0:00:02 > 0:00:04It's amazing how property developing can start just as a hobby
0:00:04 > 0:00:07and can end up being a full-blown career.
0:00:07 > 0:00:10Being your own boss brings with it loads of advantages
0:00:10 > 0:00:11and it's great fun.
0:00:11 > 0:00:14However, it can bring risks.
0:00:14 > 0:00:17Yes. So, if you are thinking of dabbling, where do you start?
0:00:17 > 0:00:19Why not buy under the hammer?
0:00:44 > 0:00:46I know we say this a lot
0:00:46 > 0:00:48but doing your research is the best way to avoid
0:00:48 > 0:00:52unwelcome surprises, especially when you're bidding in an auction room.
0:00:52 > 0:00:55So, did today's buyers follow our advice?
0:00:55 > 0:00:57Let's see what they bought.
0:00:58 > 0:01:00Today, it's the terrible twos.
0:01:00 > 0:01:03Why has this two-bedroom semi in Ilkeston, Derbyshire,
0:01:03 > 0:01:05got two front doors?
0:01:05 > 0:01:07No idea.
0:01:08 > 0:01:12This two-bed cottage in Margate, Kent, is filled to the brim.
0:01:12 > 0:01:15Stuff everywhere, but not a bad kitchen.
0:01:15 > 0:01:18It does have that, sort of, cottagey feel.
0:01:18 > 0:01:21And this one-bed flat in Telford, Shropshire,
0:01:21 > 0:01:24has too many stairs for some, including...
0:01:24 > 0:01:28ex-professional footballers, like myself, that have got dodgy knees.
0:01:28 > 0:01:31All of these properties have been sold at auction.
0:01:31 > 0:01:34We'll find out who bought them and what they paid for them
0:01:34 > 0:01:36when they went under the hammer.
0:01:36 > 0:01:38You bought it, madam. Well done.
0:01:41 > 0:01:44Close to Derby and Nottingham, the market town of Ilkeston
0:01:44 > 0:01:48used to have coalmining and ironworks at its heart.
0:01:48 > 0:01:51In fact, right now, you're probably only a few hundred yards away
0:01:51 > 0:01:55from a manhole cover made here and, like towns of its ilk,
0:01:55 > 0:01:59Ilkeston's former council estates form a significant part
0:01:59 > 0:02:01of its housing stock.
0:02:01 > 0:02:04So, five minutes from the centre of Ilkeston,
0:02:04 > 0:02:07is where I find myself.
0:02:07 > 0:02:11What does £55,000 buy you around these parts?
0:02:11 > 0:02:14Well, that was the guide price for this place.
0:02:14 > 0:02:16It's a mid-terraced two-bedroom.
0:02:16 > 0:02:17Let's have a look.
0:02:21 > 0:02:23OK. So, what have we got?
0:02:23 > 0:02:25A little entrance area here.
0:02:26 > 0:02:30Front to back living room, although I have to say, first glance,
0:02:30 > 0:02:33it doesn't look like it's very wide.
0:02:33 > 0:02:34Hmm. Very strange.
0:02:34 > 0:02:37Stairs up to your bedrooms there
0:02:37 > 0:02:40and then through into your kitchen.
0:02:40 > 0:02:46Surprisingly, the kitchen feels disproportionately big.
0:02:46 > 0:02:48It's actually quite a nice space.
0:02:48 > 0:02:51You've got a cupboard here... Oh! Well, it's not a cupboard.
0:02:51 > 0:02:54Well, I didn't expect that.
0:02:54 > 0:02:56It's another door. Another front door.
0:02:56 > 0:02:59What was the design criteria here, do you think?
0:03:00 > 0:03:02No idea.
0:03:02 > 0:03:04One thing for sure, though,
0:03:04 > 0:03:06I think that wall there needs to be taken down.
0:03:06 > 0:03:10Obviously, get a structural engineer to check that it's not supporting.
0:03:10 > 0:03:13Take that down, open the kitchen up even more
0:03:13 > 0:03:14to create a really nice space.
0:03:14 > 0:03:17But there is still this whole issue with the fact that...
0:03:17 > 0:03:21Oh, I don't know... One, two, three, four,...
0:03:21 > 0:03:25It must only be about four-and-a-half metres wide.
0:03:25 > 0:03:26Wow!
0:03:26 > 0:03:28Onwards and upwards.
0:03:31 > 0:03:34I suppose you might say the kitchen's OK,
0:03:34 > 0:03:36if you like a touch of the blues.
0:03:36 > 0:03:38BLUES GUITAR
0:03:40 > 0:03:45# You'd better come on in my kitchen
0:03:46 > 0:03:49# Well, it's bound to be raining outdoors... #
0:03:49 > 0:03:50Yeah!
0:03:50 > 0:03:54Upstairs, the narrow width of the house is less noticeable.
0:03:54 > 0:03:58So, upstairs, and two pretty decent-sized bedrooms,
0:03:58 > 0:04:02a bathroom and loo that has been converted for disabled use
0:04:02 > 0:04:04and, then, into this bedroom here
0:04:04 > 0:04:08and...the only real big negative I've found so far with the property.
0:04:08 > 0:04:11Look at this. On this wall.
0:04:11 > 0:04:15Lots of signs of damp. Penetrating damp, obviously.
0:04:15 > 0:04:18It doesn't take a rocket scientist to work out it's coming down.
0:04:18 > 0:04:20It's a long way for it to come up.
0:04:20 > 0:04:24And it's probably something to do with a few roof tiles
0:04:24 > 0:04:26that have slipped. Maybe a gutter that's leaked.
0:04:26 > 0:04:29What is a bit worrying is that it has actually come through
0:04:29 > 0:04:32where there should be a cavity wall.
0:04:32 > 0:04:35So, definitely, get in the loft, investigate that.
0:04:35 > 0:04:38Get outside. Get somebody to check it out
0:04:38 > 0:04:41and sort that out sooner rather than later.
0:04:41 > 0:04:43# Sooner or later
0:04:43 > 0:04:46# You're gonna have to stand up tall
0:04:47 > 0:04:49# Sooner or later
0:04:49 > 0:04:51# When your back's against that wall... #
0:04:53 > 0:04:56The basic function of a cavity wall's air space
0:04:56 > 0:04:59is to keep water and moisture away from the inner wall.
0:04:59 > 0:05:01A porous outer wall
0:05:01 > 0:05:02or, as I said, roof problems
0:05:02 > 0:05:05are the most likely causes here.
0:05:05 > 0:05:07But what the house lacks in damp-proofing,
0:05:07 > 0:05:10it makes up for in the front door department.
0:05:10 > 0:05:14It has a 100% increase in that category
0:05:14 > 0:05:18but I am glad to report it's only got one back door.
0:05:23 > 0:05:26So, out the back of the property, I wonder if we can
0:05:26 > 0:05:31do anything about that feeling of slight...lack of width, basically.
0:05:31 > 0:05:35I guess, you could contemplate some kind of an extension.
0:05:35 > 0:05:39Next door certainly seems to be slightly deeper.
0:05:39 > 0:05:42You are going to have potential issues
0:05:42 > 0:05:44with the fact that there's a window there.
0:05:44 > 0:05:46Next door haven't got anything going on.
0:05:46 > 0:05:49I don't know if that's a starter for ten, or not.
0:05:49 > 0:05:53But you have got a really nice surprise, which is this garden.
0:05:53 > 0:05:56Look at that! It goes on for absolutely ages.
0:05:56 > 0:05:59I'd like to see a slightly higher fence on either side
0:05:59 > 0:06:02to make it a bit more private, but all in all, it's an added bonus.
0:06:02 > 0:06:06I think, just think through about that whole extension issue,
0:06:06 > 0:06:11whether or not it'd be financially and planning approval-wise possible.
0:06:13 > 0:06:16We called in not just any local expert
0:06:16 > 0:06:19but the auctioneer who sold the house.
0:06:19 > 0:06:22He knows to use the left-hand front door.
0:06:22 > 0:06:25I'm interested to hear what he thinks about the house
0:06:25 > 0:06:26and that penetrating damp.
0:06:29 > 0:06:33Well, we're standing in a lovely kitchen with 1980s tiling.
0:06:33 > 0:06:35So the kitchen needs modernising.
0:06:35 > 0:06:37The bathroom has already been done,
0:06:37 > 0:06:41although it has become a wet room, effectively. It needs decorating.
0:06:41 > 0:06:43The heating system would appear to be good.
0:06:43 > 0:06:45The electrics, I think, are OK. It's double glazed,
0:06:45 > 0:06:49although possibly not up-to-date specification.
0:06:49 > 0:06:51There actually isn't a great deal to do.
0:06:51 > 0:06:52A lot of it is superficial.
0:06:52 > 0:06:55The only issue I'm aware of is some penetrating damp
0:06:55 > 0:06:57in one of the bedrooms upstairs
0:06:57 > 0:06:59and I think that's a guttering issue.
0:06:59 > 0:07:02Hey! Ha-ha! I said it was probably guttering, didn't I?
0:07:02 > 0:07:05What's the local market like?
0:07:05 > 0:07:07Erm, the local market's quite buoyant.
0:07:07 > 0:07:10There's always a demand for investment property.
0:07:10 > 0:07:13So, this property is bound to appeal to somebody
0:07:13 > 0:07:15who would buy it to rent it out.
0:07:15 > 0:07:18That's encouraging. With the guide price of £55,000,
0:07:18 > 0:07:21what would it be worth when modernised?
0:07:21 > 0:07:23Ultimately, its value would be
0:07:23 > 0:07:26something in the order of £80,000-£85,000.
0:07:26 > 0:07:30So there could be room for a decent profit if you want to resell
0:07:30 > 0:07:35and, given it's a good rental area, what could one expect there?
0:07:35 > 0:07:38Again, once renovated, it would have a rental value
0:07:38 > 0:07:41in the order of £475, £500 a calendar month.
0:07:41 > 0:07:43In that sort of area.
0:07:43 > 0:07:46So, pleasant location, pleasant little property.
