Episode 4

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0:00:02 > 0:00:04Hello and welcome to the show. More and more people are looking

0:00:04 > 0:00:07to property as a way of investing their money rather than leaving it

0:00:07 > 0:00:11- in the bank.- Yes. You do need to have a bit of cash, some confidence

0:00:11 > 0:00:14and be prepared to do the hard work.

0:00:14 > 0:00:17A good way to get a feel of your local market,

0:00:17 > 0:00:19though, is to head down to the auction

0:00:19 > 0:00:22and see what's going under the hammer.

0:00:50 > 0:00:53# This village, baby

0:00:53 > 0:00:56# Ain't large enough to be a town. #

0:00:59 > 0:01:02This pretty and popular spot is Harborne,

0:01:02 > 0:01:07a suburb only about three miles west of the city of Birmingham,

0:01:07 > 0:01:09but with a much more village-y feel about it.

0:01:09 > 0:01:11It has plenty of local amenities

0:01:11 > 0:01:14and some attractive historical buildings.

0:01:14 > 0:01:18And I'm just a hop, skip and a jump away from that village centre.

0:01:18 > 0:01:20So nice, residential area.

0:01:20 > 0:01:22Obviously, very close to local schools - there is

0:01:22 > 0:01:24one right across the road.

0:01:24 > 0:01:26Here to see a three-bed terrace

0:01:26 > 0:01:29at a guide price the like of which I've not heard before -

0:01:29 > 0:01:32£64,000 to £69,000.

0:01:32 > 0:01:34Isn't that, like, an odd amount?

0:01:34 > 0:01:38Anyway, it is what it is. And it looks pretty good from the outside.

0:01:38 > 0:01:39Whoo, whoo, whoo!

0:01:45 > 0:01:49Thank goodness for double glazing, eh?

0:01:49 > 0:01:52Away from the noise of the school then and into the property.

0:01:52 > 0:01:55And straightaway, a really nice feel. It doesn't smell damp.

0:01:55 > 0:01:58The carpets look like they're in good condition.

0:01:58 > 0:02:01Nice little entrance area here. Stairs up to your bedrooms there.

0:02:01 > 0:02:03And then progressing into the kitchen.

0:02:03 > 0:02:04Now, it's not in bad condition.

0:02:04 > 0:02:06I mean, if you're renting this place out,

0:02:06 > 0:02:08you'd pretty much leave it as it is.

0:02:08 > 0:02:10It all seems to be vaguely working, which is good.

0:02:10 > 0:02:12Not a bad size.

0:02:12 > 0:02:14So, yeah, that gets my seal of approval.

0:02:14 > 0:02:16And then, through this way.

0:02:16 > 0:02:18I like houses where you can walk around, it's...

0:02:18 > 0:02:21I don't know, just I like it. It's feng shui. It works for me.

0:02:21 > 0:02:26This here... A large lounge, lots of light. You've got an open fire.

0:02:26 > 0:02:29Yeah, ticking a lot of boxes already.

0:02:35 > 0:02:37So, upstairs. Nice little landing area.

0:02:37 > 0:02:39And then a separate loo and bathroom.

0:02:39 > 0:02:41You probably know, I actually quite like that.

0:02:41 > 0:02:44Other people might want to consider knocking that into one.

0:02:44 > 0:02:47And then currently three bedrooms. Smaller boxroom there.

0:02:47 > 0:02:50Largish bedroom towards the front there.

0:02:50 > 0:02:52And then a third bedroom there.

0:02:52 > 0:02:56And then what could potentially be a fourth bedroom is actually

0:02:56 > 0:02:58currently laid out as a wet room.

0:02:58 > 0:03:00If you didn't need those facilities,

0:03:00 > 0:03:02that would then become another bedroom.

0:03:02 > 0:03:07So a four-bedroom property. Wow, for that guide price, pretty good.

0:03:13 > 0:03:15So, from what looks like a new house from the outside,

0:03:15 > 0:03:18you might have expected a very small rear garden.

0:03:19 > 0:03:21Hold that thought for a second.

0:03:21 > 0:03:24Before I move onto the garden, look at this.

0:03:24 > 0:03:26Just outside the back door, there's a soil pipe.

0:03:26 > 0:03:27And going into it,

0:03:27 > 0:03:31some pipes from probably the toilet or basin upstairs.

0:03:31 > 0:03:33As you can see, they're dripping just little

0:03:33 > 0:03:36amounts of water into this area of the property.

0:03:36 > 0:03:37"So what?", you might say.

0:03:37 > 0:03:38Well, believe me,

0:03:38 > 0:03:41just that amount of water dripping into that spot over

0:03:41 > 0:03:43a relatively short amount of time is going to cause all

0:03:43 > 0:03:45sorts of problems for the foundations.

0:03:45 > 0:03:47It could lead to subsidence in the future.

0:03:47 > 0:03:50So, if you've got that going on in your house, sort it out now.

0:03:50 > 0:03:52And if you were to buy this place,

0:03:52 > 0:03:55definitely that is something that I would sort out pretty pronto.

0:03:55 > 0:03:58Meanwhile, back to that garden. And...

0:03:58 > 0:04:03Oh, no! Look at this! Not some postage stamp with artificial grass.

0:04:03 > 0:04:06No, no, no. A great-sized, well-established garden,

0:04:06 > 0:04:07with nice trees and shrubs.

0:04:09 > 0:04:12It doesn't really tally with the look from the outside.

0:04:12 > 0:04:13This is kind of intriguing.

0:04:14 > 0:04:17There's also some useful outbuildings with

0:04:17 > 0:04:19a loo and storage space.

0:04:20 > 0:04:22And a handy side passageway.

0:04:24 > 0:04:28So, it's great to have the access to the garden, but what is that?!

0:04:31 > 0:04:34That, dear viewer, is a flying freehold.

0:04:34 > 0:04:36I thought it felt a bit weird upstairs,

0:04:36 > 0:04:37like it was bigger than downstairs.

0:04:37 > 0:04:39Well, the reason is that bit there is actually

0:04:39 > 0:04:41part of the upstairs of this building.

0:04:41 > 0:04:45"So what?", you might think, "Fantastic news." Well, no.

0:04:45 > 0:04:49When it comes to lending, mortgage lenders... Unless that is absolutely

0:04:49 > 0:04:53clear in the title deeds, you might find that there's a bit of an issue.

0:04:53 > 0:04:56So make sure your solicitor checks it out before you buy it.

0:05:01 > 0:05:03But what does a local property expert make

0:05:03 > 0:05:05of this pretty together property?

