0:00:02 > 0:00:03Hello, and welcome to the show.
0:00:03 > 0:00:05All sorts of people buy property at auctions -
0:00:05 > 0:00:07they attract buyers from all walks of life.
0:00:07 > 0:00:11And that's because there are bargains to be had under the hammer.
0:00:37 > 0:00:39Well, there are all sorts of buyers
0:00:39 > 0:00:42and a wide variety of properties available at the auctions.
0:00:42 > 0:00:46Yes, there's a race to get the best bargains and you have to be
0:00:46 > 0:00:50in it to win it, so let's see what's featured on today's programme.
0:00:52 > 0:00:54First up, in Newham, London,
0:00:54 > 0:00:57it's pretty clear what the first job should be.
0:00:57 > 0:01:00Main thing is you need to get rid of it!
0:01:02 > 0:01:06Whilst in Margate, Kent, I won't be giving up the day job any time soon.
0:01:07 > 0:01:11Bit of a gag here - sofa bed. Ha-ha! You like that?
0:01:11 > 0:01:13And in Corby, Northamptonshire,
0:01:13 > 0:01:15it looks like the jobs will be left to the pros.
0:01:15 > 0:01:17Unfortunately, I'm not very handy.
0:01:17 > 0:01:21Only thing handy about me is I live around the corner!
0:01:22 > 0:01:24All these properties have been sold at auction
0:01:24 > 0:01:27and we'll find out who bought them and what they paid for them
0:01:27 > 0:01:29when they went under the hammer.
0:01:29 > 0:01:31All done, sir - it's yours.
0:01:34 > 0:01:37This is Newham - a borough of East London
0:01:37 > 0:01:40and our auction lot is not far from Newham Hospital,
0:01:40 > 0:01:45which could mean lots of potential hospital staff as tenants.
0:01:45 > 0:01:49Well, if you're hoping for somewhere that is close to transport links -
0:01:49 > 0:01:52well, Tube ones anyway - you might be disappointed.
0:01:52 > 0:01:54It is a 20-minute walk to the Tube.
0:01:54 > 0:01:57However, let's just talk about prices,
0:01:57 > 0:02:00because the average price of properties around here
0:02:00 > 0:02:04is £246,000. Mm-hm.
0:02:04 > 0:02:07This place behind me had a guide price of 180,000 - three bed,
0:02:07 > 0:02:11mid-terrace - that's interesting, isn't it?
0:02:13 > 0:02:16A property guided below £200,000 in London
0:02:16 > 0:02:18has got to be worth investigating.
0:02:18 > 0:02:21Let's hope it doesn't disappoint.
0:02:21 > 0:02:24So, whenever there's that level of discrepancy between average
0:02:24 > 0:02:27property prices and the guide price, you've got to be thinking,
0:02:27 > 0:02:30"What am I going to be faced with?"
0:02:30 > 0:02:31Well, actually...
0:02:31 > 0:02:33Doesn't smell damp.
0:02:33 > 0:02:37Obviously in need of a bit of tender loving care, but good size.
0:02:37 > 0:02:41I like the front room - nice feature fireplace.
0:02:41 > 0:02:43Bay window, double glazing.
0:02:43 > 0:02:44I'm looking around though
0:02:44 > 0:02:46and it doesn't look like there's central heating.
0:02:46 > 0:02:49You'll have to factor that into your budget.
0:02:49 > 0:02:51Fairly standard layout - stairs up to your bedrooms,
0:02:51 > 0:02:56into your rear sitting-room. Poke behind here...
0:02:57 > 0:02:58Slightly disappointing!
0:02:58 > 0:03:01I was hoping for something a little more elaborate than that!
0:03:01 > 0:03:05But at least it's an open fire - I love open fires.
0:03:06 > 0:03:08Make a bit of a feature of that.
0:03:08 > 0:03:11Door out to your garden there
0:03:11 > 0:03:14and then from middle-of-the-road,
0:03:14 > 0:03:17"It's OK", kind of scenario, to
0:03:17 > 0:03:21"Oh, no!", when you come in here.
0:03:21 > 0:03:24This, sadly, is the kitchen.
0:03:24 > 0:03:27Built into an extension on the rear of the property
0:03:27 > 0:03:29and as you can see, it is pretty inadequate.
0:03:29 > 0:03:32Sadly, it gets worse, because THAT
0:03:32 > 0:03:35is your bathroom.
0:03:35 > 0:03:37I say bathroom, there's no bath in it,
0:03:37 > 0:03:40but there's a separate loo and this shower area.
0:03:40 > 0:03:43Obviously they've also got signs of damp as well,
0:03:43 > 0:03:47so from what was a reasonably hopeful start,
0:03:47 > 0:03:49eurgh!
0:03:49 > 0:03:50It all went a bit wrong!
0:03:51 > 0:03:53It's a shame, because the rooms
0:03:53 > 0:03:57and the main body of the property are great, with bags of character.
0:03:57 > 0:04:00Then the kitchen and bathroom are crammed in the back,
0:04:00 > 0:04:02almost as an afterthought.
0:04:03 > 0:04:05# Shame
0:04:05 > 0:04:07# Ooh ooh ooh... #
0:04:07 > 0:04:11And with modern living demanding or maybe requiring a big,
0:04:11 > 0:04:14modern kitchen, this just doesn't hack it.
0:04:14 > 0:04:16# Shame
0:04:16 > 0:04:18# Ooh ooh ooh... #
0:04:18 > 0:04:20But hang on - look at this!
0:04:20 > 0:04:23A very substantial garden indeed - in London, no less!
0:04:23 > 0:04:26This is a massive bonus.
0:04:26 > 0:04:29You could easily fit a bigger and better extension in here to house
0:04:29 > 0:04:33a kitchen, maybe even a two-storey one with a bathroom above.
0:04:33 > 0:04:36Or am I getting ahead of myself here?
0:04:36 > 0:04:39Maybe there's room upstairs for the bathroom, so all the space
0:04:39 > 0:04:42in the current extension could be given over to the kitchen?
0:04:42 > 0:04:43Let's see.
0:04:43 > 0:04:46So, upstairs, what are we going to find?
0:04:46 > 0:04:50Well, a little landing area here, you could make it feel a lot less
0:04:50 > 0:04:52claustrophobic by getting rid of that cupboard.
0:04:52 > 0:04:56First of the bedrooms, that's not a bad size.
0:04:56 > 0:04:59It's nice it's got another original fireplace, gives real character.
0:04:59 > 0:05:01We like that.
0:05:01 > 0:05:04But once again, the house gets you all excited
0:05:04 > 0:05:06and then as you progress a little further
0:05:06 > 0:05:08it goes horribly wrong,
0:05:08 > 0:05:10because these are the second and third bedrooms.
0:05:10 > 0:05:13This is the second one - as you can see, it's really small -
0:05:13 > 0:05:15what's that all about?
0:05:15 > 0:05:17It's all stud partition walls. Um...
0:05:18 > 0:05:23The clue as to what is going on can be found, bizarrely,
0:05:23 > 0:05:26through the stud partition.
0:05:26 > 0:05:30Clearly this isn't an original feature, but it does give you
0:05:30 > 0:05:34a chance to do a masterclass in construction and stud partitions.
0:05:34 > 0:05:37Main thing is you need to get rid of it!
0:05:37 > 0:05:40It's divided what was a fairly decent front bedroom into two
0:05:40 > 0:05:44really unacceptable smaller bedrooms.
0:05:44 > 0:05:47You may get a bit more rent for the property with three bedrooms,
0:05:47 > 0:05:49but really - it doesn't work, does it?
0:05:49 > 0:05:53# We belong together
0:05:56 > 0:05:59# We belong together
0:05:59 > 0:06:01# Always true... #
0:06:03 > 0:06:05These rooms definitely need to be reunited
0:06:05 > 0:06:09and I reckon a few hours with a sledgehammer should achieve that.
0:06:09 > 0:06:12The house would be all the better for it and for me,
0:06:12 > 0:06:16this property is a bit of a curate's egg - good in parts,
0:06:16 > 0:06:19with nice period features and some good-sized rooms,
0:06:19 > 0:06:23plus that attractive £180,000 guide price.
0:06:23 > 0:06:25But the layout is really holding it back.
0:06:29 > 0:06:33But what does a local estate agent think of what's on offer here?
0:06:33 > 0:06:36Does she have any thoughts about the layout?
0:06:36 > 0:06:38As a personal preference,
0:06:38 > 0:06:43I would leave the big bathroom downstairs to have a family bathroom
0:06:43 > 0:06:46and have even an en-suite shower room
0:06:46 > 0:06:49upstairs or a separate shower room.
0:06:49 > 0:06:54That's not a bad idea, even if the bathroom remains in the same place -
0:06:54 > 0:06:57perhaps the attraction of an en-suite would entice buyers in.
0:06:57 > 0:07:00But that would mean it would have to be a two-bed house
0:07:00 > 0:07:03and not the pretend three as we have at the moment.
0:07:03 > 0:07:06What effect would that have on the value?
0:07:06 > 0:07:10Once renovated, and in its current layout,
0:07:10 > 0:07:16this property can resale in between 270 and £280,000.
