Episode 25 Homes Under the Hammer


Episode 25

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Transcript


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Hello! It's amazing how you can start off by dabbling in property

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but it can quickly take over your life.

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-MARTIN:

-Why, yes. There are certainly lots of ups.

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You're your own boss and you get to spend more time with your family.

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Absolutely. So, if you can get a property at the right price, well,

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why not pop down to your local auction house?

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Now, I know we say this a lot but doing your research is key

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-when looking to buy a property at auction.

-It certainly is.

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So, did today's buyers follow our advice?

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-DION:

-I certainly hope so.

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Let's take a look at what they bought.

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In south London, the windows in this Grade II listed building let the outside in.

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They're single-glazed. You can hear the traffic.

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And in this Welsh terraced house,

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there's an inside window that really needs to be chucked out.

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That needs to be opened up, doesn't it?

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-DION:

-But the windows in this West Midlands flat are definitely

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on the right track.

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Let's hope these double-glazed windows do the job.

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Yes, they do.

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All these properties have been sold at auction.

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We'll find out who bought them and what they paid for them

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when they went under the hammer.

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Sold.

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This is the Elephant and Castle in central London.

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The area's unusual name derives from an old coaching inn

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that sat on this site.

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This part of London is currently undergoing a multibillion pound redevelopment scheme.

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There are big plans for a huge new shopping centre

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and thousands of new homes.

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Now, the Elephant also has excellent transport links.

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You've got Tube, rail and bus

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all connecting the area to the City and further afield.

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So, it's no wonder that this area is certainly one to watch.

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# Gonna get myself I'm gonna get myself

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# I'm gonna get myself connected. #

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Being connected is the one thing you won't have to worry about living

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in this area and if you prefer to travel under your own steam,

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it's only a 30 minute walk to the centre of London.

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Well, the property I'm here to see is a studio flat and it's in this

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large, big old complex here.

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Now, this building was designed by a Hungarian modernist architect, Erno Goldfinger.

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And that was back in the '60s and it was once government offices.

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And that was before it was converted now into residential use.

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Now, some may think it's a bit of an ugly eyesore.

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But it's actually Grade II listed

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and it's held up as an excellent example of post-war architecture.

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Interesting. Well, let's head inside and really take a closer look.

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Despite sharing his name with a Bond villain,

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Goldfinger's creation is mercifully free of missile silos,

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moon buggies and tanks full of hungry sharks.

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What was originally the Department Of Health

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is now a complex housing over 450 apartments,

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all housed in interconnecting blocks surrounding a central courtyard

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in which sits an Oriental style communal garden. Very peaceful.

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Now, the flats share other facilities -

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a 24-hour concierge service, ample on-site car parking.

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There is even a pool and a gym

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although the pool is undergoing refurbishment at present.

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Up for auction at a guide price of £210,000,

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the studio flat I'm here to see is on the second floor

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and you can choose to either take the lift or the stairs.

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So, first impressions on the inside, well,

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straight away to the right here there's a little bathroom.

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You've got some storage... Oh, wow!

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That's a big boiler. My goodness.

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I'm just wondering if you could relocate that or get something

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a bit smaller because it eats into all the cupboard space in there.

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And, yeah, well, there's studio flats and there's studio flats.

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And this is a small studio flat. You've got storage here.

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And talking of storage...

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storage heaters so I don't think there's any gas in this building

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so you've got to contend with storage heaters but there

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are some really good ones these days and they do work really efficiently.

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So, well, it's not the biggest room I've ever seen

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and round here the kitchen.

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It's as if this wall is in the way.

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I'm just wondering if this space could be reconfigured.

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But I think what I like about the property is this.

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Just have a look out here. Now, look.

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You really, really know you're living in London living here.

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You look out of this huge window - which by the way,

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if you don't like these, tough, you can't change them,

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this building is Grade II listed

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and these windows are here to stay - they're single-glazed,

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you can hear the traffic.

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You can also hear and see the train.

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You can see London red buses, you can hear sirens, I mean,

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this is what it's like living in the heart of London.

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Takes about 30 seconds to get to the Tube station, there's all

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the bridges out there, there's nightlife, it's all going on.

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I mean, this really is a fantastic community

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if this is the type of London living you want.

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So, that's about it.

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A loo with a shower, kitchen area and a living room/bedroom.

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# I'm coming up! So you better get this party started. #

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But if you're the kind of person who shouts, "Party back at mine,"

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then this could be slightly undersized for your needs.

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But if you just need a place to eat or sleep

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that's close to the heart of London, this is ideal.

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Now, before you get too excited about London living, there are

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a few things to consider when buying a flat in a tower block like this.

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Getting a mortgage, well, it can sometimes be a bit tricky.

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A lot of high-street lenders,

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they prefer flats in buildings of five floors or under.

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And this building, well,

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it's definitely well over that.

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As well as the height of the building,

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there's another factor to consider when trying to secure a loan.

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Size does matter when it comes to mortgages.

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Now, a lot of companies will not lend on studios, full stop.

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And others specify a minimum square footage requirement,

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commonly around 30 square metres.

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So, if you need a mortgage to be able to buy a flat,

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especially a studio flat like this,

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you're going to have to do your research and never assume

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mortgage lenders will love your new pad as much as you do.

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With a leasehold property, it's important to check the duration

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of the lease as this can impact on the range of mortgages available.

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In this case, there is 980 years left to run.

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Should be OK there, then.

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So, let's hear what a local property expert

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thought of the accommodation on offer in this '60s tower block.

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Good property, plenty of scope for improvement.

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I personally would put... Look to potentially put a wall bed in.

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Just because it gives the option, the fact that you're not actually

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sort of eating or potentially entertaining within your bedroom.

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I think that that's key.

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The kitchen and bathroom, obviously, could be upgraded

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and you'll get the benefits from those.

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And with rental properties being popular in London,

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what could the new owner expect to achieve?

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You'd be looking in the region of £1,100-£1,200 per calendar month

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depending on the level of spec. In terms of sale value,

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you're looking anywhere from between £250,000-£275,000.

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You'd certainly be living the high life if you buy this studio flat.

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But the apartment, well, it needs to be dragged out of the past

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and made so much more up-to-date on the inside.

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But you might also need to do your research to find a mortgage provider to buy the property.

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So, let's find out who bid for this bijoux apartment

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when we head to auction.

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First-floor self-contained flat, gated parking,

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communal leisure facilities. Great investment block, this one.

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Where do you want to start me? Shall we say 180?

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£180,000, I thought so, thank you. 180 I'll take from you.

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Can I say 182?

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182, 184,

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186, 188,

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190...

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Well, this was a popular lot with the bids coming in thick and fast.

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We rejoin the auction at 222,000.

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222?

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Yes, no? 222? 222.

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223, 224,

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225, 226?

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Shaking your head at me. 226, come back in.

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Otherwise, at the front, at £225,000 I have.

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It's against three of you now. 226, another thousand?

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Otherwise 225 I have.

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For the first, be quick,

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225 for the second...

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Third and final time, we all done at £225,000?

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Sold.

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Last man standing was Harry from nearby Purley who, with that final

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bid of 225,000, walked away with his first ever auction purchase.

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So, what's he going to do with it? We met up with him to find out.

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# Come on! #

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-Harry, congratulations.

-Thank you.

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If anybody wants to know what it's like living in the centre

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-of London, this flat says it all, doesn't it?

-Sure does.

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I mean, you look out of the windows and you can see the red buses.

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It's really London living here.

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You can see a train station just round the corner.

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You can hear the train station.

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So, why did you want to buy this property

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-and how well do you know the area?

-I know the area quite well.

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I think when we were young we used to pass Elephant and Castle quite a lot.

