0:00:02 > 0:00:05Hello, now sometimes the property market is extremely competitive,
0:00:05 > 0:00:07other times, it's, well...slow.
0:00:07 > 0:00:09But, either way, you've got to know where to get a bargain.
0:00:09 > 0:00:13So, what's our advice? Well, do as much research as you can,
0:00:13 > 0:00:15then set a limit and stick to it.
0:00:15 > 0:00:19And one place you can kind of move things in your favour,
0:00:19 > 0:00:21is visit your local property auction.
0:00:46 > 0:00:51Now a lot of people are nervous about bidding at auctions and there's really no need to be.
0:00:51 > 0:00:54Yeah, don't worry. You won't find if you scratch your nose
0:00:54 > 0:00:57- you've bought a two-bed flat in Basingstoke.- No.
0:00:57 > 0:01:00It's really simple, just make sure you can be seen,
0:01:00 > 0:01:03bid clearly and don't go over your limit.
0:01:03 > 0:01:05So, let's see what today's bidders bought.
0:01:08 > 0:01:12First up, in Burton-on-Trent, there's no messing about -
0:01:12 > 0:01:15quicker, cheaper, faster, now, tomorrow, today even.
0:01:15 > 0:01:17Yeah, definitely.
0:01:17 > 0:01:23And up in Kirkcaldy, Scotland, I have to watch my step before I enter this property.
0:01:23 > 0:01:25Man coming in. All clear?
0:01:27 > 0:01:30Whilst in Wales, I need to take a step back.
0:01:30 > 0:01:35It looks like the whole of the front of this house is actually leaning this way.
0:01:35 > 0:01:38That's not a good start.
0:01:38 > 0:01:40All these properties have been sold at auction,
0:01:40 > 0:01:43we'll find out who bought them and what they paid for them,
0:01:43 > 0:01:45when they went under the hammer.
0:01:45 > 0:01:46Yours, sir. Well done.
0:01:50 > 0:01:53Burton-on-Trent in East Staffordshire is a town,
0:01:53 > 0:01:57which in its heyday was home to over a dozen breweries.
0:01:57 > 0:02:01And one quarter of all beers sold in Britain came from here.
0:02:01 > 0:02:04Today, there are excellent transport links to Derby and Birmingham
0:02:04 > 0:02:09and it's got lots of amenities, including pubs for all those important pints.
0:02:11 > 0:02:16This is a busy road. So, excuse me while I shout over the noise of the traffic.
0:02:16 > 0:02:20But it's not all bad news as this is a really central spot,
0:02:20 > 0:02:22only a few minutes' walk from the high street.
0:02:22 > 0:02:26And as for the property I'm here to see, well, it's a one-bedroom flat
0:02:26 > 0:02:30and it had a guide price of £38,000.
0:02:30 > 0:02:35And...it looks freshly painted on the outside. Good stuff.
0:02:35 > 0:02:38MUSIC: Movin' on Up by Primal Scream
0:02:38 > 0:02:41The building the flat is in is the Grade II listed.
0:02:41 > 0:02:44It's a historic early 18th century brewery.
0:02:44 > 0:02:48There's a charming courtyard at the rear, which leads on to a back garden
0:02:48 > 0:02:54and an amazing stairwell that I'm about to get to know very well.
0:02:54 > 0:02:57# I'm moving on up now
0:02:58 > 0:03:02# Gettin' out of the darkness
0:03:04 > 0:03:05# My light shines on... #
0:03:05 > 0:03:10And...breathe! Can you just wait there while I catch my breath?
0:03:10 > 0:03:14It's quite a lot of stairs to climb, but what a magnificent stairwell.
0:03:14 > 0:03:18I mean, that really is beautiful. When you stand at the top and look down, wow!
0:03:18 > 0:03:21Very impressive, indeed. And well maintained.
0:03:21 > 0:03:25Just like this flat. So, walk straight in into a sitting area.
0:03:25 > 0:03:30Really nice, it's cosy, it's very light. You've got two big windows there.
0:03:30 > 0:03:32Separate kitchen, which is fantastic.
0:03:32 > 0:03:36A lot of the time you find the kitchen's all squashed up in the corner of the room,
0:03:36 > 0:03:40but it's really nice to see that. And it's actually quite a quirky little kitchen.
0:03:40 > 0:03:43Separate bathroom over here, which is good as well.
0:03:43 > 0:03:46But you've got a shower that looks like a TARDIS or a phone box
0:03:46 > 0:03:49right in the middle of the room. It's not really working.
0:03:49 > 0:03:52I think I'd rearrange the space in there and try to get a bath in,
0:03:52 > 0:03:54because I think that would work well.
0:03:54 > 0:03:57But what I really like about this room here
0:03:57 > 0:03:59is that you can see what it will be like dressed up.
0:03:59 > 0:04:04Nice fireplace, you could have a great big mirror over here, some lovely curtains.
0:04:04 > 0:04:06It's got a great feel to it, this flat.
0:04:06 > 0:04:09It's very handsome, it looks good, it feels good
0:04:09 > 0:04:12and I can imagine this will be a fantastic flat for somebody.
0:04:12 > 0:04:16MUSIC: From A Window by Billy J Kramer and The Dakotas
0:04:23 > 0:04:28There's a good size double bedroom with another set of those lovely Georgian windows
0:04:28 > 0:04:33and, yes, this, along with the whole flat, would benefit from a cosmetic upgrade.
0:04:33 > 0:04:36I can see a bit of a damp under the windows,
0:04:36 > 0:04:39BUT, on the whole, this is almost good to go.
0:04:39 > 0:04:43And I really love the character of this listed flat.
0:04:43 > 0:04:46I know I've said it plenty of times on Homes Under The Hammer,
0:04:46 > 0:04:50but Georgian sash windows are my favourite.
0:04:50 > 0:04:53Yes, they are so much more expensive to restore and maintain,
0:04:53 > 0:04:58but they look so much better and more in keeping with period properties
0:04:58 > 0:05:01like this than modern UPVC windows.
0:05:01 > 0:05:05And in this Grade II listed property, there will be restrictions
0:05:05 > 0:05:09on changing these windows anyway. My only concern is,
0:05:09 > 0:05:13they're single glazed and you can hear the noisy traffic outside.
0:05:15 > 0:05:20At least the management company replaced these frames three years ago.
0:05:20 > 0:05:23You can double-glaze sash windows, but it would be costly to do so.
0:05:23 > 0:05:27So, it might be a case of earplugs at the ready here.
0:05:27 > 0:05:29But I do think it would be worth listening
0:05:29 > 0:05:31to a local property expert's opinion.
0:05:31 > 0:05:33Here comes one.
0:05:36 > 0:05:39The fact that a building is listed or in a conversation area,
0:05:39 > 0:05:42it's 50-50 really. Some people will find that appealing,
0:05:42 > 0:05:44it will add to its charm and character.
0:05:44 > 0:05:48But some people will be put off because they realise that the burden of responsibility
0:05:48 > 0:05:51and the constraints that that places upon you.
0:05:51 > 0:05:55I think the cosmetic upgrades required really are the decoration, it needs a lick of paint.
0:05:55 > 0:05:58The carpet tiles will need to be cleaned or changed
0:05:58 > 0:06:00and I'd get rid of the coloured light switch.
0:06:00 > 0:06:06But what about values? Not forgetting the property has a guide price of £38,000.
0:06:06 > 0:06:10Once fully renovated, I would expect this property to achieve £70,000.
0:06:10 > 0:06:11And on the rental market?
0:06:11 > 0:06:14Once renovated, I would expect this property to achieve
0:06:14 > 0:06:17somewhere in the region of £425-£450 per calendar month.
0:06:18 > 0:06:21Well, you need to be superfit to get up to the top floor,
0:06:21 > 0:06:26but once you arrive in the flat... Wow. What a lovely surprise it is.
0:06:26 > 0:06:30It's not in bad nick and I absolutely love the character
0:06:30 > 0:06:34that the staircase and the outside areas and the flat have.
0:06:34 > 0:06:40In the brewing tradition of Burton-on-Trent, I would definitely raise a glass to that.
0:06:40 > 0:06:44Let's see who had the same opinion as me when it went to auction.
0:06:44 > 0:06:48Lot 24. It's a one-bedroom,
0:06:48 > 0:06:52second floor apartment in a period building.
0:06:52 > 0:06:5738 plus is the guide price. Who'd like to start me at 38? 38?
0:06:57 > 0:07:0436? Who's got 35? 34,000? 34 and we're away, thank you.
0:07:04 > 0:07:08At £34,000. Very handy money for a one-bedroom flat.
0:07:08 > 0:07:14At 34,000. 35 somewhere? Opening bid at 34, 35 is bid.
0:07:14 > 0:07:20At 35,000... 36? 36. At 36,000.
0:07:20 > 0:07:2537, on my left. At 37. 500? 37,500.
0:07:25 > 0:07:3138? 37,500.
0:07:31 > 0:07:3638, quickly someone else? At £37,500...
0:07:36 > 0:07:4038. At 38... 38,500.
0:07:40 > 0:07:4339. At 39 and 5 again?
