0:00:02 > 0:00:05Hello. There's no set mould you have to fit when getting into property.
0:00:05 > 0:00:06You could be a young couple starting out,
0:00:06 > 0:00:09- or you could be a retiree making a new start.- Yes.
0:00:09 > 0:00:11The end result should be exactly the same.
0:00:11 > 0:00:14- You're making the investment because you want to make some money.- Yes.
0:00:14 > 0:00:17So where do you go to get the best possible deal?
0:00:17 > 0:00:20How about heading down to your local property auction?
0:00:45 > 0:00:47Buying wisely is the name of the game in property
0:00:47 > 0:00:49if you're going to get a great return.
0:00:49 > 0:00:52But did the buyers on today's show manage to do just that?
0:00:52 > 0:00:55Let's find out what they bought.
0:00:55 > 0:00:57In Liverpool, I like a development plan
0:00:57 > 0:01:01so much, I might have a new pad at this three-bed mid-terrace.
0:01:01 > 0:01:04I might keep in touch for a little bit of rent off you.
0:01:04 > 0:01:05HE LAUGHS
0:01:05 > 0:01:09In Cwmaman, Wales, I like the show home style I'm seeing,
0:01:09 > 0:01:11but it's so perfect, I have to ask...
0:01:11 > 0:01:13Is this the right house? I think it is.
0:01:13 > 0:01:15HE LAUGHS
0:01:15 > 0:01:19And in Glasgow, I like this shop, but I don't like the thought
0:01:19 > 0:01:22of clambering through the communal area to use the loo.
0:01:22 > 0:01:25Just to get to the loo? Not me.
0:01:27 > 0:01:29All these properties are bought at auction.
0:01:29 > 0:01:30We'll find out who got them
0:01:30 > 0:01:34and how much they paid when these homes went under the hammer.
0:01:34 > 0:01:35Sold.
0:01:43 > 0:01:47Knotty Ash is an area in Liverpool with plenty of green spaces,
0:01:47 > 0:01:51loads of amenities, and if you're thinking of a buy to let,
0:01:51 > 0:01:54Alder Hey Children's Hospital is nearby,
0:01:54 > 0:01:56so workers there might be your clientele.
0:01:58 > 0:02:02The property I'm here to see is about five miles away from Liverpool's
0:02:02 > 0:02:06busy city centre, just a few minutes away from the A57, which has
0:02:06 > 0:02:10direct links to the motorways, which is great for commuters of course.
0:02:10 > 0:02:13In the catalogue, it says it's a three-bed,
0:02:13 > 0:02:17mid-terrace house with a guide price of £35-£40,000.
0:02:17 > 0:02:19I'm going to take a look.
0:02:19 > 0:02:24So the frontage has seen better days, but we'll come back to that.
0:02:24 > 0:02:28Don't be put off by first impressions. Think of the location.
0:02:28 > 0:02:30More or less straight into the lounge.
0:02:30 > 0:02:34A little small hallway here. Stairs going up to the bedrooms.
0:02:34 > 0:02:37And as you come into the living room area, you can
0:02:37 > 0:02:38see it's a little bit tired.
0:02:38 > 0:02:41I have noticed there's central heating there, so that's good.
0:02:41 > 0:02:44And there's a bit of debris which has been left. And...
0:02:44 > 0:02:48as I can see here, there's a little bit of bubbling underneath this wallpaper.
0:02:48 > 0:02:50And a bit of water stainage as well,
0:02:50 > 0:02:53so there must have been a leak or some kind of damp up there.
0:02:53 > 0:02:56As you can see, there's a bit of a mess underneath here as well.
0:02:56 > 0:02:58You'd need to get that sorted as soon as possible.
0:02:58 > 0:03:02So through into the kitchen, and you've got signs of previous owners again.
0:03:02 > 0:03:05It's a bit messy. You've got the bathroom there.
0:03:05 > 0:03:08Again, dated, would need changing.
0:03:08 > 0:03:12A bit further into the kitchen, which would all need changing.
0:03:12 > 0:03:13You'd have to start again in here.
0:03:13 > 0:03:18I can see the hob down here is smashed. So start again.
0:03:18 > 0:03:20It's a decent space here, actually.
0:03:20 > 0:03:22You could have a bit of a dining area there,
0:03:22 > 0:03:25put a brand-new kitchen in, tidy it up.
0:03:25 > 0:03:26I think you're onto a winner.
0:03:26 > 0:03:28You're going to need some skips here,
0:03:28 > 0:03:30but overall the space downstairs is good.
0:03:32 > 0:03:34So upstairs then, we've got three bedrooms.
0:03:34 > 0:03:39Two just at the back of the property, which look to be a good size.
0:03:39 > 0:03:42And into what would be the master bedroom.
0:03:42 > 0:03:46It is a bit messy, there's a bit of rubble around, but no toilet,
0:03:46 > 0:03:50no bathroom up here. Maybe you could stick a toilet and sink in there.
0:03:50 > 0:03:55Just an option. But it's a decent sized bedroom, when you get rid of all this mess.
0:03:55 > 0:03:58Apart from that damp downstairs, everything to me
0:03:58 > 0:04:01seems very superficial.
0:04:01 > 0:04:04Don't be scared, look past all the stuff that has been left,
0:04:04 > 0:04:08focus on the important things like that damp we saw downstairs.
0:04:10 > 0:04:11I just wanted to come outside and see
0:04:11 > 0:04:14if I can see where that water may be coming from.
0:04:14 > 0:04:16You can see there's definite water damage here.
0:04:16 > 0:04:19That's definitely more than what the weather has done.
0:04:19 > 0:04:21And I can just notice over here, it may have
0:04:21 > 0:04:24found its way into the masonry as well, and down here as well.
0:04:24 > 0:04:27There's more signs that it may have got into the masonry.
0:04:27 > 0:04:30So, get a specialist to look at that, get it sorted first time
0:04:30 > 0:04:32so you don't have to go back to it again.
0:04:32 > 0:04:35If you go back to it, it is going to cost you more money.
0:04:35 > 0:04:36And while you're at the front
0:04:36 > 0:04:40having the exterior's masonry fixed, why not keep up with the Joneses?
0:04:42 > 0:04:45As I look around the neighbouring houses, I can see a lot of them
0:04:45 > 0:04:50have turned their front gardens into driveways or off-street parking.
0:04:50 > 0:04:54And they've done the same here. The kerb's already been lowered just here.
0:04:54 > 0:04:58All you'd have to do is put some new gates up, maybe re-slab,
0:04:58 > 0:05:02get it looking nice and pretty and you would be done.
0:05:02 > 0:05:05Do check with your local council planners about the permeable
0:05:05 > 0:05:08materials you should use. As we know,
0:05:08 > 0:05:10flooding is a big issue these days.
0:05:10 > 0:05:13And while you're at it, you might want to consider
0:05:13 > 0:05:16applying for permission to get that bathroom upstairs.
0:05:16 > 0:05:19Out the back, I can see that all the houses along either way
0:05:19 > 0:05:21have an extension.
0:05:21 > 0:05:24My first thought was, can you build a double extension,
0:05:24 > 0:05:27maybe get that bathroom upstairs? But judging from what I
0:05:27 > 0:05:32can see, nobody else seems to have a double themselves, so can they do it?
0:05:32 > 0:05:36Can they not? But it's always worth asking the question.
0:05:36 > 0:05:38And it's the question we asked a local estate agent when she
0:05:38 > 0:05:43came to visit the property, guided at £35-£40,000.
0:05:43 > 0:05:47# There she goes
0:05:47 > 0:05:51# There she goes again... #
0:05:51 > 0:05:53You could put a bigger extension on the property,
0:05:53 > 0:05:56but what you pay out, you wouldn't get back when you sell.
0:05:56 > 0:05:59Oh, well, it was worth an ask. But fair point,
0:05:59 > 0:06:02maybe this needs a fair bit spent on it without an extension.
0:06:02 > 0:06:03What does the agent think?
0:06:03 > 0:06:06'To bring it up to modern-day standards, I think
0:06:06 > 0:06:09'you're talking about £20,000.'
0:06:09 > 0:06:13So get it near that guide price, it could be a £60,000 outlay.
0:06:14 > 0:06:18Is there profit potential in this popular part of Liverpool?
0:06:18 > 0:06:24On completion, I expect the property to achieve £110-£115,000.
0:06:25 > 0:06:27Sounds great. And rental potential?
0:06:27 > 0:06:30The rental value of this property, once it's completed,
0:06:30 > 0:06:33would be £475 per calendar month.
0:06:38 > 0:06:42This house does have its damp issues that would need to be sorted,
0:06:42 > 0:06:44but it has a lot of things going for it too.
0:06:44 > 0:06:48Great location, well built, close to all the amenities
0:06:48 > 0:06:49and the motorways.
0:06:49 > 0:06:52And if you get it for anywhere near the guide price, I think
0:06:52 > 0:06:54there's a tidy profit to be made.
0:06:54 > 0:06:57Let's see who fancied it when it went under the hammer.
0:06:57 > 0:07:01Lot 179. Start me...start me at 25,000.
0:07:01 > 0:07:0525 I have in the middle...of the doorway. 25. 26.
0:07:05 > 0:07:0826. 27. 28.
0:07:08 > 0:07:1029. 30. 31.
0:07:10 > 0:07:1331. Gentleman's bid, yes. 32.
0:07:13 > 0:07:1533.
0:07:15 > 0:07:1734. 35.
0:07:17 > 0:07:2036. He shakes his head.
0:07:20 > 0:07:23Your bid, on my right, with you at 35,000. 36 anywhere else?
0:07:23 > 0:07:26Gentleman here. 36. 37.
0:07:26 > 0:07:28I understand what you said, I'm only taking 1,000.
0:07:28 > 0:07:31A thousand. Thank you. 37.
0:07:31 > 0:07:3538. We just saw him taking the bid down, he is running out of steam.
0:07:35 > 0:07:39Thank you. Lady's bid, 38. That's more like it. 39, sir.