0:07:16 > 0:07:19If this property would be renovated
0:07:19 > 0:07:22and changed to a two-bedroom house,
0:07:22 > 0:07:25this property could be resold
0:07:25 > 0:07:30to a price in between 240 and £260,000.
0:07:32 > 0:07:36Wow! So losing that third bedroom could mean lessening the value
0:07:36 > 0:07:39by 20 or even £30,000.
0:07:39 > 0:07:42That has to be the most expensive partition wall ever!
0:07:42 > 0:07:45However, the agent thought that as a two-bedroom house, it would
0:07:45 > 0:07:47sell faster than a three-bed.
0:07:47 > 0:07:49So, what about the rental values?
0:07:51 > 0:07:54This property can be rented out for
0:07:54 > 0:07:57£1,300 per calendar month.
0:07:57 > 0:08:03As a two-bedroom house, this property can rent out for £1,200
0:08:03 > 0:08:06and it can go up to £1,250 per calendar month.
0:08:07 > 0:08:12So, not particularly close to the Tube, but a nice quiet area
0:08:12 > 0:08:16and I think potential to add real value to this one.
0:08:16 > 0:08:19Let's see who agreed when it went under the hammer.
0:08:22 > 0:08:26Mid-terraced, five-room house. 180.
0:08:26 > 0:08:29Must be worth 180. Standing up. 180.
0:08:29 > 0:08:33181? 181. 182.
0:08:33 > 0:08:34183.
0:08:34 > 0:08:36184.
0:08:36 > 0:08:41- 185.- Well, not surprisingly, this was a popular lot.
0:08:41 > 0:08:45We rejoin the bidding at £200,000.
0:08:45 > 0:08:48200. 201.
0:08:48 > 0:08:50202.
0:08:50 > 0:08:52203.
0:08:52 > 0:08:54204.
0:08:54 > 0:08:56205.
0:08:56 > 0:08:57206.
0:08:57 > 0:08:59205 on my left.
0:08:59 > 0:09:01206 elsewhere?
0:09:01 > 0:09:05If not, £205,000, first time...
0:09:05 > 0:09:07Second time...
0:09:07 > 0:09:10Third and last time, are you all done?
0:09:10 > 0:09:14- BANGS GAVEL - Sold, 205, on my left.
0:09:14 > 0:09:15Hidden from our view,
0:09:15 > 0:09:17but catching the auctioneer's eye,
0:09:17 > 0:09:21for that final bid of £205,000 was Raj.
0:09:21 > 0:09:26We met at the property so she could tell me what she has planned.
0:09:26 > 0:09:30- Raj, great to meet you.- Hi. - Congratulations.- Thank you.
0:09:30 > 0:09:32Tell me why you wanted to buy the house.
0:09:32 > 0:09:35I think it's affordable round here
0:09:35 > 0:09:37and it's good for the rent.
0:09:37 > 0:09:39That's the plan, is it? Rent it out?
0:09:39 > 0:09:42- Yes.- What is it about the area that particularly appeals?
0:09:42 > 0:09:46I've got a few properties around here, so I know the area quite well.
0:09:46 > 0:09:49Newham Hospital is quite close by and
0:09:49 > 0:09:52the East London University is round here, so...
0:09:52 > 0:09:55Raj used to be a hospital supervisor,
0:09:55 > 0:09:58so she knows well the market that could be tapped here.
0:09:58 > 0:10:01However, property is now where she earns her living.
0:10:01 > 0:10:04I've got a son with special needs and after he was born,
0:10:04 > 0:10:08I couldn't go back to work and then, thinking about his future
0:10:08 > 0:10:13and mine as well, I started my own business.
0:10:13 > 0:10:16Raj has refurbished properties for resale as well as building
0:10:16 > 0:10:20a rental portfolio in this area, which has helped her find
0:10:20 > 0:10:24a more flexible way of life to meet her 14-year-old son Aaron's needs,
0:10:24 > 0:10:27as well as look after her two daughters, Riya and Hannah.
0:10:28 > 0:10:30What's the sort of goal?
0:10:30 > 0:10:33So my son can have after us about £5,000 monthly
0:10:33 > 0:10:38coming in from somewhere, he doesn't have to rely on somebody,
0:10:38 > 0:10:41so he's got enough money coming in to look after himself.
0:10:41 > 0:10:44I quite enjoy it myself, as well, doing these things.
0:10:44 > 0:10:48I get to relax because sometimes you do get stressed thinking
0:10:48 > 0:10:52about him, but when I'm working I just get relaxed, because I love it.
0:10:52 > 0:10:55I've never thought of property developing as relaxing!
0:10:55 > 0:10:59You can sure get passionate about it, excited by it, frustrated by it!
0:10:59 > 0:11:02But relaxing?! Each to their own, Raj!
0:11:02 > 0:11:06I assume she's got a very relaxing project plan for this
0:11:06 > 0:11:08stress-free property?
0:11:08 > 0:11:10So what are you going to do with it?
0:11:10 > 0:11:13All the decorations, everything - replastering, rewiring,
0:11:13 > 0:11:17- new kitchen, new bathroom. - Bathroom, keeping it where it is?
0:11:17 > 0:11:21Temporarily, I think so. I've got a few ideas I need to get around.
0:11:21 > 0:11:23I'd like to have a big kitchen
0:11:23 > 0:11:26- because the kitchen is quite small at the moment.- Yeah.
0:11:26 > 0:11:29I'm not doing any planning permission at the moment.
0:11:29 > 0:11:33Because I'm renting, I don't want to keep it for eight weeks empty.
0:11:33 > 0:11:36- OK.- Maybe for the future, I'll move the bathroom upstairs.
0:11:36 > 0:11:38What about upstairs?
0:11:38 > 0:11:42Obviously, three bedrooms, but one that's very small.
0:11:42 > 0:11:45It's originally a two-bedroom house, I know that because most of
0:11:45 > 0:11:47the houses on this road are two bedrooms,
0:11:47 > 0:11:50- so we are turning back to two bedrooms.- You are, OK.
0:11:50 > 0:11:53What difference does that make in terms of the rent?
0:11:54 > 0:11:56It's not a big difference.
0:11:56 > 0:11:58If it's a two bedroom, nice, good-sized,
0:11:58 > 0:12:02- people like that more than having a small three-bed.- Yes.
0:12:02 > 0:12:05So what budget have you got for this place?
0:12:05 > 0:12:07Around 18,000.
0:12:07 > 0:12:10£18,000 is a pretty healthy budget
0:12:10 > 0:12:13and should mean even if the kitchen and bathroom
0:12:13 > 0:12:17remain in the same place, they will be of much improved quality.
0:12:17 > 0:12:19Her husband Jagdash
0:12:19 > 0:12:23and daughter Riya have come to look around Raj's new project.
0:12:23 > 0:12:26She'll also be getting plenty of help from her other daughter, Hannah.
0:12:28 > 0:12:32The girls normally like doing the painting, stuff like that.
0:12:32 > 0:12:36- Oh! How old are they?- One is ten, one is seven.- Oh, great!
0:12:36 > 0:12:39They get involved - want to know what colour I'm doing,
0:12:39 > 0:12:44- what's happening.- Listen, congratulations. Good luck with it.
0:12:44 > 0:12:47- We'll see how you get on. - Thanks, bye.
0:12:47 > 0:12:49Well, people get involved in property developing
0:12:49 > 0:12:51and investing for all sorts of reasons, in this case
0:12:51 > 0:12:56Raj using it to secure the financial future for her family.
0:12:56 > 0:12:57Good stuff.
0:12:57 > 0:13:00In terms of not building an extension above the existing one
0:13:00 > 0:13:02straightaway, is that the right decision?
0:13:02 > 0:13:05And how about that tight timescale?
0:13:05 > 0:13:07Will she get it done in time?
0:13:07 > 0:13:09You can find out later in the show.
0:13:13 > 0:13:17Now, do you fancy leaving London behind for a trip to the seaside?
0:13:17 > 0:13:21Well, traditionally, when Londoners wanted to do just that, they
0:13:21 > 0:13:24made the short trip here, to Margate.
0:13:24 > 0:13:27I've visited it a lot over the years and I've watched it transform
0:13:27 > 0:13:31in front of my eyes with the help of various regeneration schemes,
0:13:31 > 0:13:35it's now a smart seaside town with blue flag beaches.
0:13:35 > 0:13:38# Down by the seaside
0:13:40 > 0:13:44# See the boats go sailing... #
0:13:45 > 0:13:46As with all regeneration,
0:13:46 > 0:13:50the hope is the benefits will spread to surrounding areas.
0:13:50 > 0:13:53About a mile and a half from the centre of Margate is
0:13:53 > 0:13:56Cliftonville, which has seen some hard times.
0:13:56 > 0:13:58It's a place with some gorgeous buildings,
0:13:58 > 0:14:03so my hope is that we'll see this area get a new lease of life too.
0:14:05 > 0:14:08Oh, how I do like to be beside the seaside!
0:14:08 > 0:14:12No, I know you might not be able to see it on a foggy day
0:14:12 > 0:14:16like today, but it is actually just at the end of the road.
0:14:16 > 0:14:19The property I'm here to see is THIS - it looks a little shabby
0:14:19 > 0:14:22from the outside, but it's already been
0:14:22 > 0:14:28converted into five dwellings, all for a guide price of 115 to 120,000.
