0:00:02 > 0:00:04Hello. Now, despite slightly confused market conditions,
0:00:04 > 0:00:07people still want to grab a slice of the property action.
0:00:07 > 0:00:09And if you are prepared to take the plunge,
0:00:09 > 0:00:12auctions are a great place to start.
0:00:12 > 0:00:13It can be fast, it can be frantic,
0:00:13 > 0:00:16but it is interesting to buy your home under the hammer.
0:00:43 > 0:00:46Now, some properties are very popular at auction.
0:00:46 > 0:00:48Meanwhile, others go unsold.
0:00:48 > 0:00:51The auction room can be a very difficult place to conquer.
0:00:51 > 0:00:53So, here are the properties that caught
0:00:53 > 0:00:56the hearts of the buyers on today's show.
0:00:56 > 0:00:59In Cardiff, what a property we have for you.
0:00:59 > 0:01:02Great size, nicely appointed, but...
0:01:02 > 0:01:05The layout, it's all wrong. It's all wrong, it's all wrong.
0:01:05 > 0:01:10And if it's the high life you want, don't miss this flat in London.
0:01:10 > 0:01:14I can see right the way across London to South Bank,
0:01:14 > 0:01:16and look - that is the London Eye.
0:01:16 > 0:01:20In Oldham, this three-bed house is full of surprises.
0:01:20 > 0:01:25You probably think you know EXACTLY what I'm going to find.
0:01:25 > 0:01:27But no.
0:01:27 > 0:01:30All these properties are being sold at auction.
0:01:30 > 0:01:33We'll find out who bought them and what they paid for them
0:01:33 > 0:01:34when they went under the hammer.
0:01:34 > 0:01:36Are you sure?
0:01:41 > 0:01:46I'm in Cardiff, capital city of Wales, and in the late 19th century,
0:01:46 > 0:01:49Cardiff became the biggest coal exporting port in the world.
0:01:49 > 0:01:52These days, the bay area is a modern,
0:01:52 > 0:01:55thriving quayside development, and the property
0:01:55 > 0:01:59I'm here to see is about three miles away from the bustling city centre.
0:01:59 > 0:02:03I'm in Old St Mellons, a suburb east of Cardiff.
0:02:03 > 0:02:05It's a popular spot for commuters,
0:02:05 > 0:02:07with easy access to the Welsh capital.
0:02:07 > 0:02:12And the property I'm here to see I think will be very popular indeed.
0:02:12 > 0:02:13It's this.
0:02:13 > 0:02:17It is a four-bedroom detached house, which has been extended.
0:02:17 > 0:02:22The guide price was 185,000 quid. Let's take a peek.
0:02:23 > 0:02:28Hmm, OK, not everyone will like the fake Tudor beams, but there is
0:02:28 > 0:02:32actually some real historical authenticity to this building.
0:02:32 > 0:02:36Part of it, apparently, once was a barn used for storing carts.
0:02:36 > 0:02:41Over the years, the building had a lot of extensions added, so it's vast.
0:02:41 > 0:02:45I'm hoping these broken windows don't indicate any problems inside.
0:02:49 > 0:02:53So, through a little porch into your main hallway.
0:02:53 > 0:02:55It's really nice that there is this big area here.
0:02:55 > 0:02:59Gives a really good feeling to the property the moment you walk through the door.
0:02:59 > 0:03:01Stairs to the bedrooms there. Lots of little rooms going off there.
0:03:01 > 0:03:04And a very odd little room at the front.
0:03:04 > 0:03:06I don't know what you'd use that for.
0:03:06 > 0:03:09And then through into this area here, which I suppose is...
0:03:09 > 0:03:13Well, it's kind of a reception room, I don't know quite what.
0:03:13 > 0:03:17It doesn't particularly work because I can see through the kitchen
0:03:17 > 0:03:21and that is too small, as far as I'm concerned.
0:03:21 > 0:03:23That wall wants to go.
0:03:23 > 0:03:26I mean, without even thinking and seeing the rest of the property,
0:03:26 > 0:03:29get rid of that to really open that up, because you come through here
0:03:29 > 0:03:32into what I suppose is the formal dining room area.
0:03:32 > 0:03:37And, again, it's a good-sized space, but in terms of the flow
0:03:37 > 0:03:41of the property and the layout, it's all wrong.
0:03:41 > 0:03:43It's all wrong, it's all wrong, it's all wrong.
0:03:43 > 0:03:48Just in case you didn't get that, let me repeat - it's all wrong.
0:03:48 > 0:03:49The kitchen is dated
0:03:49 > 0:03:54and really not using its size to its best advantage.
0:03:54 > 0:03:57To one side, there's a small corridor containing a toilet.
0:03:57 > 0:04:01And further along this huge dual aspect lounge,
0:04:01 > 0:04:05so much space and potential just waiting to be realised.
0:04:05 > 0:04:09But go back through the kitchen and there's more evidence of just how
0:04:09 > 0:04:12this ground floor layout isn't working.
0:04:12 > 0:04:14Well, at the very rear of the property,
0:04:14 > 0:04:21accessed through this utility area, is an extension, just one big room.
0:04:21 > 0:04:24And it's just odd. I mean, the way you get to it through here...
0:04:24 > 0:04:25It's got a shower in it.
0:04:25 > 0:04:29Maybe this would naturally lend itself to being a gym or
0:04:29 > 0:04:32something like that, with the shower facilities and whatever.
0:04:32 > 0:04:35Access out into the rear garden via these patio doors as well.
0:04:35 > 0:04:39It really has shrunk the size of the rear garden as a negative,
0:04:39 > 0:04:42but it's, you know, a useful space.
0:04:42 > 0:04:44Again, though, the whole thing of the internal
0:04:44 > 0:04:47layout of the property, not quite working.
0:04:47 > 0:04:53It's disappointing that such a large house has such a small garden.
0:04:53 > 0:04:57You can sort that interior out, but bar knocking down the extension,
0:04:57 > 0:05:00you just can't make this garden any bigger.
0:05:00 > 0:05:04So far, an ideal family house, just not with an ideal family garden.
0:05:04 > 0:05:09Upstairs, and does the layout improve? Well, let's find out.
0:05:09 > 0:05:13Nice big landing, so we like that. Bathroom and separate loo here.
0:05:13 > 0:05:16A huge great corner bath. Very, very dated, though.
0:05:16 > 0:05:20A kind of corridor, odd corridor, leading down to a bedroom there.
0:05:20 > 0:05:26Very large bedroom that way. Another very good-sized bedroom there.
0:05:26 > 0:05:29A nice additional feature, which is a bit of a balcony.
0:05:29 > 0:05:31And then through to...
0:05:31 > 0:05:35through to a room which, in some ways, epitomises the problems with
0:05:35 > 0:05:37this house. This is your fourth bedroom.
0:05:37 > 0:05:40This is the bedroom bit, that is the en suite.
0:05:40 > 0:05:43And as you can see, it's almost the same size as the bedroom.
0:05:45 > 0:05:49Right, take out all the internal walls and start again.
0:05:49 > 0:05:51That's the only thing to do.
0:05:52 > 0:05:56So the house may be big, but what it needs is a total
0:05:56 > 0:05:59back-to-basics renovation to get it looking its best.
0:06:00 > 0:06:05It's a lot of house for that guide price of 189,000,
0:06:05 > 0:06:09but does a local estate agent find this house as perplexing as I do?
0:06:09 > 0:06:11First impressions when arriving is,
0:06:11 > 0:06:13"Wow, this looks like an interesting property."
0:06:13 > 0:06:15It's got mock Tudor features.
0:06:15 > 0:06:18But then as you enter and go round the property,
0:06:18 > 0:06:22you realise it is in quite a disappointing position at the moment.
0:06:22 > 0:06:26Unfortunately, the way it has been designed and obviously over the years
0:06:26 > 0:06:30extended, refurbished, is such that it now needs a good thought
0:06:30 > 0:06:31and clear out.
0:06:31 > 0:06:33Basically, with four walls,
0:06:33 > 0:06:37you have got a good square footage for family accommodation, but
0:06:37 > 0:06:40not the current arrangement conducive to a family home.
0:06:40 > 0:06:43But as an investment, is this a good buy?
0:06:43 > 0:06:45Could you do it up and let it out?
0:06:45 > 0:06:47Once the property has been renovated,
0:06:47 > 0:06:50the property itself is in a zone where it's very popular
0:06:50 > 0:06:53for schools, public transport, so there is a high demand.
0:06:53 > 0:06:54And, in my opinion,
0:06:54 > 0:06:58the property would rent at £900 per calendar month.
0:06:58 > 0:07:01And what sort of resale value could the house achieve?
0:07:01 > 0:07:05In my opinion, once this property has been thoughtfully redesigned,
0:07:05 > 0:07:10it could reach a capital value of £350,000.
0:07:11 > 0:07:14Well, a house that doesn't quite live up to the promise
0:07:14 > 0:07:17when you arrive at the gates and look at it.
0:07:17 > 0:07:20It's a little bit all over the place inside
0:07:20 > 0:07:22and the back garden definitely disappointing.
0:07:22 > 0:07:26Still, it's in a good location and has fantastic scope to be quite...
0:07:26 > 0:07:28Well, quite something, actually.
0:07:28 > 0:07:32Let's see who fancied taking it on when it went under the hammer.
