0:00:02 > 0:00:03Hello, home is where the heart is,
0:00:03 > 0:00:06whether it's a chic city pad or a peaceful country cottage.
0:00:06 > 0:00:08Or maybe you've always wanted to buy a plot of land
0:00:08 > 0:00:11and build your house from the ground up.
0:00:11 > 0:00:12Yes, well, whatever your dream,
0:00:12 > 0:00:14it could be waiting for you at the auctions.
0:00:41 > 0:00:44Now bidding at auction can be a daunting task.
0:00:44 > 0:00:48But the adrenaline buzz that you get when the gavel falls in your favour,
0:00:48 > 0:00:50well, there is nothing quite like it.
0:00:50 > 0:00:53So who came away from the auction room feeling victorious?
0:00:53 > 0:00:56Let's see what was bought on today's show...
0:00:57 > 0:01:01In Shropshire, is the writing on the wall for this house?
0:01:01 > 0:01:03That's not good.
0:01:03 > 0:01:05This is adding up to a fairly serious picture.
0:01:08 > 0:01:12Whereas on a trip to Doncaster, I see a house at a knockdown price.
0:01:14 > 0:01:16Maybe that's why.
0:01:18 > 0:01:23And it's earmuffs at the ready for this problematic property in Strood.
0:01:24 > 0:01:27No, this property will not be for everyone.
0:01:29 > 0:01:31All these properties have been sold at auction.
0:01:31 > 0:01:33We'll find out who bought them and what they paid for them
0:01:33 > 0:01:36when they went under the hammer.
0:01:36 > 0:01:38It's yours.
0:01:46 > 0:01:50Well, nestled in the heart of rural North Shropshire
0:01:50 > 0:01:53is the little hamlet of High Hatton.
0:01:53 > 0:01:55No amenities to speak of,
0:01:55 > 0:01:59but if it's peace, quiet and lovely scenery you're after,
0:01:59 > 0:02:01this is your spot.
0:02:02 > 0:02:06This is exactly what you imagine when you say rolling countryside
0:02:06 > 0:02:10and you are certainly away from it all.
0:02:10 > 0:02:15The nearest big town is Shrewsbury and that's a 30-minute drive away.
0:02:15 > 0:02:20So what is it going to cost to buy a home in this beautiful part of the world?
0:02:20 > 0:02:24Well, maybe not as much as you might think.
0:02:24 > 0:02:29£90,000 plus was the guide price for this...
0:02:29 > 0:02:34A three-bedroomed semi-detached brick built ex-local authority property,
0:02:34 > 0:02:37loads of land... Looks pretty good.
0:02:40 > 0:02:41Well, no issue with off-road parking here.
0:02:41 > 0:02:45There's loads of drive space and plenty of lawn.
0:02:45 > 0:02:48A complete blank canvas for a gardener
0:02:48 > 0:02:51or low maintenance for those who are just happy to use a mower.
0:02:53 > 0:02:56So, as with most ex-local authority property,
0:02:56 > 0:02:59we're expecting space and solid walls.
0:02:59 > 0:03:01Well, we've certainly got the space
0:03:01 > 0:03:04the moment you walk in through the front door - a large area here.
0:03:04 > 0:03:05Stairs up to your bedrooms.
0:03:05 > 0:03:09Down this little corridor, a large sort of dining area there
0:03:09 > 0:03:12and then into your main living space.
0:03:12 > 0:03:16Lots of light pouring into this room, it's a good size,
0:03:16 > 0:03:19you've got open fires here, lots of little places where you can store stuff.
0:03:19 > 0:03:25I mean, ex-local authority houses are generally really practical places to live.
0:03:25 > 0:03:27So that's good. Through to the kitchen and...
0:03:29 > 0:03:31Now that's interesting...
0:03:32 > 0:03:35You don't normally expect to walk downhill...
0:03:35 > 0:03:37er...
0:03:37 > 0:03:40when you're walking around a house, but, er...
0:03:40 > 0:03:42That's not good...
0:03:42 > 0:03:45This floor here is much lower than that floor there.
0:03:45 > 0:03:46Oh...
0:03:46 > 0:03:48Oh, dear.
0:03:48 > 0:03:49That's not good.
0:03:49 > 0:03:53This is adding up to a fairly serious picture.
0:03:53 > 0:03:56I shall come back to that very large crack.
0:03:56 > 0:03:59Let's continue our exploration for the moment.
0:03:59 > 0:04:01Into the kitchen.
0:04:01 > 0:04:05It's actually a good size, it looks like it's been recently refurbished.
0:04:05 > 0:04:07It's possibly not the highest quality cabinets,
0:04:07 > 0:04:11but it's clean, it's usable,
0:04:11 > 0:04:13a bit more extra space there.
0:04:13 > 0:04:15I mean, it's a good house...
0:04:15 > 0:04:17with one slight flaw.
0:04:17 > 0:04:19No, slight is the wrong word.
0:04:19 > 0:04:22One potentially massive flaw...
0:04:22 > 0:04:23or uneven FLOOR.
0:04:25 > 0:04:27# What can the matter be?
0:04:27 > 0:04:30# Yeah
0:04:30 > 0:04:32# You're fatally flawed. #
0:04:32 > 0:04:37Oh, dear, and there was me saying how solid ex-local authority housing generally is.
0:04:37 > 0:04:42Clearly something's very wrong and my guess is it's subsidence
0:04:42 > 0:04:45because those tell-tale cracks are everywhere.
0:04:46 > 0:04:49Well, upstairs, once again it's a case of good and bad.
0:04:49 > 0:04:52Three really nice-sized bedrooms
0:04:52 > 0:04:54and a bathroom where you would hope it would be -
0:04:54 > 0:04:58at the top of the stairs - in reasonable condition.
0:04:58 > 0:05:00Well, that is until you start...
0:05:00 > 0:05:02well, "Until you start poking about," I was just about to say.
0:05:02 > 0:05:04But you don't have to poke about very much.
0:05:04 > 0:05:09Just open your eyes and you see the most humongous crack in this wall.
0:05:09 > 0:05:14So the subsidence is not limited to that side of the house,
0:05:14 > 0:05:16it's on this side, as well.
0:05:16 > 0:05:17And look at it!
0:05:17 > 0:05:19I mean, that is really serious.
0:05:19 > 0:05:21Um, wow!
0:05:21 > 0:05:22You can't cover that up. I mean...
0:05:22 > 0:05:24wow!
0:05:24 > 0:05:26# Slip sliding away
0:05:27 > 0:05:30# Slip sliding away
0:05:33 > 0:05:35# You know the nearer your destination
0:05:35 > 0:05:39# The more you're slip sliding away. #
0:05:39 > 0:05:43Such a shame because the space here is really good
0:05:43 > 0:05:46with three bedrooms, two of which are good size doubles
0:05:46 > 0:05:48and then a smaller single.
0:05:48 > 0:05:51But it's the structure of the house that's letting the side down,
0:05:51 > 0:05:55or, should I say, the side is letting the house down.
0:05:56 > 0:05:59So around to the back of the property and great views,
0:05:59 > 0:06:03good space, but time for a bit of detective work.
0:06:03 > 0:06:05What is causing all those problems inside?
0:06:05 > 0:06:09And I don't think you have to go too far to see...
0:06:09 > 0:06:11the potential culprit.
0:06:11 > 0:06:13We've got a slab of concrete here.
0:06:13 > 0:06:15It's been filled at some point in the past
0:06:15 > 0:06:17and yet another crack has developed.
0:06:17 > 0:06:20This is sinking down towards this here,
0:06:20 > 0:06:22which, surprise, surprise, is a drain.
0:06:22 > 0:06:25And if you look at that, well,
0:06:25 > 0:06:27it's all fallen to pieces.
0:06:27 > 0:06:29Water's getting in there,
0:06:29 > 0:06:31leaking down this little gap round the edge, there.
0:06:31 > 0:06:36The actual drain itself might be giving way further down.
0:06:36 > 0:06:39That is then basically saturating this bit of land,
0:06:39 > 0:06:43which means that the foundations are giving way and this corner,
0:06:43 > 0:06:45and, actually, unfortunately the whole of this side of the house,
0:06:45 > 0:06:48is starting to sink. It is classic subsidence.
0:06:48 > 0:06:50MUSIC: Bad News by Moon Martin
0:06:50 > 0:06:58# Bad news. #
0:06:58 > 0:07:02Course it is fixable, but normally it would require underpinning,
0:07:02 > 0:07:05digging down under the foundations and then supporting it
0:07:05 > 0:07:07with lots and lots of concrete.
0:07:07 > 0:07:10It needs to be undertaken by experts
0:07:10 > 0:07:13and can cost in excess of £10,000.
0:07:13 > 0:07:16But as long as you factor it in when you buy the house,
0:07:16 > 0:07:18it doesn't have to be a dealbreaker.
