0:00:02 > 0:00:04Welcome to the programme. In some parts of the country,
0:00:04 > 0:00:07property bargains can be hard to find, but are out there.
0:00:07 > 0:00:09Yes, so you're just going to have to track them down
0:00:09 > 0:00:13- if you want to make the most of your money.- So how do you do that?
0:00:13 > 0:00:15You know what I'm going to say - visit your local property auction.
0:00:41 > 0:00:44People go to auction with all kinds of budgets,
0:00:44 > 0:00:47- but they're all looking for a deal. - Did today's buyers find one?
0:00:47 > 0:00:50Well, let's take a look what we're featuring on today's show.
0:00:51 > 0:00:53In Cochrane Park, Newcastle,
0:00:53 > 0:00:56this three-bed semi is bright, light and airy.
0:00:56 > 0:00:58It seems...perfect?
0:00:59 > 0:01:00Spoke too soon!
0:01:01 > 0:01:06In Leyton, London, my favourite phrase applies - original features!
0:01:06 > 0:01:09I'm excited straight away, because look what you've got!
0:01:09 > 0:01:10Some shutters!
0:01:12 > 0:01:14And in Gainsborough, Lincolnshire,
0:01:14 > 0:01:17a low guide price has got me mouthing off about moneymaking.
0:01:17 > 0:01:21You are on the right lines to making a decent amount of profit.
0:01:23 > 0:01:25All these properties were bought at auction.
0:01:25 > 0:01:28We'll find out who got them and how much they paid
0:01:28 > 0:01:31- when these homes went under the hammer.- Sold!
0:01:33 > 0:01:37MUSIC: De Do Do Do, De Da Da Da by The Police
0:01:37 > 0:01:42Cochrane Park is a popular suburb in Newcastle and is home to this
0:01:42 > 0:01:47impressive 1940s Art Deco building, which is now luxury flats.
0:01:47 > 0:01:49That must've been quite a conversion.
0:01:49 > 0:01:53I think we should tackle something on a slightly smaller scale.
0:01:53 > 0:01:57Well, you can tell straight away that this really is
0:01:57 > 0:02:02a lovely residential area. So, property prices to match?
0:02:02 > 0:02:05Well, maybe not, if you head to the auctions.
0:02:05 > 0:02:08£130,000 plus was the guide price
0:02:08 > 0:02:12for this three-bedroomed semidetached with a garage.
0:02:12 > 0:02:13Let's take a look inside.
0:02:19 > 0:02:22That's a good start. You've got this nice little porch area.
0:02:22 > 0:02:25And then, through into the main part of the house.
0:02:25 > 0:02:28Stairs up to your bedrooms and a nice area here
0:02:28 > 0:02:30that welcomes you when you come in
0:02:30 > 0:02:32- through the front door. - LOUD SQUEAKING
0:02:32 > 0:02:34Ooh, squeaky floorboards!
0:02:34 > 0:02:36Um, but, er, through here to the kitchen,
0:02:36 > 0:02:39it's not as big as I would've hoped, um,
0:02:39 > 0:02:42but it's in half-decent nick and, yeah, it's looking all right so far.
0:02:46 > 0:02:49Spoke too soon! Come and have a look.
0:02:49 > 0:02:50HE WINCES
0:02:50 > 0:02:52This is the lounge. It's been knocked through.
0:02:52 > 0:02:56That isn't the problem. It's the floor.
0:02:56 > 0:02:59Cos, if you look, I don't know if you can see,
0:02:59 > 0:03:02but it's sloping back into this corner.
0:03:02 > 0:03:06Um, I don't...I don't want to guess the differences
0:03:06 > 0:03:09between the level here and over there, but it's got to be...
0:03:09 > 0:03:13two, three, four inches. Yeah, seriously.
0:03:13 > 0:03:15It's a shame, cos it's a nice-sized room and
0:03:15 > 0:03:19I like the bay window there, lovely little conservatory on the back.
0:03:19 > 0:03:22But we're down to some basics here. That ain't good!
0:03:22 > 0:03:26Suddenly, that guide price makes sense.
0:03:26 > 0:03:29We could be looking at the dreaded subsidence here.
0:03:34 > 0:03:39# Yeah we're all very worried about you... #
0:03:39 > 0:03:43The first thing I would do here is get a full structural survey
0:03:43 > 0:03:47and find out if there's a serious issue or not.
0:03:48 > 0:03:50HE SIGHS
0:03:50 > 0:03:53Well, let's see what's upstairs. Fairly traditional layout.
0:03:53 > 0:03:57Um, bathroom and loo there, looks in pretty decent condition.
0:03:57 > 0:04:01A small bedroom at the front, larger bedroom there, also on the front,
0:04:01 > 0:04:04and in the back bedroom, unfortunately,
0:04:04 > 0:04:09it's back to those same old problems of major slopes.
0:04:09 > 0:04:11Now, I can't see any sort of... Oh!
0:04:11 > 0:04:15I was almost going to say I can't see any serious cracks in the wall!
0:04:15 > 0:04:17But, er, that's not ideal. I mean, you don't need to see cracks!
0:04:17 > 0:04:21You just literally stand here and see it!
0:04:21 > 0:04:23It mirrors what's happening downstairs,
0:04:23 > 0:04:28which means that this part of the house is definitely settling, um...
0:04:31 > 0:04:33Hmm... Ooh!
0:04:33 > 0:04:37# Oh-oh! Baby, I'm lost for words! #
0:04:37 > 0:04:41If it wasn't already obvious, I'm worried!
0:04:41 > 0:04:45Maybe outside will provide some good news.
0:04:45 > 0:04:48Well, at the rear of the property, it's good news and bad news.
0:04:48 > 0:04:51The good news is this garden!
0:04:51 > 0:04:57Absolutely charming, especially on a day like today, a lovely space.
0:04:57 > 0:05:02The bad news is that underneath here is an old riverbed.
0:05:02 > 0:05:05Now, I know that, because I've been doing something which you should do
0:05:05 > 0:05:08if ever you look at a property, and that is talk to the neighbours.
0:05:08 > 0:05:12And, apparently, there was once a river which flowed from up there,
0:05:12 > 0:05:15basically, down there, along this line.
0:05:15 > 0:05:19And that resulted, when it dried out, when that river dried out,
0:05:19 > 0:05:20the riverbed dried out,
0:05:20 > 0:05:24in subsidence issues for some of these properties.
0:05:24 > 0:05:29Now, at the back here, you can see this rear wall,
0:05:29 > 0:05:33some signs of structural issues in the past
0:05:33 > 0:05:36and certainly those internal rooms would back that up.
0:05:36 > 0:05:39The big question, of course, is - is it historic?
0:05:39 > 0:05:42Is the house still moving or is it something that's
0:05:42 > 0:05:45happened in the past, as in historic?
0:05:45 > 0:05:49That, really, is only a question which a good structural survey
0:05:49 > 0:05:51is going to be able to answer.
0:05:52 > 0:05:57Now, lots of old houses have movement. It's not uncommon.
0:05:57 > 0:06:00And, even if it's still on the move, there is
0:06:00 > 0:06:02remedial action you can take.
0:06:02 > 0:06:04But that costs money.
0:06:04 > 0:06:09I'm really disappointed that what is a lovely, bright, spacious house
0:06:09 > 0:06:11has what looks like a serious issue.
0:06:11 > 0:06:15Certainly, that guide price of 130 grand is tempting.
0:06:15 > 0:06:18If we make an assumption that the problems caused by that riverbed
0:06:18 > 0:06:22are historic, what could this house fetch on the open market?
0:06:22 > 0:06:25If the property was updated and renovated,
0:06:25 > 0:06:29we'd probably recommend an asking price in the region of £165,000.
0:06:29 > 0:06:31Hmm, now there is room for profit,
0:06:31 > 0:06:36if it turns out the movement is historical, but if it needs fixing,
0:06:36 > 0:06:40then you could be talking about a lot of money to underpin the house.
0:06:40 > 0:06:43So, the result of a survey is crucial.
0:06:43 > 0:06:47What's the rental market like for a house like this in this lovely area?
0:06:47 > 0:06:52You'd probably see a rent in the region of £750 per calendar month.
0:06:52 > 0:06:54Well, sometimes, when it comes to buying property,
0:06:54 > 0:06:57you have to make informed compromises.
0:06:57 > 0:07:01In this case, the cost of putting right those slopey floors
0:07:01 > 0:07:06and potential subsidence, against the fact, if this house was perfect,
0:07:06 > 0:07:09it'd probably cost a lot more money. It's a choice you have to make.
0:07:09 > 0:07:12Let's see who made it when it went under the hammer.
0:07:14 > 0:07:18We've got a three-bedroom semidetached property here.
0:07:18 > 0:07:20I ask for 130 anywhere?
0:07:20 > 0:07:21OK, how about 120?
0:07:21 > 0:07:24Do I have any bid at 120,000?
0:07:24 > 0:07:28Sitting down, gentleman on the front row, at £120,000.
0:07:28 > 0:07:30121 bid. 122.
0:07:30 > 0:07:32123?
0:07:32 > 0:07:34122, on the front row.
0:07:34 > 0:07:36123 anywhere else?
0:07:37 > 0:07:38123 bid.
0:07:38 > 0:07:41124. 125?
0:07:41 > 0:07:44I'm here, at £124,000, we want to sell.
0:07:44 > 0:07:46Take 500, if it will help, but I'm going to sell.
0:07:46 > 0:07:48124½.
0:07:48 > 0:07:50125.
0:07:50 > 0:07:52125½.
0:07:52 > 0:07:55In the front row at 125. It's your last chance. I want to sell.
0:07:55 > 0:07:59It's a great buy, this. £125,000.
0:07:59 > 0:08:01I'm going once at 125.
0:08:01 > 0:08:05Then, for the second time, at £125,000.
0:08:05 > 0:08:10- GAVEL BANGS - Sold on the front row for £125,000.
0:08:10 > 0:08:13Congratulations, you can go and have a drink now.
