0:00:02 > 0:00:03Hello and welcome to the show.
0:00:03 > 0:00:06Over the years, Martin and I have met thousands of developers
0:00:06 > 0:00:10who have bought, sold and rented, all with various degrees of success.
0:00:10 > 0:00:12Yes, it's not easy.
0:00:12 > 0:00:15But get it right and it's a really rewarding
0:00:15 > 0:00:17and fulfilling world to be in.
0:00:17 > 0:00:20And somebody who knows all about it is Dion Dublin.
0:00:20 > 0:00:22- Hello, Dion.- Great to be here.
0:00:22 > 0:00:25As you know, property can be incredibly rewarding,
0:00:25 > 0:00:27but can hold some unexpected surprises.
0:00:27 > 0:00:30We've seen many of those on Homes Under The Hammer.
0:00:55 > 0:01:01Leaky roofs, dry rot, wet rot, plumbing issues, do I need to go on?
0:01:01 > 0:01:02You get the picture.
0:01:02 > 0:01:05Were there any surprises that sprung up on today's show?
0:01:05 > 0:01:09Well, let's find out. Here are the properties we are featuring.
0:01:09 > 0:01:13In Dartford, I can see straightaway what needs to be done
0:01:13 > 0:01:15in this '80s throwback semi.
0:01:15 > 0:01:18Knock this through, get rid of this.
0:01:19 > 0:01:21But in Llanelli, Wales,
0:01:21 > 0:01:24a pub and flat need rather more mulling over.
0:01:24 > 0:01:26You need to sit down in a darkened room
0:01:26 > 0:01:28and figure out what you're going to do with it.
0:01:29 > 0:01:32In Croydon, there was space in this semi,
0:01:32 > 0:01:36until someone tried to squeeze in an extra bedroom.
0:01:36 > 0:01:39This isn't quite what I was expecting upstairs.
0:01:40 > 0:01:43All these properties were bought at auction.
0:01:43 > 0:01:45We'll find out who got them and how much they paid
0:01:45 > 0:01:47when these homes went under the hammer.
0:01:47 > 0:01:49Sold, 180.
0:01:56 > 0:02:00With the M25 and Bluewater shopping centre on its doorstep,
0:02:00 > 0:02:02Dartford in Kent certainly ticks the boxes
0:02:02 > 0:02:05when it comes to transport links and shopping facilities.
0:02:05 > 0:02:10And the area is earmarked as one of the government's key growth zones
0:02:10 > 0:02:13in the Thames Gateway, with plans for 20,000 new homes
0:02:13 > 0:02:18and 50,000 new jobs to be created in the area over the next 25 years.
0:02:19 > 0:02:21And with it, it will bring in more people
0:02:21 > 0:02:25and the demand for family homes is likely to increase.
0:02:26 > 0:02:29The property I'm here to see could be just that -
0:02:29 > 0:02:32a lovely family home with good garden space.
0:02:32 > 0:02:37At a guide price of £215,000 plus, it's this three-bed semi.
0:02:37 > 0:02:40But before I go in, let me give you a quick stat.
0:02:40 > 0:02:44In the 1960s, properties like these were going for £2,800.
0:02:46 > 0:02:51As far as the price goes, things have certainly moved on from the 1960s.
0:02:51 > 0:02:53But some other aspects of the property
0:02:53 > 0:02:55haven't quite reached the 21st-century.
0:02:58 > 0:03:02Right, good-sized hallway. Nice and bright.
0:03:02 > 0:03:05And this banister, this is definitely an '80s-style banister.
0:03:05 > 0:03:08Had one of those back in Leicester when I lived at home.
0:03:08 > 0:03:12Nice and sturdy though, still in good condition.
0:03:12 > 0:03:15Through to here, the lounge/living room area,
0:03:15 > 0:03:19which seems to be a nice long, decent-sized space.
0:03:19 > 0:03:20Through to the kitchen.
0:03:20 > 0:03:23Needs an overhaul in here, again, that's a running theme
0:03:23 > 0:03:26from the banister through to here, same-coloured wood.
0:03:26 > 0:03:28'80s kitchen again, just needs a refurb.
0:03:28 > 0:03:32And possibly knock through and give yourself a kitchen/diner.
0:03:32 > 0:03:34You could even...
0:03:34 > 0:03:35Wait there.
0:03:36 > 0:03:39You could even put this wall back in
0:03:39 > 0:03:43to give yourself a separate lounge/living area with your TV here.
0:03:43 > 0:03:46And you could put a table and chairs in here. Knock this through,
0:03:46 > 0:03:49get rid of this, knock it through to a table and chairs,
0:03:49 > 0:03:51or even better still, you could put an island in
0:03:51 > 0:03:53which would give you your work surface space
0:03:53 > 0:03:56and somewhere you could have your breakfast as well.
0:03:56 > 0:03:58Two stools either side, Bob's your uncle,
0:03:58 > 0:04:01I can watch the football in here undisturbed.
0:04:01 > 0:04:04Yes, for once, I think this might actually benefit
0:04:04 > 0:04:05from dividing the room.
0:04:05 > 0:04:08You could put in a pair of glass-panelled doors to give you
0:04:08 > 0:04:11the option of dividing up the space when you want to watch the footie.
0:04:11 > 0:04:15And it would still keep a light and airy feel to the room.
0:04:15 > 0:04:18But I think turning the back lounge into a kitchen/diner
0:04:18 > 0:04:22is a definite. As is the upgrading of the kitchen.
0:04:22 > 0:04:23And the fireplace and its surround
0:04:23 > 0:04:26should probably follow the old kitchen out of the door.
0:04:27 > 0:04:30Right, you've got the running theme of the banister here,
0:04:30 > 0:04:31the '80s style banister.
0:04:31 > 0:04:35And look, an outwardly opening door, which is quite strange.
0:04:35 > 0:04:37That takes a bit of space on the landing.
0:04:37 > 0:04:41Bathroom, take it out and start again, and that will be fine.
0:04:42 > 0:04:47Three further bedrooms here. There's one here of a decent size.
0:04:47 > 0:04:50Another bedroom here, of a good size, that one.
0:04:50 > 0:04:54This is the smaller of the three, the box bedroom there.
0:04:54 > 0:04:57What I have noticed is three outwardly opening doors here
0:04:57 > 0:05:01onto the landing. That just takes up space, as I said before.
0:05:01 > 0:05:05I'd be inclined to get those opening inwards into the bedrooms,
0:05:05 > 0:05:07create a bit more light as well,
0:05:07 > 0:05:09but apart from the three doors, not a lot to do.
0:05:09 > 0:05:11This could be a lovely family home.
0:05:11 > 0:05:14# My door is open
0:05:15 > 0:05:18# My door is open... #
0:05:20 > 0:05:22This is a bit of a weird one.
0:05:22 > 0:05:25The doors opening out restrict space in the landing area.
0:05:25 > 0:05:27Anyway, it's not a big deal to fix.
0:05:29 > 0:05:31I've noticed there is central heating,
0:05:31 > 0:05:33though you'd need to check it.
0:05:33 > 0:05:36However, the windows look in good nick.
0:05:36 > 0:05:39So far, this is an '80s hit for me.
0:05:39 > 0:05:42So time to venture out the back door.
0:05:42 > 0:05:43Nice little garden here.
0:05:43 > 0:05:47You've also got a bit of decking there, table and chairs,
0:05:47 > 0:05:50nice cup of tea, perfect family garden.
0:05:53 > 0:05:55An afternoon with a mower, a wood sander
0:05:55 > 0:06:00and some wood preservative and you could bring a lot of this up to spec.
0:06:00 > 0:06:04And there's yet another door. It leads directly into the garage.
0:06:04 > 0:06:06And there's also a handy side gate.
0:06:06 > 0:06:10Although perhaps this house is a bit of a throwback to the '80s,
0:06:10 > 0:06:13I still think it's got a lot going for it.
0:06:17 > 0:06:20But what can a local estate agent tell us about the house
0:06:20 > 0:06:21and the area it's in?
0:06:23 > 0:06:27Geographically, we're a mile and a half from Dartford town centre
0:06:27 > 0:06:30and equally a mile and a half in the other direction towards Bluewater.
0:06:30 > 0:06:33There's a local store at the end of the road.
0:06:33 > 0:06:38The Darent Hospital, which is adjacent to the development,
0:06:38 > 0:06:39is only a stone's throw away.
0:06:39 > 0:06:43So personnel who work there find this particular locality popular.
0:06:43 > 0:06:46So, most of the things you'd want from a location.
0:06:46 > 0:06:49But does the property match its surroundings?
0:06:49 > 0:06:53The property is a typical standard, three-bedroom semi.
0:06:53 > 0:06:56In its present condition, it needs some modernisation.
0:06:56 > 0:07:00But it shouldn't take too much to bring it up to modern standards.
0:07:00 > 0:07:01Let's talk money.
0:07:01 > 0:07:05How would this house, that was guided at £215,000 plus,
0:07:05 > 0:07:06fare as an investment?
0:07:09 > 0:07:12If the property was refurbished, under the current climate,
0:07:12 > 0:07:17we'd probably achieve in the region of £270,000 for sales
0:07:17 > 0:07:21and around £1,100 per calendar month for rentals.
0:07:26 > 0:07:29So, potentially, this is a lovely three-bed family home.
