Episode 46 Homes Under the Hammer


Episode 46

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Transcript


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Hello and welcome to the show. Now, there's no doubt about it.

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Buying property can cost a lot of money.

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Yes. It could be the most expensive purchase you've ever made, taking years and years of saving.

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Oh, yes. There's a lot at stake.

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It is so important to get it right and maybe you could buy your next home under the hammer.

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It's all very well having a firm plan in your head

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when buying property at auction but the best laid plans can go astray.

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They can, Dion.

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And it's OK to admit you were wrong

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and then to go about changing your plans.

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So, what did today's buyers have in their mind?

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Let's take a look at what they bought.

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In Hainault, Essex, I've got a plan to go into the loft

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and add a bedroom and a bathroom.

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And it will be much more saleable.

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No lofts at this bungalow in Stoke, Lucy,

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but cosmetic changes could create cash.

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That means you can add value and that's what we're looking for.

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And in Folkestone you could add value by uncovering this

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mid-terrace's original features.

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Get that on show. I like it. I really do.

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All these properties were bought at auction.

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We'll find out who got them and how much they paid when these homes went under the hammer.

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Yours at 99.

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We are in Hainault near Ilford in Essex.

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It lies north and east of central London

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and it's just over half an hour by Tube from here to the city.

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It's hard to believe now but most of this area once formed

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part of a 3,000 acre forest owned by a local abbey.

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Now, it's very much a bustling suburb

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with direct train links into London.

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The property I am here to see is on this busy main road. Here it is.

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It is a four-bedroom mid-terrace

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and it went to auction with a guide price of £250,000 plus.

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It looks all right from the outside. Let's go in.

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250 grand might seem like a high guide price,

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but the average house price in the area is about 293,000.

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Is it just this busy road that's making the guide price so attractive?

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It can get quite noisy there but once you are in...

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..look. Lovely and quiet. So, that's nice.

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First impressions, well, really nice hallway. Tatty.

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It needs everything doing. You can see straight away.

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New carpets, new flooring, paint, wallpaper.

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But it does feel like a family house.

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You've got a great size reception there with a nice bay window in the front.

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So you could really imagine a family in there.

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Downstairs loo. Big tick.

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And into a lovely open plan sort of dining space.

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I'm presuming through here, well,

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this is an extension leading right the way around to...

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Ta-dah! The kitchen.

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So this to me would work fabulously with a family.

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You could have a kitchen table over there, you could have sofas,

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you could see the kids, you could do the cooking.

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Look at that. That's a really nice butler sink.

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There are a few bits and pieces in this house I think you could salvage.

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A really nice oven as well.

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So, yes, with a bit of cleaning, some new carpets, some new paint,

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a bit of money spent down here, this could really work well for a family.

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And, out the back, there's a family sized garden with a handy little cabin, too.

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This could be a nice little spot of tranquillity

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because you can't hear a single sound from that busy road out here.

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# It's oh, so quiet

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# Sh! Sh!

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# It's oh, so still

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# Sh! Sh! #

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And if you need somewhere to park the car,

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there's this additional garage.

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Upstairs, there are three bedrooms

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and, again, they all have generous proportions.

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The bathroom is up here too and will need to be updated,

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but there's plenty of space to play with.

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So you've got a spacious layout,

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a little oasis of calm in the garden,

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some charming features,

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potential to add value and all just half an hour from central London.

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Pulls on the heart strings, doesn't it?

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# ..When you fall in love. #

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Now, up in the attic is the fourth and final bedroom.

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I'm not convinced that staircase is building reg compliant,

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so it's best to check this loft conversion has been done properly

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and all those boxes are ticked,

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but once you're up here, well, you've got some space,

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although putting in a proper dormer window along here

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I think will be the way to go.

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It'll allow for more square footage

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and you might even be able to think about

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squeezing in an en-suite bathroom up here.

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That would make this a four-bedroom, two-bathroom property

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and it'll be much more saleable.

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So although I said initially this was a four-bed house,

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until you know this room passes building regs,

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officially it isn't.

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Regulations that cover escape from fire, among others, need to be met.

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Let's talk to a local estate agent

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about what he thinks of this property,

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guided at £250,000.

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The property's brilliant and I like the size of the property,

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size of the room. There's room in the attic -

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if that room can be made to some use,

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then that will enhance the value of the property.

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Does this agent have any thoughts about the attic space as it stands?

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The attic, I think, you know,

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it's not building-compliant at the moment,

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but as long as we get a completion certificate from the local council,

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then that will add good value to the property.

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Let's talk numbers. Would a dormer be worth the hassle?

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First, resale price after a straight refurbishment.

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If the property is as it is refurbished

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and you don't add any additional accommodation to the property,

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and it is made of average standard,

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then it'll be worth £375,000.

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If you make the loft room bigger with the dormer,

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then the property will be worth around £400,000.

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Even taking into account the cost of putting in that dormer,

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it's safe to say it's well worth calling the council then

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for that £25,000 increase in resale value.

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What impact would an extra bed have on rentals?

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The rental value of this property,

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if it is just refurbished to an average standard,

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would be about £1,700 per calendar month.

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If it's been turned into a loft dormer and all that,

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it can fetch £2,000 or even in excess of £2,000 in the area.

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So this Hainault house needs a bit of work,

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but it's nothing too difficult or demanding.

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Basically, it's a straightforward property project for somebody,

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although I would check that loft is building reg compliant.

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Let's find out who bought it at the auction.

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Four-bed, fabulous-looking house. You can see, double bay.

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Value bids on this - 300, anywhere?

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300?

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Go the other way, then - 270.

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Not going to go below 270.

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270 in the front. 270.

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275.

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-There.

-275, got you.

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275, 280.

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Yep? 280. 285. 290, sir.

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295.

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300.

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305.

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306?

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That's it, 306. Try and help.

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305, standing up, with you.

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306, another spot there.

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-307.

-So bidding had slowed,

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but there was still a number of interested parties.

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We rejoin the bidding at 317,000.

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317, down here.

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318, what took you so long?

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Men are all sort of...

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Women just bid, men think too much.

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318, 319.

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320.

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321.

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322.

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322, back in.

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323, 324.

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325.

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326.

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325, then, first time. Second time.

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Third and last time, if you're all done.

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Sold, 325.

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Is that your first one?

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Yeah? Well done.

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# That's how I learned

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# There's always a first time

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# For everything... #

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So the hammer came down at 325,000

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and it was best pals and budding property developers Fatima,

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here on the left,

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and Mehreen that made the successful bid.

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This is their first development together,

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so I wanted to know their plans.

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-Ladies, congratulations.

-Thank you very much.

-Lovely to meet you both.

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-Thank you.

-Fatima and Mehreen,

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I know you went to auction with a few properties in mind.

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You came away with this one.

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-How happy are you that you've got this property?

-Very.

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Very. We really liked the location of this property -

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really good schools around

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and the excellent transport links to central London,

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-so it did...

-And it's very close to where we live as well,

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so much easier for us to come

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and keep a check when the work's being done.

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So, Mehreen, how much research did you do, realistically,

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both of you, into this?

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A lot. I think we looked at around 15-20 properties,

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made spreadsheets, did market comparables, checked them out,

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-then we shortlisted it down to five properties?

-Yep.

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So have you ladies decided recently to go into this business together?

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We're full-time mums and we wanted to do something and both of us

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were quite interested in the property business,

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property development, so we decided to work together

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-and this our very first own project.

-Whoohoo!

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This is your first venture and we've got you!

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First auction, first house and here we are.

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THEY CHUCKLE

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# So these are the ropes

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# The tricks of the trade

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# The rules of the road... #

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If you want to succeed at buying property at auction,

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you could do worse than follow Fatima and Mehreen's example.

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They've viewed plenty of properties,

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did their research

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and went to auction with their finances in order.

