0:00:02 > 0:00:03Hello and welcome to the show.
0:00:03 > 0:00:06Over the years property has proved to be a rock-solid investment,
0:00:06 > 0:00:08despite the recent downturn.
0:00:08 > 0:00:09So where can you find lots of
0:00:09 > 0:00:11good-value properties for sale?
0:00:11 > 0:00:13At an auction, of course!
0:00:39 > 0:00:42Whether you're buying property as an investment or as somewhere
0:00:42 > 0:00:46to live, you want to make sure you get good value for money.
0:00:46 > 0:00:49- So, did the buyers on today's show manage that?- Let's find out.
0:00:49 > 0:00:51Here's what they bought.
0:00:53 > 0:00:56In London, I'm teetering on the edge.
0:00:56 > 0:01:00All in all...yeah, it's OK...
0:01:01 > 0:01:04While, in Westgate-On-Sea, Kent, I'm jumping right in.
0:01:04 > 0:01:07I always get a bit excited in the fresh air
0:01:07 > 0:01:11and when I'm near the beach, but this place is huge!
0:01:13 > 0:01:17And in Crewe, we find some stairs that should be beside the sea.
0:01:17 > 0:01:21They are not building regulations- compliant, I would guess.
0:01:21 > 0:01:23You'd expect to see something like this on a boat.
0:01:23 > 0:01:26All of these properties have been sold at auction.
0:01:26 > 0:01:29We'll find out who bought them and what they paid for them
0:01:29 > 0:01:31when they went under the hammer.
0:01:31 > 0:01:32Your lot, sir. Well done.
0:01:38 > 0:01:41Now it's time for a little excursion.
0:01:41 > 0:01:43No, sadly not to Switzerland,
0:01:43 > 0:01:49but the swish and vaguely Swiss Cottage, in London NW6.
0:01:49 > 0:01:52There's not a cuckoo clock in sight.
0:01:54 > 0:01:56What can I say about Swiss Cottage?
0:01:56 > 0:02:02A very popular area close to the extremely desirable South Hampstead.
0:02:02 > 0:02:04Lots of Tubes, easy access into London.
0:02:04 > 0:02:09Euston is only six minutes away. Nice feeling of community, as well.
0:02:09 > 0:02:11Quite arty and crafty.
0:02:11 > 0:02:13The property I'm here to see is a one-bedroom flat in this
0:02:13 > 0:02:18fairly impressive looking building. Guide price was £280,000 plus.
0:02:18 > 0:02:20Let's take a look.
0:02:20 > 0:02:22And our flat is on the top floor of the building
0:02:22 > 0:02:28and it still has 95 years on the lease left, which is good news.
0:02:28 > 0:02:32But it has a train line running out the back, which is less good.
0:02:35 > 0:02:39So, ex-local authority - we're expecting reasonable proportions.
0:02:39 > 0:02:42One bedroom, that's it. Not a bad size.
0:02:42 > 0:02:47This little entrance area here. That's your bathroom and loo.
0:02:47 > 0:02:50Looks a bit tired and dated.
0:02:50 > 0:02:54Through into your main living area. Now...look at the...
0:02:55 > 0:02:59Look at the height of the ceilings!
0:02:59 > 0:03:03Normally, I would say this is fantastic.
0:03:03 > 0:03:04Somehow...
0:03:05 > 0:03:08it makes the flat feel a little bit...strangely claustrophobic.
0:03:08 > 0:03:10I don't know why that is.
0:03:10 > 0:03:14I think this is a classic case where good interior design
0:03:14 > 0:03:16is going to make all the difference.
0:03:16 > 0:03:19How you paint and decorate this will definitely transform the flat.
0:03:19 > 0:03:22But a nice big windows, which is good.
0:03:22 > 0:03:23And through into the kitchen,
0:03:23 > 0:03:27which is semi-open plan with the lounge area.
0:03:27 > 0:03:29Obviously needs completely refitting,
0:03:29 > 0:03:36but this bit of the flat is really quite respectable in terms of size.
0:03:36 > 0:03:37And all in all...
0:03:37 > 0:03:39yeah,
0:03:39 > 0:03:40it's OK...
0:03:40 > 0:03:42Not completely convinced yet.
0:03:43 > 0:03:47# What you get is what you see
0:03:47 > 0:03:50# There ain't nothing more to it
0:03:50 > 0:03:52# If what you get is what you see
0:03:52 > 0:03:56# Then I don't want your kind of love. #
0:03:59 > 0:04:01There really isn't much to this flat.
0:04:01 > 0:04:05What you CAN see is that it's tired, dated and,
0:04:05 > 0:04:07to appeal to the local market,
0:04:07 > 0:04:10it will need a top specification refurbishment -
0:04:10 > 0:04:14shiny new kitchen, state-of-the-art bathroom, quality wooden flooring,
0:04:14 > 0:04:18modern lighting, replumbed, rewired - the works.
0:04:18 > 0:04:22Now, it may or may not be the case in this instance, but something
0:04:22 > 0:04:25to be aware of and look out for when it comes to buying
0:04:25 > 0:04:28ex-local authority or council housing
0:04:28 > 0:04:32is that often they make the buyer pay
0:04:32 > 0:04:36the seller's legal fees and that can run into many thousands of pounds.
0:04:36 > 0:04:39It will state it in the legal pack, so once again,
0:04:39 > 0:04:44it's a reason to read that legal pack before you buy the property.
0:04:44 > 0:04:49# You ought to take it all in and check it all out. #
0:04:49 > 0:04:52Yes, there are quite often little addendums which come with
0:04:52 > 0:04:56the sale of any property which may mean you might not get quite
0:04:56 > 0:05:01what you thought you were getting. So check, check and check again.
0:05:06 > 0:05:10The flat is so small it didn't take long to check out.
0:05:10 > 0:05:13What does a local estate agent think of it?
0:05:13 > 0:05:16I think the property has a lot of potential.
0:05:16 > 0:05:19It's got high ceilings, it's very light and bright. Great aspects.
0:05:19 > 0:05:23It's on a very good position. The road is a bit noisy.
0:05:23 > 0:05:27The railway behind makes it a little bit unattractive to some buyers,
0:05:27 > 0:05:30but in general it offers a lot of scope.
0:05:30 > 0:05:34But what should the renovation focus on to maximise the scope?
0:05:34 > 0:05:38The kitchen and bathroom definitely need redoing.
0:05:38 > 0:05:43The floor covering needs attention. The general decoration needs doing,
0:05:43 > 0:05:44the windows improving.
0:05:44 > 0:05:47But with the aspect and position of the property, it would really
0:05:47 > 0:05:50make sense to do those things to enhance it.
0:05:50 > 0:05:54The flat was guided at £280,000 plus,
0:05:54 > 0:05:58but there's got to be at least £20,000 worth of work
0:05:58 > 0:06:00to get it up to a good specification,
0:06:00 > 0:06:02so would it be worth doing?
0:06:02 > 0:06:05Depending on the quality of work that is carried out,
0:06:05 > 0:06:09I think the value could be increased to about £420,000.
0:06:09 > 0:06:12What?! Did he say £420,000?
0:06:12 > 0:06:15I'm liking this flat more and more now!
0:06:15 > 0:06:17So what about the rent?
0:06:18 > 0:06:22I would think that the value is between £1,500 per calendar month
0:06:22 > 0:06:25and 1,560 per calendar month.
0:06:33 > 0:06:37The flat is certainly in a popular and well-located area,
0:06:37 > 0:06:42and decent enough with a chance to really add value, I think.
0:06:42 > 0:06:45Let's see who agreed when it went under the hammer.
0:06:49 > 0:06:52So this is lot 231.
0:06:52 > 0:06:55Second-floor one-bed flat. Who'd like to start me on this?
0:06:55 > 0:06:58300.
0:06:58 > 0:07:01Must be cheap. Thank you, 300 I've got.
0:07:01 > 0:07:03How much?
0:07:03 > 0:07:06305. OK. 310.
0:07:06 > 0:07:08315.
0:07:08 > 0:07:09320, sir.
0:07:09 > 0:07:12320. 325.
0:07:12 > 0:07:14330.
0:07:14 > 0:07:16335.
0:07:16 > 0:07:18No? 340?
0:07:18 > 0:07:20336, if it helps?
0:07:21 > 0:07:22336?
0:07:22 > 0:07:24Yeah, 336. 337.
0:07:24 > 0:07:26338.
0:07:26 > 0:07:28338 coming in, new place. 339.
0:07:28 > 0:07:30340.
0:07:30 > 0:07:33340. 341.
0:07:33 > 0:07:34OK, 345.
0:07:34 > 0:07:36346.
0:07:36 > 0:07:37347.
0:07:37 > 0:07:39348.
0:07:39 > 0:07:40349.
0:07:40 > 0:07:42350.
0:07:42 > 0:07:43351.
0:07:43 > 0:07:45352.
0:07:45 > 0:07:46353.
0:07:46 > 0:07:48354.
0:07:48 > 0:07:50355.
0:07:50 > 0:07:52356. New place at the front.
0:07:52 > 0:07:54357.
0:07:54 > 0:07:55357.
0:07:55 > 0:07:56358.
0:07:56 > 0:07:57359.
0:07:57 > 0:07:59360.
0:07:59 > 0:08:02361.
0:08:02 > 0:08:03360 at the front here.
0:08:03 > 0:08:06It's against the gentleman on my right at the back. Anybody else?
0:08:06 > 0:08:09If not, 360 for the first...
0:08:09 > 0:08:11360 for the second...
0:08:11 > 0:08:14360 for the third and final time... Are we all done?
0:08:15 > 0:08:16Sold - 360.
0:08:18 > 0:08:23So, for £360,000 - £80,000 over the guide price -
0:08:23 > 0:08:27the one-bed Swiss Cottage flat was bought by Arsalan.
0:08:27 > 0:08:30Arsalan lives and works in London
0:08:30 > 0:08:33and he currently owns two other properties in the capital.
