0:00:00 > 0:00:02Hello and welcome to the show.
0:00:02 > 0:00:06- Now we three - just like you, love the idea of grabbing a bargain.- Yes.
0:00:06 > 0:00:08It's not always easy in today's competitive market.
0:00:08 > 0:00:10No, but one way you can stand a good chance
0:00:10 > 0:00:13is by visiting your local property auction.
0:00:38 > 0:00:42Well, buying under the hammer has always been popular
0:00:42 > 0:00:45but choose well, and you could get yourself a really good investment.
0:00:45 > 0:00:48Yes. I wonder if the bidders on today's show managed to do just that.
0:00:48 > 0:00:51Let's take a look at what they bought.
0:00:51 > 0:00:53In Earlsfield, London,
0:00:53 > 0:00:56a spacious one-bedroom flat is straight out of the '70s.
0:00:56 > 0:00:58You've just got to love this yellow wallpaper.
0:00:58 > 0:01:01It's nearly come back into fashion.
0:01:02 > 0:01:07While in Wombourne near Wolverhampton, a three-bed semi takes me back to the '80s.
0:01:07 > 0:01:10Two types of wallpaper. Haven't seen that in some time.
0:01:12 > 0:01:14And in Ynyswen, Wales,
0:01:14 > 0:01:17this two-bed has features that don't belong in any era.
0:01:17 > 0:01:20What's that? It's a rabbit hutch!
0:01:23 > 0:01:25All these properties were brought at auction.
0:01:25 > 0:01:26We'll find out who got them
0:01:26 > 0:01:30and how much they paid when these homes went under the hammer.
0:01:30 > 0:01:31Sold.
0:01:39 > 0:01:44Welcome to Earlsfield, a part of south-west London that is very well positioned.
0:01:46 > 0:01:50Earlsfield used to be thought of as a place that was
0:01:50 > 0:01:53a bit stuck in the middle - not quite Wimbledon,
0:01:53 > 0:01:55and not quite Wandsworth
0:01:55 > 0:01:58but with the overspill of people being priced out of both
0:01:58 > 0:02:02of those areas, Earlsfield is increasingly becoming very popular.
0:02:05 > 0:02:09# I'm a little lost, in a spin... #
0:02:12 > 0:02:14It comes under the London Borough of Wandsworth
0:02:14 > 0:02:18and the area has its own plentiful selection of shops
0:02:18 > 0:02:21and amenities and the local railway station can take you to
0:02:21 > 0:02:23central London in only 12 minutes.
0:02:26 > 0:02:29The property I'm here to see is on this busy main road,
0:02:29 > 0:02:34full of shops and restaurants and traffic.
0:02:34 > 0:02:37It's a one-bedroom flat in this converted mid-terrace property.
0:02:37 > 0:02:41Now, it had a guide price at auction of £275,000.
0:02:41 > 0:02:45It's on the second floor, so there are a few stairs to climb first.
0:02:51 > 0:02:55Being two floors up means the access isn't ideal for everyone
0:02:55 > 0:02:59but let's be positive. Oh, this flat's a good 'un!
0:02:59 > 0:03:03Straight away, I love the fact that you've got these high ceilings,
0:03:03 > 0:03:06this character here. It goes right the way back.
0:03:06 > 0:03:08Look at this lovely staircase. Fantastic.
0:03:08 > 0:03:10There's a lot you could do with a place like this.
0:03:10 > 0:03:12You've got a separate loo and bathroom,
0:03:12 > 0:03:17so you could knock those into one, so straight away, you're just adding, adding, adding
0:03:17 > 0:03:19to a property like this.
0:03:19 > 0:03:22And the kitchen, right at the back - now, not a bad space at all.
0:03:22 > 0:03:26I think one of the good things is you can get a little table along here, so you could sit down
0:03:26 > 0:03:31and eat in this kitchen but currently, it's just a bit dated.
0:03:31 > 0:03:35It's dirty. It's a dump. But it does have potential.
0:03:40 > 0:03:44Hmm. It's been a while since this kitchen was anyone's dream
0:03:44 > 0:03:47but new units and flooring will fix it.
0:03:47 > 0:03:51# I'm going to make you make it better
0:03:51 > 0:03:55# I'm going to get the best and lock it up and swallow the key. #
0:03:57 > 0:04:00You've just got to love this yellow wallpaper.
0:04:00 > 0:04:02It's nearly come back into fashion. Right, where are we?
0:04:02 > 0:04:04So we've got a single bedroom.
0:04:04 > 0:04:06Actually, I think you could call that a double.
0:04:06 > 0:04:09You'd easily get a double bed in there and right at the front
0:04:09 > 0:04:13of the property, you've got the sitting room, a great space,
0:04:13 > 0:04:17really lovely high ceilings but the only problem - it's quite noisy.
0:04:17 > 0:04:21All the London traffic is humming away outside those little
0:04:21 > 0:04:23single panes of glass.
0:04:23 > 0:04:25So you'd have to exchange those for something a little more
0:04:25 > 0:04:28efficient, I think but I'm just wondering -
0:04:28 > 0:04:31I don't think this is the best use of space.
0:04:31 > 0:04:36I think you could possibly move the kitchen
0:04:36 > 0:04:39right the way down the end of the hallway and bring it up here.
0:04:39 > 0:04:40This is such a big room, it can take it.
0:04:40 > 0:04:43You can put all the units along the back here, even
0:04:43 > 0:04:47think about incorporating a little bit of this space on the landing.
0:04:47 > 0:04:49You can even move the doorway to that bedroom
0:04:49 > 0:04:53down a little bit, so you'd just open this whole place up.
0:04:53 > 0:04:56Then you'd free the kitchen up and you'd make that
0:04:56 > 0:05:00into a bedroom, turning this into a two-bedroom flat, so you'd be
0:05:00 > 0:05:05increasing the value of the property by not adding any square footage.
0:05:05 > 0:05:07Win-win!
0:05:08 > 0:05:12You would of course have to ensure that any work like this meets
0:05:12 > 0:05:14the building regulations.
0:05:14 > 0:05:16Or another option - being the second floor,
0:05:16 > 0:05:21above us is the roof space, so what about a loft conversion?
0:05:21 > 0:05:25Now, you'd have to check the pitch of the roof to see if it's feasible
0:05:25 > 0:05:29but before that, you'd have to check if you actually owned the space.
0:05:29 > 0:05:33Check the deeds and the legal pack, because the loft up there,
0:05:33 > 0:05:37it could actually still belong to the freeholder and not to you.
0:05:41 > 0:05:45This is a leasehold flat with 125 years left
0:05:45 > 0:05:48but any plans to swap that kitchen round or go into the loft will
0:05:48 > 0:05:52have to comply with the terms of the lease and then there's the sums.
0:05:52 > 0:05:55We asked an agent what he thought of this flat,
0:05:55 > 0:06:00guided at 275,000, could be worth in its various configurations.
0:06:01 > 0:06:05As a one-bed, I would value this property after refurbishment
0:06:05 > 0:06:09at £450,000.
0:06:09 > 0:06:13As a two-bed, with the conversion of the kitchen into the second
0:06:13 > 0:06:20bedroom, I would value this at £525,000 and with the conversion up
0:06:20 > 0:06:21into the loft,
0:06:21 > 0:06:24you'd be looking at a valuation around about
0:06:24 > 0:06:29the £550-560,000.
0:06:29 > 0:06:32Assuming the flat's modernised to a good standard,
0:06:32 > 0:06:36the agent recommended asking for £1,400 per calendar month
0:06:36 > 0:06:41if it stays as a one-bedroom flat or 1,800 if it's changed to two.
0:06:44 > 0:06:47Well, with this flat, I think there's lots of room to add value.
0:06:47 > 0:06:49You could just refurbish what's here
0:06:49 > 0:06:53and make the best of what you've got, or I think a better option
0:06:53 > 0:06:58is to change the layout, change that kitchen into a second bedroom.
0:06:58 > 0:07:02So let's see who fancied this flat at the auction.
0:07:02 > 0:07:05Really good location. You're near the station and shops.
0:07:05 > 0:07:09Who'd like kick-off on this,
0:07:09 > 0:07:14200 anywhere? 200. 205 anywhere? 205. 210.
0:07:14 > 0:07:16215.
0:07:17 > 0:07:22215 on the phone. You should be here. 220. 225.
0:07:24 > 0:07:26255 with you.
0:07:26 > 0:07:31As you can see, the bidding from the phone was, well, a little slow.
0:07:31 > 0:07:34But once it moved into the room, the price shot up.
0:07:35 > 0:07:39We rejoined the bidding at 350,000.
0:07:39 > 0:07:45350. 351. 352. 353.
0:07:45 > 0:07:50354. 355. 357, 358.
0:07:50 > 0:07:54He's nodding like one of those dogs in the back of the car.
0:07:54 > 0:07:58358. Yes.
0:07:59 > 0:08:01Another go?
0:08:01 > 0:08:09358, back in. 359. 360. Just round it off to 360. You never know. Yeah.
0:08:09 > 0:08:12360.