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That's preparation indeed and that's what you need to do.

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What I want to know is what you both intend doing here,

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because, obviously, the game plan for you both

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is you need to add some value.

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Basically, we're planning to go into the loft room -

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the loft room at this stage,

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it doesn't have planning permission and it's really small,

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so we want to make it bigger, brighter, with dormer windows

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and we're going to put an en-suite in there,

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so that is going to convert this house

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from a three-bed property to a four-bed one

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and, secondly, this is on a major road,

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so we're going to add a driveway in front of the property as well,

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just to add more appeal to it.

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We want to change the kitchen, new kitchen, new bathroom,

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so give it a whole new, modern look -

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nice paint, spotlights,

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something which makes it look nicer and bigger.

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-Modernised, everything.

-Yeah, basically just modernisation.

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OK, so you're really going to turn this into a family home, aren't you?

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Exactly, yes. We're really going to modernise it top to bottom

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-and we realise it's a lot of work, but we're all set for it.

-Yeah.

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And you two have got so much energy,

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-cos it's the first one you've ever done.

-Exactly.

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-We've been best friends since 12 years, so...

-Yeah.

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Ah, best pals on a new adventure together.

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How great is that?

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Their budget is a healthy 30,000 with a £5,000 contingency.

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They're looking to sell the house,

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but if the profit isn't high enough for them,

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they'll rent it out until the value increases.

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What do their other halves think of them working together?

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-They're very happy.

-They are very happy for us.

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They really want us to succeed, they want us to do well,

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so they've given us full support.

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-Good!

-They're always there to help us.

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And her husband has done properties before as well.

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My husband's done property before. He's rented a few out at the moment.

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-He's sold a few. We've got a very nice builder at hand.

-We do, yes.

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Yeah, we're quite positive about it all.

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But are you going to give each other certain roles?

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Sometimes it can work better that way.

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-Have you thought about doing it that way?

-Not really.

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-Everything together at the same time?

-We'll do it together.

-Yeah.

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We're really organised, with spreadsheets and everything,

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so everything is just going to be very proper, very organised

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and we do it together.

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-Who's got the spreadsheets?

-Me!

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THEY CHORTLE

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Do you think this might hinder the friendship in any way,

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shape or form, or do you think it'll only make the bond stronger?

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We think it'll make the bond stronger,

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because we're very honest with each other.

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-If we don't like something, we'll just say it to each other.

-Yeah.

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I think that's the way to go about it.

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Let's hope you both make as much money as you want as well.

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-Thank you very much.

-Thank you.

-Well done.

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-Fatima.

-Thank you.

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-Mehreen.

-Thank you.

-Lovely to meet you both.

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Friends Fatima and Mehreen are full-time mums

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and they've decided that property developing

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is a good business to get into.

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They've done all the planning and their builder is ready to go.

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This is their first project

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and it's the first one they've done as friends working together,

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so will getting into the property game

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put a strain on their friendship,

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or will this house mark the start of a great venture for the two of them?

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You can find out how the ladies get on later in the programme.

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I'm in Stoke today

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and in a residential area only two miles from the city centre.

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It seems that, here, the bungalow is king

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and why not?

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Single-storey living often comes with a good-sized floor plan

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on a decent-sized plot.

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And with bungalows rarely built these days,

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they're becoming much sought-after,

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all of which, from an investor's point of view,

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is enough to get the pulse racing.

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-# Could it be I'm falling in love

-With ya, baby...

-#

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So, for lots of reasons, we love bungalows

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and the one that was up for auction has something else going for it,

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because it's quite rare in the fact that it's a mid-terrace bungalow.

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Now, the reason why that's good is that maybe,

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if you buy a mid-terrace house, there's a possibility

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you might have noisy neighbours, something like that.

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Given the kind of person who genuinely chooses to live

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in a bungalow, it's more likely that you're going to have

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nice, quiet neighbours, so, bonus!

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Guide price for this one was £49,000 plus.

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Two bedrooms, let's take a look.

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So, what have we got?

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Well, straight away, walking through the front door

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into a good-sized lounge,

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but you can tell it's going to need a bit of modernisation.

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But, you know, you've got to see through its current condition

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to what it might become.

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It's a good size, it's got an open fire, so we like that.

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Just even by changing the carpets,

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either plastering or putting new wallpaper on the walls,

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what a change you would make.

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So, through into this little central area,

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off which come your bedrooms.

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First one there, that's a good size.

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Again, in need of modernisation.

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Second bedroom is over that way.

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Bathroom and loo there

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and then through to your kitchen.

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Now, it's pretty much like the rest of the house so far -

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not in the best of conditions.

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But, straight away, this place is screaming out - fantastic potential.

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Do that plasterwork, change the carpets, change the kitchen,

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do the bathroom and you would absolutely revolutionise this place.

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That means you can add value and that's what we're looking for.

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# Talking about a revolution

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# Cos finally the tables are starting to turn

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# Talking about a revolution, oh, no... #

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The key thing to any property investment is can you add value?

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And, preferably, can you add value without too much work?

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The answer with this bungalow looks to be a resounding, "Yes!"

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There doesn't at this stage appear to be any real structural issues.

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The roof's fine, but the windows and doors will need doing.

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The whole property needs a complete refurbishment -

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electrics, central heating,

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bathroom, kitchen,

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the lot.

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And, OK, that does sound like plenty of work,

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but nothing a competent builder couldn't cope with.

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Yes, it will cost, say, around £15,000 to do,

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but with a guide price that was £49,000 plus

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when the average price in the area for a bungalow

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is between £90,000-£100,000, well, you can see where the value is.

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So, out the back, and first of all into this conservatory.

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Now, this is a fairly substantial construction

0:17:220:17:24

with the brick on the bottom here,

0:17:240:17:26

but, above that, it all starts to go a bit horribly wrong.

0:17:260:17:28

I think as a design concept, as in having a conservatory here -

0:17:280:17:32

great idea, cos it's a brilliant way

0:17:320:17:34

to extend the usable space of the bungalow

0:17:340:17:37

and actually could be very pleasant,

0:17:370:17:39

especially if you imagine it opening out into the garden.

0:17:390:17:42

At the moment, again,

0:17:420:17:43

you wouldn't necessarily want to stare out onto this,

0:17:430:17:46

cos it's in a bit of a state, but a bit of tidying up

0:17:460:17:48

and it could be really pleasant.

0:17:480:17:51

Additional bonus -

0:17:510:17:52

you've got a garage there with an access road, so that's good.

0:17:520:17:55

All in all, it just adds to the general concept of this place,

0:17:550:17:59

which is it's just waiting for somebody to grab it and go,

0:17:590:18:02

"There you go, that's your potential," cos it's got lots.

0:18:020:18:06

# Bend me, shape me, any way you want me

0:18:060:18:10

# As long as you love me, it's all right... #

0:18:100:18:14

Well, I think if it had been bought at the right price,

0:18:140:18:17

this is a perfect investment opportunity.

0:18:170:18:19

What does a local estate agent think?

0:18:220:18:24

First impressions of the bungalow

0:18:260:18:27

is that it does require, obviously, modernisation.

0:18:270:18:30

A lot of it is cosmetic.

0:18:300:18:32

I think one of the big selling points of the bungalow

0:18:320:18:35

is the fact there's a garage to the rear.

0:18:350:18:37

Yes, all positives, but what does he see as the best way

0:18:370:18:41

to increase its appeal to the local market?

0:18:410:18:44

The main thing to increase value of the bungalow

0:18:440:18:46

I feel maybe would be a conservatory or small extension to the rear,

0:18:460:18:51

which will just provide increased living space.

0:18:510:18:54

Great, so let's talk figures

0:18:540:18:56

for the bungalow that was guided at £49,000 plus.

