0:00:02 > 0:00:05Hello. Browsing through the auction catalogues can be very tempting.
0:00:05 > 0:00:07Mmm. But it's quite another matter
0:00:07 > 0:00:10getting down to the auction room and actually raising your hand
0:00:10 > 0:00:13- to buy something.- Yes, you need courage and conviction,
0:00:13 > 0:00:15buying your home under the hammer.
0:00:41 > 0:00:44Derelict, decaying...but delightful.
0:00:44 > 0:00:47You can find all sorts of properties at the auctions.
0:00:47 > 0:00:50So let's see what our buyers went for on today's show.
0:00:52 > 0:00:56In Staffordshire, there's a cottage that may lack in some areas,
0:00:56 > 0:00:58but makes up for it in others.
0:00:58 > 0:00:59It's got character.
0:01:01 > 0:01:03In Northolt, Middlesex,
0:01:03 > 0:01:05I find a tasty bit of land.
0:01:05 > 0:01:09Worst case scenario - you could pick all these little beauties
0:01:09 > 0:01:11and make a nice blackberry pie.
0:01:13 > 0:01:15And I have high hopes for this 1920s property
0:01:15 > 0:01:17in Marske-by-the-Sea, North Yorkshire.
0:01:17 > 0:01:20Apart from the hike, got to be worth a look.
0:01:23 > 0:01:26All of these properties have been sold at auctions
0:01:26 > 0:01:28and we'll find put who bought them and what they paid for them
0:01:28 > 0:01:30when they went under the hammer.
0:01:30 > 0:01:31Your lot, sir. Well done.
0:01:35 > 0:01:37I'm in the Staffordshire countryside
0:01:37 > 0:01:39in the small village of Newchapel,
0:01:39 > 0:01:41not far from the city of Stoke-on-Trent.
0:01:41 > 0:01:44So it could be ideal for commuters.
0:01:46 > 0:01:47Well, the property I'm here to see
0:01:47 > 0:01:51is right on the main road that goes through the village,
0:01:51 > 0:01:53and it is quite busy, as you can see.
0:01:53 > 0:01:57But the good news is it does at least have off-street parking.
0:01:57 > 0:01:59And this is it. It's a two-bedroom cottage
0:01:59 > 0:02:02at a guide price of £39,000.
0:02:02 > 0:02:04What's it like inside? Only one way to find out.
0:02:07 > 0:02:09Tiled floor.
0:02:09 > 0:02:11That's kind of unusual,
0:02:11 > 0:02:13but a half-decent-sized lounge.
0:02:13 > 0:02:14Er...
0:02:14 > 0:02:17Talking about half-decent, half-timbered, which is interesting.
0:02:17 > 0:02:18You might want to change that.
0:02:18 > 0:02:20But lots of noise coming from the road,
0:02:20 > 0:02:22so the double glazing doesn't seem to be working.
0:02:22 > 0:02:27Maybe investigate something else that you could possibly try and drown out the sound of the traffic.
0:02:27 > 0:02:29But through into the rear of the property...
0:02:29 > 0:02:33It's a fairly classic two-up, two-down terrace layout.
0:02:33 > 0:02:34Rear kitchen area...
0:02:34 > 0:02:37Well, it's got a sink in it - that's about it!
0:02:37 > 0:02:39Obviously needs new units and stuff,
0:02:39 > 0:02:40but it's not a bad size.
0:02:40 > 0:02:42Stairs up to your bedrooms,
0:02:42 > 0:02:44and then...well, a bit of a downside.
0:02:44 > 0:02:47That is the only loo and bathroom in the property -
0:02:47 > 0:02:48it's out the back, it's downstairs
0:02:48 > 0:02:50and it is in need of complete refurbishment.
0:02:50 > 0:02:52So, um, what could you say so far?
0:02:52 > 0:02:54It's got character.
0:02:54 > 0:02:57- # Cos you've got - Personality
0:02:57 > 0:02:59- # Walk - Personality
0:02:59 > 0:03:01- # Talk - Personality
0:03:01 > 0:03:03- # Smile - Personality
0:03:03 > 0:03:05- # Talk - Personality
0:03:05 > 0:03:07- # Love - Personality
0:03:07 > 0:03:10# Cos you've got a great... #
0:03:10 > 0:03:14This place does have a rather eccentric personality,
0:03:14 > 0:03:16especially upstairs,
0:03:16 > 0:03:18where the layout's really impractical.
0:03:18 > 0:03:20You have to walk through one bedroom to get to the other.
0:03:20 > 0:03:24These rooms really just have to be given their own doors off the landing.
0:03:24 > 0:03:27That will make the staircase dark,
0:03:27 > 0:03:30but it's a small price to pay for the better configuration.
0:03:30 > 0:03:33Mind you, you can bypass the stairs altogether,
0:03:33 > 0:03:37as there's a mobility lift that goes from the main bedroom
0:03:37 > 0:03:38to the ground floor.
0:03:38 > 0:03:41Just another thing that needs to be sorted.
0:03:41 > 0:03:43So a bit of work to be done inside.
0:03:43 > 0:03:47Maybe outside will raise my hopes about the potential here.
0:03:47 > 0:03:50Well, at the rear of the property, this little lean-to thing,
0:03:50 > 0:03:53which adds a bit of extra space,
0:03:53 > 0:03:56but I'm not too sure how well-constructed it is.
0:03:56 > 0:03:59You could possibly think about something a bit more substantial
0:03:59 > 0:04:01and increasing the size of the loo at the same time.
0:04:01 > 0:04:04But there is a slight issue at the back here, and that's access,
0:04:04 > 0:04:08because basically you've got this shared walkway to the rear of the property,
0:04:08 > 0:04:11which goes behind the adjoining properties as well.
0:04:11 > 0:04:14In fact, to get to the road, you have to go up there and out through an alleyway.
0:04:14 > 0:04:18Now, that is something a solicitor would have to check out, for sure.
0:04:18 > 0:04:21But practically, when it comes to doing work at the rear of the property,
0:04:21 > 0:04:26all the building materials have got to come through there, so that's definitely a consideration.
0:04:26 > 0:04:29My first job would be to get on good terms with the neighbours.
0:04:29 > 0:04:32You'll need to, because no doubt you'll have to ferry rubble
0:04:32 > 0:04:33along this pathway.
0:04:33 > 0:04:36# Walk on by
0:04:38 > 0:04:41# Walk on by... #
0:04:41 > 0:04:44Even though there is a substantially sized garden,
0:04:44 > 0:04:46given the walkway situation,
0:04:46 > 0:04:49it doesn't look like any kind of extension could be added.
0:04:49 > 0:04:51The layout's quirky inside
0:04:51 > 0:04:54and the outside might put off some buyers.
0:04:54 > 0:04:58On the plus side, there is that guide price of £39,000.
0:05:00 > 0:05:02So there may be possibilities
0:05:02 > 0:05:05for this rather unconventional two-bed terrace.
0:05:05 > 0:05:08We asked along a local estate agent for his thoughts.
0:05:10 > 0:05:12I think the property represents a great opportunity.
0:05:12 > 0:05:15It just needs a little updating - general cosmetic improvements,
0:05:15 > 0:05:17installation of a new electrical system,
0:05:17 > 0:05:19along with a new gas central heating system.
0:05:19 > 0:05:22The upstairs layout needs to be changed
0:05:22 > 0:05:24to achieve a really good return on this property.
0:05:24 > 0:05:27That brings me nicely on to the subject of money.
0:05:27 > 0:05:30If this property was to be renovated to a reasonable standard,
0:05:30 > 0:05:33I would expect it to achieve somewhere in the region of
0:05:33 > 0:05:35£75,000 to £80,000.
0:05:35 > 0:05:38And the rental returns?
0:05:38 > 0:05:40I would be able to rent this property out
0:05:40 > 0:05:42for somewhere in the region of £400 per calendar month.
0:05:42 > 0:05:45Well, I like this little cottage.
0:05:45 > 0:05:49Yes, it could certainly benefit from some internal reconfiguration,
0:05:49 > 0:05:52but not too much of a challenge. And at that kind of guide price,
0:05:52 > 0:05:53yeah, good one to go for.
0:05:53 > 0:05:56Let's see who agreed when it went under the hammer.
0:06:00 > 0:06:0135 to start me?
0:06:03 > 0:06:0430, then.
0:06:04 > 0:06:0730 bid. Thank you. At £30,000.
0:06:07 > 0:06:09£30,000.
0:06:09 > 0:06:1131 in the middle.
0:06:11 > 0:06:14At £31,000. 32? 32.
0:06:14 > 0:06:1533.
0:06:16 > 0:06:1834.
0:06:18 > 0:06:1935.
0:06:19 > 0:06:2036.
0:06:20 > 0:06:2237.
0:06:22 > 0:06:2338.
0:06:25 > 0:06:2639.
0:06:27 > 0:06:28Do you want to go 500?
0:06:28 > 0:06:30New bid of £39,500.
0:06:30 > 0:06:3140.
0:06:31 > 0:06:33£40,500.
0:06:33 > 0:06:3541.
0:06:35 > 0:06:3641.
0:06:36 > 0:06:37£41,500.
0:06:37 > 0:06:3942? 42.
0:06:39 > 0:06:41Shaking his head. Still with you, sir.
0:06:41 > 0:06:44£42,000. Standing in the middle.
0:06:44 > 0:06:47New bidder. £42,500.
0:06:48 > 0:06:4943, sir?
0:06:49 > 0:06:5043.
0:06:50 > 0:06:52£43,500.
0:06:53 > 0:06:5444.
0:06:54 > 0:06:56Shaking your head.
0:06:56 > 0:06:5844. Still with you, sir. Are we all done now?
0:06:59 > 0:07:02£44,000, then, for the first time...
