0:00:02 > 0:00:05Hello. Over the years, Lucy and I have met thousands of people
0:00:05 > 0:00:07who've decided that investing in property
0:00:07 > 0:00:10- is what they want to do with their money.- That's right.
0:00:10 > 0:00:14Good investing in property starts with buying wisely.
0:00:14 > 0:00:16One way you might be able to do that
0:00:16 > 0:00:20and get property at a good price is by visiting your local auction.
0:00:46 > 0:00:49Now, people buy properties for all sorts of reasons -
0:00:49 > 0:00:51to provide a rental income,
0:00:51 > 0:00:54possibly as part of a pension or as somewhere to live.
0:00:54 > 0:00:56So what were the stories behind the properties
0:00:56 > 0:00:58that went to auction today?
0:00:59 > 0:01:01It's emotional at the auction
0:01:01 > 0:01:04as this buyer in London feels the pressure.
0:01:04 > 0:01:08Bit nervous on the day itself but managed to grab what I wanted.
0:01:10 > 0:01:13The thrill of the auction floor entices one developer
0:01:13 > 0:01:15back into the game in Staffordshire.
0:01:15 > 0:01:19There is quite a buzz there. You can get a bargain.
0:01:19 > 0:01:22And find out why it all gets a little too much
0:01:22 > 0:01:25for this developer in Cornwall.
0:01:25 > 0:01:29- The auction.- Yes. Didn't sleep for a few nights before.- Right.
0:01:31 > 0:01:34All these properties have been sold at auction.
0:01:34 > 0:01:37We'll find out who bought them and what they paid for them
0:01:37 > 0:01:39when they went under the hammer.
0:01:44 > 0:01:46Today, I'm in the residential suburb of Edgware
0:01:46 > 0:01:50in the Borough of Barnet in north-west London.
0:01:50 > 0:01:53It's brimming with stylish cafes, restaurants and shops
0:01:53 > 0:01:56and combined with those all-important transport links
0:01:56 > 0:02:00to London, Edgware is an attractive place to invest in property.
0:02:05 > 0:02:08Not far from some very good shopping along the high street
0:02:08 > 0:02:10and you have Burnt Oak Broadway.
0:02:10 > 0:02:13It's the property I'm here to see, so what have we got?
0:02:13 > 0:02:17Well, it's a three-bedroom ground floor purpose-built flat
0:02:17 > 0:02:20in this rather pleasant cul-de-sac with good links to the M1
0:02:20 > 0:02:24and not far from Edgware Northern line into central London.
0:02:24 > 0:02:26Sounds promising.
0:02:31 > 0:02:33Through the main communal entrance
0:02:33 > 0:02:36and it's just a short walk to get to your own front door.
0:02:36 > 0:02:39Most other flats here only have two bedrooms
0:02:39 > 0:02:41but the one I'm going to look at
0:02:41 > 0:02:43on the corner of the building here has three.
0:02:43 > 0:02:47And the guide price - £160,000 plus.
0:02:50 > 0:02:52These flats were built in the '60s
0:02:52 > 0:02:55and I like this end location of this one.
0:02:55 > 0:02:58You've got this long corridor with loads of rooms off -
0:02:58 > 0:03:01bedroom, another bedroom.
0:03:01 > 0:03:04Got the kitchen here, a bathroom, another bedroom
0:03:04 > 0:03:07and then right the way through into the lounge.
0:03:07 > 0:03:10As I guessed, no beautiful fireplaces,
0:03:10 > 0:03:12no ceiling roses or cornices
0:03:12 > 0:03:16but you have got masses of practical space that really does work.
0:03:16 > 0:03:18Look, big, square rooms.
0:03:18 > 0:03:21You've got a door leading out to the front so you could use that
0:03:21 > 0:03:24or of course the main entrance.
0:03:24 > 0:03:26It certainly needs modernising in here but you can't extend it
0:03:26 > 0:03:30or change the look too much as it's part of the uniform block
0:03:30 > 0:03:34but don't forget, it's got three bedrooms, which is a real bonus.
0:03:43 > 0:03:46It really does look as though this place hasn't had much done to it
0:03:46 > 0:03:49since the 1960s when it was built.
0:03:51 > 0:03:54There are still lots of little telltale signs from the period
0:03:54 > 0:03:56in its fixtures and fittings.
0:03:56 > 0:04:00This does of course mean you'll have to go for a full rewire,
0:04:00 > 0:04:02probably new central heating
0:04:02 > 0:04:06and, really, a full-scale modernisation plan.
0:04:06 > 0:04:08You might not be able to do much to it structurally
0:04:08 > 0:04:10but it's a great layout as it is.
0:04:10 > 0:04:13You really do have a blank canvas here.
0:04:13 > 0:04:17I was talking earlier about how practical a flat like this is.
0:04:17 > 0:04:20One of the positives here is that every single floor,
0:04:20 > 0:04:24apart from the kitchen and bathroom, has this solid parquet floor.
0:04:24 > 0:04:28Now, I know it will look totally different once it's been sanded,
0:04:28 > 0:04:30stained and polished.
0:04:30 > 0:04:32I even painted my own floor a parquet floor
0:04:32 > 0:04:35a whitewash and let the grain come through.
0:04:35 > 0:04:39It looked fabulous and it really did add value.
0:04:41 > 0:04:44Another bonus with this flat is that the entire plot
0:04:44 > 0:04:47is surrounded by some really well maintained gardens.
0:04:50 > 0:04:53You'll have to factor in costs for the upkeep of the grounds
0:04:53 > 0:04:56but luckily here, the communal service charge
0:04:56 > 0:05:00is relatively low - around £350 per year.
0:05:00 > 0:05:03All in all, I think this is a great little flat in a great area
0:05:03 > 0:05:07with that all-important easy access to central London.
0:05:09 > 0:05:14I reckon you need around £20,000 to refurbish it to a high standard
0:05:14 > 0:05:17but what sort of return might you expect on your investment?
0:05:17 > 0:05:20Let's ask a local property expert.
0:05:22 > 0:05:25My first impressions of the property are it's very dated.
0:05:25 > 0:05:28Obviously in need of complete modernisation.
0:05:28 > 0:05:34It's a very spacious property. Fantastic quiet cul-de-sac location.
0:05:34 > 0:05:38Very safe and it will be a fantastic property once it's refurbished.
0:05:38 > 0:05:41The positive things about this property is the excellent size.
0:05:41 > 0:05:45You've got three good-sized bedrooms, a nice big kitchen,
0:05:45 > 0:05:49excellent-sized bathroom and it's very close to the tube station.
0:05:49 > 0:05:52Once this property is refurbished, on the sales market,
0:05:52 > 0:05:57it should achieve somewhere in the region of £300,000-£310,000.
0:05:57 > 0:06:00On the rentals market, this property should achieve
0:06:00 > 0:06:03somewhere in the region of £1,400 per calendar month.
0:06:04 > 0:06:08With this, you get a solid, well-built property with no frills
0:06:08 > 0:06:11but in a Greater London location like this,
0:06:11 > 0:06:13it's going to be a popular lot, I'm sure.
0:06:13 > 0:06:16Let's see who was bidding on the day.
0:06:17 > 0:06:21Lot 59 is a three-bed flat.
0:06:21 > 0:06:25Start 150 on this.
0:06:25 > 0:06:30150 with you. 155. 155.
0:06:30 > 0:06:35160. 165. Take it in front. 165.
0:06:35 > 0:06:38170. 175. 180.
0:06:38 > 0:06:41As you can see, this property was in demand.
0:06:41 > 0:06:45We rejoin the bidding at £240,000.
0:06:45 > 0:06:48240 with the catalogue. 245 with the phone.
0:06:48 > 0:06:51250. 255.
0:06:51 > 0:06:56255. 260. 260. 265.
0:06:56 > 0:07:00270. 275.
0:07:00 > 0:07:04280. 280. Yes? No?
0:07:04 > 0:07:06275 with you.
0:07:06 > 0:07:11280 in the check shirt? 275.
0:07:11 > 0:07:16Gent has been there all the time. 275 first time.
0:07:16 > 0:07:17Second time.
0:07:17 > 0:07:20Third and last time, if you're all done.
0:07:20 > 0:07:22Sold at 275.
0:07:24 > 0:07:29And after that dogfight, it was Raqesh who finally won the day.
0:07:31 > 0:07:33By day, he works as a dry cleaner
0:07:33 > 0:07:35but he has also been developing property
0:07:35 > 0:07:40along with his parents and his wife since 2002.
0:07:40 > 0:07:43The family have a portfolio of properties which they rent out
0:07:43 > 0:07:48but Raqesh's plans for this flat are to sell it on for a decent profit.
0:07:49 > 0:07:51- Raqesh, congratulations. - Thank you very much.- Well done.
0:07:51 > 0:07:55So, how do you feel now? You've got the flat you wanted on auction day.
0:07:55 > 0:07:56Yes, very excited.
0:07:56 > 0:08:01Bit nervous on the day itself but I managed to grab what I wanted.
0:08:01 > 0:08:03So for you, the interesting thing
0:08:03 > 0:08:07is you burst through the stamp duty threshold of £250,000
0:08:07 > 0:08:10- and you paid £275,000! - That's correct.
