0:00:02 > 0:00:04Welcome to the show. If you're looking to make a good investment,
0:00:04 > 0:00:06look at the property market.
0:00:06 > 0:00:08Are you aware that you don't need ALL the cash -
0:00:08 > 0:00:11you don't need to put all your money upfront when you buy at auction?
0:00:11 > 0:00:14That's right, you can have a deposit and you can still get a mortgage,
0:00:14 > 0:00:15but make sure you do thorough research
0:00:15 > 0:00:18before you buy your home under the hammer.
0:00:43 > 0:00:46If you want to start out in the property developing business,
0:00:46 > 0:00:48the trick is not to bite off more than you can chew.
0:00:48 > 0:00:50No, when you see a property,
0:00:50 > 0:00:52look for potential that others might have missed.
0:00:52 > 0:00:56OK, let's see what today's buyers invested in on today's show.
0:00:57 > 0:00:59In Barry, in Wales, a lot with three flats
0:00:59 > 0:01:04and one commercial unit has all the space you could want, but...
0:01:04 > 0:01:06It'd be nice to have a few floorboards!
0:01:07 > 0:01:08In Denham, Buckinghamshire,
0:01:08 > 0:01:11we revisit a pub where there's also plenty of space.
0:01:11 > 0:01:12Wow!
0:01:12 > 0:01:16And planning permission gives it potential to expand.
0:01:16 > 0:01:18And if it's potential you're after,
0:01:18 > 0:01:21there's lots of it at this house in Gainsborough, in Lincolnshire -
0:01:21 > 0:01:23lots of work too!
0:01:23 > 0:01:27Floorboards are everywhere, there's piping that's been sort of cut.
0:01:28 > 0:01:30All these properties were bought at auction.
0:01:30 > 0:01:32We'll find out who got them
0:01:32 > 0:01:35and how much they paid when these homes went under the hammer.
0:01:35 > 0:01:36Well done, madam.
0:01:41 > 0:01:45This is Barry Island in the south of Wales,
0:01:45 > 0:01:48a seaside town that has good links to Cardiff
0:01:48 > 0:01:52and is popular with both commuters and investors.
0:01:52 > 0:01:55In recent years, Barry has come under the spotlight
0:01:55 > 0:01:58with the popularity of comedy series Gavin and Stacey,
0:01:58 > 0:02:01much of which was filmed in and around the area.
0:02:03 > 0:02:07# Tell me tomorrow I'll wait by the window for you... #
0:02:10 > 0:02:13Well, not far from Barry Island is the property I'm here to see,
0:02:13 > 0:02:16and a really interesting one it is too.
0:02:16 > 0:02:20A mixed-use development - basically, a commercial unit downstairs
0:02:20 > 0:02:24and three flats ready for renovation.
0:02:24 > 0:02:29Guide price was £28,000 plus. Let's see what's occurring.
0:02:30 > 0:02:31Well, that's a nice surprise.
0:02:31 > 0:02:35The shop unit, actually, in pretty good condition.
0:02:35 > 0:02:38It looks like it's been relatively recently refurbished.
0:02:38 > 0:02:4235 square metres is this main shop area.
0:02:42 > 0:02:45It has got all new electrics, by the look of it.
0:02:45 > 0:02:49I mean, it's fairly - what's the word? - bland in lots of ways.
0:02:49 > 0:02:51It's white, it is, you know... as an office, ideal.
0:02:51 > 0:02:54It doesn't look like it's got any central heating,
0:02:54 > 0:02:55so you'd have to sort that out,
0:02:55 > 0:02:57but what you have got is, to the back here,
0:02:57 > 0:03:00this little, sort of...sink,
0:03:00 > 0:03:04sort of utility greenroom kind of area.
0:03:04 > 0:03:08As an office, it works perfectly, and that's just the beginning.
0:03:08 > 0:03:12# And said, "You ain't seen nothin' yet
0:03:12 > 0:03:16# "B-B-B-Baby, you just ain't seen n-n-nothin' yet
0:03:16 > 0:03:18# "Nothin' yet, you ain't been around..." #
0:03:18 > 0:03:21The toilet at the back of the commercial unit needs finishing,
0:03:21 > 0:03:25but aside from that, it's all looking in pretty good condition.
0:03:25 > 0:03:27Can the same be said for the flats upstairs?
0:03:32 > 0:03:34So, this is the first flat - it's a maisonette,
0:03:34 > 0:03:37so basically, on two levels.
0:03:37 > 0:03:38Downstairs, quite a lot of space.
0:03:38 > 0:03:41Up here, yes, definitely very spacious.
0:03:41 > 0:03:43Unfortunately, it looks like it has been subject
0:03:43 > 0:03:45to a bit of fire damage in the past.
0:03:45 > 0:03:47So, all the ceiling's gone.
0:03:47 > 0:03:51There's always a bit of a worry in terms of the structure,
0:03:51 > 0:03:54how badly has it been damaged by that fire?
0:03:54 > 0:03:56Um...
0:03:57 > 0:03:59It'd be nice to have a few floorboards!
0:03:59 > 0:04:03Apart from that, yeah, it's a good start. Let's carry on!
0:04:06 > 0:04:09Big difference from the commercial unit then,
0:04:09 > 0:04:11with everything needed to be done here.
0:04:11 > 0:04:15Plus, a thorough structural survey is essential.
0:04:15 > 0:04:19However, in the right hands, this could be a sound investment.
0:04:19 > 0:04:23But, yes, get some floorboards - sharpish!
0:04:23 > 0:04:26# I've got a feeling from the floorboards up
0:04:26 > 0:04:29# Call it a calling if you like that touch... #
0:04:29 > 0:04:34So, upstairs to the second flat and, before I get there,
0:04:34 > 0:04:36stairs up to the third flat.
0:04:36 > 0:04:39A bit like downstairs, it's in a bit of a state,
0:04:39 > 0:04:42but a good size, again.
0:04:42 > 0:04:44I mean, you are going to have to start from scratch.
0:04:44 > 0:04:45I mean, it's a case of, you know,
0:04:45 > 0:04:48stud partition walls need replastering,
0:04:48 > 0:04:50new roof, new electrics.
0:04:50 > 0:04:53I mean, moving through here - ha! - it is...
0:04:53 > 0:04:57You know, floorboards are up, and ceiling's down.
0:04:57 > 0:04:59But it doesn't smell damp.
0:04:59 > 0:05:02Um, it doesn't look like there's been any water ingress.
0:05:02 > 0:05:06Yes, there's work to be done, but a fantastic opportunity
0:05:06 > 0:05:10and, actually, although it looks like it's a mess,
0:05:10 > 0:05:14not that much...money to be spent
0:05:14 > 0:05:17for a potentially pretty big return on your investment.
0:05:22 > 0:05:24Yes, I know it's hard to believe,
0:05:24 > 0:05:26but this ISN'T a hugely expensive job.
0:05:26 > 0:05:29Especially when you see that the third flat
0:05:29 > 0:05:32is in much the same state as the other two.
0:05:32 > 0:05:36But the structure seems basically sound and issues such as damp,
0:05:36 > 0:05:39that can turn a property like this into a money pit,
0:05:39 > 0:05:41don't seem to be a problem.
0:05:41 > 0:05:44And think of what you get - two two-bed flats on the second
0:05:44 > 0:05:48and third floors and a two-bed maisonette at the back,
0:05:48 > 0:05:52accessed from a door beside the commercial space,
0:05:52 > 0:05:55all for a guide price of £28,000.
0:05:55 > 0:05:58Let's find out what a local estate agent thinks of it.
0:06:00 > 0:06:01My first impressions of the building,
0:06:01 > 0:06:04it is fantastic in size and stature.
0:06:04 > 0:06:08It needs central heating, electrics...
0:06:08 > 0:06:10Every wall needs to be boarded up, plastered...
0:06:10 > 0:06:12Flooring needs to be put down.
0:06:12 > 0:06:15I believe each apartment/maisonette
0:06:15 > 0:06:18needs to have £15,000 spent on them,
0:06:18 > 0:06:22and I think, the shop, £5,000 will bring it up to a standard
0:06:22 > 0:06:24that you can really go to work in.
0:06:24 > 0:06:29A total £50,000 renovation seems like a realistic figure to me too
0:06:29 > 0:06:32and the agent estimates all three flats would each rent
0:06:32 > 0:06:35for £495 per calendar month.
0:06:35 > 0:06:38So, if the flats were to be renovated for sale,
0:06:38 > 0:06:39what could they fetch?
0:06:41 > 0:06:44If the two apartments were placed on the open market for sale,
0:06:44 > 0:06:47I believe they would achieve £50,000.
0:06:47 > 0:06:50If the maisonette was placed on the open market for sale,
0:06:50 > 0:06:54I believe it would achieve between £45,000 and £50,000.
0:06:54 > 0:06:57Those numbers are sounding pretty good.
0:06:57 > 0:06:59What about the commercial unit?
0:06:59 > 0:07:01If the shop was put on the open market for sale,
0:07:01 > 0:07:04I believe it would go for in the region of £40,000.
0:07:04 > 0:07:07If the commercial unit was put on the open market for lease,
0:07:07 > 0:07:11I believe it would lend itself to £400 per calendar month.