0:07:02 > 0:07:04Back in. £44,500.
0:07:04 > 0:07:0545.
0:07:05 > 0:07:06And a half.
0:07:06 > 0:07:08£45,500.
0:07:08 > 0:07:0946.
0:07:09 > 0:07:10Sure?
0:07:10 > 0:07:1246, then, in the middle. All done now?
0:07:14 > 0:07:15Third and fin...
0:07:15 > 0:07:17New bidder. £46,500.
0:07:17 > 0:07:19Do you want to go 47?
0:07:19 > 0:07:20You do. 47.
0:07:20 > 0:07:22And a half? No.
0:07:22 > 0:07:24It's still with you, sir.
0:07:24 > 0:07:26£47,000, then. I'm not going to linger.
0:07:26 > 0:07:28£47,000 for the first time...
0:07:28 > 0:07:31£47,000 for the second time...
0:07:31 > 0:07:35Third and final time, then, at £47,000...
0:07:35 > 0:07:37You bought it, sir. Well done.
0:07:37 > 0:07:41Those successful buyers who bought this lot for £47,000
0:07:41 > 0:07:43were Harry and Susan.
0:07:44 > 0:07:47The couple are no strangers to the show.
0:07:47 > 0:07:49They originally appeared in 2009,
0:07:49 > 0:07:52when they bought and successfully renovated
0:07:52 > 0:07:54a property in Brown Lees, Staffordshire.
0:07:56 > 0:07:59Harry's the director of a company which provides portable air conditioning equipment
0:07:59 > 0:08:04and, along with Susan, he planned to breathe some life back into this cottage.
0:08:04 > 0:08:06I met them there to find out more.
0:08:06 > 0:08:09Harry, Susan, good to see you - again!
0:08:09 > 0:08:10Yes!
0:08:10 > 0:08:12It's been a while since we last met.
0:08:12 > 0:08:14Quite a few years.
0:08:14 > 0:08:17The place you bought then is not too far from here, if I remember rightly?
0:08:17 > 0:08:19- About four or five kilometres. - Right.
0:08:19 > 0:08:21And how did that go in the end for you?
0:08:21 > 0:08:23It went very well.
0:08:23 > 0:08:26Yeah, we got some tenants in there without any trouble.
0:08:26 > 0:08:29So remind me how you first got into property developing.
0:08:29 > 0:08:31- You had a bit of a lucky break, didn't you?- Well, yes.
0:08:31 > 0:08:36I suppose you could call it that. I didn't think it was that at the time, but we couldn't sell our house.
0:08:36 > 0:08:38The house we live in, that is.
0:08:38 > 0:08:41And the guy who wanted to buy it hadn't got enough money,
0:08:41 > 0:08:43but he did have some garages.
0:08:43 > 0:08:45So we had those in part exchange,
0:08:45 > 0:08:47and then he told me he had planning permission on the land.
0:08:47 > 0:08:51- Ha!- So we built two semis.
0:08:51 > 0:08:55Sold one of them, which paid for the building of the second one,
0:08:55 > 0:08:58and we've kept that ever since. That was the start of the...
0:08:58 > 0:09:01the renting business, so to speak.
0:09:02 > 0:09:05# Come on and be my little
0:09:05 > 0:09:06# Good luck charm
0:09:06 > 0:09:08# Aha-ha... #
0:09:10 > 0:09:12After that lucky break,
0:09:12 > 0:09:15the couple continued to build a portfolio of nine properties.
0:09:15 > 0:09:18They've been involved in properties for over 20 years,
0:09:18 > 0:09:20and it's not just about the numbers for them -
0:09:20 > 0:09:22they seek out properties with personalities.
0:09:23 > 0:09:25Why this property, then?
0:09:25 > 0:09:26Well, Harry saw it.
0:09:26 > 0:09:30We said if we did another one, we would like to do a cottage again.
0:09:30 > 0:09:34- And the fact that my mother grew up in the village...- Oh, great!
0:09:34 > 0:09:37Yes, it's got quite a few memories as well.
0:09:37 > 0:09:40So, yes, we're really...
0:09:40 > 0:09:43I was pleased when we went ahead and bought it.
0:09:43 > 0:09:45Terrific. So what's the plans for it, then?
0:09:45 > 0:09:48Well, it does need a complete renovation.
0:09:48 > 0:09:51But that's a good thing - you've got a blank canvas to start with.
0:09:51 > 0:09:55So it can be replumbed, replastered, rewired.
0:09:55 > 0:09:57And it's a nice position.
0:09:57 > 0:09:58Parking at the front.
0:09:58 > 0:10:02Nice garden. So I think it'll work out all right.
0:10:02 > 0:10:03It's got the cottagey feel to it.
0:10:03 > 0:10:06Front room stays as the front room.
0:10:06 > 0:10:10This room we stand in now will be the kitchen.
0:10:10 > 0:10:13Alter this window here on my right
0:10:13 > 0:10:15- to a doorway.- Right.
0:10:15 > 0:10:18What about the position of the loo - will that stay downstairs?
0:10:18 > 0:10:19It's staying down here,
0:10:19 > 0:10:22but we're going to get rid of the passageway here,
0:10:22 > 0:10:25cos it's taking up about a square metre, metre and a half,
0:10:25 > 0:10:27and then make the bathroom bigger.
0:10:27 > 0:10:30So how are you going to get over the layout issues upstairs?
0:10:30 > 0:10:34- Cos obviously it's not ideal that you have to walk through one bedroom to get to the other.- No.
0:10:34 > 0:10:37That is an issue, but I don't think it's a big problem.
0:10:37 > 0:10:39Knock one door open and knock another one home.
0:10:39 > 0:10:41Well, not me, but the builder!
0:10:44 > 0:10:47I like the plan of using the corridor space
0:10:47 > 0:10:48for a bigger bathroom.
0:10:48 > 0:10:51Though that would mean access will be through the lean-to.
0:10:51 > 0:10:53But it's still an improvement.
0:10:53 > 0:10:56So along with sorting out the doors upstairs,
0:10:56 > 0:10:59the two main problems seem to have been solved.
0:10:59 > 0:11:01But what about the look of the place?
0:11:01 > 0:11:03Well, that's down to Susan.
0:11:04 > 0:11:06I usually get involved with the decor.
0:11:06 > 0:11:10And at the moment, I think I've got quite a job on with this!
0:11:10 > 0:11:13I want to make it more modern,
0:11:13 > 0:11:15but still have a character with it,
0:11:15 > 0:11:17because I do like the cottagey feel.
0:11:17 > 0:11:19But it needs to be brightened up.
0:11:19 > 0:11:21And Harry, are you hands-on?
0:11:21 > 0:11:23To a small degree.
0:11:23 > 0:11:26- OK!- It takes enough, actually,
0:11:26 > 0:11:28to keep an eye on everyone else.
0:11:29 > 0:11:32I think you can get it done much quicker by using the right people...
0:11:32 > 0:11:35- Right.- ..than trying to do it yourself,
0:11:35 > 0:11:37so I keep an eye on everyone else
0:11:37 > 0:11:39and that's enough for me.
0:11:39 > 0:11:40What's the budget for the work?
0:11:40 > 0:11:42Up to 15K.
0:11:42 > 0:11:4410-15, maybe 20.
0:11:44 > 0:11:46I'd like to think 13,
0:11:46 > 0:11:49because it just rounds it off with the...
0:11:49 > 0:11:51But I think it might go to 15.
0:11:56 > 0:11:59A possible £13,000 budget?
0:11:59 > 0:12:03Well, Harry and Susan are obviously not the superstitious types,
0:12:03 > 0:12:05though I reckon they will need some luck
0:12:05 > 0:12:07to get all that work done for that money.
0:12:07 > 0:12:10They're not gambling on a quick turnaround,
0:12:10 > 0:12:13aiming instead for a fairly relaxed six-month timescale.
0:12:13 > 0:12:15So, with a growing portfolio,
0:12:15 > 0:12:18what is it they look for when buying a property?
0:12:18 > 0:12:20Something that's got a good location.
0:12:20 > 0:12:23Something a little bit oddball,
0:12:23 > 0:12:24a little bit cottagey.
0:12:24 > 0:12:26Why do you go for oddball?
0:12:26 > 0:12:29Because if you rent it or sell it,
0:12:29 > 0:12:32people like something a little bit different.
0:12:32 > 0:12:35- Quirky.- Yeah. And with an older property,
0:12:35 > 0:12:37you can sell it on its...
0:12:38 > 0:12:40It's modern and it's new,
0:12:40 > 0:12:44but you can sell it or rent it on the fact that it's old, it's quirky.
0:12:44 > 0:12:46- It's got lots of character.- Mmm.
0:12:46 > 0:12:48Well, congratulations to both of you.
0:12:48 > 0:12:50Good luck with it and we look forward
0:12:50 > 0:12:52- to seeing how you get on. - Thanks very much.- Thanks.
0:12:54 > 0:12:57Well, Harry and Susan adding another property
0:12:57 > 0:12:58to their portfolio.
0:12:58 > 0:13:00Is this one oddball enough for them?
0:13:00 > 0:13:02How will they get on renovating it?
0:13:02 > 0:13:04You can find out later in the show.
0:13:15 > 0:13:18Your idyllic English country garden setting.
0:13:18 > 0:13:22There's the village green, the post office, the thatched country pub...
0:13:22 > 0:13:24Doesn't get much better than this, does it?
0:13:24 > 0:13:26It's perfect.
0:13:26 > 0:13:27So where am I?
0:13:27 > 0:13:29Well, believe it or not, I'm in Northolt,
0:13:29 > 0:13:31which is the London borough of Ealing
0:13:31 > 0:13:33and it's just west of the capital
0:13:33 > 0:13:35and on the Underground Central Line.
