0:00:02 > 0:00:03Hello and welcome to the programme.
0:00:03 > 0:00:05With the property market changing all the time,
0:00:05 > 0:00:09this could be a really interesting time to invest in property.
0:00:09 > 0:00:12But how do you make sure that you don't get priced out of the market?
0:00:12 > 0:00:15Well, one way you can buy at a really good price is to head
0:00:15 > 0:00:17to your local auction.
0:00:42 > 0:00:45Well, buying under the hammer can be a really great way
0:00:45 > 0:00:46to get into the property market.
0:00:46 > 0:00:50Yes, lots of us are heading to auction houses all around the UK.
0:00:50 > 0:00:53So let's see what properties were bagged on today's show.
0:00:54 > 0:00:59First up, in Guildford, Surrey, I can't believe my ears!
0:00:59 > 0:01:02What? Six weeks and 15 grand?
0:01:02 > 0:01:04I know, I know.
0:01:04 > 0:01:07And in the town of Ripley in Derbyshire, I'm afraid
0:01:07 > 0:01:08I'm all fingers and thumbs.
0:01:11 > 0:01:13Oh!
0:01:13 > 0:01:14Right.
0:01:14 > 0:01:17Whilst in Walderslade, Chatham,
0:01:17 > 0:01:20a property is really getting up my nose.
0:01:20 > 0:01:22And the smell...
0:01:22 > 0:01:24..worse, if anything.
0:01:26 > 0:01:28All these properties have been sold at auction.
0:01:28 > 0:01:31We'll find out who bought them and what they paid for them
0:01:31 > 0:01:33when they went under the hammer.
0:01:33 > 0:01:34All done.
0:01:41 > 0:01:44Guildford, the county town of Surrey, is a historic area that
0:01:44 > 0:01:47I know well, but it's not often that I'm here with
0:01:47 > 0:01:51Homes Under The Hammer, so for me, this is a real treat.
0:01:51 > 0:01:55It has a lovely cobbled high street and is set along the River Wey.
0:01:55 > 0:01:57It also has great train links,
0:01:57 > 0:02:01which take you into central London in only 36 minutes.
0:02:01 > 0:02:04Well, the good news is this street is only a five-minute walk
0:02:04 > 0:02:08from the station, which makes it a popular place to be.
0:02:08 > 0:02:11So come on, what can you buy at auction for a guide
0:02:11 > 0:02:16price of £125,000, then? Well, a one-bedroom flat, that's what.
0:02:16 > 0:02:20I want to tell you a one-bed flat around here sells for
0:02:20 > 0:02:23up to £230,000 on this street.
0:02:23 > 0:02:26It could be good value for money,
0:02:26 > 0:02:29or might we find a lot of work to do inside?
0:02:29 > 0:02:31Not so good. Let's go in.
0:02:34 > 0:02:38The adjacent flat looks like it's already had some work done,
0:02:38 > 0:02:40but I've got a feeling the one I'm here to see will be
0:02:40 > 0:02:44a little different, judging by its rather overgrown appearance.
0:02:46 > 0:02:48Interesting.
0:02:48 > 0:02:51So this room is in complete contrast with the hallway,
0:02:51 > 0:02:55which seems freshly painted and nice and modern and contemporary.
0:02:55 > 0:02:59And as you can see in here, there's a lot of work that needs to be done.
0:02:59 > 0:03:01You've got plaster hanging off the ceiling,
0:03:01 > 0:03:03it's just all a bit grubby, you need new carpets.
0:03:03 > 0:03:05But it's quite a grand room.
0:03:05 > 0:03:07It's a great size, you've got little picture rails.
0:03:07 > 0:03:11You can imagine what a room like this would be like once renovated -
0:03:11 > 0:03:14you could put some nice doors on.
0:03:14 > 0:03:17But through here is, I'm presuming, the lounge.
0:03:17 > 0:03:19So that means that room there is the bedroom
0:03:19 > 0:03:23and I don't like the idea of walking straight into your bedroom area,
0:03:23 > 0:03:27so I think I would create a little corridor, or...
0:03:27 > 0:03:29You can see this was the original doorway.
0:03:29 > 0:03:31Do you want to reinstate that?
0:03:31 > 0:03:34I'm not sure. Maybe it was covered up
0:03:34 > 0:03:37because a sofa would have run along the back wall, here.
0:03:37 > 0:03:41So I'm still thinking a little corridor probably is the way to go.
0:03:41 > 0:03:43You've got the kitchen there. Bathroom out the back.
0:03:43 > 0:03:45Hold on a minute!
0:03:45 > 0:03:48That's a rather large window. Look!
0:03:48 > 0:03:51I'm not quite sure how you're supposed to get out
0:03:51 > 0:03:55to this outside space. I wonder what this monstrosity is?
0:03:55 > 0:03:58I'm going to find out, hang fire.
0:04:00 > 0:04:03So unless you're going to jump out of the window,
0:04:03 > 0:04:05there is no direct access outside.
0:04:05 > 0:04:07Very bizarre.
0:04:07 > 0:04:09Bear with me, I am nearly there.
0:04:11 > 0:04:13So I've gone back through the front door,
0:04:13 > 0:04:17along the internal hallway to my little bit of outside space
0:04:17 > 0:04:20and it really is a little bit of outside space.
0:04:20 > 0:04:26It's a backyard and it consists of this and...erm, well, that.
0:04:26 > 0:04:28So not much at all,
0:04:28 > 0:04:31definitely get this old monstrosity down, it's in the way
0:04:31 > 0:04:34and it just looks awful and you would certainly need to remember
0:04:34 > 0:04:39to put a door here so you get direct access from the inside out.
0:04:39 > 0:04:41And then, well, you've got somewhere to hang your washing,
0:04:41 > 0:04:44park your bike and have a glass of wine.
0:04:47 > 0:04:50But as well as sorting out that outside space,
0:04:50 > 0:04:53there is plenty of work to be done on the inside.
0:04:55 > 0:04:58OK, it needs a new boiler, central heating,
0:04:58 > 0:05:02a new kitchen and I would say most definitely a rewire.
0:05:03 > 0:05:07I've also noticed some worrying signs of damp,
0:05:07 > 0:05:09which should set alarm bells ringing.
0:05:09 > 0:05:11You'll need to get that checked out by a specialist.
0:05:13 > 0:05:16And back to those layout issues.
0:05:16 > 0:05:19Well, it's never ideal to walk through your kitchen
0:05:19 > 0:05:23into the bathroom, but in this case, I don't think there's much you could
0:05:23 > 0:05:29do to change that and it is expected in a Victorian property like this.
0:05:29 > 0:05:33There's just one more thing and that's out the front.
0:05:33 > 0:05:36One of the first things I would do to this flat would be
0:05:36 > 0:05:39to head out here and give this hedge a haircut.
0:05:39 > 0:05:41Look, it's far too overgrown
0:05:41 > 0:05:44and it's blocking the sunlight from flooding into here.
0:05:44 > 0:05:47While you're out here, as well, these windows need replacing
0:05:47 > 0:05:50and I would recommend trimming back this ivy, as well.
0:05:50 > 0:05:53So, a trip to a housing beautician for a bit of a facelift.
0:06:01 > 0:06:03And on that note, it's time to cast some light
0:06:03 > 0:06:06on the property market in this area.
0:06:06 > 0:06:09And who better to enlighten us than a local property agent?
0:06:11 > 0:06:13It definitely needs quite a bit of work.
0:06:13 > 0:06:16The property suffers from damping issues
0:06:16 > 0:06:18as well as the obvious replastering.
0:06:18 > 0:06:21Decorating, it's going to need new kitchen things,
0:06:21 > 0:06:22moving around quite a lot.
0:06:22 > 0:06:24Probably new windows, as well,
0:06:24 > 0:06:27so there's going to be quite a bit of money spent here.
0:06:29 > 0:06:33This flat is in prime rental and first-time buyer territory.
0:06:33 > 0:06:35So how much could it be worth?
0:06:35 > 0:06:37I think that once this property has been renovated,
0:06:37 > 0:06:41you could achieve in the region of £220,000-£230,000.
0:06:43 > 0:06:44And what about rental?
0:06:44 > 0:06:48I think once the flat's renovated, you could achieve in rental value
0:06:48 > 0:06:51approximately £895 per calendar month.
0:06:52 > 0:06:54You can improve the condition of a property,
0:06:54 > 0:06:57but you can't change where it is.
0:06:57 > 0:07:00Location is key and in this case, well,
0:07:00 > 0:07:02it's a big fat tick in the box.
0:07:02 > 0:07:04Yes, the flat does need a lot of work,
0:07:04 > 0:07:07but that can all be done in good time.
0:07:07 > 0:07:09So who was sold by this street?
0:07:09 > 0:07:11Well, we went to the auction. Let's find out.
0:07:11 > 0:07:14It's a ground-floor flat requiring upgrading.
0:07:14 > 0:07:17Anyone want to start me off? 150, we're not going to go below 150.
0:07:17 > 0:07:19It's got to be worth that, all day long.
0:07:19 > 0:07:23150 on the phone, 150,000 I've got.