0:07:29 > 0:07:32Bathroom and kitchen need to be changed.
0:07:32 > 0:07:35Those doors upstairs on the landing, for me, need to be put right.
0:07:35 > 0:07:38Let's see who wanted to turn this property around
0:07:38 > 0:07:40when it went under the hammer.
0:07:42 > 0:07:44A semi-detached freehold house.
0:07:44 > 0:07:46Start me, please, for this one at 180.
0:07:46 > 0:07:49Yes, 180. Thank you. 85?
0:07:49 > 0:07:53Yes, 85, thank you. 190?
0:07:53 > 0:07:56190. 195 here behind you.
0:07:56 > 0:07:58And 200 now. And five?
0:07:58 > 0:08:00205. 210?
0:08:00 > 0:08:03210. 215?
0:08:03 > 0:08:08210 I have here sitting down. Against you. First time at 210.
0:08:10 > 0:08:14Second time at 210. And a final time at 210. Are we all done?
0:08:14 > 0:08:16Not quite there for Dartford.
0:08:16 > 0:08:20And so the three-bed semi in Dartford didn't meet its reserve price.
0:08:21 > 0:08:24But after the auction, local man Mike did the deal,
0:08:24 > 0:08:28buying the house for the £215,000 guide price.
0:08:29 > 0:08:33I met Mike and sister-in-law Lucia back at the house to find out more.
0:08:33 > 0:08:36Mike and Lucia, congratulations first and foremost.
0:08:36 > 0:08:38But tell us about the auction.
0:08:38 > 0:08:42It didn't reach its reserve during the auction, so I had to contact
0:08:42 > 0:08:46the auctioneer afterwards and find out what the reserve price was.
0:08:46 > 0:08:49I made an offer and then I subsequently bought it
0:08:49 > 0:08:52on behalf of our company for £215,000.
0:08:52 > 0:08:55Mike, you mentioned a company, have you got a family business,
0:08:55 > 0:08:58- or is it on your own?- It's a family business with me, Paul and Lucia.
0:08:58 > 0:09:01- And Paul is? - Paul is Michael's brother.
0:09:01 > 0:09:04And then my eldest son Jamie works with us as well.
0:09:04 > 0:09:08Is it a property developing business, the family business, you've got?
0:09:08 > 0:09:10No, initially we started off doing windows,
0:09:10 > 0:09:13doing double glazing to property and stuff like that.
0:09:13 > 0:09:15Then we evolved. I come from a building background
0:09:15 > 0:09:18- where we do kitchens and bathrooms, voids and things like that...- OK.
0:09:18 > 0:09:20..for a local business.
0:09:20 > 0:09:23One of the good points of buying a property here is
0:09:23 > 0:09:25because we are literally around the corner.
0:09:25 > 0:09:26It's our intention to use
0:09:26 > 0:09:29some of our guys on an afternoon when they are quiet.
0:09:29 > 0:09:30So you can keep on top of what's going on,
0:09:30 > 0:09:33- keep on top of this property. - It's easy to pop round, one of us.
0:09:33 > 0:09:37Got you. So you can now get builders on this whenever you want them.
0:09:37 > 0:09:40Yes, we've got our own builders that work for us so we'll do it
0:09:40 > 0:09:43all ourselves and won't be employing anyone else outside of the company.
0:09:43 > 0:09:46Other than that, normal blokes and normal subcontractors.
0:09:46 > 0:09:50Mike and his brother Paul organise the work and the subcontractors,
0:09:50 > 0:09:54while Lucia sorts out the bookings and the payroll side of the business.
0:09:55 > 0:09:57With Mike's background as an electrician,
0:09:57 > 0:10:00builder brother Paul's window-fitting skills
0:10:00 > 0:10:03and Lucia keeping an eye on the budget and organising the goods,
0:10:03 > 0:10:07they look like they have the near-perfect team for property refurbishment.
0:10:09 > 0:10:12OK, let's talk the property. Let's talk about your budget.
0:10:12 > 0:10:16- Have you got timescales?- We haven't really got much of a timescale.
0:10:16 > 0:10:20Er... Some of the jobs blow out, don't they?
0:10:20 > 0:10:23- Yeah.- On a day-to-day basis, residents let us down.
0:10:23 > 0:10:26So the idea is to bring the blokes back here in the afternoon
0:10:26 > 0:10:29rather than send them home on full wages.
0:10:29 > 0:10:31You know, bring them back here and get them to do a bit of work.
0:10:31 > 0:10:34- No rest then. - No rest for the wicked.
0:10:34 > 0:10:36So, not a long time scale,
0:10:36 > 0:10:40but we should be able to turn it around pretty quick, say four weeks.
0:10:40 > 0:10:42OK. And your budget?
0:10:42 > 0:10:44Our budget is about £10,000 to do it up.
0:10:44 > 0:10:46We are doing a new kitchen, bathroom,
0:10:46 > 0:10:49new windows and strip it all out basically and refurbish it.
0:10:49 > 0:10:52Lucia, the kitchen, are you going to change it majorly?
0:10:52 > 0:10:54I had a look around and had my own ideas.
0:10:54 > 0:10:56I wonder if my ideas match your ideas.
0:10:56 > 0:10:59Well, we haven't actually discussed exactly what we are going to
0:10:59 > 0:11:01do with it, but obviously it is going to be major
0:11:01 > 0:11:03because the whole lot needs to come out.
0:11:03 > 0:11:05We're going to do away with the back door
0:11:05 > 0:11:08because you get more workspace, get more units in.
0:11:08 > 0:11:12You've got patio doors at the back to get out into the back garden.
0:11:12 > 0:11:14Then we're going to get some drawings done up,
0:11:14 > 0:11:17have it all ripped out, see what we're working with really.
0:11:17 > 0:11:21- So you're having a kitchen/diner, correct?- Yes, I think so.- I think so.
0:11:21 > 0:11:23So the family business, Lucia, is doors and windows.
0:11:23 > 0:11:26This should be a doddle for you, this house.
0:11:26 > 0:11:29Are you going to change them all or just tidy them up?
0:11:29 > 0:11:32No, definitely replace them all with UPVC.
0:11:32 > 0:11:34Will you transform this property
0:11:34 > 0:11:37and then look to sell it as soon as possible, or will you rent it?
0:11:37 > 0:11:41- What are your plans?- I think we'll sell it, that's the idea.
0:11:41 > 0:11:43- I think so.- I think we'll sell it.
0:11:43 > 0:11:46It's a small one, not a lot of work to be done to it.
0:11:46 > 0:11:49Just feeling the market, then, depending how this one goes,
0:11:49 > 0:11:51we might do a few more.
0:11:51 > 0:11:55And as first development projects go, this is near perfect,
0:11:55 > 0:11:59with no real structural work to do, just cosmetic changes.
0:12:00 > 0:12:03And if they manage this on that £10,000 budget,
0:12:03 > 0:12:09and make anything close to the £270,000 the estate agent suggested,
0:12:09 > 0:12:12they would have £45,000 profit
0:12:12 > 0:12:14to plough back into the business.
0:12:15 > 0:12:19I've been in family businesses before, sometimes they work,
0:12:19 > 0:12:21sometimes they don't. What's your dynamics like?
0:12:21 > 0:12:24I think we're open and honest about everything.
0:12:24 > 0:12:26We discuss everything, have regular meetings
0:12:26 > 0:12:28to discuss good points and bad points.
0:12:28 > 0:12:30Who's got the ideas for the house?
0:12:30 > 0:12:33Who said we'll do this or do that or have you chatted?
0:12:33 > 0:12:35I think it will be...
0:12:36 > 0:12:38See, the boss has spoken now!
0:12:38 > 0:12:42- It will be a joint decision. - It's normally a joint decision.
0:12:42 > 0:12:45There's Paul, Lucia and myself are the main directors,
0:12:45 > 0:12:46there's three of us,
0:12:46 > 0:12:50so we vote three ways. We say whether we like it.
0:12:50 > 0:12:54Sometimes them two try not to... sort of, er, join up with me
0:12:54 > 0:12:57cos they are husband-and-wife too many times.
0:12:57 > 0:13:00But Lucia supports me a lot of times with decisions,
0:13:00 > 0:13:01so it works quite well, really.
0:13:01 > 0:13:04And she's quite good being the backup sometimes.
0:13:04 > 0:13:06- The man in the middle. - Yeah, well, you know.
0:13:06 > 0:13:09The boss at the top, the three boys underneath. I understand that!
0:13:09 > 0:13:12Mike, Lucia, very nice to meet you. I wish you all the best
0:13:12 > 0:13:15and look forward to seeing how you get on in the future. Good luck.
0:13:15 > 0:13:18- Lovely, thank you very much.- Thank you, Dion.- Good luck.- Pleasure.
0:13:18 > 0:13:22Mike, Lucia and the family business seem to have this project
0:13:22 > 0:13:24completely under control.
0:13:24 > 0:13:27The dynamics of the family are working perfectly, which is
0:13:27 > 0:13:31really nice to see. But will the voting system work for them?
0:13:31 > 0:13:33You can find out later on in the programme.
0:13:41 > 0:13:45The town of Llanelli is just ten miles from Swansea.
0:13:45 > 0:13:47It was once known as Tinopolis
0:13:47 > 0:13:51because it was so important in the 19th-century tin industry.
