0:00:02 > 0:00:03Hello, welcome to the show.
0:00:03 > 0:00:05We're always being told we need to save for the future.
0:00:05 > 0:00:08That's even more true these days
0:00:08 > 0:00:10when people are being asked to supplement their pensions.
0:00:10 > 0:00:15Yes, but property can be a very attractive option as an investment,
0:00:15 > 0:00:17which could explain why more and more people
0:00:17 > 0:00:18are heading to the auctions.
0:00:44 > 0:00:47If, like us, you're hoping that property will be a safe investment,
0:00:47 > 0:00:49you need to buy wisely.
0:00:49 > 0:00:53That means doing your research to really find those
0:00:53 > 0:00:54good value properties.
0:00:54 > 0:00:58So, what did the buyers who went to the auctions on today's show
0:00:58 > 0:00:59come up with?
0:01:01 > 0:01:03When it comes to casting light on the matter,
0:01:03 > 0:01:06there's a big problem with this Maidstone property.
0:01:06 > 0:01:08There's no natural daylight,
0:01:08 > 0:01:09there's no window in here.
0:01:10 > 0:01:14And this two-bed terraced house in Hanley, Stoke-on-Trent
0:01:14 > 0:01:17is also missing a vital ingredient.
0:01:17 > 0:01:19Could do with a front door though.
0:01:21 > 0:01:24But this two-bed flat in Cricklewood, London,
0:01:24 > 0:01:25has a little bit extra.
0:01:25 > 0:01:29This is probably one of the longest corridors I've seen
0:01:29 > 0:01:30in a two-bed flat.
0:01:32 > 0:01:34All of these properties have been sold at auction,
0:01:34 > 0:01:37and we'll find out who bought them and what they paid for them
0:01:37 > 0:01:39when they went under the hammer.
0:01:39 > 0:01:40It's yours, sir.
0:01:44 > 0:01:48I'm in Maidstone in Kent, and that's no bad thing.
0:01:48 > 0:01:51Excellent train links and an attractive town centre.
0:01:51 > 0:01:55And sometimes, just sometimes, some real bargains in the auction room.
0:01:58 > 0:02:01Just over a mile from the town centre, this area
0:02:01 > 0:02:05has more of a suburby feel with plenty of local shops and amenities.
0:02:05 > 0:02:08And the property I'm here to see, well,
0:02:08 > 0:02:11it too has a commercial past, but as a business
0:02:11 > 0:02:16we all eventually need, but most of us would sooner forget.
0:02:16 > 0:02:19Yes, this building here was a funeral directors.
0:02:19 > 0:02:24Mm, it has a ring of a rather hard sell about it.
0:02:24 > 0:02:27Still, for the guide price of £60,000-£70,000,
0:02:27 > 0:02:28it's worth taking a look.
0:02:32 > 0:02:35Quite a practical space inside.
0:02:35 > 0:02:37You can see it's terribly dated,
0:02:37 > 0:02:40you need to get rid of the carpets, the wallpaper.
0:02:40 > 0:02:41It's got quite a commercial feel about it.
0:02:41 > 0:02:43Look, there's strip lighting up here.
0:02:43 > 0:02:47So, straightaway, there's a lot you could do to improve this space.
0:02:47 > 0:02:50You've got the stairs leading down to the bottom rooms,
0:02:50 > 0:02:52and the second reception room.
0:02:52 > 0:02:56Now, this room, I can't say it any other way, stinks of damp.
0:02:56 > 0:02:57And you can see why.
0:02:57 > 0:02:59Look, there's obviously been a huge leak.
0:02:59 > 0:03:00First things first,
0:03:00 > 0:03:02I would go up and have a chat with my neighbour,
0:03:02 > 0:03:04because I think either a washing machine,
0:03:04 > 0:03:07or a bath has been overflowing. Something's gone wrong there.
0:03:07 > 0:03:10So, this place, I would say it's not huge,
0:03:10 > 0:03:12but it's not in bad nick.
0:03:13 > 0:03:16And someone's tried to jazz up the exterior already
0:03:16 > 0:03:18with some pastel tones.
0:03:18 > 0:03:20But there's no painting over the history of this property
0:03:20 > 0:03:22as a funeral directors,
0:03:22 > 0:03:24which will always put some people off.
0:03:26 > 0:03:28Still, you get the ground and lower-ground floor
0:03:28 > 0:03:30included in the guide price,
0:03:30 > 0:03:33and the freehold to the entire building.
0:03:33 > 0:03:36As I've mentioned, the flat upstairs is not yours,
0:03:36 > 0:03:38and is already let.
0:03:38 > 0:03:41I've got to be honest though, I'm just not convinced that
0:03:41 > 0:03:44this is the right location for another commercial premises.
0:03:44 > 0:03:48So, I'm hoping that downstairs will enable me to keep my options open.
0:03:49 > 0:03:53Well, it gets a little darker and dingier downstairs.
0:03:53 > 0:03:54You've got two rooms.
0:03:54 > 0:03:58Fairly good size here with a little door that leads outside
0:03:58 > 0:03:59to the outside space.
0:03:59 > 0:04:00But this is where...
0:04:00 > 0:04:02Well, it's just a little bit tricky.
0:04:02 > 0:04:04Not a fantastic space in here.
0:04:04 > 0:04:07I suppose you could knock through, you've got a little sink,
0:04:07 > 0:04:09open this area up.
0:04:09 > 0:04:13But I am thinking I would like to turn this into residential.
0:04:13 > 0:04:15But, there is a huge problem.
0:04:15 > 0:04:17Have you noticed it?
0:04:17 > 0:04:18There's no natural daylight.
0:04:18 > 0:04:20There's no window in here.
0:04:20 > 0:04:23So, how can I go about getting some light in this room?
0:04:23 > 0:04:25Well, I've seen this done before.
0:04:25 > 0:04:28You could try and get a sort of light well here.
0:04:28 > 0:04:32A big piece of thick glass, because the pavement is just there.
0:04:32 > 0:04:35And therefore, daylight would stream through.
0:04:35 > 0:04:37You could then even call this a bedroom.
0:04:37 > 0:04:39But it would work, and it would tick the box,
0:04:39 > 0:04:42and then you could turn this from commercial into residential.
0:04:48 > 0:04:52Suddenly, with light at the front of the property, you have options here.
0:04:52 > 0:04:55You'd have two apply for "change of use" to the council,
0:04:55 > 0:04:59but once you'd achieved that, you could have your bedrooms upstairs,
0:04:59 > 0:05:03and the lower ground floor could be your kitchen and living room area.
0:05:04 > 0:05:07Outside is winning a lot of brownie points as well,
0:05:07 > 0:05:11with its potentially lovely garden and a massive garage
0:05:11 > 0:05:15which, as always, has got me thinking...
0:05:15 > 0:05:18This garden and garage are a significant bonus,
0:05:18 > 0:05:20particularly as they're on a corner plot,
0:05:20 > 0:05:23and you've got independent access off the road.
0:05:23 > 0:05:27Could you even think of building another dwelling here?
0:05:27 > 0:05:29Other people have approached the council in the past,
0:05:29 > 0:05:31and the response has been negative,
0:05:31 > 0:05:34which doesn't mean a bit of perseverance wouldn't pay off.
0:05:34 > 0:05:37But if the answer were still a big, fat no,
0:05:37 > 0:05:40then maybe look to rent this garage out as a workshop.
0:05:40 > 0:05:44200 quid a month could be a very nice little bonus to living here.
0:05:44 > 0:05:49# You have that extra something and what is more
0:05:49 > 0:05:51# You have me... #
0:05:52 > 0:05:55A little extra income is always handy.
0:05:55 > 0:05:58But what does the local property expert think of this flat?
0:05:58 > 0:06:00Let's find out.
0:06:00 > 0:06:03I understand this property, at the moment, has commercial use,
0:06:03 > 0:06:07and it's subject to a planning application to change the use.
0:06:07 > 0:06:08If it gets residential use, of course,
0:06:08 > 0:06:13it would make a really nice, smart, ground and lower-ground floor flat,
0:06:13 > 0:06:16with its own garden, which is excellent.
0:06:16 > 0:06:19Like me, he doesn't seem to think there is a commercial option here.
0:06:20 > 0:06:24This particular stretch of the road is dotted
0:06:24 > 0:06:26with small, commercial units,
0:06:26 > 0:06:30and they're quite often vacant or converted to residential use.
0:06:30 > 0:06:32So, it's not a great demand for commercial,
0:06:32 > 0:06:35so I can't see that being viable.
0:06:35 > 0:06:38I think residential is the way forward.
0:06:38 > 0:06:42And if whoever bought it, achieved the change of use to residential,
0:06:42 > 0:06:45what kind of value are we looking at?
0:06:45 > 0:06:46Providing they're able to convert it
0:06:46 > 0:06:49into two reasonable-sized bedrooms,
0:06:49 > 0:06:51I would anticipate this property selling for
0:06:51 > 0:06:54something in the region of £110,000.
0:06:54 > 0:06:57So, a potentially decent, if not staggering, profit
0:06:57 > 0:07:02if it was bought for anything near that 60,000-70,000 guide price.
0:07:02 > 0:07:04But what if it was rented out?
0:07:04 > 0:07:08If the property were to be rented, I would anticipate achieving
0:07:08 > 0:07:12something in the region of £600 per calendar month.
0:07:12 > 0:07:13That's more like it.
0:07:13 > 0:07:17Buy for the guide price of 60,000, spend 20 grand on the work,
0:07:17 > 0:07:20you're looking at a yield of 9%.
0:07:20 > 0:07:23But what if the owner did decide to keep it as commercial
0:07:23 > 0:07:24and lease it out?
0:07:24 > 0:07:29For a continued commercial use, I would anticipate somebody
0:07:29 > 0:07:34renting or leasing this property for about £4,000, maybe £5,000 per annum.
0:07:35 > 0:07:37Pretty in pink from the outside,
0:07:37 > 0:07:41but this property's past will always be a sticking point for some people.
0:07:41 > 0:07:44Get over that, and you could have yourself a decent rental investment.
0:07:44 > 0:07:47Let see who wanted it at the auction.
0:07:48 > 0:07:50Freehold commercial premises. Start me at 50 then.
0:07:50 > 0:07:52At 50.
0:07:52 > 0:07:5350 over at the back.
0:07:53 > 0:07:55Can I take 55 from you? 55.
0:07:55 > 0:07:56And 60 I'm looking for.
0:07:56 > 0:07:5760 I have.
0:07:57 > 0:07:59And 65 now. 65.
