0:00:02 > 0:00:05Now, home is where the heart is, they say, but is your heart
0:00:05 > 0:00:06in making money on property?
0:00:06 > 0:00:09Well, let's find out who put their heart and soul
0:00:09 > 0:00:11into buying their home under the hammer.
0:00:36 > 0:00:40Now, buying property at auction can be a road to success,
0:00:40 > 0:00:44but there are risks involved, so it's important to tread carefully.
0:00:44 > 0:00:48Even experienced developers can make wrong moves, so let's see
0:00:48 > 0:00:52what got people interested at the auctions on today's show.
0:00:53 > 0:00:57In Manchester, this forlorn two-bed terrace was unloved,
0:00:57 > 0:00:59except by a pigeon or two.
0:00:59 > 0:01:02Will a buyer save it or take flight?
0:01:03 > 0:01:05In Maidstone, Kent,
0:01:05 > 0:01:08there's a one-bed flat in this block with a short lease
0:01:08 > 0:01:12and it turns out time is of the essence for quite another reason!
0:01:13 > 0:01:17And in Chesterton, Staffordshire, will this two-bed property offer a
0:01:17 > 0:01:21juicy future investment for the next generation of property developers?
0:01:25 > 0:01:27'All these properties went to auction.
0:01:27 > 0:01:28'We'll find out who bought them
0:01:28 > 0:01:31'and what they paid when they went under the hammer.'
0:01:31 > 0:01:33It's yours now, sir.
0:01:37 > 0:01:40This is Manchester city centre.
0:01:40 > 0:01:42A great place for shopping and nightlife.
0:01:42 > 0:01:46No surprise, it attracts visitors from many miles away,
0:01:46 > 0:01:49as well as the local suburbs.
0:01:49 > 0:01:52While Moston was once an upmarket haven for
0:01:52 > 0:01:58Manchester's wealthy merchants and pretty much retained a village feel
0:01:58 > 0:02:02while the city expanded around it, eventually, it did lose some
0:02:02 > 0:02:08of its green spaces, but elegant Victorian streets still remain.
0:02:08 > 0:02:11The property I'm here to see is about three miles away
0:02:11 > 0:02:13from the motorway in an area with a mixture of
0:02:13 > 0:02:17local housing stock and it's got a pleasant feel.
0:02:17 > 0:02:19Well, this really is a lovely street.
0:02:19 > 0:02:22It's tree-lined, people look like they're
0:02:22 > 0:02:26looking after their houses...so, why is that significant?
0:02:26 > 0:02:29Well, it's an old adage in the property industry that
0:02:29 > 0:02:31the best thing you can possibly do
0:02:31 > 0:02:35is buy the worst house on the best street.
0:02:35 > 0:02:37HE SHARPLY INTAKES BREATH
0:02:37 > 0:02:38Well, I think we've found it!
0:02:38 > 0:02:42£30,000 to £40,000 was the guide price.
0:02:42 > 0:02:45It's a two-bedroom mid-terrace. Let's take a look inside.
0:02:45 > 0:02:49'The boarded windows don't make the most auspicious start.'
0:02:49 > 0:02:52- OK! - HE LAUGHS NERVOUSLY
0:02:52 > 0:02:54What are we going to find?!
0:02:54 > 0:02:58Well, it's...just judging by the height of the ceilings,
0:02:58 > 0:03:01going to be a relatively impressive property.
0:03:01 > 0:03:04I know it's not what first impressions might say.
0:03:04 > 0:03:07Um...and you really have to use your imagination here a bit,
0:03:07 > 0:03:11but just bear with me. A big front sitting room there.
0:03:11 > 0:03:14I mean, it's quite dark at the moment cos of all
0:03:14 > 0:03:17the boarded up windows, but it's not a bad sized space.
0:03:17 > 0:03:20A bit of an under-stair storage area and then through
0:03:20 > 0:03:27into your rear...sort of living area / whatever you want to call it.
0:03:27 > 0:03:29As you can see, somebody's obviously started, uh,
0:03:29 > 0:03:32some of the renovation works. That's good.
0:03:32 > 0:03:35Yeah, I know at first glance you think, "Ooh, oh!"
0:03:35 > 0:03:38But you probably would have had to do that anyway, so they've actually
0:03:38 > 0:03:41done quite a lot of the work for you and got rid of all that rubbish.
0:03:41 > 0:03:44Skips and skips and skips' worth of it, I'm sure.
0:03:44 > 0:03:45But it's a reasonable sized space.
0:03:45 > 0:03:49Big, big chimney breast there which certainly
0:03:49 > 0:03:53imposes into the room rather a lot. So, that's OK.
0:03:53 > 0:03:56Um, right to the rear of the property then,
0:03:56 > 0:03:57a small, little additional...
0:03:57 > 0:04:00my guess is, some kind of extension
0:04:00 > 0:04:02and it looks to me like this was where the kitchen was.
0:04:02 > 0:04:04I say was, because the kitchen has gone,
0:04:04 > 0:04:08obviously ended up in the skip as well. That's good and bad.
0:04:08 > 0:04:09Good, cos somebody got rid of it, bad
0:04:09 > 0:04:12because when it comes to getting a mortgage on this place,
0:04:12 > 0:04:15the mortgage company, more often than not, is going to
0:04:15 > 0:04:17want to have a kitchen and a workable bathroom.
0:04:17 > 0:04:19So, huh, that could be an issue.
0:04:19 > 0:04:22That said, this house is at such a level in terms of price,
0:04:22 > 0:04:25you might struggle to find a lender who's going to lend that
0:04:25 > 0:04:26little amount anyway, but,
0:04:26 > 0:04:30as strange as it may seem, a good start.
0:04:33 > 0:04:36We have explored these sort of issues before.
0:04:36 > 0:04:39No kitchen can mean no loan.
0:04:39 > 0:04:42My advice would be to try and get a part deferred one where
0:04:42 > 0:04:46a portion of the mortgage is held back until you fit one.
0:04:46 > 0:04:49Another issue is that sometimes properties are...
0:04:49 > 0:04:52Can you believe it? ..too cheap to get a loan.
0:04:52 > 0:04:55It can be difficult to get a small amount.
0:04:55 > 0:04:58You usually can't borrow less than £25,000,
0:04:58 > 0:05:02so a cash buyer might fancy this one.
0:05:02 > 0:05:06Incomplete renovations always lead me to check the property for any
0:05:06 > 0:05:09signs the previous owner might have hit a major issue that they
0:05:09 > 0:05:11couldn't afford to deal with.
0:05:12 > 0:05:15Of course, sometimes people are just too ambitious
0:05:15 > 0:05:19and run out of time and energy or money.
0:05:19 > 0:05:22While inside has been stripped bare,
0:05:22 > 0:05:25I wish I could say the same about the garden.
0:05:25 > 0:05:28There is access from the back which is a bonus
0:05:28 > 0:05:32and that seems to be quite nicely kept, but the brickwork
0:05:32 > 0:05:36on the extension looks like it needs some desperate attention.
0:05:37 > 0:05:40Well, upstairs, I know it's quite simple,
0:05:40 > 0:05:42but the layout to me really works very well.
0:05:42 > 0:05:45You've got a big double bedroom at the front there,
0:05:45 > 0:05:49this little landing area here, a smaller bedroom there
0:05:49 > 0:05:53and then your bathroom where it should be upstairs here.
0:05:53 > 0:05:55Now, I say bathroom, it's a
0:05:55 > 0:05:57space which a bathroom will be in at some point,
0:05:57 > 0:06:00but, again, like the kitchen, it doesn't exist, so, again,
0:06:00 > 0:06:02when it comes to mortgages,
0:06:02 > 0:06:05the fact there isn't a bathroom or a loo, not ideal.
0:06:05 > 0:06:08Now, the other thing I do know is up here, is rather a lot of bird poo.
0:06:08 > 0:06:12That brings up two issues. Uh, the first one being health.
0:06:12 > 0:06:15When you are looking round houses, um...prior to an auction,
0:06:15 > 0:06:17perhaps just be careful.
0:06:17 > 0:06:20Bird poo is generally not regarded as such a healthy thing to
0:06:20 > 0:06:23swan around in, but the other thing is why is the bird poo there?
0:06:23 > 0:06:26There must be birds in the loft, logically,
0:06:26 > 0:06:27how did they get in there?
0:06:27 > 0:06:31Probably through a hole in the roof and that is also serious.
0:06:31 > 0:06:35From the front of the property, those pigeons are easy to spot.
0:06:35 > 0:06:40# Come on, little pigeon, fly away with me... #
0:06:40 > 0:06:43That roof has had it. No two ways about it.
0:06:43 > 0:06:46But the brickwork and pointing look OK.
0:06:46 > 0:06:49The boarded up front window is more of a concern.
0:06:49 > 0:06:53Well, here in the front room, broken window, boarded up, I mean,
0:06:53 > 0:06:56it just fits in with that whole image of a house on the outside.
0:06:56 > 0:07:00You know, a fairly rundown, unloved kind of place.
0:07:00 > 0:07:04One of the ancillary benefits of being a property developer, and
0:07:04 > 0:07:08it's hard to put your finger on, but it does drive quite a few people,
0:07:08 > 0:07:10and that is that feeling that you are going to take
0:07:10 > 0:07:13something which is in this kind of state
0:07:13 > 0:07:16and bring it back to life, not only improving this
0:07:16 > 0:07:19and potentially providing a lovely home for someone to live in,
0:07:19 > 0:07:22but also improving the area.
0:07:22 > 0:07:25Don't knock it. It's an important part of the whole thing.
