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Hello, welcome to the show. | 0:00:02 | 0:00:03 | |
Now, buying a property, be it a home or an investment, | 0:00:03 | 0:00:07 | |
could possibly be the most expensive thing you ever buy. | 0:00:07 | 0:00:09 | |
So, with thousands of pounds involved, | 0:00:09 | 0:00:12 | |
you really should try and get the best value for money. | 0:00:12 | 0:00:14 | |
Where can you do that? | 0:00:14 | 0:00:15 | |
Well, maybe by heading down to your local auction. | 0:00:15 | 0:00:18 | |
Congleton in Cheshire has a strange link with | 0:00:44 | 0:00:47 | |
a very unexpected animal, the bear. | 0:00:47 | 0:00:49 | |
Unfortunately, though, this isn't a cuddly bear story. | 0:00:49 | 0:00:52 | |
Nowadays, bear baiting in the UK would be unthinkable. | 0:00:52 | 0:00:57 | |
But this blood sport once brought in huge crowds. | 0:00:57 | 0:01:00 | |
Congleton became notorious in the 1620s, when money saved to | 0:01:00 | 0:01:04 | |
buy a Bible for the town was used instead to buy a bigger bear. | 0:01:04 | 0:01:08 | |
Hence its peculiar nickname, "Beartown". | 0:01:08 | 0:01:12 | |
There are still a few bears in town, but thankfully, better treated. | 0:01:12 | 0:01:16 | |
# I want to give you a bear hug. # | 0:01:16 | 0:01:20 | |
Well, being only 30 minutes from Manchester by train, | 0:01:22 | 0:01:26 | |
a lot of people move to Congleton for the quieter life. | 0:01:26 | 0:01:30 | |
Well, if that is what you are looking for, | 0:01:30 | 0:01:32 | |
the property I am here to see really won't suit. This is it. | 0:01:32 | 0:01:35 | |
Two bedrooms, £40,000 was the guide price. | 0:01:35 | 0:01:39 | |
But before we go in, I've got to show you this. The reason it's SO | 0:01:39 | 0:01:42 | |
bad if you're looking for peace and quiet, is because not only is | 0:01:42 | 0:01:45 | |
it on a main road, it's right by these traffic lights. | 0:01:45 | 0:01:48 | |
So you don't get the constant vroom-vroom of the cars, | 0:01:48 | 0:01:52 | |
and the lorries and whatever else, you get them stopping at the | 0:01:52 | 0:01:55 | |
lights and starting their engines up and... Argh! Nightmare. | 0:01:55 | 0:01:58 | |
OK. That's the bad bit. | 0:01:58 | 0:02:00 | |
Let's find out what it's got to offer. | 0:02:00 | 0:02:02 | |
Ooh... | 0:02:04 | 0:02:06 | |
HE SNORTS | 0:02:06 | 0:02:08 | |
That's not ideal, is it? | 0:02:08 | 0:02:10 | |
Um... Yeah, the electric cupboard, just there, behind the door. | 0:02:10 | 0:02:15 | |
To a point that you've... Well, no, not ideal. | 0:02:15 | 0:02:18 | |
So, after that slightly startling start, what have we got? | 0:02:18 | 0:02:23 | |
Lots of stuff on the walls, that's for sure. | 0:02:23 | 0:02:25 | |
But, a little corridor, front living room there. | 0:02:25 | 0:02:29 | |
It's not a bad-sized space, | 0:02:29 | 0:02:31 | |
and certainly lots of character, with those beamy things going on. | 0:02:31 | 0:02:35 | |
Another beam here for... Watch your head on that. | 0:02:35 | 0:02:37 | |
Through to a rear sitting room, there's lots of wood going on. | 0:02:37 | 0:02:42 | |
Um... | 0:02:42 | 0:02:43 | |
Hmmm. | 0:02:43 | 0:02:45 | |
-I say "wood"... -HE CHUCKLES | 0:02:45 | 0:02:48 | |
Closer inspection... That isn't, is it? | 0:02:48 | 0:02:51 | |
That's some kind of concrete-y, fibreglass-y, plaster-y faux wood. | 0:02:51 | 0:02:59 | |
The sort of thing you have in theme parks, | 0:02:59 | 0:03:02 | |
when it looks like boulders and stuff. | 0:03:02 | 0:03:03 | |
But somebody's gone to a lot of trouble to put it on. Hmmm. | 0:03:03 | 0:03:07 | |
Anyway, through there to this area here, this is the kitchen, | 0:03:07 | 0:03:11 | |
through to the bathroom. | 0:03:11 | 0:03:13 | |
I mean, for 40,000 quid, I know it's got a few quirky | 0:03:13 | 0:03:17 | |
things about it, but it's not a bad house, is it? | 0:03:17 | 0:03:20 | |
Well, top of the stairs and a real safety issue, | 0:03:28 | 0:03:31 | |
a potential disaster waiting to happen, here. | 0:03:31 | 0:03:33 | |
Because look what you've got. | 0:03:33 | 0:03:35 | |
Fair enough, top of the stairs, | 0:03:35 | 0:03:36 | |
bit of a landing area, going into that bedroom. | 0:03:36 | 0:03:39 | |
But nothing here apart from this tiny little area here, | 0:03:39 | 0:03:42 | |
when you come out of this bedroom here. | 0:03:42 | 0:03:45 | |
So the danger of basically stepping off there | 0:03:45 | 0:03:47 | |
and falling down the stairs is huge. | 0:03:47 | 0:03:49 | |
Aside from that issue, there are two good-sized bedrooms up here. | 0:03:54 | 0:03:58 | |
But shiver me timbers, more of those beams. | 0:03:58 | 0:04:02 | |
The rooms are nice and bright, | 0:04:02 | 0:04:04 | |
but I think I would want to get rid of these leaded windows and get | 0:04:04 | 0:04:08 | |
some double, maybe even triple glazing, | 0:04:08 | 0:04:10 | |
to keep the noise out. | 0:04:10 | 0:04:11 | |
The floor definitely has a slope, so a structural survey is a must. | 0:04:13 | 0:04:18 | |
Let us head outside to see | 0:04:18 | 0:04:20 | |
if that's on the straight, but hopefully not narrow. | 0:04:20 | 0:04:23 | |
Well, if you're looking for a house with lots of outside space, | 0:04:25 | 0:04:29 | |
you need to look somewhere else, because literally, all you have got | 0:04:29 | 0:04:33 | |
is that little bit of courtyard. | 0:04:33 | 0:04:36 | |
That bit there actually belongs to the next-door neighbours. | 0:04:36 | 0:04:39 | |
Now, it's not ideal, but I'm trying to find a plus point here... | 0:04:39 | 0:04:43 | |
If you were looking to rent this place out, tenants generally | 0:04:43 | 0:04:46 | |
don't like large gardens, something they have to look after, at least. | 0:04:46 | 0:04:49 | |
So what you've got here is space for your bins, | 0:04:49 | 0:04:52 | |
maybe somewhere you can put your bikes. So that's a positive. | 0:04:52 | 0:04:55 | |
# Cos I'm Mr Brightside. # | 0:04:55 | 0:04:59 | |
Perhaps a local estate agent might like to borrow my rose-tinted spectacles. | 0:05:02 | 0:05:07 | |
What does he reckon about this property, guided at £40,000? | 0:05:07 | 0:05:13 | |
You're probably looking to achieve somewhere in the region | 0:05:13 | 0:05:16 | |
between £75-£80,000. | 0:05:16 | 0:05:18 | |
If the property was placed on the rental market, I would expect to | 0:05:18 | 0:05:21 | |
achieve somewhere in the region of £400-£450 per calendar month. | 0:05:21 | 0:05:26 | |
Well, it's certainly a house with lots of character. | 0:05:27 | 0:05:30 | |
Some would call it quirky. | 0:05:30 | 0:05:32 | |
Not an ideal location, but remember that guide price, £40,000. | 0:05:32 | 0:05:37 | |
I actually think it's a really good one to go for. | 0:05:37 | 0:05:39 | |
Let's see who agreed, when it went under the hammer. | 0:05:39 | 0:05:42 | |
It's a two-bedroomed, end-terraced house. | 0:05:42 | 0:05:44 | |
