Episode 59

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0:00:02 > 0:00:03Hello, and welcome to the programme.

0:00:03 > 0:00:06With the property market changing all the time,

0:00:06 > 0:00:09this could be a really interesting time to invest in property.

0:00:09 > 0:00:13But how do you make sure that you don't get priced out of the market?

0:00:13 > 0:00:15One way you can buy at a really good price

0:00:15 > 0:00:17is to head to your local auction.

0:00:43 > 0:00:45Buying under the hammer can be a really great way

0:00:45 > 0:00:47to get into the property market.

0:00:47 > 0:00:50Yes, lots of us are heading to auction houses all around the UK.

0:00:50 > 0:00:54So let's see what properties were bagged on today's show.

0:00:55 > 0:00:58It's a day of ambitious plans on Homes Under The Hammer.

0:00:58 > 0:01:01In Watford, time is of the essence.

0:01:01 > 0:01:04Ten weeks? Is that ten weeks and that's it?

0:01:05 > 0:01:07In Axminster, there's plenty of space,

0:01:07 > 0:01:10but not enough for an ambitious architect.

0:01:10 > 0:01:13- And maybe build a two-bed on the side? In the time you have?- Yes.

0:01:15 > 0:01:19And in Ilkeston, a long-term goal has a magic number -

0:01:19 > 0:01:21and it's not three.

0:01:21 > 0:01:25- My plan is to get 23 properties.- 23?

0:01:26 > 0:01:28All these properties were bought at auction.

0:01:28 > 0:01:31We'll find out who bought them and how much they paid

0:01:31 > 0:01:34when these homes went under the hammer.

0:01:34 > 0:01:35Sold.

0:01:38 > 0:01:39Welcome to Watford,

0:01:39 > 0:01:41with plenty of shops and amenities,

0:01:41 > 0:01:43and soon, you'll have to mind the gap.

0:01:43 > 0:01:45Not the Watford Gap,

0:01:45 > 0:01:47but the gap at two new London Tube stations

0:01:47 > 0:01:49opening in 2016.

0:01:51 > 0:01:54You don't have to wait for the new Tube station to open

0:01:54 > 0:01:57to have great transport links with this property.

0:01:57 > 0:01:59Just a ten-minute walk that way

0:01:59 > 0:02:02and you've got Tube, train and bus stops.

0:02:02 > 0:02:05This is a two-bedroom mid-terraced house

0:02:05 > 0:02:08and it had a guide price of £180,000-plus.

0:02:13 > 0:02:16Oh, bit of a blast from the past walking in here.

0:02:16 > 0:02:19Straightaway, you can see how you can upgrade this,

0:02:19 > 0:02:23and it looks like it hasn't been decorated in many, many years.

0:02:23 > 0:02:26First things first, I can smell slight damp,

0:02:26 > 0:02:28or is it a mustiness?

0:02:28 > 0:02:32I'm not sure how long this house has been locked up, but look,

0:02:32 > 0:02:35you can see down here the meters... These will need to be moved.

0:02:35 > 0:02:37It looks really unsightly there.

0:02:37 > 0:02:39Good news here, we do have radiators,

0:02:39 > 0:02:44so gas central heating is here. Not quite sure about the fake brickwork.

0:02:44 > 0:02:48Look, you could do something to modernise that there.

0:02:48 > 0:02:52Carpets need changing, but a really good space.

0:02:52 > 0:02:55You can imagine that this will look like once you have decorated it.

0:02:55 > 0:02:57Lovely window as well, with loads of light coming in.

0:02:57 > 0:03:02Second reception room. Again, a lot you could do to improve this.

0:03:02 > 0:03:06Great area, nice big window, but again, I can smell the damp in here,

0:03:06 > 0:03:08so I would certainly have an inspection

0:03:08 > 0:03:11as to see where that smell is coming from.

0:03:11 > 0:03:14And then through here, as I expected, the kitchen.

0:03:14 > 0:03:16I think it looks a bit tired,

0:03:16 > 0:03:19but the thing that makes me think positive here

0:03:19 > 0:03:21is that the bathroom is not at the back

0:03:21 > 0:03:24where you would expect it to be in a property like this.

0:03:24 > 0:03:29That means it must be upstairs, so that's positive point number one.

0:03:29 > 0:03:30Positive point number two,

0:03:30 > 0:03:33that means there's room here for a utility.

0:03:33 > 0:03:37Better still, to extend the kitchen, and this door could be replaced

0:03:37 > 0:03:39by a nice set of French windows

0:03:39 > 0:03:42that lead out to the very neat garden space.

0:03:42 > 0:03:45Positive point number three.

0:03:45 > 0:03:47So, upstairs - the bedrooms.

0:03:47 > 0:03:50Now, excitingly, this is a little bit bigger than I'm used to,

0:03:50 > 0:03:53and that's because the downstairs alley...

0:03:53 > 0:03:57you've got this slight overhang, so it's a bit of cheeky space

0:03:57 > 0:03:59that you've managed to get in a property like this,

0:03:59 > 0:04:01which is great news.

0:04:01 > 0:04:05And through here...a nice big bathroom. That is a luxury.

0:04:05 > 0:04:08You may even at some stage want to turn that into a bedroom.

0:04:08 > 0:04:12But how are we going to get independent access to both the rooms

0:04:12 > 0:04:14to use the bathroom? Well, that's easy.

0:04:14 > 0:04:17I have seen this done so many times before, and it works a treat.

0:04:17 > 0:04:21All you have to do - flip the stairs around so you come up here,

0:04:21 > 0:04:23you can then have the bedroom here

0:04:23 > 0:04:26and walk along here into a little corridor into the bathroom,

0:04:26 > 0:04:29and this bedroom here also leads straight into the bathroom

0:04:29 > 0:04:30via a corridor.

0:04:30 > 0:04:35And I think it is definitely worth doing with a property like this.

0:04:35 > 0:04:38Let's get the opinion of a local estate agent.

0:04:38 > 0:04:40Being local, he will know these properties well

0:04:40 > 0:04:44and be aware of their strengths and weaknesses.

0:04:44 > 0:04:46Parking is quite difficult round here.

0:04:46 > 0:04:48The property was built in the early 1900s,

0:04:48 > 0:04:51which they haven't got any parking facilities,

0:04:51 > 0:04:54so it is difficult to park sometimes.

0:04:54 > 0:04:56I would look to change this staircase round,

0:04:56 > 0:05:01so when you go upstairs you can make a corridor leading to the bathroom,

0:05:01 > 0:05:04or you could change that bathroom to a bedroom

0:05:04 > 0:05:06and look to put a bathroom to the front

0:05:06 > 0:05:07because, the size of the bedroom,

0:05:07 > 0:05:10you could cut that into two and make a bathroom as well.

0:05:10 > 0:05:13So you could get three bedrooms and a bathroom off the landing.

0:05:13 > 0:05:15See? Great minds, etc.

0:05:15 > 0:05:19Well, assuming it's refurbished as just a two-bedroomed house,

0:05:19 > 0:05:21how much would it be worth?

0:05:21 > 0:05:25My guess is much more than the £180,000 guide price.

0:05:25 > 0:05:27Once the property has been refurbished,

0:05:27 > 0:05:31I would expect a sale value of around £300,000,

0:05:31 > 0:05:36or, if you're looking to rent it, about £1,200 per calendar month.

0:05:36 > 0:05:39And is it worth the cost of making it three bedrooms?

0:05:39 > 0:05:42If the property was turned into a three-bedroomed house,

0:05:42 > 0:05:45I would expect a sale value of £330,000.

0:05:47 > 0:05:49There's a lot going for this property -

0:05:49 > 0:05:53size, location, outside space...

0:05:53 > 0:05:56But there are also problems -

0:05:56 > 0:06:01parking, you've got old electrics, and first on my list,

0:06:01 > 0:06:04well, the configuration of that bathroom.

0:06:04 > 0:06:07So who wanted to flip this property around?

0:06:07 > 0:06:10Let's see what happened when it went under the hammer.

0:06:10 > 0:06:12Freehold two-floor terraced house, this one.

0:06:12 > 0:06:14As you see it in your catalogues.

0:06:16 > 0:06:20Start this at 200, shall I? I will, thank you. 200 I'm bid. 202?

0:06:20 > 0:06:22202. 204?

0:06:22 > 0:06:24204. 206?

0:06:24 > 0:06:27206 is here. 208?

0:06:27 > 0:06:28208. 210?

0:06:28 > 0:06:31Bids come from several areas of the floor

0:06:31 > 0:06:33of this packed auction room

0:06:33 > 0:06:37until we rejoin the bidding at 232,000.

0:06:37 > 0:06:41232, he was first before you. 233, yes?

0:06:41 > 0:06:44233. 234, either of you?

0:06:44 > 0:06:46It's now hit 234. 235?

0:06:47 > 0:06:49236?

0:06:49 > 0:06:50237?

0:06:52 > 0:06:53238?

0:06:55 > 0:06:56239?

0:06:57 > 0:07:02No? £238,000 on my left. You're all out on my right.

0:07:02 > 0:07:06Yours, in the white shirt, at 238,000 at the moment for the first...

0:07:08 > 0:07:13At... Where were we? Thank you, 239, I can see you. 240?

0:07:13 > 0:07:14241?

0:07:15 > 0:07:16242?

0:07:19 > 0:07:20243?

0:07:23 > 0:07:24Are you sure?

0:07:24 > 0:07:28£242,000 is here on my left. It goes for the first...

0:07:29 > 0:07:31For the second at 242...

0:07:32 > 0:07:38Third and final time. Yours, sir, at £242,000. Your bidder number is..?

0:07:38 > 0:07:40102.

