0:00:02 > 0:00:04Hello! It's amazing how you can start off by dabbling in property
0:00:04 > 0:00:06but it can quickly take over your life.
0:00:06 > 0:00:08- MARTIN:- Why, yes. There are certainly lots of ups.
0:00:08 > 0:00:12You're your own boss and you get to spend more time with your family.
0:00:12 > 0:00:16Absolutely. So, if you can get a property at the right price, well,
0:00:16 > 0:00:18why not pop down to your local auction house?
0:00:44 > 0:00:48Now, I know we say this a lot but doing your research is key
0:00:48 > 0:00:50- when looking to buy a property at auction.- It certainly is.
0:00:50 > 0:00:53So, did today's buyers follow our advice?
0:00:53 > 0:00:54- DION:- I certainly hope so.
0:00:54 > 0:00:56Let's take a look at what they bought.
0:00:57 > 0:01:03In south London, the windows in this Grade II listed building let the outside in.
0:01:03 > 0:01:06They're single-glazed. You can hear the traffic.
0:01:07 > 0:01:10And in this Welsh terraced house,
0:01:10 > 0:01:13there's an inside window that really needs to be chucked out.
0:01:14 > 0:01:16That needs to be opened up, doesn't it?
0:01:17 > 0:01:20- DION:- But the windows in this West Midlands flat are definitely
0:01:20 > 0:01:22on the right track.
0:01:22 > 0:01:24Let's hope these double-glazed windows do the job.
0:01:26 > 0:01:27Yes, they do.
0:01:28 > 0:01:31All these properties have been sold at auction.
0:01:31 > 0:01:34We'll find out who bought them and what they paid for them
0:01:34 > 0:01:36when they went under the hammer.
0:01:36 > 0:01:37Sold.
0:01:42 > 0:01:45This is the Elephant and Castle in central London.
0:01:45 > 0:01:49The area's unusual name derives from an old coaching inn
0:01:49 > 0:01:50that sat on this site.
0:01:52 > 0:01:58This part of London is currently undergoing a multibillion pound redevelopment scheme.
0:01:58 > 0:02:02There are big plans for a huge new shopping centre
0:02:02 > 0:02:04and thousands of new homes.
0:02:04 > 0:02:07Now, the Elephant also has excellent transport links.
0:02:07 > 0:02:10You've got Tube, rail and bus
0:02:10 > 0:02:13all connecting the area to the City and further afield.
0:02:13 > 0:02:17So, it's no wonder that this area is certainly one to watch.
0:02:19 > 0:02:21# Gonna get myself I'm gonna get myself
0:02:21 > 0:02:24# I'm gonna get myself connected. #
0:02:24 > 0:02:27Being connected is the one thing you won't have to worry about living
0:02:27 > 0:02:31in this area and if you prefer to travel under your own steam,
0:02:31 > 0:02:34it's only a 30 minute walk to the centre of London.
0:02:36 > 0:02:39Well, the property I'm here to see is a studio flat and it's in this
0:02:39 > 0:02:42large, big old complex here.
0:02:42 > 0:02:48Now, this building was designed by a Hungarian modernist architect, Erno Goldfinger.
0:02:48 > 0:02:52And that was back in the '60s and it was once government offices.
0:02:52 > 0:02:57And that was before it was converted now into residential use.
0:02:57 > 0:03:00Now, some may think it's a bit of an ugly eyesore.
0:03:01 > 0:03:04But it's actually Grade II listed
0:03:04 > 0:03:08and it's held up as an excellent example of post-war architecture.
0:03:08 > 0:03:12Interesting. Well, let's head inside and really take a closer look.
0:03:19 > 0:03:21Despite sharing his name with a Bond villain,
0:03:21 > 0:03:25Goldfinger's creation is mercifully free of missile silos,
0:03:25 > 0:03:27moon buggies and tanks full of hungry sharks.
0:03:29 > 0:03:31What was originally the Department Of Health
0:03:31 > 0:03:35is now a complex housing over 450 apartments,
0:03:35 > 0:03:39all housed in interconnecting blocks surrounding a central courtyard
0:03:39 > 0:03:44in which sits an Oriental style communal garden. Very peaceful.
0:03:47 > 0:03:49Now, the flats share other facilities -
0:03:49 > 0:03:52a 24-hour concierge service, ample on-site car parking.
0:03:52 > 0:03:55There is even a pool and a gym
0:03:55 > 0:03:58although the pool is undergoing refurbishment at present.
0:04:00 > 0:04:04Up for auction at a guide price of £210,000,
0:04:04 > 0:04:08the studio flat I'm here to see is on the second floor
0:04:08 > 0:04:11and you can choose to either take the lift or the stairs.
0:04:13 > 0:04:16So, first impressions on the inside, well,
0:04:16 > 0:04:19straight away to the right here there's a little bathroom.
0:04:19 > 0:04:22You've got some storage... Oh, wow!
0:04:22 > 0:04:25That's a big boiler. My goodness.
0:04:25 > 0:04:28I'm just wondering if you could relocate that or get something
0:04:28 > 0:04:31a bit smaller because it eats into all the cupboard space in there.
0:04:31 > 0:04:35And, yeah, well, there's studio flats and there's studio flats.
0:04:35 > 0:04:39And this is a small studio flat. You've got storage here.
0:04:39 > 0:04:41And talking of storage...
0:04:41 > 0:04:44storage heaters so I don't think there's any gas in this building
0:04:44 > 0:04:47so you've got to contend with storage heaters but there
0:04:47 > 0:04:51are some really good ones these days and they do work really efficiently.
0:04:51 > 0:04:53So, well, it's not the biggest room I've ever seen
0:04:53 > 0:04:56and round here the kitchen.
0:04:56 > 0:04:59It's as if this wall is in the way.
0:04:59 > 0:05:02I'm just wondering if this space could be reconfigured.
0:05:02 > 0:05:06But I think what I like about the property is this.
0:05:06 > 0:05:07Just have a look out here. Now, look.
0:05:07 > 0:05:12You really, really know you're living in London living here.
0:05:12 > 0:05:15You look out of this huge window - which by the way,
0:05:15 > 0:05:18if you don't like these, tough, you can't change them,
0:05:18 > 0:05:20this building is Grade II listed
0:05:20 > 0:05:23and these windows are here to stay - they're single-glazed,
0:05:23 > 0:05:25you can hear the traffic.
0:05:25 > 0:05:28You can also hear and see the train.
0:05:28 > 0:05:32You can see London red buses, you can hear sirens, I mean,
0:05:32 > 0:05:35this is what it's like living in the heart of London.
0:05:35 > 0:05:38Takes about 30 seconds to get to the Tube station, there's all
0:05:38 > 0:05:42the bridges out there, there's nightlife, it's all going on.
0:05:42 > 0:05:44I mean, this really is a fantastic community
0:05:44 > 0:05:46if this is the type of London living you want.
0:05:49 > 0:05:50So, that's about it.
0:05:50 > 0:05:54A loo with a shower, kitchen area and a living room/bedroom.
0:05:55 > 0:06:01# I'm coming up! So you better get this party started. #
0:06:02 > 0:06:06But if you're the kind of person who shouts, "Party back at mine,"
0:06:06 > 0:06:09then this could be slightly undersized for your needs.
0:06:09 > 0:06:11But if you just need a place to eat or sleep
0:06:11 > 0:06:15that's close to the heart of London, this is ideal.
0:06:15 > 0:06:19Now, before you get too excited about London living, there are
0:06:19 > 0:06:24a few things to consider when buying a flat in a tower block like this.
0:06:24 > 0:06:27Getting a mortgage, well, it can sometimes be a bit tricky.
0:06:27 > 0:06:29A lot of high-street lenders,
0:06:29 > 0:06:33they prefer flats in buildings of five floors or under.
0:06:33 > 0:06:35And this building, well,
0:06:35 > 0:06:37it's definitely well over that.
0:06:39 > 0:06:42As well as the height of the building,
0:06:42 > 0:06:46there's another factor to consider when trying to secure a loan.
0:06:47 > 0:06:51Size does matter when it comes to mortgages.
0:06:51 > 0:06:55Now, a lot of companies will not lend on studios, full stop.
0:06:55 > 0:06:58And others specify a minimum square footage requirement,
0:06:58 > 0:07:01commonly around 30 square metres.
0:07:01 > 0:07:04So, if you need a mortgage to be able to buy a flat,
0:07:04 > 0:07:06especially a studio flat like this,
0:07:06 > 0:07:09you're going to have to do your research and never assume
0:07:09 > 0:07:12mortgage lenders will love your new pad as much as you do.
0:07:15 > 0:07:18With a leasehold property, it's important to check the duration
0:07:18 > 0:07:23of the lease as this can impact on the range of mortgages available.
0:07:23 > 0:07:26In this case, there is 980 years left to run.
0:07:26 > 0:07:29Should be OK there, then.
0:07:29 > 0:07:31So, let's hear what a local property expert
0:07:31 > 0:07:34thought of the accommodation on offer in this '60s tower block.
0:07:37 > 0:07:40Good property, plenty of scope for improvement.
0:07:40 > 0:07:44I personally would put... Look to potentially put a wall bed in.
0:07:44 > 0:07:48Just because it gives the option, the fact that you're not actually
0:07:48 > 0:07:51sort of eating or potentially entertaining within your bedroom.
0:07:51 > 0:07:53I think that that's key.