0:14:28 > 0:14:31I'm going to head inside and take a look around.
0:14:34 > 0:14:37Well, this is actually a fairly pleasant hallway.
0:14:37 > 0:14:40It is a bit dated with the old woodchip,
0:14:40 > 0:14:44but it's a good size and there's still a bit of character left here.
0:14:44 > 0:14:47I know that flat number one at the back is already tenanted,
0:14:47 > 0:14:51so I'll pop into flat number three and have a look around.
0:14:51 > 0:14:53# Cos I'm free... #
0:14:53 > 0:14:57This lot also comes with the freehold of the whole building,
0:14:57 > 0:15:00so if you want to alter it or clean up that shabby exterior,
0:15:00 > 0:15:04or those communal areas, any planning issues aside,
0:15:04 > 0:15:06you have a lot of freedom.
0:15:06 > 0:15:10# I'm free to do what I want
0:15:10 > 0:15:12# Any old time
0:15:15 > 0:15:16# I said I'm free... #
0:15:16 > 0:15:19So, into flat number three and, er...
0:15:19 > 0:15:22this is it. It is just one room.
0:15:22 > 0:15:23So what have we got in here?
0:15:23 > 0:15:27Nice, high ceilings, beautiful cornicing, nice fireplace.
0:15:27 > 0:15:31Fabulous bay window, a very small kitchenette,
0:15:31 > 0:15:33couple of cupboards and a sink.
0:15:33 > 0:15:36And a bit of a gag here - sofa bed.
0:15:36 > 0:15:38Ha-ha! Do you like that?
0:15:38 > 0:15:41I know the washing facilities are upstairs on the first floor.
0:15:41 > 0:15:46This really is it. I'm going to check out the flat number two now.
0:15:48 > 0:15:53So, like next door, it's just one room, not that much space.
0:15:53 > 0:15:57Another sofa bed(!) We've got a nice fireplace here...
0:15:57 > 0:16:02I'm just thinking it might be worth knocking these two little
0:16:02 > 0:16:05studios into a one-bed flat.
0:16:05 > 0:16:08You might not get as much rent, but I think you'd get a longer
0:16:08 > 0:16:12term tenant and it would just be a much nicer property to live in.
0:16:13 > 0:16:16At the moment, they're only divided by partition walls,
0:16:16 > 0:16:20so it would be easy to take these down and rearrange the space.
0:16:21 > 0:16:24As you know, I would always recommend having a chat
0:16:24 > 0:16:28with your local planning authority to get their guidance in case
0:16:28 > 0:16:29you come a cropper.
0:16:33 > 0:16:36Now, I already mentioned the one-bedroom tenanted flat
0:16:36 > 0:16:37on the ground floor.
0:16:37 > 0:16:40Moving up onto the first floor,
0:16:40 > 0:16:43you have the communal facilities for the two bedsits I've just
0:16:43 > 0:16:47looked at, including shower, toilet and washing machine.
0:16:49 > 0:16:51There's another one-bed flat on this floor
0:16:51 > 0:16:53and then you head up to the top floor
0:16:53 > 0:16:55and a fifth one-bed flat.
0:16:56 > 0:16:59Replacing the dated carpets and giving the walls
0:16:59 > 0:17:04a lick of paint would really brighten up these communal areas.
0:17:04 > 0:17:07However, even as they stand, the three currently occupied
0:17:07 > 0:17:10one-bed flats bring in an impressive income
0:17:10 > 0:17:15of £13,780 per annum.
0:17:15 > 0:17:19It's not that often that I visit tenanted properties on this show,
0:17:19 > 0:17:21but they do come up at auction.
0:17:21 > 0:17:24On the plus side, this means you already have a regular income
0:17:24 > 0:17:26from the rent that's being paid
0:17:26 > 0:17:30and you're not left with an empty property just sitting there.
0:17:30 > 0:17:34But there are also some negatives to consider. For starters, you
0:17:34 > 0:17:38could inherit problematic tenants that are behind in their rent.
0:17:38 > 0:17:41You may have to honour long-term agreements,
0:17:41 > 0:17:44halting any refurbishment plans that you may have.
0:17:44 > 0:17:47So there's lots to consider - just make sure you do your homework,
0:17:47 > 0:17:49read the legal pack
0:17:49 > 0:17:53because it's not always as straightforward as it may seem.
0:17:53 > 0:17:56This property has a licence from the local authorities to be
0:17:56 > 0:18:00a house of multiple occupancy, or HMO.
0:18:00 > 0:18:04Now, the licence is awarded only once all building regs, communal
0:18:04 > 0:18:09facilities and safety precautions meet the required standards.
0:18:09 > 0:18:11There is a push in this area for more family dwellings,
0:18:11 > 0:18:15so HMO licences are difficult to come by -
0:18:15 > 0:18:17so already having one is a bonus.
0:18:20 > 0:18:23At a guide price of just 115 to 120,000,
0:18:23 > 0:18:26we could be looking at a little money-spinner,
0:18:26 > 0:18:29so we asked the local property expert for his opinion.
0:18:29 > 0:18:32From what I've seen having looked around the property,
0:18:32 > 0:18:34it's reasonably clean and tidy, but it is quite dated.
0:18:34 > 0:18:37I consider the two bedsits quite small,
0:18:37 > 0:18:42so I would suggest that you look at putting that into one apartment.
0:18:42 > 0:18:45But that depends on local planning regulations, of course.
0:18:45 > 0:18:50Assuming you left them as bedsits, how much rental could you make?
0:18:50 > 0:18:54Once renovated, I would suggest this would probably not let for any
0:18:54 > 0:18:57more than £200 per calendar month.
0:18:57 > 0:19:01If these two were put into one one-bedroom flat, I would
0:19:01 > 0:19:06imagine it would let for somewhere around £400 per calendar month.
0:19:06 > 0:19:08Those figures confirm what I said earlier -
0:19:08 > 0:19:11having it as a one-bed flat wouldn't make you any more money.
0:19:11 > 0:19:15In fact, it would cost you to do the conversion back to a one-bed,
0:19:15 > 0:19:18but I reckon it would be more likely to rent
0:19:18 > 0:19:20and be a much nicer place to live.
0:19:20 > 0:19:23And a happy tenant means a happy landlord in my book!
0:19:23 > 0:19:26Let's work on the basis that we turned the two studios
0:19:26 > 0:19:29into a one-bed flat - what could it sell for?
0:19:31 > 0:19:36A one-bedroom flat here could resell for approximately £65,000.
0:19:37 > 0:19:40Add that to the three other one-bed flats
0:19:40 > 0:19:45and four times £65,000 equates to £260,000.
0:19:45 > 0:19:50Much more profitable than the 175 to 180,000 that our agent
0:19:50 > 0:19:53estimated the property would be worth
0:19:53 > 0:19:57if you were to sell it as one after basic renovations.
0:19:57 > 0:20:00If you buy this property for the top end of the guide price,
0:20:00 > 0:20:04you still get a rental yield of 11%,
0:20:04 > 0:20:07without even lifting a finger to do any work!
0:20:07 > 0:20:10This sounds like it could be a great investment for someone -
0:20:10 > 0:20:13let's see who that was when we went to the auction.
0:20:13 > 0:20:17Good-looking property there, guided at 115 to 120.
0:20:17 > 0:20:20Are you going to come in at 115,000?
0:20:20 > 0:20:22115? I'd have thought it was worth every penny of that.
0:20:22 > 0:20:26Give me 110, then - set me on the way. 110, I'm obliged.
0:20:26 > 0:20:29At 115, sitting down. 120, it's against you.
0:20:29 > 0:20:31120, if you like.
0:20:31 > 0:20:34120, do I see? Take 118 if you like.
0:20:34 > 0:20:36If not, 118, second row back.
0:20:36 > 0:20:40120, sir. 120, can I say? 120.
0:20:40 > 0:20:45And two? 122. And four. 124.
0:20:45 > 0:20:47It's against you. 124.
0:20:47 > 0:20:51At £122,000, I have for the first time, second row back.
0:20:51 > 0:20:56I'm looking for 124. It will be sold for the second time at £122,000.
0:20:56 > 0:21:00124 I've got. 126. You were pretty close to it.
0:21:00 > 0:21:03Another one? 126. 128?
0:21:03 > 0:21:04128, if you like.
0:21:04 > 0:21:08If not, at £126,000 going for the first time,
0:21:08 > 0:21:10£126,000,
0:21:10 > 0:21:12for the second time...
0:21:12 > 0:21:15Third and final time, second row back, 126,000, all done.
0:21:15 > 0:21:18- GAVEL BANGS - You bought it, sir - 126.
0:21:22 > 0:21:25The successful bidders were husband-and-wife team Steve
0:21:25 > 0:21:28and Louise, with a bid of 126,000.
0:21:28 > 0:21:32From nearby Sittingbourne, Steve, who runs a shop-fitting company
0:21:32 > 0:21:36and his florist wife Louise started up a small property company
0:21:36 > 0:21:39around ten years ago and have been gradually adding
0:21:39 > 0:21:41to their portfolio once or twice a year.
0:21:45 > 0:21:46I met the pair of them
0:21:46 > 0:21:49back at their latest acquisition to find out their plans.
