0:00:02 > 0:00:04- Hello and welcome to the show. - Buying property can have its highs
0:00:04 > 0:00:07and its lows, especially if you get caught in a dreaded property chain.
0:00:07 > 0:00:10But you can eliminate the chain altogether
0:00:10 > 0:00:12by buying your next home under the hammer.
0:00:37 > 0:00:40Well, there are all sorts of properties
0:00:40 > 0:00:42being sold at the auctions these days.
0:00:42 > 0:00:46And buyers have a huge variety of plans and budgets available.
0:00:46 > 0:00:49So, what's got our buyers inspired on today's programme?
0:00:49 > 0:00:54'In Bentilee, Stoke, it's the savings that get me going.'
0:00:54 > 0:00:57I can't believe it went for what it did, actually.
0:00:57 > 0:01:00Neither could I and that's why I bought it.
0:01:00 > 0:01:05'But in Surrey, it's the possible profits that leave me stunned.'
0:01:05 > 0:01:06If you want to make some cash,
0:01:06 > 0:01:09you need to pummel this property to the ground.
0:01:10 > 0:01:14'While in Wales, have you ever heard of a rock'n'roll kitchen?
0:01:14 > 0:01:16'You have now.'
0:01:16 > 0:01:18It's a Billy Idol kitchen.
0:01:18 > 0:01:20Nice day for a white wedding.
0:01:20 > 0:01:23All these properties have been sold at auction,
0:01:23 > 0:01:26we'll find out who bought them and what they paid for them
0:01:26 > 0:01:28when they went under the hammer.
0:01:28 > 0:01:30All done, sir, it's yours.
0:01:34 > 0:01:37I'm in Bentilee, Stoke-on-Trent.
0:01:37 > 0:01:38When it was built in the 1950s,
0:01:38 > 0:01:41it was one of the largest estates in Europe.
0:01:41 > 0:01:44The estate is now a mix of rented and private homes
0:01:44 > 0:01:46and over the last decade or so,
0:01:46 > 0:01:50there have been various initiatives to improve rented stock
0:01:50 > 0:01:53and build new homes, including retirement homes,
0:01:53 > 0:01:57as well as redeveloping facilities like the country park.
0:01:59 > 0:02:01Well, with all those positive community initiatives
0:02:01 > 0:02:05in recent times, you can understand why the residential suburb
0:02:05 > 0:02:08of Bentilee is a really popular place to live
0:02:08 > 0:02:10and the housing here is pretty affordable.
0:02:10 > 0:02:13For instance, this looks fantastic.
0:02:13 > 0:02:17It is a three-bed, substantially-built semi-detached,
0:02:17 > 0:02:22guide price was £60,000 plus, close to the local amenities,
0:02:22 > 0:02:24great looking, what more could you want?
0:02:26 > 0:02:30And the house comes with a rather neat and tidy front garden.
0:02:35 > 0:02:38So what do you get for that relatively low guide price -
0:02:38 > 0:02:40the place is in a right old state?
0:02:40 > 0:02:41You might be surprised.
0:02:41 > 0:02:42Through the front door
0:02:42 > 0:02:45into this little area here, that is a kind of odd layout.
0:02:45 > 0:02:47I've never seen this before, because that, believe it or not,
0:02:47 > 0:02:50is the way to the stairs up to the bedrooms,
0:02:50 > 0:02:55but it maximises the space in the lounge and it's a good size.
0:02:55 > 0:02:57We've obviously got central heating, double glazing.
0:02:57 > 0:03:00That's going to save you a bit on the renovation.
0:03:00 > 0:03:01Through into the kitchen -
0:03:01 > 0:03:04now, it's not modern, and, yeah, you know,
0:03:04 > 0:03:06it needs a bit of money spending on it,
0:03:06 > 0:03:10but you've got a good size space here, lots of extra space
0:03:10 > 0:03:14out that way with a downstairs loo and little sort of utility area.
0:03:14 > 0:03:18It's an ex-local authority house, therefore it's solidly built
0:03:18 > 0:03:20and the rooms are a really good size.
0:03:20 > 0:03:24There's a lot of space to play with and I like that.
0:03:24 > 0:03:27OK, so it needs redecorating,
0:03:27 > 0:03:30but this house looks like it's been well looked after.
0:03:30 > 0:03:33It just needs a fresh, modern make-over to give it the best
0:03:33 > 0:03:36potential value in the present market.
0:03:38 > 0:03:44So, upstairs, and three bedrooms, two good-sized doubles
0:03:44 > 0:03:46and a sort of slightly smaller single.
0:03:46 > 0:03:49The only issue, you've got a good-sized bathroom,
0:03:49 > 0:03:54but that then leads on to the third bedroom, so that's really not ideal.
0:03:54 > 0:03:56So a strange kind of layout,
0:03:56 > 0:03:59which definitely could do with a bit of playing around with,
0:03:59 > 0:04:03but one thing you cannot complain about is the amount of space
0:04:03 > 0:04:07you've got here and with a bit of clever renovation,
0:04:07 > 0:04:08a bit of playing around with the layout,
0:04:08 > 0:04:12you'd end up with such a lovely, lovely family home.
0:04:12 > 0:04:16A bedroom that can only be accessed from the one bathroom in the house
0:04:16 > 0:04:18is not a good idea, but, other than that,
0:04:18 > 0:04:22it's a very promising property and we're not finished yet.
0:04:24 > 0:04:26I always get quite excited
0:04:26 > 0:04:29when I come to the rear of the auction properties I look at,
0:04:29 > 0:04:32cos you never know quite what you're going to find.
0:04:32 > 0:04:36Will it be ramshackle, will it be a jungle, will it be garden,
0:04:36 > 0:04:38will it be a mess?
0:04:38 > 0:04:41In this case, what a pleasant surprise,
0:04:41 > 0:04:42a really nice landscaped garden.
0:04:42 > 0:04:44Now, it might not be to everyone's cup of tea
0:04:44 > 0:04:46in terms of all these flagstones,
0:04:46 > 0:04:49but certainly if you were looking at renting this place out,
0:04:49 > 0:04:51it's ideal, cos it's low maintenance and actually,
0:04:51 > 0:04:54somebody has obviously spent a lot of time and effort.
0:04:54 > 0:04:57I'll tell you this, it's a really nice little space.
0:04:57 > 0:05:01Plus the added bonus of a semi-detached garden shed
0:05:01 > 0:05:02and all for a guide price
0:05:02 > 0:05:05of £60,000.
0:05:05 > 0:05:07We asked along a local property expert to see what
0:05:07 > 0:05:10they thought of the house.
0:05:10 > 0:05:14First impressions of the property is it's a good sized family home.
0:05:14 > 0:05:15Downstairs has got plenty of rooms.
0:05:15 > 0:05:17It's got an extra utility
0:05:17 > 0:05:19and a rear porch which will be fantastic for a growing family.
0:05:19 > 0:05:23The only downside to the property is it hasn't got any off-road parking.
0:05:23 > 0:05:27But it all comes down to location and what prices can be
0:05:27 > 0:05:31achieved here, so what potential does this property have?
0:05:31 > 0:05:32When the property's been renovated,
0:05:32 > 0:05:36we'd recommend an asking price of £85,000.
0:05:36 > 0:05:39If you got it for anything like that £60,000 guide price
0:05:39 > 0:05:42and did the work within a sensible budget,
0:05:42 > 0:05:45there could be a good chunk of profit in this house.
0:05:46 > 0:05:48What about as a rental investment?
0:05:48 > 0:05:53I'd imagine we'd ask a rental price of £495 per calendar month.
0:05:53 > 0:05:58Well, it just goes to show, doesn't it, that even in 2014,
0:05:58 > 0:06:01if you search them out, there are still property bargains to be had?
0:06:01 > 0:06:04It's a lovely house for not very much money and for that
0:06:04 > 0:06:08£60,000 plus guide price, got to be a popular lot at the auction.
0:06:08 > 0:06:10Let's see who bought it.
0:06:11 > 0:06:13Lot number 56. 45 bid.
0:06:13 > 0:06:17Thank you. At £45,000, can we see 46 now?
0:06:17 > 0:06:1846, 47,
0:06:18 > 0:06:2548, 49, 50, 51, 52,
0:06:25 > 0:06:30£52,000. 53 anywhere else? 52... 53.
0:06:30 > 0:06:3554? 54. 55?
0:06:35 > 0:06:39At... 55, 56. No?
0:06:39 > 0:06:41At £55,000, then.
0:06:41 > 0:06:44Standing there at £55,000, for the first time,
0:06:44 > 0:06:49£55,000 for the second time, third and final time at 55,000.
0:06:49 > 0:06:51You've bought it, sir. Well done.
0:06:51 > 0:06:53'And the lucky man to get this property for what
0:06:53 > 0:06:59'I reckon is a bargain at 55,000 is mortgage adviser Irvine.
0:06:59 > 0:07:03'This is his first property purchase at auction, but between him
0:07:03 > 0:07:07'and his wife, they now own seven investment properties.
0:07:07 > 0:07:11'Today, he's here with his friend Julie who will be helping
0:07:11 > 0:07:13'with this property refurbishment.'
0:07:13 > 0:07:16- Irvine, Julie, good to meet you both.- Yes, good to see you, Martin.
0:07:16 > 0:07:18- Nice to meet you too, Martin. - Congratulations.
