0:00:02 > 0:00:04Hello. Now, if you like getting things done quickly,
0:00:04 > 0:00:07then buying property at auction might be right up your street.
0:00:07 > 0:00:09Yes, and four weeks after you put your hand up,
0:00:09 > 0:00:11- that property could be yours.- Yep.
0:00:11 > 0:00:14That is when the real work begins because you've got to be
0:00:14 > 0:00:17prepared for anything when you buy under the hammer.
0:00:42 > 0:00:45You'd think between us we'd seen every kind of property,
0:00:45 > 0:00:47but there's always a surprise waiting for you around the corner.
0:00:47 > 0:00:49Yeah. Do you think there'll be one there today?
0:00:49 > 0:00:53Well, let's see what properties were up for auction on today's show.
0:00:54 > 0:00:56'In Stepney Green, East London,
0:00:56 > 0:00:59'is there hidden value right above my head?
0:00:59 > 0:01:00'But remember...'
0:01:00 > 0:01:03Check first who owns the loft space.
0:01:04 > 0:01:07'No shortage of that valuable loft space in Dartford, Kent.
0:01:07 > 0:01:10'And it comes with an illuminating bonus.'
0:01:10 > 0:01:13The great thing is there is some natural light coming in over there.
0:01:14 > 0:01:16'And in Salford, Manchester,
0:01:16 > 0:01:19'there's a lofty issue when it comes to financing
0:01:19 > 0:01:20'this one-bed apartment.'
0:01:20 > 0:01:24So you might find it hard raising the money for a flat like this.
0:01:25 > 0:01:27All these properties have been sold at auction.
0:01:27 > 0:01:30We'll find out who bought them and what they paid for them
0:01:30 > 0:01:33when they went under the hammer.
0:01:33 > 0:01:34Well done.
0:01:42 > 0:01:45I am in Stepney Green, in London's East End.
0:01:45 > 0:01:50Its popularity has increased recently, as property prices are
0:01:50 > 0:01:53that little bit lower than in its trendy neighbours
0:01:53 > 0:01:55Shoreditch and Bow.
0:01:55 > 0:01:58Well, a large part of this area was badly damaged by bombing during
0:01:58 > 0:02:02the Second World War, so there is quite a bit of new building.
0:02:02 > 0:02:05However, the joy is that the property I am here to see
0:02:05 > 0:02:06is on this side of the street,
0:02:06 > 0:02:09where you've still got some period properties.
0:02:09 > 0:02:12A fantastic first-floor flat is what I am here to see.
0:02:12 > 0:02:15The guide price was £380,000-plus.
0:02:15 > 0:02:16Let's have a look.
0:02:18 > 0:02:21Well, I can already see a little TLC is going to be required
0:02:21 > 0:02:23on the outside.
0:02:23 > 0:02:25But let's see what the inside has to offer.
0:02:28 > 0:02:32So, up the stairs, as is generally the way with a first-floor flat,
0:02:32 > 0:02:35to this little landing area. You've got bedroom one there.
0:02:35 > 0:02:39It's a good size. Bedroom two, even bigger.
0:02:39 > 0:02:41Double windows, that is really nice to see.
0:02:41 > 0:02:44I mean, the whole flat is obviously in need of some major
0:02:44 > 0:02:47renovations, but I'm not really focusing on that.
0:02:47 > 0:02:49I'm just looking at how much space we've got.
0:02:49 > 0:02:53A loo there, which definitely needs a bit of money spending on it.
0:02:53 > 0:02:56But then into this room here, which is a really good size.
0:02:56 > 0:02:59Again, would this be - I don't know - the lounge,
0:02:59 > 0:03:00another bedroom?
0:03:00 > 0:03:03It's a lot bigger than I thought it was going to be.
0:03:03 > 0:03:08And it throws open some really interesting conundrums.
0:03:08 > 0:03:11Yes, you could knock through from the kitchen into the lounge
0:03:11 > 0:03:16to make it more open-plan or maybe divide one of the large rooms up
0:03:16 > 0:03:18to squeeze in a third bedroom.
0:03:18 > 0:03:21Decisions, decisions.
0:03:21 > 0:03:23# Tell me what to do
0:03:23 > 0:03:28# And I will do What you tell me to do
0:03:28 > 0:03:30# I'll do it till I'm blue
0:03:30 > 0:03:34# I'll do that too. #
0:03:34 > 0:03:37Obviously, there is other work to do here.
0:03:37 > 0:03:39The floors in the hallway are uneven,
0:03:39 > 0:03:40so I'd get that checked out.
0:03:40 > 0:03:43But there could be another way to add value.
0:03:44 > 0:03:47One thing you're always looking at with flats is ways you could
0:03:47 > 0:03:50potentially enhance the value by extending.
0:03:50 > 0:03:54And obviously, in a first-floor flat, the option is to go up.
0:03:54 > 0:03:57The thing is you've got to check first who owns the loft space.
0:03:57 > 0:04:00It could be the freeholder, it could be owned by this flat.
0:04:00 > 0:04:02But when it comes to London properties,
0:04:02 > 0:04:04London flats in particular,
0:04:04 > 0:04:06then the amount of money you're going to spend doing that, I think,
0:04:06 > 0:04:09you'd definitely get back in terms of what you would add
0:04:09 > 0:04:12to the value and the probably saleability of the flat.
0:04:14 > 0:04:15Of course, in cases like this,
0:04:15 > 0:04:18you would need to check out not just that you own it but
0:04:18 > 0:04:23that there is room up there before you start getting carried away.
0:04:23 > 0:04:25And as this is a leasehold flat,
0:04:25 > 0:04:28any alterations need the freeholder's permission.
0:04:28 > 0:04:31The good news is that there is a new lease on this property,
0:04:31 > 0:04:33with 125 years to go.
0:04:33 > 0:04:34But the big question is,
0:04:34 > 0:04:36should the flat be reconfigured?
0:04:36 > 0:04:40We asked a local estate agent to give his opinion.
0:04:42 > 0:04:46The temptation is always to separate it to generate more bedrooms.
0:04:46 > 0:04:48But I do believe that having
0:04:48 > 0:04:51such a large square footage in an area where space is a premium
0:04:51 > 0:04:55will make the property present much better in the format that it is now.
0:04:55 > 0:04:59# I wouldn't change I wouldn't change. #
0:04:59 > 0:05:02Interesting. I must say, it does have nice proportions,
0:05:02 > 0:05:03but there are a few niggles.
0:05:05 > 0:05:08I am a little bit concerned about some of the bowing in the floors
0:05:08 > 0:05:09and in the ceilings.
0:05:09 > 0:05:12I think a structural engineer should be advised to come
0:05:12 > 0:05:16and look at the property and give it a clean bill of health.
0:05:16 > 0:05:19I too don't like the fact that the floor is so wavy.
0:05:19 > 0:05:21If this is a big structural issue,
0:05:21 > 0:05:25you could end up waving goodbye to large sums of money.
0:05:25 > 0:05:29Assuming all is well and this flat was kept in this configuration
0:05:29 > 0:05:32but given a face-lift, the agent thinks that the rental
0:05:32 > 0:05:37here could be as much as £1,700 per calendar month.
0:05:37 > 0:05:41But what could this property, guided at £380,000,
0:05:41 > 0:05:43be worth on the open market?
0:05:43 > 0:05:47I would expect it to go on the market for somewhere in the region
0:05:47 > 0:05:51of £525,000 to achieve offers quite close to that.
0:05:51 > 0:05:54And I know he said he would leave the layout as it is,
0:05:54 > 0:05:58but you know me, I always want to know all the options.
0:05:59 > 0:06:02Dividing the property to add an extra bedroom,
0:06:02 > 0:06:05be it the third bedroom, would actually add quite
0:06:05 > 0:06:08a substantial amount of value to the potential rental of the property.
0:06:08 > 0:06:09I would expect it, in that case,
0:06:09 > 0:06:12to rise to somewhere in the region
0:06:12 > 0:06:14of £2,000 to £2,200 per calendar month.
0:06:14 > 0:06:17But given the fact that we haven't changed the square footage,
0:06:17 > 0:06:22the sales value will probably remain quite close to what I have suggested.
0:06:22 > 0:06:24Well, it is a desirable area and
0:06:24 > 0:06:27period properties like this are always going to be in demand.
0:06:27 > 0:06:30So it is really great to find one that needs a bit of work,
0:06:30 > 0:06:32that you can really add value to.
0:06:32 > 0:06:34So let's see who spotted the opportunity
0:06:34 > 0:06:36when it went under the hammer.
0:06:37 > 0:06:39Lot number 81.
0:06:39 > 0:06:43And we go to London E1, a very popular area.
0:06:43 > 0:06:44Up-and-coming.
0:06:44 > 0:06:47Nice looking building. Start me at 350.
0:06:47 > 0:06:51Thank you, sir. 350 down here. 355 anywhere?
0:06:51 > 0:06:53Good. 55, thank you. And 60.
0:06:53 > 0:06:57And 60. And five. And five. And 70. And five.
0:06:57 > 0:07:00And 80. And five.
0:07:00 > 0:07:04No. I have got 380 in the front. Five anywhere else? Five anywhere else?
0:07:04 > 0:07:05Against you at the back.
0:07:05 > 0:07:07380 in the front row.
0:07:07 > 0:07:10Great glasses. 380 in the front row.
0:07:10 > 0:07:1285, someone standing. And 90.
0:07:12 > 0:07:16And 95. 400. And five.
0:07:16 > 0:07:18And ten.
0:07:18 > 0:07:19And 15.
0:07:19 > 0:07:21420. And 25.
0:07:21 > 0:07:24And 30. And 435.
0:07:24 > 0:07:27"No," shakes his head firmly.
0:07:27 > 0:07:29Your bid, front row, 430.
0:07:29 > 0:07:32Five anywhere else? Nope? OK.
0:07:32 > 0:07:35First time then at 430.
0:07:36 > 0:07:38Second time at 430.