0:07:12 > 0:07:15Well, this really is a fantastic opportunity -
0:07:15 > 0:07:18a mixed-use development, the commercial unit downstairs
0:07:18 > 0:07:21and those three flats ripe for redevelopment.
0:07:21 > 0:07:25Let's see who went for it when it went under the hammer.
0:07:25 > 0:07:27QUIET CHATTER
0:07:33 > 0:07:36A substantial...building,
0:07:36 > 0:07:39retail area and then other rooms up top.
0:07:39 > 0:07:42Guided at £28,000, start me, somebody, will you,
0:07:42 > 0:07:44someone here, 25, if you like?
0:07:44 > 0:07:46It's going to go for that and an awful lot more.
0:07:46 > 0:07:48Thank you, 25, I'll go to you there. At 25. And six, can I see?
0:07:48 > 0:07:5025, 26. 27?
0:07:50 > 0:07:5427, 28. 28, 29?
0:07:54 > 0:07:5529 and 30.
0:07:55 > 0:07:5830. 31. 31, 32.
0:07:58 > 0:08:0033 seated.
0:08:01 > 0:08:04Well, certainly a lot of interest in this lot,
0:08:04 > 0:08:09guided at £28,000, with multiple bids coming from around the room.
0:08:09 > 0:08:1036, thank you... 36.
0:08:10 > 0:08:14We rejoin the action with bidding at £44,000.
0:08:16 > 0:08:2144, 45, 46, 47...
0:08:21 > 0:08:2447, 48. 49, 50.
0:08:24 > 0:08:2850 standing. At 50, thank you. 50, 51.
0:08:28 > 0:08:3051, 52.
0:08:31 > 0:08:3452? At 51,000, seated then.
0:08:34 > 0:08:38For the 52... Thank you, 52. 53. 53.
0:08:38 > 0:08:45They keep coming, 53. 54. But you keep batting them away. 55. 56. 57.
0:08:45 > 0:08:4757, 58. 59?
0:08:47 > 0:08:5059? And 60. Still cheap, isn't it?
0:08:50 > 0:08:5660,000. 61. 61? 61, 62. 63. 63?
0:08:56 > 0:08:58Are you sure? You'll regret it tomorrow if you don't.
0:08:58 > 0:09:01I've got 63 against you, you've been there all the way.
0:09:01 > 0:09:05At 63,000, on my left-hand side... 64, new bidder. 65.
0:09:05 > 0:09:09At 65,000 then... For the first time...
0:09:09 > 0:09:1266, thank you. 66, 67? No.
0:09:12 > 0:09:17At 66 then, standing towards the back, for the first time...
0:09:17 > 0:09:21Second time... Shout if you want to change your mind... 67, new bidder.
0:09:21 > 0:09:2467. 68 behind, do you want to?
0:09:24 > 0:09:2768 behind, I've got 67 now with the lady.
0:09:27 > 0:09:32At £67,000 then for the first time... Second time...
0:09:32 > 0:09:35Third and last time, at £67,000...
0:09:35 > 0:09:39- AUCTIONEER BANGS GAVEL - Well done, madam, snucked in there at the end, your number please?
0:09:39 > 0:09:43Number 75, thanks very much, we'll have somebody down with you shortly.
0:09:48 > 0:09:53That well-timed solitary bid of £67,000 belonged to Mel.
0:09:53 > 0:09:57Originally from Cardiff, Mel has overseen the renovation
0:09:57 > 0:10:01of two previous properties and is eager to get cracking on her third.
0:10:02 > 0:10:05- Mel, great to meet you.- And you.
0:10:05 > 0:10:06- Congratulations.- Thank you.
0:10:06 > 0:10:08Tell me why you wanted to buy this place?
0:10:08 > 0:10:12Um, I thought it would be a good project to earn some cash,
0:10:12 > 0:10:13to be honest.
0:10:13 > 0:10:15Tell me what you want it for.
0:10:15 > 0:10:20Well, I've got an office downstairs and then the three flats,
0:10:20 > 0:10:24three two-bedroom flats, I'm hoping to either sell or rent.
0:10:24 > 0:10:27- Right, so what's the office for? - My solicitor's practice.
0:10:27 > 0:10:30- Oh, great, you're a solicitor?- Yes. - Fantastic, that's convenient.- Yeah.
0:10:30 > 0:10:31- Do you do conveyancing?- I do, yes.
0:10:31 > 0:10:32Very convenient then!
0:10:32 > 0:10:35- So, can you act for yourself on things like this?- Yes.
0:10:35 > 0:10:37- So, you actually did the whole deal? - I did.- Brilliant.
0:10:37 > 0:10:40Did you have to speak to yourself on the phone? Like...
0:10:40 > 0:10:42"When's it going to be done?" "Oh, I don't know, Tuesday, yeah?"
0:10:42 > 0:10:45Are you...property-type background?
0:10:45 > 0:10:49I have bought a couple of properties at auction previously.
0:10:49 > 0:10:53And this kind of project, daunting or what?
0:10:53 > 0:10:56It is a bit daunting, but obviously, I'm not going to be doing the work,
0:10:56 > 0:10:59I'll be getting builders in to do that.
0:10:59 > 0:11:00# She's the boss
0:11:01 > 0:11:03# She's the boss... #
0:11:03 > 0:11:06Mel is sticking with her skill set and who can fault that?
0:11:06 > 0:11:10And it does seem that she's definitely a mover and a shaker!
0:11:12 > 0:11:15- Tell me about downstairs then. A lot of work has been done.- Yes.
0:11:15 > 0:11:18- When did you complete on the property?- Today.
0:11:18 > 0:11:20- You've completed today?- Yes.
0:11:20 > 0:11:23- So, you've had a busy morning, then! - Yes!
0:11:23 > 0:11:26How come you've done the work downstairs?
0:11:26 > 0:11:29Well, the seller's allowed me to come in...
0:11:29 > 0:11:32and that's why I did the work, really.
0:11:32 > 0:11:36Of course, if you hadn't completed, or...for whatever reason
0:11:36 > 0:11:39it hadn't gone through, then you would have lost all the effort that
0:11:39 > 0:11:42you'd put in and the money you'd spent downstairs, wouldn't you?
0:11:42 > 0:11:45I would have, but I was pretty confident I'd be able to complete.
0:11:45 > 0:11:48This was an unusual situation.
0:11:48 > 0:11:51Mel arranged for the completion to be extended
0:11:51 > 0:11:53and did the work with the seller's cooperation.
0:11:53 > 0:11:56This meant that the unit was ready for business
0:11:56 > 0:11:58and her bank loan was conditional on this.
0:11:58 > 0:12:00It's handy being a solicitor
0:12:00 > 0:12:03to navigate your way through these things
0:12:03 > 0:12:04and Mel has a brother, Richard,
0:12:04 > 0:12:07who works in the building trade.
0:12:07 > 0:12:08He will navigate the project
0:12:08 > 0:12:11and oversee the contractors over a 12-week schedule.
0:12:12 > 0:12:15I mean, the property's in a pretty bad way,
0:12:15 > 0:12:18so, you know, it's literally everything, you know.
0:12:18 > 0:12:21The contractors are coming in and stripping it back
0:12:21 > 0:12:23and doing everything.
0:12:23 > 0:12:26So, what kind of money are you having to spend to get them sorted?
0:12:26 > 0:12:31Well, I spent, in total, 7,000 downstairs on the commercial unit...
0:12:31 > 0:12:34- Right.- ..which was in a pretty bad way previously.
0:12:34 > 0:12:38And I think it's going to cost between 40 and 50
0:12:38 > 0:12:39for the three flats.
0:12:39 > 0:12:43- Right, so about 15 per flat?- Yes.
0:12:43 > 0:12:46Yeah. And what do you think you might be able to sell them for?
0:12:46 > 0:12:48Well, I have been advised by local agents
0:12:48 > 0:12:50- that they should be worth about 70...- Wow!
0:12:50 > 0:12:52..each. Yeah.
0:12:52 > 0:12:57- So, potentially, about 100 grand-ish profit?- Well, I'd like to think so.
0:12:57 > 0:13:00- Yeah.- But, you know, I'd sell them cheaper than that to...- Yeah.
0:13:00 > 0:13:01..run away quickly.
0:13:01 > 0:13:03- Good. Well, congratulations. - Thank you.
0:13:03 > 0:13:04- Good luck with it.- Thank you.
0:13:04 > 0:13:07- Look forward to seeing how you get on.- Cheers. - HE LAUGHS
0:13:09 > 0:13:14So, Mel spotting the opportunity here, and on course to make
0:13:14 > 0:13:18a tidy little profit - completely hands-off.
0:13:18 > 0:13:20It's a good trick if you can do it! How will she get on?
0:13:20 > 0:13:23You can find out later in the show.
0:13:28 > 0:13:31Back in March 2013, I was in...
0:13:31 > 0:13:35So, where am I? Go on, have a look around. Where d'you reckon?
0:13:35 > 0:13:38A rural Kentish village? Wiltshire market town?
0:13:38 > 0:13:42Nope, this is Denham, two minutes from the M40,
0:13:42 > 0:13:4520 minutes by train into Marylebone station
0:13:45 > 0:13:48and two miles from the nearest Tube station.
0:13:48 > 0:13:52Yes, the London Underground - hard to believe, I know!
0:13:56 > 0:14:00Down in the area of New Denham was the property I was there to see.
0:14:00 > 0:14:05A charming English country pub, guided at 375,000.
