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Hello, and welcome to the programme. | 0:00:02 | 0:00:03 | |
Now, Martin, today the weather has been a bit changeable. | 0:00:03 | 0:00:06 | |
-We've had sunshine and some cloud... -Yeah, ups and downs, | 0:00:06 | 0:00:08 | |
a bit like the property market. | 0:00:08 | 0:00:10 | |
But, you know what? It's all about buying at the right price | 0:00:10 | 0:00:13 | |
and at the right time, and that's what me and Lucy | 0:00:13 | 0:00:15 | |
are always telling you, here on Homes Under The Hammer. | 0:00:15 | 0:00:17 | |
MUSIC: Solid Rock by Dire Straits | 0:00:43 | 0:00:48 | |
Terraced properties. | 0:00:48 | 0:00:49 | |
Over the years, I have visited literally hundreds for the show - | 0:00:49 | 0:00:54 | |
two bedrooms, three bedrooms, good, solid family homes - | 0:00:54 | 0:00:59 | |
and the bedrock of the British property stock. | 0:00:59 | 0:01:04 | |
# Solid rock, rock, solid rock... # | 0:01:04 | 0:01:08 | |
Often built as housing for factory workers, they provided | 0:01:08 | 0:01:12 | |
high-volume housing, using a repeated joined-up style that | 0:01:12 | 0:01:16 | |
allowed for less build and design costs, | 0:01:16 | 0:01:18 | |
which meant affordable housing. | 0:01:18 | 0:01:20 | |
And Stoke-on-Trent, which employed thousands of workers | 0:01:20 | 0:01:23 | |
for its pottery manufacturing, was no exception. | 0:01:23 | 0:01:27 | |
MUSIC CONTINUES | 0:01:27 | 0:01:31 | |
So, terraced property, terraced property, | 0:01:32 | 0:01:35 | |
terraced property, gap, terraced property... | 0:01:35 | 0:01:42 | |
Not terraced property. | 0:01:42 | 0:01:43 | |
Er, that's kind of interesting | 0:01:43 | 0:01:46 | |
because you'd expect that to continue, but no. | 0:01:46 | 0:01:48 | |
This big, cream building is the property that was up for auction | 0:01:48 | 0:01:54 | |
and a terraced property of standard proportions it is not, | 0:01:54 | 0:01:59 | |
hinted at by the guide price, £115,000 plus. Let's take a look. | 0:01:59 | 0:02:04 | |
I wasn't expecting that. Wow! Look at the size of this room! | 0:02:09 | 0:02:15 | |
Even that baby grand piano is lost in this space! | 0:02:15 | 0:02:21 | |
It's enormous. | 0:02:21 | 0:02:22 | |
Nice floor, looks to be in reasonable condition. | 0:02:22 | 0:02:26 | |
HE LAUGHS | 0:02:26 | 0:02:27 | |
This is incredible! I thought that was big, look at this! | 0:02:27 | 0:02:31 | |
Is this a house, or is this some kind of a...? | 0:02:31 | 0:02:34 | |
I don't know, a banqueting suite or... I mean... | 0:02:34 | 0:02:39 | |
I'm sorry, I'm not being very descriptive of what I'm seeing. | 0:02:39 | 0:02:42 | |
You can just see, can't you? What an amazing space! | 0:02:42 | 0:02:44 | |
And it just goes on and on and on. | 0:02:44 | 0:02:46 | |
Through here, lots of little rooms going off, | 0:02:46 | 0:02:49 | |
there's a room down there. | 0:02:49 | 0:02:50 | |
This massive great... | 0:02:50 | 0:02:54 | |
leisure centre complex, conference centre! | 0:02:54 | 0:02:57 | |
The building does seem to be in pretty good condition. | 0:02:57 | 0:03:02 | |
And... Oh, wow. So it continues. | 0:03:02 | 0:03:06 | |
Look at this kitchen. | 0:03:06 | 0:03:07 | |
It's almost like I've been shrunk, | 0:03:07 | 0:03:10 | |
like I'm in Alice in Wonderland or something, | 0:03:10 | 0:03:13 | |
and I'm very small and the house is disproportionately big. | 0:03:13 | 0:03:16 | |
It's almost belies belief. | 0:03:16 | 0:03:20 | |
But it's true. Wow! | 0:03:21 | 0:03:24 | |
# Confusion | 0:03:24 | 0:03:26 | |
# You know it's driving me wild | 0:03:26 | 0:03:28 | |
# Confusion | 0:03:28 | 0:03:30 | |
# It comes as no big surprise | 0:03:30 | 0:03:32 | |
# You've lost your love and you just can't carry on | 0:03:33 | 0:03:35 | |
# Can't carry on | 0:03:35 | 0:03:37 | |
# You feel there's no-one there for you to lean on | 0:03:37 | 0:03:42 | |
# To lean on... # | 0:03:42 | 0:03:45 | |
Yes, it's all rather confusing. | 0:03:45 | 0:03:47 | |
It seems my much-loved terrace has been converted into | 0:03:47 | 0:03:51 | |
one property with, wait for it... seven bedrooms, five living rooms, | 0:03:51 | 0:03:56 | |
two kitchens, two bathrooms and just loads of general rooms. | 0:03:56 | 0:04:01 | |
But what to do with it all? | 0:04:01 | 0:04:03 | |
# Confusion | 0:04:05 | 0:04:08 | |
# Confusion... # | 0:04:10 | 0:04:11 | |
Time, I think, to get some advice on a local property expert. | 0:04:15 | 0:04:20 | |
First impressions of this property, it is exceptionally large | 0:04:20 | 0:04:24 | |
and it's really too large to be used as really one dwelling. | 0:04:24 | 0:04:27 | |
I think to maximise the return for this property, | 0:04:27 | 0:04:30 | |
the buyer would need to look into possibly conversion into flats | 0:04:30 | 0:04:35 | |
or possibly bedsits or individual letting rooms, which of course | 0:04:35 | 0:04:40 | |
would all be subject to the relevant planning permission. | 0:04:40 | 0:04:43 | |
I think the agent is spot on. | 0:04:43 | 0:04:45 | |
Two big as one house, but at that guide price of 115,000, | 0:04:45 | 0:04:49 | |
that flat idea could be very attractive. | 0:04:49 | 0:04:52 | |
So what kind of money could they make? | 0:04:52 | 0:04:54 | |
I would anticipate one-bedroom flats | 0:04:54 | 0:04:57 | |
in this area would be in the region of £50,000. | 0:04:57 | 0:05:01 | |
Possibly two beds, you could be closer to the £60,000 more. | 0:05:01 | 0:05:05 | |
OK, assuming you could get a maximum of six one-bed flats, | 0:05:05 | 0:05:09 | |
that would mean a total sale price of £300,000, | 0:05:09 | 0:05:13 | |
minus the auction price paid and the conversion costs, | 0:05:13 | 0:05:17 | |
there's still room for a healthy profit here. | 0:05:17 | 0:05:19 | |
But would rental in some form or other | 0:05:19 | 0:05:22 | |
be an option worth considering? | 0:05:22 | 0:05:24 | |
I think if you were going to rent it as individual rooms, | 0:05:24 | 0:05:27 | |
you'd possibly be looking around £250 per calendar month, per room. | 0:05:27 | 0:05:31 | |
I would anticipate rental income for one-bedroom flats | 0:05:31 | 0:05:35 | |
to be in the region of £350 per calendar month | 0:05:35 | 0:05:38 | |
and two bedrooms possibly between 400-425 per calendar month. | 0:05:38 | 0:05:43 | |
Well, it's an intriguing property for sure that could be | 0:05:47 | 0:05:51 | |
a potentially lucrative venture for someone, | 0:05:51 | 0:05:55 | |
but that someone's going to need a lot of money | 0:05:55 | 0:05:57 | |
and quite a bit of imagination to take this on. | 0:05:57 | 0:06:00 | |
Let's find out who bought it when it went under the hammer. | 0:06:00 | 0:06:03 | |
Lot 91 is a substantial corner terrace building, | 0:06:06 | 0:06:09 | |
large accommodation, lots of rooms. Shall we say 115 then? | 0:06:09 | 0:06:13 | |