0:18:560:18:59

After refurbishment,

0:19:000:19:01

I would place the property on the market in the region of £100,000

0:19:010:19:05

and the rental income would be in the region

0:19:050:19:08

of £500 per calendar month.

0:19:080:19:10

Well, this really is a property that screams potential

0:19:150:19:19

and for anything like that £49,000 plus guide price,

0:19:190:19:23

I don't think there's too many decisions to make.

0:19:230:19:26

Let's see who agreed when it went under the hammer.

0:19:260:19:28

Lot number five. It's a two-bedroom mid-terrace bungalow.

0:19:310:19:35

Popular spot, needs improvement.

0:19:350:19:37

There's gardens and a garage. Can we get it going at 43, lot number five?

0:19:370:19:42

Start at 43 bid. Thank you.

0:19:420:19:44

At £43,000. 45, can I say now?

0:19:440:19:47

45, thank you. At 45,000.

0:19:470:19:50

47?

0:19:500:19:51

At 45,000. 47?

0:19:510:19:54

49? £49,000. 51?

0:19:540:19:58

51.

0:19:580:20:00

53? £53,000.

0:20:000:20:03

55?

0:20:030:20:05

55 at the back.

0:20:050:20:06

57? 57.

0:20:060:20:08

59 seated now.

0:20:080:20:10

61?

0:20:100:20:11

I'll take once if it helps - 60?

0:20:110:20:14

60 at the back, in the middle at the back. 60, 61.

0:20:140:20:17

62.

0:20:170:20:18

63.

0:20:180:20:19

64.

0:20:190:20:21

65, sir?

0:20:210:20:22

65.

0:20:240:20:25

Shaking his head. Still with you, sir. Seated at £65,000.

0:20:250:20:30

66 anywhere else?

0:20:300:20:31

New bidder, 66.

0:20:320:20:34

Shaking his head. With you, sir, first bid.

0:20:340:20:37

£66,000. 67 anywhere else?

0:20:370:20:40

If not, I'm selling it at £66,000.

0:20:400:20:43

For the first time,

0:20:430:20:45

at £66,000.

0:20:450:20:47

For the second time.

0:20:470:20:48

Third and final time, no mistakes. Gentleman with the green sweater on.

0:20:480:20:52

Bid's at 66.

0:20:520:20:53

Third and last time.

0:20:530:20:55

You've bought it, sir, well done.

0:20:550:20:57

So the hammer fell at £66,000

0:20:570:21:00

and the successful bidders for the two-bed bungalow in Stoke

0:21:000:21:03

were John and Chris.

0:21:030:21:04

John is a joiner by trade

0:21:060:21:08

and his wife Chris is a clinical studies coordinator.

0:21:080:21:11

They joined me back at the property to tell me more.

0:21:110:21:14

-Chris, John, great to meet you both.

-Hi.

-You too.

0:21:150:21:18

-Congratulations. BOTH:

-Thank you.

0:21:180:21:20

Tell me why you wanted to buy the bungalow.

0:21:200:21:22

We'd just kept an eye out for a bungalow before

0:21:220:21:24

for my mother and father,

0:21:240:21:26

so we saw this come up and we know the street,

0:21:260:21:29

-it's a good street, so we thought we'd go for it, didn't we?

-Yeah.

0:21:290:21:32

So are they downsizing? Or where are they at the moment?

0:21:320:21:36

It's about the same size, but it's closer to us,

0:21:360:21:39

closer to the grandchild, so...

0:21:390:21:41

-Handy for a baby-sitter.

-Yeah, right!

0:21:410:21:43

-Are they currently in a bungalow?

-They are, yeah.

0:21:430:21:45

So they're moving from one bungalow to another?

0:21:450:21:47

Yeah, they want to change and it's closer for us,

0:21:470:21:49

so it's easier for us to help them

0:21:490:21:51

-and vice versa.

-Fantastic.

0:21:510:21:53

So have they seen it in its current state?

0:21:530:21:55

-Yeah!

-THEY CHUCKLE

0:21:550:21:57

What did they say when they first saw it?

0:21:570:22:00

I think they were having second thoughts, but I talked them into...

0:22:000:22:03

They think we're going to do a good job.

0:22:030:22:05

Under a bit of pressure, aren't you?

0:22:050:22:07

Are they going to have some input in terms of what you do?

0:22:070:22:10

Uh, yeah, a bit, yeah.

0:22:100:22:13

I think most of the decisions will be made by John.

0:22:130:22:16

Right.

0:22:160:22:17

# I'm gonna make you love me

0:22:170:22:21

# Yes, I will

0:22:220:22:24

# Yes, I will... #

0:22:240:22:26

So it sounds like John and Chris will take the lead here

0:22:260:22:30

and John certainly has the skill set to make it successful.

0:22:300:22:34

He's a self-employed joiner.

0:22:340:22:36

How do they plan to make John's parents love this place?

0:22:360:22:39

Well, we have a new central heating system,

0:22:400:22:43

rewire, new bathroom, new kitchen.

0:22:430:22:46

All plastic all the way round, new windows, doors.

0:22:480:22:51

Maybe some patio doors coming out of the bedroom.

0:22:510:22:54

-Oh, nice!

-Then, obviously,

0:22:540:22:56

patio doors going out into the garden.

0:22:560:22:58

Are you going to build a new conservatory on this

0:22:580:23:00

and put a new roof on and stuff, or are you going to do it in plastic?

0:23:000:23:03

New roof.

0:23:030:23:04

New conservatory, cut the wall down.

0:23:040:23:06

Windows across there and I think new windows and doors all round.

0:23:060:23:09

And can you do all that?

0:23:090:23:11

Yeah.

0:23:110:23:12

-I'm hoping so!

-Brilliant.

0:23:120:23:14

We'll obviously have this plumbed out as well,

0:23:140:23:16

so we'll have heating in this room as well,

0:23:160:23:18

so it's suitable for the winter as well as the summertime.

0:23:180:23:22

I reckon your mum and dad will spend a lot of time in this room.

0:23:220:23:25

-It's quite bright, isn't it?

-Yeah, it's lovely.

0:23:250:23:27

What about the garage?

0:23:270:23:29

Tidy it up as best we can, I think.

0:23:290:23:31

It's good off-street parking,

0:23:310:23:32

so there's good access at the back as well.

0:23:320:23:35

What's the budget for the work?

0:23:350:23:37

-Around 15,000-16,000.

-OK, that sounds reasonable.

-Yep.

0:23:370:23:41

And how much of it are you doing yourself?

0:23:410:23:44

Most of it, yeah.

0:23:440:23:45

With John in full-time employment as a joiner,

0:23:450:23:48

he plans to do most of the work on evenings and weekends

0:23:480:23:51

and they hope to complete the refurbishment

0:23:510:23:53

in around eight months.

0:23:530:23:55

# I'm going to make you love me... #

0:23:550:23:58

And then once you've done this,

0:23:580:24:00

you might get the bug and do it some more, or what?

0:24:000:24:03

We've already done it twice before.

0:24:030:24:04

This is the third one.

0:24:040:24:07

What did you do with the other ones?

0:24:070:24:08

They're rented out at the moment.

0:24:080:24:10

-One, I think, has been rented out about 18 months.

-Yeah.

0:24:100:24:13

-The other one about eight months, so...

-Going OK?

0:24:130:24:16

-Yeah, been really good.

-We had to refurb both of those as well.

0:24:160:24:20

-They went back to brick and we started again.

-Really?

-Yep.

0:24:200:24:23

So we've been through this, the third time we've been through this.

0:24:230:24:27

-But they weren't auction properties.

-Right.

0:24:270:24:31

-Listen, we really look forward to seeing how you get on.

-Thank you.

0:24:310:24:33

Exciting project with lots of good reasons for doing it,

0:24:330:24:36

-so congratulations and good luck.

-Thank you.

-Thank you.

