0:00:02 > 0:00:04Each property market around the country tells
0:00:04 > 0:00:05a very different story.
0:00:05 > 0:00:07Yes, and knowing the story in the area you are looking to
0:00:07 > 0:00:09buy in could just give you the edge.
0:00:09 > 0:00:13Yes, our advice, do your homework, get some local knowledge,
0:00:13 > 0:00:16and then head to your local property auction.
0:00:41 > 0:00:44Finding a good deal at the auction, getting everything done on time
0:00:44 > 0:00:47and ending up with a healthy profit. Job done.
0:00:47 > 0:00:50Or maybe not. But that's what you're aiming for.
0:00:50 > 0:00:53And as Dion says, the first step is the auction.
0:00:53 > 0:00:56Yep. Shall we take a look and see what they've bought?
0:00:56 > 0:00:58On today's show, an 18th-century farmhouse
0:00:58 > 0:01:02in Wirksworth, Derbyshire, has room to expand.
0:01:02 > 0:01:06You're going to end up with something really fantastic.
0:01:06 > 0:01:10In Blackhall Colliery, this mid-terrace has damp problems.
0:01:10 > 0:01:13Best expand the windows to fit the frames.
0:01:13 > 0:01:16Huge gap here. You can actually push that out no problem.
0:01:17 > 0:01:21And in Chatham, Kent, this plot has a huge bonus.
0:01:21 > 0:01:26Planning permission for not one but two new properties to be built here.
0:01:27 > 0:01:30All these properties were bought at auction.
0:01:30 > 0:01:31We will find out who got them
0:01:31 > 0:01:35and how much they paid when these homes went under the hammer.
0:01:35 > 0:01:36You bought it, sir.
0:01:40 > 0:01:43This is the market town of Wirksworth in Derbyshire.
0:01:43 > 0:01:47It had quite an industrial past and was once a centre for
0:01:47 > 0:01:50cotton milling, lead mining and stone quarrying.
0:01:52 > 0:01:55So it's got a great industrial heritage,
0:01:55 > 0:02:00but Wirksworth these days is used more by people exploring
0:02:00 > 0:02:03the beautiful Derbyshire Peak District that surrounds it.
0:02:03 > 0:02:06And it's a lovely spot in its own right.
0:02:06 > 0:02:09Just on the edge of town is this.
0:02:09 > 0:02:12It's a two-bedroomed former farmhouse. Fantastic.
0:02:12 > 0:02:14Let's take a look.
0:02:14 > 0:02:17The guide price for this lot, £200,000,
0:02:17 > 0:02:19and, yes, it looks like it's a bit tired.
0:02:19 > 0:02:22But so would you if you'd been around since 1700.
0:02:24 > 0:02:28Well, what have we got? Stairs down to the cellar facing you there.
0:02:28 > 0:02:31I'll explore that possibly a bit later.
0:02:31 > 0:02:34But over this way and you've got your main living area.
0:02:34 > 0:02:37And, whoa, I love this!
0:02:37 > 0:02:41That is a wood-burning stove to beat all wood-burning stoves.
0:02:41 > 0:02:42It looks, by the pipework,
0:02:42 > 0:02:44that that's actually providing central heating.
0:02:44 > 0:02:46And I bet it does a fantastic job as well.
0:02:46 > 0:02:49What a cosy environment that is going to create.
0:02:49 > 0:02:53Little feature windows with the large sort of area here.
0:02:53 > 0:02:55Cos the walls are so thick. Probably just solid stone.
0:02:55 > 0:02:57But these window seats are a really nice feature.
0:02:57 > 0:03:00- You've got a beam. - LAUGHING:- Shame about the light.
0:03:00 > 0:03:03In terms of the layout, it gets a little bit strange.
0:03:03 > 0:03:07It's all fairly OK until here but then, look at that!
0:03:07 > 0:03:10That's a kitchen. And off it, a bathroom.
0:03:10 > 0:03:14So, you know, it doesn't really particularly work like that.
0:03:14 > 0:03:16Sad to see the bathroom downstairs.
0:03:16 > 0:03:21But you know what, it's character and... Yeah, wonderful.
0:03:21 > 0:03:25Imagine this place lovingly restored with a fire roaring
0:03:25 > 0:03:29away in the stove and a family and pets all snuggled up and warm.
0:03:29 > 0:03:32I'm coming over all romantic.
0:03:34 > 0:03:37# In an armchair
0:03:37 > 0:03:40# By the fireside
0:03:40 > 0:03:45# Just big enough for two... #
0:03:45 > 0:03:49What is charming are all the nooks and crannies.
0:03:49 > 0:03:51Next to the kitchen is a big pantry.
0:03:51 > 0:03:53And, if you feel the need for one,
0:03:53 > 0:03:56there is room for a wine cellar in the basement.
0:03:56 > 0:03:58And the charm offensive just continues
0:03:58 > 0:04:00with the second reception room.
0:04:00 > 0:04:03I just love all the period features.
0:04:05 > 0:04:08Upstairs though is a disappointment, only two bedrooms
0:04:08 > 0:04:09and a very small loo.
0:04:09 > 0:04:12Though, let's take a look out the back
0:04:12 > 0:04:14and I'll tell you some good news.
0:04:15 > 0:04:18The good news is that it has got planning permission,
0:04:18 > 0:04:23which basically, primarily, uses this area to create what's here.
0:04:23 > 0:04:27You've got the whole area, double-story extension.
0:04:27 > 0:04:29Downstairs, a large kitchen/breakfast room.
0:04:29 > 0:04:32Then out of the back, to where I'm standing now,
0:04:32 > 0:04:34with even more lean-to conservatory space.
0:04:34 > 0:04:39Upstairs, above that, a master bedroom and another bedroom.
0:04:39 > 0:04:42Ending up with lots more space down here. The good news is,
0:04:42 > 0:04:43it's been passed.
0:04:43 > 0:04:46However, it does stipulate in the planning permission that you
0:04:46 > 0:04:48do have to keep some of the existing walls.
0:04:48 > 0:04:51We are in a conservation area. That's going to be fairly critical.
0:04:51 > 0:04:52It could push up the cost
0:04:52 > 0:04:56but you are going to end up with something really fantastic.
0:04:56 > 0:05:00# And was asked what I do
0:05:02 > 0:05:07# I'd build a dream house
0:05:09 > 0:05:14# Just for two... #
0:05:14 > 0:05:17The farmhouse and its planning permission are very desirable.
0:05:17 > 0:05:20But there's more if you're interested.
0:05:20 > 0:05:23There used to be a paddock attached to the property,
0:05:23 > 0:05:27but that has been parcelled off as a separate lot at auction.
0:05:27 > 0:05:30However, it does have planning permission to build a
0:05:30 > 0:05:33three-bed house on this plot.
0:05:33 > 0:05:37On top of that, there is also a meadow sold as a third lot.
0:05:37 > 0:05:42So maybe you need to buy all three lots to have a true dream property.
0:05:44 > 0:05:47What does the auctioneer who sold it think about this lot
0:05:47 > 0:05:49that was guided at £200,000?
0:05:53 > 0:05:55The farmhouse has got massive potential.
0:05:55 > 0:05:58What you could make it into with the extension that they've got
0:05:58 > 0:06:00planning permission for really, I think,
0:06:00 > 0:06:03takes it to its ultimate, in terms of its potential.
0:06:03 > 0:06:05And it will become, there is no doubt about it,
0:06:05 > 0:06:06it will become a lovely house.
0:06:06 > 0:06:08With just a renovation job,
0:06:08 > 0:06:14the agent thinks the house could be worth £275,000 to £300,000.
0:06:14 > 0:06:17But what could that ultimate house sell for?
0:06:19 > 0:06:23If you develop it in accordance with the approved drawings,
0:06:23 > 0:06:28then you could probably raise its value to £450,000.
0:06:28 > 0:06:34Even without the plans for extending this place that had been passed,
0:06:34 > 0:06:37this is a charming property.
0:06:37 > 0:06:40I have no doubt it got lots and lots of attention
0:06:40 > 0:06:42when it went under the hammer.
0:06:42 > 0:06:44A lovely opportunity, ladies and gentlemen.
0:06:44 > 0:06:46Fairly scarce, I might add.
0:06:46 > 0:06:48Start me on it at 220.
0:06:48 > 0:06:49210.
0:06:49 > 0:06:51200?
0:06:51 > 0:06:55£200,000 will start. At £200,000, opening bid.
0:06:55 > 0:06:58202? 202.
0:06:58 > 0:07:01204. 206 is bid.
0:07:01 > 0:07:02206.
0:07:02 > 0:07:06At 208. 210.
0:07:06 > 0:07:08210.
0:07:08 > 0:07:12Bidding was surprisingly sluggish on this lovely farmhouse.
0:07:12 > 0:07:16Starting below the guide price, the bidding rose in £1,000
0:07:16 > 0:07:19and £2,000 increments.
0:07:19 > 0:07:23And we rejoin the bidding at £225,000.
0:07:23 > 0:07:25225.
0:07:25 > 0:07:27225. 26.
0:07:27 > 0:07:31226. 27.
0:07:31 > 0:07:3228.
0:07:32 > 0:07:34228. 29.
0:07:35 > 0:07:37229.
0:07:37 > 0:07:40229. 230.
0:07:40 > 0:07:44229,000. 230.
0:07:44 > 0:07:47At £229,000 for the first time.
0:07:48 > 0:07:51At 229,000 for the second time.
0:07:51 > 0:07:54Third and last opportunity...
0:07:54 > 0:07:56All finished at £229,000.
0:07:57 > 0:08:00Yours, sir, thank you. £229,000.
0:08:03 > 0:08:05So, at £229,000,
0:08:05 > 0:08:10the successful bidders were a very relieved Mike and Emily.
