0:00:02 > 0:00:04Welcome to the programme. The weather has been quite changeable
0:00:04 > 0:00:07today. Tomorrow, who knows? A bit like the property market.
0:00:07 > 0:00:10And, yes, it can fluctuate, making it hard to spot a bargain.
0:00:10 > 0:00:15But you know what I am going to say, don't you? One way to find out and gauge the temperature of your local
0:00:15 > 0:00:18property market is to visit a property auction.
0:00:44 > 0:00:46Well, there is something for everyone's
0:00:46 > 0:00:50budget at a property auction, from flat to huge family homes.
0:00:50 > 0:00:53And some need lots of work and others not so much.
0:00:53 > 0:00:57Yeah, let's see what sort of projects we have on today's show.
0:00:57 > 0:00:58Coming up in Derbyshire,
0:00:58 > 0:01:02this gardener is using development to leave behind landscaping.
0:01:02 > 0:01:04It hasn't got a garden, what a shame.
0:01:04 > 0:01:07That is another reason why I bought it.
0:01:07 > 0:01:09And talking of things being left behind,
0:01:09 > 0:01:12there's plenty in this terrace in Kent. Wow!
0:01:12 > 0:01:15That's a whole lot of rubble in that room.
0:01:17 > 0:01:20Whereas things look on the up for this flat in London.
0:01:20 > 0:01:23Lovely high ceilings. An old-fashioned fireplace.
0:01:23 > 0:01:26And they've got central heating as well, so I'm impressed so far,
0:01:26 > 0:01:27very impressed.
0:01:28 > 0:01:31All these properties have been sold at auction.
0:01:31 > 0:01:33We'll find out who bought them and what they paid for them
0:01:33 > 0:01:35when they went under the hammer.
0:01:40 > 0:01:43I'm now off to the town of Ilkeston.
0:01:43 > 0:01:46Although officially in Derbyshire, Nottingham city centre is
0:01:46 > 0:01:48closer, being only eight miles away,
0:01:48 > 0:01:52while Derby city centre is nine miles away.
0:01:52 > 0:01:55Well, Ilkeston marketplace here is the location of a charter
0:01:55 > 0:02:00fair that was granted by King Henry III back in 1252.
0:02:00 > 0:02:04And it's actually one of the largest charter fairs in the UK.
0:02:05 > 0:02:09It is also older than Nottingham Goose Fair but, like today,
0:02:09 > 0:02:13when the charter fair's not in, there's a normal weekly market.
0:02:13 > 0:02:17Time to find out what is on offer in Ilkeston's property market.
0:02:17 > 0:02:21Well, just a mile or so from the marketplace is the property
0:02:21 > 0:02:25I'm here to see. Two-bed mid-terrace, had a guide price of 48,000 quid.
0:02:25 > 0:02:29Looks all right from the outside. Let's take a look.
0:02:29 > 0:02:31Oh, hello, that could catch you out,
0:02:31 > 0:02:34bit of a step down as you walk through the door.
0:02:34 > 0:02:37I was just about to say, it is not very big from the outside,
0:02:37 > 0:02:41but these kind of properties can often be deceptive on the inside.
0:02:41 > 0:02:45But let's carry on anyway. Stairs up to the bedrooms there.
0:02:48 > 0:02:49Well.
0:02:50 > 0:02:52I've never seen anything like that before.
0:02:52 > 0:02:55Wow, that is like an under stairs cupboard,
0:02:55 > 0:02:57but you've got this little sort of serving hatch.
0:02:57 > 0:03:02Answers to what you think that's all about on a postcard to the show, please.
0:03:02 > 0:03:06Very strange, but basically what you have is one large room here,
0:03:06 > 0:03:09probably knocked through at some stage.
0:03:09 > 0:03:11But, you know, it's a pretty good size.
0:03:11 > 0:03:14Kitchen, not so big, out the back there.
0:03:14 > 0:03:18A few signs of damp on the floors. Apart from that, yes, pretty...
0:03:19 > 0:03:21..pretty weird, actually.
0:03:22 > 0:03:24- # Ain't that peculiar? - Ain't that peculiar?
0:03:24 > 0:03:26# Ain't that peculiar... #
0:03:26 > 0:03:30OK, maybe I'm being thrown by that strange under stairs
0:03:30 > 0:03:32arrangement, because, as terraced houses go,
0:03:32 > 0:03:35this is pretty standard and not in bad shape.
0:03:37 > 0:03:41The back garden is more of a yard, competently paved over.
0:03:41 > 0:03:44But there is enough room to hang your washing out there,
0:03:44 > 0:03:46and for a table and chairs for when it's sunny.
0:03:46 > 0:03:50And in fact, from the outside, the house looks pretty presentable, with
0:03:50 > 0:03:54UPVC double glazed windows and doors and the brickwork in good nick.
0:03:54 > 0:03:56So far, so good.
0:03:56 > 0:04:00Well, the one thing that is missing so far is a bathroom and loo,
0:04:00 > 0:04:04so the good news is it is upstairs somewhere, I've just got to find it.
0:04:04 > 0:04:05Front bedroom, not a bad size.
0:04:05 > 0:04:09Floors seem a bit, well, quite a lot all over the place, actually.
0:04:09 > 0:04:12But this is the second bedroom, and, oh, no.
0:04:12 > 0:04:15Ta-da! It's the bathroom.
0:04:15 > 0:04:18Well, the good news is at least it is upstairs,
0:04:18 > 0:04:22but really, accessing it off this bedroom isn't ideal.
0:04:22 > 0:04:24And I can't really see a solution.
0:04:24 > 0:04:27Normally you would look at putting some kind of corridor.
0:04:27 > 0:04:32The trouble is, if you did that, this room would become tiny. So I think...
0:04:32 > 0:04:35you're pretty much going to have to leave it as it is.
0:04:35 > 0:04:39However, keeping the current layout does make this property a less
0:04:39 > 0:04:40attractive proposition,
0:04:40 > 0:04:43especially for two people looking to rent a room each.
0:04:43 > 0:04:46They would have to be on pretty friendly terms.
0:04:46 > 0:04:49But overall, it is a solid little house that could be a good
0:04:49 > 0:04:53rental investment, if you can find a way around that problem.
0:04:55 > 0:04:58Time to find out what a local estate agent thinks of this two-bed
0:04:58 > 0:05:01house in Ilkeston, guided at £48,000,
0:05:01 > 0:05:05and if there is an issue with the bathroom through the bedroom set-up.
0:05:07 > 0:05:11With the bathroom in its current state, it would affect certainly
0:05:11 > 0:05:15the saleability of the property and also the rental proposition.
0:05:15 > 0:05:16It needs a new bathroom.
0:05:16 > 0:05:19While the bathroom is being installed, it would be a
0:05:19 > 0:05:22good idea to separate part of the back bedroom,
0:05:22 > 0:05:27to create a corridor, landing space, to give two good usable bedrooms.
0:05:27 > 0:05:30So, he favours convenience over the size of the bedroom,
0:05:30 > 0:05:32but what else needs doing here?
0:05:32 > 0:05:34It is ready for complete refurbishment.
0:05:34 > 0:05:37Will need an element of replastering.
0:05:37 > 0:05:38A new kitchen, a new bathroom,
0:05:38 > 0:05:42probably new central heating system, complete redecoration.
0:05:42 > 0:05:46The refurbishment of this property needs to be good, neutral,
0:05:46 > 0:05:49modern, contemporary fittings. Not over the top.
0:05:49 > 0:05:53Needs to appeal to as wide an audience as possible.
0:05:53 > 0:05:57But once done, what sort of returns could a renovated property expect?
0:05:57 > 0:05:59First, a resale value.
0:05:59 > 0:06:01The resale value of the property,
0:06:01 > 0:06:03once modernised to a good standard,
0:06:03 > 0:06:06and creating a landing space upstairs to give separate access
0:06:06 > 0:06:09to the bathroom, the resale value
0:06:09 > 0:06:11would be between £70,000 and £75,000.
0:06:11 > 0:06:13And the rental returns?
0:06:13 > 0:06:18Rental income, pounds per calendar month, would be £400 to £425.
0:06:18 > 0:06:21Well, there's a few modifications you would need to make,
0:06:21 > 0:06:24not least the bathroom and that strange under stairs thingy going
0:06:24 > 0:06:28on. But other than that, this is a really nice little starter
0:06:28 > 0:06:29home or rental property.
0:06:29 > 0:06:33Let's see who agreed and bought it when it went under the hammer.
0:06:34 > 0:06:37We've got a guide price on this, 48,000. Start me where you will.
0:06:37 > 0:06:40Who will start me off on the guide at 48, may I say?
0:06:40 > 0:06:4345, bid me where you will. 44.
0:06:43 > 0:06:4644 I'm bid, we are away at 44. 45.
0:06:46 > 0:06:4946. 47 is bid.
0:06:49 > 0:06:5348. 49 is bid.
0:06:53 > 0:06:5549 I'm bid to my left. And a half.
0:06:55 > 0:06:59£49,500. 50. 50 is bid.
0:06:59 > 0:07:03And a half. 50,500 is the bid. One, sir. 51 is bid.
0:07:03 > 0:07:05And a half, sir.
0:07:05 > 0:07:09£51,000 away to my left. Looking for 51,500 elsewhere.
0:07:09 > 0:07:13If not, we are going to sell it. He is back in, and a half.
0:07:13 > 0:07:17It is yours, 52. 52 is bid. And a half, sir.
0:07:17 > 0:07:19And a half. 53.
0:07:19 > 0:07:22Shakes his head. £52,500 at the back of the room.
0:07:22 > 0:07:26We are going to sell it at £52,500 for the first time.
0:07:26 > 0:07:29We are all done with it at £52,500 for the second time.