I have a proxy bid on this of £28,000. | 0:05:44 | 0:05:48 | |
So bid with me at £28,000. | 0:05:48 | 0:05:51 | |
30 in the room. £30,000 in the room. At £30,000. 31 with me. 32. | 0:05:51 | 0:05:58 | |
33 with me. 34. At 34, I am out. | 0:05:58 | 0:06:02 | |
At £34,000. 34,500, 35, 35. | 0:06:02 | 0:06:07 | |
Another 500? | 0:06:09 | 0:06:10 | |
No? At 35,000, right in the middle, at £35,000. | 0:06:12 | 0:06:16 | |
Right at the back now, 35,500. | 0:06:16 | 0:06:19 | |
36. 36. 36,500. | 0:06:20 | 0:06:25 | |
37. No? At 36,500 now, by the light, £36,500. | 0:06:25 | 0:06:31 | |
37 anywhere else? | 0:06:31 | 0:06:33 | |
If not, 36,500 once, 36,500 twice, | 0:06:34 | 0:06:39 | |
third and final time, 36,500... | 0:06:39 | 0:06:42 | |
-GAVEL BANGS -Your house, well done. | 0:06:42 | 0:06:44 | |
Julia made that successful bid of £36,500. | 0:06:46 | 0:06:51 | |
That's £3,500 below the guide price. | 0:06:51 | 0:06:54 | |
Julia and her husband Mike are relative novices | 0:06:54 | 0:06:57 | |
when it comes to property development, | 0:06:57 | 0:06:59 | |
with two previous developments their only experience. | 0:06:59 | 0:07:02 | |
However, they're keen to get going with their latest purchase, | 0:07:02 | 0:07:05 | |
and I met full-time mum, Julia, back at the property | 0:07:05 | 0:07:08 | |
to find out their plans. | 0:07:08 | 0:07:10 | |
-Julia, great to meet you. -And you. -Congratulations! -Thank you. | 0:07:10 | 0:07:14 | |
-What an interesting little place this is. -Mmm. | 0:07:14 | 0:07:17 | |
Tell me why you wanted to buy it. | 0:07:17 | 0:07:19 | |
Mainly the price. | 0:07:19 | 0:07:20 | |
It was the right price. | 0:07:20 | 0:07:22 | |
And I know this area a little bit, | 0:07:22 | 0:07:25 | |
so I knew that the price was a good price for this area, really. | 0:07:25 | 0:07:29 | |
What are you planning to do to it? | 0:07:29 | 0:07:31 | |
Most things really, it needs the damp sorting out. | 0:07:31 | 0:07:36 | |
It needs replastering, it needs rewiring, | 0:07:36 | 0:07:39 | |
it's got no central heating, new windows. | 0:07:39 | 0:07:42 | |
-And kitchen... -Kitchen, bathroom, yeah, yeah. | 0:07:42 | 0:07:44 | |
All that needs ripping out and starting again. | 0:07:44 | 0:07:47 | |
Julia's certainly made a great assessment of the tasks ahead, | 0:07:47 | 0:07:51 | |
and I'm delighted to say, has in her sights one of the main | 0:07:51 | 0:07:54 | |
difficulties I can see about the house. | 0:07:54 | 0:07:56 | |
That staircase. | 0:07:56 | 0:07:58 | |
I'll need to get somebody in and have a look. | 0:08:00 | 0:08:02 | |
But if we can try and rearrange it, maybe bring it further out this | 0:08:02 | 0:08:05 | |
way, so that we can get a proper landing at the top. | 0:08:05 | 0:08:08 | |
-And what about all of this...wood, whatever it is? -Yeah. | 0:08:08 | 0:08:12 | |
It needs to go, really, doesn't it? | 0:08:12 | 0:08:14 | |
Well...somebody's gone to such a lot of trouble to put it in. | 0:08:14 | 0:08:18 | |
-It's a shame to say, "Yes", but...yes! -It does, it needs to go. | 0:08:18 | 0:08:22 | |
-I think it takes up a lot of space, as well. -Yeah. | 0:08:22 | 0:08:24 | |
Get rid of that, open it up a bit. | 0:08:24 | 0:08:26 | |
The one big negative, if there are any, is the location. | 0:08:26 | 0:08:29 | |
Good and bad, good in terms of what it's close to, | 0:08:29 | 0:08:32 | |
-but right on this junction, you can hear the traffic, it's... -Yeah. | 0:08:32 | 0:08:36 | |
-This isn't even peak time, is it? -No. | 0:08:36 | 0:08:39 | |
-Can't do anything about that though, apart from put in triple glazing. -New windows, yeah. | 0:08:39 | 0:08:43 | |
I think we'll try and do the best we can with the windows. | 0:08:43 | 0:08:45 | |
And, like you say, other than that... I think, you know, | 0:08:45 | 0:08:48 | |
I've lived on a busy road, and you get used to it. | 0:08:48 | 0:08:51 | |
So I think, as a rental property, | 0:08:51 | 0:08:53 | |
I don't think that will be too much of an issue. | 0:08:53 | 0:08:55 | |
-And that's the plan, is it? To rent it out? -Yes. Yeah, it is. | 0:08:55 | 0:08:59 | |
Well, before Julia can look for any renters, | 0:08:59 | 0:09:02 | |
she's got a long list of pretty big jobs to get done. | 0:09:02 | 0:09:05 | |
Although she does have a fairly healthy budget of around £23,000, | 0:09:05 | 0:09:09 | |
and a timescale of three to four months to get this dated | 0:09:09 | 0:09:13 | |
and wonky house ready for the rental market. | 0:09:13 | 0:09:18 | |
So, how involved are you going to be with it? | 0:09:18 | 0:09:22 | |
I will be here most days, to make sure that everything's going | 0:09:22 | 0:09:26 | |
-according to plan. -Telling other people what to do? -Exactly. | 0:09:26 | 0:09:30 | |
-HE LAUGHS -Yes. -Well, congratulations. -Thank you. | 0:09:30 | 0:09:33 | |
-I look forward to seeing how you get on. -Thank you, very much. | 0:09:33 | 0:09:37 | |
So it looks like the fake wood is destined to go, in Julia's | 0:09:39 | 0:09:43 | |
renovation of this little property in Congleton. | 0:09:43 | 0:09:46 | |
It's one of those ones that is going to be dramatically | 0:09:46 | 0:09:49 | |
different when we return. | 0:09:49 | 0:09:50 | |
Can't wait to see what it looks like. | 0:09:50 | 0:09:52 | |
You can find out, later in the show. | 0:09:52 | 0:09:54 | |
And talking of dramatically different, | 0:09:57 | 0:09:59 | |
it's hard to believe that Willesden, here in north London, | 0:09:59 | 0:10:02 | |
was once a rural village with a population of less than 20,000. | 0:10:02 | 0:10:06 | |
In the late 1800s, the population grew to 140,000 | 0:10:06 | 0:10:11 | |
in just 25 years, thanks to the arrival of the railway. | 0:10:11 | 0:10:15 | |
# Guess I will spend my life in railway stations. # | 0:10:15 | 0:10:22 | |
The property I'm here to see today is part of these Victorian terraces, | 0:10:22 | 0:10:27 | |
probably built around the time of the railway station. | 0:10:27 | 0:10:30 | |
Well, it's in here, it's on the first floor, it's a one-bedder | 0:10:30 | 0:10:33 | |
and it has a guide price of £260,000-plus. | 0:10:33 | 0:10:38 | |
Let's see what those good old Victorians built. | 0:10:38 | 0:10:41 | |
First things first, in through the front door | 0:10:45 | 0:10:48 | |
and a flight of stairs to negotiate. | 0:10:48 | 0:10:50 | |
Now, I'm not going to let that put me off, although the decor might. | 0:10:50 | 0:10:54 | |
So a lot in this flat needs doing. | 0:10:54 | 0:10:56 | |
But only decoration and carpets and painting, | 0:10:56 | 0:10:59 | |
lots of egg-yolk yellows everywhere, and oranges. | 0:10:59 | 0:11:03 | |
Bathroom and through to the backroom, | 0:11:03 | 0:11:06 | |
painted in a very interesting sorbet tangerine colour. | 0:11:06 | 0:11:10 | |
But this is what I can't believe. | 0:11:10 | 0:11:12 | |
Look how close you are to the tube station! Look! | 0:11:12 | 0:11:16 | |