0:07:25 > 0:07:27MUSIC: "Getting Better" by The Beatles
0:07:27 > 0:07:30# It's getting so much better all the time
0:07:30 > 0:07:33# It's getting better all the time
0:07:33 > 0:07:35# Getting better... #
0:07:35 > 0:07:39With the guide price of £30,000 to £40,000, it seems fairly cheap on
0:07:39 > 0:07:43the face of it, but this property has a few issues that I would
0:07:43 > 0:07:45really want to do some preparations for,
0:07:45 > 0:07:49like checking out a loan and getting someone to look at that roof.
0:07:49 > 0:07:52What does a local estate agent make of it?
0:07:52 > 0:07:56I think it needs the full works. Obviously, it's been stripped. Um...
0:07:56 > 0:07:59the positive side of that is that it's clean and ready to go, but,
0:07:59 > 0:08:02fundamentally, the property needs a complete and extensive
0:08:02 > 0:08:04refurbishment to get it into a condition that's going to
0:08:04 > 0:08:08attract a buyer or attract a potential tenant.
0:08:08 > 0:08:11After a full refurbishment with a bathroom and kitchen installed,
0:08:11 > 0:08:15how much could this property, that was guided at £30,000 to £40,000,
0:08:15 > 0:08:17achieve on the open market?
0:08:17 > 0:08:19Brought back to a reasonable condition,
0:08:19 > 0:08:23this property would probably sell at around about the £55,000 mark.
0:08:23 > 0:08:26And the income a buy-to-let investor could obtain?
0:08:26 > 0:08:28From a rental point of view,
0:08:28 > 0:08:32I'd expect a property of this nature, when it's finished, to rent
0:08:32 > 0:08:37for a figure of approximately £450 per calendar month, possibly £475.
0:08:37 > 0:08:40Well, first impressions are, this house is a bit of a mess,
0:08:40 > 0:08:42but all that work is stuff you would have had to do anyway,
0:08:42 > 0:08:46so, it's a bonus that somebody's started it for you.
0:08:46 > 0:08:50A decent house in a good area, let's see who bought it
0:08:50 > 0:08:52when it went under the hammer.
0:08:52 > 0:08:55And this bidding happened towards the end of the day.
0:08:56 > 0:08:59Moston in Manchester, a vacant two-bedroom
0:08:59 > 0:09:00mid-terraced house,
0:09:00 > 0:09:03four miles north-east of Manchester city centre.
0:09:03 > 0:09:0515,000.
0:09:05 > 0:09:07£15,000.
0:09:07 > 0:09:0915 right up the back.
0:09:09 > 0:09:1220 I'm looking for. 20 here. Shall we say 25?
0:09:12 > 0:09:1425?
0:09:14 > 0:09:16Yes, 25 I've got. 30 I need. 35.
0:09:18 > 0:09:22No, it's with you, sir, at £30,000. I'll take 31 then.
0:09:22 > 0:09:26Somebody right behind you then, sir, so that's 31 right behind you.
0:09:26 > 0:09:2732 in front.
0:09:29 > 0:09:3133 sitting down. 34, sir?
0:09:31 > 0:09:3734, standing up. 35? 36. 37.
0:09:37 > 0:09:40No? At 36, standing up.
0:09:40 > 0:09:41A new bidder right at the back.
0:09:41 > 0:09:43Thank you. At 37, sir.
0:09:44 > 0:09:46I've got 37. I need 38.
0:09:46 > 0:09:4839.
0:09:48 > 0:09:5040, sir?
0:09:50 > 0:09:5241.
0:09:52 > 0:09:5342.
0:09:54 > 0:09:5643.
0:09:56 > 0:10:00No? With you, sir, at £42,000. I'm looking for 43.
0:10:00 > 0:10:02I'll take a half at 42 and a half.
0:10:02 > 0:10:0443 I need.
0:10:04 > 0:10:06Will you give me 43?
0:10:06 > 0:10:09He is. 43 and a half, sir?
0:10:09 > 0:10:12No? You definitely out, sir? I've got 43.
0:10:12 > 0:10:15First time, second time, we're all finished?
0:10:15 > 0:10:16It's yours now, sir. Well done.
0:10:16 > 0:10:19# Going, going, gone! #
0:10:19 > 0:10:23The successful bidder, who didn't hang around, was David.
0:10:23 > 0:10:29He paid £43,000 for the messy mid-terrace in Moston, Manchester.
0:10:29 > 0:10:34He's a full-time landlord who has several properties in his portfolio.
0:10:34 > 0:10:38I met him back at the house to find out his plans.
0:10:38 > 0:10:40- David, good to meet you. - Good to meet you, Martin.
0:10:40 > 0:10:42- Congratulations!- Thank you.
0:10:42 > 0:10:45What was it particularly that appealed about this place?
0:10:45 > 0:10:46The fact that...
0:10:47 > 0:10:49..it's a good street...
0:10:49 > 0:10:50is very attractive.
0:10:50 > 0:10:55I would have probably paid more than 43,000 for this house
0:10:55 > 0:11:00on a less good street, so, to get it on a really nice street like this...
0:11:00 > 0:11:03- is a good result.- Somebody's obviously done a bit of work.
0:11:03 > 0:11:05What are you going to do with it?
0:11:05 > 0:11:07Pretty much everything.
0:11:07 > 0:11:11You know, it's going to need the roof fixing and the pigeons removing.
0:11:11 > 0:11:15It's probably going to need damp taken away from the bottom.
0:11:15 > 0:11:18New kitchen, new bathroom, new electrics, new plumbing,
0:11:18 > 0:11:21- new everything, really.- Do you get personally involved in that?
0:11:21 > 0:11:25It's my little building firm that will do the work.
0:11:25 > 0:11:30# Do you know the master builder? #
0:11:30 > 0:11:34Well, the property's going to need considerable building work
0:11:34 > 0:11:37to fix the roof and replace the ceilings and the plaster,
0:11:37 > 0:11:38but what about the layout?
0:11:38 > 0:11:41Is David planning any changes?
0:11:41 > 0:11:42Upstairs, I think, is fine.
0:11:44 > 0:11:46Downstairs, there is an issue with the kitchen,
0:11:46 > 0:11:48where I'm going to put the kitchen.
0:11:48 > 0:11:52The question is, whether it goes in here or in that outhouse.
0:11:52 > 0:11:57There are a dozen arguments with tenants about damp and cold, and
0:11:57 > 0:12:02I think it would be better to retreat into this main body of the house.
0:12:02 > 0:12:05- Mm-hm.- Take out these chimney breasts...- Right.- ..front and back.
0:12:05 > 0:12:09It would give us a nice regular shape for a proper kitchen.
0:12:09 > 0:12:13Removing any chimney breast requires structural advice.
0:12:13 > 0:12:18Reinforced steel joists could be needed to support the house.
0:12:18 > 0:12:22David's builders will remove the chimney breasts upstairs as well.
0:12:22 > 0:12:25But even with the extra space that will create,
0:12:25 > 0:12:28he doesn't plan to convert it into a three bed property.
0:12:28 > 0:12:31He'd rather keep two decent-sized bedrooms.
0:12:31 > 0:12:36David reckons he has a unique approach to his rental portfolio.
0:12:36 > 0:12:39He really focuses on how energy efficient
0:12:39 > 0:12:42and comfortable his properties are.
0:12:42 > 0:12:44People think terraced houses are very cosy.
0:12:44 > 0:12:48The problem is the front and back walls.
0:12:48 > 0:12:51There are no cavities in them so you can't cavity fill the walls
0:12:51 > 0:12:54and bring them up to modern insulation standards.
0:12:54 > 0:12:56So what we will do here is we'll put insulated
0:12:56 > 0:12:59plasterboard on the inside of the walls.
0:12:59 > 0:13:02It will shrink the room a bit, by about 10 centimetres,
0:13:02 > 0:13:06but it will just make the room so much warmer.
0:13:06 > 0:13:08And warm tenants are happy tenants.
0:13:08 > 0:13:11I like David's approach.
0:13:11 > 0:13:14It is refreshing to see he intends to make the property better
0:13:14 > 0:13:15and make his tenants happy.
0:13:17 > 0:13:20# Oh happy day (Oh happy day)
0:13:20 > 0:13:23# Oh happy day (Oh happy day). #
0:13:23 > 0:13:27Sometimes landlords only think of bottom line and it's not
0:13:27 > 0:13:30good for tenants or the quality of the property in the long-term.
0:13:30 > 0:13:34# Oh happy day. #
0:13:34 > 0:13:39- So what is the budget for the work? - £15,000, I think, should see it right.
0:13:39 > 0:13:42- Listen, congratulations. Good luck with it.- Thanks very much.
0:13:42 > 0:13:44Looking forward to seeing how you get on.
0:13:44 > 0:13:48I think David has got himself a good buy with this property.
0:13:48 > 0:13:51A solid house in a nice area.
0:13:51 > 0:13:54The only question is, where will the kitchen be when we come back?
0:13:54 > 0:13:56You can find out later in the show.
0:14:05 > 0:14:09This is Maidstone in Kent on the banks of the River Medway,
0:14:09 > 0:14:11once the route for much of the town's trade.
0:14:11 > 0:14:16Nowadays, Maidstone locals are much more likely to use the M20 motorway
0:14:16 > 0:14:21and the train line that gets you into central London in under an hour.
0:14:21 > 0:14:25Top that with the lovely town centre and the house prices sitting
0:14:25 > 0:14:29around the national average, it is certainly somewhere to take a look.
0:14:31 > 0:14:34On a weekday afternoon, Maidstone is buzzing.
0:14:34 > 0:14:38Plenty of shops and cafes and a really nice busy vibe,
0:14:38 > 0:14:41which gives the impression the town is blooming.
