:55On the right-hand side, there was the large built-in cupboard
0:24:55 > 0:24:57that houses all the pipes -
0:24:57 > 0:24:59gas pipes, water pipes coming in,
0:24:59 > 0:25:01the gas meter, electric meters.
0:25:01 > 0:25:02Taking up a lot of space,
0:25:02 > 0:25:05so that has come out and been replaced by a tower cabinet
0:25:05 > 0:25:08that is now part of the kitchen itself.
0:25:08 > 0:25:11We have, obviously, the work surface here with the sink
0:25:11 > 0:25:13and the hob and oven,
0:25:13 > 0:25:14with a built-in dishwasher here.
0:25:14 > 0:25:17Drawers...
0:25:17 > 0:25:18full-size washing machine
0:25:18 > 0:25:21and a built-in microwave.
0:25:21 > 0:25:23Very well-equipped kitchen
0:25:23 > 0:25:25in what is not an enormous space,
0:25:25 > 0:25:27but I think we have maximised that.
0:25:27 > 0:25:30And the result... I think it looks very good.
0:25:30 > 0:25:31I'm very pleased with it.
0:25:31 > 0:25:33The flat really has come together,
0:25:33 > 0:25:36and the work was in fact completed in two-and-a-half months.
0:25:42 > 0:25:44Has Charles enjoyed the process?
0:25:44 > 0:25:46Yes, it has been fun.
0:25:46 > 0:25:48It's been great fun.
0:25:48 > 0:25:50Um...there have been a few times
0:25:50 > 0:25:52scheduling all the different trades
0:25:52 > 0:25:56has meant a tremendous lot of different people working through here, but it's gone very well.
0:25:56 > 0:25:58I had a very good team of builders,
0:25:58 > 0:26:01who have produced a fabulous result.
0:26:01 > 0:26:03They're all craftsmen in what they do.
0:26:03 > 0:26:05And the result is what you can see.
0:26:07 > 0:26:11Charles's role was just to oversee and check the finish of the work,
0:26:11 > 0:26:14and, of course, to provide the funds to pay for it.
0:26:16 > 0:26:18The budget... I think initially
0:26:18 > 0:26:22I said the budget would be around £20,000 to £25,000.
0:26:22 > 0:26:25I have gone over £25,000.
0:26:25 > 0:26:27And that really was a conscious decision to use
0:26:27 > 0:26:32higher-quality products - things like the oak floor,
0:26:32 > 0:26:34higher-quality appliances.
0:26:34 > 0:26:38We did replace, in the end... All the windows were actually refurbished as well.
0:26:38 > 0:26:41We did replace all the skirting board and door frames.
0:26:41 > 0:26:44We're probably round about the £27,000 mark,
0:26:44 > 0:26:46so I'm not unhappy with the budget.
0:26:46 > 0:26:47We didn't have any nasty surprises
0:26:47 > 0:26:49and it was all a conscious decision
0:26:49 > 0:26:51to take it to a high spec.
0:26:51 > 0:26:57A £27,000 spend on top of his £254,000 purchase price
0:26:57 > 0:27:00takes Charles's total outlay, without fees,
0:27:00 > 0:27:03to £281,000.
0:27:03 > 0:27:06There's still the cost of work to the communal areas in the building to come -
0:27:06 > 0:27:09something in the region of £5,000 to £10,000.
0:27:09 > 0:27:13So can this still add up to be a wise purchase?
0:27:13 > 0:27:16What do two local estate agents think?
0:27:17 > 0:27:20Coming back today, the owner has done a brilliant job on the property.
0:27:20 > 0:27:22The standard of finish is fantastic.
0:27:22 > 0:27:25I particularly like the quality of the bathroom suite
0:27:25 > 0:27:28that he's put in, with the tiling, together with the kitchen.
0:27:28 > 0:27:31It's really nice to see somebody's done such a professional,
0:27:31 > 0:27:33well-finished, high-quality job.
0:27:33 > 0:27:36The standard of the work that's been done looks to be pretty good,
0:27:36 > 0:27:39on first impressions. There's nothing that's obvious
0:27:39 > 0:27:41that needs to be done or needs attention.
0:27:41 > 0:27:45So I think the refurbishment is pretty much 10 out of 10.
0:27:45 > 0:27:47Well, top marks for the finish.
0:27:47 > 0:27:51But with a current outlay of £281,000
0:27:51 > 0:27:53on this one-bedroom flat,
0:27:53 > 0:27:55plus potentially a further £5,000 to £10,000
0:27:55 > 0:27:57for the work on the communal areas,
0:27:57 > 0:28:01can Charles expect to see any profit if he sells it on?
0:28:03 > 0:28:06I would put it on the market for round about £310,000
0:28:06 > 0:28:10and I would expect to obtain offers very close to that.
0:28:10 > 0:28:12In the current market, I would recommend an asking price
0:28:12 > 0:28:14of between £310,000 and £315,000
0:28:14 > 0:28:17and would expect to achieve offers close to that.
0:28:17 > 0:28:20Those are certainly the figures I was expecting.
0:28:20 > 0:28:22I will get some other agents round
0:28:22 > 0:28:23and see what they think.
0:28:23 > 0:28:25I would have thought a minimum of 310.
0:28:25 > 0:28:30That does give me round about a £20,000 profit.
0:28:30 > 0:28:32Yes, as Charles says,
0:28:32 > 0:28:35he could expect a pre-tax profit of around £20,000-plus.
0:28:35 > 0:28:40But he's currently undecided whether to sell or let the flat.