0:08:12 > 0:08:16361. Sorry, 362. 361.
0:08:16 > 0:08:23First time, second time, third and last time if you're all done.
0:08:23 > 0:08:25Sold. 361. Sorry, madam.
0:08:26 > 0:08:28That determined bidder was Mahmoud.
0:08:32 > 0:08:35Mahmoud is a technician for the media industry
0:08:35 > 0:08:38and with his successful bid of 361,000,
0:08:38 > 0:08:42this becomes his first property bought purely as an investment.
0:08:42 > 0:08:46I met up with him and his wife to find out their plans.
0:08:46 > 0:08:50Mahmoud and Lami, lovely to meet you both today. Congratulations.
0:08:50 > 0:08:52- Thank you. - This is a great opportunity.
0:08:52 > 0:08:55And there is so much you can do with this property.
0:08:55 > 0:08:57I'm really intrigued to find out how you both see it
0:08:57 > 0:09:00and what you both think you ought to do here.
0:09:01 > 0:09:06I'm trying to convert the flat into two bedrooms
0:09:06 > 0:09:10and the flat needs throughout refurbishment, kitchen,
0:09:10 > 0:09:14central heating and everything, more or less,
0:09:14 > 0:09:16because, I don't know, it's been neglected.
0:09:16 > 0:09:20- So, Lami, what do you think?- Yeah. I think we'll do a fantastic job.
0:09:20 > 0:09:22I can see it already, really.
0:09:22 > 0:09:25- With a bit of his touch and an obsession with tiles...- Yeah.
0:09:25 > 0:09:28Yeah, we have both a bit of an obsession there.
0:09:28 > 0:09:31Let me into the secret. What do you mean, an obsession with tiles?
0:09:31 > 0:09:35- I think we both have. We both do, don't we? We both like tiles, so um...- Yeah, I like tiles a lot.
0:09:35 > 0:09:38I think we'll be adding some of our touch in the place.
0:09:38 > 0:09:40I think judging by you two, it's going to be a good job.
0:09:40 > 0:09:42I think...I hope so. I hope so.
0:09:42 > 0:09:45- If you don't add too many quirky little things in.- I hope so, yeah.
0:09:45 > 0:09:47Can we talk about that? Lami, how quirky is he? Like what?
0:09:47 > 0:09:50Like what would he add that's too quirky?
0:09:50 > 0:09:54He might find a bit of a tree outside and bring it inside and...
0:09:54 > 0:09:58- Oh, my...!- Decide to add that as a piece of art.
0:09:58 > 0:10:00OK, Mahmoud, don't get too personal. Lucy tip.
0:10:00 > 0:10:02Don't get too personal with this.
0:10:02 > 0:10:05- No, I mean, I have ideas but I'm not going to tell you. Tell me!- No.
0:10:05 > 0:10:07You have to tell me. That's what you're here for.
0:10:07 > 0:10:11- Until you come again, and you will see and say, "Oh, wow!" - He's got a few surprises, obviously.
0:10:11 > 0:10:16- "Mahmoud, I like your ideas. I think I'm going to need you in the future." - Now, that is just cheating, Mahmoud.
0:10:16 > 0:10:18You're supposed to tell me.
0:10:18 > 0:10:23- And then I'm supposed to come back and say well done!- Surprise!
0:10:23 > 0:10:28# Tell her about it, tell her everything you feel
0:10:28 > 0:10:32# Give her every reason to accept that you're for real... #
0:10:34 > 0:10:38Yeah, come on, Mahmoud. Let me know what your plans are.
0:10:38 > 0:10:40Well, I'm getting nowhere with this.
0:10:40 > 0:10:44Let's sneak back and find out what his ideas are
0:10:44 > 0:10:46for the more major changes.
0:10:46 > 0:10:49So you mentioned to me you'd like to turn this into a two-bed flat.
0:10:49 > 0:10:53- How you going to do that?- I can...
0:10:53 > 0:10:56The kitchen, I can knock the wall and make it a through kitchen,
0:10:56 > 0:11:00living room, but I can see that living room's going to be small.
0:11:00 > 0:11:03Having looked around myself, I think
0:11:03 > 0:11:07the best option would be to bring the kitchen, that's currently the kitchen,
0:11:07 > 0:11:11into this room and free up what is now the kitchen as a bedroom.
0:11:11 > 0:11:12And then you'll have...
0:11:12 > 0:11:15You could even have an en-suite, so maybe have two bathrooms,
0:11:15 > 0:11:18cos that'll be quite a good-sized bedroom, so you could
0:11:18 > 0:11:22maybe have a nice shower room and loo in that master bedroom.
0:11:22 > 0:11:25So that would really, you know, make this a top-end flat.
0:11:25 > 0:11:28That's a good idea, to be honest. I'd never thought about it.
0:11:28 > 0:11:31I think if you're doing it, you might as well do it.
0:11:31 > 0:11:34I mean, don't forget, we have the loft as well,
0:11:34 > 0:11:37but that loft is not... Still belongs to the freeholder.
0:11:37 > 0:11:40I'm going to leave the loft to whoever wants to buy it.
0:11:40 > 0:11:45It's another potential for them, so to...
0:11:45 > 0:11:49Yeah, to convert it to another bedroom with an en-suite, so, yeah.
0:11:49 > 0:11:52How long do you think it's going to take you guys to get the work done?
0:11:52 > 0:11:57Well, because I might go with your plans,
0:11:57 > 0:12:01it's going to hold my contractor, which he's going to start tomorrow.
0:12:01 > 0:12:03For now, have I just put a little spanner in the works?
0:12:03 > 0:12:07- Absolutely, absolutely. Now you make me basically...- But listen.
0:12:07 > 0:12:10- Hold my horses.- That's what I'm here for. To make you hold your horses.
0:12:10 > 0:12:11Ah, thank you very much.
0:12:14 > 0:12:17Lucy Alexander, schedule destroyer!
0:12:17 > 0:12:19Yes, if they follow my suggestion,
0:12:19 > 0:12:22Mahmoud and Lami will need a bit longer than their plan of six
0:12:22 > 0:12:25to eight weeks, but they have a healthy budget of 35,000
0:12:25 > 0:12:31and Lami's ready to get involved too, reluctantly.
0:12:31 > 0:12:33Well, she's going to be my project manager.
0:12:33 > 0:12:35- I'm going to be very busy with my work.- I'll be here.
0:12:35 > 0:12:38So I'm just going to call her and tell her what to do.
0:12:38 > 0:12:40- So I'll be up and down, really. - Yes.- And just make sure...
0:12:40 > 0:12:43- Basically, he's just handing it over to you.- Yes. Yeah.
0:12:43 > 0:12:45Not exactly what I wanted.
0:12:46 > 0:12:51This is more of his project than mine but, yeah, I'll be watching it
0:12:51 > 0:12:54over and making sure those builders aren't taking too many tea breaks!
0:12:54 > 0:12:56Look, I'm really excited to see the outcome of this.
0:12:56 > 0:12:59I think you've got a great property in this still up-and-coming area.
0:12:59 > 0:13:03- Yes.- So congratulations.- Thank you very much.- Good luck.- Thank you.
0:13:04 > 0:13:07So lots of options and lots of decisions I had for Mahmoud
0:13:07 > 0:13:09and Lami.
0:13:09 > 0:13:11Will we come back to a two-bedroom,
0:13:11 > 0:13:15two-bathroom beautifully tiled flat with a tree?
0:13:15 > 0:13:19Oh, yes - Mahmoud has promised us so many surprises.
0:13:19 > 0:13:22Join us later in the programme and you can find out what they are.
0:13:29 > 0:13:33Four miles from Wolverhampton is the village of Wombourne.
0:13:33 > 0:13:35It might look quiet and picturesque, but during the
0:13:35 > 0:13:39Industrial Revolution, it was a major producer of nails.
0:13:40 > 0:13:43Nails and hammers - sounds like a perfect mix.
0:13:44 > 0:13:48The property I'm here to see is on this peaceful residential estate.
0:13:48 > 0:13:50Now this is a three-bed, mid-terrace,
0:13:50 > 0:13:54with a guide price of £100-105,000.
0:13:54 > 0:13:58I'm going to have a closer look.
0:13:58 > 0:14:01Outside, very presentable and a relatively modern home.
0:14:01 > 0:14:02Is it the same inside?
0:14:05 > 0:14:11OK. A bit of a small porchway here. I will come back to that later.
0:14:11 > 0:14:15Straight into the lounge area, which is a little bit dated.
0:14:15 > 0:14:17Two types of wallpaper. I haven't seen that in some time.
0:14:17 > 0:14:23You've got a fireplace over there. No fire. And one of these false...
0:14:23 > 0:14:27Yes, false arches into a small dining area here.
0:14:27 > 0:14:31You'd get a small table and chairs there and the kitchen is here -
0:14:31 > 0:14:35which is small but there's enough size in there to turn.
0:14:35 > 0:14:40A bit of TLC, maybe freshen that up a little bit. So far, so good.