0:07:38 > 0:07:40I have got my eye on the guy at the back.
0:07:40 > 0:07:46Third and last time at £430,000, front row. Have we all done?
0:07:47 > 0:07:50Well done, sir. 430,000, many thanks.
0:07:55 > 0:07:59The final bid of 430,000 was made by local London property
0:07:59 > 0:08:01developer Jack.
0:08:01 > 0:08:03Jack mainly deals in buy-to-lets
0:08:03 > 0:08:07and already owns a few rental properties in the area.
0:08:07 > 0:08:08So I met him back in Stepney
0:08:08 > 0:08:11to find out his plans for his latest purchase.
0:08:13 > 0:08:16- Jack, good to meet you.- Good to meet you.- Yeah, congratulations.
0:08:16 > 0:08:18Tell me why you wanted to by this flat.
0:08:18 > 0:08:21I bought this property because when I saw it online,
0:08:21 > 0:08:24I saw a lot of potential in it.
0:08:24 > 0:08:27Around here, the prices are really going up, so I thought why not.
0:08:27 > 0:08:29So you saw potential.
0:08:29 > 0:08:32What particularly did you see in terms of potential?
0:08:32 > 0:08:34When I first bought it,
0:08:34 > 0:08:38- I assumed I could turn it into a three bedroom.- OK.
0:08:38 > 0:08:42Yeah, but then when I went to auction and I came back with my builders,
0:08:42 > 0:08:44the plans sort of changed a little bit.
0:08:44 > 0:08:49- I had three builders coming in, and they said it's not advisable.- OK.
0:08:49 > 0:08:53And then they said it, "Keep it as a two-bed because the clientele here
0:08:53 > 0:08:56"wouldn't take...want a small living room and a kitchen."
0:08:56 > 0:08:59So, how has that changed your sort of plan?
0:08:59 > 0:09:03Basically, the profit margin, from 100,000, went down to 40,000.
0:09:03 > 0:09:05It was a bad day at the office, then?
0:09:05 > 0:09:06It was a bad day at the office.
0:09:06 > 0:09:08- THEY LAUGH - Oh, dear!
0:09:08 > 0:09:13Bad day at the office or not, Jack is experienced at this game
0:09:13 > 0:09:18and he isn't daunted by a setback of £60,000.
0:09:18 > 0:09:22- And was it the area more than anything else?- More the area.
0:09:22 > 0:09:25- Location, location, location.- Tell me what is happening around here.
0:09:25 > 0:09:29Around here, the prices are skyrocketing, as in I've bought
0:09:29 > 0:09:32a lot of properties around here since I was younger and we just...
0:09:32 > 0:09:35- We double up every two, three years, so...- Wow.
0:09:35 > 0:09:37- You can't go wrong with that.- Yeah.
0:09:37 > 0:09:39You say younger, did you start young?
0:09:39 > 0:09:42- I did start young, yeah. - How old were you?- I was 19.- 19?!
0:09:42 > 0:09:45- When you first bought your house? - Yeah, a flat.
0:09:45 > 0:09:49That's what it is. I just got into it and I can't look back.
0:09:49 > 0:09:52# The future is so bright
0:09:52 > 0:09:54# I gotta wear shades #
0:09:54 > 0:09:57# I gotta wear shades. #
0:09:57 > 0:10:01Jack may have been wearing funky shades at the auction,
0:10:01 > 0:10:03but they definitely weren't rose-tinted.
0:10:03 > 0:10:08He clearly knows the area and how to make the most of this flat.
0:10:08 > 0:10:10So, tell me what you plan to do it.
0:10:10 > 0:10:14I am planning to just renovate it to a high standard.
0:10:14 > 0:10:18This property is a Georgian place,
0:10:18 > 0:10:20so the standards are quite high
0:10:20 > 0:10:23and the people that would buy it, they are quite well-off.
0:10:23 > 0:10:27- So, what kind of things are you going to do?- I'm going to...
0:10:27 > 0:10:32Tile flooring. I'm going to try and do the walls as well, semi-tile.
0:10:32 > 0:10:33- Oh, OK.- Yeah.
0:10:33 > 0:10:38And then the bathroom... Well, a top-notch bathroom to go in.
0:10:38 > 0:10:41- That's what it is, so...- And the kitchen as well?- And the kitchen.
0:10:41 > 0:10:44- In the kitchen, I am going to keep some of the units.- OK.
0:10:44 > 0:10:47Because if it was going to be a three-bedroom, I would've done
0:10:47 > 0:10:50the kitchen differently. Because I'll keep the two beds, so I'm not going
0:10:50 > 0:10:52to spend a lot of money on the kitchen.
0:10:52 > 0:10:55Jack is thinking with his business head here.
0:10:55 > 0:10:57He wants to maximise the potential profit.
0:10:57 > 0:11:01But there are, of course, some things that might need tackling.
0:11:01 > 0:11:04So, what about the floor? Because in the corridor there...
0:11:04 > 0:11:06The floor is a bit slanted, I know.
0:11:06 > 0:11:11So the builders, they told me they're going to put a bit of building...
0:11:11 > 0:11:14It's like a mushy-mushy thing. I'm not sure exactly.
0:11:14 > 0:11:16- So it will straighten the floor.- Oh.
0:11:16 > 0:11:19So then we'll put... We were supposed to put carpets on,
0:11:19 > 0:11:22- but then they said they can put laminate flooring on.- Oh, brilliant.
0:11:22 > 0:11:23So it goes with all the other rooms.
0:11:23 > 0:11:26- So a builder's magic mushy-mushy stuff.- Magic, yeah.
0:11:26 > 0:11:28That's why it changed from a three-bedroom to a two-bedroom.
0:11:28 > 0:11:31I always take all their advice on board.
0:11:31 > 0:11:33Well, I'm not sure about that mushy-mushy stuff.
0:11:33 > 0:11:37I'll need to look that one up. I hope his builders are right.
0:11:37 > 0:11:40Anyway, for Jack, this is all about the money.
0:11:42 > 0:11:45- Remind us what you paid. - About 430.- 430.
0:11:45 > 0:11:48- And planning to spend how much on the work?- No more than 10,000.- Ten.
0:11:48 > 0:11:51- Yeah.- OK. So that's 440,000. How much do you think
0:11:51 > 0:11:54- you might be able to sell it for? - 515, 520 maximum.
0:11:54 > 0:11:57- But you still make quite a lot. - Yeah.
0:11:57 > 0:12:00By the time I sell it... It is going to be about two months
0:12:00 > 0:12:01- before I sell it, so...- Right.
0:12:01 > 0:12:06- But in a short period of time, it's reasonable.- Reasonable profit, yeah.
0:12:06 > 0:12:07Good on you. That's brilliant.
0:12:07 > 0:12:11- So, what is the sort of timescale for the work?- Two weeks.- Two weeks?!
0:12:11 > 0:12:13Two weeks from now. The builders are...
0:12:13 > 0:12:15From tomorrow, they're going to start coming in and doing it.
0:12:15 > 0:12:19They're my cousins, so we do a lot of properties together.
0:12:19 > 0:12:22And they're just come here, do it and go. That's it.
0:12:22 > 0:12:25- You have a kitchen to do. You got a bathroom to do.- Yeah. Kitchen...
0:12:25 > 0:12:27- Floor, tiling... - Two weeks is more than enough.
0:12:27 > 0:12:31- I've done a lot of them, so I know how it is.- Really? Wow.
0:12:31 > 0:12:34- Is this what you do full-time? - Not full-time.
0:12:34 > 0:12:38- This is a secondary investment.- OK. - I've got a full-time job.
0:12:38 > 0:12:42- What do you do?- Real estate agent. - That's convenient then.
0:12:42 > 0:12:45- Well, congratulations. Good luck with that.- Thank you so much.
0:12:45 > 0:12:47I look forward to seeing how you get on.
0:12:47 > 0:12:49HE LAUGHS
0:12:51 > 0:12:54Well, Jack starting out in the world of properties at a very early age
0:12:54 > 0:12:57and carrying on to this day. And who can blame him?
0:12:57 > 0:13:00I think he has got a great property here. My only concern is -
0:13:00 > 0:13:04can he really get everything done in two weeks?
0:13:04 > 0:13:06You can find out later in the show.
0:13:12 > 0:13:15This is Dartford, in Kent,
0:13:15 > 0:13:18famous for the tunnel under the Thames that bears its name.
0:13:18 > 0:13:21Like many parts of the UK, Dartford did face decline
0:13:21 > 0:13:24from the loss of some of its heavy industry.
0:13:24 > 0:13:25However, nowadays,
0:13:25 > 0:13:29this is an area in full multi-million pound regeneration
0:13:29 > 0:13:34mode, with 94 million being spent on revamping the town centre.
0:13:37 > 0:13:40Well, will all this regeneration rub off on the property
0:13:40 > 0:13:42I am here to see?
0:13:42 > 0:13:45To be honest, by the look of things on the other side of the street,
0:13:45 > 0:13:47there is still a bit of industry round here.
0:13:47 > 0:13:50Now, as you can see, it is a bit of a busy main road.
0:13:50 > 0:13:54You've got lots of lorries and cars and trucks hurdling past.
0:13:54 > 0:13:58Now, the guide price for this house, £150,000 to £160,000.
0:13:58 > 0:14:00So let's have a look to see
0:14:00 > 0:14:03if this bit of Dartford is also in need of regeneration.
0:14:05 > 0:14:08Well, at first glance, the roof looks free of broken tiles.
0:14:08 > 0:14:11And apart from the moss, it is in a reasonable state.
0:14:11 > 0:14:14And that frontage is good too for visitors.
0:14:14 > 0:14:17Certainly enough parking out there for a couple of cars,
0:14:17 > 0:14:18which is a real bonus.
0:14:18 > 0:14:21And it is nice and quiet once you've closed the door.
0:14:21 > 0:14:22The property is in a bit of a state.