0:14:05 > 0:14:08The outside was ideal, with a large car park,
0:14:08 > 0:14:10and the inside impressed me too.
0:14:14 > 0:14:17Wow! It's huge!
0:14:18 > 0:14:23With a vast bar area, plenty of space for enjoying a quiet pint
0:14:23 > 0:14:27and a good-sized commercial kitchen, it had everything.
0:14:29 > 0:14:32But unfortunately, last orders had been called
0:14:32 > 0:14:35and the pub wouldn't pour another drop.
0:14:36 > 0:14:39# Closing time
0:14:39 > 0:14:41# One last call for alcohol
0:14:41 > 0:14:45# So finish your whisky or beer... #
0:14:45 > 0:14:48But there was good news -
0:14:48 > 0:14:52planning permission for four flats had already been granted.
0:14:52 > 0:14:59# Every new beginning comes from some other beginning's end. #
0:15:03 > 0:15:06There's going to be two flats on the ground floor -
0:15:06 > 0:15:08one on the left and one on the right of the building.
0:15:08 > 0:15:10The bedrooms are going to be to the front.
0:15:10 > 0:15:12The kitchen, living room and open-plan space
0:15:12 > 0:15:13is all going to be at the back.
0:15:13 > 0:15:16Now, the same layout will be upstairs but a little bit smaller.
0:15:16 > 0:15:19And each flat has got its own little garden at the back,
0:15:19 > 0:15:24which is really nice, and the facade of the pub will remain unchanged.
0:15:26 > 0:15:28Wandering through the top floor,
0:15:28 > 0:15:31I could see there was plenty of space to play with
0:15:31 > 0:15:35and a local estate agent thought the high local demand for flats
0:15:35 > 0:15:39might generate a sales price of 210,000 per property.
0:15:39 > 0:15:41So, plenty of potential profit.
0:15:41 > 0:15:45Let's remind ourselves who fancied the challenge
0:15:45 > 0:15:46when it went to auction.
0:15:51 > 0:15:55Right, lot 31... is The Nine Stiles, Denham,
0:15:55 > 0:15:56a well-located former public house.
0:15:56 > 0:16:00You've got planning to convert to four two-bedroom flats.
0:16:00 > 0:16:03Uh, I'll start at 350, go upwards from there.
0:16:03 > 0:16:06I'm not going to go below 350. 355?
0:16:08 > 0:16:10355? 360.
0:16:10 > 0:16:13365. 370.
0:16:13 > 0:16:17375. 380. 385.
0:16:17 > 0:16:21385, 390. 395.
0:16:21 > 0:16:27400. 405. 405. 410.
0:16:27 > 0:16:31415. 415, right at the back.
0:16:31 > 0:16:36420. 425.
0:16:36 > 0:16:41Right at the back, 425. 425. 430...
0:16:41 > 0:16:43435 at the back.
0:16:43 > 0:16:47435, got you, just.
0:16:47 > 0:16:50440. 445.
0:16:50 > 0:16:52445, 450.
0:16:52 > 0:16:57455. 460. 465?
0:16:57 > 0:17:00Yes, 465?
0:17:01 > 0:17:04Yes/no? 460, with you...
0:17:04 > 0:17:08Anyone else? First time... Second time...
0:17:08 > 0:17:11Third and last time... If you are all done?
0:17:11 > 0:17:13- HE BANGS GAVEL - Sold, 460, to you, sir.
0:17:14 > 0:17:19Paying £85,000 over the guide price of 460 grand,
0:17:19 > 0:17:22Simrit was the pub's new owner.
0:17:22 > 0:17:25The London-based developer had renovated many times before,
0:17:25 > 0:17:27but not on this scale.
0:17:28 > 0:17:32So, were you sort of waiting for something like this to come along?
0:17:32 > 0:17:35Um, what I've been used to in the past is either getting
0:17:35 > 0:17:38commercial space above shops and making them into flats
0:17:38 > 0:17:40or just renovating derelict flats and houses.
0:17:40 > 0:17:42So something...
0:17:42 > 0:17:44Some construction work like this,
0:17:44 > 0:17:46this is kind of what I wanted to progress to anyway.
0:17:46 > 0:17:48So, tell me a little bit about yourself, your history.
0:17:48 > 0:17:51- So, I... I left university, I read law at university...- Yeah.
0:17:51 > 0:17:55..and then I worked in politics for several MPs,
0:17:55 > 0:17:58just doing casework and research for them.
0:17:58 > 0:17:59And then I left to...
0:17:59 > 0:18:02I bought my first property, did it up, sold it.
0:18:02 > 0:18:04I made some money, and then just carried on doing that.
0:18:06 > 0:18:08Well, as a former law student,
0:18:08 > 0:18:12Simrit knew a thing or two about - the bar!
0:18:12 > 0:18:15# I'm taking a bar exam
0:18:15 > 0:18:18# Under a neon sign... #
0:18:20 > 0:18:24But as for this bar, his plans for it did not chime with
0:18:24 > 0:18:28the approved planning permission that came with the auction lot.
0:18:30 > 0:18:32So, what are your plans for this site?
0:18:32 > 0:18:35My architect is in the process of drawing up some new plans...
0:18:35 > 0:18:38For four new three-bedroom houses.
0:18:38 > 0:18:41So, three roughly where they're in a terrace, where this is,
0:18:41 > 0:18:44and one at the back, at the back of the car park.
0:18:44 > 0:18:47Gardens and parking as well.
0:18:47 > 0:18:49So, why have you decided to change the plans that, you know,
0:18:49 > 0:18:52- came with this, cos it was for four two-bedroom flats?- Yeah.
0:18:52 > 0:18:55It was just to maximise the potential of the plot, really.
0:18:55 > 0:18:58And also, the way it was set up,
0:18:58 > 0:19:01- it was to redevelop this current building as it was...- Mm-hm.
0:19:01 > 0:19:03..and that would prove very expensive,
0:19:03 > 0:19:05cos we'd need to get a lot of structural steel in
0:19:05 > 0:19:07and it would effectively mean demolishing the whole thing,
0:19:07 > 0:19:09- just leaving the front wall...- Mm.
0:19:09 > 0:19:11..but repositioning all of the windows as well,
0:19:11 > 0:19:14which is effectively demolishing it anyway, but keeping everything.
0:19:14 > 0:19:16So, it kind of doesn't make any sense.
0:19:16 > 0:19:19So, my idea was just to raze it to the ground and start again.
0:19:19 > 0:19:23- You really are coming in here with your developer's head on, aren't you?- Exactly!
0:19:23 > 0:19:27And you need to get your money's worth from this site, and you'll utilise all of the space around.
0:19:27 > 0:19:28That's the plan, exactly.
0:19:28 > 0:19:32Four new three-bedroom houses and, as we know,
0:19:32 > 0:19:34there's a huge shortage of housing everywhere.
0:19:34 > 0:19:36And people need housing.
0:19:40 > 0:19:42Simrit thought it would take 12 months
0:19:42 > 0:19:46and a budget of 350,000 to build the four properties.
0:19:49 > 0:19:53However, when we returned over 18 months later,
0:19:53 > 0:19:55although the pub had been razed to the ground,
0:19:55 > 0:19:58there was no sign of Simrit's project being near completion.
0:19:58 > 0:20:03# I'm working on a dream
0:20:03 > 0:20:07# I'm working on a dream... #
0:20:08 > 0:20:13His original plan had initially been rejected, but accepted on appeal,
0:20:13 > 0:20:18costing him 12 months to finally get the permission to push on.
0:20:18 > 0:20:22His dream of his first major development was taking some time.
0:20:25 > 0:20:29# I'm working on a dream
0:20:29 > 0:20:33# Though sometimes it feels so far away... #
0:20:36 > 0:20:38This is where the pub used to be.
0:20:38 > 0:20:40That's the road that the pub used to front.
0:20:40 > 0:20:43And now, as you can see, the pub has been demolished.
0:20:43 > 0:20:46And here, what we have is...
0:20:46 > 0:20:50We've done...dug the foundations, we've poured the concrete
0:20:50 > 0:20:54and now we've built up the brickwork up to damp-proof course level.
0:20:54 > 0:20:58And the black blocks here give you a good indication
0:20:58 > 0:21:00of where the houses end as well,
0:21:00 > 0:21:04so this will be the rough floor area of one of the houses.
0:21:04 > 0:21:08After such a long delay, finally having something here,
0:21:08 > 0:21:13tangible to look at, it's a relief as well as quite exciting, as well.
0:21:18 > 0:21:21Simrit might have faced a long journey to get here,
0:21:21 > 0:21:24but he was enthusiastic about his plans.
0:21:25 > 0:21:29Um, so, these are the plans for the current terrace of houses.
0:21:29 > 0:21:31As you can see, they're just a very simple design,
0:21:31 > 0:21:37in keeping with the rest of the road, as the planners requested.
0:21:37 > 0:21:39Uh, this is the plan for the ground floor.
0:21:39 > 0:21:43You walk in the front door, you have stairs right in front of you.
0:21:43 > 0:21:48Kitchen on the left with an open-plan dining and reception area.
0:21:48 > 0:21:51Parking, one parking space at the front for each house
0:21:51 > 0:21:53and also one spot at the back.