0:07:18 > 0:07:21- Yeah, thank you.- I can't believe it went for what it did, actually.
0:07:21 > 0:07:23Neither could I and that's why I bought it.
0:07:23 > 0:07:26Yeah, was it not on your radar until that point...
0:07:26 > 0:07:31It was on about my D or E list and the price just...
0:07:31 > 0:07:34Well, they said they had to get rid of it.
0:07:34 > 0:07:37I'd looked at the packs and I'd put a few mortgages on houses around here,
0:07:37 > 0:07:41so I knew these were well built, so I thought, "Let's go for it."
0:07:41 > 0:07:43So somebody else had had a survey done on them.
0:07:43 > 0:07:46Oh, yeah, I've seen several surveys from around here.
0:07:46 > 0:07:48They're all built pretty much the same,
0:07:48 > 0:07:51so I didn't really actually need to see them.
0:07:51 > 0:07:54'It's handy that Irvine's job as a mortgage broker has already
0:07:54 > 0:07:56'made him well versed in these properties,
0:07:56 > 0:08:00'though, of course, individual houses can have their own issues,
0:08:00 > 0:08:05'so we'd still recommend always taking a look first.
0:08:05 > 0:08:07'Looks like he's been lucky with this one, though.'
0:08:07 > 0:08:10So, Julie, what's your involvement in all this?
0:08:10 > 0:08:13Well, basically, Irvine... I'm sort of the other end of the line
0:08:13 > 0:08:14when he needs to do things. Like,
0:08:14 > 0:08:16"Julie, how do you do wood flooring?
0:08:16 > 0:08:19"Julie, how do you do plumbing? How do you do this? How'd you do that?"
0:08:19 > 0:08:20- And I'm like...- Oh, right.
0:08:20 > 0:08:23Basically, what he's asked me to do is come in and have a look at it,
0:08:23 > 0:08:26so really my involvement is to get the guys in
0:08:26 > 0:08:30and change over the kitchen, the bathroom suite
0:08:30 > 0:08:34and do a little bit of an alternate route for the bathroom upstairs.
0:08:34 > 0:08:38Yeah, so I think it should be pretty straightforward.
0:08:38 > 0:08:39So, is this something you do?
0:08:39 > 0:08:42I've never really taken on anything quite so big as doing a kitchen,
0:08:42 > 0:08:45a bathroom and this, that and the other
0:08:45 > 0:08:46on my own house,
0:08:46 > 0:08:49however, I have sold lots of kitchens over the years
0:08:49 > 0:08:53to house builders, you know, to Joe Public and so on
0:08:53 > 0:08:55and I've even fitted one or two as well.
0:08:55 > 0:08:59Right. Wow. So what prompted you to bring Julie in?
0:09:00 > 0:09:03My total lack of experience, really.
0:09:03 > 0:09:04She's your International Rescue
0:09:04 > 0:09:09- and she's coming in with Thunderbird 1 and 2 and 3...- And 4.
0:09:09 > 0:09:10THUNDERBIRDS THEME PLAYS
0:09:10 > 0:09:14'I'm sure Irvine won't need the help of the Tracy family
0:09:14 > 0:09:17'as these two have a great working relationship.
0:09:17 > 0:09:20'He deals with the money, she deals with the DIY.'
0:09:20 > 0:09:22So what's the plan, then?
0:09:22 > 0:09:25The plan is that Julie will tell you all about the plan.
0:09:26 > 0:09:27Thanks, Irvine.
0:09:27 > 0:09:29Well, we thought maybe a little paint
0:09:29 > 0:09:31on these walls would go down...
0:09:31 > 0:09:34I'm only kidding. No, in actual fact, we need, er, gas...
0:09:34 > 0:09:38electrician sorting out, make sure everything is OK and then,
0:09:38 > 0:09:41you know, sort of work our way back, sort of thing, you know.
0:09:41 > 0:09:45'What's the plan to rescue the bathroom situation?'
0:09:45 > 0:09:46As you walk into the bathroom,
0:09:46 > 0:09:49you've got the bathroom sort of opens off,
0:09:49 > 0:09:50and off the bathroom,
0:09:50 > 0:09:52you've got a doorway that goes into a bedroom,
0:09:52 > 0:09:55so it's almost like an en-suite, but it's the main bathroom,
0:09:55 > 0:09:58so it seems a bit silly to leave it like that.
0:09:58 > 0:10:00We'd be better, I think...
0:10:00 > 0:10:03Irvine would be better to get the stud wall in there
0:10:03 > 0:10:06and get a door off to the bathroom
0:10:06 > 0:10:08and keep the door to the other bedroom
0:10:08 > 0:10:10and then we might be able
0:10:10 > 0:10:14to even perhaps get a shower in there behind,
0:10:14 > 0:10:17- if we've got enough money to do that.- Right.
0:10:17 > 0:10:21'Irvine has given Julie a budget of only £10,000,
0:10:21 > 0:10:25'so things might be a bit tight, but what about the timescale?'
0:10:25 > 0:10:27- ASAP.- Yeah.- As soon as possible, really.
0:10:27 > 0:10:31- However, I'd say over the next four to six weeks, really.- OK.- Yeah.
0:10:31 > 0:10:33Well, congratulations, both of you.
0:10:33 > 0:10:35- Look forward to seeing how it all turns out.- Thank you.
0:10:35 > 0:10:38- We'll be back.- Thank you very much. - Thanks a lot, Martin. Cheers.
0:10:38 > 0:10:42Well, you could spend a long time searching for a property
0:10:42 > 0:10:46that's as good as this and it seems like Irvine just stumbled on it.
0:10:46 > 0:10:48Well, good luck to him
0:10:48 > 0:10:52and I'm sure with Julie's help he'll do just fine sorting it out.
0:10:52 > 0:10:55You can find out how it turns out later in the show.
0:10:58 > 0:11:01So, are we going to stumble across a property just as good
0:11:01 > 0:11:05here in Surrey? Well, I'm in East Horsley.
0:11:05 > 0:11:09It's handily placed for Leatherhead and Guildford. A popular
0:11:09 > 0:11:12and affluent village, it's famous for its flint buildings
0:11:12 > 0:11:16designed by Lord Lovelace in the 19th century.
0:11:16 > 0:11:20The area around here is known as stockbroker belt
0:11:20 > 0:11:23because it's popular with London City types who want
0:11:23 > 0:11:27a semi-rural location, but still need an easy commute into London.
0:11:27 > 0:11:31Now, for commuters, the house I'm here to see will be ideal
0:11:31 > 0:11:35as it's only a few hundred yards from the local train station.
0:11:43 > 0:11:48East Horsley village significantly expanded in the 1930s
0:11:48 > 0:11:50with a lot of the housing stock, the main shopping areas
0:11:50 > 0:11:54and the station all being built around this period.
0:11:55 > 0:11:58But the property I'm here to see today hasn't quite stood
0:11:58 > 0:12:00the test of time.
0:12:01 > 0:12:03So, this is the property,
0:12:03 > 0:12:07a two-bedroom detached cottage on a 0.39-acre site.
0:12:07 > 0:12:10Now, the guide price, £500,000 plus.
0:12:10 > 0:12:14Now, that seems like a lot of money for a two-bed cottage,
0:12:14 > 0:12:17but this is an affluent and expensive area
0:12:17 > 0:12:22and the value here is in the plot, not the property.
0:12:22 > 0:12:25Look, it is ripe for redevelopment.
0:12:25 > 0:12:27Now, it already looks like a building site.
0:12:27 > 0:12:30You've got metal fencing here and the neighbouring house, well,
0:12:30 > 0:12:34it's already been knocked down, but, before we dismiss this cottage
0:12:34 > 0:12:39completely as a demolition job, let's take a look around inside.
0:12:47 > 0:12:50At the moment, the cottage looks like it's marooned in the middle
0:12:50 > 0:12:55of a muddy wasteland and the easiest way in is round the back.
0:12:57 > 0:13:00Well, not quite what I was expecting inside,
0:13:00 > 0:13:04but you can see some of the work has started.
0:13:04 > 0:13:07Look at all this wiring hanging out
0:13:07 > 0:13:11and somebody's already started to do the plastering on the walls,
0:13:11 > 0:13:14but by looking at the damp, look, I think
0:13:14 > 0:13:17this property has been derelict for quite a while.
0:13:17 > 0:13:19Now, I know there's no kitchen down here
0:13:19 > 0:13:23and the bathroom has not been plumbed in,
0:13:23 > 0:13:27so I would say it's unmortgageable as it stands at the moment,
0:13:27 > 0:13:30but on a positive note, look, you've got pretty windows,
0:13:30 > 0:13:33a little doorway, and a porch through here.
0:13:33 > 0:13:36You've got a good space, it's got character, you know,
0:13:36 > 0:13:39it does have the makings of a nice little house.
0:13:39 > 0:13:42Off this reception room is another living area,
0:13:42 > 0:13:47again, it's just a shell and then upstairs, there are two bedrooms.
0:13:47 > 0:13:51As with the rest of the house, work has been started here,
0:13:51 > 0:13:52but nothing is finished.
0:13:52 > 0:13:57You've just got bare walls, bare floors and a few bare wires.
0:14:07 > 0:14:08OK, the cottage is cute.
