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Hello there. Is it a good time to invest? | 0:00:02 | 0:00:03 | |
Property prices are reaching all-time highs | 0:00:03 | 0:00:05 | |
in parts of the country. | 0:00:05 | 0:00:06 | |
But be aware, because your cash might not go as far as it used to. | 0:00:06 | 0:00:09 | |
Yes, getting a good deal is a priority. | 0:00:09 | 0:00:12 | |
And one way you can do that is by visiting your local auction. | 0:00:12 | 0:00:15 | |
So, do you fancy nipping along to your local auction room | 0:00:41 | 0:00:43 | |
and finding out what's on offer? | 0:00:43 | 0:00:45 | |
That's exactly what today's buyers did. | 0:00:45 | 0:00:47 | |
Let's see what they came away with. | 0:00:47 | 0:00:49 | |
In Stoke, a two-bed semi has plenty of options for a layout change. | 0:00:50 | 0:00:55 | |
What there is, it just works. | 0:00:55 | 0:00:57 | |
Well, it will when you fiddle about with it a bit. | 0:00:57 | 0:01:01 | |
Get the sledgehammer in Willesden Green. | 0:01:01 | 0:01:03 | |
Plenty of possibilities in this London flat. | 0:01:03 | 0:01:05 | |
I'd like to see that come down. | 0:01:05 | 0:01:07 | |
And you know what I'm going to say - open the space up. | 0:01:07 | 0:01:10 | |
And in Dudley, you're spoilt for choice in this mid-terrace. | 0:01:12 | 0:01:16 | |
Two bathrooms for a two-bedroom house. Decisions to be made. | 0:01:16 | 0:01:21 | |
All these properties were bought at auction. | 0:01:21 | 0:01:24 | |
We'll find out who got them and how much they paid, | 0:01:24 | 0:01:26 | |
when these homes went under the hammer. | 0:01:26 | 0:01:30 | |
You bought it, sir. | 0:01:30 | 0:01:32 | |
Just on the outskirts of Stoke is the suburb of Meir. | 0:01:34 | 0:01:37 | |
And the estate is built on the site of a former RAF aerodrome | 0:01:37 | 0:01:41 | |
that closed in 1973. | 0:01:41 | 0:01:44 | |
But with lots of amenities and good housing stock, | 0:01:44 | 0:01:47 | |
it's plain to see why this is a great place to live. | 0:01:47 | 0:01:50 | |
When it comes to choosing a house, it's not just about the property, | 0:01:53 | 0:01:57 | |
it's about the outlook, the surroundings. | 0:01:57 | 0:01:59 | |
This is a really great start. | 0:01:59 | 0:02:02 | |
Because right opposite the property I'm here to see is this | 0:02:02 | 0:02:05 | |
lovely open space. The house itself? It sounds pretty good. | 0:02:05 | 0:02:08 | |
£50,000 plus was the guide price for this. Semidetached, two beds. | 0:02:08 | 0:02:13 | |
Let's have a look. | 0:02:13 | 0:02:15 | |
Ooh. Not a very good start, is it? | 0:02:19 | 0:02:21 | |
It is a modern-ish door | 0:02:21 | 0:02:22 | |
but it doesn't seem to be in very good condition. Hmm. | 0:02:22 | 0:02:26 | |
That's not brilliant either. | 0:02:26 | 0:02:29 | |
I feel like I'm going to come out and come in again! | 0:02:29 | 0:02:31 | |
A bit of damp, the moment you come through the front door there. | 0:02:31 | 0:02:35 | |
So, not the most auspicious of beginnings. But... | 0:02:35 | 0:02:39 | |
you get to this part and, actually, it's OK. | 0:02:39 | 0:02:42 | |
It's a nice-sized front living room. It's very dated. | 0:02:42 | 0:02:45 | |
I mean, the whole place is just saying, "Bring me up to date!" | 0:02:45 | 0:02:49 | |
Storage radiator here. | 0:02:49 | 0:02:50 | |
Obviously, you haven't got central heating, so that's something | 0:02:50 | 0:02:54 | |
you're going to have to factor into your budget. | 0:02:54 | 0:02:57 | |
Erm, through here? | 0:02:57 | 0:02:58 | |
Oh, right. Understairs cupboard. | 0:02:58 | 0:03:01 | |
That's a very grand door for an understairs cupboard, isn't it? | 0:03:01 | 0:03:05 | |
Onwards and through. OK. Through here, kitchen. Which is all right. | 0:03:06 | 0:03:11 | |
A downstairs loo, which is quite useful. | 0:03:11 | 0:03:14 | |
The kitchen itself is not a bad size, actually. | 0:03:14 | 0:03:16 | |
Clearly, units need replacing. | 0:03:16 | 0:03:19 | |
You might even want to open up that window, drop it down, | 0:03:19 | 0:03:23 | |
you'd lose a lot of space, in terms of where you could put units. | 0:03:23 | 0:03:26 | |
But maybe... I think that's a rubbish idea, actually. | 0:03:26 | 0:03:29 | |
This is what happens when you are thinking about properties. | 0:03:29 | 0:03:32 | |
You design as you go along. | 0:03:32 | 0:03:33 | |
You get first impressions, then you go, "That's rubbish." | 0:03:33 | 0:03:36 | |
The important thing is to recognise they're rubbish. | 0:03:36 | 0:03:38 | |
That was a rubbish idea I just gave you. Keep it as it is. | 0:03:38 | 0:03:41 | |
Cos you need the space for work surfaces. | 0:03:41 | 0:03:43 | |
This is a kitchen, for goodness' sake. So, yeah, what could you do? | 0:03:43 | 0:03:46 | |
Yes. Replace the units, really nice. I mean, there isn't a lot, | 0:03:46 | 0:03:49 | |
but what there is, it just works. | 0:03:49 | 0:03:53 | |
Well, it will when you fiddle about with it a bit. | 0:03:53 | 0:03:55 | |
A little idea light bulb went on in my mind and then the power went off. | 0:03:55 | 0:04:01 | |
Never mind. Let's see if I can cast more light on things as we go. | 0:04:01 | 0:04:05 | |
So, upstairs. Halfway up the stairs. | 0:04:10 | 0:04:13 | |
-HE LAUGHS -One of the original windows. | 0:04:13 | 0:04:16 | |
Sash window. Look at that. It's quite sweet. | 0:04:16 | 0:04:18 | |
I wonder if you could renovate it. Maybe. | 0:04:18 | 0:04:21 | |
Really large double bedroom at the front, which is lovely. The master. | 0:04:21 | 0:04:26 | |
And, of course, it benefits from those views out across the green. | 0:04:26 | 0:04:29 | |
You've got a bathroom. It's not bad. Size. | 0:04:29 | 0:04:32 | |
You've got a bath in there, as you might expect. | 0:04:32 | 0:04:34 | |
But it's a reasonable size family bathroom, which is good. | 0:04:34 | 0:04:38 | |
The second bedroom, there are only two, is... | 0:04:38 | 0:04:40 | |
is at the back of the property here, and some lovely fitted units. | 0:04:40 | 0:04:45 | |
Reminds me of a caravan, in some ways. | 0:04:45 | 0:04:47 | |
Probably want to get rid of them though, wouldn't you? | 0:04:49 | 0:04:51 | |
And once you've got rid of them, | 0:04:51 | 0:04:54 | |
you'll realise how much space is really up here. | 0:04:54 | 0:04:57 | |
Between the two bedrooms, | 0:04:57 | 0:04:58 | |
I think there's actually space for a third with a few layout changes. | 0:04:58 | 0:05:02 | |
And, if you follow me outside, | 0:05:02 | 0:05:04 | |
I'll show you another way to create space. | 0:05:04 | 0:05:07 | |
So, out through a little side door of the property. | 0:05:09 | 0:05:12 | |
You get to see this nice driveway here, which is good news. | 0:05:12 | 0:05:15 | |
It leads to a garage, which, unfortunately, | 0:05:15 | 0:05:18 | |
isn't good news at all. | 0:05:18 | 0:05:20 | |
I reckon that's partly asbestos, | 0:05:20 | 0:05:21 | |
so that needs to be got rid of very carefully by a specialist company. | 0:05:21 | 0:05:26 | |
But at the back of the house, more good news. | 0:05:26 | 0:05:28 | |
A decent-sized garden, which is nice. | 0:05:28 | 0:05:31 | |
Then this space here, which I think is perfect for an extension. | 0:05:31 | 0:05:35 | |
In fact, what next door have done. Stick a big extension on here. | 0:05:35 | 0:05:39 | |
Maybe one storey, maybe two storeys, that would really add to | 0:05:39 | 0:05:42 | |
what is already, potentially, a really nice family home. | 0:05:42 | 0:05:45 | |
Yes, it does need modernisation. | 0:05:45 | 0:05:48 | |
But with or without extension, there's enough room for you, | 0:05:48 | 0:05:51 | |
the other half and some little ones running around. | 0:05:51 | 0:05:55 | |
What can a local estate agent tell us | 0:05:55 | 0:05:57 | |
about the area and the property? | 0:05:57 | 0:05:59 | |
In the local area, the rental market is the strongest. | 0:05:59 | 0:06:02 | |
If this was my property, I would have gas central heating fitted | 0:06:02 | 0:06:06 | |
and also redecorate through to bring it up to a more modern standard | 0:06:06 | 0:06:09 | |
and I'd be replacing the kitchen and the bathroom. | 0:06:09 | 0:06:11 | |
Then look at putting it on the rental market. | 0:06:11 | 0:06:13 | |
The agent thinks the rental market is best for this property. | 0:06:13 | 0:06:17 | |
It doesn't sound like an extension would be her favoured route. | 0:06:17 | 0:06:20 | |
So how much would it cost to get this up to rental standard? | 0:06:20 | 0:06:24 | |
My estimate for refurbishing the property would be | 0:06:25 | 0:06:28 | |
in the region of £10,000-£15,000. | 0:06:28 | 0:06:30 | |
The breakdown of them costs would be somewhere in the region | 0:06:30 | 0:06:33 | |
of £5,000 for having the gas central heating fitted, | 0:06:33 | 0:06:36 | |
then in the region of £5,000-£10,000 | 0:06:36 | 0:06:38 | |
for redecoration and replacing the kitchen and bathroom. | 0:06:38 | 0:06:41 | |
So, £10,000-£15,000 on top of that £50,000 guide price | 0:06:43 | 0:06:47 | |
could mean a total cost of around £65,000. | 0:06:47 | 0:06:51 | |
Do the values make the investment worthwhile? | 0:06:51 | 0:06:54 | |
Once the work's completed, I'd place this property | 0:06:57 | 0:07:00 | |
on the rental market in the region of £400-£425 per calendar month. | 0:07:00 | 0:07:04 | |
For resale value, somewhere in the region of £70,000-£75,000. | 0:07:04 | 0:07:08 | |
Those figures could mean around an 8% yield. | 0:07:08 | 0:07:12 | |
If you wanted to rent this property out, | 0:07:12 | 0:07:14 | |
there could be a profit it in it, but it's not a great sales market | 0:07:14 | 0:07:18 | |