0:24:360:24:40

Well, how great that Chris

0:24:400:24:41

and John are sorting this place out for John's parents.

0:24:410:24:44

I always love those kind of stories

0:24:440:24:46

and I know they will transform this little bungalow.

0:24:460:24:49

You can see what it turns out like later in the show.

0:24:490:24:53

Coming up, you could really transform this two-bed in Folkestone,

0:24:540:24:58

although height restrictions will apply.

0:24:580:25:01

And, as you can see, it's not a standard-sized doorway.

0:25:010:25:04

And in Stoke, it's not headroom that's the issue, it's lack of time.

0:25:070:25:10

As soon as we started, work got really busy.

0:25:100:25:14

We're heading back to Hainault in Essex now,

0:25:200:25:23

where earlier I saw a four-bed mid-terrace guided at £250,000.

0:25:230:25:28

Inside was spacious, with big bedrooms,

0:25:290:25:32

a bathroom

0:25:320:25:34

and a generous back garden.

0:25:340:25:36

It just really needed a bit of modernisation.

0:25:360:25:39

So, yes, with a bit of cleaning,

0:25:390:25:42

some new carpets and new paint, a bit of money spent,

0:25:420:25:45

this could really work well for a family.

0:25:450:25:47

But the fourth bedroom in the loft didn't meet building regulations.

0:25:490:25:53

My solution - get planning permission and add a dormer

0:25:530:25:56

to give enough space for an en-suite shower room up there.

0:25:560:25:59

That would make this a four-bedroom, two-bathroom property

0:26:010:26:04

and it'll be much more saleable.

0:26:040:26:07

Big potential saw big interest at auction

0:26:070:26:10

and the hammer fell at 325,000.

0:26:100:26:14

Sold, 325.

0:26:140:26:16

Is that your first one?

0:26:160:26:18

Yeah? Well done.

0:26:180:26:19

This pair of pals, Fatima, here on the left, and Mehreen

0:26:190:26:22

were the successful bidders.

0:26:220:26:24

Both are full-time mums and this was their first development project.

0:26:240:26:28

Their plan was to modernise throughout,

0:26:290:26:32

ensure the loft conversion met building regulations

0:26:320:26:35

so the fourth bedroom is certified

0:26:350:26:37

and then sell the property on.

0:26:370:26:40

OK, so you're really going to turn this into a family home, aren't you?

0:26:400:26:43

Yes, exactly.

0:26:430:26:44

We're really going to modernise it top to bottom

0:26:440:26:46

-and we realise it's a lot of work, but we're all set for it.

-Yes.

0:26:460:26:49

And you two have got so much energy

0:26:490:26:51

-because it's the first one you've ever done!

-Exactly!

0:26:510:26:54

-We've been best friends since 12 years, so yeah.

-Yeah.

0:26:540:26:57

So, best mates who were best prepared. Three months on...

0:27:000:27:04

I can see the exterior has their promised off-street parking,

0:27:040:27:08

but, inside, have these friends freshened up a family four-bed?

0:27:080:27:12

# Ooh, you make me live

0:27:140:27:18

# Whatever this world can give to me

0:27:180:27:22

# It's you, you're all I see

0:27:220:27:26

# Ooh, you make me live now, honey

0:27:260:27:30

# Ooh, you make me live

0:27:300:27:33

# Oh, you're the best friend

0:27:350:27:38

# That I ever had

0:27:380:27:40

# I've been with you such a long time

0:27:400:27:43

# You're my sunshine

0:27:430:27:46

# And I want you to know that my feelings are true

0:27:460:27:50

# I really love you

0:27:500:27:53

# Oh, you're my best friend... #

0:27:530:27:57

They promised the whole place would be modernised top to bottom

0:27:580:28:02

and that's exactly what the duo have done.

0:28:020:28:05

The loft is very impressive and now it's an en-suite bedroom

0:28:050:28:09

fully complying with building regulations.

0:28:090:28:11

Um, basically, we spotted the opportunity to create extra space

0:28:150:28:20

in the house by extending this room.

0:28:200:28:22

We've put in the dormer window to make it more spacious,

0:28:220:28:25

bright and airy, and we've put in the en-suite here

0:28:250:28:29

and now we're really pleased with the result.

0:28:290:28:31

It's one of the main features of this house.

0:28:310:28:33

I'm also loving the modern feel of the kitchen.

0:28:340:28:37

So, basically, in the kitchen,

0:28:400:28:42

you can see that we've completely changed the whole thing.

0:28:420:28:45

We've got new tiles on the floor, we've got new tiles on the walls,

0:28:450:28:48

new cooker, new sink, everything's new.

0:28:480:28:50

We tried to add a modern feature

0:28:500:28:52

with some LED lights in the skirting.

0:28:520:28:54

We actually worked together in deciding on what colour

0:28:540:28:57

and what tiles to do.

0:28:570:28:59

So, we worked together as a team and this is the result.

0:28:590:29:03

Family homes need parking space

0:29:080:29:10

and that's what they've done at the front here.

0:29:100:29:14

We have built a new driveway.

0:29:140:29:16

Since it's a busy road, it's always good for people to come back home

0:29:160:29:19

and park in their own driveway.

0:29:190:29:20

We've got a garage at the back.

0:29:200:29:22

It's always convenient to have one at the front.

0:29:220:29:24

Speaking of the garage at the rear, which, like the cabin house,

0:29:280:29:31

they've left unchanged.

0:29:310:29:33

The back garden is now ideal for those rare summer barbecues.

0:29:330:29:37

Removing the shed has created a blank canvas

0:29:370:29:40

for any buyer to create the garden of their dreams.

0:29:400:29:43

But this resplendent renovation wasn't rapid.

0:29:430:29:46

They went a few weeks over their three-month timescale.

0:29:460:29:49

We were very lucky we had a very good builder,

0:29:490:29:52

so he applied for the planning permission

0:29:520:29:54

and I think that was one reason that caused the delay

0:29:540:29:56

in the duration in which we wanted to finish.

0:29:560:30:01

Yeah, I think it was fine, just took a bit longer.

0:30:010:30:05

The quality of the finish and those planning delays

0:30:050:30:07

have meant they've gone over their £30,000 budget.

0:30:070:30:11

Well, actually, we've gone £10,000 over the budget,

0:30:120:30:15

but, to be honest, it was our first time,

0:30:150:30:17

so we kind of underestimated the costs

0:30:170:30:19

and we've done so much work in this house,

0:30:190:30:22

it's a complete refurbishment from top to bottom.

0:30:220:30:25

Well, they did have a £5,000 contingency,

0:30:250:30:27

so it's not that bad, ladies.

0:30:270:30:29

You've done well.

0:30:290:30:31

But has working together tested the friendship?

0:30:310:30:34

No, we haven't had any issues. We've really enjoyed doing it together.

0:30:340:30:37

-I think it's just made it stronger, if anything.

-Yes.

0:30:370:30:40

We'll definitely advise other people

0:30:400:30:42

who want to come into this sort of field

0:30:420:30:45

and who especially have got kids.

0:30:450:30:47

It's very comfortable, you can work around your kids' routines.

0:30:470:30:51

-We're already looking forward to the next project.

-Yes, of course, yeah.

0:30:510:30:55

Hold your horses, ladies.

0:30:550:30:57

All this enthusiasm for your first project

0:30:570:30:59

is already carrying over to the next,

0:30:590:31:01

but they'll need to make some profit here

0:31:010:31:03

if they're going to carry some money into the next renovation.

0:31:030:31:07

We asked along two local estate agents to give us their thoughts,

0:31:080:31:11

including the agent who saw it the first time.

0:31:110:31:14

I think they've done a good change in the property.

0:31:160:31:19

I'm impressed by the neutrality of the property

0:31:190:31:21

and I really like this one.