0:13:51 > 0:13:54Nowadays, with lots of regeneration funding,
0:13:54 > 0:13:57it may be more of a goldmine for investors.
0:13:59 > 0:14:00So, what was up for auction?
0:14:00 > 0:14:03Well, relatively close to the town centre,
0:14:03 > 0:14:08a former bar with a three-bed maisonette above it.
0:14:08 > 0:14:11Guide price at £72,000 plus, let's take a look.
0:14:13 > 0:14:17So, let's start with the ground floor bar area.
0:14:17 > 0:14:19Really nice frontage,
0:14:19 > 0:14:22which is really important for attracting custom, obviously.
0:14:22 > 0:14:26And then into the sort of main bar area.
0:14:26 > 0:14:31Now, this was apparently, until very recently, operating.
0:14:31 > 0:14:35So it has that strange feel, slightly Marie Celeste-like.
0:14:35 > 0:14:39Where are all the customers? But as a space, I really like it.
0:14:39 > 0:14:40You've got this large area at the front,
0:14:40 > 0:14:42then, as you progress through,
0:14:42 > 0:14:45you've got the loos, an area at the back
0:14:45 > 0:14:47where there could be a pool table.
0:14:47 > 0:14:49And then, in the middle, this bar area.
0:14:49 > 0:14:52As a layout, it works really well. Good start.
0:14:52 > 0:14:58# But there's nothing so lonesome, so dull or so drear
0:14:58 > 0:15:03# Than to stand in the bar of a pub with no beer. #
0:15:03 > 0:15:06With no liquid refreshments being available here,
0:15:06 > 0:15:10I'm hoping the real trophy will be the upstairs flat.
0:15:10 > 0:15:12But things are not looking promising.
0:15:14 > 0:15:15# You may find me
0:15:15 > 0:15:20# Sneaking out the back door with a drink. #
0:15:26 > 0:15:28That is weird.
0:15:28 > 0:15:31Up the stairs - enclosed.
0:15:31 > 0:15:34Outside - to go into the flat.
0:15:44 > 0:15:49So it seems like that's not the only bit of strange design going on.
0:15:50 > 0:15:52Wo-o-ow!
0:15:52 > 0:15:55Wow! There's a lot of space.
0:15:55 > 0:15:58But you've got this sort of patio doors
0:15:58 > 0:16:02out onto that little balcony area there,
0:16:02 > 0:16:05a huge, great fire thing. This strange...
0:16:06 > 0:16:09Well, whatever it is. Then you go down this little corridor
0:16:09 > 0:16:12which winds round here to a bathroom that...
0:16:12 > 0:16:14Aaaah!
0:16:14 > 0:16:17Fantastic if you want to play chess or backgammon,
0:16:17 > 0:16:20but in terms of a peaceful bath, I'm not so sure.
0:16:20 > 0:16:24And then the property extends back this way.
0:16:24 > 0:16:26As you can see, it goes on and on and on.
0:16:26 > 0:16:29You are certainly getting a lot of space,
0:16:29 > 0:16:32and obviously the floor area matches what's downstairs.
0:16:32 > 0:16:36But it's fine as long as you need to sit down in a darkened room
0:16:36 > 0:16:40and figure out what you're going to do with it.
0:16:40 > 0:16:42# Isn't it weird?
0:16:42 > 0:16:45# Isn't it strange? #
0:16:45 > 0:16:48Not the most conventional layout.
0:16:48 > 0:16:50I think that's the best I can say.
0:16:50 > 0:16:52But you're not short of space
0:16:52 > 0:16:56because in addition to that bathroom and kitchen, you get three bedrooms.
0:16:57 > 0:17:00But because it follows the shape of downstairs,
0:17:00 > 0:17:04it does create a very weird layout.
0:17:04 > 0:17:08What does a local property expert think of this unique auction lot?
0:17:08 > 0:17:10It's an interesting property.
0:17:10 > 0:17:13I think, at the guide price that's at auction,
0:17:13 > 0:17:15it could be quite an interesting purchase.
0:17:15 > 0:17:19What I do like about it is that there's living accommodation
0:17:19 > 0:17:23on the first floor which can reduce the risk to an investor
0:17:23 > 0:17:25if they buy the whole building.
0:17:25 > 0:17:29So at least they can generate a steady income from the flat.
0:17:29 > 0:17:32Apart from the bar downstairs.
0:17:32 > 0:17:36I think the options are to change it into residential,
0:17:36 > 0:17:39but I would have thought, looking at the shape of the property
0:17:39 > 0:17:41and the cost of refurbishment,
0:17:41 > 0:17:43I'd probably keep it, on balance, as a bar.
0:17:43 > 0:17:47The living accommodation has got a difficult shape.
0:17:47 > 0:17:50But it does provide a lot of accommodation.
0:17:52 > 0:17:56What about values? Could you sell the flat and bar separately?
0:17:56 > 0:18:00And what sort of rentals, commercial and residential, could you attract?
0:18:00 > 0:18:05For the flat, around £425 per calendar month.
0:18:05 > 0:18:10And for the bar itself, I would say around £12,000 per annum.
0:18:10 > 0:18:13It would be difficult to sell the flat separately.
0:18:13 > 0:18:16Many, or all of the mainstream lenders, in my knowledge,
0:18:16 > 0:18:20will not lend high amounts on residential accommodation
0:18:20 > 0:18:22over bars and public houses.
0:18:22 > 0:18:25So it would be much better to sell it as one unit.
0:18:25 > 0:18:29I'd have thought you'd be looking at a value of about £125,000.
0:18:29 > 0:18:34Well, it's an auction lot with lots of potential, isn't it?
0:18:34 > 0:18:37And what will happen - who knows? Will the bar remain as such?
0:18:37 > 0:18:39Will it be converted into flats?
0:18:39 > 0:18:43It all depends who bought it when it went under the hammer.
0:18:44 > 0:18:47Lot number 21, guided at £72,000.
0:18:47 > 0:18:50Will you start me, somebody? 70, somebody?
0:18:50 > 0:18:55£70,000, can we see? Make it 65, if you like. Thank you, at 65.
0:18:55 > 0:18:58And six and can I see from somebody? I've got 65. 66.
0:18:58 > 0:19:0267. 68. 69?
0:19:02 > 0:19:0769. And 70. 71. And two. 72. 73.
0:19:07 > 0:19:1074. 75. 76?
0:19:10 > 0:19:1276, no. Are you sure?
0:19:12 > 0:19:1575 on my right-hand side. At 75, with you.
0:19:15 > 0:19:18On my right, for the first time.
0:19:18 > 0:19:22Second time. 76. 77? 77. 78?
0:19:22 > 0:19:2579. And 80.
0:19:25 > 0:19:2881. 82.
0:19:28 > 0:19:3183. 84. 85.
0:19:31 > 0:19:3486. 87. No.
0:19:34 > 0:19:36At £86,000 on my left. You are now out.
0:19:36 > 0:19:40At £86,000 here then, for the first time. Second time.
0:19:40 > 0:19:43Third. £87,000.
0:19:43 > 0:19:4488.
0:19:44 > 0:19:48No. At £87,000. The killer blow. At 87,000. Are you sure?
0:19:48 > 0:19:5087 then, for the first time.
0:19:50 > 0:19:54Second time, third and last time, £87,000.
0:19:54 > 0:19:56Yours, sir. Your number, please?
0:19:56 > 0:20:00# It came like a killer blow
0:20:00 > 0:20:02# Killer blow... #
0:20:02 > 0:20:05That killer blow came from Wesley.
0:20:05 > 0:20:09His successful bid of £87,000 knocked out the competition.
0:20:09 > 0:20:14He came along with his cousin Kenny to tell me about their plans.
0:20:14 > 0:20:18- Wesley, Kenny, good to meet you both.- And you.- Congratulations.
0:20:18 > 0:20:21Tell me why you wanted to buy this place.
0:20:21 > 0:20:24- Investment, really.- Investment how?
0:20:24 > 0:20:27Rent upstairs really and the pub downstairs.
0:20:27 > 0:20:28- That's the plan, is it?- Yeah.
0:20:28 > 0:20:32I think what Wesley... Originally where he came from,
0:20:32 > 0:20:34going back about 12 months ago,
0:20:34 > 0:20:37Wesley purchased another property, which was a pub.
0:20:37 > 0:20:41- I think he's got a bit of a bug really for the pub trade.- Right.
0:20:41 > 0:20:46So I'm here today to really help him along and show him which way to go
0:20:46 > 0:20:49because my background is entertainment.
0:20:49 > 0:20:51Have you still got the old...the other pub?
0:20:51 > 0:20:54- Has that gone all right?- Yes. - Making some money?
0:20:55 > 0:20:59- Trying.- Trying.- As I said, he's got the bug, he's making money now,
0:20:59 > 0:21:01- so he wants to...- Yeah, it's one of those things that seems
0:21:01 > 0:21:05glamorous when you first look at it, the idea of owning a pub,
0:21:05 > 0:21:09but I know there's a lot of hard work involved as well, isn't there?
0:21:09 > 0:21:14- You've obviously not been put off. - Give it a go.- Give it a go.
0:21:14 > 0:21:19What was it that attracted you both to this particular outlet,
0:21:19 > 0:21:20if you like?