and you would need to be very careful not to overspend. | 0:07:18 | 0:07:21 | |
Well, clearly, it needed some modernisation, this one. | 0:07:22 | 0:07:25 | |
Once done, this could be a really lovely family home | 0:07:25 | 0:07:28 | |
with all that space around the back. It's got a lovely feel to it. | 0:07:28 | 0:07:32 | |
Let's see who agreed when it went under the hammer. | 0:07:32 | 0:07:34 | |
Lot 21. Guide price on this has been reduced down to £40,000. | 0:07:34 | 0:07:39 | |
We do want to sell it. 35,000, can I say to start? | 0:07:39 | 0:07:43 | |
Who will give me 35 to start with? 35 bid there. At £35,000. | 0:07:43 | 0:07:48 | |
Going once, 36 back left. | 0:07:48 | 0:07:50 | |
At 36,000. 37? 37,000. | 0:07:50 | 0:07:53 | |
38? | 0:07:53 | 0:07:55 | |
39? | 0:07:55 | 0:07:56 | |
No? | 0:07:56 | 0:07:58 | |
At 39,000, to my right. Looking for 40 now. | 0:07:58 | 0:08:01 | |
40,000 bid on the internet. | 0:08:01 | 0:08:03 | |
At £40,000? 41 anywhere else? | 0:08:03 | 0:08:06 | |
41 in the room. 42 on the net. | 0:08:06 | 0:08:10 | |
42? | 0:08:11 | 0:08:13 | |
43? 44 on the net. | 0:08:13 | 0:08:15 | |
45? 46 on the net. 47? 48 on the net. | 0:08:15 | 0:08:21 | |
49, sir? | 0:08:21 | 0:08:23 | |
49. 50 on the net? | 0:08:23 | 0:08:26 | |
51? 51. 52 on the net? | 0:08:26 | 0:08:29 | |
53, sir? | 0:08:29 | 0:08:31 | |
Shaking his head. 52,000, the bid's on the internet. At £52,000. | 0:08:31 | 0:08:35 | |
I'm selling it on the internet. He's back in. 53. | 0:08:35 | 0:08:37 | |
I think you're out now, aren't you? | 0:08:39 | 0:08:41 | |
Out on the net, so it's in the room at £53,000. | 0:08:41 | 0:08:43 | |
Another one anywhere else? £53,000 once then. £53,000 twice. | 0:08:43 | 0:08:49 | |
Third and final time, at £53,000. | 0:08:49 | 0:08:52 | |
You bought it, sir. Well done. | 0:08:53 | 0:08:55 | |
So, despite the guide price being drastically reduced, | 0:08:55 | 0:08:58 | |
the dated house did go for near the original guide, and it was | 0:08:58 | 0:09:02 | |
bought by John - who's just obscured from our view - for £53,000. | 0:09:02 | 0:09:08 | |
He has 40 years of property development experience behind him. | 0:09:08 | 0:09:12 | |
So I was keen to find out what he had planned for this two-bed semi. | 0:09:12 | 0:09:16 | |
-John, great to meet you. -And you. -Congratulations. | 0:09:17 | 0:09:21 | |
Tell me why you wanted to buy this house. | 0:09:21 | 0:09:23 | |
Because, as I'm getting towards retirement, | 0:09:23 | 0:09:27 | |
I've stopped doing country estates | 0:09:27 | 0:09:29 | |
and large houses that take a year or two years, | 0:09:29 | 0:09:32 | |
and I'm now doing three or four of these houses a year, | 0:09:32 | 0:09:35 | |
which will be a lot more fun. The men who do the work for me, | 0:09:35 | 0:09:38 | |
I don't employ anybody, but all the subcontractors, | 0:09:38 | 0:09:41 | |
are looking forward to coming in and out | 0:09:41 | 0:09:43 | |
of a house like this in three months. | 0:09:43 | 0:09:44 | |
So, sorry, country estates? What were you doing in country estates? | 0:09:44 | 0:09:48 | |
Buying a country estate, | 0:09:48 | 0:09:50 | |
a lot of country estates had derelict buildings, | 0:09:50 | 0:09:53 | |
-I would do them up and sell them. -Wow! Forgive me, | 0:09:53 | 0:09:56 | |
but quite a few people would go from this to that, | 0:09:56 | 0:09:59 | |
rather than from that to this. | 0:09:59 | 0:10:00 | |
This is exciting because the recession has been | 0:10:00 | 0:10:04 | |
-a really awful time in the country house market. -Has it? | 0:10:04 | 0:10:07 | |
It took me two years to sell the house I was in. | 0:10:07 | 0:10:10 | |
You know, which is a wonderful house. | 0:10:10 | 0:10:12 | |
MUSIC: Country House by Blur | 0:10:12 | 0:10:16 | |
John has decided to change his strategy in the property game, | 0:10:17 | 0:10:21 | |
having sold his portfolio and moved to cheaper, less stressful, | 0:10:21 | 0:10:25 | |
and less time-consuming projects. | 0:10:25 | 0:10:27 | |
He seems pretty adaptable to the economics of the property business. | 0:10:27 | 0:10:32 | |
Starting out converting barns 40 years ago, | 0:10:32 | 0:10:35 | |
he reckons he was one of the first to see their potential. | 0:10:35 | 0:10:38 | |
And the proceeds paid for his medical school tuition. | 0:10:38 | 0:10:42 | |
But, in the end, he decided to doctor property, rather than people. | 0:10:42 | 0:10:46 | |
And here we are. | 0:10:46 | 0:10:47 | |
So, from barns to semis, what did he see in this lot? | 0:10:47 | 0:10:51 | |
Very solidly built. In need of updating. | 0:10:52 | 0:10:56 | |
It's a two-bedroom house, huge bedrooms. | 0:10:56 | 0:10:58 | |
It'll finish up three bedrooms, one with an en-suite bathroom, | 0:10:58 | 0:11:01 | |
so it's going to be two bathrooms, three bedrooms. | 0:11:01 | 0:11:04 | |
There's a conservatory going off the kitchen. | 0:11:04 | 0:11:06 | |
I'm opening up the wall behind me. | 0:11:06 | 0:11:08 | |
So you come in from the front and you'd come into this living room, | 0:11:08 | 0:11:12 | |
you'd turn right and you'd have a wonderful view right through | 0:11:12 | 0:11:15 | |
the conservatory and into the garden. | 0:11:15 | 0:11:18 | |
I try to aim for certain standards. | 0:11:18 | 0:11:20 | |
Because the builder who does a lot of work for me said, | 0:11:20 | 0:11:23 | |
"Why don't you just tart it up and sell it and make a quick 10,000?" | 0:11:23 | 0:11:27 | |
It just so happens, yesterday, nearby, a chap offered me | 0:11:27 | 0:11:31 | |
-110,000 for this house completed. -Wow. -So, a substantial sum of money. | 0:11:31 | 0:11:36 | |
He's offered you that based on what you were planning? | 0:11:36 | 0:11:39 | |
Absolutely, I showed him the plans and he loved it. | 0:11:39 | 0:11:41 | |
So, he's now got first refusal. | 0:11:41 | 0:11:43 | |
I didn't say yes, because I just don't know what the final price... | 0:11:43 | 0:11:46 | |
I'd be delighted to take 110, or even 105. But, anyway... | 0:11:46 | 0:11:52 | |
It's not just to do with the profit. It's the fun of doing them. | 0:11:52 | 0:11:55 | |
John has got fantastic plans for this, for sure, | 0:11:57 | 0:12:00 | |
and I love his enthusiasm and obvious passion for property. | 0:12:00 | 0:12:04 | |
No matter its price. | 0:12:04 | 0:12:06 | |
John is planning to bring country estate specs to this house. | 0:12:06 | 0:12:10 | |
The new conservatory will flow into | 0:12:10 | 0:12:12 | |
the renovated kitchen and living room. | 0:12:12 | 0:12:15 | |
And he'll be adding a utility room by reducing | 0:12:15 | 0:12:18 | |
the size of the downstairs toilet. | 0:12:18 | 0:12:20 | |
Upstairs, he'll reduce the bathroom size to gain a third bedroom | 0:12:21 | 0:12:26 | |
and add an en-suite in another bedroom. | 0:12:26 | 0:12:29 | |
All that in three months. | 0:12:29 | 0:12:31 | |
But he's making a generous saving in the budget. | 0:12:31 | 0:12:34 | |
All of my local suppliers, whom I've been dealing with for years, | 0:12:37 | 0:12:40 | |
are going to supply all the materials at absolute cost. | 0:12:40 | 0:12:43 | |
Which is a wonderful thank you from them. | 0:12:43 | 0:12:46 | |
So, the budget will be between 23 and 25. | 0:12:46 | 0:12:49 | |
It'll be very well finished. So, it'll be an upmarket spec | 0:12:49 | 0:12:54 | |
for a medium market house. | 0:12:54 | 0:12:56 | |
Now, there is always a danger with that that there is going to | 0:12:56 | 0:12:59 | |
be a ceiling price on properties in the area. | 0:12:59 | 0:13:01 | |
If you build it to such high specs, you might not get your money back. | 0:13:01 | 0:13:05 | |
It may be the case, but I've set standards all my life. | 0:13:05 | 0:13:08 | |
I've been told that fact for years. | 0:13:08 | 0:13:10 | |
And so far, we've normally achieved the price that we set out for. | 0:13:10 | 0:13:15 | |
But even if I have less of a profit, that doesn't matter. | 0:13:15 | 0:13:18 | |
I want to finish the house to the best spec | 0:13:18 | 0:13:20 | |
and to the specs that I've been dealing in all my adult life. | 0:13:20 | 0:13:24 | |
Congratulations. Good luck with it. | 0:13:24 | 0:13:26 | |
-Look forward to seeing how you get on. -Thank you very much. | 0:13:26 | 0:13:30 | |
Well, John is certainly a man with a plan and a pretty impressive | 0:13:30 | 0:13:34 | |
one it is too, totally transforming this semidetached. | 0:13:34 | 0:13:39 | |
How will it look? I can't wait to see. | 0:13:39 | 0:13:41 | |
You can find out later in the show. | 0:13:41 | 0:13:44 | |
Willesden Green used to be an area beloved of Aussie and Kiwi | 0:13:47 | 0:13:51 | |
and South African backpackers. | 0:13:51 | 0:13:53 | |
Now, the delis and the cafes are moving in | 0:13:53 | 0:13:55 | |
and attracting a much more professional clientele. | 0:13:55 | 0:13:59 | |
So, this is an area definitely on the up. | 0:13:59 | 0:14:01 | |
People moving into this area will undoubtedly appreciate | 0:14:03 | 0:14:07 | |
the transport links to the capital. | 0:14:07 | 0:14:09 | |
The nearby North Circular Road, the Tube, or even Shanks's pony. | 0:14:09 | 0:14:14 | |
One of the most important rules when buying property in London | 0:14:17 | 0:14:20 | |
is to try and buy within a short walk of the train station. | 0:14:20 | 0:14:24 | |
Now, the property I'm here to see definitely ticks that box, | 0:14:24 | 0:14:28 | |
with just a few minutes' walk from Willesden Green tube. | 0:14:28 | 0:14:31 | |
So, the location really is fantastic. | 0:14:31 | 0:14:34 | |
But what about the property? | 0:14:34 | 0:14:35 | |