0:13:37 > 0:13:39# The beat goes around and round
0:13:39 > 0:13:43# It's the sound of the under Sound of the underground... #
0:13:46 > 0:13:49So, with good links to the city and a rural vibe,
0:13:49 > 0:13:51you might conclude that the plot of land I'm here to see
0:13:51 > 0:13:54would be unaffordable to most of us.
0:13:54 > 0:13:57But in fact, this suburb is often overlooked.
0:13:57 > 0:14:00Now, the auction catalogue describes this
0:14:00 > 0:14:03as "a rectangular-shaped, overgrown level site
0:14:03 > 0:14:05"with a single garage in situ."
0:14:05 > 0:14:09And here it is, on this corner plot.
0:14:09 > 0:14:12"Overgrown" - yes, I think that is a real understatement, if you ask me!
0:14:12 > 0:14:14All I can see is lots of blackberry bushes
0:14:14 > 0:14:17and a tumbledown old garage dumped in the middle.
0:14:17 > 0:14:20Yes, now, the important guide price -
0:14:20 > 0:14:22£15,000,
0:14:22 > 0:14:24which I think is staggering.
0:14:27 > 0:14:30Yes, you heard me right - £15,000.
0:14:30 > 0:14:32But at only 84 square metres,
0:14:32 > 0:14:34you're going to have to be pretty imaginative
0:14:34 > 0:14:36as to how you develop this plot.
0:14:36 > 0:14:40That is if you CAN actually do anything with it.
0:14:43 > 0:14:48OK, so it's very hard to see what's underneath all these brambles and bushes,
0:14:48 > 0:14:51but as I said, it is level, which is a good start.
0:14:51 > 0:14:52But it's not a large plot,
0:14:52 > 0:14:55and that will determine the size of house
0:14:55 > 0:14:57if you're going to build here.
0:14:57 > 0:14:59In fact, it's very narrow.
0:14:59 > 0:15:02I can't imagine the council allowing somebody to build a house here.
0:15:02 > 0:15:06Perhaps clearing away all these brambles will make a difference,
0:15:06 > 0:15:08but I'm not convinced.
0:15:08 > 0:15:11Worst case scenario - you could pick all these little beauties
0:15:11 > 0:15:13and make a nice blackberry pie.
0:15:13 > 0:15:15Mmm!
0:15:15 > 0:15:18# Goodbye, Blackberry Way
0:15:18 > 0:15:22# Sure to want me back another day... #
0:15:24 > 0:15:26So far, any attempts at developing this site
0:15:26 > 0:15:28have been pie-in-the-sky.
0:15:28 > 0:15:30There's got to be a way forward
0:15:30 > 0:15:32to make something out of this plot of land
0:15:32 > 0:15:35with its £15,000 guide price.
0:15:35 > 0:15:36Surely?
0:15:39 > 0:15:44Now, there are some issues with this plot which might explain that surprisingly low guide price.
0:15:44 > 0:15:46The services are really limited on this site.
0:15:46 > 0:15:50I think there's electricity, but water, gas... Nada.
0:15:50 > 0:15:56Also, there hasn't been any recent applications to redevelop this land.
0:15:56 > 0:15:58Now, that could mean getting permission to build here -
0:15:58 > 0:16:01well, it might be more difficult than you think.
0:16:01 > 0:16:03Planners will also look at the parking issues,
0:16:03 > 0:16:06the access, and whether the proposed building
0:16:06 > 0:16:10will even fit in with the other houses on the street.
0:16:10 > 0:16:12The history of this site isn't encouraging either.
0:16:12 > 0:16:16Plans for flats submitted five years ago, back in 2008,
0:16:16 > 0:16:19failed to get past the planners.
0:16:19 > 0:16:22Even for a £15,000 guide price,
0:16:22 > 0:16:24this site is a prickly problem.
0:16:24 > 0:16:27# I told you I was trouble
0:16:29 > 0:16:32# You know that I'm no good... #
0:16:34 > 0:16:36We asked along a local estate agent
0:16:36 > 0:16:39to see if she could see the wood for the trees on this one.
0:16:40 > 0:16:42There's two particular options here.
0:16:42 > 0:16:46One would be flats, or number two would be a small detached property.
0:16:46 > 0:16:49With reference to flats, because of the parking restrictions,
0:16:49 > 0:16:51I do think that would be a huge problem.
0:16:51 > 0:16:56But you could possibly get a very, very small detached house with off-street parking onto it.
0:16:59 > 0:17:02OK, so if the purchaser does manage to put up a house on the plot,
0:17:02 > 0:17:04what might it fetch if sold on?
0:17:07 > 0:17:11I think a three-bedroom detached property within the local vicinity
0:17:11 > 0:17:14would sell for approximately £250,000.
0:17:16 > 0:17:19What about putting that three-bed house on the rental market?
0:17:21 > 0:17:23If you were looking to rent the property out,
0:17:23 > 0:17:28I think you'd be looking within the region of approximately £1,000 per month to £1,100 per month.
0:17:30 > 0:17:32Just clearing this site would be a start.
0:17:32 > 0:17:36Then, should you want to build, planning is not guaranteed.
0:17:36 > 0:17:40Get the permission, and this could be a really shrewd buy.
0:17:40 > 0:17:42But if it gets turned down,
0:17:42 > 0:17:44you've got an expensive piece of land
0:17:44 > 0:17:46with drastically limited potential.
0:17:46 > 0:17:48So is it worth a punt?
0:17:48 > 0:17:51Well, let's see who thought so at the auction.
0:17:53 > 0:17:54Lot 47.
0:17:54 > 0:17:57Rectangular-shaped parcel of land.
0:17:57 > 0:18:00I don't know... Start at £10,000?
0:18:00 > 0:18:01See where we go from there.
0:18:03 > 0:18:05£10,000. 11.
0:18:06 > 0:18:0811. 12.
0:18:08 > 0:18:0913.
0:18:09 > 0:18:1114.
0:18:11 > 0:18:1215.
0:18:12 > 0:18:1416.
0:18:14 > 0:18:1517.
0:18:15 > 0:18:1618.
0:18:16 > 0:18:1819.
0:18:19 > 0:18:2020.
0:18:20 > 0:18:2221.
0:18:24 > 0:18:26Come to you - 21 now, yeah? You bidding? 21.
0:18:26 > 0:18:2822. 23.
0:18:31 > 0:18:33One bid, couple of bids, and that's it.
0:18:33 > 0:18:35£22,000. 23 anywhere?
0:18:38 > 0:18:40It's going at 22... 23.
0:18:40 > 0:18:4224. 25.
0:18:42 > 0:18:4326.
0:18:43 > 0:18:4427.
0:18:44 > 0:18:4528.
0:18:45 > 0:18:4629.
0:18:46 > 0:18:4830.
0:18:48 > 0:18:4931.
0:18:49 > 0:18:5032.
0:18:50 > 0:18:5133?
0:18:51 > 0:18:5332.
0:18:53 > 0:18:5433?
0:18:54 > 0:18:57Lady in the green, 33, coming in.
0:18:57 > 0:18:59£32,000 down here.
0:18:59 > 0:19:01Anyone else?
0:19:01 > 0:19:03Another thousand - 33?
0:19:03 > 0:19:05If not, £32,000.
0:19:05 > 0:19:07First... 33, back in.
0:19:07 > 0:19:0934.
0:19:09 > 0:19:1035.
0:19:10 > 0:19:1136.
0:19:11 > 0:19:1237?
0:19:13 > 0:19:1536, back to you.
0:19:15 > 0:19:1737 anywhere else?
0:19:17 > 0:19:1936, first time...second time...
0:19:19 > 0:19:22Third and last time, if you're all done.
0:19:23 > 0:19:25Sold, 36. Well done.
0:19:28 > 0:19:32That final bid of £36,000 was placed by Zaki.
0:19:32 > 0:19:35He's spent the last 20 years
0:19:35 > 0:19:39sourcing and managing property development opportunities
0:19:39 > 0:19:40for investors.
0:19:40 > 0:19:44I met him at the plot to find out what he has in mind for it.
0:19:46 > 0:19:48- Zaki, congratulations.- Thank you.
0:19:48 > 0:19:51You got the plot of land. What I want to know is,
0:19:51 > 0:19:52what are you going to do with it?
0:19:52 > 0:19:54It's quite a small plot, isn't it?
0:19:54 > 0:19:58Why I bought this land is because our client has got a house next to it.
0:19:58 > 0:20:00And we can use some of the land from there.
0:20:00 > 0:20:03- Aha! So you've bought it on behalf of your client.- Yeah.
0:20:03 > 0:20:04And they live there?
0:20:04 > 0:20:06They own the house - they don't live there.
0:20:06 > 0:20:10- So you're hoping to take a little bit of their land... - Their land, yes.
0:20:10 > 0:20:11And then do what?
0:20:11 > 0:20:14And build maybe two three-bedroom flats or a house.
0:20:14 > 0:20:16What's your preference - a flat or the houses?
0:20:16 > 0:20:19- We'd prefer a house.- You'd prefer to build a house?
0:20:19 > 0:20:23If not, then my architect will try to negotiate with the council to make a flat.
0:20:23 > 0:20:28- How much land are you going to take from...?- At least, I think, two metres.
0:20:28 > 0:20:29More...
0:20:29 > 0:20:33- So that's the reason you wanted to buy this?- That's the reason.
0:20:33 > 0:20:35We bought this land because of the next-door house.
0:20:35 > 0:20:39- So you wouldn't have bought this plot otherwise?- Otherwise, it's too small.
0:20:42 > 0:20:44Now it's all beginning to make sense.
0:20:44 > 0:20:48Increasing the size of the plot by taking some land from next door
0:20:48 > 0:20:50will be the making of this site.