0:14:08 > 0:14:11I really like it, even if it does need a lot of work
0:14:11 > 0:14:13and you could do it up,
0:14:13 > 0:14:18extend it and have a lovely, rather large garden, but if you buy this
0:14:18 > 0:14:22as an investment, well, that's just not the way to maximise profit.
0:14:22 > 0:14:26If you want to make some cash, you need to pummel this property
0:14:26 > 0:14:31to the ground and build, not one, but several properties in its place.
0:14:31 > 0:14:34Now, there's no planning permission as yet to do that,
0:14:34 > 0:14:37but because there's a house already here, getting permission to build
0:14:37 > 0:14:40something else, well, it shouldn't be an issue.
0:14:40 > 0:14:44The question is, what will the local council let you build here
0:14:44 > 0:14:48and how many properties will they let you squeeze in here?
0:14:48 > 0:14:50You've got to think about all of that before even
0:14:50 > 0:14:52bidding for this at auction.
0:14:58 > 0:15:00To get the lowdown on the market here,
0:15:00 > 0:15:02we asked a local property expert
0:15:02 > 0:15:04what he thought would happen
0:15:04 > 0:15:09to this cottage and the plot with its guide price of 500,000.
0:15:09 > 0:15:13I think ultimately the cottage is going to be knocked down
0:15:13 > 0:15:16and the site will be developed for new housing.
0:15:16 > 0:15:19What that housing will be will obviously depend on planning consent,
0:15:19 > 0:15:25erm, I suspect and I hope that it will be perhaps mews-type townhouses
0:15:25 > 0:15:27which I think would go very well in the village.
0:15:27 > 0:15:30If you were to build a four-bedroom townhouse,
0:15:30 > 0:15:33say, for argument's sake, around 2,000 square feet,
0:15:33 > 0:15:39that should realise something in the region of £850,000-£900,000.
0:15:39 > 0:15:41And if you didn't gain planning permission
0:15:41 > 0:15:43and just renovated what's here.
0:15:43 > 0:15:49I can see it realising something in the region of £700,000-£750,000.
0:15:49 > 0:15:52OK, and what about the option of renting?
0:15:52 > 0:15:56This cottage, I suspect, would realise something between
0:15:56 > 0:15:58£1,200 and £1,500 per calendar month.
0:15:58 > 0:16:00If new properties were built,
0:16:00 > 0:16:04and, again, of the similar size that we were talking about earlier,
0:16:04 > 0:16:08they should realise something in the region of £3,000 per calendar month.
0:16:08 > 0:16:09Done up and extended,
0:16:09 > 0:16:11this house could really make a lovely home,
0:16:11 > 0:16:15but with property prices at a premium round here,
0:16:15 > 0:16:18I would opt to knock this down and apply for planning permission
0:16:18 > 0:16:22to build, but what will the new owner decide to do?
0:16:22 > 0:16:25Let's find out who bought it at the auction.
0:16:28 > 0:16:32450 to the phone, 465, 480 on the phone,
0:16:32 > 0:16:35500 in the room,
0:16:35 > 0:16:39515, 530, 530...
0:16:39 > 0:16:42As I thought, this was a very popular lot.
0:16:42 > 0:16:46We rejoin the bidding and £640,000.
0:16:46 > 0:16:53640, 645, 650, 655,
0:16:53 > 0:16:57660,
0:16:57 > 0:17:02665, 670,
0:17:02 > 0:17:05675, 680,
0:17:05 > 0:17:09680, 685?
0:17:09 > 0:17:14680, first time, second time, third and last time.
0:17:14 > 0:17:18If you're all done, sold 680. Well done. Sorry to...
0:17:20 > 0:17:24'Fighting off the competition with a successful bid of 680,000,
0:17:24 > 0:17:28'Dennis and his business partner Brian were certainly never
0:17:28 > 0:17:30'going to give up on this opportunity.
0:17:31 > 0:17:35'I met up with one half of the duo back at the property to see
0:17:35 > 0:17:38'what they had in store for their latest purchase.'
0:17:38 > 0:17:41Brian, congratulations, you must be so pleased.
0:17:41 > 0:17:44Yes, we are, we've done really well. Yeah, very, very pleased.
0:17:44 > 0:17:47So tell me about auction day. Did you expect to get this?
0:17:47 > 0:17:50Erm, we were going to try very, very hard.
0:17:50 > 0:17:52We went for a cup of tea before the auction,
0:17:52 > 0:17:55so we just had a quick chat and we set a limit at 650,000.
0:17:55 > 0:17:57We said we're not going to pay any more than that,
0:17:57 > 0:17:59that's going to be our top.
0:17:59 > 0:18:01Anyway, in the end, we paid 680,000.
0:18:01 > 0:18:05- Dennis couldn't stop putting his hand up.- And how did you feel about that?
0:18:05 > 0:18:07Good, we probably would have paid more, actually.
0:18:07 > 0:18:10- We really wanted the site.- So when you said 650, you were both lying?
0:18:10 > 0:18:13We were. 100%. Yeah. We would have carried on.
0:18:13 > 0:18:16So what's yours and Dennis's background?
0:18:16 > 0:18:22Dennis is more into the automotive paint product, really, selling paint,
0:18:22 > 0:18:25whereas I've been in the building... carpenter by trade,
0:18:25 > 0:18:28so just come through really. That's how it works.
0:18:28 > 0:18:31'Dennis and Brian have been successfully running
0:18:31 > 0:18:35'their own property development company for the last four years
0:18:35 > 0:18:38'with Brian taking care of project management
0:18:38 > 0:18:40'and Dennis looking after the finances.'
0:18:41 > 0:18:45So, with this plot, it doesn't come with planning permission,
0:18:45 > 0:18:48you've got a little cottage sitting there, which is all very nice
0:18:48 > 0:18:50and pretty, but what are you going to do?
0:18:50 > 0:18:54We're going to try and work with the local authority on planning.
0:18:54 > 0:18:58Hopefully, we will achieve four townhouses on three storeys
0:18:58 > 0:19:02and possibly a unit into the rear, which will be good.
0:19:02 > 0:19:05- That will be a bonus for us. - So is that coming down?
0:19:05 > 0:19:07It will come down eventually, yes.
0:19:07 > 0:19:12We're also in some negotiations with surrounding bits of land,
0:19:12 > 0:19:15so it might grow into something about eight units at the end.
0:19:15 > 0:19:18So, so far you've spent £680,000.
0:19:18 > 0:19:20How much do you think you're going to need to build?
0:19:20 > 0:19:22If we achieve the five units,
0:19:22 > 0:19:24we'd be looking at sort of about 1.2 million build costs,
0:19:24 > 0:19:26- something around that sort of money, really.- Wow.
0:19:26 > 0:19:29How long do you think that's going to take you
0:19:29 > 0:19:32- for the four units initially?- For four units, it will probably take us
0:19:32 > 0:19:34about 14 months from start to finish, really.
0:19:37 > 0:19:39So, as far as Brian's concerned,
0:19:39 > 0:19:43it could be the end of the road for the little cottage.
0:19:43 > 0:19:47But then, its fate really lies in the hands of the local planners.
0:19:47 > 0:19:49So do you think you'll be up against it with the planners?
0:19:49 > 0:19:52Do you think this will be quite a straightforward build?
0:19:52 > 0:19:54It's never, ever straightforward with planning.
0:19:54 > 0:19:57It's an absolute can of worms, really.
0:19:57 > 0:20:00You've just got to try and bring everybody into it, get the planners
0:20:00 > 0:20:04on side to start with, and just see what they would accept, really.
0:20:04 > 0:20:06But it's got to be achieved through planning,
0:20:06 > 0:20:09otherwise we're sitting on a little tiny house with a great big garden.
0:20:09 > 0:20:12# No guarantee, hey! #
0:20:12 > 0:20:15'So, it all hangs on getting the planning permission they need,
0:20:15 > 0:20:18'but helping Brian and Dennis along the way
0:20:18 > 0:20:20'will be their architect Marek.'
0:20:20 > 0:20:24Well, how exciting! What is your vision for this site?
0:20:24 > 0:20:26Right, well, we have a set of plans here,
0:20:26 > 0:20:29which we've sort of put together. We're hoping to keep
0:20:29 > 0:20:34- the townhouses the same height as that block there.- So you get a nice
0:20:34 > 0:20:35- sort of swoop round?- Yeah.
0:20:35 > 0:20:39So we're going to work hard to try and make it fit in there.
0:20:39 > 0:20:41And what is the sort of look of the property?
0:20:41 > 0:20:43We will incorporate some of the clay features and
0:20:43 > 0:20:46some of the brickwork details that we've got on the existing building.
0:20:46 > 0:20:49Now, obviously, this is the most important aspect,
0:20:49 > 0:20:52- the fact that you get the four townhouses.- Yes.
0:20:52 > 0:20:54But then, you have got quite a large site with a big,
0:20:54 > 0:20:58big plot of land at the back there, which is ideal for a house.
0:20:58 > 0:21:01How many problems will you have to overcome with this,
0:21:01 > 0:21:02because where's the access going to be?
0:21:02 > 0:21:06- Will you have to come along here? - Yes, we'll have, right at the front,
0:21:06 > 0:21:09with a gated entrance and into a nice little courtyard of its own.
0:21:09 > 0:21:11Well, it's been fantastic meeting you.
0:21:11 > 0:21:15- I can't wait to see the outcome and hear the story behind it all.- OK.
