0:00:00 > 0:00:05Hello. People get involved in developing for all sorts of reasons.
0:00:05 > 0:00:08To create somewhere to live
0:00:08 > 0:00:10or work in, or maybe to do up and sell.
0:00:10 > 0:00:14The main concern is about getting value for money.
0:00:14 > 0:00:16So how do we go about doing that?
0:00:16 > 0:00:20One way could be to buy your next home under the hammer.
0:00:45 > 0:00:48Well, you really do need to do your background research
0:00:48 > 0:00:49before you buy at auction.
0:00:49 > 0:00:53But once you've done that, you could get yourself a real bargain.
0:00:53 > 0:00:58So here's a sneaky peek at the properties that went under the hammer on today's show.
0:00:59 > 0:01:02This Surbiton semi suits me.
0:01:02 > 0:01:04My family just come in through the front door
0:01:04 > 0:01:06and dump all their stuff.
0:01:06 > 0:01:08So when you see a space like this, it makes me very happy.
0:01:09 > 0:01:15This ground floor flat in Jarrow, Tyne on Wear, has a rather harrowing problem.
0:01:15 > 0:01:17Dah-dah-dah! Damp.
0:01:19 > 0:01:24Whereas this 1980s property in Derby should be a safer bet.
0:01:24 > 0:01:26Given the age of the property,
0:01:26 > 0:01:29hopefully not too many nasties to discover.
0:01:30 > 0:01:32All these properties have been sold at auction.
0:01:32 > 0:01:35We'll find out who bought them and what they paid for them
0:01:35 > 0:01:37when they went under the hammer.
0:01:37 > 0:01:39Sold at 121.
0:01:42 > 0:01:44MUSIC: Theme to The Good Life
0:01:44 > 0:01:46And so to Surbiton, Surrey,
0:01:46 > 0:01:51spiritual home to those stalwarts of suburbia, Tom, Barbara, Jerry and Margot.
0:01:53 > 0:01:56But will today's property be semi-ready for the good life?
0:01:56 > 0:01:58Or semi-derelict?
0:02:00 > 0:02:02A mile or so from Surbiton
0:02:02 > 0:02:05and the classic suburban semi-detached theme continues.
0:02:05 > 0:02:10Although this area is known as Berrylands. Sounds idyllic, doesn't it?
0:02:10 > 0:02:15Well, if being close to fast rail links to London and the 1930s is your thing,
0:02:15 > 0:02:18then you'll be in seventh heaven because that's what you've got.
0:02:18 > 0:02:25Oh, and the A3 at the end of your road. Handy. A little noisy though!
0:02:25 > 0:02:27ROAR OF TRAFFIC
0:02:34 > 0:02:38So that's one negative of the property I've come to see today.
0:02:38 > 0:02:42A three-bed semi which had a guide price of 245,000.
0:02:42 > 0:02:46Well, a nice big wide hallway.
0:02:46 > 0:02:49Look at that. I know I'm always banging on about it,
0:02:49 > 0:02:51but my family just come in through the front door
0:02:51 > 0:02:53and dump all their stuff.
0:02:53 > 0:02:56So when you see a space like this, it makes me very happy.
0:02:56 > 0:02:59You've got loads of lovely storage here, which is great.
0:02:59 > 0:03:02A little picture rail to put your posh plates on.
0:03:02 > 0:03:06Through here, the kitchen, which is quite spacious for a 1930s house.
0:03:06 > 0:03:08A reception room to the front,
0:03:08 > 0:03:11although you'd need to replace that double glazing
0:03:11 > 0:03:14because it'll be a bit noisy with the A3 at the end of the road.
0:03:14 > 0:03:18And at the back of the property your second reception room or your dining room.
0:03:18 > 0:03:21You have an option here. I know what I'd do if this was my house.
0:03:21 > 0:03:24I think I would knock this wall down.
0:03:24 > 0:03:27Because I'd like to have one big open space.
0:03:27 > 0:03:29You've got your kitchen area.
0:03:29 > 0:03:31Have a nice big family table
0:03:31 > 0:03:33and a lovely view of the garden.
0:03:33 > 0:03:37You'll need to replace these or update them with something more modern.
0:03:37 > 0:03:42But overall, this has got the makings of a really nice family home.
0:03:45 > 0:03:47With this lovely garden at the back,
0:03:47 > 0:03:49there's the obvious potential of extending out there.
0:03:49 > 0:03:51But let's take a look upstairs.
0:03:52 > 0:03:54There's a good sized double at the front,
0:03:54 > 0:03:56the smallest single next door,
0:03:56 > 0:03:58and another decent double at the rear.
0:03:58 > 0:04:02There's a separate loo next to a rather big bathroom.
0:04:04 > 0:04:07Hmm. Perhaps even too big.
0:04:07 > 0:04:11Now, what about combining the loo and the bathroom,
0:04:11 > 0:04:13to make it one big space,
0:04:13 > 0:04:15put a wall up here, doorway.
0:04:15 > 0:04:17And you could call this bedroom three.
0:04:17 > 0:04:21Then you'd have three really nice size bedrooms for a family.
0:04:21 > 0:04:22I think that would work.
0:04:22 > 0:04:27And you could put the bathroom over the hallway in the very small room.
0:04:27 > 0:04:30Now, you need to think about plumbing and drainage,
0:04:30 > 0:04:34but if you're going to go the whole hog with this house and do it all up anyway,
0:04:34 > 0:04:37that is definitely something I would consider doing.
0:04:38 > 0:04:42It's a family sized house with a family garden in a family area.
0:04:42 > 0:04:45But as you could only fit a single bed in one of the bedrooms,
0:04:45 > 0:04:47you'd struggle once the kids got a bit older.
0:04:49 > 0:04:52With that re-jig, you'd extend the life span of the house
0:04:52 > 0:04:55which would certainly be cheaper than moving.
0:04:55 > 0:04:57But what about adding more space?
0:04:57 > 0:04:58Could that make money for you?
0:04:58 > 0:05:01Well, there are a few ways you could go.
0:05:02 > 0:05:06Option one, you could just refurbish the house as it is.
0:05:06 > 0:05:09Option two, you could extend that ground floor.
0:05:09 > 0:05:12Or, option three, go much further
0:05:12 > 0:05:16by extending on the ground floor and adding a fourth bedroom in the loft.
0:05:17 > 0:05:20So which would be the smartest choice for a developer
0:05:20 > 0:05:22seeking to make a healthy profit?
0:05:22 > 0:05:24We asked a local property expert
0:05:24 > 0:05:26for his thoughts.
0:05:29 > 0:05:32You've got the potential to go out to the side, and room out the back.
0:05:32 > 0:05:36Plus the loft. It could be a fourth bedroom and en-suite on there.
0:05:36 > 0:05:41So the demand for four-bed houses is higher than a three-bed house.
0:05:41 > 0:05:44So extending the property could prove worthwhile.
0:05:44 > 0:05:46But how do the figures add up?
0:05:46 > 0:05:50Bearing in mind that the guide price was 245,000,
0:05:50 > 0:05:53what could the place fetch on the resale market?
0:05:54 > 0:05:57If you were to do the property up to a high standard,
0:05:57 > 0:05:59without extending the property,
0:05:59 > 0:06:03you'd be looking in the region of 370 to £375,000.
0:06:03 > 0:06:06If the property was to be extended out to the side,
0:06:06 > 0:06:08a full width extension out the back
0:06:08 > 0:06:10and into the loft to create a fourth bedroom,
0:06:10 > 0:06:13you'd be looking in the region of 450,000.
0:06:14 > 0:06:16Now, that's interesting.
0:06:16 > 0:06:20Snap this one up close to that £245,000 guide price
0:06:20 > 0:06:22and there's money to be made here,
0:06:22 > 0:06:24whether or not you extend.
0:06:24 > 0:06:27You just have to weigh up how much time and money
0:06:27 > 0:06:29you really want to spend on the renovation.
0:06:31 > 0:06:33But what about potential rental valuations?
0:06:36 > 0:06:42As a three-bedroomed property, you'd be looking in the region of 1,600 to 1,700 per calendar month.
0:06:42 > 0:06:46If the property was extended and made into a fourth bedroom,
0:06:46 > 0:06:51you'd be looking in the region of 2,000 to 2,200 per calendar month.
0:06:51 > 0:06:56This is a great house with the chance to make it better and bigger
0:06:56 > 0:06:59if you fancy, with some cash in it to boot.
0:06:59 > 0:07:01Let's see who went for it at the auction.
0:07:04 > 0:07:07Lot five. Three-bed semi.
0:07:07 > 0:07:09Who'd like to kick off on this?
0:07:11 > 0:07:14200? OK. 200. How much?
0:07:14 > 0:07:15Ten. 15.
0:07:16 > 0:07:1820. 25.
