0:00:02 > 0:00:04Hello, now people get involved in buying property
0:00:04 > 0:00:06for all sorts of different reasons,
0:00:06 > 0:00:10either as a place to live in or work in, or to rent out or sell.
0:00:10 > 0:00:13But the main concern is getting value for money.
0:00:13 > 0:00:15Now, how do you go about doing that?
0:00:15 > 0:00:18Well, maybe buying your next home under the hammer.
0:00:42 > 0:00:46Now, you do need to do your homework before you buy at auction.
0:00:46 > 0:00:49But once that's done, you could get yourself a real bargain.
0:00:49 > 0:00:52So here are the potential money-spinners that went
0:00:52 > 0:00:54under the hammer on today's show.
0:00:55 > 0:01:00This purchase in Deal, Kent, proved a big surprise for our buyer.
0:01:01 > 0:01:03And when I got it, I couldn't believe it.
0:01:04 > 0:01:08In Crewe, this huge terrace surprises me.
0:01:08 > 0:01:13Head upstairs and you suddenly get a lightning bolt.
0:01:14 > 0:01:16While in Derby,
0:01:16 > 0:01:19the best reason I've heard yet for getting into the property game.
0:01:21 > 0:01:25It's made me feel young again, something to get up for.
0:01:26 > 0:01:29All these properties have been sold at auction.
0:01:29 > 0:01:31We'll find out who bought them and what they paid for them
0:01:31 > 0:01:33when they went under the hammer.
0:01:33 > 0:01:34Sold.
0:01:46 > 0:01:50# It's a done deal... #
0:01:52 > 0:01:55This is Deal in Kent, just eight miles from Dover
0:01:55 > 0:01:59and the south coast. And what a beautiful spot it is, too.
0:01:59 > 0:02:05Miles of beach, a castle, narrow winding shopping streets,
0:02:05 > 0:02:06just lovely.
0:02:06 > 0:02:09And I reckon, if you are after traditional seaside charm
0:02:09 > 0:02:14with a boutiquey vibe, then Deal is your destination.
0:02:21 > 0:02:26Deal does seem, well, ideal.
0:02:26 > 0:02:29So, how long would it take to paddle from here
0:02:29 > 0:02:32to today's property opportunity?
0:02:32 > 0:02:3450 seconds.
0:02:34 > 0:02:36Yep, that's right, you can walk
0:02:36 > 0:02:40from the beach to the property I'm here to see in under a minute.
0:02:40 > 0:02:41Which is amazing!
0:02:41 > 0:02:44And the property itself, well, it is a three bedroom maisonette,
0:02:44 > 0:02:48and it had a guide price of £85,000.
0:02:52 > 0:02:54This maisonette is on the first
0:02:54 > 0:02:57and second floor of this bay-fronted period property.
0:03:04 > 0:03:09First things first, this place feels huge. It is huge! Wow!
0:03:09 > 0:03:13It's incredibly dated. Look, there is woodchip wallpaper for days.
0:03:13 > 0:03:16This will take you for ever to get off but it will be a worthwhile job.
0:03:16 > 0:03:20The kitchen towards the back, again, that will need to be ripped out.
0:03:20 > 0:03:23You have got a little bathroom through here.
0:03:23 > 0:03:26I'm just wondering whether you have got any nice spindles here.
0:03:26 > 0:03:30So far, all the character has been stripped out of this place.
0:03:30 > 0:03:33Nice big room, you could have it as a bedroom, living room,
0:03:33 > 0:03:35not quite sure what you would do with it.
0:03:35 > 0:03:37You have the stairs leading to the upper floor and wow,
0:03:37 > 0:03:39look at this room!
0:03:39 > 0:03:42At the front of the property it's really sunny and bright
0:03:42 > 0:03:45and on a day like today, it really is fantastic.
0:03:45 > 0:03:46It would be great for entertaining.
0:03:46 > 0:03:50Look at this amazing bay window, although on closer inspection,
0:03:50 > 0:03:53you might want to get that refurbished.
0:03:53 > 0:03:55Check that out, a seaside view, marvellous.
0:03:58 > 0:04:03Well, the kitchen is tiny but there is room for a reconfiguration.
0:04:03 > 0:04:07And as a major bonus in a seaside location, it is a bright
0:04:07 > 0:04:09and sunny flat.
0:04:09 > 0:04:12# Everybody loves the sunshine...#
0:04:13 > 0:04:16I think this property has lots of potential
0:04:16 > 0:04:18if this floor is anything to go by.
0:04:18 > 0:04:21So what about upstairs?
0:04:21 > 0:04:23I do love this maisonette but upstairs,
0:04:23 > 0:04:25it does get less exciting, and again,
0:04:25 > 0:04:28I know I keep going on about woodchip wallpaper,
0:04:28 > 0:04:32but it is everywhere and it will be a big old exercise to get off.
0:04:32 > 0:04:36Not a bad master bedroom. Again, needs a bit of work.
0:04:36 > 0:04:40It gets worse as you go on. The blue room through here is very eaved.
0:04:40 > 0:04:42Lots of wallpaper falling on the floor
0:04:42 > 0:04:44so I would want to inspect the roof space.
0:04:44 > 0:04:47And the beigey room, well, very small.
0:04:47 > 0:04:50So you do have three bedrooms but they all need work,
0:04:50 > 0:04:54so whoever takes this on better have their cheque-book handy.
0:04:56 > 0:05:00And one of the things I would splash the cash on is an upstairs bathroom.
0:05:00 > 0:05:02You could also tweak the layout.
0:05:02 > 0:05:05That kitchen is quite small for such a large property.
0:05:05 > 0:05:08Maybe it could be moved into the bigger downstairs room.
0:05:08 > 0:05:12But really, that's all a lifestyle and a budget decision.
0:05:22 > 0:05:24The property is in a great location,
0:05:24 > 0:05:27so you wouldn't miss the absence of a garden.
0:05:28 > 0:05:31I think there's a lot going for it at that guide price of 85,000.
0:05:33 > 0:05:36Did a local estate agent agree?
0:05:36 > 0:05:39It is in a basic state of repair.
0:05:39 > 0:05:44But offers larger than average accommodation than most other
0:05:44 > 0:05:47maisonettes or flats in this area.
0:05:47 > 0:05:50What value would he put on this after a refurbishment?
0:05:52 > 0:05:55With a decent refurbishment and updating,
0:05:55 > 0:06:00I would estimate a value between 150 and £160,000.
0:06:00 > 0:06:01Wow!
0:06:01 > 0:06:05So if you were able to get it at anything like the guide price,
0:06:05 > 0:06:07there could be a significant profit to be made,
0:06:07 > 0:06:10even after refurbishment costs.
0:06:10 > 0:06:12Would it be a good buy-to-let investment?
0:06:12 > 0:06:15Could it achieve a decent rental?
0:06:15 > 0:06:20I would anticipate in the region of £650 per calendar month.
0:06:22 > 0:06:25On a sunny day, it is so easy to get carried away
0:06:25 > 0:06:28and just fall in love with a property by the seaside.
0:06:28 > 0:06:32But in this instance, it makes sound business sense, too.
0:06:32 > 0:06:35Let's see who else fell for this one at the auction.
0:06:40 > 0:06:42Good-looking property. It is a large maisonette.
0:06:42 > 0:06:44Three bedrooms, needs some improvement.
0:06:44 > 0:06:48But close to the seafront and good for the town centre as well.
0:06:48 > 0:06:50I guess we would like to start at £85,000.
0:06:50 > 0:06:53Where'd you want to start me? Ever the optimist.
0:06:53 > 0:06:54Where are you going to start me?
0:06:54 > 0:06:5885 I've got, straight in, £85,000, to the lady at the back.
0:06:58 > 0:07:02At 85,000, at 85. Now 90. At 90.
0:07:02 > 0:07:04I've got a bid of £85,000 from the lady
0:07:04 > 0:07:08sitting at the back on the aisle, at £85,000 I've got then.
0:07:08 > 0:07:12Maiden bidder. £85,000 sitting at the back for the first time.
0:07:12 > 0:07:17If there's no other bids? It would be a good buy at £85,000 or 88.
0:07:17 > 0:07:23- Second time that 85...- 86.- 86,000, you heard his voice. £86,000. 87 now?
0:07:23 > 0:07:27At 87. And eight. 88.
0:07:27 > 0:07:29At 89,000 I'm waiting.
0:07:29 > 0:07:35At £88,000, standing then by the entrance, 89 it's against you.
0:07:35 > 0:07:40If you're done, for the first time at £88,000? She's not, 89. Make it 90?
0:07:40 > 0:07:43At £89,000, it is back with you, then for the first time,
0:07:43 > 0:07:46second time at £89,000...
0:07:48 > 0:07:53Third and final time at 89,000, sold. £89,000.
0:07:53 > 0:07:56And the bidder with the red hat on is Mary.
0:08:00 > 0:08:02# Show me Mary
0:08:02 > 0:08:04# How does it go?
