0:00:02 > 0:00:04Hello. If you are looking for a good investment, you can't go far wrong
0:00:04 > 0:00:07- with bricks and mortar.- Yeah, and if you want your money to go further,
0:00:07 > 0:00:10then you might be able to pick up a bargain at a property auction.
0:00:10 > 0:00:13Whatever you do, make sure you do your research
0:00:13 > 0:00:15first before you buy your home under the hammer.
0:00:41 > 0:00:45If you are making your debut in the world of property development,
0:00:45 > 0:00:49it is best to start small and crack on with a straightforward refurb.
0:00:49 > 0:00:53Yeah, even just a lick of paint can often be enough to deliver a profit.
0:00:53 > 0:00:56You don't have to start with that subsiding castle.
0:00:56 > 0:01:00Let's find out what our buyers on today's show were willing to tackle.
0:01:00 > 0:01:05A three-bed in Burnley has an odd layout and unusual decor too.
0:01:05 > 0:01:08This, however, is a bit of an interesting design feature,
0:01:08 > 0:01:09don't you think?
0:01:11 > 0:01:14The view from upstairs in this Liverpool semi is completely normal.
0:01:14 > 0:01:16Honest.
0:01:16 > 0:01:19There is nothing unusual upstairs - three bedrooms and a bathroom.
0:01:21 > 0:01:24And I have spotted some bizarre wildlife at a bungalow
0:01:24 > 0:01:26in Littleover, Derby.
0:01:26 > 0:01:27It almost looks like an enormous,
0:01:27 > 0:01:30great turtle has fallen down and been squashed.
0:01:32 > 0:01:34All these properties were bought at auction.
0:01:34 > 0:01:36We will find out who got them,
0:01:36 > 0:01:39how much they paid when these homes went under the hammer.
0:01:39 > 0:01:40Well done, madam.
0:01:46 > 0:01:48Well, as a general strategy,
0:01:48 > 0:01:51you want to be investing in property in an area where somebody else
0:01:51 > 0:01:54is spending loads of money on the infrastructure,
0:01:54 > 0:01:58such as the government or local council or even the EU.
0:01:58 > 0:02:00So they are piling millions into new roads
0:02:00 > 0:02:03or shopping centres or schools or whatever.
0:02:03 > 0:02:06And you can then benefit from the effects that it is bound to have
0:02:06 > 0:02:09on the local community, and that is exactly what is happening there.
0:02:09 > 0:02:12And the here in question is Burnley.
0:02:12 > 0:02:15Hundreds of millions of pounds of public and private money,
0:02:15 > 0:02:18and that means things are not only looking up for the town
0:02:18 > 0:02:20but the property market too.
0:02:20 > 0:02:22It is a dream scenario.
0:02:22 > 0:02:27# My dreams are getting better all the time. #
0:02:30 > 0:02:34Well, with lots of money and effort being spent on redeveloping
0:02:34 > 0:02:39the area, the days of boarding up houses and properties you
0:02:39 > 0:02:42could buy for a couple of thousand quid are probably behind us.
0:02:42 > 0:02:44As a result, property prices are rising.
0:02:44 > 0:02:46For instance, this. It is an end-of-terrace.
0:02:46 > 0:02:49Guide price now - £20,000+.
0:02:49 > 0:02:50Let's take a look.
0:02:52 > 0:02:54So, fairly substantial on the outside.
0:02:54 > 0:02:56What is it like once you step through the front door?
0:02:56 > 0:02:59Well, it's all right, yeah. Your front room here.
0:02:59 > 0:03:02Obviously needs a bit of - ha - renovation.
0:03:02 > 0:03:05But it is a good size, nice high ceilings.
0:03:05 > 0:03:07- HE SNIFFS - Doesn't smell damp, which is good.
0:03:07 > 0:03:09So, yeah, looks all right.
0:03:09 > 0:03:11Open fire, which is a nice touch.
0:03:11 > 0:03:13This, however, is a bit of an interesting design feature,
0:03:13 > 0:03:15don't you think?
0:03:15 > 0:03:18A bit of interior brick work forming a pillar.
0:03:18 > 0:03:21Oh, well. Sends you up to your bedrooms there.
0:03:21 > 0:03:24Through into a really nice sized rear lounge.
0:03:24 > 0:03:27This is a good space, isn't it, here? We like this.
0:03:27 > 0:03:30Lots of light coming in from two windows,
0:03:30 > 0:03:33one of the advantages of being an end-terrace.
0:03:33 > 0:03:35It looks like you've got central heating, so that is nice.
0:03:35 > 0:03:38Unfortunately, the only thing that lets you down slightly
0:03:38 > 0:03:42at the moment is this room here, which is the current kitchen.
0:03:42 > 0:03:45And it is pretty small in relation to the rest of the property.
0:03:45 > 0:03:47But given this room is so big, I'm wondering
0:03:47 > 0:03:50if you should make this into a kitchen/living area, have
0:03:50 > 0:03:55this as a utility and suddenly it is turning it into a very usable space.
0:03:55 > 0:03:58And thankfully, there is not much kitchen to move.
0:04:00 > 0:04:04So upstairs, and three bedrooms. They are all a good size, actually.
0:04:04 > 0:04:05One, towards the front there.
0:04:05 > 0:04:07Slightly smaller one towards the back.
0:04:07 > 0:04:10And then a bit of a hiccup in the whole design.
0:04:10 > 0:04:13This is the third bedroom. And, unfortunately,
0:04:13 > 0:04:17you have to pass through it to get access to the only bathroom.
0:04:17 > 0:04:19Clearly, that is not ideal.
0:04:19 > 0:04:21I suppose the way around it is to try to get a bathroom downstairs,
0:04:21 > 0:04:25perhaps so this then becomes an en-suite or probably...
0:04:25 > 0:04:28I don't know, just try and work with the layout.
0:04:28 > 0:04:33Corner baths don't suit everyone and neither do green suites.
0:04:33 > 0:04:38It can be any other colour, as long as it is white. That is my motto.
0:04:38 > 0:04:41It's access that's an issue, but -
0:04:41 > 0:04:45and it is a big but - moving bathrooms and kitchens can cost.
0:04:45 > 0:04:49Electrics and plumbing don't come cheap. Time to venture outside.
0:04:49 > 0:04:52Well, at the back of the property, no garden to speak of.
0:04:52 > 0:04:54Just this small sort of little courtyard area.
0:04:54 > 0:04:58But one bit of good news - you have got this gated alleyway.
0:04:58 > 0:05:01Now, when they introduced these gated alleyways several years ago,
0:05:01 > 0:05:03one of the things they found with it is
0:05:03 > 0:05:05it dramatically reduced things like crime.
0:05:05 > 0:05:09So the fact that this is here, it is a good sign.
0:05:09 > 0:05:11Another indication that the area is definitely moving
0:05:11 > 0:05:14in the right direction.
0:05:14 > 0:05:17And there is a local estate agent heading in our direction now.
0:05:17 > 0:05:20What does he think of this property guided
0:05:20 > 0:05:22at £20,000?
0:05:22 > 0:05:24It is a great terraced property, nice finish.
0:05:24 > 0:05:28Certainly, if it can be renovated to a very high standard,
0:05:28 > 0:05:30it should be very popular on the local marketplace.
0:05:30 > 0:05:33There has recently been a lot of properties on the market
0:05:33 > 0:05:35within the area, so the vendor has to be very
0:05:35 > 0:05:38confident that they are setting the price correctly
0:05:38 > 0:05:42to make sure they get the sale in the quickest possible time.
0:05:42 > 0:05:44So a competitive market around here
0:05:44 > 0:05:47is one thing you'll have to consider.
0:05:47 > 0:05:51What work would the agent advise you could do to give any developer
0:05:51 > 0:05:53the edge with this property?
0:05:53 > 0:05:55If this were my property, I would probably move the bathroom.
0:05:55 > 0:05:58I'd also look at expanding out kitchen.
0:05:58 > 0:06:00That would make it more popular with local families
0:06:00 > 0:06:03and it certainly would sell a lot faster in the current marketplace.
0:06:03 > 0:06:07So you need to factor in those layout changes to any budget.
0:06:07 > 0:06:10But could there be a profit in a resale?
0:06:10 > 0:06:11This could be a really good property.
0:06:11 > 0:06:14I would expect it to achieve somewhere in the region
0:06:14 > 0:06:17of £65,000 once the work has been completed.
0:06:17 > 0:06:18And rental?
0:06:18 > 0:06:22The rental market is very strong in this area, so I would suggest
0:06:22 > 0:06:26it would achieve somewhere in the region of £425 per calendar month.
0:06:28 > 0:06:30So clearly, a bit of work to be done.
0:06:30 > 0:06:34But you are buying a good-sized property in an area that is
0:06:34 > 0:06:37moving in the right direction. So an interesting one to go for.
0:06:37 > 0:06:40Let's see who agreed when it went under the hammer.
0:06:45 > 0:06:48Lot 55. Perfect family home. First-time-buyer,
0:06:48 > 0:06:50or even buy-to-let investment.
0:06:50 > 0:06:5220 is your guide. Start me.
0:06:52 > 0:06:5420 here, at 20 I'm bid. At 20 I'm bid.
0:06:54 > 0:06:55Now in ones.
0:06:55 > 0:06:58At 20. 21 here. 22. 23.
0:06:58 > 0:07:01At £23,000. 24, new bidder.
0:07:01 > 0:07:0525. 26. 27. 28.
0:07:05 > 0:07:07Here at 28. It is with you, sir, at 28.
0:07:07 > 0:07:10Back in at 29. 30. One.
0:07:10 > 0:07:11Here at 30.
0:07:11 > 0:07:14One. Back in. 32.
0:07:14 > 0:07:16Been with me all the way, sir. At £32,000.
0:07:16 > 0:07:18I'll take a half.
0:07:20 > 0:07:24OK then, at 32. Half I've got. 32.5. 33.
0:07:24 > 0:07:28You could have bought a house with that half. 32,500 with you, madam.