0:14:22 > 0:14:25And actually, when you look, yeah, there is
0:14:25 > 0:14:29a lot going on in here and it needs a whole load of modernisation -
0:14:29 > 0:14:32paint, carpet, a big old clean.
0:14:32 > 0:14:34But what I do like is the space.
0:14:34 > 0:14:36It has already been open-planned,
0:14:36 > 0:14:39so you've got a nice L-shaped kitchen there.
0:14:39 > 0:14:41(I know it doesn't look great at the moment.)
0:14:41 > 0:14:43And a really good area for a family to dine here.
0:14:43 > 0:14:46You could make the most of this chimney breast,
0:14:46 > 0:14:48like they have done, with a bit of a feature wall.
0:14:48 > 0:14:50But not a bad space at all.
0:14:50 > 0:14:53And it would certainly work really well for a family.
0:14:55 > 0:14:59I am definitely taken with the two good downstairs living areas.
0:14:59 > 0:15:01And there is an added bit of space out the back.
0:15:05 > 0:15:08Well, if you are like me and you are finding it hectic and noisy
0:15:08 > 0:15:13out the front, I am very happy to say, it is so peaceful out here!
0:15:13 > 0:15:15Although it is a bit of a mess, I think
0:15:15 > 0:15:18hiring a skip would be first on my agenda.
0:15:18 > 0:15:21But let's not turn our nose up at this nice family-size garden.
0:15:21 > 0:15:25You could even think about having a nice conservatory on the back
0:15:25 > 0:15:27of the house here, because there certainly is enough room.
0:15:29 > 0:15:33Back inside and on the first floor, you've got a family bathroom,
0:15:33 > 0:15:36which needs a bit of work, as does the master bedroom,
0:15:36 > 0:15:39the second bedroom and the third.
0:15:39 > 0:15:42Now, this space here has been eaten into somewhat by a set
0:15:42 > 0:15:45of stairs leading up to the loft space.
0:15:48 > 0:15:51Now, in the auction catalogue, it says there are three bedrooms
0:15:51 > 0:15:54and a loft room. This certainly wouldn't pass as a bedroom.
0:15:54 > 0:15:58And it would be worth applying for planning permission
0:15:58 > 0:16:02to be able to convert this properly. But it is a great space.
0:16:02 > 0:16:04You could definitely use this for some storage.
0:16:04 > 0:16:06You could sit up here and get your laptop and your computer.
0:16:06 > 0:16:10The great thing is, there is some natural light coming in over there.
0:16:10 > 0:16:13So all in all, I would say, this is a bit of a bonus.
0:16:14 > 0:16:18OK, so it all needs a clear out and a bit more work besides,
0:16:18 > 0:16:20but you have definitely got all the building blocks
0:16:20 > 0:16:22here for a great family home.
0:16:23 > 0:16:26What does a local estate agent make of the mid-terrace
0:16:26 > 0:16:31and its auction guide price of 150,000 to 160,000?
0:16:31 > 0:16:34I think what you need to do to this property
0:16:34 > 0:16:37is fit a new bathroom and kitchen. The whole property
0:16:37 > 0:16:38needs decorating throughout.
0:16:38 > 0:16:42In my opinion, I think you'd be looking at spending at least £20,000
0:16:42 > 0:16:44to update this to a good standard.
0:16:44 > 0:16:46Fair enough. But once done up,
0:16:46 > 0:16:50what might the mid-terrace fetch on the resale market?
0:16:50 > 0:16:52Once the property has been updated to a good standard,
0:16:52 > 0:16:56I would say the property is worth £235,000.
0:16:56 > 0:16:58And on the rental market?
0:16:58 > 0:17:02In my opinion, the property would rent for £950 per calendar month.
0:17:04 > 0:17:05Well, let's face it,
0:17:05 > 0:17:10this little bit of Dartford is definitely in need of regeneration.
0:17:10 > 0:17:14But where some people see problems, others, well,
0:17:14 > 0:17:18they just see opportunity. It is the name of the game on this programme.
0:17:18 > 0:17:21So let's see who grabbed this opportunity at the auction.
0:17:23 > 0:17:25So, lot 102,
0:17:25 > 0:17:27the three-bedroom house for improvement.
0:17:27 > 0:17:31Got a guide of 150 to 160. Start me where you will.
0:17:31 > 0:17:33£150,000?
0:17:33 > 0:17:35140 to start me.
0:17:35 > 0:17:39Thank you very much. 140, sorry, took it there. 142.
0:17:39 > 0:17:41142.
0:17:41 > 0:17:44At 140... Five. And 47.
0:17:44 > 0:17:47147. And 150.
0:17:47 > 0:17:50150. 152. Back of the room...
0:17:50 > 0:17:54It took a while, but the bidding crept up past the top guide price
0:17:54 > 0:17:56of 160,000.
0:17:56 > 0:18:01We rejoin the action at £187,000.
0:18:01 > 0:18:02187.
0:18:02 > 0:18:06At 187,000, gentleman's bid right at the very back of the room.
0:18:06 > 0:18:09At 187,000 then...
0:18:09 > 0:18:11188. And nine.
0:18:11 > 0:18:13189.
0:18:13 > 0:18:16190. 191.
0:18:16 > 0:18:18191.
0:18:18 > 0:18:20192. 193.
0:18:21 > 0:18:25192,000 on my right. 193.
0:18:26 > 0:18:29192,000 for the first time.
0:18:29 > 0:18:33192,000 for the second time.
0:18:33 > 0:18:36192,000, third and final time.
0:18:36 > 0:18:39At 192,000, all done.
0:18:39 > 0:18:41Sold at 192,000.
0:18:43 > 0:18:48And that successful bid of 192,000 was placed by Johnny.
0:18:48 > 0:18:49Johnny is a qualified plumber
0:18:49 > 0:18:53and electrician who runs a family portfolio.
0:18:53 > 0:18:56He has been on the show before when he and his uncle Ehsaas
0:18:56 > 0:18:59bought two two-bedroom flats in Bexleyheath.
0:18:59 > 0:19:03- Did you do much research with these? - Nn...no.
0:19:03 > 0:19:05- Any research?- Nn...no.
0:19:05 > 0:19:08- Did you read the legal pack? - Nn...no.
0:19:08 > 0:19:10Not at all.
0:19:10 > 0:19:12- Did you view them?- Nn...no.
0:19:12 > 0:19:15- Did you know you were going to buy them?- Not at all.
0:19:15 > 0:19:19Johnny and moneyman Uncle Ehsaas broke all the rules.
0:19:19 > 0:19:23But after buying blind last time, they did get a healthy profit.
0:19:23 > 0:19:27With trepidation, I wonder if they've changed their approach.
0:19:27 > 0:19:30Now, had you viewed this property prior to auction?
0:19:30 > 0:19:32From the outside, yes.
0:19:32 > 0:19:37- From the outside? So you didn't look inside the property at all?- No.
0:19:37 > 0:19:39- Did you read the legal pack?- Nope.
0:19:39 > 0:19:43- Did you do any research at all?- No.
0:19:43 > 0:19:46- Did you know you are going to buy this on auction day?- No.
0:19:46 > 0:19:47What?!
0:19:47 > 0:19:50So what happened? How come you've ended up with this property?
0:19:50 > 0:19:53On auction day, we were looking at a different property,
0:19:53 > 0:19:55and we didn't get it.
0:19:55 > 0:19:58So rather than go home with nothing, I thought we'd buy this.
0:19:58 > 0:20:00So what did you do, just open the catalogue and think,
0:20:00 > 0:20:01"I know the area"?
0:20:01 > 0:20:05More or less, yeah. We had a look through the catalogue.
0:20:05 > 0:20:06We had a dabble on a few others.
0:20:06 > 0:20:08They went over what we thought they were worth.
0:20:08 > 0:20:10- And we ended up with this one.- Wow.
0:20:10 > 0:20:13So when you bought this property and you opened the door
0:20:13 > 0:20:16and you had a look inside, what did you then think?
0:20:16 > 0:20:18HE CHUCKLES "We've got some work to do."
0:20:18 > 0:20:21But, yeah, that's... If you're going to buy blind,
0:20:21 > 0:20:23you've got to take the risks.
0:20:23 > 0:20:27'OK, I am getting a distinct feeling of deja vu talking to Johnny.'
0:20:27 > 0:20:31But once again, his risk might just pay off.
0:20:31 > 0:20:34Although there still may be a nasty or two lurking under all
0:20:34 > 0:20:35the stuff in here.
0:20:37 > 0:20:38# And get me waking up
0:20:38 > 0:20:42# Shaken up, tangled up. #
0:20:42 > 0:20:43Top of the to do list -
0:20:43 > 0:20:47a couple of skips to deal with this tangled turmoil.
0:20:47 > 0:20:50Should keep Johnny's team occupied for a while.
0:20:50 > 0:20:53What will you be doing to transform it?
0:20:53 > 0:20:56- We gut it back to the bones.- Yeah.
0:20:56 > 0:21:00Rewire it, replumb it, new bathroom, new kitchen.
0:21:00 > 0:21:03- A couple of walls might be coming down.- Really?- Yes.
0:21:03 > 0:21:05So tell me about the walls that you can see coming down,
0:21:05 > 0:21:08because I actually think this ground-floor space does
0:21:08 > 0:21:09work quite well as it is.
0:21:09 > 0:21:11It does work well, but, unfortunately,
0:21:11 > 0:21:13the kitchen is rather small.
0:21:13 > 0:21:14There is no worktop space,
0:21:14 > 0:21:18so we are of separating it - having the kitchen separate
0:21:18 > 0:21:21with the wall open, so you have a walk-through
0:21:21 > 0:21:23- from the kitchen to the diner.- No!
0:21:23 > 0:21:25- Really?- Really.
0:21:25 > 0:21:28I think the best thing about this property is the fact that it
0:21:28 > 0:21:31has got that lovely communal open-plan living space.
0:21:31 > 0:21:33And I think that does work really well for families.
