0:00:02 > 0:00:03Hello and welcome to the show.
0:00:03 > 0:00:06Property can be the best investment you will ever make,
0:00:06 > 0:00:08as long as you buy right.
0:00:08 > 0:00:11But where can you buy lots of good value
0:00:11 > 0:00:14and intriguing properties for sale?
0:00:14 > 0:00:16At an auction, of course.
0:00:42 > 0:00:46Whether you are buying a property as a home or an investment,
0:00:46 > 0:00:49you will want to make sure you get a good deal.
0:00:49 > 0:00:53So the question is, did today's buyers on the show do just that?
0:00:53 > 0:00:56Well, let's find out what they bought.
0:00:57 > 0:01:02In Harrow, this tunnel has a bit of mystery and imagination about it.
0:01:02 > 0:01:04I don't know what you could do with this.
0:01:04 > 0:01:06Hello-o-o!
0:01:08 > 0:01:11In Tyne and Wear, the mystery is, why so cheap?
0:01:11 > 0:01:15£15,000. Yes, one, five.
0:01:15 > 0:01:17Wow!
0:01:18 > 0:01:22Whilst in Stoke, there is no mystery about why Bassam bought this three-bed semi.
0:01:22 > 0:01:25What was it about this house that appealed?
0:01:25 > 0:01:27It's the garden.
0:01:29 > 0:01:31All these properties have been sold at auction.
0:01:31 > 0:01:34We'll find out who bought them and what they paid for them
0:01:34 > 0:01:36when they went under the hammer.
0:01:36 > 0:01:38Bought it!
0:01:40 > 0:01:42Harrow in north-west London is a large
0:01:42 > 0:01:46and bustling multicultural area and includes a town centre with plenty
0:01:46 > 0:01:50of shops, green spaces like this, great schools,
0:01:50 > 0:01:53and singer James Blunt was even educated here.
0:01:53 > 0:01:58Will I be singing the praises of today's property? I aim to find out.
0:02:00 > 0:02:03Well, the park is beautiful, so that's a good start
0:02:03 > 0:02:06and from Harrow on the Hill train station you can take the
0:02:06 > 0:02:11under or overground and be in central London in just 20 minutes.
0:02:13 > 0:02:17One and a half miles from central Harrow is today's first auction lot.
0:02:18 > 0:02:22Along this lovely road is the flat I am here to see today.
0:02:22 > 0:02:27It is a one-bedder and it's on the top floor of a three-storey semi.
0:02:27 > 0:02:30Now, it had a guide price of £80,000.
0:02:30 > 0:02:34When I tell you that the two-bed ground floor flat here
0:02:34 > 0:02:38sold for £245,000 back in 2007,
0:02:38 > 0:02:43well, this sounds like it could be good value for money.
0:02:43 > 0:02:46Or is there something rather sinister lurking inside?
0:02:46 > 0:02:48Let's take a closer look and find out.
0:02:48 > 0:02:51# We can't go on together
0:02:51 > 0:02:54# With suspicious minds. #
0:02:56 > 0:02:58You might think I am being a bit suspicious
0:02:58 > 0:03:03and yes, the ground floor does have one more bedroom and outdoor space.
0:03:03 > 0:03:07Could that explain all of the £165,000 difference?
0:03:07 > 0:03:12The property market has gone through a few changes since 2007 too,
0:03:12 > 0:03:16but it's still making me pause for thought.
0:03:16 > 0:03:18As are the stairs to the top floor!
0:03:20 > 0:03:25There is no getting away from it. It's quite high up.
0:03:25 > 0:03:27There are a lot of stairs to climb
0:03:27 > 0:03:31and we are right in the roof of the house.
0:03:31 > 0:03:33So let's have a look around.
0:03:33 > 0:03:36It's a bit on the small size, I'd say.
0:03:36 > 0:03:40You've got a rather smallish bedroom there with windows that need replacing.
0:03:40 > 0:03:42But this is your central living area.
0:03:42 > 0:03:48So, not much of a kitchen. Not a huge space. Signs of damp.
0:03:48 > 0:03:51I actually think this might have been a studio flat at one point
0:03:51 > 0:03:53that somebody has tried to convert.
0:03:53 > 0:03:56Through there we've got the loo, a shower, no bath.
0:03:56 > 0:04:01And something through here. What's this? A little black tunnel.
0:04:01 > 0:04:05I don't know what you could do with this. Hello-o-o-o!
0:04:05 > 0:04:07# Hello
0:04:08 > 0:04:11# Is it me you're looking for? #
0:04:12 > 0:04:14Sorry, I'm afraid not, Lionel.
0:04:14 > 0:04:17What I'm looking for is ways to improve this flat.
0:04:17 > 0:04:22Being in the eaves means options for juggling the space are limited.
0:04:22 > 0:04:25Some stud walls have reduced the pitch a bit,
0:04:25 > 0:04:28but it does mean waste of spaces like that tunnel.
0:04:28 > 0:04:30It all needs a good rethink.
0:04:30 > 0:04:34But with a new kitchen and bathroom and materials all needed,
0:04:34 > 0:04:36there is one thing on my mind.
0:04:37 > 0:04:41Yes, the top floor location of this flat does mean more stairs to climb,
0:04:41 > 0:04:44which is not ideal for transporting building materials.
0:04:44 > 0:04:46You've got to think about all the furniture.
0:04:46 > 0:04:49Although it will save you money on your gym membership!
0:04:49 > 0:04:52But it also has its perks because you've got better views,
0:04:52 > 0:04:57the flat feels safer and more secure and don't forget, heat rises,
0:04:57 > 0:05:00so it will be warmer than its neighbours downstairs.
0:05:01 > 0:05:03# Keep, keep, keep warm
0:05:03 > 0:05:05# Keep, keep warm
0:05:05 > 0:05:07# Keep, keep, keep warm
0:05:07 > 0:05:09# One, two, three, four. #
0:05:10 > 0:05:15Certainly, any money saved on energy bills might mean money for redecoration.
0:05:15 > 0:05:17Goodbye, woodchip!
0:05:18 > 0:05:21There's also bits of damp that need attending to.
0:05:21 > 0:05:25The faults may not be big, but the bill to renovate might well be.
0:05:26 > 0:05:28Now, if you buy this property for £80,000,
0:05:28 > 0:05:33spent 20 grand on the renovations, rent for £850 per calendar month,
0:05:33 > 0:05:38that would give you an impressive rental yield of 10%.
0:05:38 > 0:05:40It sounds like a worthy investment to me.
0:05:42 > 0:05:44And I know there's plenty of rental demand in this area,
0:05:44 > 0:05:48so I'm sure it will be snapped up once it's had a face-lift.
0:05:48 > 0:05:52It all sounds pretty positive so far, doesn't it?
0:05:52 > 0:05:54Well, let's not get too carried away just yet.
0:05:56 > 0:06:01There's a little niggle I just have to get off my chest and tell you about.
0:06:01 > 0:06:05This flat only has 70 years left on its lease.
0:06:05 > 0:06:09Now, that might not sound too short, but it still means that fewer
0:06:09 > 0:06:11mortgage companies will be willing to lend.
0:06:11 > 0:06:15And there will be higher interest rates from those who do.
0:06:15 > 0:06:19Now, you need to speak to the freeholder to discuss the lease extension,
0:06:19 > 0:06:23which could be both time-consuming and costly.
0:06:23 > 0:06:28Don't delay, though, because the shorter it is, the more expensive it will be to extend it.
0:06:29 > 0:06:33This is due to something called marriage value.
0:06:33 > 0:06:37The cost of the lease extension rises as the lease length shortens
0:06:37 > 0:06:41and could easily cost thousands of pounds to renew.
0:06:43 > 0:06:45We invited a local estate agent to the heights
0:06:45 > 0:06:49of this property in Harrow, guided at £80,000.
0:06:50 > 0:06:53I think this property would be an ideal purchase
0:06:53 > 0:06:55for first-time buyers or an investment.
0:06:55 > 0:06:57It would rent out very easily here
0:06:57 > 0:07:01and for a first-time buyer, it's a great way to get on the ladder.
0:07:01 > 0:07:05We already know the flat could rent for £850 per calendar month,
0:07:05 > 0:07:07but what about the option of reselling?
0:07:07 > 0:07:12Once this property is renovated with a short lease, as it remains at the moment,
0:07:12 > 0:07:16I would expect this property to achieve around about the £165,000 mark.
0:07:16 > 0:07:21Once the work is done, there is a real opportunity to make a decent profit from this property.
0:07:21 > 0:07:27But don't forget, it will be trickier to find a buyer with that short lease.
0:07:27 > 0:07:30Would getting it extended lead to healthier profits?
0:07:30 > 0:07:34If this property was to be sold with an extended lease, then I would
0:07:34 > 0:07:37expect this property to achieve around about the £175,000 mark.
0:07:38 > 0:07:41This small flat is not without its issues,
0:07:41 > 0:07:43that short lease being the first of them.
0:07:43 > 0:07:45But this is a convenient location
0:07:45 > 0:07:49and with that £80,000 guide price, I think there's money to be made here.