0:08:10 > 0:08:12But they couldn't take a breather for a moment
0:08:12 > 0:08:16because the next lot up was the paddock with planning permission.
0:08:16 > 0:08:20We joined the bidding on this lot at £140,000.
0:08:20 > 0:08:23140. Are you sure?
0:08:23 > 0:08:25£140,000.
0:08:25 > 0:08:29The hammer goes up. 140,000 once...
0:08:29 > 0:08:30Twice...
0:08:30 > 0:08:32Third and... 141.
0:08:32 > 0:08:35142. 43.
0:08:35 > 0:08:37143.
0:08:37 > 0:08:39144.
0:08:39 > 0:08:40144.
0:08:41 > 0:08:44144,000. 145.
0:08:45 > 0:08:47145. And 146.
0:08:49 > 0:08:52£145,000.
0:08:52 > 0:08:54146.
0:08:54 > 0:08:55Definite?
0:08:57 > 0:09:00You've done that before. £146,000. Once...
0:09:00 > 0:09:02Twice...
0:09:02 > 0:09:03Third time.
0:09:03 > 0:09:05Sold at 146. Same buyer.
0:09:05 > 0:09:08And so they made it a double.
0:09:08 > 0:09:11But could they make it a hat-trick?
0:09:11 > 0:09:15The meadow was in the final lot in this section
0:09:15 > 0:09:19and we joined the bidding on this item at £44,000.
0:09:20 > 0:09:2244,000 on the back wall.
0:09:22 > 0:09:2545. 46.
0:09:25 > 0:09:2746. 47.
0:09:27 > 0:09:2948. 48.
0:09:29 > 0:09:3049.
0:09:32 > 0:09:37£48,000 then. We are selling for the first time at 48.
0:09:38 > 0:09:40For the second time at 48.
0:09:40 > 0:09:43Third and last opportunity. All done?
0:09:43 > 0:09:44At £48,000...
0:09:46 > 0:09:48Sold on the back at 48.
0:09:48 > 0:09:49112. Thank you.
0:09:50 > 0:09:53And so they miss out on the third lot.
0:09:53 > 0:09:58But their total £375,000 spend has given them the house
0:09:58 > 0:10:01and the paddock at the back.
0:10:01 > 0:10:04# Now don't be sad
0:10:04 > 0:10:07# Don't be sad cos...
0:10:07 > 0:10:10# Two out of three ain't bad... #
0:10:10 > 0:10:13- Mike, Emily, great to meet you both. - And you.- Likewise.
0:10:13 > 0:10:15- Congratulations.- Thank you.
0:10:15 > 0:10:18So, tell me why you wanted to buy this place.
0:10:18 > 0:10:20We just fell in love with the property.
0:10:20 > 0:10:23It's just full of character. It's in a beautiful location.
0:10:23 > 0:10:26What really excited us was the possibility of extending it.
0:10:26 > 0:10:28We wanted the land that went with it.
0:10:28 > 0:10:31So, with that in mind, you went to the auction thinking what?
0:10:31 > 0:10:34We had a plan. We thought we would go to the auction
0:10:34 > 0:10:36and just get some experience of the auction.
0:10:36 > 0:10:38Yeah, right(!)
0:10:38 > 0:10:41- THEY LAUGH - That was never going to work!
0:10:41 > 0:10:44We had set ourselves a limit.
0:10:44 > 0:10:47If the house went for a certain value on the first hammer, then
0:10:47 > 0:10:50we would obviously start to participate in the actual auction.
0:10:50 > 0:10:53- Right.- So as we started to see the bids slowing up,
0:10:53 > 0:10:56that's when we decided to start bidding for the house.
0:10:56 > 0:10:58Thankfully, we secured the house.
0:10:58 > 0:11:02That's good. That's the first tick. Then what happened?
0:11:02 > 0:11:05We decided, OK, we've got the house. We are now committed.
0:11:05 > 0:11:07So we then started bidding on the building plot.
0:11:07 > 0:11:10Thankfully we secured the building plot as well.
0:11:10 > 0:11:12- That was really stressful.- Yes, yes.
0:11:12 > 0:11:14So that was part two. But it still wasn't over!
0:11:14 > 0:11:17- Absolutely.- No, it was the worst bit, the last bit.- Yeah.
0:11:17 > 0:11:20Obviously, you are a two thirds of the way through the experience.
0:11:20 > 0:11:25Feeling confident that we could secure the land. So off we started.
0:11:25 > 0:11:28- Mm.- It was myself against another gentleman.
0:11:28 > 0:11:31- Unfortunately, I just felt that it was going too high.- It was crazy.
0:11:31 > 0:11:33- It was becoming crazy. - Crazy money for the land.
0:11:33 > 0:11:36Let's get back to some positives. You got the house.
0:11:36 > 0:11:39And you've got the bit of land. What are you going to do with it?
0:11:39 > 0:11:43Big plans. Double the size of the extension.
0:11:43 > 0:11:46Hopefully open up the cottage at the top, the two bedrooms.
0:11:46 > 0:11:48Double the size of the existing extension?
0:11:48 > 0:11:50That is there at the moment.
0:11:50 > 0:11:52Yeah, you mean you're going to basically stick with
0:11:52 > 0:11:54- the plans that are in place? - BOTH:- Yeah.- Basically, yes.
0:11:54 > 0:11:58And we hope to open up the bedrooms and make them a mezzanine floor.
0:11:58 > 0:12:00Then the plans at the moment,
0:12:00 > 0:12:03it doesn't...it blocks up the cellar but we are not going to do that.
0:12:03 > 0:12:05We've had people, you know,
0:12:05 > 0:12:09give us quotes what it would cost to open up the cellar.
0:12:09 > 0:12:11And hopefully have that as a little room.
0:12:11 > 0:12:14Make it a feature with lighting and keep it warm.
0:12:14 > 0:12:17Could be my bolt hole. That's the plan.
0:12:17 > 0:12:21If I know anything about kids, the couple's eight-year-old,
0:12:21 > 0:12:27Harvey, and 11-year-old, Eleanor, will be commandeering that space.
0:12:27 > 0:12:31I'm excited for this family. This is going to be a great home.
0:12:31 > 0:12:34What the plan, I wonder, for the plot they bought?
0:12:35 > 0:12:36We've got mixed plans.
0:12:36 > 0:12:39We're not sure yet exactly what it's going to be.
0:12:39 > 0:12:42- Probably 18 months' time we might have it as a holiday let.- Mm.
0:12:42 > 0:12:44Within the grounds. We don't know yet.
0:12:44 > 0:12:47We've not finalised what we're going to do. So...
0:12:47 > 0:12:49Mike is a company director
0:12:49 > 0:12:52and he will be leaving the project managing to Emily.
0:12:52 > 0:12:56And she'll be combining that with her role as a full-time mum.
0:12:56 > 0:13:00This is a big project and this house, rather than the land,
0:13:00 > 0:13:02will be the priority.
0:13:02 > 0:13:05But it isn't going to be straightforward.
0:13:05 > 0:13:08We've got to jump through hoops first with planning.
0:13:08 > 0:13:09To get the spec of the windows right.
0:13:09 > 0:13:11They won't let us start
0:13:11 > 0:13:13until they've seen a draw-up of the windows.
0:13:13 > 0:13:16Unfortunately, we didn't realise we had to go through all these
0:13:16 > 0:13:19rigmaroles really, didn't we, to get there.
0:13:19 > 0:13:22Cos they'll probably want to check out the stone you're using,
0:13:22 > 0:13:25the roofing materials, all that kind of stuff.
0:13:25 > 0:13:26An example of the windows as well.
0:13:26 > 0:13:29So we've got to get on with all of that now and then,
0:13:29 > 0:13:33as soon as all of that's been approved, we hope six months.
0:13:33 > 0:13:37- Mm. Yeah.- So... Do you have any idea of the budget?
0:13:37 > 0:13:40Yes, we've got a rough idea. We're budgeting for about £100,000.
0:13:40 > 0:13:42- With about 20% contingency.- Right.
0:13:42 > 0:13:46Split between doing up this place and building the extension?
0:13:46 > 0:13:47- BOTH:- Yeah.
0:13:47 > 0:13:50But leaving the building plot and all that kind of stuff...
0:13:50 > 0:13:51At this moment in time, yes.
0:13:51 > 0:13:54- That will be the next phase, 18 months' time.- 18 months' time, yeah.
0:13:54 > 0:13:57- Listen, congratulations to you both. Good luck.- Thank you, Martin.
0:13:57 > 0:13:59We can't wait to see how it all turns out.
0:13:59 > 0:14:01- Thank you.- Thank you.
0:14:02 > 0:14:05So, Mike and Emily, not surprisingly,
0:14:05 > 0:14:08falling in love with this place.
0:14:08 > 0:14:11And going to turn it into their dream home.
0:14:11 > 0:14:13Kind of sticking to the plans, a few tweaks here and there,
0:14:13 > 0:14:17but I just can't wait to see how it all turns out.
0:14:17 > 0:14:19You can find out later in the show.
0:14:25 > 0:14:28Situated on the north coast of County Durham, between Hartlepool
0:14:28 > 0:14:32and Horden, is the small village of Blackhall Colliery.
0:14:32 > 0:14:35Blackhall beach is famous for appearing in the climactic
0:14:35 > 0:14:41scenes of the classic 1971 film Get Carter, starring Michael Caine.
0:14:41 > 0:14:45The film shows the beach covered in black coal spoilings dumped here
0:14:45 > 0:14:48by the then-operational mine conveyor system.
0:14:49 > 0:14:54A massive £10 million has been spent removing all traces
0:14:54 > 0:14:59of the coal industry. And now, well, might be a bit too cold for a swim,
0:14:59 > 0:15:01but what a lovely beach.