0:07:28 > 0:07:30First time.
0:07:30 > 0:07:32Back in at 33. And a half?
0:07:34 > 0:07:35You know you want it.
0:07:35 > 0:07:3733 here. First time.
0:07:37 > 0:07:39Second time then.
0:07:39 > 0:07:42Third and final time at £33,000.
0:07:42 > 0:07:44Are we done? Half.
0:07:44 > 0:07:4734. Nearly. 34?
0:07:48 > 0:07:5133,500 on my right.
0:07:51 > 0:07:53For the first time. Second time.
0:07:53 > 0:07:56Third and final time if you are all done.
0:07:56 > 0:07:57Well done, madam.
0:07:59 > 0:08:01Wow! Tense or what?
0:08:01 > 0:08:07Friends Rebecca and Tracy made that successful bid of 33,500.
0:08:07 > 0:08:10And it was Tracy who came along to tell me their plans.
0:08:14 > 0:08:15Tracy, good to meet you.
0:08:15 > 0:08:20- Hi.- Congratulations. Tell me, why did you buy this place?
0:08:20 > 0:08:23We had been searching for a property for a little while now.
0:08:23 > 0:08:25And this was not the first one we had seen,
0:08:25 > 0:08:27but it was certainly the first that we'd liked.
0:08:27 > 0:08:30And where were you searching? In this area or farther afield?
0:08:30 > 0:08:34- Yeah, this area at the moment. - What attracted you to Burnley?
0:08:34 > 0:08:38The house prices at the moment in Burnley are quite low.
0:08:38 > 0:08:42And the rental, there's a lot of good rental value around here.
0:08:42 > 0:08:45There is a lot of regeneration work being
0:08:45 > 0:08:46done by the council at the moment.
0:08:46 > 0:08:48- So it is definitely up-and-coming. - Right.
0:08:48 > 0:08:51- So you get in there right at the start of all this stuff.- Hopefully.
0:08:51 > 0:08:54So tell me about you, is this what you do? Is this your job?
0:08:54 > 0:08:58- This is our first one.- OK. - First property.
0:08:58 > 0:09:01So it is something we look to hopefully do in the future,
0:09:01 > 0:09:02make a business out of it.
0:09:03 > 0:09:07Rebecca couldn't come along to meet me as she was at another auction.
0:09:07 > 0:09:11She had two properties on her list. But one thing at a time.
0:09:11 > 0:09:13Why do the duo want this one?
0:09:13 > 0:09:15It is a good size.
0:09:15 > 0:09:17Potential three bedrooms, three good-sized bedrooms.
0:09:17 > 0:09:20The area is not bad for a three bedroom
0:09:20 > 0:09:23rather than a two, obviously. It will bring more rental value in.
0:09:23 > 0:09:25And we got it at what I thought was the right price
0:09:25 > 0:09:27- on the day at the auction. - And in terms of the renovation,
0:09:27 > 0:09:30have you got property experience or is this fairly new?
0:09:30 > 0:09:33Only through my own properties, like tiling and floors
0:09:33 > 0:09:35- and things like that. Nothing major.- Right.
0:09:35 > 0:09:37But we have got a few builders we are working with.
0:09:37 > 0:09:40And what were you doing before you sort of started doing this, then?
0:09:40 > 0:09:44- Shabby chic-ing is what I do by day. - Shabby chic-ing, what is that?
0:09:44 > 0:09:48I buy furniture at a cheap price and I restore it.
0:09:48 > 0:09:52- Repaint it and then age and distress it.- Oh, wow.
0:09:52 > 0:09:53- And then sell it on?- Yeah.
0:09:53 > 0:09:56Brilliant. What kind of things do you do? Sort of...
0:09:56 > 0:09:59- Tables, chairs, beds, wardrobes. Anything woody.- Right.
0:09:59 > 0:10:02- If it is wood, I will paint it.- Right.
0:10:02 > 0:10:04And how did you get the effect?
0:10:04 > 0:10:07Well, you paint it so it looks brand-new
0:10:07 > 0:10:08and then you age it with a sander.
0:10:08 > 0:10:10And wax.
0:10:10 > 0:10:13So you have a pristine, nice piece and then you destroy it.
0:10:13 > 0:10:16- But you age it and it adds value. - Oh, great.
0:10:16 > 0:10:19So are you going to kit this place out with that kind of stuff or not?
0:10:19 > 0:10:22Uh... I've certainly got furniture pre-painted that we can put
0:10:22 > 0:10:24in here if it helps to make it, you know,
0:10:24 > 0:10:28so people can visualise how it will look and how things can fit.
0:10:28 > 0:10:31- You're quite handy, then.- I like to get things for next to nothing.
0:10:31 > 0:10:34- OK.- I like all the painting and things like that.- Right.
0:10:34 > 0:10:37So I'll do a bit of a bartering and buying and selling.
0:10:37 > 0:10:40Tracy sounds like she knows how to strike a deal
0:10:40 > 0:10:42and get a good value for money.
0:10:42 > 0:10:45And when it comes to buying materials for the renovation
0:10:45 > 0:10:48of the auction purchase, she doesn't hang around.
0:10:48 > 0:10:51- I bought most of it before I bought the house.- What do you mean?
0:10:51 > 0:10:55Like tiles - floor tiles, bathroom tiles, bathroom suite.
0:10:55 > 0:10:57- HE LAUGHS - My garage is full of the stuff.
0:10:57 > 0:11:01Because if you're going to buy something that cost 99p,
0:11:01 > 0:11:05then...yeah. And I bought tiles - £50 for 700.
0:11:05 > 0:11:08And then sold 300 of them for 450.
0:11:08 > 0:11:10- Oh, wow!- Enough to pay for the bathroom suite.
0:11:10 > 0:11:12And I just do things like that.
0:11:12 > 0:11:15My friends call me a female Del Boy, really.
0:11:15 > 0:11:18- Oh, yeah! - A more successful one, I hope.
0:11:18 > 0:11:20HE LAUGHS
0:11:20 > 0:11:22- LAUGHING:- Yeah, I can really see Tracy
0:11:22 > 0:11:25and Rebecca in the old yellow Reliant Robin.
0:11:25 > 0:11:29But is she a good wheeler dealer? Time to put her skills to the test.
0:11:29 > 0:11:34So have you developed a sort of acting shocked about the price
0:11:34 > 0:11:36that he is suggesting face yet?
0:11:36 > 0:11:39- Yes.- Would you give me your acting shocked...?
0:11:39 > 0:11:42"It is going to be £10,000 for your kitchen, love."
0:11:42 > 0:11:44Oh, we need it half that price, definitely.
0:11:44 > 0:11:46Not that money in the bank.
0:11:46 > 0:11:48I'm afraid.
0:11:48 > 0:11:49And I always go in with,
0:11:49 > 0:11:51"I've got a quote for at least 2,000 less than that."
0:11:51 > 0:11:54And Rebecca's there, "Yeah, it came in this morning."
0:11:55 > 0:11:59We have to get her along with us, but she is getting there.
0:11:59 > 0:12:01So what are you going to do to this place?
0:12:01 > 0:12:03Talk me through exactly the project plan.
0:12:03 > 0:12:07You know, plastering throughout. Just a clean finish. New kitchen.
0:12:07 > 0:12:10Obviously, we'd like to give a wow factor to the kitchen.
0:12:10 > 0:12:11Possibly new.
0:12:11 > 0:12:14I've done a bit of haggling to get the new prices as low as I can
0:12:14 > 0:12:17get, but it's still a bit higher than I'd like.
0:12:17 > 0:12:20But the fitting of the kitchen, it is trying to find a builder
0:12:20 > 0:12:23who'd want to put the time into a second-hand kitchen.
0:12:23 > 0:12:25Cos I understand that it can then outweigh itself
0:12:25 > 0:12:28cos you are putting more into a builder spending that time
0:12:28 > 0:12:31than it would if I were just to buy a brand-new kitchen.
0:12:31 > 0:12:33Bathroom needs moving.
0:12:33 > 0:12:36Obviously, to create that third bedroom without having to walk
0:12:36 > 0:12:38through it to go to the bathroom.
0:12:38 > 0:12:41- OK.- Get rid of the green suite.
0:12:41 > 0:12:42Add a nice white one.
0:12:42 > 0:12:45And then, yeah, just creating the three bedrooms.
0:12:45 > 0:12:47I don't think it's got much needs doing to it.
0:12:47 > 0:12:49The six windows need replacing to double glazing.
0:12:49 > 0:12:52And a new front door and back door.
0:12:52 > 0:12:55- So, what is the budget? - 7,000 top.- OK.
0:12:55 > 0:12:58- That sounds reasonable. - Yeah. I am thinking five,
0:12:58 > 0:13:00but six, seven, yeah.
0:13:00 > 0:13:02No, Rebecca thinks seven, I think five.
0:13:02 > 0:13:05# Oh, little lady, little lady
0:13:08 > 0:13:11# You sure drive a hard bargain. #
0:13:11 > 0:13:16She is quite a haggler, is Tracy. But you have to be in this game.
0:13:16 > 0:13:19And in property development, it also helps to be hands-on.
0:13:19 > 0:13:21Tracy is planning to skim the walls
0:13:21 > 0:13:26and do lots of other jobs over their 8-to-12-week timescale.
0:13:26 > 0:13:29Well, listen, lovely to meet you. Congratulations.
0:13:29 > 0:13:32- And good luck with it.- Thank you.
0:13:32 > 0:13:35Well, something tells me that Tracy and her partner are going to
0:13:35 > 0:13:38do very well at this property developing lark.
0:13:38 > 0:13:40She has definitely got a fantastic attitude.
0:13:40 > 0:13:44And I think she will get things at the best possible price,
0:13:44 > 0:13:46don't you? You can find out how
0:13:46 > 0:13:49she gets on sorting this house out later in the show.
0:13:54 > 0:13:56Welcome to the North West of England
0:13:56 > 0:13:59and a city best known for its cultural contribution.