0:21:53 > 0:21:55Moving on to the first floor,
0:21:55 > 0:22:00we have two bedrooms - one with an en suite and one family bathroom.
0:22:00 > 0:22:03And also a utility room there on the landing.
0:22:03 > 0:22:07And finally, moving on to the second floor, we've got a third bedroom
0:22:07 > 0:22:10with a dormer window facing towards the rear of the property.
0:22:12 > 0:22:15However, the fourth detached house at the back of the plot
0:22:15 > 0:22:19was still in the early stages of the planning process.
0:22:19 > 0:22:22The fourth house, uh, we've just put in planning.
0:22:22 > 0:22:23Actually, today,
0:22:23 > 0:22:25I believe my architect's put in planning for that.
0:22:25 > 0:22:28It's actually going to be a two-bedroom house, that one.
0:22:28 > 0:22:32The contract is for £369,000 -
0:22:32 > 0:22:34for the building of the terrace of three houses
0:22:34 > 0:22:35that we're doing at the moment.
0:22:35 > 0:22:38And at the moment, everything's going to budget.
0:22:38 > 0:22:44With huge sums of money at stake, his £460,000 purchase price
0:22:44 > 0:22:50and that 360-grand build cost totalled £830,000.
0:22:50 > 0:22:51Now, this was a huge undertaking
0:22:51 > 0:22:55and we'll find out how it turned out later on in the programme.
0:23:00 > 0:23:02Coming up in Gainsborough, in Lincolnshire...
0:23:02 > 0:23:04I'm not missing a beat.
0:23:10 > 0:23:13And in Denham, it seems Simrit may have hit the right note.
0:23:15 > 0:23:17It's always nice to be proven right.
0:23:26 > 0:23:29Back to Barry now, a town in South Wales,
0:23:29 > 0:23:34where I saw an intriguing lot guided at £28,000 plus.
0:23:34 > 0:23:38This four-floor property certainly gave you a lot for your money,
0:23:38 > 0:23:40starting with a good commercial unit
0:23:40 > 0:23:42on the ground level.
0:23:42 > 0:23:46And then upstairs, a maisonette flat that wasn't in such good condition.
0:23:47 > 0:23:49Definitely very spacious.
0:23:49 > 0:23:51Unfortunately, it looks like it's been subject
0:23:51 > 0:23:53to a bit of fire damage in the past.
0:23:53 > 0:23:59So, all the ceiling's gone. But it's, you know... Um...
0:24:00 > 0:24:02It'd be nice to have a few floorboards!
0:24:02 > 0:24:05- # Don't look down! - Oh-Oh
0:24:05 > 0:24:07# Down... #
0:24:07 > 0:24:11But upstairs you found two flats across two floors,
0:24:11 > 0:24:14and all this space for a low guide price
0:24:14 > 0:24:18persuaded Mel to part with £67,000 at the auction.
0:24:19 > 0:24:22She was so eager to get started, she had contractors in
0:24:22 > 0:24:26fixing up the commercial unit before sealing the deal.
0:24:26 > 0:24:29But as she was a solicitor, she wasn't worried about completion.
0:24:31 > 0:24:33- Do you do conveyancing?- I do, yes.
0:24:33 > 0:24:35Very convenient, then!
0:24:35 > 0:24:37- So, can you act for yourself on things like this?- Yes.
0:24:37 > 0:24:40- So, you actually did the whole deal? - I did.- Brilliant.
0:24:40 > 0:24:42Did you have to speak to yourself on the phone? Like...
0:24:42 > 0:24:45"When's it going to be done?" "Oh, I don't know, Tuesday, yeah?"
0:24:45 > 0:24:47Mel's brother Richard is in the building trade
0:24:47 > 0:24:52and he was going to project manage it over a 12-week schedule.
0:24:52 > 0:24:56Determined to be hands off, Mel was really only interested
0:24:56 > 0:24:59in the commercial space for her business
0:24:59 > 0:25:01and wanted to develop and sell the three two-bed flats,
0:25:01 > 0:25:03one of which was a maisonette.
0:25:03 > 0:25:07So, has Richard turned up trumps for her five months later?
0:25:10 > 0:25:13We're back to see how this big project turned out.
0:25:13 > 0:25:15A big, deep breath now!
0:25:15 > 0:25:18MAN GASPS ON: Radioactive by Imagine Dragons
0:25:18 > 0:25:21And let's begin in the commercial unit.
0:25:21 > 0:25:25This area has been finished off with a toilet and new flooring put down.
0:25:25 > 0:25:30But through the back, what shape is the maisonette flat in?
0:25:35 > 0:25:38# Welcome to the new age
0:25:38 > 0:25:41# To the new age Welcome to the new age... #
0:25:43 > 0:25:46It's now a bright, modern space with a quality kitchen,
0:25:46 > 0:25:49with an open-plan living area.
0:25:49 > 0:25:53A bathroom and two bedrooms upstairs on the first floor.
0:25:53 > 0:25:56And the two flats above are transformed as well.
0:26:03 > 0:26:05Both are similar in layout and style.
0:26:05 > 0:26:08And the quality of finish throughout is exceptional.
0:26:10 > 0:26:12There are a few remaining jobs to be done,
0:26:12 > 0:26:17but with the project 95% there, Mel must be pleased with the results.
0:26:18 > 0:26:22We wanted a high spec, so we got spotlights in, nice new kitchens,
0:26:22 > 0:26:25everything is new, so it has been done to a very high standard.
0:26:25 > 0:26:30The fire damage meant that there weren't any internal walls upstairs
0:26:30 > 0:26:34and the builders therefore had to replace everything.
0:26:34 > 0:26:36There's been a great deal of work carried out on the property.
0:26:36 > 0:26:42We've replaced all of the windows, the doors, the floors, the walls.
0:26:42 > 0:26:46Basically, everything's been replastered, rewired, replumbed.
0:26:46 > 0:26:50New bathrooms, new kitchens, everything really has been replaced.
0:26:50 > 0:26:54Mel originally intended to move her business into the commercial space,
0:26:54 > 0:26:56but she's been looking at other options too.
0:26:56 > 0:26:59I did make a pre-application for planning permission
0:26:59 > 0:27:02to turn the commercial unit into a one-bed flat,
0:27:02 > 0:27:05and when the chap came out, he was very positive.
0:27:05 > 0:27:08But actually, in the end, they said no.
0:27:08 > 0:27:10There is a regeneration project in Barry,
0:27:10 > 0:27:12in the Vale of Glamorgan at the moment.
0:27:12 > 0:27:15They paid for work to be done on the front of the building,
0:27:15 > 0:27:18as they have for the rest of the road, and that looks pretty good.
0:27:18 > 0:27:20In terms of downstairs, in the shop front,
0:27:20 > 0:27:23the reason I haven't spent any money dealing with that
0:27:23 > 0:27:28is because that is also going to qualify for a grant
0:27:28 > 0:27:30and I'm just waiting for that to come through.
0:27:30 > 0:27:33So, if I had spent it, it would have been wasted money, really.
0:27:33 > 0:27:36It always pays to look out for regeneration money
0:27:36 > 0:27:38through grants and loans.
0:27:38 > 0:27:40All the work inside is near complete,
0:27:40 > 0:27:42thanks to some brotherly love.
0:27:44 > 0:27:48My brother Richard, he used to work with my dad, who was a builder.
0:27:48 > 0:27:51Um, he doesn't do that now, but obviously, having a hand in,
0:27:51 > 0:27:53he's got experience, he was a plasterer as well,
0:27:53 > 0:27:58so he sourced the contractors for me and basically, took over
0:27:58 > 0:28:01and has been amazing just doing everything for me.
0:28:01 > 0:28:04And I did ask him to come along but he refused.
0:28:05 > 0:28:09Richard, you may be camera-shy, but take a bow, sir.
0:28:09 > 0:28:14The team has done a great job. But what about time and the money?
0:28:14 > 0:28:17The original timescale was 12 weeks, but it did take a little bit longer
0:28:17 > 0:28:21cos there was a lot more work, actually, when we started it,
0:28:21 > 0:28:22than we realised.
0:28:22 > 0:28:26So, it's taken probably between about 15 to 20 weeks
0:28:26 > 0:28:28finally to finish it.
0:28:28 > 0:28:32In terms of the costings, we had spent around 7,000 downstairs,
0:28:32 > 0:28:35but we hadn't quite finished, so I think we've probably spent
0:28:35 > 0:28:38another 2,000 with the flooring and just finishing off down there.
0:28:38 > 0:28:44Including the 9,000, the total of that was between 65 and 70,
0:28:44 > 0:28:46so I'm not really sure how that is made up
0:28:46 > 0:28:49in terms of each individual flat,
0:28:49 > 0:28:52but Richard would know that, but he's not here, of course.
0:28:53 > 0:28:56Richard's not here, but two local estate agents are,
0:28:56 > 0:28:58including the agent who saw it first.
0:28:58 > 0:29:00Will they be as impressed as I am?
0:29:02 > 0:29:05It's a complete transformation from the first time.
0:29:05 > 0:29:07They've done a fantastic renovation job.
0:29:07 > 0:29:10Maybe overspent in places, in my opinion,
0:29:10 > 0:29:12for the type of clientele it is going to attract,
0:29:12 > 0:29:15but nevertheless, they've done a fantastic job.
0:29:15 > 0:29:17Well, this is my first time inside the property.