0:07:29 > 0:07:33Third and final time, hammer is up. Gone, well done, sir.
0:07:33 > 0:07:37And that successful bid of £52,500 was made by Phil
0:07:37 > 0:07:39and his partner Julia.
0:07:40 > 0:07:42Julia wasn't able to come to the house,
0:07:42 > 0:07:46but we met up with Phil to find out his plans for this purchase.
0:07:46 > 0:07:50- Phil, good to meet you. - And you.- Congratulations.- Thank you.
0:07:50 > 0:07:52Tell me why you wanted to buy this place.
0:07:52 > 0:07:56Well, we grew up in Ilkeston, lived 300 yards down the road that way.
0:07:56 > 0:07:59- Oh, really.- And then when I was in my teens,
0:07:59 > 0:08:02- we moved 300 yards that way.- Wow.
0:08:02 > 0:08:06- You met in the middle.- Yes. So, kind of know the area rather well.
0:08:06 > 0:08:09It's got good schools, a nursery just across the road.
0:08:09 > 0:08:12So, you know, it is prime for rental.
0:08:12 > 0:08:15So it's the location more than anything else that first
0:08:15 > 0:08:16- attracted you?- Yes.
0:08:16 > 0:08:19And we only live a mile and a half away as well, so, you know,
0:08:19 > 0:08:23because we do a lot of the work ourselves, so it is quite easy,
0:08:23 > 0:08:25we can finish work at night and come here and do a bit.
0:08:25 > 0:08:29- You'd obviously walked past it, I imagine, hundreds of times.- Yes.
0:08:29 > 0:08:33And apparently it has been empty for three years, so to actually,
0:08:33 > 0:08:36you know, when it came to auction...
0:08:36 > 0:08:39We went for another property which was a priority,
0:08:39 > 0:08:41which we got that one.
0:08:41 > 0:08:43- And then this was the next one along.- Wow.
0:08:43 > 0:08:47- So, we ended up with two. - Oh, did you?- Yeah.- Oh, right, OK.
0:08:47 > 0:08:49Is this something you do?
0:08:49 > 0:08:52We've got three other properties that we've done,
0:08:52 > 0:08:53so this is our fourth.
0:08:53 > 0:08:57Sounds like the couple's rental portfolio is definitely growing,
0:08:57 > 0:09:01but for Phil this is still a sideline to his main day job.
0:09:01 > 0:09:04- What do you do at the moment? - Landscape gardener.- Oh, OK.
0:09:04 > 0:09:07It hasn't got a garden, what a shame.
0:09:07 > 0:09:10- I know, that's another reason why I bought it. - MARTIN LAUGHS
0:09:10 > 0:09:12I've not got any work to do here on that.
0:09:12 > 0:09:14Yes, that will be the good thing.
0:09:14 > 0:09:18Before I come to meet you, I was 50 foot up a tree and, yes,
0:09:18 > 0:09:23and I don't fancy doing that that for...in another ten years' time.
0:09:23 > 0:09:26I struggle now, so... I'm not a youngster any more.
0:09:26 > 0:09:30- This will be your pension pot then, will it?- Yes, definitely.
0:09:30 > 0:09:33I want to be retired before 60, so that is my aim.
0:09:34 > 0:09:37# I've been around too many years
0:09:37 > 0:09:39# I've also shed too many tears
0:09:39 > 0:09:44# And I feel that old age coming on... #
0:09:44 > 0:09:48Phil may feel he's getting on a bit too much to be climbing trees,
0:09:48 > 0:09:50but he is still planning to get stuck into the entire
0:09:50 > 0:09:54renovation himself, except for plastering and electrics.
0:09:54 > 0:09:57So what exactly does he have in mind for the place?
0:09:57 > 0:10:02Coat it completely, everything will be replastered, new floors.
0:10:02 > 0:10:07- Central heating, rewire. Patio doors in that bit.- Oh, OK.
0:10:07 > 0:10:10- Just bricking the kitchen door up. - Right.- And the serving hatch.
0:10:10 > 0:10:15- Oh, don't you like that?- No, can't quite work out why that is here.
0:10:15 > 0:10:19- It is a bit strange, isn't it?- Yes. So, that will be bricked up.
0:10:19 > 0:10:22- Going to move some of the radiators around and that.- Good.
0:10:22 > 0:10:24But we try and do it with rentals.
0:10:24 > 0:10:28If you do them quite well, then you tend to get better clients in.
0:10:30 > 0:10:33And Phil has found himself a way to make the bathroom more
0:10:33 > 0:10:36accessible without creating a corridor in the second bedroom.
0:10:36 > 0:10:40He plans to put a doorway in the front bedroom into the bathroom,
0:10:40 > 0:10:42Jack and Jill style as it's known.
0:10:42 > 0:10:45A rejig of the bathroom layout will be required, but it will mean
0:10:45 > 0:10:50direct access into a shared bathroom and no lost bedroom space.
0:10:50 > 0:10:53Now, why didn't I think of that? So what is the budget?
0:10:53 > 0:10:58Around 7,000. Got a contingency of probably 1,000...
0:10:58 > 0:11:00- if anything untoward appears.- Right.
0:11:00 > 0:11:03- Is there anything that might be an issue, do you know?- Not really.
0:11:03 > 0:11:07There's a bit of a bow in the roof that... Might have to put
0:11:07 > 0:11:11- a joist in to support it, but nothing major has come up.- Right.
0:11:11 > 0:11:14But you want to get it nice and then you can sort of rent it out
0:11:14 > 0:11:17- and forget about it for a little bit?- Yes.- So what is the timescale?
0:11:17 > 0:11:19Three months hopefully,
0:11:19 > 0:11:22so we're working on the other one that we bought first.
0:11:22 > 0:11:26We want to get that one done, because that doesn't need as much.
0:11:26 > 0:11:28Once that is done, it is full focus on here.
0:11:28 > 0:11:30And then onto more, perhaps.
0:11:31 > 0:11:35Our target was to get four, because at four, in ten years' time,
0:11:35 > 0:11:37hopefully, if I've got mortgages paid off,
0:11:37 > 0:11:42- I will be able to, you know, take things a bit easy.- Right. - That's our aim.
0:11:42 > 0:11:44Well, listen, congratulations. Good luck with it.
0:11:44 > 0:11:48- Thank you.- Look forward to seeing how you get on.- All right. Cheers.
0:11:48 > 0:11:54Well, from landscape gardening to growing a property portfolio,
0:11:54 > 0:11:58Phil is definitely on the way to getting his property so he can retire at 60.
0:11:58 > 0:12:03How will he get on with this one? You can find out later in the show.
0:12:09 > 0:12:11This is Sittingbourne in Kent.
0:12:11 > 0:12:13In the 19th century, Sittingbourne helped fuel
0:12:13 > 0:12:18the expansion of London by producing bricks by the barge-ful.
0:12:18 > 0:12:21Indeed, the bricks for London Bridge were all made here.
0:12:21 > 0:12:24Now it is Sittingbourne that is rapidly expanding, helped
0:12:24 > 0:12:28by the fact you can commute by train to London in just over an hour.
0:12:29 > 0:12:34# Brick by brick... #
0:12:36 > 0:12:40Well, I'm here to see a property quite close to Sittingbourne
0:12:40 > 0:12:42high street. Here it is.
0:12:42 > 0:12:46Now, originally it was a four-storey end of terrace, and it had three
0:12:46 > 0:12:49bedrooms. And it had a guide price at auction of
0:12:49 > 0:12:52£180,000 to £185,000.
0:12:52 > 0:12:55Looks great from the outside. I'm going in.
0:12:57 > 0:13:01Four stories is a whole lot of house and a whole lot of windows.
0:13:01 > 0:13:04But I've noticed the ones at the front at least are all
0:13:04 > 0:13:08double glazed. I've always loved this style of house,
0:13:08 > 0:13:11they are usually full of character. There's not so much in here.
0:13:11 > 0:13:15You can see the skirtings have already been ripped up,
0:13:15 > 0:13:17and work has certainly started.
0:13:17 > 0:13:21Wow, that's a whole lot of rubble in that room. But a good space.
0:13:21 > 0:13:23You've got a nice ceiling height,
0:13:23 > 0:13:26although there isn't much of a ceiling at the moment.
0:13:26 > 0:13:29The stairs going up, it is one of those tall, skinny houses that
0:13:29 > 0:13:32I always find you do lots of running up and downstairs.
0:13:32 > 0:13:35But you know, I'm always bashing on about the character.
0:13:35 > 0:13:39Look, some lovely old fireplaces! That's so nice to see.
0:13:39 > 0:13:42I hope they stay in this property.
0:13:42 > 0:13:47And one thing I absolutely love here, walled garden.
0:13:47 > 0:13:49Look at that, beautiful. Wow!
0:13:51 > 0:13:55Yes, a decent size garden is certainly a bonus,
0:13:55 > 0:13:56and that is what you have here.
0:13:56 > 0:13:58Up to the first floor
0:13:58 > 0:14:01and the property looks pretty much the same as the ground floor.
0:14:01 > 0:14:05And it continues upstairs onto the second floor, with partition
0:14:05 > 0:14:09walls missing, no ceilings and piles of rubble everywhere.
0:14:11 > 0:14:14The final floor in the property is the lower ground.
0:14:14 > 0:14:17And unfortunately it is more of the same.
0:14:18 > 0:14:22Now, the reason this property looks like a building site is that,
0:14:22 > 0:14:25well, it already has planning permission to
0:14:25 > 0:14:28convert into four one-bedroom flats.
0:14:28 > 0:14:32Now, that is one flat per floor, and work, as you can see,
0:14:32 > 0:14:34has already started.