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Plus my son is living on the seventh floor.

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-Your son is living in the building?

-In the building.

-Already?!

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He's renting it.

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-Any chance your son might want to have this flat for himself?

-Not yet.

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He's got another one year to go.

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Despite his son living in the same building, Harry was blissfully

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unaware of its listed status and the restrictions that go with it.

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When we bought the property I did look at the windows

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and think, "Oh, the windows are the same type."

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So, I had something going there that we won't be able to change the windows.

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-You can't do an awful lot to it.

-Not a lot.

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Does it bother you that you can't change the windows because

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you can hear the traffic and you can hear the train?

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Not really, because I won't be living here.

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-So it's not going to bother you!

-Not really, no.

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Harry has formed a partnership with his friend Rajesh

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in order to take on his first project.

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With a career history that includes being a newsagent,

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a dry cleaner and selling parts for motorbikes,

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is property development slightly outside his comfort zone?

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-We built a hotel in Goa in India.

-Wow.

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And that's a 105-bedroom property. So that we started from the project, up.

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I wasn't much involved in it, though I was monitoring things,

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-but physical, no.

-I mean, gosh, a hotel to a studio flat!

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This is going to be so easy for you, isn't it?

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Different people, different countries so, attitude

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and tradingwise are different.

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-But do you feel confident?

-Oh, yeah, definitely. No doubt about that.

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So what are you going to do to really turn it around

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-and make it worth more money?

-It needs to be...

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We're going to change the layout up here.

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Going to knock the kitchen and bathroom down,

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we're going to turn it around. Put the bathroom on that far wall.

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Kitchen backing onto it. So, that way I think

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whoever buys this property will get slightly bigger area.

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-Because at the moment it looks a bit cramped.

-Yeah.

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-It'd be nice to have a more open-plan kitchen living space, wouldn't it?

-Correct.

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And have you checked out whether or not you can move certain walls

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and move and change and change layout?

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I haven't checked that but I think...

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When I got the builders in, it's all stud walls here.

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-So, I think it shouldn't be much of a problem.

-Right.

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Being an old office block.

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Sometimes it's all dependent on the freeholder

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and getting the permissions.

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-OK. Something I need to check up on that.

-Yeah.

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You might need to check

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because that's really vital just to make sure you do get permissions.

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-Yeah.

-So, how much are you intending on spending here?

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-Oh... Top end, we're looking at about 15,000.

-OK.

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But about, I think, if I can do it at 12,

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-but we don't want to cut the corners.

-OK, £12,000-£15,000.

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And how long do you think it's going to take you to convert this?

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I'd be looking at about four weeks.

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And are you going to be involved in the work?

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-Workwise, no physical work, no.

-So, you've got guys in to do it?

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Guys coming in.

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How much would you like to market this property for,

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how much do you think you could get once you've done your work to it?

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-I think we should get at least 280.

-Wow.

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I can't wait to see what you do to this place.

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I hope you clean the windows, for starters.

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Yeah, get my son to come and clean it.

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We'll be back to see how you get on soon. Thank you very much.

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-You're most welcome.

-Well done.

-Thank you.

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Buying this little studio flat at auction and doing it up,

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well, it could mark the start of a new property developing career for Harry.

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But how will his first project go and will it run smoothly?

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Join me later in the programme and you can find out how Harry

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gets on with his little Elephant and Castle flat later in the programme.

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Built into the side of a mountain,

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Pontygwaith in south Wales is certainly not lacking in amazing views.

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As with many of the settlements round here,

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it's an old mining village.

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The name itself, Pontygwaith, actually means bridge to work and the bridge

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in question still remains and is a Grade II listed structure.

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Isn't it lovely?

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Well, just a short walk from the main shopping street

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is the property I'm here to see. £19,000 plus was the guide price.

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For this. It's a two-bedroom mid-terrace. Let's have a look.

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So, with that low guide price... Oh, squeaky door!

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..I guess your expectations have got to be set fairly low.

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But, you know what? It's not a bad start. Little entrance area there.

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A porch, keep the noise and the cold out.

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Front living room, a few nice little features,

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I like the little alcoves.

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Definitely a dated fireplace, but, I don't know,

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it has a certain charm to it.

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-Doesn't smell too damp although...

-HE CLEARS HIS THROAT

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..having said that, some fairly serious signs of damp there.

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Stairs up to your bedrooms there. Into your rear sort of sitting room.

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And somebody's gone partial way to creating a knock-through.

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That needs to be opened up, doesn't it? More signs of damp there.

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But it's a reasonable size space and you've got the open fires.

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Doesn't look like there's any central heating

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so that's something you're going to have to budget for.

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But then through to... What?

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What do you think?

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What's bound to be here? You know, it's a k-k-kitch...

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No, it's not. It's not the kitchen.

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This is where you'd expect the kitchen to be, isn't it?

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But no, it's like a third living room area.

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The kitchen is actually out there

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in what looks like a sort of extension bit.

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What were they thinking?

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Clearly, your first job is knock down that wall or use

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that as some kind of utility room, convert this into your kitchen.

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Pretty obvious. The good news, though, doesn't look like there's

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a bathroom down here which means there might be one upstairs.

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Well, the downstairs layout is not quite what I expected,

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with three reception rooms

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and the kitchen tucked away at the very back.

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Obviously, that damp does need to be checked out but I can see

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the potential to create a lovely big family dining-kitchen.

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Well, upstairs, what have we got up here? Two reasonable sized bedrooms.

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That one, well, it's not a bad size.

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You'd want to put double-glazing in, for sure,

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because there's going to be some road noise.

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The other one, slightly bigger.

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But, you know, pretty decent for the size of house.

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What you don't expect is...

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the bathroom.

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For a start, it's where you'd hope it would be, as in upstairs.

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Secondly, it's a really good size.

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# Guacamole

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# Guacamole. #

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The avocado bathroom suite may well have passed its heyday

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but what is in fashion is finding room for an extra bedroom.

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I'm just going to contradict what I said earlier

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but you could move the bathroom downstairs and create a third bedroom

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there which would definitely make it more appealing to families.

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Or save yourself the hassle of replumbing and expand

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it into the loft upstairs, provided it meets building regulations.

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Something to think about. But let's have a look outside first.

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Well, through the kitchen and out the back

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and you've got a real hotchpotch.

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Not only have you got this sort of totally dreadful kitchen bit

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itself, an extension which was obviously built to house that

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little room which should have been the kitchen.

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From here you can also see the state of the roof.

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The bit where there should be lead going in to the main part

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of the property itself, that's going to cause a problem with damp.

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That probably explains why all those walls are so bad.

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But you've got this area here which is...

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We've got a downstairs loo, you've got a little storage area.

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I mean, it could be quite useful but at the moment it's a bit of a mess.

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But then up those stairs to a completely bonkersly overgrown garden.

0:18:160:18:21

Well, at least you've got the space...

0:18:210:18:24

looking on the bright side.

0:18:240:18:26

# And...

0:18:260:18:27

# Always look on the bright side of life! #

0:18:280:18:33

Keep laughing as you go because, with a 19 grand guide price,

0:18:330:18:37

and potential to expand out here and upstairs,

0:18:370:18:41

this one could certainly put a smile on your face.

0:18:410:18:44

But it's always worth remembering that it can be very difficult

0:18:440:18:47

to get a mortgage on properties under £20,000.

0:18:470:18:51

Let's hear what a local property expert makes of this two-bedroom

0:18:510:18:55

mid-terrace.

0:18:550:18:56

My first impressions of the property are that it does need

0:18:560:19:00

extensive renovation.

