0:00:02 > 0:00:03Hello, and welcome to the show.
0:00:03 > 0:00:05Now, the thing about property developing
0:00:05 > 0:00:07is that there's projects out there to suit everyone.
0:00:07 > 0:00:10Yes, they don't need to be too complicated or even expensive,
0:00:10 > 0:00:11unless that's what you want.
0:00:11 > 0:00:14No, and the likelihood is you'll be able to find
0:00:14 > 0:00:16exactly what you're looking for at the auctions.
0:00:43 > 0:00:46Well, there's usually a wide range of properties available at an auction.
0:00:46 > 0:00:50Yes, and a wide range of buyers looking for a bargain.
0:00:50 > 0:00:54Let's see where the bids landed on today's programme.
0:00:56 > 0:01:00First up in London's Harlesden, a hammer rule is broken.
0:01:00 > 0:01:04- Did you get a damp survey done? - I didn't, no.
0:01:04 > 0:01:06Oops!
0:01:06 > 0:01:09In Stanley, in County Durham, how does your garden grow?
0:01:09 > 0:01:14Stretching all the way back... to a great house. Ha, bonus!
0:01:16 > 0:01:20And in Ramsgate, Kent, let's call plan B a backup.
0:01:20 > 0:01:22So, guys, worst, worst case scenario...
0:01:22 > 0:01:24What are you going to do with that plot?
0:01:24 > 0:01:26Flatten it, turf it, and have a lovely summer garden.
0:01:27 > 0:01:30All of these properties have been sold at auction,
0:01:30 > 0:01:33and we'll find out who bought them and what they paid for them
0:01:33 > 0:01:34when they went under the hammer.
0:01:34 > 0:01:36Your lot, sir.
0:01:39 > 0:01:41We're in Harlesden NW10.
0:01:41 > 0:01:44It's got good transport links to central London
0:01:44 > 0:01:46and has Willesden Green on its doorstep.
0:01:46 > 0:01:50It really is well situated, yet it offers property prices
0:01:50 > 0:01:54that are less eye-watering than its more affluent neighbours.
0:01:55 > 0:01:59This seems like a nice quiet street, and it is literally a short walk
0:01:59 > 0:02:02from the train station which also makes it very convenient.
0:02:02 > 0:02:05Well, I'm here today to see a two-bedroom flat.
0:02:05 > 0:02:09It had a guide price of £210,000,
0:02:09 > 0:02:12and it's in this lovely Victorian property.
0:02:12 > 0:02:13Now, I've got my fingers crossed
0:02:13 > 0:02:16there is some character features left inside.
0:02:16 > 0:02:17I shall investigate.
0:02:17 > 0:02:21'While the outside is definitely a little unusual in shape,
0:02:21 > 0:02:24'our flat is on the first floor and comes with a reasonably healthy
0:02:24 > 0:02:29'99 year lease and a grand rent of £250 per annum.'
0:02:29 > 0:02:36Entering into this flat feels cold, smells damp, and feels moist.
0:02:36 > 0:02:40So, straightaway, not ideal, but it feels spacious.
0:02:40 > 0:02:43You've got this lovely ceiling height.
0:02:43 > 0:02:45You've got a bathroom and a loo here.
0:02:45 > 0:02:48Now, straightaway, I'd be putting a wall there
0:02:48 > 0:02:52and opening this up into one big luxury, nice bathroom.
0:02:52 > 0:02:54It would make such a difference.
0:02:54 > 0:02:57At the moment, you've got a pokey toilet and a pokey bathroom,
0:02:57 > 0:02:59but look at this - there is character.
0:02:59 > 0:03:02I do love one of these round walls.
0:03:02 > 0:03:04Get rid of this woodchip and you've got character.
0:03:04 > 0:03:07This is a nice, big Victorian building.
0:03:07 > 0:03:09We've got a bedroom, a bedroom,
0:03:09 > 0:03:12a kitchen which we'll come back to a little while.
0:03:12 > 0:03:16But look at this - for a rather spectacular lounge.
0:03:16 > 0:03:20Now, OK, there's obviously damp problems down here.
0:03:20 > 0:03:22People have had the floorboards up.
0:03:22 > 0:03:26You'd need to investigate further, but you've got fabulous windows,
0:03:26 > 0:03:30fabulous space, but, come.
0:03:30 > 0:03:34A bit of a no-no. Look out the window.
0:03:34 > 0:03:36There's a train line.
0:03:36 > 0:03:39Now that could be potentially a little bit noisy.
0:03:39 > 0:03:43I'm not sure how many times a day trains actually do pass there,
0:03:43 > 0:03:46but that is not really ideal.
0:03:46 > 0:03:48A bit of a shame.
0:03:48 > 0:03:51I suppose in London you're never really far away from a train track,
0:03:51 > 0:03:53so you might just get used to it.
0:03:53 > 0:03:56If not, you may need to look at replacing these sash windows
0:03:56 > 0:03:58with double-glazed units.
0:03:58 > 0:04:01# Get on the right track, baby
0:04:01 > 0:04:05# Get on the right track, baby. #
0:04:05 > 0:04:08'Getting the rest of the flat back on track might be harder.
0:04:08 > 0:04:12'With not just the damp, the electrics, and general disorder
0:04:12 > 0:04:16'to contend with, there's also its somewhat strange shape.'
0:04:16 > 0:04:19You've probably noticed the rooms in the flat are a little bit skew-whiff,
0:04:19 > 0:04:23and you can see why when I show you this plan.
0:04:23 > 0:04:27Now, as it's set on a curve in the road, it slants round,
0:04:27 > 0:04:30and this wall continues at an angle
0:04:30 > 0:04:33creating an almost sort of triangular shape.
0:04:33 > 0:04:34Look, you can see along here.
0:04:34 > 0:04:37But it does make the flat feel bigger
0:04:37 > 0:04:38and a big quirky, which I like.
0:04:38 > 0:04:41But some people might be put off by this.
0:04:41 > 0:04:44It could be tricky fitting your furniture in against
0:04:44 > 0:04:46some of those slanted walls, but overall,
0:04:46 > 0:04:49I think it's a flat full of character.
0:04:49 > 0:04:52# Bend me, shape me any way you want me
0:04:52 > 0:04:56# Long as you love me it's all right. #
0:04:56 > 0:05:00So bearing all that in mind, let's have another look at the kitchen.
0:05:00 > 0:05:03If you kept the layout like this, you'd need to think about
0:05:03 > 0:05:07customising the units to fit, and that could be expensive.
0:05:07 > 0:05:09You could knock through the kitchen wall
0:05:09 > 0:05:12and make it an open plan kitchen/lounge/diner.
0:05:12 > 0:05:15Now, that would certainly get rid of some of the odd angles.
0:05:17 > 0:05:20But what the local estate agent's angle on this one?
0:05:21 > 0:05:23I think a property in this condition
0:05:23 > 0:05:26would need approximately £20-25,000 in refurbishment.
0:05:26 > 0:05:30I'd look to do a kitchen and dining room, and possibly a new bathroom.
0:05:30 > 0:05:33There is a possibility of loft extension in this property.
0:05:33 > 0:05:36You would look to remove part of the wardrobe in the hallway
0:05:36 > 0:05:37in order to get the stairway for the loft.
0:05:39 > 0:05:41Hm, some good ideas from the agent there.
0:05:41 > 0:05:44Of course, with anything structural like the loft,
0:05:44 > 0:05:47you'll need to check out who owns the freehold.
0:05:48 > 0:05:51This flat was guided at £210,000 plus,
0:05:51 > 0:05:55and a loft conversion could cost between £30-40,000.
0:05:55 > 0:05:57So, would it be worth doing?
0:05:57 > 0:06:00If this property was renovated as a two-bedroom flat,
0:06:00 > 0:06:03I would look to market the property at £310,000
0:06:03 > 0:06:06with a view to getting offers in excess of £300,000.
0:06:06 > 0:06:09If this property is extended to the loft, I would look to market
0:06:09 > 0:06:15the property at £350,000 in order to achieve offers in excess of £340,000.
0:06:15 > 0:06:17And with rental returns around
0:06:17 > 0:06:19£1,300 per calendar month as a two bed,
0:06:19 > 0:06:23or £1,500 per calendar month as a three bed,
0:06:23 > 0:06:25this flat could turn into a good investment.
0:06:27 > 0:06:30Well, it might not be a standard shape,
0:06:30 > 0:06:33and that train line is definitely not ideal,
0:06:33 > 0:06:34but I really like this flat.
0:06:34 > 0:06:38It's a great size and there's potential to improve it further.
0:06:38 > 0:06:41And, it's in an area that is on the up.
0:06:41 > 0:06:44So let's see who agreed when we went to auction.
0:06:47 > 0:06:53Lot 83 is a first floor two-bedroom flat in need of modernisation.
0:06:53 > 0:06:56I'm looking for, let's say something with a two in front to start.
0:06:56 > 0:06:59200 upwards. 200, thank you. 200 I've got.
0:07:00 > 0:07:02201 anywhere? 201.
0:07:02 > 0:07:05202. 203. 204.
0:07:05 > 0:07:10205. 206. 207. 208.
0:07:10 > 0:07:13209. 210. 211.
0:07:13 > 0:07:16And so there was quite a battle for the property
0:07:16 > 0:07:21and we rejoin the bidding with the flat now at £245,000.
0:07:21 > 0:07:25245 back in again. 246.
0:07:26 > 0:07:28Good bid. 250.
0:07:28 > 0:07:30251.
0:07:30 > 0:07:35No? With you, bid's £250,000 against you on my left. Anyone else?
0:07:35 > 0:07:40If not, 250 for the first... 250 for the second...
0:07:40 > 0:07:45250 for the third and final time... All done? Sold, 250.
0:07:45 > 0:07:48And so for £250,000, the successful bidder
0:07:48 > 0:07:52for the two-bed first floor Harlesden flat is Robbie.