0:21:33 > 0:21:35You certainly have got quite a run of, you know,
0:21:35 > 0:21:37work space along there.
0:21:37 > 0:21:40To have a nice table with, you know, your kids having dinner...
0:21:40 > 0:21:42- I think it works.- It might do.
0:21:42 > 0:21:44But as I said, the lounge is very small,
0:21:44 > 0:21:47so we're still on the drawing board. We haven't decided yet.
0:21:47 > 0:21:50Once we clean it out and see what actual space we do have -
0:21:50 > 0:21:53cos, obviously, there is a lot of rubbish everywhere -
0:21:53 > 0:21:54then we'll go from there and see what works.
0:21:54 > 0:21:56Now, what about that loft space?
0:21:56 > 0:21:59Because I know it is currently a three-bedroom property with a loft.
0:21:59 > 0:22:01There's certainly not building regs up there.
0:22:01 > 0:22:03No, no building regs up there.
0:22:03 > 0:22:05We could convert it to a four-bedroom,
0:22:05 > 0:22:08but, you know, then we'd have to do an extension to make it bigger.
0:22:08 > 0:22:11So what we'll probably do - revert back to a three-bedroom,
0:22:11 > 0:22:14put a loft ladder and still have a room up there, a usable room.
0:22:14 > 0:22:18But keep it a three-bedroom with a big loft space.
0:22:18 > 0:22:20So, what sort of budget are you looking at to do the work here?
0:22:20 > 0:22:23Probably 10,000 to 15,000.
0:22:23 > 0:22:26So you think you can do this place top to bottom on £10,000 to £15,000?
0:22:26 > 0:22:27Yes.
0:22:27 > 0:22:30How long do think it is going to take you?
0:22:30 > 0:22:32Normally, it takes us about a month.
0:22:32 > 0:22:34In this case, it will take us two months,
0:22:34 > 0:22:36just because we have work elsewhere.
0:22:36 > 0:22:38So we'll be using it as an infill.
0:22:38 > 0:22:42But, yeah, in about two months, this will be up and running, hopefully.
0:22:42 > 0:22:45I like Johnny's no-nonsense attitude.
0:22:45 > 0:22:48He and his family are clearly used to projects like this.
0:22:48 > 0:22:52And it sounds like the whole thing may be something of a walk in the,
0:22:52 > 0:22:53eh, kitchen?
0:22:56 > 0:22:58How did you get into property developing?
0:22:58 > 0:23:00A family member bought one house.
0:23:00 > 0:23:02Then we converted that into three flats.
0:23:02 > 0:23:05We liked it, you know, not being told what to do.
0:23:05 > 0:23:08You know, and it just progressed from there.
0:23:08 > 0:23:11Bought another one, and it just all kind of escalated.
0:23:11 > 0:23:14And you are very busy. I mean, have you got time to buy any more?
0:23:14 > 0:23:15Not at the moment.
0:23:15 > 0:23:18And you've certainly not got time to look through that auction catalogue!
0:23:18 > 0:23:21- It is a waste of time. - Yeah, but you've not got time to do
0:23:21 > 0:23:23- the viewings, that is the problem. - That is the problem, yes.
0:23:23 > 0:23:25We haven't got time for the viewings.
0:23:25 > 0:23:27Would you ever buy blind again?
0:23:27 > 0:23:31Would you advocate anybody watching to do what you've done?
0:23:31 > 0:23:33No. But I would do it again.
0:23:33 > 0:23:36This is what we do. At the end of the day, we can put it...
0:23:36 > 0:23:39Like this place here, it's quite run down, but within eight weeks,
0:23:39 > 0:23:40we'll have it back up on the market.
0:23:40 > 0:23:43But it is not very easy if you don't have the contacts and the know-how.
0:23:43 > 0:23:45The contacts, the know-how and the confidence.
0:23:45 > 0:23:47Let's be honest, you didn't look inside it,
0:23:47 > 0:23:50you didn't know you were going to buy it,
0:23:50 > 0:23:52you didn't read the legal pack and you didn't view it.
0:23:52 > 0:23:55We had the money in place, that's the only thing.
0:23:55 > 0:23:56- You did have the money in place. - Yes.
0:23:56 > 0:23:59- And are you looking to rent this out?- We are looking to sell it.
0:23:59 > 0:24:02But again, depending on what the market says.
0:24:02 > 0:24:03The market will decide.
0:24:03 > 0:24:05Do you think you bought this for a bargain price on auction day
0:24:05 > 0:24:08- because of how it is inside? - Definitely.
0:24:08 > 0:24:10Do you think it would have put a lot of people off coming in?
0:24:10 > 0:24:13Because it is just surface debris and a bit of a smell.
0:24:13 > 0:24:16A lot of people are put off by the smell and stuff like that,
0:24:16 > 0:24:17where you have to look through that.
0:24:17 > 0:24:20A couple of skips and it's gone, and you're back to the bare-bones.
0:24:20 > 0:24:22But a lot of people get put off by that.
0:24:22 > 0:24:24Johnny certainly knows what he is doing
0:24:24 > 0:24:27and is willing to tackle whatever is behind the front door here.
0:24:27 > 0:24:31And he also knows the local market.
0:24:31 > 0:24:33We have to stand above the rest on the market.
0:24:33 > 0:24:36So depending on what is going on, we kind of fit into that scale.
0:24:36 > 0:24:38Don't forget, it has to stand the test of time,
0:24:38 > 0:24:41- especially if you're renting it out. - Of course. At the end of the day,
0:24:41 > 0:24:43there's no point putting too cheap in if you'll rent it -
0:24:43 > 0:24:45you'll be forever coming back.
0:24:45 > 0:24:47If I keep coming back, I can't go to the auction.
0:24:47 > 0:24:49We don't want to stop you from going to the auction,
0:24:49 > 0:24:50- do we, Johnny?- No, of course not.
0:24:50 > 0:24:52It has been lovely meeting you today. I am so excited.
0:24:52 > 0:24:54Congratulations. But try and slow down a bit,
0:24:54 > 0:24:57- and maybe have a little look through the letterbox next time?- Maybe.
0:24:57 > 0:25:00- All right.- Thank you. - Thank you.- Thank you.
0:25:02 > 0:25:05Well, Johnny certainly has a laid-back attitude
0:25:05 > 0:25:07to property development.
0:25:07 > 0:25:10Bid for anything that takes your fancy on the day,
0:25:10 > 0:25:12just have a flick through the catalogue.
0:25:12 > 0:25:14And as long as you know the area, that's all right.
0:25:14 > 0:25:18Don't worry about legal packs or even budgets. Nah!
0:25:19 > 0:25:24Join me later in the programme to find out if his philosophy pays off.
0:25:26 > 0:25:30Coming up, high-rise money worries in Salford, Manchester.
0:25:30 > 0:25:32I'm going to try getting a mortgage on this place.
0:25:32 > 0:25:35If not, I may have to sell it.
0:25:37 > 0:25:40And is Johnny having second thoughts about selling in Dartford?
0:25:40 > 0:25:43We have to bear into mind that we might also have to
0:25:43 > 0:25:45rent for a few years or just leave it in the portfolio.
0:25:48 > 0:25:50EARLY-20TH-CENTURY PIANO MUSIC
0:25:50 > 0:25:54Back now to the up-and-coming area of Stepney Green, East London,
0:25:54 > 0:25:58to see this first-floor, two-bedroom flat which was
0:25:58 > 0:26:02purchased by estate agent and part-time property developer
0:26:02 > 0:26:07Jack for £430,000 with a view to selling it on.
0:26:09 > 0:26:13I've bought a lot of properties around here, since I was younger.
0:26:13 > 0:26:16- We double up every two, three years, so...- Wow.
0:26:16 > 0:26:17You can't go wrong with that.
0:26:17 > 0:26:21- So, when you say younger, how old were you?- I was 19.- 19?!
0:26:21 > 0:26:24- When you first bought your house? - Yeah, a flat. That's what it is.
0:26:24 > 0:26:27I just got into it and I can't look back.
0:26:29 > 0:26:32Jack planned to sort out the uneven hall floor,
0:26:32 > 0:26:36redo the entire flat floor covering, refurbish the bathroom
0:26:36 > 0:26:38and brighten up the existing kitchen
0:26:38 > 0:26:43and redecorate, all for a very tight £10,000 budget,
0:26:43 > 0:26:45with an even tighter timescale.
0:26:45 > 0:26:48- YELLS:- OK, lose the blippity-blunk music!
0:26:50 > 0:26:51Thanks.
0:26:51 > 0:26:54- What is the sort of timescale for the work?- Two weeks.- Two weeks?!
0:26:54 > 0:26:56Two weeks from now. The builders are...
0:26:56 > 0:26:58From tomorrow, they're going to start coming in and do it.
0:26:58 > 0:27:02They're my cousins, so we do a lot of properties together.
0:27:02 > 0:27:05And they're just not come here, do it and go. And that's it.
0:27:07 > 0:27:11Well, we are back one month later to find out what Jack has achieved.
0:27:11 > 0:27:14And you can see for yourself.
0:27:14 > 0:27:17# Don't believe me, just watch Come on
0:27:17 > 0:27:19# Do-do-do, do-do-do... #
0:27:19 > 0:27:22New kitchen units on that budget?
0:27:22 > 0:27:24# Don't believe me, just watch
0:27:26 > 0:27:29# Do-do-do, do-do-do... #
0:27:29 > 0:27:32Is the luxury bathroom possible here?
0:27:32 > 0:27:35# Don't believe me, just watch! #
0:27:35 > 0:27:37You bet.
0:27:37 > 0:27:38# Don't believe me just watch
0:27:38 > 0:27:42# Hey, hey, hey, oh! #
0:27:42 > 0:27:47Quality fittings, tiles and flooring really do funk up this flat.
0:27:49 > 0:27:51# Uptown Funk you up
0:27:51 > 0:27:53# Uptown Funk you up. #
0:27:55 > 0:27:58As it was, the lounge wasn't conducive to lounging in.