0:07:40 > 0:07:42The successful bidder is Lee,

0:07:42 > 0:07:45who's a property investor and chartered surveyor.

0:07:45 > 0:07:47So I suppose if he and his investors

0:07:47 > 0:07:51can't maximise the potential of this property, no-one can.

0:07:52 > 0:07:56We met at the £242,000 purchase.

0:07:56 > 0:07:58- Lee, congratulations. - Thank you very much.

0:07:58 > 0:08:01So what I want to know is why did you want to buy this property

0:08:01 > 0:08:03and how much research did you do?

0:08:03 > 0:08:06I've known about the Watford area for quite a while,

0:08:06 > 0:08:09as I've lived within the wider area for a number of years

0:08:09 > 0:08:11and it's got a lot of growth potential.

0:08:11 > 0:08:13I thought the property was quite cheap

0:08:13 > 0:08:17and also I think the property has got a lot of value-enhancement potential.

0:08:17 > 0:08:19Is that what attracted you?

0:08:19 > 0:08:22I think the poor condition of the property attracted me -

0:08:22 > 0:08:24knowing that if it's in a poor condition,

0:08:24 > 0:08:27you should be able to improve it and the value should follow,

0:08:27 > 0:08:28if you're coming off quite a low base.

0:08:28 > 0:08:32How are you going to get the most and maximise this property?

0:08:32 > 0:08:34We're going to turn the staircase around.

0:08:34 > 0:08:37The bathroom upstairs will become a bedroom,

0:08:37 > 0:08:41and we will split the front bedroom at first-floor level

0:08:41 > 0:08:44into a bedroom with also a bathroom accessed from the hallway.

0:08:44 > 0:08:47The bathroom is unnecessarily big, it doesn't add anything to the value,

0:08:47 > 0:08:49particularly for a house of this type.

0:08:49 > 0:08:53So, if we can create three bedrooms with a family bathroom upstairs,

0:08:53 > 0:08:54and then the other critical thing

0:08:54 > 0:08:57is to ensure you have a cloakroom downstairs

0:08:57 > 0:08:59at ground-floor level for guests,

0:08:59 > 0:09:02which we can also do as a result of turning around the staircase.

0:09:02 > 0:09:05You've got lots of space downstairs as well, which is a huge bonus.

0:09:05 > 0:09:08I don't think it's worked particularly well in the kitchen.

0:09:08 > 0:09:10You've got that big area by the back door,

0:09:10 > 0:09:12which I would like to incorporate into the kitchen,

0:09:12 > 0:09:14or put some lovely big double doors there

0:09:14 > 0:09:16so you can see out to the garden.

0:09:16 > 0:09:20So the kitchen, we're going to enlarge and utilise all of that area

0:09:20 > 0:09:23and put the kitchen in that whole area.

0:09:23 > 0:09:28And the current back door we're going to move into the dining-room area,

0:09:28 > 0:09:30and that will allow us to get a return on the kitchen.

0:09:30 > 0:09:34One thing I don't want to do, and I particularly dislike,

0:09:34 > 0:09:36is in kitchens where you have a galley kitchen.

0:09:36 > 0:09:39So here we're going to have an L-shaped kitchen,

0:09:39 > 0:09:41and where the current door is we'll put a window,

0:09:41 > 0:09:44- which is where the sink will be. - But the only thing is -

0:09:44 > 0:09:46and I agree with you about galley kitchens -

0:09:46 > 0:09:48to have instant access from your kitchen

0:09:48 > 0:09:51directly into your garden is a really good thing.

0:09:51 > 0:09:54It is a good thing and it's important,

0:09:54 > 0:09:57however this is going to be a rental property

0:09:57 > 0:10:00and you've got to look at the practicalities

0:10:00 > 0:10:03and getting everything in whilst also creating a sense of space,

0:10:03 > 0:10:06and you will be able to enter the garden from the dining area,

0:10:06 > 0:10:07the principal reception room,

0:10:07 > 0:10:09so I don't really foresee it as a problem.

0:10:09 > 0:10:12I think, weighing it all up, that's probably the best solution.

0:10:14 > 0:10:17If Lee sounds like he knows what he's talking about,

0:10:17 > 0:10:18that's because he does.

0:10:18 > 0:10:22He's been investing in property ever since he was at university,

0:10:22 > 0:10:24when he bought his first one with a friend.

0:10:24 > 0:10:29I suspect he has everything covered, even that lack of parking.

0:10:29 > 0:10:31What about the negative sides of having bought this?

0:10:31 > 0:10:33The parking, as an example.

0:10:33 > 0:10:36The parking is an issue, but across the whole of London now

0:10:36 > 0:10:39there's parking issues, particularly for new developments.

0:10:39 > 0:10:41There's resident's permits outside,

0:10:41 > 0:10:44so the occupier of this can obtain a permit.

0:10:44 > 0:10:46In terms of if they've got friends over,

0:10:46 > 0:10:48well, that's living in Greater London.

0:10:48 > 0:10:50If you have a new-build property in London,

0:10:50 > 0:10:54you're lucky to even get a parking permit... Parking space.

0:10:54 > 0:10:56So this area is actually Hertfordshire.

0:10:56 > 0:10:59Interestingly, you're calling it Greater London. Why is that?

0:10:59 > 0:11:04Erm... I'm certainly not calling it a London address, definitely not.

0:11:04 > 0:11:08However, it is located within the M25,

0:11:08 > 0:11:11so it could be regarded as being within Greater London.

0:11:11 > 0:11:13It is on the London Underground, for example.

0:11:13 > 0:11:17- Excitingly, all the Tube links are coming out to here.- Exactly.

0:11:17 > 0:11:19So it's easy access into London.

0:11:19 > 0:11:21Exactly, and many people who live around here

0:11:21 > 0:11:25will work in central London, but it is a Hertfordshire address.

0:11:25 > 0:11:27Tell me what you're going to be doing with the garden.

0:11:27 > 0:11:30The garden, we'll just put some paving slabs down

0:11:30 > 0:11:33and tidy it up, just so it's ready.

0:11:33 > 0:11:37- Any chance you might do an extension?- None.- Definitely not?

0:11:37 > 0:11:40- Definitely not.- Do you feel you don't need to here?

0:11:40 > 0:11:42Don't get me wrong, I'd love to,

0:11:42 > 0:11:45but I don't feel spending an extra £10,000-£20,000

0:11:45 > 0:11:47you'll get back on the end value.

0:11:47 > 0:11:49So what's your spend? How much budget have you got?

0:11:49 > 0:11:52The budget will be between £40,000 and £50,000.

0:11:52 > 0:11:55OK, do you have any contingency in case you go over?

0:11:55 > 0:11:57There's a couple of thousand in there as a contingency.

0:11:57 > 0:12:00How long is it going to take you before the property is shipshape?

0:12:00 > 0:12:02- Ten weeks.- Ten weeks?!

0:12:02 > 0:12:05Is that ten weeks and that's it - no quivering, wavering...?

0:12:05 > 0:12:07- Ten weeks, easy.- Really?

0:12:07 > 0:12:10- Yes.- So you're certainly not going to be going over that?- No.

0:12:10 > 0:12:13- And your budget is set at that level?- Absolutely.

0:12:13 > 0:12:16- Do you feel confident with this?- Very much so.

0:12:16 > 0:12:17Why do you feel so confident?

0:12:17 > 0:12:20Because I've done it before, I know what things cost,

0:12:20 > 0:12:22I've got a good team who I work with

0:12:22 > 0:12:25and I'm very comfortable with the budget.

0:12:25 > 0:12:28One thing I would say is if the budget does increase,

0:12:28 > 0:12:30or if we do decide to spend extra money,

0:12:30 > 0:12:33it will be because we feel that the property is improving as a result.

0:12:33 > 0:12:36It won't be necessarily because of unforeseen issues.

0:12:36 > 0:12:39It's been lovely meeting you today and I'm really excited to see

0:12:39 > 0:12:41whether you keep to that ten-week timescale. Good luck.

0:12:41 > 0:12:43Absolutely. Many thanks.

0:12:47 > 0:12:49Lee certainly knows what he's doing.

0:12:49 > 0:12:51He's so efficient, he's organised,

0:12:51 > 0:12:55and he's got very definite ideas on his budget and timescale.

0:12:55 > 0:12:58But I'm intrigued to see how he works that space upstairs.

0:12:58 > 0:13:02Can he really spin it around in just ten weeks?

0:13:02 > 0:13:04Join me later in the show and you can find out.

0:13:10 > 0:13:13Well, I'm off to the southwest part of the UK

0:13:13 > 0:13:16that is synonymous with the manufacture

0:13:16 > 0:13:18of an item found in most homes.

0:13:18 > 0:13:22But where exactly am I? Well, it's high time I told you.

0:13:23 > 0:13:27I'm in Devon, in the market town of Axminster -

0:13:27 > 0:13:29and very pretty it is, too.

0:13:29 > 0:13:33But I'm not here to buy a rug or a carpet.

0:13:33 > 0:13:36Nope, I'm in search of property bargains.

0:13:36 > 0:13:38Locally, there's quite a choice,

0:13:38 > 0:13:41from character buildings to modern family homes.

0:13:41 > 0:13:43But as ever, when looking for good investment,

0:13:43 > 0:13:47you have to tread carefully. So what have we got?

0:13:47 > 0:13:50Well, it's an ex-local-authority property, which as you know,

0:13:50 > 0:13:53I think is really good news - they're really solidly built.

0:13:53 > 0:13:57This is it. It's three-bedroom, end-of-terrace,

0:13:57 > 0:14:00at a guide price of £90,000-£110,000.

0:14:00 > 0:14:01Let's take a look.