0:07:36 > 0:07:39Onto lot number 24.
0:07:39 > 0:07:42185. Are you going to wave at me? 185,000, we're looking for.
0:07:43 > 0:07:47185, thank you. 185,000, sir. Thank you. 185.
0:07:47 > 0:07:50Who's going to take this chap on? I've got 185.
0:07:50 > 0:07:52I'll take it in ones, if it helps things along.
0:07:52 > 0:07:55185 I have. 86, thank you.
0:07:55 > 0:07:57187. 187, and 8.
0:07:57 > 0:08:008, 9, 9, 90.
0:08:00 > 0:08:06One, two, three, four, five, six, seven and eight.
0:08:06 > 0:08:119, 200. 200,000, I'm in the market. 201, 2?
0:08:11 > 0:08:14201,000 on you, sir. 201,000...
0:08:14 > 0:08:16201,000 for you at the back... 2.
0:08:16 > 0:08:18Thank you. 202.
0:08:18 > 0:08:21Three, four, five, six, seven.
0:08:21 > 0:08:25208, 9, 10, 11, 12...
0:08:25 > 0:08:27212,000.
0:08:27 > 0:08:3313, 14, 15, 16, 17, 18, 19, 20.
0:08:33 > 0:08:36220 on you, sir. 220, and 1. 221, and 2.
0:08:36 > 0:08:38Two, three, four, five.
0:08:38 > 0:08:40226, 227, 228.
0:08:40 > 0:08:449? 230. 1, 2...
0:08:44 > 0:08:49Two, three, four, five, six...
0:08:49 > 0:08:52235 is on you, sir. 235, OK?
0:08:52 > 0:08:55235,000. Any advance? Be quick.
0:08:55 > 0:08:57235,000.
0:08:57 > 0:08:59Any advance?
0:08:59 > 0:09:03235. Yours, sir. 235,000.
0:09:03 > 0:09:08That final bid of 235,000 was made by Cardiff-based Will,
0:09:08 > 0:09:12who may look familiar to you if you are a regular viewer of the show.
0:09:14 > 0:09:18We met Will twice before, once in 2007 when,
0:09:18 > 0:09:20as a fledgling property developer,
0:09:20 > 0:09:23he bought a four-bed house with his brother John to do up and rent out.
0:09:29 > 0:09:33Lucy then caught up with Will a few years and a few houses down the line
0:09:33 > 0:09:37when he bought an even bigger end-of-terrace with eight lettable rooms.
0:09:39 > 0:09:42Five years on, and Will is obviously
0:09:42 > 0:09:45still in the property game and still buying big.
0:09:45 > 0:09:49I met up with him to find out his plans for his latest purchase.
0:09:49 > 0:09:52- Will, great to see you again. - You too, Martin, yeah.- How are you?
0:09:52 > 0:09:55- Very good, thank you.- What's been happening since last time we met?
0:09:55 > 0:09:57All sorts has been happening. MARTIN LAUGHS
0:09:57 > 0:10:02Been married, new baby, more houses, lots of work. Busy, busy.
0:10:02 > 0:10:05- Great. So it's obviously gone well. - Yeah, it has gone very well.
0:10:05 > 0:10:07How many properties are you up to now?
0:10:07 > 0:10:11We have got six rentals and obviously this is the latest one,
0:10:11 > 0:10:12- this is number seven, yeah.- Wow.
0:10:12 > 0:10:16So is this a bit of a change, this one, or is this going to be a rental as well?
0:10:16 > 0:10:20This is a complete change, because this is going to be a family home.
0:10:20 > 0:10:23Not for me, though, not for me. It's for my brother. He's been looking...
0:10:23 > 0:10:27He's actually based in Cornwall with the Navy, but he's in Cardiff an awful lot.
0:10:27 > 0:10:30So it's part of an investment for him, getting him on the ladder,
0:10:30 > 0:10:33and obviously it is a nice house for him to live in when he is here.
0:10:33 > 0:10:36Did you find this place for him or did he find it?
0:10:36 > 0:10:39I do all the legwork. I found it, phoned him, told him about it, did the viewing,
0:10:39 > 0:10:41bought it, then showed it to him.
0:10:41 > 0:10:43Wow!
0:10:43 > 0:10:46- Mm.- But you were spending his money? - Yeah.
0:10:46 > 0:10:49- Without him having seen the place?- Yeah.
0:10:49 > 0:10:52I can't believe this wasn't slightly nerve-racking for you.
0:10:52 > 0:10:56No, but I know what he likes, I know what he wanted,
0:10:56 > 0:10:58and he trusts me, I trust him.
0:10:58 > 0:10:59It all works out.
0:10:59 > 0:11:01Well, John, Will's younger brother,
0:11:01 > 0:11:07obviously trusts him a lot to spend £235,000 of his money.
0:11:07 > 0:11:10John is currently serving in the Navy, based in Cornwall,
0:11:10 > 0:11:14flying helicopters, so he won't be actively involved in the renovation.
0:11:14 > 0:11:19But he has seen the place and the brothers know the awkward room layouts need fixing.
0:11:19 > 0:11:21It's a bit of a funny one.
0:11:21 > 0:11:24There's been extensions popped on at the back and there's...
0:11:24 > 0:11:27So we're going to have to do some moving around of walls
0:11:27 > 0:11:29and the like, but I like doing stuff like that.
0:11:29 > 0:11:32It's nice to make big changes like that, so I'm good to squeeze in...
0:11:32 > 0:11:35There's plenty of room for an extra bedroom upstairs, so far from
0:11:35 > 0:11:38having a small four-bedroom house, you can have a nice, big five-bedder.
0:11:38 > 0:11:42Erm, so we'll do that and get it all put back together really nicely.
0:11:42 > 0:11:46Right. Is this something you're going to get involved in, in terms of...?
0:11:46 > 0:11:50I'll be doing the hard stuff, rolling my sleeves up and making it happen.
0:11:50 > 0:11:53I've got a little team with me, so we'll get stuck in and make it nice.
0:11:53 > 0:11:57- He's very lucky to have you as an older brother, isn't he? - I like to think so.
0:11:57 > 0:12:00Will reckons the work should take about six months with
0:12:00 > 0:12:02a budget of £30-£40,000.
0:12:02 > 0:12:06But if the plan is to turn this four-bed house into a five-bedder
0:12:06 > 0:12:09then that's a lot of rooms for a single man.
0:12:09 > 0:12:12And with Will's growing family, well,
0:12:12 > 0:12:15are you thinking what I'm thinking?
0:12:15 > 0:12:17Maybe I could move in and he could have one of the rooms at the back.
0:12:17 > 0:12:20We'll have to see. No, it's not. It's going to be his house.
0:12:20 > 0:12:22I assured him it will be his house.
0:12:22 > 0:12:23You talk about that flippantly,
0:12:23 > 0:12:26but you say you've got a new family, a young family.
0:12:26 > 0:12:28Yeah, I've got two children now.
0:12:28 > 0:12:30I've got Skye, who's just over three and a half,
0:12:30 > 0:12:33- and I've got Jesse now, who's nine months.- Right.
0:12:33 > 0:12:36So, yeah, got a boy and a girl and we could do with some more room
0:12:36 > 0:12:39ourselves, but he might come back and find us squatting in his house.
0:12:39 > 0:12:43- Who knows?- Is the temptation not to do this for yourself?
0:12:43 > 0:12:47Oh, it's very tempting. Especially when it's all done nicely, it'll be even more tempting.
0:12:47 > 0:12:49But, no, I wouldn't do that to him.
0:12:49 > 0:12:51- MARTIN LAUGHS - What about you personally?
0:12:51 > 0:12:54Any sort of plans for expanding the portfolio even further?
0:12:54 > 0:12:57This is going to tie me up for a bit now, doing his house. Jeez!
0:12:57 > 0:13:00But we will wait and see, see what happens once this is done
0:13:00 > 0:13:03and he is in and settled. We'll perhaps start looking again.
0:13:03 > 0:13:05Maybe see you at the next auction, who knows?
0:13:05 > 0:13:08- Great. Good. Well, listen, congratulations.- Thanks very much.
0:13:08 > 0:13:12- Well done.- Thank you.- Look forward to seeing how you get on.- Thanks.
0:13:13 > 0:13:16Well, what a nice big brother Will is,
0:13:16 > 0:13:21but what a responsibility - spending nearly a quarter of a million pounds
0:13:21 > 0:13:24of brother John's money on this.
0:13:24 > 0:13:26Well, thankfully, he liked it, and actually,
0:13:26 > 0:13:28the biggest question is going to be
0:13:28 > 0:13:33whether Will falls in love with it himself after it has been restored.
0:13:33 > 0:13:36You can find out how he transforms this place later in the show.
0:13:46 > 0:13:51OK, so what do the following people all have in common?
0:13:51 > 0:13:56Carl Cox, Cannon and Ball, Eric Sykes, the man who voiced
0:13:56 > 0:14:02the Daleks, musicians Inspiral Carpets and Mark Owen of Take That.
0:14:02 > 0:14:06Well, they all come from the Metropolitan Borough of Oldham.
0:14:08 > 0:14:11Over the years, Oldham has seen some interesting times.
