Episode 28 Homes Under the Hammer


Episode 28

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Transcript


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Hello there. Is it a good time to invest?

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Property prices are reaching all-time highs

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in parts of the country.

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But be aware, because your cash might not go as far as it used to.

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Yes, getting a good deal is a priority.

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And one way you can do that is by visiting your local auction.

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So, do you fancy nipping along to your local auction room

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and finding out what's on offer?

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That's exactly what today's buyers did.

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Let's see what they came away with.

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In Stoke, a two-bed semi has plenty of options for a layout change.

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What there is, it just works.

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Well, it will when you fiddle about with it a bit.

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Get the sledgehammer in Willesden Green.

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Plenty of possibilities in this London flat.

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I'd like to see that come down.

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And you know what I'm going to say - open the space up.

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And in Dudley, you're spoilt for choice in this mid-terrace.

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Two bathrooms for a two-bedroom house. Decisions to be made.

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All these properties were bought at auction.

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We'll find out who got them and how much they paid,

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when these homes went under the hammer.

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You bought it, sir.

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Just on the outskirts of Stoke is the suburb of Meir.

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And the estate is built on the site of a former RAF aerodrome

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that closed in 1973.

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But with lots of amenities and good housing stock,

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it's plain to see why this is a great place to live.

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When it comes to choosing a house, it's not just about the property,

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it's about the outlook, the surroundings.

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This is a really great start.

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Because right opposite the property I'm here to see is this

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lovely open space. The house itself? It sounds pretty good.

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£50,000 plus was the guide price for this. Semidetached, two beds.

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Let's have a look.

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Ooh. Not a very good start, is it?

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It is a modern-ish door

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but it doesn't seem to be in very good condition. Hmm.

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That's not brilliant either.

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I feel like I'm going to come out and come in again!

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A bit of damp, the moment you come through the front door there.

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So, not the most auspicious of beginnings. But...

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you get to this part and, actually, it's OK.

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It's a nice-sized front living room. It's very dated.

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I mean, the whole place is just saying, "Bring me up to date!"

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Storage radiator here.

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Obviously, you haven't got central heating, so that's something

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you're going to have to factor into your budget.

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Erm, through here?

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Oh, right. Understairs cupboard.

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That's a very grand door for an understairs cupboard, isn't it?

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Onwards and through. OK. Through here, kitchen. Which is all right.

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A downstairs loo, which is quite useful.

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The kitchen itself is not a bad size, actually.

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Clearly, units need replacing.

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You might even want to open up that window, drop it down,

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you'd lose a lot of space, in terms of where you could put units.

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But maybe... I think that's a rubbish idea, actually.

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This is what happens when you are thinking about properties.

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You design as you go along.

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You get first impressions, then you go, "That's rubbish."

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The important thing is to recognise they're rubbish.

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That was a rubbish idea I just gave you. Keep it as it is.

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Cos you need the space for work surfaces.

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This is a kitchen, for goodness' sake. So, yeah, what could you do?

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Yes. Replace the units, really nice. I mean, there isn't a lot,

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but what there is, it just works.

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Well, it will when you fiddle about with it a bit.

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A little idea light bulb went on in my mind and then the power went off.

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Never mind. Let's see if I can cast more light on things as we go.

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So, upstairs. Halfway up the stairs.

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-HE LAUGHS

-One of the original windows.

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Sash window. Look at that. It's quite sweet.

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I wonder if you could renovate it. Maybe.

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Really large double bedroom at the front, which is lovely. The master.

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And, of course, it benefits from those views out across the green.

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You've got a bathroom. It's not bad. Size.

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You've got a bath in there, as you might expect.

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But it's a reasonable size family bathroom, which is good.

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The second bedroom, there are only two, is...

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is at the back of the property here, and some lovely fitted units.

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Reminds me of a caravan, in some ways.

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Probably want to get rid of them though, wouldn't you?

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And once you've got rid of them,

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you'll realise how much space is really up here.

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Between the two bedrooms,

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I think there's actually space for a third with a few layout changes.

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And, if you follow me outside,

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I'll show you another way to create space.

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So, out through a little side door of the property.

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You get to see this nice driveway here, which is good news.

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It leads to a garage, which, unfortunately,

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isn't good news at all.

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I reckon that's partly asbestos,

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so that needs to be got rid of very carefully by a specialist company.

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But at the back of the house, more good news.

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A decent-sized garden, which is nice.

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Then this space here, which I think is perfect for an extension.

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In fact, what next door have done. Stick a big extension on here.

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Maybe one storey, maybe two storeys, that would really add to

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what is already, potentially, a really nice family home.

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Yes, it does need modernisation.

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But with or without extension, there's enough room for you,

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the other half and some little ones running around.

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What can a local estate agent tell us

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about the area and the property?

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In the local area, the rental market is the strongest.

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If this was my property, I would have gas central heating fitted

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and also redecorate through to bring it up to a more modern standard

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and I'd be replacing the kitchen and the bathroom.

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Then look at putting it on the rental market.

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The agent thinks the rental market is best for this property.

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It doesn't sound like an extension would be her favoured route.

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So how much would it cost to get this up to rental standard?

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My estimate for refurbishing the property would be

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in the region of £10,000-£15,000.

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The breakdown of them costs would be somewhere in the region

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of £5,000 for having the gas central heating fitted,

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then in the region of £5,000-£10,000

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for redecoration and replacing the kitchen and bathroom.

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So, £10,000-£15,000 on top of that £50,000 guide price

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could mean a total cost of around £65,000.

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Do the values make the investment worthwhile?

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Once the work's completed, I'd place this property

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on the rental market in the region of £400-£425 per calendar month.

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For resale value, somewhere in the region of £70,000-£75,000.

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Those figures could mean around an 8% yield.

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If you wanted to rent this property out,

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there could be a profit it in it, but it's not a great sales market

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and you would need to be very careful not to overspend.

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Well, clearly, it needed some modernisation, this one.

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Once done, this could be a really lovely family home

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with all that space around the back. It's got a lovely feel to it.

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

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Lot 21. Guide price on this has been reduced down to £40,000.

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We do want to sell it. 35,000, can I say to start?

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Who will give me 35 to start with? 35 bid there. At £35,000.

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Going once, 36 back left.

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At 36,000. 37? 37,000.

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38?

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39?

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No?

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At 39,000, to my right. Looking for 40 now.

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40,000 bid on the internet.

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At £40,000? 41 anywhere else?

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41 in the room. 42 on the net.

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42?

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43? 44 on the net.

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45? 46 on the net. 47? 48 on the net.

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49, sir?

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49. 50 on the net?

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51? 51. 52 on the net?

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53, sir?

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Shaking his head. 52,000, the bid's on the internet. At £52,000.

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I'm selling it on the internet. He's back in. 53.

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I think you're out now, aren't you?

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Out on the net, so it's in the room at £53,000.

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Another one anywhere else? £53,000 once then. £53,000 twice.

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Third and final time, at £53,000.

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You bought it, sir. Well done.

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So, despite the guide price being drastically reduced,

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the dated house did go for near the original guide, and it was

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bought by John - who's just obscured from our view - for £53,000.

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He has 40 years of property development experience behind him.

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So I was keen to find out what he had planned for this two-bed semi.

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-John, great to meet you.

-And you.

-Congratulations.

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Tell me why you wanted to buy this house.

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Because, as I'm getting towards retirement,

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I've stopped doing country estates

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and large houses that take a year or two years,

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and I'm now doing three or four of these houses a year,

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which will be a lot more fun. The men who do the work for me,

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I don't employ anybody, but all the subcontractors,

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are looking forward to coming in and out

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of a house like this in three months.

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So, sorry, country estates? What were you doing in country estates?

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Buying a country estate,

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a lot of country estates had derelict buildings,

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-I would do them up and sell them.