0:08:13 > 0:08:14MUSIC: Get Lucky by Daft Punk
0:08:14 > 0:08:17Cheers to that! They look pretty delighted.
0:08:17 > 0:08:21Getting the semi for 125,000, that's under the guide price,
0:08:21 > 0:08:23are Jessica and Sean.
0:08:24 > 0:08:27Jessica, who works for an advertising agency,
0:08:27 > 0:08:31and Sean, who is a data analyst for the same company, are engaged
0:08:31 > 0:08:33and live with their parents.
0:08:34 > 0:08:37They had set their wedding date for a year's time,
0:08:37 > 0:08:40but now they've bought their first home together, that's on hold.
0:08:42 > 0:08:44Jessica, Sean, great to meet you both.
0:08:44 > 0:08:47- Nice to meet you.- Nice to meet you too.- Congratulations.- Thank you.
0:08:47 > 0:08:49Tell me why you wanted to buy the house.
0:08:49 > 0:08:53I always loved this area and I said I really want to be in this area,
0:08:53 > 0:08:55but we didn't think we could afford it.
0:08:55 > 0:08:59Because all the properties around this area are well above our budget,
0:08:59 > 0:09:02- so...- Mm-hm.- ..I thought the only chance in getting it
0:09:02 > 0:09:04would be auction, so that's why we went to the auctions.
0:09:04 > 0:09:07Yeah, we did actually try to put an offer in for this,
0:09:07 > 0:09:09but they said they were expecting more,
0:09:09 > 0:09:11cos we were going to offer 130 for it, but they said they were
0:09:11 > 0:09:15expecting a little bit higher, so just to see how it goes in auction.
0:09:15 > 0:09:19But we ended up getting it for 125, so obviously it's better.
0:09:19 > 0:09:21'That's great news for a couple with a tight budget,
0:09:21 > 0:09:25'but the purchase wasn't without its risks.'
0:09:25 > 0:09:29Literally an hour before the auction, we decided to go along.
0:09:29 > 0:09:32- But you've seen it beforehand? - No, we didn't.- From the outside.
0:09:32 > 0:09:36- What?!- We saw it from the outside. We looked at pictures!
0:09:36 > 0:09:38Have you read the legal pack?
0:09:38 > 0:09:40- No.- Oh, guys!
0:09:40 > 0:09:42NERVOUS LAUGHTER
0:09:42 > 0:09:43No, but we loved it and we thought,
0:09:43 > 0:09:46"We don't care what it's like inside, even if it's just a shell,"
0:09:46 > 0:09:48because we just really wanted to be in the area.
0:09:48 > 0:09:49This is the area to be in.
0:09:49 > 0:09:52- It's a lovely area, isn't it? - Yeah.- It really is.
0:09:54 > 0:09:58'Heart ruling head here. These guys are taking a risk for sure.'
0:09:58 > 0:10:01# Yeah, we're living on the edge!
0:10:04 > 0:10:07# Living on the edge! #
0:10:07 > 0:10:10'After falling for the location, how did they feel
0:10:10 > 0:10:14'when they finally saw inside the house?'
0:10:14 > 0:10:19When we first came in, and we saw the tilt... Ha!
0:10:19 > 0:10:23..we were really worried and I remember we were panicking, but...
0:10:23 > 0:10:27we got reassured off the neighbours and we had a structural engineer
0:10:27 > 0:10:29that came out and the previous owner had one
0:10:29 > 0:10:34and they had a document and we were able to get our names on the report
0:10:34 > 0:10:36and he gave it the OK, I spoke to him on the phone
0:10:36 > 0:10:40and he said it's cos the house was built in 1953.
0:10:40 > 0:10:44I think there's about eight houses going down the street dropped,
0:10:44 > 0:10:48with the river, and it was about 30 years ago and they've been there
0:10:48 > 0:10:5128 years and it hasn't moved since, so it's settled now.
0:10:51 > 0:10:53And the structural engineer confirmed that,
0:10:53 > 0:10:56so we're relieved, but it was a bit extra work than we thought...
0:10:56 > 0:10:58- Yeah, still a big job. - ..with the floorboards.
0:10:58 > 0:11:01What was the period of time in between seeing this
0:11:01 > 0:11:04- and getting yourselves reassured? - Um...- A couple of days.
0:11:04 > 0:11:07- A couple of days, yeah. - Did you sleep?- Er, no.
0:11:07 > 0:11:10- I was really worried, it was a stressful time.- Yeah.
0:11:10 > 0:11:12- And were you relying on a mortgage? - Mm-hm.- Yes.
0:11:12 > 0:11:15So, if it had got real structural problems, that might have been
0:11:15 > 0:11:18- an issue as well.- Yes. - Yeah. So, quite panicked.
0:11:20 > 0:11:24'So, the good news here is that Jessica and Sean's gamble paid off.
0:11:24 > 0:11:28'They've got themselves a fantastic house and garden
0:11:28 > 0:11:31'in a lovely area for less than they originally offered.
0:11:31 > 0:11:34'And they know the subsidence issue is nothing to worry about.
0:11:34 > 0:11:36'Absolutely brilliant.
0:11:37 > 0:11:40'Jessica's dad, Paul, is an electrician
0:11:40 > 0:11:44'and all-round handy person, so he'll be doing the work.
0:11:44 > 0:11:47'They have a £7,000-£8,000 budget,
0:11:47 > 0:11:50'and that will also have to cover a complete rewire
0:11:50 > 0:11:55'and central heating installation, not to mention total redecoration.
0:11:55 > 0:12:00'The couple hope to get it all done in four to five months.
0:12:00 > 0:12:03'But what about that postponed wedding?'
0:12:04 > 0:12:07So, how far had you got down planning the wedding?
0:12:07 > 0:12:09Well, I had bought my wedding dress. LAUGHTER
0:12:09 > 0:12:11- You had?- Yes.- Yes.
0:12:11 > 0:12:15But we didn't really have anything else sorted, so not too bad.
0:12:15 > 0:12:18- Wow! But you hadn't booked a venue? - No, we hadn't yet.- No.
0:12:18 > 0:12:20- We were close!- We were about to, yeah.- Close to booking one.
0:12:20 > 0:12:23So the wedding's delayed by a year, so you can sort this place out
0:12:23 > 0:12:27and also it financially helps a bit, to have a bit more time.
0:12:27 > 0:12:30- And nice to come back to a nice house after our honeymoon.- Yeah.
0:12:30 > 0:12:32How great is that? Yeah!
0:12:32 > 0:12:34Well, congratulations, I'm really delighted for you both.
0:12:34 > 0:12:37- Thank you.- Good luck with it. We look forward to seeing
0:12:37 > 0:12:40- how you get on sorting it out. - Thanks.- Thank you.
0:12:42 > 0:12:47Well, what a fantastic first home for Sean and Jessica.
0:12:47 > 0:12:51They're delighted and I can completely understand why.
0:12:51 > 0:12:54How will they get on turning this into their home?
0:12:54 > 0:12:55You can find out later in the show.
0:12:58 > 0:13:01MUSIC: Umbrella (feat. Jay-Z) by Rihanna
0:13:01 > 0:13:05Leyton in East London is an area on the up.
0:13:05 > 0:13:06Lying to the east of Hackney Marshes,
0:13:06 > 0:13:11this diverse and bustling district also includes part of Olympic Park.
0:13:11 > 0:13:15And with prices rising in nearby Bethnal Green and Bow,
0:13:15 > 0:13:18this is one to keep your eye on.
0:13:18 > 0:13:21Well, I'm here to see a ground-floor flat
0:13:21 > 0:13:23in this end-of-terrace property.
0:13:23 > 0:13:26Now, I think it's just great to be at the end
0:13:26 > 0:13:29of a no through road like this, because it's so quiet.
0:13:29 > 0:13:34It's got one bedroom, it had a guide price at auction of £170,000 plus.
0:13:34 > 0:13:37Looks good from the outside. Let's take a closer look inside.
0:13:37 > 0:13:39# But it's raining more than ever
0:13:39 > 0:13:42# Know that we'll still have each other
0:13:42 > 0:13:45# You can stand under my umbrella Ella, ella... #
0:13:45 > 0:13:49Oh! A perfect place, look, to hang up my brolly.
0:13:49 > 0:13:52So it's a little bit squeezed once you walk in the flat.
0:13:52 > 0:13:54You've got a bathroom right ahead of you.
0:13:54 > 0:13:56And into the lounge.
0:13:56 > 0:14:00Now, fantastic, I'm excited straight away, because look what you've got!
0:14:00 > 0:14:01Some shutters!
0:14:01 > 0:14:03And they're not all stuck together with
0:14:03 > 0:14:06a million years' worth of paint! Look! They actually work!
0:14:06 > 0:14:11It's such a shame that underneath, of course, you've got UPVC windows
0:14:11 > 0:14:14and not lovely traditional sashes, but I don't think it's worth
0:14:14 > 0:14:17changing them, because, in a flat like this, well, they work
0:14:17 > 0:14:19and they're clean and, well, they look all right, I think.
0:14:19 > 0:14:22But you've got high ceilings, a little bit of cornicing.
0:14:22 > 0:14:24And, if you look beyond this awful laminate
0:14:24 > 0:14:26that's everywhere around the flat,
0:14:26 > 0:14:31I think you might even be able to salvage these floorboards.
0:14:31 > 0:14:33A bit of sanding, bit of staining.
0:14:33 > 0:14:36So, bags of character in this flat, which is fantastic!
0:14:36 > 0:14:39Let's hope the rest of the property is just as good.
0:14:43 > 0:14:46So, next to the kitchen, at the rear of the property, well,
0:14:46 > 0:14:48you've got the only bedroom.
0:14:48 > 0:14:51Now, with a flat, you've always got to make the most of every single
0:14:51 > 0:14:56square inch and here, well, look, you've got a big walk-in wardrobe.
0:14:56 > 0:15:00Straight away, I'm thinking, is that a possible en-suite?