0:08:04 > 0:08:07# Show me Mary
0:08:07 > 0:08:10# Show me Mary...#
0:08:10 > 0:08:15Mary is a retired housekeeper from London, where she currently lives
0:08:15 > 0:08:20in a rental property and she has bought this maisonette for £89,000.
0:08:20 > 0:08:23That's only 4,000 over the guide price.
0:08:23 > 0:08:26Well, I said this was a business opportunity.
0:08:26 > 0:08:30I wanted to find out from Mary if that is what made her come to Deal.
0:08:31 > 0:08:35- Mary, congratulations.- Thank you. - You got a deal here.
0:08:35 > 0:08:39I mean, it is amazing that this was not that much over the guide price.
0:08:39 > 0:08:42- No.- Was it just a lucky streak, do you think, on the day?
0:08:42 > 0:08:43I think so.
0:08:43 > 0:08:48I mean, when I looked at this place, I fell in love with it straightaway.
0:08:48 > 0:08:51To be honest, I didn't think I'd get it.
0:08:51 > 0:08:54I said, "oh, no, there'll be so many people after it, it's hopeless."
0:08:54 > 0:08:58- And when I got it I couldn't believe it.- What about the price?
0:08:58 > 0:09:01I think it is quite good for the money.
0:09:01 > 0:09:02I know things to be done
0:09:02 > 0:09:06but when you go to auction that is what you go for because it's cheaper!
0:09:06 > 0:09:08You sound like a lady that has experience.
0:09:08 > 0:09:11- Have you ever done anything like this before?- Oh, yes.
0:09:11 > 0:09:15Years ago I bought out some small places and I sold them,
0:09:15 > 0:09:22made a profit. And I got a place in London.
0:09:22 > 0:09:25And I only got it wallpapered.
0:09:26 > 0:09:29And the floor done and I did the kitchen,
0:09:29 > 0:09:31and I sold it on for a good profit.
0:09:33 > 0:09:36Mary got started by selling her own home in Forest Gate,
0:09:36 > 0:09:43London, which she originally bought in 1977 for £9,000. Blimey!
0:09:43 > 0:09:47As we speak, Mary owns and rents six properties in different
0:09:47 > 0:09:52parts of Kent, so what are her plans for number seven?
0:09:52 > 0:09:54I would probably let it out.
0:09:54 > 0:09:58Eventually, I'll sell it but I will let it out first,
0:09:58 > 0:10:00maybe move in to it.
0:10:00 > 0:10:02Obviously, it does need a bit of work, does that put you off?
0:10:02 > 0:10:06- Most people would run a mile. - No, no, it is a challenge.
0:10:06 > 0:10:07It's exciting.
0:10:07 > 0:10:11You see what it is like now, and what it is going to look like.
0:10:11 > 0:10:14Have you got a vision in your mind of what this place is going
0:10:14 > 0:10:18- to look like?- Oh, yes. It will be a lovely new kitchen,
0:10:18 > 0:10:21a new shower, new carpets.
0:10:21 > 0:10:25What sort of budget have you put aside for a job like this?
0:10:25 > 0:10:28- Maybe 10 to 15,000.- Really?
0:10:28 > 0:10:32- Do you think you will get it done for 15 grand?- I hope so.
0:10:33 > 0:10:36Mary plans to finance the project through the rentals
0:10:36 > 0:10:39she collects from her other properties.
0:10:39 > 0:10:42She has estimated a time frame of just two months to complete
0:10:42 > 0:10:45the work. But where to begin?
0:10:47 > 0:10:51I think the walls first, before anything else.
0:10:51 > 0:10:54The kitchen then the bathroom.
0:10:54 > 0:10:56I'll leave the carpets last.
0:10:56 > 0:11:01Now you have got a very small kitchen in a very big maisonette.
0:11:01 > 0:11:03Are you just going to have to live with that or you could
0:11:03 > 0:11:06think about relocating the kitchen?
0:11:06 > 0:11:09No, I think I'll keep the kitchen but they are very good,
0:11:09 > 0:11:12when they put in new kitchens nowadays, they can do anything.
0:11:12 > 0:11:16They can make they can make it much more spacious looking, really.
0:11:16 > 0:11:20Mary certainly knows her own mind and as cool as a cucumber.
0:11:20 > 0:11:23She plans to source local tradesmen to do the work
0:11:23 > 0:11:25and will visit from time to time.
0:11:25 > 0:11:27Is there nothing that concerns Mary?
0:11:30 > 0:11:35You don't seem fazed by any of this or stressed at all.
0:11:35 > 0:11:39- No, no, I just love property.- What is it about property you love so much?
0:11:39 > 0:11:40It's a challenge.
0:11:41 > 0:11:43It's an interest.
0:11:43 > 0:11:46Mary, congratulations, good luck with this project.
0:11:46 > 0:11:47Thank you very much.
0:11:49 > 0:11:54Well, Mary has got a cracking deal here in Deal, and I'm sure
0:11:54 > 0:11:58with her experience, she will get it sorted out in no time at all.
0:11:58 > 0:12:01You can find out how it goes later in the show.
0:12:06 > 0:12:12I'm in Crewe in Cheshire, a town with lots of railways and trains
0:12:12 > 0:12:16passing through, literally linking North, South, East and West.
0:12:16 > 0:12:21But interestingly, it was 1837 when the first railway junction
0:12:21 > 0:12:26was built, but the town itself wasn't built until six years later.
0:12:26 > 0:12:30So this is strangely a town that was named after the railway
0:12:30 > 0:12:32rather than the other way round.
0:12:40 > 0:12:44Things are looking up in Crewe with a recent regeneration programme
0:12:44 > 0:12:46helping to boost the town.
0:12:46 > 0:12:49But rolling stock is still prepared and maintained here so the
0:12:49 > 0:12:53railway continues even today to be an important element in the economy.
0:12:56 > 0:13:00Well, with the expansion of the railways came an inevitable
0:13:00 > 0:13:06property boom. With some very fine houses built around that time.
0:13:06 > 0:13:10And arriving on time at the auction, was this place.
0:13:10 > 0:13:13It is on this fairly busy road which isn't ideal,
0:13:13 > 0:13:16but the house itself looks pretty impressive.
0:13:16 > 0:13:20£65,000 was the guide price, three bedrooms with room up top,
0:13:20 > 0:13:21let's take a look.
0:13:25 > 0:13:27Now, that's interesting.
0:13:27 > 0:13:32Not that sort of imposing from the outside, but the moment you
0:13:32 > 0:13:33walk through the front door,
0:13:33 > 0:13:38a few hints of what might be in store, because whenever you
0:13:38 > 0:13:42see lovely ceramic work like this, and I know we are near the
0:13:42 > 0:13:45Potteries here, but it's still the upper end of the housing market in
0:13:45 > 0:13:49its day, that would have been fitted out like that, so that's great.
0:13:49 > 0:13:51And lots of lovely little features.
0:13:51 > 0:13:55The fact that they've gone to the trouble on these bits of plasterwork
0:13:55 > 0:13:59to have a face on both sides, you know, this is really exciting.
0:13:59 > 0:14:04I wonder what's hidden behind some of the modern stuff that's
0:14:04 > 0:14:05been put up? What have we got?
0:14:05 > 0:14:07Basically, a big entrance hall area here.
0:14:07 > 0:14:10Front room there, a really good size.
0:14:10 > 0:14:13Bit of an odd little space under the stairs there.
0:14:13 > 0:14:17Heading through the property into a really nice-sized rear lounge.
0:14:17 > 0:14:19Big ceilings.
0:14:19 > 0:14:22I'm just a bit confused because odd stuff like this catches my eye!
0:14:22 > 0:14:24Why is there a window there?
0:14:24 > 0:14:28It is throwing light into that strange area under the stairs.
0:14:28 > 0:14:32Modern fireplace, that's a bit of a shame, put something else there.
0:14:32 > 0:14:34But lots of light in here, partly due to that big window
0:14:34 > 0:14:39and then that very strange sort of, roof light, not really a roof light,
0:14:39 > 0:14:41an odd window thing. I say I'm a bit confused
0:14:41 > 0:14:44because I've never seen anything like that before.
0:14:44 > 0:14:46But it does throw loads light into this room.
0:14:46 > 0:14:51And then carrying on through, a really nice-sized kitchen area.
0:14:51 > 0:14:54Who'd have thought it from the outside, eh?
0:14:57 > 0:15:02In its time, this house might have been occupied by someone with
0:15:02 > 0:15:08a reasonable rank in the railways. Possibly even with live-in servants.
0:15:08 > 0:15:12So that could explain the original features and the light and space.
0:15:12 > 0:15:17# Can't you see what's wrong with the world ain't me
0:15:17 > 0:15:20# Ain't nothing like it used to be
0:15:20 > 0:15:22# Ain't nothing like it once was
0:15:22 > 0:15:26# Ain't nothing like it ought to be
0:15:26 > 0:15:27# Nothing right no more... #
0:15:27 > 0:15:31It is a shame we don't build them like this any more.
0:15:32 > 0:15:39Head upstairs and you suddenly get a lightning bolt of realisation,
0:15:39 > 0:15:43of the potential of this place.