0:21:15 > 0:21:18- Lovely to meet you.- And you. - Thank you very much indeed.
0:21:18 > 0:21:21Well, as they say, money makes money and
0:21:21 > 0:21:26Brian and business partner Dennis are planning to spend big bucks here
0:21:26 > 0:21:29in order to, hopefully, make some big profits.
0:21:29 > 0:21:31But it's a massive investment.
0:21:31 > 0:21:35680 grand for the cottage and plot
0:21:35 > 0:21:38and over a million quid in estimated build costs
0:21:38 > 0:21:42and it's going to take them well over a year of their lives.
0:21:42 > 0:21:45But it all hangs on them
0:21:45 > 0:21:49getting planning permission to build enough properties to make a profit.
0:21:49 > 0:21:52So, will it work out for Brian and Dennis?
0:21:52 > 0:21:54You can find out later on in the programme.
0:21:56 > 0:21:58Coming up, in Wales,
0:21:58 > 0:22:01a bit of a laugh at the start of this renovation.
0:22:01 > 0:22:05He put his hand up, I burst out laughing, as it goes.
0:22:07 > 0:22:09But at the end of this one in Surrey,
0:22:09 > 0:22:12will the profits leave Brian and Dennis laughing too?
0:22:12 > 0:22:15It's a lot more than we thought when we first started building.
0:22:20 > 0:22:25Back to Bentley in Stoke, where we met mortgage broker Irvine
0:22:25 > 0:22:28and his DIY enthusiast friend Julie.
0:22:28 > 0:22:31In his first foray into auction buying,
0:22:31 > 0:22:35Irvine bought this three-bed semi for an amazing 55,000.
0:22:38 > 0:22:40He hadn't viewed the property before buying,
0:22:40 > 0:22:43but that doesn't mean Irvine wasn't prepared.
0:22:43 > 0:22:46I've put a few mortgages on houses around here,
0:22:46 > 0:22:49so I knew these were well built, so I thought, "Let's go for it."
0:22:49 > 0:22:51So somebody else has had a survey done on them?
0:22:51 > 0:22:53Oh, yeah, I've seen several surveys from round here,
0:22:53 > 0:22:55and they're all built pretty much the same.
0:22:55 > 0:23:00- So, Julie, what's your involvement in all this?- Really, my involvement
0:23:00 > 0:23:04is to get the guys in and change over the kitchen, the bathroom suite
0:23:04 > 0:23:08and do a little bit of an alternate route for the bathroom upstairs,
0:23:08 > 0:23:12yeah, so I think it should be pretty straightforward.
0:23:14 > 0:23:18Straightforward? Hmm, how often have we heard that?
0:23:18 > 0:23:20There was a lot of work to be done.
0:23:20 > 0:23:23A strange layout downstairs at the front door
0:23:23 > 0:23:26and the problem of one of the bedrooms only being
0:23:26 > 0:23:30accessible through the bathroom needed to be sorted out.
0:23:30 > 0:23:35Julie was given £10,000 to play with and as for timescales?
0:23:35 > 0:23:38- ASAP.- Yeah.- As soon as possible, really.- However...
0:23:38 > 0:23:42- But?- I say over the next four to six weeks, really.- OK.- Yeah.
0:23:42 > 0:23:44MUSIC: "I Can't Go For That" by Hall and Oates
0:23:44 > 0:23:46I'm impressed by Julie's optimism.
0:23:46 > 0:23:49So, six weeks, £10,000
0:23:49 > 0:23:54and a property waiting to be transformed. How did it go?
0:23:54 > 0:23:59Well, we're back ten weeks later to find out. Over to you, Julie.
0:23:59 > 0:24:04- # Call me, call on me! - Baby, baby!
0:24:04 > 0:24:08# Do, do, do it! Baby, please! #
0:24:13 > 0:24:16Wow! This looks like a completely different house!
0:24:16 > 0:24:20But it's been more than just a cosmetic make-over.
0:24:20 > 0:24:22We also needed to have the electrics checked.
0:24:22 > 0:24:24Once the checks had been done,
0:24:24 > 0:24:26we realised that the whole house wanted rewiring
0:24:26 > 0:24:29and so, we've done all of that, stripped it all back,
0:24:29 > 0:24:30plastered every single room,
0:24:30 > 0:24:33new kitchen, new bathroom, new carpets throughout,
0:24:33 > 0:24:35and we have actually knocked a few walls through,
0:24:35 > 0:24:38as you'll probably be able to tell when you walk in.
0:24:39 > 0:24:43I really don't think Julie could have done a better job here.
0:24:43 > 0:24:46She's made alterations exactly where they needed to be made,
0:24:46 > 0:24:49especially with the upstairs layout.
0:24:49 > 0:24:52Previously, the only way of entering the bedroom
0:24:52 > 0:24:55was through the bathroom and so, what we've done is
0:24:55 > 0:24:59we've put an entrance to the bathroom and an entrance for the bedroom.
0:24:59 > 0:25:03We halved the size of the bathroom, cos it was a significant size.
0:25:03 > 0:25:06We've made enough room for a shower at some stage,
0:25:06 > 0:25:07should that be required.
0:25:09 > 0:25:12This issue could have been easily ignored,
0:25:12 > 0:25:15so it's to their credit that it's been addressed.
0:25:15 > 0:25:17Not only that, but they have also improved
0:25:17 > 0:25:21the downstairs layout no end, by creating a new hallway
0:25:21 > 0:25:25that leads from the front door directly to the kitchen.
0:25:25 > 0:25:29However, such improvements cost money.
0:25:29 > 0:25:34How did it affect that £10,000 budget Irvine gave Julie to spend?
0:25:34 > 0:25:36The budget's come in at about 16,800,
0:25:36 > 0:25:39but, given the quality of the work, um,
0:25:39 > 0:25:43and the total metamorphosis of the property, I'm quite happy with that
0:25:43 > 0:25:47and, hopefully, we'll kind of recoup that on the resale value.
0:25:47 > 0:25:50Well, considering the complete rewire, and some pretty
0:25:50 > 0:25:55substantially layout changes, that doesn't seem too bad at all.
0:25:55 > 0:25:59And, after all, Irvine did get the house for 55,000,
0:25:59 > 0:26:03which was £5,000 less than the guide price.
0:26:03 > 0:26:05Given Julie has sold kitchens in the past,
0:26:05 > 0:26:08she's pretty pleased with this one, as you'd expect.
0:26:08 > 0:26:10As you can see, we've had a brand-new kitchen in here.
0:26:10 > 0:26:13We've taken the old kitchen out - it was a little bit dated -
0:26:13 > 0:26:17and replaced it with this high-gloss on-wall carcass,
0:26:17 > 0:26:21with new oven, hob and hood and, er, new splash backs.
0:26:21 > 0:26:23I'm really, really pleased with it. It looks fantastic.
0:26:25 > 0:26:30A tremendous effort by Julie, with Irvine's support, of course.
0:26:30 > 0:26:32# Lean on me... #
0:26:33 > 0:26:37The goal initially was to complete everything within six weeks.
0:26:37 > 0:26:39I always felt that was optimistic,
0:26:39 > 0:26:41but who doesn't love a bit of optimism?
0:26:43 > 0:26:46We thought it was going to take about four to six weeks.
0:26:46 > 0:26:48Um, however, because of everything that needed to be done,
0:26:48 > 0:26:50like the extra plastering and the rewiring and so on,
0:26:50 > 0:26:55that extended it quite a lot, because every single room had to be
0:26:55 > 0:27:00sorted out, so, yeah, it's actually now taken just under three months.
0:27:03 > 0:27:06Underestimating schedules is very common with renovations,
0:27:06 > 0:27:09but completing them to such a high standard is not.
0:27:11 > 0:27:12With the hard work done,
0:27:12 > 0:27:16what are Irvine's thoughts about the future for this property?
0:27:16 > 0:27:19At the time, I was more inclined towards renting,
0:27:19 > 0:27:22because I've got some other rented properties. I think I'm just waiting
0:27:22 > 0:27:25to see basically what kind of value the estate agents put on it,
0:27:25 > 0:27:31and if I can get it shut for, perhaps 89,000, something like 90,000,
0:27:31 > 0:27:33um, I'd be more than happy to sell it.
0:27:34 > 0:27:38The total spend on the property is £71,800.
0:27:38 > 0:27:42So, let's find out if he's going to make the profit he hoped for
0:27:42 > 0:27:45or is he going to rent this lovely house?
0:27:46 > 0:27:49Two local estate agents came along
0:27:49 > 0:27:50to help Irvine make up his mind.
0:27:50 > 0:27:54But first, what do they think of Julie's efforts?
0:27:54 > 0:27:57Coming in the second time, it's like walking into a new build.
0:27:57 > 0:28:00It's been completely refurbished from top to bottom.
0:28:00 > 0:28:02It's got a fantastic kitchen, fantastic bathroom,
0:28:02 > 0:28:06new boiler, new electrics. It's just ready to move into.
0:28:06 > 0:28:12The new bathroom and new kitchen are always big points with buyers.
0:28:12 > 0:28:16Um, so they've both been changed
0:28:16 > 0:28:19and just the overall feel and the decor of the property.
0:28:19 > 0:28:22I think making the hall straight through is a great idea,
0:28:22 > 0:28:25especially if you're coming in and have your shopping bags, instead of
0:28:25 > 0:28:28traipsing through the lounge, you're straight into the kitchen area.