0:14:07 > 0:14:10The thing about ex-local-authority houses

0:14:10 > 0:14:12is they're generally very well built,

0:14:12 > 0:14:15the rooms are a good size...

0:14:15 > 0:14:17Well, this is certainly going true to form.

0:14:17 > 0:14:21This room here, a double-aspect living room, really nice.

0:14:21 > 0:14:25Bit of a dated old fireplace, that's not a big problem. Great.

0:14:25 > 0:14:27Lots of light, lots of space...

0:14:27 > 0:14:30The other thing which they generally have is lots of storage -

0:14:30 > 0:14:32and sure enough, lots of storage.

0:14:32 > 0:14:33Come through here...

0:14:33 > 0:14:36I love this kind of layout of a house, that you can actually

0:14:36 > 0:14:37almost do a circuit of the ground floor,

0:14:37 > 0:14:41because you're coming into the kitchen here. Really nice.

0:14:41 > 0:14:44OK, don't look at that. It will be fantastic when you've done it up.

0:14:44 > 0:14:45You've got this really nice space.

0:14:45 > 0:14:48You got the kitchen area there, a dining area there...

0:14:48 > 0:14:50Again, it's dual-aspect.

0:14:50 > 0:14:52Lots of utility areas going out that way

0:14:52 > 0:14:55and then back to where we started.

0:14:55 > 0:14:57How charming.

0:15:01 > 0:15:05Up here, the perfectly sensible layout continues.

0:15:05 > 0:15:06Nice landing area.

0:15:06 > 0:15:08Bathroom there... Well, you know,

0:15:08 > 0:15:10a bit like the rest of the house -

0:15:10 > 0:15:13it does need some tender loving care and updating,

0:15:13 > 0:15:15but at least it is up here and it's a good size.

0:15:15 > 0:15:17As are the bedrooms.

0:15:17 > 0:15:20There's three of those - one there, another one there.

0:15:20 > 0:15:22And the thing I love about the house

0:15:22 > 0:15:26is it does have this feeling of light and airiness, which is fab.

0:15:26 > 0:15:28In the smallest of the bedrooms, though...

0:15:30 > 0:15:32Great wallpaper!

0:15:33 > 0:15:37Yes, there's a slight feeling that time has passed this house by.

0:15:37 > 0:15:40Not a big problem and, actually, wallpaper aside,

0:15:40 > 0:15:41this is looking rather good.

0:15:44 > 0:15:48Well, another thing which ex-local-authority houses often have

0:15:48 > 0:15:53is half-decent-sized gardens, and that's certainly the case here.

0:15:53 > 0:15:55It needs a good few hours with a strimmer,

0:15:55 > 0:15:57but apart from that, it's brill.

0:15:57 > 0:15:59A lot of this area is ex-local authority

0:15:59 > 0:16:03and, in this case, that does bring with it a few caveats,

0:16:03 > 0:16:06because in order to try and keep some of that housing

0:16:06 > 0:16:08in the hands of locals,

0:16:08 > 0:16:12this particular local authority has said that whoever buys it

0:16:12 > 0:16:16has to have been a resident of Devon for the past three years.

0:16:16 > 0:16:20So that's a really important thing to know before you bid.

0:16:22 > 0:16:24If you ever did need reminding,

0:16:24 > 0:16:28you must check the legal pack before you buy at auction,

0:16:28 > 0:16:31because you just never know what you might find.

0:16:31 > 0:16:33Restrictions like this one

0:16:33 > 0:16:36are designed to ensure that local people

0:16:36 > 0:16:38can have access to affordable housing

0:16:38 > 0:16:40and to protect community cohesion.

0:16:40 > 0:16:43If you meet the Devonshire criteria,

0:16:43 > 0:16:45this property has a lot going for it,

0:16:45 > 0:16:48because you're not just getting a good-sized garden,

0:16:48 > 0:16:52there is a garage and off-street parking with access at the rear.

0:16:52 > 0:16:57And I think this side extension is really underutilised.

0:16:57 > 0:16:59It's got electrics and plumbing already in place

0:16:59 > 0:17:01and could make for a fantastic kitchen.

0:17:01 > 0:17:04Or perhaps move the bathroom downstairs

0:17:04 > 0:17:07and create an extra fourth bedroom upstairs.

0:17:07 > 0:17:10Or even better, make it a two-storey extension.

0:17:14 > 0:17:17But what can the auctioneer who sold the house tell us about it?

0:17:20 > 0:17:23The beauty of the house is that it flows

0:17:23 > 0:17:27and works however you want to lay it out.

0:17:27 > 0:17:30You've almost got a farmhousey-type kitchen as you come in,

0:17:30 > 0:17:31you've got a nice sitting room here,

0:17:31 > 0:17:35there's plenty of room for sofas and chairs and a PC and so on,

0:17:35 > 0:17:37and you've got good bedrooms upstairs.

0:17:37 > 0:17:40Good garden, off-road parking, handy for the town

0:17:40 > 0:17:43but tucked away in private... It's got everything going for it.

0:17:43 > 0:17:46And the clause stays forever with this house,

0:17:46 > 0:17:48which means if you want to sell it on,

0:17:48 > 0:17:50you could only sell it to someone

0:17:50 > 0:17:54who has lived or worked in the area for three years.

0:17:54 > 0:17:58But given that, what does the agent think it would make once modernised?

0:17:59 > 0:18:04I'd see it on the market at about £165,000.

0:18:04 > 0:18:09The rental demand for the house just made the very best of what's here

0:18:09 > 0:18:12would be in the region of £700 per calendar month.

0:18:12 > 0:18:15What about if that side extension was refurbished

0:18:15 > 0:18:20and the house maybe configured to make it a four-bed property?

0:18:20 > 0:18:24If one simply extended this existing three-bedroomed house

0:18:24 > 0:18:27and turned it into a four-bedroomed house,

0:18:27 > 0:18:31you'd be looking at a value in the region of £185,000...

0:18:33 > 0:18:37..and a rental value of maybe as much as £800 per calendar month.

0:18:38 > 0:18:40So, encouraging numbers.

0:18:46 > 0:18:49Well, pretty much as you would have hoped for -

0:18:49 > 0:18:51a solid house, a nice location,

0:18:51 > 0:18:55and a great family home with not that much effort.

0:18:55 > 0:18:57Let's see who bought it when it went under the hammer.

0:19:01 > 0:19:06We're in East Devon, just about one of the sweetest houses I've been to.

0:19:06 > 0:19:11It's a good, honest, straightforward house. Big garden, handy for town...

0:19:11 > 0:19:14So who's going to say 100 for us? Nice and simply, 100,000.

0:19:14 > 0:19:18Scott has. 100 we've got. At 100.

0:19:18 > 0:19:20102, 104...

0:19:20 > 0:19:24It quickly became clear that this was a popular lot.

0:19:25 > 0:19:28We rejoin the bidding at £120,000.

0:19:29 > 0:19:32120. 121, do I...? 121 I've got.

0:19:32 > 0:19:35The lady. 121.

0:19:35 > 0:19:37122...

0:19:37 > 0:19:39122...

0:19:39 > 0:19:41122. What do you want to tell me?

0:19:41 > 0:19:44123, OK.

0:19:44 > 0:19:46124. 125, you heard the call.

0:19:46 > 0:19:48125.

0:19:48 > 0:19:52126, 126,500.

0:19:52 > 0:19:54127, do I...?

0:19:54 > 0:19:58127. 127,500. 127,500.

0:19:58 > 0:20:01I'll take 128. He does, 128.

0:20:01 > 0:20:03At 128 I've got, stood.

0:20:03 > 0:20:04At 128. First time.

0:20:06 > 0:20:08At 128, second time.

0:20:08 > 0:20:10128, third and last time.

0:20:10 > 0:20:12The property is sold.

0:20:12 > 0:20:13Sir, yours. Well done.

0:20:15 > 0:20:18And so the hammer fell at £128,000

0:20:18 > 0:20:22and the new owners of this Devon delight

0:20:22 > 0:20:25are bidder Craig and his partner, Cathy,

0:20:25 > 0:20:28who unfortunately couldn't come along on the day.

0:20:28 > 0:20:30Cathy has lived in Devon for nearly six years

0:20:30 > 0:20:32and Craig has just finished

0:20:32 > 0:20:35renovating a property for her in Ivybridge,

0:20:35 > 0:20:39so that resident clause in the legal pack won't bother them.

0:20:40 > 0:20:43- Craig, good to meet you.- Good morning.- Congratulations.- Thank you.

0:20:43 > 0:20:45Tell me why you wanted to buy this place.

0:20:45 > 0:20:50Er, situation mainly. Axminster, close to the town centre.

0:20:50 > 0:20:53East Devon, good postcode.

0:20:53 > 0:20:58- And it's a good solid house for a new project.- Project?- Yes.

0:20:58 > 0:20:59Tell me about that.

0:20:59 > 0:21:03Well, hopefully... It's only minor changes we want to do.

0:21:03 > 0:21:06There'll be... The bathroom upstairs will be reorganised.

0:21:06 > 0:21:09The chimney breast is going to come out

0:21:09 > 0:21:13all the way up through the bedrooms to square the bedrooms off upstairs.

0:21:13 > 0:21:16Then the kitchen's going to flip over onto this side

0:21:16 > 0:21:18- and this will be the dining room area there.- Right.

0:21:18 > 0:21:20We'll probably brick one of the doorways, this doorway up,

0:21:20 > 0:21:24round the back, to stop the merry-go-round from the lounge.

0:21:24 > 0:21:26And then maybe build a two-bed on the side.

0:21:26 > 0:21:30- And maybe build a two-bed on the side?!- Yes.- Right.

0:21:30 > 0:21:32- An entire new house?- Yes.

