0:00:02 > 0:00:03Welcome to the show!
0:00:03 > 0:00:05Now, it's a fast-moving property market
0:00:05 > 0:00:07so when's the best time to jump aboard?
0:00:07 > 0:00:09And where's the best place to start?
0:00:09 > 0:00:13Yes, maybe you should consider buying your home under the hammer.
0:00:39 > 0:00:41Well, it's not always easy to tell at first glance
0:00:41 > 0:00:44if the property is going to make you any profit.
0:00:44 > 0:00:46There's always one way to know for sure -
0:00:46 > 0:00:49do as much prep as you possibly can and then make a sensible decision.
0:00:49 > 0:00:53So, is that what the buyers on today's show did? Let's find out.
0:00:56 > 0:00:59This one-bed London flat has a great selling point.
0:00:59 > 0:01:01A real bonus,
0:01:01 > 0:01:03through this door, a roof terrace.
0:01:05 > 0:01:07And the buyer of this Telford flat
0:01:07 > 0:01:10has a novel way of stretching his budget.
0:01:10 > 0:01:13Tonight, I move me camp bed in and we'll doss here
0:01:13 > 0:01:14for three nights a week.
0:01:16 > 0:01:21And in Derby, I discover a Homes Under The Hammer rarity.
0:01:21 > 0:01:23It's all just a bit shiny and lovely.
0:01:23 > 0:01:25Do you think we've walked in on the reveal?
0:01:27 > 0:01:29All these properties have been sold at auction.
0:01:29 > 0:01:32We'll find out who bought them and what they paid for them
0:01:32 > 0:01:34when they went under the hammer.
0:01:34 > 0:01:35Well done.
0:01:38 > 0:01:40This is Camberwell in south London.
0:01:40 > 0:01:43Bordered by East Dulwich, Peckham and Herne Hill,
0:01:43 > 0:01:47it lies just three miles south of the centre of the city.
0:01:49 > 0:01:52Well, Camberwell is very well located.
0:01:52 > 0:01:55It's certainly got its fair share of transport links,
0:01:55 > 0:01:57not to mention endless buses.
0:01:57 > 0:02:01The property I'm here to see, then, starts off pretty good.
0:02:01 > 0:02:02Good location.
0:02:02 > 0:02:09£215,000-plus was the guide price, a two-bedroom flat through this door.
0:02:09 > 0:02:12One possible downside is that the flat is above
0:02:12 > 0:02:16a commercial property - and a restaurant, at that.
0:02:16 > 0:02:18But it is tucked away to the rear of the building
0:02:18 > 0:02:21and comes with a 125-year lease.
0:02:21 > 0:02:24Well, the first thing to say is you have to travel a long way
0:02:24 > 0:02:26to even get to the flat behind the road.
0:02:26 > 0:02:29This corridor here, which is a communal area,
0:02:29 > 0:02:33and then into another corridor which is owned by the flat itself.
0:02:33 > 0:02:35At least this is reasonably bright and light.
0:02:35 > 0:02:39But it does throw up the whole issue of any work you're doing here,
0:02:39 > 0:02:41you're going to have to bring any materials you need in
0:02:41 > 0:02:44and any rubbish out, which is definitely something to consider.
0:02:44 > 0:02:46But what have we got?
0:02:46 > 0:02:48When you finally get into the main body of the flat,
0:02:48 > 0:02:52there's a half-decent-sized bathroom there, which is quite good.
0:02:52 > 0:02:56And, then, a really lovely surprise.
0:02:56 > 0:02:59Look at this. Wasn't expecting that.
0:02:59 > 0:03:03A really nice-sized living area.
0:03:05 > 0:03:08You've got a kitchen off it there. It's not a bad size.
0:03:08 > 0:03:11It could do with some new units but apart from that, it, yeah,
0:03:11 > 0:03:15it's pretty decent. Something which is a bit more serious is this.
0:03:16 > 0:03:21Signs of damp. Yeah, that's going to need a bit of sorting out.
0:03:21 > 0:03:25But then another little area which is just really lovely is this
0:03:25 > 0:03:27bit here. It's kind of like a sort of open area.
0:03:27 > 0:03:30You've got these roof windows up there throwing natural light
0:03:30 > 0:03:33into this area. It's really nice, you can almost imagine
0:03:33 > 0:03:36a Christmas tree, a huge one, here at Christmas, which would be great.
0:03:36 > 0:03:40But it does throw up an interesting point in that you've got light
0:03:40 > 0:03:44coming in from there, but there's no windows on the sides.
0:03:45 > 0:03:48So, you're going to have to think very carefully about your lighting.
0:03:48 > 0:03:49But apart from that...
0:03:50 > 0:03:52..it's great.
0:03:54 > 0:03:57I know that not everyone will like the no windows thing,
0:03:57 > 0:04:00it could feel a bit claustrophobic for some.
0:04:00 > 0:04:04But I think clever lighting could make this space something rather nice.
0:04:05 > 0:04:08# So light up my room
0:04:09 > 0:04:13# My room. #
0:04:14 > 0:04:17And leading off the living area,
0:04:17 > 0:04:19a staircase takes you up to the split level.
0:04:21 > 0:04:24So, upstairs, here, two pretty good-sized bedrooms.
0:04:24 > 0:04:28A really big one on that side and a slightly smaller one here.
0:04:28 > 0:04:30But, a real bonus,
0:04:30 > 0:04:34through this door out onto a little bit of a roof terrace.
0:04:34 > 0:04:37Now, at the moment it's just got the kind of roofing materials.
0:04:37 > 0:04:40You'd really want to put some kind of a fence around there
0:04:40 > 0:04:44to make it safe and maybe some kind of a decking on there.
0:04:44 > 0:04:46But, of course, outside space in London properties
0:04:46 > 0:04:50is an absolute premium so the fact that you've got the option there...
0:04:50 > 0:04:53Oh, and also through a door through that bedroom onto another
0:04:53 > 0:04:55roof terrace, is a real big bonus.
0:04:56 > 0:05:00A few words of caution, though. You would need to check the deeds.
0:05:00 > 0:05:03Just because there are doors, you can't assume you have
0:05:03 > 0:05:05the right to use them.
0:05:05 > 0:05:07Your freeholder might have a say in it, too,
0:05:07 > 0:05:10and, of course, with heights like this, you can't mess about,
0:05:10 > 0:05:13so sensible safety measures have to be thought about
0:05:13 > 0:05:14before you step out.
0:05:21 > 0:05:24Now, my guess is that the flat's actually been built onto
0:05:24 > 0:05:27an area that was probably, at some stage, just almost
0:05:27 > 0:05:32like a courtyard or a rear area to the shops along the road here.
0:05:32 > 0:05:34And it works, actually, quite well.
0:05:34 > 0:05:40The only issue you might have is the proximity to commercial buildings
0:05:40 > 0:05:43cos, basically, mortgage lenders do not like properties
0:05:43 > 0:05:47that are in close proximity or adjoined to commercial properties.
0:05:47 > 0:05:49So, really, just get that checked out
0:05:49 > 0:05:53and make sure that the mortgage adviser or the mortgage company
0:05:53 > 0:05:57knows exactly what you're intending buying and what is very close to it.
0:05:57 > 0:06:03# He's much too close for comfort now. #
0:06:03 > 0:06:07Any mortgage provider may well be concerned about security,
0:06:07 > 0:06:11fire risk and the general marketability of your property
0:06:11 > 0:06:13when it comes to selling on.
0:06:13 > 0:06:17But is the flat's proximity to commercial premises
0:06:17 > 0:06:20a concern to a local estate agent?
0:06:20 > 0:06:25# She's much too close for comfort
0:06:25 > 0:06:31# Now. #
0:06:31 > 0:06:34My first thoughts with flats above shops is you've always got
0:06:34 > 0:06:35to be a little bit careful,
0:06:35 > 0:06:38but this has got to be one of the best ones I've seen cos,
0:06:38 > 0:06:39as you come in downstairs,
0:06:39 > 0:06:42you've got a reception on the ground floor, like you would a house,
0:06:42 > 0:06:45then stairs up to a second floor with the two bedrooms.
0:06:45 > 0:06:46Yeah, I really like it.
0:06:46 > 0:06:49OK, but what would he do to maximise the flat's potential?
0:06:51 > 0:06:53If this was me coming in, I mean,
0:06:53 > 0:06:56other than redecorate it to my taste, not a lot.
0:06:56 > 0:06:57The bathroom, the kitchen are not bad
0:06:57 > 0:07:01though they could be updated a lot more, once again to taste.
0:07:01 > 0:07:03I would just get the damp sorted out and then paint
0:07:03 > 0:07:05and then take my time to lay out, live in the property,
0:07:05 > 0:07:08get a feel for it and then decorate it appropriately.
0:07:09 > 0:07:12This flat was guided at £215,000.
0:07:12 > 0:07:14If the work the agent suggests was done,
0:07:14 > 0:07:17what could it fetch on the open market?
0:07:17 > 0:07:20Once this has been done up, I believe the sale value
0:07:20 > 0:07:22would be around the £270,000 mark.
0:07:22 > 0:07:25And how much could it generate on the rental market?
0:07:25 > 0:07:27Rental area-wise, it's very, very good.
0:07:27 > 0:07:28Per calendar month for a two-bed,
0:07:28 > 0:07:31you're looking around £1,200 per calendar month.
0:07:34 > 0:07:36Bit of a funny one, this, isn't it?