0:07:59 > 0:08:00Now, is anybody else coming in?
0:08:00 > 0:08:02£70,000, I have in the aisle.
0:08:02 > 0:08:0575, it's against you. 75, it's with you.
0:08:05 > 0:08:06And 80 now, if you like.
0:08:06 > 0:08:0780 I've got.
0:08:07 > 0:08:0885 now.
0:08:08 > 0:08:1082, if it helps you.
0:08:10 > 0:08:11At 82.
0:08:11 > 0:08:1382 I've got. 84.
0:08:13 > 0:08:15And 84? It's a shake of the head.
0:08:15 > 0:08:18At £82,000 on bid, and 84 I'm looking for.
0:08:18 > 0:08:19At £82,000 then.
0:08:19 > 0:08:21I've got for the first time...
0:08:21 > 0:08:24At £82,000 for the second time.
0:08:24 > 0:08:26Third and final time if you're sure you're all done.
0:08:26 > 0:08:28- It's going to be sold. - HE BANGS GAVEL
0:08:28 > 0:08:30£82,000.
0:08:30 > 0:08:34And that successful bid of 82,000 was from Debbie.
0:08:35 > 0:08:37Debbie is a property developer,
0:08:37 > 0:08:40but she used to be a detective in the Metropolitan police.
0:08:42 > 0:08:44She's also a Kent local.
0:08:44 > 0:08:47And she hasn't bought this property for herself,
0:08:47 > 0:08:48but on behalf of someone else...
0:08:48 > 0:08:50intriguing.
0:08:50 > 0:08:53I met her back at the former funeral directors to find out more.
0:08:54 > 0:08:56Debbie, lovely to meet you today.
0:08:56 > 0:08:59I want to know all the story, and why you wanted to buy this.
0:08:59 > 0:09:01What was it about this property that took your eye?
0:09:02 > 0:09:07Um, well, the price was probably the most important factor,
0:09:07 > 0:09:12and the fact that it can be changed quite significantly into
0:09:12 > 0:09:15a very nice dwelling, I think, or residential property.
0:09:15 > 0:09:17And not only the flat,
0:09:17 > 0:09:19but also the three-berth garage out the back,
0:09:19 > 0:09:21the back garden that...
0:09:21 > 0:09:25you know, we knew we could sell on separately for profit.
0:09:25 > 0:09:28Do you think you might have a problem selling this on
0:09:28 > 0:09:30because it's...or it was a funeral directors?
0:09:30 > 0:09:32I don't think so, no.
0:09:32 > 0:09:35I think by the time we've finished here it's going to look so different,
0:09:35 > 0:09:39and it'll totally lose the feel of what it has been in the past,
0:09:39 > 0:09:42because there's no windows downstairs and it's a bit musty,
0:09:42 > 0:09:45and you know, the partition walls are in.
0:09:45 > 0:09:47But once we've taken all those out and put a window in,
0:09:47 > 0:09:51and put patio doors in, and made the garden into a feature,
0:09:51 > 0:09:53I think it'll come up really nice.
0:09:54 > 0:09:56Debbie has purchased on behalf of a client
0:09:56 > 0:09:58who owns a company in the UK,
0:09:58 > 0:10:01but is actually a non-resident in Saudi Arabia,
0:10:01 > 0:10:03so couldn't come over to do the job himself.
0:10:04 > 0:10:08We provide an auction buying service for anybody really.
0:10:08 > 0:10:12Any investor who wants to do this sort of thing, refurbish and sell on,
0:10:12 > 0:10:14but doesn't have the time to do it themselves.
0:10:14 > 0:10:17So, you know, we can do it on their behalf.
0:10:17 > 0:10:20And you obviously take a percentage of...the end result?
0:10:20 > 0:10:23At the moment I'm taking a flat fee for all the research
0:10:23 > 0:10:26and the actual buying side of things at auction,
0:10:26 > 0:10:30but, yeah, ultimately, I'll take a small percentage of profit as well.
0:10:30 > 0:10:34For her £5,000 fee, Debbie not only finds and buys the properties
0:10:34 > 0:10:38for her client, she also project manages the renovation as well.
0:10:38 > 0:10:41Now, she's not going for my idea of having the living space
0:10:41 > 0:10:43on the lower-ground floor.
0:10:43 > 0:10:47So, you're planning on having both bedrooms downstairs with a bathroom?
0:10:47 > 0:10:49Yeah, and the bath will go under the stairs
0:10:49 > 0:10:50to make maximum use of the space.
0:10:50 > 0:10:52And your master bedroom will be lovely
0:10:52 > 0:10:54because it'll have access out into the garden.
0:10:54 > 0:10:57Yeah, yeah, we've got all sorts of plans for the outside, and
0:10:57 > 0:11:00I actually think that's going to be the...the thing
0:11:00 > 0:11:01that really shines this up.
0:11:01 > 0:11:03Upstairs, you're living areas...
0:11:03 > 0:11:05Mm-hm, this is going to be the lounge area,
0:11:05 > 0:11:10and we'll be putting new windows in, and new flooring, etc.
0:11:10 > 0:11:13So, it's a good size room for, you know, a two-bedroom flat lounge.
0:11:13 > 0:11:16And the room behind us is going to be the kitchen, which again,
0:11:16 > 0:11:20is going to be a good-sized room, and we'll put a little...maybe
0:11:20 > 0:11:24an island or some sort of table and chairs by the big window out there,
0:11:24 > 0:11:25so that, you know,
0:11:25 > 0:11:28just come somewhere nice to sit and have a coffee.
0:11:28 > 0:11:30So what sort of budget are you looking at?
0:11:30 > 0:11:32We've got a top budget of 20,000 for this...
0:11:32 > 0:11:35- OK.- ..property but I'm hoping not to use all that.
0:11:35 > 0:11:36Really?
0:11:36 > 0:11:38See, I was going to say that's not a huge amount to do
0:11:38 > 0:11:40what I think you need to do here.
0:11:40 > 0:11:41We've...
0:11:41 > 0:11:44I have access to a team of contractors that have done
0:11:44 > 0:11:46a lot of properties for us in the past,
0:11:46 > 0:11:49and they will all do things at a very good price,
0:11:49 > 0:11:51and if we start heading up...
0:11:51 > 0:11:53too close to the budget line, then
0:11:53 > 0:11:56my kids come in quite handy and, you know.
0:11:56 > 0:11:58SHE LAUGHS Well, I'll come down here with a
0:11:58 > 0:12:01paintbrush myself and finish it off, so, you know,
0:12:01 > 0:12:05we will come in under budget one way or the other.
0:12:05 > 0:12:08How soon do you need to get this done for your client?
0:12:08 > 0:12:11We need to turn the whole project over in six months.
0:12:11 > 0:12:12So what's more exciting?
0:12:12 > 0:12:14This, or being in the police force?
0:12:14 > 0:12:18- This is, definitely.- Really?! - Yeah, I think so.- More stressful?
0:12:18 > 0:12:19SHE MUMBLES
0:12:19 > 0:12:22- Certainly more stressful! - Yeah, well, there is...
0:12:22 > 0:12:26It does take a bit of...bit of nerve sometimes, doesn't it?
0:12:26 > 0:12:29Debbie, I'm so excited to see what you do to this place,
0:12:29 > 0:12:30and how you turn it around.
0:12:30 > 0:12:32Good luck with this project.
0:12:32 > 0:12:33Thank you.
0:12:33 > 0:12:37So, Debbie's now pursuing profit rather than criminals,
0:12:37 > 0:12:41and she finds it more exciting, which is brilliant.
0:12:41 > 0:12:43This place throws up a few challenges though,
0:12:43 > 0:12:46and I will be intrigued to find out how it goes.
0:12:46 > 0:12:49You can join us later to see how she gets on.
0:12:53 > 0:12:57I'm in Hanley in Stoke-on-Trent,
0:12:57 > 0:13:00where they came up with a really interesting concept
0:13:00 > 0:13:03for bringing back houses that have been...
0:13:03 > 0:13:06- HE BANGS - ..left unoccupied for quite a while
0:13:06 > 0:13:08back into use.
0:13:08 > 0:13:11Selling them off for £1.
0:13:11 > 0:13:13Yeah, £1.
0:13:13 > 0:13:16Before you start raiding your piggy bank,
0:13:16 > 0:13:18be aware that this isn't a free for all.
0:13:18 > 0:13:22It's a scheme that isn't open to developers or anyone hoping to
0:13:22 > 0:13:23make a quick buck.
0:13:23 > 0:13:26Strict criteria ensures that
0:13:26 > 0:13:29124 houses will be bought and lived in
0:13:29 > 0:13:31by local families.
0:13:31 > 0:13:3335 were sold in the first tranche.
0:13:33 > 0:13:35The council spends money on the houses
0:13:35 > 0:13:38prior to the new families moving in,
0:13:38 > 0:13:40and it's paid back over a period of time.
0:13:40 > 0:13:44It's a great way to provide homes and regenerate an area,
0:13:44 > 0:13:46and it can be a plus for developers too.
0:13:46 > 0:13:49An area in the process of regeneration
0:13:49 > 0:13:51is a great place to invest your money.
0:13:51 > 0:13:53Well, about 15 minutes walk from the centre of Hanley
0:13:53 > 0:13:55is the property I'm here to see.
0:13:55 > 0:13:59So, relatively close to the A500 and Festival Park which is good news.
0:13:59 > 0:14:03Now, this particular house didn't cost £1, however,
0:14:03 > 0:14:06the guide price - just £20,000.
0:14:06 > 0:14:10Plus, still pretty good for a two-bed mid-terrace.
0:14:10 > 0:14:12Could do with a front door though.
0:14:12 > 0:14:14Well, actually, wait a minute.
0:14:14 > 0:14:17You have actually got one, it's just not attached.
0:14:17 > 0:14:18That's alternative.
0:14:18 > 0:14:22But straight off the pavement into your front sitting room,
0:14:22 > 0:14:25very standard design for these kind of houses,
0:14:25 > 0:14:28which probably would have been built for the local factory workers
0:14:28 > 0:14:30maybe in the potteries.
0:14:30 > 0:14:34What's not so usual is this sort of staircase here,
0:14:34 > 0:14:36with the return there.
0:14:36 > 0:14:39I just...I don't know. It makes it very bulky.
0:14:39 > 0:14:41Um, but, you know...hey-ho.
0:14:41 > 0:14:44This is then a bit of an odd room,
0:14:44 > 0:14:46cos you've got the sort of semi-open-plan stairs there,
0:14:46 > 0:14:49and I don't know quite what you'd use this for.