0:15:43 > 0:15:45Cos you've got the staircase there,
0:15:45 > 0:15:48you've got access to some attic space up there.
0:15:48 > 0:15:51That could be a bedroom if you had the right building regulations
0:15:51 > 0:15:54and things sorted out for it. The corridor goes down there.
0:15:54 > 0:15:59You've got bathroom, more bedrooms, another bedroom here
0:15:59 > 0:16:02and so you start thinking about this, as not just a house,
0:16:02 > 0:16:06there's possible flats, possible house of multiple occupation...
0:16:06 > 0:16:11Erm, yeah. Whoa-hoo-hoo!
0:16:13 > 0:16:16It's sad to think the days of these big family houses are gone,
0:16:16 > 0:16:20but they are very adaptable to how we live now.
0:16:20 > 0:16:24With some good planning and decent renovations, so far, I'm thinking
0:16:24 > 0:16:28this could be a very profitable lot, or have I spoken too soon?
0:16:30 > 0:16:32Whoa. That's not good.
0:16:32 > 0:16:36Here in the front bedroom, just look at that skirting board.
0:16:36 > 0:16:41I think that's been cut in the middle to allow for what is
0:16:41 > 0:16:47clearly a potentially quite serious sagging of this part of the house.
0:16:47 > 0:16:51I don't know, somebody has obviously pulled these floorboards up already.
0:16:51 > 0:16:54The same concerns as me perhaps.
0:16:54 > 0:16:57Erm, my guess is that a bit of water ingress,
0:16:57 > 0:17:01maybe the joists here have sunk in the wall.
0:17:01 > 0:17:05Whatever happens, you've got to sort this out, because at the moment,
0:17:05 > 0:17:10this whole floor dips quite severely to this point in the room.
0:17:10 > 0:17:12Not ideal.
0:17:12 > 0:17:14'I think it's always wise to get surveys done
0:17:14 > 0:17:16'before you plunge into bidding.
0:17:16 > 0:17:20'But in this case I would absolutely definitely get a structural survey,
0:17:20 > 0:17:23'just to ensure this house isn't going to be sliding
0:17:23 > 0:17:26'even closer to that busy street than it is already.
0:17:28 > 0:17:30'Personally, I prefer this place
0:17:30 > 0:17:32'the further you get away from the front.'
0:17:33 > 0:17:35Well, at the rear of the property,
0:17:35 > 0:17:39you've got this really good sized rear yard,
0:17:39 > 0:17:43beautiful forest flame there, and this little shed area.
0:17:43 > 0:17:47I mean, it's good. If that was it, you know, I'd be fairly pleased.
0:17:47 > 0:17:51But, no, there's a lot more, because out of the rear gate
0:17:51 > 0:17:55and you've suddenly got this huge great area, including a garage.
0:17:55 > 0:17:59Fantastic for parking and, well, I don't know, d'you reckon you could
0:17:59 > 0:18:02maybe apply for planning permission for another house on here?
0:18:02 > 0:18:06It suddenly opens up the potential for this place massively!
0:18:06 > 0:18:09'This is a lot of property, a lot of garden,
0:18:09 > 0:18:14'and a lot of opportunity for that guide price of £65,000.
0:18:17 > 0:18:19'What does a local estate agent think?'
0:18:21 > 0:18:24It's a very spacious property, nice high ceilings,
0:18:24 > 0:18:27and it's got large reception rooms.
0:18:27 > 0:18:30There's lots of potential for the property to, uh,
0:18:30 > 0:18:34you could either convert and split into two apartments for an investor
0:18:34 > 0:18:37or do the property up and rent it out.
0:18:37 > 0:18:39'It seems unlikely as the preferred option,
0:18:39 > 0:18:43'but what if this house was to be kept as a family home and renovated?
0:18:43 > 0:18:45'What would it fetch on the market?'
0:18:46 > 0:18:52We would look to market the property at around £105-£110,000.
0:18:52 > 0:18:54'And what about the rental returns?'
0:18:54 > 0:18:56If the property was rented,
0:18:56 > 0:19:02I would say you would be looking £550 to £575 per calendar month.
0:19:04 > 0:19:07So it really is property that just keeps on giving,
0:19:07 > 0:19:10a great little opportunity for someone, and I just hope that
0:19:10 > 0:19:14whoever takes it on keeps the forest flame, one of my favourite plants.
0:19:14 > 0:19:17Let's go to the auction and see who bought it.
0:19:20 > 0:19:23'We join the auction for this lot late in the day.'
0:19:23 > 0:19:25Lot 78, so, what's this?
0:19:25 > 0:19:2760 to start?
0:19:27 > 0:19:2955, then?
0:19:29 > 0:19:3155 bid, thank you.
0:19:31 > 0:19:33At £55,000.
0:19:33 > 0:19:3560 can I say now?
0:19:35 > 0:19:3760, lady's bid seated.
0:19:37 > 0:19:40At £60,000. 65?
0:19:40 > 0:19:43£65,000. 70?
0:19:43 > 0:19:47£70,000 seated. 75?
0:19:47 > 0:19:49D'you want to go one?
0:19:50 > 0:19:5271.
0:19:52 > 0:19:5572? 72, half.
0:19:55 > 0:19:5772,500.
0:19:57 > 0:20:0073. No?
0:20:00 > 0:20:04That's 73,000, your bid, madam, at £73,000.
0:20:04 > 0:20:06Another 500 anywhere else?
0:20:06 > 0:20:10If not, £73,000 for the first time.
0:20:10 > 0:20:14£73,000 for the second time.
0:20:14 > 0:20:18Third and final time, £73,000.
0:20:18 > 0:20:20HE BANGS GAVEL You bought it, well done.
0:20:20 > 0:20:24'And that successful bidder getting the lot for £73,000 was Amy,
0:20:24 > 0:20:27'who was there with her father, Peter, a former builder.
0:20:30 > 0:20:33'Amy, at the tender age of five, used to go to the auctions,
0:20:33 > 0:20:37'and has been inspired by her father to make property her career.
0:20:39 > 0:20:43'She bought her first property when she was 19, and she's now an
0:20:43 > 0:20:47'estate agent as well as buying and managing properties for clients.'
0:20:48 > 0:20:52- Amy, great to meet you.- Great to meet you too.- Congratulations.
0:20:52 > 0:20:54- Thank you. - Why do you want to buy the place?
0:20:54 > 0:20:57Well, we bought it on behalf of an investor purely for a job
0:20:57 > 0:21:00specifically here in Crewe for social services,
0:21:00 > 0:21:03so it's a type of sheltered accommodation.
0:21:03 > 0:21:04Wow, what a worthwhile project.
0:21:04 > 0:21:07Explain your involvement in this, then?
0:21:07 > 0:21:08I'm a property consultant
0:21:08 > 0:21:11and I am in charge of the investment on behalf of an investor client.
0:21:11 > 0:21:14So the investor client wants to put some money into property
0:21:14 > 0:21:17but wants something interesting to do with it.
0:21:17 > 0:21:19I find the client, find the property,
0:21:19 > 0:21:23pull the job together and set up the contract of let.
0:21:23 > 0:21:25And for an investor, they get what?
0:21:25 > 0:21:27The investor gets a whopping yield,
0:21:27 > 0:21:31so he produces a property which is fairly unusual for area,
0:21:31 > 0:21:35so this building, if we converted it, would be worth, say, 90,000.
0:21:35 > 0:21:38But we're going to spend a little bit more.
0:21:38 > 0:21:41So it's a fair risk in terms of we're spending more to be able to
0:21:41 > 0:21:43house those specific requirements.
0:21:43 > 0:21:47So the contract is already put in place for the let,
0:21:47 > 0:21:49we've already agreed the spec of the property,
0:21:49 > 0:21:53so it's produced for that job, and the yield therefore is much higher.
0:21:53 > 0:21:56In terms of return, then, on investment, what will that be?
0:21:56 > 0:21:59- About 20% yield, the property.- 20%?!
0:21:59 > 0:22:02SHE LAUGHS Yes!
0:22:02 > 0:22:05- Yeah.- Wow! So, this building and all the investment
0:22:05 > 0:22:08- will be paid back in five years? - It should be.
0:22:08 > 0:22:10Is that because of the rents that can be commanded,
0:22:10 > 0:22:13given the extra facilities you're putting in are higher?
0:22:13 > 0:22:15That's right, yeah. Given the type of client,
0:22:15 > 0:22:16and the risks involved with it,
0:22:16 > 0:22:19the specific requirements they need on the property,
0:22:19 > 0:22:23it's paid per room, so we're able to get a much higher yield.
0:22:25 > 0:22:27'This sounds like a really worthwhile sort of investment.
0:22:27 > 0:22:30'The people who will move in will be given the chance to lead
0:22:30 > 0:22:34'an independent life for the first time, but with the support
0:22:34 > 0:22:38'they need, and at the same time, it's a good business opportunity.'
0:22:39 > 0:22:42So the investor has to buy the property in the first place.