0:07:36 > 0:07:40Cos the general location of the flat here in Camberwell is really good.
0:07:40 > 0:07:43But the location of the flat itself behind these commercial
0:07:43 > 0:07:45buildings could give it an issue
0:07:45 > 0:07:47when it comes to getting that all-important mortgage.
0:07:47 > 0:07:50It needs a bit of work and there is that damp issue.
0:07:50 > 0:07:54Having said all that, it's a really nice flat with a really good feel
0:07:54 > 0:07:57so I'm sure it was a popular lot when it went under the hammer.
0:08:01 > 0:08:02Lot 95.
0:08:03 > 0:08:06Two-bedroom split-level flat.
0:08:06 > 0:08:09Well located in the centre of Camberwell. 210, anywhere?
0:08:09 > 0:08:12You bidding? Thank you. 210 I've got.
0:08:13 > 0:08:16How much? 211? 211, thank you.
0:08:16 > 0:08:19212? 212. 213?
0:08:20 > 0:08:23214? Yeah, 214, 215,
0:08:23 > 0:08:27216, 217, 218.
0:08:28 > 0:08:32219, new place. More competition.
0:08:32 > 0:08:35220, 221,
0:08:35 > 0:08:37222, 223, if you want?
0:08:37 > 0:08:40224, 225,
0:08:40 > 0:08:42226, 227?
0:08:44 > 0:08:46228, 229,
0:08:46 > 0:08:48230,000.
0:08:48 > 0:08:51231? 231?
0:08:52 > 0:08:55Have a think. If not, 230 for the first...
0:08:56 > 0:08:57..230 for the second...
0:08:58 > 0:09:01..230 for the third and final time... All done?
0:09:02 > 0:09:04Sold. 230, well bought.
0:09:05 > 0:09:08And, so, for £230,000,
0:09:08 > 0:09:12the two-bed flat in Camberwell, south London, was bought by Will.
0:09:14 > 0:09:17He's just finished a four-year degree in materials engineering
0:09:17 > 0:09:21and is now working for a music promotion company
0:09:21 > 0:09:23and this is his first property purchase.
0:09:24 > 0:09:28- Will, good to meet you.- Hello. - Congratulations.- Thank you.
0:09:28 > 0:09:32- Good flat.- Thanks.- Yeah. Tell me why you wanted to buy it.
0:09:32 > 0:09:35So, I moved home about six months ago after I graduated from uni.
0:09:35 > 0:09:38And I think as soon as I moved in, my mum and dad didn't want me
0:09:38 > 0:09:40to be there any more.
0:09:40 > 0:09:43And so we started looking around for little places quite near
0:09:43 > 0:09:46to central London. So, within cycling distance,
0:09:46 > 0:09:49- just to avoid the Tubes, really, in the morning.- OK.
0:09:49 > 0:09:52And this was one of the ones that we looked at and was nice
0:09:52 > 0:09:55- and within budget.- So, you went away to university. Left home...
0:09:55 > 0:09:58- Yeah, for four years.- ..finish, came back, climbed back into the nest.
0:09:58 > 0:10:00Yeah.
0:10:00 > 0:10:04Begged for my room back. And then, yeah, that was it.
0:10:04 > 0:10:06Mum and Dad said, "Er-rr-rr?!"
0:10:06 > 0:10:08"Can we get rid of you again?"
0:10:08 > 0:10:11# Oh, you had better go now
0:10:12 > 0:10:15# Go now, go now
0:10:15 > 0:10:18# Go now... #
0:10:18 > 0:10:22Aw, but don't worry, Will isn't being treated badly at all.
0:10:22 > 0:10:25In fact, he's had quite a bit of help.
0:10:25 > 0:10:28Will's parents have their own rental portfolio
0:10:28 > 0:10:30so have given him guidance.
0:10:30 > 0:10:34Plus, this purchase is being aided by the bank of Mum and Dad
0:10:34 > 0:10:38so any possible mortgage problems aren't an issue for the time being.
0:10:39 > 0:10:42Now that he's in charge of his own pad, what's the plan?
0:10:44 > 0:10:46First thing is to sort out the heating, I think,
0:10:46 > 0:10:48cos it's a bit chilly. And, hopefully,
0:10:48 > 0:10:51there's quite a lot of damp, so that will get rid of some of the damp.
0:10:51 > 0:10:52Change the bathroom.
0:10:52 > 0:10:55Get rid of the bath cos I'm not a bath sort of guy.
0:10:55 > 0:10:57So have a nice big walk-in shower.
0:10:57 > 0:11:00- Get a new kitchen and just redecorate.- OK.
0:11:00 > 0:11:02Try and sort out the roof a bit to make it a bit more
0:11:02 > 0:11:04of an entertaining area.
0:11:04 > 0:11:06Have a few parties up there. It'll be quite nice.
0:11:06 > 0:11:10- So, who's going to do the work?- So, I play water polo in Kingston so...
0:11:10 > 0:11:14- Right.- ..one of the guys there is a carpenter, so I've known him
0:11:14 > 0:11:16for seven or eight years.
0:11:16 > 0:11:18- His brother's an electrician and his dad's a plumber.- Wow.
0:11:18 > 0:11:20So they're all coming as a team,
0:11:20 > 0:11:21so I think they'll be able to do most of it.
0:11:21 > 0:11:24I think they can build a house, so I think they can decorate this one.
0:11:24 > 0:11:27- So, what about budget for the work? - So, we're hoping, obviously,
0:11:27 > 0:11:30we don't know how bad the damp's going to be and how much that's going
0:11:30 > 0:11:32to cost, but hoping to keep it under 15,000.
0:11:32 > 0:11:34What do you think is causing the damp?
0:11:34 > 0:11:37If you look outside, hopefully, it's just a gutter,
0:11:37 > 0:11:38an overflowing gutter.
0:11:38 > 0:11:41But, again, until we get a proper look
0:11:41 > 0:11:43and someone who knows a bit more about it to
0:11:43 > 0:11:45tell us about it then, yeah, we're not really sure.
0:11:45 > 0:11:50- And the timescale for the work? - Hoping to move in within a month.
0:11:50 > 0:11:52- Oh, wow.- But, again, if the damp takes a lot longer
0:11:52 > 0:11:54to sort out then it could be a lot longer.
0:11:54 > 0:11:56But you're keen to move in and your mum and dad are keen to get you in.
0:11:56 > 0:11:58- Yeah. Keen to get me out, I think. - Exactly!
0:12:00 > 0:12:01And why not?
0:12:01 > 0:12:04They bought the flat, now it's time for Will to get on with it,
0:12:04 > 0:12:06shake a leg and move.
0:12:06 > 0:12:08# Since you've got to go, whoa
0:12:08 > 0:12:10# You had better go now... #
0:12:10 > 0:12:12It's got a great feel to it, hasn't it?
0:12:12 > 0:12:15Yeah, I think it'll be really fun when it's all done up,
0:12:15 > 0:12:17yeah, ready to move into, I think it will be cool.
0:12:17 > 0:12:19What are you most looking forward to?
0:12:19 > 0:12:22Having some friends round and having a few parties, I think, will be
0:12:22 > 0:12:27- pretty fun.- In your own place.- Yeah. Like being back at uni, I think.
0:12:27 > 0:12:29- Well, listen, brilliant. Good luck with it.- Thank you very much.
0:12:29 > 0:12:31And we look forward to seeing how you get on.
0:12:33 > 0:12:36Well, Will's parents are keen for him to move out
0:12:36 > 0:12:38and he is keen to move in.
0:12:38 > 0:12:42However, with those issues of damp, I wonder if it will only be
0:12:42 > 0:12:46a month before he finally sees this as his new party pad.
0:12:46 > 0:12:48You can find out later in the show.
0:12:55 > 0:12:58- DION:- We're off to Shropshire and the town of Telford,
0:12:58 > 0:13:00a new town created in 1963.
0:13:02 > 0:13:05It's well placed for a commute, being just 20 minutes' drive
0:13:05 > 0:13:08from Shrewsbury and 45 to Birmingham.
0:13:09 > 0:13:11Population-wise,
0:13:11 > 0:13:14Telford is one of the fastest-growing places in the UK.
0:13:15 > 0:13:18Just a ten-minute walk from the town centre is this ex-council
0:13:18 > 0:13:21development and the property I'm here to see.
0:13:21 > 0:13:26It's a ground-floor, one-bedroom flat with a guide price of £35,000.
0:13:26 > 0:13:28It's too cold out here so I'm going in.
0:13:29 > 0:13:33This area was built in the 1970s, which I think you could make
0:13:33 > 0:13:35a guess at by the style.
0:13:35 > 0:13:37But overall, it looks well-maintained.
0:13:38 > 0:13:41Right, straight into the hallway. You've got a boxroom to my right.
0:13:41 > 0:13:46Very small, could you stick a single bed in there? Possibly not.
0:13:46 > 0:13:50And a good-size bedroom with central heating.
0:13:50 > 0:13:52You've got your lounge with double glazing
0:13:52 > 0:13:56and a door going out to an outside space and a bathroom
0:13:56 > 0:14:00there which is, again, a decent size and in decent condition.
0:14:00 > 0:14:02Into the kitchen area, which... It's a bit of a running theme
0:14:02 > 0:14:06in the flat, everything looks dated, it just needs tidying up.
0:14:06 > 0:14:07Very minimal spend, though, in here.
0:14:07 > 0:14:09Maybe bring it up-to-date just a bit more.
