0:00:02 > 0:00:03You don't have to be a seasoned developer
0:00:03 > 0:00:05to bag a property at auction.
0:00:05 > 0:00:08No, but whatever your experience be warned,
0:00:08 > 0:00:11it pays to expect the unexpected and it won't be without its challenges.
0:00:11 > 0:00:14Being prepared is the name of the game but we're here to help you along the way.
0:00:41 > 0:00:43Variety is the spice of life
0:00:43 > 0:00:45and that's what you'll find at the auction room.
0:00:45 > 0:00:47Yes, along with a wide range of property
0:00:47 > 0:00:49and many people trying to outbid their rivals.
0:00:49 > 0:00:52Yes, so let's see who was successful with what they were after
0:00:52 > 0:00:54on today's show.
0:00:55 > 0:00:59This two-bedroom bungalow in Shropshire has scores of spores.
0:00:59 > 0:01:01Dry rot can be an absolute nightmare
0:01:01 > 0:01:04and if you don't get it sorted early enough it can cost a fortune.
0:01:05 > 0:01:09Dozens of stairs pack this London semi turned into three flats.
0:01:09 > 0:01:12It's tight, you've got a big slope here,
0:01:12 > 0:01:14it's all a little bit, you know!
0:01:15 > 0:01:19In this two-bed terrace in Derby I learned to be careful
0:01:19 > 0:01:21which doors I knock on.
0:01:21 > 0:01:23Sorry. Sorry!
0:01:23 > 0:01:25Nothing.
0:01:27 > 0:01:29All these properties have been sold at auction.
0:01:29 > 0:01:32We'll find out who bought them and what they paid for them
0:01:32 > 0:01:34when they went under the hammer.
0:01:34 > 0:01:36Sold.
0:01:43 > 0:01:46This is Ashley close to the Staffordshire/Shropshire border.
0:01:46 > 0:01:49It's a quiet, quintessential English rural village
0:01:49 > 0:01:52with a real laid-back charm.
0:01:52 > 0:01:55Perfect for those who want a more relaxed pace of life.
0:01:57 > 0:02:01And this street of bungalows feels pretty relaxed.
0:02:01 > 0:02:04The village with just a few hundred residents feels like a great place
0:02:04 > 0:02:07to downsize or even retire.
0:02:07 > 0:02:10The property I'm here to see is this bungalow here,
0:02:10 > 0:02:13it's a two-bed and it has a guide price of £108,000.
0:02:13 > 0:02:15I'm going to have a look.
0:02:17 > 0:02:21Already looking good. A nice garden and plenty of parking space.
0:02:21 > 0:02:22So what's inside?
0:02:24 > 0:02:25What have we got?
0:02:25 > 0:02:28OK, large room at the back there.
0:02:28 > 0:02:31Kitchen just alongside it.
0:02:31 > 0:02:34Bathroom and a smaller room there which I would imagine
0:02:34 > 0:02:36is one of the bedrooms.
0:02:36 > 0:02:41Into the main room here, our living room/lounge area here.
0:02:41 > 0:02:44This property clearly has an issue with dampness.
0:02:44 > 0:02:47Let's hope it's not the dreaded dry rot.
0:02:47 > 0:02:48Dry rot can be an absolute nightmare
0:02:48 > 0:02:51because the fungus can actually get into the timbers
0:02:51 > 0:02:54and if you don't get it sorted early enough it can cost a fortune.
0:02:54 > 0:02:57I'm pretty sure that is very unsafe.
0:02:57 > 0:03:01It could mean stripping a floor, a wall or even a roof,
0:03:01 > 0:03:05step over that, right back to its structural timbers
0:03:05 > 0:03:08and completely replacing them.
0:03:08 > 0:03:09Or, if caught in time,
0:03:09 > 0:03:12there are chemical treatments that can save the wood.
0:03:12 > 0:03:17I'm not sure there's any chance of that one to be saved.
0:03:17 > 0:03:20# So come on baby And save me
0:03:20 > 0:03:23# I'm running for cover Save me... #
0:03:24 > 0:03:27Finding the cause of this is really a priority here.
0:03:27 > 0:03:30Once you've dealt with that there are plenty of options to consider
0:03:30 > 0:03:32when it comes to the layout.
0:03:35 > 0:03:38This is a two-bed property but this bedroom here
0:03:38 > 0:03:44has clearly been extended judging by this one here.
0:03:44 > 0:03:47I know there's going to be builders and property developers thinking,
0:03:47 > 0:03:49could this be a three-bed?
0:03:49 > 0:03:53Could it add value? Would it add value? I'm not entirely sure.
0:03:53 > 0:03:56So into the kitchen which is a bit of a mess.
0:03:56 > 0:03:59But it is a good floor space, it is a good start.
0:03:59 > 0:04:01You could have a nice kitchen in there.
0:04:01 > 0:04:04Through into the extension which is tiled.
0:04:04 > 0:04:07I'd imagine that was some kind of utility room to link these two together.
0:04:07 > 0:04:12You've got access to the garage there and a door out to the garden.
0:04:12 > 0:04:16I think, with the right work, you could possibly gain some
0:04:16 > 0:04:18good inside living space from this
0:04:18 > 0:04:22because you have got your carport to keep the motor
0:04:22 > 0:04:25nice and pristine looking.
0:04:25 > 0:04:29But that all depends on the buyer and the lifestyle they lead.
0:04:30 > 0:04:33I'm always surprised at how spacious these bungalows are inside.
0:04:33 > 0:04:35If you did find yourself short of room
0:04:35 > 0:04:37you could extend into the garden.
0:04:39 > 0:04:43But if you're like me, you might just prefer to keep the garden as it is.
0:04:43 > 0:04:47Sit back, soak up the summer sun, when it comes out!
0:04:49 > 0:04:52Let's hear the opinion of a local estate agent.
0:04:53 > 0:04:55This is a really good property.
0:04:55 > 0:04:58It requires a lot of modernising and renovation work
0:04:58 > 0:04:59but has a lot of potential.
0:04:59 > 0:05:04There's lots of space to work with and it's in a really good location.
0:05:04 > 0:05:06The problems with the flooring in the living room has probably
0:05:06 > 0:05:10been caused by the extension that's been added on covering up some of the air bricks
0:05:10 > 0:05:14so that would need a closer look at how to alleviate that problem.
0:05:16 > 0:05:20Hopefully that is the case but I'd recommend a specialist report.
0:05:20 > 0:05:22How about the values?
0:05:22 > 0:05:25In my opinion, if the property were to be an open market,
0:05:25 > 0:05:29depending on the finish, it would sell for somewhere in the region
0:05:29 > 0:05:30of £170-£190,000.
0:05:30 > 0:05:35It would rent somewhere around £650-£675 per calendar month.
0:05:38 > 0:05:42So this house needs a fair bit of work not least to sort out that damp.
0:05:42 > 0:05:45But there's potential to extend as well
0:05:45 > 0:05:48and you can maximise your profits if you reconfigure for the re-sale.
0:05:48 > 0:05:51Let's see who fancied it when it went to auction.
0:05:54 > 0:05:56An extended detached bungalow.
0:05:56 > 0:06:01Two bedrooms, UPVC double glazing, oil central heating and a carport.
0:06:01 > 0:06:02100,000, start me?
0:06:03 > 0:06:06Lot number three. 100,000 bid, Thank you.
0:06:06 > 0:06:07At £100,000.
0:06:07 > 0:06:09105, going to say now.
0:06:09 > 0:06:11105 bid now. At 105.
0:06:11 > 0:06:13110? £110,000.
0:06:13 > 0:06:17The lot attracted plenty of interest
0:06:17 > 0:06:19and soon the guide price was eclipsed.
0:06:19 > 0:06:21We rejoin the bidding at £117,000.
0:06:22 > 0:06:24117. Another 500?
0:06:24 > 0:06:27£117,500.
0:06:27 > 0:06:30118. Have I got...? 118,500.
0:06:30 > 0:06:34119. 119,500. 120.
0:06:34 > 0:06:35120,500.
0:06:35 > 0:06:38121. Do you want to go 122, sir? 122.
0:06:38 > 0:06:40123.
0:06:42 > 0:06:44124? 124.
0:06:44 > 0:06:46125.
0:06:47 > 0:06:48126?
0:06:49 > 0:06:54No? At 125. Still on the back row. £125,000 then, all done.
0:06:55 > 0:06:57At £125,000 once then.
0:06:57 > 0:07:01£125,000 twice.
0:07:01 > 0:07:04Third and final time at £125,000.
0:07:05 > 0:07:07You've bought it, sir. Well done.
0:07:07 > 0:07:11Neil at the auction with his partner Trisha have paid £125,000
0:07:11 > 0:07:15for the property for himself and his business partner, David.
0:07:16 > 0:07:19You will have seen the duo on the show before,
0:07:19 > 0:07:24most recently renovating this large corner site into eight flats.
0:07:24 > 0:07:26What about this place then?
0:07:26 > 0:07:29- Yeah, it's big, isn't it? - Why did you want to buy it?
0:07:29 > 0:07:33- Simply, the sheer size of the property made it an attractive option.- OK.
0:07:33 > 0:07:37And the huge volume meant savings by buying in bulk.
0:07:37 > 0:07:42Kitchens were all bought at the same time at a very competitive price.
0:07:42 > 0:07:46Same with the showers. It was eight of everything.
0:07:46 > 0:07:49But economies of scale won't be applicable this time.
0:07:49 > 0:07:51David, nice to meet you. Neil, nice to meet you.
0:07:51 > 0:07:53- Congratulations.- Thank you.
0:07:53 > 0:07:56You're an old hat at this. You've done this many times before.