0:22:42 > 0:22:45- That's right.- And then pay for the refurbishment.- That's correct.
0:22:45 > 0:22:48But then...and you mastermind the whole thing, or...?
0:22:48 > 0:22:50Absolutely, so I'd see it from start to finish.
0:22:50 > 0:22:52So why this house particularly, then?
0:22:52 > 0:22:55Its size and its location, so we'd look for somewhere
0:22:55 > 0:22:59that's on a busy road so they can get about into town on buses, etc.
0:22:59 > 0:23:03And we've got a precedent here of flats and shared houses in the area.
0:23:04 > 0:23:08'But before this house can start serving its worthwhile purpose,
0:23:08 > 0:23:10'it needs a good overhaul.
0:23:10 > 0:23:13'With her experience in creating these types of homes,
0:23:13 > 0:23:16'Amy hopes to have it ready in four to six months,
0:23:16 > 0:23:19'and though there's a few structural issues to contend with,
0:23:19 > 0:23:23'reckons a budget of £50,000 should be enough to renovate
0:23:23 > 0:23:25'the place to the standard required.'
0:23:26 > 0:23:29We're going to do an awful lot in here but that's the best thing.
0:23:29 > 0:23:32If we find something that we can get back to a shell very quickly,
0:23:32 > 0:23:35we can really give it a redesign.
0:23:35 > 0:23:38So we'll be moving the kitchen, create a social area, moving
0:23:38 > 0:23:42all the bathrooms, we'll be placing en suites through all the bedrooms.
0:23:42 > 0:23:45New plastering, new electrics, new plumbing, new windows.
0:23:45 > 0:23:47We're insulating the building
0:23:47 > 0:23:50because the bills will be inclusive in the tenancy.
0:23:50 > 0:23:52- Right.- So, landlord's paying the bills.
0:23:52 > 0:23:54We obviously need to be able to keep it really warm
0:23:54 > 0:23:57for the particular type of client that we're talking about.
0:23:57 > 0:23:59So we're doing extra jobs
0:23:59 > 0:24:03in order to prevent bills in future, as well as those now.
0:24:03 > 0:24:05Right, and it will end up being how many bed,
0:24:05 > 0:24:09or how many sort of self-contained bed, if you like, rooms?
0:24:09 > 0:24:12We should have five self-contained rooms in this building.
0:24:12 > 0:24:15One for the carer and four for those that are learning.
0:24:15 > 0:24:17Well, listen, congratulations.
0:24:17 > 0:24:19It sounds like a very good win-win situation all round,
0:24:19 > 0:24:21and, er, look forward to seeing how you get on.
0:24:21 > 0:24:23Thank you very much.
0:24:23 > 0:24:25Well, what a great story.
0:24:25 > 0:24:27Who would have thought this fairly unassuming
0:24:27 > 0:24:30but big once you get inside property in Crewe
0:24:30 > 0:24:32could end up being put to such a good use,
0:24:32 > 0:24:35and deliver some lucky investor one of the biggest returns
0:24:35 > 0:24:37I've come across in quite a while.
0:24:37 > 0:24:40Still, work to be done before we get to that point.
0:24:40 > 0:24:43You can find out how it goes later in the show.
0:24:45 > 0:24:48Later on, in Derby, well...
0:24:48 > 0:24:51I couldn't have said it better myself.
0:24:51 > 0:24:53If it makes a profit, he's done a fantastic job.
0:24:53 > 0:24:55If you're losing money, he's an idiot!
0:24:57 > 0:25:00And back in Crewe, Amy has reached her limit.
0:25:02 > 0:25:05The budget is over, we've blown the budget.
0:25:10 > 0:25:14What could be better than to be beside the seaside in a light
0:25:14 > 0:25:16and airy place with a sea view?
0:25:16 > 0:25:19Well, that's what we found
0:25:19 > 0:25:22when, earlier, in the coastal town of Deal in Kent,
0:25:22 > 0:25:25we saw this three-bed maisonette that was just seconds away
0:25:25 > 0:25:29from the seafront and with a sea view from its bay window.
0:25:29 > 0:25:33The first floor definitely had a touch of charm about it.
0:25:33 > 0:25:36Unfortunately, the top floor was more "ugh".
0:25:36 > 0:25:42It was bought at auction for 89,000 by Mary, a retired
0:25:42 > 0:25:45housekeeper from London who was surprised to land the property.
0:25:45 > 0:25:50- So was it just a lucky streak, do you think, on the day?- I think so.
0:25:50 > 0:25:55I mean, when I looked at this place, I fell in love with it straightaway.
0:25:55 > 0:25:57To be honest, I didn't think I'd get it.
0:25:57 > 0:26:00I said, "Oh, no, there'll be so many people after it. It's hopeless."
0:26:00 > 0:26:03And when I got it, I couldn't believe it!
0:26:03 > 0:26:06So smitten was Mary with the maisonette,
0:26:06 > 0:26:09she was even contemplating moving in.
0:26:09 > 0:26:12But the first two floors needed to be spruced up and revitalised,
0:26:12 > 0:26:16and Mary had 10,000 to 15,000 to spend on what she hoped
0:26:16 > 0:26:18would be a two-month renovation job.
0:26:20 > 0:26:24But it was eight months later we caught up with Mary to find out
0:26:24 > 0:26:26if her place in Deal was now ideal.
0:26:31 > 0:26:35The front room, with that lovely, big bay window,
0:26:35 > 0:26:38is certainly looking good. And to help the place feel more homely,
0:26:38 > 0:26:42Mary's placed some items of furniture that certainly add
0:26:42 > 0:26:45a touch of class to the surroundings.
0:26:45 > 0:26:48Next door, the second reception room has been redecorated with
0:26:48 > 0:26:49brand-new carpet.
0:26:51 > 0:26:54At the rear of the maisonette, the old shower room has been
0:26:54 > 0:26:58replaced with brand-new units and new wall and floor tiles.
0:26:58 > 0:27:01But it's the kitchen that has had the major overhaul.
0:27:02 > 0:27:05With contemporary new units and tasteful tiling, it was,
0:27:05 > 0:27:09for Mary, the most crucial aspect to renovating this maisonette.
0:27:10 > 0:27:13When I saw it, it was in a terrible state.
0:27:13 > 0:27:16It must have been about 40, 50 years old.
0:27:16 > 0:27:20I knew it was a complete write-off. It was horrible, and the windows...!
0:27:20 > 0:27:25But I was determined it was going to get done. And it did in the end.
0:27:25 > 0:27:28It's a nice place in which to rattle those pots and pans
0:27:28 > 0:27:30and cook up a scrummy meal.
0:27:32 > 0:27:35Upstairs, the three bedrooms have been redecorated, all in soft,
0:27:35 > 0:27:39neutral colours that can look good when bathed in sunlight.
0:27:39 > 0:27:42So the maisonette make over is now complete.
0:27:42 > 0:27:46The electrics were up to scratch, so no rewiring was necessary.
0:27:46 > 0:27:50But several walls needed replastering, and some still had on
0:27:50 > 0:27:54that dreaded woodchip wallpaper for Mary's builder to contend with.
0:27:54 > 0:27:58The horrible woodchip, it all had to come off.
0:27:58 > 0:28:00And I even came back once and watched him.
0:28:00 > 0:28:05And what a job they have to do to get it all together!
0:28:05 > 0:28:07Ooh, I wouldn't like to do it, I tell you.
0:28:07 > 0:28:10Neither would I, Mary, neither would I!
0:28:10 > 0:28:14Stripping woodchip wallpaper is one of the worst jobs
0:28:14 > 0:28:18when renovating and, more importantly, it's so time-consuming.
0:28:18 > 0:28:21But surely that didn't account for the six-month overrun?
0:28:21 > 0:28:26I had to get permission to get the place done as it was a leasehold.
0:28:26 > 0:28:30And, unfortunately, it took about two months to go through.
0:28:30 > 0:28:35I was nearly giving up, but I got the permission in the end.
0:28:38 > 0:28:41It took longer even to get the right builder.
0:28:43 > 0:28:47I went through quite a few builders, you know, giving quotes
0:28:47 > 0:28:50and different things, until I got this one.
0:28:50 > 0:28:53And luckily enough, he did everything.
0:28:53 > 0:28:56And Mary's verdict on the final result?
0:28:56 > 0:29:01I am really delighted with the place now. I think it's fantastic.
0:29:04 > 0:29:07And to get that pleased look from Mary,
0:29:07 > 0:29:09it took more than she expected,
0:29:09 > 0:29:15with her original budget of 10,000-15,000 pushed to £17,000.
0:29:15 > 0:29:17With her purchase price of 89,000,
0:29:17 > 0:29:21that would take her total spend to £106,000.
0:29:21 > 0:29:25And while overspending on the budget is no-one's cup of tea,
0:29:25 > 0:29:29the location here certainly makes up for any downsides.
0:29:29 > 0:29:32Oh, it's the coast. I've got a thing about the coast.
0:29:32 > 0:29:34I've always liked water. I just love...