Here it is, it's a two-bed flat | 0:14:35 | 0:14:37 | |
up on the second floor of this mid-terraced house. | 0:14:37 | 0:14:40 | |
And it went to auction with a guide price of £325,000 plus. | 0:14:40 | 0:14:45 | |
I'm going in. | 0:14:45 | 0:14:46 | |
MUSIC: Take It To The Top by Kool & The Gang | 0:14:52 | 0:14:56 | |
This communal area presents a bit of an obstacle course. | 0:14:58 | 0:15:02 | |
It's all feeling a little bit tired. A bit like me! | 0:15:02 | 0:15:05 | |
Oh, a couple of flights of stairs later and, well, we reach the flat. | 0:15:06 | 0:15:11 | |
The decor's a little bit basic. | 0:15:11 | 0:15:12 | |
Brown carpets, magnolia walls everywhere. A bit beigey. | 0:15:12 | 0:15:16 | |
But the entrance hall is light, | 0:15:16 | 0:15:17 | |
thanks to that big old window up there. | 0:15:17 | 0:15:20 | |
On this level, you've got a small bathroom through here | 0:15:20 | 0:15:22 | |
and then into the first of two bedrooms. Now, it's a small double. | 0:15:22 | 0:15:26 | |
You've got some sloping ceilings over here | 0:15:26 | 0:15:29 | |
and they do eat into the space a bit, | 0:15:29 | 0:15:31 | |
but everything is in good condition. So, so far, so good. | 0:15:31 | 0:15:34 | |
I actually really like this flat. | 0:15:34 | 0:15:36 | |
Despite the fact it has a downstairs bathroom, | 0:15:36 | 0:15:39 | |
but it is conveniently next-door to bedroom one | 0:15:39 | 0:15:42 | |
with gas central heating. | 0:15:42 | 0:15:44 | |
Slight minus points for the view of the neighbours at the back, | 0:15:44 | 0:15:47 | |
but at least, we're in a bedroom where curtains are | 0:15:47 | 0:15:50 | |
normally closed when it's occupied. | 0:15:50 | 0:15:52 | |
And renovating this room looks like it should be just a superficial job. | 0:15:52 | 0:15:57 | |
MUSIC: The Attic by Paul Weller | 0:15:58 | 0:16:01 | |
Up a few more stairs and there are a few more rooms. | 0:16:05 | 0:16:08 | |
So, you got the kitchen through here, a bedroom, potentially, | 0:16:08 | 0:16:12 | |
through here and through here, well, a bedroom or a lounge. | 0:16:12 | 0:16:15 | |
I actually think a lounge would work so much better. | 0:16:15 | 0:16:19 | |
Although, the room is very eaved. | 0:16:19 | 0:16:21 | |
You can tell you're right up in the loft. | 0:16:21 | 0:16:23 | |
Now, the other side of this wall is a kitchen. | 0:16:23 | 0:16:26 | |
There's a partition wall there. I'd like to see that come down. | 0:16:26 | 0:16:29 | |
And, you know what I'm going to say - open the space up! | 0:16:29 | 0:16:32 | |
Because it is quite cramped in here | 0:16:32 | 0:16:34 | |
and to have the flow of the kitchen | 0:16:34 | 0:16:36 | |
into this room, I think, would work really well. | 0:16:36 | 0:16:38 | |
Don't forget that you have to get | 0:16:38 | 0:16:40 | |
the freeholder's permission to do that, | 0:16:40 | 0:16:42 | |
but then you could have a bedroom, a nice kitchen | 0:16:42 | 0:16:45 | |
through into a great lounge | 0:16:45 | 0:16:46 | |
where you could have an eating area by the window. | 0:16:46 | 0:16:48 | |
That would really work well. | 0:16:48 | 0:16:50 | |
So, I mentioned the freeholder. Let's talk about that lease. | 0:16:50 | 0:16:54 | |
The good news is, there's 125 years left on that. So, no worries. | 0:16:54 | 0:16:59 | |
But does this flat offer a good opportunity? | 0:16:59 | 0:17:01 | |
What does the local estate agent think its pros and cons are? | 0:17:01 | 0:17:04 | |
Firstly, the cons. | 0:17:04 | 0:17:06 | |
The external parts could do with some work, the main facade. | 0:17:06 | 0:17:10 | |
Internally, I think it's a good flat. It has two good-sized bedrooms, | 0:17:10 | 0:17:14 | |
a fair sized reception. So I think it would do well. | 0:17:14 | 0:17:17 | |
Now, as I've said, this area | 0:17:17 | 0:17:19 | |
is moving away from its backpacker past. | 0:17:19 | 0:17:22 | |
What kind of rentals could a buyer be hoping to attract? | 0:17:22 | 0:17:25 | |
This is a good rental area. | 0:17:25 | 0:17:27 | |
Round the corner from Willesden Green Station. | 0:17:27 | 0:17:29 | |
For that reason, you'd have young professionals, or older professionals. | 0:17:29 | 0:17:33 | |
City workers wanting to live in this location, in particular. | 0:17:33 | 0:17:37 | |
So, what rent could a commuting professional be expecting to pay | 0:17:37 | 0:17:40 | |
for a refurbished flat like this? | 0:17:40 | 0:17:43 | |
I think you're looking in the region of £1,500-£1,600 per calendar month. | 0:17:43 | 0:17:46 | |
Given the guide price is £325,000, | 0:17:46 | 0:17:50 | |
what would it list for on the open market? | 0:17:50 | 0:17:52 | |
I would say that this property is worth £450,000 at a maximum, | 0:17:52 | 0:17:56 | |
once refurbished. | 0:17:56 | 0:17:58 | |
Which leaves £125,000 - full refurbishment, profit | 0:17:58 | 0:18:02 | |
and the usual taxes and expenses. | 0:18:02 | 0:18:05 | |
To achieve the figure of £450,000, | 0:18:05 | 0:18:08 | |
I'd say you'd need to do a pretty high-end job. | 0:18:08 | 0:18:11 | |
Pay attention to the colour scheme and small details, | 0:18:11 | 0:18:13 | |
like what doors you have, skirtings, covings if you have them as well. | 0:18:13 | 0:18:17 | |
Even with a high-spec kitchen and chrome-plated taps, | 0:18:17 | 0:18:20 | |
there must be room for some profit. | 0:18:20 | 0:18:23 | |
This two-bed flat needs a bit of a cosmetic refurb to get it | 0:18:23 | 0:18:26 | |
looking its best. A new kitchen? Yep. A new bathroom? Yep. | 0:18:26 | 0:18:31 | |
And, overall, redecoration will transform the place. | 0:18:31 | 0:18:35 | |
So, who was willing to bid for this Willesden Green property? | 0:18:35 | 0:18:39 | |
Let's head to auction and find out. | 0:18:39 | 0:18:41 | |
Second-floor flat, two bedrooms, in the same ownership for 27 years. | 0:18:41 | 0:18:46 | |
Start me at 300, please. Opening bid of 300. | 0:18:46 | 0:18:49 | |
It's all gone very quiet all of a sudden. 300,000? | 0:18:49 | 0:18:52 | |
I say, 300 there on my left. | 0:18:52 | 0:18:54 | |
Thank you. Lady's bid. 300. On the aisle. | 0:18:54 | 0:18:56 | |
300 here. Somebody else? 305? On the aisle? | 0:18:56 | 0:19:01 | |
Oh! Standing. I was looking for somebody sitting down. | 0:19:01 | 0:19:04 | |
Thank you very much. 305, may I say? 305. 305. And ten? | 0:19:04 | 0:19:08 | |
310. And 15? 15. And 20? And 20. | 0:19:08 | 0:19:13 | |
And 25? And 25. | 0:19:13 | 0:19:16 | |
And 30? No. 325 then. | 0:19:16 | 0:19:22 | |
330 anywhere else? First time at 325. | 0:19:22 | 0:19:24 | |
Second time at 325. | 0:19:24 | 0:19:27 | |
Lady's bid, standing in the back. | 0:19:27 | 0:19:28 | |
For the last time at £325,000. All done? | 0:19:28 | 0:19:32 | |
Sold. Well done, madam. 325. | 0:19:32 | 0:19:36 | |
A successful bid of £325,000, bang on the guide price, | 0:19:36 | 0:19:40 | |
came from Kelly at the auction with her dad David. | 0:19:40 | 0:19:43 | |
It's not Kelly's first time on Homes Under The Hammer. | 0:19:43 | 0:19:46 | |
We met way back in 2007, | 0:19:46 | 0:19:49 | |
when she bought a garden flat, also in Willesden. | 0:19:49 | 0:19:52 | |
Then she was looking for an addition to her daytime job | 0:19:52 | 0:19:55 | |
as an events manager in the music industry. | 0:19:55 | 0:19:59 | |
-So how long have you been doing this for? -Eight months. | 0:19:59 | 0:20:02 | |
And is this your first property you've bought? | 0:20:02 | 0:20:05 | |
No, I... It's the first one in auction. I've bought and sold one, | 0:20:05 | 0:20:09 | |
and one is on the market, hopefully, waiting for it to sell, | 0:20:09 | 0:20:12 | |
and I'm doing two other ones up as well. | 0:20:12 | 0:20:16 | |
To have turned around five properties in just eight months, | 0:20:16 | 0:20:20 | |
I'd call Kelly a go-getter, and she sold the garden flat | 0:20:20 | 0:20:24 | |
and made a profit without doing any refurbishment. | 0:20:24 | 0:20:26 | |
Now, Kelly's in business with sister Julie, | 0:20:26 | 0:20:29 | |
and I met them at their new flat to find out their plans. | 0:20:29 | 0:20:32 | |
MUSIC: Hey, Soul Sister by Train | 0:20:32 | 0:20:34 | |
# Hey, soul sister | 0:20:34 | 0:20:35 | |
# Ain't that Mr Mister on the radio, stereo? | 0:20:35 | 0:20:40 | |
# The way you move ain't fair, you know... # | 0:20:40 | 0:20:43 | |
Kelly and Julie, congratulations. | 0:20:43 | 0:20:45 | |
Now, Kelly, you've been buying and selling | 0:20:45 | 0:20:47 | |
since I met you seven years ago. | 0:20:47 | 0:20:49 | |
We have, we've bought and sold, we've bought and kept, which is nice, | 0:20:49 | 0:20:53 | |
and now we're onto this one. | 0:20:53 | 0:20:55 | |
Now, you were quite a busy young lady, | 0:20:55 | 0:20:57 | |
-I remember you were in the music industry. -I was. | 0:20:57 | 0:20:59 | |
Are you still doing that? | 0:20:59 | 0:21:01 | |
-I'm a freelance event manager for music and sport events. -Yeah. | 0:21:01 | 0:21:04 | |
So, yes, I'm still in music and doing a bit of sport events as well, | 0:21:04 | 0:21:09 | |
freelancing, so makes sure we have time | 0:21:09 | 0:21:11 | |
for property...at the same time. | 0:21:11 | 0:21:13 | |
So, Julie, how did she rope you into this? Come on, tell me. | 0:21:13 | 0:21:16 | |
We just did one project together. | 0:21:16 | 0:21:18 | |
I worked as a set designer originally, and then | 0:21:18 | 0:21:20 | |
I sort of ended up doing interior design, and then, on a project, | 0:21:20 | 0:21:24 | |
we just decided it made sense for me to do the interior for Kelly. | 0:21:24 | 0:21:27 | |
We actually make a really good combination. | 0:21:27 | 0:21:29 | |