0:15:00 > 0:15:02Obviously it depends on where the drains are
0:15:02 > 0:15:05and how tricky it will be to plumb a loo and a shower in there,
0:15:05 > 0:15:08but I think it's worth investigating.
0:15:10 > 0:15:12Before adding an en-suite,
0:15:12 > 0:15:15you may want to upgrade the current bathroom.
0:15:15 > 0:15:17And much the same for the kitchen,
0:15:17 > 0:15:19which is looking a little bit tired too.
0:15:19 > 0:15:23But before you do any work, there's some lease legals to alert you to.
0:15:27 > 0:15:30You could, of course, think about maybe rejigging
0:15:30 > 0:15:34the layout in this flat. But flats are usually leasehold,
0:15:34 > 0:15:37which means any major changes that you wish to make,
0:15:37 > 0:15:40such as knocking walls through, like this, or changing the layout,
0:15:40 > 0:15:43well, it has to be okayed by the freeholder of the building.
0:15:43 > 0:15:47But in this case, buy this flat and you do buy a share of the freehold.
0:15:47 > 0:15:50Now, it does mean, if you want to do anything major here,
0:15:50 > 0:15:53then you'll need all the flat owners' permissions in the property.
0:15:53 > 0:15:55They must all agree.
0:15:55 > 0:15:58But often that's much easier than trying to track down
0:15:58 > 0:16:02and persuade a distant and sometimes absentee freeholder.
0:16:02 > 0:16:07# It's a complicated situation, Mama
0:16:07 > 0:16:11# I'm a complicated situation... #
0:16:14 > 0:16:16Dealing with a freeholder isn't always easy,
0:16:16 > 0:16:19but you do need someone to take care of the communal areas
0:16:19 > 0:16:22as well as the general fabric of the building.
0:16:22 > 0:16:25They can set rules on things, like noise, pets
0:16:25 > 0:16:27and what you can and can't do in the flat.
0:16:27 > 0:16:30In a case where the neighbours all share the freehold,
0:16:30 > 0:16:32then you arguably might have more freedom,
0:16:32 > 0:16:36but you'll have to set up a formal agreement.
0:16:36 > 0:16:39Either way, of course, it could end up complicated
0:16:39 > 0:16:43and I'd recommend reading that legal pack to look at the detail.
0:16:43 > 0:16:46In this case, there are three flats in the building
0:16:46 > 0:16:48and the owners created a management company
0:16:48 > 0:16:52to share the decisions and costs of any work.
0:16:52 > 0:16:56So hopefully doing a major rejig will not be complicated after all.
0:16:56 > 0:16:58Does a local estate agent
0:16:58 > 0:17:00think it needs that much reworking, though?
0:17:00 > 0:17:02Well, obviously it's a little bit tired.
0:17:02 > 0:17:05It needs some work doing to it. It looks like somebody's had
0:17:05 > 0:17:07a little go at the plasterwork and it's just tatty,
0:17:07 > 0:17:09but actually, it's not beyond repair at all.
0:17:09 > 0:17:12I think there's potential to perhaps reconfigure
0:17:12 > 0:17:14the accommodation, possibly to even squeeze in two bedrooms.
0:17:14 > 0:17:16Ooh, interesting!
0:17:16 > 0:17:19How would the agent recommend getting that second bedroom?
0:17:19 > 0:17:23There's potential for transforming the kitchen that we have here
0:17:23 > 0:17:27into possibly a small bedroom, sacrificing the bathroom
0:17:27 > 0:17:29and punching a hole through into the living room,
0:17:29 > 0:17:31so you've got a kitchen-dining room.
0:17:31 > 0:17:34So, you have a kitchen-dining room, you have no bathroom then,
0:17:34 > 0:17:37you have a small bedroom here, a bedroom next door
0:17:37 > 0:17:38but there's a walk-in cupboard,
0:17:38 > 0:17:43possibly you can put a loo in there, a hand basin and a shower.
0:17:43 > 0:17:46Should you squeeze in that second bedroom?
0:17:46 > 0:17:49Easy way to answer - what does it add to values?
0:17:51 > 0:17:53It's certainly a great area for renting.
0:17:53 > 0:17:56I think, as a one-bedroom flat, you're probably looking -
0:17:56 > 0:17:58refurbished to a reasonably good standard -
0:17:58 > 0:18:02something like about £900-£950 per calendar month.
0:18:02 > 0:18:04A two-bedroom flat, you'll probably get about 10% more,
0:18:04 > 0:18:07so you're probably going to be looking over the £1,000 mark,
0:18:07 > 0:18:10probably about £1,050-£1,100 a month.
0:18:10 > 0:18:11As a one-bedroom flat,
0:18:11 > 0:18:15I think we're looking at £245,000, perhaps £250,000.
0:18:15 > 0:18:18Again, as a two-bedroom flat, you might be looking at 5%-10% more,
0:18:18 > 0:18:22so I think you'd probably market it at something like 270,000,
0:18:22 > 0:18:25but you might be achieving somewhere around 260-265.
0:18:26 > 0:18:29So this is a one-bed flat that has bags of potential.
0:18:29 > 0:18:31Oh, and those lovely shutters!
0:18:31 > 0:18:34You could do up what's here or you could just rejig the layout
0:18:34 > 0:18:38and make better use of the space. It's all up to the new owner.
0:18:38 > 0:18:41So let's find out who bid for this one at the auction.
0:18:43 > 0:18:47Unfortunately, we are unable to show you the bidding for this lot.
0:18:48 > 0:18:51But I can tell you that you didn't miss much,
0:18:51 > 0:18:55as the flat didn't meet its reserve price and the hammer failed to fall.
0:18:56 > 0:19:01But Miles, who is a builder, bought it after auction for 187,000
0:19:01 > 0:19:06and explained what happened when I went along to meet him.
0:19:06 > 0:19:09- Miles, congratulations.- Hey, thanks. - So, tell me the story!
0:19:09 > 0:19:13So, we were bidding, it went up to 186, another guy bid 187
0:19:13 > 0:19:16and, er, so then we dropped out, the hammer didn't come down
0:19:16 > 0:19:19and the auctioneer said it couldn't be sold cos it was under reserve.
0:19:19 > 0:19:22Someone came straight up to me and said, "What's your maximum?
0:19:22 > 0:19:23"We've got the seller on the phone."
0:19:23 > 0:19:26and I said, "I've kind of gone over it a little bit,
0:19:26 > 0:19:28- "so maybe that guy over there will be up for paying 187."- Yeah.
0:19:28 > 0:19:31He ended up having gone well over his budget by, like,
0:19:31 > 0:19:32- seven grand or something.- Yes!
0:19:32 > 0:19:36So he'd got really carried away, I thought I'd gone over by two grand.
0:19:36 > 0:19:38- He had even more so! - I know, he'd gone nuts!- Ha-ha!
0:19:38 > 0:19:40And, um, so then there was a bit of back and forth
0:19:40 > 0:19:42between me and the owner and he said,
0:19:42 > 0:19:45"If you want to exchange today, like right now,
0:19:45 > 0:19:48"we can take it for 187," so I said, "Sure, let's go for it."
0:19:48 > 0:19:50- You see, that is luck on the day, Miles.- Yeah, pretty good.
0:19:50 > 0:19:53And it's things like that that I love so much about buying
0:19:53 > 0:19:56property at auction, because you never quite know what is going
0:19:56 > 0:19:59to happen and when you follow the journey of a property, it's great!
0:19:59 > 0:20:02- I know, exactly.- So it's your flat! - I know, it's wicked!
0:20:02 > 0:20:05'Miles has been in the building trade for three years
0:20:05 > 0:20:08'and he'll carry on with other projects in parallel with
0:20:08 > 0:20:10'doing this flat up to sell on.
0:20:10 > 0:20:14'So what was it that attracted him to this flat?'
0:20:14 > 0:20:17Like, it's an all right-looking brick building on the outside.
0:20:17 > 0:20:19Um, not like nasty, little, sort of
0:20:19 > 0:20:23prefabricated on the outside-looking building, so it's pretty nice.
0:20:23 > 0:20:27I'm not sure about these, like, UPVC put-ins,
0:20:27 > 0:20:30but if we can change that, yeah, it could be really nice.
0:20:30 > 0:20:33- So, the UPVC...- Yeah?- Do you think you're going to change them
0:20:33 > 0:20:35- for some traditional sashes? - Maybe.- Which I would love!
0:20:35 > 0:20:37Yeah, maybe, it just depends whether, I, like...
0:20:37 > 0:20:40met my Punjabi mates, so if they can hook me up with a good deal.
0:20:40 > 0:20:43- Did you literally meet some guys outside today?- Yeah, yeah, yeah!
0:20:43 > 0:20:45Yeah, just saw a guy with a turban out there,
0:20:45 > 0:20:47I thought he looked like my grandad, so I'll chat to him.
0:20:47 > 0:20:50- So he may be able to put some nice windows in here?- Yeah, maybe.
0:20:50 > 0:20:54'Ha-ha! But beyond potentially having the windows replaced
0:20:54 > 0:20:56'by a few passing tradesmen,
0:20:56 > 0:20:58'Miles has far more extensive layout plans.'
0:21:03 > 0:21:06I'm actually pretty set on what I think I'm going to do.
0:21:06 > 0:21:09- I'm going to take this wall out in the living room.- OK.
0:21:09 > 0:21:12- Make this a lounge-diner.- OK.- A bit of a kitchen L-shape over there.
0:21:12 > 0:21:15Then I'm going to push the bathroom back just a tiny bit
0:21:15 > 0:21:17into the kitchen and then leave the bedroom where it is.
0:21:17 > 0:21:19That seems like a bit of a luxury,
0:21:19 > 0:21:22to have the kitchen in this room, which is going to be smaller,
0:21:22 > 0:21:25and have the bathroom in the room which is currently the kitchen,
0:21:25 > 0:21:27- which is going to be huge.- Yeah.
0:21:27 > 0:21:29- Don't worry, I've got it sorted. - I am worried about that!
