0:00:02 > 0:00:04Hello and welcome to the show. More and more people are looking
0:00:04 > 0:00:07to property as a way of investing their money rather than leaving it
0:00:07 > 0:00:11- in the bank.- Yes. You do need to have a bit of cash, some confidence
0:00:11 > 0:00:14and be prepared to do the hard work.
0:00:14 > 0:00:17A good way to get a feel of your local market,
0:00:17 > 0:00:19though, is to head down to the auction
0:00:19 > 0:00:22and see what's going under the hammer.
0:00:48 > 0:00:51Do your research and talk to the experts before you buy.
0:00:51 > 0:00:54If you do that, you'll be on the right road to a sound investment.
0:00:54 > 0:00:58Indeed. So let's look at what inspired the buyers on today's show.
0:01:00 > 0:01:04I meet a Birmingham developer who isn't too keen on breaking the bank.
0:01:04 > 0:01:08- So what is the budget? - The budget is £1,000.- 1,000?!- Yeah.
0:01:11 > 0:01:15And I am hoping that this London flat is worth the journey.
0:01:17 > 0:01:18Thank goodness I'm here!
0:01:20 > 0:01:23Would you be brave enough to buy this Dunfermline plot
0:01:23 > 0:01:25without planning permission? This man was.
0:01:25 > 0:01:27Well, it is the old saying,
0:01:27 > 0:01:30"Buy land, my son, they don't make it any more."
0:01:30 > 0:01:32All these properties have been sold at auction,
0:01:32 > 0:01:35and we'll find out who bought them and what they paid for them
0:01:35 > 0:01:37when they went under the hammer.
0:01:37 > 0:01:39That's yours, sir. Good contest.
0:01:44 > 0:01:47# The old village, baby
0:01:47 > 0:01:50# Ain't large enough to be a town. #
0:01:54 > 0:01:57This pretty and popular spot is Harborne,
0:01:57 > 0:02:01a suburb only about three miles west of the city of Birmingham,
0:02:01 > 0:02:04but with a much more village-y feel about it.
0:02:04 > 0:02:06It has plenty of local amenities
0:02:06 > 0:02:09and some attractive historical buildings.
0:02:09 > 0:02:13And I'm just a hop, skip and a jump away from that village centre.
0:02:13 > 0:02:15So nice, residential area.
0:02:15 > 0:02:17Obviously, very close to local schools - there is
0:02:17 > 0:02:18one right across the road.
0:02:18 > 0:02:21Here to see a three-bed terrace
0:02:21 > 0:02:24at a guide price the like of which I've not heard before -
0:02:24 > 0:02:26£64,000 to £69,000.
0:02:26 > 0:02:29Isn't that, like, an odd amount?
0:02:29 > 0:02:32Anyway, it is what it is. And it looks pretty good from the outside.
0:02:32 > 0:02:33Whoo, whoo, whoo!
0:02:33 > 0:02:36Being near a school doesn't ring everyone's bell -
0:02:36 > 0:02:39it can be a bit noisy.
0:02:39 > 0:02:41Maybe it depends how much of a curmudgeon you are.
0:02:41 > 0:02:45Thank goodness for double glazing, eh?
0:02:45 > 0:02:48Away from the noise of the school then and into the property.
0:02:48 > 0:02:51And straightaway, a really nice feel. It doesn't smell damp.
0:02:51 > 0:02:54The carpets look like they're in good condition.
0:02:54 > 0:02:55Nice little entrance area here.
0:02:55 > 0:02:57Stairs up to your bedrooms there.
0:02:57 > 0:02:59And then progressing into the kitchen.
0:02:59 > 0:03:01Now, it is not in bad condition.
0:03:01 > 0:03:02I mean, if you are renting this place out,
0:03:02 > 0:03:04you'd pretty much leave it as it is.
0:03:04 > 0:03:07It all seems to be vaguely working, which is good.
0:03:07 > 0:03:08Not a bad size.
0:03:08 > 0:03:10So, yeah, that gets my seal of approval.
0:03:10 > 0:03:12And then, through this way.
0:03:12 > 0:03:15I like houses where you can walk around, it's...
0:03:15 > 0:03:18I don't know, just I like it. It's feng shui. It works for me.
0:03:18 > 0:03:22This here... A large lounge, lots of light. You have got an open fire.
0:03:22 > 0:03:25Yeah, ticking a lot of boxes already.
0:03:25 > 0:03:29And it's not just the space that is encouraging.
0:03:29 > 0:03:33The central heating and boiler look pretty new and in good shape.
0:03:34 > 0:03:36The electrics appear to be modern.
0:03:36 > 0:03:40Even so, I would have them checked out by a qualified electrician.
0:03:40 > 0:03:43But otherwise, there really is very little here you could fault.
0:03:46 > 0:03:49So, upstairs. Nice little landing area.
0:03:49 > 0:03:51And then a separate loo and bathroom.
0:03:51 > 0:03:53You probably know, I actually quite like that.
0:03:53 > 0:03:56Other people might want to consider knocking that into one.
0:03:56 > 0:03:59And then currently three bedrooms. Smaller boxroom there.
0:03:59 > 0:04:02Largish bedroom towards the front there.
0:04:02 > 0:04:03And then a third bedroom there.
0:04:03 > 0:04:07And then what could potentially be a fourth bedroom is actually
0:04:07 > 0:04:10currently laid out as a wet room.
0:04:10 > 0:04:12If you didn't need those facilities,
0:04:12 > 0:04:14that would then become another bedroom.
0:04:14 > 0:04:18So a four-bedroom property. Wow, for that guide price, pretty good.
0:04:20 > 0:04:23Yes, this wet room has been nicely done,
0:04:23 > 0:04:25but obviously for a specific purpose.
0:04:25 > 0:04:28It certainly wouldn't take much to convert it into a more
0:04:28 > 0:04:33conventional bathroom or strip it out to create that extra bedroom.
0:04:33 > 0:04:35Or alternatively, that rather dated bathroom
0:04:35 > 0:04:39and loo could be either upgraded or made into a bedroom.
0:04:39 > 0:04:41Either way, it would be quite
0:04:41 > 0:04:44straightforward to make this into a four-bedroom house again.
0:04:44 > 0:04:47And those changes alone would increase its value,
0:04:47 > 0:04:50which from an investor's point of view, is all good news.
0:04:52 > 0:04:55So, from what looks like a new house from the outside,
0:04:55 > 0:04:58you might have expected a very small rear garden.
0:04:59 > 0:05:01Hold that thought for a second.
0:05:01 > 0:05:03Before I move onto the garden, look at this.
0:05:03 > 0:05:06Just outside the back door, there is a soil pipe.
0:05:06 > 0:05:07And going into it,
0:05:07 > 0:05:11some pipes from probably the toilet or basin upstairs.
0:05:11 > 0:05:13As you can see, they are dripping just little
0:05:13 > 0:05:15amounts of water into this area of the property.
0:05:15 > 0:05:17"So what?", you might say.
0:05:17 > 0:05:18Well, believe me,
0:05:18 > 0:05:21just that amount of water dripping into that spot over
0:05:21 > 0:05:23a relatively short amount of time is going to cause all
0:05:23 > 0:05:25sorts of problems for the foundations.
0:05:25 > 0:05:27It could lead to subsidence in the future.
0:05:27 > 0:05:30So, if you've got that going on in your house, sort it out now.
0:05:30 > 0:05:32And if you were to buy this place,
0:05:32 > 0:05:35definitely that is something that I would sort out pretty pronto.
0:05:35 > 0:05:37Meanwhile, back to that garden. And...
0:05:37 > 0:05:42Oh, no! Look at this! Not some postage stamp with artificial grass.
0:05:42 > 0:05:46No, no, no. A great-sized, well-established garden,
0:05:46 > 0:05:47with nice trees and shrubs.
0:05:48 > 0:05:52It doesn't really tally with the look from the outside.
0:05:52 > 0:05:54This is kind of intriguing.
0:05:54 > 0:05:56The garden really is a great bonus.
0:05:56 > 0:05:59It is a fantastic wildlife sanctuary at present.
0:06:03 > 0:06:06There is also some useful outbuildings with
0:06:06 > 0:06:07a loo and storage space.
0:06:09 > 0:06:11And a handy side passageway.
0:06:14 > 0:06:18So, it is great to have the access to the garden, but what is that?!
0:06:20 > 0:06:23That, dear viewer, is a flying freehold.
0:06:23 > 0:06:25I thought it felt a bit weird upstairs,
0:06:25 > 0:06:27like it was bigger than downstairs.
0:06:27 > 0:06:29Well, the reason is that bit there is actually
0:06:29 > 0:06:31part of the upstairs of this building.
0:06:31 > 0:06:35"So what?", you might think, "Fantastic news." Well, no.
0:06:35 > 0:06:39When it comes to lending, mortgage lenders... Unless that is absolutely
0:06:39 > 0:06:42clear in the title deeds, you might find that there's a bit of an issue.
0:06:42 > 0:06:46So make sure your solicitor checks it out before you buy it.