0:19:000:19:01

I would estimate you'd have to spend between £25,000-£30,000

0:19:010:19:06

to get it into a really nice condition.

0:19:060:19:09

Get it at anything like the guide price

0:19:090:19:11

and that could be a total £49,000 spend.

0:19:110:19:16

What would the agent do to add value?

0:19:160:19:18

If this was my house, I would possibly look to bring

0:19:190:19:22

the bathroom back downstairs to utilise that room as a third bedroom.

0:19:220:19:27

To get the full value of the property.

0:19:290:19:31

Obviously, you'd have to make some sort of allowance to put

0:19:310:19:34

the bathroom downstairs

0:19:340:19:36

but with the additional room to the rear I think you could do that.

0:19:360:19:40

So, what price could it attract for resale as a two-bed?

0:19:400:19:45

Once renovated, I would look to put the property on the market

0:19:450:19:47

for the £65,000 if it was left as a two-bedroom property.

0:19:470:19:52

And a three-bed?

0:19:520:19:54

I would look to put the property on the market for...

0:19:560:19:58

..£75,000.

0:20:000:20:01

So, maybe £10,000 extra with that third bedroom.

0:20:030:20:07

The agent also thinks the loft conversion,

0:20:070:20:09

should you get planning permission, is a good idea.

0:20:090:20:12

So, what would an extra bedroom do to rentals?

0:20:120:20:16

If the property remained as a two-bedroom property

0:20:160:20:18

you should be able to achieve around £375 per calendar month.

0:20:180:20:23

If the loft extension was carried out

0:20:230:20:26

then you should be able to achieve between £400-£425 per calendar month.

0:20:260:20:32

Well, there's obviously work to be done.

0:20:330:20:35

A bit of the roof to sort, that damp issue

0:20:350:20:38

definitely needs addressing.

0:20:380:20:40

But other than that, for that guide price,

0:20:400:20:42

I don't think you can go too far wrong with this one.

0:20:420:20:45

Let's see who agreed when it went under the hammer.

0:20:450:20:47

Lot number ten, we have a telephone bid.

0:20:480:20:51

Start me at 19, start me at 15, if you like. Put a hand up at 15.

0:20:510:20:55

Thank you, 15 over there. At 15. At 15, now. 16 can I see?

0:20:550:20:58

16, 17,

0:20:580:21:00

18, 19, 20?

0:21:000:21:03

20? 20, no. At 19 I've got.

0:21:030:21:05

At 19. 20 now I'm looking for.

0:21:050:21:07

20,000, thank you. 20. 21, do they want to on the phone?

0:21:070:21:11

21? 21, 22?

0:21:110:21:13

22, 23,

0:21:130:21:14

24, 25? 25.

0:21:140:21:16

26, 27,

0:21:160:21:19

28?

0:21:190:21:20

28? At 27 on the telephone...

0:21:200:21:23

28, thank you, 28.

0:21:230:21:25

29 to you.

0:21:250:21:26

30, do you want to? 30.

0:21:260:21:28

31 now? 31?

0:21:280:21:30

I've got 30 there right at the back in the centre.

0:21:300:21:33

At £30,000, you're out on the phone.

0:21:330:21:36

At £30,000 then for the first time,

0:21:360:21:39

second time,

0:21:390:21:40

third and last time at £30,000...

0:21:400:21:42

Sold. It's all yours, well done, number?

0:21:440:21:46

At £30,000, the successful bidder obscured at the back is Cezar.

0:21:460:21:51

Originally from Romania, Cezar has lived in the UK for seven years

0:21:510:21:56

and this is his first property auction buy.

0:21:560:21:59

I went along to meet mighty Cezar

0:21:590:22:02

and find out his plans.

0:22:020:22:03

# Oh, hail, Caesar

0:22:050:22:08

# Hail!

0:22:090:22:10

# Hail! #

0:22:100:22:12

-Cezar, good to meet you.

-Thanks a lot.

-Congratulations.

0:22:120:22:15

Tell me why you wanted to buy this house.

0:22:150:22:18

It was very cheap, really.

0:22:180:22:20

That was the only reason.

0:22:200:22:22

And, also, it's very easy for me to travel from London,

0:22:220:22:25

I live in West London.

0:22:250:22:26

I jump on M4 and I'm over here.

0:22:260:22:28

I love that! Very easy to get here.

0:22:280:22:30

I thought you were going to say you lived...worked in Cardiff or something!

0:22:300:22:34

-You're from London.

-I am.

0:22:340:22:36

So, compared to the prices in...

0:22:360:22:38

-well, any part of London, this must just seem ridiculously cheap.

-Yes.

0:22:380:22:42

-It's true.

-Right.

0:22:420:22:43

-Have you done property before?

-No.

0:22:430:22:46

I just have a team and we do refurbishment

0:22:460:22:48

and stuff like that, locksmith, handyman jobs.

0:22:480:22:51

Right. So that's what you do?

0:22:510:22:53

-So you've got a bit of DIY, slightly more than DIY experience.

-Yes.

0:22:530:22:58

So did you know the area before you bought the house here?

0:22:580:23:01

-No, not really.

-Had you been before you bought it?

0:23:010:23:04

I'd just seen it from outside, really, for a minute.

0:23:040:23:07

-Before the auction - in the same day.

-Oh, wow.

0:23:070:23:10

It looked like a very solid house and I decided to go for it.

0:23:100:23:13

-So when was the first time you saw inside?

-Today.

-Oh, today, wow!

0:23:130:23:17

-So, what do you think?

-It's very good, looks very good.

0:23:170:23:20

Yeah, easy to do, no major problems.

0:23:200:23:23

We'll see.

0:23:230:23:25

So tell me what you are going to do to sort it out.

0:23:250:23:28

First of all I'm planning to have a boiler, a combi boiler installed.

0:23:280:23:32

That's the main.

0:23:320:23:33

After that I'm going to stay in the property

0:23:330:23:36

cos I can travel to London every day.

0:23:360:23:38

It will be from Monday to Saturday, so we need heating.

0:23:380:23:40

-Just planning to knock a couple of walls down.

-Which ones?

0:23:400:23:43

-One between the two rooms in front.

-Oh, yes, OK.

0:23:430:23:46

All the paper...peel off,

0:23:460:23:48

plastering...

0:23:480:23:50

Bathroom, a new bathroom.

0:23:500:23:52

It's a big bathroom, so maybe we can go for a shower, as well,

0:23:520:23:55

in one of the corners instead of the boiler.

0:23:550:23:57

A new kitchen.

0:23:570:23:58

How are you going to integrate that little area which is currently the kitchen?

0:23:580:24:02

I'm just planning to knock the wall down between the kitchen and the room next door.

0:24:020:24:06

Some...steel supporting beams and stuff like that.

0:24:060:24:09

So probably can open it up.

0:24:090:24:11

We'll see, I have to think about it.

0:24:110:24:13

-And then put a new roof on that area?

-A new roof, yes.

0:24:130:24:16

Well, that would be very nice.

0:24:160:24:18

With this knocked through and that knocked through, that would be terrific.

0:24:180:24:21

-What about the damp?

-It's probably rising damp.

0:24:210:24:24

I'm not very good at this,

0:24:240:24:25

but one of my guys is very good at dealing with this kind of stuff.

0:24:250:24:29

So Cezar is keen to reconfigure the space in here

0:24:290:24:33

and thinks that it should take three months.

0:24:330:24:36

And he does have one other major layout change in mind.

0:24:360:24:40

He's going to expand into the loft.

0:24:400:24:42

We just have to have a chat with a local agent, something,

0:24:450:24:48

-see what they can...

-And if it's worth doing...

0:24:480:24:50

And who's going to do the work?