0:08:35 > 0:08:38- Arsalan, really great to meet you. Congratulations.- Thank you.
0:08:38 > 0:08:41Tell me why you wanted to buy this place.
0:08:41 > 0:08:45There were three reasons that stood out. First of all, the location.
0:08:45 > 0:08:48I used to live 5-10 minutes away towards Hampstead,
0:08:48 > 0:08:50so I know the area very well.
0:08:50 > 0:08:53Also, within Swiss Cottage it's very close to the Jubilee Line and
0:08:53 > 0:08:56less than five minutes walk to South Hampstead rail, so very convenient.
0:08:56 > 0:08:58Second thing is, visiting the flat,
0:08:58 > 0:09:01what I found is, the communal areas are quite presentable.
0:09:01 > 0:09:04Often the risk with flats are you're sometimes at the mercy
0:09:04 > 0:09:06of the freeholder.
0:09:06 > 0:09:08But this seems to be well maintained,
0:09:08 > 0:09:11so that obviously helps in terms of the appeal.
0:09:11 > 0:09:13And finally, coming into the flat,
0:09:13 > 0:09:16structurally it seems quite robust.
0:09:16 > 0:09:19Obviously it needs to be completely cleaned and refurbished,
0:09:19 > 0:09:21but there didn't seem to be any big structural issues,
0:09:21 > 0:09:25so I could focus on the decoration side of things.
0:09:25 > 0:09:28You're very structured in your thoughts, aren't you?
0:09:28 > 0:09:31- Is this something you do, then?- Yes. Although I've only started recently.
0:09:31 > 0:09:34I started doing this last year.
0:09:34 > 0:09:36Before that - which probably explains my thought process -
0:09:36 > 0:09:38I trained as a chartered accountant
0:09:38 > 0:09:41and then worked in the City for six years,
0:09:41 > 0:09:44where I was analysing companies for stocks and shares and stuff.
0:09:44 > 0:09:47So we had to be very methodical and spreadsheet driven.
0:09:47 > 0:09:48So I think that helped.
0:09:48 > 0:09:52# And he told us what he saw and it's easy to see
0:09:52 > 0:09:55# It's going by the book. #
0:09:59 > 0:10:02As you might expect of Arsalan, he checked everything out
0:10:02 > 0:10:06about the flat, from the area to the potential end price,
0:10:06 > 0:10:08hoping to leave nothing to chance.
0:10:08 > 0:10:11And perhaps it's the City stockbroker in him
0:10:11 > 0:10:14that ideally likes to sell on his properties ASAP.
0:10:14 > 0:10:19Quick in, quick out. Buy, renovate, sell, move on.
0:10:21 > 0:10:23So what's the plan for it?
0:10:23 > 0:10:26Essentially, a complete refurbishment.
0:10:26 > 0:10:28Starting with the bathroom.
0:10:28 > 0:10:30I'm not sure if I'm going to strip out the bath tub
0:10:30 > 0:10:32and just keep a shower unit.
0:10:32 > 0:10:36The target is going to be professionals or young couples,
0:10:36 > 0:10:40so maybe there is less demand for a tub and you can make it more modern with a shower unit.
0:10:40 > 0:10:44Kitchen, completely new appliances, fully integrated.
0:10:44 > 0:10:47New carpet, new flooring, do the walls.
0:10:47 > 0:10:51The only semi-structural thing would be to take out the boiler and replace
0:10:51 > 0:10:55it with a combi boiler to make more space and bring it up to date.
0:10:55 > 0:11:00- What's the budget?- It's probably going to be round about 25,000.
0:11:00 > 0:11:02And the timescale?
0:11:02 > 0:11:04Hopefully we'll start work in a couple of days
0:11:04 > 0:11:08- and it should be about 3-4 weeks, I think.- Right. So what's next?
0:11:08 > 0:11:12After this there is another house I've been working on
0:11:12 > 0:11:14which I'm trying to release up.
0:11:14 > 0:11:17I've also started to think about outside London as well,
0:11:17 > 0:11:20because I think London is very competitive.
0:11:20 > 0:11:24I think outside London as well you don't have as many fixed entry
0:11:24 > 0:11:27and exit costs like stamp duty, the big one. So there's more potential.
0:11:27 > 0:11:31And if I do want to buy a property and hold it,
0:11:31 > 0:11:33you get much better rental yields.
0:11:33 > 0:11:36I'm also looking around London for other projects.
0:11:36 > 0:11:39- You've taken to this like a duck to water.- I don't know yet.
0:11:39 > 0:11:43- Ask me in a month.- No, the way you're talking - bang, bang, bang.
0:11:43 > 0:11:46Congratulations. It's been fascinating talking to you.
0:11:46 > 0:11:49- Thank you very much.- Good luck. - Thanks.
0:11:49 > 0:11:52Well, Arsalan certainly seems to know what he's talking about
0:11:52 > 0:11:56and his analytical approach can often work very well
0:11:56 > 0:11:58when it comes to property investing.
0:11:58 > 0:12:01How will he get on sorting the flat out?
0:12:01 > 0:12:02Find out later in the show.
0:12:05 > 0:12:07GULLS CRY
0:12:07 > 0:12:11Phew! Well, after Arsalan's rapid-fire approach to his property,
0:12:11 > 0:12:14it's time to slow things down.
0:12:15 > 0:12:19The health benefits of a break beside the sea.
0:12:19 > 0:12:21Fresh air, relaxation,
0:12:21 > 0:12:25a bit of gentle exercise wandering these lovely beaches
0:12:25 > 0:12:27means a visit to Westgate-On-Sea,
0:12:27 > 0:12:30on the southern tip of England,
0:12:30 > 0:12:32is just what the doctor ordered.
0:12:34 > 0:12:37The property I'm here to see is literally a couple of minutes walk
0:12:37 > 0:12:40from that lovely beach and a couple of minutes walk
0:12:40 > 0:12:44from the town centre, which is just over there.
0:12:44 > 0:12:47It's a three-bedroom ground and lower-ground floor maisonette
0:12:47 > 0:12:50in this lovely looking old Victorian building.
0:12:50 > 0:12:53The guide price, £60,000-£65,000.
0:12:53 > 0:12:55I can't wait to see this one.
0:12:56 > 0:13:00Many of Westgate's buildings were built during the Victorian era
0:13:00 > 0:13:03as part of a development plan to attract middle-class people
0:13:03 > 0:13:05to a seaside resort.
0:13:05 > 0:13:08And nowadays there are many holiday homes here.
0:13:09 > 0:13:11I always get a bit excited in the fresh air
0:13:11 > 0:13:15and when I'm near the beach, but this place is huge!
0:13:15 > 0:13:19There's an amazing lounge right there.
0:13:19 > 0:13:22Cornicing, wonderful proportions, that beautiful bay window.
0:13:22 > 0:13:24Loads of space.
0:13:24 > 0:13:29And then you walk into a bit of a throwback from the late '60s, '70s.
0:13:29 > 0:13:33Wow, look at the doors, the panelling here, the carpets!
0:13:33 > 0:13:38But look down there. Loads and loads of space.
0:13:38 > 0:13:41You can see this is split level. Fantastic ceiling height.
0:13:41 > 0:13:44You've got a little loo there. The kitchen.
0:13:44 > 0:13:47Round here into the sitting-room, which I'm sure you could
0:13:47 > 0:13:51actually get rid of that partition wall and really open this space up.
0:13:51 > 0:13:53Lovely!
0:13:53 > 0:13:57Look at the old fire. Nice little brown rug laid out in front.
0:13:57 > 0:14:00There's so much you could do with this property.
0:14:00 > 0:14:03I'm really excited to have a look downstairs
0:14:03 > 0:14:04and see the full potential.
0:14:14 > 0:14:16It's an upside-down layout.
0:14:16 > 0:14:19The kitchen, living area and cloakroom upstairs
0:14:19 > 0:14:22and then downstairs to the bedrooms.
0:14:22 > 0:14:24You'd want to keep all the great storage
0:14:24 > 0:14:28but, as groovy as this carpet is, I think you'd want to replace it!
0:14:30 > 0:14:33And so the groovy theme continues.
0:14:33 > 0:14:37You'd need to do a lot of updating in this flat. But I love the space.
0:14:37 > 0:14:40You've got a downstairs bathroom, fantastic huge utility room.
0:14:40 > 0:14:43I mean, what a bonus to have that.
0:14:43 > 0:14:46And it gets a little more depressing in here.
0:14:46 > 0:14:49Straightaway you can see it's damp.
0:14:49 > 0:14:51Everywhere you look.
0:14:51 > 0:14:53The wallpaper literally is...
0:14:53 > 0:14:57The plaster's all blown, so you need to get that sorted out.
0:14:57 > 0:15:00It just feels dark, damp...
0:15:00 > 0:15:03and dungeon-like.
0:15:05 > 0:15:08# ..Where it's dark as a dungeon
0:15:08 > 0:15:11# Damp as the dew... #
0:15:13 > 0:15:16Well, the seaside feels like a very distant thought
0:15:16 > 0:15:19in this lower ground floor, and the bad news is,
0:15:19 > 0:15:24the bathroom down here is missing a vital component, in my opinion.
0:15:24 > 0:15:25A toilet!
0:15:25 > 0:15:27And while we're at it,
0:15:27 > 0:15:30there's a second bedroom down here which is also a bit damp.
0:15:30 > 0:15:33But, thankfully, it does have a bay window.
0:15:33 > 0:15:35Then there's a bit of a mystery tour
0:15:35 > 0:15:38when it comes to finding the third bedroom,
0:15:38 > 0:15:41so I guess that means what I THOUGHT was the utility room,
0:15:41 > 0:15:44well, is probably the third bedroom.