We've realised that we can never live together, | 0:21:29 | 0:21:32 | |
but we can work together, so I'm more of the project manager, | 0:21:32 | 0:21:36 | |
and do that side of things, and Julie comes in on the design. And we... | 0:21:36 | 0:21:42 | |
Yeah, we get on very well, working together. It sort of seems to... | 0:21:42 | 0:21:45 | |
-Because you don't live together? -Yes. -Yeah, exactly. | 0:21:45 | 0:21:47 | |
-Who's the older sister? -I'm the older one. -Older sister. | 0:21:47 | 0:21:50 | |
-Yeah. -And who is the one that's a little bit more in control, | 0:21:50 | 0:21:53 | |
and will be in charge of what is going on and what's happening? | 0:21:53 | 0:21:57 | |
-Erm, it... -It depends on what we're talking about. -Yeah. | 0:21:57 | 0:22:01 | |
I'm good with budgets and keeping the costs down, | 0:22:01 | 0:22:05 | |
and that sort of thing, and Julie is more... | 0:22:05 | 0:22:08 | |
-She'll be more sort of strict on design and how it looks. -Yeah. | 0:22:08 | 0:22:12 | |
The sisters have been working together for the last two years, | 0:22:12 | 0:22:15 | |
after they decided their skills and experience | 0:22:15 | 0:22:18 | |
made a great working partnership in property. | 0:22:18 | 0:22:20 | |
As they both have jobs that are freelance, and by nature, | 0:22:20 | 0:22:23 | |
a bit sporadic, property makes a great fit for both of them. | 0:22:23 | 0:22:27 | |
So what's the plan? | 0:22:27 | 0:22:28 | |
We're going to refurbish the whole flat, so we're going to put | 0:22:30 | 0:22:34 | |
a new kitchen in, new bathroom, and we're going to create... | 0:22:34 | 0:22:38 | |
a hole between the lounge and the kitchen, so there's a hatch. | 0:22:38 | 0:22:42 | |
So there's a breakfast bar there. New, you know, wooden flooring, | 0:22:42 | 0:22:46 | |
so just give the whole thing a bit of a lift, | 0:22:46 | 0:22:49 | |
and then we would like to rent it out afterwards. | 0:22:49 | 0:22:51 | |
So what about the kitchen? Now, you mentioned a hatch. | 0:22:51 | 0:22:54 | |
I was just a bit concerned that still might cut it off a little bit. | 0:22:54 | 0:22:57 | |
I think we wanted something just a bit different, | 0:22:57 | 0:22:59 | |
and that way, you get the best of both worlds, so it's, you know, | 0:22:59 | 0:23:03 | |
it's adjoining, you can talk to people in both rooms. | 0:23:03 | 0:23:06 | |
It gives that light. | 0:23:06 | 0:23:07 | |
The lounge will get the light from the kitchen, but at the same time, | 0:23:07 | 0:23:10 | |
it also creates a breakfast bar, and we think that's quite a nice touch. | 0:23:10 | 0:23:14 | |
Is there anything that you're going to put into this | 0:23:14 | 0:23:16 | |
property that will sort of, like, make it stand apart? | 0:23:16 | 0:23:18 | |
Yeah, I mean, it's, we always try to strike a balance | 0:23:18 | 0:23:21 | |
between making sure that it's going to be | 0:23:21 | 0:23:23 | |
to most people's taste, but at the same time, | 0:23:23 | 0:23:26 | |
not going for that | 0:23:26 | 0:23:27 | |
-generic developer's, boring sort of look. -New, new, new. | 0:23:27 | 0:23:31 | |
-Magnolia, Magnolia. -Yeah, which just feels a bit uninspired. | 0:23:31 | 0:23:34 | |
Exactly, so it's just striking that balance with a few little... | 0:23:34 | 0:23:38 | |
We're doing a banquette in the living room, | 0:23:38 | 0:23:40 | |
and maybe having an interesting fabric on that. | 0:23:40 | 0:23:42 | |
So you can sit on it and you can also use it as storage, | 0:23:42 | 0:23:45 | |
-I'm guessing. -Yeah, underneath. -Yeah, exactly. | 0:23:45 | 0:23:47 | |
We'll have probably lift-up seats | 0:23:47 | 0:23:48 | |
so that you can have storage underneath. | 0:23:48 | 0:23:50 | |
So just little touches like that, which make it a bit different. | 0:23:50 | 0:23:54 | |
We like to be a bit quirky. | 0:23:54 | 0:23:56 | |
That's kind of maybe our style, | 0:23:56 | 0:23:58 | |
but like Julie was saying, we don't like to go overboard with that, | 0:23:58 | 0:24:01 | |
because it's not going to help sell and rent out. | 0:24:01 | 0:24:04 | |
What about the bathroom? | 0:24:04 | 0:24:05 | |
Oh, so, the bathroom, we found lovely, old, | 0:24:05 | 0:24:09 | |
like, old Victorian-style tiles. | 0:24:09 | 0:24:11 | |
We've decided to go for brass taps and shower. | 0:24:11 | 0:24:15 | |
I think that'll be... It'll give it a good look. | 0:24:15 | 0:24:18 | |
We did find this amazing flamingo, sort of, artwork | 0:24:18 | 0:24:24 | |
for by the bath, but we're just working out budgets... | 0:24:24 | 0:24:26 | |
if it works with our budget or not. It's quite expensive. | 0:24:26 | 0:24:29 | |
And also, will that be to everybody's taste? | 0:24:29 | 0:24:31 | |
-That's what you've got to remember. -Maybe not. -Yeah. | 0:24:31 | 0:24:33 | |
Maybe you two are going to love that, but somebody else | 0:24:33 | 0:24:36 | |
that's buying the property or renting it might not like that. | 0:24:36 | 0:24:38 | |
I know. White tiles sound boring to us, but it will... | 0:24:38 | 0:24:42 | |
It will look lovely. | 0:24:42 | 0:24:44 | |
The girls have a materials budget of £18,000, | 0:24:44 | 0:24:47 | |
and their builder has quoted a further £17,000 for labour | 0:24:47 | 0:24:51 | |
and expects to finish in a month's time. | 0:24:51 | 0:24:54 | |
Girls, I'm really excited for you both. | 0:24:54 | 0:24:55 | |
Good luck with this project and I can't wait to see the magic touch. | 0:24:55 | 0:24:58 | |
-Thank you. -Thank you. Thanks so much. -Congratulations. -Thanks. | 0:24:58 | 0:25:01 | |
It's been a good few years since we last saw Kelly on the show, | 0:25:03 | 0:25:05 | |
and she is still buying and doing up property. | 0:25:05 | 0:25:08 | |
This time round, though, she has sister Julie lending a helping hand, | 0:25:08 | 0:25:12 | |
so will those sisters be able to transform this flat | 0:25:12 | 0:25:16 | |
from shabby to chic in a month? | 0:25:16 | 0:25:19 | |
You can find out how Kelly and Julie, the sisters, | 0:25:19 | 0:25:21 | |
get on, later on in the programme. | 0:25:21 | 0:25:23 | |
Coming up, the family theme continues, | 0:25:25 | 0:25:27 | |
as two cousins come together as duo developers in Dudley. | 0:25:27 | 0:25:30 | |
He's dragged you in, hasn't he? | 0:25:30 | 0:25:32 | |
He's dragged you away from your normal job. | 0:25:32 | 0:25:33 | |
I'm loving it, to be honest. | 0:25:33 | 0:25:36 | |
And in Willesden Green, London, | 0:25:36 | 0:25:38 | |
are sisters Kelly and Julie still enjoying working together? | 0:25:38 | 0:25:41 | |
It's fun, working with my sister. | 0:25:41 | 0:25:43 | |
We're heading back now to Stoke-on-Trent, where I looked at | 0:25:49 | 0:25:53 | |
a brick-built, two-bedroom semi, bought at auction for £53,000 | 0:25:53 | 0:25:57 | |
by John, who turned out to be | 0:25:57 | 0:25:59 | |
more at home on a different kind of estate. | 0:25:59 | 0:26:03 | |
Country estates? What were you doing in country estates? | 0:26:03 | 0:26:06 | |
Buying a country estate, which... | 0:26:06 | 0:26:07 | |
A lot of country estates had derelict buildings. | 0:26:07 | 0:26:10 | |
I would do them up and sell them. | 0:26:10 | 0:26:12 | |
Wow. Forgive me, but quite a few people would go from this to that, | 0:26:12 | 0:26:16 | |
-rather than from that to this. -This is exciting, | 0:26:16 | 0:26:19 | |
because the recession has been a really awful time. | 0:26:19 | 0:26:22 | |
A property developer for over 40 years, | 0:26:22 | 0:26:24 | |
John sold most of his portfolio to move to smaller properties | 0:26:24 | 0:26:28 | |
like these, so what were his plans here? | 0:26:28 | 0:26:31 | |
It'll finish up, three bedrooms, one with an en-suite bathroom, | 0:26:31 | 0:26:35 | |
so there's going to be two bathrooms, three bedrooms. | 0:26:35 | 0:26:37 | |
There's a conservatory going off the kitchen. | 0:26:37 | 0:26:39 | |
I'm opening up the wall behind me, so when you come in from the front, | 0:26:39 | 0:26:43 | |
-you have a wonderful view right through. -Wow. | 0:26:43 | 0:26:45 | |
Now, there is always a danger with that, that you're sort of... | 0:26:45 | 0:26:48 | |
-There is going to be a ceiling price on properties in the area. -Yeah. | 0:26:48 | 0:26:51 | |
And if you build it to such high spec, | 0:26:51 | 0:26:54 | |
-you might not get your money back. -It may be the case. | 0:26:54 | 0:26:56 | |
It's not just to do with the profit. It's the fun of doing them. | 0:26:56 | 0:27:00 | |
Profit or fun, three-and-a-half months later, | 0:27:00 | 0:27:03 | |
we're back to find out | 0:27:03 | 0:27:04 | |
if John's changes will help him to resell. | 0:27:04 | 0:27:07 | |
Let's start with the kitchen wall. | 0:27:07 | 0:27:09 | |
MUSIC: I Wouldn't Normally Do This Kind Of Thing by The Pet Shop Boys | 0:27:09 | 0:27:13 | |
A much brighter arrangement. | 0:27:15 | 0:27:17 | |
Now, what about those dull old kitchen units? | 0:27:17 | 0:27:21 | |
# Ask me why | 0:27:26 | 0:27:29 | |
# I'll say it's most unusual | 0:27:29 | 0:27:33 | |
# How can I even try to explain? | 0:27:33 | 0:27:39 | |
# Why today, I feel like dancing | 0:27:39 | 0:27:43 | |
# And singing like lovers sing | 0:27:43 | 0:27:46 | |
# When I wouldn't normally do this kind of thing... # | 0:27:46 | 0:27:52 | |
But the biggest change is this permanent conservatory. | 0:27:52 | 0:27:56 | |
The back door and downstairs loo area has been | 0:27:56 | 0:27:58 | |
rearranged into a small utility, and shorter but brighter downstairs loo. | 0:27:58 | 0:28:04 | |