0:07:53 > 0:07:56The kitchen and bathroom, obviously, could be upgraded
0:07:56 > 0:07:59and you'll get the benefits from those.
0:08:01 > 0:08:04And with rental properties being popular in London,
0:08:04 > 0:08:06what could the new owner expect to achieve?
0:08:07 > 0:08:12You'd be looking in the region of £1,100-£1,200 per calendar month
0:08:12 > 0:08:15depending on the level of spec. In terms of sale value,
0:08:15 > 0:08:21you're looking anywhere from between £250,000-£275,000.
0:08:23 > 0:08:26You'd certainly be living the high life if you buy this studio flat.
0:08:26 > 0:08:29But the apartment, well, it needs to be dragged out of the past
0:08:29 > 0:08:32and made so much more up-to-date on the inside.
0:08:32 > 0:08:37But you might also need to do your research to find a mortgage provider to buy the property.
0:08:37 > 0:08:40So, let's find out who bid for this bijoux apartment
0:08:40 > 0:08:41when we head to auction.
0:08:43 > 0:08:45First-floor self-contained flat, gated parking,
0:08:45 > 0:08:48communal leisure facilities. Great investment block, this one.
0:08:48 > 0:08:51Where do you want to start me? Shall we say 180?
0:08:51 > 0:08:54£180,000, I thought so, thank you. 180 I'll take from you.
0:08:54 > 0:08:56Can I say 182?
0:08:56 > 0:08:57182, 184,
0:08:57 > 0:08:58186, 188,
0:08:58 > 0:08:59190...
0:09:00 > 0:09:04Well, this was a popular lot with the bids coming in thick and fast.
0:09:04 > 0:09:08We rejoin the auction at 222,000.
0:09:09 > 0:09:11222?
0:09:11 > 0:09:13Yes, no? 222? 222.
0:09:13 > 0:09:15223, 224,
0:09:15 > 0:09:17225, 226?
0:09:19 > 0:09:21Shaking your head at me. 226, come back in.
0:09:21 > 0:09:25Otherwise, at the front, at £225,000 I have.
0:09:25 > 0:09:27It's against three of you now. 226, another thousand?
0:09:27 > 0:09:29Otherwise 225 I have.
0:09:29 > 0:09:31For the first, be quick,
0:09:31 > 0:09:32225 for the second...
0:09:33 > 0:09:38Third and final time, we all done at £225,000?
0:09:38 > 0:09:39Sold.
0:09:41 > 0:09:45Last man standing was Harry from nearby Purley who, with that final
0:09:45 > 0:09:51bid of 225,000, walked away with his first ever auction purchase.
0:09:51 > 0:09:54So, what's he going to do with it? We met up with him to find out.
0:09:56 > 0:09:58# Come on! #
0:10:00 > 0:10:02- Harry, congratulations.- Thank you.
0:10:02 > 0:10:05If anybody wants to know what it's like living in the centre
0:10:05 > 0:10:08- of London, this flat says it all, doesn't it?- Sure does.
0:10:08 > 0:10:11I mean, you look out of the windows and you can see the red buses.
0:10:11 > 0:10:12It's really London living here.
0:10:12 > 0:10:15You can see a train station just round the corner.
0:10:15 > 0:10:17You can hear the train station.
0:10:17 > 0:10:19So, why did you want to buy this property
0:10:19 > 0:10:22- and how well do you know the area? - I know the area quite well.
0:10:22 > 0:10:26I think when we were young we used to pass Elephant and Castle quite a lot.
0:10:26 > 0:10:28Plus my son is living on the seventh floor.
0:10:28 > 0:10:31- Your son is living in the building? - In the building.- Already?!
0:10:31 > 0:10:32He's renting it.
0:10:32 > 0:10:35- Any chance your son might want to have this flat for himself?- Not yet.
0:10:35 > 0:10:37He's got another one year to go.
0:10:40 > 0:10:44Despite his son living in the same building, Harry was blissfully
0:10:44 > 0:10:48unaware of its listed status and the restrictions that go with it.
0:10:48 > 0:10:50When we bought the property I did look at the windows
0:10:50 > 0:10:54and think, "Oh, the windows are the same type."
0:10:54 > 0:10:57So, I had something going there that we won't be able to change the windows.
0:10:57 > 0:10:59- You can't do an awful lot to it.- Not a lot.
0:10:59 > 0:11:02Does it bother you that you can't change the windows because
0:11:02 > 0:11:05you can hear the traffic and you can hear the train?
0:11:05 > 0:11:08Not really, because I won't be living here.
0:11:08 > 0:11:10- So it's not going to bother you! - Not really, no.
0:11:13 > 0:11:16Harry has formed a partnership with his friend Rajesh
0:11:16 > 0:11:19in order to take on his first project.
0:11:19 > 0:11:22With a career history that includes being a newsagent,
0:11:22 > 0:11:24a dry cleaner and selling parts for motorbikes,
0:11:24 > 0:11:28is property development slightly outside his comfort zone?
0:11:29 > 0:11:32- We built a hotel in Goa in India.- Wow.
0:11:32 > 0:11:37And that's a 105-bedroom property. So that we started from the project, up.
0:11:37 > 0:11:40I wasn't much involved in it, though I was monitoring things,
0:11:40 > 0:11:44- but physical, no.- I mean, gosh, a hotel to a studio flat!
0:11:44 > 0:11:47This is going to be so easy for you, isn't it?
0:11:47 > 0:11:50Different people, different countries so, attitude
0:11:50 > 0:11:52and tradingwise are different.
0:11:52 > 0:11:55- But do you feel confident?- Oh, yeah, definitely. No doubt about that.
0:11:55 > 0:11:57So what are you going to do to really turn it around
0:11:57 > 0:12:01- and make it worth more money? - It needs to be...
0:12:01 > 0:12:03We're going to change the layout up here.
0:12:03 > 0:12:06Going to knock the kitchen and bathroom down,
0:12:06 > 0:12:10we're going to turn it around. Put the bathroom on that far wall.
0:12:10 > 0:12:13Kitchen backing onto it. So, that way I think
0:12:13 > 0:12:16whoever buys this property will get slightly bigger area.
0:12:16 > 0:12:18- Because at the moment it looks a bit cramped.- Yeah.
0:12:18 > 0:12:23- It'd be nice to have a more open-plan kitchen living space, wouldn't it?- Correct.
0:12:23 > 0:12:27And have you checked out whether or not you can move certain walls
0:12:27 > 0:12:30and move and change and change layout?
0:12:30 > 0:12:32I haven't checked that but I think...
0:12:32 > 0:12:35When I got the builders in, it's all stud walls here.
0:12:35 > 0:12:37- So, I think it shouldn't be much of a problem.- Right.
0:12:37 > 0:12:38Being an old office block.
0:12:38 > 0:12:40Sometimes it's all dependent on the freeholder
0:12:40 > 0:12:42and getting the permissions.
0:12:42 > 0:12:45- OK. Something I need to check up on that.- Yeah.
0:12:45 > 0:12:46You might need to check
0:12:46 > 0:12:50because that's really vital just to make sure you do get permissions.
0:12:50 > 0:12:54- Yeah.- So, how much are you intending on spending here?
0:12:54 > 0:12:57- Oh... Top end, we're looking at about 15,000.- OK.
0:12:58 > 0:13:01But about, I think, if I can do it at 12,
0:13:01 > 0:13:04- but we don't want to cut the corners. - OK, £12,000-£15,000.
0:13:04 > 0:13:07And how long do you think it's going to take you to convert this?
0:13:07 > 0:13:09I'd be looking at about four weeks.
0:13:09 > 0:13:11And are you going to be involved in the work?
0:13:11 > 0:13:14- Workwise, no physical work, no. - So, you've got guys in to do it?
0:13:14 > 0:13:15Guys coming in.
0:13:15 > 0:13:18How much would you like to market this property for,
0:13:18 > 0:13:21how much do you think you could get once you've done your work to it?
0:13:21 > 0:13:24- I think we should get at least 280. - Wow.
0:13:24 > 0:13:26I can't wait to see what you do to this place.
0:13:26 > 0:13:29I hope you clean the windows, for starters.
0:13:29 > 0:13:31Yeah, get my son to come and clean it.
0:13:31 > 0:13:33We'll be back to see how you get on soon. Thank you very much.
0:13:33 > 0:13:36- You're most welcome.- Well done. - Thank you.
0:13:36 > 0:13:39Buying this little studio flat at auction and doing it up,
0:13:39 > 0:13:43well, it could mark the start of a new property developing career for Harry.
0:13:43 > 0:13:47But how will his first project go and will it run smoothly?
0:13:47 > 0:13:50Join me later in the programme and you can find out how Harry
0:13:50 > 0:13:54gets on with his little Elephant and Castle flat later in the programme.
0:13:59 > 0:14:01Built into the side of a mountain,
0:14:01 > 0:14:06Pontygwaith in south Wales is certainly not lacking in amazing views.
0:14:06 > 0:14:09As with many of the settlements round here,
0:14:09 > 0:14:11it's an old mining village.
0:14:11 > 0:14:15The name itself, Pontygwaith, actually means bridge to work and the bridge
0:14:15 > 0:14:20in question still remains and is a Grade II listed structure.
0:14:20 > 0:14:21Isn't it lovely?
0:14:23 > 0:14:25Well, just a short walk from the main shopping street
0:14:25 > 0:14:33is the property I'm here to see. £19,000 plus was the guide price.
0:14:33 > 0:14:38For this. It's a two-bedroom mid-terrace. Let's have a look.