0:14:11 > 0:14:15It was once the textile processing capital of the world,
0:14:15 > 0:14:18so perhaps it's not surprising that a town with such a rich
0:14:18 > 0:14:22industrial heritage should produce such major stars.
0:14:28 > 0:14:31Well, getting back to where they are from,
0:14:31 > 0:14:34I'm here to see a really interesting sounding property.
0:14:34 > 0:14:39Five minutes from the town centre, close to the motorway network and
0:14:39 > 0:14:43the new Metrolink into Manchester, three-bedroom mid-terrace.
0:14:43 > 0:14:47Had a guide price of £50-£60,000. Let's take a look.
0:14:50 > 0:14:54Nice double-glazed front door, which is good.
0:14:54 > 0:14:56And then into something which I really think is a real
0:14:56 > 0:14:58bonus for a property, a little porchway here.
0:14:58 > 0:15:01Keeps the draughts out, keeps it nice and warm in here.
0:15:01 > 0:15:06And at first glance, yeah, doesn't seem to be in too bad condition.
0:15:06 > 0:15:07Interesting choice of flooring.
0:15:07 > 0:15:10- FLOOR SQUEAKS - Squeaky, too!
0:15:10 > 0:15:13Erm, a bit of, I think, damp going on there,
0:15:13 > 0:15:15but looks like it's got central heating.
0:15:15 > 0:15:17Although, judging by the radiators and the pipes,
0:15:17 > 0:15:19it doesn't look like it's that modern.
0:15:19 > 0:15:22And judging by the boiler, that's definitely the case!
0:15:22 > 0:15:24But I like what's happened in here. It's a kitchen.
0:15:24 > 0:15:27I mean, in these kind of properties, more often than not, people have
0:15:27 > 0:15:30built an extension on the back and that is where the kitchen is.
0:15:30 > 0:15:33This makes a really good-sized kitchen, basically
0:15:33 > 0:15:36built into what was the rear sitting room.
0:15:36 > 0:15:38And, you know, not bad condition.
0:15:38 > 0:15:41Bit of smartening up, you could probably rent it out like it is.
0:15:41 > 0:15:43It's a very good start.
0:15:47 > 0:15:51This kitchen is certainly up to the job.
0:15:51 > 0:15:55It's in good nick, well laid out and has a cooker to boot.
0:15:55 > 0:15:58The boiler, however, definitely needs to be replaced,
0:15:58 > 0:16:02and I would look to hide it away somewhere more discreet.
0:16:04 > 0:16:06But with that really good-sized lounge,
0:16:06 > 0:16:10downstairs definitely gets the thumbs up from me.
0:16:13 > 0:16:19Now, upstairs, you probably think you know EXACTLY what
0:16:19 > 0:16:21I'm going to find.
0:16:21 > 0:16:24But no. Bit of a surprise, and it's a good one.
0:16:24 > 0:16:26You've got the bedroom which would have been at the back,
0:16:26 > 0:16:28that's had some kind of a bathroom added to it.
0:16:28 > 0:16:30So that works actually quite well.
0:16:30 > 0:16:34And at the front here, this is the original door leading into what would've been the one room here.
0:16:34 > 0:16:36That has been divided into two.
0:16:36 > 0:16:40I mean, hmm, you've got a bit of corridor space and it's sort of...
0:16:40 > 0:16:43I don't like things which have got droppy kind of things.
0:16:43 > 0:16:49It's a bit of a hazard. But in terms of utilising the space, really good.
0:16:49 > 0:16:52And definitely having the bathroom upstairs, a major plus.
0:16:52 > 0:16:54And they've even managed to squeeze a bath in.
0:16:54 > 0:16:56A bit of a small one, but a bath.
0:16:56 > 0:17:00- # One, two, three - One, two, three
0:17:00 > 0:17:03# Oh, that's how elementary... #
0:17:03 > 0:17:07Hey, three bedrooms and a bathroom upstairs, who'd have thought it?
0:17:07 > 0:17:10They're not a bad size and, again, in pretty good nick,
0:17:10 > 0:17:14making this a relatively straightforward refurbishment.
0:17:16 > 0:17:19- # It's easy - It's so easy... #
0:17:19 > 0:17:23I reckon you might need to spend some more time in the garden than the house.
0:17:23 > 0:17:27It certainly could do with some smartening up.
0:17:27 > 0:17:29With good access from the back,
0:17:29 > 0:17:32off-street parking or a garage could be an option.
0:17:33 > 0:17:37But, overall, this looks like a great investment.
0:17:37 > 0:17:39So what does a local estate agent think?
0:17:42 > 0:17:43Quite a nice property.
0:17:43 > 0:17:46There's not much work required in order to upgrade it.
0:17:46 > 0:17:48You've already got the PVCu double glazing.
0:17:48 > 0:17:51You've got the gas central heating already installed.
0:17:51 > 0:17:53I think the only negative is the bathroom.
0:17:53 > 0:17:56I think it's got a small bath. It's not ideal.
0:17:56 > 0:17:59I would turn that probably into a shower room.
0:17:59 > 0:18:01Ah, maybe a shower could be an option.
0:18:01 > 0:18:03Personally, though, I'd stick to a bath.
0:18:03 > 0:18:05I think it's more family friendly.
0:18:07 > 0:18:10But even so, what kind of resale values could a house that
0:18:10 > 0:18:15was guided at £50-£60,000 achieve once given a little TLC?
0:18:17 > 0:18:20On the open market, I would expect a property like this,
0:18:20 > 0:18:23once renovated, to achieve £75,000.
0:18:23 > 0:18:26Not a bad resale value.
0:18:26 > 0:18:31But I have to say, I see this more as a perfect rental property.
0:18:31 > 0:18:34I would expect this property to achieve £450 per calendar month.
0:18:34 > 0:18:39That means if it was bought anywhere near that £50-£60,000 guide price,
0:18:39 > 0:18:42you could see a 9% yield, which is very nice indeed.
0:18:47 > 0:18:52Well, it's a good-sized house that just needs a bit of cosmetic work to really spruce it up.
0:18:52 > 0:18:55Let's see who went for it when it went under the hammer.
0:18:59 > 0:19:04Lot 25, three-bed, mid-terraced property, well maintained.
0:19:04 > 0:19:07Set in a popular area with spacious accommodation, three bedrooms.
0:19:07 > 0:19:10Get started on this - 45.
0:19:10 > 0:19:1245 here.
0:19:12 > 0:19:18Just beat you to it in the front, sorry. 46 behind. 47 in front.
0:19:18 > 0:19:2048. 49.
0:19:21 > 0:19:2450. 51.
0:19:24 > 0:19:2652.
0:19:26 > 0:19:2852 on the phone.
0:19:28 > 0:19:3253, 54, 55...
0:19:32 > 0:19:3555 I've got. 56.
0:19:35 > 0:19:37Maybe not surprisingly, this was a popular lot,
0:19:37 > 0:19:41and we rejoin the bidding at £60,000.
0:19:41 > 0:19:45Back in at 60-and-a-half. Half, 61.
0:19:47 > 0:19:49Half, 62.
0:19:49 > 0:19:5262 I've got. Half, can you?
0:19:52 > 0:19:54Half. 63.
0:19:54 > 0:19:58Back in at 63. Half.
0:19:58 > 0:20:0163,250, 63-and-a-half.
0:20:02 > 0:20:0363,750.
0:20:04 > 0:20:0763,750. 64.
0:20:07 > 0:20:1164 I've got. 64,250.
0:20:11 > 0:20:1464-and-a-half. 64,750.
0:20:16 > 0:20:1965. 65 I have got.
0:20:20 > 0:20:23At £65,000. I want to sell it...
0:20:25 > 0:20:27First time, second time,
0:20:27 > 0:20:30third and final time, you've had your chance...
0:20:30 > 0:20:33Well done, sir! I knew you'd get it.
0:20:37 > 0:20:39So, after that hard-fought battle,
0:20:39 > 0:20:43the successful bid of £65,000 was made by Ken.
0:20:45 > 0:20:47Ken lives 20 minutes away in Bolton
0:20:47 > 0:20:52and recently has started to build a small rental portfolio.
0:20:52 > 0:20:56- Ken, good to meet you.- Nice to meet you, Martin.- Congratulations.
0:20:56 > 0:20:59- Thank you.- Tell me why you wanted to buy this place.
0:20:59 > 0:21:04Well, we know the area and I've got other houses in this type of area.
0:21:04 > 0:21:06It were a last-minute thing,
0:21:06 > 0:21:08so I didn't actually get the chance to come and look inside it.
0:21:08 > 0:21:12MARTIN GASPS So I bought it without even looking inside it.
0:21:12 > 0:21:15- Oh, no! - So I'm quite pleasantly surprised.
0:21:15 > 0:21:18It is quite well maintained, actually.
0:21:18 > 0:21:20Yeah, you were lucky, for sure.
0:21:20 > 0:21:23So it sounds like this is something you do, is it?
0:21:23 > 0:21:27Yeah, about two-and-a-half years ago, I sold my company.
0:21:27 > 0:21:30- I'd run it for 21 years. - Wow, what was that?
0:21:30 > 0:21:35- We...we used to manufacture rear-view mirrors for trucks.- OK!
0:21:35 > 0:21:37- A very niche market. - Yeah, very niche market.