0:08:10 > 0:08:13So now, most people, I would've assumed,
0:08:13 > 0:08:16would have gone up to £250,000 with this flat and then pulled out.
0:08:16 > 0:08:19My aim was £250,000 itself.
0:08:19 > 0:08:22I did get carried away but I think...
0:08:22 > 0:08:26I did a lot of research before I came for this property itself.
0:08:26 > 0:08:29I came here three times, brought the builders,
0:08:29 > 0:08:31had the legal pack in my hand as well
0:08:31 > 0:08:36so it was a point where I just didn't want to let go of it.
0:08:36 > 0:08:40So you just wanted to make sure you bought something on the day?
0:08:40 > 0:08:43Absolutely. My wife was a bit shocked afterwards, obviously.
0:08:43 > 0:08:46I told her I'd just spent £275,000.
0:08:46 > 0:08:48"And now I've got to spend 3% stamp duty."
0:08:48 > 0:08:52Yes, absolutely. But she was over the moon at the same time as well.
0:08:52 > 0:08:57# I want you, I want you
0:08:57 > 0:09:00# Yes, I want you so bad... #
0:09:00 > 0:09:03Raqesh is delighted,
0:09:03 > 0:09:06especially as he was not the only one that wanted the property.
0:09:06 > 0:09:08He could have made an immediate profit
0:09:08 > 0:09:09as a rival bidder for the property
0:09:09 > 0:09:14offered him another 25 grand on the spot to just flip it -
0:09:14 > 0:09:16a very tempting offer indeed.
0:09:16 > 0:09:18But you weren't interested?
0:09:18 > 0:09:21I wasn't because I really fell in love with this.
0:09:21 > 0:09:25I wanted to renovate it and I will see after...once this it's all done.
0:09:25 > 0:09:27He's given me his contact.
0:09:27 > 0:09:30He's still interested and we'll speak once it's all ready.
0:09:30 > 0:09:33So tell me what you're going to do to this property to improve it.
0:09:33 > 0:09:39OK. We're going to renovate the complete new kitchen, bathroom.
0:09:39 > 0:09:43Obviously remove all the wallpaper off the walls
0:09:43 > 0:09:48and redecorate the whole area. New gas boiler in the storage cupboard.
0:09:48 > 0:09:51And make it to a higher standard itself.
0:09:52 > 0:09:54And take it and see how it goes.
0:09:58 > 0:10:01As you might expect from a seasoned property developer,
0:10:01 > 0:10:04Raqesh has a team of trusted builders ready
0:10:04 > 0:10:06and willing to start the job immediately.
0:10:06 > 0:10:08He has a budget of £15,000
0:10:08 > 0:10:11and hopes to have the refurbishment finished
0:10:11 > 0:10:12in around four to five weeks.
0:10:14 > 0:10:17He plans to make use of that little redundant area
0:10:17 > 0:10:19currently housing the big old water tank
0:10:19 > 0:10:21to increase the size of the kitchen
0:10:21 > 0:10:24and that will certainly improve the appeal of the flat
0:10:24 > 0:10:25but what I want to know
0:10:25 > 0:10:29is what's he going to do with that fabulous parquet flooring?
0:10:31 > 0:10:34We were thinking of actually sanding that down
0:10:34 > 0:10:37and reusing the whole flooring.
0:10:37 > 0:10:41But we haven't decided as yet what we would want to do with the floor.
0:10:41 > 0:10:42- It is everywhere.- It is. Yes.
0:10:42 > 0:10:44You've got parquet flooring throughout the whole flat,
0:10:44 > 0:10:46which is incredible.
0:10:46 > 0:10:49It is, yes, so we'll see as we go along with the renovation.
0:10:49 > 0:10:51It doesn't smell of damp.
0:10:51 > 0:10:53Cos that's something that I have to walk around
0:10:53 > 0:10:55- and think, "Is there any damp?" It just smells musty.- It does.
0:10:55 > 0:10:59- Do you think that's just lack of air flow?- Yeah, absolutely. I think...
0:10:59 > 0:11:02We're going to have it checked out whether there is damp or not
0:11:02 > 0:11:06but I think it is just really condensation in the property itself.
0:11:11 > 0:11:14Well, not having any damp to deal with certainly
0:11:14 > 0:11:16saves on the renovation costs
0:11:16 > 0:11:19but Raqesh has talked about a high-spec finish
0:11:19 > 0:11:22so I'm keen to find out what plans he has up his sleeve
0:11:22 > 0:11:24for decor and colour schemes.
0:11:26 > 0:11:30- It's going to be pure white.- Pure white?- Pure white.- Not magnolia.
0:11:30 > 0:11:34- Not magnolia.- Not an off-white. - Absolutely.- Pure white? Lovely.
0:11:34 > 0:11:38That's how all my flats I have renovated to that standard.
0:11:38 > 0:11:39What about the kitchen?
0:11:39 > 0:11:42The kitchen, again, we're going to have gloss white in the kitchen
0:11:42 > 0:11:46to a high spec, and the same with the bathroom.
0:11:46 > 0:11:48We've already picked out a colour.
0:11:48 > 0:11:51- In fact, I have an interior designer with us on board.- Wow.
0:11:51 > 0:11:54- So I'm expecting big things, Raqesh.- Absolutely.
0:11:54 > 0:11:57- I'm expecting a bit of a wow factor when I walk in the door.- Absolutely.
0:11:57 > 0:11:59- Well, good luck with this property. - Thank you.
0:11:59 > 0:12:02I'm excited to see the interior design swishiness of it
0:12:02 > 0:12:03and congratulations.
0:12:03 > 0:12:05Thank you very much.
0:12:06 > 0:12:09Raqesh really did his research with this property
0:12:09 > 0:12:11before spending £275,000,
0:12:11 > 0:12:14and breaking through that stamp duty threshold,
0:12:14 > 0:12:18and he did all that without telling his wife.
0:12:18 > 0:12:21Still, he fell in love with this property and with £15,000
0:12:21 > 0:12:25and an interior designer, he is going to turn this place around.
0:12:25 > 0:12:27Join me later on in the programme
0:12:27 > 0:12:30and you can find out how good it looks.
0:12:37 > 0:12:41This is Newcastle-under-Lyme, in Staffordshire,
0:12:41 > 0:12:45a pretty market town sitting right next door to Stoke.
0:12:49 > 0:12:52The market here dates back to the 12th century.
0:12:52 > 0:12:55With Manchester and Birmingham less than an hour's drive away,
0:12:55 > 0:12:58this is a popular area for commuters.
0:13:00 > 0:13:02Just a couple of miles from the town centre,
0:13:02 > 0:13:06in this popular residential area, is the property I'm here to see.
0:13:06 > 0:13:09Before I even get there, one slight note of caution -
0:13:09 > 0:13:11it's right opposite a pub.
0:13:11 > 0:13:14That could throw up a few issues in terms of noise and resale values.
0:13:14 > 0:13:18Not everyone likes living so close to such an amenity.
0:13:18 > 0:13:21The property itself, though, sounds pretty good.
0:13:21 > 0:13:26Three bedrooms, semidetached and a guide price of £80,000 plus.
0:13:26 > 0:13:28Hmm. Got to be worth a look.
0:13:28 > 0:13:33# We're going down the pub... #
0:13:34 > 0:13:37There are so many plus points already for this house.
0:13:37 > 0:13:39It looks in great condition
0:13:39 > 0:13:43and it's near the sought-after Seabridge and Clayton areas
0:13:43 > 0:13:44of Newcastle-under-Lyme
0:13:44 > 0:13:48where houses can sell for half a million pounds.
0:13:51 > 0:13:53Useful little porch. We like that.
0:13:53 > 0:13:55If there was any noise from the pub
0:13:55 > 0:13:59then it would certainly be slightly kept down by having that
0:13:59 > 0:14:01but very traditional layout.
0:14:01 > 0:14:03The moment you walk through the door,
0:14:03 > 0:14:05stairs up there to your bedrooms and bathroom
0:14:05 > 0:14:07and then little corridor leading to...
0:14:07 > 0:14:09Well, let's find out.
0:14:09 > 0:14:12Front living room area there, looks to be in pretty decent nick.
0:14:12 > 0:14:14Um...yeah.
0:14:14 > 0:14:18It's not sparkling-sparkling but it's not at all bad.
0:14:18 > 0:14:20Same news when you walk into the kitchen.
0:14:20 > 0:14:22This is a really nice space.
0:14:22 > 0:14:25It's a sort of kitchen stroke...
0:14:25 > 0:14:27I'd like to think family area there.
0:14:27 > 0:14:30Maybe even better if you put French doors in through
0:14:30 > 0:14:33where those windows currently are.
0:14:33 > 0:14:35But obviously, it hasn't been updated in a while
0:14:35 > 0:14:38so lots of chance to add value. We like that.
0:14:38 > 0:14:42And as a starting point, yeah, it's doing pretty good.
0:14:43 > 0:14:47# Things could be marvellous soon... #
0:14:47 > 0:14:50Upstairs, there are two reasonably-sized bedrooms,
0:14:50 > 0:14:54a larger bedroom and thankfully an upstairs bathroom,
0:14:54 > 0:14:59showing a sign or two of damp possibly but not too bad.