0:07:53 > 0:07:56Robbie owns several rental investments in different
0:07:56 > 0:07:59parts of London and currently lives in one of the properties
0:07:59 > 0:08:01which he's yet to refurbish.
0:08:01 > 0:08:03I joined him back at the flat to find out
0:08:03 > 0:08:07more about his plans for his latest purchase.
0:08:07 > 0:08:09- Robbie, congratulations. - Thank you very much.
0:08:09 > 0:08:12Are you delighted with yourself for purchasing this flat at auction?
0:08:12 > 0:08:18I am delighted. I'm very happy. It's a lovely place, yeah.
0:08:18 > 0:08:22- Big, spacious...- So, have you bought this for you or an investment?
0:08:22 > 0:08:24I bought this for myself.
0:08:24 > 0:08:27I have a couple of other rental properties that are potentially
0:08:27 > 0:08:30to live in, but I had this in mind for myself
0:08:30 > 0:08:32cos I know this area reasonably well.
0:08:32 > 0:08:35So what's your background? Have you always been a developer?
0:08:35 > 0:08:39- No, it's something I... I've been an IT professional for 15 years.- Wow!
0:08:39 > 0:08:44That's my college qualifications, my uni qualifications.
0:08:44 > 0:08:48I took redundancy, went travelling for four years, came back
0:08:48 > 0:08:51and I had been lucky enough to get into property very early
0:08:51 > 0:08:57when I moved to London originally, so I was able to then sell
0:08:57 > 0:09:01a couple of bigger properties that I had and was able to invest
0:09:01 > 0:09:04those in two or three smaller places that I've got at the moment.
0:09:04 > 0:09:09Robbie moved from his home in Northern Ireland to London in 1987,
0:09:09 > 0:09:13and quickly started property developing as a sideline -
0:09:13 > 0:09:18a pretty wise move considering the increase in London property prices.
0:09:18 > 0:09:21- What do you intend doing with it? - I want to put really nice floors in.
0:09:21 > 0:09:24I want to do something with the kitchen and the lounge area.
0:09:24 > 0:09:26Like what?
0:09:26 > 0:09:29Well, not take maybe the whole wall down,
0:09:29 > 0:09:31but I'm thinking very much of opening the wall that
0:09:31 > 0:09:33that's going into the reception at the moment,
0:09:33 > 0:09:37but at splash back level so you've got worked-ups going up towards
0:09:37 > 0:09:40the window, and you'll have a sofa area in front of that
0:09:40 > 0:09:43and a nice big archway to go into the kitchen area.
0:09:43 > 0:09:45- Something along those lines. - Pretty spectacular.
0:09:45 > 0:09:48- You're looking sort of top end. It's going to be showy.- Very much.
0:09:48 > 0:09:52Well, especially if it's something that I'm going to be
0:09:52 > 0:09:53living in myself, I want to...
0:09:53 > 0:09:56If you go to the bother of doing something for yourself,
0:09:56 > 0:09:57you may as well do it to a nice specification.
0:09:57 > 0:09:59Make it somewhere nice to live, yeah.
0:09:59 > 0:10:02So with this property in particular, it smells of damp,
0:10:02 > 0:10:05you can see the damp, you can see a lot of the walls are wet...
0:10:05 > 0:10:10- Did you get a damp survey done? - I didn't, no.- Oops!
0:10:10 > 0:10:14You have a feel for a place and damp from...
0:10:14 > 0:10:17We're saying there's a lot of window problems
0:10:17 > 0:10:20There's lots of areas and the window sills, you know,
0:10:20 > 0:10:23you got sort of a west-facing very open area,
0:10:23 > 0:10:27clearly a bit of damp coming in there. Easily fixed, I hope.
0:10:27 > 0:10:30And the roof, which I haven't actually had surveyed yet either.
0:10:30 > 0:10:34Sort of my builders are going to go in there and see whether or not
0:10:34 > 0:10:37there's anything substantial that needs to be done there.
0:10:37 > 0:10:40One way to resolve that - you could just extend up into the roof
0:10:40 > 0:10:43and smash it all out and include another bedroom and bathroom.
0:10:43 > 0:10:45Have you thought about that?
0:10:45 > 0:10:50I have thought about that and I'm very keen to do it if I can do it.
0:10:50 > 0:10:52- Oh, that's really good news. - Absolutely.
0:10:52 > 0:10:54That will add a lot of value to this property.
0:10:54 > 0:10:56Very much so, and it's a huge space up there.
0:10:56 > 0:10:58So let's move on to the finances.
0:10:58 > 0:11:00What cash have you got to splash on this place?
0:11:00 > 0:11:02I've budgeted about 70,000 for it.
0:11:02 > 0:11:06OK, so does that £70,000 include the loft?
0:11:06 > 0:11:09No, I wish it did. I wish it did.
0:11:09 > 0:11:14Normally, you know, builders will talk in terms of 40...40-ish,
0:11:14 > 0:11:1745,000 for a decent loft conversion,
0:11:17 > 0:11:23so I imagine we'd be kind of talking about adding that much to the budget
0:11:23 > 0:11:24for the build.
0:11:28 > 0:11:32It's great that Robbie wants to make this an amazing flat
0:11:32 > 0:11:34but I have to confess, I'm a bit worried
0:11:34 > 0:11:36if Robbie goes the whole hog,
0:11:36 > 0:11:41he could be in for a total spend in the region of 365,000,
0:11:41 > 0:11:43and the agent reckoned a three-bedroomed flat here
0:11:43 > 0:11:46would only make £340,000.
0:11:46 > 0:11:49Argh, um! That's less 20 grand.
0:11:49 > 0:11:52So, is this something that Robbie has considered?
0:11:52 > 0:11:54Are you worried that you might be spending more
0:11:54 > 0:11:56than the flat will be worth at the end of the day?
0:11:58 > 0:11:59No, I'm not,
0:11:59 > 0:12:04because I do genuinely believe that a flat of this size,
0:12:04 > 0:12:07in this area, done nicely, you know, sort of will be worth
0:12:07 > 0:12:12every penny of the purchase price plus the development costs.
0:12:12 > 0:12:14I also have, in my case,
0:12:14 > 0:12:19the extra relaxation of the fact that it will be my place at the end,
0:12:19 > 0:12:22somewhere for me to live in, potentially, as opposed to something
0:12:22 > 0:12:25that I absolutely have to make an instant profit on.
0:12:25 > 0:12:29- So what's your timescale to do the work?- I'm hoping for...
0:12:30 > 0:12:32..six months.
0:12:32 > 0:12:33If there's a loft involved -
0:12:33 > 0:12:36and I really hope that there will be a loft involved -
0:12:36 > 0:12:39then it might even be slightly longer timescale on that
0:12:39 > 0:12:43because of planning permission and, you know,
0:12:43 > 0:12:45maybe architect's drawings, etc.
0:12:45 > 0:12:48I can't wait to see what it's like when you've done it up. Well done.
0:12:48 > 0:12:50- Congratulations. Thank you. - Thanks very much.
0:12:51 > 0:12:54Well, it sounds as if Robbie has got big plans
0:12:54 > 0:12:56to create a fantastic home here,
0:12:56 > 0:12:59but I do think he needs to keep an eye on the budget
0:12:59 > 0:13:02as he could spend more than the flat will be worth at the end of it all.
0:13:02 > 0:13:05Will we return to see that loft conversion?
0:13:05 > 0:13:09Join me later in the programme and we can find out how he gets on.
0:13:13 > 0:13:16Stanley in County Durham is a former colliery town
0:13:16 > 0:13:19with road links to Durham and Newcastle,
0:13:19 > 0:13:21which is about 25 minutes away.
0:13:21 > 0:13:24It does have a small town centre, new leisure facilities
0:13:24 > 0:13:26and some lovely countryside.
0:13:28 > 0:13:30I'm here to look at a lot which, once upon a time,
0:13:30 > 0:13:33was part of the local authority housing stock
0:13:33 > 0:13:36and, as you know, this is the kind of housing that always gives me
0:13:36 > 0:13:37a good "feline"...
0:13:37 > 0:13:38HE SIGHS
0:13:38 > 0:13:43Two-bedroom semidetached at a guide price of £45,000.
0:13:44 > 0:13:47Garden need a bit of tidying up but, apart from that,
0:13:47 > 0:13:48looks all right.
0:13:48 > 0:13:52# Stanley, here I am
0:13:52 > 0:13:54# Here I am. #
0:13:54 > 0:13:56Well, fairly classic layout.
0:13:56 > 0:13:57Stairs up to your bedrooms there
0:13:57 > 0:14:00and then through into your living room.
0:14:00 > 0:14:02Um...wow.
0:14:02 > 0:14:03You're certainly hit by the wallpaper
0:14:03 > 0:14:05the moment you walk in here.
0:14:05 > 0:14:07Hmm, brown, eurgh... No, got to go.
0:14:07 > 0:14:08As has the floor.
0:14:08 > 0:14:11I mean, it's serviceable, I suppose, but it's just...
0:14:11 > 0:14:14It's that... It just gives, again, the wrong impression.
0:14:14 > 0:14:16Nice flooring here will definitely make
0:14:16 > 0:14:19all the difference. Even strip back the floorboards.
0:14:19 > 0:14:20But it's not a bad-sized room.
0:14:21 > 0:14:26And, as I always say, when it comes to ex-local authority houses,
0:14:26 > 0:14:30real solid walls, none of your stud partitions here.
0:14:30 > 0:14:33So, through into the kitchen
0:14:33 > 0:14:37and it's - surprise, surprise - a really nice size.
0:14:37 > 0:14:39Easily enough space, probably over there,
0:14:39 > 0:14:42for a sort of table and chairs or at least breakfast bar idea.
0:14:43 > 0:14:45It's not in the best of conditions.
0:14:45 > 0:14:48These units, although, probably pretty serviceable,
0:14:48 > 0:14:49and if you were renting this place out,
0:14:49 > 0:14:50you might leave them.