0:14:49 > 0:14:50Maybe a dining room.
0:14:50 > 0:14:53Originally, that's where the house would have finished, but
0:14:53 > 0:14:55obviously, we've now got an extension on here
0:14:55 > 0:14:56which houses the kitchen.
0:14:56 > 0:14:59You know, I mean, it's... Could you salvage this?
0:14:59 > 0:15:01Probably. Boiler looks semi-okay.
0:15:01 > 0:15:04I mean, it's sort of here or there.
0:15:04 > 0:15:06Bathroom, there at the back,
0:15:06 > 0:15:09very classic layout for this kind of property.
0:15:09 > 0:15:14So, thinking it through, coming back to that price...
0:15:14 > 0:15:17A lot more than I expected.
0:15:17 > 0:15:21OK, 20 grand isn't as good as £1, but it's an amazing guide price
0:15:21 > 0:15:24for what appears to be a solid little house.
0:15:24 > 0:15:27The layout of these houses is always a compromise,
0:15:27 > 0:15:29and there are bits of damp here and there.
0:15:29 > 0:15:31And while the condition isn't terrible,
0:15:31 > 0:15:33the shutters don't exactly lift the spirits.
0:15:33 > 0:15:36But, imagine them gone, and what you've got here is a
0:15:36 > 0:15:40great investment opportunity, or a great first home.
0:15:40 > 0:15:42# If you want it, here it is
0:15:42 > 0:15:45# Come and get it
0:15:45 > 0:15:48# Make your mind up fast... #
0:15:50 > 0:15:52So, upstairs, and surprise-surprise,
0:15:52 > 0:15:55two decent-sized bedrooms connected via a little landing.
0:15:55 > 0:15:58A very standard layout.
0:15:58 > 0:16:02But what this house absolutely brings to focus
0:16:02 > 0:16:07is the difference in prices between the north and south of Britain.
0:16:07 > 0:16:09I mean, it is talked about a lot,
0:16:09 > 0:16:12but I was recently in Chelsea, SW10, OK?
0:16:12 > 0:16:15Top end of the London housing market
0:16:15 > 0:16:17where obviously the flats 50 square metres or so,
0:16:17 > 0:16:19and I worked out,
0:16:19 > 0:16:23that done up, this flat would be worth a million pounds, OK?
0:16:23 > 0:16:25That's the property market there.
0:16:25 > 0:16:33That translated to basically £19,000 a square metre. So...
0:16:33 > 0:16:34here's the choice.
0:16:34 > 0:16:36You either have a house in London where you could buy, oh,
0:16:36 > 0:16:38about that much floor...
0:16:38 > 0:16:41Or, you could have this whole house in Stoke-on-Trent.
0:16:41 > 0:16:44In the north. Hm...
0:16:44 > 0:16:46Property price divide in the UK?
0:16:46 > 0:16:47Nooo.
0:16:50 > 0:16:53The craziness of those property market differences aside,
0:16:53 > 0:16:56this area is definitely going to be up and coming,
0:16:56 > 0:16:59and that means whether it's £1 or 20,000,
0:16:59 > 0:17:03chances are, you'd be quids in if you buy in this part of Hanley.
0:17:04 > 0:17:05At the back of the property,
0:17:05 > 0:17:09really nice that you've got rear access via that little alleyway.
0:17:09 > 0:17:12Um, out here though, not much extra space.
0:17:12 > 0:17:14Bit of a courtyard area here.
0:17:14 > 0:17:16But most of it taken up with the extension which looks like it's had
0:17:16 > 0:17:19some sort of extra...
0:17:19 > 0:17:22I don't know, layer on the outside to provide damp proofing,
0:17:22 > 0:17:25maybe get over some of the problems it's had in the past.
0:17:25 > 0:17:27It does looks like somebody's taken some care of the property,
0:17:27 > 0:17:31and it just adds to what is already a surprisingly big house.
0:17:31 > 0:17:35Yep, a big house, but with a rather cramped courtyard.
0:17:35 > 0:17:39And, looking up, the roof doesn't seem to be in the best of health.
0:17:39 > 0:17:42So, it may be advisable for the new owner to get it checked out.
0:17:42 > 0:17:47But apart from that, this house had a lot to offer for 20,000.
0:17:47 > 0:17:49And it's time to find out from a local estate agent
0:17:49 > 0:17:53what they thought of this two-bed house in Hanley.
0:17:53 > 0:17:55This property's ideal.
0:17:55 > 0:17:57It's close to the Hanley town centre,
0:17:57 > 0:18:02there's local schools available, and also to amenities.
0:18:02 > 0:18:05It's easy to get onto the A500 for people
0:18:05 > 0:18:07who want to commute onto the motorway,
0:18:07 > 0:18:09and also,
0:18:09 > 0:18:13the Hanley town centre is actually being regenerated as well,
0:18:13 > 0:18:14with a new shopping centre.
0:18:14 > 0:18:16So again, it's an up-and-coming area,
0:18:16 > 0:18:20not just here but actually in the town centre as well.
0:18:20 > 0:18:22Clearly, this area has a long way to go
0:18:22 > 0:18:24and prices might increase in the long-term.
0:18:24 > 0:18:27But for the moment, what could this house fetch on the market
0:18:27 > 0:18:29once renovated?
0:18:29 > 0:18:31I think this property will fetch
0:18:31 > 0:18:34about £58,000-£60,000.
0:18:34 > 0:18:39And talking of income, what sort of rentals could the house achieve?
0:18:39 > 0:18:41I think this property, when fully renovated,
0:18:41 > 0:18:46will fetch £375-£400 per calendar month.
0:18:46 > 0:18:49It will take time for this part of Hanley to upgrade.
0:18:49 > 0:18:51So, does she think there is a demand for properties
0:18:51 > 0:18:53like this in this area?
0:18:53 > 0:18:56Definitely. There is a demand in this area.
0:18:56 > 0:18:58Obviously, there's a shortage of houses at the moment.
0:18:58 > 0:19:01So, with what the council's doing locally is ideal
0:19:01 > 0:19:03for first-time buyers, and also for families
0:19:03 > 0:19:07what are finding it difficult at the moment to find properties to live in.
0:19:07 > 0:19:11Well, this house just goes to prove that you can still find
0:19:11 > 0:19:14property bargains if you know where to look.
0:19:14 > 0:19:17Let's see who did spot it when it went under the hammer.
0:19:18 > 0:19:21And not surprisingly, given the demand for the property,
0:19:21 > 0:19:22and the regeneration going on,
0:19:22 > 0:19:26the guide price was amended on the day of the auction.
0:19:26 > 0:19:28Lot 15, mid-terraced house.
0:19:28 > 0:19:31Two bedrooms, gas central heating.
0:19:31 > 0:19:34Guide price, increased to £28,000 on this one.
0:19:34 > 0:19:3625 again to start.
0:19:37 > 0:19:38Got to be that. 25 bid.
0:19:38 > 0:19:40Thank you. At £25,000.
0:19:40 > 0:19:4126, going to say now.
0:19:41 > 0:19:44At 25. 26 against the back wall. 26.
0:19:44 > 0:19:4627? 27.
0:19:46 > 0:19:5028. 29. 30.
0:19:50 > 0:19:52Nope? £29,000 then.
0:19:52 > 0:19:5330, anyone else?
0:19:53 > 0:19:5630 in the aisle now. At 30,000.
0:19:56 > 0:19:58New bidder there. 31.
0:19:58 > 0:19:5932.
0:19:59 > 0:20:0233. 34.
0:20:02 > 0:20:04Half, you're saying. 34 and a half?
0:20:04 > 0:20:05Nope, you're out. OK.
0:20:05 > 0:20:0734. Bids in the aisle at 34.
0:20:07 > 0:20:1035 anywhere else? 35.
0:20:10 > 0:20:1236? 36.
0:20:12 > 0:20:1337, sir?
0:20:13 > 0:20:1537.
0:20:15 > 0:20:1838. Shaking his head. Still with you in the aisle, sir.
0:20:18 > 0:20:20£38,000, all done now.
0:20:20 > 0:20:2138 once then.
0:20:21 > 0:20:2238 twice.
0:20:22 > 0:20:24Third and final time. It's 38,000.
0:20:24 > 0:20:27- HE BANGS GAVEL - Yours in the aisle, well done.
0:20:27 > 0:20:31And the successful bidder, getting the lot for £38,000 was Toby.
0:20:33 > 0:20:36Toby, from nearby Stafford, has been on the show before,
0:20:36 > 0:20:39when at the same auction, he also bought and renovated
0:20:39 > 0:20:43this three-bed semi in Tunstall, Stoke-on-Trent.
0:20:43 > 0:20:46Toby told us how his injuries in a serious motorbike accident
0:20:46 > 0:20:49led him to start a career in development.
0:20:49 > 0:20:51And today, his grandfather Alan has come along too
0:20:51 > 0:20:53to tell me their plans.
0:20:53 > 0:20:55Alan, Toby, Great to meet you both.
0:20:55 > 0:20:58- Pleased to meet you. - Congratulations.
0:20:58 > 0:21:01Tell me why you wanted to buy this house.
0:21:01 > 0:21:05- Well, I was looking for three of them in the same street.- Oh.
0:21:05 > 0:21:08So, obviously, group lot all together.
0:21:08 > 0:21:09Didn't quite go to plan.
0:21:09 > 0:21:10What happened?
0:21:10 > 0:21:13Went for more than what I expected.
0:21:13 > 0:21:15A lot more, twice the book price.
0:21:15 > 0:21:17So, why did you want to buy?
0:21:17 > 0:21:18What was the reason?
0:21:18 > 0:21:21The area's an up and coming area,
0:21:21 > 0:21:24the houses in the street are all getting done up theirselves,
0:21:24 > 0:21:26- so the area's going to come up. - Yeah, definitely.
0:21:26 > 0:21:29And it's quite a lot of house for the money, isn't it? Even at 38,000.
0:21:29 > 0:21:30Yeah.
0:21:30 > 0:21:33- So, Alan, you're Toby's grandad? - I am, yes.
0:21:33 > 0:21:34How did you get involved in all this?
0:21:34 > 0:21:37He just wanted some moral support when he went to the auction,
0:21:37 > 0:21:39and, um,
0:21:39 > 0:21:40I was there for him.
0:21:40 > 0:21:44And he set himself a price, and when the prices went up,
0:21:44 > 0:21:46he did all right, but the others were out of his reach.