# Wouldn't normally do | 0:28:06 | 0:28:09 | |
# Wouldn't normally do this kind of | 0:28:09 | 0:28:15 | |
# This kind of thing... # | 0:28:15 | 0:28:20 | |
Now, with daylight coming from both ends, the lounge is much brighter. | 0:28:20 | 0:28:24 | |
The once huge bathroom is now smaller, | 0:28:26 | 0:28:28 | |
to allow reconfiguration of the upstairs. | 0:28:28 | 0:28:31 | |
# Wouldn't normally do this kind of thing... # | 0:28:31 | 0:28:35 | |
There are now three bedrooms and all of them | 0:28:35 | 0:28:38 | |
have built-in wardrobe space. | 0:28:38 | 0:28:41 | |
Much is unrecognisable, | 0:28:41 | 0:28:43 | |
but the master bedroom once looked like this. | 0:28:43 | 0:28:45 | |
# This kind of thing... # | 0:28:45 | 0:28:47 | |
Now look at it! | 0:28:47 | 0:28:49 | |
It has the most wardrobe space, and en-suite facilities too. | 0:28:49 | 0:28:53 | |
So, how has John found the experience, | 0:28:57 | 0:29:00 | |
working on a much smaller urban house than those he's more used to? | 0:29:00 | 0:29:04 | |
# This kind of thing. # | 0:29:05 | 0:29:08 | |
This is a mini country house, with its en-suite, | 0:29:08 | 0:29:10 | |
and its conservatory, and its fitted kitchen | 0:29:10 | 0:29:13 | |
and a utility, downstairs cloakroom, landscaped gardens. | 0:29:13 | 0:29:16 | |
It's... It's been a joy to do. | 0:29:16 | 0:29:18 | |
How did John turn it from a two-bedroom to a three-bedroom? | 0:29:18 | 0:29:23 | |
A quarter of the bathroom was unusable | 0:29:23 | 0:29:25 | |
because of all the unnecessary boxing | 0:29:25 | 0:29:27 | |
in the days when they had massive water tanks and cylinders. | 0:29:27 | 0:29:30 | |
And so, by stripping that out, it made a good third bedroom. | 0:29:30 | 0:29:33 | |
The main bedroom was so huge that I was able to make it | 0:29:33 | 0:29:37 | |
still into a double bedroom but with fitted wardrobes and so it was very | 0:29:37 | 0:29:41 | |
easy to make it into a three-bedroomed house, | 0:29:41 | 0:29:43 | |
which makes a huge difference. | 0:29:43 | 0:29:45 | |
John has a trusted team of contractors, so what was his role? | 0:29:45 | 0:29:49 | |
I did all the organising of materials, I wouldn't let | 0:29:49 | 0:29:51 | |
anybody go off-site to go and pick things up, that was my job. | 0:29:51 | 0:29:54 | |
And just...and monitor it. | 0:29:54 | 0:29:56 | |
And, you know, I had a programme of work, and although they never | 0:29:56 | 0:30:00 | |
actually work properly, it meant that we've got to this stage. | 0:30:00 | 0:30:04 | |
Three-and-a-half months, I think is quite acceptable for | 0:30:04 | 0:30:06 | |
the total stripping out of the house, redesigning it in total, | 0:30:06 | 0:30:09 | |
taking all the plaster off and going back to bare walls. | 0:30:09 | 0:30:12 | |
It's been a big exercise, really, but a very enjoyable one. | 0:30:12 | 0:30:17 | |
Ah, yes. That raises the fun versus profit argument. | 0:30:17 | 0:30:21 | |
John initially budgeted £25,000 for the work, | 0:30:21 | 0:30:24 | |
but has his quest for high spec taken its toll on that figure? | 0:30:24 | 0:30:28 | |
I've actually spent 27,000, to the nearest hundred pounds, | 0:30:30 | 0:30:34 | |
and I... For what we've done, I think that's an amazing budget. | 0:30:34 | 0:30:37 | |
We called in two local property experts to find out | 0:30:39 | 0:30:42 | |
if it's all been worthwhile. | 0:30:42 | 0:30:44 | |
First up, the one who saw the property before renovation began. | 0:30:44 | 0:30:47 | |
I think he's made some fantastic changes to the property | 0:30:47 | 0:30:50 | |
since I last saw it. | 0:30:50 | 0:30:51 | |
My favourite part that he's added is the extension to the rear. | 0:30:51 | 0:30:54 | |
It opens up the property and it's very light and bright throughout. | 0:30:54 | 0:30:57 | |
The property has been finished above standard for the area. | 0:30:57 | 0:31:01 | |
It looks like it's been re-plastered, | 0:31:01 | 0:31:03 | |
new central heating, and decorated neutral all through. | 0:31:03 | 0:31:06 | |
It really will appeal to quite a few different types of people. | 0:31:06 | 0:31:10 | |
Will going above and beyond what is generally expected | 0:31:10 | 0:31:13 | |
in this area adversely affect John's position? | 0:31:13 | 0:31:17 | |
Let's get the rental values and see | 0:31:17 | 0:31:19 | |
if we can sway John away from his intention to sell. | 0:31:19 | 0:31:22 | |
For rental, he could ask for £525 per calendar month. | 0:31:22 | 0:31:26 | |
If this property was to be placed on the rental market, | 0:31:26 | 0:31:29 | |
I would look somewhere in the region of £495 per calendar month. | 0:31:29 | 0:31:32 | |
Taking the average, | 0:31:32 | 0:31:33 | |
that would equate to an 8% yield on John's £80,000 investment. | 0:31:33 | 0:31:37 | |
Tempting? | 0:31:37 | 0:31:40 | |
I'm going to sell this one. | 0:31:40 | 0:31:41 | |
Basically, after eight years of really difficult times in | 0:31:41 | 0:31:46 | |
the property market, I'm going to build up | 0:31:46 | 0:31:49 | |
my capital base for my retirement. | 0:31:49 | 0:31:51 | |
Fair enough, John. Let's see how much the agents feel that | 0:31:51 | 0:31:54 | |
your capital base could swell by. | 0:31:54 | 0:31:56 | |
I would value this property at £110,000. | 0:31:56 | 0:32:00 | |
I'd recommend an asking price | 0:32:00 | 0:32:02 | |
somewhere in the region of £100-£105,000. | 0:32:02 | 0:32:04 | |
That's about right for this area, but what amazes me, | 0:32:04 | 0:32:07 | |
and especially people who might be watching this in London and | 0:32:07 | 0:32:10 | |
the major cities - | 0:32:10 | 0:32:11 | |
three bedrooms, two bathrooms, fitted kitchens and so on - | 0:32:11 | 0:32:14 | |
they just will not believe that you can get a house of this calibre, | 0:32:14 | 0:32:17 | |
this quality, for that money. | 0:32:17 | 0:32:19 | |
But, yes, I accept that that is the value around here. | 0:32:19 | 0:32:23 | |
In fact, after filming, | 0:32:23 | 0:32:25 | |
John actually sold the property for £120,000, | 0:32:25 | 0:32:29 | |
adding to his capital base to the tune of £40,000, | 0:32:29 | 0:32:33 | |
minus the usual taxes and expenses. | 0:32:33 | 0:32:35 | |
And as to his future investments... | 0:32:35 | 0:32:37 | |
I love auctions. | 0:32:37 | 0:32:38 | |
You know, it's a wonderful way to buy properties, and what I'm | 0:32:38 | 0:32:42 | |
always looking out for is something that's derelict or semi-derelict. | 0:32:42 | 0:32:45 | |
That's my ideal purchase. | 0:32:45 | 0:32:47 | |
I get the feeling that now goes for urban properties | 0:32:47 | 0:32:49 | |
as well as the ones in the country. | 0:32:49 | 0:32:51 | |
There's no more arresting sight than the West Midlands town of Dudley | 0:33:01 | 0:33:05 | |
bathed in sunshine. | 0:33:05 | 0:33:07 | |
Dudley Castle sits over the town as a reminder of more turbulent times, | 0:33:07 | 0:33:11 | |
but the town is fighting a modern-day battle against economic decline, | 0:33:11 | 0:33:16 | |
but the good news is that a major redevelopment is planned | 0:33:16 | 0:33:20 | |
including a brand-new £7 million market. | 0:33:20 | 0:33:23 | |
The property I'm here to see is just on the outskirts of Dudley | 0:33:32 | 0:33:36 | |
and I'm pretty sure Lenny Henry came from round these parts. | 0:33:36 | 0:33:39 | |
It is on a noisy, busy main road, | 0:33:39 | 0:33:42 | |
and here it is. It's a two-bed, mid-terrace house | 0:33:42 | 0:33:45 | |
with a guide price of £58-62,000. Let's take a look. | 0:33:45 | 0:33:50 | |
Despite the traffic, this is quite an attractive property | 0:33:52 | 0:33:55 | |
with some lovely terracotta details on the front. | 0:33:55 | 0:33:58 | |
Nice and bright. I do like that in a hallway. | 0:34:01 | 0:34:04 | |
Lovely high ceilings as well, so a nice feeling of space. | 0:34:04 | 0:34:08 | |
First reception room is here, | 0:34:08 | 0:34:11 | |
which is an OK size. | 0:34:11 | 0:34:12 | |
It has got double glazed windows as well, | 0:34:12 | 0:34:15 | |
but you can still hear that traffic slightly. | 0:34:15 | 0:34:17 | |
Old-fashioned fireplace. | 0:34:17 | 0:34:19 | |
Again, ceilings are lovely. | 0:34:19 | 0:34:21 | |
Has got a feeling of late '80s, early '90s. | 0:34:21 | 0:34:24 | |
Let's have an explore. | 0:34:24 | 0:34:25 | |
MUSIC: Acceptable in the 80's by Calvin Harris | 0:34:25 | 0:34:28 | |
And, although the house is Victorian, I do mean 1980s. | 0:34:34 | 0:34:39 | |
The decor isn't that old. | 0:34:39 | 0:34:42 | |
To the back of the house, there's a second reception room. | 0:34:42 | 0:34:44 | |
Again, it could do with some redecoration | 0:34:44 | 0:34:47 | |
but I like those French doors that lead out to the back yard. | 0:34:47 | 0:34:50 | |
Through into the kitchen, which is an OK size. | 0:34:52 | 0:34:54 | |
It's in reasonable condition as well, so decent in here. | 0:34:54 | 0:34:58 | |
Through into a wet room, which is quite typical, | 0:34:58 | 0:35:02 | |
to have a downstairs bathroom, as such, in this era of house. | 0:35:02 | 0:35:06 | |
Now, you could actually put a bath in here and a separate shower | 0:35:06 | 0:35:09 | |
but not everybody likes a downstairs bathroom. | 0:35:09 | 0:35:12 | |
Let's see what we can find upstairs. | 0:35:12 | 0:35:14 | |
Upstairs, there are two good-sized bedrooms, | 0:35:23 | 0:35:26 | |
one to the front of the house with two windows letting in lots of light, | 0:35:26 | 0:35:30 | |
and one in the middle. | 0:35:30 | 0:35:32 | |
But, right at the back, there's something of a surprise. | 0:35:32 | 0:35:36 | |
So, down this very long corridor | 0:35:38 | 0:35:41 | |
and you find another bathroom upstairs, which I'm pleased to say, | 0:35:41 | 0:35:44 | |