-Wow! Forgive me,

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but quite a few people would go from this to that,

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rather than from that to this.

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This is exciting because the recession has been

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-a really awful time in the country house market.

-Has it?

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It took me two years to sell the house I was in.

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You know, which is a wonderful house.

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MUSIC: Country House by Blur

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John has decided to change his strategy in the property game,

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having sold his portfolio and moved to cheaper, less stressful,

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and less time-consuming projects.

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He seems pretty adaptable to the economics of the property business.

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Starting out converting barns 40 years ago,

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he reckons he was one of the first to see their potential.

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And the proceeds paid for his medical school tuition.

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But, in the end, he decided to doctor property, rather than people.

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And here we are.

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So, from barns to semis, what did he see in this lot?

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Very solidly built. In need of updating.

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It's a two-bedroom house, huge bedrooms.

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It'll finish up three bedrooms, one with an en-suite bathroom,

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so it's going to be two bathrooms, three bedrooms.

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There's a conservatory going off the kitchen.

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I'm opening up the wall behind me.

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So you come in from the front and you'd come into this living room,

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you'd turn right and you'd have a wonderful view right through

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the conservatory and into the garden.

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I try to aim for certain standards.

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Because the builder who does a lot of work for me said,

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"Why don't you just tart it up and sell it and make a quick 10,000?"

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It just so happens, yesterday, nearby, a chap offered me

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-110,000 for this house completed.

-Wow.

-So, a substantial sum of money.

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He's offered you that based on what you were planning?

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Absolutely, I showed him the plans and he loved it.

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So, he's now got first refusal.

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I didn't say yes, because I just don't know what the final price...

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I'd be delighted to take 110, or even 105. But, anyway...

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It's not just to do with the profit. It's the fun of doing them.

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John has got fantastic plans for this, for sure,

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and I love his enthusiasm and obvious passion for property.

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No matter its price.

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John is planning to bring country estate specs to this house.

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The new conservatory will flow into

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the renovated kitchen and living room.

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And he'll be adding a utility room by reducing

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the size of the downstairs toilet.

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Upstairs, he'll reduce the bathroom size to gain a third bedroom

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and add an en-suite in another bedroom.

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All that in three months.

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But he's making a generous saving in the budget.

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All of my local suppliers, whom I've been dealing with for years,

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are going to supply all the materials at absolute cost.

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Which is a wonderful thank you from them.

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So, the budget will be between 23 and 25.

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It'll be very well finished. So, it'll be an upmarket spec

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for a medium market house.

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Now, there is always a danger with that that there is going to

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be a ceiling price on properties in the area.

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If you build it to such high specs, you might not get your money back.

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It may be the case, but I've set standards all my life.

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I've been told that fact for years.

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And so far, we've normally achieved the price that we set out for.

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But even if I have less of a profit, that doesn't matter.

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I want to finish the house to the best spec

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and to the specs that I've been dealing in all my adult life.

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Congratulations. Good luck with it.

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-Look forward to seeing how you get on.

-Thank you very much.

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Well, John is certainly a man with a plan and a pretty impressive

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one it is too, totally transforming this semidetached.

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How will it look? I can't wait to see.

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You can find out later in the show.

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Willesden Green used to be an area beloved of Aussie and Kiwi

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and South African backpackers.

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Now, the delis and the cafes are moving in

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and attracting a much more professional clientele.

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So, this is an area definitely on the up.

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People moving into this area will undoubtedly appreciate

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the transport links to the capital.

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The nearby North Circular Road, the Tube, or even Shanks's pony.

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One of the most important rules when buying property in London

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is to try and buy within a short walk of the train station.

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Now, the property I'm here to see definitely ticks that box,

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with just a few minutes' walk from Willesden Green tube.

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So, the location really is fantastic.

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But what about the property?

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Here it is, it's a two-bed flat

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up on the second floor of this mid-terraced house.

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And it went to auction with a guide price of £325,000 plus.

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I'm going in.

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MUSIC: Take It To The Top by Kool & The Gang

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This communal area presents a bit of an obstacle course.

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It's all feeling a little bit tired. A bit like me!

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Oh, a couple of flights of stairs later and, well, we reach the flat.

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The decor's a little bit basic.

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Brown carpets, magnolia walls everywhere. A bit beigey.

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But the entrance hall is light,

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thanks to that big old window up there.

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On this level, you've got a small bathroom through here

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and then into the first of two bedrooms. Now, it's a small double.

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You've got some sloping ceilings over here

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and they do eat into the space a bit,

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but everything is in good condition. So, so far, so good.

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I actually really like this flat.

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Despite the fact it has a downstairs bathroom,

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but it is conveniently next-door to bedroom one

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with gas central heating.

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Slight minus points for the view of the neighbours at the back,

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but at least, we're in a bedroom where curtains are

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normally closed when it's occupied.

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And renovating this room looks like it should be just a superficial job.

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MUSIC: The Attic by Paul Weller

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Up a few more stairs and there are a few more rooms.

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So, you got the kitchen through here, a bedroom, potentially,

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through here and through here, well, a bedroom or a lounge.

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I actually think a lounge would work so much better.

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Although, the room is very eaved.

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You can tell you're right up in the loft.

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Now, the other side of this wall is a kitchen.

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There's a partition wall there. I'd like to see that come down.

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And, you know what I'm going to say - open the space up!

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Because it is quite cramped in here

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and to have the flow of the kitchen

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into this room, I think, would work really well.

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Don't forget that you have to get

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the freeholder's permission to do that,

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but then you could have a bedroom, a nice kitchen

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through into a great lounge

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where you could have an eating area by the window.

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That would really work well.

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So, I mentioned the freeholder. Let's talk about that lease.

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The good news is, there's 125 years left on that. So, no worries.

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But does this flat offer a good opportunity?

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What does the local estate agent think its pros and cons are?

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Firstly, the cons.

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The external parts could do with some work, the main facade.

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Internally, I think it's a good flat. It has two good-sized bedrooms,

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a fair sized reception. So I think it would do well.

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Now, as I've said, this area

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is moving away from its backpacker past.

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What kind of rentals could a buyer be hoping to attract?

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This is a good rental area.

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Round the corner from Willesden Green Station.

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For that reason, you'd have young professionals, or older professionals.

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City workers wanting to live in this location, in particular.

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So, what rent could a commuting professional be expecting to pay

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for a refurbished flat like this?

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I think you're looking in the region of £1,500-£1,600 per calendar month.

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Given the guide price is £325,000,

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what would it list for on the open market?

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I would say that this property is worth £450,000 at a maximum,

0:17:520:17:56

once refurbished.

0:17:560:17:58

Which leaves £125,000 - full refurbishment, profit

0:17:580:18:02

and the usual taxes and expenses.

0:18:020:18:05

To achieve the figure of £450,000,

0:18:050:18:08

I'd say you'd need to do a pretty high-end job.

0:18:080:18:11

Pay attention to the colour scheme and small details,

0:18:110:18:13

like what doors you have, skirtings, covings if you have them as well.

0:18:130:18:17

Even with a high-spec kitchen and chrome-plated taps,

0:18:170:18:20

there must be room for some profit.

0:18:200:18:23

This two-bed flat needs a bit of a cosmetic refurb to get it

0:18:230:18:26

looking its best. A new kitchen? Yep. A new bathroom? Yep.

0:18:260:18:31

And, overall, redecoration will transform the place.

0:18:310:18:35

So, who was willing to bid for this Willesden Green property?

0:18:350:18:39

Let's head to auction and find out.

0:18:390:18:41

Second-floor flat, two bedrooms, in the same ownership for 27 years.

0:18:410:18:46

Start me at 300, please. Opening bid of 300.

0:18:460:18:49

It's all gone very quiet all of a sudden. 300,000?

0:18:490:18:52

I say, 300 there on my left.

0:18:520:18:54

Thank you. Lady's bid. 300. On the aisle.