0:07:49 > 0:07:52Let's find out who agreed when it went to auction.
0:07:56 > 0:07:57This is lot 111.
0:07:58 > 0:08:03Who would like to get me started on this? 80,000 anywhere?
0:08:03 > 0:08:08Thank you. 80, I've got. 81, sir? 81, thank you. 82?
0:08:09 > 0:08:1285 if you want. 86.
0:08:12 > 0:08:1486. 87.
0:08:14 > 0:08:1688.
0:08:17 > 0:08:1989. 90,000.
0:08:19 > 0:08:2491. 92. 93. 94.
0:08:26 > 0:08:2894. 95. 96?
0:08:29 > 0:08:31No?
0:08:31 > 0:08:3396. 97.
0:08:34 > 0:08:3798. 99.
0:08:37 > 0:08:39100,000.
0:08:39 > 0:08:42If not, 99 for the first.
0:08:43 > 0:08:4599 for the second.
0:08:45 > 0:08:4999 for the third and final time. We are all done.
0:08:50 > 0:08:53Can't quite sell it. We have to withdraw that, I'm afraid.
0:08:53 > 0:08:56So this lot didn't sell in the auction room,
0:08:56 > 0:08:58but Conor on the right, who is a carpenter,
0:08:58 > 0:09:03and Daniel, an electrician, made a further offer of £101,000
0:09:03 > 0:09:06after the auction, which was accepted.
0:09:06 > 0:09:10They've bought the flat together with plasterer friend Paul, in the middle.
0:09:10 > 0:09:12These three all live locally
0:09:12 > 0:09:16and have to be the development dream team with all those skills.
0:09:17 > 0:09:20They've all put their jobs on hold to get to grips with this,
0:09:20 > 0:09:22their first property venture.
0:09:23 > 0:09:25Guys, congratulations.
0:09:25 > 0:09:29- Was this the one you wanted to bid for on auction day?- No.
0:09:29 > 0:09:32Originally, we looked at a block of around 200 properties
0:09:32 > 0:09:35and singled out three we would be interested in bidding on.
0:09:35 > 0:09:37We had a gold, silver and a bronze.
0:09:37 > 0:09:42The gold one ended up going for a lot higher than what we had allowed to pay for it
0:09:42 > 0:09:44when you included all the other costs.
0:09:44 > 0:09:46So we had to settle for silver.
0:09:46 > 0:09:48# Hi Ho Silver
0:09:50 > 0:09:52# Here come the Lone Ranger
0:09:54 > 0:09:56# He's riding on down... #
0:09:56 > 0:10:00As silver medals go, this one could be rescued and turned into gold,
0:10:00 > 0:10:05and I think Conor, Paul and Daniel might just be the right lads to do it.
0:10:05 > 0:10:08We've all worked in the construction industry for quite a while now.
0:10:08 > 0:10:12Between all of us, we are at a level where we can do the work ourselves.
0:10:12 > 0:10:15We shouldn't really need to bring in too much outside help.
0:10:15 > 0:10:18- We should be able to do it on our own, hopefully.- How fit are you guys?
0:10:18 > 0:10:22There is a lot of material that needs to be lugged up and down those stairs.
0:10:22 > 0:10:24Carrying things up and down stairs is sort of what I do!
0:10:24 > 0:10:27- You are used to it. - He's the youngest bloke as well.
0:10:27 > 0:10:30- He gets all the good stuff. - Are you the fittest? - I don't know. We'll find out.
0:10:30 > 0:10:34If I go past Daniel when he's halfway up the stairs saying, "Just leave me!"
0:10:34 > 0:10:36We'll find out.
0:10:36 > 0:10:39# Nothing but a silver medal will do. #
0:10:43 > 0:10:46This project won't be a sprint, that's for sure.
0:10:46 > 0:10:51So a real test of their physical, not to mention friendship endurance.
0:10:52 > 0:10:56Their plan is to get this done, sell it on and then take on something else.
0:10:56 > 0:11:00But first things first. Where can you put up a stud wall?
0:11:00 > 0:11:02How can you make more space out of this?
0:11:02 > 0:11:05We are thinking about whacking one through here, carrying this on.
0:11:05 > 0:11:10The bathroom at the moment is tiny. It is 2 metres squared or something.
0:11:10 > 0:11:15If we carry this all down and maybe lose this wall back here,
0:11:15 > 0:11:17that will open up this space, give this space here
0:11:17 > 0:11:21and then we can think about the bedroom in here as well.
0:11:21 > 0:11:24Possibly then a stud wall through here to create a separate bedroom.
0:11:24 > 0:11:27That would then leave an incredibly small living area.
0:11:27 > 0:11:30Yes. It would have to be a living kitchen
0:11:30 > 0:11:33and possibly a kitchen diner with a telly in it.
0:11:33 > 0:11:36We're not too sure how to lay it out yet.
0:11:36 > 0:11:38How much are you hoping to spend here?
0:11:38 > 0:11:43We have budgeted for materials, about £15,000,
0:11:43 > 0:11:46leaving something like a 10% contingency in there.
0:11:46 > 0:11:50The labour then is roughly the same but it's us,
0:11:50 > 0:11:54so we'll wait until the end probably before we see the return proper.
0:11:54 > 0:11:57Another issue you are going to have is that the lease,
0:11:57 > 0:12:01because it's only 70 years. So what do you plan on doing about that?
0:12:01 > 0:12:04We did think about that and looked at it but we are obviously going to
0:12:04 > 0:12:07have to speak to the freeholder and see if he's willing to extend it.
0:12:07 > 0:12:10If he is, that is one thing we will be doing.
0:12:10 > 0:12:13Have you thought about how much it might cost you out of your budget?
0:12:13 > 0:12:17I think some of it will come out of it but it just depends.
0:12:17 > 0:12:22If we can get it, it will be more desirable and it'll be worth more money.
0:12:22 > 0:12:25Good luck with this project. It's going to be really exciting.
0:12:25 > 0:12:28I can't wait see what you do. Well done. Congratulations. Thank you.
0:12:31 > 0:12:35It's a great start that Conor, Paul and Daniel each have useful
0:12:35 > 0:12:38trades that they can use for their first project together.
0:12:38 > 0:12:42But they need to address that short lease before they are upgraded
0:12:42 > 0:12:44to a gold medal for their efforts here.
0:12:44 > 0:12:46Join me later in the show and you can find out
0:12:46 > 0:12:49if they are still friends at the end of it all.
0:12:53 > 0:12:56From gold to precious coal.
0:12:56 > 0:13:00Houghton-Le-Spring is a former coal-mining town in County Durham.
0:13:00 > 0:13:02With the cities of both Durham
0:13:02 > 0:13:06and Sunderland only a few miles away, this town makes a popular
0:13:06 > 0:13:09location for commuters looking for more affordable property.
0:13:11 > 0:13:16Every autumn the town comes alive for 10 days with fireworks, illuminations, events
0:13:16 > 0:13:19and the traditional roasting of the ox,
0:13:19 > 0:13:22which is all part of the famous Houghton Feast,
0:13:22 > 0:13:25an ancient festival dating from the 12th century
0:13:25 > 0:13:28as a dedication to the local parish church.
0:13:30 > 0:13:35I can't wait to feast my eyes on the property I'm here to see.
0:13:35 > 0:13:38It certainly sounds good. A three-bedroom mid-terrace.
0:13:38 > 0:13:43It had a guide price, wait for it, of £15,000.
0:13:43 > 0:13:45Yes, one, five. Wow!
0:13:48 > 0:13:54Yes, wow! I'll say it again. A guide price of £15,000.
0:13:56 > 0:14:00Straightaway, I've definitely been in worse places.
0:14:00 > 0:14:03You know, 15 grand, that's just incredible.
0:14:03 > 0:14:05I like this design feature.
0:14:07 > 0:14:10It looks like it was once an under stairs cupboard.
0:14:10 > 0:14:11It has in fact gone.
0:14:11 > 0:14:16Clearly, somebody has had a good go at clearing it out and it's left...
0:14:17 > 0:14:19..a good sized space.
0:14:19 > 0:14:24I even like this. The old sliding doors. Very '60s.
0:14:26 > 0:14:27But it works.
0:14:27 > 0:14:31Separating a front living room area there, which is a nice size,
0:14:31 > 0:14:34from a rear living room area here.
0:14:34 > 0:14:36Open fire.
0:14:36 > 0:14:38Well, ish!
0:14:38 > 0:14:41Upstairs to your bedrooms and through to the kitchen. Bingo!
0:14:44 > 0:14:47Similarly, it is a good size in here.
0:14:47 > 0:14:50The only thing missing is a kitchen!
0:14:51 > 0:14:53Again, somebody doing a lot of the hard work
0:14:53 > 0:14:55and getting everything out ready for the renovation.
0:14:55 > 0:14:59Typical of this kind of design of property in this part of the country,
0:14:59 > 0:15:04the toilet at the end there so it's at the end of the kitchen.
0:15:04 > 0:15:07In an ideal world you would like that to be upstairs,
0:15:07 > 0:15:10but I think if it means losing a bedroom, don't do it.