0:14:00 > 0:14:02From Alan Bleasdale to Leighton Baines,
0:14:02 > 0:14:05Edwina Currie to Elvis Costello,
0:14:05 > 0:14:10Liverpool has produced some of the UK's most diverse and famous names.
0:14:11 > 0:14:14Today, I am in Huyton, only six miles from this lovely city centre.
0:14:14 > 0:14:20# In my Mersey paradise. #
0:14:20 > 0:14:24The property I am here to see is in this quiet cul-de-sac.
0:14:24 > 0:14:27It is a three-bed, detached house with a guide price
0:14:27 > 0:14:30at auction of £80,000+.
0:14:30 > 0:14:33Now, it is in need of a bit of modernisation,
0:14:33 > 0:14:36but one positive is all this off-street parking.
0:14:36 > 0:14:37Let's take a look.
0:14:39 > 0:14:44And no, I have not lost the plot. This is not a lawn, it's a driveway.
0:14:44 > 0:14:47Honest. The outside does leave a bit to be desired.
0:14:50 > 0:14:53OK, straight into the hallway area.
0:14:53 > 0:14:54Very much an '80s feeling,
0:14:54 > 0:14:57'70s feeling in here as soon as you come in.
0:14:57 > 0:14:59'80s wallpaper - three types of wallpaper.
0:14:59 > 0:15:01And you have got a '70s banister here.
0:15:01 > 0:15:03I haven't seen one of those in a long time.
0:15:03 > 0:15:07Down the hallway to the kitchen area, which is a nice size,
0:15:07 > 0:15:10a good space, it just needs a complete modernisation in there.
0:15:10 > 0:15:12I'd start from scratch in the kitchen.
0:15:12 > 0:15:15Into a lounge sort of dining area, which is...
0:15:15 > 0:15:18There's a lot of floor space in here. It is quite big.
0:15:21 > 0:15:23But big in this case is not beautiful.
0:15:24 > 0:15:28Apart from being a wallpaper catalogue from a bygone era,
0:15:28 > 0:15:30the whole thing is dated and dilapidated.
0:15:32 > 0:15:33You know what I'm going to say.
0:15:33 > 0:15:37# Rip it up and start again
0:15:38 > 0:15:41# Rip it up and start again. #
0:15:43 > 0:15:44You know me, I like a beer in the garden.
0:15:44 > 0:15:47But there is a fair bit of work to be done before that can happen.
0:15:49 > 0:15:52There is plenty of space out here and out the side,
0:15:52 > 0:15:55where maybe this place could be extended.
0:15:55 > 0:15:58I'd plump for a conservatory. That will be a nice addition.
0:15:59 > 0:16:02But perhaps best focus on the more visible issues first.
0:16:02 > 0:16:06There is nothing unusual upstairs - three bedrooms and a bathroom.
0:16:06 > 0:16:08Apart from this strange hole.
0:16:08 > 0:16:11# Mind the gap, mind the girl
0:16:11 > 0:16:13# Have another drink on me
0:16:13 > 0:16:16# Mind the gap, mind the girl. #
0:16:20 > 0:16:24Holes in the floor are not the kind of space we are looking for.
0:16:24 > 0:16:27Once the gaps are fixed, you'll be left with two good-sized double
0:16:27 > 0:16:29bedrooms and a third single bedroom.
0:16:31 > 0:16:34Just like downstairs, the walls all need to be stripped back
0:16:34 > 0:16:40and the carpets replaced. On the plus side, the bathroom isn't too bad.
0:16:40 > 0:16:42And there is even a downstairs loo.
0:16:46 > 0:16:49But will that be enough to convince a local estate agent that this
0:16:49 > 0:16:52is a good investment?
0:16:52 > 0:16:54We have asked one along to find out.
0:16:54 > 0:16:56It needs to be refurbished, yeah.
0:16:56 > 0:16:59It needs a new bathroom, new kitchen.
0:16:59 > 0:17:01Just decorating, basically.
0:17:01 > 0:17:03It would add value by putting in a conservatory.
0:17:03 > 0:17:06It has got a nice, big garden. So that would be a bonus to it.
0:17:08 > 0:17:11So we both think adding a conservatory would add value
0:17:11 > 0:17:16to this house. But how much could it be worth once refurbished?
0:17:16 > 0:17:20The resale of this would be £175,000 to £185,000.
0:17:22 > 0:17:23And if you opted to let it out,
0:17:23 > 0:17:26is there a good demand for this type of property?
0:17:26 > 0:17:28Yeah, it is a good rental area.
0:17:28 > 0:17:31It would bring in between £650
0:17:31 > 0:17:33to £750 per calendar month.
0:17:40 > 0:17:43This is a detached property in a good area with off-street parking.
0:17:43 > 0:17:47Basically, it has a lot going for it. It does need a bit of work.
0:17:47 > 0:17:50Let's see who is ready to tackle that work when it went to auction.
0:17:50 > 0:17:52Up to Liverpool.
0:17:52 > 0:17:56A three-bedroom, detached house, in need of modernisation.
0:17:56 > 0:17:5780,000 anywhere?
0:17:57 > 0:18:0180,000 at the back of the room. 81 anywhere?
0:18:01 > 0:18:0381. 82.
0:18:03 > 0:18:0683. 84.
0:18:06 > 0:18:0785.
0:18:07 > 0:18:10This lot came at the end of a long auction.
0:18:10 > 0:18:13However, there was still two very competitive bidders,
0:18:13 > 0:18:15one of them on the phone.
0:18:16 > 0:18:20We rejoin the action with the bidding at £130,000.
0:18:20 > 0:18:22131.
0:18:23 > 0:18:25Long way back. 131. 132.
0:18:25 > 0:18:28No? 131. Been there all along.
0:18:28 > 0:18:31And I do want to sell it to you. Lot 131 for the first.
0:18:31 > 0:18:33131 for the second.
0:18:33 > 0:18:35131 for the third.
0:18:35 > 0:18:37- 132.- 132, I'm sorry.
0:18:37 > 0:18:41Gentleman at the back of the room, one more bid?
0:18:41 > 0:18:44Thank you. 133. Against the telephone.
0:18:44 > 0:18:45So we go again.
0:18:45 > 0:18:49133 for the first. 133 for the second.
0:18:49 > 0:18:53For the third and final time.
0:18:53 > 0:18:56Sold to the gentleman in the white at the back of the room.
0:18:56 > 0:18:58After that mammoth battle,
0:18:58 > 0:19:00the very relieved-looking buyer getting the property for
0:19:00 > 0:19:03133 grand was Chris.
0:19:08 > 0:19:12The Manchester-based businessman already owns several properties,
0:19:12 > 0:19:14but this was the first time he purchased at auction.
0:19:14 > 0:19:19And what a purchase. 53 grand over the guide price.
0:19:19 > 0:19:21So not surprisingly,
0:19:21 > 0:19:24I wanted to find out how he felt about his auction experience.
0:19:24 > 0:19:26- Chris, nice to meet you. - And nice to meet you.
0:19:26 > 0:19:29- Congratulations, well done. - Thank you very much.
0:19:29 > 0:19:32- So, how was the auction, Chris? - Hectic.
0:19:32 > 0:19:36We just got in there at the last minute, just before the lot was due.
0:19:36 > 0:19:40So it was a bit of a panic. But we got in there, got the winning bid.
0:19:40 > 0:19:43- And all was well. - Who did you go with?
0:19:43 > 0:19:45I went with Josie, my partner,
0:19:45 > 0:19:48and I went with Christian, my little boy.
0:19:48 > 0:19:49OK, was Josie any help?
0:19:49 > 0:19:52- Was she any help? - HE LAUGHS
0:19:52 > 0:19:53You'll see her shaking her head
0:19:53 > 0:19:56as I was making the last few bids, yeah.
0:19:56 > 0:19:58Was she holding you on, not letting you go?
0:19:58 > 0:20:01She has got me on a very short lead.
0:20:01 > 0:20:04- Was it at the right price? - It was at exactly the right price.
0:20:04 > 0:20:07I wouldn't have paid much more for it.
0:20:07 > 0:20:09Well, that is a relief.
0:20:09 > 0:20:11Even though he has gone over the guide price by so much,
0:20:11 > 0:20:13he seems pretty happy.
0:20:14 > 0:20:18And it turns out that Chris is just revving up in the property business.
0:20:18 > 0:20:21I buy and sell camper vans.
0:20:21 > 0:20:22That is your job at the moment?
0:20:22 > 0:20:24That is what I've been doing for the past ten years.
0:20:24 > 0:20:29And now you are moving away from that slightly, you've been to auction.
0:20:29 > 0:20:31Probably moving away from it completely.
0:20:31 > 0:20:35We had a baby about a year ago. Wife has given up work.
0:20:35 > 0:20:39And I've got to, you know, generate a bit more
0:20:39 > 0:20:41income now that she has given up work.
0:20:41 > 0:20:44And we've got more time to spend with the baby as well.
0:20:44 > 0:20:46So hence the reasons for moving into property.
0:20:46 > 0:20:50- Yes, priorities, priorities. - Priorities.
0:20:50 > 0:20:53Chris already has two properties - one he lets out
0:20:53 > 0:20:55and one he uses as his office.
0:20:56 > 0:20:58This is his first full-time venture,
0:20:58 > 0:21:01so what are his plans to bring in the bucks?
0:21:02 > 0:21:03It is mostly just decorating.
0:21:03 > 0:21:06There is no structural work to do.
0:21:06 > 0:21:08So it should be very quick and easy.
0:21:08 > 0:21:11It is going to be a very, very light renovation.
0:21:11 > 0:21:14Just basically redecorating, rejuvenating.
0:21:14 > 0:21:16- We will probably put a new kitchen in.- OK.
0:21:16 > 0:21:19But other than that, it is pretty easy work.
0:21:19 > 0:21:21Have you got people that you normally use?
0:21:21 > 0:21:23Have you got decorators and builders?
0:21:23 > 0:21:25Are you going to do it yourself?