0:31:210:31:24

I think I like the bathroom,

0:31:240:31:26

especially the mirrors they have used, which are very, very good.

0:31:260:31:29

It adds a feature to the bathrooms.

0:31:290:31:31

I think the kitchen, both the bathrooms,

0:31:310:31:34

all the fitments are modern, fresh.

0:31:340:31:37

The finish, even to the painting and the walls

0:31:370:31:41

is very good. It's a very well put together refurbished property.

0:31:410:31:46

The agents are impressed and they've suggested the house could command

0:31:480:31:53

a top rental value of £2,000 per calendar month.

0:31:530:31:56

And with Fatima and Mehreen's total spend at 370,000,

0:31:560:32:01

that would generate just over a 6% yield,

0:32:010:32:04

but the ladies are keen to sell,

0:32:040:32:06

so what kind of values can they expect?

0:32:060:32:08

I would set an asking price in the region of £415,000.

0:32:090:32:15

I think offers would come in reasonably close,

0:32:150:32:17

taking into account the standard of the refurb

0:32:170:32:21

and the close proximity to the Central Line station.

0:32:210:32:24

I think the property should be marketed at about £475,000,

0:32:240:32:28

with an achievable price of 450, or just about that.

0:32:280:32:31

The agents noticed that with Hainault's growing popularity,

0:32:340:32:37

the property market is a bit unpredictable,

0:32:370:32:39

hence the disparity in valuations.

0:32:390:32:42

If Fatima and Mehreen were able to achieve that £450,000 figure,

0:32:420:32:47

well, that would give them a pre-tax profit of 80,000.

0:32:470:32:51

What do they make of the figures

0:32:510:32:53

and the possibility of a fabulous first-time profit?

0:32:530:32:57

At the lower guide price, it still does work for us, yes.

0:32:570:33:00

We're quite pleased with the result.

0:33:000:33:02

-We still make profit, but the more, the better.

-Exactly.

0:33:020:33:05

So, a successful first renovation for the ladies,

0:33:060:33:09

but how does the enjoyable job of being a property developer

0:33:090:33:13

balance with having the best job in the world,

0:33:130:33:15

being mums?

0:33:150:33:17

It's really easy to work it around your kids

0:33:200:33:22

and you can set your own timing, so we really enjoyed doing it together.

0:33:220:33:26

Definitely, yeah.

0:33:260:33:28

Folkestone on the Kent coast

0:33:320:33:34

was a popular seaside destination in the Victorian times

0:33:340:33:37

and the legacy of Victorian ingenuity

0:33:370:33:40

can still be enjoyed around here.

0:33:400:33:42

One of the best examples is Leas Lift,

0:33:420:33:44

built over 100 years ago in 1885 and is still working today.

0:33:440:33:49

# Built to last... #

0:33:490:33:56

Let's hope the property I'm here to see is of the same build.

0:33:580:34:01

It's a two-bed, mid-terrace house

0:34:010:34:04

with a guide price of £90,000-£95,000.

0:34:040:34:07

Wow.

0:34:100:34:12

Look at all this hallway space. It's a surprise to see the stairs

0:34:120:34:15

so far away from the front door.

0:34:150:34:17

I was expecting the stairs to be sort of here,

0:34:170:34:19

but you've got this sense of space in the hallway which is really nice.

0:34:190:34:23

A decent-sized front room there, old-fashioned, retro gas fire there.

0:34:230:34:28

Down the hallway to the second room,

0:34:280:34:32

down here, another gas fire there, a retro one again.

0:34:320:34:34

I'd possibly get rid of those

0:34:340:34:36

and down here, everything seems to get a little bit tighter.

0:34:360:34:40

As you can see, it's not a standard-sized doorway.

0:34:400:34:44

And the ceiling as well, as I come in,

0:34:440:34:46

seems to be just inches off the top of my head.

0:34:460:34:49

Look at this, this is definitely retro.

0:34:490:34:51

You've got old-fashioned milk bottles as well.

0:34:510:34:54

This really does take me back to

0:34:540:34:55

when I was a young boy living in Leicester.

0:34:550:34:58

We had a kitchen like this.

0:34:580:35:00

Take this all out, you've got a decent-sized floor space here.

0:35:000:35:04

Brand-new kitchen in here.

0:35:040:35:06

I think it'd be pretty cool.

0:35:060:35:07

You don't have to have the big, thick working surfaces.

0:35:070:35:10

You can make them a bit smaller, shallow it up a little bit,

0:35:100:35:13

a bit more floor space

0:35:130:35:14

and I'm pretty sure, above here,

0:35:140:35:17

you might be able to get two or three more inches of height,

0:35:170:35:20

therefore you can take that light up,

0:35:200:35:22

so when you have got friends coming round who are 6'2",

0:35:220:35:25

they're not going to be hitting their head.

0:35:250:35:27

There's no doubt about it - this kitchen has to be kicked into touch.

0:35:280:35:32

# Hit me, hit me

0:35:320:35:35

# Hit me...! #

0:35:350:35:36

As does the rest of downstairs,

0:35:380:35:40

but the central heating looks relatively new

0:35:400:35:43

and I do like those old doors.

0:35:430:35:45

Cupboard space is always handy too.

0:35:450:35:47

# Hit me, hit me... #

0:35:490:35:50

OK, off upstairs, then.

0:35:500:35:52

Look at the size of that bathroom.

0:35:520:35:54

That's one of the biggest bathrooms I've seen in a mid-terrace house.

0:35:540:35:58

That is a lovely size.

0:35:580:35:59

Up here to two bedrooms.

0:35:590:36:03

The back bedroom here of a decent size,

0:36:030:36:05

looks on to the back of the back garden.

0:36:050:36:08

In here, look at this room. This is a front bedroom.

0:36:080:36:11

Looks like it's had new double glazing in it.

0:36:110:36:13

Nice high ceiling up here as well. Erm...

0:36:130:36:17

Bit of cloakroom space in there.

0:36:170:36:19

Behind here, I'm assuming this is...

0:36:190:36:21

That's a beautiful fireplace they've got behind here

0:36:230:36:25

and they've decided to board it up.

0:36:250:36:27

Get that on show. I like it, I really do.

0:36:270:36:31

# Oh, don't hide it away... #

0:36:310:36:35

Same story in the second bedroom.

0:36:360:36:38

If you have features, you should show them off, not hide them.

0:36:380:36:41

Now, I'm going to talk about proportions

0:36:410:36:43

and that's what's wrong here.

0:36:430:36:46

I know I said the bathroom is one of the biggest I'd seen,

0:36:460:36:48

but now I've seen the upstairs,

0:36:480:36:50

it seems out of place with the rest of the house.

0:36:500:36:53

It's a bit of a waste.

0:36:530:36:54

Unless you're going to stick a fabulous walk-in shower here,

0:36:540:36:57

it doesn't work.

0:36:570:36:58

But a little bit of a tip - if you are viewing a house

0:37:000:37:03

and you're upstairs, always look out the window.

0:37:030:37:05

See if you can see the roof, the guttering.

0:37:050:37:07

You get a good look at the back garden,

0:37:070:37:09

sometimes the front garden as well.

0:37:090:37:10

In this particular case,

0:37:100:37:12

this roof seems to have a bit of a bow in it, so I'd been inclined

0:37:120:37:16

to maybe take the tiles off, reseal it so there's no chance of a leak

0:37:160:37:20

and reclaim the tiles.

0:37:200:37:21

You won't have to have the expense of getting new tiles.

0:37:210:37:24

They all look relatively fine.

0:37:240:37:25

Put them back on and you know that's not going to be a problem.

0:37:250:37:29

So the roof is something definitely to add to the to-do list.

0:37:290:37:32

Another thing I can see from up here

0:37:320:37:34

is what looks like a rather neglected garden.