0:07:23 > 0:07:25155 at the back and 160...
0:07:27 > 0:07:28160.
0:07:28 > 0:07:30161, 162...
0:07:33 > 0:07:35165, OK, he knows value.
0:07:35 > 0:07:37166 in the back?
0:07:37 > 0:07:40Looking for 166. 166, new spot on my left.
0:07:40 > 0:07:44167, 168, 169, 170, madam?
0:07:44 > 0:07:46171...
0:07:46 > 0:07:47171, new spot.
0:07:47 > 0:07:50172, 173, 174,
0:07:50 > 0:07:54175, 176, 177...
0:07:54 > 0:07:57Nope. 176,000 on my left.
0:07:57 > 0:07:58177 anywhere else?
0:08:00 > 0:08:03If not, 176,000 for the first,
0:08:03 > 0:08:05176,000 for the second,
0:08:05 > 0:08:09176,000 for the third and final time...
0:08:09 > 0:08:11We all done?
0:08:11 > 0:08:13Sold 176, well bought, madam.
0:08:16 > 0:08:19And the successful bidder was local web designer
0:08:19 > 0:08:23and mum-of-two Catherine, who lives in nearby Farnham.
0:08:23 > 0:08:26I joined her back at the flat to find out why she bought this place.
0:08:28 > 0:08:31# Big new, big new beginning... #
0:08:33 > 0:08:35- Congratulations, Catherine. - Thank you.
0:08:35 > 0:08:39Is this a project for yourself to, sort of, get your teeth into?
0:08:39 > 0:08:42Yes, I'm hoping it will be the start of many more,
0:08:42 > 0:08:44but I feel confident I can manage this
0:08:44 > 0:08:46and, yeah, see where it takes me.
0:08:46 > 0:08:49So have you done any developing at all, before?
0:08:49 > 0:08:53Refurbed our family home and we have done a new build, as well,
0:08:53 > 0:08:58so we, sort of, learnt on the job and know the pitfalls and, yeah,
0:08:58 > 0:08:59feel confident taking this on.
0:08:59 > 0:09:02Is this to flip and put straight back onto the open market,
0:09:02 > 0:09:04or are you just doing it because you love it
0:09:04 > 0:09:06and you've got the property bug, now?
0:09:06 > 0:09:08I want to rent it,
0:09:08 > 0:09:10I don't want to sell it on just yet
0:09:10 > 0:09:13and really just see where it takes us. And also,
0:09:13 > 0:09:17I do, sort of, enjoy the remodelling and refreshing
0:09:17 > 0:09:20and starting with something that looks like this and at the end
0:09:20 > 0:09:23having something that looks much nicer
0:09:23 > 0:09:25and you feel as though you've created something.
0:09:26 > 0:09:28I know from my own experience that property developing
0:09:28 > 0:09:32is a good career to fit around raising your kids.
0:09:32 > 0:09:35But Catherine is running a web design business as well,
0:09:35 > 0:09:40so is property developing really going to fit in for her?
0:09:40 > 0:09:42This fits in perfectly because you are, you know,
0:09:42 > 0:09:45in charge of your own timetable and of your diary,
0:09:45 > 0:09:49so I can still do the school runs and still be there for them after school.
0:09:49 > 0:09:51So what are you going to do with this place?
0:09:51 > 0:09:55Obviously, it's in quite a poor state so just get everything out.
0:09:55 > 0:09:58At the moment, the front door comes in to the bedroom,
0:09:58 > 0:10:00so we need to put a little hallway in.
0:10:00 > 0:10:03The bathroom needs doing, kitchen needs doing,
0:10:03 > 0:10:06perhaps a door to the outdoor area.
0:10:06 > 0:10:08So, where the window is, which is sort of collapsing,
0:10:08 > 0:10:10that needs to come out anyway,
0:10:10 > 0:10:13so I think that's the perfect place to actually replace that window
0:10:13 > 0:10:16with a door and if you remove the lean-to,
0:10:16 > 0:10:18it will take you straight out.
0:10:18 > 0:10:21You know, you can put your bike out there, it's safe...
0:10:21 > 0:10:23And your washing...
0:10:23 > 0:10:25There is room for a barbecue if you really wanted one,
0:10:25 > 0:10:28or just to let some air in on a summer's day.
0:10:29 > 0:10:32# I beg your pardon
0:10:33 > 0:10:36# I never promised you a rose garden... #
0:10:39 > 0:10:41So the plan for the garden is set,
0:10:41 > 0:10:44but inside, not everything is smelling of roses.
0:10:44 > 0:10:47Now, I have spotted some damp in that corner over there.
0:10:47 > 0:10:49Is that rising damp coming from underneath
0:10:49 > 0:10:52or is it just condensation, what do you think?
0:10:52 > 0:10:55We suspect it's just from the lean-to and where it's leaked.
0:10:55 > 0:10:57There's some leaks coming from outside,
0:10:57 > 0:11:00so, fingers crossed, that's the extent of it.
0:11:00 > 0:11:02How much money are you going to spend here?
0:11:02 > 0:11:07Erm, I'm hoping to have it all done under 15.
0:11:07 > 0:11:09- Under 15,000?- Yeah.
0:11:09 > 0:11:11So you need to put in central heating,
0:11:11 > 0:11:15- you need to think about a boiler, a kitchen, a bathroom...- Mm-hmm.
0:11:15 > 0:11:16The list is quite a long list.
0:11:16 > 0:11:19So, come on, what's your timescale?
0:11:19 > 0:11:21I'm hoping...
0:11:21 > 0:11:22Erm...
0:11:22 > 0:11:24- Six weeks.- What?
0:11:24 > 0:11:27- Six weeks and 15 grand? - I know, I know,
0:11:27 > 0:11:31but I think it will be more like eight to ten.
0:11:31 > 0:11:36eight to ten weeks and maybe more like £20,000-£25,000, do you think?
0:11:36 > 0:11:40- No, I'm confident, I'm confident on the 15.- Catherine, good luck.
0:11:40 > 0:11:42I cannot wait to see what it's like when it's done,
0:11:42 > 0:11:44I'm sure it's going to be fabulous, well done.
0:11:44 > 0:11:46- Thank you.- Thank you.
0:11:46 > 0:11:48I think it's great that Catherine now has the time
0:11:48 > 0:11:51to make a start on her new property career.
0:11:51 > 0:11:55However, her budget is small and her timescale is tight,
0:11:55 > 0:11:59so it all needs to go to plan if she's going to stick to them.
0:11:59 > 0:12:02Let's hope she doesn't unearth anything too costly
0:12:02 > 0:12:04once she gets started.
0:12:04 > 0:12:06You can join me later in the programme to see how she gets on.
0:12:13 > 0:12:16To Derbyshire now and one of its many picturesque towns.
0:12:16 > 0:12:20Ripley grew from a small village during the Industrial Revolution
0:12:20 > 0:12:24to a booming town, which really made its mark on the UK.
0:12:24 > 0:12:27Rich in minerals such as iron and coal,
0:12:27 > 0:12:31local companies grew from this and led them to making landmark
0:12:31 > 0:12:34monuments such as the famous roof of St Pancras.
0:12:34 > 0:12:36Not bad for a little town that started off
0:12:36 > 0:12:39as just a little farming village.
0:12:39 > 0:12:42Well, the great thing about auctions is you never know quite
0:12:42 > 0:12:46what you're going to find and all sorts of things go under the hammer.
0:12:46 > 0:12:50So what was on offer for a guide price of £12,000-plus
0:12:50 > 0:12:52on this particular occasion?
0:12:52 > 0:12:55Well, it's certainly one of those lots with potential.
0:12:55 > 0:12:58It's a detached brick-built building,
0:12:58 > 0:13:049.5 by 4.5 metres with a useful adjacent covered area
0:13:04 > 0:13:09and courtyard, suitable for a wide variety of potential uses.
0:13:09 > 0:13:10Fantastic.
0:13:11 > 0:13:14# I'm fantastic... #
0:13:15 > 0:13:18The site lies down this lane, nestled behind
0:13:18 > 0:13:22a former public house, currently being converted into flats,
0:13:22 > 0:13:25and in front of land that was previously an industrial site.
0:13:25 > 0:13:29A strange location, really, with a residential in front of it
0:13:29 > 0:13:30and commercial behind it.
0:13:30 > 0:13:32But what's inside it?
0:13:32 > 0:13:35# I'm fantastic... #
0:13:35 > 0:13:38Well, it soon becomes apparent that what you've got here
0:13:38 > 0:13:44is actually the outbuildings from what was a pub and obviously
0:13:44 > 0:13:47in recent times, it was used to store all the paraphernalia
0:13:47 > 0:13:50from the pub - we've got old pool tables,
0:13:50 > 0:13:53there's a football table there, all sorts of bits and pieces.
0:13:54 > 0:13:57That's the main brick-built unit there
0:13:57 > 0:14:01and then this is the little courtyard and covered area.
0:14:01 > 0:14:03You've got quite a lot of space, though.
0:14:03 > 0:14:07I mean, I have seen houses built on much less space than this.
0:14:07 > 0:14:09But at the moment...
0:14:09 > 0:14:11These opportunities are fairly limited.