0:21:52 > 0:21:54- Steve and Louise, congratulations.- Thank you.
0:21:54 > 0:21:56How did you find this property?
0:21:56 > 0:21:59We look through the local auctions, see what's coming up
0:21:59 > 0:22:02and we identified five properties in the area on that particular auction.
0:22:02 > 0:22:05Came down and this was our preferred choice,
0:22:05 > 0:22:09- so we're delighted to be successful. - What was it that appealed so much?
0:22:09 > 0:22:10Mainly the yield.
0:22:10 > 0:22:11That was quite interesting -
0:22:11 > 0:22:14even with this empty property, we're still managing 11%
0:22:14 > 0:22:17potentially, subject to what we finally paid at the auction.
0:22:17 > 0:22:20And what do you like about Margate?
0:22:20 > 0:22:22We've just seen how up-and-coming
0:22:22 > 0:22:24it is and watch your programme quite a lot!
0:22:24 > 0:22:26Good!
0:22:26 > 0:22:29Down on the seafront, all the little shops
0:22:29 > 0:22:31and boutiques are really quite pretty.
0:22:31 > 0:22:33It really has changed over the years.
0:22:33 > 0:22:37- Do you feel this is a great place for you guys to invest at the moment?- We're certainly interested.
0:22:37 > 0:22:42Our main property portfolio is in the Medway towns, but we have
0:22:42 > 0:22:46seen that we're achieving better results in this part of the world,
0:22:46 > 0:22:50so it's certainly where we're focusing our attention going forward.
0:22:50 > 0:22:52So what can you tell us about the tenants
0:22:52 > 0:22:55and tenancy agreements of the people that were already here?
0:22:55 > 0:22:58I know a lot of people might have been put off by the fact that
0:22:58 > 0:23:01- people already live in this building.- It was a concern.
0:23:01 > 0:23:05We don't know too much about how long they've been here, so that was a
0:23:05 > 0:23:10risk we factored in to the deal, but we consider it a risk worth taking.
0:23:10 > 0:23:12So now you've bought the property at auction, do you think that will
0:23:12 > 0:23:15pose any problems, the fact that people already live here?
0:23:15 > 0:23:18So far, since we took the property on Monday,
0:23:18 > 0:23:23two of the tenants have been and introduced themselves, so we're only
0:23:23 > 0:23:28waiting for one other tenant to go into our agent and liaise with them.
0:23:29 > 0:23:32Steve and Louise still have some things to go over,
0:23:32 > 0:23:34as although they read the legal pack,
0:23:34 > 0:23:37some details were marked out for data protection purposes.
0:23:37 > 0:23:39So that will need checking through,
0:23:39 > 0:23:42but the couple employ a local agent to look after their properties,
0:23:42 > 0:23:45who they think can organise things quickly.
0:23:47 > 0:23:51Do you have any plans to move the tenants on or are they free to stay if they want to?
0:23:51 > 0:23:55- Are you going to be upgrading all their properties?- We'd like them to stay, most definitely.
0:23:55 > 0:23:58If it's their home, we'll upgrade it for them, make it a nicer environment.
0:23:58 > 0:24:02- We certainly would welcome them staying.- So that's a win-win situation all round.
0:24:02 > 0:24:04- That's good news to hear. - Let's hope so.
0:24:04 > 0:24:08Smiles all round, then - especially for the existing tenants!
0:24:08 > 0:24:10# Ooh, baby
0:24:10 > 0:24:12# Something tells me
0:24:12 > 0:24:15# I'm on a winner with you
0:24:15 > 0:24:17# Ooh... #
0:24:17 > 0:24:19So, what are the couple's plans for the property?
0:24:19 > 0:24:23This is currently situated as two bedsits,
0:24:23 > 0:24:26which...potentially the yield would be better,
0:24:26 > 0:24:30but it's not really for us, so Louise and I have discussed it
0:24:30 > 0:24:33and we're going to turn this into another one-bedroom flat.
0:24:33 > 0:24:37We aim to do that over the next six to eight weeks.
0:24:37 > 0:24:39We'll look at all the common areas and bring them
0:24:39 > 0:24:41up to something a little nicer,
0:24:41 > 0:24:44give the outside facade a face-lift, as well.
0:24:44 > 0:24:48Steve and Louise have a budget of 15 to 20,000
0:24:48 > 0:24:51and plan to use contractors to do the work.
0:24:51 > 0:24:55But it will still be a team effort.
0:24:55 > 0:24:57So who's going to play what role here?
0:24:57 > 0:25:00I'll be overseeing what the builders are doing
0:25:00 > 0:25:04and how they're getting on and Steve will basically be doing the rest.
0:25:04 > 0:25:08As I'm down here today, I'll do the designs, take the measurements
0:25:08 > 0:25:11so we can order the materials and get everything ready for the guys
0:25:11 > 0:25:14so there's no delays on that part.
0:25:14 > 0:25:16Guys, I'm really excited for you, congratulations.
0:25:16 > 0:25:19- This has been a good purchase - well done.- Thank you very much.
0:25:19 > 0:25:21Thank you.
0:25:21 > 0:25:23Well, Steve and Louise might have done this before,
0:25:23 > 0:25:27but it's certainly still not without its risks.
0:25:27 > 0:25:29Let's hope there aren't any complications along the way.
0:25:29 > 0:25:33You can see how the couple get on later on in the programme.
0:25:35 > 0:25:37Still to come, in Corby, Northamptonshire,
0:25:37 > 0:25:39an old favourite of mine turns up.
0:25:41 > 0:25:44Polystyrene tiles! Don't you love them?
0:25:46 > 0:25:48Whilst beside the seaside in Margate,
0:25:48 > 0:25:52will the sun be shining down on Steve and Louise's project?
0:25:58 > 0:26:01But first, it was in the London Borough of Newham where
0:26:01 > 0:26:04I came across a mid-terraced, three-bedroomed house.
0:26:05 > 0:26:09Well, I say three-bedroom, but this was originally a two-bed house
0:26:09 > 0:26:13that had been divided up to create an extra bedroom.
0:26:13 > 0:26:16You may get a bit more rent for the property with three bedrooms,
0:26:16 > 0:26:18but really - it doesn't work, does it?
0:26:18 > 0:26:20Yes, that dividing wall needed to go.
0:26:20 > 0:26:24The downstairs layout wasn't too clever, either.
0:26:24 > 0:26:27With the bathroom only accessible by passing through the kitchen,
0:26:27 > 0:26:29it was a house with issues.
0:26:31 > 0:26:33But for property developer Raj,
0:26:33 > 0:26:36this was nothing she hadn't tackled before.
0:26:36 > 0:26:40Indeed, she owned similar types of houses in the area.
0:26:42 > 0:26:47She snapped this one up for 205,000 to add to her burgeoning
0:26:47 > 0:26:49property portfolio.
0:26:49 > 0:26:51Tell me how you got into it.
0:26:51 > 0:26:53I've got a son with special needs
0:26:53 > 0:26:56and after he was born I couldn't go back to work,
0:26:56 > 0:27:00and thinking about his future - and mine as well -
0:27:00 > 0:27:03I started my own business.
0:27:03 > 0:27:07And the aim was that her rental portfolio would generate
0:27:07 > 0:27:09enough income to look after her son.
0:27:09 > 0:27:13This was also to be a family affair, with her husband, brother
0:27:13 > 0:27:15and two daughters all lined up to help,
0:27:15 > 0:27:19alongside her regular team of professional tradesmen.
0:27:19 > 0:27:22And with a comprehensive renovation and layout change planned,
0:27:22 > 0:27:24it was going to be all hands to the pump,
0:27:24 > 0:27:27with a budget of £18,000
0:27:27 > 0:27:30and a timescale of just four weeks!
0:27:30 > 0:27:35And now we're back with Raj to check on progress.
0:27:56 > 0:28:00Oh, my goodness! What an unbelievable transformation!
0:28:00 > 0:28:02The lounge has been knocked through
0:28:02 > 0:28:04to take some space off the rear reception room.
0:28:09 > 0:28:12And remember that sorry kitchen extension with that shower room
0:28:12 > 0:28:14at the end of it?
0:28:16 > 0:28:18Well, it's not so sorry now!
0:28:18 > 0:28:21The kitchen now occupies all of the rear extension
0:28:21 > 0:28:23and has doors leading out to the garden.
0:28:26 > 0:28:27And the bathroom - where's that?
0:28:30 > 0:28:35Well, that now has its own access in what was the rear reception room.
0:28:35 > 0:28:36What a clever layout change!
0:28:47 > 0:28:49And upstairs, remember that back bedroom
0:28:49 > 0:28:51that had been divided in two?
0:28:53 > 0:28:55Well, it isn't any more.
0:28:55 > 0:29:00# Reunited and it feels so good
0:29:02 > 0:29:06# Reunited cos we understood... #
0:29:07 > 0:29:10And with the other bedroom finished with similar finesse,
0:29:10 > 0:29:14upstairs is oh, so much better.
0:29:14 > 0:29:17And if the house itself wasn't amazing enough, look at the garden.
0:29:24 > 0:29:26Truly stunning.