0:28:40 > 0:28:42I would expect to obtain a rental
0:28:42 > 0:28:46of between £1,300 and £1,350 per calendar month.
0:28:46 > 0:28:49If we're putting the property on the rental market,
0:28:49 > 0:28:50I would recommend an asking price
0:28:50 > 0:28:53somewhere in the region of £1,300 per month.
0:28:53 > 0:28:56I think those are the figures I was exactly expecting to hear.
0:28:56 > 0:29:00I mean, I think when it comes to it, I might expect to do a little bit better than that.
0:29:00 > 0:29:02We'll see in the coming weeks.
0:29:02 > 0:29:04£1,300 per calendar month
0:29:04 > 0:29:07would generate a yield of around 5%.
0:29:07 > 0:29:11Is that enough to tempt him to keep it as a long-term rental?
0:29:11 > 0:29:13I'm tempted to keep it, because I like the property.
0:29:13 > 0:29:15The location is so good.
0:29:15 > 0:29:18And it would be a property that would be a very easy place to live.
0:29:22 > 0:29:25This is Ilkeston in Derbyshire,
0:29:25 > 0:29:29a town close to both the cities of Derby and Nottingham.
0:29:29 > 0:29:32Once a major player in the steel industry,
0:29:32 > 0:29:35you can still see clues to its illustrious past
0:29:35 > 0:29:38in some of the architecture in the town centre.
0:29:38 > 0:29:42The property I'm here to see is only a short bus ride away from here
0:29:42 > 0:29:46on the edge of Ilkeston, on an estate known as Cotmanhay.
0:29:46 > 0:29:49Well, like many places, the property market in Cotmanhay
0:29:49 > 0:29:51has been through some tough times in recent years.
0:29:51 > 0:29:54But that said, the property that was up for auction
0:29:54 > 0:29:56sounds to me like it could be a good deal.
0:29:56 > 0:29:58It's these houses here -
0:29:58 > 0:30:02they're actually two semi-detacheds which have been converted into one.
0:30:02 > 0:30:04The guide price was £68,000.
0:30:04 > 0:30:06I'd love to look inside...
0:30:06 > 0:30:07but there's a slight issue.
0:30:07 > 0:30:09I can't get in. Better go round the side.
0:30:09 > 0:30:11# Gonna build a big fence
0:30:11 > 0:30:13# Around my baby
0:30:14 > 0:30:16# Oh yeah
0:30:16 > 0:30:18# Build a big fence around my baby
0:30:18 > 0:30:20# So they can't steal my baby from me... #
0:30:20 > 0:30:24This rather forbidding fence and a messy garden
0:30:24 > 0:30:26don't exactly scream "kerb appeal".
0:30:26 > 0:30:29I hope the inside will be more welcoming.
0:30:31 > 0:30:34Now, I have been told that this property
0:30:34 > 0:30:36until recently was used as a family support centre.
0:30:36 > 0:30:40So, originally two houses, knocked into one.
0:30:40 > 0:30:42What are we going to find?
0:30:42 > 0:30:44Well, through the side door there
0:30:44 > 0:30:46into a fairly sort of...
0:30:46 > 0:30:48if you like, commercial-style kitchen space.
0:30:48 > 0:30:53But straight away, nothing too untoward in terms of damp or...
0:30:53 > 0:30:56Structurally speaking,
0:30:56 > 0:30:57it all looks pretty good.
0:30:57 > 0:30:59Through here, a rear sort of...
0:30:59 > 0:31:01Well, I won't call it a living room -
0:31:01 > 0:31:03it's just a space there.
0:31:03 > 0:31:06Um...hallway area...
0:31:06 > 0:31:08I mean, it all seems quite - what's the word? -
0:31:08 > 0:31:11quite utilitarian right now,
0:31:11 > 0:31:13because it was a functional space.
0:31:13 > 0:31:16Up until then, fairly standard, though, I suppose.
0:31:16 > 0:31:18Until you get to this point,
0:31:18 > 0:31:21where the two houses have been knocked into one.
0:31:21 > 0:31:24The good news is that, clearly to put them back into two,
0:31:24 > 0:31:29would really mean just blocking that up and then sorting out things
0:31:29 > 0:31:30like kitchens and bathrooms.
0:31:30 > 0:31:33Because in this side you've got basically a mirror image.
0:31:33 > 0:31:35Stairs up to the bedrooms and bathrooms there,
0:31:35 > 0:31:37more rooms at the back, another kitchen area there.
0:31:37 > 0:31:39Front door on either side here.
0:31:39 > 0:31:41You get the kind of idea.
0:31:41 > 0:31:44Um...one property that was formerly two...
0:31:44 > 0:31:47That could be double the profit, perhaps.
0:31:47 > 0:31:49# What I've been saying
0:31:50 > 0:31:52# Has been so true
0:31:52 > 0:31:57# Everything is twice as nice Between me and you... #
0:31:59 > 0:32:01Yes, this could be twice as nice,
0:32:01 > 0:32:04because, quite simply, there's two of everything here.
0:32:04 > 0:32:07Two kitchens, two lounges,
0:32:07 > 0:32:08two bathrooms
0:32:08 > 0:32:11and three bedrooms on each side.
0:32:11 > 0:32:13Yes, there has been some adaptation
0:32:13 > 0:32:16to make the rooms more suitable for office space,
0:32:16 > 0:32:18but it really wouldn't take too much
0:32:18 > 0:32:21to turn this one lot back into two semis.
0:32:22 > 0:32:24Well, out at the rear of the property...