0:07:46 > 0:07:48Nice little project for someone.
0:07:48 > 0:07:51Let's see who fancied taking it on when it went under the hammer.
0:07:51 > 0:07:54Lot 18. Closer to home.
0:07:54 > 0:07:59A two-bedroomed, PVC double glazing, gas centrally heated accommodation.
0:07:59 > 0:08:03A very sensible guide price of 55-plus, designed to sell it.
0:08:03 > 0:08:05Start me at 55. 55?
0:08:05 > 0:08:0654? 52?
0:08:06 > 0:08:09Bid me where you like. 52,000.
0:08:09 > 0:08:11Thank you.
0:08:11 > 0:08:15At £52,000? 53 in front of me. 53 is bid. 54 on the left.
0:08:15 > 0:08:1855? 55, 56.
0:08:18 > 0:08:21Once started, the bidding climbs rapidly.
0:08:21 > 0:08:25We rejoin the action when we reach £67,000.
0:08:25 > 0:08:28At £67,000, for the first time.
0:08:28 > 0:08:29500.
0:08:29 > 0:08:3267.5, 68.
0:08:32 > 0:08:3468.
0:08:34 > 0:08:37500. It's going to go. 69.
0:08:39 > 0:08:43Is that it? £69,000. For the first time.
0:08:44 > 0:08:47Second time. 69.5.
0:08:48 > 0:08:50It's worth another shot.
0:08:50 > 0:08:54He's at the end of his leash. 70,000. Well, he may not be.
0:08:54 > 0:08:5770,000. 500, sir? Prove me wrong.
0:08:57 > 0:09:01£70,000. 500.
0:09:01 > 0:09:04At 70 and a half. Nothing more?
0:09:04 > 0:09:07£70,500. Once...
0:09:07 > 0:09:08twice...
0:09:08 > 0:09:10third time.
0:09:10 > 0:09:13Sold at 70 and half. Number 11, thank you.
0:09:14 > 0:09:19And it was first time lucky at auction for couple Trevor and Marie.
0:09:19 > 0:09:22I feel a tad responsible for their venture into property,
0:09:22 > 0:09:24as they say they got their inspiration
0:09:24 > 0:09:26from watching Homes Under The Hammer.
0:09:26 > 0:09:30So, I'm glad to meet them at their first auction purchase
0:09:30 > 0:09:34to find out their plans for their £70,500 house.
0:09:36 > 0:09:39- Marie, Trevor, good to meet you both.- Likewise.- Good to meet you.
0:09:39 > 0:09:43- Congratulations.- Thank you.- Tell me why you wanted to buy this house?
0:09:43 > 0:09:46We decided that that the 2% we're getting just isn't good enough.
0:09:46 > 0:09:49- Not enough.- So we're going to try... - Dip our toes in the water.
0:09:49 > 0:09:52Dip our toes there. Yes. This'll be...
0:09:52 > 0:09:54the first of many on our portfolio.
0:09:54 > 0:09:57- Brilliant. Good.- Hopefully. - So, why this area?
0:09:57 > 0:10:00- Are you local?- Tamworth.- OK. - We come from Tamworth.
0:10:00 > 0:10:02So, what tempted you to Ilkeston?
0:10:02 > 0:10:04Erm...
0:10:04 > 0:10:08I think the prices of the houses was cheaper here
0:10:08 > 0:10:10than they were where we are. So...
0:10:10 > 0:10:11And why this particular house?
0:10:11 > 0:10:15- The least amount of work. - For us to have to do, yeah.
0:10:15 > 0:10:18And...er, this would be the one to start off with.
0:10:18 > 0:10:20But, when we've got here today, we've realised
0:10:20 > 0:10:23- there's just a little bit more work than we thought.- Really?- Yeah.
0:10:23 > 0:10:26How come you missed it on first viewing?
0:10:26 > 0:10:29- Oh...- It's only a ten-minute window, wasn't it? Really.
0:10:29 > 0:10:32- It just seemed a bit quick. - So, what did you miss?
0:10:32 > 0:10:34I missed the size of the garden.
0:10:34 > 0:10:36It's quite good, isn't it?
0:10:36 > 0:10:39- Yeah. It's too big.- Oh.
0:10:39 > 0:10:42- There's a few damp issues. - Quite a bit of damp.
0:10:42 > 0:10:44We did see the damp, but we didn't realise there was...
0:10:44 > 0:10:47Probably got to be replastered, so we'll be going down the line of...
0:10:47 > 0:10:50I've got to go on a skimming course, I expect, to do that.
0:10:50 > 0:10:52- Oh, right.- Yeah.- Yes.
0:10:52 > 0:10:55Or we get a plasterer in, one or the other.
0:10:55 > 0:10:56Probably get a plasterer in,
0:10:56 > 0:10:59- because Marie actually wants it done yesterday, not today.- Aah!
0:10:59 > 0:11:02- Should be finished now. Is that right?- It is.- Yes.
0:11:02 > 0:11:04Right. Wow.
0:11:04 > 0:11:07So, apart from those small things you didn't see,
0:11:07 > 0:11:11- are you still quite happy?- Yes. - We're excited about it, yeah, yeah.
0:11:11 > 0:11:14- Yes, apprehensive but excited, as well.- Yeah.
0:11:14 > 0:11:16The auction must have been good fun.
0:11:16 > 0:11:20She was there to control me and she was going, "Go on. More, more, more."
0:11:20 > 0:11:24- Are you happy with what you paid? - Yeah, yeah. I think so.
0:11:24 > 0:11:27- Just about.- I don't think we'd have gone any more, would we?
0:11:27 > 0:11:29- No, that was the last. - That was the last bid.
0:11:29 > 0:11:32So, tell me, what you are planning to do to it, then?
0:11:34 > 0:11:37- We will have an electrician coming, won't we?- Yes. Checks.
0:11:37 > 0:11:41- Check all the wiring. Um... - The gas. For the gas.- The gas.
0:11:41 > 0:11:44- Then have a new bathroom, new kitchen.- Yeah.
0:11:44 > 0:11:46Just plaster and tidy up, really.
0:11:46 > 0:11:49We're going to have a look at the kitchen.
0:11:49 > 0:11:53Thinking, maybe, knocking that wall out, making the kitchen a bit bigger.
0:11:53 > 0:11:56We're going to have to have a structural engineer in,
0:11:56 > 0:11:58as we've seen you say on the TV before.
0:11:58 > 0:12:00Because it looks like it's going to fall down.
0:12:00 > 0:12:02If were going to knock it out.
0:12:02 > 0:12:04Check it first, then knock it down.
0:12:04 > 0:12:07Thinking of doing that. Hoping we can make that a bit bigger.
0:12:09 > 0:12:12Get rid of the rail out of the front. Tidy the gardens up.
0:12:12 > 0:12:15Hopefully, be able to rent it out when it's finished.
0:12:15 > 0:12:18- That's the plan, is it? You've bought it to rent.- Yeah.
0:12:18 > 0:12:22Well, Marie and Trevor seem to be giving all the right answers here.
0:12:22 > 0:12:26Their plan to rent ties in with what the auctioneer said.
0:12:26 > 0:12:27Trevor is approaching retirement,
0:12:27 > 0:12:30so he's hoping to do a lot of the manual work himself,
0:12:30 > 0:12:33but they will get in specialists when it comes to plumbing,
0:12:33 > 0:12:37electrics and knocking down walls, but all that will come at a cost.
0:12:38 > 0:12:40So, what's the budget for the work?
0:12:43 > 0:12:46- We say about five.- OK.- Pounds.
0:12:46 > 0:12:51If only. New kitchen, new bathroom. Plumbing work, skimming.
0:12:51 > 0:12:55- Mm-hm.- Electrics, if it needs it. Five grand, could be tight.
0:12:55 > 0:12:59Yes, going to be tight, but we are going to do it. We will do it.
0:12:59 > 0:13:01Who's going to do the work?
0:13:01 > 0:13:04I'm going to do some of the work, obviously.
0:13:04 > 0:13:07You know, I will mainly be taking the wallpaper off.
0:13:07 > 0:13:10And Marie will be mainly moving the heavy stuff out.
0:13:10 > 0:13:11THEY LAUGH
0:13:11 > 0:13:15- Because she is very well built. - Ah, well, that's useful.
0:13:15 > 0:13:17A bit of a workhorse. Excellent.
0:13:17 > 0:13:22- Get the whip out.- OK. And what's the timescale?
0:13:22 > 0:13:25Well, I was hoping something between six to eight weeks.
0:13:25 > 0:13:28- Marie was more going eight to 12 weeks.- I say 12 weeks.
0:13:28 > 0:13:29Listen, congratulations.
0:13:29 > 0:13:32- Thank you.- Good luck with it. Nice to meet you.
0:13:32 > 0:13:35- Thank you.- Thank you. - We've inspired you along the way.
0:13:35 > 0:13:37- Thank you.- Thank you.
0:13:37 > 0:13:40It's always nice when Homes Under The Hammer inspires people
0:13:40 > 0:13:44to enter the world of property, and that's certainly what we seem to
0:13:44 > 0:13:48have done with Trevor and Marie, and I think they've chosen well here.
0:13:48 > 0:13:51A few unexpected things they're going to have to do
0:13:51 > 0:13:52to sort the place out,
0:13:52 > 0:13:56but really, I don't think it's going to be too much of a challenge.
0:13:56 > 0:14:00You can find out how they get on...later in the show.
0:14:05 > 0:14:09Where might you find an art gallery celebrating landscape artist
0:14:09 > 0:14:10Turner's work,
0:14:10 > 0:14:15the UK's oldest rollercoaster ride and original pleasure park,
0:14:15 > 0:14:17and other seaside attractions?
0:14:17 > 0:14:20Yes, it's Margate, on the Kent coast.
0:14:20 > 0:14:23Just a leisurely five-minute walk from the beachfront
0:14:23 > 0:14:24is this leafy little hideaway.
