0:00:01 > 0:00:04Hello. In tough economic times,
0:00:04 > 0:00:08it can be even harder to part with your hard-earned cash.
0:00:08 > 0:00:12even when it comes to buying property which used to be considered "as safe as houses"!
0:00:12 > 0:00:15Yes, it can be daunting at the best of times.
0:00:15 > 0:00:17But even more so now.
0:00:17 > 0:00:21Yes. But if you do your research and take a deep breath,
0:00:21 > 0:00:24you can still find a bargain buying your home under the hammer.
0:00:50 > 0:00:53One person's trash is another person's treasure, as they say,
0:00:53 > 0:00:56and that's certainly true of some of the properties at the auctions.
0:00:56 > 0:01:02Sometimes, it takes a bit of imagination to see the potential that lies beneath the dodgy decor.
0:01:02 > 0:01:07So here are the treasure trove of properties that we've unearthed for you today.
0:01:08 > 0:01:13In Basildon, Essex, there's a terraced house that might just grow on you.
0:01:13 > 0:01:17There's nothing like letting your garden come in to you!
0:01:18 > 0:01:23Whereas in Forfar, I see a lot that's a long way from perfection.
0:01:24 > 0:01:27I'm not sure I like the location, but let's take a look.
0:01:28 > 0:01:33And I saddle up my horse and ride in to good old Derby City
0:01:33 > 0:01:35to check out this little old homestead.
0:01:36 > 0:01:38Great place for a hoe-down and a barbecue!
0:01:40 > 0:01:43All these properties have been sold at auction.
0:01:43 > 0:01:46We'll find out who bought them and what they paid for them
0:01:46 > 0:01:48when they went under the hammer.
0:01:55 > 0:01:56Welcome to Basildon in Essex,
0:01:56 > 0:02:02created as a new town to accommodate the overspill of Londoners after the Second World War.
0:02:02 > 0:02:07Nowadays, over £1 billion of regeneration is planned here.
0:02:07 > 0:02:11It's also the birthplace of Denise van Outen, Alison Moyer
0:02:11 > 0:02:14and Carry On legend Joan Sims.
0:02:14 > 0:02:16Ooh, matron!
0:02:16 > 0:02:20Already I'm excited about the property I'm here to see.
0:02:20 > 0:02:23Why? Because I'm only a ten-minute walk to the town centre.
0:02:23 > 0:02:25So, gold star for the location,
0:02:25 > 0:02:29but the parking situation is a bit tricky
0:02:29 > 0:02:32as it's pedestrian access only to the front door.
0:02:32 > 0:02:34And that will always put some buyers off.
0:02:34 > 0:02:37Now, the house itself is here.
0:02:37 > 0:02:42It's got three bedrooms and had a guide price of £100,000.
0:02:42 > 0:02:44I'll have a look around.
0:02:46 > 0:02:48'Cut back the conifers, tidy up the garden
0:02:48 > 0:02:51'and you have a mid-terraced house as smart as its neighbours
0:02:51 > 0:02:54'looking out onto a safe space for the kids to play.'
0:02:56 > 0:03:01Ooh, good. I'm glad you walk into a hallway rather than straight into your lounge.
0:03:01 > 0:03:06Not so sure about the plastic wood-effect panelling on the wall.
0:03:06 > 0:03:11As you can see, this house does need a tremendous amount of updating.
0:03:11 > 0:03:14Bringing back to the 21st century.
0:03:14 > 0:03:16But the basics are here
0:03:16 > 0:03:17which is really good news.
0:03:17 > 0:03:21Two big windows, a very sunny space, which is great.
0:03:21 > 0:03:23Don't know about the artexing.
0:03:23 > 0:03:25We might have to think about getting rid of that
0:03:25 > 0:03:26along with this fireplace.
0:03:26 > 0:03:29I think something a lot more modern would work.
0:03:29 > 0:03:32You can see we don't have gas central heating in this house.
0:03:32 > 0:03:33Just storage heaters.
0:03:33 > 0:03:35So you'll probably want to upgrade that.
0:03:35 > 0:03:38This wall has obviously been taken out
0:03:38 > 0:03:40so you've got this very nice open plan area.
0:03:40 > 0:03:43Now, you've got a couple of options.
0:03:43 > 0:03:48You could, in the kitchen, think about potentially taking this wall down
0:03:48 > 0:03:52and then you'd have a nice big kitchen/dining space
0:03:52 > 0:03:54and you could then reinstate this wall here
0:03:54 > 0:03:57and have a little cosy lounge area.
0:03:57 > 0:03:58So lots of options.
0:03:58 > 0:04:01A lot to work with here. Needs some money spending on it,
0:04:01 > 0:04:05but it does have a nice feeling. Let's have a look at the garden.
0:04:07 > 0:04:10There's nothing like letting your garden come in to you!
0:04:10 > 0:04:13Bit of a wilderness!
0:04:13 > 0:04:17It's hard even to walk through this amount of overgrown weeds, debris
0:04:17 > 0:04:19and shabby sheds.
0:04:19 > 0:04:23Also, you may need to call in experts to evict some blackbirds
0:04:23 > 0:04:25who've taken up residence in the roof.
0:04:35 > 0:04:38At the end of the garden, you have this gate
0:04:38 > 0:04:43which I am hoping will lead me out onto parking or a garage or something
0:04:43 > 0:04:46to make up for the fact there's none out the front.
0:04:47 > 0:04:51No, you don't. You have this alleyway
0:04:51 > 0:04:54which, after a while,
0:04:54 > 0:04:56eventually...
0:04:58 > 0:05:00..sort of, nearly,
0:05:00 > 0:05:02but not quite yet...
0:05:02 > 0:05:04Ah, here we go.
0:05:04 > 0:05:06It ends in a parking area.
0:05:06 > 0:05:09Now, this is a sticking point for me.
0:05:09 > 0:05:12Imagine, it's the winter, you've done your weekly shop,
0:05:12 > 0:05:15the kids are hanging off you wanting their dinner, it's dark, it's raining,
0:05:15 > 0:05:19this access is going to be a pain.
0:05:19 > 0:05:20And quite frankly,
0:05:20 > 0:05:22I wouldn't want to do it.
0:05:25 > 0:05:27It's definitely a disadvantage.
0:05:27 > 0:05:29While not everybody has a car,
0:05:29 > 0:05:32even getting your shopping delivered might not be easy.
0:05:32 > 0:05:35Back to the property itself.
0:05:35 > 0:05:38Could things start looking up upstairs?
0:05:40 > 0:05:46Upstairs, there is a real eclectic mix of wallpapers, carpets.
0:05:46 > 0:05:48It certainly is a bit jazzy up here, but I love it.
0:05:48 > 0:05:52Because for starters, you could knock these two together
0:05:52 > 0:05:55to have a really spacious bathroom,
0:05:55 > 0:05:58you've got a nice landing, again, another bonus.
0:05:58 > 0:06:00Double bedroom there, a little single there
0:06:00 > 0:06:03and a really nice master bedroom here.
0:06:03 > 0:06:06There's enough room to get your king size bed in here if you want,
0:06:06 > 0:06:09little cabinets either side.
0:06:09 > 0:06:11It really is a great space up here.
0:06:11 > 0:06:17But one of the positives about not being able to drive your car right up to your property is this.
0:06:17 > 0:06:19Listen.
0:06:19 > 0:06:20SILENCE
0:06:20 > 0:06:22How peaceful is that?
0:06:22 > 0:06:24You can't hear anything.
0:06:24 > 0:06:28So you definitely know you're guaranteed a good night's sleep.
0:06:28 > 0:06:29Result!
0:06:36 > 0:06:39While there might be a welcome sound of silence,
0:06:39 > 0:06:41the carpet designs seem rather loud!
0:06:43 > 0:06:44The house has a lovely feel,
0:06:44 > 0:06:46but it's really dated
0:06:46 > 0:06:48so there's a lot of work to be done.
0:06:52 > 0:06:55What does a local estate agent think of the mid-terraced house,
0:06:55 > 0:06:57guided at 100,000?
0:06:57 > 0:06:59To bring the property up to scratch,
0:06:59 > 0:07:02you're going to need to spend in the region of ten to 15,000.
0:07:02 > 0:07:05A lot of that will be spent on installing gas central heating
0:07:05 > 0:07:09and updating some of the windows to double-glazing
0:07:09 > 0:07:11and a light refurb throughout the property.
0:07:11 > 0:07:15If that money was spent and the property brought up to a modern spec,
0:07:15 > 0:07:17what could it fetch on the resale market?
0:07:19 > 0:07:26Once renovated, this property could re-sell for in the region of 130 to £135,000.
0:07:26 > 0:07:28What would he predict for rental?
0:07:29 > 0:07:37I would anticipate the property renting for in the region of £750 to £800 per calendar month.
0:07:39 > 0:07:41I think you could do worse than buy in Basildon right now.
0:07:41 > 0:07:45Get a slice of the Essex action before the regeneration kicks in
0:07:45 > 0:07:48and you could be getting a really good deal.