0:07:18 > 0:07:21But if you stumble into this unaware of the issue,
0:07:21 > 0:07:23you'd be in for a rather nasty shock.
0:07:25 > 0:07:28What does a local estate agent make of this sinking house?
0:07:33 > 0:07:37I think one of the key benefits of this property
0:07:37 > 0:07:39is its lovely rural location.
0:07:39 > 0:07:43That's really attractive to a wide range of buyers.
0:07:43 > 0:07:46The subsidence is obviously a large issue
0:07:46 > 0:07:49and something that would need to be sorted out at a very early stage
0:07:49 > 0:07:52before anything else progressed.
0:07:52 > 0:07:54But once that is sorted...
0:07:55 > 0:07:59..and it's certified signed off, it could make a lovely home.
0:07:59 > 0:08:03I agree and making a reasonable assumption that it costs,
0:08:03 > 0:08:05say, £10,000 to fix the problem,
0:08:05 > 0:08:07what kind of value could this house,
0:08:07 > 0:08:10guided at £90,000, have on the sales market?
0:08:11 > 0:08:14You'd expect a property like this to sell for between
0:08:14 > 0:08:17£180,000 and £190,000.
0:08:17 > 0:08:19That's encouraging.
0:08:19 > 0:08:21And what about its rental potential?
0:08:22 > 0:08:27We'd expect this property to let for between £650 per calendar month
0:08:27 > 0:08:30and £675 per calendar month.
0:08:36 > 0:08:40So it's a house in a really lovely location,
0:08:40 > 0:08:44intrinsically a good property, loads of space.
0:08:44 > 0:08:48Only one slight fly, or rather elephant, in the ointment,
0:08:48 > 0:08:50and that is that subsidence.
0:08:50 > 0:08:52But get it at the right price
0:08:52 > 0:08:54and factor in the cost of putting it right
0:08:54 > 0:08:57and it could still be a really good one to go for.
0:08:57 > 0:09:00Let's see who did that when it went under the hammer.
0:09:02 > 0:09:06197, we move to Shropshire. It's a freehold semi-detached house
0:09:06 > 0:09:08with attractive views to front and rear.
0:09:08 > 0:09:10Start me at £80,000.
0:09:10 > 0:09:12Upwards of £80,000, please. 80, anyone?
0:09:12 > 0:09:14On my left, 80 I'm bid.
0:09:14 > 0:09:1681 anywhere? 80 here, your bid.
0:09:16 > 0:09:1781 anywhere? Yes?
0:09:17 > 0:09:2181. 82? 82. 83?
0:09:21 > 0:09:2583. 84? 84. 85?
0:09:25 > 0:09:2985. 86? At 86, there. I saw you, madam. 87?
0:09:29 > 0:09:3387. 88? And 89? Yes. 89.
0:09:33 > 0:09:37And 90, please? 90 I'm bid. 91?
0:09:37 > 0:09:4191, fresh place. 92. 92. 93, sir. 93, 94.
0:09:41 > 0:09:44No. 93,000, gentleman on the aisle.
0:09:44 > 0:09:46First time, then, at 93.
0:09:46 > 0:09:48Second time at 93. Anybody else?
0:09:48 > 0:09:50Third and last time at £93,000.
0:09:50 > 0:09:53It's going to sell on the aisle, 93,000.
0:09:53 > 0:09:56Sold. 93.
0:09:56 > 0:09:59And so just over the guide price and for £93,000
0:09:59 > 0:10:03the three-bed sinking house in Shropshire
0:10:03 > 0:10:04was bought by Mohammed.
0:10:04 > 0:10:07Mohammed is a taxi driver,
0:10:07 > 0:10:10but has done a number of property refurbishments over the years.
0:10:10 > 0:10:14And he joined me, along with his son, Arif, back at the house.
0:10:15 > 0:10:20- Mohammed, Arif, good to meet you both. Congratulations.- Thank you.
0:10:20 > 0:10:22Tell me why you wanted to buy the house.
0:10:22 > 0:10:24Well, it's in a good location.
0:10:24 > 0:10:27It's got nice, interesting views and the guide price was quite appealing.
0:10:27 > 0:10:31So, when did you come to see it?
0:10:31 > 0:10:33We didn't see it before the auction.
0:10:33 > 0:10:34- You didn't?- No.- No.
0:10:34 > 0:10:38- When did you see it for the first time?- Today.- Today?!- Yeah.
0:10:38 > 0:10:41So, what did you think when you saw it for the first time inside?
0:10:41 > 0:10:44It was all right. It was a good condition.
0:10:44 > 0:10:46Not a lot of work needs to be done. It's quite modern.
0:10:46 > 0:10:49Did you just say not a lot of work needs to be done?
0:10:49 > 0:10:51- On the interior. - HE LAUGHS
0:10:51 > 0:10:54Structurally, a fair bit of work, I think.
0:10:54 > 0:10:56Now, the subsidence would definitely cause a few people
0:10:56 > 0:10:58to have sleepless nights.
0:10:58 > 0:11:00I saw worse than this.
0:11:00 > 0:11:02We can do it, no problem.
0:11:02 > 0:11:08Well, they seem remarkably calm about buying this house blind,
0:11:08 > 0:11:12and then finding it's got fairly large structural issues.
0:11:12 > 0:11:16To be fair to Mohammed, though, I've seen worse. Mmm...a lot worse!
0:11:16 > 0:11:18And they've already thought about tackling it with
0:11:18 > 0:11:22a structural report, and getting contractors in to fix it,
0:11:22 > 0:11:25so hopefully, it will turn out OK.
0:11:25 > 0:11:27So, apart from sorting out the subsidence, then,
0:11:27 > 0:11:29what are you planning to do to the house?
0:11:29 > 0:11:35It doesn't need much work, only, like, you know...skimming
0:11:35 > 0:11:39if you want to do it, or just do the paint.
0:11:39 > 0:11:41So, what's the budget for what you're planning?
0:11:41 > 0:11:43It's ten grand.
0:11:43 > 0:11:46- To get the whole place sorted? - Yeah, yeah, ten grand.
0:11:46 > 0:11:48- No more than ten grand.- OK.
0:11:48 > 0:11:50And what about timescale?
0:11:50 > 0:11:54- Probably three to six months. - Right.- Around that sort of time.
0:11:54 > 0:11:56Oh, I don't think so...
0:11:56 > 0:11:57THEY LAUGH
0:11:58 > 0:12:02Not three months. Maybe six to eight weeks.
0:12:03 > 0:12:06Six to eight weeks at that £10,000 budget
0:12:06 > 0:12:08might be pushing it, Mohammed.
0:12:08 > 0:12:12The subsidence alone might take £10,000 to fix.
0:12:12 > 0:12:16It seems this might be a bit of a learning curve for them both.
0:12:16 > 0:12:19Obviously, Arif, you're quite young.
0:12:19 > 0:12:20- How old are you?- 16.
0:12:20 > 0:12:23Are you getting involved in the family business, then, with this,
0:12:23 > 0:12:26- or into the property side of things? - Yes, he's about...
0:12:26 > 0:12:33- nine or ten since he started on this interesting business.- Oh, great.
0:12:33 > 0:12:35Yeah, he's very good on it.
0:12:35 > 0:12:38So, what's your job going to be in the renovation?
0:12:38 > 0:12:42Probably just managing it, really.
0:12:42 > 0:12:47- Oh, great.- Yeah. Nothing too hard...on the labour side.
0:12:47 > 0:12:48OK, and you enjoy it, obviously.
0:12:48 > 0:12:52- Yeah, it's good fun. It gives a good return as well.- Yeah, yeah?
0:12:52 > 0:12:55- Good pocket money.- Well, listen, congratulations!- Thank you.
0:12:55 > 0:12:57- And good luck with it!- Thank you.
0:12:57 > 0:12:59- Look forward to seeing how you get on!- Yes, sure.
0:12:59 > 0:13:05Um...it would seem that young Arif has possibly a slightly
0:13:05 > 0:13:09teeny-weeny-weeny-weeny bit more grasp on the potential problems
0:13:09 > 0:13:13that lie ahead, especially with that subsidence.
0:13:13 > 0:13:15Thankfully, I think at the end of the day,
0:13:15 > 0:13:18they will still do OK, but I don't think it's going to be
0:13:18 > 0:13:22quite as straightforward as Mohammed thinks.
0:13:22 > 0:13:25You can find out what happens later in the show.
0:13:30 > 0:13:33Doncaster in South Yorkshire is where I'm heading today.
0:13:33 > 0:13:36This is a place which has long been a stopping-off point,
0:13:36 > 0:13:41with stagecoach trades from the 17th and 18th century generating
0:13:41 > 0:13:43wealth that built the town centre.
0:13:46 > 0:13:50Just south-west of the centre is the area of Edlington.
0:13:50 > 0:13:52Once the home of Yorkshire's main colliery,
0:13:52 > 0:13:55it has fallen into decline, which means there are opportunities
0:13:55 > 0:13:58here to get a whole lot of house for not a whole lot of money.