0:07:56 > 0:07:59Tell us what the auction was like this time.
0:07:59 > 0:08:01- Fairly quiet this time. - Did you go together?
0:08:01 > 0:08:04No, I didn't go to this one. Neil went on his own.
0:08:04 > 0:08:07- You let him loose?- I trusted him on his own, yes!- You let him loose.
0:08:07 > 0:08:09Why this property?
0:08:09 > 0:08:13I think the idea was to move away from some of the properties
0:08:13 > 0:08:16we've done recently. We wanted to do something different.
0:08:16 > 0:08:20This is a bungalow in a nice area for retirement,
0:08:20 > 0:08:23ideal for downsizers and it came in at the right price.
0:08:23 > 0:08:26As soon as I came into this property I could smell...
0:08:26 > 0:08:29You can smell the damp and the rot.
0:08:29 > 0:08:31How are you going to fix that?
0:08:31 > 0:08:34We've got the damp person coming in. He's been in, had a quick look at it.
0:08:34 > 0:08:36A lot of it, we think, is just ventilation.
0:08:36 > 0:08:40The smell that you could smell, the place has been locked up for two, three years.
0:08:40 > 0:08:42Hopefully with a bit of airing,
0:08:42 > 0:08:46ventilation bricks under the floor, it will clear a lot of it.
0:08:46 > 0:08:48Yeah, we've got to look at the timbers.
0:08:48 > 0:08:50Some of the timbers are rotted, perished away
0:08:50 > 0:08:53so we're going to have to replace those.
0:08:53 > 0:08:57We will probably put a new damp-proof course in just to
0:08:57 > 0:08:59make sure it's all dry under there.
0:08:59 > 0:09:02The assumption was the whole of the floor would need to be replaced,
0:09:02 > 0:09:05maybe some adjoining timbers will have to go.
0:09:05 > 0:09:08After that it's a relatively straightforward refurbishment.
0:09:08 > 0:09:12New kitchen, new bathroom, couple of walls have got to be knocked down.
0:09:12 > 0:09:15It's relatively straight after that.
0:09:15 > 0:09:17So what are you actually going to do to the property?
0:09:17 > 0:09:19Give me a little bit more detail.
0:09:19 > 0:09:24Well, the idea is to move, what is currently the back bedroom into the front.
0:09:24 > 0:09:29I think we all like our lounges to look out on the garden.
0:09:29 > 0:09:35We're going to split the front lounge up into two bedrooms.
0:09:35 > 0:09:38The kitchen will be left basically where it is,
0:09:38 > 0:09:42we'll knock through into the back room to make it a breakfast area, dining area
0:09:42 > 0:09:45but it'll have an island unit in the middle of the kitchen.
0:09:45 > 0:09:48New boiler and hopefully just refurb up the garden.
0:09:49 > 0:09:54That's a long list and their ability to do it all hinges on what's caused the damage.
0:09:55 > 0:09:57If it is dry rot throughout
0:09:57 > 0:10:01those holes could make a huge hole in the budget.
0:10:01 > 0:10:04# I'm walking the floor over you
0:10:07 > 0:10:11# I can't sleep a wink that is true... #
0:10:11 > 0:10:14I hope they've got a contingency.
0:10:14 > 0:10:17The figure we've allowed for is about £30,000.
0:10:17 > 0:10:21The floor is the biggest factor that we can't really quantify
0:10:21 > 0:10:25at this point in time, so there's some flexibility there
0:10:25 > 0:10:27but we think 30,000 should cover everything.
0:10:27 > 0:10:30But the important thing to do at this moment in time is to get
0:10:30 > 0:10:33the job done properly because there's no point doing the job
0:10:33 > 0:10:35and then having to rip all the things out to go back
0:10:35 > 0:10:37and do the job again at a later date.
0:10:39 > 0:10:43And with David and Neil's experience and their building team's skills,
0:10:43 > 0:10:46I've no doubt it will all be done first time.
0:10:46 > 0:10:51They plan to have it all finished and ready to sell in three to four months.
0:10:51 > 0:10:55They're not 100% sure of timescales as it all depends on the floor.
0:10:55 > 0:10:59What they are sure about is the role they each play.
0:10:59 > 0:11:01Why did you go into property together?
0:11:01 > 0:11:05- This could be a long discussion. We think we're brothers-in-law by marriage.- Ooh!
0:11:05 > 0:11:08- He's married to my wife's sister. - OK, yeah.
0:11:08 > 0:11:11David had got the practical skills to deal with the property,
0:11:11 > 0:11:13my area has always been finance.
0:11:13 > 0:11:15And we got talking one Christmas.
0:11:15 > 0:11:18We were looking to invest in property,
0:11:18 > 0:11:21David was looking to change his career, what he was doing,
0:11:21 > 0:11:24an it seemed a good idea to start from there.
0:11:24 > 0:11:26- Do the partners get involved?- Yeah.
0:11:26 > 0:11:28I mean that's why she came to the auction with me
0:11:28 > 0:11:31to keep me in check really.
0:11:31 > 0:11:33Neil, I wish you all the best. I hope it goes well.
0:11:33 > 0:11:36- Make sure you listen to your partner. - I will.- She'll put you right.
0:11:36 > 0:11:39- David...- Thank you very much. - Make sure it works. Take care.
0:11:39 > 0:11:42David and Neil have bought in a good area.
0:11:42 > 0:11:45As we all know, that's half the battle.
0:11:45 > 0:11:49There is a fair degree of uncertainty on what needs doing
0:11:49 > 0:11:52in this property regards the damp and the layout
0:11:52 > 0:11:56and that may impinge on the £30,000 budget they've given themselves.
0:11:56 > 0:12:00Join us later to find out what happens to this little slice of rural England.
0:12:04 > 0:12:08What I love about East Dulwich is its villagey, suburban feel
0:12:08 > 0:12:10and all its pretty green leafiness.
0:12:10 > 0:12:14It also has a selection of independent shops, restaurants
0:12:14 > 0:12:18as well as plenty of cafes selling home-made cakes and pastries.
0:12:20 > 0:12:24So what can I do while you look around this leafy area?
0:12:24 > 0:12:26Lovely.
0:12:26 > 0:12:28Now where do I start?
0:12:28 > 0:12:30Property isn't cheap here
0:12:30 > 0:12:34but East Dulwich is more affordable than neighbouring Dulwich Village.
0:12:34 > 0:12:37There's plenty of good bus routes...
0:12:39 > 0:12:40SPEAKS WITH MOUTH FULL
0:12:40 > 0:12:44..and you can get to London Bridge train line from the nearby station
0:12:44 > 0:12:46in just 12 minutes.
0:12:46 > 0:12:49Time really flies when you're having fun!
0:12:49 > 0:12:51I've got some work to do now.
0:12:52 > 0:12:55The cake definitely gets a tick in the box
0:12:55 > 0:12:57but what about the property I'm here to see?
0:12:57 > 0:13:02I'm on a fairly busy road but it's pretty, it's tree-lined
0:13:02 > 0:13:05and the shops are literally just a 10-minute walk away.
0:13:05 > 0:13:09No surprise then that this is a desirable place to be.
0:13:09 > 0:13:12But what about the guide price of the property?
0:13:12 > 0:13:17Well, it was a fairly hefty £620,000-£650,000.
0:13:17 > 0:13:21But for that, you do get this.
0:13:21 > 0:13:26A lovely semidetached property, it's spread over four floors
0:13:26 > 0:13:28and it's been divided into three flats.
0:13:28 > 0:13:33Sounds like there's a lot to look around so I'm going to head in and make a start.
0:13:33 > 0:13:36'There's a flat on the ground floor, another on the lower ground
0:13:36 > 0:13:40'and the third flat is split across the two top floors.'
0:13:40 > 0:13:42Oh! The postman's been.
0:13:42 > 0:13:44So, inside.
0:13:44 > 0:13:47It's not as huge as I would have expected.
0:13:47 > 0:13:50The hallway is just, look, a little bit tight.
0:13:50 > 0:13:53You can literally bounce off the walls.
0:13:53 > 0:13:55You've got some stairs leading to the upper flat
0:13:55 > 0:13:59and through here, again, you know, tight spaces.
0:13:59 > 0:14:03You've got a kitchen here, a little bathroom here,
0:14:03 > 0:14:07a bedroom with textured wallpaper.
0:14:07 > 0:14:09Now, let me just tell you, my first ever flat I bought
0:14:09 > 0:14:13had this wallpaper and it is a nightmare to get off
0:14:13 > 0:14:16especially if there is layer, upon layer, upon layer
0:14:16 > 0:14:18which there probably is in here.
0:14:18 > 0:14:22Down this little step, this is interesting. Look.
0:14:23 > 0:14:27It's tight, you've got a big slope here, it's all a little bit,
0:14:27 > 0:14:28you know, to get ground.
0:14:28 > 0:14:32Not an ideal place for the fridge so I would relocate that.
0:14:32 > 0:14:36But you have got a really nice spacious lounge through there.
0:14:36 > 0:14:38It could be quite a nice little flat.
0:14:38 > 0:14:40Let's check out the upstairs one.
0:14:42 > 0:14:45The top floor flat is split over two levels.
0:14:45 > 0:14:48On the first landing there is a kitchen which is a reasonable size
0:14:48 > 0:14:50though I'm not keen on those water pipes
0:14:50 > 0:14:53running all round the room at ceiling height.
0:14:56 > 0:14:59Opposite the kitchen is a decent sized reception room.
0:14:59 > 0:15:01Next to that, a small bathroom.
0:15:01 > 0:15:06And finally, bedroom one is on the other side of the kitchen.