0:27:58 > 0:28:00Now...
0:28:00 > 0:28:03# Don't believe me, just watch Come on!
0:28:03 > 0:28:05# Do-do-do... #
0:28:05 > 0:28:07Seeing is believing with the biggest bedroom.
0:28:07 > 0:28:11# Don't believe me, just watch. #
0:28:11 > 0:28:13Contemporary lighting completes the picture,
0:28:13 > 0:28:18not forgetting the smaller, now much funkier, bedroom.
0:28:18 > 0:28:21Hard to believe all this was done in two weeks. Or was it?
0:28:23 > 0:28:28It has been three weeks. But it is not much of a big deal, to be honest.
0:28:28 > 0:28:31So it is only a week. It's not another...
0:28:31 > 0:28:35In the kitchen, I changed most of the...
0:28:35 > 0:28:36Well, everything, to be honest -
0:28:36 > 0:28:41the units, the hob, the oven, the extractor fan and the sink.
0:28:41 > 0:28:43The most expensive thing was the marble worktop here,
0:28:43 > 0:28:45which cost quite a bit,
0:28:45 > 0:28:47which delayed the project as well.
0:28:48 > 0:28:52Waiting for the delivery of the high quality worktop caused
0:28:52 > 0:28:54most of the delay.
0:28:54 > 0:28:57Originally, Jack was planning on spending £10,000 on the whole
0:28:57 > 0:29:03flat, but this is a high-spec finish, so why the change of plan?
0:29:03 > 0:29:04At first, I wanted a three-bed.
0:29:04 > 0:29:08But after buying the place and getting advice from other people,
0:29:08 > 0:29:11they suggested this was going to be too small have a three-bed.
0:29:11 > 0:29:14Then I just went away to a higher standard as a two-bed.
0:29:14 > 0:29:17So the profit probably has gone down a bit, but it is still profit.
0:29:17 > 0:29:22The higher-spec fittings impacted on the budget too by £1,500,
0:29:22 > 0:29:25taking it to 11,500.
0:29:25 > 0:29:29Added to the purchase price of 430,000,
0:29:29 > 0:29:34that takes Jack's total investment to £441,500.
0:29:39 > 0:29:42We invited two local estate agents around to establish
0:29:42 > 0:29:46if Jack will turn a profit with his plan to sell on
0:29:46 > 0:29:50and get their opinions on the work and finish of the property,
0:29:50 > 0:29:54starting with the agent who saw the flat just after it was purchased.
0:29:57 > 0:29:59The property has undertaken
0:29:59 > 0:30:01a lot of renovation
0:30:01 > 0:30:03and quite a little bit of work has been done.
0:30:03 > 0:30:05It is presenting
0:30:05 > 0:30:09very neutral at the moment, and I think that is a good thing.
0:30:09 > 0:30:12My first thoughts were that it was a well-proportioned,
0:30:12 > 0:30:15two-double bedroom flat. And I'd say in terms of
0:30:15 > 0:30:18the refurbishment, it was done to a high standard.
0:30:18 > 0:30:21Very bright and airy and well located.
0:30:21 > 0:30:23And although Jack isn't planning on renting, it is
0:30:23 > 0:30:26always worth having a fallback position.
0:30:26 > 0:30:29So, what would a flat like this in a condition like this
0:30:29 > 0:30:31command on the rental market?
0:30:31 > 0:30:36It is a very buoyant rental area for professionals looking to
0:30:36 > 0:30:39relocate into the city, commute-wise.
0:30:39 > 0:30:41In terms of a rental valuation,
0:30:41 > 0:30:46I'd expect to achieve a figure of £1,900 per calendar month.
0:30:46 > 0:30:48I think we are looking probably
0:30:48 > 0:30:51between £1,700 to £1,800 per calendar month.
0:30:51 > 0:30:54I believe at the top end, the property should be furnished,
0:30:54 > 0:30:57because that again will attract a better quality of tenant.
0:30:57 > 0:31:00That's an average of £1,800 per calendar month.
0:31:00 > 0:31:04Yeah, that is what I was expecting. If I was going to rent it out,
0:31:04 > 0:31:06that is the price I would market it for.
0:31:08 > 0:31:11That is a yield of just under 5%, not fantastic.
0:31:11 > 0:31:15But this was renovated with a resale in mind, not to rent,
0:31:15 > 0:31:21so how will Jack's £441,500 investment fair on the open market?
0:31:22 > 0:31:26I would expect to sell the property in the region of £500,000.
0:31:26 > 0:31:31And what about the agent who predicted a resale of £525,000
0:31:31 > 0:31:33when he saw it in its original state?
0:31:35 > 0:31:39I still believe the property should go on the market for £525,000 to
0:31:39 > 0:31:41achieve offers quite close to that.
0:31:41 > 0:31:45525, that was my ideal initial thought. 525.
0:31:45 > 0:31:47That is what I am going to market it for.
0:31:47 > 0:31:49And if I market it for that...
0:31:49 > 0:31:52If I wait a month later, I can market it for a bit more.
0:31:52 > 0:31:55Because as spring comes up and the price always goes up.
0:31:55 > 0:32:00Jack knows his business. He has been doing it since he was 19.
0:32:00 > 0:32:03For three weeks' work, he has the potential profit of just
0:32:03 > 0:32:08under £84,000, less the usual taxes and expenses.
0:32:08 > 0:32:10So, sticking with the two-bedroom configuration
0:32:10 > 0:32:12and going for a high-end finish
0:32:12 > 0:32:15doesn't seem to have harmed his profit margin from what I can see.
0:32:15 > 0:32:19And it looks like it is not just high-speed makeovers he does,
0:32:19 > 0:32:21selling is high-speed too.
0:32:21 > 0:32:24I did speak to a few of my friends who are agents,
0:32:24 > 0:32:26and they said they can sell it within a month or so.
0:32:26 > 0:32:28So that should be fine.
0:32:28 > 0:32:31I think you can guess the answer to this next one.
0:32:31 > 0:32:33Will you be back at the auction someday soon, Jack?
0:32:33 > 0:32:36To be honest, actually, we are going to the auction
0:32:36 > 0:32:37and bidding with other people.
0:32:37 > 0:32:41I mean, I go to auctions with my dad and he gets excited, I get excited.
0:32:41 > 0:32:44And that if something comes up, we snatch it up as we can.
0:32:48 > 0:32:50It could be argued that Manchester is becoming
0:32:50 > 0:32:53the rock and roll capital of the North.
0:32:53 > 0:32:56With a heritage of bands like The Happy Mondays, Oasis
0:32:56 > 0:32:59and The Hacienda Club, the foundations are clear.
0:32:59 > 0:33:01# We built this city
0:33:02 > 0:33:08# We built this city on rock and roll
0:33:08 > 0:33:10# We built this city
0:33:11 > 0:33:16# We built this city on rock and roll. #
0:33:18 > 0:33:21The property I'm here to see is technically in Salford, but I know
0:33:21 > 0:33:25Manchester reasonably well and you are more or less in the town centre.
0:33:25 > 0:33:28Anyway, it is a one-bed flat.
0:33:28 > 0:33:30And it's on the 17th floor...
0:33:30 > 0:33:32of that.
0:33:32 > 0:33:35The flat was guided at £60,000.
0:33:35 > 0:33:38And the block began construction in the '60s.
0:33:38 > 0:33:40# Don't you remember that
0:33:40 > 0:33:42# Remember, remember... #
0:33:42 > 0:33:45It is one of the tallest buildings in Salford
0:33:45 > 0:33:48and was once a tax office.
0:33:48 > 0:33:50Now the first 11 floors are a hotel.
0:33:50 > 0:33:52But above that level, the space is given over
0:33:52 > 0:33:56to one- and two-bed apartments.
0:33:56 > 0:33:59The communal areas throughout, although a little bit dated,
0:33:59 > 0:34:01have been maintained well.
0:34:03 > 0:34:04OK, what have we got?
0:34:05 > 0:34:08OK, bathroom here which looks in good condition.
0:34:08 > 0:34:12Slightly dated, but if you could tidy that up. Depending on what you
0:34:12 > 0:34:14wanted to do with this flat, leave it or change it.
0:34:14 > 0:34:16What have we got in here?
0:34:17 > 0:34:20OK, water in there. Water storage tank in there.
0:34:20 > 0:34:23You've got a bedroom here, which is of a decent size.
0:34:23 > 0:34:25You've got a double bed in there, two singles quite easily.
0:34:25 > 0:34:29Nice big window. And then it is through into the main area here.
0:34:29 > 0:34:32Your lounge, your diner and your kitchen area as well.
0:34:32 > 0:34:35So you've got a bit of floor space here.
0:34:35 > 0:34:38It is a one-bed flat, so you get what you see, really, more or less.
0:34:38 > 0:34:42But the selling point for me is that huge window there, which looks
0:34:42 > 0:34:44over the whole of Salford and Manchester.
0:34:46 > 0:34:50But high-rise city living may not be all it appears to be,
0:34:50 > 0:34:53especially if you don't look out for pitfalls like parking.
0:34:53 > 0:34:54There isn't any in this block.
0:34:54 > 0:34:58And the service charge of nearly £1,600 per annum.
0:34:58 > 0:34:59And there's more.
0:35:01 > 0:35:04So you like the property and you love the location, but there
0:35:04 > 0:35:08are a few issues you may have to overcome with a property like this.
0:35:08 > 0:35:12High-street lenders are not very keen on giving out mortgages
0:35:12 > 0:35:14to properties that are above five floors
0:35:14 > 0:35:17and properties that are above commercial buildings.
0:35:17 > 0:35:19This is above a hotel.
0:35:19 > 0:35:24So you might find it hard raising the money for a flat like this.
0:35:24 > 0:35:27In these cases, there is no substitute for local knowledge.
0:35:27 > 0:35:31And what better way to get it than to invite a local property expert
0:35:31 > 0:35:34from the auction house who sold the flat to give his thoughts
0:35:34 > 0:35:36and valuations on this property?
