Episode 26 Homes Under the Hammer


Episode 26

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Transcript


LineFromTo

Hello, and welcome to the show.

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All sorts of people buy property at auctions -

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they attract buyers from all walks of life.

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And that's because there are bargains to be had under the hammer.

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Well, there are all sorts of buyers

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and a wide variety of properties available at the auctions.

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Yes, there's a race to get the best bargains and you have to be

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in it to win it, so let's see what's featured on today's programme.

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First up, in Newham, London,

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it's pretty clear what the first job should be.

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Main thing is you need to get rid of it!

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Whilst in Margate, Kent, I won't be giving up the day job any time soon.

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Bit of a gag here - sofa bed. Ha-ha! You like that?

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And in Corby, Northamptonshire,

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it looks like the jobs will be left to the pros.

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Unfortunately, I'm not very handy.

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Only thing handy about me is I live around the corner!

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All these properties have been sold at auction

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and we'll find out who bought them and what they paid for them

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when they went under the hammer.

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All done, sir - it's yours.

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This is Newham - a borough of East London

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and our auction lot is not far from Newham Hospital,

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which could mean lots of potential hospital staff as tenants.

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Well, if you're hoping for somewhere that is close to transport links -

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well, Tube ones anyway - you might be disappointed.

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It is a 20-minute walk to the Tube.

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However, let's just talk about prices,

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because the average price of properties around here

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is £246,000. Mm-hm.

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This place behind me had a guide price of 180,000 - three bed,

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mid-terrace - that's interesting, isn't it?

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A property guided below £200,000 in London

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has got to be worth investigating.

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Let's hope it doesn't disappoint.

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So, whenever there's that level of discrepancy between average

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property prices and the guide price, you've got to be thinking,

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"What am I going to be faced with?"

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Well, actually...

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Doesn't smell damp.

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Obviously in need of a bit of tender loving care, but good size.

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I like the front room - nice feature fireplace.

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Bay window, double glazing.

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I'm looking around though

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and it doesn't look like there's central heating.

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You'll have to factor that into your budget.

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Fairly standard layout - stairs up to your bedrooms,

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into your rear sitting-room. Poke behind here...

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Slightly disappointing!

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I was hoping for something a little more elaborate than that!

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But at least it's an open fire - I love open fires.

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Make a bit of a feature of that.

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Door out to your garden there

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and then from middle-of-the-road,

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"It's OK", kind of scenario, to

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"Oh, no!", when you come in here.

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This, sadly, is the kitchen.

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Built into an extension on the rear of the property

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and as you can see, it is pretty inadequate.

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Sadly, it gets worse, because THAT

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is your bathroom.

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I say bathroom, there's no bath in it,

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but there's a separate loo and this shower area.

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Obviously they've also got signs of damp as well,

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so from what was a reasonably hopeful start,

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eurgh!

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It all went a bit wrong!

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It's a shame, because the rooms

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and the main body of the property are great, with bags of character.

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Then the kitchen and bathroom are crammed in the back,

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almost as an afterthought.

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# Shame

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# Ooh ooh ooh... #

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And with modern living demanding or maybe requiring a big,

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modern kitchen, this just doesn't hack it.

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# Shame

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# Ooh ooh ooh... #

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But hang on - look at this!

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A very substantial garden indeed - in London, no less!

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This is a massive bonus.

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You could easily fit a bigger and better extension in here to house

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a kitchen, maybe even a two-storey one with a bathroom above.

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Or am I getting ahead of myself here?

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Maybe there's room upstairs for the bathroom, so all the space

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in the current extension could be given over to the kitchen?

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Let's see.

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So, upstairs, what are we going to find?

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Well, a little landing area here, you could make it feel a lot less

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claustrophobic by getting rid of that cupboard.

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First of the bedrooms, that's not a bad size.

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It's nice it's got another original fireplace, gives real character.

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We like that.

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But once again, the house gets you all excited

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and then as you progress a little further

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it goes horribly wrong,

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because these are the second and third bedrooms.

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This is the second one - as you can see, it's really small -

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what's that all about?

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It's all stud partition walls. Um...

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The clue as to what is going on can be found, bizarrely,

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through the stud partition.

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Clearly this isn't an original feature, but it does give you

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a chance to do a masterclass in construction and stud partitions.

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Main thing is you need to get rid of it!

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It's divided what was a fairly decent front bedroom into two

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really unacceptable smaller bedrooms.

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You may get a bit more rent for the property with three bedrooms,

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but really - it doesn't work, does it?

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# We belong together

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# We belong together

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# Always true... #

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These rooms definitely need to be reunited

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and I reckon a few hours with a sledgehammer should achieve that.

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The house would be all the better for it and for me,

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this property is a bit of a curate's egg - good in parts,

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with nice period features and some good-sized rooms,

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plus that attractive £180,000 guide price.

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But the layout is really holding it back.

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But what does a local estate agent think of what's on offer here?

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Does she have any thoughts about the layout?

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As a personal preference,

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I would leave the big bathroom downstairs to have a family bathroom

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and have even an en-suite shower room

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upstairs or a separate shower room.

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That's not a bad idea, even if the bathroom remains in the same place -

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perhaps the attraction of an en-suite would entice buyers in.

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But that would mean it would have to be a two-bed house

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and not the pretend three as we have at the moment.

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What effect would that have on the value?

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Once renovated, and in its current layout,

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this property can resale in between 270 and £280,000.

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If this property would be renovated

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and changed to a two-bedroom house,

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this property could be resold

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to a price in between 240 and £260,000.

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Wow! So losing that third bedroom could mean lessening the value

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by 20 or even £30,000.

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That has to be the most expensive partition wall ever!

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However, the agent thought that as a two-bedroom house, it would

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sell faster than a three-bed.

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So, what about the rental values?

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This property can be rented out for

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£1,300 per calendar month.

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As a two-bedroom house, this property can rent out for £1,200

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and it can go up to £1,250 per calendar month.

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So, not particularly close to the Tube, but a nice quiet area

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and I think potential to add real value to this one.

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Let's see who agreed when it went under the hammer.

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Mid-terraced, five-room house. 180.

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Must be worth 180. Standing up. 180.

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181? 181. 182.

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183.

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184.

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-185.

-Well, not surprisingly, this was a popular lot.

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We rejoin the bidding at £200,000.

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200. 201.

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202.

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203.

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204.

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205.

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206.

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205 on my left.

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206 elsewhere?

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If not, £205,000, first time...

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Second time...

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Third and last time, are you all done?

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-BANGS GAVEL

-Sold, 205, on my left.

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Hidden from our view,

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but catching the auctioneer's eye,

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for that final bid of £205,000 was Raj.

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We met at the property so she could tell me what she has planned.

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-Raj, great to meet you.

-Hi.

-Congratulations.

-Thank you.

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Tell me why you wanted to buy the house.

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I think it's affordable round here

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and it's good for the rent.

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That's the plan, is it? Rent it out?

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-Yes.

-What is it about the area that particularly appeals?

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I've got a few properties around here, so I know the area quite well.

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Newham Hospital is quite close by and

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the East London University is round here, so...

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Raj used to be a hospital supervisor,

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so she knows well the market that could be tapped here.

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However, property is now where she earns her living.

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I've got a son with special needs and after he was born,

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I couldn't go back to work and then, thinking about his future

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and mine as well, I started my own business.