0:14:13 > 0:14:17# I don't want to play those guessing games
0:14:17 > 0:14:21- # Please don't make me play those... - Guessing games
0:14:21 > 0:14:22# Oh... #
0:14:22 > 0:14:24The time for playing games here is now over,
0:14:24 > 0:14:28but the name of the game is to work out what it could be used for
0:14:28 > 0:14:31and what you would get planning permission for.
0:14:33 > 0:14:34Oh!
0:14:34 > 0:14:36Right. Well, clearly,
0:14:36 > 0:14:39something that you're going to have to invest in is a good few skips
0:14:39 > 0:14:45to get rid of this stuff, or maybe stick it on an auction website.
0:14:45 > 0:14:47People buy all sorts of stuff, don't they?
0:14:47 > 0:14:49But more seriously,
0:14:49 > 0:14:52this building itself has only got one layer of bricks,
0:14:52 > 0:14:55so if you're looking at actually using this
0:14:55 > 0:14:58as a foundations or the, sort of, shell for a building,
0:14:58 > 0:15:01you're going to have to invest in some more insulation
0:15:01 > 0:15:03and also a damp-proofing of some sort,
0:15:03 > 0:15:05because single-skin brick ain't going to work.
0:15:05 > 0:15:09Good news, though, it looks like you've got electricity laid on
0:15:09 > 0:15:10and that is always going to be something
0:15:10 > 0:15:12which is going to be expensive.
0:15:12 > 0:15:16Your services are big part of any...
0:15:16 > 0:15:18renovation/construction project.
0:15:18 > 0:15:19Oh, dear.
0:15:21 > 0:15:24Maybe I was a bit premature in my excitement!
0:15:24 > 0:15:26Looks like that is your electricity supply,
0:15:26 > 0:15:28probably went to the old pub.
0:15:28 > 0:15:30So you're going to have to have electricity laid on,
0:15:30 > 0:15:33probably gas as well, although it looks like there is
0:15:33 > 0:15:37some kind of drainage, sewage or whatever close by.
0:15:37 > 0:15:40So good news and bad news. It's basically things
0:15:40 > 0:15:43you're to going to have to factor into any budget.
0:15:45 > 0:15:48Splitting the single supply that went from the old pub to here
0:15:48 > 0:15:50isn't as simple as it may sound.
0:15:52 > 0:15:56As a separate site, it will need an independent supply,
0:15:56 > 0:15:59so new cables directly from the junction box, a new meter
0:15:59 > 0:16:01and new account need to be created.
0:16:03 > 0:16:07Separate accounts and supply provided for gas and water, too,
0:16:07 > 0:16:10and drainage and sewage need to be able to accommodate
0:16:10 > 0:16:13potentially higher use than they were designed for.
0:16:13 > 0:16:16And you know all of that is going to cost time and money.
0:16:19 > 0:16:24So what are your options for this little auction lot, then?
0:16:24 > 0:16:26Well, for a start... Important to note,
0:16:26 > 0:16:33it doesn't have planning permission and that is, therefore, a risk.
0:16:33 > 0:16:35You might not ever get planning permission.
0:16:35 > 0:16:38If you were to apply for it, what would you apply for?
0:16:38 > 0:16:41Well, I mean, there's definitely enough space here
0:16:41 > 0:16:45to build a house, or maybe a little bungalow or a little cottage...
0:16:45 > 0:16:48you've got the access road there, so that's good news...
0:16:48 > 0:16:52Or you could keep it as it is, rent it out as garages, perhaps?
0:16:52 > 0:16:55Erm, somewhere to store stuff?
0:16:57 > 0:17:00At the kind of guide price it is, it's one of those ones,
0:17:00 > 0:17:03it just could be worth taking a punt on it.
0:17:04 > 0:17:08There are so many options for this unassuming scrap of land.
0:17:08 > 0:17:09I like its quirkiness,
0:17:09 > 0:17:12but what would be the best thing to do with it?
0:17:12 > 0:17:14We asked an estate agent along to give us
0:17:14 > 0:17:16the benefit of his local expertise.
0:17:16 > 0:17:19Is this place worth a punt at £12,000?
0:17:19 > 0:17:21This is a mixed residential-commercial area,
0:17:21 > 0:17:23so there will always be a business that just needs a little
0:17:23 > 0:17:26bit of storage just for that extra little bit of space.
0:17:26 > 0:17:29I think in terms of renting the property, if you were
0:17:29 > 0:17:30to rent it out to somebody,
0:17:30 > 0:17:32you'd probably get in the region of £100 a month.
0:17:32 > 0:17:34OK, a straightforward option,
0:17:34 > 0:17:38but what if you did want to build a residential property?
0:17:38 > 0:17:40You'd look to build a one-bedroom property on here.
0:17:40 > 0:17:44The cost of doing that would be roughly in the region of £50,000,
0:17:44 > 0:17:47I would have thought, something of that nature.
0:17:47 > 0:17:49Whether you converted it or demolished and built new,
0:17:49 > 0:17:53I'd expect it to be worth in the region of £90,000-£100,000.
0:17:54 > 0:18:00That's a potential profit of £38,000 based on the guide price of £12,000.
0:18:00 > 0:18:04And with a possible rental income of £475 per calendar month,
0:18:04 > 0:18:06it all adds up quite nicely.
0:18:06 > 0:18:10That's if you can get planning permission, otherwise, even just
0:18:10 > 0:18:13renting it out as storage still gives you a 10% yield
0:18:13 > 0:18:14on the guide price.
0:18:18 > 0:18:22Well, it's certainly an interesting auction lot with loads of potential.
0:18:22 > 0:18:26Let's see who was bowled over by it at the auction.
0:18:31 > 0:18:34It's a lock-up yard, ladies and gentlemen, lot 29.
0:18:34 > 0:18:3610 to start me.
0:18:36 > 0:18:3810? Who's got 8,000? Put it into the bidding.
0:18:38 > 0:18:39He has, thank you.
0:18:39 > 0:18:41£8,000 is the opening bid.
0:18:41 > 0:18:43£8,500 seated.
0:18:43 > 0:18:458,500, 9,000...
0:18:45 > 0:18:49At £9,000, 9,500, at £10,000...
0:18:49 > 0:18:5010,500.
0:18:50 > 0:18:52At 10,500,
0:18:52 > 0:18:55at 11, at 11,500...
0:18:55 > 0:18:5612,000.
0:18:56 > 0:18:59At 12,500, either of you?
0:18:59 > 0:19:01At 12,500... 13,000,
0:19:01 > 0:19:04at 13,000... 500 again?
0:19:04 > 0:19:06500, 13,500...
0:19:06 > 0:19:0714, sir?
0:19:09 > 0:19:12£13,500 once,
0:19:12 > 0:19:15twice, third time.
0:19:15 > 0:19:17Sold at £13,500, thank you.
0:19:18 > 0:19:21Hidden in the crowd were Joe and his wife, Angie,
0:19:21 > 0:19:26the successful bidders getting the property for £13,500.
0:19:26 > 0:19:30However, we caught up with Joe to find out about his plans.
0:19:30 > 0:19:33- Joe, good to meet you.- Yeah, good to meet you, Martin.- Congratulations.
0:19:33 > 0:19:37- Thank you.- Tell me why you wanted to buy this place.
0:19:37 > 0:19:40I'm looking to, basically, start a new business
0:19:40 > 0:19:43- and I needed some premises. - Oh, right, what's the business?
0:19:43 > 0:19:45I'm going to go into...
0:19:45 > 0:19:48I'm calling it garden services, but it's mowing, grass cutting...
0:19:48 > 0:19:50So you need somewhere for your equipment and stuff like that?
0:19:50 > 0:19:53Somewhere for my equipment to store, yes.
0:19:53 > 0:19:56- So you've literally bought it to store your stuff?- Yes.
0:19:56 > 0:19:57All of it? I mean...
0:19:57 > 0:20:01No, when I came... When I actually came to look at the viewing of it,
0:20:01 > 0:20:04I believed it was one building.
0:20:04 > 0:20:07It was only when I got here and looked at it that
0:20:07 > 0:20:10I realised that there is a dividing wall between the two.
0:20:10 > 0:20:13So the smaller area of the two is going to suit me fine.
0:20:13 > 0:20:16Right, and what will you do with the other bit?
0:20:16 > 0:20:20Well, the other part of it, I'm hoping to potentially rent it out,
0:20:20 > 0:20:22so it could be for storage and distribution
0:20:22 > 0:20:25or it could be for what they call a light-industry workshop.
0:20:25 > 0:20:28- OK.- If I could get it for light industrial
0:20:28 > 0:20:31and somebody was interested in a little workshop,
0:20:31 > 0:20:34I'm thinking that a one-man band, maybe a craftsman,
0:20:34 > 0:20:35somebody like that...
0:20:35 > 0:20:37An art studio or something like that?
0:20:37 > 0:20:39An art studio...
0:20:39 > 0:20:42I even actually thought maybe if something like
0:20:42 > 0:20:44the railway enthusiasts who've got, you know,
0:20:44 > 0:20:46model railway lines and things like that...