0:05:05 > 0:05:09With a guide price of £64,000 to £69,000,

0:05:09 > 0:05:12could it make a good investment on the resale market?

0:05:12 > 0:05:17Renovated as it is, in terms of accommodation, the property would

0:05:17 > 0:05:19sell on the open market for something between £105,00

0:05:19 > 0:05:21and £110,000.

0:05:21 > 0:05:23If this property was to be a four-bedroom

0:05:23 > 0:05:25and the wet room was converted,

0:05:25 > 0:05:28it would probably be on the open market for about £125,000

0:05:28 > 0:05:30to £130,000.

0:05:30 > 0:05:33What about its rental potential?

0:05:33 > 0:05:36As a three-bed, this property would rent for something between

0:05:36 > 0:05:39£600 per calendar month and £650 per calendar month.

0:05:39 > 0:05:42If the property was renovated to make a four-bed, the rental

0:05:42 > 0:05:46would be something between £650 per calendar month and £700 per

0:05:46 > 0:05:49calendar month, obviously depending on the condition of the property.

0:05:53 > 0:05:55Well, clarify that flying freehold issue,

0:05:55 > 0:05:58figure out what you're going to do with all those bathrooms,

0:05:58 > 0:06:00and I think you've got yourself a cracking little property here.

0:06:00 > 0:06:04Let's see who agreed when it went under the hammer.

0:06:04 > 0:06:05This next lot

0:06:05 > 0:06:09is a traditional three-bedroom freehold

0:06:09 > 0:06:11mid-terraced house.

0:06:11 > 0:06:13Where shall we start, folks? Lots of interest.

0:06:13 > 0:06:1670,000 to get it started. Anyone want to buy this?

0:06:16 > 0:06:18At £70,000 to get it going.

0:06:18 > 0:06:20Where are we?

0:06:20 > 0:06:22At 70,000, and thank you.

0:06:22 > 0:06:25At £70,000, then.

0:06:25 > 0:06:27Do I have 75 anywhere?

0:06:27 > 0:06:2975 on the front.

0:06:29 > 0:06:32You want one. If we're quick with ones. 76.

0:06:32 > 0:06:3577? 77. 78?

0:06:35 > 0:06:3778. 79?

0:06:38 > 0:06:4079. 80?

0:06:40 > 0:06:4180. 81?

0:06:43 > 0:06:46No? 81. 82?

0:06:46 > 0:06:47No.

0:06:47 > 0:06:51At £81,000, on sale, make no mistake.

0:06:51 > 0:06:54One, two, three...

0:06:54 > 0:06:59496, that is yours, sir, at £81,000. And well done.

0:06:59 > 0:07:04And so the hammer fell at £81,000 on the three-bed mid-terrace.

0:07:04 > 0:07:06And the delighted bidder was Jimmy.

0:07:07 > 0:07:09Jimmy lives locally and works

0:07:09 > 0:07:11in the family property developing company.

0:07:11 > 0:07:14And he joined me, along with his brother Wassim,

0:07:14 > 0:07:16back at the Harborne house.

0:07:17 > 0:07:20- Jimmy, Wassim, great to meet you both.- Nice to meet you too.

0:07:20 > 0:07:24Congratulations. Tell me why you wanted to buy this place.

0:07:24 > 0:07:27What it is, it fell in our budget

0:07:27 > 0:07:30for what we wanted to purchase at the auction.

0:07:30 > 0:07:32And to be honest, it was in the range,

0:07:32 > 0:07:34so we thought we'd just go for it.

0:07:34 > 0:07:36Right. I understand this is part of a family business.

0:07:36 > 0:07:38- You want to tell me a bit about that?- Yeah.

0:07:38 > 0:07:41What it is, we work alongside our four uncles.

0:07:42 > 0:07:44Within us, we have got, like, about

0:07:44 > 0:07:47- 100 houses throughout the portfolio, yeah.- Wow!

0:07:47 > 0:07:50So the family have a history of property?

0:07:50 > 0:07:53Yeah, we have been doing it for the last...I'd say about, oh,

0:07:53 > 0:07:5415, 20 years?

0:07:54 > 0:07:57So how do you split up the work that needs to be done?

0:07:57 > 0:07:59Wassim, what do you do, for instance?

0:07:59 > 0:08:00I do go to the auctions too

0:08:00 > 0:08:02and I do purchase my own as well.

0:08:02 > 0:08:04- Right. OK.- And just split it up, really, just like that.

0:08:04 > 0:08:07Right. And Jimmy, what do you sort of specialise in?

0:08:07 > 0:08:10I mainly go to the auctions...

0:08:10 > 0:08:14Well, this particular property, I did, like, kind of blindly buy it.

0:08:14 > 0:08:15How do you mean?

0:08:15 > 0:08:18Because I didn't view it before I bought it, kind of thing.

0:08:18 > 0:08:22But that was only because it fell into, you know, the budget.

0:08:22 > 0:08:25And I did take a bit of a gamble on this one.

0:08:25 > 0:08:27So what did you think when you walked through the door?

0:08:27 > 0:08:30Well, we were really, really glad the way it turned out.

0:08:30 > 0:08:33You know, we were really happy. Yeah.

0:08:33 > 0:08:37Hm, not seeing it before they buy? Always risky.

0:08:37 > 0:08:39But these guys are experienced developers

0:08:39 > 0:08:41with plans to rent it out.

0:08:41 > 0:08:43And I guess, if you've got 100 properties,

0:08:43 > 0:08:47you'd feel you can cope with most things a house can throw at you.

0:08:50 > 0:08:54- So what is the budget?- The budget is £1,000.- 1,000?!- Yeah.

0:08:54 > 0:08:56What are you planning to do for that?

0:08:56 > 0:08:59Well, in that, we are going to get the wet room converted.

0:08:59 > 0:09:01- Into a bedroom.- OK.

0:09:01 > 0:09:04We're going to get the garden done as well, all cleaned out.

0:09:04 > 0:09:07Other than that, just a bit of painting.

0:09:07 > 0:09:08And timescale?

0:09:08 > 0:09:11- Between one and two weeks. - Weeks?!- Yeah.

0:09:11 > 0:09:15- MARTIN LAUGHS Very fast.- Bing! In here.

0:09:15 > 0:09:17For this property, we've got someone that's ready

0:09:17 > 0:09:18to get into it straightaway.

0:09:18 > 0:09:21- So I guess that's another reason why you need to do it quickly.- Exactly.

0:09:21 > 0:09:24- Well, listen, congratulations. Good to meet you.- Brilliant.

0:09:24 > 0:09:26- Nice to meet you too.- Good luck with it.- Take care.