0:13:58 > 0:14:02The property I'm here to see is right in the heart of Edlington.
0:14:02 > 0:14:04It has a guide price of £12,000-plus,
0:14:04 > 0:14:08which seems pretty reasonable for a three-bed, mid-terraced house.
0:14:09 > 0:14:10Maybe that's why.
0:14:10 > 0:14:13MUSIC: The Sound Of Breaking Glass by Nick Lowe
0:14:13 > 0:14:16# Sound of breaking glass... #
0:14:16 > 0:14:19Broken glass or not, £12,000 does seem remarkably cheap
0:14:19 > 0:14:23for any property, let alone a three-bed house.
0:14:23 > 0:14:25It's making me really nervous about what I'm
0:14:25 > 0:14:27going to find behind this front door.
0:14:29 > 0:14:31OK.
0:14:31 > 0:14:34The first thing you notice, as you come into the really tight, narrow
0:14:34 > 0:14:38hall now, I'm not sure why this wall is on a bit of a skew.
0:14:38 > 0:14:39That's a bit of a strange one.
0:14:39 > 0:14:41And it's false.
0:14:41 > 0:14:44You've got a door here which doesn't fit that frame,
0:14:44 > 0:14:46so must swing around to this one here.
0:14:46 > 0:14:49There's a room behind here,
0:14:49 > 0:14:51which is very small.
0:14:51 > 0:14:54And we come through into the living room area.
0:14:55 > 0:14:58There's a cupboard, of sorts, just there.
0:14:58 > 0:15:01A false wall, knock it through, give yourself some more space.
0:15:01 > 0:15:03Another door going up to the stairs.
0:15:03 > 0:15:06I haven't seen that since the '70s, when I lived in Leicester.
0:15:06 > 0:15:10If you follow me through here, I'll show you the kitchen area, which is very small,
0:15:10 > 0:15:12but it's usable,
0:15:12 > 0:15:14although you could think about taking this wall out,
0:15:14 > 0:15:18which would create a kitchen, dining, family area.
0:15:18 > 0:15:23Perfect for a small house like this to create more space,
0:15:23 > 0:15:24and that's what I would do.
0:15:24 > 0:15:26MUSIC: The Modern Way by The Kaiser Chiefs
0:15:26 > 0:15:29Now, I know open plan isn't everyone's cup of tea.
0:15:29 > 0:15:31The cooking smells in the sitting room,
0:15:31 > 0:15:34the clatter of dishes when you're trying to watch the footie,
0:15:34 > 0:15:36assuming I'm not doing the dishes, of course,
0:15:36 > 0:15:40but a lot of families do prefer a bigger space to interact in.
0:15:41 > 0:15:45Small galley kitchens just don't cut it nowadays.
0:15:45 > 0:15:49# This is the modern way... #
0:15:54 > 0:15:57OK, upstairs, we've got three bedrooms,
0:15:57 > 0:16:00and we've got a bathroom as well, upstairs. Great start.
0:16:00 > 0:16:02A bedroom to the back of the property,
0:16:02 > 0:16:04a smaller bedroom just here,
0:16:04 > 0:16:09and in here, the first thing you see is this old, classic fireplace.
0:16:09 > 0:16:12Nice high ceiling, but on the ceiling, there's polystyrene tiles.
0:16:12 > 0:16:14They would have to come out.
0:16:14 > 0:16:16Very classic terraced house,
0:16:16 > 0:16:19which just needs a bit of TLC,
0:16:19 > 0:16:21a bit of warmth brought back into it,
0:16:21 > 0:16:23just bring it back to the 21st-century.
0:16:23 > 0:16:25MUSIC: 21st Century Life by Sam Sparro
0:16:25 > 0:16:27# 21st century life
0:16:27 > 0:16:30# I got swept away
0:16:31 > 0:16:34# I got 21,000 things
0:16:34 > 0:16:39# That I gotta do today... #
0:16:39 > 0:16:43There sure are a number of jobs to get this place up to spec.
0:16:43 > 0:16:45Quite frankly, for the most part,
0:16:45 > 0:16:48I'll strip everything out and start again.
0:16:48 > 0:16:53New bathrooms, decor, carpets, plasterwork, electrics, the lot.
0:16:53 > 0:16:55And a few panes of glass wouldn't go amiss.
0:16:57 > 0:16:59Outside, it's a bit of an eyesore.
0:17:04 > 0:17:07Fixing that fence will add to your to-do list,
0:17:07 > 0:17:10but remember, the house was guided at only 12 grand.
0:17:12 > 0:17:14MUSIC: Feel Good Inc by Gorillaz
0:17:14 > 0:17:17What does a local estate agent make of it, and the area it's in?
0:17:20 > 0:17:23This area's good, because a lot of them are run down,
0:17:23 > 0:17:26but with the increase in employment, increase in jobs, bringing them
0:17:26 > 0:17:30into the area, I think certainly demand is high,
0:17:30 > 0:17:32and will continue to improve.
0:17:33 > 0:17:36OK, so the area is likely to improve, but will that be
0:17:36 > 0:17:40reflected in the property prices, with this house guided at just £12,000?
0:17:42 > 0:17:44My gut instinct is once renovated,
0:17:44 > 0:17:48you're probably going to be looking at £50,000.
0:17:48 > 0:17:53So, resale values are certainly encouraging, but what about rental?
0:17:53 > 0:17:56Rental, with it being a three-bed, done up nicely,
0:17:56 > 0:17:59you're looking at £450 per calendar month.
0:18:03 > 0:18:06What can I say? This is a total overhaul for me.
0:18:06 > 0:18:10Strip it back to the bare bones and start again job.
0:18:10 > 0:18:13And if you get it for anywhere near the guide price of £12,000,
0:18:13 > 0:18:15I think it's money well spent.
0:18:15 > 0:18:17Let's see who spotted it when it went under the hammer.
0:18:21 > 0:18:23Lot 15.
0:18:23 > 0:18:26It's a three-bedroomed mid-townhouse
0:18:26 > 0:18:30that needs a scheme of repair and improvement.
0:18:30 > 0:18:32There are two property bids
0:18:32 > 0:18:35and three telephone bids in on this property.
0:18:35 > 0:18:39The lower of the two property bids is £15,000.
0:18:39 > 0:18:42I will start the bidding, therefore, at 15,000.
0:18:42 > 0:18:4415. 16, somewhere?
0:18:44 > 0:18:4516, I've got.
0:18:45 > 0:18:49With me at 17. 17,000. 18, sir?
0:18:50 > 0:18:5318,000. 19.
0:18:53 > 0:18:55At 19,000. 20.
0:18:55 > 0:18:58At £20,000. 21 with me.
0:18:58 > 0:19:01At 21. 22?
0:19:01 > 0:19:0522 is bid. 22 and a half with me on a property bid.
0:19:05 > 0:19:0723,000. 23.
0:19:07 > 0:19:09The property is finished.
0:19:09 > 0:19:1123,000 is on the telephone.
0:19:11 > 0:19:1323,500, a seated bid.
0:19:13 > 0:19:16At 23,500. 24?
0:19:16 > 0:19:1924 is bid. 24,500.
0:19:19 > 0:19:2124,500. 25,000.
0:19:23 > 0:19:2425.
0:19:24 > 0:19:2825 and a half, thank you. 25 and a half.
0:19:28 > 0:19:2926.
0:19:29 > 0:19:3126, I've got you.
0:19:31 > 0:19:34At 26, a new bidder. 26,500?
0:19:34 > 0:19:3526,500.
0:19:36 > 0:19:3826 and a half. 27, sir?
0:19:40 > 0:19:42£26,500.
0:19:42 > 0:19:43Once.
0:19:44 > 0:19:45Twice.
0:19:45 > 0:19:47Third time.
0:19:47 > 0:19:49Sold at 26 and a half to number one.
0:19:49 > 0:19:50Thank you.
0:19:50 > 0:19:54# You're number one
0:19:54 > 0:19:57# In my book... #
0:19:57 > 0:20:00And that number one bidder was Graham, who along with
0:20:00 > 0:20:02his business colleague, James,
0:20:02 > 0:20:05acquired the house for 26 and a half grand.
0:20:05 > 0:20:08Perhaps not surprisingly, over double that low guide price.
0:20:10 > 0:20:13Graham is a co-director of a firm that builds
0:20:13 > 0:20:16and manufacturers timber buildings for gardens.
0:20:16 > 0:20:19But over the years, he's done a number of property refurbishments.
0:20:22 > 0:20:23Nice to meet you, Graham.
0:20:23 > 0:20:25- Congratulations.- Thank you. Nice to meet you too, Dion.
0:20:25 > 0:20:28Tell me why this property in particular?
0:20:28 > 0:20:33Well, we were looking to buy a few properties in the area
0:20:33 > 0:20:34to go in a portfolio.