0:15:01 > 0:15:05Not far from the now pristine Blackhall beach is the property
0:15:05 > 0:15:07I'm here to see.
0:15:07 > 0:15:11It's a two-bed mid-terrace house with a guide price of £15,000-£20,000,
0:15:11 > 0:15:13which is incredibly low.
0:15:13 > 0:15:17I'm going to find out what you get for that money. Let's have a look.
0:15:17 > 0:15:20I know you think this must be the back of a house with the bins
0:15:20 > 0:15:23and the rubbish, but no, this is the front.
0:15:23 > 0:15:24And this is the front door.
0:15:24 > 0:15:26The very sticky front door.
0:15:26 > 0:15:29That was hard work getting in the building.
0:15:29 > 0:15:32That would need changing straightaway.
0:15:32 > 0:15:34And the windows as well. I had a look at the windows.
0:15:34 > 0:15:36They look very weather-worn.
0:15:36 > 0:15:42So...not a good start. But in here - kitchen - nice, big open space.
0:15:42 > 0:15:43It is dated.
0:15:43 > 0:15:46But you can change that. Just put a new one in.
0:15:46 > 0:15:49Area here for dining, table and chairs maybe.
0:15:49 > 0:15:52And you've got central heating, which is a good start as well.
0:15:52 > 0:15:55Your boiler just there. Not too bad so far.
0:15:55 > 0:15:56Into the lounge.
0:15:56 > 0:15:58Nice-sized lounge. Decent-sized lounge.
0:15:58 > 0:16:02Nice, big window going out there to the back of the property.
0:16:02 > 0:16:06Bit of an off-centre fireplace, which is...hmm. It's a new one on me.
0:16:06 > 0:16:10Apart from that, I'm quite happy so far.
0:16:10 > 0:16:12Can't see any signs of damp as yet.
0:16:12 > 0:16:14What am I going to find upstairs? Let's have a look.
0:16:16 > 0:16:19If I'm going to nit-pick, it is
0:16:19 > 0:16:22a little strange walking straight into the kitchen.
0:16:22 > 0:16:25But, apart from that, it's looking pretty solid.
0:16:27 > 0:16:31Upstairs to the bedrooms, which look OK to me.
0:16:31 > 0:16:33Big one there, smaller one here.
0:16:33 > 0:16:35Bathroom just there which does need some tidying up.
0:16:35 > 0:16:37It looks dated again, like the kitchen is.
0:16:37 > 0:16:39But you can turn that around, no problem.
0:16:39 > 0:16:42This is the smaller one of the two bedrooms.
0:16:42 > 0:16:45I'm not sure now. Bit confused. Is it the front or is it the back?
0:16:45 > 0:16:47But the windows do need changing.
0:16:47 > 0:16:49OK, into the big one here.
0:16:49 > 0:16:51Which is a nice-sized double bedroom.
0:16:51 > 0:16:53You'd get a double bed in here no problem.
0:16:53 > 0:16:56I'd get these carpets changed, they look incredibly worn.
0:16:56 > 0:16:59And I think I spoke too soon when I said there was no damp.
0:16:59 > 0:17:01There's signs of damp just there.
0:17:01 > 0:17:04Over to this window which has got gaps everywhere.
0:17:04 > 0:17:07There's a huge gap here. I can just push that out no problem.
0:17:07 > 0:17:09And you can feel that cold air coming in.
0:17:09 > 0:17:12And there's signs, over the years, of water coming in.
0:17:12 > 0:17:15It's actually still wet to touch as well.
0:17:15 > 0:17:17So get those changed.
0:17:17 > 0:17:19# Keep, keep, keep me warm
0:17:19 > 0:17:22# Keep, keep me warm... #
0:17:22 > 0:17:25Yes, this house needs to be made wind and watertight.
0:17:25 > 0:17:28So it might be worth looking outside to see
0:17:28 > 0:17:31if there are any clues regarding that damp.
0:17:31 > 0:17:33OK, what about the back of the property?
0:17:33 > 0:17:36Looks a bit of a mess, but... Oh, nearly!
0:17:36 > 0:17:41This is unsafe decking. It's actually bowing under my feet here.
0:17:41 > 0:17:43So that would definitely have to go.
0:17:43 > 0:17:45There's no end on this back garden at all.
0:17:45 > 0:17:47There's no fencing at all.
0:17:47 > 0:17:49Let's investigate further.
0:17:49 > 0:17:52You can see that these windows are in a terrible condition.
0:17:52 > 0:17:53That's just down to the weather.
0:17:53 > 0:17:57I can see an aerial on that chimney there and it's pulling out bricks.
0:17:57 > 0:18:00The aerial is pulling out bricks from that chimney.
0:18:00 > 0:18:02This just needs a massive overhaul.
0:18:02 > 0:18:05But if you turned it round, it could be very nice.
0:18:05 > 0:18:09It's not going to be easy and it's not going to be cheap.
0:18:09 > 0:18:13But there is that guide price of 15-20 grand to consider.
0:18:13 > 0:18:17Does a local estate agent think this is a golden opportunity or
0:18:17 > 0:18:20a whole heap of trouble?
0:18:20 > 0:18:23Apart from some general external repairs, such as roof
0:18:23 > 0:18:27and pointing at the external walls, it internally needs a full upgrade.
0:18:27 > 0:18:30New central heating system. It looks like it's past its sell-by date.
0:18:30 > 0:18:32New kitchen.
0:18:32 > 0:18:34Bathroom, full decoration.
0:18:34 > 0:18:37In this local area at the moment, sales are very, very slow.
0:18:37 > 0:18:40Values have been struggling for a while.
0:18:40 > 0:18:43I wouldn't normally recommend selling cos you're not
0:18:43 > 0:18:47going to make a quick profit. Rental-wise, definitely rentals.
0:18:47 > 0:18:48They're doing pretty well.
0:18:48 > 0:18:50Particularly with these garden properties.
0:18:50 > 0:18:55As I thought, a long list of jobs for any potential buyer.
0:18:55 > 0:19:00But what kind of returns could you expect once renovation is done?
0:19:00 > 0:19:02Once the property has been fully refurbished,
0:19:02 > 0:19:04I would expect a sale value of £48,000.
0:19:04 > 0:19:06With a rental figure of approximately
0:19:06 > 0:19:08£430 per calendar month.
0:19:08 > 0:19:11To get this property back up to a decent standard, it would
0:19:11 > 0:19:13cost around about £9,000-£10,000.
0:19:13 > 0:19:17OK, so if you got the property for the top end of the guide price,
0:19:17 > 0:19:19at £20,000,
0:19:19 > 0:19:21and spent £10,000 on refurbishing it,
0:19:21 > 0:19:25and were able to get £430 per calendar month,
0:19:25 > 0:19:29that would mean a yield of around an amazing 17%.
0:19:29 > 0:19:30Now that is impressive.
0:19:34 > 0:19:37Yes, there are a few issues you would have to sort out.
0:19:37 > 0:19:40Windows and doors definitely need changing.
0:19:40 > 0:19:43That pointing out the back, not to mention the damp.
0:19:43 > 0:19:46But, all in all, this is a good size house
0:19:46 > 0:19:48and if you get it for anywhere near that guide price
0:19:48 > 0:19:53of £15,000-£20,000, I think you've got yourself a potential bargain.
0:19:53 > 0:19:55Let's see who thought the same when it went to auction.
0:20:00 > 0:20:01Blackhall Colliery,
0:20:01 > 0:20:05Hartlepool, 15,000 to 20,000 at guide.
0:20:05 > 0:20:06Seems cheap to me.
0:20:06 > 0:20:10Two-bedroom, mid-terrace home requiring a skim of refurbishment.
0:20:10 > 0:20:12Where are we going to start?
0:20:12 > 0:20:1415. 15 here.
0:20:14 > 0:20:15At 15, I'm bid.
0:20:15 > 0:20:18At £15,000, and once.
0:20:18 > 0:20:19At 15, I'm bid.
0:20:19 > 0:20:22At £15,000, we're done? 16 here.
0:20:22 > 0:20:2517. 18. 19. You're out.
0:20:25 > 0:20:31Here at... It's 18. At 18, I'm bid now. At £18,000, we're done?
0:20:31 > 0:20:3419, new bidder. 20. 20, I'm bid.
0:20:34 > 0:20:37One. Thinking about it. Here at 20.
0:20:37 > 0:20:38At 20 in the room, then.
0:20:38 > 0:20:42At £20,000, we're through. Against you two.
0:20:42 > 0:20:45I'll take it. 20.5. 21.
0:20:45 > 0:20:47Here at £20,500.
0:20:47 > 0:20:49At £20,500, then.
0:20:49 > 0:20:51First time.
0:20:51 > 0:20:53Second time. Are we done?
0:20:53 > 0:20:57I'm selling this to the gentleman behind you at £20,500
0:20:57 > 0:20:58unless you stop me.
0:20:58 > 0:21:02For the third and final time, giving you plenty of time. Selling...
0:21:02 > 0:21:04- GAVEL DROPS - Well done, sir.
0:21:08 > 0:21:11The successful bid of £20,500 belonged to Glyn.
0:21:11 > 0:21:15Glyn runs a business for investors that buys properties,
0:21:15 > 0:21:18renovates them and then manages them as rentals.
0:21:18 > 0:21:21This property is the latest in a long line.
0:21:21 > 0:21:26# You can leave it to me I'll be in your corner... #
0:21:27 > 0:21:29Sharp-eyed viewers might recognise Glyn,
0:21:29 > 0:21:32as he has been on the show before in 2013.
0:21:34 > 0:21:36- Hi, Glyn, nice to meet you. - Hi, and you.