0:18:540:18:56

300 here. Somebody else? 305? On the aisle?

0:18:560:19:01

Oh! Standing. I was looking for somebody sitting down.

0:19:010:19:04

Thank you very much. 305, may I say? 305. 305. And ten?

0:19:040:19:08

310. And 15? 15. And 20? And 20.

0:19:080:19:13

And 25? And 25.

0:19:130:19:16

And 30? No. 325 then.

0:19:160:19:22

330 anywhere else? First time at 325.

0:19:220:19:24

Second time at 325.

0:19:240:19:27

Lady's bid, standing in the back.

0:19:270:19:28

For the last time at £325,000. All done?

0:19:280:19:32

Sold. Well done, madam. 325.

0:19:320:19:36

A successful bid of £325,000, bang on the guide price,

0:19:360:19:40

came from Kelly at the auction with her dad David.

0:19:400:19:43

It's not Kelly's first time on Homes Under The Hammer.

0:19:430:19:46

We met way back in 2007,

0:19:460:19:49

when she bought a garden flat, also in Willesden.

0:19:490:19:52

Then she was looking for an addition to her daytime job

0:19:520:19:55

as an events manager in the music industry.

0:19:550:19:59

-So how long have you been doing this for?

-Eight months.

0:19:590:20:02

And is this your first property you've bought?

0:20:020:20:05

No, I... It's the first one in auction. I've bought and sold one,

0:20:050:20:09

and one is on the market, hopefully, waiting for it to sell,

0:20:090:20:12

and I'm doing two other ones up as well.

0:20:120:20:16

To have turned around five properties in just eight months,

0:20:160:20:20

I'd call Kelly a go-getter, and she sold the garden flat

0:20:200:20:24

and made a profit without doing any refurbishment.

0:20:240:20:26

Now, Kelly's in business with sister Julie,

0:20:260:20:29

and I met them at their new flat to find out their plans.

0:20:290:20:32

MUSIC: Hey, Soul Sister by Train

0:20:320:20:34

# Hey, soul sister

0:20:340:20:35

# Ain't that Mr Mister on the radio, stereo?

0:20:350:20:40

# The way you move ain't fair, you know... #

0:20:400:20:43

Kelly and Julie, congratulations.

0:20:430:20:45

Now, Kelly, you've been buying and selling

0:20:450:20:47

since I met you seven years ago.

0:20:470:20:49

We have, we've bought and sold, we've bought and kept, which is nice,

0:20:490:20:53

and now we're onto this one.

0:20:530:20:55

Now, you were quite a busy young lady,

0:20:550:20:57

-I remember you were in the music industry.

-I was.

0:20:570:20:59

Are you still doing that?

0:20:590:21:01

-I'm a freelance event manager for music and sport events.

-Yeah.

0:21:010:21:04

So, yes, I'm still in music and doing a bit of sport events as well,

0:21:040:21:09

freelancing, so makes sure we have time

0:21:090:21:11

for property...at the same time.

0:21:110:21:13

So, Julie, how did she rope you into this? Come on, tell me.

0:21:130:21:16

We just did one project together.

0:21:160:21:18

I worked as a set designer originally, and then

0:21:180:21:20

I sort of ended up doing interior design, and then, on a project,

0:21:200:21:24

we just decided it made sense for me to do the interior for Kelly.

0:21:240:21:27

We actually make a really good combination.

0:21:270:21:29

We've realised that we can never live together,

0:21:290:21:32

but we can work together, so I'm more of the project manager,

0:21:320:21:36

and do that side of things, and Julie comes in on the design. And we...

0:21:360:21:42

Yeah, we get on very well, working together. It sort of seems to...

0:21:420:21:45

-Because you don't live together?

-Yes.

-Yeah, exactly.

0:21:450:21:47

-Who's the older sister?

-I'm the older one.

-Older sister.

0:21:470:21:50

-Yeah.

-And who is the one that's a little bit more in control,

0:21:500:21:53

and will be in charge of what is going on and what's happening?

0:21:530:21:57

-Erm, it...

-It depends on what we're talking about.

-Yeah.

0:21:570:22:01

I'm good with budgets and keeping the costs down,

0:22:010:22:05

and that sort of thing, and Julie is more...

0:22:050:22:08

-She'll be more sort of strict on design and how it looks.

-Yeah.

0:22:080:22:12

The sisters have been working together for the last two years,

0:22:120:22:15

after they decided their skills and experience

0:22:150:22:18

made a great working partnership in property.

0:22:180:22:20

As they both have jobs that are freelance, and by nature,

0:22:200:22:23

a bit sporadic, property makes a great fit for both of them.

0:22:230:22:27

So what's the plan?

0:22:270:22:28

We're going to refurbish the whole flat, so we're going to put

0:22:300:22:34

a new kitchen in, new bathroom, and we're going to create...

0:22:340:22:38

a hole between the lounge and the kitchen, so there's a hatch.

0:22:380:22:42

So there's a breakfast bar there. New, you know, wooden flooring,

0:22:420:22:46

so just give the whole thing a bit of a lift,

0:22:460:22:49

and then we would like to rent it out afterwards.

0:22:490:22:51

So what about the kitchen? Now, you mentioned a hatch.

0:22:510:22:54

I was just a bit concerned that still might cut it off a little bit.

0:22:540:22:57

I think we wanted something just a bit different,

0:22:570:22:59

and that way, you get the best of both worlds, so it's, you know,

0:22:590:23:03

it's adjoining, you can talk to people in both rooms.

0:23:030:23:06

It gives that light.

0:23:060:23:07

The lounge will get the light from the kitchen, but at the same time,

0:23:070:23:10

it also creates a breakfast bar, and we think that's quite a nice touch.

0:23:100:23:14

Is there anything that you're going to put into this

0:23:140:23:16

property that will sort of, like, make it stand apart?

0:23:160:23:18

Yeah, I mean, it's, we always try to strike a balance

0:23:180:23:21

between making sure that it's going to be

0:23:210:23:23

to most people's taste, but at the same time,

0:23:230:23:26

not going for that

0:23:260:23:27

-generic developer's, boring sort of look.

-New, new, new.

0:23:270:23:31

-Magnolia, Magnolia.

-Yeah, which just feels a bit uninspired.

0:23:310:23:34

Exactly, so it's just striking that balance with a few little...

0:23:340:23:38

We're doing a banquette in the living room,

0:23:380:23:40

and maybe having an interesting fabric on that.

0:23:400:23:42

So you can sit on it and you can also use it as storage,

0:23:420:23:45

-I'm guessing.

-Yeah, underneath.

-Yeah, exactly.

0:23:450:23:47

We'll have probably lift-up seats

0:23:470:23:48

so that you can have storage underneath.

0:23:480:23:50

So just little touches like that, which make it a bit different.

0:23:500:23:54

We like to be a bit quirky.

0:23:540:23:56

That's kind of maybe our style,

0:23:560:23:58

but like Julie was saying, we don't like to go overboard with that,

0:23:580:24:01

because it's not going to help sell and rent out.

0:24:010:24:04

What about the bathroom?

0:24:040:24:05

Oh, so, the bathroom, we found lovely, old,

0:24:050:24:09

like, old Victorian-style tiles.

0:24:090:24:11

We've decided to go for brass taps and shower.

0:24:110:24:15

I think that'll be... It'll give it a good look.

0:24:150:24:18

We did find this amazing flamingo, sort of, artwork

0:24:180:24:24

for by the bath, but we're just working out budgets...

0:24:240:24:26

if it works with our budget or not. It's quite expensive.

0:24:260:24:29

And also, will that be to everybody's taste?

0:24:290:24:31

-That's what you've got to remember.

-Maybe not.

-Yeah.

0:24:310:24:33

Maybe you two are going to love that, but somebody else

0:24:330:24:36

that's buying the property or renting it might not like that.