0:29:17 > 0:29:20After having a good look around, I think the current owner
0:29:20 > 0:29:21has done a fantastic job here,
0:29:21 > 0:29:23he's utilised the space really well.
0:29:23 > 0:29:26He's done a lovely finish here. I think the layout flows really well.
0:29:26 > 0:29:28I think the landlord's done a very nice job, nice spec.
0:29:28 > 0:29:31Open-plan living, very in demand at the moment,
0:29:31 > 0:29:33certainly with first-time buyers.
0:29:33 > 0:29:36Four properties, four thumbs up from the agents.
0:29:36 > 0:29:40So, four valuations for this formidable building.
0:29:40 > 0:29:44Firstly, the agents believe that the commercial space could attract
0:29:44 > 0:29:51a maximum rental of £5,400 per annum and a sales price of around £40,000.
0:29:51 > 0:29:53But what about the maisonette flat?
0:29:55 > 0:29:57I would expect the maisonette to fetch
0:29:57 > 0:30:00somewhere in the region of £70,000 to £75,000.
0:30:00 > 0:30:05The maisonette would achieve in the region of £65,000.
0:30:07 > 0:30:10Both agents agree that the resale value of the other two flats
0:30:10 > 0:30:13is between 60,000 and 65,000.
0:30:14 > 0:30:16# Come on, y'all... #
0:30:16 > 0:30:18Those figures mean the total top value of the whole shebang
0:30:18 > 0:30:21would come to £245,000,
0:30:21 > 0:30:25giving Mel a possible pre-tax profit of 108 grand!
0:30:25 > 0:30:29I'm very happy with that, and in time, keeping the properties
0:30:29 > 0:30:32and renting them out, I'm sure the value will go up.
0:30:32 > 0:30:36And also, the regeneration of Barry and the Vale of Glamorgan
0:30:36 > 0:30:40means that again, there is another chance for the profit to go up.
0:30:40 > 0:30:42So, it looks like it might be rental.
0:30:42 > 0:30:45Adding the top rentals for the whole lot together
0:30:45 > 0:30:50would give Mel a yield of nearly 17%, which is impressive.
0:30:50 > 0:30:52I think it sounds like a good decision,
0:30:52 > 0:30:56but could she be tempted to go back to her original plan and sell?
0:30:56 > 0:30:59I think that if I could sell it all up quickly,
0:30:59 > 0:31:02and just run away with the profit, I probably would,
0:31:02 > 0:31:06but I think I'd rather just put some tenants in
0:31:06 > 0:31:09and let the mortgage be paid off.
0:31:09 > 0:31:13A huge project and a potentially huge profit.
0:31:13 > 0:31:17What has Mel learned from her largest development to date?
0:31:17 > 0:31:18I think I've learned from this experience
0:31:18 > 0:31:21to always have my brother involved...
0:31:21 > 0:31:24And let him deal with all the stress.
0:31:27 > 0:31:30The town of Gainsborough in Lincolnshire is also known
0:31:30 > 0:31:32as the capital that never was.
0:31:32 > 0:31:36When Sweyn Forkbeard was declared King of England in 1013,
0:31:36 > 0:31:40he and his son, Canute, made Gainsborough their base.
0:31:40 > 0:31:43However, Sweyn was killed weeks later
0:31:43 > 0:31:46and Canute decided to wave goodbye to Gainsborough.
0:31:46 > 0:31:49It's a town with wonderful historic buildings,
0:31:49 > 0:31:52so what can possibly be in store for me?
0:31:52 > 0:31:57The property I'm here to see has an extraordinary low guide price,
0:31:57 > 0:32:00which tells me you're not going to get a lot for the money.
0:32:00 > 0:32:05But before I tell you how much that is, it's a three-bed terraced house.
0:32:05 > 0:32:10The guide price is - wait for it - £12,000.
0:32:12 > 0:32:14Right, so what do you get for your 12 grand?
0:32:16 > 0:32:19Firstly, I'm a bit surprised at the size of your lounge,
0:32:19 > 0:32:20your living room area.
0:32:20 > 0:32:24You've got a fireplace over here, which has obviously been
0:32:24 > 0:32:26blocked up somehow, but usable -
0:32:26 > 0:32:28you'll have to get that swept out again.
0:32:28 > 0:32:31You could make a feature of that, but it's a good start.
0:32:31 > 0:32:34And go through here to the kitchen area,
0:32:34 > 0:32:37you've got stairs going up to the bedrooms.
0:32:37 > 0:32:40Now, this has surprised me, this is a nice-sized kitchen.
0:32:40 > 0:32:43Yes, you would have to change the units, make it new,
0:32:43 > 0:32:44spruce it up a little bit.
0:32:44 > 0:32:47In there you've got a cupboard area, a bit of a pantry there.
0:32:47 > 0:32:51And you've got a bathroom through there with a sink and toilet.
0:32:51 > 0:32:55Now, you could move that upstairs, depending on what we find.
0:32:55 > 0:32:57And a little bit of a back garden yard over there,
0:32:57 > 0:33:00and a sink, or is it?
0:33:00 > 0:33:02DION'S RATTLING ECHOES
0:33:02 > 0:33:03It's a drum.
0:33:04 > 0:33:08I know, but I have a bit of a fascination for drums.
0:33:08 > 0:33:11There are two bedrooms on the next floor. Did I say floor?
0:33:11 > 0:33:15Well, the floor seems to be absent, I'll come back to that,
0:33:15 > 0:33:18but I have noticed another set of stairs.
0:33:18 > 0:33:20Is this bedroom number three?
0:33:22 > 0:33:24So, more space.
0:33:24 > 0:33:26Again, you could have it as a kids' bedroom,
0:33:26 > 0:33:29a bit of a lounge area here with the sofa.
0:33:29 > 0:33:33But again, it's another addition to what you've got downstairs.
0:33:33 > 0:33:36I think it's OK, I like it, I like it, let's continue.
0:33:38 > 0:33:39So that's a bonus.
0:33:39 > 0:33:43Now, into the second bedroom, floorboards are everywhere...
0:33:43 > 0:33:46And damp as well, look at that. It's even...
0:33:46 > 0:33:48I get it on my fingers, you can even feel the damp.
0:33:48 > 0:33:51And there's four, five specks of this damp everywhere.
0:33:51 > 0:33:54Even over there on the far wall as well, there's more damp.
0:33:54 > 0:33:57But take a closer look down here.
0:33:57 > 0:34:00There's piping that's been sort of tampered with and cut,
0:34:00 > 0:34:02and even the electric cables as well.
0:34:02 > 0:34:03It's not the prettiest
0:34:03 > 0:34:05and it's a bit of a house full of mystery.
0:34:05 > 0:34:09So, we called in a man used to solving mysteries...
0:34:09 > 0:34:11A local estate agent.
0:34:11 > 0:34:15He may not be able to give us the reason why the flooring's up,
0:34:15 > 0:34:18but he will give us some all-important valuations.
0:34:20 > 0:34:24The property's a typical good purchase for a first-time buyer
0:34:24 > 0:34:26or a buy-to-let investor.
0:34:26 > 0:34:29Obviously, needs some remedial works carrying out to the property.
0:34:29 > 0:34:32But generally speaking, it is ideal for this part of the town
0:34:32 > 0:34:34and I'm sure will sell very quickly.
0:34:35 > 0:34:37If someone was buying to let,
0:34:37 > 0:34:40what sort of rental income could they expect from the property?
0:34:41 > 0:34:43In my opinion, once renovated,
0:34:43 > 0:34:48the property would be worth £300 to £325 per calendar month.
0:34:48 > 0:34:50And if they WERE to get this three-bedroom property
0:34:50 > 0:34:54for the guide price of £12,000, refurbished to its full potential,
0:34:54 > 0:34:58what could it resell for on the open market?
0:34:59 > 0:35:03In my opinion, once renovated, this property would be worth £35,000.
0:35:03 > 0:35:09So, at a guide price of £12,000, you would get yourself a decent-sized
0:35:09 > 0:35:14house with great potential, but there are a few issues you have to address.
0:35:14 > 0:35:16The pipework, the electrics that have been cut and that damp.
0:35:16 > 0:35:19But if it goes for anywhere near the guide price, you would have
0:35:19 > 0:35:21yourself a tidy investment.
0:35:21 > 0:35:23Let's see who agreed when it went to auction.
0:35:25 > 0:35:28Three-bedroomed Victorian mid-terraced house
0:35:28 > 0:35:30which does require modernisation
0:35:30 > 0:35:33and the guide price on this one is just £12,000.
0:35:33 > 0:35:38Who'd like to start me at this one at £12,000? £12,000 I'm bid.
0:35:38 > 0:35:43At 12,000, 13, at 13, 14, 15.
0:35:43 > 0:35:4616. 17. 18.
0:35:46 > 0:35:51At 18. 19. 20...at 21.
0:35:51 > 0:35:54At 21,000, 21,500.
0:35:54 > 0:35:5522, sir?
0:35:55 > 0:35:5922. At 22,000 seated at the front.
0:35:59 > 0:36:03Do I hear 500 anywhere? 22,500. 23.
0:36:03 > 0:36:0723,500. At 23,500 on the left.
0:36:07 > 0:36:10At 23,500, have another think about it.
0:36:10 > 0:36:15The bid is on my left at £23,500.
0:36:15 > 0:36:1724, anywhere?