They literally are in your back garden. | 0:11:16 | 0:11:19 | |
Now, let's do a sound test. | 0:11:19 | 0:11:21 | |
FAINT SOUND OF TUBE TRAIN | 0:11:21 | 0:11:23 | |
(Doesn't make that much difference!) | 0:11:23 | 0:11:25 | |
So, could it be a positive, could it be a negative? I'm not quite sure. | 0:11:25 | 0:11:28 | |
It depends how quickly you need to get into town. | 0:11:28 | 0:11:31 | |
# If it makes you happy | 0:11:31 | 0:11:35 | |
# It can't be that bad. # | 0:11:36 | 0:11:40 | |
It's almost like this flat has got a pulse. | 0:11:41 | 0:11:43 | |
Because, when the trains go, the flat just slightly moves. | 0:11:43 | 0:11:48 | |
You've got the kitchen just here, which is a great size. | 0:11:48 | 0:11:51 | |
There's a table in there, so you can sit down and eat, | 0:11:51 | 0:11:53 | |
and through here, well, this is the front of the property. | 0:11:53 | 0:11:56 | |
This is currently laid out as the bedroom. | 0:11:56 | 0:12:00 | |
Now, I am thinking it would be served so much better | 0:12:00 | 0:12:03 | |
as a living room, a cosy lounge... | 0:12:03 | 0:12:06 | |
Why do you think this is the bedroom? | 0:12:06 | 0:12:08 | |
Do you think it's too noisy at the back? | 0:12:08 | 0:12:11 | |
If you slept at the back, you could hear the trains? What do you think? | 0:12:11 | 0:12:14 | |
I don't know, I'm going to leave that one with you. | 0:12:14 | 0:12:17 | |
But I think if this were mine, actually, I might swap it over. | 0:12:17 | 0:12:20 | |
Let's see what a local estate agent makes of this flat, | 0:12:23 | 0:12:25 | |
guided at 260,000. | 0:12:25 | 0:12:27 | |
-# People all over the world -Everybody | 0:12:28 | 0:12:31 | |
-# -Join hands -Love train | 0:12:31 | 0:12:33 | |
# Start a love train, love train. # | 0:12:33 | 0:12:36 | |
So, if you were to keep this property laid out as it is, | 0:12:36 | 0:12:39 | |
but in good condition, | 0:12:39 | 0:12:40 | |
you'd be looking at around £350,000 for sales and you'd be looking | 0:12:40 | 0:12:43 | |
at around £1,300 per calendar month for the lettings market. | 0:12:43 | 0:12:47 | |
If you were to convert this into a two-bedroom property, it'd be | 0:12:47 | 0:12:49 | |
two double bedrooms, and you'd be looking at £400,000 for sales. | 0:12:49 | 0:12:53 | |
And you'd be looking at around £1,500 per calendar month | 0:12:53 | 0:12:56 | |
for the lettings market. | 0:12:56 | 0:12:58 | |
Well, this little flat over a few levels certainly has character | 0:12:58 | 0:13:01 | |
and lots of exciting options. | 0:13:01 | 0:13:03 | |
You could do a simple refurb, or you could think about | 0:13:03 | 0:13:06 | |
a complete overhaul. But is it too near to that train station? | 0:13:06 | 0:13:10 | |
Or will people absolutely love that? | 0:13:10 | 0:13:13 | |
Let's see what happens when this property went under the hammer. | 0:13:13 | 0:13:17 | |
A one-bed, first-floor flat. | 0:13:17 | 0:13:19 | |
250. Thank you, 250. | 0:13:19 | 0:13:22 | |
255 anywhere? | 0:13:22 | 0:13:24 | |
We've got 250, standing up at the back. Anyone else? | 0:13:24 | 0:13:28 | |
It is with you... Ah. 255, thought you had it. 260. | 0:13:28 | 0:13:33 | |
'Bidding started a little sluggish, | 0:13:33 | 0:13:35 | |
'but it soon became a nerve-jangling battle. | 0:13:35 | 0:13:38 | |
'We rejoin the bidding at 275,000.' | 0:13:38 | 0:13:42 | |
275. | 0:13:42 | 0:13:45 | |
276, 277, 278, 279, 280, 281, | 0:13:45 | 0:13:51 | |
282, 283, 284, 285, | 0:13:51 | 0:13:55 | |
286... It might be...? One more go, yeah? | 0:13:55 | 0:14:01 | |
286, 287? | 0:14:01 | 0:14:03 | |
287, 288, 289, 290... | 0:14:04 | 0:14:09 | |
Must go one... 290... They are struggling a bit. | 0:14:09 | 0:14:13 | |
290, well done. 291. | 0:14:13 | 0:14:15 | |
291? 291. | 0:14:16 | 0:14:19 | |
Daren't ask him now! 292, right, I got two! | 0:14:19 | 0:14:22 | |
291, have a think. | 0:14:22 | 0:14:25 | |
292, elsewhere? | 0:14:25 | 0:14:27 | |
Got 291 standing up. | 0:14:27 | 0:14:29 | |
First time, second time, third and last time, if you're all done... | 0:14:29 | 0:14:33 | |
Sold, 291. | 0:14:35 | 0:14:37 | |
Raj was the successful bidder. | 0:14:37 | 0:14:39 | |
He and his business partner finally purchasing the property for 291,000. | 0:14:39 | 0:14:44 | |
And he's definitely in the know when it comes to property. | 0:14:44 | 0:14:47 | |
Not only is Raj local, he has another ace up his sleeve. | 0:14:47 | 0:14:52 | |
I met him to find out how he knows all the right steps. | 0:14:52 | 0:14:55 | |
# He's Mr Know-It-All... # | 0:14:56 | 0:15:00 | |
-Raj, congratulations. -Thank you very much indeed. | 0:15:00 | 0:15:03 | |
-So, here you have a one-bedroom flat... -That's right. That's right. | 0:15:03 | 0:15:06 | |
-..with a tube station... -Mm-hmm. -..right there. I mean, is that handy? | 0:15:06 | 0:15:09 | |
Is that going to put buyers off? What do you think? | 0:15:09 | 0:15:12 | |
I think... It may put some buyers off | 0:15:12 | 0:15:14 | |
but the real charm of this property | 0:15:14 | 0:15:16 | |
is actually the location of the station. | 0:15:16 | 0:15:18 | |
It's about ten minutes into central London to get to Bond Street | 0:15:18 | 0:15:21 | |
and about 15-20 minutes into Canary Wharf, so that is actually | 0:15:21 | 0:15:25 | |
one of the charms and the reason we actually chose this location. | 0:15:25 | 0:15:28 | |
So, tell me, what is your knowledge of property? | 0:15:28 | 0:15:30 | |
Well, by profession I am actually a property solicitor | 0:15:30 | 0:15:33 | |
and that's what actually inspired me | 0:15:33 | 0:15:35 | |
to actually try a bit of dab hand at property developing. | 0:15:35 | 0:15:38 | |
I used to see a lot of clients make a bob or two on the property game | 0:15:38 | 0:15:42 | |
after lots of hard work and perseverance. | 0:15:42 | 0:15:44 | |
-I got my first property about four or five years ago... -OK. | 0:15:44 | 0:15:47 | |
..and I've done a few projects myself and this one is together with | 0:15:47 | 0:15:50 | |
my business partner and I've done a handful with him as well. | 0:15:50 | 0:15:53 | |
So, what advantage do you have over somebody else | 0:15:53 | 0:15:57 | |
that may just go to a property auction? | 0:15:57 | 0:15:58 | |
I think I knew the legalities of it. | 0:15:58 | 0:16:00 | |
I know, on your show, Martin and yourself are always telling people to look at the legal packs, | 0:16:00 | 0:16:04 | |
so whenever the legal packs are there for any property | 0:16:04 | 0:16:07 | |
myself or my business partner are interested in, | 0:16:07 | 0:16:09 | |
I scrutinise it with a fine tooth comb, | 0:16:09 | 0:16:10 | |
make sure there's no sort of hidden extras or hidden muckies | 0:16:10 | 0:16:14 | |
or special conditions which could be overly onerous. | 0:16:14 | 0:16:16 | |