0:15:06 > 0:15:09Onwards and upwards to the room at the top.
0:15:10 > 0:15:13So another flight of stairs
0:15:13 > 0:15:16but it is incredibly bright up here.
0:15:16 > 0:15:18Disappointing space though, don't you agree?
0:15:18 > 0:15:22Look, you've got all the sloping ceiling business going on again.
0:15:22 > 0:15:24Not much you can do about that.
0:15:26 > 0:15:29But I did see a little doorway through here. I'm just wondering...
0:15:31 > 0:15:34Yes, you could potentially knock through here,
0:15:34 > 0:15:36apply for planning permission,
0:15:36 > 0:15:38you could put a nice dormer window there.
0:15:38 > 0:15:41Really open up the space up so you've got a great master bedroom.
0:15:41 > 0:15:44You could put a ensuite shower room in the corner.
0:15:44 > 0:15:45I really think that would work well
0:15:45 > 0:15:48and this would be a fantastic master bedroom.
0:15:50 > 0:15:53Back down now to the lower ground floor, one-bedroom flat
0:15:53 > 0:15:55which has the security shutters.
0:15:57 > 0:16:00It does have its own entrance at the side of the house
0:16:00 > 0:16:02which takes you into a large hallway.
0:16:02 > 0:16:05There's the bathroom on your left as you enter.
0:16:09 > 0:16:11Opposite that is the kitchen.
0:16:12 > 0:16:14Next to which is the lounge.
0:16:18 > 0:16:21And on the opposite side of the hall, is the bedroom.
0:16:23 > 0:16:27The basement flat might be very dark and dingy at the moment
0:16:27 > 0:16:31but actually it does have some positives as well.
0:16:31 > 0:16:33First of all, it has its own front door
0:16:33 > 0:16:36which actually makes it a maisonette.
0:16:36 > 0:16:40Secondly, it has direct access out into this garden.
0:16:40 > 0:16:44Yes, it might be hard to imagine now but once you get rid of these
0:16:44 > 0:16:47and the garden's all tidied up you'll have lovely views
0:16:47 > 0:16:51and I think it could even become the nicest flat out of all of them.
0:16:52 > 0:16:56We called in a local estate agent for his opinions and valuations.
0:16:56 > 0:17:00Would it be an idea to make it one big house?
0:17:00 > 0:17:02Having a look round this property,
0:17:02 > 0:17:05I would keep this as three flats rather than one house.
0:17:05 > 0:17:08I think it would cost too much to put it back into a house and I think
0:17:08 > 0:17:11it would be financially beneficial to keep it as three flats.
0:17:11 > 0:17:14Is parking going to be an issue with the three dwellings?
0:17:14 > 0:17:17It is possible to create off-street parking here
0:17:17 > 0:17:20and with such a busy road I would recommend doing that.
0:17:20 > 0:17:21OK, flats it is then.
0:17:22 > 0:17:25What might the values of those flats be, and given the guide price
0:17:25 > 0:17:30of £620,000-£650,000, is there any room for profit?
0:17:32 > 0:17:37The basement flat would achieve an approximate figure of £325,000.
0:17:39 > 0:17:45With the ground floor flat, that would achieve a region of £375,000.
0:17:46 > 0:17:49And the top floor flat would achieve anywhere
0:17:49 > 0:17:53from £425-£450,000.
0:17:53 > 0:17:57If you increase the size of the bedroom in the top floor flat,
0:17:57 > 0:18:03you would look to achieve somewhere in the region of £465,000-475,000.
0:18:03 > 0:18:05The agent thinks as a semidetached house
0:18:05 > 0:18:08this would be worth a maximum of £1 million.
0:18:08 > 0:18:14So with the top total for three flats coming in at £1,175,000,
0:18:14 > 0:18:16that looks like the better option.
0:18:19 > 0:18:23So, there are a few little tweaks I would make here and at the moment
0:18:23 > 0:18:26some of the rooms are a little treacherous for tall people.
0:18:26 > 0:18:30This is a substantial property that works well as flats
0:18:30 > 0:18:34and once renovated, there could be some serious money to be made here.
0:18:34 > 0:18:37Let's see who agreed when we went to auction.
0:18:39 > 0:18:4396. We're moving into East Dulwich.
0:18:43 > 0:18:45A semidetached building, three flats subject to addendum.
0:18:45 > 0:18:49I know I've got phone bidding. Starting at 600,000.
0:18:49 > 0:18:53A bid of six please? 600,000 straight away, gentleman there.
0:18:53 > 0:18:55610, anywhere? 600, I'm bid.
0:18:55 > 0:18:57So the bids build slowly and steadily.
0:18:57 > 0:19:02We rejoin just at the point it's about to meet the £1 million mark.
0:19:02 > 0:19:04That guide is a distant memory.
0:19:04 > 0:19:07995. Your pleasure. A million at the back, sir.
0:19:07 > 0:19:09£1 million I'm bid, and five.
0:19:09 > 0:19:15Passing the £1 million mark, we rejoin again at £1,030,000.
0:19:15 > 0:19:19One million and thirty. Is that right? I think that's right.
0:19:19 > 0:19:21So one million and forty from...
0:19:21 > 0:19:24That's 35 is it, sir? 35. And 40, sir.
0:19:25 > 0:19:28And forty. And five? 45. And...
0:19:28 > 0:19:29..50?
0:19:31 > 0:19:34And 50. 55? No. So I've got one million and fifty.
0:19:34 > 0:19:3655.
0:19:36 > 0:19:3960, sir, I'm bid. 65? No.
0:19:39 > 0:19:41£1,060,000, first time.
0:19:41 > 0:19:44Second time, third and last time at £1,060,000.
0:19:44 > 0:19:46All done. I have...
0:19:46 > 0:19:50yours in front of me, £1,060,000. Thank you.
0:19:52 > 0:19:57The successful bidder was Edgar, a professional pianist and violinist.
0:19:57 > 0:20:02His bid of £1,060,000 was on behalf of a property and music company
0:20:02 > 0:20:07owned by him, his business partner, Pavel, and Edgar's father, Slava.
0:20:09 > 0:20:11I met Edgar and Pavel back at the house.
0:20:11 > 0:20:16It's their company's fifth purchase in its first year of trading.
0:20:16 > 0:20:19Guys, lovely to meet you both. Edgar, Pavel, lovely to meet you.
0:20:19 > 0:20:23What I want to know is, why did you want to buy this property?
0:20:23 > 0:20:26Oh, my dad is involved in the property development business
0:20:26 > 0:20:28for the last 15 years.
0:20:28 > 0:20:31We've done some research, spoke to Pavel, showed him this property.
0:20:31 > 0:20:33I went to the auction
0:20:33 > 0:20:35and won this lot.
0:20:35 > 0:20:36Had you set a limit for this building?
0:20:36 > 0:20:39- Oh, that's something that was actually £1 million.- Ah!
0:20:39 > 0:20:40So we paid 60,000 more.
0:20:40 > 0:20:42We overpaid a bit,
0:20:42 > 0:20:44however, it was a strategic decision
0:20:44 > 0:20:47because this house has a lot of potential
0:20:47 > 0:20:50and even if the prices will down, and bubble will explode,
0:20:50 > 0:20:55people will still have to find a place to live.
0:20:55 > 0:20:57Lots of potential and lots of choices.
0:20:57 > 0:21:00The agent's choice was to keep it as three flats,
0:21:00 > 0:21:02but what have the chaps decided?
0:21:02 > 0:21:05We might be able to change it into one unit,
0:21:05 > 0:21:07because there is a massive garden.
0:21:07 > 0:21:10And then it adds more value.
0:21:10 > 0:21:14People from abroad are dreaming about buying a house in London.
0:21:14 > 0:21:16We have a 50/50 scenario, now.
0:21:16 > 0:21:18We haven't decided.
0:21:18 > 0:21:20But both ways is going to be a good project.
0:21:20 > 0:21:23And what about any extension potential?
0:21:23 > 0:21:25Because you have a flat downstairs. How about extending that flat?
0:21:25 > 0:21:29Our architect is already making some decisions.
0:21:29 > 0:21:31We are planning to have the biggest extension possible.
0:21:31 > 0:21:33So whatever happens here, guys,
0:21:33 > 0:21:36you are going to maximise the potential of this building?
0:21:36 > 0:21:38Be it a house, be it three flats?
0:21:38 > 0:21:42Yes, we are going to do some loft conversion, as well, in the rear garden outside.
0:21:42 > 0:21:45Well, that'll be fantastic. There's a lot of spare space in the roof,
0:21:45 > 0:21:48if you can extend through into that space.
0:21:48 > 0:21:51The boys are estimating a seven-month timescale for the work,
0:21:51 > 0:21:54but haven't yet decided what they're going to do.
0:21:54 > 0:21:56Structural work in the loft
0:21:56 > 0:21:58and extensions will add to the internal work,
0:21:58 > 0:22:01like the awkward shapes in the ground-floor flat
0:22:01 > 0:22:03caused by the stairs,
0:22:03 > 0:22:06which Edgar bumped his head on earlier!
0:22:06 > 0:22:09That is why we are going to move the stairs somewhere else.
0:22:09 > 0:22:11We are going to take them into this room.
0:22:11 > 0:22:14It's a rather unusual place to put stairs, anyway, isn't it?
0:22:14 > 0:22:17Correct, yes. We will be thinking about
0:22:17 > 0:22:20- moving the stairs somewhere. Here, probably this room.- OK.
0:22:20 > 0:22:22We haven't made any decision yet.
0:22:22 > 0:22:25So if I ask you what is your budget, can you answer that question?
0:22:25 > 0:22:27Yes, we can.