0:14:43 > 0:14:47So, with that low guide price... Oh, squeaky door!
0:14:47 > 0:14:51..I guess your expectations have got to be set fairly low.
0:14:51 > 0:14:54But, you know what? It's not a bad start. Little entrance area there.
0:14:54 > 0:14:57A porch, keep the noise and the cold out.
0:14:57 > 0:14:59Front living room, a few nice little features,
0:14:59 > 0:15:01I like the little alcoves.
0:15:01 > 0:15:03Definitely a dated fireplace, but, I don't know,
0:15:03 > 0:15:05it has a certain charm to it.
0:15:05 > 0:15:08- Doesn't smell too damp although... - HE CLEARS HIS THROAT
0:15:08 > 0:15:12..having said that, some fairly serious signs of damp there.
0:15:12 > 0:15:16Stairs up to your bedrooms there. Into your rear sort of sitting room.
0:15:16 > 0:15:22And somebody's gone partial way to creating a knock-through.
0:15:22 > 0:15:26That needs to be opened up, doesn't it? More signs of damp there.
0:15:26 > 0:15:29But it's a reasonable size space and you've got the open fires.
0:15:29 > 0:15:31Doesn't look like there's any central heating
0:15:31 > 0:15:34so that's something you're going to have to budget for.
0:15:34 > 0:15:36But then through to... What?
0:15:36 > 0:15:38What do you think?
0:15:38 > 0:15:43What's bound to be here? You know, it's a k-k-kitch...
0:15:43 > 0:15:46No, it's not. It's not the kitchen.
0:15:46 > 0:15:48This is where you'd expect the kitchen to be, isn't it?
0:15:48 > 0:15:51But no, it's like a third living room area.
0:15:51 > 0:15:53The kitchen is actually out there
0:15:53 > 0:15:55in what looks like a sort of extension bit.
0:15:55 > 0:15:58What were they thinking?
0:15:58 > 0:16:02Clearly, your first job is knock down that wall or use
0:16:02 > 0:16:06that as some kind of utility room, convert this into your kitchen.
0:16:07 > 0:16:10Pretty obvious. The good news, though, doesn't look like there's
0:16:10 > 0:16:12a bathroom down here which means there might be one upstairs.
0:16:14 > 0:16:18Well, the downstairs layout is not quite what I expected,
0:16:18 > 0:16:20with three reception rooms
0:16:20 > 0:16:23and the kitchen tucked away at the very back.
0:16:23 > 0:16:27Obviously, that damp does need to be checked out but I can see
0:16:27 > 0:16:30the potential to create a lovely big family dining-kitchen.
0:16:32 > 0:16:37Well, upstairs, what have we got up here? Two reasonable sized bedrooms.
0:16:37 > 0:16:39That one, well, it's not a bad size.
0:16:39 > 0:16:41You'd want to put double-glazing in, for sure,
0:16:41 > 0:16:43because there's going to be some road noise.
0:16:43 > 0:16:44The other one, slightly bigger.
0:16:44 > 0:16:48But, you know, pretty decent for the size of house.
0:16:48 > 0:16:51What you don't expect is...
0:16:51 > 0:16:52the bathroom.
0:16:52 > 0:16:56For a start, it's where you'd hope it would be, as in upstairs.
0:16:56 > 0:16:59Secondly, it's a really good size.
0:16:59 > 0:17:01# Guacamole
0:17:05 > 0:17:07# Guacamole. #
0:17:07 > 0:17:11The avocado bathroom suite may well have passed its heyday
0:17:11 > 0:17:16but what is in fashion is finding room for an extra bedroom.
0:17:16 > 0:17:19I'm just going to contradict what I said earlier
0:17:19 > 0:17:23but you could move the bathroom downstairs and create a third bedroom
0:17:23 > 0:17:26there which would definitely make it more appealing to families.
0:17:26 > 0:17:29Or save yourself the hassle of replumbing and expand
0:17:29 > 0:17:34it into the loft upstairs, provided it meets building regulations.
0:17:34 > 0:17:37Something to think about. But let's have a look outside first.
0:17:40 > 0:17:43Well, through the kitchen and out the back
0:17:43 > 0:17:45and you've got a real hotchpotch.
0:17:45 > 0:17:50Not only have you got this sort of totally dreadful kitchen bit
0:17:50 > 0:17:53itself, an extension which was obviously built to house that
0:17:53 > 0:17:55little room which should have been the kitchen.
0:17:55 > 0:17:58From here you can also see the state of the roof.
0:17:58 > 0:18:02The bit where there should be lead going in to the main part
0:18:02 > 0:18:05of the property itself, that's going to cause a problem with damp.
0:18:05 > 0:18:07That probably explains why all those walls are so bad.
0:18:07 > 0:18:10But you've got this area here which is...
0:18:10 > 0:18:12We've got a downstairs loo, you've got a little storage area.
0:18:12 > 0:18:16I mean, it could be quite useful but at the moment it's a bit of a mess.
0:18:16 > 0:18:21But then up those stairs to a completely bonkersly overgrown garden.
0:18:21 > 0:18:24Well, at least you've got the space...
0:18:24 > 0:18:26looking on the bright side.
0:18:26 > 0:18:27# And...
0:18:28 > 0:18:33# Always look on the bright side of life! #
0:18:33 > 0:18:37Keep laughing as you go because, with a 19 grand guide price,
0:18:37 > 0:18:41and potential to expand out here and upstairs,
0:18:41 > 0:18:44this one could certainly put a smile on your face.
0:18:44 > 0:18:47But it's always worth remembering that it can be very difficult
0:18:47 > 0:18:51to get a mortgage on properties under £20,000.
0:18:51 > 0:18:55Let's hear what a local property expert makes of this two-bedroom
0:18:55 > 0:18:56mid-terrace.
0:18:56 > 0:19:00My first impressions of the property are that it does need
0:19:00 > 0:19:01extensive renovation.
0:19:01 > 0:19:06I would estimate you'd have to spend between £25,000-£30,000
0:19:06 > 0:19:09to get it into a really nice condition.
0:19:09 > 0:19:11Get it at anything like the guide price
0:19:11 > 0:19:16and that could be a total £49,000 spend.
0:19:16 > 0:19:18What would the agent do to add value?
0:19:19 > 0:19:22If this was my house, I would possibly look to bring
0:19:22 > 0:19:27the bathroom back downstairs to utilise that room as a third bedroom.
0:19:29 > 0:19:31To get the full value of the property.
0:19:31 > 0:19:34Obviously, you'd have to make some sort of allowance to put
0:19:34 > 0:19:36the bathroom downstairs
0:19:36 > 0:19:40but with the additional room to the rear I think you could do that.
0:19:40 > 0:19:45So, what price could it attract for resale as a two-bed?
0:19:45 > 0:19:47Once renovated, I would look to put the property on the market
0:19:47 > 0:19:52for the £65,000 if it was left as a two-bedroom property.
0:19:52 > 0:19:54And a three-bed?
0:19:56 > 0:19:58I would look to put the property on the market for...
0:20:00 > 0:20:01..£75,000.
0:20:03 > 0:20:07So, maybe £10,000 extra with that third bedroom.
0:20:07 > 0:20:09The agent also thinks the loft conversion,
0:20:09 > 0:20:12should you get planning permission, is a good idea.
0:20:12 > 0:20:16So, what would an extra bedroom do to rentals?
0:20:16 > 0:20:18If the property remained as a two-bedroom property
0:20:18 > 0:20:23you should be able to achieve around £375 per calendar month.
0:20:23 > 0:20:26If the loft extension was carried out
0:20:26 > 0:20:32then you should be able to achieve between £400-£425 per calendar month.
0:20:33 > 0:20:35Well, there's obviously work to be done.
0:20:35 > 0:20:38A bit of the roof to sort, that damp issue
0:20:38 > 0:20:40definitely needs addressing.
0:20:40 > 0:20:42But other than that, for that guide price,
0:20:42 > 0:20:45I don't think you can go too far wrong with this one.
0:20:45 > 0:20:47Let's see who agreed when it went under the hammer.
0:20:48 > 0:20:51Lot number ten, we have a telephone bid.
0:20:51 > 0:20:55Start me at 19, start me at 15, if you like. Put a hand up at 15.
0:20:55 > 0:20:58Thank you, 15 over there. At 15. At 15, now. 16 can I see?
0:20:58 > 0:21:0016, 17,
0:21:00 > 0:21:0318, 19, 20?
0:21:03 > 0:21:0520? 20, no. At 19 I've got.
0:21:05 > 0:21:07At 19. 20 now I'm looking for.
0:21:07 > 0:21:1120,000, thank you. 20. 21, do they want to on the phone?
0:21:11 > 0:21:1321? 21, 22?
0:21:13 > 0:21:1422, 23,
0:21:14 > 0:21:1624, 25? 25.
0:21:16 > 0:21:1926, 27,
0:21:19 > 0:21:2028?
0:21:20 > 0:21:2328? At 27 on the telephone...
0:21:23 > 0:21:2528, thank you, 28.
0:21:25 > 0:21:2629 to you.
0:21:26 > 0:21:2830, do you want to? 30.
0:21:28 > 0:21:3031 now? 31?
0:21:30 > 0:21:33I've got 30 there right at the back in the centre.
0:21:33 > 0:21:36At £30,000, you're out on the phone.
0:21:36 > 0:21:39At £30,000 then for the first time,
0:21:39 > 0:21:40second time,
0:21:40 > 0:21:42third and last time at £30,000...