0:20:34 > 0:20:38- Did you mention "we?" Is there somebody else? Have you got a business partner or...?- Yeah.
0:20:38 > 0:20:40I've done this for about ten years.
0:20:40 > 0:20:44I've got properties, and commercial and domestic properties,
0:20:44 > 0:20:47but a number of colleagues approached me and said,
0:20:47 > 0:20:49"We want to get involved in a pension fund,"
0:20:49 > 0:20:50so we threw some money at it.
0:20:50 > 0:20:52There's four of us. We all work together,
0:20:52 > 0:20:55and we're really doing it as, like, a ten-year plan, really,
0:20:55 > 0:20:59for their pensions, and we decided to choose this area to try
0:20:59 > 0:21:01and get a decent portfolio together.
0:21:01 > 0:21:04Will they all be to rent, or all be to sell?
0:21:04 > 0:21:08The idea is that we get a portfolio which is of a fair balance,
0:21:08 > 0:21:11so some will be literally just to rent out
0:21:11 > 0:21:13if we think that they're a decent price.
0:21:13 > 0:21:16But this particular one is one that we want to knock about,
0:21:16 > 0:21:20and that's why we've chosen the low end of the market.
0:21:20 > 0:21:22MUSIC: Better Together by Jack Johnson
0:21:22 > 0:21:23I like Graham's thinking.
0:21:23 > 0:21:26He and his colleagues, James, Matthew and Richard
0:21:26 > 0:21:28will be spreading the risk.
0:21:28 > 0:21:31As well as the highs and lows of property development,
0:21:31 > 0:21:34it might be much more fun than doing it on his own.
0:21:34 > 0:21:38# Well, it's always better when we're together
0:21:38 > 0:21:42# Yeah, it's always better when we're together... #
0:21:42 > 0:21:46And this low-end property is to be part of the group's rental portfolio.
0:21:48 > 0:21:50I was interested to know how much knocking about
0:21:50 > 0:21:52Graham and co had planned here.
0:21:54 > 0:21:56- What are you going to knock about in this?- Everything.
0:21:56 > 0:21:58DION LAUGHS
0:21:58 > 0:22:01Absolutely everything, from the bathroom,
0:22:01 > 0:22:04down to the kitchen, to the living room, knocking walls out.
0:22:04 > 0:22:07- Get rid of this hole.- Uh-huh. - Block it up.
0:22:07 > 0:22:09Redo the kitchen altogether,
0:22:09 > 0:22:11put a new door down there.
0:22:11 > 0:22:15We're going to knock through the living room into the hallway
0:22:15 > 0:22:17so that's a completely open space.
0:22:18 > 0:22:24Every single wall will be taken back to the brick, replastered.
0:22:24 > 0:22:28- All the windows need replacing. The windows, not the actual frames... - Yes!
0:22:28 > 0:22:30..but the windowpanes.
0:22:30 > 0:22:31New bathroom.
0:22:31 > 0:22:34We're going to knock through where the boiler is,
0:22:34 > 0:22:35and put a shower in there.
0:22:35 > 0:22:37The central heating needs doing.
0:22:37 > 0:22:38There's no central heating.
0:22:38 > 0:22:41It needs a new combi boiler putting in,
0:22:41 > 0:22:44so there's quite a substantial amount of work to be done.
0:22:44 > 0:22:48- There's a little bit of work to do...- In the garden.- ..outside as well!
0:22:48 > 0:22:51- Yeah, do you think you could do me a new fence?- Or A fence!- Yeah.
0:22:51 > 0:22:52DION LAUGHS
0:22:52 > 0:22:56And how long are you hoping this will take you to get finished, Graham?
0:22:56 > 0:23:01We've budgeted on five weeks, and we think it's going to cost 12, 13,000.
0:23:01 > 0:23:03That's the budget.
0:23:03 > 0:23:06And this extensive range of work will be contracted out to builders,
0:23:06 > 0:23:08with Graham overseeing the whole project.
0:23:10 > 0:23:12I was intrigued to know how the finances would work
0:23:12 > 0:23:14if this house remained as a rental property.
0:23:16 > 0:23:18With the value of the property that we paid for it,
0:23:18 > 0:23:22and the refurb, we think we can keep it under the 40,000 mark.
0:23:22 > 0:23:26That way, we should get it valued at, say, 55, 60,
0:23:26 > 0:23:29- and get the 40,000 out again by remortgaging it...- OK.
0:23:29 > 0:23:32..to recycle it and roll it over into the next property.
0:23:32 > 0:23:36- Listen, I wish you all the best, Graham. I hope it all works out for you.- Thank you very much.
0:23:36 > 0:23:38- Good luck to you, pal.- All right, thank you. We'll need it.
0:23:40 > 0:23:43Graham has already got lots of experience in property developing,
0:23:43 > 0:23:44but this is new to him.
0:23:44 > 0:23:47Working in a team, and working with his mates.
0:23:47 > 0:23:49Will they be mates at the end of it?
0:23:49 > 0:23:51You can find out later on in the programme.
0:23:52 > 0:23:55Coming up, if you want transport links right on your doorstep,
0:23:55 > 0:23:58this house in Strood might be the house for you.
0:23:58 > 0:24:01The train line runs right the way across the back of the garden.
0:24:02 > 0:24:04And we return to Doncaster to see if Graham and co have
0:24:04 > 0:24:06cleaned up when it comes to their property purchase.
0:24:06 > 0:24:08None of us have really got our hands dirty,
0:24:08 > 0:24:12apart from this morning, having a quick wipe round with the cloth!
0:24:14 > 0:24:18But first, we return to the small Shropshire hamlet of High Hatton.
0:24:18 > 0:24:19And it was here that we came across
0:24:19 > 0:24:22a large three-bed semidetached house.
0:24:22 > 0:24:25Surrounded by land both back and front,
0:24:25 > 0:24:28it seemed like a great rural retreat,
0:24:28 > 0:24:31but while the views looking out of the house were stunning,
0:24:31 > 0:24:35the views looking in were striking.
0:24:35 > 0:24:37Mmm...but in a less pleasing way.
0:24:37 > 0:24:40I mean, look at it. I mean, that is really serious.
0:24:40 > 0:24:45# I'm falling to pieces
0:24:45 > 0:24:49# I'm falling to pieces... #
0:24:49 > 0:24:53Yes, this place had big issues with subsidence,
0:24:53 > 0:24:58and was going to need some serious structural work to get it back on an even footing.
0:24:58 > 0:25:02Not that Mohammed or his son Arif knew this because
0:25:02 > 0:25:04guess when they first saw it?
0:25:04 > 0:25:05- Today!- Yeah...
0:25:05 > 0:25:07So what did you think when you saw it
0:25:07 > 0:25:09for the first time inside?
0:25:09 > 0:25:11It was all right. It was in good condition.
0:25:11 > 0:25:14Not a lot of work needs to be done, it's quite modern...
0:25:14 > 0:25:16Did you just say, "Not a lot of work needs to be done"?
0:25:16 > 0:25:19On the interior.
0:25:19 > 0:25:22Structurally, a fair bit of work, I think.
0:25:22 > 0:25:23But we can do it, no problem.
0:25:23 > 0:25:25Well, despite his confidence,
0:25:25 > 0:25:28this really wasn't the house you should buy unseen.
0:25:28 > 0:25:31But taxi driver Mohammed had quite a lot of experience over the years
0:25:31 > 0:25:34having refurbished a number of properties,
0:25:34 > 0:25:37so he wasn't overly concerned about the state of the house.
0:25:37 > 0:25:41With his 16-year-old son Arif designated as project manager,
0:25:41 > 0:25:45he thought he could turn it around on just a £10,000 budget
0:25:45 > 0:25:48and it might be possible to do in 6-8 weeks,
0:25:48 > 0:25:52whereas Arif felt a timescale of 3-6 months was much more realistic.
0:25:52 > 0:25:54So who was right?
0:25:58 > 0:26:02Well, now over ten months later we're back and the good news is...
0:26:04 > 0:26:05..the house is still standing.
0:26:05 > 0:26:09And on the face of it, all seems well.
0:26:11 > 0:26:13But what about those structural cracks?
0:26:17 > 0:26:20You can see we've repointed all along here.
0:26:20 > 0:26:23That's mainly cos we've done underpinning in this area, so it's
0:26:23 > 0:26:27all had new concrete underneath, been reinforced with steel as well.
0:26:27 > 0:26:32And the drainage system has all been redone because that was
0:26:32 > 0:26:35the cause of the subsidence, it's had all new drains around here.
0:26:35 > 0:26:39Well, it might have taken a lot of work to get this sorted,
0:26:39 > 0:26:43but now it's done and this house should be set for some time to come.