0:07:44 > 0:07:48Lady's bid at 39,000, it's in the market, ladies and gentlemen,
0:07:48 > 0:07:51it's going to be sold. £39,000 is the bid.
0:07:51 > 0:07:54For the first time at 39.
0:07:54 > 0:07:59For this second time at 39. Last opportunity, any higher bid for it?
0:07:59 > 0:08:02It's sold at 39,000. 125, thank you.
0:08:02 > 0:08:05Sold to Michelle for 39,000.
0:08:05 > 0:08:08Just £1,000 more than the guide price.
0:08:08 > 0:08:12Michelle recently took redundancy from high-end engine manufacturers,
0:08:12 > 0:08:15where she worked as a project manager.
0:08:15 > 0:08:19I met her back at the flat to discuss her first property project bought at auction.
0:08:21 > 0:08:26- Michelle, congratulations. - Thank you.- So, tell me what happened on auction day.- OK.
0:08:26 > 0:08:31Well, I'd got five properties that I was looking out
0:08:31 > 0:08:36and three of them I was going to put bids on and this one came up first and it was a bargain, so I bought it.
0:08:36 > 0:08:38The only concern I had was if there was a problem with the roof,
0:08:38 > 0:08:42but I've had it checked out and it's fine. So, it looks like it's a bargain.
0:08:42 > 0:08:44So, what is the plan for this flat in particular?
0:08:44 > 0:08:48Well, definitely going to do some refurbishment to it
0:08:48 > 0:08:50and then get it straight on to rental.
0:08:50 > 0:08:54- What are you going to do improve this? It's such a lovely little flat anyway.- OK.
0:08:54 > 0:08:57Well, it just needs completely replastering.
0:08:57 > 0:09:02I need to put some new tiles into the fireplace,
0:09:02 > 0:09:05a fire into it and some work on the bathroom.
0:09:05 > 0:09:10- So, let's first of all talk about the plastering. So, you are going to replaster the whole flat?- Yes.
0:09:10 > 0:09:13- Wow. Really?- Just to skim it, yes. - OK.
0:09:13 > 0:09:16Just to completely freshen it up and make it look crisp and clean and tidy.
0:09:16 > 0:09:21- Yes, as you can see, there's a bit of damp under the window, just to totally freshen it.- OK.
0:09:21 > 0:09:26- And those beautiful windows?- Yes, they're going to get a nice painted
0:09:26 > 0:09:31- and they've just been freshly painted outside yesterday.- So, how amazing. The exterior of the building
0:09:31 > 0:09:36- has already been freshly painted for you.- Yes. Well, it's part of the management fee.
0:09:36 > 0:09:39And yes, I came yesterday, there was scaffolding floor-to-ceiling
0:09:39 > 0:09:43and I was thinking, "Oh, you're going to be able to film it." But it went overnight.
0:09:43 > 0:09:47- How amazing. Are you pleased with the job they've done?- Yes.
0:09:47 > 0:09:51- Yeah, they've done a really good job. - Even though you've had these beautiful windows installed,
0:09:51 > 0:09:55- they're not double glazed and you can hear the traffic outside.- Yeah.
0:09:55 > 0:09:58Do you think that's going to bother anybody?
0:09:58 > 0:10:00Well, I hope not. There is nothing more we can do, really.
0:10:00 > 0:10:04Cos, obviously, it's listed you can't do any more glazing to it.
0:10:04 > 0:10:09So, hopefully, the road won't be so noisy when you've got other things in the room...
0:10:09 > 0:10:13- the telly on, you probably won't hear it as much.- I tell you what I really loved,
0:10:13 > 0:10:17the fact that you walk in the front door, along the little corridor to a second door
0:10:17 > 0:10:20and then there's a courtyard. It's like a nice surprise, isn't it?
0:10:20 > 0:10:22The shared areas are lovely in this property.
0:10:22 > 0:10:26And that's one of the things that really made me think, "Yeah, I definitely want to buy this."
0:10:26 > 0:10:30And also you've got that amazing staircase with the banisters
0:10:30 > 0:10:33- and the balustrade, it's beautiful. - Yeah, it is. And that's one of the things about the listed
0:10:33 > 0:10:36that I really wanted to go for. So, that's what I think will sell it
0:10:36 > 0:10:40when people come in through the door and see how nice it is.
0:10:40 > 0:10:44It's so important that the front facade and communal areas are well kept
0:10:44 > 0:10:48as they are the first thing a potential buyer or tenant will see.
0:10:48 > 0:10:53I'm really pleased to see that the £800-a-year service charge is being put to good use.
0:10:53 > 0:10:57It should help with the search for a tenant when Michelle comes to letting the flat out.
0:10:59 > 0:11:03- So, what about your kitchen and bathroom? Anything there?- Yes.
0:11:03 > 0:11:09So, the kitchen is going to be redeveloped with all new doors and appliances.
0:11:09 > 0:11:13And the bathroom, at the moment, is a strange shower arrangement.
0:11:13 > 0:11:15LUCY LAUGHS
0:11:15 > 0:11:18We'll have a nice bath placed in it and a nice vanity unit.
0:11:18 > 0:11:21At the moment it's just like a TARDIS in the middle of a room.
0:11:21 > 0:11:24- It's like, "Oh, there's the stand-up shower."- It is entertaining.
0:11:24 > 0:11:27But, obviously, people rented it before, but I want to make it look nicer.
0:11:27 > 0:11:32- So, you're going to have a bath put in there as well?- Yes.- Fantastic, I love that idea.
0:11:32 > 0:11:35Maybe a P-shaped one, so you can keep the shower as it is.
0:11:35 > 0:11:39So, Michelle, why property? It's so different from what you were doing before.
0:11:39 > 0:11:43Well, I just wanted to do something different. I was a project manager
0:11:43 > 0:11:47and project management skills are the same in a property.
0:11:47 > 0:11:49So, I thought I could make some more money out of it.
0:11:49 > 0:11:54- So, would you say you're a very efficient person and this role will suit you beautifully?- Yes.
0:11:54 > 0:11:56I would say definitely. Anyone who knows me will tell you I am.
0:11:56 > 0:11:58Come on. What are you like, tell me?
0:11:58 > 0:12:02Well, I can be persistent
0:12:02 > 0:12:06- and delivery and cost shouldn't be too much of a problem.- Really?
0:12:06 > 0:12:09- Is that what you're all about? - Yes, so it's all about planning
0:12:09 > 0:12:12and I've already had people in to give me prices and things like that.
0:12:12 > 0:12:14So, as soon as you've gone, people will start work.
0:12:14 > 0:12:17- And you're a thorough? You're on it? Clipboard lady.- That's it.
0:12:17 > 0:12:21I've been walking round here with a plan. Do it faster, come on, quicker.
0:12:21 > 0:12:24- Quicker, cheaper, faster, now, tomorrow...- Yes.
0:12:24 > 0:12:27- ..today, even.- Definitely. - So, have you got a healthy budget?
0:12:27 > 0:12:31I think at the moment I've had some estimates in and it should be about 5,000.
0:12:31 > 0:12:36£5,000 for new kitchen, new bathroom, skimming, new carpets?
0:12:36 > 0:12:39- Yes.- How long is this going to take you?
0:12:39 > 0:12:42I'm planning to take about eight weeks.
0:12:42 > 0:12:45So, there's not too much to do. So, I want to take about eight weeks.
0:12:45 > 0:12:49- And what are you going to be like if it goes over?- It won't go over and it won't go over budget.
0:12:49 > 0:12:53So, what you most excited about with this venture?
0:12:53 > 0:12:58I just want to see the before and after. It's just the... This is what I like doing,
0:12:58 > 0:13:00I wanted to do it for years and I've got an opportunity.
0:13:00 > 0:13:03- So, this is what I want to do.- Are you quite excited or a little bit nervous?
0:13:03 > 0:13:07Because you are actually giving up a job you've done for many years.
0:13:07 > 0:13:11No, excited. It's a new challenge. Everyone needs a new challenge.
0:13:11 > 0:13:16- Michelle, I'm so excited for you. Good luck with your first project. - Thank you.- Thank you.
0:13:18 > 0:13:22So, this flat marks a new start and a change of direction for Michelle.
0:13:22 > 0:13:27And I have no doubt she has the drive to succeed.
0:13:27 > 0:13:31I think she's paid a great price for this flat, but is there something we don't know,
0:13:31 > 0:13:34will there be a spanner in the works?
0:13:34 > 0:13:37Join me later in the programme and you can find out.
0:13:40 > 0:13:44Whilst we're on the subject of fresh starts, the town of Kirkcaldy
0:13:44 > 0:13:48on the east coast of Scotland is certainly having one of its own.
0:13:48 > 0:13:51It's in an area known as the Kingdom of Fife,
0:13:51 > 0:13:55which has glorious beaches and pretty fishing villages.
0:13:55 > 0:13:59Its harbour was pivotal in the exports and imports required
0:13:59 > 0:14:04for the linoleum industry, in which Kirkcaldy was a world leader.
0:14:04 > 0:14:08Now, the town has had its ups and downs over the years
0:14:08 > 0:14:11and, in 1992, the harbour closed.
0:14:11 > 0:14:16But, in 2011, it reopened as part of a major rejuvenation
0:14:16 > 0:14:20and regeneration programme for both the town and the local area.