0:07:48 > 0:07:50Let's see who went for it at the auction.
0:07:52 > 0:07:56A three-bed mid-terraced house. Must be worth 100.
0:07:56 > 0:07:58100 anywhere? 100,000.
0:07:58 > 0:08:00105 with you.
0:08:00 > 0:08:01110, sir?
0:08:03 > 0:08:06Looking for 110. Anywhere else?
0:08:06 > 0:08:08I'll take 106, if it helps.
0:08:08 > 0:08:11106 with you, sir.
0:08:11 > 0:08:12107.
0:08:12 > 0:08:13108.
0:08:13 > 0:08:15109.
0:08:15 > 0:08:16110.
0:08:16 > 0:08:17111.
0:08:17 > 0:08:19112.
0:08:19 > 0:08:20113.
0:08:20 > 0:08:22114. 115.
0:08:22 > 0:08:24116.
0:08:24 > 0:08:25117.
0:08:25 > 0:08:27118?
0:08:28 > 0:08:31117. First time, second time.
0:08:31 > 0:08:33Third and last time, if you're all done?
0:08:33 > 0:08:36Sold. 117.
0:08:37 > 0:08:42The hammer fell on a bid of 117,000 made by Ray,
0:08:42 > 0:08:44who was at the auction with his wife, Jane.
0:08:45 > 0:08:47She's a teacher, and may not have done the bidding,
0:08:47 > 0:08:50but will be completely in charge of this renovation.
0:09:01 > 0:09:03- Jane, congratulations.- Thank you.
0:09:03 > 0:09:06- You must be really excited.- Excited and nervous at the same time.
0:09:06 > 0:09:10- Yes.- What are you nervous about? - Taking on a project like this on my own.
0:09:10 > 0:09:16It's just nerve-wracking, being a woman and I'll be directing builders and things like that.
0:09:16 > 0:09:20- You can do it!- I can walk in a classroom and take command.
0:09:20 > 0:09:25That's not a problem. But walking in here and bossing people around, we'll see!
0:09:25 > 0:09:28Is this your first project? Have you ever done anything like this before?
0:09:28 > 0:09:30I haven't done anything like this before.
0:09:30 > 0:09:33We've just started on our own home
0:09:33 > 0:09:37and I've been tentatively project managing that, with the support of my husband.
0:09:37 > 0:09:39But he's told me this is mine.
0:09:39 > 0:09:42So you're going to have that and this going on at the same time?
0:09:42 > 0:09:44As well as teaching one day a week.
0:09:44 > 0:09:47- Crazy! Are you going to cope? - I'll manage. I will!
0:09:50 > 0:09:53'You certainly can't knock her "can do" attitude.
0:09:53 > 0:09:57She's going to be kept busy and learn to keep the workmen in line!
0:09:57 > 0:09:59She's already sorted on that front
0:09:59 > 0:10:01as she's assembled her team of builders.
0:10:03 > 0:10:05She's a Basildon girl, born and bred,
0:10:05 > 0:10:06so knows the area well.
0:10:08 > 0:10:12Jane and her husband Ray have already agreed that this will be a rental property.
0:10:12 > 0:10:15But when it comes to the budget...
0:10:15 > 0:10:19- Mine's 10,000.- OK. - My husband's is six.
0:10:19 > 0:10:21He said, "Don't go above six",
0:10:21 > 0:10:24but the bathroom, the toilet, they all need replacing
0:10:24 > 0:10:26and this will all get ripped out. I can do a lot of that myself.
0:10:26 > 0:10:30Doing a project on my own home, I've been ripping out walls
0:10:30 > 0:10:32so I can do that myself, hopefully.
0:10:32 > 0:10:36OK. And upstairs, you've got a really nice separate loo,
0:10:36 > 0:10:42bathroom, but it could be a fabulous much bigger bathroom with the toilet in the same space.
0:10:42 > 0:10:47Yes, we thought about that, but thinking about it, if we're doing it as a rental,
0:10:47 > 0:10:52it might not be a family. It might be two or three people renting together.
0:10:52 > 0:10:55To keep the bathroom and toilet separate is more of a seller.
0:10:58 > 0:11:02Jane's planning to get experts in to replace the storage heating and the windows,
0:11:02 > 0:11:06while she'll use the DIY skills she learned from renovating her own home.
0:11:06 > 0:11:11She's done the maths, and is keeping the downstairs layout as it is.
0:11:11 > 0:11:14So she's done her homework - just what you'd expect from a teacher!
0:11:16 > 0:11:18But is everything here completely rosy?
0:11:19 > 0:11:23Any big downsides to this property, that you can see?
0:11:23 > 0:11:25The garden!
0:11:25 > 0:11:29- Whoa! You open the back door and it's there!- Yeah.
0:11:29 > 0:11:31So that will take quite a lot.
0:11:31 > 0:11:35We've talked about that. It's a beautiful garden. Once you take that all back, it'll be lovely.
0:11:35 > 0:11:40But again, the rental side, people might not do the upkeep of that.
0:11:40 > 0:11:43So we've talked about taking that right back
0:11:43 > 0:11:46and maybe keeping just one or two nice plants that are in there.
0:11:46 > 0:11:51- So are we going to come back and see top of the class? Will we be giving you a gold star for this?- Yes!
0:11:51 > 0:11:56So if I was to ask you teaching the kids or property developing?
0:11:56 > 0:11:58Ask me in ten weeks' time!
0:11:59 > 0:12:01What do you think you're going to say?
0:12:01 > 0:12:05Teaching is my first love. It is my first love and I do miss it.
0:12:05 > 0:12:08So, it just... If the builders behave,
0:12:08 > 0:12:11then I might get into doing the teaching side of the builders!
0:12:11 > 0:12:14So ask me in ten weeks' time when we've finished!
0:12:14 > 0:12:17I can't wait to see how you do this and what you do.
0:12:17 > 0:12:20- Good luck with this renovation. Lovely to meet you.- Thank you.
0:12:20 > 0:12:22Once a teacher, now a property developer.
0:12:22 > 0:12:25This is a great rental machine for Jane
0:12:25 > 0:12:28but there will definitely be challenges for her to overcome.
0:12:28 > 0:12:32Will her hard work deserve an A star or an F?
0:12:32 > 0:12:36Join me later in the show to find out!
0:12:45 > 0:12:48Today, I'm on the east coast of Scotland
0:12:48 > 0:12:52just 15 miles from Dundee and 50 from Aberdeen
0:12:52 > 0:12:55in the former royal borough of Forfar.
0:12:55 > 0:12:57Forfar just oozes history.
0:12:57 > 0:13:00It was once the centre of the Kingdom of the Picts,
0:13:00 > 0:13:03the region's first settlers.
0:13:03 > 0:13:07But now the buildings pay homage to its more recent thriving textile industry
0:13:07 > 0:13:09and a rich agricultural heritage
0:13:09 > 0:13:11that's still as strong as ever.
0:13:13 > 0:13:17When I was a kid, I always used to watch the football results
0:13:17 > 0:13:20and I always used to hope that it end up with the result
0:13:20 > 0:13:24that was Forfar, five, and Fife, four!
0:13:24 > 0:13:27I'm not sure it ever happened!
0:13:29 > 0:13:31Ah, well, small things!
0:13:31 > 0:13:36This is the main town in Angus and holds all the county municipal buildings,
0:13:36 > 0:13:38featuring some stunning architecture.
0:13:39 > 0:13:43Down this corridor, though, is the property I'm here to see.
0:13:43 > 0:13:46It's a former salon and sort of beauty parlour,
0:13:46 > 0:13:49right underneath one of the hotels in the centre of town.
0:13:49 > 0:13:52Had a guide price of £32,000.
0:13:52 > 0:13:55I'm not sure I like the location, but let's take a look.
0:14:01 > 0:14:05The position of this property is hair-raising, and not in a good way.
0:14:05 > 0:14:08It's a bit on the dark side.
0:14:08 > 0:14:10But on the plus side, there is parking
0:14:10 > 0:14:13and there's access from the main street.
0:14:13 > 0:14:15The salon is underneath a hotel
0:14:15 > 0:14:17which has been closed for some time.
0:14:19 > 0:14:21It's certainly an intriguing location,
0:14:21 > 0:14:23but apparently, in its day,
0:14:23 > 0:14:25it was a very popular hairdresser's.
0:14:25 > 0:14:30And I don't think it's changed much in quite a few years.
0:14:30 > 0:14:32One big space, primarily.
0:14:32 > 0:14:35You've got your own shower built in there, not necessarily what you'd expect.
0:14:35 > 0:14:37But this very interesting roof line
0:14:37 > 0:14:39with the arch there.
0:14:39 > 0:14:42Then some of the original hairdressing paraphernalia.
0:14:42 > 0:14:46Place for hair to be washed, these things for drying.
0:14:46 > 0:14:48Even though, well...
0:14:48 > 0:14:52What would you do with this place? I really don't know.