Lots 91, 115. Back left, at £115,000. | 0:06:13 | 0:06:19 | |
120 going to say now. £120,000. | 0:06:19 | 0:06:22 | |
125? £125,000. | 0:06:22 | 0:06:26 | |
130? 130,000. 135? £135,000. | 0:06:26 | 0:06:32 | |
140? No? | 0:06:32 | 0:06:34 | |
Then 135,000, by the door. 136 anywhere else? | 0:06:34 | 0:06:38 | |
136, seated. | 0:06:38 | 0:06:40 | |
137, 138, 139, | 0:06:40 | 0:06:44 | |
140, 141, 142, | 0:06:44 | 0:06:48 | |
shaking his head 142, seated. | 0:06:48 | 0:06:51 | |
143 anywhere else? If not, I'm selling it at £142,000 | 0:06:51 | 0:06:56 | |
to the gentleman seated for the first time, | 0:06:56 | 0:06:59 | |
at £142,000 for the second time... | 0:06:59 | 0:07:03 | |
Third and final time at £142,000... | 0:07:03 | 0:07:07 | |
-HAMMER BANGS -You bought it, sir, well done. | 0:07:07 | 0:07:10 | |
And so the hammer fell at 142,000 | 0:07:10 | 0:07:13 | |
and the successful bid was made by Neil, | 0:07:13 | 0:07:15 | |
who bought it as a joint purchase with his business partner David. | 0:07:15 | 0:07:19 | |
Eagle-eyed viewers will have spotted that I've met them before, | 0:07:22 | 0:07:25 | |
but on a much smaller development project. | 0:07:25 | 0:07:29 | |
# I'll see you again | 0:07:29 | 0:07:32 | |
# Oh-whoa, oh-whoa-oh | 0:07:32 | 0:07:34 | |
# This is not where it ends... # | 0:07:34 | 0:07:36 | |
Neil, David, good to see you both...again! | 0:07:36 | 0:07:39 | |
-Welcome to the palace ballroom! -Yeah, feels that way, doesn't it? | 0:07:41 | 0:07:44 | |
Yes! Why did you want to buy it? | 0:07:44 | 0:07:46 | |
Simply the sheer size of the property | 0:07:46 | 0:07:48 | |
made it an attractive option. | 0:07:48 | 0:07:50 | |
OK, so what are you going to do with it, then? | 0:07:50 | 0:07:52 | |
-Well, the intention is to put it into about ten flats. -Ten flats? | 0:07:52 | 0:07:56 | |
See if we can get 8-10 flats, yeah. | 0:07:56 | 0:07:58 | |
-What, individual, self-contained flats? -Yes. | 0:07:58 | 0:08:00 | |
Upstairs is virtually divided into flats, | 0:08:00 | 0:08:03 | |
it's just sorting out the downstairs. | 0:08:03 | 0:08:05 | |
If David and Neil's plan to convert this building into flats goes ahead, | 0:08:05 | 0:08:09 | |
they would either sell the entire redevelopment to an investor or | 0:08:09 | 0:08:13 | |
sell some of the flats individually and keep some to rent out. | 0:08:13 | 0:08:18 | |
But, whatever route they choose, | 0:08:19 | 0:08:21 | |
it's all dependent on planning permission being granted. | 0:08:21 | 0:08:25 | |
We spoke to the planning department before we bought the building, | 0:08:25 | 0:08:28 | |
they gave us an indication of what they would want. | 0:08:28 | 0:08:31 | |
In theory, it works, so we've obviously got to put the formal | 0:08:32 | 0:08:36 | |
application in and just check that there's no hidden problems. | 0:08:36 | 0:08:39 | |
-But in theory it works? -Yeah, yeah. | 0:08:39 | 0:08:42 | |
What kind of cost do you think there would be involved | 0:08:42 | 0:08:44 | |
in creating ten flats? | 0:08:44 | 0:08:46 | |
I think we're looking at roughly around 200,000. | 0:08:46 | 0:08:50 | |
£200,000 spent along with their £142,000 purchase price | 0:08:50 | 0:08:55 | |
will commit them to a spend of £342,000. | 0:08:55 | 0:09:00 | |
But with the local property expert valuing one-bed flats | 0:09:00 | 0:09:03 | |
around £50,000, ten of those could bring in a cool | 0:09:03 | 0:09:07 | |
half a million quid and that would see a rather nice profit. | 0:09:07 | 0:09:11 | |
And David is hoping planning permission not withstanding, | 0:09:11 | 0:09:14 | |
his team of builders could turn this around in just four months. | 0:09:14 | 0:09:19 | |
I mean, congratulations and really excited to see how it all turns out. | 0:09:19 | 0:09:24 | |
-Thank you very much. -Good to see you again. -Cheers. | 0:09:24 | 0:09:26 | |
Neil and Dave seem to have found themselves a real gold mine here | 0:09:27 | 0:09:32 | |
and if they get that planning permission for ten flats, | 0:09:32 | 0:09:35 | |
lots of money to be made. | 0:09:35 | 0:09:37 | |
Will they? Or won't they? | 0:09:38 | 0:09:40 | |
You can find out, later in the show. | 0:09:40 | 0:09:43 | |
Never mind potential gold mines in Stoke, I've gone to a location | 0:09:46 | 0:09:51 | |
where I'm hoping I might find a real gem. | 0:09:51 | 0:09:54 | |
I'm in Whitstable, on the beautiful Kent coast. | 0:09:54 | 0:09:57 | |
It's a much sought-after area with good transport links | 0:09:57 | 0:10:00 | |
to the capital, making properties very much in demand. | 0:10:00 | 0:10:04 | |
Also in demand is Whitstable's most famous seafood, | 0:10:04 | 0:10:08 | |
which it's been exporting since Roman times. | 0:10:08 | 0:10:12 | |
# You're not the only oyster in the sea | 0:10:12 | 0:10:15 | |
# Not the only tea leaf in the tea... # | 0:10:16 | 0:10:20 | |
Five minutes is all it takes to walk from the beach to the property. | 0:10:21 | 0:10:26 | |
So you can hide from the tourists, | 0:10:26 | 0:10:28 | |
but a blast of the sea air, well, it's literally a stone's throw away, | 0:10:28 | 0:10:32 | |
which is perfect. And the outlook is pretty good, too. | 0:10:32 | 0:10:35 | |
You've got this extremely pleasant green, right here, | 0:10:35 | 0:10:39 | |
and while it might not be sea views from the windows, | 0:10:39 | 0:10:41 | |
your view is fantastic. | 0:10:41 | 0:10:42 | |
Now, the house itself is this. | 0:10:42 | 0:10:44 | |
It's a two-bedroom terrace. It had a guide price of 110-115,000. | 0:10:44 | 0:10:50 | |
I am going to check it out. | 0:10:50 | 0:10:51 | |
When you walk in, the first thing that you realise | 0:10:54 | 0:10:57 | |
is it's incredibly small. It's got a cottage-like feeling to it. | 0:10:57 | 0:11:01 | |
But what I love is the fact that there is a | 0:11:01 | 0:11:03 | |
certain amount of charm and character, | 0:11:03 | 0:11:05 | |
a really nice sitting room through there, you've got picture rails, | 0:11:05 | 0:11:09 | |
really wide floorboards. I mean, look at these lovely doors | 0:11:09 | 0:11:13 | |
with the handles. | 0:11:13 | 0:11:14 | |
Another reception room through here... Oh, VERY small kitchen. | 0:11:14 | 0:11:19 | |
Look how disappointing this is. | 0:11:19 | 0:11:21 | |
So, it's dinky, it's delightful... | 0:11:21 | 0:11:24 | |
I've just got a feeling that it's out here that it goes horribly wrong! | 0:11:24 | 0:11:28 | |
Yes, gets interesting, doesn't it? | 0:11:31 | 0:11:34 | |
Bit of a lean-to situation, and, as I thought, that's the bathroom. | 0:11:34 | 0:11:39 | |
I mean, really, are you going to have a bath in there? | 0:11:39 | 0:11:42 | |
I don't think so. | 0:11:42 | 0:11:44 | |
And typically, as you would expect in a property like this, | 0:11:44 | 0:11:49 | |
the outside loo. Just close that door. | 0:11:49 | 0:11:52 | |