0:22:27 > 0:22:29We are looking around £40,000 for each flat.
0:22:29 > 0:22:32And if you convert it into a house?
0:22:32 > 0:22:34- Into a family home? - £140,000.
0:22:34 > 0:22:37If you renovate the ground floor flat and you get an extension,
0:22:37 > 0:22:40how much do you think a flat downstairs like that
0:22:40 > 0:22:42would be worth on the open market?
0:22:42 > 0:22:45I think it'll be worth about 500,000.
0:22:45 > 0:22:48- Really?- Yes. So this is our target, ideally.
0:22:48 > 0:22:51You're hoping £500,000 for the flat downstairs?
0:22:51 > 0:22:56I think this flat, we are looking for £450,000.
0:22:56 > 0:22:58OK, £450,000.
0:22:58 > 0:23:01And what about the upstairs flat with lots of stairs?
0:23:01 > 0:23:05We are thinking about 550,000.
0:23:05 > 0:23:08So really you do hope to have a decent profit at the end of it?
0:23:08 > 0:23:11Yes, we are looking, ideally, for £300,000.
0:23:13 > 0:23:17But the agent valuations are £330,000 lower than theirs.
0:23:18 > 0:23:20I know their company targets
0:23:20 > 0:23:23international Russian-speaking clients for their London properties,
0:23:23 > 0:23:27I just hope they are right about their market in this case.
0:23:27 > 0:23:30So how much involvement are you two actually going to have
0:23:30 > 0:23:32in this property?
0:23:32 > 0:23:34Well, a lot.
0:23:34 > 0:23:36Most of the project management work
0:23:36 > 0:23:38will be done by Ed's father.
0:23:38 > 0:23:41Me and Ed, we negotiate with the client,
0:23:41 > 0:23:44we also negotiate with the architects and designers.
0:23:46 > 0:23:49All the financing issues would be on my side.
0:23:49 > 0:23:52My job is to go to the auction, to place correct price,
0:23:52 > 0:23:55to do all the investigation before placing a bid
0:23:55 > 0:23:57and to call Pavel.
0:23:57 > 0:23:59Guys, I'm really looking forward to seeing the outcome,
0:23:59 > 0:24:01be it three flats or a family house.
0:24:01 > 0:24:05- Congratulations.- Thank you. - Thank you very much.
0:24:05 > 0:24:08Edgar and Pavel have smashed through the £1 million barrier
0:24:08 > 0:24:11to secure this property.
0:24:11 > 0:24:12Did they pay too much?
0:24:12 > 0:24:16Well, I think they're overestimating what they could achieve here.
0:24:16 > 0:24:19Will this project bring music to their ears?
0:24:19 > 0:24:22Join me later in the show and you can find out what happens.
0:24:24 > 0:24:27Still to come - more surprises in the Derby mid-terrace.
0:24:28 > 0:24:30Er... Oh!
0:24:30 > 0:24:32Right...
0:24:32 > 0:24:35Well, this is where the kitchen should be.
0:24:35 > 0:24:38The boys at the flat conversion in East Dulwich strike gold
0:24:38 > 0:24:40at the bottom of the garden.
0:24:40 > 0:24:43Obviously, that will get much more value.
0:24:47 > 0:24:49We return now to Ashley,
0:24:49 > 0:24:52the quaint and quiet Shropshire village
0:24:52 > 0:24:56where I saw this two-bed detached bungalow with problems afoot.
0:24:56 > 0:24:58Let's hope it's not the dreaded dry rot.
0:24:58 > 0:25:01Now, I don't want to go too close to this.
0:25:01 > 0:25:02I'm pretty... Yes, there you go.
0:25:02 > 0:25:06Paying £125,000 for the privilege of taking on the problem
0:25:06 > 0:25:10were brothers-in-law David, on the left, and Neil.
0:25:10 > 0:25:13Their plan - to refurbish and resell.
0:25:13 > 0:25:15A lot of it, we think, is just ventilation.
0:25:15 > 0:25:18Hopefully, with a bit of airing, ventilation bricks...
0:25:18 > 0:25:20under the floor,
0:25:20 > 0:25:23it will clear a lot of it, though some of the timbers are rotted...
0:25:23 > 0:25:25We don't quite know how much it's going to cost us,
0:25:25 > 0:25:29but, after that, it's a relatively straightforward refurbishment.
0:25:29 > 0:25:31New kitchen, new bathroom,
0:25:31 > 0:25:34a couple of walls have got to be knocked down,
0:25:34 > 0:25:36but it's relatively straight after that.
0:25:36 > 0:25:39And there was a planned reshuffle of the rooms.
0:25:39 > 0:25:42The idea is to move what is currently the back bedroom
0:25:42 > 0:25:44into the front.
0:25:44 > 0:25:47We're going to split the front lounge up
0:25:47 > 0:25:49into two bedrooms.
0:25:49 > 0:25:51The kitchen will be left basically where it is.
0:25:51 > 0:25:54We'll knock through into the back room,
0:25:54 > 0:25:56but it will have an island unit in the middle of the kitchen.
0:25:56 > 0:26:00New boiler and hopefully just refurb up the garden.
0:26:00 > 0:26:02To see if all this shuffling came up trumps,
0:26:02 > 0:26:04we're back just over three months later.
0:26:04 > 0:26:06Let's take a look.
0:26:06 > 0:26:09MUSIC: Stronger by Clean Bandit
0:26:09 > 0:26:10# I wanted to be stronger!
0:26:10 > 0:26:13# I wanted to be everything for you
0:26:14 > 0:26:16# If I could be stronger
0:26:16 > 0:26:21# Would you believe that I could love you like you want me to? #
0:26:22 > 0:26:26The neutral colour scheme creates a spacious and contemporary feel
0:26:26 > 0:26:28and really brightens up the place.
0:26:40 > 0:26:42As for the spore-ridden floor I jumped on...
0:26:42 > 0:26:45# I want it to be stronger
0:26:46 > 0:26:50# I want it to be everything for you
0:26:51 > 0:26:53# If I could be stronger
0:26:53 > 0:26:57# Would you believe that I could love you like you want me to? #
0:26:59 > 0:27:02Reorganising the internal space has certainly paid dividends.
0:27:04 > 0:27:08There's a lovely big lounge with patio doors out to the garden.
0:27:08 > 0:27:11And they did create that third bedroom.
0:27:11 > 0:27:15Well, there's no denying that things look a lot better than they used to.
0:27:15 > 0:27:18So did they get to the source of those rotting floorboards?
0:27:20 > 0:27:23We found out that it had been caused by a leaking central heating system.
0:27:23 > 0:27:26There was a pipe there that was just dripping away constantly
0:27:26 > 0:27:28and with it being concrete underneath,
0:27:28 > 0:27:32it had just run right the way across the floor, underneath.
0:27:32 > 0:27:36There was also various leaks in the roof which allowed water to come in.
0:27:36 > 0:27:39And then the whole place was just sealed up tighter than a drum.
0:27:39 > 0:27:41We took the roof off,
0:27:41 > 0:27:43replaced the felt, the batons,
0:27:43 > 0:27:44put the roof back on,
0:27:44 > 0:27:48renewed the flat roof at the back, which was also leaking slightly.
0:27:48 > 0:27:50We've installed trickle vents,
0:27:50 > 0:27:52we've renewed all the floors,
0:27:52 > 0:27:54we've renewed the whole central heating system,
0:27:54 > 0:27:56renewed the electrics.
0:27:56 > 0:27:58We've also replastered throughout.
0:27:58 > 0:28:00It's had new kitchen, new bathroom,
0:28:00 > 0:28:03done a tremendous amount of work in the garden -
0:28:03 > 0:28:05patios, levelling things out.
0:28:05 > 0:28:07That's about it, really.
0:28:09 > 0:28:10You make it sound so easy, David.
0:28:10 > 0:28:13How was the division of labour worked out, though?
0:28:13 > 0:28:17The work was allocated on the basis that he did 98% of it
0:28:17 > 0:28:20and I tried not to do the other 2%!
0:28:20 > 0:28:23I have very few practical skills,
0:28:23 > 0:28:25so I keep out of the way.
0:28:25 > 0:28:28My background is in finance,
0:28:28 > 0:28:29so I sort that out
0:28:29 > 0:28:32and leave David to do the jobs that he can get on with.
0:28:32 > 0:28:35OK, Neill, you mention the thorny issue of money.
0:28:35 > 0:28:38How did that side of the job work out?
0:28:38 > 0:28:40The budget was 30,
0:28:40 > 0:28:43but we'd allowed a contingency of up to 40,
0:28:43 > 0:28:45purely and simply because we didn't really know
0:28:45 > 0:28:48what we were going to find with the floorboards.
0:28:48 > 0:28:50We had to have quite a variation.
0:28:50 > 0:28:53The budget... We've stayed within that, but we're at the upper end.
0:28:53 > 0:28:55We're close to the 40,000 mark.
0:28:55 > 0:28:57And it all went pretty smoothly.
0:28:57 > 0:29:00There wasn't a time when we didn't have anybody on site.
0:29:00 > 0:29:03Everybody virtually fell in, knitted in pretty well.
0:29:03 > 0:29:05Judging by the list of works,
0:29:05 > 0:29:08I think that's as good a result as you can get.
0:29:08 > 0:29:09And now it's finished...
0:29:09 > 0:29:12The property will be going for sale almost immediately.
0:29:12 > 0:29:15We never had any intentions of renting it out.
0:29:15 > 0:29:18It was always going to be a property that was going to be put back onto the market,
0:29:18 > 0:29:21because the rental values wouldn't be strong enough for us
0:29:21 > 0:29:23to keep it for our own portfolio.
