0:00:02 > 0:00:05Hello. If you're like Martin and me and you absolutely love property,
0:00:05 > 0:00:08sometimes it can be quite difficult to switch off,
0:00:08 > 0:00:10even in these difficult market conditions.
0:00:10 > 0:00:15Yes. When you're looking for your dream home, you could see it walking around town,
0:00:15 > 0:00:18when you're on holiday, or maybe in an estate agent's window.
0:00:18 > 0:00:20There's always temptation out there.
0:00:20 > 0:00:25And one place to really get your pulse racing is in an auction room.
0:00:49 > 0:00:53Well, when it comes to property, everyone has different requirements,
0:00:53 > 0:00:57whether that's looking for a new home or somewhere to do up and rent out.
0:00:57 > 0:01:00For some, it's about location, for others, it's about the character,
0:01:00 > 0:01:03and for the rest, well, it's about the money it can generate.
0:01:03 > 0:01:06So, here's what we've got for you on today's show.
0:01:07 > 0:01:11'The layout of this one-bed flat in Sydenham needs a rethink.'
0:01:11 > 0:01:14The first thing I would do would be to get all of these out
0:01:14 > 0:01:17and put them all along here.
0:01:17 > 0:01:21'There's a psycho shower horror in County Durham.'
0:01:21 > 0:01:27One part of the property that is completely disastrous is the bathroom.
0:01:27 > 0:01:32'And when you hear the guide price of this two-flat conversion in Stoke,
0:01:32 > 0:01:34'you might think it's a steal.'
0:01:34 > 0:01:37Just be aware that security might be a bit of an issue.
0:01:38 > 0:01:41- 'All of these properties went to auction.'- 500.
0:01:41 > 0:01:47- 'We'll find out who bought them and what they paid when they went under the hammer.'- Sold.
0:01:50 > 0:01:53'In the 19th century, the sleepy village of Sydenham
0:01:53 > 0:01:59'was a day trip on the train for Londoners wanting to escape the city's smog and soot.
0:01:59 > 0:02:04'And it became very fashionable when Crystal Palace was re-sited here.
0:02:05 > 0:02:08'It still has lovely green spaces
0:02:08 > 0:02:11'and the shops and cafes give it a trendy, villagey vibe.'
0:02:13 > 0:02:17This street is conveniently located just off Sydenham high street,
0:02:17 > 0:02:20which means you've got plenty of amenities close by,
0:02:20 > 0:02:23including the local pub, if you fancy a quick drink.
0:02:23 > 0:02:27Now, this is an area where one-bedroom flats sell on average
0:02:27 > 0:02:31for around the £160,000 mark.
0:02:31 > 0:02:34So when I tell you I'm here to see a flat of that size
0:02:34 > 0:02:37which had a guide price of only £80,000,
0:02:37 > 0:02:42well, I'm sure you're going to be as interested as I am. I'm going in.
0:02:44 > 0:02:48'It's a period dwelling and the entrance is not straight onto the street level, which is good.
0:02:48 > 0:02:53'Not so good is the shabby paintwork and the unwelcoming communal hall
0:02:53 > 0:02:55'that leads to the upstairs flat
0:02:55 > 0:02:58'and the one I am here to see.'
0:02:58 > 0:03:01Hm. Bit of a cramped entrance area.
0:03:01 > 0:03:03Not terribly inviting.
0:03:03 > 0:03:06The bedroom is through here. Quite a good space.
0:03:06 > 0:03:08A really lovely, big bay window.
0:03:08 > 0:03:15And through here into the kitchen/living area, perhaps?
0:03:15 > 0:03:18Straight away, the only redeemable feature in this room
0:03:18 > 0:03:23is that big window, and there's a blooming great load of units right across it!
0:03:23 > 0:03:25If this were my flat, the first thing I would do
0:03:25 > 0:03:29would be to get all of these out and put them all along here
0:03:29 > 0:03:32so you could enjoy that aspect.
0:03:32 > 0:03:34It's a lovely, bright, sunny space.
0:03:34 > 0:03:36Don't forget, you've got to eat in here,
0:03:36 > 0:03:40you've got to live in here, you could put a nice table and chairs under there,
0:03:40 > 0:03:43there's got to be enough room for a sofa, so I'd think carefully
0:03:43 > 0:03:45and zone this room out.
0:03:45 > 0:03:51But there's another door there, so I'm wondering what's through here.
0:03:51 > 0:03:54What is it? A-ha!
0:03:54 > 0:03:56Yes, of course, it's the bathroom!
0:03:56 > 0:04:00I quite like the way these stairs divide the space.
0:04:00 > 0:04:04It's far enough away from the kitchen to be acceptable.
0:04:04 > 0:04:06I quite like that. And there's plenty of room in there
0:04:06 > 0:04:09to maybe think about a shower cubicle,
0:04:09 > 0:04:13so you could rearrange that so it really works to your advantage.
0:04:13 > 0:04:16It's this little corridor that's rather unusual.
0:04:16 > 0:04:19This here is a partition wall.
0:04:19 > 0:04:22Let's get rid of that and open up this room
0:04:22 > 0:04:25and you can incorporate this as part of your kitchen.
0:04:25 > 0:04:27I think that would really work well.
0:04:27 > 0:04:31# In every nook and cranny
0:04:33 > 0:04:36# Could I see it there?
0:04:37 > 0:04:41'This flat is a conversion in a three-storey building.
0:04:41 > 0:04:44'Now, I have mixed feelings about conversions,
0:04:44 > 0:04:50'as sometimes you do end up with rather odd proportions and useless spaces.
0:04:50 > 0:04:54'This one isn't too bad on that front, but there are no period features, which is a shame.
0:04:54 > 0:04:58'One other point to consider with conversions is soundproofing,
0:04:58 > 0:05:00'as it's often not very satisfactory.
0:05:00 > 0:05:04'But there are more obvious areas that require attention here.
0:05:04 > 0:05:07'That kitchen is definitely beyond rescue.
0:05:07 > 0:05:11'However, after a bit of research, I feel brighter by the minute.'
0:05:12 > 0:05:15Now, I know this is a popular rental spot,
0:05:15 > 0:05:17and with the guide price of £80,000,
0:05:17 > 0:05:22I think this little flat could provide a very exciting yield.
0:05:22 > 0:05:25Time to get my calculator. Bear with.
0:05:25 > 0:05:31So, you could rent the flat out for £900 per month,
0:05:31 > 0:05:35which is £10,800 per year.
0:05:35 > 0:05:41If you spend let's say £10,000 on the refurbishments,
0:05:41 > 0:05:45then that is a total outlay of £90,000.
0:05:45 > 0:05:51Divide your rental income by your total spend, times 100,
0:05:51 > 0:05:55well, you have a rental yield of 12 percent!
0:05:55 > 0:05:57That is fantastic!
0:05:57 > 0:06:01As I suspected, this could be a great rental machine.
0:06:01 > 0:06:04# You got the money-maker
0:06:04 > 0:06:06# Show them your money-making
0:06:06 > 0:06:09# Get out, out, out
0:06:10 > 0:06:15'If someone bought this property for around the guide price of £80,000
0:06:15 > 0:06:17'it could be a real money-maker.
0:06:17 > 0:06:20'Let's find out if a local estate agent agrees.'
0:06:20 > 0:06:23The £80,000 guide price is a very good guide price.
0:06:23 > 0:06:27There's hardly any properties in Southeast London you can get for under £100,000.
0:06:27 > 0:06:30The works needed on this flat would be a new kitchen, new bathroom,
0:06:30 > 0:06:35rewire, new plumbing, and reskimming all of the walls, at least.
0:06:36 > 0:06:40'How much could this flat sell on for?'
0:06:40 > 0:06:43I think if the flat was renovated and it was renovated well,
0:06:43 > 0:06:47I think you'd get between £160,000 and £170,000.
0:06:49 > 0:06:53'Do his potential rental figures tally with mine?'
0:06:53 > 0:06:57In terms of rental, the property would rent for £900 per calendar month.
0:06:58 > 0:07:03Well, it might only have one bedroom, but the proportions of this flat work well.
0:07:03 > 0:07:08And with some modernisation, it could provide a great rental income for someone.
0:07:08 > 0:07:13However, I still feel there is some potential to improve that layout further
0:07:13 > 0:07:15and really make the most of the space on offer.
0:07:15 > 0:07:19And no-one is going to argue with that guide price.
0:07:19 > 0:07:23Let's see who seized the opportunity when we went to auction.
0:07:25 > 0:07:29Who'd like to get me started on this? 80,000 anywhere?
0:07:29 > 0:07:32Should be worth that all day long.
0:07:32 > 0:07:36How much? OK, we'll start there. Who said that?
0:07:37 > 0:07:40Both together, yeah? OK, 70, we'll start there.
0:07:40 > 0:07:4371 if you want. 71. 72.
0:07:43 > 0:07:4673. 74.
0:07:46 > 0:07:4875.
0:07:48 > 0:07:5176. 77.
0:07:51 > 0:07:5478. 79.