0:24:500:24:52

Mostly myself, probably a guy or two.

0:24:520:24:55

And how are you going to work that with your full-time job?

0:24:550:24:59

Um...

0:24:590:25:00

Now it's a little bit hard in the winter time, with building jobs

0:25:000:25:03

and stuff like that, so probably going to concentrate on this one.

0:25:030:25:06

-Were you happy with the price you paid at the auction?

-It's OK.

0:25:060:25:09

I can pay less, but...

0:25:090:25:11

That's fine. £30,000 is OK.

0:25:110:25:13

So what's the budget for the work?

0:25:130:25:16

-£10,000 I guess.

-OK.

-Yes.

0:25:160:25:19

That's quite a lot of knocking around walls and things

0:25:190:25:21

-for that money, but...

-Yes.

0:25:210:25:23

-But you doing the work, then it's going to be a bit cheaper, eh?

-I think so.

0:25:230:25:27

So £40,000 will be the amount of money you spend

0:25:270:25:30

if you stick to that budget.

0:25:300:25:32

How much do you think you might be able to sell it for?

0:25:320:25:35

I'm not sure yet, probably between 70,000 and 80,000,

0:25:350:25:37

I think.

0:25:370:25:39

And then, if it goes well, will you buy more in this part of Wales?

0:25:390:25:42

I preferred this area, very nice area and I hate London.

0:25:420:25:46

So I'm looking for an area to move on in the next couple of years.

0:25:460:25:50

Well, listen, congratulations, good luck with it.

0:25:500:25:53

Look forward to seeing how you get on.

0:25:530:25:55

Thank you.

0:25:550:25:56

So travelling a long way from home for his renovation project.

0:25:560:26:01

He has got a lot of work on,

0:26:010:26:03

so will it be salad days for Cezar when we come back?

0:26:030:26:07

You can find out later in the show.

0:26:070:26:09

Still to come...

0:26:110:26:12

In the West Midlands, I uncover a potential problem.

0:26:120:26:15

As I pull it back, I can see the signs

0:26:150:26:18

of a leak of some sort...

0:26:180:26:20

And back in Pontygwaith, we found out what Cezar did with all his living rooms.

0:26:220:26:28

It was a massive job.

0:26:280:26:29

I think it looks nice.

0:26:290:26:30

It's time now to return to the hustle and bustle

0:26:370:26:39

of the Elephant and Castle in London.

0:26:390:26:42

# Towers of London

0:26:420:26:44

# When they had built you

0:26:440:26:46

# Did you watch over the men who fell? #

0:26:460:26:51

Earlier I got a taste of the high life in this 1960s

0:26:510:26:55

Grade II listed tower block.

0:26:550:26:58

Yes, well, there are studio flats and there are studio flats.

0:26:580:27:01

And this is a small studio flat.

0:27:010:27:03

Not the most spacious of properties, I'll admit,

0:27:060:27:08

but somewhere to hang your hat, brush your teeth

0:27:080:27:11

and rest your weary head after a day at the office.

0:27:110:27:13

Being a listed building, well, there wasn't much you could change.

0:27:130:27:17

These windows are here to stay.

0:27:190:27:21

They're single glazed, you can hear the traffic.

0:27:210:27:25

You can also hear and see the train

0:27:250:27:28

You can hear sirens,

0:27:280:27:29

I mean, this is what it's like living in the heart of London.

0:27:290:27:32

Well, traffic noise wasn't an issue for Harry,

0:27:340:27:36

who brought this bijou residence for £225,000.

0:27:360:27:39

Does it bother you that you can hear the traffic

0:27:410:27:43

and you can hear the train?

0:27:430:27:45

Not really, because I won't be living here. SHE LAUGHS

0:27:450:27:47

Teaming up with a business partner,

0:27:490:27:51

Harry's plan was to refurbish quickly and then sell on.

0:27:510:27:54

It's been almost two months since we were last here,

0:27:560:27:59

so what's Harry been up to?

0:27:590:28:00

Well, it looks like Harry has been a busy boy.

0:28:140:28:17

This is looking very nice indeed.

0:28:170:28:19

Who better than the man himself to give us a guided tour?

0:28:190:28:22

Oh, I don't know if you remember when you came in last time,

0:28:250:28:28

there used to be an old storage unit up here...

0:28:280:28:31

So we have taken that one out,

0:28:310:28:33

taken the old storage units out from there to create more space here...

0:28:330:28:37

Fitted a brand-new bathroom,

0:28:380:28:40

new shower, new cubicle, sink, toilet.

0:28:400:28:43

And we've put in a brand-new bed,

0:28:430:28:46

which turns into a study kind of area.

0:28:460:28:49

So whoever comes in, they can just walk in tomorrow morning

0:28:490:28:52

and start living.

0:28:520:28:54

And I'm quite pleased with the work which we carried out.

0:28:540:28:57

Harry's plan of reorganising the internal space

0:29:000:29:03

was met with firm refusal from the building's owners -

0:29:030:29:07

a hazard when buying leasehold properties such as this.

0:29:070:29:11

This space-saving bed IS one of the few things allowed,

0:29:110:29:14

but he did manage to take down the partition wall in the kitchen.

0:29:140:29:17

There used to be a small wall coming up, taken that out,

0:29:190:29:22

put new cooker in there,

0:29:220:29:25

new washing machine, integrated granite top,

0:29:250:29:28

so it gets more light within the unit itself.

0:29:280:29:32

And I think it's turned out quite great.

0:29:320:29:34

My wife is threatening to come and stay here!

0:29:340:29:37

Well, your wife obviously has impeccable taste, Harry,

0:29:400:29:43

but she'll have to join the queue,

0:29:430:29:45

as I suspect she won't be the only one knocking at the door.

0:29:450:29:48

# Someone knocking at the door

0:29:500:29:52

# Somebody ringing the bell. #

0:29:530:29:55

Harry kept to his budget of £15,000

0:29:570:30:00

and his builders managed to keep to the original schedule,

0:30:000:30:03

completing the job in four weeks.

0:30:030:30:05

Yes, it may be small, but I think you'll agree it's perfectly formed.

0:30:050:30:09

Time to get some opinions.

0:30:140:30:16

And valuations from two local estate agents.

0:30:160:30:19

One at a time, fellas.

0:30:190:30:20

Really nice. Very, very bright and airy.

0:30:220:30:24

The buyer has done a remarkable refurbishment on the property.

0:30:240:30:27

Has used the space really, really well.

0:30:270:30:30

Studios in this area particularly,

0:30:300:30:33

demand is very high both from investors and, obviously,

0:30:330:30:36

first-time buyers as well due to its proximity to the city.

0:30:360:30:39

Yeah, it's very, very contemporary.

0:30:390:30:41

Very minimalistic, which is what people like.

0:30:410:30:43

They don't want to have to come in somewhere and just completely redo it.

0:30:430:30:46

They want to just come in, put their suitcases down and live.

0:30:460:30:50

With £225,000 going on the purchase and then

0:30:500:30:53

a further £15,000 on renovation, Harry's total spend is 240,000.

0:30:530:31:00

Now, his intention is to put up the flat for sale.

0:31:000:31:02

But if he did decide to rent it out,

0:31:020:31:04

what's the going rate in this area?

0:31:040:31:07

I think at the moment, in this market, the vendor could

0:31:090:31:12

realise a figure of around about £1,150 per calendar month.

0:31:120:31:18

In terms of rental,

0:31:180:31:19

you'd be looking aroundabout £1,100 per calendar month.

0:31:190:31:23

Wow, living the high life, well, it doesn't come cheap.

0:31:240:31:28

So, what about sales values?