# We laid down the law | 0:16:16 | 0:16:18 | |
# So what you need me for...? # | 0:16:18 | 0:16:21 | |
See, it's not just Martin and I that swear by the legal pack | 0:16:21 | 0:16:25 | |
and Raj is ready to rewrite the laws of this flat's layout. | 0:16:25 | 0:16:28 | |
So, what we're looking to do is we're looking to reconfigure the property. | 0:16:29 | 0:16:33 | |
At the moment, it's a one-bedroom | 0:16:33 | 0:16:34 | |
so what we are going to be doing is taking the wall down | 0:16:34 | 0:16:36 | |
between the current bedroom and the actual kitchen | 0:16:36 | 0:16:40 | |
and relocating the kitchen into an open-plan area, | 0:16:40 | 0:16:44 | |
and the front bedroom will actually become the open-plan living area | 0:16:44 | 0:16:47 | |
with the kitchen combined. | 0:16:47 | 0:16:49 | |
So, you're looking at creating a lounge/kitchen area, one space? | 0:16:49 | 0:16:53 | |
-That's right. -And making that tiny little bit left over... -Yes. -..a bedroom? | 0:16:53 | 0:16:57 | |
-It can work. It has worked on previous projects... -Oh, Raj! | 0:16:57 | 0:17:00 | |
It can actually work! | 0:17:00 | 0:17:02 | |
That's going to be a shoebox but I know we're in London | 0:17:02 | 0:17:05 | |
and we are literally a stone's throw from the tube | 0:17:05 | 0:17:07 | |
but that is going to be a very small room. | 0:17:07 | 0:17:09 | |
In all honesty, now, come on, this is your game, | 0:17:09 | 0:17:11 | |
how much value can you add by doing that? | 0:17:11 | 0:17:13 | |
We would hope a little bit. | 0:17:13 | 0:17:16 | |
We've spoken to a few agents and knowing from some of the projects | 0:17:16 | 0:17:19 | |
we've done in the past as well, you are right, we are in London. | 0:17:19 | 0:17:22 | |
Even that small second bedroom where you can just about squeeze that second bedroom in, | 0:17:22 | 0:17:26 | |
it does actually make it worth doing. | 0:17:26 | 0:17:30 | |
Could Raj be right? | 0:17:31 | 0:17:33 | |
His tangerine dream might give you nightmares if you live anywhere else. | 0:17:33 | 0:17:37 | |
London? He knows his stuff. | 0:17:37 | 0:17:39 | |
He's given himself two and a half months to sort this flat out. | 0:17:39 | 0:17:43 | |
-So, come on, how much are you going to spend here? -We've got a budget of £15-20,000. | 0:17:43 | 0:17:48 | |
I think from previous experience that's a fair estimate | 0:17:48 | 0:17:51 | |
but obviously we always have a contingency. | 0:17:51 | 0:17:53 | |
-You never know if something...you know...some uglies may crop... -Oh, you're so sensible. | 0:17:53 | 0:17:57 | |
HE LAUGHS If there's any man that's going to do it right, it's going to be you! | 0:17:57 | 0:18:00 | |
-Check this, Raj. -I really hope so, Lucy. | 0:18:00 | 0:18:02 | |
Are you that strict? Are you that stringent with everything you do? | 0:18:02 | 0:18:05 | |
It's got to be by the book? | 0:18:05 | 0:18:07 | |
I think sometimes but sometimes I get lazy. | 0:18:07 | 0:18:09 | |
I know there can be delays and sometimes builders don't turn up. | 0:18:09 | 0:18:12 | |
Sometimes materials are not available | 0:18:12 | 0:18:13 | |
-and sometimes I can't be bothered to get out of bed as well! -And I bet that bugs you like crazy | 0:18:13 | 0:18:17 | |
-because I know that you like everything just so. -Yeah. | 0:18:17 | 0:18:20 | |
Well, I just hope you do end up making a bob or two. | 0:18:20 | 0:18:22 | |
-Thank you very much indeed. -Cos that's what it's all about for you. -Absolutely. -Well done. | 0:18:22 | 0:18:26 | |
-Congratulations. -Thank you very much. -Thank you so much. | 0:18:26 | 0:18:29 | |
So, property solicitor turned property developer Raj | 0:18:30 | 0:18:33 | |
has his latest property for his portfolio, | 0:18:33 | 0:18:36 | |
and if it all goes to plan, | 0:18:36 | 0:18:38 | |
then he is potentially looking at a nice tidy profit. | 0:18:38 | 0:18:42 | |
But, does he really think bedroom number two is worthwhile? | 0:18:42 | 0:18:46 | |
Taking that wall down, is it really going to add that much value? | 0:18:46 | 0:18:50 | |
You can find out if Raj does make his bob or two | 0:18:51 | 0:18:54 | |
later on in the programme. | 0:18:54 | 0:18:55 | |
There's big plans to sort out this ambulance station's ills. | 0:18:57 | 0:19:01 | |
There's going to be an extension | 0:19:01 | 0:19:03 | |
and eventually then be a swimming pool out on the site. | 0:19:03 | 0:19:06 | |
And has our property solicitor caught the development bug? | 0:19:09 | 0:19:12 | |
We'll definitely be hitting the auction room again. | 0:19:12 | 0:19:15 | |
Hope to buy sooner rather than later. | 0:19:15 | 0:19:17 | |
Time to return now to our two-bedroom end-terraced house | 0:19:20 | 0:19:24 | |
with a guide price of £40,000, | 0:19:24 | 0:19:27 | |
situated in the Cheshire town of Congleton. | 0:19:27 | 0:19:29 | |
# Do, do, do, come on and do the conga | 0:19:31 | 0:19:34 | |
# Do, do, do, it's conga night for sure... # | 0:19:34 | 0:19:38 | |
No, no, no, no. Congle-TON. | 0:19:38 | 0:19:42 | |
Oh, never mind. | 0:19:42 | 0:19:43 | |
It was a lot of house on offer for a guide price of 40,000. | 0:19:45 | 0:19:49 | |
And it was even better value for Julia, the successful bidder, | 0:19:52 | 0:19:55 | |
as she paid just £36,500 at the auction. | 0:19:55 | 0:20:00 | |
She was looking to let out the property and knew what needed doing. | 0:20:00 | 0:20:03 | |
Six months have passed and we've returned to Congleton to see if | 0:20:07 | 0:20:11 | |
Julia's managed to turn this house from fake wood into really good. | 0:20:11 | 0:20:16 | |
# All the boys and the girls | 0:20:19 | 0:20:21 | |
# They got it going on | 0:20:21 | 0:20:23 | |
# And when the beat kicks in | 0:20:23 | 0:20:25 | |
# You feel it in your bones | 0:20:25 | 0:20:27 | |
# And when the basement cracks | 0:20:27 | 0:20:29 | |
# And the needle drops | 0:20:29 | 0:20:31 | |
# You can't turn back | 0:20:31 | 0:20:32 | |
# And you just can't stop | 0:20:32 | 0:20:34 | |
# All the boys and the girls... # | 0:20:34 | 0:20:37 | |
I think we can safely say, | 0:20:38 | 0:20:40 | |
Julia's dragged this oddity back into the 21st century. | 0:20:40 | 0:20:44 | |
With new windows throughout, that traffic noise is much more tolerable | 0:20:44 | 0:20:48 | |
and those stairs aren't scaring me any more which is always nice. | 0:20:48 | 0:20:53 | |
Julia's even put some wood back in. | 0:20:53 | 0:20:55 | |
Real this time. | 0:20:55 | 0:20:57 | |
The main things that we've changed since you were here last | 0:20:57 | 0:21:01 | |
is the windows were replaced. | 0:21:01 | 0:21:02 | |
We've taken most of the walls back to brickwork | 0:21:02 | 0:21:05 | |
and re-plastered, rewired. Erm... | 0:21:05 | 0:21:09 | |
New kitchen, new bathroom, new floors upstairs, new flat roof. | 0:21:09 | 0:21:13 | |
Most things that could be done have been done. | 0:21:14 | 0:21:16 | |
And the house looks all the better for it. | 0:21:18 | 0:21:20 | |