0:14:44 > 0:14:46Yes, the rooms are a bit small and dated
0:14:46 > 0:14:50but there's a surprise on the other side of the hall.
0:14:50 > 0:14:53So into the other reception room downstairs,
0:14:53 > 0:14:55I'm pretty sure this was the garage at some stage
0:14:55 > 0:14:57and somebody's tried to create a bit more space.
0:14:57 > 0:15:00It feels a little bit disjointed from the main part of the house.
0:15:00 > 0:15:03You could actually try and knock through this wall here.
0:15:03 > 0:15:07It is a supporting wall, so it might cost you a few quid. What could you do with it?
0:15:07 > 0:15:12It could be a kiddies', I don't know, playroom, maybe? Office.
0:15:12 > 0:15:16Or maybe an adult's games room. I know which one I'd choose.
0:15:19 > 0:15:25Nice big telly, comfy couch. This could be an ideal man cave.
0:15:25 > 0:15:28Upstairs, there's more caveman in terms of decor.
0:15:28 > 0:15:33Three bedrooms, all of a good size but needing updating.
0:15:33 > 0:15:37Speaking of updates, you might want to have a look at the bathroom suite.
0:15:37 > 0:15:42# In the pink
0:15:42 > 0:15:46# in the pink... #
0:15:46 > 0:15:51Out the back, a good-sized garden but look up and you might see a problem.
0:15:55 > 0:15:58Now one thing I haven't mentioned are those pylons
0:15:58 > 0:16:02and there have been studies of late that have linked pylons to health issues.
0:16:02 > 0:16:06Now there is no conclusive evidence of that but I'm pretty
0:16:06 > 0:16:10sure it would put some people off buying a property so close.
0:16:11 > 0:16:14Again, I stress there is no official link between pylons
0:16:14 > 0:16:18and ill health but they don't make for the most attractive surroundings.
0:16:21 > 0:16:24We asked an agent from the auction house that sold the property
0:16:24 > 0:16:25what he thought.
0:16:29 > 0:16:33Pylons? They do have some issues.
0:16:33 > 0:16:37It can cause a problem with buying or selling a property.
0:16:37 > 0:16:41But it's mainly if they're overhead.
0:16:41 > 0:16:44I do know there are some building societies who won't even
0:16:44 > 0:16:47give mortgages on them if they're overhead.
0:16:47 > 0:16:50So even with no definite link to health problems,
0:16:50 > 0:16:54one reason lenders could still be reluctant is that pylons could put
0:16:54 > 0:16:59prospective purchasers off and future saleability may be affected.
0:16:59 > 0:17:03But to modernise the property, it wouldn't take a lot.
0:17:03 > 0:17:06I think the bathroom suite probably wants a change.
0:17:06 > 0:17:09It's a little dated now.
0:17:09 > 0:17:14Kitchen, a revamp of the units more than change.
0:17:14 > 0:17:19And really, possibly, redecorate, clean the carpets.
0:17:19 > 0:17:21That's about it, really.
0:17:25 > 0:17:27Not much work needed here.
0:17:27 > 0:17:32So could there be profit on the guide price of £100-105,000?
0:17:32 > 0:17:37Once the property is completed, I would anticipate that on the
0:17:37 > 0:17:44open market, a figure in the region of £125-130,000 could be achieved.
0:17:44 > 0:17:47It's a very good rental area.
0:17:47 > 0:17:50However, I would have thought that anybody buying this
0:17:50 > 0:17:54type of property would find that the rental income wouldn't
0:17:54 > 0:17:58justify the capital outlay in the first place.
0:17:58 > 0:18:01I would imagine that people would pay
0:18:01 > 0:18:04up to about £600 per calendar month.
0:18:06 > 0:18:09The agent in this case thinks the yield isn't great.
0:18:09 > 0:18:13As he's taken into consideration the cost factors like property
0:18:13 > 0:18:16insurance and maintenance and of course,
0:18:16 > 0:18:20if you choose to use a rental agent, that can take 10% of your rental
0:18:20 > 0:18:22as well but still could well be better
0:18:22 > 0:18:23than just putting it in the bank.
0:18:29 > 0:18:31This three-bed mid-terrace
0:18:31 > 0:18:34doesn't need a lot of work doing to it at all and you could turn
0:18:34 > 0:18:38it around pretty quickly but will people be put off by those pylons?
0:18:38 > 0:18:42Let's see how it got on at auction.
0:18:42 > 0:18:44Mid-terraced house.
0:18:44 > 0:18:50Would make a lovely family home and a tremendous residential investment.
0:18:50 > 0:18:56Very, very popular. Who will bid? 125,000, anyone? 120?
0:18:56 > 0:19:03Where are we going to start? £100,000, am I bid?
0:19:03 > 0:19:10£100,000, anyone? £90,000, three-bedroom house? 85, then?
0:19:10 > 0:19:15If I move on, you'll miss it. Thanks.
0:19:15 > 0:19:1985 I'm bid. Is it 95 now?
0:19:19 > 0:19:24We're all done at 85. Do I have 95 anywhere? 95, sir? 90, then.
0:19:24 > 0:19:32Thank you. At 90. At 90. 95? 92. 92.
0:19:32 > 0:19:3592. Is it 95, sir? It's four. 94.
0:19:35 > 0:19:3996, sir? 96. Thank you. 98. 98, sir?
0:19:39 > 0:19:4798. Thank you. 98. Up to 100? Thanks.
0:19:47 > 0:19:51102? No? You need to make your mind up. Here we go.
0:19:51 > 0:19:55At £100,000 to number 234.
0:19:55 > 0:20:01First time. Second time, third and last time, are we all done?
0:20:01 > 0:20:03Congratulations, sir.
0:20:03 > 0:20:06Richard finally managed to get the mid-terrace for the bottom
0:20:06 > 0:20:08of the guide price at £100,000.
0:20:11 > 0:20:13He lives four miles away and knows the property market here.
0:20:13 > 0:20:17He came to tell us more about this addition to his small portfolio,
0:20:17 > 0:20:20while his partner Jane went off to have a look around.
0:20:22 > 0:20:25- Richard, nice to meet you. Congratulations.- No problem, thank you.- Well done.
0:20:25 > 0:20:28Was this the property you wanted when you went into auction?
0:20:28 > 0:20:30- Was it the only one? - It was around ten I was looking for.
0:20:30 > 0:20:33But obviously you don't win them all. Well...only to buy one.
0:20:33 > 0:20:35Not to buy ten, it was to buy one.
0:20:35 > 0:20:38But obviously this one came along at the right price, at the right time.
0:20:38 > 0:20:41Now, tell me, what are you actually going to do? Now you've got it,
0:20:41 > 0:20:45- are you happy with it?- Basically, I need to replace the windows at the rear.
0:20:45 > 0:20:48The front are OK. It needs a new bathroom.
0:20:48 > 0:20:51Slight tidy in the kitchen and just a basic redecoration,
0:20:51 > 0:20:53but apart from that, not a great deal.
0:20:53 > 0:20:56And tell us about the area, because there are quite a few pylons.
0:20:56 > 0:21:00- It's not a problem to you?- For me, the schooling and the area itself
0:21:00 > 0:21:02will outweigh that.
0:21:02 > 0:21:05So it should resell or rent very easily,
0:21:05 > 0:21:08particularly with families, because those schools are excellent.
0:21:08 > 0:21:11Have you got people that are waiting to help you out?
0:21:11 > 0:21:14I do majori... Majority, I'll do myself.
0:21:14 > 0:21:16I'll get my partner Jane, she'll...
0:21:16 > 0:21:18she can strip some walls, no doubt.
0:21:18 > 0:21:20THEY LAUGH
0:21:22 > 0:21:25Richard has clearly made his decisions about the division of labour,
0:21:25 > 0:21:30but has he made decisions about how he will revitalise that dated decor?
0:21:30 > 0:21:33Basically, keep it neutral as possible, really.
0:21:33 > 0:21:35We don't imprint our personal touch on it too much
0:21:35 > 0:21:38- because, as I say, it is not going to be our property.- OK.
0:21:38 > 0:21:41- What are you going to do, are you going to sell or rent?- Um.
0:21:41 > 0:21:44Well, I shall either look at... If there is enough money in it,
0:21:44 > 0:21:45I shall just resell it.
0:21:45 > 0:21:48If there is not enough money once I've done the work,
0:21:48 > 0:21:50I'll just add it to my rental portfolio.
0:21:52 > 0:21:55Richard has got this right for sure.
0:21:55 > 0:22:00Don't get too personal about the property and always have a plan B.
0:22:00 > 0:22:02I'm glad he is saying bye-bye to the bathroom,
0:22:02 > 0:22:05right after interview, in fact.
0:22:05 > 0:22:09I think creating this new, sleek bathroom here should really add value.
0:22:09 > 0:22:11- And what kind of budget have you given yourself?- Um.
0:22:11 > 0:22:14I'd say between 3,500 and 5,000 should be plenty.
0:22:14 > 0:22:17To do everything, from this to what you want it finished?