0:36:17 > 0:36:21£23,500 once, twice, for the last time...
0:36:21 > 0:36:24selling at £23,500.
0:36:24 > 0:36:26Thank you, sir. Your number, please?
0:36:26 > 0:36:29The successful bid came from Flavio.
0:36:29 > 0:36:32A builder for two years now, he's branching out
0:36:32 > 0:36:34with his own property development.
0:36:34 > 0:36:39This £23,500 purchase is his first project.
0:36:39 > 0:36:41- Flavio, nice to meet you... and congratulations.- Thank you.
0:36:41 > 0:36:45- Tell me about the auction experience because it's all new to you.- It is.
0:36:45 > 0:36:50I was a bit nervous, something new, but it went well at the end.
0:36:50 > 0:36:52And now you've got it, what's your feelings now?
0:36:52 > 0:36:55- Did you view the property first? - No, I didn't.
0:36:55 > 0:36:59So it was...first property I made at the auction and I didn't see
0:36:59 > 0:37:05the property so everything is pretty much new and hopefully it will turn out well.
0:37:05 > 0:37:06Well, I hope so for you.
0:37:06 > 0:37:09Now...this is not your area, is it? This is not where you live?
0:37:09 > 0:37:13- It isn't, no.- Where are you from? - Boston, originally. So...
0:37:13 > 0:37:16I don't know the area as well, which is a small issue.
0:37:16 > 0:37:20- A bit of a gamble then, really? - Fingers crossed it will end up well.
0:37:20 > 0:37:23So, what made you actually go, what made you gamble, was it the price,
0:37:23 > 0:37:27was it because you're a builder and you know you can turn things around?
0:37:27 > 0:37:30Because of the price, it ended up quite cheap.
0:37:30 > 0:37:32Cheaper than what I expected.
0:37:33 > 0:37:38Flavio, in fact, was prepared to pay up to £30,000 for the property,
0:37:38 > 0:37:43so 23 and a half grand was well within his budget.
0:37:43 > 0:37:46Being a builder means saving on labour and materials, however,
0:37:46 > 0:37:47this is no doddle.
0:37:47 > 0:37:51It looks like a rewire and replumb upstairs might be called for.
0:37:51 > 0:37:55And Flavio lives in Boston, which is over 50 miles away
0:37:55 > 0:37:58and that means he's got some petrol to tot up.
0:37:58 > 0:38:01There is quite a bit to do here, so is he working alone?
0:38:02 > 0:38:06I will drag a few of my friends to help me out with the building.
0:38:06 > 0:38:09- So it gets done faster.- And what are you going to do, sell it?
0:38:09 > 0:38:13Just sell it, yeah. Just refurbish and sell it.
0:38:13 > 0:38:15I would say about, hopefully,
0:38:15 > 0:38:19two or three months in total then back on the market.
0:38:19 > 0:38:23- That would be pretty sharp. - Hopefully, yeah.- What's your budget?
0:38:23 > 0:38:26It's between £10,000 and £15,000 for this property.
0:38:26 > 0:38:30Which is quite a lot for the work that needs to be done, but
0:38:30 > 0:38:35I want to give it a high finishing, so...so it will probably look good
0:38:35 > 0:38:39because I want people to come inside the house and they will go "Wow".
0:38:39 > 0:38:44It will maybe take longer to sell because it will be more expensive.
0:38:44 > 0:38:47But I hope people will be happy when they buy it
0:38:47 > 0:38:49because it will look nice.
0:38:49 > 0:38:53I do hope Flavio is right about making this house high spec.
0:38:53 > 0:38:57You should always do research on ceiling prices in an area,
0:38:57 > 0:38:59especially if it's new to you.
0:38:59 > 0:39:03Remember, the agent reckoned this house could sell for £35,000
0:39:03 > 0:39:07and Flavio has already paid 23.5 grand.
0:39:07 > 0:39:11If he spends £15,000, he's over that valuation.
0:39:11 > 0:39:13So, tell us exactly what you're going to do,
0:39:13 > 0:39:17- how you're going to turn it around. - Well, pretty much do everything new.
0:39:17 > 0:39:20Take everything apart and do everything new.
0:39:20 > 0:39:23New kitchen, new bathroom, floors, doors.
0:39:23 > 0:39:25Everything, pretty much everything.
0:39:25 > 0:39:27Are you changing the layout of anything at all?
0:39:27 > 0:39:31No, not the layout because there's not much I can do
0:39:31 > 0:39:34on the layout and I quite like the layout of the house.
0:39:34 > 0:39:37- It will look nice at the end. - Are you happy?
0:39:37 > 0:39:39Yeah, I've got some good ideas for the attic room.
0:39:39 > 0:39:41I'm sure it will look nice.
0:39:41 > 0:39:45Flavio seems to be inspired by doing something well and so is this
0:39:45 > 0:39:48what made him take the plunge into developing property?
0:39:48 > 0:39:51I normally do this kind of job for other people.
0:39:51 > 0:39:54They buy the houses, we go renovate and then they sell it and
0:39:54 > 0:39:58I thought to myself, well, if they can make money on it, why not me?
0:39:58 > 0:40:01So, worth trying to do myself.
0:40:01 > 0:40:03I want to see how this first project does.
0:40:03 > 0:40:05If it does well, I'll buy another one.
0:40:05 > 0:40:08So, instead of making money for everybody else, you want to
0:40:08 > 0:40:11- start making money for yourself? - Yeah.
0:40:11 > 0:40:14Flavio is clearly a bit of a risk-taker.
0:40:14 > 0:40:18Not seeing the property beforehand other than on the net
0:40:18 > 0:40:21and he's not read the legal pack either.
0:40:21 > 0:40:23Then deciding to go for high-spec finishes
0:40:23 > 0:40:28and he's doing it all on his own, with a little help from his friends.
0:40:28 > 0:40:31So, what's his game plan for property development?
0:40:31 > 0:40:35Well, the first few properties just buy and sell, then after a few
0:40:35 > 0:40:40properties, I might keep one to rent and buy one, keep doing same thing.
0:40:40 > 0:40:43Are you going to try and buy anything near where you live, or...?
0:40:43 > 0:40:44Will do, yes. Yes.
0:40:44 > 0:40:48Because it is quite far from where I live, I'll need to travel a lot.
0:40:48 > 0:40:51Maybe next time I'll buy something closer as well.
0:40:51 > 0:40:55How long is it going to take to get here? You're going to have to spend time turning it around.
0:40:55 > 0:40:59It takes about an hour and a half, an hour and 45 minutes to get from my house to here.
0:40:59 > 0:41:01And, yeah, every day, it's not easy.
0:41:01 > 0:41:04That was no issue when you were at the auction and you seen it?
0:41:04 > 0:41:08No, because normally I take about an hour every day to go to work.
0:41:08 > 0:41:10So, it's only half an hour more.
0:41:10 > 0:41:11And your building friends,
0:41:11 > 0:41:14have they got to come a long way to help you out, or are they near?
0:41:14 > 0:41:16No, they come a long way as well.
0:41:16 > 0:41:20Yeah, we bring a few vans down and we'll get it done.
0:41:20 > 0:41:24Let's hope Flavio's friends give him a good deal because he'll have
0:41:24 > 0:41:28to cut costs if he wants to see a profit and a high-spec finish.
0:41:28 > 0:41:31What about the day job as a self-employed builder
0:41:31 > 0:41:33working for other clients and companies?
0:41:33 > 0:41:36I'll do both things at the same time.
0:41:36 > 0:41:39I'll take a few days off to come and work at the property.
0:41:39 > 0:41:42And I'll do a few days for the company as well.
0:41:42 > 0:41:45Yeah, that's why I give it two or three months to do it
0:41:45 > 0:41:47- because I won't be doing it every day.- OK.
0:41:47 > 0:41:50So, I'll give it more time to get it sorted and done.
0:41:50 > 0:41:52I'd love you to make a nice profit on this.
0:41:52 > 0:41:54What's your, what's your ideal?
0:41:54 > 0:41:55If you sell it, you do it up and sell it,
0:41:55 > 0:41:59you get it at a high spec, what are you hoping to go away with?
0:41:59 > 0:42:02Well, I don't know. The properties around this road vary.
0:42:02 > 0:42:08Like, next door I think was sold for 70 grand a few months ago.
0:42:08 > 0:42:13The one around the road was sold for 40 grand so that's a big difference.
0:42:13 > 0:42:15That's why I'm trying to give a high spec to this one
0:42:15 > 0:42:17so it goes a bit higher, between 60 and 70 grand.
0:42:17 > 0:42:20Will you go back to auction again to get your next property?
0:42:20 > 0:42:21After I sell this one.
0:42:21 > 0:42:23- And start all over again?- Yes.
0:42:23 > 0:42:27Will you try and go for something of the same size or would you try and go bigger, same sort of style?
0:42:27 > 0:42:30No, I like this style, three-bedroom house.
0:42:30 > 0:42:31Well, I think, for what you,
0:42:31 > 0:42:34what you've paid at auction I think you've got a good property.
0:42:34 > 0:42:38- It's a lot bigger than what you see from the outside, from the road. - Yeah.
0:42:38 > 0:42:42And I think, with your building head and your building skills...
0:42:42 > 0:42:45- and all your friends that you're going to pay very little to... - Ideal, yes.