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Raj has refurbished properties for resale as well as building

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a rental portfolio in this area, which has helped her find

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a more flexible way of life to meet her 14-year-old son Aaron's needs,

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as well as look after her two daughters, Riya and Hannah.

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What's the sort of goal?

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So my son can have after us about £5,000 monthly

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coming in from somewhere, he doesn't have to rely on somebody,

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so he's got enough money coming in to look after himself.

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I quite enjoy it myself, as well, doing these things.

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I get to relax because sometimes you do get stressed thinking

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about him, but when I'm working I just get relaxed, because I love it.

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I've never thought of property developing as relaxing!

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You can sure get passionate about it, excited by it, frustrated by it!

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But relaxing?! Each to their own, Raj!

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I assume she's got a very relaxing project plan for this

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stress-free property?

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So what are you going to do with it?

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All the decorations, everything - replastering, rewiring,

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-new kitchen, new bathroom.

-Bathroom, keeping it where it is?

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Temporarily, I think so. I've got a few ideas I need to get around.

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I'd like to have a big kitchen

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-because the kitchen is quite small at the moment.

-Yeah.

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I'm not doing any planning permission at the moment.

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Because I'm renting, I don't want to keep it for eight weeks empty.

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-OK.

-Maybe for the future, I'll move the bathroom upstairs.

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What about upstairs?

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Obviously, three bedrooms, but one that's very small.

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It's originally a two-bedroom house, I know that because most of

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the houses on this road are two bedrooms,

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-so we are turning back to two bedrooms.

-You are, OK.

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What difference does that make in terms of the rent?

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It's not a big difference.

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If it's a two bedroom, nice, good-sized,

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-people like that more than having a small three-bed.

-Yes.

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So what budget have you got for this place?

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Around 18,000.

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£18,000 is a pretty healthy budget

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and should mean even if the kitchen and bathroom

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remain in the same place, they will be of much improved quality.

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Her husband Jagdash

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and daughter Riya have come to look around Raj's new project.

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She'll also be getting plenty of help from her other daughter, Hannah.

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The girls normally like doing the painting, stuff like that.

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-Oh! How old are they?

-One is ten, one is seven.

-Oh, great!

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They get involved - want to know what colour I'm doing,

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-what's happening.

-Listen, congratulations. Good luck with it.

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-We'll see how you get on.

-Thanks, bye.

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Well, people get involved in property developing

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and investing for all sorts of reasons, in this case

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Raj using it to secure the financial future for her family.

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Good stuff.

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In terms of not building an extension above the existing one

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straightaway, is that the right decision?

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And how about that tight timescale?

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Will she get it done in time?

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You can find out later in the show.

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Now, do you fancy leaving London behind for a trip to the seaside?

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Well, traditionally, when Londoners wanted to do just that, they

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made the short trip here, to Margate.

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I've visited it a lot over the years and I've watched it transform

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in front of my eyes with the help of various regeneration schemes,

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it's now a smart seaside town with blue flag beaches.

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# Down by the seaside

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# See the boats go sailing... #

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As with all regeneration,

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the hope is the benefits will spread to surrounding areas.

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About a mile and a half from the centre of Margate is

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Cliftonville, which has seen some hard times.

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It's a place with some gorgeous buildings,

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so my hope is that we'll see this area get a new lease of life too.

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Oh, how I do like to be beside the seaside!

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No, I know you might not be able to see it on a foggy day

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like today, but it is actually just at the end of the road.

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The property I'm here to see is THIS - it looks a little shabby

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from the outside, but it's already been

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converted into five dwellings, all for a guide price of 115 to 120,000.

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I'm going to head inside and take a look around.

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Well, this is actually a fairly pleasant hallway.

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It is a bit dated with the old woodchip,

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but it's a good size and there's still a bit of character left here.

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I know that flat number one at the back is already tenanted,

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so I'll pop into flat number three and have a look around.

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# Cos I'm free... #

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This lot also comes with the freehold of the whole building,

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so if you want to alter it or clean up that shabby exterior,

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or those communal areas, any planning issues aside,

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you have a lot of freedom.

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# I'm free to do what I want

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# Any old time

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# I said I'm free... #

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So, into flat number three and, er...

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this is it. It is just one room.

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So what have we got in here?

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Nice, high ceilings, beautiful cornicing, nice fireplace.

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Fabulous bay window, a very small kitchenette,

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couple of cupboards and a sink.

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And a bit of a gag here - sofa bed.

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Ha-ha! Do you like that?

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I know the washing facilities are upstairs on the first floor.

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This really is it. I'm going to check out the flat number two now.

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So, like next door, it's just one room, not that much space.

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Another sofa bed(!) We've got a nice fireplace here...

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I'm just thinking it might be worth knocking these two little

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studios into a one-bed flat.

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You might not get as much rent, but I think you'd get a longer

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term tenant and it would just be a much nicer property to live in.

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At the moment, they're only divided by partition walls,

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so it would be easy to take these down and rearrange the space.

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As you know, I would always recommend having a chat

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with your local planning authority to get their guidance in case

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you come a cropper.

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Now, I already mentioned the one-bedroom tenanted flat

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on the ground floor.

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Moving up onto the first floor,

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you have the communal facilities for the two bedsits I've just

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looked at, including shower, toilet and washing machine.

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There's another one-bed flat on this floor

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and then you head up to the top floor

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and a fifth one-bed flat.

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Replacing the dated carpets and giving the walls

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a lick of paint would really brighten up these communal areas.

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However, even as they stand, the three currently occupied

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one-bed flats bring in an impressive income

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of £13,780 per annum.

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It's not that often that I visit tenanted properties on this show,

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but they do come up at auction.

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On the plus side, this means you already have a regular income

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from the rent that's being paid

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and you're not left with an empty property just sitting there.

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But there are also some negatives to consider. For starters, you

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could inherit problematic tenants that are behind in their rent.

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You may have to honour long-term agreements,

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halting any refurbishment plans that you may have.

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So there's lots to consider - just make sure you do your homework,

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read the legal pack

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because it's not always as straightforward as it may seem.

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This property has a licence from the local authorities to be

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a house of multiple occupancy, or HMO.

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Now, the licence is awarded only once all building regs, communal

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facilities and safety precautions meet the required standards.

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There is a push in this area for more family dwellings,

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so HMO licences are difficult to come by -

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so already having one is a bonus.

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At a guide price of just 115 to 120,000,

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we could be looking at a little money-spinner,

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so we asked the local property expert for his opinion.

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From what I've seen having looked around the property,

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it's reasonably clean and tidy, but it is quite dated.

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I consider the two bedsits quite small,

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so I would suggest that you look at putting that into one apartment.

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But that depends on local planning regulations, of course.

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Assuming you left them as bedsits, how much rental could you make?

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Once renovated, I would suggest this would probably not let for any

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more than £200 per calendar month.

0:18:540:18:57

If these two were put into one one-bedroom flat, I would

0:18:570:19:01

imagine it would let for somewhere around £400 per calendar month.

0:19:010:19:06

Those figures confirm what I said earlier -

0:19:060:19:08

having it as a one-bed flat wouldn't make you any more money.

0:19:080:19:11

In fact, it would cost you to do the conversion back to a one-bed,

0:19:110:19:15

but I reckon it would be more likely to rent

0:19:150:19:18

and be a much nicer place to live.

0:19:180:19:20

And a happy tenant means a happy landlord in my book!