0:07:18 > 0:07:2030.
0:07:20 > 0:07:22235.
0:07:22 > 0:07:23240.
0:07:23 > 0:07:25245.
0:07:25 > 0:07:29The bidding quickly passed the £245,000 guide price.
0:07:29 > 0:07:33We rejoin the action at 313,000.
0:07:33 > 0:07:36313. 314.
0:07:36 > 0:07:38315.
0:07:38 > 0:07:40316.
0:07:40 > 0:07:41317.
0:07:42 > 0:07:43318.
0:07:43 > 0:07:45319.
0:07:45 > 0:07:47320.
0:07:49 > 0:07:50Well done. 320.
0:07:50 > 0:07:52321.
0:07:53 > 0:07:55320 with you.
0:07:55 > 0:07:58Anyone else? At 320,000.
0:07:58 > 0:08:00First time, second time,
0:08:00 > 0:08:02third and last time. Have you all done?
0:08:03 > 0:08:06Sold 320. Well done.
0:08:06 > 0:08:08That successful bid was placed by Ahmed,
0:08:08 > 0:08:10right against the wall in a pink shirt.
0:08:11 > 0:08:13He's originally from Baghdad
0:08:13 > 0:08:15and has been developing properties in the UK
0:08:15 > 0:08:17since year 2000.
0:08:18 > 0:08:21He used to own a Surbiton estate agency.
0:08:21 > 0:08:25He bought the semi for 320,000,
0:08:25 > 0:08:28a whopping 75 grand over the guide price.
0:08:28 > 0:08:32Did he get rather carried away with this very popular lot?
0:08:34 > 0:08:36- Ahmed, congratulations. - Thank you, Lucy.
0:08:36 > 0:08:39- You've got the house.- Yes. - How much research did you do?
0:08:39 > 0:08:44Uh, not much for this house in particular.
0:08:44 > 0:08:47But I know the area, and I didn't need to do the research.
0:08:47 > 0:08:50I know what houses, three bedrooms, four bedrooms, sell for.
0:08:50 > 0:08:54How was it on auction day for you? Did you pay what you wanted to pay?
0:08:54 > 0:08:56No, I did not, unfortunately.
0:08:56 > 0:08:59I went over my maximum.
0:08:59 > 0:09:01You went over your maximum?
0:09:01 > 0:09:02- Yes.- Why did you do that?
0:09:02 > 0:09:05I was carried away, basically!
0:09:05 > 0:09:08I felt the heat. I wanted the house.
0:09:08 > 0:09:11I thought I paid too much.
0:09:11 > 0:09:13Came back, did the research,
0:09:13 > 0:09:16and in fact, I got it for the market value.
0:09:16 > 0:09:19At the end of the day, it worked good.
0:09:19 > 0:09:23- Were you quite cross with yourself after the auction?- Very much so!
0:09:23 > 0:09:25Very. It's not for the money as such,
0:09:25 > 0:09:28it's more for losing the discipline.
0:09:28 > 0:09:32# It was the heat of the moment
0:09:33 > 0:09:36# Telling me what my heart meant
0:09:36 > 0:09:39# The heat of the moment
0:09:39 > 0:09:42# Showed in your eyes #
0:09:44 > 0:09:46As well as owning an estate agency,
0:09:46 > 0:09:50Ahmed has spent time in Canada and Belgium developing properties
0:09:50 > 0:09:53and has been back in the for the past three years.
0:09:53 > 0:09:56He now works full time for himself, turning properties around.
0:09:56 > 0:09:59So, having overspent on buying this one,
0:09:59 > 0:10:02how much does he plan to spend on the renovation?
0:10:03 > 0:10:06There are two different budgets depending on the work.
0:10:06 > 0:10:13The first plan I have is to convert the loft plus a rear extension.
0:10:13 > 0:10:15And a garage conversion as well.
0:10:15 > 0:10:17Plus all the refurbishment.
0:10:17 > 0:10:20That would take me to my first budget.
0:10:20 > 0:10:22I'm hoping 70 will do it.
0:10:22 > 0:10:24- So that's the full works. - Full works.
0:10:24 > 0:10:28- 70 grand.- If I do just a rear extension,
0:10:28 > 0:10:32garage conversion, plus total refurbishment, sort of high spec,
0:10:32 > 0:10:38I might in a way get the same margin with the loft conversion.
0:10:38 > 0:10:40So now I'm in two different worlds.
0:10:40 > 0:10:43One go the loft conversion and the other one not.
0:10:43 > 0:10:46OK. What's the budget for plan B, for not going in the loft.
0:10:46 > 0:10:48- How much are you going to spend? - Uh, 40.
0:10:48 > 0:10:53What I would say on that is that you have two really good sized bedrooms and a really small bedroom.
0:10:53 > 0:10:58I think if you can move the bathroom, and put it in the small room
0:10:58 > 0:11:01you can create a nice big bedroom where the bathroom is,
0:11:01 > 0:11:05then, perhaps, you might not need to have to think about doing the loft conversion.
0:11:05 > 0:11:07Exactly. Spot on.
0:11:07 > 0:11:11What we have in the plan now is exactly what you said.
0:11:11 > 0:11:15So we'll be putting the family bathroom, with or without the loft conversion,
0:11:15 > 0:11:16I'm going ahead with it.
0:11:16 > 0:11:20However, at the back of my head,
0:11:20 > 0:11:23it's saying, "You should go for the loft conversion." We'll see!
0:11:23 > 0:11:26Ahmed has never done a loft conversion before.
0:11:26 > 0:11:29So with little, if any, extra money to be made on that,
0:11:29 > 0:11:32I think it's best he saves that experience
0:11:32 > 0:11:35for when it can pay off more handsomely than on this project.
0:11:35 > 0:11:38I reckon plan B is the way to go.
0:11:38 > 0:11:41That extension to the rear and sides
0:11:41 > 0:11:43plus re-jigging the upstairs layout.
0:11:43 > 0:11:45He aims to get it done in four to six months
0:11:45 > 0:11:47with that 40 grand budget,
0:11:47 > 0:11:50ending in that super-modern high-spec finish.
0:11:50 > 0:11:52But he's not doing it all by himself!
0:11:52 > 0:11:56Helping him on the project will be his two sons, eight-year-old Arthur
0:11:56 > 0:11:58and Aidan, who's six.
0:11:58 > 0:12:01No doubt they plan to follow in Dad's footsteps!
0:12:02 > 0:12:06I think they love it. They absolutely adore the property development.
0:12:06 > 0:12:11This whole thing. I have to admit, they're not helping whatsoever!
0:12:11 > 0:12:15Half an hour, ten minutes. If I'm lucky it's half an hour!
0:12:15 > 0:12:18- "Dad, I'm bored now!" - "Dad, let's go."
0:12:18 > 0:12:20But then I give them that.
0:12:20 > 0:12:23They always sit with me to look at the plans.
0:12:23 > 0:12:26Whether it's at the property or at home in my office,
0:12:26 > 0:12:28they will sit with me and go through the plans.
0:12:28 > 0:12:31They will try to draw as well.
0:12:31 > 0:12:35- So it's very good.- You never know. - They're involved heavily with the design.
0:12:35 > 0:12:36Whenever I buy things,
0:12:36 > 0:12:40they will look, "No, Dad, we don't like this. We don't like that."
0:12:40 > 0:12:43- It's good.- Some good advice there from some little men.
0:12:43 > 0:12:45- Yes.- It's been lovely meeting you today.
0:12:45 > 0:12:47- Thank you, Lucy.- Good luck with this.- Thanks a lot.
0:12:47 > 0:12:52- Thank you. I can't wait to see the outcome. Well done.- Thank you very much. Thanks a lot.
0:12:52 > 0:12:57So, normally disciplined Ahmed did overspend on this place.
0:12:57 > 0:13:01But he can still pull it back and pocket some profit if he's careful.
0:13:01 > 0:13:05You can find out what plan he goes with later in the show.
0:13:09 > 0:13:14This is Jarrow, in the Tyne and Wear area or north-east England.
0:13:16 > 0:13:19I'm right by the entrance to the Tyne Tunnel.
0:13:19 > 0:13:22A lot of the housing in this area
0:13:22 > 0:13:26was compulsory purchased to make way for the tunnel and the surrounding roads.
0:13:26 > 0:13:32But what's left has been benefitting from some really good regeneration
0:13:32 > 0:13:34that's gone on in recent years.
0:13:35 > 0:13:38The first toll tunnel under the River Tyne
0:13:38 > 0:13:41was completed in 1967.
0:13:41 > 0:13:44The second tunnel in 2011.
0:13:44 > 0:13:46It connects North Shields to Jarrow
0:13:46 > 0:13:47on the south bank of the river.
0:13:48 > 0:13:53Well, walking distance from Jarrow town centre is the property I'm here to see.