0:14:26 > 0:14:28Overshadowed by its neighbour,
0:14:28 > 0:14:31Glenrothes, Kirkcaldy nonetheless has good transport links
0:14:31 > 0:14:35to the motorway, and a train station on the mainline.
0:14:35 > 0:14:39With its lovely beach and a recent upturn in fortunes, I think
0:14:39 > 0:14:42Kirkcaldy could be just the place for a brave soul to
0:14:42 > 0:14:45dip their toe into the property waters.
0:14:45 > 0:14:50So, on these blazing streets in this Scottish summer,
0:14:50 > 0:14:55what have I come to see? Well, something kind of unexpected.
0:14:56 > 0:15:01Er, it had a guide price of less than £5,000.
0:15:01 > 0:15:03But then it's only a WEE place!
0:15:05 > 0:15:10Yeah. Former public conveniences.
0:15:10 > 0:15:11Toilets.
0:15:12 > 0:15:13This is the gents.
0:15:15 > 0:15:18# Ooh, ooh, wee
0:15:18 > 0:15:19# Ooh, wee
0:15:19 > 0:15:22# Ah-la-la-la, la la la la la la la... #
0:15:22 > 0:15:24Well, when you've got to go...
0:15:24 > 0:15:26# Ooh, ooh, wee... #
0:15:26 > 0:15:27What we have here, then,
0:15:27 > 0:15:32is a mid-to-late-20th-century brick-built block.
0:15:32 > 0:15:35And you don't have to be too FLUSH to manage that guide price
0:15:35 > 0:15:37of 5,000 quid.
0:15:37 > 0:15:39Time for me to have a sniff around.
0:15:40 > 0:15:42It does feel decidedly weird!
0:15:42 > 0:15:44But what have we got?
0:15:44 > 0:15:47Basically, one room that's been cleared out.
0:15:47 > 0:15:49So I suppose that's good news.
0:15:49 > 0:15:53I was expecting to see urinals and cubicles. All that's gone.
0:15:53 > 0:15:54A little store cupboard there,
0:15:54 > 0:15:56probably used by a cleaner or whatever.
0:15:56 > 0:15:58And that's basically it.
0:15:59 > 0:16:01No, really!
0:16:08 > 0:16:11Well, it's not exactly two-up, two-down, but thankfully,
0:16:11 > 0:16:14you can't tell it was once a toilet any more.
0:16:14 > 0:16:17# Don't break the waters...
0:16:19 > 0:16:21It does have two rooms, though.
0:16:21 > 0:16:26You've guessed it, a gents and a ladies. I'm goin' in!
0:16:29 > 0:16:32Man coming in. All clear?
0:16:32 > 0:16:33HE LAUGHS
0:16:33 > 0:16:38This was the ladies' side. Pretty much a mirror image of the gents'.
0:16:39 > 0:16:44And again, it's been cleared out of all the things you might recognise.
0:16:44 > 0:16:46The toilets have all gone.
0:16:46 > 0:16:49What I am drawn to straightaway is the fact that there is a board
0:16:49 > 0:16:52over there with all the electricity on it, so you've got services.
0:16:52 > 0:16:55You got electricity. You would have had water.
0:16:55 > 0:16:57You will definitely have sewerage!
0:16:57 > 0:17:00All things which cost a lot of money when it comes to renovating a place.
0:17:00 > 0:17:04Now, it has already been knocked through, probably as part of the clearing process.
0:17:04 > 0:17:07And, yes, it looks like a bit of a mess.
0:17:07 > 0:17:10But I'm already thinking about what this could potentially become.
0:17:10 > 0:17:13It's got the basics there. You know what they say.
0:17:13 > 0:17:17Where there's muck, among other things, there's brass.
0:17:22 > 0:17:26Of course, the loos don't have to stay as loos and,
0:17:26 > 0:17:28once you've washed your hands of their past,
0:17:28 > 0:17:32what you basically have here is a brick block near local shops
0:17:32 > 0:17:37and transport, which looks and smells a whole lot rosier.
0:17:38 > 0:17:41Well, at the back of the toilets there's a little bit of extra space.
0:17:41 > 0:17:46It all adds to the footprint of what is actually not a bad sized lot.
0:17:48 > 0:17:52# Baby, don't you leave me this way... #
0:17:54 > 0:17:57On the surface, it's a rotten, old, abandoned toilet.
0:17:57 > 0:17:59But, I think, if you dig a little deeper,
0:17:59 > 0:18:02some potential starts shining through.
0:18:05 > 0:18:08Now, at this point you are probably thinking,
0:18:08 > 0:18:12"Who on earth would consider buying that?"
0:18:14 > 0:18:17Well, there's one piece of the jigsaw that
0:18:17 > 0:18:19I haven't told you that could make all the difference.
0:18:19 > 0:18:22Because the building has got planning permission
0:18:22 > 0:18:27for conversion to a fast-food outlet.
0:18:27 > 0:18:29Ah! You start viewing it in a different light.
0:18:29 > 0:18:32The fact that it's on a busy main road, it's by existing shops,
0:18:32 > 0:18:35in obviously a fairly residential area and, at the back of it,
0:18:35 > 0:18:40there's this huge, big, free car park. You know what?
0:18:40 > 0:18:45A business like that, in there, could actually work.
0:18:45 > 0:18:48So where there's muck there's brass, perhaps.
0:18:48 > 0:18:52And let's not forget that £5,000 guide price.
0:18:52 > 0:18:55Is that possible potential I hear knocking on the door?
0:18:58 > 0:19:00We asked a local property expert to visit
0:19:00 > 0:19:02the little boys' room for us, as it were.
0:19:05 > 0:19:08First impression of this property? I have to say, it does, at the moment,
0:19:08 > 0:19:12look a bit like a public toilet or a pillbox, to be honest.
0:19:13 > 0:19:17It's been stripped back, it's very basic condition,
0:19:17 > 0:19:19but then you've got a blank canvas.
0:19:19 > 0:19:22It's already got planning consent for a hot-food carry-out.
0:19:22 > 0:19:26The alternative use has got to be a small shop or an office,
0:19:26 > 0:19:28perhaps a taxi office.
0:19:28 > 0:19:30The council would be delighted to see this brought
0:19:30 > 0:19:34back into beneficial use and I think there are a number of options for it.
0:19:35 > 0:19:38Sounds very positive indeed.
0:19:38 > 0:19:42What kind of resell value would this have if it were a takeaway?
0:19:44 > 0:19:48If you had the property let as a hot-food carry-out and, for instance,
0:19:48 > 0:19:54let's say it was producing about £3,000 a year, I think you'd probably
0:19:54 > 0:19:58be looking at a capital value of about eight times the passing rent.
0:19:58 > 0:20:02So that would be round about £20,000-£25,000.
0:20:02 > 0:20:04And if it were rented out?
0:20:04 > 0:20:06I think that if you could get a tenant
0:20:06 > 0:20:08who'd got a good-going business
0:20:08 > 0:20:10in here for hot-food carry-out,
0:20:10 > 0:20:15you might be able to get something around £250 per calendar month.
0:20:15 > 0:20:19I actually think this is a very interesting opportunity.
0:20:19 > 0:20:22Good location, car park, planning permission...
0:20:22 > 0:20:27The big question is, will whoever buys it take, in fact,
0:20:27 > 0:20:30a more CISTERN-matic approach?
0:20:30 > 0:20:32I couldn't resist it. Let's go to the auction.
0:20:38 > 0:20:41So lot number three. Good redevelopment opportunity.
0:20:41 > 0:20:44We've sold a few public conveniences before.
0:20:44 > 0:20:47Somebody start me off at £5,000.
0:20:47 > 0:20:485,000 anywhere?
0:20:50 > 0:20:512,000, then, anywhere?
0:20:51 > 0:20:541,000. I'll take 1,000, thank you.
0:20:54 > 0:20:56At 1,000, looking for 2,000.
0:20:56 > 0:20:58I'll take 1,500 if it helps anybody.
0:20:58 > 0:21:001,500 I have. 2,000, 2,500.
0:21:02 > 0:21:033,000?
0:21:03 > 0:21:06I'll take 250 if it helps, 2,750.
0:21:07 > 0:21:08No?
0:21:08 > 0:21:102,500?
0:21:10 > 0:21:132,750. 3,000?
0:21:13 > 0:21:153,250...not at that?
0:21:15 > 0:21:18OK. 3,000 is our current bid, are we all done? Any other interest?
0:21:18 > 0:21:203,250.
0:21:20 > 0:21:233,250 is our bid, any other interest?
0:21:25 > 0:21:273,500. 3,750? I have.
0:21:29 > 0:21:324,000. 4,000, I've got. 4,250.
0:21:32 > 0:21:36No, not this time. 4,250 I'm looking for. Are we all done?
0:21:36 > 0:21:374,000 going once...
0:21:39 > 0:21:40..twice...
0:21:40 > 0:21:42third and final time. GAVEL BANGS
0:21:42 > 0:21:45Sold to the gentleman in the blue shirt in the aisle.
0:21:45 > 0:21:46Thank you very much.
0:21:47 > 0:21:49He's right to look pleased.