0:32:24 > 0:32:26first thing you notice... Ah, yes -
0:32:26 > 0:32:30music from the right, music from the left. It's obviously quite a lively area,
0:32:30 > 0:32:32but noisy neighbours can be an issue.
0:32:32 > 0:32:34It's something you should definitely bear in mind,
0:32:34 > 0:32:36especially when you come to see properties.
0:32:36 > 0:32:39But out at the back here, what have you got?
0:32:39 > 0:32:42A garden? No! It's certainly low-maintenance.
0:32:42 > 0:32:44Lots and lots and lots of Tarmac.
0:32:44 > 0:32:48Again, alluding to the property's previous existence.
0:32:48 > 0:32:50The problem with this is...
0:32:50 > 0:32:52Well, it's great if you've got about 15 cars to park,
0:32:52 > 0:32:54but for normal people who want a garden,
0:32:54 > 0:32:57it's actually going to cost quite a lot of money to get this taken up.
0:32:57 > 0:33:00But just doing that, suddenly you start to get back
0:33:00 > 0:33:03into this whole thing of converting this back into what it should be,
0:33:03 > 0:33:05really, which is two semi-detacheds.
0:33:07 > 0:33:10I certainly wouldn't underestimate just how much the outside of this property
0:33:10 > 0:33:12is going to eat into any budget,
0:33:12 > 0:33:16and that's before you spend anything on the garden.
0:33:17 > 0:33:19# Can you dig it?
0:33:19 > 0:33:21# Oh, yeah... #
0:33:21 > 0:33:23Removing the concrete and fencing at the front
0:33:23 > 0:33:26is also going to cost a pretty penny,
0:33:26 > 0:33:28which definitely has to be factored in.
0:33:28 > 0:33:30What does a local property expert think?
0:33:30 > 0:33:33Does he "dig" this double lot?
0:33:39 > 0:33:43First impressions of the property are it's typical of a property owned
0:33:43 > 0:33:44by a local authority.
0:33:44 > 0:33:47It's been well maintained, it's been basically modernised,
0:33:47 > 0:33:50it's been rewired, it's got a modern heating system,
0:33:50 > 0:33:52it's got new double-glazed windows.
0:33:52 > 0:33:55All the basics that you would want to build on.
0:33:55 > 0:33:57But I think the most likely and the most profitable
0:33:57 > 0:34:01option for someone looking to buy this as an investment,
0:34:01 > 0:34:02as a development opportunity,
0:34:02 > 0:34:07is to put the property back into two semi-detached houses,
0:34:07 > 0:34:08as it was originally.
0:34:08 > 0:34:10I think that would be the lowest-cost option,
0:34:10 > 0:34:14and there would be a ready market for the two semi-detached houses you'd be left with.
0:34:14 > 0:34:16So we're all in agreement, then.
0:34:16 > 0:34:19With the whole lot guided at £68,000,
0:34:19 > 0:34:22and providing planning permission was granted
0:34:22 > 0:34:25to convert it back into two three-bedroom semis,
0:34:25 > 0:34:29what could each of the houses sell for in the current market?
0:34:29 > 0:34:31Renovated to a good standard
0:34:31 > 0:34:35and made attractive with nice modern up-to-date fittings,
0:34:35 > 0:34:38I think they would sell for round about £80,000 each.
0:34:38 > 0:34:39What about rental?
0:34:39 > 0:34:41There's a strong rental market in this area
0:34:41 > 0:34:44and I would expect that each property would achieve
0:34:44 > 0:34:46£450 rent per calendar month.
0:34:46 > 0:34:48If those two properties went for
0:34:48 > 0:34:51anything near that £68,000 guide price,
0:34:51 > 0:34:54and the renovation budget was sensible,
0:34:54 > 0:34:57they could offer an excellent yield and steady income
0:34:57 > 0:35:00in a market where houses are hard to sell quickly.
0:35:05 > 0:35:09Well, an interesting and potentially lucrative project, this one.
0:35:09 > 0:35:11But it all relies on getting that planning permission
0:35:11 > 0:35:14to convert it back into two properties,
0:35:14 > 0:35:16and keeping a tight rein on the budget.
0:35:16 > 0:35:18Let's see who fancied taking it on
0:35:18 > 0:35:19when it went under the hammer.
0:35:23 > 0:35:27Lot 28 is a pair of three-bedroom semi-detached houses,
0:35:27 > 0:35:32used over recent years as a community office.
0:35:32 > 0:35:3468? 65?
0:35:34 > 0:35:37Thank you. £65,000 is the opening bid.
0:35:37 > 0:35:39At £65,000.
0:35:39 > 0:35:4066.
0:35:40 > 0:35:4167.
0:35:41 > 0:35:4367. 68?
0:35:43 > 0:35:4468.
0:35:44 > 0:35:46At 68. 69.
0:35:46 > 0:35:48£69,000.
0:35:48 > 0:35:49At 70.
0:35:49 > 0:35:50At £70,000.
0:35:50 > 0:35:5271. 72?
0:35:52 > 0:35:5372.
0:35:53 > 0:35:5473.
0:35:54 > 0:35:5574.
0:35:55 > 0:35:57£74,000.
0:35:57 > 0:35:5875.
0:35:58 > 0:35:5976.
0:35:59 > 0:36:0177.
0:36:01 > 0:36:0278.
0:36:02 > 0:36:0379.
0:36:03 > 0:36:05£80,000.
0:36:05 > 0:36:0681. 82.
0:36:06 > 0:36:0883.
0:36:08 > 0:36:0984.
0:36:09 > 0:36:1085.