0:21:44 > 0:21:46Sold. It's all yours, well done, number?
0:21:46 > 0:21:51At £30,000, the successful bidder obscured at the back is Cezar.
0:21:51 > 0:21:56Originally from Romania, Cezar has lived in the UK for seven years
0:21:56 > 0:21:59and this is his first property auction buy.
0:21:59 > 0:22:02I went along to meet mighty Cezar
0:22:02 > 0:22:03and find out his plans.
0:22:05 > 0:22:08# Oh, hail, Caesar
0:22:09 > 0:22:10# Hail!
0:22:10 > 0:22:12# Hail! #
0:22:12 > 0:22:15- Cezar, good to meet you. - Thanks a lot.- Congratulations.
0:22:15 > 0:22:18Tell me why you wanted to buy this house.
0:22:18 > 0:22:20It was very cheap, really.
0:22:20 > 0:22:22That was the only reason.
0:22:22 > 0:22:25And, also, it's very easy for me to travel from London,
0:22:25 > 0:22:26I live in West London.
0:22:26 > 0:22:28I jump on M4 and I'm over here.
0:22:28 > 0:22:30I love that! Very easy to get here.
0:22:30 > 0:22:34I thought you were going to say you lived...worked in Cardiff or something!
0:22:34 > 0:22:36- You're from London.- I am.
0:22:36 > 0:22:38So, compared to the prices in...
0:22:38 > 0:22:42- well, any part of London, this must just seem ridiculously cheap.- Yes.
0:22:42 > 0:22:43- It's true.- Right.
0:22:43 > 0:22:46- Have you done property before?- No.
0:22:46 > 0:22:48I just have a team and we do refurbishment
0:22:48 > 0:22:51and stuff like that, locksmith, handyman jobs.
0:22:51 > 0:22:53Right. So that's what you do?
0:22:53 > 0:22:58- So you've got a bit of DIY, slightly more than DIY experience.- Yes.
0:22:58 > 0:23:01So did you know the area before you bought the house here?
0:23:01 > 0:23:04- No, not really. - Had you been before you bought it?
0:23:04 > 0:23:07I'd just seen it from outside, really, for a minute.
0:23:07 > 0:23:10- Before the auction - in the same day.- Oh, wow.
0:23:10 > 0:23:13It looked like a very solid house and I decided to go for it.
0:23:13 > 0:23:17- So when was the first time you saw inside?- Today.- Oh, today, wow!
0:23:17 > 0:23:20- So, what do you think? - It's very good, looks very good.
0:23:20 > 0:23:23Yeah, easy to do, no major problems.
0:23:23 > 0:23:25We'll see.
0:23:25 > 0:23:28So tell me what you are going to do to sort it out.
0:23:28 > 0:23:32First of all I'm planning to have a boiler, a combi boiler installed.
0:23:32 > 0:23:33That's the main.
0:23:33 > 0:23:36After that I'm going to stay in the property
0:23:36 > 0:23:38cos I can travel to London every day.
0:23:38 > 0:23:40It will be from Monday to Saturday, so we need heating.
0:23:40 > 0:23:43- Just planning to knock a couple of walls down.- Which ones?
0:23:43 > 0:23:46- One between the two rooms in front. - Oh, yes, OK.
0:23:46 > 0:23:48All the paper...peel off,
0:23:48 > 0:23:50plastering...
0:23:50 > 0:23:52Bathroom, a new bathroom.
0:23:52 > 0:23:55It's a big bathroom, so maybe we can go for a shower, as well,
0:23:55 > 0:23:57in one of the corners instead of the boiler.
0:23:57 > 0:23:58A new kitchen.
0:23:58 > 0:24:02How are you going to integrate that little area which is currently the kitchen?
0:24:02 > 0:24:06I'm just planning to knock the wall down between the kitchen and the room next door.
0:24:06 > 0:24:09Some...steel supporting beams and stuff like that.
0:24:09 > 0:24:11So probably can open it up.
0:24:11 > 0:24:13We'll see, I have to think about it.
0:24:13 > 0:24:16- And then put a new roof on that area?- A new roof, yes.
0:24:16 > 0:24:18Well, that would be very nice.
0:24:18 > 0:24:21With this knocked through and that knocked through, that would be terrific.
0:24:21 > 0:24:24- What about the damp? - It's probably rising damp.
0:24:24 > 0:24:25I'm not very good at this,
0:24:25 > 0:24:29but one of my guys is very good at dealing with this kind of stuff.
0:24:29 > 0:24:33So Cezar is keen to reconfigure the space in here
0:24:33 > 0:24:36and thinks that it should take three months.
0:24:36 > 0:24:40And he does have one other major layout change in mind.
0:24:40 > 0:24:42He's going to expand into the loft.
0:24:45 > 0:24:48We just have to have a chat with a local agent, something,
0:24:48 > 0:24:50- see what they can... - And if it's worth doing...
0:24:50 > 0:24:52And who's going to do the work?
0:24:52 > 0:24:55Mostly myself, probably a guy or two.
0:24:55 > 0:24:59And how are you going to work that with your full-time job?
0:24:59 > 0:25:00Um...
0:25:00 > 0:25:03Now it's a little bit hard in the winter time, with building jobs
0:25:03 > 0:25:06and stuff like that, so probably going to concentrate on this one.
0:25:06 > 0:25:09- Were you happy with the price you paid at the auction?- It's OK.
0:25:09 > 0:25:11I can pay less, but...
0:25:11 > 0:25:13That's fine. £30,000 is OK.
0:25:13 > 0:25:16So what's the budget for the work?
0:25:16 > 0:25:19- £10,000 I guess.- OK.- Yes.
0:25:19 > 0:25:21That's quite a lot of knocking around walls and things
0:25:21 > 0:25:23- for that money, but...- Yes.
0:25:23 > 0:25:27- But you doing the work, then it's going to be a bit cheaper, eh? - I think so.
0:25:27 > 0:25:30So £40,000 will be the amount of money you spend
0:25:30 > 0:25:32if you stick to that budget.
0:25:32 > 0:25:35How much do you think you might be able to sell it for?
0:25:35 > 0:25:37I'm not sure yet, probably between 70,000 and 80,000,
0:25:37 > 0:25:39I think.
0:25:39 > 0:25:42And then, if it goes well, will you buy more in this part of Wales?
0:25:42 > 0:25:46I preferred this area, very nice area and I hate London.
0:25:46 > 0:25:50So I'm looking for an area to move on in the next couple of years.
0:25:50 > 0:25:53Well, listen, congratulations, good luck with it.
0:25:53 > 0:25:55Look forward to seeing how you get on.
0:25:55 > 0:25:56Thank you.
0:25:56 > 0:26:01So travelling a long way from home for his renovation project.
0:26:01 > 0:26:03He has got a lot of work on,
0:26:03 > 0:26:07so will it be salad days for Cezar when we come back?
0:26:07 > 0:26:09You can find out later in the show.
0:26:11 > 0:26:12Still to come...
0:26:12 > 0:26:15In the West Midlands, I uncover a potential problem.
0:26:15 > 0:26:18As I pull it back, I can see the signs
0:26:18 > 0:26:20of a leak of some sort...
0:26:22 > 0:26:28And back in Pontygwaith, we found out what Cezar did with all his living rooms.
0:26:28 > 0:26:29It was a massive job.
0:26:29 > 0:26:30I think it looks nice.
0:26:37 > 0:26:39It's time now to return to the hustle and bustle
0:26:39 > 0:26:42of the Elephant and Castle in London.
0:26:42 > 0:26:44# Towers of London
0:26:44 > 0:26:46# When they had built you
0:26:46 > 0:26:51# Did you watch over the men who fell? #
0:26:51 > 0:26:55Earlier I got a taste of the high life in this 1960s
0:26:55 > 0:26:58Grade II listed tower block.
0:26:58 > 0:27:01Yes, well, there are studio flats and there are studio flats.
0:27:01 > 0:27:03And this is a small studio flat.
0:27:06 > 0:27:08Not the most spacious of properties, I'll admit,
0:27:08 > 0:27:11but somewhere to hang your hat, brush your teeth
0:27:11 > 0:27:13and rest your weary head after a day at the office.
0:27:13 > 0:27:17Being a listed building, well, there wasn't much you could change.
0:27:19 > 0:27:21These windows are here to stay.
0:27:21 > 0:27:25They're single glazed, you can hear the traffic.
0:27:25 > 0:27:28You can also hear and see the train
0:27:28 > 0:27:29You can hear sirens,
0:27:29 > 0:27:32I mean, this is what it's like living in the heart of London.
0:27:34 > 0:27:36Well, traffic noise wasn't an issue for Harry,
0:27:36 > 0:27:39who brought this bijou residence for £225,000.
0:27:41 > 0:27:43Does it bother you that you can hear the traffic
0:27:43 > 0:27:45and you can hear the train?
0:27:45 > 0:27:47Not really, because I won't be living here. SHE LAUGHS
0:27:49 > 0:27:51Teaming up with a business partner,
0:27:51 > 0:27:54Harry's plan was to refurbish quickly and then sell on.
0:27:56 > 0:27:59It's been almost two months since we were last here,
0:27:59 > 0:28:00so what's Harry been up to?
0:28:14 > 0:28:17Well, it looks like Harry has been a busy boy.
0:28:17 > 0:28:19This is looking very nice indeed.