0:14:50 > 0:14:52But, I think, for a small investment,
0:14:52 > 0:14:56you could definitely sparkle this place up.
0:14:56 > 0:15:01So, in terms of that little utility area there - beyond me.
0:15:01 > 0:15:02It is what it is
0:15:02 > 0:15:03and I like it.
0:15:04 > 0:15:08Bold wallpaper and underwhelming flooring aside,
0:15:08 > 0:15:10I think this has a lot going for it.
0:15:10 > 0:15:13And you could add value by replacing the kitchen.
0:15:15 > 0:15:18I reckon, given the semi's condition and position,
0:15:18 > 0:15:21it would be an ideal first-time buyer property.
0:15:21 > 0:15:25Hopefully, the foliage is confined to the downstairs.
0:15:25 > 0:15:28So, up here and...
0:15:28 > 0:15:30Well, the bathroom. It's exactly where you want it to be -
0:15:30 > 0:15:31top of the stairs, so to speak.
0:15:31 > 0:15:34It's been knocked through into one. I imagine, in early days
0:15:34 > 0:15:36this would have been a separate bathroom and loo.
0:15:36 > 0:15:37That's good.
0:15:37 > 0:15:41It would definitely benefit from some tender loving care, though.
0:15:41 > 0:15:45Probably replace the suite with a white one,
0:15:45 > 0:15:47really modernise it and you'd definitely get your money back
0:15:47 > 0:15:50in terms of what value you would add to the house.
0:15:50 > 0:15:53But two bedrooms. OK, it'll...
0:15:53 > 0:15:55Well, I guess it would be a three-bedroomed house
0:15:55 > 0:15:58but I like the fact you've got two really good-sized beds.
0:15:58 > 0:16:00There's one at the back there, one at the front here.
0:16:00 > 0:16:03Yeah, it's just a really good family home.
0:16:04 > 0:16:07Again, there are some decoration issues.
0:16:07 > 0:16:09The carpeting needs replacing and,
0:16:09 > 0:16:12yes, there are flowery things going on up here too.
0:16:12 > 0:16:15But the one place I would have liked to have seen some
0:16:15 > 0:16:17is in the front garden,
0:16:17 > 0:16:20but there is a notable absence of any colour.
0:16:21 > 0:16:24Curb appeal totally missing here, I'm afraid.
0:16:24 > 0:16:27What about round the back?
0:16:27 > 0:16:31Whoa, one of the bonuses of ex-local authority houses
0:16:31 > 0:16:35is that they often have really good-sized gardens,
0:16:35 > 0:16:37and that's certainly the case here.
0:16:37 > 0:16:41Now, it is a little bit overgrown but what it is
0:16:41 > 0:16:46is a really nice size, stretching all the way back to a greenhouse.
0:16:46 > 0:16:48Ah, bonus!
0:16:52 > 0:16:55Now, I love a garden and a greenhouse but,
0:16:55 > 0:16:57as there is a dandelion or two,
0:16:57 > 0:16:59there is a bit of weeding to be done.
0:16:59 > 0:17:04This garden would not necessarily be a bonus if you were a landlord.
0:17:04 > 0:17:07Maintaining gardens can be a thorny issue with tenants.
0:17:07 > 0:17:10However, it's a good garden for a family,
0:17:10 > 0:17:13but then there's only two bedrooms.
0:17:13 > 0:17:16What does a local estate agent think of this lot?
0:17:17 > 0:17:20First impressions of this property are it's a fairly standard layout.
0:17:20 > 0:17:22It's what you would expect of a property of this type.
0:17:22 > 0:17:24Immediately, you notice the size of the garden.
0:17:24 > 0:17:25It's a really good size garden.
0:17:25 > 0:17:28Plenty of potential for somebody to do more with that.
0:17:28 > 0:17:30In the current market, there's a slightly limited appeal
0:17:30 > 0:17:33for two-bedroom properties. We're tending to find,
0:17:33 > 0:17:35particularly as first-time buyers are older now,
0:17:35 > 0:17:37they may be at a different stage of life
0:17:37 > 0:17:40and go straight for a three-bedroom or maybe four-bedroom property.
0:17:40 > 0:17:41They may already have children,
0:17:41 > 0:17:44or they may be thinking of starting a family fairly soon.
0:17:44 > 0:17:47Of course, a two-bedroom property is limited in that respect.
0:17:47 > 0:17:49Now that is an interesting point to consider.
0:17:49 > 0:17:53Demographics have a profound impact on the housing market.
0:17:53 > 0:17:58Nonetheless, this house does have an attractive guide price of £45,000.
0:17:58 > 0:18:01What does the agent think it could be worth?
0:18:01 > 0:18:03I think if the property were done up to a good standard
0:18:03 > 0:18:05and put on the open market for resale,
0:18:05 > 0:18:07you'd be looking to achieve something hopefully
0:18:07 > 0:18:10in the region of £70,000-£75,000.
0:18:10 > 0:18:13There's a fairly good demand for rental properties in the area.
0:18:13 > 0:18:17I would expect to achieve something in the region of £400 per calendar month.
0:18:17 > 0:18:21So, who was up for a good, solid little house
0:18:21 > 0:18:26in need of a bit of modernisation at a really good guide price?
0:18:26 > 0:18:28Let's find out when it went under the hammer.
0:18:28 > 0:18:30Semidetached house, vacant.
0:18:30 > 0:18:33As you see it in your catalogues. What shall we say for it?
0:18:33 > 0:18:34Do you want to bid me 50 for this?
0:18:34 > 0:18:36Cheap for the money. 50, somebody?
0:18:39 > 0:18:42Yes, thank you. 50 I'm bid. 51.
0:18:42 > 0:18:4651. 52. 53. 54.
0:18:46 > 0:18:4855.
0:18:48 > 0:18:51At 55.5 in a new place. 56.
0:18:51 > 0:18:5356.5.
0:18:53 > 0:18:5456.5 in a new place.
0:18:54 > 0:18:5757. 57 here?
0:18:57 > 0:18:5957. 57.5.
0:18:59 > 0:19:0157.5. 58.
0:19:01 > 0:19:0358. 58.5.
0:19:04 > 0:19:07Sure? On my right then at £58,000 I'm bid.
0:19:07 > 0:19:09Yours at 58 once.
0:19:09 > 0:19:1258 twice.
0:19:12 > 0:19:14Third and final time.
0:19:14 > 0:19:17- BANGS GAVEL - Sells to you at £58,000.
0:19:17 > 0:19:19The successful bidder was Noman,
0:19:19 > 0:19:23who is a property developer and a legal student living in London.
0:19:23 > 0:19:25So, what has brought him
0:19:25 > 0:19:29to Stanley to buy this good little house for £58,000?
0:19:29 > 0:19:32- Noman, nice to meet you. - Nice to meet you too.
0:19:32 > 0:19:34- Congratulations.- Thank you.
0:19:34 > 0:19:36Tell me why you wanted to buy this place.
0:19:36 > 0:19:39- I bought... Before this, I bought another two properties.- Oh!
0:19:39 > 0:19:41One in Lowton, one in Kettering.
0:19:41 > 0:19:43Three, four days before the auction,
0:19:43 > 0:19:49I called them to view some property in Liverpool, Manchester.
0:19:49 > 0:19:51They said all of them finished actually.
0:19:51 > 0:19:53There are no more viewing.
0:19:53 > 0:19:57And suddenly, I called regarding this property and they said, "Yes.
0:19:57 > 0:20:00"There is viewing tomorrow morning, 9 o'clock."
0:20:00 > 0:20:01In terms of the country then,
0:20:01 > 0:20:04it seems like you're...well, happy to go anywhere.
0:20:04 > 0:20:05You've got properties in Kettering
0:20:05 > 0:20:08- and...where was this other one you said?- Lowton.- Lowton.
0:20:08 > 0:20:11- Yeah.- You were looking at properties in Liverpool and Manchester?
0:20:11 > 0:20:14- That's right.- You've ended up with somewhere in the Northeast.
0:20:14 > 0:20:17What is this? Like, close your eyes, stick a pin in the map
0:20:17 > 0:20:18and - pow - buy a property there?
0:20:18 > 0:20:21I do some research as well before buying the property.
0:20:21 > 0:20:25I see the sold price on the website and, you know,
0:20:25 > 0:20:29when I come here, I call the estate agent as well.
0:20:29 > 0:20:33I mean, what I can achieve before I sell the property
0:20:33 > 0:20:34or what's the standard.
0:20:34 > 0:20:39If I do some upgrading on the property, so then, you know...
0:20:39 > 0:20:40decide to buy it.
0:20:40 > 0:20:44Noman also works in electricity and gas sales,
0:20:44 > 0:20:46so he travels around the country.
0:20:46 > 0:20:48This is on top of studying for his law degree
0:20:48 > 0:20:51as well as having a wife and baby daughter.
0:20:51 > 0:20:52He's a busy man.
0:20:52 > 0:20:55And, on top of all that, he'll do the work here.
0:20:55 > 0:20:57So, what's the plan?
0:20:57 > 0:20:59I'm going to keep it as it is in this room.
0:20:59 > 0:21:01- What, including the wallpaper?- No.
0:21:01 > 0:21:04I'm going to paint or put in new wallpaper.
0:21:04 > 0:21:06The floor, it will be the same as it is.
0:21:06 > 0:21:09It looks quite good but I'm going to put some bit in the corner.
0:21:09 > 0:21:14Upstairs I'm going to change the carpet. Bought the carpets.
0:21:14 > 0:21:19I'm planning to change all the toilet but I'm painting throughout
0:21:19 > 0:21:21and changing the carpets.
0:21:21 > 0:21:24Clearing the garden - front and back.
0:21:24 > 0:21:26- OK.- That's what I'm going to do.
0:21:26 > 0:21:30Noman is rightly cautious about any refurbishment costs.