0:14:59 > 0:15:02It's all tying into place and given the location,
0:15:02 > 0:15:05it's looking like a great family home to me.
0:15:05 > 0:15:07Time to look for that all-purpose family garden.
0:15:07 > 0:15:11So, at the back of the property, confirming its status
0:15:11 > 0:15:14as a really good family home, a decent-sized garden.
0:15:14 > 0:15:17Now, at the moment, obviously the grass could do with a bit of mow
0:15:17 > 0:15:20but apart from that, you can see a few hours in here
0:15:20 > 0:15:23would make a big difference and good news
0:15:23 > 0:15:25that the leylandii over there
0:15:25 > 0:15:28are at least a decent distance away from the drains.
0:15:28 > 0:15:30Otherwise, that would be a problem.
0:15:30 > 0:15:33So as I said, all in all, just adds to the appeal of the place.
0:15:35 > 0:15:38Well, I'm already quite excited about this place
0:15:38 > 0:15:41but it seems to be a house that just keeps on giving.
0:15:44 > 0:15:47At the front of the property, a bit of a garden
0:15:47 > 0:15:52and off-street parking, which is a big bonus. However, there is more.
0:15:52 > 0:15:57A little bit of a surprise because next to the next-door property,
0:15:57 > 0:16:00you have also got a single garage.
0:16:00 > 0:16:01Bonus!
0:16:04 > 0:16:07On first impressions, this place gets ten out of ten.
0:16:07 > 0:16:11Three bedrooms, a garden, the garage.
0:16:11 > 0:16:14It has potential to be a great family home.
0:16:16 > 0:16:17But what about the area?
0:16:17 > 0:16:20We asked a local estate agent to come and look at the property
0:16:20 > 0:16:23and give us the lowdown on the neighbourhood.
0:16:25 > 0:16:29The local area, Clayton, is really close to Newcastle-under-Lyme.
0:16:29 > 0:16:33The commuter links obviously take you to the M6 in no time.
0:16:33 > 0:16:35Local amenities are fantastic.
0:16:35 > 0:16:38There's shops, pubs, hairdressers
0:16:38 > 0:16:41and of course local schools are really well-regarded as well.
0:16:44 > 0:16:49That's top marks for the area, then, but what about the property itself?
0:16:49 > 0:16:52Ideally, I'd like to see the kitchen and bathroom refreshed
0:16:52 > 0:16:57and replaced and just good level of decoration throughout
0:16:57 > 0:16:59and that's all it needs, really, I think.
0:17:00 > 0:17:04So it's all good news on the location, the property's layout
0:17:04 > 0:17:06and its condition.
0:17:06 > 0:17:09How much does he think it will be worth on the open market?
0:17:09 > 0:17:12I think this property, once renovated,
0:17:12 > 0:17:16would quite easily be worth £145,000.
0:17:16 > 0:17:17Wow! That could mean
0:17:17 > 0:17:21if you bought it for anything like that £80,000 guide price
0:17:21 > 0:17:23then even with refurbishment costs,
0:17:23 > 0:17:27there could be quite possibly a handsome profit in it.
0:17:27 > 0:17:30Suppose you weren't interested in resale, though,
0:17:30 > 0:17:33but wanted to rent it out. What could you get for it?
0:17:33 > 0:17:35If I were to place the property on the rental market,
0:17:35 > 0:17:39I'd expect to achieve £625 per calendar month.
0:17:40 > 0:17:43What do you think? I think this is a great little property.
0:17:43 > 0:17:47Not too much work to be done but you could really add value to it.
0:17:47 > 0:17:50A perfect auction purchase.
0:17:50 > 0:17:52Let's see who bought it when it went under the hammer.
0:17:52 > 0:17:56Lot 13, Newcastle-under-Lyme now.
0:17:56 > 0:17:59It's a three-bedroom semidetached house.
0:17:59 > 0:18:00It is in need of modernisation.
0:18:00 > 0:18:06Get it going at 75. 75 bid. Thank you. At £75,000.
0:18:06 > 0:18:0880 anywhere? At 75.
0:18:08 > 0:18:1180 left now. At £80,000. 85?
0:18:12 > 0:18:15One, you're saying. 81. 82?
0:18:15 > 0:18:1882. 83. 84.
0:18:18 > 0:18:22Slow to start, this sale picked up speed and we rejoin it
0:18:22 > 0:18:25when the bidding reached £105,000.
0:18:26 > 0:18:31105 on the phone. 105. 106. 107?
0:18:34 > 0:18:38No? At 106. Under the sign at 106. 107 anywhere else?
0:18:39 > 0:18:42If not, £106,000.
0:18:42 > 0:18:45107.
0:18:45 > 0:18:51108? 108. 109. Shaking his head.
0:18:51 > 0:18:53109 back to you in the aisle, sir.
0:18:53 > 0:18:55£109,000.
0:18:55 > 0:18:58110 anywhere else?
0:18:58 > 0:19:02If not, £109,000 once. £109,000 twice.
0:19:02 > 0:19:04Third and final time.
0:19:04 > 0:19:07£109,000.
0:19:07 > 0:19:09Bought it in the aisle. Well done.
0:19:09 > 0:19:13The successful bid of £109,000 was made by Kevin,
0:19:13 > 0:19:17who has only recently got back into property development
0:19:17 > 0:19:19after a ten-year break.
0:19:19 > 0:19:21I met up with him back in the house.
0:19:21 > 0:19:23Kevin, great to meet you.
0:19:23 > 0:19:26- Nice to meet you. - Congratulations.- Thank you.
0:19:26 > 0:19:28So why did you want to buy this place?
0:19:28 > 0:19:30It's a really nice neighbourhood
0:19:30 > 0:19:34and just come up at the right price at the right time, really
0:19:34 > 0:19:36- so an investment for the future. - Right.
0:19:36 > 0:19:39What was it about the house particularly that appealed?
0:19:39 > 0:19:43It looked in pretty good condition other than a few cosmetic bits.
0:19:43 > 0:19:46I know it had been previously rented out
0:19:46 > 0:19:50- and it just looked in pretty good condition, really.- So location.
0:19:50 > 0:19:53Yeah, it's a very good road.
0:19:53 > 0:19:56The top end of Seabridge, they fetch half a million pounds plus
0:19:56 > 0:19:58so yeah, it's a very nice neighbourhood.
0:19:58 > 0:20:01However, the house itself is right opposite a pub.
0:20:01 > 0:20:03Does that bother you at all?
0:20:03 > 0:20:05No. I did actually speak to some of the neighbours
0:20:05 > 0:20:08and they said at closing time, it's very, very quiet.
0:20:08 > 0:20:11- It's a very respectable pub. - Right, that's good.
0:20:11 > 0:20:14- # What a good place to be... # - So no worries about the pub.
0:20:14 > 0:20:16Kevin has done his homework.
0:20:16 > 0:20:17# It's happy hour again... #
0:20:17 > 0:20:21Not surprising given that he used to combine property development
0:20:21 > 0:20:23with his day job as a sales rep
0:20:23 > 0:20:27before the recession put brakes on his part-time business.
0:20:27 > 0:20:28But now he's back.
0:20:28 > 0:20:31He has four properties already on the rental market
0:20:31 > 0:20:34and this will be his fifth, all bought at auction.
0:20:36 > 0:20:38Three I purchased on auction night
0:20:38 > 0:20:40and the other two were done the following day
0:20:40 > 0:20:42because it didn't hit reserves.
0:20:42 > 0:20:45I like the fact that you can...there is quite a buzz there
0:20:45 > 0:20:47and you can get a bargain.
0:20:47 > 0:20:50So this one, then, what are you going to do to it?
0:20:50 > 0:20:54Cosmetically, it looks fairly clean
0:20:54 > 0:20:56but it does need...every room needs repainting.
0:20:56 > 0:21:00The bathroom needs completely ripping out. That's very old-fashioned.
0:21:00 > 0:21:03Also, the kitchen is probably 1960s and not been touched yet
0:21:03 > 0:21:07so that needs ripping out. There's a window going out into the garden.
0:21:07 > 0:21:11I want put some French doors in there so it blends itself into the garden.
0:21:11 > 0:21:14It's south-facing as well and it's got a nice patio area
0:21:14 > 0:21:17- so it could be a very nice little family home.- Yeah.
0:21:17 > 0:21:21- And the garden is not massive but copable with.- Manageable, yeah.
0:21:21 > 0:21:24Apart from installing the French doors,
0:21:24 > 0:21:28Kevin isn't planning any major structural changes to the house.
0:21:28 > 0:21:31However, the living room is missing a key feature.
0:21:31 > 0:21:34Is he going to do anything to that empty fireplace?
0:21:34 > 0:21:37Being a rental, I'd probably actually just leave it
0:21:37 > 0:21:40and let the tenants do that if they want to put something in there,
0:21:40 > 0:21:42an artificial fire or something,
0:21:42 > 0:21:45but, yeah, it's an expense I don't really need, I suppose.
0:21:48 > 0:21:51Spoken like a true property developer.
0:21:54 > 0:21:57With a possible monthly rental of around £600,
0:21:57 > 0:22:01Kevin is happy to add this house to his portfolio
0:22:01 > 0:22:05but he always has one eye on the local sale prices.