0:15:44 > 0:15:46I suppose that could be fixed,
0:15:46 > 0:15:48but there is another stumbling block,
0:15:48 > 0:15:51which means I'm not going to be sending out
0:15:51 > 0:15:53my wish-you-were-here postcard just yet.
0:15:55 > 0:15:56There's always a but, isn't there?
0:15:56 > 0:15:59And in this case, it's nothing to do with the flat itself.
0:15:59 > 0:16:02It's to do with the length of the lease.
0:16:02 > 0:16:05In this case, there are only 64 years remaining
0:16:05 > 0:16:08on the current lease that comes with the flat.
0:16:08 > 0:16:10Now, what that means is that mortgage lenders
0:16:10 > 0:16:13might not be so keen to get involved with this one
0:16:13 > 0:16:16and, in turn, makes it less attractive to potential buyers.
0:16:16 > 0:16:19So, you'll have to speak to the freeholder of the building
0:16:19 > 0:16:22to see about extending that lease,
0:16:22 > 0:16:25and that could cost you a fair bit of money.
0:16:25 > 0:16:29So, here's my tip. Read the legal pack and check it out.
0:16:34 > 0:16:38I'm feeling slightly more cheered by the shared garden at the rear
0:16:38 > 0:16:40and, of course, there's that guide price
0:16:40 > 0:16:42of 60,000 to 65,000 to consider.
0:16:45 > 0:16:47A local estate agent came along
0:16:47 > 0:16:51to tell us a bit more about the market in Westgate-on-Sea.
0:16:52 > 0:16:55I think, given the location of the property
0:16:55 > 0:16:59and its proximity to the beach, I think it's going to appeal to...
0:16:59 > 0:17:02a great deal of out-of-town buyers and a lot of out-of-town interest.
0:17:02 > 0:17:04Therefore, they are going to be expecting
0:17:04 > 0:17:06quite a nice finish on the property as well,
0:17:06 > 0:17:08so I think something just above...
0:17:08 > 0:17:12little bit above the standard sort of carpets and curtains,
0:17:12 > 0:17:14I think, would do them very well.
0:17:14 > 0:17:18The broadest market of potential buyers is what you want
0:17:18 > 0:17:20if you intend to sell on.
0:17:20 > 0:17:22So, what could that resale value be?
0:17:22 > 0:17:25In my opinion, with the property done to a good standard,
0:17:25 > 0:17:29I think the value should be between 120,000 and 125,000.
0:17:29 > 0:17:31For a rental value of the property,
0:17:31 > 0:17:37I would estimate to achieve between £600 and £625 per calendar month.
0:17:37 > 0:17:40Well, it's a great property with bags of potential
0:17:40 > 0:17:42right in the heart of Westgate-on-Sea.
0:17:42 > 0:17:45It's a spacious maisonette flat in a desirable area,
0:17:45 > 0:17:49just a stone's throw from that magnificent beach.
0:17:49 > 0:17:52Sort that lease out and you could have a real winner here.
0:17:52 > 0:17:55Let's see who spotted this great opportunity
0:17:55 > 0:17:57when it went under the hammer.
0:17:57 > 0:17:59Three-bedroom maisonette for improvement.
0:17:59 > 0:18:01Where do you want to start me on that one? Start me...
0:18:01 > 0:18:04£65,000, get me on the way.
0:18:04 > 0:18:06Do you want to say 60,000?
0:18:06 > 0:18:07Give me 55, then.
0:18:07 > 0:18:1155, I've got. Can I say 60? £60,000, I've got.
0:18:11 > 0:18:1362 now, if you like. 62.
0:18:13 > 0:18:1565. 67.
0:18:15 > 0:18:1767. At 68.
0:18:17 > 0:18:1969. And 70.
0:18:19 > 0:18:21And 1. 71.
0:18:21 > 0:18:2472 in the second row. 73.
0:18:24 > 0:18:26Is that 73? 73.
0:18:26 > 0:18:2874. 74.
0:18:28 > 0:18:3075.
0:18:30 > 0:18:33No. At £74,000. 75, I've got.
0:18:33 > 0:18:3676. 77.
0:18:36 > 0:18:38At 77. 78. And 9.
0:18:38 > 0:18:3979.
0:18:39 > 0:18:41Yep? No?
0:18:41 > 0:18:44£78,000, then, for the first time.
0:18:44 > 0:18:46£78,000, for the second time.
0:18:46 > 0:18:4979, I've got. And 80.
0:18:49 > 0:18:50And 1. 81.
0:18:50 > 0:18:53And 2. 82. And 3.
0:18:53 > 0:18:57At £82,000, in the pink shirt, again, for the first time.
0:18:57 > 0:18:59£82,000, for the second.
0:18:59 > 0:19:01Third and final time at £82,000.
0:19:01 > 0:19:04It's yours, sir. £82,000, on the telephone.
0:19:04 > 0:19:06Actually, it's not his.
0:19:06 > 0:19:09John was bidding on behalf of his friend Nathan.
0:19:10 > 0:19:13# ..Someday, someday
0:19:13 > 0:19:15# He's on the phone... #
0:19:16 > 0:19:19Nathan was on the other end of the phone,
0:19:19 > 0:19:22orchestrating the purchase of his first renovation project
0:19:22 > 0:19:24for a respectable 82,000.
0:19:27 > 0:19:31Nathan, who works in pharmaceutical sales, is raring to get going.
0:19:31 > 0:19:34I caught up with him back at the property.
0:19:34 > 0:19:37- Nathan, congratulations. - Thank you very much.
0:19:37 > 0:19:39So, here you are with your auction property,
0:19:39 > 0:19:42a stone's throw from one of my favourite beaches.
0:19:42 > 0:19:46- It's nice, isn't it? Nice spot. - I love Westgate-on-Sea.
0:19:46 > 0:19:47Yeah, it's nice. Up and coming.
0:19:47 > 0:19:49Why do you think Westgate is going places?
0:19:49 > 0:19:52Because we are literally up the road from Margate.
0:19:52 > 0:19:55Yeah, and there's a fast train link coming in as well.
0:19:55 > 0:19:57It keeps working its way further and further towards us,
0:19:57 > 0:19:59so that will always help.
0:19:59 > 0:20:03I think maybe someone from London might be interested in it.
0:20:03 > 0:20:05So, are you thinking of this as a holiday home?
0:20:05 > 0:20:10Probably not, no. I think probably a young family.
0:20:10 > 0:20:13I think it's a big property.
0:20:13 > 0:20:15I think if you are starting off,
0:20:15 > 0:20:18three-bedroom terraced house is quite expensive.
0:20:18 > 0:20:21This would be a nice way to get yourself a family home.
0:20:21 > 0:20:24Did you view the property prior to the auction?
0:20:24 > 0:20:29I did. I viewed this one, and one up the road, two months previous.
0:20:29 > 0:20:34So, I only at the very last minute decided to view this property,
0:20:34 > 0:20:37thinking that I'd already seen it before, and in actual fact,
0:20:37 > 0:20:38it was two doors up.
0:20:38 > 0:20:41- And was this one a better one? - This one was better.
0:20:41 > 0:20:43- Ooh, how lucky are you? - Yeah, very lucky.
0:20:43 > 0:20:45But not so lucky,
0:20:45 > 0:20:48because there's a whole lot of damp going on downstairs.
0:20:48 > 0:20:51It's great up here and you think, "Wow, views of the sea,"
0:20:51 > 0:20:55and then it's very dingy, very dark, very damp.
0:20:55 > 0:20:58Have you sort of had that checked out to any extent?
0:20:58 > 0:21:00I haven't had it checked out to any extent.
0:21:00 > 0:21:03What I do know about the property, it's been stood empty for two years.
0:21:03 > 0:21:06- Yeah.- It will be very cold, very damp.
0:21:06 > 0:21:08As you can tell from the decor,
0:21:08 > 0:21:11it's probably not had a lick of paint for 30 years.
0:21:11 > 0:21:14At the very least, I need to strip it all back, see what the problem is,
0:21:14 > 0:21:18and then get it replastered, so we'll set aside some money for that.
0:21:18 > 0:21:21So, you're not worried it might be a lot worse than you think?
0:21:21 > 0:21:23Because it's not just in that one downstairs room.
0:21:23 > 0:21:26- There's quite a few areas downstairs.- No, it's throughout.
0:21:26 > 0:21:28We'll see where it goes. We need to have a really good look first.
0:21:28 > 0:21:33- So, the big, bad no with this property is the lease.- It is.
0:21:33 > 0:21:37It was in the legal pack. Did you read about it in the legal pack?
0:21:37 > 0:21:40I did. Yeah, so it's got 64 years.
0:21:40 > 0:21:42I did a little bit of research beforehand.
0:21:42 > 0:21:46I spoke to the next-door neighbour, and his lease is 67,
0:21:46 > 0:21:49and he'd had a quote from the freeholder
0:21:49 > 0:21:51- of £6,000 to get it extended.- Right.
0:21:51 > 0:21:53So, it'll be a little bit more for me,
0:21:53 > 0:21:55because it's a little bit of a shorter lease,
0:21:55 > 0:21:57but I've allowed for that.
0:21:59 > 0:22:01Nathan has done his homework, which is spot-on,
0:22:01 > 0:22:04and he's allowed seven grand for that lease extension.
0:22:04 > 0:22:06There's good news,
0:22:06 > 0:22:08in that the owner of the block has a management company,
0:22:08 > 0:22:11which does entail paying £40 a month,
0:22:11 > 0:22:14but it does mean that the exterior of the building
0:22:14 > 0:22:15will get a spruce-up in due course.
0:22:18 > 0:22:21And, meanwhile, he has a £20,000 budget
0:22:21 > 0:22:25and a 12-week timescale to transform the inside.
0:22:25 > 0:22:27It needs a new central heating system putting in,
0:22:27 > 0:22:30it needs the old hot water tank taking out.
0:22:30 > 0:22:33We're going to put in a shower room upstairs.
0:22:33 > 0:22:37We are going to knock through the kitchen into the dining room.
