0:00:00 > 0:00:03Well, Lucy and I are absolutely passionate about property,
0:00:03 > 0:00:05which is just as well, cos it's our job.
0:00:05 > 0:00:08We love the whole thing, from finding the property
0:00:08 > 0:00:11to getting your hands dirty, or even choosing the kitchen.
0:00:11 > 0:00:13We've got our own exciting bit of news here
0:00:13 > 0:00:16on Homes Under The Hammer, because we're joined by Dion Dublin,
0:00:16 > 0:00:19- who loves property as much as we do. - Hey, Dion.- Absolutely.
0:00:19 > 0:00:22And like you two, I love my property, but I love a bargain even more.
0:00:22 > 0:00:25So let's go to the auction and see how we got on.
0:00:50 > 0:00:52So if you're looking for a good deal, well,
0:00:52 > 0:00:54the auction room is a great place to start,
0:00:54 > 0:00:58but make sure you do your research before you go in for that bid.
0:00:58 > 0:01:01Yes, and even then, you have to expect the unexpected.
0:01:01 > 0:01:03Yeah, let's take a look at the properties
0:01:03 > 0:01:06which made our buyers part with their cash on today's show.
0:01:07 > 0:01:10On the show today, will a property near Durham
0:01:10 > 0:01:12make a big change in this family's life?
0:01:12 > 0:01:14Tell us how long you've been looking for.
0:01:14 > 0:01:16About 11 years, been looking for a house.
0:01:17 > 0:01:20Will the size of these rooms in Derby put off the buyers?
0:01:20 > 0:01:24All of the bedrooms...nnngh...
0:01:24 > 0:01:27are really, really small.
0:01:27 > 0:01:29But if it's room you want,
0:01:29 > 0:01:32this property in London won't disappoint.
0:01:32 > 0:01:37I am here to see a shop together with two flats on the upper floors.
0:01:39 > 0:01:41All these properties have been sold at auction.
0:01:41 > 0:01:44We'll find out who bought them and what they paid for them
0:01:44 > 0:01:46when they went under the hammer.
0:01:46 > 0:01:47Here at 27.
0:01:54 > 0:01:57This is Terris Novalis. Standing at six metres tall,
0:01:57 > 0:02:00this stainless steel sculpture is situated
0:02:00 > 0:02:03just outside Consett in County Durham.
0:02:04 > 0:02:07It was created by artist Tony Cragg as a monument
0:02:07 > 0:02:11to what was once Europe's largest steelworks.
0:02:11 > 0:02:14Though the industry has since gone, today Consett
0:02:14 > 0:02:17is a thriving commuter town with great links to local cities.
0:02:21 > 0:02:23The property I'm here to see is in Moorside.
0:02:23 > 0:02:27Now, that's 30 minutes' drive from Newcastle and Durham.
0:02:27 > 0:02:30It's a three-bed semidetached with a guide price
0:02:30 > 0:02:35of £55,000 to £65,000. Let's take a look.
0:02:41 > 0:02:44OK, straight into a porch way area,
0:02:44 > 0:02:48and then into the hallway with another door here,
0:02:48 > 0:02:51and a third door into the property which will keep the warmth in.
0:02:51 > 0:02:56Stairs up to the bedroom with this cool 1940s banister,
0:02:56 > 0:02:58and a nice big lounge area here.
0:02:58 > 0:03:02It's a good space, with a fireplace there as well.
0:03:02 > 0:03:05Through the hallway, even further into the dining room.
0:03:05 > 0:03:09A nice, big dining room with downstairs toilet.
0:03:09 > 0:03:12Now, I would imagine that would have been part of the extension,
0:03:12 > 0:03:16and you get a conservatory as well, so lots of space to play with.
0:03:16 > 0:03:18But I'm going to investigate just that little bit further.
0:03:18 > 0:03:22OK, into the kitchen, which is a little bit smaller,
0:03:22 > 0:03:24and I've spotted a couple of tiles over there
0:03:24 > 0:03:28which have bowed and lifted through damp and a bit of leakage.
0:03:28 > 0:03:31But my attention's on the size of this kitchen
0:03:31 > 0:03:33rather than its condition.
0:03:33 > 0:03:36In today's property market, families want family-sized kitchens,
0:03:36 > 0:03:39and this is a family house. So what to do?
0:03:42 > 0:03:44You could actually knock that wall down,
0:03:44 > 0:03:47have the diner and the kitchen all as one.
0:03:47 > 0:03:50Great family space, and the parties always end up in the kitchen.
0:03:50 > 0:03:53# When it's time to party we will party hard... #
0:03:56 > 0:04:00Yes, you can't have a good house party without a good kitchen,
0:04:00 > 0:04:02and if you were to get rid of this wall,
0:04:02 > 0:04:04there'd be plenty of space for a good kitchen.
0:04:04 > 0:04:07But let's be honest - even if left as is,
0:04:07 > 0:04:09it's going to take a lot of redecorating
0:04:09 > 0:04:12before anyone gets invited round here for a party.
0:04:12 > 0:04:14Let's see how upstairs looks.
0:04:16 > 0:04:19Here onto a decent-sized landing area.
0:04:19 > 0:04:24Small bedroom to my right just over here, and another bedroom
0:04:24 > 0:04:27looking at the back of the property which is just that little bit bigger.
0:04:27 > 0:04:29And an upstairs bathroom.
0:04:29 > 0:04:32And into the master, which is the biggest of the three bedrooms.
0:04:32 > 0:04:36I've noticed so much storage space, wardrobe space,
0:04:36 > 0:04:39already built into this property, so that could help you with your budget.
0:04:39 > 0:04:41And one quirky thing I have noticed is
0:04:41 > 0:04:45all the lights in the bedrooms are over the window.
0:04:45 > 0:04:47And can you hazard a guess why?
0:04:48 > 0:04:51# I know there's an answer... #
0:04:51 > 0:04:55Now, never let it be said that we at Hammer leave you hanging.
0:04:55 > 0:04:57Apparently, the lights were placed there
0:04:57 > 0:05:00so that when occupants were undressing,
0:05:00 > 0:05:02they avoided the silhouette being cast on the curtains.
0:05:02 > 0:05:04How very modest.
0:05:06 > 0:05:10Frankly, I'd be more interested in the view. Take a look at that!
0:05:16 > 0:05:18And take a look at that bathroom.
0:05:20 > 0:05:24OK, not quite so spectacular - it does feel a little bit cramped,
0:05:24 > 0:05:28but outside, it's a different story.
0:05:28 > 0:05:30So out into the back garden.
0:05:30 > 0:05:33Now, there's your flat roof, and that's where the leaks
0:05:33 > 0:05:35and the damp will be coming into the property, but with regard
0:05:35 > 0:05:39to extending the property, that could be a perfect space.
0:05:40 > 0:05:43This is a good-sized family home as it stands,
0:05:43 > 0:05:47but I reckon an extension over there could add some valuable accommodation
0:05:47 > 0:05:50in the shape of a fourth bathroom,
0:05:50 > 0:05:54and get rid of those tedious flat roof problems at the same time.
0:05:54 > 0:05:58At that guide price of £55-£65,000,
0:05:58 > 0:06:01the chance to add some value in a big way is a real opportunity,
0:06:01 > 0:06:04and you wouldn't be losing much garden space, either.
0:06:06 > 0:06:08Does the local estate agent agree?
0:06:08 > 0:06:10There's always a demand
0:06:10 > 0:06:13more so for a four-bedroomed property in this area,
0:06:13 > 0:06:16because families do like to stay in the area,
0:06:16 > 0:06:18and because families are growing,
0:06:18 > 0:06:22a two-child family now warrants a four-bedroomed house,
0:06:22 > 0:06:24so I would definitely say there's demand in the area
0:06:24 > 0:06:26for this type of property.
0:06:26 > 0:06:29So according to the estate agent, an extra bedroom
0:06:29 > 0:06:32would certainly increase the demand for this property.
0:06:32 > 0:06:35But would it actually increase the value?
0:06:35 > 0:06:38What does she think the property is worth in its current layout?
0:06:38 > 0:06:41Once this property has been renovated,
0:06:41 > 0:06:43I see the value of this property being
0:06:43 > 0:06:46round about £85,000 to £90,000.
0:06:46 > 0:06:48I would see the rental value of this property
0:06:48 > 0:06:52being round about £450 per calendar month.
0:06:52 > 0:06:55And if an extension were to be added above the garage
0:06:55 > 0:06:57for the fourth bedroom?
0:06:57 > 0:07:01In the current sales market, once this property has been extended,
0:07:01 > 0:07:05I would say that this property could then achieve round about £95,000.
0:07:05 > 0:07:08The rental figure on this property then would be
0:07:08 > 0:07:11round about £550 per calendar month.
0:07:11 > 0:07:13This is a good, solid property.
0:07:13 > 0:07:16Now, the extension at the back is a little bit dodgy,
0:07:16 > 0:07:19and sorting that may eat into your budget, but let's see
0:07:19 > 0:07:22who fancied the challenge when it went under the hammer.
0:07:22 > 0:07:24So we're onto lot 34.
0:07:24 > 0:07:26Property is in need of some modernisation,
0:07:26 > 0:07:30but would be ideal for a first-time buyer investment opportunity.
0:07:30 > 0:07:34Start me, then, 60, at £60,000.