0:14:52 > 0:14:55It's going to take some imagination to figure that one out.
0:15:03 > 0:15:07So, an unusual lot, and a rather compact one.
0:15:07 > 0:15:11Not much more than a single room, a shower, toilet and some parking space.
0:15:13 > 0:15:17We asked an estate agent what he imagined it could be used for.
0:15:19 > 0:15:24Options for this property would be hairdressing, beauty salon,
0:15:24 > 0:15:27possibly office accommodation as well.
0:15:27 > 0:15:30This is obviously always going to be a business of some sort.
0:15:30 > 0:15:34But its location doesn't exactly offer visibility on the high street,
0:15:34 > 0:15:38so what disadvantages are there to watch out for?
0:15:40 > 0:15:42Hard to market yourself
0:15:42 > 0:15:47and also you wouldn't have control of the fabric
0:15:47 > 0:15:49as it's underneath a hotel which is closed.
0:15:49 > 0:15:51That is a good point.
0:15:51 > 0:15:55Who would look after the building? And how are the costs shared?
0:15:55 > 0:15:58What would happen if the building fell into disrepair?
0:15:58 > 0:16:01That all needs to be looked into,
0:16:01 > 0:16:06and I really want to work out what kind of business could do well in such an awkward spot?
0:16:06 > 0:16:08Could it possibly be a wise investment?
0:16:08 > 0:16:10What could it let for?
0:16:10 > 0:16:13The rateable value for this property is 5,400 per annum.
0:16:13 > 0:16:18It is due a discount from the local council due to its off-street location
0:16:18 > 0:16:22and the fact it has no window frontage onto the main street.
0:16:22 > 0:16:25And, if renovated, what could it sell for?
0:16:25 > 0:16:30Once renovated, the property's worth in the region of £45,000.
0:16:30 > 0:16:32So, a bit of an unusual one, this one.
0:16:32 > 0:16:35It is going to require a lot of imagination.
0:16:35 > 0:16:38But for that £32,000 guide price,
0:16:38 > 0:16:39it could just be worth a punt.
0:16:39 > 0:16:42Let's see who fancied it when it went under the hammer.
0:16:48 > 0:16:51This is a former hair and beauty salon.
0:16:51 > 0:16:54What are we going to say for this? Vacant possession.
0:16:54 > 0:16:5525 to get me started?
0:16:57 > 0:16:5825,000. Thank you, sir. Sitting down.
0:16:58 > 0:17:0125. Have I got 26, anywhere?
0:17:01 > 0:17:0326 at the back. 26. 27.
0:17:03 > 0:17:0528. 29.
0:17:05 > 0:17:0730? 29 and a half?
0:17:07 > 0:17:1029 and a half. 30? 30.
0:17:10 > 0:17:1230 and a half? You're out?
0:17:12 > 0:17:15Right. At £30,000. Are you definitely out?
0:17:15 > 0:17:17£30,000. Gentleman sitting on the aisle.
0:17:17 > 0:17:21Any other bids? Looking for 30,500.
0:17:21 > 0:17:23We'll sell at 30,000. Going once,
0:17:23 > 0:17:27twice, third and final time.
0:17:27 > 0:17:30Gentleman sitting on the aisle.
0:17:36 > 0:17:37So, for £30,000,
0:17:37 > 0:17:41the successful bidder for the former salon in Forfar
0:17:41 > 0:17:42was local man Alan.
0:17:44 > 0:17:48He's the managing director of a roof truss company,
0:17:48 > 0:17:51but has recently diversified into other business ventures.
0:17:51 > 0:17:54The first of these was buying a local bar,
0:17:54 > 0:17:59and now he can add this underground business premises to his portfolio.
0:18:00 > 0:18:02- Alan, congratulations!- Thank you.
0:18:02 > 0:18:05Tell me what you're going to do to this place.
0:18:05 > 0:18:08I'm going to turn it into a barber's shop.
0:18:08 > 0:18:12Right. There are other buildings possibly in Forfar,
0:18:12 > 0:18:16- that would be less problematic than this one.- Yes.
0:18:16 > 0:18:18This is fairly iconic.
0:18:18 > 0:18:20Round about the early '80s,
0:18:20 > 0:18:23I came in here and this was really happening for a small place like Forfar.
0:18:23 > 0:18:25This was a hub of hairdressing!
0:18:25 > 0:18:28Unfortunately, nothing's changed in here since then.
0:18:28 > 0:18:33- Good.- And it certainly struck a chord with me.
0:18:33 > 0:18:38And I think that that memory, it's quite quirky being up the close
0:18:38 > 0:18:41and the shape of it, the roof. Everything's quite quirky about it.
0:18:41 > 0:18:44I think if we add the class and the quality of the fittings,
0:18:44 > 0:18:48to that, and the right staff, we'll have a winner.
0:18:55 > 0:18:58'A-ha, so a little nostalgia playing a part here for Alan.
0:18:58 > 0:19:02'But I don't think this is a "heart over hair" decision.
0:19:02 > 0:19:06'He's got a clear plan for how he wants to revive this place
0:19:06 > 0:19:10'and make it as good, if not better, than it was in its heyday.
0:19:10 > 0:19:13'Or should that be "hair-day"?!'
0:19:13 > 0:19:15So tell me exactly what you're going to do to it.
0:19:15 > 0:19:20The first thing we'll do is lay the reclaimed flooring.
0:19:20 > 0:19:21It's Canadian white oak.
0:19:21 > 0:19:23- Canadian white oak?!- Yeah.
0:19:23 > 0:19:28- It was lifted from Clydebank High School when the gym hall was demolished.- Ah!
0:19:28 > 0:19:34We've bought that. Then we'll go looking to source pieces such as the actual barbers' chairs.
0:19:34 > 0:19:36Right. New or second-hand?
0:19:36 > 0:19:40- No, I want the authentic old ones. - Really, really old ones?
0:19:40 > 0:19:45- Really, really old ones, yes.- The vinyl or leather...- The leather and chrome. The real old ones, yeah.
0:19:45 > 0:19:49This back wall here, I think we'll probably decorate
0:19:49 > 0:19:53with some punk records or punk posters and paraphernalia.
0:19:53 > 0:19:58And how many stations, as in where people can sit and have their hair cut?
0:19:58 > 0:20:01We're planning on three men's ones and one child one.
0:20:01 > 0:20:03What about somebody who can cut hair?
0:20:03 > 0:20:04Yeah, we need to find that!
0:20:04 > 0:20:07We need to find staff, yes.
0:20:07 > 0:20:11But we're at the start of the project, so I don't think we'll have any problem.
0:20:11 > 0:20:13Will the idea be that you rent it out to somebody,
0:20:13 > 0:20:15or just employ a hairdresser?
0:20:15 > 0:20:21No, we'll find a manager, a real ganger. Someone that'll come in and operate the place.
0:20:21 > 0:20:24We'll incentivise them and leave them to run it.
0:20:24 > 0:20:27'With his main business being a roofing firm,
0:20:27 > 0:20:31'Alan hopes that, like his other business venture, the bar,
0:20:31 > 0:20:34'he can set the hairdressing salon up in such a way
0:20:34 > 0:20:36'that it runs itself.
0:20:36 > 0:20:39'Once he's made and paid for the changes, that is.'
0:20:39 > 0:20:41What's the budget for sorting it out?
0:20:41 > 0:20:46The bar started off and we sailed to almost double budget
0:20:46 > 0:20:48- within a few months. - You doubled the budget?
0:20:48 > 0:20:52- What was the original budget?- At the bar, the original budget was 50,000.
0:20:52 > 0:20:53- 50. And you spent 100?!- Yes.
0:20:53 > 0:20:55I just got carried away!
0:20:55 > 0:21:00So again, the budget for here I probably would have started at 20,000,
0:21:00 > 0:21:03but I'm going to be sensible and go for 40,000.
0:21:03 > 0:21:06- So do you think you might spend 80? - No!
0:21:06 > 0:21:08Definitely not, no!
0:21:08 > 0:21:11- I'm reasonably confident. - You can do it for 40.
0:21:11 > 0:21:14- And what timescale?- I'll start in about two months' time
0:21:14 > 0:21:17and take approximately 12 to 15 weeks to do it, start to finish.
0:21:17 > 0:21:21- Right. It'll be open for business. - Open for business, yes.
0:21:21 > 0:21:24- Is there much money in hairdressing? - I don't know.
0:21:24 > 0:21:26What do you mean?! Now, look, no, no, no!
0:21:26 > 0:21:28That's the wrong answer!
0:21:28 > 0:21:32- What do you mean you don't know?!- I genuinely...- It's a business!- Yeah.
0:21:32 > 0:21:36You go to all this trouble and you don't know whether or not it can make you money?!
0:21:36 > 0:21:38No. But I'm confident it will.
0:21:38 > 0:21:41I did a business plan.
0:21:41 > 0:21:45I have no experience of hairdressing.
0:21:45 > 0:21:48Conversely, I had no experience of the bar industry or the bar trade.