0:14:34 > 0:14:37Now, each flat will have an open-plan kitchen,
0:14:37 > 0:14:41living room, one-bedroom and a shower room, so suddenly
0:14:41 > 0:14:44from developing one single property,
0:14:44 > 0:14:47you are now looking at four flats.
0:14:47 > 0:14:50Now that is a very tempting prospect.
0:14:50 > 0:14:52# That's a good idea
0:14:52 > 0:14:55# Yes, it is, babe
0:14:55 > 0:14:58# A real groovy idea... #
0:14:58 > 0:15:01Of course there will be higher costs involved in converting
0:15:01 > 0:15:04this into flats, rather than a three-bed house.
0:15:05 > 0:15:09Four flats means four kitchens and four shower rooms to install,
0:15:09 > 0:15:11and all manner of sound and fireproofing
0:15:11 > 0:15:15and installation needed to meet current building regs.
0:15:15 > 0:15:19Not to mention accessibility to all the flats.
0:15:19 > 0:15:21So do the sums stack up?
0:15:21 > 0:15:25Is converting this into four flats financially the best option?
0:15:27 > 0:15:31Remember, this property has a guide price of 180,000 to 185,000.
0:15:33 > 0:15:37Time now to ask a local estate agent for some facts and figures.
0:15:39 > 0:15:42I think the condition of the property, as it is, because it
0:15:42 > 0:15:45has been a bit neglected over the years, it is ideal for conversion.
0:15:45 > 0:15:48If it was in good condition, had been modernised, it would
0:15:48 > 0:15:50be ideal for a family because of the size of it,
0:15:50 > 0:15:53but there is a big demand for one-bedroom flats.
0:15:53 > 0:15:55If the house was left as a three-bedroom house,
0:15:55 > 0:16:00the rental markets would hold at probably 950 per calendar month.
0:16:00 > 0:16:01But as individual units,
0:16:01 > 0:16:05I'd say probably about 550 per calendar month.
0:16:05 > 0:16:10Wow, four flats at £550 per calendar month. It does seem that
0:16:10 > 0:16:14converting the property into flats is a bit of a no-brainer.
0:16:14 > 0:16:16But what about values?
0:16:16 > 0:16:19If it was renovated to a three-bedroom house, it is
0:16:19 > 0:16:22probably worth about £240,000, something like that.
0:16:22 > 0:16:25But if the whole place was converted into four one bed units,
0:16:25 > 0:16:27it would appeal to an investor.
0:16:27 > 0:16:31It is properly worth around £320,000, £330,000.
0:16:31 > 0:16:35So, this tall terrace will become four flats. After all, planning
0:16:35 > 0:16:38permission is already in place.
0:16:38 > 0:16:41The work to convert it has begun,
0:16:41 > 0:16:44so let's find out what happened at the auction.
0:16:46 > 0:16:49It is an end of terrace property with double glazing,
0:16:49 > 0:16:52and it is close to the high street, so lots going for it.
0:16:52 > 0:16:54Can I see, I don't know, 174 for it?
0:16:54 > 0:16:56170.
0:16:56 > 0:16:59Take 160, 160 I've got.
0:16:59 > 0:17:02160 I'm bid. 165 now do I see? 165 do I see?
0:17:02 > 0:17:04165 I have.
0:17:04 > 0:17:08170. 170. 172.
0:17:08 > 0:17:10172. 175.
0:17:10 > 0:17:12And with the bids slowly creeping up,
0:17:12 > 0:17:17we leave it there and rejoin with the bidding at £198,000.
0:17:17 > 0:17:21198 bid I have. 200 I'm looking for.
0:17:21 > 0:17:23At 198, then, for the first time...
0:17:23 > 0:17:25198 for the second time...
0:17:25 > 0:17:27Third and final time.
0:17:27 > 0:17:31200,000 I've got. 202, you will probably buy it with that.
0:17:31 > 0:17:33202, can I say? One more you going?
0:17:33 > 0:17:35At 202.
0:17:35 > 0:17:38At £202,000, then, for the first time...
0:17:38 > 0:17:40202 for the second.
0:17:40 > 0:17:43Third and final time at 202, you're not bidding, it is
0:17:43 > 0:17:45in the room at 202.
0:17:45 > 0:17:48Yours at 202, and it is J912. Thank you.
0:17:50 > 0:17:55That successful bid of 202,000 came from Dave, on the right here,
0:17:55 > 0:17:56and business partner Chris.
0:17:56 > 0:17:59# It takes two, baby
0:17:59 > 0:18:02# It takes two, baby
0:18:02 > 0:18:03# Me and you... #
0:18:05 > 0:18:08Regular viewers may recognise them, as they've appeared
0:18:08 > 0:18:11on the show before when they developed a property in Folkestone.
0:18:11 > 0:18:15And it is them who have started gutting this property in preparation
0:18:15 > 0:18:17for the renovation.
0:18:17 > 0:18:20Dave has a background in finance, and Chris is a carpenter.
0:18:20 > 0:18:23A perfect combo? We shall see.
0:18:23 > 0:18:26Guys, congratulations, we meet again.
0:18:26 > 0:18:29- Old friends now. - Nice to see you again.
0:18:29 > 0:18:32So what was it about this property that made you want to buy this,
0:18:32 > 0:18:34and how much research did you guys do?
0:18:34 > 0:18:37It was mainly because it already has planning.
0:18:37 > 0:18:39It is all ready for the conversion to the four flats, which is
0:18:39 > 0:18:41what we are trying to do.
0:18:41 > 0:18:45And we can walk straight in on the day of completion and start work.
0:18:45 > 0:18:48Because he's got planning, we had already pre-agreed with
0:18:48 > 0:18:53our high street lender that we could borrow a percentage of the finances.
0:18:53 > 0:18:55They will only lend on planning,
0:18:55 > 0:18:58so we had to put up 50% of the cash, and our very friendly bank
0:18:58 > 0:19:01manager very kindly stepped in and put the rest up.
0:19:01 > 0:19:04Is this something that you really need to get your teeth into?
0:19:04 > 0:19:07Because, as it stands at the moment, it is a bit of a dirty old
0:19:07 > 0:19:10place, and there is lots of dust flying around and brick dust.
0:19:10 > 0:19:13How are you going to be changing this and how quickly is it going to
0:19:13 > 0:19:16- take shape?- This will take us about three months.- OK.
0:19:16 > 0:19:18And you're not going to tweak the plans at all? I mean,
0:19:18 > 0:19:20you are going to work with what you've got.
0:19:20 > 0:19:23It is exactly what we need. It's cut into four one-bedroom flats.
0:19:23 > 0:19:26There's not much more, other than leaving it as a single house,
0:19:26 > 0:19:29that you can do with it, so it is ideal for what we need.
0:19:29 > 0:19:31But there's still quite a bit of work to do.
0:19:31 > 0:19:35I know you've got a couple of separate entrances to create, haven't you?
0:19:35 > 0:19:38There is another one coming into the first floor from the rear,
0:19:38 > 0:19:42so there is two front doors to the basement and the first floor,
0:19:42 > 0:19:46and then the two on the top use the original front doors for entrances.
0:19:46 > 0:19:50OK. I mean, that is going to be lovely, having another separate entrance at the back.
0:19:50 > 0:19:54And that garden, I think that is such a special walled garden.
0:19:54 > 0:19:57- It is not listed, this building, is it?- No, it's not.
0:19:57 > 0:19:58It's not in a conservation area.
0:19:58 > 0:20:02It's got none of the usual problems that come with buildings.
0:20:02 > 0:20:05There is no parking with it but because it is so close to the town,
0:20:05 > 0:20:07the high street and the station,
0:20:07 > 0:20:09there's no requirement for planning to have parking.
0:20:09 > 0:20:12And there is a large car park, if needed, out the back.
0:20:13 > 0:20:14So it looks like Dave
0:20:14 > 0:20:17and Chris have landed on their feet with this property.
0:20:17 > 0:20:21Not having to go through planning permission is not only a time
0:20:21 > 0:20:23saver but a money saver too.
0:20:23 > 0:20:26And what's more, they already have an agreement with a housing
0:20:26 > 0:20:29association through Kent County Council to rent all
0:20:29 > 0:20:33the properties over a five-year period once they're complete.
0:20:33 > 0:20:35Wow, they really are a bit of a dream team.
0:20:37 > 0:20:40Both of your heads together, I mean, this really is such a great
0:20:40 > 0:20:44business for you two together because you offer something so different.
0:20:44 > 0:20:47Yes, 100%. I mean, for me, when we go speak to the bank manager
0:20:47 > 0:20:51and we get a load of gobbledygook, I'm kind of all right with it.
0:20:51 > 0:20:54I've always been involved in the building side and I understand
0:20:54 > 0:20:58the building contracts, what needs to be done in the building itself.
0:20:58 > 0:21:02And on the financial side, yes, I understand it,
0:21:02 > 0:21:06but I don't understand it all. But it is nice to have somebody who does.
0:21:06 > 0:21:08So it is obvious, great teamwork.
0:21:08 > 0:21:11Let's now talk about the properties, the flats, what they're going to
0:21:11 > 0:21:15look like and what they are going to have, what's the finish going to be like.
0:21:15 > 0:21:19- Magnificent.- Finishes... Shower rooms rather than bathrooms.
0:21:19 > 0:21:22There are single bedroom units.
0:21:22 > 0:21:25But they're going to be of a good quality.
0:21:25 > 0:21:28We never do anything that isn't, because we work on the principle that
0:21:28 > 0:21:32if it is nice when they take it over, hopefully they will look after it.
0:21:32 > 0:21:34And what are they going to be like internally?
0:21:34 > 0:21:38Internally, they've got quite a large kitchen, fitted kitchen in...