0:07:34 > 0:07:36At £60,000. Am I bid 55, then?
0:07:36 > 0:07:39At £50,000, need a bid.
0:07:39 > 0:07:4150 here. At 50 I'm bid now.
0:07:41 > 0:07:44At £50,000. 51, 52,
0:07:44 > 0:07:4653, 54,
0:07:46 > 0:07:5055, 56 - not sure? Here at 55.
0:07:50 > 0:07:52At £55,000, are we all done?
0:07:52 > 0:07:54Back in at 56, 57,
0:07:54 > 0:07:5658, 59...
0:07:58 > 0:08:0158 and a half. 59.
0:08:01 > 0:08:03Half.
0:08:03 > 0:08:0560.
0:08:05 > 0:08:09Half. 61, half.
0:08:09 > 0:08:1162, half.
0:08:14 > 0:08:1662½. 63.
0:08:18 > 0:08:19Half. You're out.
0:08:19 > 0:08:23Here at 63. At £63,000, then.
0:08:23 > 0:08:26First time, second time, if you're all done,
0:08:26 > 0:08:29selling away, then, at £63,000.
0:08:31 > 0:08:33You, sir, congratulations. It's a good buy.
0:08:33 > 0:08:37Sealing the deal with a kiss was Scott and his partner, Andrea.
0:08:39 > 0:08:41Scott and his family have been living in rental accommodation,
0:08:41 > 0:08:45but he's hoping this semi, bought for £63,000,
0:08:45 > 0:08:46will be their perfect new home.
0:08:46 > 0:08:49I went to meet Scott to find out more.
0:08:50 > 0:08:53- Scott, nice to meet you, sir, and congratulations.- Nice to meet you.
0:08:53 > 0:08:56Tell us about your auction experience, first off.
0:08:56 > 0:08:57Well, it was my first time at auction,
0:08:57 > 0:09:00and I took a little bit of support with me.
0:09:00 > 0:09:04I had my partner Andrea and my mother with me, sitting by me.
0:09:04 > 0:09:08And it was one of the later lots,
0:09:08 > 0:09:11which I think was a benefit for us, cos I think a lot of the investors
0:09:11 > 0:09:15had spent their money by the time it got to the end of the auction.
0:09:15 > 0:09:18And I've been looking for a house for a long, long time,
0:09:18 > 0:09:21so when I eventually won the auction,
0:09:21 > 0:09:25- I did get a little bit emotional afterwards.- And rightly so,
0:09:25 > 0:09:28if you actually found somewhere that you've been looking for for how long?
0:09:28 > 0:09:31- Tell us how long you've been looking for.- About 11 years,
0:09:31 > 0:09:34been looking for a house, and been searching this area
0:09:34 > 0:09:37for four, five years now.
0:09:37 > 0:09:42And have never quite found what we've been looking for.
0:09:42 > 0:09:45Been renting for those 11 years,
0:09:45 > 0:09:47and when this house came up, we saw it as an opportunity,
0:09:47 > 0:09:50because it could get us back on the housing ladder,
0:09:50 > 0:09:53and hopefully put a little bit of equity in our pockets as well.
0:09:53 > 0:09:56Scott and his partner Andrea have two daughters,
0:09:56 > 0:09:59and they also have Scott's eldest daughter over to visit.
0:09:59 > 0:10:02It hasn't been easy to find a house that fits the bill,
0:10:02 > 0:10:04but 11 years? Wow.
0:10:06 > 0:10:12# Some people say, why don't you take a chance?
0:10:12 > 0:10:18# To linger is a crime
0:10:18 > 0:10:22# Why take a chance?
0:10:22 > 0:10:29# I'd rather take my time. #
0:10:29 > 0:10:32Well, having taken his time finding it,
0:10:32 > 0:10:35I hope it's not going to take 11 years to do it up.
0:10:35 > 0:10:37What are Scott's plans for the house?
0:10:37 > 0:10:40It might be a little bit different to other properties
0:10:40 > 0:10:43that we've been living in,
0:10:43 > 0:10:45because we've been living in rental properties.
0:10:45 > 0:10:48Rental properties tend to have beige carpets, magnolia walls,
0:10:48 > 0:10:51that kind of thing, and I think we're sick of looking at them.
0:10:51 > 0:10:55So we're going to put a little bit of our own, erm...
0:10:55 > 0:10:58- Touch.- ..touch to it, yeah. Apart from the decoration,
0:10:58 > 0:11:01we're going to knock through the kitchen area,
0:11:01 > 0:11:03which is really small at the minute,
0:11:03 > 0:11:07and make a big open kitchen diner area.
0:11:07 > 0:11:10Means we're going to have to lose the downstairs bathroom,
0:11:10 > 0:11:12but we're looking at options to re-locate that
0:11:12 > 0:11:15- somewhere else downstairs.- OK, and colours. Who's got the eye?
0:11:15 > 0:11:19It's been very difficult to agree on a lot of things, I must admit.
0:11:19 > 0:11:23So I think what we might do is divvy up the rooms,
0:11:23 > 0:11:26and I can choose what I want in certain rooms,
0:11:26 > 0:11:30and my partner, she can choose what she wants in certain rooms.
0:11:30 > 0:11:32So that says to me you'll get one room,
0:11:32 > 0:11:34- and she'll get the rest of the house. - It could go like that.
0:11:34 > 0:11:37- THEY LAUGH - We'll just have to see how it goes.
0:11:37 > 0:11:40I think I might get the hallway and the kitchen. That might be it.
0:11:40 > 0:11:42You've done well if you get that much!
0:11:42 > 0:11:46- Any other plans for the future, what you'd like to do with the property? - Yeah, it's not an immediate plan,
0:11:46 > 0:11:48again due to budget limitations,
0:11:48 > 0:11:51but at the top of the stairs there's the opportunity
0:11:51 > 0:11:54to put a door in and go out on top of the garage roof
0:11:54 > 0:11:56and put an en-suite bedroom,
0:11:56 > 0:11:59a nice big master bedroom,
0:11:59 > 0:12:02and that would have the fantastic views over the valley as well.
0:12:02 > 0:12:04That'd be amazing.
0:12:04 > 0:12:07Budget restraints mean Scott can't build his extension immediately,
0:12:07 > 0:12:11but this is going to be his home, so if he wants to,
0:12:11 > 0:12:12he can build it whenever it suits.
0:12:12 > 0:12:17Speaking of budgets, how much money has Scott set aside for the work?
0:12:18 > 0:12:20- I've got £11,000.- OK.
0:12:20 > 0:12:24And I think it may be tight, with the kitchen and stuff.
0:12:24 > 0:12:27And there's some other essential works that need to be done -
0:12:27 > 0:12:31there are some lintels blown outside on the front of the house,
0:12:31 > 0:12:34and there's a little bit of work to make the garage safe
0:12:34 > 0:12:38- that needs doing. There's an RSJ needs to go in there.- OK.
0:12:38 > 0:12:41Scott works away a lot, and he's very busy
0:12:41 > 0:12:44helping with his family's firework display business.
0:12:44 > 0:12:47So unable to be there himself, he's going to be reliant
0:12:47 > 0:12:51on a team of local tradesmen who also happen to be friends,
0:12:51 > 0:12:54and they're hoping to get it all done in seven weeks.
0:12:54 > 0:12:57- A lot of trust. Leave them to do what they've got to do.- Yeah.
0:12:57 > 0:13:01It is, it's a big trust job, but I know these guys,
0:13:01 > 0:13:03and I'm sure they'll do a fantastic job.
0:13:03 > 0:13:05You seem so happy. I'm pleased for you.
0:13:05 > 0:13:09I'm not surprised you were emotional when you got your home at last.
0:13:09 > 0:13:12- I hope it's going to be a happy home for you.- Thank you very much. - Pleasure.- Cheers.
0:13:14 > 0:13:17So at last, Scott has found his family home,
0:13:17 > 0:13:19but he's not going to be here to oversee the work
0:13:19 > 0:13:23as he'll be away doing amazing firework displays,
0:13:23 > 0:13:25and he's going to have to leave all the work
0:13:25 > 0:13:27in the trusty hands of his builders.
0:13:27 > 0:13:29Will it be a sparkling success?
0:13:29 > 0:13:31You can find out later on in the programme.
0:13:36 > 0:13:41Normanton in Derbyshire is split into two parts - Old Normanton
0:13:41 > 0:13:44and, you guessed it, New Normanton.
0:13:44 > 0:13:47Originally a farming settlement, over the years,
0:13:47 > 0:13:50the area has been swallowed up by Derby
0:13:50 > 0:13:53as its population increased with industrialisation.
0:13:53 > 0:13:57Normanton is now considered a suburb of the city.
0:13:57 > 0:14:01Well, it's in New Normanton that I find today's property.
0:14:01 > 0:14:03About two miles from Derby's city centre,
0:14:03 > 0:14:08a four bedroomed mid-terrace, guide price of £75,000.
0:14:08 > 0:14:11Let's get inside.
0:14:11 > 0:14:12So, fairly standard layout.
0:14:12 > 0:14:15Off the pavement, straight into your front sitting room.
0:14:15 > 0:14:17But it looks to be in reasonable condition.
0:14:17 > 0:14:21I mean, very standard kind of colour schemes - magnolia walls,
0:14:21 > 0:14:23white ceilings, it's pretty much what you want.