It's not really working. | 0:11:52 | 0:11:53 | |
But, once you're outside, | 0:11:53 | 0:11:55 | |
you can see it's such a pretty little garden. | 0:11:55 | 0:11:58 | |
I mean, this really is fantastic. | 0:11:58 | 0:12:00 | |
You've got loads of space there, so I'm thinking, | 0:12:00 | 0:12:03 | |
judging by what they've done next door, because, there you go, | 0:12:03 | 0:12:06 | |
the neighbour's wall comes right the way out to here, | 0:12:06 | 0:12:10 | |
you could have a nice, big extension. | 0:12:10 | 0:12:13 | |
You could go right the way up, get an extra bedroom, | 0:12:13 | 0:12:15 | |
a bathroom upstairs. That really, really would | 0:12:15 | 0:12:18 | |
make this little property so much more worthwhile. | 0:12:18 | 0:12:22 | |
But what you've got to really think about is do the figures stack up? | 0:12:22 | 0:12:26 | |
An extension like this could create approximately | 0:12:27 | 0:12:30 | |
half as much floor space as the original house. | 0:12:30 | 0:12:33 | |
Apart from the cash, you wouldn't be sacrificing much. | 0:12:33 | 0:12:36 | |
There would still be loads of garden, | 0:12:36 | 0:12:38 | |
you wouldn't have to cut quite as much grass | 0:12:38 | 0:12:41 | |
and a first floor bathroom would really add value. | 0:12:41 | 0:12:44 | |
So let's see what the top floor has in store as it stands. | 0:12:44 | 0:12:48 | |
Well, in the catalogue, it says there are two bedrooms up here... | 0:12:51 | 0:12:54 | |
Yes, one...two? More like a half-size! | 0:12:54 | 0:12:59 | |
I mean, this is incredibly small. | 0:12:59 | 0:13:02 | |
Can you even fit a single bed along? | 0:13:02 | 0:13:05 | |
Although you do have a lovely little view of the green through that window, | 0:13:05 | 0:13:09 | |
but that's if you can clamber over your bed | 0:13:09 | 0:13:11 | |
and move the bits and pieces in-between. | 0:13:11 | 0:13:13 | |
I'm being positive. | 0:13:13 | 0:13:15 | |
Look, I'm not saying this couldn't be a nice space, | 0:13:16 | 0:13:19 | |
or a kind of nice not-much-space. | 0:13:19 | 0:13:21 | |
Bedroom number two, next door, is a much better size, but not so big | 0:13:21 | 0:13:26 | |
that you could steal a bit of space from here to give to next door. | 0:13:26 | 0:13:30 | |
You could look to open up the eaves in here | 0:13:30 | 0:13:32 | |
and maybe think of installing a dormer at the back | 0:13:32 | 0:13:34 | |
if you didn't want to do the full extension, that is. | 0:13:34 | 0:13:38 | |
This house is challenging. | 0:13:38 | 0:13:40 | |
The kitchen's tiny, but not as small as that bedroom. | 0:13:40 | 0:13:43 | |
And the bathroom and toilet are basically out in the lean-to conservatory. | 0:13:43 | 0:13:48 | |
But it's also cute and quirky, | 0:13:48 | 0:13:50 | |
but will cuteness cut it at a guide price of 110-115,000? | 0:13:50 | 0:13:56 | |
We asked along the local estate agent for her opinion. | 0:13:56 | 0:13:59 | |
First impressions of the property are it's a lovely place | 0:14:03 | 0:14:05 | |
in a brilliant location. | 0:14:05 | 0:14:07 | |
Definitely a project. | 0:14:07 | 0:14:09 | |
But keeping the original features would definitely kind of give it | 0:14:09 | 0:14:13 | |
the appeal, should the buyer want to sell it on. | 0:14:13 | 0:14:15 | |
I don't think it'd be worth extending the property | 0:14:15 | 0:14:18 | |
because I don't think you'd gain that much money on top of it, | 0:14:18 | 0:14:21 | |
but again, maybe putting in roof lights to make it seem more | 0:14:21 | 0:14:25 | |
light and airy, just giving the appearance of more space. | 0:14:25 | 0:14:28 | |
The agent doesn't think an extension would be worthwhile, | 0:14:28 | 0:14:32 | |
so what could this cottage be worth without one? | 0:14:32 | 0:14:35 | |
If the property was done up to a very, very good standard, | 0:14:35 | 0:14:38 | |
you'd be looking at possibly around about the £225,000 mark. | 0:14:38 | 0:14:42 | |
A property like this could achieve | 0:14:42 | 0:14:45 | |
£750-£800 per calendar month for rent. | 0:14:45 | 0:14:49 | |
I think Whitstable is wonderful, full of charm and character, | 0:14:49 | 0:14:53 | |
with a lovely coastline. | 0:14:53 | 0:14:54 | |
It really is a perfect place to while away a weekend | 0:14:54 | 0:14:57 | |
and to own property here would be something special. | 0:14:57 | 0:15:00 | |
Let's see who thought the same about this house at the auction. | 0:15:00 | 0:15:04 | |
Lot 150. | 0:15:04 | 0:15:06 | |
We've got a guide of 110-115 and what may I say? | 0:15:06 | 0:15:11 | |
Start me at 110? | 0:15:11 | 0:15:12 | |
110. And 112? 112. | 0:15:13 | 0:15:16 | |
115? 115. 117? | 0:15:16 | 0:15:19 | |
117 in a fresh place. | 0:15:19 | 0:15:20 | |
Cracking start, with bids coming in from all over the room. | 0:15:20 | 0:15:24 | |
Hardly surprising, as the average price for a two-bedroom property | 0:15:24 | 0:15:28 | |
in Whitstable is £190,000. | 0:15:28 | 0:15:31 | |
We rejoin the bidding at £145,000. | 0:15:31 | 0:15:34 | |
145. And 147? | 0:15:34 | 0:15:37 | |
146, if it helps. | 0:15:37 | 0:15:39 | |
That's a definite no, isn't it? | 0:15:40 | 0:15:42 | |
£145,000, lady's bid on my right-hand side. | 0:15:42 | 0:15:46 | |
At £145,000 I have. | 0:15:46 | 0:15:49 | |
146, can I tempt you again? | 0:15:49 | 0:15:52 | |
146. And 147? | 0:15:52 | 0:15:55 | |
That's a definite no, as well. | 0:15:55 | 0:15:57 | |
At 146,000, then, for the first time, | 0:15:57 | 0:16:00 | |
146,000 for the second time, | 0:16:00 | 0:16:04 | |
146,000, third and final time, £146,000, all done? | 0:16:04 | 0:16:10 | |
Sold at 146,000. | 0:16:10 | 0:16:12 | |
Well done and your bidder's number? | 0:16:12 | 0:16:14 | |
See, that extra 1,000 made all the difference. | 0:16:14 | 0:16:17 | |
Indeed, it did make all the difference. | 0:16:17 | 0:16:19 | |
That extra grand has made Zira a very happy woman. | 0:16:19 | 0:16:23 | |
She's a stylist and vintage shop owner, originally from Brazil, | 0:16:23 | 0:16:27 | |
who's lived in the UK for 19 years. | 0:16:27 | 0:16:30 | |
She and dog Indie already know these doggy walks well as they live | 0:16:30 | 0:16:34 | |
very nearby in a little cottage. | 0:16:34 | 0:16:36 | |
I caught up with her at her newly acquired vintage home-to-be. | 0:16:36 | 0:16:40 | |
Zira, it's lovely meeting you today. | 0:16:40 | 0:16:42 | |
Are you happy with your purchase and why did you want to move here? | 0:16:42 | 0:16:45 | |
I needed to downsize a bit | 0:16:45 | 0:16:47 | |
and release some cash from my property and so this being perfect. | 0:16:47 | 0:16:52 | |
-So, you're downsizing from that house to buy this house? -Exactly. | 0:16:52 | 0:16:55 | |
So, how did that work out financially? | 0:16:55 | 0:16:57 | |
Because you've got to have the money ready | 0:16:57 | 0:16:59 | |
when you buy at auction and I know you still currently own that house. | 0:16:59 | 0:17:02 | |