0:22:17 > 0:22:19As I say, because you do the work yourself, you can
0:22:19 > 0:22:20keep the budget down.
0:22:22 > 0:22:27Richard is hoping to get some input on the interiors from partner Jane.
0:22:28 > 0:22:29The one area of course he can't,
0:22:29 > 0:22:32and no-one who isn't qualified should ever, attempt are
0:22:32 > 0:22:36gas fittings, but he will, as he said, do loads himself,
0:22:36 > 0:22:38including plumbing and decorating.
0:22:38 > 0:22:41Richard describes himself as a part-time developer,
0:22:41 > 0:22:44but he's not always been in the property game.
0:22:48 > 0:22:51- So my main job is in sales.- OK.
0:22:51 > 0:22:55And I was travelling throughout the country and overseas, which is
0:22:55 > 0:22:57not good, as I say, with a couple of young kids.
0:22:57 > 0:23:01Jane and I then purchased a traditional sweet shop, three or four years ago.
0:23:01 > 0:23:05Sweet shop, you say? I do like sweets by the way, you can see this.
0:23:05 > 0:23:08- Figure of strength, sir. - Might look at that.
0:23:08 > 0:23:11So, yeah, we had a traditional sweet shop.
0:23:11 > 0:23:14During that time I purchased some properties,
0:23:14 > 0:23:15which I've rented out.
0:23:17 > 0:23:20But now...it is getting to a point where the properties is taking
0:23:20 > 0:23:24up most of my time, so this is going to be more of my field now.
0:23:24 > 0:23:27- # He's a sweet talking' guy - Sweet talking' guy
0:23:27 > 0:23:29# But he's my kind of guy
0:23:29 > 0:23:31- # Sweet talking' guy...- #
0:23:35 > 0:23:37I can't sugar-coat it. I think
0:23:37 > 0:23:40Richard has made the right decision building up his portfolio,
0:23:40 > 0:23:44and it gives him time to follow his favourite football team.
0:23:44 > 0:23:46We're in the Midlands, so could it be my old club,
0:23:46 > 0:23:49Aston Villa? Wolverhampton Wanderers?
0:23:49 > 0:23:52The Wolves? Oh, I hope not.
0:23:52 > 0:23:55- I follow the Wolves, for my sin. - Now that is a sin.
0:23:55 > 0:23:59But I'll allow it... on this occasion. Being an ex-Villa.
0:23:59 > 0:24:01- I know you like Villa as well, don't you?- Not really.
0:24:01 > 0:24:04- That will be a "no" then, won't it? - Yeah.- There's...
0:24:04 > 0:24:08- I liked playing at Wolves, actually, at Molineux, because I always tend to score...- You do, always.
0:24:08 > 0:24:09THEY LAUGH
0:24:09 > 0:24:13- Sorry, I had to get that in there. - You should have scored a few own goals. That would be better.
0:24:13 > 0:24:15There was that as well. There was that as well.
0:24:15 > 0:24:19- Listen, I wish you all the best. - Thank you.- I know you'll do well, and you are very positive.
0:24:19 > 0:24:23- If you've got Jane by your side you'll be fine.- That's fine.- Good luck.- Cheers.- Take care.- Cheers.
0:24:25 > 0:24:28Now, Richard seems confident enough to do all the work himself,
0:24:28 > 0:24:30and with him knowing the area,
0:24:30 > 0:24:34he feels positive he will be able to get a quick sale at a good price.
0:24:34 > 0:24:37You can find out how he gets on later on in the programme.
0:24:38 > 0:24:40Coming up in Ynyswen, Wales,
0:24:40 > 0:24:44a design disaster changes three bedrooms into two.
0:24:44 > 0:24:47It has now got two doors leading into it, which is really weird.
0:24:50 > 0:24:54And in Wombourne, Richard, too, is dealing with disaster...of the flooding kind.
0:24:54 > 0:24:57All the water started flooding to all the ceilings.
0:25:09 > 0:25:11Earlier in the show, I was in the popular
0:25:11 > 0:25:14London Borough of Earlsfield to see a one-bedroom flat that
0:25:14 > 0:25:18was in need of updating, starting with the retro wallpaper.
0:25:18 > 0:25:20# And though time goes by
0:25:20 > 0:25:22# I will always be
0:25:22 > 0:25:25# In a club with you
0:25:25 > 0:25:28# In 1973... #
0:25:29 > 0:25:31You've just got to love this yellow wallpaper.
0:25:31 > 0:25:34It has nearly come back into fashion.
0:25:34 > 0:25:38But there was massive potential when it came to the layout.
0:25:38 > 0:25:41And right at the front of the property, you've got the sitting
0:25:41 > 0:25:45room, a great space, really lovely high ceilings,
0:25:45 > 0:25:47but I'm just wondering.
0:25:47 > 0:25:50I don't think this is the best use of space.
0:25:50 > 0:25:54I think you could possibly move the kitchen from right
0:25:54 > 0:25:57the way down the end of the hallway and bring it up here.
0:25:57 > 0:25:59This is such a big room, it can take it.
0:25:59 > 0:26:02You could even move the doorway to that bedroom down a little bit,
0:26:02 > 0:26:05so you just open this whole place up.
0:26:05 > 0:26:08Then you would free the kitchen up and you would make
0:26:08 > 0:26:12that into a bedroom, turning this into a two-bedroom flat.
0:26:13 > 0:26:16Mahmoud and his wife Lami chose this '70s flat as their debut
0:26:16 > 0:26:21development, and parted with 361,000 at auction,
0:26:21 > 0:26:24but while they were going to upgrade the decor and sell it on,
0:26:24 > 0:26:27they both professed a love of tiles.
0:26:27 > 0:26:31And Lami thought Mahmoud might have some quirky design ideas.
0:26:32 > 0:26:36Lami, how quirky is he? Like, what would he add that is too quirky?
0:26:36 > 0:26:40He might find a bit of a tree outside and bring in inside, and...
0:26:40 > 0:26:44- Oh, come on.- ..decide to add that as a piece of art.
0:26:45 > 0:26:48Mahmoud was certainly keeping some ideas close to his chest,
0:26:48 > 0:26:53but I did manage to change his mind about the plans for the lay out.
0:26:53 > 0:26:56Because I might go with your plans, it is going to
0:26:56 > 0:27:00hold my contractor, who is going to start tomorrow.
0:27:00 > 0:27:02For now, have I just put a little spanner in the works?
0:27:02 > 0:27:05Absolutely. Absolutely. Now you've made me basically...
0:27:05 > 0:27:10- But, listen...- ..hold my horses. - That's what I'm here for, to make you hold your horses.- Thank you.
0:27:10 > 0:27:11THEY LAUGH
0:27:14 > 0:27:18They had originally intended on the renovation taking six to eight weeks.
0:27:18 > 0:27:23We're back six months later, but did they really take on my advice?
0:27:50 > 0:27:54It seems they did take my advice and it's now a two-bed,
0:27:54 > 0:27:57and a very modern, stylish one at that.
0:28:01 > 0:28:02# You better hear what I'm sayin'
0:28:04 > 0:28:07# You better hear what I'm sayin'. #
0:28:07 > 0:28:12At the back of the flat, originally it was the kitchen.
0:28:12 > 0:28:17The idea was to relocate the kitchen, to have the bedroom at the back,
0:28:17 > 0:28:22which is less noise and less hassle for others who want to sleep.
0:28:22 > 0:28:24- It was a bit awkward, wasn't it? - Yes.
0:28:24 > 0:28:27The kitchen was just sort of dumped at the back
0:28:27 > 0:28:29and this felt like it could be a combination, so we thought, why
0:28:29 > 0:28:34not have a kitchen here and combine this and utilise that a bedroom?
0:28:34 > 0:28:38And create also an en-suite in the back of the bedroom.
0:28:38 > 0:28:40I'm quite happy with the en-suite, actually.
0:28:40 > 0:28:43- Yes, I think the finish was... - The en-suite, yeah.
0:28:43 > 0:28:47- It's quite a sweet little ensuite shower room.- True.
0:28:49 > 0:28:50Keeping the original bedroom
0:28:50 > 0:28:54and then making what was the kitchen into another bedroom
0:28:54 > 0:28:58and adding an en-suite in that bedroom is exactly what I suggested.
0:28:58 > 0:29:03I do like their idea of merging the original loo and bathroom.
0:29:03 > 0:29:05That will certainly add more value,
0:29:05 > 0:29:09and the quality of finish throughout is a very high spec.
0:29:09 > 0:29:12We have a fondness for tiles generally.
0:29:12 > 0:29:15- We didn't want to go too cheap on the look.- That's right, yes.
0:29:15 > 0:29:17We may have spent a bit more...
0:29:17 > 0:29:19To be honest, I didn't care about the money,
0:29:19 > 0:29:24I just wanted to make sure that the flat looks nice, homely, beautiful...
0:29:24 > 0:29:28I think we treated the whole project really like it was our own place,
0:29:28 > 0:29:31so we gave it every detail.
0:29:31 > 0:29:34Even till now, to the last touches, we're making sure
0:29:34 > 0:29:36they are 100% because we are treating it like our place.