0:21:30 > 0:21:33He did pay £13,000 over the guide price.
0:21:33 > 0:21:36Still, he plans to weigh up professional advice
0:21:36 > 0:21:39before deciding what to do next.
0:21:39 > 0:21:42So is the idea then to rent it out?
0:21:43 > 0:21:45I have...two plans.
0:21:45 > 0:21:49Definitely I'm going to put it back to the market for sale.
0:21:49 > 0:21:52That's actually... It all depends on the circumstances, really.
0:21:52 > 0:21:55How much money I can gain after doing the works.
0:21:55 > 0:21:57I'll get some opinion, then, you know,
0:21:57 > 0:21:59I'll go ahead with the work actually.
0:21:59 > 0:22:01Put it back to the market or,
0:22:01 > 0:22:06if I can see that I can't achieve anything of what I expect,
0:22:06 > 0:22:09- then might be on rent.- OK.
0:22:09 > 0:22:13Noman will have to take on board the slow market in this area.
0:22:13 > 0:22:16His previous property experience was in London which,
0:22:16 > 0:22:19as we all know, is its own phenomena.
0:22:19 > 0:22:23He made £60,000 in eight months there.
0:22:23 > 0:22:25What's the timescale for what you're planning?
0:22:25 > 0:22:27Maybe a week.
0:22:27 > 0:22:30- MARTIN LAUGHS It's not much work anyway, so...- No.
0:22:30 > 0:22:32..that's what I'm thinking to finish the work.
0:22:32 > 0:22:35How much are you spending on it, do you think, budget-wise?
0:22:35 > 0:22:39No more than 3,000, that's max. Between 2 and 3.
0:22:39 > 0:22:42What do you think you might be able to sell it for?
0:22:42 > 0:22:45Um, there is conflicting information actually.
0:22:45 > 0:22:48I called the local estate agent before I buy the property.
0:22:48 > 0:22:52- They said 75 or 70...- Mm-hm.
0:22:52 > 0:22:54..but I got a second opinion.
0:22:54 > 0:23:00They are saying I can't achieve more than 60 or 65. That's what they said.
0:23:00 > 0:23:03When did you get the second opinion? After you bought it?
0:23:03 > 0:23:05Yeah, after I bought it, cos I have to buy it, so...
0:23:05 > 0:23:11So I would say I'm expecting at least 75 or 70.
0:23:11 > 0:23:15Even if I don't achieve anything... This is the very beginning.
0:23:15 > 0:23:19I want to be in the market for about 10-12 years, so I don't mind.
0:23:19 > 0:23:23Even losing a couple of grand, it's just experience.
0:23:23 > 0:23:27I can see that Noman is trying to curtail the spend
0:23:27 > 0:23:29and trying to protect his potential profit,
0:23:29 > 0:23:32but he might do better doing a bit more work
0:23:32 > 0:23:34to get this property up to scratch
0:23:34 > 0:23:37and looking into it as a long-term investment.
0:23:37 > 0:23:41But then, Noman does have a lot on his plate, like his studies.
0:23:41 > 0:23:43- I just finished my second year exam. - Well done.
0:23:43 > 0:23:45- I've got another year to do. - Oh, right.
0:23:45 > 0:23:49- And then I would like to become a solicitor actually.- Oh, great.
0:23:49 > 0:23:52- So, still a long way to go. - Well, listen, congratulations.
0:23:52 > 0:23:54- Thank you very much.- Good luck with it.- Thank you.
0:23:54 > 0:23:56- And nice to meet you. - Nice to meet you too.
0:23:57 > 0:24:03Well, it's certainly a minimalistic renovation that Noman has
0:24:03 > 0:24:04in mind for this place.
0:24:04 > 0:24:09But maybe that's not such a bad idea given that its value
0:24:09 > 0:24:12might not be as high as he had originally hoped.
0:24:12 > 0:24:14How will he get on?
0:24:14 > 0:24:16You can find out later in the show.
0:24:18 > 0:24:20Still to come, there'll be plenty of work ahead
0:24:20 > 0:24:23for whoever buys a plot in Ramsgate, Kent,
0:24:23 > 0:24:26that can only be seen via a step ladder.
0:24:29 > 0:24:30But in Stanley, County Durham,
0:24:30 > 0:24:33it looks like Noman was true to his word.
0:24:33 > 0:24:37I've spent 250 including everything.
0:24:41 > 0:24:44First up, though, is Harlesden in northwest London,
0:24:44 > 0:24:47where this first floor, two-bedroomed, split-level flat
0:24:47 > 0:24:50is very close to good transport links.
0:24:50 > 0:24:53Actually, I thought it was too close to the railway line.
0:24:54 > 0:24:56But that didn't put off Robbie,
0:24:56 > 0:25:00a retired systems analyst who paid 250,000 for it,
0:25:00 > 0:25:04intending to do a full refurbishment and move in himself.
0:25:06 > 0:25:08It smells of damp, you can see the damp,
0:25:08 > 0:25:10you can see a lot of the walls are wet.
0:25:10 > 0:25:12Did you get a damp survey done?
0:25:12 > 0:25:13I didn't, no.
0:25:13 > 0:25:15- HE LAUGHS - Oops.
0:25:15 > 0:25:17You have a feel for a place.
0:25:17 > 0:25:20And...damp from the...
0:25:20 > 0:25:22You were saying there's a lot of window problems.
0:25:22 > 0:25:25There's lots of areas in the windowsills.
0:25:25 > 0:25:28You know, you've got a kind of west-facing, very open area,
0:25:28 > 0:25:31clearly a bit of damp coming in there.
0:25:31 > 0:25:32Easily fixed, I hope.
0:25:32 > 0:25:36And the roof, which I haven't actually had surveyed yet either...
0:25:36 > 0:25:39One way to resolve that, you could just extend up into the roof,
0:25:39 > 0:25:42and smash it all out, and include another bedroom or bathroom.
0:25:42 > 0:25:43Have you thought about that?
0:25:43 > 0:25:45I have thought about that,
0:25:45 > 0:25:47and I'm very keen to do it if I can do it.
0:25:47 > 0:25:49Robbie had grand plans
0:25:49 > 0:25:53for transforming the quirky-shaped rooms into a more attractive space.
0:25:55 > 0:25:57And not take maybe the whole wall down
0:25:57 > 0:26:00but I'm thinking very much of opening the wall
0:26:00 > 0:26:02that's going into the reception at the moment
0:26:02 > 0:26:03but at splashback levels.
0:26:03 > 0:26:06So you've got worktops going up towards the window,
0:26:06 > 0:26:09and you'll have a sofa area in front of that,
0:26:09 > 0:26:12and a nice big archway to go into the kitchen area,
0:26:12 > 0:26:14- along those lines. - Pretty spectacular.
0:26:14 > 0:26:18- You're looking sort of top end. It's going to be showy.- Very much.
0:26:18 > 0:26:20Not including the loft conversion,
0:26:20 > 0:26:22Robbie had a timescale of six months.
0:26:22 > 0:26:24So, six months later, we're back
0:26:24 > 0:26:27to find out how showy he's made it.
0:26:29 > 0:26:32Everything certainly looks much fresher
0:26:32 > 0:26:34with a coat of paint and new carpeting.
0:26:55 > 0:26:58But there's no loft conversion.
0:26:58 > 0:27:01The plan to knock the kitchen into the lounge hasn't materialised.
0:27:03 > 0:27:06And there appears to be just minor changes to the bathroom.
0:27:06 > 0:27:09So, what happened?
0:27:09 > 0:27:10When I bought, initially,
0:27:10 > 0:27:16I had a grand plan to do a big refurbishment downstairs,
0:27:16 > 0:27:20knock through this kind of kitchen area, make a bigger bathroom,
0:27:20 > 0:27:25you know, do a complete refurbishment on the walls and on the floors.
0:27:25 > 0:27:27But, before starting major work,
0:27:27 > 0:27:30Robbie decided to purchase a share of the property's freehold
0:27:30 > 0:27:34but he's had difficulty, so he's taking legal steps.
0:27:34 > 0:27:38So I thought I would do just a very small refurbishment
0:27:38 > 0:27:41to allow me to move into the place
0:27:41 > 0:27:46and live here while we go through the longer legal process
0:27:46 > 0:27:50to buy the freehold, and do the whole job at one time.
0:27:52 > 0:27:54Changes in legislation mean
0:27:54 > 0:27:56if qualifying leaseholds in the property
0:27:56 > 0:27:59want to buy a share of the freehold, the freeholder is compelled -
0:27:59 > 0:28:01by law - to sell it to them.
0:28:01 > 0:28:04So, along with the downstairs tenant,
0:28:04 > 0:28:06Robbie is doing just that.
0:28:06 > 0:28:09Once completed, not only will they be able to get on
0:28:09 > 0:28:11with all the structural work,
0:28:11 > 0:28:13but he'll have raised the value of his property too.
0:28:13 > 0:28:18But this temporary setback hasn't halted all works.
0:28:18 > 0:28:21I did some floor repairs, some window repairs,
0:28:21 > 0:28:24obviously painted and decorated,
0:28:24 > 0:28:28and replastered some of the worse area of the walls.
0:28:29 > 0:28:34Sand the kitchen, really very little other than putting in white goods,
0:28:34 > 0:28:38the bathroom - some tap changes, mixer changes
0:28:38 > 0:28:41and some new light fittings.
0:28:41 > 0:28:44Other than that, carpeting, soft furnishings.
0:28:44 > 0:28:47That's really all that's been done at this point.
0:28:47 > 0:28:50It's only a trifle compared to his major plans,
0:28:50 > 0:28:53but there's no denying that what Robbie has done so far
0:28:53 > 0:28:56has made a once-dingy, old flat far more appealing.
0:28:58 > 0:29:01Robbie has only spent nine grand of his development budget,
0:29:01 > 0:29:05so will the value of the property now reach the dizzying heights
0:29:05 > 0:29:09of the £300,000 valuation for a fully refurbished flat
0:29:09 > 0:29:12that was suggested when we first came to visit?