0:36:10 > 0:36:1186.
0:36:12 > 0:36:1487.
0:36:15 > 0:36:16£86,500.
0:36:16 > 0:36:1787.
0:36:17 > 0:36:19£87,500?
0:36:19 > 0:36:21£87,500. 88.
0:36:21 > 0:36:23£88,500.
0:36:23 > 0:36:2489.
0:36:24 > 0:36:26And a half.
0:36:26 > 0:36:27£90,000.
0:36:27 > 0:36:29500.
0:36:29 > 0:36:3091.
0:36:30 > 0:36:31And a half.
0:36:31 > 0:36:3392.
0:36:33 > 0:36:35£92,500.
0:36:35 > 0:36:3693, sir?
0:36:36 > 0:36:3793.
0:36:37 > 0:36:39£93,000, against you.
0:36:40 > 0:36:42At £93,000 once...
0:36:42 > 0:36:44twice...
0:36:44 > 0:36:45third time...
0:36:45 > 0:36:47Yours at £93,000. Thank you.
0:36:47 > 0:36:49So, for £93,000,
0:36:49 > 0:36:52the successful bidders for the former office
0:36:52 > 0:36:55were Nottingham-based couple Dave and Zoe.
0:36:55 > 0:36:57Dave owns a car-dismantling company,
0:36:57 > 0:37:01while Zoe's just finished training to be a social worker.
0:37:01 > 0:37:04They've recently started a small property-developing company together.
0:37:06 > 0:37:07Zoe joined me at the property
0:37:07 > 0:37:11to tell me more about their second business purchase.
0:37:14 > 0:37:15- Zoe, great to meet you.- Thank you.
0:37:15 > 0:37:17- Congratulations.- Thank you.
0:37:17 > 0:37:19Tell me why you wanted to buy
0:37:19 > 0:37:22- this property?- We were looking at a few.
0:37:22 > 0:37:24We've done a few of our own houses up
0:37:24 > 0:37:26and we wanted to start doing it as a business.
0:37:26 > 0:37:29- So who's "we"?- Me and my partner, Dave.- Right, OK.
0:37:29 > 0:37:31And did you both have property experience?
0:37:31 > 0:37:34We've both done ones up that we were living in previously.
0:37:34 > 0:37:38And we've bought what was previously his grandma's house
0:37:38 > 0:37:40- and did all that up from scratch. - Right.
0:37:40 > 0:37:42When did you see the property?
0:37:42 > 0:37:45- When we got the keys!- No!
0:37:45 > 0:37:48Yeah. It was my 30th birthday party the day of the viewing.
0:37:48 > 0:37:51We did send somebody and they took photos,
0:37:51 > 0:37:53so we'd seen it on photos but not actually seen inside the property.
0:37:53 > 0:37:57- So you were too busy partying? - Yeah!
0:37:57 > 0:37:59Did it turn out to be a good birthday present?
0:37:59 > 0:38:03Yeah. Yeah, we was quite pleasantly surprised
0:38:03 > 0:38:05when we walked in last Thursday.
0:38:05 > 0:38:07# Happy birthday to you
0:38:08 > 0:38:10# Happy birthday to you
0:38:11 > 0:38:13# Happy birthday... #
0:38:13 > 0:38:15I'm glad it was a pleasant surprise for Zoe,
0:38:15 > 0:38:18but it's not an approach I'd recommend
0:38:18 > 0:38:21when you're spending £93,000.
0:38:21 > 0:38:24At present, this is considered an office block,
0:38:24 > 0:38:26so what are their plans for it?
0:38:26 > 0:38:29We're hoping, because it was originally two houses,
0:38:29 > 0:38:33it won't be too much trouble to get planning to put it back to the two houses.
0:38:33 > 0:38:35Right. And with a view to what?
0:38:35 > 0:38:40- To sell them.- OK. What about the idea of renting them out? Is that something you've considered?
0:38:40 > 0:38:41No. It's not.
0:38:41 > 0:38:43We want to sell them.
0:38:43 > 0:38:47Have you gone into the numbers in any great detail, in terms of how much it'll cost?
0:38:47 > 0:38:51We did the homework before we went to the auction. Read the legal pack.
0:38:51 > 0:38:56On the legal pack, it said we had to pay the council selling fees and solicitors' fees and stuff,
0:38:56 > 0:38:59so we worked that into what we were willing to bid for it.
0:38:59 > 0:39:03Um...and we're hoping to spend about 12 on each.
0:39:03 > 0:39:07Um...so, hopefully, we'll make a decent profit.
0:39:07 > 0:39:10Roughly how much do you think you might make? What might they sell for?
0:39:10 > 0:39:14We're looking at having about 60 in each, 65 in each,
0:39:14 > 0:39:17and putting them on for 75.
0:39:17 > 0:39:20So Zoe and Dave have thought through the numbers carefully here.
0:39:20 > 0:39:23And it just shows you the value of reading the legal pack.
0:39:23 > 0:39:26The hammer fell at £93,000,
0:39:26 > 0:39:29but they had to stump up another £2,412
0:39:29 > 0:39:31to cover the council fees.
0:39:31 > 0:39:36They're planning to spend no more than a maximum of £12,000 per property,
0:39:36 > 0:39:38inclusive of all the fees.
0:39:38 > 0:39:41They hope to make £10,000 to £15,000 on each house
0:39:41 > 0:39:44and to complete the project in six months,
0:39:44 > 0:39:46using contractors to do the work.
0:39:46 > 0:39:48So tell me what you're going to do. What's the plan?
0:39:48 > 0:39:50Redecorate everywhere.