0:22:06 > 0:22:13# By 11 o'clock, I'll be bringing that money home... #
0:22:13 > 0:22:14There's one just up the road for sale,
0:22:14 > 0:22:16the same house for quite a bit more.
0:22:16 > 0:22:19- How much more, do you know? - It's 155.- Wow.
0:22:19 > 0:22:23- It's next door but one. - And you paid...?- 109.- 109.
0:22:23 > 0:22:26Well, if he ends up with a house worth that much,
0:22:26 > 0:22:28this looks like a bit of a bargain.
0:22:28 > 0:22:32Kevin has set aside a budget of £7,000 for this upgrade
0:22:32 > 0:22:35and plans to have the job finished in six weeks,
0:22:35 > 0:22:37carrying out a lot of the work himself
0:22:37 > 0:22:40so I expect he'll be keen to get cracking.
0:22:42 > 0:22:45I'm off to California... I'm going down to Gatwick this evening.
0:22:45 > 0:22:46Oh, wow.
0:22:46 > 0:22:50An early morning flight to Vegas followed by a trip
0:22:50 > 0:22:54down the Pacific Coast to LA, San Francisco and San Diego.
0:22:54 > 0:22:56What a great trip. So you've just bought a house
0:22:56 > 0:22:59and you're disappearing off for how many weeks?
0:22:59 > 0:23:01Three weeks off. Can't wait.
0:23:01 > 0:23:04- Good luck with that and good luck with the house.- Thank you.
0:23:04 > 0:23:07It will be interesting to see what you do to it.
0:23:07 > 0:23:08- Nice to meet you. - Thank you.
0:23:08 > 0:23:13# California dreaming California dreaming... #
0:23:13 > 0:23:16Well, I think Kevin has chosen well with this place
0:23:16 > 0:23:19to add it to his property portfolio.
0:23:19 > 0:23:21Budget seems fine but that timescale,
0:23:21 > 0:23:24will it be affected by his California dreaming?
0:23:24 > 0:23:26You can find out later in the show.
0:23:28 > 0:23:31Still to come, is the price of this cottage in Cornwall
0:23:31 > 0:23:32too good to be true?
0:23:32 > 0:23:37Just £40,000. So what's the catch?
0:23:39 > 0:23:42There are unforeseen developments in Staffordshire
0:23:42 > 0:23:43that are close to home.
0:23:43 > 0:23:47My stepdaughter suddenly decided they wanted somewhere else to live.
0:23:54 > 0:23:58We return now to Edgware in north-west London where earlier,
0:23:58 > 0:24:01I looked round this three-bed ground floor flat
0:24:01 > 0:24:04which had a guide price of £160,000.
0:24:07 > 0:24:09After a real battle on auction day,
0:24:09 > 0:24:14it was eventually bought by Raqesh for £275,000,
0:24:14 > 0:24:18115 grand over the guide price.
0:24:18 > 0:24:21If he was in the least bit worried he may have gone over the top,
0:24:21 > 0:24:25something happened that reassured him right away at the auction.
0:24:25 > 0:24:31A rival bidder offered him £25,000 on the spot to flip it.
0:24:31 > 0:24:35But seasoned developer Raqesh was determined to see this one through.
0:24:35 > 0:24:39I did a lot of research before I came for this property itself.
0:24:39 > 0:24:42I came here three times, brought the builders,
0:24:42 > 0:24:44had the legal pack in my hand as well
0:24:44 > 0:24:49so it was a point where I just didn't want to let go of it.
0:24:49 > 0:24:53Raqesh, whose day job is running his dry cleaning company,
0:24:53 > 0:24:55had big plans for this fairly big
0:24:55 > 0:24:58but rather dated and slightly damp flat.
0:24:58 > 0:25:00He clearly had quite the transformation in mind
0:25:00 > 0:25:03and I was getting pretty excited.
0:25:03 > 0:25:06- I have an interior designer with us as well on board.- Wow.
0:25:06 > 0:25:08- I'm expecting big things, Raqesh.- Absolutely.
0:25:08 > 0:25:13- I'm expecting a bit of a wow factor when I walk in the door.- Absolutely.
0:25:13 > 0:25:16Almost two months later, we're back to find out
0:25:16 > 0:25:18if Raqesh has injected that wow.
0:25:30 > 0:25:32I think that's what you call the wow factor.
0:25:42 > 0:25:44When we were last here,
0:25:44 > 0:25:49we had a partition wall which we completely removed.
0:25:49 > 0:25:52The kitchen actually felt very claustrophobic
0:25:52 > 0:25:56and removing the wall, having a bit more open-plan,
0:25:56 > 0:26:01it naturally let more daylight inside and it made the place,
0:26:01 > 0:26:04the kitchen actually look much more bigger as well.
0:26:04 > 0:26:08The rest of the flat isn't looking too shabby either.
0:26:36 > 0:26:40A high-end finish was promised by Raqesh
0:26:40 > 0:26:43and a high-end finish is exactly what he delivered.
0:26:43 > 0:26:45I do love the clean lines of the porcelain tiles
0:26:45 > 0:26:48but what about that lovely old parquet flooring?
0:26:49 > 0:26:53Originally, we were going to keep the parquet flooring.
0:26:53 > 0:26:56However, we looked at having to sand it down.
0:26:56 > 0:26:59Bring it back to its original life wasn't very cost-effective
0:26:59 > 0:27:04so therefore what we actually did was completely removed
0:27:04 > 0:27:07the parquet flooring from each and every individual room.
0:27:07 > 0:27:12We decided to go for natural bamboo in the living room.
0:27:12 > 0:27:17With the kitchen itself, we're going to go for the porcelain tiling
0:27:17 > 0:27:20and each bedroom was going to be carpeted.
0:27:20 > 0:27:23I think the carpet part also brings more comfort
0:27:23 > 0:27:26towards each home as well.
0:27:27 > 0:27:31OK, maybe cleaning up that parquet wasn't cost-effective
0:27:31 > 0:27:33but I have to say, I am sorry to see it go
0:27:33 > 0:27:37but this flat does have a truly lovely finish.
0:27:37 > 0:27:40The attention to detail is really impressive.
0:27:40 > 0:27:44I particularly like what he has done with the lighting.
0:27:44 > 0:27:46Dropping the ceiling, making that special extra feature,
0:27:46 > 0:27:49we put LED lights around them just to give
0:27:49 > 0:27:54that extra special effect in the living room, bathroom and kitchen.
0:27:54 > 0:27:56Originally, we were going to go for a standard finish
0:27:56 > 0:28:00but then I thought, you know, give that little bit extra spec
0:28:00 > 0:28:02is always a selling point as well
0:28:02 > 0:28:07and a bit of a wow factor but, yeah, we have put my extra effort
0:28:07 > 0:28:10in here and made sure that we give
0:28:10 > 0:28:13that special finish to the whole flat.
0:28:13 > 0:28:16An upmarket finish can mean an upmarket budget.
0:28:16 > 0:28:18Has Raqesh gone over?
0:28:18 > 0:28:23Initially, yes, we were going to spend £15,000 on the property itself.
0:28:23 > 0:28:27However, there were extra special features we did add on
0:28:27 > 0:28:30and that obviously added cost on at the same time.
0:28:30 > 0:28:35I have virtually got to a stage of my spreadsheet at the moment
0:28:35 > 0:28:39where it's just hit £18,000.
0:28:39 > 0:28:45I think considering that the finishing has come to this level,
0:28:45 > 0:28:49spending that extra £3,000 hasn't really made a big difference
0:28:49 > 0:28:54to anything because it actually does look better than it was
0:28:54 > 0:28:56and it's given that special effect.
0:28:57 > 0:29:01Keeping that budget under control with this finish is amazing
0:29:01 > 0:29:03but Raqesh managed to do that
0:29:03 > 0:29:06by doing a fair amount of the work himself.
0:29:06 > 0:29:09Whilst he and his team of builders have gone the extra mile,
0:29:09 > 0:29:12I'm hoping it's going to be enough to balance the books.
0:29:12 > 0:29:14Now, remember, Raqesh did get carried away
0:29:14 > 0:29:18and paid £115,000 over the guide price
0:29:18 > 0:29:22and with the renovation costing £18,000,
0:29:22 > 0:29:27his total investment here is a whopping £293,000.
0:29:27 > 0:29:32So with his mind totally set on selling, will his gamble pay off?
0:29:36 > 0:29:39We've invited along two local estate agents
0:29:39 > 0:29:41to give us their expert opinions.
0:29:42 > 0:29:44I think the real selling futures of the flat
0:29:44 > 0:29:48are the aesthetics of it. It looks good.
0:29:48 > 0:29:50The doors, the flooring,
0:29:50 > 0:29:53even the ceilings have all been done to a very high standard.
0:29:53 > 0:29:56It is in a good location
0:29:56 > 0:30:01and I would think it would be very popular to many, many buyers.
0:30:01 > 0:30:03The accommodation, being a three-bedroom flat,
0:30:03 > 0:30:09would be ideal for either a family or a professional couple
0:30:09 > 0:30:11or even a buy-to-let.