0:20:46 > 0:20:47Oh, wow.
0:20:47 > 0:20:50- That would be fun, wouldn't it? - Yeah, it would be nice.
0:20:50 > 0:20:54- I'd hope to get round about up to £90 per week.- Right.
0:20:54 > 0:20:59And that would then make the return on investment very good.
0:21:00 > 0:21:01Smart thinking.
0:21:01 > 0:21:05Use of land is categorised in planning regulations
0:21:05 > 0:21:08and light industrial work applies to industry
0:21:08 > 0:21:10suitable for a residential area,
0:21:10 > 0:21:14something not too noisy, dirty, smelly, that sort of thing.
0:21:14 > 0:21:18And given the pub is going to be flats, that all seems to make sense.
0:21:18 > 0:21:21However, there are more issues about services to think about,
0:21:21 > 0:21:23like that electricity supply.
0:21:24 > 0:21:26I have looked into it
0:21:26 > 0:21:28and I do have somebody coming in next week
0:21:28 > 0:21:31to begin to give me a price on that.
0:21:31 > 0:21:33The prices can be horrendous
0:21:33 > 0:21:36depending on how far they've got to come.
0:21:36 > 0:21:40We are hoping that we can use a defunct cable
0:21:40 > 0:21:43that runs down the drive.
0:21:43 > 0:21:44I hope.
0:21:44 > 0:21:47If not, it's a matter of digging round about 23 metres...
0:21:47 > 0:21:49Ooh, ouch.
0:21:49 > 0:21:50So what's the budget?
0:21:50 > 0:21:53Budget is... I've set a £3,000 budget.
0:21:53 > 0:21:56OK, that's not including the electrics, or is it?
0:21:56 > 0:21:58- That includes the electrics...- OK.
0:21:58 > 0:22:02..and I've also put a contingency of £1,000 to one side.
0:22:02 > 0:22:09And of the £3,000, at least £1,500 will go to the external electrics.
0:22:09 > 0:22:14I'm allowing £100 for the meter to be installed internally
0:22:14 > 0:22:18and round about £500 for the internal electrics.
0:22:18 > 0:22:21- Right.- So they're the big spends.
0:22:21 > 0:22:26# Oh, we're gonna rock down to Electric Avenue
0:22:26 > 0:22:28# And then we'll take it higher... #
0:22:30 > 0:22:32I hope he's right about that budget,
0:22:32 > 0:22:35because although the electricity seems like the main expense,
0:22:35 > 0:22:39I'm guessing there's going to be quite a bill for skips,
0:22:39 > 0:22:42then there's the guttering, the roof tiles, the paint
0:22:42 > 0:22:45and the inside. Even though he'll be doing a lot of it himself,
0:22:45 > 0:22:47it's tight.
0:22:47 > 0:22:50And then there is time, because Joe will be in the hands
0:22:50 > 0:22:54of the electricity company and he reckons that could take six weeks.
0:22:55 > 0:22:59- Are you excited about what it means, actually?- Yes, I am.
0:22:59 > 0:23:04For some time, over years I've been thinking it'd be nice
0:23:04 > 0:23:08to have a bit of storage space or somewhere that's your own.
0:23:08 > 0:23:11I wouldn't call it a man cave or anything like that,
0:23:11 > 0:23:13but something down that route.
0:23:13 > 0:23:17So, yeah, I am excited and I'm looking forward to, I guess,
0:23:17 > 0:23:22clearing everything out and seeing the space in its entirety.
0:23:22 > 0:23:23Good. Well, congratulations.
0:23:23 > 0:23:26Good luck with it and we look forward with interest to seeing
0:23:26 > 0:23:28- what you do with it. - Thanks very much, thank you.
0:23:28 > 0:23:29- Nice to meet you.- And you.
0:23:29 > 0:23:33Well, it seems this place is absolutely ideal for Joe
0:23:33 > 0:23:35and his new business venture.
0:23:35 > 0:23:41Of course, the big issue is getting those electrics in and I'm worried.
0:23:41 > 0:23:43That budget...
0:23:43 > 0:23:46It's not enough. How will it all turn out?
0:23:46 > 0:23:48You can find out later in the show.
0:23:50 > 0:23:54Still to come, a substantial property in Walderslade, Chatham
0:23:54 > 0:23:56has a rather obvious problem.
0:23:56 > 0:23:59There's not supposed to be water pouring in through there.
0:24:01 > 0:24:04And in Ripley, Derbyshire, Joe's wife is spoiled.
0:24:04 > 0:24:07Cleaning all the initial rubbish out was a full day's job
0:24:07 > 0:24:10and I brought the wife down as well for a bit of a holiday.
0:24:14 > 0:24:18Well, it looks like holiday weather in Guildford in Surrey.
0:24:18 > 0:24:19We return now
0:24:19 > 0:24:24to catch up with web designer Catherine, who paid £176,000
0:24:24 > 0:24:27for this one-bedroom flat close to the town centre.
0:24:30 > 0:24:34A great location, but the property was in a bit of a state.
0:24:35 > 0:24:38Well, I think it needs stripping right back.
0:24:38 > 0:24:42Obviously it's in quite a poor state, so just get everything out.
0:24:46 > 0:24:49This was a first-time auction purchase for Catherine
0:24:49 > 0:24:53and she was hoping it would be a launch pad to a new career.
0:24:53 > 0:24:57I am hoping it will be the start of many more, but I feel confident
0:24:57 > 0:25:00I can manage this and, yeah, see where it takes me.
0:25:02 > 0:25:05With a long list of improvements to be made,
0:25:05 > 0:25:09her ambitious timescale and budget came as a bit of a surprise to me.
0:25:10 > 0:25:14- What? Six weeks and 15 grand? - I know, I know.
0:25:15 > 0:25:18I reckoned 25 grand was nearer the mark,
0:25:18 > 0:25:20but has Catherine proved me wrong?
0:25:26 > 0:25:31The flat is barely recognisable from what there was here before.
0:25:31 > 0:25:33Creating that little corridor at the front has made
0:25:33 > 0:25:36all the difference to the feel of the place.
0:25:36 > 0:25:41Also, those extra doors will help keep out the winter drafts.
0:25:41 > 0:25:44The new windows at the front look really, really smart
0:25:44 > 0:25:47and I'm glad to see the hedge has been tamed,
0:25:47 > 0:25:51letting daylight flood into this lovely front room.
0:25:54 > 0:25:56In the lounge, the escape hatch has been
0:25:56 > 0:26:00replaced by a door, allowing direct access to the back.
0:26:01 > 0:26:04And the lean-to has been removed.
0:26:04 > 0:26:07Actually, this is a really good space now!
0:26:09 > 0:26:12At the back of the flat, that odd assortment of units
0:26:12 > 0:26:13and cupboards have been stripped out
0:26:13 > 0:26:17and replaced by a lovely new kitchen and next to that,
0:26:17 > 0:26:21the new bathroom is modern, it's fresh and it's clean.
0:26:24 > 0:26:26The flat has been rewired and re-plumbed,
0:26:26 > 0:26:29there's a new central heating system, new flooring,
0:26:29 > 0:26:35new double glazing and everything has been replastered and decorated.
0:26:35 > 0:26:37Were there any challenges along the way?
0:26:37 > 0:26:42I think the biggest challenge was the flooring. In certain parts,
0:26:42 > 0:26:45particularly in this room, it was very uneven, the joists
0:26:45 > 0:26:48we needed to actually strip back and then raise
0:26:48 > 0:26:50some of the joists just to get it level
0:26:50 > 0:26:52so that it would take the floor.
0:26:52 > 0:26:55And we hadn't seen that, we just assumed it had nice floorboards
0:26:55 > 0:26:57that would be OK, but it took a bit of work.
0:26:57 > 0:27:01And then we had a slight damp patch underneath the window,
0:27:01 > 0:27:03it was really to do with the lean-to that was there.
0:27:03 > 0:27:07There was water running in, there was a pipe that was leaking,
0:27:07 > 0:27:09so we've replaced all of the pipe work.
0:27:09 > 0:27:12The lean-to has gone and the problem's gone away,
0:27:12 > 0:27:13so it's all dried out.
0:27:18 > 0:27:20And now the moment of truth.
0:27:20 > 0:27:22Catherine had budgeted for £15,000,
0:27:22 > 0:27:26which I thought was a big underestimation.
0:27:26 > 0:27:30Come on now, Catherine, spill the beans.
0:27:30 > 0:27:33We came in at £15,600..
0:27:34 > 0:27:37So, yes. £600 over, I'm pleased with that.
0:27:38 > 0:27:42Seriously, only £600 over?
0:27:42 > 0:27:45I was expecting £6,000 over!
0:27:45 > 0:27:48OK, next time I'm in Guildford, Catherine,
0:27:48 > 0:27:51you can buy me a slice of humble pie.
0:27:51 > 0:27:54And given we're back just after her six-week timescale,
0:27:54 > 0:27:56it looks like she was right on that, too.
0:27:56 > 0:27:59The builders that we used were great,
0:27:59 > 0:28:03they were absolutely dedicated to the cause.