0:28:19 > 0:28:22Who better than the man himself to give us a guided tour?
0:28:25 > 0:28:28Oh, I don't know if you remember when you came in last time,
0:28:28 > 0:28:31there used to be an old storage unit up here...
0:28:31 > 0:28:33So we have taken that one out,
0:28:33 > 0:28:37taken the old storage units out from there to create more space here...
0:28:38 > 0:28:40Fitted a brand-new bathroom,
0:28:40 > 0:28:43new shower, new cubicle, sink, toilet.
0:28:43 > 0:28:46And we've put in a brand-new bed,
0:28:46 > 0:28:49which turns into a study kind of area.
0:28:49 > 0:28:52So whoever comes in, they can just walk in tomorrow morning
0:28:52 > 0:28:54and start living.
0:28:54 > 0:28:57And I'm quite pleased with the work which we carried out.
0:29:00 > 0:29:03Harry's plan of reorganising the internal space
0:29:03 > 0:29:07was met with firm refusal from the building's owners -
0:29:07 > 0:29:11a hazard when buying leasehold properties such as this.
0:29:11 > 0:29:14This space-saving bed IS one of the few things allowed,
0:29:14 > 0:29:17but he did manage to take down the partition wall in the kitchen.
0:29:19 > 0:29:22There used to be a small wall coming up, taken that out,
0:29:22 > 0:29:25put new cooker in there,
0:29:25 > 0:29:28new washing machine, integrated granite top,
0:29:28 > 0:29:32so it gets more light within the unit itself.
0:29:32 > 0:29:34And I think it's turned out quite great.
0:29:34 > 0:29:37My wife is threatening to come and stay here!
0:29:40 > 0:29:43Well, your wife obviously has impeccable taste, Harry,
0:29:43 > 0:29:45but she'll have to join the queue,
0:29:45 > 0:29:48as I suspect she won't be the only one knocking at the door.
0:29:50 > 0:29:52# Someone knocking at the door
0:29:53 > 0:29:55# Somebody ringing the bell. #
0:29:57 > 0:30:00Harry kept to his budget of £15,000
0:30:00 > 0:30:03and his builders managed to keep to the original schedule,
0:30:03 > 0:30:05completing the job in four weeks.
0:30:05 > 0:30:09Yes, it may be small, but I think you'll agree it's perfectly formed.
0:30:14 > 0:30:16Time to get some opinions.
0:30:16 > 0:30:19And valuations from two local estate agents.
0:30:19 > 0:30:20One at a time, fellas.
0:30:22 > 0:30:24Really nice. Very, very bright and airy.
0:30:24 > 0:30:27The buyer has done a remarkable refurbishment on the property.
0:30:27 > 0:30:30Has used the space really, really well.
0:30:30 > 0:30:33Studios in this area particularly,
0:30:33 > 0:30:36demand is very high both from investors and, obviously,
0:30:36 > 0:30:39first-time buyers as well due to its proximity to the city.
0:30:39 > 0:30:41Yeah, it's very, very contemporary.
0:30:41 > 0:30:43Very minimalistic, which is what people like.
0:30:43 > 0:30:46They don't want to have to come in somewhere and just completely redo it.
0:30:46 > 0:30:50They want to just come in, put their suitcases down and live.
0:30:50 > 0:30:53With £225,000 going on the purchase and then
0:30:53 > 0:31:00a further £15,000 on renovation, Harry's total spend is 240,000.
0:31:00 > 0:31:02Now, his intention is to put up the flat for sale.
0:31:02 > 0:31:04But if he did decide to rent it out,
0:31:04 > 0:31:07what's the going rate in this area?
0:31:09 > 0:31:12I think at the moment, in this market, the vendor could
0:31:12 > 0:31:18realise a figure of around about £1,150 per calendar month.
0:31:18 > 0:31:19In terms of rental,
0:31:19 > 0:31:23you'd be looking aroundabout £1,100 per calendar month.
0:31:24 > 0:31:28Wow, living the high life, well, it doesn't come cheap.
0:31:28 > 0:31:29So, what about sales values?
0:31:31 > 0:31:35In terms of the property value since the work's been done,
0:31:35 > 0:31:42I would suggest a marketing price between £275,000 and £285,000.
0:31:42 > 0:31:46I would value this property at between 265 and £270,000.
0:31:48 > 0:31:52With £20,000 between the lower and upper valuations, it could mean
0:31:52 > 0:31:56a pre-tax profit for Harry of 25 to 45,000.
0:31:58 > 0:32:02Already got an offer on the table at the moment of 280.
0:32:02 > 0:32:07I think my target is the upper end, 285, actually, tomorrow morning,
0:32:07 > 0:32:10if somebody comes with the offer of 290, I'll shake their hand
0:32:10 > 0:32:11and walk away from it.
0:32:14 > 0:32:18And has this hassle-free project whetted his appetite for more
0:32:18 > 0:32:19property development?
0:32:19 > 0:32:23The idea is to follow up with another property.
0:32:23 > 0:32:24If I can catch hold of one.
0:32:24 > 0:32:27Especially if I can get a property in this particular
0:32:27 > 0:32:28block, it would be ideal.
0:32:35 > 0:32:39Cradley Heath is seven miles from Birmingham and was
0:32:39 > 0:32:43famous in the 19th and early 20th century for chain and nail making.
0:32:45 > 0:32:49In 1910, women held a strike to protest against poor working
0:32:49 > 0:32:52conditions and this statue commemorates their iron will
0:32:52 > 0:32:55that changed the lives of thousands of workers.
0:32:57 > 0:33:01So, just a 10-minute walk away from Cradley Heath town centre is
0:33:01 > 0:33:02the property I'm here to see.
0:33:02 > 0:33:06Has a guide price of in between, which I think's a steal,
0:33:06 > 0:33:1060 to £65,000. It's a two-bed flat.
0:33:10 > 0:33:13It's close to all the schools, a bus station,
0:33:13 > 0:33:16a train track which is right there and the M5.
0:33:16 > 0:33:18Let's hope it's made of steely stuff.
0:33:20 > 0:33:23And anyone buying this flat will have to have the mettle to
0:33:23 > 0:33:26climb to the second floor, which wouldn't suit everyone.
0:33:29 > 0:33:33Really nicely kept communal areas on the way up to the flat.
0:33:33 > 0:33:35Bright hallway which is a good start.
0:33:35 > 0:33:41Small kitchen, down this bright hallway to a really big
0:33:41 > 0:33:43lounge actually for a two-bed flat.
0:33:43 > 0:33:46The window looks a little bit small for the size of that room
0:33:46 > 0:33:50but still a bit of light coming in there. That's the bathroom.
0:33:50 > 0:33:54We'll come back to that in a little while and the two bedrooms.
0:33:54 > 0:33:58Bedroom one here, bedroom two there. Single bed in there not a problem
0:33:58 > 0:34:04and the double bed in here overlooking Cradley Heath out here.
0:34:04 > 0:34:05OK. Train tracks are very,
0:34:05 > 0:34:09very close but a nice view over Cradley Heath all the same.
0:34:09 > 0:34:12Let's hope these double glazed windows do the job.
0:34:12 > 0:34:14If we listen carefully...
0:34:17 > 0:34:18Yes, they do.
0:34:20 > 0:34:25# Don't change a thing because you are a dream
0:34:25 > 0:34:28# and I want you just the way you are... #
0:34:30 > 0:34:32Well, that's not entirely true.
0:34:32 > 0:34:35I would change the decor, spruce it up a little bit
0:34:35 > 0:34:39and I want to give these carpets a little clean too.
0:34:39 > 0:34:40But otherwise, not much to do.
0:34:42 > 0:34:47However, I did say we'd come back to the bathroom.
0:34:47 > 0:34:48OK, into the bathroom.
0:34:48 > 0:34:50Now, this is the only place in the flat
0:34:50 > 0:34:54I can see would need some immediate work done to it.
0:34:54 > 0:34:57This piece of the bath is falling away
0:34:57 > 0:35:01and as I pull it back I can see the signs of a leak of some sort
0:35:01 > 0:35:06maybe coming from pipework or even from the shower.
0:35:06 > 0:35:11The sink's a little bit wobbly as well so just start again in here.
0:35:11 > 0:35:14Put a new bathroom in and I think you'd be off and running
0:35:14 > 0:35:17but it wouldn't take you long and wouldn't cost you much.
0:35:18 > 0:35:22Shaky sinks and broken baths are really the only things
0:35:22 > 0:35:24you need to fix in this flat
0:35:24 > 0:35:28and that guide price of £60-£65,000, what's not to like?
0:35:30 > 0:35:34But will a local estate agent share my optimistic opinion?
0:35:36 > 0:35:40First impressions of the property, I think it's a nice apartment,
0:35:40 > 0:35:42quite spacious.
0:35:42 > 0:35:47In general, in not bad condition, but could do with some painting
0:35:47 > 0:35:50and cleaning of carpets.
0:35:50 > 0:35:56I would estimate that you need to spend between 1.5 to £2,000.
0:35:56 > 0:35:59Any negatives the estate agent can see?
0:35:59 > 0:36:02This particular property is very close to the train line
0:36:02 > 0:36:06so you are going to have some noise from when the trains go by.
0:36:06 > 0:36:09Also, the fact it's on the second floor, it will limit the people
0:36:09 > 0:36:14that would be choosing to purchase or rent this property out.
0:36:15 > 0:36:19There may be noise from the trains but one silver lining is,
0:36:19 > 0:36:22the local train station is right around the corner.