0:21:49 > 0:21:51With a successful bid of £4,000,
0:21:51 > 0:21:55coming £1,000 under the guide price, Phil,
0:21:55 > 0:21:56an experienced property developer
0:21:56 > 0:22:01and full-time landlord from Rosyth has bagged himself a bargain.
0:22:01 > 0:22:06And he's got form in buying unusual properties - we've seen him
0:22:06 > 0:22:09on Homes Under The Hammer before along with his business partner,
0:22:09 > 0:22:14Brian, when he bought this disused community centre in Dunfermline
0:22:14 > 0:22:17and converted it into a dance studio.
0:22:18 > 0:22:22I met him back in the gents to find out his plans for this property.
0:22:22 > 0:22:25I've been really looking forward to meeting the person
0:22:25 > 0:22:28- who bought this, and it's you. - That's right.
0:22:28 > 0:22:31Tell me why you wanted to buy this?
0:22:31 > 0:22:35I thought that I could make it into a hot-food outlet and let it out.
0:22:35 > 0:22:38- Right.- That's the idea behind the purchase.- Right.
0:22:38 > 0:22:41I tried to buy it a number of years ago, but I was outbid.
0:22:41 > 0:22:45- The person that bought it bought it for £24,500.- Wow!
0:22:45 > 0:22:48It came up again, so I thought, "I'll have another try,"
0:22:48 > 0:22:49and I managed to buy it.
0:22:49 > 0:22:53Now, somebody bought it for £24,500 and did anything to it, or nothing?
0:22:53 > 0:22:57I think all they did was rip the inside out, stripped it back.
0:22:58 > 0:23:01- They did away with the urinals and all the cubicles.- Right.
0:23:01 > 0:23:06So I've got a practically derelict building, that's what I've bought.
0:23:06 > 0:23:10Phil has done his homework and knows this property already
0:23:10 > 0:23:13has planning permission for a fast-food outlet,
0:23:13 > 0:23:18making his timescale of two to three months achievable. But why here?
0:23:18 > 0:23:20Why this place?
0:23:20 > 0:23:22The location's good because it's in a shopping area,
0:23:22 > 0:23:26it's beside other businesses, you can see it -
0:23:26 > 0:23:31- it's very, very visible and it's a fairly big toilet.- Yes!
0:23:31 > 0:23:35- A fairly big toilet on two levels. - Yeah.
0:23:35 > 0:23:37This top area, they tell me, will be the kitchen area and toilet
0:23:37 > 0:23:41and the front area will be the serving part of it,
0:23:41 > 0:23:44so there's quite a bit of work to do to bring it up.
0:23:44 > 0:23:49I've been advised that it will cost round about between 15 and 30.
0:23:49 > 0:23:52And that's to get it completely sorted out?
0:23:52 > 0:23:55- Roof, electrics, floor...?- Yeah.
0:23:55 > 0:24:00- The architect's told me including his bill, I'll be £25,000.- Right.
0:24:00 > 0:24:03But who knows?
0:24:03 > 0:24:06Phil knows he could spend as much as this place could be worth,
0:24:06 > 0:24:08but he's taking a long-term view
0:24:08 > 0:24:11that the rental return is worth having.
0:24:11 > 0:24:13It's an unusual purchase for sure.
0:24:13 > 0:24:16Has he had any WEE jokes made at his expense?
0:24:16 > 0:24:20I've had, "Well, just take the I out the toilet and it'll be to let,"
0:24:20 > 0:24:26I've had, "You should call it The Wee Takeaway," I've had that...
0:24:26 > 0:24:29I've had all these things, aye, and they'll all watch me
0:24:29 > 0:24:32with interest because everybody loves a failure.
0:24:32 > 0:24:35- No, we don't want it to fail at all! - Not at all.
0:24:35 > 0:24:36I just wondered if you might have had
0:24:36 > 0:24:39- a few raised eyebrows from people? - Definitely.
0:24:39 > 0:24:41I had one this morning, a friend of mine, and he said,
0:24:41 > 0:24:43"When's Home Under The Hammer?" I says, "The day,"
0:24:43 > 0:24:47he says, "Phil, that's a terrible decision, buying that place."
0:24:47 > 0:24:52And he's a really sensible chap, so we'll see.
0:24:52 > 0:24:53We'll see.
0:24:55 > 0:24:59So lots of Phil's friends and colleagues laughing at him
0:24:59 > 0:25:00for what he's done here and on the face of it,
0:25:00 > 0:25:02I suppose you can understand why.
0:25:02 > 0:25:05However, what he's got here is a commercial unit
0:25:05 > 0:25:10in a really popular location, lots of passing traffic, free car park,
0:25:10 > 0:25:12planning permission for a commercial unit...
0:25:12 > 0:25:15They could be laughing on the other side of their faces
0:25:15 > 0:25:19when he's finished. You can find out who he gets on later in the show.
0:25:20 > 0:25:24Still to come... In Ferndale, Wales, I get straight to the point.
0:25:24 > 0:25:27Kitchen here... It's all right, I suppose.
0:25:27 > 0:25:28No, it's not.
0:25:28 > 0:25:30Take it out, replace it.
0:25:31 > 0:25:34And in Kirkcaldy, Scotland, the truth comes out.
0:25:34 > 0:25:37A toilet's quite a good gamble for a property investor
0:25:37 > 0:25:40who knows about planning, which I don't.
0:25:47 > 0:25:51Over to Burton-on-Trent again, where I earlier looked around
0:25:51 > 0:25:55this one-bedroom flat that had a guide price of just £38,000.
0:25:59 > 0:26:02It was in a listed building and had a lovely courtyard,
0:26:02 > 0:26:05and once I'd made my way up the numerous
0:26:05 > 0:26:09but gorgeous steps to the flat, I found it really inspiring.
0:26:10 > 0:26:13What I really like about this room here is that you can see
0:26:13 > 0:26:15what it will be like dressed up.
0:26:15 > 0:26:18Nice fireplace, you could have a great big mirror over here,
0:26:18 > 0:26:22some lovely curtains... It's got a great feel to it, this flat.
0:26:22 > 0:26:25It's very handsome, it looks good, it feels good
0:26:25 > 0:26:28and I can imagine this will be a fantastic flat for somebody.
0:26:30 > 0:26:33And that somebody was Michelle who bought it
0:26:33 > 0:26:36for £39,000 on auction day.
0:26:36 > 0:26:39Former project manager Michelle had recently taken redundancy
0:26:39 > 0:26:43and decided to move into property renovation as a new career,
0:26:43 > 0:26:46although she certainly wasn't to be trifled with.
0:26:46 > 0:26:48As soon as you've gone, people will start work.
0:26:48 > 0:26:51And you're thorough, you're on it. Clipboard lady.
0:26:51 > 0:26:53That's it, I've been walking round with a plan -
0:26:53 > 0:26:55"Do it faster. Come on, quicker."
0:26:55 > 0:26:59"Quicker, cheaper, faster, now, tomorrow...today, even."
0:26:59 > 0:27:01Definitely.
0:27:01 > 0:27:04So Michelle was hoping that her background in project management
0:27:04 > 0:27:06would stand her in good stead.
0:27:06 > 0:27:11And with a strict budget of £5,000 and a timescale of eight weeks
0:27:11 > 0:27:14to transform this dated and tired flat
0:27:14 > 0:27:19into a desirable rental property, I was eager to see how she'd get on.
0:27:21 > 0:27:24Eight weeks later, bang on Michelle's schedule,
0:27:24 > 0:27:29we're back in Burton-on-Trent to see just how Michelle has progressed.
0:27:50 > 0:27:53Good to see that the space-wasting shower cubicle
0:27:53 > 0:27:55is a thing of the past.
0:28:03 > 0:28:07So, in the bathroom, before there was a shower cubicle here.
0:28:07 > 0:28:09Like a TARDIS effect.
0:28:09 > 0:28:12Now, we've replaced it with a nice L-shaped bath,
0:28:12 > 0:28:16there's a new toilet, kept the same sink, kept the same tiles,
0:28:16 > 0:28:21new blind and a new shower rail.
0:28:21 > 0:28:22I really like it now.
0:28:22 > 0:28:26Before, it was a real eyesore and I think it looks nice now.
0:28:26 > 0:28:28It's a nice, clean, fresh bathroom.
0:28:28 > 0:28:29Quite right too.
0:28:29 > 0:28:32In fact, the whole flat is looking fresher and more homely.
0:28:39 > 0:28:42Michelle has installed new central heating, replastered,
0:28:42 > 0:28:46wallpapered and painted in the living room and the bedroom.
0:28:46 > 0:28:49And in the kitchen, she's fitted new kitchen doors
0:28:49 > 0:28:50and installed a boiler.
0:28:50 > 0:28:52As we know on Homes Under The Hammer,
0:28:52 > 0:28:56timescales and budgets can be hostages to fortune.
0:28:56 > 0:28:58So, has she been sticking to them?
0:28:58 > 0:29:01It's taken exactly eight weeks, which was the plan.
0:29:01 > 0:29:04The last week has been very challenging
0:29:04 > 0:29:08to stick to that timescale but I've managed to achieve it.