0:39:50 > 0:39:52New kitchen, new bathroom in each.
0:39:52 > 0:39:56Obviously, brick the archway up between the two houses.
0:39:56 > 0:39:58Obviously, decorate, paint the bedrooms,
0:39:58 > 0:40:00put new carpets, flooring down.
0:40:00 > 0:40:03And then in here, we were hoping to take the door
0:40:03 > 0:40:06and the window out and put some French doors onto the garden.
0:40:06 > 0:40:07Oh, right. OK.
0:40:07 > 0:40:11Now, we are surrounded by a bit of a security zone, aren't we?
0:40:11 > 0:40:12With the fence and the...
0:40:12 > 0:40:15Lots of concrete or Tarmac out the back.
0:40:15 > 0:40:17What are you going to do about all that?
0:40:17 > 0:40:20The fence will go. We'll leave it up in the meantime
0:40:20 > 0:40:23while we're doing the houses, because it's good security.
0:40:23 > 0:40:27But we're going to take them out and re-fence all the way round.
0:40:27 > 0:40:30And in the garden, we're putting decking down,
0:40:30 > 0:40:33taking the rest of the Tarmac up and putting turf down.
0:40:33 > 0:40:35- Right.- And a driveway on each at the front.
0:40:35 > 0:40:38- Right. Well, congratulations. Good luck with it.- Thank you.
0:40:38 > 0:40:41- Look forward to seeing how you get on.- Thank you.
0:40:41 > 0:40:45Well, Zoe and her partner have certainly got work to do
0:40:45 > 0:40:49to turn this into two houses, as they were originally.
0:40:49 > 0:40:51But it all relies on that planning permission,
0:40:51 > 0:40:56and it seems to me like their budgets and potential profits are a bit tight.
0:40:56 > 0:40:59I certainly wouldn't have ruled out the rental option.
0:40:59 > 0:41:01Find out if they change their plans
0:41:01 > 0:41:03and how they get on later in the show.
0:41:06 > 0:41:10Hmm. The plans and dreams seemed promising at the time.
0:41:10 > 0:41:12But have those dreams come true?
0:41:12 > 0:41:14Time to go back and find out.
0:41:16 > 0:41:18If being close to a main-line station
0:41:18 > 0:41:21and having local shops on your doorstep are your criteria,
0:41:21 > 0:41:24then this property in Gillingham in Kent would have fitted the bill.
0:41:24 > 0:41:27Although it did not boast the most elegant of exteriors,
0:41:27 > 0:41:31this former office held a few surprises inside,
0:41:31 > 0:41:34with quite extensive work to convert it
0:41:34 > 0:41:37into two two-bedroom self-contained flats,
0:41:37 > 0:41:38already underway.
0:41:40 > 0:41:43But with planning permission for the conversion now lapsed,
0:41:43 > 0:41:46no available parking and little outside space,
0:41:46 > 0:41:49it did come with a few potential pitfalls.
0:41:50 > 0:41:52Despite only viewing it from the outside,
0:41:52 > 0:41:54Kent-based property developer Sean
0:41:54 > 0:41:57thought it was worth taking a chance,
0:41:57 > 0:42:00so he bought it at auction as his second renovation project
0:42:00 > 0:42:02for £98,000.
0:42:02 > 0:42:05Third and final time at £98,000.
0:42:05 > 0:42:08Currently, as it stands, is this one dwelling
0:42:08 > 0:42:11or is it two flats?
0:42:11 > 0:42:12As it stands,
0:42:12 > 0:42:16the work has already begun to turn it into two flats,
0:42:16 > 0:42:18and it's quite advanced,
0:42:18 > 0:42:22so it is essentially two self-contained flats.
0:42:22 > 0:42:26But have you now got to go back to the council and reapply for that permission
0:42:26 > 0:42:28because it has lapsed?
0:42:28 > 0:42:30From the information they've given me so far,
0:42:30 > 0:42:32as it stands,
0:42:32 > 0:42:35if it's just a case of finishing off
0:42:35 > 0:42:39the work that needs to be done so that it becomes two self-contained flats...
0:42:41 > 0:42:43# Come back and finish what you started
0:42:44 > 0:42:46# And don't you leave me hanging on... #
0:42:46 > 0:42:50So provided Sean did get the thumbs-up from the local council,
0:42:50 > 0:42:52the plan was to finish what had been started
0:42:52 > 0:42:55and end up with two self-contained flats.
0:42:55 > 0:42:58He hoped that with a team of builders,
0:42:58 > 0:42:59a 35-grand budget
0:42:59 > 0:43:01and three to four months' work,
0:43:01 > 0:43:04he could complete the flats, ready for the rental market.
0:43:07 > 0:43:09Now, seven months later,
0:43:09 > 0:43:11we're back to see how he's got on.
0:43:14 > 0:43:17Outside certainly looks more appealing,
0:43:17 > 0:43:19with new rendering and paintwork.
0:43:23 > 0:43:26And inside we're met with two doors.
0:43:26 > 0:43:27What's behind them?
0:43:29 > 0:43:32What we've got on offer here is two three-bedroom flats.
0:43:34 > 0:43:36Yes, two three-bedroom flats
0:43:36 > 0:43:40with the downstairs flat's three bedrooms on the ground floor.
0:43:40 > 0:43:41One decent double...
0:43:47 > 0:43:49..and one large en suite
0:43:49 > 0:43:51which still has some work to do on it.
0:43:51 > 0:43:54Sean's decided to change what was intended to be a study
0:43:54 > 0:43:57into a third bedroom.