0:30:12 > 0:30:14Positive noises about the valuations
0:30:14 > 0:30:18are matched by a pretty positive top rental valuation
0:30:18 > 0:30:22of £1,450 per calendar month.
0:30:22 > 0:30:25That would mean a yield of just under 6%
0:30:25 > 0:30:27but this was never meant for rental.
0:30:27 > 0:30:30Raqesh is determined to sell.
0:30:30 > 0:30:33I believe this flat could be retailed
0:30:33 > 0:30:37at a figure of no less than £325,000.
0:30:37 > 0:30:39If we were marketing this flat,
0:30:39 > 0:30:43we would be looking to seek offers in excess of £330,000.
0:30:43 > 0:30:47It's slightly lower than what I was expecting.
0:30:47 > 0:30:51However, I will be very frank with you
0:30:51 > 0:30:54that we have accepted an offer
0:30:54 > 0:30:58and it is in the region of £375,000
0:30:58 > 0:31:02and we are starting legal on Monday.
0:31:04 > 0:31:06Crikey! What a result for Raqesh.
0:31:06 > 0:31:08If that sale does go through,
0:31:08 > 0:31:12it could mean a pre-tax profit of £82,000
0:31:12 > 0:31:14and as a result of that success,
0:31:14 > 0:31:18Raqesh has decided to property-develop full-time
0:31:18 > 0:31:21but saying goodbye to this property won't come too easy.
0:31:24 > 0:31:26I've enjoyed every moment of this project.
0:31:26 > 0:31:29It's heartbreaking that I have to sell it
0:31:29 > 0:31:31because I have fell in love with it
0:31:31 > 0:31:33and I think my family as well are really heartbroken
0:31:33 > 0:31:37that we have to let it go but this is business
0:31:37 > 0:31:40and it's just move onto the next one and make it just as good.
0:31:45 > 0:31:50And we're moving on to our next property too, here in Cornwall.
0:31:50 > 0:31:53# I've gotta run I need to get a tan
0:31:53 > 0:31:57# I'll get in my car and we'll go on holiday... #
0:31:57 > 0:32:00It's a hugely popular tourist destination
0:32:00 > 0:32:02but on the way to the holiday hot spot
0:32:02 > 0:32:04are plenty of lovely villages.
0:32:05 > 0:32:07Well, five miles from Liskeard,
0:32:07 > 0:32:09in the little village of East Taphouse
0:32:09 > 0:32:11is the property I'm here to see.
0:32:11 > 0:32:14It is right by the side of this fairly busy main road,
0:32:14 > 0:32:15which is not a good start.
0:32:15 > 0:32:18However, the guide price is intriguingly low.
0:32:18 > 0:32:21Just £40,000.
0:32:21 > 0:32:23So what's the catch?
0:32:24 > 0:32:26Hm. Maybe I'm being just a bit suspicious
0:32:26 > 0:32:31but not even that busy road can explain the guide price.
0:32:31 > 0:32:34The roof doesn't look too great. Could that be it?
0:32:34 > 0:32:37There's a charming rear garden. So what is the catch?
0:32:37 > 0:32:38So, through the back door,
0:32:38 > 0:32:41partly because that front door is on that busy main road
0:32:41 > 0:32:45so I guess you would end up using this entrance more often than not.
0:32:45 > 0:32:48Straight into the kitchen. Bit of a downside.
0:32:48 > 0:32:51That is the loo and bathroom and it's the only one in the property.
0:32:51 > 0:32:53Is that the main catch? No.
0:32:53 > 0:32:55And I'm sure you could live with that.
0:32:55 > 0:32:58You've got a sitting room, front sitting room there
0:32:58 > 0:33:00with an open fire, which is nice.
0:33:00 > 0:33:03Kitchen itself, well, it's kind of quaint.
0:33:03 > 0:33:06I guess it's built into some kind of extension at some point.
0:33:06 > 0:33:07Needs a bit of work
0:33:07 > 0:33:10but actually it's pretty in keeping with the cottage itself.
0:33:10 > 0:33:13Through here, and I'm getting the feeling this could almost have been
0:33:13 > 0:33:16a couple of cottages knocked through at some point
0:33:16 > 0:33:19because there's another sitting room here, a middle sitting room,
0:33:19 > 0:33:22and then through to another lounge at the front there.
0:33:22 > 0:33:25Again, downside - right by the side of the road.
0:33:25 > 0:33:27However, none of those things are the catch.
0:33:27 > 0:33:30The catch is that, in case you hadn't guessed,
0:33:30 > 0:33:33this place is actually lived in by somebody.
0:33:33 > 0:33:35There's a tenant in place and a rent is being paid.
0:33:35 > 0:33:37What's the problem with that?
0:33:37 > 0:33:39You could say that's actually good news.
0:33:39 > 0:33:40Trouble is that rent isn't necessarily
0:33:40 > 0:33:43the full market rent at the moment
0:33:43 > 0:33:46and you don't know what the tenancy agreement is that's in place.
0:33:46 > 0:33:48Is it an assured short-hold tenancy agreement
0:33:48 > 0:33:51you could change and maybe ask the person to move out?
0:33:51 > 0:33:53Is it... Does it exist at all?
0:33:53 > 0:33:54There's all sorts of unknowns
0:33:54 > 0:33:57and those definitely need to be sorted out
0:33:57 > 0:34:01because it makes this not an ideal one to go for perhaps
0:34:01 > 0:34:04but let's carry on looking around the property.
0:34:05 > 0:34:09This is one of those auction lots where reading the legal pack
0:34:09 > 0:34:11and the auction catalogue thoroughly
0:34:11 > 0:34:15and getting advice would have been imperative.
0:34:15 > 0:34:17Directly opposite the top of the stairs,
0:34:17 > 0:34:20this double bedroom overlooks that busy road
0:34:20 > 0:34:22and there's no double glazing.
0:34:22 > 0:34:24Definitely worth installing.
0:34:26 > 0:34:28A good-sized double bedroom on the front there
0:34:28 > 0:34:32and at the rear of the property, a half decent-sized second bedroom
0:34:32 > 0:34:33but then...
0:34:33 > 0:34:35This is where it goes a bit wrong
0:34:35 > 0:34:38because in order to access the third bedroom,
0:34:38 > 0:34:40you have to come through here.
0:34:41 > 0:34:44I mean, in terms of layout, it's not ideal at all.
0:34:44 > 0:34:47The bedroom itself is quite good so what's the solution?
0:34:47 > 0:34:50It might not be as expensive or difficult as you might imagine.
0:34:50 > 0:34:52Just moving the stairs to the centre of the property
0:34:52 > 0:34:55would solve all your problems.
0:34:55 > 0:34:59You would then access the front bedroom from the other corner.
0:35:00 > 0:35:04- # Move it on over - Move it on over
0:35:04 > 0:35:05# Move it on over... #
0:35:05 > 0:35:09And the rear bedroom and master bedroom on the sides of the house
0:35:09 > 0:35:12will have their own separate doors. Much better.
0:35:12 > 0:35:14Of course, you will need to check with the planning department
0:35:14 > 0:35:18and get expert advice as there are possible structural issues
0:35:18 > 0:35:21for a cottage that was built in 1847.
0:35:21 > 0:35:25Being on a busy road, the curb appeal isn't a selling point
0:35:25 > 0:35:27for this cottage but at the back,
0:35:27 > 0:35:30this glorious garden with distant views
0:35:30 > 0:35:35and a separate entrance providing off-street parking is a real winner.
0:35:37 > 0:35:41We invited a local estate agent to come round and give us his opinions.
0:35:43 > 0:35:49I really like it. Lots of potential. Very cosy. Lots of nice features.
0:35:49 > 0:35:52It could make a fantastic little cottage.
0:35:52 > 0:35:54You've got parking for several vehicles
0:35:54 > 0:35:57so that's a huge benefit for this cottage.
0:35:57 > 0:35:59Knowing the area and similar properties,
0:35:59 > 0:36:02I wonder if he thinks reconfiguring the staircase
0:36:02 > 0:36:04and the layout is a good idea.
0:36:04 > 0:36:07Personally, I wouldn't suggest altering the layout.
0:36:07 > 0:36:11I think you'd reduce the size of one of the bedrooms so much so
0:36:11 > 0:36:15that it's actually better to have three good-sized double bedrooms.
0:36:15 > 0:36:18OK, well, if the cottage was left configured as is
0:36:18 > 0:36:20and the buyer was looking to rent,
0:36:20 > 0:36:23how much income could the property generate?
0:36:23 > 0:36:27In its current form, I believe around £450 per calendar month.
0:36:27 > 0:36:32Renovated, £550-£600 per calendar month.
0:36:32 > 0:36:34And what about the sales figures?
0:36:36 > 0:36:39Once renovated, I'd be able to put this on the market
0:36:39 > 0:36:42for £125,000 to £130,000.
0:36:43 > 0:36:46Well, it's a charming little cottage
0:36:46 > 0:36:50but buying a tenanted property does have its issues
0:36:50 > 0:36:52so it won't be for everybody.
0:36:52 > 0:36:55Let's see who bought it when it went under the hammer.
0:36:56 > 0:36:58East Taphouse, Liskeard.
0:36:58 > 0:37:01Freehold subject to an assured tenancy.