0:24:360:24:38

I know. White tiles sound boring to us, but it will...

0:24:380:24:42

It will look lovely.

0:24:420:24:44

The girls have a materials budget of £18,000,

0:24:440:24:47

and their builder has quoted a further £17,000 for labour

0:24:470:24:51

and expects to finish in a month's time.

0:24:510:24:54

Girls, I'm really excited for you both.

0:24:540:24:55

Good luck with this project and I can't wait to see the magic touch.

0:24:550:24:58

-Thank you.

-Thank you. Thanks so much.

-Congratulations.

-Thanks.

0:24:580:25:01

It's been a good few years since we last saw Kelly on the show,

0:25:030:25:05

and she is still buying and doing up property.

0:25:050:25:08

This time round, though, she has sister Julie lending a helping hand,

0:25:080:25:12

so will those sisters be able to transform this flat

0:25:120:25:16

from shabby to chic in a month?

0:25:160:25:19

You can find out how Kelly and Julie, the sisters,

0:25:190:25:21

get on, later on in the programme.

0:25:210:25:23

Coming up, the family theme continues,

0:25:250:25:27

as two cousins come together as duo developers in Dudley.

0:25:270:25:30

He's dragged you in, hasn't he?

0:25:300:25:32

He's dragged you away from your normal job.

0:25:320:25:33

I'm loving it, to be honest.

0:25:330:25:36

And in Willesden Green, London,

0:25:360:25:38

are sisters Kelly and Julie still enjoying working together?

0:25:380:25:41

It's fun, working with my sister.

0:25:410:25:43

We're heading back now to Stoke-on-Trent, where I looked at

0:25:490:25:53

a brick-built, two-bedroom semi, bought at auction for £53,000

0:25:530:25:57

by John, who turned out to be

0:25:570:25:59

more at home on a different kind of estate.

0:25:590:26:03

Country estates? What were you doing in country estates?

0:26:030:26:06

Buying a country estate, which...

0:26:060:26:07

A lot of country estates had derelict buildings.

0:26:070:26:10

I would do them up and sell them.

0:26:100:26:12

Wow. Forgive me, but quite a few people would go from this to that,

0:26:120:26:16

-rather than from that to this.

-This is exciting,

0:26:160:26:19

because the recession has been a really awful time.

0:26:190:26:22

A property developer for over 40 years,

0:26:220:26:24

John sold most of his portfolio to move to smaller properties

0:26:240:26:28

like these, so what were his plans here?

0:26:280:26:31

It'll finish up, three bedrooms, one with an en-suite bathroom,

0:26:310:26:35

so there's going to be two bathrooms, three bedrooms.

0:26:350:26:37

There's a conservatory going off the kitchen.

0:26:370:26:39

I'm opening up the wall behind me, so when you come in from the front,

0:26:390:26:43

-you have a wonderful view right through.

-Wow.

0:26:430:26:45

Now, there is always a danger with that, that you're sort of...

0:26:450:26:48

-There is going to be a ceiling price on properties in the area.

-Yeah.

0:26:480:26:51

And if you build it to such high spec,

0:26:510:26:54

-you might not get your money back.

-It may be the case.

0:26:540:26:56

It's not just to do with the profit. It's the fun of doing them.

0:26:560:27:00

Profit or fun, three-and-a-half months later,

0:27:000:27:03

we're back to find out

0:27:030:27:04

if John's changes will help him to resell.

0:27:040:27:07

Let's start with the kitchen wall.

0:27:070:27:09

MUSIC: I Wouldn't Normally Do This Kind Of Thing by The Pet Shop Boys

0:27:090:27:13

A much brighter arrangement.

0:27:150:27:17

Now, what about those dull old kitchen units?

0:27:170:27:21

# Ask me why

0:27:260:27:29

# I'll say it's most unusual

0:27:290:27:33

# How can I even try to explain?

0:27:330:27:39

# Why today, I feel like dancing

0:27:390:27:43

# And singing like lovers sing

0:27:430:27:46

# When I wouldn't normally do this kind of thing... #

0:27:460:27:52

But the biggest change is this permanent conservatory.

0:27:520:27:56

The back door and downstairs loo area has been

0:27:560:27:58

rearranged into a small utility, and shorter but brighter downstairs loo.

0:27:580:28:04

# Wouldn't normally do

0:28:060:28:09

# Wouldn't normally do this kind of

0:28:090:28:15

# This kind of thing... #

0:28:150:28:20

Now, with daylight coming from both ends, the lounge is much brighter.

0:28:200:28:24

The once huge bathroom is now smaller,

0:28:260:28:28

to allow reconfiguration of the upstairs.

0:28:280:28:31

# Wouldn't normally do this kind of thing... #

0:28:310:28:35

There are now three bedrooms and all of them

0:28:350:28:38

have built-in wardrobe space.

0:28:380:28:41

Much is unrecognisable,

0:28:410:28:43

but the master bedroom once looked like this.

0:28:430:28:45

# This kind of thing... #

0:28:450:28:47

Now look at it!

0:28:470:28:49

It has the most wardrobe space, and en-suite facilities too.

0:28:490:28:53

So, how has John found the experience,

0:28:570:29:00

working on a much smaller urban house than those he's more used to?

0:29:000:29:04

# This kind of thing. #

0:29:050:29:08

This is a mini country house, with its en-suite,

0:29:080:29:10

and its conservatory, and its fitted kitchen

0:29:100:29:13

and a utility, downstairs cloakroom, landscaped gardens.

0:29:130:29:16

It's... It's been a joy to do.

0:29:160:29:18

How did John turn it from a two-bedroom to a three-bedroom?

0:29:180:29:23

A quarter of the bathroom was unusable

0:29:230:29:25

because of all the unnecessary boxing

0:29:250:29:27

in the days when they had massive water tanks and cylinders.

0:29:270:29:30

And so, by stripping that out, it made a good third bedroom.

0:29:300:29:33

The main bedroom was so huge that I was able to make it

0:29:330:29:37

still into a double bedroom but with fitted wardrobes and so it was very

0:29:370:29:41

easy to make it into a three-bedroomed house,

0:29:410:29:43

which makes a huge difference.

0:29:430:29:45

John has a trusted team of contractors, so what was his role?

0:29:450:29:49

I did all the organising of materials, I wouldn't let

0:29:490:29:51

anybody go off-site to go and pick things up, that was my job.

0:29:510:29:54

And just...and monitor it.

0:29:540:29:56

And, you know, I had a programme of work, and although they never

0:29:560:30:00

actually work properly, it meant that we've got to this stage.

0:30:000:30:04

Three-and-a-half months, I think is quite acceptable for

0:30:040:30:06

the total stripping out of the house, redesigning it in total,

0:30:060:30:09

taking all the plaster off and going back to bare walls.

0:30:090:30:12

It's been a big exercise, really, but a very enjoyable one.

0:30:120:30:17

Ah, yes. That raises the fun versus profit argument.

0:30:170:30:21

John initially budgeted £25,000 for the work,

0:30:210:30:24

but has his quest for high spec taken its toll on that figure?

0:30:240:30:28

I've actually spent 27,000, to the nearest hundred pounds,

0:30:300:30:34

and I... For what we've done, I think that's an amazing budget.

0:30:340:30:37

We called in two local property experts to find out

0:30:390:30:42

if it's all been worthwhile.

0:30:420:30:44

First up, the one who saw the property before renovation began.

0:30:440:30:47

I think he's made some fantastic changes to the property

0:30:470:30:50

since I last saw it.

0:30:500:30:51

My favourite part that he's added is the extension to the rear.

0:30:510:30:54

It opens up the property and it's very light and bright throughout.

0:30:540:30:57

The property has been finished above standard for the area.

0:30:570:31:01

It looks like it's been re-plastered,

0:31:010:31:03

new central heating, and decorated neutral all through.