0:36:23 > 0:36:26And it will get you to Birmingham in no time at all,
0:36:26 > 0:36:29making this an ideal commuter property.
0:36:29 > 0:36:33So, what might such a buyer pay for the flat?
0:36:33 > 0:36:37Once renovated, I would say that this property would achieve £75,000.
0:36:38 > 0:36:42Not a huge amount of profit there for resale but what about rental?
0:36:42 > 0:36:47This property could achieve £450 per calendar month.
0:36:47 > 0:36:50So, wouldn't take much to get this flat back up to standard,
0:36:50 > 0:36:52fix that leak, get those carpets cleaned
0:36:52 > 0:36:54and spruce it up with a bit of decorating.
0:36:54 > 0:36:59I don't think it would take much to get this place ready for rental or even sale.
0:36:59 > 0:37:03Let's see who saw the opportunity when it went under the hammer.
0:37:03 > 0:37:06133, staying in the West Midlands we've got a self-contained
0:37:06 > 0:37:10purpose-built second-floor flat start me at 50
0:37:10 > 0:37:13for lot 133, opening at 50, please, 50, anywhere?
0:37:13 > 0:37:16No? 50? Are you bidding? Scratching? You're bidding.
0:37:16 > 0:37:1850 I have. 51 anywhere?
0:37:18 > 0:37:2351. 52? 52. 53? 53. 54?
0:37:23 > 0:37:2954. 55? 55. 56? No. 55 then.
0:37:29 > 0:37:3356 anywhere else? 56. Seven? Seven. 58?
0:37:33 > 0:37:36By the camera? 58. 59?
0:37:36 > 0:37:39Yes, sir, thank you, 60. 60 I'm bid.
0:37:39 > 0:37:4361? No. 60 by the camera, 61 anywhere?
0:37:43 > 0:37:45First time at 60 then. Second time at 60.
0:37:47 > 0:37:49Third and last time at £60,000.
0:37:49 > 0:37:51Cradley Heath. Against you there. All done?
0:37:52 > 0:37:54Sold at 60. Got it.
0:37:54 > 0:37:58So, from the bottom of the guide price of £60,000, Gurprit
0:37:58 > 0:38:02snapped this up for him and his business partner.
0:38:02 > 0:38:04Together they have a growing property portfolio
0:38:04 > 0:38:08as well as running a small transport company.
0:38:08 > 0:38:12I met local man, Gurprit, back at his new property, to find out his plans.
0:38:12 > 0:38:14- Gurprit, nice to meet you. - Nice to meet you.
0:38:14 > 0:38:16Congratulations as well, pal.
0:38:16 > 0:38:18Why, why this particular property?
0:38:18 > 0:38:20It was going cheap. HE LAUGHS
0:38:20 > 0:38:21At auction, when you went,
0:38:21 > 0:38:23did you go alone, with your business partner?
0:38:23 > 0:38:26No, I went on my own. Yeah, he was busy running the business.
0:38:26 > 0:38:28- Ah, making the money elsewhere? - That's right. Yeah.
0:38:28 > 0:38:30And tell us, did you go for anything else?
0:38:30 > 0:38:33Just for this one in particular or was there a list of them?
0:38:33 > 0:38:35Well, there's this one and there's one in the next block
0:38:35 > 0:38:38and fortunately I managed to get them both.
0:38:38 > 0:38:40So, do you look, do you look in this area only
0:38:40 > 0:38:41when you're looking for property?
0:38:41 > 0:38:45Just not too far from home and this is about the first,
0:38:45 > 0:38:48I'm only 10 or 15 minutes drive from here, so...
0:38:49 > 0:38:53Two purchases locally in a potentially strong rental area
0:38:53 > 0:38:56makes sense for Gurprit's business.
0:38:56 > 0:38:58Buying locally has its advantages.
0:38:58 > 0:39:00Nobody knows home better than you.
0:39:00 > 0:39:03It's often easier to find a tenant and if you need to do any jobs,
0:39:03 > 0:39:06big or small, you're just around the corner.
0:39:07 > 0:39:12# There ain't no place That I'd rather be....
0:39:12 > 0:39:15# Next to you Next to me. #
0:39:15 > 0:39:19Although I think this place doesn't really call for a lot of work.
0:39:20 > 0:39:24So, tell us what you're going to do. What do you have to do?
0:39:24 > 0:39:27There is very little to do. Cleaning of the carpets.
0:39:27 > 0:39:31Um...the bathroom just needs a little bit of inspecting, there's
0:39:31 > 0:39:34been a leak and very, very little else really.
0:39:34 > 0:39:37- I think it's going to be a quick turnaround?- A quick turnaround.
0:39:37 > 0:39:39Straight...rent it straight out.
0:39:39 > 0:39:42So it's not your full-time job this, is it, your property developing?
0:39:42 > 0:39:44- No, no, I'm a white van man. - You're a white van man?
0:39:44 > 0:39:47That's what I do, yeah. We're a small tran job, yeah.
0:39:47 > 0:39:49And this is just a bit of a...?
0:39:49 > 0:39:52Yeah, this, this, again, this, I was attracted to this property
0:39:52 > 0:39:55because we're quite busy at work and haven't really got the time to be,
0:39:55 > 0:40:01you know, getting stuck into the renovations because we have had properties
0:40:01 > 0:40:05where we've had to do a bit more work and it takes a lot of time up and at
0:40:05 > 0:40:08the moment builders are a bit thin on the ground because they're all busy.
0:40:08 > 0:40:11And, um, I just thought this was a nice quick turnaround,
0:40:11 > 0:40:15get it rented out and it shouldn't be too much of a headache.
0:40:15 > 0:40:18It's pretty close to coming back and seeing the finished article,
0:40:18 > 0:40:22- this one.- Yeah.- I can't see anything.- We'll be done in a week.
0:40:22 > 0:40:25And what will you spend on it? What are you hoping to spend on it?
0:40:25 > 0:40:28Hoping just a few hundred pounds really. HE LAUGHS
0:40:28 > 0:40:33Rent a carpet cleaner and that's it and, um, the odd lick of paint.
0:40:33 > 0:40:35Just investigate, as I say, the bathroom, just to see
0:40:35 > 0:40:38if there's any plumbing issues.
0:40:38 > 0:40:40It shouldn't be, it should cost just a few hundred pounds.
0:40:40 > 0:40:44So, Gurprit, how are you managing to cram this into your busy
0:40:44 > 0:40:48life as well, because you're full-time with your white van man business?
0:40:48 > 0:40:51That was the, that was the attraction to this property in particular
0:40:51 > 0:40:53because it's such a quick turnaround
0:40:53 > 0:40:57and at the moment we are busy at work
0:40:57 > 0:41:02so can't afford to be too far away from my desk or on my steering wheel
0:41:02 > 0:41:07so, so, that's why I thought just do this quick
0:41:07 > 0:41:09and get back to the day-to-day.
0:41:09 > 0:41:11That's what pays the bills really.
0:41:14 > 0:41:16A few hundred pounds and seven day's work.
0:41:16 > 0:41:19Ideal for Gurprit, so he can concentrate on his day job
0:41:19 > 0:41:22which is running his transport company.
0:41:22 > 0:41:27Erm, well, I've always had a keen eye for property.
0:41:27 > 0:41:29I mean, I lost my father over 30 years ago
0:41:29 > 0:41:32and he used to say you'll never go wrong in property.
0:41:32 > 0:41:33Unfortunately, both myself
0:41:33 > 0:41:38and my business partner were made redundant in the early 2000s.
0:41:38 > 0:41:40We were able to, with funding,
0:41:40 > 0:41:44buy the premises where we work from and we managed to rent that out
0:41:44 > 0:41:49and we get a good return on that from a blue-chip metal recycler
0:41:49 > 0:41:54and it's that that's allowed us to go back to the banks and lend against
0:41:54 > 0:41:58it and buy a couple of properties and it's gone on from there really.
0:41:58 > 0:42:01So you're sort of doing it in stages, aren't you?
0:42:01 > 0:42:04You sort of made sure that the backbone's nice and strong.
0:42:04 > 0:42:06- That's right, yeah. - And built from there?
0:42:06 > 0:42:11Yeah, and we were fortunate in 2008 when the wheel fell off it's axle
0:42:11 > 0:42:16that the banks were...agreed to lend to us
0:42:16 > 0:42:21against our existing property, our commercial property
0:42:21 > 0:42:23and that allowed us to buy a couple of houses.
0:42:23 > 0:42:25And will you deviate from the renting?
0:42:25 > 0:42:29Will you maybe buy for even yourself or will you buy to
0:42:29 > 0:42:31sell at any time or does it depend on what's out there?
0:42:31 > 0:42:36It's depending what's out there. If I can get a good price to sell it then everything's for sale.
0:42:36 > 0:42:41- Yes, at the right price. Including footballers.- Yeah, absolutely.
0:42:41 > 0:42:42And I know you're a Villa fan.
0:42:42 > 0:42:45- And they need some players at the moment.- Yeah, they do.
0:42:45 > 0:42:48Could do with you putting your boots back on really, couldn't they?
0:42:48 > 0:42:51Mine have got cobwebs on now. I'm steering clear of that.
0:42:51 > 0:42:56- You're doing better than some of them.- Good luck, pal.
0:42:56 > 0:42:59- See you soon.- Cheers.
0:42:59 > 0:43:01I think Gurprit's onto a winner here.