0:15:10 > 0:15:13All in all, a very, very good start.
0:15:13 > 0:15:18# I want to be adored. #
0:15:18 > 0:15:22There's clearly a lot of work to do and we are only downstairs,
0:15:22 > 0:15:24but I've seen worse.
0:15:24 > 0:15:28And at that £15,000 guide price, in the right hands,
0:15:28 > 0:15:30this could be a little gold mine.
0:15:34 > 0:15:37Upstairs then. Quite a lot of space like downstairs.
0:15:37 > 0:15:40A good double bedroom there. Single bedroom there.
0:15:42 > 0:15:44Fairly antiquated electrics.
0:15:44 > 0:15:47OK, so we need to factor in replacing that for sure.
0:15:47 > 0:15:54But lots of space. And equally in this rear bedroom. A good size.
0:15:54 > 0:15:58Now, it's very interesting that it's been sort of partly stripped back
0:15:58 > 0:16:00because it gives you a real good canvas to work on
0:16:00 > 0:16:04and you've got to decide before you do anything what you are going to use this place for.
0:16:04 > 0:16:08If it's for you to live in, basically you can do what you want.
0:16:08 > 0:16:11If you are looking at renting it out or moving on,
0:16:11 > 0:16:13you've got to kind of stick to the basics.
0:16:13 > 0:16:17Don't spend too much money, don't personalise it too much,
0:16:17 > 0:16:20keep it simple, keep it clean
0:16:20 > 0:16:23and create something that people can put their own stamp on.
0:16:23 > 0:16:27This is a classic rental and the market is pretty vibrant.
0:16:27 > 0:16:31Of course, it could also make a great starter home for someone.
0:16:31 > 0:16:34It's spacious, has three good-sized bedrooms
0:16:34 > 0:16:37and did I mention that guide price of 15 grand?
0:16:37 > 0:16:40I did? What's not to like?
0:16:40 > 0:16:43# I'm Mr Brightside. #
0:16:46 > 0:16:50At the back of the property you've got this little yard area.
0:16:50 > 0:16:53You can also see... I reckon this house bears very little resemblance
0:16:53 > 0:16:56to what it was like when it was built.
0:16:56 > 0:16:59It looks like there's been an extension up there.
0:16:59 > 0:17:03This whole kitchen and bathroom area is an extension.
0:17:03 > 0:17:07Looking around, some people have created a second story on there.
0:17:07 > 0:17:09That would give you a lot of extra space.
0:17:09 > 0:17:12But also when you come out here, you see,
0:17:12 > 0:17:16like the rest of the place, it needs a bit of sorting out.
0:17:18 > 0:17:22Potential then for an extension but there is a lot of work to do here,
0:17:22 > 0:17:24so you might want to choose your battles.
0:17:26 > 0:17:27I reckon, to get this up to scratch
0:17:27 > 0:17:31you are looking at between £10,000 and £15,000.
0:17:31 > 0:17:35But at a guide price of just £15,000, that doesn't seem too bad.
0:17:37 > 0:17:40Let's find out the thoughts of a local property expert.
0:17:41 > 0:17:44Houghton-Le-Spring is quite a pleasant town
0:17:44 > 0:17:46and very good for commuting.
0:17:46 > 0:17:49The A690 is close by which take you to Durham, Sunderland and beyond.
0:17:49 > 0:17:53To maximise the value of the property, I would probably leave the layout as it is currently
0:17:53 > 0:17:57with the kitchen and bathroom to the ground floor so you don't have
0:17:57 > 0:18:00to go to great expenditure with an extension and huge layout changes.
0:18:00 > 0:18:04When refurbished, I would recommend an asking price of around £80,000.
0:18:04 > 0:18:07A simple refurbishment recommended, then.
0:18:07 > 0:18:10What if the buyer did have an extension and shuffled things about, though?
0:18:10 > 0:18:14If you add an extension and move the bathroom to the first floor
0:18:14 > 0:18:17and retain the same good size bedrooms upstairs, I would
0:18:17 > 0:18:20probably recommend an asking price of between £85,000 and £90,000.
0:18:21 > 0:18:25Those figures mean there would be no point in spending money
0:18:25 > 0:18:28on an extension if you wanted to sell on.
0:18:28 > 0:18:32I think this house is all about rental potential myself.
0:18:32 > 0:18:37Once completed, I would probably recommend between £475 and £500 per calendar month.
0:18:37 > 0:18:40And with an extension?
0:18:40 > 0:18:43I don't believe that the rental figure would change
0:18:43 > 0:18:45if an extension was added to the property.
0:18:45 > 0:18:48It is a pretty stonking house for the money, don't you think?
0:18:48 > 0:18:52Good location. Yes, lots of space.
0:18:52 > 0:18:56For anything like that guide price, an absolute snip.
0:18:56 > 0:18:59Let's see who bought it when it went under the hammer.
0:18:59 > 0:19:03It's a large style three-bedroom house. Anybody at £15,000?
0:19:05 > 0:19:09Gentleman standing. £15,000. Do I have 16 anywhere else?
0:19:09 > 0:19:15I've got one bid at £15,000. 16, sitting down. 17. 17, bid. 18.
0:19:16 > 0:19:22At 17,000. 18 anywhere else? 18, standing. 19?
0:19:22 > 0:19:25I'm here on the left-hand side at £19,000. Do I have 20 anywhere else?
0:19:26 > 0:19:3021. On the telephone at 21,000. We are selling.
0:19:30 > 0:19:34Do I have 23 anywhere else? 23, standing. 25.
0:19:35 > 0:19:37It's against you. The lady at 23,000.
0:19:38 > 0:19:44Not surprisingly, that low guide price of 15 grand had raised lots of interest.
0:19:44 > 0:19:46But it was quickly left far behind.
0:19:46 > 0:19:50We rejoin the bidding at 37,000.
0:19:50 > 0:19:5337. 37. 38.
0:19:53 > 0:20:0038, bid. 39? I'm here in the room at £38,000. I'm going once at 38.
0:20:00 > 0:20:04I'm going for the second time. At £38,000.
0:20:06 > 0:20:0939. 40.
0:20:09 > 0:20:1140,000, bid.
0:20:28 > 0:20:30# Back to life, back to reality... #
0:20:32 > 0:20:36Well, even at 40,000, I still think that property was a steal.
0:20:36 > 0:20:40The successful bidder was June, an experienced property developer
0:20:40 > 0:20:43who with her husband John has renovated
0:20:43 > 0:20:45over 50 properties.
0:20:45 > 0:20:47June, good to meet you.
0:20:47 > 0:20:49- Hello.- Congratulations. - Thank you very much.
0:20:49 > 0:20:52Tell me why you wanted to buy this place?
0:20:52 > 0:20:55It was something that you couldn't not buy.
0:20:55 > 0:20:58Brilliant guide price, good area.
0:20:58 > 0:21:00- Great rental potential. - Had to be done.
0:21:00 > 0:21:04- The guide price was 15, wasn't it? - It was.- And you bought it for 40.
0:21:04 > 0:21:09- Yes.- So, not quite the bargain that 15 would've been.
0:21:09 > 0:21:10- No.- But still pretty good.
0:21:10 > 0:21:13It was never going to go for 15. With the amount of interest, it was always
0:21:13 > 0:21:16going to go for between 35 and 45.
0:21:16 > 0:21:20- 40 was my maximum.- Right. That was it?- That was it.
0:21:20 > 0:21:22- And you did a bit of sneaky bidding, didn't you?- Yes.
0:21:22 > 0:21:24Tell me your technique?
0:21:24 > 0:21:26You always wait until the very end.
0:21:26 > 0:21:29Wait until the end, until the gavel is about to fall
0:21:29 > 0:21:31and then you put your bid in.
0:21:31 > 0:21:33You wait until everybody else is finished.
0:21:33 > 0:21:35If it's still worth bidding on, then, great, you do.
0:21:35 > 0:21:38And if you don't, you just walk away.
0:21:38 > 0:21:41Yes, she talks like an auction veteran. But she isn't.
0:21:41 > 0:21:45I have to admire her game plan and her steely resolve
0:21:45 > 0:21:48in the heat of her very first property auction.
0:21:48 > 0:21:51# Smooth operator... #
0:21:51 > 0:21:54June and John do this for a living,
0:21:54 > 0:21:58and it is just the kind of property that they're interested in.
0:21:58 > 0:22:02So, what was it that attracted you to this particular one?
0:22:02 > 0:22:04It's a three-bed, which is unusual.
0:22:04 > 0:22:07Quite a lot of them tend to be two-beds.
0:22:07 > 0:22:09So three-beds are very popular with families.
0:22:09 > 0:22:14So it's good for resale and it's good for a rental, as well.
0:22:14 > 0:22:16Now, obviously, work has been started. Was that you?
0:22:16 > 0:22:19Yes. We came in and stripped it out
0:22:19 > 0:22:23basically, to see what or how bad it was,
0:22:23 > 0:22:26so we can then get the guys in place to get the works done
0:22:26 > 0:22:28that need to be done.