0:21:46 > 0:21:50- But I'm still pleased with what he's done, achieved.- Yes.- Yes.
0:21:50 > 0:21:52What do you think of the house?
0:21:52 > 0:21:55- He's got some good plans for it and good ideas...- Right.
0:21:55 > 0:21:59..and I'll be there just to give him some support where he needs it.
0:21:59 > 0:22:01It's great that Toby has Alan's support.
0:22:01 > 0:22:03And I'm sure his advice will come in handy,
0:22:03 > 0:22:07as Toby doesn't really have any experience in any of the trades.
0:22:07 > 0:22:10Toby is funding his property buying with the compensation he got
0:22:10 > 0:22:11after his accident.
0:22:11 > 0:22:16So, something positive has come out something that was very traumatic.
0:22:16 > 0:22:19But what exactly are his plans for the house?
0:22:19 > 0:22:21New bathroom,
0:22:21 > 0:22:24new kitchen, cos what's there isn't doable.
0:22:24 > 0:22:27And then, just try and get the rest of it liveable.
0:22:27 > 0:22:30And what sort of work are you going to get involved in yourself?
0:22:30 > 0:22:33Um, everything apart from double glazing.
0:22:33 > 0:22:36That's the only thing. Just going to let a professional do that.
0:22:36 > 0:22:37And then everything else is mine.
0:22:37 > 0:22:40Alan, what about your involvement? Are you going to get...hands dirty?
0:22:40 > 0:22:44I'm just there... No, I'm just there in an adviser capacity.
0:22:44 > 0:22:46- He wants to do it hisself.- Painting.
0:22:46 > 0:22:47- Painting. - MARTIN LAUGHS
0:22:47 > 0:22:51He wants to do this project hisself but I shall be there in the wings
0:22:51 > 0:22:53like if he needs any advice or anything, yes.
0:22:53 > 0:22:57- So, what's the budget going to be? - About 7,500.- Right.
0:22:57 > 0:22:59- So, doing a lot of the work yourself, I assume.- Yeah.
0:22:59 > 0:23:01The main bit is windows.
0:23:01 > 0:23:04That's a big chunk of the budget gone.
0:23:04 > 0:23:06And then the rest, hopefully, there'll be a bit left over
0:23:06 > 0:23:08off this one.
0:23:08 > 0:23:11Toby plans to have the place ready for the rental market in two months,
0:23:11 > 0:23:16and is hoping doing the renovation himself will teach him new skills.
0:23:17 > 0:23:18So, what about your mates?
0:23:18 > 0:23:21They're 23. Are they doing what you're doing, or...?
0:23:21 > 0:23:22No, not at all.
0:23:22 > 0:23:24What do they think about what you're up to then?
0:23:24 > 0:23:26They think that I'm lucky.
0:23:26 > 0:23:27They do think that I'm lucky.
0:23:27 > 0:23:30- Lucky?- As in the fact that I've got...had the money
0:23:30 > 0:23:32- to be able to do it.- All right, yeah.
0:23:32 > 0:23:35That's the lucky side. Yeah, the accident wasn't the lucky side.
0:23:35 > 0:23:36The almost-death bit is like...
0:23:36 > 0:23:38Yeah, that's the side that they don't deal with.
0:23:38 > 0:23:42- They just see the good...- Yeah. - ..money bit, but...
0:23:42 > 0:23:44They don't see the other bit.
0:23:44 > 0:23:47Can you see yourself sort of getting a property portfolio together?
0:23:47 > 0:23:49That's where I want to be going, hopefully, yeah.
0:23:49 > 0:23:52But it's going to take a few years
0:23:52 > 0:23:54- to start sorting all that out. - Oh, good.
0:23:54 > 0:23:57- I'm quite happy where I am at the minute.- Yeah, good.
0:23:57 > 0:23:58- Well, congratulations.- Thank you.
0:23:58 > 0:24:00- Good luck with it.- Thank you very much.
0:24:00 > 0:24:02- Look forward to seeing how you get on.- Thank you.
0:24:04 > 0:24:07Well, I think Toby got a good buy
0:24:07 > 0:24:09when he bought this particular house.
0:24:09 > 0:24:13But, £7,500, is that enough to sort it out?
0:24:13 > 0:24:16You can find out how he gets on later in the show.
0:24:18 > 0:24:21In London, I've already got the furniture in this flat sorted out.
0:24:21 > 0:24:25Sofa along there, a sofa along here, TV in the corner.
0:24:25 > 0:24:27It does really work.
0:24:28 > 0:24:32And was work the name of the game for Toby in renovating this house
0:24:32 > 0:24:33in Stoke-on-Trent?
0:24:33 > 0:24:36I'm going to do it on my own. Yes.
0:24:36 > 0:24:38- His famous last words, weren't they? - Yeah.- Yeah.
0:24:42 > 0:24:45Let's go back to Maidstone now, where earlier, we saw this old
0:24:45 > 0:24:49funeral directors bought at auction for 82,000.
0:24:50 > 0:24:51It was bought by Debbie.
0:24:51 > 0:24:53She's a property developer who purchased this
0:24:53 > 0:24:56on behalf of a client abroad.
0:24:56 > 0:25:01The plan was to turn the whole place into a two-bedroom flat.
0:25:01 > 0:25:03So, what sort of budget are you looking at?
0:25:03 > 0:25:06- We've got a top budget of 20,000 for this...- OK.- ..property.
0:25:06 > 0:25:09- But I'm hoping not to use all that. - Really?
0:25:09 > 0:25:11See, I was going to say, that's not a huge amount
0:25:11 > 0:25:13to do what I think you need to do here.
0:25:13 > 0:25:14We've...
0:25:14 > 0:25:16I have access to a team of contractors
0:25:16 > 0:25:19that have done a lot of properties for us in the past,
0:25:19 > 0:25:22and they will do things at a very good price.
0:25:22 > 0:25:24And if we start heading up...
0:25:24 > 0:25:26too close to the budget line, then...
0:25:26 > 0:25:29We will come in under budget
0:25:29 > 0:25:30one way or the other.
0:25:30 > 0:25:34Let's catch up with Debbie six months later to find out
0:25:34 > 0:25:36if she's managed to do just that.
0:25:45 > 0:25:48Since you were last here, we've made quite a few significant changes.
0:25:51 > 0:25:53We've basically made a two bed flat.
0:25:53 > 0:25:55The lounge is upstairs.
0:25:57 > 0:25:58The master bedroom is upstairs.
0:26:03 > 0:26:05This is the second bedroom
0:26:05 > 0:26:07which is downstairs with a light well.
0:26:10 > 0:26:12And the kitchen at the back.
0:26:15 > 0:26:20We've put in a bathroom, put totally new plumbing, electrics,
0:26:20 > 0:26:25new heating system. And add to that acoustics and insulation as well.
0:26:25 > 0:26:27So, quite a significant amount of work done here.
0:26:29 > 0:26:31Debbie's gone for a natural feel throughout
0:26:31 > 0:26:33with a white and beige colour scheme
0:26:33 > 0:26:35and reconstructed oak flooring,
0:26:35 > 0:26:38trying to keep the place as much of a blank canvas as possible.
0:26:41 > 0:26:44And I'm glad to see that Debbie did manage to get a light well
0:26:44 > 0:26:47into the downstairs room.
0:26:47 > 0:26:50What we've done is opened up what was an old coal chute.
0:26:50 > 0:26:52All these houses along here have got them because obviously,
0:26:52 > 0:26:56in the old days the cellars were used as a storage place for coal.
0:26:56 > 0:26:59Um, and to make it easier, they just had a little slide
0:26:59 > 0:27:03and a tip that you would pour the coal down.
0:27:03 > 0:27:05So all we've done is open that up so that
0:27:05 > 0:27:06it let's in a bit of light down here.
0:27:06 > 0:27:09It's not a huge amount, but it's better than nothing,
0:27:09 > 0:27:11and it's kind of quirky.
0:27:11 > 0:27:12It's a nice little touch,
0:27:12 > 0:27:15and it's always good to see some creative renovation work.
0:27:15 > 0:27:17And talking of light,
0:27:17 > 0:27:18even though the planning office said
0:27:18 > 0:27:22those original shop windows could go, Debbie's decided to keep them,
0:27:22 > 0:27:26because their size allows the living room to be flooded with light.
0:27:26 > 0:27:29They have though, been replaced with new double-glazed units
0:27:29 > 0:27:32for better soundproofing, and keeping the warmth in.
0:27:32 > 0:27:35And there've been some changes out the back too.
0:27:37 > 0:27:40This little square looks like it would have been easy to form,
0:27:40 > 0:27:42but in actual fact
0:27:42 > 0:27:43it was really quite hard work.
0:27:43 > 0:27:46There's a sheet of ragstone under here
0:27:46 > 0:27:48that's absolutely rock-solid.
0:27:48 > 0:27:52And we did need specialist help to come and remove it,
0:27:52 > 0:27:54or remove part of it
0:27:54 > 0:27:56so that we could get the decking down low enough
0:27:56 > 0:27:58so that it's in a level surface.
0:27:58 > 0:28:02So, this very small area was probably more challenging than
0:28:02 > 0:28:05everything that was done inside.
0:28:05 > 0:28:06But I'm really pleased with it.
0:28:06 > 0:28:10I think it's a nice little area for whoever buys it to come and sit
0:28:10 > 0:28:13in the summer, and sit out here and have a drink.
0:28:13 > 0:28:15So, it was worth it in the end.
0:28:15 > 0:28:18In fact, this was the only aspect of the build that delayed
0:28:18 > 0:28:20the completion time,
0:28:20 > 0:28:21pushing the schedule a month over -
0:28:21 > 0:28:23from six to seven months.
0:28:24 > 0:28:28Now, Debbie had been very determined that she could come in
0:28:28 > 0:28:29under that 20 grand budget.
0:28:29 > 0:28:32So what happened to that?
0:28:32 > 0:28:34Slightly more than that, unfortunately.
0:28:35 > 0:28:40Um, no, we've actually ended up spending 30 on this.
0:28:40 > 0:28:42But it wasn't entirely by accident.
0:28:42 > 0:28:45We got kind of halfway through the project,
0:28:45 > 0:28:48and then an estate agent came out,
0:28:48 > 0:28:52and, um, we had a good discussion about whether or not
0:28:52 > 0:28:56we should do the garden and a few extra bits and pieces
0:28:56 > 0:28:59to hopefully increase the value of it.