0:21:48 > 0:21:54But I was able to take some guesses and I look to have been reasonably successful.
0:21:56 > 0:22:00Well, there's enough successful hairdressers around. There must be money in it.
0:22:00 > 0:22:03So what's the next step? What are you going to turn your mind to next?
0:22:03 > 0:22:07I've no idea. I'm sure the opportunity will present itself.
0:22:07 > 0:22:11- Restaurant, perhaps?- It's possible, yes. Definitely possible.
0:22:11 > 0:22:13But this was a complete curve ball, so it could be anything!
0:22:13 > 0:22:18- It could be anything, yes.- Alan, I really admire what you're trying to achieve here.
0:22:18 > 0:22:20- Good luck.- No problem.- I look forward to seeing how you get on.
0:22:22 > 0:22:25Well, there you go. Fantastic story.
0:22:25 > 0:22:30Alan with some incredible plans for rejuvenating the salon.
0:22:30 > 0:22:33You can find out how he gets on later in the show.
0:22:36 > 0:22:39'Coming up, this house in Derby seems...'
0:22:39 > 0:22:43A pretty good blank canvas on which to practise your art of being a property investor.
0:22:44 > 0:22:50'Back in Forfar, we find out if Alan's business is a cut above the rest.'
0:22:50 > 0:22:54It's a very bespoke project, a very bespoke product.
0:22:56 > 0:22:58But first, in Basildon, Essex,
0:22:58 > 0:23:00has Jane done all her homework?
0:23:00 > 0:23:04Throughout this whole renovation, I've laboured on every trade.
0:23:08 > 0:23:13Back to Basildon, where earlier, I met primary teacher and aspiring property developer Jane.
0:23:13 > 0:23:18She and her husband Ray purchased this three-bed mid-terrace house at an auction
0:23:18 > 0:23:21for 117,000.
0:23:21 > 0:23:24It was going to be Jane's to project manage
0:23:24 > 0:23:26once they'd decided a budget.
0:23:27 > 0:23:31- Mine's 10,000.- OK. - My husband's is six.
0:23:31 > 0:23:36He said, "Don't go above six", but the bathroom, the toilet, all need replacing.
0:23:36 > 0:23:39This will all get ripped out. I can do a lot of that myself.
0:23:39 > 0:23:44Doing a project on my own home, I've been ripping out walls. So I can do that myself.
0:23:44 > 0:23:45Hopefully!
0:23:45 > 0:23:48And here's also hoping
0:23:48 > 0:23:50that they managed to decide before Jane got cracking.
0:23:50 > 0:23:54More set in stone was the timescale, which was ten weeks.
0:23:54 > 0:23:59So guess what? We're back, ten weeks to the day since I first met Jane
0:23:59 > 0:24:01to see how she'd tackled this shabby place
0:24:01 > 0:24:04with overgrown gardens front and back.
0:24:15 > 0:24:17Unbelievable as it may seem,
0:24:17 > 0:24:21this is the same garden we saw just ten weeks ago.
0:24:21 > 0:24:24And the front's been transformed, too, as Jane explains.
0:24:24 > 0:24:28We completely cleared the whole of outside to begin with
0:24:28 > 0:24:32because we had big tall conifers that closed the house in, made it very dark.
0:24:32 > 0:24:36We had the sleepers put in and pea shingle to fill
0:24:36 > 0:24:38so that whoever decides to rent
0:24:38 > 0:24:40can put their pots on to put colour if they want,
0:24:40 > 0:24:42otherwise it's low maintenance.
0:24:42 > 0:24:44The turf I did myself. I'm very proud of it.
0:24:44 > 0:24:47The groundworkers showed me how to do it in the back garden,
0:24:47 > 0:24:49and I decided to attempt it myself in the front.
0:24:49 > 0:24:51I'm very pleased with myself.
0:24:51 > 0:24:53And so she should be.
0:24:53 > 0:24:56This looks so much more welcoming than before.
0:24:56 > 0:25:00I think property renovation is a lot more fun when you learn new skills
0:25:00 > 0:25:02and you get your hands dirty.
0:25:03 > 0:25:05So, has it been more of the same on the inside?
0:25:31 > 0:25:33Not a single room has remained untouched.
0:25:33 > 0:25:38And Jane's made a drab and dated interior bright, light and fresh.
0:25:38 > 0:25:42But how involved was she with the work done here?
0:25:43 > 0:25:46I've been more than hands on throughout this whole renovation.
0:25:46 > 0:25:48I've laboured on every trade.
0:25:48 > 0:25:50I've helped the window fitter,
0:25:50 > 0:25:52I helped the scaffolders,
0:25:52 > 0:25:55I didn't get to help the electrician, but I was part of the planning
0:25:55 > 0:25:58for where sockets would go and the different alarms that we would need to have.
0:25:58 > 0:26:02He was really helpful for the regulations that we needed to stick to.
0:26:02 > 0:26:04So, yes, lots of labouring.
0:26:05 > 0:26:08But for Jane, this was also a labour of love
0:26:08 > 0:26:11as her first step into property renovation.
0:26:11 > 0:26:14And it sounds like her previous fears of managing the workmen
0:26:14 > 0:26:16have been laid to rest.
0:26:18 > 0:26:22Controlling and managing the builders wasn't as hard as I thought it would be.
0:26:22 > 0:26:25It was more understanding a lot of what they were talking about
0:26:25 > 0:26:28and understanding the technical terms that they use.
0:26:28 > 0:26:32I quite enjoyed going into school one day a week
0:26:32 > 0:26:34so I understood what the adults were talking about
0:26:34 > 0:26:36because this just wasn't my world.
0:26:36 > 0:26:39But I got there in the end. I've learned to write everything down.
0:26:39 > 0:26:41Everything that they said I wrote down
0:26:41 > 0:26:43so that if there were any discrepancies,
0:26:43 > 0:26:47and I didn't understand, I could walk into a shop and say, "That's what my builder's asked for."
0:26:47 > 0:26:49So, yeah, it was OK.
0:26:49 > 0:26:53So this primary teacher has learned lots of new lessons.
0:26:53 > 0:26:56But did she stick to her timetable
0:26:56 > 0:26:58and how was she with her arithmetic?
0:26:59 > 0:27:05Our timescale, there was my husband, Ray, wanted me to get it done in six weeks.
0:27:05 > 0:27:08I said that was ridiculous. I said ten weeks.
0:27:08 > 0:27:11And we came up around nine weeks.
0:27:11 > 0:27:14I think this is the tenth week now and it's finished, so...
0:27:14 > 0:27:16We kept to our timescale.
0:27:16 > 0:27:21Our budget, we just worked it out yesterday,
0:27:21 > 0:27:23and that comes to about 12 and a half.
0:27:23 > 0:27:2612,500. So we did go over budget,
0:27:26 > 0:27:32but I think there's a lot that we've bought, a lot of tools and resources
0:27:32 > 0:27:35that we've bought and will work on our next project.
0:27:35 > 0:27:38So although we did go over budget, some things we can re-use again.
0:27:38 > 0:27:41Well, a little over is nothing to be ashamed of.
0:27:41 > 0:27:45Always bear in mind that you often spend more on your first project.
0:27:45 > 0:27:51Like Jane, you may spend more, but ideally on things you'll use over and over again.
0:27:51 > 0:27:53Gold star!
0:27:56 > 0:28:00We still intend to rent. It would be nice to know how much it would go for a re-sale
0:28:00 > 0:28:02if we decided to sell it.
0:28:02 > 0:28:06But we've now got tenants and we're in the middle of sorting out a tenancy agreement.
0:28:06 > 0:28:08So it's rented!
0:28:09 > 0:28:10So more good news!
0:28:10 > 0:28:13They've already got tenants in the offing.
0:28:13 > 0:28:15Jane won't need to wait very long
0:28:15 > 0:28:18to find out how much the property could sell for,
0:28:18 > 0:28:22as we've asked two local experts to take a look around.
0:28:27 > 0:28:30I'm very impressed with the refurbishment of the property.
0:28:30 > 0:28:33I particularly like the front and rear gardens.
0:28:33 > 0:28:36They're much improved from the first visit.
0:28:36 > 0:28:40Also, we particularly like the kitchen and bathroom.
0:28:40 > 0:28:43Having looked round the property, it views very well.
0:28:43 > 0:28:45It's very well presented throughout
0:28:45 > 0:28:47and has been finished to a good standard.
0:28:47 > 0:28:52Top marks so far, then. But what about those finances?
0:28:52 > 0:28:55The purchase price was 117,000.
0:28:55 > 0:28:58Added to the £12,500 spend on the work,
0:28:58 > 0:29:03that's a total outlay of £129,500.
0:29:03 > 0:29:06Could Jane make a profit if she were to consider selling?
0:29:06 > 0:29:09With regard to the resale value of this property,
0:29:09 > 0:29:14we believe it would sell in the current market at £140,000
0:29:14 > 0:29:16to £145,000.
0:29:16 > 0:29:22The property resale, I believe to be between 145 and £150,000.