0:14:09 > 0:14:12But apart from that, very little to do
0:14:12 > 0:14:15and you could turn it around quite easy.
0:14:15 > 0:14:17Well, as they say, so far, so good.
0:14:17 > 0:14:20Though I'm not sure what to do about that boxroom.
0:14:20 > 0:14:23I mean, seriously, you'd be hard pushed to get even a desk
0:14:23 > 0:14:24and chair in here.
0:14:24 > 0:14:27A second bedroom this is not.
0:14:27 > 0:14:29# Am I living in a box?
0:14:29 > 0:14:31# Am I living in a cardboard box?
0:14:31 > 0:14:33# Am I living in a box? #
0:14:34 > 0:14:37Otherwise, this flat is not too bad at all.
0:14:37 > 0:14:40There is some tired decor and some rather interesting decor.
0:14:42 > 0:14:43Red doors, anyone?
0:14:44 > 0:14:47There's also a bit of outside space to investigate,
0:14:47 > 0:14:49but don't get too excited.
0:14:51 > 0:14:53Now, this is the outside space and it's tiny.
0:14:53 > 0:14:56It's not a reflection on the flat at all, which I think's quite
0:14:56 > 0:15:00well proportioned for a one-bed. It's in a bit of a mess here.
0:15:00 > 0:15:01And I don't know why,
0:15:01 > 0:15:04as I look around, we've got some nicely tended-to grass out there.
0:15:04 > 0:15:06They've hemmed us in with the wall,
0:15:06 > 0:15:09I feel like a chicken in a pen, to be honest.
0:15:10 > 0:15:12I'm not saying this one's a bad egg
0:15:12 > 0:15:15but the limited space here is a bit of a drawback.
0:15:15 > 0:15:19However, with that guide price of £35,000,
0:15:19 > 0:15:20I reckon this does have the potential
0:15:20 > 0:15:22to be a pretty good investment opportunity.
0:15:24 > 0:15:26But what does a local property expert
0:15:26 > 0:15:28think of this one-bed flat in Telford?
0:15:30 > 0:15:32First impressions, it needs a lot of work
0:15:32 > 0:15:34but it is very good for investment potential.
0:15:34 > 0:15:39Work I would primarily concentrate on is complete redecoration throughout.
0:15:39 > 0:15:41Certainly get rid of the red painted doors.
0:15:41 > 0:15:44I'd also do something with the bathroom.
0:15:44 > 0:15:47I think you need to be quite a small person to get in that bath
0:15:47 > 0:15:49and I think a shower would be more appropriate.
0:15:50 > 0:15:53So, how much would it cost to give this place a spruce up?
0:15:53 > 0:15:56I would suggest around about £3,000-£4,000
0:15:56 > 0:15:58to get it up to a decent standard.
0:15:59 > 0:16:02So, if it goes for anything near that guide price of £35,000,
0:16:02 > 0:16:07then the new owner's outlay would add up to a possible 39 grand.
0:16:07 > 0:16:08So, how much could it sell for?
0:16:09 > 0:16:12Once this is renovated to a decent standard,
0:16:12 > 0:16:15I would suggest an asking price of £60,000.
0:16:15 > 0:16:18There's some good profit to be made here
0:16:18 > 0:16:19but what about the rental option?
0:16:19 > 0:16:21What sort of return could it achieve?
0:16:21 > 0:16:25I would suggest a rental income of £425 per calendar month.
0:16:26 > 0:16:28If you can get this flat for near the guide price,
0:16:28 > 0:16:31it certainly makes sense as a buy-to-let investment.
0:16:31 > 0:16:33But the agent has a word of caution.
0:16:35 > 0:16:37One thing I would take into account
0:16:37 > 0:16:40if it was an investor looking to buy, is you tend to find tenants in these
0:16:40 > 0:16:43sort of properties don't tend to stay here for long durations of time.
0:16:43 > 0:16:47It tends to be quite a quick turnover of tenants for this sort of property.
0:16:48 > 0:16:50This flat is what it is.
0:16:50 > 0:16:52You may need a new bathroom, you could put a new kitchen in,
0:16:52 > 0:16:55but I think minimal spend and a very quick turnaround.
0:16:55 > 0:16:57Let's see who fancied it when it went to auction.
0:17:01 > 0:17:05Lot 35. It's a leasehold ground-floor apartment.
0:17:05 > 0:17:08Two bedrooms. So, what shall we say for lot 35?
0:17:10 > 0:17:12I beg your pardon, sir? It's only one bedroom?
0:17:12 > 0:17:14INDISTINCT
0:17:14 > 0:17:16Is it only one bedroom?
0:17:16 > 0:17:19Well, if you've seen it, it's only one bedroom.
0:17:19 > 0:17:21So, what shall we say, then? Can we say 30 to start?
0:17:22 > 0:17:2530, he's in. It's probably two. 30,000...
0:17:25 > 0:17:26LAUGHTER
0:17:28 > 0:17:3330,000, he's in. We're going once on this. At £30,000.
0:17:33 > 0:17:3431.
0:17:35 > 0:17:3632? 32,
0:17:36 > 0:17:3933? 34.
0:17:39 > 0:17:4335, 38, 39?
0:17:44 > 0:17:47£38,000. 39 anywhere else?
0:17:48 > 0:17:5039,
0:17:50 > 0:17:5340, 41, 42...
0:17:53 > 0:17:57No? At 42, still with you, sir, in the middle at £42,000.
0:17:57 > 0:17:5943 anywhere else?
0:17:59 > 0:18:03If not, £42,000 for the first time,
0:18:03 > 0:18:06£42,000 for the second time,
0:18:06 > 0:18:09third and final time, £42,000.
0:18:09 > 0:18:11You bought it, well done.
0:18:12 > 0:18:15The man with the facts at his fingertips was Ray.
0:18:17 > 0:18:20Ray paid £42,000 for this one-bed -
0:18:20 > 0:18:23yes, definitely one-bed - flat.
0:18:24 > 0:18:27Ray's no stranger to Hammer, having appeared three times.
0:18:27 > 0:18:30The most recent, when he purchased a two-bed flat
0:18:30 > 0:18:32in Dawley on behalf of a client.
0:18:35 > 0:18:38Ray has been buying and renovating properties for other people
0:18:38 > 0:18:41for the last three years, but he and his business partner,
0:18:41 > 0:18:43Martin, have, over the last nine years,
0:18:43 > 0:18:46acquired 18 properties for their portfolio.
0:18:47 > 0:18:50Ray does the project managing for the properties they own
0:18:50 > 0:18:53and he came along to tell me what the plans were for this one.
0:18:53 > 0:18:57But, first, I wanted to get to the bottom of that auction confusion.
0:18:57 > 0:18:59- Ray, nice to see you.- Hi. - Welcome back to the show.
0:18:59 > 0:19:02- Thank you, Dion, thank you.- Tell us about the auction, how was it?
0:19:02 > 0:19:06The auction was quite funny, really, because when we did
0:19:06 > 0:19:11the viewing on this property they had it listed down as a two-bedroom flat.
0:19:11 > 0:19:16And even the chap who was doing the viewings with us, with the keys,
0:19:16 > 0:19:18agreed that this is only one-bedroom flat.
0:19:19 > 0:19:25So, on the day of the auction, I informed the auctioneer,
0:19:25 > 0:19:28during the auction, this was only a one-bedroom flat.
0:19:28 > 0:19:33And he did question me on it. He did ask me, have I actually viewed it?
0:19:33 > 0:19:35And I had to say, "Yes, I've viewed it."
0:19:35 > 0:19:37I know it's a one-bedroom flat
0:19:37 > 0:19:42because I own one two doors away, exactly the same configuration.
0:19:42 > 0:19:46So, it did cause a bit of confusion at the time.
0:19:46 > 0:19:49Why do you think there was the confusion at the auction house?
0:19:49 > 0:19:53The only thing I can think of is you have a small boxroom,
0:19:53 > 0:19:56I think they must have classed that as a second bedroom.
0:19:56 > 0:19:58But I can assure you, cos we looked at it in the other property
0:19:58 > 0:20:02that we've got, that it is below the minimum square meterage
0:20:02 > 0:20:07for a bedroom, so it would be illegal to advertise it as a second bedroom.
0:20:07 > 0:20:12- Hence the hollering from the back of the room.- Absolutely. Absolutely.
0:20:12 > 0:20:13# Shout
0:20:13 > 0:20:14# Shout
0:20:14 > 0:20:17# Let it all out
0:20:17 > 0:20:21# These are the things I can do without
0:20:21 > 0:20:22# Come on
0:20:24 > 0:20:28# I'm talking to you, come on. #
0:20:28 > 0:20:31Well, it definitely is a one-bedroom flat which goes to show
0:20:31 > 0:20:33you can't take anything for granted.
0:20:33 > 0:20:37In fact, many councils have introduced minimum room sizes
0:20:37 > 0:20:39which you must conform to.
0:20:39 > 0:20:41And while these mostly apply to social housing,
0:20:41 > 0:20:44it's always worth checking with your planning department.
0:20:44 > 0:20:49In this case, Ray's policy of viewing the flat before the auction has paid off.
0:20:49 > 0:20:51But, then, he's an experienced property buyer,
0:20:51 > 0:20:54having got himself a portfolio of 18 properties.
0:20:56 > 0:21:01About nine years ago we started. I was originally a mortgage broker.