0:07:39 > 0:07:43Take a half this time. 38.5. 39, madam. And a half. No, OK.
0:07:43 > 0:07:46Lady's bid, sitting down at the back, at 39,000. First time.
0:07:46 > 0:07:50Second time. Third... And a half. 40.
0:07:50 > 0:07:5241.
0:07:52 > 0:07:54And a half. OK, shakes his head.
0:07:54 > 0:07:56It's now four times he's bid, I'm not sure I believe him yet,
0:07:56 > 0:07:59we'll soon find out, won't we? Lady's bid. At the back at 41.
0:07:59 > 0:08:02For the first time. Second time. Third and final time. 41,000,
0:08:02 > 0:08:04lady's bid. It's going to go.
0:08:04 > 0:08:0641,000. Thank you, madam.
0:08:07 > 0:08:12One of those cases where the bidder is not the buyer. That's Serene,
0:08:12 > 0:08:13the office manager for Adrian,
0:08:13 > 0:08:18who bought the property on behalf of Gary for £41,000.
0:08:18 > 0:08:22Confused yet? Let me help you place the face.
0:08:22 > 0:08:25# Got to know my name... #
0:08:25 > 0:08:30That's right, we last met Adrian in Warrington in 2014, where
0:08:30 > 0:08:32he was buying, renovating and renting
0:08:32 > 0:08:34properties on behalf of his clients.
0:08:36 > 0:08:41This time Adrian is acting on behalf of his investor, Gary.
0:08:41 > 0:08:43I met them to find out more.
0:08:44 > 0:08:47- Adrian, nice to meet you.- You, too.- How are you doing? Gary. Good to meet you.
0:08:47 > 0:08:51- Congratulations.- Thank you very much. - So, Gary, now you've seen it,
0:08:51 > 0:08:53- happy with it?- Oh, yes.
0:08:53 > 0:08:56It is the first time I've seen it, though, today.
0:08:56 > 0:08:59- This is the first time you've been in your property?- Yes.
0:08:59 > 0:09:03- Not frightened?- No, no. No, it's...
0:09:03 > 0:09:06it's what I expected. So, yes.
0:09:06 > 0:09:10- I mean, it's not very good now, but it will be.- Oh!
0:09:10 > 0:09:12He finds the houses...
0:09:12 > 0:09:15we agree on a price and then he tells me
0:09:15 > 0:09:19exactly how much it is going to cost to get it up to rentable standard,
0:09:19 > 0:09:21and then he manages it as well.
0:09:21 > 0:09:23So I don't really have to see them.
0:09:25 > 0:09:28Gary is happy to hand over his portfolio to someone else
0:09:28 > 0:09:33because he works offshore carrying out seismic seabed surveys.
0:09:33 > 0:09:36He's already had three properties developed by Adrian,
0:09:36 > 0:09:40- but why this particular house?- It's got everything going for it, really.
0:09:40 > 0:09:43To be honest, it is the area, it is five minutes drive from the
0:09:43 > 0:09:46M62, it is near Alder Hey Children's Hospital. Bus routes.
0:09:46 > 0:09:49You know, it is a good location.
0:09:49 > 0:09:51- All the amenities...- On hand, yes.
0:09:51 > 0:09:56- ..that you need.- Yes.- Tell us, Adrian, what needs to be done, first and foremost.
0:09:56 > 0:09:58Just give us a bit of a run down. Let's start downstairs.
0:09:58 > 0:10:02Basically, we will strip everything out, Dion. We will strip the kitchen out, all the flooring,
0:10:02 > 0:10:04all the wallpaper, everything.
0:10:04 > 0:10:06And we'll renew. There's a couple of new windows required.
0:10:06 > 0:10:09New front and rear doors, electrics to be upgraded.
0:10:09 > 0:10:12Tell us about outside, the bay window,
0:10:12 > 0:10:15there's a little bit of work that needs doing there.
0:10:15 > 0:10:18We'll renew the roof on the bay window completely.
0:10:18 > 0:10:21There's been some water ingress from that and also we'll have the
0:10:21 > 0:10:25masonry checked, just to make sure everything's secure and sealed.
0:10:25 > 0:10:30- Good. Upstairs.- Upstairs, same again. Completely strip it out.
0:10:30 > 0:10:34A couple of new windows needed upstairs, decor, flooring.
0:10:34 > 0:10:36Upgrade the boiler, if necessary.
0:10:36 > 0:10:39Are you going to change anything upstairs,
0:10:39 > 0:10:41regards a bathroom or toilet?
0:10:41 > 0:10:43No, the bathroom is downstairs in this property,
0:10:43 > 0:10:46but we don't find that has a negative impact.
0:10:46 > 0:10:48Tenants still go for the properties.
0:10:48 > 0:10:51there's no reason to add expense to move the bathroom upstairs
0:10:51 > 0:10:53and then of course, you'd lose a bedroom,
0:10:53 > 0:10:56which would bring the rent down, so we're better leaving
0:10:56 > 0:10:58it as it is, having three good size bedrooms upstairs.
0:10:58 > 0:11:00- I like the sound of it.- Yeah, me too.
0:11:00 > 0:11:05I might keep in touch for a little bit of a rent off you!
0:11:05 > 0:11:08Might have found myself a little Merseyside crash pad.
0:11:10 > 0:11:14Adrian has his usual team of contractors ready to get started,
0:11:14 > 0:11:16but how much will it all cost?
0:11:16 > 0:11:19The total refurbishment for the whole property,
0:11:19 > 0:11:22inside and outside, will be 17,700, for the whole property.
0:11:22 > 0:11:24And you get all that information...
0:11:24 > 0:11:28Yes, I get it e-mailed to me, that's part of the information I get,
0:11:28 > 0:11:31which makes me decide if I'm going to go for the house.
0:11:31 > 0:11:33I know exactly what it's going to do,
0:11:33 > 0:11:35exactly how much it's going to cost.
0:11:35 > 0:11:39It's going to cost that much money, the budget's 17 and a few bits.
0:11:39 > 0:11:43- How long is it going to take?- It's going to take four to six weeks.
0:11:43 > 0:11:46Six weeks at the maximum, but we may have it done in four weeks.
0:11:46 > 0:11:49Do you look for a particular yield between you?
0:11:49 > 0:11:53Yes, I would try and achieve in the region of 9 to 11% for the client.
0:11:53 > 0:11:58This one will be round the 10% on the gross yield, which is excellent.
0:11:58 > 0:12:00It is very good, isn't it?
0:12:00 > 0:12:03Better than money in the bank and you've got an income as well.
0:12:03 > 0:12:06- Good partnership. Adrian, take care, good luck.- Thank you very much.
0:12:06 > 0:12:09- Gary, good luck.- Thank you very much. - Nice to meet you both.
0:12:09 > 0:12:13- Let me know if you need any digs! - DION CHUCKLES
0:12:13 > 0:12:16Adrian's got all the credentials to turn this property round, get
0:12:16 > 0:12:20it in tiptop condition, ready for Gary to rent out.
0:12:20 > 0:12:23My only concern is that little bit of masonry around the bay window -
0:12:23 > 0:12:26I don't think it's going to be a problem.
0:12:26 > 0:12:29You can find out how they get on later in the programme.
0:12:32 > 0:12:37Aberdare is a bustling town and it's around 20 miles from Cardiff.
0:12:37 > 0:12:40But I'm heading up a mountain to a village called Cwmaman,
0:12:40 > 0:12:43that's Welsh for Amman Valley.
0:12:43 > 0:12:47Oh, and the village is the home of the Stereophonics.
0:12:47 > 0:12:50Well, not far from the centre of Aberdare,
0:12:50 > 0:12:52with good road links to Cardiff
0:12:52 > 0:12:56and access to the beautiful Brecon Beacons National Park,
0:12:56 > 0:12:59is the property I'm here to see and it is a three-bed mid-terrace,
0:12:59 > 0:13:02fairly traditional, guide price £35,000.
0:13:02 > 0:13:03Let's have a look.
0:13:05 > 0:13:07So, what do you get for your money?
0:13:07 > 0:13:10Um, so, entrance hall here, which is quite nice.
0:13:10 > 0:13:13Sometimes it does open straight into your lounge, that's not ideal,
0:13:13 > 0:13:15so this is a good thing to have.
0:13:15 > 0:13:18Ah, now here's an interesting thing.
0:13:18 > 0:13:20Looking up at the fuse box here,
0:13:20 > 0:13:24you might be of the mind that it's fairly new cos you've got
0:13:24 > 0:13:29these circuit breakers, but in fact, it's a really, really old...
0:13:29 > 0:13:32If I pull these out, lights go out, um...
0:13:32 > 0:13:37Old style um, sort of, cartridge type fuse board
0:13:37 > 0:13:40and they've stuck those ones in, um...
0:13:40 > 0:13:43So, that leads me to think the electrics will definitely
0:13:43 > 0:13:47need updating. Through into the lounge and it's really nice.
0:13:47 > 0:13:49It's a....
0:13:49 > 0:13:51Is this the right house?!
0:13:51 > 0:13:54I think it is! Um...
0:13:54 > 0:13:58Sorry, I'm slightly bemused by the fact it looks like somebody's
0:13:58 > 0:14:03living here. We've got sofas and chairs and tables.
0:14:03 > 0:14:04Wow. OK.
0:14:04 > 0:14:07Well, we'll carry on, in the hope that it is actually the right house.
0:14:07 > 0:14:09No, it is, really.
0:14:09 > 0:14:15Nice open plan living/dining area. I love that. Double aspect.
0:14:15 > 0:14:17Beautiful view out the back there.
0:14:17 > 0:14:23So, a really good start and there's a choice. We go down or we go up.
0:14:23 > 0:14:26Let's go down.
0:14:26 > 0:14:31# Something strange is going on
0:14:31 > 0:14:34# In my house, I do believe it is. #
0:14:34 > 0:14:39So, quite an interesting layout we've got here. Good size bathroom.