0:22:28 > 0:22:31- So, when did you complete? - Thursday.- Thursday.
0:22:31 > 0:22:34- Got the keys on Friday. - And today's Tuesday.- Yes!
0:22:34 > 0:22:37So, you don't hang about, do you?!
0:22:37 > 0:22:39Not really, no.
0:22:39 > 0:22:42Got the keys on Friday. The guys have worked all weekend.
0:22:42 > 0:22:47- Wow. - Cleared out several lorry-loads.
0:22:47 > 0:22:50What sparked your interest in property in the first place?
0:22:50 > 0:22:51My dad, probably.
0:22:51 > 0:22:53Whenever we did any work on the house at home,
0:22:53 > 0:22:56- it was always me that got conscripted to help.- Conscripted!
0:22:56 > 0:22:59Conscripted is probably the right word, yes.
0:22:59 > 0:23:02If you want your pocket money, you're working for me.
0:23:02 > 0:23:04Well, money never came into it, just a case of
0:23:04 > 0:23:07- "you're small, get under the floorboards".- Really?- Yeah.
0:23:07 > 0:23:09So, I mean, I've run cables under floorboards
0:23:09 > 0:23:12for when he was doing rewires, and lagged pipes...
0:23:12 > 0:23:15- At what age?- Probably about 11?
0:23:15 > 0:23:1710, 11 - something like that.
0:23:17 > 0:23:18I think he wanted a boy.
0:23:18 > 0:23:21So, no, that's what started me.
0:23:23 > 0:23:26As always, our advice is please get an electrician in,
0:23:26 > 0:23:29and DON'T put your children under the floorboards!
0:23:29 > 0:23:34And June has gone a bit girly, in that she owns a wedding dress shop.
0:23:34 > 0:23:37Anyway, the child apprentice now has bags of experience,
0:23:37 > 0:23:41and a team of trusted builders to get on with the work.
0:23:41 > 0:23:42It needs a damp course,
0:23:42 > 0:23:46it needs a full rewire, a full replumb,
0:23:46 > 0:23:47a full re-skim,
0:23:47 > 0:23:51um...windows, front door, back door, internal doors,
0:23:51 > 0:23:54skirting boards, door frames,
0:23:54 > 0:23:57back moulds, architraves, kitchen, bathroom.
0:23:57 > 0:23:58Decorate, flooring.
0:23:58 > 0:24:02We're not repairing the roof, because the roof is fine.
0:24:02 > 0:24:03Right. Phew.
0:24:03 > 0:24:05The layout will stay basically the way it is.
0:24:05 > 0:24:07It's got a downstairs bathroom,
0:24:07 > 0:24:09which is usual in this area.
0:24:09 > 0:24:13And if I moved it upstairs you'd lose the third bedroom,
0:24:13 > 0:24:14so it negates the need for doing it.
0:24:14 > 0:24:17So, what's the budget for all the work?
0:24:17 > 0:24:20The budget, including fees, is around about the 15,000 mark.
0:24:20 > 0:24:23Right. So what is the timescale?
0:24:23 > 0:24:24Around about three months.
0:24:24 > 0:24:26I thought you'd say three weeks, actually!
0:24:26 > 0:24:29No, they're good, but they're not that fast.
0:24:29 > 0:24:32While her team are getting on with the work,
0:24:32 > 0:24:35June will be focusing on her wedding dress shop.
0:24:35 > 0:24:39We're just about to expand into bigger premises, which is nice.
0:24:39 > 0:24:40Brilliant.
0:24:40 > 0:24:43So, I'm obviously doing something the brides are happy with.
0:24:43 > 0:24:44- Yeah.- So, no, it's really good.
0:24:44 > 0:24:46Very different from this.
0:24:46 > 0:24:48- Well, congratulations.- Thank you. - Good luck with it.
0:24:48 > 0:24:52- Look forward to seeing you again to see how you get on.- Thanks a lot.
0:24:54 > 0:24:56Well, June seems to know exactly what she's up to.
0:24:56 > 0:24:59And, she's not hanging about.
0:24:59 > 0:25:03But, in the business of property developing, time is money.
0:25:03 > 0:25:04How will she get on?
0:25:04 > 0:25:06You can find out later in the show.
0:25:08 > 0:25:12Still to come, in Stoke-on-Trent, I'm feeling the squeeze.
0:25:14 > 0:25:17Actually, up here it feels a bit sort of...cramped!
0:25:19 > 0:25:22And in Tyne and Wear, June pushes ahead.
0:25:22 > 0:25:24They all know their jobs. They do them.
0:25:24 > 0:25:27They know the standard I insist upon, and they deliver.
0:25:30 > 0:25:32It is now back to Harrow in Middlesex,
0:25:32 > 0:25:36and at the top of the three-storey semidetached house
0:25:36 > 0:25:37was this one-bed flat,
0:25:37 > 0:25:39which was not just tired and run down,
0:25:39 > 0:25:41it was dead on its feet.
0:25:41 > 0:25:45It didn't so much need TLC - more like tough love!
0:25:45 > 0:25:47Its lease was also running down
0:25:47 > 0:25:50and, so far, lay at 70 years.
0:25:50 > 0:25:52But there was definite potential here,
0:25:52 > 0:25:55and it was the right sort of project for a first-time developer.
0:25:55 > 0:25:59Well, this place got not one, but three -
0:25:59 > 0:26:02and all of them had the skills to turn the place around,
0:26:02 > 0:26:05with Conor a carpenter, Paul a plasterer,
0:26:05 > 0:26:08and Daniel an electrician, together they had pooled their funds
0:26:08 > 0:26:12and bought the flat for 101,000.
0:26:12 > 0:26:15So, was this the one you wanted to bid for on auction day?
0:26:15 > 0:26:18Er...no, originally we looked at a block of around 200 properties
0:26:18 > 0:26:22and singled out three that we'd be interested in bidding on.
0:26:22 > 0:26:25We had a sort of a gold, silver and a bronze.
0:26:25 > 0:26:27The gold one ended up going for a lot higher
0:26:27 > 0:26:29than we'd allowed to pay for it,
0:26:29 > 0:26:32when you included all the other costs,
0:26:32 > 0:26:34so we had to settle for the silver.
0:26:34 > 0:26:36Well, at least it wasn't the bronze.
0:26:36 > 0:26:39But, with an odd layout and sloping ceilings,
0:26:39 > 0:26:41I reckoned they'd need to practise some real alchemy
0:26:41 > 0:26:43to turn this into gold.
0:26:43 > 0:26:46But they did have a 15 grand budget and the skills,
0:26:46 > 0:26:51so, 15 weeks later, we returned to see if this team are medal winners.
0:26:55 > 0:26:56Wow! I'd say so!
0:27:00 > 0:27:03I hardly recognise this flat.
0:27:03 > 0:27:05They seem to have magicked space out of nowhere!
0:27:16 > 0:27:20That new bedroom has access to the old bathroom area,
0:27:20 > 0:27:22now a beautifully appointed en-suite.
0:27:29 > 0:27:33The team started out planning to just give the place a make-over,
0:27:33 > 0:27:35but that soon changed.
0:27:35 > 0:27:37It was going to be a semi-gut.
0:27:37 > 0:27:39We weren't really planning on doing whole thing.
0:27:39 > 0:27:42But as we got here and started taking things down and moving them,
0:27:42 > 0:27:44we realised we were going to have to do quite a lot more.
0:27:44 > 0:27:45That dark old tunnel?
0:27:45 > 0:27:48Look, it's now a cosy reading nook.
0:27:48 > 0:27:51In the end, the flat was totally gutted
0:27:51 > 0:27:54but in the process, the team blocked up the old bathroom doorway,
0:27:54 > 0:27:57creating a larger kitchen area.
0:27:57 > 0:27:59The flat now has new electrics, plumbing,
0:27:59 > 0:28:01all the walls have been replastered
0:28:01 > 0:28:03and new windows have been fitted.
0:28:03 > 0:28:06And, of course, all the lads were entirely hands-on,
0:28:06 > 0:28:07as Daniel explains.
0:28:07 > 0:28:11We done most of the work ourselves, but we stuck to our trades.
0:28:11 > 0:28:13So, like, I've done most of the electrics,
0:28:13 > 0:28:16Paul's done most of the plastering, Conor's done a lot of the carpentry.
0:28:16 > 0:28:19We've crossed paths in certain things, but mainly not,
0:28:19 > 0:28:21which in some ways is a mistake.
0:28:21 > 0:28:24Paul was left to do a lot of the plastering on his own
0:28:24 > 0:28:25and it would've been faster
0:28:25 > 0:28:28if I'd have dropped what I was doing and helped him.
0:28:28 > 0:28:31We all should have, I think, taken more care to help each other out.
0:28:31 > 0:28:34It probably would've saved us time in the long run.