0:21:38 > 0:21:41which, I think, on two of the floors, comes into the rear
0:21:41 > 0:21:44of the building, and the other two floors into the front.
0:21:44 > 0:21:46Bathrooms are all in the centres.
0:21:47 > 0:21:51The staircase, we are going to retain as it looks at the moment.
0:21:51 > 0:21:54- Because I think it is quite pleasant. - I love it, it is beautiful.
0:21:54 > 0:21:58You're the money man, tell me how much you're going to be spending.
0:21:58 > 0:22:00- I don't always tell him everything. - Do you not?
0:22:00 > 0:22:04- No, the budget is about 65, 65,000. - Yeah.
0:22:04 > 0:22:06To do all the work here?
0:22:06 > 0:22:09- Oh, I'm quite surprised at that. - Well...
0:22:09 > 0:22:12- it is quite a tight budget but...- Yes, I would say.
0:22:12 > 0:22:16So how much would they be worth, do you think, if you were to market them and sell them on?
0:22:16 > 0:22:20To market and sell them on in this area, we think about 70, £75,000.
0:22:20 > 0:22:23- But that's not what you're going to be doing?- No.
0:22:23 > 0:22:26Listen, it's been fantastic seeing you guys again, and I'm glad that
0:22:26 > 0:22:29your business really is up and running and you're doing really well,
0:22:29 > 0:22:32and I can't wait to see the outcome of this, so, congratulations.
0:22:32 > 0:22:34- Thank you.- Thanks.
0:22:34 > 0:22:36Well, David and Chris's partnership seems to be
0:22:36 > 0:22:38going from strength to strength.
0:22:38 > 0:22:42They are buying and doing up properties at such a rapid rate,
0:22:42 > 0:22:46and they've already got a client lined up to rent out these flats.
0:22:46 > 0:22:48But will it all go smoothly for them,
0:22:48 > 0:22:51or will there be problems ahead?
0:22:51 > 0:22:56You can find out how this dynamic duo get on later on in the programme.
0:22:57 > 0:23:00Still to come, in London, these developers took their time.
0:23:00 > 0:23:04Ten years later, I walked into Frank' office and said, "I'm going
0:23:04 > 0:23:07"to try and go and buy a place," and he was, "Let's do it."
0:23:08 > 0:23:10And it is time for us
0:23:10 > 0:23:13to check out how the four flats in Kent are coming along.
0:23:13 > 0:23:16They already are magnificent and they're not finished yet.
0:23:19 > 0:23:22MUSIC: No One Knows by Queens Of The Stone Age
0:23:22 > 0:23:25We're back in Ilkeston in Derbyshire now,
0:23:25 > 0:23:30where I was looking at this two-bed mid-terrace, guided at £48,000.
0:23:30 > 0:23:33It looked solid from the outside, but when I stepped inside,
0:23:33 > 0:23:36it had a few surprises.
0:23:36 > 0:23:39I've never seen anything like that before.
0:23:39 > 0:23:41Wow, that's like an under stairs cupboard,
0:23:41 > 0:23:44but you've got this little sort of serving hatch.
0:23:44 > 0:23:47Answers to what you think that's all about on a postcard
0:23:47 > 0:23:49to the show, please.
0:23:49 > 0:23:51# No-one knows... #
0:23:51 > 0:23:55Well, I guess that'll just have to stay a mystery, then.
0:23:55 > 0:23:57The quirky layout extended upstairs as well,
0:23:57 > 0:24:01where the bathroom was only accessible via one of the bedrooms.
0:24:01 > 0:24:04However, despite this, it seemed a solid enough house
0:24:04 > 0:24:06and had enough appeal to tempt Phil
0:24:06 > 0:24:11and Julia into paying £52,500 at auction.
0:24:11 > 0:24:14Phil was a landscape gardener by trade, but had begun to
0:24:14 > 0:24:19cultivate, ha-ha, a rental portfolio with one eye on the future.
0:24:19 > 0:24:22Before I come to meet you, I was 50 foot up a tree.
0:24:22 > 0:24:27Yeah. And I don't fancy doing that in another ten years' time.
0:24:27 > 0:24:30- This will be your pension pot, then, will it?- Yes. Definitely.
0:24:30 > 0:24:34# It's just a young man's game... #
0:24:38 > 0:24:41He had £7,000, a three month timescale
0:24:41 > 0:24:44and intended on completely gutting the place,
0:24:44 > 0:24:47including replastering and new central heating.
0:24:47 > 0:24:49He was going to do as much of the work as he could,
0:24:49 > 0:24:51so it would be hard going.
0:24:51 > 0:24:55Still, at least there was no landscape gardening to do.
0:24:57 > 0:25:00Just over four months later, we've returned to see if Phil
0:25:00 > 0:25:04and Julia have put in the hard work, and if it's paid off.
0:25:11 > 0:25:14What a difference! And I don't just like it
0:25:14 > 0:25:16because that hatch isn't there any more.
0:25:16 > 0:25:19The whole place has been painted and carpented in neutral shade,
0:25:19 > 0:25:22giving it a bright, modern feel.
0:25:22 > 0:25:26The new kitchen looks great too, but it has not just been cosmetic.
0:25:26 > 0:25:29They've also fitted a new central heating system and boiler,
0:25:29 > 0:25:33and Phil has sorted out some damp that was in the living area.
0:25:37 > 0:25:40The concrete and paving that was outside was all sloping
0:25:40 > 0:25:42towards the house.
0:25:42 > 0:25:45The bottom corner, where the patio doors now are, just used to
0:25:45 > 0:25:47sit in water which, over time,
0:25:47 > 0:25:50was just seeping through into the kitchen,
0:25:50 > 0:25:54causing the damp issue. So we have put drains in, you know,
0:25:54 > 0:25:57to take the water away from the actual brickwork.
0:25:57 > 0:26:00So that's the hatch gone and the damp disappeared.
0:26:00 > 0:26:02What about the bathroom door dilemma?
0:26:04 > 0:26:09This is the room where we put the second doorway into the bathroom.
0:26:09 > 0:26:13We didn't want to lose any space out of the second bedroom, so the
0:26:13 > 0:26:18easiest solution was to put a Jack and Jill door configuration, which
0:26:18 > 0:26:23means that both bedrooms have got access through into the bathroom.
0:26:23 > 0:26:26It's an inspired solution, and with the new bathroom suite,
0:26:26 > 0:26:28the whole floor looks great.
0:26:28 > 0:26:31But don't underestimate the work that went into do this.
0:26:31 > 0:26:35In order to fit the door, Phil had to remove a chimney breast and fit
0:26:35 > 0:26:41a steel support across the top, and he didn't employ builders to do it.
0:26:41 > 0:26:45Most of the work that we've done in here, all the demolition,
0:26:45 > 0:26:47the channelling out for the electrics,
0:26:47 > 0:26:49some of the plumbing work,
0:26:49 > 0:26:53you know, we did, me, my partner Julia. Both very hands-on people.
0:26:53 > 0:26:57I had a lot of help and support from family and friends.
0:26:57 > 0:27:01Chris, my mother-in-law, she's been rounds glossing everywhere.
0:27:01 > 0:27:04It is a job I hate and I get runs everywhere. Sarah and Craig.
0:27:04 > 0:27:07Craig is an accountant, so to actually see him
0:27:07 > 0:27:11doing some manual work was quite funny.
0:27:11 > 0:27:14Especially when he had been out on the beer the night before.
0:27:14 > 0:27:18Sam the plasterer, he came round and hung a few doors as well.
0:27:18 > 0:27:21# I'm tired of you trying to do what I do
0:27:21 > 0:27:23# You better do what I say... #
0:27:25 > 0:27:29Blimey, mother-in-law's glossing and plasterers hanging doors.
0:27:29 > 0:27:32Phil must have real powers of persuasion to go along with
0:27:32 > 0:27:34that work ethic of his.
0:27:34 > 0:27:38Sometimes it seems he can't help but get stuck in.
0:27:38 > 0:27:42Remember how he wasn't going to touch the garden? Well...
0:27:43 > 0:27:46Outside, not had a great deal to do,
0:27:46 > 0:27:50so laid some Indian paving that I got left over from a job.
0:27:50 > 0:27:54And just re-laid some of the three by two slabs to the top end
0:27:54 > 0:27:57and put a bit of slate down, just to add a bit of colour.
0:27:57 > 0:28:00Like all experts, he makes it sound so easy.
0:28:00 > 0:28:03Phil originally hoped to have the work completed
0:28:03 > 0:28:08in three months, but it has now been four, so why the delay?
0:28:08 > 0:28:10At the time I bought this property at auction,
0:28:10 > 0:28:12we also bought another one.
0:28:12 > 0:28:17We spent a bit longer doing the first house up, which has
0:28:17 > 0:28:21sort of impacted on that we are month later in finishing this one.
0:28:21 > 0:28:25Although we actually completed this in nine weeks, again,
0:28:25 > 0:28:29down to the support we've had from family and friends.
0:28:29 > 0:28:32It's been a great, you know, a great experience.
0:28:34 > 0:28:36Phil also went over on his budget.
0:28:36 > 0:28:41He had made an estimate of £7,000 with a £1,000 contingency,
0:28:41 > 0:28:44but ended up spending a total of £9,000,
0:28:44 > 0:28:48as he didn't take into account the time and cost of getting all
0:28:48 > 0:28:52his work checked according to local authority building regulations.
0:28:52 > 0:28:56That is why you should always have a contingency fund.
0:28:56 > 0:29:01So, he and Julia have now spent £9,000 on top of the £52,500
0:29:01 > 0:29:05they paid at auction. Are they still in line to make a profit?
0:29:05 > 0:29:09We've asked along two local estate agents to get their opinion.