0:28:03 > 0:28:06I think we're a couple of weeks ahead of ourselves
0:28:06 > 0:28:11and just because they were here every day, wanting to get it finished.
0:28:11 > 0:28:12I can't fault them, they were brilliant.
0:28:17 > 0:28:20OK, OK. Make that two slices of humble pie.
0:28:23 > 0:28:26Catherine has developed this flat to put on the rental market,
0:28:26 > 0:28:29so we asked two local property experts to come
0:28:29 > 0:28:32and assess the quality of work and to give us
0:28:32 > 0:28:35some idea of its worth, given the current market conditions.
0:28:37 > 0:28:39First impressions are very good, actually.
0:28:39 > 0:28:43They've done it very well, nice, neat, tidy flat.
0:28:43 > 0:28:46They've paid attention to a few of the small details,
0:28:46 > 0:28:49particularly, I think, the sash windows.
0:28:49 > 0:28:53That's unusual because they are very expensive to put in, but buyers
0:28:53 > 0:28:57look for small things like that and that, effectively,
0:28:57 > 0:28:58will increase the price.
0:28:58 > 0:29:02Well, I think it's been refurbished to a very high standard,
0:29:02 > 0:29:03It's beautifully presented,
0:29:03 > 0:29:06a particularly great location...
0:29:06 > 0:29:11The flooring and the general decor is very saleable and very rentable.
0:29:13 > 0:29:15It's an upbeat verdict from the experts.
0:29:15 > 0:29:18So if the property was to be put up for sale,
0:29:18 > 0:29:20how much would it be worth?
0:29:20 > 0:29:25If everything was to swing in your favour, 210. £210,000.
0:29:25 > 0:29:30£220,000-£230,000.
0:29:32 > 0:29:37Catherine has spent £191,600 on the purchase
0:29:37 > 0:29:39and the refurbishment of this flat.
0:29:39 > 0:29:41A sale at the upper evaluation would bring in
0:29:41 > 0:29:48a pre-tax profit of £38,400, minus the usual fees.
0:29:48 > 0:29:51But her eye is set firmly on the rental market.
0:29:51 > 0:29:54The rentable value I would expect to achieve
0:29:54 > 0:30:00on this property would be £875 per calendar month.
0:30:00 > 0:30:05The rental value, I would put at around £1,000 per calendar month.
0:30:06 > 0:30:11Somewhere in between would be good. Obviously £1,000 would be lovely.
0:30:11 > 0:30:13Yeah, no, that's very pleasing.
0:30:16 > 0:30:20A rental of £1,000 per calendar month would represent
0:30:20 > 0:30:23a return on her investment of just over 6%.
0:30:23 > 0:30:26I'd say this has been a successful venture
0:30:26 > 0:30:28into the world of property development.
0:30:28 > 0:30:32Will she be visiting the property auctions again any time soon?
0:30:32 > 0:30:34I'd definitely do it again.
0:30:34 > 0:30:36The biggest challenge is just finding the next project.
0:30:40 > 0:30:44I'm in Walderslade, a suburb of Chatham in Kent.
0:30:44 > 0:30:46The name actually means "wood in a valley",
0:30:46 > 0:30:50so it's not surprising to learn that the whole area was once wooded,
0:30:50 > 0:30:54until the housing development of the 1900s came along.
0:30:54 > 0:30:58But it is a really popular place to live, with good commuter links,
0:30:58 > 0:31:02rail links, shops, etc. And do you know what?
0:31:02 > 0:31:04Still looks pretty leafy, to me.
0:31:07 > 0:31:09Lying just ten minutes' drive away from Chatham
0:31:09 > 0:31:13and with easy access on to the surrounding motorway network,
0:31:13 > 0:31:16it's a popular, family-orientated place.
0:31:17 > 0:31:19So it'll probably come as no surprise
0:31:19 > 0:31:21that prices are a little more expensive here
0:31:21 > 0:31:26than in neighbouring Chatham, due to its pretty, rural setting.
0:31:27 > 0:31:31So, we like the area and when the property that was up for auction
0:31:31 > 0:31:33was described as "substantial",
0:31:33 > 0:31:36with a guide price of just £200,000-£210,000,
0:31:36 > 0:31:40you've got to think, "Whoa! This could be brilliant."
0:31:40 > 0:31:45Behind this, rather, mishmash of trees and shrubs
0:31:45 > 0:31:49is the property itself and substantial it most certainly is.
0:31:49 > 0:31:52Two doors to go into. Which one should we choose?
0:31:52 > 0:31:54Eenie, meenie, miney, mo... That one.
0:31:55 > 0:31:58The two doors actually access two separate properties.
0:31:58 > 0:32:01So, what will we find behind the first one?
0:32:02 > 0:32:05Well, the first thing is that the house has obviously been
0:32:05 > 0:32:08divided into two flats. The door there leading upstairs to,
0:32:08 > 0:32:10unsurprisingly, the upstairs flat,
0:32:10 > 0:32:12this door leading into the downstairs flat.
0:32:15 > 0:32:17Well done, Mr Logical. What have we got?
0:32:17 > 0:32:19The first thing is, the moment you walk through this door,
0:32:19 > 0:32:22this overwhelming smell of damp.
0:32:22 > 0:32:25And it is dark and dingy and not very good.
0:32:25 > 0:32:26However, the size is good.
0:32:26 > 0:32:29Look at that living room, there, with the lovely parquet floor
0:32:29 > 0:32:32and then through to the kitchen.
0:32:34 > 0:32:38Well, it needs a bit of work, but it's not a bad-sized space...
0:32:38 > 0:32:42But clearly, serious things going wrong.
0:32:42 > 0:32:44Shall we tempt fate? Shall we?
0:32:45 > 0:32:48I should have brought my umbrella!
0:32:48 > 0:32:49Yeah, look at that. Not...
0:32:50 > 0:32:52..good at all.
0:32:52 > 0:32:54Right.
0:32:54 > 0:32:56Bit of work to be done, then.
0:32:56 > 0:32:58# I've got a dirty, dirty feeling
0:32:59 > 0:33:01# Dirty dealing's going on... #
0:33:03 > 0:33:06And this is going to take a lot.
0:33:06 > 0:33:10But the pluses are, that good-sized lounge leads to a decent-sized
0:33:10 > 0:33:11bedroom and bathroom.
0:33:13 > 0:33:17Double-glazed windows look out over a garden. That's another plus.
0:33:18 > 0:33:20Judging by the amount of mail lying here,
0:33:20 > 0:33:23the flats have been empty for some time.
0:33:23 > 0:33:25Will the upstairs one be as bad?
0:33:28 > 0:33:32So, up to the first floor flat and the smell?
0:33:34 > 0:33:36Worse, if anything.
0:33:36 > 0:33:38Not good, at all.
0:33:38 > 0:33:40What is good is the size. Like downstairs,
0:33:40 > 0:33:45a really nice-sized living room, here and through to the kitchen.
0:33:45 > 0:33:48Now, it's, kind of, a kitchen with...
0:33:49 > 0:33:50..two sides.
0:33:50 > 0:33:55This side here. Well, you know, old units, but nothing too dramatic.
0:33:55 > 0:33:56This side, however...
0:33:58 > 0:34:00Not good.
0:34:00 > 0:34:03There's not supposed to be water pouring in through there.
0:34:03 > 0:34:07Clearly a problem with the roof or whatever's above there.
0:34:07 > 0:34:09Water pouring in, probably damaging the timbers up there,
0:34:09 > 0:34:12going through the floor. It's really not good.
0:34:12 > 0:34:16So, into your renovation budget you now have to factor redoing,
0:34:16 > 0:34:21probably, the roof and also some carpentry, I would suggest.
0:34:21 > 0:34:24But, you know, as a shell to work with, it's still pretty good.
0:34:24 > 0:34:26Let's carry on exploring.
0:34:29 > 0:34:32The bedroom is definitely in the pink.
0:34:33 > 0:34:37This room has a window out on to a, sort of, roof terrace.
0:34:37 > 0:34:41Could that be the source of damp for downstairs? I'll come back to that.
0:34:41 > 0:34:43As for the bathroom, erm...
0:34:43 > 0:34:47I don't think I've ever seen a bath wrapped in carpet, before.
0:34:47 > 0:34:51Definitely don't want to see it again. The carpet has to go.
0:34:51 > 0:34:57Outside, the exterior looks pretty shoddy and that's not good.
0:34:57 > 0:35:00So, some worrying cracks at the front of the property,
0:35:00 > 0:35:03there, that you definitely want to have checked out by a professional.
0:35:03 > 0:35:06But I've come to the back of the property,
0:35:06 > 0:35:10to try and see what is causing all that damp.
0:35:10 > 0:35:12And from here, sure enough,
0:35:12 > 0:35:16look at the state of both the exterior walls
0:35:16 > 0:35:20and also, there, two flat roofs that are obviously letting water.
0:35:20 > 0:35:23Now, when it comes to restoring a house like this, you want to start,
0:35:23 > 0:35:24literally, top-down.
0:35:24 > 0:35:27Sort out the roof first, give the property a chance to dry out
0:35:27 > 0:35:30and then get on with the rest of the stuff.