0:19:200:19:23

Let's work on the basis that we turned the two studios

0:19:230:19:26

into a one-bed flat - what could it sell for?

0:19:260:19:29

A one-bedroom flat here could resell for approximately £65,000.

0:19:310:19:36

Add that to the three other one-bed flats

0:19:370:19:40

and four times £65,000 equates to £260,000.

0:19:400:19:45

Much more profitable than the 175 to 180,000 that our agent

0:19:450:19:50

estimated the property would be worth

0:19:500:19:53

if you were to sell it as one after basic renovations.

0:19:530:19:57

If you buy this property for the top end of the guide price,

0:19:570:20:00

you still get a rental yield of 11%,

0:20:000:20:04

without even lifting a finger to do any work!

0:20:040:20:07

This sounds like it could be a great investment for someone -

0:20:070:20:10

let's see who that was when we went to the auction.

0:20:100:20:13

Good-looking property there, guided at 115 to 120.

0:20:130:20:17

Are you going to come in at 115,000?

0:20:170:20:20

115? I'd have thought it was worth every penny of that.

0:20:200:20:22

Give me 110, then - set me on the way. 110, I'm obliged.

0:20:220:20:26

At 115, sitting down. 120, it's against you.

0:20:260:20:29

120, if you like.

0:20:290:20:31

120, do I see? Take 118 if you like.

0:20:310:20:34

If not, 118, second row back.

0:20:340:20:36

120, sir. 120, can I say? 120.

0:20:360:20:40

And two? 122. And four. 124.

0:20:400:20:45

It's against you. 124.

0:20:450:20:47

At £122,000, I have for the first time, second row back.

0:20:470:20:51

I'm looking for 124. It will be sold for the second time at £122,000.

0:20:510:20:56

124 I've got. 126. You were pretty close to it.

0:20:560:21:00

Another one? 126. 128?

0:21:000:21:03

128, if you like.

0:21:030:21:04

If not, at £126,000 going for the first time,

0:21:040:21:08

£126,000,

0:21:080:21:10

for the second time...

0:21:100:21:12

Third and final time, second row back, 126,000, all done.

0:21:120:21:15

-GAVEL BANGS

-You bought it, sir - 126.

0:21:150:21:18

The successful bidders were husband-and-wife team Steve

0:21:220:21:25

and Louise, with a bid of 126,000.

0:21:250:21:28

From nearby Sittingbourne, Steve, who runs a shop-fitting company

0:21:280:21:32

and his florist wife Louise started up a small property company

0:21:320:21:36

around ten years ago and have been gradually adding

0:21:360:21:39

to their portfolio once or twice a year.

0:21:390:21:41

I met the pair of them

0:21:450:21:46

back at their latest acquisition to find out their plans.

0:21:460:21:49

-Steve and Louise, congratulations.

-Thank you.

0:21:520:21:54

How did you find this property?

0:21:540:21:56

We look through the local auctions, see what's coming up

0:21:560:21:59

and we identified five properties in the area on that particular auction.

0:21:590:22:02

Came down and this was our preferred choice,

0:22:020:22:05

-so we're delighted to be successful.

-What was it that appealed so much?

0:22:050:22:09

Mainly the yield.

0:22:090:22:10

That was quite interesting -

0:22:100:22:11

even with this empty property, we're still managing 11%

0:22:110:22:14

potentially, subject to what we finally paid at the auction.

0:22:140:22:17

And what do you like about Margate?

0:22:170:22:20

We've just seen how up-and-coming

0:22:200:22:22

it is and watch your programme quite a lot!

0:22:220:22:24

Good!

0:22:240:22:26

Down on the seafront, all the little shops

0:22:260:22:29

and boutiques are really quite pretty.

0:22:290:22:31

It really has changed over the years.

0:22:310:22:33

-Do you feel this is a great place for you guys to invest at the moment?

-We're certainly interested.

0:22:330:22:37

Our main property portfolio is in the Medway towns, but we have

0:22:370:22:42

seen that we're achieving better results in this part of the world,

0:22:420:22:46

so it's certainly where we're focusing our attention going forward.

0:22:460:22:50

So what can you tell us about the tenants

0:22:500:22:52

and tenancy agreements of the people that were already here?

0:22:520:22:55

I know a lot of people might have been put off by the fact that

0:22:550:22:58

-people already live in this building.

-It was a concern.

0:22:580:23:01

We don't know too much about how long they've been here, so that was a

0:23:010:23:05

risk we factored in to the deal, but we consider it a risk worth taking.

0:23:050:23:10

So now you've bought the property at auction, do you think that will

0:23:100:23:12

pose any problems, the fact that people already live here?

0:23:120:23:15

So far, since we took the property on Monday,

0:23:150:23:18

two of the tenants have been and introduced themselves, so we're only

0:23:180:23:23

waiting for one other tenant to go into our agent and liaise with them.

0:23:230:23:28

Steve and Louise still have some things to go over,

0:23:290:23:32

as although they read the legal pack,

0:23:320:23:34

some details were marked out for data protection purposes.

0:23:340:23:37

So that will need checking through,

0:23:370:23:39

but the couple employ a local agent to look after their properties,

0:23:390:23:42

who they think can organise things quickly.

0:23:420:23:45

Do you have any plans to move the tenants on or are they free to stay if they want to?

0:23:470:23:51

-Are you going to be upgrading all their properties?

-We'd like them to stay, most definitely.

0:23:510:23:55

If it's their home, we'll upgrade it for them, make it a nicer environment.

0:23:550:23:58

-We certainly would welcome them staying.

-So that's a win-win situation all round.

0:23:580:24:02

-That's good news to hear.

-Let's hope so.

0:24:020:24:04

Smiles all round, then - especially for the existing tenants!

0:24:040:24:08

# Ooh, baby

0:24:080:24:10

# Something tells me

0:24:100:24:12

# I'm on a winner with you

0:24:120:24:15

# Ooh... #

0:24:150:24:17

So, what are the couple's plans for the property?

0:24:170:24:19

This is currently situated as two bedsits,

0:24:190:24:23

which...potentially the yield would be better,

0:24:230:24:26

but it's not really for us, so Louise and I have discussed it

0:24:260:24:30

and we're going to turn this into another one-bedroom flat.

0:24:300:24:33

We aim to do that over the next six to eight weeks.

0:24:330:24:37

We'll look at all the common areas and bring them

0:24:370:24:39

up to something a little nicer,

0:24:390:24:41

give the outside facade a face-lift, as well.

0:24:410:24:44

Steve and Louise have a budget of 15 to 20,000

0:24:440:24:48

and plan to use contractors to do the work.

0:24:480:24:51

But it will still be a team effort.

0:24:510:24:55

So who's going to play what role here?

0:24:550:24:57

I'll be overseeing what the builders are doing

0:24:570:25:00

and how they're getting on and Steve will basically be doing the rest.

0:25:000:25:04

As I'm down here today, I'll do the designs, take the measurements

0:25:040:25:08

so we can order the materials and get everything ready for the guys

0:25:080:25:11

so there's no delays on that part.

0:25:110:25:14

Guys, I'm really excited for you, congratulations.

0:25:140:25:16

-This has been a good purchase - well done.

-Thank you very much.

0:25:160:25:19

Thank you.

0:25:190:25:21

Well, Steve and Louise might have done this before,

0:25:210:25:23

but it's certainly still not without its risks.