0:31:280:31:29

In terms of the property value since the work's been done,

0:31:310:31:35

I would suggest a marketing price between £275,000 and £285,000.

0:31:350:31:42

I would value this property at between 265 and £270,000.

0:31:420:31:46

With £20,000 between the lower and upper valuations, it could mean

0:31:480:31:52

a pre-tax profit for Harry of 25 to 45,000.

0:31:520:31:56

Already got an offer on the table at the moment of 280.

0:31:580:32:02

I think my target is the upper end, 285, actually, tomorrow morning,

0:32:020:32:07

if somebody comes with the offer of 290, I'll shake their hand

0:32:070:32:10

and walk away from it.

0:32:100:32:11

And has this hassle-free project whetted his appetite for more

0:32:140:32:18

property development?

0:32:180:32:19

The idea is to follow up with another property.

0:32:190:32:23

If I can catch hold of one.

0:32:230:32:24

Especially if I can get a property in this particular

0:32:240:32:27

block, it would be ideal.

0:32:270:32:28

Cradley Heath is seven miles from Birmingham and was

0:32:350:32:39

famous in the 19th and early 20th century for chain and nail making.

0:32:390:32:43

In 1910, women held a strike to protest against poor working

0:32:450:32:49

conditions and this statue commemorates their iron will

0:32:490:32:52

that changed the lives of thousands of workers.

0:32:520:32:55

So, just a 10-minute walk away from Cradley Heath town centre is

0:32:570:33:01

the property I'm here to see.

0:33:010:33:02

Has a guide price of in between, which I think's a steal,

0:33:020:33:06

60 to £65,000. It's a two-bed flat.

0:33:060:33:10

It's close to all the schools, a bus station,

0:33:100:33:13

a train track which is right there and the M5.

0:33:130:33:16

Let's hope it's made of steely stuff.

0:33:160:33:18

And anyone buying this flat will have to have the mettle to

0:33:200:33:23

climb to the second floor, which wouldn't suit everyone.

0:33:230:33:26

Really nicely kept communal areas on the way up to the flat.

0:33:290:33:33

Bright hallway which is a good start.

0:33:330:33:35

Small kitchen, down this bright hallway to a really big

0:33:350:33:41

lounge actually for a two-bed flat.

0:33:410:33:43

The window looks a little bit small for the size of that room

0:33:430:33:46

but still a bit of light coming in there. That's the bathroom.

0:33:460:33:50

We'll come back to that in a little while and the two bedrooms.

0:33:500:33:54

Bedroom one here, bedroom two there. Single bed in there not a problem

0:33:540:33:58

and the double bed in here overlooking Cradley Heath out here.

0:33:580:34:04

OK. Train tracks are very,

0:34:040:34:05

very close but a nice view over Cradley Heath all the same.

0:34:050:34:09

Let's hope these double glazed windows do the job.

0:34:090:34:12

If we listen carefully...

0:34:120:34:14

Yes, they do.

0:34:170:34:18

# Don't change a thing because you are a dream

0:34:200:34:25

# and I want you just the way you are... #

0:34:250:34:28

Well, that's not entirely true.

0:34:300:34:32

I would change the decor, spruce it up a little bit

0:34:320:34:35

and I want to give these carpets a little clean too.

0:34:350:34:39

But otherwise, not much to do.

0:34:390:34:40

However, I did say we'd come back to the bathroom.

0:34:420:34:47

OK, into the bathroom.

0:34:470:34:48

Now, this is the only place in the flat

0:34:480:34:50

I can see would need some immediate work done to it.

0:34:500:34:54

This piece of the bath is falling away

0:34:540:34:57

and as I pull it back I can see the signs of a leak of some sort

0:34:570:35:01

maybe coming from pipework or even from the shower.

0:35:010:35:06

The sink's a little bit wobbly as well so just start again in here.

0:35:060:35:11

Put a new bathroom in and I think you'd be off and running

0:35:110:35:14

but it wouldn't take you long and wouldn't cost you much.

0:35:140:35:17

Shaky sinks and broken baths are really the only things

0:35:180:35:22

you need to fix in this flat

0:35:220:35:24

and that guide price of £60-£65,000, what's not to like?

0:35:240:35:28

But will a local estate agent share my optimistic opinion?

0:35:300:35:34

First impressions of the property, I think it's a nice apartment,

0:35:360:35:40

quite spacious.

0:35:400:35:42

In general, in not bad condition, but could do with some painting

0:35:420:35:47

and cleaning of carpets.

0:35:470:35:50

I would estimate that you need to spend between 1.5 to £2,000.

0:35:500:35:56

Any negatives the estate agent can see?

0:35:560:35:59

This particular property is very close to the train line

0:35:590:36:02

so you are going to have some noise from when the trains go by.

0:36:020:36:06

Also, the fact it's on the second floor, it will limit the people

0:36:060:36:09

that would be choosing to purchase or rent this property out.

0:36:090:36:14

There may be noise from the trains but one silver lining is,

0:36:150:36:19

the local train station is right around the corner.

0:36:190:36:22

And it will get you to Birmingham in no time at all,

0:36:230:36:26

making this an ideal commuter property.

0:36:260:36:29

So, what might such a buyer pay for the flat?

0:36:290:36:33

Once renovated, I would say that this property would achieve £75,000.

0:36:330:36:37

Not a huge amount of profit there for resale but what about rental?

0:36:380:36:42

This property could achieve £450 per calendar month.

0:36:420:36:47

So, wouldn't take much to get this flat back up to standard,

0:36:470:36:50

fix that leak, get those carpets cleaned

0:36:500:36:52

and spruce it up with a bit of decorating.

0:36:520:36:54

I don't think it would take much to get this place ready for rental or even sale.

0:36:540:36:59

Let's see who saw the opportunity when it went under the hammer.

0:36:590:37:03

133, staying in the West Midlands we've got a self-contained

0:37:030:37:06

purpose-built second-floor flat start me at 50

0:37:060:37:10

for lot 133, opening at 50, please, 50, anywhere?

0:37:100:37:13

No? 50? Are you bidding? Scratching? You're bidding.

0:37:130:37:16

50 I have. 51 anywhere?

0:37:160:37:18

51. 52? 52. 53? 53. 54?

0:37:180:37:23

54. 55? 55. 56? No. 55 then.

0:37:230:37:29

56 anywhere else? 56. Seven? Seven. 58?

0:37:290:37:33

By the camera? 58. 59?

0:37:330:37:36

Yes, sir, thank you, 60. 60 I'm bid.

0:37:360:37:39

61? No. 60 by the camera, 61 anywhere?

0:37:390:37:43

First time at 60 then. Second time at 60.

0:37:430:37:45

Third and last time at £60,000.

0:37:470:37:49

Cradley Heath. Against you there. All done?

0:37:490:37:51

Sold at 60. Got it.

0:37:520:37:54

So, from the bottom of the guide price of £60,000, Gurprit

0:37:540:37:58

snapped this up for him and his business partner.

0:37:580:38:02

Together they have a growing property portfolio

0:38:020:38:04

as well as running a small transport company.

0:38:040:38:08

I met local man, Gurprit, back at his new property, to find out his plans.

0:38:080:38:12

-Gurprit, nice to meet you.

-Nice to meet you.

0:38:120:38:14

Congratulations as well, pal.

0:38:140:38:16

Why, why this particular property?

0:38:160:38:18

It was going cheap. HE LAUGHS

0:38:180:38:20

At auction, when you went,

0:38:200:38:21

did you go alone, with your business partner?

0:38:210:38:23

No, I went on my own. Yeah, he was busy running the business.

0:38:230:38:26

-Ah, making the money elsewhere?

-That's right. Yeah.