0:06:46 > 0:06:49A flying freehold won't necessarily stop you from getting
0:06:49 > 0:06:51a mortgage, but it could make it more difficult,
0:06:51 > 0:06:57limiting the lenders and potentially making the repayment more costly.
0:06:57 > 0:06:59Another thing to note about this house
0:06:59 > 0:07:03is that it is non-standard concrete construction.
0:07:03 > 0:07:07Non-standard construction can affect the mortgageability of the property.
0:07:07 > 0:07:11And a way to overcome this can be to build a brick layer.
0:07:11 > 0:07:13But you need to check this with a surveyor.
0:07:13 > 0:07:16That is what has been done here, as you can see.
0:07:18 > 0:07:20Parking is also pretty scarce round here,
0:07:20 > 0:07:23see you want to think about off-street parking.
0:07:23 > 0:07:24The neighbours have done it
0:07:24 > 0:07:27and I think it would be a real bonus for this house.
0:07:32 > 0:07:34But what does a local property expert make
0:07:34 > 0:07:37of this pretty together property?
0:07:38 > 0:07:41The property is actually a very good property.
0:07:41 > 0:07:42It's a quiet, tidy property.
0:07:42 > 0:07:44I mean, there are a few things that need doing,
0:07:44 > 0:07:47like decorative and maybe new carpets.
0:07:47 > 0:07:48There is a wet room upstairs,
0:07:48 > 0:07:51which I would convert into a bedroom to make it a four-bedroom,
0:07:51 > 0:07:53which would make it more desirable for letting and living.
0:07:53 > 0:07:55Well, there is
0:07:55 > 0:07:58then a few potential improvements which could add some value.
0:07:58 > 0:08:01But with a guide price of £64,000 to £69,000,
0:08:01 > 0:08:04could it make a good investment on the resale market?
0:08:06 > 0:08:11Renovated as it is, in terms of accommodation, the property would
0:08:11 > 0:08:14sell on the open market for something between £105,00
0:08:14 > 0:08:15and £110,000.
0:08:15 > 0:08:17If this property was to be a four-bedroom
0:08:17 > 0:08:19and the wet room was converted,
0:08:19 > 0:08:22it would probably be on the open market for about £125,000
0:08:22 > 0:08:24to £130,000.
0:08:24 > 0:08:27What about its rental potential?
0:08:27 > 0:08:30As a three-bed, this property would rent for something between
0:08:30 > 0:08:33£600 per calendar month and £650 per calendar month.
0:08:33 > 0:08:36If the property was renovated to make a four-bed, the rental
0:08:36 > 0:08:40would be something between £650 per calendar month and £700 per
0:08:40 > 0:08:43calendar month, obviously depending on the condition of the property.
0:08:47 > 0:08:49Well, clarify that flying freehold issue,
0:08:49 > 0:08:52figure out what you are going to do with all those bathrooms,
0:08:52 > 0:08:54and I think you've got yourself a cracking little property here.
0:08:54 > 0:08:58Let's see who agreed when it went under the hammer.
0:08:58 > 0:08:59This next lot
0:08:59 > 0:09:03is a traditional three-bedroom freehold
0:09:03 > 0:09:05mid-terraced house.
0:09:05 > 0:09:07Where shall we start, folks? Lots of interest.
0:09:07 > 0:09:1070,000 to get it started. Anyone want to buy this?
0:09:10 > 0:09:12At £70,000 to get it going.
0:09:12 > 0:09:14Where are we?
0:09:14 > 0:09:16At 70,000, and thank you.
0:09:16 > 0:09:19At £70,000 then.
0:09:19 > 0:09:21Do I have 75 anywhere?
0:09:21 > 0:09:2375 on the front.
0:09:23 > 0:09:26You want one. If we're quick with ones. 76.
0:09:26 > 0:09:2977? 77. 78?
0:09:29 > 0:09:3178. 79?
0:09:32 > 0:09:3479. 80?
0:09:34 > 0:09:3680. 81?
0:09:37 > 0:09:40No? 81. 82?
0:09:40 > 0:09:41No.
0:09:41 > 0:09:45At £81,000, on sale, make no mistake.
0:09:45 > 0:09:48One, two, three...
0:09:48 > 0:09:53496, that is yours, sir, at £81,000. And well done.
0:09:53 > 0:09:58And so the hammer fell at £81,000 on the three-bed mid-terrace.
0:09:58 > 0:10:00And the delighted bidder was Jimmy.
0:10:01 > 0:10:03Jimmy lives locally and works
0:10:03 > 0:10:06in the family property developing company.
0:10:06 > 0:10:08And he joined me, along with his brother Wassim,
0:10:08 > 0:10:10back at the Harborne house.
0:10:11 > 0:10:15- Jimmy, Wassim, great to meet you both.- Nice to meet you too.
0:10:15 > 0:10:18Congratulations. Tell me why you wanted to buy this place.
0:10:18 > 0:10:21What it is, it fell in our budget
0:10:21 > 0:10:24for what we wanted to purchase at the auction.
0:10:24 > 0:10:26And to be honest, it was in the range,
0:10:26 > 0:10:28so we thought we'd just go for it.
0:10:28 > 0:10:30Right. I understand this is part of a family business.
0:10:30 > 0:10:32- You want to tell me a bit about that?- Yeah.
0:10:32 > 0:10:35What it is, we work alongside our four uncles.
0:10:36 > 0:10:38Within us, we have got, like, about
0:10:38 > 0:10:41- 100 houses throughout the portfolio, yeah.- Wow!
0:10:41 > 0:10:44So the family have a history of property?
0:10:44 > 0:10:47Yeah, we have been doing it for the last...I'd say about, oh,
0:10:47 > 0:10:4815, 20 years?
0:10:48 > 0:10:51So how do you split up the work that needs to be done?
0:10:51 > 0:10:52Wassim, what do you do for instance?
0:10:52 > 0:10:55Yeah, well, I do go to the auctions too
0:10:55 > 0:10:56and I do purchase my own as well.
0:10:56 > 0:10:58- Right. OK.- And just pretty up, really, just like that.
0:10:58 > 0:11:01Right. And Jimmy, what do you sort of specialise in?
0:11:01 > 0:11:04I mainly go to the auctions...
0:11:04 > 0:11:08Well, this particular property, I did, like, kind of blindly buy it.
0:11:08 > 0:11:09How do you mean?
0:11:09 > 0:11:13Because I didn't view it before I bought it, kind of thing.
0:11:13 > 0:11:16But that was only because it fell into, you know, the budget.
0:11:16 > 0:11:19And I did take a bit of a gamble on this one.
0:11:19 > 0:11:21So what did you think when you walked through the door?
0:11:21 > 0:11:24Well, we were really, really glad the way it turned out.
0:11:24 > 0:11:27You know, we were really happy. Yeah.
0:11:27 > 0:11:31Hm, not seeing it before they buy? Always risky.
0:11:31 > 0:11:33But these guys are experienced developers
0:11:33 > 0:11:35with plans to rent it out.
0:11:35 > 0:11:37And I guess, if you have got 100 properties,
0:11:37 > 0:11:41you'd feel you can cope with most things a house can throw at you.
0:11:45 > 0:11:48- So what is the budget?- The budget is £1,000.- 1,000?!- Yeah.
0:11:48 > 0:11:51What are you planning to do for that?
0:11:51 > 0:11:54Well, in that, we are going to get the wet room converted.
0:11:54 > 0:11:56- Into a...?- Into a bedroom.- OK.
0:11:56 > 0:11:59The toilet and the bath together, the wall knocked down.
0:11:59 > 0:12:03We're going to get the garden done as well, all cleaned out.
0:12:03 > 0:12:05Other than that, just a bit of painting.
0:12:05 > 0:12:08And with the bathroom, new suite? New...?
0:12:08 > 0:12:11We're going to get...we're thinking of getting a new one, yeah.
0:12:11 > 0:12:14You must know people if you're going to get all that done for 1,000 quid.
0:12:14 > 0:12:16I know!
0:12:16 > 0:12:19Yeah, we are going to stick to our budget, but we will...
0:12:19 > 0:12:22- More or less around £1,000.- Wow. And timescale?
0:12:22 > 0:12:25- Between one and two weeks. - Weeks?!- Yeah.
0:12:25 > 0:12:29- MARTIN LAUGHS Very fast.- Bing! In here.
0:12:29 > 0:12:31For this property, we've got someone that's ready
0:12:31 > 0:12:33to get into it straightaway.
0:12:33 > 0:12:36- So I guess that's another reason why you need to do it quickly.- Exactly.
0:12:36 > 0:12:38- Well, listen, congratulations. Good to meet you.- Brilliant.
0:12:38 > 0:12:41- Nice to meet you too.- Good luck with it.- Take care.
0:12:41 > 0:12:43- Thanks for your time.- Thank you.
0:12:43 > 0:12:46Well, the brothers breaking a golden rule
0:12:46 > 0:12:50in not viewing the property beforehand. Tut-tut!
0:12:50 > 0:12:53You know it is a bad thing to do, don't you?