0:29:25 > 0:29:27Why don't we call in two estate agents
0:29:27 > 0:29:29to give us some opinions and valuations?
0:29:30 > 0:29:34Being local, they'll have a handle on the market around here.
0:29:34 > 0:29:37Let's start with the agent who saw it before its refurbishment...
0:29:38 > 0:29:40Changes are great.
0:29:40 > 0:29:42The new layout works really well
0:29:42 > 0:29:45with the living accommodation at the back of the property,
0:29:45 > 0:29:47rather than a mismatch of bedrooms
0:29:47 > 0:29:48and living accommodation.
0:29:48 > 0:29:50The finish is fantastic.
0:29:50 > 0:29:53It's nice and neutral, modern.
0:29:53 > 0:29:55The fact that the bungalow's been turned
0:29:55 > 0:29:57from a two to a three-bedroom bungalow
0:29:57 > 0:29:59is a very good idea.
0:29:59 > 0:30:02There are a few two-bedroom bungalows down here,
0:30:02 > 0:30:04third bedrooms a lot of people do like,
0:30:04 > 0:30:07as they can have that third bedroom as a dining room or a study.
0:30:07 > 0:30:09No matter what it's intended for,
0:30:09 > 0:30:12when downsizing, extra space can be invaluable.
0:30:13 > 0:30:16Neil and David have an extensive portfolio of rental properties,
0:30:16 > 0:30:19but they have no intention of renting this one out.
0:30:19 > 0:30:23So what sort of profit are they likely to make by selling?
0:30:23 > 0:30:26The guys would need to exceed £165,000
0:30:26 > 0:30:28they've spent so far.
0:30:29 > 0:30:32If the property were to be on the open market,
0:30:32 > 0:30:34I would expect it to achieve somewhere in the region
0:30:34 > 0:30:36of £180,000-£190,000.
0:30:36 > 0:30:38To go on the market anywhere between
0:30:38 > 0:30:41£185,000-£195,000.
0:30:42 > 0:30:44Which means, if we take the higher valuations,
0:30:44 > 0:30:48a potential profit of between £25,000-£30,000
0:30:48 > 0:30:50minus the usual taxes and expenses.
0:30:52 > 0:30:54We'd always banked on a final value
0:30:54 > 0:30:57of a round about the 185-190
0:30:57 > 0:31:00and that falls bang in line with what we were expecting
0:31:00 > 0:31:02and what we budgeted on.
0:31:02 > 0:31:07Their first bungalow refurbishment looks like it should return a profit.
0:31:07 > 0:31:09So would they do it again?
0:31:09 > 0:31:11Yes, if you can get a bungalow in the right area,
0:31:11 > 0:31:13they always seem to be popular.
0:31:13 > 0:31:16But, yes, we've been looking another couple for a forthcoming auction.
0:31:16 > 0:31:19So, yes, could form part of the future plans.
0:31:19 > 0:31:22And it suits me cos you don't have to take bathrooms upstairs
0:31:22 > 0:31:24and plasterboard upstairs and plaster
0:31:24 > 0:31:27and leave your tools upstairs and have to walk back downstairs.
0:31:27 > 0:31:29Suits me.
0:31:29 > 0:31:30Well, good luck, chaps.
0:31:30 > 0:31:33And here's hoping you don't have to take off and
0:31:33 > 0:31:35RE-BUNG-A-LOW roof back on the next one!
0:31:40 > 0:31:43BLOCKBUSTERS THEME TUNE
0:31:43 > 0:31:45A quick quiz now.
0:31:45 > 0:31:47My house today is in the East Midlands,
0:31:47 > 0:31:49where there's a large variety of housing stock.
0:31:49 > 0:31:51From 1930s semis...
0:31:53 > 0:31:54..to new townhouses...
0:31:56 > 0:31:58..conversions from past to present...
0:31:59 > 0:32:00..tightly packed semis...
0:32:00 > 0:32:03and more humble terraces...
0:32:03 > 0:32:04Which city am I close to?
0:32:04 > 0:32:07Yes! It's Derby!
0:32:07 > 0:32:08And I'm in the Normanton suburb.
0:32:11 > 0:32:14Well, about a mile and a half from the city centre
0:32:14 > 0:32:16is the property I'm here to see.
0:32:16 > 0:32:20And it is a traditional two-bedroomed mid-terrace.
0:32:20 > 0:32:23Now, these kinds of places make great potential investment.
0:32:23 > 0:32:25So, let's have a look.
0:32:25 > 0:32:28£38,000 plus was the guide price.
0:32:28 > 0:32:33So of the myriad possible layouts of a terrace,
0:32:33 > 0:32:35what has this one got?
0:32:35 > 0:32:37Well, I like this design.
0:32:37 > 0:32:41You come through the door NOT into your living room,
0:32:41 > 0:32:43but into a little corridor, so that's really good.
0:32:43 > 0:32:47Also it gives me the idea that this is a slightly wider terrace than some,
0:32:47 > 0:32:50which again is good news.
0:32:50 > 0:32:52Front room there, looks to be in...
0:32:52 > 0:32:55well, it's work in progress kind of condition, isn't it?
0:32:55 > 0:32:58At least somebody's stripped off all the wallpaper for you,
0:32:58 > 0:33:00though, obviously, looks like the walls
0:33:00 > 0:33:02are all going to have to be skimmed with plaster.
0:33:02 > 0:33:03Now there's an interesting thing...
0:33:06 > 0:33:09That's an adjoining door to next door.
0:33:11 > 0:33:12What's that all about?
0:33:12 > 0:33:15I think I just knocked and I think somebody might be coming!
0:33:15 > 0:33:16Better move on quick.
0:33:16 > 0:33:18Sorry, sorry!
0:33:18 > 0:33:20Nothing!
0:33:20 > 0:33:22Clearly you're going to have to block that up.
0:33:22 > 0:33:25It's not really ideal, is it?
0:33:25 > 0:33:28And also, more seriously, it's a bit of a fire issue -
0:33:28 > 0:33:30if there's a fire next door and you haven't got a wall between you,
0:33:30 > 0:33:33then that's obviously going to spread through quite quickly.
0:33:33 > 0:33:35As you were!
0:33:35 > 0:33:38Anyway, through to the rear lounge.
0:33:38 > 0:33:41It's a nice size, high ceilings, big open fireplace.
0:33:41 > 0:33:42You could have some fun with that.
0:33:42 > 0:33:44Oh...
0:33:44 > 0:33:46Right...
0:33:46 > 0:33:49Well, this is where the kitchen should be.
0:33:49 > 0:33:52This is where the kitchen isn't.
0:33:52 > 0:33:53That's not good.
0:33:53 > 0:33:56Money to be spent here, then, and obviously,
0:33:56 > 0:33:58if you're looking at mortgaging this place,
0:33:58 > 0:34:01that, oh, yes, and that adjoining door...
0:34:01 > 0:34:03need to be sorted out!
0:34:03 > 0:34:06For the majority of lenders to grant a mortgage, a property has to be habitable.
0:34:06 > 0:34:09MUSIC: The Good, The Bad And The Ugly by Ennio Morricone
0:34:09 > 0:34:11Things that would deem it uninhabitable
0:34:11 > 0:34:15include not having a functioning kitchen, bathroom and toilet.
0:34:15 > 0:34:19However, some specialist lenders may grant a self build mortgage.
0:34:19 > 0:34:21Otherwise, it's cash only buyers.
0:34:25 > 0:34:28So upstairs and bathroom - total refurb required,
0:34:28 > 0:34:30but at least it's in the right place at the top of the stairs.
0:34:30 > 0:34:32It's a nice size.
0:34:32 > 0:34:36And then, two bedrooms, just two, but they are at least a good size.
0:34:36 > 0:34:37One at the back, there...
0:34:37 > 0:34:39Watch out for the floorboards!
0:34:39 > 0:34:40.. and another one at the front.
0:34:40 > 0:34:44So you've got a reasonable amount of space and I like the proportions.
0:34:44 > 0:34:47Obviously, major refurb required.
0:34:47 > 0:34:49And...
0:34:50 > 0:34:54A few bits of very, very curious damage...
0:34:54 > 0:34:56Looks like fire-damaged bit of wood, there,
0:34:56 > 0:34:59but I can't see any other major signs of fire damage,
0:34:59 > 0:35:02so I do not know at all what's going on there.
0:35:02 > 0:35:05I am, for once, at a loss...
0:35:05 > 0:35:07MUSIC RESUMES
0:35:07 > 0:35:10..especially as the corresponding fireplace and chimney stack in the front room
0:35:10 > 0:35:13shows no sign of a chimney fire.
0:35:13 > 0:35:16But I wouldn't be lighting a fire here
0:35:16 > 0:35:19until the property's chimneys were checked out.
0:35:19 > 0:35:22Coming through the kitchen that isn't a kitchen,
0:35:22 > 0:35:24takes you out the back.
0:35:24 > 0:35:28Well, when you step out the back of these kind of terraced properties,
0:35:28 > 0:35:30you never know quite what you're going to find.
0:35:30 > 0:35:33Sometimes it is just a little courtyard area like this.
0:35:33 > 0:35:35Sometimes there's a rear alley,
0:35:35 > 0:35:37but the good news in this case,
0:35:37 > 0:35:39a really nice sized family garden.
0:35:39 > 0:35:43A little outbuilding which you could renovate, I guess,
0:35:43 > 0:35:46get rid of some of the rubbish. But that is a real bonus.
0:35:46 > 0:35:48The other thing, when you come out here, though,
0:35:48 > 0:35:51you do see a few signs of some fairly simple and basic maintenance
0:35:51 > 0:35:52that needs to be done,
0:35:52 > 0:35:56particularly with the guttering and things like this, this soil downpipe here.