0:38:260:38:28

And tell us, did you go for anything else?

0:38:280:38:30

Just for this one in particular or was there a list of them?

0:38:300:38:33

Well, there's this one and there's one in the next block

0:38:330:38:35

and fortunately I managed to get them both.

0:38:350:38:38

So, do you look, do you look in this area only

0:38:380:38:40

when you're looking for property?

0:38:400:38:41

Just not too far from home and this is about the first,

0:38:410:38:45

I'm only 10 or 15 minutes drive from here, so...

0:38:450:38:48

Two purchases locally in a potentially strong rental area

0:38:490:38:53

makes sense for Gurprit's business.

0:38:530:38:56

Buying locally has its advantages.

0:38:560:38:58

Nobody knows home better than you.

0:38:580:39:00

It's often easier to find a tenant and if you need to do any jobs,

0:39:000:39:03

big or small, you're just around the corner.

0:39:030:39:06

# There ain't no place That I'd rather be....

0:39:070:39:12

# Next to you Next to me. #

0:39:120:39:15

Although I think this place doesn't really call for a lot of work.

0:39:150:39:19

So, tell us what you're going to do. What do you have to do?

0:39:200:39:24

There is very little to do. Cleaning of the carpets.

0:39:240:39:27

Um...the bathroom just needs a little bit of inspecting, there's

0:39:270:39:31

been a leak and very, very little else really.

0:39:310:39:34

-I think it's going to be a quick turnaround?

-A quick turnaround.

0:39:340:39:37

Straight...rent it straight out.

0:39:370:39:39

So it's not your full-time job this, is it, your property developing?

0:39:390:39:42

-No, no, I'm a white van man.

-You're a white van man?

0:39:420:39:44

That's what I do, yeah. We're a small tran job, yeah.

0:39:440:39:47

And this is just a bit of a...?

0:39:470:39:49

Yeah, this, this, again, this, I was attracted to this property

0:39:490:39:52

because we're quite busy at work and haven't really got the time to be,

0:39:520:39:55

you know, getting stuck into the renovations because we have had properties

0:39:550:40:01

where we've had to do a bit more work and it takes a lot of time up and at

0:40:010:40:05

the moment builders are a bit thin on the ground because they're all busy.

0:40:050:40:08

And, um, I just thought this was a nice quick turnaround,

0:40:080:40:11

get it rented out and it shouldn't be too much of a headache.

0:40:110:40:15

It's pretty close to coming back and seeing the finished article,

0:40:150:40:18

-this one.

-Yeah.

-I can't see anything.

-We'll be done in a week.

0:40:180:40:22

And what will you spend on it? What are you hoping to spend on it?

0:40:220:40:25

Hoping just a few hundred pounds really. HE LAUGHS

0:40:250:40:28

Rent a carpet cleaner and that's it and, um, the odd lick of paint.

0:40:280:40:33

Just investigate, as I say, the bathroom, just to see

0:40:330:40:35

if there's any plumbing issues.

0:40:350:40:38

It shouldn't be, it should cost just a few hundred pounds.

0:40:380:40:40

So, Gurprit, how are you managing to cram this into your busy

0:40:400:40:44

life as well, because you're full-time with your white van man business?

0:40:440:40:48

That was the, that was the attraction to this property in particular

0:40:480:40:51

because it's such a quick turnaround

0:40:510:40:53

and at the moment we are busy at work

0:40:530:40:57

so can't afford to be too far away from my desk or on my steering wheel

0:40:570:41:02

so, so, that's why I thought just do this quick

0:41:020:41:07

and get back to the day-to-day.

0:41:070:41:09

That's what pays the bills really.

0:41:090:41:11

A few hundred pounds and seven day's work.

0:41:140:41:16

Ideal for Gurprit, so he can concentrate on his day job

0:41:160:41:19

which is running his transport company.

0:41:190:41:22

Erm, well, I've always had a keen eye for property.

0:41:220:41:27

I mean, I lost my father over 30 years ago

0:41:270:41:29

and he used to say you'll never go wrong in property.

0:41:290:41:32

Unfortunately, both myself

0:41:320:41:33

and my business partner were made redundant in the early 2000s.

0:41:330:41:38

We were able to, with funding,

0:41:380:41:40

buy the premises where we work from and we managed to rent that out

0:41:400:41:44

and we get a good return on that from a blue-chip metal recycler

0:41:440:41:49

and it's that that's allowed us to go back to the banks and lend against

0:41:490:41:54

it and buy a couple of properties and it's gone on from there really.

0:41:540:41:58

So you're sort of doing it in stages, aren't you?

0:41:580:42:01

You sort of made sure that the backbone's nice and strong.

0:42:010:42:04

-That's right, yeah.

-And built from there?

0:42:040:42:06

Yeah, and we were fortunate in 2008 when the wheel fell off it's axle

0:42:060:42:11

that the banks were...agreed to lend to us

0:42:110:42:16

against our existing property, our commercial property

0:42:160:42:21

and that allowed us to buy a couple of houses.

0:42:210:42:23

And will you deviate from the renting?

0:42:230:42:25

Will you maybe buy for even yourself or will you buy to

0:42:250:42:29

sell at any time or does it depend on what's out there?

0:42:290:42:31

It's depending what's out there. If I can get a good price to sell it then everything's for sale.

0:42:310:42:36

-Yes, at the right price. Including footballers.

-Yeah, absolutely.

0:42:360:42:41

And I know you're a Villa fan.

0:42:410:42:42

-And they need some players at the moment.

-Yeah, they do.

0:42:420:42:45

Could do with you putting your boots back on really, couldn't they?

0:42:450:42:48

Mine have got cobwebs on now. I'm steering clear of that.

0:42:480:42:51

-You're doing better than some of them.

-Good luck, pal.

0:42:510:42:56

-See you soon.

-Cheers.

0:42:560:42:59

I think Gurprit's onto a winner here.

0:42:590:43:01

Two-bedroom flat for only £60,000, in this condition?

0:43:010:43:06

I don't think it's exactly going to test his mettle, do you?

0:43:060:43:08

You can find out how he gets on later on in the programme.

0:43:080:43:11

So, we've seen how one of today's properties turned out.

0:43:140:43:17

Yes, it's time to see what happened to the others.

0:43:170:43:19

But is it time and money well spent?

0:43:190:43:21

Pontygwaith was the Welsh valley village I visited earlier where

0:43:250:43:29

I saw a two-bed mid-terrace guided at £19,000.

0:43:290:43:34

# I'm not free but I'm cheap. #

0:43:340:43:40

With such a low guide price I didn't have high

0:43:420:43:45

expectations for the property.

0:43:450:43:47

It was in need of total modernisation

0:43:470:43:49

but it was the layout that flummoxed me.

0:43:490:43:52

Front living room into your rear sort of sitting room

0:43:530:43:58

but then through to, what, what do you think?

0:43:580:44:02

Well, it's bound to be here.

0:44:020:44:04

You know. It's a ki...ki...no, it's not. It's not a kitchen.

0:44:040:44:10

It's like a third sort of living room area.

0:44:100:44:13

The kitchen is actually out there in what looks like an extension bit.

0:44:130:44:17

What were they thinking?

0:44:170:44:21

Cezar was thinking about profit

0:44:210:44:23

when he purchased this at auction for £30,000.

0:44:230:44:27

The locksmith and keen DIYer was roaming pretty

0:44:270:44:31

far from home for this renovation.

0:44:310:44:33

I live in West London so I just jump on M4 and come over here.

0:44:350:44:38

-You're from London?

-I am, yeah.

0:44:380:44:40

I prefer this area because very nice area and I hate London, so I'm

0:44:400:44:45

looking for an area to move over the next couple of years or so.