but it gives you two bathrooms for a two-bedroom house. | 0:35:44 | 0:35:47 | |
Decisions to be made. | 0:35:47 | 0:35:49 | |
Do you change it into a bedroom? Have the bathroom downstairs? Not for me. | 0:35:49 | 0:35:53 | |
I always like to have my bathroom upstairs, next to the bedrooms. | 0:35:53 | 0:35:57 | |
MUSIC: Should I Stay Or Should I Go by The Clash | 0:35:57 | 0:35:59 | |
If you think purely in business terms, | 0:36:02 | 0:36:04 | |
then converting the upstairs bathroom into a third bedroom | 0:36:04 | 0:36:07 | |
makes a lot of sense. | 0:36:07 | 0:36:09 | |
Higher rental and higher sales, | 0:36:09 | 0:36:11 | |
but, if you are buying this for your home, | 0:36:11 | 0:36:14 | |
would you be tempted to keep it upstairs? | 0:36:14 | 0:36:17 | |
Should it stay or should it go? | 0:36:17 | 0:36:19 | |
Let's get some facts and figures from a local property expert | 0:36:21 | 0:36:25 | |
and see what he thinks is the best option. | 0:36:25 | 0:36:27 | |
Swings and roundabouts. | 0:36:34 | 0:36:35 | |
What you lose with one hand, you gain on the other. | 0:36:35 | 0:36:37 | |
Overall, my preference would be to have the third bedroom upstairs | 0:36:37 | 0:36:41 | |
as opposed to a bathroom upstairs. | 0:36:41 | 0:36:44 | |
You'll have more people interested in having three bedrooms than two. | 0:36:44 | 0:36:48 | |
And is there any other refurbishment work he'd recommend? | 0:36:50 | 0:36:54 | |
I'd be looking to replace all the window units to the rear | 0:36:54 | 0:36:57 | |
to double-glazed units. | 0:36:57 | 0:36:58 | |
Possibly replace the front door | 0:36:58 | 0:37:00 | |
and, obviously, a general refurbishment | 0:37:00 | 0:37:03 | |
in terms of painting and carpets. | 0:37:03 | 0:37:05 | |
So what difference would having that third bedroom | 0:37:07 | 0:37:10 | |
make in terms of rental income? | 0:37:10 | 0:37:12 | |
As a two-bed, I'd look to market this property | 0:37:12 | 0:37:15 | |
at around £475-495 per calendar month. | 0:37:15 | 0:37:18 | |
As a three-bed, It would be slightly higher at £525 per calendar month. | 0:37:18 | 0:37:23 | |
And the sales values? | 0:37:24 | 0:37:27 | |
Sales, as a two-bed, | 0:37:27 | 0:37:28 | |
I'd probably be looking to put this on the market around £85,000. | 0:37:28 | 0:37:31 | |
As a three-bed, again, slightly higher at £95,000. | 0:37:31 | 0:37:36 | |
This is a pretty traditional two-bed terrace. | 0:37:37 | 0:37:40 | |
It does need a bit of work doing to it but you do get a lot of space. | 0:37:40 | 0:37:43 | |
If you get it for anywhere near the guide price, | 0:37:43 | 0:37:45 | |
you've got yourself a bit of a steal. | 0:37:45 | 0:37:47 | |
Let's see who agreed when it went to auction. | 0:37:47 | 0:37:49 | |
Two-bedroom, mid-terrace freehold house. | 0:37:49 | 0:37:53 | |
Start me, if you will. | 0:37:53 | 0:37:55 | |
70,000 anywhere? | 0:37:55 | 0:37:58 | |
This lot came up at the end of a busy day and fatigue had obviously set in | 0:37:58 | 0:38:03 | |
as nobody in the room was willing to raise their hand. | 0:38:03 | 0:38:05 | |
£60,000. | 0:38:05 | 0:38:07 | |
The auctioneer dropped the opening price by £20,000, | 0:38:07 | 0:38:11 | |
and we rejoin with the asking price at 50 grand. | 0:38:11 | 0:38:14 | |
At 50,000 anywhere? | 0:38:14 | 0:38:17 | |
Start me if you will. What a buy this will be, sir. Thank you. | 0:38:17 | 0:38:21 | |
At 50,000 I'm bid. Is it 60 now? | 0:38:21 | 0:38:24 | |
At 50,000. Is it 60? 60, sir? | 0:38:24 | 0:38:27 | |
55, thank you. At 55. | 0:38:27 | 0:38:29 | |
At 55, I'm bid. | 0:38:29 | 0:38:31 | |
At 55,000 then, are we all done? | 0:38:31 | 0:38:35 | |
Sir, do you want one? Do you want 56? | 0:38:35 | 0:38:37 | |
56. Thank you, sir. | 0:38:37 | 0:38:38 | |
57. 58, sir? | 0:38:38 | 0:38:41 | |
At 58. Thank you, sir. At 58. At 58. And 59? | 0:38:41 | 0:38:45 | |
It's still a fantastic buy at 59, sir. | 0:38:45 | 0:38:48 | |
Are you sure? | 0:38:48 | 0:38:50 | |
59. 59. | 0:38:50 | 0:38:52 | |
60, sir? No? | 0:38:52 | 0:38:54 | |
At £59,000 on my left. | 0:38:54 | 0:38:58 | |
At £59,000 for the first time. | 0:38:58 | 0:39:02 | |
£59,000 for the second time. | 0:39:02 | 0:39:05 | |
Third and last time. | 0:39:05 | 0:39:08 | |
That's yours, sir. You came in with the one bid which was enough. | 0:39:08 | 0:39:12 | |
That final bid of £59,000 was made by local property developer Jawad. | 0:39:14 | 0:39:19 | |
I met Jawad back at the property along with his cousin Zahid, | 0:39:19 | 0:39:23 | |
who runs a construction company, to hear what their plans were. | 0:39:23 | 0:39:26 | |
-Zahid, nice to meet you. -Likewise. | 0:39:30 | 0:39:32 | |
Jawad, nice to meet you. Congratulations. | 0:39:32 | 0:39:34 | |
-Thank you. -Let's start at the auction. | 0:39:34 | 0:39:36 | |
How was it? What was it like? | 0:39:36 | 0:39:37 | |
I wasn't expecting to start the bid at this price. | 0:39:37 | 0:39:41 | |
I was just relaxed and sit back, | 0:39:41 | 0:39:43 | |
until he just stopped at 59. I just waved my hand and that's it. | 0:39:43 | 0:39:46 | |
And did you get it at the price you wanted it? Were you happy? | 0:39:46 | 0:39:49 | |
Yes, I'm very pleased with it, to be honest, | 0:39:49 | 0:39:51 | |
because I got it, I think, 6K cheaper | 0:39:51 | 0:39:54 | |
than what our budget price was, so... | 0:39:54 | 0:39:56 | |
Do you take different roles? | 0:39:56 | 0:39:58 | |
Does Jawad take one role and you take another role or do you mix it up? | 0:39:58 | 0:40:01 | |
Well, Jawad does all the searching, running round, | 0:40:01 | 0:40:04 | |
looking for the properties. I go down and view them | 0:40:04 | 0:40:07 | |
and then I leave him to it. | 0:40:07 | 0:40:09 | |
So, you do all the work, really, Jawad. That's what I'm getting. | 0:40:09 | 0:40:11 | |
Initially! Initially, but, then, once... If we do get the property, | 0:40:11 | 0:40:15 | |
then I'll do all the building works, organise all the labour, | 0:40:15 | 0:40:21 | |
plant, materials, whatever's required. | 0:40:21 | 0:40:23 | |
Zahid, tell me a bit about yourself before you got, you know, | 0:40:23 | 0:40:25 | |
right into the property world. | 0:40:25 | 0:40:27 | |
Well, I'm a civil engineer by profession. | 0:40:27 | 0:40:30 | |
I left the construction industry about four years ago | 0:40:30 | 0:40:33 | |
to set up my own construction company. | 0:40:33 | 0:40:35 | |
Been doing properties and renovating them | 0:40:35 | 0:40:40 | |
for the last five, six, probably a bit longer. | 0:40:40 | 0:40:42 | |
-Tell us why you got into property, Jawad. -Yeah, I was working in a bank, | 0:40:42 | 0:40:46 | |
to be honest, as a full-time employee | 0:40:46 | 0:40:47 | |
and Zahid was in this trade, anyway, before for me, | 0:40:47 | 0:40:50 | |
so, I mean, after having a chat with him | 0:40:50 | 0:40:54 | |
and due to my family circumstances, as well, | 0:40:54 | 0:40:56 | |
I wanted a job which is more flexible, | 0:40:56 | 0:40:59 | |
where I can manage my own time, | 0:40:59 | 0:41:01 | |
so property development was one of the choices | 0:41:01 | 0:41:04 | |
and, so far, I'm really pleased with it. | 0:41:04 | 0:41:06 | |
He's dragged you in, hasn't he? | 0:41:06 | 0:41:08 | |
-Dragged you away from your normal job. -Yes. -Are you enjoying it? | 0:41:08 | 0:41:11 | |
I'm loving it, to be honest. It's brilliant. | 0:41:11 | 0:41:13 | |
Yes, it is different, it's exciting, | 0:41:13 | 0:41:15 | |
especially when you get what you want under the price | 0:41:15 | 0:41:18 | |
and you meet your targets. | 0:41:18 | 0:41:19 | |
It's brilliant. | 0:41:19 | 0:41:21 | |
On paper, this looks like an ideal partnership. | 0:41:23 | 0:41:26 | |
Plenty of enthusiasm from Jawad | 0:41:26 | 0:41:28 | |
backed up with years of construction experience from Zahid, | 0:41:28 | 0:41:32 | |
but, in property, as with football, | 0:41:32 | 0:41:34 | |
the game ain't won on paper. | 0:41:34 | 0:41:37 | |
And both will have to play to their strengths | 0:41:37 | 0:41:39 | |
to get this ready for rental. | 0:41:39 | 0:41:41 | |
-Tell us what you're going to do with it. -Right, we want to convert it | 0:41:41 | 0:41:44 | |
into a three-bed, so we want to get rid of the bathroom upstairs. | 0:41:44 | 0:41:47 | |
Basically, just have a look at the central heating, the gas boiler, | 0:41:47 | 0:41:50 | |
the electrics. A few minor little things. | 0:41:50 | 0:41:53 | |
A couple of windows need changing and I think that's about it. | 0:41:53 | 0:41:56 | |
I think nothing major. | 0:41:56 | 0:41:58 | |
And, downstairs, the bathroom, wet room downstairs, | 0:41:58 | 0:42:00 | |
are you going to change it or... | 0:42:00 | 0:42:02 | |
At the moment, there's no plans. | 0:42:02 | 0:42:04 | |
-It's well built. It's very clean. So we're going to... -Ready to go? | 0:42:04 | 0:42:09 | |
-Ready to go, at the moment. -And tell us what that budget is. | 0:42:09 | 0:42:12 | |
What budget have you put aside to turn it round? | 0:42:12 | 0:42:15 | |
Well, initially, it was £10,000, | 0:42:15 | 0:42:18 | |
but I think we're going to... Looking at it now, | 0:42:18 | 0:42:20 | |
I don't think we're going to use half of that, | 0:42:20 | 0:42:22 | |
-so probably about 5,000. -He's saved you a few quid, as well. -He has. | 0:42:22 | 0:42:26 | |
He has saved me a few quid, yeah. So it's working. | 0:42:26 | 0:42:29 | |
So he's doing his job, so good. | 0:42:29 | 0:42:31 | |
How long is your timescale to get it all finished? | 0:42:31 | 0:42:34 | |
Right, timescale is a bit difficult to put together | 0:42:34 | 0:42:38 | |