0:21:32 > 0:21:34They'll be tagged onto the side of this,

0:21:34 > 0:21:38so this will become the mid-terrace and then there'll be one on the side.

0:21:38 > 0:21:41Crikey! I didn't see that coming.

0:21:41 > 0:21:44Not just a full refurbishment or re-vamped extension,

0:21:44 > 0:21:47but a complete new-build of a two-bed house,

0:21:47 > 0:21:50provided, of course, the plan is agreed.

0:21:50 > 0:21:52But with an existing structure in place,

0:21:52 > 0:21:55albeit in the form of a single-storey extension,

0:21:55 > 0:21:57and potential road access and parking,

0:21:57 > 0:22:00Craig has a reasonable chance of success.

0:22:00 > 0:22:02Talk about maximising your investment!

0:22:10 > 0:22:12- Is this something you do?- Er, yes.

0:22:12 > 0:22:15- I've been trained in interior architecture and design.- Oh.

0:22:15 > 0:22:18- So I know a little bit about it.- Sure.

0:22:18 > 0:22:22And I also come from the construction industry as well, so...

0:22:22 > 0:22:24- hands-on as well.- That sounds like an ideal combination.

0:22:24 > 0:22:28Are you doing this as a business? Is this your main job now, then?

0:22:28 > 0:22:31Semi-main job. I still do other work as well.

0:22:31 > 0:22:34Design work and that, for other people, and then this fills in.

0:22:34 > 0:22:37Right. And what's the timescale then, do you think?

0:22:37 > 0:22:42- Six to 12 months, I presume.- OK. So, let's talk through budgets then.

0:22:42 > 0:22:45- Just doing up the house as it stands...?- Yes.

0:22:45 > 0:22:49- I think it should be about 10,000 to 12,000.- OK.- And...

0:22:49 > 0:22:51Not really worked out the house yet,

0:22:51 > 0:22:55- but something in the region of 70, I presume.- Right.

0:22:55 > 0:22:58And do you have any idea of the value when it was finished,

0:22:58 > 0:23:00if it was a £70,000 build?

0:23:00 > 0:23:05Well, these properties are going on the market for 180,000.

0:23:05 > 0:23:07- 180?- Yes.

0:23:07 > 0:23:09- Right.- When they're spruced up.- Right.

0:23:09 > 0:23:11So it'll be a little bit less,

0:23:11 > 0:23:13because it will become a mid-terrace, I presume,

0:23:13 > 0:23:16and then it'll be low hundreds, I presume,

0:23:16 > 0:23:18for that one there, next door.

0:23:18 > 0:23:21Wow. So potentially loads of money in this.

0:23:21 > 0:23:24Yes. Hopefully! THEY LAUGH

0:23:24 > 0:23:27- Well, congratulations.- Thank you. - Sounds a very interesting project.

0:23:27 > 0:23:30- Hopefully so. Should keep me busy for a while.- Yeah. Good luck with it.

0:23:30 > 0:23:31Thank you.

0:23:33 > 0:23:37Well, Craig coming up with an idea that I hadn't even considered.

0:23:37 > 0:23:41Literally knocking that down and building another house in its place.

0:23:41 > 0:23:44Suddenly, this has gone from potential profit

0:23:44 > 0:23:46to potential big profit,

0:23:46 > 0:23:48but it all relies on that all-important planning permission.

0:23:48 > 0:23:51Will he get it? You can find out later in the show.

0:23:53 > 0:23:55Coming up, I'm reshaping rooms in Ilkeston.

0:23:55 > 0:23:59And suddenly, you've got a really nice, still three-bedroomed

0:23:59 > 0:24:01but bathroom-upstairs property.

0:24:01 > 0:24:03Result!

0:24:03 > 0:24:07And Craig needs all his skills and patience in Axminster.

0:24:07 > 0:24:09We originally tried for a three-bedroom house

0:24:09 > 0:24:12but, unfortunately, they were not very keen on that.

0:24:18 > 0:24:19We're back now to the home

0:24:19 > 0:24:23of Elton John's favourite football team, Watford.

0:24:23 > 0:24:26This two-bedroom terraced house showed real promise,

0:24:26 > 0:24:30but it had been left more than a little sad and neglected,

0:24:30 > 0:24:32with dreadful, dated decor,

0:24:32 > 0:24:35and a frankly frightful first-floor layout.

0:24:35 > 0:24:37OK, there's two bedrooms,

0:24:37 > 0:24:39but you'd have to walk through one of them

0:24:39 > 0:24:43to get to what is a massively oversized bathroom.

0:24:43 > 0:24:45Not a good use of space.

0:24:47 > 0:24:51# And I guess that's why they call it the blues

0:24:51 > 0:24:54# Time on my hands

0:24:54 > 0:24:57# Could be time spent with you

0:24:57 > 0:25:01# And I guess that's why they call it the blues... #

0:25:02 > 0:25:04But don't despair!

0:25:04 > 0:25:08Enter Lee, chartered surveyor, property developer,

0:25:08 > 0:25:10and all-round confident guy,

0:25:10 > 0:25:14who bought the property for £242,000 at auction,

0:25:14 > 0:25:16and was here to sort it all out.

0:25:17 > 0:25:20So how long is it going to take you before the property's shipshape?

0:25:20 > 0:25:23- Ten weeks.- Ten weeks?! Is that ten weeks and that's it?

0:25:23 > 0:25:27- No quivering, wavering - ten weeks to the dot?- Ten weeks, easy.

0:25:27 > 0:25:30- Ten weeks.- Really?- Yes.- Do you feel confident with this?- Very much so.

0:25:30 > 0:25:33- Why do you feel so confident? - Because I've done it before,

0:25:33 > 0:25:37I know what things cost, I've got a good team who I work with,

0:25:37 > 0:25:39and I'm very comfortable with the budget.

0:25:39 > 0:25:42MUSIC: It Never Will Go Wrong by Jona Lewie

0:25:42 > 0:25:44# It never will go wrong

0:25:46 > 0:25:47# It never will go wrong

0:25:49 > 0:25:52# It never will go wrong. #

0:25:52 > 0:25:54Lee knew what he wanted from the property,

0:25:54 > 0:25:59and with a budget of 40,000-50,000, he was confident he could get it.

0:26:01 > 0:26:03So exactly ten weeks later,

0:26:03 > 0:26:06we returned to see if Lee was correct to be so confident.

0:26:09 > 0:26:12MUSIC: Hate To Say I Told You So by The Hives

0:26:28 > 0:26:30Well, Lee said it would take ten weeks,

0:26:30 > 0:26:32and it's looking pretty good to me.

0:26:34 > 0:26:38# Hate to say I told you so All right. #

0:26:39 > 0:26:40Right, before we take a closer look -

0:26:40 > 0:26:44Lee, on your marks, get set, go!

0:26:44 > 0:26:48Er, well, where to start? We...have gutted the house.

0:26:48 > 0:26:51We have replastered throughout, we have re-plumbed throughout.

0:26:51 > 0:26:55We've put in a new bathroom upstairs and changed its location.

0:26:55 > 0:26:59We've re-wired. We have opened up the kitchen.

0:26:59 > 0:27:01We've put in a cloakroom at ground-floor level.

0:27:01 > 0:27:04We have repaired the bay roof above the front bay window.

0:27:04 > 0:27:07We had full timber and damp survey done.

0:27:07 > 0:27:12We have paved the garden and turfed the garden.

0:27:12 > 0:27:14We have redecorated throughout.

0:27:14 > 0:27:16Wow! I hope you got all that,

0:27:16 > 0:27:19because we will be asking questions later.

0:27:19 > 0:27:20Was that everything?

0:27:20 > 0:27:25And also turned the staircase around to facilitate the upstairs layout.

0:27:25 > 0:27:28Of course that wasn't everything!

0:27:28 > 0:27:29As you've probably gathered by now,

0:27:29 > 0:27:32Lee's pretty much overhauled the whole house.

0:27:32 > 0:27:37The lounge has been redecorated, as has the living area behind.

0:27:37 > 0:27:38Here, Lee's added glass doors

0:27:38 > 0:27:43that lead out onto the newly tided garden.

0:27:43 > 0:27:46MUSIC: Smooth Operator by Sade

0:27:46 > 0:27:50A new kitchen's been fitted, along with a ground-floor loo.

0:27:50 > 0:27:53That's not even the big change! Let's go upstairs.

0:27:55 > 0:27:57Through turning the staircase around,

0:27:57 > 0:28:01we have allowed ourselves to create a hallway upstairs.

0:28:01 > 0:28:03The middle bedroom has remained as it is.

0:28:03 > 0:28:07The rear room at the back previously used to be the bathroom,

0:28:07 > 0:28:09but it has now become the third bedroom.

0:28:09 > 0:28:12The front bedroom, which was previously very large,

0:28:12 > 0:28:16has now been divided slightly to create a small bathroom

0:28:16 > 0:28:18on the right-hand side, with a bedroom -

0:28:18 > 0:28:20still a good-sized double - on the left.

0:28:20 > 0:28:24We have also created an airing cupboard on the hallway

0:28:24 > 0:28:26to house the washing machine and dryer.

0:28:26 > 0:28:28# Smooth operator

0:28:30 > 0:28:33# Smooth operator... #

0:28:35 > 0:28:37Lee's making this look easy.

0:28:37 > 0:28:40By moving the stairs and creating a landing,

0:28:40 > 0:28:42Lee's not only solved the access problem,

0:28:42 > 0:28:44but added an extra bedroom as well.

0:28:44 > 0:28:46And he's done all this

0:28:46 > 0:28:48while sticking to his schedule of ten weeks.

0:28:48 > 0:28:50Impressive!