0:21:37 > 0:21:39So I sold my company about two-and-a-half years ago
0:21:39 > 0:21:42and I thought, "Well, what shall I do with the money?"
0:21:42 > 0:21:45So I decided to start buying houses and renting them out.
0:21:45 > 0:21:49- # Here comes the mirror man - Ooh-ooh-ooh-ooh!
0:21:49 > 0:21:53- # Says he's a people fan - Ooh-ooh-ooh-ooh!
0:21:53 > 0:21:55# Here comes the mirror man
0:21:55 > 0:21:57# Ahhhhh... #
0:21:57 > 0:22:00With the money he got from his mirror business,
0:22:00 > 0:22:04Ken has bought six other properties for his rental portfolio.
0:22:04 > 0:22:08And as he didn't see this property, on reflection - ha-ha! -
0:22:08 > 0:22:09I think he's been lucky.
0:22:09 > 0:22:12It's certainly an approach I wouldn't advise.
0:22:13 > 0:22:16So what involvement do you have in the process?
0:22:16 > 0:22:18Do you project manage it? Do you actually get your hands dirty?
0:22:18 > 0:22:21- No, I don't. I have people...! - You have people who do!
0:22:21 > 0:22:24I have done that in the past. I have people who do it.
0:22:24 > 0:22:26People who do them up, we have, you know,
0:22:26 > 0:22:30the electricians and plumbers, so we sort of...
0:22:30 > 0:22:33The guy who lets, who manages it for me,
0:22:33 > 0:22:38I work with him on the guys that we use and, you know, they're pretty...
0:22:38 > 0:22:42- They do a good deal for us.- Great. So what's the plan for this place?
0:22:42 > 0:22:48I'm going to get the plumber in first to check the gas fire out.
0:22:48 > 0:22:52I'll need a new boiler in the kitchen.
0:22:52 > 0:22:56I want to rip these floors up, this flooring up, and especially
0:22:56 > 0:23:00in the kitchen, cos it's sort of a bit loose, the kitchen.
0:23:00 > 0:23:03Put some cushion floor down in the kitchen,
0:23:03 > 0:23:07- and I want to put carpets all through the house.- Right.
0:23:07 > 0:23:10And basically get it all painted and decorated.
0:23:10 > 0:23:12So what's the budget, then?
0:23:12 > 0:23:17I think we should get it done for 3,000, 3,500.
0:23:17 > 0:23:19What's the timescale for sorting it?
0:23:19 > 0:23:23We want to get it done in about two and a half weeks.
0:23:23 > 0:23:25- Oh, wow, straight in there. - Yeah, straight in.
0:23:25 > 0:23:27- Have you already got people interested, or...?- Not yet, no.
0:23:27 > 0:23:30We're going to advertise it while we're doing the work.
0:23:30 > 0:23:33Two-and-a-half-weeks, boom, get it on the market.
0:23:33 > 0:23:35Get it on the market. Get it done up.
0:23:35 > 0:23:38Get it done up and get it rented out, get the money coming in.
0:23:38 > 0:23:41It's obviously gone well, this whole idea of, you know,
0:23:41 > 0:23:45taking the money you worked hard to generate and put it into property.
0:23:45 > 0:23:49Yeah, it has, yeah, and it gives us a good income.
0:23:49 > 0:23:50I'm retired now,
0:23:50 > 0:23:55so I get a very good income off the rents that it generates.
0:23:55 > 0:23:58- Well, listen, congratulations.- OK. Thank you.- Good luck with it.
0:23:58 > 0:24:01- Yeah, thanks a lot.- Look forward to seeing how you get on.- Yeah. Thanks.
0:24:01 > 0:24:06- # Here comes the mirror man - Ooh-ooh-ooh-ooh!
0:24:06 > 0:24:09- # Says he's a people fan - Ooh-ooh-ooh-ooh!
0:24:09 > 0:24:11# Here comes the mirror man
0:24:11 > 0:24:14# Ahhhhh... #
0:24:14 > 0:24:17So, Ken taking the money he got from the sale of his business
0:24:17 > 0:24:19and investing it wisely in property.
0:24:19 > 0:24:23And another good one to add to the portfolio.
0:24:23 > 0:24:26But two-and-a-half weeks to sort it out? That's not long.
0:24:26 > 0:24:29How will he get on? You can find out later in the show.
0:24:31 > 0:24:36Coming up, the London flat that's all set to sparkle.
0:24:36 > 0:24:40We do a lot of blinging to our flats.
0:24:41 > 0:24:45And back in Oldham, everyone - and I mean everyone -
0:24:45 > 0:24:47is keen to see the results.
0:24:47 > 0:24:51Today, really, this morning, was the first time I came to see it.
0:24:54 > 0:24:57But first, it's a return to South Wales.
0:24:58 > 0:25:02It was three miles east of Cardiff city centre where we glimpsed
0:25:02 > 0:25:06a property that rather stood out from the rest of the street.
0:25:08 > 0:25:12Formerly a barn conversion, this large four-bedroom detached house
0:25:12 > 0:25:17was a maze of rooms, so not only was an update in order,
0:25:17 > 0:25:20but a rethink of the layout wouldn't go amiss either.
0:25:22 > 0:25:28It was bought for £235,000 by property developer Will who,
0:25:28 > 0:25:30along with his brother John,
0:25:30 > 0:25:33has built up a small portfolio of rental properties.
0:25:36 > 0:25:39So is this a bit of a change, this one, or is this going to be a rental as well?
0:25:39 > 0:25:43This is a complete change, because this is going to be a family home.
0:25:43 > 0:25:46Not for me, though, not for me. It's for my brother. He's been looking...
0:25:46 > 0:25:48He is actually based in Cornwall with the Navy
0:25:48 > 0:25:50but he's in Cardiff an awful lot.
0:25:50 > 0:25:54So it's part of an investment for him, getting him on the ladder,
0:25:54 > 0:25:57and obviously it's a nice house for him to live in when he's here.
0:25:57 > 0:26:01So the plan was for Will to renovate this house around his other
0:26:01 > 0:26:03developments and building projects
0:26:03 > 0:26:07while brother John was kept busy with his naval career.
0:26:07 > 0:26:11So, armed with a budget of £30-£40,000,
0:26:11 > 0:26:14the hope was to get it shipshape in around six months.
0:26:16 > 0:26:2016 months later, we're back with Will to see how he's got on.
0:26:23 > 0:26:29New lawns and a much more presentable front area suggest some progress.
0:26:29 > 0:26:32# I wanna see inside
0:26:32 > 0:26:39# Would you let me see beneath your beautiful tonight?
0:26:41 > 0:26:44# Oh-oh-oh-oh!
0:26:46 > 0:26:49# See beneath, see beneath
0:26:49 > 0:26:53# I-I-I-I... #
0:26:53 > 0:26:55Oh, joy, exactly what I wanted to see -
0:26:55 > 0:26:57a complete reworking of the layout.
0:27:00 > 0:27:03So this is a room where a lot of the work happened.
0:27:03 > 0:27:06It has changed beyond all recognition, really.
0:27:06 > 0:27:09There was a large wall coming down here which separated
0:27:09 > 0:27:12a dining room from a smaller dining room here.
0:27:12 > 0:27:14Once we took those out,
0:27:14 > 0:27:17that gave us the space to be able to put in the island unit to give
0:27:17 > 0:27:22a really nice, open-plan kitchen, dining, family sort of room.
0:27:26 > 0:27:30There's now so much more flow, with the kitchen leading into the
0:27:30 > 0:27:34side extension, which in turn flows to a garden you can actually see.
0:27:39 > 0:27:43And the garden can also be accessed by French doors
0:27:43 > 0:27:44from the refurbished lounge.
0:27:46 > 0:27:48There's a modern cloakroom to complete the downstairs
0:27:48 > 0:27:52and there's also been some layout changes upstairs.
0:27:53 > 0:27:55So this is where the chimney was.
0:27:55 > 0:27:57We took it out, it gives us
0:27:57 > 0:28:00a nice corridor through into our master bedroom.
0:28:00 > 0:28:04The master used to be a small, boxy room with a dressing room off of it.
0:28:04 > 0:28:07Once we took the wall down, separating it from the en suite,
0:28:07 > 0:28:12we popped a window in the back wall, two foot thick of old stonework.
0:28:12 > 0:28:16Then I got up in the loft, saw the state of the beams, and I've always
0:28:16 > 0:28:20wanted to do a gallery ceiling, so it was an offer too good to refuse.
0:28:20 > 0:28:24So, we pulled it all down, sanded the beams, beautiful open ceilings,
0:28:24 > 0:28:27beautiful exposed beams, even a little chandelier to boot.
0:28:27 > 0:28:29What more could you want?
0:28:29 > 0:28:34# Would you let me see beneath your beautiful tonight? #
0:28:34 > 0:28:36So, beneath the ceiling,
0:28:36 > 0:28:39the beautiful old beams can see the light of day.
0:28:39 > 0:28:42The master bedroom now comes complete with a modern en suite.
0:28:44 > 0:28:48And the three other bedrooms aren't looking too shabby either.
0:28:48 > 0:28:50One of which also has an en suite.
0:28:55 > 0:28:58And by combining the separate toilet and bathroom,
0:28:58 > 0:29:01Will's ended up with a big family bathroom.