0:21:25 > 0:21:28I think on this particular property,
0:21:28 > 0:21:30I am going to do a lot of the work myself.
0:21:30 > 0:21:32Because it is so easy.
0:21:32 > 0:21:35- Basically.- Yeah, true.- I used to be a decorator many years ago.
0:21:35 > 0:21:37- There you go, you see?- Very easy.
0:21:37 > 0:21:39- The skills are already there. - There we go.
0:21:41 > 0:21:45No conservatories, no extensions, just keeping it simple
0:21:45 > 0:21:48and decorating and bringing this place bang up-to-date.
0:21:49 > 0:21:51However, as regular viewers will know, it is
0:21:51 > 0:21:55very rare that a property doesn't throw up some problems.
0:21:55 > 0:21:59I really hope Chris hasn't underestimated the work here.
0:21:59 > 0:22:03So tell us, what is your budget, first and foremost?
0:22:03 > 0:22:07I would think we'd be able to sort the property
0:22:07 > 0:22:09out for probably under a couple of thousand pounds.
0:22:09 > 0:22:11That little?
0:22:11 > 0:22:14- That little, yeah. - What are you going to get for that?
0:22:14 > 0:22:16Cos you've got to fill a few holes in.
0:22:16 > 0:22:18You are thinking a new kitchen, maybe.
0:22:18 > 0:22:21Well, the new kitchen is going to be the major expense,
0:22:21 > 0:22:23but other than that, it's just decorating.
0:22:26 > 0:22:28# Spending money
0:22:28 > 0:22:30# Spending money. #
0:22:30 > 0:22:34A couple of thousand? I think Chris could be pulling my leg.
0:22:34 > 0:22:36I know this house isn't in terrible condition
0:22:36 > 0:22:40and Chris seems a pretty confident chap, but a new kitchen,
0:22:40 > 0:22:45carpets and paint and certainly - well, I'm hoping - new wallpaper.
0:22:45 > 0:22:48And there is bound to be re-plastering,
0:22:48 > 0:22:50re-plumbing, electrics.
0:22:50 > 0:22:51And then there is that garden.
0:22:51 > 0:22:53Two grand?!
0:22:53 > 0:22:55He may well have splashed out at the auction,
0:22:55 > 0:22:58but he's certainly not splashing the cash year.
0:22:58 > 0:23:01Even with his decorating skills, wow.
0:23:01 > 0:23:03And let's not forget travelling costs,
0:23:03 > 0:23:06because Chris does not live in the area.
0:23:06 > 0:23:08Will you camp in?
0:23:08 > 0:23:10I'm going to be on the short lead, I'm going
0:23:10 > 0:23:11to have to go back home every night,
0:23:11 > 0:23:15I'm afraid, and help with the offspring.
0:23:15 > 0:23:17So I will be coming here every day to work.
0:23:17 > 0:23:20I think probably a month or two should see it through.
0:23:20 > 0:23:22What are you going to do with it?
0:23:22 > 0:23:25Have you bought it to let it, to live in it, to sell it?
0:23:25 > 0:23:28No, it's going to be put straight back on the market
0:23:28 > 0:23:30and resold as soon as it is done.
0:23:30 > 0:23:34- OK. So you want to carry on buying properties?- Absolutely.
0:23:34 > 0:23:35It is the way forward.
0:23:35 > 0:23:38- It is a future for me and for the family as well, yeah.- Good man.
0:23:38 > 0:23:41I like that. Good luck to you. I know it is going to work out, pal.
0:23:41 > 0:23:44- Good luck to you, Chris.- Thank you very much indeed.- Take care.
0:23:44 > 0:23:46So Chris thinks this is a perfect house to get him
0:23:46 > 0:23:48into the property developing world.
0:23:48 > 0:23:51Now, he doesn't think there is much work to be done and he also
0:23:51 > 0:23:54hasn't given himself much of a budget and a very small timescale.
0:23:54 > 0:23:58Will he get it done? We can find out later on in the programme.
0:24:00 > 0:24:02Coming up, in Littleover, Derby,
0:24:02 > 0:24:05this bungalow's price is bargain brilliance.
0:24:06 > 0:24:09For that £58,000, it is looking pretty good!
0:24:09 > 0:24:12And Chris was keeping it cheap with a two-grand budget in Liverpool,
0:24:12 > 0:24:14but plans always change.
0:24:14 > 0:24:19We decided we would do much more than just decorate the property.
0:24:23 > 0:24:26Back to Burnley, in Lancashire, now, where earlier,
0:24:26 > 0:24:29I saw this three-bedroom, end-of-terrace property
0:24:29 > 0:24:34bought for £33,500, over half as much again as the guide price.
0:24:34 > 0:24:38Your front room here - open fire, which is a nice touch.
0:24:38 > 0:24:41This, however, is a bit of an interesting design feature, don't
0:24:41 > 0:24:45you think? A bit of interior brick work forming a pillar.
0:24:45 > 0:24:47Oh, well.
0:24:47 > 0:24:48A few bedrooms there
0:24:48 > 0:24:52that are through into a really nice sized rear lounge.
0:24:52 > 0:24:54This is a good space, isn't it? Yeah, we like this.
0:24:54 > 0:24:56Unfortunately, the only thing that lets
0:24:56 > 0:24:59you down slightly at the moment is this room here,
0:24:59 > 0:25:01which is the current kitchen.
0:25:01 > 0:25:04And it is pretty small in relation to the rest of the property.
0:25:04 > 0:25:08The house was bought as a new joint venture by friends
0:25:08 > 0:25:10Rebecca and Tracy.
0:25:10 > 0:25:14One problem they hope to solve was the access to the large
0:25:14 > 0:25:16bathroom, which was via a bedroom.
0:25:16 > 0:25:20Their aim - to sell if they could generate enough profit.
0:25:20 > 0:25:22It is a good size, potential three bedrooms,
0:25:22 > 0:25:25three good-sized bedrooms. And we got it at what I thought
0:25:25 > 0:25:27was the right price on the day at auction.
0:25:27 > 0:25:30Well, it turned out Tracy is used to getting things at the right price.
0:25:30 > 0:25:34I bought tiles for £50 for 700.
0:25:34 > 0:25:36And then sold 300 of them for 450.
0:25:36 > 0:25:39- Oh, wow!- So that's paid for the bathroom suite.
0:25:39 > 0:25:40I just do things like that.
0:25:40 > 0:25:44- My friends call me like a female Del Boy, really.- Oh, yeah!
0:25:44 > 0:25:46A bit more successful one, I hope.
0:25:46 > 0:25:48THEY LAUGH
0:25:48 > 0:25:50Well, we are back four months later to see
0:25:50 > 0:25:55if this Del Girl has stuck to their £10,000 budget.
0:25:55 > 0:25:56# Starry-eyed
0:25:56 > 0:26:00# Hit, hit, hit, hit Hit me with lightning. #
0:26:00 > 0:26:04While Tracy was away on holiday, Rebecca widened the kitchen.
0:26:08 > 0:26:11The solid beech worktops took a long time to fit
0:26:11 > 0:26:14and they had two new windows installed.
0:26:15 > 0:26:19# Oh, everybody is starry-eyed
0:26:19 > 0:26:21# And everybody glows
0:26:21 > 0:26:26# Oh, everybody is starry-eyed. #
0:26:26 > 0:26:29Upstairs, the oversized bathroom has moved,
0:26:29 > 0:26:34trimmed down and changed colour. But more of that later.
0:26:34 > 0:26:38Tracy's bargain basement purchase of bulk tiles are out of the garage
0:26:38 > 0:26:42and onto the walls, making for a much brighter backdrop.
0:26:42 > 0:26:46# Into colours, colours And carousels. #
0:26:46 > 0:26:50A bright, modern colour scheme makes for a welcome change
0:26:50 > 0:26:52to the magnolia palette.
0:26:54 > 0:26:57New carpets in all but the bathroom give the house a fresh
0:26:57 > 0:27:00feel to the bedrooms and landing.
0:27:01 > 0:27:06# Oh, everybody is starry-eyed
0:27:06 > 0:27:09# And everybody glows. #
0:27:09 > 0:27:12All of the rooms have had various stages of re-plastering.
0:27:14 > 0:27:15The bedrooms have all been skimmed
0:27:15 > 0:27:18to cover the textured paint on the ceilings.
0:27:20 > 0:27:23Tracy and Rebecca have done most of the donkey work themselves,
0:27:23 > 0:27:26hiring in specialist trades when needed.
0:27:35 > 0:27:39# Oh, everybody is starry-eyed
0:27:39 > 0:27:41# And everybody glows
0:27:41 > 0:27:46# Oh, everybody is starry-eyed
0:27:46 > 0:27:48# And my body goes. #
0:27:53 > 0:27:55Like most of the rooms,
0:27:55 > 0:27:58the front reception room has a feature wallpaper.
0:28:00 > 0:28:04Making a welcome change from the once feature wall.
0:28:07 > 0:28:11And for more explanation of the layout changes, over to Tracy.
0:28:13 > 0:28:16You remember last time, to get to the bathroom,
0:28:16 > 0:28:18we had to go through the bedroom.
0:28:18 > 0:28:19To solve this issue,
0:28:19 > 0:28:24what we have done is we've taken out the entrance to the bedroom here
0:28:24 > 0:28:28and we have created a corridor down here and put the bathroom here.
0:28:28 > 0:28:31It did involve quite a lot of work
0:28:31 > 0:28:33because we had to move the waste pipe and things.
0:28:33 > 0:28:37But overall, I think the results have been fantastic.
0:28:39 > 0:28:42So this room, this used to be the bathroom.
0:28:42 > 0:28:44And as you can see, it has had a total makeover.
0:28:44 > 0:28:49We took out the suite. But we obviously had it replastered.
0:28:49 > 0:28:51And the result, I think, is really nice.
0:28:51 > 0:28:55And not to be outdone, Rebecca has got her own story.
0:28:55 > 0:28:57The kitchen is my favourite room in the property.
0:28:57 > 0:29:00We purchased a second-hand kitchen from the internet.