0:28:50 > 0:28:53But did he stick to his budget of 40,000-50,000?

0:28:56 > 0:28:59The budget has come within that.

0:28:59 > 0:29:03We're just a tad over 40,000.

0:29:04 > 0:29:07So, Lee spent £40,000 on the development,

0:29:07 > 0:29:12along with the £242,000 he bought the property for at auction.

0:29:12 > 0:29:15But will that add up to be a nice profit?

0:29:15 > 0:29:17We asked along two local estate agents

0:29:17 > 0:29:18to give us their opinion.

0:29:20 > 0:29:23Er, well, I thought the quality of the refurb was really good.

0:29:23 > 0:29:24Going upstairs, it's a rarity

0:29:24 > 0:29:27to have three double bedrooms in these style of houses.

0:29:27 > 0:29:28Because it's over the alleyway,

0:29:28 > 0:29:32you get a little bit more space upstairs, which is a real benefit.

0:29:32 > 0:29:34He's made massive changes to the property.

0:29:34 > 0:29:37Originally it was a two-bedroom, now he's turned it into a three-bedroom

0:29:37 > 0:29:40with a bathroom upstairs as well. They're good-sized rooms.

0:29:40 > 0:29:42It's all modern, all brand-new.

0:29:42 > 0:29:44And the rental market is definitely going to be

0:29:44 > 0:29:46looking for a property like this.

0:29:46 > 0:29:48Lee's hoping to rent the property,

0:29:48 > 0:29:52but having spent £282,000 in total on the development,

0:29:52 > 0:29:55what could he expect if he were to put it up for sale?

0:29:56 > 0:30:00I would probably quote between £335,000 to £345,000

0:30:00 > 0:30:03to achieve very close to the asking price.

0:30:03 > 0:30:07I would place this property on the market for £335,000.

0:30:08 > 0:30:14A sale of 335,000 would give a Lee a profit of £53,000,

0:30:14 > 0:30:17minus the usual taxes and expenses.

0:30:17 > 0:30:20Now, what about that all-important rental valuation?

0:30:22 > 0:30:24If you were looking to rent the property,

0:30:24 > 0:30:28I would imagine a figure of £1,400 per calendar month.

0:30:28 > 0:30:31I would ask £1,400 per calendar month.

0:30:31 > 0:30:34£1,400 per calendar month would give Lee a 5.9% yield.

0:30:36 > 0:30:37I think they're in the right region.

0:30:37 > 0:30:41I marketed the property myself for £1,350.

0:30:41 > 0:30:46I have agreed to let it to three young professional sharers at £1,350.

0:30:46 > 0:30:48Perhaps I could have got a little bit more,

0:30:48 > 0:30:52but I'm happy to have found the right tenant, so I'm pleased.

0:30:52 > 0:30:54Lee has turned out a very good-quality home

0:30:54 > 0:30:57and has had no problems getting good tenants.

0:30:57 > 0:31:00Right from the beginning, he was confident about this project.

0:31:00 > 0:31:03So, apart from being professional, having vision,

0:31:03 > 0:31:05and having very good ideas,

0:31:05 > 0:31:07what is the secret of his success?

0:31:07 > 0:31:11I think as long as you have...

0:31:11 > 0:31:13You're organised, you've researched your market

0:31:13 > 0:31:15and you're prepared, then give it a go.

0:31:20 > 0:31:23Welcome to Ilkeston in Derbyshire.

0:31:23 > 0:31:25In its heyday, this town was booming,

0:31:25 > 0:31:31with Stanton Ironworks employing, at its height, around 7,000 people.

0:31:31 > 0:31:34These days, Ilkeston opts for lighter industries

0:31:34 > 0:31:36and is a popular choice for commuters

0:31:36 > 0:31:38working in Derby and Nottingham.

0:31:40 > 0:31:43Well, in this pleasant, tree-lined street,

0:31:43 > 0:31:47not far from the town centre, is the property I'm here to see.

0:31:47 > 0:31:49Three-bedroomed mid-terrace.

0:31:49 > 0:31:52Guide price at £55,000.

0:31:52 > 0:31:54Let's take a look.

0:31:54 > 0:31:58# Pink It's the colour of passion. #

0:31:59 > 0:32:02I quite like the colour. Rather welcoming,

0:32:02 > 0:32:04as are some of the unusual features.

0:32:04 > 0:32:08But it seems that the previous tenant wasn't so welcoming.

0:32:08 > 0:32:12But already, just coming through the door, I'm tickled pink.

0:32:15 > 0:32:17Well, nice, bright entrance corridor - we like that -

0:32:17 > 0:32:20and a few original features, which is good news.

0:32:20 > 0:32:22Then into this room here.

0:32:22 > 0:32:25Erm, my guess is this was originally two rooms -

0:32:25 > 0:32:27a front sitting room and a rear sitting room,

0:32:27 > 0:32:29that have been knocked through into one.

0:32:29 > 0:32:31Whether or not you like that is down to personal choice.

0:32:31 > 0:32:34I actually quite like the feeling of openness it gives.

0:32:34 > 0:32:36Can't work out what that is.

0:32:36 > 0:32:39I mean, it throws a bit more light into this room.

0:32:39 > 0:32:41But for a start, it's wonky.

0:32:41 > 0:32:43So, not ideal, but you've got the nice bay window there,

0:32:43 > 0:32:46a nice fireplace too. Er...

0:32:47 > 0:32:52Not quite as nice, this one. But overall, it's a good-sized room.

0:32:52 > 0:32:56Heading back into the property - kitchen,

0:32:56 > 0:32:59in need of some work in here, as you can see.

0:32:59 > 0:33:01But that's not bad, that's actually good news.

0:33:01 > 0:33:04You can add value by doing a really nice kitchen in here.

0:33:04 > 0:33:06Something a bit more serious - through there,

0:33:06 > 0:33:09the only bathroom and loo in the property.

0:33:09 > 0:33:12Now, clearly moving that is going to be a bit of a priority.

0:33:12 > 0:33:16Where it's going to go, I don't know yet.

0:33:16 > 0:33:19# Yeah Put it where you want it

0:33:20 > 0:33:23# Put it where you want it

0:33:24 > 0:33:27# Put it where you want it. #

0:33:29 > 0:33:34So upstairs on my quest for somewhere to put that bathroom.

0:33:34 > 0:33:37What have we got? A back bedroom there. It's not a bad size.

0:33:37 > 0:33:41Middle bedroom here. Ooh, love the fireplace. Absolutely gorgeous.

0:33:41 > 0:33:43Quite interesting colour choice in that room!

0:33:43 > 0:33:46Down this little corridor, big front bedroom.

0:33:47 > 0:33:50So, right, what are we going to do? It's come to me.

0:33:50 > 0:33:53I reckon you've got enough space in this room,

0:33:53 > 0:33:57starting at this wall here, and in that bedroom

0:33:57 > 0:34:02a similar amount of space, to build a few sub-partition walls -

0:34:02 > 0:34:03a bathroom.

0:34:03 > 0:34:06Have your door here so you can get access to it,

0:34:06 > 0:34:08obviously off the landing.

0:34:08 > 0:34:10You wouldn't lose too much space for the two bedrooms.

0:34:10 > 0:34:12You've solved that problem downstairs.

0:34:12 > 0:34:15That can become your utility room and, suddenly, you've got

0:34:15 > 0:34:19a really nice, still three-bedroomed but bathroom-upstairs property.

0:34:19 > 0:34:21Result!

0:34:21 > 0:34:23# Oh, what a result

0:34:23 > 0:34:25# Top of the league

0:34:25 > 0:34:28# On a winning streak. #

0:34:28 > 0:34:31And if you thought there was plenty of space inside,

0:34:31 > 0:34:33there's plenty outside too.

0:34:33 > 0:34:35Well, with a property like this,

0:34:35 > 0:34:38you might not expect too much space out the back.

0:34:38 > 0:34:42Maybe just a little yard. But now we're here, really good news -

0:34:42 > 0:34:44a nice-sized garden.

0:34:44 > 0:34:48And it looks a bit dilapidated, but you've even got a shed.

0:34:48 > 0:34:50Brilliant.

0:34:50 > 0:34:52Well, I don't think the buyer of this place

0:34:52 > 0:34:56is going to "shed" any tears. There are so many positives here.

0:34:56 > 0:34:58Lots of features, like the fireplaces.

0:34:58 > 0:35:01There's plenty of "hooks" for this property.

0:35:02 > 0:35:05I think this has a lot of potential.

0:35:05 > 0:35:08Let's see what a local estate agent thinks of the property,

0:35:08 > 0:35:10which was guided at £55,000.

0:35:12 > 0:35:15Upon inspecting the property, I think it's a very good size.

0:35:15 > 0:35:18I was actually impressed, looking from the street

0:35:18 > 0:35:21to going inside - it's actually bigger than what I expected.

0:35:21 > 0:35:24The property just needs general modernisation throughout.

0:35:24 > 0:35:26It would benefit from having a new kitchen and bathroom.

0:35:26 > 0:35:30The size and layout are definitely good points about this property.

0:35:30 > 0:35:32It's great that you've got an entrance hall,

0:35:32 > 0:35:34rather than going straight into the lounge,

0:35:34 > 0:35:37and also you've got your two reception rooms.

0:35:37 > 0:35:39Once renovated, I think the property could be marketed

0:35:39 > 0:35:43anywhere within the region of £95,000-£100,000.

0:35:43 > 0:35:46If the property was modernised, I think you could rent it out

0:35:46 > 0:35:48for in the region of £450-£500 per calendar month.

0:35:50 > 0:35:52Well, a good opportunity, this one.

0:35:52 > 0:35:55For anything like the guide price, I think there's money to be made.