0:29:05 > 0:29:08And if that wasn't enough, moving the chimney breast
0:29:08 > 0:29:11and rejigging the layout slightly, he has created another
0:29:11 > 0:29:16bedroom in what is now a spacious, bang-up-to-date five-bedroom pad.
0:29:18 > 0:29:22But why did it take ten months more than he expected?
0:29:22 > 0:29:25It's been a lot of time because I've tried to juggle it with doing other jobs
0:29:25 > 0:29:29and I've just been here on weekends and brought the guys in for a week here, week there,
0:29:29 > 0:29:31couple of weeks here, big burn at the end.
0:29:31 > 0:29:34But, yeah, it's come out really nicely. From the gardens...
0:29:34 > 0:29:37Obviously landscaped all the back and the front.
0:29:37 > 0:29:40That's the chimney breast that has been recycled to make the front
0:29:40 > 0:29:43garden borders around the grass, actually, so we recycled what we can.
0:29:43 > 0:29:45To be honest - don't want to blow my own trumpet - I'm chuffed to bits.
0:29:45 > 0:29:49I think it might be the nicest house I've been in, let alone worked on.
0:29:49 > 0:29:53Well, he might well be chuffed about what he and his team have
0:29:53 > 0:29:57achieved here, but it's not for him, it's for his brother.
0:29:57 > 0:30:00So was he ever worried that his brother might not like it
0:30:00 > 0:30:03quite as much as he does?
0:30:03 > 0:30:06Not in the slightest, no. I was quite looking forward to showing it off to him.
0:30:06 > 0:30:09He's seen it at various stages throughout the build,
0:30:09 > 0:30:13and obviously at one stage, it was like a cave with bricks piled up
0:30:13 > 0:30:16and dirt and filth everywhere.
0:30:16 > 0:30:19I enjoy showing someone that
0:30:19 > 0:30:23and then bringing them back to this, and you can see the difference.
0:30:23 > 0:30:27This is the best bit - showing the end results.
0:30:27 > 0:30:29But, no, knocked his socks off. He loves it.
0:30:29 > 0:30:31Well, that's a relief.
0:30:31 > 0:30:35So, Will may have delivered the house his brother had hoped for.
0:30:35 > 0:30:36But at what cost?
0:30:38 > 0:30:42I'd say that the cost of the place,
0:30:42 > 0:30:46and all of the materials and work and fittings and things,
0:30:46 > 0:30:48we must be in for £300,000 by now.
0:30:50 > 0:30:52£300,000 all in
0:30:52 > 0:30:54seems like a pretty good deal to me,
0:30:54 > 0:30:57considering the size and finish of the house.
0:30:57 > 0:31:00Do two local estate agents agree?
0:31:01 > 0:31:04What I particularly like about the property,
0:31:04 > 0:31:06it's got an oldie-feel look about it from the outside,
0:31:06 > 0:31:08but when you come inside, it's contemporary, modern,
0:31:08 > 0:31:11and the standard of the finishings is excellent.
0:31:11 > 0:31:12It's very important
0:31:12 > 0:31:15that when using such good quality fixtures and fittings
0:31:15 > 0:31:18that it's matched with a very good finish as well.
0:31:18 > 0:31:21Here, this is a perfect example of that match.
0:31:21 > 0:31:24Not only was this property bought as a home,
0:31:24 > 0:31:27it was also bought as an investment.
0:31:27 > 0:31:31So has a project that cost around £300,000 been money well spent?
0:31:34 > 0:31:39In my opinion, the value of this property as it currently stands is £375,000.
0:31:39 > 0:31:42I would estimate a sales value of this property
0:31:42 > 0:31:46to be in the region of £350,000-£360,000.
0:31:46 > 0:31:49That's kind of where I was pitching it in my head.
0:31:49 > 0:31:53Um, it's a lovely house, and someone did want to buy it.
0:31:53 > 0:31:55Yeah, that's the sort of figure I was imagining.
0:31:55 > 0:31:57Yeah, kind of on a par.
0:31:57 > 0:32:02So, a potential pre-tax profit of between £50,000 and £75,000.
0:32:02 > 0:32:06Should Will's brother's naval career take him further afield
0:32:06 > 0:32:08and he has to let the house out,
0:32:08 > 0:32:10the agents thought rental figures
0:32:10 > 0:32:15of between £1,350 and £1,500 per calendar month should be possible,
0:32:15 > 0:32:19which would generate an annual yield of above 5%.
0:32:19 > 0:32:21So, hats off to Will.
0:32:21 > 0:32:25He's certainly done his brother proud. Now, what's next?
0:32:26 > 0:32:28Things are quietening down a bit.
0:32:28 > 0:32:32I've got a few projects now that I just need to finish off, but much smaller jobs.
0:32:32 > 0:32:34My brother's moving in on the weekend.
0:32:34 > 0:32:37Then my plan will be to fill my van with his sofas and bits and bobs
0:32:37 > 0:32:40and get them across here, get him settled in,
0:32:40 > 0:32:43and then drop the kids off so he can babysit for the weekend.
0:32:49 > 0:32:51The west London area of Kilburn was a place
0:32:51 > 0:32:53that was overlooked in the past,
0:32:53 > 0:32:57but with good transport links and desirable period property
0:32:57 > 0:32:59at comparatively affordable prices,
0:32:59 > 0:33:02Kilburn is in high demand.
0:33:02 > 0:33:04# This is the London
0:33:04 > 0:33:08# That belongs to me... #
0:33:08 > 0:33:12Seven minutes' walk from Kilburn tube station, and we are here.
0:33:12 > 0:33:16The lot itself is in this imposing 1930s block.
0:33:16 > 0:33:20It's got one bedroom, and it had a guide price of £200,000.
0:33:22 > 0:33:24This really is an enormous building,
0:33:24 > 0:33:26and this was one of my favourite eras.
0:33:29 > 0:33:31The lobby is just as I'd hoped,
0:33:31 > 0:33:34and the only downside is that the lift goes to the third floor,
0:33:34 > 0:33:38and I'm heading for the fourth floor, which is at the top.
0:33:41 > 0:33:43Oh, this is a fantastic hallway.
0:33:43 > 0:33:46You know, some people regard hallways as a waste of space,
0:33:46 > 0:33:49but I think they set up property beautifully,
0:33:49 > 0:33:52and this is a really good area.
0:33:52 > 0:33:55Loads of storage, which is quite unusual for a London flat.
0:33:55 > 0:33:58Look, there's more over here.
0:33:58 > 0:34:01You've got these lovely brass handles everywhere. Look at that!
0:34:01 > 0:34:04More storage! Look! I've never seen so much.
0:34:04 > 0:34:06It's got a certain character to it.
0:34:06 > 0:34:09You've got a kitchen here, which really has seen better days.
0:34:09 > 0:34:12You'd need to completely put some thought into that.
0:34:12 > 0:34:14But a fantastic skylight.
0:34:14 > 0:34:15Got a really nice-sized bedroom,
0:34:15 > 0:34:18a little bathroom, which needs to all be changed,
0:34:18 > 0:34:20and a living area.
0:34:20 > 0:34:22Now, this is wonderful. A great space.
0:34:22 > 0:34:25You've got nice proportions.
0:34:25 > 0:34:28I know your heating and hot water are included in this property.
0:34:28 > 0:34:31Look at this lovely old radiator. I'd like to restore that.
0:34:31 > 0:34:34The windows are not that fantastic, but they're functional.
0:34:34 > 0:34:36They do the job.
0:34:36 > 0:34:38But the best bit is, from here,
0:34:38 > 0:34:41I can see right the way across London to South Bank
0:34:41 > 0:34:44and, look - that is the London Eye.
0:34:44 > 0:34:45Can you see it?
0:34:45 > 0:34:51# The beauty in our London skies... #
0:34:52 > 0:34:56Oh, a great view indeed. You could plan a day out from here.
0:34:56 > 0:34:58Inside, the space is generous.
0:34:58 > 0:35:02It feels homely, and even the squeezed kitchen is bright enough
0:35:02 > 0:35:05with that skylight to be a pleasant place to cook.
0:35:05 > 0:35:09I'm liking this a lot, and I love the communal gardens out the back.
0:35:11 > 0:35:13As well maintained as the lobby,
0:35:13 > 0:35:16these fabulous gardens would be a lovely place
0:35:16 > 0:35:17to while away a sunny day,
0:35:17 > 0:35:21and a real luxury many Londoners can't afford.
0:35:21 > 0:35:24But there is a catch. There always is, isn't there?
0:35:27 > 0:35:30You should know by now that when it comes to property,
0:35:30 > 0:35:32you don't often get something for nothing.
0:35:32 > 0:35:36And in this case, the lovely communal areas, the lift,
0:35:36 > 0:35:40the garden - they all come with a hefty price tag.
0:35:40 > 0:35:42We're talking service charge,
0:35:42 > 0:35:45which is around £3,000 a year.
0:35:45 > 0:35:46That is huge.
0:35:46 > 0:35:50In fact, it's £250 a month to add on to your mortgage,
0:35:50 > 0:35:54your council tax, your bills and, without a shadow of a doubt,
0:35:54 > 0:35:57it will definitely put masses of buyers off.
0:35:59 > 0:36:02The heating and hot water is included in that service charge,
0:36:02 > 0:36:05and it is worth remembering that most flats
0:36:05 > 0:36:08come with a service charge of some description.