0:44:450:44:48

Well, Rome wasn't built in a day

0:44:480:44:50

and Cezar knew there was a lot of renovation ahead.

0:44:500:44:54

Four months later and we're back to see what changes Cezar has

0:44:540:44:58

made to the property.

0:44:580:45:01

# I.... I got work to do

0:45:010:45:06

# I got work, baby I got work to do

0:45:060:45:09

# I got a job, baby I got work to do. #

0:45:090:45:11

Although it's not quite finished yet, the results are impressive.

0:45:140:45:18

How did Cezar get on with his three living rooms?

0:45:180:45:22

We opened up like, 2.5 metres or something.

0:45:220:45:25

We didn't want to open up the whole space.

0:45:250:45:28

It was a massive job so we just left an open space.

0:45:280:45:31

I think it looks nice.

0:45:310:45:33

So, as promised, Cezar has knocked two living rooms into one.

0:45:330:45:37

A much more sensible solution. And what about that kitchen?

0:45:370:45:41

The old extension, it was a broken beam into the ceiling which

0:45:420:45:46

we replaced and put a new kitchen in.

0:45:460:45:49

As I hoped, he moved the kitchen into the third living room.

0:45:510:45:55

Downstairs had a lot of damp. Is that fixed?

0:45:550:45:58

Damp, especially in the second reception room

0:46:000:46:03

was from the leaking roof on the extension.

0:46:030:46:07

Soon as we fixed that leaking problem, the damp disappeared.

0:46:080:46:12

# I got work to do

0:46:140:46:17

# I got work to do I got work to do

0:46:180:46:21

The garden was overgrown and messy. What happened there?

0:46:210:46:25

The garden we worked for about two days,

0:46:250:46:28

it was like a small forest in there.

0:46:280:46:30

Very, very hard work.

0:46:300:46:32

We just have to do some more cleaning or put some grass in there maybe.

0:46:320:46:37

We'll see.

0:46:370:46:38

# Work, work, yeah Work, work

0:46:380:46:41

The large bathroom has stayed put

0:46:410:46:43

but it has been modernised, complete with a separate shower unit

0:46:430:46:47

and thankfully, that avocado suite has been confined to history.

0:46:470:46:51

Possibly, we wanted to keep the bathroom upstairs,

0:46:510:46:54

not to move it downstairs like some of the people said or recommended.

0:46:540:46:58

So we put a boiler in there. Just installed everything

0:46:580:47:01

like a shower, a new bathtub, toilet, sink, some laminate.

0:47:010:47:05

It's very good.

0:47:050:47:07

The two bedrooms are looking much smarter now,

0:47:070:47:10

so what's happened in here?

0:47:100:47:12

For the bedroom, all the walls have been re-plastered. Dry lining.

0:47:120:47:16

And the plaster's on top.

0:47:160:47:18

# Got so much work, yeah Got work to do

0:47:180:47:21

This property has been totally revamped and is looking great

0:47:210:47:25

but what about that loft conversion Cezar was keen to do?

0:47:250:47:28

# Work, yeah, yeah

0:47:280:47:30

And he did it but this hard worker isn't quite satisfied.

0:47:310:47:36

For the loft, I built some stairs, which are not very good, I think.

0:47:370:47:43

We're just going to change those with new ones to meet

0:47:430:47:47

building regulations. The loft, I think it's a very, very nice room.

0:47:470:47:50

# I got work to do Work to do, work, work, work

0:47:500:47:54

I'm a little exhausted just listening to all these jobs!

0:47:540:47:58

He didn't do all this himself, did he?

0:47:580:48:01

# I got a job my darling

0:48:020:48:04

# I got work to do Work to do. #

0:48:040:48:06

I've done the boiler myself for the first time,

0:48:060:48:08

all the pipework, all the radiators, everything.

0:48:080:48:11

We called out a gas engineer to connect the gas for us.

0:48:110:48:13

I fitted the bathroom, everything in the bathroom, myself.

0:48:130:48:16

The kitchen, floor, pretty much everything except plastering.

0:48:160:48:20

I'm not very good at plastering, so...

0:48:200:48:23

Cezar is over his timescale by a few weeks and thinks another

0:48:230:48:27

two weeks will be needed to finish, but is he over budget?

0:48:270:48:31

Initial budget was £10,000

0:48:320:48:34

so we ended up spending about 14,000-15,000.

0:48:340:48:38

Mostly because of the loft conversion.

0:48:380:48:41

And we also had to pay for four skips.

0:48:410:48:45

Hard work over. Well, almost, but now it is time to invite

0:48:470:48:50

two local property experts to give their thoughts and I'd also like

0:48:500:48:55

to know if that loft conversion will add value and will the values be

0:48:550:48:59

enough for Cezar to make a profit on his £45,000 outlay thus far?

0:48:590:49:04

This is my second visit to the property.

0:49:060:49:08

The renovation work has been done to a very good standard.

0:49:080:49:10

The layout has been improved in my opinion.

0:49:100:49:13

I think, opening up the two reception rooms

0:49:130:49:19

will make it a lot more appealing to potential buyers.

0:49:190:49:23

Yes, definitely, adding the loft room will add some value to the property.

0:49:230:49:26

The loft conversion probably won't be classed as a bedroom due to

0:49:260:49:30

building regulations, stipulations, given the stairs and doorway.

0:49:300:49:35

Yes, even Cezar admitted these stairs probably won't meet

0:49:350:49:39

building regulations, meaning he can't resell this as a three-bed.

0:49:390:49:43

Always best to work with your local planning department

0:49:430:49:45

on such conversions.

0:49:450:49:47

With Cezar looking to sell the property,

0:49:470:49:49

he will be keen to hear those all-important valuations.

0:49:490:49:52

On the sales market,

0:49:550:49:56

we would hope the property would achieve between £65,000 and £70,000.

0:49:560:50:00

On the rental market, between £395 and £415 per calendar month.

0:50:000:50:06

If I was to put the property on the market today,

0:50:060:50:08

I would expect it to achieve around £65,000.

0:50:080:50:12

If I was to put the property on the market for rental purposes,

0:50:120:50:16

I would expect it to achieve around £400 per calendar month.

0:50:160:50:20

With that higher rental valuation of £415 per calendar month,

0:50:200:50:24

Cezar would have a healthy 11% yield. While reselling at £70,000

0:50:240:50:30

could bring him a £25,000 profit before the usual taxes and expenses.

0:50:300:50:36

I think they are very good, especially the first one, 65 to 70,

0:50:360:50:40

it is exactly what I had in mind.

0:50:400:50:41

I am not really interested in going rental

0:50:410:50:43

so the plan is to put the property up for sale.

0:50:430:50:46

Six days a week, living far from home was the downside

0:50:480:50:52

to this project, but could he be tempted to do it all over again?

0:50:520:50:56

If you ask me now - no. Maybe if you ask me in a week's time - yes.

0:50:560:51:00

We return to Cradley Heath just outside Birmingham where I saw

0:51:060:51:09

a two-bed flat guided at £60,000-£65,000

0:51:090:51:13

and first impressions were strong.

0:51:130:51:16

Right, hallway, which is a good start. It is a small kitchen,

0:51:160:51:19

a bit of TLC, you could turn that round.

0:51:190:51:22

But surely, being close to train tracks, that would be a problem.

0:51:220:51:26

Let's hope these double-glazed windows do the job,

0:51:260:51:30

if we listen carefully.

0:51:300:51:32

Yes, they do.

0:51:350:51:36

# It's all good. #

0:51:370:51:39

But it wasn't quite all good.

0:51:410:51:43

I finally found some work to do in the bathroom.