0:43:01 > 0:43:06Two-bedroom flat for only £60,000, in this condition?
0:43:06 > 0:43:08I don't think it's exactly going to test his mettle, do you?
0:43:08 > 0:43:11You can find out how he gets on later on in the programme.
0:43:14 > 0:43:17So, we've seen how one of today's properties turned out.
0:43:17 > 0:43:19Yes, it's time to see what happened to the others.
0:43:19 > 0:43:21But is it time and money well spent?
0:43:25 > 0:43:29Pontygwaith was the Welsh valley village I visited earlier where
0:43:29 > 0:43:34I saw a two-bed mid-terrace guided at £19,000.
0:43:34 > 0:43:40# I'm not free but I'm cheap. #
0:43:42 > 0:43:45With such a low guide price I didn't have high
0:43:45 > 0:43:47expectations for the property.
0:43:47 > 0:43:49It was in need of total modernisation
0:43:49 > 0:43:52but it was the layout that flummoxed me.
0:43:53 > 0:43:58Front living room into your rear sort of sitting room
0:43:58 > 0:44:02but then through to, what, what do you think?
0:44:02 > 0:44:04Well, it's bound to be here.
0:44:04 > 0:44:10You know. It's a ki...ki...no, it's not. It's not a kitchen.
0:44:10 > 0:44:13It's like a third sort of living room area.
0:44:13 > 0:44:17The kitchen is actually out there in what looks like an extension bit.
0:44:17 > 0:44:21What were they thinking?
0:44:21 > 0:44:23Cezar was thinking about profit
0:44:23 > 0:44:27when he purchased this at auction for £30,000.
0:44:27 > 0:44:31The locksmith and keen DIYer was roaming pretty
0:44:31 > 0:44:33far from home for this renovation.
0:44:35 > 0:44:38I live in West London so I just jump on M4 and come over here.
0:44:38 > 0:44:40- You're from London?- I am, yeah.
0:44:40 > 0:44:45I prefer this area because very nice area and I hate London, so I'm
0:44:45 > 0:44:48looking for an area to move over the next couple of years or so.
0:44:48 > 0:44:50Well, Rome wasn't built in a day
0:44:50 > 0:44:54and Cezar knew there was a lot of renovation ahead.
0:44:54 > 0:44:58Four months later and we're back to see what changes Cezar has
0:44:58 > 0:45:01made to the property.
0:45:01 > 0:45:06# I.... I got work to do
0:45:06 > 0:45:09# I got work, baby I got work to do
0:45:09 > 0:45:11# I got a job, baby I got work to do. #
0:45:14 > 0:45:18Although it's not quite finished yet, the results are impressive.
0:45:18 > 0:45:22How did Cezar get on with his three living rooms?
0:45:22 > 0:45:25We opened up like, 2.5 metres or something.
0:45:25 > 0:45:28We didn't want to open up the whole space.
0:45:28 > 0:45:31It was a massive job so we just left an open space.
0:45:31 > 0:45:33I think it looks nice.
0:45:33 > 0:45:37So, as promised, Cezar has knocked two living rooms into one.
0:45:37 > 0:45:41A much more sensible solution. And what about that kitchen?
0:45:42 > 0:45:46The old extension, it was a broken beam into the ceiling which
0:45:46 > 0:45:49we replaced and put a new kitchen in.
0:45:51 > 0:45:55As I hoped, he moved the kitchen into the third living room.
0:45:55 > 0:45:58Downstairs had a lot of damp. Is that fixed?
0:46:00 > 0:46:03Damp, especially in the second reception room
0:46:03 > 0:46:07was from the leaking roof on the extension.
0:46:08 > 0:46:12Soon as we fixed that leaking problem, the damp disappeared.
0:46:14 > 0:46:17# I got work to do
0:46:18 > 0:46:21# I got work to do I got work to do
0:46:21 > 0:46:25The garden was overgrown and messy. What happened there?
0:46:25 > 0:46:28The garden we worked for about two days,
0:46:28 > 0:46:30it was like a small forest in there.
0:46:30 > 0:46:32Very, very hard work.
0:46:32 > 0:46:37We just have to do some more cleaning or put some grass in there maybe.
0:46:37 > 0:46:38We'll see.
0:46:38 > 0:46:41# Work, work, yeah Work, work
0:46:41 > 0:46:43The large bathroom has stayed put
0:46:43 > 0:46:47but it has been modernised, complete with a separate shower unit
0:46:47 > 0:46:51and thankfully, that avocado suite has been confined to history.
0:46:51 > 0:46:54Possibly, we wanted to keep the bathroom upstairs,
0:46:54 > 0:46:58not to move it downstairs like some of the people said or recommended.
0:46:58 > 0:47:01So we put a boiler in there. Just installed everything
0:47:01 > 0:47:05like a shower, a new bathtub, toilet, sink, some laminate.
0:47:05 > 0:47:07It's very good.
0:47:07 > 0:47:10The two bedrooms are looking much smarter now,
0:47:10 > 0:47:12so what's happened in here?
0:47:12 > 0:47:16For the bedroom, all the walls have been re-plastered. Dry lining.
0:47:16 > 0:47:18And the plaster's on top.
0:47:18 > 0:47:21# Got so much work, yeah Got work to do
0:47:21 > 0:47:25This property has been totally revamped and is looking great
0:47:25 > 0:47:28but what about that loft conversion Cezar was keen to do?
0:47:28 > 0:47:30# Work, yeah, yeah
0:47:31 > 0:47:36And he did it but this hard worker isn't quite satisfied.
0:47:37 > 0:47:43For the loft, I built some stairs, which are not very good, I think.
0:47:43 > 0:47:47We're just going to change those with new ones to meet
0:47:47 > 0:47:50building regulations. The loft, I think it's a very, very nice room.
0:47:50 > 0:47:54# I got work to do Work to do, work, work, work
0:47:54 > 0:47:58I'm a little exhausted just listening to all these jobs!
0:47:58 > 0:48:01He didn't do all this himself, did he?
0:48:02 > 0:48:04# I got a job my darling
0:48:04 > 0:48:06# I got work to do Work to do. #
0:48:06 > 0:48:08I've done the boiler myself for the first time,
0:48:08 > 0:48:11all the pipework, all the radiators, everything.
0:48:11 > 0:48:13We called out a gas engineer to connect the gas for us.
0:48:13 > 0:48:16I fitted the bathroom, everything in the bathroom, myself.
0:48:16 > 0:48:20The kitchen, floor, pretty much everything except plastering.
0:48:20 > 0:48:23I'm not very good at plastering, so...
0:48:23 > 0:48:27Cezar is over his timescale by a few weeks and thinks another
0:48:27 > 0:48:31two weeks will be needed to finish, but is he over budget?
0:48:32 > 0:48:34Initial budget was £10,000
0:48:34 > 0:48:38so we ended up spending about 14,000-15,000.
0:48:38 > 0:48:41Mostly because of the loft conversion.
0:48:41 > 0:48:45And we also had to pay for four skips.
0:48:47 > 0:48:50Hard work over. Well, almost, but now it is time to invite
0:48:50 > 0:48:55two local property experts to give their thoughts and I'd also like
0:48:55 > 0:48:59to know if that loft conversion will add value and will the values be
0:48:59 > 0:49:04enough for Cezar to make a profit on his £45,000 outlay thus far?
0:49:06 > 0:49:08This is my second visit to the property.
0:49:08 > 0:49:10The renovation work has been done to a very good standard.
0:49:10 > 0:49:13The layout has been improved in my opinion.
0:49:13 > 0:49:19I think, opening up the two reception rooms
0:49:19 > 0:49:23will make it a lot more appealing to potential buyers.
0:49:23 > 0:49:26Yes, definitely, adding the loft room will add some value to the property.
0:49:26 > 0:49:30The loft conversion probably won't be classed as a bedroom due to
0:49:30 > 0:49:35building regulations, stipulations, given the stairs and doorway.
0:49:35 > 0:49:39Yes, even Cezar admitted these stairs probably won't meet
0:49:39 > 0:49:43building regulations, meaning he can't resell this as a three-bed.
0:49:43 > 0:49:45Always best to work with your local planning department
0:49:45 > 0:49:47on such conversions.
0:49:47 > 0:49:49With Cezar looking to sell the property,
0:49:49 > 0:49:52he will be keen to hear those all-important valuations.
0:49:55 > 0:49:56On the sales market,
0:49:56 > 0:50:00we would hope the property would achieve between £65,000 and £70,000.
0:50:00 > 0:50:06On the rental market, between £395 and £415 per calendar month.
0:50:06 > 0:50:08If I was to put the property on the market today,
0:50:08 > 0:50:12I would expect it to achieve around £65,000.
0:50:12 > 0:50:16If I was to put the property on the market for rental purposes,
0:50:16 > 0:50:20I would expect it to achieve around £400 per calendar month.
0:50:20 > 0:50:24With that higher rental valuation of £415 per calendar month,
0:50:24 > 0:50:30Cezar would have a healthy 11% yield. While reselling at £70,000
0:50:30 > 0:50:36could bring him a £25,000 profit before the usual taxes and expenses.
0:50:36 > 0:50:40I think they are very good, especially the first one, 65 to 70,
0:50:40 > 0:50:41it is exactly what I had in mind.
0:50:41 > 0:50:43I am not really interested in going rental
0:50:43 > 0:50:46so the plan is to put the property up for sale.