0:21:29 > 0:21:32I've got it all sorted! I'm going to push a little bit,
0:21:32 > 0:21:36- put a prefab door in there...- OK. - ..to make the kitchen a bit smaller,
0:21:36 > 0:21:38so the bathroom won't be the full size of the kitchen and then
0:21:38 > 0:21:42have a kind of...plumb in some place for a washing machine and, er,
0:21:42 > 0:21:44- a little bit of storage in that area there.- Ah, good!
0:21:44 > 0:21:48- So that will be a sort of walk-in utility area as well.- Exactly.
0:21:48 > 0:21:50I really feel like, living in London, there's
0:21:50 > 0:21:54- never anywhere to put stuff...- Yes! - ..when living in a one-bedroom flat,
0:21:54 > 0:21:56like your bike or the washing machine is kind of in the living room
0:21:56 > 0:21:59somewhere and you're just thinking there's no space for anything.
0:21:59 > 0:22:03Yeah, so I think make the kitchen and bathroom a little bit smaller
0:22:03 > 0:22:06and then have a sort of utility area on the entrance to the bathroom.
0:22:06 > 0:22:09When you first get somewhere, you've got all these different options,
0:22:09 > 0:22:12but moving the soil pipe for the bathroom to the back of the house
0:22:12 > 0:22:14is too much, so leaving the bedroom there is the easiest thing.
0:22:14 > 0:22:17I was going to say you could have a cheeky little walk-in shower room
0:22:17 > 0:22:20- right at the back.- I know, it does seem like that could be that,
0:22:20 > 0:22:22but soil pipes, plumbing and everything.
0:22:22 > 0:22:25- It's not going to be worth it?- Yeah.
0:22:25 > 0:22:28'Just as well there'll be no en-suite, as that's
0:22:28 > 0:22:32'a lot of layout changes and all on a budget of 10-12 grand.
0:22:32 > 0:22:34'Miles has been developing for several years and
0:22:34 > 0:22:36'with his experience and skills,
0:22:36 > 0:22:39'his two to three month timescale should be less of a worry.
0:22:41 > 0:22:45'Miles is looking to flip the flat and has a profit goal in mind.'
0:22:48 > 0:22:50I'm not trying to make, like, megabucks out of it,
0:22:50 > 0:22:53but if I can make sort of 30-40 grand, something like that...
0:22:53 > 0:22:56I mean, if I can do it in sort of three, four, five months,
0:22:56 > 0:22:58it's not bad if I can do two houses a year like that.
0:22:58 > 0:23:00- So, tell me a little about your family and wife.- Yeah.
0:23:00 > 0:23:02I know you've just had a little baby!
0:23:02 > 0:23:04- Yeah, we've just had a little kid called Brave.- Oh!
0:23:04 > 0:23:09- And how old is he?- He's five weeks. - Wow! So you're a new daddy.- Yeah.
0:23:09 > 0:23:11- You've got a new flat. - Can't you see the bags under my eyes?
0:23:11 > 0:23:14- How hard is it being a dad? - It's all right!
0:23:14 > 0:23:17Yeah, it's all right, we're loving it, a real little bliss time of just
0:23:17 > 0:23:20- being together and the baby and a bit of sleep deprivation as well.- Aw!
0:23:20 > 0:23:21Do you think this is a perfect job
0:23:21 > 0:23:24- while you can sort of combine fatherhood?- Exactly. It's perfect.
0:23:24 > 0:23:27We're just finishing a bit of stuff on our flat before we move
0:23:27 > 0:23:30back in there and, um, this is not very far from where we live,
0:23:30 > 0:23:33so I can kind of be flexible, so I can pop home if she needs me.
0:23:33 > 0:23:36So, tell me about what else you guys do.
0:23:36 > 0:23:39So, we've just come back from India, which is why we're just waiting
0:23:39 > 0:23:42to get back into her flat, because it was rented.
0:23:42 > 0:23:46My wife is a lawyer, she used to work for an organisation
0:23:46 > 0:23:49that sort of supported women's legal rights in India,
0:23:49 > 0:23:51vulnerable women and vulnerable people groups,
0:23:51 > 0:23:54and we set up a little business that, um, makes blankets
0:23:54 > 0:23:58out of sort of second-hand saris, which have been reused and recycled.
0:23:58 > 0:24:01So then those saris become these beautiful blankets and then
0:24:01 > 0:24:04now we're sort of bringing them back to the UK and selling them.
0:24:04 > 0:24:07The blanket business is something my wife can carry on with now
0:24:07 > 0:24:09in the first couple of months of maternity leave and then,
0:24:09 > 0:24:12I don't know, we'll see what happens once we finish this place.
0:24:12 > 0:24:15Miles, lovely meeting you today. Good luck with this project.
0:24:15 > 0:24:17- I can't wait to see the outcome. - Cool, thanks.- Thank you.
0:24:17 > 0:24:19- See you later. - Good luck with the baby!- Yeah.
0:24:20 > 0:24:24Well, Miles made the move back to London from India and started
0:24:24 > 0:24:29property developing a few years ago and now he's a new dad - brilliant!
0:24:29 > 0:24:33But how will he cope doing this place up and fatherhood?
0:24:33 > 0:24:35We'll find out how he gets on later in the programme.
0:24:38 > 0:24:41Coming up in Gainsborough, a two up, two down has a low guide price,
0:24:41 > 0:24:43but it's all looking good.
0:24:44 > 0:24:46This seems OK, I'm quite impressed.
0:24:48 > 0:24:51And in London, Miles is impressing too, with a new layout.
0:24:51 > 0:24:54It just seems like it suits the sort of person who would buy this flat
0:24:54 > 0:24:56much more than how it was before, all sectioned off.
0:25:01 > 0:25:04Earlier in the show, I was in Cochrane Park,
0:25:04 > 0:25:06a popular suburb of Newcastle,
0:25:06 > 0:25:12and I was here to see a three-bed semi guided at £130,000 plus.
0:25:12 > 0:25:17Dated decor, but a bright, spacious and well-kept interior.
0:25:17 > 0:25:18This seemed brilliant.
0:25:19 > 0:25:22Spoke too soon! Come and have a look.
0:25:22 > 0:25:24HE WINCES
0:25:24 > 0:25:29It's the floor! It's sloping back into this corner.
0:25:29 > 0:25:30That ain't good!
0:25:30 > 0:25:33# Standing in a slide zone
0:25:33 > 0:25:36# Stepping in a slide zone
0:25:37 > 0:25:40# He told me where a river flows
0:25:40 > 0:25:44# He showed me how the apple grows... #
0:25:44 > 0:25:49Yes, a dried riverbed had created some movement in the house.
0:25:49 > 0:25:51But it was all smiles at the auction
0:25:51 > 0:25:55for recently-engaged couple Jessica and Sean.
0:25:55 > 0:25:59Sold on the front row for £125,000.
0:25:59 > 0:26:02The couple hadn't viewed the house or read the legal pack
0:26:02 > 0:26:05before buying it for 125 grand! Yikes!
0:26:06 > 0:26:09We thought, "I don't care what it's like inside, even if it is
0:26:09 > 0:26:12"just going to be a shell," because we just wanted to be in the area.
0:26:12 > 0:26:14But then they did all the right things -
0:26:14 > 0:26:16talking to the neighbours
0:26:16 > 0:26:20and reading a structural surveyor's report.
0:26:20 > 0:26:24We were panicking, but we got reassured off the neighbours and we
0:26:24 > 0:26:28had a structural engineer that came out and the previous owner had one.
0:26:28 > 0:26:31He gave it the OK. I spoke to him on the phone and he says it's all...
0:26:31 > 0:26:34It's cos the house was built in 1953.
0:26:34 > 0:26:39They hoped to make this their dream home in six months.
0:26:39 > 0:26:4618 months on, we went back to meet them and find out how they got on.
0:26:46 > 0:26:49MUSIC: I Love It (feat. Charli XCX) by Icona Pop
0:27:09 > 0:27:11# I love it! #
0:27:18 > 0:27:22It took a while, but the couple's first home together looks great!
0:27:22 > 0:27:25So, when did they finally move in?
0:27:25 > 0:27:29And what work was needed to bring it up to standard?
0:27:29 > 0:27:31We moved in around four months ago.
0:27:31 > 0:27:35We've had an electrical rewire and a full heating system put in.
0:27:35 > 0:27:38And then, obviously, the main thing was the raising of the floors,
0:27:38 > 0:27:41cos once we raised the floors, we realised the ceilings
0:27:41 > 0:27:45looked like they ran out a little bit, so we then straightened
0:27:45 > 0:27:48the ceiling, so everything was perfectly straight, so we could
0:27:48 > 0:27:52lay the laminate and get the carpets and everything down that we wanted.
0:27:52 > 0:27:54- So it was a bit scary at one point. - Yeah.- Cos you could look
0:27:54 > 0:27:56right through to the bedroom! SHE LAUGHS
0:27:56 > 0:27:59- Just being a case of kind of redecorating and...- Yeah.
0:27:59 > 0:28:02..after all the structural stuff's down.
0:28:02 > 0:28:07But the structural work did take time, as it was fairly extensive.
0:28:09 > 0:28:11Well, when we first bought the house, there was
0:28:11 > 0:28:14a structural engineer who came out and he said there was
0:28:14 > 0:28:18a bit of historic subsidence, but there'd been no movement since.
0:28:18 > 0:28:19It wasn't really much of a problem,
0:28:19 > 0:28:23but you could see with your eye and we kind of wanted to raise it,
0:28:23 > 0:28:26just so it looked, like, straight and had a nice finish to it.
0:28:26 > 0:28:28Stripped it right back down to the joists
0:28:28 > 0:28:31and got the joists straightened and levelled out and then
0:28:31 > 0:28:34the rock on top of that and then the floorboards down
0:28:34 > 0:28:39and got it all raised up, with a large help from Jessica's dad.
0:28:39 > 0:28:42Jessica's handy dad, Paul, is an electrician by trade,
0:28:42 > 0:28:46so how did he help on the house?
0:28:46 > 0:28:49- SHE LAUGHS: My dad has done a lot of the work.- Yes.