0:09:26 > 0:09:29- Thanks for your time.- Thank you.

0:09:29 > 0:09:32Well, the brothers breaking a golden rule

0:09:32 > 0:09:36in not viewing the property beforehand. Tut-tut!

0:09:36 > 0:09:39You know it is a bad thing to do, don't you?

0:09:39 > 0:09:43Anyway, it seems like they got away with it in this instance.

0:09:43 > 0:09:48But £1,000 to do it up in one to two weeks? Really?

0:09:48 > 0:09:50You can find out how they get on later in the show.

0:09:53 > 0:09:57Maida Vale in the city of Westminster, in London, is

0:09:57 > 0:10:00recognisable by its large late Victorian and Edwardian

0:10:00 > 0:10:05blocks of mansion flats in these beautiful tree-lined streets.

0:10:08 > 0:10:11Right on the fringes of Maida Vale is Maida Hill, which is

0:10:11 > 0:10:14slightly less expensive to buy in.

0:10:14 > 0:10:17But this is a vibrant, colourful neighbourhood.

0:10:18 > 0:10:22And the property I'm here to see is a two-bedroom flat.

0:10:22 > 0:10:25And it is above this delightful little cafe here.

0:10:25 > 0:10:29Guide price - £225,000.

0:10:32 > 0:10:36Now, bear with me, won't you? There's a fair few stairs to climb.

0:10:36 > 0:10:38# We're running up that road

0:10:38 > 0:10:41# We're running up that hill

0:10:41 > 0:10:43# We're running up that building. #

0:10:47 > 0:10:48Thank goodness I'm here!

0:10:48 > 0:10:50I know I said it was at the top,

0:10:50 > 0:10:52but it really is at the top of the top of the top.

0:10:52 > 0:10:54There are a lot of stairs to climb.

0:10:54 > 0:10:57And I don't even have any shopping bags.

0:10:57 > 0:11:00So, once I've got over that shock, let's have a look around this flat.

0:11:00 > 0:11:05Now, straightaway, you don't get the feeling of space and high ceilings.

0:11:05 > 0:11:07It is quite a small, compact flat.

0:11:07 > 0:11:09Bedroom - small.

0:11:09 > 0:11:12Second bedroom - small again.

0:11:12 > 0:11:15Bathroom - not bad. Blue tiles, we could change that.

0:11:15 > 0:11:21And into the living room/kitchen/sitting area.

0:11:21 > 0:11:23So, the layout is not fantastic here

0:11:23 > 0:11:26and space is not in abundance,

0:11:26 > 0:11:29so I think I would try and change this kitchen around.

0:11:29 > 0:11:33You've got to think about putting a little table in here as well,

0:11:33 > 0:11:35so you can eat. I'd get rid of all this furniture

0:11:35 > 0:11:38and just have something a lot more manageable.

0:11:38 > 0:11:41For me, it's just a little bit on the small side.

0:11:44 > 0:11:46On the plus side though,

0:11:46 > 0:11:49the property is in pretty good condition, so it wouldn't

0:11:49 > 0:11:53take much to get it ready for the rental or sales markets,

0:11:53 > 0:11:57especially if you're happy with the layout as it is.

0:11:57 > 0:12:00It does need central heating installing,

0:12:00 > 0:12:03but with a guide price of 225,000+

0:12:03 > 0:12:05in a sought-after area

0:12:05 > 0:12:08such as Maida Hill, this little flat

0:12:08 > 0:12:10could bring in a big profit.

0:12:11 > 0:12:16# From small things, Mama Big things one day come. #

0:12:16 > 0:12:20We've asked along a local property expert for their opinion.

0:12:21 > 0:12:25It is a tiny flat. It's not the biggest of flats, but it has got

0:12:25 > 0:12:28two good-sized bedrooms, it is a good location.

0:12:28 > 0:12:31It would be ideal for

0:12:31 > 0:12:36young couples or a first-time buyer who possibly can rent out

0:12:36 > 0:12:37the second bedroom.

0:12:38 > 0:12:41Let's start considering the numbers.

0:12:41 > 0:12:46In the current rental market, we would expect to achieve £350

0:12:46 > 0:12:50per week, which is approximately £1,500 per calendar month.

0:12:50 > 0:12:53So that's good. What about the sales?

0:12:53 > 0:12:55Once renovated, I think

0:12:55 > 0:12:59this apartment should achieve in the region of £400,000.

0:13:00 > 0:13:05Well, if you do get it anywhere near that guide price of £225,000+

0:13:05 > 0:13:07and keep costs down,

0:13:07 > 0:13:10that could potentially be a very healthy return on your investment.

0:13:10 > 0:13:14So selling or renting on should be straightforward.

0:13:14 > 0:13:17This is a great central London location here.

0:13:17 > 0:13:21But let's not forget this snug flat is above a shop.

0:13:21 > 0:13:24And there are quite a lot of stairs to climb before you even get inside.

0:13:24 > 0:13:26Still, you're five minutes from the Tube station

0:13:26 > 0:13:29and a ten-minute walk from one of London's most famous

0:13:29 > 0:13:32bustling markets - Portobello Road.

0:13:32 > 0:13:36So let's see who fancied this lot when it went to auction.

0:13:43 > 0:13:46Self-contained, third-floor flat,

0:13:46 > 0:13:47200 may I say?

0:13:47 > 0:13:50Thank you, gentleman there. At 200.

0:13:50 > 0:13:51Shall we say 210?

0:13:51 > 0:13:53210 will be it, thank you. 210.

0:13:53 > 0:13:55So 220 now. 230?

0:13:55 > 0:13:57230, thank you.

0:13:57 > 0:13:59And 240. 250? No.

0:13:59 > 0:14:03240 then. In the sort of coral shirt there.

0:14:03 > 0:14:04240.

0:14:04 > 0:14:05250 anywhere?

0:14:07 > 0:14:12With the lot proving popular, we rejoin at 320,000.

0:14:12 > 0:14:14320, gentleman there.

0:14:14 > 0:14:16Sunglasses on his head.

0:14:16 > 0:14:18£320,000.

0:14:18 > 0:14:19First time at 320.

0:14:21 > 0:14:23Second time at 320.

0:14:25 > 0:14:27He's back. Thank you, 325. 330 now.

0:14:27 > 0:14:29It's still going. 35? He's thinking.

0:14:29 > 0:14:31330 then, the gentleman here.

0:14:31 > 0:14:34330,000 for the first time.

0:14:34 > 0:14:3635. 40?

0:14:38 > 0:14:39Says no. OK, I think we're close.