0:35:38 > 0:35:40So that is precisely what we did.
0:35:40 > 0:35:43# You take me up
0:35:43 > 0:35:46# So high
0:35:46 > 0:35:49# Now I never want to come back down. #
0:35:51 > 0:35:53We are near all the high-end department stores,
0:35:53 > 0:35:55good restaurants, good bars.
0:35:55 > 0:35:58It is a really good location and great transport links.
0:35:58 > 0:36:00This will be popular with buy-to-let investors.
0:36:00 > 0:36:04However, the property isn't currently mortgageable.
0:36:04 > 0:36:07There are a number of reasons why lenders have an
0:36:07 > 0:36:09embargo on lending on these flats.
0:36:09 > 0:36:12As well as being above five floors and a commercial property,
0:36:12 > 0:36:15there is a history of repossessions
0:36:15 > 0:36:17and the reinforced concrete construction
0:36:17 > 0:36:21and the general oversaturation of buy-to-let mortgages in the block
0:36:21 > 0:36:23are all factors.
0:36:23 > 0:36:25It is great for a buy-to-let investor that has got the cash
0:36:25 > 0:36:27and wants a good return
0:36:27 > 0:36:30because it is a very popular location and the rents are quite
0:36:30 > 0:36:31healthy on this building.
0:36:31 > 0:36:34But what does a "quite healthy rental" translate to
0:36:34 > 0:36:35in the rent book?
0:36:35 > 0:36:38If this property is tidied up a little bit,
0:36:38 > 0:36:41you could put it on the market at 750 per calendar month.
0:36:41 > 0:36:44Yes, I would say that is better than healthy.
0:36:44 > 0:36:46If you got it for the guide price of 60 grand,
0:36:46 > 0:36:49that would mean a 15% yield.
0:36:49 > 0:36:50Too good to be true?
0:36:50 > 0:36:54Well, it could be a hard property if you have to sell on.
0:36:54 > 0:36:58With that in mind, what about the resale value?
0:36:58 > 0:37:00If this was to go back out on the market,
0:37:00 > 0:37:03to a buy-to-let investor, you would be looking at
0:37:03 > 0:37:05between £70,000 and £75,000.
0:37:05 > 0:37:09So this is a great flat with great views as well, but who is going
0:37:09 > 0:37:12to raise the cash to buy this place when it goes under the hammer?
0:37:12 > 0:37:14One-bedroom apartment.
0:37:14 > 0:37:17Service charge arrears
0:37:17 > 0:37:19payable by the buyer.
0:37:19 > 0:37:22Two telephone bids. Anybody else here for this one?
0:37:22 > 0:37:25Start me off at £50,000. 50 here.
0:37:25 > 0:37:29At 50, I'm bid. I have £50,000 there.
0:37:29 > 0:37:30In ones, nice and easy for you.
0:37:30 > 0:37:3251. 52.
0:37:32 > 0:37:3453. 54.
0:37:34 > 0:37:3655.
0:37:36 > 0:37:3856. 57. 58.
0:37:40 > 0:37:43The bidding quickly reaches the guide price,
0:37:43 > 0:37:44and we rejoin at £62,000.
0:37:44 > 0:37:4662.
0:37:46 > 0:37:4963. 64.
0:37:51 > 0:37:55Going in £1,000 bids, we rejoin again at £73,000.
0:37:55 > 0:38:0073. 73, I'm bid. 74, can you?
0:38:00 > 0:38:0274, I'm bid. 75.
0:38:04 > 0:38:07You, sir? 75? 76, can you?
0:38:07 > 0:38:1177. You are very close together, you lot. 77.
0:38:11 > 0:38:1478, behind you, with the waistcoat.
0:38:14 > 0:38:17No? 78, seated, original better.
0:38:17 > 0:38:1978. 79.
0:38:20 > 0:38:23Back in at 79 in the third row.
0:38:23 > 0:38:25Original bidder, 80.
0:38:25 > 0:38:27At £80,000 then.
0:38:27 > 0:38:29First time. On the fifth row.
0:38:29 > 0:38:31Second time. Selling it.
0:38:32 > 0:38:36Well done, sir. Can I have your paddle number, please? Yes, it's you.
0:38:36 > 0:38:41And the successful bid of £80,000, 20,000 over the guide price,
0:38:41 > 0:38:44came from Mark, who lives in Manchester.
0:38:44 > 0:38:46I met him to find out more.
0:38:46 > 0:38:49- Nice to meet you, Mark, and congratulations.- Thank you.
0:38:49 > 0:38:52Tell me firstly about the auction experience.
0:38:52 > 0:38:53It was quite terrifying.
0:38:53 > 0:38:56First time being at an auction.
0:38:56 > 0:39:00And, yeah, when I was sat down waiting for it,
0:39:00 > 0:39:03a group of people sat behind me
0:39:03 > 0:39:07that were talking about bidding on the property that I was there for.
0:39:07 > 0:39:10- Scary, isn't it?- Very scary. - Was this your first choice?
0:39:10 > 0:39:15- Well, I was only looking for that property.- Did you go on your own?
0:39:15 > 0:39:17Did you have anybody to support you there?
0:39:17 > 0:39:21- I was on my own.- On your own for the first time?- I know. I didn't...
0:39:21 > 0:39:25- Yeah. Left alone.- You've now got the property that you wanted.- Yep.
0:39:25 > 0:39:27Now, what are you going to do with it?
0:39:27 > 0:39:28How are you going to turn it around?
0:39:28 > 0:39:33Well, luckily, it is in really good condition.
0:39:33 > 0:39:34Um...
0:39:34 > 0:39:37Probably, it would have been a good idea to view it
0:39:37 > 0:39:39before auctioning on it, but, uh...
0:39:39 > 0:39:43You broke one of the Hammer rules. You didn't view the property.
0:39:43 > 0:39:48- Oh, no. Oh, no. Tell me you read the legal pack.- I read the legal pack.
0:39:48 > 0:39:49That's good. That's good.
0:39:49 > 0:39:54Well, a lot of the apartments in this block, I think
0:39:54 > 0:39:58there are quite a few repossessions because of the history
0:39:58 > 0:39:59of the building.
0:40:01 > 0:40:06They first sold quite low and then sold for too much and then...
0:40:06 > 0:40:08everyone lost quite a lot of money.
0:40:08 > 0:40:12Yes, you can get your fingers burned in property, as we all know.
0:40:12 > 0:40:15And you can never take anything for granted,
0:40:15 > 0:40:17as Mark has discovered since the auction.
0:40:17 > 0:40:20I haven't been able to get a mortgage.
0:40:20 > 0:40:26But what you can do is get a short-term, 12-month loan...
0:40:26 > 0:40:28- Yes. - ..to sort of cover the rest of it.
0:40:29 > 0:40:33And so I need to see whether or not a mortgage is possible.
0:40:33 > 0:40:37It has a lot to do with the apartments being above the hotel
0:40:37 > 0:40:39and it being quite high up.
0:40:39 > 0:40:43And it has to do with also a lot of these properties being
0:40:43 > 0:40:45held by the bank as repossessions.
0:40:45 > 0:40:48OK, and that will hinder what your end goal is?
0:40:48 > 0:40:53Well, ideally, the end goal is to sort of keep it to rent
0:40:53 > 0:40:54and everything.
0:40:54 > 0:40:57All the one-beds in this block are all the same.
0:40:57 > 0:40:59But I probably should have... Yeah.
0:41:03 > 0:41:05As well as finance problems,
0:41:05 > 0:41:09Mark has had a bill to settle in addition to his £80,000 bid.
0:41:09 > 0:41:12The clue was there at the auction.
0:41:12 > 0:41:16Service charge arrears payable by the buyer.
0:41:16 > 0:41:20This was disclosed in the legal pack which Mark read.
0:41:20 > 0:41:26So he was aware there was £3,500 to pay in service charge arrears.
0:41:27 > 0:41:31That's in addition to the £500 buyer's premium that can arise
0:41:31 > 0:41:35when properties is sold on behalf of a bank or builder society
0:41:35 > 0:41:38who can only agree to pay some of the auctioneer's fee.
0:41:38 > 0:41:40The buyer has to pay the rest.
0:41:43 > 0:41:46Another thing to watch out for at the auction
0:41:46 > 0:41:47is any administration fee.
0:41:47 > 0:41:51And remember, when the hammer falls on your bid, you will need to pay
0:41:51 > 0:41:5510% right away and balance within 28 days.
0:41:55 > 0:41:57So you need to do your homework.
0:42:00 > 0:42:03Read the legal pack, check out the auction house's terms
0:42:03 > 0:42:07and conditions and factor in your legal and surveying costs.
0:42:08 > 0:42:11Property developing isn't all about picking kitchens
0:42:11 > 0:42:14and deciding on what shade of magnolia to have.
0:42:14 > 0:42:17Talking of which, what are Mark's plans?
0:42:18 > 0:42:22Definitely going to give it a new lick of paint.
0:42:22 > 0:42:24The...
0:42:24 > 0:42:28I may look to sort of redoing the flooring.
0:42:28 > 0:42:33The kitchen is not in too much of a bad state, but it's...
0:42:34 > 0:42:36Possibly modernise it.
0:42:36 > 0:42:42Bathroom - everything, it's in good state.
0:42:42 > 0:42:47- If you just tidy up, spruce up, a bit of TLC...- Yeah. A lot of TLC.
0:42:47 > 0:42:51There is a bit of rust on all the windowsills.
0:42:51 > 0:42:55And in regards to your budget now, a little paint, tidy things up...
0:42:55 > 0:43:01- A lick of paint. I mean, I've put aside a few thousand just to...- OK.
0:43:01 > 0:43:04But to be honest with you, I can say this very easily,
0:43:04 > 0:43:06I'm just going to furnish the place.
0:43:06 > 0:43:09- It is a simple turnaround, isn't it, really?- Yeah.
0:43:09 > 0:43:11It is just cleaning, isn't it? From what we can see.