0:29:38 > 0:29:42They've taken longer than intended. I hope that wasn't my fault, chaps!
0:29:42 > 0:29:46Holidays and various mishaps did also cost time but,
0:29:46 > 0:29:48as I've often said,
0:29:48 > 0:29:51getting too personally involved in the renovation of a property
0:29:51 > 0:29:55you're not actually planning on living in can make costs soar.
0:29:58 > 0:30:01What impact did that have on their budget?
0:30:02 > 0:30:08Our original budget was 35K. I got it completely wrong, to be honest.
0:30:08 > 0:30:10- I did say that.- She said that.
0:30:10 > 0:30:15I mean, to be honest, now it's 65K plus.
0:30:15 > 0:30:19During the building, we changed our mind...
0:30:19 > 0:30:22You did, not me! He did.
0:30:22 > 0:30:24My wife eventually took over
0:30:24 > 0:30:28- as project manager. - Not quite planned!- Yes.
0:30:28 > 0:30:32And she was very helpful, and every time she called me up and said,
0:30:32 > 0:30:34"This is the price," I said, "Just pay it."
0:30:34 > 0:30:36And here we are.
0:30:36 > 0:30:41Yes, here we are, Mahmoud, 30 grand over budget! Oospie!
0:30:41 > 0:30:44And here we are inviting two local estate agents to give us
0:30:44 > 0:30:46their opinions.
0:30:46 > 0:30:52The property has overgone a complete refurbish to a good standard
0:30:52 > 0:30:54and it will certainly attract
0:30:54 > 0:30:57plenty of buyers in the local market.
0:30:57 > 0:31:00The refurbishment has been done to a high standard.
0:31:00 > 0:31:04The kitchen and bathroom fittings look of a high quality.
0:31:04 > 0:31:07I think they'll appeal to anybody buying a property like this.
0:31:09 > 0:31:13So, after spending a total of £426,000 acquiring
0:31:13 > 0:31:18and renovating the property, can Mahmoud and Lami make a profit?
0:31:19 > 0:31:24This agent thinks the flat will sell for between 475,000 and 500,000.
0:31:26 > 0:31:30The other agent has valued it at 550,000,
0:31:30 > 0:31:33based on his opinion that the loft space would add value, as would
0:31:33 > 0:31:39Earlsfield's growing popularity, thanks to regeneration nearby.
0:31:39 > 0:31:44At 550,000, that could mean a pre-tax profit of £124,000.
0:31:47 > 0:31:49So, what do they make of those values ?
0:31:49 > 0:31:51I'll go with 550.
0:31:51 > 0:31:54Yeah, I think 550 sounds more or less a sort of ball figure...
0:31:54 > 0:31:56- That's right, yes.- ..that we think this is worth, really.
0:31:56 > 0:31:59That's right, yeah.
0:31:59 > 0:32:02Top rental valuation given by the agents
0:32:02 > 0:32:04was £1,650 per calendar month,
0:32:04 > 0:32:08which would give just a 4.6% yield.
0:32:09 > 0:32:11No surprise, then, with those figures, that
0:32:11 > 0:32:14the couple are dead set on selling.
0:32:16 > 0:32:19They should make a tidy profit, despite their overspend.
0:32:19 > 0:32:22But given Lami was left to get on with project managing,
0:32:22 > 0:32:25what is Mahmoud's verdict on her efforts?
0:32:26 > 0:32:29- Good job, good job.- Oh, thanks. - Good job, good job.
0:32:29 > 0:32:33- I'm looking forward to a nice holiday somewhere.- Definitely!
0:32:37 > 0:32:41# These mist covered mountains... #
0:32:44 > 0:32:48If it's a holiday you're after, how about some fresh mountain air?
0:32:48 > 0:32:51Maybe here in Wales.
0:32:51 > 0:32:55This is Ynyswen, a Welsh valley village near to Treorchy.
0:32:57 > 0:33:01Well, like other parts of the Rhondda Valley, Ynyswen was once
0:33:01 > 0:33:04just green valleys and hills.
0:33:04 > 0:33:07But with the advent of the coal mines came coal miners
0:33:07 > 0:33:09and coal miners' cottages, like these.
0:33:13 > 0:33:15In addition to its beautiful setting,
0:33:15 > 0:33:17Ynyswen has a direct train line
0:33:17 > 0:33:23to Cardiff, so those trains nowadays are carrying commuters, not coal.
0:33:24 > 0:33:26So, what am I here to see?
0:33:26 > 0:33:31Well, it's a classic Welsh valley property. Two-bed end-of-terrace.
0:33:31 > 0:33:36Guide price £34,000, plus elevated position. Like the stonework.
0:33:36 > 0:33:39Let's take a look inside.
0:33:39 > 0:33:42And I also really like the views. Look at that!
0:33:44 > 0:33:48So...what's it like? Well, quite a good first impression.
0:33:48 > 0:33:51Well, if you ignore the complete mess.
0:33:51 > 0:33:54A good open plan feel - we like that.
0:33:54 > 0:33:58The stairs to the bedrooms there and there's this large space here.
0:33:58 > 0:34:01You've got a fireplace there, so there's an open fire.
0:34:01 > 0:34:04And then through to...what?
0:34:04 > 0:34:06This would have originally been a two-up, two-down,
0:34:06 > 0:34:09so this is obviously some kind of extension at the back. My word!
0:34:09 > 0:34:11This is the kitchen.
0:34:11 > 0:34:15You've got a downstairs loo, which is a surprise.
0:34:15 > 0:34:18And then it gets a bit weird as you head over here.
0:34:18 > 0:34:23Kind of...this lean-to bit with this extremely large beam
0:34:23 > 0:34:24going across there.
0:34:24 > 0:34:26And...
0:34:28 > 0:34:29What's that?
0:34:31 > 0:34:32It's a rabbit hutch!
0:34:33 > 0:34:35A range cooker.
0:34:35 > 0:34:37THEME FROM PSYCHO
0:34:38 > 0:34:40I hope the two aren't linked!
0:34:40 > 0:34:42# A bunny-boiler, baby. #
0:34:43 > 0:34:47Oh, there was me thinking Welsh rarebit was cheese on toast.
0:34:48 > 0:34:50# A bunny boiler, baby. #
0:34:50 > 0:34:53I should say at this point that no animals,
0:34:53 > 0:34:57rabbits or otherwise, were harmed during this production.
0:34:57 > 0:35:00Now, back to this kitchen. What is going on with the roof?
0:35:00 > 0:35:01This will need fixing,
0:35:01 > 0:35:05as will some of the damp areas in the living room.
0:35:05 > 0:35:10But upstairs there is some good news born out of a bad layout.
0:35:10 > 0:35:14So, upstairs, currently, two bedrooms,
0:35:14 > 0:35:18but that wouldn't be that difficult to change because...
0:35:19 > 0:35:22..this front one, as you can see, has been
0:35:22 > 0:35:25converted from two bedrooms originally.
0:35:25 > 0:35:29It's now got two doors leading into it, which is really weird.
0:35:29 > 0:35:31Yes, it's a good sized space and yes,
0:35:31 > 0:35:34it's lovely that you have views out of two windows, but really,
0:35:34 > 0:35:36put the dividing wall back in here,
0:35:36 > 0:35:41turn it back into two rooms as it originally was.
0:35:41 > 0:35:43# Don't make no sense
0:35:47 > 0:35:49# Don't make no sense, baby. #
0:35:51 > 0:35:53You need two entrances to this bedroom like you need
0:35:53 > 0:35:57a rabbit hutch under the sink. In other words, you don't.
0:35:57 > 0:36:01So split the room and you have two bedrooms to add to the other
0:36:01 > 0:36:03existing bedroom.
0:36:03 > 0:36:05Hey presto, a three-bedroom house.
0:36:05 > 0:36:08My next trick isn't a rabbit out of a hat, it's a
0:36:08 > 0:36:11surprisingly spacious garden.
0:36:11 > 0:36:15Well, for a terraced property, you might expect a fairly small
0:36:15 > 0:36:17rear garden, but that's not the case here.
0:36:17 > 0:36:20It's obviously very steeply inclined.
0:36:20 > 0:36:22Well, we are built on to the side of a Welsh hill, for goodness' sake.
0:36:22 > 0:36:26But lots of space. You've got a pond, this little shed thing here.
0:36:26 > 0:36:30And over this way, this rather intriguing construction.
0:36:30 > 0:36:34It is actually a garage. That's good news. Why?
0:36:34 > 0:36:37Because it's not in that good a condition.
0:36:37 > 0:36:40However, what you've got to get into it is rear access,
0:36:40 > 0:36:42so that's brilliant.
0:36:42 > 0:36:47Garage parking is a bonus and a summer house is very nice, too.
0:36:47 > 0:36:49This house has additional accommodation,
0:36:49 > 0:36:53but sadly, it's a neglected old caravan.
0:36:54 > 0:36:57I see potential in this lot, guided at £34,000.
0:36:57 > 0:37:02Does a local property expert see any more potential problems?