-because we've got about three, four jobs running at the moment. -Ah, OK. | 0:42:38 | 0:42:41 | |
So depends on how much priority we give to this house. | 0:42:41 | 0:42:45 | |
So I think we will prioritise this one | 0:42:45 | 0:42:47 | |
because this hasn't got much work to do | 0:42:47 | 0:42:49 | |
and I think we can do it within four weeks. | 0:42:49 | 0:42:51 | |
-Amazing if you could get it finished that quick. -Yeah. | 0:42:51 | 0:42:53 | |
I think you can be done even quicker than that. | 0:42:53 | 0:42:56 | |
See, that's the builder in you talking now, isn't it? | 0:42:56 | 0:42:58 | |
-Absolutely. Yeah. -Good balance. You've got a good balance. | 0:42:58 | 0:43:01 | |
You've got what you do and Jawad leaves you to do that | 0:43:01 | 0:43:03 | |
and, Zahid, you leave him to do the finances, going to the auctions. | 0:43:03 | 0:43:07 | |
-Are you going to allow him to come with you next time? -Well, I doubt it. | 0:43:07 | 0:43:10 | |
Well, if he keeps getting properties like this at this price, | 0:43:10 | 0:43:13 | |
-I don't need to go, do I? I'll just... -Leave him on his own! | 0:43:13 | 0:43:15 | |
-Leave him on his own, yeah. -Zahid, nice to meet you and good luck. | 0:43:15 | 0:43:19 | |
-Thank you very much. -Jawad, keep going to those auctions on your own. | 0:43:19 | 0:43:22 | |
-Thank you. -Save yourself six grand every time. You'll be minted. | 0:43:22 | 0:43:25 | |
-We will be. -Good luck to you. -Thanks. | 0:43:25 | 0:43:28 | |
So it's very much a family affair. | 0:43:28 | 0:43:30 | |
Jawad has his role to play | 0:43:30 | 0:43:31 | |
and Zahid will look after all the building work. | 0:43:31 | 0:43:34 | |
There's not a lot to be done in this property and I'm pretty sure, | 0:43:34 | 0:43:37 | |
with all the bases covered, they'll be fine. | 0:43:37 | 0:43:39 | |
You can find out how they get on later on in the programme. | 0:43:39 | 0:43:43 | |
We've seen what's happened to one property, | 0:43:46 | 0:43:48 | |
but how did the others get on? | 0:43:48 | 0:43:49 | |
Will there be big major changes or a few minor improvements? | 0:43:49 | 0:43:53 | |
Let's go back and find out. | 0:43:53 | 0:43:55 | |
It's back to Willesden Green, in London now, | 0:43:56 | 0:43:59 | |
where I met sisters Julie, on the left, and Kelly, on the right. | 0:43:59 | 0:44:02 | |
They had purchased this two-bed flat | 0:44:02 | 0:44:04 | |
bang on the auction guide price of £325,000. | 0:44:04 | 0:44:09 | |
-And then it's got lights for this ceiling, as well. -Oh, great. | 0:44:11 | 0:44:14 | |
The sisters were hatching plans for a new look in the lounge. | 0:44:14 | 0:44:18 | |
A hole between the lounge and the kitchen so there's a hatch. | 0:44:18 | 0:44:21 | |
There's a breakfast bar there. | 0:44:21 | 0:44:22 | |
If the budget would stretch to it, | 0:44:22 | 0:44:24 | |
they were hoping for some long-legged avian action | 0:44:24 | 0:44:27 | |
in the bathroom. | 0:44:27 | 0:44:28 | |
We did find this amazing flamingo sort of artwork for by the bath. | 0:44:28 | 0:44:35 | |
Is the flat ready to rent out two months later? Let's find out. | 0:44:35 | 0:44:39 | |
I am delighted the girls jettisoned the hatch idea. | 0:44:50 | 0:44:53 | |
The removal of the dividing wall has been the metamorphosis | 0:44:53 | 0:44:57 | |
of this now kitchen/living/dining space. | 0:44:57 | 0:45:00 | |
The antique wood flooring is from a reclamation yard | 0:45:00 | 0:45:03 | |
and it contrasts well with the white walls. | 0:45:03 | 0:45:05 | |
The girls' penchant for mashing up old with new | 0:45:12 | 0:45:16 | |
makes for a unique stand-out style. | 0:45:16 | 0:45:19 | |
Which is why I like the idea of her little banquette. | 0:45:26 | 0:45:29 | |
That's an upholstered fixed bench to you and me. | 0:45:29 | 0:45:32 | |
However, in its place, is this sofa | 0:45:32 | 0:45:34 | |
that suits the space very well indeed. | 0:45:34 | 0:45:38 | |
The upstairs bedroom used to be a masterclass in magnolia. | 0:45:48 | 0:45:52 | |
Now, the fixtures of monochromatic shades form the perfect backdrop | 0:45:52 | 0:45:56 | |
to these splashes of colour, | 0:45:56 | 0:45:59 | |
a touch to impress potential renters. | 0:45:59 | 0:46:01 | |
The classy black-and-white theme continues on the stairwells, | 0:46:08 | 0:46:11 | |
where paintwork emphasises the sharp lines. | 0:46:11 | 0:46:14 | |
In the bathroom, I like the lack of flamingo adornments | 0:46:21 | 0:46:25 | |
and the girls' signature style might not be to everyone's taste, | 0:46:25 | 0:46:28 | |
but you can hardly call it bland. | 0:46:28 | 0:46:30 | |
Julie's designer touch also cured | 0:46:42 | 0:46:44 | |
the waste of space in the second bedroom. | 0:46:44 | 0:46:47 | |
The girls only started working together two years ago | 0:46:48 | 0:46:51 | |
when they realised they had complimentary skills | 0:46:51 | 0:46:54 | |
and because Kelly didn't like working on her own. | 0:46:54 | 0:46:57 | |
Well, the girls are here today to let us in on the siblings secrets | 0:47:05 | 0:47:08 | |
of how they did it. | 0:47:08 | 0:47:10 | |
We were quite strict with ourselves. | 0:47:10 | 0:47:12 | |
We made a lot of decisions at the beginning | 0:47:12 | 0:47:14 | |
and we had the sort of mood boards and the images. | 0:47:14 | 0:47:16 | |
Keeping it simple but really paying attention to the detail, | 0:47:16 | 0:47:19 | |
really thinking about switches and sockets | 0:47:19 | 0:47:22 | |
and then adding a few small touches | 0:47:22 | 0:47:24 | |
like the tiles on the bathroom floor. | 0:47:24 | 0:47:26 | |
I really love... My favourite feature in there is the wall lights | 0:47:26 | 0:47:29 | |
on either side of the mirror. | 0:47:29 | 0:47:31 | |
I think they just make the whole bathroom | 0:47:31 | 0:47:33 | |
look so elegant and stylish. | 0:47:33 | 0:47:35 | |
We spent exactly bang on what we thought we were going to spend | 0:47:35 | 0:47:37 | |
for the builders and we've come in at approximately six grand under | 0:47:37 | 0:47:41 | |
for all the purchases and all the stuff inside the flat, | 0:47:41 | 0:47:44 | |
so we've come in under budget which we're really happy about. | 0:47:44 | 0:47:47 | |
But there was one feature I was never quite sure would work. | 0:47:47 | 0:47:51 | |
We experimented with the hatch for a day | 0:47:51 | 0:47:53 | |
and we came in and it just looked awful. It didn't work at all. | 0:47:53 | 0:47:57 | |
There wasn't enough space between the door and the hatch itself | 0:47:57 | 0:48:00 | |
so you wouldn't be able to sit there like the breakfast bar we wanted. | 0:48:00 | 0:48:03 | |
Called the builder straightaway and said, "We're going to have to just | 0:48:03 | 0:48:06 | |
"take the whole wall down." | 0:48:06 | 0:48:08 | |
They had spent a day creating the hatch, | 0:48:08 | 0:48:12 | |
so they weren't that happy and we had to pay a bit extra for that. | 0:48:12 | 0:48:18 | |
Obviously, it was about half a day's work, | 0:48:18 | 0:48:21 | |
but it was a really good decision on our part, so they got over it. | 0:48:21 | 0:48:26 | |
And they finished the work in six weeks, | 0:48:26 | 0:48:28 | |
within their intended timescale, so has it all been worth it? | 0:48:28 | 0:48:31 | |
I'm really happy with the way the flat's turned out. | 0:48:33 | 0:48:36 | |
It's definitely... We had a vision | 0:48:36 | 0:48:37 | |
and I feel like we have achieved that. | 0:48:37 | 0:48:39 | |
It's really light, it's just clean and looks stylish | 0:48:39 | 0:48:43 | |
and it's just a really liveable flat. | 0:48:43 | 0:48:45 | |
I would happily live here. | 0:48:45 | 0:48:47 | |
But the point of the exercise is to get someone else to live here | 0:48:48 | 0:48:52 | |
and pay good money for the privilege, | 0:48:52 | 0:48:54 | |
so we called in two local estate agents | 0:48:54 | 0:48:56 | |
to see how Kelly and Julie's flat compares with its rivals, | 0:48:56 | 0:49:00 | |
and one of the agents saw the flat before the work started. | 0:49:00 | 0:49:03 | |
They've done really well with the fixtures and fittings | 0:49:05 | 0:49:08 | |
and they've mixed it all is to bring together a unique property. | 0:49:08 | 0:49:11 | |
The decoration throughout the whole property is to a very good standard | 0:49:11 | 0:49:14 | |
and I love the exposed floorboards. | 0:49:14 | 0:49:17 | |
The sisters don't want to sell just yet | 0:49:17 | 0:49:19 | |
but let's find out if the listing valuation is good news. | 0:49:19 | 0:49:23 | |
The girls have spent £36,000 in refurbishment and fees. | 0:49:23 | 0:49:27 | |
Added to the purchase price, well, that means anything above 361,000 | 0:49:27 | 0:49:32 | |
is a potential profit, minus taxes and expenses. | 0:49:32 | 0:49:36 | |
I'd market this property for £475,000 | 0:49:37 | 0:49:40 | |
and I think that we could actually achieve that, also. | 0:49:40 | 0:49:43 | |
I feel this property would sell for somewhere in the region | 0:49:43 | 0:49:45 | |
of £450,000-475,000. | 0:49:45 | 0:49:49 | |
- 475 is what we had really hoped for. | 0:49:49 | 0:49:53 | |
450 we thought we could achieve, | 0:49:53 | 0:49:55 | |
but the 475 figure would be the desirable value so that's brilliant. | 0:49:55 | 0:50:01 | |
If Julie and Kelly were to achieve that desired top figure, | 0:50:01 | 0:50:04 | |
it would mean a profit of 121,000 | 0:50:04 | 0:50:08 | |
before deductions for legal fees, stamp duty and other expenses. | 0:50:08 | 0:50:12 | |
Not bad for a six-week job, girls. | 0:50:12 | 0:50:14 | |
OK, how about those rental values, now? | 0:50:14 | 0:50:18 | |