0:20:50 > 0:20:53Suddenly the idea of a three-bed house
0:20:53 > 0:20:57or even two two-bed flats here doesn't seem so far-fetched.
0:20:57 > 0:21:00But any plans have to be approved by Ealing Council.
0:21:00 > 0:21:03Submitting them will be Zaki's architect, Lowji,
0:21:03 > 0:21:08who's already met with the council to talk about his proposals for the plot.
0:21:11 > 0:21:13Lowji, thank you for coming along today.
0:21:13 > 0:21:16I'm really intrigued to know - what do Ealing Council want?
0:21:16 > 0:21:18How do they see this property?
0:21:18 > 0:21:21Interestingly, when we first went there,
0:21:21 > 0:21:24and said, "We have a plot of land - what can we do?" -
0:21:24 > 0:21:27the answer was, "You can do nothing on this plot."
0:21:27 > 0:21:28So first off, they said no?
0:21:28 > 0:21:30There was nothing could be done on this.
0:21:30 > 0:21:33And then, when they sat down and listened to what we had to say -
0:21:33 > 0:21:39"Look, we are taking a part of this property. We're also looking at possibly the land behind us,
0:21:39 > 0:21:43"and we now want to build a house. We know there's a shortage
0:21:43 > 0:21:46"and pressure on Ealing Council to provide the housing."
0:21:46 > 0:21:49And then they did actually sit down and listen to us.
0:21:49 > 0:21:51And then we left the office more positively.
0:21:51 > 0:21:55So, it's fair to say you do have a challenge on your hands with one, don't you?
0:21:55 > 0:21:57We certainly have a big challenge on this one.
0:21:57 > 0:22:00- Is it something you're very much looking forward to?- We are.
0:22:00 > 0:22:02We think we can actually resolve this challenge.
0:22:02 > 0:22:06In fact, what we're also looking at is trying to make this house
0:22:06 > 0:22:09as part of a closer-to-zero carbon...
0:22:09 > 0:22:11There's no such thing as zero carbon,
0:22:11 > 0:22:13but we're looking to build this house
0:22:13 > 0:22:16as close as we can to zero carbon.
0:22:16 > 0:22:21So it's going to comply well above the minimum building regulations standard.
0:22:21 > 0:22:25Does that cost you more money in the long term, building a house like that?
0:22:25 > 0:22:31It does. It does actually add a cost of about 30% more than a conventional way of building houses.
0:22:31 > 0:22:34But it does pay off in the long run.
0:22:34 > 0:22:36It really does. And I think some clients
0:22:36 > 0:22:41don't actually understand that at the beginning, because they're having to pay out more money.
0:22:41 > 0:22:45- But we have a client who is actually very understanding.- It's also good for the council
0:22:45 > 0:22:47to be seen to be building houses like this.
0:22:47 > 0:22:49It's actually good for the council's PR.
0:22:49 > 0:22:53- And it's good for the environment, of course.- Absolutely.- And that's why we must do this.- Yes.
0:22:54 > 0:22:58All of a sudden, I'm quite excited about the prospects here.
0:22:58 > 0:23:02An eco-friendly, zero-carbon building sounds fantastic.
0:23:02 > 0:23:05So we've got everything crossed for Lowji and Zaki
0:23:05 > 0:23:06getting permission for that.
0:23:06 > 0:23:09Once they do, Zaki will project-manage a team of builders
0:23:09 > 0:23:15as they transform the site, with the finished building being rented out to council tenants.
0:23:19 > 0:23:21How much do you think it'll cost you to build here?
0:23:21 > 0:23:24It's about at least £100,000.
0:23:24 > 0:23:27- £100,000. Is that for the house? - For the house,
0:23:27 > 0:23:29or for the flats, nearly the same price.
0:23:29 > 0:23:32Why do you feel the house is more beneficial than the flats?
0:23:32 > 0:23:34It's more resale value
0:23:34 > 0:23:37and more rental income from the council.
0:23:37 > 0:23:40Zaki, how long will it be before we can see a house here?
0:23:40 > 0:23:42If everything goes OK,
0:23:42 > 0:23:45it's about five months from today.
0:23:45 > 0:23:47Zaki, good luck with this project,
0:23:47 > 0:23:51- and I really hope you get the planning permission. - Thank you very much.
0:23:53 > 0:23:56Zaki and his architect, Lowji, seem very confident
0:23:56 > 0:23:59that they're going to get that all-important planning permission
0:23:59 > 0:24:02to build a three-bedroom house here.
0:24:02 > 0:24:03It's a risky strategy,
0:24:03 > 0:24:06but I for one hope they're successful.
0:24:06 > 0:24:08Join me later in the programme
0:24:08 > 0:24:10to see if it all works out for them.
0:24:12 > 0:24:16Coming up... Does this property in North Yorkshire live up to expectations?
0:24:16 > 0:24:19Are the views as glorious as they say?
0:24:22 > 0:24:24We return to Northolt, Middlesex,
0:24:24 > 0:24:27to see if persistence really does pay off.
0:24:27 > 0:24:31My client wanted to give up. I said, "No, don't give up. Keep trying."
0:24:34 > 0:24:39But first, it's back to Staffordshire to see the results at Harry and Susan's latest purchase.
0:24:39 > 0:24:41We're quite pleased with how it's worked out.
0:24:46 > 0:24:49Earlier, we were in the village of Newchapel, near Stoke-on-Trent,
0:24:49 > 0:24:53where we saw Harry and Susan buy this two-bedroom terraced house
0:24:53 > 0:24:55for £47,000.
0:24:55 > 0:24:58They've already appeared on the show once before,
0:24:58 > 0:25:02when we saw their renovation of this house in Brown Lees, Staffordshire.
0:25:02 > 0:25:05Now they've added this one to their expanding portfolio.
0:25:05 > 0:25:09So what do you look for when you're deciding which properties to buy?
0:25:09 > 0:25:11Something that's got a good location.
0:25:11 > 0:25:14Something a little bit oddball,
0:25:14 > 0:25:15a little bit cottagey.
0:25:15 > 0:25:17Why do you go for oddball?
0:25:17 > 0:25:19Because if you rent it or sell it,
0:25:19 > 0:25:23people like something a little bit different.
0:25:23 > 0:25:24- Quirky.- Yeah.
0:25:24 > 0:25:27Well, there were plenty of quirks here to satisfy Harry.
0:25:27 > 0:25:29There was a tiny bathroom with no bath,
0:25:29 > 0:25:33the front bedroom could only be accessed through the rear bedroom
0:25:33 > 0:25:37and there was a lift for the disabled between the living room and the front bedroom.
0:25:37 > 0:25:39With a budget of around £15,000
0:25:39 > 0:25:41and a six-month timescale,
0:25:41 > 0:25:44would Harry and Susan be able to overcome these quirks
0:25:44 > 0:25:47and make the house just what the rental market wants?
0:25:49 > 0:25:51Well, it's five-and-a-half months later,
0:25:51 > 0:25:55and a splash of paint on the outside gives it a fresher look.
0:25:55 > 0:25:57But is it as fresh inside?
0:26:00 > 0:26:04Susan has certainly kept to her plans of making this a cosy cottage.
0:26:04 > 0:26:07The dated stone-clad fireplace is no more
0:26:07 > 0:26:10and the original fireplace has been rediscovered,
0:26:10 > 0:26:12and the wood-burning-effect stove put in.
0:26:17 > 0:26:21In the kitchen, that solitary sink now has some culinary companions.
0:26:21 > 0:26:23It all feels very homely,
0:26:23 > 0:26:25which must be good news for the tenants,
0:26:25 > 0:26:26who have already moved in.
0:26:26 > 0:26:29At the back of the property, the plans have changed.
0:26:29 > 0:26:32Harry and Susan have not extended the bathroom,
0:26:32 > 0:26:35but it's been refurbished and a new shower installed.
0:26:35 > 0:26:40And it wasn't the only idea of Harry's that hadn't been realised.
0:26:41 > 0:26:44The layout's basically as it was before.
0:26:44 > 0:26:46I couldn't see any reason to change it round.
0:26:46 > 0:26:49We were going to put a door in the alcove here,
0:26:49 > 0:26:50but decided not to,
0:26:50 > 0:26:54because it allows more light in and sort of opens the room up a little bit.
0:26:54 > 0:26:56We took a corner fireplace out
0:26:56 > 0:26:59and that's allowed us to put the wall cupboards in squarely.
0:26:59 > 0:27:02And we actually used the fireplace to vent the cooker.
0:27:02 > 0:27:05So, all in all, we've managed to fit everything in.
0:27:05 > 0:27:08The washing machine has gone into the conservatory outside.
0:27:08 > 0:27:11So it's left quite a bit of space in the kitchen,
0:27:11 > 0:27:14and we're quite pleased with how it's worked out.
0:27:15 > 0:27:18Upstairs, the couple decided that having to go through one bedroom
0:27:18 > 0:27:22to get to the other was a quirk too far,
0:27:22 > 0:27:25and the bedrooms now have their own doors to the hall.
0:27:25 > 0:27:29They've been replastered and are now light and airy.
0:27:32 > 0:27:35In this bedroom, it was quite a big change,
0:27:35 > 0:27:37because we had to move doors around.
0:27:37 > 0:27:39If you recall, there was a lift about here
0:27:39 > 0:27:41that went straight through the floor.
0:27:41 > 0:27:43And this door wasn't here,
0:27:43 > 0:27:48which, in effect, meant you had to come through the other room to get into here,
0:27:48 > 0:27:50so we had to block that doorway up,
0:27:50 > 0:27:52block the floor up, and re-put a door here.
0:27:52 > 0:27:55It's all worked out well. We're quite pleased with it.
0:27:55 > 0:27:59The flow of the rooms up here obviously works a lot better now.