0:14:39 > 0:14:42So we've got 335 here, very front.

0:14:42 > 0:14:44335 for the first.

0:14:44 > 0:14:45Second.

0:14:45 > 0:14:4740, he's back. 45?

0:14:48 > 0:14:51He says no. First time.

0:14:51 > 0:14:52Second time.

0:14:52 > 0:14:53345.

0:14:56 > 0:14:58Quite sure?

0:14:58 > 0:14:59I'm trying for you.

0:15:00 > 0:15:01345, very front.

0:15:01 > 0:15:04White shirt and shorts. First time.

0:15:04 > 0:15:05Second time.

0:15:06 > 0:15:11Third and final time. Very front then at 345,000, against you.

0:15:11 > 0:15:14There we go. Sold. Fair enough.

0:15:16 > 0:15:19# Smooth operator

0:15:20 > 0:15:23# Smooth operator. #

0:15:25 > 0:15:29The successful bidder was Aleksandar, originally from Serbia.

0:15:29 > 0:15:33And if he was nervous about the price, well, he didn't show it.

0:15:33 > 0:15:37Aleksandar has been living in the United Kingdom for 50 years

0:15:37 > 0:15:40and has been a property developer for 30 of those.

0:15:40 > 0:15:44I met him back at his latest purchase to find out his plans.

0:15:45 > 0:15:48- Aleksandar, congratulations. - Thank you.

0:15:48 > 0:15:50So why did you want to buy this flat?

0:15:50 > 0:15:56Because it is a very good position, very close to West End,

0:15:56 > 0:15:59very close to Paddington and

0:15:59 > 0:16:03all the facilities around here.

0:16:03 > 0:16:05Have you bought it for yourself to live in or as an investment?

0:16:05 > 0:16:08No, no, as an investment, yeah.

0:16:08 > 0:16:10And what are you going to do to the flat?

0:16:10 > 0:16:13Are you going to let it out or are you going to do it up and sell it?

0:16:13 > 0:16:15I'm going to do it up and sell it, yeah.

0:16:15 > 0:16:18So, were you happy with the price you paid on auction day?

0:16:18 > 0:16:21I am very happy, yeah, yeah.

0:16:21 > 0:16:23I was very happy when I saw the flat

0:16:23 > 0:16:27because it is in much better condition than I thought it was.

0:16:27 > 0:16:30- So had you viewed the flat before the auction?- No.

0:16:30 > 0:16:32- SHE GASPS - So you purely just looked at it

0:16:32 > 0:16:38- in the catalogue?- Yeah, I looked at it on the computer, internet.

0:16:38 > 0:16:41And what are you going to do inside to really make this place look

0:16:41 > 0:16:47- wow?- I hope to put a new floor and new central heating.

0:16:47 > 0:16:50- And what about the bathroom? - Yes, bathroom as well.

0:16:50 > 0:16:51Bathroom has to be changed.

0:16:51 > 0:16:54What's your budget? How much money have you got to spend?

0:16:54 > 0:16:56Well, about £10,000.

0:16:56 > 0:17:00Aleksandar is clearly confident that he has made a sound investment

0:17:00 > 0:17:04here and he plans to consult local property agents before he makes

0:17:04 > 0:17:06any changes to the layout.

0:17:06 > 0:17:09Of course, he would have to check any structural changes

0:17:09 > 0:17:12meet with the freeholder's permission.

0:17:12 > 0:17:16The flat is leasehold and has just over 100 years left on the lease,

0:17:16 > 0:17:19and the freeholder intends doing some of the work to the

0:17:19 > 0:17:24block, so Aleksandar will wait until that is done before selling.

0:17:24 > 0:17:26Aleksandar, good luck with the project.

0:17:26 > 0:17:29- And I think I am right in saying you were lucky here.- Thank you.

0:17:29 > 0:17:31Thank you.

0:17:31 > 0:17:35Aleksandar, well, he took a big risk here by not seeing this flat,

0:17:35 > 0:17:37but luckily, it has paid off.

0:17:37 > 0:17:42He has got £10,000 to spend and years of experience behind him.

0:17:42 > 0:17:45Join me later in the programme to find out

0:17:45 > 0:17:48if Alex has made a profit in Maida Vale.

0:17:50 > 0:17:56Still to come, in Dunfermline, it all boils down to the three Ps -

0:17:56 > 0:17:59planning, parking and pavements.

0:18:02 > 0:18:06And in Maida Hill, will the profits be pouring in from Aleksandar's

0:18:06 > 0:18:08top-floor flat? We'll find out later.

0:18:14 > 0:18:18It was just outside Birmingham, in the popular residential

0:18:18 > 0:18:21area of Harborne, where we first came across a three-bedroom,

0:18:21 > 0:18:25mid-terraced property that was actually in pretty good nick.

0:18:25 > 0:18:27That's exactly why brothers Jimmy

0:18:27 > 0:18:30and Wassim bought it for £81,000

0:18:30 > 0:18:33as yet another addition to the

0:18:33 > 0:18:37family firm's 100-strong letting portfolio.

0:18:37 > 0:18:41But they weren't planning on a big spend on this one.

0:18:41 > 0:18:43# We're talking about money, money

0:18:43 > 0:18:46# We're talking about money, money... #

0:18:46 > 0:18:49- So, what's the budget? - The budget is £1,000.- 1,000?- Yeah.

0:18:52 > 0:18:55Now, just three weeks later, we're back

0:18:55 > 0:18:59to find out how project manager Jimmy has got on.

0:19:00 > 0:19:03Yes, well, outside was already in good shape,

0:19:03 > 0:19:09though there are plans to put in off-road parking in the future.

0:19:09 > 0:19:10But what about inside?

0:19:21 > 0:19:24We've had the whole house renovated.

0:19:24 > 0:19:28We've had the upstairs bathroom and toilet knocked into one.

0:19:31 > 0:19:35We've had the wet room converted into a bedroom.

0:19:38 > 0:19:41And having given the other three bedrooms a good makeover,

0:19:41 > 0:19:44the property is now a four-bedroomed house.

0:19:47 > 0:19:50Did they meet that two-week deadline?

0:19:51 > 0:19:53Yeah. It's been done in two weeks.

0:19:54 > 0:19:56That's pretty impressive.

0:19:56 > 0:19:59And it wasn't just the house they completed in two weeks.

0:20:01 > 0:20:04Initially, the garden was overgrown.

0:20:04 > 0:20:06The fact that we've had it all tidied up,

0:20:06 > 0:20:09it has really turned out to be a really big garden

0:20:09 > 0:20:11and you get to see the whole of the garden,

0:20:11 > 0:20:14and surprisingly, it goes over the fence as well.