0:25:230:25:27

Let's hope there aren't any complications along the way.

0:25:270:25:29

You can see how the couple get on later on in the programme.

0:25:290:25:33

Still to come, in Corby, Northamptonshire,

0:25:350:25:37

an old favourite of mine turns up.

0:25:370:25:39

Polystyrene tiles! Don't you love them?

0:25:410:25:44

Whilst beside the seaside in Margate,

0:25:460:25:48

will the sun be shining down on Steve and Louise's project?

0:25:480:25:52

But first, it was in the London Borough of Newham where

0:25:580:26:01

I came across a mid-terraced, three-bedroomed house.

0:26:010:26:04

Well, I say three-bedroom, but this was originally a two-bed house

0:26:050:26:09

that had been divided up to create an extra bedroom.

0:26:090:26:13

You may get a bit more rent for the property with three bedrooms,

0:26:130:26:16

but really - it doesn't work, does it?

0:26:160:26:18

Yes, that dividing wall needed to go.

0:26:180:26:20

The downstairs layout wasn't too clever, either.

0:26:200:26:24

With the bathroom only accessible by passing through the kitchen,

0:26:240:26:27

it was a house with issues.

0:26:270:26:29

But for property developer Raj,

0:26:310:26:33

this was nothing she hadn't tackled before.

0:26:330:26:36

Indeed, she owned similar types of houses in the area.

0:26:360:26:40

She snapped this one up for 205,000 to add to her burgeoning

0:26:420:26:47

property portfolio.

0:26:470:26:49

Tell me how you got into it.

0:26:490:26:51

I've got a son with special needs

0:26:510:26:53

and after he was born I couldn't go back to work,

0:26:530:26:56

and thinking about his future - and mine as well -

0:26:560:27:00

I started my own business.

0:27:000:27:03

And the aim was that her rental portfolio would generate

0:27:030:27:07

enough income to look after her son.

0:27:070:27:09

This was also to be a family affair, with her husband, brother

0:27:090:27:13

and two daughters all lined up to help,

0:27:130:27:15

alongside her regular team of professional tradesmen.

0:27:150:27:19

And with a comprehensive renovation and layout change planned,

0:27:190:27:22

it was going to be all hands to the pump,

0:27:220:27:24

with a budget of £18,000

0:27:240:27:27

and a timescale of just four weeks!

0:27:270:27:30

And now we're back with Raj to check on progress.

0:27:300:27:35

Oh, my goodness! What an unbelievable transformation!

0:27:560:28:00

The lounge has been knocked through

0:28:000:28:02

to take some space off the rear reception room.

0:28:020:28:04

And remember that sorry kitchen extension with that shower room

0:28:090:28:12

at the end of it?

0:28:120:28:14

Well, it's not so sorry now!

0:28:160:28:18

The kitchen now occupies all of the rear extension

0:28:180:28:21

and has doors leading out to the garden.

0:28:210:28:23

And the bathroom - where's that?

0:28:260:28:27

Well, that now has its own access in what was the rear reception room.

0:28:300:28:35

What a clever layout change!

0:28:350:28:36

And upstairs, remember that back bedroom

0:28:470:28:49

that had been divided in two?

0:28:490:28:51

Well, it isn't any more.

0:28:530:28:55

# Reunited and it feels so good

0:28:550:29:00

# Reunited cos we understood... #

0:29:020:29:06

And with the other bedroom finished with similar finesse,

0:29:070:29:10

upstairs is oh, so much better.

0:29:100:29:14

And if the house itself wasn't amazing enough, look at the garden.

0:29:140:29:17

Truly stunning.

0:29:240:29:26

And get this - all these changes were done

0:29:260:29:29

in just 3½ weeks.

0:29:290:29:32

Whoa!

0:29:320:29:33

So is Raj pleased with the outcome?

0:29:330:29:35

I think it's turned out quite good.

0:29:390:29:41

I'd like to have a bigger lounge, but there wasn't any other way

0:29:410:29:45

we could do a bigger kitchen and nice bathroom as well.

0:29:450:29:48

But if it's a nice kitchen, nice bathroom,

0:29:480:29:50

you get a lot more money as well.

0:29:500:29:53

Yes, definitely kitchens and bathrooms sell properties

0:29:530:29:56

and make it easier to get good tenants.

0:29:560:29:58

But usually, more bedrooms add value too,

0:29:580:30:01

so is she worried about losing the extra bedroom?

0:30:010:30:04

At the moment, because we're keeping the property,

0:30:040:30:07

there's not a big rental difference between two and three bedrooms, but

0:30:070:30:12

in the future, if we want to sell it, then we will extend and then sell.

0:30:120:30:16

Raj employed a team of builders she has used on other projects to

0:30:180:30:22

do the bulk of the work, but her family also helped,

0:30:220:30:25

particularly with the decoration and the dressing of the house.

0:30:250:30:29

And not only did she complete the work under her four-week timescale,

0:30:290:30:33

she also did it under budget,

0:30:330:30:36

spending just £17,000, which on top of her £205,000 purchase price,

0:30:360:30:41

takes Raj's total costs to £222,000.

0:30:410:30:46

I think it's all incredible,

0:30:520:30:54

but what did two local estate agents think?

0:30:540:30:57

Starting with the agent who saw it in its previous shape.

0:30:570:31:01

I do like the layout of the property.

0:31:010:31:04

I like the kitchen, because it is modern and new.

0:31:040:31:07

I like the bathroom, as well - they've put a bit of a style

0:31:070:31:10

and the living room as you go in, looks very nice.

0:31:100:31:15

Where they've manoeuvred things around,

0:31:150:31:16

the bathroom is now in a much better position.

0:31:160:31:18

The finish is exceptionally good, as well.

0:31:180:31:21

I like the contrasting colours they've used and think it

0:31:210:31:23

will appeal to most people in this marketplace at the moment.

0:31:230:31:26

Raj wants to hang on to the house, adding it to her rental portfolio.

0:31:260:31:31

But how would a property she's invested £222,000 on so far

0:31:310:31:35

fare on the current resale market?

0:31:350:31:38

This property could resale under current market conditions

0:31:390:31:43

in between 270 and £280,000.

0:31:430:31:48

The resale value on the property, I think with how the work has

0:31:480:31:51

been carried out, you're looking at around 270 to £280,000.

0:31:510:31:56

I was thinking it might be 250,

0:31:560:31:58

so I'm really happy with that.

0:31:580:32:01

So a potential pre-tax profit of between 48 and £58,000.

0:32:010:32:06

But what about those all-important rental values?

0:32:060:32:10

The property could be rented at a price range between 1,100

0:32:100:32:15

and £1,200 per calendar month.

0:32:150:32:18

You'll be looking around about £1,100-£1,200 per calendar month.

0:32:180:32:21

So what does Raj make of those rental valuations?

0:32:210:32:25

I'm confident that by the end of the week it'll be rented at 1,250.

0:32:250:32:29

If she manages to get 1,250 per calendar month,

0:32:300:32:33

that would mean a yield of nearly 7% -

0:32:330:32:36

not bad for a four-week project!

0:32:360:32:39

I can't get over how much she's managed to achieve

0:32:390:32:41

in such a small time.

0:32:410:32:43

So what is Raj's secret, apart from a team of very reliable builders?

0:32:430:32:48

My advice is, if you want to do something, you can do it.

0:32:500:32:54

So...if you go 100% your heart and brain into it,

0:32:540:32:58

you can do anything.