0:14:23 > 0:14:27I wonder if this has been rented out, it has that kind of feel to it,
0:14:27 > 0:14:30which also is potentially good news if you were looking
0:14:30 > 0:14:33to rent it out, you know that there's a ready market for that.
0:14:33 > 0:14:36Certainly the close proximity to the city centre would bode well.
0:14:36 > 0:14:39Rear sitting room area here. This is, I imagine,
0:14:39 > 0:14:43where the kitchen would have originally been, but as has happened in a lot of cases,
0:14:43 > 0:14:46somebody's built an extension at some point. But don't you just love this?
0:14:46 > 0:14:49They've put this whole extension on, they just couldn't be bothered
0:14:49 > 0:14:52to move the radiator so you could get rid of this wall as well.
0:14:52 > 0:14:53How daft is that?!
0:14:53 > 0:14:55# I like to move it, move it
0:14:55 > 0:14:57# I like to move it, move it
0:14:57 > 0:14:59# I like to move it, move it
0:14:59 > 0:15:01# You like to move it. #
0:15:01 > 0:15:05That wall has to go.
0:15:05 > 0:15:08Anyway, calming down, the kitchen itself -
0:15:08 > 0:15:10really quite pleasant, if you like red.
0:15:10 > 0:15:13Bathroom at the end there, again, very traditional layout.
0:15:13 > 0:15:17But the interesting thing about this property is the number of bedrooms.
0:15:17 > 0:15:20That's what's got me intrigued. So let's go and explore.
0:15:20 > 0:15:25Let's be honest - other than the kitchen decor being a little bold
0:15:25 > 0:15:29for some people's taste, this house is in good nick.
0:15:29 > 0:15:31But back to those bedrooms upstairs.
0:15:31 > 0:15:33So walking up to the front of the property,
0:15:33 > 0:15:37I was wondering how on earth this could be a four-bedroomed house.
0:15:37 > 0:15:39Having wended my way through here,
0:15:39 > 0:15:41though, I can now see what they've done.
0:15:41 > 0:15:44There's those two bedrooms at the front, there's one in the middle.
0:15:44 > 0:15:48There's a bathroom and a toilet here, which is a bonus,
0:15:48 > 0:15:52and then the final bedroom here at the back.
0:15:52 > 0:15:56But to be fair, all of the bedrooms...nnngh...
0:15:56 > 0:15:58are really, really small.
0:16:00 > 0:16:02So, yes, there are four bedrooms,
0:16:02 > 0:16:05but let's think about inventing a new word -
0:16:05 > 0:16:08a semi-bedroom. Yeah, four semi-bedrooms.
0:16:08 > 0:16:12Well, that's not fair, either - there are three reasonable bedrooms and one semi-bedroom.
0:16:12 > 0:16:17No, back here - two proper bedrooms and two semi-bedrooms. Perfect.
0:16:17 > 0:16:20Either way, I'd re-jiggle it if you could.
0:16:20 > 0:16:24# Now don't you leave me halfway
0:16:24 > 0:16:28# To paradise
0:16:28 > 0:16:30# So near
0:16:30 > 0:16:33# Yet so far away. #
0:16:36 > 0:16:41So near to being a whole bedroom, oh, but so far away.
0:16:41 > 0:16:43There's barely enough room to accommodate a cat
0:16:43 > 0:16:46in some of these rooms, let alone swing one, poor thing.
0:16:46 > 0:16:50To be honest, I think this whole floor needs to be reconfigured,
0:16:50 > 0:16:55though I'm still not sure how they managed to squeeze it all in,
0:16:55 > 0:16:58even if they are semi-bedrooms.
0:16:58 > 0:17:02I'm heading outside to investigate further.
0:17:03 > 0:17:05Well, out of the back here, a small courtyard
0:17:05 > 0:17:07which leads to a slightly small -
0:17:07 > 0:17:10but at least it's a bit of an additional bonus - garden,
0:17:10 > 0:17:13which is good to have. But out here, more importantly,
0:17:13 > 0:17:16you can see exactly how they've managed to squeeze in four bedrooms
0:17:16 > 0:17:19into what, on the face of it, is a fairly smallish property.
0:17:19 > 0:17:21It's a double-storey extension. That was a good thing,
0:17:21 > 0:17:24but don't you wish they'd built it a little bit wider?
0:17:24 > 0:17:26Cos that explains why that particular bedroom
0:17:26 > 0:17:27is a little bit small.
0:17:32 > 0:17:35Overall, it's a decent house, in my opinion.
0:17:35 > 0:17:37So we asked along a local agent
0:17:37 > 0:17:39to tell us what work he thinks needs to be done
0:17:39 > 0:17:43to make the most of this unusually proportioned property.
0:17:46 > 0:17:49I think the work to be done here is quite basic, really.
0:17:49 > 0:17:52It just needs a once over, maybe some emulsion,
0:17:52 > 0:17:55repair to the door, and some tidying up upstairs.
0:17:55 > 0:17:57No more than a couple of thousand pounds.
0:17:57 > 0:17:59I would say £2,000 to put things right.
0:18:00 > 0:18:04£2,000 is by no means a lot for a redevelopment.
0:18:04 > 0:18:08The agent's suggested a rental of £650 per calendar month,
0:18:08 > 0:18:12so if the property could be bought at the guide of 75,000,
0:18:12 > 0:18:16that would give the owner over a 10% yield.
0:18:16 > 0:18:19But what about the sale valuation?
0:18:19 > 0:18:22I would say that if this property were brought up to a good standard,
0:18:22 > 0:18:24with a reasonable period of time,
0:18:24 > 0:18:27it would achieve a price somewhere in the region of £95,000.
0:18:29 > 0:18:31Well, apart from a new bit of glass
0:18:31 > 0:18:34and a bit of painting here and there, not much needed
0:18:34 > 0:18:36to sort this place out, yeah. So for that guide price,
0:18:36 > 0:18:38a really good one to go for. Let's see who agreed
0:18:38 > 0:18:42when it went under the hammer.
0:18:42 > 0:18:45It's a modernised four-bedroomed terraced house,
0:18:45 > 0:18:48gas centrally heated, mostly double-glazed.
0:18:48 > 0:18:50Start me on that where you will, ladies and gentlemen. 75?
0:18:50 > 0:18:52Who's got 72 to start me?
0:18:52 > 0:18:5570 to put it into the bidding, then. 70,000.
0:18:55 > 0:18:57Thank you. At £70,000.
0:18:57 > 0:19:0071 from somewhere else? 71 is bid.
0:19:00 > 0:19:03At 71,000. 72?
0:19:03 > 0:19:0672 I've got. At £72,000.
0:19:06 > 0:19:0873.
0:19:08 > 0:19:10At 73. 74.
0:19:10 > 0:19:1274 is bid.
0:19:12 > 0:19:14At 74. 75 now?
0:19:14 > 0:19:17At £74,000.
0:19:17 > 0:19:1874½.
0:19:18 > 0:19:21At 74½. 75.
0:19:21 > 0:19:2375½.
0:19:23 > 0:19:2775½. 76.
0:19:27 > 0:19:2876½.
0:19:28 > 0:19:30And seven. 77.
0:19:30 > 0:19:34One more? 77, five. 78?
0:19:34 > 0:19:38At £77,500, all done?
0:19:38 > 0:19:43For the first time, for the second time, at 77,500.
0:19:43 > 0:19:45Third opportunity, finished with it.
0:19:45 > 0:19:48Sold at 77½. Thank you.
0:19:48 > 0:19:53And the successful bid of £77,500 was made by Mahesh.
0:19:53 > 0:19:57Mahesh will be working with his friend Mayur,
0:19:57 > 0:20:00and if you recognise them, that's because this London-based pair
0:20:00 > 0:20:03have been on the show before, when they renovated
0:20:03 > 0:20:06a sprawling six-bed house nearby.
0:20:06 > 0:20:10I caught up with them to see what they had planned for this one.
0:20:10 > 0:20:14- Mahesh, Mayur. Good to see you again.- Good to see you again. - How are you guys?
0:20:14 > 0:20:16- Fine, thank you.- Nice to see you. - Good.- Very good.
0:20:16 > 0:20:19So, how come you wanted to buy this particular house?
0:20:19 > 0:20:23This is a four-bedroom house,
0:20:23 > 0:20:27which is quite suitable for a larger family.
0:20:27 > 0:20:30So what's attracted you to this part of the world?
0:20:30 > 0:20:34- The prices.- Right, OK.- The prices in London are so high,
0:20:34 > 0:20:38- and this has got great return on investment here as well.- Right.
0:20:38 > 0:20:40Mahesh and Mayur are old friends,
0:20:40 > 0:20:44and Mayur, who has property developing experience,
0:20:44 > 0:20:48has been advising Mahesh on how best to develop his auction purchases.
0:20:48 > 0:20:53So is he providing his educational services for free?
0:20:53 > 0:20:56- He is, he's a good friend. - No, no, no. His wife cooks for me.
0:20:56 > 0:21:00- THEY LAUGH - Brilliant.
0:21:00 > 0:21:03Mahesh's wife must be a mean cook.
0:21:03 > 0:21:06Seriously, it's great that he has an experienced friend
0:21:06 > 0:21:10that he can go to for help. So what's the plan?