0:20:15 > 0:20:20So, what has Jimmy been doing for this short two-week project?

0:20:20 > 0:20:23For the last two weeks I've been, like, here every day,

0:20:23 > 0:20:27on top of all the workers, just making sure everything's perfect

0:20:27 > 0:20:30and to be honest, it's all been done good.

0:20:30 > 0:20:32Yes, it certainly has in terms of timescale,

0:20:32 > 0:20:35but what about that rather tight budget?

0:20:37 > 0:20:40Initially, the budget was £1,000,

0:20:40 > 0:20:44but we've had to stretch it up to around £1,800.

0:20:44 > 0:20:48That's due to the fact that we've had a lot of stuff done.

0:20:49 > 0:20:54Even so, £1,800 seems like a good deal for what they've achieved.

0:20:54 > 0:20:57And with their £81,000 purchase price,

0:20:57 > 0:21:02it takes their total spend to £82,800.

0:21:02 > 0:21:06So, have they done enough to make this ready for the local market?

0:21:06 > 0:21:08What do two local estate agents think?

0:21:10 > 0:21:13Should this property come on the open market for sale, I'd recommend

0:21:13 > 0:21:20a guide price of £90,000 to achieve offers between 85,000 and 90,000.

0:21:20 > 0:21:24I believe the property would be marketed at £89,950

0:21:24 > 0:21:28to achieve between £82-85,000.

0:21:28 > 0:21:33Ah, well, those values could see a small loss of £800

0:21:33 > 0:21:36or a potential pre-tax profit of £7,200.

0:21:38 > 0:21:42But there is that off-road parking still to do and it does all

0:21:42 > 0:21:46depend on find a buyer in an area where rental values are strong.

0:21:46 > 0:21:49So what does Jimmy think about that?

0:21:49 > 0:21:51The value doesn't mean much to me

0:21:51 > 0:21:53but because it's going on the rental market,

0:21:53 > 0:21:56that was the key thing that we were looking forward to.

0:21:56 > 0:22:00And to be honest, because we've got people lined up for it already,

0:22:00 > 0:22:04tenants, they are moving in and about three days' time so, yeah.

0:22:05 > 0:22:07Yes, this has never been about resale.

0:22:07 > 0:22:12In fact, the family firm have yet to sell any of their 100+ properties.

0:22:12 > 0:22:15But with that tenant already lined up,

0:22:15 > 0:22:17have they got a good rental rate?

0:22:17 > 0:22:19The rental market in this area is very strong.

0:22:19 > 0:22:21Should this go to the rental markets,

0:22:21 > 0:22:25I would suggest a £700 per calendar month rental.

0:22:25 > 0:22:28I believe if the property was placed on the rental market, we would be

0:22:28 > 0:22:33able to able to achieve a figure of £695-725 per calendar month.

0:22:33 > 0:22:35Well, they are more or less close to what we are getting.

0:22:35 > 0:22:40We are getting £750 per calendar month, so it's all good.

0:22:42 > 0:22:44Well, that's impressive.

0:22:44 > 0:22:48And £750 per calendar month represents an annual rental

0:22:48 > 0:22:53yield in excess of 10%. Not bad at all.

0:22:53 > 0:22:56So, will this family team be back at the auctions?

0:22:58 > 0:23:02Well, my brother is at the auction now and to be honest, I need to find

0:23:02 > 0:23:06out what is going on with him now to see if they have purchased anything.

0:23:06 > 0:23:09And yeah, we will carry on buying more houses.

0:23:16 > 0:23:20So, from a property empire in Birmingham, we move to Scotland,

0:23:20 > 0:23:25to Dunfermline, a town with a long association with Scottish royalty.

0:23:25 > 0:23:27Beginning in the 11th century

0:23:27 > 0:23:30when King Malcolm III married his bride, Margaret,

0:23:30 > 0:23:34in the local church, which later became Dunfermline Abbey.

0:23:36 > 0:23:38It must have been a great wedding

0:23:38 > 0:23:40because Malcolm took rather a shine to the place,

0:23:40 > 0:23:45and for a while, the town became the unofficial capital of Scotland.

0:23:45 > 0:23:48In more recent times, Dunfermline is famous for being

0:23:48 > 0:23:51the birthplace of renowned philanthropist Andrew Carnegie,

0:23:51 > 0:23:54and was home to '80s pop band Big Country.

0:24:00 > 0:24:06Well, just a mile from the town centre of Dunfermline is this plot

0:24:06 > 0:24:10of land that went up for auction with a guide price of £20,000.

0:24:10 > 0:24:13Now, apparently, talking to the locals, for the last 30 years

0:24:13 > 0:24:17it has been used as a car park, and that indeed is a car.

0:24:17 > 0:24:20What could it be? Well...

0:24:20 > 0:24:22That's for us to discover.

0:24:25 > 0:24:29It's a corner plot of around 250 square metres in size and

0:24:29 > 0:24:32there was obviously a building here at some point,

0:24:32 > 0:24:34long since demolished.

0:24:34 > 0:24:36OK, so let's review what we've got here.

0:24:36 > 0:24:40You are obviously in an area where there are lots of utilities.

0:24:40 > 0:24:44I mean, you've got electricity, you've probably got sewerage,

0:24:44 > 0:24:46gas within easy reach so that's good news.

0:24:46 > 0:24:50Bad news is - the roads are extremely narrow

0:24:50 > 0:24:54and you are pretty much surrounded on all sides by housing.

0:24:54 > 0:24:56Those people would probably have something to

0:24:56 > 0:24:58say about whatever was built here.

0:24:58 > 0:25:02So in terms of your potential for planning permission,

0:25:02 > 0:25:04I think not too bad.

0:25:04 > 0:25:07I'm sure the council would like to see it used for something,

0:25:07 > 0:25:08maybe affordable housing.

0:25:08 > 0:25:11All in all, out of ten,

0:25:11 > 0:25:13I'd give it about a 6.5.

0:25:16 > 0:25:19One thing you are going to have to consider before you develop

0:25:19 > 0:25:21this is the issue of pavements.

0:25:21 > 0:25:25This one is very narrow and you can't just go either extending it

0:25:25 > 0:25:28or taking it away without getting the council involved.

0:25:28 > 0:25:30For them to be involved,

0:25:30 > 0:25:33they're going to have to talk about maybe lowering the kerb...

0:25:33 > 0:25:35Getting people out to do all that kind of stuff

0:25:35 > 0:25:36isn't going to be cheap,

0:25:36 > 0:25:39so it is definitely something to factor into your budget.