It's not just been a redecoration either. | 0:21:20 | 0:21:23 | |
Julia's also reconfigured some of the rooms | 0:21:23 | 0:21:25 | |
to make better use of the space. | 0:21:25 | 0:21:27 | |
OK, so this originally was the dining area. | 0:21:30 | 0:21:33 | |
It had quite a large fireplace in the corner which we removed | 0:21:33 | 0:21:37 | |
which has opened it up nicely and given us quite a bit more space. | 0:21:37 | 0:21:41 | |
So, we decided to put the kitchen mainly in this bit. | 0:21:41 | 0:21:44 | |
Previously it was just in the far side which just wasn't enough | 0:21:44 | 0:21:46 | |
space to get everything in, really. | 0:21:46 | 0:21:48 | |
So it's a nice light, airy space which we are really pleased with. | 0:21:48 | 0:21:52 | |
The house looks so much more spacious | 0:21:52 | 0:21:54 | |
but it's not just cosmetic changes Julia's made. | 0:21:54 | 0:21:57 | |
Along with new windows and a new flat roof, | 0:21:57 | 0:22:00 | |
there was a sloping floor upstairs that needed sorting. | 0:22:00 | 0:22:03 | |
OK, so in here, originally the floor was quite sloping | 0:22:06 | 0:22:10 | |
so we pulled up the floorboards | 0:22:10 | 0:22:12 | |
and realised that the floor throughout upstairs | 0:22:12 | 0:22:14 | |
was needing to be replaced cos the joists were quite rotten. | 0:22:14 | 0:22:17 | |
So we've done that and that's sorted the problem out. | 0:22:17 | 0:22:20 | |
We also changed the position of the door | 0:22:20 | 0:22:22 | |
because originally the door was going out onto the staircase, | 0:22:22 | 0:22:25 | |
which wasn't very safe, | 0:22:25 | 0:22:26 | |
so we made a little landing by using some of the space | 0:22:26 | 0:22:29 | |
from the main bedroom, which has worked a lot better, | 0:22:29 | 0:22:32 | |
so that's great. | 0:22:32 | 0:22:35 | |
No more wonky floor and dangerous staircase, just two solid bedrooms. | 0:22:35 | 0:22:39 | |
But building work can be expensive, | 0:22:39 | 0:22:41 | |
so I wonder how that ate into Julia's budget. | 0:22:41 | 0:22:45 | |
She bought the property for £36,500 and had a budget of 23,000. | 0:22:45 | 0:22:50 | |
How did she get on? | 0:22:50 | 0:22:51 | |
It's safe to say that we've totally gone over that with everything. | 0:22:53 | 0:22:56 | |
All the estimations were under, really. | 0:22:56 | 0:23:00 | |
So we've probably come in at about 40,000 all-in. | 0:23:00 | 0:23:05 | |
Ouch. That's almost double her original budget. | 0:23:06 | 0:23:09 | |
Those jobs clearly needed doing | 0:23:09 | 0:23:11 | |
but will Julia be able to get her money back? | 0:23:11 | 0:23:14 | |
We've asked along two local property experts to get their opinion. | 0:23:14 | 0:23:17 | |
If I was to place this property on to the resale market | 0:23:19 | 0:23:22 | |
I would anticipate | 0:23:22 | 0:23:23 | |
to achieve a price somewhere in the region of £80,000 - £85,000. | 0:23:23 | 0:23:27 | |
In my opinion, I would value this property at a figure | 0:23:27 | 0:23:30 | |
of between £80,000 and £85,000. | 0:23:30 | 0:23:32 | |
That top valuation would give Julia a potential profit | 0:23:33 | 0:23:36 | |
of £8,500 before taxes and fees, | 0:23:36 | 0:23:39 | |
but Julia always intended to rent, so how do those figures stack up? | 0:23:39 | 0:23:44 | |
If I was to place this property on to the rental market, | 0:23:45 | 0:23:47 | |
I would hope to achieve somewhere in the region | 0:23:47 | 0:23:49 | |
of £400 - £450 per calendar month. | 0:23:49 | 0:23:52 | |
The rental market is particularly strong in this area. | 0:23:52 | 0:23:55 | |
I would expect this to achieve a figure of £425 per calendar month. | 0:23:55 | 0:23:59 | |
I think that's fine, yeah. | 0:23:59 | 0:24:01 | |
I suppose 425 was the figure that I was thinking of | 0:24:01 | 0:24:04 | |
so we're about there, aren't we? So that's fine, yeah. | 0:24:04 | 0:24:07 | |
Yes, we certainly are there. | 0:24:08 | 0:24:10 | |
That would give her just over 6.5% yield. | 0:24:10 | 0:24:13 | |
Pretty good, even though for Julia it's not all about the money. | 0:24:13 | 0:24:17 | |
I enjoy buying houses that are run-down | 0:24:19 | 0:24:21 | |
and seeing the potential in them | 0:24:21 | 0:24:23 | |
and then seeing them turned round and improved. | 0:24:23 | 0:24:25 | |
So definitely pleased that I went to the auction and definitely pleased | 0:24:25 | 0:24:28 | |
that I was the one that got this house. So, yeah. | 0:24:28 | 0:24:31 | |
I'm in West Glamorgan in the beautiful Welsh Valleys. | 0:24:40 | 0:24:44 | |
Over one million pounds has been spent on cycleways and paths | 0:24:44 | 0:24:48 | |
to open up this region to the tourist trade. | 0:24:48 | 0:24:51 | |
It's hoped that tourism will revive the fortunes of places | 0:24:51 | 0:24:55 | |
like the village of Cymmer, where unemployment rates are quite high | 0:24:55 | 0:24:58 | |
and where local industries are few. | 0:24:58 | 0:25:00 | |
Well, today I'm here to see something a little bit unusual. | 0:25:02 | 0:25:05 | |
It's not a shop, it's not a garage, it's not a commercial premises | 0:25:05 | 0:25:09 | |
or a delivery depot. | 0:25:09 | 0:25:11 | |
It's actually this. Can you guess what it is? | 0:25:11 | 0:25:14 | |
This little curiosity used to be the garage for the local ambulances. | 0:25:15 | 0:25:19 | |
It's seen better days with its boarded-up frontage | 0:25:19 | 0:25:22 | |
and broken windows. | 0:25:22 | 0:25:24 | |
But with a guide price of just £10,000, | 0:25:24 | 0:25:27 | |
I think it's worth having a look inside. | 0:25:27 | 0:25:29 | |
Well, the main part of the building, not surprisingly, is this area here, | 0:25:32 | 0:25:36 | |
which is, I imagine, where the ambulances were actually stored. | 0:25:36 | 0:25:41 | |
And a good space. | 0:25:41 | 0:25:43 | |
Big, solid floor and you've got these large sliding doors, | 0:25:43 | 0:25:47 | |
which open up the whole of the front, | 0:25:47 | 0:25:50 | |
which straight away makes me think great potential for somebody who | 0:25:50 | 0:25:53 | |
needs that kind of access, such as maybe a builder's store | 0:25:53 | 0:25:57 | |
or a garage or an MOT centre that really needs to be able | 0:25:57 | 0:26:00 | |
to get in and out very easily. | 0:26:00 | 0:26:02 | |
Yeah. Good start. | 0:26:02 | 0:26:05 | |
Let's see what else there is. | 0:26:05 | 0:26:06 | |
Taking the stairs up to the first floor, | 0:26:06 | 0:26:09 | |
everything feels very institutional but it's solid enough. | 0:26:09 | 0:26:12 | |
Well, up here, bit of a disappointment | 0:26:14 | 0:26:16 | |
cos the space is only about half | 0:26:16 | 0:26:17 | |
what it is downstairs, primarily this little office area here, | 0:26:17 | 0:26:21 | |
little kitchen and a washing area, shower, toilet etc, there. | 0:26:21 | 0:26:25 | |
But maybe there's more. | 0:26:25 | 0:26:27 | |
Of course there's more. | 0:26:29 | 0:26:31 | |