0:29:16 > 0:29:20Will buoyant London property prices outweigh the minimal renovation
0:29:20 > 0:29:22and still produce a profit?
0:29:22 > 0:29:27After all, Robbie has spent £259,000 on this property.
0:29:27 > 0:29:30We asked two local agents along to get their opinions.
0:29:33 > 0:29:35If I was to value this property for sales,
0:29:35 > 0:29:39I would look to market the property at £379,950
0:29:39 > 0:29:43to achieve offers in excess of £360,000.
0:29:43 > 0:29:45If I was going to put this property on the market today,
0:29:45 > 0:29:49I would market it at a price of £360,000.
0:29:49 > 0:29:53If Robbie could sell for £360,000,
0:29:53 > 0:29:59he'd make a potential profit of £101,000, minus fees and expenses.
0:30:00 > 0:30:03Well, they're good, positive figures. That's...
0:30:03 > 0:30:07I mean, it's a good indication that my gut feeling
0:30:07 > 0:30:11as to the purchase price at the auction was a good value price.
0:30:12 > 0:30:16Yes. £100,000 profit in six months
0:30:16 > 0:30:19after a £9,000 renovation
0:30:19 > 0:30:22is a pretty amazing result in anyone's book.
0:30:22 > 0:30:23That's the London factor
0:30:23 > 0:30:27and a rising market which isn't true in every area.
0:30:27 > 0:30:28But how does that affect
0:30:28 > 0:30:31the furthermore expensive refurbishment plans?
0:30:32 > 0:30:34The agents seem to have suggested
0:30:34 > 0:30:38that most of the realisation in the property value
0:30:38 > 0:30:43has effectively already happened with a fairly small refurbishment,
0:30:43 > 0:30:46and that the large refurb and loft conversion
0:30:46 > 0:30:50you may not, actually, sort of get the money back that you put in.
0:30:50 > 0:30:53But I'm still quite keen to do the long-term refurbishment
0:30:53 > 0:30:56because I can see a beautiful space and a beautiful loft conversion.
0:30:56 > 0:30:59And it's already a lovely flat.
0:30:59 > 0:31:02Well, when it's your own home it's not all about increasing value,
0:31:02 > 0:31:04it's also about being happy there.
0:31:04 > 0:31:07Speaking of which, what's happening about the damp problem?
0:31:09 > 0:31:11The exterior problem that's causing the damp
0:31:11 > 0:31:14has not actually been resolved yet.
0:31:14 > 0:31:17I've got a roofer coming this afternoon to do the gutter repair,
0:31:17 > 0:31:22so, hopefully, after that the walls will dry out
0:31:22 > 0:31:24and I won't any longer have a problem with that.
0:31:25 > 0:31:28So with the damp problem and the legal issues
0:31:28 > 0:31:29regarding the freehold,
0:31:29 > 0:31:32it's been far from a straightforward journey.
0:31:32 > 0:31:35So, has Robbie got any advice for future developers?
0:31:35 > 0:31:37Don't do it. Don't do it.
0:31:37 > 0:31:39HE LAUGHS It's a nightmare.
0:31:44 > 0:31:47Well, hopefully, there'll be calmer waters in Ramsgate, Kent.
0:31:48 > 0:31:51It's a nice, coastal town with a lovely marina
0:31:51 > 0:31:54and it's connected to London by a high-speed rail link.
0:31:54 > 0:31:5615 minutes' walk from the marina
0:31:56 > 0:31:59and I'm here to see today's auction lot.
0:31:59 > 0:32:01Now, the houses along here are quite nice.
0:32:01 > 0:32:04The guide was set at just 8-10,000,
0:32:04 > 0:32:08so my expectations are at an all-time low.
0:32:08 > 0:32:10It's not this one...
0:32:10 > 0:32:11No.
0:32:11 > 0:32:15It's not this one round here, which is just an old derelict plot.
0:32:15 > 0:32:17Typical. It's this one!
0:32:17 > 0:32:21It's behind that wall and, sadly, I can't get into it today.
0:32:21 > 0:32:25They always say it's advisable to buy the worst house on the street
0:32:25 > 0:32:27but that is taking things a bit far.
0:32:27 > 0:32:29It's not even a house anymore.
0:32:29 > 0:32:33The footings are over there but it's classed as land.
0:32:33 > 0:32:38Excitingly, the auction catalogue tells me it has potential.
0:32:38 > 0:32:39I'm going to investigate.
0:32:45 > 0:32:48Our view of the site is blocked by the high wall and the trees.
0:32:48 > 0:32:51From across the road you can get a feel of its size
0:32:51 > 0:32:53and its position between another vacant site
0:32:53 > 0:32:56on the corner and St John's Ambulance station.
0:32:59 > 0:33:02The lot is surrounded by houses, and shops, and small businesses,
0:33:02 > 0:33:05so that opens up a variety of possible options.
0:33:08 > 0:33:10There isn't any planning in place at the moment,
0:33:10 > 0:33:13hence the reason for that low guide.
0:33:13 > 0:33:15But, imagine if you achieve planning permission
0:33:15 > 0:33:18to build a three-bedroom house over there.
0:33:18 > 0:33:22It's in a residential area, the access is really good,
0:33:22 > 0:33:25and it's a large enough site to accommodate a house.
0:33:25 > 0:33:27But, as we know, achieving planning permission
0:33:27 > 0:33:29is never ever a sure thing.
0:33:29 > 0:33:33Buying land with hope value is always a gamble.
0:33:33 > 0:33:36You could be left with an expensive parcel of land
0:33:36 > 0:33:38if things don't go your way.
0:33:38 > 0:33:39That's my concern.
0:33:40 > 0:33:43By the way, in case you haven't heard the phrase
0:33:43 > 0:33:45"hope value" before,
0:33:45 > 0:33:47that little bit of jargon in this particular case
0:33:47 > 0:33:51just means the bit of the market value that reflects the hope
0:33:51 > 0:33:53that the property has the possibility of being developed
0:33:53 > 0:33:57in some way that may just add value.
0:33:57 > 0:34:00But, of course, it is just that - hope.
0:34:00 > 0:34:01As we should all know by now,
0:34:01 > 0:34:04nothing is certain in the world of planning regulation,
0:34:04 > 0:34:05so getting carried away
0:34:05 > 0:34:09by the very attractive guide price of 8-10,000
0:34:09 > 0:34:11might prove to be a mistake.
0:34:12 > 0:34:15So, picture the scene - the planning application has been granted,
0:34:15 > 0:34:17you've built your dream house
0:34:17 > 0:34:20and you look out of your window to admire the view.
0:34:20 > 0:34:23Ooh, it's not great, is it?
0:34:23 > 0:34:26This will, no doubt, have a negative impact on the value of the house.
0:34:26 > 0:34:29I would make it my business to contact the council
0:34:29 > 0:34:32and ask if there's any plans to develop this site.
0:34:32 > 0:34:36You may find out they're thinking of building new houses here
0:34:36 > 0:34:39or they've been given the go-ahead for a chicken factory!
0:34:39 > 0:34:41Oh, no! That would be a nightmare.
0:34:41 > 0:34:42One thing's for sure though,
0:34:42 > 0:34:45you will need to do your homework before going to the auction.
0:34:48 > 0:34:50Of course, if the buyer of the auction lot
0:34:50 > 0:34:52actually wanted to build a chicken factory,
0:34:52 > 0:34:56again, some homework and weighing up the risks would needed,
0:34:56 > 0:34:59like, what are the council's plans for this area,
0:34:59 > 0:35:02and what kind of developments are they keen to encourage?
0:35:02 > 0:35:05Maybe explore if this other bit of land is for sale
0:35:05 > 0:35:07and make the plot and the potential bigger.
0:35:07 > 0:35:10It has to be said, plots of land with access
0:35:10 > 0:35:13and services are generally very sought after,
0:35:13 > 0:35:16especially with people who want to self build.
0:35:16 > 0:35:21The self-build market accounts for about 7% of new houses in the UK.
0:35:21 > 0:35:23So, what are the benefits?
0:35:25 > 0:35:26You get a bespoke house,
0:35:26 > 0:35:30it's roughly 30% cheaper than buying an existing property,
0:35:30 > 0:35:32it's tax-free,
0:35:32 > 0:35:36and if the plot costs less than £125,000,
0:35:36 > 0:35:40well, you can escape stamp duty. Perfect.
0:35:41 > 0:35:42Time to get some local gen
0:35:42 > 0:35:44from an estate agent.
0:35:44 > 0:35:46What does he think could be done with this plot
0:35:46 > 0:35:49guided at 8-10,000?
0:35:49 > 0:35:50It's a small plot.
0:35:50 > 0:35:52It'll be quite difficult to develop
0:35:52 > 0:35:55but it is big enough to put a single unit on there.
0:35:55 > 0:35:59In an ideal world, you'd like to buy the extra land next to the site,
0:35:59 > 0:36:01perhaps build a couple of units on there
0:36:01 > 0:36:05because, without that, if you just built the site in isolation,
0:36:05 > 0:36:09it's going to be sat next to a St John's Ambulance centre
0:36:09 > 0:36:12plus a rundown, derelict plot next door,
0:36:12 > 0:36:14so it's not going to be particularly attractive.
0:36:16 > 0:36:19What kind of potential could this plot have?
0:36:19 > 0:36:21Let's say you bought it for £15,000.
0:36:21 > 0:36:23If you could achieve planning on this site
0:36:23 > 0:36:26for perhaps a 900 sq ft, three-bedroom town house,
0:36:26 > 0:36:31realistically, you're looking at a plot value of about £30,000.
0:36:31 > 0:36:33That all-important planning permission
0:36:33 > 0:36:36could potentially double the value overnight.
0:36:36 > 0:36:38So, how much could a new house be worth?