0:07:54 > 0:07:5780,000. 81.
0:08:00 > 0:08:0281. 82?
0:08:04 > 0:08:06Yes?
0:08:06 > 0:08:11No? OK. With you, £81,000 on my right.
0:08:11 > 0:08:14Thank you, 82. 83.
0:08:14 > 0:08:1684. 85.
0:08:16 > 0:08:1886. 87.
0:08:18 > 0:08:2088.
0:08:20 > 0:08:2289.
0:08:22 > 0:08:2689. 90,000. 91.
0:08:26 > 0:08:2991. 92. 93.
0:08:29 > 0:08:32Still cheap. 93. 94.
0:08:32 > 0:08:3495. 96.
0:08:36 > 0:08:3896. 97.
0:08:38 > 0:08:4098. 99.
0:08:40 > 0:08:43100,000, back in, nearly.
0:08:43 > 0:08:45101.
0:08:45 > 0:08:50Back with the guys on my left. £100,000. Against you on my right.
0:08:50 > 0:08:53Anybody else for lot 164?
0:08:55 > 0:08:58If not, 100 for the first,
0:08:58 > 0:09:00100 for the second,
0:09:00 > 0:09:02- 100 for the third and final time. All done? - HAMMER BANGS
0:09:04 > 0:09:07'Nipping in with that winning bid was Moheet.
0:09:07 > 0:09:10'Property development's a bit of a sideline for him,
0:09:10 > 0:09:12'with three properties he lets out.
0:09:12 > 0:09:15'His real job is being a solicitor.'
0:09:15 > 0:09:17# You're the legal man
0:09:17 > 0:09:21# You've got to prove that you're no liar
0:09:21 > 0:09:24'I met up with him at his latest purchase
0:09:24 > 0:09:26'to hear about his plans for this flat.'
0:09:27 > 0:09:31- Moheet, congratulations.- Thank you.
0:09:31 > 0:09:35What about this property did you like so much? Did you view it and do your homework?
0:09:35 > 0:09:39Erm, I never physically viewed it myself from the interior.
0:09:39 > 0:09:41I sent my father to have a look
0:09:41 > 0:09:46and he said, "Yeah, it's fine, just cosmetically it needs updating,
0:09:46 > 0:09:52"but otherwise, it's in a good location, good area, just off the high street," so I went with that.
0:09:52 > 0:09:57- So you feel happy you've got yourself a good property?- Yes, I do.
0:09:57 > 0:10:03'And I agree. Moheet's faith in his father's judgement has served him well.'
0:10:03 > 0:10:06# Father knows best
0:10:07 > 0:10:10You're a solicitor. How do you combine that with property?
0:10:10 > 0:10:13Well, I work full-time as a solicitor,
0:10:13 > 0:10:17I have my own business in Shoreditch, East London,
0:10:17 > 0:10:19and property I do on the side.
0:10:19 > 0:10:24So I put time aside and look through auction catalogues, speak to local agents,
0:10:24 > 0:10:27and I have a general keen interest in property.
0:10:27 > 0:10:30It's quite handy, as well, solicitor, property developer,
0:10:30 > 0:10:32it does kind of go hand-in-hand in a way.
0:10:32 > 0:10:36- Yeah, exactly. I don't have to pay anyone to read the legal pack. - Brilliant!
0:10:36 > 0:10:38- Yeah.- Do you read your own legal packs?- Of course.
0:10:38 > 0:10:41- And you understand it!- Yes.- Which is brilliant, cos not many people do!
0:10:41 > 0:10:47I know. I've heard a lot of stories, even clients of mine buy something without reading the legal pack.
0:10:48 > 0:10:51'For most mere mortals, the legal pack is a mighty tome.
0:10:51 > 0:10:55'But for Moheet, it's little more than light reading.
0:10:56 > 0:10:59'He believes that with the experience he's gained from previous renovations,
0:10:59 > 0:11:02'this will be a straightforward development.
0:11:03 > 0:11:05'He has a healthy budget of £10,000
0:11:05 > 0:11:08'with a £2,000 contingency
0:11:08 > 0:11:11'and hopes to have this flat ready to let in eight weeks.'
0:11:11 > 0:11:16Now, I think the best way to add value to a property, of course,
0:11:16 > 0:11:21- is to either extend or to find areas that you can improve on.- Yes.
0:11:21 > 0:11:26What are you going to do with this flat? Because it is very small. How do you think you can improve this?
0:11:26 > 0:11:32Well, it needs a major renovation. I intend to put in a new bathroom, new kitchen,
0:11:32 > 0:11:38there is a wall which I intend to take down, as well, to make the property feel a lot bigger.
0:11:38 > 0:11:40Look at this. That's a waste of space!
0:11:40 > 0:11:44You can get rid of that wall for starters and you can really open this room up.
0:11:44 > 0:11:46Yes. I'd like to take that wall down.
0:11:46 > 0:11:51It would create a bit more space, make the living room/kitchen feel a lot bigger.
0:11:51 > 0:11:54I don't think it serves any particular purpose whatsoever.
0:11:54 > 0:11:59One of the nicest things in this room is that rather grand window.
0:11:59 > 0:12:02But you've got a whole stack of units and a sink going right across it
0:12:02 > 0:12:05and you really lose the proportions of the window.
0:12:05 > 0:12:09What about putting the kitchen somewhere else, against another wall, along there, for instance?
0:12:09 > 0:12:14I have been advised by a building contractor who came to see the property that
0:12:14 > 0:12:20that is probably the best location, so you get full functional use of the window.
0:12:20 > 0:12:25It looks odd but I think we'll try and fit it on that side of the room.
0:12:25 > 0:12:29- It's been fantastic meeting you today. Good luck.- Thank you.- I look forward to seeing what you do.
0:12:29 > 0:12:31- Thank you very much. - Good luck.- Thank you.
0:12:34 > 0:12:38Well, anybody that enjoys reading a legal pack and understands it
0:12:38 > 0:12:40gets a gold star from me.
0:12:40 > 0:12:44I like the fact that Moheet trusted his dad's judgement
0:12:44 > 0:12:48and he bought himself this great little flat for a decent price.
0:12:48 > 0:12:51So far, there seems to be no strings attached here,
0:12:51 > 0:12:55but when it comes to property, we all know that appearances can be deceptive.
0:12:55 > 0:12:59Will this really be a project without an incident for Moheet?
0:12:59 > 0:13:02Join me later in the show and you can find out.
0:13:08 > 0:13:11'This is County Durham in the Northeast of England
0:13:11 > 0:13:14'and I'm near the coastal town of Seaham.
0:13:14 > 0:13:18'With its stunning cliff-top views over the harbour and restored beach,
0:13:18 > 0:13:22'it's no surprise that Seaham now thrives on tourism,
0:13:22 > 0:13:25'while the rows and rows of red-brick terraces
0:13:25 > 0:13:28'reflect the town's rich history of mining.
0:13:28 > 0:13:34'All this is just a short bus journey from the ex-colliery village of Murton, where I'm off to today.'
0:13:34 > 0:13:39Well, the property I'm here to see has certainly got great transport links.
0:13:39 > 0:13:43Right outside it is a bus stop. Good stuff.
0:13:43 > 0:13:48It's actually this here. It's a three-bed semidetached on a corner plot.
0:13:48 > 0:13:52Had a guide price of 59,950 quid. Let's take a look.
0:13:52 > 0:13:55'OK, it might be rather close to the bus stop,
0:13:55 > 0:13:59'but this former local authority house does appear to be in good condition.'
0:14:01 > 0:14:05Oh, nice big entrance. I like that.
0:14:05 > 0:14:08Somewhere to hang your coats. That's what you need, practical space.
0:14:08 > 0:14:14Stairs up to bedrooms and bathroom. Nice size living room there with a bay window, so that's good.
0:14:14 > 0:14:18Down a slightly dark corridor, through to the kitchen.
0:14:18 > 0:14:22This is where it starts to go a bit strange, cos in terms of kitchen units,
0:14:22 > 0:14:28a little bit minimalistic. And, obviously, if you like tongue and groove, it's ideal.
0:14:28 > 0:14:32But I don't think this is making the most of the space, for sure.
0:14:32 > 0:14:36I would, I think, be radical. Knock out the whole of this wall,
0:14:36 > 0:14:42make it a really through-flow kind of feel to this lower part of the house.
0:14:42 > 0:14:46So you've got the lounge there, a sort of lounge/dining room area here.
0:14:46 > 0:14:51Open that out with a set of French doors and Bob's your uncle!
0:14:51 > 0:14:55'Yes, taking out that dividing wall would do wonders for the layout
0:14:55 > 0:14:58'and no doubt make it a more desirable home.
0:14:59 > 0:15:03'Through the kitchen door is a handy little utility area.
0:15:03 > 0:15:09'But if you think this ground floor layout needs a bit of attention, just take a look upstairs.'
0:15:09 > 0:15:15Well, one part of the property that is completely disastrous is the bathroom.
0:15:15 > 0:15:20As you can see, they've built the bath into this little alcove.