0:13:53 > 0:13:56And it's a two-bedroomed flat
0:13:56 > 0:13:58in this terrace here.
0:14:01 > 0:14:06The ground floor flat originally had a guide price of 25,000.
0:14:06 > 0:14:09But this was reduced to just £10,000 on auction day.
0:14:14 > 0:14:15So...
0:14:16 > 0:14:18What do we have?
0:14:18 > 0:14:20A little entrance area there.
0:14:20 > 0:14:22I'd want to see an internal door on here.
0:14:22 > 0:14:25Gives a bit of insulation from the cold.
0:14:25 > 0:14:27But straightaway it's got a nice feel to it.
0:14:27 > 0:14:32Big high ceilings, a few original features like that archway there for instance.
0:14:32 > 0:14:37And through into what is basically, I guess, one of the bedrooms.
0:14:37 > 0:14:40It's two bedrooms, so surprisingly spacious.
0:14:40 > 0:14:45But something which isn't good or nice at all
0:14:45 > 0:14:51virtually every wall, it seems, has got problems with - dah-dah-dah...
0:14:51 > 0:14:52damp.
0:14:55 > 0:14:57Not good.
0:14:57 > 0:14:59Not good at all.
0:14:59 > 0:15:00Hmm.
0:15:01 > 0:15:03The room may be a fair size,
0:15:03 > 0:15:06but unfortunately, every wall has damaged plaster.
0:15:06 > 0:15:09A second bedroom down the hall has the same problem.
0:15:09 > 0:15:12Two rooms in and all I can see is one thing.
0:15:27 > 0:15:30Then at the back of the flat is the main living area.
0:15:30 > 0:15:32And more trouble!
0:15:34 > 0:15:37Oh, dear. And it carries on in here as well.
0:15:37 > 0:15:38It's quite unusual.
0:15:38 > 0:15:43Normally, internal walls don't get that much damp problem,
0:15:43 > 0:15:45but you can even feel it.
0:15:45 > 0:15:48Holy mackerel. That's not brilliant.
0:15:48 > 0:15:51And as you can see, it looks to me like the joists and the floor itself
0:15:51 > 0:15:53have been affected by that.
0:15:53 > 0:15:57And already... I banged on that a bit hard, but that would go through.
0:15:57 > 0:16:01It's not good. You need to take all this out and investigate what's going on.
0:16:01 > 0:16:07If the joists have gone, it won't be cheap to get that sorted. That's all manual stuff.
0:16:07 > 0:16:10And that's after you've solved the initial problem,
0:16:10 > 0:16:12which is probably rising damp.
0:16:12 > 0:16:15But again, nice sized rooms.
0:16:15 > 0:16:17You can't complain about the size of this place.
0:16:17 > 0:16:21And it gets better because I imagine originally, the house would have finished here.
0:16:21 > 0:16:26But it's had this nice-sized extension put on at the back.
0:16:26 > 0:16:27A kitchen...
0:16:27 > 0:16:29Er...
0:16:30 > 0:16:33No question where this is going. In the skip!
0:16:33 > 0:16:38But it's a good size. And at the back there, a loo and bathroom.
0:16:38 > 0:16:42So all in all, lots and lots of space.
0:16:42 > 0:16:43Very deceptive from the front.
0:16:44 > 0:16:46But budget-wise,
0:16:46 > 0:16:50a big chunk of it's going to be spent sorting out the basics.
0:16:50 > 0:16:53I can see this bathroom joining the kitchen in that skip.
0:16:53 > 0:16:57So far, it's only the generous proportions
0:16:57 > 0:16:58that are selling points for this place.
0:17:00 > 0:17:05Even if the size of the back yard can't match the interior,
0:17:05 > 0:17:08at least a bit of a spruce up out here could make it more attractive.
0:17:08 > 0:17:11But let's focus on the main problem here.
0:17:12 > 0:17:14So, what's causing all this damp?
0:17:14 > 0:17:17Well, it's the usual suspects.
0:17:17 > 0:17:19For instance, downpipe here.
0:17:19 > 0:17:22You can see it's straight onto the pavement
0:17:22 > 0:17:25but more importantly onto this bit of the property
0:17:25 > 0:17:29there's some cement filling missing from that
0:17:29 > 0:17:31so water getting in that way.
0:17:31 > 0:17:34Coming up to the windows, you can see they are well shot.
0:17:34 > 0:17:38Water getting in there, behind there, not good news.
0:17:38 > 0:17:43At some stage, it seems the property has had some injection damp-proofing
0:17:43 > 0:17:48put in. These little plugs, where they drill the holes and squirt the chemical in,
0:17:48 > 0:17:51they put those in afterwards, so that indicates that's happened.
0:17:51 > 0:17:55It's obviously failed. When it comes to this injection damp-proofing,
0:17:55 > 0:17:57it often comes with a long guarantee.
0:17:57 > 0:17:59Sometimes life-time, sometimes 25 years.
0:17:59 > 0:18:03Often that is passed on to the new owner of the property.
0:18:03 > 0:18:07So if I bought this place I'd look to see if I could trace who did this
0:18:07 > 0:18:10and see if there's still a guarantee that's valid.
0:18:10 > 0:18:13Sort those things out. No problem, really(!)
0:18:14 > 0:18:16Despite all that damp,
0:18:16 > 0:18:20this has not turned the place into a damp squib.
0:18:20 > 0:18:22I like the proportions of this house
0:18:22 > 0:18:26and the enormity of the damp issue does seem to be reflected
0:18:26 > 0:18:29in that revised guide price of just £10,000.
0:18:31 > 0:18:34We asked a local estate agent for her opinion
0:18:34 > 0:18:37on the prospects for this two-bed ground floor flat.
0:18:39 > 0:18:43It's very much a typical Tyneside flat. Not everybody understands
0:18:43 > 0:18:45Tyneside flats are built as uni-flats,
0:18:45 > 0:18:47so it's never been converted.
0:18:47 > 0:18:49It was built as a flat.
0:18:49 > 0:18:51It's spacious, it's got high ceilings
0:18:51 > 0:18:53and well-proportioned rooms.
0:18:53 > 0:18:56Could this property make a solid return for an investor?
0:18:56 > 0:19:03This property could rent for between 395 and £425 per calendar month.
0:19:03 > 0:19:05And if sold on?
0:19:05 > 0:19:10I would value this for between 55 and £60,000.
0:19:11 > 0:19:16So, a few problems with this one mostly caused by that damp.
0:19:16 > 0:19:18The rest of it, just a general refurbishment
0:19:18 > 0:19:21which you might normally expect in this kind of place.
0:19:21 > 0:19:23However, for the guide price,
0:19:23 > 0:19:25I really like this. It's a good one.
0:19:25 > 0:19:28Let's see who bought it when it went under the hammer.
0:19:31 > 0:19:37Lot number two. We've got it advertised there with a price guide of £25,000.
0:19:37 > 0:19:41However, they've reduced it and I can actually start at £10,000.
0:19:41 > 0:19:43I need £10,000. We're here to sell.
0:19:43 > 0:19:46In the back door, 10,000. Do I have 12 anywhere else?
0:19:46 > 0:19:48£12,000. 14.
0:19:48 > 0:19:5014 bid. 16.
0:19:50 > 0:19:5118.
0:19:51 > 0:19:5320. 22?
0:19:53 > 0:19:55I'll take one if it'll help.
0:19:56 > 0:19:5821 bid. New bid at 21. 22?
0:19:58 > 0:20:01Not yet. 22. 22 bid.
0:20:01 > 0:20:0223?
0:20:02 > 0:20:05500? 22 and a half bid.
0:20:05 > 0:20:0723. 23 and a half?
0:20:08 > 0:20:0924?
0:20:09 > 0:20:12£24,000. Do I have anything else?
0:20:12 > 0:20:1524,250 bid. 24 and a half?
0:20:15 > 0:20:1724 and a half. 24,750?
0:20:18 > 0:20:2124 and a half. Right in the centre. I'm selling at 24 and a half.
0:20:21 > 0:20:23I'm going once at 24 and a half.
0:20:23 > 0:20:26I'm going for the second time at £24,500.
0:20:28 > 0:20:33That final successful bid of 24,500 was made by Paul.
0:20:34 > 0:20:38He's a Jarrow-based property developer and landlord
0:20:38 > 0:20:42who has bid and bought at auction several times before.
0:20:42 > 0:20:44I met him, along with his wife, Angie,
0:20:44 > 0:20:48back at their latest purchase to find out why they bought this flat.
0:20:49 > 0:20:50Angie, Paul. Great to meet you both.
0:20:50 > 0:20:53- And you.- Congratulations.
0:20:53 > 0:20:55So, why did you want to buy this?
0:20:55 > 0:20:59- Really, just to add another property to our existing portfolio.- Right.