0:28:28 > 0:28:33So, lots of positives, but how does that translate in monetary terms?
0:28:33 > 0:28:36From the point of view of a resale on the property,
0:28:36 > 0:28:43I think an appropriate asking price at this time would be £79,950.
0:28:43 > 0:28:46I think the owner, with what they've done to the property and so on,
0:28:46 > 0:28:50I would probably recommend an asking price of £85,000.
0:28:50 > 0:28:54The figure of obviously 85 is obviously a lot better than 79,950.
0:28:54 > 0:28:59Um, I've seen them on for 85, um, around here and
0:28:59 > 0:29:03so I was hoping for more like about 89,950, given it was a full refurb.
0:29:05 > 0:29:08A bit disappointed with those resale figures there.
0:29:08 > 0:29:10But that top estimate would still
0:29:10 > 0:29:15give a potential pre-tax profit of over £13,000. Not bad at all.
0:29:16 > 0:29:19Will the rental figures be better news?
0:29:19 > 0:29:24I would suggest a figure of £425 per calendar month.
0:29:24 > 0:29:29Rental, I would recommend a rental price of £450 per calendar month.
0:29:29 > 0:29:31Given that, I think I'll probably end up renting.
0:29:34 > 0:29:37Easy decision for Irvine, then, and, in my opinion, the correct one.
0:29:39 > 0:29:44£450 a month will give him an annual 7% return on his investment.
0:29:44 > 0:29:47Now that's what I call a solid outcome.
0:29:47 > 0:29:49# And now it's solid
0:29:51 > 0:29:53# Solid as a rock! #
0:29:53 > 0:29:56With the job completed, what words of wisdom
0:29:56 > 0:30:00can our property duo share with new developers?
0:30:00 > 0:30:02I think that, um, if anything,
0:30:02 > 0:30:06you can't go into it too sort of, er, blase.
0:30:06 > 0:30:08You've got to make sure that you've got the right team,
0:30:08 > 0:30:11like I said before, around you and make sure that you're not
0:30:11 > 0:30:14going to go over the top on the spend as well.
0:30:14 > 0:30:18I've realised that there is a ceiling on these properties and,
0:30:18 > 0:30:20if you do produce something high spec,
0:30:20 > 0:30:26um, that people are not necessarily willing to pay for the extra,
0:30:26 > 0:30:29um, expenditure on the specifications.
0:30:31 > 0:30:32Two great pieces of advice
0:30:32 > 0:30:35from a team that clearly work well together.
0:30:37 > 0:30:39So, will this pair be joining forces again?
0:30:39 > 0:30:43That's dependent upon Irvine's answer.
0:30:43 > 0:30:44Oh, absolutely! SHE LAUGHS
0:30:44 > 0:30:47Absolutely, I've already checked... I'd like to check out
0:30:47 > 0:30:51- Julie's availability for the next three or four months.- Good lad.
0:30:51 > 0:30:55- Good lad indeed! - # That's what friends are for... #
0:31:02 > 0:31:05We're heading now to the little village of Abercwmboi,
0:31:05 > 0:31:08which sits in the Cynon Valley in the south of Wales.
0:31:09 > 0:31:14It offers many local amenities in the village and nearby.
0:31:14 > 0:31:18'It's just a couple of miles from the bigger town of Aberdare.'
0:31:18 > 0:31:22Well, situated on one of the main roads through the valley is
0:31:22 > 0:31:24the property I'm here to see, so, straightaway,
0:31:24 > 0:31:26not ideal to be on this main road.
0:31:26 > 0:31:28Um, however, I like the exterior.
0:31:28 > 0:31:31It's nice stonework. That's attractive.
0:31:31 > 0:31:34As is the guide price.
0:31:34 > 0:31:37£23,000 plus.
0:31:37 > 0:31:40Two bedroom, mid-terrace. Let's have a look.
0:31:42 > 0:31:46- So, fairly low expectations. - HE LAUGHS
0:31:46 > 0:31:49Are they going to be met? Or will I be surprised?
0:31:49 > 0:31:53Well, um, entrance there, stairs up to your bedrooms.
0:31:53 > 0:31:57I like the fact you've got this door here, which you can close off,
0:31:57 > 0:32:00keeps out a little bit of the noise and also the cold and then,
0:32:00 > 0:32:03into your front living room. You've got a gas fire, double glazing.
0:32:03 > 0:32:08Well, you are going to need that for sure, for more than noise again.
0:32:08 > 0:32:13Um, but it's not a bad-sized space. In fact, straightaway,
0:32:13 > 0:32:18quite an open feel, um, through this door into the kitchen. Look at this!
0:32:18 > 0:32:21Perfectly serviceable. I mean, you know,
0:32:21 > 0:32:24not the most modern units, all that stuff,
0:32:24 > 0:32:28but with a bit of sprucing up, I think this could be pretty good.
0:32:28 > 0:32:30Great views out the back there.
0:32:30 > 0:32:36And just from the front, what could be quite a claustrophobic little
0:32:36 > 0:32:43terraced house has turned into a really, really serviceable space.
0:32:43 > 0:32:48# Say, hey, good looking
0:32:48 > 0:32:51# What you got cooking? #
0:32:51 > 0:32:54A good-looking property and not a bad guide price.
0:32:54 > 0:32:56So much for my low expectations.
0:32:56 > 0:33:01However, this kitchen also has a unique selling point.
0:33:01 > 0:33:04Now, one of the things I love when I'm wondering around houses
0:33:04 > 0:33:08is discovering those little design touches which just make you think...
0:33:08 > 0:33:11Wow! Where did that come from?
0:33:11 > 0:33:16And in this kitchen, there is an absolute doozy. Look at this.
0:33:16 > 0:33:19Fantastic! On the work surface, studs!
0:33:19 > 0:33:23Now, I know it's probably for putting pans on.
0:33:23 > 0:33:26But don't you think it turns this kitchen into a...
0:33:26 > 0:33:30punk or heavy rock kitchen?
0:33:30 > 0:33:33Oh, I know! It's a Billy Idol kitchen!
0:33:33 > 0:33:35Nice day for a white wedding.
0:33:35 > 0:33:38# It's a nice day to...
0:33:38 > 0:33:41# Start again! #
0:33:43 > 0:33:46So, upstairs, and really good news.
0:33:46 > 0:33:50Bathroom and toilet here, where, ideally, it should be.
0:33:50 > 0:33:52Now, often with these kind of properties,
0:33:52 > 0:33:56the loo is extended on from the kitchen. That's not ideal.
0:33:56 > 0:33:59This is great. Um, two bedrooms. The first one there.
0:33:59 > 0:34:03Er, well, er, it's a bit small and wow!
0:34:03 > 0:34:05What about that colour?
0:34:05 > 0:34:07Great if you like frogs!
0:34:09 > 0:34:13Ooh! Ha-ha! Ideally, I think something a little bit more neutral.
0:34:13 > 0:34:16But then, through into the front bedroom, er, which is
0:34:16 > 0:34:21not only a better colour, but also a slightly bigger size, um,
0:34:21 > 0:34:23so that's good news.
0:34:23 > 0:34:26It could actually be even bigger. If it wasn't for this!
0:34:26 > 0:34:32How about that for a central heating system/water heater?
0:34:32 > 0:34:33Wow!
0:34:33 > 0:34:36- ENGINE REVS LOUDLY - Ooh! Noise from the road!
0:34:36 > 0:34:38Um, yeah, get rid of that, I think.
0:34:38 > 0:34:44- HE EXHALES:- Combination boiler in the kitchen is definitely required!
0:34:44 > 0:34:48The property is a nice size and has a layout with a lot going for it,
0:34:48 > 0:34:51but there are a couple of things that raise concerns.
0:34:51 > 0:34:53# It's not easy
0:34:53 > 0:34:55# Being green... #
0:34:55 > 0:34:57No, not just the green!
0:34:57 > 0:35:00These cracks in here could well be superficial,
0:35:00 > 0:35:03but would definitely be worth looking into further.
0:35:04 > 0:35:07And back in the main bedroom, there's quite a bit of damp
0:35:07 > 0:35:10around the window, which is also pretty worrying.
0:35:12 > 0:35:16Better check out what the back has to offer.
0:35:16 > 0:35:19Well, at the back of the property, not only have you got lovely views,
0:35:19 > 0:35:24you've also got a bit of water, and that's not the only surprise.
0:35:24 > 0:35:27'Not a bad spot for some wedding photos, might I suggest.
0:35:27 > 0:35:30'But more excitingly, look what I found.'
0:35:30 > 0:35:34Down these steps that also lead to the garden
0:35:34 > 0:35:39and you come across a kind of basement room.
0:35:39 > 0:35:41Now, apart from this door, there's no windows.
0:35:41 > 0:35:45But a very useful either storage area or perhaps little office.
0:35:45 > 0:35:48An additional bonus I wasn't expecting.
0:35:50 > 0:35:53The stairs to the garden are quite steep and not that pretty
0:35:53 > 0:35:56and, sad to say, neither is the garden,
0:35:56 > 0:36:00but it is a fair size, I think, possibly, underneath all that.
0:36:01 > 0:36:03There's also access to the rear,
0:36:03 > 0:36:07so potential off-road parking is available.
0:36:07 > 0:36:12The bonuses keep adding up here and, at that guide price of 23,000,
0:36:12 > 0:36:15this lot is a property that keeps on giving.