0:27:59 > 0:28:02Removing the lift helped solve those access issues,
0:28:02 > 0:28:05although getting rid of it didn't go smoothly.
0:28:06 > 0:28:08The builders really struggled to get it out.
0:28:08 > 0:28:11How it came in, we'll never know,
0:28:11 > 0:28:14but they ended up cutting it into pieces with a Stihl saw
0:28:14 > 0:28:16to remove it out of the house.
0:28:18 > 0:28:20Well, it doesn't sound like uplifting work,
0:28:20 > 0:28:22but the garden has certainly been lifted.
0:28:22 > 0:28:24A good spruce-up and removing the outhouse
0:28:24 > 0:28:27has opened up the outside space.
0:28:28 > 0:28:31In general, the renovation went smoothly,
0:28:31 > 0:28:33with Harry overseeing the works.
0:28:33 > 0:28:36And while the couple normally choose the decor together
0:28:36 > 0:28:38for their other refurbishments,
0:28:38 > 0:28:39this time they had some help.
0:28:39 > 0:28:41In this case, we'd made a decision
0:28:41 > 0:28:45to keep it modern, but still keep the character.
0:28:45 > 0:28:49But finding two tenants who really wanted the property,
0:28:49 > 0:28:51it sort of took some of it away,
0:28:51 > 0:28:54because we allowed them to make their own choice of colour,
0:28:54 > 0:28:58which was probably similar to what we would have chosen anyway.
0:28:58 > 0:29:01And it appears the couple didn't have to look far for their tenants.
0:29:01 > 0:29:04In fact, they didn't have to search at all.
0:29:04 > 0:29:08A couple saw us doing it and came along and asked
0:29:08 > 0:29:12what we were going to do with it, and we said we were anticipating possibly renting it,
0:29:12 > 0:29:14and they said, "Well, can we have first option?"
0:29:14 > 0:29:19Er...and they're a nice couple, good tenants, so we said yes
0:29:19 > 0:29:21and here they are - moved in.
0:29:21 > 0:29:24With their experience of past renovations,
0:29:24 > 0:29:26they easily turned the house around
0:29:26 > 0:29:28within their timescale of six months,
0:29:28 > 0:29:30ensuring it earned its keep as soon as possible.
0:29:30 > 0:29:34But how did they do with their £10,000 to £15,000 budget?
0:29:34 > 0:29:37On the upper limit.
0:29:37 > 0:29:40About £15,000, £15,500.
0:29:43 > 0:29:46Add that spend to their purchase price of £47,000
0:29:46 > 0:29:49and their total outlay is £62,500.
0:29:49 > 0:29:52Time to find out from two local estate agents
0:29:52 > 0:29:54what they think of this latest addition
0:29:54 > 0:29:58to Harry and Susan's property portfolio.
0:29:58 > 0:30:00The property has been nicely renovated.
0:30:00 > 0:30:03It's a little on the compact size, but it has been very well renovated.
0:30:03 > 0:30:06My initial thoughts are it's been done to a good standard,
0:30:06 > 0:30:08neutral decor. It's got off-road parking,
0:30:08 > 0:30:10which is a bonus, and a good-sized rear garden.
0:30:10 > 0:30:13The downstairs shower room isn't obviously going to be to everybody's taste,
0:30:13 > 0:30:16but what they have done with it is of a good standard.
0:30:16 > 0:30:18One of the main features is the garden.
0:30:18 > 0:30:21A lot of properties of this type don't have garden space. It'll appeal to many buyers.
0:30:21 > 0:30:26The couple plan to let the house for the foreseeable future.
0:30:26 > 0:30:30So are they getting the best rent from their current tenants?
0:30:30 > 0:30:32I would put this property on the rental market
0:30:32 > 0:30:34for £475 per calendar month.
0:30:34 > 0:30:36If this property was put on the rental market,
0:30:36 > 0:30:40I'd expect it to achieve between £400 to £450 per calendar month.
0:30:40 > 0:30:44Those rental returns could give Harry and Susan
0:30:44 > 0:30:47an annual yield of between 8% and 9%.
0:30:47 > 0:30:48That's pretty good.
0:30:48 > 0:30:51I didn't imagine quite that much.
0:30:51 > 0:30:54- So, yeah, I'm pleased.- Yeah.
0:30:54 > 0:30:56So will the...
0:30:56 > 0:30:59the people who are renting it!
0:31:00 > 0:31:02Smiles all round, then, on that one.
0:31:02 > 0:31:05Will the resale value make Harry and Susan smile too?
0:31:05 > 0:31:08The estate agents reckon the house could fetch
0:31:08 > 0:31:11between £85,000 and just under £90,000.
0:31:11 > 0:31:13With their outlay of £62,500,
0:31:13 > 0:31:16those valuations mean the couple could achieve
0:31:16 > 0:31:20a possible pre-tax profit of between £22,500 and £27,500
0:31:20 > 0:31:22before the usual tax and expenses.
0:31:22 > 0:31:26I'm very pleased with that. That covers all our...
0:31:26 > 0:31:28- That's in the region we were thinking.- ..all our costs...
0:31:28 > 0:31:30and renovation.
0:31:31 > 0:31:34But for now, they plan to stick with the rental income
0:31:34 > 0:31:36for this latest addition to their property empire.
0:31:37 > 0:31:40Chances are, though, that Harry and Susan
0:31:40 > 0:31:42are planning to add to their portfolio.
0:31:43 > 0:31:46- A break!- A break... Well, we always say we wouldn't do another one,
0:31:46 > 0:31:49but if the right sort of property comes along,
0:31:49 > 0:31:51you know, we could be tempted, I think.
0:31:51 > 0:31:55Yes. We always say no, but something comes up
0:31:55 > 0:31:57and then we get tempted!
0:32:02 > 0:32:04I'm in North Yorkshire today.
0:32:04 > 0:32:06Marske-by-the-Sea -
0:32:06 > 0:32:08a small - surprise, surprise - coastal town
0:32:08 > 0:32:10just five minutes from Redcar.
0:32:10 > 0:32:14In 1801, Marske consisted of just one lone street
0:32:14 > 0:32:16of whitewashed cottages,
0:32:16 > 0:32:18only one of which survives.
0:32:18 > 0:32:20The town is a little bigger now,
0:32:20 > 0:32:22but still has that peace and tranquillity
0:32:22 > 0:32:24you often find in places by the sea.
0:32:24 > 0:32:28# A quiet place to live... #
0:32:32 > 0:32:34Well, down this little lane is a property
0:32:34 > 0:32:36that, intriguingly, at the auction,
0:32:36 > 0:32:40had its guide price reduced from around £145,000
0:32:40 > 0:32:43to £80,000.
0:32:43 > 0:32:47The auction catalogue describes it as having "glorious views"
0:32:47 > 0:32:50and that's because it is up there.
0:32:50 > 0:32:52Up those steps.
0:32:52 > 0:32:54Still, three-bedroom mid-terrace...
0:32:55 > 0:32:57Apart from the hike, it's got to be worth a look.
0:32:58 > 0:33:03# I'd climb the highest mountain
0:33:05 > 0:33:10# If I knew that when I climbed that mountain
0:33:10 > 0:33:17# I'd find you... #
0:33:17 > 0:33:19It's not just the climb -
0:33:19 > 0:33:22it's how you get to base camp.
0:33:22 > 0:33:24The house was built in the 1920s,
0:33:24 > 0:33:26when fewer people owned cars.
0:33:26 > 0:33:28There's only one small parking space,
0:33:28 > 0:33:31and then there's that tiered garden to look after.
0:33:31 > 0:33:34Clearly, all the steps make this place
0:33:34 > 0:33:37far from ideal for anyone with mobility difficulties
0:33:37 > 0:33:41or just a family. Can you imagine a pushchair and shopping and...whatever?
0:33:41 > 0:33:45Still, are the views as glorious as they say?
0:33:49 > 0:33:50No.
0:33:54 > 0:33:55So...
0:33:55 > 0:33:57What have we got?
0:33:57 > 0:33:59Well, nice little entrance area here.
0:33:59 > 0:34:03You've got the porch there too, which is a nice little bit of extra space
0:34:03 > 0:34:04to put your bags and things down.
0:34:04 > 0:34:07Stairs up to the bedrooms, through to the rear there.
0:34:07 > 0:34:11I'll come straight into here, which is the front sitting room area.
0:34:11 > 0:34:13But before we do that, this is really strange...
0:34:13 > 0:34:17When I looked through there, I saw this rear sitting room area. You've got this one here.
0:34:17 > 0:34:21Between the two, you've got this wraparound stud partition wall.
0:34:21 > 0:34:24Straight away, I'm thinking, "What's that there for?"
0:34:24 > 0:34:28It creates this room here, but you've got this really dark room towards the back.
0:34:28 > 0:34:29So get rid of that stud partition wall.
0:34:29 > 0:34:32And then you'd get light and the sort-of view.
0:34:32 > 0:34:35It would be accessible then from much more of the property.
0:34:35 > 0:34:38But in here, you get a flavour - it is all a bit dated.
0:34:38 > 0:34:41And nowhere more so than on the fire breast.
0:34:41 > 0:34:44Absolutely marvellous!
0:34:44 > 0:34:47Straight out of a 1970s or '80s...
0:34:47 > 0:34:52DIY...trendy-thing-to-do catalogue!
0:34:53 > 0:34:57# Eagerly pursuing All the latest fads and trends
0:34:57 > 0:35:01# Cos he's a dedicated follower of fashion... #
0:35:01 > 0:35:04So, a little cosmetic updating to do.
0:35:04 > 0:35:08But so far, considering the house was built in 1924,
0:35:08 > 0:35:10it's in pretty reasonable condition,
0:35:10 > 0:35:13although the layout leaves a bit to be desired.