0:37:04 > 0:37:08It looks as if the plaster walls have been renovated.
0:37:08 > 0:37:14So that's a big plus for it. The doors and windows look pretty sound.
0:37:14 > 0:37:17Upstairs, I think, needs a little bit of work.
0:37:17 > 0:37:20I saw some old-fashioned polystyrene tiles to the ceilings,
0:37:20 > 0:37:22which would need to be replaced.
0:37:22 > 0:37:25But overall, I think it's a pretty sound property.
0:37:27 > 0:37:29So, some positives
0:37:29 > 0:37:34and some fire hazards with those polystyrene tiles.
0:37:34 > 0:37:37Downstairs bathroom - should you move it upstairs?
0:37:37 > 0:37:39That's always the question.
0:37:39 > 0:37:42I think the downstairs bathroom isn't an issue in the valleys.
0:37:42 > 0:37:46We do accept that bathrooms are kept downstairs to ensure there's
0:37:46 > 0:37:49three bedrooms or more than two bedrooms.
0:37:49 > 0:37:52So three bedrooms upstairs, bathroom downstairs is quite acceptable.
0:37:55 > 0:37:59It's always good to know the expectations of a local market and
0:37:59 > 0:38:03save yourself some time and money leaving the bathroom where it is.
0:38:03 > 0:38:07Upstairs, though, am I right about the big knock-through bedroom?
0:38:07 > 0:38:11One way to find out is to compare values.
0:38:11 > 0:38:15Once the refurbishment has been complete, resale value,
0:38:15 > 0:38:16if it was kept as a two-bedroom,
0:38:16 > 0:38:20would probably be in the region of about £65,000 to £70,000,
0:38:20 > 0:38:23and if it was converted back to the three bedrooms,
0:38:23 > 0:38:28I would expect the valuation to be in the region of £75,000.
0:38:28 > 0:38:32Well, there's obviously work to be done but, intrinsically,
0:38:32 > 0:38:33it's a solid house,
0:38:33 > 0:38:37and for that guide price I don't think you can go too far wrong.
0:38:37 > 0:38:39Let's see who agreed when it went under the hammer.
0:38:41 > 0:38:47So, lot number 14, which is an end-of-terrace house, two bedrooms.
0:38:47 > 0:38:51Guided at £34,000. Where will you start me?
0:38:51 > 0:38:5430,000? Make it 25, then, if you want.
0:38:54 > 0:38:5725. Wave your hand at me. Thank you. 25. I've got you there. At 25.
0:38:57 > 0:38:5926, can I see?
0:38:59 > 0:39:0225 at the back. 25 then,
0:39:02 > 0:39:06with the main bidder. Here we go again. Thank you, 26. How about 27?
0:39:06 > 0:39:0927. 28. 29?
0:39:09 > 0:39:1229. 30. 31.
0:39:12 > 0:39:1531? 31. 32. 33.
0:39:15 > 0:39:1734. 35.
0:39:17 > 0:39:2034,500, if it helps you.
0:39:20 > 0:39:2434,500. 35, back to you. No. At 34,500. Are you sure?
0:39:24 > 0:39:28At £34,500, for the first time...
0:39:28 > 0:39:3135. Thank you. If I can't see you, feel free to shout.
0:39:31 > 0:39:3535. Back to you at 35,500? No. At 35, then here.
0:39:35 > 0:39:37For the first time...
0:39:37 > 0:39:38second time...
0:39:38 > 0:39:41third and last time, at £35,000...
0:39:41 > 0:39:44Yours, sir. Thank you, number 13. Thank you very much.
0:39:46 > 0:39:50The successful bidder was Oliver, paying £35,000.
0:39:50 > 0:39:54He has been developing properties as a sideline for 12 years
0:39:54 > 0:39:58and he appeared at the end terrace with the in-built rabbit hutch
0:39:58 > 0:40:00to tell us his plans.
0:40:07 > 0:40:12- Oliver, good to meet you.- You, too. Have you got a rabbit?- No.
0:40:12 > 0:40:15- For the hutch in the kitchen? - Yes!- No, no.
0:40:15 > 0:40:18So, tell me why you wanted to buy this place.
0:40:18 > 0:40:20Just the location - it's near the train station,
0:40:20 > 0:40:24it's in Treorchy, which I'm a big fan of. It's a very bustling Welsh town.
0:40:24 > 0:40:27- So it's nice. I liked it. It had a good feeling.- Good.
0:40:27 > 0:40:29Doesn't sound like you've got a Welsh accent.
0:40:29 > 0:40:32- Are you from these parts? - No, Dorset.- Dorset!- Yeah.
0:40:32 > 0:40:35- That's quite a schlep from here.- Yeah, I've got property in the area,
0:40:35 > 0:40:37so I've had it for 10, 15 years.
0:40:37 > 0:40:41OK. What originally attracted you to this part of the country?
0:40:41 > 0:40:44Um, just the return on your money, the yield.
0:40:44 > 0:40:47In terms of investment to return, it's about 12%, 13% here.
0:40:47 > 0:40:51- Very good.- And the people are lovely. Welsh people are fantastic.
0:40:51 > 0:40:52Definitely.
0:40:52 > 0:40:54So why this particular house?
0:40:54 > 0:40:57I didn't see it before you asked me. I didn't come inside.
0:40:57 > 0:40:58I just did a drive by, saw the garden,
0:40:58 > 0:41:01saw the size, looks at the neighbours¹ houses...
0:41:01 > 0:41:04- You didn't see the rabbit hutch?- No, I didn't. I couldn't get through, no.
0:41:04 > 0:41:08The neighbours¹ houses looked well-kept, the area looked nice
0:41:08 > 0:41:10and the house looked a good size for the money.
0:41:10 > 0:41:12Do you often not look at them before you buy?
0:41:12 > 0:41:16No, I tend to go in, but I couldn't get down for the open day,
0:41:16 > 0:41:17it was too far.
0:41:17 > 0:41:20What did you think when you walked through the door?
0:41:20 > 0:41:23"Oh, my goodness!" No, nice, but it's... It was OK.
0:41:23 > 0:41:26It's better than I thought in that it had been plumbed and rewired.
0:41:26 > 0:41:29- So had you seen it inside, would you still have bought it?- Yeah.
0:41:29 > 0:41:31For the money, definitely.
0:41:34 > 0:41:37Oliver has broken a Hammer golden rule,
0:41:37 > 0:41:40but he is experienced and knows the area well.
0:41:40 > 0:41:44Now that he's actually seen inside, what's his plan?
0:41:44 > 0:41:47Well, I'm going to replace the flooring in here, damp-proof course
0:41:47 > 0:41:51the walls and exterior wall, renew the kitchen, bathroom.
0:41:51 > 0:41:53Try and keep as much of the bathroom as we can to save money.
0:41:53 > 0:41:56What are the plans for upstairs?
0:41:56 > 0:42:00I'd like to put a toilet and hand basin into the landing area
0:42:00 > 0:42:03where there is a bit of area to put them into.
0:42:03 > 0:42:06At the moment it's a two-bed. I'd like to put it back to a three-bed and then tidy it up
0:42:06 > 0:42:10and make it look half decent and make it presentable for the rental market.
0:42:10 > 0:42:12How much are you going to spend?
0:42:12 > 0:42:15Between...I'd like to say between 5,000 and 7,500.
0:42:15 > 0:42:18It is probably going to be more like 7,500 to 8,000.
0:42:18 > 0:42:21- Does that require you doing a lot of work?- Yeah, most of the work.
0:42:21 > 0:42:25- Are you handy? - Yes, I try to be, as best I can.
0:42:25 > 0:42:28- What's your background? - IT, randomly.- Oh, right!
0:42:28 > 0:42:31But I learned from my father, an interior designer,
0:42:31 > 0:42:33who worked in London and spent many summers learning
0:42:33 > 0:42:38- the trade from him so I picked it up and I really enjoyed, it's good fun. - Great.
0:42:38 > 0:42:40Is there anything you can't turn your hand to?
0:42:40 > 0:42:42Obviously the specialist stuff - electrics and plumbing.
0:42:42 > 0:42:44Even though I'll have a go at first fix
0:42:44 > 0:42:48and let the chaps come in and do all the vital connections.
0:42:48 > 0:42:49As much of it as I can do I will do.
0:42:49 > 0:42:53# Oliver's army is here to stay
0:42:53 > 0:42:56# Oliver's army are on their way. #
0:42:56 > 0:43:00Oliver might not have an army of tradespeople coming to help him
0:43:00 > 0:43:04other than for the tricky bits, but the general is looking
0:43:04 > 0:43:08to march this to market in two to three months.
0:43:10 > 0:43:12If he's coming all the way from Dorset,
0:43:12 > 0:43:15that could be a very long march indeed.
0:43:15 > 0:43:19- How are you going to do it? - Your home is in Dorset.- Yes.
0:43:19 > 0:43:21- Are you going to base yourself here? - I'll come and live on site.
0:43:21 > 0:43:25Camping, as there is a caravan in the back garden.