0:28:34 > 0:28:35# If you got a problem
0:28:35 > 0:28:37# Don't care what it is
0:28:37 > 0:28:39# If you need a hand
0:28:39 > 0:28:40# I can assure you of this
0:28:40 > 0:28:42# I can help
0:28:42 > 0:28:45# I got two strong arms
0:28:45 > 0:28:46# I can help
0:28:48 > 0:28:50# It would sure do me good
0:28:50 > 0:28:52# To do you good
0:28:52 > 0:28:54# Let me help... #
0:28:54 > 0:28:57Well, helping this case out of its lethargic state
0:28:57 > 0:28:59took the team eight weeks,
0:28:59 > 0:29:01and, fortunately, for such a radical overhaul,
0:29:01 > 0:29:04the trio didn't encounter any major problems,
0:29:04 > 0:29:06though, with those stairs,
0:29:06 > 0:29:09actually getting materials into the flat wasn't straightforward.
0:29:09 > 0:29:13Bringing things up, like radiators and doors, because of the narrow corridors,
0:29:13 > 0:29:16we didn't want to dink all the freshly plastered walls
0:29:16 > 0:29:18or the freshly decorated walls,
0:29:18 > 0:29:20so we'd carry them up with two people.
0:29:20 > 0:29:23And when we carried things up individually, we were very careful.
0:29:23 > 0:29:26Well, it must have kept the lads fit.
0:29:26 > 0:29:30Getting this place in shape for the resale market was the aim -
0:29:30 > 0:29:32hence, the top-quality finish.
0:29:32 > 0:29:34We went relatively higher-end.
0:29:34 > 0:29:37We just bought nicer skirting,
0:29:37 > 0:29:39nicer architrave,
0:29:39 > 0:29:42and high attention to the finish of the plaster.
0:29:42 > 0:29:45This property will be a great step onto the property ladder
0:29:45 > 0:29:48for a first-time buyer, but sorting out that 70-year lease
0:29:48 > 0:29:52would still be a key part in making this property saleable.
0:29:52 > 0:29:57And, fortunately, the freeholder was only too happy to oblige.
0:29:57 > 0:30:01We extended the lease from 75 years to 99 years.
0:30:01 > 0:30:03In the end, we had to pay him 16,000,
0:30:03 > 0:30:06which, at first, we were all kind of knocked for six by,
0:30:06 > 0:30:09but when we sat down and thought about it,
0:30:09 > 0:30:12and thought about the next project,
0:30:12 > 0:30:15and how much money you can make in, say, two years,
0:30:15 > 0:30:17we thought we could stomach it.
0:30:18 > 0:30:20The lads also knew that extending the lease
0:30:20 > 0:30:22would increase the value of the flat
0:30:22 > 0:30:25as well as making it attractive to buyers and mortgage lenders.
0:30:25 > 0:30:28And so, if that cost more than they anticipated,
0:30:28 > 0:30:32did their 15 grand budget also go through the ceiling?
0:30:32 > 0:30:36All told, we've had about 13,000, I think, on materials -
0:30:36 > 0:30:39including a plumber, a carpet and everything,
0:30:39 > 0:30:42and in terms of labour, we've only spent about 10,000.
0:30:42 > 0:30:45So we've paid ourselves a bit of a pittance,
0:30:45 > 0:30:47but we're hoping for a bigger pay-out at the end.
0:30:49 > 0:30:50I hope you're right.
0:30:50 > 0:30:54I think the lease was a smart move,
0:30:54 > 0:30:58but that £16,000 added to the 23 grand on renovation costs,
0:30:58 > 0:31:02and the purchase price of £101,000,
0:31:02 > 0:31:06brings their grand total invested in this top-floor flat to 140,000.
0:31:08 > 0:31:12Time for two local estate agents to cast their eye over the team's work.
0:31:13 > 0:31:15I think they've done a really good job here.
0:31:15 > 0:31:18It presents well, the layout works a lot better now, as well.
0:31:18 > 0:31:21The fact that they've changed the en-suite coming off the bedroom,
0:31:21 > 0:31:23the kitchen, which is open-plan now with the lounge area.
0:31:23 > 0:31:26Gives you a real good sense of space as you walk around.
0:31:26 > 0:31:27It works really well.
0:31:27 > 0:31:31It shows really well. Everything is a nice neutral colour.
0:31:31 > 0:31:33It is a good layout.
0:31:33 > 0:31:36Plenty of storage in that side and these cupboards.
0:31:36 > 0:31:39Even the bedroom is a good size, as well.
0:31:39 > 0:31:42The lads have achieved a top-notch finish here,
0:31:42 > 0:31:46but will they make a profit from their £140,000 outlay?
0:31:46 > 0:31:48The resale value of this property -
0:31:48 > 0:31:52I would expect to achieve in the region of £180,000.
0:31:52 > 0:31:55I would suggest to put it on the market at around £190,000
0:31:55 > 0:31:57to achieve anything from 180,000 upwards.
0:31:59 > 0:32:02Well, those valuations mean, before taxes and fees,
0:32:02 > 0:32:07the lads could make a potential profit of £40-£50,000.
0:32:07 > 0:32:09Yeah, it's great. It's a really good figure.
0:32:09 > 0:32:13- Very pleased with it.- Yes. It's a good figure. Happy with that.
0:32:13 > 0:32:15They are excited, honest!
0:32:15 > 0:32:17But will the rental returns make them think twice
0:32:17 > 0:32:19about selling the flat?
0:32:19 > 0:32:21If this property was on the rental market,
0:32:21 > 0:32:24I'd expect it to achieve £850 per month.
0:32:24 > 0:32:28Rentals, I'd probably suggest putting it on at £900pcm.
0:32:28 > 0:32:32Well, those for rental figures could mean a possible annual yield
0:32:32 > 0:32:35of around 7.5 percent.
0:32:35 > 0:32:36How does that sound?
0:32:36 > 0:32:39It's a good yield, but I think we are planning on selling it.
0:32:39 > 0:32:41The first few, anyway.
0:32:41 > 0:32:45Conor, Paul, and Daniel have certainly made a success
0:32:45 > 0:32:47of their first joint project,
0:32:47 > 0:32:50so a little celebration is in order.
0:32:50 > 0:32:53But, they're already planning to visit the auction room
0:32:53 > 0:32:54for another purchase!
0:32:54 > 0:32:57Though next time it definitely won't be another top floor flat!
0:32:57 > 0:33:01While this place wasn't their first choice for a renovation project,
0:33:01 > 0:33:04they know they've upgraded it to a new standard.
0:33:04 > 0:33:07As you know, this was the silver choice of flats
0:33:07 > 0:33:11that we looked at, originally, in the auction,
0:33:11 > 0:33:13but I'd say it's turned into gold.
0:33:13 > 0:33:14Yeah, definitely.
0:33:16 > 0:33:19Leaving the boys toasting their success,
0:33:19 > 0:33:23we head north to Bentilee, a housing estate in Stoke-on-Trent.
0:33:25 > 0:33:28Built in the 1950s, it was at one time,
0:33:28 > 0:33:31with 4,500 homes, one of the biggest estates in Europe.
0:33:31 > 0:33:37The area has undergone various regeneration schemes over the years,
0:33:37 > 0:33:40and nowadays has owner-occupiers as well as tenants.
0:33:40 > 0:33:44Right in the middle of the estate is the property I'm here to see.
0:33:44 > 0:33:47£55,000 plus was the guide price for this...
0:33:47 > 0:33:50A three-bedroomed semidetached.
0:33:50 > 0:33:52But forget about the house for a second,
0:33:52 > 0:33:57and just look at the size of the garden - it's enormous!
0:34:02 > 0:34:06I love a good solidly built ex-local authority house.
0:34:06 > 0:34:08I also love gardening,
0:34:08 > 0:34:10so a really big garden is very welcome.
0:34:10 > 0:34:13I'm thinking maybe a greenhouse,
0:34:13 > 0:34:15and every man needs a potting shed.
0:34:15 > 0:34:18It also has a farm gate.
0:34:18 > 0:34:21Oh, well, big garden, big gate.
0:34:25 > 0:34:27I can't get in through the front, so the back it is.
0:34:27 > 0:34:29Mm-hm... OK!
0:34:29 > 0:34:31LAUGHS
0:34:31 > 0:34:33Well, hopefully this isn't the kitchen.
0:34:33 > 0:34:35The useful downstairs loo.
0:34:35 > 0:34:38And I think, joking aside, that's a little utility area.
0:34:38 > 0:34:40And very useful, it is, too.
0:34:40 > 0:34:41This is the kitchen!
0:34:41 > 0:34:43Erm, interesting shape.
0:34:43 > 0:34:46Erm... It's not exactly bang up-to-date, is it?
0:34:46 > 0:34:49But, it's a nice-sized space
0:34:49 > 0:34:52and, you know, spend a bit money in here
0:34:52 > 0:34:54and, wow, what transformation.
0:34:54 > 0:34:56Pretty good.
0:34:56 > 0:34:58The kitchen isn't the only bit of the house
0:34:58 > 0:35:00to have an unusual layout.
0:35:00 > 0:35:03The hallway takes you past the stairs to the front door
0:35:03 > 0:35:05and living room to the right.
0:35:05 > 0:35:09I like it as it's a good size with an OK fireplace.