0:36:15 > 0:36:17What does a local estate agent think of it?
0:36:18 > 0:36:21The property needs updating
0:36:21 > 0:36:26and needs a new kitchen, bathroom, redecoration throughout.
0:36:26 > 0:36:29And the property is located on a main road,
0:36:29 > 0:36:31so, unfortunately, parking is limited.
0:36:31 > 0:36:35But who would be attracted to a property like this
0:36:35 > 0:36:37once the work is done?
0:36:37 > 0:36:39After renovation has taken place,
0:36:39 > 0:36:43the property would be suited to a first-time buyer with a small deposit
0:36:43 > 0:36:47or an investor who would look at buying the property for buy-to-let.
0:36:47 > 0:36:49After the work has been carried out,
0:36:49 > 0:36:54I would expect that the property would achieve between 35 and 40,000.
0:36:54 > 0:36:58If you keep costs down, and buy for anything near
0:36:58 > 0:37:02that guide price of £23,000, there could be a tidy profit.
0:37:03 > 0:37:08But the rental market round here is strong and worth considering.
0:37:08 > 0:37:10I would expect the property
0:37:10 > 0:37:15would achieve between £320 and £340 per calendar month.
0:37:15 > 0:37:16So, what do you think?
0:37:16 > 0:37:19Surprisingly nice house for the money, for sure.
0:37:19 > 0:37:23Let's see who agreed and bought it when it went under the hammer.
0:37:23 > 0:37:27Traditional mid-terrace house, UPVC double glazed, gas central heated.
0:37:27 > 0:37:29Guided at £23,000.
0:37:29 > 0:37:31Where do you start me? Start me at around 20, will you?
0:37:31 > 0:37:33£20,000, let's get it started.
0:37:33 > 0:37:36Thank you, 20, I've got you there, at 20,000. At 20,000. One can I see?
0:37:36 > 0:37:39I've got 20 there. One I'm looking for.
0:37:39 > 0:37:4121, thank you. 22 now.
0:37:41 > 0:37:4422, back to you? 22. 23. 24.
0:37:44 > 0:37:4825. 26. 26. 27.
0:37:48 > 0:37:5028. 28? 28? No.
0:37:50 > 0:37:54At £27,000. I'll take a half number, if you want.
0:37:54 > 0:37:58Or it's going to be sold at £27,000, for the first time.
0:37:58 > 0:38:00At 27,000, second time.
0:38:00 > 0:38:02Third... 27½.
0:38:02 > 0:38:0428. Bad luck! 28?
0:38:04 > 0:38:0728? Are you sure? Well, that could have been his one and only bid.
0:38:07 > 0:38:10At 27½, then, I've got, by the pillar.
0:38:10 > 0:38:12For the first time.
0:38:12 > 0:38:1427½, then, for the second time.
0:38:14 > 0:38:17Third and last time, £27,500...
0:38:17 > 0:38:19GAVEL BANGS Well done, sir, yours.
0:38:19 > 0:38:23'Jumping right in with that audacious bid of 27,500
0:38:23 > 0:38:25'has paid off for business partners
0:38:25 > 0:38:29'and first-time property developers Raul and Luke.
0:38:30 > 0:38:33'Raul, who is a criminal lawyer, and Luke,
0:38:33 > 0:38:35'who runs a double glazing company, both live locally
0:38:35 > 0:38:39'and they've decided to take on property developing together.'
0:38:39 > 0:38:41# Jump right in
0:38:41 > 0:38:46# Let the music pull you in Jump right in... #
0:38:46 > 0:38:50- Luke, Raul, lovely to meet you both. - Nice to meet you.- Congratulations.
0:38:50 > 0:38:53- Thank you.- Tell me why you wanted to buy the house.
0:38:53 > 0:38:59Um, basically, we went to the auction to buy a house further up the road,
0:38:59 > 0:39:03um, and we were in the auction, this came at the right price
0:39:03 > 0:39:08and he put his hand up, I burst out laughing, as it goes.
0:39:08 > 0:39:14I can remember walking into the auctioneers, to do the paperwork,
0:39:14 > 0:39:19and Raul said, "Where is the house?" So we burst out laughing
0:39:19 > 0:39:22and then we came in here and had a little look in the night.
0:39:22 > 0:39:24As it happens, it's a nice little property.
0:39:24 > 0:39:27Talk me through the auction process. What was going on in your brain?
0:39:27 > 0:39:31Nothing. When this property came at a certain price,
0:39:31 > 0:39:32it got stuck on that
0:39:32 > 0:39:35and the auctioneer said if anybody would want to put a 500 up.
0:39:35 > 0:39:37So I thought, maybe let's try this.
0:39:37 > 0:39:41It's not a very high price for a property.
0:39:41 > 0:39:45Something we could work on with. In the area that we know.
0:39:45 > 0:39:48Now, as you know, it's a Hammer golden rule that you should
0:39:48 > 0:39:52view the property before you stick your hand up at the auction.
0:39:52 > 0:39:56Lucy tells you, I tell you and still some people don't do it!
0:39:56 > 0:39:58Tut! Tut!
0:39:58 > 0:40:01However, these two had good local knowledge
0:40:01 > 0:40:04so it was a calculated risk.
0:40:04 > 0:40:06But I'm curious as to what brought Raul,
0:40:06 > 0:40:10a criminal lawyer, and Luke together on this project.
0:40:10 > 0:40:12Luke's father works for me.
0:40:12 > 0:40:15Luke has helped us in the business a bit, doing bits and pieces.
0:40:15 > 0:40:18When I saw him, he's always keen, he's come up with ideas
0:40:18 > 0:40:21and all sorts of things of developing property.
0:40:21 > 0:40:22I had a discussion with him and I said,
0:40:22 > 0:40:24"Why don't we go for this auction?"
0:40:24 > 0:40:26- Have you got any building experience?- I have.
0:40:26 > 0:40:30I buy and sell houses. I've got two not far from here.
0:40:30 > 0:40:33But I'm a window fitter. I own a double-glazing business.
0:40:33 > 0:40:36I'm always in builders, doing work for them
0:40:36 > 0:40:39and I've always took an interest in property.
0:40:39 > 0:40:43- So you have done the whole...- Yeah.
0:40:43 > 0:40:45Tell me what you're going to do to sort it out.
0:40:45 > 0:40:50The first thing, we're going to strip all the paint back, get
0:40:50 > 0:40:53the messy stuff out of the way first like the garden and things like that.
0:40:53 > 0:40:57And then just start from scratch and decorate it.
0:40:57 > 0:41:00Obviously, carpets are done last thing.
0:41:00 > 0:41:03- We'll just take our time and see how it goes.- Right.
0:41:03 > 0:41:08With a view to doing it up for the rental market, is that the idea?
0:41:08 > 0:41:11If it doesn't sell then yes, we'll rent.
0:41:11 > 0:41:15But the idea is to put it back on the market for resale.
0:41:15 > 0:41:18The profit depends on how much you're going to spend
0:41:18 > 0:41:20doing it up. What is the budget for that?
0:41:20 > 0:41:25- Luke says four to six, I say three to five!- We'll see how it goes!
0:41:25 > 0:41:27First argument on the cards!
0:41:27 > 0:41:29It should really sell.
0:41:29 > 0:41:33You've got the train station down there, you've got the centre up there
0:41:33 > 0:41:36so it is not in a bad location.
0:41:36 > 0:41:38You've got a nice view behind as well.
0:41:38 > 0:41:40The view is amazing. There's a little lake behind.
0:41:40 > 0:41:43You can go swimming or fishing, whatever you fancy!
0:41:43 > 0:41:46Well, before Luke gets his swimming trunks on,
0:41:46 > 0:41:49he'll be rolling up his sleeves and doing the majority of the work
0:41:49 > 0:41:54himself, whilst Raul will take more of a back seat day-to-day.
0:41:54 > 0:41:59- But how long do they envisage it taking them?- Four to six weeks.
0:41:59 > 0:42:01- Four to six weeks.- At least you agree on that.- But if...
0:42:01 > 0:42:04Like if you were in here constantly, I think
0:42:04 > 0:42:07it's only like two to three weeks' work anyway, maximum.
0:42:07 > 0:42:12We're not going to be here all the time. It's just one of them things.
0:42:12 > 0:42:14We've got other stuff to do.
0:42:14 > 0:42:18- If you take some time off, we can do it in a week!- Congratulations.
0:42:18 > 0:42:22- Good luck with it. We look forward to seeing how you get on.- Cheers.
0:42:23 > 0:42:27Well, it may have been a bit of a random purchase by Raul and Luke
0:42:27 > 0:42:31but they certainly have a good plan for this nice little property.
0:42:31 > 0:42:33But plans can go wrong
0:42:33 > 0:42:36and they still have to agree a budget between them.
0:42:36 > 0:42:40How will they get on? You can find out later in the programme.
0:42:43 > 0:42:46Well, it's been a while since we last saw those purchases.
0:42:46 > 0:42:49Have they been racing through the work?
0:42:49 > 0:42:51Or has the whole project ground to a complete halt?
0:42:51 > 0:42:52Let's go back and find out.
0:42:56 > 0:42:59Time to catch up with an exciting development
0:42:59 > 0:43:02in East Horsley, Surrey, where a dilapidated cottage
0:43:02 > 0:43:06on a third of an acre plot had cost Brian and Dennis 680,000...