0:32:580:32:59

# You can do magic, magic, magic

0:32:590:33:03

# You can do magic, baby... #

0:33:030:33:06

And Raj's philosophy has won through.

0:33:060:33:09

As we've just heard, she's let the house as predicted

0:33:090:33:12

for £1,250 per calendar month.

0:33:120:33:15

# You can do magic, magic, magic

0:33:150:33:18

# Like you can do magic, baby... #

0:33:180:33:20

Meet the steel man,

0:33:270:33:29

a monument to the industrial past of Corby in Northamptonshire.

0:33:290:33:34

Corby grew from a village in the 1930s

0:33:340:33:36

when a new steelworks drew people from all across the country,

0:33:360:33:40

especially the west coast of Scotland.

0:33:400:33:43

The Scottish community thrived here and in the 1950s,

0:33:440:33:48

expansion of the town led to a further influx of Scots

0:33:480:33:51

from across the border,

0:33:510:33:52

earning the town the nickname "Little Scotland".

0:33:520:33:55

Today, the steelworks have long gone, but the town is still

0:33:570:34:01

thriving and in 2010, was set to be the fastest-growing

0:34:010:34:05

town in England - sounds like a good place to invest in property.

0:34:050:34:09

So, what property made it into the auction catalogue

0:34:110:34:14

and onwards to a happy buyer?

0:34:140:34:17

Well, it's this neat '60s mid-terrace and already I'm thinking

0:34:170:34:20

I like that tiled frontage!

0:34:200:34:23

Guide price was £65,000 plus.

0:34:230:34:26

In we jolly well potter!

0:34:270:34:28

There's a nice little entrance area here

0:34:320:34:34

and through that way to the kitchen area.

0:34:340:34:37

This way through into the lounge.

0:34:370:34:40

I do like that little front bit - it's somewhere to put your stuff

0:34:400:34:44

when you come in - your hats and coats and bags.

0:34:440:34:47

Lounge, not a bad size,

0:34:470:34:49

gas-fire - loads of light pouring in which is good to see.

0:34:490:34:53

Through to the back.

0:34:530:34:54

Little dining area over that way with some nice patio doors

0:34:540:35:00

out into the garden.

0:35:000:35:01

You immediately sort of start thinking I wonder if there's

0:35:010:35:05

some walls that could come out to make it a bit more open plan?

0:35:050:35:08

Especially in here - this is the kitchen. As you can see,

0:35:080:35:11

it needs a bit of work, but it's a nice-sized space.

0:35:110:35:15

This wall, though, would be number one candidate to go,

0:35:150:35:18

because you've got this strange little utility area there.

0:35:180:35:21

Open that up to give a much nicer space.

0:35:210:35:24

But before you start knocking any walls out, there's one feature

0:35:240:35:27

of the property that does need to be addressed.

0:35:270:35:30

Polystyrene tiles! Don't you love them?

0:35:320:35:35

This house is actually a bit of a museum to them.

0:35:350:35:39

Different polystyrene tiles on the ceilings in most of the rooms

0:35:390:35:43

and you may well be staring at these in your property, in which case,

0:35:430:35:47

they need to come off - they are a massive fire risk.

0:35:470:35:50

If you do have a fire in your house, what happens is they basically

0:35:500:35:54

just melt, dripping plastic, foamy whatever-it-is onto whoever is in...

0:35:540:35:59

They are a disaster.

0:35:590:36:01

Seriously, if you're just living in a house,

0:36:010:36:03

please think about getting rid of them.

0:36:030:36:06

And if you're a landlord, there are guidelines to follow which

0:36:060:36:09

will be checked if your property requires a fire certificate.

0:36:090:36:13

They are only permitted IF they meet relevant fire resistant standards,

0:36:130:36:17

IF they aren't on an escape route or stairs,

0:36:170:36:20

IF the tiled area doesn't exceed more than half of the floor area

0:36:200:36:25

and IF it isn't more than 20m squared.

0:36:250:36:27

Too many ifs already -

0:36:270:36:29

in my opinion, they're not worth the bother.

0:36:290:36:31

Moving on upstairs, there is

0:36:350:36:37

a small landing that leads off to four bedrooms.

0:36:370:36:40

Two slightly larger rooms and two smaller.

0:36:400:36:44

But all good, usable spaces.

0:36:450:36:47

The bathroom is, again, functional.

0:36:470:36:50

Not much space to manoeuvre, but you can fit in all the basics -

0:36:500:36:54

sink, toilet and bath,

0:36:540:36:55

which can't be said for all the properties I see!

0:36:550:36:58

All in all, it's a good standard property.

0:36:590:37:01

It has everything you could need including this rather

0:37:010:37:04

colourful downstairs toilet.

0:37:040:37:05

A bit more space would always be nice

0:37:070:37:09

and maybe knocking down walls could open things up a bit, but that

0:37:090:37:12

means additional costs and this property does function quite well.

0:37:120:37:17

So, with a guide price of 65,000,

0:37:170:37:19

what did a local property expert think of it?

0:37:190:37:22

I think with the layout of the home,

0:37:240:37:25

it's already got a very good flow.

0:37:250:37:27

Certainly upstairs with the bedroom accommodation,

0:37:270:37:30

the landing space works extremely well.

0:37:300:37:32

Ground floor wise, you could open up between the dining room

0:37:320:37:35

and kitchen. The kitchen/breakfast room is already a good size.

0:37:350:37:38

Having a separate utility area,

0:37:380:37:40

you could incorporate either one of those two areas into it,

0:37:400:37:43

giving it an open-plan kitchen/family room, which is very popular at the moment.

0:37:430:37:46

And what other work does he think needs doing to the property?

0:37:460:37:49

To start with, it would be the central heating system,

0:37:490:37:52

there doesn't appear to be any form of heating in the home.

0:37:520:37:55

The polystyrene ceiling tiles are an issue,

0:37:550:37:57

they would need to be removed and the ceilings re-skimmed.

0:37:570:38:00

In terms of the wiring system in the home as well,

0:38:000:38:03

it seems to be dated,

0:38:030:38:04

so the new consumer unit and a rewire in the property would be required.

0:38:040:38:08

So what can all this work convert into in terms of profit?

0:38:080:38:12

In the current marketplace,

0:38:120:38:14

I believe this property having been refurbished to a good standard as

0:38:140:38:17

described, it would fetch something in the region of £120-£125,000.

0:38:170:38:22

Wow! That's nearly twice the guide price.

0:38:220:38:24

Can you get such a good return on the rental, as well?

0:38:240:38:28

For the rental market, I believe this property would achieve

0:38:280:38:30

something in the region of £650-£675 per calendar month.

0:38:300:38:34

That's all sounding quite healthy,

0:38:350:38:37

so get rid of the ceiling tiles, open up the kitchen

0:38:370:38:40

and you could have a nice little bundle of profit on your hands.

0:38:400:38:44

Let's see who got this possible gift of a property

0:38:440:38:47

when it went under the hammer.

0:38:470:38:49

A three-bedroomed townhouse -

0:38:490:38:51

who's got 64 to start me?

0:38:510:38:53

64? Thank you.

0:38:530:38:54

£64,000.

0:38:540:38:56

65? Thank you, 65.

0:38:560:38:58

65, seated at 66.

0:38:580:39:01

67. 68, sir?