0:29:34 > 0:29:37I mean, I'm born under Pisces, the fish, if you believe in it,
0:29:37 > 0:29:41but I've always had a thing with water, you know.
0:29:41 > 0:29:45One drawback is that the salty sea air from the seaside
0:29:45 > 0:29:49sometimes can play havoc with the paintwork, and Mary does plan
0:29:49 > 0:29:52to get permission from the leaseholder to get it seen to.
0:29:52 > 0:29:55But after all this time, has Mary come to a decision about
0:29:55 > 0:29:59what to do with the maisonette - to let, to sell or move in?
0:29:59 > 0:30:01Mary?
0:30:01 > 0:30:03Well, I'm going to let it first and then just play it by ear.
0:30:03 > 0:30:05You know, along the way,
0:30:05 > 0:30:09if property prices go up in the next couple of years,
0:30:09 > 0:30:13I may sell it on or move in myself.
0:30:15 > 0:30:17Mary is really pleased with the maisonette
0:30:17 > 0:30:19and she's keeping her options open.
0:30:19 > 0:30:22A smart move in a very uncertain market.
0:30:22 > 0:30:27What do two local estate agents make of her £106,000 investment?
0:30:27 > 0:30:32Starting with the agent who saw the maisonette before the renovation.
0:30:32 > 0:30:35The property has been updated
0:30:35 > 0:30:37in a neutral colour and format
0:30:37 > 0:30:41which is well-suited to the property, making it light and airy.
0:30:41 > 0:30:45This is a nice-sized apartment. It's all very tidily decorated.
0:30:45 > 0:30:48You've got nice, high ceilings. There's a lot of space here.
0:30:48 > 0:30:52But, could the layout here have been improved?
0:30:52 > 0:30:55Whilst the maisonette offers substantial accommodation,
0:30:55 > 0:30:59I would consider a second bathroom or shower room would have better use
0:30:59 > 0:31:01of the space to the top floor.
0:31:01 > 0:31:03If it were mine, I'd have adapted the layout
0:31:03 > 0:31:06slightly differently and probably made it two bedrooms
0:31:06 > 0:31:09and put a bathroom and maybe an en-suite upstairs.
0:31:09 > 0:31:14What rental returns can Mary now get for her spruced up apartment?
0:31:14 > 0:31:17I think if this property were let now in the current market,
0:31:17 > 0:31:22it would have a rental value of about £650 per calendar month.
0:31:22 > 0:31:28I would recommend a rental value in the region of £650 to £675
0:31:28 > 0:31:29per calendar month.
0:31:29 > 0:31:35If I can get even 650, 680, that would be good.
0:31:36 > 0:31:39If either those valuations could be met,
0:31:39 > 0:31:44then Mary would get a healthy annual yield of around 7.5%.
0:31:44 > 0:31:46But having spent £106,000 on the maisonette,
0:31:46 > 0:31:49what sort of resale value could Mary achieve?
0:31:49 > 0:31:53I think the value of selling this one now is going to be
0:31:53 > 0:31:56something in the order of £140,000 to £145,000.
0:31:56 > 0:32:02I would consider a market value for this property in the region of £150,000.
0:32:02 > 0:32:05If Mary could get either of those figures,
0:32:05 > 0:32:10then she could stand to make a pre-tax profit of 34,000-44,000.
0:32:10 > 0:32:13Oh, that's not bad. Not bad at all.
0:32:16 > 0:32:19So it's another successful addition for Mary's portfolio,
0:32:19 > 0:32:25but even now, she's got no intention of putting her feet up and relaxing.
0:32:25 > 0:32:30When I'm selling the property, then I'm going to use the money to
0:32:30 > 0:32:34buy another property at auction and see if I can get that done up.
0:32:34 > 0:32:38See what... See what I can make out of it. I mean, any...
0:32:38 > 0:32:42Even 15, 20 grand is OK without killing yourself, isn't it?
0:32:50 > 0:32:53Derby, with a population of just under a quarter of a million,
0:32:53 > 0:32:55is a thriving city.
0:32:59 > 0:33:01With a history of local manufacturing,
0:33:01 > 0:33:04it has been key since the Industrial Revolution.
0:33:07 > 0:33:11The property I am here to see is just a mile-and-a-half south
0:33:11 > 0:33:13of the city centre.
0:33:13 > 0:33:18A two-bedroomed, ex-local authority property which, according to the
0:33:18 > 0:33:23auction catalogue, requires a scheme of renovation and improvement.
0:33:23 > 0:33:27That could explain the relatively low guide price of £30,000 plus.
0:33:30 > 0:33:32Now, of course, renovation
0:33:32 > 0:33:35and improvement can mean a whole lot of different things to
0:33:35 > 0:33:39a whole lot of different people, from a quick lick of paint to
0:33:39 > 0:33:41knocking down walls and taking out fireplaces.
0:33:41 > 0:33:47And it comes back down to that old question that you have to start out with -
0:33:47 > 0:33:51"Why am I doing this renovation? Is it for me to live in?"
0:33:51 > 0:33:54In which case, go for it and do whatever you want.
0:33:54 > 0:33:58Or is it a property which I'm going to rent out or sell on?
0:33:58 > 0:34:00In which case, you have to think about how much you'll spend.
0:34:00 > 0:34:02So, with that in mind, what are we going to do here?
0:34:02 > 0:34:05Again, it starts, "Are we going to rent it or live in it?"
0:34:05 > 0:34:07So let's assume we're going to do the middle ground.
0:34:07 > 0:34:09We're going to maybe live in it, maybe rent it,
0:34:09 > 0:34:11so we want to get it just nice.
0:34:11 > 0:34:13First thing I'd say is strip the floorboards back. I like those.
0:34:13 > 0:34:15That would be beautiful.
0:34:15 > 0:34:18Um, you're going to have to do something with the roof,
0:34:18 > 0:34:20but the layout is quite nice.
0:34:20 > 0:34:24Basically, large living room here and then through to the kitchen.
0:34:24 > 0:34:27You could contemplate taking out this wall here to create
0:34:27 > 0:34:31a real nice, open-plan living space, which would be quite pleasant.
0:34:31 > 0:34:34The kitchen itself, whatever you do, is going
0:34:34 > 0:34:36to need total refurbishment.
0:34:36 > 0:34:40Um, uh-oh! As will the electrics, by the look of it.
0:34:40 > 0:34:43Of course, that's something you need to be looking at
0:34:43 > 0:34:44when you come to see a property.
0:34:44 > 0:34:46Look to find where the electric board is.
0:34:46 > 0:34:50Old, cartridge-type fuses with a bit of fuse wire in them,
0:34:50 > 0:34:53that indicates the whole thing is going to have to be ripped out and replaced.
0:34:53 > 0:34:56But, doing the renovation, you'll probably want to do that anyway.
0:34:56 > 0:34:59At least you'll know the house is then sorted.
0:34:59 > 0:35:03One thing I don't notice down here is a loo, which is good news,
0:35:03 > 0:35:06because it means it's upstairs. Fantastic.
0:35:16 > 0:35:19And, yes indeed, there it is - complete with a fine example
0:35:19 > 0:35:22of that great bathroom favourite, an avocado suite.
0:35:22 > 0:35:26So, a completely new refit is needed here, I think,
0:35:26 > 0:35:28to bring it up to modern standards.
0:35:31 > 0:35:33The bedrooms are both a good size,
0:35:33 > 0:35:36although when you have installed your new central heating,
0:35:36 > 0:35:40you could get rid of that hot water tank and make this room even bigger.
0:35:41 > 0:35:45And the garden has space in spades.
0:35:45 > 0:35:47The only slight issue is, only half of it's yours.
0:35:47 > 0:35:50At the moment, it's very sort of communal.
0:35:50 > 0:35:53Either you think about keeping it like this,
0:35:53 > 0:35:56if you get on with the neighbours, or you put a fence in here.
0:35:56 > 0:35:59Other than that, it needs a bit of tidying up.
0:35:59 > 0:36:04Useful little old air raid shelter there, which you can store stuff in.
0:36:04 > 0:36:07But what I'm much more interested in is this.
0:36:07 > 0:36:10It's basically access to an outside loo. At the moment,
0:36:10 > 0:36:13you can't actually get in there because it's full of stuff.
0:36:13 > 0:36:17Now, much as I love outdoor loos, I think that space
0:36:17 > 0:36:20could be much better utilised in the kitchen.
0:36:20 > 0:36:22So, basically, knock down that internal wall,
0:36:22 > 0:36:24open up the kitchen, that'd be great.
0:36:24 > 0:36:26Other than that, just a few hours with a Strimmer
0:36:26 > 0:36:29and a hedge trimmer and you'd be well set.
0:36:29 > 0:36:32It's an overall modernisation, then, but then again, if this
0:36:32 > 0:36:37is going to be a rental project or a quick resale, it's important to
0:36:37 > 0:36:41work out costs beforehand and factor them into the potential end value.
0:36:46 > 0:36:50Let's find out what a local property expert thinks about this house.