0:28:49 > 0:28:51But we've tried to help where we can.
0:28:51 > 0:28:54He's just such a handyman, he can do most jobs around the house,
0:28:54 > 0:28:56so we're trying to learn.
0:28:56 > 0:28:59He came up with the idea of putting some insulation, things like that,
0:28:59 > 0:29:01just to keep the house warmer, things like that,
0:29:01 > 0:29:03so it's been really interesting.
0:29:03 > 0:29:06Jessica and Sean now have a fabulous home
0:29:06 > 0:29:10and they've tackled all the issues that need tackling.
0:29:10 > 0:29:12But that has cost them in time.
0:29:12 > 0:29:16So has it had an impact on their budget?
0:29:16 > 0:29:20The original budget was £7,000. We did stick to budget.
0:29:20 > 0:29:22- It's mainly little jobs now. - Snagging, yeah.
0:29:22 > 0:29:25I feel like the bulk of it's done, cos we had quite a lot to do.
0:29:25 > 0:29:28But we'd like to get the third bedroom made into, like,
0:29:28 > 0:29:30an office or something and then eventually
0:29:30 > 0:29:34we would like to extend, but that's a little while off after the, um,
0:29:34 > 0:29:37the wedding and things. We can't afford to just yet.
0:29:37 > 0:29:39Excellent budgeting for structural work,
0:29:39 > 0:29:41central heating and a new bathroom.
0:29:41 > 0:29:45But is that the wedding fund all gone, then?
0:29:45 > 0:29:47We were going to get married last year, but then money,
0:29:47 > 0:29:50and also we didn't want to take on such a big project
0:29:50 > 0:29:52with the house and then plan a wedding at the same time.
0:29:52 > 0:29:54We were going to put it off for about two years,
0:29:54 > 0:29:57but we're actually getting married in a few months, so...
0:29:57 > 0:30:00Just put it off a little bit, just so we could afford
0:30:00 > 0:30:02to do the house how we wanted it and a bit more
0:30:02 > 0:30:05of a stress-free wedding planning, if there is such a thing.
0:30:07 > 0:30:08Well, there's lots of people
0:30:08 > 0:30:11who would tell you there are no such things
0:30:11 > 0:30:15as stress-free weddings. Let's hope two local estate agents
0:30:15 > 0:30:18don't get cold feet with this property.
0:30:18 > 0:30:22Let's start with the agent who saw it the first time.
0:30:22 > 0:30:25I think the property has been refurbished to a good standard
0:30:25 > 0:30:28and has a contemporary finish to it, so I think it should
0:30:28 > 0:30:31really appeal to the first-time buyers and the young family market.
0:30:31 > 0:30:34I think the property's been decorated to a nice standard,
0:30:34 > 0:30:37um, quite modern, neutral,
0:30:37 > 0:30:40er, shouldn't have any problems on a resale.
0:30:40 > 0:30:44The purchase and renovation cost £132,000.
0:30:44 > 0:30:47So, while they'll be here for the foreseeable future,
0:30:47 > 0:30:50what's the property's value now?
0:30:50 > 0:30:53I would hope to achieve £175,000.
0:30:53 > 0:30:55In the current market, I think I could achieve
0:30:55 > 0:30:58in the region of £174,000.
0:30:58 > 0:30:59- Whoa!- Whoa, lots of money.
0:30:59 > 0:31:02That's higher than we thought. I'm over the moon with that.
0:31:02 > 0:31:05- That's a lot higher than we thought. - That's really good, yes.
0:31:05 > 0:31:06Wow indeed!
0:31:06 > 0:31:11But that potential pre-tax profit of £43,000 could be even higher.
0:31:11 > 0:31:16Jessica and Sean have mentioned they may extend in the future,
0:31:16 > 0:31:18so what would that do to values?
0:31:20 > 0:31:23Family buyers are really looking for a nice-sized dining kitchen.
0:31:23 > 0:31:26So if I was to do this property, personally I would
0:31:26 > 0:31:29take the property out and extend it over the back of the garage
0:31:29 > 0:31:32and I think I would look to achieve in the region of £185,000.
0:31:32 > 0:31:35I think if it was turned into a four-bed property,
0:31:35 > 0:31:41I would be looking to achieve £185,000, maybe, to £190,000.
0:31:41 > 0:31:45- Wow! That's really good. - It is really good. Yeah.
0:31:45 > 0:31:49I bet a pre-tax profit of £63,000
0:31:49 > 0:31:52wouldn't go amiss in the wedding fund right now,
0:31:52 > 0:31:55but the couple are settling in for their future here.
0:31:55 > 0:31:58It could have all been so different, though,
0:31:58 > 0:32:02as they said "I do" to the property before they'd even seen it.
0:32:02 > 0:32:07And they have had to live elsewhere for over a year. So, any regrets?
0:32:07 > 0:32:09- Definitely no regrets. - Definitely no regrets.
0:32:09 > 0:32:12I mean, we knew as soon as we bought the house it was perfect.
0:32:12 > 0:32:15Just to get a house in this area for the price we did,
0:32:15 > 0:32:18we're just over the moon and there's definitely no regrets after...
0:32:18 > 0:32:20- hearing the valuation we just had. - THEY LAUGH
0:32:20 > 0:32:23It's been a good experience as well. We've enjoyed every minute of it.
0:32:29 > 0:32:31Situated on the River Trent in Lincolnshire,
0:32:31 > 0:32:35and 18 miles from the city of Lincoln itself, is Gainsborough.
0:32:35 > 0:32:39So, the property I'm here to see is not far for the centre, but it does
0:32:39 > 0:32:44have good bus and train links into the city centre of Lincoln.
0:32:44 > 0:32:49Now, it's a two-bed mid-terrace with a guide price of £28,000.
0:32:49 > 0:32:50Let's take a look.
0:32:54 > 0:32:56Nice, bright.
0:32:56 > 0:32:58And these floorboards seem to be in decent condition.
0:32:58 > 0:33:00Now, you've got options with floorboards.
0:33:00 > 0:33:03For me, I like to have a nice carpet underfoot, but you could actually
0:33:03 > 0:33:06sand these down, spruce them up, you could make a feature of those.
0:33:06 > 0:33:10I have noticed over here, though, which did catch my eye,
0:33:10 > 0:33:13there's a huge crack in this wall here.
0:33:13 > 0:33:16That would have to be sorted out. Get it checked out as soon as possible.
0:33:16 > 0:33:18There's a few period features there,
0:33:18 > 0:33:21a bit of coving around the side there, which is quite nice.
0:33:21 > 0:33:24All in all, a good start, a nice big bay window as well.
0:33:24 > 0:33:27Go through here. Stairs up to the bedrooms.
0:33:27 > 0:33:30Into the kitchen area, and the bathroom is just through there,
0:33:30 > 0:33:32on from the kitchen, which is
0:33:32 > 0:33:34a feature that you do get with this kind of property.
0:33:34 > 0:33:37They usually put the bathroom downstairs on from the kitchen,
0:33:37 > 0:33:40in the extended part of the property, but this kitchen seems
0:33:40 > 0:33:43to be in good condition and these units seem to be OK.
0:33:43 > 0:33:45You could actually maybe keep them.
0:33:45 > 0:33:47It depends on what you want to do with the property.
0:33:47 > 0:33:49This seems OK. I'm quite impressed.
0:33:50 > 0:33:53And as for the bathroom, well, the suite looks in good nick
0:33:53 > 0:33:56and almost ready for a nice relaxing soak.
0:33:56 > 0:34:00The only worrying sign is a patch of damp on the kitchen ceiling.
0:34:00 > 0:34:04So, along with that front room crack, that will need looking at.
0:34:04 > 0:34:09Upstairs, two bedrooms of decent size, by the looks of them.
0:34:09 > 0:34:11This is the one at the front of the property.
0:34:11 > 0:34:14Nice high ceilings again and some really nice floorboards in there.
0:34:14 > 0:34:16Keep them as they are or carpet it, your choice.
0:34:16 > 0:34:18Into this bedroom here at the back
0:34:18 > 0:34:21and it looks like somebody's already started to put some pipework in
0:34:21 > 0:34:24under the floorboards, but again, a decent bedroom.
0:34:24 > 0:34:27And now I'm here, I can look through the window here and see
0:34:27 > 0:34:29the extended part of the property has got a flat roof.
0:34:29 > 0:34:31Now, I'm not a big fan of flat roofs,
0:34:31 > 0:34:34but if you keep them in good condition, they will be fine.
0:34:34 > 0:34:38And just at the back, over there, I can see that's the railway track.
0:34:38 > 0:34:39Now, if you get something like this,
0:34:39 > 0:34:44you are on the right lines to making a decent amount of profit.
0:34:46 > 0:34:48The garden is a reasonable size
0:34:48 > 0:34:50and I note that the neighbours
0:34:50 > 0:34:53have extended the properties by much more than this one,
0:34:53 > 0:34:56so there is a precedent if you wanted to go bigger.
0:34:56 > 0:34:59However, I for one would be happy with things the way they are.
0:35:01 > 0:35:03There are definite plus points with this property.
0:35:03 > 0:35:07Good inside and outside space and there's double glazing
0:35:07 > 0:35:12at the front and the back and no obvious structural work needed.
0:35:12 > 0:35:14It's a two up, two down mid-terrace,
0:35:14 > 0:35:18which, for a guide price of £28,000, has very few issues.
0:35:22 > 0:35:26But what does a local estate agent think of this place?
0:35:26 > 0:35:27Positives with the property -
0:35:27 > 0:35:29closeness to the town centre,
0:35:29 > 0:35:32good-sized rooms, good-sized rear yard.
0:35:32 > 0:35:36Negatives to this property - situated on a fairly busy road,
0:35:36 > 0:35:38there's a lack of off-street parking
0:35:38 > 0:35:41and the property also backs onto a railway line.
0:35:41 > 0:35:43To get the property up to scratch,
0:35:43 > 0:35:46I think you need to spend in the region of £5,000-£7,000.