0:20:59 > 0:21:04Extend on that. We're concentrating on this street in particular just now.
0:21:04 > 0:21:07Concentrating on this street? Not even this area?
0:21:07 > 0:21:10- No. I have four properties in this street.- Right.
0:21:10 > 0:21:17We want to develop it to a good standard and encourage the area to prosper and grow.
0:21:17 > 0:21:20- Well done.- I'm actually from this area.- Right.
0:21:20 > 0:21:24Being actually born and bred on this estate has made a big difference
0:21:24 > 0:21:28- to why we want to put something back into the area now.- Right.
0:21:28 > 0:21:31- Tell me more.- We started doing this in 2005.
0:21:31 > 0:21:33We just wanted to progress from there.
0:21:33 > 0:21:35- Right.- So everything's just grown.
0:21:35 > 0:21:38- So you grew up in the area, very close by?- Oh, yes.
0:21:38 > 0:21:45Our original street where I lived was the first to get knocked down for the Tyne Tunnel development.
0:21:45 > 0:21:49It's great to meet someone who wants to put something back into the area
0:21:49 > 0:21:51where he was born and raised.
0:22:00 > 0:22:02It's not all about altruism, though.
0:22:02 > 0:22:06Good quality properties mean you can choose good tenants
0:22:06 > 0:22:08who look after your investment.
0:22:08 > 0:22:10That's just wise business sense,
0:22:10 > 0:22:12which Paul appears to have in spades.
0:22:12 > 0:22:16Is his wife, Angie, a nurse, equally business-minded?
0:22:17 > 0:22:21What attracted you into this property world, Angie, in the first place?
0:22:21 > 0:22:24Well, it was Paul's idea, really.
0:22:24 > 0:22:29He's the one that likes to take a gamble. I'm a bit more conservative about things.
0:22:29 > 0:22:33He just kept saying, "Come on, we need to take a chance."
0:22:33 > 0:22:37And we started off with one property and I remember going in and signing for it,
0:22:37 > 0:22:40and thinking, "Is this the right thing? No, I'm scared."
0:22:40 > 0:22:47And now, 20 properties down the line, we're just keeping on going.
0:22:47 > 0:22:53There's no stopping him. He gets one, does it up and moves on. And gets another one.
0:22:53 > 0:22:56At what number of properties did it become full time, do you think?
0:22:56 > 0:22:58- Ten.- Ten.
0:22:58 > 0:23:02- What were you doing before that? - I used to work in the chemical plant industry.- Right. OK.
0:23:02 > 0:23:04So this is a complete change.
0:23:04 > 0:23:09Do you get involved in the housing projects at all?
0:23:09 > 0:23:11Not quite so much now.
0:23:11 > 0:23:14Because Paul's doing it full time now and we've got so many of them.
0:23:14 > 0:23:18But certainly originally when we bought number one and number two,
0:23:18 > 0:23:22I was there helping, doing the tiling of the bathrooms and kitchens.
0:23:22 > 0:23:27- First-class tiler.- Really? - I like that sort of thing. I like getting stuck in.
0:23:27 > 0:23:30Angie still has a full-time job,
0:23:30 > 0:23:33so she's not hands-on with the refurbishments any more.
0:23:33 > 0:23:35But while doing most of the work himself,
0:23:35 > 0:23:40Paul will still call on the specialist trades like the electrics and plastering.
0:23:40 > 0:23:43And sorting out that major damp problem.
0:23:43 > 0:23:48- All the walls are going to be removed back to the original brickwork.- Right.
0:23:48 > 0:23:53Brickwork injected, treated, and a new cement membrane on top of that.
0:23:53 > 0:23:58How about that's affected the joists and the floorboards and things?
0:23:58 > 0:24:01In here there are several rotten joists now.
0:24:01 > 0:24:04We'll have to lift the floors and find the true extent of the damage.
0:24:04 > 0:24:06Replace all the damaged joists
0:24:06 > 0:24:11- and treat, because another big problem here is woodworm.- Really?
0:24:11 > 0:24:13Yes!
0:24:13 > 0:24:15I've been in quite a few of these properties
0:24:15 > 0:24:18and some of them, you can't take one step in front of another
0:24:18 > 0:24:21- for areas collapsing.- Right.
0:24:21 > 0:24:24- So you'll be spraying it to be on the safe side.- Oh, yes.
0:24:24 > 0:24:27The whole floor will be gutted and renovated.
0:24:27 > 0:24:30Paul reckons on a £12,000 budget for the job
0:24:30 > 0:24:34plus a sensible contingency fund of £2,000
0:24:34 > 0:24:36in case there are any more hidden horrors.
0:24:36 > 0:24:38And the timescale?
0:24:38 > 0:24:41- We'd normally do it in four to six weeks.- Right.
0:24:41 > 0:24:44- But we'll have to go between six and eight.- Right.
0:24:44 > 0:24:47- Just because of personal events coming up.- Right.
0:24:47 > 0:24:51We've got two sons. One's turning 21 and one's turning 18.
0:24:51 > 0:24:54- Oh, wow! Major party time. - A busy year.- Major party time.
0:24:54 > 0:24:55It's a busy time of the year.
0:24:55 > 0:24:57Congratulations, both of you.
0:24:57 > 0:25:01- And I look forward to seeing how you get on.- Thank you.- Thank you.
0:25:03 > 0:25:07So, another house on this street for Paul and Angie.
0:25:07 > 0:25:10It's really nice that one of their driving forces
0:25:10 > 0:25:12is to improve the area.
0:25:12 > 0:25:15Giving something back. We always like that.
0:25:15 > 0:25:16How will they get on with this place?
0:25:16 > 0:25:18Hopefully not too much of an issue.
0:25:18 > 0:25:21The floors sound like a problem, though.
0:25:21 > 0:25:23Find out how they got on later in the show.
0:25:25 > 0:25:27Coming up: there could be trouble out back
0:25:27 > 0:25:30at this 1980s Derby semi.
0:25:30 > 0:25:34I really don't like the way it's very close to the house.
0:25:35 > 0:25:37In Jarrow, Tyne and Wear,
0:25:37 > 0:25:41Angie is chuffed with all her husband Paul's hard graft.
0:25:42 > 0:25:44I think Paul's done an absolutely amazing job with it.
0:25:46 > 0:25:48But first, in Surbiton,
0:25:48 > 0:25:52Ahmed and his team have thoroughly enjoyed renovating this property.
0:25:52 > 0:25:54It's a wonderful project. We've all loved it.
0:25:59 > 0:26:03Back now to Surrey, and this 1930s three-bed Surbiton semi
0:26:03 > 0:26:07which Ahmed bought at auction for 320,000,
0:26:07 > 0:26:1075 grand over the guide price.
0:26:12 > 0:26:16He used to be an estate agent, but now spends his time developing properties.
0:26:16 > 0:26:20This one presented plenty of options for improvement.
0:26:20 > 0:26:27The first plan I have is to convert the loft, plus a rear extension.
0:26:27 > 0:26:29And a garage conversion.
0:26:29 > 0:26:31I'm hoping 70 will do it.
0:26:31 > 0:26:35- So that's the full works. - Full works.- 70 grand.- Yeah.
0:26:35 > 0:26:37If I do just the rear extension,
0:26:37 > 0:26:39garage conversion,
0:26:39 > 0:26:42plus total refurbishment, high spec.
0:26:42 > 0:26:45What's the budget for plan B, for not going in the loft.
0:26:45 > 0:26:47- How much are you going to spend?- 40.
0:26:47 > 0:26:51However, in the back of my head,
0:26:51 > 0:26:54you should go perhaps for the loft conversion. We'll see!
0:26:54 > 0:26:57With not much to be gained in the profit stakes
0:26:57 > 0:27:01for the more complex option, Ahmed was battling between his heart and his head.
0:27:01 > 0:27:04His heart won out at the auction.
0:27:04 > 0:27:06So three months after our first visit,
0:27:06 > 0:27:09we're back to see if his head has won this time.
0:27:12 > 0:27:17For starters, the front of the house has been freshened up with a lick of paint.
0:27:17 > 0:27:20A new driveway's been added, and it looks like Ahmed has done
0:27:20 > 0:27:23one of his big changes, with a garage conversion.
0:27:23 > 0:27:27Inside, and the living room has been transformed
0:27:27 > 0:27:32with soft, neutral tones and the warm feel of hardwood flooring.
0:27:32 > 0:27:35The hall has been made more inviting in the same style,
0:27:35 > 0:27:38as has the new room in the former garage.
0:27:38 > 0:27:42And out back you can see big change number two,
0:27:42 > 0:27:46because it's in this new extension that we find the real wow factor.
0:27:49 > 0:27:51And wow is the right word,
0:27:51 > 0:27:54with a wonderful, stylish contemporary kitchen installed.