0:36:38 > 0:36:42If you built a decent, three-bedroom town house on the site,
0:36:42 > 0:36:45it's going to have a small garden, it's not going to be a big plot,
0:36:45 > 0:36:47but really that end unit's going to be worth
0:36:47 > 0:36:49somewhere in the order of £180,000.
0:36:50 > 0:36:53So, plenty of potential profit,
0:36:53 > 0:36:55even allowing for the build costs of a new property.
0:36:57 > 0:37:00This is a risky purchase.
0:37:00 > 0:37:03Great if the planning goes your way, not so great if it doesn't.
0:37:03 > 0:37:06Somebody thought it was a gamble worth taking though.
0:37:06 > 0:37:08Let's find out who that was as we go to auction.
0:37:08 > 0:37:11Land with potential, close to the town centre.
0:37:11 > 0:37:12Cheap little lot here.
0:37:12 > 0:37:14Where are you going to start? 10,000 for it.
0:37:14 > 0:37:16£10,000, can I say?
0:37:16 > 0:37:1710,000, can I say?
0:37:17 > 0:37:19Give me 8. Get me on the way.
0:37:19 > 0:37:20£8,000 bid I've got.
0:37:20 > 0:37:2210 I'm looking for.
0:37:22 > 0:37:2310,000 on the phone.
0:37:23 > 0:37:2510,000 on the phone. 11,000 if you like.
0:37:25 > 0:37:28It's in the room to be sold. Get one. One more.
0:37:28 > 0:37:30No? You know you'd make her really happy.
0:37:30 > 0:37:3111,000 at the back.
0:37:31 > 0:37:34At £11,000 at the back. £12,000.
0:37:35 > 0:37:3611.5 if you like.
0:37:36 > 0:37:3812,000 in the door.
0:37:38 > 0:37:4012.5 if you wish now. 12.5.
0:37:40 > 0:37:42And 13. 13.5.
0:37:42 > 0:37:4413.5. 14.
0:37:44 > 0:37:46At 14. 14.5.
0:37:46 > 0:37:48I've got it 14.5. Now 15.
0:37:48 > 0:37:51Are we all done at 14.5? 15 anywhere else?
0:37:51 > 0:37:53It's that number there for the first time.
0:37:53 > 0:37:5614.5 for the second time.
0:37:56 > 0:37:58Third and final time at 14,500.
0:37:58 > 0:38:00- BANGS GAVEL - Your bit of land, sir.
0:38:01 > 0:38:06Grabbing that bit of land for £14,500 was Andy, here on the left,
0:38:06 > 0:38:08and his friend and business partner Ben.
0:38:08 > 0:38:10Andy is an accountant based in London
0:38:10 > 0:38:13and Ben is a construction site manager,
0:38:13 > 0:38:16who is a local lad, accountant and a site manager.
0:38:16 > 0:38:19Ha, sounds like a dream team when it comes to property development.
0:38:19 > 0:38:22I met up with them to find out why they were willing to risk
0:38:22 > 0:38:24buying this plot of land.
0:38:24 > 0:38:26Guys, congratulations.
0:38:26 > 0:38:28Happy with the price you paid on auction day?
0:38:28 > 0:38:30Um, yeah, I'd say so. Fairly happy with it.
0:38:30 > 0:38:33It didn't go over budget, so... Yeah, happy.
0:38:33 > 0:38:35Andy, what was your top limit?
0:38:35 > 0:38:38£500 more - £15,000.
0:38:38 > 0:38:40- Really?- So it was right on the edge, yeah.
0:38:40 > 0:38:43So do you feel you've got yourselves a bargain here?
0:38:43 > 0:38:45- Potentially, yeah.- Yeah, well, hopefully.
0:38:45 > 0:38:47Everything seems to be indicating that,
0:38:47 > 0:38:50so, yeah, I'm happy with it all so far.
0:38:50 > 0:38:51So why does it appeal to you?
0:38:51 > 0:38:53Cos it's big enough to put one house on,
0:38:53 > 0:38:54so with the price we paid for it,
0:38:54 > 0:38:57we're not going to lose money on what we've bought,
0:38:57 > 0:39:00and potentially we're looking to buy the two plots at the front of it as well.
0:39:00 > 0:39:03We've made an offer on the corner one, so we're waiting to have acceptance.
0:39:03 > 0:39:04If we do get all three,
0:39:04 > 0:39:07then there's scope to do something much bigger on it.
0:39:07 > 0:39:11So the land next to their purchase is actually two plots and not one.
0:39:11 > 0:39:14Andy and Ben are aiming high here.
0:39:14 > 0:39:17Getting the other parcels of land could mean they have this wrapped up
0:39:17 > 0:39:19with potentially higher returns
0:39:19 > 0:39:22but, without the permissions, an even higher risk.
0:39:22 > 0:39:25# Livin' on the edge... #
0:39:27 > 0:39:31- Do you think you will get planning permission for that?- Yeah, without a doubt.
0:39:31 > 0:39:33If you look round the surrounding area, it's rundown,
0:39:33 > 0:39:36and there's a need for housing in Thanet at the moment.
0:39:36 > 0:39:38That's a disused space,
0:39:38 > 0:39:40so I don't see there being any issues with it.
0:39:40 > 0:39:43If we get it outlined, agreed in principle for that as well,
0:39:43 > 0:39:46it'll help us with the other two if we do get that.
0:39:46 > 0:39:48Hang on, they haven't even bought the land yet.
0:39:48 > 0:39:52These guys are in a hurry and the risks keep piling up.
0:39:53 > 0:39:55So, Ben, have you even walked around on the plot?
0:39:55 > 0:39:58No, I've had a look over the wall off a ladder, that's about it,
0:39:58 > 0:40:01and seen it on an ordnance survey map so I could see the size of it
0:40:01 > 0:40:03but that's as far as it's gone, to be honest.
0:40:03 > 0:40:05I don't think you can get into the plot at the moment.
0:40:05 > 0:40:08They're confident for sure and, given their professions,
0:40:08 > 0:40:09why shouldn't they be?
0:40:10 > 0:40:12How are you going to make it work as a team?
0:40:12 > 0:40:14I mean, who's going to be on this, over this,
0:40:14 > 0:40:15talking to the builders, the planners?
0:40:15 > 0:40:17- Who's doing that side of it? - I'll run the job.
0:40:17 > 0:40:20Well, I'll project manage and run the job from down here
0:40:20 > 0:40:21while Andy's in London,
0:40:21 > 0:40:23and he'll deal with anything that's financial,
0:40:23 > 0:40:26like any payments, material purchase, everything like that.
0:40:26 > 0:40:30So we're kind of getting him into construction-minded thinking
0:40:30 > 0:40:31rather than just figures.
0:40:31 > 0:40:33- SHE LAUGHS - Right, OK, do you hear that?
0:40:33 > 0:40:36- I need that.- It's come from the horse's mouth.- Yep.
0:40:36 > 0:40:38He's already training me already.
0:40:39 > 0:40:41They make it sound so easy
0:40:41 > 0:40:43but there are a lot of issues to tackle.
0:40:43 > 0:40:46They definitely aim to build one town house on the site they bought
0:40:46 > 0:40:49and have it completed in six months.
0:40:49 > 0:40:52They hope to buy the rest of the land here for around 50,000.
0:40:52 > 0:40:57It's a case of literally watch this space, or rather, these spaces.
0:40:58 > 0:41:01My worry is, Andy, that you'll build a beautiful town house
0:41:01 > 0:41:04and it'll be overlooking a very ugly, derelict plot of land.
0:41:04 > 0:41:05What happens then?
0:41:05 > 0:41:08Well, in Ramsgate at present, there's a big drive for regeneration,
0:41:08 > 0:41:10so, as far as they're the concerns,
0:41:10 > 0:41:13the council do actually want to see that space used,
0:41:13 > 0:41:18developed and made to look, you know, fairly pretty, to be honest with you.
0:41:18 > 0:41:21Either we have the opportunity to snap it up,
0:41:21 > 0:41:25or someone else is going to come along and develop it themselves.
0:41:25 > 0:41:28Do you think that you will buy the other plots of land?
0:41:28 > 0:41:30No, I do believe so. I think...
0:41:30 > 0:41:32We currently made an offer on the corner plot which, hopefully,
0:41:32 > 0:41:36over the next couple of days, we'll find out whether it gets accepted.
0:41:36 > 0:41:38If that's the case, that's great.
0:41:38 > 0:41:41The other plot of land, it's a bit more tricky.
0:41:41 > 0:41:43It's going to be a lot more politics behind it,
0:41:43 > 0:41:45and I think, to be honest, that'll be something
0:41:45 > 0:41:48we'll have to have to work with the council on but, if that's the case,
0:41:48 > 0:41:51I think we're in a position of pretty much strength it.
0:41:51 > 0:41:55Then we can then push it forward and pretty much purchase that.
0:41:55 > 0:41:58What sort of budget have you got to build your town house?
0:41:58 > 0:42:00I think we'll do it for under 75 grand.
0:42:00 > 0:42:03Have you got any ideas of what it's going to look like and how much space it'll have?
0:42:03 > 0:42:06Well, the space it's going to have is the space that the land offers,
0:42:06 > 0:42:07it's as simple as that.
0:42:07 > 0:42:10What it'll look like is just dependent on the council.
0:42:10 > 0:42:13We're not building it for ourselves, so whatever they'll pass quickly,
0:42:13 > 0:42:16- we'll build for it.- How many houses in total would you like to build
0:42:16 > 0:42:18on the plots if you get all three of them?
0:42:18 > 0:42:20Ideally, I think we'd like to go for four.
0:42:20 > 0:42:23I think that's the kind of maximum that we're looking.
0:42:23 > 0:42:25Worst-case scenario - you don't get permission,
0:42:25 > 0:42:28you don't build anything, what are you going to do with that plot?
0:42:28 > 0:42:30Flatten it, turf it and have a lovely summer garden.