0:29:08 > 0:29:12Excellent. But what about that budget of £5,000?
0:29:12 > 0:29:16So, I've ended up spending approximately £6,500.
0:29:16 > 0:29:19The main increase was, as I said to you last time,
0:29:19 > 0:29:22it would be £5,000 but I wasn't replacing the boiler,
0:29:22 > 0:29:25and the boiler cost nearly £3,000 because I had to replace
0:29:25 > 0:29:28a lot of the piping outside cos it was so old.
0:29:28 > 0:29:31So that was the major cost of going over.
0:29:32 > 0:29:36Often, it's the unseen issues that tend to end up costing you money.
0:29:36 > 0:29:39However, I think replacing the boiler is a very wise move
0:29:39 > 0:29:41in terms of having a tenanted property.
0:29:41 > 0:29:45After all, not only will it be more efficient in terms of energy,
0:29:45 > 0:29:47it would mean it's safer too.
0:29:47 > 0:29:50So, how has swapping an office job
0:29:50 > 0:29:52for dustsheets and decor suited her?
0:29:52 > 0:29:58So, during this time, I have been project manager, cleaner,
0:29:58 > 0:30:01painter, decorator.
0:30:01 > 0:30:03I put my hand to everything.
0:30:03 > 0:30:06I've obviously had tradespeople in as well
0:30:06 > 0:30:08but, no, I've definitely got my hands dirty.
0:30:08 > 0:30:12I've kept the workmen on their toes by being here early
0:30:12 > 0:30:16so that they can get into the property and also provide them
0:30:16 > 0:30:19with lots of tea and coffee and also being a builder's mate.
0:30:19 > 0:30:22I've been passing things and collecting things and
0:30:22 > 0:30:24backwards and forwards to the DIY shops
0:30:24 > 0:30:29to get all the different items that they haven't got and that they need.
0:30:29 > 0:30:32I think they'll say I was challenging, to say the least.
0:30:32 > 0:30:34No harm in cracking the whip, I say.
0:30:34 > 0:30:37But now the job's done and the workmen have left,
0:30:37 > 0:30:39how is she feeling?
0:30:39 > 0:30:42I'm really pleased with the way the flat's turned out in the end.
0:30:42 > 0:30:46Towards the last week, it's really come together
0:30:46 > 0:30:50and it's nice to see the finishing results. It's been...
0:30:50 > 0:30:53I hated it at times, but now I really like it.
0:30:53 > 0:30:57I think it's got nice style about it.
0:30:57 > 0:31:01Well, with total investment here of £45,500,
0:31:01 > 0:31:04it will be interesting to hear what two local property experts
0:31:04 > 0:31:07make of Michelle's first auction purchase.
0:31:08 > 0:31:12I think the property's great. We're close to Burton town centre.
0:31:12 > 0:31:15It's a lovely, compact flat on the top floor
0:31:15 > 0:31:16and I think it's a superb property.
0:31:16 > 0:31:21Yes, I think the finish done over here is at a high standard.
0:31:21 > 0:31:23I couldn't expect anything more,
0:31:23 > 0:31:26you can't do anything more to this property.
0:31:27 > 0:31:29The estate agents are impressed,
0:31:29 > 0:31:32and with Michelle eager to rent the property out,
0:31:32 > 0:31:34let's hear their rental predictions.
0:31:34 > 0:31:37I think, on the rental side of things,
0:31:37 > 0:31:43this flat should be able to achieve £400 to £425 per calendar month.
0:31:43 > 0:31:46I would have thought that this flat would rent for around about £475
0:31:46 > 0:31:47per calendar month.
0:31:47 > 0:31:50That's excellent. That's higher than I was expecting.
0:31:50 > 0:31:53I was thinking round about £400 but £475, very nice.
0:31:55 > 0:31:59Well, if she was to achieve £475 per calendar month,
0:31:59 > 0:32:04that would mean a yield of around 12.5%, which is very nice indeed.
0:32:06 > 0:32:10Added to the estate agent's top valuation of £65,000,
0:32:10 > 0:32:14that could mean a pre-tax profit of £19,500,
0:32:14 > 0:32:17which makes Michelle's first foray into property renovation
0:32:17 > 0:32:19a big success.
0:32:19 > 0:32:22However, after all the whip cracking on this project,
0:32:22 > 0:32:25will the builders come back for another?
0:32:26 > 0:32:29I'm sure my builders will want to work for me again.
0:32:29 > 0:32:34I pay on time and can be very pleasant to them.
0:32:41 > 0:32:4420 miles north of Cardiff is Ferndale,
0:32:44 > 0:32:48a former coal mining village that sits within the Rhondda valley.
0:32:51 > 0:32:56Well, in the hills above Ferndale, you find this.
0:32:56 > 0:32:59Known as the Maiden's Pool.
0:32:59 > 0:33:02Well, legend has it that a Welsh enchantress
0:33:02 > 0:33:05lives at the bottom of the lake.
0:33:05 > 0:33:06How romantic.
0:33:06 > 0:33:10Let's hope that the property I'm here to see is just as enchanting.
0:33:11 > 0:33:15And the property is located just a short drive away down the valley.
0:33:17 > 0:33:22So, what am I here to see? Well, a two bedroomed mid terrace.
0:33:22 > 0:33:26Guide price, £29,000. Let's take a look.
0:33:26 > 0:33:28That's an encouraging price,
0:33:28 > 0:33:32but just as this house seemed to be shaping up well...
0:33:32 > 0:33:36It looks like the whole of the front of this house is actually
0:33:36 > 0:33:37leaning this way.
0:33:37 > 0:33:39That's not a good start.
0:33:41 > 0:33:45It is potentially one of those properties where you wouldn't
0:33:45 > 0:33:47necessarily go any further than the front door,
0:33:47 > 0:33:51but let's see what it has to offer.
0:33:51 > 0:33:53Well, that's actually quite a surprise.
0:33:53 > 0:33:58Into this room, which is, for this kind of house, pretty large.
0:33:58 > 0:34:01It's two rooms that have been knocked together at some stage
0:34:01 > 0:34:04to create this really nice sized space.
0:34:04 > 0:34:09But it's kind of wobbling this way.
0:34:09 > 0:34:14Wobbling? Well, no, slanting. You know what I mean. And the fireplace?
0:34:18 > 0:34:22I'm reminded of one of those Western bars where you slide a drink down.
0:34:22 > 0:34:23It would be very easy here
0:34:23 > 0:34:27because it would slide perfectly well in one direction.
0:34:28 > 0:34:31Right. Can you imagine trying to fit furniture or trying to find
0:34:31 > 0:34:38a square point of reference for doorframes or skirting boards
0:34:38 > 0:34:40or anything in this house.
0:34:40 > 0:34:41It's, like, bad.
0:34:44 > 0:34:47Yes, I know. It's not always easy to see on your TV screen,
0:34:47 > 0:34:52but take my word for it, this place is all a little bit wonky.
0:34:52 > 0:34:55The general state isn't too good either.
0:34:55 > 0:34:58# Because I'm bad, I'm bad
0:34:58 > 0:35:00# Really, really bad Who's bad? #
0:35:00 > 0:35:01But, on a positive note,
0:35:01 > 0:35:04there aren't any obvious signs of recent cracking,
0:35:04 > 0:35:07which tends to suggest that this is historical movement
0:35:07 > 0:35:10and therefore not something to be unduly worried about.
0:35:10 > 0:35:14But I'd still want that checked out by a professional.
0:35:14 > 0:35:19So, kitchen here. You know, it's all right, I suppose. No, it's not.
0:35:19 > 0:35:21Take it out, replace it.
0:35:21 > 0:35:23And, unfortunately, it doesn't get any better as you work towards
0:35:23 > 0:35:25the very back of the property.
0:35:25 > 0:35:28Kitchen here, then this area here which has been
0:35:28 > 0:35:33covered in by this sort of plasticky kind of roof.
0:35:33 > 0:35:35It feels damp, it smells damp.
0:35:35 > 0:35:37Out the back there, wow,
0:35:37 > 0:35:40you're just faced with some massive great retaining wall.
0:35:40 > 0:35:44It's just coming together as a place that has its fair share of issues
0:35:44 > 0:35:48and the wonkiness might be the least of it.
0:35:48 > 0:35:52It's really just dreadfully damp, dilapidated and dingy,
0:35:52 > 0:35:55certainly on the ground floor.
0:35:55 > 0:35:59Outside, the tiny courtyard space and the high walled bit of garden
0:35:59 > 0:36:03would only be enticing to a mountain goat.
0:36:03 > 0:36:07And they don't increase any feelings of fondness for this house.
0:36:08 > 0:36:14So, upstairs, and the property takes a turn for the better.
0:36:14 > 0:36:21Yes, two really nice sized bedrooms and a huge bathroom and loo upstairs.
0:36:21 > 0:36:23Brilliant, and let's try and think about this house
0:36:23 > 0:36:26in a slightly different way.
0:36:26 > 0:36:29The guide price, £29,000.
0:36:29 > 0:36:34Average rental for this kind of house round here, £350 a month.
0:36:34 > 0:36:40That produces a yield, not allowing for doing it up,
0:36:40 > 0:36:45but just on those numbers, of around 14.5%.