0:27:56 > 0:28:00The old dining room also leads into the extension
0:28:00 > 0:28:02which has created a great space that works well for Ahmed.
0:28:06 > 0:28:08This is the rear extension.
0:28:08 > 0:28:11It's a three metres by seven metres width.
0:28:11 > 0:28:15It's my favourite room in the house. It worked out really nice.
0:28:15 > 0:28:19A newly fitted high standard kitchen with integrated appliances.
0:28:19 > 0:28:22We have enough space for a dining table
0:28:22 > 0:28:26and I think it's a big selling feature for this property.
0:28:27 > 0:28:30And I'm glad to see that great minds think alike here,
0:28:30 > 0:28:34as Ahmed has changed the upstairs layout just as I suggested,
0:28:34 > 0:28:37converting the old toilet and bathroom into a bedroom.
0:28:40 > 0:28:44And the boxroom has now become the new bathroom
0:28:44 > 0:28:46beautifully fitted and ultra modern.
0:28:48 > 0:28:51The two original bedrooms have been totally refurbished
0:28:51 > 0:28:53and now just ooze style.
0:28:57 > 0:29:00But in the end, it looks like Ahmed has not gone for the biggest change of all.
0:29:01 > 0:29:05I haven't done the loft conversion, based on budget.
0:29:05 > 0:29:10I realised the budget would increase if I went ahead with the loft conversion.
0:29:10 > 0:29:15And I might not get my money back if I sell the property.
0:29:15 > 0:29:17I would have loved to do it,
0:29:17 > 0:29:20however, I would never have stayed with the budget.
0:29:21 > 0:29:24I'm pleased to hear that, unlike at the auction,
0:29:24 > 0:29:28Ahmed didn't get carried away. The results certainly speak for themselves.
0:29:28 > 0:29:32He project managed with his regular team of tried and trusted builders.
0:29:32 > 0:29:35But he's not afraid to get his hands dirty.
0:29:38 > 0:29:41If I have time, I'm always with the builders and the workers.
0:29:41 > 0:29:44I could do, more or less, pretty much everything.
0:29:44 > 0:29:48For example, this house, I did all the carpentry myself.
0:29:48 > 0:29:51Fitting the kitchens, tiling.
0:29:53 > 0:29:58It's a cracking renovation, with a great standard of finish both inside and out.
0:29:59 > 0:30:02The garden has been stripped down and tidied up
0:30:02 > 0:30:03and a new patio added.
0:30:05 > 0:30:09Ahmed has good reason to be very proud of the finished article.
0:30:09 > 0:30:11I love it. I'm delighted with it.
0:30:11 > 0:30:17It's one of those projects we worked on, not a single problem, not in the slightest.
0:30:17 > 0:30:19The team were very happy to work here.
0:30:19 > 0:30:22The neighbours were brilliant.
0:30:22 > 0:30:24It was a wonderful project. We all loved it.
0:30:24 > 0:30:27The whole project had been problem free.
0:30:27 > 0:30:31In all, the renovation took Ahmed just three months.
0:30:31 > 0:30:34Well within his four to six month timescale.
0:30:34 > 0:30:37But how did that £40,000 loft-free budget fare?
0:30:37 > 0:30:41More or less I'm with the £40,000.
0:30:41 > 0:30:43I would say £45,000.
0:30:43 > 0:30:48And the extra 5,000 actually went towards the kitchen.
0:30:48 > 0:30:50Plus the driveway.
0:30:50 > 0:30:56But then, five grand for what we've done, over that budget, I don't think is bad.
0:30:58 > 0:31:01Add to that Ahmed's original purchase price
0:31:01 > 0:31:02of 320,000
0:31:02 > 0:31:07and his total outlay here is £365,000.
0:31:07 > 0:31:13So, what do two local estate agents think of this latest addition to the property market?
0:31:14 > 0:31:17The changes that have been made have been excellent.
0:31:17 > 0:31:19The owner has done a great job in the finish of the kitchen,
0:31:19 > 0:31:21the bathroom and the extension
0:31:21 > 0:31:24and it's ideal for current families in the area.
0:31:24 > 0:31:27It's been nicely renovated.
0:31:27 > 0:31:31It's neutral decor, which is what everybody wants these days,
0:31:31 > 0:31:33a nice open plan kitchen.
0:31:33 > 0:31:34They've thought it out very well.
0:31:34 > 0:31:36So, what could Ahmed get for the house?
0:31:36 > 0:31:41Bearing in mind his £365,000 total investment here,
0:31:41 > 0:31:43what could he sell it for?
0:31:43 > 0:31:49In the current market, it could on for between £415,000 to £425,000.
0:31:49 > 0:31:54It would achieve anything in the region of 440 to £450,000.
0:31:54 > 0:31:59Pre-tax and expenses, those valuations could make Ahmed a handsome profit
0:31:59 > 0:32:02of between 50 and 85,000.
0:32:02 > 0:32:05After just four months work, that's amazing.
0:32:06 > 0:32:13Yes, not bad at all. I think sort of within what I expected.
0:32:13 > 0:32:17The estate agents also reckon that should Ahmed decide to let the property,
0:32:17 > 0:32:24he could achieve between 1,650 and £2,100 per calendar month,
0:32:24 > 0:32:26giving him a possible annual yield
0:32:26 > 0:32:28of between 5.5 and 7 per cent.
0:32:28 > 0:32:30Wow.
0:32:30 > 0:32:31Excellent plan B!
0:32:31 > 0:32:35But for now, Ahmed is sticking with plan A, selling the property on,
0:32:35 > 0:32:38which, with those potential profits is tempting.
0:32:38 > 0:32:41But there's also a plan C on the cards.
0:32:41 > 0:32:46Ahmed has started to eye up the house as a possible home for himself and his family.
0:32:50 > 0:32:54Where we live now, we have planning permission to extend the house
0:32:54 > 0:32:55which will double its size.
0:32:55 > 0:32:59It's a big project which could take over a year.
0:32:59 > 0:33:03This house, being local to where I live in Cobham,
0:33:03 > 0:33:08would be ideal for us to live temporarily till we finish the work
0:33:08 > 0:33:11and then move back to Cobham again.
0:33:16 > 0:33:20Today, I'm about two and a half miles from Derby city centre
0:33:20 > 0:33:25in a leafy suburb which gets its name from the oak wood which originally covered the area,
0:33:25 > 0:33:27part of which is now a nature reserve.
0:33:42 > 0:33:44Today, I'm in the Oakwood area of Derby,
0:33:44 > 0:33:49a popular suburb which grew up around the 1970s and 1980s.
0:33:49 > 0:33:52As I said, very popular. Good schools, good local facilities, et cetera.
0:33:52 > 0:33:56And not too far to Derby itself if that's where you happen to work.
0:33:56 > 0:33:58This is the property I'm here to see.
0:33:58 > 0:34:00A classic property of the era.
0:34:00 > 0:34:03Two-bedroomed semi-detached.
0:34:03 > 0:34:06Had a guide price of £80,000. Let's take a look.
0:34:08 > 0:34:13Okey-dokey, the mock Tudor facade may not be to everyone's liking,
0:34:13 > 0:34:15but it's not that bad really.
0:34:15 > 0:34:19There's off street parking and a quick strim of the front lawn
0:34:19 > 0:34:21would give instant kerb appeal.
0:34:24 > 0:34:30Well, given the age of the property, hopefully not too many nasties to discover.
0:34:30 > 0:34:33Through the front door, a little porch area. Somewhere to hang your coat.
0:34:33 > 0:34:36Keep the draughts out. And then into your main living area.
0:34:36 > 0:34:40Very much open plan room. Stairs up to the bedrooms there.
0:34:40 > 0:34:46Pretty much white throughout, apart from this, a feature fireplace area.
0:34:46 > 0:34:51I actually like that. It breaks the room up and it's reasonably pleasant.
0:34:51 > 0:34:53It's in not too bad condition.
0:34:53 > 0:34:55A bit of wear and tear here and there.
0:34:55 > 0:34:58But one room which you could definitely spend some money on
0:34:58 > 0:35:01and very sensibly too, is here in the kitchen.
0:35:01 > 0:35:04For a start, the boiler's probably ready to be replaced.
0:35:04 > 0:35:10The kitchen units are probably the original ones that were put in and they're showing their age.
0:35:10 > 0:35:13So spend a couple of thousand here getting it up to spec.
0:35:13 > 0:35:16It's a nice sized room, a door out onto the back garden,
0:35:16 > 0:35:20a bit of space for a kitchen table there.
0:35:20 > 0:35:22A nice family room
0:35:22 > 0:35:25and definitely one I'd spend some money on.
0:35:28 > 0:35:35Ah, yes, the 1980s. When this little house was built and kitted out, tastes were certainly different!