0:21:20 > 0:21:24I think we knew... Wesley knows this pub very, very well.
0:21:24 > 0:21:29- Did you used to drink here?- Yes. - Did you? Oh, wow.- We both did.
0:21:29 > 0:21:30Did you?
0:21:30 > 0:21:34And I think he could see how good the pub was in its heyday,
0:21:34 > 0:21:38as I said before, but I think, as I said, he's got the bug
0:21:38 > 0:21:44because the pub he took over about 12 months ago has taken off really well.
0:21:44 > 0:21:45Great.
0:21:45 > 0:21:49- So, how did you make it successful? - A bit of hard work, really.
0:21:49 > 0:21:51It's got to be more than that.
0:21:51 > 0:21:54You've got to get the right feeling inside, interior design.
0:21:54 > 0:21:56- A bit of help from Kenny.- Really?
0:21:58 > 0:22:03Wesley is a landscape gardener, so having help from his cousin Kenny
0:22:03 > 0:22:07has been handy in creating a success of the first pub.
0:22:07 > 0:22:11And he did mention he'd been in entertainment. Doing what, I wonder.
0:22:14 > 0:22:19- Singing.- Oh, really?- A bit of comedy. - Great.- But semi-retired now.
0:22:19 > 0:22:22So Wesley asked me
0:22:22 > 0:22:25if I'd give him a hand and give him some advice on what to do.
0:22:25 > 0:22:28Right, so what advice did you give?
0:22:28 > 0:22:31Basically, the same advice I'm going to give him here really.
0:22:31 > 0:22:36Get the people that used to call you back, so we can get the trade going.
0:22:36 > 0:22:39It's a wet-trade pub, it's not... No food or anything.
0:22:39 > 0:22:42It really is a good drinker's pub, if you understand what I mean.
0:22:42 > 0:22:48This part of Llanelli is... It's a nice part, closer towards the town.
0:22:48 > 0:22:51And what kind of interior design are you going to go for?
0:22:51 > 0:22:53Well, this pub, as you can see if you look around,
0:22:53 > 0:22:57there's a lot of local... Above is now is the old rugby clubs.
0:22:57 > 0:22:59- Yes.- Which Wales is famous for.
0:22:59 > 0:23:03So we are going to keep that sort of...the sporty type of thing.
0:23:03 > 0:23:06But we've got some ideas I'm putting past Wesley, you know,
0:23:06 > 0:23:09making it more of a music venue.
0:23:09 > 0:23:11- Oh, OK.- Get some memorabilia.
0:23:11 > 0:23:15And, believe it or not, I know we're a bit behind the times here in Llanelli,
0:23:15 > 0:23:17- but karaoke is still big.- Is it?
0:23:17 > 0:23:21Everybody thinks they can sing in Wales, so, you know...
0:23:21 > 0:23:23# I'll be a karaoke queen
0:23:23 > 0:23:24# It's not me you see
0:23:24 > 0:23:31# I'm gonna take you down to a place I know you'd rather be... #
0:23:33 > 0:23:36Sounds like karaoke will hit the right note here.
0:23:36 > 0:23:39But I think the pub isn't really the problem,
0:23:39 > 0:23:43it's that upstairs flat and its very unusual layout.
0:23:44 > 0:23:49A general tidy-up up there and get it all back to as it used to be,
0:23:49 > 0:23:52- I suppose.- The layout is a bit strange, isn't it?
0:23:52 > 0:23:53Yes, it's very long.
0:23:53 > 0:23:56Plans to change the interior layout at all?
0:23:56 > 0:23:59No, I'll just put it back as it was, really, and rent it out.
0:24:01 > 0:24:03Wesley will be doing a lot of the work himself,
0:24:03 > 0:24:06but has lots of friends in the building trade,
0:24:06 > 0:24:11so his one-month timescale and his £5,000-£7,000 budget
0:24:11 > 0:24:15for both flat and pub might just be achievable.
0:24:15 > 0:24:19- So, pulling first pint in a month? - Yeah. Less than that.
0:24:19 > 0:24:22- Less than that, really? - Yeah.- Fantastic.
0:24:22 > 0:24:25Big opening night, are you going to be playing, do you think?
0:24:25 > 0:24:29- Maybe, we'll see.- Come on!- It depends how much they're going to pay me.
0:24:29 > 0:24:31If I know Wesley, I will be.
0:24:31 > 0:24:32And for free!
0:24:32 > 0:24:36- Well, congratulations, good luck with it.- Yeah.
0:24:36 > 0:24:39- Look forward to seeing how you get on.- Thank you.
0:24:41 > 0:24:44So, Wesley keeping things simple, but even so,
0:24:44 > 0:24:48can he really sort out the flat and this bar in just one month?
0:24:48 > 0:24:50Will it be that amount of time
0:24:50 > 0:24:53before there's pints being pulled here
0:24:53 > 0:24:56and maybe Kenny singing on the opening night?
0:24:56 > 0:24:59You can find out later in the show.
0:25:00 > 0:25:04Coming up, in Croydon it's the same old song
0:25:04 > 0:25:06about a downstairs bathroom.
0:25:06 > 0:25:10Again, it's the big, old question - do we want to move that upstairs?
0:25:12 > 0:25:13And in the land of song,
0:25:13 > 0:25:17have Wesley and Kenny boosted the Llanelli's nightlife?
0:25:17 > 0:25:20It just needed refreshing, and he's done a great job on it.
0:25:25 > 0:25:28Back now to Dartford in Kent and is this three-bed semi
0:25:28 > 0:25:33which Mike and Lucia bought post-auction for £215,000.
0:25:33 > 0:25:36Lucia is married to Mike's brother Paul and the three of them
0:25:36 > 0:25:39work together in the family business installing windows and doors.
0:25:39 > 0:25:42They bought the semi through the company
0:25:42 > 0:25:45as a way to keep their team of guys busy between jobs.
0:25:45 > 0:25:48But it wasn't clear who would have the final say on things.
0:25:48 > 0:25:51Who's got the ideas for the house?
0:25:51 > 0:25:53Who says we'll do this or do that, if you chatted?
0:25:53 > 0:25:56I think it will be...
0:25:56 > 0:25:58I see, the boss has spoken now.
0:25:58 > 0:26:02- It will be a joint decision. - It's normally a joint decision.
0:26:02 > 0:26:06There's Paul, Lucia and myself are the main directors,
0:26:06 > 0:26:09there are three of us, so we vote three ways.
0:26:09 > 0:26:11- Say whether we like it.- That's good.
0:26:11 > 0:26:13So, them two try not to join up on me
0:26:13 > 0:26:17because they are husband and wife too many times.
0:26:17 > 0:26:19Actually, Lucia supports me a lot of times
0:26:19 > 0:26:22with decisions as well, so it works quite well, really.
0:26:22 > 0:26:25The semi was in need of a complete overhaul,
0:26:25 > 0:26:27and Mike and Lucia thought they might spend six weeks
0:26:27 > 0:26:30and £10,000 on the renovation.
0:26:30 > 0:26:34Five months after our first visit, Mike and Lucia are back
0:26:34 > 0:26:36to show us how the decision process has gone.
0:26:36 > 0:26:38# You've got to speed it up
0:26:38 > 0:26:41# And then you got to slow it down
0:26:41 > 0:26:45# Cos if you believe that a love can hit the top
0:26:45 > 0:26:47# You've got to play around
0:26:47 > 0:26:49# And soon you will find that there comes a time
0:26:49 > 0:26:51# For making your mind up... #
0:26:51 > 0:26:55Good job, guys, it looks like a completely different house.
0:26:55 > 0:26:58Sure, there's still the back garden to finish off,
0:26:58 > 0:27:01but the rest of the place is looking spick and span.
0:27:02 > 0:27:07We've rewired it, replumbed it, central heating, new bathroom,
0:27:07 > 0:27:10- new kitchen. - New carpets all the way through.
0:27:10 > 0:27:13We've done some changes to the garden. Took down the garden shed.
0:27:13 > 0:27:16We'll put the grass down, but it's the wrong time of year.
0:27:18 > 0:27:21I'm very glad to see they've rejigged the layout downstairs.
0:27:21 > 0:27:23I reckon it works a treat now.
0:27:24 > 0:27:27Well, if you remember, it was quite dated in here.
0:27:27 > 0:27:30There was a big serving hatch here
0:27:30 > 0:27:32and we decided to take it all away,
0:27:32 > 0:27:35block the kitchen and the dining room off,
0:27:35 > 0:27:37so it's a nice kitchen/diner.
0:27:37 > 0:27:38There was an old patio door,
0:27:38 > 0:27:42so we removed that, put some nice French doors in,
0:27:42 > 0:27:44thought it would open it up and make it a bit brighter.
0:27:44 > 0:27:47We've had to have a new boiler fitted.
0:27:47 > 0:27:50Also, I don't know if you remember, we had a back door.
0:27:50 > 0:27:53We've actually utilised that to block it off,
0:27:53 > 0:27:58put a fridge-freezer in, so it gives you a bit more of a nicer kitchen.
0:27:58 > 0:28:01I like the layout, I like the look.
0:28:01 > 0:28:03I'm really pleased with it, you know.
0:28:05 > 0:28:08The other benefit of the new partition wall
0:28:08 > 0:28:10is the large second lounge.