0:14:39 > 0:14:41Perfectly serviceable.
0:14:41 > 0:14:46Looks all right to me. And then the kitchen - what a nice space this is.
0:14:46 > 0:14:52Um... And again, everything just here. Salt, pepper... Wow.
0:14:52 > 0:14:57Nice space, again, I like it. Nice views out the window. Um... Pink?
0:14:57 > 0:15:01Well, it might not be everyone's choice, but it's kind of happy.
0:15:01 > 0:15:04Um... So...
0:15:04 > 0:15:09Um... Oh, hang on a minute. What's that?
0:15:09 > 0:15:12Just noticed that. Some nasty damp going on here.
0:15:12 > 0:15:16Oh, heck. Well, we are in a sort of lower room.
0:15:16 > 0:15:20So, I'm a bit concerned about the fact that's on an internal wall.
0:15:20 > 0:15:23My guess is it's rising damp from there,
0:15:23 > 0:15:26but apart from that, you could pretty much move in, couldn't you?
0:15:26 > 0:15:28It's lovely.
0:15:29 > 0:15:32# Move in, watch me move in... #
0:15:36 > 0:15:40Well, it does feel a bit like the Marie Celeste,
0:15:40 > 0:15:42but the contents could be part of the deal,
0:15:42 > 0:15:45saving a packet for any buy-to-let investor.
0:15:45 > 0:15:49That damp is a minor worry and other than that,
0:15:49 > 0:15:52the salt shaker needs to be refilled.
0:15:52 > 0:15:55Factor that into your budget... I'm joking.
0:15:55 > 0:15:58One thing for sure, if you plan to rent this out,
0:15:58 > 0:16:02something you would need is a safety check on all the appliances.
0:16:03 > 0:16:06So, let's see if the show home look continues upstairs.
0:16:06 > 0:16:10Well, judging by that bedroom, it definitely does.
0:16:10 > 0:16:14You've got all the linen on the bed, wardrobes and the little telly. Wow.
0:16:14 > 0:16:18Landing area here. I wonder what's in here. Cupboard maybe. Oh, no.
0:16:18 > 0:16:21a little loo. That's quite sweet.
0:16:21 > 0:16:24It's quite useful to have that upstairs, for sure.
0:16:24 > 0:16:27Tiny third bedroom, to be fair.
0:16:27 > 0:16:29But it's in reasonable condition.
0:16:29 > 0:16:33Through into your final bedroom and once again,
0:16:33 > 0:16:36almost straight out of a catalogue, isn't it?
0:16:36 > 0:16:38You've got a house, I guess,
0:16:38 > 0:16:41you could pretty much move into as it is, rent it out as it is, and
0:16:41 > 0:16:45that's brilliant cos you can start getting the money straightaway.
0:16:45 > 0:16:48And if you get it for a reasonable price at the auction, I think
0:16:48 > 0:16:52there's scope to make a bit of cash on this one.
0:16:52 > 0:16:55But as ever, do read the legal pack.
0:16:55 > 0:17:00A show home it may seem, but only by knowing all the background details
0:17:00 > 0:17:03can you know if your prospective property has any hidden nasties.
0:17:06 > 0:17:08Well, at the back of the property,
0:17:08 > 0:17:13you've got a really quite nice-sized garden and look at those views.
0:17:13 > 0:17:16So, what a lovely place to spend some time.
0:17:16 > 0:17:19There's a bit of a patio area here, too.
0:17:19 > 0:17:22And I guess one of the only things that I can see a bit negative,
0:17:22 > 0:17:23along with the damp inside,
0:17:23 > 0:17:26is it looks like there might have been a few problems with that
0:17:26 > 0:17:29guttering up there cos you can see the black
0:17:29 > 0:17:32staining down the pebbledash there, so definitely check out
0:17:32 > 0:17:35the rainwater goods, make sure they're OK.
0:17:35 > 0:17:36But apart from that, I think
0:17:36 > 0:17:40you could see yourself living there, couldn't you?
0:17:40 > 0:17:44So, not quite perfect, but it does have its advantages.
0:17:46 > 0:17:50We asked a local estate agent along to tell us about the local market.
0:17:50 > 0:17:53Who does he think this mid-terrace would appeal to?
0:17:53 > 0:17:55Investors will buy in the location
0:17:55 > 0:17:58because property prices are fairly reasonable, but you'll also
0:17:58 > 0:18:03attract the first-time buyers and the families themselves.
0:18:03 > 0:18:05The agent thinks the resale market is very slow,
0:18:05 > 0:18:08so what about rentals then?
0:18:08 > 0:18:12The rental market seems to be at probably its highest peak
0:18:12 > 0:18:15since it has been for many years.
0:18:15 > 0:18:19So, with the stagnant sales market and this place almost ready
0:18:19 > 0:18:23to rent right away, I think this looks like a rental, don't you?
0:18:23 > 0:18:24With minimal work done,
0:18:24 > 0:18:29the agent thinks it could achieve £55,000 on the sale market.
0:18:29 > 0:18:33Not bad, against the £35,000 guide price,
0:18:33 > 0:18:35but how about those rental figures?
0:18:37 > 0:18:39Without doing any work to the property,
0:18:39 > 0:18:42you'd achieve figures in the region of £400 per calendar month.
0:18:42 > 0:18:46You could be looking in the region of probably 430 per calendar
0:18:46 > 0:18:50month if any upgrading was done to the property.
0:18:50 > 0:18:54Well, it certainly is an interesting one this, isn't it?
0:18:54 > 0:18:57Yes, a few bits of superficial damp to sort out,
0:18:57 > 0:19:01but pretty much ready to either move in to or rent out straightaway.
0:19:01 > 0:19:03That's good news on the one hand.
0:19:03 > 0:19:05On the other hand, in terms of adding value,
0:19:05 > 0:19:09sometimes it's good to find a place that you can replace things like
0:19:09 > 0:19:12kitchens and bathrooms, so you pays your money, you takes your choice.
0:19:12 > 0:19:15Let's see who did just that when it went under the hammer.
0:19:17 > 0:19:20Mid-terraced house. Accommodation over three floors.
0:19:20 > 0:19:23Guided at £35,000. Start me somewhere near... I don't know.
0:19:23 > 0:19:25Start me at 30, somebody, please?
0:19:25 > 0:19:27Wave a hand at me at 30. Make it 25 then, if you like.
0:19:27 > 0:19:30Thank you, 25 there. 25. 6 now, can I see it? 25, I've got.
0:19:30 > 0:19:3326, I'm looking for. 26. 27. 27?
0:19:33 > 0:19:3527. 28. 28. 29.
0:19:35 > 0:19:38No surprises, there were a number of interested parties in this
0:19:38 > 0:19:41house, with bids coming from around the room.
0:19:41 > 0:19:44We rejoin the action with the bidding at £43,500.
0:19:47 > 0:19:50At 43 and a half then, seated. Against you at the back.
0:19:50 > 0:19:53At 43 and a half then for the first time.
0:19:53 > 0:19:55Second time. Third and last time.
0:19:55 > 0:19:58At 43... 44. 44 and a half, sir?
0:19:58 > 0:20:0044 and a half. 45 now.
0:20:00 > 0:20:03At 44 and a half then, seated, for the first time.
0:20:03 > 0:20:07Second time. Third and last time. At £44,500.
0:20:07 > 0:20:11Yours, sir. Well done. Your number is number 125.
0:20:11 > 0:20:15For 44,500, Mervyn snapped up this wannabe show home.
0:20:17 > 0:20:20Hailing from the Valleys, he knows the local market well
0:20:20 > 0:20:25and he came along with his wife Pam to let me know what they plan to do.
0:20:25 > 0:20:26If anything.
0:20:26 > 0:20:30- Pam, Mervyn, great to meet you both. - Good morning.- Congratulations.
0:20:30 > 0:20:33- Thank you.- Well, maybe. - What do you mean "Maybe"?
0:20:33 > 0:20:38- What doubt do you have about this place?- It was too good to be true.
0:20:38 > 0:20:41- What did you think when you first came in?- Um...
0:20:41 > 0:20:45I didn't realise at the time that the outgoing owner was going
0:20:45 > 0:20:50to leave everything here, but with everything in as well,
0:20:50 > 0:20:52it's too good to be true, really.
0:20:52 > 0:20:54Well, you own it. You've completed now.
0:20:54 > 0:20:57- You own everything in it as well. - All done and dusted.
0:20:57 > 0:20:59Wow. You've got some salt cellars and some deodorants...
0:20:59 > 0:21:01Even a mountain bike.
0:21:01 > 0:21:05Even a mountain bike, which is very convenient for around here.
0:21:05 > 0:21:09The previous owner has used this as a holiday home and was happy
0:21:09 > 0:21:14to sell everything to Mervyn for £600, so happy days all round.
0:21:15 > 0:21:17Tell me why you wanted to buy it.
0:21:17 > 0:21:19Well, it was the right price
0:21:19 > 0:21:22and we were just looking for another one to...
0:21:22 > 0:21:24- Add to the collection, really. - Add to what we've got.
0:21:24 > 0:21:27You've done this before then, have you?
0:21:27 > 0:21:30- Yeah, we've got nine or ten others. - Oh, well done.
0:21:30 > 0:21:32- In this kind of area, or...? - Yes, all in the valley.
0:21:32 > 0:21:34- Yes, all in the valley. - All in the valley.
0:21:34 > 0:21:37- The first one in this actual village.- In this village, yeah.
0:21:37 > 0:21:41- But they're all rented out, are they?- All rented out, yeah.
0:21:41 > 0:21:45- A bit of a pension pot and a bit of an income?- Yeah. And something to
0:21:45 > 0:21:48- do.- Do you have other jobs? Or is this what you do now?
0:21:48 > 0:21:50Well, I was a bookmaker.
0:21:50 > 0:21:55Small village bookmaker and had half a dozen properties,
0:21:55 > 0:22:00but small bookmakers, unfortunately, like small shops and small anything
0:22:00 > 0:22:03- small is no good now and we just had to close them down and...