0:35:35 > 0:35:37But it's light, bright and plain,
0:35:37 > 0:35:40and there's a decent amount of space down here,
0:35:40 > 0:35:42even if the decor is dated.
0:35:42 > 0:35:46Who knows? Maybe the upstairs will be a bit more 21st century.
0:35:47 > 0:35:50So, upstairs. What are we going to find?
0:35:50 > 0:35:52Any surprises? Well, no.
0:35:52 > 0:35:58But that whole feeling of a house that really hasn't had any major updating
0:35:58 > 0:36:00since it was built carries on.
0:36:00 > 0:36:03Look at the carpet. This hasn't been replaced for a while.
0:36:03 > 0:36:07Slightly larger bedroom at the front, a smaller one at the back.
0:36:07 > 0:36:09Bathroom. Look at that.
0:36:09 > 0:36:11What colour would you call that?
0:36:11 > 0:36:14Whatever, I don't think it's necessarily 2012
0:36:14 > 0:36:16so a white bathroom suite in there.
0:36:16 > 0:36:19Some nice tiling.
0:36:19 > 0:36:21Just simple things like replace these doors.
0:36:21 > 0:36:24I mean, those are not to everyone's taste.
0:36:24 > 0:36:27And it's little things, it really is.
0:36:27 > 0:36:31How much to re-carpet this place? Not a lot. New bathroom, new kitchen, not a lot.
0:36:31 > 0:36:33To replace the doors, again,
0:36:33 > 0:36:34it's tiny stuff
0:36:34 > 0:36:39it would absolutely transform the initial wow factor when you walked into this house.
0:36:41 > 0:36:45I really do think this property could look pretty respectable
0:36:45 > 0:36:47with a little hard work.
0:36:54 > 0:36:57And it wouldn't necessarily take loads of money.
0:37:00 > 0:37:04Well, at the rear of the property, there's a nice enough garden.
0:37:04 > 0:37:05But first of all, you've got to get to it.
0:37:05 > 0:37:07You have to fight through this bush.
0:37:07 > 0:37:11You might just think, "Just yank that out and that's the end of it."
0:37:11 > 0:37:15The trouble is, I really don't like the way it's very close to the house.
0:37:15 > 0:37:19Who knows what kind of damage that has already done
0:37:19 > 0:37:23even at that height, to the foundations or the drains.
0:37:23 > 0:37:26There's a drain where you can see a bit of cracking going on there.
0:37:26 > 0:37:29So that's bad. Get it out.
0:37:29 > 0:37:32But out here you really get the sense that this is a 1980s house
0:37:32 > 0:37:37that hasn't had that updating to include things like double glazing.
0:37:37 > 0:37:40So that's something to factor in to your rebuild.
0:37:40 > 0:37:43But all in all, a fairly standard,
0:37:43 > 0:37:46pretty easy to sort out property, I would say.
0:37:48 > 0:37:52So, what did the auctioneer who sold this two-bed property think of it
0:37:52 > 0:37:55with its guide price of £80,000?
0:37:57 > 0:38:01First impressions are this is a typical first-time buyers property.
0:38:01 > 0:38:03It was built for that purpose.
0:38:03 > 0:38:06So it's probably now a bit dated, a bit tired,
0:38:06 > 0:38:08and ready for a re-fit.
0:38:08 > 0:38:10Well, if bought as an investment,
0:38:10 > 0:38:14how easily would you be able to let this and for how much?
0:38:14 > 0:38:19I think once renovated, this would have a rental value of towards £500 per calendar month.
0:38:20 > 0:38:23What price could it achieve on the resale market
0:38:23 > 0:38:25once brought up to standard?
0:38:27 > 0:38:30These two-bedroomed semi-detached houses have a ceiling value
0:38:30 > 0:38:33of probably up to £120,000.
0:38:33 > 0:38:35They used to be more, when the market was better,
0:38:35 > 0:38:37but that's today's price.
0:38:38 > 0:38:44So a property that would make a good home or a potential buy-to-let investment.
0:38:44 > 0:38:50I like the area and the house itself just needs updating and getting rid of a few bits and pieces
0:38:50 > 0:38:51from the garden!
0:38:51 > 0:38:54Find out who bought it when it went to auction.
0:38:54 > 0:38:56Lot number 60.
0:38:56 > 0:38:59Needs a bit of upgrading and improvement.
0:38:59 > 0:39:0085 to start, this one?
0:39:00 > 0:39:0285 I have, thank you.
0:39:02 > 0:39:04At £85,000. 86.
0:39:04 > 0:39:0786. 87? 87.
0:39:07 > 0:39:0988.
0:39:09 > 0:39:1289. 90,000. 91.
0:39:12 > 0:39:1392.
0:39:13 > 0:39:16The tussle for the semi continued
0:39:16 > 0:39:19and we rejoin the bidding at 105,500.
0:39:19 > 0:39:22£105,500.
0:39:22 > 0:39:25106. 500.
0:39:26 > 0:39:28107? 107.
0:39:28 > 0:39:30500.
0:39:31 > 0:39:34£107,500.
0:39:34 > 0:39:35Once.
0:39:35 > 0:39:37Twice.
0:39:37 > 0:39:39Third opportunity. Any higher bid?
0:39:40 > 0:39:42Sold at 107 and a half.
0:39:42 > 0:39:45The final bid of £107,500
0:39:45 > 0:39:49was made by full-time property developer and landlord, Martin.
0:39:52 > 0:39:58Martin and his wife Julia used to be teachers, but they fell in love with property and switched careers.
0:39:58 > 0:40:00I met them back at the house to find out more.
0:40:02 > 0:40:05- Martin, Julia, great to meet you both.- And you.
0:40:05 > 0:40:08Congratulations. Tell me why you wanted to buy this place.
0:40:08 > 0:40:12Well, we've bought a few for rental before,
0:40:12 > 0:40:14so this it just adding to the others we've got.
0:40:14 > 0:40:16Well done. How many have you got?
0:40:16 > 0:40:20- Nine.- Nine.- How long has that taken you to build up?
0:40:20 > 0:40:27- We've had two a while. But the last seven, we've bought in the last 12 months.- Wow.
0:40:27 > 0:40:32What was it that pushed you to make that first purchase? That's always the hardest.
0:40:32 > 0:40:36We were teachers, and we wanted to get out, really.
0:40:36 > 0:40:38So it was part of the escape plan!
0:40:45 > 0:40:49Julia was the head of a primary school and Martin was the supply teacher.
0:40:49 > 0:40:53It takes a lot of nerve to give up a secure job like teaching,
0:40:53 > 0:40:54so why the change?
0:40:56 > 0:41:00People have got this perception of teachers that you leave at half past three
0:41:00 > 0:41:03and it's all holidays. And it's not like that.
0:41:03 > 0:41:05- No.- It's not like that at all.
0:41:05 > 0:41:08And I'd been doing it for 20 years and thought, "I've got to change now
0:41:08 > 0:41:11"otherwise I'll be teaching till I retire."
0:41:11 > 0:41:15Let's fast forward to 2012. How many years later?
0:41:15 > 0:41:18- Seven?- Seven years later.- And a portfolio of nine properties.
0:41:18 > 0:41:20- Yes.- Are they paying the wages?
0:41:20 > 0:41:25They are. The idea is at some point we'll get the income we got from teaching.
0:41:25 > 0:41:28We're not there yet, but that's the plan.
0:41:29 > 0:41:33Clearly this duo have achieved high marks for property so far.
0:41:33 > 0:41:36But let's see if they can do better.
0:41:36 > 0:41:39What made them put this place top of the class?
0:41:39 > 0:41:43- We have to admit, we hadn't looked inside it before we bought it. - What?!
0:41:44 > 0:41:48Though in our defence, we had researched the area.
0:41:48 > 0:41:52- Oh, that's all right, then(!) - We'd looked at 20 we didn't want.
0:41:52 > 0:41:55There was this one and another one down the road.
0:41:55 > 0:41:57It was the lot before.
0:41:57 > 0:42:00And we'd looked through the window, round the back.
0:42:00 > 0:42:03It wasn't much of a surprise, other than the nice chimney breast.
0:42:03 > 0:42:07- Right. You read the legal pack, though?- We did read it, yes.
0:42:07 > 0:42:10And is the idea that this goes into the rental portfolio?
0:42:10 > 0:42:15Yes. It's in a really good area. It's a popular rental area.
0:42:15 > 0:42:20We're not daft enough to buy any old property without looking in.
0:42:20 > 0:42:26We did research the area and - sounds lame - we knew this was a good area for rental.
0:42:26 > 0:42:29OK. Still not going to let you off, but...
0:42:31 > 0:42:36Detention for both of them. But at least they did do their homework on the area.