0:21:36 > 0:21:39- Tell me about the auction, first and foremost. How was it?- It was good.
0:21:39 > 0:21:42Busy night. Yeah, a lot of activity there.
0:21:42 > 0:21:44Because you bought it for somebody else.
0:21:44 > 0:21:47- Yeah, I bought it for an investor. - Tell me, how does that work?
0:21:47 > 0:21:50What's the ins and outs of that when you are buying for somebody else?
0:21:50 > 0:21:54I go and look at properties, give them a quotation for what
0:21:54 > 0:21:57I feel it needs spending on it to bring it up to a rental standard.
0:21:57 > 0:22:00And quite often, they don't even come and see them themselves.
0:22:00 > 0:22:03So then, with our own building company,
0:22:03 > 0:22:06we then do the refurbishment, find tenants and manage it for them
0:22:06 > 0:22:08and do maintenance afterwards as well.
0:22:08 > 0:22:10Now you've got this one. This is for an investor as well.
0:22:10 > 0:22:12You'll turn it around, rent it.
0:22:12 > 0:22:13What are you going to do it?
0:22:13 > 0:22:17Put new windows, new front and back door.
0:22:17 > 0:22:21Fascias and guttering will be sorted. Fences will be done.
0:22:21 > 0:22:25The garden will be made over. Pointing on this wall out here.
0:22:25 > 0:22:29Kitchen will get a make over, as well as the bathroom.
0:22:29 > 0:22:32We'll strip and plaster the stairs, landing.
0:22:32 > 0:22:35New carpets. And decorate through.
0:22:35 > 0:22:37Glyn, I've seen some damp upstairs, in one of the bedrooms.
0:22:37 > 0:22:40Can you tell me what you think is causing that?
0:22:40 > 0:22:43Might be flashing around the chimney or maybe there is a tile
0:22:43 > 0:22:45missing or something. But that will be, you know,
0:22:45 > 0:22:47looked at and put right.
0:22:47 > 0:22:51- What budget has the investor given you to turn it all around?- 8,000.
0:22:51 > 0:22:53- And you think that will be enough? - Yeah.
0:22:53 > 0:22:55Probably the majority will be on the windows and the doors.
0:22:55 > 0:22:58And how long are you expecting that to take you?
0:22:58 > 0:23:00Probably about three weeks.
0:23:00 > 0:23:04To get the whole property done from start to finish?
0:23:04 > 0:23:07Three weeks?! Now that is impressive.
0:23:07 > 0:23:11Glyn's own team of builders will be starting on the house right away.
0:23:11 > 0:23:15With the investors making returns like 17%,
0:23:15 > 0:23:17getting the property refurbished as soon as possible is
0:23:17 > 0:23:19the name of the game here.
0:23:19 > 0:23:22He's been in the building game since he was an apprentice,
0:23:22 > 0:23:25so clearly knows the building and property trades.
0:23:25 > 0:23:28And it is all about getting this house ready for rental.
0:23:28 > 0:23:31So, Glyn, tell us about the exterior of the house.
0:23:31 > 0:23:34What are you going to do with the back garden, front garden?
0:23:34 > 0:23:36Yeah, no, we'll clear this.
0:23:36 > 0:23:39The decking needs some, you know, removing from there.
0:23:39 > 0:23:40We'll put a fence out the back.
0:23:40 > 0:23:43Obviously, we talked about pointing. So that will all get done.
0:23:43 > 0:23:47- Glyn, good luck. I hope it works out for you.- Thank you very much.
0:23:47 > 0:23:51So Glyn doesn't seem fazed by anything this property has
0:23:51 > 0:23:55to throw at him. He's given himself a very short timescale of only
0:23:55 > 0:23:58three weeks and a small budget. Will he turn it round?
0:23:58 > 0:24:01You can find out later on in the programme.
0:24:01 > 0:24:06Coming up, this plot in Chatham has permission but much work ahead.
0:24:06 > 0:24:09You need to remain in close contact with the local authority
0:24:09 > 0:24:12throughout the build.
0:24:12 > 0:24:17And there is more advice coming your way from Glyn in Blackhall Colliery.
0:24:17 > 0:24:19Don't just jump in, do your research,
0:24:19 > 0:24:21know what you are getting into.
0:24:26 > 0:24:28Back now to Wirksworth, in Derbyshire,
0:24:28 > 0:24:33a delightful market town that we first visited back in 2012.
0:24:33 > 0:24:38It was home to this promising two-bedroom former farmhouse
0:24:38 > 0:24:43that had a guide price of £200,000 plus, and fortuitously,
0:24:43 > 0:24:45planning permission already in place.
0:24:45 > 0:24:48You've got a whole area...
0:24:48 > 0:24:50It's a double-storey extension. Downstairs,
0:24:50 > 0:24:52a large kitchen/breakfast room.
0:24:52 > 0:24:54And out the back, to where I am standing now,
0:24:54 > 0:24:56with even more sort of lean-to conservatory space.
0:24:56 > 0:25:01Upstairs, above that, a master bedroom and another bedroom.
0:25:01 > 0:25:04So ending up with lots more space down here.
0:25:04 > 0:25:07Yes, I was a big fan of this house and its potential, but it would
0:25:07 > 0:25:12require some deep pockets and some level heads to be realised.
0:25:12 > 0:25:15Enter husband and wife Mike and Emily,
0:25:15 > 0:25:20who bought the property on auction day for £229,000.
0:25:20 > 0:25:24They fell in love with the property and were eager to create a
0:25:24 > 0:25:28family home for themselves and their two children, Eleanor and Harvey.
0:25:28 > 0:25:31Are you going to stick basically with the plans that are in place?
0:25:31 > 0:25:33Yes, basically.
0:25:33 > 0:25:37And we hope to open up the bedrooms and make them a mezzanine floor.
0:25:37 > 0:25:41So this property was destined to become a family home.
0:25:41 > 0:25:43But it was by no means a straightforward job.
0:25:43 > 0:25:48And even though the couple had a healthy budget of £100,000
0:25:48 > 0:25:53and a timescale of 18 months, they had taken on a big project.
0:25:53 > 0:25:56It is almost 2.5 years since we last visited
0:25:56 > 0:26:00and, clearly, from the outside, there has been big changes.
0:26:00 > 0:26:02So will it be the cat's whiskers inside?
0:26:15 > 0:26:18My goodness, unrecognisable.
0:26:18 > 0:26:21What a stunning transformation.
0:26:21 > 0:26:23In fact, I think
0:26:23 > 0:26:26we'll need a little help to figure out what is what.
0:26:27 > 0:26:29So this was the original kitchen.
0:26:29 > 0:26:32Around about here was the original back door.
0:26:32 > 0:26:36You can see where the stonework starts to change from the dress
0:26:36 > 0:26:37brickwork here.
0:26:37 > 0:26:39This area here was the external window
0:26:39 > 0:26:41that led through to the pantry.
0:26:41 > 0:26:44And you can see where we have kept in the original stonework,
0:26:44 > 0:26:47now in-filled with a somewhat empty wine rack.
0:26:47 > 0:26:51And as we step down, this was the step down into the back yard,
0:26:51 > 0:26:54with the shed to the right-hand side
0:26:54 > 0:26:58and then the wood store to the left of that.
0:26:58 > 0:27:01So all of the bathroom and the kitchen area were off to our left,
0:27:01 > 0:27:03we have completely demolished that
0:27:03 > 0:27:07and then built this new extension, which is now the kitchen/diner area.
0:27:26 > 0:27:28This stunning new living room leads into
0:27:28 > 0:27:32a guest-room-cum-games-room, complete with foldout bed.
0:27:38 > 0:27:41And a beautiful en suite which can also be
0:27:41 > 0:27:44accessed from the conservatory.
0:27:46 > 0:27:49And the high-spec finish just continues.
0:27:49 > 0:27:52Originally, this house had just two bedrooms.
0:27:52 > 0:27:57There are now one, two, three,
0:27:57 > 0:28:00four double bedrooms.
0:28:00 > 0:28:03Three of which have their own en suite facilities,
0:28:03 > 0:28:05all on this upper floor.
0:28:06 > 0:28:08The fourth and master bedrooms have
0:28:08 > 0:28:11Jack-and-Jill access to the bathroom.
0:28:11 > 0:28:12And at the moment, Emily
0:28:12 > 0:28:16and Mike use the fourth bedroom as a dressing room.
0:28:16 > 0:28:21So with that downstairs guest room, this house now has five bedrooms,
0:28:21 > 0:28:24four bathrooms and a very flexible layout.
0:28:24 > 0:28:27Not only is the finish fabulous, Emily
0:28:27 > 0:28:32and Mike have succeeded in creating a family-friendly home for Harvey
0:28:32 > 0:28:36and Eleanor, though just not with the plans that came with the house.
0:28:36 > 0:28:40So despite purchasing the property with full planning permission,
0:28:40 > 0:28:43when we actually came to look at the property
0:28:43 > 0:28:45and review the plans in more detail,
0:28:45 > 0:28:49we actually discovered that we were unable to access the new extension
0:28:49 > 0:28:52from the original property, that the roof height was incorrect.
0:28:52 > 0:28:55So we reviewed this with a new architect
0:28:55 > 0:28:57and we discovered that we had to go back to planning.
0:28:57 > 0:29:00Unfortunately, what we thought was going to be a minor amendment
0:29:00 > 0:29:02and literally take a matter of weeks,
0:29:02 > 0:29:05we had to go and get full planning permission over again,
0:29:05 > 0:29:08so that took us a further three to four months to get full planning.
0:29:08 > 0:29:11So we used the opportunity to take advantage of going for full
0:29:11 > 0:29:13planning to make some further changes,
0:29:13 > 0:29:16which included changes to the conservatory,
0:29:16 > 0:29:20changes to the front garden and also being able to utilise the cellar.