0:43:11 > 0:43:15And I know from before and looking at the rental values,
0:43:15 > 0:43:19they actually do very well cos the location...
0:43:19 > 0:43:21It's a great location.
0:43:21 > 0:43:24- Right in the centre of Manchester-Salford.- Yeah.
0:43:24 > 0:43:27We are above all the shops and restaurants.
0:43:27 > 0:43:30And how long would you like to have all this work done?
0:43:30 > 0:43:34Well, hopefully about four weeks or so. So...
0:43:34 > 0:43:38At the end of the day, it is just a paint job.
0:43:38 > 0:43:42Mark's certainly clued-up about this location and rentals.
0:43:42 > 0:43:46He is aiming to turn this around in four weeks, which seems fair enough.
0:43:46 > 0:43:51Given there is not much to do and despite all the financial hassles,
0:43:51 > 0:43:53Mark knows he has got a good flat here.
0:43:53 > 0:43:56The view's amazing. The sense of space and the light as well.
0:43:56 > 0:43:58- I wish you all the best.- Thank you.
0:43:58 > 0:44:01- I hope it works out for you. - Thank you very much.- Good luck.
0:44:01 > 0:44:03So Mark has had a bit of a nightmare trying to get
0:44:03 > 0:44:05a mortgage on this property.
0:44:05 > 0:44:07So will it become the perfect buy-to-let or will it be
0:44:07 > 0:44:10a financial nightmare for him?
0:44:10 > 0:44:13You can find out how he gets on later on in the programme.
0:44:15 > 0:44:18Well, it is really fascinating to see how people renovate
0:44:18 > 0:44:20their properties.
0:44:20 > 0:44:23- Yeah, we've seen one. How have the other two done?- Let's find out.
0:44:26 > 0:44:29Back now to Dartford, in Kent, where earlier, I met Johnny,
0:44:29 > 0:44:35who together with his uncle Ehsaas bought this mid-terrace for 192,000.
0:44:35 > 0:44:40But he broke the Hammer rule by purchasing before seeing inside.
0:44:40 > 0:44:43When you bought this property and you opened the door
0:44:43 > 0:44:46and had a look inside, what did you then think?
0:44:46 > 0:44:49HE CHUCKLES "We've got some work to do."
0:44:49 > 0:44:50But, yeah, it's...
0:44:50 > 0:44:54If you are going to buy blind, you have got to take the risks.
0:44:54 > 0:44:56Amongst the risks Johnny was taking on
0:44:56 > 0:45:00were the unconventional construction techniques for a loft
0:45:00 > 0:45:03conversion which wouldn't pass building regulations.
0:45:03 > 0:45:05A few skips worth of personal possessions,
0:45:05 > 0:45:09and not to mention a rather putrid stench.
0:45:11 > 0:45:13- And are you looking to rent this out?- We are looking to sell it.
0:45:13 > 0:45:17But again, depending on what the market says. The market will decide.
0:45:17 > 0:45:20Do you think you bought this for a bargain price on auction day
0:45:20 > 0:45:23- because of how it is inside? - Definitely.
0:45:23 > 0:45:25Do you think it would've put a lot of people off coming in?
0:45:25 > 0:45:28Because it is just surface debris and a bit of a smell.
0:45:28 > 0:45:30A lot of people are put off by the smell and stuff like that,
0:45:30 > 0:45:33where you have to look through that. A couple of skips and it is gone.
0:45:33 > 0:45:35You're back to the bare-bones.
0:45:35 > 0:45:37But a lot of people get put off by that.
0:45:37 > 0:45:40Johnny has had a busy time renovating other properties
0:45:40 > 0:45:43and managing the family's portfolio of rentals,
0:45:43 > 0:45:46so we are back six months later.
0:45:46 > 0:45:47The work was spread out,
0:45:47 > 0:45:51but Johnny and the team totalled up two months, bang on schedule.
0:45:51 > 0:45:53Good going.
0:45:53 > 0:45:55# Go, go
0:45:55 > 0:45:57# Go, Johnny, go, go
0:45:57 > 0:46:00# Go, go, Johnny, go, go
0:46:00 > 0:46:03# Go, Johnny, go, go
0:46:03 > 0:46:06# Go, Johnny, go, go. #
0:46:06 > 0:46:09Remember the lounge? Well, it is different now.
0:46:09 > 0:46:12Johnny has put in new windows and, throughout
0:46:12 > 0:46:16the rest of the house, there is new central heating and new wiring.
0:46:23 > 0:46:27But there were some unexpected jobs to tackle upstairs.
0:46:27 > 0:46:29We replaced all the walls.
0:46:29 > 0:46:31Cos when we took the door frames out, they were shaking.
0:46:31 > 0:46:34Obviously now, pretty solid. We can't move it.
0:46:34 > 0:46:37We replaced some insulation inside the walls for noise,
0:46:37 > 0:46:39from room to room.
0:46:39 > 0:46:42A lot of the floors were uneven, so we lifted a lot of the flooring
0:46:42 > 0:46:46areas upstairs and just re-jigged it all basically to...
0:46:46 > 0:46:49Strengthened it up as well because, obviously, we put in new walls.
0:46:49 > 0:46:52But, yeah, very much happy with the walls now. All nice and solid.
0:46:55 > 0:46:59Upstairs not only has new walls, it has got a new bathroom.
0:47:02 > 0:47:05The master bedroom is unrecognizable.
0:47:08 > 0:47:12You could hardly get into the second bedroom with a makeshift stairway
0:47:12 > 0:47:13to the attic room.
0:47:13 > 0:47:16Now it is usable space, as is the small bedroom.
0:47:19 > 0:47:22Proof, if it were needed, that when it comes to refurbishment,
0:47:22 > 0:47:24he is no Johnny-come-lately.
0:47:24 > 0:47:26And there is good news outside.
0:47:26 > 0:47:29# Maybe some day your name will be in lights
0:47:29 > 0:47:31# Saying Johnny B Goode tonight
0:47:31 > 0:47:36# Go, go Go, Johnny, go, go
0:47:36 > 0:47:38# Johnny B Goode. #
0:47:38 > 0:47:42But what has happened to the plans to change the downstairs layout?
0:47:42 > 0:47:43I actually changed my mind.
0:47:43 > 0:47:46I thought we'd just put it back as is because we are not sure
0:47:46 > 0:47:49if we're going to sell the property or rent it.
0:47:49 > 0:47:53If we are going to rent it, it is all nice and small and basic.
0:47:53 > 0:47:55If we are going to sell it, you know,
0:47:55 > 0:47:57they can have that option to adjust there afterwards.
0:47:57 > 0:47:59I thought best to leave it as is.
0:47:59 > 0:48:02And making the attic bedroom inhabitable?
0:48:02 > 0:48:04We decided to take the loft room away,
0:48:04 > 0:48:08as it just wasn't cost viable. OK, we'd add another bedroom,
0:48:08 > 0:48:12but we'd have to get the necessary consent and the cost...
0:48:12 > 0:48:13The value that we paid,
0:48:13 > 0:48:17there wouldn't be enough profit left for us, basically, in the long run.
0:48:17 > 0:48:20Johnny and Uncle Ehsaas have other properties across London.
0:48:20 > 0:48:23With the work that has been done, have the plans changed
0:48:23 > 0:48:25for the Dartford house?
0:48:25 > 0:48:28We will probably sell this one and reinvest somewhere else.
0:48:28 > 0:48:31But at the same time, when we do these projects,
0:48:31 > 0:48:34we have to bear into mind that we might also have to rent for a few
0:48:34 > 0:48:37years or just leave it in the portfolio.
0:48:37 > 0:48:39If we rent it out and the tenant stays here
0:48:39 > 0:48:42and we have no issues, we'll just leave it as is.
0:48:42 > 0:48:46But obviously, it is a bit farther out from our other projects,
0:48:46 > 0:48:48so ideally, we'd like to sell it.
0:48:48 > 0:48:50Does being qualified in skills of the trade help
0:48:50 > 0:48:53when it comes to estimating for jobs like these?
0:48:53 > 0:48:57Unexpectedly removing walls couldn't have been helpful.
0:48:57 > 0:49:01I think, with my background - obviously, electrics and plumbing -
0:49:01 > 0:49:03it makes a big difference.
0:49:03 > 0:49:05We can come in and get it done. I know...
0:49:05 > 0:49:07If someone says to me, "It'll take three days,"
0:49:07 > 0:49:08I know it is going to take two days.
0:49:08 > 0:49:11So I could push them a little bit more to get it done.
0:49:11 > 0:49:13Cos I physically know myself what it involves.
0:49:13 > 0:49:16And if need be, I come down and get involved.
0:49:18 > 0:49:20There has been a significant amount of work done here.
0:49:20 > 0:49:25Has that affected the original £10,000 to £15,000 budget?
0:49:25 > 0:49:28We spent just under 25,000.
0:49:28 > 0:49:32We've done new windows, new central heating system, the wiring.
0:49:32 > 0:49:34Basically, everything new from the beginnings.
0:49:34 > 0:49:38I'd have liked to have come in at 10,000, 15,000, but, you know,
0:49:38 > 0:49:41sometimes you just have to spend a little bit more to gain a bit more.
0:49:41 > 0:49:44Because there are a lot of properties on the market on the in the area,
0:49:44 > 0:49:46so we need to shine a little bit better than them.
0:49:46 > 0:49:50So we put a little bit more money in to hopefully get more money out.
0:49:51 > 0:49:54To find out if Johnny's hopes might come true,
0:49:54 > 0:49:55we invited
0:49:55 > 0:49:57two local estate agents round
0:49:57 > 0:50:00to give us their thoughts on the revamped property.
0:50:00 > 0:50:02I like the property.
0:50:02 > 0:50:05I think what works well is the separate lounge
0:50:05 > 0:50:06and the kitchen diner.
0:50:06 > 0:50:07I think it will appeal
0:50:07 > 0:50:09to a lot of families.