0:14:41 > 0:14:43Let's hope the housing market is as bright.
0:14:45 > 0:14:50The property I'm here to see is a very comfortable seven minute walk from the train station.
0:14:50 > 0:14:55It's a little longer to the high street but only by about a minute.
0:14:55 > 0:14:58You couldn't get much more central, which should make up for the fact
0:14:58 > 0:15:02there's not a whole heap of curb appeal about this place.
0:15:02 > 0:15:05Still, for a one-bedroom flat so well located,
0:15:05 > 0:15:10£45,000 to £55,000, doesn't sound too bad.
0:15:10 > 0:15:12I'm going to check it out.
0:15:12 > 0:15:15The well tended communal gardens are a bonus.
0:15:18 > 0:15:21And the stairwell in the communal area is neat and tidy.
0:15:21 > 0:15:23So good first impressions.
0:15:27 > 0:15:30Nicely maintained public areas, which is always good to see.
0:15:30 > 0:15:33One of the first things I notice, storage heaters.
0:15:33 > 0:15:36We will come back to that a little later on.
0:15:36 > 0:15:38You've got a bathroom there and a nice white suite.
0:15:38 > 0:15:42You could possibly re-use that. A bedroom. A bit on the small size.
0:15:42 > 0:15:46It's funny because these sort of properties and buildings that were built in the '80s
0:15:46 > 0:15:50were always a lot smaller than the ones that were built in the '60s and '70s.
0:15:50 > 0:15:54You can see there is a table and chairs there, so it demonstrates that people can eat in here.
0:15:54 > 0:15:58You could put some sofas there and there.
0:15:58 > 0:16:00And kitchen, again, really small.
0:16:00 > 0:16:05But I'm hoping you would be able to get rid of that water tank.
0:16:05 > 0:16:08So overall, it is a little bit on the small side,
0:16:08 > 0:16:11but it could be a nice cosy place to live.
0:16:12 > 0:16:14Now, one word of caution.
0:16:14 > 0:16:17In a leasehold property like this, you can't just come in
0:16:17 > 0:16:20and start knocking walls down to try and make the layout bigger
0:16:20 > 0:16:23without first obtaining the freeholder's permission
0:16:23 > 0:16:26and there's no guarantee you'll get it.
0:16:27 > 0:16:29I would want to make the kitchen bigger
0:16:29 > 0:16:33and some of the windows, well, they certainly need attention.
0:16:33 > 0:16:37But on the whole, I reckon do the basics and hey presto,
0:16:37 > 0:16:40you've got a nice home or a good little renter.
0:16:40 > 0:16:45Now, back to something we saw earlier.
0:16:45 > 0:16:50So, storage heaters versus gas central heating. Verdict?
0:16:50 > 0:16:52Let me sit down.
0:16:52 > 0:16:57Storage heaters are notoriously unpopular and might put people off.
0:16:57 > 0:17:00They can be expensive to run and difficult to control.
0:17:00 > 0:17:04They are also pricey to replace if they break.
0:17:04 > 0:17:07Between £200 and £500 each.
0:17:07 > 0:17:11But gas, while being cheaper in the long run, is expensive to install.
0:17:11 > 0:17:13At least a few thousand pounds.
0:17:13 > 0:17:16And I don't even know if it's going to be in this block at all.
0:17:16 > 0:17:20Personally, if I was going to rent this flat out or live here,
0:17:20 > 0:17:22I would definitely look into the cost of switching
0:17:22 > 0:17:27and if that's not an option, take advice on modern thermostats
0:17:27 > 0:17:30and get these heaters working nice and effectively
0:17:30 > 0:17:32for whoever ends up living here.
0:17:32 > 0:17:35# If you don't believe I can warm you right
0:17:35 > 0:17:37# Take me to your house and let me stay all night
0:17:37 > 0:17:39# You've got to warm up
0:17:39 > 0:17:41# You've got to warm up. #
0:17:41 > 0:17:44It's not a large space to heat and being sandwiched
0:17:44 > 0:17:48between other flats will help massively with insulation.
0:17:48 > 0:17:51But there's another issue I think it would be unwise to ignore.
0:17:53 > 0:17:55This flat has a short lease.
0:17:55 > 0:17:57Not a worryingly shortly lease,
0:17:57 > 0:18:00but at 74 years it's something that needs to be addressed.
0:18:00 > 0:18:03Mortgage companies should not have an issue lending
0:18:03 > 0:18:06with the current length but the lower the lease gets,
0:18:06 > 0:18:08the more expensive it is to extend,
0:18:08 > 0:18:11and it will put subsequent buyers off.
0:18:11 > 0:18:13So my advice would be to just bite the bullet,
0:18:13 > 0:18:16fork out the cash and get it sorted.
0:18:16 > 0:18:21It's an expensive bit of paperwork but worth every single penny.
0:18:21 > 0:18:24When it comes to property, it's all too easy to get carried away
0:18:24 > 0:18:28with the buying and all the fun things like kitchens and bathrooms.
0:18:28 > 0:18:31But you really can't ignore the less glamorous stuff
0:18:31 > 0:18:34like the legal side and the safety requirements.
0:18:34 > 0:18:39So when it comes to that lease, don't be a lazybones. Get it done.
0:18:39 > 0:18:42# Lazybones
0:18:42 > 0:18:45# Sleeping in the sun. #
0:18:45 > 0:18:49It's not a big project and it's only a few minutes from the town centre.
0:18:49 > 0:18:51I think this could be a good one
0:18:51 > 0:18:56if it goes for anything around the guide price of £45,000 to £55,000.
0:18:56 > 0:18:58Does a local estate agent agree?
0:18:59 > 0:19:02I think it's in good order. It's compact accommodation.
0:19:02 > 0:19:05It's not big, but then it's not pretending to be big
0:19:05 > 0:19:08and it's ideal for your first home.
0:19:08 > 0:19:11Any improvements the new owner wants to make
0:19:11 > 0:19:14to that spatially challenged kitchen and replacing the windows
0:19:14 > 0:19:18and changing the storage heaters will all cost a fair bit.
0:19:18 > 0:19:21I can't see where else you could add value.
0:19:21 > 0:19:25What could it fetch on the open market with a decent refurbishment?
0:19:26 > 0:19:29I would suggest it's probably going to achieve
0:19:29 > 0:19:31somewhere in the region of £90,000 to £95,000.
0:19:32 > 0:19:35And the potential rental income it could generate?
0:19:35 > 0:19:38Once renovated, I would imagine this property letting
0:19:38 > 0:19:41for something in the region of £550 per calendar month.
0:19:43 > 0:19:48This is a nice easy flat in an extremely convenient location,
0:19:48 > 0:19:50which would rent very well.
0:19:50 > 0:19:53So let's see who went for it at the auction.
0:19:53 > 0:19:5595, we go to now.
0:19:56 > 0:20:00Purpose-built modern town centre flat for investment or occupation.
0:20:00 > 0:20:03So what are we going to say on that one?
0:20:03 > 0:20:07Can I say £50,000 to start me off on this one? I'll take 45.
0:20:07 > 0:20:12£45,000 bid, I've got. At 50, do I see? 50, I'm bid. 55.
0:20:12 > 0:20:18It's against you. 55 at the back, I have. 57 now if you like. At 55,000.
0:20:18 > 0:20:2257, I've got. 60. And two. 62.
0:20:22 > 0:20:27From either of you. 62. 64. And six. 66, can I see?
0:20:27 > 0:20:2965. 66.
0:20:29 > 0:20:33And seven. 67. And eight.
0:20:33 > 0:20:3668. And nine. 69.
0:20:36 > 0:20:40Oh, you are looking for moral encouragement? 69, bid. At 70.
0:20:40 > 0:20:46And one. 71 now, if you like. At 70,000 to the couple over there. 71.
0:20:46 > 0:20:5372 sitting down. 73. At 72 then, I'm selling for the first time.
0:20:53 > 0:20:5972,000 for the second time. Third... 73. And four. And five.
0:20:59 > 0:21:04He wants it, you know. He really wants it. 75? At £74,000. 75?
0:21:04 > 0:21:07Are we all done at 74 then? For the first time.
0:21:07 > 0:21:0974 for the second time.
0:21:09 > 0:21:13Third and final time at £74,000. Are we all done? Well done.
0:21:13 > 0:21:15You've bought it. F552.
0:21:17 > 0:21:21The successful bidders, paying 74,000, were Stuart
0:21:21 > 0:21:25and his wife, Lindsey, who is expecting their second baby.
0:21:25 > 0:21:27# I've found a new baby
0:21:27 > 0:21:29# I've found a new boy
0:21:29 > 0:21:32# That sweet talking baby
0:21:32 > 0:21:34# Is my pride and joy. #
0:21:34 > 0:21:36The couple are both police officers
0:21:36 > 0:21:39and already have a one-year-old daughter.
0:21:39 > 0:21:42I met them back at the flat to find out their plans.
0:21:42 > 0:21:46- Lindsey and Stuart, congratulations. And congratulations.- Thank you.
0:21:46 > 0:21:49- When is your baby due? - A week and a half.
0:21:49 > 0:21:53Wow! So we better get on and do this interview! How are you feeling?
0:21:53 > 0:21:56- OK.- You are just about to have a baby and you've bought a flat.
0:21:56 > 0:21:58So whose idea was that then?
0:21:58 > 0:22:04Mine, kind of. I like a lot of work. We have done a couple of others.
0:22:04 > 0:22:06We just thought, the banks are a bit rubbish,
0:22:06 > 0:22:09so we'd see what we could find.