0:42:30 > 0:42:33- THEY LAUGH - Have a nice picnic?- Yeah.
0:42:33 > 0:42:36Good luck. I can't wait to see what happens and what the outcome is.
0:42:36 > 0:42:38- Thank you very much. Cheers. - Thank you.- Thank you very much.
0:42:40 > 0:42:43Andy and Ben certainly have their work cut out with this,
0:42:43 > 0:42:44their first project.
0:42:44 > 0:42:46Will they achieve the planning?
0:42:46 > 0:42:49Will they purchase the derelict plot of land next door?
0:42:49 > 0:42:53And will we come back to one house, or three, or four houses?
0:42:53 > 0:42:56Will they be left with an expensive parcel of land
0:42:56 > 0:42:58that they can't do anything with?
0:42:58 > 0:43:00So many variables.
0:43:00 > 0:43:03You can find out how the boys get on later in the programme.
0:43:07 > 0:43:09So there you have it, Martin. One property done and dusted.
0:43:09 > 0:43:11Let's see what happened to the others.
0:43:11 > 0:43:13Yes, it's a while since we visited.
0:43:13 > 0:43:14Let's go back.
0:43:18 > 0:43:21First up, it's Stanley in County Durham.
0:43:21 > 0:43:25Earlier we met Noman, a property developer, legal student
0:43:25 > 0:43:27and electrical and gas salesman.
0:43:27 > 0:43:32He bought this tired semi for £13,000 over the guide price.
0:43:32 > 0:43:36However, he didn't intend spending very much more on it.
0:43:36 > 0:43:38He was already juggling several careers,
0:43:38 > 0:43:40lots of properties, as well as studying
0:43:40 > 0:43:45but, even then, it seemed distance was no object for Noman.
0:43:45 > 0:43:46In terms of the country then,
0:43:46 > 0:43:49it seems like you're happy to go anywhere.
0:43:49 > 0:43:51You've got properties in Kettering
0:43:51 > 0:43:53- and...where was this other one you said?- Lowton.- Lowton.
0:43:53 > 0:43:56You were looking at properties in Liverpool and Manchester,
0:43:56 > 0:43:59and you've ended up with somewhere in the Northeast.
0:43:59 > 0:44:01Two months later we're back to find out
0:44:01 > 0:44:04if Noman changed his mind about doing the bare minimum.
0:44:05 > 0:44:08And, from the outside, that looks like a no.
0:44:08 > 0:44:10The only difference in the garden
0:44:10 > 0:44:13is that the weeds might be a bit shorter,
0:44:13 > 0:44:16so no points for added curb appeal.
0:44:16 > 0:44:18Perhaps inside will be better.
0:44:26 > 0:44:30Well, there hasn't been much in the way of changes
0:44:30 > 0:44:31that I can see.
0:44:31 > 0:44:35Noman has been focusing on two other properties that he owns.
0:44:35 > 0:44:38So, how much time has he spent on this property?
0:44:39 > 0:44:41It didn't take me that long
0:44:41 > 0:44:43and I finished it literally even not one day.
0:44:43 > 0:44:48# What a difference a day made
0:44:51 > 0:44:56# 24 little hours... #
0:44:56 > 0:44:58You heard him right - one day.
0:44:58 > 0:45:00And, from what I can see,
0:45:00 > 0:45:03it's not a day that's made much of a difference.
0:45:03 > 0:45:04Could that be
0:45:04 > 0:45:07Homes Under The Hammer's shortest refurbishment?
0:45:07 > 0:45:08Quite possibly.
0:45:08 > 0:45:11Noman did a little research once he'd brought the property
0:45:11 > 0:45:13and he came to the conclusion that,
0:45:13 > 0:45:15having spent so much over the guide price,
0:45:15 > 0:45:18he could lose money if he spent too much,
0:45:18 > 0:45:21so he's kept with the plan to do the bare minimum.
0:45:21 > 0:45:24Instead of lifting up those carpets upstairs,
0:45:24 > 0:45:26Noman chose to clean them,
0:45:26 > 0:45:29and he decided to do some work in the bathroom.
0:45:29 > 0:45:32This is the place where I've done most work actually.
0:45:32 > 0:45:36I painted the ceiling, and I've put new flooring
0:45:36 > 0:45:38and put some silicone where necessary.
0:45:40 > 0:45:44So, Noman has added this new seal and new flooring.
0:45:44 > 0:45:46One day, minimal refurb.
0:45:46 > 0:45:48How much did it cost?
0:45:48 > 0:45:53Even though I decided to upgrade the property,
0:45:53 > 0:45:58I had in my mind that I would spend about £1,000,
0:45:58 > 0:46:02but I didn't want to spend that much really.
0:46:02 > 0:46:07I've spent, I think, 250 including everything.
0:46:07 > 0:46:10That's £250.
0:46:10 > 0:46:11The shortest refurbishment,
0:46:11 > 0:46:14and certainly one of the cheapest I've seen.
0:46:14 > 0:46:18And yes, Noman did have some work done on the garden,
0:46:18 > 0:46:21the only thing that he didn't do himself.
0:46:21 > 0:46:24The greenhouse has gone and the back lawn has been cut
0:46:24 > 0:46:26but already needs another trim.
0:46:26 > 0:46:29Noman is hoping to sell this property on
0:46:29 > 0:46:31but I'm certainly concerned he's not done enough
0:46:31 > 0:46:34to make this house more appealing.
0:46:39 > 0:46:42Two estate agents have come along to give us their thoughts.
0:46:45 > 0:46:47This is my first time in the property.
0:46:47 > 0:46:49After I've had a look around, I think, you know,
0:46:49 > 0:46:51it's a basic refurbishment
0:46:51 > 0:46:52and I don't think he's done too much to it,
0:46:52 > 0:46:56just perhaps a bit of painting on the walls, and that's about it.
0:46:56 > 0:46:59If it was myself, I would have maybe done a bit more of a refurbishment
0:46:59 > 0:47:00to the property, painted it throughout,
0:47:00 > 0:47:02maybe looked at putting in some new flooring,
0:47:02 > 0:47:05and I think I would have tidied up the garden as well.
0:47:05 > 0:47:07I think the standard of the work that's been carried out
0:47:07 > 0:47:10on this property is, um...
0:47:10 > 0:47:14It could have been done to a better standard.
0:47:14 > 0:47:16Noman held back from doing any significant work
0:47:16 > 0:47:22in order to protect his investment of £58,250.
0:47:22 > 0:47:25What could this house achieve on the open market?
0:47:25 > 0:47:27In its current condition,
0:47:27 > 0:47:31I'd be looking to place this property on the market at around £60,000.
0:47:31 > 0:47:35I think if the owner was to place the property on the current market,
0:47:35 > 0:47:41I think he could achieve offers in the region of 60-65,000.
0:47:41 > 0:47:45Yeah, 60-65 that's not bad actually.
0:47:45 > 0:47:50I mean, at least I'm not going to lose any money,
0:47:50 > 0:47:52so I'll be happy if I'll
0:47:52 > 0:47:55be able to achieve even the lower one as well.
0:47:55 > 0:47:58But if I were to achieve the higher one, that's pretty much good.
0:47:58 > 0:48:04That highest valuation of 65,000 would give him a profit of £6,750
0:48:04 > 0:48:07without factoring in taxes, fees or expenses.
0:48:09 > 0:48:10What about rental?
0:48:10 > 0:48:12Would that be a better option?
0:48:12 > 0:48:16The rental value of this property would be £400 per calendar month.
0:48:16 > 0:48:19I think if the owner was to put this property on the rental market,
0:48:19 > 0:48:25I think he could achieve possibly 400-£450 per calendar month.
0:48:25 > 0:48:28If I was the owner of this property,
0:48:28 > 0:48:31I would have spent a bit more money on the property
0:48:31 > 0:48:33bringing it up to a higher standard.
0:48:33 > 0:48:37I would have put it on the rental market for at least 6-12 months
0:48:37 > 0:48:38until the market picks up.
0:48:38 > 0:48:42# A change will do you good... #
0:48:42 > 0:48:45The consensus is that changes were needed here
0:48:45 > 0:48:48to make this house more marketable.
0:48:48 > 0:48:51The agents who first came to see it thought it could have resold
0:48:51 > 0:48:55for £70-£75,000 if renovated.
0:48:56 > 0:49:01Anyway, maybe the change that is needed now is a change in the plan.
0:49:01 > 0:49:03Rental instead of selling on?
0:49:03 > 0:49:07Those figures would give him a really healthy 9% yield.
0:49:07 > 0:49:08Is he tempted?
0:49:09 > 0:49:14Hmm, yeah, if I'd put it on the rental market,
0:49:14 > 0:49:16it might be all right because after paying mortgage
0:49:16 > 0:49:21and all other expenses, I think that should be OK.
0:49:21 > 0:49:25But, you know, I don't have any plan to put it on the rental market.
0:49:25 > 0:49:28# I'm learning how to fall
0:49:28 > 0:49:30# (Learning how to fall)
0:49:30 > 0:49:33# Learning how to take a hit
0:49:33 > 0:49:35# (Learning how to fall.) #
0:49:35 > 0:49:37Noman will have to think about agent's fees
0:49:37 > 0:49:40and other expenses, as well as taxes.
0:49:40 > 0:49:44If he only got the lower valuation, a loss could be on the cards.
0:49:45 > 0:49:49He did only spend a day on this project but his time is scarce.
0:49:49 > 0:49:52He's a busy man with studies, a sales job
0:49:52 > 0:49:54and his property interests.
0:49:54 > 0:49:56How does he feel about this one now?
0:49:56 > 0:50:02I mean, I learned a lot from this property actually, from this project.