0:36:08 > 0:36:11It's just the size of this one that makes me wince.
0:36:11 > 0:36:13If you were planning to rent,
0:36:13 > 0:36:18there's your healthy yield disappearing down the plughole by a few per cent.
0:36:19 > 0:36:22Still, I think the flat has so many plus points.
0:36:25 > 0:36:30We asked a local estate agent along to see what he thought.
0:36:30 > 0:36:32It's one of the more popular blocks in the area.
0:36:32 > 0:36:35The common parts are almost immaculate.
0:36:35 > 0:36:36They are very nicely kept.
0:36:36 > 0:36:40There's off-street parking, albeit that there's only 31 spaces,
0:36:40 > 0:36:42I think, for serving 58 flats.
0:36:42 > 0:36:44And there are some lovely communal grounds as well
0:36:44 > 0:36:46for people to walk around in.
0:36:46 > 0:36:49The main negative, I have to say, is the service charge.
0:36:49 > 0:36:52It's disproportionate to the size of the flat. I believe it's £3,000.
0:36:52 > 0:36:55The lift only goes to the third floor,
0:36:55 > 0:36:59which means that a prospective buyer will then have to walk up another flight of stairs
0:36:59 > 0:37:02which, if they were buying the flat to get away from stairs,
0:37:02 > 0:37:04obviously is a huge disadvantage.
0:37:04 > 0:37:06Yes, I agree about those negatives,
0:37:06 > 0:37:10but I do still like the flat, guided at £200,000.
0:37:12 > 0:37:16The lease has nearly 150 years left, so no hassle there.
0:37:16 > 0:37:19But could it be a sensible investment?
0:37:19 > 0:37:22What could it fetch if it was refurbished for the resale market?
0:37:22 > 0:37:26If this flat was fully renovated and brought to the market today,
0:37:26 > 0:37:31I would bring it at an asking price of £295,000,
0:37:31 > 0:37:34and would hope to get in excess of £285,000.
0:37:34 > 0:37:35And a rental figure?
0:37:37 > 0:37:39If this flat was renovated,
0:37:39 > 0:37:41what price it would get per calendar month?
0:37:41 > 0:37:45I'd have thought comfortably between £1,100 and £1,200 per calendar month.
0:37:48 > 0:37:51That service charge will always cause you issues
0:37:51 > 0:37:53when you come to sell
0:37:53 > 0:37:56and eat into any rental profit you hope to achieve.
0:37:56 > 0:38:00And it will hold back the value of the flat itself.
0:38:00 > 0:38:02But it depends what you're willing to pay for,
0:38:02 > 0:38:05because this is a lovely block in a good area,
0:38:05 > 0:38:08which could be a great place to live.
0:38:08 > 0:38:10Let's see who liked it enough to go for it at the auction
0:38:12 > 0:38:16One-bed, purpose-built flat. Needs a bit of modernisation.
0:38:16 > 0:38:19- Who'd like to kick off? MAN:- 170.
0:38:19 > 0:38:23Yes! 170. 175.
0:38:23 > 0:38:26180. 185. 190.
0:38:26 > 0:38:29The bidding starts off frantically.
0:38:29 > 0:38:33We rejoin the action at £222,000,
0:38:33 > 0:38:37with one bidder out, and a new one in.
0:38:37 > 0:38:42222. 223. 224. 225.
0:38:44 > 0:38:48226. 227. 228.
0:38:48 > 0:38:50229. 230.
0:38:50 > 0:38:56The price keeps going up. We come back at £241,000.
0:38:56 > 0:38:58241.
0:38:58 > 0:39:01242, sir? Have a think.
0:39:01 > 0:39:04If not, 241. It's going at 241.
0:39:04 > 0:39:07First time. Second time.
0:39:07 > 0:39:10Third and last time. Are we all done?
0:39:10 > 0:39:12Sold - 241.
0:39:12 > 0:39:16And the successful bid of 241,000
0:39:16 > 0:39:18for the one-bed flat in Kilburn
0:39:18 > 0:39:20was made by Tariq.
0:39:23 > 0:39:25Tariq works in IT.
0:39:25 > 0:39:27He's a software designer, and he and a colleague
0:39:27 > 0:39:29like to dabble in property,
0:39:29 > 0:39:32though this is their first auction purchase.
0:39:35 > 0:39:38Tariq, congratulations. This is great news.
0:39:38 > 0:39:41So, tell me about this flat, why you wanted to buy it.
0:39:41 > 0:39:43It's the location. I used to live here.
0:39:43 > 0:39:45I know the area really well
0:39:45 > 0:39:47and I was always interested in buying a flat here,
0:39:47 > 0:39:52either for investment purposes or just as a project to turn around.
0:39:52 > 0:39:54So, are you looking for property for yourself to live in,
0:39:54 > 0:39:56or an investment opportunity?
0:39:56 > 0:39:58These are all investment opportunities.
0:39:58 > 0:40:00The household I'm living in, I'm happy.
0:40:00 > 0:40:02These are all... All my projects are for investments.
0:40:02 > 0:40:05You say all your projects. How many have you got on the go?
0:40:05 > 0:40:07I've got three on the go at the moment.
0:40:07 > 0:40:09What was it about this property you liked in particular?
0:40:09 > 0:40:11It's the location and the building.
0:40:11 > 0:40:14I've always liked this building. I've always liked the location.
0:40:14 > 0:40:18It's close to the Kilburn tube station. It's close to the city.
0:40:18 > 0:40:22So, it should attract the right type of investor
0:40:22 > 0:40:24or rental for people as well.
0:40:24 > 0:40:25I agree with Tariq.
0:40:25 > 0:40:28On the face of it, this is a great investment,
0:40:28 > 0:40:31but there is a massive elephant in the room here,
0:40:31 > 0:40:33and we need to address it.
0:40:33 > 0:40:36- Let's talk about the hefty service charge.- Yes.
0:40:36 > 0:40:40I think if I was renting it out, it would be difficult
0:40:40 > 0:40:43to figure out what is what,
0:40:43 > 0:40:47but at the moment, my initial plans are to turn it around
0:40:47 > 0:40:51and sell it back at either an auction or through an estate agent's.
0:40:51 > 0:40:55It's interesting you want to sell it back through an auction.
0:40:55 > 0:40:57It's a quick turnaround.
0:40:57 > 0:41:00I know that once this flat is done up,
0:41:00 > 0:41:03it's all brought back up-to-date,
0:41:03 > 0:41:05it will sell very quickly because of the location.
0:41:05 > 0:41:08- But let's talk about the price you paid at auction.- Yes.
0:41:08 > 0:41:12Most people like to get a bargain and sell it on at a profit.
0:41:12 > 0:41:15But for you to pay what you paid and then put it in an auction
0:41:15 > 0:41:16and hopefully get some profit,
0:41:16 > 0:41:19I'm a little bit worried that that would actually happen.
0:41:19 > 0:41:21Yeah, it's a risk.
0:41:21 > 0:41:26But in this area, if you look at the average one-bed, it's over 300,000,
0:41:26 > 0:41:30and we're not planning to spend more than 15,000 on this.
0:41:30 > 0:41:33Mmm, to sell this for 300,000,
0:41:33 > 0:41:37I reckon this flat's refurbishment needs to be of a high standard.
0:41:37 > 0:41:40I know Tariq and his property partners have experience,
0:41:40 > 0:41:41but I worry.
0:41:41 > 0:41:44Is £15,000 going to be enough?
0:41:45 > 0:41:47What are you going to do for your 15,000?
0:41:47 > 0:41:49Because, you know, it's fab as it is,
0:41:49 > 0:41:51but it does need to be taken to a certain level...
0:41:51 > 0:41:52- Sure.- ..to get that buyer.
0:41:52 > 0:41:58Well, we do a lot of blinging to our flats and apartments.
0:41:58 > 0:42:00- Most of my projects are like that.- Really?- Yes.
0:42:00 > 0:42:04- It's all hi-tech stuff coming in. - Wow.
0:42:04 > 0:42:10Solid flooring, lighting, et cetera. So we try out different ideas.
0:42:10 > 0:42:15It would really have to be a cut-price couture for £15,000.
0:42:15 > 0:42:19I know it's only a one-bed flat, but fancy gizmos, wooden floors
0:42:19 > 0:42:23and luxury finishes, they don't come cheap, not for 15 grand.
0:42:23 > 0:42:26Where is Tariq shopping? I want to know.
0:42:27 > 0:42:30However, the ambitious plans don't stop there.
0:42:32 > 0:42:38One option is to totally open-plan the kitchen areas that you've seen,
0:42:38 > 0:42:41the bedroom that you've seen, we want to just open-plan that out totally.
0:42:41 > 0:42:45We want to make this the bedroom, which is a very large bedroom.
0:42:45 > 0:42:48So, it would be one way of doing it.
0:42:48 > 0:42:52Also have an en suite from this bedroom into the bathroom,
0:42:52 > 0:42:56and also have a guest sort of toilet and basin in there.
0:42:56 > 0:42:59But this would then be a rather large bedroom.
0:42:59 > 0:43:00Yes, it would be a very large bedroom
0:43:00 > 0:43:03and, yeah, people like large bedrooms.
0:43:03 > 0:43:05You've got lots of storage space.