0:21:11 > 0:21:17OK, so upstairs, we just need to adjust the second bedroom.
0:21:17 > 0:21:21If we can readjust the corridor,
0:21:21 > 0:21:26it is possible that we can actually create that second room
0:21:26 > 0:21:30- in much bigger and better shape. - Oh, OK.- So that's one thing.
0:21:30 > 0:21:35And then downstairs, any plans for the kitchen or the loo or whatever?
0:21:35 > 0:21:39What would be nice is to just block it off with a door,
0:21:39 > 0:21:42to just make it a little bit more fireproof
0:21:42 > 0:21:46- in respect to whoever is living here...- Oh, OK.
0:21:46 > 0:21:52..would be safer for them. So that we probably just put a large window
0:21:52 > 0:21:55and a door space between this room and the kitchen behind us.
0:21:55 > 0:21:58Oh, well, that's interesting, cos I was thinking about taking down
0:21:58 > 0:22:01the little bit of wall that's there and moving the radiator.
0:22:01 > 0:22:03But you were in fact thinking about blocking that up more.
0:22:03 > 0:22:05We were suggested this by the housing association,
0:22:05 > 0:22:08who will be taking this property on a three-year lease from us.
0:22:08 > 0:22:10Ah, that's very interesting.
0:22:10 > 0:22:13The guys have come to some sort of leasing arrangement
0:22:13 > 0:22:15with the local housing association.
0:22:15 > 0:22:19So it looks like that little wall has been saved.
0:22:21 > 0:22:24So was it a requirement of the housing association
0:22:24 > 0:22:25that you did some of these works?
0:22:25 > 0:22:29OK, so housing association, they came round to inspect the property,
0:22:29 > 0:22:32and they suggested a few things.
0:22:32 > 0:22:35They talked about the insulation on the loft,
0:22:35 > 0:22:37which we have not seen as yet,
0:22:37 > 0:22:40so we probably need to just re-insulate the loft.
0:22:40 > 0:22:43So, just explain the process, then.
0:22:43 > 0:22:46Did you just decide you wanted to rent to the housing association?
0:22:46 > 0:22:50You approach them and say, "I've got a house you might be interested in." Is that how it works?
0:22:50 > 0:22:53That's exactly what it is, yes. So we've been in touch with them,
0:22:53 > 0:22:55and they are interested, and this is particularly
0:22:55 > 0:22:57because it's a four-bedroom house,
0:22:57 > 0:22:59they are a lot more interested in that.
0:22:59 > 0:23:01And once they've taken it on, if they do,
0:23:01 > 0:23:03what would your involvement from that point be?
0:23:03 > 0:23:06OK, so to start, we have to just make sure that
0:23:06 > 0:23:12all the safety aspects of the house are up-to-date,
0:23:12 > 0:23:17and when it comes to just ongoing,
0:23:17 > 0:23:20then if there is anything structural or anything major,
0:23:20 > 0:23:22then the housing association would phone me.
0:23:22 > 0:23:26Otherwise, just smaller things, it will be their responsibility.
0:23:26 > 0:23:28Anything internal, anything they damage
0:23:28 > 0:23:30would be their responsibility.
0:23:30 > 0:23:33- And do they find tenants for you? - That's right.
0:23:33 > 0:23:36So they actually guarantee the rent to us,
0:23:36 > 0:23:40and whether they have a tenant or not, it's their responsibility.
0:23:40 > 0:23:45Mahesh and Mayur have a budget of between £2,000 and £3,000,
0:23:45 > 0:23:49and are intending using it to build that door between the dining room
0:23:49 > 0:23:52and the kitchen and generally renovate the house.
0:23:52 > 0:23:55If the deal with the housing association then goes through,
0:23:55 > 0:24:00they'll be looking at a rental of just under £650 per calendar month.
0:24:00 > 0:24:03So what's the timescale for getting it rented out?
0:24:03 > 0:24:06- Well, to finish the work, about three weeks.- OK.
0:24:06 > 0:24:09- Having it rented out, maybe four. - Well, great to see you both again. Good luck with it.
0:24:09 > 0:24:12- Thank you very much.- And probably see you again at some point in the future!
0:24:12 > 0:24:15- HE LAUGHS - Look forward to that. Thank you, bye.
0:24:15 > 0:24:18Well, it looks like it looks like Mahesh and Mayur
0:24:18 > 0:24:20have got things well sorted with this place.
0:24:20 > 0:24:25Over 10% yield, very low amount of money going into renovating it.
0:24:25 > 0:24:28Too good to be true? Well, there's only one way to find out,
0:24:28 > 0:24:33and that's to join us later in the show and see how they get on.
0:24:34 > 0:24:36Still to come - it's all about the money,
0:24:36 > 0:24:39and it sounds like they're giving away properties in London.
0:24:39 > 0:24:41The shop's sort of come in for free,
0:24:41 > 0:24:44so yes, I can take my time and do what I want.
0:24:45 > 0:24:48And in Derby, will a clever idea yield a greater return?
0:24:48 > 0:24:53We realised that we can get something like £30-£40 a month more for that.
0:24:57 > 0:25:01Time to return to Moorside to see this three-bed semi.
0:25:01 > 0:25:03# Be in a position to make me
0:25:03 > 0:25:08# Feel so damn unpretty... #
0:25:08 > 0:25:11OK, so it wasn't much of a looker, and it needed a bit of TLC
0:25:11 > 0:25:15to bring it up-to-date, but it also presented some good opportunities.
0:25:17 > 0:25:20OK, into the kitchen, which is a little bit small,
0:25:20 > 0:25:22but you could actually knock that wall down,
0:25:22 > 0:25:26have the diner and the kitchen all as one.
0:25:26 > 0:25:27Great family space.
0:25:27 > 0:25:29And that's exactly what Scott was thinking
0:25:29 > 0:25:32when he paid £63,000 at auction.
0:25:32 > 0:25:35He thought this could make a great family home, and he should know -
0:25:35 > 0:25:38he'd been looking for a while.
0:25:38 > 0:25:41About 11 years been looking for a house,
0:25:41 > 0:25:44and been renting for those 11 years,
0:25:44 > 0:25:47and when this house came up we saw it as an opportunity,
0:25:47 > 0:25:50because it could get us back on the housing ladder
0:25:50 > 0:25:52and hopefully put a little bit of equity in our pockets as well.
0:25:52 > 0:25:55So when I eventually won the auction,
0:25:55 > 0:25:59I did get a little bit emotional afterwards.
0:25:59 > 0:26:01What are you going to do to make it your home?
0:26:01 > 0:26:02How are you going to change it?
0:26:02 > 0:26:05Because we've been living in rental properties,
0:26:05 > 0:26:08rental properties tend to have beige carpets, magnolia walls,
0:26:08 > 0:26:10that kind of thing, and I think we're sick of looking at them.
0:26:10 > 0:26:14So were going to put a little bit of our own, erm...
0:26:14 > 0:26:17- Touch.- ..touch to it, yeah.
0:26:17 > 0:26:19# Now that we found love
0:26:19 > 0:26:22- # What are we gonna do - What are we gonna do
0:26:22 > 0:26:25- # With it? - With it?- Now... #
0:26:25 > 0:26:28Well, now he'd found it, what was Scott going to do
0:26:28 > 0:26:31to turn it into a family home he could love?
0:26:31 > 0:26:34He'd given himself £11,000 and seven weeks for the work.
0:26:34 > 0:26:36How did he get on?
0:26:40 > 0:26:42Well, after three months, we return to Consett
0:26:42 > 0:26:46to see what happened to Scott and his partner Andrea's new home.
0:27:01 > 0:27:03Well, this is far from the dated decor we saw last time,
0:27:03 > 0:27:05and it's not just superficial.
0:27:07 > 0:27:10Scott fixed the garage roof to stop the damp getting in,
0:27:10 > 0:27:14allowing him to completely remodel the kitchen, and it looks great.
0:27:16 > 0:27:20Well, in this space we used to have three separate rooms.
0:27:20 > 0:27:22We used to have a very small, pokey kitchen,
0:27:22 > 0:27:25and then there was a toilet, which we've taken out.
0:27:25 > 0:27:27We've opened it completely up.
0:27:27 > 0:27:30We've fitted a new kitchen, we have new laminate flooring,
0:27:30 > 0:27:34made a built-in fridge and larder storage.
0:27:34 > 0:27:36And this end of the room where they've been opened up
0:27:36 > 0:27:39has made a great family dining area.
0:27:40 > 0:27:43In the hallway, Scott's replaced the old banister
0:27:43 > 0:27:45with reclaimed spindles, which is safer for the children,
0:27:45 > 0:27:49and along with the new flooring, helps the hall feel spacious.
0:27:49 > 0:27:52Well, they've kept the decor neutral here. I do seem to recall
0:27:52 > 0:27:56that Scott and Andrea planned to put some colour into this property.
0:27:59 > 0:28:02We've lived in rented property for a number of years,
0:28:02 > 0:28:06so we decided that we were going to do something a little bit different.
0:28:06 > 0:28:11So it was kind of a joint decision between me and my partner.
0:28:11 > 0:28:14She made some decisions, especially about the children's room
0:28:14 > 0:28:20and our bedroom, but the rest of the house was kind of a joint decision.