0:35:09 > 0:35:14The central heating radiators look reasonably new. So far, so good.
0:35:16 > 0:35:20So, is upstairs surprisingly spacious? Well, let's find out.
0:35:20 > 0:35:22A smallish bedroom there.
0:35:22 > 0:35:27Over this way to a half decent sized double bedroom.
0:35:27 > 0:35:33And this flooring doesn't really do the place justice.
0:35:33 > 0:35:37And actually, up here, it feels a bit sort of cramped.
0:35:37 > 0:35:40The bathroom there looks like it's had a bit of renovation work
0:35:40 > 0:35:42done on it. Only half finished.
0:35:42 > 0:35:47And through into the biggest of the bedrooms, the master bedroom.
0:35:47 > 0:35:50Slightly strange layout, partly because of this,
0:35:50 > 0:35:53which is just above the stairs there.
0:35:53 > 0:35:57It's almost lending towards possibly being some kind of en-suite.
0:35:57 > 0:36:01It's a good size, and again it just feels solid,
0:36:01 > 0:36:03so a lot of house for the money.
0:36:03 > 0:36:07Time to investigate that field out the front.
0:36:08 > 0:36:12Well, often another advantage with ex-local authority properties
0:36:12 > 0:36:14is that they come with big gardens.
0:36:14 > 0:36:17And as I said before, this one is no exception.
0:36:17 > 0:36:21It's absolutely huge. That might not necessarily be a good thing.
0:36:21 > 0:36:23Certainly, if you're renting this place out,
0:36:23 > 0:36:27tenants sometimes don't...
0:36:27 > 0:36:30look after the gardens of the properties they are renting.
0:36:30 > 0:36:32So what could you do? I mean...
0:36:32 > 0:36:35it's big enough almost to consider a building plot, perhaps?
0:36:35 > 0:36:39If you could get planning permission for putting another property here?
0:36:39 > 0:36:43Looking around this estate, I doubt you'd get away with that.
0:36:43 > 0:36:46Maybe the best you could hope for is a garage or workshop of some sort.
0:36:46 > 0:36:49But at least you've got the space to play with.
0:36:49 > 0:36:52Even if you weren't planning on keeping this as the most
0:36:52 > 0:36:55perfect lawn, there is a bit of maintenance involved.
0:36:55 > 0:36:58So think about how you would manage it and pay for it
0:36:58 > 0:36:59if you were renting.
0:36:59 > 0:37:03Perhaps you could throw a goat in with the property!
0:37:03 > 0:37:05But you'd need a permit.
0:37:05 > 0:37:08# Hit the wrong note, billy goat. #
0:37:08 > 0:37:11Let's see if a local estate agent thinks this property
0:37:11 > 0:37:14hits the RIGHT notes.
0:37:14 > 0:37:17First impressions of this property, it's a little unloved,
0:37:17 > 0:37:20as it's been rented out for a number of years.
0:37:20 > 0:37:23But the saving grace is the huge front garden.
0:37:23 > 0:37:26Gives the property a major plus.
0:37:26 > 0:37:30How much extra value does that huge garden out the front
0:37:30 > 0:37:31add to the property?
0:37:33 > 0:37:36A property of this nature of accommodation
0:37:36 > 0:37:43in this area currently values at around about the £75,000 mark.
0:37:43 > 0:37:48However, with that large front garden, you'd put this property,
0:37:48 > 0:37:51once renovated, on the market
0:37:51 > 0:37:54somewhere between £80,000 and £85,000.
0:37:54 > 0:37:58So, that could be an extra ten grand of value on the property.
0:37:58 > 0:38:01Not bad. But what about rental figures?
0:38:01 > 0:38:06The potential for rent on this property is very good.
0:38:06 > 0:38:09There is a demand for rental property on this development,
0:38:09 > 0:38:14and once renovated, you're looking at a figure in the region of £450
0:38:14 > 0:38:16per calendar month.
0:38:16 > 0:38:19Well, as you know if you watch the show a lot,
0:38:19 > 0:38:21I absolutely love ex-local authority properties.
0:38:21 > 0:38:26They're solidly built and provide a lot of accommodation for the money.
0:38:26 > 0:38:28And at that guide price, I think this one is a great one to go for.
0:38:28 > 0:38:32Let's see who agreed when it went under the hammer.
0:38:32 > 0:38:36Lot 44 - a three-bed semidetached house on a very large plot.
0:38:36 > 0:38:37Garden is a good size.
0:38:37 > 0:38:4050 to start me here?
0:38:40 > 0:38:4250 bid. Thank you. £50,000.
0:38:42 > 0:38:4452. At 52.
0:38:44 > 0:38:4654.
0:38:46 > 0:38:4756.
0:38:47 > 0:38:4958.
0:38:49 > 0:38:52At £58,000... At £58,000...
0:38:52 > 0:38:55I'll go in ones if it helps. It's at 58.
0:38:55 > 0:38:5859? 59,000. 60?
0:39:00 > 0:39:05At £59,000, then. The bid is in the middle. At £59,000. 60 anywhere else?
0:39:05 > 0:39:09New bidder in the middle as well. £60,000. At 60. 61?
0:39:11 > 0:39:16No. At £60,000 right in the middle. At £60,000. 61 anywhere else?
0:39:16 > 0:39:20If not, I'm selling it at 60 for the first time...
0:39:20 > 0:39:23£60,000 for the second time...
0:39:23 > 0:39:27Third and final time, £60,000...
0:39:27 > 0:39:29Your lot, sir. Well done.
0:39:29 > 0:39:33And that final bid of £60,000 was from Bassam.
0:39:33 > 0:39:36He bought the property on behalf of a friend, Mahmud,
0:39:36 > 0:39:39who is currently in Saudi Arabia.
0:39:39 > 0:39:43Bassam used to work for the NHS
0:39:43 > 0:39:47and is now a PhD student in Primary Care Science.
0:39:47 > 0:39:51So will he be able to care for this property's needs? Let's find out.
0:39:52 > 0:39:56- Bassam, great to meet you.- Nice to meet you, too.- Congratulations.
0:39:56 > 0:39:59- Thank you.- Tell me why you wanted to buy this place.
0:39:59 > 0:40:02- I want to rent it out, really.- Right.
0:40:02 > 0:40:06- What was it about this house that appealed?- Oh, it's the garden!
0:40:06 > 0:40:10- Right!- A really big front garden.- OK.
0:40:10 > 0:40:12And I think it's really brilliant.
0:40:12 > 0:40:18- Um, that's really the main selling point for the house for us.- Great.
0:40:18 > 0:40:22Normally, when people are renting out a property, a big garden
0:40:22 > 0:40:26can be a problem, because often tenants don't look after the garden.
0:40:26 > 0:40:28But because it's a front garden,
0:40:28 > 0:40:31I think we could in future make a garage there,
0:40:31 > 0:40:33which will increase the rent.
0:40:33 > 0:40:35Right, OK.
0:40:35 > 0:40:39That's a good, savvy thought from a first-time developer.
0:40:41 > 0:40:45The only property Bassam has worked on before is his own house,
0:40:45 > 0:40:48which is nearby. And this isn't a business deal for Bassam.
0:40:48 > 0:40:51He's only doing this as a favour to his friend.
0:40:52 > 0:40:54It's quite an undertaking.
0:40:54 > 0:40:59Not only is Bassam doing a PhD at university, but he has five children
0:40:59 > 0:41:03and is just about to start a new job teaching health care.
0:41:04 > 0:41:07So he's clearly a busy man with a plan.
0:41:07 > 0:41:09Initially, the property will be renovated for renting out
0:41:09 > 0:41:11on a six-month let.
0:41:13 > 0:41:16The plan is that then his friend Mahmud
0:41:16 > 0:41:18will come from Saudi Arabia for a visit next year
0:41:18 > 0:41:21and possibly stay in the property while he's here.
0:41:23 > 0:41:28So, Bassam is in charge of the work. What's he got planned?
0:41:28 > 0:41:31The back garden, the fence is falling and needs sorting out.
0:41:31 > 0:41:36From inside the house, as you have seen, it needs plastering,
0:41:36 > 0:41:37a lot of plastering.
0:41:37 > 0:41:42To be fair on the house, it's not really in an extremely bad state.
0:41:42 > 0:41:44It's OK.
0:41:44 > 0:41:47The flooring needs doing, the kitchen,
0:41:47 > 0:41:50- as you see, the cupboards and things like that.- Right.
0:41:50 > 0:41:53- But it's a solid house. Ex-local authority.- It is, yes.
0:41:53 > 0:41:57I think, you know, these houses are built by the council
0:41:57 > 0:42:00in the '50s and they are really solid and strong houses.
0:42:00 > 0:42:03That's one of the things I like about them.
0:42:03 > 0:42:05My house is two minutes up the road and it's exactly...
0:42:05 > 0:42:07- They're all exactly the same design. - Yeah?
0:42:07 > 0:42:11- That must be funny walking into this. "It's like my house!"- Exactly.
0:42:11 > 0:42:13What's the budget?
0:42:13 > 0:42:16- At the moment it's up to about 5,000.- OK.