0:51:430:51:45

This piece of the bath is falling away and as I pull it back,

0:51:450:51:49

I can see the signs of a leak. Just start again in here,

0:51:490:51:52

put a new bathroom in and I think you'd be off and running.

0:51:520:51:56

The property was a sideline for self-confessed white van man,

0:51:570:52:00

Gurprit. And this £60,000 purchase at auction

0:52:000:52:03

was one of two purchases he made on the day.

0:52:030:52:06

But this one had so little work needed, I thought...

0:52:070:52:11

It is pretty close to coming back and seeing the finished article,

0:52:110:52:14

-this one.

-Yeah.

-There is nothing here. I can't see anything...

0:52:140:52:17

-We'll be done in a week.

-And what would you spend on it,

0:52:170:52:20

-what are you hoping to spend on it?

-Hoping just a few hundred pounds.

0:52:200:52:23

-Really?

-Rent a carpet cleaner and that's it.

0:52:230:52:28

MUSIC: 'Pompeii' by Bastille.

0:52:280:52:29

All in all, clean the carpets, touch up the paint

0:52:290:52:32

and a few odd jobs to do.

0:52:320:52:34

So when we went back just over a month later,

0:52:340:52:37

we weren't expecting huge transformations.

0:52:370:52:39

# But if you close your eyes

0:52:390:52:42

# Does it almost feel like Nothing changed at all?

0:52:420:52:47

# And if you close your eyes

0:52:470:52:49

# Does it almost feel like You've been here before? #

0:52:490:52:54

And that's because the flat didn't need a big overhaul

0:52:560:52:59

but time to find out from Gurprit what work he did do.

0:52:590:53:02

What we've done here is, we've given the whole flat a lick of paint,

0:53:030:53:08

freshened it up.

0:53:080:53:09

New taps in the bathroom, sink and bath.

0:53:090:53:14

New tap and sink in the kitchen.

0:53:140:53:17

There were a couple of lights weren't working, the electrician has

0:53:170:53:20

solved the problem, I'm not sure if he put a new light in the bathroom.

0:53:200:53:23

Other than that, the boiler service. We have cleaned the carpets,

0:53:230:53:26

we had a carpet cleaner in to clean the carpets.

0:53:260:53:29

So, who did the work? Did Gurprit get in and get his hands dirty?

0:53:310:53:36

Just a couple of fellows we use regularly on different jobs.

0:53:360:53:40

They happened to be free and a general builder and his labourer.

0:53:400:53:45

I come and go all the time they are here

0:53:450:53:48

and I am a bit of a gopher and I go and get whatever they need,

0:53:480:53:51

paint and bits so they can just come straight in and get the job done.

0:53:510:53:55

I helped take the kitchen sink out, that was about it.

0:53:550:53:57

Got underneath, just gave them a hand getting the kitchen sink out.

0:53:570:54:00

I put in about 20 minutes' physical work.

0:54:000:54:03

So, nothing but the kitchen sink, hey, Gurprit?

0:54:030:54:06

It took five days in total to finish the work

0:54:080:54:10

but how much did he end up spending?

0:54:100:54:13

Did he stray above his intended few hundred quid?

0:54:130:54:16

It's been about £1,000, yeah.

0:54:160:54:18

It was about that.

0:54:190:54:20

Gurprit is looking to rent the property, but as a landlord,

0:54:220:54:25

he has certain obligations to fulfil before tenants can move in.

0:54:250:54:29

By law, landlords are required to have an annual inspection

0:54:310:54:34

of gas supply and appliances

0:54:340:54:36

and it must be done by a registered gas engineer.

0:54:360:54:39

The record of this safety check should be kept by the landlord

0:54:410:54:43

and the tenant should also be given a copy.

0:54:430:54:46

The landlord responsibilities are just the gas safety check

0:54:460:54:49

on the boiler which has been done and we have serviced it as well.

0:54:490:54:53

We have had a look at the electrics, we haven't got a certificate

0:54:530:54:55

but we just made sure everything works really, with the electrics.

0:54:550:54:58

There is no obligation to put a full certificate or anything like that.

0:54:580:55:02

And with that work done, Gurprit has lined up a tenant.

0:55:070:55:11

Will the agents be impressed with his budget renovation?

0:55:110:55:14

Let's start with the agent who saw it when we first visited.

0:55:140:55:18

Overall, I think he has done a good refurbishment of it.

0:55:180:55:22

Very tidy, clean. Nice, neutral colours.

0:55:220:55:26

So, overall, I think he has done a good job.

0:55:260:55:29

I think it is nice. Neutral colours, it is quite well presented.

0:55:290:55:33

The flat was already in good condition

0:55:350:55:36

but in the opinion of the estate agents, was there anything

0:55:360:55:39

that Gurprit could have done to increase the value?

0:55:390:55:43

I think it is worth replacing the carpets for rental.

0:55:430:55:46

I think by replacing the carpets, we would probably

0:55:460:55:48

get at least £2,000 to £3,000 increase in the selling price.

0:55:480:55:53

So changing the carpets would add value.

0:55:530:55:56

Something for Gurprit to think about

0:55:560:55:57

if he considers selling the property.

0:55:570:56:01

So what are those sales prices

0:56:010:56:02

and can Gurprit make a profit from his £61,000 total spend?

0:56:020:56:08

I would expect it to achieve in the region of £80,000.

0:56:080:56:11

If I was advising an investor, I would certainly recommend

0:56:110:56:14

keeping the property to rent for the next two or three years

0:56:140:56:17

in line with trends in the current area.

0:56:170:56:20

This property could achieve between £75,000 and £79,000.

0:56:200:56:25

I feel very pleased with that, yeah.

0:56:250:56:27

But a potential £19,000 pre-tax profit isn't enough

0:56:280:56:31

to change Gurprit's mind.

0:56:310:56:34

He wants to rent for the long-term, so what rental figures

0:56:340:56:37

can he expect and does it match up to what he is already achieving

0:56:370:56:40

with his portfolio in the local area?

0:56:400:56:43

This property could achieve for rental, £500 per calendar month.

0:56:440:56:49

I would expect to achieve around 525 per calendar month.

0:56:490:56:52

Yeah, I am pleased with that.

0:56:520:56:54

We have put the other one out to rent at 495

0:56:540:56:58

and within a week it was rented out.

0:56:580:57:01

We would prefer not to be too greedy on the rental side

0:57:010:57:04

so we would prefer to have some longevity with the tenant

0:57:040:57:07

and we're a bit fussy as to who we would give the property to.

0:57:070:57:12

£25 a month is not going to make a lot of difference.

0:57:120:57:14

We'd rather do it a little bit cheaper

0:57:140:57:16

and have somebody for the long-term.

0:57:160:57:19

At a top estimate of £525 per calendar month,

0:57:200:57:24

Gurprit could make a 10.3% yield.

0:57:240:57:27

But he is right, better to have a good tenant

0:57:270:57:30

than a little extra cash,

0:57:300:57:31

as the difference in yield for his rate is just 0.6%.

0:57:310:57:35

Gurprit has a growing rental portfolio and

0:57:360:57:38

when they're as easy as this to turn around, he must be a happy man.

0:57:380:57:43

Quite happy, particularly with those valuations.

0:57:430:57:46

I mean, it's a result, really, isn't it?

0:57:460:57:48

Well, that's it for today's show.

0:57:510:57:52

We hope you enjoyed seeing what today's buyers did.

0:57:520:57:56

And picked up some valuable information along the way.

0:57:560:57:58

So make sure you join us next time for more Homes Under The Hammers.

0:57:580:58:01

-We will see you, then.

-Goodbye.

0:58:010:58:03

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