0:29:09 > 0:29:12I think the property flows very well as you come inside,
0:29:12 > 0:29:16and it is fantastic how you've got the Jack and Jill
0:29:16 > 0:29:18doors into the bathroom from each bedroom.
0:29:18 > 0:29:22Since my last visit to the property, the house has changed dramatically.
0:29:22 > 0:29:25The quality of the fixtures and fittings is fantastic.
0:29:25 > 0:29:27Lovely bathroom, lovely kitchen.
0:29:27 > 0:29:31Lovely rear garden, done a really good job with the very small space.
0:29:31 > 0:29:34Well, the estate agents sound very impressed,
0:29:34 > 0:29:38so let's get those all-important valuations.
0:29:38 > 0:29:43I would recommend an asking price between £75,000 and £80,000.
0:29:43 > 0:29:44In the current market,
0:29:44 > 0:29:48I would estimate the property to be worth £75,000 to £80,000.
0:29:48 > 0:29:51If I was to place this property on the rental market,
0:29:51 > 0:29:56I would recommend an asking price o £450 to £475 per calendar month.
0:29:56 > 0:29:58The rental valuation on this property,
0:29:58 > 0:30:03in the current market, would be £425 to £450 per calendar month.
0:30:03 > 0:30:06Having spent a total of £61,500,
0:30:06 > 0:30:10that top sales figure would give Phil and Julia a pre-tax
0:30:10 > 0:30:15profit of 18,500 grand, but this was always to become part
0:30:15 > 0:30:19of their rental portfolio, so what does Phil think of those valuations?
0:30:21 > 0:30:24The high one's about right,
0:30:24 > 0:30:28we have already rented the property at £475 a month.
0:30:28 > 0:30:32Due to the spec and everything. The client is more than happy.
0:30:32 > 0:30:36Well, Phil always maintained putting a higher spec would mean he
0:30:36 > 0:30:40would be more likely to get a better rent, and he's been proven right.
0:30:40 > 0:30:44That rent will give him and Julia a yield of over 9%.
0:30:44 > 0:30:47That will certainly help towards his retirement.
0:30:47 > 0:30:52So does he have any advice for others thinking of taking on a development?
0:30:52 > 0:30:54Best advice I can give to anyone who is
0:30:54 > 0:30:59thinking of taking on a project like this, do be prepared, long hours.
0:30:59 > 0:31:02We were here to 12.30 last night.
0:31:02 > 0:31:05I think Julia is ready for the holiday that we are going on.
0:31:11 > 0:31:13This is South Norwood in the south-east of London,
0:31:13 > 0:31:17in the borough of Croydon. It's popular with the city professionals
0:31:17 > 0:31:19because of its excellent transport links, with families
0:31:19 > 0:31:23because of its parks and good housing, and if you're
0:31:23 > 0:31:27a Crystal Palace fan, then Selhurst Park is just on your doorstep.
0:31:27 > 0:31:28# Glad all over
0:31:28 > 0:31:32# Baby, I'm glad all over
0:31:32 > 0:31:35# So glad you're mine... #
0:31:37 > 0:31:41Conveniently located just a short walk away from Norwood Junction
0:31:41 > 0:31:44station, this ground floor studio flat I'm here to see had
0:31:44 > 0:31:46a guide price of £80,000.
0:31:46 > 0:31:50Now, it looks like somebody has already started clearing out.
0:31:50 > 0:31:52I'm going to take a look.
0:31:57 > 0:31:59Nice bit of space here in this studio flat,
0:31:59 > 0:32:01I wasn't expecting it to be so spacey.
0:32:01 > 0:32:05OK, we've got a bathroom through there. And a big space for a kitchen.
0:32:05 > 0:32:10There's a sink there on the floor, I think they've got to start from scratch there.
0:32:10 > 0:32:11But a nice big space for a kitchen.
0:32:11 > 0:32:15Into the lounge, which, again, lovely high ceilings, some
0:32:15 > 0:32:18of the character features around the edge and around the light as well.
0:32:18 > 0:32:22And an old-fashioned fireplace, which could look really pretty
0:32:22 > 0:32:24if you could re-store that.
0:32:24 > 0:32:27Obviously somebody has started work already, or intend to.
0:32:27 > 0:32:31And they've got central heating as well, so I'm impressed so far, very impressed.
0:32:31 > 0:32:35Oh, yes, and the skirting boards, I do like high skirting boards as well.
0:32:35 > 0:32:36Let's explore more.
0:32:39 > 0:32:43This is quite spacious for a studio flat. I am wondering that...
0:32:43 > 0:32:45I knew that was going to be a false wall.
0:32:45 > 0:32:47Now the bath is on the other side of that,
0:32:47 > 0:32:50so you could actually knock that through, take your bath out,
0:32:50 > 0:32:54because it is possibly taking up too much space in this studio flat.
0:32:54 > 0:32:56Just have a shower, a toilet and sink.
0:32:56 > 0:32:59You could possibly turn this into a one bed.
0:32:59 > 0:33:01Not too sure, personal preference.
0:33:01 > 0:33:03But what I do know, that's the communal garden
0:33:03 > 0:33:07and there is no access to it, so what you would have to do,
0:33:07 > 0:33:10and what I would suggest, is knock this window out
0:33:10 > 0:33:13and put yourself some doors in there, or A door, so you can get
0:33:13 > 0:33:18through, summer evening, have a nice pint of ale...sat with Dion Dublin
0:33:18 > 0:33:21# Bring us in good ale Bring us in good ale
0:33:21 > 0:33:26# For our blessed Lady's sake Bring us in good ale... #
0:33:26 > 0:33:29But before any beer, you'll need to get a skip and a big shovel.
0:33:31 > 0:33:34Fitting a new door, giving direct access to the communal garden,
0:33:34 > 0:33:37would definitely add value to this flat.
0:33:37 > 0:33:39And if it's a profit you're looking to make,
0:33:39 > 0:33:41creating a separate bedroom is a way to do it.
0:33:41 > 0:33:45But this is a leasehold property and you'll need to get consent from
0:33:45 > 0:33:49the freeholder for any structural changes before you get started.
0:33:49 > 0:33:53Time to find out what a local estate agent thinks of this flat
0:33:53 > 0:33:55and all its options.
0:33:55 > 0:33:57It is quite a good size studio flat.
0:33:57 > 0:34:01You have got a really large front room,
0:34:01 > 0:34:05which you could turn into an open-plan lounge and kitchen.
0:34:05 > 0:34:10And the... What would have been the kitchen at one stage could be
0:34:10 > 0:34:12turned into the bedroom.
0:34:13 > 0:34:17Refurbishment wise, it will need a full redecorate throughout,
0:34:17 > 0:34:20maybe a bit of plastering, certainly a new kitchen
0:34:20 > 0:34:23and a new bathroom, and flooring throughout.
0:34:25 > 0:34:27Let's compare prices then.
0:34:27 > 0:34:31What about resale for the flat as a studio and as a one bedroom?
0:34:32 > 0:34:34Once renovated as a studio flat,
0:34:34 > 0:34:37this property could sell for around the £140,000 mark.
0:34:37 > 0:34:40As a one-bedroom, once renovated, this property could sell
0:34:40 > 0:34:45for in the region of £170,000 to £175,000.
0:34:46 > 0:34:51So creating a dedicated bedroom could add £35,000 of value.
0:34:51 > 0:34:54But what would the effect on rentals be?
0:34:55 > 0:34:58As a studio flat, this property could rent
0:34:58 > 0:35:01for around the £700 per calendar month mark.
0:35:01 > 0:35:04As a one-bedroom flat, with access to a communal garden, this property
0:35:04 > 0:35:10could rent for the £850 to £900 per calendar month mark.
0:35:10 > 0:35:13Yes, it does need a bit of a face-lift, but if you can get
0:35:13 > 0:35:17all that work done it could be a lovely studio flat or even a one-bed.
0:35:17 > 0:35:21Sort the access out to the communal garden as well and you could be onto a winner.
0:35:21 > 0:35:24Let's see who's seen the potential when it went under the hammer.
0:35:24 > 0:35:27And move on now to Lot 152.
0:35:27 > 0:35:30A ground floor flat in need of modernisation.
0:35:30 > 0:35:32100,000 anywhere?
0:35:32 > 0:35:34If not, you tell me.
0:35:34 > 0:35:35Looking for 100,000.
0:35:35 > 0:35:37What about 80, then? Try and help.
0:35:37 > 0:35:39Thank you, 80 I've got.
0:35:39 > 0:35:4181. 82.
0:35:41 > 0:35:4383.
0:35:43 > 0:35:45Try and get you something today. 83.
0:35:45 > 0:35:4884. 85.
0:35:48 > 0:35:53Well, after that sluggish start, the auction kicked into life,
0:35:53 > 0:35:56with several people putting in bids.
0:35:56 > 0:35:59We rejoin the bidding at £117,000.
0:35:59 > 0:36:01117.
0:36:01 > 0:36:03118.
0:36:03 > 0:36:05119.
0:36:05 > 0:36:08It's £119,000.
0:36:08 > 0:36:11Set against the gentleman standing up at the back on my left.
0:36:11 > 0:36:13Anybody else for Lot 152?
0:36:13 > 0:36:16If not, 119 for the first,
0:36:16 > 0:36:18119 for the second,
0:36:18 > 0:36:19120.
0:36:19 > 0:36:20121.
0:36:20 > 0:36:22122.
0:36:24 > 0:36:26123.
0:36:26 > 0:36:28124.
0:36:28 > 0:36:30Go through it again.
0:36:30 > 0:36:31123 for the first.
0:36:31 > 0:36:33123 for the second.
0:36:33 > 0:36:35123 for the third and final time.
0:36:35 > 0:36:37We all done?
0:36:37 > 0:36:39Sold, 123.