0:35:56 > 0:35:58You should definitely get those sorted.
0:35:58 > 0:36:01But I like what I'm seeing here very much.
0:36:01 > 0:36:04But a big garden and the accompanying maintenance
0:36:04 > 0:36:07are not necessarily good news for a landlord.
0:36:07 > 0:36:10Let's hear what a local property expert makes
0:36:10 > 0:36:13of this two-bed Normanton Terrace.
0:36:13 > 0:36:16I would say the positives of a property like this
0:36:16 > 0:36:17are it truly is a blank canvas.
0:36:17 > 0:36:20You are able to put your mark on it and make of it what you will.
0:36:20 > 0:36:24It's a good solid house, somebody has ripped all the fixtures and fittings out,
0:36:24 > 0:36:27so they've taken care of some of that work for you.
0:36:27 > 0:36:29It's got a good sized rear garden
0:36:29 > 0:36:31so there is a nice outside space to enjoy.
0:36:31 > 0:36:33And it's got a lot going for it.
0:36:33 > 0:36:34So much for the good
0:36:34 > 0:36:36and we've seen the ugly.
0:36:36 > 0:36:37So what about the bad?
0:36:37 > 0:36:40I would say the negative of a property like this
0:36:40 > 0:36:42is that there is no off-road parking,
0:36:42 > 0:36:45so you would have to park in adjoining neighbouring streets.
0:36:45 > 0:36:46He's right.
0:36:46 > 0:36:49This street and a number of adjoining streets
0:36:49 > 0:36:52have the indelible stamp of parking peril.
0:36:52 > 0:36:55But, given the guide price of £38,000 plus,
0:36:55 > 0:36:57what it's worth when done up?
0:36:57 > 0:37:00I would say that once renovated to a good standard this property -
0:37:00 > 0:37:02on the current market -
0:37:02 > 0:37:05would achieve somewhere in the region of £75,000.
0:37:05 > 0:37:08So... Taking everything into account, what about rental?
0:37:08 > 0:37:11I would say that if this property were offered to the rental market
0:37:11 > 0:37:13in a good condition,
0:37:13 > 0:37:15it would achieve £480 per calendar month.
0:37:17 > 0:37:21Well, being right on the main road is a bit of an issue for this property.
0:37:21 > 0:37:22But apart from that,
0:37:22 > 0:37:26what you've got here is a pretty solid Derby terraced house.
0:37:26 > 0:37:29And, with a bit of effort,
0:37:29 > 0:37:31could make someone a really nice home
0:37:31 > 0:37:33or a good rental opportunity.
0:37:33 > 0:37:35Let's see who bought it when it went under the hammer...
0:37:37 > 0:37:39Lot number one, here in Derby.
0:37:39 > 0:37:42It's a two-bedroom traditional terraced house
0:37:42 > 0:37:47that needs a full scheme of modernisation and improvement.
0:37:47 > 0:37:48It's on a guide of 38 plus.
0:37:48 > 0:37:51Who's got 35 to start me?
0:37:51 > 0:37:5435? Thank you. I've taken your bid, sir, at 35,000.
0:37:54 > 0:37:5736 is bid on the aisle. 37 here.
0:37:57 > 0:38:0038. 38, 39. I've two of you together.
0:38:00 > 0:38:0240,000.
0:38:02 > 0:38:0441 behind you. So 41.
0:38:04 > 0:38:0642? 42.
0:38:06 > 0:38:10Well, there's plenty of interest in this first lot of the day
0:38:10 > 0:38:13with new bidders springing up all round the room.
0:38:13 > 0:38:16We rejoin the bidding at £55,000.
0:38:16 > 0:38:18At 55... 56.
0:38:18 > 0:38:2156, I've got a new bidder. 56, 500?
0:38:21 > 0:38:23He shakes his head.
0:38:23 > 0:38:26At £56,000 then. All done?
0:38:26 > 0:38:2956,500. 57. 57,500?
0:38:31 > 0:38:32Sure?
0:38:32 > 0:38:34At £57,000, once.
0:38:35 > 0:38:38Twice, third opportunity.
0:38:38 > 0:38:40Sold at 57,000, thank you.
0:38:40 > 0:38:43And if the successful bidder looks familiar
0:38:43 > 0:38:46it's because we've met Bobby twice before.
0:38:46 > 0:38:49The first time was donkey's years ago
0:38:49 > 0:38:53at this Grade II-listed Elizabethan manor house.
0:38:53 > 0:38:55Then again when advising his friend
0:38:55 > 0:38:58on this two-up, two-down terrace in Derby.
0:38:58 > 0:39:01We've come down a peg here slightly. It's not quite Elizabethan, is it?
0:39:01 > 0:39:03No, no.
0:39:04 > 0:39:07The terrace required a different skills set
0:39:07 > 0:39:09than the Grade II-listed manor.
0:39:09 > 0:39:12But nevertheless it was a profitable exercise,
0:39:12 > 0:39:15partly down to Bobby's spending philosophy.
0:39:15 > 0:39:17I'm a bit of a Scrooge.
0:39:17 > 0:39:21I don't think a lot of money should be spent on this particular project.
0:39:21 > 0:39:24I met Bobby to find out if he is still a thrifty spender
0:39:24 > 0:39:28at his latest portfolio addition which he secured for 57,000.
0:39:29 > 0:39:32- Bobby, good to see you.- And you. - In fact, to see you again.
0:39:32 > 0:39:34What attracted you to this house?
0:39:34 > 0:39:37Well, there were a number of properties in the auction
0:39:37 > 0:39:38we were interested in.
0:39:38 > 0:39:42This was lot number one so, wanted something where we needed to
0:39:42 > 0:39:46get quite a bit of work done to it. This obviously fits the bill.
0:39:47 > 0:39:49And bought it, simple as that.
0:39:49 > 0:39:52With a view to doing it up to selling it on or...?
0:39:52 > 0:39:54- To rent it out.- OK. - No plans to sell it.
0:39:54 > 0:39:58First thing, it doesn't have a kitchen which probably makes it unmortgageable.
0:39:58 > 0:40:01That put you in a reasonable position if you are a cash buyer.
0:40:01 > 0:40:03I suppose so, I didn't really think of it at the time,
0:40:03 > 0:40:05but you are right.
0:40:05 > 0:40:08The bathroom isn't that fantastic either nor is the rest of the house.
0:40:08 > 0:40:10At least Bobby's realistic.
0:40:10 > 0:40:13What is he planning for this place?
0:40:13 > 0:40:17We'll introduce a kitchen. The room is there but not the kitchen.
0:40:17 > 0:40:19We'll do that.
0:40:19 > 0:40:21We'll renovate the rest of the property in terms of
0:40:21 > 0:40:24change the bathroom, introduce a central heating system.
0:40:24 > 0:40:27There was one originally but it has been ripped apart.
0:40:27 > 0:40:31- New flooring, redecorate, replaster.- OK.
0:40:31 > 0:40:34You keep on talking about "we", who is "we"?
0:40:34 > 0:40:36I don't like to say it is just me.
0:40:36 > 0:40:39- So you're getting builders in to do it, basically?- Yes.
0:40:39 > 0:40:41- What budget?- I think...
0:40:41 > 0:40:457,000 8,000. That should do it.
0:40:45 > 0:40:48- Right. Quite tight. - It is tight but it is doable.
0:40:49 > 0:40:51What about timescale?
0:40:52 > 0:40:55- Hopefully about four weeks.- Wow. - Maybe a little less if we're lucky.
0:40:55 > 0:40:58Wow! A lot of work to do in four weeks.
0:40:58 > 0:41:01- Have you got people starting this afternoon?- Tomorrow.
0:41:02 > 0:41:05And how hands-on will you be?
0:41:05 > 0:41:08I will bring the materials here and then pay the bills.
0:41:08 > 0:41:12- It benefits from a huge garden. - Yes.- Plans for that?
0:41:12 > 0:41:17It would be nice to make it look more of a garden rather than an open space.
0:41:17 > 0:41:22'Yes, it's presently a very brown open-space devoid of plant life.'
0:41:23 > 0:41:26# I beg your pardon
0:41:26 > 0:41:29# I never promised you a rose garden
0:41:30 > 0:41:32# Along with the sunshine
0:41:33 > 0:41:38# There's got to be a little rain sometime. #
0:41:38 > 0:41:40- Roof and everything like that OK? - Roof is sound.
0:41:40 > 0:41:44The windows are sound, the front door, backdoor, they are all OK as well.
0:41:44 > 0:41:47What about flooring? It is... It needs to be redone.
0:41:47 > 0:41:49What are you planning to put on the floors?
0:41:49 > 0:41:51Laminate flooring downstairs,
0:41:51 > 0:41:54probably the same upstairs apart from the bathroom.
0:41:54 > 0:41:59The floor in the kitchen is tiled, I think it may be OK to stay as it is.
0:41:59 > 0:42:02The room that we are in now, may bring the floor up, may not.
0:42:02 > 0:42:04We'll have to see.
0:42:04 > 0:42:08What's going on with the door in the hallway, do you think?
0:42:08 > 0:42:11There is a connecting door to the property next-door.
0:42:11 > 0:42:13I'm not sure what the set-up was.
0:42:13 > 0:42:17I would've thought at some stage there was joint ownership
0:42:17 > 0:42:19between this property and next door.
0:42:19 > 0:42:21We will just brick that up and let the neighbours know
0:42:21 > 0:42:24when they hear the noise what is happening.
0:42:24 > 0:42:26Ah, yes, best do that.
0:42:26 > 0:42:29I had a narrow escape earlier with my soft tap.