0:22:37 > 0:22:38Fabulous.
0:22:38 > 0:22:41And, downstairs, I'm going to try and rejiggle the bathroom
0:22:41 > 0:22:43so that we can get a toilet downstairs.
0:22:43 > 0:22:45I think if we're going to attract a family,
0:22:45 > 0:22:49it's got to have at least two toilets and at least two places to shower.
0:22:49 > 0:22:52- I know you're a family man with three children.- Yeah.
0:22:52 > 0:22:55How are you going to cope? When are you going to get the time?
0:22:55 > 0:22:58Well, I will be spending every weekend working on the property,
0:22:58 > 0:23:02but I've got my cousin, Harry, who's coming over from Northern Ireland.
0:23:02 > 0:23:04He's got a year off university
0:23:04 > 0:23:06and he wants to get into property development,
0:23:06 > 0:23:10so he's going to come and give me a hand for a couple of months.
0:23:10 > 0:23:13Any chance you and your family might want to keep hold of it?
0:23:13 > 0:23:15The kids are going to love this. It's so near the beach.
0:23:15 > 0:23:18- No. No. I need the money.- No?
0:23:18 > 0:23:21I need the money.
0:23:21 > 0:23:24- They can come in, but they can get out.- It's an investment, yeah.
0:23:24 > 0:23:27- Very firmly.- Nathan, good luck. You've got a lot ahead of you.
0:23:27 > 0:23:29But I can't wait to see the outcome when it's all finished.
0:23:29 > 0:23:32- Well done. - Thank you very much.- Thank you.
0:23:32 > 0:23:34Nathan has already got the ball rolling
0:23:34 > 0:23:37by negotiating a deal with the freeholder
0:23:37 > 0:23:39to get that lease extension,
0:23:39 > 0:23:42but what about all that dingy downstairs damp?
0:23:42 > 0:23:44Let's hope it's not going to eat too much into his budget,
0:23:44 > 0:23:47because Nathan has got big plans for this place,
0:23:47 > 0:23:51and cousin Harry is going to need his wages paying.
0:23:51 > 0:23:53You can join me later on in the programme
0:23:53 > 0:23:55to find out exactly what happens.
0:23:57 > 0:24:02Coming up, in Crewe, we see what £61,000 could get you.
0:24:02 > 0:24:03Big front area there,
0:24:03 > 0:24:07then through to a really nice-sized rear living area.
0:24:08 > 0:24:10And back in Kent, we catch up with Nathan
0:24:10 > 0:24:13and his battle against the damp.
0:24:13 > 0:24:15It was worse than I'd hoped.
0:24:20 > 0:24:25It was in London NW6, in the area known as Swiss Cottage,
0:24:25 > 0:24:27where we first saw a one-bedroomed flat
0:24:27 > 0:24:31situated on the second floor of a rather elegant building.
0:24:31 > 0:24:34The flat itself was lacking in style and character.
0:24:36 > 0:24:41This was a prime location and, despite its small proportions,
0:24:41 > 0:24:44it was sold at auction for £360,000
0:24:44 > 0:24:48to former stockbroker turned property developer Arsalan
0:24:48 > 0:24:52as it met the criteria he was looking for in a property.
0:24:54 > 0:24:57- # Just follow - Three steps to heaven
0:24:57 > 0:25:00# Steps one, two and three... #
0:25:00 > 0:25:02I think there are three reasons it stood out.
0:25:02 > 0:25:04First of all, the location, so it's very convenient.
0:25:04 > 0:25:08Second thing is, visiting the flat, what I found is,
0:25:08 > 0:25:10the communal areas are quite presentable.
0:25:10 > 0:25:13And then the final thing was coming into the flat as well.
0:25:13 > 0:25:15Structurally, it seemed to be quite robust.
0:25:15 > 0:25:17It needs to be completely cleaned up and refurbished,
0:25:17 > 0:25:20but it didn't seem as if there was any big structural issues.
0:25:20 > 0:25:23- You're very structured in your thoughts, aren't you?- Yeah.
0:25:23 > 0:25:26- # Just follow - Three steps to heaven
0:25:26 > 0:25:28# Steps one, two and three... #
0:25:28 > 0:25:30Having bought the flat,
0:25:30 > 0:25:33his next steps were to refurbish it to a high standard
0:25:33 > 0:25:36on a budget of £20,000 to £25,000
0:25:36 > 0:25:40and a timescale of three to four weeks, and then sell it on.
0:25:42 > 0:25:43And now, five week later,
0:25:43 > 0:25:46we're back with Arsalan to check on progress.
0:25:51 > 0:25:54Well, that lounge is looking bigger and brighter.
0:25:57 > 0:26:00And the kitchen's less shabby, more swish.
0:26:03 > 0:26:06Bath or shower - that was the question.
0:26:07 > 0:26:08Wow.
0:26:08 > 0:26:10There may be no bath,
0:26:10 > 0:26:13but the showers have certainly taken the flat up a step or two.
0:26:16 > 0:26:19And the bedrooms are now looking crisp and clean,
0:26:19 > 0:26:21so it looks like it's gone to plan.
0:26:23 > 0:26:26In terms of the living room, the big change is,
0:26:26 > 0:26:29we took the door out here to allow the light to flow through,
0:26:29 > 0:26:32giving it more of that open-plan feel and the bigger sense of space.
0:26:32 > 0:26:35Moving into the kitchen, I think what we really tried to do
0:26:35 > 0:26:38is make sure it's a slightly higher standard in terms of the finish.
0:26:38 > 0:26:41The colour scheme is something I put some thought into,
0:26:41 > 0:26:44going for something beyond the sort of neutral type,
0:26:44 > 0:26:47and something that will appeal to certain types of buyers as well.
0:26:47 > 0:26:51And little touches, I think, like, if you look at the tap there,
0:26:51 > 0:26:53a very modern and, I think, slightly higher-end tap
0:26:53 > 0:26:56which, again, I think, adds that extra element of luxury to the flat.
0:26:56 > 0:26:59Yes, as they say, the devil's in the detail,
0:26:59 > 0:27:04but I'm wondering what the logic is in these changes in the bathroom.
0:27:04 > 0:27:06When I thought about it,
0:27:06 > 0:27:08I think the issue with the area and the type of flat
0:27:08 > 0:27:10is I think most of the people who are buying this
0:27:10 > 0:27:12aren't going to be families,
0:27:12 > 0:27:15but rather either an individual or a couple and, given the area,
0:27:15 > 0:27:19probably would lean towards having a shower rather than a bath tub.
0:27:19 > 0:27:21I think he's possibly right.
0:27:21 > 0:27:23With this being a one-bedroom flat on the second floor,
0:27:23 > 0:27:27his target market is undoubtedly young professionals,
0:27:27 > 0:27:30and the flat's whole look has been designed with that in mind.
0:27:32 > 0:27:34In terms of the designing and the colour scheme,
0:27:34 > 0:27:36that was really all from me.
0:27:36 > 0:27:37I didn't do any of the physical work,
0:27:37 > 0:27:39but I certainly designed everything,
0:27:39 > 0:27:43so I decided on the colours, decided on the types of fixtures
0:27:43 > 0:27:45and sourced all of those kind of external materials.
0:27:45 > 0:27:47I like to keep a lot of control there
0:27:47 > 0:27:50and, for me, that's part of the sort of fun and the job satisfaction.
0:27:50 > 0:27:53So, Arsalan has been showing some creative flair
0:27:53 > 0:27:56to go alongside his skills at getting the numbers to work.
0:27:59 > 0:28:01I think the key thing has been...
0:28:01 > 0:28:03My analytical approach has been on the budget side of things,
0:28:03 > 0:28:06so I had my spreadsheet set up with the different costs
0:28:06 > 0:28:07and I tried very rigorously to stick to it.
0:28:07 > 0:28:10Where there were elements where I wanted to spend a bit more,
0:28:10 > 0:28:12for example the worktops, some of the tiles,
0:28:12 > 0:28:14obviously I monitored that
0:28:14 > 0:28:16and saw where I could potentially make savings elsewhere.
0:28:16 > 0:28:18So, I was very kind of...
0:28:18 > 0:28:19very much, at the end of every day,
0:28:19 > 0:28:21sort of logging the costs and keeping an eye on things.
0:28:21 > 0:28:24I think that certainly helps to keep to budget.
0:28:24 > 0:28:27A-ha, yes, that budget. £20,000 to £25,000.
0:28:27 > 0:28:29How's that going?
0:28:29 > 0:28:34# You can count on me Cos I can count on you... #
0:28:34 > 0:28:37Altogether, it will be 23,000 I've spent.
0:28:37 > 0:28:39I think last time, I was aiming for 20,
0:28:39 > 0:28:43with a contingency of 5, so I think what pushed it up beyond my 20,
0:28:43 > 0:28:46the solid stone worktops in the kitchen
0:28:46 > 0:28:49and the additional tiling costs in the bathroom.
0:28:49 > 0:28:51But, otherwise, I think most things were more or less on budget.
0:28:53 > 0:28:58A £23,000 spend, on top of a £360,000 purchase price,
0:28:58 > 0:29:03takes his total costs to £383,000,
0:29:03 > 0:29:04without taxes and fees.
0:29:04 > 0:29:08So, does that all add up to a good deal?
0:29:08 > 0:29:10What did two local estate agents think?
0:29:12 > 0:29:15I've had a look around the flat today, and it looks really nice.
0:29:15 > 0:29:18The finish has been done to a very high standard.
0:29:18 > 0:29:20The flooring's good, the design is good,
0:29:20 > 0:29:22and the way the kitchen is put together
0:29:22 > 0:29:24and the bathroom has been put together with the tiling,
0:29:24 > 0:29:26really nicely done.
0:29:26 > 0:29:29I've looked around the flat, and I think it's lovely, I really do.
0:29:29 > 0:29:31The finishing's great.