0:39:010:39:04

68 is bid. At 68,

0:39:040:39:06

500. 68,500?

0:39:060:39:10

69. 500?

0:39:100:39:12

70,000.

0:39:120:39:13

It's not a dear property.

0:39:130:39:15

500. 71.

0:39:150:39:17

71. 71,500?

0:39:170:39:20

71,500.

0:39:200:39:21

72? 72 is bid.

0:39:210:39:24

It's got to go.

0:39:240:39:25

At 72, it's worth one more. at £72,000,

0:39:250:39:29

500 somewhere else?

0:39:290:39:30

At 72,000, once,

0:39:300:39:33

twice, third time.

0:39:330:39:35

Sold at 72,000, thank you.

0:39:350:39:38

The hammer fell at £72,000.

0:39:380:39:41

Buyer John came to Corby when he was 18 months old

0:39:410:39:45

and like many before him, worked in the steel industry.

0:39:450:39:49

Now he runs a taxi business. I met him back at the property

0:39:490:39:52

to tell me more.

0:39:520:39:54

-John, great to meet you.

-And you.

-Congratulations.

-Thanks very much.

0:39:540:39:57

Tell me why you wanted to buy this place.

0:39:570:39:59

Just an investment, really.

0:39:590:40:01

It's something I've been looking at for a little while now

0:40:010:40:04

and the housing market is starting to pick up a bit, I thought

0:40:040:40:07

-it was a good time to invest.

-So of all the ones you could have picked, why this one?

0:40:070:40:10

I looked at it three or four days

0:40:100:40:12

before the auction and was quite impressed.

0:40:120:40:15

It's needing a bit of work done,

0:40:150:40:16

but I think there's room for an investment to make a profit.

0:40:160:40:20

Tell me what you're going to do to sort it out.

0:40:200:40:22

Downstairs, we're looking at maybe knocking the dining room wall

0:40:220:40:26

out and making it a kitchen/diner.

0:40:260:40:29

-Mm-hm.

-There's a room adjacent to the kitchen -

0:40:290:40:31

we'll probably keep that as a utility room, I think. Living room...

0:40:310:40:36

Basically everything needs cosmetically tidying up, really.

0:40:360:40:40

And electrics, probably!

0:40:400:40:42

Well, yeah! Electrics will be the first...

0:40:420:40:45

I've got my cousin coming in tomorrow, who's an electrician,

0:40:450:40:48

so he's going to start work on that because obviously it'll need rewired.

0:40:480:40:53

-Obviously pesky polystyrene tiles everywhere.

-Mm.

0:40:530:40:56

-I presume they're coming off?

-Blast from the past, aren't they?

0:40:560:40:59

Yes, they've got to come off.

0:40:590:41:01

I don't know what state the ceilings will be like under it,

0:41:010:41:04

but they'll probably need skimmed. The whole lot will be coming down.

0:41:040:41:08

What's the budget?

0:41:080:41:10

We're looking between 15 and £17,000 I think.

0:41:100:41:14

That should make it nice and respectable, for prospective rentals.

0:41:140:41:19

-Yeah.

-The rewiring, I'm hoping for mate's rates from my cousin, so!

0:41:190:41:25

I'd HOPE so! It's not mate, it's family!

0:41:250:41:28

So I'm looking around about that, I'd be quite happy.

0:41:280:41:33

And are you going to get your hands dirty? Do you do a lot of the work?

0:41:330:41:36

I'd like to say I was, but unfortunately I'm not very handy!

0:41:360:41:39

The only thing handy about me is I live round the corner!

0:41:390:41:43

I'm not a trader or anything,

0:41:430:41:46

so I'll be calling friends in and local tradesmen

0:41:460:41:50

will do most of the work in here.

0:41:500:41:53

I'll probably help ripping the garden up and sorting that out,

0:41:530:41:56

but no - a project manager, I think!

0:41:560:41:58

Sometimes it is best to leave it to the professionals!

0:41:580:42:02

It's always handy if you are handy,

0:42:020:42:05

but it's always good to know your limits.

0:42:050:42:07

You might begrudge getting the professionals in, but you've

0:42:070:42:10

got to weigh up how long it will take you

0:42:100:42:13

and how good a finish you would do.

0:42:130:42:15

A bad finish can cost you money and time is money in property.

0:42:150:42:19

John has a timescale of four to five months

0:42:190:42:22

and I think he's making a wise choice.

0:42:220:42:24

And then, once it's done, on the rental market.

0:42:270:42:29

-And you, back in the auction?

-Possibly! I've got the bug, now.

0:42:290:42:33

I found it really interesting.

0:42:330:42:35

It was the first time I'd ever been and I really found it interesting.

0:42:350:42:38

I was there with my brother-in-law

0:42:380:42:40

-and we were joking about being on the show, actually!

-Were you?!

0:42:400:42:43

So I was quite shocked when I was approached!

0:42:430:42:45

-Were you happy with what you paid for this?

-Absolutely, yes.

0:42:450:42:48

I mean, I went there with the thought of... I think the guide price was 65.

0:42:480:42:54

-I would have kicked myself if I hadn't gone.

-Good. Congratulations.

0:42:540:42:59

-Thanks very much, Martin.

-Look forward to seeing how you get on.

0:42:590:43:02

Cheers.

0:43:020:43:03

Well, I think John's got a good house for his first investment property.

0:43:030:43:07

How's he going to get on sorting it out?

0:43:070:43:09

A reasonable budget,

0:43:090:43:11

reasonable timescale - it should all go to plan.

0:43:110:43:14

You never know! You can find out later in the show.

0:43:140:43:17

Well, it's been several months now since we last saw those properties.

0:43:200:43:23

Has any work been done? Do they look exactly the same?

0:43:230:43:26

Let's go back and find out.

0:43:260:43:28

SEAGULLS CRY

0:43:280:43:30

Back now to a spot I used to holiday at as a little girl. Sunny Margate!

0:43:320:43:37

It was here that I met Steve and Louise,

0:43:370:43:39

who had bought this property for 126,000.

0:43:390:43:43

Consisting of three one-bed flats and two bedsits,

0:43:430:43:46

it already had tenants in the three flats,

0:43:460:43:49

so we were only able to see the two bedsits.

0:43:490:43:52

But what I did see showed real potential

0:43:520:43:55

and experienced renovators Steve and Louise agreed.

0:43:550:43:59

What are you going to do to change this?

0:44:030:44:06

This is currently situated as two bedsits, which potentially,

0:44:060:44:10

the yield would be better, but it's not really for us.

0:44:100:44:15

Louise and I are going to turn this into another one-bedroom flat,

0:44:150:44:19

which we aim to do over the next six to eight weeks.

0:44:190:44:23

We'll look at all the common areas and bring them up to

0:44:230:44:26

something nicer, give the outside facade a face-lift, as well.

0:44:260:44:30

Having existing tenants could be problematic,

0:44:320:44:35

but Steve and Louise were relaxed about it,

0:44:350:44:37

plus they own the freehold to the building, which was a big bonus.

0:44:370:44:42

We've returned two months later to see how the couple have progressed.

0:44:420:44:46

As promised, the two poky bedsits have been

0:45:090:45:12

turned into a desirable one-bed flat, as Louise explains.

0:45:120:45:17

So originally, this would have been the entrance hall to bedsit two

0:45:180:45:22

and three.

0:45:220:45:24

So the doors were here, this is bedsit two, bedsit three.