0:31:030:31:06

It really will appeal to quite a few different types of people.

0:31:060:31:10

Will going above and beyond what is generally expected

0:31:100:31:13

in this area adversely affect John's position?

0:31:130:31:17

Let's get the rental values and see

0:31:170:31:19

if we can sway John away from his intention to sell.

0:31:190:31:22

For rental, he could ask for £525 per calendar month.

0:31:220:31:26

If this property was to be placed on the rental market,

0:31:260:31:29

I would look somewhere in the region of £495 per calendar month.

0:31:290:31:32

Taking the average,

0:31:320:31:33

that would equate to an 8% yield on John's £80,000 investment.

0:31:330:31:37

Tempting?

0:31:370:31:40

I'm going to sell this one.

0:31:400:31:41

Basically, after eight years of really difficult times in

0:31:410:31:46

the property market, I'm going to build up

0:31:460:31:49

my capital base for my retirement.

0:31:490:31:51

Fair enough, John. Let's see how much the agents feel that

0:31:510:31:54

your capital base could swell by.

0:31:540:31:56

I would value this property at £110,000.

0:31:560:32:00

I'd recommend an asking price

0:32:000:32:02

somewhere in the region of £100-£105,000.

0:32:020:32:04

That's about right for this area, but what amazes me,

0:32:040:32:07

and especially people who might be watching this in London and

0:32:070:32:10

the major cities -

0:32:100:32:11

three bedrooms, two bathrooms, fitted kitchens and so on -

0:32:110:32:14

they just will not believe that you can get a house of this calibre,

0:32:140:32:17

this quality, for that money.

0:32:170:32:19

But, yes, I accept that that is the value around here.

0:32:190:32:23

In fact, after filming,

0:32:230:32:25

John actually sold the property for £120,000,

0:32:250:32:29

adding to his capital base to the tune of £40,000,

0:32:290:32:33

minus the usual taxes and expenses.

0:32:330:32:35

And as to his future investments...

0:32:350:32:37

I love auctions.

0:32:370:32:38

You know, it's a wonderful way to buy properties, and what I'm

0:32:380:32:42

always looking out for is something that's derelict or semi-derelict.

0:32:420:32:45

That's my ideal purchase.

0:32:450:32:47

I get the feeling that now goes for urban properties

0:32:470:32:49

as well as the ones in the country.

0:32:490:32:51

There's no more arresting sight than the West Midlands town of Dudley

0:33:010:33:05

bathed in sunshine.

0:33:050:33:07

Dudley Castle sits over the town as a reminder of more turbulent times,

0:33:070:33:11

but the town is fighting a modern-day battle against economic decline,

0:33:110:33:16

but the good news is that a major redevelopment is planned

0:33:160:33:20

including a brand-new £7 million market.

0:33:200:33:23

The property I'm here to see is just on the outskirts of Dudley

0:33:320:33:36

and I'm pretty sure Lenny Henry came from round these parts.

0:33:360:33:39

It is on a noisy, busy main road,

0:33:390:33:42

and here it is. It's a two-bed, mid-terrace house

0:33:420:33:45

with a guide price of £58-62,000. Let's take a look.

0:33:450:33:50

Despite the traffic, this is quite an attractive property

0:33:520:33:55

with some lovely terracotta details on the front.

0:33:550:33:58

Nice and bright. I do like that in a hallway.

0:34:010:34:04

Lovely high ceilings as well, so a nice feeling of space.

0:34:040:34:08

First reception room is here,

0:34:080:34:11

which is an OK size.

0:34:110:34:12

It has got double glazed windows as well,

0:34:120:34:15

but you can still hear that traffic slightly.

0:34:150:34:17

Old-fashioned fireplace.

0:34:170:34:19

Again, ceilings are lovely.

0:34:190:34:21

Has got a feeling of late '80s, early '90s.

0:34:210:34:24

Let's have an explore.

0:34:240:34:25

MUSIC: Acceptable in the 80's by Calvin Harris

0:34:250:34:28

And, although the house is Victorian, I do mean 1980s.

0:34:340:34:39

The decor isn't that old.

0:34:390:34:42

To the back of the house, there's a second reception room.

0:34:420:34:44

Again, it could do with some redecoration

0:34:440:34:47

but I like those French doors that lead out to the back yard.

0:34:470:34:50

Through into the kitchen, which is an OK size.

0:34:520:34:54

It's in reasonable condition as well, so decent in here.

0:34:540:34:58

Through into a wet room, which is quite typical,

0:34:580:35:02

to have a downstairs bathroom, as such, in this era of house.

0:35:020:35:06

Now, you could actually put a bath in here and a separate shower

0:35:060:35:09

but not everybody likes a downstairs bathroom.

0:35:090:35:12

Let's see what we can find upstairs.

0:35:120:35:14

Upstairs, there are two good-sized bedrooms,

0:35:230:35:26

one to the front of the house with two windows letting in lots of light,

0:35:260:35:30

and one in the middle.

0:35:300:35:32

But, right at the back, there's something of a surprise.

0:35:320:35:36

So, down this very long corridor

0:35:380:35:41

and you find another bathroom upstairs, which I'm pleased to say,

0:35:410:35:44

but it gives you two bathrooms for a two-bedroom house.

0:35:440:35:47

Decisions to be made.

0:35:470:35:49

Do you change it into a bedroom? Have the bathroom downstairs? Not for me.

0:35:490:35:53

I always like to have my bathroom upstairs, next to the bedrooms.

0:35:530:35:57

MUSIC: Should I Stay Or Should I Go by The Clash

0:35:570:35:59

If you think purely in business terms,

0:36:020:36:04

then converting the upstairs bathroom into a third bedroom

0:36:040:36:07

makes a lot of sense.

0:36:070:36:09

Higher rental and higher sales,

0:36:090:36:11

but, if you are buying this for your home,

0:36:110:36:14

would you be tempted to keep it upstairs?

0:36:140:36:17

Should it stay or should it go?

0:36:170:36:19

Let's get some facts and figures from a local property expert

0:36:210:36:25

and see what he thinks is the best option.

0:36:250:36:27

Swings and roundabouts.

0:36:340:36:35

What you lose with one hand, you gain on the other.

0:36:350:36:37

Overall, my preference would be to have the third bedroom upstairs

0:36:370:36:41

as opposed to a bathroom upstairs.

0:36:410:36:44

You'll have more people interested in having three bedrooms than two.

0:36:440:36:48

And is there any other refurbishment work he'd recommend?

0:36:500:36:54

I'd be looking to replace all the window units to the rear

0:36:540:36:57

to double-glazed units.

0:36:570:36:58

Possibly replace the front door

0:36:580:37:00

and, obviously, a general refurbishment

0:37:000:37:03

in terms of painting and carpets.

0:37:030:37:05

So what difference would having that third bedroom

0:37:070:37:10

make in terms of rental income?

0:37:100:37:12

As a two-bed, I'd look to market this property

0:37:120:37:15

at around £475-495 per calendar month.

0:37:150:37:18

As a three-bed, It would be slightly higher at £525 per calendar month.

0:37:180:37:23

And the sales values?

0:37:240:37:27

Sales, as a two-bed,

0:37:270:37:28

I'd probably be looking to put this on the market around £85,000.

0:37:280:37:31

As a three-bed, again, slightly higher at £95,000.

0:37:310:37:36

This is a pretty traditional two-bed terrace.

0:37:370:37:40

It does need a bit of work doing to it but you do get a lot of space.

0:37:400:37:43

If you get it for anywhere near the guide price,

0:37:430:37:45

you've got yourself a bit of a steal.

0:37:450:37:47

Let's see who agreed when it went to auction.

0:37:470:37:49

Two-bedroom, mid-terrace freehold house.

0:37:490:37:53

Start me, if you will.

0:37:530:37:55

70,000 anywhere?