0:15:20 > 0:15:22It's horrible, it's claustrophobic,
0:15:22 > 0:15:25and if you change nothing else in this house,
0:15:25 > 0:15:27that has to go!
0:15:27 > 0:15:30- HE SIGHS - Calm down. Deep breath.
0:15:30 > 0:15:35Meanwhile, up here, lots of space. Three decent size bedrooms, a separate loo.
0:15:35 > 0:15:37Phew.
0:15:37 > 0:15:41'Thank goodness for those three bedrooms. There are two at the front,
0:15:41 > 0:15:44'one large and one not so large, while at the back of the house,
0:15:44 > 0:15:49'there's a good size bedroom which has the slight look of a sauna about it.
0:15:49 > 0:15:53'Definitely a house for tongue and groove enthusiasts.
0:15:53 > 0:15:57'So, like the rest of the house, those bedrooms need work.
0:15:57 > 0:16:00'Now for the garden, carefully avoiding that bathroom on the way down.'
0:16:00 > 0:16:04Well, at the rear of the house, not a huge amount of space,
0:16:04 > 0:16:08as the corner plot disappears to a triangle at this point.
0:16:08 > 0:16:12But a few nice shrubs and fairly low-maintenance because of all this concrete.
0:16:12 > 0:16:16But while we're out here, take a look at the back, which you should always do when you visit a property.
0:16:16 > 0:16:21As you can see, nothing too scary. We've got hardwood windows but only single-glazed.
0:16:21 > 0:16:25The guttering and the fascia boards could do with a bit of a paint.
0:16:25 > 0:16:27But nothing out here too much that frightens me.
0:16:27 > 0:16:29'As long as I don't go near that bathroom.
0:16:29 > 0:16:35'But overall, apart from its layout issues, it's a great little property with bags of potential
0:16:35 > 0:16:37'for that guide price of £60,000.
0:16:40 > 0:16:44'Time for a second opinion, so we asked a local estate agent
0:16:44 > 0:16:47'for his thoughts on this three-bed semi in Murton.'
0:16:47 > 0:16:51First impressions of the property, it seems structurally sound.
0:16:51 > 0:16:54There's no sign of any rising damp, no sign of any penetrating damp,
0:16:54 > 0:16:56which would tend to suggest the roof's in good order.
0:16:57 > 0:17:01I think first on the list of things to do would be a new kitchen,
0:17:01 > 0:17:06maybe an alteration of the layout of the kitchen,
0:17:06 > 0:17:11a new bathroom and a general overhaul, which would include redecoration and some reskimming.
0:17:11 > 0:17:18'Just what I thought. Great minds... But is this three-bed semi right for the Murton property market?'
0:17:18 > 0:17:22There's certainly a demand for this sort of property in both sales and rentals.
0:17:22 > 0:17:26Thankfully, it's in quite a low price bracket, which will attract first-time buyers.
0:17:26 > 0:17:29It'll attract the small family, as well, because it's a three-bedroom property.
0:17:29 > 0:17:34'What sort of returns could this place achieve, first if sold on?'
0:17:34 > 0:17:39Once renovated, I'd expect the property to achieve between £85,000 and £90,000.
0:17:39 > 0:17:43- 'And if let?'- Once renovated, I would think this would achieve
0:17:43 > 0:17:48between £475 and £495 per calendar month.
0:17:49 > 0:17:52So, a good, solid house with loads of space.
0:17:52 > 0:17:56Yes, it needs a bit of work, especially the kitchen and bathroom, surprise, surprise,
0:17:56 > 0:17:58but in general, a good one to go for.
0:17:58 > 0:18:00Let's see who agreed when it went under the hammer.
0:18:01 > 0:18:06Lot number 38. We've got this with a price guide of £60,000.
0:18:06 > 0:18:10Anyone want to pay and give me 60,000?
0:18:10 > 0:18:1258? 56?
0:18:12 > 0:18:1555,000 anywhere?
0:18:15 > 0:18:19One bid of 55. I can't sell it at that, but we're off and running.
0:18:19 > 0:18:21Anyone want to play in? Anything further?
0:18:21 > 0:18:2556,000 on the front row. 57? I'll take 500.
0:18:26 > 0:18:31I'm going to sell to the lady at 56. I'm selling it once at 56.
0:18:31 > 0:18:33For the second time at £56,000.
0:18:33 > 0:18:39- HAMMER BANGS - Sold to the lady on the front row at £56,000.
0:18:39 > 0:18:42Buying at auction's easy, isn't it? One bid and you're in.
0:18:44 > 0:18:46'Easy-peasy in this case, that's for sure.
0:18:46 > 0:18:49'That successful and only bid made by Julie
0:18:49 > 0:18:53'was on behalf of her son and his partner, Nicole.
0:18:53 > 0:18:57'Nicole came to meet me at the property without her partner, Richard.
0:18:57 > 0:18:59'It turns out he's a very busy man,
0:18:59 > 0:19:02'as he couldn't even make it to the auction,
0:19:02 > 0:19:06'where they managed to get the three-bed semi for £56,000,
0:19:06 > 0:19:10'£4,000 under the guide price.'
0:19:10 > 0:19:13- Nicole, lovely to meet you. - Nice to meet you, too. - Congratulations.- Thank you.
0:19:13 > 0:19:17- Tell me why you wanted to buy this place.- It's very close to our farm,
0:19:17 > 0:19:20just up the road, a turkey farm up in Murton.
0:19:20 > 0:19:23- A turkey farm? - A turkey farm.- Oh, wow!
0:19:23 > 0:19:25For Christmas. Someone's got to do it.
0:19:25 > 0:19:28So we wanted this property because we want to make a bit of an investment
0:19:28 > 0:19:31but we want to move into somewhere straight away.
0:19:31 > 0:19:33- So it's to live in?- Yes.
0:19:33 > 0:19:36I hardly see my partner at the minute, cos with him being a farmer,
0:19:36 > 0:19:40he's working an average of 14 hours a day, so I hardly see him,
0:19:40 > 0:19:43so we want to live together and hopefully one day move into the farmhouse
0:19:43 > 0:19:48and the money off the house when we resell will hopefully go towards a bungalow for his mother and father.
0:19:48 > 0:19:52- OK. Great. So quite convenient, where it's located.- Yes.
0:19:52 > 0:19:55You go up the main road, turn right and it's there.
0:19:55 > 0:19:59- And that was one of the main reasons for buying this.- Yes. It's so close.
0:19:59 > 0:20:02- Tell me more about the farm. How many turkeys have you got? - About 500.
0:20:02 > 0:20:07- 500? Free-range? - Yes. They all live outside and come in on a night when they're ready.
0:20:07 > 0:20:09- Do they?- Yes. HE LAUGHS
0:20:09 > 0:20:14- What do they do at night? They don't go up on perches like chickens, do they?- I don't know.
0:20:14 > 0:20:17I haven't really sat in enough to know.
0:20:17 > 0:20:19# Gobble-diddle-ip, gobble-gobble-diddle-ip
0:20:19 > 0:20:22# Gobble-diddle-ip, gobble-gobble-diddle-ip
0:20:22 > 0:20:25# Come on, let's turkey trot
0:20:26 > 0:20:29# Let's get it while it's hot
0:20:29 > 0:20:32'Whisper it quietly, but it seems that getting this place
0:20:32 > 0:20:35'has killed two birds with one, well, auction bid.
0:20:35 > 0:20:38'Nicole and Richard will have a home together, and when done,
0:20:38 > 0:20:43'it'll provide the finances for a new house for Richard's parents.
0:20:43 > 0:20:46'So let's talk turkey about what the couple have planned here.'
0:20:46 > 0:20:49This house is a bit of a project.
0:20:49 > 0:20:52Hopefully, getting it at the price we did, it'll be a bit of an investment.
0:20:52 > 0:20:55There is work to be done to it, but it's not loads.
0:20:55 > 0:20:59We can just move in straight away and just do things as we can afford it.
0:20:59 > 0:21:02Right. OK. Have you got a budget for what you're planning?
0:21:02 > 0:21:05No, we haven't. Just as we can afford things, we're going to do it.
0:21:05 > 0:21:08So at the moment, zero budget?
0:21:08 > 0:21:13- Well, budget of how much we can afford out of our bank accounts. - Right.
0:21:13 > 0:21:16So, what are you going to do, then, to start off with?
0:21:16 > 0:21:19I think we'll start in here, in the kitchen.
0:21:19 > 0:21:23It's a dining room at the minute, but we're going to move the kitchen into here,
0:21:23 > 0:21:25make an L-shape of units
0:21:25 > 0:21:29and then really work on the bathroom, cos the bathroom is in much need of looking at.
0:21:29 > 0:21:32Right. It's currently two, isn't it? A bathroom and a separate loo.
0:21:32 > 0:21:37- Are you going to keep it like that? - No. Knock the wall through, make it into a longer bathroom,
0:21:37 > 0:21:41and the bath with the tower at the end,
0:21:41 > 0:21:46- we're going to knock that through so it's an actual bathroom and not a little corner to hide in.- Right.