0:28:10 > 0:28:12We changed the lounge completely.
0:28:12 > 0:28:14Obviously it was a through lounge,
0:28:14 > 0:28:16so we put the wall up to divide the kitchen,
0:28:16 > 0:28:19took out the hideous fireplace that was here
0:28:19 > 0:28:22and as part of the rewire we put in some new downlighters.
0:28:22 > 0:28:25New windows, new timber flooring.
0:28:25 > 0:28:28And brighten the place up, so I'm quite pleased with it really.
0:28:28 > 0:28:31I was a little bit unsure if the front room would be big enough,
0:28:31 > 0:28:33but there's plenty of room.
0:28:34 > 0:28:38So, how has the family dynamic worked out during the project,
0:28:38 > 0:28:41with Mike, his brother Paul and sister-in-law Lucia?
0:28:41 > 0:28:44I can't answer that on telly.
0:28:44 > 0:28:47- No, no.- No, it's gone quite smoothly.
0:28:47 > 0:28:50- We are quite... - Yes, we are very close,
0:28:50 > 0:28:53we sort of trust each other implicitly
0:28:53 > 0:28:58because we are family, you know, so we're very close, so it's gone well.
0:29:00 > 0:29:03The guys were delayed in starting here due to a heavy workload
0:29:03 > 0:29:06in their main business of installing windows and doors.
0:29:06 > 0:29:08But once they did get stuck in, the work,
0:29:08 > 0:29:12apart from finishing the garden, was completed in about ten weeks.
0:29:12 > 0:29:15But what about that £10,000 budget?
0:29:15 > 0:29:19Unexpected rewiring, you know, central heating, plumbing,
0:29:19 > 0:29:23replumbing, new windows, obviously new kitchen and bathroom,
0:29:23 > 0:29:25we've actually gone over budget.
0:29:26 > 0:29:29Oh, dear! How much over?
0:29:29 > 0:29:32I don't know how far, you can spend a lot on the garden if you want to,
0:29:32 > 0:29:37so somewhere between 25,000, maybe 30,000 maximum.
0:29:39 > 0:29:43A renovation cost of £30,000 on top of a purchase price
0:29:43 > 0:29:46of £215,000 would bring their total spend here
0:29:46 > 0:29:49to £245,000.
0:29:49 > 0:29:52We asked along two local property experts
0:29:52 > 0:29:54to get their thoughts on the renovated semi.
0:29:54 > 0:29:57I feel that the layout is particularly good,
0:29:57 > 0:29:59with the kitchen open to the back room,
0:29:59 > 0:30:02so they have a kitchen/diner rather than separate galley kitchen,
0:30:02 > 0:30:04which a lot of these houses are nowadays.
0:30:04 > 0:30:06Personally, I'm more of an open-plan person.
0:30:06 > 0:30:10I would like it all to be knocked through if I had an option.
0:30:10 > 0:30:12But the way they've done it, they've separated it,
0:30:12 > 0:30:14so if anybody has children, for instance,
0:30:14 > 0:30:16it's going to be a perfect setup for them.
0:30:16 > 0:30:19And what do they think the renovated property
0:30:19 > 0:30:21would fetch on the rental market?
0:30:21 > 0:30:23The rental value, I feel, on this
0:30:23 > 0:30:27would be between £1,100 and £1,200 per calendar month.
0:30:27 > 0:30:30The rental value, £1,200 per calendar month.
0:30:30 > 0:30:35Those rental valuations would bring in a yield of 5%-6%.
0:30:35 > 0:30:38What about the resale market?
0:30:38 > 0:30:42I would be suggesting an asking price in the region of £280,000,
0:30:42 > 0:30:48with the expectation of selling in the region of £275,000.
0:30:48 > 0:30:50I would value this property at £260,000.
0:30:52 > 0:30:55Those resale valuations would give a profit before tax and expenses
0:30:55 > 0:30:58of between £15,000-£30,000.
0:30:58 > 0:31:02They were unsure before whether they'd sell or rent the semi.
0:31:02 > 0:31:04Are things any clearer now?
0:31:04 > 0:31:08- I don't know. - We were thinking of selling.
0:31:08 > 0:31:12- We were thinking of selling, yeah. - And then going after another one.
0:31:12 > 0:31:13Yeah.
0:31:13 > 0:31:17So it looks like the decision to go from installing windows and doors
0:31:17 > 0:31:21to doing full-scale renovations was a good one for these guys.
0:31:21 > 0:31:22I'm certainly glad we bought it.
0:31:22 > 0:31:25It was lucky it was just around the corner from our office,
0:31:25 > 0:31:27so it's been a good one to start on because we can just
0:31:27 > 0:31:30walk around the corner and see how things were going with it.
0:31:30 > 0:31:33- Rightly or wrongly, so to speak, but...- Yes, definitely.
0:31:33 > 0:31:35I feel the same.
0:31:35 > 0:31:38I'm pleased that we bought it and it's gone how we wanted it to.
0:31:38 > 0:31:41- So, yeah, very happy.- Very good.
0:31:44 > 0:31:48# Oh, baby, won't you come back home to Croydon
0:31:48 > 0:31:51# Where everybody feels at home... #
0:31:53 > 0:31:55Croydon in South London is a boom town,
0:31:55 > 0:31:58already a major area for business and shopping.
0:31:59 > 0:32:03The tramline to central London means it's popular with commuters
0:32:03 > 0:32:07and those who want to be part of its major regeneration.
0:32:07 > 0:32:09But all that comes at a price.
0:32:11 > 0:32:15In the past year, it's been reported that the average price
0:32:15 > 0:32:21of a first-time buyer property in London costs over £306,000.
0:32:21 > 0:32:25Now, to me, that makes it sound very difficult to get on the ladder
0:32:25 > 0:32:27for the first time in the capital.
0:32:27 > 0:32:30But I might just have the solution.
0:32:30 > 0:32:34The property I'm here to see had a guide price of £190,000,
0:32:34 > 0:32:37and for that, you get this.
0:32:37 > 0:32:42Yes, the whole three-bed house and not just a pokey little flat.
0:32:42 > 0:32:44With all the changes going on in Croydon at the moment,
0:32:44 > 0:32:48I don't think guide prices like this will be around for too long.
0:32:48 > 0:32:50Straight in, easy option. Whoopsie!
0:32:50 > 0:32:52So, here we are in the lounge.
0:32:52 > 0:32:56First things first, what do I feel about that? Go on, have a look.
0:32:56 > 0:32:58Don't like it.
0:32:58 > 0:33:00Gosh, that would take your fingers off if you were to touch it.
0:33:00 > 0:33:02And it's everywhere.
0:33:02 > 0:33:05So, as you can see, a lot of renovation work to do.
0:33:05 > 0:33:06But a good space.
0:33:06 > 0:33:10And you've got the stairs right in the middle of the two areas.
0:33:10 > 0:33:12Now, I've seen this, where the stairs have been turned around
0:33:12 > 0:33:15and lined up against this wall here, which can work
0:33:15 > 0:33:18because then it really does stop the separation.
0:33:18 > 0:33:20You've got one big room.
0:33:20 > 0:33:22But I suppose it depends on how you want to live.
0:33:22 > 0:33:24Second reception area here.
0:33:24 > 0:33:28Old gas fire, you have got gas central heating in here as well,
0:33:28 > 0:33:32which is good. You've got access there which leads out to the garden,
0:33:32 > 0:33:34so, nice to have an access point.
0:33:34 > 0:33:37And a long sort of galley kitchen at the back
0:33:37 > 0:33:41with a disappointing downstairs bathroom.
0:33:41 > 0:33:43So you'd need to do a bit of tweaking.
0:33:43 > 0:33:45It certainly needs upgrading.
0:33:45 > 0:33:47Again, it's the big old question -
0:33:47 > 0:33:51do we want to move that bathroom that's down here upstairs?
0:33:51 > 0:33:52I'm going to investigate.
0:33:53 > 0:33:58# Honey, put me where you want me and I won't bother you no more... #
0:34:01 > 0:34:04Now, this isn't quite what I was expecting upstairs.
0:34:04 > 0:34:06Lots of rooms, lots of different areas,
0:34:06 > 0:34:10so you've got one little bedroom here, with a rather peculiar shape,
0:34:10 > 0:34:13it's sort of a boxy area in the corner which needs to go.
0:34:13 > 0:34:16Very narrow corridor, you've got the chimney breast here,
0:34:16 > 0:34:21squeezing around here to a second room which is even smaller.
0:34:21 > 0:34:25Again, a little cupboard in the corner which needs to go.
0:34:25 > 0:34:29I think the way to get round this would be to...open that up.
0:34:29 > 0:34:31You can put a wall across here,
0:34:31 > 0:34:34so you'd have a much better space in that room.
0:34:34 > 0:34:37And do we want to move the bathroom up here?
0:34:37 > 0:34:39I think, if you do these little tweaks,
0:34:39 > 0:34:42you would have three not bad sized bedrooms.
0:34:42 > 0:34:45And I think that is potentially the way to go.
0:34:45 > 0:34:49So I'd make those changes and leave the bathroom downstairs.
0:34:49 > 0:34:52The larger bedroom at the end of the hall is a decent size.