0:35:47 > 0:35:51So, if it goes for anything like its guide price of £28,000,
0:35:51 > 0:35:53then getting it into good shape
0:35:53 > 0:35:56could set the new owner back around £35,000.
0:35:56 > 0:35:58So what could it sell for?
0:35:58 > 0:36:01Once renovated, I believe this property could achieve
0:36:01 > 0:36:05between £45,000 and £50,000 in the current sales market.
0:36:05 > 0:36:07And how do the rental figures sound?
0:36:07 > 0:36:08Rental-wise,
0:36:08 > 0:36:13I believe this property could achieve £350 per calendar month.
0:36:13 > 0:36:16This is an easy one for me. A bit of a no-brainer.
0:36:16 > 0:36:20If you can get it for anywhere near the guide price of £28,000,
0:36:20 > 0:36:22a solid structure like this with little to do
0:36:22 > 0:36:24could be a great investment.
0:36:24 > 0:36:26Let's see who agreed when it went under the hammer.
0:36:26 > 0:36:28Lot number 23 is guided
0:36:28 > 0:36:30at £28,000 for this one.
0:36:30 > 0:36:34In the room at £20,000. Who...? 21 anywhere?
0:36:34 > 0:36:38At £20,000. At 20... 21. 22.
0:36:38 > 0:36:4022. 23.
0:36:40 > 0:36:4224. 25.
0:36:42 > 0:36:46At 25. 26? 26.
0:36:46 > 0:36:4827. 28.
0:36:48 > 0:36:5029. 29. 29½?
0:36:50 > 0:36:5129½.
0:36:51 > 0:36:5330. At 30.
0:36:53 > 0:36:55500, sir? 500.
0:36:55 > 0:36:5631? 31.
0:36:56 > 0:36:59£31,500.
0:36:59 > 0:37:0132.
0:37:01 > 0:37:0332. Are you sure this time?
0:37:03 > 0:37:06500? At £32,000?
0:37:06 > 0:37:10No. At £32,000 once. £32,000 twice.
0:37:10 > 0:37:14Third and the last time I'm asking at £32,000.
0:37:14 > 0:37:17- GAVEL BANGS - Got it. Well done. 451.
0:37:18 > 0:37:21And the successful bidder, getting the lot for £32,000,
0:37:21 > 0:37:23was Jeremy and his wife Nicky.
0:37:25 > 0:37:29'What a great price and a great buy for Jeremy, who's actually from Essex
0:37:29 > 0:37:33'and has chosen Gainsborough to start a property developing career.
0:37:33 > 0:37:36'I met Jeremy back at the house to find out his plans.'
0:37:36 > 0:37:39- Nice to meet you, Jeremy. Congratulations.- Thank you.
0:37:39 > 0:37:41Tell me about the auction experience. How was it?
0:37:41 > 0:37:44It was a good experience. We did a lot of research before we went
0:37:44 > 0:37:47and the prices were about what we thought they would be.
0:37:47 > 0:37:50Tell me why have you decided to go into the property world.
0:37:50 > 0:37:54- Well, the reason was, er, I worked for a large IT company...- Mm-hm?
0:37:54 > 0:37:57..and unfortunately got made redundant, so I thought
0:37:57 > 0:38:02I'd use that redundancy money to get my first property.
0:38:02 > 0:38:06So, now you're buying property, are you renting it out or selling it?
0:38:06 > 0:38:11Right, the initial plan is to do perhaps two or three properties,
0:38:11 > 0:38:14probably in the North, because they're cheaper to buy,
0:38:14 > 0:38:16um, then gradually move south.
0:38:17 > 0:38:19'Jeremy has chosen to start in the North,
0:38:19 > 0:38:22'because buying is cheaper than in the South.
0:38:22 > 0:38:25'But it could mean tighter profit margins when he sells,
0:38:25 > 0:38:27'so why this property?'
0:38:27 > 0:38:30Well, we looked at several on the viewing days
0:38:30 > 0:38:33and we split them roughly into two camps -
0:38:33 > 0:38:37those that we felt were a rentable property
0:38:37 > 0:38:41- and those we thought we could actually sell on, or flip.- Mm-hm.
0:38:41 > 0:38:46And this was possibly in the best location of the ones we saw.
0:38:46 > 0:38:48Now, if you hadn't got this one in particular,
0:38:48 > 0:38:50- would you have maybe gone for one of the others?- Yes.
0:38:50 > 0:38:55- Yes, there was two definites... - Oh?- ..that we were after.
0:38:55 > 0:38:57But this one, when we bid on it,
0:38:57 > 0:39:00we were bang on target, so we knew it was the right one.
0:39:02 > 0:39:07# You're the right one
0:39:07 > 0:39:12# Yes, the right one
0:39:12 > 0:39:21# I have never been so sure of anyone before... #
0:39:24 > 0:39:26'In fact, without further ado,
0:39:26 > 0:39:29'Jeremy's already got to work on this place and it sounds like
0:39:29 > 0:39:32'it's going to be home sweet home for the next few weeks.'
0:39:32 > 0:39:35- Initially, I've repaired some of the outside areas.- Mm-hm.
0:39:35 > 0:39:37There was a gas meter hanging off the wall,
0:39:37 > 0:39:41so I've had to rebuild a wall, put the gas meter back on.
0:39:41 > 0:39:44Fuel services back on, so it's a workable house.
0:39:44 > 0:39:47And before the winter closes in, I hope to get
0:39:47 > 0:39:50the outside areas complete and then start decorating inside.
0:39:50 > 0:39:52- We'll be keeping the kitchen.- OK.
0:39:52 > 0:39:54- The kitchen looks quite serviceable.- Mm-hm.
0:39:54 > 0:39:56The bathroom we'll probably replace.
0:39:56 > 0:40:00Initially, we thought we'd keep it, but having looked at it again,
0:40:00 > 0:40:02- I think we'll update that, put a shower in maybe.- OK.
0:40:02 > 0:40:04Who'll do that for you? Is it all down to you,
0:40:04 > 0:40:06on your shoulders, or have you got friends?
0:40:06 > 0:40:07That is down to me.
0:40:07 > 0:40:09- All of it?!- All of it.
0:40:09 > 0:40:13I'll be actually living on site, cos I'm not from Gainsborough.
0:40:13 > 0:40:16I'm actually from Essex, so it's a 2½ hour drive, so, er, I'll be
0:40:16 > 0:40:20living on site during the week to keep the costs down there as well.
0:40:20 > 0:40:21That's a bit of a trek.
0:40:21 > 0:40:252½ hours travelling backwards and forwards is five hours a day.
0:40:25 > 0:40:27- It's not really feasible, so...- No.
0:40:27 > 0:40:30- It's a bit too much, that, isn't it? - It seems pointless paying
0:40:30 > 0:40:33for a hotel when you've actually got a house and could just camp in it.
0:40:34 > 0:40:37'Well, it won't get a five-star rating, but it makes sense.
0:40:37 > 0:40:39'Less time spent on the road commuting
0:40:39 > 0:40:42'means more time getting this place ready to sell on.
0:40:42 > 0:40:46'Jeremy will be going back to Essex for the weekends, but how long
0:40:46 > 0:40:49'does he reckon he'll have to put up with kipping on the camp bed?'
0:40:49 > 0:40:52I think between eight and 12 weeks.
0:40:52 > 0:40:54- But as we're now entering the winter period...- Yes.
0:40:54 > 0:40:58..it depends on the weather, really.
0:40:59 > 0:41:02'It's not the most comfortable solution for that period of time,
0:41:02 > 0:41:04'but it does make financial sense.
0:41:04 > 0:41:06'Jeremy was at the auction with his wife Nicky
0:41:06 > 0:41:09'and she works in medical research.
0:41:09 > 0:41:12'So is she going to be getting her camping gear out too?'
0:41:14 > 0:41:16She's paying for the food bills and things
0:41:16 > 0:41:18while we get the first one done.
0:41:18 > 0:41:20What budget are you going to try and keep all that within?
0:41:20 > 0:41:24Right, I'm going to try and do it for between probably
0:41:24 > 0:41:29- £5,000 and £7,000.- Small budget. - I think that's possible.- Really?
0:41:29 > 0:41:33Um, I've costed everything from bathrooms to kitchens, um,
0:41:33 > 0:41:37and actually gone into fairly fine detail and I think that is possible.
0:41:38 > 0:41:40'Jeremy does have to keep his costs down on this
0:41:40 > 0:41:42'if he is to make a profit.
0:41:42 > 0:41:45'And not replacing big expensive items like the kitchen will
0:41:45 > 0:41:49'certainly save the pennies and, given he's doing all that graft,
0:41:49 > 0:41:51'that sounds realistic.
0:41:51 > 0:41:55'Jeremy, it would appear, is prepared to make sacrifices
0:41:55 > 0:42:00'beyond just camping in the cold to get his property portfolio underway.'
0:42:00 > 0:42:02I've got an interest in classic cars
0:42:02 > 0:42:05and I've currently got two vintage cars.
0:42:05 > 0:42:09A Flatnose Morris and the other one's a 1937 Morris Eight.
0:42:09 > 0:42:11- OK.- So a little light car.
0:42:11 > 0:42:17- We may have to sell one...- OK.- ..to assist the, er, property buying,
0:42:17 > 0:42:23um, so, as...as an investment, we possibly may have to sell one.
0:42:23 > 0:42:25- Is that going to hurt slightly? - Er, just a lot, yeah.- Yes.
0:42:25 > 0:42:28- Whose idea was that? Let me think!- Um...
0:42:28 > 0:42:31- Yeah, it was the wife's. - HE LAUGHS: It was your wife!- Yeah.
0:42:31 > 0:42:33- Obviously!- But it makes sense. It makes sense.
0:42:33 > 0:42:35You seem to know what you're doing. All the best.
0:42:35 > 0:42:36- Thank you.- Good luck, sir.
0:42:36 > 0:42:38- It'll be a success, well done. - Thank you very much.
0:42:40 > 0:42:41How cool is Jeremy?