0:37:340:37:37

Out in the back garden,

0:37:400:37:41

back yard, it seems to have been taken over by all this greenery.

0:37:410:37:45

But judging by the width of the walls here,

0:37:450:37:49

you can just see that side.

0:37:490:37:50

It's a decent width of garden.

0:37:500:37:53

Get rid of all this greenery, tidy it up,

0:37:530:37:56

put some slabs down, just get it all levelled out

0:37:560:37:59

or even a bit of false grass,

0:37:590:38:01

which would be good for the kids to play football on, of course.

0:38:010:38:04

I think it could be a nice-sized back garden for them

0:38:040:38:06

and behind me here, an outside toilet,

0:38:060:38:09

which I'd be inclined to get rid of.

0:38:090:38:11

This piping here goes down into the outside toilet

0:38:110:38:15

and then straight into the guttering.

0:38:150:38:17

Leave that there, that seems sound.

0:38:170:38:19

Get rid of this, tidy everything up

0:38:190:38:22

and I think you'll have a decent-sized back garden.

0:38:220:38:25

I'm starting to feel that perhaps there really is a great house here,

0:38:250:38:28

but it just needs to be uncovered.

0:38:280:38:30

What does a local estate agent think?

0:38:340:38:36

The layout of the property is actually very good.

0:38:400:38:43

It suits modern conveniences with the bathroom upstairs.

0:38:430:38:46

Two reception rooms downstairs also allow for a versatility,

0:38:460:38:51

so if you'd like to use one of them as a bedroom,

0:38:510:38:53

then this could quite easily be a three-bedroom terraced property.

0:38:530:38:57

OK, lots of choices, but what about the financial options

0:38:570:39:01

on a house that was guided at auction for £90,000-£95,000?

0:39:010:39:05

How much could you sell it for if it was refurbished as a two-bed?

0:39:050:39:08

Once refurbished, if we were to resell the property,

0:39:100:39:13

we'd expect to achieve in the region of £125,000.

0:39:130:39:17

On the rental market,

0:39:190:39:20

the property should achieve in the region of £625 per calendar month.

0:39:200:39:26

Would the numbers alter much if you changed one of the reception rooms

0:39:260:39:30

into a bedroom to make it a three-bedroom house?

0:39:300:39:32

If this property was set up as a three-bedroom property,

0:39:320:39:36

I would expect to achieve the same sort of figures

0:39:360:39:39

as you would if it were a two-bed.

0:39:390:39:41

However, on the rental market,

0:39:410:39:42

you'd be looking to achieve possibly £675 per calendar month.

0:39:420:39:47

It's really hard for me not to love this property.

0:39:520:39:54

I've been reminiscing as I've been walking around.

0:39:540:39:56

The upstairs bathroom at the back,

0:39:560:39:59

the little kitchen there, we'd all be diving in that kitchen

0:39:590:40:01

trying to make our own breakfasts, get your own space.

0:40:010:40:04

Loads of happy memories for me back in Leicester,

0:40:040:40:06

but let's see who wanted to build their own happy memories

0:40:060:40:09

when it went under the hammer.

0:40:090:40:11

So what are we going to say on this one? 90,000, do I see?

0:40:140:40:17

90,000?

0:40:170:40:18

Give me 85, then. It's here to be sold.

0:40:180:40:21

85 unobliged. 85 I have.

0:40:210:40:24

87 now do I say?

0:40:240:40:25

87 do I say?

0:40:250:40:27

87 bid I have. 87 bid. At 90. At 90.

0:40:270:40:31

At 90, and 2. 92. 92? And 5. And 7.

0:40:310:40:36

97.

0:40:360:40:37

97 in the green.

0:40:370:40:39

Up to 100. 98, if you like.

0:40:390:40:42

Is that a bid? 98, I've got. 99 if you like.

0:40:420:40:44

99, fill it up to 100.

0:40:440:40:46

No, definitely not. I know when he says that.

0:40:460:40:49

99 I've got, 100 I'm looking for.

0:40:490:40:50

Are we all done at £99,000 for the first time to the lady in green?

0:40:500:40:55

99 for the second time.

0:40:550:40:57

Third and final time at 99,000.

0:40:570:41:00

Yours at 99.

0:41:000:41:02

The hammer fell on that bid of £99,000,

0:41:040:41:07

made by Anataya, who hails from East Sussex.

0:41:070:41:09

She came along with her two Pomeranians, Neo and Fliss,

0:41:120:41:15

to tell us all about her second development property.

0:41:150:41:17

So, Anataya, nice to meet you, firstly,

0:41:200:41:22

and congratulations on your property.

0:41:220:41:24

Tell me why you went for this kind of property in the auction.

0:41:240:41:28

It's the location. Nice and quiet and the road is quite big,

0:41:280:41:33

to park the car and things like that.

0:41:330:41:35

I know you're not from this area at all,

0:41:350:41:37

so what made you buy here in Folkestone?

0:41:370:41:39

I have been through Folkestone quite a few times,

0:41:390:41:43

so I know the area.

0:41:430:41:45

So, one day you just thought,

0:41:450:41:46

-"I like the area, I'll look for a house in this area"?

-Yeah.

0:41:460:41:51

Anataya may like the area,

0:41:510:41:53

but she'll have an hour and a half drive to get here,

0:41:530:41:55

so she's pinning her hopes on having a local builder in place

0:41:550:41:58

to do all the work.

0:41:580:42:00

OK, what do you intend to do with the property?

0:42:010:42:03

What have you got in your mind?

0:42:030:42:05

-Well, I have to change the kitchen.

-Yep.

0:42:050:42:08

And bathroom.

0:42:080:42:09

I intend to put a shower in the bathroom.

0:42:090:42:12

A new floor and decorating.

0:42:120:42:16

Upstairs, there's two beautiful fireplaces

0:42:160:42:19

-which have been boarded up.

-Yes, I noticed that.

0:42:190:42:22

I want to make it up

0:42:220:42:25

or bring it downstairs, I'm not sure yet.

0:42:250:42:28

OK, so you might even take the fireplace out

0:42:280:42:30

and put it there for decoration? It's very pretty, isn't it?

0:42:300:42:33

Yes, I have to consult with the contractor.

0:42:330:42:38

-Do you have a budget for all the work?

-I believe under 12,000.

0:42:380:42:43

-£12,000 to get all the work done and complete?

-Yeah.

0:42:430:42:47

And along with that £12,000 budget,

0:42:470:42:49

she hopes to complete the refurbishment in just months.

0:42:490:42:52

Are you winning?

0:42:540:42:55

-Are you winning at the moment?

-Quite often winning.

-Good.

0:42:550:42:59

-Investing in all different things, different markets.

-OK.

0:42:590:43:03

So Anataya plays the stocks and shares market

0:43:030:43:06

and the property market.

0:43:060:43:07

Clearly, she doesn't mind taking a risk or two,

0:43:070:43:10

which might explain her hobby.

0:43:100:43:12

Anataya is a qualified pilot.

0:43:120:43:13

I do flying.

0:43:160:43:19

-You do flying?

-Yes.

-And how long have you been doing that?

0:43:190:43:22

For 20 years now.

0:43:220:43:24

-20 years?

-I've got 300 hours.

0:43:240:43:27

-300 hours of flying?

-Yes.

-Wow.

0:43:270:43:31

It's a diverse thing to do, very diverse.

0:43:310:43:33

The property thing, do you want to do more of that?

0:43:330:43:35

If I sell this one, I might go for another one.

0:43:350:43:37

-Ah!

-But I'm not sure.

0:43:370:43:39

So you might be starting to build a few houses and a bit of a portfolio?

0:43:390:43:43

-Yes.

-Listen, well done, I hope it goes well for you.

0:43:430:43:47

-Congratulations.

-Thank you.