Quite a bit more in the form of this land at the side of the building. | 0:26:31 | 0:26:35 | |
"Ideal for developing," I hear you cry! | 0:26:35 | 0:26:37 | |
Well...not quite. | 0:26:37 | 0:26:41 | |
When it comes to the planning classification of this building, | 0:26:41 | 0:26:43 | |
it's actually called "sui generis", which is Latin for, | 0:26:43 | 0:26:47 | |
"of its own kind" or "unique". | 0:26:47 | 0:26:49 | |
In other words, it's only got planning to be exactly what it is, | 0:26:49 | 0:26:52 | |
which is an ambulance station. | 0:26:52 | 0:26:54 | |
# Mr Blue Sky | 0:26:54 | 0:26:55 | |
# Please tell us why | 0:26:55 | 0:26:57 | |
-# You had to hide away for so long -So long | 0:26:57 | 0:27:01 | |
# Where did we go wrong? # | 0:27:01 | 0:27:03 | |
It has a guide of just £10,000 but I think it's going to take | 0:27:03 | 0:27:07 | |
some blue sky thinking to really make the most of this place. | 0:27:07 | 0:27:10 | |
We asked the agent from the auction house which sold it | 0:27:10 | 0:27:13 | |
whether or not there was any chance of turning this into an investment. | 0:27:13 | 0:27:17 | |
I think a local builder or mechanic or somebody looking to store | 0:27:17 | 0:27:22 | |
materials would probably pay £150 - £200 per calendar month. | 0:27:22 | 0:27:27 | |
Well, at first glance an interesting opportunity, this one, | 0:27:29 | 0:27:32 | |
but once you delve a little bit deeper, | 0:27:32 | 0:27:34 | |
the options do seem to be a little bit limited. | 0:27:34 | 0:27:36 | |
I don't think it's financially viable to knock it down and build something in its place | 0:27:36 | 0:27:40 | |
but if the right person needed this kind of space, | 0:27:40 | 0:27:43 | |
well, it could be absolutely spot-on for them. | 0:27:43 | 0:27:47 | |
Let's find out who it was who decided to resuscitate | 0:27:47 | 0:27:50 | |
this old ambulance station by going to the auction. | 0:27:50 | 0:27:53 | |
This is on behalf of the Welsh Ambulance Services Trust. | 0:27:54 | 0:27:57 | |
I've got a proxy bid here, ladies and gentlemen. | 0:27:57 | 0:27:59 | |
I'm going to go straight in at the reserve at 12,500. | 0:27:59 | 0:28:01 | |
12,500 is bid. Any advance? | 0:28:01 | 0:28:04 | |
13, thank you. 13,000 is bid. Proxy's out. 13,500. | 0:28:04 | 0:28:08 | |
13,500. 14, 14,500, | 0:28:08 | 0:28:11 | |
14,500, 15, 15,500, | 0:28:11 | 0:28:13 | |
16, 16,500, | 0:28:13 | 0:28:15 | |
17, 17... Right, 17 is on you, sir. At 17,000. | 0:28:15 | 0:28:19 | |
17,000 is bid. Any advance? | 0:28:19 | 0:28:23 | |
17,500, 18, 18,500, | 0:28:23 | 0:28:25 | |
19, 19,500, 20. | 0:28:25 | 0:28:28 | |
20. 20,000 is bid. | 0:28:28 | 0:28:29 | |
20,500, 21, | 0:28:29 | 0:28:31 | |
21,500. 21,500 seated here. | 0:28:31 | 0:28:35 | |
21,500 is bid. | 0:28:35 | 0:28:37 | |
21,500. Any advance on 21,500? | 0:28:37 | 0:28:40 | |
22, thank you. 22... Half. | 0:28:40 | 0:28:43 | |
22,500. Looking for 23, sir. I've got 22,500. 22,500 it is then. | 0:28:43 | 0:28:47 | |
I'm going to sell it at 22,500 if I don't see anyone quickly. | 0:28:47 | 0:28:50 | |
22,500, be quick! 22,500... | 0:28:50 | 0:28:54 | |
-GAVEL BANGS -Yours, sir, 22,500. | 0:28:54 | 0:28:56 | |
The cheerful bidder delighted | 0:28:56 | 0:28:58 | |
at getting the former ambulance hall for £22,500 was Peter. | 0:28:58 | 0:29:03 | |
Occupational health nurse Peter was at the auction with his son, Simon. | 0:29:05 | 0:29:10 | |
We caught up with them to hear what made them | 0:29:10 | 0:29:12 | |
so excited about this particular property. | 0:29:12 | 0:29:16 | |
Peter, Simon, lovely to meet you both. Congratulations. | 0:29:16 | 0:29:19 | |
Tell me why you wanted to buy this place. | 0:29:19 | 0:29:21 | |
Basically I want to turn it into a holiday let | 0:29:21 | 0:29:24 | |
for the disabled downstairs and enabled people upstairs. | 0:29:24 | 0:29:29 | |
So a holiday let for disabled children or disabled of all ages? | 0:29:29 | 0:29:34 | |
-Anyone that needs it. -Oh, wow. | 0:29:34 | 0:29:36 | |
So, why do you want to do that particularly? | 0:29:36 | 0:29:39 | |
Well, I'm a nurse so I obviously work | 0:29:39 | 0:29:45 | |
with all sorts of people and it's got a... | 0:29:45 | 0:29:50 | |
I feel there's a need for accommodation | 0:29:50 | 0:29:53 | |
with disabled in mind in the area. | 0:29:53 | 0:29:56 | |
Basically, what we're going to do is keep a garage space | 0:29:56 | 0:30:00 | |
for when the disabled come in. They can drive straight into the building. | 0:30:00 | 0:30:05 | |
There's going to be bedrooms downstairs, | 0:30:05 | 0:30:09 | |
an extension out to the side | 0:30:09 | 0:30:11 | |
to create a big lounge and a kitchen area, | 0:30:11 | 0:30:14 | |
and upstairs I'm going to extend the footprint of the building upstairs | 0:30:14 | 0:30:19 | |
-to create accommodation upstairs. -Oh, wow. | 0:30:19 | 0:30:22 | |
-So quite an ambitious plan then. -Yeah. | 0:30:23 | 0:30:25 | |
And eventually there'll be a swimming pool out on the side. | 0:30:25 | 0:30:29 | |
-Oh, really? -HE LAUGHS | 0:30:29 | 0:30:32 | |
Fantastic. | 0:30:32 | 0:30:33 | |
'Swimming pool eventually? My goodness. | 0:30:33 | 0:30:36 | |
'Peter really does have a vision. | 0:30:36 | 0:30:38 | |
'However, this is an ambitious project, | 0:30:38 | 0:30:41 | |
'so how much is it all going to cost?' | 0:30:41 | 0:30:44 | |
-Approximately about 50,000. -Right. | 0:30:44 | 0:30:47 | |
And what's your involvement going to be, Simon? | 0:30:47 | 0:30:49 | |
I've been an electrician for about five years, | 0:30:49 | 0:30:51 | |
so I'm going to try and give my father a hand with the electrics. | 0:30:51 | 0:30:56 | |
So, is this designed to be a profit-making venture then? | 0:30:56 | 0:31:00 | |
No, not really. It's just something for me to do. | 0:31:00 | 0:31:04 | |
I'm coming up to my retirement. | 0:31:04 | 0:31:06 | |
I've got about another four or five years before I retire | 0:31:06 | 0:31:10 | |
and this is my retirement project. | 0:31:10 | 0:31:14 | |
What's the timescale? | 0:31:14 | 0:31:16 | |
It will be at least a year. | 0:31:16 | 0:31:18 | |
Obviously I am in full-time employment so it won't be... | 0:31:18 | 0:31:21 | |
-I couldn't say six months. -Right. -It'll be at least a year. | 0:31:24 | 0:31:28 | |
So, once you've done this then, any plans for anything else? | 0:31:28 | 0:31:32 | |
No, my wife said this is it. | 0:31:32 | 0:31:33 | |
Well, listen, congratulations. | 0:31:35 | 0:31:37 | |
Good luck with it and I really do wish you all the best | 0:31:37 | 0:31:39 | |
-with the venture. -Great. | 0:31:39 | 0:31:41 | |
Well, what a potentially lovely new life | 0:31:41 | 0:31:45 | |
for this former ambulance station, but of course | 0:31:45 | 0:31:48 | |
it does depend on getting that all-important planning permission. | 0:31:48 | 0:31:52 | |