0:29:31 > 0:29:35Not only that, the location where this is and the high ceilings,
0:29:35 > 0:29:38it's just... it's a fabulous property.
0:29:39 > 0:29:41Arsalan is looking to sell the flat on,
0:29:41 > 0:29:42but what kind of rental returns
0:29:42 > 0:29:45could a buy-to-let investor get from this flat?
0:29:48 > 0:29:50The rental value in the present market
0:29:50 > 0:29:52would be £1,600 per calendar month,
0:29:52 > 0:29:55possibly reaching to £1,700 per calendar month
0:29:55 > 0:29:57if it's furnished to a good standard.
0:29:57 > 0:30:02The property could rent for £1,650 per calendar month,
0:30:02 > 0:30:05maybe £1,700 per calendar month.
0:30:05 > 0:30:06The plan is to sell it.
0:30:06 > 0:30:09That said, the rental figures are higher than I...
0:30:09 > 0:30:11Because, obviously, I had two options.
0:30:11 > 0:30:13But I'm definitely hopefully looking to sell it,
0:30:13 > 0:30:16but it's always good to know that you've got the backup option.
0:30:16 > 0:30:18And £1,600 per calendar month
0:30:18 > 0:30:21would generate an annual yield of around 5%.
0:30:21 > 0:30:24Arsalan's looking for a bigger return
0:30:24 > 0:30:29by selling on this flat he's invested £383,000 into.
0:30:29 > 0:30:30The price that I'd put on this flat
0:30:30 > 0:30:35is in the region of £430,000 to £440,000.
0:30:35 > 0:30:37But with the market being so positive
0:30:37 > 0:30:41and potential of being a good marketplace as we stand,
0:30:41 > 0:30:43today, it could be up to £450,000.
0:30:43 > 0:30:48This flat could resell for £450,000.
0:30:48 > 0:30:53That's a potential pre-tax profit of between 47,000 and 67,000.
0:30:53 > 0:30:54So, what does he think of that?
0:30:56 > 0:30:58I think it's more or less in line with what I expected.
0:30:58 > 0:31:01I would probably push for the top end of the valuation.
0:31:01 > 0:31:03I think in this market and given the finish we've got,
0:31:03 > 0:31:06it's certainly worth pushing for that.
0:31:06 > 0:31:08Well, whether he gets the top valuation or not,
0:31:08 > 0:31:12it's still a great profit for just five weeks' work.
0:31:12 > 0:31:15So, financially, this has been a worthwhile project,
0:31:15 > 0:31:16but as another stepping stone
0:31:16 > 0:31:19on his burgeoning property development career,
0:31:19 > 0:31:21has it met Arsalan's criteria?
0:31:23 > 0:31:25Certainly, I think, obviously, hopefully,
0:31:25 > 0:31:28if things push through financially, it will work out.
0:31:28 > 0:31:30In terms of what I've learnt, which is, I think,
0:31:30 > 0:31:32the key thing when you're starting out in these things,
0:31:32 > 0:31:33that's almost as important.
0:31:33 > 0:31:37And the enjoyment factor's there, especially now it's coming together
0:31:37 > 0:31:38and I'm quite pleased with the result,
0:31:38 > 0:31:41so all in all, it's been a positive experience.
0:31:41 > 0:31:43Positive indeed as, since we visited,
0:31:43 > 0:31:47Arsalan has accepted an offer of 450,000.
0:31:51 > 0:31:55Crewe has been a hub for transportation for many years.
0:31:55 > 0:32:00A railway town, it's also home to the grand Crewe Hall,
0:32:00 > 0:32:05a stunning Jacobean mansion built between 1615 and 1636.
0:32:07 > 0:32:11Extensive restoration work was carried out in 1866
0:32:11 > 0:32:13after a devastating fire.
0:32:13 > 0:32:15Today, it stands strong and beautiful,
0:32:15 > 0:32:19and I wait patiently for it to appear at auction on the programme!
0:32:20 > 0:32:23Well, back to reality, and the kind of house
0:32:23 > 0:32:26that most of us stand a half-decent chance of actually living in,
0:32:26 > 0:32:28as opposed to a Jacobean mansion.
0:32:28 > 0:32:32And, the good news is, it is on the good end of the street.
0:32:32 > 0:32:34£50,000 was the guide price.
0:32:34 > 0:32:36Two-bed, mid-terrace. Let's take a look.
0:32:38 > 0:32:40So...
0:32:40 > 0:32:42pretty reasonable, don't you think?
0:32:42 > 0:32:46And when you walk through the door, yeah! This is looking great.
0:32:46 > 0:32:48Really high ceilings.
0:32:48 > 0:32:49It's been stripped out,
0:32:49 > 0:32:52which is going to save you a lot of effort,
0:32:52 > 0:32:55although it looks like things like pipework and electrics
0:32:55 > 0:32:57will need to be done.
0:32:57 > 0:32:59But big front area there,
0:32:59 > 0:33:02and then through to a really nice-sized rear living area.
0:33:02 > 0:33:03You've got the open fires.
0:33:03 > 0:33:06And the thing about these Crewe houses is, they...
0:33:06 > 0:33:09they were often built for slightly higher-end workers
0:33:09 > 0:33:11and, as a result, they are substantial.
0:33:11 > 0:33:13And look at this one.
0:33:13 > 0:33:16It's really nice. Now, the kitchen is in that little bit there.
0:33:16 > 0:33:18Well, I say kitchen.
0:33:18 > 0:33:19HE CLEARS HIS THROAT
0:33:19 > 0:33:23It's more like a large brick pizza oven at the moment!
0:33:23 > 0:33:26You know, one of those things you have in, like, pizza restaurants.
0:33:26 > 0:33:28Nothing in there. Er... So...
0:33:28 > 0:33:31But, anyway, the thing is, somebody's gone to all the trouble
0:33:31 > 0:33:33of getting rid of all the rubbish,
0:33:33 > 0:33:36so it's actually a blank canvas... for YOU to paint on.
0:33:39 > 0:33:42A blank canvas indeed, and with this sense of space,
0:33:42 > 0:33:47there really is an opportunity to create your own little castello.
0:33:47 > 0:33:50The kitchen area, clearly a later addition to the property,
0:33:50 > 0:33:53is a bit on the small side, but with everything pulled out,
0:33:53 > 0:33:56it does leave you with the option of moving things about.
0:33:57 > 0:33:59As you walk round the house,
0:33:59 > 0:34:02you just get this feeling of it just being so nicely proportioned.
0:34:02 > 0:34:05I mean, it is only a two-bed,
0:34:05 > 0:34:08and it almost feels like it could be so much more.
0:34:08 > 0:34:11So, up here, large bathroom down that way.
0:34:11 > 0:34:13Then your two bedrooms here. But look at this.
0:34:13 > 0:34:16Stairs up to some kind of attic space.
0:34:16 > 0:34:18Now, judging by these, I mean...
0:34:18 > 0:34:22They are not building regulations-compliant, I'd guess.
0:34:22 > 0:34:25You'd expect to see something like this on a boat, wouldn't you?!
0:34:25 > 0:34:29So, therefore, I reckon you couldn't class that as a bedroom.
0:34:29 > 0:34:31Well, it obviously hasn't been classed as a bedroom.
0:34:31 > 0:34:35But it might be a useful storage space or maybe a little play area.
0:34:35 > 0:34:36But let's explore
0:34:36 > 0:34:38that aforementioned bathroom a bit more...
0:34:38 > 0:34:41down this corridor, and what is interesting is this.
0:34:41 > 0:34:45Stud partition wall, basically creating that bedroom there.
0:34:45 > 0:34:48Unusual. I wonder what the original layout was.
0:34:48 > 0:34:52My guess is that the bathroom was actually downstairs
0:34:52 > 0:34:54and that little corridor has been created
0:34:54 > 0:34:57to enable you to get to this area here,
0:34:57 > 0:35:00which is where the bathroom could quite conceivably be.
0:35:00 > 0:35:02Again, not a bad space.
0:35:02 > 0:35:04Somebody's cleared it out for you, and at least...
0:35:04 > 0:35:07oh, at least you won't have to spend too much money on light fittings,
0:35:07 > 0:35:09because that one is perfect.
0:35:09 > 0:35:12- HE COUGHS - Just needs a bit of a dust.
0:35:12 > 0:35:17# ..From these dusty skies... #
0:35:17 > 0:35:20A house stripped bare, sure,
0:35:20 > 0:35:23but waiting patiently to come back to life.
0:35:23 > 0:35:25It's practically begging to be restored.
0:35:25 > 0:35:29I think anywhere around the guide price of £50,000 is a bargain,
0:35:29 > 0:35:31and that's even before we head outside.
0:35:33 > 0:35:37Well, out the back, this little yard area,
0:35:37 > 0:35:39and then a bit of a bonus.
0:35:39 > 0:35:41Across this bit of land...
0:35:41 > 0:35:43Now, one thing, before I move on away from this land.
0:35:43 > 0:35:46You definitely want to find out from your solicitor who owns this
0:35:46 > 0:35:48and who's responsible for its maintenance.
0:35:48 > 0:35:50But across it, whoever does own it
0:35:50 > 0:35:52and is responsible for its maintenance, is this, the garage.
0:35:52 > 0:35:54You've got a garage, you've got this bit...
0:35:54 > 0:35:56You know, it's just all adds
0:35:56 > 0:35:59to what I think is already a really great little house.
0:36:01 > 0:36:03Not just a great house.
0:36:03 > 0:36:07A fantastic house, because beyond the shed is even more land.
0:36:07 > 0:36:09A garden awaiting some green fingers.
0:36:12 > 0:36:16£50,000-plus makes it a no-brainer for me,
0:36:16 > 0:36:17but we asked a local property expert
0:36:17 > 0:36:20to come along and give us his opinion.
0:36:20 > 0:36:23Does he believe the layout of the house causes any issues?
0:36:24 > 0:36:28I'd leave the layout as it is. It works pretty well.