0:28:59 > 0:29:02And at the conclusion of that, we decided that, yeah,
0:29:02 > 0:29:04we would spend a little bit more on it to take it up just that
0:29:04 > 0:29:05higher level.
0:29:07 > 0:29:09And there must have been a bit of good karma in the air,
0:29:09 > 0:29:12because even though Debbie went 10,000 over budget,
0:29:12 > 0:29:15there was a nice little earner at the bottom of the garden -
0:29:15 > 0:29:17in the shape of that garage.
0:29:19 > 0:29:24My assistant simply sent out letters to all the neighbours saying that,
0:29:24 > 0:29:26"We've got a garage for sale.
0:29:26 > 0:29:28"Anyone interested?"
0:29:28 > 0:29:31And we ended up having multiple bids for it.
0:29:31 > 0:29:35And the bids went from 22,000 to 28,
0:29:35 > 0:29:38which is what we got for it in the end. 28,000.
0:29:38 > 0:29:40Well, the sale of the garage
0:29:40 > 0:29:43covers nearly all of their renovation costs.
0:29:43 > 0:29:44What a bonus.
0:29:44 > 0:29:46Let's find out if the work Debbie has done here
0:29:46 > 0:29:49has taken this quirky flat to the next level.
0:29:49 > 0:29:52We invited along two property experts to give us
0:29:52 > 0:29:55their thoughts on the flat and the work done.
0:29:55 > 0:29:57The whole standard has been quite simply done.
0:29:57 > 0:30:01It's not excessive, and doesn't need to be
0:30:01 > 0:30:03for the rental market or selling on.
0:30:03 > 0:30:05I think someone'll put their own stamp on it if they want,
0:30:05 > 0:30:07if they do sell.
0:30:07 > 0:30:09I think the layout works really, really well.
0:30:09 > 0:30:12I think the property definitely takes in enough light,
0:30:12 > 0:30:14especially with the two rooms upstairs.
0:30:14 > 0:30:16But also, a bonus with the kitchen,
0:30:16 > 0:30:19with having the garden at the end definitely soaks in all the light.
0:30:19 > 0:30:21And I think they've really made the most of the space.
0:30:21 > 0:30:24That's quite an unusual thing for this type of property,
0:30:24 > 0:30:26as a flat, to have a little garden.
0:30:26 > 0:30:28So, yeah, that's a real benefit.
0:30:28 > 0:30:30On to figures then.
0:30:30 > 0:30:32Debbie has spent 30,000 on the work
0:30:32 > 0:30:34and paid £82,000 at auction.
0:30:34 > 0:30:38So, her total spend here has been £112,000.
0:30:38 > 0:30:43However, she did recoup £28,000 with that garage sale,
0:30:43 > 0:30:47so, in fact, her spend was only £2,000.
0:30:47 > 0:30:51That means her total investment was 84,000.
0:30:51 > 0:30:55I think this property is worth £125,000.
0:30:55 > 0:30:58I would value this property at around £140,000.
0:30:58 > 0:31:02Yeah, I'd say 140 is about right.
0:31:02 > 0:31:06Obviously, I'd like to think 125 is too low.
0:31:06 > 0:31:08We won't be marketing it at that price, so...
0:31:08 > 0:31:11but, yeah, I'd say 140. Yeah.
0:31:11 > 0:31:14145 even,
0:31:14 > 0:31:15because we've got the garden.
0:31:15 > 0:31:18But we'll see, won't we? We'll soon find out.
0:31:20 > 0:31:24If it did sell for that £140,000 valuation,
0:31:24 > 0:31:27then that would give Debbie's client a stonking pre-tax profit
0:31:27 > 0:31:29of 56 grand.
0:31:29 > 0:31:31So, will Debbie be forging ahead with developing
0:31:31 > 0:31:33for herself and for her clients?
0:31:34 > 0:31:38I will be going back to purchase more properties at auction, yes.
0:31:38 > 0:31:41In fact, that is the only way that I buy properties now.
0:31:41 > 0:31:43Because we've got the strategy in place
0:31:43 > 0:31:46for bidding for multiple properties,
0:31:46 > 0:31:48we can pick up the bargains at auction,
0:31:48 > 0:31:51and it's a gamble, but
0:31:51 > 0:31:54it seems to pay, so, yeah definitely...
0:31:58 > 0:32:01Remember Martin talking about London property prices earlier?
0:32:01 > 0:32:05So, how do you find a bargain in London?
0:32:05 > 0:32:08Get very familiar with the fluctuations in the local market.
0:32:08 > 0:32:10It's inevitable in any city,
0:32:10 > 0:32:13that where one area becomes so popular
0:32:13 > 0:32:15that the prices go through the roof
0:32:15 > 0:32:18and people start looking around for a nearby alternative.
0:32:18 > 0:32:21In North London, Kilburn has been seeing that kind of effect
0:32:21 > 0:32:25from North Kensington and Notting Hill for some time now.
0:32:25 > 0:32:28And right next door is Cricklewood.
0:32:28 > 0:32:31Now, prices here are around 10% lower
0:32:31 > 0:32:32than neighbouring West Hampstead.
0:32:32 > 0:32:35And with regeneration money flowing into the area,
0:32:35 > 0:32:37Cricklewood is certainly on the rise,
0:32:37 > 0:32:42which could make it a great place for hunting down property.
0:32:42 > 0:32:45# We're all going to Cricklewood... #
0:32:49 > 0:32:53This London suburb has had many notable residents over the years,
0:32:53 > 0:32:55including, famously, The Goodies,
0:32:55 > 0:32:57who cited their address as
0:32:57 > 0:32:58"No Fixed Abode, Cricklewood".
0:32:59 > 0:33:03But a lot has changed in this London suburb since the '70s.
0:33:03 > 0:33:07And with a £4 billion regeneration scheme under way,
0:33:07 > 0:33:09there's a lot going on in the area.
0:33:09 > 0:33:14And there's one fixed abode that I'm particularly interested in.
0:33:14 > 0:33:18The property I'm here to see is a two-bed ground-floor flat
0:33:18 > 0:33:22with a guide price of £270,000 plus.
0:33:22 > 0:33:24Not the lowest price you'll find for a two-bed flat,
0:33:24 > 0:33:27but since the average asking price for a two-bedder
0:33:27 > 0:33:29around here in Cricklewood
0:33:29 > 0:33:32is well over £400,000,
0:33:32 > 0:33:34that makes it...bit more tempting.
0:33:34 > 0:33:37Let's see if the inside is as promising.
0:33:40 > 0:33:43It's a purpose-built block with allocated parking.
0:33:43 > 0:33:46But the location of this property is key.
0:33:46 > 0:33:48It's near Cricklewood station
0:33:48 > 0:33:51which will have you at Luton Airport in 35 minutes,
0:33:51 > 0:33:55and you're 10 minutes from Kilburn Underground.
0:33:55 > 0:33:57I think it's a real bonus this property's on the ground floor.
0:33:57 > 0:33:59But can I just say,
0:33:59 > 0:34:02this is probably one of the longest corridors
0:34:02 > 0:34:04I've seen in a two-bed flat.
0:34:04 > 0:34:05Can you imagine coming home?
0:34:05 > 0:34:07- SHE SHOUTS:- "Hi, honey, I'm home."
0:34:07 > 0:34:10Goodness me, it must be about 50 feet,
0:34:10 > 0:34:12but it does make it feel spacious.
0:34:12 > 0:34:15Now, I know this property's not changed ownership
0:34:15 > 0:34:17for many, many years, and you can see,
0:34:17 > 0:34:19it's...you know, really, really dated.
0:34:19 > 0:34:22It needs a complete overhaul.
0:34:22 > 0:34:23But this is nice.
0:34:23 > 0:34:25It could be a wonderful lounge,
0:34:25 > 0:34:27because it's got everything you need, lovely ceiling height,
0:34:27 > 0:34:30little picture rails, nice cornicing,
0:34:30 > 0:34:32view out to some green grass,
0:34:32 > 0:34:34which is always good when you're in London.
0:34:34 > 0:34:37And I know this property comes with a garage as well, so,
0:34:37 > 0:34:38another bonus.
0:34:38 > 0:34:41Could be good in here. Just right for the furniture.
0:34:41 > 0:34:44Sofa along there, a sofa along here, TV in the corner.
0:34:44 > 0:34:46It does really work.
0:34:47 > 0:34:51But what's not working for me is this compact kitchen.
0:34:51 > 0:34:54Now, traditionally, purpose-built blocks like these
0:34:54 > 0:34:56usually have really small kitchens,
0:34:56 > 0:35:00which is such a shame because it's just not how we like to live today.
0:35:00 > 0:35:03I am wondering if you did get permission from the freeholder,
0:35:03 > 0:35:06could you knock down the wall between the kitchen and the lounge?
0:35:06 > 0:35:09That would be lovely. You could open the space up.
0:35:09 > 0:35:10You've got some storage here.
0:35:10 > 0:35:12In a funny way, this corridor does work,
0:35:12 > 0:35:15because all the rooms do lead off it perfectly.
0:35:15 > 0:35:16Nice-sized bedroom there,
0:35:16 > 0:35:18rather a small one there,
0:35:18 > 0:35:20and here, I'm just thinking,
0:35:20 > 0:35:22could you knock the loo and the bathroom,
0:35:22 > 0:35:25put a wall up here to create more space?
0:35:25 > 0:35:27More of a luxurious bathroom.
0:35:27 > 0:35:29So, all in all, there's a lot you could do with this flat
0:35:29 > 0:35:31to really bring it up to scratch.
0:35:34 > 0:35:37OK, I've got the virtual sledgehammer out
0:35:37 > 0:35:39and might be getting carried away knocking down walls.
0:35:39 > 0:35:41I know what I'm like.
0:35:41 > 0:35:43And like I said, it's a leasehold flat,
0:35:43 > 0:35:46so that does mean it hinges on the freeholder,
0:35:46 > 0:35:49or the managing agents letting you make the changes.
0:35:49 > 0:35:51But the lease does have a positive side,
0:35:51 > 0:35:53there's still 101 years left on it.
0:35:55 > 0:35:57I'm really struggling to find things to be critical about
0:35:57 > 0:35:59with that property.
0:35:59 > 0:36:00It's not a bad size,
0:36:00 > 0:36:04and, well, it's not going to take a lot of work to get it up to scratch.
0:36:04 > 0:36:08So, let's think about this as a potential investment.
0:36:08 > 0:36:10Who is it going to appeal to?
0:36:10 > 0:36:11It's a two-bed flat,
0:36:11 > 0:36:14so young professionals are a possibility, I suppose.