0:14:24 > 0:14:28Now, one of the big bonuses is that you've got a cul-de-sac here.
0:14:28 > 0:14:31And you're not going to have loads of traffic roaring past.
0:14:31 > 0:14:34So what have we got? Well, it's a mid-terrace house up for auction.
0:14:34 > 0:14:38It's in need of modernisation and improvement. You can see that.
0:14:38 > 0:14:40And the guide price, £40,000-£50,000.
0:14:40 > 0:14:44Now, that suggests that there may be a fair amount of work
0:14:44 > 0:14:47needing to be done inside. Let's go and have a wander about.
0:14:50 > 0:14:55Oh, OK, house is slightly full up with lots of stuff.
0:14:55 > 0:14:59Yes, bags everywhere, so whoever takes this on is really going to need
0:14:59 > 0:15:02to think about getting all the stuff out so you can see beyond it all.
0:15:02 > 0:15:05You've got a good size lounge through there.
0:15:05 > 0:15:07The kitchen, again, stuff everywhere,
0:15:07 > 0:15:12but not a bad kitchen, it does have that sort of cottagey feel.
0:15:12 > 0:15:14There is a downstairs bathroom through there.
0:15:14 > 0:15:19So, with a lot of reorganising, tidying, cleaning,
0:15:19 > 0:15:23polishing and skips, could have quite a nice little cottage here.
0:15:23 > 0:15:25Well, I know they play bingo at the seaside,
0:15:25 > 0:15:30but this place takes the term "full house" to a whole new level.
0:15:33 > 0:15:36I keep telling myself not to look at all the stuff
0:15:36 > 0:15:38but to see through it into the space beyond.
0:15:41 > 0:15:44That's what makes the difference between a developer who can see
0:15:44 > 0:15:46the potential and a frightened novice.
0:15:53 > 0:15:55So I'm going to stay positive with this property,
0:15:55 > 0:15:59I'm looking through the disrepair and the peeling wallpaper, and
0:15:59 > 0:16:03I am looking at this really lovely little banister and staircase.
0:16:03 > 0:16:05I mean, it is really cottagey.
0:16:05 > 0:16:08How nice is that? I can imagine, painted and sanded back,
0:16:08 > 0:16:11this will be a really nice feature.
0:16:11 > 0:16:15But something I've got to show you. Look! Look at that jungle!
0:16:15 > 0:16:18That needs to be sorted out, quickly.
0:16:18 > 0:16:21So upstairs, we've got much of the similar sort of vein
0:16:21 > 0:16:25of what's going on downstairs, lots of stuff everywhere.
0:16:25 > 0:16:29But a good size room here, another one to the front of the property.
0:16:29 > 0:16:31And something I can really, really notice.
0:16:31 > 0:16:34There's lots of bubbling and peeling wallpaper.
0:16:34 > 0:16:37You can see right through to the rafters, daylight is coming in.
0:16:37 > 0:16:39I think there's been some water damage
0:16:39 > 0:16:41to the front of the property through there.
0:16:41 > 0:16:44So whoever takes this on really should have a good old look,
0:16:44 > 0:16:46up there in the roof.
0:16:48 > 0:16:51We asked a local estate agent to come and look past
0:16:51 > 0:16:54all the negatives in this house and give us his assessment.
0:16:56 > 0:16:59My view on the property is it needs quite a lot of work.
0:16:59 > 0:17:01It's going to be worth the while, though,
0:17:01 > 0:17:04because it is a nice little house in a reasonable area.
0:17:04 > 0:17:05Once it is renovated,
0:17:05 > 0:17:08I'm sure it will provide a very nice little home for someone.
0:17:08 > 0:17:13Given a full renovation, what's the demand for a property like this?
0:17:13 > 0:17:15Within the area, there's very good demand
0:17:15 > 0:17:17for this type of property, both as a purchase,
0:17:17 > 0:17:20as a buy-to-let investment, or for first-time buyers.
0:17:20 > 0:17:22Also for rental, there's very high demand.
0:17:24 > 0:17:27High demand usually translates into good valuations,
0:17:27 > 0:17:30and is that the case with this house, guided at £40,000 to 50,000?
0:17:32 > 0:17:35If the property were fully refurbished to a good standard,
0:17:35 > 0:17:39I think it could sell for about £120,000,
0:17:39 > 0:17:42or it could achieve in the region of £600-£625
0:17:42 > 0:17:45per calendar month rental.
0:17:45 > 0:17:48Well, the property inside leaves a lot to be desired.
0:17:48 > 0:17:51A lot of skips and a lot of clearing out needs to be done.
0:17:51 > 0:17:53I wouldn't blame you if you wanted to spend most of your time
0:17:53 > 0:17:56down at the beach looking at the skies, rather than in there,
0:17:56 > 0:18:00but with some imagination, a splash of paint and some budgets,
0:18:00 > 0:18:04I could see this place being turned into a masterpiece.
0:18:04 > 0:18:07So who wanted to jump on the rollercoaster of redevelopment
0:18:07 > 0:18:09when it went under the hammer?
0:18:09 > 0:18:13Lot 3 we go to now. In Margate.
0:18:13 > 0:18:15It's a mid-terrace house for improvement.
0:18:15 > 0:18:17And it really is here to be sold.
0:18:17 > 0:18:19It's got a guide of 40 to 50. Do I see £50,000?
0:18:19 > 0:18:21I've got a few telephone bids on this one, I think.
0:18:21 > 0:18:25Can I see £50,000 to start me? £50,000, I'm on the way.
0:18:25 > 0:18:2960,000. 55 I will take. 55 do I see?
0:18:29 > 0:18:3255, and 60, Ben. And five.
0:18:32 > 0:18:3565. 65 and 70.
0:18:35 > 0:18:38The packed auction house ensures that the guide price
0:18:38 > 0:18:41of 40,000 to 50,000 is soon left behind.
0:18:41 > 0:18:44We rejoin the bidding at £84,000.
0:18:44 > 0:18:47First time at £84,000.
0:18:47 > 0:18:49Second. Third.
0:18:49 > 0:18:5185. Oh, on the internet.
0:18:52 > 0:18:54I thought you were going to pull my leg then.
0:18:54 > 0:18:5885, 86. It's on the internet.
0:18:58 > 0:19:00With internet and telephone bids,
0:19:00 > 0:19:02it's difficult to keep up with the action.
0:19:02 > 0:19:08We rejoin again as the internet bidder takes it up to £89,000.
0:19:08 > 0:19:1189. And a half.
0:19:11 > 0:19:1389,500. And 90.
0:19:13 > 0:19:16If not, at 89,500 for the first time.
0:19:16 > 0:19:2089,500 for the second time. Third and final time.
0:19:20 > 0:19:23Have they had enough time to come through if they wanted to?
0:19:23 > 0:19:24At 89,500, all done.
0:19:24 > 0:19:26Now, we didn't catch the bidder on the day,
0:19:26 > 0:19:29but it was Michael, who's been on the show before.
0:19:29 > 0:19:33He's an estate agent and developer based in London.
0:19:33 > 0:19:36Last time, he bought this three-bedroom terrace in 2013,
0:19:36 > 0:19:38also in Margate.
0:19:38 > 0:19:40And as you can see,
0:19:40 > 0:19:43Michael is no stranger to properties needing more than a lick of paint.
0:19:53 > 0:19:56This time, I arranged to meet him at his latest purchase,
0:19:56 > 0:19:58that cost £89,500.
0:19:58 > 0:20:00Lovely to see you again.
0:20:00 > 0:20:03- Lovely to see you again, yes. - Congratulations.- Thank you.
0:20:03 > 0:20:06- Tell me what you've been doing recently.- I've been quite busy.
0:20:06 > 0:20:08We like to concentrate on social housing, renovating,
0:20:08 > 0:20:11upgrading, enhancing. But we are fans of Margate.
0:20:11 > 0:20:14We think we can really make it swing,
0:20:14 > 0:20:16and we want aspirational people to move in here.
0:20:16 > 0:20:19And how do you go about finding those people that are aspirational?
0:20:19 > 0:20:22Well, fortunately, because we've been working here
0:20:22 > 0:20:23for the last ten, 12 years,
0:20:23 > 0:20:26there are people asking us for properties all the time.
0:20:26 > 0:20:29And it is very sad to, you know, like with Oliver Twist,
0:20:29 > 0:20:32saying no when they're coming up asking for something.
0:20:32 > 0:20:35Michael is of course developing and letting property as a business,
0:20:35 > 0:20:38but he's keen to create decent housing that benefits
0:20:38 > 0:20:41the area as a whole and makes it a reasonable place to live.
0:20:43 > 0:20:46The most important thing, though, is to have settled communities,
0:20:46 > 0:20:49improved accommodation and a situation where people feel
0:20:49 > 0:20:52that they can stay for one to three years.
0:20:52 > 0:20:54This is very important, if kids are going to a school,
0:20:54 > 0:20:56that they don't have a disrupted education.
0:20:56 > 0:20:58And for people, in terms of employment.
0:20:58 > 0:21:00Employment has changed a great deal.
0:21:00 > 0:21:02Although there's less opportunities than there were
0:21:02 > 0:21:05in the sort of area, there's now many more chances for people
0:21:05 > 0:21:08to work at home with broadband internet IT,
0:21:08 > 0:21:10and this is the sort of thing we'd like.
0:21:10 > 0:21:13OK. Now, that all moves me on quite nicely to talk about
0:21:13 > 0:21:15what you're going to be doing here.
0:21:15 > 0:21:18For starters, I know you'll be getting a few skips outside the door.
0:21:18 > 0:21:22This here is going to give the skip industry of Margate a field day.
0:21:22 > 0:21:25- Just a bit. - There's so much ephemera.
0:21:25 > 0:21:28But there's a lot of stuff here you could maybe give to somebody else.
0:21:28 > 0:21:29There's loads of kids' books around.
0:21:29 > 0:21:32It needs to be, you know, gone, out of the door
0:21:32 > 0:21:34so you can see what the house is like.