0:12:53 > 0:12:57Anyway, it seems like they got away with it in this instance.
0:12:57 > 0:13:02But £1,000 to do it up in one to two weeks? Really?
0:13:02 > 0:13:05You can find out how they get on later in the show.
0:13:08 > 0:13:11Maida Vale in the city of Westminster, in London, is
0:13:11 > 0:13:15recognisable by its large late Victorian and Edwardian
0:13:15 > 0:13:20blocks of mansion flats in these beautiful tree-lined streets.
0:13:20 > 0:13:24It certainly is a vibrant, affluent backdrop, with Portobello Road
0:13:24 > 0:13:29and Little Venice along with cafe culture right on your doorstep.
0:13:29 > 0:13:31It certainly is a lovely place to live.
0:13:35 > 0:13:38Right on the fringes of Maida Vale is Maida Hill, which is
0:13:38 > 0:13:40slightly less expensive to buy in.
0:13:40 > 0:13:43But this is a vibrant, colourful neighbourhood.
0:13:45 > 0:13:48It also has plenty of shops and cafes of its own,
0:13:48 > 0:13:50not to mention a bustling marketplace.
0:13:54 > 0:13:57They're also not far from Westbourne Park Tube Station and a short
0:13:57 > 0:14:02jaunt into London city centre, making this area the cat's pyjamas.
0:14:04 > 0:14:07The property I am here to see today is literally moments
0:14:07 > 0:14:09away from this buzzing part of London.
0:14:09 > 0:14:11You've got lots of little market stalls here.
0:14:11 > 0:14:14It really is a thriving community.
0:14:14 > 0:14:18And the property I am here to see is a two-bedroom flat.
0:14:18 > 0:14:20And it is above this delightful little cafe here.
0:14:20 > 0:14:24Guide price - £225,000.
0:14:28 > 0:14:32Now, bear with me, won't you? There's a fair few stairs to climb.
0:14:32 > 0:14:34# We're running up that road
0:14:34 > 0:14:36# We're running up that hill
0:14:36 > 0:14:39# We're running up that building. #
0:14:42 > 0:14:44Thank goodness I am here!
0:14:44 > 0:14:45I know I said it was at the top,
0:14:45 > 0:14:47but it really is at the top of the top of the top.
0:14:47 > 0:14:50There are a lot of stairs to climb.
0:14:50 > 0:14:52And I don't even have any shopping bags.
0:14:52 > 0:14:56So, once I've got over that shock, let's have a look around this flat.
0:14:56 > 0:15:00Now, straightaway, you don't get the feeling of space and high ceilings.
0:15:00 > 0:15:03It is quite a small, compact flat.
0:15:03 > 0:15:05Bedroom - small.
0:15:05 > 0:15:08Second bedroom - small again.
0:15:08 > 0:15:11Bathroom - not bad. Blue tiles, we could change that.
0:15:11 > 0:15:16And into the living room/kitchen/sitting area.
0:15:16 > 0:15:21So, the layout is not fantastic here and space is not at abundance,
0:15:21 > 0:15:25so I think I would try and change this kitchen around.
0:15:25 > 0:15:28You've got to think about putting a little table in here as well,
0:15:28 > 0:15:31so you can eat. I'd get rid of all this furniture
0:15:31 > 0:15:34and just have something a lot more manageable.
0:15:34 > 0:15:38What you could also do is maybe not have the bedroom here as
0:15:38 > 0:15:41a bedroom, and you could move all this furniture into this room
0:15:41 > 0:15:43and call it a living room.
0:15:43 > 0:15:45But then that would leave you with one bedroom.
0:15:45 > 0:15:47So you have got adaptable space.
0:15:47 > 0:15:49You could do a one-bedroom flat, a two-bedroom flat.
0:15:49 > 0:15:51Let's not forget where we are in London.
0:15:51 > 0:15:55It is in a vibrant place and it would rent like that, this property.
0:15:55 > 0:15:57So you can do lots with it.
0:15:57 > 0:16:00For me, it is just a little bit on the small side.
0:16:04 > 0:16:05On the plus side though,
0:16:05 > 0:16:08the property is in pretty good condition, so it wouldn't
0:16:08 > 0:16:12take much to get it ready for the rental or sales markets,
0:16:12 > 0:16:17especially if you are happy with the layout as it is.
0:16:17 > 0:16:19It does need central heating installing,
0:16:19 > 0:16:23but with a guide price of 225,000+
0:16:23 > 0:16:25in a sought-after area
0:16:25 > 0:16:27such as Maida Hill, this little flat
0:16:27 > 0:16:29could bring in a big profit.
0:16:30 > 0:16:35# From small things, Mama Big things one day come. #
0:16:35 > 0:16:39We've asked along a local property expert for their opinion.
0:16:41 > 0:16:45It is a tiny flat. It is not the biggest of flats, but it has got
0:16:45 > 0:16:48two good-sized bedrooms, it is a good location.
0:16:48 > 0:16:51It would be ideal for
0:16:51 > 0:16:55young couples or a first-time buyer who possibly can rent out
0:16:55 > 0:16:56the second bedroom.
0:16:59 > 0:17:02While first-time buyers might fancy this tiny flat,
0:17:02 > 0:17:06there might be one drawback for anyone needing finance.
0:17:06 > 0:17:11There are certain mortgage lending companies that are stricter
0:17:11 > 0:17:15with regard to lending above commercial premises.
0:17:15 > 0:17:18But that's not to say if you have a good enough deposit, you can
0:17:18 > 0:17:20get lending on that.
0:17:20 > 0:17:23Something for any potential buyer to look at, then,
0:17:23 > 0:17:26but let's start considering the numbers.
0:17:27 > 0:17:32In the current rental market, we would expect to achieve £350
0:17:32 > 0:17:36per week, which is approximately £1,500 per calendar month.
0:17:36 > 0:17:39So that's good. What about the sales?
0:17:39 > 0:17:41Once renovated, I think
0:17:41 > 0:17:45this apartment should achieve in the region of £400,000.
0:17:45 > 0:17:51Well, if you do get it anywhere near that guide price of £225,000+
0:17:51 > 0:17:53and keep costs down,
0:17:53 > 0:17:56that could potentially be a very healthy return on your investment.
0:17:56 > 0:18:00So selling or renting on should be straightforward.
0:18:02 > 0:18:04Very much a demand. There is a real shortage of properties
0:18:04 > 0:18:07in Maida Vale at the moment.
0:18:07 > 0:18:10This is a great central London location here.
0:18:10 > 0:18:13But let's not forget this snug flat is above a shop.
0:18:13 > 0:18:17And there are quite a lot of stairs to climb before you even get inside.
0:18:17 > 0:18:19Still, you're five minutes from the Tube station
0:18:19 > 0:18:22and a ten-minute walk from one of London's most famous
0:18:22 > 0:18:24bustling markets - Portobello Road.
0:18:24 > 0:18:28So let's see who fancied this lot when it went to auction.
0:18:35 > 0:18:37Self-contained, third-floor flat,
0:18:37 > 0:18:39200 may I say?
0:18:39 > 0:18:41Thank you, gentleman there. At 200.
0:18:41 > 0:18:43Shall we say 210?
0:18:43 > 0:18:44210 will be it, thank you. 210.
0:18:44 > 0:18:47So 220 now. 230?
0:18:47 > 0:18:49230, thank you.
0:18:49 > 0:18:51And 240. 250? No.
0:18:51 > 0:18:54240 then. In the sort of coral shirt there.
0:18:54 > 0:18:56240.
0:18:56 > 0:18:57250 anywhere?
0:18:58 > 0:19:04With the lot proving popular, we rejoin at 320,000.
0:19:04 > 0:19:06320, gentleman there.
0:19:06 > 0:19:08Sunglasses on his head.
0:19:08 > 0:19:10£320,000.
0:19:10 > 0:19:11First time at 320.
0:19:13 > 0:19:15Second time at 320.
0:19:17 > 0:19:19He's back. Thank you, 325. 330 now.
0:19:19 > 0:19:21It's still going. 35? He's thinking.
0:19:21 > 0:19:23330 then, the gentleman here.
0:19:23 > 0:19:26330,000 for the first time.
0:19:26 > 0:19:2835. 40?
0:19:30 > 0:19:31Says no. OK, I think we are closed.
0:19:31 > 0:19:34So we have got 335 here, very front.
0:19:34 > 0:19:36335 for the first.
0:19:36 > 0:19:37Second.
0:19:37 > 0:19:3940, he's back. 45?
0:19:40 > 0:19:43He says no. First time.
0:19:43 > 0:19:44Second time.
0:19:44 > 0:19:45345.
0:19:48 > 0:19:50Quite sure?
0:19:50 > 0:19:51I'm trying for you.
0:19:52 > 0:19:53345, very front.
0:19:53 > 0:19:56White shirt and shorts. First time.
0:19:56 > 0:19:57Second time.
0:19:58 > 0:20:03Third and final time. Very front then at 345,000, against you.
0:20:03 > 0:20:06There we go. Sold. Fair enough.