0:43:07 > 0:43:11..a whopping £180,000 more than the guide price.
0:43:13 > 0:43:14What was the attraction?
0:43:14 > 0:43:18So, with this plot, it doesn't come with planning permission,
0:43:18 > 0:43:21you've got a little cottage sitting there, which is all very nice
0:43:21 > 0:43:23and pretty, but what are you going to do?
0:43:23 > 0:43:26We're going to try and work the local authority on planning.
0:43:26 > 0:43:32Hopefully, we will achieve four townhouses on three storeys.
0:43:32 > 0:43:35And possibly a unit into the rear, which would be good.
0:43:35 > 0:43:38- That would be a bonus for us. - Is that coming down?
0:43:38 > 0:43:40It will come down eventually, yes.
0:43:40 > 0:43:42A lot was hanging on the planning permission
0:43:42 > 0:43:45so at the sharp end was architect Marek.
0:43:45 > 0:43:48What is your vision for this site?
0:43:48 > 0:43:53We're hoping to keep the townhouses the same height as that block there.
0:43:53 > 0:43:55So you get a nice swoop round.
0:43:55 > 0:43:58And you have got quite a large site with a big
0:43:58 > 0:44:02plot of land at the back there, which is ideal for a house.
0:44:02 > 0:44:06These were ambitious plans, but they had an even bigger vision,
0:44:06 > 0:44:10to buy an adjacent piece of land and build as many as eight units.
0:44:11 > 0:44:13But would they get planning permission in this
0:44:13 > 0:44:15picturesque and affluent village?
0:44:15 > 0:44:18Two years later, we're back.
0:44:37 > 0:44:39It's a very large building site.
0:44:39 > 0:44:41And while nothing is complete, you can
0:44:41 > 0:44:43see it beginning to take shape.
0:44:43 > 0:44:47I'm sure you're expecting some soft closing kitchen doors rather
0:44:47 > 0:44:51than cement mixers but it turns out that old bugbear planning,
0:44:51 > 0:44:53well, it took a year.
0:44:53 > 0:44:55Quite a difficult process.
0:44:55 > 0:44:57Had to go back in two or three times and use planning consultants.
0:44:57 > 0:45:00We had a couple of objections from the local parish council,
0:45:00 > 0:45:03which we overcame with a couple of meetings with them.
0:45:04 > 0:45:06Not only did Dennis and Brian have to reassure
0:45:06 > 0:45:08the local parish council,
0:45:08 > 0:45:10they also had to deal with the rail company,
0:45:10 > 0:45:12who owned a covenant on some parts of the land,
0:45:12 > 0:45:16meaning these also had to be bought by Dennis and Brian.
0:45:17 > 0:45:20Still, once planning permission was eventually granted,
0:45:20 > 0:45:23it was full steam ahead.
0:45:23 > 0:45:26Although when an opportunity arose to buy neighbouring land,
0:45:26 > 0:45:30the business partners didn't hesitate, as Dennis explains.
0:45:32 > 0:45:35Well, as you know, we bought the site at the auction.
0:45:35 > 0:45:38And then we managed to acquire the site next door,
0:45:38 > 0:45:40which already had planning for three small houses.
0:45:41 > 0:45:44So time to count on those fingers.
0:45:44 > 0:45:47Now that's two sets of semi-detached houses on the site
0:45:47 > 0:45:49of the old cottage,
0:45:49 > 0:45:52a detached five-bed house on the triangular patch of land
0:45:52 > 0:45:57at the rear and a terrace of three houses, using the new bit of land.
0:45:57 > 0:46:00Eight houses in total. All good.
0:46:00 > 0:46:05But since they are far from finished, well, what's the story?
0:46:05 > 0:46:07The site at the moment, we've got
0:46:07 > 0:46:11the timber frames on several of the units erected now.
0:46:11 > 0:46:13Three are in the dry with the roofs on.
0:46:13 > 0:46:18Windows should be on the first three within the next couple of weeks.
0:46:18 > 0:46:21The four on the front of the site should be
0:46:21 > 0:46:24probably in the dry within the next three weeks as well.
0:46:24 > 0:46:26Then we're going to start the foundations on the detached unit
0:46:26 > 0:46:29at the back within the next two weeks.
0:46:29 > 0:46:31Ready really for plastering.
0:46:31 > 0:46:35We're first fixed on the first three now, which is cabling and plumbing.
0:46:36 > 0:46:38And it doesn't end there.
0:46:38 > 0:46:43We've got a gentleman next door and he wants to sell us his house.
0:46:43 > 0:46:46Obviously, for more than it's worth because
0:46:46 > 0:46:49we're going for planning permission for a bungalow in the back garden.
0:46:51 > 0:46:54Well, don't stop counting on those fingers - they've not finished yet.
0:46:55 > 0:46:59So, as well as a five-bed detached house yet to be built,
0:46:59 > 0:47:02plus three terraced houses on newly purchased land
0:47:02 > 0:47:05and the four three-bed semi-detached houses at the front of the plot,
0:47:05 > 0:47:09Brian and Dennis may also build a bungalow.
0:47:11 > 0:47:14All this extra work and land must have made quite
0:47:14 > 0:47:18a dent in their original budget of 1.2 million.
0:47:20 > 0:47:25We think the total overall build costs will be about 1.8 million.
0:47:25 > 0:47:27That should see us out and everything finished.
0:47:27 > 0:47:29But that doesn't include the new bungalow,
0:47:29 > 0:47:30if we get planning for that one.
0:47:32 > 0:47:35Brian and Dennis hope that all the work will be completed in
0:47:35 > 0:47:38six to eight months, making this a three-year project and,
0:47:38 > 0:47:44while their total outlay of 3.1 million sounds a lot, they are eager
0:47:44 > 0:47:48to sell and already have a long waiting list of prospective buyers.
0:47:50 > 0:47:54And the possible profit they could make, well, it's mind-boggling.
0:47:56 > 0:47:59We've asked two local property experts to don their hard hats
0:47:59 > 0:48:00and take a look.
0:48:02 > 0:48:04I think it's worked out as a great development.
0:48:04 > 0:48:07When they originally bought the old cottage,
0:48:07 > 0:48:10it was quite limited as to what they could do but the acquisition
0:48:10 > 0:48:14of the extra land at the back has really transformed the site.
0:48:14 > 0:48:17The houses that they are building are much needed in the village
0:48:17 > 0:48:21because they are smaller units and there is a great demand for them.
0:48:21 > 0:48:25The demand for these houses is going to be right across the spectra,
0:48:25 > 0:48:29from people downsizing to young families.
0:48:29 > 0:48:33Because of the location here, just 100 yards from the station,
0:48:33 > 0:48:36they're going to appeal to a wide raft of people,
0:48:36 > 0:48:40including people that may even be buying for investment.
0:48:43 > 0:48:45All sounding very positive.
0:48:45 > 0:48:48So what could Brian and Dennis expect for the planned properties?
0:48:50 > 0:48:53For the terrace of three houses, we've got and end-of-terrace
0:48:53 > 0:48:57two-bedroom house, which we think will be in the region of £625,000.
0:48:57 > 0:49:00The centre terrace probably £600,000.
0:49:00 > 0:49:04And the end-of-terrace at the other end is a three-bedroom house,
0:49:04 > 0:49:07which we think is going to be about 675,000.
0:49:07 > 0:49:10There are two pairs of semi-detached houses.
0:49:10 > 0:49:12They're slightly larger, over three storey.
0:49:12 > 0:49:14We would expect to achieve,
0:49:14 > 0:49:18in today's market, something in the region of £675,000.
0:49:18 > 0:49:20We also have one detached house.
0:49:20 > 0:49:24We expect that to be in the region of £1.2 million.
0:49:27 > 0:49:29With both agents valuing the properties in the same
0:49:29 > 0:49:33ballpark area, even excluding the possible bungalow,
0:49:33 > 0:49:35these are some serious numbers...
0:49:36 > 0:49:40..with a total of the lot coming in at around 5.8 million.
0:49:41 > 0:49:43Wow!
0:49:43 > 0:49:47With a total spend of 3.1 million, that would give Brian and Dennis
0:49:47 > 0:49:53a profit of an utterly amazing 2.7 million, minus taxes and expenses.
0:49:54 > 0:49:57Have you run out of fingers to count on yet? I have.
0:49:58 > 0:50:01It's pretty much what we thought in the market today.
0:50:01 > 0:50:05It's a lot more than we thought when we first started building them.
0:50:05 > 0:50:10We're pleased that that's the sort of valuation that they've given us.
0:50:11 > 0:50:13Yeah, I think it's a good valuation.
0:50:13 > 0:50:17In the market today we expected house prices to start creeping up again
0:50:17 > 0:50:21so it's a good price for the houses and a good location,
0:50:21 > 0:50:23good price for them.
0:50:24 > 0:50:27We'll definitely be back to see this project when it's complete.
0:50:27 > 0:50:30It's not difficult to see what this experienced team
0:50:30 > 0:50:33enjoy about this type of project.
0:50:33 > 0:50:36We like building new houses because we're creating something.
0:50:36 > 0:50:38It's somebody's dream.
0:50:38 > 0:50:40It's one of the biggest purchases you make in your life.
0:50:40 > 0:50:42If people walk in and they look at it
0:50:42 > 0:50:46and see the finish that we leave and go "Wow" then we've succeeded.