0:36:47 > 0:36:51Suddenly, can we put up with the damp and the wonkiness?
0:36:51 > 0:36:52Hmm, possibly.
0:36:55 > 0:36:57# It just might work
0:36:57 > 0:37:01# I'm hoping it just might work
0:37:01 > 0:37:04# Nothing beats a failure but a try
0:37:04 > 0:37:06# It might work
0:37:06 > 0:37:07# Yeah, it might work
0:37:07 > 0:37:09# Yeah, it might work... #
0:37:09 > 0:37:12So, does a local estate agent think this might work?
0:37:16 > 0:37:20The property does need quite a lot of work.
0:37:20 > 0:37:22It structurally seems OK,
0:37:22 > 0:37:25although there is evidence of some
0:37:25 > 0:37:30movement over the years but I don't think it's anything major.
0:37:30 > 0:37:32It's probably historic
0:37:32 > 0:37:37so I don't think there's going to be any recent movement in the property.
0:37:37 > 0:37:42Primarily, the kitchen needs upgrading.
0:37:42 > 0:37:45The bathroom, there's issues with damp in the bathroom,
0:37:45 > 0:37:50and the conservatory needs sorting out as well.
0:37:50 > 0:37:54With average rental figures of £350 per calendar month,
0:37:54 > 0:37:57we know the house's rental potential is good.
0:37:57 > 0:38:00But how would this house, that was guided at £29,000,
0:38:00 > 0:38:03fare on the resell market?
0:38:03 > 0:38:06If I was to put it on the market to sell, depending
0:38:06 > 0:38:13on the standard of work, I would be looking in the region of £60,000.
0:38:13 > 0:38:14That's encouraging.
0:38:14 > 0:38:17So, what is the best option for the house once fully refurbished?
0:38:19 > 0:38:23At the moment, in this area, sales are pretty slow.
0:38:23 > 0:38:26The rental market, on the other hand, is quite buoyant,
0:38:26 > 0:38:29so personally I would go down the route
0:38:29 > 0:38:31of trying to rent the property.
0:38:32 > 0:38:33Well, that's good to know.
0:38:33 > 0:38:36If you want a fast return then this might not be for you.
0:38:36 > 0:38:40But as a long term rental investment, well, it should do OK.
0:38:44 > 0:38:48Well, it's a bit damp and it's a bit wonky.
0:38:48 > 0:38:51So, one to be a little bit careful about.
0:38:51 > 0:38:54Still, let's see who bought it when it went under the hammer.
0:38:56 > 0:38:59Lot number 11.
0:38:59 > 0:39:02Mid-terraced house, stone fronted house with two bedrooms,
0:39:02 > 0:39:05bath on the first floor. Great buy-to-let property.
0:39:05 > 0:39:09Start me at 20 then, if you like. 20 can we see? Put a hand up at 20.
0:39:09 > 0:39:13Thank you, sir. I've got you at 20. At £20,000. Now one I'm looking for.
0:39:13 > 0:39:16I've got 20 there, one can I see?
0:39:16 > 0:39:20At 21, thank you, 21. 22 now, 22.
0:39:20 > 0:39:2523. 24. 25. 26. 27. 28. 28? No.
0:39:25 > 0:39:2827, I've got. You're now out. At 27 here, then.
0:39:28 > 0:39:29Make no mistake, it's going to be sold.
0:39:29 > 0:39:32At 27,000, then, for the first time.
0:39:32 > 0:39:34Second time.
0:39:34 > 0:39:37Third and last time at £27,000.
0:39:37 > 0:39:39Well done, sir. Got yourself a bargain there.
0:39:42 > 0:39:46And so for £2,000 below the guide price at £27,000,
0:39:46 > 0:39:49the two bed terraced house in Ferndale
0:39:49 > 0:39:53was bought by Cardiff-based father and son team Paul and Nathan.
0:39:55 > 0:39:57And with dad Paul busy at work,
0:39:57 > 0:40:01I met up with son Nathan to find out what their plans were for the house.
0:40:03 > 0:40:06- Nathan, good to meet you.- And you. - Congratulations.- Thank you very much.
0:40:06 > 0:40:08Tell me why you wanted to buy this place?
0:40:08 > 0:40:11We're looking to get a portfolio of rental properties together
0:40:11 > 0:40:14so on the road to be doing that, basically.
0:40:14 > 0:40:16- And this is number what?- Three.- OK.
0:40:16 > 0:40:18Are the other ones you've got, are they similar?
0:40:18 > 0:40:20We've got one in Cardiff
0:40:20 > 0:40:23- and we bought one in the same auction as this one as well.- Right.
0:40:23 > 0:40:26Which is just about ten minutes down the road from here.
0:40:26 > 0:40:29- When did you start?- Couple of months ago, not too long at all.
0:40:29 > 0:40:31So, why now?
0:40:31 > 0:40:33We've, over the last couple of years,
0:40:33 > 0:40:37bought a few properties, renovated them and sold them on for profit.
0:40:37 > 0:40:42But just wanted to get rentals now to get a portfolio together.
0:40:42 > 0:40:45So the two are relatively new to property developing
0:40:45 > 0:40:47and they also have day jobs.
0:40:47 > 0:40:51Nathan's a taxi driver and his dad runs his own business.
0:40:51 > 0:40:54He couldn't be here today but he's out to work on the ice-cream van.
0:40:54 > 0:40:58- Ice-cream van?- Ice-cream van, yeah. He's an ice-cream vendor.- Oh, great.
0:40:58 > 0:41:00Yeah, he's been doing it for about 35 years now.
0:41:00 > 0:41:02Wow, like, a traditional ice-cream van?
0:41:02 > 0:41:07- Yeah, old-fashioned ice-cream man. - Oh, fantastic.
0:41:07 > 0:41:09And is that something you've done as well?
0:41:09 > 0:41:10Yeah, I do it through the summer as well.
0:41:10 > 0:41:11Help him out there,
0:41:11 > 0:41:14and I do a bit of taxi driving in the winter as well.
0:41:14 > 0:41:16But the idea is to get slowly into property
0:41:16 > 0:41:19and for this to be the sole occupation.
0:41:19 > 0:41:21# I'm the ice cream man
0:41:21 > 0:41:25# I'm an ice cream man honey I'll be good to you... #
0:41:25 > 0:41:29Well, with three properties scooped up in just a couple of months,
0:41:29 > 0:41:33Nathan and dad Paul hope that their ice cream days might be numbered.
0:41:33 > 0:41:38But this house has quite a lot of work to lick it back into shape.
0:41:38 > 0:41:40What are you going to do to the property
0:41:40 > 0:41:42to get it into a reasonable condition?
0:41:42 > 0:41:44It's suffering from a lot of damp at the moment
0:41:44 > 0:41:47- so we've addressed the problem. - What is it?
0:41:47 > 0:41:50It's a bit of the guttering, bit of the roof.
0:41:50 > 0:41:52It's a number of things, to be honest with you.
0:41:52 > 0:41:56- But we've got that booked in for this week now.- OK.- To get that done.
0:41:56 > 0:41:58We're just going to pull all the walls back then.
0:41:58 > 0:42:00The central heating system is not working at all.
0:42:00 > 0:42:05It's unsafe so it'll be a new combi boiler with new radiators.
0:42:05 > 0:42:09Spruce up the kitchen, new worktops, doors et cetera.
0:42:09 > 0:42:12And flooring, carpets, laminate.
0:42:12 > 0:42:16- Just make it nice, basically.- And is it stuff that you can do yourself?
0:42:16 > 0:42:20I'll be doing parts but we'll be getting people in as well,
0:42:20 > 0:42:24- and turning around quite quickly, hopefully.- What kind of time?
0:42:24 > 0:42:26We're looking at about four to six weeks,
0:42:26 > 0:42:28depending on if anything else crops up.
0:42:28 > 0:42:31Any other problems, but should get it done in four, really.
0:42:31 > 0:42:33And what budget?
0:42:33 > 0:42:37Looking at only about 4,000 to 5,000 on here, so, yeah.
0:42:37 > 0:42:40And then the plan is to get how many in the portfolio?
0:42:40 > 0:42:41As many as possible, basically.
0:42:41 > 0:42:44Keep going, hopefully, so you might see us again.
0:42:44 > 0:42:47- Yeah, for sure. Well, listen, congratulations.- Thank you very much.
0:42:47 > 0:42:50- Good luck with it.- Thank you. - We look forward to seeing how you get on.
0:42:50 > 0:42:51Thank you.
0:42:54 > 0:42:58Well, Nathan doesn't seem too fazed by the challenges ahead here.
0:42:58 > 0:43:02In fact, he seems ice cool.
0:43:02 > 0:43:04Almost the cat that got the cream.
0:43:04 > 0:43:06Yep, he's not too flaky about his plans
0:43:06 > 0:43:10and he probably gives this place 99 out of 100.
0:43:10 > 0:43:11Ooh, enough ice cream puns.
0:43:11 > 0:43:14How will he get on with the challenges ahead?
0:43:14 > 0:43:16Because I think there are many.
0:43:16 > 0:43:19You can find out later in the show.
0:43:22 > 0:43:25Well, that's one property done and dusted.