0:20:08 > 0:20:12# Smooth operator
0:20:12 > 0:20:16# Smooth operator. #
0:20:17 > 0:20:21The successful bidder was Aleksandar, originally from Serbia.
0:20:21 > 0:20:25And if he was nervous about the price, well, he didn't show it.
0:20:25 > 0:20:29Aleksandar has been living in the United Kingdom for 50 years
0:20:29 > 0:20:32and has been a property developer for 30 of those.
0:20:32 > 0:20:36I met him back at his latest purchase to find out his plans.
0:20:37 > 0:20:40- Aleksandar, congratulations. - Thank you.
0:20:40 > 0:20:42What was it like for you at the auction?
0:20:42 > 0:20:44Well, it was a good surprise for me.
0:20:44 > 0:20:47So, you obviously turned up on the day with the money
0:20:47 > 0:20:50- ready to buy this?- Yes, yes.
0:20:50 > 0:20:52So why did you want to buy this flat?
0:20:52 > 0:20:58Because it is a very good position, very close to West End,
0:20:58 > 0:21:01very close to Paddington and
0:21:01 > 0:21:05all the facilities around here.
0:21:05 > 0:21:09There is a mini market here. Too many shops.
0:21:09 > 0:21:11And it is a very good position.
0:21:11 > 0:21:15Everybody wants to like to be near the centre of London
0:21:15 > 0:21:20so they doesn't have to travel too far and to waste time.
0:21:20 > 0:21:23Have you bought it for yourself to live in or as an investment?
0:21:23 > 0:21:26No, no, as an investment, yeah.
0:21:26 > 0:21:28And what are you going to do to the flat?
0:21:28 > 0:21:31Are you going to let it out or are you going to do it up and sell it?
0:21:31 > 0:21:34I'm going to do it up and sell it, yeah.
0:21:34 > 0:21:37I don't like to let it out, it's too...
0:21:37 > 0:21:38I'm too old for that.
0:21:38 > 0:21:41What do you mean you're too old for that?
0:21:41 > 0:21:44Well, it's too much work, too much bother with tenants.
0:21:44 > 0:21:46And it is not a very good job here.
0:21:46 > 0:21:49So, were you happy with the price you paid on auction day?
0:21:49 > 0:21:51I am very happy, yeah, yeah.
0:21:51 > 0:21:53I was very happy when I saw the flat
0:21:53 > 0:21:58because it is in much better condition than I thought it was.
0:21:58 > 0:22:01- So had you viewed the flat before the auction?- No.
0:22:01 > 0:22:03- SHE GASPS - So you purely just looked at it
0:22:03 > 0:22:07- in the catalogue?- Yeah, I looked at it on the computer,
0:22:07 > 0:22:10internet. But...
0:22:10 > 0:22:12I didn't think I would buy it
0:22:12 > 0:22:17because I thought it would be much more expensive flat.
0:22:17 > 0:22:20But at the auction,
0:22:20 > 0:22:22when I saw how cheap it is, then I...
0:22:22 > 0:22:25I just took it. I took a chance.
0:22:25 > 0:22:30In whatever condition, in this part of London,
0:22:30 > 0:22:31I couldn't make a mistake.
0:22:31 > 0:22:34And what are you going to do inside to really make this place look
0:22:34 > 0:22:40- wow?- I hope to put a new floor and new central heating.
0:22:40 > 0:22:44- And what about the bathroom? - Yes, bathroom as well.
0:22:44 > 0:22:46- Bathroom has to be changed. - So, everything.
0:22:46 > 0:22:49- You're going to paint it, kitchen, bathroom, new flooring.- Yeah.
0:22:49 > 0:22:51What is your budget? How much money have you got to spend?
0:22:51 > 0:22:54Well, about £10,000.
0:22:54 > 0:22:58Aleksandar is clearly confident that he has made a sound investment
0:22:58 > 0:23:01here and he plans to consult local property agents before he makes
0:23:01 > 0:23:04any changes to the layout.
0:23:04 > 0:23:07Of course, he would have to check any structural changes
0:23:07 > 0:23:10meet with the freeholder's permission.
0:23:10 > 0:23:14The flat is leasehold and has just over 100 years left on the lease,
0:23:14 > 0:23:17and the freeholder intends doing some of the work to the
0:23:17 > 0:23:22block, so Aleksandar will wait until that is done before selling.
0:23:22 > 0:23:24What is the freeholder doing here?
0:23:24 > 0:23:27Is he going to be upgrading the property?
0:23:27 > 0:23:31Well, he's going to do external work on the roof, yeah?
0:23:31 > 0:23:34- Now, that is great news for you. - Yeah.- Somebody that's bought this
0:23:34 > 0:23:35at auction, obviously,
0:23:35 > 0:23:38- you didn't know that prior to the sale.- But I have to pay...the
0:23:38 > 0:23:41tenants, we have to pay for that, so I will pay my part.
0:23:41 > 0:23:44Aleksandar, good luck with the project.
0:23:44 > 0:23:47- And I think I am right in saying you were lucky here.- Thank you.
0:23:47 > 0:23:48Thank you.
0:23:48 > 0:23:53Aleksandar, well, he took a big risk here by not seeing this flat,
0:23:53 > 0:23:54but luckily, it has paid off.
0:23:54 > 0:23:59He has got £10,000 to spend and years of experience behind him.
0:23:59 > 0:24:02Join me later in the programme to find out
0:24:02 > 0:24:05if Alex has made a profit in Maida Vale.
0:24:08 > 0:24:13Still to come, in Dunfermline, it all boils down to the three Ps -
0:24:13 > 0:24:17planning, parking and pavements.
0:24:20 > 0:24:23And in Maida Hill, will the profits be pouring in from Aleksandar's
0:24:23 > 0:24:26top-floor flat? We'll find out later.
0:24:31 > 0:24:35It was just outside Birmingham, in the popular residential
0:24:35 > 0:24:39area of Harborne, where we first came across a three-bedroom,
0:24:39 > 0:24:42mid-terraced property that was actually in pretty good nick.
0:24:42 > 0:24:46Double glazing, central heating, OK kitchen set-up,
0:24:46 > 0:24:49a layout that just, well, worked.
0:24:49 > 0:24:54It also had the opportunity to add value relatively easily
0:24:54 > 0:24:57with a wet room that could be converted back into a bedroom,
0:24:57 > 0:25:00which would then make it a four-bedroom house.
0:25:00 > 0:25:03But overall, the property, from a buy-to-let point of view,
0:25:03 > 0:25:05well, it was looking pretty rosy,
0:25:05 > 0:25:08and that is exactly why brothers Jimmy
0:25:08 > 0:25:14and Wassim bought it for £81,000 as yet another addition to the
0:25:14 > 0:25:18family firm's 100-strong letting portfolio.
0:25:18 > 0:25:21But they weren't planning on a big spend on this one.
0:25:21 > 0:25:23# We're talking about money, money
0:25:23 > 0:25:26# We're talking about money, money... #
0:25:26 > 0:25:30- So, what is the budget? - The budget is £1,000.- 1,000?- Yeah.
0:25:30 > 0:25:32What are you planning to do for that?
0:25:32 > 0:25:35Well, in that we are going to get the wet room converted into the bedroom.
0:25:35 > 0:25:36OK.
0:25:36 > 0:25:39The toilet and the bath together, the wall knocked down,
0:25:39 > 0:25:43going to get the garden done as well, all cleaned out.
0:25:43 > 0:25:46- Other than that, just a bit of painting.- And time scale?
0:25:46 > 0:25:49- Between one and two weeks.- Weeks? - Will have it done, yeah.
0:25:49 > 0:25:51HE LAUGHS
0:25:51 > 0:25:52We are very fast.
0:25:53 > 0:25:55And part of the rush was
0:25:55 > 0:25:58because they already had a tenant lined up, so the sooner
0:25:58 > 0:26:02they could get it ready, the sooner it could start earning its keep.
0:26:03 > 0:26:06And now, just three weeks later, we are
0:26:06 > 0:26:10back to find out how project manager Jimmy has got on.
0:26:11 > 0:26:14Yes, well, outside was already in good shape,
0:26:14 > 0:26:18though there are plans to put in off-road parking in the future.
0:26:19 > 0:26:21But what about inside?
0:26:31 > 0:26:34We've had the whole house renovated.
0:26:34 > 0:26:38We've had the upstairs bathroom and toilet knocked into one.
0:26:39 > 0:26:41This is really sensible and allowed them
0:26:41 > 0:26:44to put in a good size family bath.
0:26:47 > 0:26:50We've had the wet room converted into a bedroom.
0:26:51 > 0:26:54And having returned the wet room to bedroom
0:26:54 > 0:26:56and given the other three bedrooms a good makeover,
0:26:56 > 0:26:59the property is now a four-bedroomed house.
0:27:02 > 0:27:05Did they meet that two week deadline?
0:27:06 > 0:27:08Yeah. It's been done in two weeks.
0:27:10 > 0:27:11That's pretty impressive.
0:27:11 > 0:27:15And it wasn't just the house they completed in two weeks.