0:42:41 > 0:42:43He knows what he wants to do, he knows how he's going to do it
0:42:43 > 0:42:47and he's got his wife on the phone to pass on the boss's instructions.
0:42:47 > 0:42:48He's going to camp out here
0:42:48 > 0:42:51until he gets this place exactly how he wants it.
0:42:51 > 0:42:55Now, all the research he's done is going to pay off. I can just feel it.
0:42:55 > 0:42:57We'll find out how he gets on later in the programme.
0:43:01 > 0:43:03Well, we've waved one property off into the sunset,
0:43:03 > 0:43:05but what about the other two?
0:43:05 > 0:43:07Yeah, for some people, well, it's just a walk in the park,
0:43:07 > 0:43:10but for others - Mm-mm! - it can be rocky road.
0:43:10 > 0:43:13I think it's time to find out how they got on.
0:43:17 > 0:43:18Earlier in the show,
0:43:18 > 0:43:21I went to see a one-bed flat in the area of Leyton in London.
0:43:22 > 0:43:25It had some great original features,
0:43:25 > 0:43:27like these shutters and this cornicing.
0:43:27 > 0:43:31But it also had a layout which needed reworking
0:43:31 > 0:43:33and a complex lease situation,
0:43:33 > 0:43:37where the buyer would take a share of the freehold.
0:43:37 > 0:43:42And that buyer was Miles, who bought it after auction for 187,000.
0:43:43 > 0:43:45And while he had done some projects before,
0:43:45 > 0:43:49this was his first major solo project.
0:43:49 > 0:43:53At least he didn't have much else going on in his life, right?
0:43:53 > 0:43:54Ha! Wrong!
0:43:54 > 0:43:56And I know you've just had a little baby!
0:43:56 > 0:44:00- Yeah, we've just had a little kid called Brave.- Aw! And how old is he?
0:44:00 > 0:44:04- He's five weeks.- Wow! So you're a new daddy?- Yeah.- You've got a new flat.
0:44:04 > 0:44:05Can't you see the bags under my eyes?
0:44:05 > 0:44:08- How hard is it being a dad? - It's all right.
0:44:08 > 0:44:11Yeah, it's all right, we're loving it. It's a real bliss time of just
0:44:11 > 0:44:14- being together and the baby...- Aw! - ..and a bit of sleep deprivation.
0:44:16 > 0:44:19But it wasn't going to be baby steps for Miles!
0:44:19 > 0:44:21He had big plans for the layout.
0:44:22 > 0:44:26And four months later, we went back to see how the new dad was coping
0:44:26 > 0:44:30with all the changes in his life, and what he'd done to the flat.
0:44:32 > 0:44:40# So-oh-oh, if you're tired of the same old story
0:44:40 > 0:44:44# Oh, baby, turn some pages!
0:44:45 > 0:44:49# I will be here when you are ready
0:44:49 > 0:44:53# To roll with the changes, baby! #
0:44:54 > 0:44:56So, in here is where probably
0:44:56 > 0:44:59the biggest change and the most work has gone on in the flat.
0:44:59 > 0:45:02Along this line here was where a wall was
0:45:02 > 0:45:04and this section here was the bathroom.
0:45:04 > 0:45:06We took all that out and now it's the kitchen.
0:45:06 > 0:45:10And there was a door here as well and we sort of plastered that up.
0:45:10 > 0:45:11And I think it's good, it works.
0:45:11 > 0:45:14There's, like, space for a fridge, a built-in washing machine...
0:45:14 > 0:45:17It just seems like it suits the sort of person who would buy this flat
0:45:17 > 0:45:20much more than how it was before, all sectioned off.
0:45:20 > 0:45:23- # Keep on rollin' - Oh, yeah
0:45:23 > 0:45:28- # Keep on rollin'- Ooh!- Ooh, ooh! - Roll with the changes... #
0:45:28 > 0:45:31Hmm, now I did have my doubts about Miles' plan
0:45:31 > 0:45:35of bringing the kitchen in here, but it really does work.
0:45:35 > 0:45:37So what else has he done?
0:45:37 > 0:45:40On the other side of the wall was a bathroom, er, so we just got rid
0:45:40 > 0:45:43of that, moved the bathroom to the next room, where the kitchen was,
0:45:43 > 0:45:48and now the kitchen is in here, so it's like a lounge-diner.
0:45:48 > 0:45:50Miles has done a fair amount of reconfiguring here,
0:45:50 > 0:45:54so the fact that all the neighbours share the lease means he was able
0:45:54 > 0:45:57to get agreement to the changes without any hassle.
0:45:57 > 0:46:00So, how does that shared lease work?
0:46:00 > 0:46:04You still have a lease, but the lease is amongst the three flats
0:46:04 > 0:46:08which are in the building, so we all re-lease it to ourselves.
0:46:08 > 0:46:11If we want to renew it, then it's just a matter of going to solicitors
0:46:11 > 0:46:12and writing to Land Registry.
0:46:12 > 0:46:14You don't have to go through guessing
0:46:14 > 0:46:17how much it is to renew the lease, because you're paying each other
0:46:17 > 0:46:19and it's a little circle. That worked well.
0:46:19 > 0:46:21Everybody was really chilled and we did, like,
0:46:21 > 0:46:24a little bit of work to the outside of the house and I got
0:46:24 > 0:46:28a few quotes and then ended up doing the work myself, with a builder mate.
0:46:28 > 0:46:30It was really easy being a share of freehold,
0:46:30 > 0:46:31I'm glad it was like that and not leasehold.
0:46:33 > 0:46:35Well, glad that all worked out OK.
0:46:35 > 0:46:37But how is fatherhood working out for him?
0:46:37 > 0:46:41I mean, when we first filmed, I was so tired, even on that day,
0:46:41 > 0:46:44I don't know if I managed to hide it, but it's got so much better
0:46:44 > 0:46:46as time's gone on, just that he's slept a bit more
0:46:46 > 0:46:48and I've got a bit more used to things
0:46:48 > 0:46:52and the best thing about doing this sort of work is that,
0:46:52 > 0:46:55when he has his injections, or Becks just needs my help,
0:46:55 > 0:46:58I want to be there a lot and be, like, a really around dad,
0:46:58 > 0:47:00so, you know, even days like today,
0:47:00 > 0:47:04I'm going to go home at lunchtime and just be there in the afternoon.
0:47:04 > 0:47:08And somehow, despite juggling this renovation and a new baby,
0:47:08 > 0:47:10Miles will be finished on schedule.
0:47:10 > 0:47:14But will he finish under his 12 grand budget?
0:47:15 > 0:47:18We've definitely gone under 12. I haven't totted everything up yet.
0:47:18 > 0:47:21I think I just need to pay for the carpet, that's like 500 quid,
0:47:21 > 0:47:23so easily under ten and I think
0:47:23 > 0:47:27I've spent, like, a bit of money that I haven't collected receipts for,
0:47:27 > 0:47:30so, like, 10,000 is pretty much how much we've spent.
0:47:30 > 0:47:31We're definitely going to sell it.
0:47:31 > 0:47:35I think we've added a little bit of value, um, enough anyway to
0:47:35 > 0:47:37make it worth my while working on for the last couple of months.
0:47:37 > 0:47:40And as long as it's an all right little profit for sort of
0:47:40 > 0:47:43three months' work, then I'm pretty happy with that.
0:47:44 > 0:47:48Time to find out how "all right" that profit might be, Miles.
0:47:48 > 0:47:51We've asked along two local estate agents for their opinions.
0:47:51 > 0:47:54So let's start with the agent who saw it the first time.
0:47:56 > 0:47:57It's fantastic.
0:47:57 > 0:48:01It's bright, it's light, it's airy, it's a complete transformation.
0:48:01 > 0:48:04Changed the area there to make a bathroom, with a small utility area,
0:48:04 > 0:48:06and they've put the galley kitchen into the living-dining area,
0:48:06 > 0:48:09so really you've got an all-in-one encompassing property.
0:48:09 > 0:48:11This is the first time I've seen the property.
0:48:11 > 0:48:16I believe it to have been done to quite a high standard. I think
0:48:16 > 0:48:21that the alterations that he's made within the property have benefited,
0:48:21 > 0:48:25because you've opened up this front bit to the bay window
0:48:25 > 0:48:28and the bathroom is now further back in the property,
0:48:28 > 0:48:31en-suite to the bedroom, really.
0:48:31 > 0:48:34So a thumbs up from the agents on the reconfiguration.
0:48:34 > 0:48:36But what about his profit?
0:48:36 > 0:48:39Miles will have spent a total of 197,000
0:48:39 > 0:48:42upon completion of the property.
0:48:42 > 0:48:45He's keen to sell, but could it be a strong rental prospect?
0:48:48 > 0:48:53I believe, as a rental property, um, because of the area that it's in,
0:48:53 > 0:48:58you would be able to achieve £950-£1,000 per calendar month.
0:48:58 > 0:49:00Well, it's a very popular area around here,
0:49:00 > 0:49:03a lot of professionals live around the area and are moving in.
0:49:03 > 0:49:05I think a couple would like to take this and they would probably
0:49:05 > 0:49:09be prepared to pay something like £1,000 per calendar month.
0:49:09 > 0:49:12Happy with that. That's fine, that's what I thought it would be.
0:49:12 > 0:49:14That would mean a 6% yield.
0:49:14 > 0:49:16Certainly not an attractive enough prospect
0:49:16 > 0:49:19for Miles to change his planned course - to sell.
0:49:21 > 0:49:24I think you'd put it on at around about £250,000
0:49:24 > 0:49:26and hope to accept something close to that figure.
0:49:26 > 0:49:30I would put this property on the market as it is today
0:49:30 > 0:49:35for £240,000-£245,000.
0:49:35 > 0:49:37Yeah, that's pretty all right.
0:49:37 > 0:49:39I think that's kind of around the price we were thinking.
0:49:39 > 0:49:41We've had an offer at 260 already.