0:22:03 > 0:22:05That's a shame.
0:22:05 > 0:22:09There was nothing to do then. So, you can't sit in the house and...
0:22:09 > 0:22:10Oh, no.
0:22:10 > 0:22:14- That's a nightmare. - He has to have a project, don't you?
0:22:14 > 0:22:18So we decided we'd buy a few properties and I'd look after them.
0:22:18 > 0:22:22- And, Pam, what was your background? - I used to work as an estate agent.
0:22:22 > 0:22:25- Oh, did you? That's useful. - Many years ago now.
0:22:25 > 0:22:30But, yes, basically, I've done very little since I met Mervyn.
0:22:30 > 0:22:34- Right, are you a kept woman? - Yes, I am and loving it.
0:22:34 > 0:22:39And I always say - well, he earns the income, but I can spend it.
0:22:39 > 0:22:42- Well, that works perfectly then. - Perfect arrangement, isn't it?
0:22:42 > 0:22:45And if you think all that sounds too good to be true,
0:22:45 > 0:22:50it turns out Pam has a very unique property purchase incentive scheme.
0:22:50 > 0:22:55Mervyn was nudged into exceeding his top budget by 500 quid.
0:22:55 > 0:22:58Nudged or elbowed, you decide!
0:22:58 > 0:23:01She was going, holiday, holiday!
0:23:01 > 0:23:03- Holiday, holiday?- Yeah.- Why?
0:23:03 > 0:23:06Cos if I get a property, she gets a holiday.
0:23:06 > 0:23:08- Oh, is that the deal, is it? - Yeah, yeah.
0:23:08 > 0:23:09Yeah.
0:23:09 > 0:23:13- That's what they pay for.- That's what they pay for, that's right.
0:23:13 > 0:23:17Right, so your income from your houses helps you to go on holiday.
0:23:17 > 0:23:19- Yes.- Oh, great.
0:23:19 > 0:23:21Well, having sold off the bookmaking business,
0:23:21 > 0:23:23the couple now rely on their property portfolio
0:23:23 > 0:23:27and a small wholesale electrical business for their income.
0:23:27 > 0:23:30I've got fellas who run that. I don't do anything towards that.
0:23:30 > 0:23:32But it comes in handy, when you want bits and pieces.
0:23:32 > 0:23:34One of the things I noticed
0:23:34 > 0:23:37when I came here was the electrical fuse board needs replacing.
0:23:37 > 0:23:38That's right, yeah.
0:23:38 > 0:23:42- So we'll be able to do that. - Get that sorted, no problem.- Yeah.
0:23:42 > 0:23:44So, what are you planning to do to the place?
0:23:44 > 0:23:47We've got a little bit of paintwork round the back,
0:23:47 > 0:23:49the guttering, sort the garden out, and we're ready to go.
0:23:49 > 0:23:52- That's it.- So, what about the damp in the kitchen?
0:23:52 > 0:23:54What do you think is causing that?
0:23:54 > 0:23:56Well, I don't know whether it's condensation down there...
0:23:56 > 0:23:59I don't think there's any underlying problem,
0:23:59 > 0:24:02but we'll have the painters in and they'll take the wall
0:24:02 > 0:24:06back to the plaster and maybe we'll have to replaster them and stabilise
0:24:06 > 0:24:11the wall or something, but I don't think it's a big problem, anyway.
0:24:11 > 0:24:15- And the kitchen's staying pink? - Kitchen's staying pink.
0:24:15 > 0:24:19- Show your feminine side, is it?- Yes. - Show the feminine side off.
0:24:19 > 0:24:24That's it. We're not looking at 300 or 400 quid and we're away to go.
0:24:24 > 0:24:26And how long do you think it'll take?
0:24:26 > 0:24:30Literally, I'm going to advertise it for tenants straightaway and get
0:24:30 > 0:24:33on with the work and hopefully, have someone in in a week or a fortnight.
0:24:33 > 0:24:37All the furniture and everything, it's probably not worth a lot,
0:24:37 > 0:24:40- but it's hassle to get it, isn't it?- It's ideal.
0:24:40 > 0:24:43If you could find a couple, a boy or a girl, leaving home,
0:24:43 > 0:24:45- starting together...- Oh, yeah.
0:24:45 > 0:24:48They would be ideal to come in here because they don't...
0:24:48 > 0:24:51They can manage with all the furniture for a while.
0:24:51 > 0:24:53- They can manage with whatever's here.- Yeah, superb start.
0:24:53 > 0:24:58- So, what's next on the agenda?- Oh, she'll be booking a holiday next.
0:24:58 > 0:25:02- Yes.- That's the next thing on the agenda.- Where are you going to go?
0:25:02 > 0:25:05- We'll see, I don't know. - They go away in threes.
0:25:05 > 0:25:07It's my wife, my daughter and my credit card.
0:25:07 > 0:25:09And I stay home.
0:25:09 > 0:25:11And do the work.
0:25:11 > 0:25:14- You don't go on the holidays?- No. - What?!- No.
0:25:14 > 0:25:17- So, you buy the properties, make the money out of them...- Yeah.
0:25:17 > 0:25:18And I spend it.
0:25:18 > 0:25:21- And the family goes and enjoys the holidays.- Yeah.
0:25:21 > 0:25:23- You seem very happy about this. - Yeah, that's fine.
0:25:23 > 0:25:26- I'm happy with that. - Wonderful arrangement.- Yeah.
0:25:26 > 0:25:30- That's a good arrangement. That's OK.- Congratulations.- Thank you.
0:25:30 > 0:25:33Really good to meet you both. I don't know how long we need to
0:25:33 > 0:25:36- leave it before we come back. Probably a week?- We'll let you know!
0:25:36 > 0:25:39Yeah. We'll let you know. It won't be long.
0:25:42 > 0:25:46Well, Pam and Mervyn really recognise that they have been
0:25:46 > 0:25:49lucky here, but these kind of bargains do come up at the
0:25:49 > 0:25:54auction and to have it completely kitted out like this, what a bonus.
0:25:54 > 0:25:58Just a few days' work and it'll be up for the rental market.
0:25:59 > 0:26:03I mean, can I build up any interest as to what happens
0:26:03 > 0:26:04later in the show?
0:26:04 > 0:26:07Oh, just come back later and see anyway!
0:26:09 > 0:26:11Coming up in Glasgow, small shop,
0:26:11 > 0:26:13big budget, for a beauty parlour.
0:26:13 > 0:26:17- So, come on, how much is one of the machines?- £25,000 to £30,000.
0:26:17 > 0:26:21- And you're looking at buying...? - Four to five.
0:26:21 > 0:26:23And Cwmaman, big house, tiny budget,
0:26:23 > 0:26:27but Mervyn really isn't saving any money, thanks to wife Pam.
0:26:27 > 0:26:29I do the work, she spends the money.
0:26:34 > 0:26:36Earlier on in the show, I was in lovely Liverpool,
0:26:36 > 0:26:39where I met businessman Adrian and his client Gary.
0:26:41 > 0:26:44Adrian is a professional developer, buying,
0:26:44 > 0:26:48renting and renovating properties for his clients.
0:26:48 > 0:26:51He bought this three-bed mid-terrace for Gary for £41,000.
0:26:55 > 0:27:00But Gary's fourth investment property was in need of modernisation, so
0:27:00 > 0:27:04eight weeks on, have Adrian and his team managed a successful renovation?
0:27:24 > 0:27:26An impressive finish here.
0:27:26 > 0:27:29Adrian and his team have done a great job for Gary.
0:27:29 > 0:27:32Adrian can take us through the changes.
0:27:32 > 0:27:34Let's start with the exterior.
0:27:34 > 0:27:38The roof and guttering, we've just replaced parts of it where
0:27:38 > 0:27:41needed, so there's some new downspouts on the front.
0:27:41 > 0:27:44We've replaced the bay window roof, we've painted the board,
0:27:44 > 0:27:46renewed some guttering, downspouts.
0:27:49 > 0:27:51The main work - a new front door,
0:27:51 > 0:27:54and then we've done the block paving, new fencing.
0:27:54 > 0:27:58So it's really smart and it's got great appeal now.
0:27:58 > 0:28:00It's not only the front garden
0:28:00 > 0:28:02that's had the easy-to-care-for approach.
0:28:02 > 0:28:04The back garden has also been sorted out, so any tenant
0:28:04 > 0:28:08moving in won't be needing to get their gardening gloves on.
0:28:09 > 0:28:13So, outside there, we've cleared all the undergrowth out,
0:28:13 > 0:28:15all the soil.
0:28:15 > 0:28:18There was actually tree stumps which we had to have ground out,
0:28:18 > 0:28:22a tremendous amount of undergrowth and rubbish.
0:28:22 > 0:28:26Actually about nine or ten skips just from the back alone.
0:28:26 > 0:28:30And then the team levelled the ground, they put the step in,
0:28:30 > 0:28:33new gate, new fence in, a lovely block paving for the tenants,
0:28:33 > 0:28:35which is really low-maintenance.
0:28:35 > 0:28:38It's a nice place to sit out in the sunshine, really.
0:28:39 > 0:28:43OK, that's the outside, how about the inside?
0:28:43 > 0:28:45I'm loving the look of the kitchen in particular.
0:28:50 > 0:28:53So, in the kitchen, we've totally taken out the old units,
0:28:53 > 0:28:57we've taken off the old wall tiles, new white-gloss units,
0:28:57 > 0:29:00nice black tiling and the matching oven, hob and extractor.
0:29:00 > 0:29:04So it's a really modern, practical kitchen for the new tenants.
0:29:05 > 0:29:08So what about the rest of downstairs?
0:29:08 > 0:29:11On the downstairs, we've decorated throughout.