0:29:26 > 0:29:29And get this - all these changes were done
0:29:29 > 0:29:32in just 3½ weeks.
0:29:32 > 0:29:33Whoa!
0:29:33 > 0:29:35So is Raj pleased with the outcome?
0:29:39 > 0:29:41I think it's turned out quite good.
0:29:41 > 0:29:45I'd like to have a bigger lounge, but there wasn't any other way
0:29:45 > 0:29:48we could do a bigger kitchen and nice bathroom as well.
0:29:48 > 0:29:50But if it's a nice kitchen, nice bathroom,
0:29:50 > 0:29:53you get a lot more money as well.
0:29:53 > 0:29:56Yes, definitely kitchens and bathrooms sell properties
0:29:56 > 0:29:58and make it easier to get good tenants.
0:29:58 > 0:30:01But usually, more bedrooms add value too,
0:30:01 > 0:30:04so is she worried about losing the extra bedroom?
0:30:04 > 0:30:07At the moment, because we're keeping the property,
0:30:07 > 0:30:12there's not a big rental difference between two and three bedrooms, but
0:30:12 > 0:30:16in the future, if we want to sell it, then we will extend and then sell.
0:30:18 > 0:30:22Raj employed a team of builders she has used on other projects to
0:30:22 > 0:30:25do the bulk of the work, but her family also helped,
0:30:25 > 0:30:29particularly with the decoration and the dressing of the house.
0:30:29 > 0:30:33And not only did she complete the work under her four-week timescale,
0:30:33 > 0:30:36she also did it under budget,
0:30:36 > 0:30:41spending just £17,000, which on top of her £205,000 purchase price,
0:30:41 > 0:30:46takes Raj's total costs to £222,000.
0:30:52 > 0:30:54I think it's all incredible,
0:30:54 > 0:30:57but what did two local estate agents think?
0:30:57 > 0:31:01Starting with the agent who saw it in its previous shape.
0:31:01 > 0:31:04I do like the layout of the property.
0:31:04 > 0:31:07I like the kitchen, because it is modern and new.
0:31:07 > 0:31:10I like the bathroom, as well - they've put a bit of a style
0:31:10 > 0:31:15and the living room as you go in, looks very nice.
0:31:15 > 0:31:16Where they've manoeuvred things around,
0:31:16 > 0:31:18the bathroom is now in a much better position.
0:31:18 > 0:31:21The finish is exceptionally good, as well.
0:31:21 > 0:31:23I like the contrasting colours they've used and think it
0:31:23 > 0:31:26will appeal to most people in this marketplace at the moment.
0:31:26 > 0:31:31Raj wants to hang on to the house, adding it to her rental portfolio.
0:31:31 > 0:31:35But how would a property she's invested £222,000 on so far
0:31:35 > 0:31:38fare on the current resale market?
0:31:39 > 0:31:43This property could resale under current market conditions
0:31:43 > 0:31:48in between 270 and £280,000.
0:31:48 > 0:31:51The resale value on the property, I think with how the work has
0:31:51 > 0:31:56been carried out, you're looking at around 270 to £280,000.
0:31:56 > 0:31:58I was thinking it might be 250,
0:31:58 > 0:32:01so I'm really happy with that.
0:32:01 > 0:32:06So a potential pre-tax profit of between 48 and £58,000.
0:32:06 > 0:32:10But what about those all-important rental values?
0:32:10 > 0:32:15The property could be rented at a price range between 1,100
0:32:15 > 0:32:18and £1,200 per calendar month.
0:32:18 > 0:32:21You'll be looking around about £1,100-£1,200 per calendar month.
0:32:21 > 0:32:25So what does Raj make of those rental valuations?
0:32:25 > 0:32:29I'm confident that by the end of the week it'll be rented at 1,250.
0:32:30 > 0:32:33If she manages to get 1,250 per calendar month,
0:32:33 > 0:32:36that would mean a yield of nearly 7% -
0:32:36 > 0:32:39not bad for a four-week project!
0:32:39 > 0:32:41I can't get over how much she's managed to achieve
0:32:41 > 0:32:43in such a small time.
0:32:43 > 0:32:48So what is Raj's secret, apart from a team of very reliable builders?
0:32:50 > 0:32:54My advice is, if you want to do something, you can do it.
0:32:54 > 0:32:58So...if you go 100% your heart and brain into it,
0:32:58 > 0:32:59you can do anything.
0:32:59 > 0:33:03# You can do magic, magic, magic
0:33:03 > 0:33:06# You can do magic, baby... #
0:33:06 > 0:33:09And Raj's philosophy has won through.
0:33:09 > 0:33:12As we've just heard, she's let the house as predicted
0:33:12 > 0:33:15for £1,250 per calendar month.
0:33:15 > 0:33:18# You can do magic, magic, magic
0:33:18 > 0:33:20# Like you can do magic, baby... #
0:33:27 > 0:33:29Meet the steel man,
0:33:29 > 0:33:34a monument to the industrial past of Corby in Northamptonshire.
0:33:34 > 0:33:36Corby grew from a village in the 1930s
0:33:36 > 0:33:40when a new steelworks drew people from all across the country,
0:33:40 > 0:33:43especially the west coast of Scotland.
0:33:44 > 0:33:48The Scottish community thrived here and in the 1950s,
0:33:48 > 0:33:51expansion of the town led to a further influx of Scots
0:33:51 > 0:33:52from across the border,
0:33:52 > 0:33:55earning the town the nickname "Little Scotland".
0:33:57 > 0:34:01Today, the steelworks have long gone, but the town is still
0:34:01 > 0:34:05thriving and in 2010, was set to be the fastest-growing
0:34:05 > 0:34:09town in England - sounds like a good place to invest in property.
0:34:11 > 0:34:14So, what property made it into the auction catalogue
0:34:14 > 0:34:17and onwards to a happy buyer?
0:34:17 > 0:34:20Well, it's this neat '60s mid-terrace and already I'm thinking
0:34:20 > 0:34:23I like that tiled frontage!
0:34:23 > 0:34:26Guide price was £65,000 plus.
0:34:27 > 0:34:28In we jolly well potter!
0:34:32 > 0:34:34There's a nice little entrance area here
0:34:34 > 0:34:37and through that way to the kitchen area.
0:34:37 > 0:34:40This way through into the lounge.
0:34:40 > 0:34:44I do like that little front bit - it's somewhere to put your stuff
0:34:44 > 0:34:47when you come in - your hats and coats and bags.
0:34:47 > 0:34:49Lounge, not a bad size,
0:34:49 > 0:34:53gas-fire - loads of light pouring in which is good to see.
0:34:53 > 0:34:54Through to the back.
0:34:54 > 0:35:00Little dining area over that way with some nice patio doors
0:35:00 > 0:35:01out into the garden.
0:35:01 > 0:35:05You immediately sort of start thinking I wonder if there's
0:35:05 > 0:35:08some walls that could come out to make it a bit more open plan?
0:35:08 > 0:35:11Especially in here - this is the kitchen. As you can see,
0:35:11 > 0:35:15it needs a bit of work, but it's a nice-sized space.
0:35:15 > 0:35:18This wall, though, would be number one candidate to go,
0:35:18 > 0:35:21because you've got this strange little utility area there.
0:35:21 > 0:35:24Open that up to give a much nicer space.
0:35:24 > 0:35:27But before you start knocking any walls out, there's one feature
0:35:27 > 0:35:30of the property that does need to be addressed.
0:35:32 > 0:35:35Polystyrene tiles! Don't you love them?
0:35:35 > 0:35:39This house is actually a bit of a museum to them.
0:35:39 > 0:35:43Different polystyrene tiles on the ceilings in most of the rooms
0:35:43 > 0:35:47and you may well be staring at these in your property, in which case,
0:35:47 > 0:35:50they need to come off - they are a massive fire risk.
0:35:50 > 0:35:54If you do have a fire in your house, what happens is they basically
0:35:54 > 0:35:59just melt, dripping plastic, foamy whatever-it-is onto whoever is in...
0:35:59 > 0:36:01They are a disaster.
0:36:01 > 0:36:03Seriously, if you're just living in a house,
0:36:03 > 0:36:06please think about getting rid of them.
0:36:06 > 0:36:09And if you're a landlord, there are guidelines to follow which
0:36:09 > 0:36:13will be checked if your property requires a fire certificate.
0:36:13 > 0:36:17They are only permitted IF they meet relevant fire resistant standards,
0:36:17 > 0:36:20IF they aren't on an escape route or stairs,
0:36:20 > 0:36:25IF the tiled area doesn't exceed more than half of the floor area
0:36:25 > 0:36:27and IF it isn't more than 20m squared.
0:36:27 > 0:36:29Too many ifs already -
0:36:29 > 0:36:31in my opinion, they're not worth the bother.
0:36:35 > 0:36:37Moving on upstairs, there is
0:36:37 > 0:36:40a small landing that leads off to four bedrooms.
0:36:40 > 0:36:44Two slightly larger rooms and two smaller.
0:36:45 > 0:36:47But all good, usable spaces.
0:36:47 > 0:36:50The bathroom is, again, functional.
0:36:50 > 0:36:54Not much space to manoeuvre, but you can fit in all the basics -
0:36:54 > 0:36:55sink, toilet and bath,
0:36:55 > 0:36:58which can't be said for all the properties I see!