0:43:05 > 0:43:07But people like large living spaces more so, I feel.
0:43:07 > 0:43:10My hunch is that, you know, to have a living space here,
0:43:10 > 0:43:13with those views, that's really what you want to be looking at.
0:43:13 > 0:43:15That was my initial hunch when I walked into the flat
0:43:15 > 0:43:17for the first time when I was viewing,
0:43:17 > 0:43:19when they were doing the open days.
0:43:19 > 0:43:22- Yeah.- But now that I've had more time to mull over it,
0:43:22 > 0:43:27I'm quite 50-50 between moving this and making this into a bedroom
0:43:27 > 0:43:29and open-planning the other area.
0:43:29 > 0:43:31It's been so lovely to meet you today.
0:43:31 > 0:43:34I'm really excited to see which way you turn this flat around.
0:43:34 > 0:43:37- Are we in the lounge? Are we in the bedroom?- Sure. I don't know yet.
0:43:37 > 0:43:39- Not sure yet. - It's going to be interesting.- Sure.
0:43:39 > 0:43:42- Lovely to meet you. - Thank you very much.- Thank you.
0:43:42 > 0:43:46So, I understand Tariq wants to renovate and sell on,
0:43:46 > 0:43:47but back in an auction?
0:43:47 > 0:43:50I'm not sure it's the way to maximise profit.
0:43:50 > 0:43:54And also, I'm not sure what he should do with the layout either.
0:43:54 > 0:43:57It's a lovely flat, and it's just an interesting one.
0:43:57 > 0:44:00You can find out what happens later in the show.
0:44:03 > 0:44:07So, have our fearless developers emerged victorious?
0:44:07 > 0:44:09Or have they floundered in the shallow end?
0:44:09 > 0:44:11Time to find out.
0:44:13 > 0:44:15It was in the Lancashire town of Oldham
0:44:15 > 0:44:19where we first came across a three-bed terraced house
0:44:19 > 0:44:23which was, quite frankly, pretty together.
0:44:23 > 0:44:27Yes, it needed a new boiler, and there were the odd signs of damp.
0:44:27 > 0:44:30But it really just needed a general spruce up
0:44:30 > 0:44:33and would be good to go.
0:44:33 > 0:44:38It was bought sight-unseen by a retired local businessman, Ken.
0:44:38 > 0:44:42Well done, sir. I knew you'd get it.
0:44:42 > 0:44:45Ken used to manufacture rear-view mirrors for trucks,
0:44:45 > 0:44:50but there certainly was no looking back after his switch to property.
0:44:50 > 0:44:54He'd already bought six other properties for a rental portfolio
0:44:54 > 0:44:58and he didn't plan to hang about on property number seven either.
0:45:00 > 0:45:02What's the timescale for sorting it?
0:45:02 > 0:45:05- We want to get it done in about two and a half weeks.- Oh, wow.
0:45:05 > 0:45:08Two and a half weeks. Bing, bang, boom. Get it on the market.
0:45:08 > 0:45:11Yeah, get it on the market. Get it done up.
0:45:11 > 0:45:15Get it done up, and get it rented out, and get the money coming in.
0:45:15 > 0:45:18And Ken wasn't only hoping to get it turned around quickly -
0:45:18 > 0:45:25he planned also to get the work done on just a £2,000-£3,000 budget.
0:45:25 > 0:45:28Well, now, three weeks later, we're back
0:45:28 > 0:45:32to see if this really was bing, bang, boom.
0:45:32 > 0:45:33# Bing, bang, boom
0:45:37 > 0:45:39# Bing, bang, boom... #
0:45:39 > 0:45:43Let's just say, some subtle changes have taken place.
0:45:43 > 0:45:46# Bing, bang, boom... #
0:45:46 > 0:45:48New carpets, a fresh lick of paint
0:45:48 > 0:45:52and one or two other issues have been addressed.
0:45:52 > 0:45:53# And it's bing, bang, boom... #
0:45:55 > 0:45:57The first thing we had to do,
0:45:57 > 0:46:02there were a little bit of damp in the corner of the front room.
0:46:02 > 0:46:06When we investigated it, we found out that the drainpipe outside
0:46:06 > 0:46:10was broken, so we've replaced the drainpipe at the front.
0:46:10 > 0:46:15The gas fire - we've replaced the gas fire with an electric fire,
0:46:15 > 0:46:18because the gas fire was broken and irreparable.
0:46:18 > 0:46:20In the kitchen,
0:46:20 > 0:46:24we put a new boiler in, because the old boiler was also broken.
0:46:24 > 0:46:30We've had the whole house redecorated and painted,
0:46:30 > 0:46:33and we've had carpets laid throughout.
0:46:33 > 0:46:38So, troubleshooting done, the rest was just a sprucing-up exercise,
0:46:38 > 0:46:42with the bathroom cleaned and plans to install a shower curtain...
0:46:47 > 0:46:50..and the three bedrooms given a little lift
0:46:50 > 0:46:53with that new decor and carpets.
0:47:00 > 0:47:05- So, has Ken kept a careful eye on this one?- I wasn't here at all.
0:47:05 > 0:47:06I wasn't on-site at all.
0:47:06 > 0:47:09I've being in Spain for the last three weeks,
0:47:09 > 0:47:12so I only came back last Friday.
0:47:12 > 0:47:16So, today, really, this morning, was the first time I came to see it.
0:47:16 > 0:47:22But I have the person who looks after rent in my properties,
0:47:22 > 0:47:25he's been overseeing it on my behalf.
0:47:25 > 0:47:27# I'm the invisible man
0:47:27 > 0:47:28# I'm the invisible man... #
0:47:34 > 0:47:38Ah, so Ken disappeared to the sun while his team did the work.
0:47:38 > 0:47:40I have to say,
0:47:40 > 0:47:44the changes that have been made at the back are practically invisible.
0:47:44 > 0:47:46He has put some paint on the back wall,
0:47:46 > 0:47:47but it's slightly disappointing.
0:47:47 > 0:47:52Come on, Ken, pull out those weeds at least. It won't harm the budget.
0:47:52 > 0:47:56My original budget was about £2,500-£3,000.
0:47:56 > 0:48:02We actually came in at £3,010.
0:48:02 > 0:48:07So I'm quite happy to say we stuck within the budget.
0:48:07 > 0:48:10Well, sticking to his £3,000 budget
0:48:10 > 0:48:14and with the purchase price at auction of £65,000,
0:48:14 > 0:48:17Ken has got the house ready to let out
0:48:17 > 0:48:21on a total investment of £68,000 before taxes and fees.
0:48:21 > 0:48:26So, is that value for money? What did two local estate agents think?
0:48:27 > 0:48:31Yeah, I think it all looks quite spacious and freshened up
0:48:31 > 0:48:32and very neutral.
0:48:32 > 0:48:35It's a great buy-to-let property.
0:48:35 > 0:48:39It's been refurbished. Not a lot of work has been done to it.
0:48:39 > 0:48:42Redecorating, new floor coverings.
0:48:42 > 0:48:44But it's what it needed to freshen it up.
0:48:44 > 0:48:46What I would have done differently is possibly re-plastered
0:48:46 > 0:48:50some of the rooms, and concentrated more on the garden at the rear.
0:48:50 > 0:48:52I think I would've had a look at the bathroom.
0:48:52 > 0:48:55I think there were some opportunities to do that slightly differently.
0:48:55 > 0:48:58I think the bath will be off-putting to some people.
0:48:58 > 0:49:02Perhaps it might have made sense to put a shower in there
0:49:02 > 0:49:05rather than just leave that very small bath.
0:49:05 > 0:49:08I think perhaps a few more tweaks could have been done,
0:49:08 > 0:49:10but Ken was keen to keep his spend to a minimum
0:49:10 > 0:49:14and get on the rental market as quickly as possible.
0:49:14 > 0:49:19But if he were to sell, what return could he get on his £68,000 investment?
0:49:19 > 0:49:24We would expect it to achieve somewhere between £70,000-£75,000.
0:49:24 > 0:49:26To put this on the open market for sale,
0:49:26 > 0:49:30I would suggest a figure of around £75,000.
0:49:30 > 0:49:35Yeah, I felt, you know, it could be between £70,000-£75,000.
0:49:35 > 0:49:39We've always bought the house to rent anyway, rather than sell
0:49:39 > 0:49:43so, yeah, I'm quite OK with £70,000.
0:49:44 > 0:49:47Yes, I think a potential £2,000-£7,000 pre-tax profit
0:49:47 > 0:49:50isn't going to change Ken's mind.
0:49:50 > 0:49:52It's definitely all about rental.
0:49:55 > 0:49:57In the current rental market,
0:49:57 > 0:50:00we would expect it to achieve £450 per calendar month.
0:50:00 > 0:50:03I would suggest, on the rental market, it could achieve
0:50:03 > 0:50:07around £450-£475 per calendar month.
0:50:07 > 0:50:11I think the rentals being quoted are on the lower side
0:50:11 > 0:50:15and I'm sure that we can achieve £525 per calendar month.
0:50:15 > 0:50:20Achieving even the lowest figure of £450 per calendar month
0:50:20 > 0:50:24would still see a healthy yield of around 8%. Not bad.
0:50:24 > 0:50:29So, is the plan to continue to grow his rental portfolio?