0:37:550:37:58

This lot came up at the end of a busy day and fatigue had obviously set in

0:37:580:38:03

as nobody in the room was willing to raise their hand.

0:38:030:38:05

£60,000.

0:38:050:38:07

The auctioneer dropped the opening price by £20,000,

0:38:070:38:11

and we rejoin with the asking price at 50 grand.

0:38:110:38:14

At 50,000 anywhere?

0:38:140:38:17

Start me if you will. What a buy this will be, sir. Thank you.

0:38:170:38:21

At 50,000 I'm bid. Is it 60 now?

0:38:210:38:24

At 50,000. Is it 60? 60, sir?

0:38:240:38:27

55, thank you. At 55.

0:38:270:38:29

At 55, I'm bid.

0:38:290:38:31

At 55,000 then, are we all done?

0:38:310:38:35

Sir, do you want one? Do you want 56?

0:38:350:38:37

56. Thank you, sir.

0:38:370:38:38

57. 58, sir?

0:38:380:38:41

At 58. Thank you, sir. At 58. At 58. And 59?

0:38:410:38:45

It's still a fantastic buy at 59, sir.

0:38:450:38:48

Are you sure?

0:38:480:38:50

59. 59.

0:38:500:38:52

60, sir? No?

0:38:520:38:54

At £59,000 on my left.

0:38:540:38:58

At £59,000 for the first time.

0:38:580:39:02

£59,000 for the second time.

0:39:020:39:05

Third and last time.

0:39:050:39:08

That's yours, sir. You came in with the one bid which was enough.

0:39:080:39:12

That final bid of £59,000 was made by local property developer Jawad.

0:39:140:39:19

I met Jawad back at the property along with his cousin Zahid,

0:39:190:39:23

who runs a construction company, to hear what their plans were.

0:39:230:39:26

-Zahid, nice to meet you.

-Likewise.

0:39:300:39:32

Jawad, nice to meet you. Congratulations.

0:39:320:39:34

-Thank you.

-Let's start at the auction.

0:39:340:39:36

How was it? What was it like?

0:39:360:39:37

I wasn't expecting to start the bid at this price.

0:39:370:39:41

I was just relaxed and sit back,

0:39:410:39:43

until he just stopped at 59. I just waved my hand and that's it.

0:39:430:39:46

And did you get it at the price you wanted it? Were you happy?

0:39:460:39:49

Yes, I'm very pleased with it, to be honest,

0:39:490:39:51

because I got it, I think, 6K cheaper

0:39:510:39:54

than what our budget price was, so...

0:39:540:39:56

Do you take different roles?

0:39:560:39:58

Does Jawad take one role and you take another role or do you mix it up?

0:39:580:40:01

Well, Jawad does all the searching, running round,

0:40:010:40:04

looking for the properties. I go down and view them

0:40:040:40:07

and then I leave him to it.

0:40:070:40:09

So, you do all the work, really, Jawad. That's what I'm getting.

0:40:090:40:11

Initially! Initially, but, then, once... If we do get the property,

0:40:110:40:15

then I'll do all the building works, organise all the labour,

0:40:150:40:21

plant, materials, whatever's required.

0:40:210:40:23

Zahid, tell me a bit about yourself before you got, you know,

0:40:230:40:25

right into the property world.

0:40:250:40:27

Well, I'm a civil engineer by profession.

0:40:270:40:30

I left the construction industry about four years ago

0:40:300:40:33

to set up my own construction company.

0:40:330:40:35

Been doing properties and renovating them

0:40:350:40:40

for the last five, six, probably a bit longer.

0:40:400:40:42

-Tell us why you got into property, Jawad.

-Yeah, I was working in a bank,

0:40:420:40:46

to be honest, as a full-time employee

0:40:460:40:47

and Zahid was in this trade, anyway, before for me,

0:40:470:40:50

so, I mean, after having a chat with him

0:40:500:40:54

and due to my family circumstances, as well,

0:40:540:40:56

I wanted a job which is more flexible,

0:40:560:40:59

where I can manage my own time,

0:40:590:41:01

so property development was one of the choices

0:41:010:41:04

and, so far, I'm really pleased with it.

0:41:040:41:06

He's dragged you in, hasn't he?

0:41:060:41:08

-Dragged you away from your normal job.

-Yes.

-Are you enjoying it?

0:41:080:41:11

I'm loving it, to be honest. It's brilliant.

0:41:110:41:13

Yes, it is different, it's exciting,

0:41:130:41:15

especially when you get what you want under the price

0:41:150:41:18

and you meet your targets.

0:41:180:41:19

It's brilliant.

0:41:190:41:21

On paper, this looks like an ideal partnership.

0:41:230:41:26

Plenty of enthusiasm from Jawad

0:41:260:41:28

backed up with years of construction experience from Zahid,

0:41:280:41:32

but, in property, as with football,

0:41:320:41:34

the game ain't won on paper.

0:41:340:41:37

And both will have to play to their strengths

0:41:370:41:39

to get this ready for rental.

0:41:390:41:41

-Tell us what you're going to do with it.

-Right, we want to convert it

0:41:410:41:44

into a three-bed, so we want to get rid of the bathroom upstairs.

0:41:440:41:47

Basically, just have a look at the central heating, the gas boiler,

0:41:470:41:50

the electrics. A few minor little things.

0:41:500:41:53

A couple of windows need changing and I think that's about it.

0:41:530:41:56

I think nothing major.

0:41:560:41:58

And, downstairs, the bathroom, wet room downstairs,

0:41:580:42:00

are you going to change it or...

0:42:000:42:02

At the moment, there's no plans.

0:42:020:42:04

-It's well built. It's very clean. So we're going to...

-Ready to go?

0:42:040:42:09

-Ready to go, at the moment.

-And tell us what that budget is.

0:42:090:42:12

What budget have you put aside to turn it round?

0:42:120:42:15

Well, initially, it was £10,000,

0:42:150:42:18

but I think we're going to... Looking at it now,

0:42:180:42:20

I don't think we're going to use half of that,

0:42:200:42:22

-so probably about 5,000.

-He's saved you a few quid, as well.

-He has.

0:42:220:42:26

He has saved me a few quid, yeah. So it's working.

0:42:260:42:29

So he's doing his job, so good.

0:42:290:42:31

How long is your timescale to get it all finished?

0:42:310:42:34

Right, timescale is a bit difficult to put together

0:42:340:42:38

-because we've got about three, four jobs running at the moment.

-Ah, OK.

0:42:380:42:41

So depends on how much priority we give to this house.

0:42:410:42:45

So I think we will prioritise this one

0:42:450:42:47

because this hasn't got much work to do

0:42:470:42:49

and I think we can do it within four weeks.

0:42:490:42:51

-Amazing if you could get it finished that quick.

-Yeah.

0:42:510:42:53

I think you can be done even quicker than that.

0:42:530:42:56

See, that's the builder in you talking now, isn't it?

0:42:560:42:58

-Absolutely. Yeah.

-Good balance. You've got a good balance.

0:42:580:43:01

You've got what you do and Jawad leaves you to do that

0:43:010:43:03

and, Zahid, you leave him to do the finances, going to the auctions.

0:43:030:43:07

-Are you going to allow him to come with you next time?

-Well, I doubt it.

0:43:070:43:10

Well, if he keeps getting properties like this at this price,

0:43:100:43:13

-I don't need to go, do I? I'll just...

-Leave him on his own!

0:43:130:43:15

-Leave him on his own, yeah.

-Zahid, nice to meet you and good luck.

0:43:150:43:19

-Thank you very much.

-Jawad, keep going to those auctions on your own.

0:43:190:43:22

-Thank you.

-Save yourself six grand every time. You'll be minted.

0:43:220:43:25

-We will be.

-Good luck to you.

-Thanks.

0:43:250:43:28

So it's very much a family affair.

0:43:280:43:30

Jawad has his role to play

0:43:300:43:31

and Zahid will look after all the building work.