0:37:01 > 0:37:0345 with you. Certainly will.
0:37:03 > 0:37:06At £45,000. One more to advance to 46.
0:37:06 > 0:37:1047 now. 48. 49. 50.
0:37:10 > 0:37:13At £50,000 standing here. 51.
0:37:14 > 0:37:18No, you're done. It's at £50,000 standing here. Take one.
0:37:18 > 0:37:21Anywhere else in the room? If anyone else wants to now come in here.
0:37:21 > 0:37:23£50,000 standing.
0:37:24 > 0:37:29It's 51 now. And two? And three? And four? And five? And six?
0:37:29 > 0:37:31And seven? And eight?
0:37:31 > 0:37:34And nine? And 60.
0:37:34 > 0:37:3660? No?
0:37:36 > 0:37:40£60,000 standing here against you and against you. At £60,000.
0:37:41 > 0:37:44Call it for the first time. Second time.
0:37:44 > 0:37:47Third and last time at £60,000 standing here.
0:37:47 > 0:37:48Quite sure we're all done.
0:37:48 > 0:37:50- HE HITS GAVEL - Yours at £60,000.
0:37:50 > 0:37:51Very happy smiley face.
0:37:51 > 0:37:55The very, very happy bidder was Sarah who was at the auction
0:37:55 > 0:37:58with her husband and next-door neighbours.
0:37:58 > 0:38:00Sarah knows the cottage well
0:38:00 > 0:38:04because she and her husband Graham and their four-year-old son Toby
0:38:04 > 0:38:08are the tenants who have lived there for many years.
0:38:08 > 0:38:12Sarah also operates a childminding business from the cottage
0:38:12 > 0:38:16so it was really crucial for them to get the cottage
0:38:16 > 0:38:17when it went under the hammer.
0:38:17 > 0:38:21I went back to the property to congratulate her on the purchase
0:38:21 > 0:38:24and find out more.
0:38:24 > 0:38:27- Sarah, lovely to meet you.- You too. - Congratulations.- Thank you.
0:38:27 > 0:38:31- Now, how long have you lived here for?- 16 years.
0:38:31 > 0:38:35The auction, I can only imagine how nerve-racking that was for you.
0:38:35 > 0:38:38- Yes, didn't sleep for a few nights before.- Right.
0:38:38 > 0:38:40You happy with what you paid?
0:38:40 > 0:38:43It was right on our limit. We couldn't go any higher than that.
0:38:43 > 0:38:44- That was it?- That was it.
0:38:44 > 0:38:46- That was your last bid? - That was our last bid.
0:38:46 > 0:38:48I had to look confident and just try and go for it
0:38:48 > 0:38:52and hoping that whoever it was bidding against us would stop.
0:38:52 > 0:38:54Have you thought about buying it before?
0:38:54 > 0:38:58Yes, we had tried to put an offer in beforehand. It was declined.
0:38:58 > 0:39:02- How much was your offer for? - £55,000.- OK.
0:39:02 > 0:39:05- So you had to pay a little bit more. - Yes.
0:39:05 > 0:39:08The prospect of the sale of this house, what did that mean to you?
0:39:08 > 0:39:10Um...
0:39:10 > 0:39:13It was very nerve-racking and not knowing what's going to happen.
0:39:13 > 0:39:16It was like we had to go for it.
0:39:16 > 0:39:18What would the worst-case scenario have been?
0:39:18 > 0:39:20We were always told they couldn't get us out
0:39:20 > 0:39:22so if anyone else bought it,
0:39:22 > 0:39:24it would have to deal with somebody else
0:39:24 > 0:39:26and hoping they would do the house up
0:39:26 > 0:39:29because there's a lot of work needs doing to the place
0:39:29 > 0:39:32but how they were going to do that while we were living in here
0:39:32 > 0:39:34was all going to be very difficult.
0:39:34 > 0:39:37So you say they couldn't get you out. What do you mean?
0:39:37 > 0:39:41- No, we had an assured tenancy. - For how many years?
0:39:41 > 0:39:44Well, we have never signed anything. There wasn't anything in place.
0:39:44 > 0:39:47- We were told we could stay here as long as we'd like...- Oh, wow!
0:39:47 > 0:39:49..when we first moved in.
0:39:49 > 0:39:53- You've got a bit of a bargain, actually.- Yes.
0:39:53 > 0:39:55What do you know about the price?
0:39:55 > 0:39:59Well, we kind of went for the mortgage and things like that
0:39:59 > 0:40:03and then they came back and said actually the value is £120,000.
0:40:03 > 0:40:05- Really?- Yes.
0:40:05 > 0:40:09- As it is?- As it is. So...yes.
0:40:09 > 0:40:12- So you've got a £120,000 house for £60,000?- Yes.
0:40:15 > 0:40:18That was our one and only option of buying our own home
0:40:18 > 0:40:20and it's worked out, thank goodness.
0:40:20 > 0:40:25# It took a whole lot to do it but we did it
0:40:25 > 0:40:27# Yes, we did it... #
0:40:27 > 0:40:29Sarah's husband is a gardener
0:40:29 > 0:40:33and he'll do as much work as he can to keep the costs down
0:40:33 > 0:40:35with help from a builder friend
0:40:35 > 0:40:38but I'm keen to find out what their plans are for the cottage.
0:40:38 > 0:40:40So 16 years you've been living here.
0:40:40 > 0:40:43- Have you changed it round much since you moved in?- No, not really.
0:40:43 > 0:40:47We've tried to decorate it as time goes on
0:40:47 > 0:40:48and patched it up here and there
0:40:48 > 0:40:51because not much has been done on the house since we moved in
0:40:51 > 0:40:54so we have made it liveable.
0:40:54 > 0:40:59- Are there things you wanted to do? - Yes, like the bathroom, the kitchen.
0:40:59 > 0:41:01It needed redoing, really.
0:41:01 > 0:41:04We have kind of patched it up as much as we could.
0:41:04 > 0:41:07- Yeah, and the roof.- Does it leak?
0:41:07 > 0:41:10Well, it doesn't leak but there is a chimney behind a wall
0:41:10 > 0:41:14- where sometimes we can hear a dripping.- Ew. But it is now yours.
0:41:14 > 0:41:17- It's ours so we can do the work. - Cut and dry. Do what you want.
0:41:17 > 0:41:20- Yeah.- Result. What are you going to do to it?
0:41:20 > 0:41:24- Well, we're hoping to get the bathroom upstairs.- Where?
0:41:24 > 0:41:28- In the large bedroom. Just cut that up a bit.- OK.
0:41:28 > 0:41:30If we can move the stairs,
0:41:30 > 0:41:33hopefully, that will separate the house into three bedrooms
0:41:33 > 0:41:34and a small bathroom.
0:41:34 > 0:41:37And then the bathroom downstairs, keep that?
0:41:37 > 0:41:39No, we'll move that and turn that into...
0:41:39 > 0:41:42Hopefully get some planning to extend out slightly
0:41:42 > 0:41:43and have a kitchen-diner
0:41:43 > 0:41:46so you're looking out into the garden so that's the plan.
0:41:46 > 0:41:47Well, I like that idea because
0:41:47 > 0:41:50the cottage really doesn't make the most of the garden
0:41:50 > 0:41:52and those cracking views.
0:41:52 > 0:41:54If they get planning permission for the extension,
0:41:54 > 0:41:56a larger kitchen could transform the place
0:41:56 > 0:41:59and the couple plan to add double glazing
0:41:59 > 0:42:01which will cut down the traffic noise.
0:42:01 > 0:42:04What's the sort of budget set aside for doing the work?
0:42:04 > 0:42:05So far, we've got £8,000
0:42:05 > 0:42:08then hopefully, we'll see how far we can go with that
0:42:08 > 0:42:10and then we'll hopefully get a loan on top.
0:42:10 > 0:42:12And the timescale?
0:42:12 > 0:42:13Roof and windows by winter
0:42:13 > 0:42:16and then the rest will follow suit, really
0:42:16 > 0:42:18and see how we go by from there.
0:42:18 > 0:42:21- Well, Sarah, congratulations. Delighted for you.- Lovely.
0:42:21 > 0:42:25- Good luck.- Thanks.- Look forward to seeing how you get on.- Thank you.
0:42:26 > 0:42:29Well, I do love a happy ending and for Sarah and her family,
0:42:29 > 0:42:32it certainly looks like one of those.
0:42:32 > 0:42:34An obvious thing for her to buy
0:42:34 > 0:42:37and it seems like she has done really well in the process.
0:42:37 > 0:42:39How will they get on with the renovations?
0:42:39 > 0:42:40I like the idea of moving the stairs
0:42:40 > 0:42:43and sorting out the bedrooms upstairs, changing it all around.
0:42:43 > 0:42:46Sounds great. You can find out how they get on later in the show.
0:42:49 > 0:42:52We've seen how one of our auction properties turned out.
0:42:52 > 0:42:53What about the other two?
0:42:53 > 0:42:57Have there been many changes or have they remained exactly the same?
0:42:57 > 0:42:59Let's find out.
0:43:03 > 0:43:07Back to Newcastle-under-Lyme in Staffordshire now
0:43:07 > 0:43:11where earlier, I looked around this three-bedroom semidetached
0:43:11 > 0:43:16which sat opposite the local pub and on a main road.