0:50:30 > 0:50:33Well, I rent six properties at the minute.
0:50:33 > 0:50:35I'm getting a good income off the six properties,
0:50:35 > 0:50:38so I'd like to bring a little bit of money back in.
0:50:38 > 0:50:43So, I think the next property, I will probably look at
0:50:43 > 0:50:46trying to buy, do it up and sell the next property,
0:50:46 > 0:50:47rather than rent it,
0:50:47 > 0:50:50and hopefully make some money on a resale.
0:50:53 > 0:50:56So, a cheap and cheerful fix could be all you need.
0:50:56 > 0:50:58But back in Kilburn, London,
0:50:58 > 0:51:02this one-bed flat needed a bit more bling.
0:51:02 > 0:51:07It was bought for £241,000 by software designer Tariq.
0:51:07 > 0:51:10The flat was in a really stylish '30s block,
0:51:10 > 0:51:12but it was a bit tired and dated,
0:51:12 > 0:51:15and more than that, well, a little out of fashion.
0:51:15 > 0:51:20Yet Tariq had just a £15,000 budget to bring it up-to-date.
0:51:20 > 0:51:22What are you going to do for your 15,000?
0:51:22 > 0:51:25Because it does need to be taken to a certain level...
0:51:25 > 0:51:26- Sure.- ..to get that buyer.
0:51:26 > 0:51:32Well, we do a lot of blinging to our flats and apartments.
0:51:32 > 0:51:34- Most of my projects are like that. - Really?- Yes.
0:51:34 > 0:51:37- All hi-tech stuff coming in.- Wow.
0:51:37 > 0:51:40Solid flooring, lighting, et cetera.
0:51:40 > 0:51:43So, we try out different ideas.
0:51:43 > 0:51:47And that £15,000 wasn't going to just bring in the bling,
0:51:47 > 0:51:51it was also going to be used for some potential layout changes.
0:51:51 > 0:51:54It seemed mighty ambitious on such a tight budget,
0:51:54 > 0:51:57and Tariq had a fast turnaround planned,
0:51:57 > 0:52:00hoping to put his blingtastic flat
0:52:00 > 0:52:03back into auction in just a few weeks.
0:52:05 > 0:52:08Three months later, we're back to see
0:52:08 > 0:52:11whether Tariq managed to pull it off.
0:52:25 > 0:52:29Wow. There certainly is a touch of bling.
0:52:36 > 0:52:39And I have to say, I'm glad to see the basic layout hasn't changed.
0:52:39 > 0:52:43So what influenced his decision there?
0:52:43 > 0:52:46Because of the lease conditions and the restrictions on the lease,
0:52:46 > 0:52:49as well as the complications of the pipework over here,
0:52:49 > 0:52:53we decided to leave the flat as it was, the layout as it was.
0:52:53 > 0:52:57It would have been nice to have a mini bathroom and an en suite,
0:52:57 > 0:52:59but in the scheme of things
0:52:59 > 0:53:01and the timelines that we were working to,
0:53:01 > 0:53:04it wasn't the right thing to do.
0:53:04 > 0:53:07No structural changes meant he had money to spend
0:53:07 > 0:53:11on the finishing touches, which might not be to everybody's taste.
0:53:11 > 0:53:14The bathroom has been overhauled.
0:53:14 > 0:53:20Everything is new here - tiling, flooring, sink, toilet, bathroom.
0:53:20 > 0:53:22We've put some special mosaic in.
0:53:22 > 0:53:24It's brought it up-to-date.
0:53:24 > 0:53:28So, it's been totally redone. It's got an overhead shower.
0:53:28 > 0:53:30We've also put a water pump in to make sure
0:53:30 > 0:53:33we get good pressure, cos we're on the top floor.
0:53:33 > 0:53:36Yeah, that's pretty much it, really.
0:53:36 > 0:53:40The bling in the bathroom is complemented by the swish new kitchen.
0:53:41 > 0:53:45We've put granite worktops, we've put granite tiles,
0:53:45 > 0:53:48we've put a customised kitchen, all integrated appliances.
0:53:48 > 0:53:53We've even put an induction hob and had an electrician come in
0:53:53 > 0:53:55and run it for the day just to work out
0:53:55 > 0:53:57how much electricity it's going to use.
0:53:57 > 0:53:59It works out to be less than a pound
0:53:59 > 0:54:00if you run it for six hours a day.
0:54:00 > 0:54:03So, we've made it economical to run as well,
0:54:03 > 0:54:07rather than just doing the flat up and that's it.
0:54:07 > 0:54:11This flat comes with a £3,000 service charge
0:54:11 > 0:54:13and it's on the fourth floor of the block,
0:54:13 > 0:54:16where the lift only goes to the third floor,
0:54:16 > 0:54:18leaving a hike up the stairs.
0:54:18 > 0:54:21So Tariq really needs to make the flat worth that effort.
0:54:21 > 0:54:25I think he's done that, and I think it will now attract buyers
0:54:25 > 0:54:27and tenants on the open market.
0:54:27 > 0:54:29But Tariq had other plans.
0:54:32 > 0:54:34The plan was originally to put it back into auction
0:54:34 > 0:54:36just to turn it around quickly.
0:54:36 > 0:54:40Subsequently, I've had a change of mind
0:54:40 > 0:54:42and to give the market a chance.
0:54:42 > 0:54:46So I've had a few agents come in and value the place.
0:54:46 > 0:54:53It's on with multiple agents. I'm quite confident it will sell.
0:54:53 > 0:54:56Yes, I think this is a more sensible approach,
0:54:56 > 0:55:01but his budget went from his planned 15,000 to £18,000.
0:55:01 > 0:55:05Having purchased the flat for 241,000,
0:55:05 > 0:55:12Tariq has invested a total of £259,000, without costs and fees.
0:55:12 > 0:55:15So has he brought enough bling to make the cash tills ring?
0:55:15 > 0:55:19What do two local property experts think?
0:55:19 > 0:55:23The selling point of this property is, number one, fantastic location.
0:55:23 > 0:55:27Close to all local amenities, shops, transport links very, very good.
0:55:27 > 0:55:33Also it's a very good size, very spacious, and very well refurbished.
0:55:33 > 0:55:37The flat's very nice and modern. Very light and airy.
0:55:37 > 0:55:40Good for a young couple to move into and enjoy.
0:55:40 > 0:55:43Bathroom finished to a very high standard.
0:55:43 > 0:55:47Integrated, all brand-new, very, very nice.
0:55:47 > 0:55:50Yes, it's completely ready to go.
0:55:50 > 0:55:53It's not Tariq's preferred option,
0:55:53 > 0:55:57but what kind of rental figures could this flat now command?
0:55:57 > 0:56:03For rentals, I think you would achieve £1,200 per calendar month.
0:56:03 > 0:56:06The current rental valuation for this property at the moment
0:56:06 > 0:56:10would be somewhere in the region of £1,400-£1,500 per calendar month.
0:56:10 > 0:56:13What I expected. It's in the range what I expected.
0:56:13 > 0:56:15I've had similar valuations myself.
0:56:15 > 0:56:20I know if I was going to rent it, it will go for £1,400.
0:56:20 > 0:56:24In fact, I have interested parties already at £1,400 to rent it out.
0:56:24 > 0:56:27I've always done this with all of my properties,
0:56:27 > 0:56:31lining people up just in case I change my mind at the last minute.
0:56:31 > 0:56:34Not a bad plan, and that approach,
0:56:34 > 0:56:37with £1,400 per calendar month,
0:56:37 > 0:56:41taking into consideration that three grand service charge,
0:56:41 > 0:56:45would still net an annual yield above 5%.
0:56:45 > 0:56:50But more importantly, how would Tariq's £259,000 investment do
0:56:50 > 0:56:52on the current resale market?
0:56:54 > 0:56:57Put this property on the market at the moment for sale,
0:56:57 > 0:57:00it should achieve somewhere in the region of £325,000.
0:57:00 > 0:57:03I would market the property at £315,000
0:57:03 > 0:57:08and expect to achieve offers between 310,000 and 315,000.
0:57:08 > 0:57:11Extremely pleased that the valuations have come in that range.
0:57:11 > 0:57:14That's what I wanted, and that's what I was expecting.
0:57:14 > 0:57:19So it's good to get that validation. It will be good to get it sold now.
0:57:20 > 0:57:24Tariq has the flat on with five agents at present,
0:57:24 > 0:57:27and if he gets anywhere near the agent's valuation,
0:57:27 > 0:57:30he could potentially see a pre-tax profit
0:57:30 > 0:57:34of between £51,000 and £66,000.
0:57:34 > 0:57:37So what's next for Tariq? Onwards and upwards?
0:57:37 > 0:57:39Something similar to this.
0:57:39 > 0:57:43If I can find something similar in this area.
0:57:43 > 0:57:45I won't go out into different areas that I don't know.
0:57:45 > 0:57:47I'll stick to what I know
0:57:47 > 0:57:50and do probably the same formula.
0:57:52 > 0:57:55Well, that's it for today's show. Not enough for you?
0:57:55 > 0:57:57Well, there's plenty more.
0:57:57 > 0:58:00So make sure you join us next time for Homes Under The Hammer.
0:58:00 > 0:58:02- We'll see you then. - Goodbye.- Goodbye.