0:21:46 > 0:21:51- So that doesn't come for no budget. - No, it doesn't.
0:21:51 > 0:21:56- How are you going to cope with it? - We'll just save and then we'll do it when we can.
0:21:56 > 0:21:59- Literally a bit at a time. - Yeah. Sounds crazy, but yeah.
0:21:59 > 0:22:03- Well, no! But in the meantime, you're going to be living here.- Yes. Move in as soon as we get the keys.
0:22:03 > 0:22:08It's obviously difficult for young people to get on the property ladder at the moment.
0:22:08 > 0:22:13- How have you managed to achieve this?- Well, it's going to be part of an investment with the farm.
0:22:13 > 0:22:18Richard's now becoming a partner, so his first investment is going to be to do up this house
0:22:18 > 0:22:22so we can live together, but at the end of it, we will be able to sell it on
0:22:22 > 0:22:25or rent it and get something from it.
0:22:25 > 0:22:28'Whether they decide to sell or let this investment,
0:22:28 > 0:22:32'it will provide income to go towards a new house for Richard's parents,
0:22:32 > 0:22:34'which will most likely be built on the farmland.
0:22:34 > 0:22:38'As with their unknown budget and the timescale for the work,
0:22:38 > 0:22:42'how long they'll be living there is equally up in the air.
0:22:42 > 0:22:45'That will depend on when Richard's parents decide to retire.'
0:22:47 > 0:22:50- Tell me a bit more about you.- I'm at university studying photography. - Oh, wow.
0:22:50 > 0:22:55Part-time working on the farm with children and animals.
0:22:55 > 0:22:59- And in terms of property renovation, have you ever done any?- No, none.
0:22:59 > 0:23:03- Are you going to get involved with the actual renovation? - Oh, yeah, definitely.
0:23:03 > 0:23:08With Richard working long hours, I'll have to do things when he can't, and then when I'm busy, he can.
0:23:08 > 0:23:13- Any DIY experience at all? - I can paint. HE LAUGHS
0:23:13 > 0:23:16Well, that's a good start. And presumably stripping wallpaper.
0:23:16 > 0:23:20- Yes.- And taking things to pieces. - Mm-hm. - Doesn't requite too much skill.
0:23:20 > 0:23:24- No, not really. Don't think so.- Well, listen, congratulations.- Thank you.
0:23:24 > 0:23:28- Good luck. We'll look forward to seeing how you get on. - OK. Thank you very much.
0:23:29 > 0:23:34Well, it seems this place is absolutely ideal for Nicole and her partner.
0:23:34 > 0:23:38Bit of work to do to sort it out, but just as well there isn't too much
0:23:38 > 0:23:41when you haven't got any budget whatsoever.
0:23:41 > 0:23:46Will she manage to turn this slightly ugly duckling into a beautiful swan?
0:23:46 > 0:23:51Hopefully not a turkey. You can find out later in the show.
0:23:51 > 0:23:55'Coming up, there are plenty of shocks at this Stoke property.'
0:23:57 > 0:24:00What a surprise this place is turning out to be.
0:24:01 > 0:24:07'Back in County Durham, it's been hard work for Nicole's boyfriend, Richard.'
0:24:07 > 0:24:11Scrambling about under these floorboards for days on end isn't a great deal of fun.
0:24:13 > 0:24:17'But first, nothing was safe when Moheet got going.'
0:24:17 > 0:24:21We stripped the whole place out and we've had a complete renovation.
0:24:26 > 0:24:30'Time to return to sunny Sydenham in Southeast London
0:24:30 > 0:24:33'and this one-bedroom ground-floor townhouse conversion
0:24:33 > 0:24:37'which had a guide price of £80,000 at auction.
0:24:39 > 0:24:44'While it was certainly small, it was far from perfectly formed.
0:24:44 > 0:24:49'Poorly converted and maintained, its dark corners were crying out for a face-lift.
0:24:53 > 0:24:58'The flat was purchased at auction by Moheet for £100,000.
0:24:58 > 0:25:01'He's a solicitor and part-time property developer.
0:25:03 > 0:25:09'He planned to transform the place from small and dingy to compact and desirable.'
0:25:09 > 0:25:11What are you going to do with this flat? Because it is very small.
0:25:11 > 0:25:13It needs a major renovation.
0:25:13 > 0:25:17I intend to put in a new bathroom, new kitchen.
0:25:17 > 0:25:19Look at this. That's a waste of space.
0:25:19 > 0:25:21Yes. I'd like to take that wall down.
0:25:21 > 0:25:25I don't think it serves any particular purpose whatsoever.
0:25:25 > 0:25:28'So nine weeks later, we're back.
0:25:32 > 0:25:35'Has Moheet made the most of this auction lot?'
0:25:35 > 0:25:39# Making the most of what we have got
0:25:39 > 0:25:41# I know that it's not a lot
0:25:42 > 0:25:46# Making the most of what we have got
0:25:46 > 0:25:49# I know that it's not a lot
0:25:49 > 0:25:52# But it's gonna have to do
0:25:54 > 0:25:57'It's evident that work is still underway,
0:25:57 > 0:26:01'but just as evident that Moheet is close to completing
0:26:01 > 0:26:05'the cosy, comfortable and modern flat he'd envisaged.'
0:26:05 > 0:26:09# Making the most of what we have got
0:26:09 > 0:26:14The first thing we did was get a skip and throw everything out.
0:26:14 > 0:26:18And we've done a complete renovation, so we've renovated the bathroom,
0:26:18 > 0:26:22we've moved the kitchen from the window along the wall
0:26:22 > 0:26:28and we've taken the skirtings out, we've taken the flooring out, taken the doors out and replaced them all.
0:26:29 > 0:26:33'Moheet has made the most out of the compact kitchen and living space.
0:26:33 > 0:26:38'He has opened up the area around the window, just as I'd hoped he would.
0:26:38 > 0:26:41That allows the window to become a feature of the room.
0:26:43 > 0:26:46'And by removing the partition wall,
0:26:46 > 0:26:48'he has maximised the floor space available.'
0:26:49 > 0:26:56What we have done is, there was a partition wall between the kitchen and the hallway.
0:26:56 > 0:27:01That's come out. Removing the wall in the kitchen has made a big difference to the space
0:27:01 > 0:27:03and it makes the flat feel a lot bigger.
0:27:05 > 0:27:08'The flat now has a smoother flow from one room to the next.
0:27:08 > 0:27:12'By opening it up, Moheet has allowed natural light
0:27:12 > 0:27:15'to eliminate the dark corners.
0:27:15 > 0:27:17'And his transformation of the bathroom
0:27:17 > 0:27:21'has added a touch of the wow factor.'
0:27:21 > 0:27:25The bathroom was a complete mess when we bought it,
0:27:25 > 0:27:27so we stripped everything out,
0:27:27 > 0:27:32we've put in a new toilet, a new sink, new bath, new flooring
0:27:32 > 0:27:37and retiling, done a small feature wall, as well.
0:27:37 > 0:27:42'It's lovely little touches like this and the refurbished sash windows
0:27:42 > 0:27:45'which have helped to elevate this renovation.
0:27:45 > 0:27:49'Moheet has also installed a new boiler and central heating system.
0:27:49 > 0:27:52'The electrics have been serviced and certified
0:27:52 > 0:27:55'and the walls and ceilings have been replastered.
0:27:55 > 0:28:00'He had a £10,000 budget with a two grand contingency.
0:28:00 > 0:28:02'Did he manage to stay on track?'
0:28:02 > 0:28:05I've come on budget. I don't know the exact figures,
0:28:05 > 0:28:08but I know that I haven't spent more than ten.
0:28:08 > 0:28:13'Moheet is confident he will be on budget when the work is finished here.
0:28:13 > 0:28:16'Added to his purchase price of £100,000,
0:28:16 > 0:28:20'that will mean a total outlay of 110 grand.
0:28:21 > 0:28:27'He is a bit behind schedule, though, having hoped to have the renovation completed in eight weeks.
0:28:27 > 0:28:29'But is he happy with the development?'
0:28:30 > 0:28:34I think the overall renovation has gone very well.
0:28:34 > 0:28:37It's nice and a light space to live in
0:28:37 > 0:28:41and I think there's been some good changes to the place.
0:28:45 > 0:28:49'We asked two local estate agents to give us their opinion
0:28:49 > 0:28:51'on Moheet's renovation.'
0:28:53 > 0:28:56Looks nice and cool and fresh. Little bit on the small side.
0:28:56 > 0:29:00The bathroom's very high spec, very boutique.
0:29:00 > 0:29:02Very nice indeed.
0:29:02 > 0:29:05I believe the property has been nicely presented, good location.
0:29:05 > 0:29:08It's slightly on the small side.
0:29:08 > 0:29:12It's got a quirky layout, which will deter some but will be attractive to others.
0:29:12 > 0:29:16Generally, I think it's a nice first-time purchase, nice one-bed flat.