0:43:18 > 0:43:21It was a solid property with very few obvious problems
0:43:21 > 0:43:26and, at a guide price of £80,000, looked like a bit of a bargain...
0:43:27 > 0:43:30..especially when I discovered...
0:43:30 > 0:43:34Next to the next-door property, you've also got a single garage.
0:43:34 > 0:43:36Bonus!
0:43:36 > 0:43:40It was bought on auction day by Kevin for £109,000.
0:43:42 > 0:43:45After a ten-year break from property developing,
0:43:45 > 0:43:50Kevin was making a comeback and this was his latest acquisition.
0:43:50 > 0:43:53So this one then, what are you going to do to it?
0:43:53 > 0:43:57Cosmetically, it looks fairly clean but it does need...
0:43:57 > 0:43:59Every room needs repainting.
0:43:59 > 0:44:01The bathroom needs completely ripping out.
0:44:01 > 0:44:03That's very old-fashioned.
0:44:03 > 0:44:06Also, the kitchen is probably 1960s and not been touched yet
0:44:06 > 0:44:08so that needs ripping out.
0:44:08 > 0:44:10There's a window going out into the garden.
0:44:10 > 0:44:14I want to put French doors in there so it blends itself into the garden.
0:44:14 > 0:44:17It's south-facing as well and it's got a nice patio area
0:44:17 > 0:44:20so it could be a very nice little family home.
0:44:20 > 0:44:24Kevin was keen to add this property to his portfolio of rentals
0:44:24 > 0:44:27and had given himself a six-week timescale
0:44:27 > 0:44:30and a £7,000 budget to get the job done.
0:44:31 > 0:44:36Well, rather than six weeks, it's five months before we return.
0:44:36 > 0:44:39Let's see if Kevin's plans have run smoothly.
0:45:00 > 0:45:02The downstairs has been transformed
0:45:02 > 0:45:05into a cosy, comfortable family home...
0:45:08 > 0:45:12..with the kitchen and diner looking much more appealing.
0:45:12 > 0:45:15What's changed in this room? Really, quite a lot has changed in this room.
0:45:15 > 0:45:19We've got a new kitchen, complete new ceiling and French doors,
0:45:19 > 0:45:21which let a lot of light into the room.
0:45:21 > 0:45:26It makes it much, much brighter and a nicer room to be in, really.
0:45:26 > 0:45:29Upstairs and the improvements continue with the bathroom -
0:45:29 > 0:45:32all clean lines and contemporary design.
0:45:36 > 0:45:39The three bedrooms are showing what a lovely family home
0:45:39 > 0:45:41this property was always meant to be.
0:45:57 > 0:46:00The French doors open out onto a tidied-up garden
0:46:00 > 0:46:02with a new resident.
0:46:02 > 0:46:06It looks like Fudge is very happy with his new abode.
0:46:06 > 0:46:08But enough of me rabbiting on.
0:46:08 > 0:46:11What have been the biggest challenges?
0:46:11 > 0:46:13The main work that's been done
0:46:13 > 0:46:16is replastered the hallway losing all the Artex.
0:46:16 > 0:46:18The kitchen has been replastered.
0:46:18 > 0:46:21A new kitchen and replastered
0:46:21 > 0:46:23and complete new bathroom is the main works.
0:46:23 > 0:46:26The ceiling in the kitchen wasn't as good as we thought it was
0:46:26 > 0:46:28so we actually changed the ceiling in the kitchen
0:46:28 > 0:46:33and then central heating, I was debating whether to change that
0:46:33 > 0:46:36and in the end, we decided to rip that out completely
0:46:36 > 0:46:39and start again with a good-quality central heating system
0:46:39 > 0:46:41which was the biggest expense, really, so far.
0:46:41 > 0:46:43I took the old kitchen out.
0:46:43 > 0:46:45I installed the majority of the new kitchen,
0:46:45 > 0:46:48did a lot of the painting, decorating,
0:46:48 > 0:46:52the landscaping around and then had contractors to do the rest.
0:46:53 > 0:46:55Kevin's hands-on approach helped him
0:46:55 > 0:46:58stick close to his original budget of £7,000,
0:46:58 > 0:47:01going just £1,000 over that figure.
0:47:01 > 0:47:03However, he is some distance away
0:47:03 > 0:47:06from his original timescale of six weeks.
0:47:07 > 0:47:11The reason it's taken so long to get you back here, really,
0:47:11 > 0:47:13and to get into the position we are now
0:47:13 > 0:47:16is my stepdaughter, who's building her own house, suddenly decided
0:47:16 > 0:47:18they wanted somewhere else to live
0:47:18 > 0:47:21while they're having their own house built so they came in,
0:47:21 > 0:47:24did a quick decorate and moved in straightaway
0:47:24 > 0:47:28and we have got them here probably until around March, April next year.
0:47:28 > 0:47:31They've been very involved and one of the lucky things really
0:47:31 > 0:47:35is the tenant that's here is a tiler so he can tile
0:47:35 > 0:47:37and he's done all of the tiling work for me.
0:47:37 > 0:47:41An in-house tiler? That's a jammy outcome.
0:47:41 > 0:47:44So right now, and for the next six months or so,
0:47:44 > 0:47:48Kevin's stepdaughter and her family will be staying in the house.
0:47:48 > 0:47:52However, Kevin has spent a total of £117,000
0:47:52 > 0:47:54buying and developing this house
0:47:54 > 0:47:58and will be keen to see a future return on his investment.
0:47:59 > 0:48:02We've invited two local property agents along
0:48:02 > 0:48:03to give us their opinions.
0:48:03 > 0:48:07The one thing that really stands out is the kitchen.
0:48:07 > 0:48:08Most people these days are looking
0:48:08 > 0:48:10for a good-sized kitchen-diner family room.
0:48:10 > 0:48:13It overlooks the garden as well, which is a really nice feature.
0:48:13 > 0:48:15I think people will really take to that.
0:48:15 > 0:48:19I think the bathroom is fitted really, really nicely.
0:48:19 > 0:48:22It's modern fitted, ideal for families with the bath
0:48:22 > 0:48:26and obviously shower over so it's convenient.
0:48:26 > 0:48:28I think the kitchen now has opened it out.
0:48:28 > 0:48:31It offers a dining kitchen so that's great for families again
0:48:31 > 0:48:35because there is lots of space and obviously the patio doors
0:48:35 > 0:48:38leading out onto the garden so you can have a nice view.
0:48:40 > 0:48:43Let's get stuck into those figures, then. Rentals first.
0:48:44 > 0:48:47I think the landlord should probably be looking
0:48:47 > 0:48:50somewhere in the region of £575-£600 per calendar month.
0:48:50 > 0:48:53I would expect the vendor to achieve £625
0:48:53 > 0:48:57per calendar month on the rental market.
0:48:57 > 0:49:00Yeah, that's about right. That £625 is really great.
0:49:00 > 0:49:02That's about what I'm looking for so, yeah,
0:49:02 > 0:49:04certainly think I'll get the higher end.
0:49:04 > 0:49:08Well, if he does get £625 per calendar month,
0:49:08 > 0:49:11that could mean a yield of over 6%.
0:49:11 > 0:49:13What about those sales figures?
0:49:15 > 0:49:20In the current market, I would say somewhere in the region of £110,000.
0:49:20 > 0:49:21In the current market,
0:49:21 > 0:49:27I would suggest a resale value of £150,000.
0:49:27 > 0:49:29110 is ridiculously low.
0:49:29 > 0:49:32There's no way it would fetch that amount.
0:49:32 > 0:49:36I know next door but one has just sold for 150 and it's identical.
0:49:36 > 0:49:38One reason for the difference in values
0:49:38 > 0:49:40is that this is a very long street
0:49:40 > 0:49:44and prices tend to vary depending on where you are.
0:49:44 > 0:49:46But if Kevin gets that £150,000,
0:49:46 > 0:49:49he stands to make a profit of £33,000
0:49:49 > 0:49:52minus the usual taxes and expenses.
0:49:52 > 0:49:56However, with his stepdaughter, and of course Fudge the rabbit,
0:49:56 > 0:49:59settled in for the next six months at least,
0:49:59 > 0:50:02Kevin is happy to hold on to the property
0:50:02 > 0:50:05and will rent it out for some time to come.
0:50:05 > 0:50:09So with a successful property here and a pub over the road,
0:50:09 > 0:50:12I can see only one outcome. What do you reckon, Kevin?
0:50:13 > 0:50:15I think over there for a quick pint.
0:50:23 > 0:50:26Back to Cornwall now and to the village of East Taphouse
0:50:26 > 0:50:29where I looked at this semidetached cottage.
0:50:33 > 0:50:34Although on a main road,
0:50:34 > 0:50:38it had a huge back garden along with three good-sized bedrooms,
0:50:38 > 0:50:44all for a guide price of £40,000 plus, so what was the catch?
0:50:44 > 0:50:45In case you hadn't guessed,
0:50:45 > 0:50:47this place is actually lived in by somebody.
0:50:47 > 0:50:50There's a tenant in place and a rent is being paid.