0:36:42 > 0:36:44It was a fiercely contended battle,
0:36:44 > 0:36:49but the successful bid of £123,000 came from old friends Frank and Roy.
0:36:49 > 0:36:54I met them back at the property to find out their plans.
0:36:54 > 0:36:57- Frank, nice to meet you.- Hi. - Same with you, Roy.- How you doing?
0:36:57 > 0:36:59- Congratulations.- Thank you.
0:36:59 > 0:37:02Tell us about the auction. What was that experience like?
0:37:02 > 0:37:05It's thrilling, exciting. It was our very first auction.
0:37:05 > 0:37:08We decided to go along after watching a programme for
0:37:08 > 0:37:10so many years, we thought, "Let's give it a go.
0:37:10 > 0:37:14"Let's see if we can buy our own property." And, yeah, it's exciting.
0:37:14 > 0:37:17- We were there for the whole day, weren't we?- For the whole day, we was.
0:37:17 > 0:37:19We started many, many years ago because Frank
0:37:19 > 0:37:23and myself work together, and ten years ago we actually said,
0:37:23 > 0:37:25"Shall we go into the housing business?"
0:37:25 > 0:37:28Which we did and we went our separate ways, we didn't do it together.
0:37:28 > 0:37:31Ten years later, I walked into Frank's office and said,
0:37:31 > 0:37:35"Look, I'm going to try and go and buy a place," and he was, "Let's do it."
0:37:35 > 0:37:39We just took it from there and just went to the auction, and that was very exciting, actually.
0:37:39 > 0:37:42It got to £113,000, £114,000 and I thought,
0:37:42 > 0:37:43"That's far enough for me."
0:37:43 > 0:37:46Frank said that's not quite far enough for him.
0:37:46 > 0:37:49No, what happened was we had a budget,
0:37:49 > 0:37:54the budget was £115,000, and the bidding started going up
0:37:54 > 0:37:57and it was going up and we were always like, "Yep, yep, yep."
0:37:57 > 0:37:59And then it stopped at about 115 and I was like,
0:37:59 > 0:38:01"OK, we're at our budget now."
0:38:01 > 0:38:04And I think Roy realised that inside because I could see his body
0:38:04 > 0:38:05tensing and he was like...
0:38:05 > 0:38:08And I was like, "No, Roy, we need to go more."
0:38:08 > 0:38:10And I was doing the maths in my head and I'm thinking,
0:38:10 > 0:38:13- "Yes, we do want to carry on." - A little bit of a shock for me.
0:38:13 > 0:38:15Roy's kind of sitting back like, "Why are you carrying on?"
0:38:15 > 0:38:18So we're doing, we're doing it, and the auctioneer goes,
0:38:18 > 0:38:20"OK, going once, going twice,"
0:38:20 > 0:38:22and the guy comes back in again!
0:38:22 > 0:38:25So in the end it got to 123,000.
0:38:25 > 0:38:26And we took it.
0:38:26 > 0:38:29These guys really are excited about their purchase.
0:38:29 > 0:38:33And after a wait of ten years, who can blame them?
0:38:33 > 0:38:35# Ten years are gone
0:38:35 > 0:38:39# Part of ten years from today...#
0:38:39 > 0:38:43So the decade long dream has finally happened for the guys.
0:38:44 > 0:38:47Both of them work as a managers in the bus industry and hope this
0:38:47 > 0:38:52property is a first stop in new careers and not the end of the route.
0:38:52 > 0:38:54So what are they planning here?
0:38:56 > 0:38:57It is a studio flat
0:38:57 > 0:39:00and we want to actually maybe think about turning it into a
0:39:00 > 0:39:03one-bedroom, try and get a bit more for your money for the property.
0:39:03 > 0:39:06So how are you going to do that? How are you going to change it into a one-bedroom?
0:39:06 > 0:39:09- What are you going to do to change it?- We've changed mind about...
0:39:09 > 0:39:11- Four times.- Yeah, about four times we've changed our mind.
0:39:11 > 0:39:15Have you come to a final decision yet? Is it still milling about?
0:39:15 > 0:39:17It is going to be now, from what I believe...
0:39:17 > 0:39:21I think today we realised that this is the way we want to go.
0:39:21 > 0:39:25So this is going to stay as it is, just going to bring it up to a
0:39:25 > 0:39:28high spec, the kitchen is going to be moved,
0:39:28 > 0:39:31the bedroom's going to be turned into a bedroom en-suite
0:39:31 > 0:39:33and the kitchen is going to be separate.
0:39:33 > 0:39:35So we're going to have this as the living area,
0:39:35 > 0:39:37then we're going to have a bedroom, one-bed,
0:39:37 > 0:39:41and the kitchen separate, bedroom's going to have the en suite.
0:39:41 > 0:39:45Well, it seems for Frank and Roy the choices here were like buses.
0:39:45 > 0:39:49They waited ten years and then four came along at the same time.
0:39:49 > 0:39:51But they're both onboard now.
0:39:51 > 0:39:54The main plan of getting rid of this wall
0:39:54 > 0:39:57and reworking the space makes sense to me.
0:39:57 > 0:39:59But how will they create garden access?
0:39:59 > 0:40:02That's something that we have been racking our brains over.
0:40:02 > 0:40:05The only access is round the back to get to the garden,
0:40:05 > 0:40:09so we were thinking about knocking down the window that's
0:40:09 > 0:40:13already in a pretty bad state and maybe putting doors there.
0:40:13 > 0:40:16Door there leading to the outside garden, and we have good access
0:40:16 > 0:40:19direct to the garden, without any problems.
0:40:19 > 0:40:23Now, tell us about how much you're hoping this is going to cost you
0:40:23 > 0:40:25in regards to budget.
0:40:25 > 0:40:27Well...
0:40:27 > 0:40:31Our budget has gone from, we started out around 8,000,
0:40:31 > 0:40:35we believe it's going to be costing anything between 10,000 and 15,000 now,
0:40:35 > 0:40:38we're hoping that we don't go over that.
0:40:38 > 0:40:41How long do you hope all this work's going to take?
0:40:41 > 0:40:44Well, I think we were looking in the region of six weeks,
0:40:44 > 0:40:46that's what we were hoping for.
0:40:46 > 0:40:49We still need to get hold of the landlord because there's a few
0:40:49 > 0:40:52- issues we need to sort out with the electrics and the...- Splitting.
0:40:52 > 0:40:55The splitting of the electrics, so we need to sort that out.
0:40:55 > 0:40:57But we're looking at six weeks, hopefully, to be in,
0:40:57 > 0:40:59getting everything and come out.
0:40:59 > 0:41:04It could go over, and being the first one it's bound to maybe
0:41:04 > 0:41:08trickle over as we're learning at the same time.
0:41:08 > 0:41:11It's always good not to rush into things when you make mistakes,
0:41:11 > 0:41:13and then think it through. As you've done already.
0:41:13 > 0:41:15But I think you're right to do so, try
0:41:15 > 0:41:19and get yourself a ceiling of time and a ceiling on your budget, and try
0:41:19 > 0:41:22not to go anywhere near the top of that ceiling, if you can help it.
0:41:22 > 0:41:25Indeed. And that's going to be my job, to try and keep it low.
0:41:25 > 0:41:27We need to make the profit.
0:41:27 > 0:41:29I think we've been talking about it for so many years
0:41:29 > 0:41:31because we know we actually think alike
0:41:31 > 0:41:35- and it's always good to have a business partner that... - You can bounce off.
0:41:35 > 0:41:38You can bounce off and, you know, you work together very well
0:41:38 > 0:41:41and you can trust each other because trust plays a big part,
0:41:41 > 0:41:43especially when you're dealing with so much funds.
0:41:43 > 0:41:45When you have to leave somebody to do something for you,
0:41:45 > 0:41:49you've got to know it's going to be done properly, as you'd want it done as a partnership.
0:41:49 > 0:41:52- And that's what I can feel from you two as well.- Yeah, most definitely.
0:41:52 > 0:41:54You seem happy. You seem happy, boys.
0:41:54 > 0:41:56We're happy boys, we're happy boys.
0:41:56 > 0:42:00I mean, we're doing this, we've got our wives backing us,
0:42:00 > 0:42:04which plays a big part as well, so, yeah, I believe it's going to
0:42:04 > 0:42:07be a great venture and there's going to be some good things coming forward.
0:42:07 > 0:42:09I believe the same. I love the enthusiasm.
0:42:09 > 0:42:12- Well, good luck. I hope it works out, I really do.- Thanks, Dion, cheers.
0:42:12 > 0:42:15- Good luck to you, boys.- Thank you very much.- You'll make it work.
0:42:15 > 0:42:17- Absolutely.- Indeed we will.
0:42:17 > 0:42:21This venture has been ten years in the making for Roy and Frank,
0:42:21 > 0:42:23but they're finally here with their first property.
0:42:23 > 0:42:26Now, they have changed their minds three or four times,
0:42:26 > 0:42:29are they going to change it again? We'll have to wait and see.
0:42:29 > 0:42:32But the enthusiasm that they've given me is incredible.
0:42:32 > 0:42:35And if it's anything to go by, they will definitely be successful.
0:42:35 > 0:42:38You can find out how they get on later on in the programme.
0:42:40 > 0:42:44- We've seen how one project turned out.- But what about the other two?
0:42:44 > 0:42:46Yes, have they had time to get them sorted?
0:42:46 > 0:42:49There is only one way to find out. Let's take a look.
0:42:49 > 0:42:53Back to Sittingbourne in Kent now, where I looked at this end terrace
0:42:53 > 0:42:58with a guide price of 180,000 to 185,000.
0:42:58 > 0:43:00It originally had three bedrooms.
0:43:00 > 0:43:02And why do I say originally?