0:29:11 > 0:29:14We've put in a new, nice electric fireplace, totally new kitchen
0:29:14 > 0:29:17and bathroom, lovely wall tiling,
0:29:17 > 0:29:20it just gives it a nice uplift to the house,
0:29:20 > 0:29:21it's really modern.
0:29:22 > 0:29:26And what about that bay window?
0:29:26 > 0:29:29The damp wasn't really an issue, it wasn't actually rising damp or anything.
0:29:29 > 0:29:32There was some round the bay window, which was coming from the
0:29:32 > 0:29:34bay window roof, which needed replacing,
0:29:34 > 0:29:37so that's had a complete new roof and the top just dried out
0:29:37 > 0:29:41and it's been painted and it's eradicated the problem.
0:29:42 > 0:29:45Upstairs, the decor being spruced up has really lifted
0:29:45 > 0:29:48the appeal of the bedrooms.
0:29:48 > 0:29:51Adrian also saved a little in the budget.
0:29:51 > 0:29:54It turned out the laminate flooring was in better condition than expected,
0:29:54 > 0:29:58which was just as well, as there was an unexpected expense.
0:29:59 > 0:30:01We have put a new boiler in.
0:30:01 > 0:30:04When we purchased the property, even though it did
0:30:04 > 0:30:06have a modern boiler, we don't know if it's serviceable
0:30:06 > 0:30:08until our gas engineer gets the gas on and tests it,
0:30:08 > 0:30:11and it was found that the pump and the circuit board was gone,
0:30:11 > 0:30:15so it's much more economical to pay a bit more and change the boiler and have a brand-new one.
0:30:15 > 0:30:18When we replaced the boiler, it was a good opportunity to move it,
0:30:18 > 0:30:20because it was very close to the rear window,
0:30:20 > 0:30:22and it was placed in the middle of the bedroom.
0:30:22 > 0:30:25So, one of my joiners built a nice housing cabinet for it,
0:30:25 > 0:30:28so it's now behind closed doors and it's in a much better position.
0:30:28 > 0:30:31It's always a good idea to have a carbon monoxide alarm,
0:30:31 > 0:30:33wherever you put your boiler.
0:30:33 > 0:30:38They finished slightly over their four-to-six-week timescale at eight weeks,
0:30:38 > 0:30:41but I'm a bit worried Adrian has gone over their budget.
0:30:41 > 0:30:45The original budget we had was 17,700, and it came £300 over.
0:30:45 > 0:30:48We spent just on the 18,000 for the whole project.
0:30:48 > 0:30:51- That's pretty impressive. - Thank you.
0:30:51 > 0:30:53It is though, isn't it?
0:30:53 > 0:30:57Judging by that praise, sounds like Gary's a happy man.
0:30:58 > 0:31:03I've only seen the property twice, once was before, and this time.
0:31:03 > 0:31:06So, very pleased. I could live here.
0:31:06 > 0:31:11To any tenant, I can't believe they'd say, "Oh, no," you know?
0:31:11 > 0:31:14I don't think there's anything not to like.
0:31:14 > 0:31:17But will two local estate agents like it?
0:31:17 > 0:31:20Let's start with the agent who saw it the first time.
0:31:22 > 0:31:25I think the property has been transformed.
0:31:25 > 0:31:28It's amazing, really, what he's done to it.
0:31:28 > 0:31:32Their standard is a very high standard. I like all of it.
0:31:32 > 0:31:34I could live here myself!
0:31:34 > 0:31:36It is a really, really nice place.
0:31:36 > 0:31:38They've made it a really good home.
0:31:38 > 0:31:39I think the property's excellent,
0:31:39 > 0:31:41I think the owner's done a brilliant job,
0:31:41 > 0:31:45it's in a good residential area, so it's worth spending the money on.
0:31:45 > 0:31:48I love the kitchen, I think he's done a spectacular job there,
0:31:48 > 0:31:51it's very practical, it looks really modern and sharp as well.
0:31:51 > 0:31:55He's bought it right, and that is the benefit of buying under the hammer.
0:31:55 > 0:31:58But will buying under the hammer translate to profit?
0:31:58 > 0:32:01The total spend so far, buying and renovating the house,
0:32:01 > 0:32:03has been £59,000.
0:32:03 > 0:32:05So what could it attract on the sales market?
0:32:07 > 0:32:10So, sales-wise, I think you could comfortably achieve £85,000,
0:32:10 > 0:32:12on the open market,
0:32:12 > 0:32:15given the fact that he's done such a lovely job.
0:32:15 > 0:32:21The sale value, I would put it on the market for in between £95,000 and £110,000.
0:32:21 > 0:32:23I mean, the intention is not to sell, but it's good to hear that,
0:32:23 > 0:32:25because of the nice finish,
0:32:25 > 0:32:27that it's coming up as a higher valuation.
0:32:27 > 0:32:31A very high valuation like that £110,000 could mean
0:32:31 > 0:32:33a 51 grand pre-tax profit,
0:32:33 > 0:32:37but it's letting valuations they'll be interested in.
0:32:37 > 0:32:40What does the agent think?
0:32:40 > 0:32:44For rental I would put it on the market for £550 per calendar month.
0:32:44 > 0:32:49I think it would be very easy to achieve £520 per calendar month.
0:32:49 > 0:32:51Yes, I would agree with those valuations.
0:32:51 > 0:32:54We have actually already sourced a tenant, who's moving in next week
0:32:54 > 0:32:58at a rent of 525, so I would totally agree with those.
0:32:58 > 0:33:02I mean, at those figures, it is bringing in slightly under 11% gross rental yield,
0:33:02 > 0:33:04which is an excellent result, so, very happy.
0:33:05 > 0:33:09Proof that landlords prepared to go the extra mile to create lovely homes
0:33:09 > 0:33:13can reap financial rewards. But does it get the thumbs up from Gary?
0:33:30 > 0:33:34Today I'm in the East End of Glasgow, in the area that's called
0:33:34 > 0:33:38Dennistoun, just north of the River Clyde in the East End of the city.
0:33:38 > 0:33:41The area is mainly made up of tenements
0:33:41 > 0:33:44and Victorian villas and terraces.
0:33:44 > 0:33:47After the Second World War, most of Dennistoun's tenements were
0:33:47 > 0:33:50extended and refurbished, rather than knocked down
0:33:50 > 0:33:55and replaced by modernist high-rises like many of the neighbouring areas.
0:33:58 > 0:34:00I do love these tenement buildings.
0:34:00 > 0:34:03The red and blonde sandstone construction means
0:34:03 > 0:34:05they are very impressive and substantial
0:34:05 > 0:34:10and I also love the high ceilings and very generous proportions.
0:34:11 > 0:34:14And right in the heart of Dennistoun's busy shopping street
0:34:14 > 0:34:16is the property I'm here to see today.
0:34:18 > 0:34:21It's this commercial property, formerly a greengrocer's
0:34:21 > 0:34:24and it's right here on the ground floor of this four-storey
0:34:24 > 0:34:27typical tenement block.
0:34:27 > 0:34:30Now, it's a shop with a little room out the back.
0:34:30 > 0:34:34It was up for auction for between £17,000 and £20,000.
0:34:34 > 0:34:36On a busy street like this,
0:34:36 > 0:34:39well, I think that is going to get some attention.
0:34:39 > 0:34:40I'm going in.
0:34:40 > 0:34:46A smaller space inside than expected. And in a bit of a state.
0:34:46 > 0:34:49But what we really need to think about here is what this
0:34:49 > 0:34:51commercial space could be used for.
0:34:51 > 0:34:54Now, the exciting thing is there's lots of people
0:34:54 > 0:34:56milling around outside, traffic,
0:34:56 > 0:34:59so lots of footfall, so that's a great business opportunity.
0:34:59 > 0:35:02But this shop, it needs a total refit. Look.
0:35:02 > 0:35:05You've got a basement down there, which is great,
0:35:05 > 0:35:09but there's no access outside so parking and deliveries, well,
0:35:09 > 0:35:13there may be a bit of a problem there so that's not so good.
0:35:13 > 0:35:15But here's something interesting.
0:35:15 > 0:35:19You also need to pay factors' fees for the management of the building.
0:35:19 > 0:35:21And, of course, the buildings insurance.
0:35:21 > 0:35:26Now, those factors' fees could be between £500 and £1,000 per year,
0:35:26 > 0:35:30so that is something you need to take into consideration.
0:35:30 > 0:35:34The factor is the management company that sorts out repairs
0:35:34 > 0:35:37and maintenance and the bills that are shared between the owners,
0:35:37 > 0:35:39so definitely worth checking
0:35:39 > 0:35:43if there are any big communal bills in the offing. Now to the basement.
0:35:43 > 0:35:46Once you've got rid of everything, well,
0:35:46 > 0:35:48it's big, but headroom is a real problem.
0:35:48 > 0:35:50You couldn't use that for anything other than
0:35:50 > 0:35:52storage at the moment.
0:35:53 > 0:35:56# When I'm down here I could be anywhere
0:35:56 > 0:36:00# It could be Vegas or I could be down in the basement
0:36:02 > 0:36:04# In the basement... #
0:36:04 > 0:36:06Now, looking around this little shop,
0:36:06 > 0:36:08I've noticed there is no toilet.
0:36:08 > 0:36:11Back in the day when these tenements were built, all the flats
0:36:11 > 0:36:16within the tenement buildings shared one toilet out in the close.
0:36:16 > 0:36:20Now, that is the communal lobby and stairway, by the way.
0:36:20 > 0:36:22Can you imagine getting up in the middle of the night,
0:36:22 > 0:36:25stepping over your nearest and dearest
0:36:25 > 0:36:29and walking down those cement stairs in the dark just to get to the loo?
0:36:29 > 0:36:30Not me.
0:36:30 > 0:36:33Of course, you could put in a toilet facility at the back
0:36:33 > 0:36:36of the shop where, at the moment, there is a sink and storage.
0:36:36 > 0:36:38Food for thought, eh?
0:36:38 > 0:36:41I asked a local property expert what he thought about this
0:36:41 > 0:36:44interesting retail space and what its future might be.