I know. Well, my house is... I actually have a very, | 0:17:02 | 0:17:05 | |
very special best friend who lent me the money... | 0:17:05 | 0:17:08 | |
SHE MOUTHS | 0:17:08 | 0:17:09 | |
..to go into the auction and buy this house. | 0:17:09 | 0:17:12 | |
-So you bought this house cash? -I bought this... Yes, with her cash. | 0:17:12 | 0:17:14 | |
-With her cash? -Yes. | 0:17:14 | 0:17:16 | |
There we go, a big box of chocolates and a bunch of flowers. | 0:17:16 | 0:17:19 | |
Absolutely, absolutely. I owe her big time. | 0:17:19 | 0:17:22 | |
# Thank you for being a friend. # | 0:17:22 | 0:17:25 | |
Zira has a good friend, that's for sure. | 0:17:26 | 0:17:28 | |
This has helped over the period | 0:17:28 | 0:17:30 | |
when her own Victorian house is in the process of being sold | 0:17:30 | 0:17:33 | |
and this house is going to be ideal for her and her son Max. | 0:17:33 | 0:17:37 | |
Her aim was to downsize and this does appear to fit the bill. | 0:17:37 | 0:17:41 | |
Well, first of all, the size I was looking for, two bedrooms, | 0:17:42 | 0:17:45 | |
with a garden and, of course, with this price, | 0:17:45 | 0:17:48 | |
all I could get was a flat on a high street. | 0:17:48 | 0:17:51 | |
-And having the green right in front of the house. -You're right. | 0:17:51 | 0:17:55 | |
I mean, for the price of a flat, | 0:17:55 | 0:17:57 | |
you've got yourself a whole house here. | 0:17:57 | 0:17:59 | |
The only thing is it's a little bit small. | 0:17:59 | 0:18:02 | |
Where's your son going to sleep? | 0:18:02 | 0:18:04 | |
Well... | 0:18:04 | 0:18:06 | |
The small second bedroom, I think I can fit a bed in there. | 0:18:06 | 0:18:12 | |
How does he feel about it? | 0:18:12 | 0:18:14 | |
He's OK because I promised the front room, | 0:18:14 | 0:18:17 | |
it's going to be a den, TV/games room. | 0:18:17 | 0:18:20 | |
What are the immediate renovations you're going to be doing? | 0:18:20 | 0:18:23 | |
The bathroom upstairs. | 0:18:23 | 0:18:24 | |
So, there's 1.5 metres of the eaves, | 0:18:24 | 0:18:27 | |
I think I can fit a bathroom there. | 0:18:27 | 0:18:29 | |
Zira has had plans drawn up for this conversion | 0:18:31 | 0:18:33 | |
and hopes she can install the bathroom, | 0:18:33 | 0:18:36 | |
and do all the other refurbishment work on a budget of £25,000. | 0:18:36 | 0:18:41 | |
# What do you do in the bath? # | 0:18:41 | 0:18:43 | |
So, when do you hope to move in? | 0:18:45 | 0:18:48 | |
-In about two weeks. -Really?! -Yes. -Wow. | 0:18:48 | 0:18:51 | |
I don't want to spend the money on a rental | 0:18:51 | 0:18:53 | |
when I need the money to put into the house. | 0:18:53 | 0:18:56 | |
-Are you excited to renovate...? -I can't wait. I can't wait. I like... | 0:18:56 | 0:19:01 | |
Part of me enjoy being in a building site. | 0:19:01 | 0:19:03 | |
-I can't wait to see that bathroom upstairs. -Yes, so do I! | 0:19:03 | 0:19:06 | |
-Happy cosy living. -Thank you very much. Thank you. | 0:19:06 | 0:19:10 | |
Oh, Zira has a really good buy here in a fabulous location, | 0:19:10 | 0:19:15 | |
but she's going to have to put all that creativity to work | 0:19:15 | 0:19:19 | |
to make this cosy home practical. | 0:19:19 | 0:19:22 | |
I'm sure she'll do it, though. | 0:19:22 | 0:19:23 | |
You can find out if I'm right later on in the show. | 0:19:23 | 0:19:26 | |
Coming up, in South Wales, this is a hard house to work out. | 0:19:28 | 0:19:33 | |
HE EXHALES LOUDLY | 0:19:35 | 0:19:36 | |
We return to Whitstable, on the Kent coast, | 0:19:38 | 0:19:40 | |
to find out what's upsetting Zira's plans. | 0:19:40 | 0:19:43 | |
Oh. | 0:19:43 | 0:19:45 | |
No, don't like it. | 0:19:45 | 0:19:47 | |
But first it's back to Stoke on Trent. | 0:19:51 | 0:19:54 | |
And now, six months later, we're back to see how they got on. | 0:19:54 | 0:19:58 | |
Well, externally, the property seems to have gained a few more doors - | 0:19:59 | 0:20:04 | |
that's an encouraging sign. But, more importantly, what's inside? | 0:20:04 | 0:20:08 | |
Ah! This rather smart one-bed flat with open-plan kitchen-diner... | 0:20:10 | 0:20:14 | |
..shower room behind... | 0:20:16 | 0:20:17 | |
..and a single bedroom at the rear. | 0:20:18 | 0:20:21 | |
But what about the rest of the building? | 0:20:24 | 0:20:26 | |
Ah. Not quite as finished. | 0:20:29 | 0:20:32 | |
What will all these rooms be once completed? | 0:20:35 | 0:20:38 | |
We've looked at producing eight flats now. | 0:20:40 | 0:20:43 | |
Originally, we'd hoped to get nine or ten. | 0:20:43 | 0:20:45 | |
Reduced slightly but it means each one's slightly larger than they had | 0:20:45 | 0:20:49 | |
originally planned and we think that's going to make them more attractive. | 0:20:49 | 0:20:52 | |
And the eight one-bed flats will be made up of four flats | 0:20:52 | 0:20:56 | |
on the ground floor and four flats on the first floor. | 0:20:56 | 0:20:59 | |
So, presently, what stage are the flats at? | 0:21:01 | 0:21:04 | |
Basically, there's one flat which is completely finished. | 0:21:05 | 0:21:07 | |
We've then got two flats which are ready for decoration, | 0:21:07 | 0:21:11 | |
we've got one more flat which is ready for second fix joinery | 0:21:11 | 0:21:15 | |
and then we've got three more flats which are ready | 0:21:15 | 0:21:18 | |
for partition work going up, stud work going up - | 0:21:18 | 0:21:21 | |
that's going to be completed in the next three or four weeks. | 0:21:21 | 0:21:24 | |
David has had two teams working on the building - | 0:21:25 | 0:21:28 | |
one on the first floor and one on the ground floor. | 0:21:28 | 0:21:31 | |
And, then, a team was going round doing all the second fix work. | 0:21:31 | 0:21:35 | |
So, have there been any major problems? | 0:21:35 | 0:21:38 | |
The biggest job was we've had a new gable wall built at the far | 0:21:38 | 0:21:41 | |
end of the building cos the old one was falling down. | 0:21:41 | 0:21:44 | |
A new staircase had to go in and floors had to be aligned to that. | 0:21:44 | 0:21:47 | |
There's just been a lot of the same sort of work, that's all. | 0:21:47 | 0:21:50 | |
Well, it seems, gable end notwithstanding, | 0:21:50 | 0:21:53 | |
this project is working out well for the duo. | 0:21:53 | 0:21:55 | |
But have they now decided what to do with the flats once they're completed? | 0:21:55 | 0:22:00 | |
We're now at the point where we're prepared to sell all eight flats. | 0:22:00 | 0:22:04 | |
Very similar to where we were, | 0:22:04 | 0:22:05 | |
we're quite happy to hang on to two or three of them, as well, | 0:22:05 | 0:22:08 | |
cos they're going to provide a good steady rental income. | 0:22:08 | 0:22:11 | |
At the moment, we have three flats under offer, | 0:22:11 | 0:22:15 | |
so five are still available to either be retained by us or to be sold on. | 0:22:15 | 0:22:20 | |