0:42:36 > 0:42:38The couple are keen to crack on
0:42:38 > 0:42:40and are giving themselves two to three months
0:42:40 > 0:42:43to get the property ready for the rental market.
0:42:45 > 0:42:48Talk me through what you're going to do to his place to sort it out.
0:42:48 > 0:42:52New carpets, new kitchen, new bathroom.
0:42:52 > 0:42:55Take the water tank out of the airing cupboard
0:42:55 > 0:42:57and replace the boiler with a combi-boiler.
0:42:57 > 0:43:01- Redecorate. New windows. Sort the garden out.- Right.
0:43:01 > 0:43:04Not quite sure about that.
0:43:04 > 0:43:07There's various plans ranging from leaving it
0:43:07 > 0:43:11to digging it out and replastering it.
0:43:11 > 0:43:13OK. How much of the work do you do yourself?
0:43:13 > 0:43:17On this, it shouldn't be too bad. Painting and decorating and things like that.
0:43:17 > 0:43:20- What about kitchen and bathroom fitting?- We'll do that, yep.
0:43:20 > 0:43:24- OK. So that can keep the costs down. - Yeah, it helps to keep costs down.
0:43:24 > 0:43:25The overall budget for the work?
0:43:25 > 0:43:29- We think 7,500 should be enough. - Yeah.
0:43:29 > 0:43:31- Good luck with it. Congratulations. - Thank you.
0:43:31 > 0:43:33- Look forward to seeing how you go on.- Thank you.
0:43:34 > 0:43:37Well, Martin and Julia are breaking the cardinal rule
0:43:37 > 0:43:40and not looking at this place before they bought it.
0:43:40 > 0:43:42However, I think they have done OK
0:43:42 > 0:43:46and it will fit in well with their expanding property portfolio.
0:43:46 > 0:43:47And it just goes to show
0:43:47 > 0:43:51if you're committed to it, you can make it happen.
0:43:51 > 0:43:53Think about it.
0:43:53 > 0:43:56Join us later in the show to find out how they got on.
0:43:59 > 0:44:02It's been a while now since we last saw those properties.
0:44:02 > 0:44:04Has all the time and money been well spent?
0:44:04 > 0:44:07Let's go back and find out.
0:44:09 > 0:44:12It's back now to the Tyne and Wear area and the town of Jarrow
0:44:12 > 0:44:16where we first met Paul, a landlord and property developer
0:44:16 > 0:44:18and his wife Angie, a staff nurse.
0:44:18 > 0:44:20Together since 2005,
0:44:20 > 0:44:23they've built up a rental portfolio of 20 properties.
0:44:23 > 0:44:25Now they've added another.
0:44:25 > 0:44:27This two-bed ground floor flat
0:44:27 > 0:44:30which they bought for 24,500.
0:44:31 > 0:44:34It's the fifth property they own on this very street.
0:44:34 > 0:44:38Paul has a bigger picture in mind when it comes to the renovation involved.
0:44:39 > 0:44:44- I'm actually from this area.- Right. - Being born and bred on this estate
0:44:44 > 0:44:49- has made a big difference to why we want to put something back into the area.- Right.
0:44:49 > 0:44:52It's great that Paul and Angie want to put something back into the area.
0:44:52 > 0:44:54This place certainly needed help
0:44:54 > 0:44:59because despite its spaciousness, there were serious damp issues to contend with.
0:44:59 > 0:45:02Plus the possibility of woodworm lurking under the floorboards.
0:45:03 > 0:45:09Paul reckoned that a £12,000 budget with a £2,000 contingency fund
0:45:09 > 0:45:12and a six to eight week timescale should do the job.
0:45:14 > 0:45:16Just six weeks later,
0:45:16 > 0:45:19and the front of the house has had a bit of a facelift
0:45:19 > 0:45:22with a new front door and double-glazed windows.
0:45:25 > 0:45:29and inside, as expected, there's been some major replastering
0:45:29 > 0:45:32with the front bedroom undergoing a refurbishment
0:45:32 > 0:45:35which, by the look of it, is still drying out.
0:45:37 > 0:45:41It's the same story for the second bedroom down the hall.
0:45:43 > 0:45:47And the main living room has also had the same treatment.
0:45:49 > 0:45:51There's a new kitchen installed at the rear of the house
0:45:51 > 0:45:54ready and waiting for some cooking to get underway.
0:45:56 > 0:45:59The bathroom has been gutted and a new suite fitted.
0:46:02 > 0:46:05It looks like a solid renovation,
0:46:05 > 0:46:09which is more than can be said for the state of the original plasterwork.
0:46:10 > 0:46:14It was found out that the original damp course had been faulty.
0:46:14 > 0:46:17There weren't the correct coatings
0:46:17 > 0:46:20and the walls were packed out with plasterboard
0:46:20 > 0:46:22which is a total no-no.
0:46:22 > 0:46:24So we've done it correctly.
0:46:25 > 0:46:27Well, that was one problem solved.
0:46:27 > 0:46:31But there were also rotten joists under the floorboards
0:46:31 > 0:46:32which needed replacing
0:46:32 > 0:46:35and all the timbers treated for woodworm.
0:46:35 > 0:46:37And that wasn't the end of the headaches.
0:46:37 > 0:46:41With this chimneybreast, we had to completely take it down,
0:46:41 > 0:46:45acro the remaining build-up and then have new brickwork installed
0:46:45 > 0:46:48from floor level right the way up the wall.
0:46:48 > 0:46:51We then dressed it up by plastering over.
0:46:51 > 0:46:55We also inserted the electric fire at that particular time
0:46:55 > 0:46:59as well as the new electrics wall-mounted TVs.
0:47:00 > 0:47:04The flat was gutted and totally renovated right from the original brickwork
0:47:04 > 0:47:06straight through to the decoration.
0:47:06 > 0:47:09Angie reckons it's now ready for business.
0:47:09 > 0:47:12I think Paul's done an absolutely amazing job with it.
0:47:12 > 0:47:16He spent an awful lot of time and hard work doing it
0:47:16 > 0:47:18and getting it up to scratch.
0:47:18 > 0:47:20Still got a bit left to do, obviously,
0:47:20 > 0:47:22but he's done really well.
0:47:22 > 0:47:26This renovation has been extremely challenging throughout.
0:47:26 > 0:47:29The first few weeks was fine, everything was going according to plan.
0:47:29 > 0:47:35Then after the accident, that's when things became a bit hard.
0:47:36 > 0:47:39We decided to do all these internal walls and the ceilings
0:47:39 > 0:47:41and a lot of the joists needed to be trimmed down.
0:47:41 > 0:47:45The equipment needed to do that I was unfamiliar with.
0:47:45 > 0:47:49I didn't sit down and read the book and set up the equipment correctly.
0:47:49 > 0:47:54And lo and behold, the second piece of wood and a brand new piece of equipment
0:47:54 > 0:47:56and it took my thumb straight off.
0:47:59 > 0:48:04Blimey! While we often focus on the fiscal risks in property,
0:48:04 > 0:48:06we do also need to remind ourselves
0:48:06 > 0:48:09that there are physical risks involved, too.
0:48:09 > 0:48:11Building sites are dangerous places.
0:48:11 > 0:48:14Fortunately, Paul's injury is healing well,
0:48:14 > 0:48:17but with Angie away on a nursing course at the university,
0:48:17 > 0:48:20it meant he had to bring in help to get the place completed.
0:48:20 > 0:48:24Once the plaster is dry, Paul can finish painting and get the electrics checked
0:48:24 > 0:48:26by a professional.
0:48:26 > 0:48:30Then his new tenant, who's waiting in the wings, is all ready to move in.
0:48:31 > 0:48:34In fact, they've got to this stage in just five weeks,
0:48:34 > 0:48:37so that's pretty impressive, given all the difficulties.
0:48:37 > 0:48:40But what about their budget of £12,000
0:48:40 > 0:48:42with the £2,000 contingency?
0:48:44 > 0:48:49It ended up at a total of £14,256, I believe.
0:48:49 > 0:48:53That's the final tally on this build.
0:48:53 > 0:48:57Slightly over. We did use the contingency
0:48:57 > 0:49:00mainly to employ extra labour.
0:49:02 > 0:49:05Paul's spend of £14,256
0:49:05 > 0:49:08takes his total outlay here to just under 39,000.
0:49:11 > 0:49:13We asked along two local property experts
0:49:13 > 0:49:16including the estate agent who saw it previously,
0:49:16 > 0:49:18to take a look at the place now.
0:49:22 > 0:49:24I think it looks wonderfully spacious.
0:49:24 > 0:49:28I think the use of colours, keeping the walls light,
0:49:28 > 0:49:30floors light, I think works wonderfully well.
0:49:30 > 0:49:32The high ceilings give that feeling of space.
0:49:32 > 0:49:35You wouldn't think you were in a ground floor flat.