0:43:470:43:49

So Anataya seems to have this house completely under control,

0:43:500:43:54

but will she have a rough ride during refurbishment

0:43:540:43:56

or will she be flying high with the results?

0:43:560:43:59

You can find out later on in the programme.

0:43:590:44:01

We've seen how one of our buyers got on

0:44:040:44:06

after bidding in the auction room.

0:44:060:44:07

What about the other two? Did they see the fruits of their labours?

0:44:070:44:10

I can't wait to find out.

0:44:100:44:12

Earlier in the show, I was in Stoke.

0:44:150:44:17

I was observing one of the rarer but much-loved species

0:44:170:44:21

of the British housing market, the lesser spotted bungalow.

0:44:210:44:26

Making up only 10% of housing stock,

0:44:260:44:28

they're a much sought-after breed

0:44:280:44:30

and this one was guided at £49,000 plus,

0:44:300:44:34

although its plumage had seen better days.

0:44:340:44:37

You can tell it's going to need a bit of modernisation, but, you know,

0:44:370:44:41

you've got to see through its current condition

0:44:410:44:43

to what it might become. Just even by changing the carpets

0:44:430:44:47

and either plastering or putting new wallpaper on the walls,

0:44:470:44:50

what a change you would make.

0:44:500:44:52

And ready to make the changes were John and Chris.

0:44:550:44:57

They planned to make their £66,000 purchase

0:44:570:45:01

into a home for John's parents.

0:45:010:45:03

So have they seen it in its current state?

0:45:040:45:07

-Yeah!

-THEY CHUCKLE

0:45:070:45:08

What did they say when they first saw it?

0:45:080:45:11

I think they were having second thoughts, but I talked them into...

0:45:110:45:15

They think we're going to do a good job.

0:45:150:45:17

-# I promised I'd be good...

-#

0:45:170:45:20

So John and Chris were promising to do a good job for John's parents.

0:45:200:45:25

It's a good thing that John had an ideal skill set.

0:45:250:45:28

He's a joiner by trade.

0:45:280:45:29

We came back 14 months later to find out how John and Chris had got on.

0:45:310:45:34

And, judging by the outside, things have gone very well.

0:45:360:45:39

A new door, some work on the porch

0:45:390:45:42

and landscaping in the garden has really lifted the front,

0:45:420:45:46

but does the interior live up to the exterior's promise?

0:45:460:45:50

# I promised I'd be good

0:45:500:45:52

-# I promised I'd be good...

-#

0:46:050:46:07

Wow, a real transformation throughout the property.

0:46:080:46:12

This new kitchen is exactly what the space needed.

0:46:120:46:15

We ripped out the old kitchen and we put a new kitchen into the area.

0:46:170:46:23

We've retiled and we've had a glass splashback fitted.

0:46:230:46:27

Out the back of the kitchen, the conservatory is now complete

0:46:290:46:33

and looking fantastic.

0:46:330:46:34

We decided to keep the conservatory in the end,

0:46:370:46:40

but replaced all the falling-in roof

0:46:400:46:43

and dodgy windows with a new roof, new windows,

0:46:430:46:46

put French doors out to the bedroom, leading into the conservatory.

0:46:460:46:51

A nice laminate floor and then doors leading to outside.

0:46:510:46:55

Outside, we've put some fake grass down and paved the rest of it,

0:46:550:47:00

just for low maintenance and we're pleased with it, yeah.

0:47:000:47:03

# I promised I'd be good... #

0:47:030:47:06

As promised, the patio doors

0:47:060:47:08

leading from the bedroom into the conservatory

0:47:080:47:10

and then out onto the garden makes the layout flow much better.

0:47:100:47:14

They've also improved the use of space by modifying the bathroom.

0:47:140:47:19

# I promised I'd be good... #

0:47:190:47:21

Basically, we got rid of

0:47:210:47:22

this small room that was housing the back boiler

0:47:220:47:26

that's not needed any more,

0:47:260:47:27

because we've got the central heating system fitted.

0:47:270:47:30

Took this wall down,

0:47:300:47:31

squared off the bathroom so it gives a lot more room,

0:47:310:47:34

got rid of the bath, put a double shower in,

0:47:340:47:37

and replaced the bedroom door where it suits it better

0:47:370:47:41

and, yeah, really pleased with it.

0:47:410:47:43

And look at the living room.

0:47:450:47:47

See what I mean about how new decor can really lift a place?

0:47:470:47:51

We've had it fully replastered and we've had new carpets fitted.

0:47:530:47:58

We've ripped out the back boiler,

0:47:580:48:00

the fire, and we've replaced it with an electric fire.

0:48:000:48:05

Their original budget was £16,000 and they stuck to that number.

0:48:060:48:11

John doing most of the work

0:48:110:48:13

with some help from family and friends has saved them money,

0:48:130:48:16

but they thought it would take eight months. It actually took 14.

0:48:160:48:21

The biggest challenge I think has been to keep it on time,

0:48:210:48:24

because John's done most of the work.

0:48:240:48:26

As soon as we started, work got really busy

0:48:260:48:30

and, obviously, that takes priority,

0:48:300:48:32

cos that enables us to do projects like this.

0:48:320:48:36

And this project is complete, ready for John's parents,

0:48:360:48:39

Ken and Rose, to move into.

0:48:390:48:41

But let's just put a handbrake on the removal vans for a moment

0:48:450:48:49

and ask two local estate agents to give us

0:48:490:48:51

an appraisal of their renovated home,

0:48:510:48:54

starting with the agent who saw it before the renovation.

0:48:540:48:57

This is my second visit to the property and there really has been

0:48:570:49:00

a transformation, considerably internally, with the property.

0:49:000:49:04

Good quality kitchen, bathroom and it's really ready to move into.

0:49:040:49:08

The selling point is that bungalows are always in demand.

0:49:090:49:12

It's going to be an affordable price range,

0:49:120:49:15

so I don't think there's going to be any issues

0:49:150:49:17

in reselling this property.

0:49:170:49:19

This is my first time inside the property.

0:49:190:49:21

I'm particularly impressed with the level of finish to the property,

0:49:210:49:24

especially in the garden and the kitchen and bathroom.

0:49:240:49:27

I think that the current owners have done the best that they can

0:49:270:49:29

with the property, as it is a smaller property,

0:49:290:49:33

but I think that the layout is in fitting

0:49:330:49:36

and in keeping with the style.

0:49:360:49:38

Chris and John's total spend to date is £82,000.

0:49:400:49:43

The agents thought the house could attract

0:49:430:49:46

a rental figure of £475-£500 per calendar month,

0:49:460:49:50

giving them just over a 7% yield.

0:49:500:49:53

But what about sales?

0:49:530:49:55

If we were to sell the property,

0:49:570:49:58

I think it will achieve between £90,000-£95,000.

0:49:580:50:02

I would place this property on the open market

0:50:020:50:05

in the region of £100,000.

0:50:050:50:06

A bit more than we expected, but it's not a short-term thing,

0:50:060:50:10

it's a longer-term investment for us

0:50:100:50:12

and somewhere nice for my parents to live.

0:50:120:50:16

Yes, and they've created a beautiful home for John's parents.

0:50:160:50:19

That's what's important,

0:50:190:50:21

although a pre-tax profit of £18,000 is good news.

0:50:210:50:26

Always pleasing to see children

0:50:260:50:28

looking after parents in later years,

0:50:280:50:30

something I'm sure the couple would be keen

0:50:300:50:32

to remind their son James about many years from now.

0:50:320:50:35

That is, after he's finished trying to become the next Dion Dublin.

0:50:350:50:39

What's next for the couple?

0:50:410:50:43

We've got a bit of work to do on our house

0:50:460:50:48

-and a bit of catching up with the little 'un, haven't we?

-Yeah.

0:50:480:50:52

We've just bought a camper van,

0:50:520:50:54

so we're going to spend some family time together.