0:36:44 > 0:36:48The area has undergone a bit of a renaissance in recent times.
0:36:49 > 0:36:52The local streets have become popular
0:36:52 > 0:36:54from a retailing perspective.
0:36:54 > 0:36:56So there's good demand within the area.
0:36:56 > 0:37:02Businesses such as small cafes, groceries, newsagents which,
0:37:02 > 0:37:04as I say, they're attracted to the area just
0:37:04 > 0:37:06because of the residential market.
0:37:06 > 0:37:08So a good area and with potential customers aplenty,
0:37:08 > 0:37:10what could be done
0:37:10 > 0:37:13to make this place a little more resourceful in terms of space?
0:37:15 > 0:37:18Yes, the lower floor has got a very limited floor-to-ceiling height
0:37:18 > 0:37:20so there's various ways you can look at it.
0:37:20 > 0:37:24You could potentially raise the existing floor or you could drop
0:37:24 > 0:37:29the existing floor and put two floors within the main ground floor area.
0:37:30 > 0:37:34I suppose those really high ceilings would allow you to create two floors
0:37:34 > 0:37:37that would still have lots of space.
0:37:37 > 0:37:39We're used to juggling rooms around, but floors?
0:37:39 > 0:37:43That's a very different kind of reconfiguration and expensive too.
0:37:43 > 0:37:45But if done as a straight renovation,
0:37:45 > 0:37:48what could this property sell for?
0:37:48 > 0:37:51I would expect, if placed on the open market,
0:37:51 > 0:37:57that a figure of around £40,000 could be achieved after refurbishment.
0:37:57 > 0:37:59The agent said valuing the property
0:37:59 > 0:38:03as two usable floors would depend on the final square footage
0:38:03 > 0:38:07so any refurbishment budget would need to be kept under control.
0:38:07 > 0:38:10What about rental potential?
0:38:10 > 0:38:13I would expect this property to achieve
0:38:13 > 0:38:17a rent in the region of £400 per calendar month.
0:38:17 > 0:38:18In this up and coming area,
0:38:18 > 0:38:22this is a definite business opportunity for someone, but it's
0:38:22 > 0:38:27about finding the right business and the right owner to make it succeed.
0:38:27 > 0:38:31Let's see who saw beyond the shabby shutters and broken tiles
0:38:31 > 0:38:33when it went to auction.
0:38:33 > 0:38:36Now, lot ten. Takes us all the way down to bonnie Glasgow.
0:38:36 > 0:38:39Somebody start me off here. Where shall we start for this?
0:38:39 > 0:38:42Let's try 35,000, I'm looking for. 30, then.
0:38:42 > 0:38:4425. 15,000, then.
0:38:45 > 0:38:4915 I have. 16, I've got. 17 I also have at the back, I hope.
0:38:49 > 0:38:5217? 18. 19.
0:38:52 > 0:38:5320.
0:38:53 > 0:38:56With both rival bidders hidden from our view,
0:38:56 > 0:38:58we return to the action at £48,000.
0:38:59 > 0:39:01Looking for 48.
0:39:01 > 0:39:0448. 48, I have.
0:39:04 > 0:39:0748 going once, twice...
0:39:07 > 0:39:11third and final time. Sorry.
0:39:11 > 0:39:12Before I got the hammer down.
0:39:12 > 0:39:14That was very late, but you just made it in.
0:39:14 > 0:39:1649. 50.
0:39:16 > 0:39:1950 I have. 51? No.
0:39:19 > 0:39:2450,000, going once, twice, third and final time. Sold.
0:39:24 > 0:39:27Gentleman stood at the back. Thank you very much.
0:39:27 > 0:39:29Wow. For 30 grand over the guide price,
0:39:29 > 0:39:31this shop went to businessman Mindy.
0:39:32 > 0:39:35He already runs a store across the road from this lot
0:39:35 > 0:39:39so I was intrigued as to why he wanted this one.
0:39:39 > 0:39:42Mindy, congratulations on your purchase.
0:39:42 > 0:39:45Now, I know you paid £50,000 on auction day.
0:39:45 > 0:39:47What was the guide price, remind me.
0:39:47 > 0:39:51- The guide was 17 to 22. - So did you get caught up?
0:39:51 > 0:39:55- Can you admit to me... - I did.- You got so excited?- I did.
0:39:55 > 0:39:58I did get caught up because the bidding...
0:39:58 > 0:40:01when I took it to the third bid on the 48,000.
0:40:01 > 0:40:06- I just had to get a bit of a sense of reality.- A Mindy check.
0:40:06 > 0:40:10- Hold on a moment!- Just what was I doing here? Where was I?
0:40:10 > 0:40:13But I thought I might as well finish on a round figure.
0:40:13 > 0:40:15Well, yes, a round figure with a three in front
0:40:15 > 0:40:17would have been so much wiser.
0:40:17 > 0:40:21He isn't the first and won't be the last to get carried away at auction.
0:40:21 > 0:40:24Remember, set a budget and stick to it.
0:40:24 > 0:40:25Moving on...
0:40:25 > 0:40:27Well, you have bought it.
0:40:27 > 0:40:29What are you going to do with it here?
0:40:29 > 0:40:33- What we are going to do is at first we can utilise the basement.- Mm-hm.
0:40:33 > 0:40:36Because of the height, but what we're going to do is the floor
0:40:36 > 0:40:38that we are standing on right now,
0:40:38 > 0:40:40- we're going to raise this by a metre.- OK.
0:40:40 > 0:40:42So raise this floor so it...
0:40:42 > 0:40:46- So it gives us more downstairs and then gives us usage downstairs.- OK.
0:40:46 > 0:40:49We're going to be putting in a fully equipped sun lounge downstairs
0:40:49 > 0:40:52with four to five sunbeds.
0:40:52 > 0:40:55Up here, as we're moving the floor, we're going to build
0:40:55 > 0:40:59a mezzanine floor here with three chairs and a cross-range
0:40:59 > 0:41:02between rent the chairs out for eyebrows, an eye studio,
0:41:02 > 0:41:05nail studio and maybe a hairdresser chair and just rent the chairs out.
0:41:05 > 0:41:09- So a beauty lounge is what you're looking for?- That's it.
0:41:09 > 0:41:12- Beauty, sunbeds. - Leisure industry.- Fantastic.
0:41:12 > 0:41:15- Is that something you've always wanted to break into?- No.
0:41:15 > 0:41:18Nothing that I knew about it but the more that I thought about it,
0:41:18 > 0:41:21the more that we've got the use of this facility, this shop now,
0:41:21 > 0:41:23the more eager I am to give it a blast.
0:41:23 > 0:41:26And you think people that live and work around here, the footfall,
0:41:26 > 0:41:30the locals that walk past the door, they're looking for sunbeds
0:41:30 > 0:41:33- and eyebrows and hairdressing? - It is my gut instinct, Lucy.
0:41:33 > 0:41:35It's a no-brainer.
0:41:35 > 0:41:38I really feel as if the feedback we've had, people...
0:41:38 > 0:41:42is like, as if no-one's ever thought of it. I want to do it high-class.
0:41:42 > 0:41:45I want to do it to a really good standard,
0:41:45 > 0:41:48but rather than having the sunbeds nowadays with the flashy colours,
0:41:48 > 0:41:51I want to have more of a laboratory look to it,
0:41:51 > 0:41:53- a dental hygienist place.- OK.
0:41:53 > 0:41:56- And just keep basic core colours in here.- OK.
0:41:56 > 0:41:57That's a really good idea.
0:41:57 > 0:41:59I mean, the only thing that worries me
0:41:59 > 0:42:02is you have already spent quite a lot of money by just purchasing it,
0:42:02 > 0:42:04let alone starting to raise up floors,
0:42:04 > 0:42:08dig down deep, buy all the equipment, buy the sunbeds, employ the people.
0:42:08 > 0:42:11I mean, how much more money do you need to spend on this
0:42:11 > 0:42:13business venture?
0:42:13 > 0:42:16These sunbed machines, once we've enquired about them,
0:42:16 > 0:42:19they're very expensive bits of kit.
0:42:19 > 0:42:21So come on, how much is one of the machines?
0:42:21 > 0:42:24One of the machines is about £25-£30,000.
0:42:24 > 0:42:27- And you're looking at buying... - Four to five.
0:42:27 > 0:42:28Four to five of those machines?
0:42:28 > 0:42:32How much money have you got to spend on this project?
0:42:32 > 0:42:35Another 200,000. We are looking to go a quarter mil.
0:42:35 > 0:42:36- Really?!- Yes.
0:42:37 > 0:42:39Mindy sounds very determined,
0:42:39 > 0:42:42but before he can embark on any of these expensive plans,
0:42:42 > 0:42:44he's got to get change of use
0:42:44 > 0:42:47and these things are often not as straightforward as you hope.
0:42:47 > 0:42:51So I hope he's factored in some time for that planning process.
0:42:51 > 0:42:54Subject to planning and public entertainment licence,
0:42:54 > 0:42:57which are in the control of the council,
0:42:57 > 0:43:01we're hoping that once we get the go-ahead, the green light,
0:43:01 > 0:43:05- I'm going to turn this over in about three months from start to finish.- Wow.
0:43:05 > 0:43:07I mean, that is quite a quick sort of turnover.
0:43:07 > 0:43:12We've got everybody in place, from joiners, builders, electricians.
0:43:12 > 0:43:14Everybody's just raring to go,
0:43:14 > 0:43:16but we need the green light from the council.
0:43:16 > 0:43:18Can you see any problems there?
0:43:18 > 0:43:20I can't see any problems, but I know there will be problems.
0:43:20 > 0:43:22It's just one of those ones.
0:43:22 > 0:43:25There will be stuff to encounter because it's a major upheaval.
0:43:25 > 0:43:29We're taking...the floor you're standing on. It's not going to be there any more.