0:29:20 > 0:29:23The original plans actually had the cellar filled in with concrete
0:29:23 > 0:29:25and a downstairs toilet placed over it.
0:29:25 > 0:29:28And as you can see, it is one of the features that we've wished to retain.
0:29:28 > 0:29:31And again, we've been able to do that.
0:29:31 > 0:29:34Unfortunately, we encountered difficulties with our original
0:29:34 > 0:29:37contractor, which meant that we had to part our ways.
0:29:37 > 0:29:40But from a very dark cloud, there was a very good silver lining.
0:29:40 > 0:29:43And that meant that we met some very good tradespeople who were
0:29:43 > 0:29:46very sympathetic to the build and did an excellent job for us.
0:29:46 > 0:29:49I am really delighted with the craftsmanship and the quality
0:29:49 > 0:29:52of the workmanship which we were able to achieve with the new builders.
0:29:52 > 0:29:55The delays over the plans meant that they were not able to begin
0:29:55 > 0:29:57work for ten months.
0:29:57 > 0:30:01Unfortunately, some of the original works carried out were not
0:30:01 > 0:30:04passed by building control and had to be redone.
0:30:04 > 0:30:07In the end, the work did take a year,
0:30:07 > 0:30:10the only remaining work being the back garden,
0:30:10 > 0:30:12and there are big plans for that.
0:30:12 > 0:30:13At the moment, it looks a bit of a mess,
0:30:13 > 0:30:17but we are planning to have a lovely vegetable garden, a pond.
0:30:17 > 0:30:18We'd like some chickens and goats.
0:30:18 > 0:30:22A modern patio, actually, on that side. Some fruit trees.
0:30:22 > 0:30:23Definitely vegetables.
0:30:23 > 0:30:25That's what we are going to be doing next for this spring.
0:30:25 > 0:30:28Sounds lovely, but with the timescale out the window,
0:30:28 > 0:30:31how is their £100,000 budget looking?
0:30:31 > 0:30:33Today, I would estimate that we have spent
0:30:33 > 0:30:36somewhere in the region of £210,000.
0:30:36 > 0:30:38Left to go, we have still got the landscaping
0:30:38 > 0:30:39and to finish off the driveway,
0:30:39 > 0:30:43so I'd say probably another £5,000 to £10,000 just to
0:30:43 > 0:30:44finish off the property.
0:30:44 > 0:30:49Mike and Emily did also spend 146 grand buying an adjacent lot
0:30:49 > 0:30:52with land and a barn to enable them
0:30:52 > 0:30:55to complete their dream of having animals
0:30:55 > 0:30:58and converting the barn to holiday homes.
0:30:58 > 0:30:59But that is the next stage,
0:30:59 > 0:31:02so we'll concentrate on the house at the moment.
0:31:02 > 0:31:06As it stands, they've more than doubled their renovation budget
0:31:06 > 0:31:10and have spent £439,000 on their farmhouse.
0:31:10 > 0:31:11But what a house!
0:31:12 > 0:31:16Emily acted as project manager and the couple did a fair bit
0:31:16 > 0:31:18of work themselves, so a real labour
0:31:18 > 0:31:20of love to create their dream home. I'm guessing
0:31:20 > 0:31:22this is not going to come
0:31:22 > 0:31:26to the property market any time soon, however, we do have to ask.
0:31:26 > 0:31:30So what do two local agents make of this lovely house?
0:31:30 > 0:31:34The work that has been carried out is absolutely amazing. It is beautiful.
0:31:34 > 0:31:36Really special finish.
0:31:36 > 0:31:38The standard of work that has been achieved here, I think,
0:31:38 > 0:31:40is absolutely top-notch.
0:31:40 > 0:31:44I think they have put a huge amount of thought and effort into it,
0:31:44 > 0:31:47and they clearly haven't skimped on money.
0:31:47 > 0:31:50As I suspected, very impressed agents.
0:31:50 > 0:31:53So, let's hear their valuations.
0:31:54 > 0:31:57If this went on the market today,
0:31:57 > 0:32:00I would expect it to achieve in the region of £600,000.
0:32:00 > 0:32:01So if this came onto the market,
0:32:01 > 0:32:08I would be recommending that it came on between £600,000 and £625,000.
0:32:08 > 0:32:11We didn't actually do it for profit, we wanted to make a lovely
0:32:11 > 0:32:15family home, so we're pleased that we have made some profit out of this.
0:32:15 > 0:32:18Well, they have certainly achieved what they set out to do.
0:32:18 > 0:32:23Plus that top valuation of £625,000 would mean a whopping
0:32:23 > 0:32:26pre-tax profit of £186,000.
0:32:26 > 0:32:29But it really is just academic because Mike, Emily
0:32:29 > 0:32:32and their kids couldn't be happier in their new home.
0:32:34 > 0:32:36We are really pleased with the property,
0:32:36 > 0:32:39absolutely delighted with what we have achieved.
0:32:39 > 0:32:41I don't think we ever envisaged that we would be able to achieve
0:32:41 > 0:32:43this standard from the original property.
0:32:43 > 0:32:46So, yeah, absolutely delighted.
0:32:51 > 0:32:55I'm here in Chatham, Kent, one of the five Medway towns.
0:32:57 > 0:33:01And it is a green and leafy area with great schools
0:33:01 > 0:33:05and even has its own football club - Chatham Town FC.
0:33:05 > 0:33:07Now, it is not far to the auction lot I am here to see.
0:33:07 > 0:33:11Let's hope it doesn't fall foul of my expectations.
0:33:12 > 0:33:17Well, this family-friendly spot is off to a good start so far.
0:33:17 > 0:33:21Along this attractive tree-lined road is the lot I am here to see.
0:33:21 > 0:33:26Now, it went auction with a guide price of £140,000 to £150,000.
0:33:26 > 0:33:29Now, it is hidden behind this gate here.
0:33:29 > 0:33:31What am I going to find behind?
0:33:31 > 0:33:32I do love a surprise!
0:33:34 > 0:33:39So, behind the gate, you have... Dah-dah-dah!
0:33:39 > 0:33:40A pretty big plot of land.
0:33:40 > 0:33:45Now, that guide price might sound expensive for this,
0:33:45 > 0:33:47but not when I tell you it already has planning
0:33:47 > 0:33:53permission for not one but two new properties to be built here.
0:33:53 > 0:33:56That's two semis, each with three bedrooms and two bathrooms.
0:34:01 > 0:34:04And I think these houses have been well-designed.
0:34:04 > 0:34:07From the front, they look like a single detached dwelling.
0:34:07 > 0:34:10They are a little different from one another, which makes them unique and
0:34:10 > 0:34:15well thought-out rather than just being carbon copies of each other.
0:34:15 > 0:34:19But a potential sale price of £150,000 to give up a little
0:34:19 > 0:34:22bit of your garden, well, it makes you think, doesn't it?
0:34:22 > 0:34:26# Give a little bit Give a little bit... #
0:34:26 > 0:34:28Now, originally, the planning permission
0:34:28 > 0:34:30for these houses was turned down.
0:34:30 > 0:34:34And that was due to their confined back gardens.
0:34:34 > 0:34:37Now, each garden now will only be seven to nine metres in depth
0:34:37 > 0:34:39and five to six metres in width,
0:34:39 > 0:34:42which won't be for everyone because they will be small.
0:34:42 > 0:34:44Unfortunately, that is often the price you'll pay
0:34:44 > 0:34:48when you buy a new-build house. And if you like period features
0:34:48 > 0:34:49and a sense of history, well,
0:34:49 > 0:34:52these properties will not be for you.
0:34:52 > 0:34:56However, they do appeal to a lot of people as they are more
0:34:56 > 0:35:00energy-efficient, they are chain free and if you buy early enough
0:35:00 > 0:35:05on in the build, well, you might be able to have a say into the design.
0:35:05 > 0:35:08Really, it is a matter of personal preference.
0:35:08 > 0:35:11And I think it could be argued that new-build houses, well,
0:35:11 > 0:35:12they are more practical.
0:35:13 > 0:35:19So small gardens on an old garden site, that is slightly ironic.
0:35:19 > 0:35:21And there is another small problem that might slow
0:35:21 > 0:35:25progress down here in that plans may have been passed
0:35:25 > 0:35:28but building regulations haven't yet been obtained.
0:35:28 > 0:35:31And of course, there will be the challenges of getting all
0:35:31 > 0:35:34the services in - gas, electricity, water, drains...
0:35:34 > 0:35:37So there is still an enormous number of things to sort out here.
0:35:39 > 0:35:41As with any planning application,
0:35:41 > 0:35:43there are conditions attached to this development.
0:35:43 > 0:35:46And I think it is worth me running through these
0:35:46 > 0:35:49so you know what to expect if you take on a similar project.
0:35:49 > 0:35:53Firstly, the development must be started within three
0:35:53 > 0:35:55years from the date of the decision.
0:35:55 > 0:35:57Secondly, no development can take place
0:35:57 > 0:36:01until samples of the proposed external materials have been
0:36:01 > 0:36:05shown, such as bricks and maybe even roof tiles.
0:36:05 > 0:36:09And also, you have to consider both hard and soft landscape works.
0:36:09 > 0:36:13They have to be submitted and approved by the local authority too.
0:36:13 > 0:36:15These are fairly standard regulations,
0:36:15 > 0:36:19but it is a worthwhile reminder that even once you have planning
0:36:19 > 0:36:22permission, you need to remain in close contact with the local
0:36:22 > 0:36:24authority throughout the build.
0:36:24 > 0:36:26So what does the local estate agent
0:36:26 > 0:36:30think about the plans and, in particular, the small gardens?
0:36:33 > 0:36:34With new builds, you tend to find
0:36:34 > 0:36:37that the gardens are smaller.