0:36:59 > 0:37:01All in all, it's a good standard property.
0:37:01 > 0:37:04It has everything you could need including this rather
0:37:04 > 0:37:05colourful downstairs toilet.
0:37:07 > 0:37:09A bit more space would always be nice
0:37:09 > 0:37:12and maybe knocking down walls could open things up a bit, but that
0:37:12 > 0:37:17means additional costs and this property does function quite well.
0:37:17 > 0:37:19So, with a guide price of 65,000,
0:37:19 > 0:37:22what did a local property expert think of it?
0:37:24 > 0:37:25I think with the layout of the home,
0:37:25 > 0:37:27it's already got a very good flow.
0:37:27 > 0:37:30Certainly upstairs with the bedroom accommodation,
0:37:30 > 0:37:32the landing space works extremely well.
0:37:32 > 0:37:35Ground floor wise, you could open up between the dining room
0:37:35 > 0:37:38and kitchen. The kitchen/breakfast room is already a good size.
0:37:38 > 0:37:40Having a separate utility area,
0:37:40 > 0:37:43you could incorporate either one of those two areas into it,
0:37:43 > 0:37:46giving it an open-plan kitchen/family room, which is very popular at the moment.
0:37:46 > 0:37:49And what other work does he think needs doing to the property?
0:37:49 > 0:37:52To start with, it would be the central heating system,
0:37:52 > 0:37:55there doesn't appear to be any form of heating in the home.
0:37:55 > 0:37:57The polystyrene ceiling tiles are an issue,
0:37:57 > 0:38:00they would need to be removed and the ceilings re-skimmed.
0:38:00 > 0:38:03In terms of the wiring system in the home as well,
0:38:03 > 0:38:04it seems to be dated,
0:38:04 > 0:38:08so the new consumer unit and a rewire in the property would be required.
0:38:08 > 0:38:12So what can all this work convert into in terms of profit?
0:38:12 > 0:38:14In the current marketplace,
0:38:14 > 0:38:17I believe this property having been refurbished to a good standard as
0:38:17 > 0:38:22described, it would fetch something in the region of £120-£125,000.
0:38:22 > 0:38:24Wow! That's nearly twice the guide price.
0:38:24 > 0:38:28Can you get such a good return on the rental, as well?
0:38:28 > 0:38:30For the rental market, I believe this property would achieve
0:38:30 > 0:38:34something in the region of £650-£675 per calendar month.
0:38:35 > 0:38:37That's all sounding quite healthy,
0:38:37 > 0:38:40so get rid of the ceiling tiles, open up the kitchen
0:38:40 > 0:38:44and you could have a nice little bundle of profit on your hands.
0:38:44 > 0:38:47Let's see who got this possible gift of a property
0:38:47 > 0:38:49when it went under the hammer.
0:38:49 > 0:38:51A three-bedroomed townhouse -
0:38:51 > 0:38:53who's got 64 to start me?
0:38:53 > 0:38:5464? Thank you.
0:38:54 > 0:38:56£64,000.
0:38:56 > 0:38:5865? Thank you, 65.
0:38:58 > 0:39:0165, seated at 66.
0:39:01 > 0:39:0467. 68, sir?
0:39:04 > 0:39:0668 is bid. At 68,
0:39:06 > 0:39:10500. 68,500?
0:39:10 > 0:39:1269. 500?
0:39:12 > 0:39:1370,000.
0:39:13 > 0:39:15It's not a dear property.
0:39:15 > 0:39:17500. 71.
0:39:17 > 0:39:2071. 71,500?
0:39:20 > 0:39:2171,500.
0:39:21 > 0:39:2472? 72 is bid.
0:39:24 > 0:39:25It's got to go.
0:39:25 > 0:39:29At 72, it's worth one more. at £72,000,
0:39:29 > 0:39:30500 somewhere else?
0:39:30 > 0:39:33At 72,000, once,
0:39:33 > 0:39:35twice, third time.
0:39:35 > 0:39:38Sold at 72,000, thank you.
0:39:38 > 0:39:41The hammer fell at £72,000.
0:39:41 > 0:39:45Buyer John came to Corby when he was 18 months old
0:39:45 > 0:39:49and like many before him, worked in the steel industry.
0:39:49 > 0:39:52Now he runs a taxi business. I met him back at the property
0:39:52 > 0:39:54to tell me more.
0:39:54 > 0:39:57- John, great to meet you.- And you. - Congratulations.- Thanks very much.
0:39:57 > 0:39:59Tell me why you wanted to buy this place.
0:39:59 > 0:40:01Just an investment, really.
0:40:01 > 0:40:04It's something I've been looking at for a little while now
0:40:04 > 0:40:07and the housing market is starting to pick up a bit, I thought
0:40:07 > 0:40:10- it was a good time to invest. - So of all the ones you could have picked, why this one?
0:40:10 > 0:40:12I looked at it three or four days
0:40:12 > 0:40:15before the auction and was quite impressed.
0:40:15 > 0:40:16It's needing a bit of work done,
0:40:16 > 0:40:20but I think there's room for an investment to make a profit.
0:40:20 > 0:40:22Tell me what you're going to do to sort it out.
0:40:22 > 0:40:26Downstairs, we're looking at maybe knocking the dining room wall
0:40:26 > 0:40:29out and making it a kitchen/diner.
0:40:29 > 0:40:31- Mm-hm.- There's a room adjacent to the kitchen -
0:40:31 > 0:40:36we'll probably keep that as a utility room, I think. Living room...
0:40:36 > 0:40:40Basically everything needs cosmetically tidying up, really.
0:40:40 > 0:40:42And electrics, probably!
0:40:42 > 0:40:45Well, yeah! Electrics will be the first...
0:40:45 > 0:40:48I've got my cousin coming in tomorrow, who's an electrician,
0:40:48 > 0:40:53so he's going to start work on that because obviously it'll need rewired.
0:40:53 > 0:40:56- Obviously pesky polystyrene tiles everywhere.- Mm.
0:40:56 > 0:40:59- I presume they're coming off? - Blast from the past, aren't they?
0:40:59 > 0:41:01Yes, they've got to come off.
0:41:01 > 0:41:04I don't know what state the ceilings will be like under it,
0:41:04 > 0:41:08but they'll probably need skimmed. The whole lot will be coming down.
0:41:08 > 0:41:10What's the budget?
0:41:10 > 0:41:14We're looking between 15 and £17,000 I think.
0:41:14 > 0:41:19That should make it nice and respectable, for prospective rentals.
0:41:19 > 0:41:25- Yeah.- The rewiring, I'm hoping for mate's rates from my cousin, so!
0:41:25 > 0:41:28I'd HOPE so! It's not mate, it's family!
0:41:28 > 0:41:33So I'm looking around about that, I'd be quite happy.
0:41:33 > 0:41:36And are you going to get your hands dirty? Do you do a lot of the work?
0:41:36 > 0:41:39I'd like to say I was, but unfortunately I'm not very handy!
0:41:39 > 0:41:43The only thing handy about me is I live round the corner!
0:41:43 > 0:41:46I'm not a trader or anything,
0:41:46 > 0:41:50so I'll be calling friends in and local tradesmen
0:41:50 > 0:41:53will do most of the work in here.
0:41:53 > 0:41:56I'll probably help ripping the garden up and sorting that out,
0:41:56 > 0:41:58but no - a project manager, I think!
0:41:58 > 0:42:02Sometimes it is best to leave it to the professionals!
0:42:02 > 0:42:05It's always handy if you are handy,
0:42:05 > 0:42:07but it's always good to know your limits.
0:42:07 > 0:42:10You might begrudge getting the professionals in, but you've
0:42:10 > 0:42:13got to weigh up how long it will take you
0:42:13 > 0:42:15and how good a finish you would do.
0:42:15 > 0:42:19A bad finish can cost you money and time is money in property.
0:42:19 > 0:42:22John has a timescale of four to five months
0:42:22 > 0:42:24and I think he's making a wise choice.
0:42:27 > 0:42:29And then, once it's done, on the rental market.
0:42:29 > 0:42:33- And you, back in the auction? - Possibly! I've got the bug, now.
0:42:33 > 0:42:35I found it really interesting.
0:42:35 > 0:42:38It was the first time I'd ever been and I really found it interesting.
0:42:38 > 0:42:40I was there with my brother-in-law
0:42:40 > 0:42:43- and we were joking about being on the show, actually!- Were you?!
0:42:43 > 0:42:45So I was quite shocked when I was approached!
0:42:45 > 0:42:48- Were you happy with what you paid for this?- Absolutely, yes.
0:42:48 > 0:42:54I mean, I went there with the thought of... I think the guide price was 65.
0:42:54 > 0:42:59- I would have kicked myself if I hadn't gone.- Good. Congratulations.
0:42:59 > 0:43:02- Thanks very much, Martin.- Look forward to seeing how you get on.
0:43:02 > 0:43:03Cheers.
0:43:03 > 0:43:07Well, I think John's got a good house for his first investment property.
0:43:07 > 0:43:09How's he going to get on sorting it out?
0:43:09 > 0:43:11A reasonable budget,
0:43:11 > 0:43:14reasonable timescale - it should all go to plan.