0:36:52 > 0:36:55The whole house needs a complete refurbishment scheme
0:36:55 > 0:36:59from electrics to plumbing, probably for some damp-proofing.
0:36:59 > 0:37:03So you're replastering, putting a new kitchen, a new bathroom in it,
0:37:03 > 0:37:06you're putting a central heating system in it.
0:37:06 > 0:37:07The list is endless, really.
0:37:08 > 0:37:11Because it's a local authority-built house,
0:37:11 > 0:37:14it's actually quite utilitarian and quite spartan.
0:37:14 > 0:37:17On the other hand, it's solid and it's well-built,
0:37:17 > 0:37:20so you've actually got quite a lot of potential here.
0:37:20 > 0:37:25The big question is, with a guide price of £30,000, is it worth
0:37:25 > 0:37:30spending a lot on refurbishing this house for sale or rental?
0:37:30 > 0:37:34Once renovated, this would have a value, in this location,
0:37:34 > 0:37:37of probably no more than about £75,000.
0:37:37 > 0:37:40In terms of rental value,
0:37:40 > 0:37:44you would rent this out all day long at £475 a calendar month.
0:37:44 > 0:37:50Hmm! Well, a bit of renovation required indeed with this one but,
0:37:50 > 0:37:51intrinsically, a good house.
0:37:51 > 0:37:55So, let's see who fancied it when it went under the hammer.
0:37:58 > 0:38:01Lot number one is in the Cavendish area of the city.
0:38:01 > 0:38:04It's a two-bedroomed town house.
0:38:04 > 0:38:08Would somebody like to start me at 25,000? 25,000 for it.
0:38:08 > 0:38:12Who's got 20 to start me? Thank you, sir. £20,000 is the opening bid.
0:38:12 > 0:38:1321 somewhere?
0:38:13 > 0:38:1621 I've got at the back. 22 is bid.
0:38:16 > 0:38:2123, 24, 24, 25, the lady has bid.
0:38:21 > 0:38:2326,000, 27 is bid.
0:38:23 > 0:38:2528 I've got.
0:38:25 > 0:38:29£29,000. 30 is bid here.
0:38:29 > 0:38:31At 30,000... 31...
0:38:31 > 0:38:33'Plenty of interest for this one, then,
0:38:33 > 0:38:37'and bidding continued at a fair old pace in £1,000 increments
0:38:37 > 0:38:41'until it reached £46,000, which is where we rejoin it.'
0:38:41 > 0:38:44£46,000, I'll take five...
0:38:44 > 0:38:4746,500, 47,
0:38:47 > 0:38:4947,500, 48,
0:38:49 > 0:38:5248,500, 49,000,
0:38:52 > 0:38:5549,500, 50,000...
0:38:56 > 0:39:00£50,000... 500, 51 is bid.
0:39:00 > 0:39:03£51,000, 500 elsewhere?
0:39:03 > 0:39:08At 51,000, it goes for the first time, for the second time...
0:39:08 > 0:39:10500, 52.
0:39:10 > 0:39:13At 52,000... At five again?
0:39:13 > 0:39:18500, 53, 53,000.
0:39:20 > 0:39:26Definite? £53,000, going once, going twice, third time...
0:39:27 > 0:39:29Yours, sir, well done. 53,000, thank you.
0:39:29 > 0:39:33Well, that was a frantic auction, but the man who got it
0:39:33 > 0:39:36when the gavel finally fell was retired civil engineer, Pat.
0:39:40 > 0:39:42Pat retired four years ago
0:39:42 > 0:39:46and he bought this property with an eye to enhancing his pension.
0:39:46 > 0:39:49He came to meet me back at the house with his eldest son,
0:39:49 > 0:39:51also called Pat.
0:39:52 > 0:39:55- Pat, Pat...- Yeah. - ..great to meet you both.
0:39:56 > 0:39:58Tell me why you wanted to buy this place.
0:39:58 > 0:40:00I was bored out of me face sitting at home,
0:40:00 > 0:40:03because I retired two or three years ago,
0:40:03 > 0:40:07and I bought a caravan in Skegness, I've still got it
0:40:07 > 0:40:12and I'm still bored, so I thought I'd go and buy a house and do it up.
0:40:12 > 0:40:15Right, so the money side of things didn't come into it?
0:40:15 > 0:40:18- The money side, I obviously do want a profit.- Right.
0:40:18 > 0:40:22I haven't done it to lose, but if I break even, I'd be still happy.
0:40:22 > 0:40:24Right. And what's your involvement going to be?
0:40:24 > 0:40:28He's going to replaster, rewire, plumb radiators,
0:40:28 > 0:40:30- and then they're getting the blokes in to redecorate...- Right.
0:40:30 > 0:40:32..skirting boards and everything like that.
0:40:32 > 0:40:36- So whose house is it going to be? - My dad's. It's yours?- Mm-hmm. - Fantastic.
0:40:36 > 0:40:38With a view to renting it out, or selling it on?
0:40:38 > 0:40:42No. If it's successful, I'll want to sell it straightaway.
0:40:42 > 0:40:44I'm going to put it on the market for two months,
0:40:44 > 0:40:47and if it doesn't sell, it's going back to the auction.
0:40:47 > 0:40:48- Right.- With a reserve on.
0:40:49 > 0:40:53Buying a house because you're bored is something I've heard before.
0:40:53 > 0:40:56But their devil-may-care attitude about being happy
0:40:56 > 0:40:58if he breaks even is definitely a new one on me!
0:41:00 > 0:41:02What do you think about what your dad's up to?
0:41:02 > 0:41:06If it makes a profit, he's done a fantastic job. If you're losing money, he's an idiot.
0:41:08 > 0:41:12But can't you convince him to, like, take a bit more of a leisurely life, kind of thing?
0:41:12 > 0:41:18- He's a young 69-year-old.- Right. - 68.- Well, I nearly said... 69 soon!
0:41:19 > 0:41:22But you can't tell him. You can't tell him what to do.
0:41:22 > 0:41:24- He does his own thing, he always has done.- Right.
0:41:24 > 0:41:29But surely there are less stressful ways of keeping busy.
0:41:29 > 0:41:31What about, like, hobbies like golf or... You know?
0:41:31 > 0:41:33- I don't want to be playing golf.- No?
0:41:33 > 0:41:37It's not my sort of hobby, no, definitely not.
0:41:37 > 0:41:38Walking in the countryside?
0:41:38 > 0:41:41- I do a lot of walking, still, but I'm still bored.- Gardening?
0:41:41 > 0:41:45I bought a caravan, I go to clubs in Skegness, which is fantastic.
0:41:45 > 0:41:49- Like nightclub-type places?- Yeah, yeah...- An entertainment club, yeah.
0:41:49 > 0:41:51- Your dad's a raver, is he? - Yeah, bit of a raver.
0:41:51 > 0:41:54- He has done all his life! - Yeah, yeah!
0:41:54 > 0:41:55And a nutter!
0:41:55 > 0:41:57THEY LAUGH
0:41:57 > 0:41:58Good, fantastic.
0:41:58 > 0:42:03So, you're off partying down in Skegness, but this is home, is it?
0:42:03 > 0:42:06- It is home, yeah.- Tell me what you're going to do to the place.
0:42:06 > 0:42:11New windows, new doors externally, all new doors internally,
0:42:11 > 0:42:14architrave, skirting board, kitchen, central heating...
0:42:14 > 0:42:17- New radiators, central heating. - It's all been ordered now.
0:42:17 > 0:42:21And as for the open-plan situation out the back,
0:42:21 > 0:42:23there are plans to put up a fence.
0:42:23 > 0:42:26And who's going to begin the work, then? Are you going to be...?
0:42:26 > 0:42:28- I've got contractors in. - I'll be here as well.
0:42:28 > 0:42:31So, hang on a minute, hang on, you've got contractors in?
0:42:31 > 0:42:34- Yeah...- You see, I thought you'd be here, like, slaving away,
0:42:34 > 0:42:38doing stuff, but you'll be sitting here reading the paper while other people do it?
0:42:38 > 0:42:43Nothing wrong with that, is there?! You just told me to take a leisurely life and you've convinced me!
0:42:43 > 0:42:46So I'm going to do it. Have you got a chair, please?
0:42:46 > 0:42:47THEY LAUGH
0:42:47 > 0:42:49Oh, brilliant. OK. You are going to...
0:42:49 > 0:42:51Are you going to get your hands dirty a bit?
0:42:51 > 0:42:53Oh, without a shadow of a doubt.
0:42:53 > 0:42:57I can decorate and paint and I can do quite a few things.
0:42:57 > 0:43:01And in terms of internal layout changes, any plans for that?
0:43:01 > 0:43:04Just the kitchen. We're knocking a couple of walls down on the far side
0:43:04 > 0:43:06- and one wall where there's an outside loo.- Right.
0:43:06 > 0:43:08We're knocking that down.
0:43:08 > 0:43:10What amount of money are you going to spend on it, do you think?
0:43:10 > 0:43:14- I'd say... - No more than 12.- Definitely...
0:43:14 > 0:43:17- No more than 12,000. - No, no more than 12,000, no.