0:27:16 > 0:27:19Initially, the garden was overgrown.
0:27:19 > 0:27:21The fact that we've had it all tidied up,
0:27:21 > 0:27:24it has really turned out to be a really big garden
0:27:24 > 0:27:26and you get to see the whole of the garden,
0:27:26 > 0:27:29and surprisingly, it goes over the fence as well.
0:27:29 > 0:27:31It's a really big garden.
0:27:32 > 0:27:34For garden lovers, and I am one,
0:27:34 > 0:27:38this lovely green space is definitely an asset.
0:27:38 > 0:27:41I'm so pleased that they have kept all of these well-established
0:27:41 > 0:27:43shrubs and plants.
0:27:43 > 0:27:47So, what has Jimmy been doing for this short two-week project?
0:27:47 > 0:27:50For the last two weeks I've been, like, here every day,
0:27:50 > 0:27:55on top of all the workers, just making sure everything's perfect
0:27:55 > 0:27:57and to be honest, it's all been done good.
0:27:57 > 0:28:00Yes, it certainly has in terms of timescale,
0:28:00 > 0:28:02but what about that rather tight budget?
0:28:04 > 0:28:07Initially, the budget was £1,000,
0:28:07 > 0:28:12but we've had to stretch it up to around £1,800.
0:28:12 > 0:28:15That's due to the fact that we've had a lot of stuff done.
0:28:17 > 0:28:21Even so, £1,800 seems like a good deal for what they've achieved.
0:28:21 > 0:28:25And with their £81,000 purchase price,
0:28:25 > 0:28:28it takes their total spend to £82,800.
0:28:29 > 0:28:33So, have they done enough to make this ready for the local market?
0:28:33 > 0:28:35What do two local estate agents think?
0:28:37 > 0:28:40First time I've been inside the property, I think
0:28:40 > 0:28:43the work that has been done has been done to a tasteful standard.
0:28:43 > 0:28:46It's very neutral throughout which will appeal to the
0:28:46 > 0:28:48buyer for the sale and the rental market.
0:28:48 > 0:28:52The property is particularly good for a family purchase or tenant.
0:28:52 > 0:28:57I think the addition of the fourth bedroom will be of benefit
0:28:57 > 0:28:58and add value to the property.
0:28:58 > 0:29:01The layout is very practical.
0:29:01 > 0:29:03Good that it's got an entrance hall with a lounge
0:29:03 > 0:29:05coming off to the right.
0:29:05 > 0:29:08I understand that the owners have also knocked the bathroom
0:29:08 > 0:29:10and the separate WC through to one which is certainly a massive
0:29:10 > 0:29:12improvement to the property.
0:29:14 > 0:29:16So, what might this house they've
0:29:16 > 0:29:23so far spent £82,800 on be worth on the current resale market?
0:29:23 > 0:29:26Should this property come on the open market for sale, I'd recommend
0:29:26 > 0:29:32a guide price of £90,000 to achieve offers between 85,000 and 90,000.
0:29:32 > 0:29:36I believe the property would be marketed at £89,950
0:29:36 > 0:29:41to achieve between £82-85,000.
0:29:41 > 0:29:45Ah, well, those values could see a small loss of £800
0:29:45 > 0:29:49or a potential pre-tax profit of £7,200.
0:29:51 > 0:29:54But there is that off-road parking still to do and it does all
0:29:54 > 0:29:59depend on find a buyer in an area where rental values are strong.
0:29:59 > 0:30:01So what does Jimmy think about that?
0:30:01 > 0:30:03The value doesn't mean much to me
0:30:03 > 0:30:06but because it's going on the rental market,
0:30:06 > 0:30:09that was the key thing that we were looking forward to.
0:30:09 > 0:30:12And to be honest, because we've got people lined up for it already,
0:30:12 > 0:30:17tenants, they are moving in and about three days' time so, yeah.
0:30:18 > 0:30:20Yes, this has never been about resale.
0:30:20 > 0:30:25In fact, the family firm have yet to sell any of their 100+ properties.
0:30:25 > 0:30:27But with that tenant already lined up,
0:30:27 > 0:30:29have they got a good rental rate?
0:30:29 > 0:30:32The rental market in this area is very strong.
0:30:32 > 0:30:34Should this go to the rental markets,
0:30:34 > 0:30:38I would suggest a £700 per calendar month rental.
0:30:38 > 0:30:41I believe if the property was placed on the rental market, we would be
0:30:41 > 0:30:45able to able to achieve a figure of £695-725 per calendar month.
0:30:45 > 0:30:48Well, they are more or less close to what we are getting.
0:30:48 > 0:30:53We are getting £750 per calendar month, so it's all good.
0:30:54 > 0:30:56Well, that's impressive.
0:30:56 > 0:31:01And £750 per calendar month represents an annual rental
0:31:01 > 0:31:06yield in excess of 10%. Not bad at all.
0:31:06 > 0:31:09So, will this family team be back at the auctions?
0:31:11 > 0:31:15Well, my brother is at the auction now and to be honest, I need to find
0:31:15 > 0:31:19out what is going on with him now to see if they have purchased anything.
0:31:19 > 0:31:21And yeah, we will carry on buying more houses.
0:31:28 > 0:31:32So, from a property empire in Birmingham, we moved to Scotland,
0:31:32 > 0:31:37to Dunfermline, a town with a long association with Scottish royalty.
0:31:37 > 0:31:40Beginning in the 11th century
0:31:40 > 0:31:43when King Malcolm III married his bride, Margaret,
0:31:43 > 0:31:46in the local church, which later became Dunfermline Abbey.
0:31:49 > 0:31:50It must have been a great wedding
0:31:50 > 0:31:53because Malcolm took rather a shine to the place,
0:31:53 > 0:31:57and for a while, the town became the unofficial capital of Scotland.
0:31:57 > 0:32:01In more recent times, Dunfermline is famous for being
0:32:01 > 0:32:04the birthplace of renowned philanthropist Andrew Carnegie,
0:32:04 > 0:32:07and was home to '80s pop band Big Country.
0:32:10 > 0:32:12From here, it's an easy commute to Edinburgh
0:32:12 > 0:32:14across the Forth Road Bridge
0:32:14 > 0:32:17and the cities of Glasgow and Dundee aren't too far away.
0:32:18 > 0:32:24Well, just a mile from the town centre of Dunfermline is this plot
0:32:24 > 0:32:29of land that went up for auction with a guide price of £20,000.
0:32:29 > 0:32:32Now, apparently, talking to the locals, for the last 30 years
0:32:32 > 0:32:35it has been used as a car park, and that indeed is a car.
0:32:35 > 0:32:38What could it be? Well...
0:32:38 > 0:32:40That's for us to discover.
0:32:43 > 0:32:47It's a corner plot of around 250 square metres in size and
0:32:47 > 0:32:50there was obviously a building here at some point,
0:32:50 > 0:32:52long since demolished.
0:32:52 > 0:32:56It sits at quite a high elevation with views to the town.
0:32:56 > 0:33:00The question is - who's going to knock this square into shape?
0:33:02 > 0:33:05# Bend me, shape me, anyway you want me
0:33:05 > 0:33:09# Long as you love me, it's all right. #
0:33:10 > 0:33:12OK, so let's review what we've got here.
0:33:12 > 0:33:17You are obviously in an area where there are lots of utilities.
0:33:17 > 0:33:20I mean, you've got electricity, you've probably got sewerage,
0:33:20 > 0:33:22gas within easy reach so that's good news.
0:33:22 > 0:33:26Bad news is - the roads are extremely narrow
0:33:26 > 0:33:30and you are pretty much surrounded on all sides by housing.
0:33:30 > 0:33:32Those people would probably have something to
0:33:32 > 0:33:34say about whatever was built here.
0:33:34 > 0:33:38So in terms of your potential for planning permission,
0:33:38 > 0:33:40I think not too bad.
0:33:40 > 0:33:42I'm sure the council would like to see it used for something,
0:33:42 > 0:33:44maybe affordable housing.
0:33:44 > 0:33:47All in all, out of ten,
0:33:47 > 0:33:49I'd give it about a 6.5.
0:33:51 > 0:33:56I say 6.5 because the narrow streets around the site will cause no
0:33:56 > 0:33:59end of problems. Just how narrow?
0:33:59 > 0:34:02Well, I didn't bring a tape measure but here is the next best thing.
0:34:09 > 0:34:12Hm, not very scientific but I think you get the picture.
0:34:12 > 0:34:14One thing you are going to have to consider before you develop
0:34:14 > 0:34:16this is an issue of pavements.
0:34:16 > 0:34:21This one is very narrow and you can't just go either extending it
0:34:21 > 0:34:24or taking it away without getting the council involved.
0:34:24 > 0:34:25For them to be involved,
0:34:25 > 0:34:28they're going to have to talk about maybe lowering the kerb...
0:34:28 > 0:34:30Getting people out to do all that kind of stuff
0:34:30 > 0:34:31isn't going to be cheap,
0:34:31 > 0:34:34so it is definitely something to factor into your budget.
0:34:38 > 0:34:40Pavements, parking, and access.