0:36:28 > 0:36:30So, new kitchen, new bathroom,
0:36:30 > 0:36:32rewire, central heating system,
0:36:32 > 0:36:35lots of reskimming and replastering ceilings
0:36:35 > 0:36:38and you should be there with it then.
0:36:39 > 0:36:43Sounds simple enough, although experience tells us
0:36:43 > 0:36:45that this is never quite the case.
0:36:45 > 0:36:49A lot to do. How much does he think it would cost?
0:36:49 > 0:36:53I'd imagine the property would need in the region of 15,000 to 20,000.
0:36:53 > 0:36:56It does depend on how much work the...
0:36:56 > 0:36:59the new owner could do to the property themselves.
0:36:59 > 0:37:03£20,000 seems realistic to me, but if sold for the guide price,
0:37:03 > 0:37:07the total spend would reach, then, around 70,000.
0:37:07 > 0:37:09In that case, once complete,
0:37:09 > 0:37:12what kind of profit margin would we be looking at?
0:37:13 > 0:37:17The property would be in the region of £85,000 to £90,000,
0:37:17 > 0:37:18and the rental value
0:37:18 > 0:37:23would be in the region of £495 to £550 per calendar month.
0:37:24 > 0:37:29So, a potential £20,000 profit, or a 9% yield from renting.
0:37:29 > 0:37:33Out of the two, which one would he recommend?
0:37:33 > 0:37:36I think either way with this property.
0:37:36 > 0:37:40It would rent very, very well. It's a really strong market for rental.
0:37:40 > 0:37:43But in the other breath, it's also a really good market for sales,
0:37:43 > 0:37:47and there is quite a decent profit margin in this property.
0:37:47 > 0:37:51Well, in case you haven't guessed, I really, really like this property.
0:37:51 > 0:37:54It feels good inside, you've got space outside,
0:37:54 > 0:37:57and that guide price, well, what is there not to love?
0:37:57 > 0:38:00Let's see who agreed when it went under the hammer.
0:38:02 > 0:38:04What's this? 50 to start me?
0:38:05 > 0:38:0745, then.
0:38:07 > 0:38:1145 bid. Thank you. At £45,000.
0:38:11 > 0:38:1350, can you say now?
0:38:13 > 0:38:17£50,000. 55? I'll take 1 if it helps.
0:38:17 > 0:38:19This lot surprisingly struggled to get going
0:38:19 > 0:38:23and then, suddenly, things heated up at 55,000.
0:38:23 > 0:38:27The bid's at £55,000, then. Are we all done? You coming on the phone?
0:38:27 > 0:38:2956.
0:38:29 > 0:38:31New bidder, 57.
0:38:31 > 0:38:3258? 58.
0:38:32 > 0:38:3559? 59.
0:38:35 > 0:38:3760 on the phone. Against you in the room.
0:38:37 > 0:38:3961 anywhere else?
0:38:39 > 0:38:41New bidder, 61.
0:38:42 > 0:38:45You're out. 61. The bid's in the room, at the back, at £61,000.
0:38:45 > 0:38:4862 anywhere else?
0:38:48 > 0:38:51If not, £61,000, for the first time.
0:38:52 > 0:38:54£61,000, for the second time.
0:38:55 > 0:38:5761, third and final time.
0:38:57 > 0:38:59Your lot, sir, well done.
0:39:01 > 0:39:07So, bought for £61,000, £11,000 over the guide price,
0:39:07 > 0:39:10by Steve and Darren, in the blue top,
0:39:10 > 0:39:14who have recently got together in a new business venture.
0:39:14 > 0:39:18Steve came along to the house to tell me more.
0:39:18 > 0:39:21- Steve, good to meet you.- Good to meet you.- Congratulations.- Thank you.
0:39:21 > 0:39:24Tell me why you wanted to buy this place.
0:39:24 > 0:39:27It's a good size and I think it's got good potential,
0:39:27 > 0:39:30especially if we can squeeze a third bedroom in, like we're hoping for.
0:39:30 > 0:39:34- Good stuff. I mean, I think you got it at a good price, didn't you?- 61.
0:39:34 > 0:39:36Yeah, were you surprised it didn't go higher?
0:39:36 > 0:39:38I think, because somebody's already made a start,
0:39:38 > 0:39:41it looked quite bad, so I think that put a lot of people off.
0:39:41 > 0:39:44That's interesting, isn't it, because I think it's a bonus.
0:39:44 > 0:39:47Yeah. It is for me, anyway. The dirty parts are done.
0:39:47 > 0:39:49Tell me a bit about you. What do you do?
0:39:49 > 0:39:51- I've got a small plastering firm...- Oh!
0:39:51 > 0:39:54..and do this kind of work for other people,
0:39:54 > 0:39:57- so I thought it's about time I had a go for myself.- Right.
0:39:57 > 0:40:00- So, is this your first sort of investment property?- Yes, yeah.
0:40:00 > 0:40:02Wow, and there you are being a plasterer,
0:40:02 > 0:40:05that skill that everybody needs, really.
0:40:05 > 0:40:06A lot of people say that.
0:40:06 > 0:40:09A lot of people do say that, because it's true.
0:40:09 > 0:40:13It's a dark art, plastering a ceiling. I wish I could do it.
0:40:13 > 0:40:15However, Steve isn't doing this alone.
0:40:15 > 0:40:17He does have his business partner, Darren.
0:40:19 > 0:40:23- Does he have sort of suitable or relevant skills?- Yes.
0:40:23 > 0:40:26- He runs a decorating firm.- Oh!- Quite a large decorating firm.- Oh, right.
0:40:26 > 0:40:29- That's all right, then.- Yes!- You can plaster it, he can paint it.
0:40:29 > 0:40:32- That's the idea.- Job done. - Yeah, yeah.
0:40:32 > 0:40:35So, what's the plans for the house, then?
0:40:35 > 0:40:39Well, this area where we are now, there'll be a kitchen in here.
0:40:39 > 0:40:44- Worktop base units across the back wall. Island in the middle.- Oh, wow.
0:40:44 > 0:40:46What used to be the kitchen at the back
0:40:46 > 0:40:49will become a utility and downstairs toilet.
0:40:49 > 0:40:51And then, upstairs,
0:40:51 > 0:40:55what was the bathroom at the back will become the third bedroom.
0:40:55 > 0:40:57Explain to me a bit more about the layout upstairs.
0:40:57 > 0:40:59I'm trying to get my head round how you're going to do it.
0:40:59 > 0:41:02You're going to start by taking out all the stud partitions?
0:41:02 > 0:41:04I'll take the stairs out to start off with,
0:41:04 > 0:41:08and then I want to take the brick wall out to the left of the stairs,
0:41:08 > 0:41:10put a stud wall up a bit further over,
0:41:10 > 0:41:12which will then make the bathroom
0:41:12 > 0:41:15between that wall and the right-hand side of the stairs.
0:41:15 > 0:41:18Enough to get a bath in there, or will it be a shower room?
0:41:18 > 0:41:19- No, it will be bath.- Right.
0:41:19 > 0:41:22And then the two bedrooms, one will remain pretty much as it is.
0:41:22 > 0:41:25The existing...what was the bathroom will be a bedroom,
0:41:25 > 0:41:28- and then a slightly smaller third bedroom.- Yeah.
0:41:28 > 0:41:29Sounds like a good plan.
0:41:29 > 0:41:32One of these ones you're not quite sure how it's going to work out
0:41:32 > 0:41:34- until you actually do it. - That's it, yeah!
0:41:36 > 0:41:38Still, I think the plan is a good one,
0:41:38 > 0:41:42especially with that third bedroom adding value to the property.
0:41:42 > 0:41:45Even with Steve saving money on the plastering,
0:41:45 > 0:41:49the initial budget for the boys is between 10,000 and 12,000 -
0:41:49 > 0:41:51no small change.
0:41:51 > 0:41:53What sort of timescale are they looking at?
0:41:53 > 0:41:56- We're hoping to be done in five weeks.- Five weeks?!- Five weeks.
0:41:56 > 0:41:58How many people?
0:41:58 > 0:42:01- In total, there'll probably be about six, on and off.- Ah, OK.
0:42:02 > 0:42:06Well, Steve is injecting some serious pace into the project,
0:42:06 > 0:42:09a tactic that has, indeed, floored many in the past,
0:42:09 > 0:42:12but Steve seems confident and determined.
0:42:12 > 0:42:15If successful, what plans do they have for the house?
0:42:15 > 0:42:19- Quick sell or the rental market? - It depends.
0:42:19 > 0:42:22We'll advertise it for both and just pick up whichever comes first.
0:42:22 > 0:42:25- Literally whichever comes first? - Yeah.- That right?- Yeah.
0:42:25 > 0:42:28So, have you got a clear idea of how much you'll rent it out for?
0:42:28 > 0:42:32- I was hoping for about 430 per calendar month.- Right.
0:42:32 > 0:42:34- And how much would you sell it for?- Er...
0:42:34 > 0:42:37- I'd like 85 to 90.- Right.
0:42:37 > 0:42:42- So, a good profit, if you can manage to keep your costs down.- Yeah.
0:42:43 > 0:42:45Steve will be happy to know
0:42:45 > 0:42:48that our property expert gave a similar valuation.
0:42:48 > 0:42:51However, that was for a two-bedroomed house.
0:42:51 > 0:42:54If Steve and Darren managed to squeeze a third bedroom in,
0:42:54 > 0:42:57the potential return could be higher still.
0:42:57 > 0:42:58Let's hope they can do it.
0:43:00 > 0:43:03And the biggest challenge, you think?
0:43:03 > 0:43:06- Squeezing that bathroom in.- Right.
0:43:06 > 0:43:09- Lots of jiggery-pokery, the stud partition walls and things.- Yes.
0:43:09 > 0:43:11- Without making rooms too small.- Mm.