0:50:540:50:57

Folkestone in Kent is where I was earlier in the show

0:51:030:51:06

and not far from the idyllic seaside was this two-bed mid-terrace

0:51:060:51:10

guided at £90,000-£95,000.

0:51:100:51:13

The guide price may have been attractive, but, sadly,

0:51:140:51:17

not as low as the downstairs ceiling.

0:51:170:51:19

And, down here, everything seems to get a little bit tighter.

0:51:190:51:23

As you can see, it's not a standard-sized doorway.

0:51:230:51:27

The ceiling, as well, as I come in,

0:51:270:51:30

seems to be just inches off the top of my head.

0:51:300:51:33

All right, I'm a bit taller than most,

0:51:330:51:35

but that cramped headroom was only emphasised by the space upstairs.

0:51:350:51:38

An oversized bathroom...

0:51:400:51:42

..nice-sized bedrooms...

0:51:440:51:46

each with these hidden gem fireplaces.

0:51:460:51:48

Someone who had lofty ambitious was Anataya,

0:51:500:51:53

who bought the house for £99,000 as her second property development.

0:51:530:51:57

I said lofty ambitious, or was her head slightly stuck in the clouds?

0:51:570:52:02

I do flying.

0:52:020:52:05

-You do flying?

-Yes.

-How long have you been doing that?

0:52:050:52:08

For 20 years now.

0:52:080:52:10

-20 years?

-I've got 300 hours.

0:52:100:52:13

-300 hours of flying?

-Yep.

0:52:130:52:15

Eight months on, and Anataya gave us clearance to land

0:52:160:52:19

back at the property and have a look around.

0:52:190:52:21

Well, if this is Anataya's second property development,

0:52:450:52:48

she's found her feet quickly. This is looking great.

0:52:480:52:51

What has she done, though?

0:52:520:52:54

Since you saw the house,

0:52:540:52:56

we have been changing all the rooms, replastering.

0:52:560:53:01

We put in a new bathroom, a new kitchen,

0:53:010:53:05

and in the dining room, we changed it into a bigger room.

0:53:050:53:09

Take out a wall.

0:53:090:53:11

Taking out the living room wall has really opened up that space,

0:53:110:53:15

but, for me, it's that new bathroom

0:53:150:53:17

and the new kitchen that have really lifted this house.

0:53:170:53:20

But there were some hitches along the way.

0:53:200:53:24

The biggest problem is the bathroom,

0:53:240:53:27

because in the side is a crack and damp,

0:53:270:53:32

so I had to do a lot of work up there.

0:53:320:53:35

That's the biggest problem.

0:53:350:53:38

You know, I think Anataya and I

0:53:380:53:40

might have to disagree on what was the biggest problem.

0:53:400:53:43

I love what she's done to the kitchen,

0:53:430:53:45

but it turned into a renovation disaster.

0:53:450:53:47

The new kitchen, it was quite low, so we put in a higher bit,

0:53:490:53:54

a few inches higher.

0:53:540:53:56

I believe the pressure made a pipe burst

0:53:560:54:02

and then caused a leak.

0:54:020:54:04

I was here, I was upstairs about 3:00 or 4:00.

0:54:040:54:10

It probably took a couple of hours.

0:54:100:54:13

I woke up about 6:30, 7:00,

0:54:130:54:16

I noticed that there's a lot of water, steaming hot water.

0:54:160:54:21

It was like mist in the room.

0:54:210:54:24

So, a burst pipe in the ceiling flooded the new kitchen

0:54:250:54:28

and meant it all had to be replaced

0:54:280:54:31

and that wasn't the end of Anataya's woes.

0:54:310:54:33

In fact, she had to change the contractor three times

0:54:330:54:36

to get this house completed,

0:54:360:54:38

but there was always someone there on hand

0:54:380:54:40

to do all the odd jobs in the house.

0:54:400:54:43

Herself.

0:54:430:54:44

I usually stay here, sleep here and do some other jobs.

0:54:470:54:53

Sometimes, I couldn't wait for the builder to come,

0:54:530:54:57

I did it, like, for example, painting - I just did it for myself.

0:54:570:55:01

So Anataya rolled up her sleeves and got stuck in.

0:55:010:55:04

Staying on site saved her an hour and a half drive from her own house,

0:55:040:55:08

but didn't save her much,

0:55:080:55:10

as burst pipes were one of the reasons her budget soared to £17,000.

0:55:100:55:15

Changing contractors three times also pushed her timescale

0:55:150:55:19

from three months to eight months, but has she enjoyed the experience?

0:55:190:55:23

I'm really pleased when I finished it. It seems over.

0:55:270:55:30

Although I have to wait for such a long time,

0:55:310:55:36

it seemed never finished.

0:55:360:55:38

Despite all the setbacks, Anataya seems to be well grounded.

0:55:390:55:43

No time for flying.

0:55:430:55:44

I have been so busy,

0:55:440:55:45

I haven't got time to fly or look at my book, really.

0:55:450:55:49

I haven't watched TV, either.

0:55:490:55:52

Anataya has had limited time to relax,

0:55:540:55:56

so I'll bet Neo and Fliss will be looking forward to more time

0:55:560:55:59

for...(walkies)...

0:55:590:56:01

when this development is over.

0:56:010:56:03

Now it's time to find out what two local estate agents thought.

0:56:050:56:08

Has Anataya's hard work paid off?

0:56:080:56:10

The property here's been nicely presented,

0:56:120:56:15

it's nicely converted into a more modern, contemporary feel.

0:56:150:56:19

A few little snagging issues, but, apart from that, I like it.

0:56:190:56:23

They've done a very nice job of the kitchen

0:56:230:56:25

and they've done an excellent job of the bathroom.

0:56:250:56:28

I think they've finished it off very sympathetic

0:56:280:56:31

for a two-bedroom cottage.

0:56:310:56:33

Anataya's undecided about what she wants to do with this property,

0:56:330:56:36

but she's leaning towards selling,

0:56:360:56:38

so can she make a profit on her total investment of £116,000?

0:56:380:56:43

I think if this went on to the open market for sale,

0:56:440:56:48

I would recommend advertising it for about 135,000

0:56:480:56:51

and accept anything over 125,000.

0:56:510:56:54

If she wanted to rent it, this would rent very nicely

0:56:540:56:57

and I would say about £650 per calendar month.

0:56:570:57:00

I think this probably could be

0:57:000:57:02

put on the market for in the region of £140,000.

0:57:020:57:04

Rental market - this property would achieve

0:57:040:57:07

in the region of £675 per calendar month.

0:57:070:57:10

So, at an average figure of £137,500 for resale,

0:57:120:57:16

or 650 quid per calendar month,

0:57:160:57:19

Anataya could choose between a 21,500 grand pre-tax profit,

0:57:190:57:23

or a 7% yield.

0:57:230:57:26

Is she happy with those figures, though?

0:57:260:57:28

A little bit low, I think, your agents' estimate.

0:57:310:57:37

140, I would prefer that.

0:57:370:57:41

Sit, sit.

0:57:410:57:42

Anataya came through a lot of turbulence with a decent profit.

0:57:420:57:46

Is it time to get back in the air now?

0:57:460:57:48

It depends. If I got time, I would like to go and fly,

0:57:500:57:55

but I would like to earn some money first.

0:57:550:57:58

Yeah.

0:57:580:57:59

Well, doing up property can be a huge learning experience,

0:58:030:58:06

even for those, like us, who've done it loads of times before.

0:58:060:58:09

Yes, but we are here to help

0:58:090:58:11

and hopefully make it that little bit easier for you.

0:58:110:58:13

Yeah, so join us next time

0:58:130:58:14

for more highs and lows on Homes Under The Hammer.

0:58:140:58:16

-Goodbye.

-Goodbye.

-Goodbye.

0:58:160:58:18

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