0:26:43 > 0:26:46- # Never been better - Oh, oh, oh, oh
0:26:46 > 0:26:48# Come on
0:26:48 > 0:26:51- # Altogether - Oh, oh, oh, oh
0:26:51 > 0:26:54# I've never been better... #
0:26:54 > 0:26:57And with the structural work finished they could finally
0:26:57 > 0:26:59turn their attention to the interior of the house.
0:26:59 > 0:27:02We've replastered, re-skimmed, painted,
0:27:02 > 0:27:05all the doors have been changed,
0:27:05 > 0:27:08new carpet, new concrete for the flooring.
0:27:08 > 0:27:10And structural issues aside,
0:27:10 > 0:27:14the house wasn't in too bad a decorative order to start with,
0:27:14 > 0:27:18but by changing the flooring and fresh paint work,
0:27:18 > 0:27:21the whole place has been given a lift from top to bottom,
0:27:21 > 0:27:24with the three good size bedrooms again looking crisp,
0:27:24 > 0:27:27clean, and most importantly, crack free.
0:27:30 > 0:27:33But to get to this stage has taken considerably longer than expected,
0:27:33 > 0:27:37so is Mohammed still as chilled about the challenges?
0:27:39 > 0:27:43There's not big, anything, really. No challenge.
0:27:44 > 0:27:48I've so far just take time to find the builders.
0:27:48 > 0:27:51That was mainly because it's quite far away from where we live,
0:27:51 > 0:27:56so we had to find builders in the area, we had to get surveyors out.
0:27:56 > 0:27:59It took us about, I think, six weeks between each surveyor,
0:27:59 > 0:28:01and we had three or four surveyors out,
0:28:01 > 0:28:05so the original timescale we thought would be 3-6 months,
0:28:05 > 0:28:08but in actual fact it's taken us ten months.
0:28:08 > 0:28:11Structural issues and particularly underpinning is definitely
0:28:11 > 0:28:14something not to rush into, so I'm not surprised the timescale slipped,
0:28:14 > 0:28:18but what about their budget, did that go the same way?
0:28:18 > 0:28:23The original budget was £10,000 for decorating, subsidence, everything,
0:28:23 > 0:28:26but that's actually gone up to £30,000.
0:28:26 > 0:28:29That's because there was more underpinning required
0:28:29 > 0:28:35than we initially thought and we've also had to put in new flooring.
0:28:35 > 0:28:36Oh, dear.
0:28:36 > 0:28:39Three times the original budget,
0:28:39 > 0:28:42that is one of the perils of buying blind.
0:28:42 > 0:28:46Addt that spend to the original purchase price of 93,000
0:28:46 > 0:28:49and the total comes to 123,000.
0:28:49 > 0:28:52So has all the risk been worth it?
0:28:52 > 0:28:55We asked the agent who saw it before to come and tell us
0:28:55 > 0:28:58what he makes of the work that's been done.
0:28:58 > 0:29:01Mohammed's made a really nice job of it.
0:29:01 > 0:29:05It certainly looks completely different from last time I came out.
0:29:05 > 0:29:09I think he's made a very nice cottage.
0:29:09 > 0:29:11The standard of the finish is good
0:29:11 > 0:29:14and it will appeal to the sales market.
0:29:14 > 0:29:19The negatives of the property are the previous subsidence may put
0:29:19 > 0:29:23some potential buyers off which is likely to come up in some surveys.
0:29:23 > 0:29:27So the history of subsidence may affect the value,
0:29:27 > 0:29:30but currently Mohammed and Arif are uncertain
0:29:30 > 0:29:33whether to rent or sell. Maybe the figures will help.
0:29:35 > 0:29:39If I was to offer this property onto the lettings market,
0:29:39 > 0:29:43I'd put it up for rent at £650 per calendar month.
0:29:43 > 0:29:47Rent is good. Maybe £50 short.
0:29:48 > 0:29:53But even a rental return of £650 per calendar month
0:29:53 > 0:29:56would generate a rental yield above 6%, so that's OK.
0:29:56 > 0:30:02But what about the resale value of a house they've invested £123,000 into?
0:30:04 > 0:30:08On the sales market, I'd expect this property to achieve
0:30:08 > 0:30:10between 180 and £190,000.
0:30:10 > 0:30:14Evaluation is relatively low.
0:30:14 > 0:30:21I think it should be around 195 to 200,000, but it's OK, I guess.
0:30:21 > 0:30:23Well, I think it's more than OK.
0:30:23 > 0:30:26There's a potential pre-tax profit of up to £67,000.
0:30:26 > 0:30:29Given it was bought blind and had subsidence,
0:30:29 > 0:30:31this could have been a lot worse.
0:30:31 > 0:30:35But have they decided what to do with the house?
0:30:35 > 0:30:40It's better for us to sell it because if we put it on the rent,
0:30:40 > 0:30:43it take a long time to recover money,
0:30:43 > 0:30:47- so it's better to just move on, sell it.- I'm not surprised.
0:30:47 > 0:30:50With Mohammed and Arif being based a couple of hours away
0:30:50 > 0:30:54in Bedford, it probably does make more sense to sell this on.
0:30:54 > 0:30:56So what's next?
0:30:58 > 0:31:01I think we'll probably head back to the auction
0:31:01 > 0:31:04and see what's available on the market.
0:31:09 > 0:31:12Strood in Kent seems to have a lot going for it.
0:31:12 > 0:31:15Good rail and transport links, plenty of shops,
0:31:15 > 0:31:18and apart from the abundance of rain we have today,
0:31:18 > 0:31:20it's also not short on traffic.
0:31:22 > 0:31:24So the first thing you can't help but notice,
0:31:24 > 0:31:26well, this is a really busy road,
0:31:26 > 0:31:29and it's not helped by the roundabout which is just there
0:31:29 > 0:31:32which means cars are slowing down and speeding up
0:31:32 > 0:31:36right in front of this property I'm here to see.
0:31:36 > 0:31:37Urgh, not ideal.
0:31:37 > 0:31:40But there is some good news because it's an end terrace
0:31:40 > 0:31:43and you do get this nice, big space here
0:31:43 > 0:31:45for off-road parking at the side.
0:31:45 > 0:31:50So it's got two bedrooms and it's got a guide price of 95 to £100,000.
0:31:51 > 0:31:55# Why does it always rain on me? #
0:31:55 > 0:31:59It's good to get out of that rain
0:31:59 > 0:32:02and away from that busy road noise.
0:32:02 > 0:32:05So inside, well, you can see somebody's already ripped up
0:32:05 > 0:32:09the carpets, and there they are, plonked on the floor.
0:32:09 > 0:32:12So definitely need to think about new carpets in this house.
0:32:12 > 0:32:14One real positive for me is that, well,
0:32:14 > 0:32:17it looks like new double glazed windows
0:32:17 > 0:32:20and it really does keep all that noise out there at bay,
0:32:20 > 0:32:23although you can hear a little bit of the traffic,
0:32:23 > 0:32:25so that is something to bear in mind.
0:32:25 > 0:32:27Good news is, we've got electricity in here.
0:32:27 > 0:32:30Somebody's going to need to plumb in this radiator because
0:32:30 > 0:32:33it's hanging off the wall, so that needs to be done.
0:32:33 > 0:32:36And right at the back of the property, we've got the kitchen.
0:32:36 > 0:32:38Now this is a great space.
0:32:38 > 0:32:41You could even think about potentially opening this space up,
0:32:41 > 0:32:43but I quite like it separate.
0:32:43 > 0:32:47And I would go as far as saying, I think these are fairly new units,
0:32:47 > 0:32:50you've got good worktops, you could come along,
0:32:50 > 0:32:53just plumb in the washing machine here, not bad at all.
0:32:53 > 0:32:56You can see the sizeable garden from where I'm standing.
0:32:56 > 0:32:57Bit of a negative,
0:32:57 > 0:33:01I can see the train line runs right the way across
0:33:01 > 0:33:05the back of the garden, so it's not the best sight I've ever seen,
0:33:05 > 0:33:07but if you work with the interior space,
0:33:07 > 0:33:09it's a pretty good house so far.
0:33:11 > 0:33:13Yes, this property is a real mixed bag.
0:33:13 > 0:33:16The inside of the house is really promising,
0:33:16 > 0:33:17good sized rooms downstairs,
0:33:17 > 0:33:20a kitchen that could do with a bit of upgrading,
0:33:20 > 0:33:22but otherwise it's fine.
0:33:25 > 0:33:28And upstairs, the two bedrooms offer plenty of room.
0:33:28 > 0:33:32Though, like downstairs, missing a radiator or two.
0:33:35 > 0:33:36And along with the bathroom,
0:33:36 > 0:33:39you would say this is a great family home,
0:33:39 > 0:33:42but its position is really what lets it down,
0:33:42 > 0:33:45unless you're into cars and trains, that is.
0:33:45 > 0:33:48They're not the only concerns outside.
0:33:48 > 0:33:51Looking carefully, I can see a crack.
0:33:51 > 0:33:54Have a look up there. It goes from there all the way down to there.