0:35:30 > 0:35:32Talking of which, let's take a look next door.
0:35:33 > 0:35:36You'd nearly forgotten about the second half
0:35:36 > 0:35:38of this substantial property, hadn't you?
0:35:38 > 0:35:42The right-hand side of this lot is a three-bed semi.
0:35:44 > 0:35:46And... Sniff, sniff...
0:35:46 > 0:35:50I'm pleased to report that this half of the property smells much better.
0:35:50 > 0:35:54In fact, the whole air of neglect that permeates next door
0:35:54 > 0:35:56has evaporated here.
0:35:56 > 0:35:59Apart from this good-sized lounge, there is a dated kitchen
0:35:59 > 0:36:02and lean-to, which I reckon has got to join
0:36:02 > 0:36:05next door's bathroom carpet in the skip.
0:36:07 > 0:36:10One thing that could be a negative is what is outside
0:36:10 > 0:36:13the lounge window - a school.
0:36:13 > 0:36:16Unless you have a child attending or you're out all day,
0:36:16 > 0:36:17the noise could be an issue.
0:36:19 > 0:36:22The dated, but well-maintained, theme continues upstairs
0:36:22 > 0:36:24with three bedrooms...
0:36:26 > 0:36:27..a bathroom...
0:36:29 > 0:36:30..and a separate loo.
0:36:32 > 0:36:35There is double glazing throughout and a newish boiler.
0:36:35 > 0:36:36What's not to like?
0:36:38 > 0:36:41This is a lot of property for a guide price
0:36:41 > 0:36:43of just £200,000-£210,000.
0:36:44 > 0:36:48It's time to find out what local agent makes of it all.
0:36:48 > 0:36:50There are lots of options for this property.
0:36:50 > 0:36:54You could have it as one big detached house, you could have it
0:36:54 > 0:36:57as two individual semi-detached houses or you could convert it
0:36:57 > 0:36:59into four individual flats.
0:36:59 > 0:37:03However, what I would suggest would be leaving it
0:37:03 > 0:37:08as the original lay-out, as two flats and one semi-detached house.
0:37:08 > 0:37:10I think I would agree.
0:37:10 > 0:37:13Converting these properties would be expensive
0:37:13 > 0:37:18and there is demand in the area for both flats and family homes,
0:37:18 > 0:37:23which would make this property ideal and ripe for investment.
0:37:23 > 0:37:26But let's talk values, first.
0:37:26 > 0:37:28Once this property has been renovated,
0:37:28 > 0:37:30I would say the three-bedroom semi-detached property
0:37:30 > 0:37:36would fetch in the region of £220,000-£230,000
0:37:36 > 0:37:39and each individual flat would be worth in the region
0:37:39 > 0:37:43of around £110,000-£115,000.
0:37:43 > 0:37:45And with rental popular in the area,
0:37:45 > 0:37:48what could be expected on that front?
0:37:48 > 0:37:51The three-bedroom semi would rent in the region
0:37:51 > 0:37:56of £900-£950 per calendar month.
0:37:56 > 0:38:00You would also get, for the individual flats,
0:38:00 > 0:38:03between £500 and £550 per calendar month.
0:38:04 > 0:38:07Well, lots of opportunities for this place.
0:38:07 > 0:38:09I like the lay-out pretty much as it is
0:38:09 > 0:38:11and it could be a really solid investment,
0:38:11 > 0:38:14but don't underestimate the amount of money it is going to cost
0:38:14 > 0:38:17to put it right. Who wasn't put off?
0:38:17 > 0:38:20Let's find out, when it went under the hammer.
0:38:20 > 0:38:23Semi-detached house and two flats, all needing improvement.
0:38:23 > 0:38:25Developer's dream, I'd have thought.
0:38:25 > 0:38:30Start me where you will, good-sized plot, 180? 180? 180, do I say?
0:38:30 > 0:38:32180, 180, I'm on the way.
0:38:32 > 0:38:33190, I am bid.
0:38:33 > 0:38:36190, 200. 200, if you like.
0:38:36 > 0:38:39195 I've got on my right, 200, if you like...
0:38:39 > 0:38:40200, I am bid,
0:38:40 > 0:38:42205, now, if you like.
0:38:42 > 0:38:45With the lot proving popular, we leave it there
0:38:45 > 0:38:47and rejoin at 305,000.
0:38:49 > 0:38:52305, I am looking for, 305.
0:38:52 > 0:38:54307, I've got, 310...
0:38:54 > 0:38:57312? No, definitely not.
0:38:57 > 0:39:00At 310,000 in the front row, then, for the first time...
0:39:00 > 0:39:02310,000 for the second time...
0:39:02 > 0:39:05Third and final time, at 310,000 in the front row.
0:39:05 > 0:39:06Make no mistake, all done.
0:39:06 > 0:39:09£310,000.
0:39:10 > 0:39:14The successful bid, which was £100,000 over the guide price,
0:39:14 > 0:39:17belonged to Sidcup-based Robin.
0:39:17 > 0:39:19Buying the property with his two sisters,
0:39:19 > 0:39:23who will be silent partners, Robin has a background
0:39:23 > 0:39:25in new-build developments.
0:39:25 > 0:39:27I met him back at the property to find out more.
0:39:30 > 0:39:33- Robin, very good to meet you.- Yes, you too.- Congratulations.- Thank you.
0:39:33 > 0:39:35So you paid quite a bit more than the guide price.
0:39:35 > 0:39:39Why did you want this property so much?
0:39:39 > 0:39:42I think, once this place is done, it will achieve
0:39:42 > 0:39:44a figure that we're hoping it will achieve.
0:39:44 > 0:39:46Which is?
0:39:46 > 0:39:50- Around 420-430. - So tell me, why did you buy it?
0:39:50 > 0:39:52This has been bought with my sisters
0:39:52 > 0:39:54and we have a portfolio of properties,
0:39:54 > 0:39:58but they're all apartments in London,
0:39:58 > 0:40:00all off-plan new build.
0:40:00 > 0:40:02The reason why we did it is because it is difficult
0:40:02 > 0:40:06to get off-plan in London, now, at a good price, so...
0:40:08 > 0:40:13It seemed a natural course of events for us to move into auction property.
0:40:13 > 0:40:16And was it that, sort of, unusual configuration,
0:40:16 > 0:40:19the fact that you've got the house and the two apartments,
0:40:19 > 0:40:22a lot of property and options... Was that what really appealed?
0:40:22 > 0:40:26Yes, absolutely. The apartments are quite a good size.
0:40:26 > 0:40:28You know, it's very hard to find one-bed apartments of that size,
0:40:28 > 0:40:30modern apartments, anyway, nowadays.
0:40:30 > 0:40:34And they will have gardens, as well which is quite unusual.
0:40:34 > 0:40:37And the house, it's a good size, itself, so we thought,
0:40:37 > 0:40:39"OK, there's money to be made, here."
0:40:41 > 0:40:45There might well be, but going from off-plan new builds
0:40:45 > 0:40:48to property renovation is a bit of a leap.
0:40:48 > 0:40:51Robin has converted a couple of commercial premises before,
0:40:51 > 0:40:54but a project this size is all new territory,
0:40:54 > 0:40:57although Robin does have a secret weapon.
0:41:00 > 0:41:02I've got a contractor.
0:41:02 > 0:41:07He's worked for me on a conversion that I've just recently done.
0:41:07 > 0:41:08The contractor, Paul,
0:41:08 > 0:41:11- he's done an excellent job in a short period of time.- Right.
0:41:11 > 0:41:16We work very well together and it just seemed a perfect marriage.
0:41:16 > 0:41:18Great. So, has he seen it yet?
0:41:18 > 0:41:20He has, he came with us
0:41:20 > 0:41:23when we viewed it, initially, before going to the auction.
0:41:23 > 0:41:26We got an idea from him as to what it'll cost to do it up.
0:41:26 > 0:41:31- And what did he say? - Approximately 40,000.- OK, to do both?
0:41:31 > 0:41:34- To do all three, everything. - A bit of a deal, really.
0:41:34 > 0:41:36It's a really good deal,
0:41:36 > 0:41:39but with Paul, I've always got a good deal from him.
0:41:39 > 0:41:42Well, 40 grand would be a great deal for the amount of work
0:41:42 > 0:41:45needed, and even though Robin has a builder he trusts,
0:41:45 > 0:41:48that seems like a tall order.
0:41:48 > 0:41:51Robin plans to keep the flats and house and have them
0:41:51 > 0:41:55done up for resale, but he is prepared to rent, if necessary.
0:41:55 > 0:41:58But before that, there is a lot of work to be done,
0:41:58 > 0:42:00especially with that roof issue.
0:42:00 > 0:42:02What has Paul had to say about that?
0:42:03 > 0:42:06That's the first port of call, to get the roof sorted
0:42:06 > 0:42:09and stop the leaking of the water coming through.
0:42:09 > 0:42:13- The roof is, generally, in a fairly good condition.- Good.
0:42:14 > 0:42:15So, what's the timescale?
0:42:15 > 0:42:21Timescale, six months to have the properties ready for marketing
0:42:21 > 0:42:24and then, say, add another three months for selling.