0:49:41 > 0:49:44But that was before the carpets were down, it was all finished,
0:49:44 > 0:49:48so what we're thinking is just putting it on at 260,
0:49:48 > 0:49:52offers in the region of 260, and see if we get, like, 265.
0:49:53 > 0:49:56The lowest agent valuation would give Miles
0:49:56 > 0:49:59a pre-tax profit of £43,000,
0:49:59 > 0:50:03while his hoped-for £265,000
0:50:03 > 0:50:08would mean a pre-tax profit of 68,000!
0:50:08 > 0:50:10All right for three months' work.
0:50:11 > 0:50:14# All right now!
0:50:14 > 0:50:19# Baby, it's all right now! #
0:50:20 > 0:50:22So, having made a success of this one,
0:50:22 > 0:50:25and now that he's getting some sleep, what words of advice
0:50:25 > 0:50:29would he give to any new parent with a penchant for property?
0:50:29 > 0:50:31I really like being self-employed.
0:50:31 > 0:50:34I feel like it's the best way to manage work-life balance,
0:50:34 > 0:50:39so if you can do this sort of stuff, go for it, but don't compete with me.
0:50:42 > 0:50:45Earlier in the show, I was in Gainsborough in Lincolnshire
0:50:45 > 0:50:49to see a two-bed mid-terrace guided at 28 grand.
0:50:52 > 0:50:55Aside from the crumbling plasterwork and the usual conundrum
0:50:55 > 0:50:58of a downstairs bathroom, everything was in good nick.
0:51:00 > 0:51:02This seems OK. I'm quite impressed.
0:51:03 > 0:51:06And upstairs, the same story - everything looking good.
0:51:07 > 0:51:09Well, sort of.
0:51:09 > 0:51:12Although at the back of the long garden was a railway line,
0:51:12 > 0:51:15which might put some people off.
0:51:15 > 0:51:18'But with the low guide price and potentially little work...'
0:51:18 > 0:51:20Now, if you get something like this,
0:51:20 > 0:51:24you are on the right lines to making a decent amount of profit.
0:51:24 > 0:51:27'Potential profit was one of the reasons
0:51:27 > 0:51:30'Jeremy made a career switch to property.
0:51:31 > 0:51:34'The first property set him back 32 grand at auction,
0:51:34 > 0:51:38'but his future portfolio was possibly going to be funded
0:51:38 > 0:51:40'in a way that sounded a bit sore.'
0:51:40 > 0:51:42I've got an interest in classic cars
0:51:42 > 0:51:45and I've currently got two vintage cars.
0:51:45 > 0:51:50- We may have to sell one...- OK.- ..to assist the, er, property buying.
0:51:50 > 0:51:53- Is that going to hurt slightly? - Er, just a lot, yeah.- Yes!
0:51:53 > 0:51:55- Whose idea was that? Let me think!- Um...
0:51:55 > 0:51:59- Yeah, it was the wife's. - HE LAUGHS: It was your wife!- Yeah.
0:51:59 > 0:52:00'So, four months on,
0:52:00 > 0:52:04'has Jeremy restored his classic two up, two down
0:52:04 > 0:52:07'or were there some surprises underneath the hood?'
0:52:32 > 0:52:34This house needed a real refresh
0:52:34 > 0:52:38and Jeremy certainly has achieved that, and some.
0:52:38 > 0:52:39So what work has been done?
0:52:42 > 0:52:45The work that's been done largely is plastering.
0:52:45 > 0:52:46That was quite a big job.
0:52:46 > 0:52:48It's taken a lot of time.
0:52:48 > 0:52:51Um, we've had the ceilings in the kitchen
0:52:51 > 0:52:53and the bathroom replastered.
0:52:53 > 0:52:59I think the... We've changed all the doors, replaced the bathroom,
0:52:59 > 0:53:02the kitchen, largely, we've left alone.
0:53:02 > 0:53:05We've retiled and put the new flooring in.
0:53:06 > 0:53:09So, in general, the actual job's gone fairly smoothly.
0:53:11 > 0:53:13'But while Jeremy did all his research before auction,
0:53:13 > 0:53:16'there was an unexpected surprise.
0:53:16 > 0:53:19'If these walls could talk, they'd be asking for help.'
0:53:21 > 0:53:25The plasterer, um, climbed up, er, to the top and
0:53:25 > 0:53:29when he pressed his hand against the wall, he found that the wall
0:53:29 > 0:53:33moved by about half an inch or, say, two centimetres.
0:53:33 > 0:53:35But we found out that, er,
0:53:35 > 0:53:40the plasterboard wasn't actually fixed to the party wall behind it.
0:53:40 > 0:53:45So what we've had to do is actually pin all the way along to...
0:53:45 > 0:53:48to actually hold the wall back in its correct position
0:53:48 > 0:53:50and make it a firm wall again.
0:53:52 > 0:53:54# And the walls came down! #
0:53:57 > 0:54:00'And he took steps to prevent damp in the living room.'
0:54:00 > 0:54:04We took out a very ugly little electric fire that was there
0:54:04 > 0:54:09and we vented the...the chimney,
0:54:09 > 0:54:12because that was showing slight signs of damp,
0:54:12 > 0:54:15but it was simply because there was no ventilation.
0:54:15 > 0:54:21And over in this corner, where previously we found a large crack,
0:54:21 > 0:54:24that turned out to be the render behind the plaster.
0:54:24 > 0:54:28The render had actually dried out too quickly and pulled the plaster
0:54:28 > 0:54:32and render away from the wall, so that's been re-rendered
0:54:32 > 0:54:36and replastered and it's now good.
0:54:37 > 0:54:39'Despite the unexpected work,
0:54:39 > 0:54:41'Jeremy finished right on his four-month timescale
0:54:41 > 0:54:44'and kept a meticulous eye on his budget.'
0:54:46 > 0:54:50We're about £1,370 under budget.
0:54:51 > 0:54:53Finished to schedule and every penny counted,
0:54:53 > 0:54:56but can that money spent become more money made?
0:54:58 > 0:55:00Two local property experts can tell us,
0:55:00 > 0:55:03starting with the agent who saw it the first time.
0:55:04 > 0:55:06In general, the standard of finish is very good.
0:55:06 > 0:55:08I'm impressed with what the seller's done.
0:55:08 > 0:55:11Nice flooring, nice decor throughout and brand-new bathroom suite,
0:55:11 > 0:55:14which will help the saleability of the property.
0:55:14 > 0:55:16It's been modernised to a good standard throughout
0:55:16 > 0:55:20and everything has been taken care of, giving the new owners
0:55:20 > 0:55:22the benefit of a finished property.
0:55:22 > 0:55:25It would appeal to the sales market and to the rental market.
0:55:25 > 0:55:28The market's strong for both sales and lettings locally.
0:55:28 > 0:55:30I would feel that the lettings market is
0:55:30 > 0:55:32slightly stronger than the sales market.
0:55:33 > 0:55:37Food for thought, as Jeremy was open to either renting or selling,
0:55:37 > 0:55:39depending on the price.
0:55:42 > 0:55:44Jeremy paid £32,000 for the house
0:55:44 > 0:55:49and we'll round up his renovation costs to £5,700, which means
0:55:49 > 0:55:55a grand total of 37,700, so how has his first investment fared?
0:55:55 > 0:56:00I would market this property, in the current market, for £50,000.
0:56:00 > 0:56:02If I was to put the property on the rental market,
0:56:02 > 0:56:05I would look to achieve a return of £375 a calendar month.
0:56:05 > 0:56:09I believe this property should achieve £370 per calendar month.
0:56:09 > 0:56:11The area is popular for first-time buyers
0:56:11 > 0:56:14with property values being lower than nearby areas.
0:56:14 > 0:56:17I would recommend putting the property on the market for £50,000.
0:56:21 > 0:56:22The agents agree,
0:56:22 > 0:56:29and £50,000 at resale would net a £12,300 pre-tax profit,
0:56:29 > 0:56:31while £370 per calendar month
0:56:31 > 0:56:37would result in a very impressive 11.9% yield.
0:56:37 > 0:56:41A rental of £375 is exactly what I was expecting.
0:56:41 > 0:56:44375 would be very good.
0:56:44 > 0:56:49A valuation of £50,000 - Eugh! - is a little bit low!
0:56:49 > 0:56:52Um, to cover the work that we've done, um,
0:56:52 > 0:56:56adding that to the purchase price, I would expect that to be at least
0:56:56 > 0:57:03£5,000 more and I was hoping for a valuation of between 55 and 60,000.
0:57:03 > 0:57:07We'll try it on the market a little bit higher than those valuations
0:57:07 > 0:57:11and, if we don't get anywhere with that within perhaps two months,
0:57:11 > 0:57:13well, we'll probably look to renting
0:57:13 > 0:57:17and trying to sell it on with tenants actually in place.
0:57:19 > 0:57:22Buy-to-let investors love tenants in situ,
0:57:22 > 0:57:24particularly with that high yield,
0:57:24 > 0:57:29so Jeremy may not have to sell his vintage car quite yet and he knows
0:57:29 > 0:57:32what it's like to live here - he did it while he was doing the project.
0:57:34 > 0:57:37I tended to spend probably a fortnight on site,
0:57:37 > 0:57:41living on a put-you-up type bed, which is very uncomfortable.
0:57:41 > 0:57:45It's project planning all the way and it tends to take your life over.
0:57:45 > 0:57:50I think my wife will be very happy that, er, I'm back at home now.
0:57:50 > 0:57:53And, in fact, Jeremy's wife might be happier still
0:57:53 > 0:57:56as, two days after filming, he sold the house,
0:57:56 > 0:58:01making himself 13 grand profit after costs and legal fees.
0:58:01 > 0:58:05I've got a feeling we'll be seeing this first-time property developer
0:58:05 > 0:58:06on Homes Under The Hammer again.
0:58:09 > 0:58:11Well, that's it for today's show.
0:58:11 > 0:58:14We'll see you next time with more stories from the auction rooms.
0:58:14 > 0:58:18- See you then for more Homes Under The Hammer.- From us, it's a goodbye.