0:43:25 > 0:43:26Came free with every purchase!
0:43:26 > 0:43:29- Well, that's quite convenient. - Yeah.- Right.
0:43:29 > 0:43:31And then on to the next project?
0:43:31 > 0:43:33Yes, hopefully.
0:43:33 > 0:43:37Yeah, I've got another one in Dorset starting after this one, so we'll see.
0:43:37 > 0:43:39Flats, conversion to flats.
0:43:39 > 0:43:41- Well, congratulations. Good luck.- Thanks.
0:43:41 > 0:43:43Look forward to seeing how you get on.
0:43:43 > 0:43:46Well, it seems like it will be Oliver on his own
0:43:46 > 0:43:48without his army who will be sorting this place out,
0:43:48 > 0:43:50but he's certainly chosen well
0:43:50 > 0:43:55when it comes to a property that can deliver a good yield.
0:43:55 > 0:43:58How will it look when he's finished? You can find out later in the show.
0:44:02 > 0:44:06Well, time has passed but we've already caught up with one property.
0:44:06 > 0:44:08But we still need to check in on two more.
0:44:08 > 0:44:12Did they stick to their timescales and budgets? Let's find out.
0:44:18 > 0:44:21Back to Wombourne, a village outside Wolverhampton,
0:44:21 > 0:44:23where I found a three-bed semi that needed...
0:44:23 > 0:44:31well, virtually nothing doing to it, except maybe a move into this decade.
0:44:31 > 0:44:34The dated decor and the pink sink needed to go, but there was only
0:44:34 > 0:44:39one thing that I could see that might put some buyers off.
0:44:39 > 0:44:43There have been studies of late that have links pylons to health issues.
0:44:43 > 0:44:46Now, there is no conclusive evidence of that, but I'm pretty
0:44:46 > 0:44:51sure it would put some people off buying a property so close.
0:44:52 > 0:44:56Former salesman, sweet shop owner and part-time property developer
0:44:56 > 0:44:59Richard wasn't put off by the pylons.
0:44:59 > 0:45:03Having bought this for £100,000, he was ready to do the work himself.
0:45:04 > 0:45:08I doubt he told his partner Jane how he planned to divide the workload.
0:45:10 > 0:45:14I'll get my partner Jane, she can strip some walls!
0:45:14 > 0:45:16LAUGHTER
0:45:18 > 0:45:20We're back three months later to see
0:45:20 > 0:45:23if Jane has torn a strip of him or the walls.
0:45:55 > 0:45:57Looks good to me!
0:45:57 > 0:46:00Richard has done a great job here, if he did it all himself.
0:46:00 > 0:46:03Or did he have a little help and get a chance to sit back
0:46:03 > 0:46:05and play foreman?
0:46:05 > 0:46:10I obviously was the foreman but I did a lot of the jobs myself.
0:46:10 > 0:46:12Obviously all the electrics.
0:46:12 > 0:46:16A guy I know quite well, he's helped me decorate.
0:46:16 > 0:46:18Another guy has helped me with a bit of plastering.
0:46:18 > 0:46:21I can plaster patches but not complete walls.
0:46:21 > 0:46:24And I've had a little help with the gas works, as well.
0:46:24 > 0:46:27I will deal with the plumbing but not the gas side of things.
0:46:30 > 0:46:32So with a little bit of help from friends,
0:46:32 > 0:46:35Richard has brought this house into the 21st century.
0:46:39 > 0:46:43Replacing the bathroom suite was a must but it led to big problems.
0:46:44 > 0:46:48The biggest problem with the property was definitely the plumbing.
0:46:48 > 0:46:51It's something you don't envision you have to replace the lot.
0:46:51 > 0:46:53I had to rip the bathroom out,
0:46:53 > 0:46:56but before I ripped the bathroom out I had to pull the floorboards out,
0:46:56 > 0:46:59because when I turned the stopcock on,
0:46:59 > 0:47:02all the water started flooding through all the ceilings.
0:47:02 > 0:47:06So it was a case of having to replumb the whole house
0:47:06 > 0:47:08because every single joint had corroded.
0:47:08 > 0:47:10For some reason they'd used compression fittings
0:47:10 > 0:47:13as opposed to a soldered joint
0:47:13 > 0:47:16and there were actually stainless steel pipes with a brass or
0:47:16 > 0:47:19copper fitting, and I think it was a reaction between the two metals
0:47:19 > 0:47:21that caused the leakage.
0:47:21 > 0:47:26It's not a costly exercise, it's more a time-consuming exercise.
0:47:29 > 0:47:32And that flood had a knock-on effect in the kitchen.
0:47:33 > 0:47:37The original plan was just to basically tart up the original
0:47:37 > 0:47:41kitchen, but because of the water leakage problems, I found
0:47:41 > 0:47:44when I opened all the cupboards that all the carcasses are now rotten,
0:47:44 > 0:47:48so it was a case of, "Right, we need to change the kitchen as well."
0:47:50 > 0:47:54I thought Richard said it was time consuming and not costly!
0:47:54 > 0:47:59New kitchens cost. How much did it eat into his budget?
0:47:59 > 0:48:03The original budget was between 3,500 and 5,000.
0:48:03 > 0:48:07I'm fractionally over the top level at 5,200.
0:48:07 > 0:48:10But that does include a brand-new kitchen
0:48:10 > 0:48:14and also I've re-carpeted the whole house top to bottom, as well.
0:48:14 > 0:48:18So, to be only 200 over, with new kitchen and carpeting, I think
0:48:18 > 0:48:20I've done quite well, really.
0:48:21 > 0:48:23He's done well with his dosh,
0:48:23 > 0:48:26but it's not surprising he's gone a little over timescale.
0:48:26 > 0:48:30I was hoping to get the job completed within ten weeks.
0:48:30 > 0:48:33I'm a fraction over that - I'm up to 12 weeks,
0:48:33 > 0:48:36but that's due to school holidays, and I thought it was more
0:48:36 > 0:48:38important to spend a few quality weeks with the children.
0:48:41 > 0:48:43A tiny bit over budget is forgivable,
0:48:43 > 0:48:45considering the bathroom disaster.
0:48:45 > 0:48:49And you can't begrudge a timescale extending to have good family time.
0:48:50 > 0:48:53Now we need the thoughts of two local estate agents to see
0:48:53 > 0:48:56if the hard work was worthwhile.
0:48:56 > 0:48:59This is the second time I've been into the property.
0:48:59 > 0:49:02And in the main, a lot of what they've done has been cosmetic.
0:49:04 > 0:49:06They've redecorated, they've put new carpets in.
0:49:06 > 0:49:09They've made it very nice.
0:49:09 > 0:49:13I like the idea with the carpets going all the way through.
0:49:13 > 0:49:18The kitchen and bathroom seem to have been done to a good standard.
0:49:21 > 0:49:24Richard's total spend is just over £105,000,
0:49:24 > 0:49:27and if he can make a profit on resale,
0:49:27 > 0:49:29that was the way he wanted to go.
0:49:29 > 0:49:32Otherwise, he was into his rental portfolio.
0:49:34 > 0:49:36The resale market value for this property
0:49:36 > 0:49:38I would place at around £135,000,
0:49:38 > 0:49:41and the rental market for this property
0:49:41 > 0:49:46I would place at around £650 per calendar month.
0:49:46 > 0:49:50If the current owners wish to resell the property, then I would
0:49:50 > 0:49:56imagine they would achieve in the region of £130,000 to £135,000.
0:49:56 > 0:49:59But alternatively, if they wish to rent the property out,
0:49:59 > 0:50:03they would probably achieve in the region of £650 per calendar month.
0:50:03 > 0:50:08Obviously, it would be just under £30,000 profit in a few weeks, which is not bad.
0:50:08 > 0:50:11Nearly Premier League football, eh, Dion?
0:50:11 > 0:50:15Yeah, it might be nearly Premier League wages with that pre-tax
0:50:15 > 0:50:17profit of just under £30,000,
0:50:17 > 0:50:20but your banter is definitely lower league, Richard.
0:50:22 > 0:50:27He could get 7.4% yield at rental, so what's he going to do?
0:50:27 > 0:50:31Regarding selling on, it's something I'll definitely be doing.
0:50:31 > 0:50:35I always envisioned around £25,000 - £30,000 profit, so, yeah,
0:50:35 > 0:50:38I'll be at the auction in two days' time and maybe get another one.
0:50:38 > 0:50:41# He's a sweet talking sugar-coated candy man
0:50:41 > 0:50:44# A sweet talking sugar-coated candy man. #
0:50:47 > 0:50:51Richard has decided to stop being a candy man and sell his sweet shop.
0:50:51 > 0:50:55But life is still sweet for the Premier League property developer.
0:50:57 > 0:50:59I plan to get a new property shortly.
0:50:59 > 0:51:02That'll probably give me a month,
0:51:02 > 0:51:04six weeks off while legals are sorting things out.
0:51:04 > 0:51:07Allow me to spend time with Ellie and George, the kids,
0:51:07 > 0:51:10and my partner Jane and her son Harry.