0:21:34 > 0:21:36We are going to be careful in any personal effects,
0:21:36 > 0:21:39which we'll try to pass on to whoever used to live here.
0:21:39 > 0:21:42And anything that is of any innate value, we wouldn't want
0:21:42 > 0:21:44to throw away because we live in a cosmetic society
0:21:44 > 0:21:47where there's too many things thrown away, so let's make use of them.
0:21:47 > 0:21:49# Oh, yeah
0:21:49 > 0:21:54# I got the empty tidy bag blues... #
0:21:54 > 0:21:58Yep, I have to agree, it's a utopia of ephemera. Upstairs...
0:21:59 > 0:22:01# Oh, yeah
0:22:01 > 0:22:06# I got the empty tidy bag blues... #
0:22:06 > 0:22:08..and downstairs as well actually.
0:22:08 > 0:22:12# Well, I've been sleeping on the job
0:22:12 > 0:22:17# And I wish I had a better excuse. #
0:22:18 > 0:22:22So Michael will be recycling or upcycling as part of this project,
0:22:22 > 0:22:27but he's also aware of a very interesting plus with this house.
0:22:27 > 0:22:30I think the nicest thing about this is actually the title deeds,
0:22:30 > 0:22:33it is a freehold. So essentially we can do what we want.
0:22:33 > 0:22:36Quite a lot of property, certainly in London and the south-east,
0:22:36 > 0:22:38is leasehold, and it is very, very tricky.
0:22:38 > 0:22:40There are managing agents, there are freeholders.
0:22:40 > 0:22:42Here, you're in control of your own destiny
0:22:42 > 0:22:44and you can make it into a really nice cottage home.
0:22:44 > 0:22:46My concerns are, you know,
0:22:46 > 0:22:49you don't know to what extent the damage of the roof.
0:22:49 > 0:22:52You've got problems outside, you can't even get into the garden.
0:22:52 > 0:22:54I mean, are you worried the more you unpick,
0:22:54 > 0:22:56the more problematic it may be?
0:22:56 > 0:22:58I'm not a doctor, but I sometimes need a second opinion.
0:22:58 > 0:23:01I'll be getting my builders to have another look at it
0:23:01 > 0:23:03because there are issues with the roof,
0:23:03 > 0:23:05and I know there is a downpipe that needs attention.
0:23:05 > 0:23:08So, yes, there will be things, but that's life, isn't it?
0:23:08 > 0:23:10- # That's life - That's life
0:23:10 > 0:23:13# That's what all the people say... #
0:23:13 > 0:23:16As well as Michael getting builders in, I think he's going
0:23:16 > 0:23:18to have to get landscape gardeners in too.
0:23:18 > 0:23:21Tackling this lot isn't going to be a walk in the park.
0:23:21 > 0:23:25More like a rumble in the jungle, and Michael is planning on
0:23:25 > 0:23:28doing this house and the garden in just six weeks.
0:23:28 > 0:23:30Good luck with that one.
0:23:32 > 0:23:35What sort of money do you think you may have to sink into this?
0:23:35 > 0:23:36What budget have you got?
0:23:36 > 0:23:39I know it's the unknown and the unseen at this stage,
0:23:39 > 0:23:42- but what do you think?- We are looking at about 12,000 to 15,000.
0:23:42 > 0:23:45- Oh!- But, as I've said, there could be things.
0:23:45 > 0:23:49We'd have, of course, a new bathroom, a new kitchen.
0:23:49 > 0:23:53With the bathroom, we're hoping to put some nice marble tiles down.
0:23:53 > 0:23:56Not exactly a wow factor, but something a little bit different.
0:23:56 > 0:23:59Otherwise it'll be a reasonable finish, of an average standard,
0:23:59 > 0:24:02but safe, secure and hopefully pleasant.
0:24:02 > 0:24:06And you really think you can get it all in on budget for around 15,000?
0:24:06 > 0:24:08Never say never, but one always...
0:24:08 > 0:24:10Hope springs eternal in the human race.
0:24:10 > 0:24:14I think there could be things that we find, such as details about
0:24:14 > 0:24:17the roof, that could cause problems, but let's hope for the best.
0:24:17 > 0:24:19What about things like windows?
0:24:19 > 0:24:23I'm looking there and I'm feeling that that may need replacing.
0:24:23 > 0:24:25A lot of the frames are decayed.
0:24:25 > 0:24:28I mean, how far are you going to go? The boiler, for example.
0:24:28 > 0:24:31There are lots of things around here that may need updating.
0:24:31 > 0:24:34Well, the government is changing regulations
0:24:34 > 0:24:37so that all private rented accommodation quite soon
0:24:37 > 0:24:40will have to pass a particular thermal insulation standard.
0:24:40 > 0:24:44We will make sure this passes it now, before the regulation changes,
0:24:44 > 0:24:46and if that means changing the windows, so be it.
0:24:46 > 0:24:49And of course if the boiler is no good, we'd have to change that anyway.
0:24:49 > 0:24:53Now, you've mentioned marble tiles. Is that the aspirational look and feel you want for the property?
0:24:53 > 0:24:56Well, the tenants here won't be living in Marble Arch.
0:24:56 > 0:24:59It would be particularly nice if they have some nice tiles in the bathroom.
0:24:59 > 0:25:01It's only a very small bathroom,
0:25:01 > 0:25:03and the cost is not going to be enormous.
0:25:03 > 0:25:07We can't give them gold, but marble, I think, would be a nice substitute.
0:25:07 > 0:25:12There's a few bits and pieces. Nice doors, you've got little fireplaces.
0:25:12 > 0:25:14There is a certain amount of character, not too much,
0:25:14 > 0:25:17it doesn't hit you between the eyes, but there's something that's
0:25:17 > 0:25:22- quite cottagey about this place, isn't there?- I think it's cosy.
0:25:22 > 0:25:24You know, some people use that as a euphemism for small.
0:25:24 > 0:25:27But I think this is a nice, traditional family home,
0:25:27 > 0:25:30where you can actually enjoy the ambience and the pleasure,
0:25:30 > 0:25:32but not in its current condition certainly.
0:25:32 > 0:25:35When it is redone, it will be lovely.
0:25:35 > 0:25:37Oh, I look forward to seeing it clear, I really do.
0:25:37 > 0:25:38Lovely to see you again, Michael.
0:25:38 > 0:25:40Thank you very much indeed. Thank you.
0:25:42 > 0:25:46It may seem like this is a standard two-up, two-down property,
0:25:46 > 0:25:51but Michael plans to turn this into a desirable family home,
0:25:51 > 0:25:54but that budget of £12,000-£15,000 is low,
0:25:54 > 0:25:58considering there could be a lot more to uncover in there.
0:25:58 > 0:25:59Join me later in the programme
0:25:59 > 0:26:03and you can find out how Michael gets on.
0:26:03 > 0:26:05Still to come, in Telford, I show how to make
0:26:05 > 0:26:09this one-bed flat's kitchen fit for gourmet dining.
0:26:09 > 0:26:12Bit of elbow grease, tidy it up, pop a cooker in.
0:26:14 > 0:26:17And Michael's taking the gourmet chef approach himself
0:26:17 > 0:26:20when it comes to managing his budget.
0:26:20 > 0:26:23You can't sort of make an omelette without cracking eggs.
0:26:27 > 0:26:30Earlier, I was in the market town of Ilkeston, Derbyshire,
0:26:30 > 0:26:34where I took a look around this former local authority
0:26:34 > 0:26:36two-bedroom, semi-detached house,
0:26:36 > 0:26:40which was sold at auction for £70,500.
0:26:40 > 0:26:44And there was a surprise in the kitchen.
0:26:44 > 0:26:45Got a cupboard here.
0:26:45 > 0:26:48- Oh, it's not a cupboard. - HE LAUGHS
0:26:48 > 0:26:50Well, I didn't expect that.
0:26:50 > 0:26:52It's another door. Another front door.
0:26:52 > 0:26:56What was the design criteria here, do you think?
0:26:56 > 0:26:59No idea.
0:26:59 > 0:27:02Yes, at a time when many of the houses we featured on
0:27:02 > 0:27:06Homes Under The Hammer were having bifold doors fitted at the rear,
0:27:06 > 0:27:08the previous owners at this house
0:27:08 > 0:27:10had simply made do with "bi-front" doors.
0:27:13 > 0:27:16# It takes two, baby
0:27:16 > 0:27:19# It takes two, baby... #
0:27:19 > 0:27:23The duo taking on the challenge as the proud new owners of their first
0:27:23 > 0:27:28property development were husband and wife team, Trevor and Marie.
0:27:28 > 0:27:30Tell me what you are planning to do to it, then?
0:27:30 > 0:27:34Have a new bathroom, new kitchen, and just plaster it.
0:27:34 > 0:27:38Thinking about knocking that wall out and make the kitchen bigger.
0:27:38 > 0:27:42We are going to have to have a structural engineer in, as we've seen you say.
0:27:42 > 0:27:46- Check it first, then knock it down. - Yeah. We are going to do that.
0:27:46 > 0:27:49Tidy the garden up. Hopefully be able to rent it out...
0:27:49 > 0:27:53- And that's the plan, is it? You bought it to rent?- Yes.- Yeah.
0:27:53 > 0:27:57Marie and Trevor felt 12 weeks would see the house refurbished,
0:27:57 > 0:28:00but we're back five months later to see their progress.
0:28:05 > 0:28:10The kitchen is a much more usable and bright space, with new flooring.
0:28:10 > 0:28:12In place of front door number two,
0:28:12 > 0:28:16there's a window above a space for a small table.
0:28:19 > 0:28:22Trevor and Marie are hoping that all the hard work
0:28:22 > 0:28:24has given the house a clear message
0:28:24 > 0:28:27to send out to all potential renters in the area.
0:28:28 > 0:28:30# Come and get it if you really want it
0:28:30 > 0:28:32# Come and get it if you really need it
0:28:32 > 0:28:35# Come and get it if you really want it
0:28:35 > 0:28:37# Come and get it if you really need it. #
0:28:39 > 0:28:43Upstairs, the bathroom was more of a wet room
0:28:43 > 0:28:45with tired fittings and tiling.