0:21:01 > 0:21:03I stopped doing that three or four years ago.
0:21:03 > 0:21:08And a friend of mine came to me, he was cash rich, time poor,
0:21:08 > 0:21:12I was time rich, and we sat down and we had a discussion
0:21:12 > 0:21:15and we decided property was the way to go forward.
0:21:15 > 0:21:18So, ever since then, we've been doing properties.
0:21:18 > 0:21:22We're not hugely prolific, two or three a year,
0:21:22 > 0:21:26but over nine years that's built up a little portfolio for our pension.
0:21:26 > 0:21:29So, this was alongside your job and now it's your full-time job.
0:21:29 > 0:21:33Yes, when we first started it was alongside the mortgage broker.
0:21:33 > 0:21:39Then the recession came in 2007, that killed the mortgage side,
0:21:39 > 0:21:42so we moved into this. I wouldn't say full-time,
0:21:42 > 0:21:45but I'm semi-retired which is great for me at the moment.
0:21:45 > 0:21:49So, are you buying properties like this, are they all similar?
0:21:49 > 0:21:52Absolute priority is rental.
0:21:52 > 0:21:56It's a pension portfolio that we're trying to build up.
0:21:56 > 0:21:58One of the reasons we buy this type of property
0:21:58 > 0:22:02is because you can almost guarantee you're going to get a 10-11%
0:22:02 > 0:22:04return on your money.
0:22:04 > 0:22:08It's one of the reasons why I like the area and this type of property.
0:22:08 > 0:22:10Almost all our portfolio is in Telford.
0:22:10 > 0:22:14It's the closest area to where I live in the south-east,
0:22:14 > 0:22:18to Buckinghamshire, that I can get to, that'll actually give me
0:22:18 > 0:22:22a 10%-plus return on almost every property you buy.
0:22:22 > 0:22:26- You are a way away from home, then, aren't you?- Oh, yes!
0:22:26 > 0:22:29You take a property like this, tonight I move me camp bed in,
0:22:29 > 0:22:34me kettle. And we'll doss here for three nights a week.
0:22:34 > 0:22:36So, Ray, you'll actually move in,
0:22:36 > 0:22:40- you'll bring a camp bed in or...? - Blow-up bed.- Blow-up bed?- Yeah.
0:22:40 > 0:22:45- One with a built-in motor.- OK. - Stick it in.- Plug it. Up it goes.
0:22:45 > 0:22:46Up it goes.
0:22:46 > 0:22:47Sound as a pound.
0:22:49 > 0:22:53Ray is happy to sacrifice comfort in order to maximise profit.
0:22:53 > 0:22:56And his blow-up bed should help avoid a blow-up budget.
0:22:58 > 0:23:01Staying on-site means he'll be saving plenty on petrol
0:23:01 > 0:23:02and travel time.
0:23:04 > 0:23:07While he's here, Ray plans to project-manage the renovation
0:23:07 > 0:23:08with his usual team of tradesmen
0:23:08 > 0:23:12he uses for his rental properties here in Telford.
0:23:12 > 0:23:16He's got a budget of £2,500, but for that sort of money
0:23:16 > 0:23:18what exactly has he got lined up for this place?
0:23:19 > 0:23:21Strip the wallpaper.
0:23:21 > 0:23:24The only problem you have in some of these properties is that they
0:23:24 > 0:23:27tend to wallpaper directly onto plasterboard.
0:23:27 > 0:23:31So, when you rip the wallpaper off you can end up with a terrible surface.
0:23:31 > 0:23:35So, we may have to give it a quick plaster skim.
0:23:35 > 0:23:38So, strip the wallpaper, skim it, paint it.
0:23:38 > 0:23:43New carpet, new cooker, clean up the outside patio area.
0:23:43 > 0:23:46Really, that's about it. A little bit more work in the kitchen
0:23:46 > 0:23:48and tidy up the bathroom a little bit but not a lot.
0:23:48 > 0:23:49Very minor, isn't it?
0:23:49 > 0:23:53And how long is it going to take you from this to finish?
0:23:53 > 0:23:56Well, we could do this one in ten days.
0:23:56 > 0:23:57We're not going to
0:23:57 > 0:24:00because we have another project going on at the same time.
0:24:00 > 0:24:03And the workmen will go from one project
0:24:03 > 0:24:05to the other project and back again.
0:24:05 > 0:24:07So, I'm in no hurry to get this one done in two weeks,
0:24:07 > 0:24:09so I'll give you a six-week timescale.
0:24:09 > 0:24:11And you'll get them both done at the same time?
0:24:11 > 0:24:13Both done at the same time.
0:24:13 > 0:24:16- With your experience, it won't be a problem, pal.- Thank you, Dion.
0:24:16 > 0:24:18- Good luck, mate.- Thank you.
0:24:18 > 0:24:22So, Ray finally got his one-bedroom flat in the end.
0:24:22 > 0:24:24And, again, he's chose wisely.
0:24:24 > 0:24:28This will be a quick cosmetic turnaround. With his small budget
0:24:28 > 0:24:31and that six-week period, will he get it all done?
0:24:31 > 0:24:33Will he be happy with the finish?
0:24:33 > 0:24:34You can find out later on in the programme.
0:24:37 > 0:24:40Still to come, there's a blemish in Derby.
0:24:41 > 0:24:43Yes! I am glad I found something
0:24:43 > 0:24:45that's not quite right with this property.
0:24:47 > 0:24:50And in Telford, there's a case of homesickness for Ray.
0:24:50 > 0:24:54I quite enjoy coming up here, although after about the third night
0:24:54 > 0:24:55I can't wait to get home.
0:25:00 > 0:25:03- MARTIN:- It was in the south London area of Camberwell
0:25:03 > 0:25:08where we first saw a rather quirky two-bedroom flat tucked away behind
0:25:08 > 0:25:10and above a commercial property.
0:25:12 > 0:25:16This flat was an unusual layout with a long corridor leading
0:25:16 > 0:25:18to a large diner with a kitchen off it.
0:25:19 > 0:25:23It had the bonus of being split level, with two bedrooms upstairs
0:25:23 > 0:25:26complete with access to a potential roof terrace.
0:25:28 > 0:25:31But with signs of damp and a restaurant below,
0:25:31 > 0:25:34this wasn't going to be to everyone's taste.
0:25:34 > 0:25:38For Will, a recently graduated materials engineer,
0:25:38 > 0:25:43this was a much-needed first step onto the property ladder.
0:25:43 > 0:25:45# You, babe
0:25:45 > 0:25:48# Steppin' out. #
0:25:50 > 0:25:52Tell me why you wanted to buy it.
0:25:52 > 0:25:55So, I moved home about six months ago after I graduated from uni.
0:25:55 > 0:25:58And I think as soon as I moved in, my mum and dad
0:25:58 > 0:26:00didn't want me to be there any more.
0:26:00 > 0:26:02And so we started looking around for little places
0:26:02 > 0:26:05and this was one of the ones that we looked at that was nice.
0:26:05 > 0:26:08# It's time to go now
0:26:08 > 0:26:10# Oh, no. #
0:26:10 > 0:26:13Will's parents had helped him to acquire his new abode by
0:26:13 > 0:26:19providing the all-important funding towards his £230,000 purchase.
0:26:19 > 0:26:24And with his own savings he had a £15,000 budget to sort out
0:26:24 > 0:26:27and refurbish his new nest.
0:26:27 > 0:26:29He and his parents were hoping he could be in
0:26:29 > 0:26:31and settled in just a month.
0:26:34 > 0:26:36Two months later, we're back with Will to see
0:26:36 > 0:26:38if he's made it a home from home.
0:26:38 > 0:26:41MUSIC: On Top Of The World by Imagine Dragons
0:26:43 > 0:26:45Well, he's certainly put the wheels in motion,
0:26:45 > 0:26:49with a crisp white paintwork and useful shelving.
0:26:49 > 0:26:51He's even found somewhere to put his bike.
0:27:00 > 0:27:05That big lounge is an eclectic mix of furniture and fittings.
0:27:05 > 0:27:07Will has installed a new boiler
0:27:07 > 0:27:10and has had the internal damp sorted, too.
0:27:10 > 0:27:13He's hoping it all dries out by late summer
0:27:13 > 0:27:17when he'll fix the roof tiles that have been part of the problem.
0:27:17 > 0:27:19The kitchen has been given a whole new lease of life.
0:27:19 > 0:27:21The main things that have changed,
0:27:21 > 0:27:23we completely gutted it at the beginning.
0:27:23 > 0:27:24Got a new boiler.
0:27:24 > 0:27:28And, yeah, took all the old units out, ripped up the old tiles.
0:27:28 > 0:27:30I was going to go for all white, and then my sister persuaded me
0:27:30 > 0:27:33to get a bright yellow one just to get a bit of colour, I guess.
0:27:33 > 0:27:34So, yeah, I'm really happy with it.
0:27:37 > 0:27:40Well, if the kitchen is a lot better, how about the other
0:27:40 > 0:27:44room that was in a sorry state, that bathroom back down the corridor?
0:27:46 > 0:27:49So, in here what we did was we blocked up the old doorway
0:27:49 > 0:27:52and we moved it just further down the hallway
0:27:52 > 0:27:55so we could make space for a walk-in shower.
0:27:55 > 0:27:59And we got rid of the old bath and old toilet and sink
0:27:59 > 0:28:03and fitted in completely new ones. We retiled the flooring.