0:43:29 > 0:43:33You're going to be a metre higher and to these people, it's normal,
0:43:33 > 0:43:36it's their job, but to me, trying to envisage that,
0:43:36 > 0:43:38but I have to just go with it.
0:43:38 > 0:43:40Well, I'm really excited for you, Mindy.
0:43:40 > 0:43:42I can't wait to see your business up and running.
0:43:42 > 0:43:45It's going to be an exciting project. Thank you so much.
0:43:45 > 0:43:48- Thank you, Lucy.- Lovely to meet you. - It's been a pleasure.
0:43:48 > 0:43:51So, he might have paid over the odds, but Mindy has an inkling
0:43:51 > 0:43:54that he is on to a winner
0:43:54 > 0:43:57with this little beauty on the sunny side of the street.
0:43:57 > 0:43:59But he paid £50,000 on auction day
0:43:59 > 0:44:02and how's he going to get on with
0:44:02 > 0:44:05that small issue of raising this whole floor?
0:44:05 > 0:44:07I'm excited to find out what happens.
0:44:07 > 0:44:10Join me later in the programme and you can find out, too.
0:44:13 > 0:44:16Renovating a property often ends up costing you more money
0:44:16 > 0:44:18- and taking longer than you think. - Yep.
0:44:18 > 0:44:20Well, we know how one of our buyers got on
0:44:20 > 0:44:23- but how did the other two fare? - Let's find out.
0:44:25 > 0:44:29We head back to Cwmaman near Aberdare in South Wales now.
0:44:29 > 0:44:34This three-bed mid-terrace was guided at £35,000
0:44:34 > 0:44:39and I headed in ready to roll up my sleeves and plan a major renovation.
0:44:42 > 0:44:44Is this the right house?
0:44:44 > 0:44:46I think it is!
0:44:46 > 0:44:49Sorry, I'm just slightly bemused by the fact
0:44:49 > 0:44:52it looks like somebody's living here.
0:44:52 > 0:44:55'Yes, barring a small spot of damp in the kitchen
0:44:55 > 0:45:00'and some staining on the exterior wall, the house was in the pink.'
0:45:00 > 0:45:03You could pretty much move in, couldn't you? It's lovely!
0:45:03 > 0:45:06'And Mervyn decided the perfectly presented property
0:45:06 > 0:45:08'would be perfect for his portfolio
0:45:08 > 0:45:13'and parted with the price of £44,500,
0:45:13 > 0:45:16'but wife Pam was getting a good deal, too.'
0:45:16 > 0:45:19Cos if I get a property, she gets a holiday.
0:45:19 > 0:45:22- Oh, is that the deal, is it? - Yeah, yeah.
0:45:22 > 0:45:27That's what they pay for, isn't it, my holidays?
0:45:28 > 0:45:31'We left it a generous two months before we came back,
0:45:31 > 0:45:34'but did they encounter major problems?
0:45:34 > 0:45:36'Did they decide to do a massive overhaul instead?
0:45:36 > 0:45:39'Answer - no.'
0:45:40 > 0:45:43# The way I've got it figured out
0:45:43 > 0:45:46# I ain't missed a thing
0:45:46 > 0:45:52# And I can't find a reason to change
0:45:52 > 0:45:58# No, I can't find a reason to change... #
0:45:58 > 0:45:59'OK, it's time to play
0:45:59 > 0:46:03'the Homes Under The Hammer spot the difference game.
0:46:03 > 0:46:06'Any changes here?
0:46:06 > 0:46:08'Any in here?
0:46:08 > 0:46:11'Oh, I think that rug looks a little different in here.
0:46:11 > 0:46:15'Well done if you've spotted that new tenants have already moved in.
0:46:15 > 0:46:17'So, what did Pam and Mervyn actually do
0:46:17 > 0:46:19'to get it ready for rental?'
0:46:19 > 0:46:22We just fixed the guttering on the back of the house.
0:46:22 > 0:46:27The garden, we just cut back the ivy off the back, off the wall
0:46:27 > 0:46:30and the young lady that moved in,
0:46:30 > 0:46:34she has resurfaced the garden and cut a couple of trees down
0:46:34 > 0:46:36and we had an electrician in to check it right through.
0:46:36 > 0:46:41He fitted a new fuse board and a couple of smoke alarms
0:46:41 > 0:46:43and there was a bit of painting,
0:46:43 > 0:46:45there was a bit of condensation on the walls
0:46:45 > 0:46:46and it was done and dusted.
0:46:46 > 0:46:51'The smoke alarms are a safety requirement for any landlord,
0:46:51 > 0:46:53'but the only major problem was that damp.
0:46:53 > 0:46:55'So, how did they get that fixed?'
0:46:55 > 0:46:58Well, I had a painter in and he felt
0:46:58 > 0:47:00because it's a three-storey property
0:47:00 > 0:47:02and there wasn't a lot of air in here,
0:47:02 > 0:47:05it was a bit of condensation so we just rubbed it back
0:47:05 > 0:47:08and put damp resistant paint on and if it comes back,
0:47:08 > 0:47:11we'll have to have a further investigation
0:47:11 > 0:47:13and see what it needs from there.
0:47:13 > 0:47:16But it seems to be holding up OK now, anyway.
0:47:16 > 0:47:19'And while we shouldn't underestimate their hard work,
0:47:19 > 0:47:22'I can't imagine it took that long.'
0:47:24 > 0:47:28Well, my work was literally a day
0:47:28 > 0:47:31and the electrician, when he came in,
0:47:31 > 0:47:33they were sort of half a day to a day,
0:47:33 > 0:47:35sort of two days and it was done and dusted.
0:47:35 > 0:47:39Just about a fortnight, wasn't it, before the people moved in?
0:47:39 > 0:47:42Yeah, probably in total from when we had the keys,
0:47:42 > 0:47:44by a fortnight, they were in.
0:47:44 > 0:47:47'The definition of a quick turnaround!
0:47:47 > 0:47:51'There are pit stops in Formula One racing that take longer
0:47:51 > 0:47:53'than this renovation did.
0:47:53 > 0:47:57'Their total spend was £300 and they even made £100 back
0:47:57 > 0:47:59'selling the mountain bike on the internet,
0:47:59 > 0:48:02'so they should have plenty of money for Pam's holiday.'
0:48:04 > 0:48:08Yes, I've already booked the next one! I'm going to Turkey.
0:48:08 > 0:48:11- Not with me.- Oh, no!
0:48:11 > 0:48:15I'm off with my sister, very rarely with Mervyn.
0:48:15 > 0:48:17I do the work, she spends the money.
0:48:17 > 0:48:19Well, if it works for you, Mervyn!
0:48:19 > 0:48:23But I sense with a good purchase price and a low-budget spend,
0:48:23 > 0:48:27there could be some profit that could fund some more holidays.
0:48:27 > 0:48:29What do two local estate agents
0:48:29 > 0:48:32think are the selling points of this place?
0:48:34 > 0:48:37The property is three-storey, it's got three bedrooms,
0:48:37 > 0:48:40it's got plenty of living space.
0:48:40 > 0:48:42The bathroom is on the bottom floor.
0:48:42 > 0:48:44However, there is an upstairs cloakroom,
0:48:44 > 0:48:48which is an advantage for a three-storey property.
0:48:48 > 0:48:51I think the kitchen and bathroom could do with updating,
0:48:51 > 0:48:55as it is looking very tired, the kitchen in particular.
0:48:55 > 0:48:56I would say that this would really stand out
0:48:56 > 0:48:58because of the access to the rear garden.
0:48:58 > 0:49:02It is three storeys and the garden is nice and flat.
0:49:02 > 0:49:06'The couple's total spend is around £45,000.
0:49:06 > 0:49:08'The agents thought the property
0:49:08 > 0:49:10'could rent for around £450 per calendar month,
0:49:10 > 0:49:12'giving them a 12% yield,
0:49:12 > 0:49:16'and that's what Mervyn and Pam are getting just now.
0:49:16 > 0:49:20'But could the sales value force a rethink of their plan
0:49:20 > 0:49:23'and would it add value to upgrade the kitchen and the bathroom?'
0:49:26 > 0:49:29In the current condition, I would expect this property
0:49:29 > 0:49:32to go on the market for about £60,000
0:49:32 > 0:49:34and achieve very close to that.
0:49:34 > 0:49:36If the work in the kitchen and bathroom were done,
0:49:36 > 0:49:39for sale purposes, I would expect it to be put on the market
0:49:39 > 0:49:44for about £67,000-£68,000 and achieve about £65,000.
0:49:44 > 0:49:47If the property was sold in its current condition,
0:49:47 > 0:49:52it would sell in the region of around about £60,000-£65,000.
0:49:52 > 0:49:55If the work was to be done to the property
0:49:55 > 0:49:57to upgrade the kitchen and the bathroom,
0:49:57 > 0:49:59we would be looking to sell the property
0:49:59 > 0:50:03between £65,000 and £75,000.
0:50:03 > 0:50:0960,000, 44,500 paid, giving us a profit of 15,000 for nothing.
0:50:09 > 0:50:11That's lovely, thank you very much!
0:50:11 > 0:50:14'Of course, that is before taxes and expenses, Mervyn,
0:50:14 > 0:50:17'but they are happy to stick with renting
0:50:17 > 0:50:21'and building their portfolio and who can disagree with that plan
0:50:21 > 0:50:24'if all the properties were this easy?'
0:50:27 > 0:50:29It's not often when you go to auction,
0:50:29 > 0:50:31you find something that's ready to go.
0:50:31 > 0:50:34Normally, there is at least, you know,
0:50:34 > 0:50:375,000 or 10,000 quid to spend on a property.
0:50:37 > 0:50:41This was just two days and a couple of hundred quid, which was lovely.
0:50:48 > 0:50:51We head back to the East End of Glasgow now, to Dennistoun.
0:50:53 > 0:50:56Earlier, I saw a commercial unit guided at 17,000-20,000.