0:42:29 > 0:42:30# I hear you knocking
0:42:32 > 0:42:34# But you can't come in... #
0:42:36 > 0:42:40- Going back to the auction?- Yes, yes, in a few weeks' time again.
0:42:40 > 0:42:43- Oh, really?- Yes.- Did you enjoy it? How was the auction for this one?
0:42:43 > 0:42:47It's been good. We've bought three properties from this auction.
0:42:47 > 0:42:49- So we were successful, I think. - Congratulations.
0:42:49 > 0:42:51- And good luck with it. - Thank you very much.
0:42:51 > 0:42:54- We look forward to seeing how you get on.- Thanks.
0:42:56 > 0:43:00So Bobby embarking on another property renovation project.
0:43:00 > 0:43:04He is experienced so I hope he's right about that £7,000 budget
0:43:04 > 0:43:07because it doesn't sound like a lot.
0:43:07 > 0:43:10You can find out how he gets on later in the show.
0:43:14 > 0:43:16Well, we've given our new owners some time
0:43:16 > 0:43:19- and we know how one of them got on. - But what about the others?
0:43:19 > 0:43:22Did they have a smooth sail or did they end up in troubled waters?
0:43:22 > 0:43:25I'd like to find out so let's have a look.
0:43:26 > 0:43:28Back now to East Dulwich, London,
0:43:28 > 0:43:31where earlier I saw this Victorian semi-detached house which had
0:43:31 > 0:43:35been converted into three flats, each with their own challenges.
0:43:36 > 0:43:38# One, two, three... #
0:43:38 > 0:43:41The ground floor flat had very narrow corridors
0:43:41 > 0:43:43with a stairwell at head height.
0:43:43 > 0:43:45# One, two, three... #
0:43:45 > 0:43:48A huge corridor and small rooms characterised
0:43:48 > 0:43:50the lower ground floor flat.
0:43:50 > 0:43:52And the split-level top flat...
0:43:52 > 0:43:54# One, two, three... #
0:43:54 > 0:43:58..had a bedroom with a low ceiling and unused loft space
0:43:58 > 0:44:01right for conversion, therefore adding value.
0:44:01 > 0:44:04- # It's easy - It's so easy
0:44:04 > 0:44:08# Like taking candy from a baby. #
0:44:10 > 0:44:12It was bought by Pavel, in the blue shirt, and Edgar,
0:44:12 > 0:44:16as their fifth purchase for their property and music company
0:44:16 > 0:44:20they run with Edgar's dad, who's a seasoned property developer.
0:44:20 > 0:44:26The company paid £1,060,000, £410,000 more than the top
0:44:26 > 0:44:29of the guide price range and more than they wanted to pay.
0:44:31 > 0:44:35Our top limit was actually one million so we paid 60,000 more.
0:44:35 > 0:44:37We overpaid a bit.
0:44:37 > 0:44:39However, it was a strategic decision
0:44:39 > 0:44:42because this house has a lot of potential
0:44:42 > 0:44:45and even if the prices will go down and the bubble will explode,
0:44:45 > 0:44:50people will still have to find a place to live.
0:44:50 > 0:44:53The plan was to renovate and resell but they were not sure
0:44:53 > 0:44:58whether to keep it as three flats or restore it back to one dwelling.
0:44:58 > 0:45:00We have a 50/50 scenario now.
0:45:00 > 0:45:04We haven't decided. Both ways, it is going to be a good project.
0:45:04 > 0:45:06What about any extension potential?
0:45:06 > 0:45:09You have a flat downstairs, how about extending that flat?
0:45:09 > 0:45:12Our architect is already making some decisions.
0:45:12 > 0:45:15We are planning to have the biggest extension possible.
0:45:15 > 0:45:18So whatever happens here, guys, you are going to maximise
0:45:18 > 0:45:21the potential of this building, be it a house, be it three flats.
0:45:21 > 0:45:25Yeah, we're going to do some loft conversion as well
0:45:25 > 0:45:26in the rear garden side.
0:45:26 > 0:45:30Their work schedule was seven months but the company's
0:45:30 > 0:45:33other properties took priority for the first four months of that.
0:45:33 > 0:45:36So we're back 11 months later.
0:45:38 > 0:45:40And the house is looking much brighter
0:45:40 > 0:45:43with all the brickwork cleaned and repointed.
0:45:43 > 0:45:47But the option of off-street parking at the front hasn't been pursued.
0:45:47 > 0:45:51The old entrance hall and way into the ground floor flat
0:45:51 > 0:45:52was very constricting.
0:45:54 > 0:45:56Now, it's more spacious.
0:45:56 > 0:45:59The stairs to the top flat created headroom issues
0:45:59 > 0:46:02but that space too has been opened up.
0:46:02 > 0:46:06Looks like the decision was for flats rather than converting
0:46:06 > 0:46:08back to a house.
0:46:08 > 0:46:12The bathroom, like much of the flat, is a work in progress
0:46:12 > 0:46:16as is the now open space which will become the combined kitchen and living room.
0:46:18 > 0:46:22The lower ground floor flat is also undergoing changes.
0:46:22 > 0:46:24# Baby, baby, baby
0:46:26 > 0:46:28# I'm coming home... #
0:46:28 > 0:46:31What was the lounge will become the biggest bedroom.
0:46:31 > 0:46:34# You're my one and only woman... #
0:46:35 > 0:46:38And the two outside cupboards have been bricked up and the space will
0:46:38 > 0:46:42add to the new kitchen/living room and extension into the garden.
0:46:42 > 0:46:45But a recent change of plan
0:46:45 > 0:46:48might make a huge difference to this project.
0:46:50 > 0:46:54As you can see we have quite a large garden so we have several options.
0:46:54 > 0:46:57The initial option was to split the garden in three parts.
0:46:57 > 0:47:00Each flat would have a separate garden.
0:47:00 > 0:47:04But obviously that would get much more value
0:47:04 > 0:47:07if we would be able to develop a house at the back.
0:47:07 > 0:47:11It turns out they may be able to negotiate access to the back garden
0:47:11 > 0:47:14from the road behind the rear neighbours,
0:47:14 > 0:47:17so the use of the garden hinges on this.
0:47:18 > 0:47:22We continued with the works and meanwhile we were investigating
0:47:22 > 0:47:26and researching and negotiating with the council what we can do.
0:47:26 > 0:47:29Now it looks like we can get a green light
0:47:29 > 0:47:34and then if we are unable to obtain access and build another house
0:47:34 > 0:47:39at the back, this will obviously bring added value into the project.
0:47:40 > 0:47:42So everything feels a bit half finished.
0:47:44 > 0:47:46Well, not quite everything.
0:47:46 > 0:47:48Planning was granted for the ground floor extension
0:47:48 > 0:47:52and for the rear loft conversion of the split-level flat
0:47:52 > 0:47:55turning it into a three-bedroom property.
0:47:55 > 0:47:56Let's have a look.
0:47:56 > 0:47:59# We built our own house
0:47:59 > 0:48:01# Own house
0:48:01 > 0:48:04# With our hands over our hearts... #
0:48:05 > 0:48:08Not only have they got an extra bedroom up there,
0:48:08 > 0:48:10they've squeezed in a laundry room.
0:48:12 > 0:48:13# Never fall apart
0:48:13 > 0:48:16# Apart
0:48:16 > 0:48:18# Never fall apa-apart
0:48:18 > 0:48:23# With our hands over our hearts... #
0:48:25 > 0:48:28Altering the window size and rearranging the fittings
0:48:28 > 0:48:29makes the bathroom seem much bigger.
0:48:31 > 0:48:34By combining what was bedroom one with the kitchen,
0:48:34 > 0:48:37they've created a spacious lounge kitchen.
0:48:38 > 0:48:41Two rather gloomy rooms have become one large,
0:48:41 > 0:48:44bright room with two windows.
0:48:45 > 0:48:47# You give the light I need
0:48:49 > 0:48:51# Like water to a seed... #
0:48:53 > 0:48:56The finish is to the highest of standards.
0:48:57 > 0:49:01The old reception room is now freed up to be the master bedroom
0:49:01 > 0:49:03with ensuite facilities.
0:49:19 > 0:49:23The property sold at auction for £1,060,000.
0:49:23 > 0:49:24We invited two agents along
0:49:24 > 0:49:27to give us their thoughts on the work so far,
0:49:27 > 0:49:32starting with the finished flat and the agent who saw the house before work began.
0:49:33 > 0:49:37For this three-bedroom property in its current condition,
0:49:37 > 0:49:42I estimate it to be worth £599,999.
0:49:42 > 0:49:45A property of this size in this area, I'd expect to sell
0:49:45 > 0:49:46for around the £600,000 mark.
0:49:46 > 0:49:49We're looking to get 700,000.
0:49:49 > 0:49:52Irrespective of some other lower forecasts,
0:49:52 > 0:49:54we are quite ambitious about this flat.
0:49:54 > 0:49:57You can't say much about the properties downstairs
0:49:57 > 0:50:02as they are still being done, and once they are done
0:50:02 > 0:50:06we can predict more specifically what we expect from them.
0:50:06 > 0:50:09The agents, however, were happy to predict
0:50:09 > 0:50:12and the average of their valuations for the other two flats
0:50:12 > 0:50:15is 950,000.
0:50:15 > 0:50:19Making a grand sales total of £1,550,000.
0:50:19 > 0:50:25Taking away £40,000 per flat refurbishment and the purchase price
0:50:25 > 0:50:31would leave a potential profit before tax and expenses of £370,000.
0:50:31 > 0:50:34So how's the experience been?