0:22:09 > 0:22:11We looked at auctions for well over a year
0:22:11 > 0:22:14and this time around we thought we could rent it as well if we can't sell it.
0:22:14 > 0:22:17So we just went for it.
0:22:17 > 0:22:22Property developing is something Lindsey and Stuart have always wanted to do as a sideline
0:22:22 > 0:22:25but haven't been able to fund a separate property until now.
0:22:25 > 0:22:29They usually live in the property, take their time to do it up and then sell on.
0:22:29 > 0:22:32What is it about this flat that you like so much?
0:22:32 > 0:22:34Why do you think this is a good investment?
0:22:34 > 0:22:36Because it's Maidstone, we know the area really well.
0:22:36 > 0:22:39We rented our first flat just across the road.
0:22:39 > 0:22:42So we are of the opinion, if we would live somewhere, other people will.
0:22:44 > 0:22:47Local knowledge is always good when developing property
0:22:47 > 0:22:49and who knows an area better than a local?
0:22:49 > 0:22:52Well, maybe a local police officer.
0:22:52 > 0:22:56What are the similarities between a policeman and a property developer?
0:22:56 > 0:22:59A bit of a Jack of all trades really.
0:22:59 > 0:23:03As a policeman, people call you for all sorts of weird stuff and you end
0:23:03 > 0:23:07up having to deal with a various range of things, just like here.
0:23:07 > 0:23:11You are a bit of a Jack of all trades and master of none.
0:23:11 > 0:23:15But I get left alone here. No-one comes to hassle me in the property.
0:23:15 > 0:23:17# Leave me alone
0:23:17 > 0:23:19# Stop it
0:23:19 > 0:23:21# Just stop talking doggin' me around. #
0:23:21 > 0:23:24Well, being a police officer obviously is very hard work
0:23:24 > 0:23:28if property developing seems like peace and quiet by comparison.
0:23:29 > 0:23:33So now he's taken down the flat's particulars, what's the verdict?
0:23:34 > 0:23:37Let's talk about the block of flats. It's fabulous.
0:23:37 > 0:23:40It's set in a wonderful little setting. Very green.
0:23:40 > 0:23:43The communal areas are really well maintained.
0:23:43 > 0:23:47- But things like the windows probably need replacing.- Yes. We have looked at getting double glazing.
0:23:47 > 0:23:50We've just obviously got to get permission.
0:23:50 > 0:23:54A couple of the other flats have changed it already, so it shouldn't be too much of a problem.
0:23:54 > 0:23:56What about things internally in the flat?
0:23:56 > 0:24:00Other than to freshen it up and make it modern, obviously you've
0:24:00 > 0:24:03got a water tank in there that takes a lot of space in the kitchen.
0:24:03 > 0:24:06I'm hoping to get that taken for a combi and either make an open plan
0:24:06 > 0:24:10kitchen or at least make the kitchen larger by removing that.
0:24:10 > 0:24:14They're going to need a gas supply and Stuart's checking out
0:24:14 > 0:24:17with the freeholder to see if there is gas already in the block.
0:24:17 > 0:24:21The couple live only 10 minutes away and as Stuart works shifts,
0:24:21 > 0:24:23he plans to refurbish the flat on his days off.
0:24:23 > 0:24:26And during their previous refurbishments,
0:24:26 > 0:24:29they discovered a great way to keep the costs down.
0:24:30 > 0:24:35Because we always go for a set standard, we know exactly what kitchen we use.
0:24:35 > 0:24:38Because we do the same kitchen, it's quite handy
0:24:38 > 0:24:41because I've still got worktops left over and things like that.
0:24:41 > 0:24:44- So it takes down a lot of the cost. - How much have you got to spend here?
0:24:44 > 0:24:47If we can do the boiler, I am going to go for five.
0:24:47 > 0:24:49But without the boiler, I would say about £3,000.
0:24:49 > 0:24:52- The majority would be on the windows.- Wait a minute.
0:24:52 > 0:24:57What about the kitchen and the bathroom? All in the £3,000 budget?
0:24:57 > 0:24:59Already priced up the kitchen and got it all sorted.
0:24:59 > 0:25:04That would be one of the lowest budgets I've ever heard of on this show, can I tell you.
0:25:04 > 0:25:08- Between £3,000 to £5,000?- Yes. I think it will be manageable.
0:25:08 > 0:25:14Others have done it as cheap but rarely including bathroom, kitchen and windows.
0:25:14 > 0:25:16They'll need an Aladdin's cave of left over bits.
0:25:16 > 0:25:21# When I find Aladdin's lamp some day. #
0:25:24 > 0:25:27And the couple are hoping that this first purely investment property
0:25:27 > 0:25:31might end up being the start of a full-time property career.
0:25:31 > 0:25:33So what is the timescale?
0:25:33 > 0:25:36A month, if I'm left to do it with no baby.
0:25:36 > 0:25:38If the baby comes, I would say two to three.
0:25:38 > 0:25:42I'll be off every day so I can devote every day to coming here and get it done.
0:25:42 > 0:25:46So even though you are off with your paternity leave, you are going to be here?
0:25:46 > 0:25:49Yes. I don't like to sit around. She doesn't let me!
0:25:49 > 0:25:52It's been such a pleasure meeting you today.
0:25:52 > 0:25:55- Good luck with the baby. I hope the flat goes to plan.- Thank you.
0:25:55 > 0:26:00So this is a platform for Lindsay and Stuart to forge a new career.
0:26:00 > 0:26:04How fantastic! But that budget, are they serious?
0:26:04 > 0:26:07You can find out how it all goes
0:26:07 > 0:26:10and when the baby arrives later on in the show.
0:26:10 > 0:26:15Coming up in Staffordshire - two bedrooms, a bathroom upstairs,
0:26:15 > 0:26:19a decent downstairs layout. Maybe I can have a day off.
0:26:21 > 0:26:25Back in Kent, did the new arrival scupper Stuart's carefully laid plans?
0:26:25 > 0:26:28Stuart was going to come up here even if I was overdue
0:26:28 > 0:26:31and get it all done and everything would be great.
0:26:33 > 0:26:37But first, we head back to Manchester and has David stuck to his mantra?
0:26:38 > 0:26:40Warm tenants are happy tenants.
0:26:44 > 0:26:48Back now to Moston in Greater Manchester and an auction lot
0:26:48 > 0:26:52that appeared to be the classic redevelopment property.
0:26:52 > 0:26:54The worst house on the best street.
0:26:54 > 0:26:56It caught the eye of David,
0:26:56 > 0:27:01a property developer for many years, who paid £43,000 for it,
0:27:01 > 0:27:04even though it had no kitchen or bathroom.
0:27:04 > 0:27:07He planned to add it to his buy-to-let portfolio.
0:27:08 > 0:27:10Somebody's obviously done a bit of work.
0:27:10 > 0:27:14- What are you going to do with it? - Pretty much everything.
0:27:14 > 0:27:18It's going to need the roof fixing and the pigeons removing!
0:27:18 > 0:27:21It's probably going to need damp taken away from the bottom.
0:27:21 > 0:27:26New kitchen. New bathroom. New electrics. New plumbing. Everything, really.
0:27:28 > 0:27:33There was plenty to do but David had a realistic budget of £15,000
0:27:33 > 0:27:37and not all of it was about cosmetic changes.
0:27:37 > 0:27:40David likes to ensure his properties are energy efficient.
0:27:42 > 0:27:45So what we will do here is put insulated plasterboard
0:27:45 > 0:27:47on the inside of the walls.
0:27:47 > 0:27:51It will shrink the room a bit, by about 10 centimetres.
0:27:51 > 0:27:54But it will just make the room so much warmer.
0:27:57 > 0:28:01It's now 18 weeks later and what was originally
0:28:01 > 0:28:06the worst house on the street is now, well, one of the best.
0:28:06 > 0:28:09# Look how far we've come
0:28:09 > 0:28:11# Look what we've made
0:28:11 > 0:28:15# Started from nothing
0:28:15 > 0:28:16# Building
0:28:16 > 0:28:18# Brick by brick by brick by brick
0:28:18 > 0:28:21# Brick by brick by brick by brick
0:28:21 > 0:28:24# Brick by brick by brick by brick
0:28:24 > 0:28:26# Brick by brick by brick by brick
0:28:26 > 0:28:29# Brick by brick by brick by brick
0:28:29 > 0:28:30# Brick by brick by brick by brick. #
0:28:30 > 0:28:33So here is the big change of layout downstairs.
0:28:33 > 0:28:37The kitchen was behind me in the outhouse.
0:28:37 > 0:28:41Now, it's in this room, which is the new kitchen.
0:28:41 > 0:28:45It needed the taking out of that big chimney breast to make a nice
0:28:45 > 0:28:49regular shaped room for kitchen cabinets. Look at it.
0:28:49 > 0:28:53I think it's fantastic. It will be a nice, warm, dry kitchen.
0:28:53 > 0:28:56Originally, the former kitchen was in the extension at the back
0:28:56 > 0:29:00of the property. But that is now going to be the utility room.
0:29:00 > 0:29:02A great space for white goods and laundry
0:29:02 > 0:29:06and somewhere to leave your shoes if you are going out into the backyard.
0:29:06 > 0:29:10Apart from his builder, David employed a structural engineer to supervise
0:29:10 > 0:29:14the removal of the rear chimney from the kitchen and bedroom above,
0:29:14 > 0:29:18which is now almost the same size as the master bedroom at the front.
0:29:21 > 0:29:26David and his team have completely rewired and replumbed the property.