0:28:20 > 0:28:25# Yes, we all need a room of our own... #
0:28:29 > 0:28:31I'm glad Scott and his family have really made it their own,
0:28:31 > 0:28:35and you can see it in a lot of details - from the safer staircase
0:28:35 > 0:28:38to the sturdy floor in the hall, this has been developed
0:28:38 > 0:28:40with a view to the family staying here for the long haul.
0:28:42 > 0:28:45Scott even decided to invest in solar panels.
0:28:46 > 0:28:49Well, I had done a little bit of research before we took
0:28:49 > 0:28:53the property, and realised that the back of the property
0:28:53 > 0:28:56was south-facing. So once I did the sums,
0:28:56 > 0:28:59it made sense as a long-term investment.
0:28:59 > 0:29:02# He's going the distance
0:29:02 > 0:29:04# He's going for speed
0:29:04 > 0:29:06# She's going the distance... #
0:29:08 > 0:29:10I think that's some good thinking.
0:29:10 > 0:29:13Solar panels, or photovoltaic cells as they can be known,
0:29:13 > 0:29:16reduce energy bills, and in some areas,
0:29:16 > 0:29:20electricity generated can even be sold back to the National Grid.
0:29:20 > 0:29:23The initial cost will have affected Scott's budget, though.
0:29:23 > 0:29:25So how did he get on?
0:29:27 > 0:29:30I think the original budget was 11.
0:29:30 > 0:29:32I was a little bit nervous about that.
0:29:32 > 0:29:37The budget, or the amount we've actually spent, is 16,000,
0:29:37 > 0:29:41but that does include an investment we've made in solar panels,
0:29:41 > 0:29:44which accounted for about 4,000 of that.
0:29:44 > 0:29:49That £16,000 spent also includes the cost of double glazing,
0:29:49 > 0:29:52which Scott has ordered, but still has to be installed.
0:29:52 > 0:29:54He's done a thorough job,
0:29:54 > 0:29:56but will two estate agents be impressed
0:29:56 > 0:29:58with his modernised family home?
0:29:58 > 0:30:01This has been done to a good standard inside.
0:30:01 > 0:30:04My favourite bit is the kitchen. The open-plan living area
0:30:04 > 0:30:08at the back of the property downstairs is much brighter,
0:30:08 > 0:30:10much more of an open feel.
0:30:10 > 0:30:14I think the family have done a great job with the renovations.
0:30:14 > 0:30:16The kitchen is absolutely great,
0:30:16 > 0:30:19and I could see that room now being very well used.
0:30:19 > 0:30:22So it's a good addition to the property.
0:30:22 > 0:30:25So far, this house has cost £16,000 to renovate
0:30:25 > 0:30:28on top of the 63 grand purchase price.
0:30:28 > 0:30:32So the family have spent a grand total of £79,000.
0:30:32 > 0:30:34Now, this is very much a family home.
0:30:34 > 0:30:36They aren't looking for an immediate return.
0:30:36 > 0:30:39But just for nosiness, what could the house make in rental?
0:30:41 > 0:30:44For the rental market, I would give it a valuation
0:30:44 > 0:30:48of £500-£525 per calendar month.
0:30:48 > 0:30:53Rental-wise, this property could achieve £500 per calendar month.
0:30:53 > 0:30:57That would mean a yield of around 7.5%.
0:30:57 > 0:31:00Now, they're definitely not going be selling,
0:31:00 > 0:31:02but hey, let's keep being nosy.
0:31:02 > 0:31:05In the sale market as it currently stands,
0:31:05 > 0:31:08I would give it a valuation of £85-£90,000.
0:31:08 > 0:31:11I do believe that in the current market,
0:31:11 > 0:31:14this property would achieve £85,000.
0:31:14 > 0:31:17Well, it's a property to live in
0:31:17 > 0:31:20and we've got no intention of selling, so I guess
0:31:20 > 0:31:24the valuations are a little bit meaningless,
0:31:24 > 0:31:27apart from the fact that it has put a little bit of equity.
0:31:27 > 0:31:30Given us a little bit of equity in the property,
0:31:30 > 0:31:32which kind of makes up for the rental -
0:31:32 > 0:31:34the time we've been renting.
0:31:34 > 0:31:38So Scott has potentially 11 grand of equity in his home,
0:31:38 > 0:31:41but more importantly, after an 11-year wait,
0:31:41 > 0:31:43his family have a home to call their own.
0:31:43 > 0:31:46And there are so many more important aspects to this
0:31:46 > 0:31:48than any potential profit.
0:31:51 > 0:31:53It's a perfect location for us.
0:31:53 > 0:31:56We've got all our family within about five minutes radius of us.
0:31:56 > 0:31:59We've got the school just a short walk down the road,
0:31:59 > 0:32:01and it's not far for me to go to work.
0:32:01 > 0:32:03So for us, it's the perfect property.
0:32:08 > 0:32:11Well, a perfect property is exactly what it's all about.
0:32:11 > 0:32:14So am I about to find one here in Beckenham,
0:32:14 > 0:32:16a suburb of south-east London?
0:32:16 > 0:32:18It has good links to the city centre,
0:32:18 > 0:32:21and today I've come to its high street.
0:32:21 > 0:32:24Now, this really is a rather busy road,
0:32:24 > 0:32:28but if you're one of the shop owners along this parade here,
0:32:28 > 0:32:31well, it's not necessarily a bad thing.
0:32:31 > 0:32:34Lots of potential customers passing by.
0:32:34 > 0:32:38And the good news is, I am here to see a shop -
0:32:38 > 0:32:40a former barber's, to be precise -
0:32:40 > 0:32:43together with two flats on the upper floors.
0:32:43 > 0:32:47Now, it had a guide price of £440,000,
0:32:47 > 0:32:50which is rather interesting, as last year,
0:32:50 > 0:32:52the two flats alone were on the market
0:32:52 > 0:32:58for a combined value of just under £475,000.
0:32:58 > 0:33:02This could be a rather trim guide price, don't you think?
0:33:11 > 0:33:13Well, my first impressions are -
0:33:13 > 0:33:16it's smaller than it looked from the outside.
0:33:16 > 0:33:19Quite a lot of glass work needs to be done in here.
0:33:19 > 0:33:22Things like a new shop frontage can be quite costly,
0:33:22 > 0:33:26so you know, that's something I'd be getting quotes on straight away,
0:33:26 > 0:33:28cos glass can be expensive.
0:33:28 > 0:33:33And it does tend to narrow down into the end here.
0:33:33 > 0:33:35Now, I know this was a barber's - I can see here,
0:33:35 > 0:33:38there's that shop awning, "Barber's" across the front.
0:33:38 > 0:33:41Whatever you put in here, bear in mind it could impact
0:33:41 > 0:33:43on the value of the flats above,
0:33:43 > 0:33:47so you've got to be really careful what you decide to do.
0:33:47 > 0:33:50Because the space isn't ideal, you've got a very wide frontage
0:33:50 > 0:33:54down one end and it certainly pinch points at the back.
0:33:54 > 0:33:58I suppose you could use this as a nail salon, an office, perhaps.
0:33:58 > 0:34:00So whoever takes this on has got to remember
0:34:00 > 0:34:02to think about all those things.
0:34:02 > 0:34:06Yes, there are decisions to be made and work to do
0:34:06 > 0:34:08before this place is ready to trade.
0:34:08 > 0:34:12But on the positive side, the shop does have toilet facilities.
0:34:12 > 0:34:15Now, what about those flats? Which, as I mentioned,
0:34:15 > 0:34:17together have been valued at not too much more
0:34:17 > 0:34:20than the guide price for this whole lot.
0:34:20 > 0:34:23So snap this up for anything like that guide price,
0:34:23 > 0:34:27and you could have a shop for free. Let's take a look.
0:34:27 > 0:34:29So into the first-floor flat, and I will mention,
0:34:29 > 0:34:33good security here, because you've got your own entrance downstairs
0:34:33 > 0:34:36and your flat entrance here, which is a real bonus.
0:34:36 > 0:34:39So, two bedrooms here. Not a bad-size double,
0:34:39 > 0:34:42another one down the end of the corridor, and the bathroom.
0:34:42 > 0:34:45And, well, it's incredibly spacious in here.
0:34:45 > 0:34:49I wasn't expecting this - a really, really nice,
0:34:49 > 0:34:52sunny, bright room with a massive window.
0:34:52 > 0:34:56Now, luckily - let's just check - yes, that's all double-glazed.
0:34:56 > 0:34:59You will have to think about some really nice blinds or curtains,
0:34:59 > 0:35:03cos you can see straight down there onto that very busy main road.
0:35:03 > 0:35:07But another feature I really like is this open-plan kitchen space,
0:35:07 > 0:35:10although it doesn't look like it's been fitted terribly well,
0:35:10 > 0:35:12so I'd have a little rejiggle with this space.
0:35:12 > 0:35:14There are things you need to do in this property,
0:35:14 > 0:35:17like the flooring - it's all starting to come up here,
0:35:17 > 0:35:21so you're probably going to have to have new carpets, new flooring.
0:35:21 > 0:35:24All the skirting boards are chipped, it needs a paint job.
0:35:24 > 0:35:27But you know, this could be quite quickly ready to go,
0:35:27 > 0:35:31and I imagine this would rent out really, really quickly.