0:33:54 > 0:33:58Yes. Cracks like that might not be anything to worry about,
0:33:58 > 0:34:02but on the other hand, well, it could be a sign of subsidence.
0:34:02 > 0:34:06I just hope whoever bought this at auction had a survey done
0:34:06 > 0:34:10so they don't get any nasty surprises later on down the line.
0:34:10 > 0:34:15It may be a case that all the traffic, those cars and trains
0:34:15 > 0:34:18and being end of terrace, the house might have cracked under pressure.
0:34:18 > 0:34:22And as we know from Mohammed and Arif's experience with their
0:34:22 > 0:34:27property in Shropshire, cracks like these need to be checked by experts.
0:34:27 > 0:34:30Unfortunately, that's not all the downsides there are.
0:34:32 > 0:34:36There is another thing about this property that's not ideal.
0:34:36 > 0:34:41It's leasehold, which means a yearly expense to factor in, as well as
0:34:41 > 0:34:45permissions needed if you want to make any major changes to the place.
0:34:45 > 0:34:47But there is something that makes it more appealing.
0:34:47 > 0:34:50Hold on to this for another four years
0:34:50 > 0:34:56and then you have the option to buy the freehold for £100 plus costs.
0:34:56 > 0:35:00Make this a freehold property and you'll certainly add appeal.
0:35:00 > 0:35:04Ah, at last, a bit of potential good news.
0:35:04 > 0:35:09Adding appeal can also add value, so despite a few concerns
0:35:09 > 0:35:12perhaps this house does actually have a lot to offer.
0:35:12 > 0:35:15But whether the positives outweigh the negatives, I'm not sure.
0:35:15 > 0:35:20# One part right, two parts wrong
0:35:20 > 0:35:24# One part love, two parts pain
0:35:24 > 0:35:29# One part sunshine, two parts rain. #
0:35:29 > 0:35:33What does a local estate agent think about the house and its position?
0:35:35 > 0:35:37I think for a lot of people it's going to put them off.
0:35:37 > 0:35:39The noise isn't too bad
0:35:39 > 0:35:41because if you get good double glazing that will get rid of
0:35:41 > 0:35:45some of it, but I think if you've got young children or pets,
0:35:45 > 0:35:48you're going to be really concerned about being in this location.
0:35:48 > 0:35:50One thing that it does have going for it,
0:35:50 > 0:35:52you've got a nice lot of room at the side,
0:35:52 > 0:35:56so you've got plenty of parking and the house inside is a very
0:35:56 > 0:35:59light house, so you can do something with it.
0:36:00 > 0:36:04And perhaps with that guide price of 95 to £100,000,
0:36:04 > 0:36:08one of the things you could do with it is make some money.
0:36:09 > 0:36:11I think once this property has been renovated
0:36:11 > 0:36:14we'd be looking in the region of £170,000.
0:36:14 > 0:36:16If I was going to rent this property
0:36:16 > 0:36:20I would be looking in the region of £895 per calendar month.
0:36:20 > 0:36:22With those kind of figures,
0:36:22 > 0:36:26I'm starting to like this house a whole lot more.
0:36:28 > 0:36:31No, this property will not be for everyone,
0:36:31 > 0:36:35but if it is just cosmetic work that needs to be done here, well,
0:36:35 > 0:36:38it shouldn't take too much money to turn this place around,
0:36:38 > 0:36:42just as long as that crack isn't a sign of anything more sinister.
0:36:42 > 0:36:44Who was prepared to take it on?
0:36:44 > 0:36:46Well, let's go to auction and find out.
0:36:50 > 0:36:52It's a house refurbishment.
0:36:52 > 0:36:54It's got two bedrooms and a bathroom
0:36:54 > 0:36:56on the first floor. 100,000 for it.
0:36:56 > 0:36:5890,000 I'll take if you like.
0:36:58 > 0:37:0090,000, in the white T-shirt I have.
0:37:00 > 0:37:03And 5 I want now. 95, do I see?
0:37:03 > 0:37:0595. 95, sitting down.
0:37:05 > 0:37:07Can I say 100? 100.
0:37:07 > 0:37:09And 5. 105, if you like.
0:37:09 > 0:37:11105, do I see?
0:37:11 > 0:37:12I'll take 2, if you like.
0:37:12 > 0:37:16102? Thank you. 102. 105.
0:37:16 > 0:37:19107. 110. 112.
0:37:19 > 0:37:22114. 116.
0:37:22 > 0:37:25116. 116. 118.
0:37:25 > 0:37:27118. 120.
0:37:27 > 0:37:29120, sitting down.
0:37:29 > 0:37:32120. And 2. And 4.
0:37:32 > 0:37:36124. 124. And 6. 126.
0:37:36 > 0:37:39And 8. 128, I've got.
0:37:39 > 0:37:42130. 132.
0:37:42 > 0:37:45£130,000, back to the maiden bidder for the first time.
0:37:45 > 0:37:48£130,000 for the second.
0:37:48 > 0:37:51Third and final time. If you're all done at 130.
0:37:51 > 0:37:54All done? Well done, sir, you stuck with it.
0:37:56 > 0:37:59And the bidder who stuck with it from start to finish
0:37:59 > 0:38:02and bought it for 130,000 was Daniel.
0:38:02 > 0:38:06Daniel works as a security guard and currently lives nearly an hour
0:38:06 > 0:38:10and a half away in West London with his parents and his girlfriend Kim.
0:38:10 > 0:38:14So I was intrigued to know why he was buying this house in Strood?
0:38:17 > 0:38:20- Daniel, congratulations. - Thank you.- Well done.
0:38:20 > 0:38:23- So you got this one, the hammer went down and it's yours.- Yeah.
0:38:23 > 0:38:25What did you do to prepare?
0:38:25 > 0:38:28I looked around the area, but as soon as I saw this house
0:38:28 > 0:38:32in the catalogue, I just sort of fell in love with it.
0:38:32 > 0:38:33Why did you fall in love with it?
0:38:33 > 0:38:35I mean, this is not everybody's dream.
0:38:35 > 0:38:39It overlooks a roundabout, a very busy main road, a train track.
0:38:39 > 0:38:42It has not put you off in the slightest?
0:38:42 > 0:38:46No, to tell you the truth, it actually excites me to have such.
0:38:46 > 0:38:48The garden's quite big.
0:38:48 > 0:38:50You've got the whole side of the house as well,
0:38:50 > 0:38:55and obviously inside it isn't too major works to be done.
0:38:55 > 0:38:57It's only mainly painting and decorating,
0:38:57 > 0:38:59replacing the bathroom and kitchen.
0:38:59 > 0:39:02OK. Now interestingly, you're not from this part of the world.
0:39:02 > 0:39:04Why did you decide to buy here?
0:39:04 > 0:39:07Mainly because the price was right.
0:39:07 > 0:39:10Obviously when you live in London then prices just soar through
0:39:10 > 0:39:12the roof, so I couldn't afford it,
0:39:12 > 0:39:16but the plan is live here for a year or two, see how it goes,
0:39:16 > 0:39:21see how work goes here, and then gradually move closer to home.
0:39:21 > 0:39:22OK.
0:39:22 > 0:39:25It's a few years to go yet when I get back to home.
0:39:25 > 0:39:28# I'm working my way back to you, babe. #
0:39:30 > 0:39:32Well, I think Daniel isn't alone in finding
0:39:32 > 0:39:34London prices too hot to handle,
0:39:34 > 0:39:37so it really does make sense to move further away from now,
0:39:37 > 0:39:40though in some ways he's gambling that he will be able to
0:39:40 > 0:39:43afford to move back towards London
0:39:43 > 0:39:47where prices seem to be going only one way, and that's up.
0:39:47 > 0:39:50So how does he hope he will add value to the house and at
0:39:50 > 0:39:54the same time make it a great new home for him and his girlfriend Kim?
0:39:54 > 0:39:59We'll be refurbishing it fully, new bathroom, new kitchen,
0:39:59 > 0:40:04new paint on the walls, windows will get replaced upstairs.
0:40:04 > 0:40:06The garden, that's what I'm most excited about.
0:40:06 > 0:40:09Why are you most excited about the outside spaces?
0:40:09 > 0:40:13I like learning new things, so I've never done gardening before,
0:40:13 > 0:40:17never laid grass, never done decking, never planned,
0:40:17 > 0:40:20no gardening whatsoever, so it's a new thing to me,
0:40:20 > 0:40:25so I'll be learning, researching and seeing what we can do.
0:40:25 > 0:40:28One of the things he has already done is have that crack checked out
0:40:28 > 0:40:30by a friend who is a surveyor
0:40:30 > 0:40:34and they're convinced it's nothing to worry about.
0:40:34 > 0:40:37He's also looked in to getting the freehold, which he can buy
0:40:37 > 0:40:42for £100 in 2019, but while he might have to wait till then
0:40:42 > 0:40:46to get that sorted I'm hoping the house will be done a little quicker.