0:50:48 > 0:50:52Six days a week, living far from home was the downside
0:50:52 > 0:50:56to this project, but could he be tempted to do it all over again?
0:50:56 > 0:51:00If you ask me now - no. Maybe if you ask me in a week's time - yes.
0:51:06 > 0:51:09We return to Cradley Heath just outside Birmingham where I saw
0:51:09 > 0:51:13a two-bed flat guided at £60,000-£65,000
0:51:13 > 0:51:16and first impressions were strong.
0:51:16 > 0:51:19Right, hallway, which is a good start. It is a small kitchen,
0:51:19 > 0:51:22a bit of TLC, you could turn that round.
0:51:22 > 0:51:26But surely, being close to train tracks, that would be a problem.
0:51:26 > 0:51:30Let's hope these double-glazed windows do the job,
0:51:30 > 0:51:32if we listen carefully.
0:51:35 > 0:51:36Yes, they do.
0:51:37 > 0:51:39# It's all good. #
0:51:41 > 0:51:43But it wasn't quite all good.
0:51:43 > 0:51:45I finally found some work to do in the bathroom.
0:51:45 > 0:51:49This piece of the bath is falling away and as I pull it back,
0:51:49 > 0:51:52I can see the signs of a leak. Just start again in here,
0:51:52 > 0:51:56put a new bathroom in and I think you'd be off and running.
0:51:57 > 0:52:00The property was a sideline for self-confessed white van man,
0:52:00 > 0:52:03Gurprit. And this £60,000 purchase at auction
0:52:03 > 0:52:06was one of two purchases he made on the day.
0:52:07 > 0:52:11But this one had so little work needed, I thought...
0:52:11 > 0:52:14It is pretty close to coming back and seeing the finished article,
0:52:14 > 0:52:17- this one.- Yeah.- There is nothing here. I can't see anything...
0:52:17 > 0:52:20- We'll be done in a week.- And what would you spend on it,
0:52:20 > 0:52:23- what are you hoping to spend on it? - Hoping just a few hundred pounds.
0:52:23 > 0:52:28- Really?- Rent a carpet cleaner and that's it.
0:52:28 > 0:52:29MUSIC: 'Pompeii' by Bastille.
0:52:29 > 0:52:32All in all, clean the carpets, touch up the paint
0:52:32 > 0:52:34and a few odd jobs to do.
0:52:34 > 0:52:37So when we went back just over a month later,
0:52:37 > 0:52:39we weren't expecting huge transformations.
0:52:39 > 0:52:42# But if you close your eyes
0:52:42 > 0:52:47# Does it almost feel like Nothing changed at all?
0:52:47 > 0:52:49# And if you close your eyes
0:52:49 > 0:52:54# Does it almost feel like You've been here before? #
0:52:56 > 0:52:59And that's because the flat didn't need a big overhaul
0:52:59 > 0:53:02but time to find out from Gurprit what work he did do.
0:53:03 > 0:53:08What we've done here is, we've given the whole flat a lick of paint,
0:53:08 > 0:53:09freshened it up.
0:53:09 > 0:53:14New taps in the bathroom, sink and bath.
0:53:14 > 0:53:17New tap and sink in the kitchen.
0:53:17 > 0:53:20There were a couple of lights weren't working, the electrician has
0:53:20 > 0:53:23solved the problem, I'm not sure if he put a new light in the bathroom.
0:53:23 > 0:53:26Other than that, the boiler service. We have cleaned the carpets,
0:53:26 > 0:53:29we had a carpet cleaner in to clean the carpets.
0:53:31 > 0:53:36So, who did the work? Did Gurprit get in and get his hands dirty?
0:53:36 > 0:53:40Just a couple of fellows we use regularly on different jobs.
0:53:40 > 0:53:45They happened to be free and a general builder and his labourer.
0:53:45 > 0:53:48I come and go all the time they are here
0:53:48 > 0:53:51and I am a bit of a gopher and I go and get whatever they need,
0:53:51 > 0:53:55paint and bits so they can just come straight in and get the job done.
0:53:55 > 0:53:57I helped take the kitchen sink out, that was about it.
0:53:57 > 0:54:00Got underneath, just gave them a hand getting the kitchen sink out.
0:54:00 > 0:54:03I put in about 20 minutes' physical work.
0:54:03 > 0:54:06So, nothing but the kitchen sink, hey, Gurprit?
0:54:08 > 0:54:10It took five days in total to finish the work
0:54:10 > 0:54:13but how much did he end up spending?
0:54:13 > 0:54:16Did he stray above his intended few hundred quid?
0:54:16 > 0:54:18It's been about £1,000, yeah.
0:54:19 > 0:54:20It was about that.
0:54:22 > 0:54:25Gurprit is looking to rent the property, but as a landlord,
0:54:25 > 0:54:29he has certain obligations to fulfil before tenants can move in.
0:54:31 > 0:54:34By law, landlords are required to have an annual inspection
0:54:34 > 0:54:36of gas supply and appliances
0:54:36 > 0:54:39and it must be done by a registered gas engineer.
0:54:41 > 0:54:43The record of this safety check should be kept by the landlord
0:54:43 > 0:54:46and the tenant should also be given a copy.
0:54:46 > 0:54:49The landlord responsibilities are just the gas safety check
0:54:49 > 0:54:53on the boiler which has been done and we have serviced it as well.
0:54:53 > 0:54:55We have had a look at the electrics, we haven't got a certificate
0:54:55 > 0:54:58but we just made sure everything works really, with the electrics.
0:54:58 > 0:55:02There is no obligation to put a full certificate or anything like that.
0:55:07 > 0:55:11And with that work done, Gurprit has lined up a tenant.
0:55:11 > 0:55:14Will the agents be impressed with his budget renovation?
0:55:14 > 0:55:18Let's start with the agent who saw it when we first visited.
0:55:18 > 0:55:22Overall, I think he has done a good refurbishment of it.
0:55:22 > 0:55:26Very tidy, clean. Nice, neutral colours.
0:55:26 > 0:55:29So, overall, I think he has done a good job.
0:55:29 > 0:55:33I think it is nice. Neutral colours, it is quite well presented.
0:55:35 > 0:55:36The flat was already in good condition
0:55:36 > 0:55:39but in the opinion of the estate agents, was there anything
0:55:39 > 0:55:43that Gurprit could have done to increase the value?
0:55:43 > 0:55:46I think it is worth replacing the carpets for rental.
0:55:46 > 0:55:48I think by replacing the carpets, we would probably
0:55:48 > 0:55:53get at least £2,000 to £3,000 increase in the selling price.
0:55:53 > 0:55:56So changing the carpets would add value.
0:55:56 > 0:55:57Something for Gurprit to think about
0:55:57 > 0:56:01if he considers selling the property.
0:56:01 > 0:56:02So what are those sales prices
0:56:02 > 0:56:08and can Gurprit make a profit from his £61,000 total spend?
0:56:08 > 0:56:11I would expect it to achieve in the region of £80,000.
0:56:11 > 0:56:14If I was advising an investor, I would certainly recommend
0:56:14 > 0:56:17keeping the property to rent for the next two or three years
0:56:17 > 0:56:20in line with trends in the current area.
0:56:20 > 0:56:25This property could achieve between £75,000 and £79,000.
0:56:25 > 0:56:27I feel very pleased with that, yeah.
0:56:28 > 0:56:31But a potential £19,000 pre-tax profit isn't enough
0:56:31 > 0:56:34to change Gurprit's mind.
0:56:34 > 0:56:37He wants to rent for the long-term, so what rental figures
0:56:37 > 0:56:40can he expect and does it match up to what he is already achieving
0:56:40 > 0:56:43with his portfolio in the local area?
0:56:44 > 0:56:49This property could achieve for rental, £500 per calendar month.
0:56:49 > 0:56:52I would expect to achieve around 525 per calendar month.
0:56:52 > 0:56:54Yeah, I am pleased with that.
0:56:54 > 0:56:58We have put the other one out to rent at 495
0:56:58 > 0:57:01and within a week it was rented out.
0:57:01 > 0:57:04We would prefer not to be too greedy on the rental side
0:57:04 > 0:57:07so we would prefer to have some longevity with the tenant
0:57:07 > 0:57:12and we're a bit fussy as to who we would give the property to.
0:57:12 > 0:57:14£25 a month is not going to make a lot of difference.
0:57:14 > 0:57:16We'd rather do it a little bit cheaper
0:57:16 > 0:57:19and have somebody for the long-term.
0:57:20 > 0:57:24At a top estimate of £525 per calendar month,
0:57:24 > 0:57:27Gurprit could make a 10.3% yield.
0:57:27 > 0:57:30But he is right, better to have a good tenant
0:57:30 > 0:57:31than a little extra cash,
0:57:31 > 0:57:35as the difference in yield for his rate is just 0.6%.
0:57:36 > 0:57:38Gurprit has a growing rental portfolio and
0:57:38 > 0:57:43when they're as easy as this to turn around, he must be a happy man.
0:57:43 > 0:57:46Quite happy, particularly with those valuations.
0:57:46 > 0:57:48I mean, it's a result, really, isn't it?
0:57:51 > 0:57:52Well, that's it for today's show.
0:57:52 > 0:57:56We hope you enjoyed seeing what today's buyers did.
0:57:56 > 0:57:58And picked up some valuable information along the way.
0:57:58 > 0:58:01So make sure you join us next time for more Homes Under The Hammers.
0:58:01 > 0:58:03- We will see you, then.- Goodbye.