0:35:31 > 0:35:34Up into the top-floor flat - well, it gets even better.
0:35:34 > 0:35:37Another two-bed, this one, but it's spick and span,
0:35:37 > 0:35:39and you wouldn't need to do anything at all.
0:35:39 > 0:35:41Surprisingly spacious as well,
0:35:41 > 0:35:45considering it's on the top floor in the eaves of the building.
0:35:46 > 0:35:49All in all, this is looking pretty good,
0:35:49 > 0:35:51and I haven't even finished yet.
0:35:51 > 0:35:53Out the back of the property,
0:35:53 > 0:35:57there's a sizeable car-parking space that could offer opportunity
0:35:57 > 0:36:01for expansion to the shop - subject to planning, of course.
0:36:01 > 0:36:04On the whole, I reckon this is an interesting lot,
0:36:04 > 0:36:07but what does the local estate agent think?
0:36:09 > 0:36:13The guide price of 440,000 for this property is very good,
0:36:13 > 0:36:15given that the two flats above
0:36:15 > 0:36:19could potentially generate even more than that.
0:36:19 > 0:36:21Let's talk valuations.
0:36:21 > 0:36:24Assuming these flats get a little TLC,
0:36:24 > 0:36:27what kind of rental income could they achieve?
0:36:28 > 0:36:30The first-floor flat, we could ask for a rental figure
0:36:30 > 0:36:33of £1,150 per calendar month,
0:36:33 > 0:36:38and on the top-floor flat, we would ask for £1,100 per calendar month.
0:36:39 > 0:36:41And to sell on?
0:36:41 > 0:36:45We would market the first-floor flat at £250,000
0:36:45 > 0:36:50and the top-floor flat at £240,000.
0:36:50 > 0:36:53As for the shop, our agent believes he could achieve
0:36:53 > 0:36:57£1,000 per calendar month in its current configuration
0:36:57 > 0:37:00or up to £1,250 per calendar month
0:37:00 > 0:37:03if you were to extend into the car park.
0:37:03 > 0:37:08He thinks the shop's current sale value would be £220,000,
0:37:08 > 0:37:12but again, could rise as high as £250,000
0:37:12 > 0:37:14were you to extend into the car park.
0:37:16 > 0:37:19Well, there's not too much work to do here,
0:37:19 > 0:37:21and you do get a lot of property for your money.
0:37:21 > 0:37:25In fact, it could even be three for the price of two!
0:37:25 > 0:37:29Who thought this former barber's and its flats were a cut above the rest?
0:37:29 > 0:37:32Let's find out when it went to auction.
0:37:33 > 0:37:36Mid-terrace building arranged as a ground-floor shop
0:37:36 > 0:37:39and residential upper parts. Well located.
0:37:39 > 0:37:41Who'd like to start me on this?
0:37:41 > 0:37:44400 anywhere?
0:37:44 > 0:37:46400 I've got.
0:37:46 > 0:37:49On the phone, 405 anywhere?
0:37:49 > 0:37:52405, thank you. 410?
0:37:54 > 0:37:57410. 415?
0:37:58 > 0:38:00415. 420...
0:38:00 > 0:38:03This lot was the subject of telephone interest
0:38:03 > 0:38:08as well as in the room. We rejoin the bidding at 446,000.
0:38:08 > 0:38:09446.
0:38:09 > 0:38:12New competition, 446.
0:38:12 > 0:38:13447.
0:38:15 > 0:38:18448, sir. 448.
0:38:18 > 0:38:20449.
0:38:20 > 0:38:23450, sir? 450.
0:38:23 > 0:38:24451.
0:38:25 > 0:38:27OK, have a think. It's with the gentleman here
0:38:27 > 0:38:30at the end of the row on my right. Anybody else?
0:38:30 > 0:38:33If not, 450 for the first,
0:38:33 > 0:38:35450 for the second,
0:38:35 > 0:38:38450 for the third and final time, all done?
0:38:39 > 0:38:41Sold, 450.
0:38:41 > 0:38:45And the successful bidder, paying 450,000, was Jag.
0:38:47 > 0:38:50Former accountant Jag has been a property investor
0:38:50 > 0:38:53for ten years now, and he lives just around the corner
0:38:53 > 0:38:57from his new purchase, so it was easy to meet up for a chat.
0:38:58 > 0:39:00- Congratulations, well done! - Thank you.
0:39:00 > 0:39:02- So you've bought a shop and two flats.- Yeah.
0:39:02 > 0:39:04Did you expect to get this on the day?
0:39:04 > 0:39:07Not really, because I was looking at other properties,
0:39:07 > 0:39:11but I thought there would be a lot more competition for this property.
0:39:11 > 0:39:13How do you feel about the price you paid?
0:39:13 > 0:39:17That was the exact price I was budgeting for,
0:39:17 > 0:39:20but I didn't think I was going to get it at that price,
0:39:20 > 0:39:23because the auction price was starting at 440.
0:39:23 > 0:39:28So, you know, I was very lucky to pull it in at 450.
0:39:28 > 0:39:30So really, just £10,000 over the guide price
0:39:30 > 0:39:34- for all this property.- Definitely. - Actually not bad.- No.
0:39:35 > 0:39:39However, it's not quite as cut and dried as that.
0:39:39 > 0:39:42Because the windows were damaged during the buying process,
0:39:42 > 0:39:45his loan became very complicated.
0:39:45 > 0:39:49So a bridging loan has cost him 25 grand - ouch!
0:39:52 > 0:39:55Jag does have a portfolio, and was an accountant,
0:39:55 > 0:39:58so it's reasonable to assume he's done the maths
0:39:58 > 0:40:02and still thinks it's all going to be OK.
0:40:02 > 0:40:05Now, Jag, I know you've got a background in accountancy.
0:40:05 > 0:40:08Is that what sort of led you into property in the first place?
0:40:08 > 0:40:11It was quite difficult to be in employment
0:40:11 > 0:40:15and try to buy properties and do them up,
0:40:15 > 0:40:17but I'm very pleased to move into property,
0:40:17 > 0:40:19because it gives me more time to spend with the family.
0:40:19 > 0:40:22I get to do get to do my school run for my son.
0:40:22 > 0:40:26So for me, it gives me a lot more spare time or free time
0:40:26 > 0:40:29to be with the family. I decide how to spend my time,
0:40:29 > 0:40:31whereas previously, somebody else was deciding that.
0:40:31 > 0:40:35So that's lovely for you. And do you feel much happier as a result?
0:40:35 > 0:40:37Definitely. Definitely more happy.
0:40:37 > 0:40:42# Oh, I gotta spend just a little more time with you
0:40:42 > 0:40:43# Yeah, yeah
0:40:43 > 0:40:46# That's why... #
0:40:46 > 0:40:48That's lovely - with property,
0:40:48 > 0:40:51sometimes there's more than just simple profit to be considered.
0:40:51 > 0:40:53So now that Jag is master of his own time,
0:40:53 > 0:40:56what does he intend to do with the property?
0:40:56 > 0:40:58What are you going to use the shop for?
0:40:58 > 0:41:01Something for yourself, or are you going to let it out?
0:41:01 > 0:41:05No, I will use it for myself. The plan is to move into an office,
0:41:05 > 0:41:08because I've been doing my work from home
0:41:08 > 0:41:11and my home is a mess with paperwork and files everywhere.
0:41:11 > 0:41:16So I'm hoping to move into the office and set up a letting agent.
0:41:16 > 0:41:21- Is this a new venture?- I've done all my lettings myself in the past.
0:41:21 > 0:41:23I've done it for over ten years,
0:41:23 > 0:41:27and I feel I can go down that route as a side business.
0:41:27 > 0:41:30- And do you feel confident? - Erm, not 100%,
0:41:30 > 0:41:33because I'm not sure how it's going to turn out to be.
0:41:33 > 0:41:35I mean, in my head I sort of know what I want,
0:41:35 > 0:41:38but whether it will work out that way or not, I'm not 100% sure yet.
0:41:38 > 0:41:40So what about the car park out the back?
0:41:40 > 0:41:43- Have you thought about extending? - I have looked at the space.
0:41:43 > 0:41:46There is great potential to do a double-storey extension
0:41:46 > 0:41:49if I get planning permission, or even a single storey extension,
0:41:49 > 0:41:51but I wouldn't touch that for now.
0:41:51 > 0:41:55I would just concentrate on the shop, get it up and ready,
0:41:55 > 0:41:59and then I'll think about the space at the back.
0:41:59 > 0:42:03Jag is being sensible, taking it in bite-sized chunks.
0:42:03 > 0:42:05He already has a tenant for the top-floor flat,
0:42:05 > 0:42:09so that's a cracking start. And he has a budget of £5,000
0:42:09 > 0:42:13to renovate the first-floor flat, and another five grand for the shop.
0:42:13 > 0:42:16He's feeling his way with the lettings business,
0:42:16 > 0:42:20but he has put himself in an ideal position.
0:42:20 > 0:42:23Do you feel, in a way, that you've got the shop for free
0:42:23 > 0:42:25with what you've done here?
0:42:25 > 0:42:27You know, you've got the chance to experiment with that business,
0:42:27 > 0:42:29almost, because you've got a free premises.