0:35:55 > 0:35:57Let's see who agreed when it went under the hammer.

0:35:57 > 0:35:59Three-bedroomed accommodation,

0:35:59 > 0:36:01with a bay window.

0:36:01 > 0:36:03It's passaged downstairs, gas centrally heated,

0:36:03 > 0:36:05mostly double-glazed.

0:36:05 > 0:36:11Start me on this one at 55. On the guide price. 55? 55? 52?

0:36:11 > 0:36:1352,000 for it?

0:36:13 > 0:36:17Who's got 50 to start me? It's worth all of that. 50,000 in two places.

0:36:17 > 0:36:2251. At 51. 52. 53.

0:36:22 > 0:36:2654. 55. 56.

0:36:26 > 0:36:3157. 58. 59. 60,000.

0:36:31 > 0:36:3661. 62. 500?

0:36:36 > 0:36:3962,500. 63,000.

0:36:39 > 0:36:4263, it's in the market. 63,500?

0:36:43 > 0:36:4963,500, got you. 63,500. 64. 64 is bid. 64 and a half.

0:36:50 > 0:36:53At 64 and a half, that side. 65 anywhere else?

0:36:55 > 0:36:59At £64,500, for the first time.

0:36:59 > 0:37:02For the second time. Third opportunity. All done with it?

0:37:03 > 0:37:06Sold at 64 and a half. 245.

0:37:07 > 0:37:12The successful bid of £64,500 was made by Nicola.

0:37:12 > 0:37:14We met her at the purchase

0:37:14 > 0:37:17to talk about her plans for this three-bed house.

0:37:21 > 0:37:24- Nicola, great to meet you.- Nice to meet you too.- Congratulations.

0:37:24 > 0:37:28- Thank you.- Tell me why you wanted to buy the house.

0:37:28 > 0:37:32- Erm, as a property investment. - OK.- To do up and to rent out.

0:37:32 > 0:37:34That's the plan.

0:37:34 > 0:37:37- Is this what you do?- It is, yeah.

0:37:37 > 0:37:40I gave up IT in September.

0:37:40 > 0:37:42I was in IT for 26 years.

0:37:43 > 0:37:46And I'm now doing property development.

0:37:46 > 0:37:49- How's it gone?- Er, OK.

0:37:49 > 0:37:53- A bit scary. I've got four properties.- Ooh!

0:37:53 > 0:37:57Another one going through. So two of them are renting out.

0:37:57 > 0:38:02This one is a big project, this is my biggest project.

0:38:02 > 0:38:06The last one I bought just needed decorating.

0:38:06 > 0:38:07So I've nearly finished that.

0:38:07 > 0:38:10Probably another week or so to do that one

0:38:10 > 0:38:14and then, with this one, it needs an awful lot doing to it.

0:38:14 > 0:38:16But, yeah, I'm looking forward to it.

0:38:16 > 0:38:1926 years in IT and then you wake up one morning and think,

0:38:19 > 0:38:23"I've had enough of this." Is that what happened, or what?

0:38:23 > 0:38:26Yeah. I'd been thinking about it for a couple of years.

0:38:26 > 0:38:29I had somebody who was in estate agency for a while,

0:38:29 > 0:38:33and she sort of started mentoring me so...

0:38:33 > 0:38:35- She's given me some great advice.- Oh, good!

0:38:35 > 0:38:38So haven't had to do all the due diligence, albeit I should,

0:38:38 > 0:38:41but she's been telling me which places to avoid

0:38:41 > 0:38:45and where to buy and how much to offer, so I've had that help.

0:38:45 > 0:38:47So, yeah, it's worked out well.

0:38:47 > 0:38:49What's the big attractions

0:38:49 > 0:38:53of becoming your own property developer?

0:38:53 > 0:38:55Erm, just my own boss, really.

0:38:55 > 0:39:00I can get up, I don't have to travel round the country selling IT.

0:39:00 > 0:39:02I can just get up when I want, I can go swimming.

0:39:02 > 0:39:05I've got quite a relaxing day, albeit with this property

0:39:05 > 0:39:10I've probably got a few months' hard work ahead of me.

0:39:10 > 0:39:13Yeah, it's being my own boss, really.

0:39:13 > 0:39:15# Oh The best job ever forever

0:39:15 > 0:39:18# We've got the best job ever. #

0:39:18 > 0:39:19I agree with Nicola.

0:39:19 > 0:39:22Property is a great job if you want to be your own boss.

0:39:22 > 0:39:26But it does come with a lot of hard work and some sleepless nights.

0:39:26 > 0:39:30Although she's just starting out, Nicola and her partner Andrew

0:39:30 > 0:39:34hope this will help them build a retirement fund.

0:39:34 > 0:39:36She already has a target in mind

0:39:36 > 0:39:39when it comes to the number of properties she wants to own.

0:39:39 > 0:39:42- My plan is to get 23 properties.- 23?- Yeah.

0:39:42 > 0:39:46I know it's a weird number, but that's what we've worked it out as.

0:39:46 > 0:39:50That we can both retire on 23 properties and be financially free.

0:39:50 > 0:39:55- Is that 23 rental properties? - Er, yeah, potentially.

0:39:55 > 0:39:58I mean, the plan is to do this up and rent it out,

0:39:58 > 0:40:02but it may mean that we do end up selling it. It just depends.

0:40:02 > 0:40:06But, yeah, that's the plan - to have 23 rental properties.

0:40:06 > 0:40:08This is Nicola's biggest project so far,

0:40:08 > 0:40:11and she knows she's got a damp-proof course to sort

0:40:11 > 0:40:14and joists in the dining room that need replacing.

0:40:14 > 0:40:16So what else does she plan to do?

0:40:17 > 0:40:21It needs all new carpets throughout, decorating.

0:40:21 > 0:40:25I'm potentially going to make these back into two rooms,

0:40:25 > 0:40:28the living room and dining room, and put the doorway through there.

0:40:28 > 0:40:31- Bathroom's going to go upstairs.- Oh, good.

0:40:31 > 0:40:34But I'm not going to take out one of the bedrooms.

0:40:34 > 0:40:39Potentially, it might go in the front room or in the side room.

0:40:39 > 0:40:42I'm just not sure yet. And then new kitchen and...

0:40:42 > 0:40:45yeah, it just needs decorating throughout, really.

0:40:45 > 0:40:47Some nice features, so...

0:40:47 > 0:40:48I like that sort of thing.

0:40:48 > 0:40:51I like the restoration side of things as well,

0:40:51 > 0:40:54so some of the features around here as well are nice.

0:40:54 > 0:40:57- What about outside?- Erm...

0:40:57 > 0:41:01I'm not sure about the colour of the building.

0:41:01 > 0:41:04But it's probably going to be too painful to take that off.

0:41:06 > 0:41:09So probably not too much, but... It's nice.

0:41:09 > 0:41:11Outside, the back, it's all enclosed.

0:41:11 > 0:41:15It's a nice garden, it just needs tidying up, really.

0:41:15 > 0:41:19So probably not too much outside, concentrating on the inside.

0:41:19 > 0:41:21- What's the budget?- OK.

0:41:21 > 0:41:25- Erm, I've got about 15,000 budgeted.- OK.

0:41:25 > 0:41:29So I'm hoping I've got a bit of contingency in there as well. So...

0:41:29 > 0:41:31And how much of the work are you going to do yourself?

0:41:31 > 0:41:34Erm, I'm going to do a lot of the...

0:41:34 > 0:41:38Well, I'm going to do all of the decorating. I can do tiling and...

0:41:38 > 0:41:41- Oh, great.- Lay floor, if I have to.

0:41:41 > 0:41:44Getting my hands dirty, it basically brings down the cost,

0:41:44 > 0:41:47and it's my job now so I'll be here every day, so...

0:41:47 > 0:41:50Until it's finished, which is hopefully going to be three months.

0:41:50 > 0:41:53And you've been going for six months now.

0:41:53 > 0:41:56What's the biggest thing you've learnt in that time?

0:41:56 > 0:42:00It's hard work. I've lost weight.

0:42:00 > 0:42:02I didn't have a lot of weight to lose,

0:42:02 > 0:42:06but I've definitely lost weight going up and down ladders and...

0:42:06 > 0:42:09things like that. So that's good. That's a really good thing.

0:42:09 > 0:42:11It's start-up costs and things like that

0:42:11 > 0:42:13that you've got to take into account.

0:42:13 > 0:42:16I do keep fretting about it working,

0:42:16 > 0:42:18and I keep getting reassured that it will work.

0:42:18 > 0:42:21- Well, listen, congratulations. Good luck with it.- Thank you.

0:42:21 > 0:42:25- We look forward to seeing how you get on.- Thank you very much.

0:42:25 > 0:42:31So, Nicola well on her way to her 23-property goal.

0:42:31 > 0:42:33Sounds like she knows exactly what she's going to do here,

0:42:33 > 0:42:36and I'm delighted she's going to move the bathroom upstairs,

0:42:36 > 0:42:40although it'll be interesting to see how it turns out.

0:42:40 > 0:42:42You can find out later in the show.

0:42:46 > 0:42:49So, Martin, we've seen how one of the properties has panned out

0:42:49 > 0:42:51on today's show. What about the others?

0:42:51 > 0:42:53Yes, let's find out how the other two purchasers

0:42:53 > 0:42:55got on with their properties.

0:42:55 > 0:42:58We return now to Axminster in Devon,

0:42:58 > 0:43:02where I was rather taken by this former local-authority house.

0:43:02 > 0:43:04However, it did come with a restriction

0:43:04 > 0:43:07which could have caught out any unwary buyer.