0:43:14 > 0:43:17You never know! You can find out later in the show.
0:43:20 > 0:43:23Well, it's been several months now since we last saw those properties.
0:43:23 > 0:43:26Has any work been done? Do they look exactly the same?
0:43:26 > 0:43:28Let's go back and find out.
0:43:28 > 0:43:30SEAGULLS CRY
0:43:32 > 0:43:37Back now to a spot I used to holiday at as a little girl. Sunny Margate!
0:43:37 > 0:43:39It was here that I met Steve and Louise,
0:43:39 > 0:43:43who had bought this property for 126,000.
0:43:43 > 0:43:46Consisting of three one-bed flats and two bedsits,
0:43:46 > 0:43:49it already had tenants in the three flats,
0:43:49 > 0:43:52so we were only able to see the two bedsits.
0:43:52 > 0:43:55But what I did see showed real potential
0:43:55 > 0:43:59and experienced renovators Steve and Louise agreed.
0:44:03 > 0:44:06What are you going to do to change this?
0:44:06 > 0:44:10This is currently situated as two bedsits, which potentially,
0:44:10 > 0:44:15the yield would be better, but it's not really for us.
0:44:15 > 0:44:19Louise and I are going to turn this into another one-bedroom flat,
0:44:19 > 0:44:23which we aim to do over the next six to eight weeks.
0:44:23 > 0:44:26We'll look at all the common areas and bring them up to
0:44:26 > 0:44:30something nicer, give the outside facade a face-lift, as well.
0:44:32 > 0:44:35Having existing tenants could be problematic,
0:44:35 > 0:44:37but Steve and Louise were relaxed about it,
0:44:37 > 0:44:42plus they own the freehold to the building, which was a big bonus.
0:44:42 > 0:44:46We've returned two months later to see how the couple have progressed.
0:45:09 > 0:45:12As promised, the two poky bedsits have been
0:45:12 > 0:45:17turned into a desirable one-bed flat, as Louise explains.
0:45:18 > 0:45:22So originally, this would have been the entrance hall to bedsit two
0:45:22 > 0:45:24and three.
0:45:24 > 0:45:28So the doors were here, this is bedsit two, bedsit three.
0:45:28 > 0:45:32Partition wall here and here, which we've taken down.
0:45:32 > 0:45:34We've put the beautiful kitchen in
0:45:34 > 0:45:39and the new en suite. So we've made it a beautiful one-bedroom flat.
0:45:41 > 0:45:45Along with the new kitchen and en suite, they've also created a nice
0:45:45 > 0:45:46outdoor decked area
0:45:46 > 0:45:50that leads off the bedroom, which is a lovely bonus.
0:45:50 > 0:45:51True to their word,
0:45:51 > 0:45:55Steve and Louise have also repainted the corridor and communal stairway,
0:45:55 > 0:45:58as well as re-carpeting throughout,
0:45:58 > 0:46:01therefore improving it for the existing tenants.
0:46:03 > 0:46:06The communal area, which once housed the toilet
0:46:06 > 0:46:09and shower for the bedsits has now been turned into a kitchen,
0:46:09 > 0:46:12thanks to a discovery that Steve wasn't expecting.
0:46:17 > 0:46:20We're in the communal area. Our plans slightly changed here
0:46:20 > 0:46:22because previously there was a WC and toilet in this room.
0:46:22 > 0:46:24We realised that behind that wall,
0:46:24 > 0:46:28there's actually a complete bathroom, so that's no longer required.
0:46:28 > 0:46:30We've had that all removed.
0:46:30 > 0:46:33Turns out one of the locked doors we couldn't get access to
0:46:33 > 0:46:38on the first floor housed a shower room used by flat five,
0:46:38 > 0:46:41so that has changed the way they're now looking at this space.
0:46:41 > 0:46:44If they carry out a plan to put a shower room in that flat,
0:46:44 > 0:46:47then they can turn the current utility area,
0:46:47 > 0:46:51newly-discovered shower room, toilet and hall into a small,
0:46:51 > 0:46:55separate fifth unit, meaning five units rather than four -
0:46:55 > 0:47:00potentially improving any possible rental yield for Steve and Louise.
0:47:03 > 0:47:08As with our first visit, flat one, four and five are occupied,
0:47:08 > 0:47:12although flat four did have a change of tenant - which gave Louise and
0:47:12 > 0:47:16her sister the opportunity to nip in and give it a quick lick of paint.
0:47:19 > 0:47:23The whole building now is looking brighter, fresher
0:47:23 > 0:47:24and more desirable -
0:47:24 > 0:47:28perfect for the rental market that the couple want to attract.
0:47:28 > 0:47:31# Now come and meet me
0:47:31 > 0:47:34# On the sunny road... #
0:47:34 > 0:47:36I'm most pleased with the property.
0:47:36 > 0:47:40I couldn't really visualise how it was going to look
0:47:40 > 0:47:43and when we came down and the wall had been knocked down...
0:47:43 > 0:47:47The guys have worked so hard and we just walked in and it's...
0:47:47 > 0:47:51We're so pleased with all of it. It looks absolutely fantastic.
0:47:51 > 0:47:54I took the role, originally I did the drawings of the kitchen
0:47:54 > 0:47:55and bathroom and layout
0:47:55 > 0:47:58and then I very cleverly passed it all on to Louise who's been down here
0:47:58 > 0:48:01running around after materials, making sure it all happens.
0:48:01 > 0:48:04- Done a fantastic job!- Thank you!
0:48:04 > 0:48:06Yeah, quite right, too!
0:48:06 > 0:48:10Louise and the team of contractors have done a great job.
0:48:10 > 0:48:12But how is their original timescale looking?
0:48:15 > 0:48:17Our initial thoughts were it would take six to eight weeks
0:48:17 > 0:48:18to do the property.
0:48:18 > 0:48:21We started a little bit behind because of having to renovate
0:48:21 > 0:48:25flat four and then my main business has been really busy
0:48:25 > 0:48:28and I used the contractors that we employed here to
0:48:28 > 0:48:31work on my main business, so in fact, we did start late,
0:48:31 > 0:48:34but this whole property was done in just under two weeks.
0:48:34 > 0:48:37When we initially purchased the property,
0:48:37 > 0:48:40we set ourselves a target of between £15-£20,000 as a budget
0:48:40 > 0:48:43without really having a good look at the property.
0:48:43 > 0:48:45We've incurred a little bit of extra expense
0:48:45 > 0:48:48because we have now done flat four, which we weren't expecting to
0:48:48 > 0:48:51at that point, but we're coming in around about the £13,500 mark.
0:48:51 > 0:48:55But we have still got some bills to come in and we've still got
0:48:55 > 0:48:59some more works that we intend to do to further improve the property.
0:48:59 > 0:49:00So, as it stands, Louise
0:49:00 > 0:49:05and Steve have invested a total of £139,500
0:49:05 > 0:49:08and their plans to rent the properties out are going really well,
0:49:08 > 0:49:11with all the flats being tenanted -
0:49:11 > 0:49:13including the newly-renovated one-bed,
0:49:13 > 0:49:15which has a tenant moving in shortly.
0:49:19 > 0:49:22So, with these seaside properties bobbing along nicely,
0:49:22 > 0:49:26it will be interesting to see what two local property experts
0:49:26 > 0:49:31think of the renovation - based on the bits they have access to, of course.
0:49:31 > 0:49:33It's my second time to the property.
0:49:33 > 0:49:36The changes they've made have been very good, they're quite basic
0:49:36 > 0:49:38but they've improved the property immensely.
0:49:38 > 0:49:41So, the agent who first saw it thinks the property has improved,
0:49:41 > 0:49:45but improved ENOUGH? What about values?
0:49:45 > 0:49:48If the whole property were to be sold with the four dwellings, I
0:49:48 > 0:49:53would expect it to achieve probably no more than about £200-£210,000.
0:49:53 > 0:49:57If the owners were considering selling this property as a whole,
0:49:57 > 0:50:02I would consider a marketing value of £270,000.
0:50:02 > 0:50:06We had an initial offer just after completion of 250,
0:50:06 > 0:50:10so I think somewhere between 250 and 270 now we've done the work,
0:50:10 > 0:50:13considering the yield, would be a reasonable figure.
0:50:13 > 0:50:16210 may be a little on the low side!
0:50:17 > 0:50:21So, if we take that offer of 250,000, that would mean
0:50:21 > 0:50:26a potential pre-tax profit of a huge £110,500,
0:50:26 > 0:50:28minus taxes and expenses.
0:50:28 > 0:50:31But even in the face of that stunning profit,
0:50:31 > 0:50:34the pair still only have eyes for rental.
0:50:37 > 0:50:40In terms of this particular flat for rental, I would expect it to
0:50:40 > 0:50:45achieve approximately £400-£450 per calendar month.
0:50:45 > 0:50:51For rental income per month, it would be £400.
0:50:51 > 0:50:53So, that would boost the already impressive yield
0:50:53 > 0:50:56of 11% for the other flats in the property
0:50:56 > 0:50:59to a whopping 13%,
0:50:59 > 0:51:02making this project a HUGE success -
0:51:02 > 0:51:05and Louise a very proud lady.
0:51:07 > 0:51:09I've really enjoyed it, actually.