0:40:46 > 0:40:50So how long do you think it's going to take you to do the work?
0:40:50 > 0:40:53We've planned two weeks.
0:40:53 > 0:40:56- What?!- Yeah.- Hold on. How are you going to do that?
0:40:56 > 0:41:00I happen to know you are a very busy security guard,
0:41:00 > 0:41:02and how many hours a week do you work?
0:41:02 > 0:41:06- On average, about 72. - 72 hours a week?!
0:41:06 > 0:41:09How on earth are you going to manage to put any time into this?
0:41:09 > 0:41:14Well, I'll work around work, do it on my days off.
0:41:14 > 0:41:17My dad has got holidays already booked,
0:41:17 > 0:41:19so he'll be here most of the time.
0:41:19 > 0:41:22Tell me about your dad. Is your dad a builder?
0:41:22 > 0:41:24Yeah, he's a coach driver now,
0:41:24 > 0:41:28but he'd done building for a good 30 years.
0:41:28 > 0:41:32But he does everything, building, plumbing, plastering, everything.
0:41:32 > 0:41:34- He is the man to know.- He is, yeah.
0:41:34 > 0:41:38He'll be teaching me and showing me a few things along the way.
0:41:38 > 0:41:41Daniel is lucky to have such a skilled dad at hand
0:41:41 > 0:41:45because with a 72-hour week his time for the renovation is limited.
0:41:45 > 0:41:49I've got a feeling Dad is going to be doing most of the work here.
0:41:49 > 0:41:50Hope you're prepared, Ted,
0:41:50 > 0:41:53unless Daniel could manage working around the clock, that is.
0:41:53 > 0:41:56# All day and all of the night. #
0:41:56 > 0:41:59Tell me what this house is going to look like when you've done it?
0:41:59 > 0:42:02What colour walls, what's the furnishings,
0:42:02 > 0:42:04what's the feel of the house going to be?
0:42:04 > 0:42:06I don't know. Kim knows all of that.
0:42:06 > 0:42:09So Kim's the designer, she'll be choosing the colour,
0:42:09 > 0:42:11- you'll just be putting the paint on the walls?- Exactly,
0:42:11 > 0:42:14cos knowing me I'll end up choosing colours that clash and don't go
0:42:14 > 0:42:17and stripes with spots and, yeah.
0:42:17 > 0:42:18It's best to leave me out of it.
0:42:18 > 0:42:21- It's been brilliant meeting you today.- Thank you very much.
0:42:21 > 0:42:24I'm really excited to see the outcome and to see what you
0:42:24 > 0:42:26and Kim and your dad make of this property.
0:42:26 > 0:42:30- Yeah, we'll see.- Good luck. - Thank you very much.- Thank you.
0:42:30 > 0:42:34So Daniel has only given himself two weeks to do all the work here.
0:42:34 > 0:42:37He's going to be one busy man
0:42:37 > 0:42:41and that is without working his 72-hour week.
0:42:41 > 0:42:43Will this be a happy home for him
0:42:43 > 0:42:46and girlfriend Kim and will they smash it?
0:42:46 > 0:42:50Join me later in the programme and you can find out how they get on.
0:42:52 > 0:42:54Well, we've seen property number one.
0:42:54 > 0:42:57How's the journey been at the other two properties?
0:42:57 > 0:42:59Has it been a smooth ride or a bit of a bumpy journey?
0:42:59 > 0:43:02It's time to find out.
0:43:02 > 0:43:05It was just outside the South Yorkshire town of Doncaster
0:43:05 > 0:43:10in Eglinton that we first came across this three bedroom terraced house.
0:43:10 > 0:43:13It was dilapidated, run down, neglected,
0:43:13 > 0:43:17with boarded up and broken windows.
0:43:17 > 0:43:19This house was in a pretty sorry state,
0:43:19 > 0:43:23but that's nothing extraordinary for an auction property.
0:43:23 > 0:43:25However, there was one unusual thing about the house
0:43:25 > 0:43:30and that was the guide price of just £12,000.
0:43:30 > 0:43:34It was that potential buying price that attracted local businessman
0:43:34 > 0:43:39Graeme, who snapped it up for what still seems like a bargain of £26,500.
0:43:40 > 0:43:44For Graeme, this house represented something different
0:43:44 > 0:43:46from previous property purchases.
0:43:51 > 0:43:53I've done this for about ten years.
0:43:53 > 0:43:56I've got properties, and commercial and domestic properties,
0:43:56 > 0:44:00but a number of colleagues approached me and said,
0:44:00 > 0:44:02"We want to get involved in a pension fund,"
0:44:02 > 0:44:05so we threw some money at it, there's four of us,
0:44:05 > 0:44:08we all work together and we're doing it like a ten-year plan, really,
0:44:08 > 0:44:10for their pensions,
0:44:10 > 0:44:13but this particular one is one that we want to knock about
0:44:13 > 0:44:17and that's why we've chosen the low end of the market.
0:44:17 > 0:44:18Knock about, indeed.
0:44:18 > 0:44:22They had plans to take down walls, move doors along,
0:44:22 > 0:44:26along with essential jobs such as plastering, new boiler, electrics,
0:44:26 > 0:44:30a fence in the garden, and some glass in the windows would be nice.
0:44:32 > 0:44:37Graeme and co had set themselves a budget of 12 to £13,000
0:44:37 > 0:44:39to contract out the refurbishment work.
0:44:39 > 0:44:43They'd hoped to get it completed in just five weeks,
0:44:43 > 0:44:45but now just over three months later we're back.
0:44:53 > 0:44:54Well, look at that.
0:44:54 > 0:44:58It's no longer looking a little grey, it's clean and cream
0:44:58 > 0:45:01and looks loved with new double glazing.
0:45:01 > 0:45:04They have bricked up one of the windows though, I wonder why?
0:45:09 > 0:45:10Ah, that's why.
0:45:10 > 0:45:12They've removed the corridor,
0:45:12 > 0:45:15opening up the front reception room which brings in more light to
0:45:15 > 0:45:18the living room and gives it a much more open-plan feel.
0:45:20 > 0:45:22We've knocked the house about quite a bit.
0:45:22 > 0:45:27We've had a full rewire, we've knocked a partition wall out
0:45:27 > 0:45:30when you come in through the front door,
0:45:30 > 0:45:33we've moved a doorway with the entrance to the kitchen.
0:45:35 > 0:45:39And a complete overhaul in the kitchen has finished it off nicely.
0:45:39 > 0:45:42Upstairs, the knocking about has continued,
0:45:42 > 0:45:46with the immersion tank removed and the combi boiler installed.
0:45:46 > 0:45:49They've created enough space for a bath and a shower.
0:45:50 > 0:45:55The three good sized bedrooms are now bright and fresh, it's amazing
0:45:55 > 0:45:59what a lick of paint, carpets and, oh, yes, glass in windows can do.
0:46:01 > 0:46:06So the house inside is looking great, but remember that sorry back garden?
0:46:13 > 0:46:17Ah, that's the ticket. Order where there once was chaos.
0:46:17 > 0:46:21But how involved have Graeme and co been in this transformation?
0:46:23 > 0:46:26Out of the four of us, none of us have really got their hands dirty
0:46:26 > 0:46:31apart from this morning, just having a quick wipe round with the cloth.
0:46:31 > 0:46:33Careful, Graeme, don't overdo it.
0:46:33 > 0:46:37Mind you, the hands off approach seems to have worked wonders here.
0:46:37 > 0:46:40They must be pleased with the results.
0:46:40 > 0:46:43Two of the guys have not even been to have a look at the finished
0:46:43 > 0:46:47article yet, but Matt, one of the partners, he's had a look
0:46:47 > 0:46:49and he's fairy happy with it.
0:46:49 > 0:46:51There's a few snags still to do
0:46:51 > 0:46:53cos we only got it finished at the weekend.
0:46:53 > 0:46:56So two of the business partners haven't seen the changes to the house,
0:46:56 > 0:46:59but there was something else they all missed out on.
0:46:59 > 0:47:03# I didn't see it coming. #
0:47:03 > 0:47:07Unfortunately we didn't read the legal pack, but we will from now on.
0:47:07 > 0:47:10We discovered that it were leasehold rather than freehold,
0:47:10 > 0:47:13but because it's got 84 years on it I don't think it's going
0:47:13 > 0:47:16to bother us too much with our ten-year plan.
0:47:16 > 0:47:18Luckily the plan is to let this place out
0:47:18 > 0:47:22and for it to generate income over the next ten years.
0:47:22 > 0:47:25A house being leasehold isn't disastrous,
0:47:25 > 0:47:28but it is a reminder that you should read the legal pack.
0:47:28 > 0:47:32Let's hope there were no more mistakes on the budget.
0:47:32 > 0:47:35The original budget was 12,000.