Will Peter get it? You can find out later in the show. | 0:31:52 | 0:31:55 | |
Back to Willesden in north London, a place that was once a village | 0:32:00 | 0:32:04 | |
but was transformed to a bustling borough | 0:32:04 | 0:32:06 | |
by the arrival of the railway. | 0:32:06 | 0:32:08 | |
Unfortunately, the property I went to see | 0:32:08 | 0:32:11 | |
was a little too close to the tracks. | 0:32:11 | 0:32:13 | |
# Train roll on... | 0:32:15 | 0:32:18 | |
# Outside my door... # | 0:32:19 | 0:32:24 | |
But jumping on the property train was Raj, a property solicitor who, | 0:32:25 | 0:32:29 | |
along with his business partner, paid 291,000 | 0:32:29 | 0:32:33 | |
for this one-bedroom flat. | 0:32:33 | 0:32:35 | |
But he didn't want to keep it a one-bed for long. | 0:32:35 | 0:32:38 | |
So, what we're looking to do is reconfigure the property. | 0:32:40 | 0:32:43 | |
At the moment it's a one-bedroom, so what we're going to be doing | 0:32:43 | 0:32:46 | |
is taking the wall down between the current bedroom | 0:32:46 | 0:32:49 | |
and the actual kitchen, and relocating the kitchen | 0:32:49 | 0:32:52 | |
into an open-plan area. | 0:32:52 | 0:32:54 | |
-And making that TINY little bit left over... -Yes. -..a bedroom? | 0:32:54 | 0:32:58 | |
-It can work. It has worked on previous projects. -Oh, Raj! | 0:32:58 | 0:33:01 | |
It can actually work. | 0:33:01 | 0:33:04 | |
With a £20,000 budget and a two to two-and-a-half month timescale, | 0:33:04 | 0:33:08 | |
Raj was very confident. | 0:33:08 | 0:33:10 | |
So, when we return five months later, | 0:33:10 | 0:33:13 | |
has Raj found that extra space? | 0:33:13 | 0:33:15 | |
That original bedroom is now a bright kitchen-cum-lounge. | 0:33:20 | 0:33:24 | |
You know, so far I am surprised. | 0:33:24 | 0:33:26 | |
This doesn't feel nearly as cramped as I thought it would. | 0:33:26 | 0:33:30 | |
The original kitchen is now a second bedroom | 0:33:33 | 0:33:35 | |
and the boiler has been housed in a nice, sleek cabinet. | 0:33:35 | 0:33:39 | |
The original bedroom still needs a bit of tidying up | 0:33:47 | 0:33:50 | |
but this reconfiguration and refurbishment is looking good. | 0:33:50 | 0:33:54 | |
The room which we're currently standing in was the former kitchen. | 0:33:54 | 0:33:57 | |
Now you can see it's actually become a second bedroom | 0:33:57 | 0:34:00 | |
and I think that's worked very well. The back bedroom remains | 0:34:00 | 0:34:03 | |
but at that time there were pretty much dark colours on the wall | 0:34:03 | 0:34:06 | |
so what we've done is we've used neutral colours throughout | 0:34:06 | 0:34:08 | |
the flat, new flooring put down. | 0:34:08 | 0:34:11 | |
The actual bath suite, | 0:34:11 | 0:34:12 | |
we've retained the actual one which was there before. | 0:34:12 | 0:34:14 | |
We thought that was a good one, but as you can see, | 0:34:14 | 0:34:16 | |
it's had a good polish up so we think it fits the bill. | 0:34:16 | 0:34:20 | |
Raj changed his mind about knocking the wall down | 0:34:21 | 0:34:24 | |
between what was the lounge and the kitchen | 0:34:24 | 0:34:26 | |
to create an open living space, and I think that's a good use | 0:34:26 | 0:34:30 | |
of the footprint, and the finish is impressive. | 0:34:30 | 0:34:33 | |
Raj hasn't undertaken a lot of the work he originally thought. | 0:34:36 | 0:34:39 | |
Has not replacing the bathroom and keeping that wall saved his budget? | 0:34:39 | 0:34:43 | |
We had initially estimated a budget of £15,000 - £20,000 | 0:34:43 | 0:34:47 | |
but that involved the taking down of the stud wall | 0:34:47 | 0:34:50 | |
and putting in RSJs and so forth. | 0:34:50 | 0:34:52 | |
However, because we decided not to go ahead with that, | 0:34:52 | 0:34:55 | |
the budget's actually come in significantly under. | 0:34:55 | 0:34:57 | |
I think when everything's totally finished, there's a few | 0:34:57 | 0:34:59 | |
snagging items to do, I think we'll have looked at hitting | 0:34:59 | 0:35:03 | |
probably about the £15,000 mark, so we're very, very happy with that. | 0:35:03 | 0:35:06 | |
It's five months since we were last here | 0:35:08 | 0:35:10 | |
but Raj let a friend use the flat for two months | 0:35:10 | 0:35:13 | |
before spending three on doing the work, so only a slight expansion | 0:35:13 | 0:35:17 | |
on his two and a half month timescale. | 0:35:17 | 0:35:20 | |
And, unfortunately, there is one final improvement Raj didn't do. | 0:35:20 | 0:35:24 | |
He hasn't changed the windows and I think that would have | 0:35:24 | 0:35:27 | |
made this flat SO much more attractive if he decides to sell on. | 0:35:27 | 0:35:32 | |
He might not be able to change the trains but the sound? Mm... | 0:35:32 | 0:35:35 | |
Definitely! | 0:35:35 | 0:35:37 | |
# Can't ignore the train... # | 0:35:37 | 0:35:40 | |
But there's only one way to know if Raj is on track | 0:35:43 | 0:35:46 | |
for a potential profit, and that's to get a pass | 0:35:46 | 0:35:48 | |
from two local estate agents. | 0:35:48 | 0:35:50 | |
Paying £291,000 at auction and with a renovation spend of 15 grand, | 0:35:53 | 0:35:58 | |
Raj's total spend is 306,000. So, what is the flat worth now? | 0:35:58 | 0:36:04 | |
I feel, in the current market, the correct price is £350,000. | 0:36:06 | 0:36:10 | |
I think this property would sell for around £375,000. | 0:36:10 | 0:36:14 | |
I feel the correct rental figure per calendar month | 0:36:14 | 0:36:18 | |
is £1,400 in the current market. | 0:36:18 | 0:36:20 | |
I feel this property would rent for around £1,300 - £1,350 | 0:36:20 | 0:36:25 | |
per calendar month. | 0:36:25 | 0:36:27 | |
So, taking those top values, | 0:36:27 | 0:36:29 | |
a sale would give Raj a potential pre-tax profit of £69,000 | 0:36:29 | 0:36:34 | |
and if he rented the flat he could achieve just under a 5.5% yield. | 0:36:34 | 0:36:40 | |
I'm very happy with those values. It's exactly what I'd expected. | 0:36:40 | 0:36:43 | |
I think we will market the property at £375,000 and if we can get | 0:36:43 | 0:36:47 | |
a resale figure between 350 - 375, | 0:36:47 | 0:36:49 | |
we're more than likely to sell it on. | 0:36:49 | 0:36:52 | |
If not, we'll put it onto the lettings market. | 0:36:52 | 0:36:55 | |
We'll definitely be hitting the auction room again | 0:36:55 | 0:36:57 | |
but I think the trick about buying at auctions is to be patient | 0:36:57 | 0:37:01 | |
and not to buy in haste and repent at leisure. | 0:37:01 | 0:37:03 | |
So, most certainly we'll be in the auction room again | 0:37:03 | 0:37:06 | |
and we hope to buy sooner rather than later. | 0:37:06 | 0:37:09 | |
# Into the valley | 0:37:17 | 0:37:21 | |
# Betrothed and divine... # | 0:37:21 | 0:37:23 | |
Yes, it's time to return to the valleys and this building, | 0:37:23 | 0:37:27 | |
a former ambulance station | 0:37:27 | 0:37:28 | |
in the Welsh village of Cymmer, West Glamorgan. | 0:37:28 | 0:37:31 | |