0:29:36 > 0:29:39The pigeons have been evicted from the roof
0:29:39 > 0:29:43and there's new timbers and about 100 replacement tiles,
0:29:43 > 0:29:48plus insulation in the loft, so the property is now watertight and cosy.
0:29:48 > 0:29:52One of the important things about this house is the insulation.
0:29:52 > 0:29:57Tenants want to be warm. You can see that this wall has been plastered.
0:29:57 > 0:30:02What you can't see is that behind there is insulated plasterboard. It's about this thick.
0:30:02 > 0:30:06It's quite a fiddly thing to fit. This has got to come off.
0:30:06 > 0:30:10The skirting boards have got to come off and then be put back afterwards.
0:30:10 > 0:30:13As soon as we did this, it's made the house much warmer and much drier.
0:30:13 > 0:30:16We've done it in this room, and at the back of the house.
0:30:18 > 0:30:21David has numerous buy-to-let properties in his portfolio.
0:30:21 > 0:30:24And he's passionate about providing warm,
0:30:24 > 0:30:26eco-friendly houses for his tenants.
0:30:26 > 0:30:29And he must be applauded for that.
0:30:30 > 0:30:31Now it's been cleared,
0:30:31 > 0:30:34there's a decent-sized bit of land out the back.
0:30:34 > 0:30:36Add a pot or two and maybe some trellising
0:30:36 > 0:30:40and it will make a great barbecue area. Now onto the money.
0:30:40 > 0:30:42How much has the refurbishment come in at?
0:30:42 > 0:30:47My original budget was £15,000. I have spent more than that.
0:30:47 > 0:30:50It has crept up towards £20,000.
0:30:50 > 0:30:54That's partly because we found some extra structural work.
0:30:54 > 0:30:59And partly, the tenant who came on the scene and negotiated with me
0:30:59 > 0:31:02and we've upped the spec a little bit.
0:31:02 > 0:31:04Well, it's good news that David's got a tenant lined up.
0:31:04 > 0:31:07And with the £43,000 he paid at auction,
0:31:07 > 0:31:11it takes his total investment to £63,000.
0:31:12 > 0:31:14I spent a lot of money on this house
0:31:14 > 0:31:17and there's been a lot of work getting it into a state
0:31:17 > 0:31:21that will be easy to maintain, easy to look after, no hassle.
0:31:21 > 0:31:25I think in 20 years when my children are managing this house,
0:31:25 > 0:31:27this will still be child's play to run this house.
0:31:28 > 0:31:31# Child's play...
0:31:31 > 0:31:34# Child's play...
0:31:34 > 0:31:38# Child's play... #
0:31:42 > 0:31:46What will two local estate agents think of the transformations
0:31:46 > 0:31:48David's made?
0:31:48 > 0:31:50I like the property. Nice and clean.
0:31:50 > 0:31:53Everything's been done to a good standard.
0:31:53 > 0:31:55They've kept it quite simple.
0:31:55 > 0:31:57But what they've done, they've done well.
0:31:57 > 0:31:59Very impressed, actually. It's nice and bright and it's clean.
0:31:59 > 0:32:01It's been refurbished to a good standard.
0:32:01 > 0:32:05- Very impressed.- I like what they've done as far as moving the kitchen.
0:32:05 > 0:32:08That's a good idea. It gives you a nice big open kitchen.
0:32:08 > 0:32:11I think it's achieved the right balance between it'll be something
0:32:11 > 0:32:13that's manageable from the landlord's point of view,
0:32:13 > 0:32:14easily maintainable.
0:32:14 > 0:32:18But I think it'll also attract a tenant because it is clean and bright and fresh.
0:32:18 > 0:32:21How much do the agents think the property is now worth?
0:32:21 > 0:32:24More than the £63,000 that David's invested?
0:32:24 > 0:32:26From a sales point of view,
0:32:26 > 0:32:30I would look to market the property at between £70,000 and £75,000.
0:32:30 > 0:32:37For a sale on this property, I'd look to market the property at £75,000.
0:32:37 > 0:32:39If David was to sell, that's a profit of between £7,000
0:32:39 > 0:32:43and £12,000 before taxes and expenses.
0:32:43 > 0:32:45Is that in line with his expectations?
0:32:46 > 0:32:48No idea, really, what the house would sell for.
0:32:48 > 0:32:52It would probably be 20, 30 years - it will be my children who'll be
0:32:52 > 0:32:54interested in what it's going to sell for, not me!
0:32:54 > 0:32:57Well, I did say David thinks in the long-term!
0:32:57 > 0:33:01He's really interested in the rental yield of this two-bedroom terrace.
0:33:01 > 0:33:06So, what do the estate agents think he could get in the present?
0:33:06 > 0:33:07It's in very good condition.
0:33:07 > 0:33:11I think you could get quite a good rent for a two-bedroom property.
0:33:11 > 0:33:12£500 per calendar month.
0:33:12 > 0:33:15Well, I think it will be attractive to a tenant and the rental
0:33:15 > 0:33:17market's obviously very strong at the moment.
0:33:17 > 0:33:19So I would expect to achieve a rental figure
0:33:19 > 0:33:22of between £450 to £500 per calendar month.
0:33:24 > 0:33:29That top figure would give David a yield of over 9.5%.
0:33:29 > 0:33:31Yes, I think that's roughly in the right ballpark
0:33:31 > 0:33:34for what this house would let for. Yeah.
0:33:34 > 0:33:37David has already agreed to slightly less than that figure.
0:33:37 > 0:33:40But there's a good reason for that.
0:33:40 > 0:33:44It's actually going to someone who's been in one of my other houses.
0:33:44 > 0:33:46And he's done quite a lot of the work here.
0:33:47 > 0:33:50And as he was working on the house, he wanted to live in it.
0:33:50 > 0:33:54And negotiated a tenancy with me.
0:33:54 > 0:33:58A little bit less than the market rate,
0:33:58 > 0:34:01as a thank you to him for the great work he's done for me.
0:34:03 > 0:34:06I think the thing that's given me most pleasure is just seeing
0:34:06 > 0:34:08the neighbours' reaction
0:34:08 > 0:34:11as this empty, derelict house has been restored
0:34:11 > 0:34:13and that the street is back to what it should be.
0:34:13 > 0:34:16This house has gone well. I'm very pleased with it.
0:34:16 > 0:34:17Very pleased with the result.
0:34:21 > 0:34:24A success story in Manchester, then.
0:34:24 > 0:34:27Will we find another here in Chesterton, Staffordshire,
0:34:27 > 0:34:29just outside Newcastle-under-Lyme?
0:34:31 > 0:34:32What am I here to see?
0:34:32 > 0:34:35Well, it's a property that started out with a guide price
0:34:35 > 0:34:40of £39,000 plus, which was amended to £45,000 on the day.
0:34:40 > 0:34:42Now, that does happen quite often
0:34:42 > 0:34:44and it's something that's worth looking out for.
0:34:44 > 0:34:50The property itself...was this - it's a two-bedroom mid-terrace.
0:34:50 > 0:34:52Let's take a look.
0:34:54 > 0:34:57- DOOR SQUEAKS - Oh! Squeaky door!
0:34:59 > 0:35:01Get a bit of lubricant on that for sure.
0:35:01 > 0:35:02Now, first thing I notice,
0:35:02 > 0:35:07up the stairs, a high, elevated position - we like that in a house.
0:35:07 > 0:35:10It sort of means there's less chance for potential rising damp.
0:35:10 > 0:35:13It also gives a nice sort of... I just like elevated positions.
0:35:13 > 0:35:15And also the possibility of a cellar.
0:35:15 > 0:35:17We'll investigate that in a second.
0:35:17 > 0:35:20Straight through the door, squeaky as it is,
0:35:20 > 0:35:24into your front living room area. Nice to see stripped floorboards.
0:35:24 > 0:35:27They need a bit of a sand, but we like those.
0:35:27 > 0:35:29cellar, fingers crossed. Yes,
0:35:29 > 0:35:30looks very positive.
0:35:30 > 0:35:33So get that waterproofed, damp-proofed down there
0:35:33 > 0:35:36and a very useful extra space. I do like these high ceilings.
0:35:36 > 0:35:40They've got a reasonably new central heating system.
0:35:40 > 0:35:45Stairs up to the bedrooms there, so that's a very traditional layout.
0:35:45 > 0:35:49And continuing into the rear of the property, you've got the kitchen.
0:35:49 > 0:35:52It's long, it's thin and it doesn't have any modern units.
0:35:52 > 0:35:58But it's a useful space and, all in all, yeah...starting point,
0:35:58 > 0:35:59big ticks.
0:36:01 > 0:36:02Yes, it does tick all the boxes,
0:36:02 > 0:36:07but the word that leaps into my head is "shabby". Nothing too wrong.
0:36:07 > 0:36:08The layout's OK.
0:36:08 > 0:36:11And I'm taking it as a good sign that there is no bathroom
0:36:11 > 0:36:12at the end of the kitchen.
0:36:13 > 0:36:16It's going to need updating, but there are some features
0:36:16 > 0:36:19worth keeping and some decent space to work with.
0:36:19 > 0:36:23It's not "Wow!" but it's also not "Whoa!"
0:36:23 > 0:36:25So, onwards and upwards.
0:36:27 > 0:36:30Well, up here, two bedrooms, both a good size.
0:36:30 > 0:36:32This is the one at the front of the property,
0:36:32 > 0:36:36and in here I notice the house has got double glazing, which is good.
0:36:36 > 0:36:39However, lots of condensation on that.
0:36:39 > 0:36:41And one thing which is bad about double glazing,
0:36:41 > 0:36:44it does tend to almost hermetically seal a house,
0:36:44 > 0:36:46and if it's left unoccupied for a while
0:36:46 > 0:36:49it can lead to all sorts of damp problems.