0:43:02 > 0:43:04Because inside it looked like this.
0:43:04 > 0:43:10Yes, the interior had almost been competently ripped out, as planning
0:43:10 > 0:43:13had been passed and work had begun on turning this
0:43:13 > 0:43:15into four one-bed flats.
0:43:15 > 0:43:19# Even though it's complicated
0:43:19 > 0:43:24# We've got time to start again...#
0:43:24 > 0:43:27It would be a complicated, expensive job, but the complete
0:43:27 > 0:43:31redesign and break-up of this house could yield a massive profit.
0:43:31 > 0:43:35And that's certainly what experienced developing partners Chris and Dave
0:43:35 > 0:43:40hoped when they bought the property at auction for £202,000.
0:43:40 > 0:43:41They had big plans.
0:43:42 > 0:43:45- What's the finish going to be like? - Magnificent.
0:43:45 > 0:43:47We work on the principle that if it's nice
0:43:47 > 0:43:50when they take it over, hopefully they'll look after it.
0:43:50 > 0:43:53# Now let me blow your mind...#
0:43:53 > 0:43:57They may well want to create flats that will blow our mind,
0:43:57 > 0:44:00but the pair had a tight budget of just 65,000.
0:44:00 > 0:44:03They've a lot of experience, as Chris is a carpenter
0:44:03 > 0:44:07and Dave used to work in finance, and they'd already struck a deal
0:44:07 > 0:44:10to lease the finished flats to a local housing association.
0:44:10 > 0:44:14Could they complete the development and come in on budget?
0:44:17 > 0:44:21Four months later, and we returned to find out.
0:44:21 > 0:44:25MUSIC: Rock And Roll by Led Zeppelin
0:44:30 > 0:44:33I think it's fair to say the change is staggering.
0:44:33 > 0:44:36Let's hear the full story from Dave and Chris.
0:44:38 > 0:44:40So we've got a flat per level.
0:44:40 > 0:44:46There's a bedroom at the front, there's a kitchen-living room
0:44:46 > 0:44:49at the back, with a bathroom in the middle of the flats.
0:44:49 > 0:44:53We've dry lined the entire building, it's got insulation in.
0:44:53 > 0:44:56We put firebreaks between the ceilings
0:44:56 > 0:45:00and floors of all the flats and replaced everything,
0:45:00 > 0:45:02rewired, plumbing, everything has been replaced.
0:45:02 > 0:45:05Chris and Dave also amended the plans slightly to create
0:45:05 > 0:45:10a staircase that connects the front door with the ground, first and second floor flats,
0:45:10 > 0:45:14and giving the basement flat its own entrance at the rear.
0:45:14 > 0:45:17They're looking absolutely great.
0:45:17 > 0:45:20Though some, such as the top floor here, are closer to completion,
0:45:20 > 0:45:24than, say, the basement flat. What's still to be done?
0:45:24 > 0:45:27Well, they're nearly completed, we've got decoration going down
0:45:27 > 0:45:31on the fourth, we've got carpets already down in two of them.
0:45:31 > 0:45:33But we're not going too fast at it now because we're
0:45:33 > 0:45:37waiting for the water board to come in and fit the water main in,
0:45:37 > 0:45:40so then we can liven up all the plumbing and find out if it leaks.
0:45:40 > 0:45:43The last thing you want is everything to be sealed up
0:45:43 > 0:45:45and then discover you've got a leak.
0:45:45 > 0:45:48Decisions like that come from having plenty of experience
0:45:48 > 0:45:51in the property game, and is exactly the kind of thing
0:45:51 > 0:45:54a good project manager should be thinking about.
0:45:54 > 0:45:58Does Dave still think these flats will be magnificent?
0:45:58 > 0:46:01They already are magnificent and they're not finished yet.
0:46:01 > 0:46:03Who needs modesty, eh, Dave?
0:46:03 > 0:46:05In fairness, I do agree.
0:46:05 > 0:46:07I think they look fantastic.
0:46:07 > 0:46:10So how did the pair decide to fit out their flats?
0:46:10 > 0:46:14As far as choosing kitchens and decor and suchlike, we try and
0:46:14 > 0:46:17stick to a standard template - all of the flats we've done in the
0:46:17 > 0:46:20last year have got the same kitchens, they're all white,
0:46:20 > 0:46:24they've all got very similar doors, and we try and stay with
0:46:24 > 0:46:26a known and tried method.
0:46:26 > 0:46:29It seems to work and we get the right prices.
0:46:29 > 0:46:32A very logical approach for a developer to take.
0:46:32 > 0:46:35But I've noticed some flooring that doesn't quite fit the brief.
0:46:35 > 0:46:37What's all that about?
0:46:37 > 0:46:41The green laminate floor, why I chose that, it was basically because of price.
0:46:41 > 0:46:44The green laminate flooring is pretty grim.
0:46:44 > 0:46:46It's no different to anything else.
0:46:46 > 0:46:48If it's there at the right price, then we'll buy it.
0:46:48 > 0:46:50Chris likes it.
0:46:50 > 0:46:53I think he's got it through his own house, so that's important.
0:46:53 > 0:46:55Dave loves it. I think he's got it in his house,
0:46:55 > 0:46:57I haven't got any of it in mine.
0:46:57 > 0:47:00Yes, yes, yes. Come on now, stop the bickering.
0:47:00 > 0:47:02It's clearly a profitable partnership,
0:47:02 > 0:47:06but it sounds like they enjoy themselves too.
0:47:06 > 0:47:08Working with Dave, it's been great.
0:47:08 > 0:47:11You know, we tend to make it quite fun.
0:47:11 > 0:47:14We've been working together for two years now, we've got
0:47:14 > 0:47:17seven projects on the go in different states of development.
0:47:17 > 0:47:21Ultimately, it's all about getting the job done, getting it out to
0:47:21 > 0:47:24housing or selling the land or doing whatever, you know what I mean?
0:47:24 > 0:47:28We're here to make some cash, but also it can be fun the same time.
0:47:28 > 0:47:32Well, property development is undoubtedly hard work,
0:47:32 > 0:47:35but nobody said it needn't be fun.
0:47:35 > 0:47:39Chris and Dave bought the property for 202,000
0:47:39 > 0:47:44and have a projected spend of £85,000 to complete the project.
0:47:44 > 0:47:47This will be 20 grand more than their original budget.
0:47:48 > 0:47:51Chris said the additional cost was on the stairway amendment
0:47:51 > 0:47:55and the cost of connecting new amenities to the flats.
0:47:55 > 0:47:59Splitting the house was always going to be the more expensive option,
0:47:59 > 0:48:02but we've asked along two local estate agents to see if all that
0:48:02 > 0:48:04spend has been worth it.
0:48:06 > 0:48:09There's a lot of thought gone into the conversion of this,
0:48:09 > 0:48:12and they've used the space extremely well.
0:48:12 > 0:48:14You could have probably got three flats in there
0:48:14 > 0:48:18and it wouldn't have worked so well. But the four, because they're
0:48:18 > 0:48:21all individually over the four floors, works really, really well.
0:48:21 > 0:48:23So the standard of finish of the top floor flat has been done
0:48:23 > 0:48:25to a very high standard.
0:48:25 > 0:48:28I would expect that if the other flats are done to the same
0:48:28 > 0:48:32standard, then the property will look very good throughout.
0:48:32 > 0:48:38The estate agents gave a top sales value of 115,000 per unit,
0:48:38 > 0:48:43or up to 400,000 if they were to sell all four flats as one property.
0:48:43 > 0:48:48This could give them a pre-tax profit of anything between 113,000,
0:48:48 > 0:48:53all the way up to 173,000, depending on what they decided to do.
0:48:53 > 0:48:57However, Chris and Dave were always hoping to rent,
0:48:57 > 0:49:00so what are those rental valuations?
0:49:00 > 0:49:04Probably, because of the position and the condition of the flats,
0:49:04 > 0:49:07you're probably around £625 per calendar month.
0:49:07 > 0:49:10I'd expected each flat to achieve a figure
0:49:10 > 0:49:13in the region of £595 per calendar month.
0:49:13 > 0:49:17Having spent a total of £287,000,
0:49:17 > 0:49:23this upper value would give Chris and Dave a total yield of over 10%.
0:49:23 > 0:49:26But that's assuming all the flats are filled.
0:49:26 > 0:49:29And let's not forget, that is a big assumption.
0:49:29 > 0:49:32It's one of the reasons they've stuck to their plan of letting
0:49:32 > 0:49:34the flats to the local housing association.
0:49:34 > 0:49:38Obviously, we've locked in 550 a month with the housing association for five years,
0:49:38 > 0:49:41so it's a guaranteed rent with no void period.
0:49:41 > 0:49:45So as soon as these are done we can have some viewings
0:49:45 > 0:49:47and we're very confident they're going to go.
0:49:47 > 0:49:50After the five years it means we get even more,
0:49:50 > 0:49:53so yeah, they're good. We're happy.
0:49:54 > 0:49:56As you should be, Chris.
0:49:56 > 0:50:00This was a big job, and it's been executed beautifully.
0:50:00 > 0:50:02So with this being such a success,
0:50:02 > 0:50:05how will they go about finding their next property?
0:50:05 > 0:50:10We have a criteria, all we do is we look for a pub in the local area,
0:50:10 > 0:50:13as soon as we find a pub, we then look for a project,
0:50:13 > 0:50:16and we just keep walking out until we find one and then we go from
0:50:16 > 0:50:18there. It works well every time.
0:50:24 > 0:50:26Back to South Norwood in London now.
0:50:26 > 0:50:30Where I earlier looked around a ground floor studio flat that had
0:50:30 > 0:50:34a very attractive guide price of £80,000.