0:36:37 > 0:36:40It tends not to be a problem when you are looking to resell or
0:36:40 > 0:36:42indeed rent the properties out.
0:36:42 > 0:36:46You do have access to local parks as well in the area,
0:36:46 > 0:36:48so it doesn't deter from sale.
0:36:48 > 0:36:52Ah, but most importantly, how do the figures stack up?
0:36:52 > 0:36:55Once the properties have been built,
0:36:55 > 0:37:00I would put a value of between £220,000 and £240,000.
0:37:00 > 0:37:02And that is times two, of course,
0:37:02 > 0:37:06so that could be a value of up to £480,000.
0:37:06 > 0:37:08And what about the rental market?
0:37:08 > 0:37:11In the current market, rental is still very popular.
0:37:11 > 0:37:15I would say each property could rent anywhere between £950 to £1,000
0:37:15 > 0:37:16per calendar month.
0:37:22 > 0:37:25This might only look like a little patch of garden land at the moment,
0:37:25 > 0:37:29but that planning permission makes it oh-so much more than that.
0:37:29 > 0:37:32These semis have been well-designed, and once built,
0:37:32 > 0:37:34there could be some serious money to be made here.
0:37:34 > 0:37:37Let's see who agreed when we went to auction.
0:37:39 > 0:37:40Lot 34.
0:37:40 > 0:37:43It is land with planning permission for a pair of three-bedroom
0:37:43 > 0:37:44semidetached houses.
0:37:44 > 0:37:46140, might I say.
0:37:46 > 0:37:50Can be 130 then. At 130. Bid. I'm on the way. 130.
0:37:50 > 0:37:52And five. 135. 135.
0:37:52 > 0:37:54140 now.
0:37:54 > 0:37:57140. 140, I'm obliged. 145, it's against you.
0:37:57 > 0:37:59Take two if you wish.
0:37:59 > 0:38:02142. Now five.
0:38:02 > 0:38:05147. 150, can I say?
0:38:05 > 0:38:07148.
0:38:07 > 0:38:09148. 149.
0:38:09 > 0:38:11150. And one.
0:38:11 > 0:38:13So competition for the land was hotting up,
0:38:13 > 0:38:18and we rejoin the auction with bidding now at £190,000.
0:38:18 > 0:38:22190. And one. And two. And three.
0:38:22 > 0:38:26And four. And five. And six. And seven.
0:38:26 > 0:38:30Seven. £196,000, I've got.
0:38:30 > 0:38:32197,000, I am looking for.
0:38:32 > 0:38:34Are we all done at 196, then? For the first time.
0:38:34 > 0:38:40196 for the second time. Third and final time, £196,000...
0:38:40 > 0:38:42You bought it, sir.
0:38:42 > 0:38:44And so after a bit of a tussle,
0:38:44 > 0:38:48the successful bid of 196,000 was made by...
0:38:49 > 0:38:50Hang on a minute!
0:38:50 > 0:38:54# I've seen that face before. #
0:38:54 > 0:38:58That is builder Ray who has got 30 years' experience in the industry
0:38:58 > 0:39:01and who I met back in 2012.
0:39:01 > 0:39:03He and his sister, Louise, were doing a bit of property
0:39:03 > 0:39:05developing as a hobby.
0:39:05 > 0:39:08From the renovation of a house to a plot of land and a new build,
0:39:08 > 0:39:10wow, that is quite a jump.
0:39:10 > 0:39:12I need to find out more from Ray.
0:39:12 > 0:39:17# I've seen that face before. #
0:39:17 > 0:39:21- Ray, we meet again. Congratulations on this plot.- Thank you.
0:39:21 > 0:39:25The last time I saw you, it was a little wooden house in Dunton Green.
0:39:25 > 0:39:27- Did you end up selling it? - We did, yeah.
0:39:27 > 0:39:30We put it on the market one day and, two days later,
0:39:30 > 0:39:34we had six or seven viewings on it, and six offers out of that.
0:39:34 > 0:39:37- Wow!- 327,500. We were well pleased with that.
0:39:37 > 0:39:39- So things are going well for you. - Yes.
0:39:39 > 0:39:42- And here you are back for your next project.- Yeah, a new build.
0:39:42 > 0:39:46- So is this project number three now? - This is, yes.- Incredible.
0:39:46 > 0:39:48The last time I saw you, you were with your sister.
0:39:48 > 0:39:51Yep, sister is away on holiday at the moment. So...
0:39:51 > 0:39:53She's still involved, though, same as my partner.
0:39:53 > 0:39:55But they just can't make it today.
0:39:55 > 0:39:58Ray's partner, Julia, will be mucking in when
0:39:58 > 0:40:00she's not working at her HR job.
0:40:00 > 0:40:02And since this is Ray's first new build,
0:40:02 > 0:40:06support from Louise and Julia might well be crucial.
0:40:07 > 0:40:09So what was it that appealed to you about this plot?
0:40:09 > 0:40:12There wasn't many plots available on the auction day,
0:40:12 > 0:40:14so this was within our budget to build.
0:40:14 > 0:40:17We think we can make a good profit on it. So we went for it.
0:40:17 > 0:40:20Did it appeal to you that this site came with planning permission?
0:40:20 > 0:40:22It did, yeah. It saves a lot of hassle.
0:40:22 > 0:40:25But not realising it didn't come with building regs - a bit of a shock.
0:40:25 > 0:40:27But there we go.
0:40:27 > 0:40:30It's all in process now, so a week or two, we'll be starting.
0:40:30 > 0:40:33And how much extra cost is that going to be?
0:40:33 > 0:40:35£1,000 or so. Over £1,000.
0:40:35 > 0:40:38So it is not too bad, but...
0:40:38 > 0:40:40Also, we've still got to get the building warranties,
0:40:40 > 0:40:44which we did not allow for. Another couple of thousand pound there.
0:40:44 > 0:40:46- But we'll still be OK. - It's a learning curve for you.
0:40:46 > 0:40:47Yeah, it is, definitely.
0:40:47 > 0:40:50A new learning curve, and I'm looking forward to it.
0:40:50 > 0:40:52And so Ray is already learning the hard way,
0:40:52 > 0:40:56and that is that new builds are different from renovations.
0:40:56 > 0:40:58There are certainly more hoops to jump through.
0:40:58 > 0:41:00And so despite 30 years building experience,
0:41:00 > 0:41:04he is just a rookie when it comes to building a house from scratch.
0:41:05 > 0:41:08# First time
0:41:08 > 0:41:10# First time... #
0:41:11 > 0:41:14How do you feel yourself about starting out as a house builder?
0:41:14 > 0:41:18I mean, this is a really different deal for you.
0:41:18 > 0:41:21Nervous and daunting, but I think I'll be OK.
0:41:21 > 0:41:24I mean, it's... I put it down to being like
0:41:24 > 0:41:25I build a big double extension.
0:41:25 > 0:41:28It's nothing different, really, but you're not joined onto nothing,
0:41:28 > 0:41:30you are just doing a completely new...new build.
0:41:30 > 0:41:32Are you going to be laying the bricks?
0:41:32 > 0:41:35I can lay bricks, but I'd probably take three or four times longer
0:41:35 > 0:41:38than a bricklayer, so I shall get two bricklayers in.
0:41:38 > 0:41:40And probably three or four weeks, they'd have it all up.
0:41:40 > 0:41:43So cost-wise, it's not going to cost that much.
0:41:43 > 0:41:45Then your expertise is all the other bits and pieces?
0:41:45 > 0:41:47Yeah, I'm going to do all the groundwork.
0:41:47 > 0:41:48Roof, everything else.
0:41:48 > 0:41:51I'll get my brother-in-law to do the electrics.
0:41:51 > 0:41:54We get someone in to do the gas and everything else will be me.
0:41:54 > 0:41:56So what is your budget for this build here?
0:41:56 > 0:42:00I'm going to say 120,000 to do both houses.
0:42:00 > 0:42:02It's going to be tight, but I think we can do it.
0:42:02 > 0:42:04Is that absolutely it?
0:42:04 > 0:42:07Kitchens, bathrooms, groundworks, everything, driveways,
0:42:07 > 0:42:09gardens, landscapes.
0:42:09 > 0:42:10That's the lot. That is it.
0:42:10 > 0:42:13- 120,000, 60 grand a house?- Yes.
0:42:13 > 0:42:14Timescale?
0:42:14 > 0:42:20I'm going to say ten months, but my partner insists I say a year, so...
0:42:20 > 0:42:21You say a year for the telly.
0:42:21 > 0:42:24- Yeah.- But ten months in your head. - I'd like to do it in ten months.
0:42:24 > 0:42:27- So we won't tell you off.- No, I'd like to do it in 12 months, but...
0:42:27 > 0:42:29I see no problem with that, I think we can do it.
0:42:29 > 0:42:31I know you've been really working hard at this,
0:42:31 > 0:42:34- this is what you really want to do. - God, yeah.- You love it.
0:42:34 > 0:42:35Are you taking a wage yet?
0:42:35 > 0:42:37Are you actually earning any money out of it?
0:42:37 > 0:42:39How is it working financially for you?
0:42:39 > 0:42:40My lovely partner supports me,
0:42:40 > 0:42:44but I take a minimum wage just to cover household bills at home.
0:42:44 > 0:42:46And then at the end of it, we just split the profit.
0:42:46 > 0:42:48- Are you excited?- I am excited.
0:42:48 > 0:42:51I can't wait, but we can't start yet till we get the project writs.
0:42:51 > 0:42:53I love that you've got more energy and a new-found love for building.
0:42:53 > 0:42:55- Yeah.- It's great to see you again,
0:42:55 > 0:42:57and I'm sure we're going to meet again in the future.