0:50:02 > 0:50:03Though I'm running some other project
0:50:03 > 0:50:07and I sold already two properties,
0:50:07 > 0:50:11and I got some profit from that but, from my experience,
0:50:11 > 0:50:13from very short research from this property,
0:50:13 > 0:50:15I think I'm going to lose money from here,
0:50:15 > 0:50:21so in future, it will really, really help me to go ahead with my business
0:50:21 > 0:50:26and I can apply this experience for my future investment.
0:50:33 > 0:50:35It's time to go back to Ramsgate in Kent,
0:50:35 > 0:50:37where business partners Andy and Ben
0:50:37 > 0:50:41had bought this plot of land for £14,500.
0:50:41 > 0:50:44Overgrown and blocked off behind a high wall,
0:50:44 > 0:50:47it wasn't much to look at from the outside
0:50:47 > 0:50:49and neither were the adjacent sites.
0:50:49 > 0:50:54However, accountant Andy and builder Ben had a plan.
0:50:54 > 0:50:57It's big enough to put one house on, so with the price we paid for it,
0:50:57 > 0:50:59we're not going to lose money on what we've bought.
0:51:01 > 0:51:03But this ambitious duo weren't content
0:51:03 > 0:51:05with planning to build one house.
0:51:05 > 0:51:09Oh, no, the guys also had their eye on next door.
0:51:09 > 0:51:12We're looking to buy the two plots at the front of it as well.
0:51:12 > 0:51:16We've made an offer on the corner one, so we're waiting for acceptance on that.
0:51:16 > 0:51:18If we do get all three, there's scope to do something much bigger.
0:51:18 > 0:51:20Ideally, I think we'd like to go for four.
0:51:20 > 0:51:23I think that's the kind of maximum that we're looking.
0:51:23 > 0:51:25Do you think you'll get planning permission for it?
0:51:25 > 0:51:27Oh, yeah, without a doubt.
0:51:27 > 0:51:29If you look round the surrounding area, it's run down,
0:51:29 > 0:51:32and there's a need for housing in Thanet at the moment.
0:51:32 > 0:51:34That's a disused space,
0:51:34 > 0:51:36so I don't see there being any issues with it.
0:51:39 > 0:51:42Now, I've heard of counting chickens before they've hatched
0:51:42 > 0:51:46but these guys were counting them before the eggs had even been laid.
0:51:46 > 0:51:49They were hopeful that a deal for the other two pockets of land
0:51:49 > 0:51:51could be struck quickly.
0:51:51 > 0:51:53Assuming no problems arose with planning,
0:51:53 > 0:51:56they were confident that the development could be complete
0:51:56 > 0:51:58within six months.
0:51:58 > 0:52:02# Don't count your chickens before they hatch... #
0:52:04 > 0:52:06A tad optimistic.
0:52:06 > 0:52:09Well, as it turned out, extremely optimistic.
0:52:11 > 0:52:14Fast forward not one, not two,
0:52:14 > 0:52:16not three, but almost 4 years.
0:52:25 > 0:52:29There are now two very smart town houses sitting side by side.
0:52:29 > 0:52:31On the original plot bought at auction
0:52:31 > 0:52:33sits this lovely two-storey house.
0:52:33 > 0:52:35And on the plot bought later on,
0:52:35 > 0:52:38there's a fantastic three-storey town house.
0:52:38 > 0:52:40The other plot remains undeveloped.
0:52:42 > 0:52:46Basically, the back lot of the two-storey unit we bought at auction
0:52:46 > 0:52:49and then after we came down and looked at the site
0:52:49 > 0:52:52There were two other plots at the front of the site,
0:52:52 > 0:52:56so we pursued both of them, bought the one that we're in now,
0:52:56 > 0:52:59which was a plot big enough for one three-storey unit,
0:52:59 > 0:53:01for real estate,
0:53:01 > 0:53:04pursued the other one and obviously wasn't so lucky with that one,
0:53:04 > 0:53:07so kind of...just kind of started the build with the two.
0:53:09 > 0:53:12Not only did the land purchase cause delays
0:53:12 > 0:53:16but the planning consent also proved to be a long, drawn-out process.
0:53:17 > 0:53:20It was a bit more problematic than we first anticipated
0:53:20 > 0:53:22because we're in a conservation area.
0:53:22 > 0:53:24The big, three-storey house
0:53:24 > 0:53:27at the front's fronting the high street approach,
0:53:27 > 0:53:29so conservation had quite a lot to do with it.
0:53:29 > 0:53:32We had to resubmit the plans quite a few times.
0:53:32 > 0:53:35Um, and eventually, it panned out economically, so we started.
0:53:39 > 0:53:43Oh, dear, this just reinforces that you can't assume anything
0:53:43 > 0:53:44when it comes to planning.
0:53:44 > 0:53:47Just because an area looks neglected doesn't mean planners
0:53:47 > 0:53:49will let you do what you like.
0:53:49 > 0:53:52And in fact, maybe a good question to have asked was
0:53:52 > 0:53:55why have the plots remained undeveloped for so long?
0:53:56 > 0:54:00Delays aside, the actual building process has taken only five months
0:54:00 > 0:54:03and the results are impressive.
0:54:03 > 0:54:05Let's take a closer look inside.
0:54:11 > 0:54:15The layouts in both houses are simple and functional.
0:54:15 > 0:54:17The living room and kitchen are on the ground floor,
0:54:17 > 0:54:21with the addition of a small loo positioned under the stairs,
0:54:21 > 0:54:23always handy to have.
0:54:23 > 0:54:27The kitchens have French doors that open out onto the garden space.
0:54:28 > 0:54:29In the two-storey house,
0:54:29 > 0:54:34the first floor contains two double bedrooms and a family bathroom.
0:54:36 > 0:54:40The three-storey house can afford a large first-floor bedroom
0:54:40 > 0:54:44and a bigger bathroom, plus a roomy storage area on the landing.
0:54:48 > 0:54:50A further two bedrooms are on the second floor,
0:54:50 > 0:54:52with a wet room in-between.
0:54:55 > 0:54:58Both houses are fitted out with high-spec kitchens,
0:54:58 > 0:54:59wood-effect flooring,
0:54:59 > 0:55:02and workshops complement the white units and tiling.
0:55:03 > 0:55:06Equally well furnished are the bathrooms.
0:55:08 > 0:55:10But it's not all conformity.
0:55:10 > 0:55:13There's an interesting contrast of glazing units -
0:55:13 > 0:55:15white in the three-storey house
0:55:15 > 0:55:19and these rather natty black framed windows in the two-storey.
0:55:20 > 0:55:22Now that the job is complete,
0:55:22 > 0:55:24how does Ben feel about the development?
0:55:26 > 0:55:28I think they look really nice from the outside,
0:55:28 > 0:55:30and they fit well and flow well.
0:55:30 > 0:55:32The inside is really nice as well.
0:55:32 > 0:55:34We've had a lot of support from the locals
0:55:34 > 0:55:36and residents living round here
0:55:36 > 0:55:39saying how lovely the scheme looks and how pleased they are that we've done it.
0:55:41 > 0:55:43The original budget was all dependent
0:55:43 > 0:55:45on what land they managed to get.
0:55:45 > 0:55:49Andy and Ben bought the plot at auction for £14,500,
0:55:49 > 0:55:51and then bought another plot,
0:55:51 > 0:55:55bringing the land buying total to £50,000.
0:55:55 > 0:55:59They've built two lovely houses with a combined build cost
0:55:59 > 0:56:02coming in at £170,000.
0:56:02 > 0:56:06All in they spent 220,000.
0:56:06 > 0:56:08However, they say time is money.
0:56:08 > 0:56:11And this project has been three years and nine months in the making.
0:56:11 > 0:56:13Has it all been worth it?
0:56:16 > 0:56:19We asked two local property experts to come along
0:56:19 > 0:56:22and appraise the value of these two houses.
0:56:24 > 0:56:27I really like the standard of the finish on both the properties.
0:56:27 > 0:56:29It's a very high-spec for this particular area.
0:56:29 > 0:56:31It's a finish you would expect to see
0:56:31 > 0:56:33maybe on a higher-end property.
0:56:33 > 0:56:37The properties will appeal to people like first-time buyers
0:56:37 > 0:56:38who want to live here,
0:56:38 > 0:56:41or they'd be ideal for the rental market.
0:56:41 > 0:56:44They'd rent out very well.
0:56:44 > 0:56:45Unanimous approval there.
0:56:45 > 0:56:49The estate agents were also of one mind when it came to valuation.
0:56:49 > 0:56:54They felt the two-bedroom house would be worth around 150,000
0:56:54 > 0:56:58and the three-bedroom could achieve £165,000.
0:56:58 > 0:57:01Ha. But Ben, well, he's one step ahead.
0:57:03 > 0:57:05I think they're in the process of being sold
0:57:05 > 0:57:09for around about 300,000 combined value but Andy's got the figures -
0:57:09 > 0:57:12I don't have them with me today - and knows more about that.
0:57:16 > 0:57:20So, if that sale goes through, there's an £80,000 profit
0:57:20 > 0:57:24from this two-house project minus the usual fees and taxes.
0:57:24 > 0:57:28Does Ben have any final advice to share from this experience?
0:57:30 > 0:57:33Yeah, investigate the local planning law and conservation,
0:57:33 > 0:57:34and things like that.
0:57:34 > 0:57:37It was quite a hindrance obviously not being able to do them
0:57:37 > 0:57:40straightaway when we bought them. We thought it would be...
0:57:40 > 0:57:42Always knew there would be a 12-week planning lead on it,
0:57:42 > 0:57:46but two or three years is a lot longer than 12 weeks.
0:57:49 > 0:57:52Well, we've seen lots of hard work and determination
0:57:52 > 0:57:53in today's properties.
0:57:53 > 0:57:54Yes, but for some buyers,
0:57:54 > 0:57:57the hard work is only just beginning.
0:57:57 > 0:58:00Join us next time for more properties from the auctions here
0:58:00 > 0:58:02- on Homes Under The Hammer. - See you then.
0:58:02 > 0:58:03- Goodbye.- Goodbye.