0:29:17 > 0:29:21'Moheet is undecided whether to sell up or rent out.
0:29:21 > 0:29:25'Perhaps the estate agents' valuations will help him decide.'
0:29:27 > 0:29:29On the rental market, I believe it would achieve
0:29:29 > 0:29:32somewhere between £750 and £800 per calendar month.
0:29:32 > 0:29:35On the rental side, I believe it would achieve £800 per calendar month.
0:29:37 > 0:29:40'£800 per calendar month would earn Moheet a yield
0:29:40 > 0:29:45'of just over 8.5 percent. Is he happy with that?'
0:29:45 > 0:29:49I was expecting more around the £900 a month figure.
0:29:49 > 0:29:51But it's OK.
0:29:52 > 0:29:56'Perhaps the sell-on valuations will be more to Moheet's liking,
0:29:56 > 0:30:02'bearing in mind his total spend of around £110,000.'
0:30:02 > 0:30:04If I was to put the property up for sale,
0:30:04 > 0:30:07we would expect to achieve in the region of £150,000.
0:30:07 > 0:30:12I would value the property at between £165,000 and £170,000.
0:30:12 > 0:30:16'Those valuations, if achieved, would give Moheet a profit
0:30:16 > 0:30:21'of between £40,000 to £60,000, minus tax and expenses.
0:30:22 > 0:30:25'Is resale a more attractive proposition?'
0:30:25 > 0:30:29That's within my expectation. The 150 mark was what I was expecting.
0:30:29 > 0:30:32So anything above that is great.
0:30:35 > 0:30:38# Making the most of what we have got
0:30:38 > 0:30:41# I know that it's not a lot
0:30:41 > 0:30:45'Well, they say the best things come in small packages
0:30:45 > 0:30:48'and this one could deliver Moheet a big profit.
0:30:48 > 0:30:52'So, is it enough to tempt him back to another auction?'
0:30:52 > 0:30:54Definitely, yes, I will be doing this again.
0:30:59 > 0:31:04'I'm in Staffordshire, where the potteries industry all started,
0:31:04 > 0:31:07'and you can still see its legacy all around.'
0:31:07 > 0:31:09# China in your hand
0:31:09 > 0:31:15Well, it's lovely to see the old potteries integrated into the regeneration of the area.
0:31:15 > 0:31:19This one is 200 years old and Grade II listed.
0:31:19 > 0:31:22And since it closed as a pottery, it's been used as a brush factory,
0:31:22 > 0:31:25a restaurant, and now it's a design studio.
0:31:25 > 0:31:27Before that, though, it was a jazz club.
0:31:27 > 0:31:31I wonder if the property I'm here to see will be modern or traditional.
0:31:32 > 0:31:37'The auction lot I'm viewing is located in the Stoke suburb of Shelton,
0:31:37 > 0:31:40'home to the main Staffordshire University campus.
0:31:40 > 0:31:45'So, not surprisingly, Shelton has a large student population.'
0:31:45 > 0:31:51Well, the property I'm here to see is a house which has already been converted into two flats.
0:31:51 > 0:31:55Guide price was £45,000.
0:31:55 > 0:31:59This is it. It looks a little bit grubby from the outside,
0:31:59 > 0:32:01but one thing you've got to say, it's huge!
0:32:01 > 0:32:05So for that money, it's looking good already.
0:32:07 > 0:32:10Definitely one of those properties that I don't know what I'm going to find
0:32:10 > 0:32:13until I step through the front door.
0:32:13 > 0:32:17But what have we got? Well, as I said, it's been converted into two flats,
0:32:17 > 0:32:21upstairs there and downstairs here. Before I go any further,
0:32:21 > 0:32:27one thing when you are converting it's worth considering the cost of is splitting the electricity.
0:32:27 > 0:32:31If you have a house, it normally has one supply of electricity coming into it.
0:32:31 > 0:32:35Converting it into flats, you have to have those electricity supplies split into two
0:32:35 > 0:32:37and that can be terribly expensive.
0:32:37 > 0:32:41In this case, there are two meters, so the good news is that all that's been done.
0:32:41 > 0:32:44Obviously, it has been operated as two flats.
0:32:44 > 0:32:48Into the ground floor one and doesn't look too bad.
0:32:48 > 0:32:52A bit shabby around the edges and in need of renovation.
0:32:52 > 0:32:54But in terms of space, what a lovely surprise.
0:32:54 > 0:32:59This room here, two bay windows, absolutely great.
0:32:59 > 0:33:04No obvious signs of structural problems. A bit of damp here and there but nothing too worrying.
0:33:04 > 0:33:08What does cause me a little bit of concern is the blindingly obvious,
0:33:08 > 0:33:12which is the fact that there are these security shutters on the windows
0:33:12 > 0:33:18and the glass in most of the windows, as it turns out, has been broken, probably vandalised.
0:33:18 > 0:33:22You do have to factor that into your thought processes.
0:33:22 > 0:33:27Why has that happened? Is it something which happens a lot around this area? I don't know.
0:33:27 > 0:33:30I'd want to talk to the neighbours and maybe chat to the police,
0:33:30 > 0:33:32find out what the situation is.
0:33:32 > 0:33:35And then, when you come to do renovations,
0:33:35 > 0:33:39just be aware that security might be a bit of an issue.
0:33:39 > 0:33:43# I want security, yeah
0:33:43 > 0:33:46# And I want it at any cost
0:33:47 > 0:33:50'Also in the ground-floor flat, next to the front door,
0:33:50 > 0:33:54'there's a very large bedroom with this bay window.
0:33:57 > 0:34:02'Then down a long corridor at the back, there's a second, much smaller bedroom,
0:34:02 > 0:34:07'plus a small, very dusty and grubby-looking bathroom, although the suite may be salvageable.
0:34:07 > 0:34:09'But the kitchen's been totally stripped out.
0:34:09 > 0:34:13'The boiler remains, but if this property has been vandalised,
0:34:13 > 0:34:16'there could be lots of pipe work missing.
0:34:16 > 0:34:23'However, this auction lot certainly has a lot of square-footage for that guide price for £45,000.
0:34:23 > 0:34:28'Let's see if the flat on the first floor is as spacious and as damaged.'
0:34:28 > 0:34:33So, into the upstairs flat, and round that way you've got your living area,
0:34:33 > 0:34:36a tiny little room and your first bedroom,
0:34:36 > 0:34:39but then, once again, the TARDIS-like qualities of this place
0:34:39 > 0:34:42just come brimming to the fore.
0:34:42 > 0:34:45Down this corridor, a second bedroom, a bit smaller.
0:34:45 > 0:34:50A little area for your boiler. A bathroom and loo. I think that's pretty serviceable.
0:34:50 > 0:34:53But then through into the kitchen.
0:34:53 > 0:34:56Not a bad size space, but again, lots of work required.
0:34:56 > 0:35:00But, you know, what a surprise this place is turning out to be.
0:35:00 > 0:35:04Yes, there's work to be done, but boy, oh, boy, have you got the space to do it in!
0:35:04 > 0:35:06# Boy, oh, boy
0:35:07 > 0:35:09# Boy, oh, boy
0:35:11 > 0:35:16'So, as with the ground floor, there's a double-aspect living room on the corner of the property
0:35:16 > 0:35:20'and a large bedroom at the front, plus a selection of rooms off the corridor.
0:35:20 > 0:35:24'But all the bedrooms are different shapes and sizes.
0:35:25 > 0:35:29'Outside, there's another downside to this lot, that went to auction
0:35:29 > 0:35:32'with a guide price of £45,000.'
0:35:33 > 0:35:37So, the internal space is a real delight.
0:35:37 > 0:35:40Sadly, you can't say the same for the outside.
0:35:41 > 0:35:44What, no garden? No, there isn't, actually.
0:35:44 > 0:35:47All there is is this little bit of concrete at the front here.
0:35:47 > 0:35:50Now, that needn't necessarily be a bad thing,
0:35:50 > 0:35:54because if you are looking to rent this place out, one thing tenants don't generally do
0:35:54 > 0:35:58is look after gardens, so the fact that there isn't one could actually be a bonus.
0:35:59 > 0:36:02'We asked a local estate agent for his thoughts
0:36:02 > 0:36:05'on what could be done to this property.
0:36:07 > 0:36:13There is a possibility to turn the house into one large family house
0:36:13 > 0:36:17or possibly to rent the rooms individually to students.
0:36:17 > 0:36:19But I see the more likely option
0:36:19 > 0:36:22to keep the property in its current layout
0:36:22 > 0:36:25and just get the return for two flats.
0:36:25 > 0:36:28'How much rental income could be earned here?'
0:36:28 > 0:36:31Once renovated, I would anticipate a rental return
0:36:31 > 0:36:36in the region of £400 per calendar month per flat,
0:36:36 > 0:36:38which would be a very good return.
0:36:38 > 0:36:44'What about the resale value if the property was sold on as one unit with both flats together?'