0:36:49 > 0:36:51So one of the first things you should do when you take over
0:36:51 > 0:36:55a property, open all the windows and just let the fresh air flow around.
0:36:55 > 0:36:59Up here, though, two bedrooms, and I do like this layout.
0:36:59 > 0:37:01More often than not in these kind of houses,
0:37:01 > 0:37:04you would expect the bathroom and loo to be out the back.
0:37:04 > 0:37:07But as you can see, past the bedroom on the left there you've got
0:37:07 > 0:37:11a bathroom and a separate loo, so that is really good news.
0:37:11 > 0:37:13And this place is a bit of a TARDIS, isn't it?
0:37:13 > 0:37:17The front doesn't look all that big, but inside, loads of space.
0:37:17 > 0:37:18# Steamy windows
0:37:21 > 0:37:23# Ain't nobody can see
0:37:23 > 0:37:26# Steamy windows
0:37:27 > 0:37:31# Coming from the body heat. #
0:37:31 > 0:37:34Well, steamy windows or not, one thing that's clear to see
0:37:34 > 0:37:39is that this is a good-sized house, albeit rather long and narrow.
0:37:39 > 0:37:42And that's due in part to the two-storey rear extension that
0:37:42 > 0:37:46accommodates the bathroom upstairs and the kitchen downstairs.
0:37:48 > 0:37:51Which is great for the inside space, but not so great for the outside,
0:37:51 > 0:37:56which is now not much more than a small yard and some outhouses.
0:37:56 > 0:37:59But nevertheless, I think there are more pluses than minuses here.
0:38:02 > 0:38:07What does a local estate agent make of the house and its current layout?
0:38:10 > 0:38:12The bathroom is upstairs, which is
0:38:12 > 0:38:14a real plus point for a terraced property.
0:38:14 > 0:38:17However, I would make the bathroom and toilet into one,
0:38:17 > 0:38:20make it more compact,
0:38:20 > 0:38:23and also reconfigure the shapes of the bedrooms,
0:38:23 > 0:38:25which would leave easily enough space
0:38:25 > 0:38:27for a small third bedroom,
0:38:27 > 0:38:30which would make an ideal nursery or an office.
0:38:31 > 0:38:32Hm, that's interesting,
0:38:32 > 0:38:35but would it be financially worth going through all
0:38:35 > 0:38:37the effort of creating a third bedroom
0:38:37 > 0:38:39on a house that was guided at 45,000?
0:38:42 > 0:38:46In this property's current layout, if refurbished and redecorated
0:38:46 > 0:38:52to a good standard, I'd confidently place this on the market for £70,000.
0:38:52 > 0:38:55If the upstairs layout of this property was reconfigured
0:38:55 > 0:38:57so there was a third bedroom,
0:38:57 > 0:39:02I would place this property on the market for £75,000-£80,000.
0:39:02 > 0:39:06That £80,000 has certainly got my attention!
0:39:06 > 0:39:07What about rental potential?
0:39:07 > 0:39:10In its currents two-bedroom layout,
0:39:10 > 0:39:15I would place it on the rental market for £425 per calendar month.
0:39:15 > 0:39:18If the third bedroom was added,
0:39:18 > 0:39:22I would place it on the rental market for £475 per calendar month.
0:39:22 > 0:39:26Well, adding a third bedroom would require considerable
0:39:26 > 0:39:30structural alterations and one of the bedrooms would then be smaller.
0:39:30 > 0:39:33I think keeping this in its traditional two-bed layout
0:39:33 > 0:39:34might be easier.
0:39:36 > 0:39:40So, a straightforward enough property in a decent location
0:39:40 > 0:39:42with a good guide price. A no-brainer, really.
0:39:42 > 0:39:44Let's see who agreed when it went under the hammer.
0:39:46 > 0:39:50Lot number 13 - it's a mid-terraced house, two-bed, part modernised,
0:39:50 > 0:39:53double glazed. Gas central heating.
0:39:53 > 0:39:55Bathroom is upstairs.
0:39:55 > 0:39:59Guide price amended to £45,000 on this.
0:39:59 > 0:40:02Can we get going at 30? 30, right in the middle. At £30,000.
0:40:02 > 0:40:0435 can I say now?
0:40:04 > 0:40:08At 30,000... 35 standing left. At 35.
0:40:08 > 0:40:1040 in the middle? 40 in the middle.
0:40:10 > 0:40:1245 standing left.
0:40:12 > 0:40:1540,000. I'll go in ones if it helps.
0:40:15 > 0:40:18It does - 41. 42.
0:40:18 > 0:40:2043? 43.
0:40:21 > 0:40:2344...
0:40:23 > 0:40:25At 44,000.
0:40:25 > 0:40:2844,500.
0:40:28 > 0:40:3045... 45 in the middle.
0:40:30 > 0:40:32And a half?
0:40:32 > 0:40:34New bidder, 45,500.
0:40:34 > 0:40:3646.
0:40:36 > 0:40:3846,500.
0:40:38 > 0:40:3947?
0:40:39 > 0:40:42No? Still with you in the middle.
0:40:42 > 0:40:45£47,000. Another 500 anywhere else?
0:40:45 > 0:40:47If not, 47 once...
0:40:47 > 0:40:4947 twice...
0:40:49 > 0:40:52Third and final time, at £47,000.
0:40:52 > 0:40:53You bought it. Well done.
0:40:57 > 0:40:59So, for £47,000,
0:40:59 > 0:41:04this two-bed terraced house in Chesterton was bought by Phil.
0:41:04 > 0:41:09Phil lives locally and this was his first investment property purchase.
0:41:10 > 0:41:13- Phil, good to meet you. - Thank you.- Congratulations!
0:41:13 > 0:41:15Tell me why you wanted to buy this house.
0:41:15 > 0:41:18I'd got some money to put into a property or something like that.
0:41:18 > 0:41:21I've got two young children and they could find it very hard to get
0:41:21 > 0:41:24on to the property market in years to come.
0:41:24 > 0:41:28So they could start young, let it out and, hopefully, it could be
0:41:28 > 0:41:31a step towards helping them in the right direction in future.
0:41:31 > 0:41:32How old are they?
0:41:32 > 0:41:35- I've got a six-year-old daughter and a four-year-old son.- Oh, wow!
0:41:35 > 0:41:38- Really starting them young, then!- Yup.
0:41:38 > 0:41:40Well, there's nothing like planning for the future.
0:41:40 > 0:41:44And though this was actually Phil's second choice on auction day,
0:41:44 > 0:41:46as first property development projects go,
0:41:46 > 0:41:48this really isn't a bad one.
0:41:51 > 0:41:53So, tell me what you're going to do to sort it out.
0:41:53 > 0:41:56New kitchen, new bathroom,
0:41:56 > 0:41:57new doors, skirting,
0:41:57 > 0:42:00architraves, and replaster and decorate throughout.
0:42:00 > 0:42:03OK. How much of it are you going to do yourself?
0:42:03 > 0:42:07I'm hoping to do quite a lot myself with a bit of help from some friends.
0:42:07 > 0:42:09What do you do? What's your job?
0:42:09 > 0:42:11- I own a construction company. - Oh, all right!
0:42:11 > 0:42:14- HE LAUGHS - That shouldn't be too difficult, then!
0:42:14 > 0:42:17No, I bought it to sort of fill my evenings
0:42:17 > 0:42:19and weekends with a bit of a hobby, really.
0:42:19 > 0:42:21OK, right.
0:42:21 > 0:42:23So none of the construction stuff, doing this and that,
0:42:23 > 0:42:25- fazes you at all.- None of it, no.
0:42:25 > 0:42:27That's why I had a brief walk-through.
0:42:27 > 0:42:31- There's nothing here that fazes me at all.- Right.
0:42:31 > 0:42:33Yeah, no problems with any of it, really.
0:42:33 > 0:42:36- I've got friends in different trades that can help me out.- Right.
0:42:36 > 0:42:38- But you do construction as your day job...- Yeah.
0:42:38 > 0:42:41Mainly the commercial side of stuff more than domestic.
0:42:41 > 0:42:44What, shops, offices...?
0:42:44 > 0:42:49- Yeah, industrial units, flooring and all that sort of stuff.- Right, OK.
0:42:49 > 0:42:51So you do that as your day job and evenings and weekends you're going
0:42:51 > 0:42:54to be here getting hands dirty doing plastering and electrics
0:42:54 > 0:42:55and plumbing...
0:42:55 > 0:42:58Yeah, I've done my own house, worked on my sister's house,
0:42:58 > 0:43:00worked on girlfriends' houses.
0:43:00 > 0:43:02Yeah, there's been a long line and this is the first one
0:43:02 > 0:43:05I've done for myself as an investment.
0:43:06 > 0:43:08Yes, there's no doubting that this should be pretty
0:43:08 > 0:43:10straightforward for Phil.
0:43:10 > 0:43:13If he hasn't got the skills for certain jobs,
0:43:13 > 0:43:15he knows a man who can.
0:43:15 > 0:43:18I think the only real challenge will be doing a full-time job
0:43:18 > 0:43:21and working on this at evenings and weekends,
0:43:21 > 0:43:23especially when you've got a young family.
0:43:23 > 0:43:25of course, he is doing it for them,
0:43:25 > 0:43:28so I'm sure they'll be grateful to him in the end.
0:43:29 > 0:43:31What's the timescale?
0:43:31 > 0:43:34I'm hoping to have it turned around in six months,
0:43:34 > 0:43:36which I don't think is too unrealistic, really.
0:43:36 > 0:43:41- How much money do you think?- I've got a budget, roughly, of £10,000.