0:34:40 > 0:34:44The local council planning department will have a field day,
0:34:44 > 0:34:46so I reckon it's high time we got
0:34:46 > 0:34:49the opinion of the auctioneer who sold the property.
0:34:50 > 0:34:52Well, it's an interesting little plot.
0:34:52 > 0:34:56It's an elevated position on the northwest side of Dunfermline.
0:34:56 > 0:34:58It's been used as a car park,
0:34:58 > 0:35:02but the vendors have not authorised this use at any time.
0:35:02 > 0:35:04The possibilities for this plot, I think,
0:35:04 > 0:35:09are mainly the opportunity to obtain consent for residential development.
0:35:09 > 0:35:11It's an established residential area.
0:35:11 > 0:35:14There is both traditional houses, stone-built houses,
0:35:14 > 0:35:18and some more modern ones. I think there wouldn't be any problem
0:35:18 > 0:35:21obtaining consent for perhaps two units.
0:35:23 > 0:35:28The agent thinks the site, guided at £20,000, would work for two
0:35:28 > 0:35:33two-bedroom flats and they could each be worth £100-110,000.
0:35:33 > 0:35:38Flats, of course, are usually good rental territory, so in this area
0:35:38 > 0:35:42of Dunfermline, what could each flat be earning on the rental market?
0:35:44 > 0:35:47If the flats were rented out, I would anticipate
0:35:47 > 0:35:52they should be able to get £650 per calendar month for each flat.
0:35:52 > 0:35:55Well, you certainly can't complain about location close to the
0:35:55 > 0:35:57town centre or the fact the plot is nice and level
0:35:57 > 0:35:59and has easy access to services.
0:35:59 > 0:36:03Maybe a few planning permission issues regarding the neighbours
0:36:03 > 0:36:06and these very narrow streets.
0:36:06 > 0:36:09So, not necessarily a no-brainer, but possibly worth a punt.
0:36:09 > 0:36:11Let's see who agreed when it went under the hammer.
0:36:13 > 0:36:15We move on to lot three, we stay in Fife,
0:36:15 > 0:36:17but we move across to Dunfermline.
0:36:17 > 0:36:20The land we are selling is situated in an attractive mixed
0:36:20 > 0:36:24residential area approximately one mile from the town centre.
0:36:24 > 0:36:27Somebody start me off with lot three. I'm looking for 20,000.
0:36:29 > 0:36:3120,000 anywhere? 18,000?
0:36:33 > 0:36:35It'll be big enough to put something on this.
0:36:35 > 0:36:38Again, a good development opportunity. 16, then.
0:36:39 > 0:36:43- 16 anywhere?- Could be 15? - 15, 15 I will take. Thank you.
0:36:43 > 0:36:4615 to get it going. Is there 16 anywhere else?
0:36:47 > 0:36:4916 I have, thank you. 17?
0:36:50 > 0:36:5316,500 on the proxy. Gosh, you're working the hard already.
0:36:53 > 0:36:5816,500 I will take. 17, I am looking for. 17 I have. 17,500?
0:36:58 > 0:37:01Proxy is out. The bid is with a gentleman in the room at 17,000.
0:37:01 > 0:37:04Do we have any other interest?
0:37:04 > 0:37:06We are all done at 17,000, I am selling...
0:37:06 > 0:37:08Any other interest?
0:37:09 > 0:37:1017 going once...
0:37:12 > 0:37:15Twice... Third and final time.
0:37:15 > 0:37:18Sold to the gentleman in the room at 17,000. Thank you.
0:37:21 > 0:37:25The successful bidder getting the lot for £17,000 was Andy.
0:37:26 > 0:37:29Andy is registered blind.
0:37:29 > 0:37:32He currently owns two flats in Edinburgh which he lets out.
0:37:34 > 0:37:36He came along with his wife Shintana to tell us
0:37:36 > 0:37:39what plans he has for this little piece of Dunfermline.
0:37:44 > 0:37:48- Shintana, Andy, nice to meet you both.- Thank you.- Nice to meet you.
0:37:48 > 0:37:50- Congratulations.- Oh, thank you. - Thank you.
0:37:50 > 0:37:54So a plot of land then. Tell me why you wanted to buy it.
0:37:54 > 0:37:57Well, it's the old saying - buy land, my son, they don't make it any more.
0:37:57 > 0:38:00That was it, then? That was the main reason?
0:38:00 > 0:38:02That was the main reason was that we thought
0:38:02 > 0:38:04we would be able to build something on it.
0:38:04 > 0:38:06OK.
0:38:06 > 0:38:09And that's why we decided that we would just go ahead and get it.
0:38:09 > 0:38:11So are you an active property investor?
0:38:11 > 0:38:13- Not really, no.- Right.
0:38:13 > 0:38:18No, I don't have a very good pension so this is my pension fund basically.
0:38:18 > 0:38:19OK.
0:38:19 > 0:38:22So why a plot of land, then,
0:38:22 > 0:38:24rather than a house which you could renovate?
0:38:24 > 0:38:26What led you to this, do you think?
0:38:26 > 0:38:31Partly because we like the challenge of building something new.
0:38:31 > 0:38:33- We just thought it was a good idea. - Right.
0:38:33 > 0:38:36And we are not likely to lose money on land.
0:38:36 > 0:38:37I've watched enough of your programmes to
0:38:37 > 0:38:39look at some of the houses that people will buy
0:38:39 > 0:38:42and the amount of work that they have to do and then.
0:38:42 > 0:38:43MARTIN LAUGHS
0:38:43 > 0:38:45So have you done anything like this before?
0:38:45 > 0:38:49We did buy a house at auction before and Shint and I
0:38:49 > 0:38:53worked on it for three months, and when we sold it we made
0:38:53 > 0:38:57a profit of about £600, so for three months work it wasn't...
0:38:57 > 0:39:01- Right, so not the best financial decision you ever made.- No.
0:39:01 > 0:39:03He paid too much.
0:39:03 > 0:39:06- You paid too much, did you? - Yeah.- Oh, dear.
0:39:07 > 0:39:12Andy's sight loss was due to a degenerative eye condition
0:39:12 > 0:39:15and I wondered what particular challenges property
0:39:15 > 0:39:18development raised for him and how he overcame them.
0:39:20 > 0:39:25I can't see the properties so I have to think of it just in my mind's eye,
0:39:25 > 0:39:29how big it is and what shape the site is and things.
0:39:29 > 0:39:33So what in your mind's eye do you think this looks like?
0:39:33 > 0:39:35It's fairly flat.
0:39:36 > 0:39:41It's almost a square, slightly longer in the downhill section.
0:39:41 > 0:39:44And quite wide. It's quite a large bit of property.
0:39:44 > 0:39:47I didn't envision it being quite so large as this.
0:39:47 > 0:39:51And what about the surroundings, cos that is sort of potentially
0:39:51 > 0:39:54- an issue, isn't it? - Yes. They're very narrow streets.
0:39:54 > 0:39:56This is an old part of Dunfermline built
0:39:56 > 0:40:00probably in the early 19th century.
0:40:00 > 0:40:06A lot of the properties have been demolished and rebuilt.
0:40:06 > 0:40:07And this...
0:40:07 > 0:40:13There was a building here which wasn't there in 1955, so that's...
0:40:13 > 0:40:15- Before I was born.- Right.
0:40:16 > 0:40:19It's been an empty space for a long time.
0:40:19 > 0:40:23- Right, obviously used for car parking it seems at the moment.- Yes.
0:40:23 > 0:40:26- That is an issue around here is car parking.- Right.
0:40:26 > 0:40:30You could always turn it into a car park and rent it out to the locals.
0:40:30 > 0:40:33The council, I don't think, would want that.
0:40:33 > 0:40:35Have they given you an indication then that, in principle,
0:40:35 > 0:40:38- they would be happy for you to something here?- Yes.
0:40:38 > 0:40:42They want a residential property built here. And...
0:40:42 > 0:40:47Their only stipulations would be that we widen the pavement at the front
0:40:47 > 0:40:54and to the side, and that vehicle access from the narrow lane...
0:40:54 > 0:40:58would mean that you have to have enough room to do a three-point turn
0:40:58 > 0:41:02- inside cos they don't want cars reversing out onto the lane.- Right.
0:41:02 > 0:41:04So you'd have to go out nose first.
0:41:04 > 0:41:07So tell me the process from this point on
0:41:07 > 0:41:09as far as you are concerned.
0:41:09 > 0:41:14We have to get drawings done to put in for outline planning
0:41:14 > 0:41:17permission and then if that is agreed then
0:41:17 > 0:41:21we put in for the full planning permission. Then we build the house.
0:41:21 > 0:41:24Right, so have you got architects and builders lined up?
0:41:24 > 0:41:28We have somebody lined up, yeah, a builder and architect, yeah.
0:41:28 > 0:41:31Are they going to be able to describe to you what they're
0:41:31 > 0:41:34planning and you have a very clear image in your mind
0:41:34 > 0:41:35of what is going to be like?
0:41:35 > 0:41:37Yes, I'll leave that to my wife to...