With three under offer, it certainly indicates that the decision | 0:22:20 | 0:22:23 | |
to convert the building into flats was the right one. | 0:22:23 | 0:22:26 | |
But they are creating two less flats than they hoped for, | 0:22:26 | 0:22:29 | |
so will the figures still add up? | 0:22:29 | 0:22:31 | |
The budget, originally, was 200,000. | 0:22:32 | 0:22:36 | |
We are currently on around about 180,000, | 0:22:36 | 0:22:39 | |
but that includes fees such as architects' fees. | 0:22:39 | 0:22:42 | |
We had to spend slightly more on the gable wall, | 0:22:42 | 0:22:45 | |
although we had allowed for that within the original budget. | 0:22:45 | 0:22:48 | |
So, currently, it looks like we're going to complete | 0:22:48 | 0:22:52 | |
the project on about £180,000. | 0:22:52 | 0:22:54 | |
Provided they stick to their £180,000 budget, then, | 0:22:55 | 0:23:00 | |
on top of their £142,000 purchase price, | 0:23:00 | 0:23:03 | |
their grand total to create eight flats will be £322,000. | 0:23:03 | 0:23:08 | |
What do two local property experts make of the development so far? | 0:23:09 | 0:23:14 | |
I would anticipate a rental value in the region of £400 | 0:23:15 | 0:23:18 | |
per calendar month per flat. | 0:23:18 | 0:23:20 | |
As an average rental for the apartments, I'd expect them | 0:23:20 | 0:23:23 | |
to achieve in the region of £375 per calendar month. | 0:23:23 | 0:23:26 | |
Even the lower £375 per calendar month would potentially | 0:23:27 | 0:23:31 | |
bring in an annual rental yield of 11% for the whole building. | 0:23:31 | 0:23:35 | |
But what about resale values for the flats? | 0:23:35 | 0:23:38 | |
Will Neil and David see much return from what will be | 0:23:38 | 0:23:41 | |
a £322,000 investment? | 0:23:41 | 0:23:43 | |
I would anticipate a resale value for the flats | 0:23:46 | 0:23:49 | |
individually at around £50,000. | 0:23:49 | 0:23:52 | |
As an average guide price, for each independent flat, | 0:23:52 | 0:23:55 | |
I would suggest that they would sell | 0:23:55 | 0:23:57 | |
at around £50,000 as an average price. | 0:23:57 | 0:23:59 | |
It's in line with what we'd expected. | 0:23:59 | 0:24:01 | |
An average figure is fine. | 0:24:01 | 0:24:03 | |
In reality, we'd expect the larger top-floor flats will probably | 0:24:03 | 0:24:08 | |
sell for a little bit more | 0:24:08 | 0:24:09 | |
and the two smaller flats will probably sell for a little bit less. | 0:24:09 | 0:24:12 | |
An average price of 50,000 would see a total return | 0:24:14 | 0:24:17 | |
of £400,000 for the eight flats, | 0:24:17 | 0:24:20 | |
which would, potentially, see a pre-tax profit of £78,000. | 0:24:20 | 0:24:24 | |
That's not bad. | 0:24:24 | 0:24:26 | |
So, with this looking like a successful venture, | 0:24:26 | 0:24:29 | |
are they planning more development projects together? | 0:24:29 | 0:24:32 | |
Yes, gradually, over the last two or three years, we've done | 0:24:34 | 0:24:38 | |
slightly larger projects each time, so we're comfortable with this. | 0:24:38 | 0:24:41 | |
It seems to have worked well, so, yes, we are looking | 0:24:41 | 0:24:44 | |
for other similar-sized projects now. | 0:24:44 | 0:24:46 | |
If you've never been here before then, the first time you visit | 0:24:50 | 0:24:55 | |
the valleys of south Wales, you might be in for a bit of a surprise. | 0:24:55 | 0:24:59 | |
They really are spectacular. | 0:25:00 | 0:25:02 | |
This area has been moulded over millions of years by volcanoes, | 0:25:04 | 0:25:09 | |
rivers, glaciers and even tropical climates, | 0:25:09 | 0:25:13 | |
all of which have created the natural beauty | 0:25:13 | 0:25:15 | |
of these deep channels running through the mountains. | 0:25:15 | 0:25:18 | |
The coal that was also created led to the build-up of villages, | 0:25:18 | 0:25:22 | |
which have nestled themselves in the stunning backdrop. | 0:25:22 | 0:25:25 | |
# Into the valley... # | 0:25:26 | 0:25:30 | |
The town of Penrhiwceiber is no exception, | 0:25:30 | 0:25:33 | |
but I can't spend all day admiring the view. | 0:25:33 | 0:25:35 | |
I had better get on with the property I'm here to see. | 0:25:35 | 0:25:38 | |
So, what was up for grabs at the auction? | 0:25:39 | 0:25:42 | |
Well, a two-bedroomed mid-terrace at a guide price of £23,000 plus. | 0:25:42 | 0:25:49 | |
It's one of these very attractive properties. What's it like inside? | 0:25:49 | 0:25:52 | |
Only one way to find out. | 0:25:52 | 0:25:54 | |
So, what have we got? Whew! | 0:25:56 | 0:25:58 | |
Woodchip wallpaper for a start. | 0:25:59 | 0:26:01 | |
Can't resist it. | 0:26:03 | 0:26:04 | |
Bit of stripping while I'm here, so to speak. | 0:26:07 | 0:26:09 | |
Entrance hall there, though, | 0:26:09 | 0:26:10 | |
through into what is your fairly standard layout, isn't it? | 0:26:10 | 0:26:14 | |
A front sitting room, nice big window, so lots of light. | 0:26:14 | 0:26:19 | |
Stairs down and stairs up. | 0:26:19 | 0:26:22 | |
Got to be explored. | 0:26:23 | 0:26:25 | |
First stop on the tour, | 0:26:32 | 0:26:34 | |
the bathroom on the same floor as the living room. | 0:26:34 | 0:26:37 | |
Now, ordinarily, I would be saying, "Ground-floor bathroom?! | 0:26:37 | 0:26:40 | |
"Let's try and move it upstairs." | 0:26:40 | 0:26:42 | |
But, with the house split over three floors, it's best left where it is. | 0:26:42 | 0:26:46 | |
But, on the bright side, | 0:26:46 | 0:26:48 | |
you're only ever one flight of stairs from the loo. | 0:26:48 | 0:26:50 | |
Well, typical of many properties around here, the kitchen | 0:26:55 | 0:26:59 | |
is actually situated down here on the lower floor. | 0:26:59 | 0:27:03 | |
It's not a bad-sized space. | 0:27:03 | 0:27:05 | |
I mean, it's a kitchen sort of dining room, so that's good. | 0:27:05 | 0:27:08 | |
Couple of things which I see straight away, though, | 0:27:08 | 0:27:11 | |
which do cause a bit of concern. Number one, very old radiator | 0:27:11 | 0:27:15 | |
and my guess is, maybe, central heating system needs updating. | 0:27:15 | 0:27:18 | |
Number two, really bad case of damp. | 0:27:18 | 0:27:22 | |
Hm, that's the neighbouring property - intriguing. | 0:27:22 | 0:27:25 | |
Where's that coming from? Whatever, it needs to be sorted. | 0:27:25 | 0:27:28 | |
Other than that, and the woodchip wallpaper, | 0:27:29 | 0:27:32 | |
the property is in generally good condition. | 0:27:32 | 0:27:35 | |
It's the paperwork that may cause a bit of a headache. | 0:27:35 | 0:27:38 | |
The property had, until last year, a 99-year lease. | 0:27:40 | 0:27:45 | |
That has now expired. | 0:27:45 | 0:27:47 | |
Hm? Interesting scenario. What does that mean? | 0:27:47 | 0:27:50 | |
Well, it's good, on the one hand, that it will probably end up | 0:27:50 | 0:27:54 | |
reverting to being a freehold property. | 0:27:54 | 0:27:56 | |