0:29:22 > 0:29:24I'm pleased. Yeah, that is good.
0:29:24 > 0:29:27We thought round about 140 to 145.
0:29:27 > 0:29:30Obviously any more would be a bonus.
0:29:30 > 0:29:33So yeah, that's good. Yeah. But I'm not selling!
0:29:35 > 0:29:41Nope. Despite a potential pre-tax profit of 10,500 to £20,500,
0:29:41 > 0:29:43Jane is planning on letting
0:29:43 > 0:29:45and already has her tenants lined up.
0:29:45 > 0:29:49What could she charge per calendar month?
0:29:49 > 0:29:56We believe that this property would rent for approximately £825 per calendar month
0:29:56 > 0:30:01to £850 per calendar month, based on recent rentals in this area.
0:30:01 > 0:30:05This property could rent for £875 per calendar month.
0:30:05 > 0:30:07That's good. Yeah. Yeah.
0:30:07 > 0:30:11We have already got tenants lined up for 850.
0:30:11 > 0:30:14So that's in the middle. I'm pleased with that. That's good.
0:30:14 > 0:30:22A rental income of £850 per calendar month would mean an annual rental yield above seven per cent.
0:30:22 > 0:30:26I'd say this project has certainly been a success for Jane.
0:30:26 > 0:30:28But the big question still remains,
0:30:28 > 0:30:31would she give up teaching for property developing?
0:30:32 > 0:30:35I think I would still carry on with the teaching.
0:30:35 > 0:30:38Property development now has to be my main thing. It's my main income.
0:30:38 > 0:30:41But I would still keep my hand in with teaching.
0:30:48 > 0:30:50Welcome to Wilmorton in Derby,
0:30:50 > 0:30:54a well-established suburb 15 minutes walk from the city centre
0:30:54 > 0:30:59and close to Pride Park, home to Derby County Football Club.
0:31:00 > 0:31:06Like many places, the property market in Wilmorton has been a bit sticky in recent times.
0:31:06 > 0:31:09So there are bargains to be had
0:31:09 > 0:31:12if you're an investor or maybe a first time buyer looking for a home.
0:31:12 > 0:31:14Here's a perfect example.
0:31:14 > 0:31:18Two-bedroomed terrace. Had a guide price of £60,000-plus.
0:31:18 > 0:31:20Let's take a look.
0:31:20 > 0:31:24So, is this classic Derby terraced property design type A,
0:31:24 > 0:31:27or classic Derby terraced property design type B?
0:31:27 > 0:31:29Well, let's see!
0:31:29 > 0:31:33Straight off the pavement into the lounge.
0:31:33 > 0:31:36A fireplace which has largely been left.
0:31:36 > 0:31:42You could open that up and create a bit of a feature in here.
0:31:42 > 0:31:44The floorboards, some a bit creaky,
0:31:44 > 0:31:46but they would be nice stripped back.
0:31:46 > 0:31:48It is a fairly standard design.
0:31:48 > 0:31:53A nice additional bonus is a cellar down there, which is good.
0:31:53 > 0:31:57Into your rear sitting room area. It's a two-up, two-down, which has been extended.
0:31:57 > 0:32:01Through the back here into your kitchen.
0:32:01 > 0:32:04Probably built as some kind of extension at some stage over the years.
0:32:04 > 0:32:11It's a bit tight. It's a bit - rattle, rattle - clearly in need of some renovation.
0:32:11 > 0:32:14But the good news is, there isn't a toilet down here
0:32:14 > 0:32:17so it is classic Derby terraced property design type B.
0:32:17 > 0:32:20Good news! The toilet's upstairs!
0:32:28 > 0:32:30So, the property may not be full of surprises,
0:32:30 > 0:32:34but that cellar downstairs is a bonus for additional storage.
0:32:34 > 0:32:38So, so far, so good! Onwards and upwards.
0:32:43 > 0:32:46This property might not set your pulse racing
0:32:46 > 0:32:50or score particularly highly on an excitement scale of one to ten,
0:32:50 > 0:32:52but it has a lot going for it,
0:32:52 > 0:32:55especially if you're starting out in your property developing career.
0:32:55 > 0:33:00Cos you pretty much know what you're getting.
0:33:00 > 0:33:03That "type B", as I said, good news,
0:33:03 > 0:33:07there's a bathroom there at the end. That's definitely nice to have.
0:33:07 > 0:33:11Your first bedroom there and through to the front of the property where your second bedroom is.
0:33:11 > 0:33:14As I said, you kind of know what you're dealing with here.
0:33:14 > 0:33:17I think for a first-timer, that's pretty good.
0:33:17 > 0:33:21Your costs, hopefully, can be kept fairly low
0:33:21 > 0:33:24and also when it comes to working out budgets,
0:33:24 > 0:33:28there's a lot of comparables, so people will be able to give you realistic quotes.
0:33:28 > 0:33:33So, all in all, there's very few uncertainties, which is nice to know.
0:33:33 > 0:33:36In terms of the layout, you don't need to change anything.
0:33:36 > 0:33:38A few damp issues underneath windows.
0:33:38 > 0:33:40Don't worry about that, I think it's largely condensation.
0:33:40 > 0:33:43All in all, it's a pretty good blank canvas
0:33:43 > 0:33:47on which to practise your art of being a property investor.
0:33:47 > 0:33:50Up here does need to be completely redecorated.
0:33:50 > 0:33:54And I think a new bathroom suite would definitely be a good call.
0:33:54 > 0:33:57With this being a fairly standard row of terraced properties,
0:33:57 > 0:34:01the chances are that the neighbours have done similar refurbishments,
0:34:01 > 0:34:05so you could get recommendations for reliable local tradesmen.
0:34:05 > 0:34:09After all, the last thing you want to end up with is cowboys!
0:34:17 > 0:34:20HORSES NEIGH IN DISTANCE
0:34:21 > 0:34:23Ah!
0:34:24 > 0:34:29No, I'm not staring out across the prairie lands at my herd.
0:34:29 > 0:34:30I'm in the back yard.
0:34:30 > 0:34:34And look at this fantastic construction that somebody's built.
0:34:34 > 0:34:37HE CHUCKLES
0:34:37 > 0:34:38I love it!
0:34:38 > 0:34:42Actually, though, bizarre though it is,
0:34:42 > 0:34:44a great place for a hoe-down and a barbecue!
0:34:44 > 0:34:47It's actually quite a useful space!
0:34:47 > 0:34:50Through here, it's a bit dark,
0:34:50 > 0:34:53but again it's a useful sort of workshop area.
0:34:53 > 0:34:56And quite seriously, a real bonus to the property,
0:34:56 > 0:34:59out the back here, you've got your own parking space.
0:34:59 > 0:35:01Good news, all round!
0:35:01 > 0:35:04Oh, yeah, here at the OK Corral!
0:35:04 > 0:35:09Well, if you do want to live saloon-style, this is perfect!
0:35:09 > 0:35:11But I find it rather odd
0:35:11 > 0:35:13that the back door was blocked up.
0:35:13 > 0:35:15Then you've just got a few concrete slabs
0:35:15 > 0:35:17and the dual-purpose wooden structure
0:35:17 > 0:35:19taking up your whole back yard.
0:35:19 > 0:35:22Perhaps I've just seen too many back gardens with grass in my time
0:35:22 > 0:35:25and need to open my mind!
0:35:25 > 0:35:28Let's ask a local property expert.
0:35:28 > 0:35:32Does he reckon that this place, guided at 60,000,
0:35:32 > 0:35:34could be a perfect home on the range?
0:35:36 > 0:35:38My overall opinion of this property -
0:35:38 > 0:35:41externally, it's in reasonably OK order.
0:35:41 > 0:35:45Internally, it's in need of full refurbishment,
0:35:45 > 0:35:50a new kitchen, bathroom, general decor, cosmetic improvement.
0:35:50 > 0:35:54He thinks the timber structure out back should be given the heave-ho
0:35:54 > 0:35:57but could the financial returns be gung-ho?
0:35:57 > 0:35:59First up, if sold on.
0:36:00 > 0:36:03I feel the resale value when refurbished
0:36:03 > 0:36:06is likely to achieve in the region of £80,000.
0:36:06 > 0:36:10How about rental? Could that be real good?
0:36:10 > 0:36:11For the rental market,
0:36:11 > 0:36:16I feel it's likely to achieve £425 per calendar month.
0:36:16 > 0:36:21Well, no great surprises with this one, I don't think.
0:36:21 > 0:36:26A great little opportunity for someone. Let's see who spotted it when it went under the hammer.
0:36:29 > 0:36:34Lot six. A two-bedroomed terraced house, mostly double-glazed.
0:36:34 > 0:36:35Gas centrally-heated.
0:36:35 > 0:36:39Scope for a bit more upgrading and improvement.
0:36:39 > 0:36:41Who's got 58 for it?
0:36:41 > 0:36:4358,000 here, thank you.
0:36:43 > 0:36:44At £58,000.