0:42:29 > 0:42:33Well, this is the great advantage - I'm under no pressure or obligation,
0:42:33 > 0:42:36finance costs, whatever, because the shop's sort of come in for free.
0:42:36 > 0:42:39So yes, I can take my time and do what I want,
0:42:39 > 0:42:42and if it doesn't work, I can always rent it out.
0:42:42 > 0:42:46- Jag, I'm really excited for you, congratulations. Well done. - Thank you very much.- Thank you.
0:42:46 > 0:42:50So, Jag choosing property over accountancy
0:42:50 > 0:42:53so he has a better lifestyle and more time with his son -
0:42:53 > 0:42:57that sounds like as good a reason as any to me.
0:42:57 > 0:42:59So he's got plenty of property experience,
0:42:59 > 0:43:04but he's never run his own lettings agency before. How will he get on?
0:43:04 > 0:43:07Join me later in the programme and you can find out.
0:43:11 > 0:43:13Well, that's one property done and dusted,
0:43:13 > 0:43:16- but what about the other two? - Yeah, there's been enough time,
0:43:16 > 0:43:19- but have THEY had enough time? - Let's find out.
0:43:25 > 0:43:28Time to return to New Normanton in Derby,
0:43:28 > 0:43:32where I was looking around this house guided at £75,000.
0:43:32 > 0:43:36It was a classic terrace layout, though it did have a surprise for me
0:43:36 > 0:43:39- and I don't mean the bright red kitchen.
0:43:39 > 0:43:43No, this terrace had four bedrooms.
0:43:43 > 0:43:47But to be fair, all of the bedrooms...nnngh...
0:43:47 > 0:43:49are really, really small.
0:43:58 > 0:44:01Yes, I thought there were too many bedrooms
0:44:01 > 0:44:04and that the house would be better off with three larger ones.
0:44:04 > 0:44:07However, Mahesh, who successfully bought the property
0:44:07 > 0:44:11for £77,500, had an alternative plan,
0:44:11 > 0:44:16as his friend, and experienced developer, Mayur explained.
0:44:16 > 0:44:19We were suggested this by the housing association
0:44:19 > 0:44:22who will be taking this property on a three-year lease from us.
0:44:22 > 0:44:25So did you just decide you wanted to rent to the housing association?
0:44:25 > 0:44:29- You approach them and say, "I've got a house you might be interested in." - That's exactly what it is, yes.
0:44:29 > 0:44:31So we've been in touch with them,
0:44:31 > 0:44:33and they are interested, and this is particularly
0:44:33 > 0:44:35because it's a four-bedroom house,
0:44:35 > 0:44:37they are a lot more interested in that.
0:44:41 > 0:44:44Mahesh had a budget of £2-3,000,
0:44:44 > 0:44:46and a timescale of three to four weeks
0:44:46 > 0:44:49to update the house and make sure it complied
0:44:49 > 0:44:53with all of the housing association's safety regulations.
0:44:53 > 0:44:58There didn't seem much to do, but then, four weeks isn't a long time.
0:45:02 > 0:45:04Five weeks later, and we've returned to see
0:45:04 > 0:45:08if it has become a fabulous four-bed family home.
0:45:15 > 0:45:17Can you spot the difference?
0:45:17 > 0:45:20Because, let's be honest, it's quite difficult to tell.
0:45:20 > 0:45:23But then, not much needed changing.
0:45:23 > 0:45:27We caught up with Mahesh and Mayur to find out what's going on.
0:45:27 > 0:45:31We've had the carpet guys putting in the carpets and the underlay.
0:45:31 > 0:45:33We've also had the double glazing guys
0:45:33 > 0:45:36putting in four windows at the back, a door at the back,
0:45:36 > 0:45:39double glazing door at the front and one in bathroom upstairs.
0:45:39 > 0:45:41And finally, we had a carpenter guy
0:45:41 > 0:45:46who's made good the cupboard upstairs in the smaller bedroom.
0:45:46 > 0:45:50We still have some outstanding work on the kitchen,
0:45:50 > 0:45:54which is probably going to take another week or so.
0:45:54 > 0:45:59We need to put one or two new units in there.
0:45:59 > 0:46:03And once that's done, then the house will be ready.
0:46:04 > 0:46:06The new carpets make a world of difference,
0:46:06 > 0:46:10and you can bet when the winter comes, that double glazing will too.
0:46:10 > 0:46:14As Mahesh says, they still have work to do in the kitchen,
0:46:14 > 0:46:17but apparently adding a door isn't on the cards any more.
0:46:17 > 0:46:22Initially we were thinking of separating the dining area
0:46:22 > 0:46:26from the kitchen, just for the safety aspects,
0:46:26 > 0:46:29but then we came to realise that by doing that
0:46:29 > 0:46:33we're obviously going to just make the dining room look a bit smaller,
0:46:33 > 0:46:37so we just left it as a kind of kitchen diner, as one thing.
0:46:37 > 0:46:41And that also kind of saved us some money as well.
0:46:41 > 0:46:43Well, that's interesting.
0:46:43 > 0:46:45The door had been suggested initially
0:46:45 > 0:46:49by the housing association, with whom the guys wanted to work.
0:46:49 > 0:46:51Has the plan changed?
0:46:51 > 0:46:55We did plan to lease it out to a housing association
0:46:55 > 0:46:57on a three year lease. Having said that,
0:46:57 > 0:46:59what we're planning now is to lease it out directly.
0:46:59 > 0:47:04We realised that we can get something like £30-£40 a month more for that,
0:47:04 > 0:47:08and if you total that up, if it's £40 a month, that's nearly £500 a year.
0:47:08 > 0:47:11So rather than leasing out to a housing association,
0:47:11 > 0:47:14we're going to be getting a lot more money going directly.
0:47:17 > 0:47:21# You can go your own way
0:47:21 > 0:47:23# Go your own way... #
0:47:23 > 0:47:26Well, I can certainly see the advantages.
0:47:26 > 0:47:30The housing association take a monthly administration fee,
0:47:30 > 0:47:34so Mahesh and Mayur will gain that by dealing directly with clients -
0:47:34 > 0:47:37and that's about £500 per year.
0:47:37 > 0:47:42However, the deal with the housing association also guaranteed tenancy,
0:47:42 > 0:47:45so without that deal, all it will take is the house being vacant
0:47:45 > 0:47:49for a month and that profit of £500 is gone.
0:47:50 > 0:47:53Still, as they both say, it did help keep the costs down.
0:47:53 > 0:47:55So, what have they spent?
0:47:57 > 0:48:02Altogether so far we have spent something like £2,800.
0:48:02 > 0:48:06We are likely to spend another £200, maybe £300.
0:48:06 > 0:48:11So the budget overall, the spend is going to be £3,100.
0:48:13 > 0:48:17Added to the £77,500 that Mahesh paid at auction,
0:48:17 > 0:48:21that brings his total spent to £80,600.
0:48:21 > 0:48:24We've asked along two local property experts
0:48:24 > 0:48:27to find out what they think of his investment.
0:48:27 > 0:48:30You've got a standard terraced house, but it's four bedrooms,
0:48:30 > 0:48:34and that's a fairly unusual animal. Not only is it four bedrooms,
0:48:34 > 0:48:36but you've actually got two shower or bathrooms as well.
0:48:36 > 0:48:38I think if this property's put on the market,
0:48:38 > 0:48:40I think it'd be popular with a buy-to-let investor.
0:48:40 > 0:48:44The amount of bedrooms would make it easy to rent
0:48:44 > 0:48:47to maybe somebody that couldn't quite afford
0:48:47 > 0:48:50your traditional four-bedroom property.
0:48:50 > 0:48:53It sounds like there's a good demand in this area
0:48:53 > 0:48:56for a reasonably priced house with four bedrooms.
0:48:56 > 0:49:01Our experts recommended a sale value of between £80,000 and £84,000,
0:49:01 > 0:49:04but Mahesh has always intended on letting it.
0:49:04 > 0:49:08So what are those crucial rental valuations?
0:49:08 > 0:49:11It's got a rental income upwards of £600 a calendar month.
0:49:11 > 0:49:14You might even get £625 a calendar month.
0:49:14 > 0:49:16If this property was on the open market,
0:49:16 > 0:49:22I would look at between £500 and £550 per calendar month.
0:49:22 > 0:49:27I think we probably are going to get something like 650,
0:49:27 > 0:49:31maybe £660, around that sort of mark.
0:49:31 > 0:49:33But can't really tell.
0:49:35 > 0:49:38Mahesh and Mayur are hopeful of getting that figure
0:49:38 > 0:49:41of £650 per calendar month,
0:49:41 > 0:49:43giving them a yield of over 9%.
0:49:43 > 0:49:46So what's next for this property team?
0:49:48 > 0:49:51- Next auction, I guess. - Yeah, definitely.
0:49:51 > 0:49:54I think we also keep an eye on all the auctions.
0:49:54 > 0:49:58And once we are free with this property -
0:49:58 > 0:50:01and there are one or two other projects which Mayur
0:50:01 > 0:50:04is currently working on - once they are over,
0:50:04 > 0:50:07then we'll definitely be out again.
0:50:18 > 0:50:21We're back in Beckenham, south-east London,
0:50:21 > 0:50:25where there was one lot with a guide price of 440,000 -
0:50:25 > 0:50:28but three properties within that lot.