It's bad, on the other, | 0:27:56 | 0:27:58 | |
because you're going to have to put a lot of time and | 0:27:58 | 0:28:00 | |
effort, or at least your solicitor is, into sorting out those issues, | 0:28:00 | 0:28:05 | |
which, of course, means money. | 0:28:05 | 0:28:08 | |
But, given that you'll always read the legal pack, | 0:28:08 | 0:28:11 | |
at least you knew about it beforehand. | 0:28:11 | 0:28:13 | |
So, at the back of the property, well, | 0:28:18 | 0:28:21 | |
before I get to the garden, how about this? | 0:28:21 | 0:28:24 | |
This exterior, it may look like just normal pebble dash, | 0:28:24 | 0:28:26 | |
but if you...hit it it sounds a bit hollow. | 0:28:26 | 0:28:30 | |
I reckon what this is is wall insulation. | 0:28:30 | 0:28:33 | |
There's a bit of a government directive to provide this | 0:28:33 | 0:28:36 | |
kind of thing cos it makes a house a lot more energy efficient. | 0:28:36 | 0:28:40 | |
It also creates quite a watertight exterior. So, that's good, | 0:28:40 | 0:28:44 | |
it's been done, another thing to tick off the renovation list. | 0:28:44 | 0:28:48 | |
But back to the garden and not a bad size. | 0:28:48 | 0:28:51 | |
But it feels a lot bigger cos look at that view! Fantastic. | 0:28:51 | 0:28:55 | |
And, apart from the great views, this is an ex-council property | 0:28:58 | 0:29:02 | |
that not only has wall insulation but also these water heating panels, | 0:29:02 | 0:29:07 | |
which are included in the price of the property, | 0:29:07 | 0:29:09 | |
making them a very desirable addition to the whole package. | 0:29:09 | 0:29:12 | |
Now, I've been putting this off, but I still need to see the bedrooms. | 0:29:15 | 0:29:20 | |
# But I would walk 500 miles | 0:29:23 | 0:29:26 | |
# And I would walk 500 more | 0:29:26 | 0:29:30 | |
# Just to be the man who walked 1,000 miles | 0:29:30 | 0:29:35 | |
# To fall down at your door | 0:29:35 | 0:29:37 | |
-# Dada-da-da-da -Dada-da-da-da | 0:29:37 | 0:29:39 | |
-# Dada-da-da-da -Dada-da-da-da... # | 0:29:39 | 0:29:42 | |
HE EXHALES LOUDLY | 0:29:43 | 0:29:44 | |
Well, I don't know about 500 miles, feels like 500 steps. | 0:29:45 | 0:29:50 | |
But when you get up here, what do you find? | 0:29:50 | 0:29:52 | |
Well, actually, two decent-sized bedrooms. | 0:29:52 | 0:29:55 | |
That one there, fantastic views over the hills. | 0:29:55 | 0:29:57 | |
The front one here, well, ha, look at it. | 0:29:57 | 0:30:02 | |
Much bigger than you expect | 0:30:02 | 0:30:04 | |
from the size of the property on the outside. | 0:30:04 | 0:30:06 | |
So... | 0:30:06 | 0:30:07 | |
it just tops off what is already | 0:30:07 | 0:30:09 | |
a pretty respectable little property. | 0:30:09 | 0:30:11 | |
While I get my breath back, | 0:30:14 | 0:30:16 | |
let's find out what potential | 0:30:16 | 0:30:18 | |
a local property expert sees in this three-storey, | 0:30:18 | 0:30:21 | |
two-bed terraced house. | 0:30:21 | 0:30:22 | |
The property is a split-level property, | 0:30:24 | 0:30:27 | |
so obviously two flights of stairs may limit the market slightly | 0:30:27 | 0:30:31 | |
with the younger families with young children | 0:30:31 | 0:30:33 | |
and also the problems with, perhaps, | 0:30:33 | 0:30:36 | |
anybody with mobility issues might limit that market a little bit. | 0:30:36 | 0:30:38 | |
But, generally, a good-sized property here, | 0:30:38 | 0:30:41 | |
so will open a few doors. | 0:30:41 | 0:30:43 | |
So what's the potential value once property is done up? | 0:30:44 | 0:30:47 | |
The potential resale value of this property | 0:30:49 | 0:30:52 | |
would be in the region of £50,000. | 0:30:52 | 0:30:54 | |
As a rental property, it could achieve £350 per calendar month. | 0:30:54 | 0:30:59 | |
So...a pretty nice little house | 0:31:01 | 0:31:03 | |
that just needs a bit of tender loving care and modernisation. | 0:31:03 | 0:31:07 | |
Who fancied it when it went under the hammer? | 0:31:07 | 0:31:10 | |
Lot number 14 is guided at 23,000, | 0:31:11 | 0:31:13 | |
start me, will you, at 20,000? | 0:31:13 | 0:31:15 | |
20 I've got, thank you. At 20. One - can I see? | 0:31:15 | 0:31:18 | |
21, 22, 23... | 0:31:18 | 0:31:20 | |
24, 25, 26, 27, | 0:31:20 | 0:31:23 | |
28, 29, 30. | 0:31:23 | 0:31:25 | |
31...31? | 0:31:25 | 0:31:27 | |
No. At 30,000, then, standing. | 0:31:27 | 0:31:30 | |
At 30, then, for the first time... | 0:31:30 | 0:31:32 | |
second time, | 0:31:32 | 0:31:33 | |
third and last time at 30... | 0:31:33 | 0:31:35 | |
31? 30 and a half, then, if you like. | 0:31:35 | 0:31:37 | |
30 and a half... 31? No. | 0:31:37 | 0:31:39 | |
That half was just enough to do it. | 0:31:39 | 0:31:41 | |
At 30 and a half, then. | 0:31:41 | 0:31:43 | |
Seated for the first time, | 0:31:43 | 0:31:44 | |
second time, | 0:31:44 | 0:31:46 | |
third and last time. 30,500. | 0:31:46 | 0:31:47 | |
Yours, madam. Your number, please? | 0:31:49 | 0:31:51 | |
That extra £500 was enough to seal the deal | 0:31:51 | 0:31:54 | |
at £30,500 for Cardiff couple Ray and Paul. | 0:31:54 | 0:32:00 | |
Having recently left the Army, | 0:32:00 | 0:32:01 | |
Paul has started up property maintenance business. | 0:32:01 | 0:32:05 | |
However, it wasn't just the price that had attracted them to the area. | 0:32:05 | 0:32:08 | |
# Zipping up my boots... | 0:32:08 | 0:32:11 | |
# Going back to my roots, yeah... # | 0:32:13 | 0:32:16 | |
Ray, Paul, good to meet you both. | 0:32:16 | 0:32:17 | |
-Hi. -Congratulations. | 0:32:17 | 0:32:20 | |
So what was it about this particular place that appealed? | 0:32:20 | 0:32:23 | |
It's on a commuter route to Cardiff, | 0:32:23 | 0:32:26 | |
it's an area that's being regenerated | 0:32:26 | 0:32:30 | |
and within our price budget. | 0:32:30 | 0:32:32 | |
Also Paul has family connections to the area - | 0:32:32 | 0:32:36 | |
that his family grew up here. | 0:32:36 | 0:32:37 | |
His grandfather was born just a few streets away. | 0:32:37 | 0:32:40 | |
Oh, wow. | 0:32:40 | 0:32:41 | |
So, yes, I suppose you've come back home, really. | 0:32:41 | 0:32:45 | |
Paul has come back to his roots for the couple's first project. | 0:32:48 | 0:32:52 | |
And apart from being familiar territory, | 0:32:52 | 0:32:54 | |
this is an ideal starter project. | 0:32:54 | 0:32:56 | |
So tell me what you're going to do to sort this place out. | 0:32:57 | 0:33:01 | |
New kitchen and a new bathroom put in. | 0:33:01 | 0:33:06 | |
The rest of it is just some redecoration, | 0:33:06 | 0:33:08 | |
new woodwork and just freshen it up, really. | 0:33:08 | 0:33:11 | |
-Central heating? Improvements? -Yep. | 0:33:11 | 0:33:13 | |
We've still got the back boiler here, | 0:33:13 | 0:33:15 | |
so we intend to put in a new combi boiler in. | 0:33:15 | 0:33:17 | |
-Right. -So that should take the majority of our budget. | 0:33:17 | 0:33:19 | |