0:43:17 > 0:43:20- A timescale?- Three months. - Three months.
0:43:20 > 0:43:24So, bearing in mind you paid 53 for it and your maximum spend is 12,
0:43:24 > 0:43:28that stands you for 65 plus your fees and everything like that.
0:43:28 > 0:43:31How much are you hoping you might be able to move it on for?
0:43:31 > 0:43:35- Well, I'm hoping it goes between 80 and 85.- Right.
0:43:35 > 0:43:37- Up to 20 grand, then.- Mm.
0:43:37 > 0:43:40And what will you do if you sell it? Will you do another one?
0:43:40 > 0:43:43Oh, definitely. Unless I get real hassle on this one, like.
0:43:43 > 0:43:47If he gives me as much help as he's promised, definitely!
0:43:47 > 0:43:49Yeah, occupy me mind until I die!
0:43:49 > 0:43:51But this is... You've got a caravan down in Skeggy.
0:43:51 > 0:43:53This is going to be a summertime...
0:43:53 > 0:43:55This is going to be a wintertime thing.
0:43:55 > 0:43:57It is going to be a winter project every year,
0:43:57 > 0:43:59as long as I'm fit enough to do it.
0:43:59 > 0:44:03And while I've got him around me, I'm plenty fit enough.
0:44:03 > 0:44:06So, all in all, excited about taking it on?
0:44:06 > 0:44:08Yeah, I'm...
0:44:08 > 0:44:10It's made me feel young again.
0:44:10 > 0:44:15- It's made me feel something to get up for.- Good, well, congratulations.
0:44:15 > 0:44:17- Lovely to meet you both. - It's nice to meet you as well.
0:44:17 > 0:44:21- Good luck with it, look forward to seeing how you get on. - Nice to see you as well, like.
0:44:23 > 0:44:27Well, the two Pats certainly seem to have got it off pat
0:44:27 > 0:44:28when it comes to doing the renovation.
0:44:28 > 0:44:31Will it be pats on the back at the end of it all?
0:44:31 > 0:44:34Well, you can find out later in the show.
0:44:37 > 0:44:41Well, it has been quite a few months since we last saw those properties.
0:44:41 > 0:44:42Do they look any different?
0:44:42 > 0:44:45Has all that time and money been well spent?
0:44:45 > 0:44:46Let's go back and find out.
0:44:49 > 0:44:52It's back now to the railway city of Crewe where, earlier,
0:44:52 > 0:44:56we saw this Victorian three-bed house that had charm,
0:44:56 > 0:45:00lots of light and, most importantly, space.
0:45:00 > 0:45:04It was the perfect property to be an HMO, a house in multiple occupancy.
0:45:04 > 0:45:10In stepped Amy who had bought the house at auction for 73,000.
0:45:10 > 0:45:15Amy runs her own estate agency and has a huge portfolio of properties.
0:45:15 > 0:45:17But this wasn't to be another addition to her books
0:45:17 > 0:45:20because she hadn't bought this with her own money.
0:45:20 > 0:45:24- Explain your involvement in this? - I'm a property consultant.
0:45:24 > 0:45:28I'm in charge of the investment on behalf of an investor client.
0:45:28 > 0:45:31So the investor client wants to put some money into property,
0:45:31 > 0:45:33but wants something interesting to do with it.
0:45:33 > 0:45:37I find the client, find the property, pull the job together
0:45:37 > 0:45:39and set up the contract of let.
0:45:39 > 0:45:42And in this case, Amy had brought together an investor
0:45:42 > 0:45:45and social services with the aim of turning this house into a care
0:45:45 > 0:45:49facility which would be designed to help residents be
0:45:49 > 0:45:52prepared for independent living.
0:45:52 > 0:45:54And with the tenant contracts already signed,
0:45:54 > 0:45:59it was Amy's duty to get this place in shape on a budget of £50,000
0:45:59 > 0:46:01and a turnaround of four to six months.
0:46:03 > 0:46:07And when we returned six months later, there were new windows
0:46:07 > 0:46:11and doors installed. So kerb appeal was looking good.
0:46:11 > 0:46:14And inside, though it wasn't the finished article,
0:46:14 > 0:46:16work was well under way in the living
0:46:16 > 0:46:20accommodation from the former living room, soon to be one of the bedrooms
0:46:20 > 0:46:24to the rear dining room that is halfway to being the new kitchen.
0:46:24 > 0:46:27Everywhere there is plenty of signs of activity,
0:46:27 > 0:46:30from the plumbing to the new wiring and the decorating.
0:46:32 > 0:46:36And Amy was on hand to tell us about the story so far.
0:46:36 > 0:46:40We are having a complete renovation. We've replaced absolutely everything.
0:46:40 > 0:46:43We've done work on the exterior of the building,
0:46:43 > 0:46:46structural works to it, replaced windows, dry lined, replaced
0:46:46 > 0:46:52the electrics, plumbing, put in additional bathrooms, new kitchens.
0:46:52 > 0:46:55Basically, spot the thing that hasn't changed.
0:46:56 > 0:46:59It's almost a completely new interior
0:46:59 > 0:47:00and not just on the ground floor.
0:47:02 > 0:47:06Upstairs the three bedrooms are going through the same process,
0:47:06 > 0:47:10each a single bedroom and each with their own en suite facilities,
0:47:10 > 0:47:12providing privacy for the new tenants.
0:47:13 > 0:47:17While at the top, the loft room has also been renovated.
0:47:17 > 0:47:19For such a major overhaul,
0:47:19 > 0:47:22the work here has fortunately been straightforward.
0:47:22 > 0:47:27Remember, there was a problem with the rotten skirting boards in the master bedroom.
0:47:27 > 0:47:33The lintel was original and was wooden. It had rotted away, so we replaced it with a steel.
0:47:33 > 0:47:34Simple as that.
0:47:34 > 0:47:37Amy reckons this will be a lovely house, providing top-notch
0:47:37 > 0:47:40accommodation for the tenants.
0:47:40 > 0:47:43But they've also got an eye on the future as to
0:47:43 > 0:47:46when the investor decides to sell the house on.
0:47:46 > 0:47:49The owner of the building wanted it to be in perfect shape
0:47:49 > 0:47:52just in case the original tenant didn't work out.
0:47:52 > 0:47:56So we've gone for two sides, capability of professional lets
0:47:56 > 0:47:59and the capability of the long-term tenant that was originally lined up.
0:48:01 > 0:48:03It's a good safety net to invest in a high level of finish
0:48:03 > 0:48:06for the house to attract future clients should
0:48:06 > 0:48:08the care facility decide not to sign up,
0:48:08 > 0:48:11but in this case the contracts have been signed
0:48:11 > 0:48:16and the house should soon be ready for its new tenants in a few weeks.
0:48:16 > 0:48:19Amy reckons this is a place to be proud of.
0:48:21 > 0:48:24I'm really pleased with the job. I couldn't have asked for more.
0:48:24 > 0:48:28I gave the builders a spec, they've come up with the spec exactly.
0:48:28 > 0:48:30We've got a really super building.
0:48:30 > 0:48:32We should expect not to have to do
0:48:32 > 0:48:34any maintenance here for a very long time.
0:48:34 > 0:48:38But providing the high spec finish and giving the house a longer
0:48:38 > 0:48:41shelf life means a bigger investment and Amy now anticipates
0:48:41 > 0:48:46the original £50,000 budget expanding up to £80,000.
0:48:46 > 0:48:50It is over, we've blown the budget, but we've absolutely
0:48:50 > 0:48:54excelled the condition of building as well. We've gone over
0:48:54 > 0:48:57the odds of what we expected to do in the beginning so we've ended up with
0:48:57 > 0:49:01a building which is a much better quality than we originally thought.
0:49:01 > 0:49:02The budget is over.
0:49:02 > 0:49:05The time is slightly over, but we're still on target for
0:49:05 > 0:49:07the tenant we've got ready for the property.
0:49:09 > 0:49:12With the renovation budget of £80,000, added to the
0:49:12 > 0:49:18purchase price of 73,000, the total spend here will be £153,000.
0:49:18 > 0:49:24So, what do two local estate agents make of this new HMO in Crewe?
0:49:24 > 0:49:26Quality first impressions of this property, some nice finish,
0:49:26 > 0:49:28definitely some more work to be done,
0:49:28 > 0:49:31but should produce a good finished product in the end.
0:49:31 > 0:49:34The owner's maximised the space in this big old Victorian house,
0:49:34 > 0:49:36which is great.
0:49:36 > 0:49:40And managed to get five bedrooms, all having en suites.
0:49:40 > 0:49:44The property represents a unique investment opportunity,
0:49:44 > 0:49:46and with the client lined up,
0:49:46 > 0:49:50the rental income is already established for Amy's investor.
0:49:50 > 0:49:54But what could the house achieve as a normal HMO
0:49:54 > 0:49:56on the rental market?
0:49:56 > 0:49:58I would suggest each room would fetch a rental income
0:49:58 > 0:50:02of £50-£60 each week.