0:42:45 > 0:42:48..I think you'll turn it around, I think it will be a really good
0:42:48 > 0:42:51- project for you. Congratulations, young man.- Thank you.- Good luck.
0:42:51 > 0:42:52Thank you. Cheers.
0:42:55 > 0:42:57So, Flavio has got lucky with this property.
0:42:57 > 0:43:00He's landed on his feet but he didn't read the legal pack
0:43:00 > 0:43:02and he didn't view the property.
0:43:02 > 0:43:05So, for his first one, fingers crossed he's chosen right.
0:43:05 > 0:43:07Now, will his friends help him out?
0:43:07 > 0:43:11What about that distance of about an hour and a half from where he lives?
0:43:11 > 0:43:13Will it work for him? Will it be high spec?
0:43:13 > 0:43:15You can find out later on in the programme.
0:43:18 > 0:43:20So, how did our buyers do today?
0:43:20 > 0:43:23Have their efforts at improving their properties paid off?
0:43:23 > 0:43:25Let's take a look.
0:43:30 > 0:43:33I first visited Denham in March 2013,
0:43:33 > 0:43:40to see a traditional English country pub guided at £375,000.
0:43:40 > 0:43:43The charming old bar was to be stripped out.
0:43:43 > 0:43:45It seemed the planning permission, for four flats,
0:43:45 > 0:43:48already granted, was a desirable project.
0:43:50 > 0:43:52But buyer Simrit had other ideas.
0:43:52 > 0:43:57Having paid £460,000 at auction, the London developer wanted to
0:43:57 > 0:44:01maximise the space and the return on his investment.
0:44:02 > 0:44:05My architect is in the process of drawing up some new
0:44:05 > 0:44:09plans for four new three-bedroom houses,
0:44:09 > 0:44:12so, three roughly where they're in a terrace, where this is.
0:44:12 > 0:44:15And one at the back at the back of the car park.
0:44:15 > 0:44:18Gardens and parking as well.
0:44:18 > 0:44:20We returned 18 months later
0:44:20 > 0:44:23and planning permission problems had meant Simrit had only been
0:44:23 > 0:44:27able to lay foundations for three terraced houses.
0:44:28 > 0:44:32After such a long delay, finally having something here
0:44:32 > 0:44:38tangible to look at, it's a relief as well as quite exciting as well.
0:44:38 > 0:44:41Simrit also applied for planning permission to build a two-bedroomed
0:44:41 > 0:44:45detached house at the back and then it was just a matter of waiting.
0:44:49 > 0:44:52This was Simrit's first new build from scratch
0:44:52 > 0:44:56and he was learning it was more complex than a renovation.
0:44:56 > 0:44:59We went back two years after the project started and, well,
0:44:59 > 0:45:02I think you've waited long enough to see it.
0:45:04 > 0:45:11MUSIC: Lifted Up (1985) by Passion Pit
0:45:33 > 0:45:37Fantastic and well worth the wait.
0:45:37 > 0:45:41The terraced houses are almost complete, with one finished
0:45:41 > 0:45:43and the others just about there.
0:45:44 > 0:45:47Simrit's overseen the build over all this time
0:45:47 > 0:45:50and he can explain the layout of each house in the terrace.
0:45:50 > 0:45:54So, here we have three three-bedroomed houses
0:45:54 > 0:45:57with two bathrooms and a WC downstairs.
0:45:59 > 0:46:01Open plan living and dining area
0:46:01 > 0:46:03and a separate kitchen on the ground floor.
0:46:03 > 0:46:07Up on the middle floor, we have two bedrooms, one with an ensuite
0:46:07 > 0:46:09and one family bathroom.
0:46:09 > 0:46:11On the top floor, we have another double bedroom.
0:46:11 > 0:46:13It's hard to visualise what it's actually going to look like
0:46:13 > 0:46:16from the plans, but when you come in, they're really roomy
0:46:16 > 0:46:19and there's lots of space and light and it's exactly what I...
0:46:19 > 0:46:21You know, it's more than I could've wished for.
0:46:21 > 0:46:24Everything's coming together, kind of, really well at the last minute.
0:46:24 > 0:46:26Like you saw when you were here last time,
0:46:26 > 0:46:30it was just the foundations, but everything came together pretty
0:46:30 > 0:46:33quickly from there and now it's just the last finishing touches to do.
0:46:33 > 0:46:38One house is complete, but the other two still require a few odd jobs,
0:46:38 > 0:46:41ranging from fittings to dropping the kerb outside,
0:46:41 > 0:46:44but the quality of finish is superb.
0:46:44 > 0:46:47It's taken a long time for Simrit to get here,
0:46:47 > 0:46:51over two years in fact, but planning wasn't the only cause of delay.
0:46:51 > 0:46:55There was a couple of variations we had to go to the council for.
0:46:55 > 0:46:57So that took a little bit of time and also
0:46:57 > 0:47:00we had some bad weather, so that delayed it by a couple of months.
0:47:00 > 0:47:02It took a bit of time to get the roof on.
0:47:02 > 0:47:04We had a little bit of extra brickwork to do
0:47:04 > 0:47:07and because of the damp conditions, it was hard to get that done.
0:47:07 > 0:47:11But all those problems haven't put Simrit off doing more building.
0:47:11 > 0:47:13Last time we saw him, he had just submitted planning
0:47:13 > 0:47:16for a fourth house on what was once the car park
0:47:16 > 0:47:18and that's something he's still pursuing.
0:47:20 > 0:47:22So, as you can see, there,
0:47:22 > 0:47:25that's quite a large plot at the back, there, which was originally...
0:47:25 > 0:47:27Made up part of the car park for the pub.
0:47:27 > 0:47:31And what I'm trying to do now, is vary the planning permission that
0:47:31 > 0:47:34was granted when these houses were permitted to be built,
0:47:34 > 0:47:38because the original planning permission had a provision
0:47:38 > 0:47:40for some parking spots at the back,
0:47:40 > 0:47:43which I'm trying to vary, so they're no longer required.
0:47:43 > 0:47:45Therefore, that would make that plot a lot larger
0:47:45 > 0:47:50and I can get planning permission for one, maybe two houses there.
0:47:50 > 0:47:52That's all for the future, though.
0:47:52 > 0:47:55For the three terraced houses, his build budget was
0:47:55 > 0:48:02originally 350,000, rising to 369 grand by the time he started.
0:48:02 > 0:48:04So, how are his sums going now?
0:48:04 > 0:48:07So, it ended on probably about 380, to be honest,
0:48:07 > 0:48:11with the extra spec I pushed up, like the quartz worktop, cost me
0:48:11 > 0:48:14an bit extra, the carpet, obviously, a bit extra,
0:48:14 > 0:48:15so that pushed it up a little bit everywhere.
0:48:15 > 0:48:18So about 380, we ended up on.
0:48:18 > 0:48:21But the key question - is he happy with the results?
0:48:21 > 0:48:23I'm incredibly happy with the results, actually.
0:48:23 > 0:48:26There are a couple of things I probably would've changed,
0:48:26 > 0:48:29for example, maybe the brick colour,
0:48:29 > 0:48:32I would've gone for a darker brick, maybe.
0:48:32 > 0:48:34Other than that, I'm pretty happy with the results.
0:48:34 > 0:48:37I mean, the internals, I think, are excellent.
0:48:37 > 0:48:39Everyone who's seen them, loves them,
0:48:39 > 0:48:41and I'm very happy with the finish.
0:48:44 > 0:48:46But will two local estate agents love them?
0:48:46 > 0:48:49What do they make of these Denham delights?
0:48:49 > 0:48:52Let's start with the agent who saw it the last time.
0:48:55 > 0:48:58The finished development is quite impressive.
0:48:58 > 0:49:01I think the finish is very good.
0:49:01 > 0:49:04The choice of floor coverings, bathrooms, kitchens, etc,
0:49:04 > 0:49:07all very much in keeping with the market.
0:49:08 > 0:49:09So, yeah, very good.
0:49:09 > 0:49:12First impressions of the property is they're absolutely stunning,
0:49:12 > 0:49:15really great, really bright and airy.
0:49:15 > 0:49:17I think they've done a very good job.
0:49:17 > 0:49:23Simrit's total spend now stands at £840,000, so what do the agents
0:49:23 > 0:49:26think these terraced houses could fetch on the open market?
0:49:27 > 0:49:31With these properties, I think to put them on the market at a guide
0:49:31 > 0:49:38price of £425, that's £425,000 with achieving £450,000.
0:49:38 > 0:49:43Once completed, I would estimate that we would be recommending
0:49:43 > 0:49:49a marketing price of between 445 and 450,000 for the two
0:49:49 > 0:49:53end of terraced properties and slightly less for the mid-terrace.
0:49:53 > 0:49:56And the good news for Simrit is that he's already sold the middle
0:49:56 > 0:50:01and one of the end terraces for £435,000 each.
0:50:02 > 0:50:05Yeah, that's about right and, hopefully, when this one
0:50:05 > 0:50:08goes on the open market, maybe can reach the higher end.
0:50:09 > 0:50:14If he sells the third house for that suggested 450,000, his total
0:50:14 > 0:50:21will be 1.32 million, giving him a pre-tax profit of £480,000.
0:50:21 > 0:50:23And, of course, there is
0:50:23 > 0:50:26still that possible further development to consider.