0:50:09 > 0:50:11The standard of finish is fairly good.
0:50:11 > 0:50:14I can see that it has recently been done. Everything is new - carpets,
0:50:14 > 0:50:15kitchen, bathroom.
0:50:16 > 0:50:20Johnny did spend £25,000 refurbishing the house.
0:50:20 > 0:50:22And although he is not planning on renting just yet,
0:50:22 > 0:50:26let's find out what he could expect if he had to.
0:50:26 > 0:50:28On the current rental market, I would expect this property to
0:50:28 > 0:50:32achieve between £1,000 and £1,100 per calendar month.
0:50:32 > 0:50:34For rental, I feel this property would achieve in the region
0:50:34 > 0:50:36between 1,100 and 1,150 per calendar month.
0:50:36 > 0:50:38Taking the top figure,
0:50:38 > 0:50:42that would achieve a yield of just over 6%.
0:50:42 > 0:50:45But Johnny's preferred option is to sell.
0:50:45 > 0:50:47He paid 192,000 at auction,
0:50:47 > 0:50:50plus 25,000 to refurbish.
0:50:50 > 0:50:54So his total spend so far is £217,000.
0:50:54 > 0:50:57So, guys, what is it worth?
0:50:57 > 0:50:59In the current market, I believe it would achieve
0:50:59 > 0:51:02somewhere in the region of £250,000.
0:51:02 > 0:51:03In the current market,
0:51:03 > 0:51:06I would expect this property to achieve around £250,000.
0:51:07 > 0:51:12A unanimous verdict and a potential profit of £33,000,
0:51:12 > 0:51:15minus the usual taxes and expenses.
0:51:15 > 0:51:18But is that the level of profit Johnny was hoping for?
0:51:18 > 0:51:20If we sell for 250, we make a profit.
0:51:20 > 0:51:24It's not the best profit, but it is profit.
0:51:24 > 0:51:27So hopefully, we'll put it on the market for a little while,
0:51:27 > 0:51:30see how the market reacts and go from there.
0:51:30 > 0:51:33Well, that just leaves one question unanswered.
0:51:33 > 0:51:37Did you manage to track down the source of that horrendous smell?
0:51:37 > 0:51:40What we found is a few nappies were actually downstairs,
0:51:40 > 0:51:44under the stairs. So once we got them out, we aired the building a bit.
0:51:44 > 0:51:46Yeah, we got rid of that smell quite quickly.
0:51:46 > 0:51:50Ugh! Don't you just love a story with a NAPPY ending?
0:52:00 > 0:52:04Welcome back to Salford, where for a guide price of £60,000,
0:52:04 > 0:52:07you could buy a one-bed flat...here.
0:52:07 > 0:52:11# Eight miles high. #
0:52:13 > 0:52:15OK, so it is not quite eight miles high,
0:52:15 > 0:52:19but it was all the way up to the 17th floor.
0:52:21 > 0:52:23But with height comes certain advantages.
0:52:23 > 0:52:27The selling point for me is that huge window there,
0:52:27 > 0:52:31which looks over the whole of Salford and Manchester.
0:52:31 > 0:52:34Yes, with some good-sized rooms and its central location,
0:52:34 > 0:52:36it certainly had some great points.
0:52:38 > 0:52:40But it also had some potential problems.
0:52:40 > 0:52:44The lack of parking, £1,600 a year in service charges,
0:52:44 > 0:52:47but most importantly - its mortgageability,
0:52:47 > 0:52:48or rather lack of it -
0:52:48 > 0:52:51because this block was blacklisted by lenders,
0:52:51 > 0:52:55so realistically, only an option to cash buyers.
0:52:55 > 0:53:02Guided at £60,000, a flat here went at £80,000 at auction to Mark.
0:53:02 > 0:53:05But the bad news was he wasn't really a cash buyer.
0:53:07 > 0:53:10I haven't been able to get a mortgage, but what you can do
0:53:10 > 0:53:15is get a short-term, 12-month loan, to sort of cover the rest of it.
0:53:15 > 0:53:18So I need to see whether or not a mortgage is possible.
0:53:19 > 0:53:22# The best things in life are free
0:53:22 > 0:53:25# But you could give them to the birds and bees
0:53:25 > 0:53:26# I want the money
0:53:29 > 0:53:30# That's what I want. #
0:53:31 > 0:53:36Mark had a budget of £2,000 and a timescale of three to four weeks
0:53:36 > 0:53:38to make the flat rentable.
0:53:38 > 0:53:40But apart from the odd bits of maintenance,
0:53:40 > 0:53:42this flat wasn't in bad nick at all,
0:53:42 > 0:53:46which was lucky as he hadn't seen it at all before he bought it.
0:53:48 > 0:53:51But everything paled into insignificance in the face
0:53:51 > 0:53:53of that mortgage question.
0:53:53 > 0:53:55Just under three months later,
0:53:55 > 0:53:58and we have returned to see how Mark's got on.
0:54:09 > 0:54:11With bright sunshine coming from those windows
0:54:11 > 0:54:15and some furniture in, it really is beginning to look like home.
0:54:15 > 0:54:19We've given the whole place a new lick of paint, put laminate flooring
0:54:19 > 0:54:24throughout the living room, changed the lighting and the radiators.
0:54:24 > 0:54:27I was going to redo the kitchen,
0:54:27 > 0:54:30but because of the problems we had with getting the mortgage
0:54:30 > 0:54:35and not knowing the big plan in the future, yeah,
0:54:35 > 0:54:38I've decided just to leave everything as is.
0:54:38 > 0:54:41Uh-oh. That doesn't sound good.
0:54:41 > 0:54:45Getting a mortgage on this property was Mark's big worry.
0:54:45 > 0:54:47Where does he stand at the moment?
0:54:47 > 0:54:51Well, basically, at the start, I took out a short-term loan to cover
0:54:51 > 0:54:57the rest of the debt, which has to be paid off within, well, 12 months.
0:54:57 > 0:55:02With doing that, you can't get a mortgage the first six months
0:55:02 > 0:55:05of buying it outright. So after six months, I'm going
0:55:05 > 0:55:08to try getting a mortgage on this place.
0:55:08 > 0:55:13If not, I may have to sell it, which would be a big shame.
0:55:13 > 0:55:16It would be a shame because Mark has even more at stake now.
0:55:23 > 0:55:25To complicate matters, Mark
0:55:25 > 0:55:28and his girlfriend have accepted an offer on their current home.
0:55:28 > 0:55:32And because he can't get a buy-to-let mortgage on the flat,
0:55:32 > 0:55:34they decided to move in here in the short-term.
0:55:38 > 0:55:41Mark's confident that he can find a specialist loan company
0:55:41 > 0:55:44and that eventually he will be able to rent out the flat.
0:55:45 > 0:55:49With all this in mind, we have asked two local estate agents along.
0:55:51 > 0:55:53Being local, they'll know these properties
0:55:53 > 0:55:55and their problems better than most.
0:55:56 > 0:56:00The layout of the property, I would see owner-occupiers and renters.
0:56:00 > 0:56:01It is a very good size.
0:56:01 > 0:56:06Both main rooms, the bedroom and the living room, very practical shapes.
0:56:06 > 0:56:11And it would suit the majority of homeowners and renters.
0:56:11 > 0:56:15There is no question that these are great apartments, but there is that
0:56:15 > 0:56:20big issue - you can't change their position above a commercial unit.
0:56:20 > 0:56:23The main issue with some lenders is, what happens
0:56:23 > 0:56:26if that commercial premises is no longer in existence?
0:56:26 > 0:56:29Who's going to be responsible for the maintenance of the building?
0:56:29 > 0:56:31It is possible to get buy-to-let mortgages
0:56:31 > 0:56:35on properties like these, but some lenders don't like a high
0:56:35 > 0:56:39concentration of them in one block, so there may be hope for the future.
0:56:41 > 0:56:45Mark spent £80,000 purchasing this place.
0:56:45 > 0:56:49He had service charge arrears to pay of £3,500
0:56:49 > 0:56:52and he spent £2,000 refurbishing it,
0:56:52 > 0:56:57bringing his total investment to £85,500,
0:56:57 > 0:56:59not including expenses like the auction,
0:56:59 > 0:57:03legal fees or taxes like VAT.
0:57:03 > 0:57:07Has this rather rocky road into property development put him
0:57:07 > 0:57:08in the red or black?
0:57:08 > 0:57:12If we were to bring this to market, we'd be looking to achieve
0:57:12 > 0:57:14£80,000 to £85,000.
0:57:14 > 0:57:16If this was on the market today,
0:57:16 > 0:57:21I would suggest a marketing price between 80,000 and 85,000.
0:57:21 > 0:57:24Rental wise, this apartment should perform well.
0:57:24 > 0:57:27I'd anticipate we'd bring it to market at around about
0:57:27 > 0:57:29£650 per calendar month.
0:57:29 > 0:57:32If this property was on the rental market today,
0:57:32 > 0:57:36we would suggest a figure up to £650 per calendar month.
0:57:37 > 0:57:41Well, it's only been three months since Mark bought this property
0:57:41 > 0:57:44and there was not a lot of room to add value in such a short time,
0:57:44 > 0:57:46so it is currently not in profit.
0:57:46 > 0:57:49However, those rental figures would offer potentially just over
0:57:49 > 0:57:52a 9% yield.
0:57:52 > 0:57:56Do your research. Definitely read the packs. View the property.
0:57:56 > 0:58:00But, yeah, check everything before.
0:58:02 > 0:58:04I hope we've given you something to think about
0:58:04 > 0:58:07if you are considering visiting a property auction.
0:58:07 > 0:58:10Yeah, so even if you are not contemplating going to the auction,
0:58:10 > 0:58:13there is another way for you to get in on the auction action.
0:58:13 > 0:58:14Yeah, make sure you join us
0:58:14 > 0:58:16next time for more Homes Under The Hammer.
0:58:16 > 0:58:18- BOTH: See you then.- Bye.