0:43:59 > 0:44:02But the big surprise in this flat is off the front reception room,
0:44:02 > 0:44:06where there are now stairs leading down to the basement.
0:44:08 > 0:44:12# Oh, now tell me where can you party, child, all night long?
0:44:12 > 0:44:16# In the basement Down in the basement, yeah... #
0:44:16 > 0:44:20Wow! I couldn't even get down here when I visited.
0:44:20 > 0:44:21# In the basement
0:44:21 > 0:44:23# Down in the basement... #
0:44:23 > 0:44:26And just look at all this space.
0:44:26 > 0:44:28# You can jam and still be safe
0:44:28 > 0:44:29# In the basement
0:44:29 > 0:44:31# Down in the basement, yeah... #
0:44:31 > 0:44:35The basement was originally just a storage area.
0:44:35 > 0:44:38What we've done is we've got a bathroom now,
0:44:38 > 0:44:40a utility room, kitchen area,
0:44:40 > 0:44:42nice white bevelled brick tiles, woodwork tops.
0:44:42 > 0:44:45So we're really pleased with what we've achieved here.
0:44:48 > 0:44:52Yes, I think this basement area is great.
0:44:53 > 0:44:55There are still a few bits and pieces to finish off,
0:44:55 > 0:44:57but Sean has already put the flat up for rent
0:44:57 > 0:45:01in anticipation of completing it in the next few weeks.
0:45:04 > 0:45:06How's the second, upstairs, flat progressing?
0:45:10 > 0:45:12Well, it's looking pretty good,
0:45:12 > 0:45:14with a large and bright reception room...
0:45:19 > 0:45:21..two bedrooms...
0:45:25 > 0:45:27..a kitchen and bathroom on the first floor...
0:45:30 > 0:45:34..and then there's a fabulous large double bedroom on the top floor.
0:45:34 > 0:45:37Apart from the extended timescale,
0:45:37 > 0:45:39it all seems to have gone to plan.
0:45:39 > 0:45:42The planning permission was still existent.
0:45:42 > 0:45:46The works did need to have been commenced within three years
0:45:46 > 0:45:48of when the approval was granted.
0:45:48 > 0:45:51And the works had actually started,
0:45:51 > 0:45:54so I didn't need to reapply for fresh planning permission
0:45:54 > 0:45:56for conversion into two flats.
0:45:56 > 0:45:59It wasn't all plain sailing, though.
0:45:59 > 0:46:01Some of the work that had been started
0:46:01 > 0:46:04had to be changed, as it didn't meet current building regulations.
0:46:04 > 0:46:07This meant re-insulating the loft
0:46:07 > 0:46:11and it also turned out the basement wasn't adequately damp-proofed,
0:46:11 > 0:46:13so boarding and insulation had to be removed,
0:46:13 > 0:46:15then reinstated once it was damp-proofed.
0:46:15 > 0:46:19All this delayed the project by three or four months.
0:46:19 > 0:46:22But did Sean keep to his proposed 35-grand budget?
0:46:24 > 0:46:26I spent £48,000
0:46:26 > 0:46:27on this project,
0:46:27 > 0:46:30so I have gone over budget on it,
0:46:30 > 0:46:34and I've also tried to get the work done to a good standard throughout.
0:46:36 > 0:46:40£48,000 on top of a purchase price of £98,000
0:46:40 > 0:46:44will take Sean's total outlay, without costs and fees,
0:46:44 > 0:46:46to £146,000.
0:46:46 > 0:46:48So has this gamble paid off for him?
0:46:48 > 0:46:51What do two local estate agents reckon?
0:46:55 > 0:46:59Having looked around the flat today, I think the changes
0:46:59 > 0:47:00are quite startling, really.
0:47:00 > 0:47:03It was in a very bad state
0:47:03 > 0:47:06and now it's been done to a very high standard.
0:47:06 > 0:47:09The owner's done a cracking job. There's still bits to finish,
0:47:09 > 0:47:11but the standard of the work is very good.
0:47:14 > 0:47:16Sean is looking to let both flats out.
0:47:16 > 0:47:18But having invested £146,000
0:47:18 > 0:47:20to complete the two flats,
0:47:20 > 0:47:23could he see a return for his investment if he sold them?
0:47:26 > 0:47:28Each flat would resell
0:47:28 > 0:47:31for around £95,000 to £100,000.
0:47:31 > 0:47:35The ground-floor flat would sell for between £85,000 and £90,000.
0:47:35 > 0:47:37And the top-floor flat,
0:47:37 > 0:47:40we'd be marketing at £85,000 to sell it for £80,000.
0:47:40 > 0:47:42Those are quite pleasing results.
0:47:42 > 0:47:46I would have made a reasonable amount of profit there.
0:47:48 > 0:47:51Yes, potential pre-tax profit between £19,000 and £54,000,
0:47:51 > 0:47:53if he sold both flats.
0:47:53 > 0:47:57But at present, it's the rental market he's more interested in.
0:47:59 > 0:48:03The top-floor flat would rent for £695 per calendar month,
0:48:03 > 0:48:06and the ground-floor for £725 per calendar month.
0:48:06 > 0:48:10I think each flat would rent for a figure
0:48:10 > 0:48:13of between £600 and £650 per calendar month.
0:48:13 > 0:48:16I think those figures are slightly low,
0:48:16 > 0:48:21just from the point of view that I'm already marketing the flats at £800.
0:48:21 > 0:48:25And I might well come down to about £750.