0:29:00 > 0:29:02We were quite lucky, it had a lot of units with it -
0:29:02 > 0:29:05a lot of base units and wall units as well.
0:29:05 > 0:29:07We actually found that fitting the base units was relatively easy.
0:29:07 > 0:29:09We did that work ourselves.
0:29:09 > 0:29:11We tried to fit the wall units ourselves,
0:29:11 > 0:29:14but we actually found that that is something we are not very good at
0:29:14 > 0:29:16and we didn't really have the right tools to do that job.
0:29:16 > 0:29:19So we got somebody in to fit the wall units for us.
0:29:19 > 0:29:23And what else did the girls learn from the experience?
0:29:23 > 0:29:27Moving bathrooms is very expensive.
0:29:27 > 0:29:30With, like, waste pipes and things like that, we have
0:29:30 > 0:29:32gone from having it on an outside wall to an inside wall.
0:29:32 > 0:29:36But we needed to do that to maintain the good-sized three bedrooms.
0:29:36 > 0:29:39And what sort of impact did the unforeseen costs
0:29:39 > 0:29:43have on the £8,000 to £10,000 budget window?
0:29:43 > 0:29:46The budget hit is now at £8,000.
0:29:46 > 0:29:48Oh. Not too bad then.
0:29:48 > 0:29:52But then again, Tracy does have a reputation in negotiation.
0:29:52 > 0:29:56We bought second-hand solid doors that would have been £60 each
0:29:56 > 0:29:58to buy brand-new, we bought 13.
0:29:58 > 0:30:01We ended up paying £30 for all of them.
0:30:01 > 0:30:05So it is just about shopping about and getting a better quality
0:30:05 > 0:30:06but at a cheaper price.
0:30:08 > 0:30:11We called in the advice of local estate agents with first-hand
0:30:11 > 0:30:13knowledge of the area.
0:30:13 > 0:30:17They are also aware of the impact of the area's regeneration,
0:30:17 > 0:30:20so they should give an up-to-date valuation for the intended
0:30:20 > 0:30:22sale price of the property,
0:30:22 > 0:30:25starting with the chap who saw it before work began.
0:30:25 > 0:30:28The change in the layout upstairs has been a great
0:30:28 > 0:30:29addition to the property.
0:30:29 > 0:30:31Now being able to access
0:30:31 > 0:30:34the bathroom is a real positive. So, yeah, very impressed.
0:30:34 > 0:30:37The property's decor makes the property stand out
0:30:37 > 0:30:39from other properties in the area.
0:30:39 > 0:30:40The fact they've gone
0:30:40 > 0:30:41for bright, modern colours
0:30:41 > 0:30:44will again make it appeal to a variety of different people
0:30:44 > 0:30:48instead of the norm, maybe the magnolias and creams of this world.
0:30:48 > 0:30:51I am rather partial to the custard creams myself.
0:30:51 > 0:30:55The agents thought this house could rent for between £425
0:30:55 > 0:30:59and £450 per calendar month, giving a yield of around 12%.
0:30:59 > 0:31:02But it is resale the girls are interested in.
0:31:02 > 0:31:05With just a bit of outside paint work and some final fixes,
0:31:05 > 0:31:10let's round it up to £42,000 they've spent, to make the maths easy.
0:31:11 > 0:31:14My estimation of sale price, this property would be £60,000.
0:31:14 > 0:31:16We would expect to achieve
0:31:16 > 0:31:19approximately £50,000 for the sale of this property.
0:31:19 > 0:31:23- Yeah, the top one seemed good. - Yeah.- Yeah.
0:31:23 > 0:31:26So a potential pre-tax profit of £18,000,
0:31:26 > 0:31:28based on that top figure.
0:31:28 > 0:31:31So what is next after the sale of this one?
0:31:32 > 0:31:35So the next venture is to find a rental.
0:31:35 > 0:31:37That can be done in a quick timescale as well.
0:31:37 > 0:31:38Yeah, like a week or two.
0:31:38 > 0:31:40- HE LAUGHS - Well, good luck with that one.
0:31:46 > 0:31:48Well, this is Littleover,
0:31:48 > 0:31:51about two miles from the centre of Derby.
0:31:51 > 0:31:56It was formerly a village owned by Edward The Confessor.
0:31:56 > 0:31:58Well, let's hope the property I'm here to see
0:31:58 > 0:32:02doesn't have too much to confess itself.
0:32:02 > 0:32:03Up for auction was this.
0:32:03 > 0:32:08It is a two-bedroom bungalow at a guide price of £58,000.
0:32:09 > 0:32:10It looks all right. Let's have a look.
0:32:13 > 0:32:17So, what have we got? Nice little entrance area there.
0:32:17 > 0:32:20And then into the main part of the bungalow. Classic sort of design.
0:32:20 > 0:32:24A sort of central-ish area here, off which the various rooms go.
0:32:24 > 0:32:26Toilet and bathroom facing you.
0:32:26 > 0:32:29Your bedroom is there. Yeah, reasonable size.
0:32:29 > 0:32:31This is your main living area.
0:32:31 > 0:32:33You've got this corner window
0:32:33 > 0:32:35throwing lots of light into the room.
0:32:35 > 0:32:39It is not huge, but a few good things.
0:32:39 > 0:32:42Looking like a relatively new central heating system,
0:32:42 > 0:32:46which is going to save you a few thousand quid. That is good.
0:32:46 > 0:32:47The kitchen at the back here.
0:32:47 > 0:32:53As you walk around, the floor feels a little bit springy in places,
0:32:53 > 0:32:55which would definitely want to be investigated.
0:32:55 > 0:32:57But the kitchen... It's dated.
0:32:57 > 0:32:59But overall, it is not a bad size,
0:32:59 > 0:33:02bearing in mind it is only a two-bedroom bungalow.
0:33:02 > 0:33:05I mean, for that £58,000, it's looking pretty good!
0:33:05 > 0:33:09The two bedrooms are a pretty neat size.
0:33:09 > 0:33:11And the loo is not bad either.
0:33:11 > 0:33:14There is also a very pleasant sunroom.
0:33:14 > 0:33:17Now, a popular style of house, such as a bungalow,
0:33:17 > 0:33:18in pretty good order,
0:33:18 > 0:33:20just needs a bit of fresh decor
0:33:20 > 0:33:23for a guide price of 58,000.
0:33:23 > 0:33:24So far, so good.
0:33:24 > 0:33:29However, there is something of a big issue we have not addressed.
0:33:29 > 0:33:31# There is an elephant
0:33:31 > 0:33:34# Standing in the room. #
0:33:34 > 0:33:36And that is almost the elephant in the room,
0:33:36 > 0:33:38if you want to use that expression.
0:33:38 > 0:33:41Which is that this bungalow is non-standard construction,
0:33:41 > 0:33:46probably made of concrete blocks. Is that a bad thing? Well...
0:33:46 > 0:33:47Yes and no.
0:33:47 > 0:33:51The yes is that it is very hard to get a mortgage, almost impossible
0:33:51 > 0:33:54in some cases when it comes to non-standard construction properties.
0:33:54 > 0:33:59The good news, though, is that the price you pay is considerably lower.
0:33:59 > 0:34:02If you are looking at it from the point of view of yields,
0:34:02 > 0:34:04the rent you are going to get on this place,
0:34:04 > 0:34:07non-standard or otherwise, it is going to be about the same.
0:34:07 > 0:34:09So your yield is going to be a lot higher.
0:34:09 > 0:34:11Clearly, you have got to be a cash purchaser.
0:34:11 > 0:34:15You can do things like put a brick skin around the outside to
0:34:15 > 0:34:18potentially make the property mortgageable but not always.
0:34:18 > 0:34:19Is it worth doing?
0:34:19 > 0:34:23Well, if you have got the cash to invest, then...probably not.
0:34:25 > 0:34:27I mean, if you have the cash to buy this outright,
0:34:27 > 0:34:30then the smart move could be just to take the yield
0:34:30 > 0:34:32with a straight renovation.
0:34:32 > 0:34:36Building a brick skin could cost at least ten grand.
0:34:36 > 0:34:38Time to take a look round the back, where again,
0:34:38 > 0:34:41we may have to use the non-standard word.
0:34:41 > 0:34:43Or is that two words?
0:34:44 > 0:34:47Well, at the back of the property, there is a sort of garden.
0:34:47 > 0:34:52I say sort of cos it is mostly this kind of weirdo concrete stuff.
0:34:52 > 0:34:55It almost looks like an enormous great turtle has fallen down
0:34:55 > 0:34:59and been squashed to create this really odd kind of thing.
0:34:59 > 0:35:03Well, what you can say about it is it is low-maintenance for sure.
0:35:03 > 0:35:06People from the turtle preservation society will be on the phone,
0:35:06 > 0:35:07I just know it.
0:35:07 > 0:35:11Anyway, more seriously, out the back, there is this garage.
0:35:11 > 0:35:15Well, that is useful apart from the fact that garages of a certain
0:35:15 > 0:35:18age often have construction issues.
0:35:18 > 0:35:21One, they can often be quite unstable. This one feels all right.
0:35:21 > 0:35:23But the roofs are often made of asbestos,
0:35:23 > 0:35:26so that is definitely something to be checked out by a professional.
0:35:26 > 0:35:31But lots of space, quite surprising. At least you wouldn't need a mower.
0:35:31 > 0:35:34I can assure you, dear viewer,
0:35:34 > 0:35:38that no giant turtles were squashed in the making of this show.
0:35:38 > 0:35:41I didn't think I would ever say that sentence. Anyway, moving on,
0:35:41 > 0:35:43let's ask the auctioneer who sold his property
0:35:43 > 0:35:45what his impressions are of it.
0:35:46 > 0:35:49First impressions of this property - it's double glazed,
0:35:49 > 0:35:51it has got a modern heating system in it.
0:35:51 > 0:35:54They have all got their limitations because of the way
0:35:54 > 0:35:57they were built, but this one actually is better than most.