0:42:24 > 0:42:26So, nine months in total, start to finish.
0:42:26 > 0:42:30- Well, listen, congratulations.- Thank you very much.- Good luck with it.
0:42:30 > 0:42:33- Thank you.- We look forward to seeing how you get on.- Absolutely.
0:42:33 > 0:42:36Well, a big project for Robin to take on
0:42:36 > 0:42:38as his first auction property.
0:42:38 > 0:42:40But hopefully, with the help of builder Paul,
0:42:40 > 0:42:43they will get it sorted out for that budget.
0:42:43 > 0:42:45You can find out later in the show.
0:42:48 > 0:42:50Martin, we've seen how one of the properties
0:42:50 > 0:42:52has panned out on today's show.
0:42:52 > 0:42:53What about the others?
0:42:53 > 0:42:56Yes, let's find out how the other two purchasers
0:42:56 > 0:42:57got on with their properties.
0:43:03 > 0:43:06First up is Derbyshire and the town of Ripley,
0:43:06 > 0:43:09where earlier I came across this detached brick building
0:43:09 > 0:43:13with covered courtyard which sat behind a former public house.
0:43:13 > 0:43:17It was a good size and consisted of two fair-sized units
0:43:17 > 0:43:21ripe for rental, apart from one potentially expensive problem.
0:43:21 > 0:43:24Looks like that is your electricity supply.
0:43:24 > 0:43:25Probably went to the old pub,
0:43:25 > 0:43:29so you have to have electricity laid on, probably gas, as well,
0:43:29 > 0:43:33although it looks like there is some kind of drainage,
0:43:33 > 0:43:37sewerage or whatever close by. So, good news and bad news.
0:43:37 > 0:43:42It's basically things you're going to have to factor in to any budget.
0:43:42 > 0:43:45Although at a guide price of just £12,000 plus,
0:43:45 > 0:43:48it was a property full of potential.
0:43:48 > 0:43:49Step up local man Joe,
0:43:49 > 0:43:54who for 13,500 had decided he could see that potential.
0:43:56 > 0:43:57He planned to use one unit
0:43:57 > 0:44:00for storage for his fledgling gardening business
0:44:00 > 0:44:02and the other would be rented out as a workshop,
0:44:02 > 0:44:06although the electrical problem hadn't escaped his attention.
0:44:07 > 0:44:09You're talking about putting electrics in there.
0:44:09 > 0:44:11Have you looked into the cost of that?
0:44:11 > 0:44:12It might not be cheap.
0:44:12 > 0:44:16We are hoping that we can use a defunct cable
0:44:16 > 0:44:19that runs down the drive
0:44:19 > 0:44:22and maybe the engineers can tap into that.
0:44:23 > 0:44:24I hope.
0:44:24 > 0:44:27If not, it's a matter of digging round about 23 metres of drive.
0:44:27 > 0:44:29Ooh! Ouch!
0:44:31 > 0:44:33Work of that nature would not be cheap,
0:44:33 > 0:44:39making Joe's already tight budget of £3,000 with a £1,000 contingency
0:44:39 > 0:44:41look even more strained.
0:44:43 > 0:44:46However, if he was going to rent out the second unit as a workshop,
0:44:46 > 0:44:49having the electricity was an absolute necessity.
0:44:50 > 0:44:52On top of that,
0:44:52 > 0:44:56never underestimate the cost of clearing out rubbish and junk.
0:44:56 > 0:44:59But Joe planned on doing the majority of the work himself
0:44:59 > 0:45:03on the former pub storage unit complete with skittle alley
0:45:03 > 0:45:05and his enthusiasm had bowled me over.
0:45:08 > 0:45:09Two and a half months later,
0:45:09 > 0:45:13we've returned to see if Joe's plans have come to fruition.
0:45:31 > 0:45:33This former shabby and forgotten space
0:45:33 > 0:45:36is now home to a modern and appealing workshop,
0:45:36 > 0:45:39complete with electricity and drainage,
0:45:39 > 0:45:41perfect for letting out.
0:45:42 > 0:45:45Lots of changes in here, as we've been looking at things.
0:45:45 > 0:45:47As we can see, we've got rid of all the junk
0:45:47 > 0:45:49out of the bottom of the place,
0:45:49 > 0:45:53we've replastered, re-boarded the ceiling,
0:45:53 > 0:45:54we've plastered the walls,
0:45:54 > 0:45:56new electrics in everywhere,
0:45:56 > 0:46:01painted it through, we've had an electric meter put in here,
0:46:01 > 0:46:04we've found the grate, the old horse grate,
0:46:04 > 0:46:05so all in all, we're very pleased
0:46:05 > 0:46:08with what we've done with this building.
0:46:08 > 0:46:11With the neighbouring unit's sole purpose to accommodate
0:46:11 > 0:46:14Joe's gardening equipment, work here was kept to a minimum,
0:46:14 > 0:46:17with just the floor being concreted
0:46:17 > 0:46:19and the doors being given a much-needed lick of paint.
0:46:23 > 0:46:27The entire space is looking tidier and fresher, but it's the story
0:46:27 > 0:46:32behind connecting that electricity supply that I'm most interested in.
0:46:32 > 0:46:36The major problem with this has been the electric supply.
0:46:36 > 0:46:41A whole raft of issues, that the supply itself was connected up
0:46:41 > 0:46:46when we dug it out, unfortunately it was found that for several reasons
0:46:46 > 0:46:52the supply wasn't live, which was due to it missing on the drawings.
0:46:52 > 0:46:54The utility company had to come back three weeks later
0:46:54 > 0:46:58and dig another hole on the pavement and reconnect again.
0:46:58 > 0:47:01We have done a lot more work than anticipated,
0:47:01 > 0:47:03and the reason for doing the additional work,
0:47:03 > 0:47:08which was the plastering and boarding, was that I had a couple of
0:47:08 > 0:47:10people I know come, and I said,
0:47:10 > 0:47:14"I'm going to open the doors and I want you to tell me, if you were
0:47:14 > 0:47:18"renting this, what would be the one thing you would say needs improving?"
0:47:18 > 0:47:22Both of them said, "Plaster the walls and board the ceiling."
0:47:22 > 0:47:24So, I thought that was good advice and,
0:47:24 > 0:47:28because we could factor it into the budget, we'd do it.
0:47:28 > 0:47:31Listening to what potential renters would expect is
0:47:31 > 0:47:34a really good idea, and, thankfully, the electrical work
0:47:34 > 0:47:41and all other work here came in at £3,000 - bang on Joe's budget.
0:47:41 > 0:47:44He also saved money by doing the majority of the work himself,
0:47:44 > 0:47:47although he did have a helper.
0:47:48 > 0:47:52Obviously, cleaning all the initial rubbish out was a full day's job
0:47:52 > 0:47:55and I brought the wife down, as well, for a bit of a holiday.
0:47:55 > 0:47:59But most days, I'd be down here for maybe an hour, two hours,
0:47:59 > 0:48:01sometimes, it would be all day.
0:48:01 > 0:48:05I just wanted to work together and really get it done, get it finished.
0:48:07 > 0:48:09Joe finished the work here in just four weeks
0:48:09 > 0:48:14and spent a total of £16,500 on the entire project.
0:48:17 > 0:48:20With a view to renting out the larger unit,
0:48:20 > 0:48:24we asked two local property agents for their opinions.
0:48:25 > 0:48:27The work that's been done is to a good standard
0:48:27 > 0:48:29and they've made the best of what was here.
0:48:29 > 0:48:31There's good demand for small starter units,
0:48:31 > 0:48:34particularly cottage industries,
0:48:34 > 0:48:36ideal for self-employed builders.
0:48:36 > 0:48:39The demand is fair at the moment, it's a smaller unit than
0:48:39 > 0:48:44the 1,000 square foot starter unit, so it's an ideally placed unit.
0:48:44 > 0:48:46Looks like Joe has unearthed a little gem here,
0:48:46 > 0:48:49but what about those all-important rental figures?
0:48:49 > 0:48:52The larger unit, we'd rent in the region of £150pcm
0:48:52 > 0:48:56and the smaller unit would be circa £50pcm.
0:48:56 > 0:48:58I would suggest the larger unit,
0:48:58 > 0:49:02if he was looking to offer it to the rental market, I would have
0:49:02 > 0:49:03thought you'd ask for a rent
0:49:03 > 0:49:08somewhere in the region of £150 to £200 a month.
0:49:08 > 0:49:12Collectively, if you were to offer the two, I would imagine you'd
0:49:12 > 0:49:15achieve somewhere in the region of maybe £280pcm for the two.
0:49:17 > 0:49:21So if Joe does achieve £150pcm for the larger unit,
0:49:21 > 0:49:25that would mean a yield of a very respectable 10%.
0:49:27 > 0:49:30And on those sort of figures, the payback over
0:49:30 > 0:49:33the project is going to be about five years.
0:49:33 > 0:49:37I think that's very good, so, yeah, very pleased with all of that.
0:49:37 > 0:49:39And so you should be, Joe!
0:49:39 > 0:49:41With a store for your thriving business
0:49:41 > 0:49:44and a rental income besides, this has been a sound investment,
0:49:44 > 0:49:48proving property doesn't have to be big to be profitable.