0:43:07 > 0:43:09The legal pack revealed a covenant

0:43:09 > 0:43:13ruling that only people who had lived and worked in the area

0:43:13 > 0:43:16for a minimum of three years could ever buy it.

0:43:16 > 0:43:19However, this was no problem for Craig and his partner Cathy,

0:43:19 > 0:43:24who fulfil the criteria as she has lived in Devon for several years.

0:43:24 > 0:43:28They bought the three-bed house for £128,000

0:43:28 > 0:43:31and it looked like a pretty straightforward renovation job -

0:43:31 > 0:43:33at first...

0:43:34 > 0:43:39- It's a good solid house for a new project.- Project? Tell me about that.

0:43:39 > 0:43:43Well, hopefully... It's only minor changes we want to do. There'll be...

0:43:43 > 0:43:47The bathroom upstairs will be reorganised and, down here,

0:43:47 > 0:43:49we're probably going to take the chimneys out down here

0:43:49 > 0:43:51and into the bedrooms.

0:43:51 > 0:43:55And also swap the kitchen round into this back area.

0:43:55 > 0:43:58And then maybe build a two-bed on the side.

0:43:58 > 0:44:02- And maybe build a two-bed on the side?- Yes.- Right.

0:44:02 > 0:44:05- An entire new house?- Yes. - Which would be a separate build...

0:44:05 > 0:44:07It would be tagged on to the side of this,

0:44:07 > 0:44:11so this would become the mid-terrace and then there'll be one on the side.

0:44:11 > 0:44:15Wow. An unexpected and ambitious plan.

0:44:15 > 0:44:17Just what we love on Homes Under The Hammer.

0:44:17 > 0:44:21Craig is not only a builder, he's also a trained architect,

0:44:21 > 0:44:25so his timescale of six to 12 months seemed possible.

0:44:25 > 0:44:28So, did he manage to pull off his ambitious plan?

0:44:28 > 0:44:31# It takes two, baby

0:44:31 > 0:44:34# It takes two, baby

0:44:34 > 0:44:36# To make our dream come true. #

0:44:36 > 0:44:4016 months later, and it's not quite there just yet.

0:44:40 > 0:44:45We had some properties we had to sell, which we sold nine months ago.

0:44:45 > 0:44:49Then there's been a slight delay on the planning issue,

0:44:49 > 0:44:54and the main delay's been through having to have a sewer diversion.

0:44:54 > 0:44:57It originally ran across where the new property is going to go,

0:44:57 > 0:44:58so we've had to have a sewer diversion

0:44:58 > 0:45:00to divert it around the property.

0:45:00 > 0:45:04That was initiated about five months ago

0:45:04 > 0:45:06and was only just completed about a month ago.

0:45:06 > 0:45:09And since then, we've managed to get the slabbing

0:45:09 > 0:45:13and get the frame nearly watertight.

0:45:13 > 0:45:16Originally tried for a three-bedroom house,

0:45:16 > 0:45:18we wanted it to come a further metre out at the back.

0:45:18 > 0:45:21But, unfortunately, they were not very keen on that,

0:45:21 > 0:45:25so we compromised and went for the two-bed.

0:45:25 > 0:45:28This is the downstairs of the new build.

0:45:28 > 0:45:32It is going to be basically open-plan.

0:45:32 > 0:45:36There's got to be a toilet going underneath the staircase there,

0:45:36 > 0:45:41and the kitchen area's going to be across and round the back there.

0:45:41 > 0:45:44And then this is just general living area.

0:45:44 > 0:45:47Upstairs will be the two bedrooms and a small bathroom.

0:45:47 > 0:45:51And considering this whole extra house is an added bonus,

0:45:51 > 0:45:54I'm impressed to see how well this is taking shape.

0:45:54 > 0:45:57But progress on renovating the original house

0:45:57 > 0:45:59hasn't been quite as dynamic.

0:46:01 > 0:46:04Right, well, this is the kitchen/dining area.

0:46:04 > 0:46:05We've taken all...

0:46:05 > 0:46:07There was a big chimney breast

0:46:07 > 0:46:09and all the water cylinders and everything

0:46:09 > 0:46:11and a back boiler in that corner.

0:46:11 > 0:46:14The window behind you has been changed

0:46:14 > 0:46:16to a window-and-door combination.

0:46:16 > 0:46:20We've bricked up the doorway to the lounge

0:46:20 > 0:46:22and we're going to move the kitchen area back down to here.

0:46:22 > 0:46:25And that's going to span round the corner here,

0:46:25 > 0:46:27which should make a lovely kitchen/dining area.

0:46:29 > 0:46:31I think this is a really promising project.

0:46:31 > 0:46:34So what will two local property experts make of it?

0:46:34 > 0:46:38First, let's have some expert information about that covenant

0:46:38 > 0:46:40on former local-authority houses

0:46:40 > 0:46:43and if it will have any impact on the values.

0:46:43 > 0:46:47It started in the '80s when they started selling the council houses,

0:46:47 > 0:46:52and that was to keep them so they were affordable to the local area.

0:46:52 > 0:46:54The property that's being built adjacent to this,

0:46:54 > 0:46:59the new build, that will also have the restriction as well.

0:46:59 > 0:47:02I've always found that not to be an issue in any way, shape or form

0:47:02 > 0:47:04as to what you can get for the house eventually,

0:47:04 > 0:47:08because the likelihood is it's going to be someone from Devon anyway.

0:47:08 > 0:47:11That has a little bit of effect on the price,

0:47:11 > 0:47:14purely because it limits your market to local people.

0:47:14 > 0:47:18And also there's some companies, some of the mortgage companies,

0:47:18 > 0:47:21that are a little bit limited in lending towards those,

0:47:21 > 0:47:23but there are companies out there that will do it.

0:47:23 > 0:47:27What do they think of the changes that the couple have in mind?

0:47:27 > 0:47:30They've changed the accommodation downstairs

0:47:30 > 0:47:33with swapping the kitchen and the dining area around,

0:47:33 > 0:47:34which I think is nice

0:47:34 > 0:47:37because we've got the kitchen overlooking the garden.

0:47:37 > 0:47:39If you've got a family that are coming in,

0:47:39 > 0:47:42Mum often likes to be in the kitchen and doing things

0:47:42 > 0:47:43and she can look out over the garden,

0:47:43 > 0:47:46rather than looking out of the front of the property.

0:47:46 > 0:47:49Erm, they're going to put a new bathroom suite in.

0:47:49 > 0:47:50Neutral, simple, you know,

0:47:50 > 0:47:55nothing too extravagant for the type of property that you've got.

0:47:55 > 0:47:57And same again with next door and, from what they're explaining,

0:47:57 > 0:47:59that's the sort of thing they're going to do.

0:48:01 > 0:48:04Sounds like Craig is doing all the right things.

0:48:04 > 0:48:06But does that translate into profit?

0:48:06 > 0:48:10The property was bought at auction for 128,000

0:48:10 > 0:48:14and Craig reckons it will take 15,000 to finish the original house

0:48:14 > 0:48:16and another 60,000 to do the new build,

0:48:16 > 0:48:20bringing his total expenditure to 203,000.

0:48:21 > 0:48:25What do the agents think the houses could sell for?

0:48:27 > 0:48:31When the original, the mother house, is in apple-pie order,

0:48:31 > 0:48:34I'd expect to see that on the market for £160,000.

0:48:34 > 0:48:37I think, because you're going to make it from a semidetached

0:48:37 > 0:48:40or an end-of-terrace to a mid-terrace now,

0:48:40 > 0:48:45I think you'd be looking somewhere in the region of £150,000-£155,000.

0:48:45 > 0:48:50Yes, that's a little bit better than we expected. Yes, that will do fine.

0:48:51 > 0:48:52No wonder Craig is happy.

0:48:52 > 0:48:59Those valuations would net Craig and Cathy a profit of £17,000.

0:49:01 > 0:49:02And what about that added bonus -

0:49:02 > 0:49:06the new house that's going to be next door?

0:49:06 > 0:49:11When the new house is a fully functional and lovely home,

0:49:11 > 0:49:15I could see it on the market at £145,000.

0:49:15 > 0:49:21We'd value the new build at somewhere between £140,000 and £145,000.

0:49:21 > 0:49:24So, taking those top estimates for both houses,

0:49:24 > 0:49:30that's a profit of just over £100,000 before tax and fees.

0:49:30 > 0:49:33Oh, OK. That's a little bit more on the new build, but, um...

0:49:33 > 0:49:38And about what I expected on this, so... Yes, that will be all right.

0:49:38 > 0:49:40# It all adds up... #

0:49:40 > 0:49:43The agents thought that the rental yield of the new property

0:49:43 > 0:49:46would be around 13%. Pretty good!

0:49:46 > 0:49:49So does this herald a change of direction for Craig?

0:49:51 > 0:49:54Up till now, I've always done renovation works,

0:49:54 > 0:49:57so this is my first attempt at new build,

0:49:57 > 0:49:59and it seems to be going quite well at the moment

0:49:59 > 0:50:01so I might try it again.

0:50:04 > 0:50:08Let's change track and return to Ilkeston near Nottingham,

0:50:08 > 0:50:12once home to the proud Stanton Ironworks.

0:50:12 > 0:50:15But now the trains carry commuters, not coal.

0:50:15 > 0:50:20We met Nicola, who bought this three-bed terrace for 64,500,

0:50:20 > 0:50:23and property was quite a career change for her.

0:50:24 > 0:50:2626 years in IT.

0:50:26 > 0:50:28Then you wake up one morning and think,

0:50:28 > 0:50:31"I've had enough of this." Is that what happened or what?

0:50:31 > 0:50:34Er, yeah. I'd been thinking about it for a couple of years.