0:42:57 > 0:43:00- I think so, yeah.- Congratulations, Ray, well done.- Thank you very much.
0:43:02 > 0:43:05Well, Ray might have 30 years of experience in the building industry,
0:43:05 > 0:43:10but he's never built a whole house from scratch before, let alone two.
0:43:10 > 0:43:13So I'm sure there'll be lessons for him to learn along the way,
0:43:13 > 0:43:17but I hope this does prove a profitable venture for him
0:43:17 > 0:43:18and not double the trouble.
0:43:18 > 0:43:21You can join me later on in the programme to find out
0:43:21 > 0:43:22how Ray gets on.
0:43:26 > 0:43:28So we've seen what one of our buyers has achieved.
0:43:28 > 0:43:31- What about the other two? - Yes, did everything go to plan?
0:43:31 > 0:43:33I think we should find out.
0:43:37 > 0:43:40Back to the Northeast and the village of Blackhall Colliery,
0:43:40 > 0:43:42where I looked at this two-bed mid-terrace.
0:43:44 > 0:43:47It had an odd back-to-front sort of feel about it
0:43:47 > 0:43:48and wasn't in a great state,
0:43:48 > 0:43:52but that was reflected in the guide price of 15 to 20 grand.
0:43:53 > 0:43:54There was definitely work to do,
0:43:54 > 0:43:56and the work started right at the front door.
0:44:02 > 0:44:04That was hard work, getting in the building.
0:44:04 > 0:44:05There's signs of damp just there.
0:44:05 > 0:44:07Over to this window which has got gaps.
0:44:07 > 0:44:13It's actually still wet to touch as well, so get those changed.
0:44:13 > 0:44:16And on top of that, there was also dodgy decking.
0:44:16 > 0:44:18Let's investigate further.
0:44:18 > 0:44:20Battered brickwork and the guttering was a goner.
0:44:22 > 0:44:23Step up to the plate, Glyn.
0:44:24 > 0:44:28He didn't pay £20,500 for this for himself,
0:44:28 > 0:44:29it was bought for an investor.
0:44:30 > 0:44:34Glyn runs a company that sources rental properties for investors,
0:44:34 > 0:44:35buys them, renovates them
0:44:35 > 0:44:38and then maintains them once they are rented out.
0:44:39 > 0:44:41Nothing about this property fazed Glyn.
0:44:41 > 0:44:44He was confident that he and his team would be able to overhaul it
0:44:44 > 0:44:49to a budget of just £8,000 in a timescale of three weeks.
0:44:54 > 0:44:57Three months later, we return to see if Glyn has made good
0:44:57 > 0:44:58on his investor's money.
0:45:11 > 0:45:15With tenants clearly already in, the downstairs has been freshened up
0:45:15 > 0:45:20with new flooring, a lick of paint, and in the kitchen, new units.
0:45:21 > 0:45:24And I'm also glad to see that those dodgy windows have been replaced.
0:45:28 > 0:45:30Upstairs, and everything has been freshened up
0:45:30 > 0:45:32with new paint and carpets.
0:45:33 > 0:45:37Plus, in the master bedroom, that damp has been dealt with.
0:45:41 > 0:45:43We had a damp patch on the ceiling in here.
0:45:43 > 0:45:46When we looked on the roof, there was two cracked tiles,
0:45:46 > 0:45:47and they were easily changed.
0:45:47 > 0:45:51It's all watertight up there now, the ceiling's been repaired.
0:45:51 > 0:45:54In this room also, the window was particularly bad.
0:45:54 > 0:45:58So the new replacement windows made a huge difference to this room.
0:45:59 > 0:46:04The back garden has also undergone a makeover and is far more appealing.
0:46:04 > 0:46:06Plus, you can see the newly rendered brickwork.
0:46:09 > 0:46:13Although the chimney doesn't look pretty, Glyn has made it safe.
0:46:15 > 0:46:18A clever idea here is that they've pushed up the fence line
0:46:18 > 0:46:22in the back garden in order to create some off-street parking,
0:46:22 > 0:46:23which is a real bonus.
0:46:24 > 0:46:28The key with properties of this kind, especially when buying for investors,
0:46:28 > 0:46:29is to keep the costs down
0:46:29 > 0:46:34so you can achieve the maximum yield whilst also creating a family home.
0:46:35 > 0:46:38And Glyn certainly had quite a list of jobs to do
0:46:38 > 0:46:39to get to this stage.
0:46:40 > 0:46:45We've done new windows, replaced the doors, we've done fencing.
0:46:45 > 0:46:49Inside the property, we've put new kitchen unit doors on,
0:46:49 > 0:46:54stripped wallpaper upstairs, plastered some of the walls,
0:46:54 > 0:46:58tiled around the bath, added a mixer shower to that,
0:46:58 > 0:47:00decorated right through, carpeted right through.
0:47:00 > 0:47:05And the brickwork to the rear of the property has all been repointed.
0:47:05 > 0:47:09And the majority of the work has been carried out by my employees.
0:47:09 > 0:47:11I have a building company.
0:47:11 > 0:47:14We do sub contracting, plumber and electrician.
0:47:14 > 0:47:18And on this one, we had a company fit the windows.
0:47:18 > 0:47:21So, for Glyn, this one has been pretty straightforward.
0:47:21 > 0:47:23But how did he find tenants so quickly?
0:47:24 > 0:47:27For finding the tenants, the day we picked the keys up
0:47:27 > 0:47:28from the estate agency,
0:47:28 > 0:47:31on the way back from the estate agent, I received a call -
0:47:31 > 0:47:34somebody looking for a property in the area.
0:47:34 > 0:47:37So I came straight here, arranged to meet with them.
0:47:37 > 0:47:38They liked the house.
0:47:38 > 0:47:41When I talked through what we'd be doing with it
0:47:41 > 0:47:42with the refurbishment,
0:47:42 > 0:47:45and they moved in the day that it was completed.
0:47:46 > 0:47:50So Glyn has been able to fulfil one promise to the investor by finding
0:47:50 > 0:47:54a tenant, but did he stick to the budget and timescales that he quoted?
0:47:55 > 0:47:58I said that the budget would be £8,000.
0:47:58 > 0:48:00We've come within that £8,000.
0:48:00 > 0:48:03The only thing that we'll have probably gone over
0:48:03 > 0:48:05is the boiler needed a repair.
0:48:05 > 0:48:08But that's going to be somewhere in the region of £170.
0:48:08 > 0:48:11I said it would take about three weeks,
0:48:11 > 0:48:13and we did it around that time.
0:48:13 > 0:48:16There was a holiday period in between us doing
0:48:16 > 0:48:19the refurbishment, but the actual time on site would have
0:48:19 > 0:48:21been around the three weeks.
0:48:21 > 0:48:25So, with all targets met, time for the all-important question.
0:48:25 > 0:48:27Is the investor happy?
0:48:27 > 0:48:29Yeah, investor is very happy,
0:48:29 > 0:48:32and that it was tenanted so quickly as well.
0:48:34 > 0:48:37The house was always meant as a rental vehicle,
0:48:37 > 0:48:39but let's take a look at the values.
0:48:39 > 0:48:45It cost £20,500 at auction and has had £8,000 spent on it.
0:48:45 > 0:48:48So a total of 28.5 grand.
0:48:49 > 0:48:51What do two local estate agents think about it?
0:48:53 > 0:48:55This is my second time to visit this property.
0:48:55 > 0:48:58It's been upgraded to a decent standard.
0:48:58 > 0:49:00The standard of the finish of the property is ideal.
0:49:00 > 0:49:03It's appropriate for the area and it should be good for a tenant.
0:49:03 > 0:49:05The exterior of the property is much improved.
0:49:05 > 0:49:08The gardens were a real mess and they've been tidied up,
0:49:08 > 0:49:10so they're nice and useful now for a family.
0:49:11 > 0:49:15So, with the estate agents impressed, let's see the evaluations.
0:49:15 > 0:49:17If I was to put this property on the market for sale,
0:49:17 > 0:49:19I would expect to achieve around about £48,000.
0:49:19 > 0:49:21If this property was put back on the market,
0:49:21 > 0:49:25I would expect it to achieve £54,950.
0:49:25 > 0:49:28I was expecting it to come in around £50,000,
0:49:28 > 0:49:31so, yeah, we're both OK with that.
0:49:33 > 0:49:35Glyn's ballpark figure of £50,000
0:49:35 > 0:49:39would mean a pre-tax profit of £21,500.
0:49:39 > 0:49:42But this house was bought for its rental yields,
0:49:42 > 0:49:45and Glyn already has a tenant in place.
0:49:45 > 0:49:48How would evaluations of the agent stack up
0:49:48 > 0:49:50with his current rental figure?
0:49:50 > 0:49:52If we do advertise this property for rental,
0:49:52 > 0:49:55I would suggest it should be on for £400 per calendar month.
0:49:55 > 0:49:57If the property was put back on the market for rental,
0:49:57 > 0:50:01I would expect it to achieve £425 per calendar month.
0:50:01 > 0:50:03We're actually getting more rent than that -
0:50:03 > 0:50:07we're renting this out at £475 month.
0:50:07 > 0:50:09But, you know, it's obviously giving a quick return.
0:50:11 > 0:50:12It certainly is.
0:50:12 > 0:50:17Yes, that rental figure of £475 per calendar month means a huge
0:50:17 > 0:50:20yield of 20% for his investor.
0:50:22 > 0:50:26So, has the super-experienced property developer got any advice
0:50:26 > 0:50:28for the novices amongst us?
0:50:28 > 0:50:31Advice I would give to people looking at this -
0:50:31 > 0:50:33don't just jump in, do your research,
0:50:33 > 0:50:34know what you're getting into
0:50:34 > 0:50:39and make sure that you don't spend more than the end value, erm,
0:50:39 > 0:50:41and that it'll be in an area where it's all rent OK.