0:42:16 > 0:42:20But we're not doing the garage outside at this point.
0:42:20 > 0:42:26It's just reverting the house and sorting out the garden.
0:42:26 > 0:42:30But we don't know if it's going to go a bit more or less.
0:42:30 > 0:42:33- It's our first project, so...- Right.
0:42:33 > 0:42:36- Bit of a learning experience. - Yeah, exactly.- What's the timescale?
0:42:36 > 0:42:38Just a couple of months.
0:42:38 > 0:42:43And then the idea is to rent it out and possibly move onto the next one.
0:42:43 > 0:42:46Yes, exactly. Rent it out.
0:42:46 > 0:42:51- We want to see, obviously, if we can sell it and get a good profit.- Oh!
0:42:51 > 0:42:55We might sell it and just get another property. So it depends.
0:42:55 > 0:42:57What offer would tempt you to sell?
0:42:57 > 0:43:02- Well, it depends on how much we're going to spend on it.- OK.
0:43:02 > 0:43:07But, yeah, I think if it's over 5,000 profit, yeah, we would.
0:43:07 > 0:43:10- Well, congratulations, anyway.- Thank you very much.- Good luck with it.
0:43:10 > 0:43:13- Look forward to seeing how you get on.- Thank you.
0:43:13 > 0:43:17So, Bassam attracted more by the garden than the house.
0:43:17 > 0:43:19I think his idea of building a garage is a good one.
0:43:19 > 0:43:21In terms of sorting out the house itself,
0:43:21 > 0:43:24that £5,000 budget is a little bit tight.
0:43:24 > 0:43:27How will he get from? Find out later in the show.
0:43:30 > 0:43:33Time waits for no man, that's for sure,
0:43:33 > 0:43:35but have out buyers lived up to their promises?
0:43:35 > 0:43:37Has the work being done or have there been delays
0:43:37 > 0:43:40and disasters along the way?
0:43:40 > 0:43:41Let's find out.
0:43:43 > 0:43:47Back now to Houghton-Le-Spring, in County Durham,
0:43:47 > 0:43:52where this three bed mid-terrace was snapped up for £40,000 by June,
0:43:52 > 0:43:56a seasoned property developer who also owns a wedding dress shop.
0:43:57 > 0:44:01She had a budget of £15,000, but as for the schedule,
0:44:01 > 0:44:04time was of the essence.
0:44:04 > 0:44:08- Obviously, work's been started. Was that you?- Yes.
0:44:08 > 0:44:14Yes, we came in and stripped it out, basically to see how bad it was
0:44:14 > 0:44:19so we can then get the guys in to get the work done that needed to be done.
0:44:19 > 0:44:23- So when did you complete?- Thursday. Got the lease on Friday.
0:44:23 > 0:44:26- And today is Tuesday.- Yes. HE LAUGHS
0:44:26 > 0:44:31- You don't hang about, do you?- Not really, no. Got the keys on Friday.
0:44:31 > 0:44:33The guys have worked all weekend.
0:44:33 > 0:44:39- Wow.- And cleared out several lorry-loads.- So what's the timescale?
0:44:39 > 0:44:41- About three months.- Three months.
0:44:41 > 0:44:43I thought you were going to say three WEEKS, actually!
0:44:43 > 0:44:46No, they're good, but they're not that fast.
0:44:46 > 0:44:50There was clearly plenty to do to get this one back up to scratch,
0:44:50 > 0:44:54but June was confident her trusted team of builders would pull it off.
0:44:54 > 0:44:58Four and a half months after our first visit,
0:44:58 > 0:45:00we're back to see if June,
0:45:00 > 0:45:03the property developer-cum-bridal boutique owner
0:45:03 > 0:45:06has the mother of all wardrobe malfunctions on her hands,
0:45:06 > 0:45:10or will the mid-terrace be ready to glide down the aisle?
0:45:38 > 0:45:39Wow. What a great transformation.
0:45:39 > 0:45:43June has obviously taken a lot of care with the finish here.
0:45:43 > 0:45:46All three bedrooms look bright and refreshed.
0:45:50 > 0:45:52And look at the outside space.
0:45:52 > 0:45:55Those French windows are a nice touch...
0:45:58 > 0:46:03..and the living space on the other side of them is light and airy.
0:46:03 > 0:46:06Probably the best part of the project is now
0:46:06 > 0:46:10when you look at what it was like when I originally got it
0:46:10 > 0:46:14and what it's like now and it's a lovely family home
0:46:14 > 0:46:16that anybody could come in
0:46:16 > 0:46:19and simply put their furniture into and live in it.
0:46:20 > 0:46:23Couldn't have put it better myself, June.
0:46:23 > 0:46:27But for this beautiful swan of a house to emerge,
0:46:27 > 0:46:30there must have been a fair amount of frantic paddling
0:46:30 > 0:46:32going on underneath the surface.
0:46:33 > 0:46:35It's been rewired, replumbed,
0:46:35 > 0:46:38new windows and external doors,
0:46:38 > 0:46:40a full damp course,
0:46:40 > 0:46:43all of the interior woodwork has been replaced,
0:46:43 > 0:46:45spindle staircase has gone in,
0:46:45 > 0:46:48new kitchen, new bathroom, new flooring,
0:46:48 > 0:46:50been fully redecorated.
0:46:50 > 0:46:53There's been a tremendous amount of work done.
0:46:55 > 0:46:58The open-plan living space downstairs looks great
0:46:58 > 0:47:02and the addition of French doors opening onto the back yard
0:47:02 > 0:47:03works a treat.
0:47:05 > 0:47:08So, originally, we were just going to replace the window,
0:47:08 > 0:47:10but then, once we started work,
0:47:10 > 0:47:12realised the dining room was quite dark.
0:47:12 > 0:47:15So, change of plan. Decided to put French doors in.
0:47:15 > 0:47:17Let's a lot more light into the room.
0:47:17 > 0:47:20Out here, we'll have a decking area.
0:47:20 > 0:47:22The wall will be rendered and painted.
0:47:22 > 0:47:26So, on a summer's night, it's somewhere nice to come out and sit.
0:47:27 > 0:47:30With some tidying up to do and a gate to go up,
0:47:30 > 0:47:33there is still work to do here.
0:47:33 > 0:47:35But the wettest winter on record is to blame
0:47:35 > 0:47:38for the slight overrun on the schedule.
0:47:38 > 0:47:40And before signing off on the work,
0:47:40 > 0:47:44June is preparing a snagging list for her builders.
0:47:44 > 0:47:47Got an excellent squad of builders.
0:47:48 > 0:47:52They all know exactly how the project needs to be.
0:47:52 > 0:47:54They all know their jobs. They do them.
0:47:54 > 0:47:58They know the standard that I insist upon and they deliver.
0:47:58 > 0:48:01# Stand and deliver. #
0:48:03 > 0:48:07The builders have certainly delivered, but for the life of me,
0:48:07 > 0:48:11I can't see how June has stood her ground on the money front.
0:48:11 > 0:48:16The budget originally was £15,000, with a £5,000 contingency.
0:48:16 > 0:48:19The contingency has been used,
0:48:19 > 0:48:22but I've managed to hang into it for the 20,000.
0:48:22 > 0:48:26That's been for many things that we hadn't budgeted for
0:48:26 > 0:48:28or change of plan.
0:48:28 > 0:48:33For example, the French windows, which was an extra idea.
0:48:33 > 0:48:37A £20,000 spend on top of her purchase price of 40,000
0:48:37 > 0:48:42brings June's total spend here to £60,000.
0:48:42 > 0:48:44We asked along two local estate agents
0:48:44 > 0:48:47to get their thoughts on the refurbished mid-terrace.
0:48:49 > 0:48:53It's a lovely property. It's been done to quite a high standard.
0:48:53 > 0:48:55It's got a nice, modern fitted kitchen
0:48:55 > 0:48:57and the bathroom's been done nicely.
0:48:57 > 0:49:00The bedrooms are good sizes upstairs.
0:49:00 > 0:49:04It's a lovely property. It has been done to a high standard.
0:49:04 > 0:49:07It's all modern throughout, the decor, which always helps
0:49:07 > 0:49:10when you're looking to resell or rent out properties.
0:49:10 > 0:49:13And what do they think the mid-terrace could fetch
0:49:13 > 0:49:15on the rental market?
0:49:15 > 0:49:18The rental valuation on this property I would estimate
0:49:18 > 0:49:21at £550 per calendar month.
0:49:21 > 0:49:23The rental valuation that I would put on this property
0:49:23 > 0:49:27would be £550 per calendar month.
0:49:27 > 0:49:30That's a lot more than I expected to get.
0:49:30 > 0:49:34I thought it would be between 475 and 500,
0:49:34 > 0:49:37so I'm very, very pleased with that one.
0:49:37 > 0:49:42Those rental valuations would give June a very healthy yield of 11%.
0:49:42 > 0:49:45But what about the resale market?
0:49:45 > 0:49:50The sale valuation on this property would be between £85-£89,000.
0:49:50 > 0:49:54I would value this property at £95-£100,000.