0:50:50 > 0:50:53What's wrong with that? You could say that's actually good news.
0:50:53 > 0:50:57Trouble is that rent isn't necessarily the full market rent
0:50:57 > 0:50:58at the moment.
0:50:58 > 0:51:00So there's a tenant in place.
0:51:00 > 0:51:03They may not be paying the amount of rent you'd like
0:51:03 > 0:51:06and you don't know what the tenant's contract is,
0:51:06 > 0:51:08if indeed there is any contract at all.
0:51:08 > 0:51:13All this and there's the usual old windows and dodgy-looking roof.
0:51:13 > 0:51:16A lot of potential banana skins.
0:51:26 > 0:51:30Sarah, the buyer, was overcome with joy
0:51:30 > 0:51:32because she was the tenant.
0:51:32 > 0:51:35- How long have you lived here for? - 16 years.
0:51:35 > 0:51:38- Were you happy with what you paid? - It was right on our limit.
0:51:38 > 0:51:40We couldn't go any higher than that. That was it.
0:51:40 > 0:51:42- That was your last bid? - That was our last bid.
0:51:42 > 0:51:46I had to look confident and just try to go for it.
0:51:46 > 0:51:49After 16 years of living there, Sarah and her family
0:51:49 > 0:51:53finally own the property and can begin making improvements.
0:51:55 > 0:52:00Two years and four months later, we return to see how she got on.
0:52:01 > 0:52:03# Stay with me
0:52:03 > 0:52:05# Stay with me
0:52:05 > 0:52:09# For tonight you'd better stay with me
0:52:11 > 0:52:15# Stay with me, stay with me
0:52:15 > 0:52:20# For tonight you'd better stay with me... #
0:52:23 > 0:52:26Sarah and her family have stayed put but made changes
0:52:26 > 0:52:30so the house they love better suits their needs.
0:52:30 > 0:52:31Windows we did first.
0:52:31 > 0:52:35That was the easier job. And then we did the roof.
0:52:35 > 0:52:38We still have to redesign the kitchen
0:52:38 > 0:52:39and hopefully do a kitchen-diner
0:52:39 > 0:52:42with windows looking out to the garden,
0:52:42 > 0:52:44which hopefully will be next year.
0:52:44 > 0:52:47And we still want to do the flooring in the other room.
0:52:47 > 0:52:51We found flagstones under the carpet so we want to restore them.
0:52:53 > 0:52:54There's still a lot to do, then,
0:52:54 > 0:52:58especially with the kitchen extension yet to be tackled
0:52:58 > 0:53:00but by sorting the windows and the roof,
0:53:00 > 0:53:02the family are now warm and dry,
0:53:02 > 0:53:04a very smart move, in my opinion.
0:53:06 > 0:53:10Despite those being big jobs, they were by no means the biggest.
0:53:12 > 0:53:14Well, in this room, we have moved the stairs.
0:53:14 > 0:53:17The stairs before were here in the corner in a cupboard
0:53:17 > 0:53:20and now we have moved it to the centre of the house going up
0:53:20 > 0:53:23and also we have removed the wall to open it up
0:53:23 > 0:53:28and give us more space and light in this room, which is great.
0:53:30 > 0:53:32And moving the stairs hasn't just benefited
0:53:32 > 0:53:34the layout of the ground floor.
0:53:35 > 0:53:38With the stairs coming up through the centre of the house,
0:53:38 > 0:53:41we now don't have to walk through Toby's room
0:53:41 > 0:53:42to get to the master bedroom.
0:53:42 > 0:53:47We now have a bathroom and a small guest room on the left
0:53:47 > 0:53:51and then we also have what's going to be our bedroom
0:53:51 > 0:53:54over up onto the right.
0:53:54 > 0:53:57I think this is a much more sensible layout.
0:53:57 > 0:53:59They have managed to retain three bedrooms
0:53:59 > 0:54:01and have a bathroom upstairs.
0:54:01 > 0:54:04And how does Toby like his bedroom?
0:54:04 > 0:54:06- It's good.- There you have it.
0:54:06 > 0:54:09He loves his new room. He's so proud.
0:54:09 > 0:54:11He always wanted fish and we always said,
0:54:11 > 0:54:13"As soon as you have your new room, you can have some fish,"
0:54:13 > 0:54:15so he has now got a fish tank.
0:54:15 > 0:54:19So meet Goldie, Wriggler, Spotty and Stripy.
0:54:19 > 0:54:23So, Toby, care to tell us what you like best about the new set-up?
0:54:23 > 0:54:28It's mostly got more pictures and I've got my fish now.
0:54:28 > 0:54:31It used to be a bit long travelling to the bathroom
0:54:31 > 0:54:34because we had to go all the way downstairs.
0:54:35 > 0:54:40Budget restraints meant Sarah and family were only working weekends
0:54:40 > 0:54:42and relying on friends in the building trade
0:54:42 > 0:54:46to get the work done so it's taken a while - almost two and a half years,
0:54:46 > 0:54:50but this was a labour of love and timescale wasn't a priority.
0:54:50 > 0:54:51The most important thing
0:54:51 > 0:54:55was that they had the home they always wanted to own.
0:54:55 > 0:54:57Now it's ours and because we've put the work in as well,
0:54:57 > 0:55:00it makes us feel like we have done this
0:55:00 > 0:55:04and knowing that you are not putting money in where you're wasting it
0:55:04 > 0:55:07and somebody else might take it away from you so, yeah,
0:55:07 > 0:55:10everything we put in it is ours now.
0:55:11 > 0:55:15# Our home, let me come home
0:55:15 > 0:55:19# Home is wherever I'm with you... #
0:55:19 > 0:55:23This is going to be a long-term project and Sarah and husband Graham
0:55:23 > 0:55:27will do the work as and when they have the finances...and the energy.
0:55:27 > 0:55:29Talking about finances, it seems almost rude
0:55:29 > 0:55:33when this is a project of the heart, but here we go.
0:55:33 > 0:55:36Sarah had a budget of £8,000 to do the first stage.
0:55:36 > 0:55:39That included the roof, the windows and the staircase
0:55:39 > 0:55:42so how did she get on?
0:55:44 > 0:55:49Yeah, budget is about £10,000 now.
0:55:49 > 0:55:52With the roof and windows and the new chimney as well
0:55:52 > 0:55:55so we've done pretty well actually with that.
0:55:56 > 0:55:58The couple have had a huge task
0:55:58 > 0:56:02making some very necessary but transformative changes
0:56:02 > 0:56:05and I'll bet they can only have improved the value.
0:56:05 > 0:56:08So far, with the purchase price of £60,000
0:56:08 > 0:56:12and their spend of £10,000, they have spent £70,000 on their home.
0:56:12 > 0:56:16We asked two local estate agents to give us their thoughts.
0:56:19 > 0:56:23I like the way they have opened it all up, let a lot of light in.
0:56:23 > 0:56:26Still a long way to go but there's a lot of potential here.
0:56:26 > 0:56:30I like the fact that they have opened up the two rooms
0:56:30 > 0:56:32because they were quite small
0:56:32 > 0:56:36and having changed the location of the staircase,
0:56:36 > 0:56:41that is probably a big advantage to have the dog-leg staircase now.
0:56:41 > 0:56:45Despite clearly being a work in progress, positive comments
0:56:45 > 0:56:46so far from the experts.
0:56:46 > 0:56:51If she were to rent, what could she expect to achieve?
0:56:51 > 0:56:54I think you could let this property in the region of £450
0:56:54 > 0:56:56per calendar month.
0:56:56 > 0:56:58The rent that we could achieve on this
0:56:58 > 0:57:00being a three-bedroom property
0:57:00 > 0:57:06would probably be around the £375-£395 per calendar month.
0:57:06 > 0:57:10Both estate agents said they would market the property
0:57:10 > 0:57:13in its current state at £125,000.
0:57:13 > 0:57:14However, were they to go ahead
0:57:14 > 0:57:16with the kitchen extension they're planning,
0:57:16 > 0:57:19it could be worth up to £160,000.
0:57:19 > 0:57:22Certainly would be worth doing, Sarah.
0:57:22 > 0:57:24Even without renovating the kitchen,
0:57:24 > 0:57:28this would give Sarah a profit of £55,000.
0:57:28 > 0:57:30But this wasn't about the money.
0:57:30 > 0:57:33This development was about improving the quality of life
0:57:33 > 0:57:35for Sarah and her family.
0:57:35 > 0:57:38Don't forget, Sarah has been living in a building site
0:57:38 > 0:57:41for more than two years with more work still to do
0:57:41 > 0:57:44so how does she feel about the whole process?
0:57:47 > 0:57:51It's daunting at first and it's definitely hard work.
0:57:51 > 0:57:54You have ups and downs but the end result, once you're there,
0:57:54 > 0:57:57I think it's a big thumbs-up.
0:57:57 > 0:57:59Yeah.
0:58:02 > 0:58:05What do you think? Would you have been tempted to buy
0:58:05 > 0:58:07any of those properties at today's auctions?
0:58:07 > 0:58:10Well, there's plenty more where they came from
0:58:10 > 0:58:12so make sure you join us next time for more Homes Under The Hammer.
0:58:12 > 0:58:14Goodbye.