0:35:57 > 0:35:59On the subject of those limitations,
0:35:59 > 0:36:03can the auctioneer shed any light on why they were built this way?
0:36:03 > 0:36:06These bungalows were built in 1946.
0:36:06 > 0:36:10The intention was that they would have a very limited lifetime.
0:36:10 > 0:36:12They are low on insulation.
0:36:12 > 0:36:15There would be problems with mortgageability.
0:36:15 > 0:36:18Some of them have been bricked round,
0:36:18 > 0:36:20which obviously puts that problem to bed.
0:36:20 > 0:36:23But you are talking about a major investment
0:36:23 > 0:36:25in the property to do that.
0:36:25 > 0:36:27So would it be worth that investment?
0:36:27 > 0:36:30One way to know is to look at its resale value.
0:36:30 > 0:36:32Because of its construction,
0:36:32 > 0:36:34there is always a cap on the value of these places.
0:36:34 > 0:36:38I would say you would achieve about £85,000.
0:36:38 > 0:36:40Now, if they brick round, obviously,
0:36:40 > 0:36:42you are improving the mortgageability of the property
0:36:42 > 0:36:45and therefore saleability, which has an affect on value,
0:36:45 > 0:36:48but you are not going to push its value very much greater.
0:36:48 > 0:36:50You might add £6,000, £7,000, £8,000
0:36:50 > 0:36:52to the figure I have just quoted.
0:36:53 > 0:36:56So is it worth bricking round? Probably not.
0:36:56 > 0:36:59But rental could be the path for this bungalow.
0:36:59 > 0:37:03If you spend modest money on this with a view to renting out,
0:37:03 > 0:37:06you'd achieve a rental value of upwards of £500 a calendar month.
0:37:06 > 0:37:10Probably not quite as much as 550, but 500, 525.
0:37:11 > 0:37:14Well, the non-standard construction is obviously going to cause
0:37:14 > 0:37:18a few issues. The bungalows like this are eternally popular.
0:37:18 > 0:37:23And that low guide price, I'm sure, attracted bidders at the auction.
0:37:23 > 0:37:25Let's see what happened.
0:37:28 > 0:37:32Lot 51. We are onto the last couple of pages, ladies and gentlemen.
0:37:32 > 0:37:34Start me where you like with
0:37:34 > 0:37:35that one. May I say 60,000 for it?
0:37:35 > 0:37:3858 to start me. Good value, these.
0:37:38 > 0:37:4056. Bid me where you will.
0:37:40 > 0:37:42Thank you, 56,000 is the starting bid.
0:37:42 > 0:37:45At £56,000.
0:37:45 > 0:37:4657, I've got.
0:37:46 > 0:37:4857 is bid. 58.
0:37:48 > 0:37:5058. 59.
0:37:50 > 0:37:5359. At 60. 60,000.
0:37:53 > 0:37:5561 somewhere else?
0:37:55 > 0:37:5761. At 61,000.
0:37:57 > 0:38:0062? 62 is bid.
0:38:00 > 0:38:02At 62. 63.
0:38:02 > 0:38:05It may have been near the end of the auction,
0:38:05 > 0:38:09but two determined bidders were going to slug it out -
0:38:09 > 0:38:11one obscured from our view behind the pillar
0:38:11 > 0:38:14and the other dead centre in the room.
0:38:14 > 0:38:18We rejoin the bidding at £69,500.
0:38:18 > 0:38:2069.5. 70,000.
0:38:20 > 0:38:2270,500.
0:38:22 > 0:38:2471. £71,000.
0:38:24 > 0:38:26500 elsewhere?
0:38:26 > 0:38:2971,000, right in front of me.
0:38:29 > 0:38:32At £71,000, once.
0:38:32 > 0:38:34Twice. Third time.
0:38:34 > 0:38:37Sold at 71, sir, well done. Thank you.
0:38:37 > 0:38:40I thought I recognised the successful bidders who
0:38:40 > 0:38:44paid £71,000. It is Dawn and John.
0:38:44 > 0:38:47We first met couple back in 2012
0:38:47 > 0:38:49when they bought a property...
0:38:49 > 0:38:51that looks remarkably similar
0:38:51 > 0:38:55to this one and, in fact, was on the same estate.
0:38:55 > 0:38:59And it wasn't their first of these little prefab bungalows.
0:38:59 > 0:39:02- So why this particular property, then?- We have already got one.- Oh?
0:39:02 > 0:39:05- Just like this.- Right.- Which is at the other end of the estate.
0:39:05 > 0:39:08- Oh, OK.- And it was very successful.
0:39:08 > 0:39:13# What if I had to do it over
0:39:13 > 0:39:17# Over again?
0:39:18 > 0:39:23# I'd do the same all again. #
0:39:23 > 0:39:27And now they have another Littleover post-war prefab.
0:39:27 > 0:39:31So they know these properties well. So what are the plans for this one?
0:39:31 > 0:39:34- Dawn, John, good to see you again. - And you.- And you.
0:39:34 > 0:39:37So why are you such a fan of these little bungalows?
0:39:37 > 0:39:39They rent fairly easily.
0:39:39 > 0:39:42Our experience has been that they rent fairly easily.
0:39:42 > 0:39:45And we are buying them for investment purpose
0:39:45 > 0:39:48- rather than resale.- So the fact that it is non-standard construction
0:39:48 > 0:39:49wasn't an issue to you at all?
0:39:49 > 0:39:52You obviously knew about it cos you knew the properties.
0:39:52 > 0:39:54No, I don't think it is an issue.
0:39:54 > 0:39:57Although I believe they are probably difficult to borrow against.
0:39:57 > 0:39:59People that have got them seem to like them.
0:39:59 > 0:40:03And Dawn and John like them for their rental potential.
0:40:03 > 0:40:05They have a portfolio of properties
0:40:05 > 0:40:07which are part of their future retirement fund.
0:40:07 > 0:40:11John is a charted accountant and Dawn is a financial director,
0:40:11 > 0:40:15so if anyone is going to watch the pennies, it has to be them.
0:40:15 > 0:40:18So what will they be splashing the cash on here?
0:40:18 > 0:40:20This one has got double glazed windows,
0:40:20 > 0:40:22which do need a little attention.
0:40:22 > 0:40:25We shall need soffits, fascias, gutterings.
0:40:25 > 0:40:27But that is probably the majority of the stuff
0:40:27 > 0:40:28on the exterior of the building.
0:40:28 > 0:40:31Internally, it is a matter of how far we go.
0:40:31 > 0:40:36- The last one, we gutted it and we insulated all the walls.- Oh, wow.
0:40:36 > 0:40:38I think we shall insulate the walls here.
0:40:38 > 0:40:40And how do you insulate, with a board on the inside?
0:40:40 > 0:40:42Yes, we put plasterboard.
0:40:42 > 0:40:44But on the inside of the plasterboard, there is
0:40:44 > 0:40:47- about half an inch to an inch of polystyrene.- Right.
0:40:47 > 0:40:51And batten that off. And it has made a big difference.
0:40:51 > 0:40:54So we shall do that, and then we will go from there.
0:40:54 > 0:40:58We're in debate on the kitchen being replaced at the moment.
0:40:58 > 0:41:00So, how will you decide on the kitchen?
0:41:00 > 0:41:02What will make you make the decision there?
0:41:02 > 0:41:07Well, I suppose we didn't take that much notice of it because
0:41:07 > 0:41:11it wasn't in as bad of condition as the other two we had taken over.
0:41:11 > 0:41:15So I came away with the impression that it would be OK.
0:41:15 > 0:41:19- John came away with the impression it would need replacing.- To go.
0:41:19 > 0:41:25- So that you will find us later on inspecting.- Right.
0:41:25 > 0:41:27So you will have to make a decision between you
0:41:27 > 0:41:29whether or not you do it. OK.
0:41:29 > 0:41:31So what about the garage?
0:41:31 > 0:41:34The trouble with the garage is possibly the roof.
0:41:34 > 0:41:38It has got a broken panel in it, so we'll look at it at that point.
0:41:38 > 0:41:42But at the same time, we shall get expert advice on it as to
0:41:42 > 0:41:45whether we can make it safe because of the material it may be made of.
0:41:45 > 0:41:47And if not, we shall remove the roof.
0:41:47 > 0:41:50The big unknown at the moment is the floors.
0:41:50 > 0:41:52There is some movement in the floors.
0:41:52 > 0:41:55I suspect we could overboard them, but when we get the copies,
0:41:55 > 0:41:57we will just see what is required.
0:41:57 > 0:42:00Right. They are springy in certain places, aren't they?
0:42:00 > 0:42:01A bit more than springy in certain places.
0:42:01 > 0:42:03THEY LAUGH
0:42:03 > 0:42:04Off the top of your head,
0:42:04 > 0:42:07do you have any idea what might be causing that?
0:42:07 > 0:42:09It is possibly a joist that is gone.
0:42:09 > 0:42:13Or it may be that the floorboards are laid the wrong way.
0:42:13 > 0:42:16So mostly structural work for Dawn and John.
0:42:16 > 0:42:19And then a bit in the kitchen, maybe.
0:42:19 > 0:42:22They have certainly saved a few bob by not bricking round,
0:42:22 > 0:42:24but how much will they spend?
0:42:24 > 0:42:28- I don't think it should exceed 15,000.- Mm-hm.
0:42:28 > 0:42:31And how hands-on are you? Remind me.
0:42:31 > 0:42:35- We are excellent, we pick people to do it.- Right, OK.
0:42:35 > 0:42:36So completely hands-off, then.
0:42:36 > 0:42:39And in terms of the timescale for this one, then?
0:42:39 > 0:42:41Three months, possibly four.
0:42:41 > 0:42:44So will there be more properties that you will be buying?
0:42:44 > 0:42:47- I don't know. There will be one more, I think.- One more, yeah.
0:42:49 > 0:42:53One more would take the couple to their target of 20 properties.
0:42:53 > 0:42:57However, John's fondness for these bungalows is not an entirely
0:42:57 > 0:42:59recent thing.