0:50:46 > 0:50:49It was in the Kent town of Chatham where we first came across
0:50:49 > 0:50:51a rather tranquil spot.
0:50:53 > 0:50:56The current residents already came supplied with their houses,
0:50:56 > 0:51:00but for human habitation, some building work would need to be done.
0:51:02 > 0:51:05Planning permission was already granted for two semidetached
0:51:05 > 0:51:09three-bedroom houses, making it a rather sought-after lot.
0:51:09 > 0:51:13And the man who emerged triumphant from the auction was Ray,
0:51:13 > 0:51:16who, together with his partner, Julie, and his sister, Louise,
0:51:16 > 0:51:20purchased the land for £196,000.
0:51:20 > 0:51:22And although he'd been in the building trade
0:51:22 > 0:51:26for over 30 years, this was to be his first new build.
0:51:31 > 0:51:35So how do you feel yourself about starting out as a house builder?
0:51:35 > 0:51:38I mean, this is a really different deal for you.
0:51:38 > 0:51:41Nervous and daunting, but I think I'll be OK.
0:51:41 > 0:51:44I mean, it's... I put it down to being
0:51:44 > 0:51:45like I build a big double extension.
0:51:45 > 0:51:48It's nothing different, really, but you're not joined onto nothing,
0:51:48 > 0:51:51you're just doing a completely new...new build, so...
0:51:52 > 0:51:55And if you were to choose a spot for new build number one,
0:51:55 > 0:51:57then this could be it.
0:51:57 > 0:51:59It was relatively flat with good road access...
0:51:59 > 0:52:02# Need a place, need a place
0:52:02 > 0:52:05# Need a place to start
0:52:05 > 0:52:06# Ohh
0:52:06 > 0:52:08# So build a home
0:52:08 > 0:52:11# Put pictures on the wall
0:52:11 > 0:52:15# Choose a colour for the door And let me in... #
0:52:15 > 0:52:20And with a budget of £120,000 to build both properties,
0:52:20 > 0:52:23Ray was hoping he could complete his premier new build
0:52:23 > 0:52:25in ten months to a year.
0:52:26 > 0:52:29And now, just under a year later,
0:52:29 > 0:52:32we're back with Ray to check on his progress.
0:52:43 > 0:52:44Wow.
0:52:44 > 0:52:47Both semidetached houses are up and looking good.
0:52:47 > 0:52:50Not bad for starters, Ray, not bad at all.
0:52:52 > 0:52:57# For the first time Ooh-ooh ooh-ooh ooh-ooh
0:52:57 > 0:53:00# Oh, for the first time... #
0:53:00 > 0:53:03And the house on plot one hasn't got far to go,
0:53:03 > 0:53:04while the house on plot two,
0:53:04 > 0:53:07with its entrance facing the opposite way,
0:53:07 > 0:53:09looks like it still has further to go.
0:53:11 > 0:53:13The layout on plot one ground floor is,
0:53:13 > 0:53:15as you come into the hallway here,
0:53:15 > 0:53:18on the right we have, like, a downstairs cloakroom.
0:53:18 > 0:53:21Next to the downstairs cloakroom...
0:53:21 > 0:53:25is a utility cupboard with all the electric services in.
0:53:25 > 0:53:28On the left, opposite that, is a kitchen, where the kitchen is
0:53:28 > 0:53:31starting to go in now. And we're just waiting for the granite people
0:53:31 > 0:53:32to come and do a template there.
0:53:32 > 0:53:36Opposite the kitchen, is the stairs up to the first floor.
0:53:36 > 0:53:40And then you come in through the hallway into the lounge area,
0:53:40 > 0:53:42out two patio doors, onto a patio in the garden.
0:53:42 > 0:53:45The layout works really well in this house.
0:53:45 > 0:53:47It's not a massive house, but I think it'd be a nice family home.
0:53:50 > 0:53:53Upstairs, there are three bedrooms - one reasonable double,
0:53:53 > 0:53:57a smaller single and then the master bedroom complete with en suite.
0:54:01 > 0:54:05And the house will be finished off with a good-sized family bathroom.
0:54:05 > 0:54:08What about the second semidetached house?
0:54:08 > 0:54:11Plot two has got the bedroom over the garage, which makes it
0:54:11 > 0:54:14slightly bigger than plot one, but it's still three bedrooms,
0:54:14 > 0:54:15main bathroom and en suite.
0:54:15 > 0:54:18Well, it will be when it's finished.
0:54:18 > 0:54:21This second semi needs a bit more work
0:54:21 > 0:54:23and a bit more imagination to see the layout.
0:54:23 > 0:54:25But the structure is taking shape,
0:54:25 > 0:54:29and that's a year since we were last here.
0:54:29 > 0:54:31Ray has actually only been working on this
0:54:31 > 0:54:34house for around eight to nine months.
0:54:34 > 0:54:37With initial delays getting the building regulations sorted
0:54:37 > 0:54:40and then getting the utilities in - especially the drains -
0:54:40 > 0:54:43it's been a protracted process.
0:54:43 > 0:54:46But, at last, he can see the finishing post.
0:54:48 > 0:54:53Plot one, we're 97% there.
0:54:53 > 0:54:58Plot two is probably 50%, so two or three weeks on plot one
0:54:58 > 0:55:02and then probably a month or so on plot two.
0:55:02 > 0:55:05And certainly what we can see so far looks pretty promising.
0:55:05 > 0:55:08And I really like the look of these properties.
0:55:08 > 0:55:12Ray clearly has worked very hard to get to this point.
0:55:14 > 0:55:16My main role is just overseeing everything.
0:55:16 > 0:55:21The only outside contractors I've had is the bricklayer and the roofers.
0:55:21 > 0:55:24I've done everything else on my own, really, and just now we've got
0:55:24 > 0:55:27a local tradesmen in just to help us with the finishing touches.
0:55:27 > 0:55:30But has all his input meant he was able to stick to
0:55:30 > 0:55:32that £120,000 budget?
0:55:34 > 0:55:37Original budget, yeah, we're probably at 120,000 now, actually.
0:55:37 > 0:55:39We've probably got 30,000 left to spend,
0:55:39 > 0:55:41so it'll probably be about 150 in the end.
0:55:41 > 0:55:44The reason we've spent more on the budget is mainly utilities,
0:55:44 > 0:55:49drainage, building regulations, so it has just been added on.
0:55:49 > 0:55:52Yes, those utilities came to cost.
0:55:52 > 0:55:55The drains alone cost £8,000 to get sorted.
0:55:55 > 0:55:58And the rest cost in the region of 10,000.
0:55:58 > 0:56:03And with his projected total spend of £150,000 on top
0:56:03 > 0:56:08of that £396,000 purchase price, Ray and his partners will have
0:56:08 > 0:56:13sunk £346,000 into their two semidetached houses.
0:56:13 > 0:56:16So, has all the effort and money been worth it?
0:56:16 > 0:56:20What do two local estate agents think of what Ray has built so far?
0:56:20 > 0:56:22Having looked around these two properties, I think
0:56:22 > 0:56:24they're very smart.
0:56:24 > 0:56:26The quality of the build is first class.
0:56:26 > 0:56:29I think the properties are a very good standard.
0:56:29 > 0:56:30A lot of thought has gone into them.
0:56:30 > 0:56:32I think the layout is really good.
0:56:32 > 0:56:33It's good that they are unusual.
0:56:33 > 0:56:35Plot one is a bit different from plot two,
0:56:35 > 0:56:36and plot two is facing the rear.
0:56:36 > 0:56:40If the properties are completed to the same standard
0:56:40 > 0:56:44as I've seen today, they are going to be excellent.
0:56:44 > 0:56:46Well, pretty positive responses and, in fact,
0:56:46 > 0:56:50Ray has had a number of enquiries from potential buyers.
0:56:50 > 0:56:54But will all that result in some financial reward for a project
0:56:54 > 0:57:00which, when completed, will have cost £346,000?
0:57:00 > 0:57:03Once these properties are finished, I would anticipate them
0:57:03 > 0:57:07selling for around about £250,000 each.
0:57:07 > 0:57:09If the properties were brought to the marketplace today,
0:57:09 > 0:57:13I would envisage an asking price of £250,000.
0:57:13 > 0:57:15I think that's probably what about we was looking at.
0:57:15 > 0:57:18250, I think. If we clear 250, we'll be happy.
0:57:19 > 0:57:24£250,000 apiece will make this a half-a-million-pound project,
0:57:24 > 0:57:28which could see a pre-tax profit of around 154,000,
0:57:28 > 0:57:32less expenses, of course, which certainly seems worthwhile.
0:57:32 > 0:57:35And though Ray has no plans to let the houses out, they do have
0:57:35 > 0:57:41a rental potential of between £900 to £950 per month,
0:57:41 > 0:57:45which would equate to an annual rental yield of around 6%.
0:57:45 > 0:57:46But most importantly,
0:57:46 > 0:57:50will Ray's first new build be the first of many?
0:57:53 > 0:57:55Definitely, yeah. It's been a learning curve
0:57:55 > 0:57:56but I'd definitely like to do one again,
0:57:56 > 0:57:59maybe just one house next time, not two.
0:57:59 > 0:58:02It's been an experience and I'd love to repeat it.
0:58:04 > 0:58:07Many different people buy all kinds of properties
0:58:07 > 0:58:09for lots of different reasons, and there's more every day.
0:58:09 > 0:58:11So get in on the auction action.
0:58:11 > 0:58:12Yeah, here on Homes Under The Hammer.
0:58:12 > 0:58:14- We'll see you next time. - Goodbye.- Goodbye.- Bye.