0:43:310:43:34

There's not a lot to be done in this property and I'm pretty sure,

0:43:340:43:37

with all the bases covered, they'll be fine.

0:43:370:43:39

You can find out how they get on later on in the programme.

0:43:390:43:43

We've seen what's happened to one property,

0:43:460:43:48

but how did the others get on?

0:43:480:43:49

Will there be big major changes or a few minor improvements?

0:43:490:43:53

Let's go back and find out.

0:43:530:43:55

It's back to Willesden Green, in London now,

0:43:560:43:59

where I met sisters Julie, on the left, and Kelly, on the right.

0:43:590:44:02

They had purchased this two-bed flat

0:44:020:44:04

bang on the auction guide price of £325,000.

0:44:040:44:09

-And then it's got lights for this ceiling, as well.

-Oh, great.

0:44:110:44:14

The sisters were hatching plans for a new look in the lounge.

0:44:140:44:18

A hole between the lounge and the kitchen so there's a hatch.

0:44:180:44:21

There's a breakfast bar there.

0:44:210:44:22

If the budget would stretch to it,

0:44:220:44:24

they were hoping for some long-legged avian action

0:44:240:44:27

in the bathroom.

0:44:270:44:28

We did find this amazing flamingo sort of artwork for by the bath.

0:44:280:44:35

Is the flat ready to rent out two months later? Let's find out.

0:44:350:44:39

I am delighted the girls jettisoned the hatch idea.

0:44:500:44:53

The removal of the dividing wall has been the metamorphosis

0:44:530:44:57

of this now kitchen/living/dining space.

0:44:570:45:00

The antique wood flooring is from a reclamation yard

0:45:000:45:03

and it contrasts well with the white walls.

0:45:030:45:05

The girls' penchant for mashing up old with new

0:45:120:45:16

makes for a unique stand-out style.

0:45:160:45:19

Which is why I like the idea of her little banquette.

0:45:260:45:29

That's an upholstered fixed bench to you and me.

0:45:290:45:32

However, in its place, is this sofa

0:45:320:45:34

that suits the space very well indeed.

0:45:340:45:38

The upstairs bedroom used to be a masterclass in magnolia.

0:45:480:45:52

Now, the fixtures of monochromatic shades form the perfect backdrop

0:45:520:45:56

to these splashes of colour,

0:45:560:45:59

a touch to impress potential renters.

0:45:590:46:01

The classy black-and-white theme continues on the stairwells,

0:46:080:46:11

where paintwork emphasises the sharp lines.

0:46:110:46:14

In the bathroom, I like the lack of flamingo adornments

0:46:210:46:25

and the girls' signature style might not be to everyone's taste,

0:46:250:46:28

but you can hardly call it bland.

0:46:280:46:30

Julie's designer touch also cured

0:46:420:46:44

the waste of space in the second bedroom.

0:46:440:46:47

The girls only started working together two years ago

0:46:480:46:51

when they realised they had complimentary skills

0:46:510:46:54

and because Kelly didn't like working on her own.

0:46:540:46:57

Well, the girls are here today to let us in on the siblings secrets

0:47:050:47:08

of how they did it.

0:47:080:47:10

We were quite strict with ourselves.

0:47:100:47:12

We made a lot of decisions at the beginning

0:47:120:47:14

and we had the sort of mood boards and the images.

0:47:140:47:16

Keeping it simple but really paying attention to the detail,

0:47:160:47:19

really thinking about switches and sockets

0:47:190:47:22

and then adding a few small touches

0:47:220:47:24

like the tiles on the bathroom floor.

0:47:240:47:26

I really love... My favourite feature in there is the wall lights

0:47:260:47:29

on either side of the mirror.

0:47:290:47:31

I think they just make the whole bathroom

0:47:310:47:33

look so elegant and stylish.

0:47:330:47:35

We spent exactly bang on what we thought we were going to spend

0:47:350:47:37

for the builders and we've come in at approximately six grand under

0:47:370:47:41

for all the purchases and all the stuff inside the flat,

0:47:410:47:44

so we've come in under budget which we're really happy about.

0:47:440:47:47

But there was one feature I was never quite sure would work.

0:47:470:47:51

We experimented with the hatch for a day

0:47:510:47:53

and we came in and it just looked awful. It didn't work at all.

0:47:530:47:57

There wasn't enough space between the door and the hatch itself

0:47:570:48:00

so you wouldn't be able to sit there like the breakfast bar we wanted.

0:48:000:48:03

Called the builder straightaway and said, "We're going to have to just

0:48:030:48:06

"take the whole wall down."

0:48:060:48:08

They had spent a day creating the hatch,

0:48:080:48:12

so they weren't that happy and we had to pay a bit extra for that.

0:48:120:48:18

Obviously, it was about half a day's work,

0:48:180:48:21

but it was a really good decision on our part, so they got over it.

0:48:210:48:26

And they finished the work in six weeks,

0:48:260:48:28

within their intended timescale, so has it all been worth it?

0:48:280:48:31

I'm really happy with the way the flat's turned out.

0:48:330:48:36

It's definitely... We had a vision

0:48:360:48:37

and I feel like we have achieved that.

0:48:370:48:39

It's really light, it's just clean and looks stylish

0:48:390:48:43

and it's just a really liveable flat.

0:48:430:48:45

I would happily live here.

0:48:450:48:47

But the point of the exercise is to get someone else to live here

0:48:480:48:52

and pay good money for the privilege,

0:48:520:48:54

so we called in two local estate agents

0:48:540:48:56

to see how Kelly and Julie's flat compares with its rivals,

0:48:560:49:00

and one of the agents saw the flat before the work started.

0:49:000:49:03

They've done really well with the fixtures and fittings

0:49:050:49:08

and they've mixed it all is to bring together a unique property.

0:49:080:49:11

The decoration throughout the whole property is to a very good standard

0:49:110:49:14

and I love the exposed floorboards.

0:49:140:49:17

The sisters don't want to sell just yet

0:49:170:49:19

but let's find out if the listing valuation is good news.

0:49:190:49:23

The girls have spent £36,000 in refurbishment and fees.

0:49:230:49:27

Added to the purchase price, well, that means anything above 361,000

0:49:270:49:32

is a potential profit, minus taxes and expenses.

0:49:320:49:36

I'd market this property for £475,000

0:49:370:49:40

and I think that we could actually achieve that, also.

0:49:400:49:43

I feel this property would sell for somewhere in the region

0:49:430:49:45

of £450,000-475,000.

0:49:450:49:49

- 475 is what we had really hoped for.

0:49:490:49:53

450 we thought we could achieve,

0:49:530:49:55

but the 475 figure would be the desirable value so that's brilliant.

0:49:550:50:01

If Julie and Kelly were to achieve that desired top figure,

0:50:010:50:04

it would mean a profit of 121,000

0:50:040:50:08

before deductions for legal fees, stamp duty and other expenses.

0:50:080:50:12

Not bad for a six-week job, girls.

0:50:120:50:14

OK, how about those rental values, now?

0:50:140:50:18

I feel this property would rent for around £1,650 per calendar month.

0:50:180:50:23

I would say that this flat would rent for £1,700 per calendar month.

0:50:230:50:28

That would give the girls a yield on their investment of just over 5.5%.

0:50:280:50:33

Yeah, that's great. That's what we were hoping for.

0:50:330:50:37

We'd spoken to some agents in the area

0:50:370:50:39

and that was kind of what our aim was, so I'm really happy with that.

0:50:390:50:43

So do they still enjoy working together or is it sisterly strife?

0:50:430:50:47

I think me and Julie make a great team.

0:50:470:50:49

Julie's got her skills, which she's great at, and I've got my skills

0:50:490:50:53

and they just seem to work really well, really good balance.

0:50:530:50:56

We're both bringing two different things to the table, so...