0:43:41 > 0:43:43Not stuck with any particular budget,
0:43:43 > 0:43:46but I'm hoping to bring it in for less than that.
0:43:46 > 0:43:48So any changes to the layout?
0:43:48 > 0:43:50What about the back, the kitchen area?
0:43:50 > 0:43:52I'm going to keep the traditional layout.
0:43:52 > 0:43:55I don't want to start doing anything too big.
0:43:55 > 0:43:57No walls to be moved, nothing like that.
0:43:57 > 0:44:01Just literally turn it round and sort of renovate it, modernise it
0:44:01 > 0:44:05and see if we can get it rented or sold.
0:44:05 > 0:44:07Well, congratulations!
0:44:07 > 0:44:08- Good luck with that.- Cheers.
0:44:10 > 0:44:14So, Phil starting his own property investment portfolio
0:44:14 > 0:44:17with this place. Or is he doing it for his six-and-four-year-old?
0:44:17 > 0:44:21I wonder what property prices will be like when they've grown up.
0:44:21 > 0:44:23Food for thought.
0:44:23 > 0:44:26In terms of this place, yeah, not too much to do
0:44:26 > 0:44:29and I'm sure he'll be just fine. But you never know.
0:44:29 > 0:44:31You can find out how he gets on later in the show.
0:44:34 > 0:44:38Now, getting the property for the right price is the first step
0:44:38 > 0:44:39toward success.
0:44:39 > 0:44:42But the second stage is just as important -
0:44:42 > 0:44:47sticking to your plans and budget is the best route to a decent profit.
0:44:47 > 0:44:49So how did our buyers get on? Let's find out.
0:44:52 > 0:44:54We are back in Maidstone in Kent.
0:44:54 > 0:44:57Earlier in the programme, Stuart and his wife Lindsay
0:44:57 > 0:45:00paid 74,000 for this one-bedroomed flat
0:45:00 > 0:45:02as their first investment property.
0:45:04 > 0:45:06- Why do you think this is a good investment?- Because it's Maidstone,
0:45:06 > 0:45:08we know the area really well.
0:45:08 > 0:45:10We rented our first flat just across the road,
0:45:10 > 0:45:14so we're thinking if we would live somewhere, other people will.
0:45:15 > 0:45:17The couple are both police officers.
0:45:17 > 0:45:20Lindsay was on maternity leave with the couple's second baby,
0:45:20 > 0:45:21due in a week and a half.
0:45:23 > 0:45:26If the freeholder agreed, they'd hoped to replace the windows.
0:45:26 > 0:45:30And I thought the central heating could do with replacing as well.
0:45:30 > 0:45:32What about things internally in the flat?
0:45:32 > 0:45:36We've got a water tank in there that takes a lot of space in the kitchen.
0:45:36 > 0:45:40Hoping to replace that with a combi, and either make an open plan kitchen
0:45:40 > 0:45:43or at least make the kitchen larger by removing that.
0:45:43 > 0:45:47I was surprised Stuart had set a budget of just 3,000 to 5,000.
0:45:47 > 0:45:51But he did have some leftover units from a previous refurbishment
0:45:51 > 0:45:53he was going to use.
0:45:53 > 0:45:55And the timescale?
0:45:55 > 0:45:58A month if I'm left to do it with no baby.
0:45:58 > 0:46:00If baby comes, I'd say two to three.
0:46:00 > 0:46:06Well, it's now 14 weeks later and baby Paige is now six weeks old.
0:46:10 > 0:46:13And look at the lovely flat that Stuart has successfully
0:46:13 > 0:46:15delivered as well!
0:46:17 > 0:46:20# I'm going to watch you shine
0:46:20 > 0:46:25# Gonna paint a sign so you'll always know
0:46:25 > 0:46:29# As long as one and one is two
0:46:31 > 0:46:34# There could never be a father
0:46:34 > 0:46:38# Loves his daughter more than I love you. #
0:46:40 > 0:46:43I'm really pleased to see the storage radiators have been
0:46:43 > 0:46:45replaced in the bedroom and the hallway.
0:46:45 > 0:46:49But as Lindsay explains, the combi boiler just wasn't feasible.
0:46:49 > 0:46:53So, in the front room, we re-wallpapered throughout.
0:46:53 > 0:46:57Just general paintwork, skirting boards and ceiling,
0:46:57 > 0:46:59and new windows installed.
0:46:59 > 0:47:02We had new heaters, electric heaters installed.
0:47:02 > 0:47:05We couldn't go for gas central heating, so we just upgraded them.
0:47:05 > 0:47:09We initially wanted to move this cupboard and expand the kitchen,
0:47:09 > 0:47:12but we couldn't because there's no gas in the building,
0:47:12 > 0:47:14so we couldn't change the system.
0:47:14 > 0:47:17So obviously we weren't given permission to do that.
0:47:17 > 0:47:19Apart from replacing the windows,
0:47:19 > 0:47:24Stuart has done the majority of the work himself with help from his dad.
0:47:24 > 0:47:25The airing cupboard has remained,
0:47:25 > 0:47:28but the flat did look in pretty good nick.
0:47:28 > 0:47:30Yeah, the actual condition of the flat was all right,
0:47:30 > 0:47:33everything was OK. It was just a bit dated.
0:47:33 > 0:47:36The kitchen was extremely dated. I think that was from the 1980s.
0:47:36 > 0:47:39Unfortunately, we had to keep the same shape of the kitchen
0:47:39 > 0:47:41because we couldn't get permission to make it larger.
0:47:41 > 0:47:45So, new worktops, new cupboards, cooker top, new sinks -
0:47:45 > 0:47:48everything has all been put in and fresh bit of paint on them.
0:47:48 > 0:47:51In the end, Stuart left the bathroom suite
0:47:51 > 0:47:54and just changed the flooring and added a matching wall colour.
0:47:56 > 0:48:00Stuart is a keen DIYer and he and Lindsay have done up
0:48:00 > 0:48:02several properties they've lived in and then sold.
0:48:02 > 0:48:05But this flat was the couple's first separate investment property
0:48:05 > 0:48:09and they thought they had the timetable all sorted out.
0:48:10 > 0:48:13The idea was, Stuart would come up here even if I was overdue
0:48:13 > 0:48:16and get it all done and everything would be great.
0:48:16 > 0:48:19But I was so heavily pregnant, with a year-and-a-half child
0:48:19 > 0:48:21running around, so that wasn't going to happen.
0:48:21 > 0:48:23I needed him at home.
0:48:23 > 0:48:26Eventually, once we got in a bit of routine at home, we started coming up
0:48:26 > 0:48:31once a week and prepping it all, to come and wallpaper and paint.
0:48:31 > 0:48:34The toddler got dumped on grandparents
0:48:34 > 0:48:37and the newborn obviously came with us
0:48:37 > 0:48:40and we had to take it in turns - one would do something
0:48:40 > 0:48:42while the other looked after her and go from there.
0:48:42 > 0:48:45It was quite nice, got a bit of family time, the three of us.
0:48:45 > 0:48:48Now, with no combi boiler in the end, I'm keen to find out
0:48:48 > 0:48:54if Stuart did manage to keep to that very small budget of 3,000-5,000.
0:48:54 > 0:48:57The budget was pretty good. We got 4,100 in the end.
0:48:57 > 0:49:00It worked out quite nicely.
0:49:00 > 0:49:02Well, I am impressed.
0:49:02 > 0:49:04With the 74,000 they paid at auction,
0:49:04 > 0:49:09that takes their total investment to £78,100.
0:49:09 > 0:49:12The couple are still thinking of extending the 74-year lease
0:49:12 > 0:49:15if they keep the property and rent it out.
0:49:15 > 0:49:18So, have they decided against selling?
0:49:18 > 0:49:19Well, we have different opinions.
0:49:19 > 0:49:22Lindsay wants to rent the place, I want to sell it
0:49:22 > 0:49:26and hopefully take a profit and make more houses and do the same thing.
0:49:26 > 0:49:28So we'll just see who wins between the two of us.
0:49:28 > 0:49:32Well, maybe making that decision will be a bit easier when Stuart
0:49:32 > 0:49:36and Lindsay hear the valuations from two local estate agents.
0:49:37 > 0:49:42Coming back today, I think it's a good transformation. Really smart.
0:49:42 > 0:49:44They've done a perfect job.
0:49:44 > 0:49:46I particularly like the fact that they've styled it very simply -
0:49:46 > 0:49:51it's plain walls, plain carpet and nothing to offend anybody.
0:49:51 > 0:49:54I think it's an excellent property to have as a portfolio
0:49:54 > 0:49:57if you're letting, because it's a relatively modern property,
0:49:57 > 0:50:00so the maintenance issues are fairly negligible.
0:50:00 > 0:50:02I think the property would rent really well.
0:50:02 > 0:50:05It's a property for a couple or a single person
0:50:05 > 0:50:07and it's town centre, which is perfect.
0:50:07 > 0:50:10And how much income could the flat generate?
0:50:10 > 0:50:16If I were to put this property up to let, I would expect to get 550.
0:50:16 > 0:50:20They might even squeeze £600 per calendar month.
0:50:20 > 0:50:24I would expect to achieve around £575 per calendar month.
0:50:24 > 0:50:30A yield of almost 9%, based on £575 per calendar month.
0:50:30 > 0:50:32Will that convince Stuart to rent it out?
0:50:32 > 0:50:33No, I want to sell it.
0:50:35 > 0:50:38I want to rent it. I think it's a good income.
0:50:38 > 0:50:40- But you want to sell, don't you?- Yeah.