0:42:59 > 0:43:02- Many years ago, I used to drive for a rock group.- A rock group?
0:43:02 > 0:43:05- The drummer of this group... - What was the group called?
0:43:05 > 0:43:07- It was The Heralds.- The Heralds.
0:43:07 > 0:43:12- Were they national? - Not really, very local.
0:43:12 > 0:43:14And the drummer lived in one of these.
0:43:14 > 0:43:17And I remember collecting him one night, going into the house,
0:43:17 > 0:43:20looking at it and thinking how surprised
0:43:20 > 0:43:23I was, the amount of room in it and what we could...
0:43:23 > 0:43:25What it was, in fact.
0:43:25 > 0:43:27- Some 30 or 40 years later... - THEY LAUGH
0:43:27 > 0:43:28Brilliant.
0:43:28 > 0:43:32- And congratulations with this. - And good luck with it.- Thank you.
0:43:32 > 0:43:35Onwards and upwards. Nice to see you both again.
0:43:35 > 0:43:37- Thank you.- Thank you.
0:43:38 > 0:43:40So, John and Dawn sticking with what they know
0:43:40 > 0:43:43and buying another one of these little bungalows.
0:43:43 > 0:43:46And the whole issue of that non-standard structure not
0:43:46 > 0:43:49being a problem for them. The only things they need to resolve...
0:43:49 > 0:43:51The kitchen, will it be replaced?
0:43:51 > 0:43:55The garage roof - what will happen to that? And those floorboards...
0:43:55 > 0:43:59Ugh! How bad is that problem? Well, we can find out later in the show.
0:44:03 > 0:44:05So, the hard work is over for our first buyer,
0:44:05 > 0:44:07but what about the others?
0:44:07 > 0:44:08Yes, has it all gone to plan?
0:44:08 > 0:44:10Will they see the fruits of their labours?
0:44:10 > 0:44:12Let's find out.
0:44:14 > 0:44:17Time now to return to Huyton, in Liverpool, and this
0:44:17 > 0:44:22three-bed, detached house with a guide price of £80,000+.
0:44:22 > 0:44:24We were off to a good start downstairs with a good
0:44:24 > 0:44:26spacious layout.
0:44:26 > 0:44:28So then I took a look upstairs.
0:44:28 > 0:44:31Nothing unusual upstairs - three bedrooms and a bathroom.
0:44:31 > 0:44:33Apart from this strange hole.
0:44:35 > 0:44:39Aside from that little oddity, structurally, the house seemed OK.
0:44:39 > 0:44:41But when it came to decoration,
0:44:41 > 0:44:43the whole thing was going to have to be redone.
0:44:45 > 0:44:50# And I just hope that you can forgive us
0:44:53 > 0:44:57# But everything must go! #
0:44:59 > 0:45:04On the positive side, redecoration on that scale will always add value.
0:45:05 > 0:45:08And having paid £133,000 for the house at auction,
0:45:08 > 0:45:12that is exactly what new owner Chris was hoping.
0:45:12 > 0:45:16I just wondered if he had given himself enough money for the work.
0:45:16 > 0:45:19I would think we would be able to sort this property
0:45:19 > 0:45:22out for probably under a couple of thousand pounds.
0:45:22 > 0:45:24- That little?- That little.
0:45:24 > 0:45:27- The new kitchen is going to be the major expense.- Yeah.
0:45:27 > 0:45:29But other than that, it is just decorating.
0:45:29 > 0:45:33# Back to life, back to reality. #
0:45:35 > 0:45:38Well, Chris was a former painter and decorator.
0:45:38 > 0:45:42But even doing all the work itself, two grand didn't seem a lot to me.
0:45:43 > 0:45:45He had given himself one to two months,
0:45:45 > 0:45:48and I was sure he'd bring this house back to life.
0:45:48 > 0:45:50But was the budget realistic?
0:45:53 > 0:45:56Seven months later and we have returned to see how Chris got on.
0:46:06 > 0:46:08The dated decor has disappeared.
0:46:08 > 0:46:10And the house now feels like the bright,
0:46:10 > 0:46:12spacious family home it should be.
0:46:12 > 0:46:15He has still got some jobs to finish,
0:46:15 > 0:46:18but it looks like Chris has been an incredibly busy man.
0:46:18 > 0:46:22We have replastered all the walls and all the ceilings.
0:46:22 > 0:46:25We've replaced all the floors in every room.
0:46:25 > 0:46:30We have put new cabinets in the hall. We have replaced windows.
0:46:30 > 0:46:33We have replaced the patio doors behind me.
0:46:33 > 0:46:37And we have done the gardens at the front and rear.
0:46:38 > 0:46:40And what a transformation it is.
0:46:40 > 0:46:44I have got to confess, I was worried about Chris's budget.
0:46:44 > 0:46:46However, it looks like he has found
0:46:46 > 0:46:49some interesting money-saving techniques.
0:46:49 > 0:46:51I think initially we had doubts as to whether
0:46:51 > 0:46:53we were going to need to replace the kitchen,
0:46:53 > 0:46:55but when we went round, had a closer look at it,
0:46:55 > 0:46:57it most definitely needed replacing.
0:46:57 > 0:47:02So rather than buying a cheap, new one, we went for a quality,
0:47:02 > 0:47:04reasonably priced, second-hand one.
0:47:05 > 0:47:07And it's just as good as a new one.
0:47:07 > 0:47:09You wouldn't know the difference.
0:47:09 > 0:47:12# And you're just a brand-new second-hand
0:47:13 > 0:47:16# No man no want fool
0:47:16 > 0:47:19# You're just a brand-new second-hand. #
0:47:21 > 0:47:24Tut-tut, Chris, we don't say second-hand nowadays.
0:47:24 > 0:47:27Pre-loved is the jargon now.
0:47:27 > 0:47:29Seriously though, it is
0:47:29 > 0:47:32always worth keeping an eye out for bargains like this.
0:47:32 > 0:47:36You can look on the internet, in your local paper or even sometimes
0:47:36 > 0:47:38kitchen showrooms sell off display kitchens.
0:47:38 > 0:47:42It might all take a little longer to track down the right thing,
0:47:42 > 0:47:44but it can save you lots of cash.
0:47:44 > 0:47:47More money-saving has been going on in the bathroom.
0:47:47 > 0:47:51He saved the suite that was there and updated the decoration.
0:47:53 > 0:47:55Chris hired contractors to carry out the skilled work
0:47:55 > 0:47:57such as plastering and electrics.
0:47:57 > 0:47:59But as a former painter and decorator,
0:47:59 > 0:48:02did he get stuck in to the rest as he'd hoped?
0:48:02 > 0:48:04The rest of the work was done by myself.
0:48:04 > 0:48:07My son Aaron
0:48:07 > 0:48:09did all the painting and decorating.
0:48:09 > 0:48:11A fantastic job.
0:48:11 > 0:48:14And my partner, Josephine,
0:48:14 > 0:48:17she provided all the decoration
0:48:17 > 0:48:20for the property after it had been renovated.
0:48:22 > 0:48:23A good team effort.
0:48:23 > 0:48:26And Josie has added to the appeal by dressing the house.
0:48:27 > 0:48:29It helps some buyers see how the space can be used
0:48:29 > 0:48:31when there is furniture in place.
0:48:31 > 0:48:33What is Chris's favourite bit?
0:48:33 > 0:48:37I am most pleased with the flooring that was laid, actually.
0:48:37 > 0:48:40It is quite unusual and it is very, very glossy, the floor.
0:48:40 > 0:48:44And I had never seen that before. But, yeah, I like that very much.
0:48:44 > 0:48:49# She She, she, she, shine on
0:48:49 > 0:48:52# She, she, she, shine on. #
0:48:54 > 0:48:56They are impressive.
0:48:56 > 0:48:59I mean, I would bet they are the shiniest floors in the world.
0:48:59 > 0:49:01I suppose I can't confirm that.
0:49:01 > 0:49:06Anyway, are you thinking what I am thinking? Two-grand budget?
0:49:06 > 0:49:08Come on, Chris, you have been clever with the dosh, but...
0:49:08 > 0:49:10No, no way.
0:49:11 > 0:49:15The original budget we set ourselves was quite low
0:49:15 > 0:49:17at just £2,000, and that
0:49:17 > 0:49:22is because we believed that it was just decoration that was required.
0:49:22 > 0:49:24We decided, though,
0:49:24 > 0:49:28we would do much more than just decorate the property.
0:49:28 > 0:49:31And we have now spent a total of around £5,000.
0:49:33 > 0:49:36They may have spent a lot more and taking seven months rather
0:49:36 > 0:49:40than the intended two, but it is still a pretty reasonable timescale.
0:49:41 > 0:49:44I think the house looks all the better for the extra work.
0:49:45 > 0:49:48But what do two local estate agents think?
0:49:48 > 0:49:49I like what the gentleman has done.
0:49:49 > 0:49:51It is compact.
0:49:51 > 0:49:53It is easy to decorate.
0:49:53 > 0:49:56Easy to fill with furniture and make it look lived in.
0:49:56 > 0:49:58So all those convenient factors.
0:49:58 > 0:50:01I think the standard of finish is very good,
0:50:01 > 0:50:03although there are some jobs to be done yet.
0:50:03 > 0:50:07And I think the neutral style is just right, spot on.
0:50:08 > 0:50:12Having now spent a total of five grand on the renovation on top of
0:50:12 > 0:50:15the £133,000 he spent at auction,
0:50:15 > 0:50:17will there still be some profit for Chris?
0:50:19 > 0:50:22Let's get those all-important figures.
0:50:22 > 0:50:26I would say sale wise, £170,000.
0:50:26 > 0:50:29And I would say rental wise, £850 per calendar month.
0:50:29 > 0:50:34I would expect to achieve a sale price of £173,000
0:50:34 > 0:50:39and a rental valuation of £750 per calendar month.
0:50:39 > 0:50:40I think that is excellent.
0:50:40 > 0:50:43That is pretty much in line with what we expected.