0:50:34 > 0:50:39I had somebody who was in estate agency for a while

0:50:39 > 0:50:43and she sort of started mentoring me. So she's given me some great advice.

0:50:43 > 0:50:47- Oh, good.- I haven't had to do all the due diligence, albeit I should,

0:50:47 > 0:50:50but she's been telling me which places to avoid

0:50:50 > 0:50:54and where to buy and how much to offer, so I've had that help.

0:50:54 > 0:50:56Yeah, it's worked out well.

0:50:56 > 0:50:58Advice is always essential,

0:50:58 > 0:51:02and that knowledge saw Nicola get a property filled with character,

0:51:02 > 0:51:05but problems, like a downstairs loo.

0:51:05 > 0:51:08But I had a handy idea of how to fix that.

0:51:10 > 0:51:14Have your door here so you can get access to it,

0:51:14 > 0:51:15obviously, off the landing.

0:51:15 > 0:51:18You wouldn't lose too much space from the two bedrooms,

0:51:18 > 0:51:20you've solved that problem downstairs,

0:51:20 > 0:51:22that can become a utility room

0:51:22 > 0:51:24and suddenly you've got a really nice,

0:51:24 > 0:51:27still three-bedroomed but bathroom-upstairs property.

0:51:27 > 0:51:28Result!

0:51:28 > 0:51:32Nicola hoped she and her partner Andrew would retire

0:51:32 > 0:51:33courtesy of her portfolio,

0:51:33 > 0:51:37and was very specific about her property target.

0:51:37 > 0:51:40- My plan is to get 23 properties. - 23?- Yeah.

0:51:40 > 0:51:44I know it's a weird number, but that's what we've worked it out as,

0:51:44 > 0:51:47- that we can both retire on 23 properties.- Oh, right.

0:51:47 > 0:51:48And be financially free.

0:51:48 > 0:51:51She set herself a three-month timescale,

0:51:51 > 0:51:54and four months later we're back for a look.

0:51:55 > 0:51:59The house is still a rosy hue, but is the inside in the pink too?

0:52:29 > 0:52:31What a brilliant renovation.

0:52:31 > 0:52:33Light, bright and a delight! Hold on...

0:52:35 > 0:52:38That old bathroom is now a smart new utility room.

0:52:39 > 0:52:41Nicola has been as good as her word

0:52:41 > 0:52:44and has moved the bathroom to exactly where it should be -

0:52:44 > 0:52:45upstairs.

0:52:45 > 0:52:49By dividing the master bedroom, she's kept three bedrooms

0:52:49 > 0:52:52even though she used the smallest one for the bathroom.

0:52:52 > 0:52:54Result!

0:52:54 > 0:52:58This is the bathroom. Basically, we managed to bring it upstairs.

0:52:58 > 0:53:01Keep the original feature.

0:53:01 > 0:53:05And, yeah, it was trickier than I thought it was going to be,

0:53:05 > 0:53:07but, yeah, managed to get it in and it looks great.

0:53:08 > 0:53:11She's kept original features in the rest of the house too,

0:53:11 > 0:53:13but not the original layout.

0:53:13 > 0:53:17What was a single living room/dining room has now been restored

0:53:17 > 0:53:19to two separate rooms.

0:53:19 > 0:53:23I was advised by a couple of people at an estate agent,

0:53:23 > 0:53:26that it was probably advisable to make it back into two rooms,

0:53:26 > 0:53:29albeit I know open-plan sells.

0:53:29 > 0:53:31I think because it is such a big house

0:53:31 > 0:53:32and it's got some big spaces,

0:53:32 > 0:53:37it would make it more workable to have two separate rooms,

0:53:37 > 0:53:38dining and lounge.

0:53:38 > 0:53:42Somebody else said, "You can shut your kids in one room

0:53:42 > 0:53:45"and go in the other room." So, yeah, I took that advice,

0:53:45 > 0:53:47and I think it works. It works well.

0:53:47 > 0:53:51When I bought the house, it was in quite a bad state,

0:53:51 > 0:53:53so it needed gutting.

0:53:53 > 0:53:56I've decorated throughout, taken all the woodchip off the walls,

0:53:56 > 0:54:00which was a nightmare. Basically put a new kitchen in downstairs.

0:54:00 > 0:54:03Where I wanted to put the bathroom

0:54:03 > 0:54:05wasn't actually the place it ended up.

0:54:05 > 0:54:07The joists in the flooring upstairs,

0:54:07 > 0:54:09I was hoping they were going to go one way

0:54:09 > 0:54:12and, when I discovered that they were going the other way,

0:54:12 > 0:54:16I had to get all the pipe work changed upstairs as well.

0:54:16 > 0:54:21Restored the fireplaces, because they needed a little bit of TLC,

0:54:21 > 0:54:26and carpeted upstairs and laminated downstairs.

0:54:26 > 0:54:30Nicola had set herself a budget of £15,000 on this,

0:54:30 > 0:54:32her biggest project so far.

0:54:32 > 0:54:35So did she stick to that?

0:54:35 > 0:54:37I actually did come in bang on budget.

0:54:37 > 0:54:43I've spent £15,000, which I'm really pleased about.

0:54:43 > 0:54:46I cleared a lot of the house myself

0:54:46 > 0:54:51and took up all the old flooring, got out the old bathroom downstairs.

0:54:51 > 0:54:55Erm, I haven't done any of the skilled work myself.

0:54:55 > 0:54:57I had a really good team of people.

0:54:57 > 0:55:00I needed a lot of help, it being my first project,

0:55:00 > 0:55:03and, yeah, I got that.

0:55:03 > 0:55:05Nicola's hard work and that added help

0:55:05 > 0:55:08mean she's finished in three months, bang on time.

0:55:08 > 0:55:11And now it's time to see what two local property experts

0:55:11 > 0:55:14think of the new layout - and it's the auctioneer that sold it

0:55:14 > 0:55:17and the agent who saw it when we first visited.

0:55:17 > 0:55:19I think the new layout of the property is great.

0:55:19 > 0:55:22I really like how they've added the utility room off the kitchen,

0:55:22 > 0:55:25and they've managed to get the bathroom upstairs

0:55:25 > 0:55:27whilst maintaining three bedrooms.

0:55:27 > 0:55:28It's very interesting, isn't it?

0:55:28 > 0:55:33Because 30 years ago, two rooms became one -

0:55:33 > 0:55:36in the current age, one room now becomes two,

0:55:36 > 0:55:39so you've put it back to how it was when it was built.

0:55:39 > 0:55:41It's lot more family-friendly.

0:55:41 > 0:55:43Paying £64,500 at auction,

0:55:43 > 0:55:46plus her renovation of 15,000,

0:55:46 > 0:55:49means her total investment is 79,500.

0:55:51 > 0:55:54If this was being put on the market for sale,

0:55:54 > 0:55:58I suppose the asking price would probably be about 99,950,

0:55:58 > 0:55:59just short of 100,000.

0:55:59 > 0:56:03I would expect to achieve about mid-90s, 94, 95,

0:56:03 > 0:56:05maybe £96,000 for it.

0:56:05 > 0:56:07If it was placed on the open market for sale,

0:56:07 > 0:56:10we'd recommend an asking price between £95,000 and £100,000.

0:56:12 > 0:56:15So a top valuation of £100,000

0:56:15 > 0:56:20would give Nicola a pre-tax profit of £20,500.

0:56:20 > 0:56:22What does she make of that?

0:56:24 > 0:56:25Those figures sound really good.

0:56:25 > 0:56:30I was thinking 95,000-100,000 anyway, so spot-on.

0:56:30 > 0:56:33Spot-on, but maybe not much use,

0:56:33 > 0:56:36as Nicola planned to add this to her rental portfolio.

0:56:36 > 0:56:39So, what can she expect for lettings?

0:56:39 > 0:56:41If the property was to go on the rental market,

0:56:41 > 0:56:46we'd recommend an asking price of £500-£525 per calendar month.

0:56:46 > 0:56:48If this went on the rental market,

0:56:48 > 0:56:52it would achieve about £500 per calendar month.

0:56:52 > 0:56:55And average valuation of £500 per calendar month

0:56:55 > 0:56:58gives Nicola a yield of 7.5%.

0:56:58 > 0:57:03Is that a PAWS-itive number, or a cat amongst the pigeons?

0:57:03 > 0:57:06I think those rental figures are pretty low.

0:57:06 > 0:57:11I've manage to get somebody to rent, albeit subject to contract,

0:57:11 > 0:57:13for 575 per calendar month.

0:57:13 > 0:57:15MUSIC: Feels Like The First Time by Foreigner

0:57:15 > 0:57:18# It feels like the first time... #

0:57:18 > 0:57:21Although she has already got three let properties,

0:57:21 > 0:57:24this was Nicola's first major renovation job,

0:57:24 > 0:57:26and I think she's done really well.

0:57:26 > 0:57:28If she gets that £575,

0:57:28 > 0:57:31her yield will be over 8.5%.

0:57:31 > 0:57:36It looks like property number 23 will happen some day.

0:57:36 > 0:57:38Is she happy with how it's all gone?

0:57:38 > 0:57:43Hopefully, if a family can move in and make a home here, it's lovely.

0:57:43 > 0:57:46It's huge, and for the price I bought for it

0:57:46 > 0:57:50and what I've spent on it, I've made a good profit and I'm really happy.

0:57:54 > 0:57:57Well, as you've just seen, investing in property

0:57:57 > 0:57:59can be a bit of a learning curve.

0:57:59 > 0:58:01But don't worry, we'll be back next time

0:58:01 > 0:58:02with more hints and tips for you.

0:58:02 > 0:58:07- Look forward to seeing you then, on Homes Under The Hammer. - Goodbye for now.- Goodbye.