0:35:15 > 0:35:17Really rubbish, that. I don't know what they were trying to do -
0:35:17 > 0:35:21I guess just create more rooms. But it's at the expense of...
0:35:21 > 0:35:23I don't know, just logical living space.
0:35:23 > 0:35:25So, yes, yes, yes - take it out, take it out!
0:35:25 > 0:35:28What's actually gone on, though, is at some point,
0:35:28 > 0:35:32an extension has been built - single storey on the back here.
0:35:32 > 0:35:34This is where the kitchen now is.
0:35:34 > 0:35:36I imagine the kitchen used to be out there.
0:35:36 > 0:35:39It's not a bad kitchen - it's in half-decent condition.
0:35:39 > 0:35:42I like the fact you've got a roof light there, which is good.
0:35:42 > 0:35:44It's taken space away from the rear garden,
0:35:44 > 0:35:47so you've now just got this very small space.
0:35:47 > 0:35:49But if you were to rent this place out,
0:35:49 > 0:35:51that wouldn't necessarily be a bad thing.
0:35:51 > 0:35:54I have been rather down on this property -
0:35:54 > 0:35:57its position, its decor and its layout.
0:35:57 > 0:35:58But it isn't all bad.
0:35:58 > 0:36:00As an investment for a rental portfolio,
0:36:00 > 0:36:03it could be good to go almost immediately,
0:36:03 > 0:36:05as it does have a decent kitchen.
0:36:05 > 0:36:08And although that strange second living area
0:36:08 > 0:36:10isn't my cup of tea, it could be useful.
0:36:13 > 0:36:16Upstairs, there are three decent bedrooms in fairly good order.
0:36:19 > 0:36:20Two doubles and a single,
0:36:20 > 0:36:23and again, everything seems to be in good condition.
0:36:23 > 0:36:26It just needs some decoration and modernisation.
0:36:28 > 0:36:30At a push, even the bathroom is OK -
0:36:30 > 0:36:32it's dated, but perfectly usable.
0:36:33 > 0:36:37So, overall, there are more ups with this property than downs.
0:36:39 > 0:36:42What does a local property expert make of this house,
0:36:42 > 0:36:44with its reduced guide price of £80,000
0:36:44 > 0:36:47and especially its location?
0:36:47 > 0:36:49Not ideal for the two-car family,
0:36:49 > 0:36:52probably ruling out the elderly or the very, very young,
0:36:52 > 0:36:54purely because of the steep access to the front door.
0:36:54 > 0:36:57So what about the house itself?
0:36:57 > 0:37:01What work should be done, and should the layout be changed?
0:37:01 > 0:37:03The layout is OK.
0:37:03 > 0:37:06The kitchen is obviously an extension to the original property.
0:37:06 > 0:37:11Because of the build of the house, I would be of the thinking that it would be quite difficult to rejig.
0:37:11 > 0:37:14Once renovated, would it let easily?
0:37:14 > 0:37:18There's a huge demand for rental properties in East Cleveland in general,
0:37:18 > 0:37:20and even more so in Marske-by-the-Sea.
0:37:20 > 0:37:22I would expect a three-bedroom property like this
0:37:22 > 0:37:25to fetch in the region of £550 per calendar month.
0:37:25 > 0:37:28What could this house sell on for?
0:37:28 > 0:37:30If it was improved cosmetically
0:37:30 > 0:37:32and given more of a modern feel,
0:37:32 > 0:37:33I wouldn't be surprised
0:37:33 > 0:37:36to see the property fetch in the region of £110,000.
0:37:38 > 0:37:42Well, the position of this property, up all those steps,
0:37:42 > 0:37:45certainly means it's not ideal for everyone.
0:37:45 > 0:37:47But especially at that lower guide price,
0:37:47 > 0:37:50a reasonable amount of house for the money.
0:37:50 > 0:37:54Let's see who was interested in it when it went under the hammer.
0:37:56 > 0:37:58Lot number 33.
0:37:58 > 0:38:01Situated in a delightful location, just tucked off the beaten track.
0:38:01 > 0:38:04Can I ask for £80,000? How about 76?
0:38:05 > 0:38:08Thank you. Right-hand side, on the wall, at £76,000.
0:38:08 > 0:38:1078 on the telephone.
0:38:10 > 0:38:1378 on the telephone... £80,000?
0:38:13 > 0:38:1480 bid.
0:38:14 > 0:38:1582?
0:38:17 > 0:38:1982 bid. 84?
0:38:19 > 0:38:22I'm with Janet at £82,000.
0:38:22 > 0:38:23£83,000 bid.
0:38:23 > 0:38:25In the room at £83,000.
0:38:25 > 0:38:2684.
0:38:26 > 0:38:28It's against you, Janet.
0:38:28 > 0:38:2984 bid.
0:38:29 > 0:38:3185?
0:38:31 > 0:38:34I'm with Janet at £84,000.
0:38:34 > 0:38:36I'll take 85.
0:38:36 > 0:38:3885 - Sarah's bid on the telephone.
0:38:38 > 0:38:4186. You're out in the room. Janet, you're out.
0:38:41 > 0:38:42It's sir's at 85.
0:38:42 > 0:38:45£85,500 with Janet.
0:38:45 > 0:38:4686.
0:38:46 > 0:38:4886 bid.
0:38:48 > 0:38:50Janet, it's against you now. £86,500.
0:38:52 > 0:38:53£86,500 to Janet.
0:38:54 > 0:38:5587.
0:38:56 > 0:38:5787 bid.
0:38:57 > 0:38:59£87,500?
0:38:59 > 0:39:00No?
0:39:00 > 0:39:01With sir at 87.
0:39:01 > 0:39:05It's your last chance, because I'm selling. It's going once at 87...
0:39:05 > 0:39:08I'm going for the second time at £87,000.
0:39:09 > 0:39:10Sold, on the telephone.
0:39:11 > 0:39:14So, the final bid of £87,000
0:39:14 > 0:39:16was made over the telephone.
0:39:16 > 0:39:18The identity of that secret phone bidder?
0:39:18 > 0:39:21Well, it's Stephen, a civil servant,
0:39:21 > 0:39:23who already lives in Marske-by-the-Sea
0:39:23 > 0:39:26with his wife, Jennifer, and their daughter.
0:39:27 > 0:39:30I met him back at his new purchase to find out his plans for the place.
0:39:30 > 0:39:34Once he's made it up all those stairs, of course.
0:39:36 > 0:39:37Stephen, good to meet you.
0:39:37 > 0:39:39- Nice to meet you.- Congratulations. - Thank you.
0:39:39 > 0:39:41You were the man on the phone?
0:39:41 > 0:39:45- I was a telephone bidder. I couldn't make it to the auction.- What happened part of the way through?
0:39:45 > 0:39:48It seems like you lost connection or something.
0:39:48 > 0:39:50Yeah. The mobile phone signal went dead.
0:39:50 > 0:39:52Their mobile phone signal.
0:39:52 > 0:39:55So that was a bit of a panic. So I had to ring them back.
0:39:55 > 0:39:57Luckily, it hadn't sold.
0:39:57 > 0:40:00- What were you thinking at the other end of the phone?!- "Oh, my God!"
0:40:00 > 0:40:03Cos this was real time, and if you can't bid, you can't bid.
0:40:04 > 0:40:07# I'm in the phone booth It's the one across the hall
0:40:07 > 0:40:10# If you don't answer I'll just ring it off the wall
0:40:10 > 0:40:13# I know he's there But I just had to call
0:40:14 > 0:40:18# Don't leave me Hanging on the telephone... #
0:40:19 > 0:40:22So that was a close call for Stephen.
0:40:22 > 0:40:25But he got the right result in the end, though only just.
0:40:25 > 0:40:26Phew!
0:40:28 > 0:40:30So tell me what you're going to do with it.
0:40:30 > 0:40:34What we're going to do is... There's a bit of damp work needs doing.
0:40:34 > 0:40:36A little bit of work on the electrics.
0:40:36 > 0:40:39And after that, it's just decoration and the flooring.
0:40:39 > 0:40:42And then, internal walls... Some of them are stud partitions
0:40:42 > 0:40:45and I felt that there could be a bit of rejigging that would help.
0:40:45 > 0:40:48Yeah, it would help if we were going to sell.
0:40:48 > 0:40:51But if we're going to rent, I don't think spending money like that
0:40:51 > 0:40:53would add a great deal to the monthly rental income.
0:40:53 > 0:40:55Stephen's right, of course -
0:40:55 > 0:40:58although changing the layout would help the flow of the house,
0:40:58 > 0:41:01it would have little or no effect on the potential rental price.
0:41:01 > 0:41:03It might make it easier to let,
0:41:03 > 0:41:07but the outlay may not justify the return.
0:41:07 > 0:41:08So what is the budget?
0:41:08 > 0:41:12- We would like to do it for between £4,000 and £5,000.- Right.
0:41:12 > 0:41:16- If we can do it for less, that would be great.- And what kind of involvement will you have?
0:41:16 > 0:41:19Um...just organising contractors,
0:41:19 > 0:41:21maybe tidy up the garden.
0:41:21 > 0:41:24If I can do things like rip things out...
0:41:24 > 0:41:26Bit of painting. That will be it, really.
0:41:26 > 0:41:27That's as far as my expertise goes.
0:41:27 > 0:41:30And the timescale you're hoping to get it finished in?
0:41:30 > 0:41:32- We're having a baby in February. - Oh, wow!
0:41:32 > 0:41:36We want to get it done and out the way before then, really, to cut down on the stress.
0:41:36 > 0:41:38So that's months away.
0:41:38 > 0:41:41But how quickly do you think, realistically, you are going to get it done?
0:41:41 > 0:41:43- Between four and six weeks.- OK.
0:41:43 > 0:41:45- That would be great.- Straight in, get it rented out.