0:34:52 > 0:34:55I reckon this house might have been a two-bedder at one time,
0:34:55 > 0:34:59but someone has tried to make it three. I approve of the idea,
0:34:59 > 0:35:02but the layout they chose isn't working for me.
0:35:02 > 0:35:07And there is some really worrying damp. The roof might need a check.
0:35:07 > 0:35:10And it looks like a rewire could be on the cards, too.
0:35:10 > 0:35:13Factor in possibly moving the bathroom and the stairs
0:35:13 > 0:35:17as well as the upstairs rejig, well, the cost is beginning
0:35:17 > 0:35:22to make that guide price of £190,000 look a bit realistic.
0:35:22 > 0:35:24A really good point though is the garden.
0:35:24 > 0:35:27Any outside space in London is prized.
0:35:27 > 0:35:31But barbecue time in Britain is limited, as we know,
0:35:31 > 0:35:34so it's the inside we need to focus on.
0:35:34 > 0:35:38Now, does a local agent think it's worth rejigging that bathroom?
0:35:40 > 0:35:44By moving the downstairs bathroom upstairs, you lose a bedroom.
0:35:44 > 0:35:48So it depends on what the new owner would like to do, whether they are
0:35:48 > 0:35:52pitching towards first-time buyers or if they want to rent it.
0:35:52 > 0:35:53And the two are very different.
0:35:53 > 0:35:57For resale, you'd move the bathroom upstairs to increase the value.
0:35:57 > 0:35:59If you wanted to rent the property, I think
0:35:59 > 0:36:01leaving the bathroom where it is would be fine.
0:36:01 > 0:36:05Good advice, and it shows that with a bit of research you can
0:36:05 > 0:36:09find your target market and develop the property accordingly.
0:36:09 > 0:36:12With lots of regeneration in this area, could this be a good investment?
0:36:12 > 0:36:16And what would it be worth for resale and rental?
0:36:17 > 0:36:20House prices, we've already seen that they have been increasing
0:36:20 > 0:36:24over the last few years, and I think they'll continue to do so.
0:36:24 > 0:36:29Maybe up to 40%, maybe 50% in the next five or six years.
0:36:29 > 0:36:32Once renovated, if the upstairs layout was slightly changed,
0:36:32 > 0:36:37this property would resell for approximately £295,000-£305,000.
0:36:37 > 0:36:39This property would rent
0:36:39 > 0:36:42for approximately £1,400 per calendar month.
0:36:42 > 0:36:44Oh, yes, there are improvements to be made,
0:36:44 > 0:36:46starting with that first-floor layout
0:36:46 > 0:36:49which doesn't work very well at the moment.
0:36:49 > 0:36:51But once that's addressed, well,
0:36:51 > 0:36:53this could be a really lovely home for someone.
0:36:53 > 0:36:57And with that one of £190,000 guide price, well,
0:36:57 > 0:37:02this could be an affordable way to buy a whole house in London.
0:37:02 > 0:37:05Let's find out who agreed when we went to auction.
0:37:05 > 0:37:08Move on now to lot 108.
0:37:08 > 0:37:12Who'd like to get me started on this, lot 108? 220?
0:37:12 > 0:37:14What about 200 then, try and help.
0:37:14 > 0:37:16Thank you, 200, got you.
0:37:16 > 0:37:20201, got you. 202. 203.
0:37:21 > 0:37:23204.
0:37:23 > 0:37:28The auctioneer started the bidding above that guide price of £190,000
0:37:28 > 0:37:30and, going up in £1,000 increments,
0:37:30 > 0:37:35we rejoin the bidding at £221,000.
0:37:35 > 0:37:38221, more competition. 222.
0:37:40 > 0:37:41223.
0:37:41 > 0:37:43224.
0:37:44 > 0:37:47225.
0:37:47 > 0:37:48226.
0:37:48 > 0:37:50227.
0:37:50 > 0:37:52228.
0:37:52 > 0:37:53229.
0:37:54 > 0:37:56230.
0:37:56 > 0:37:59230. 231.
0:37:59 > 0:38:00232.
0:38:02 > 0:38:07No? It's with you, sir, the bid's £231,000. Anybody else?
0:38:07 > 0:38:11If not, 231 for the first...
0:38:11 > 0:38:13231 for the second...
0:38:13 > 0:38:17231 for the third and final time. All done?
0:38:17 > 0:38:18Sold, 231.
0:38:19 > 0:38:24Farhan and his business partner Mohammed paid £231,000.
0:38:25 > 0:38:28Although this isn't Farhan's debut development,
0:38:28 > 0:38:32this was the first time he'd bought property at an auction.
0:38:32 > 0:38:35So, what did the auction room rookie have planned for this?
0:38:37 > 0:38:40- Farhan, congratulations. - Thank you very much.
0:38:40 > 0:38:43Now, this had a relatively low guide price.
0:38:43 > 0:38:46Is that what was the big attraction to start with?
0:38:46 > 0:38:51The guide price, and I have been in Croydon for a while.
0:38:51 > 0:38:55I was looking for the properties and this was one of them.
0:38:55 > 0:39:01So I... I knew it would not go for 190, so I had my budget in my mind,
0:39:01 > 0:39:04but still I'm happy with what I paid for.
0:39:04 > 0:39:06So, how much research did you do?
0:39:06 > 0:39:09Because that's one thing I do say to a lot of potential buyers -
0:39:09 > 0:39:11do your research before you go to the auction,
0:39:11 > 0:39:14check out the legal pack, try and get the house surveyed.
0:39:14 > 0:39:16Did you do any of those things?
0:39:16 > 0:39:20For this particular option, I had five or six other properties
0:39:20 > 0:39:24in my mind, so I had done my research on those as well.
0:39:24 > 0:39:28I read the legal packs, I'd been to those properties and all that.
0:39:28 > 0:39:31- What about this one? - This one, I've been here two times,
0:39:31 > 0:39:38so I came here once and then I liked the property, so then I came again.
0:39:38 > 0:39:40I did read the legal pack myself.
0:39:40 > 0:39:43I didn't seek the advice of my solicitor,
0:39:43 > 0:39:47but I had a read through myself, so I did read the legal pack, yes.
0:39:47 > 0:39:49What was the point of buying this?
0:39:49 > 0:39:51Have you bought this as a buy-to-let?
0:39:51 > 0:39:53Are you going to sell it on straightaway?
0:39:53 > 0:39:55This is a kind of investment.
0:39:55 > 0:39:57I just want to buy and sell
0:39:57 > 0:40:00and move on to these other ones, the second one.
0:40:00 > 0:40:03So you need to make an instant profit out of this as quickly as you can.
0:40:03 > 0:40:07Right, tell me, what are you going to do to this property
0:40:07 > 0:40:09to really make it the best it can be?
0:40:09 > 0:40:11It needs a new kitchen, new bath,
0:40:11 > 0:40:16and the doors and windows, most of them, they need changing.
0:40:16 > 0:40:19I'm not very happy with the layout upstairs,
0:40:19 > 0:40:22so I think, ideally, that needs to be changed,
0:40:22 > 0:40:24but I will seek some advice.
0:40:24 > 0:40:27You know, I might have to bring an architect
0:40:27 > 0:40:29because I'm not happy the way it is now.
0:40:29 > 0:40:34We have two rooms which are kind of compromised, in terms of space,
0:40:34 > 0:40:37so if we can have at least one of them a little bit bigger,
0:40:37 > 0:40:42so we can have two doubles, one single and then two receptions.
0:40:42 > 0:40:44# And that's music
0:40:44 > 0:40:48# Sweet music to my ear... #
0:40:48 > 0:40:49That is music to my ears.
0:40:49 > 0:40:52Farhan is going to tackle the odd layout,
0:40:52 > 0:40:54and if he wants to sell quickly, the consensus is
0:40:54 > 0:40:58that having an upstairs bathroom is the right way to go.
0:40:58 > 0:41:01So, is that what he's thinking?
0:41:03 > 0:41:07I mean, we can do it only if we compromise on one bedroom altogether,
0:41:07 > 0:41:09so we will have to give up one bedroom
0:41:09 > 0:41:11to take the bathroom upstairs.
0:41:11 > 0:41:16So the house will end up being a two bed house instead of being
0:41:16 > 0:41:18a three bed house.
0:41:18 > 0:41:21This is definitely worth considering all the options
0:41:21 > 0:41:22that we have on the table.
0:41:22 > 0:41:25I suppose a lot of the time it's dictated by your budget.
0:41:25 > 0:41:27How much money have you got to spend?
0:41:27 > 0:41:30If we don't change the layout upstairs
0:41:30 > 0:41:33and do the bathroom, kitchen,
0:41:33 > 0:41:37all the kind of decoration, floors,
0:41:37 > 0:41:40we have to change the windows, doors,
0:41:40 > 0:41:44- so I should aim for 15,000 maximum. - 15,000.
0:41:44 > 0:41:46That's to keep the three beds upstairs, bathroom downstairs?
0:41:46 > 0:41:50- 15 grand for the lot?- Yes. - That's a reasonably tight budget.
0:41:50 > 0:41:54These are the main bits that we have to cover.
0:41:54 > 0:41:56If the layout upstairs, if we get it right,
0:41:56 > 0:42:00for the time being to sell this property, that should be enough.
0:42:00 > 0:42:04If Farhan's research and layout plans were music to my ears
0:42:04 > 0:42:08then his 15 grand budget is more of an alarm going off.