0:43:25 > 0:43:27How did the other buyers fare?
0:43:27 > 0:43:28Well, let's see if those schedules
0:43:28 > 0:43:31and timescales stood the test of time.
0:43:33 > 0:43:37Back now to Kirkcaldy in Fife where earlier, I looked at a property
0:43:37 > 0:43:41with a small guide price but there was a good reason.
0:43:41 > 0:43:43It's only a wee place.
0:43:45 > 0:43:46Yeah.
0:43:46 > 0:43:49Former public conveniences.
0:43:49 > 0:43:55It was here I met Phil who bought the shell for £4,000
0:43:55 > 0:43:57to turn it into a fast food outlet.
0:43:57 > 0:44:01With the permissions already in place, Phil was thinking long term.
0:44:03 > 0:44:05I think it's going to cost maybe 20, 25 to do it up,
0:44:05 > 0:44:09and I feel, once it's done up, it'll still be worth what I've spent
0:44:09 > 0:44:13if not a wee bit more, but it'll not be a lot more.
0:44:13 > 0:44:16But I think it'll give me a good return, rent-wise.
0:44:16 > 0:44:19Phil had tried to buy the block back in 2008
0:44:19 > 0:44:24but it went beyond his budget for £24,500.
0:44:24 > 0:44:26The then owner had stripped out all the fixtures,
0:44:26 > 0:44:32leaving what the uninitiated might see as, well, a toilet.
0:44:32 > 0:44:34But Phil could see beyond all that.
0:44:36 > 0:44:40So, this top area, they tell me, will be the kitchen area and toilet.
0:44:40 > 0:44:43And the front area will be the serving part of it.
0:44:43 > 0:44:45- Right.- So, there's quite a bit of work to do to bring it up.
0:44:45 > 0:44:51And that's to get it completely sorted out. Roof, electrics, floor.
0:44:51 > 0:44:55Yeah. The architect's told me, including his bill,
0:44:55 > 0:44:57it'll be £25,000.
0:44:57 > 0:45:00- Right.- But who knows?
0:45:00 > 0:45:03Phil's schedule was just two to three months.
0:45:06 > 0:45:0914 months after our first visit, we're back,
0:45:09 > 0:45:13and yes, from the outside, not much has changed.
0:45:13 > 0:45:20# A change would do you good... #
0:45:20 > 0:45:24But, no, the same goes for the inside.
0:45:24 > 0:45:28# A change would do you good
0:45:28 > 0:45:35# A change would do you good... #
0:45:35 > 0:45:37So, what went wrong?
0:45:37 > 0:45:40I bought it and the planning permission had certain
0:45:40 > 0:45:43problems with ventilation, sound, things like that.
0:45:43 > 0:45:46So, I had to get that tidied up which I did.
0:45:46 > 0:45:49Then I had to arrange to get a building warrant,
0:45:49 > 0:45:52and once I had the building warrant, I was able to start the work.
0:45:53 > 0:45:58The work? Hope it didn't cost much. What exactly was the work?
0:45:58 > 0:46:03I had all the rubbish removed. It only took a day and filled one skip.
0:46:03 > 0:46:05I had the electrics checked to make safe
0:46:05 > 0:46:09and we cobbled up the water, because we'd need water to do the work.
0:46:09 > 0:46:11Other than that, I've done very little,
0:46:11 > 0:46:13except for change the padlocks twice.
0:46:13 > 0:46:17I suppose when you look closer compared with how it looked before
0:46:17 > 0:46:23it is now much tidier but it's still a far cry from a hot food outlet.
0:46:23 > 0:46:27# We'll get a Chinese and watch TV... #
0:46:27 > 0:46:29Has it been worth it?
0:46:29 > 0:46:32I'm going to end up having spent £9,500 on the property.
0:46:32 > 0:46:36It was only £4,000 to buy. I've had two sets of architect's fees.
0:46:36 > 0:46:40I've had my lawyer's fees to buy. I've had my lawyer's fees to sell.
0:46:40 > 0:46:43I had to pay the seller's legal fees.
0:46:43 > 0:46:46That was part and parcel of the auction,
0:46:46 > 0:46:48and wee bits and pieces with builders
0:46:48 > 0:46:50and making safe and things like that.
0:46:50 > 0:46:53We did get estimates for the work that required to get done to take it
0:46:53 > 0:46:57to full spec and job done, full planning permission and everything.
0:46:57 > 0:46:59It was coming in at about £30,000, £33,000,
0:46:59 > 0:47:03and that would be a premise ready to open.
0:47:03 > 0:47:06Phil decided against going down that road and his actual
0:47:06 > 0:47:11outlay of £9,500 to get it to this stage is not to be sniffed at.
0:47:11 > 0:47:15However, I suspect Phil has something up his sleeve.
0:47:16 > 0:47:20I'm going to sell it for £18,500 so I'm going to make about £9,000.
0:47:20 > 0:47:22I owned it for about 15 months
0:47:22 > 0:47:25so I've made about £600 a month which is more than I would've
0:47:25 > 0:47:29had if I'd rented the place so I'm just deciding to walk away.
0:47:30 > 0:47:34Having been passed, Phil's modified plans and the building warrant
0:47:34 > 0:47:37added a significant value to the former toilet,
0:47:37 > 0:47:39enabling him to make such a profit.
0:47:39 > 0:47:42But there remains some unanswered questions,
0:47:42 > 0:47:45like did Phil get a good price for his efforts?
0:47:48 > 0:47:53And who best placed to ask than two gents from the property world.
0:47:53 > 0:47:55Local to these parts, we asked them
0:47:55 > 0:47:59if it was convenient to pop in and give us some valuations.
0:47:59 > 0:48:01Consents are at a premium.
0:48:01 > 0:48:04Fife Council don't give out hot food consents very easily so
0:48:04 > 0:48:08a property that has one will likely generate quite a bit of demand.
0:48:08 > 0:48:11The main selling point of the property is that it's
0:48:11 > 0:48:13well located in an established residential area.
0:48:15 > 0:48:18There are both publically owned houses around here plus
0:48:18 > 0:48:20a lot of private stock as well.
0:48:20 > 0:48:23It's next door to the local neighbourhood centre.
0:48:23 > 0:48:25There's good footfall.
0:48:25 > 0:48:30It's a busy little location, so it has potential.
0:48:30 > 0:48:34So, what market value would you put on that potential?
0:48:34 > 0:48:37In its current condition, with planning consent
0:48:37 > 0:48:40and I understand it's got building warrants as well now,
0:48:40 > 0:48:44I would have thought somewhere between about £17,500 and £20,000.
0:48:44 > 0:48:46With the planning consent in place, in its current condition
0:48:46 > 0:48:50it should be capable of attracting a price of £20 to £25,000.
0:48:50 > 0:48:52I think they're both right.
0:48:52 > 0:48:54I think between 17,500 and 25,000
0:48:54 > 0:48:58would be the correct value in its present condition.
0:48:58 > 0:49:01By selling to a private buyer for £18,500,
0:49:01 > 0:49:05Phil was within those valuations and has doubled his money to boot.
0:49:05 > 0:49:09However, would he have been better to see the project through
0:49:09 > 0:49:10and then rent it out?
0:49:11 > 0:49:13If the property was fitted out
0:49:13 > 0:49:17and operational as a hot-food takeaway, I would envisage it
0:49:17 > 0:49:23attracting a rental of £700, maybe £750 per calendar month.
0:49:23 > 0:49:26I would've thought between £800 and £1,000 per calendar month.
0:49:26 > 0:49:29Pleasantly surprised it would be as much as that.
0:49:29 > 0:49:32I would've thought myself something between 575 and 700.
0:49:32 > 0:49:33So, that's good news.
0:49:33 > 0:49:36Good news for the buyer? Let's see.
0:49:36 > 0:49:39If the new owner goes ahead with the fast food operation
0:49:39 > 0:49:43and spends around £30,000 on top of the purchase price he paid Phil,
0:49:43 > 0:49:49he or she will stand to make a pretty healthy yield of around 15%.
0:49:49 > 0:49:51But Phil's not being caught short either.
0:49:51 > 0:49:53He's doubled his money for little effort
0:49:53 > 0:49:57and is still looking out for more toilets at auction.
0:49:59 > 0:50:01I was at a recent auction in Edinburgh where
0:50:01 > 0:50:07a toilet in a small village in Fife sold for £90,000.
0:50:07 > 0:50:11So, a toilet's quite a good gamble for a property investor
0:50:11 > 0:50:14who knows about planning, which I don't.
0:50:14 > 0:50:18Yep, toilets can produce some amazing results.
0:50:18 > 0:50:26# You're amazing just the way you are... #
0:50:32 > 0:50:34# It's a kind of magic
0:50:36 > 0:50:39# It's a kind of magic... #
0:50:39 > 0:50:42We return to Ferndale, just north of Cardiff.
0:50:42 > 0:50:45The lake in Ferndale is supposed to be enchanted,
0:50:45 > 0:50:48but would the two bedroom terrace with the guide price
0:50:48 > 0:50:54of just £29,000 I was here to see be magic?
0:50:54 > 0:51:01Well, it's kind of slanting this way, and the fireplace...