0:41:45 > 0:41:49Maybe advertise it for rent before we've finished, generate some interest.
0:41:49 > 0:41:52Well, good luck with it and good luck with the baby.
0:41:52 > 0:41:54- Thank you very much.- Look forward to seeing how you get on.
0:41:57 > 0:42:00So, Stephen embarking on his first buy-to-let,
0:42:00 > 0:42:04and taking the very sensible approach of not spending too much doing it up.
0:42:04 > 0:42:07Will he get it done and, more importantly,
0:42:07 > 0:42:09will he get it done before his new baby arrives?
0:42:09 > 0:42:11You can find out later in the show.
0:42:15 > 0:42:18Well, it's time now to pay a visit to our plucky developers.
0:42:18 > 0:42:22Will they welcome us back with tales of success and soaring profits,
0:42:22 > 0:42:24or will things have turned sour?
0:42:24 > 0:42:26Let's find out.
0:42:29 > 0:42:32Just on the outskirts of London, in the suburb of Northolt,
0:42:32 > 0:42:34we came across a plot of land
0:42:34 > 0:42:37that, frankly, looked nothing more than a bit of scrubland
0:42:37 > 0:42:38with an old garage on it.
0:42:41 > 0:42:43At first glance, it had little or no potential
0:42:43 > 0:42:46to be anything other than perhaps a bit of additional parking.
0:42:47 > 0:42:50With no planning permission, it was hard to see much value in it.
0:42:50 > 0:42:55But property agent Zaki bought it at auction for £36,000
0:42:55 > 0:42:57on behalf of his client.
0:42:59 > 0:43:02Together, they hoped they could add a little extra to their purchase.
0:43:02 > 0:43:04# More than this... #
0:43:07 > 0:43:10What I want to know is, what are you going to do with it?
0:43:10 > 0:43:11It's quite a small plot, isn't it?
0:43:11 > 0:43:15Why I bought this land is because our client has got a house next to it.
0:43:15 > 0:43:18And we can use some of the land from there.
0:43:18 > 0:43:21- And they live there?- They own the house - they don't live there.
0:43:21 > 0:43:24- So you're hoping to take a little bit of their land... - Their land, yes.
0:43:24 > 0:43:26And then do what?
0:43:26 > 0:43:28And build maybe two three-bedroom flats or a house.
0:43:28 > 0:43:31The extra land did make the idea of a new build
0:43:31 > 0:43:33on this odd plot more viable.
0:43:33 > 0:43:37But the council had refused previous applications for various reasons,
0:43:37 > 0:43:40like over-development and lack of parking.
0:43:40 > 0:43:43It was going to take a clever design and lots of effort
0:43:43 > 0:43:46to persuade the planners to allow something to happen here.
0:43:46 > 0:43:49That was down to Zaki's architect, Lowji.
0:43:51 > 0:43:54So, it's fair to say you do have a challenge on your hands with one, don't you?
0:43:54 > 0:43:56We certainly have a big challenge on this one.
0:43:56 > 0:44:00In fact, what we're also looking at is trying to make this house
0:44:00 > 0:44:03as part of a closer-to-zero carbon...
0:44:03 > 0:44:06There's no such thing as zero carbon,
0:44:06 > 0:44:08but we're looking to build this house
0:44:08 > 0:44:11as close as we can to zero carbon.
0:44:11 > 0:44:16So it's going to comply well above the minimum building regulations standard.
0:44:16 > 0:44:19They hoped to build their three- to four-bedroom, carbon-neutral house
0:44:19 > 0:44:22on a budget of £100,000
0:44:22 > 0:44:24and in about five months,
0:44:24 > 0:44:28provided they got that all-important planning permission.
0:44:28 > 0:44:31Well, as they say, the best-laid plans of mice and men...
0:44:31 > 0:44:33Time ticked on...
0:44:33 > 0:44:34and on...
0:44:34 > 0:44:36and on...
0:44:36 > 0:44:37and now...
0:44:37 > 0:44:41three-and-a-half years later, we're back.
0:44:41 > 0:44:44So has the wait been worth it?
0:44:49 > 0:44:50Oh, yes!
0:44:50 > 0:44:52At last, Zaki and Lowji
0:44:52 > 0:44:55have built a semi-detached house.
0:44:57 > 0:44:59Let's hear more about the finer details.
0:45:01 > 0:45:03The property we made is three floors,
0:45:03 > 0:45:05with a loft conversion.
0:45:05 > 0:45:06Four bedrooms altogether.
0:45:06 > 0:45:09Dining room and sitting room on the ground floor.
0:45:11 > 0:45:13There are two good-sized reception rooms on the ground floor
0:45:13 > 0:45:16and a fully fitted modern kitchen at the back,
0:45:16 > 0:45:19with French doors leading out to the garden.
0:45:21 > 0:45:23And then three bedrooms on the first floor.
0:45:26 > 0:45:28Again, the three bedrooms are bright, light
0:45:28 > 0:45:30and surprisingly spacious.
0:45:32 > 0:45:35And then one bedroom in the loft conversion.
0:45:35 > 0:45:38The loft room's a great addition,
0:45:38 > 0:45:40but because the headroom is quite tight,
0:45:40 > 0:45:42some buyers might not term it a bedroom.
0:45:44 > 0:45:46We've got three bathrooms altogether.
0:45:46 > 0:45:48So there is a washroom on every floor -
0:45:48 > 0:45:50a good family bathroom on the first floor,
0:45:50 > 0:45:53a shower room on the top floor,
0:45:53 > 0:45:56and a smaller cloakroom on the ground floor.
0:45:56 > 0:45:59And we've got plenty of parking on the side and a rear garden as well.
0:45:59 > 0:46:03So their patience does appear to have paid off.
0:46:03 > 0:46:07But why did it take Zaki and his architect, Lowji, so long?
0:46:07 > 0:46:11# Have a little patience... #
0:46:13 > 0:46:16Initially, we wanted to persuade the planning officers,
0:46:16 > 0:46:18in terms of the design, for a modern look,
0:46:18 > 0:46:24where we can actually control the energy efficiency,
0:46:24 > 0:46:28but the planners were insistent that it had to match what's next door,
0:46:28 > 0:46:32so we tried to make it look more traditional,
0:46:32 > 0:46:34but a bit of modernism in it.
0:46:34 > 0:46:35They still didn't like it,
0:46:35 > 0:46:38so that process took longer,
0:46:38 > 0:46:40and every time you make an application,
0:46:40 > 0:46:42it takes at least eight weeks,
0:46:42 > 0:46:44and then back to the drawing board.
0:46:44 > 0:46:48You lose more time in doing the designs and going back to the council, back and forth.
0:46:48 > 0:46:51Like Robert the Bruce's spider,
0:46:51 > 0:46:53it was a case of try, try and try again.
0:46:53 > 0:46:56Though they may not have got what they hoped for,
0:46:56 > 0:46:59they certainly seem to have maximised the space they had available
0:46:59 > 0:47:02and even managed to find a little more.
0:47:05 > 0:47:09In terms of the garden, we actually took the rear part of the original house
0:47:09 > 0:47:12to turn that into a garden for this house.
0:47:12 > 0:47:15Eventually, there was a strip of land which was behind the garage,
0:47:15 > 0:47:19which we actually advised our client to actually buy that land,
0:47:19 > 0:47:22so we managed to give them a bit more garden than we originally thought.
0:47:22 > 0:47:25But the planning was granted without that land.
0:47:25 > 0:47:28By purchasing the land behind the garage,
0:47:28 > 0:47:30it's actually given our client the opportunity
0:47:30 > 0:47:33to put yet another house in the back garden.
0:47:33 > 0:47:37Now with plans to build yet another three- or four-bed house on the land behind,
0:47:37 > 0:47:40they're going to be busy here for some time to come.
0:47:42 > 0:47:44Bearing in mind that time is money,
0:47:44 > 0:47:48how much has it cost their client to build this three- to four-bedroom house
0:47:48 > 0:47:51with its three washrooms and modern living accommodation?
0:47:54 > 0:47:57To build this house is about £160,000.
0:47:57 > 0:48:01And to apply for the planning permission, to get the fees for the architect,
0:48:01 > 0:48:05council permits and building control is about £20,000.
0:48:05 > 0:48:08And then we bought the land for £36,000.
0:48:10 > 0:48:13Well, that little lot adds up to £216,000.
0:48:13 > 0:48:15But it's been three-and-a-half years
0:48:15 > 0:48:19in the making, and the property market's gone through quite a sea change.
0:48:19 > 0:48:24So, has this protracted project still been worthwhile?
0:48:24 > 0:48:27What did two local estate agents think?
0:48:30 > 0:48:31It's absolutely beautiful.
0:48:31 > 0:48:34The standard - very, very high specification.
0:48:34 > 0:48:38It's got a lovely feel to it, offers very, very generous living accommodation,
0:48:38 > 0:48:41sleeping accommodation. There's a lot of plus factors to this property.
0:48:41 > 0:48:44I think it's a very nicely presented,
0:48:44 > 0:48:47newly built three/four-bedroom end-of-terrace family home
0:48:47 > 0:48:49in an established area.
0:48:49 > 0:48:52So, in general, the house that Zaki and Lowji have built
0:48:52 > 0:48:55gets the thumbs-up from the estate agents,
0:48:55 > 0:48:58but their client has spent £216,000 on building the house.
0:48:58 > 0:49:01So has it been a good investment?
0:49:03 > 0:49:06We would market the property at £340,000.
0:49:06 > 0:49:09In my opinion, the resale value of this property
0:49:09 > 0:49:11is currently in the region of £345,000.
0:49:11 > 0:49:16Yes, I was just offered this property this morning for £360,000.
0:49:16 > 0:49:18And they want to buy within four weeks.