0:43:11 > 0:43:13And the stairs up to the attic, I mean,
0:43:13 > 0:43:17- they're not very safe anyway, are they?- No, not the best, are they?
0:43:17 > 0:43:20No! And then what next for you?
0:43:20 > 0:43:23Be looking out for another one, as soon as this is towards completion.
0:43:23 > 0:43:26- And then just keep on running on. - Hopefully. That's the plan.
0:43:26 > 0:43:28- Well, listen, congratulations. Good luck with it.- Thank you.
0:43:28 > 0:43:31- Look forward to seeing how you get on.- Great.
0:43:32 > 0:43:36So, moving the staircase... in fact, removing the staircase.
0:43:36 > 0:43:37What do you think about that?
0:43:37 > 0:43:40I think that's a great idea that Steve's come up with
0:43:40 > 0:43:41to create that extra bedroom
0:43:41 > 0:43:45without reducing the size of the existing bedrooms too much.
0:43:45 > 0:43:49Radical changes up here, then, when we return...big question mark.
0:43:49 > 0:43:52You can find out later in the show.
0:43:55 > 0:43:58Well, time and tide wait for no-one,
0:43:58 > 0:44:00so have our buyers lived up to their promises?
0:44:00 > 0:44:04Has all the work been done? I think we should go back and find out.
0:44:08 > 0:44:12Back now to the fantastic Kent coastline
0:44:12 > 0:44:14and lovely Westgate-on-Sea
0:44:14 > 0:44:16where, earlier, we met Nathan,
0:44:16 > 0:44:19who was tackling this maisonette as his first project.
0:44:22 > 0:44:26He bought it at auction for £82,000.
0:44:26 > 0:44:28- Nathan, congratulations. - Thank you very much.
0:44:28 > 0:44:30So, here you are with your auction property,
0:44:30 > 0:44:33a stone's throw from one of my favourite beaches.
0:44:33 > 0:44:36- It's nice, isn't it? Nice spot.- I love Westgate-on-Sea.
0:44:36 > 0:44:38Yeah, it's nice. Up and coming.
0:44:40 > 0:44:43But this seaside dwelling was less than shipshape,
0:44:43 > 0:44:45with damp issues in the downstairs bedrooms
0:44:45 > 0:44:48and, well, that wasn't the only problem.
0:44:50 > 0:44:54- So, the big, bad "no" with this property is the lease.- It is.
0:44:54 > 0:44:58It was in the legal pack. Did you read about it in the legal pack?
0:44:58 > 0:45:01I did. Yeah, so it's got 64 years.
0:45:01 > 0:45:03I did a little bit of research beforehand.
0:45:03 > 0:45:07I spoke to the next-door neighbour, and his lease is 67,
0:45:07 > 0:45:11and he'd had a quote from the freeholder of £6,000 to get extended.
0:45:11 > 0:45:12Right.
0:45:12 > 0:45:14So, it'll be a little bit more for me,
0:45:14 > 0:45:17because it's a little bit of a shorter lease,
0:45:17 > 0:45:18but I've allowed for that.
0:45:18 > 0:45:22Nathan had also planned on fixing the damp
0:45:22 > 0:45:24and modernising the flat throughout,
0:45:24 > 0:45:28and had given himself a timescale of 12 weeks.
0:45:28 > 0:45:30Well, five months have now passed
0:45:30 > 0:45:33and we are back to see how he's got on.
0:45:40 > 0:45:45There's no sign of that damp or the '60s decor.
0:45:48 > 0:45:51And even the wall between the kitchen and dining room
0:45:51 > 0:45:52seemed to have vanished.
0:45:52 > 0:45:55But what about the issue with the lease?
0:45:55 > 0:45:57I was very confident from the start
0:45:57 > 0:45:59that we would be able to sort the lease.
0:45:59 > 0:46:01I spoke with the property management company
0:46:01 > 0:46:05and they assured me that they would be able to sort it out very quickly,
0:46:05 > 0:46:07and then it went to solicitors,
0:46:07 > 0:46:09and things have just been dragging on from there,
0:46:09 > 0:46:12so we just need to lean on the solicitors,
0:46:12 > 0:46:17get things moving a bit quicker, and then we'll be there.
0:46:17 > 0:46:21# Oh, please release me
0:46:21 > 0:46:24# Let me go... #
0:46:24 > 0:46:27Nathan really needs to get the lease on this property sorted.
0:46:27 > 0:46:29As it stands, with only 64 years left on it,
0:46:29 > 0:46:33potential buyers will really struggle to get a mortgage.
0:46:35 > 0:46:38How did he get on with this damp problem?
0:46:38 > 0:46:41It was worse than I'd hoped,
0:46:41 > 0:46:45in that a couple of the obvious causes of damp,
0:46:45 > 0:46:49a leaking downpipe is one example,
0:46:49 > 0:46:51was not the only cause of the damp.
0:46:51 > 0:46:55But we managed to find a lot of the sources.
0:46:55 > 0:47:00There was a leaking hot water tank, a leaking waste pipe in the...
0:47:00 > 0:47:04in the kitchen, and once we'd sorted those out, things started to dry out.
0:47:05 > 0:47:09So, it certainly hasn't been plain sailing for Nathan,
0:47:09 > 0:47:14but he has transformed this property by moving and removing walls.
0:47:14 > 0:47:18The major change which I thought would add to the property
0:47:18 > 0:47:20was the kitchen.
0:47:20 > 0:47:24The kitchen was a very small room, like a little galley kitchen,
0:47:24 > 0:47:28and I thought if I could open up the space,
0:47:28 > 0:47:30you would get two windows in there,
0:47:30 > 0:47:32it would be a very light, south-facing room,
0:47:32 > 0:47:35and I think that'll be a real saleable point to the property,
0:47:35 > 0:47:39and I think once you put a nice modern kitchen in there, I think...
0:47:39 > 0:47:43They always say it's the kitchen and the bathroom that sell a property,
0:47:43 > 0:47:45so I thought once I'd got the kitchen right,
0:47:45 > 0:47:48then everything else should follow quite nicely.
0:47:49 > 0:47:51Kitchens and bathrooms, indeed,
0:47:51 > 0:47:53and speaking of bathrooms,
0:47:53 > 0:47:56by reconfiguring the kitchen and dining room,
0:47:56 > 0:48:00Nathan has managed to squeeze in this lovely shower room upstairs
0:48:00 > 0:48:02and still keep the separate toilet.
0:48:04 > 0:48:07And, downstairs, he took some of the under-stairs storage,
0:48:07 > 0:48:10which enabled him to add a loo into the bathroom.
0:48:13 > 0:48:17So, how has all this work affected his budget?
0:48:17 > 0:48:21I originally budgeted £20,000 to complete the renovation.
0:48:21 > 0:48:26I've spent 22,000, which sounds like I was fairly close,
0:48:26 > 0:48:30so overall, I'm very pleased at where I've come in on budget,
0:48:30 > 0:48:32and it's been a huge learning experience,
0:48:32 > 0:48:35and I'll be a lot more accurate next time.
0:48:35 > 0:48:38Ooh, so Nathan's thinking about another property already.
0:48:38 > 0:48:41But how did he do with his timescale?
0:48:41 > 0:48:43I originally planned that the job would take three months.
0:48:43 > 0:48:45It took me five months,
0:48:45 > 0:48:49and that was predominantly down to sorting out the damp downstairs.
0:48:49 > 0:48:53You have to allow a lot of time for the damp to dry out,
0:48:53 > 0:48:57to make sure that everything's ready to move onto the next stage.
0:49:00 > 0:49:03Going over schedule has been tough on Nathan and his family.
0:49:03 > 0:49:05In fact, he ended up getting decorators in
0:49:05 > 0:49:07to help him finish sooner than he might have.
0:49:07 > 0:49:10He bought this property for 82,000
0:49:10 > 0:49:13and has spent £22,000 on the renovations.
0:49:16 > 0:49:20We invited along two property experts to see what they think.
0:49:20 > 0:49:21It's very spacious.
0:49:21 > 0:49:23Having two receptions, two bathrooms,
0:49:23 > 0:49:25gives it a really big advantage
0:49:25 > 0:49:28in comparison to what else is on the market at the moment.
0:49:28 > 0:49:30Yeah, the finish is good, it's neutral,
0:49:30 > 0:49:34so people can come in and put their own mark on it as and when they want.
0:49:34 > 0:49:38It's clean, it's bright and it's airy. It's ready to go.
0:49:38 > 0:49:39Well, that's all very positive,
0:49:39 > 0:49:41but what do they think Nathan could achieve
0:49:41 > 0:49:44if he was to put this flat on the rental market?
0:49:44 > 0:49:47I would expect this to achieve
0:49:47 > 0:49:50in the region of £675 per calendar month.
0:49:50 > 0:49:52And I'd estimate this would be anything
0:49:52 > 0:49:55from 550 to 575 per calendar month.
0:49:55 > 0:49:59Even that lowest estimate would give Nathan a yield of over 6%.
0:49:59 > 0:50:03I think 550 is a very strong... strong return
0:50:03 > 0:50:05and I would give that some serious thought.
0:50:05 > 0:50:10So, will Nathan change his mind about selling this maisonette?
0:50:10 > 0:50:13He had a total spend of 104,000.
0:50:13 > 0:50:17What do our experts think it could achieve if it went up for sale?
0:50:18 > 0:50:23I'd expect this property to sell for in the region of £145,000.
0:50:23 > 0:50:27I'd be looking to put this property on the market at £135,000.
0:50:27 > 0:50:32That would give Nathan a profit of between 31,000 and 41,000
0:50:32 > 0:50:34before taxes and fees.
0:50:34 > 0:50:37I think at the start of the project, I'd always hoped that I'd get 130,
0:50:37 > 0:50:43so I think 140 to 145, I've got to be pleased with that.
0:50:43 > 0:50:47I have already had an offer on the property at 150,
0:50:47 > 0:50:50so I think I'll probably be selling.