0:28:03 > 0:28:07Nice to have a nice, big shower and it's really powerful and, yeah,
0:28:07 > 0:28:08it's a good start to the day!
0:28:08 > 0:28:12So, an invigorating power shower now awaits once Will has
0:28:12 > 0:28:15emerged from his upstairs bedroom, of course.
0:28:15 > 0:28:17MUSIC: Amsterdam by Imagine Dragons
0:28:25 > 0:28:27And with the second bedroom just about finished,
0:28:27 > 0:28:30internally it's ready to go.
0:28:30 > 0:28:34But what about the rooftop terrace leading off from the bedrooms?
0:28:34 > 0:28:36Out there we just cleaned it up a bit and we got some chairs out
0:28:36 > 0:28:39there and put some plants up there just to make it look a bit nicer.
0:28:39 > 0:28:43Yes, it is lovely, Will, but it's definitely not party-ready yet.
0:28:45 > 0:28:49Fortunately, Will has found the freeholder is open to having
0:28:49 > 0:28:52any work done that improves the property, which is good news
0:28:52 > 0:28:55and Will plans to sort this out in the future.
0:28:57 > 0:28:59Please do that soon, Will.
0:28:59 > 0:29:03Moved in sort of last weekend but gradually, over the whole time,
0:29:03 > 0:29:04been moving things in.
0:29:04 > 0:29:06The furniture's being here quite a long time.
0:29:06 > 0:29:08And, yeah, I've got a friend who's moving in next weekend,
0:29:08 > 0:29:12so when they're in I think it will feel much more...finished.
0:29:12 > 0:29:16On top of getting a new home, Will's also got a new job
0:29:16 > 0:29:20in Brixton, which is just a ten-minute cycle ride away.
0:29:20 > 0:29:22So, the flat really is just right for him.
0:29:22 > 0:29:26But what do his parents think of their investment?
0:29:26 > 0:29:29Yeah, so, I think my parents came and looked at it yesterday
0:29:29 > 0:29:31and I think they're pretty happy with it.
0:29:31 > 0:29:33Pretty happy with the work that has been done.
0:29:33 > 0:29:35So, yeah, they're keen to get rid of me,
0:29:35 > 0:29:37given me quite a lot of the furniture and stuff, so...
0:29:37 > 0:29:39# So it's time to say goodbye. #
0:29:40 > 0:29:43While his parents were helping with the purchase of the flat,
0:29:43 > 0:29:45the budget for the work was down to him.
0:29:45 > 0:29:49So, how deep did Will have to dig into his pockets?
0:29:49 > 0:29:52So far, I think we've just spent just over 14,000.
0:29:52 > 0:29:56There was quite a big cost of getting the new boiler
0:29:56 > 0:29:58which we sort of factored in for.
0:29:58 > 0:30:02And, then, yeah, got a little bit left over to sort out the damp at
0:30:02 > 0:30:03the end of summer and, hopefully,
0:30:03 > 0:30:06we should be just about on 15 at the end of it.
0:30:07 > 0:30:13A £15,000 spend on top of the £230,000 purchase price would
0:30:13 > 0:30:17take Will's total cost to £245,000.
0:30:18 > 0:30:21So, has this first step onto the property ladder been the right move?
0:30:21 > 0:30:24What do two local estate agents think?
0:30:24 > 0:30:27Firstly, the agent who saw it last time.
0:30:27 > 0:30:30Coming back to the property, the changes are fantastic.
0:30:30 > 0:30:32He's transformed it. It looks really good.
0:30:32 > 0:30:37I really like what he's done with the kitchen. The new units, the black worktop looks really nice,
0:30:37 > 0:30:40but the yellow above, I think it gives it a bit of dimension to
0:30:40 > 0:30:45a very small area and makes it really interesting. I like that. Might have to nick that idea!
0:30:45 > 0:30:47I like the split level, the fact that you can go up
0:30:47 > 0:30:51to your bedroom at night and it separates the living area.
0:30:51 > 0:30:54The outside space, I think it's a great feature.
0:30:54 > 0:30:56It does need fencing put up around it,
0:30:56 > 0:30:59just to make sure it's enclosed and secure.
0:30:59 > 0:31:02Does it sound like we're ganging up on you, Will?
0:31:02 > 0:31:07Well, let's tell you something you will want to hear - the numbers.
0:31:07 > 0:31:10Not that this is going to be rented out any time soon,
0:31:10 > 0:31:15but what kind of rental potential does this place have?
0:31:15 > 0:31:19Rented, you'd achieve between minimum of £1,200 per calendar
0:31:19 > 0:31:23month, with a maximum of about £1,400 per calendar month.
0:31:23 > 0:31:27I think this property should market for around about £1,350 per
0:31:27 > 0:31:28calendar month.
0:31:28 > 0:31:32And even the lower £1,200 per calendar month would give
0:31:32 > 0:31:36an annual rental yield just below 6%, but more importantly,
0:31:36 > 0:31:41was this a wise investment of £245,000?
0:31:41 > 0:31:45If you was going to sell this, once it's completely finished,
0:31:45 > 0:31:49I think you'd be asking somewhere between £270,000 and £300,000.
0:31:49 > 0:31:51I think currently with this market,
0:31:51 > 0:31:54it should value for around about £290,000 to £300,000.
0:31:54 > 0:31:59They're really nice valuations. It's nice to know that obviously that's quite a bit more than
0:31:59 > 0:32:03we paid for it, so it's nice to know that the investment has been good.
0:32:03 > 0:32:06Yes, a good investment indeed, with a potential pre-tax
0:32:06 > 0:32:10profit of £25,000 to £55,000, less expenses, of course.
0:32:10 > 0:32:15So, now Will's finally flown the nest to set up house on his own,
0:32:15 > 0:32:17is he happy with the result?
0:32:19 > 0:32:22Yeah, it's really nice to have the flat and to be here.
0:32:22 > 0:32:26I've really enjoyed doing it up and it's been a nice little project.
0:32:31 > 0:32:35Off to Alvaston now, a large suburb in Derby.
0:32:35 > 0:32:40During World War II, Alvaston Park was used as a prisoner of war camp.
0:32:43 > 0:32:46And nowadays, the park is home to a top-notch national standard
0:32:46 > 0:32:49BMX track.
0:32:49 > 0:32:53I am literally just a stone's throw from the lovely park
0:32:53 > 0:32:57and only a couple of miles from Derby city centre and I'm here to
0:32:57 > 0:33:04see this, a three-bed semi, and it had a guide price of £65,000 plus.
0:33:04 > 0:33:06Looks really nice from the outside.
0:33:06 > 0:33:09The inside can't be as good, can it?
0:33:11 > 0:33:13The kerb appeal's great out there.
0:33:13 > 0:33:19And walking in to the property, it's even better!
0:33:19 > 0:33:21Wow! I was not expecting this.
0:33:21 > 0:33:25Shiny, new, the floor's beautiful,
0:33:25 > 0:33:28the windows look great,
0:33:28 > 0:33:33there's a lovely fire surround and fire that looks new.
0:33:33 > 0:33:38The paint feels new. It's all just a bit shiny and lovely.
0:33:38 > 0:33:41The kitchen through here, again, a fabulous space.
0:33:41 > 0:33:45You could easily fit a little table in there. Units, new.
0:33:45 > 0:33:50So, you know on this programme, yeah, you have a before
0:33:50 > 0:33:54and an after bit, do you think we've walked in on the reveal?
0:33:54 > 0:33:57Guys, what do you think? This is the first look!
0:34:02 > 0:34:06There's no doubt that this is a cracking property.
0:34:06 > 0:34:09It even has what looks like a brand-new boiler,
0:34:09 > 0:34:12and all on our first look.
0:34:12 > 0:34:16# It was my first look
0:34:16 > 0:34:19# Baby, that's all it took
0:34:19 > 0:34:23# Was my first look. #
0:34:23 > 0:34:26Now, if I was going to be fussy, then the bathroom,
0:34:26 > 0:34:30very nice though it is, is downstairs. Too fussy?
0:34:30 > 0:34:31Well, perhaps,
0:34:31 > 0:34:35because a downstairs bathroom isn't always a deal breaker.
0:34:38 > 0:34:41And upstairs, much of the same.
0:34:41 > 0:34:44Bedroom one, two, and three.
0:34:44 > 0:34:47Very similar to downstairs - clean, shiny and bright.
0:34:47 > 0:34:49They all look fantastic.
0:34:49 > 0:34:52The carpet is even so lovely,
0:34:52 > 0:34:53it's all squashy,
0:34:53 > 0:34:55it's really good quality.
0:34:55 > 0:34:57It's a fantastic house, this.
0:34:57 > 0:35:02As far as I can see, this would be a brilliant rental machine
0:35:02 > 0:35:06because you can't really add value to a place like this, so I think
0:35:06 > 0:35:09anybody looking at this property will first of all be a bit
0:35:09 > 0:35:12surprised because it's not a usual Homes Under The Hammer type
0:35:12 > 0:35:16house but, hey, this could be an instant renter,
0:35:16 > 0:35:18get the tenants in, job done.
0:35:20 > 0:35:22The nit-picker in me
0:35:22 > 0:35:26has to point out again that there is only one bathroom
0:35:26 > 0:35:29and it is downstairs, which isn't ideal,
0:35:29 > 0:35:33so would you lose a bedroom to fit a bathroom up here?
0:35:33 > 0:35:35Something to consider.