0:51:17 > 0:51:21Earlier in the show I was in the Rhondda Valley village of Ynyswen.
0:51:21 > 0:51:25At a guide price of £34,000, and with views to die for,
0:51:25 > 0:51:28this two-bed semi seemed a steal.
0:51:28 > 0:51:31Until the rather eccentric modifications inside brought
0:51:31 > 0:51:34you back down to earth with a bump.
0:51:34 > 0:51:37And then it gets a bit weird as you as you head over here.
0:51:37 > 0:51:41Kind of this lean-to bit with this extremely large beam
0:51:41 > 0:51:43going across there.
0:51:43 > 0:51:44And...
0:51:47 > 0:51:48What's that?
0:51:49 > 0:51:50It's a rabbit hutch!
0:51:53 > 0:51:56Yes, you know it's going to be a strange day on Homes Under The Hammer
0:51:56 > 0:51:59when a rabbit hutch under the sink in the kitchen isn't
0:51:59 > 0:52:01the weirdest thing about a property.
0:52:01 > 0:52:05Because upstairs, I found out that the two-bed house had in fact
0:52:05 > 0:52:10been a three-bed house, but was now missing a partition wall.
0:52:10 > 0:52:13I said, "Put the wall back and give it a proper layout."
0:52:15 > 0:52:17Fixing all those oddities fell to Oliver.
0:52:17 > 0:52:21He paid £35,000 for it and could call
0:52:21 > 0:52:24upon 12 years of experience developing property as a sideline.
0:52:26 > 0:52:29- Have you got a rabbit?- No.
0:52:29 > 0:52:32- For the hutch in the kitchen? - Yes!- No, no.
0:52:32 > 0:52:35But Oliver would have to make like a hare - ha-ha! -
0:52:35 > 0:52:38to meet his two to three-month timescale.
0:52:38 > 0:52:40He planned to sort out this kitchen
0:52:40 > 0:52:44and fix some damp areas on the gable end wall, too.
0:52:44 > 0:52:47- So what are the plans for upstairs? - At the moment it's a two-bed.
0:52:47 > 0:52:51I'd like to get it back to a three-bed and then tidy it up and make it look half decent.
0:52:51 > 0:52:53And make it presentable, really, for the rental market.
0:52:57 > 0:53:00Four months on, the exterior is looking good.
0:53:00 > 0:53:04The property's steep but very large rear garden has been tidied,
0:53:04 > 0:53:07but let's see what it's like inside.
0:53:31 > 0:53:33Cleaner, brighter, better.
0:53:33 > 0:53:35Oliver took a wise step, in my opinion,
0:53:35 > 0:53:39putting the large bedroom back to two bedrooms.
0:53:44 > 0:53:47The third bedroom has been redecorated, too.
0:53:47 > 0:53:51This is now a three-bed house and, as Oliver promised,
0:53:51 > 0:53:55he has even managed to get a new shower room on the top floor.
0:53:56 > 0:54:01Despite having the help of a friend, it's all taken four months rather
0:54:01 > 0:54:05than his original estimate of two to three, but there was a lot to do.
0:54:05 > 0:54:10We've done pretty much everything - dry-lined the house, new kitchens,
0:54:10 > 0:54:14new bathrooms, new flooring, new carpets, new paintwork...
0:54:14 > 0:54:16A lot, yeah, from last time you were here.
0:54:16 > 0:54:19Downstairs, it was open plan when we got it,
0:54:19 > 0:54:23so we just refreshed the paintwork, put new flooring down, new skirting
0:54:23 > 0:54:26boards, new radiators, and we turned it from a two-bed into a three-bed.
0:54:26 > 0:54:29What was a cupboard is now a bathroom/shower room,
0:54:29 > 0:54:31a small shower room.
0:54:31 > 0:54:34And the cupboard would be not used, really,
0:54:34 > 0:54:36so I thought turn it into a toilet/hand basin.
0:54:36 > 0:54:38But then I thought it would be nice to have a shower as well,
0:54:38 > 0:54:40seeing as the plumbing was up there.
0:54:40 > 0:54:42We thought why not? So we put it in.
0:54:44 > 0:54:48An upstairs shower room is a good idea and should add value.
0:54:48 > 0:54:50It also meant he can keep the downstairs loo
0:54:50 > 0:54:54that sits at the back of a revamped kitchen.
0:54:54 > 0:54:56So, this is the kitchen.
0:54:56 > 0:54:59We replaced the roof initially because it was leaking,
0:54:59 > 0:55:02letting in a lot of water. Now it gets in much more light.
0:55:02 > 0:55:04That was a problematic area with the water.
0:55:04 > 0:55:07Once the kitchen was fitted we found big puddles of water every morning.
0:55:07 > 0:55:10We dug down and it was a leaking pipe,
0:55:10 > 0:55:12which we fixed and replaced all the floor.
0:55:12 > 0:55:16Renewed all the units, as you see, new wall units.
0:55:16 > 0:55:19And replaced what was the Edwardian sort of ship's timber
0:55:19 > 0:55:23and made it look much more modern and it's come out really well.
0:55:23 > 0:55:24I like it.
0:55:26 > 0:55:29Digging up floors and unexpected plumbing problems can be
0:55:29 > 0:55:31potentially pricey.
0:55:31 > 0:55:36In fact, Oliver hoped his budget would be between £5,000 and £8,000,
0:55:36 > 0:55:38but he has spent...
0:55:38 > 0:55:408,500.
0:55:40 > 0:55:43Not including my labour, so...
0:55:44 > 0:55:47Not bad at all, given the amount of work Oliver
0:55:47 > 0:55:49and his friend have done.
0:55:49 > 0:55:52But what did two local agents think of the work?
0:55:52 > 0:55:55Let's start with the agent who saw it before.
0:55:55 > 0:55:57A good job has been made.
0:55:57 > 0:55:59Improved the kitchen, bathroom facilities,
0:55:59 > 0:56:01made it into three bedrooms.
0:56:01 > 0:56:03I believe it was two bedrooms initially.
0:56:03 > 0:56:05Which is more beneficial for the property.
0:56:05 > 0:56:08And overall, a very nice job.
0:56:08 > 0:56:11I particularly like the size of the property.
0:56:11 > 0:56:14At the rear there is a good-sized garden
0:56:14 > 0:56:18and that the front we have an outstanding view of the valley.
0:56:18 > 0:56:21Oliver wanted to add this to his rental portfolio but,
0:56:21 > 0:56:25having spent a total of £43,500 on the property,
0:56:25 > 0:56:28might there be profit in selling it?
0:56:31 > 0:56:34I would recommend the property be placed on the open market
0:56:34 > 0:56:39at an asking price of £79,950.
0:56:39 > 0:56:41We would probably be looking at an asking figure
0:56:41 > 0:56:44of between £75,000 and £80,000.
0:56:44 > 0:56:46Yeah, that's about right, 74,000...
0:56:46 > 0:56:49That's roughly what I thought, between 74,000 and 79,000, for the area.
0:56:49 > 0:56:51So...
0:56:51 > 0:56:54Not hugely shocked, a little bit shocked but, yes, it's about right.
0:56:54 > 0:56:56Yes, that is about right,
0:56:56 > 0:57:03but that £36,500 pre-tax profit is not enough to change Oliver's mind.
0:57:03 > 0:57:05He still wants to rent.
0:57:06 > 0:57:10So, what do the agents estimate it could be worth on the rental market?
0:57:10 > 0:57:13And how does that compare to the rate he's already
0:57:13 > 0:57:15charging his current tenants?
0:57:15 > 0:57:17Rental-wise, in the current market,
0:57:17 > 0:57:25it probably would achieve between £450 and £475 per calendar month.
0:57:25 > 0:57:28I would recommend the property be placed on the market
0:57:28 > 0:57:32for rental of £400 per calendar month.
0:57:32 > 0:57:34Yeah, I'm actually getting the top end of that -
0:57:34 > 0:57:38475 is what the tenants pay. So, yeah, that's again about right.
0:57:38 > 0:57:40A little bit more than other properties,
0:57:40 > 0:57:44but I spent a bit more in terms of inside and everything else.
0:57:44 > 0:57:45It's much nicer.
0:57:45 > 0:57:48Oliver has achieved a 13% yield
0:57:48 > 0:57:52and is planning to expand his portfolio further.
0:57:52 > 0:57:56He was camping on site to develop this property.
0:57:56 > 0:57:58Any desire to do that again?
0:57:58 > 0:58:00I'd like to say I wouldn't camp on site,
0:58:00 > 0:58:03but sometimes needs must, so we'll see.
0:58:03 > 0:58:05Hopefully, the next house won't be as bad as this,
0:58:05 > 0:58:08or it may be worse, so we might have to not camp on site, we'll see.
0:58:11 > 0:58:13Well, that's just about it for today's show.
0:58:13 > 0:58:17But there is always something new to learn in this business.
0:58:17 > 0:58:21- So join us next time for more auction tales.- We'll see you, then.
0:58:21 > 0:58:23- Goodbye.- Goodbye.- Goodbye.