0:49:18 > 0:49:22Wow! An offer of £360,000
0:49:22 > 0:49:26could see a potential pre-tax profit of £144,000.
0:49:29 > 0:49:31But the original plan was to let it.
0:49:31 > 0:49:34Indeed, they have a tenant lined up,
0:49:34 > 0:49:36so how could it fare as a rental?
0:49:37 > 0:49:42We would put the property on the market for a rental figure of £1,500 per calendar month.
0:49:42 > 0:49:44In terms of the current rental value,
0:49:44 > 0:49:48I would estimate that to be in the region of £1,400 to £1,500 per calendar month.
0:49:48 > 0:49:51I think I will get about £1,600 to £1,650
0:49:51 > 0:49:52for the rental value.
0:49:52 > 0:49:55And I'm not going to market it at £1,500.
0:49:55 > 0:49:58Zaki believes because it's a new-build,
0:49:58 > 0:50:02he'll manage to get a rent of at least £1,600 per calendar month,
0:50:02 > 0:50:05which would be a healthy yield of above 8%.
0:50:05 > 0:50:11So, rent or sell, it certainly seems like it was well worth waiting for.
0:50:13 > 0:50:17My client wanted to give up. I said, "No, don't give up. Keep trying."
0:50:17 > 0:50:19And we got there.
0:50:23 > 0:50:27Just five minutes from Redcar, the North Yorkshire town
0:50:27 > 0:50:31of Marske-by-the-Sea is a quiet coastal retreat.
0:50:33 > 0:50:36Tucked away from the town centre, up a small lane,
0:50:36 > 0:50:39we came a cross a 1920s three-bed terraced cottage,
0:50:39 > 0:50:41which, although in OK condition,
0:50:41 > 0:50:43had a rather boxy layout.
0:50:45 > 0:50:49There were some interesting style features and three decent bedrooms.
0:50:51 > 0:50:52There was an OK bathroom.
0:50:55 > 0:50:57But the main downside - or maybe that should be upside -
0:50:57 > 0:51:01was that you needed to be a mountain goat to reach it.
0:51:03 > 0:51:05But despite the hike to the front door,
0:51:05 > 0:51:08local man Stephen thought it would make a great buy-to-let.
0:51:08 > 0:51:11He wasn't able to attend the auction himself,
0:51:11 > 0:51:15and technology nearly cost him very dear.
0:51:17 > 0:51:18The mobile phone signal went dead.
0:51:18 > 0:51:20Their mobile phone signal.
0:51:20 > 0:51:22So that was a bit of a panic. So I had to ring them back.
0:51:22 > 0:51:24Luckily, it hadn't sold.
0:51:24 > 0:51:28- What were you thinking at the other end of the phone?!- "Oh, my God!"
0:51:28 > 0:51:31Cos this was real time, and if you can't bid, you can't bid.
0:51:31 > 0:51:33- # Call me - Call me
0:51:33 > 0:51:37# On the line When you're ready we can share the wine
0:51:37 > 0:51:39# Call me... #
0:51:39 > 0:51:40So it was a close call.
0:51:40 > 0:51:43But Stephen did manage to beat the deadline
0:51:43 > 0:51:45and successfully purchase the property
0:51:45 > 0:51:47for £87,000.
0:51:47 > 0:51:49He had another deadline to meet,
0:51:49 > 0:51:52with his second child due in five months.
0:51:52 > 0:51:54So there was to be no hanging about for him.
0:51:54 > 0:51:58He hoped that, with a £4,000 to £5,000 budget,
0:51:58 > 0:52:00he could turn it round ASAP.
0:52:07 > 0:52:10Now, four months later, it was time for us to call in
0:52:10 > 0:52:12and see what progress had been made.
0:52:14 > 0:52:16I feel it's turned out relatively well.
0:52:16 > 0:52:18I would have liked to have a little more time
0:52:18 > 0:52:20to put a few more finishing touches in,
0:52:20 > 0:52:24but we had somebody that wanted to be in in a rush, so we got it to a state
0:52:24 > 0:52:26where it would be a nice home for somebody.
0:52:31 > 0:52:33The property wasn't in too bad a condition.
0:52:33 > 0:52:36So we only had to do cosmetic work initially, really.
0:52:36 > 0:52:39We put new carpets in, we did some replastering,
0:52:39 > 0:52:40and redecorated.
0:52:40 > 0:52:43Stephen's also had new electrics put in,
0:52:43 > 0:52:47and an air brick was fitted to sort a minor damp issue.
0:52:47 > 0:52:51But otherwise, it was really just a case of getting out the paintbrush
0:52:51 > 0:52:53to refresh the three bedrooms.
0:53:15 > 0:53:18He decided to put a new suite in the bathroom,
0:53:18 > 0:53:21which means that the dark wood surround has now gone.
0:53:22 > 0:53:26As has the other dark wood surround in the house.
0:53:26 > 0:53:29Originally, what was here was a lovely stone fireplace
0:53:29 > 0:53:30with some wood cladding.
0:53:30 > 0:53:33We were tempted to just paint over the wood cladding.
0:53:33 > 0:53:36On second thoughts, we decided to just rip the lot out,
0:53:36 > 0:53:39replaster, and get rid of the gas fire. That's one less thing to worry about.
0:53:39 > 0:53:43End result, we're really happy, because it's a modern, clean finish.
0:53:49 > 0:53:51It looks like all has gone well,
0:53:51 > 0:53:56but with Stephen working full-time, how involved in the project was he?
0:53:57 > 0:53:59I mostly worked in the property on weekends,
0:53:59 > 0:54:01because I work Monday to Friday.
0:54:01 > 0:54:04I had a bit of help from family and friends, which was nice.
0:54:04 > 0:54:06Other than that, it was contractors,
0:54:06 > 0:54:08which I managed to get in through the week.
0:54:08 > 0:54:10I left them with keys, let them get on.
0:54:10 > 0:54:11And that was successful.
0:54:12 > 0:54:15There are some minor cosmetic jobs to do,
0:54:15 > 0:54:18mainly in the bathroom, and generally some tidying-up.
0:54:18 > 0:54:20It's certainly been done on time.
0:54:20 > 0:54:23What about his £4,000 to £5,000 budget?
0:54:25 > 0:54:28On the actual renovation, we spent just under £4,000.
0:54:28 > 0:54:31It would have been great if we could have spent less than that,
0:54:31 > 0:54:34but really, considering what we've done, I think we've done quite well.
0:54:37 > 0:54:41As Stephen kept the budget just below £4,000
0:54:41 > 0:54:44and bought the property for £87,000,
0:54:44 > 0:54:47his total outlay will be £91,000.
0:54:47 > 0:54:50But has his minimal approach paid dividends?
0:54:50 > 0:54:53What do two local estate agents think?
0:54:55 > 0:54:58The interior condition is quite adequate.
0:54:58 > 0:54:59Perfect for letting.
0:54:59 > 0:55:01If it was a home to be lived in,
0:55:01 > 0:55:04maybe the kitchen, bathroom could be of a higher quality.
0:55:04 > 0:55:07I think what works quite well is it's quite a spacious property,
0:55:07 > 0:55:09with two reception rooms downstairs
0:55:09 > 0:55:11and the kitchen at the rear,
0:55:11 > 0:55:14which for a modest-sized or medium-sized family,
0:55:14 > 0:55:15would work rather well.
0:55:17 > 0:55:19Stephen's already let the property.
0:55:19 > 0:55:22But as he invested £91,000 in the house,
0:55:22 > 0:55:26what kind of return could he have got if he'd sold it?
0:55:27 > 0:55:30In the current climate, I would expect to achieve
0:55:30 > 0:55:33probably circa £90,000 to £100,000 for this property.
0:55:33 > 0:55:36In the current market, I would estimate the value of this property
0:55:36 > 0:55:38to be in the region £95,000 to £100,000.
0:55:38 > 0:55:40I feel around about 100K is good,
0:55:40 > 0:55:43cos it means we've added some value to the property.
0:55:43 > 0:55:47As long as it's worth what we paid, we're happy, cos we'll keep it for quite a long time.
0:55:48 > 0:55:51So there isn't much of a profit to be had on the resale market.
0:55:51 > 0:55:54Stephen's clearly right to hang on to it
0:55:54 > 0:55:56and stick to letting it.
0:55:57 > 0:56:01In the current rental market, I would estimate the value of this property
0:56:01 > 0:56:04to be in the region of £500 to £525 per calendar month.
0:56:04 > 0:56:08The rental market is going really good right now. I would expect the property to achieve
0:56:08 > 0:56:11circa £500 to £550 per calendar month.
0:56:11 > 0:56:14Both rental figures seem reasonable.
0:56:14 > 0:56:17We've achieved a figure in the middle, so we're happy.
0:56:17 > 0:56:19And we've got a good tenant, so it's a good end result, really.
0:56:19 > 0:56:24Even on the lowest rental value of £500 per calendar month,
0:56:24 > 0:56:27Stephen will see an annual yield above 6%.
0:56:27 > 0:56:31So this will be a nice little nest-egg for him and his family.
0:56:31 > 0:56:32Will he do it again?
0:56:32 > 0:56:34I've enjoyed it. It was hard work.
0:56:34 > 0:56:37We've got a baby due in four weeks' time, our second child,
0:56:37 > 0:56:40so I probably won't be doing anything like this for a good while,
0:56:40 > 0:56:42but if the opportunity came up again, yes, we would.
0:56:44 > 0:56:45Well, that's it for now.
0:56:45 > 0:56:50We'll be back next time with more dispatches from the front line of property developing.
0:56:50 > 0:56:53- We'll look forward to seeing you then.- Goodbye for now.- Goodbye.- Bye.
0:57:01 > 0:57:03Subtitles by Red Bee Media Ltd