0:48:26 > 0:48:31Even a monthly rental of £750 per calendar month for each flat
0:48:31 > 0:48:35would mean a potential annual yield above 12%.
0:48:35 > 0:48:38So it may have been a bit of a gamble, not seeing inside,
0:48:38 > 0:48:40but it sure paid off for Sean.
0:48:40 > 0:48:42Will he take that chance again?
0:48:46 > 0:48:50I would consider buying a property without looking inside again...
0:48:50 > 0:48:53for the correct price, sure.
0:48:53 > 0:48:56It'd be a calculated risk, just like this one.
0:48:59 > 0:49:03It was in the Cotmanhay area of Ilkeston in Derbyshire
0:49:03 > 0:49:06that we first came across a lot rather lacking in kerb appeal.
0:49:06 > 0:49:11Surrounded by high fences, this former family support centre
0:49:11 > 0:49:14was in fact two semi-detached houses,
0:49:14 > 0:49:17linked into one by an archway on the ground floor.
0:49:19 > 0:49:23Despite being last used as an office space,
0:49:23 > 0:49:25it still had two kitchens,
0:49:25 > 0:49:26two bathrooms
0:49:26 > 0:49:30and was structurally laid out as two three-bedroom houses.
0:49:30 > 0:49:36So it wasn't hard to see that, provided planning permission was granted, turning it back
0:49:36 > 0:49:39to two properties wasn't going to be too problematic.
0:49:39 > 0:49:41# All right, and it's coming on
0:49:41 > 0:49:45# We've got to get right back to where we started from... #
0:49:45 > 0:49:48Undoubtedly, the biggest challenge was digging up the car park at the rear
0:49:48 > 0:49:51and restoring it to a garden of some kind.
0:49:51 > 0:49:54However, with the prospect of two houses in one lot,
0:49:54 > 0:49:57there was the potential to double the return.
0:49:57 > 0:50:00That's what Nottingham-based couple Dave and Zoe thought,
0:50:00 > 0:50:03having bought the lot at auction for £93,000
0:50:03 > 0:50:06as their second development project.
0:50:06 > 0:50:08When did you see the property?
0:50:08 > 0:50:10- When we got the keys!- No!
0:50:10 > 0:50:14Yeah. It was my 30th birthday party the day of the viewing.
0:50:14 > 0:50:16We did send somebody and they took photos,
0:50:16 > 0:50:20so we'd seen it on photos but not actually seen inside the property.
0:50:20 > 0:50:23- So you were too busy partying?- Yeah!
0:50:23 > 0:50:25Did it turn out to be a good birthday present?
0:50:25 > 0:50:28Yeah. Yeah, we was quite pleasantly surprised
0:50:28 > 0:50:30when we walked in last Thursday.
0:50:32 > 0:50:35Well, not quite a textbook approach to viewing an auction lot,
0:50:35 > 0:50:37but some birthday present!
0:50:37 > 0:50:40And with Zoe just qualified as a social worker
0:50:40 > 0:50:43and partner Dave owning a car-dismantling firm,
0:50:43 > 0:50:46they planned to contract out the conversion work.
0:50:46 > 0:50:48They hoped to turn the one office
0:50:48 > 0:50:53into two homes within six months, on a budget of £12,000 per property.
0:50:55 > 0:50:57Now, nearly six months later, we're back to see
0:50:57 > 0:51:00if they've got their house party started.
0:51:01 > 0:51:04# I'm coming up
0:51:04 > 0:51:07# So you better get this party started
0:51:09 > 0:51:11# I'm coming up
0:51:11 > 0:51:14# So you better get this party started... #
0:51:14 > 0:51:16Well, it does seem as though they have turned
0:51:16 > 0:51:19this single office into two houses successfully.
0:51:24 > 0:51:27How long did it take to get the ball rolling?
0:51:27 > 0:51:29Forever. It took four months.
0:51:29 > 0:51:33There was an issue with the Highways Agency.
0:51:33 > 0:51:35Because we're on a corner,
0:51:35 > 0:51:39they were worried about the height of the fence we were putting up
0:51:39 > 0:51:41to block people's view as they were coming round the corner, so...
0:51:41 > 0:51:45we had to put more plans in and pictures.
0:51:46 > 0:51:49So once they eventually got the green light from the planners
0:51:49 > 0:51:52and blocked up the passageway between the two houses,
0:51:52 > 0:51:55it was just a case of making them into homes again.
0:51:59 > 0:52:01It certainly seems like they've done that
0:52:01 > 0:52:04in the left-hand property, with a fully-fitted kitchen,
0:52:04 > 0:52:06complete with all mod cons.
0:52:08 > 0:52:10There's a bright, welcoming lounge,
0:52:10 > 0:52:14which now has patio doors out to the raised deck area.
0:52:15 > 0:52:19While upstairs, the former office spaces have been transformed
0:52:19 > 0:52:21into three refurbished bedrooms.
0:52:30 > 0:52:31The formerly tired bathroom area
0:52:31 > 0:52:34is now a modern family bathroom.
0:52:36 > 0:52:38So, property number one is looking great.
0:52:38 > 0:52:40What about next door?
0:52:42 > 0:52:45Obviously, they're very similar. Both have the same layout.
0:52:45 > 0:52:47We just went for different wallpapers.
0:52:47 > 0:52:50Both similar colours that we've used,
0:52:50 > 0:52:54just different sort of patterns on the curtains and the wallpaper,
0:52:54 > 0:52:55just to make them a bit different.
0:52:55 > 0:52:59You wouldn't want to be living next door to somebody that's got the exact same house as you!