0:50:51 > 0:50:54So, despite problems with the damp and the lease,
0:50:54 > 0:50:58Nathan has made a success of his first auction purchase.
0:50:58 > 0:51:01Will he be doing it again?
0:51:01 > 0:51:05I think I'll be allowed to start my next project
0:51:05 > 0:51:07probably in about six months' time,
0:51:07 > 0:51:10when I've reintroduced myself to the family.
0:51:17 > 0:51:18Back now to Crewe
0:51:18 > 0:51:21where, earlier, we met plasterer Steve.
0:51:21 > 0:51:24Steve and his business partner Darren
0:51:24 > 0:51:27bought this house at auction for £61,000.
0:51:28 > 0:51:31- I think you got it at a good price, didn't you?- 61.
0:51:31 > 0:51:33Yeah, were you surprised it didn't go higher?
0:51:33 > 0:51:36I think, because somebody's already made a start,
0:51:36 > 0:51:38it looked quite bad, so I think that put a lot of people off.
0:51:38 > 0:51:41That's interesting, isn't it, because I think it's a bonus.
0:51:41 > 0:51:44Yeah. It is for me, anyway. The dirty parts are done.
0:51:45 > 0:51:49However, Steve had plans to change the upstairs layout
0:51:49 > 0:51:52in order to add a third bedroom.
0:51:52 > 0:51:53Sounds like a good plan.
0:51:53 > 0:51:56One of these ones you're not quite sure how it's going to work out
0:51:56 > 0:51:57- until you do it.- That's it, yeah.
0:51:59 > 0:52:03I love it when a plan comes together! So, has this one?
0:52:03 > 0:52:06Seven weeks later, we're back to see how Steve got on.
0:52:09 > 0:52:12And, as Steve promised, things certainly have moved.
0:52:12 > 0:52:14# You gotta move
0:52:14 > 0:52:16# Gotta move
0:52:17 > 0:52:18# Gotta move
0:52:19 > 0:52:21# Gotta move... #
0:52:21 > 0:52:24Downstairs, it's the kitchen that's moved.
0:52:24 > 0:52:26Upstairs, it's just about every wall.
0:52:29 > 0:52:33By removing the stairs to the attic room and moving the bedroom wall,
0:52:33 > 0:52:36Steve has been able to put the bathroom here.
0:52:38 > 0:52:42This has left the old bathroom space at the back of the house free
0:52:42 > 0:52:44to become the third bedroom.
0:52:44 > 0:52:47But that has meant losing the use of the attic room.
0:52:47 > 0:52:51Originally, we wanted to keep the loft as a room,
0:52:51 > 0:52:53but when we got up there
0:52:53 > 0:52:55and started taking floorboards up and having a look at it,
0:52:55 > 0:52:57it wasn't done very good,
0:52:57 > 0:53:01so we were best to just shut it off and use it as storage.
0:53:01 > 0:53:04It's obvious a lot of effort has gone into this property.
0:53:05 > 0:53:06As Steve is a plasterer
0:53:06 > 0:53:09and his business partner runs a decorating firm,
0:53:09 > 0:53:13they had planned to do most of the work themselves.
0:53:13 > 0:53:16I started work here by myself at first,
0:53:16 > 0:53:19getting everything ready, taking the walls down,
0:53:19 > 0:53:23taking the stairs out, started putting some partition walls up,
0:53:23 > 0:53:25running some cables then for the electrician,
0:53:25 > 0:53:27the pipework for the plumbing,
0:53:27 > 0:53:32and then the lad that works with me started on the plastering.
0:53:32 > 0:53:34I assisted him with it.
0:53:34 > 0:53:37Then when that was done, I went on to doing the woodwork,
0:53:37 > 0:53:41hanging the doors, fitting skirting boards, architraves.
0:53:41 > 0:53:44My business partner came over then to help me finish that off,
0:53:44 > 0:53:46and we fitted the kitchen between us.
0:53:46 > 0:53:50Then his lads did the decoration at the end of it.
0:53:50 > 0:53:53Wow! So, is there anything they couldn't do themselves?
0:53:53 > 0:53:57We've had an electrician in to fit a new consumer unit,
0:53:57 > 0:54:03socket fronts, put some extra sockets in, new light fittings, fixtures.
0:54:03 > 0:54:06And another great addition to this house
0:54:06 > 0:54:09is the utility room and the downstairs toilet.
0:54:09 > 0:54:11Originally, that was the kitchen,
0:54:11 > 0:54:15which me and my partner both thought it was too small for a kitchen.
0:54:15 > 0:54:19So, we put a partition wall up to divide the room in half,
0:54:19 > 0:54:21one side utility
0:54:21 > 0:54:24and the other side, we fitted toilet, sink and the boiler.
0:54:24 > 0:54:28And it wasn't just the inside of the property that got a make over.
0:54:28 > 0:54:33Out the back, we moved the shed, the kennels, got rid of all the rubbish,
0:54:33 > 0:54:38taken the fence down, removing the posts to create off-road parking.
0:54:38 > 0:54:40Off-road parking?
0:54:40 > 0:54:41Yet another great addition,
0:54:41 > 0:54:44and there's also the garage and garden out back.
0:54:44 > 0:54:48But have they managed to do all this within their timescale?
0:54:49 > 0:54:52We were hoping for five weeks, and it was a bit ambitious,
0:54:52 > 0:54:56but that's what we were hoping for, and we did it in seven.
0:54:56 > 0:55:00I think the seven-week timescale is amazing, given the work here.
0:55:00 > 0:55:03How did the £10,000 to £12,000 budget go?
0:55:03 > 0:55:08It was 12, the original budget was, which, again, a bit ambitious,
0:55:08 > 0:55:10and it's come out at 13,500.
0:55:10 > 0:55:15So, two weeks over their schedule and £1,500 over their budget.
0:55:15 > 0:55:17What pushed them over?
0:55:17 > 0:55:19I'd say the biggest expense has been the kitchen,
0:55:19 > 0:55:23and the reason is because, such a big room, we wanted to fill it,
0:55:23 > 0:55:26so we wanted to go for an island,
0:55:26 > 0:55:30which meant we had to go for solid worktops, oversized,
0:55:30 > 0:55:34so everything worked round the island, really, in the kitchen.
0:55:34 > 0:55:39That's probably a sensible move, as kitchens do sell houses.
0:55:39 > 0:55:42So, what are their plans for the property now?
0:55:42 > 0:55:48Hopefully we can sell it, but if not then we will rent it.
0:55:50 > 0:55:52Always good to keep your options open.
0:55:52 > 0:55:56Steve and Darren bought this house for £61,000
0:55:56 > 0:55:59and spent £13,500 on renovations.
0:55:59 > 0:56:01We invited round two estate agents
0:56:01 > 0:56:04to see what they think of the property now,
0:56:04 > 0:56:06starting with the agent who saw it last time.
0:56:09 > 0:56:11I think he has made good use of the space.
0:56:11 > 0:56:14The attic didn't have any planning permission,
0:56:14 > 0:56:16so something needed to be done,
0:56:16 > 0:56:18and a bathroom has been put in place
0:56:18 > 0:56:21where the staircase used to be for the loft room,
0:56:21 > 0:56:23which I think is a good idea.
0:56:23 > 0:56:25I think it's very, very nice indeed.
0:56:25 > 0:56:28The owners have done a really good job
0:56:28 > 0:56:32and it's very spacious, very light and airy, and very fashionable.
0:56:32 > 0:56:34That all sounds positive,
0:56:34 > 0:56:37so what do they think the property could achieve on the rental market?
0:56:39 > 0:56:41Rental-wise, I think you would achieve
0:56:41 > 0:56:46between £525 per calendar month to £550 per calendar month,
0:56:46 > 0:56:49on the basis that there are three bedrooms
0:56:49 > 0:56:52and it's a nice, spacious living accommodation.
0:56:52 > 0:56:56Well, the owner would be looking at around 550 per calendar month.
0:56:56 > 0:56:58That lowest figure would give Steve and Darren
0:56:58 > 0:57:02a rather healthy return of over 8%.
0:57:02 > 0:57:05That's what we were expecting, yeah. Yeah, that's good.
0:57:07 > 0:57:10With an overall spend of 74,500,
0:57:10 > 0:57:13what could this property achieve if it was put up for sale?
0:57:13 > 0:57:16I think the owner would be looking to put this property on the market
0:57:16 > 0:57:20for around £95,000 to 99,950.
0:57:21 > 0:57:25If you ask £100,000, you should get an offer very near to that,
0:57:25 > 0:57:28because all the work's been done to the property.
0:57:28 > 0:57:30The expensive jobs, like the kitchen and bathroom,
0:57:30 > 0:57:32have been done to a high standard.
0:57:32 > 0:57:33People generally offer lower
0:57:33 > 0:57:35if the property needs work doing to it still.
0:57:36 > 0:57:39That lowest estimate of £95,000
0:57:39 > 0:57:44would give Steve and Darren a potential profit of £20,500
0:57:44 > 0:57:46before the usual taxes and fees,
0:57:46 > 0:57:48so how does Steve feel
0:57:48 > 0:57:51about his first venture into the property business?
0:57:51 > 0:57:55I've enjoyed doing it and I'd definitely do it again, yeah.
0:57:55 > 0:57:57I spoke to that many people, though,
0:57:57 > 0:58:00that haven't done it and have regretted it,
0:58:00 > 0:58:02so I thought, you know, I don't want to be one of those people.
0:58:02 > 0:58:04Just give it a try.
0:58:07 > 0:58:11Well, we hope you've enjoyed the tales of triumph and tribulation
0:58:11 > 0:58:13on today's programme.
0:58:13 > 0:58:15And we look forward to seeing you next time
0:58:15 > 0:58:16for more Homes Under The Hammer.
0:58:16 > 0:58:18- We'll see you, then.- Bye.- Bye.