Who's going to do the work? | 0:33:19 | 0:33:21 | |
-That'll be me. -Will it? | 0:33:21 | 0:33:23 | |
HE CHUCKLES | 0:33:23 | 0:33:24 | |
So what is the budget? | 0:33:24 | 0:33:25 | |
Budgeting for about £5,000, | 0:33:25 | 0:33:28 | |
but we are hoping to apply for a home improvements loan, | 0:33:28 | 0:33:33 | |
which is being funded by the Welsh Assembly, | 0:33:33 | 0:33:36 | |
so they're trying to help people to regenerate the area, as well, | 0:33:36 | 0:33:39 | |
-and get the empty homes back into use. -Brilliant. | 0:33:39 | 0:33:42 | |
-Sounds like a good thing. -Yes. | 0:33:42 | 0:33:43 | |
-And that's a cheaper rate loan or at least a loan. -Interest free. | 0:33:43 | 0:33:47 | |
So what about timescale? | 0:33:47 | 0:33:49 | |
-We're hoping three-to-four months. -Yes. | 0:33:49 | 0:33:52 | |
-It's all going to be on your back? -Oh, yes. -Can you do it in that time? | 0:33:52 | 0:33:56 | |
-Well... -I don't see why I can't. | 0:33:56 | 0:33:58 | |
With a bit of help. We've got fantastic parents | 0:33:58 | 0:34:01 | |
and hopefully they can help with some childcare, | 0:34:01 | 0:34:03 | |
which will help me to come up and give him a hand, really. | 0:34:03 | 0:34:07 | |
Well, listen, congratulations. Good luck with it. | 0:34:07 | 0:34:09 | |
-Thank you very much. -Cheers. -Look forward to seeing how you get on. | 0:34:09 | 0:34:14 | |
So... Ray and Paul choosing a place with family ties | 0:34:14 | 0:34:17 | |
for their first property investment venture. | 0:34:17 | 0:34:20 | |
How will they get along with that budget and that timescale? | 0:34:20 | 0:34:25 | |
You can find out later in the show. | 0:34:25 | 0:34:27 | |
Tucked away on the Kent coastline | 0:34:32 | 0:34:34 | |
is the pretty fishing town of Whitstable | 0:34:34 | 0:34:37 | |
and it's here that we cast our property nets | 0:34:37 | 0:34:39 | |
and came up with a two-bed new-style cottage | 0:34:39 | 0:34:42 | |
overlooking a pleasant green. | 0:34:42 | 0:34:45 | |
It was brought for £146,000 by Brazilian-born Zira | 0:34:45 | 0:34:49 | |
as a new home for her and her 12-year-old son Max... | 0:34:49 | 0:34:52 | |
Not forgetting the dog, Indie, of course. | 0:34:52 | 0:34:55 | |
She was keen not to incur additional rental costs | 0:34:57 | 0:35:00 | |
and thought moving into her new home was the most cost-effective option. | 0:35:00 | 0:35:05 | |
But renovation while living in a house is never easy. | 0:35:05 | 0:35:08 | |
And now, 15 months after our last visit, | 0:35:08 | 0:35:11 | |
we're back to check on progress. | 0:35:11 | 0:35:13 | |
Ah, a summerhouse has appeared in a rejuvenated garden space | 0:35:15 | 0:35:19 | |
that should give them a bit more room! | 0:35:19 | 0:35:21 | |
But what about inside? | 0:35:21 | 0:35:23 | |
Oh, well, they've clearly moved in! | 0:35:28 | 0:35:30 | |
And in the front room, the chimney breast has been removed | 0:35:30 | 0:35:33 | |
to give a few more precious inches. | 0:35:33 | 0:35:36 | |
But it was upstairs where the main work was initially planned. | 0:35:36 | 0:35:40 | |
So what's it looking like? | 0:35:40 | 0:35:41 | |
Will the master bedroom...? | 0:35:44 | 0:35:47 | |
Well, it's got a bed in it. | 0:35:47 | 0:35:49 | |
And the really small bedroom that was for 12-year-old Max...? | 0:35:49 | 0:35:53 | |
Oh, well. That's looking a whole lot better. | 0:35:53 | 0:35:56 | |
Zira has made some progress up here, | 0:35:57 | 0:36:00 | |
but the main task was to make room for a bathroom under the eaves. | 0:36:00 | 0:36:04 | |
So what happened to that? | 0:36:04 | 0:36:06 | |
I had to put an application through the council | 0:36:07 | 0:36:09 | |
and about nine months after I bought the house... | 0:36:09 | 0:36:13 | |
Eight weeks later the council refused, | 0:36:13 | 0:36:15 | |
so you have to reapply with very little change | 0:36:15 | 0:36:19 | |
and then it takes another eight weeks for them to approve, | 0:36:19 | 0:36:22 | |
so that just happened a few weeks ago. | 0:36:22 | 0:36:25 | |
Well, finally then, Zira has got the green light | 0:36:25 | 0:36:28 | |
to go ahead with an upstairs bathroom. | 0:36:28 | 0:36:30 | |
But what's it been like living in a house that you're still working on? | 0:36:30 | 0:36:35 | |
I think the major problem is the bathroom's not very nice, | 0:36:35 | 0:36:39 | |
so we had to spend a lot of time at friends' houses. | 0:36:39 | 0:36:43 | |
We go for visits and stay for a shower! | 0:36:43 | 0:36:45 | |
SHE CHUCKLES | 0:36:45 | 0:36:47 | |
And the kitchen, as well. We can't really bake anything. | 0:36:47 | 0:36:50 | |
It's to be a dish with... A two-plate dish! | 0:36:50 | 0:36:52 | |
Well, I don't envy Zira | 0:36:54 | 0:36:55 | |
that she's still got most of the major work ahead of her! | 0:36:55 | 0:36:59 | |
I'm going to knock down the small kitchen with the dining room | 0:36:59 | 0:37:02 | |
and make it into a bigger kitchen-diner room. | 0:37:02 | 0:37:06 | |
I can probably stay with friends for a few days | 0:37:06 | 0:37:09 | |
and so in one go, otherwise it's very hard for us to cope. | 0:37:09 | 0:37:13 | |
She's also hoping that once the bathroom and kitchen are finished | 0:37:13 | 0:37:16 | |
to put a conservatory on the back of the house, | 0:37:16 | 0:37:18 | |
replacing that rather sorry lean-to. | 0:37:18 | 0:37:21 | |
But all her plans are dependent on money | 0:37:21 | 0:37:24 | |
and the key to her finances was selling her old house in Whitstable. | 0:37:24 | 0:37:27 | |
I put my house on the market immediately, | 0:37:29 | 0:37:31 | |
sold in about a few weeks and then | 0:37:31 | 0:37:36 | |
took about a month and a half | 0:37:36 | 0:37:38 | |
to put...the money to go through, | 0:37:38 | 0:37:41 | |
so that's when I paid my friend. | 0:37:41 | 0:37:43 | |
So with one debt repaid, | 0:37:45 | 0:37:46 | |
how much is she looking to spend on the cottage to get it how she wants? | 0:37:46 | 0:37:50 | |
My original budget was 25,000. | 0:37:51 | 0:37:53 | |
I think... Of course, I haven't finished the house yet, | 0:37:53 | 0:37:56 | |
so hopefully I will stick to it, | 0:37:56 | 0:38:00 | |
give or take a few thousand. | 0:38:00 | 0:38:01 | |
A £25,000 budget, on top of her £146,000 purchase price, | 0:38:03 | 0:38:08 | |
will take Zira's spend to 171,000. | 0:38:08 | 0:38:12 | |
So, will all the dust and disruption be worth it in the end? | 0:38:12 | 0:38:16 | |
What do two local estate agents think? | 0:38:16 | 0:38:18 | |
At the moment, it doesn't really provide | 0:38:18 | 0:38:22 | |
what people will want from a modern house | 0:38:22 | 0:38:24 | |
and the bathroom's very small. | 0:38:24 | 0:38:26 | |
The kitchen's very small. | 0:38:26 | 0:38:28 | |
But, certainly, there are things you could do to overcome that. | 0:38:28 | 0:38:30 | |
Garden's very nice. | 0:38:30 | 0:38:32 | |