0:36:44 > 0:36:48I would anticipate for the resale value of the properties,
0:36:48 > 0:36:53the properties would be resold as one lot
0:36:53 > 0:36:59and I would anticipate the value in the region of £90,000.
0:37:00 > 0:37:06I know it doesn't look much, but this place could actually turn out to be a financial gem.
0:37:06 > 0:37:09Get the numbers right and the yields could be phenomenal.
0:37:09 > 0:37:13Let's see who spotted this one when it went under the hammer.
0:37:13 > 0:37:15We move on. Lot 43.
0:37:15 > 0:37:18A substantial double-fronted end-of-terrace house.
0:37:18 > 0:37:22Shall we say 40 to start it? 40 bid, standing left.
0:37:22 > 0:37:25£40,000. At 40.
0:37:25 > 0:37:2741. 41.
0:37:27 > 0:37:3142. 43. 44.
0:37:31 > 0:37:35'There were several interested bidders and we rejoin the auction at £49,000.'
0:37:35 > 0:37:3949,000, seated left. Another 500 anywhere else?
0:37:41 > 0:37:4449,500. 50? 50.
0:37:44 > 0:37:47Another 500? 50,500.
0:37:47 > 0:37:4951? 51.
0:37:49 > 0:37:51No?
0:37:51 > 0:37:54At £51,000, then, seated left. All done?
0:37:54 > 0:37:5751, then, first time.
0:37:57 > 0:38:0051 second time. You're together, aren't you?
0:38:00 > 0:38:05You're not? Well, I saw him first. 51. 52, sir?
0:38:05 > 0:38:0752.
0:38:07 > 0:38:0953.
0:38:10 > 0:38:1353 and a half. 54.
0:38:13 > 0:38:1554 and a half.
0:38:16 > 0:38:1955. 55 and a half.
0:38:19 > 0:38:22No? 55 and a half, seated left.
0:38:22 > 0:38:24Somebody want to come in at the back?
0:38:24 > 0:38:29At 55,500, seated left. Gentleman's bid, no mistake.
0:38:29 > 0:38:3155,500 for the first time.
0:38:31 > 0:38:3455,500 for the second time.
0:38:34 > 0:38:38- Third and final time at 55,500. - HAMMER BANGS
0:38:38 > 0:38:41You bought it, sir, well done. You've got to be quick, madam.
0:38:41 > 0:38:44'Unfortunately there's little time for hesitation in an auction.
0:38:44 > 0:38:49'Although it might be a bit unnerving sitting right next to a rival bidder.
0:38:49 > 0:38:53'But it looks like there weren't any hard feelings.'
0:38:53 > 0:38:56# You can come first after me
0:38:56 > 0:38:59# Don't you worry about the way it could be
0:39:01 > 0:39:04'It was local businessman Martin
0:39:04 > 0:39:08'who paid £55,500 for these two flats.
0:39:09 > 0:39:13'I met up with him and his wife, Kara, to find out more.'
0:39:15 > 0:39:21Martin, Kara, great to meet you both. Congratulations. Right then, you bought this place. Why?
0:39:21 > 0:39:24Well, we wanted another rental property, really.
0:39:24 > 0:39:28So that we could... This is already converted into two apartments.
0:39:28 > 0:39:33It's readily split, so minimal cost and hopefully a reasonable return.
0:39:33 > 0:39:36So this is something you do as a business or part-time?
0:39:36 > 0:39:40- Just in our spare time. Yes.- What do you do when you're not doing this?
0:39:40 > 0:39:46- Well, I work at my local hospital as an NHS manager.- Oh, great. - Yeah.- And what do you do, Martin?
0:39:46 > 0:39:49- I run a design and marketing company just around the corner. - OK, that's convenient.
0:39:49 > 0:39:52- Why this house particularly? - It's cheap.
0:39:54 > 0:40:01Secondly, its location. It's ideal for student lets because there's the university just down the road.
0:40:01 > 0:40:05As well as the location and the price, what was it about the house that you like, Kara?
0:40:05 > 0:40:09Well, I'd never actually seen it before Martin went to the auction and bought it,
0:40:09 > 0:40:12so I can't actually say I liked anything at that point.
0:40:12 > 0:40:15What did you think when you walked through the door?
0:40:15 > 0:40:20- It's better than the last one we bought because it's actually got walls.- What?
0:40:20 > 0:40:22- SHE LAUGHS - It's an improvement.
0:40:22 > 0:40:26- Tell me more!- Well, it had been used for all sorts of things.
0:40:26 > 0:40:31So the previous owner had knocked down the walls, taken out the ceilings.
0:40:31 > 0:40:34So, yeah, this one has at least got windows and doors and walls.
0:40:34 > 0:40:36'It's all relative, I guess.
0:40:36 > 0:40:41'Martin and Kara have obviously dealt with bigger projects than these two flats before.
0:40:41 > 0:40:46'And although they're property part-timers, they do seem quite busy,
0:40:46 > 0:40:48'with one house currently undergoing refurbishment
0:40:48 > 0:40:51'and another ready and up for sale.
0:40:51 > 0:40:55'This property is one they're hoping to hang on to and let out.
0:40:55 > 0:40:58'I wonder what their plans are here. Will they change the layout?'
0:40:58 > 0:41:04First of all, I'm not sure about this floor having three bedrooms or two.
0:41:04 > 0:41:08The third one is tiny, to say the least. If not, it's going to be a study.
0:41:08 > 0:41:13All the electrics and plumbing are already separated, so there's no cost with doing that.
0:41:13 > 0:41:17The upstairs kitchen, we'd like to keep the carcasses, possibly the doors, we're not sure yet. We'll see.
0:41:17 > 0:41:21The downstairs kitchen is going to be completely, you know, start again with it, really.
0:41:21 > 0:41:23Bathrooms, again, they may be all right.
0:41:23 > 0:41:27If they are, I'll keep them. If not, we'll change them.
0:41:27 > 0:41:30Have you worked out the numbers? The kind of returns you might expect?
0:41:30 > 0:41:33Spoke to one estate agent and they were sort of saying,
0:41:33 > 0:41:38"Oh, you might get £550 a month for one flat, and perhaps £450 for the other."
0:41:38 > 0:41:43So if we take a conservative 400, 425, what kind of returns would that generate?
0:41:43 > 0:41:46That would give you a yield of probably just under 15 percent.
0:41:46 > 0:41:47# Good enough
0:41:47 > 0:41:51# For you it's good enough
0:41:51 > 0:41:54'Well, a 15 percent yield is definitely very healthy.
0:41:54 > 0:41:58'Of course, the exact return will depend on what rent they achieve
0:41:58 > 0:42:01'and how much they have to spend to get everything done.
0:42:01 > 0:42:06'They intend to project-manage this refurbishment rather than do the work themselves.'
0:42:06 > 0:42:12- What is the budget for this, then? - Depending on what the bathrooms are like once we clean those up,
0:42:12 > 0:42:15- I anticipate £8,000 to £10,000. - What, for the whole thing?- Mm.
0:42:15 > 0:42:19- Including windows? - Well, windows is just glazing. The actual frames are fine.
0:42:19 > 0:42:22As long as you get the right size, they just pop straight back in.
0:42:22 > 0:42:25Now, when you see a property that has been so badly vandalised,
0:42:25 > 0:42:28that has got all the security things on the outside,
0:42:28 > 0:42:31it must throw up a few questions.
0:42:31 > 0:42:36I think we were concerned. It's got security shutters, you can't hide that, to keep it safe.
0:42:36 > 0:42:40The area is OK and it's going under regeneration.
0:42:40 > 0:42:44- So I think in the future, it will improve.- And what kind of timescale?
0:42:44 > 0:42:47We've got a property to finish at the moment which we're working on
0:42:47 > 0:42:52and perhaps put a bit of contingency in for things we may find. So perhaps up to three months.
0:42:52 > 0:42:55- Congratulations to both of you. - Thank you.- Good luck with it. - Thank you.
0:42:55 > 0:42:58- I look forward to seeing how you get on.- Yes.- Thank you.
0:42:58 > 0:43:01Well, it seems that out of this ugly duckling
0:43:01 > 0:43:06could grow a very beautiful swan. And a profitable one, too.
0:43:06 > 0:43:08Martin and Kara clearly have got the expertise,
0:43:08 > 0:43:11management and design to sort this place out.
0:43:11 > 0:43:14And it could, if it goes to plan,
0:43:14 > 0:43:17generate that magical 15 percent yield.
0:43:17 > 0:43:20Can't argue with that. See how they get on later in the show.
0:43:23 > 0:43:27"Time is money" is a much over-used phrase.
0:43:27 > 0:43:29But you know what? It's true.
0:43:29 > 0:43:31Yes, if your project runs over schedule
0:43:31 > 0:43:34then your bank balance can take a hit.
0:43:34 > 0:43:37So with that in mind, how have today's buyers been getting on?
0:43:39 > 0:43:42'We head back now to County Durham
0:43:42 > 0:43:44'and the former mining village of Murton.
0:43:44 > 0:43:48'It was here that we met Nicole, a photography student,
0:43:48 > 0:43:53'who'll be moving into this three-bedroom semidetached house with her boyfriend, Richard.