0:28:49 > 0:28:52Now, there's a white suite with crisp tiling
0:28:52 > 0:28:54and complementary flooring.
0:28:57 > 0:28:59# Come and get it if you really want it
0:28:59 > 0:29:01# Come and get it if you really need it
0:29:01 > 0:29:04# Come and get it if you really want it... #
0:29:04 > 0:29:06There's new flooring throughout,
0:29:06 > 0:29:09and the damp problem in the bedroom has been cured.
0:29:13 > 0:29:16The other bedroom, like the majority of rooms in the house,
0:29:16 > 0:29:21has been replastered, and finally the lounge looks different again
0:29:21 > 0:29:23after a clear-out and a new paint scheme.
0:29:26 > 0:29:28One delay in the workflow was due to
0:29:28 > 0:29:31their builder sustaining a back injury,
0:29:31 > 0:29:35but their roofer did find a cure for their leaking guttering.
0:29:35 > 0:29:37Unfortunately, what we had to do was some...
0:29:37 > 0:29:41Actually lengthen the tiles on the roof, over the old guttering,
0:29:41 > 0:29:42The concrete guttering.
0:29:42 > 0:29:45New fascias, new plastic gutterings put down, new downpipes
0:29:45 > 0:29:49and everything to make both the front and back good.
0:29:49 > 0:29:51And that has stopped the damp.
0:29:51 > 0:29:54Originally, Trevor felt the garden was too big,
0:29:54 > 0:29:56so how did he get on with that?
0:29:56 > 0:29:59We've dug the garden and strimmed it all back to make it look
0:29:59 > 0:30:03presentable for whoever comes in and rents the place from us.
0:30:03 > 0:30:07We think it looks good, we've had pebbles all put down where the concrete was all cracking.
0:30:07 > 0:30:10We've had all that removed. And we've had sleepers all put in.
0:30:10 > 0:30:13All the garden rubbish was bagged and then taken
0:30:13 > 0:30:17through the house by Trevor, who did all the labouring.
0:30:17 > 0:30:20His retirement date was delayed, which also contributed to
0:30:20 > 0:30:24the delay in the schedule, but sometimes his help turned out to be
0:30:24 > 0:30:28more of a hindrance, especially when he tidied up what he thought
0:30:28 > 0:30:32were old wires after the electrician had fitted the new shower units.
0:30:32 > 0:30:36Unfortunately, after he had fitted it all,
0:30:36 > 0:30:39I cut several wires, and we had to have him back to redo the wiring.
0:30:39 > 0:30:43- I'd actually...- Cut. - ..cut and spoiled. So...
0:30:43 > 0:30:47that put the cost up a bit as well. I'm pleased with everything.
0:30:47 > 0:30:49Hopefully, who owns it will.
0:30:50 > 0:30:55Speaking of costs, the refurbishment budget was £5,000.
0:30:55 > 0:31:00- How's that looking?- £9,640 exactly. - Exactly.
0:31:00 > 0:31:02Even though we might be spending a few more pennies.
0:31:02 > 0:31:05The main overspends have been on the new guttering,
0:31:05 > 0:31:08the higher-end kitchen and the replastering.
0:31:10 > 0:31:12Trevor and Marie intend to rent,
0:31:12 > 0:31:17so we called along two local estate agents to find out the valuations.
0:31:17 > 0:31:21They paid £70,500 at auction and nearly another £10,000
0:31:21 > 0:31:27on refurbishment, so anything above £80,500 would be good news.
0:31:27 > 0:31:29If I was to place this property on the open market,
0:31:29 > 0:31:34I'd recommend an asking price of £94,950.
0:31:34 > 0:31:36In terms of sale, really ought to be asking
0:31:36 > 0:31:40somewhere between £95,000 and £100,000 for the house.
0:31:40 > 0:31:46- I'm amazed.- Yes, me too. Shocked. - Yeah.- A nice shock.
0:31:46 > 0:31:48Really, really good.
0:31:48 > 0:31:52- If we get anywhere near 94,000, we'll be over the moon.- Yes.
0:31:53 > 0:31:58They're in shock. £94,950 was the lower valuation,
0:31:58 > 0:32:03which looks like a potential profit of £14,000 upwards.
0:32:03 > 0:32:05This could be a game changer.
0:32:05 > 0:32:08Trevor and Marie originally wanted this to rent
0:32:08 > 0:32:10as a way of improving on the 2% interest or so
0:32:10 > 0:32:14they were getting at the bank, so rental values are key here.
0:32:15 > 0:32:19I'd recommend a figure of £425 per calendar month.
0:32:19 > 0:32:24There'd be a good market between £475 and £500 per calendar month.
0:32:24 > 0:32:27- Well, the first rental value I think was...- A little bit low.
0:32:27 > 0:32:29A bit lower, yeah.
0:32:29 > 0:32:33The other one I think is probably dead on what was expected.
0:32:33 > 0:32:35Taking the higher figure,
0:32:35 > 0:32:39that calculates as a yield on their investment of around 7.5%,
0:32:39 > 0:32:44so they've achieved their goal. But which path will they be taking?
0:32:44 > 0:32:47- We're going to put it on the market, see what we can do...- Test it.
0:32:47 > 0:32:52Test the market, as Mary says, and hopefully we can sell it,
0:32:52 > 0:32:56have a little bit of a rest and then, believe it or not,
0:32:56 > 0:32:59buy another one and have another crack.
0:32:59 > 0:33:01Great. But maybe don't be as eager
0:33:01 > 0:33:03with the wire cutters next time, eh, Trevor?
0:33:08 > 0:33:11Telford in Shropshire is a new town
0:33:11 > 0:33:14named after the Scottish civil engineer, Thomas Telford.
0:33:15 > 0:33:19Close by is a settlement, Ironbridge, credited with heralding the dawn
0:33:19 > 0:33:21of the Industrial Revolution.
0:33:21 > 0:33:23# But you won't fool
0:33:23 > 0:33:26# The children of the revolution
0:33:26 > 0:33:28# No, no, no... #
0:33:28 > 0:33:31But I'm here to view something a bit more up to date.
0:33:32 > 0:33:34Not too far from the centre of Telford
0:33:34 > 0:33:38is this 1970s housing development and the property I'm here to see.
0:33:39 > 0:33:42It's a one-bed apartment in this quite smart block
0:33:42 > 0:33:45and is guided at £33,000.
0:33:45 > 0:33:48Formerly a local authority development, many of these flats
0:33:48 > 0:33:51are now owned by housing associations or private landlords.
0:33:53 > 0:33:56So, we're up on the second floor.
0:33:56 > 0:34:00So it's not ideal for elderly folk or ex-professional footballers
0:34:00 > 0:34:05like myself that have got dodgy knees, but good for security.
0:34:05 > 0:34:06What have we got?
0:34:06 > 0:34:11Bathroom just here. Needs a lick of paint and new flooring
0:34:11 > 0:34:14but the suite itself you'd get away with keeping.
0:34:14 > 0:34:17We have the bedroom just there.
0:34:17 > 0:34:20That's a good-sized bedroom for a one-bed flat.
0:34:20 > 0:34:24Needs a lick of paint again and some flooring...
0:34:24 > 0:34:26and into the kitchen,
0:34:26 > 0:34:29which again is a decent-sized kitchen.
0:34:29 > 0:34:32If you're looking to rent it, I think you'd get away with
0:34:32 > 0:34:34keeping how it looks at the moment.
0:34:34 > 0:34:38A bit of elbow grease, tidy it up, pop a cooker in just there.
0:34:38 > 0:34:41If you're looking to sell, you may have to spend
0:34:41 > 0:34:44a little bit more money, put a brand-new kitchen in altogether,
0:34:44 > 0:34:46but it's worth doing a bit of research.
0:34:46 > 0:34:51Find out how much properties like this are selling in this area.
0:34:51 > 0:34:54But there's a boiler there, so there is central heating in.
0:34:54 > 0:34:56There's double glazing, as well.
0:34:56 > 0:34:58Lick of paint and I think you'll be all right.
0:34:58 > 0:35:00Let's check out the lounge.
0:35:02 > 0:35:05So we're through into the lounge. Spacious again.
0:35:05 > 0:35:08I do like the way this flat is proportioned.
0:35:08 > 0:35:11For me, definitely a rental property.
0:35:11 > 0:35:12It's a one-bed.
0:35:12 > 0:35:16Normally you have a high turnover of tenants.
0:35:16 > 0:35:19Families don't tend to rent out one-bedroom properties,
0:35:19 > 0:35:22so in between tenants you tend to have a lot of maintenance.
0:35:22 > 0:35:25So look for things that are easily maintained,
0:35:25 > 0:35:27like this laminate flooring.
0:35:27 > 0:35:30And if you are looking to replace anything in here,
0:35:30 > 0:35:33I'd tend to recommend you didn't spend top dollar.
0:35:35 > 0:35:37If you're thinking of buying to let, you have to factor in
0:35:37 > 0:35:42the turnover of tenants, which means frequent painting and refreshing.
0:35:42 > 0:35:46You've also got to consider any empty periods.
0:35:46 > 0:35:49On top of that, you do have to think about the shared cost
0:35:49 > 0:35:53around the fabric of the building and who looks after it,
0:35:53 > 0:35:56otherwise, things like flat roofs can be a thorn in your side.
0:35:57 > 0:35:58I've come out the back.
0:35:58 > 0:36:00I just want to have a look up at that roof,
0:36:00 > 0:36:04see if it's had any recent maintenance done to it,
0:36:04 > 0:36:07and from what I can see, it has, which is great news.
0:36:07 > 0:36:10And as I look around as well I can see that neighbouring buildings
0:36:10 > 0:36:13have had the same work done, as well.
0:36:13 > 0:36:16Cos costs like that can fall on the owner's shoulders
0:36:16 > 0:36:18and can set you back a few quid.