0:41:37 > 0:41:39MARTIN CHUCKLES
0:41:39 > 0:41:41Which way do you think you will go? Do you think you might go
0:41:41 > 0:41:43traditional or ultra modern?
0:41:43 > 0:41:45I like the idea of something really funky here.
0:41:45 > 0:41:47No, I think we will go traditional
0:41:47 > 0:41:50- because it will fit in with the rest of the properties.- OK.
0:41:53 > 0:41:57Andy and Shintana feel that the plot is big enough to take two
0:41:57 > 0:42:01semidetached houses, but given the council's stipulation about
0:42:01 > 0:42:05off-street parking, I'm thinking it might be a tight squeeze.
0:42:05 > 0:42:07Although plans are at an early stage,
0:42:07 > 0:42:13they estimate a budget of £70-80,000 for the completion of the project.
0:42:14 > 0:42:17Do you have any idea what those type of properties would
0:42:17 > 0:42:19sell for once you've built them?
0:42:19 > 0:42:22Cos I'm just hoping that you're going to make more than 600 quid
0:42:22 > 0:42:23- on this deal.- Yeah, I think...
0:42:23 > 0:42:28- I think they will probably sell for roundabout £70,000 each.- OK.
0:42:28 > 0:42:31So factoring in what you paid for the land, you've got a potential...
0:42:31 > 0:42:34- There's a potential. - ..good profit, actually.- Yeah.
0:42:34 > 0:42:38- And timescale? - Hm... One year maybe?- OK.
0:42:38 > 0:42:41I think it will take longer to do the planning than it will to build
0:42:41 > 0:42:44- the houses.- Really? That's toing and froing, then.
0:42:44 > 0:42:47A bit toing and froing as you know yourself, Martin,
0:42:47 > 0:42:49with dealing with planning authorities.
0:42:49 > 0:42:53But the council here have been very helpful.
0:42:53 > 0:42:57You're always taking a chance when you buy a property at auction
0:42:57 > 0:43:00and life is like that, isn't it?
0:43:00 > 0:43:02MARTIN LAUGHS Taking chances.
0:43:02 > 0:43:06Well, listen, congratulations. All the very best and good luck with it.
0:43:06 > 0:43:08- OK, thank you.- I look forward to seeing how you get on.- Thanks.
0:43:08 > 0:43:10Thank you.
0:43:10 > 0:43:13So, Andy with ambitious plans for the site
0:43:13 > 0:43:15and hopefully with the help of Shintana,
0:43:15 > 0:43:18when we return in a year's time, there will be two semis here.
0:43:18 > 0:43:22How will they get on? You can find out later in the show.
0:43:26 > 0:43:29Well, we've already seen how one of our property developers got on.
0:43:29 > 0:43:33- What about the other two?- There were budgets and schedules to stick to.
0:43:33 > 0:43:35Mm, but did they stick to them? Let's find out.
0:43:44 > 0:43:49Back now to the sought after area of Maida Hill in London's West Nine
0:43:49 > 0:43:52were earlier I looked around this two-bedroom flat that
0:43:52 > 0:43:55had a guide price of £225,000+.
0:43:57 > 0:44:00There were lots of stairs which might put people off
0:44:00 > 0:44:03and it was, well, let's say...compact.
0:44:03 > 0:44:06However, it was in good condition
0:44:06 > 0:44:08and could represent a sound investment.
0:44:10 > 0:44:14One man who certainly thought so was Aleksandar,
0:44:14 > 0:44:17who battled it out at auction to buy the property.
0:44:17 > 0:44:21Third and final time at the very front at £345,000 against you...
0:44:21 > 0:44:23It's going to go. Sold to the sir in front.
0:44:28 > 0:44:30Without batting an eyelid,
0:44:30 > 0:44:34Aleksandar paid 110,000 over the guide price.
0:44:37 > 0:44:41And the seasoned property developer, who is originally from Serbia,
0:44:41 > 0:44:44wasn't any more flustered when I met him back at the property.
0:44:47 > 0:44:49So were you happy with the price you paid on auction day?
0:44:49 > 0:44:51I am very happy, yeah, yeah.
0:44:52 > 0:44:55I was very happy when I saw the flat
0:44:55 > 0:44:59because it was in much better condition than I thought it was.
0:44:59 > 0:45:00I didn't think I would buy it
0:45:00 > 0:45:05because I thought it would be much, much more expensive flat,
0:45:05 > 0:45:10but in whatever condition in this part of London,
0:45:10 > 0:45:12I couldn't make a mistake.
0:45:12 > 0:45:15- So had you viewed the flat before the auction?- No, no.
0:45:15 > 0:45:18Gasp! So you purely just looked at it in the catalogue?
0:45:18 > 0:45:21Yeah, I looked at it in the catalogue, on the computer,
0:45:21 > 0:45:22on the internet.
0:45:26 > 0:45:28So, despite breaking Hammer's golden rule,
0:45:28 > 0:45:32Aleksandar was more than confident of a positive outcome
0:45:32 > 0:45:34and he already knew exactly what he wanted.
0:45:36 > 0:45:40And what are you going to do to the flat? Are you going to let it out?
0:45:40 > 0:45:42Are you going to do it up and sell it?
0:45:42 > 0:45:45I'm going to do it up and sell it, yeah, yeah.
0:45:45 > 0:45:49I don't like to let it out. I'm too old for that.
0:45:49 > 0:45:50SHE LAUGHS
0:45:50 > 0:45:52What do you mean you are too old for that?
0:45:52 > 0:45:54Well, it is too much work, too much bother with tenants
0:45:54 > 0:45:56and it's not a very good job.
0:45:57 > 0:45:59So, Aleksandar was set on selling
0:45:59 > 0:46:01and with £10,000 budget,
0:46:01 > 0:46:04he had plans to replace the kitchen and bathroom
0:46:04 > 0:46:05as well as some flooring
0:46:05 > 0:46:08and a general refurbishment job throughout,
0:46:08 > 0:46:11all of which he was hoping to complete within two months.
0:46:15 > 0:46:18So, around one month later, we've returned to Maida Hill,
0:46:18 > 0:46:22and unfortunately, not all has gone to plan.
0:46:33 > 0:46:36Yep, apart from a bit of a paint job throughout,
0:46:36 > 0:46:38there is very little difference.
0:46:41 > 0:46:43Time for us to catch up now with Aleksandar
0:46:43 > 0:46:46to find out why the change of plan.
0:46:47 > 0:46:54My original plan was to refurbish it completely and sell it.
0:46:54 > 0:47:00But unfortunately, the market has stopped rising
0:47:00 > 0:47:07and I couldn't get much profit, so I decided to let it for a while.
0:47:07 > 0:47:13I've got advice from a few estate agents, but I found
0:47:13 > 0:47:19myself as well, that I can get a good price for it at the moment.
0:47:33 > 0:47:35That's the thing in property -
0:47:35 > 0:47:38you have to roll with the changes in the local market conditions.
0:47:38 > 0:47:41In London, prices can be very volatile.
0:47:41 > 0:47:46One moment you think you are on top of the market, next, you're not.
0:47:46 > 0:47:49Aleksandar thinks he's not going to make enough profit by selling on
0:47:49 > 0:47:53at this point, so he's going to rent it out for a while.
0:47:53 > 0:47:54Is he disappointed?
0:47:56 > 0:48:00Overall, it is a good project in my opinion
0:48:00 > 0:48:08because the property is in very good location, property has,
0:48:08 > 0:48:13being on third floor, has a very nice and fresh air.
0:48:13 > 0:48:21And the noise is so quiet that you can feel you are in...
0:48:21 > 0:48:23in the country.
0:48:23 > 0:48:26And it is still walking distance from the city.
0:48:29 > 0:48:34Aleksandar ended up spending just £1,000 of his initial £10,000
0:48:34 > 0:48:37budget and is happy to rent it before he sells.
0:48:37 > 0:48:40So it will be interesting to hear if the two local estate agents
0:48:40 > 0:48:43we asked along think this is the best option.
0:48:46 > 0:48:48It's quite basic if I am being totally honest.
0:48:48 > 0:48:51But it shows clean and tidy.
0:48:51 > 0:48:54Yeah, for the size of the flat,
0:48:54 > 0:48:58I can't see any more work that would enhance it.
0:48:58 > 0:49:01At this stage, I would rent it out
0:49:01 > 0:49:08and keep it for six to 12 months, and then look at where the market is
0:49:08 > 0:49:10and maybe put it on the market at that time.
0:49:10 > 0:49:15Great, just what Aleksandar plans to do. But what rental could he expect?
0:49:16 > 0:49:18This property in the current market would achieve
0:49:18 > 0:49:23£1,450-1,500 per calendar month.
0:49:23 > 0:49:26I would advise putting it on the rental market
0:49:26 > 0:49:29at around £1,500 per calendar month.
0:49:29 > 0:49:32Well, that's better than I thought, yeah.
0:49:32 > 0:49:37I thought it was maximum £1,400.
0:49:38 > 0:49:41So I am quite impressed by that.