0:43:53 > 0:43:57'He works on his parents' turkey farm nearby.
0:43:57 > 0:44:01'It was bought for £56,000 as a family investment for the young couple to live in
0:44:01 > 0:44:04'until Richard's parents retired from farming.
0:44:04 > 0:44:07'It would then provide them with cash to build a new house.
0:44:07 > 0:44:12'But for now, it was down to Nicole and Richard to turn this into their new home.
0:44:12 > 0:44:14'While it was generally in a decent state,
0:44:14 > 0:44:19'the bare kitchen and a small bathroom did need some attention.'
0:44:19 > 0:44:22There is work to be done to it, but it's not loads.
0:44:22 > 0:44:26We can just move in straight away and just do things as we can afford it, really.
0:44:26 > 0:44:29Right. OK. So have you got a budget for what you're planning?
0:44:29 > 0:44:33- No. We haven't.- Right.- Just as we can afford things, we're going to do it.
0:44:33 > 0:44:39- So, at the moment, zero budget? - Well, budget of how much we can afford out of our bank accounts.
0:44:39 > 0:44:43'And that would apply to their timescale, as well, as they were planning to do
0:44:43 > 0:44:47'whatever was necessary as and when they could afford to do it.
0:44:47 > 0:44:50'When we returned, 19 months later,
0:44:50 > 0:44:55'we caught up with not just Nicole but also Richard and their dog, Holly.
0:44:55 > 0:44:59'So, had time and money helped them transform their new home?
0:45:02 > 0:45:07'Well, it's a good start. The living room is bright and fresh and a new fireplace has been added.
0:45:07 > 0:45:10'It's altogether far more homely.
0:45:12 > 0:45:17'At the back, the couple now have a functioning kitchen with units installed.
0:45:17 > 0:45:19'This is a far more practical space,
0:45:19 > 0:45:22'and while there's still lots to be done on the ground floor,
0:45:22 > 0:45:27'Nicole and Richard are pleased with what they've achieved so far.'
0:45:27 > 0:45:29We love it. Absolutely love it.
0:45:29 > 0:45:33It's been a bit of a challenge, but we've worked at it, haven't we?
0:45:33 > 0:45:37And we've just took our time, as and when we can do things, do them.
0:45:37 > 0:45:40- It's coming along nicely, isn't it? We got there in the end, yeah.- Yeah.
0:45:40 > 0:45:44'Using the wall at least saves buying a notice board.
0:45:44 > 0:45:49'Upstairs, and while the main bedroom still has the green carpet,
0:45:49 > 0:45:51'the room has been redecorated.
0:45:51 > 0:45:54'The small box room at the front has become an office.
0:45:55 > 0:45:59'While the formerly pine bedroom is now a storage space.
0:45:59 > 0:46:02'But it's been enlarged, and that's because Nicole and Richard
0:46:02 > 0:46:05'have dealt with that rather claustrophobic bathroom.'
0:46:06 > 0:46:10So if you can remember, we had the toilet and the bathroom completely separate.
0:46:10 > 0:46:16We've done a load of hard work to make it all into one bathroom. I'll show you how we've done it.
0:46:16 > 0:46:20So, as you can remember, we had the toilet as a horrible puzzle shape.
0:46:20 > 0:46:24Now, we've knocked down the wall, as you can see here, where it was.
0:46:24 > 0:46:28We've made it a nice long bathroom now. And I'll show you it.
0:46:30 > 0:46:32So, this is our lovely new bathroom.
0:46:32 > 0:46:36As you can see, we've knocked down the wall between the toilet and the original bathroom,
0:46:36 > 0:46:39which has made great use of the space.
0:46:39 > 0:46:44Richard's done a brilliant job of the tiling. Still bits to be finished. But it's fantastic. A great job.
0:46:44 > 0:46:48'Working to the tightest of budgets, in this case, none at all,
0:46:48 > 0:46:52'the couple have renovated the property as and when the money became available.
0:46:52 > 0:46:55'It was down to Richard to do the bulk of the heavy-duty jobs,
0:46:55 > 0:47:01'fitting that bathroom, laying the new flooring and installing the new kitchen.'
0:47:01 > 0:47:04We got the units second hand from a local man,
0:47:04 > 0:47:07which I've then re-decked out in new worktop,
0:47:07 > 0:47:09sink and tiled right round.
0:47:09 > 0:47:13For roundabout the £400 spent, I think it's money well spent
0:47:13 > 0:47:16and a very nice kitchen resulting.
0:47:16 > 0:47:19'Richard has certainly been on a very steep learning curve,
0:47:19 > 0:47:22'never having had any DIY experience before.
0:47:22 > 0:47:25'He tackled the tough labouring jobs himself,
0:47:25 > 0:47:29'but made sure he got certified tradesmen to do the skilled jobs.
0:47:29 > 0:47:32'Richard has put in many hours on this project
0:47:32 > 0:47:36'and had to do a bit of a balancing act with his full-time job on the farm,
0:47:36 > 0:47:39'which has recently branched into rearing lambs.
0:47:39 > 0:47:44'Nicole has also been busy studying for her final year in photography at university.
0:47:44 > 0:47:49'The new office upstairs is now the focus of a new venture for her.'
0:47:49 > 0:47:53I started my own little photography business up, which has been nice, you know,
0:47:53 > 0:47:57just doing it as and when I can. Obviously funds helping the house.
0:47:57 > 0:48:00So it's been good. Doing my own little photography business.
0:48:00 > 0:48:06I go to events and have props and people get dressed up and get instant prints. It's been really good.
0:48:06 > 0:48:08'Let's hope that business "develops" well.
0:48:08 > 0:48:13'Sorry, photography just "lens" itself to some bad puns.
0:48:14 > 0:48:19'Richard, Nicole and Holly still have some way to go before this house is exactly the way they want.
0:48:19 > 0:48:22'But fortunately, time isn't really an issue here.'
0:48:22 > 0:48:25The plan is still eventually to move up to the farmhouse.
0:48:25 > 0:48:29But that's, kind of, upon retirement of my mum and dad.
0:48:29 > 0:48:33Well, that could be five years, ten years, it's very much a case of play it by ear.
0:48:33 > 0:48:37- So I think we'll be staying here for a while, won't we?- Definitely.
0:48:39 > 0:48:42'So far they've spent about £3,000.
0:48:42 > 0:48:45'Add that to their purchase price of 56,000,
0:48:45 > 0:48:48'and they've invested £59,000 here.
0:48:48 > 0:48:53'We asked two estate agents what they thought of the improvements so far.'
0:48:53 > 0:48:56The improvements made to the property so far are good.
0:48:56 > 0:48:59The central heating has been replaced, which is a good point.
0:48:59 > 0:49:02The bathroom and kitchen have been refurbished.
0:49:02 > 0:49:04And it's certainly got the makings of a nice family home.
0:49:04 > 0:49:08I think they've done very, very well. These types of refurbishments
0:49:08 > 0:49:11do take a long period of time, certainly doing it themselves.
0:49:11 > 0:49:15And from what they've done so far in a short period of time, they've really cracked the knot.
0:49:15 > 0:49:19So at the end of the day, they're certainly onto very good things.
0:49:19 > 0:49:21'Will it turn out to be the investment they wanted?
0:49:21 > 0:49:26'Nicole, Richard and his parents have invested £59,000.
0:49:26 > 0:49:28'They've got time in hand for the value to grow,
0:49:28 > 0:49:31'but what price would the estate agents put on it if it was sold now?'
0:49:31 > 0:49:34If the owners were to price the property in its current condition,
0:49:34 > 0:49:37they should be looking at realising around about £70,000.
0:49:37 > 0:49:41If they were to finish the project, they should realistically be looking at £90,000.
0:49:41 > 0:49:45Currently, I would look to market it around about £65,000.
0:49:45 > 0:49:49With works completed, I would look to market it at between £85,000 and £90,000.
0:49:51 > 0:49:54'The couple reckon on another £2,000 to finish the property.
0:49:54 > 0:49:59'But for now, those valuations would mean a profit of between £6,000 and £11,000.
0:50:00 > 0:50:03'If that upper valuation stayed on track,
0:50:03 > 0:50:07'the top profit on a refurbishment could be a whopping £29,000,
0:50:07 > 0:50:09'minus tax and expenses, of course.'
0:50:11 > 0:50:13- That's fantastic. - I think that's brilliant!
0:50:13 > 0:50:16- Never expected it to have lifted that much.- No.
0:50:16 > 0:50:20That's fantastic on what we've spent on it, as well. That's absolutely brilliant.
0:50:20 > 0:50:24'It sounds like good news for Nicole, Richard and his parents.
0:50:24 > 0:50:28'But for the foreseeable future, this will be their home.
0:50:28 > 0:50:33'Despite their limited finances, the couple have at least got the renovation on the road.
0:50:33 > 0:50:38'And although the finish date is some way off, Nicole's already looking forward to the next phase.'