0:36:14 > 0:36:15And of course, it is on the ground floor,
0:36:15 > 0:36:18which could appeal to young families.
0:36:18 > 0:36:20But for this property, I think,
0:36:20 > 0:36:22it's all about the location.
0:36:22 > 0:36:25You're on the doorstep from plenty of local amenities,
0:36:25 > 0:36:28and your 10-minute stroll to Kilburn Underground.
0:36:28 > 0:36:31And, let's not forget, just 12 minutes along the Jubilee line
0:36:31 > 0:36:34from Bond Street and all the shops, which is fantastic.
0:36:34 > 0:36:36I suppose it makes this a property
0:36:36 > 0:36:38that could have quite a broad appeal.
0:36:40 > 0:36:42With a good location, great potential for refurbishment,
0:36:42 > 0:36:47and even a garage, and a seemingly low guide price of 270,000,
0:36:47 > 0:36:51could this property really be the perfect investment opportunity?
0:36:51 > 0:36:53Or have I missed something?
0:36:54 > 0:36:57Let's see what a local property agent thinks of the flat.
0:36:57 > 0:37:00Would he recommend deploying the sledgehammer?
0:37:01 > 0:37:04With regards to this property, I wouldn't actually change it.
0:37:04 > 0:37:08I would keep the layout, it's perfect for the area, perfect for the market
0:37:08 > 0:37:11that we would be looking to sell the property, or rent the property to.
0:37:12 > 0:37:17Could this really be the perfect property with no faults whatsoever?
0:37:17 > 0:37:19Single bedroom is...it's a little bit small,
0:37:19 > 0:37:23but type of area, you'd probably get a young professional couple,
0:37:23 > 0:37:26second bedroom would be ideally an office.
0:37:26 > 0:37:29It seems even its faults can be turned into positives.
0:37:29 > 0:37:33So, how does all this potential translate into actual figures?
0:37:33 > 0:37:36Once the property was modernised to a very high standard,
0:37:36 > 0:37:41it would achieve, for sale, somewhere in the region of £400,000.
0:37:41 > 0:37:44The rental market in this area is very, very good.
0:37:44 > 0:37:46It should easily achieve somewhere in the region of
0:37:46 > 0:37:49£1500-£1600 per calendar month.
0:37:50 > 0:37:52Ripe for development, I think this flat
0:37:52 > 0:37:56could be full of potential and profit for the right investor.
0:37:56 > 0:37:59Let's see who agreed when it went under the hammer.
0:38:00 > 0:38:02250 anywhere?
0:38:02 > 0:38:05Not going to go below 250.
0:38:05 > 0:38:07250 with you, sitting down.
0:38:07 > 0:38:09255.
0:38:09 > 0:38:10255.
0:38:10 > 0:38:12260, nearly.
0:38:12 > 0:38:14265.
0:38:14 > 0:38:15270.
0:38:15 > 0:38:16275.
0:38:16 > 0:38:17280.
0:38:17 > 0:38:20Yep? 285.
0:38:20 > 0:38:21290.
0:38:21 > 0:38:24With a packed house, there was plenty of bidding on this property.
0:38:24 > 0:38:29And we rejoin at 337,000.
0:38:29 > 0:38:30337.
0:38:30 > 0:38:32338.
0:38:32 > 0:38:34339.
0:38:34 > 0:38:35339. 340.
0:38:36 > 0:38:37341.
0:38:39 > 0:38:41340, first time.
0:38:41 > 0:38:43Second time.
0:38:43 > 0:38:45Third and last time, if you're all done.
0:38:45 > 0:38:48- HE BANGS GAVEL - Sold, 340. Well done.
0:38:48 > 0:38:50Bought for 340,000.
0:38:50 > 0:38:5270 grand more than the guide price.
0:38:52 > 0:38:55It seems the potential in the property wasn't missed
0:38:55 > 0:38:58by the buyer, Yemi.
0:38:58 > 0:39:02Yemi is an acquisition agent with 21 years of experience of
0:39:02 > 0:39:04buying and selling properties.
0:39:04 > 0:39:08And for the last 10 years, he's been running his own property business.
0:39:08 > 0:39:09He's been on the show before
0:39:09 > 0:39:11when he bought, renovated, and sold
0:39:11 > 0:39:13a property in Islington, North London.
0:39:13 > 0:39:17With him at his latest purchase is his cousin Kola,
0:39:17 > 0:39:19who will be project managing the renovation.
0:39:19 > 0:39:22Congratulations. Now, Yemi, we've met you before.
0:39:22 > 0:39:24- You were on the show many moons ago. - Indeed.
0:39:24 > 0:39:27Tell me, what have you been up to since then? Still developing?
0:39:27 > 0:39:29Buying properties, having fun.
0:39:29 > 0:39:32So, now, I know you're an acquisitions agent.
0:39:32 > 0:39:34- Are you still doing that?- Precisely.
0:39:34 > 0:39:36Tell me, what that exactly is.
0:39:36 > 0:39:38Buying properties on behalf of clients,
0:39:38 > 0:39:40ensuring they get what they want,
0:39:40 > 0:39:44looking at where their plan is in the future
0:39:44 > 0:39:47and ensuring we get something to fit in.
0:39:47 > 0:39:49So, you're a property investor.
0:39:49 > 0:39:53Do you buy for clients abroad, or is it mainly people in London?
0:39:53 > 0:39:57Clients abroad and I network clients in the UK,
0:39:57 > 0:40:00like your footballers that wouldn't be able to go.
0:40:00 > 0:40:03They don't have the time to go around, so what we do is
0:40:03 > 0:40:04buy on their behalf.
0:40:04 > 0:40:06- So, high fliers.- Precisely.
0:40:06 > 0:40:09Kola, so I take it that your background is in the building trade.
0:40:09 > 0:40:11- Yes.- And what is it you actually do?
0:40:11 > 0:40:13I mean, how much do you get your hands dirty?
0:40:13 > 0:40:16- Yeah, I'm a carpenter by trade.- OK.
0:40:16 > 0:40:20And I get my hand really dirty, and I don't just stand back,
0:40:20 > 0:40:24I get involved, and I don't just pass instructions to the boys,
0:40:24 > 0:40:25we do the work together.
0:40:25 > 0:40:28Meanwhile, you're in the office, crunching the figures,
0:40:28 > 0:40:30- is that right?- Looking for the next deal.
0:40:30 > 0:40:33Looking for the next deal. Look at you guys in your hot suit.
0:40:33 > 0:40:36So, tell me, what was it about this property that attracted you?
0:40:36 > 0:40:38And do you feel that you got this at a good price?
0:40:38 > 0:40:40I do. Um,
0:40:40 > 0:40:44I started off in the industry in the area in West Hampstead.
0:40:44 > 0:40:48So, I bought properties in this block late '90s for 100,000, 90,000.
0:40:48 > 0:40:49Really?
0:40:49 > 0:40:51So, I know their history.
0:40:51 > 0:40:52We manage properties in the block.
0:40:52 > 0:40:56I know what's happening in regards to the regeneration of Cricklewood.
0:40:56 > 0:40:58So tell me about this property.
0:40:58 > 0:41:00What can you do to turn this into a princess?
0:41:00 > 0:41:03Because at the moment, it's a bit down at heel, isn't it?
0:41:03 > 0:41:06We're looking to bring in more light by dropping the ceiling,
0:41:06 > 0:41:09having more spotlights where necessary.
0:41:10 > 0:41:15We're looking to turn one of the rooms to an en-suite bedroom,
0:41:15 > 0:41:18and by moving the walls around.
0:41:18 > 0:41:20It's quite an interesting property.
0:41:20 > 0:41:22The rooms are fantastic, really spacious,
0:41:22 > 0:41:24but yet, the kitchen's a bit on the small side.
0:41:24 > 0:41:26The bathroom's a bit on the small side, you have a separate loo.
0:41:26 > 0:41:28Is there anything you can do to maybe...
0:41:28 > 0:41:30open the spaces up a little more?
0:41:30 > 0:41:33Well, it depends on the managing agent.
0:41:33 > 0:41:36What we can do is to knock the wall between the bathroom
0:41:36 > 0:41:40- and the toilet together to have a very big bathroom.- Yeah.
0:41:40 > 0:41:42But that, in another sense is, you know,
0:41:42 > 0:41:44when somebody's trying to use the toilet,
0:41:44 > 0:41:46and they have to wait for the... you know.
0:41:46 > 0:41:49And one person's trying to use the bathroom, they have to wait.
0:41:49 > 0:41:51So we might consider not doing that.
0:41:51 > 0:41:54- And you do need to get permission from the freeholder.- Yes.
0:41:54 > 0:41:56- And of course, that can be time-consuming.- Yes.
0:41:56 > 0:41:58We've commenced the process already.
0:41:58 > 0:42:01Another thing with a flat in this location is, um...
0:42:02 > 0:42:06..people that rent here do not really cook, you know.
0:42:06 > 0:42:08- So, the kitchen...- Hold on a minute.
0:42:08 > 0:42:10That's a bit of a... That's a bit of a sweeping statement.
0:42:10 > 0:42:13So, somebody that comes to rent this flat, doesn't want to cook.
0:42:13 > 0:42:17They need the microwave more, and the sink. You know, so...
0:42:17 > 0:42:20- So, are you saying it's going to be for a busy professional?- Precisely.
0:42:20 > 0:42:22- Yes.- And what sort of budget do you think somebody's going to need
0:42:22 > 0:42:23to turn this flat around?
0:42:23 > 0:42:25Because it's actually quite a spacious flat
0:42:25 > 0:42:27and it does need a lot of work.
0:42:27 > 0:42:29I have to give them the budget as well.
0:42:29 > 0:42:31So, you tell him how much he's got to spend?
0:42:31 > 0:42:33- Yeah, they get carried away. - I get carried away.
0:42:33 > 0:42:36I just want to spend, do a nice kitchen, do the flooring,
0:42:36 > 0:42:38and have a wooden flooring, so I'm limited.
0:42:38 > 0:42:40How much budget are you going to give Kola for this?
0:42:40 > 0:42:44I offered him 15, he's trying to itch me up to 20.
0:42:44 > 0:42:45But, we'll see.
0:42:45 > 0:42:48- I'll keep an eye on it.- 25.
0:42:48 > 0:42:50I think you could easily spend £20,000 here.
0:42:50 > 0:42:52I think that's quite a sort of fair price.
0:42:52 > 0:42:56- Yeah, but you know, if I don't start low, it will go up.- Yeah.