0:49:54 > 0:49:57I think one is probably slightly too low
0:49:57 > 0:49:59and the other one's slightly too high.
0:49:59 > 0:50:03In fairness, I would have looked at around about the 90,000 mark.
0:50:05 > 0:50:07June has really added value to this property,
0:50:07 > 0:50:10with a very high-quality finish.
0:50:10 > 0:50:13If you recall, the agent who saw this property before the work
0:50:13 > 0:50:16was carried out thought an extension might make
0:50:16 > 0:50:20this property's resale value around that same 90 grand,
0:50:20 > 0:50:24the same as June expects to get now.
0:50:24 > 0:50:28So, no extension, but still a possible profit of £30,000,
0:50:28 > 0:50:31minus all the usual taxes and expenses.
0:50:33 > 0:50:37What is June going to do with this mid-terrace?
0:50:37 > 0:50:40Initially, the property will go up for sale.
0:50:40 > 0:50:44It's in its best condition, so now is the time,
0:50:44 > 0:50:46if it's going to sell, for it to go.
0:50:46 > 0:50:51So, yes, the property will go up for sale, see what the market is like.
0:50:51 > 0:50:54If it sells, great. If it doesn't, then I'll rent it.
0:50:59 > 0:51:01From seasoned pro June,
0:51:01 > 0:51:04over to first-time developer Bassam
0:51:04 > 0:51:07who in Bentilee, Stoke-on-Trent,
0:51:07 > 0:51:11had bought this three-bedroom semidetached property
0:51:11 > 0:51:16for £60,000 which also boasts a huge front garden.
0:51:16 > 0:51:19Buying it and overseeing the work as a favour
0:51:19 > 0:51:20to a friend in Saudi Arabia,
0:51:20 > 0:51:24Bassam planned to renovate and let out the property.
0:51:24 > 0:51:29- What was it about this house that appealed?- Oh, it's the garden.
0:51:29 > 0:51:32- Right.- That really big front garden.- OK.
0:51:32 > 0:51:34And I think it's really brilliant.
0:51:34 > 0:51:37Normally, when people are renting out a property, a garden,
0:51:37 > 0:51:38a big garden can be a problem,
0:51:38 > 0:51:41cos often tenants don't look after the garden.
0:51:41 > 0:51:44It's good. Because it's a front garden, I think we could,
0:51:44 > 0:51:49in the future, make a garage there where it will increase the rent.
0:51:51 > 0:51:54This was Bassam's first venture into property renovation
0:51:54 > 0:51:57and although this was a solid property,
0:51:57 > 0:51:59he still had a lot of work to do
0:51:59 > 0:52:03with a relatively tight budget of just £5,000.
0:52:06 > 0:52:10We've returned five months later to see how he's done.
0:52:14 > 0:52:17The living room has been plastered and repainted
0:52:17 > 0:52:20and the flooring has also been improved in here.
0:52:26 > 0:52:29The kitchen, whilst not being replaced,
0:52:29 > 0:52:31has been cleaned up and painted...
0:52:33 > 0:52:36..as has the downstairs cloakroom and utility area.
0:52:39 > 0:52:40Moving upstairs...
0:52:43 > 0:52:46..the three bedrooms have also been newly plastered
0:52:46 > 0:52:47and given a fresh lick of paint.
0:52:57 > 0:52:59The freshening up continues in the bathroom
0:52:59 > 0:53:03and goes right through the house.
0:53:03 > 0:53:07The improvement in flooring is a particular plus point.
0:53:09 > 0:53:13Well, the floor here, we decided to change it.
0:53:13 > 0:53:19We had a carpet on the landing and the hallway with the stairs.
0:53:19 > 0:53:22We changed that flooring for the living room.
0:53:22 > 0:53:25The laminate upstairs was really in a good condition
0:53:25 > 0:53:28so we didn't really need to change it.
0:53:29 > 0:53:32Unfortunately, the big front garden is still in need of work.
0:53:34 > 0:53:37And not replacing the kitchen may count against him.
0:53:39 > 0:53:43But, as a full-time PhD student and a father of five, to boot,
0:53:43 > 0:53:48I think first-time renovator Bassam still gets an A for effort.
0:53:53 > 0:53:54The property is nearly finished
0:53:54 > 0:54:00and it feels really good to have the work nearly done.
0:54:00 > 0:54:02We've got a little bit more to do, unfortunately,
0:54:02 > 0:54:06but, yeah, it's nice to see that the work's been done.
0:54:06 > 0:54:10We hired a few people to do the work, like a plasterer,
0:54:10 > 0:54:13people to fit the floor, joiners.
0:54:13 > 0:54:17Some of the work which I felt people would maybe charge a lot to do it,
0:54:17 > 0:54:18I did it myself.
0:54:18 > 0:54:23Unfortunately, I didn't have enough time to do everything myself.
0:54:23 > 0:54:26But there were a few things, like fitting the doors, for example,
0:54:26 > 0:54:28the simple things I've done myself.
0:54:28 > 0:54:32It's actually taken Bassam four months
0:54:32 > 0:54:35instead of the estimated two to get to this point.
0:54:35 > 0:54:38So it hasn't all gone to plan.
0:54:38 > 0:54:43One of the issues we had is the central heating system, actually.
0:54:43 > 0:54:46I looked at the boiler and it looked fairly new,
0:54:46 > 0:54:49so I thought everything should be fine.
0:54:49 > 0:54:54But it wasn't working, and we found a lot of blocked pipes.
0:54:54 > 0:54:59Many of the pipes had to be changed, the old radiators had to be bled
0:54:59 > 0:55:03and cleaned and the whole system had to be bled and re-cleaned
0:55:03 > 0:55:07and we had to put different materials to clean that system
0:55:07 > 0:55:11and drain it, then another material for maintenance.
0:55:11 > 0:55:14But it's working now, so I'm glad.
0:55:14 > 0:55:16So am I, Bassam!
0:55:16 > 0:55:21How is that tight-sounding budget of £5,000 holding up now?
0:55:21 > 0:55:24Yeah, actually, we were within budget,
0:55:24 > 0:55:29simply because there was work I had to do myself.
0:55:29 > 0:55:32I've done a bit of shopping around, so I wasn't really going
0:55:32 > 0:55:38for the big name companies that would charge a lot of money.
0:55:38 > 0:55:44I've relied on some of the local people who do the work, and that
0:55:44 > 0:55:48was sufficient and good, and at the same time we got people working.
0:55:51 > 0:55:54There's no doubt about it, Bassam has worked very hard on
0:55:54 > 0:55:58this project, and I'm sure his friend will be very grateful.
0:55:58 > 0:56:02However, it is a fairly simple renovation.
0:56:02 > 0:56:05Will that have an impact on the evaluations?
0:56:05 > 0:56:09With a total spend of £65,000 here,
0:56:09 > 0:56:13we asked two local agents along to give us their opinion.
0:56:14 > 0:56:17The property has clearly had some refurbishment,
0:56:17 > 0:56:19but I wouldn't describe it as completed at the moment.
0:56:19 > 0:56:24What he has done is modernise the property to a decent standard.
0:56:24 > 0:56:28The property as it stands today would benefit from a new kitchen
0:56:28 > 0:56:29and a bit of refurbishment in that area.
0:56:29 > 0:56:32Because it is reasonably basic and it will appeal to people
0:56:32 > 0:56:34if the property is fully modernised.
0:56:34 > 0:56:37As I suspected.
0:56:37 > 0:56:41But as it stands, what potential sale price could Bassam achieve?
0:56:41 > 0:56:46I would place this property on the market for sale at £75,000.
0:56:46 > 0:56:52I would suggest an asking price in the sales market at £75,000.
0:56:52 > 0:56:56Meaning a pre-tax profit of a potential 10,000.
0:56:56 > 0:57:00But it's the rental market that Bassam is most interested in.
0:57:00 > 0:57:02In its current condition,
0:57:02 > 0:57:06the rental value would be around £395 per calendar month.
0:57:06 > 0:57:08However, if the property had a new kitchen,
0:57:08 > 0:57:11we'd anticipate receiving £450 per month.
0:57:11 > 0:57:16As the property stands, 395 per calendar month.
0:57:16 > 0:57:18If the kitchen was refitted,
0:57:18 > 0:57:23we'd be looking at figures around £450 per calendar month.
0:57:23 > 0:57:27Meaning that as it is, Bassam could expect a rental yield
0:57:27 > 0:57:29of around 7%.
0:57:29 > 0:57:32But if he chose to invest in a new kitchen,
0:57:32 > 0:57:34that would increase to around 8%.
0:57:36 > 0:57:39I think I've got a bit of thinking to do with what to do
0:57:39 > 0:57:44with the property now, with selling it or renting it out.
0:57:44 > 0:57:49But definitely I've got more to do with the house at the moment.
0:57:51 > 0:57:54So many different experiences buying at auction
0:57:54 > 0:57:56and we've got plenty more where those came from.
0:57:56 > 0:57:59Yes, make sure you join us next time for more Homes Under The Hammer.
0:57:59 > 0:58:01- See- you then. Bye.- Bye.