I feel this property would rent for around £1,650 per calendar month. | 0:50:18 | 0:50:23 | |
I would say that this flat would rent for £1,700 per calendar month. | 0:50:23 | 0:50:28 | |
That would give the girls a yield on their investment of just over 5.5%. | 0:50:28 | 0:50:33 | |
Yeah, that's great. That's what we were hoping for. | 0:50:33 | 0:50:37 | |
We'd spoken to some agents in the area | 0:50:37 | 0:50:39 | |
and that was kind of what our aim was, so I'm really happy with that. | 0:50:39 | 0:50:43 | |
So do they still enjoy working together or is it sisterly strife? | 0:50:43 | 0:50:47 | |
I think me and Julie make a great team. | 0:50:47 | 0:50:49 | |
Julie's got her skills, which she's great at, and I've got my skills | 0:50:49 | 0:50:53 | |
and they just seem to work really well, really good balance. | 0:50:53 | 0:50:56 | |
We're both bringing two different things to the table, so... | 0:50:56 | 0:51:00 | |
And it's fun working with my sister. | 0:51:00 | 0:51:03 | |
We're back in the West Midlands where, earlier, I paid a visit | 0:51:10 | 0:51:13 | |
to this two-bed terraced house in Dudley. | 0:51:13 | 0:51:15 | |
What was on offer for the guide price of £58-62,000? | 0:51:18 | 0:51:21 | |
Well, the house needed modernising but, with two reception rooms, | 0:51:24 | 0:51:27 | |
two bedrooms and two bathrooms, there was plenty of space available | 0:51:27 | 0:51:32 | |
to turn it into a great family home. | 0:51:32 | 0:51:34 | |
It was bought by Jawad for £59,000 | 0:51:36 | 0:51:40 | |
and it's not very often that properties sell | 0:51:40 | 0:51:42 | |
under the guide price on this show. | 0:51:42 | 0:51:45 | |
Jawad's cousin Zahid ran a construction company | 0:51:45 | 0:51:48 | |
and he was going to give him a hand with the renovation plans. | 0:51:48 | 0:51:52 | |
Yes, I'm very pleased with everything, to be honest, | 0:51:52 | 0:51:54 | |
because I got it, I think 6K cheaper | 0:51:54 | 0:51:57 | |
than what our budget price was, so... | 0:51:57 | 0:51:59 | |
Planning to refurbish and then rent out the house, | 0:52:02 | 0:52:05 | |
they were clear that only one bathroom would survive. | 0:52:05 | 0:52:08 | |
We want to convert it into a three-bed | 0:52:08 | 0:52:10 | |
so we want to get rid of the bathroom upstairs. | 0:52:10 | 0:52:12 | |
And, with his expert eye, Zahid thought he might be able | 0:52:15 | 0:52:18 | |
to save even more than that six grand they saved at auction. | 0:52:18 | 0:52:22 | |
What budget have you put aside to turn it round? | 0:52:22 | 0:52:25 | |
Well, initially, it was £10,000, | 0:52:25 | 0:52:28 | |
but I think we're going to... | 0:52:28 | 0:52:29 | |
Looking at it now, I don't think we're going to use half of that. | 0:52:29 | 0:52:33 | |
I do admire your confidence, Zahid. | 0:52:35 | 0:52:37 | |
I just hope it isn't misplaced. | 0:52:37 | 0:52:40 | |
Five months later, | 0:52:40 | 0:52:42 | |
we return to see if that tiny budget has been stretched or snapped. | 0:52:42 | 0:52:46 | |
This is looking like a tidy job, chaps. | 0:52:57 | 0:53:00 | |
A back reception room wall has been removed | 0:53:01 | 0:53:03 | |
creating a spacious kitchen/diner. | 0:53:03 | 0:53:06 | |
The front room has been skimmed and decorated ready for furniture. | 0:53:10 | 0:53:14 | |
The wet room, which was in pretty good order before, remains unchanged. | 0:53:15 | 0:53:20 | |
Upstairs, the plan was to convert the bathroom to an extra bedroom. | 0:53:21 | 0:53:26 | |
Our original plan was to convert the bathroom | 0:53:26 | 0:53:29 | |
but then we decided to split the front bedroom into two. | 0:53:29 | 0:53:33 | |
Then there was also an idea of, | 0:53:33 | 0:53:35 | |
why not convert it into a four-bedroom house? | 0:53:35 | 0:53:37 | |
But, finally, decided no, | 0:53:37 | 0:53:40 | |
we need a bathroom upstairs and that's what we stayed with. | 0:53:40 | 0:53:43 | |
So, three bedrooms and an upstairs bathroom on a budget of £5,000. | 0:53:49 | 0:53:54 | |
Come on, guys. Did you manage it? | 0:53:54 | 0:53:57 | |
Well, originally, when I bought this property, | 0:53:57 | 0:54:00 | |
my budget was about £15,000 | 0:54:00 | 0:54:03 | |
but, on the day, when we came into the property with Zahid, | 0:54:03 | 0:54:07 | |
we saw it briefly, we thought we can get away with 10,000. | 0:54:07 | 0:54:10 | |
Well, Zahid even said 5,000. | 0:54:10 | 0:54:12 | |
-Well, I wish that was the case. -But that was a different spec. | 0:54:12 | 0:54:16 | |
So far, we have spent about 12,000. | 0:54:16 | 0:54:19 | |
I think that there's another 500 to go to finish off the jobs | 0:54:19 | 0:54:22 | |
but we are still within our budget so I'm quite pleased with that. | 0:54:22 | 0:54:27 | |
The higher spec has pushed up their budget, | 0:54:27 | 0:54:30 | |
but as well as finding extra cash, they've also had to find extra space. | 0:54:30 | 0:54:34 | |
Because our scope changed, | 0:54:40 | 0:54:42 | |
that we want to convert the front master bedroom into two bedrooms, | 0:54:42 | 0:54:46 | |
we needed extra space and the only way we could gain that | 0:54:46 | 0:54:50 | |
was to take the chimney out, | 0:54:50 | 0:54:51 | |
so that meant taking the upstairs and downstairs chimney out | 0:54:51 | 0:54:54 | |
at the front. Then, we decided to open up the kitchen | 0:54:54 | 0:54:58 | |
into a kitchen-diner. | 0:54:58 | 0:54:59 | |
That meant taking the other chimney breast out. | 0:54:59 | 0:55:03 | |
So, in total, we took out four chimney breasts. | 0:55:03 | 0:55:06 | |
Four chimney breasts equal a lot of bricks and mortar. | 0:55:09 | 0:55:13 | |
Did all this extra work impact on their timescale? | 0:55:13 | 0:55:17 | |
Our timescale for this project was four to five weeks. | 0:55:17 | 0:55:20 | |
It's taken us approximately four weeks so far | 0:55:20 | 0:55:23 | |
to get it up to this level. | 0:55:23 | 0:55:24 | |
We've got a couple more days left to finish off | 0:55:24 | 0:55:27 | |
and the only other problem we had was the start date, | 0:55:27 | 0:55:31 | |
which was delayed because of other ongoing projects | 0:55:31 | 0:55:37 | |
which were more of a priority at that stage. | 0:55:37 | 0:55:41 | |
We had to get them finished before starting this one. | 0:55:41 | 0:55:43 | |
Jawad and Zahid really added value to this house. | 0:55:47 | 0:55:51 | |
The question is - how much value? | 0:55:51 | 0:55:53 | |
We asked along two local estate agents to give us their opinions. | 0:55:57 | 0:56:02 | |
I think the buyers have done a great job | 0:56:02 | 0:56:04 | |
in the changes they've made to the property. | 0:56:04 | 0:56:06 | |
Changing the upstairs to have three bedrooms instead of two | 0:56:06 | 0:56:09 | |
is a huge bonus and the open-plan kitchen/diner is a massive bonus | 0:56:09 | 0:56:14 | |
in a property such as this. | 0:56:14 | 0:56:16 | |
It's been done to a reasonable standard throughout. | 0:56:16 | 0:56:18 | |
Particularly like the kitchen and the bathroom. | 0:56:18 | 0:56:20 | |
There's certain bits that I would recommend that he would do | 0:56:20 | 0:56:22 | |
a bit more to, but as it stands, it's very good. | 0:56:22 | 0:56:25 | |
I think that this property would be extremely popular | 0:56:25 | 0:56:28 | |
on the rental market. | 0:56:28 | 0:56:29 | |
So a quality rental property in a good location | 0:56:31 | 0:56:34 | |
should deliver a decent return for Jawad and Zahid, | 0:56:34 | 0:56:38 | |
who have spent a total of 71.5 grand | 0:56:38 | 0:56:41 | |
on this purchase and renovation. | 0:56:41 | 0:56:43 | |
What values do the estate agents put on this house? | 0:56:45 | 0:56:47 | |
On the rental market, I would expect this property | 0:56:47 | 0:56:50 | |
to achieve £550-575 per calendar month | 0:56:50 | 0:56:53 | |
and, on the sales, £95-100,000. | 0:56:53 | 0:56:56 | |
On the rental market, I'd expect to achieve a price | 0:56:56 | 0:56:59 | |
of £550 per calendar month. | 0:56:59 | 0:57:02 | |
On the sales market, I would look to achieve a price of £85,000-90,000. | 0:57:02 | 0:57:08 | |
A sale at £100,000 would net the boys a tidy profit of 28.5 grand, | 0:57:12 | 0:57:17 | |
minus taxes and fees. | 0:57:17 | 0:57:19 | |
But they are more interested in the rental income, | 0:57:21 | 0:57:24 | |
which, at £550 per calendar month, | 0:57:24 | 0:57:26 | |
would represent a return on investment of 9%. | 0:57:26 | 0:57:30 | |
I was just thinking 450 for two bedrooms | 0:57:30 | 0:57:33 | |
but adding a third bedroom, I think that we have done well. | 0:57:33 | 0:57:36 | |
At 550, I'm quite happy with it. | 0:57:36 | 0:57:39 | |
Brilliant. | 0:57:39 | 0:57:40 | |
And it seems clear that dismantling four chimney breasts | 0:57:41 | 0:57:44 | |
hasn't dampened Jawad's enthusiasm for property development. | 0:57:44 | 0:57:49 | |
I would love to do this again and again, to be honest. | 0:57:49 | 0:57:51 | |
I'm really loving it. It's absolutely amazing. | 0:57:51 | 0:57:54 | |
Definitely going to look for another property, similar sort. | 0:57:54 | 0:57:58 | |
I've got a next auction to go to | 0:57:58 | 0:58:00 | |
where I've got a few properties lined up | 0:58:00 | 0:58:02 | |
and I'm just going to see if I'm lucky enough | 0:58:02 | 0:58:05 | |
to get another bargain like this. | 0:58:05 | 0:58:07 | |
Well, that's it for today's show. | 0:58:10 | 0:58:11 | |
We'll have more action from the auction rooms for you next time. | 0:58:11 | 0:58:15 | |
Yep, we look forward to seeing you then | 0:58:15 | 0:58:16 | |
-for more Homes Under The Hammer. -We'll see you all soon. ALL: -Goodbye. | 0:58:16 | 0:58:21 |