0:42:56 > 0:43:01He's already saying 25 now, so I will stick at 15, hoping to get it at 20.
0:43:01 > 0:43:04How long have you got to turn this place around?
0:43:04 > 0:43:06How quickly do you need to get this property rented?
0:43:06 > 0:43:09- And I am assuming you are renting this.- We are renting this.
0:43:09 > 0:43:11- I've given him 10 days to turn it around.- What?!
0:43:11 > 0:43:14- Yeah, and...- Now, hold on a minute. That's 10 days?!
0:43:14 > 0:43:15That's nothing!
0:43:15 > 0:43:17It can take ten days to put in a ceiling.
0:43:17 > 0:43:19Can you do this in ten days?
0:43:19 > 0:43:22I'm asking for three weeks.
0:43:22 > 0:43:25So you want three weeks, you want 25 grand, and he's saying no.
0:43:25 > 0:43:27You can have ten days and 20 grand.
0:43:27 > 0:43:30- Yes.- So...so, how's this going to work, guys?- Come on.
0:43:30 > 0:43:32We'll meet halfway, somewhere.
0:43:32 > 0:43:34- You'll meet halfway.- Somewhere.
0:43:34 > 0:43:35It's going to be interesting.
0:43:35 > 0:43:37I'm really excited to see what you do here,
0:43:37 > 0:43:40and to see if you can turn this place around in ten days.
0:43:40 > 0:43:41Hopefully, if you can.
0:43:41 > 0:43:43Anyway, guys, it's been lovely to meet you.
0:43:43 > 0:43:45Yemi, Kola, good luck with this project.
0:43:45 > 0:43:46I can't wait to see how it all turns out.
0:43:46 > 0:43:49- It's a pleasure, Lucy.- Thank you very much. Thank you.
0:43:50 > 0:43:52Well, with so much experience behind them,
0:43:52 > 0:43:56it sounds like the boys have the property game all sewn up.
0:43:56 > 0:44:00All they have to worry about now is the pressure of producing
0:44:00 > 0:44:02a good return for their investors.
0:44:02 > 0:44:06And that means getting this property turned around and ready
0:44:06 > 0:44:08in just ten days.
0:44:08 > 0:44:09You can find out if they do it
0:44:09 > 0:44:12and how they get on later in the programme.
0:44:16 > 0:44:19Doing up property always takes longer than you think.
0:44:19 > 0:44:22Yeah, there are all sorts of delays that crop up.
0:44:22 > 0:44:26So, have our buyers been held up or have they raced ahead?
0:44:26 > 0:44:27Let's find out.
0:44:29 > 0:44:32We've returned to Hanley in Stoke-on-Trent,
0:44:32 > 0:44:34and the opportunity to invest
0:44:34 > 0:44:38in an open coming area was not missed by 23-year-old Toby.
0:44:38 > 0:44:40He was starting his career in property
0:44:40 > 0:44:43under the watchful eye of his grandfather Alan,
0:44:43 > 0:44:46and had bought this two-bed mid terraced house at auction
0:44:46 > 0:44:48for 38,000.
0:44:48 > 0:44:51Toby was involved in a serious motorbike accident
0:44:51 > 0:44:53just over a year ago,
0:44:53 > 0:44:54but now recovered,
0:44:54 > 0:44:57has decided to invest the compensation money he received
0:44:57 > 0:44:59into properties.
0:44:59 > 0:45:01Toby has got himself a solid house.
0:45:01 > 0:45:03And with no renovation experience,
0:45:03 > 0:45:07plans to install a new kitchen and bathroom himself.
0:45:07 > 0:45:08So, Alan, what about your involvement?
0:45:08 > 0:45:11- Are you going to get...hands dirty?. - I'm just there...
0:45:11 > 0:45:13No, I'm just there in advisor capacity.
0:45:13 > 0:45:15He wants to do it himself.
0:45:15 > 0:45:16- Painting.- Painting.
0:45:16 > 0:45:17THEY LAUGH
0:45:17 > 0:45:19Yeah, he wants to do this project hisself.
0:45:19 > 0:45:21But I shall be there in the wings,
0:45:21 > 0:45:23like if he needs any advice or anything, yeah.
0:45:23 > 0:45:27Toby reckoned a two-month schedule and £7,500 budget
0:45:27 > 0:45:30should be enough for all the changes.
0:45:30 > 0:45:33And once complete, planned to make his money work
0:45:33 > 0:45:35by putting the house on the rental market.
0:45:35 > 0:45:40So, when we returned two months later, how had Toby got on?
0:45:40 > 0:45:42Well, the grim shutters are now gone,
0:45:42 > 0:45:46and are replaced by a new front door and double glazed windows.
0:45:47 > 0:45:51Inside, the front lounge has been given a fresh coat of paint,
0:45:51 > 0:45:54as has the small, rear lounge.
0:45:54 > 0:45:57Both done in the neutral tones that are perfect for the rental market.
0:45:58 > 0:46:02But as for the kitchen, well, the original units are still in place.
0:46:02 > 0:46:04But a good spruce up and redecoration
0:46:04 > 0:46:07has improved this room no end.
0:46:07 > 0:46:09And the same goes for the bathroom.
0:46:09 > 0:46:13The perfectly serviceable white suite now looks crisp and clean.
0:46:13 > 0:46:14Toby had originally thought
0:46:14 > 0:46:17he might replace the kitchen and the bathroom.
0:46:17 > 0:46:19So, what happened to those ideas?
0:46:19 > 0:46:23I haven't gone forward with my plans cos basically,
0:46:23 > 0:46:27put it all on a computer and it came to be quite expensive for everything.
0:46:27 > 0:46:32So, I've decided to save money and cut my losses basically,
0:46:32 > 0:46:33and not ask a bit more
0:46:33 > 0:46:35that would have been justified
0:46:35 > 0:46:38with the bathroom and everything else being done.
0:46:38 > 0:46:40It looks like Toby has quickly grasped
0:46:40 > 0:46:43one of the most important rules of making money from property.
0:46:43 > 0:46:45# If it ain't broke
0:46:45 > 0:46:47# Don't fix it
0:46:47 > 0:46:51# If it's fixed don't try to mix it.
0:46:51 > 0:46:54# Think before you speak
0:46:54 > 0:46:57# And look before you leap... #
0:46:58 > 0:47:00Leaving these units in place
0:47:00 > 0:47:02has certainly saved him some costs.
0:47:02 > 0:47:05But it seems that Toby's plans to do all the work himself
0:47:05 > 0:47:07also had to be shelved.
0:47:08 > 0:47:10- You've done most of the work in this house.- Yes.- Most of the work.
0:47:10 > 0:47:12Yes, I did.
0:47:13 > 0:47:15Well, Toby has been busy.
0:47:15 > 0:47:17He now has a bricklaying qualification,
0:47:17 > 0:47:20and is starting a landscape gardening business.
0:47:20 > 0:47:24But that meant Alan had to face up to those primary colours.
0:47:24 > 0:47:27This kitchen was like bright red.
0:47:27 > 0:47:30And I put the first coat on - nothing.
0:47:30 > 0:47:31Two, three...
0:47:31 > 0:47:34I ended up putting seven coats on it.
0:47:34 > 0:47:36And it's finally covered now, and it looks...
0:47:37 > 0:47:39Liveable and clean and tidy.
0:47:39 > 0:47:41I'm pleased with the results.
0:47:41 > 0:47:42Upstairs, and again,
0:47:42 > 0:47:46the two bedrooms have had a new coat of paint to bring them to life.
0:47:46 > 0:47:49With Alan providing the bulk of the labour,
0:47:49 > 0:47:52Toby got on with project managing the renovation,
0:47:52 > 0:47:55dealing with the installation of the new double glazing units.
0:47:55 > 0:47:57And thankfully, for Toby and Alan,
0:47:57 > 0:48:00there were very few problems to deal with.
0:48:00 > 0:48:02We had trouble with the electrics,
0:48:02 > 0:48:04but we just found out that the contractors
0:48:04 > 0:48:07who'd done the outside of the house had just snipped a wire off
0:48:07 > 0:48:10and it was dangling in the rain, and it was...
0:48:10 > 0:48:13Every time it rained it was blowing the fuses.
0:48:13 > 0:48:16Yeah, but apart from that, it was OK, yeah.
0:48:16 > 0:48:19There was damp coming through from the neighbouring property
0:48:19 > 0:48:22which was solved with a quick chat with the owner.
0:48:22 > 0:48:23And once carpeting has been laid,
0:48:23 > 0:48:27the house will be ready for its first tenant.
0:48:27 > 0:48:30Quite a few people have been posting notes through the door, saying,
0:48:30 > 0:48:31"Ring this number, we want to rent."
0:48:31 > 0:48:34- Yeah.- We've had about three or four.
0:48:34 > 0:48:36So... And that's with no advertising.
0:48:36 > 0:48:38So I think it'll go pretty quick.
0:48:38 > 0:48:39Being a straight,
0:48:39 > 0:48:43no-frills renovation meant the job was completed in only five weeks,
0:48:43 > 0:48:47way within its original two-month timescale.
0:48:47 > 0:48:49But with just those new double glazed units
0:48:49 > 0:48:51and a sturdy back gate
0:48:51 > 0:48:53making up the bulk of the spend,
0:48:53 > 0:48:54how did Toby's budget stand up?
0:48:56 > 0:48:59Original budget was seven-and-a-half...
0:49:00 > 0:49:03Barely done three.
0:49:03 > 0:49:05Just over three.
0:49:05 > 0:49:08Add that total spend to Toby's purchase price of 38,000,
0:49:08 > 0:49:12and his total outlay on the house is just over £41,000.
0:49:15 > 0:49:19So, were Toby's steps to building his portfolio a success?
0:49:19 > 0:49:24Time to find out what two local estate agents think of the house.
0:49:24 > 0:49:27The property is pretty much ready to move into,
0:49:27 > 0:49:30although the finish is on the basic side.
0:49:30 > 0:49:34It's neutral, clean and fresh, and it's what most tenants would expect.
0:49:34 > 0:49:36It's a very nice property.
0:49:36 > 0:49:38They've updated it.
0:49:38 > 0:49:40It's ready to either rent or sell.
0:49:40 > 0:49:42Toby plans to let the house out.
0:49:42 > 0:49:46But do the agents think that's the right way to make money here?
0:49:46 > 0:49:50I would imagine the stronger demand would come from tenants.
0:49:50 > 0:49:53So it would be a good property to maybe have let
0:49:53 > 0:49:54for a period of time,
0:49:54 > 0:49:57and hopefully, if the area does improve as planned,
0:49:57 > 0:50:00there will also be future capital growth in the property.