0:50:02 > 0:50:08And a rental income of £1,000-£1,300 per calendar month.
0:50:08 > 0:50:11The rental market is very strong at the moment, so in my opinion,
0:50:11 > 0:50:14this property would rent for £1,500 per calendar month.
0:50:14 > 0:50:16£1,500 a month would be OK.
0:50:16 > 0:50:19It would still stack up to be a 10% yield.
0:50:19 > 0:50:24As it happens, our yield would be about 17 to 18% at 26,000 a year.
0:50:24 > 0:50:27So I am very pleased with being able to nail that deal.
0:50:27 > 0:50:30And should the investor decide to sell the property,
0:50:30 > 0:50:35would there be any profit from that £153,000 spend?
0:50:35 > 0:50:36On today's market,
0:50:36 > 0:50:42a property in this location would be in the region of £150,000.
0:50:42 > 0:50:46In my opinion, this property would sell for offers over £150,000.
0:50:46 > 0:50:47I'm really pleased with that.
0:50:47 > 0:50:51It'd obviously be worth more money with the tenants in
0:50:51 > 0:50:52and the income coming in.
0:50:52 > 0:50:55So the second the tenants arrive, we are then go into
0:50:55 > 0:50:59going concern territory rather than property territory.
0:50:59 > 0:51:03That not quite break even figure is clearly not a worry as this
0:51:03 > 0:51:07property is, as Amy says, about creating a home for residents
0:51:07 > 0:51:10and with that in mind, we decided to call back
0:51:10 > 0:51:13and see the finished result a couple of weeks later when the final
0:51:13 > 0:51:18touches had been made so we could see just how the rooms had panned out.
0:51:33 > 0:51:36With the kitchens and bathrooms all fitted
0:51:36 > 0:51:38and some furniture in place, it is
0:51:38 > 0:51:42clear to see this house is going to be a great first step home for the
0:51:42 > 0:51:46tenants as well as a very profitable investment for Amy's investor.
0:51:54 > 0:51:57We're returning to Derby now, and this two-bedroom mid-terrace which
0:51:57 > 0:52:02was bought at auction by retired civil engineer Pat for £53,000.
0:52:05 > 0:52:07The property itself has seen better days
0:52:07 > 0:52:10but that wasn't daunting for Pat.
0:52:10 > 0:52:15I was bored out of my face sitting at home cos I retired two, three years ago.
0:52:15 > 0:52:19Pat had had enough of sitting around and wanted a project to keep
0:52:19 > 0:52:21himself busy.
0:52:25 > 0:52:28Pat Senior, together with his elder son Pat,
0:52:28 > 0:52:31planned to renovate property with a budget of £12,000.
0:52:39 > 0:52:43We came back after just two months to see how they'd got on.
0:53:05 > 0:53:08In here, as you can see, there's a big transformation.
0:53:08 > 0:53:12There was a big brick wall there which we knocked down.
0:53:12 > 0:53:15There was a wall across here which was a brick cupboard which
0:53:15 > 0:53:16we knocked down.
0:53:16 > 0:53:20Got everything back to the bare brick and re-boarded and re-plastered,
0:53:20 > 0:53:24and fitted a new kitchen, which I think worked out pretty well.
0:53:24 > 0:53:28So, that outside loo we couldn't even get into has been
0:53:28 > 0:53:31incorporated to help make this a bigger, brighter kitchen.
0:53:37 > 0:53:40Upstairs too, they've given each room a complete overhaul.
0:53:56 > 0:53:59I done the whole thing, tiled it,
0:53:59 > 0:54:02new bath and new toilet and new sink. Tiled the floor.
0:54:02 > 0:54:06Decorated it. I done the whole thing. I'm very pleased with it.
0:54:08 > 0:54:10The central heating has been refitted throughout the house,
0:54:10 > 0:54:14freeing up space in the second bedroom where the old water
0:54:14 > 0:54:16tank and immersion heater were.
0:54:19 > 0:54:23We painted all the paintwork and obviously the new windows and everything.
0:54:23 > 0:54:26Done all the garden. Moved the shed.
0:54:26 > 0:54:29- The air raid shelter is still there, actually.- Yeah.
0:54:29 > 0:54:34I took the gate off the shed and put it on the air raid shelter,
0:54:34 > 0:54:38two solid posts, so at least they've got somewhere to put the lawnmower.
0:54:38 > 0:54:43And Pat has also erected a fence between his property and next door.
0:54:46 > 0:54:48So how did the budget pan out?
0:54:48 > 0:54:51The original budget, I said I wouldn't go over 12,000
0:54:51 > 0:54:53but it's got to about 14, I think.
0:54:53 > 0:54:56It went to 14,200, but it takes what it takes.
0:54:56 > 0:54:59And I'm still delighted with it anyway.
0:54:59 > 0:55:02- Still a bit of profit in there. - Yeah.
0:55:02 > 0:55:07Pat's total spend is £67,000 and although he said he'd be
0:55:07 > 0:55:11happy to break even, his son thinks there's a bit more profit in it.
0:55:13 > 0:55:16Would two local estate agents agree?
0:55:16 > 0:55:18We invited two along to ask their thoughts.
0:55:20 > 0:55:22The house looks really tidy, really smart now,
0:55:22 > 0:55:24it's like a brand-new house inside.
0:55:24 > 0:55:27It has everything done to it, new heating, new windows, new doors,
0:55:27 > 0:55:31new timber work, re-plastered. It's like a brand-new house.
0:55:31 > 0:55:33It's a really good job.
0:55:33 > 0:55:35It's done to a fairly good standard.
0:55:35 > 0:55:38It's not the best, but it will certainly do.
0:55:38 > 0:55:41Nice and clean so, yeah, looks good.
0:55:41 > 0:55:43'I really like the clean, smooth lines.
0:55:43 > 0:55:46'Because the property has been re-plastered,'
0:55:46 > 0:55:48everything looks really tidy.
0:55:48 > 0:55:51With the white kitchen, the white bathroom, it looks very clean.
0:55:51 > 0:55:54The sort of house somebody would want to move straight into.
0:55:54 > 0:55:56'Properties in this area usually get
0:55:56 > 0:55:58'sold fairly well if they're in poor condition.'
0:55:58 > 0:56:00I think people like to be able to add the value
0:56:00 > 0:56:04themselves rather than to have had someone already do that for them.
0:56:04 > 0:56:07There is a strong demand for first-time buyer
0:56:07 > 0:56:09type of property like this in such good condition.
0:56:09 > 0:56:11It would let or sell very quickly.
0:56:11 > 0:56:14Conflicting thoughts on this property's rental
0:56:14 > 0:56:16and selling capability.
0:56:16 > 0:56:18Let's see if they can agree on what it would be worth
0:56:18 > 0:56:20if Pat chose to sell it.
0:56:20 > 0:56:22I think if we were to put this property up for sale,
0:56:22 > 0:56:25I'd be looking at achieving around about £80,000.
0:56:28 > 0:56:31I think we would put the property on the market at £79,950.
0:56:31 > 0:56:34I've already been quoted 85 to 90.
0:56:34 > 0:56:37Well, that didn't impress Pat much.
0:56:37 > 0:56:40Let's see if they fare better with their rental appraisals.
0:56:40 > 0:56:42If we were to rent this property out, I think
0:56:42 > 0:56:46£450 per calendar month would be achievable.
0:56:46 > 0:56:49I think this property would rent at £450 per calendar month.
0:56:49 > 0:56:51It would never be rented anyway.
0:56:51 > 0:56:54- It's not bad that, is it? - No, it ain't.
0:56:54 > 0:56:57Pat's been clear all along that he bought his house with
0:56:57 > 0:57:00the intention of fixing it up and selling it.
0:57:00 > 0:57:02With that auction price of 53,000,
0:57:02 > 0:57:05plus the £14,200 renovation costs,
0:57:05 > 0:57:10even if they sold at the estate agent's valuation of £80,000,
0:57:10 > 0:57:14it's a profit of around £13,000 minus taxes and expenses.
0:57:14 > 0:57:18So, how has the whole experience been for the two Pats?
0:57:18 > 0:57:21It's the same as father and son working anywhere.
0:57:21 > 0:57:25You have your fallouts, but we still get on all right
0:57:25 > 0:57:28and we still walked out the house every night happy enough.
0:57:28 > 0:57:32- We come happy enough and then we started.- Yeah.
0:57:32 > 0:57:35Pat bought the property as a cure to his boredom,
0:57:35 > 0:57:38has it done its job in that respect?
0:57:38 > 0:57:40I've enjoyed it thoroughly.
0:57:40 > 0:57:46I'll just be bored from now till March when the caravan opens.
0:57:46 > 0:57:49But I'll keep my eye open at the auction.
0:57:52 > 0:57:55Well, Lucy and I hope you enjoyed watching Homes Under The Hammer
0:57:55 > 0:57:58and we'll have lots more stories for you next time.
0:57:58 > 0:58:01Yes, join us then for some more hot properties and maybe
0:58:01 > 0:58:04- some not so hot properties. Goodbye.- Goodbye.