0:45:240:45:28

Partition wall here and here, which we've taken down.

0:45:280:45:32

We've put the beautiful kitchen in

0:45:320:45:34

and the new en suite. So we've made it a beautiful one-bedroom flat.

0:45:340:45:39

Along with the new kitchen and en suite, they've also created a nice

0:45:410:45:45

outdoor decked area

0:45:450:45:46

that leads off the bedroom, which is a lovely bonus.

0:45:460:45:50

True to their word,

0:45:500:45:51

Steve and Louise have also repainted the corridor and communal stairway,

0:45:510:45:55

as well as re-carpeting throughout,

0:45:550:45:58

therefore improving it for the existing tenants.

0:45:580:46:01

The communal area, which once housed the toilet

0:46:030:46:06

and shower for the bedsits has now been turned into a kitchen,

0:46:060:46:09

thanks to a discovery that Steve wasn't expecting.

0:46:090:46:12

We're in the communal area. Our plans slightly changed here

0:46:170:46:20

because previously there was a WC and toilet in this room.

0:46:200:46:22

We realised that behind that wall,

0:46:220:46:24

there's actually a complete bathroom, so that's no longer required.

0:46:240:46:28

We've had that all removed.

0:46:280:46:30

Turns out one of the locked doors we couldn't get access to

0:46:300:46:33

on the first floor housed a shower room used by flat five,

0:46:330:46:38

so that has changed the way they're now looking at this space.

0:46:380:46:41

If they carry out a plan to put a shower room in that flat,

0:46:410:46:44

then they can turn the current utility area,

0:46:440:46:47

newly-discovered shower room, toilet and hall into a small,

0:46:470:46:51

separate fifth unit, meaning five units rather than four -

0:46:510:46:55

potentially improving any possible rental yield for Steve and Louise.

0:46:550:47:00

As with our first visit, flat one, four and five are occupied,

0:47:030:47:08

although flat four did have a change of tenant - which gave Louise and

0:47:080:47:12

her sister the opportunity to nip in and give it a quick lick of paint.

0:47:120:47:16

The whole building now is looking brighter, fresher

0:47:190:47:23

and more desirable -

0:47:230:47:24

perfect for the rental market that the couple want to attract.

0:47:240:47:28

# Now come and meet me

0:47:280:47:31

# On the sunny road... #

0:47:310:47:34

I'm most pleased with the property.

0:47:340:47:36

I couldn't really visualise how it was going to look

0:47:360:47:40

and when we came down and the wall had been knocked down...

0:47:400:47:43

The guys have worked so hard and we just walked in and it's...

0:47:430:47:47

We're so pleased with all of it. It looks absolutely fantastic.

0:47:470:47:51

I took the role, originally I did the drawings of the kitchen

0:47:510:47:54

and bathroom and layout

0:47:540:47:55

and then I very cleverly passed it all on to Louise who's been down here

0:47:550:47:58

running around after materials, making sure it all happens.

0:47:580:48:01

-Done a fantastic job!

-Thank you!

0:48:010:48:04

Yeah, quite right, too!

0:48:040:48:06

Louise and the team of contractors have done a great job.

0:48:060:48:10

But how is their original timescale looking?

0:48:100:48:12

Our initial thoughts were it would take six to eight weeks

0:48:150:48:17

to do the property.

0:48:170:48:18

We started a little bit behind because of having to renovate

0:48:180:48:21

flat four and then my main business has been really busy

0:48:210:48:25

and I used the contractors that we employed here to

0:48:250:48:28

work on my main business, so in fact, we did start late,

0:48:280:48:31

but this whole property was done in just under two weeks.

0:48:310:48:34

When we initially purchased the property,

0:48:340:48:37

we set ourselves a target of between £15-£20,000 as a budget

0:48:370:48:40

without really having a good look at the property.

0:48:400:48:43

We've incurred a little bit of extra expense

0:48:430:48:45

because we have now done flat four, which we weren't expecting to

0:48:450:48:48

at that point, but we're coming in around about the £13,500 mark.

0:48:480:48:51

But we have still got some bills to come in and we've still got

0:48:510:48:55

some more works that we intend to do to further improve the property.

0:48:550:48:59

So, as it stands, Louise

0:48:590:49:00

and Steve have invested a total of £139,500

0:49:000:49:05

and their plans to rent the properties out are going really well,

0:49:050:49:08

with all the flats being tenanted -

0:49:080:49:11

including the newly-renovated one-bed,

0:49:110:49:13

which has a tenant moving in shortly.

0:49:130:49:15

So, with these seaside properties bobbing along nicely,

0:49:190:49:22

it will be interesting to see what two local property experts

0:49:220:49:26

think of the renovation - based on the bits they have access to, of course.

0:49:260:49:31

It's my second time to the property.

0:49:310:49:33

The changes they've made have been very good, they're quite basic

0:49:330:49:36

but they've improved the property immensely.

0:49:360:49:38

So, the agent who first saw it thinks the property has improved,

0:49:380:49:41

but improved ENOUGH? What about values?

0:49:410:49:45

If the whole property were to be sold with the four dwellings, I

0:49:450:49:48

would expect it to achieve probably no more than about £200-£210,000.

0:49:480:49:53

If the owners were considering selling this property as a whole,

0:49:530:49:57

I would consider a marketing value of £270,000.

0:49:570:50:02

We had an initial offer just after completion of 250,

0:50:020:50:06

so I think somewhere between 250 and 270 now we've done the work,

0:50:060:50:10

considering the yield, would be a reasonable figure.

0:50:100:50:13

210 may be a little on the low side!

0:50:130:50:16

So, if we take that offer of 250,000, that would mean

0:50:170:50:21

a potential pre-tax profit of a huge £110,500,

0:50:210:50:26

minus taxes and expenses.

0:50:260:50:28

But even in the face of that stunning profit,

0:50:280:50:31

the pair still only have eyes for rental.

0:50:310:50:34

In terms of this particular flat for rental, I would expect it to

0:50:370:50:40

achieve approximately £400-£450 per calendar month.

0:50:400:50:45

For rental income per month, it would be £400.

0:50:450:50:51

So, that would boost the already impressive yield

0:50:510:50:53

of 11% for the other flats in the property

0:50:530:50:56

to a whopping 13%,

0:50:560:50:59

making this project a HUGE success -

0:50:590:51:02

and Louise a very proud lady.

0:51:020:51:05

I've really enjoyed it, actually.

0:51:070:51:09

Steve's done a lot of them in the past and this has been...

0:51:090:51:12

I've had more of a rein on this one,

0:51:120:51:15

so it's been my little project, really. So it's been really good.

0:51:150:51:18

Really enjoyed it.

0:51:180:51:19

A great result in Margate, there.

0:51:220:51:24

So, will it be the same story here in Corby,

0:51:240:51:27

where earlier I met John,

0:51:270:51:29

who was also hoping that the rental market would provide healthy

0:51:290:51:32

returns for him when he bought this four-bed, mid-terraced house?

0:51:320:51:36

The housing market is starting to pick up a bit and I thought it was a good time to invest.

0:51:370:51:41

So of all the ones you could've picked, why this one?

0:51:410:51:44

Just price, really.

0:51:440:51:45

I looked at it three or four days before the auction

0:51:450:51:48

and was quite impressed.

0:51:480:51:50

It's needing a bit of work done,

0:51:500:51:51

but I think there's room for an investment to make a profit.