0:51:03 > 0:51:08I'm reminded of one of those Western bars where you slide a drink down.
0:51:08 > 0:51:11It'd be very easy here because it would slide perfectly well.
0:51:15 > 0:51:18Yep, it leaned. It also had damp.
0:51:18 > 0:51:20But that didn't put off Nathan and his father,
0:51:20 > 0:51:25who paid £27,000 for the property, £2,000 under the guide price.
0:51:26 > 0:51:28Tell me why you wanted to buy this place.
0:51:28 > 0:51:32We're looking to get a portfolio of rental properties together,
0:51:32 > 0:51:33- me and my father.- OK.
0:51:33 > 0:51:37He couldn't be here today but he's out to work on the ice-cream van.
0:51:37 > 0:51:39- Ice-cream van?- Ice-cream van, yep.
0:51:39 > 0:51:41He's an ice-cream vendor but the idea is to get
0:51:41 > 0:51:45slowly into property and for this to be the sole occupation.
0:51:46 > 0:51:49Nathan certainly seemed cool with all the work that needed to be done.
0:51:50 > 0:51:54One month later, we returned to see if everything's going well
0:51:54 > 0:51:56and if he's going to make a lot of lolly.
0:51:57 > 0:52:01Right, have we hit our quota of ice-cream puns, now?
0:52:01 > 0:52:03Good. Cue the music.
0:52:03 > 0:52:06# I got the eye of the tiger
0:52:06 > 0:52:08# A fighter
0:52:08 > 0:52:10# Dancing through the fire
0:52:10 > 0:52:13# Cos I am a champion
0:52:13 > 0:52:17# And you're gonna hear me roar
0:52:17 > 0:52:21# Louder, louder than a lion
0:52:21 > 0:52:24# Cos I am a champion
0:52:24 > 0:52:30# And you're gonna hear me roar
0:52:30 > 0:52:32# Oh-oh oh oh oh-oh-oh... #
0:52:32 > 0:52:34It's all looking fresh and welcoming.
0:52:34 > 0:52:38So, how much work had to be done here?
0:52:38 > 0:52:40We've done a lot of plastering.
0:52:40 > 0:52:42New central heating system,
0:52:42 > 0:52:47radiators, carpet, flooring. Everything, really.
0:52:47 > 0:52:51The damp was, er, problems with the guttering
0:52:51 > 0:52:53and the rendering was blown a bit,
0:52:53 > 0:52:55so we hacked that off, tanked the walls and re-rendered.
0:52:55 > 0:52:58It wasn't much of a problem, didn't add any extra cost on.
0:52:58 > 0:53:01Just took a couple of days.
0:53:01 > 0:53:06Nathan is pretty relaxed - just as he was about that wonkiness.
0:53:06 > 0:53:09We've knocked the neighbours, they're all like it as well,
0:53:09 > 0:53:13so had a look down the street, it just seems to be movement over time.
0:53:14 > 0:53:18Let's just call it a "quirky special feature", then.
0:53:18 > 0:53:26# What a kooky little paradise What a kooky little paradise
0:53:26 > 0:53:30# Never was an island half as nice
0:53:30 > 0:53:33# As my kooky little paradise... #
0:53:33 > 0:53:36The bathroom has been repainted and regrouted.
0:53:36 > 0:53:39They decided to keep their original tiles.
0:53:39 > 0:53:42So what did they do to brighten up the kitchen?
0:53:42 > 0:53:45In the kitchen, we've changed the worktops,
0:53:45 > 0:53:48wrapped the doors in a vinyl wrap,
0:53:48 > 0:53:51makes it look nice and white and new.
0:53:51 > 0:53:54Um, we've kept the original oven, hob and extractor fan,
0:53:54 > 0:53:58with the sink and the tap - it all didn't need replacing.
0:53:58 > 0:53:59It looks much fresher and brighter.
0:53:59 > 0:54:02Hopefully the new tenants will be pleased with it.
0:54:02 > 0:54:05I think this is a very clever choice. OK, so disguising old units
0:54:05 > 0:54:09with vinyl wrap is no substitute for a brand-new designer kitchen,
0:54:09 > 0:54:15but this is a good example of knowing your market.
0:54:15 > 0:54:19Nathan is intent on renting the property and those cosmetic changes
0:54:19 > 0:54:23do make a bit of difference without eating into the budget too much.
0:54:23 > 0:54:27Speaking of budgets, Nathan was looking to spend
0:54:27 > 0:54:30between 4,000 and £5,000. How did he get on?
0:54:31 > 0:54:34We've come in under 4,000. Just, though.
0:54:34 > 0:54:36I think about 3,800 all being told.
0:54:36 > 0:54:39So it's a bit under budget, it's great.
0:54:39 > 0:54:41The timescale's gone great.
0:54:41 > 0:54:43We've spent 24 days on the property in total.
0:54:43 > 0:54:47There's been a few weekends, a few late nights,
0:54:47 > 0:54:50but, all in all, on target.
0:54:52 > 0:54:56Under budget and finishing within his four-to-six-week timescale,
0:54:56 > 0:54:58Nathan appears to have done well.
0:54:58 > 0:55:01Having paid just £27,000 for the property at auction
0:55:01 > 0:55:06and spent £3,800 on the development, things are looking positive.
0:55:06 > 0:55:10But let's see what two local property experts think of his work
0:55:10 > 0:55:12before we crack open the champagne.
0:55:12 > 0:55:15They've made some very good changes.
0:55:15 > 0:55:19They've obviously improved the kitchen and improved the bathroom.
0:55:19 > 0:55:23Um, put new flooring in the living room
0:55:23 > 0:55:25and new carpets upstairs.
0:55:25 > 0:55:28On the whole, they've done a good job.
0:55:28 > 0:55:31The standard of the finish isn't the best I've seen,
0:55:31 > 0:55:37um, the painting, um, could do with improving,
0:55:37 > 0:55:42um, but the general standard is OK.
0:55:42 > 0:55:45I think the good things about this property are the parking,
0:55:45 > 0:55:47the new boiler.
0:55:47 > 0:55:50It does smell new, because of the paintwork and everything,
0:55:50 > 0:55:52new floorings in some areas,
0:55:52 > 0:55:54but it is definitely down at the rental standard.
0:55:54 > 0:55:56It's definitely not a sale standard.
0:55:56 > 0:55:58If you weren't going to replace the kitchen,
0:55:58 > 0:56:00I would have redone the doors,
0:56:00 > 0:56:02instead of putting the veneer over them, or the lacquer.
0:56:02 > 0:56:06While Nathan is aware that there are some finishing touches
0:56:06 > 0:56:07to be made to this house,
0:56:07 > 0:56:09he was keen to stay on budget.
0:56:09 > 0:56:12So, will the cheaper finish affect the values?
0:56:12 > 0:56:15So far, the father-son team have spent £30,800.
0:56:16 > 0:56:19So, what could it sell for?
0:56:19 > 0:56:23I would put this property on the market for £59,950,
0:56:23 > 0:56:28with a view to achieving between 50,000 and £55,000.
0:56:28 > 0:56:31I think if this property was put on the market at the moment,
0:56:31 > 0:56:33it would achieve 60,000 to £65,000.
0:56:34 > 0:56:37If Nathan and his dad were able to achieve that top valuation
0:56:37 > 0:56:40of £65,000, it would give a pre-tax profit
0:56:40 > 0:56:44of 34,200.
0:56:44 > 0:56:48But Nathan was looking to add this to a portfolio of properties,
0:56:48 > 0:56:51so what rental value could he expect?
0:56:52 > 0:56:57I would look to rent this property out for £375 per calendar month.
0:56:57 > 0:57:02I think this property could rent for between 350 and £375
0:57:02 > 0:57:03per calendar month.
0:57:03 > 0:57:06If it was done to a slightly better standard,
0:57:06 > 0:57:08definitely £400 per calendar month.
0:57:08 > 0:57:10Yep, that's brilliant, that's exactly what I was expecting.
0:57:10 > 0:57:13Be great to definitely rent the property out.
0:57:13 > 0:57:16£375 per calendar month
0:57:16 > 0:57:19would give Nathan a whopping yield of around 14%.
0:57:19 > 0:57:22No wonder he's pleased.
0:57:22 > 0:57:24A good lesson for all developers -
0:57:24 > 0:57:26sometimes, pouring money and time
0:57:26 > 0:57:29into the perfect finish is not the solution.
0:57:29 > 0:57:32He had a plan, he bought cheap, got it turned round quickly
0:57:32 > 0:57:35and didn't spend too much.
0:57:35 > 0:57:36So, what now?
0:57:36 > 0:57:39More property or more ice-cream?
0:57:42 > 0:57:45Property compares very differently to the ice-cream,
0:57:45 > 0:57:50but, er, definitely enjoy property more and we'll continue on that.
0:57:52 > 0:57:54So that's what happened to our buyers
0:57:54 > 0:57:56featured on the programme today,
0:57:56 > 0:57:59but there are as many stories as there are properties.
0:57:59 > 0:58:02Yes, so join us next time for more tales from the auction rooms
0:58:02 > 0:58:03here on Homes Under The Hammer.
0:58:03 > 0:58:05- Goodbye.- Goodbye.