0:36:44 > 0:36:47Starter's bid at 58. 59 I'm looking for.
0:36:47 > 0:36:50At 58. 59 is bid.
0:36:50 > 0:36:5260. 61.
0:36:52 > 0:36:5362.
0:36:53 > 0:36:5563.
0:36:56 > 0:36:5764.
0:36:57 > 0:36:5964,000.
0:36:59 > 0:37:0065?
0:37:01 > 0:37:0364,000 here. 65.
0:37:04 > 0:37:0566.
0:37:05 > 0:37:07500? 66,500.
0:37:07 > 0:37:0967.
0:37:09 > 0:37:1167,500.
0:37:11 > 0:37:1268.
0:37:13 > 0:37:15At 68,000.
0:37:15 > 0:37:16500 elsewhere?
0:37:17 > 0:37:20It's in the market. We're selling it, ladies and gentlemen. Bids are all yours.
0:37:20 > 0:37:23At £68,000 for the first time.
0:37:23 > 0:37:26Second time. Third opportunity.
0:37:26 > 0:37:29All done? Sold here at 68,000.
0:37:29 > 0:37:30Thank you.
0:37:30 > 0:37:35That successful £68,000 bid was placed by a pair of familiar faces.
0:37:36 > 0:37:40We last met husband and wife Alan and Kerry in 2010
0:37:40 > 0:37:43when they purchased this terraced property
0:37:43 > 0:37:46as their first foray into property renovation.
0:37:57 > 0:38:01So, having done a refurbishment to a similar property once before,
0:38:01 > 0:38:02they've come back for more.
0:38:06 > 0:38:08Kerry, Alan, great to see you both again!
0:38:08 > 0:38:12- Yes!- Yes.- We're back!- Yes. Obviously went well, last time, then?
0:38:12 > 0:38:14Yes, it seemed to go pretty well.
0:38:14 > 0:38:17We made a bit of a profit off it and got rid of it in the end.
0:38:17 > 0:38:20I think the one lesson we learned from that, that we'll bring to this one
0:38:20 > 0:38:24was making the decision from early on are you going to sell it or rent it?
0:38:24 > 0:38:26Because we tried to keep a boot in both camps...
0:38:26 > 0:38:28- That was it, yeah.- And it doesn't really work.
0:38:28 > 0:38:32If you're going for rental, you need to do it to a different standard.
0:38:32 > 0:38:36- So why this house?- This is going to be an investment property definitely this time.
0:38:36 > 0:38:38It's not going to be sold on.
0:38:38 > 0:38:40This is strictly for an investment period.
0:38:40 > 0:38:43We're close to the centre of Derby. Walking distance.
0:38:43 > 0:38:45We're close to Pride Park, a walkable distance.
0:38:45 > 0:38:48There's quite a few big name firms around here.
0:38:48 > 0:38:53So we think it would be good for a professional to rent and walk to work.
0:38:53 > 0:38:55Right. And what will you do differently?
0:38:55 > 0:38:58You talk about, and I think it's a really good point,
0:38:58 > 0:39:02of deciding early on whether it's going to be an investment property to rent
0:39:02 > 0:39:03or something to sell on.
0:39:03 > 0:39:06So what won't you do that you might have done if you were selling it?
0:39:06 > 0:39:09The kitchen won't be the highest standard of kitchen.
0:39:09 > 0:39:12Basically, it'll be sort of middle ground.
0:39:12 > 0:39:16It won't be too expensive, but it also won't be the cheapest on the market.
0:39:16 > 0:39:19We'll keep a tighter rein on the budget this time.
0:39:19 > 0:39:23We think we've picked up the points that we know what to do on the property
0:39:23 > 0:39:25- to save that money now.- Right.
0:39:25 > 0:39:28The last property was a massive learning curve as well.
0:39:28 > 0:39:32I'm in the building game, but there's still stuff you can learn with a new property.
0:39:32 > 0:39:36I think we got caught out as well by putting our own personal stamp on things.
0:39:36 > 0:39:39Looking at something we liked and was to our taste.
0:39:39 > 0:39:41We stripped the internal doors back
0:39:41 > 0:39:44and put nice door furniture on, things like that.
0:39:44 > 0:39:46That was all stuff you'd probably do to sell,
0:39:46 > 0:39:50but it was more for our taste cos we like the Victorian features and that sort of thing.
0:40:08 > 0:40:12They clearly learned many valuable lessons first time around.
0:40:12 > 0:40:16So, armed with those, they're going to tackle this property with a fresh approach.
0:40:16 > 0:40:20Alan's a plasterer and has plenty of friends in the trade
0:40:20 > 0:40:23who he hopes to use and get at mates' rates.
0:40:23 > 0:40:27So, is there anything else they took from their previous project?
0:40:29 > 0:40:34How did you find the whole property renovation at the same time as doing a job?
0:40:34 > 0:40:37Well, again, that's what's going to change this time.
0:40:37 > 0:40:40Last time, it was a bit of an experiment, wasn't it?
0:40:40 > 0:40:43- Yeah.- We did it as sort of a hobby, and to see how we got on with it.
0:40:43 > 0:40:45We both love property. We're interested in property.
0:40:45 > 0:40:49But for me, personally, it was very tiring
0:40:49 > 0:40:50to try and fit it into a full-time job.
0:40:50 > 0:40:53- So this time, it's very much Alan's project.- Yeah,
0:40:53 > 0:40:55you've got the wheels in motion already.
0:40:55 > 0:40:59I thought you were going to give some words of wisdom! Other than, "I'm having nothing to do with it."
0:40:59 > 0:41:03No. I'd love to have something to do with it, cos I did enjoy it last time.
0:41:03 > 0:41:06I like getting hands on, doing all the dirty stuff.
0:41:06 > 0:41:09To be fair, you found this property, didn't you? Kerry found the property
0:41:09 > 0:41:14- and researched the area, and I go in and do the dirty work, so to speak. - Right.
0:41:14 > 0:41:16You're having nothing to do with it, Kerry?
0:41:16 > 0:41:19I'm sure I probably won't resist!
0:41:19 > 0:41:21I'll have to poke my nose in at some point!
0:41:22 > 0:41:26But no, unless I get a day where I'm really bored and nothing to do,
0:41:26 > 0:41:28and I can't imagine that happening,
0:41:28 > 0:41:31- but I'll probably come and... - You can do a bit of painting.
0:41:31 > 0:41:33Can I? Thanks(!)
0:41:34 > 0:41:36So tell me what you're going to do to it.
0:41:36 > 0:41:39Well, to begin with, stripping back the walls.
0:41:39 > 0:41:41There's quite a bit of wallpaper that needs stripping off.
0:41:41 > 0:41:44Maybe overboard a few of the ceilings and skim them.
0:41:44 > 0:41:46Skim the walls, et cetera.
0:41:46 > 0:41:51New kitchen, new bathroom. Doors, decorating.
0:41:51 > 0:41:54- New flooring.- Luckily it doesn't need any central heating.
0:41:54 > 0:41:58- It's quite a new boiler.- And maybe pull down the OK Corral that's out the back!
0:41:58 > 0:42:00Oh, really?!
0:42:00 > 0:42:03We don't want Clint Eastwood coming in the back door!
0:42:05 > 0:42:09- It's bizarre, isn't it?- It is, a bit, yes. A strange construction.
0:42:09 > 0:42:12- But it's going, is it?- It's going, yeah!- Definitely.
0:42:12 > 0:42:14- We'll put it on our house when I take it down.- I don't think so!
0:42:15 > 0:42:17So what is the budget, this time?
0:42:17 > 0:42:19We're looking at about £10,000.
0:42:19 > 0:42:23I'm thinking I can probably bring it in below that, this time.
0:42:23 > 0:42:26But that should cover virtually anything.
0:42:26 > 0:42:28Any mishaps, there's a bit in the kitty to sort it out.
0:42:28 > 0:42:31Is that costing your time in, or are you doing your bit for free?
0:42:31 > 0:42:34- No, that's costing my time in, as well.- Right.
0:42:34 > 0:42:37Yeah. I know it's a tight budget, but we've been through it a few times
0:42:37 > 0:42:39and we can do it for that.
0:42:39 > 0:42:42OK. And the timescale?
0:42:42 > 0:42:45With work dictating when I can get on it,
0:42:45 > 0:42:50- it's probably going to... I would say about two months.- OK.
0:42:50 > 0:42:52- Congratulations.- Thank you.- Thanks. - Another one under the belt.
0:42:52 > 0:42:56Well, not quite, but maybe in a few months we'll look forward to coming and seeing how you got on.
0:42:56 > 0:42:59- Thank you.- Hopefully! Thank you.
0:43:00 > 0:43:04So, another project for Alan and Kerry.
0:43:04 > 0:43:09And this time, they have made that very important decision early on,
0:43:09 > 0:43:12is this going to be something for investment, which they'll keep and rent out,
0:43:12 > 0:43:14or something they'll do up and sell on.
0:43:14 > 0:43:17You do need to make that decision, as they have done.