0:36:18 > 0:36:20In this case, it's thumbs up.
0:36:22 > 0:36:25We called in a local estate agent to give the flat the once-over
0:36:25 > 0:36:28and share his opinions and tell us what it's worth.
0:36:28 > 0:36:31Remember, I said it really just needed a lick of paint?
0:36:31 > 0:36:33I wonder if he'll agree.
0:36:33 > 0:36:37# Here in my deep purple dream... #
0:36:38 > 0:36:41There's not an awful lot to do to the property, really.
0:36:41 > 0:36:44Purple walls and black walls don't really suit most kitchens
0:36:44 > 0:36:48these days, so really it's just decoration.
0:36:48 > 0:36:52Floor coverings pretty much to most of the rooms might be needed
0:36:52 > 0:36:54but the living room floor I would leave as it is.
0:36:54 > 0:36:57It's laminate flooring, so that's in pretty good order.
0:36:57 > 0:37:00But it's double-glazed, gas-fired central heating,
0:37:00 > 0:37:02pretty good for a house.
0:37:02 > 0:37:05So, a quick spruce-up of the walls, floor coverings
0:37:05 > 0:37:09and a few kitchen appliances if it's going to be a rental
0:37:09 > 0:37:10and it should be good to go.
0:37:10 > 0:37:13What would he say the values are?
0:37:13 > 0:37:16Once the works have been carried out to the property
0:37:16 > 0:37:20I would suggest this goes on the open market for £50,000.
0:37:20 > 0:37:23And if the new owner decided to let the property out,
0:37:23 > 0:37:26I would be suggesting to them a rental income
0:37:26 > 0:37:28of around £400 per calendar month.
0:37:28 > 0:37:30I do like this flat.
0:37:30 > 0:37:32I think it's well-proportioned and spacious,
0:37:32 > 0:37:35and I don't think it would take much to get it back up to scratch.
0:37:35 > 0:37:38Let's see who agreed when it went under the hammer.
0:37:38 > 0:37:41Lot 46. Back to Telford.
0:37:42 > 0:37:43Let's say 30 to get it going.
0:37:44 > 0:37:4628 then. Can we get it going at 28?
0:37:46 > 0:37:4828 bid, thank you. At £28,000.
0:37:48 > 0:37:54Can we say 30 now? The bid's at £28,000. Looking for 30. At 28.
0:37:54 > 0:37:5730 bid, thank you. At £30,000. 32?
0:37:57 > 0:37:591, you're saying, 31.
0:37:59 > 0:38:0232, 33,
0:38:02 > 0:38:0334.
0:38:04 > 0:38:07At £34,000 then to my right.
0:38:07 > 0:38:11At £34,000. 35 anywhere else?
0:38:11 > 0:38:1435. At 35 left. 36?
0:38:16 > 0:38:22No. At £35,000, lady's bid standing right. 36 anywhere else?
0:38:22 > 0:38:26If not, I'm selling it at £35,000 for the first time.
0:38:26 > 0:38:29£35,000 for the second time.
0:38:29 > 0:38:32Third and final time at £35,000...
0:38:32 > 0:38:35- GAVEL BANGS - You've bought it, madam, well done.
0:38:35 > 0:38:40The successful purchasers with their £35,000 bid were Helen and Nick.
0:38:41 > 0:38:43They live in the Telford area
0:38:43 > 0:38:46and already have one rental property in their portfolio.
0:38:47 > 0:38:50I met up with them to find out their plans for this one.
0:38:50 > 0:38:53- Helen, nice to meet you.- Hello, and you.- Nick, nice to meet you.- Hi.
0:38:53 > 0:38:56- Congratulations, by the way. - Thank you.- Thank you.
0:38:56 > 0:38:58Tell me, why this particular flat?
0:38:58 > 0:38:59The price, I guess.
0:38:59 > 0:39:03And it's going to be easy to do up and we're going to rent it out.
0:39:03 > 0:39:04This area is pretty good.
0:39:04 > 0:39:07We live in Telford, so anywhere in Telford's good, really.
0:39:07 > 0:39:09Did you do a bit of research
0:39:09 > 0:39:11in where's best to find a property, Nick?
0:39:11 > 0:39:15We looked to find something that was reasonably cheap
0:39:15 > 0:39:18that we felt we could do up and perhaps make some money off.
0:39:18 > 0:39:21And from what I can see, I think you've chosen a good one,
0:39:21 > 0:39:24- haven't you?- Yeah.- Yeah, there's not much to do here, is there?
0:39:24 > 0:39:27First and foremost, tell me what actually got you into property
0:39:27 > 0:39:29and what were you doing before property?
0:39:29 > 0:39:33Well, I was a manager for a big warehouse
0:39:33 > 0:39:37and Helen was a chef in the canteen.
0:39:37 > 0:39:41Yeah, we worked in the same place and the warehouse shut,
0:39:41 > 0:39:45- so we were both made redundant 15 years ago now.- Really?
0:39:45 > 0:39:47- We got married about five years ago. - Good on you.
0:39:47 > 0:39:49- Captured him, didn't you, sharpish?- Yeah, yeah.
0:39:49 > 0:39:52- Got a good catch there. - Found a good 'un. Yeah.
0:39:52 > 0:39:54And when did the property bug get you and who did it get first?
0:39:54 > 0:39:56Oh, I don't know.
0:39:56 > 0:39:59We've done up our own houses in the past
0:39:59 > 0:40:03and we've moved from house to house for various reasons
0:40:03 > 0:40:06and we've made good profits in that sort of thing,
0:40:06 > 0:40:09and I think that's probably where the bug came from.
0:40:09 > 0:40:10- It's a result of it, yeah.- Yeah.
0:40:10 > 0:40:13And we thought as soon as we were made redundant
0:40:13 > 0:40:17it gave us an opportunity to move to this area, where it's a bit cheaper
0:40:17 > 0:40:21than where we were, and do it for a living.
0:40:21 > 0:40:23Where were you? Where were you living before?
0:40:23 > 0:40:26In Surrey or Berkshire and it's very busy down there.
0:40:26 > 0:40:29We wanted to move to live somewhere quieter as well, so... Yeah.
0:40:29 > 0:40:33- We came up here, we found Telford's quite nice, haven't we?- Yeah.
0:40:33 > 0:40:36Bought a place for ourselves and one to do up,
0:40:36 > 0:40:37and this is number two.
0:40:39 > 0:40:42Having had the experience of doing up their first property
0:40:42 > 0:40:45and renting it out, Nick and Helen were hungry for more,
0:40:45 > 0:40:48and so they satisfied their appetite here at Brookside Development,
0:40:48 > 0:40:51so-called because it was built beside a brook.
0:40:53 > 0:40:58A six million pound regeneration scheme started here in 2014,
0:40:58 > 0:41:00which should be good news for property prices.
0:41:03 > 0:41:05So, what are you going to do?
0:41:05 > 0:41:09We were going to change the kitchen and make the bathroom nice
0:41:09 > 0:41:13and do it all, but we've recently had one of the neighbours
0:41:13 > 0:41:16enquire about the place. Her son is interested in it.
0:41:16 > 0:41:19- Well, that's handy, isn't it? - It is, yeah.- Yeah.
0:41:19 > 0:41:22- That might keep your budget down a bit, as well.- Well, yeah.- Well, yeah.
0:41:22 > 0:41:24We're not going to do as much as we were before.
0:41:24 > 0:41:26We're going to make it look nice and liveable for him.
0:41:26 > 0:41:29Yeah, he seems quite happy with it as it is, really,
0:41:29 > 0:41:31- but we want to make it nice for him. - Yeah, of course.
0:41:31 > 0:41:36And how much are you hoping to get away with spending on your budget?
0:41:37 > 0:41:41Well, we were going to spend up to about 5,000
0:41:41 > 0:41:44but possibly only one or two thousand now.
0:41:45 > 0:41:48- It's generous, 5,000, isn't it, from what I can see?- Yeah.
0:41:48 > 0:41:50What's that money going to be spent on?
0:41:50 > 0:41:52Where's most of it going to go, in your opinion?
0:41:52 > 0:41:56Well, if we were to do the whole job, the kitchen, really,
0:41:56 > 0:41:58and the bathroom.
0:41:58 > 0:42:00So what will you do if he does take the property?
0:42:00 > 0:42:02Just a lick of paint really
0:42:02 > 0:42:05and some flooring down in the kitchen
0:42:05 > 0:42:10and the hallway and the bedroom, and that's pretty much it, actually.
0:42:10 > 0:42:13A simple turnaround, this one. This is going to be a simple turnaround.
0:42:13 > 0:42:15Obviously we'll get the boiler checked and the electrics
0:42:15 > 0:42:19and everything like that but, yeah, apart from that it's just painting.
0:42:19 > 0:42:21It's just a bit of elbow grease, isn't it?
0:42:21 > 0:42:24- It's a bit of time, isn't it? - Yeah.- Yeah.- That's all it is.
0:42:24 > 0:42:27- If there's any tiling, Helen does that.- Yeah.- Is that right?
0:42:27 > 0:42:29- Yeah.- She loves tiling. - I love tiling, it's great.
0:42:29 > 0:42:31In the nicest possible way, Nick,
0:42:31 > 0:42:33I'll take your number cos I need some tiling done myself.
0:42:33 > 0:42:36- If that's all right with you? - Yeah, I love it.
0:42:36 > 0:42:38- If you don't mind travelling?- Yeah.
0:42:38 > 0:42:41# I spent a night on the tiles... #
0:42:42 > 0:42:46Joking aside, I think the tiling in here could be vastly improved.
0:42:46 > 0:42:49I'm not keen on the black window reveals,
0:42:49 > 0:42:50which I think would be better tiled
0:42:50 > 0:42:53and the bathroom could do with more than one row of tiles
0:42:53 > 0:42:55around the bath.
0:42:56 > 0:42:59If it were to be fully tiled, you'd get a shower above the bath, too.
0:43:01 > 0:43:04How long are you hoping this work is going to take?