0:50:38 > 0:50:41I guess everyone's the same, they'll always have something to do.
0:50:41 > 0:50:46They'll get everything done and go, "Right, we'll change that bathroom," or, "We'll change the kitchen."
0:50:46 > 0:50:50Cos that's what you do, don't you? You want to keep changing it and making everything fresh and new.
0:50:50 > 0:50:53- Oh. - SHE LAUGHS
0:50:53 > 0:50:56- I thought once I was finished, I was finished. - HE LAUGHS
0:51:06 > 0:51:09'Back now to Shelton in Stoke-on-Trent
0:51:09 > 0:51:13'where, from the road, this property would deter many property developers.
0:51:13 > 0:51:16'Judging by the outside, the two flats were clearly in need of attention
0:51:16 > 0:51:19'and weren't any better on the inside.
0:51:19 > 0:51:24'But for Martin, who runs a design and marketing company round the corner,
0:51:24 > 0:51:28'and his wife, Kara, a manager at a local hospital,
0:51:28 > 0:51:33'it was worth every penny of the £55,500 they paid at auction.
0:51:33 > 0:51:37'The couple plan to refurbish the two flats and let them out.'
0:51:38 > 0:51:44- What is the budget for this, then? - Depending on what the bathrooms are like, once we clean those up,
0:51:44 > 0:51:47- I anticipate £8,000 to £10,000. - What, for the whole thing?- Mm.
0:51:47 > 0:51:52- Including windows? - Well, windows is just glazing. The actual frames are fine.
0:51:52 > 0:51:54As long as you get the right size, they just pop back in again.
0:51:54 > 0:51:58'The couple thought the work would take eight to ten weeks.
0:51:58 > 0:52:00'But it's now seven months later.
0:52:02 > 0:52:06'Martin, Kara and their dog, Ruby, are keen to show us the progress.
0:52:13 > 0:52:15'We'll start in the upstairs flat.
0:52:15 > 0:52:17'And just look at the change.
0:52:17 > 0:52:21'The couple have gone for a neutral colour scheme.'
0:52:21 > 0:52:26# Magnolia, you're sweet
0:52:28 > 0:52:32# You're the best I ever had
0:52:34 > 0:52:37'The work's taken longer than expected,
0:52:37 > 0:52:41'so how is Martin feeling now?'
0:52:41 > 0:52:47Relieved. It's not... it's not finished yet, but we're nearly there.
0:52:47 > 0:52:51What should've been a sprint has actually turned out to be a marathon.
0:52:53 > 0:52:55'Well, as any distance runner knows,
0:52:55 > 0:52:58'you can hit a wall after several miles.
0:52:58 > 0:53:01'But for Martin, there was a window early in the race.'
0:53:02 > 0:53:06We took all the shutters off, changed all the double-glazed units,
0:53:06 > 0:53:08and then three days later, they were all smashed.
0:53:08 > 0:53:13Then the door was kicked in and it was vandalised inside.
0:53:13 > 0:53:17So we repaired all that, and then a few months later, it was broken into again.
0:53:18 > 0:53:21'Ouch! Double-glazed and double trouble.
0:53:21 > 0:53:25'Undeterred, Martin and Kara raced on
0:53:25 > 0:53:28'with a new alarm system to protect the property
0:53:28 > 0:53:33'Downstairs, the entrance hall and double-aspect living room are now looking good,
0:53:33 > 0:53:36'as is the bathroom.
0:53:36 > 0:53:42'Little surprise that the kitchen down here had to be a complete refit.
0:53:42 > 0:53:45'The whole property needed rewiring.
0:53:45 > 0:53:47'The central heating's been sorted.
0:53:47 > 0:53:51'The damp's been treated in the walls, which have been replastered.
0:53:51 > 0:53:54'But this marathon's still got some distance to run.'
0:53:54 > 0:53:58Originally we hoped to have the project finished in eight to ten weeks.
0:53:58 > 0:54:00I think that was our original timescale.
0:54:00 > 0:54:05And then with it getting broken into and vandalised, clearly that put the timescales back.
0:54:05 > 0:54:09So it's taken probably around 10, 12 weeks.
0:54:09 > 0:54:13So we've probably got about another two or three weeks' work in the property.
0:54:13 > 0:54:17# Finish me off
0:54:17 > 0:54:20# Finish me off
0:54:20 > 0:54:22# And set me free
0:54:22 > 0:54:28'And they faced another problem, as the builder they initially employed to project-manage the refurbishment
0:54:28 > 0:54:30'left them halfway through.
0:54:30 > 0:54:33'So Martin took over a lot of the work.'
0:54:33 > 0:54:38With the builder leaving when he did, we had to employ tradesmen to come in.
0:54:38 > 0:54:43We had to pay them by the hour because a lot of tradesmen don't like coming halfway through a project.
0:54:43 > 0:54:47So, consequently, that's cost a lot more than what it originally should've done.
0:54:47 > 0:54:50'Oh, dear. Where else has money been spent?'
0:54:50 > 0:54:54The main expense is all the glazing. Two lots of glazing we had to put in.
0:54:54 > 0:54:57'Well, the budget's gone over a bit.
0:54:57 > 0:55:00'So, how much did all the work cost?'
0:55:00 > 0:55:05I originally anticipated about £8,000.
0:55:05 > 0:55:08That's what it should've cost. So we're now looking,
0:55:08 > 0:55:12probably to finish it, probably just over £12,000.
0:55:13 > 0:55:17'With the £55,500 Martin and Kara paid at auction,
0:55:17 > 0:55:22'that takes their total outlay to £67,500.'
0:55:22 > 0:55:25When we bought these, we wanted to rent these properties out.
0:55:25 > 0:55:29This is really our retirement plan, if you like,
0:55:29 > 0:55:31to make sure we've got some retirement income.
0:55:31 > 0:55:36So I think we still want to go ahead and rent the properties out.
0:55:37 > 0:55:40'To hear what rental income the two flats could generate,
0:55:40 > 0:55:43'we asked two local estate agents for their opinions.
0:55:43 > 0:55:48'How much do they think the refurbishments have increased the value here?'
0:55:49 > 0:55:51It's been finished to a modern and neutral standard,
0:55:51 > 0:55:54which should appeal to a wide range of buyers in the local area.
0:55:54 > 0:55:56It's come a long way from its initial starting point.
0:55:56 > 0:56:00The apartments are very clean, fresh and tidy.
0:56:00 > 0:56:04And it's basically what you would expect from a refurbished property
0:56:04 > 0:56:06possibly coming onto the rental market.
0:56:06 > 0:56:11I think the majority of flats, certainly within the local vicinity, do tend to be purpose-built,
0:56:11 > 0:56:13which means something like this, which is a conversion,
0:56:13 > 0:56:17does add a little bit of character, and there is a shortage of that locally.
0:56:17 > 0:56:22There's two bedrooms to both flats, which is also a good selling point or letting point.
0:56:22 > 0:56:24And they are in a convenient location.
0:56:26 > 0:56:28'Once both flats are finished,
0:56:28 > 0:56:32'how much do the experts think the properties could achieve on the resale market?
0:56:32 > 0:56:35'More than the £67,500 invested in them?'
0:56:37 > 0:56:39Selling the whole property as a unit, you'd look to sell for
0:56:39 > 0:56:41between £90,000 to £100,000.
0:56:41 > 0:56:46I would anticipate the resale value for the total property
0:56:46 > 0:56:49in the region of £100,000.
0:56:49 > 0:56:53'Those valuations would produce a profit of between £22,500 and £32,500,
0:56:53 > 0:56:56'before tax and expenses.
0:56:56 > 0:56:59'It sounds like all the hard work's paid off.'
0:57:00 > 0:57:06- I think that's really good news. - Yes, it's almost exactly what I thought it would be, actually.
0:57:06 > 0:57:11Yes, although the capital value is really irrelevant at the moment.
0:57:11 > 0:57:14- We're more interested in the rental values.- Yeah.
0:57:14 > 0:57:20I would anticipate a rental income in the region of £400 per calendar month per flat.
0:57:20 > 0:57:23Each flat would rent for in the region of £350 to £400 per calendar month.
0:57:23 > 0:57:27'If Martin and Kara successfully let both flats,
0:57:27 > 0:57:31'they're looking at a double-digit yield. Pretty useful for their pension pot.'
0:57:31 > 0:57:34- I think that's about what we thought, wasn't it?- Yes.
0:57:34 > 0:57:37That'll probably give us, ooh, what?
0:57:37 > 0:57:41Around about a 12 percent return, something like that, yeah.
0:57:41 > 0:57:45I think that's where we wanted to be, really, in terms of the property.
0:57:45 > 0:57:47So I think we're just going to finish them off now
0:57:47 > 0:57:50and get them on the market for rental as soon as possible, really.
0:57:53 > 0:57:57So there you go, you never know what stories you will hear on Homes Under The Hammer.
0:57:57 > 0:58:01So join us next time for tales of subsidence and success.
0:58:01 > 0:58:03- See you then.- Goodbye.- Goodbye.