0:49:35 > 0:49:38It has the feel of a much larger home.
0:49:38 > 0:49:41My overall impression of the property is it's done to a good standard.
0:49:41 > 0:49:44Nice finish. Modern and contemporary throughout.
0:49:44 > 0:49:49But will the refurbishment benefit Paul and Angie's bank account?
0:49:49 > 0:49:52They already have a tenant lined up for the flat.
0:49:52 > 0:49:55But after spending just under £39,000 here,
0:49:55 > 0:49:58have they managed to get the best rental return?
0:49:59 > 0:50:05This property I would expect to achieve £495 per calendar month for rent.
0:50:05 > 0:50:09On the rental market it should achieve at least £450 per calendar month on an unfurnished basis,
0:50:09 > 0:50:13up to £495 per calendar month on a furnished basis.
0:50:13 > 0:50:15I'm well pleased with the rental valuations.
0:50:15 > 0:50:18We have actually achieved in excess of that.
0:50:18 > 0:50:21We've rented this out at £500 per calendar month.
0:50:21 > 0:50:26That rental return earns Paul and Angie a whopping annual yield
0:50:26 > 0:50:27of 15.5 per cent.
0:50:27 > 0:50:30The estate agents reckon a resale
0:50:30 > 0:50:33could achieve between 60 and 65,000,
0:50:33 > 0:50:38which would mean a possible profit for them of between 21 and £26,000
0:50:38 > 0:50:40minus the usual tax and expenses.
0:50:47 > 0:50:52So the couple now have another successful property on their portfolio,
0:50:52 > 0:50:54ready to earn its keep.
0:50:54 > 0:50:59But also important to them are their own efforts to revitalise the local area.
0:51:00 > 0:51:02We are getting there. It's going to be a slow process.
0:51:02 > 0:51:08There are a lot of houses out there that do need to be updated, renovated, and presentable.
0:51:08 > 0:51:11And to be somewhere nice to live.
0:51:11 > 0:51:13We're only one person in the market.
0:51:13 > 0:51:16It takes time, but we're getting there.
0:51:20 > 0:51:25Back now to this two-bed semi in the Oakwood area of Derby,
0:51:25 > 0:51:28which was snapped up at auction for £107,500
0:51:28 > 0:51:31by husband and wife team Martin and Julia.
0:51:31 > 0:51:35They've been doing up and renting out property for the last seven years
0:51:35 > 0:51:38after ringing the bell on their teaching careers.
0:51:41 > 0:51:45People have this perception of teachers that you leave at half past three
0:51:45 > 0:51:48and it's all holidays, and it's not like that.
0:51:48 > 0:51:50- Course not.- Not like that at all.
0:51:50 > 0:51:52I'd been doing it for 20 years.
0:51:52 > 0:51:56I thought, "I can't sustain this any more", and I wanted to get out.
0:51:56 > 0:51:58So it was part of the escape plan.
0:52:02 > 0:52:05The couple set themselves a two to three month timescale
0:52:05 > 0:52:09and a budget of 7,500 to get the property ready for the rental market.
0:52:09 > 0:52:14And bang on schedule, we're back to see what we can learn from these former teachers.
0:52:45 > 0:52:48Gold stars all round, I reckon. It hasn't taken them long,
0:52:48 > 0:52:54but Martin and Julia have achieved a tremendous amount since we were last here.
0:52:55 > 0:52:57We had to gut the place first
0:52:57 > 0:53:02and once we'd done that, we could see what we'd let ourselves in for
0:53:02 > 0:53:04and what we'd got to do.
0:53:04 > 0:53:08We ripped out the old bathroom, the kitchen went.
0:53:08 > 0:53:11The boiler went. New windows.
0:53:11 > 0:53:15Garden, carpets, that's it, I think, isn't it?
0:53:15 > 0:53:16Think so.
0:53:16 > 0:53:20Oh, the chimneybreast. We took the chimneybreast out.
0:53:20 > 0:53:22Ah, yes, the old chimneybreast.
0:53:22 > 0:53:24Talk us through that one, Julia.
0:53:27 > 0:53:30Originally, there was a brick fireplace, floor to ceiling.
0:53:30 > 0:53:33So we decided to take it down, which was quite difficult
0:53:33 > 0:53:35cos the bricks were welded to the wall.
0:53:35 > 0:53:38Then part of the ceiling was missing when we'd got it down.
0:53:38 > 0:53:42So we had to replaster the ceiling, put new coving on.
0:53:42 > 0:53:46I had the wall replastered and then we decided to wallpaper it
0:53:46 > 0:53:47because the room was very bland.
0:53:47 > 0:53:50And we bought this more contemporary fireplace.
0:53:50 > 0:53:52We're pleased with it in the end.
0:53:55 > 0:53:57And fired up by that, Martin gets an A-plus
0:53:57 > 0:54:00for ringing the changes in the kitchen
0:54:00 > 0:54:02without going crazy on the cash.
0:54:05 > 0:54:08Really pleased with the kitchen.
0:54:08 > 0:54:11It didn't come in too badly.
0:54:11 > 0:54:15It cost us £700 altogether for the whole kitchen.
0:54:15 > 0:54:18The only thing extra was the cooker.
0:54:18 > 0:54:22But it's come out really nicely.
0:54:22 > 0:54:25We picked the units to make them a lot more contemporary
0:54:25 > 0:54:27to try and match the style of the house now.
0:54:27 > 0:54:31Especially now the windows haven't got the leads on.
0:54:31 > 0:54:35I put the kitchen together myself. It was quite a lot of hard work.
0:54:35 > 0:54:38But it's turned out nicely, I think.
0:54:41 > 0:54:43I have to agree with you there, Martin.
0:54:43 > 0:54:46There are only a couple of finishing touches to do.
0:54:46 > 0:54:49The couple are well within their two to three month timescale.
0:54:49 > 0:54:51But what about their budget?
0:54:52 > 0:54:55I originally said we'd spend about 7,500 to 8,000.
0:54:55 > 0:54:57I think we came in with about 8,000, didn't we?
0:54:57 > 0:55:00So the main expenses have been the windows,
0:55:00 > 0:55:02the kitchen.
0:55:02 > 0:55:04Put a combi boiler in. That was it, really.
0:55:04 > 0:55:06Oh, a new bathroom suite.
0:55:06 > 0:55:10- And we've done most of the work ourselves, haven't we?- Yeah.
0:55:11 > 0:55:15An £8,000 spend brings their total outlay here
0:55:15 > 0:55:17to £115,500.
0:55:19 > 0:55:23We asked two local property experts, including the auctioneer who sold it,
0:55:23 > 0:55:25for their thoughts on this renovation.
0:55:28 > 0:55:31This property is a perfect example or a property ready to move into
0:55:31 > 0:55:33for let or for sale.
0:55:33 > 0:55:35It's clean, it's tidy. It looks good.
0:55:35 > 0:55:37It's appealing, it's fresh.
0:55:37 > 0:55:40I'm glad to see what they've done to the back garden.
0:55:40 > 0:55:43It really was a wilderness the first time I saw it.
0:55:43 > 0:55:45They've tamed it extremely well.
0:55:47 > 0:55:51The experts think the property would sell for between 115 and 120,000,
0:55:51 > 0:55:54which, when you factor in tax and expenses,
0:55:54 > 0:55:57could actually mean a loss for Martin and Julia
0:55:57 > 0:55:59if they sold now.
0:55:59 > 0:56:01But they are in this for the long term
0:56:01 > 0:56:04and are purely interested in rental valuations.
0:56:06 > 0:56:12Rental value is 475 to £500 per calendar month.
0:56:12 > 0:56:16It should achieve around £495 per calendar month.
0:56:16 > 0:56:20It's about what we thought. We thought around 495.
0:56:20 > 0:56:23We've got other houses in different areas that rent out at that rate.
0:56:23 > 0:56:25Yeah.
0:56:26 > 0:56:29An income of £495 per month
0:56:29 > 0:56:32would result in a yield of around five per cent,
0:56:32 > 0:56:33which is respectable.
0:56:33 > 0:56:37So, are Martin and Julia happy with what they've achieved here?
0:56:38 > 0:56:40Yeah, I think so.
0:56:40 > 0:56:42It's been a lot of hard work.
0:56:42 > 0:56:47We could do with a rest. But we'll just let it now, won't we, and move on to the next.
0:56:49 > 0:56:51We hope you've enjoyed watching Homes under the Hammer
0:56:51 > 0:56:54and learnt some useful lessons along the way!
0:56:54 > 0:56:59Join us next time for more hot properties, and maybe some a little more lukewarm!
0:56:59 > 0:57:01- See you next time.- Goodbye.- Goodbye!
0:57:22 > 0:57:25Subtitles by Red Bee Media Ltd