0:35:35 > 0:35:39Aside from that, though, the bedrooms are pretty good sizes
0:35:39 > 0:35:42and the decor is perfect.
0:35:42 > 0:35:44This property could put me out of a job!
0:35:46 > 0:35:48Yes!
0:35:48 > 0:35:52I am glad I found something that's not quite right with this property.
0:35:54 > 0:35:56The grass needs cutting.
0:35:56 > 0:35:58Ha!
0:35:58 > 0:36:01Yes! Told you I was a nit-picker!
0:36:01 > 0:36:04Well, aside from that long grass and the downstairs bathroom, this
0:36:04 > 0:36:10property at a guide price of £65,000-plus represents a sound investment.
0:36:10 > 0:36:14But why has a property in such good order found
0:36:14 > 0:36:16itself in the auction room?
0:36:16 > 0:36:18We asked the auctioneer for his opinion.
0:36:18 > 0:36:20Well, there's a whole raft of reasons,
0:36:20 > 0:36:23but the main reason is usually because people have tried to
0:36:23 > 0:36:27sell it by private treaty and it hasn't happened, for whatever reason.
0:36:27 > 0:36:30A sale may have fallen through or they may just have had no interest.
0:36:30 > 0:36:32May have been overpriced.
0:36:32 > 0:36:35And they're now in a situation where they need to move it on.
0:36:35 > 0:36:38So, auction is the opportunity.
0:36:38 > 0:36:42From a rental point of view, this has got everything going for it, really.
0:36:42 > 0:36:45From an owner-occupier's point of view, I think it would be a
0:36:45 > 0:36:48slightly frustrating property,
0:36:48 > 0:36:52in the sense that the floor area is very restricted, you've got
0:36:52 > 0:36:56one smallish living room, we're in a kitchen which is not oversized.
0:36:56 > 0:37:00The main issue is that whilst you've got three bedrooms,
0:37:00 > 0:37:02none of them are large.
0:37:02 > 0:37:06You have got a ground-floor bathroom which is accessed off the kitchen.
0:37:06 > 0:37:09You just would never build a house with that design,
0:37:09 > 0:37:11that configuration, these days.
0:37:11 > 0:37:14And in truth, a ground-floor bathroom located off the kitchen is not
0:37:14 > 0:37:17very user-friendly. So, what do you do?
0:37:17 > 0:37:20You take it upstairs, you sacrifice a bedroom, it becomes
0:37:20 > 0:37:24a two-bedroom semi, consequentially, your price is affected.
0:37:24 > 0:37:26What do you do about it?
0:37:26 > 0:37:30The answer is, if it's renovated, you do nothing, you just rent it out.
0:37:30 > 0:37:33Well, in that case, assuming the buyer does do nothing
0:37:33 > 0:37:37and simply rents it out, what could they expect?
0:37:37 > 0:37:40It would have a rental value, I would have thought,
0:37:40 > 0:37:44of about £525 per calendar month.
0:37:44 > 0:37:48Which, if it was bought for the guide price of £65,000,
0:37:48 > 0:37:52would equate to a very healthy 9.5% yield.
0:37:52 > 0:37:56But what if it was resold outside of the auction house?
0:37:56 > 0:37:58As it stands,
0:37:58 > 0:38:03I would expect it to fetch something in the order of £75,000.
0:38:03 > 0:38:06This is an exceptional auction buy, in my book.
0:38:06 > 0:38:10It's nearly perfect, apart from that grass, of course.
0:38:10 > 0:38:13So, who will be getting their mower out after the bidding?
0:38:13 > 0:38:15Let's find out.
0:38:18 > 0:38:22It's a three-bedroom semidetached house,
0:38:22 > 0:38:25which has just had a total scheme of renovation and improvement.
0:38:25 > 0:38:28Bid me where you like, 60 will start it.
0:38:28 > 0:38:3160,000, thank you. 60, I've got, here on the front row.
0:38:31 > 0:38:34At £60,000. 61 is bid there.
0:38:34 > 0:38:3661. 62.
0:38:36 > 0:38:3862. 63.
0:38:38 > 0:38:4164,000. And five.
0:38:41 > 0:38:4365. 66.
0:38:43 > 0:38:49With the bids flying, we leave and rejoin at £73,500.
0:38:49 > 0:38:54At £73,500, you can walk away with it today. 74.
0:38:54 > 0:38:5675. 500? 500.
0:38:56 > 0:39:0075. 500.
0:39:00 > 0:39:0376? 76.
0:39:03 > 0:39:05It's worth another shot.
0:39:05 > 0:39:08£76,000.
0:39:08 > 0:39:09No?
0:39:09 > 0:39:12At £76,000 for the first time...
0:39:12 > 0:39:1776,000 for the second time... Third opportunity. All done?
0:39:17 > 0:39:19Sold at £76,000. Thank you.
0:39:24 > 0:39:30The successful bidder was Taj, with that bid of £76,000.
0:39:30 > 0:39:34Taj is an estate agent and is no stranger to property and also, no
0:39:34 > 0:39:40stranger to Homes Under The Hammer, having appeared on the show in 2012,
0:39:40 > 0:39:42when he bought another property in Derby.
0:39:42 > 0:39:45I met him back at his latest purchase, to find
0:39:45 > 0:39:47out his plans for this one.
0:39:47 > 0:39:50- Taj, congratulations. Well done.- Thank you.
0:39:50 > 0:39:52So, did you expect to get this on auction day?
0:39:52 > 0:39:56When the hammer went down and it was yours, were you quite surprised?
0:39:56 > 0:39:58No, I had a good feeling, actually.
0:39:58 > 0:40:00You always go in with an open mind with an auction.
0:40:00 > 0:40:04You've got to stick to your budget, but then on the day,
0:40:04 > 0:40:09anything can happen, so obviously, this one came up and it went to plan.
0:40:09 > 0:40:12Did you do much research? Did you read the legal pack?
0:40:12 > 0:40:14- Did you get a survey done?- Yeah.
0:40:14 > 0:40:17Well, I did read the legal pack, but I didn't do the survey
0:40:17 > 0:40:19because I had a look at the property.
0:40:19 > 0:40:24I was dragged along by a friend, so I didn't make the appointment.
0:40:24 > 0:40:27It turned out to be a blessing in disguise because when I came
0:40:27 > 0:40:31and saw it, I thought, it's already done, nothing to do, it's a
0:40:31 > 0:40:33great rental property.
0:40:33 > 0:40:36You were dragged on by a friend, just to have a look.
0:40:36 > 0:40:39So, you weren't planning on buying this.
0:40:39 > 0:40:42- Not particularly this property, no. - Oh.- I was looking at others.
0:40:42 > 0:40:46But obviously, I've been buying property for a number of years
0:40:46 > 0:40:49now and it's not your typical auction property.
0:40:49 > 0:40:51It is not and that is the big thing with this one.
0:40:51 > 0:40:54It's not a typical Homes Under The Hammer scruffy,
0:40:54 > 0:40:58dirty house that nobody wants to put their bags down in.
0:40:58 > 0:41:02This is something that's very new and shiny and well kept.
0:41:02 > 0:41:05Do you know any of the back story, the history of this?
0:41:05 > 0:41:09It was on the market and the vendor didn't really achieve the price
0:41:09 > 0:41:12they wanted and it ended up in the auction room.
0:41:12 > 0:41:15So, what are you going to change in this house? What can you do?
0:41:15 > 0:41:19- The only thing I really can do is cut the grass.- Just cut the grass!- Yeah.
0:41:19 > 0:41:23You've just got to cut the grass. That's what I said! That's the only thing I can see wrong with it.
0:41:23 > 0:41:25And what about upstairs?
0:41:25 > 0:41:29Upstairs, just basically probably feature the fireplace,
0:41:29 > 0:41:31make it a feature wall.
0:41:31 > 0:41:33But that's it, really.
0:41:33 > 0:41:36Now, you've got the typical bathroom downstairs scenario,
0:41:36 > 0:41:38do you move it upstairs, do you damage
0:41:38 > 0:41:42the value of the property cos then you're taking away a bedroom?
0:41:42 > 0:41:45I know lots of people that would rather an upstairs bathroom
0:41:45 > 0:41:48and the other half quite happy to have three bedrooms.
0:41:48 > 0:41:50In terms of rental potential,
0:41:50 > 0:41:53it's much better to have the three rooms upstairs.
0:41:53 > 0:41:54Exactly. Yeah.
0:41:54 > 0:41:58So, obviously, I know next door's a two-bedroom with an upstairs
0:41:58 > 0:42:02bathroom, but this is a three-bedroom with a downstairs bathroom.
0:42:02 > 0:42:05So, from a rental perspective, obviously, you're going
0:42:05 > 0:42:08to get more rent, having an extra bedroom.
0:42:08 > 0:42:11So, I'd leave it as it is.
0:42:11 > 0:42:15And it seems that Taj's view on this seems to be correct
0:42:15 > 0:42:18because he already has a tenant lined up
0:42:18 > 0:42:22and has agreed a rent, which will give him a yield of 8.6%.
0:42:22 > 0:42:26Unless there turns out to be some hidden horror lurking somewhere,
0:42:26 > 0:42:30this must be one of the quickest stories we've ever filmed.
0:42:30 > 0:42:32I'm not sure we shouldn't just go out the door
0:42:32 > 0:42:35and come back in for the big reveal.
0:42:35 > 0:42:39All this is a far cry from that previous property of his that
0:42:39 > 0:42:41featured on the programme before.