0:50:43 > 0:50:48The rental value is excellent for this area, but we won't be renting
0:50:48 > 0:50:51the property out, so it'll just be straight on the market for sale.
0:50:53 > 0:50:58Chris isn't interested in the yield on his 138 grand investment,
0:50:58 > 0:51:01which would be just over 7% on that top rental figure.
0:51:02 > 0:51:07Instead, he will be aiming for that potential 35 grand pre-tax profit.
0:51:07 > 0:51:11So things have gone pretty well for Chris on his first auction purchase.
0:51:11 > 0:51:13And by the way, just in case you were in any doubt
0:51:13 > 0:51:15about that floor thing...
0:51:16 > 0:51:20This is actually the shiniest floor in the world. That is a fact.
0:51:28 > 0:51:31Earlier in the show, I was in Littleover, in Derby,
0:51:31 > 0:51:33where I met Dawn and John.
0:51:33 > 0:51:36They had already built up a portfolio of rentals
0:51:36 > 0:51:40including similar bungalows to this one they just purchased.
0:51:40 > 0:51:44In fact, John went quite a way back with these bungalows.
0:51:47 > 0:51:49Many years ago, I used to drive for a rock group.
0:51:49 > 0:51:51The drummer lived in one of these.
0:51:51 > 0:51:53And I remember collecting him one night, going into the house
0:51:53 > 0:51:55and looking at it.
0:51:55 > 0:51:59And thinking how much, how surprised I was at the amount of room in it.
0:51:59 > 0:52:01And this property was certainly spacious.
0:52:01 > 0:52:06But Dawn and John's £71,000 purchase had issues,
0:52:06 > 0:52:08like it's non-standard construction,
0:52:08 > 0:52:11a potential asbestos roof garage
0:52:11 > 0:52:14and a few other oddities.
0:52:14 > 0:52:16The big unknown at the moment is the floors.
0:52:16 > 0:52:19There is some movement in the floors.
0:52:19 > 0:52:22I suspect we could overboard them, but when we get the copies,
0:52:22 > 0:52:24we will just see what is required.
0:52:24 > 0:52:26Right. They are springy in certain places, aren't they?
0:52:26 > 0:52:28They're a bit more than springy in certain places.
0:52:28 > 0:52:30THEY LAUGH
0:52:30 > 0:52:33The other big debate for the couple was over
0:52:33 > 0:52:36whether or not to renovate the kitchen, which was tired
0:52:36 > 0:52:40but still serviceable, as they intended to rent the property out.
0:52:40 > 0:52:43So six months on, how is it looking?
0:52:56 > 0:52:59Looking rental-ready, I'd say.
0:52:59 > 0:53:02But what about those challenges with the floors and the garage roof?
0:53:06 > 0:53:10We haven't had the problems which we have had with others.
0:53:10 > 0:53:12We hadn't had problems we anticipated,
0:53:12 > 0:53:14so the experience has been good.
0:53:14 > 0:53:19The floors and the garage roof were absolute bonuses.
0:53:19 > 0:53:21I didn't think we should escape costs on both items,
0:53:21 > 0:53:23and we have done.
0:53:23 > 0:53:25So that was a bonus for the place.
0:53:27 > 0:53:30Yes, it turned out that the springiness in the floors was
0:53:30 > 0:53:34caused by hatches that hadn't been braced after the central
0:53:34 > 0:53:36heating had been put in.
0:53:36 > 0:53:38And the garage roof? Well, thankfully, it wasn't
0:53:38 > 0:53:40asbestos after all.
0:53:40 > 0:53:43So what changes have been made?
0:53:44 > 0:53:49- We started on the exterior by doing the soffits, didn't we?- Yeah.
0:53:49 > 0:53:50Gutterings were OK.
0:53:50 > 0:53:52Checked the windows and made sure they were all right.
0:53:52 > 0:53:57Did the garage roof and put plastic cladding all around the garage.
0:53:57 > 0:53:59And a plastic door in there.
0:53:59 > 0:54:02All the concrete work outside has been steam cleaned.
0:54:02 > 0:54:06And in the premises, we ripped out all of the cabinets that
0:54:06 > 0:54:09were in, replastered, redecorated,
0:54:09 > 0:54:11retiled the kitchen, the bathroom.
0:54:11 > 0:54:14- And of course, it was re-carpeted, naturally.- Naturally, yeah.
0:54:14 > 0:54:15That finishes it up.
0:54:17 > 0:54:20And finished off nicely, in my opinion, Dawn.
0:54:20 > 0:54:23What did they decide to do with the kitchen in the end?
0:54:23 > 0:54:28We have replastered the kitchen and totally retiled it.
0:54:28 > 0:54:32The fittings were fine, there were no problems with them at all.
0:54:32 > 0:54:35We were pleased to find that once we had taken
0:54:35 > 0:54:38the tiling from the kitchen floor,
0:54:38 > 0:54:40the timber floor underneath was fine.
0:54:40 > 0:54:43And we've put cushioned flooring on it as well.
0:54:45 > 0:54:48So now the place is looking much improved.
0:54:48 > 0:54:50And having dodged the dangers of structural work,
0:54:50 > 0:54:53they must have saved a few bob.
0:54:53 > 0:54:54I thought our repair bills
0:54:54 > 0:54:57would be somewhere between £13,000 and £15,000.
0:54:57 > 0:54:59But in fact, we have come out at 12.
0:55:01 > 0:55:04The project took six months, a good bit over their four-month
0:55:04 > 0:55:08timescale as their team were working on other properties for the couple.
0:55:08 > 0:55:12But after such a good finish, they must be happy.
0:55:12 > 0:55:14Well, I think we will tell you how happy we are after
0:55:14 > 0:55:17we have had the valuation of the rental.
0:55:17 > 0:55:22Bang on cue, John, it's two local estate agents.
0:55:22 > 0:55:24Almost like we planned it, eh?
0:55:24 > 0:55:26What do they think of the property
0:55:26 > 0:55:29and the changes the couple have made?
0:55:29 > 0:55:32The best selling points of this property are clearly the detached
0:55:32 > 0:55:35garage and the off-road parking, cos it is quite difficult
0:55:35 > 0:55:36to park round here.
0:55:36 > 0:55:37Other items to note are
0:55:37 > 0:55:41the standard of the finish on the interior. The only thing that
0:55:41 > 0:55:43I would have liked to have seen is perhaps a new kitchen.
0:55:43 > 0:55:46Everything else is way above the standard of the kitchen.
0:55:46 > 0:55:48So it would have been nice to see something a little bit new
0:55:48 > 0:55:50and sparkly in there.
0:55:50 > 0:55:54The standard of finish is very good. New decor and carpets throughout.
0:55:54 > 0:55:56Always makes a nice feel to have it neat and fresh and tidy.
0:55:56 > 0:55:58Initial thoughts are very good.
0:55:58 > 0:56:01The main selling points, really, would be the low-maintenance garden,
0:56:01 > 0:56:04something that somebody needs to come into and do very little to.
0:56:07 > 0:56:12John and Dawn have spent around £83,000 so far. They want to rent.
0:56:12 > 0:56:16But let's see what the resale values might be.
0:56:16 > 0:56:19Sales, I would recommend a sales valuation of around 90,000,
0:56:19 > 0:56:21possibly £95,000.
0:56:21 > 0:56:24These properties are particularly difficult to sell cos
0:56:24 > 0:56:27of their non-standard construction. Taking that into consideration,
0:56:27 > 0:56:30I would put this on the market at up to £80,000.
0:56:30 > 0:56:32They are difficult to sell,
0:56:32 > 0:56:35which is why I am reluctant to go any higher than
0:56:35 > 0:56:37that on the sale price.
0:56:37 > 0:56:42I wouldn't want to sell it for really less than 100,000.
0:56:42 > 0:56:44And I didn't buy it for that purpose anyway.
0:56:44 > 0:56:48But it is nice to know, at least it is on the right side.
0:56:49 > 0:56:51Yes, the right side, John.
0:56:51 > 0:56:53At that £95,000 valuation,
0:56:53 > 0:56:58where there could be a £12,000 pre-tax profit.
0:56:58 > 0:57:01But the £80,000 valuation would be...
0:57:01 > 0:57:03Well, let's just call it the wrong side.
0:57:03 > 0:57:07Proof that non-standard construction creates problems for sales
0:57:07 > 0:57:08if you ever need it.
0:57:08 > 0:57:11Just as well the couple want to rent.
0:57:11 > 0:57:14I would estimate a rental valuation for this property to
0:57:14 > 0:57:17be £525 per calendar month.
0:57:17 > 0:57:20I would recommend a rental valuation of £525
0:57:20 > 0:57:21per calendar month.
0:57:21 > 0:57:23I think they are a little bit low.
0:57:23 > 0:57:27They are probably right for the bungalows generally around here,
0:57:27 > 0:57:30but bearing in mind that this has got off-road parking -
0:57:30 > 0:57:32most of them haven't - and a garage,
0:57:32 > 0:57:36and a conservatory, I think it will make a little bit more than that.
0:57:38 > 0:57:41John thinks the valuations are low, but it would still give them
0:57:41 > 0:57:46a yield of 7.5%, that is all good money for the retirement fund.
0:57:46 > 0:57:52And that retirement fund started out when John was a rock star's roadie!
0:57:52 > 0:57:54Any plans to get out of the property game
0:57:54 > 0:57:56and back to the music business, John?
0:57:56 > 0:57:59No, I've had to give it up. I think it is something to do with age.
0:57:59 > 0:58:02THEY CHUCKLE
0:58:05 > 0:58:08Property developing has its highs and it has its lows,
0:58:08 > 0:58:10but more often than not, it is a rewarding process.
0:58:10 > 0:58:13When all is said and done, it is always great to see the end result.
0:58:13 > 0:58:16Yes, and we've got lots more to show you next time,
0:58:16 > 0:58:17here on Homes Under The Hammer.
0:58:17 > 0:58:19- See you then.- Bye-bye.- Bye.