0:50:35 > 0:50:37More spacious than expected
0:50:37 > 0:50:41and boasting some nice character features, this little property
0:50:41 > 0:50:45had a lot going for it, and the potential to be even better.
0:50:45 > 0:50:48Now, this is quite spacious for a studio flat,
0:50:48 > 0:50:50and I am wondering that...
0:50:50 > 0:50:53HOLLOW BANGING I knew that was going to be a false wall.
0:50:53 > 0:50:55Now, the bath is on the other side of that,
0:50:55 > 0:50:57so you could actually knock that through, take your bath out,
0:50:57 > 0:51:01cos it's possibly taking up too much space in this studio flat,
0:51:01 > 0:51:03just have a shower, a toilet and sink.
0:51:03 > 0:51:06You could possibly turn this into a one-bed.
0:51:06 > 0:51:09Not too sure, personal preference, but what I do know,
0:51:09 > 0:51:12that's the communal garden and there's no access to it.
0:51:12 > 0:51:15So what you would have to do, and what I would suggest,
0:51:15 > 0:51:18is knock this window out and put yourself some doors in there,
0:51:18 > 0:51:21or a door, so you can get through.
0:51:21 > 0:51:25Summer evening, have a nice pint of ale, sat with Dion Dublin.
0:51:26 > 0:51:29Proving very popular on auction day, the bidders battled it out
0:51:29 > 0:51:33and eventually it sold for £123,000.
0:51:33 > 0:51:35We all done?
0:51:35 > 0:51:37Sold, 123.
0:51:39 > 0:51:42The successful bidders on this occasion were friends
0:51:42 > 0:51:45Frank, on the right here, and Roy.
0:51:45 > 0:51:48And the idea to buy a property together had been a long time coming.
0:51:50 > 0:51:52I mean, we started many, many years ago because Frank
0:51:52 > 0:51:56and myself worked together, and ten years ago we actually said,
0:51:56 > 0:51:59"Should we go into the housing business?"
0:51:59 > 0:52:03Which we did and we went our separate ways, we didn't do it together.
0:52:03 > 0:52:06Ten years later, I walked into Frank's office and said,
0:52:06 > 0:52:09"Look, I'm going to try and go and buy a place," and he was, "Let's do it."
0:52:09 > 0:52:11With bags of enthusiasm,
0:52:11 > 0:52:14the two friends were eager to make up for lost time
0:52:14 > 0:52:18and had several ideas for making the most of the property they bought.
0:52:20 > 0:52:23It's now 11 weeks after we first saw Frank and Roy,
0:52:23 > 0:52:27and I can't wait to see if, after ten years of talking about it,
0:52:27 > 0:52:30they were right to get into property renovation together.
0:52:43 > 0:52:45Now that's a transformation.
0:52:45 > 0:52:48It's now a modern kitchen-diner,
0:52:48 > 0:52:50as Roy explains further.
0:52:52 > 0:52:57Right, so, if you remember, this was the bedroom and the living room,
0:52:57 > 0:53:01so we've taken up the carpet, we've put down wood flooring,
0:53:01 > 0:53:04we've brought the kitchen in from where it was and it's now,
0:53:04 > 0:53:07as you can see here, in the living room.
0:53:07 > 0:53:11And we've changed all the walls and made them white,
0:53:11 > 0:53:14easier to look at, and we've done that throughout the house.
0:53:14 > 0:53:16By moving a stud wall back,
0:53:16 > 0:53:20they've been able to create a bedroom where the kitchen once stood,
0:53:20 > 0:53:24and they've created garden access with this newly fitted door.
0:53:27 > 0:53:29When creating the bedroom,
0:53:29 > 0:53:32they had to lose the bath in favour of a smaller shower room, but
0:53:32 > 0:53:37in order to turn this from a studio to a one-bed flat, that's no great loss.
0:53:41 > 0:53:45Frank and Roy have done a great job in realising the full potential
0:53:45 > 0:53:49of this property, and now it really is a desirable one-bed flat.
0:53:53 > 0:53:56We're pretty happy with it because, to be honest, at first,
0:53:56 > 0:53:59I think me and Roy had a few decisions
0:53:59 > 0:54:02whether to leave it as it is or to change it around.
0:54:02 > 0:54:05First of all we were just going to leave it as a studio flat,
0:54:05 > 0:54:09but then we looked at the space and we thought if we rejig just
0:54:09 > 0:54:12a little bit, we can actually make it into a one-bedroom flat.
0:54:12 > 0:54:15And that's what we've done and we think the bedroom works.
0:54:15 > 0:54:18We definitely know that the front room works,
0:54:18 > 0:54:21and the bathroom, it is what it is.
0:54:21 > 0:54:24We also looked at what extra profit we could make
0:54:24 > 0:54:28if we moved it around and made it into a one-bedroom, rather than
0:54:28 > 0:54:33a studio, and I think we've pretty much managed to do that -
0:54:33 > 0:54:37the extra profit between what it could have been and what it is now.
0:54:37 > 0:54:39And the property came with a communal garden,
0:54:39 > 0:54:42but the problem that we had was how do you get to the garden?
0:54:42 > 0:54:45And there was only one access which really was to go outside the front
0:54:45 > 0:54:47and go all the way around the property.
0:54:47 > 0:54:51So what we did, we decided to get rid of the existing window
0:54:51 > 0:54:55that was in the kitchen and put a whole door there
0:54:55 > 0:54:58and steps that gave us access into the garden which, to be honest,
0:54:58 > 0:55:02it works pretty well and it just makes it very nice and easy.
0:55:02 > 0:55:04- Easy access.- Yeah.
0:55:04 > 0:55:07Frank and Roy really have got the most out of this property,
0:55:07 > 0:55:10and once the garden has been cleaned up a bit it will be a
0:55:10 > 0:55:13lovely bit of outside space.
0:55:15 > 0:55:18So, let's get to the nitty-gritty. Who's done what?
0:55:20 > 0:55:21Well, I'll let Roy answer that.
0:55:21 > 0:55:25I mean, he was here most of the time, actually.
0:55:25 > 0:55:27- Frank didn't do anything. - I did a bit.
0:55:27 > 0:55:30I did a bit of brickwork out the front. I did, honestly.
0:55:30 > 0:55:32And I did everything.
0:55:32 > 0:55:35No, I was here pretty much every day,
0:55:35 > 0:55:38making sure that everything that we wanted to be done
0:55:38 > 0:55:41and changes that was to be made was actually happening.
0:55:41 > 0:55:44But Frank was always on the end of the phone line,
0:55:44 > 0:55:47I was always telling him what was going on, so if he didn't agree...
0:55:47 > 0:55:50We kind of bounced it off each other quite a lot to make
0:55:50 > 0:55:53sure that we ended up with what you see now. It was quite good.
0:55:53 > 0:55:55But, yeah, I was here every day.
0:55:55 > 0:55:58Because of their decision to create a one-bedroom property,
0:55:58 > 0:56:03their budget of £10,000 to £15,000 went up to £18,500,
0:56:03 > 0:56:08meaning they've made a total investment here of £141,500.
0:56:08 > 0:56:12But with eagerness to sell, was this first property a good investment?
0:56:17 > 0:56:22We've asked along two local estate agents for their opinions.
0:56:22 > 0:56:25My first thoughts are that it's a very good conversion,
0:56:25 > 0:56:27it's in a lovely area, kept a lot of original features,
0:56:27 > 0:56:30and I think this will sell very well in today's market.
0:56:30 > 0:56:34I think it's a great idea to change this from a studio to a one-bedroom.
0:56:34 > 0:56:36It does have good space,
0:56:36 > 0:56:39the bedroom is maybe slightly on the small side,
0:56:39 > 0:56:42but nevertheless, it's really nicely laid out, and I think it works very well.
0:56:42 > 0:56:45Not having a bathroom is not a disadvantage, a lot of people
0:56:45 > 0:56:49get up these days and shower and out straightaway, so it should be OK.
0:56:49 > 0:56:52So, after ten years in the making, has Frank and Roy's
0:56:52 > 0:56:56first venture into property been a success?
0:56:56 > 0:56:59It's valuations time.
0:56:59 > 0:57:03I think for this flat I would market it at £190,000 to
0:57:03 > 0:57:06obtain offers over £185,000.
0:57:06 > 0:57:11This property would go on the market at approximately £190,000.
0:57:11 > 0:57:15Well, if Frank and Roy were to sell at £190,000,
0:57:15 > 0:57:20that would mean a pre-tax profit of 48 and a half grand,
0:57:20 > 0:57:23making this first venture into property development
0:57:23 > 0:57:26a bit of a success. Wouldn't you say?
0:57:26 > 0:57:30I'm happy with that because that is what we were actually looking for, 190.
0:57:30 > 0:57:34So very happy with that figure there, and it's good to hear, actually.
0:57:34 > 0:57:37That works for us. Definitely works for us.
0:57:37 > 0:57:39So finally, having completed a property
0:57:39 > 0:57:43and for it to be such a success, will Frank and Roy be continuing?
0:57:43 > 0:57:48Our long term aim is to not just purchase properties,
0:57:48 > 0:57:51but to have a good amount of properties
0:57:51 > 0:57:54- that we're going to be renting out. - Definitely.
0:57:54 > 0:57:57And at some point to be able to sit on a beach somewhere
0:57:57 > 0:58:00and live the good life.
0:58:00 > 0:58:03Yeah, OK.
0:58:05 > 0:58:07Well, that's about it for today's show.
0:58:07 > 0:58:10Join us next time for more property auction action.
0:58:10 > 0:58:12Yes, we'll be following the
0:58:12 > 0:58:15highs and lows of investing in bricks and mortar, so join us then.
0:58:15 > 0:58:17- See you then.- Bye-bye.- Goodbye.