0:50:41 > 0:50:46Oh, a battle of wills here. And what about Stuart's preferred option?
0:50:46 > 0:50:48What could it resell for?
0:50:48 > 0:50:50More than the £78,100 they invested?
0:50:52 > 0:50:54If I was to put this property on the market
0:50:54 > 0:50:58I would expect to achieve something in the region of £90,000.
0:50:58 > 0:51:01I would expect this property to achieve around £100,000.
0:51:01 > 0:51:04A potential profit of between
0:51:04 > 0:51:09£11,900 and £21,900, minus taxes and fees.
0:51:09 > 0:51:14Anything above 90, to be honest, I'd be quite happy to sell it.
0:51:14 > 0:51:17Well, no matter who gets their way on this flat,
0:51:17 > 0:51:20you have to admire them for taking on their first property
0:51:20 > 0:51:24development project just as their second baby was about to be born.
0:51:24 > 0:51:27And doing such a good job, too!
0:51:27 > 0:51:29I think the timing has been...
0:51:29 > 0:51:32You know, it could have been better a month before or
0:51:32 > 0:51:33a couple of months later.
0:51:33 > 0:51:36But the right property came along at the right location,
0:51:36 > 0:51:40and so the timing we just had to accept.
0:51:43 > 0:51:47In the Staffordshire town of Chesterton,
0:51:47 > 0:51:51family life was also on the mind of Phil, who paid £47,000 for this
0:51:51 > 0:51:55two-bed mid-terrace as an investment for his children.
0:51:55 > 0:51:57What are you going to do to sort it out?
0:51:57 > 0:52:00Literally, new kitchen, new bathroom,
0:52:00 > 0:52:03new doors, skirting, architraves
0:52:03 > 0:52:05and re-plaster and decorate throughout.
0:52:05 > 0:52:09Phil lives a couple of miles away in Newcastle-under-Lyme,
0:52:09 > 0:52:13and he wanted to put his savings to better use and to provide some
0:52:13 > 0:52:16financial security for his six-year-old daughter
0:52:16 > 0:52:18and four-year-old son.
0:52:18 > 0:52:19What's your job?
0:52:19 > 0:52:23- I own a construction company. - Oh, all right! - HE LAUGHS
0:52:23 > 0:52:25That shouldn't be too difficult, then!
0:52:25 > 0:52:28No, I bought it to sort of fill my evenings
0:52:28 > 0:52:30and weekends with a bit of a hobby, really.
0:52:30 > 0:52:33# My hobby
0:52:33 > 0:52:35# I want to you for my hobby
0:52:35 > 0:52:37# After work I need something to do. #
0:52:39 > 0:52:42I've done my own house, worked on my sister's house,
0:52:42 > 0:52:44worked on girlfriends' houses.
0:52:44 > 0:52:48Yeah, it's been a long line and this is the first one I've done myself
0:52:48 > 0:52:50as an investment.
0:52:50 > 0:52:54Phil had set a budget for the work of around £10,000,
0:52:54 > 0:52:57and thought it would take about six months.
0:52:57 > 0:52:59And that's when we returned.
0:53:01 > 0:53:04Well, Phil has smartened up front all right.
0:53:07 > 0:53:10And there's something special on the inside, too.
0:53:22 > 0:53:26The exterior windows and doors remain, like the fire.
0:53:26 > 0:53:30But with new floors, skirting and interior doors,
0:53:30 > 0:53:33I reckon the house now has a more cottagey feel.
0:53:33 > 0:53:37And opening up the bathroom and former loo works a treat.
0:53:37 > 0:53:41In the bathroom, basically, new ceilings, took out the partition
0:53:41 > 0:53:45wall that was here, splitting up the bathroom and the separate toilet.
0:53:45 > 0:53:49Replastered it, rewired it, some tiling
0:53:49 > 0:53:51and fitted a new bathroom suite.
0:53:51 > 0:53:55Really quite happy how the bathroom's come out, and I think it was
0:53:55 > 0:53:58worth the effort with spending a little bit more on the suite.
0:54:00 > 0:54:04Phil has plenty of experience in refurbishing properties
0:54:04 > 0:54:08and he's followed the tried and trusted technique in this house -
0:54:08 > 0:54:12invest in the two most important rooms, the bathroom and kitchen.
0:54:15 > 0:54:19In the kitchen I've done a new ceiling, new plastering,
0:54:19 > 0:54:22I've re-waterproofed the walls, waterproofed the floor.
0:54:22 > 0:54:24New kitchen units and appliances.
0:54:24 > 0:54:28Glass splashbacks were done by a friend of mine,
0:54:28 > 0:54:29and, basically, I'm really glad
0:54:29 > 0:54:32how it's come out for quite a small kitchen.
0:54:34 > 0:54:37Phil fitted the bathroom and kitchen himself, and he did
0:54:37 > 0:54:41some of the carpentry work with help from his dad, who's a joiner.
0:54:41 > 0:54:42I done quite a lot myself
0:54:42 > 0:54:45and I've had some help from some really good friends.
0:54:45 > 0:54:49I had to get a plastering contractor in and electrical contractor
0:54:49 > 0:54:51to do the rewire.
0:54:51 > 0:54:54The work's taken six months, as Phil anticipated.
0:54:54 > 0:54:58So, did it end up just being his weekend building hobby,
0:54:58 > 0:55:00or was he able to get down here more often?
0:55:00 > 0:55:02I've been on site quite a lot.
0:55:02 > 0:55:04Even if I haven't got here on the day,
0:55:04 > 0:55:07I've been calling in in the evening and just checking things,
0:55:07 > 0:55:10making sure the heating is on and everything is drying out properly.
0:55:12 > 0:55:15Phil did discover some unexpected damp which required treating,
0:55:15 > 0:55:18but the general condition wasn't too bad.
0:55:18 > 0:55:21Outside, we've basically just given it a lick of paint
0:55:21 > 0:55:24and replaced the guttering, that sort of thing.
0:55:24 > 0:55:27I've had to drop some of the patio level out the back
0:55:27 > 0:55:30because of damp issues that were on it.
0:55:30 > 0:55:33But other than that, just a lick of paint and a tidy up.
0:55:33 > 0:55:37The fresh white paintwork does make a big difference, but did Phil
0:55:37 > 0:55:42keep his budget sheet black and white or did that go into the red?
0:55:42 > 0:55:47My original budget was 10,000 and, give or take 200 either way,
0:55:47 > 0:55:49I'm pretty much on target.
0:55:50 > 0:55:54Well, let's just say you kept to £10,000, Phil.
0:55:54 > 0:55:56And, with the £47,000 you paid at auction,
0:55:56 > 0:56:01it means you have a total of £57,000 invested here.
0:56:01 > 0:56:05Originally, it was an investment for the children to help with any
0:56:05 > 0:56:09future university fees or anything on the property ladder
0:56:09 > 0:56:10when they were but older.
0:56:10 > 0:56:13But now it's looking like I might sell it,
0:56:13 > 0:56:17reinvest the money in another one, and try and go again.
0:56:17 > 0:56:20A good time to see what two local estate agents think
0:56:20 > 0:56:24the potential resale value could be.
0:56:24 > 0:56:26There is very little I would do differently.
0:56:26 > 0:56:29I feel the property has maximised its potential and it's just ready
0:56:29 > 0:56:31and waiting for someone to move in.
0:56:31 > 0:56:34I think the quality of the kitchen and bathroom fittings is quite high
0:56:34 > 0:56:35and this will help the property sell.
0:56:35 > 0:56:38Having inset lighting in the ceilings is also a bonus.
0:56:38 > 0:56:43I really like the kitchen and especially the bathroom as well.
0:56:43 > 0:56:45They are really modern, really stylish.
0:56:45 > 0:56:47And if Phil does decide to rent,
0:56:47 > 0:56:49how much income could the property generate?
0:56:49 > 0:56:53Given the high spec of this property, I think you could quite easily
0:56:53 > 0:56:57achieve on the rental market £425 per calendar month.
0:56:57 > 0:57:00I'd put this property up for rent at £450 per calendar month.
0:57:00 > 0:57:03A potential yield of around 9%.
0:57:03 > 0:57:06Would that tempt Phil to look for tenants?
0:57:06 > 0:57:09My initial intention was to rent,
0:57:09 > 0:57:12but I'm going to sell it on, I think, and then go for another one.
0:57:12 > 0:57:17Let's see if the six months' hard work could result in any profit.
0:57:17 > 0:57:21Will the agents value the property any more than the £57,000
0:57:21 > 0:57:23that Phil has invested here?
0:57:23 > 0:57:25Given the finish on the property,
0:57:25 > 0:57:30I'd happily have this property on the market at £70,000.
0:57:30 > 0:57:32I'd put this property on the market for £74,950.
0:57:34 > 0:57:38So, a potential profit of £13,000-£18,000
0:57:38 > 0:57:39before taxes and fees.
0:57:39 > 0:57:41A worthwhile return, Phil?
0:57:43 > 0:57:44For the area it's in,
0:57:44 > 0:57:48I sort of expected it to be around that sort of figure.
0:57:48 > 0:57:51And if it doesn't hang around and he finds a buyer, then what?
0:57:53 > 0:57:55If it sells relatively quickly,
0:57:55 > 0:57:57I'd like to see what I can find
0:57:57 > 0:58:00and just not jump into anything too quickly.
0:58:00 > 0:58:04Follow the market a little bit and see if I can find something else again.
0:58:08 > 0:58:11Has all this whetted your appetite for property developing?
0:58:11 > 0:58:14Make sure you tune in next time to Homes Under The Hammer.
0:58:14 > 0:58:16- We'll see then.- Goodbye.- Goodbye.