0:50:00 > 0:50:03What sort of rental return could Toby expect?
0:50:03 > 0:50:06If I was to market the property to let,
0:50:06 > 0:50:10I would recommend a figure of £395 per calendar month.
0:50:10 > 0:50:15I would expect rental income in the region of £400 per calendar month.
0:50:15 > 0:50:17- It's about what we were thinking. - Yeah.
0:50:18 > 0:50:20- Yeah, made my day.- Yeah.
0:50:20 > 0:50:22I'm not surprised that made your day, Toby.
0:50:22 > 0:50:25That's a very healthy yield of nearly 12%.
0:50:25 > 0:50:28But having invested £41,000 on this house,
0:50:28 > 0:50:33if you did fancy reselling it, what could it fetch on the open market?
0:50:33 > 0:50:37I would place this property on the market in the region of £55,000.
0:50:37 > 0:50:40I would put the property onto the market at £60,000,
0:50:40 > 0:50:44with a view to getting between £55,000 and £60,000.
0:50:44 > 0:50:47- That's good, isn't it?- Honestly, I'm impressed with that.- Yes.
0:50:47 > 0:50:51- I didn't think anywhere near.- Yeah. - Anywhere near that.
0:50:51 > 0:50:54Those valuations mean that Toby could, before taxes and fees,
0:50:54 > 0:50:58make a £14,000-£19,000 profit.
0:50:58 > 0:51:00Not bad going.
0:51:00 > 0:51:02But for now, this house is for the rental market.
0:51:02 > 0:51:05And if Toby takes on another renovation project with
0:51:05 > 0:51:10the intention of doing all the work, Alan knows not to go near it.
0:51:10 > 0:51:13Don't believe him. The kid - it's all bravado.
0:51:14 > 0:51:17'I'm going to do it on my own.' Yes.
0:51:17 > 0:51:20- His famous last words, weren't they? - Yeah.- Yeah.
0:51:24 > 0:51:27# Do the Cricklewood shakedown... #
0:51:29 > 0:51:32We're back in the London suburb of Cricklewood,
0:51:32 > 0:51:34where The Goodies used to live.
0:51:34 > 0:51:38But property in Cricklewood is being much more seriously these days.
0:51:42 > 0:51:45Well, I found a seriously good example in this purpose-built block.
0:51:45 > 0:51:48A spacious two-bed ground-floor flat that had
0:51:48 > 0:51:52possibly the longest hallway in a property I think I'd ever seen.
0:51:53 > 0:51:55I've really liked this property.
0:51:55 > 0:51:57But the years had certainly caught up with it,
0:51:57 > 0:52:00and hadn't been modernised in a generation.
0:52:00 > 0:52:04And the split bathroom and toilet was also a hark back to the past.
0:52:04 > 0:52:08It was definitely time for the flat to say hello to the 21st century.
0:52:11 > 0:52:14This is where cousins Yemi and Kola came in.
0:52:16 > 0:52:19Yemi is an acquisition agent with a fondness for hats.
0:52:19 > 0:52:24He bought the flat for a client for 340,000.
0:52:24 > 0:52:26With the help of project manager, Kola,
0:52:26 > 0:52:30the plan was to bring the flat up to top spec for the rental market.
0:52:30 > 0:52:33But when it comes to the thousands that need to be spent,
0:52:33 > 0:52:35what limit was Yemi thinking of?
0:52:35 > 0:52:39I offered him 15, he's trying to itch me up to 20.
0:52:39 > 0:52:40But we'll see.
0:52:40 > 0:52:42- I'll keep an eye on it.- 25.
0:52:43 > 0:52:46Oh, dear, it's the clash of the cousins.
0:52:46 > 0:52:49And how long does Kola get to do the work?
0:52:49 > 0:52:52- I've given him ten days to turn it around.- What?!
0:52:52 > 0:52:54- Yeah, and...- Now, hold on a minute. That's ten days?!
0:52:54 > 0:52:56Can you do this in ten days?
0:52:56 > 0:52:59I'm asking for three weeks.
0:52:59 > 0:53:02Oh, dear. I hope this isn't going to end in tears.
0:53:06 > 0:53:08Three weeks later and we're back.
0:53:08 > 0:53:10How's the transformation gone?
0:53:10 > 0:53:12Has Kola even finished yet?
0:53:14 > 0:53:18Well, the long corridor is looking very smart.
0:53:21 > 0:53:25The living room has been made over into a lighter space.
0:53:27 > 0:53:30The loo has been integrated into the bathroom.
0:53:36 > 0:53:40And the larger bedroom has been made ensuite.
0:53:40 > 0:53:42So, the flat has a second loo.
0:53:45 > 0:53:47But what about the compact kitchen?
0:53:50 > 0:53:53How long did it all take to achieve?
0:53:53 > 0:53:56Yemi's ten days or Kola's three weeks?
0:53:57 > 0:53:59I won.
0:53:59 > 0:54:01Yemi won on this case. Yemi won.
0:54:01 > 0:54:04The managing agents...
0:54:04 > 0:54:06We need their consent
0:54:06 > 0:54:10to do the alteration in terms of the en-suite.
0:54:10 > 0:54:15That took three days, so, I believe they got by about nine days.
0:54:15 > 0:54:18Nine days? I thought three weeks was tight.
0:54:18 > 0:54:20But nine days to do this flat?!
0:54:21 > 0:54:25Well, yeah, I wanted three weeks initially,
0:54:25 > 0:54:28and um... But Yemi said it'll be ten days.
0:54:28 > 0:54:32And then later I got a call from him, he pushed it to nine days.
0:54:32 > 0:54:33Nine days indeed.
0:54:33 > 0:54:35There are still a few bits and pieces to be done,
0:54:35 > 0:54:38but the place has been totally transformed.
0:54:41 > 0:54:45What about the budget? Yemi's 15,000 or Kola's 25,000?
0:54:47 > 0:54:51I had to concede a little bit to him, and
0:54:51 > 0:54:54he got an extra 1,500.
0:54:54 > 0:54:56So, we finished off at 16,500.
0:54:57 > 0:54:59That's still pretty good.
0:54:59 > 0:55:01How did the cousins get along?
0:55:01 > 0:55:03We disagree on most of the things,
0:55:03 > 0:55:07and when I put my reasons through, and
0:55:07 > 0:55:09he come to understand what we were going through,
0:55:09 > 0:55:10and yeah...
0:55:10 > 0:55:14It's hard working with him, but I can still tolerate him.
0:55:14 > 0:55:15HE LAUGHS
0:55:15 > 0:55:18Well, at least Kola's still laughing.
0:55:18 > 0:55:21My duty is to push down, to get the best out of them.
0:55:21 > 0:55:24And with this now, the next project,
0:55:24 > 0:55:28I'll probably look for...give them a shorter timescale.
0:55:28 > 0:55:29Ah, Yemi!
0:55:29 > 0:55:32What are Kola's team going to say about that, I wonder.
0:55:32 > 0:55:35Obviously they'll battle.
0:55:35 > 0:55:37And we'll see who wins.
0:55:38 > 0:55:42OK, joking aside now. What does Yemi think of the flat?
0:55:42 > 0:55:45This flat has not been touched in 24 years.
0:55:45 > 0:55:48We won't need to do anything here for a long time.
0:55:48 > 0:55:52Electricals, plumbing, the carpets,
0:55:52 > 0:55:54the lights are cool,
0:55:54 > 0:55:57as you can see the hallway. So, I'm happy.
0:55:57 > 0:55:59I'm happy with it.
0:56:00 > 0:56:04So, with Yemi happy, we asked two local estate agents
0:56:04 > 0:56:07to cast their professional eyes over the property.
0:56:08 > 0:56:12The property has been almost completely refurbished in terms
0:56:12 > 0:56:13of the work isn't yet complete.
0:56:13 > 0:56:16And when it is, it'll be a very high standard.
0:56:16 > 0:56:18The bathroom, kitchen especially,
0:56:18 > 0:56:20finished to a very high standard,
0:56:20 > 0:56:22decoration throughout, very neutral,
0:56:22 > 0:56:25very light. Perfect refurbishment.
0:56:25 > 0:56:28I think the selling feature of the flat would be the location.
0:56:28 > 0:56:31The fact that it's ground floor, the overall condition.
0:56:31 > 0:56:34and the really nice communal gardens.
0:56:35 > 0:56:39A garage came with the flat but Yemi's taking that out of the equation.
0:56:39 > 0:56:42He'll probably use it as a tool store.
0:56:42 > 0:56:44So, without the garage,
0:56:44 > 0:56:47how would our estate agents value the property?
0:56:47 > 0:56:49If this property was put on the market for sale, I would imagine
0:56:49 > 0:56:55achieving around £390-£400,000, with an asking price of £400,000.
0:56:56 > 0:57:00This was exactly the same estimate as our other estate agent.
0:57:00 > 0:57:04After a total outlay of £356,500,
0:57:04 > 0:57:09that would mean a profit, before tax and expenses,
0:57:09 > 0:57:12of between £33,500 and £43,500.
0:57:13 > 0:57:16What about the rental value though?
0:57:16 > 0:57:19On the current market, this property should achieve a rental figure
0:57:19 > 0:57:22of around £1500-£1600 per calendar month.
0:57:22 > 0:57:24If I put the property on the market for rental,
0:57:24 > 0:57:27I would put it on for £1,650 per calendar month,
0:57:27 > 0:57:29and look to achieve around 1600-1650.
0:57:30 > 0:57:35The estate agent's valuation would mean a yield of 5%-5.5%.
0:57:35 > 0:57:39That should make for a happy client, as well as a happy Yemi.
0:57:39 > 0:57:43So, what about Yemi and Kola as a team for the future?
0:57:43 > 0:57:45We get the results.
0:57:45 > 0:57:48They complain when...
0:57:48 > 0:57:49the work's ongoing,
0:57:49 > 0:57:52but they love it and feel good.
0:57:52 > 0:57:54The team feels good.
0:57:54 > 0:57:56We're growing, we're improving,
0:57:56 > 0:57:58the client is happy.
0:57:58 > 0:57:59Life is good.
0:58:02 > 0:58:05Well, that's it for today. We'll have more tales
0:58:05 > 0:58:08of thrills and spills from the property auctions for you next time.
0:58:08 > 0:58:11So, make sure you keep watching Homes Under The Hammer.
0:58:11 > 0:58:12- Bye for now.- Bye-bye.