0:42:08 > 0:42:10And it's not just that tight budget.
0:42:10 > 0:42:14He wants his building team to do it in six weeks. Wow.
0:42:14 > 0:42:18He has renovated a property before but not on this scale. Yikes.
0:42:18 > 0:42:21However, his move into property is backed with a bit of good
0:42:21 > 0:42:23business know-how.
0:42:23 > 0:42:27Farhan already owns two businesses, one which is a pizza shop,
0:42:27 > 0:42:29so he knows a bit about earning a crust.
0:42:33 > 0:42:36What is it you love so much about property developing
0:42:36 > 0:42:39and why is this the business that you want to go into?
0:42:39 > 0:42:41Come on, everybody loves pizza.
0:42:41 > 0:42:44Yeah, but everybody, when it comes to money, they like property too,
0:42:44 > 0:42:47because they know that pizza is about small money
0:42:47 > 0:42:49and property is about big money.
0:42:49 > 0:42:51Property prices are always going up.
0:42:51 > 0:42:54So we are thinking that this is something that is working for you,
0:42:54 > 0:42:58even if you are a homeowner, where you are living,
0:42:58 > 0:43:02or if you have one property that you are letting out.
0:43:02 > 0:43:05Normally, it is going to the positive direction for you.
0:43:05 > 0:43:08Great stuff, so, less of the pizza, more of the developing.
0:43:08 > 0:43:10- It's been lovely meeting you today. - Thank you.
0:43:10 > 0:43:12- Congratulations and good luck. - Thank you.
0:43:12 > 0:43:16It's an exciting time for pizza man Farhan who has jumped
0:43:16 > 0:43:17onto the property developing wagon
0:43:17 > 0:43:21and now hopes to ride along a successful new career path.
0:43:21 > 0:43:23However, there is a lot of hard work to do first.
0:43:23 > 0:43:26And let's not forget this is the first time he's tackled
0:43:26 > 0:43:29a renovation of this size.
0:43:29 > 0:43:32Will he have deep pan pockets and make some dough?
0:43:32 > 0:43:34Or will he fail to deliver?
0:43:34 > 0:43:38You can find out how he gets on later in the programme.
0:43:41 > 0:43:43Well, time has passed
0:43:43 > 0:43:45and we've seen how one of our developments has got on.
0:43:45 > 0:43:48- Yes, but what about the other two? - Let's have a look.
0:43:51 > 0:43:55Back now to Llanelli where I went to the pub, not for a tipple,
0:43:55 > 0:43:58but to see this large bar which was in good condition
0:43:58 > 0:44:01and better yet, it came with an upstairs
0:44:01 > 0:44:04maisonette three-bedroom flat.
0:44:04 > 0:44:07Except the layout made you feel like you'd had more than a couple
0:44:07 > 0:44:11with an entrance at the back, a covered stairwell,
0:44:11 > 0:44:14out onto the patio and then into the flat.
0:44:16 > 0:44:21So it seems like that's not the only bit of strange design going on.
0:44:21 > 0:44:24A huge great fire thing.
0:44:24 > 0:44:26This strange, whatever it is,
0:44:26 > 0:44:30and then you go down this little corridor which winds round here to
0:44:30 > 0:44:34a bathroom that's fantastic if you want to play chess or backgammon.
0:44:34 > 0:44:38And then the property extends back this way.
0:44:38 > 0:44:41As you can see, it goes on and on and on.
0:44:41 > 0:44:44You're certainly getting a lot of space.
0:44:44 > 0:44:46You'd need to sit down and a darkened room
0:44:46 > 0:44:49and figure out what you're going to do with it.
0:44:51 > 0:44:53Paying £87,000 at auction,
0:44:53 > 0:44:56Wesley certainly knew what he wanted to do.
0:44:56 > 0:44:59He wanted to reopen it as a bar and redecorate the flat
0:44:59 > 0:45:04for a budget of £5,000-£7,000 for both and it looks like
0:45:04 > 0:45:08there were many happy hours ahead as his cousin Kenny was going to
0:45:08 > 0:45:12bring his entertainment experience gained over the last 30 years.
0:45:14 > 0:45:18- Big opening night? - Maybe, we'll see.- Come on.
0:45:18 > 0:45:20Depends how much you're going to pay me.
0:45:20 > 0:45:21If I know Wesley, I will be.
0:45:21 > 0:45:23And for free.
0:45:24 > 0:45:27And so three months after we first visited,
0:45:27 > 0:45:30have they had that big opening night?
0:45:42 > 0:45:46So it's opening time here but what about that maisonette flat?
0:46:16 > 0:46:20The flat is looking better. Much cleaner and much brighter.
0:46:20 > 0:46:25And here's our new pub landlord Wesley and his cousin Kenny.
0:46:27 > 0:46:29Wesley plans to rent this maisonette flat out
0:46:29 > 0:46:32so what's he done to get it up to scratch?
0:46:32 > 0:46:36MUSIC ON SOUNDTRACK DROWNS OUT SPEECH
0:46:36 > 0:46:38In the flat, we have had it all painted out.
0:46:38 > 0:46:42New carpets and a few leaks sorted out.
0:46:42 > 0:46:47And the roofs and doors and stuff. Just little bits and pieces really.
0:46:47 > 0:46:50Nothing major, just a bit of general maintenance.
0:46:50 > 0:46:54So just a few fixes and it's ready to rent.
0:46:54 > 0:46:58But for Wesley this auction buy was really about the pub downstairs.
0:46:58 > 0:47:03It's now been up and running again for about two months.
0:47:03 > 0:47:05What has he had to do to refresh it?
0:47:09 > 0:47:13There's a few walls have been plastered. A bit of painting.
0:47:13 > 0:47:14A bit of tidying up.
0:47:14 > 0:47:16The floors have been re-sanded
0:47:16 > 0:47:18and a bit of furniture in there really.
0:47:18 > 0:47:21I work here myself and I've got people who work for me as well.
0:47:21 > 0:47:24Every Saturday, we get different live acts in,
0:47:24 > 0:47:25bands et cetera, vocalists.
0:47:25 > 0:47:29It's been really good. It's really busy on Saturday.
0:47:29 > 0:47:30And those live acts
0:47:30 > 0:47:34are down to Kenny's knowledge of the entertainment scene.
0:47:34 > 0:47:38What does he think of the bar and is he helping Wesley pull the pints?
0:47:40 > 0:47:43# That's entertainment. #
0:47:44 > 0:47:50The bar design hasn't changed a great deal, other than a lick of paint.
0:47:50 > 0:47:53It just needed refreshing and he's done a great job on it.
0:47:53 > 0:47:55The pub itself, you won't see me behind the bar.
0:47:55 > 0:47:57You'll see me the other side of the bar.
0:47:57 > 0:48:01I'll drink to that. Wesley did manage to get some mates in to help
0:48:01 > 0:48:04and has kept to his one-month timescale.
0:48:04 > 0:48:08But has he kept to his £5,000-£7,000 budget?
0:48:11 > 0:48:14I have spent under £5,000 here
0:48:14 > 0:48:17and I've saved quite a bit by doing a lot of work myself.
0:48:17 > 0:48:19Well, I've done quite a bit to be honest with you
0:48:19 > 0:48:21and kept an eye on the boys.
0:48:21 > 0:48:25And with that budget saving, the next round is on Wesley.
0:48:25 > 0:48:29There might be more cheer once the local estate agents
0:48:29 > 0:48:30give their opinion.
0:48:30 > 0:48:33What did they think of the bar and the flat?
0:48:34 > 0:48:36I like the sports club thing.
0:48:36 > 0:48:39I like the emblems on the ceiling from the football clubs.
0:48:39 > 0:48:43There are some widescreen TVs for watching the soccer on TV
0:48:43 > 0:48:49and the rugby. Yes, I'm very pleased with it, overall.
0:48:49 > 0:48:53It's very attractive and I think it will do well.
0:48:53 > 0:48:57So thumbs up for the bar. How about the flat?
0:48:58 > 0:49:00It's nicely decorated. It's nice and fresh.
0:49:00 > 0:49:02You can still smell the paint which is good.
0:49:02 > 0:49:05It's all locked in natural light. Two good-sized bedrooms.
0:49:05 > 0:49:06The attic room as well is nice
0:49:06 > 0:49:10but my favourite feature is the private patio at the back.
0:49:11 > 0:49:13Having now spent a total of £92,000,
0:49:13 > 0:49:17Wesley plans to keep the pub going and rent upstairs.
0:49:17 > 0:49:19What could they sell the whole building for
0:49:19 > 0:49:22and what kind of rentals can they expect?
0:49:25 > 0:49:28A resale on this building I would expect to fetch £110,000.
0:49:28 > 0:49:32For the bar downstairs you would be looking to rent it for about £1,000 a month,
0:49:32 > 0:49:36and the flat up here, because it's a good size, you could fetch £425 a month.
0:49:36 > 0:49:41For the building as a whole, I would value it at £125,000 for sale.
0:49:41 > 0:49:46If both parts of the property were rented out, I would value
0:49:46 > 0:49:49the bar at £1,000 per calendar month
0:49:49 > 0:49:52and the flat at £425 per calendar month.
0:49:54 > 0:49:59At a top resale value of £125,000, Wesley could stand to make
0:49:59 > 0:50:02a pre-tax profit of £33,000.