0:49:57 > 0:50:01We return now to Walderslade, near Chatham in Kent, where earlier
0:50:01 > 0:50:04I found this sizeable property,
0:50:04 > 0:50:08which was guided at £200,000 to £210,000.
0:50:08 > 0:50:12It'd been split into two, with one side comprising
0:50:12 > 0:50:17two one-bedroom flats and the other a three-bedroom family home.
0:50:17 > 0:50:22It was snapped up by Robin for £100,000 over that guide price.
0:50:22 > 0:50:26Robin, along with his two sisters, who are silent partners,
0:50:26 > 0:50:30have a small portfolio of off-plan new-build properties in London.
0:50:30 > 0:50:33And while he had done a little renovation before,
0:50:33 > 0:50:36this project represented a far greater challenge.
0:50:36 > 0:50:40Thankfully, though, Robin had come prepared.
0:50:40 > 0:50:43Got a contractor, Paul,
0:50:43 > 0:50:46- he's done an excellent job in a short period of time.- Right.
0:50:46 > 0:50:51We work very well together, it just seemed a perfect marriage.
0:50:51 > 0:50:54Well, this dynamic duo had a big job on their hands.
0:50:56 > 0:50:59With signs of damp running throughout the two flats
0:50:59 > 0:51:02and a three-bedroom house in need of complete overhaul,
0:51:02 > 0:51:06I was concerned that their budget of £40,000 wouldn't cover it.
0:51:09 > 0:51:13Five-and-a-half months later, we've returned to Walderslade to see
0:51:13 > 0:51:17how they've got on, and first up is the three-bedroomed house.
0:51:26 > 0:51:30What was once little more than a dreary lean-to is now
0:51:30 > 0:51:34a lovely extension, creating a modern and appealing kitchen/diner.
0:51:36 > 0:51:39We originally had a chimney breast,
0:51:39 > 0:51:43and there was also a den, kind of, thing on the corner.
0:51:43 > 0:51:47We've got rid of the chimney breast and this den thing,
0:51:47 > 0:51:51we've modernised it, throughout. This is now the dining area.
0:51:51 > 0:51:54I think this will appeal to young families with children,
0:51:54 > 0:51:58plenty of space for them to eat and do whatever.
0:51:59 > 0:52:04A beautifully-painted and recarpeted hallway, complete with
0:52:04 > 0:52:09a very handy downstairs WC leads into a transformed living room.
0:52:23 > 0:52:26The transformation continues upstairs,
0:52:26 > 0:52:29particularly into the bigger and brighter master bedroom.
0:52:35 > 0:52:38Originally, there was a wall here, so this was quite a small room.
0:52:38 > 0:52:40We've got rid of that wall.
0:52:40 > 0:52:44There used to be a small, dead-end hallway, we've put an en-suite here.
0:52:44 > 0:52:47This was originally part of the old bathroom.
0:52:47 > 0:52:50So this is now quite a large master bedroom.
0:52:50 > 0:52:54The two remaining bedrooms have been redecorated and recarpeted.
0:52:58 > 0:53:01With a brand-new bathroom suite completing the modern
0:53:01 > 0:53:03and clean feel that runs throughout this house.
0:53:05 > 0:53:09This has been a brilliantly thought-out project by Robin
0:53:09 > 0:53:10and his contractor Paul.
0:53:10 > 0:53:13However, it was always a game of two halves here,
0:53:13 > 0:53:16with the neighbouring flats particularly in need of restoration.
0:53:19 > 0:53:22The pair decided to concentrate solely on the house,
0:53:22 > 0:53:26and have barely started on the two flats,
0:53:26 > 0:53:30one of which they decided to turn into a two-bed.
0:53:30 > 0:53:34The house will be finished within the next seven to ten days roughly.
0:53:34 > 0:53:37As soon as they're done, we're going to put this house on the market
0:53:37 > 0:53:40and Paul will start on the flats.
0:53:40 > 0:53:41Paul's already, kind of, started.
0:53:41 > 0:53:45We envisage it'll be done within the next two to three months.
0:53:45 > 0:53:49And then the whole project will have reached its conclusion.
0:53:49 > 0:53:51First, a complete refurb and rewire,
0:53:51 > 0:53:53no central heating in there at the moment.
0:53:53 > 0:53:57New kitchens, bathrooms, turn the upstairs flat into
0:53:57 > 0:54:00a two-bedroom from a one-bedroom, but, yeah, everything will be new.
0:54:00 > 0:54:03The house has cost us approximately £20,000 to £22,000
0:54:03 > 0:54:06and the remaining budget is there for the flats,
0:54:06 > 0:54:09so at this moment, we don't know whether we're going to go over
0:54:09 > 0:54:13that budget, but we're hoping we'll stick pretty close to the 40k.
0:54:15 > 0:54:18Considering the level of finish to the house -
0:54:18 > 0:54:21not to mention the structural changes that have taken place -
0:54:21 > 0:54:26I think spending around £22,000 is pretty impressive.
0:54:26 > 0:54:30Since we last saw Robin, he's decided to sell all the properties
0:54:30 > 0:54:34once they are completed, but how has the transition from buying
0:54:34 > 0:54:38off-plan new builds to big project renovation gone?
0:54:38 > 0:54:42This is a lot more involved and, obviously, I'm looking to make
0:54:42 > 0:54:47a profit from this, so I'm constantly watching how things are progressing.
0:54:47 > 0:54:52We have asked other professionals in terms of the level of work
0:54:52 > 0:54:56we should put in and what we'd get back in return,
0:54:56 > 0:55:01so where we originally thought maybe we'd put a granite kitchen in,
0:55:01 > 0:55:04we've been advised it's not going to make much of a difference.
0:55:06 > 0:55:09It's taken Robin and contractor Paul five-and-a-half months
0:55:09 > 0:55:13to finish the house, meaning his original timescale
0:55:13 > 0:55:16of six months for all three properties is a distant memory.
0:55:16 > 0:55:20However, I think Robin's decision to take his time, as well as take
0:55:20 > 0:55:23advice, will pay dividends when he comes to sell.
0:55:23 > 0:55:28Especially if he sticks to that original budget of £40,000,
0:55:28 > 0:55:32which would mean a total spend here of £350,000.
0:55:35 > 0:55:38We've asked two local property agents along, to cast their
0:55:38 > 0:55:43expert eyes, starting with the agent who saw it originally.
0:55:44 > 0:55:47Very, very different, it was very run down before.
0:55:47 > 0:55:51I especially like the kitchen/diner, it's got a lovely, open feel to it.
0:55:51 > 0:55:52And it's good that they managed
0:55:52 > 0:55:55to squeeze in an en-suite to the master bedroom.
0:55:55 > 0:55:58The property's been finished to a really high standard.
0:55:58 > 0:56:00In the current market, it would appeal to
0:56:00 > 0:56:04a lot of buyers, especially buyers coming into the area from London.
0:56:04 > 0:56:08With Robin determined to sell, what could he expect,
0:56:08 > 0:56:12once the properties are completed and put on the market?
0:56:12 > 0:56:14This three-bedroom property, once finished,
0:56:14 > 0:56:18should value in the region of £220,000-£230,000.
0:56:18 > 0:56:24In the current market, I would offer this property for £240,000.
0:56:24 > 0:56:28We have got other estate agents, local ones, come along,
0:56:28 > 0:56:32and they've basically said you're looking between 260 to 280,
0:56:32 > 0:56:35so...not sure where they've got that from.
0:56:35 > 0:56:38Hopefully, the flat valuations will impress.
0:56:38 > 0:56:42I would value the two-bedroom flat in the region of £120,000 to
0:56:42 > 0:56:48£130,000, and the one-bedroom flat in the region of £115,000 to £125,000.
0:56:48 > 0:56:51The two-bedroom flat, if it was finished to the same standard
0:56:51 > 0:56:56as in this property, you could look to achieve £160,000.
0:56:56 > 0:57:00The one-bedroom flat, again, if it was the same standard,
0:57:00 > 0:57:03you could look to achieve £130,000- £140,000.
0:57:03 > 0:57:05Again, we've had valuations
0:57:05 > 0:57:11and our valuations come out, two-bed, approximately around 140-155,
0:57:11 > 0:57:16and the one-bed, you're looking at between 120-125.
0:57:16 > 0:57:18Lots of different options on this one, then.
0:57:18 > 0:57:23For simplicity, total the highest figures Robin has mentioned
0:57:23 > 0:57:27then the resale value would be around £560,000,
0:57:27 > 0:57:32giving him a potential pre-tax profit of £210,000,
0:57:32 > 0:57:36which makes Robin's switch from off-plan new build
0:57:36 > 0:57:39to auction house property really rather successful.
0:57:43 > 0:57:45Well, as you've just seen,
0:57:45 > 0:57:48investing in property can be a bit of a learning curve,
0:57:48 > 0:57:50but don't worry, we'll be back next time
0:57:50 > 0:57:52with more hints and tips for you.
0:57:52 > 0:57:55- Look forward to seeing you then. - Goodbye for now.- Goodbye.