0:53:01 > 0:53:03With carpets still to go down
0:53:03 > 0:53:06and a few snagging issues to be sorted,
0:53:06 > 0:53:08property number two - the right-hand semi -
0:53:08 > 0:53:11is a little behind its neighbour.
0:53:12 > 0:53:15But it's nearly there, and with a smart new kitchen...
0:53:19 > 0:53:21..those three bedrooms...
0:53:22 > 0:53:24..and, again, a modern bathroom,
0:53:24 > 0:53:27it's all looking pretty good inside the properties.
0:53:28 > 0:53:31But perhaps the biggest challenge was changing the car park
0:53:31 > 0:53:32into two gardens.
0:53:32 > 0:53:36Because the doors are a lot higher than the level of the garden,
0:53:36 > 0:53:38they had big horrible concrete steps
0:53:38 > 0:53:40down to the Tarmac.
0:53:40 > 0:53:44So we decided that really we'd have to put something up high,
0:53:44 > 0:53:46so you could come out onto the decking.
0:53:46 > 0:53:49Plus, there's quite a nice view out the back,
0:53:49 > 0:53:52so, because the decking's quite high, you can sit and enjoy the view.
0:53:53 > 0:53:57So the garden turned into a bigger task than expected.
0:53:57 > 0:53:59Despite this, they're still on track
0:53:59 > 0:54:02to complete the work in a six-month timeframe.
0:54:02 > 0:54:05But did they also manage to stick to
0:54:05 > 0:54:07their budget of £12,000 per property?
0:54:07 > 0:54:10We ended up at 18, in the end.
0:54:10 > 0:54:11A lot of it was on the garden,
0:54:11 > 0:54:15just the sheer amount of getting rid of all the Tarmac and stuff,
0:54:15 > 0:54:18that we underestimated.
0:54:18 > 0:54:20And just making the properties to a higher finish
0:54:20 > 0:54:23so they stand out a bit more on the market, to sell them quicker.
0:54:25 > 0:54:28So an outlay of £18,000 per property
0:54:28 > 0:54:31takes their total costs to £36,000.
0:54:31 > 0:54:34Having bought the lot for £93,000,
0:54:34 > 0:54:37their total spend without costs and fees
0:54:37 > 0:54:39is £129,000.
0:54:39 > 0:54:41What do two local estate agents
0:54:41 > 0:54:45think of their two-for-one refurbishment?
0:54:45 > 0:54:48I think the renovation that's been done on these properties
0:54:48 > 0:54:50is just right for the type of properties they are
0:54:50 > 0:54:51and the market they'll be in.
0:54:51 > 0:54:54I think what's surprised me about the refurbishment particularly
0:54:54 > 0:54:57is how much space has been found outside.
0:54:57 > 0:55:01There's now a big driveway area for off-street parking.
0:55:01 > 0:55:03There's a large garden at the back
0:55:03 > 0:55:06and now it's been landscaped, it looks really spacious.
0:55:06 > 0:55:08My overall impression of the properties is good.
0:55:08 > 0:55:10The one next door, that is finished to a very good standard,
0:55:10 > 0:55:13and, more importantly, the customers that it's aimed at
0:55:13 > 0:55:17will be very impressed with the level of refurbishment that's been done.
0:55:19 > 0:55:22Yes, they've certainly made them into two lovely homes,
0:55:22 > 0:55:23and are hoping to sell them on.
0:55:23 > 0:55:26But if they couldn't sell them quickly,
0:55:26 > 0:55:28how would they fare as rentals?
0:55:30 > 0:55:32These properties would let overnight
0:55:32 > 0:55:35at a rental figure of around £500 per calendar month.
0:55:35 > 0:55:37If I was going to rent these properties out,
0:55:37 > 0:55:41I would expect to achieve around £500 per calendar month for each property.
0:55:41 > 0:55:44They're good amounts. We'd be happy at that.
0:55:44 > 0:55:46But obviously, our priority is to sell them first.
0:55:49 > 0:55:51£500 per calendar month for each house
0:55:51 > 0:55:54would generate an annual rental yield of over 9%.
0:55:54 > 0:55:57But Zoe and Dave are keen to sell them
0:55:57 > 0:56:01and get a return on their £129,000 investment.
0:56:04 > 0:56:06My opinion is that the open-market value of each property
0:56:06 > 0:56:08is now around £85,000.
0:56:08 > 0:56:11If I was putting the properties on the market today,
0:56:11 > 0:56:14I would expect to achieve £80,000 for each property.
0:56:14 > 0:56:17I'm really pleased about that. That's what we estimated.
0:56:17 > 0:56:24We've had them valued and we're putting this one on the market this week at £84,950.
0:56:24 > 0:56:26And the other one will go on the week after.
0:56:26 > 0:56:28In fact, since filming,
0:56:28 > 0:56:32they've had an offer on the finished house of £83,000.
0:56:32 > 0:56:35So if they manage to achieve that figure on both houses,
0:56:35 > 0:56:38that could mean a potential pre-tax profit
0:56:38 > 0:56:40of £37,000.
0:56:40 > 0:56:42So, what's next?
0:56:45 > 0:56:47We've already bought our next property,
0:56:47 > 0:56:50so as soon as we've finished next door, it'll be straight on to that one.
0:56:53 > 0:56:55Well, that's it for now. We'll be back next time
0:56:55 > 0:56:58with more dispatches from the front line of property developing.
0:56:58 > 0:57:02- We'll look forward to seeing you then.- Goodbye for now.- Goodbye.
0:57:09 > 0:57:11Subtitles by Red Bee Media Ltd