0:25:43 > 0:25:45Pavements, parking, and access.

0:25:45 > 0:25:49The local council planning department will have a field day,

0:25:49 > 0:25:51so I reckon it's high time we got

0:25:51 > 0:25:54the opinion of the auctioneer who sold the property.

0:25:55 > 0:25:58The possibilities for this plot, I think,

0:25:58 > 0:26:00are mainly the opportunity to obtain

0:26:00 > 0:26:02consent for residential development.

0:26:02 > 0:26:05It's an established residential area.

0:26:05 > 0:26:07There is both traditional houses, stone-built houses,

0:26:07 > 0:26:11and some more modern ones. I think there wouldn't be any problem

0:26:11 > 0:26:14obtaining consent for perhaps two units.

0:26:17 > 0:26:21The agent thinks the site, guided at £20,000, would work for two

0:26:21 > 0:26:27two-bedroom flats and they could each be worth £100-110,000.

0:26:27 > 0:26:30If the flats were rented out, I would anticipate

0:26:30 > 0:26:35they should be able to get £650 per calendar month for each flat.

0:26:35 > 0:26:38Well, you certainly can't complain about location close to the

0:26:38 > 0:26:40town centre or the fact the plot is nice and level

0:26:40 > 0:26:42and has easy access to services.

0:26:42 > 0:26:46Maybe a few planning permission issues regarding the neighbours

0:26:46 > 0:26:48and these very narrow streets.

0:26:48 > 0:26:52So, not necessarily a no-brainer, but possibly worth a punt.

0:26:52 > 0:26:54Let's see who agreed when it went under the hammer.

0:26:55 > 0:26:58We move on to lot three, we stay in Fife,

0:26:58 > 0:27:00but we move across to Dunfermline.

0:27:00 > 0:27:03The land we are selling is situated in an attractive mixed

0:27:03 > 0:27:07residential area approximately one mile from the town centre.

0:27:07 > 0:27:10Somebody start me off with lot three. I'm looking for 20,000.

0:27:11 > 0:27:1420,000 anywhere? 18,000?

0:27:16 > 0:27:18It'll be big enough to put something on this.

0:27:18 > 0:27:21Again, a good development opportunity. 16, then.

0:27:22 > 0:27:26- 16 anywhere?- Could be 15? - 15, 15 I will take. Thank you.

0:27:26 > 0:27:2915 to get me going. Is there 16 anywhere else?

0:27:30 > 0:27:3216 I have, thank you. 17?

0:27:33 > 0:27:3616,500 on the proxy. Gosh, you're working me hard already.

0:27:36 > 0:27:4116,500 I will take. 17, I am looking for. 17 I have. 17,500?

0:27:41 > 0:27:44Proxy is out. The bid is with a gentleman in the room at 17,000.

0:27:44 > 0:27:46Do we have any other interest?

0:27:46 > 0:27:49We are all done at 17,000, I am selling...

0:27:49 > 0:27:51Any other interest?

0:27:52 > 0:27:5317 going once...

0:27:55 > 0:27:58Twice... Third and final time.

0:27:58 > 0:28:01Sold to the gentleman in the room at 17,000. Thank you.

0:28:03 > 0:28:08The successful bidder getting the lot for £17,000 was Andy.

0:28:09 > 0:28:12Andy is registered blind.

0:28:12 > 0:28:15He currently owns two flats in Edinburgh which he lets out.

0:28:16 > 0:28:19He came along with his wife Shintana to tell us

0:28:19 > 0:28:22what plans he has for this little piece of Dunfermline.

0:28:27 > 0:28:30- Shintana, Andy, nice to meet you both.- Thank you.- Nice to meet you.

0:28:30 > 0:28:33- Congratulations.- Oh, thank you. - Thank you.

0:28:33 > 0:28:35So why a plot of land, then,

0:28:35 > 0:28:37rather than a house which you could renovate?

0:28:37 > 0:28:39What led you to this, do you think?

0:28:39 > 0:28:44Partly because we like the challenge of building something new.

0:28:44 > 0:28:45We just thought it was a good idea.

0:28:45 > 0:28:48So have you done anything like this before?

0:28:48 > 0:28:51We did buy a house at auction before and Shint and I

0:28:51 > 0:28:56worked on it for three months, and when we sold it we made

0:28:56 > 0:29:00a profit of about £600, so for three months work it wasn't...

0:29:00 > 0:29:04- Right, so not the best financial decision you ever made.- No.

0:29:04 > 0:29:06He paid too much.

0:29:06 > 0:29:08- You paid too much, did you? - Yeah.- Oh, dear.

0:29:10 > 0:29:15Andy's sight loss was due to a degenerative eye condition

0:29:15 > 0:29:18and I wondered what particular challenges property

0:29:18 > 0:29:21development raised for him and how he overcame them.

0:29:22 > 0:29:28I can't see the properties so I have to think of it just in my mind's eye,

0:29:28 > 0:29:31how big it is and what shape the site is and things.

0:29:31 > 0:29:35So what in your mind's eye do you think this looks like?

0:29:35 > 0:29:38It's fairly flat.

0:29:39 > 0:29:43It's almost a square, slightly longer in the downhill section.

0:29:43 > 0:29:47And quite wide. It's quite a large bit of property.

0:29:47 > 0:29:48And this...

0:29:48 > 0:29:54There was a building here which wasn't there in 1955, so that's...

0:29:54 > 0:29:56- Before I born!- Right.

0:29:57 > 0:30:00It's been an empty space for a long time.

0:30:00 > 0:30:04- Right, obviously used for car parking it seems at the moment.- Yes.

0:30:04 > 0:30:07- That is an issue around here is car parking.- Right.

0:30:07 > 0:30:11You could always turn it into a car park and rent it out to the locals.

0:30:11 > 0:30:14The council, I don't think, would want that.

0:30:14 > 0:30:16Have they given you an indication then that, in principle,

0:30:16 > 0:30:19- they'd be happy for you to something here?- Yes.

0:30:19 > 0:30:23They want a residential property built here. And...

0:30:23 > 0:30:28Their only stipulations would be that we widen the pavement at the front

0:30:28 > 0:30:35and to the side, and that vehicle access from the narrow lane...

0:30:35 > 0:30:39would mean that you have to have enough room to do a three-point turn

0:30:39 > 0:30:43- inside cos they don't want cars reversing out onto the lane.- Right.

0:30:43 > 0:30:45So you'd have to go out nose first.

0:30:45 > 0:30:48So tell me the process from this point on

0:30:48 > 0:30:50as far as you're concerned.