0:42:41 > 0:42:45It was a three-bedroom terraced property in the city centre
0:42:45 > 0:42:46end of town.
0:42:46 > 0:42:50- And we basically converted it into a multi-let property.- Wow.
0:42:50 > 0:42:55- And I bet you needed to do a whole lot more work than this one. - Exactly, yeah.- How different!
0:42:55 > 0:42:58Very different, so we made it into a multi-let property,
0:42:58 > 0:43:02brought it up to standard, spent a lot of money on it actually, but it's
0:43:02 > 0:43:06very nice cos it now is fully let and we make a good return on that.
0:43:06 > 0:43:09Taj, lovely to meet you. I was just about to say,
0:43:09 > 0:43:11"I can't wait to see what it's like when it's finished,"
0:43:11 > 0:43:14but there you go, I've just seen it, because it is finished.
0:43:14 > 0:43:17- Lovely to meet you.- You too. - Well done.- Thank you.
0:43:17 > 0:43:19Apart from cutting the grass, I think
0:43:19 > 0:43:23Taj has landed on his feet with this newly decorated property
0:43:23 > 0:43:28and with over an 8% rental yield, well, it could prove to be a winner.
0:43:28 > 0:43:30All sounds too good to be true to me.
0:43:30 > 0:43:34Let's hope there are no nasty surprises further down the line.
0:43:34 > 0:43:37Join me later on in the programme and you can see how Taj gets on.
0:43:40 > 0:43:43We've seen how everything turned out for one of our buyers,
0:43:43 > 0:43:45but there's more to come.
0:43:45 > 0:43:49Yes, was there potential profit to be released?
0:43:49 > 0:43:51I think we should take a look.
0:43:55 > 0:43:58We return to Shropshire, to the town of Telford,
0:43:58 > 0:44:02which, with its increasing population and business expansion,
0:44:02 > 0:44:04makes an ideal place for the buy-to-let investor.
0:44:06 > 0:44:09That's exactly what attracted Ray, who, along with
0:44:09 > 0:44:13his business partner, bought this one-bed flat for £42,000.
0:44:14 > 0:44:15And if Ray looks familiar that's
0:44:15 > 0:44:19because he is no newcomer to Homes Under The Hammer, having previously
0:44:19 > 0:44:23appeared on the show with properties bought in, you guessed it, Telford.
0:44:23 > 0:44:25Although he hails from Buckinghamshire,
0:44:25 > 0:44:29120 miles away, Ray focuses on the Telford area
0:44:29 > 0:44:31because of its good rental yields.
0:44:31 > 0:44:33And in order to protect that budget
0:44:33 > 0:44:37you, of course, need to get the budget under control.
0:44:37 > 0:44:41Ray had a plan that, well, blew me away.
0:44:41 > 0:44:44- You are a way away from home, aren't you?- Oh, yes.
0:44:44 > 0:44:46You take a property like this.
0:44:46 > 0:44:50Tonight, I'll move me camp bed in, me kettle.
0:44:50 > 0:44:53Erm, we'll doss here for three nights a week.
0:44:53 > 0:44:56So, Ray, you'll actually move in, you'll bring a camp bed in?
0:44:56 > 0:45:00- Blow-up bed.- A blow-up bed? - Yeah, one with a built-in motor.- OK.
0:45:00 > 0:45:04- Plug it in and off it goes. - Sound as a pound.
0:45:06 > 0:45:10Ray was tackling two properties at the same time, so kipping
0:45:10 > 0:45:12in this one made a lot of sense.
0:45:12 > 0:45:17He thought a six-week timescale was generous as this was an easy one and
0:45:17 > 0:45:20stripping the wallpaper and skimming the walls would be the hardest bit.
0:45:22 > 0:45:24With a budget of two-and-a-half grand,
0:45:24 > 0:45:27camping gear on standby, he was raring to go.
0:45:27 > 0:45:30Six weeks later, how is it looking?
0:45:33 > 0:45:37Well, exactly as Ray intended - redecorated and re-carpeted.
0:45:37 > 0:45:40The flat is fresher and smarter all round.
0:45:44 > 0:45:47The kitchen has had the same treatment, with some retiling
0:45:47 > 0:45:50thrown in for good measure, but it looks like Ray has added
0:45:50 > 0:45:53a bit more to this flat than originally intended.
0:45:53 > 0:45:57The only thing that we changed our minds on on this property is
0:45:57 > 0:46:00the fact that we decided to semi-furnish it.
0:46:00 > 0:46:04We were actually gifted a few items, like the sofa and the chair.
0:46:04 > 0:46:07Once we were gifted that, then we thought why not put in
0:46:07 > 0:46:10a washing machine and fridge-freezer and a TV.
0:46:10 > 0:46:13The extra rental we should get should well cover that
0:46:13 > 0:46:16and it makes a change from our normal offering.
0:46:16 > 0:46:17Good idea, Ray,
0:46:17 > 0:46:20it does make the flat more appealing to a potential tenant.
0:46:20 > 0:46:23# A little of that human touch
0:46:23 > 0:46:28# Just a little of that human touch... #
0:46:28 > 0:46:32And the boxroom? Well, it's still a box,
0:46:32 > 0:46:35but it could make a decent enough study.
0:46:35 > 0:46:38And moving on, the bathroom has had a lick of paint
0:46:38 > 0:46:40and is in the pink.
0:46:43 > 0:46:46The only thing that we were concerned of before we actually started
0:46:46 > 0:46:49the work was what we'd find under the wallpaper
0:46:49 > 0:46:52because you never know what you're going to hit.
0:46:52 > 0:46:55But, fortunately, all the plaster under the wallpaper was of a good
0:46:55 > 0:47:00standard, so filled in a few holes, quick rub down, paint on top,
0:47:00 > 0:47:02no problem at all.
0:47:02 > 0:47:04And just as Ray predicted,
0:47:04 > 0:47:07sprucing up this place only took ten days.
0:47:07 > 0:47:12But in fact he's been a busy boy over the past six weeks here in Telford.
0:47:12 > 0:47:16I have used this property to actually stay up here two or three nights
0:47:16 > 0:47:20a week because I've got two other properties at the moment that
0:47:20 > 0:47:23I'm renovating and there is another one in the pipeline.
0:47:23 > 0:47:26I quite enjoy coming up here for two or three nights,
0:47:26 > 0:47:30although after about the third night I can't wait to get home.
0:47:30 > 0:47:32The trouble is after three days of being at home,
0:47:32 > 0:47:35I can't wait to get back up here to see how the work is going -
0:47:35 > 0:47:37so it is not a bad compromise.
0:47:37 > 0:47:40# Three nights a week
0:47:40 > 0:47:42# You're gone
0:47:44 > 0:47:48# Three nights a week, that's too long... #
0:47:49 > 0:47:53And for Ray, his time away from home makes plain good business sense.
0:47:55 > 0:47:59We buy in Telford mainly because here we can get
0:47:59 > 0:48:05something in the region of 10%. Down south, you're lucky to get 5%.
0:48:05 > 0:48:07Therefore, by the time you've remortgaged
0:48:07 > 0:48:10the property down south, you are not actually making any income,
0:48:10 > 0:48:13you're relying purely on capital growth
0:48:13 > 0:48:16and that's not the way we want to work.
0:48:16 > 0:48:19Of course, getting that sort of yield on your investment
0:48:19 > 0:48:22depends not just on how much you spend buying the place
0:48:22 > 0:48:25but also on how much it costs to do up.
0:48:25 > 0:48:28Our original budget without fees was £2,500.
0:48:28 > 0:48:32We came in at £3,500.
0:48:32 > 0:48:36I was probably a little optimistic to begin with, as we all are,
0:48:36 > 0:48:39but then we weren't expecting to semi-furnish the property,
0:48:39 > 0:48:42to buy fridge-freezers, TVs, washing machines,
0:48:42 > 0:48:46and items like that which helped to push us over the budget.
0:48:48 > 0:48:52Added to that purchase price of £42,000,
0:48:52 > 0:48:55the total outlay here is £45,500.
0:48:55 > 0:48:59Time to find out what two local estate agents thought of this one-bed flat,
0:48:59 > 0:49:03starting with the agent who first saw the property before its makeover.
0:49:03 > 0:49:05The changes that have been carried out to
0:49:05 > 0:49:07the property are generally good.
0:49:07 > 0:49:10It's all been decorated and made nice and light throughout.
0:49:10 > 0:49:11New carpets.
0:49:11 > 0:49:16Generally, good for the market at the place that this would appeal to.
0:49:16 > 0:49:18I think the property is OK.
0:49:18 > 0:49:20I think the original kitchen has been retained,
0:49:20 > 0:49:22so you've a good-sized kitchen/diner.
0:49:22 > 0:49:26I would certainly say it is suitable for the rental market.
0:49:26 > 0:49:28For the rental market, the standard of finish
0:49:28 > 0:49:32and the improvements that have been carried out it is probably spot on.
0:49:32 > 0:49:35It looks nice and fresh, clean as you walk in,
0:49:35 > 0:49:37but absolutely fine for the rental market.
0:49:37 > 0:49:39And that is exactly where it's going.
0:49:39 > 0:49:46But having spent £45,500, what sort of rental return could Ray expect?
0:49:46 > 0:49:48If this property was on the rental market furnished,
0:49:48 > 0:49:51I would say it was worth £425 per calendar month.