0:50:26 > 0:50:29Simrit has definitely had to play the waiting game on this one,
0:50:29 > 0:50:30but how does he feel now?
0:50:32 > 0:50:34It's always nice to be proven right.
0:50:34 > 0:50:37The delay was a problem, but in that time, the properties
0:50:37 > 0:50:39have appreciated, as well, beyond 415, which is
0:50:39 > 0:50:43what I had initially anticipated, so, every cloud has a silver lining.
0:50:48 > 0:50:53Back to the nearly English capital of Gainsborough, where earlier I saw
0:50:53 > 0:50:57a three-bed mid-terraced with a guide price of just £12,000.
0:50:58 > 0:51:00Right, what do you get for your 12 grand?
0:51:01 > 0:51:06Answer - you get a traditional two up, two down in not bad condition.
0:51:06 > 0:51:09We've seen dozens of these types of properties on the show over
0:51:09 > 0:51:13the years, albeit not for a dozen grand on the guide price,
0:51:13 > 0:51:17but there was something different about this one.
0:51:17 > 0:51:18So, more space.
0:51:20 > 0:51:23Another addition to what you've got downstairs.
0:51:23 > 0:51:27On the first floor, the two bedrooms had, well, no floors,
0:51:27 > 0:51:29and possibly other missing parts.
0:51:29 > 0:51:32There's piping that's been tampered with and cut
0:51:32 > 0:51:36and even the electric cables, as well. And damp, as well.
0:51:36 > 0:51:40Look at that. Even over there on the far wall, as well, there's more damp.
0:51:40 > 0:51:43It's not the prettiest and it's a bit of house of mystery.
0:51:47 > 0:51:51But we did solve one mystery. Who would buy this bargain house?
0:51:51 > 0:51:53Drum roll, please.
0:51:55 > 0:52:00Enter Flavio, who paid £23,500.
0:52:00 > 0:52:04And this was the first project for this ambitious young builder.
0:52:04 > 0:52:07- You viewed the property first? - No, I didn't.
0:52:07 > 0:52:10So, it was the first property I buy at the auction
0:52:10 > 0:52:14and I didn't see the property, so, everything pretty much new
0:52:14 > 0:52:18- and, hopefully, it'll turn out well.- Oh, dear!
0:52:18 > 0:52:21He broke the Homes Under The Hammer golden rules.
0:52:21 > 0:52:23But he reckoned on a two to three month timescale,
0:52:23 > 0:52:25he would have a high-spec property.
0:52:26 > 0:52:28Five months later, we're back.
0:52:31 > 0:52:33MUSIC PLAYS
0:52:53 > 0:52:56It looks much better, so what has he done to the house?
0:52:59 > 0:53:02On the ground floor, I had to put a new bathroom, new kitchen,
0:53:02 > 0:53:09floor, tiling walls, new carpets on the stairs.
0:53:09 > 0:53:12On the first floor I had to put new floors, as well,
0:53:12 > 0:53:15paint the whole house, the ceilings.
0:53:15 > 0:53:19On the attic, we had to put new staircase, new walls,
0:53:19 > 0:53:22new lights, again, carpets.
0:53:22 > 0:53:25Basically, I had to put everything brand-new.
0:53:26 > 0:53:28There was an issue with dreadful damp
0:53:28 > 0:53:32and it looks like Flavio has solved the mystery to its cause.
0:53:33 > 0:53:35So, this is the wall that had damp everywhere.
0:53:35 > 0:53:37We had a broken tile on the roof.
0:53:37 > 0:53:40We had to go up on the roof, replace the tile, wait for the damp
0:53:40 > 0:53:43to come out, so then we can re-plaster
0:53:43 > 0:53:45and repaint the wall again.
0:53:45 > 0:53:47When we first came, all the floor boards were up,
0:53:47 > 0:53:50cutting the electric wires, all the copper pipe,
0:53:50 > 0:53:54so we had an electrician and plumber down.
0:53:54 > 0:53:59We rewired all the house, re-plumbed all the first floor, we put
0:53:59 > 0:54:04the floorboards back on, skirting boards, new doors, radiators.
0:54:04 > 0:54:06Had to put everything new again.
0:54:08 > 0:54:11Flavio's original budget was £15,000,
0:54:11 > 0:54:14but after he started the project, he did some research.
0:54:16 > 0:54:21Well, when I first bought the house, I was thinking about the value
0:54:21 > 0:54:24of the property, about 70 to £80,000.
0:54:24 > 0:54:26But after I buy the house,
0:54:26 > 0:54:29I did deeper research and I found out the maximum it was worth,
0:54:29 > 0:54:36would be about 50 to 60,000, so I had a first budget of £10-£15,000.
0:54:36 > 0:54:38Because of the value of the property,
0:54:38 > 0:54:41we decided to try to do things cheaper.
0:54:41 > 0:54:46I ended up only spending £5,000 to £6,000 on the property,
0:54:46 > 0:54:48to do all this work.
0:54:48 > 0:54:51I'm glad that Flavio took another look at the resale
0:54:51 > 0:54:53value of this house.
0:54:53 > 0:54:56Sometimes similar houses can differ hugely in a matter of a few
0:54:56 > 0:55:01hundred yards, so it always pays to go deeper, as Flavio has.
0:55:01 > 0:55:04He changed his plan, but is timescale also shifted.
0:55:06 > 0:55:09Well, I was hoping to take about two or three months to complete
0:55:09 > 0:55:14everything in the house, but because I'm quite busy on my day job,
0:55:14 > 0:55:16I did this in a bad time.
0:55:16 > 0:55:21It took me about six, seven months to do the job in the house.
0:55:21 > 0:55:24I did it myself and with two friends of mine.
0:55:24 > 0:55:28They come and help me out when I come to do the work.
0:55:28 > 0:55:31Come on, Flavio, give your friends a name check.
0:55:31 > 0:55:34A thanks on national TV goes a long way.
0:55:35 > 0:55:40One of them is Carlos, a good friend of mine. The other one is Antonio.
0:55:40 > 0:55:44He's a good friend of mine, as well. Thank you very much for the help.
0:55:45 > 0:55:48Like I said, everybody needs good mates,
0:55:48 > 0:55:52so has all the effort and Flavio's change of plan been for the best?
0:55:52 > 0:55:55We asked along two local estate agents to tell us.
0:55:56 > 0:55:59This is my second time inside the property.
0:55:59 > 0:56:01Originally, the property was in a poor state of repair,
0:56:01 > 0:56:04but the current owner has done well with the changes.
0:56:04 > 0:56:07He's improved it to a good standard throughout.
0:56:07 > 0:56:09The selling points are, modern fitted kitchen,
0:56:09 > 0:56:12modern bathroom and a nice decoration throughout.
0:56:12 > 0:56:15The standard of the finishing is good.
0:56:15 > 0:56:18It is better than normal for the area.
0:56:18 > 0:56:22Flavio plans to sell but having spent a total of £29,500
0:56:22 > 0:56:24buying and renovating,
0:56:24 > 0:56:27what sort of sale and rental figures can he expect?
0:56:29 > 0:56:32If this property were to go on the market for sale,
0:56:32 > 0:56:35I would expect it to achieve in the region of £40,000,
0:56:35 > 0:56:37and if it was to go on the market for rent,
0:56:37 > 0:56:39around £350 a calendar month.
0:56:39 > 0:56:41If this property was to be put on the open market,
0:56:41 > 0:56:45I would expect it to achieve a figure in the region of £40,000.
0:56:45 > 0:56:48If this property were to be put on the rental market,
0:56:48 > 0:56:52I would expect it to achieve £350 per calendar month.
0:56:52 > 0:56:56£350 per calendar month would give Flavio a rather tempting
0:56:56 > 0:57:00yield of just over 14%, but his game plan is to sell.
0:57:00 > 0:57:02So what does he think?
0:57:03 > 0:57:07Well, about the rental figure, I was thinking about 300 per
0:57:07 > 0:57:11calendar month, so that is a bit higher than what I expected.
0:57:11 > 0:57:15But, the plan for this property is to sell it on.
0:57:15 > 0:57:17I think about the sales figure,
0:57:17 > 0:57:20because of the research I've been doing these last few
0:57:20 > 0:57:26weeks of the houses, I think I could sell the house for at least £50,000.
0:57:26 > 0:57:30Even if I sell this for £40,000, I still get a profit.
0:57:30 > 0:57:31# Get it right the first time
0:57:31 > 0:57:33# That's the main thing
0:57:33 > 0:57:38# Oh, la la la la la la la... #
0:57:38 > 0:57:44Flavio should make a pre-tax profit of £10,500 if he sold at 40 grand.
0:57:44 > 0:57:47So, will he be reinvesting that in his next purchase?
0:57:49 > 0:57:53# Get it right the next time that's not the same thing
0:57:53 > 0:57:55# Oh... #
0:57:55 > 0:57:58I want to sell this property as soon as possible,
0:57:58 > 0:58:01go back at the auction, buy another one
0:58:01 > 0:58:06and then maybe rent it or sell it again, depending on the valuation.
0:58:09 > 0:58:11We hoped you've enjoyed the show.
0:58:11 > 0:58:13And perhaps got some inspiration from our buyers.
0:58:13 > 0:58:16And we'll see you next time with more property stories.
0:58:16 > 0:58:18- See you then.- Goodbye.- Bye.