0:30:50 > 0:30:55We have to get drawings done to put in for outline planning

0:30:55 > 0:30:58permission and then if that is agreed then

0:30:58 > 0:31:02we put in for the full planning permission. Then we build the house.

0:31:05 > 0:31:09Andy and Shintana feel that the plot is big enough to take two

0:31:09 > 0:31:13semidetached houses, but given the council's stipulation about

0:31:13 > 0:31:17off-street parking, I'm thinking it might be a tight squeeze.

0:31:17 > 0:31:19Although plans are at an early stage,

0:31:19 > 0:31:24they estimate a budget of £70-80,000 for the completion of the project.

0:31:26 > 0:31:29Do you have any idea what those type of properties would

0:31:29 > 0:31:30sell for once you've built them?

0:31:30 > 0:31:33Cos I'm just hoping that you're going to make more than 600 quid

0:31:33 > 0:31:35- on this deal.- Yeah, I think...

0:31:35 > 0:31:40- I think they'll probably sell for roundabout £70,000 each.- OK.

0:31:40 > 0:31:43- And timescale? - Hm... One year maybe?- OK.

0:31:43 > 0:31:46I think it will take longer to do the planning than it will to build

0:31:46 > 0:31:49- the houses.- Really? That's toing and froing, then.

0:31:49 > 0:31:52A bit of toing and froing as you know yourself, Martin,

0:31:52 > 0:31:55with dealing with planning authorities.

0:31:55 > 0:31:58But the council here have been very helpful.

0:31:58 > 0:32:02You're always taking a chance when you buy a property at auction

0:32:02 > 0:32:05and life is like that, isn't it?

0:32:05 > 0:32:07MARTIN LAUGHS Taking chances.

0:32:07 > 0:32:11Well, listen, congratulations. All the very best and good luck with it.

0:32:11 > 0:32:13- OK, thank you.- I look forward to seeing how you get on.- Thanks.

0:32:13 > 0:32:15Thank you.

0:32:15 > 0:32:18So, Andy with ambitious plans for the site

0:32:18 > 0:32:20and hopefully with the help of Shintana,

0:32:20 > 0:32:24when we return in a year's time, there will be two semis here.

0:32:24 > 0:32:27How will they get on? You can find out later in the show.

0:32:39 > 0:32:43Back now to the sought after area of Maida Hill in London's W9

0:32:43 > 0:32:47where earlier I looked around this two-bedroom flat that

0:32:47 > 0:32:50had a guide price of £225,000+.

0:32:52 > 0:32:55There were lots of stairs which might put people off

0:32:55 > 0:32:58and it was, well, let's say...compact.

0:32:58 > 0:33:00However, it was in good condition

0:33:00 > 0:33:03and could represent a sound investment.

0:33:06 > 0:33:08Without batting an eyelid,

0:33:08 > 0:33:12Aleksandar paid 110,000 over the guide price.

0:33:17 > 0:33:19So, Aleksandar was set on selling

0:33:19 > 0:33:21and with £10,000 budget,

0:33:21 > 0:33:24he had plans to replace the kitchen and bathroom

0:33:24 > 0:33:25as well as some flooring

0:33:25 > 0:33:28and a general refurbishment job throughout,

0:33:28 > 0:33:31all of which he was hoping to complete within two months.

0:33:35 > 0:33:38So, around one month later, we've returned to Maida Hill,

0:33:38 > 0:33:42and unfortunately, not all has gone to plan.

0:33:53 > 0:33:56Yep, apart from a bit of a paint job throughout,

0:33:56 > 0:33:58there is very little difference.

0:34:01 > 0:34:03Time for us to catch up now with Aleksandar

0:34:03 > 0:34:05to find out why the change of plan.

0:34:07 > 0:34:14My original plan was to refurbish it completely and sell it.

0:34:14 > 0:34:20But unfortunately, the market has stopped rising

0:34:20 > 0:34:25and I couldn't get much profit, so I decided to let it for a while.

0:34:39 > 0:34:41That's the thing in property -

0:34:41 > 0:34:44you have to roll with the changes in the local market conditions.

0:34:44 > 0:34:47In London, prices can be very volatile.

0:34:47 > 0:34:52One moment you think you are on top of the market, next, you're not.

0:34:53 > 0:34:57Overall, it is a good project in my opinion

0:34:57 > 0:35:00because the property is in very good location,

0:35:00 > 0:35:03walking distance from the City.

0:35:05 > 0:35:10Aleksandar ended up spending just £1,000 of his initial £10,000

0:35:10 > 0:35:13budget and is happy to rent it before he sells.

0:35:13 > 0:35:17So it will be interesting to hear if the two local estate agents

0:35:17 > 0:35:19we asked along think this is the best option.

0:35:22 > 0:35:25It's quite basic if I am being totally honest.

0:35:25 > 0:35:27But it shows clean and tidy.

0:35:27 > 0:35:30Yeah, for the size of the flat,

0:35:30 > 0:35:34I can't see any more work that would enhance it.

0:35:34 > 0:35:37At this stage, I would rent it out

0:35:37 > 0:35:41and keep it for six to 12 months,

0:35:41 > 0:35:44and then look at where the market is

0:35:44 > 0:35:47and maybe put it on the market at that time.

0:35:47 > 0:35:51Great, just what Aleksandar plans to do. But what rental could he expect?

0:35:52 > 0:35:55This property in the current market would achieve

0:35:55 > 0:35:59£1,450-1,500 per calendar month.

0:35:59 > 0:36:02I would advise putting it on the rental market

0:36:02 > 0:36:05at around £1,500 per calendar month.

0:36:05 > 0:36:08Well, that's better than I thought, yeah.

0:36:08 > 0:36:13I thought it was maximum £1,400.

0:36:14 > 0:36:17So I am quite impressed by that.

0:36:19 > 0:36:23That top valuation of £1,500 per calendar month could mean

0:36:23 > 0:36:28a yield of around 5%. What about that troublesome sales valuation?

0:36:28 > 0:36:33Has it gained any value on Aleksandar's £346,000 investment?

0:36:33 > 0:36:37And does that vindicate Aleksandar's decision to rent?

0:36:37 > 0:36:41I would advise putting it on the market for £360,000.

0:36:41 > 0:36:44This property in the current market would achieve a sale

0:36:44 > 0:36:51price of £365,000-370,000.

0:36:51 > 0:36:57That's why I haven't put it on sale because it's a bit low, yeah.

0:36:59 > 0:37:04That higher valuation of £370,000 would mean a possible

0:37:04 > 0:37:09profit of £24,000, minus the usual taxes and expenses.