0:49:43 > 0:49:47That top valuation of £1,500 per calendar month could mean
0:49:47 > 0:49:52a yield of around 5%. What about that troublesome sales valuation?
0:49:52 > 0:49:57Has it gained any value on Aleksandar's £346,000 investment?
0:49:57 > 0:50:01And does that vindicate Aleksandar's decision to rent?
0:50:01 > 0:50:05I would advise putting it on the market for £360,000.
0:50:05 > 0:50:08This property in the current market would achieve a sale
0:50:08 > 0:50:14price of £365,000-370,000.
0:50:14 > 0:50:20That's why I haven't put it on sale because it's a bit low, yeah.
0:50:23 > 0:50:27That higher valuation of £370,000 would mean a possible
0:50:27 > 0:50:33profit of £24,000, minus the usual taxes and expenses.
0:50:33 > 0:50:36Now some of you might be thinking, "That sounds like a pretty
0:50:36 > 0:50:40"good potential profit in just four weeks with minimal work."
0:50:40 > 0:50:44But she would also have to factor in costs like agents' fees,
0:50:44 > 0:50:48so in this case, Aleksandar has his eyes on a bigger return.
0:50:48 > 0:50:50And the smooth operator that he is,
0:50:50 > 0:50:53he is prepared to play the waiting game.
0:51:00 > 0:51:04We are back in Dunfermline to visit Andy and Shintana who couldn't
0:51:04 > 0:51:09resist temptation and bought this plot of land near the town centre.
0:51:09 > 0:51:13They sealed the deal with a bid of only £17,000
0:51:13 > 0:51:15which sounds like a bargain,
0:51:15 > 0:51:17except this lot came without planning permission.
0:51:20 > 0:51:24You can never be sure what trials and tribulations await you
0:51:24 > 0:51:28once your application hits the desk of the local planning office.
0:51:28 > 0:51:32With that in mind, Andy was keen to get the job started.
0:51:32 > 0:51:36We have to get drawings done to put in for outline planning
0:51:36 > 0:51:41permission and then if that is agreed, then we put
0:51:41 > 0:51:44in for the full planning permission, and then we build the house.
0:51:47 > 0:51:51This wasn't the couple's first foray into property development,
0:51:51 > 0:51:54but they were hoping for a better outcome
0:51:54 > 0:51:56than their previous experience.
0:51:56 > 0:52:00We did buy a house at auction before and Shint
0:52:00 > 0:52:02and I worked on it for three months.
0:52:02 > 0:52:07When we sold it, we made a profit of about £600.
0:52:07 > 0:52:10# She works hard for the money
0:52:10 > 0:52:13# So hard for it, honey... #
0:52:13 > 0:52:16Andy and Shintana were hopeful that this project would generate
0:52:16 > 0:52:19a lot more than £600.
0:52:19 > 0:52:22The plan was to construct two semidetached houses
0:52:22 > 0:52:24with off-street parking,
0:52:24 > 0:52:29and with a budget of £70-80,000 and a time scale of one year.
0:52:29 > 0:52:33It was full steam ahead for this development project, or so we hoped.
0:52:37 > 0:52:41This is how the site looked in November 2013
0:52:41 > 0:52:45and unfortunately, this is how it looked one year later.
0:52:49 > 0:52:53Well, there are a few more weeds, but apart from that,
0:52:53 > 0:52:57I can't see much difference at all. So, what has been going on?
0:52:57 > 0:53:00I think we better catch up with Andy to get the full story.
0:53:02 > 0:53:06We bought the property at auction a year ago.
0:53:06 > 0:53:10It took almost two months to get the finalisation because the council
0:53:10 > 0:53:14had to get permission from the Scottish Office to sell it.
0:53:14 > 0:53:19We then put in for planning, out went planning, and it has taken
0:53:19 > 0:53:23nine months, including an appeal, to get the planning for it.
0:53:24 > 0:53:27Andy projected that dealing with planning would be a slow
0:53:27 > 0:53:29process and he was right.
0:53:29 > 0:53:33He found the experience of dealing with different departments
0:53:33 > 0:53:35terribly frustrating.
0:53:35 > 0:53:38The Estates Department were the ones who were told to
0:53:38 > 0:53:40sell off the odd bits of land.
0:53:40 > 0:53:44The planners wanted a house built on it, the Roads Department
0:53:44 > 0:53:49eventually agreed to where the entrance should be.
0:53:49 > 0:53:53But the council has rejected the planning application
0:53:53 > 0:53:56because there were more than five objections to it.
0:54:01 > 0:54:03And it might not be a surprise to hear
0:54:03 > 0:54:05the substance of those objections.
0:54:06 > 0:54:10The objections were mainly on the ground that the plot had been
0:54:10 > 0:54:13used as an unofficial car park,
0:54:13 > 0:54:17and they objected not to have their free parking available, basically.
0:54:20 > 0:54:24Andy and Shintana successfully appealed the planning decision,
0:54:24 > 0:54:28but the original plans had to be substantially modified,
0:54:28 > 0:54:31so much so that the couple came to a decision...
0:54:32 > 0:54:37Our initial intention was to put two small one-bedroom cottages on it,
0:54:37 > 0:54:40but that wasn't possible with planning terms
0:54:40 > 0:54:45because we would have needed two parking spaces per property,
0:54:45 > 0:54:48and there isn't enough room for four off-street parking spaces.
0:54:48 > 0:54:54So we had to go with the one house - three bedroomed, 1.5 story -
0:54:54 > 0:55:00which meant that we had two parking spaces needed, and that was feasible.
0:55:00 > 0:55:04But that's not what we wanted originally, so we decided
0:55:04 > 0:55:08we'll let someone else have the opportunity of building their house.
0:55:10 > 0:55:13So, Andy and Shintana have decided to cut their losses
0:55:13 > 0:55:17and put the plot back on the market with outlined planning
0:55:17 > 0:55:19permission, so they have added some value.
0:55:19 > 0:55:21But exactly how much?
0:55:24 > 0:55:28We invited to local property experts along to assess the various
0:55:28 > 0:55:30options available with this site.
0:55:30 > 0:55:33The property currently has outlined planning permission
0:55:33 > 0:55:37so one can be fairly safe in the knowledge that
0:55:37 > 0:55:41permission will be granted, albeit for the type of property
0:55:41 > 0:55:46that has been suggested for this site which is a three bedroomed...
0:55:46 > 0:55:48A three-bedroom property.
0:55:48 > 0:55:52There is a shortage of plots to buy, especially suburban plots.
0:55:52 > 0:55:55We are used to rural plots, but suburban plots are hard to come by,
0:55:55 > 0:55:57so yes, there is definitely demand for a plot like this.
0:55:59 > 0:56:02On top of the purchase price at 17,000,
0:56:02 > 0:56:07Andy and Shintana have spent another £5,000 on securing outline
0:56:07 > 0:56:11planning permission, bringing their total spend to £22,000.
0:56:11 > 0:56:13How much is the land worth now?
0:56:15 > 0:56:18A plot like this with outlined planning permission,
0:56:18 > 0:56:21I would value in the region of £45-50,000.
0:56:21 > 0:56:23With outline plan permission,
0:56:23 > 0:56:28I would value this plot between £45-55,000.
0:56:28 > 0:56:31I think these figures are very encouraging and it makes me
0:56:31 > 0:56:34think it was worth all the hassle of getting the planning permission.
0:56:36 > 0:56:38I would have to agree with Andy.
0:56:38 > 0:56:43Selling the land could give him a profit of around £33,000.
0:56:43 > 0:56:45But if he did decide to go ahead with the build,
0:56:45 > 0:56:49what could a three-bedroom house sell for?
0:56:49 > 0:56:52For a three-bed property, if, for example, it were to have an
0:56:52 > 0:56:55en-suite bathroom and be finished to the required standard,
0:56:55 > 0:57:02I would be expecting a valuation of between £155-165,000.
0:57:02 > 0:57:06I would estimate a three-bed detached villa on this plot
0:57:06 > 0:57:08with parking, good specification internally,
0:57:08 > 0:57:13would be valued in the region of £155,000 to £160,000.
0:57:15 > 0:57:18So, have these figures prompted a change of heart?
0:57:19 > 0:57:23I don't think these figures would persuade us to go ahead
0:57:23 > 0:57:24and do anything now.
0:57:26 > 0:57:29I think we are ready to sell at this stage
0:57:29 > 0:57:31and give someone else the opportunity.
0:57:35 > 0:57:38Well, our two intrepid developers have battled through
0:57:38 > 0:57:42the planning process and ended up with a positive outcome.
0:57:42 > 0:57:47If they achieve a sale of £55,000, it will mean a profit,
0:57:47 > 0:57:51before tax and sales fees, of £33,000.
0:57:51 > 0:57:53That's a bit better than 600 quid.
0:58:05 > 0:58:06Well, that's it for today's show.
0:58:06 > 0:58:10We'll have more properties that sold under the hammer for you next time.
0:58:10 > 0:58:13- And we look forward to seeing you then. Goodbye.- Goodbye.