0:43:17 > 0:43:19It does influence what you do.
0:43:19 > 0:43:22Big question, will Kerry manage to keep her hands off this one?
0:43:22 > 0:43:25You can find out later in the show.
0:43:28 > 0:43:30When it comes to property renovation,
0:43:30 > 0:43:32you're never quite sure how it's going to go.
0:43:32 > 0:43:34Peel off the wallpaper and the plaster may follow.
0:43:34 > 0:43:38It's important to have time on your side and a contingency budget
0:43:38 > 0:43:40because you never know how it's going to go.
0:43:40 > 0:43:44With that in mind, how did today's plucky purchasers fare?
0:43:45 > 0:43:49At the foot of the Angus hills and glens in the east of Scotland,
0:43:49 > 0:43:53the town of Forfar was the location for a business premises
0:43:53 > 0:43:55will little kerb appeal.
0:43:55 > 0:43:57Actually, no kerb appeal at all
0:43:57 > 0:44:01as it was off the high street, below a hotel and down a dark alleyway.
0:44:05 > 0:44:09This former hairdressing salon's style had rather gone out of fashion.
0:44:11 > 0:44:16But local businessman Alan, who not only runs a roof truss company
0:44:16 > 0:44:18but also owns a local bar
0:44:18 > 0:44:21thought this still had a future as a hairdresser's
0:44:21 > 0:44:25and that, in fact, its location made it a cut above the rest.
0:44:27 > 0:44:34- There are other buildings, possibly, in Forfar, that would be less problematic than this one.- Yes.
0:44:34 > 0:44:39This is fairly iconic. Round about the early '80s I came into it
0:44:39 > 0:44:42and this was really happening for a small place like Forfar.
0:44:42 > 0:44:44This was a hub of hairdressing.
0:44:44 > 0:44:48Alan paid £30,000 at auction for the former salon.
0:44:48 > 0:44:52He had a proposed £40,000 renovation budget
0:44:52 > 0:44:56and a timescale of 12 to 15 weeks to carry out the work.
0:44:56 > 0:44:59He planned to open it for business in six months' time.
0:44:59 > 0:45:03He hoped not only to revive the salon's fortunes,
0:45:03 > 0:45:06but to make it that "hub of hairdressing" once again.
0:45:11 > 0:45:16Now, over two and a half years later, we're back.
0:45:21 > 0:45:24It's often been said that you should never put your personal stamp
0:45:24 > 0:45:27and your own thoughts and tastes into a project.
0:45:27 > 0:45:30But in this case, I've completely ignored that advice!
0:45:32 > 0:45:35Well, it's still a hair salon,
0:45:35 > 0:45:37but its retro lines are now bang up to date.
0:45:37 > 0:45:40Now leased out to some local ladies,
0:45:40 > 0:45:44the salon has an appointment to open in two weeks' time.
0:45:44 > 0:45:47The girls approached us. I think they initially expected a coat of paint
0:45:47 > 0:45:51and maybe a couple of new chairs thrown in.
0:45:51 > 0:45:55My wife did notice that all three of them were blonde-haired.
0:45:55 > 0:45:57So they alighted on the name Blondies
0:45:57 > 0:46:04and from there on it was a natural progression in the Parallel Lines theme which you see before you.
0:46:16 > 0:46:18When you visited here last time,
0:46:18 > 0:46:20this was all one big open room.
0:46:20 > 0:46:23When the girls came to view the premises,
0:46:23 > 0:46:25I didn't realise that one was a beauty therapist,
0:46:25 > 0:46:28and that she actually needed a separate room.
0:46:28 > 0:46:32I didn't want to close the place off or create a closed-in feeling,
0:46:32 > 0:46:37so we decided to make a folding partition door like this here
0:46:37 > 0:46:42which allows the door to move and the room to open up when not in use.
0:46:42 > 0:46:45Or to be closed for full privacy when it is in use.
0:46:45 > 0:46:49We lined the partition up with the line of the ceiling
0:46:49 > 0:46:51and it works perfectly well.
0:46:51 > 0:46:52Nice simple lines.
0:46:54 > 0:46:56So, a neat solution to utilise the space.
0:46:56 > 0:47:01And although the restyling did take only 12 weeks as planned,
0:47:01 > 0:47:04this project has been delayed by over two years.
0:47:04 > 0:47:06So what happened?
0:47:07 > 0:47:12I was originally going to develop the salon in the same vein and same theme
0:47:12 > 0:47:14as my bar across the road.
0:47:14 > 0:47:18But by which time we'd received an offer for the business
0:47:18 > 0:47:21and I was going to sell the salon.
0:47:21 > 0:47:23Unfortunately, that fell through.
0:47:23 > 0:47:28So, a frustrating time for Alan.
0:47:28 > 0:47:30But at least there's light at the end of the tunnel
0:47:30 > 0:47:34with new electrics and water pipes and plenty of parking.
0:47:36 > 0:47:41At last the hairdressers can find out if they can cut it in today's competitive market.
0:47:41 > 0:47:45But what has it cost Alan to get to this stage finally?
0:47:46 > 0:47:50Usually, when you set a budget, I think if I double it is usually where I end up.
0:47:50 > 0:47:52Unfortunately!
0:47:52 > 0:47:56In this case, we budgeted 20 but I expected to spend 40,000.
0:47:56 > 0:48:00But we came in at a very respectable 25,000.
0:48:00 > 0:48:04When you consider there was £5,000 of specialist hairdressing equipment
0:48:04 > 0:48:08and almost £5,000 on new electric and water supplies,
0:48:08 > 0:48:10I think we've been very, very good.
0:48:12 > 0:48:17A £25,000 spend on top of his £30,000 purchase price
0:48:17 > 0:48:23means that Alan's total outlay here will be £55,000 before tax and expenses.
0:48:23 > 0:48:28But has his black-and-white approach been along the right financial lines?
0:48:28 > 0:48:31We booked in two local estate agents for an opinion.
0:48:31 > 0:48:34The property has been finished to a high standard
0:48:34 > 0:48:36and now has an added wow factor
0:48:36 > 0:48:38which will definitely appeal to potential purchasers
0:48:38 > 0:48:40and tenants alike.
0:48:40 > 0:48:42I think he's done a very tasteful job.
0:48:42 > 0:48:45He's obviously spent a bit of time and money
0:48:45 > 0:48:48thinking about how he would refurbish it for the tenancy.
0:48:48 > 0:48:51I particularly like the decor, the barrel-vaulted ceiling
0:48:51 > 0:48:54and the creation of the therapist's room.
0:48:55 > 0:48:59Business premises are usually valued in terms of the revenue they can generate.
0:48:59 > 0:49:05So, with his £55,000 outlay, would Alan see any return if he sold this on?
0:49:06 > 0:49:08If I was putting this property on the market today,
0:49:08 > 0:49:11I would put it on the market at offers over £45,000
0:49:11 > 0:49:16looking to achieve between 45 and £48,000.
0:49:16 > 0:49:20As things stand, I'd market this property at £45,000.
0:49:20 > 0:49:23I suppose that's a reflection of the current market at the moment.
0:49:23 > 0:49:29But it was never bought as a sale property. It was bought as an investment to generate wealth.
0:49:30 > 0:49:33Yes, and with the hotel above the salon still being closed,
0:49:33 > 0:49:36that does affect its current value.
0:49:36 > 0:49:37But as Alan says,
0:49:37 > 0:49:39this was always a long-term investment
0:49:39 > 0:49:43so the rental revenue is more relevant.
0:49:46 > 0:49:50The commercial rental value of this property will be £6,600 per annum.
0:49:50 > 0:49:52Given the very good standard of finish,
0:49:52 > 0:49:55I would market this property at £500 per calendar month
0:49:55 > 0:49:57which is £6,000 per annum.
0:49:57 > 0:50:00I don't know what to make of that, really!
0:50:00 > 0:50:02I'm receiving considerably in excess of that.
0:50:02 > 0:50:08Although it's a very bespoke project, a very bespoke product.
0:50:08 > 0:50:14So I think mainstream valuations really have no bearing on it.
0:50:16 > 0:50:22Even valuations of £500 per calendar month would see an annual rental yield of nearly 11 per cent.
0:50:23 > 0:50:29So, despite the delays and Alan's personal design vision which may not appeal to everyone,
0:50:29 > 0:50:31it seems that, one way or another,
0:50:31 > 0:50:34healthy rental income is the end result.
0:50:37 > 0:50:38So what next?
0:50:39 > 0:50:42I'm really looking forward to opening this, in under two weeks now.
0:50:42 > 0:50:45I'm looking forward to the opening night.
0:50:45 > 0:50:47Let's see some life coming through here again
0:50:47 > 0:50:50and I've no doubt an opportunity will present itself!
0:50:50 > 0:50:52And then it'll be onto the next episode.
0:50:59 > 0:51:01We're back in Wilmorton in Derby
0:51:01 > 0:51:04to catch up with Hammer alumni, Kerry and Alan.