0:50:34 > 0:50:40I've enjoyed very much seeing this building going from very old
0:50:40 > 0:50:43to a flat with a high standard such as this one.
0:50:43 > 0:50:47Plus there's a possible extra bonus of an entire house
0:50:47 > 0:50:51the agents feel would be worth in the region of 875,000.
0:50:51 > 0:50:54Less what they cost to build.
0:50:54 > 0:50:59Most important for us is to stick to the same standard
0:50:59 > 0:51:00and keep learning.
0:51:04 > 0:51:08Back now to Derby where, earlier in the Normanton district,
0:51:08 > 0:51:12I took a tour of this two-bedroom mid-terrace with one distinctive feature.
0:51:14 > 0:51:17That's an adjoining door to next-door!
0:51:19 > 0:51:23What's that about? They just knocked and there might be someone coming.
0:51:23 > 0:51:26Better move on quick. Sorry, sorry!
0:51:26 > 0:51:28Erm...Nothing!
0:51:28 > 0:51:31Clearly, you're going to have to block that up.
0:51:31 > 0:51:33It's not really ideal, is it?
0:51:33 > 0:51:36And also, more seriously, it's a bit of a fire issue.
0:51:36 > 0:51:39If there's a fire next door and you haven't got a wall between you
0:51:39 > 0:51:43then that's going to spread through quite quickly. As you were!
0:51:43 > 0:51:46'Ideal if you needed to borrow a cup of sugar from next door,
0:51:46 > 0:51:49'not that you can do that much with it because the property
0:51:49 > 0:51:53'didn't have a kitchen, just a room where there used to be one.'
0:51:54 > 0:51:59It did have a bathroom of sorts and the rooms had good proportions.
0:51:59 > 0:52:04It was bought by a regular contributor to Homes Under The Hammer, Bobby,
0:52:04 > 0:52:07who now has a couple of dozen rental properties.
0:52:07 > 0:52:10This one cost him £57,000.
0:52:10 > 0:52:13I asked him what his intentions were for the property.
0:52:13 > 0:52:16We'll introduce a kitchen. The room is there but not the kitchen.
0:52:16 > 0:52:18So, we'll do that.
0:52:18 > 0:52:20We'll renovate the rest of the property in terms of
0:52:20 > 0:52:24change the bathroom, introduce a central heating system.
0:52:24 > 0:52:27There was one originally but it's just been ripped apart.
0:52:27 > 0:52:30New flooring, redecorate, replaster.
0:52:30 > 0:52:31A lot of work in four weeks.
0:52:31 > 0:52:34- Have you got people starting this afternoon?- Tomorrow.
0:52:34 > 0:52:37Well, it took six weeks in the end
0:52:37 > 0:52:39and Bobby has already got tenants in.
0:52:39 > 0:52:43With his and their permission we're back to see what's been achieved.
0:52:46 > 0:52:49And guess what? There's a kitchen in the kitchen!
0:52:49 > 0:52:53It may be basic and compact but it does the job.
0:52:53 > 0:52:57It does put a tick in the box of things needed to be mortgageable.
0:52:57 > 0:53:01Once family meals have been cooked in it, the dining room adjacent
0:53:01 > 0:53:03which used to look like this...
0:53:05 > 0:53:07..now has a dining table.
0:53:07 > 0:53:09And the tiled floor has come up a treat.
0:53:11 > 0:53:14The lounge has a new floor, a laminate one,
0:53:14 > 0:53:16making it much brighter.
0:53:17 > 0:53:21And remember the fire hazard short cut to next-door?
0:53:21 > 0:53:22# Knock, knock
0:53:22 > 0:53:25# Who that there at my door?
0:53:26 > 0:53:28# I hear a knock, knock... #
0:53:28 > 0:53:31Gone too are the holes in the floor at the top of the stairs
0:53:31 > 0:53:36and the complete lack of spindles is no longer a health and safety issue.
0:53:36 > 0:53:39The laminate flooring and neutrally painted replastered walls
0:53:39 > 0:53:41are omnipresent.
0:53:42 > 0:53:45# Knock, knock, knock, knocking
0:53:45 > 0:53:47# Knock, knock, knock... #
0:53:47 > 0:53:49The bathroom at the rear of the house
0:53:49 > 0:53:51was best described as user hostile.
0:53:51 > 0:53:54Now the tiled floor and partially tiled walls
0:53:54 > 0:53:58along with the new fittings make you feel like you could actually have a bath.
0:54:00 > 0:54:02# I would love to
0:54:02 > 0:54:05# Next time I hear a knock, knock
0:54:05 > 0:54:07# Who that there at my door?
0:54:08 > 0:54:12The back bedroom continues with the unifying theme.
0:54:13 > 0:54:15# Next time I hear a knock, knock.
0:54:15 > 0:54:17# Who that there at my door?
0:54:17 > 0:54:20# I hear a knock, knock... #
0:54:20 > 0:54:23It's been home to the new tenants for just three days
0:54:23 > 0:54:26and new plumbing and heating make for a much more homely home.
0:54:27 > 0:54:30Bobby did overrun his original timescale of four weeks
0:54:30 > 0:54:34by two weeks, so all can't have been plain sailing.
0:54:36 > 0:54:39Unfortunately, the electrics needed required more work
0:54:39 > 0:54:43so that ate into the budget and it took a little longer.
0:54:43 > 0:54:46The plasterer was having to slow down on his work
0:54:46 > 0:54:48waiting for the electrician.
0:54:48 > 0:54:50It's not as if he didn't have much to do either.
0:54:50 > 0:54:53Four rooms, hallway and landing were all replastered.
0:54:53 > 0:54:55Did that affect the budget?
0:54:56 > 0:54:59We were hoping to spend between £7-£8,000
0:54:59 > 0:55:03and we've come in sort of spot on, about 7,500.
0:55:04 > 0:55:07- And the garden? - The garden is still as it is.
0:55:08 > 0:55:11It needs clearing even more than before now.
0:55:11 > 0:55:13Even so, to do all the rest
0:55:13 > 0:55:17and be in budget with unforeseen extra work is a good thing.
0:55:17 > 0:55:19I'm pleased in the way it's turned out.
0:55:19 > 0:55:24It's become a nice, neat home and the family seem to be happy that are living here.
0:55:25 > 0:55:30Well, let's see if the fiscal policy has paid off in real estate terms.
0:55:30 > 0:55:33We called in two local property experts to give us their views
0:55:33 > 0:55:37and valuations, starting with the valuer who saw it before work began.
0:55:39 > 0:55:41Coming back to the property, I would say
0:55:41 > 0:55:43it's been done to a reasonable standard.
0:55:43 > 0:55:48It's certainly not the best but it's ideal for the market it's going to appeal to.
0:55:48 > 0:55:51I think it would be more suitable to the rental market.
0:55:51 > 0:55:55From a sales point of view, it might not be quite good enough
0:55:55 > 0:55:58for a family looking to buy a property
0:55:58 > 0:56:02although an investor might be interested to buy it as a property to let out.
0:56:02 > 0:56:06Is there anything about the property you would have done differently?
0:56:06 > 0:56:09I would have left the layout of the property exactly as it is.
0:56:09 > 0:56:12There's only so much you can do with the space that's on offer.
0:56:12 > 0:56:14They spent money on the basics, on the important things
0:56:14 > 0:56:18like the windows and the electrics so I'm sure
0:56:18 > 0:56:21it's up to standard legally, and the rest is just cosmetic.
0:56:21 > 0:56:26A good reminder that all electrical works must be certified.
0:56:26 > 0:56:31Bobby's spent £64,500 so what would he get back if he wanted to sell?
0:56:32 > 0:56:35If we were to put this property on the market for sale,
0:56:35 > 0:56:40I would look at offers in the region of £75,000.
0:56:40 > 0:56:43I would say that if this property were offered on the resale market,
0:56:43 > 0:56:46it would achieve somewhere in the region of £75,000.
0:56:46 > 0:56:51A potential profit of £10,500 minus the usual taxes and expenses.
0:56:51 > 0:56:54But for Bobby it's all about the rent.
0:56:54 > 0:56:56How does his £57,000 purchase
0:56:56 > 0:57:01and £7,500-worth of refurbishment stack up then?
0:57:02 > 0:57:04If we were to put this property up for rent,
0:57:04 > 0:57:08I think it would achieve £450 per calendar month.
0:57:08 > 0:57:11I would say that if offered in its current state to the rental market
0:57:11 > 0:57:14it would achieve a rental of £450 per calendar month.
0:57:14 > 0:57:17I'm pleased, we're getting over 500!
0:57:17 > 0:57:20In fact, Bobby's getting £540 per calendar month
0:57:20 > 0:57:23which equates to a yield of just over 10%.
0:57:23 > 0:57:27At that rate would Bobby repeat the process?
0:57:28 > 0:57:31Since buying this property, bought two more.
0:57:31 > 0:57:33They're in Normanton and they were through the auction as well.
0:57:33 > 0:57:35Well, that answers that one.
0:57:35 > 0:57:38Would you give some advice to someone wanting
0:57:38 > 0:57:41to get into the buy-to-let market?
0:57:41 > 0:57:43Anybody interested in going into this market,
0:57:43 > 0:57:48just work your costings out and please allow a little bit extra.
0:57:48 > 0:57:51And finally, can we all guess what your future plans are?
0:57:52 > 0:57:55My future plans are to carry on buying property
0:57:55 > 0:57:56and carry on working.
0:58:00 > 0:58:03On Homes Under The Hammer we visit auction rooms all around Britain.
0:58:03 > 0:58:06Yes, join us next time to find out what we have in store.
0:58:06 > 0:58:10- You won't want to miss it. See you, then.- Goodbye.- Goodbye.