0:49:51 > 0:49:56Fully furnished, I would suggest an asking price of £450 per calendar month.
0:49:56 > 0:50:00We have the rental on the market at around £450 a month.
0:50:00 > 0:50:03I would normally expect to get between 400
0:50:03 > 0:50:06and 425 for an unfurnished property,
0:50:06 > 0:50:12so I'm hoping to get an extra £25-£50 a month because it is partially
0:50:12 > 0:50:17furnished and I think £450 is a fair price and we will achieve it.
0:50:17 > 0:50:21Ray knows his onions here and if he did manage to get that rental
0:50:21 > 0:50:26income then he could expect an amazing annual yield of just under 12%.
0:50:26 > 0:50:29But the agents reckon selling the house could
0:50:29 > 0:50:35achieve between £55,000-£62,500, giving Ray a potential profit of up to £17,000.
0:50:36 > 0:50:38Potentially a good mark-up on the resale,
0:50:38 > 0:50:41but by the time you pay solicitors' costs and things
0:50:41 > 0:50:45like that, it is not quite the return that most people think it is.
0:50:45 > 0:50:49So, no, we will stick with this property for some time to come.
0:50:50 > 0:50:52So no doubt this property will be earning Ray
0:50:52 > 0:50:55and his business partner a nice little income
0:50:55 > 0:50:57to add to their growing portfolio.
0:50:57 > 0:50:59And surely after this project,
0:50:59 > 0:51:03Ray can start to think about putting his blow-up bed into storage.
0:51:05 > 0:51:08We are not particularly cash-rich and I think people think
0:51:08 > 0:51:12because we're buying properties at auction that we are particularly
0:51:12 > 0:51:13cash-rich. We're not.
0:51:13 > 0:51:16We have to wait till we remortgage one property before we go
0:51:16 > 0:51:20and buy the next. That is quite a slow process,
0:51:20 > 0:51:22but at the end of the day our objective is to become both
0:51:22 > 0:51:24cash-rich and time-rich.
0:51:37 > 0:51:40We're off now to Alvaston in Derby, where earlier
0:51:40 > 0:51:44I discovered a cracking three-bed semidetached house which didn't tick
0:51:44 > 0:51:48any of the boxes usually associated with Homes Under The Hammer.
0:51:49 > 0:51:54It didn't need a new kitchen, or a new bathroom,
0:51:54 > 0:51:59the decoration was pretty much perfect, there was even a new boiler.
0:52:04 > 0:52:08After hunting high and low, I eventually found something.
0:52:10 > 0:52:13Yes, I am glad I found something that is not quite right with
0:52:13 > 0:52:14this property.
0:52:16 > 0:52:18The grass needs cutting. Ha!
0:52:22 > 0:52:24And that was it, really.
0:52:24 > 0:52:28It went to auction with the guide price of £65,000-plus
0:52:28 > 0:52:32and was bought by Taj, a local estate agent, for £76,000.
0:52:34 > 0:52:36When I came and saw it, I thought, "It is already done,
0:52:36 > 0:52:39"nothing to do, yeah, it's a great rental property."
0:52:42 > 0:52:45So top priority for Taj was to get this ready-made rental
0:52:45 > 0:52:48property occupied and earning a return.
0:52:50 > 0:52:52It's five months since our first visit
0:52:52 > 0:52:55and we're back to see how Taj has got on.
0:52:55 > 0:53:00# Well, the times, they are a-changing. #
0:53:00 > 0:53:04And time is the only thing that's changed for this semidetached
0:53:04 > 0:53:09house, except it looks like Taj has found a tenant for his new property.
0:53:15 > 0:53:19It appears the new tenant has settled in nicely.
0:53:19 > 0:53:20Two bedrooms are occupied
0:53:20 > 0:53:23and the third is being used as a storage space.
0:53:23 > 0:53:26So what was Taj's philosophy for this project?
0:53:29 > 0:53:32So many investors want a ready-made property
0:53:32 > 0:53:34they can basically, you know, let out.
0:53:34 > 0:53:40They haven't got the cumbersome issues of doing the refurbishment.
0:53:40 > 0:53:42Looking back at the things I've done,
0:53:42 > 0:53:46I was probably getting a bit tired with a lot of refurbs
0:53:46 > 0:53:52and I just wanted something effectively that we could let out,
0:53:52 > 0:53:56and achieve the yield that we were looking at, really.
0:53:59 > 0:54:02Taj only had two jobs on his to-do list.
0:54:02 > 0:54:07First was installing a feature fireplace on this bedroom wall.
0:54:07 > 0:54:09We rented the property very quickly,
0:54:09 > 0:54:14so I think we didn't have the time to sort of spend money on the property.
0:54:16 > 0:54:21OK, and the second thing was to cut the grass.
0:54:21 > 0:54:24Come on, Taj, surely you've cut the grass?
0:54:25 > 0:54:30I think when we purchased it, it was close to the winter period,
0:54:30 > 0:54:33so it was very difficult to get out and actually do any gardening.
0:54:33 > 0:54:39So I did suggest to the tenant that it would be very appreciative
0:54:39 > 0:54:42if she could effectively try and do something with the garden
0:54:42 > 0:54:44when the weather was better.
0:54:44 > 0:54:48Well, this is indeed a rare occasion where a property on
0:54:48 > 0:54:53Homes Under The Hammer has had absolutely no work done on it by the new owner
0:54:53 > 0:54:56but everyone is happy.
0:54:56 > 0:54:58The tenants have a smashing three-bed home,
0:54:58 > 0:55:01Taj is getting his monthly rental
0:55:01 > 0:55:03and Taj's lawnmower has one less job to do.
0:55:03 > 0:55:08# If you don't let the green grass fool ya. #
0:55:12 > 0:55:15Time to get two local property experts along to give us
0:55:15 > 0:55:19their opinions on this, well, hassle-free project.
0:55:19 > 0:55:22First impressions, it's a nice, light, airy, well-decorated
0:55:22 > 0:55:27neutral property. Good space, good layout.
0:55:27 > 0:55:29The layout is good.
0:55:29 > 0:55:32It has a ground-floor bathroom, which can put some people off,
0:55:32 > 0:55:35but it does mean that you do get the three bedrooms on the first floor.
0:55:35 > 0:55:38The demand for the property should be good for both the sales market
0:55:38 > 0:55:39and the rental market.
0:55:39 > 0:55:42There are a lot of tenants looking to rent in this area
0:55:42 > 0:55:44and it is a good area for first-time buyers.
0:55:44 > 0:55:47If I bought this property at auction I wouldn't have changed a thing.
0:55:47 > 0:55:50I think the current owner has done exactly the right thing,
0:55:50 > 0:55:54change nothing, mow the back lawn, move the tenants straight in.
0:55:54 > 0:55:58The property definitely appeals to local workers,
0:55:58 > 0:56:00people who perhaps work in the city centre.
0:56:00 > 0:56:03There are great links here in Alvaston to the city centre
0:56:03 > 0:56:06and beyond, and also to the M1 and the airport.
0:56:06 > 0:56:09Properties like this to come up auction are a rarity,
0:56:09 > 0:56:12ready to go, they don't come up very often,
0:56:12 > 0:56:15you do have to keep a good watch over what is coming up.
0:56:17 > 0:56:18And now for the numbers.
0:56:18 > 0:56:21Taj's plan is that this house will remain as part
0:56:21 > 0:56:25of his rental portfolio, so he's not planning on selling.
0:56:25 > 0:56:27However, it would be remiss of me
0:56:27 > 0:56:31not to find out how his investment is doing on the resale market.
0:56:31 > 0:56:35Remember, he spent £76,000 on the purchase
0:56:35 > 0:56:37and nothing on the renovation.
0:56:39 > 0:56:41The sales figure for this property on the open market
0:56:41 > 0:56:45would be between £85,000 and £90,000.
0:56:45 > 0:56:50I would expect to achieve approximately £85,000 for this property.
0:56:50 > 0:56:55That top figure could mean a potential pre-tax profit of £19,000.
0:56:55 > 0:56:57What about rental?
0:56:57 > 0:57:00In the current rental market, I would expect this to rent between
0:57:00 > 0:57:04£475 and £495 per calendar month.
0:57:04 > 0:57:08For rent, I would expect to achieve up to about £500 per calendar month.
0:57:08 > 0:57:10Well, the rental figures are...
0:57:10 > 0:57:12As I always say, the proof is in the pudding.
0:57:12 > 0:57:15We are achieving £550 per calendar month.
0:57:17 > 0:57:22That means the yield on Taj's investment is a very respectable 8.6%.
0:57:22 > 0:57:27Now, while this one appears to have been a very easy-peasy project,
0:57:27 > 0:57:30it's not always like that, so Taj has a word advice.
0:57:31 > 0:57:33Have a contingency.
0:57:33 > 0:57:37I think a lot of developers overlook a contingency
0:57:37 > 0:57:41because things never go to plan when you are doing a development.
0:57:41 > 0:57:43If you have effectively done your homework,
0:57:43 > 0:57:47done your due diligence, established your resale values,
0:57:47 > 0:57:52then there is no reason why your project can't be a success.
0:57:55 > 0:57:57Well, that's it for today's show.
0:57:57 > 0:58:00We will be back with more properties and their owners for you next time.
0:58:00 > 0:58:03We look forward to seeing you then for more Homes Under The Hammer.
0:58:03 > 0:58:05- See you soon, goodbye.- Goodbye. - Goodbye.