0:50:46 > 0:50:49If we make a profit on the way, so much the better.
0:50:53 > 0:50:56Yes, not every property development will make millions.
0:50:56 > 0:51:00But they are about making the home of someone's dreams.
0:51:00 > 0:51:06So, did Raul and Luke manage to do that here in Abercwmboi in Wales?
0:51:06 > 0:51:10They bought this two bed mid-terrace for 27,500 and were hoping for
0:51:10 > 0:51:12a quick turnaround and fast sale,
0:51:12 > 0:51:16although they had a couple of things to iron out first.
0:51:17 > 0:51:20Obviously, profit depends on how much you're going to spend
0:51:20 > 0:51:21doing it up.
0:51:21 > 0:51:23What's the budget for that?
0:51:23 > 0:51:26Luke says four to six I say three to five!
0:51:26 > 0:51:29And they've broken one of Hammer's golden rules -
0:51:29 > 0:51:31viewing a property before you buy it.
0:51:33 > 0:51:37Talk me through the auction process. What was going on in your brain?
0:51:37 > 0:51:38Nothing.
0:51:38 > 0:51:41When this property came at a certain price, it got stuck on that
0:51:41 > 0:51:44and the auctioneer said if anybody would want to put a 500 up.
0:51:44 > 0:51:46So I thought, maybe let's try this.
0:51:46 > 0:51:50It's not a very high price for a property.
0:51:50 > 0:51:52Something we could work on with.
0:51:52 > 0:51:54In the area that we know.
0:51:54 > 0:51:56Despite breaking the rules,
0:51:56 > 0:51:59Raul and Luke had been lucky in finding a property
0:51:59 > 0:52:03with plenty of hidden potential, despite signs of damp in some areas.
0:52:06 > 0:52:10Just under five weeks later, we've returned to see how they've got on.
0:52:24 > 0:52:27A simple renovation has meant keeping costs down
0:52:27 > 0:52:31and maximising the potential for profit in an area where
0:52:31 > 0:52:33properties have a definite ceiling price.
0:52:39 > 0:52:43In the master bedroom, any signs of damp have been dealt with
0:52:43 > 0:52:46and the neutral colour scheme that runs throughout both bedrooms
0:52:46 > 0:52:50and the new bathroom will appeal to buyers and investors.
0:52:58 > 0:53:03Outside, the garden is unfinished but it's looking a lot better
0:53:03 > 0:53:05and its potential is obvious to see.
0:53:07 > 0:53:10The interesting basement room is still undergoing work
0:53:10 > 0:53:14so we couldn't have a look but the whole house is looking smarter,
0:53:14 > 0:53:18brighter and far more inviting whilst also fitting nicely
0:53:18 > 0:53:19into the area.
0:53:21 > 0:53:24However, when it came to doing the work, there was
0:53:24 > 0:53:26a significant change of plan.
0:53:26 > 0:53:29My role was to fund the project.
0:53:29 > 0:53:32We'd initially thought that Luke would be doing
0:53:32 > 0:53:35the work in the house and we were going to split the profits
0:53:35 > 0:53:38but Luke picked up another job so Luke hasn't worked on this
0:53:38 > 0:53:42but that's not to suggest that our relationship finishes here.
0:53:42 > 0:53:44We are looking at something else where hopefully,
0:53:44 > 0:53:47the both of us can go in together and do that property up.
0:53:47 > 0:53:49When we went to the auction, I thought
0:53:49 > 0:53:53I'd do a lot of the work but because I'm so busy with my business
0:53:53 > 0:53:55and my work,
0:53:55 > 0:53:58I've just given advice.
0:53:58 > 0:54:00I've left it to the main man to take control.
0:54:02 > 0:54:06Raul, a complete refurbishment novice, has in fact project managed
0:54:06 > 0:54:09the whole thing, getting in qualified tradespeople
0:54:09 > 0:54:11to do the jobs.
0:54:11 > 0:54:14So these walls of the room we are in had at least three
0:54:14 > 0:54:17coatings of wallpaper on them.
0:54:17 > 0:54:19It took us a long while to get rid of them.
0:54:19 > 0:54:22Some of the wall had to be replastered, painted.
0:54:22 > 0:54:25We had new carpets in this room.
0:54:25 > 0:54:28Upstairs, we did tiles in the bathroom.
0:54:28 > 0:54:30We changed the vinyl on the bathroom floor.
0:54:30 > 0:54:34We had to plaster the front room upstairs in the main bedroom.
0:54:35 > 0:54:40Got new carpets there as well. All painted. New doors in the house.
0:54:40 > 0:54:44In the kitchen we had a new cooker, new vinyl, painted the kitchen.
0:54:44 > 0:54:47Garden, we got rid of all the bushes in the garden.
0:54:47 > 0:54:49The garden was too overgrown.
0:54:49 > 0:54:52We had chippings on the garden. Membrane on the garden.
0:54:52 > 0:54:56The extended bit of the garden has been cleared as well.
0:54:56 > 0:54:59Possibly a car could be parked there.
0:54:59 > 0:55:01I have pretty much come here every day to check
0:55:01 > 0:55:02how the work is going,
0:55:02 > 0:55:04providing materials, advising on them,
0:55:04 > 0:55:06the sort of colour choice we wanted.
0:55:06 > 0:55:08My daughter has come and helped me as well.
0:55:08 > 0:55:13She selected the bathroom floor for us. That's pretty much it.
0:55:15 > 0:55:19Oof! Quite a list. But Raul has kept a tight grip on that budget.
0:55:20 > 0:55:24Initially, he and Luke differed on what would need to be spent,
0:55:24 > 0:55:28with Raul thinking 3,000 to 5,000 and Luke 4,000 to 6,000.
0:55:30 > 0:55:35Raul has kept a very tight grip on the budget, spending only 2,500.
0:55:35 > 0:55:39But it's not quite finished yet so how has the timescale worked out?
0:55:40 > 0:55:44We were hoping to finish the project within four to six weeks
0:55:44 > 0:55:45and we've managed to do that.
0:55:45 > 0:55:47We did start a bit late
0:55:47 > 0:55:50but it took only about four weeks to finish the project.
0:55:52 > 0:55:55Raul has taken some local advice and hopes to sell.
0:55:55 > 0:56:00And with a modest final outlay of just £30,000,
0:56:00 > 0:56:03the potential for profit is looking good.
0:56:03 > 0:56:06But will two local property experts agree?
0:56:08 > 0:56:11This is my first visit to the property.
0:56:11 > 0:56:13I can see that some works have been done.
0:56:13 > 0:56:15I can see the bathroom, the carpeting,
0:56:15 > 0:56:16the painting has been done.
0:56:16 > 0:56:20It hasn't had a new kitchen but obviously it just needed
0:56:20 > 0:56:21a bit of a lick and a paint,
0:56:21 > 0:56:26and it looks fine as it is for either resale or for renting.
0:56:26 > 0:56:28There is a demand for investment properties.
0:56:28 > 0:56:31We have a lot of investors on the books looking for rental
0:56:31 > 0:56:34properties and also the first-time buyer market has increased
0:56:34 > 0:56:36over the last six months.
0:56:36 > 0:56:40That's reassuring news. So let's consider rental potential first.
0:56:40 > 0:56:42If the owner were to rent the property,
0:56:42 > 0:56:48we would expect to achieve between £350 and £375 per calendar month.
0:56:48 > 0:56:51I would be looking at renting at between £375
0:56:51 > 0:56:53and £400 per calendar month.
0:56:57 > 0:57:01So, taking an average of £375 per calendar month would mean
0:57:01 > 0:57:04a potential yield of a whopping 15%.
0:57:06 > 0:57:10But Raul is set on selling for the time being.
0:57:10 > 0:57:13If the owner were to put the property on the market as it stands,
0:57:13 > 0:57:14we would market the property
0:57:14 > 0:57:19at £45,000 and expect to achieve between £40,000 and £42,000.
0:57:19 > 0:57:21If I was going to market this property,
0:57:21 > 0:57:25I would be looking at putting it onto the market for about £47,000
0:57:25 > 0:57:29and achieving somewhere in the region of £44,000 maybe £45,000.
0:57:29 > 0:57:32LUKE: Property's only going to go up and up and up, I hope.
0:57:32 > 0:57:34So, yeah, I'm happy.
0:57:34 > 0:57:38These are the sort of figures I was expecting. I can live with that.
0:57:39 > 0:57:41Glad to hear it.
0:57:41 > 0:57:44With a top estimate of £45,000 that would mean a pre-tax profit
0:57:44 > 0:57:46of £15,000.
0:57:46 > 0:57:47Not too shabby, I'd say.
0:57:50 > 0:57:52So, will they be heading back to the auctions?
0:57:54 > 0:57:56Definitely looking to do another project
0:57:56 > 0:57:58and trying to do it fairly quickly.
0:57:58 > 0:58:00We'll be at the auctions next time they're on.
0:58:03 > 0:58:07Well, the world of property is never static or boring.
0:58:07 > 0:58:09You really do need to know what you're doing
0:58:09 > 0:58:11so hopefully we can help with that.
0:58:11 > 0:58:13Join us next time for more cautionary tales
0:58:13 > 0:58:16and success stories on Homes Under The Hammer.
0:58:16 > 0:58:18- We'll see- you then. Goodbye!- Bye!