0:50:560:51:00

And it's fun working with my sister.

0:51:000:51:03

We're back in the West Midlands where, earlier, I paid a visit

0:51:100:51:13

to this two-bed terraced house in Dudley.

0:51:130:51:15

What was on offer for the guide price of £58-62,000?

0:51:180:51:21

Well, the house needed modernising but, with two reception rooms,

0:51:240:51:27

two bedrooms and two bathrooms, there was plenty of space available

0:51:270:51:32

to turn it into a great family home.

0:51:320:51:34

It was bought by Jawad for £59,000

0:51:360:51:40

and it's not very often that properties sell

0:51:400:51:42

under the guide price on this show.

0:51:420:51:45

Jawad's cousin Zahid ran a construction company

0:51:450:51:48

and he was going to give him a hand with the renovation plans.

0:51:480:51:52

Yes, I'm very pleased with everything, to be honest,

0:51:520:51:54

because I got it, I think 6K cheaper

0:51:540:51:57

than what our budget price was, so...

0:51:570:51:59

Planning to refurbish and then rent out the house,

0:52:020:52:05

they were clear that only one bathroom would survive.

0:52:050:52:08

We want to convert it into a three-bed

0:52:080:52:10

so we want to get rid of the bathroom upstairs.

0:52:100:52:12

And, with his expert eye, Zahid thought he might be able

0:52:150:52:18

to save even more than that six grand they saved at auction.

0:52:180:52:22

What budget have you put aside to turn it round?

0:52:220:52:25

Well, initially, it was £10,000,

0:52:250:52:28

but I think we're going to...

0:52:280:52:29

Looking at it now, I don't think we're going to use half of that.

0:52:290:52:33

I do admire your confidence, Zahid.

0:52:350:52:37

I just hope it isn't misplaced.

0:52:370:52:40

Five months later,

0:52:400:52:42

we return to see if that tiny budget has been stretched or snapped.

0:52:420:52:46

This is looking like a tidy job, chaps.

0:52:570:53:00

A back reception room wall has been removed

0:53:010:53:03

creating a spacious kitchen/diner.

0:53:030:53:06

The front room has been skimmed and decorated ready for furniture.

0:53:100:53:14

The wet room, which was in pretty good order before, remains unchanged.

0:53:150:53:20

Upstairs, the plan was to convert the bathroom to an extra bedroom.

0:53:210:53:26

Our original plan was to convert the bathroom

0:53:260:53:29

but then we decided to split the front bedroom into two.

0:53:290:53:33

Then there was also an idea of,

0:53:330:53:35

why not convert it into a four-bedroom house?

0:53:350:53:37

But, finally, decided no,

0:53:370:53:40

we need a bathroom upstairs and that's what we stayed with.

0:53:400:53:43

So, three bedrooms and an upstairs bathroom on a budget of £5,000.

0:53:490:53:54

Come on, guys. Did you manage it?

0:53:540:53:57

Well, originally, when I bought this property,

0:53:570:54:00

my budget was about £15,000

0:54:000:54:03

but, on the day, when we came into the property with Zahid,

0:54:030:54:07

we saw it briefly, we thought we can get away with 10,000.

0:54:070:54:10

Well, Zahid even said 5,000.

0:54:100:54:12

-Well, I wish that was the case.

-But that was a different spec.

0:54:120:54:16

So far, we have spent about 12,000.

0:54:160:54:19

I think that there's another 500 to go to finish off the jobs

0:54:190:54:22

but we are still within our budget so I'm quite pleased with that.

0:54:220:54:27

The higher spec has pushed up their budget,

0:54:270:54:30

but as well as finding extra cash, they've also had to find extra space.

0:54:300:54:34

Because our scope changed,

0:54:400:54:42

that we want to convert the front master bedroom into two bedrooms,

0:54:420:54:46

we needed extra space and the only way we could gain that

0:54:460:54:50

was to take the chimney out,

0:54:500:54:51

so that meant taking the upstairs and downstairs chimney out

0:54:510:54:54

at the front. Then, we decided to open up the kitchen

0:54:540:54:58

into a kitchen-diner.

0:54:580:54:59

That meant taking the other chimney breast out.

0:54:590:55:03

So, in total, we took out four chimney breasts.

0:55:030:55:06

Four chimney breasts equal a lot of bricks and mortar.

0:55:090:55:13

Did all this extra work impact on their timescale?

0:55:130:55:17

Our timescale for this project was four to five weeks.

0:55:170:55:20

It's taken us approximately four weeks so far

0:55:200:55:23

to get it up to this level.

0:55:230:55:24

We've got a couple more days left to finish off

0:55:240:55:27

and the only other problem we had was the start date,

0:55:270:55:31

which was delayed because of other ongoing projects

0:55:310:55:37

which were more of a priority at that stage.

0:55:370:55:41

We had to get them finished before starting this one.

0:55:410:55:43

Jawad and Zahid really added value to this house.

0:55:470:55:51

The question is - how much value?

0:55:510:55:53

We asked along two local estate agents to give us their opinions.

0:55:570:56:02

I think the buyers have done a great job

0:56:020:56:04

in the changes they've made to the property.

0:56:040:56:06

Changing the upstairs to have three bedrooms instead of two

0:56:060:56:09

is a huge bonus and the open-plan kitchen/diner is a massive bonus

0:56:090:56:14

in a property such as this.

0:56:140:56:16

It's been done to a reasonable standard throughout.

0:56:160:56:18

Particularly like the kitchen and the bathroom.

0:56:180:56:20

There's certain bits that I would recommend that he would do

0:56:200:56:22

a bit more to, but as it stands, it's very good.

0:56:220:56:25

I think that this property would be extremely popular

0:56:250:56:28

on the rental market.

0:56:280:56:29

So a quality rental property in a good location

0:56:310:56:34

should deliver a decent return for Jawad and Zahid,

0:56:340:56:38

who have spent a total of 71.5 grand

0:56:380:56:41

on this purchase and renovation.

0:56:410:56:43

What values do the estate agents put on this house?

0:56:450:56:47

On the rental market, I would expect this property

0:56:470:56:50

to achieve £550-575 per calendar month

0:56:500:56:53

and, on the sales, £95-100,000.

0:56:530:56:56

On the rental market, I'd expect to achieve a price

0:56:560:56:59

of £550 per calendar month.

0:56:590:57:02

On the sales market, I would look to achieve a price of £85,000-90,000.

0:57:020:57:08

A sale at £100,000 would net the boys a tidy profit of 28.5 grand,

0:57:120:57:17

minus taxes and fees.

0:57:170:57:19

But they are more interested in the rental income,

0:57:210:57:24

which, at £550 per calendar month,

0:57:240:57:26

would represent a return on investment of 9%.

0:57:260:57:30

I was just thinking 450 for two bedrooms

0:57:300:57:33

but adding a third bedroom, I think that we have done well.

0:57:330:57:36

At 550, I'm quite happy with it.

0:57:360:57:39

Brilliant.

0:57:390:57:40

And it seems clear that dismantling four chimney breasts

0:57:410:57:44

hasn't dampened Jawad's enthusiasm for property development.

0:57:440:57:49

I would love to do this again and again, to be honest.

0:57:490:57:51

I'm really loving it. It's absolutely amazing.

0:57:510:57:54

Definitely going to look for another property, similar sort.

0:57:540:57:58

I've got a next auction to go to

0:57:580:58:00

where I've got a few properties lined up

0:58:000:58:02

and I'm just going to see if I'm lucky enough

0:58:020:58:05

to get another bargain like this.

0:58:050:58:07

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

0:58:100:58:11

We'll have more action from the auction rooms for you next time.

0:58:110:58:15

Yep, we look forward to seeing you then

0:58:150:58:16

-for more Homes Under The Hammer.

-We'll see you all soon. ALL:

-Goodbye.

0:58:160:58:21

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