0:50:30 > 0:50:33# 1-2-3
0:50:33 > 0:50:36# 1-2-3
0:50:36 > 0:50:39- # It's easy - It's so easy... #
0:50:39 > 0:50:44Yes, on sale was a shop and the two two-bedroom flats above.
0:50:44 > 0:50:49There was also parking at the back, giving room for a future extension.
0:50:52 > 0:50:57The successful purchaser was Jag, with a bid of 450,000.
0:50:57 > 0:51:01Jag was a former accountant who had moved into property investment
0:51:01 > 0:51:04in order to allow greater flexibility in his working hours.
0:51:05 > 0:51:08It gives me more time to spend with the family.
0:51:08 > 0:51:11I get to do get to do my school run for my son.
0:51:11 > 0:51:15So for me, it gives me a lot more spare time or free time
0:51:15 > 0:51:17to be with the family.
0:51:17 > 0:51:20The shop offered Jag a new opportunity
0:51:20 > 0:51:22to start a property letting business,
0:51:22 > 0:51:25and the two flats he intended to rent out.
0:51:25 > 0:51:29The top flat was ready to go, and Jag had secured a tenant.
0:51:29 > 0:51:30But the other needed some work,
0:51:30 > 0:51:33and the office needed a complete overhaul.
0:51:33 > 0:51:36He had a budget of £5,000 for each of them,
0:51:36 > 0:51:40and a timescale of a month to get the business up and running.
0:51:47 > 0:51:52Four weeks later, and we've returned to see how Jag got on.
0:52:08 > 0:52:11Jag already had an offer to rent the upper flat
0:52:11 > 0:52:13when we first visited, and true enough,
0:52:13 > 0:52:16a family have moved in and made it their home.
0:52:18 > 0:52:21On the first floor, having checked the gas and the electrics,
0:52:21 > 0:52:26Jag gave the flat a coat of paint, and it now also has its own tenants.
0:52:26 > 0:52:30But it's downstairs in the shop where the biggest changes have come.
0:52:30 > 0:52:33There'll be no more short back and sides in here - instead,
0:52:33 > 0:52:35Jag has a refurbished office and loo,
0:52:35 > 0:52:39and - I'm glad to say - some new windows.
0:52:39 > 0:52:41Yeah, this is the front of the shop,
0:52:41 > 0:52:44which was smashed when we first bought the property.
0:52:44 > 0:52:46We've had the new shop front put in,
0:52:46 > 0:52:50and we've put the grill also for added security.
0:52:53 > 0:52:56Jag's two-week timescale has just passed.
0:52:56 > 0:52:58The flats are rented, and he just has to move furniture
0:52:58 > 0:53:01into the office and it should be ready to go.
0:53:01 > 0:53:03Things are looking good.
0:53:03 > 0:53:06The letting agent will be up and running in a week's time,
0:53:06 > 0:53:10and I've already had one enquiry with a landlord passer-by
0:53:10 > 0:53:12who asked when I would open,
0:53:12 > 0:53:15and he's got a house for me to rent for him already.
0:53:15 > 0:53:18So I'm hoping to pick up that business next week.
0:53:18 > 0:53:20Well, that all sounds promising.
0:53:20 > 0:53:23But Jag left his full-time job in accountancy
0:53:23 > 0:53:25not just for the financial benefits of property,
0:53:25 > 0:53:28but also to improve his family life.
0:53:28 > 0:53:31I have had a lot of time to spend with my family,
0:53:31 > 0:53:35doing the school run and spending more time with my son.
0:53:35 > 0:53:39With all the paperwork lying in my house at the moment,
0:53:39 > 0:53:41once the office is finished next week,
0:53:41 > 0:53:44I can move everything over to the office, and my wife will be
0:53:44 > 0:53:47very happy to not have paperwork everywhere in the house.
0:53:47 > 0:53:50# And I've been taking care of business
0:53:50 > 0:53:51# It's all mine
0:53:51 > 0:53:55# Taking care of business and working overtime
0:53:55 > 0:53:56# Work out... #
0:53:57 > 0:54:00Jag has never developed a commercial property,
0:54:00 > 0:54:05so was unsure about costs. Did he manage to stick to his budget?
0:54:05 > 0:54:09We spent £2,500 on the first-floor flat.
0:54:09 > 0:54:12That was mainly to do the painting and the decoration.
0:54:12 > 0:54:15The original budget for the shop was £5,000.
0:54:15 > 0:54:18We went over it by 50%,
0:54:18 > 0:54:21because I couldn't anticipate the cost of the shop front.
0:54:21 > 0:54:26I've managed to spend 7,500 to refurbish the shop.
0:54:26 > 0:54:28Overall, the budget is still 10,000,
0:54:28 > 0:54:31so I've managed to keep the overall budget the same.
0:54:33 > 0:54:36Jag spent £450,000 on the property at auction,
0:54:36 > 0:54:39and only ten grand on the development.
0:54:39 > 0:54:41However, he also had to get a bridging loan,
0:54:41 > 0:54:44and that cost him £25,000.
0:54:45 > 0:54:48We've asked along two local estate agents
0:54:48 > 0:54:50to see if they think it's all been worth it.
0:54:50 > 0:54:52The shop's really nicely done.
0:54:52 > 0:54:54It's been well painted, good hard floor down.
0:54:54 > 0:54:56So wear and tear will be good in the shop,
0:54:56 > 0:54:58so it's a good investment.
0:54:58 > 0:55:00In terms of the flats, I was very, very impressed.
0:55:00 > 0:55:02They're nice flats, very nicely done.
0:55:02 > 0:55:06At the moment, there seems to be a shortage of commercial properties
0:55:06 > 0:55:09in the locality, so you know,
0:55:09 > 0:55:12that's a strength when it comes to selling.
0:55:12 > 0:55:16If there's not much around then you can push the boat out on price.
0:55:17 > 0:55:23Including the bridging loan, Jag has spent a total of £485,000.
0:55:23 > 0:55:27Both agents thought the shop would rent for £1,000 per calendar month.
0:55:27 > 0:55:30So what do they think the flats could rent for?
0:55:30 > 0:55:35We would ask for around £1,100 per calendar month per unit.
0:55:35 > 0:55:38In terms of the rentals for the flats, for each of them separately
0:55:38 > 0:55:41they'd get £1,100 per calendar month.
0:55:42 > 0:55:45Those valuations mean that Jag will get a yield
0:55:45 > 0:55:49of nearly 5.5% on the flats alone,
0:55:49 > 0:55:51and he still has a shop to run his business from.
0:55:51 > 0:55:54As for the resale valuations, one agent
0:55:54 > 0:55:57thought the flats were worth 250,000 each,
0:55:57 > 0:56:02while the other pitched them a little lower at £225,000.
0:56:02 > 0:56:08That upper valuation would mean a potential resale totalling £500,000.
0:56:08 > 0:56:14So if you take away his £485,000 spend, he has a shop for free.
0:56:14 > 0:56:17If you throw the top valuations in for the shop,
0:56:17 > 0:56:20he could sell the lot for 750 grand.
0:56:21 > 0:56:25I'm very excited with the valuation given.
0:56:25 > 0:56:28It's a lot more than I expected,
0:56:28 > 0:56:32so buying it for 450,000
0:56:32 > 0:56:35and potentially could sell at 750 -
0:56:35 > 0:56:38it's very good news, all the way round.
0:56:38 > 0:56:41That upper total of £750,000
0:56:41 > 0:56:46would give Jag a total profit of 275,000.
0:56:47 > 0:56:49Now, this is where we always say,
0:56:49 > 0:56:52"Minus the usual taxes and expenses,"
0:56:52 > 0:56:54and you probably don't think too much about it.
0:56:54 > 0:56:58But you should always remember that it's there, and here's why.
0:56:58 > 0:57:01Yeah, the legal fees for a semicommercial
0:57:01 > 0:57:04is quite different from a residential.
0:57:04 > 0:57:06It's a lot more expensive. For example,
0:57:06 > 0:57:08I had a quote of £500 originally.
0:57:08 > 0:57:10The minute I mentioned semicommercial,
0:57:10 > 0:57:12the price went up to £1,500.
0:57:12 > 0:57:16The total legal costs is in the region of about 20,000,
0:57:16 > 0:57:20which includes stamp duty of about 15,000.
0:57:21 > 0:57:24Now, while commercial property has some differences,
0:57:24 > 0:57:27there are all sorts of fees in residential
0:57:27 > 0:57:29to keep your eyes peeled for too -
0:57:29 > 0:57:32stamp duty, legal fees, planning fees,
0:57:32 > 0:57:35and of course personal tax, to name but a few.
0:57:35 > 0:57:36Remember to do your homework
0:57:36 > 0:57:39and make sure they're in your calculations.
0:57:39 > 0:57:42Anyway, onwards with the new business for Jag,
0:57:42 > 0:57:46and it sounds like he might be at the auctions again soon.
0:57:46 > 0:57:50Auction is the way forward for me, purely because I go there
0:57:50 > 0:57:52and I get the property I want on that day.
0:57:55 > 0:57:58We'll see you next time when we've got more auction stories.
0:57:58 > 0:58:01- Yes, more properties to inspire you. - Yes, here on Homes Under The Hammer.
0:58:01 > 0:58:03- Goodbye.- Goodbye.- Goodbye.