0:51:04 > 0:51:08They purchased this property, a classic two-bed terrace,
0:51:08 > 0:51:10in much need of modernisation
0:51:10 > 0:51:13and sporting a quirky barn-type building at the back
0:51:13 > 0:51:15for £68,000.
0:51:15 > 0:51:19Last time they were on the show, they did the house up together.
0:51:19 > 0:51:22But this time, it was going to be Alan taking on the work.
0:51:22 > 0:51:23Supposedly!
0:51:26 > 0:51:28And you're going to have nothing to do with it, Kerry?
0:51:28 > 0:51:30I'm sure I probably won't resist!
0:51:30 > 0:51:32I'll have to poke my nose in at some point!
0:51:33 > 0:51:37But, no, unless I get a day where I'm really bored and I've got nothing to do,
0:51:37 > 0:51:39and I can't imagine that happening.
0:51:39 > 0:51:44- I'll probably...- You can do a bit of painting.- Can I? Thank you(!)
0:51:45 > 0:51:47The couple had set a tight timescale of eight weeks.
0:51:47 > 0:51:51We're back now, a mere six weeks after our first visit,
0:51:51 > 0:51:54to see if Kerry did manage to stay hands off
0:51:54 > 0:51:59and if Alan has taken this tired terrace and turned it around.
0:52:22 > 0:52:27Every room has been replastered, repainted, rewired,
0:52:27 > 0:52:29re-carpeted and revived.
0:52:29 > 0:52:31Nowhere more so than the kitchen.
0:52:33 > 0:52:37You can see that the kitchen has changed quite a lot.
0:52:37 > 0:52:39The original kitchen was a bit dated
0:52:39 > 0:52:42and we decided to change it and rip it out.
0:52:42 > 0:52:45We were going to go for something simple like a cream colour,
0:52:45 > 0:52:51but Alan chose this colour and we think it contrasts nicely with the white walls.
0:52:51 > 0:52:56Nice spotlights in the ceiling, new flooring and a completely new kitchen.
0:52:56 > 0:52:57The oven, hob and extractor.
0:52:57 > 0:53:00I think it's turned out really, really well.
0:53:00 > 0:53:04I'm really happy with the colour, and I think it was an excellent choice.
0:53:05 > 0:53:08From the sound of it, Kerry did leave the decisions to Alan.
0:53:08 > 0:53:10But did she manage to stay away from the work completely?
0:53:12 > 0:53:14I've managed to stick to it, haven't I?
0:53:14 > 0:53:17I've done, I think, three days in total. I did a day in the garden,
0:53:17 > 0:53:20one day's painting, and then the big clean-up at the end.
0:53:20 > 0:53:25That's it, really. Alan's worked really hard and spent a lot of hours at the house.
0:53:25 > 0:53:28But I've taken a real back seat this time.
0:53:28 > 0:53:31From the back seat to the back yard,
0:53:31 > 0:53:34where there's been a showdown between the bar-style timbered workshop
0:53:34 > 0:53:36and good old-fashioned grass.
0:53:39 > 0:53:42And it looks like the grass has won!
0:53:44 > 0:53:47As you can see, a lot has changed out here.
0:53:47 > 0:53:50We had the OK Corral, which was here.
0:53:50 > 0:53:51And a shed-type thing here.
0:53:51 > 0:53:55So once we started, we decided to get rid of it.
0:53:55 > 0:53:57It blocked all the light out of the house.
0:53:57 > 0:53:59Caused a bit of gunfire when we decided to take it down!
0:53:59 > 0:54:02Well, it felt like gunfire with the amount of blood it produced!
0:54:02 > 0:54:07We took it down and the fence here on the left came down with it.
0:54:07 > 0:54:10And the rear fence came down, so we had to replace everything.
0:54:10 > 0:54:13We decided to put a bit of turf down to give it some greenery,
0:54:13 > 0:54:15a few plants and flowers and some shingle here and there.
0:54:15 > 0:54:19A bit of a patio area here so you can have food, et cetera.
0:54:19 > 0:54:22Also, we've rendered the rear of the property.
0:54:22 > 0:54:23We think it looks fantastic, now.
0:54:24 > 0:54:27The whole property does look a lot better.
0:54:27 > 0:54:29But it took removals, re-turfing
0:54:29 > 0:54:32and re-rendering, and that was just the outside.
0:54:32 > 0:54:37Although Alan, a plasterer, did the lion's share of the work himself,
0:54:37 > 0:54:40only bringing in experts for jobs like the electrics,
0:54:40 > 0:54:45did they really manage to keep below their projected £10,000 budget?
0:54:46 > 0:54:48Well, I'd like to say we stuck to the budget,
0:54:48 > 0:54:52but we managed to go about £2,000 over budget.
0:54:52 > 0:54:56But we didn't take into account the fencing outside,
0:54:56 > 0:55:02and we needed a couple of skips. We didn't realise we'd need a couple of skips doing the back garden.
0:55:02 > 0:55:04And all the sundries add up to a massive amount.
0:55:04 > 0:55:09You don't give account to the amount of sundries, such as paint. We can account for the overspends.
0:55:09 > 0:55:12- We put a high spec kitchen in, as well.- We did spend extra on the kitchen,
0:55:12 > 0:55:15but that was because we found a tenant quite quickly
0:55:15 > 0:55:19and he's a friend of the family and he's looking for a long-term rent
0:55:19 > 0:55:22so we thought we'd go slightly higher spec on the kitchen,
0:55:22 > 0:55:24- just to keep the tenant happy.- Yeah.
0:55:24 > 0:55:26Well, that answers my next question.
0:55:26 > 0:55:30One thing they were certain of was that they wanted to let this property.
0:55:30 > 0:55:33So it's good to hear they've got a tenant lined up already
0:55:33 > 0:55:37and that they've learned even more this time around.
0:55:37 > 0:55:40The top tip to glean from them is,
0:55:40 > 0:55:44always make sure you factor all those little added extras into your budget.
0:55:44 > 0:55:47Because they sure can add up.
0:55:47 > 0:55:49Whilst they may have gone a bit over on the spend,
0:55:49 > 0:55:52they were under on the timescale.
0:55:53 > 0:55:57Yeah, we managed to do fairly long hours here
0:55:57 > 0:55:59and a lot of Saturdays and Sundays.
0:55:59 > 0:56:03But we think it's worth it. If you've got a target,
0:56:03 > 0:56:05it helps in some respects that you've got a target to keep.
0:56:05 > 0:56:10Your tenants already ready to go, they'd given notice on their property so wanted to get in.
0:56:10 > 0:56:14So we've done it with a few days to spare, which I'm glad about. So, yeah.
0:56:15 > 0:56:19So, well done, Alan. That deserves a big pat on the back.
0:56:19 > 0:56:22Between the purchase price of 68,000
0:56:22 > 0:56:24and the work coming to around 12,000,
0:56:24 > 0:56:27the total outlay is £80,000.
0:56:28 > 0:56:33We asked two local property experts round, including the one who viewed it a few weeks ago.
0:56:37 > 0:56:41I think they've done a remarkable renovation in a short period of time,
0:56:41 > 0:56:46particularly what I like in the garden where there was a dilapidated shed.
0:56:46 > 0:56:48The look and the finish is good.
0:56:48 > 0:56:51The first thing you see is the fact that it's been replastered.
0:56:51 > 0:56:54And they've picked some nice colours, as well,
0:56:54 > 0:56:56not just washed it out in white or magnolia.
0:56:56 > 0:56:58So it looks nice. Yeah.
0:56:58 > 0:57:03The estate agents thought that, if sold, the property would get between 80 and 85,000.
0:57:03 > 0:57:06So, not much profit here.
0:57:06 > 0:57:08But having already lined up a tenant,
0:57:08 > 0:57:10are they earning a competitive rental rate?
0:57:13 > 0:57:16If I was to place this on the open market for rental purposes,
0:57:16 > 0:57:21I would suggest an initial figure of £425 per calendar month.
0:57:21 > 0:57:24If we were to see this property on the market for rent,
0:57:24 > 0:57:27we'd be looking at getting around £450 per calendar month.
0:57:27 > 0:57:31- Oh, that's OK, cos we've got 450 for it.- 450, so...- Happy with that.
0:57:31 > 0:57:34- Spot on.- Hunky dory.
0:57:34 > 0:57:38A yield of just below seven per cent is hunky dory indeed.
0:57:38 > 0:57:42What next for this pair? Could it be lucky number three for redevelopment?
0:57:43 > 0:57:47Next, we'll have a bit of a holiday. I haven't relaxed for six months!
0:57:47 > 0:57:51Pick ourselves up and start again and do another one, maybe.
0:57:54 > 0:58:00That's it from us. We hope you've enjoyed the auction room tales on today's show.
0:58:00 > 0:58:03Make sure you join us next time for more Homes Under The Hammer.
0:58:03 > 0:58:05- See you then.- Goodbye.- Goodbye.
0:58:27 > 0:58:29Subtitles by Red Bee Media Ltd