0:43:04 > 0:43:06It's not a lot to do, is it?
0:43:06 > 0:43:10- Two weeks to a month maybe. - Four weeks, I think, yeah.
0:43:10 > 0:43:13What are you hoping to get per calendar month?
0:43:13 > 0:43:17He's happy to pay us about £400 a month, I think, isn't it?
0:43:17 > 0:43:18That's right, yeah.
0:43:18 > 0:43:21Is that the normal going rate? Have you done research round on rentals?
0:43:21 > 0:43:25- Yeah, that's about what it is. 375 - 400 normally, yeah.- Yeah.
0:43:25 > 0:43:27And have you checked on any additional fees
0:43:27 > 0:43:29as well as buying the place?
0:43:30 > 0:43:34Well, there's a management fee, which is about 25 quid a month,
0:43:34 > 0:43:36something like that,
0:43:36 > 0:43:40and I think just the nominal ground rent fee per year,
0:43:40 > 0:43:41and that's it, really.
0:43:41 > 0:43:44- Not too big then? - No, no.- Should be all right.
0:43:44 > 0:43:48- Not going to smash your budget? - No.- I don't think so, no.
0:43:48 > 0:43:51- I like that. I like that. Good luck.- Thanks very much.
0:43:51 > 0:43:54- I wish you all the best.- Thanks very much.- Good luck. Cheers.- Cheers.
0:43:56 > 0:43:59This is only Helen and Nick's second venture
0:43:59 > 0:44:01and it looks like they've landed on their feet.
0:44:01 > 0:44:04They could have a tenant who is willing and waiting
0:44:04 > 0:44:09to take on this flat in more or less the condition it's in at present,
0:44:09 > 0:44:12which would save Helen and Nick time and money.
0:44:12 > 0:44:15But will it be that simple? You can find out later on in the programme.
0:44:18 > 0:44:21So, we've seen the outcome for the first of today's buyers.
0:44:21 > 0:44:23But how did the other two get on?
0:44:23 > 0:44:25Mm. Now, time has passed.
0:44:25 > 0:44:28Do they reap their rewards? Let's find out.
0:44:30 > 0:44:34Back now to the seaside, and Margate on the Kent coast,
0:44:34 > 0:44:37where we met Michael, a property owner and landlord
0:44:37 > 0:44:41who bought this two-bedroom mid-terrace for £89,500.
0:44:43 > 0:44:47From the outside, this property had some cottagey charm.
0:44:47 > 0:44:50But that charm soon wore off when you got to the back garden.
0:44:50 > 0:44:54It was a jungle out there and it was a jumble inside.
0:44:56 > 0:44:58For starters, I know you'll be getting a few skips
0:44:58 > 0:45:00outside the door.
0:45:00 > 0:45:03This here is going to give the skip industry of Margate a field day.
0:45:03 > 0:45:05- SHE LAUGHS - Just a bit.
0:45:05 > 0:45:09Ever the optimist, Michael's hoping to empty and renovate the house,
0:45:09 > 0:45:12and tidy the garden, and fix the roof and the windows
0:45:12 > 0:45:14all in just six weeks,
0:45:14 > 0:45:16all for a conservative figure.
0:45:17 > 0:45:21And you really think you can get it all in on budget for around 15,000?
0:45:21 > 0:45:22Never say never.
0:45:22 > 0:45:26There could be things that we find, such as details about the roof,
0:45:26 > 0:45:29that could cause problems but let's hope for the best.
0:45:29 > 0:45:33We're back 14 weeks later and from the outside, things are looking up.
0:45:35 > 0:45:36Inside the front door...
0:45:36 > 0:45:39Well, it used to look like this.
0:45:39 > 0:45:42Now, neutral shades surround the banister
0:45:42 > 0:45:44and I do like a big mirror in the hall.
0:45:44 > 0:45:47It looks like someone has already taken a shine to this house.
0:45:47 > 0:45:51# Yeah, I'm ready for the good life!
0:45:51 > 0:45:53# Hey! #
0:45:53 > 0:45:56The reception room was, well, a bit unwelcoming.
0:45:57 > 0:46:00Now, it's cosy with a new contemporary fireplace
0:46:00 > 0:46:02and hard-wearing laminate floor.
0:46:04 > 0:46:08# Ooh, yeah!
0:46:08 > 0:46:10# I'm ready for the good life... #
0:46:13 > 0:46:17The kitchen has undergone one of the most dramatic transformations.
0:46:23 > 0:46:25New kitchen units, appliances
0:46:25 > 0:46:29and a new boiler all make it a functioning kitchen now.
0:46:29 > 0:46:31# I'm ready for the good life.
0:46:31 > 0:46:32# Ah, ah, ah, ah, ah
0:46:32 > 0:46:34# Ah, ah, ah, ah
0:46:34 > 0:46:36# I'm ready for the good life... #
0:46:39 > 0:46:42The old bathroom was very tired and tatty.
0:46:42 > 0:46:46Now a new, clean, white suite with marble-effect floor tiles,
0:46:46 > 0:46:49slightly more subdued than the pink predecessors,
0:46:49 > 0:46:51make the room much fresher and cleaner.
0:46:53 > 0:46:55Next is the front bedroom's turn.
0:46:59 > 0:47:02All of the rooms look so much bigger now they've been cleaned out
0:47:02 > 0:47:06and I'm glad to see the feature fireplace has been restored,
0:47:06 > 0:47:07giving a little bit of character.
0:47:17 > 0:47:20And a similar story in the smaller of the two bedrooms.
0:47:21 > 0:47:23# Let me hear you say yeah
0:47:23 > 0:47:25- # Yeah!- Yeah!- Yeah!
0:47:25 > 0:47:28# Yeaaaah!
0:47:28 > 0:47:29# Ah, ah, ah, ah, ah
0:47:29 > 0:47:31# Ah, ah, ah, ah
0:47:31 > 0:47:33# I'm ready for the good life! #
0:47:33 > 0:47:36And what of the rear jungle? Sorry, I meant garden.
0:47:36 > 0:47:39I bet Margate's skip industry hung out the bunting when it was cleared.
0:47:46 > 0:47:50The garden was cluttered full of junk and rubbish and debris,
0:47:50 > 0:47:54and it took us about four skips to get rid of it.
0:47:54 > 0:47:56And then we put these nice pebbles down
0:47:56 > 0:48:00and it now exposes a lovely stone wall and there's a great tree here,
0:48:00 > 0:48:04so it's a nice place for there to be a barbecue. It's really lovely.
0:48:05 > 0:48:09As well as the garden, other major costs were the roof repairs
0:48:09 > 0:48:11and replacing the windows.
0:48:11 > 0:48:15So, how did the £10,000 - £15,000 budget pare up?
0:48:15 > 0:48:18In the end, it went up from 15 to 24,
0:48:18 > 0:48:20so we did go above budget
0:48:20 > 0:48:23but you can't make an omelette without cracking eggs
0:48:23 > 0:48:26and ultimately you're doing this for the future.
0:48:26 > 0:48:28Clearing the personal effects
0:48:28 > 0:48:30and having non-standard size window frames
0:48:30 > 0:48:34meant a delay of three weeks on top of the targeted six weeks.
0:48:35 > 0:48:38Once we started, we essentially had to gut the place,
0:48:38 > 0:48:41replaster it, refurbish it, new kitchen, new bathroom
0:48:41 > 0:48:43and redecorate it,
0:48:43 > 0:48:48and clear the junk in the garden, which was a lot.
0:48:48 > 0:48:50What about all the clutter in the house?
0:48:50 > 0:48:53We did make arrangements for someone who knew the previous occupants
0:48:53 > 0:48:56to try and come and collect any personal effects
0:48:56 > 0:49:00but the remaining stuff, we sold for a charity and raised £174,
0:49:00 > 0:49:02which was nice because it's silly.
0:49:02 > 0:49:05We don't want to get rid of kid's toys and so on
0:49:05 > 0:49:07if someone can use them, so that was a nice gesture.
0:49:07 > 0:49:09The rest of the stuff just had to be thrown away.
0:49:11 > 0:49:14We called in two local estate agents to give us their thoughts
0:49:14 > 0:49:16and valuations on the property.
0:49:16 > 0:49:20Being local, they should have a good knowledge of the area,
0:49:20 > 0:49:23the market, and the pros and cons of the property.
0:49:23 > 0:49:26The kitchen and the bathroom, they've done a good job
0:49:26 > 0:49:27on the refurbishment there.
0:49:27 > 0:49:31It appeals to the market that they're obviously looking for.
0:49:31 > 0:49:35Very clean and tidy again. Quite impressed with that, actually.
0:49:35 > 0:49:37I think, with this type of property, there's not an awful lot
0:49:37 > 0:49:39that you could have done differently.
0:49:39 > 0:49:42I think the layout is very good, and I also think
0:49:42 > 0:49:45there's plenty of space which has been made the most of.
0:49:46 > 0:49:49Michael paid £89,500 at auction
0:49:49 > 0:49:52and then a further £24,000 refurbishing,
0:49:52 > 0:49:57taking his total spend to £113,500.
0:49:57 > 0:50:00What is its market value?
0:50:00 > 0:50:02I think on the sales market this property would achieve
0:50:02 > 0:50:05between £120,000 and £125,000.
0:50:05 > 0:50:08I think for this type of two-bedroom property
0:50:08 > 0:50:13you're going to be looking at around about £125,000.
0:50:13 > 0:50:17That could mean a potential pre-tax profit of £11,500,
0:50:17 > 0:50:21but this was always for rental and as you can see from the furnishings,
0:50:21 > 0:50:23Michael's already got tenants.
0:50:24 > 0:50:28We immediately found a family who wanted to live here.
0:50:28 > 0:50:32It was a situation where they were living in overcrowded circumstances.
0:50:32 > 0:50:35They're quite aspirational and will contribute to the economy
0:50:35 > 0:50:39but this is now great for them and it's really looking super.
0:50:39 > 0:50:42What do the agents think the property should rent for?