0:51:09 > 0:51:12Steve's done a lot of them in the past and this has been...
0:51:12 > 0:51:15I've had more of a rein on this one,
0:51:15 > 0:51:18so it's been my little project, really. So it's been really good.
0:51:18 > 0:51:19Really enjoyed it.
0:51:22 > 0:51:24A great result in Margate, there.
0:51:24 > 0:51:27So, will it be the same story here in Corby,
0:51:27 > 0:51:29where earlier I met John,
0:51:29 > 0:51:32who was also hoping that the rental market would provide healthy
0:51:32 > 0:51:36returns for him when he bought this four-bed, mid-terraced house?
0:51:37 > 0:51:41The housing market is starting to pick up a bit and I thought it was a good time to invest.
0:51:41 > 0:51:44So of all the ones you could've picked, why this one?
0:51:44 > 0:51:45Just price, really.
0:51:45 > 0:51:48I looked at it three or four days before the auction
0:51:48 > 0:51:50and was quite impressed.
0:51:50 > 0:51:51It's needing a bit of work done,
0:51:51 > 0:51:55but I think there's room for an investment to make a profit.
0:51:55 > 0:51:59Five months later, we've returned to find out how it all went.
0:52:03 > 0:52:05I'm glad to see that John took my advice
0:52:05 > 0:52:09and got rid of that wall between the kitchen and the dining room.
0:52:10 > 0:52:13No expense has been spared - the finish is lovely,
0:52:13 > 0:52:16with high-quality fixtures and fittings and it's
0:52:16 > 0:52:21great to see that those polystyrene ceiling tiles are no more.
0:52:23 > 0:52:27It was a necessity to get rid of them anyway, because they're a fire
0:52:27 > 0:52:30hazard, so we had no choice other than to get rid of them.
0:52:30 > 0:52:33It's been a lot of hard work and I've had some good help from friends
0:52:33 > 0:52:34and family and that.
0:52:34 > 0:52:38A lot of professional builders have been in, friends of mine
0:52:38 > 0:52:42and they've done a great job, and it's been great to watch it from
0:52:42 > 0:52:45being a bit tired looking to what it's turned out to be
0:52:45 > 0:52:47so I'm really pleased with it.
0:52:49 > 0:52:52But it hasn't all been plain sailing.
0:52:52 > 0:52:55The biggest challenge had to be the garden - it took us
0:52:55 > 0:52:57five or six skips to empty the place.
0:52:57 > 0:53:00We had roots to dig out, three trees to bring down, bushes and of course
0:53:00 > 0:53:04when we brought the bushes down, we had the high winds in January.
0:53:04 > 0:53:08That took all the fencing out so added more to the budget,
0:53:08 > 0:53:12having to replace the fences. But I'm pleased with the result,
0:53:12 > 0:53:14really pleased with the way it's finished.
0:53:14 > 0:53:17John is right to be pleased, it's a cracking job.
0:53:17 > 0:53:22So I'm wondering if he turned out to lack handiness, as he claimed?
0:53:22 > 0:53:24I done a wee bit - I was out in the garden,
0:53:24 > 0:53:28helping a couple of times and knocking the walls down.
0:53:28 > 0:53:31Just generally tidying up, really. But I've enjoyed it.
0:53:31 > 0:53:35It's the first time I've ever done anything like this and whether I've
0:53:35 > 0:53:39got the bug, I don't know - I might have, but I really enjoyed doing it.
0:53:39 > 0:53:41Yes, he's got the bug, all right!
0:53:41 > 0:53:45John intended this house as a rental, so is that still the plan?
0:53:45 > 0:53:47I've got somebody moving in next week,
0:53:47 > 0:53:51so I've got a tenant ready, which is pleasing.
0:53:51 > 0:53:54We're probably going to look at the next ten years, I'd imagine,
0:53:54 > 0:53:56renting it out if we can.
0:53:56 > 0:54:01Possibly selling from there and dare I say, semi-retirement? I don't know!
0:54:01 > 0:54:04- We'll see.- I like John's thinking.
0:54:04 > 0:54:09Now, he'd given himself a budget of between 15 and £17,000 -
0:54:09 > 0:54:10how did he get on with that?
0:54:10 > 0:54:16On the budget side, I went over, but we had the hidden extras to pay
0:54:16 > 0:54:22for - some of the windows needed replaced, some of the exterior doors.
0:54:22 > 0:54:26The fencing after the wind had blown it down in January...
0:54:26 > 0:54:29It took me up to the £20,000 mark.
0:54:29 > 0:54:31Oops! These things quickly add up,
0:54:31 > 0:54:34but at least he stuck to his five-month timescale - just.
0:54:36 > 0:54:38It took us the full five months,
0:54:38 > 0:54:40in fact we only finished it about ten hours ago!
0:54:40 > 0:54:43Touching up the paintwork and things like that.
0:54:43 > 0:54:45A general tidy up, really,
0:54:45 > 0:54:48because a lot of dust with the plastering being done.
0:54:48 > 0:54:51But ten hours ago we finished, so we couldn't be much nearer!
0:54:51 > 0:54:52So, yeah, happy.
0:54:53 > 0:54:59So, that £72,000 sale price added to £20,000 renovations costs
0:54:59 > 0:55:02come to £92,000.
0:55:02 > 0:55:07Did local property experts think all that hard work was worth it?
0:55:07 > 0:55:10The fittings are immaculate throughout.
0:55:10 > 0:55:13The flooring, the kitchen, the bathroom,
0:55:13 > 0:55:18- all the fittings are second to none. - The finish is very, very high.
0:55:18 > 0:55:22In fact, I would say he's gone a little bit over-the-top for the area
0:55:22 > 0:55:25that the property was within, but the finish is outstanding.
0:55:25 > 0:55:29High-class and he will get the money that he deserves for the home.
0:55:29 > 0:55:33I think that the kitchen/diner is far better this way
0:55:33 > 0:55:36than it would have originally been with a separate dining room.
0:55:36 > 0:55:38So, we're all in agreement, then.
0:55:38 > 0:55:42John has spent a total of £92,000 on this property
0:55:42 > 0:55:46and he does intend to rent, but we have to ask what it could sell for.
0:55:46 > 0:55:49I mean, it would be rude not to.
0:55:49 > 0:55:53I would place this property for sale onto the market for £130,000
0:55:53 > 0:55:56to achieve a figure very close to that.
0:55:56 > 0:55:59If I was to market this property, I'd place it onto the market
0:55:59 > 0:56:00for £130,000,
0:56:00 > 0:56:06with a view of achieving anywhere between £125,000-130,000.
0:56:06 > 0:56:09Yeah, pleased with that. That's a good profit.
0:56:09 > 0:56:12I mean, the amount of work we put into it, I think it's a
0:56:12 > 0:56:16realistic price. That's round about what we thought, anyway.
0:56:16 > 0:56:19Even that lowest estimate would give John a potential profit
0:56:19 > 0:56:21of £33,000,
0:56:21 > 0:56:23minus the usual taxes and expenses.
0:56:23 > 0:56:26But as he already has a tenant lined up,
0:56:26 > 0:56:29what do our experts think he could achieve on the rental market?
0:56:29 > 0:56:31For rental, I would place this property onto
0:56:31 > 0:56:38the market at between 625 and £675 per calendar month.
0:56:38 > 0:56:41I think the landlord could achieve on the rental market
0:56:41 > 0:56:46anywhere between 625 and £675 per calendar month.
0:56:46 > 0:56:48At the lowest figure,
0:56:48 > 0:56:51that would give John a healthy yield of 8%.
0:56:51 > 0:56:53Yes, that's fair enough.
0:56:53 > 0:56:57I've got a tenant moving in very shortly who's offered more money than
0:56:57 > 0:57:01that, so I'm quite pleased with those sorts of figures.
0:57:01 > 0:57:06We've got a bit more and I think the house proves it was worth a little bit more.
0:57:06 > 0:57:09Yes, that high-end finish has obviously paid its way
0:57:09 > 0:57:12by helping John to get the best possible rental income.
0:57:12 > 0:57:16He's done well, with his first foray into the property market.
0:57:16 > 0:57:18I'm very pleased with it.
0:57:18 > 0:57:21A lot of people, friends and family, put a lot of hard work into it
0:57:21 > 0:57:23and a lot of efforts have come to show
0:57:23 > 0:57:27we've got a nice wee property here and I'm very, very pleased.
0:57:27 > 0:57:29Very pleased.
0:57:29 > 0:57:34That's great to hear. Will he be going back to the auction, then?
0:57:34 > 0:57:36Yes, I think I've got the bug now!
0:57:36 > 0:57:39I've really enjoyed doing this and I'm looking at a couple of houses now
0:57:39 > 0:57:43in the three-bedroom, two-bedroom range.
0:57:43 > 0:57:47They're at auction as well, so you never know!
0:57:47 > 0:57:49I think I've got the bug!
0:57:51 > 0:57:54So join us next time for more auction ups and downs.
0:57:54 > 0:57:58Yes, from bungalows to basements to building sites...
0:57:58 > 0:58:01- It's all here on Homes Under The Hammer.- See you next time.
0:58:01 > 0:58:02- Goodbye.- Goodbye!