0:50:02 > 0:50:04That's not bad for a month down the pub.
0:50:07 > 0:50:11That's all right I suppose if that's what they say it is.
0:50:11 > 0:50:15I expected a little bit more because it's up
0:50:15 > 0:50:19and running as well now compared to what it was before.
0:50:19 > 0:50:22But no, I think it's reasonable. Yeah.
0:50:24 > 0:50:27# Have a drink on me
0:50:27 > 0:50:29# Have a drink on me. #
0:50:31 > 0:50:34A little bit of a sober reaction there but actually there is
0:50:34 > 0:50:36reason for good cheer.
0:50:36 > 0:50:38If Wesley were to rent both the pub and the flat out
0:50:38 > 0:50:43he would make a yield of 18.5%. But of course running the bar
0:50:43 > 0:50:46as a business and having the income from the flat
0:50:46 > 0:50:48makes it a win-win situation.
0:50:48 > 0:50:52This is his second bar so will he be buying any more?
0:50:53 > 0:50:57- No, I won't be buying any more bars. Not at the moment.- Yet.
0:50:57 > 0:50:59THEY LAUGH
0:51:04 > 0:51:09Now back to the London Borough of Croydon in the south of the city and
0:51:09 > 0:51:15this three-bedroom property which had a guide price of just £190,000.
0:51:15 > 0:51:22A potential steal for the area. But inside, the layout was a disaster.
0:51:22 > 0:51:26There were three bedrooms but the configuration was all wrong.
0:51:26 > 0:51:28But I came up with a plan.
0:51:28 > 0:51:34I think the way to get round this would be to open that up.
0:51:34 > 0:51:35You could put a wall across here,
0:51:35 > 0:51:39therefore you'd have a much better space in that room.
0:51:39 > 0:51:41I think if you do these little tweaks you would have
0:51:41 > 0:51:44three not bad sized bedrooms.
0:51:44 > 0:51:46And I think that is potentially the way to go.
0:51:46 > 0:51:50Farhan thought the way to go was to the auction room
0:51:50 > 0:51:53and snapped this up for 231,000.
0:51:55 > 0:51:58He owns a convenience store and a pizza parlour.
0:51:58 > 0:52:02Farhan and his business partner Mohammed saw property as a way
0:52:02 > 0:52:04to make some extra dough.
0:52:05 > 0:52:07What is it you love so much about property developing
0:52:07 > 0:52:10and why is this a business that you want to go into?
0:52:10 > 0:52:12Come on, everybody loves pizza.
0:52:12 > 0:52:16Yes, but everybody, when it comes to money, they like property too,
0:52:16 > 0:52:19because they know that pizza is about small money
0:52:19 > 0:52:21and property is about big money.
0:52:21 > 0:52:25We are back three months later to see what changes have been made.
0:52:25 > 0:52:28The outside certainly looks much more appealing
0:52:28 > 0:52:30and Farhan is here to show us
0:52:30 > 0:52:33if he was able to figure out that layout inside.
0:52:59 > 0:53:03You almost wouldn't recognise this house from before.
0:53:03 > 0:53:07All the damp patches have gone and the whole house has been painted.
0:53:07 > 0:53:10New flooring and carpets have been laid throughout.
0:53:10 > 0:53:14The neutral tones give a light and spacious feel and the upstairs
0:53:14 > 0:53:19still has three bedrooms and a fabulous new shower room.
0:53:19 > 0:53:25So, the corridor, it kind of went from there and all the way down here
0:53:25 > 0:53:28and then it went right towards that corner.
0:53:28 > 0:53:30So we decided to change the layout in a way
0:53:30 > 0:53:34that we can give this space to this bedroom,
0:53:34 > 0:53:36which I've called bedroom two, with its size.
0:53:36 > 0:53:39Then we moved that door to this side
0:53:39 > 0:53:45so that we had this room in a square shape and this bathroom was
0:53:45 > 0:53:49not here before so we managed to make some space for this bathroom as well.
0:53:49 > 0:53:51I'm very pleased with the layout that we have now.
0:53:51 > 0:53:54We've got two double beds, one single bed,
0:53:54 > 0:53:57one shower room, which is my favourite in the property.
0:53:57 > 0:54:00So, the layout works much better now than it was before.
0:54:02 > 0:54:06As well as the shower room upstairs, Farhan also chose to keep
0:54:06 > 0:54:08the bathroom downstairs just off the kitchen
0:54:08 > 0:54:12and has renovated both with a few finishing touches still to add.
0:54:15 > 0:54:19You can see that we have an entirely new kitchen and new bath.
0:54:19 > 0:54:23We got rid of everything that we had when we started off.
0:54:23 > 0:54:27The place, it needed replastering, reskimming, decor,
0:54:27 > 0:54:31tiling, all the new units, everything new,
0:54:31 > 0:54:35so we managed to do it in a way that I'm happy with.
0:54:35 > 0:54:38I'm pleased Farhan went for a high spec finish.
0:54:38 > 0:54:43I wasn't really sure he'd do justice to the house with just £15,000.
0:54:43 > 0:54:46But how long did all this take?
0:54:46 > 0:54:49It's been about three months and we are almost finished
0:54:49 > 0:54:52although maybe three or four days' job, just finishing small
0:54:52 > 0:54:56things that needs to be done yet.
0:54:58 > 0:55:03Now this is the part I dread to ask on a high spec finished house.
0:55:03 > 0:55:06What happened with the budget?
0:55:06 > 0:55:10We started off with a budget of £15,000-£18,000 which would
0:55:10 > 0:55:12have been very good news.
0:55:12 > 0:55:17But unfortunately when you start you spot small things that needs doing.
0:55:17 > 0:55:21Apart from that, we thought that we should try to finish with
0:55:21 > 0:55:24a high spec job and whatever needed to be done
0:55:24 > 0:55:28we didn't compromise on that either. So we tried to put the quality
0:55:28 > 0:55:32stuff and whatever changes we needed to do in the layout. We did that.
0:55:32 > 0:55:36So we have roughly spent about £30,000.
0:55:38 > 0:55:41Pursuit of perfection has doubled Farhan's budget
0:55:41 > 0:55:43but was it worth while?
0:55:43 > 0:55:46Two local property experts can tell us
0:55:46 > 0:55:49starting with the agent who saw it before the renovation.
0:55:50 > 0:55:53There are loads of changes that the owner has made to this property.
0:55:53 > 0:55:54Particularly the upstairs.
0:55:54 > 0:55:58The most significant change is adding the upstairs bathroom.
0:55:58 > 0:56:00For this type of property in this area that works really well.
0:56:00 > 0:56:04Having a downstairs bathroom, to some potential buyers,
0:56:04 > 0:56:05is a slight negative
0:56:05 > 0:56:09so having the upstairs bathroom really does make a big difference.
0:56:09 > 0:56:11Having had a look around the property, it is very nicely done.
0:56:11 > 0:56:14There's a few little bits to be finished off, snagging, basically.
0:56:14 > 0:56:17It's a nice sized property. They've done it really well.
0:56:17 > 0:56:20It's neutral but the kitchen and the bathrooms give it
0:56:20 > 0:56:23a little bit of style, its own sense of purpose which is good.
0:56:23 > 0:56:26But when it's finished, what will it be worth
0:56:26 > 0:56:31and will it justify Farhan's total spend of 261,000?
0:56:34 > 0:56:37In terms of a resell price,
0:56:37 > 0:56:41I believe that the property would achieve £335,000.
0:56:41 > 0:56:44This property would sell for approximately £330,000.
0:56:47 > 0:56:50At a top estimate of 335,000,
0:56:50 > 0:56:56Farhan could see a profit of £74,000 before the usual taxes and expenses.
0:57:00 > 0:57:05Yeah, quite pleased with the values, although I am a bit more optimistic.
0:57:05 > 0:57:08I think it will sell probably a little more than that
0:57:08 > 0:57:10but still with that valuation,
0:57:10 > 0:57:13I can't be unhappy so I'm pleased with the valuation, yeah.
0:57:13 > 0:57:18# But I just want a little "pizza" you... #
0:57:19 > 0:57:23So, Farhan has taken a slice out of the Croydon property market
0:57:23 > 0:57:27and stands to make a really good return on his investment.
0:57:27 > 0:57:29But what does he prefer -
0:57:29 > 0:57:31a "pizza" the property market
0:57:31 > 0:57:33or running his pizza shop?
0:57:33 > 0:57:35Sorry. Yeah, far too cheesy.
0:57:38 > 0:57:41Pizza because I've been in that business for a few years now
0:57:41 > 0:57:43and property I've just started.
0:57:43 > 0:57:45So to start with the properties, I can't complain,
0:57:45 > 0:57:48I'm happy with it but I have to save for a couple of years at least
0:57:48 > 0:57:51before I can make it a full time business or something.
0:57:53 > 0:57:55Different properties, different issues.
0:57:55 > 0:57:57Yeah, the trick is to find them quickly and safely
0:57:57 > 0:57:59- without blowing your budget.- Yeah.
0:57:59 > 0:58:02Well, we'll have more problem-solving for you next time
0:58:02 > 0:58:05- here on Homes Under The Hammer. - See you.- Goodbye.- Goodbye.- Goodbye.