0:37:09 > 0:37:12Now some of you might be thinking, "That sounds like a pretty

0:37:12 > 0:37:16"good potential profit in just four weeks with minimal work."

0:37:16 > 0:37:20But he would also have to factor in costs like agents' fees,

0:37:20 > 0:37:24so in this case, Aleksandar has his eyes on a bigger return.

0:37:24 > 0:37:27And the smooth operator that he is,

0:37:27 > 0:37:29he is prepared to play the waiting game.

0:37:36 > 0:37:40We're back in Dunfermline to visit Andy and Shintana who couldn't

0:37:40 > 0:37:45resist temptation and bought this plot of land near the town centre.

0:37:45 > 0:37:49They sealed the deal with a bid of only £17,000

0:37:49 > 0:37:51which sounds like a bargain,

0:37:51 > 0:37:54except this lot came without planning permission.

0:37:54 > 0:37:58You can never be sure what trials and tribulations await you

0:37:58 > 0:38:02once your application hits the desk of the local planning office.

0:38:04 > 0:38:07The plan was to construct two semidetached houses

0:38:07 > 0:38:09with off-street parking,

0:38:09 > 0:38:14and with a budget of £70-80,000 and a time scale of one year.

0:38:14 > 0:38:18It was full steam ahead for this development project, or so we hoped.

0:38:22 > 0:38:26This is how the site looked in November 2013

0:38:26 > 0:38:30and unfortunately, this is how it looked one year later.

0:38:34 > 0:38:37Well, there are a few more weeds, but apart from that,

0:38:37 > 0:38:41I can't see much difference at all. So, what has been going on?

0:38:41 > 0:38:45I think we better catch up with Andy to get the full story.

0:38:46 > 0:38:51We bought the property at auction a year ago.

0:38:51 > 0:38:55It took almost two months to get the finalisation because the council

0:38:55 > 0:38:59had to get permission from the Scottish Office to sell it.

0:38:59 > 0:39:04We then put in for planning, out went planning, and it has taken

0:39:04 > 0:39:07nine months, including an appeal, to get the planning for it.

0:39:09 > 0:39:12Andy predicted that dealing with planning would be a slow

0:39:12 > 0:39:14process and he was right.

0:39:14 > 0:39:18He found the experience of dealing with different departments

0:39:18 > 0:39:20terribly frustrating.

0:39:20 > 0:39:22The Estates Department were the ones who were told to

0:39:22 > 0:39:24sell off the odd bits of land.

0:39:24 > 0:39:29The planners wanted a house built on it, the Roads Department

0:39:29 > 0:39:34eventually agreed to where the entrance should be.

0:39:34 > 0:39:37But the council has rejected the planning application

0:39:37 > 0:39:40because there were more than five objections to it.

0:39:46 > 0:39:48And it might not be a surprise to hear

0:39:48 > 0:39:50the substance of those objections.

0:39:51 > 0:39:55The objections were mainly on the ground that the plot had been

0:39:55 > 0:39:58used as an unofficial car park,

0:39:58 > 0:40:02and they objected not to have their free parking available, basically.

0:40:05 > 0:40:09Andy and Shintana successfully appealed the planning decision,

0:40:09 > 0:40:13but the original plans had to be substantially modified,

0:40:13 > 0:40:17So, Andy and Shintana have decided to cut their losses

0:40:17 > 0:40:20and put the plot back on the market with outlined planning

0:40:20 > 0:40:23permission, so they have added some value.

0:40:23 > 0:40:25But exactly how much?

0:40:28 > 0:40:32We invited two local property experts along to assess the various

0:40:32 > 0:40:34options available with this site.

0:40:34 > 0:40:36The property currently has outlined planning permission

0:40:36 > 0:40:40so one can be fairly safe in the knowledge that

0:40:40 > 0:40:45permission will be granted, albeit for the type of property

0:40:45 > 0:40:49that has been suggested for this site which is a three bedroomed...

0:40:49 > 0:40:52A three-bedroom property.

0:40:52 > 0:40:55There is a shortage of plots to buy, especially suburban plots.

0:40:55 > 0:40:58We are used to rural plots, but suburban plots are hard to come by,

0:40:58 > 0:41:01so yes, there is definitely demand for a plot like this.

0:41:02 > 0:41:06On top of the purchase price of 17,000,

0:41:06 > 0:41:10Andy and Shintana have spent another £5,000 on securing outline

0:41:10 > 0:41:14planning permission, bringing their total spend to £22,000.

0:41:14 > 0:41:16How much is the land worth now?

0:41:18 > 0:41:21A plot like this with outlined planning permission,

0:41:21 > 0:41:24I would value in the region of £45-50,000.

0:41:24 > 0:41:26With outline plan permission,

0:41:26 > 0:41:31I would value this plot between £45-55,000.

0:41:31 > 0:41:35I think these figures are very encouraging and it makes me

0:41:35 > 0:41:38think it was worth all the hassle of getting the planning permission.

0:41:39 > 0:41:41I would have to agree with Andy.

0:41:41 > 0:41:46Selling the land could give him a profit of around £33,000.

0:41:46 > 0:41:49But if he did decide to go ahead with the build,

0:41:49 > 0:41:52what could a three-bedroom house sell for?

0:41:52 > 0:41:56For a three-bed property, if, for example, it were to have an

0:41:56 > 0:41:59en-suite bathroom and be finished to the required standard,

0:41:59 > 0:42:05I would be expecting a valuation of between £155-165,000.

0:42:05 > 0:42:09I would estimate a three-bed detached villa on this plot

0:42:09 > 0:42:12with parking, good specification internally,

0:42:12 > 0:42:17would be valued in the region of £155,000 to £160,000.

0:42:18 > 0:42:21So, have these figures prompted a change of heart?

0:42:22 > 0:42:26I don't think these figures would persuade us to go ahead

0:42:26 > 0:42:28and do anything now.

0:42:29 > 0:42:32I think we are ready to sell at this stage

0:42:32 > 0:42:35and give someone else the opportunity.

0:42:39 > 0:42:42Well, our two intrepid developers have battled through

0:42:42 > 0:42:45the planning process and ended up with a positive outcome.

0:42:45 > 0:42:50If they achieve a sale of £55,000, it will mean a profit,

0:42:50 > 0:42:54before tax and sales fees, of £33,000.

0:42:54 > 0:42:57That's a bit better than 600 quid.

0:43:08 > 0:43:10Well, that's it for today's show.

0:43:10 > 0:43:13We'll have more properties that sold under the hammer for you next time.

0:43:13 > 0:43:16- And we look forward to seeing you then. Goodbye.- Goodbye.