It had a guide price of £10,000, | 0:37:31 | 0:37:34 | |
which seemed reasonable for a lot with a fair bit of land. | 0:37:34 | 0:37:38 | |
So, what to do with it? | 0:37:38 | 0:37:40 | |
The imaginative and laudable answer was supplied by Peter, | 0:37:40 | 0:37:44 | |
who'd bought the property for £22,500. | 0:37:44 | 0:37:47 | |
With a budget of £50,000 and help from his electrician son, Simon, | 0:37:47 | 0:37:52 | |
Peter, an occupational health nurse, saw this as a retirement project | 0:37:52 | 0:37:57 | |
and hoped to develop this building into holiday accommodation | 0:37:57 | 0:38:00 | |
for touring cyclists. | 0:38:00 | 0:38:02 | |
And he planned that the ground-floor would be developed specifically | 0:38:02 | 0:38:06 | |
to accommodate people with disabilities | 0:38:06 | 0:38:08 | |
and underprivileged children. | 0:38:08 | 0:38:10 | |
Now, what are you going to do if they say, "You can't do this"? | 0:38:10 | 0:38:14 | |
Uh... We'll approach that when it comes to that! | 0:38:15 | 0:38:20 | |
This was both an exciting and incredibly worthy project | 0:38:20 | 0:38:24 | |
but having paid £12,500 above the guide price, | 0:38:24 | 0:38:28 | |
and having no planning in place, | 0:38:28 | 0:38:30 | |
Peter and Simon were certainly taking a chance. | 0:38:30 | 0:38:33 | |
Three years later, | 0:38:35 | 0:38:36 | |
and we've come back to see what's become of Peter's dream project. | 0:38:36 | 0:38:41 | |
# You are nearer than heaven | 0:38:41 | 0:38:48 | |
# I get the feeling | 0:38:48 | 0:38:50 | |
# I get nearer by the day... # | 0:38:50 | 0:38:56 | |
Well, they took a chance and it's obvious something has caused delays. | 0:38:57 | 0:39:02 | |
Most of the time it's been regarding the planning permission | 0:39:02 | 0:39:05 | |
but there was an issue with obtaining bat and reptile reports. | 0:39:05 | 0:39:10 | |
There was one newt found on the property | 0:39:10 | 0:39:14 | |
and we had to take precautions then to remove newts | 0:39:14 | 0:39:18 | |
and to observe that there wasn't any further, | 0:39:18 | 0:39:21 | |
and also to put up a barrier to stop any coming in. | 0:39:21 | 0:39:25 | |
Newt protection and planning permission issues, | 0:39:27 | 0:39:29 | |
as well as waiting for the sale of his mother's property, | 0:39:29 | 0:39:32 | |
means it's been nearly three years since he started, | 0:39:32 | 0:39:36 | |
but thanks to his perseverance, | 0:39:36 | 0:39:38 | |
Peter's dream can finally be realised | 0:39:38 | 0:39:41 | |
as that particularly tricky planning permission has been granted. | 0:39:41 | 0:39:45 | |
Basically, this is the ground floor of the apartment | 0:39:45 | 0:39:50 | |
and the majority of the work will involve this new extension here | 0:39:50 | 0:39:54 | |
in this section to create a lounge and kitchen facilities | 0:39:54 | 0:39:59 | |
for the disabled unit. | 0:39:59 | 0:40:01 | |
Peter will then divide the main garage section into five. | 0:40:01 | 0:40:05 | |
Three bedrooms, | 0:40:05 | 0:40:08 | |
a garage space-cum-storeroom | 0:40:08 | 0:40:11 | |
and the bathroom. | 0:40:11 | 0:40:12 | |
So, the building will effectively be split into two flats, | 0:40:14 | 0:40:17 | |
each with three bedrooms, a bathroom and a kitchen, | 0:40:17 | 0:40:20 | |
with the ground-floor flat adapted for people with disabilities. | 0:40:20 | 0:40:24 | |
There will also be a communal area in the ground-floor extension | 0:40:24 | 0:40:28 | |
and, all being well, Peter plans on installing | 0:40:28 | 0:40:31 | |
the property's own hydro pool. | 0:40:31 | 0:40:33 | |
At the moment, it looks as though his dream project will cost | 0:40:33 | 0:40:36 | |
a total of £72,500. | 0:40:36 | 0:40:39 | |
Is Peter on the right track? | 0:40:39 | 0:40:41 | |
We asked two local estate agents to give us their thoughts | 0:40:43 | 0:40:46 | |
on Peter's plans so far. | 0:40:46 | 0:40:49 | |
In this area, local businesses do struggle. | 0:40:49 | 0:40:52 | |
There isn't an awful lot happening in this village. | 0:40:52 | 0:40:54 | |
Businesses don't seem to last long because of the economy here. | 0:40:54 | 0:40:58 | |
There is vast unemployment in these valleys, so it is very difficult. | 0:40:58 | 0:41:03 | |
This is a very popular area for mountain biking | 0:41:03 | 0:41:06 | |
and they'll pay good money for good runs. | 0:41:06 | 0:41:09 | |
Accommodation which is planned which is a three-bedroom flat | 0:41:09 | 0:41:12 | |
and one that's going to be completely geared | 0:41:12 | 0:41:14 | |
for disabled users, I think that's going to carve | 0:41:14 | 0:41:17 | |
quite a nice niche for him and I think it will | 0:41:17 | 0:41:20 | |
attract that type of mountain biker in that market. | 0:41:20 | 0:41:25 | |
When fully finished and including a pool, what does the agent | 0:41:28 | 0:41:31 | |
think a commercial enterprise based on Peter's plan could make? | 0:41:31 | 0:41:35 | |
That's quite a difficult one | 0:41:38 | 0:41:39 | |
because there aren't a lot of commercial properties in this area, | 0:41:39 | 0:41:43 | |
so I think you'd probably be looking at about 600 per calendar month. | 0:41:43 | 0:41:49 | |
That would mean around a 10% yield. | 0:41:49 | 0:41:52 | |
If, by some unfortunate circumstances, | 0:41:52 | 0:41:54 | |
the local economy couldn't sustain the business, | 0:41:54 | 0:41:57 | |
and assuming planning permission could be obtained, | 0:41:57 | 0:41:59 | |
would Peter get his projected £72,500 investment back | 0:41:59 | 0:42:03 | |
if the building were to be turned into two residential flats? | 0:42:03 | 0:42:07 | |
I think you would get anything between 375 and 400 | 0:42:10 | 0:42:14 | |
per calendar month per unit. | 0:42:14 | 0:42:16 | |
To change this into a three-bedroom good-sized accommodation | 0:42:16 | 0:42:22 | |
you would probably market each unit | 0:42:22 | 0:42:26 | |
for around about £35,000 - £40,000. | 0:42:26 | 0:42:30 | |
I would put a vacant possession value | 0:42:30 | 0:42:34 | |
on each flat of circa £40,000 | 0:42:34 | 0:42:38 | |
if it's done to a high standard | 0:42:38 | 0:42:39 | |
and to the standard that is intended in the planning permission. | 0:42:39 | 0:42:42 | |
This is a dream project for Peter | 0:42:42 | 0:42:45 | |
but would he think about this plan B? | 0:42:45 | 0:42:48 | |
I may consider splitting it into two units if the business didn't take off | 0:42:48 | 0:42:53 | |
but basically it's quite exciting. | 0:42:53 | 0:42:57 | |
I thrive on this sort of thing | 0:42:57 | 0:42:59 | |
and I'm just looking forward to getting into it. | 0:42:59 | 0:43:03 | |
Well, that's it for today but join us next time | 0:43:06 | 0:43:08 | |
for some more auction action. | 0:43:08 | 0:43:10 | |
And stories of property developing. | 0:43:10 | 0:43:12 | |
-Look forward to seeing you then. -Goodbye. -Goodbye. | 0:43:12 | 0:43:14 |