Position's good, looking across the green, | 0:38:32 | 0:38:35 | |
and the cottage-style is very popular in Whitstable, | 0:38:35 | 0:38:38 | |
so it has got potential there. | 0:38:38 | 0:38:39 | |
Obviously, the cottage is far from finished | 0:38:40 | 0:38:42 | |
and, in particular, there is the upstairs bathroom to install | 0:38:42 | 0:38:45 | |
and improvements to the kitchen. | 0:38:45 | 0:38:48 | |
But what might the value of the house be once she's done | 0:38:48 | 0:38:51 | |
her £25,000 worth of work? | 0:38:51 | 0:38:54 | |
I think the property could achieve somewhere in the region of £225,000. | 0:38:54 | 0:38:59 | |
If it was renovated, allowing for the slight alteration upstairs | 0:38:59 | 0:39:03 | |
with the bathroom, then I suggest a figure of £220-£225,000. | 0:39:03 | 0:39:08 | |
So, potentially a pre-tax profit of between 49 and 54,000, | 0:39:08 | 0:39:13 | |
minus the usual taxes and expenses. | 0:39:13 | 0:39:16 | |
But what does Zira think about the valuation figures? | 0:39:16 | 0:39:19 | |
Oh. | 0:39:20 | 0:39:22 | |
No, I don't like it. | 0:39:22 | 0:39:23 | |
I would think, if it was completely done, I probably would get more. | 0:39:23 | 0:39:27 | |
Yes, well, it's difficult, really, | 0:39:27 | 0:39:29 | |
to judge the true value of the cottage at this stage | 0:39:29 | 0:39:32 | |
and, anyway, Zira isn't looking to sell any time soon. | 0:39:32 | 0:39:35 | |
But, despite the upheaval, | 0:39:35 | 0:39:37 | |
would she be tempted to tackle any more property projects? | 0:39:37 | 0:39:42 | |
If I was by myself, I would do it again sooner, | 0:39:42 | 0:39:45 | |
but I have to wait for my son to go off to university, | 0:39:45 | 0:39:47 | |
then I can do it again! | 0:39:47 | 0:39:49 | |
Next up, we wave goodbye to Whitstable | 0:39:53 | 0:39:56 | |
and whizz to Wales. | 0:39:56 | 0:39:58 | |
Nestled in the valleys 20 miles north of Cardiff | 0:39:58 | 0:40:00 | |
is the town of Penrhiwceiber | 0:40:00 | 0:40:02 | |
and it was here that we came across | 0:40:02 | 0:40:04 | |
a two-bed, mid-terraced house with hidden depths. | 0:40:04 | 0:40:08 | |
And, now, seven months later, | 0:40:08 | 0:40:10 | |
we're back to see if it's fit for inspection. | 0:40:10 | 0:40:12 | |
OK, so, eyes front, all looking good there. | 0:40:15 | 0:40:19 | |
But let's go inside and work from the lower ground up, I think. | 0:40:19 | 0:40:23 | |
In the kitchen, we took the old dated units out. | 0:40:28 | 0:40:31 | |
We've put more modern units in, | 0:40:31 | 0:40:35 | |
put new flooring in and painted it. | 0:40:35 | 0:40:37 | |
And moving up the house to the ground floor? | 0:40:39 | 0:40:42 | |
In the living room, we took the wallpaper off and redecorated, | 0:40:44 | 0:40:48 | |
carpeted throughout with some new radiators as well. | 0:40:48 | 0:40:51 | |
And the bathroom on this floor has also been completely refurbished. | 0:40:55 | 0:40:59 | |
So, what about that final storey? | 0:40:59 | 0:41:03 | |
Going up to the top floor, it's completely repainted and, | 0:41:03 | 0:41:06 | |
plus, we've put new doors all around. | 0:41:06 | 0:41:10 | |
So, the place has been finished fantastically | 0:41:10 | 0:41:12 | |
from top to bottom, or it is that bottom to top? I'm not sure. | 0:41:12 | 0:41:16 | |
But, clearly there has been a lot of work. | 0:41:16 | 0:41:19 | |
There was a 99-year lease, | 0:41:19 | 0:41:21 | |
which had just literally expired on the property. | 0:41:21 | 0:41:24 | |
That automatically reverted to a freehold, | 0:41:24 | 0:41:27 | |
all to do with just control of the mining works below ground, | 0:41:27 | 0:41:31 | |
but since that's now exhausted and no longer works, | 0:41:31 | 0:41:33 | |
they were happy to release it, so it's now fully freehold. | 0:41:33 | 0:41:37 | |
Well, that's great. | 0:41:38 | 0:41:39 | |
And just by getting the freehold, | 0:41:39 | 0:41:41 | |
they should have added value to the house. | 0:41:41 | 0:41:43 | |
But, with Paul busy on other projects, | 0:41:43 | 0:41:45 | |
their hoped-for three-to-four-month timescale went out the window. | 0:41:45 | 0:41:49 | |
So, how's their budget looking? | 0:41:49 | 0:41:51 | |
Initially, we budgeted £5-7,500. | 0:41:53 | 0:41:58 | |
Due to the fact that Paul has done almost everything himself, | 0:41:58 | 0:42:01 | |
we've managed to save on a lot of costs and we've actually come | 0:42:01 | 0:42:04 | |
in at about £3,000 without totting up everything on a calculator. | 0:42:04 | 0:42:09 | |
A £3,000 spend is impressive | 0:42:09 | 0:42:11 | |
and added to their £30,500 purchase price, | 0:42:11 | 0:42:14 | |
their first development project so far has cost them £33,500. | 0:42:14 | 0:42:20 | |
And they've also decided to rent out the house, rather than sell it on. | 0:42:20 | 0:42:24 | |
So, is that the right decision? | 0:42:24 | 0:42:26 | |
What do two local estate agents think? | 0:42:26 | 0:42:29 | |
If it was to be put to the sales market, | 0:42:29 | 0:42:31 | |
to be competitive with other houses in the area, | 0:42:31 | 0:42:33 | |
I would advise an asking price of £45,000. | 0:42:33 | 0:42:36 | |
We'd put this property on the open market for £47,500 | 0:42:36 | 0:42:41 | |
and we look to achieve £45,000. | 0:42:41 | 0:42:44 | |
Yeah, that's pretty much about the 45,000 mark for the area. | 0:42:44 | 0:42:47 | |
A valuation of £45,000 | 0:42:49 | 0:42:52 | |
would give a potential pre-tax profit of £11,500. | 0:42:52 | 0:42:57 | |
But the resale market is slow in the local area, | 0:42:57 | 0:43:01 | |
so Ray and Paul have now decided the letting market | 0:43:01 | 0:43:05 | |
is more suited for the house. | 0:43:05 | 0:43:07 | |
I would advise a rental in the region of £350-£375 per calendar month. | 0:43:07 | 0:43:12 | |
If the property was placed on the rental books, | 0:43:12 | 0:43:15 | |
then we'd probably look in the region of £335 per calendar month. | 0:43:15 | 0:43:19 | |
335 is probably a little bit low, | 0:43:19 | 0:43:23 | |
but we're quite confident that we could get 375. | 0:43:23 | 0:43:26 | |
Even that lower £335 per calendar month rental figure | 0:43:26 | 0:43:30 | |
would produce a healthy rental yield in the region of 12%. | 0:43:30 | 0:43:34 | |
Not bad as a starting point. | 0:43:34 | 0:43:37 | |
For our first investment property, | 0:43:38 | 0:43:42 | |
I'd say it's been an eye-opener and a good learning curve. | 0:43:42 | 0:43:46 | |
Yeah. We'd have no hesitations to do it again. | 0:43:46 | 0:43:48 | |
It's worked out really well so far. | 0:43:48 | 0:43:51 | |
So, from Martin and me, that's it. | 0:43:53 | 0:43:55 | |
Yes, but join us next time for more stories from the auctions, | 0:43:55 | 0:43:58 | |
here on Homes Under The Hammer. | 0:43:58 | 0:43:59 | |
-Look forward to seeing you then. -Goodbye. -Goodbye. | 0:43:59 | 0:44:02 |