0:50:57 > 0:50:59There were positives,
0:50:59 > 0:51:02like the heavy footfall of potential customers in the street outside,
0:51:02 > 0:51:04but issues like factors' fees,
0:51:04 > 0:51:08the only toilet being in the communal close
0:51:08 > 0:51:12and the state of the shop itself all had to be considered,
0:51:12 > 0:51:15but they didn't stop the enthusiasm of Mindy.
0:51:15 > 0:51:19A local businessman, he paid over double the guide price at £50,000.
0:51:22 > 0:51:23So, did you get caught up?
0:51:23 > 0:51:27- Can you admit to me, on that day, you got so excited...- I did.
0:51:27 > 0:51:30I just had to get a bit of sense of reality.
0:51:30 > 0:51:34- A Mindy check, hold on a moment! - Yeah, just what was I doing here?
0:51:34 > 0:51:37Where was I? But I thought I might as well finish on a round figure.
0:51:37 > 0:51:41'Carried away at auction, but clear minded in his renovation plan,
0:51:41 > 0:51:45'Mindy planned to raise the floor to utilise the basement
0:51:45 > 0:51:48'and let the sunshine in down there, quite literally.'
0:51:50 > 0:51:54We're going to put in a sort of fully equipped sun lounge downstairs
0:51:54 > 0:51:57with four to five sunbeds.
0:51:57 > 0:51:59Up here, as we're moving the floor,
0:51:59 > 0:52:02we're going to build a mezzanine floor here with three chairs
0:52:02 > 0:52:06and a cross range between rent the chairs out for eyebrows,
0:52:06 > 0:52:09an eye studio, nail studio and maybe a hairdresser chair
0:52:09 > 0:52:11and just rent the chairs out.
0:52:11 > 0:52:13'Mindy was sparing no expense
0:52:13 > 0:52:17'with the total quarter of a million investment planned.
0:52:17 > 0:52:20'It was all predicated on getting the appropriate licence
0:52:20 > 0:52:22'from the council, planning permission
0:52:22 > 0:52:25'and all that ambitious work going to plan.
0:52:27 > 0:52:30'Over one year on,
0:52:30 > 0:52:35'we came back to find things hadn't quite gone according to plan.'
0:52:35 > 0:52:39# And we've been taking care of business every day
0:52:39 > 0:52:41# Taking care of business
0:52:41 > 0:52:43# It's all right
0:52:43 > 0:52:48# Taking care of business and working overtime... #
0:52:48 > 0:52:51'Mindy has come along with his son to tell us
0:52:51 > 0:52:54'what happened over the last year.'
0:52:54 > 0:52:56Yeah, what's happened since last time I seen you
0:52:56 > 0:53:00was we were going ahead with opening the shop as a sunbed shop,
0:53:00 > 0:53:04but we had to apply for specific licences from the council
0:53:04 > 0:53:07and, while applying for these licences,
0:53:07 > 0:53:10we've also discovered there is a policy in place,
0:53:10 > 0:53:14a regeneration policy, which has effectively not let us
0:53:14 > 0:53:17get an application for the licence for a sunbeds shop
0:53:17 > 0:53:20and that scuppered all plans.
0:53:20 > 0:53:23The way it stands today is we've been rejected in our application
0:53:23 > 0:53:25and our appeal has been refused, also.
0:53:25 > 0:53:28'Mindy's plans were rejected
0:53:28 > 0:53:31'because the council's regeneration policy is wanting to encourage
0:53:31 > 0:53:35'more bakers and greengrocers, rather than beauty salons.
0:53:35 > 0:53:39'So, while regeneration can have many boons for business,
0:53:39 > 0:53:42'you can always get a nasty bump if you don't do your research.
0:53:42 > 0:53:44'So, what is plan B, Mindy?'
0:53:44 > 0:53:48Plan B - because of other multiples and supermarkets
0:53:48 > 0:53:50that are successful in the discount range,
0:53:50 > 0:53:54we're going to change it now into a pound concept sort of shop,
0:53:54 > 0:53:58a Smart Shop or Happy Shopper sort of concept into the shop,
0:53:58 > 0:54:00so that's the plan.
0:54:02 > 0:54:05'Mindy doesn't need to go for change of use for this plan
0:54:05 > 0:54:08'so that will be simpler, as is his decision
0:54:08 > 0:54:11'not to get into that ambitious building work
0:54:11 > 0:54:13'with moving floors up and down.
0:54:13 > 0:54:16'But he has made a number of changes.'
0:54:17 > 0:54:22So we've put a brand-new floor in, we've put a cladded floor in.
0:54:22 > 0:54:24The staircase is becoming centralised.
0:54:24 > 0:54:29It was more to the right of the shop and therefore,
0:54:29 > 0:54:32if we centralise it, we can then use both walls.
0:54:32 > 0:54:35The shop's narrow so we centralise the staircase,
0:54:35 > 0:54:36then we can use both sides of the walls
0:54:36 > 0:54:38for shelving and hanging products.
0:54:38 > 0:54:41'Downstairs will be used for storage
0:54:41 > 0:54:44'and of course a fair bit of work has been done
0:54:44 > 0:54:46'to the front of the building.'
0:54:46 > 0:54:49Brand-new aluminium shop fronts, electric roller shutters
0:54:49 > 0:54:52and we've still got lots more to do.
0:54:52 > 0:54:54'During the renovation,
0:54:54 > 0:54:56'Mindy discovered the shop was previously a butchers
0:54:56 > 0:55:00'and he had to remove some equipment still built into the ceiling.
0:55:00 > 0:55:04'He also discovered these beautiful original tiles
0:55:04 > 0:55:08'and tried to replace or restore the broken ones, but to no avail.
0:55:08 > 0:55:11'With the renovation having taken 15 months so far,
0:55:11 > 0:55:14'how much has he spent?'
0:55:15 > 0:55:19I've spent nearly £20,000 for trying to use up-to-date,
0:55:19 > 0:55:20the best of stuff.
0:55:20 > 0:55:26In the retail industry, customers are looking for a bit of standards.
0:55:26 > 0:55:28'Mindy clearly wants to work to a high standard,
0:55:28 > 0:55:33'but this has been a protracted and so far pretty costly project.
0:55:33 > 0:55:34'Has he enjoyed it?'
0:55:34 > 0:55:36So far, there's been highs and lows,
0:55:36 > 0:55:40but we paid over double the guide price for the shop.
0:55:40 > 0:55:43I'm a great believer of what's to be's to be
0:55:43 > 0:55:45and I've great confidence in what we do
0:55:45 > 0:55:48and I'm a professional in the retail industry.
0:55:50 > 0:55:54'So, from a retail pro to two experts in the local property market,
0:55:54 > 0:55:58'let's start by asking the agent who saw it the first time
0:55:58 > 0:55:59'what he thinks of the work.'
0:56:01 > 0:56:04There's been a reasonably significant amount of work
0:56:04 > 0:56:07and they've stripped out a lot of the redundant space at the back
0:56:07 > 0:56:09and, having been down in the basement,
0:56:09 > 0:56:11there's a lot of the rubbish been taken away
0:56:11 > 0:56:15so it's a big improvement to what was there before.
0:56:15 > 0:56:17It's my first time inside the building.
0:56:17 > 0:56:18The work that has been done,
0:56:18 > 0:56:20they have stripped out the previous fittings,
0:56:20 > 0:56:22although there's still some work needing done to it.
0:56:22 > 0:56:26'Both agents were agreed that the property would need
0:56:26 > 0:56:30'a further five to ten grand spending on it to bring it up to standard.
0:56:30 > 0:56:35'An added 10,000 would take Mindy's spend to £80,000
0:56:35 > 0:56:39'so what value would the agents put on the completed shop premises?'
0:56:39 > 0:56:44I would estimate the property would be worth around £40,000.
0:56:44 > 0:56:46Once it's been refurbished,
0:56:46 > 0:56:48I think there would be a good demand from purchasers
0:56:48 > 0:56:49and occupiers for it.
0:56:49 > 0:56:52I think it would command a price of £55,000-£60,000.
0:56:52 > 0:56:53I think the second one I agree with.
0:56:53 > 0:56:55The first one I think is a little bit low.
0:56:55 > 0:56:58So, even that higher estimate of 60,000
0:56:58 > 0:57:01would see a £20,000 loss for Mindy,
0:57:01 > 0:57:06but perhaps the shop will fare better in rental values.
0:57:06 > 0:57:08If it's going to be up for lease,
0:57:08 > 0:57:11I would expect it to command a rent of £5,500-£6,000 per year.
0:57:11 > 0:57:14I would estimate that, after completion of the works,
0:57:14 > 0:57:19he should get around £5,000 per annum or £400 per calendar month.
0:57:19 > 0:57:21The rental values for the property
0:57:21 > 0:57:24are a true reflection of what the market appraisals are just now,
0:57:24 > 0:57:27but as I said from the kick-off, this is a long-term investment
0:57:27 > 0:57:31and it is to run a business, a profitable business from.
0:57:31 > 0:57:37'Even the top possible yield of 7.5% is of no real interest to Mindy.
0:57:37 > 0:57:39'He is looking to the future
0:57:39 > 0:57:42'and being able to pass this down to his son.
0:57:42 > 0:57:46'Possibly the regeneration will also help this property
0:57:46 > 0:57:48'come good in the end. But has he been put off?'
0:57:51 > 0:57:53It's been a learning curve, this shop.
0:57:53 > 0:57:55I'm in the process of doing another one,
0:57:55 > 0:57:58but I would say to anyone - do your homework.
0:57:58 > 0:58:02Speak to the council, speak to Land and Environment
0:58:02 > 0:58:04and make sure you know exactly what you're doing
0:58:04 > 0:58:06before going to an auction.
0:58:09 > 0:58:12Each buyer has their own renovation story to tell.
0:58:12 > 0:58:14Yep, and we've got plenty more lined up for next time.
0:58:14 > 0:58:17So make sure you join us then for more Homes Under The Hammer.
0:58:17 > 0:58:18- Goodbye.- Goodbye.