0:50:42 > 0:50:45Rental-wise for this property I would be expecting to achieve
0:50:45 > 0:50:50round about £650 - £700 per calendar month.
0:50:50 > 0:50:53On the current market I would suspect that this would achieve
0:50:53 > 0:50:57between £600 and £625 per calendar month.
0:50:57 > 0:51:00So, what did Michael agree with his new tenants?
0:51:00 > 0:51:02That sounds about right.
0:51:02 > 0:51:04I think we've agreed 650 a month, so that's excellent.
0:51:04 > 0:51:06That's really good.
0:51:06 > 0:51:11At £650 per calendar month, Michael is getting a yield of nearly 7%.
0:51:11 > 0:51:14So, would he do it all again?
0:51:14 > 0:51:17I'd want to repeat this if possible in the future.
0:51:17 > 0:51:19It's really good to help regenerate housing stock,
0:51:19 > 0:51:22make places habitable and then house families.
0:51:27 > 0:51:29Back now to Telford in Shropshire where I looked at
0:51:29 > 0:51:32this former local authority one-bed flat
0:51:32 > 0:51:35and I was grumbling before I knew it.
0:51:35 > 0:51:39So we're up on the second floor, so it's not ideal for elderly folk
0:51:39 > 0:51:44or ex-professional footballers like myself that have got dodgy knees.
0:51:44 > 0:51:47# I can't stand up
0:51:47 > 0:51:50# For falling down... #
0:51:52 > 0:51:54Seriously though, if you had a problem with that,
0:51:54 > 0:51:57there was very little else to take issue with.
0:51:57 > 0:52:01OK, it needed a good redecoration, but with gas central heating,
0:52:01 > 0:52:05great room proportions and a guide of £33,000,
0:52:05 > 0:52:08I thought this was a good investment.
0:52:08 > 0:52:12And husband and wife team Nick and Helen obviously agreed with me.
0:52:12 > 0:52:15They bought the flat for £35,000.
0:52:15 > 0:52:17They are full-time developers
0:52:17 > 0:52:20although this is only their second property.
0:52:20 > 0:52:24Any work needed doing, they were going to get stuck in themselves.
0:52:24 > 0:52:27- If there's any tiling, Helen does that.- Yeah, I like that.
0:52:27 > 0:52:30- Is that right?- She loves tiling. - Yeah, I love tiling.- It's great.
0:52:30 > 0:52:31In the nicest possible way, Nick,
0:52:31 > 0:52:34- I'll take your number cos I need some tiling done myself.- Yeah, I love it.
0:52:34 > 0:52:39- If that's all right with you? If you don't mind travelling.- I love it.
0:52:39 > 0:52:41# Call on me
0:52:41 > 0:52:42# Call on me
0:52:42 > 0:52:45# Call on me
0:52:45 > 0:52:47# Call on me... #
0:52:47 > 0:52:50What can I say, viewers? Perks of the job.
0:52:50 > 0:52:53Nick and Helen hoped to spend just £1,000 - £2,000
0:52:53 > 0:52:55and turn it around in four weeks.
0:52:57 > 0:53:00They already have someone interested in renting,
0:53:00 > 0:53:03so things were looking up.
0:53:03 > 0:53:05# I'm the same boy I used to be. #
0:53:07 > 0:53:10Things can change quickly in property though.
0:53:10 > 0:53:13A month has passed and we've returned.
0:53:13 > 0:53:14Will everything still be on track?
0:53:19 > 0:53:21# A new sensation
0:53:21 > 0:53:23# New sensation
0:53:23 > 0:53:26# Hey
0:53:29 > 0:53:32# A new sensation... #
0:53:32 > 0:53:34I didn't think this flat needed much work, but Nick and Helen
0:53:34 > 0:53:37have managed to give this place a new lease of life.
0:53:37 > 0:53:40So what have they done?
0:53:40 > 0:53:43We've redecorated,
0:53:43 > 0:53:48put flooring in three of the rooms,
0:53:48 > 0:53:50aside from the living room.
0:53:50 > 0:53:53We were planning to leave most of the units here
0:53:53 > 0:53:57and just replace the doors and spruce the kitchen up a bit,
0:53:57 > 0:54:01but we decided that once we started taking things down,
0:54:01 > 0:54:03we wanted to make a better job of it,
0:54:03 > 0:54:06so we changed the units completely.
0:54:06 > 0:54:08We had the boiler checked.
0:54:08 > 0:54:12And put in a new washing machine and cooker, as well.
0:54:12 > 0:54:14And the kitchen looks much improved.
0:54:14 > 0:54:16But hasn't something else changed
0:54:16 > 0:54:18that you're not telling us about, Helen?
0:54:18 > 0:54:22We've re-grouted some of the tiles that were here
0:54:22 > 0:54:24and put some extra ones up.
0:54:27 > 0:54:30Yes, Helen indulged in her favourite part of DIY - the tiling.
0:54:30 > 0:54:33And, to be fair, I think she's done a great job.
0:54:33 > 0:54:36The kitchen looks so much better for it.
0:54:36 > 0:54:38She didn't just stop there though.
0:54:38 > 0:54:43In the bathroom... Retiled, put new flooring down,
0:54:43 > 0:54:46just cleaned everything, really, and repainted, really.
0:54:46 > 0:54:51Oh, we put new taps on, with a shower attachment, as well.
0:54:51 > 0:54:53# Don't stop me now
0:54:53 > 0:54:55# I'm having such a good time
0:54:55 > 0:54:58# I'm having a ball... #
0:54:58 > 0:54:59There's no stopping her,
0:54:59 > 0:55:02and thanks to the new tiles, they can fit a shower above the bath.
0:55:02 > 0:55:03Even better.
0:55:05 > 0:55:07Nick and Helen had a tenant interested
0:55:07 > 0:55:09before they even began this development.
0:55:09 > 0:55:12But has he seen the fruits of their labour?
0:55:14 > 0:55:17Yeah, our proposed tenant came and saw the property
0:55:17 > 0:55:20just two days ago and he loved it.
0:55:20 > 0:55:25So he's going to be moving in with the rent we were asking for.
0:55:25 > 0:55:27I don't blame him.
0:55:27 > 0:55:29I think this is a great flat with landlords that clearly care
0:55:29 > 0:55:31about their properties.
0:55:32 > 0:55:35Originally, they were going to spend up to £5,000
0:55:35 > 0:55:37and completely redecorate,
0:55:37 > 0:55:40including replacing the kitchen and the bathroom.
0:55:40 > 0:55:43When the potential tenant liked the flat as it was,
0:55:43 > 0:55:46they revised that down to £2,000.
0:55:47 > 0:55:49What have they ended up spending?
0:55:50 > 0:55:56Excluding all the fees and expenses, we spent about £2,200.
0:55:56 > 0:56:00- Most of the money, I guess, went on the kitchen.- Yeah.
0:56:01 > 0:56:03I don't think that's bad at all
0:56:03 > 0:56:05but what do two local property experts think?
0:56:05 > 0:56:08We've asked them along to get their opinions.
0:56:09 > 0:56:14This is the second time that I've been to this particular property.
0:56:14 > 0:56:18The work carried out to the property I would say is a very good standard
0:56:18 > 0:56:20for this property type.
0:56:20 > 0:56:23Nice to see a nice, new, fresh kitchen in the property
0:56:23 > 0:56:26and the rest of the decoration is about right
0:56:26 > 0:56:27for sale and for letting.
0:56:27 > 0:56:30The selling point of the property is definitely the new kitchen
0:56:30 > 0:56:33and the fact that it's very neutral living throughout.
0:56:33 > 0:56:36For a first-time buyer and investor, it's a perfect opportunity.
0:56:36 > 0:56:38At the moment, there is quite a lot currently for sale and rent
0:56:38 > 0:56:41in the local area, so at least doing the work inside
0:56:41 > 0:56:44will hopefully have the advantage over the other competition.
0:56:44 > 0:56:47Having bought the property for £35,000
0:56:47 > 0:56:52and spent £2,200 on development, what could the flat be worth?
0:56:52 > 0:56:56If this was to go on the open market today for sale purposes,
0:56:56 > 0:57:00I would expect this to achieve around about £50,000.
0:57:00 > 0:57:02If the vendor was to put this property on the open market today,
0:57:02 > 0:57:06I believe it would achieve in the region of £40,000 - £45,000.
0:57:06 > 0:57:09If this was to go on the rental market today,
0:57:09 > 0:57:14I would suggest achieving around about £400 per calendar month.
0:57:14 > 0:57:16If the vendor was to put this property on the market for rent,
0:57:16 > 0:57:19I believe it would achieve in the region of £375 per calendar month
0:57:19 > 0:57:22and £395 per calendar month.
0:57:23 > 0:57:27That's what we were expecting, as well. We actually got 390, so...
0:57:27 > 0:57:31- Quite good.- Yeah, what we were expecting. That's good.
0:57:31 > 0:57:34With a total spend of £37,200,
0:57:34 > 0:57:37that rental figure of £390 per calendar month
0:57:37 > 0:57:42that they've agreed with their tenant will give them a yield of 12.5%.
0:57:42 > 0:57:44Not bad for a month's work.
0:57:44 > 0:57:46Have they both enjoyed the experience?
0:57:48 > 0:57:51It's been really enjoyable, actually. I've enjoyed it.
0:57:51 > 0:57:53Yeah, I think we'd buy again at auction, wouldn't we?
0:57:53 > 0:57:56Yeah, definitely. Yeah, you get good value for money.
0:57:56 > 0:57:59Yeah, yeah. We'd like to do it again if we can.
0:58:03 > 0:58:06Well, we hope you've picked up some valuable information
0:58:06 > 0:58:07on today's show.
0:58:07 > 0:58:09And enjoyed seeing what our buyers did
0:58:09 > 0:58:11with their new-found knowledge.
0:58:11 > 0:58:14So, make sure you join us next time on Homes Under The Hammer.
0:58:14 > 0:58:15- Goodbye.- Goodbye.- Goodbye.