0:51:510:51:55

Five months later, we've returned to find out how it all went.

0:51:550:51:59

I'm glad to see that John took my advice

0:52:030:52:05

and got rid of that wall between the kitchen and the dining room.

0:52:050:52:09

No expense has been spared - the finish is lovely,

0:52:100:52:13

with high-quality fixtures and fittings and it's

0:52:130:52:16

great to see that those polystyrene ceiling tiles are no more.

0:52:160:52:21

It was a necessity to get rid of them anyway, because they're a fire

0:52:230:52:27

hazard, so we had no choice other than to get rid of them.

0:52:270:52:30

It's been a lot of hard work and I've had some good help from friends

0:52:300:52:33

and family and that.

0:52:330:52:34

A lot of professional builders have been in, friends of mine

0:52:340:52:38

and they've done a great job, and it's been great to watch it from

0:52:380:52:42

being a bit tired looking to what it's turned out to be

0:52:420:52:45

so I'm really pleased with it.

0:52:450:52:47

But it hasn't all been plain sailing.

0:52:490:52:52

The biggest challenge had to be the garden - it took us

0:52:520:52:55

five or six skips to empty the place.

0:52:550:52:57

We had roots to dig out, three trees to bring down, bushes and of course

0:52:570:53:00

when we brought the bushes down, we had the high winds in January.

0:53:000:53:04

That took all the fencing out so added more to the budget,

0:53:040:53:08

having to replace the fences. But I'm pleased with the result,

0:53:080:53:12

really pleased with the way it's finished.

0:53:120:53:14

John is right to be pleased, it's a cracking job.

0:53:140:53:17

So I'm wondering if he turned out to lack handiness, as he claimed?

0:53:170:53:22

I done a wee bit - I was out in the garden,

0:53:220:53:24

helping a couple of times and knocking the walls down.

0:53:240:53:28

Just generally tidying up, really. But I've enjoyed it.

0:53:280:53:31

It's the first time I've ever done anything like this and whether I've

0:53:310:53:35

got the bug, I don't know - I might have, but I really enjoyed doing it.

0:53:350:53:39

Yes, he's got the bug, all right!

0:53:390:53:41

John intended this house as a rental, so is that still the plan?

0:53:410:53:45

I've got somebody moving in next week,

0:53:450:53:47

so I've got a tenant ready, which is pleasing.

0:53:470:53:51

We're probably going to look at the next ten years, I'd imagine,

0:53:510:53:54

renting it out if we can.

0:53:540:53:56

Possibly selling from there and dare I say, semi-retirement? I don't know!

0:53:560:54:01

-We'll see.

-I like John's thinking.

0:54:010:54:04

Now, he'd given himself a budget of between 15 and £17,000 -

0:54:040:54:09

how did he get on with that?

0:54:090:54:10

On the budget side, I went over, but we had the hidden extras to pay

0:54:100:54:16

for - some of the windows needed replaced, some of the exterior doors.

0:54:160:54:22

The fencing after the wind had blown it down in January...

0:54:220:54:26

It took me up to the £20,000 mark.

0:54:260:54:29

Oops! These things quickly add up,

0:54:290:54:31

but at least he stuck to his five-month timescale - just.

0:54:310:54:34

It took us the full five months,

0:54:360:54:38

in fact we only finished it about ten hours ago!

0:54:380:54:40

Touching up the paintwork and things like that.

0:54:400:54:43

A general tidy up, really,

0:54:430:54:45

because a lot of dust with the plastering being done.

0:54:450:54:48

But ten hours ago we finished, so we couldn't be much nearer!

0:54:480:54:51

So, yeah, happy.

0:54:510:54:52

So, that £72,000 sale price added to £20,000 renovations costs

0:54:530:54:59

come to £92,000.

0:54:590:55:02

Did local property experts think all that hard work was worth it?

0:55:020:55:07

The fittings are immaculate throughout.

0:55:070:55:10

The flooring, the kitchen, the bathroom,

0:55:100:55:13

-all the fittings are second to none.

-The finish is very, very high.

0:55:130:55:18

In fact, I would say he's gone a little bit over-the-top for the area

0:55:180:55:22

that the property was within, but the finish is outstanding.

0:55:220:55:25

High-class and he will get the money that he deserves for the home.

0:55:250:55:29

I think that the kitchen/diner is far better this way

0:55:290:55:33

than it would have originally been with a separate dining room.

0:55:330:55:36

So, we're all in agreement, then.

0:55:360:55:38

John has spent a total of £92,000 on this property

0:55:380:55:42

and he does intend to rent, but we have to ask what it could sell for.

0:55:420:55:46

I mean, it would be rude not to.

0:55:460:55:49

I would place this property for sale onto the market for £130,000

0:55:490:55:53

to achieve a figure very close to that.

0:55:530:55:56

If I was to market this property, I'd place it onto the market

0:55:560:55:59

for £130,000,

0:55:590:56:00

with a view of achieving anywhere between £125,000-130,000.

0:56:000:56:06

Yeah, pleased with that. That's a good profit.

0:56:060:56:09

I mean, the amount of work we put into it, I think it's a

0:56:090:56:12

realistic price. That's round about what we thought, anyway.

0:56:120:56:16

Even that lowest estimate would give John a potential profit

0:56:160:56:19

of £33,000,

0:56:190:56:21

minus the usual taxes and expenses.

0:56:210:56:23

But as he already has a tenant lined up,

0:56:230:56:26

what do our experts think he could achieve on the rental market?

0:56:260:56:29

For rental, I would place this property onto

0:56:290:56:31

the market at between 625 and £675 per calendar month.

0:56:310:56:38

I think the landlord could achieve on the rental market

0:56:380:56:41

anywhere between 625 and £675 per calendar month.

0:56:410:56:46

At the lowest figure,

0:56:460:56:48

that would give John a healthy yield of 8%.

0:56:480:56:51

Yes, that's fair enough.

0:56:510:56:53

I've got a tenant moving in very shortly who's offered more money than

0:56:530:56:57

that, so I'm quite pleased with those sorts of figures.

0:56:570:57:01

We've got a bit more and I think the house proves it was worth a little bit more.

0:57:010:57:06

Yes, that high-end finish has obviously paid its way

0:57:060:57:09

by helping John to get the best possible rental income.

0:57:090:57:12

He's done well, with his first foray into the property market.

0:57:120:57:16

I'm very pleased with it.

0:57:160:57:18

A lot of people, friends and family, put a lot of hard work into it

0:57:180:57:21

and a lot of efforts have come to show

0:57:210:57:23

we've got a nice wee property here and I'm very, very pleased.

0:57:230:57:27

Very pleased.

0:57:270:57:29

That's great to hear. Will he be going back to the auction, then?

0:57:290:57:34

Yes, I think I've got the bug now!

0:57:340:57:36

I've really enjoyed doing this and I'm looking at a couple of houses now

0:57:360:57:39

in the three-bedroom, two-bedroom range.

0:57:390:57:43

They're at auction as well, so you never know!

0:57:430:57:47

I think I've got the bug!

0:57:470:57:49

So join us next time for more auction ups and downs.

0:57:510:57:54

Yes, from bungalows to basements to building sites...

0:57:540:57:58

-It's all here on Homes Under The Hammer.

-See you next time.

0:57:580:58:01

-Goodbye.

-Goodbye!

0:58:010:58:02

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