0:47:35 > 0:47:39We've overspent slightly and it's cost us another £1,200,
0:47:39 > 0:47:42so 13,200 in total.
0:47:42 > 0:47:47£13,200 on top of their 26,500 purchase price
0:47:47 > 0:47:51will take their total cost to just below £40,000,
0:47:51 > 0:47:55which seems amazing value for a fully refurbished three bed house.
0:47:56 > 0:47:59What do two local estate agents think?
0:47:59 > 0:48:03Firstly, the agent who saw it three months ago.
0:48:03 > 0:48:06There's obviously been quite a bit of work done, I can see that
0:48:06 > 0:48:09they've rearranged the layout to make it more practical.
0:48:09 > 0:48:12The standard of the finish is very good.
0:48:12 > 0:48:14They've obviously thought about what they've done.
0:48:14 > 0:48:18New doors, new bathroom, new kitchen. Overall, very good.
0:48:18 > 0:48:21Main selling strengths are the size of the back yard
0:48:21 > 0:48:24and really impressive at the size of the bedrooms.
0:48:24 > 0:48:26It would have been perhaps a bit better
0:48:26 > 0:48:28if you'd knocked out the wall in-between the dining
0:48:28 > 0:48:32and the kitchen and just opened it up a little bit more,
0:48:32 > 0:48:35but apart from that, I think the layout is very good.
0:48:35 > 0:48:38Yes, maybe they could have opened the kitchen up,
0:48:38 > 0:48:40but it's also a balance between cost and return.
0:48:40 > 0:48:43So have they got their figures right on a house
0:48:43 > 0:48:46they've invested nearly 40 grand into?
0:48:47 > 0:48:50So in the sales market I'd expect this three bedroom terrace property
0:48:50 > 0:48:53to achieve 55 to £60,000.
0:48:53 > 0:48:59I would put this property on at £65,000 to achieve £60,000.
0:48:59 > 0:49:03Well, that gives us a net profit if we sold it of about 18,000,
0:49:03 > 0:49:06which is good, we're pleased with that.
0:49:06 > 0:49:08Net profit is the bottom line.
0:49:08 > 0:49:11That's the profit you make after all the expenses have been subtracted,
0:49:11 > 0:49:16so that gives them a nice bit of equity into their pension pot.
0:49:16 > 0:49:19But for them the crucial figure is the rental value.
0:49:20 > 0:49:23In the rental market, I'd be looking for this property to achieve
0:49:23 > 0:49:27350 to £375 per calendar month.
0:49:27 > 0:49:31I believe this property would achieve £400 per calendar month.
0:49:31 > 0:49:35The values for rental are about what we expected
0:49:35 > 0:49:38and that gives us a yield of about 9-10%,
0:49:38 > 0:49:40which we're more than happy with.
0:49:40 > 0:49:44In fact, if they get that top valuation of £400 per calendar month,
0:49:44 > 0:49:48they might even achieve rental yields of around 12%.
0:49:48 > 0:49:53So from a money-making point of view, this looks like a success.
0:49:53 > 0:49:55What's next for Graeme and his colleagues?
0:49:57 > 0:50:00We've bought one on the street opposite to this one
0:50:00 > 0:50:03which is in a similar state of disrepair
0:50:03 > 0:50:07and we're going to do exactly the same with that one as well.
0:50:07 > 0:50:09The original plan is for ten years
0:50:09 > 0:50:13and that's still the aim of this investment property business,
0:50:13 > 0:50:17and hopefully it will let us all retire on a beach somewhere.
0:50:17 > 0:50:19Yes, well, that would be nice,
0:50:19 > 0:50:22but for the moment, sunny Doncaster will just have to do.
0:50:33 > 0:50:36Strood in Kent was the place where we first found a two bed,
0:50:36 > 0:50:41end of terrace house that had more of its fair share of problems.
0:50:41 > 0:50:42Firstly, its location.
0:50:42 > 0:50:45Well, it was not only next to a busy junction,
0:50:45 > 0:50:48it also had a railway line running behind it.
0:50:48 > 0:50:51And then, there was potentially some structural issues,
0:50:51 > 0:50:54with a crack running down the front of the house.
0:50:54 > 0:50:58On top of that, it was leasehold, quite unusual for a house.
0:50:58 > 0:51:01But none of these things put off West London-based security guard
0:51:01 > 0:51:05Daniel, who viewed this house slightly differently.
0:51:05 > 0:51:08As soon as I saw this house in the catalogue,
0:51:08 > 0:51:11- I just sort of fell in love with it. - Why did you fall in love with it?
0:51:11 > 0:51:13I mean, this is not everybody's dream.
0:51:13 > 0:51:17The garden's quite big, you've got the whole side of the house as well,
0:51:17 > 0:51:21and obviously inside, it isn't too major works to be done.
0:51:21 > 0:51:25Now interestingly, you're not from this part of the world.
0:51:25 > 0:51:27Why did you decide to buy here?
0:51:27 > 0:51:29Mainly because the price was right.
0:51:29 > 0:51:33Obviously when you live in London then prices just soar through the roof,
0:51:33 > 0:51:36so I couldn't afford it, but the plan is,
0:51:36 > 0:51:39live here for a year or two, see how it goes,
0:51:39 > 0:51:43see how work goes down here, and then gradually move closer.
0:51:43 > 0:51:47# Move closer. #
0:51:47 > 0:51:49And purchasing further afield from London meant
0:51:49 > 0:51:54he was able to buy this two bedroom house for £130,000.
0:51:54 > 0:51:58He and girlfriend Kim hope that a budget of ten grand would be enough
0:51:58 > 0:52:00and, with lots of help from his dad Ted
0:52:00 > 0:52:01who's been in the building trade,
0:52:01 > 0:52:04that he could turn it around in just two weeks.
0:52:04 > 0:52:08This seemed like a mighty tall order considering he generally worked
0:52:08 > 0:52:12for 72 hours a week in his security job.
0:52:13 > 0:52:17Two months later, we're back with Daniel to check on his progress.
0:52:23 > 0:52:28Wow! I like that. From the outside, it's now on the road to recovery.
0:52:29 > 0:52:32Daniel's surveyor friend advised him the crack was superficial,
0:52:32 > 0:52:36so that has now been repaired and new windows and doors installed.
0:52:38 > 0:52:42Fencing now divides the outside space and in the back garden
0:52:42 > 0:52:45there's decking and a new turf has been laid.
0:52:45 > 0:52:47And inside...
0:52:52 > 0:52:55Well, the new flooring and decoration really lifts the lounge.
0:52:55 > 0:52:58And what about that kitchen?
0:53:03 > 0:53:07In the kitchen, we gave the walls a fresh paint, the ceiling,
0:53:07 > 0:53:11there's a new door. This part of the kitchen we've saved.
0:53:11 > 0:53:13When we bought it, it was already here,
0:53:13 > 0:53:16so that good cos we've saved some budget.
0:53:16 > 0:53:21We've done floor and wall tiles and all of this side is brand-new.
0:53:26 > 0:53:29And upstairs, the house continues to impress with
0:53:29 > 0:53:31the two bedrooms finished off nicely.
0:53:38 > 0:53:41And the bathroom's looking rather plush,
0:53:41 > 0:53:44but it's the back garden that really caught my eye.
0:53:45 > 0:53:52Outside in the garden, we have new decking, new grass,
0:53:52 > 0:53:56a bit of a barbecue for the summer.
0:53:56 > 0:53:58We've put all fencing all around to give a bit of privacy.
0:53:58 > 0:54:01Daniel was really excited about tackling the garden
0:54:01 > 0:54:06and the outside space, so was this his handiwork?
0:54:06 > 0:54:08My dad done the majority of the work.
0:54:08 > 0:54:12I couldn't do work due to unforeseen circumstances.
0:54:12 > 0:54:17As an experienced builder, dad Ted was always going to do most of
0:54:17 > 0:54:21the work, but Daniel had hoped to help out and learn new skills.
0:54:21 > 0:54:25It seems that's not all that's changed in Daniel's initial plans.
0:54:25 > 0:54:27Originally we were planning to move in,
0:54:27 > 0:54:31but as the work was going on, my dad gave me a call
0:54:31 > 0:54:35that someone walks past and noticed, I think it was an investor,
0:54:35 > 0:54:38and he put an offer on the house.
0:54:39 > 0:54:42Well, in fact, he's been offered £170,000 for the house,
0:54:42 > 0:54:45and that just seemed too good an offer to turn down.
0:54:45 > 0:54:49But is Daniel disappointed not to be making this his new home?
0:54:49 > 0:54:50No, not really.
0:54:50 > 0:54:54I didn't really want to move too far from my mum's anyway.
0:54:54 > 0:54:59We've actually bought a flat in London, but with a mortgage,
0:54:59 > 0:55:02so we get the keys on Friday.
0:55:03 > 0:55:04Yes, it is understandable.
0:55:04 > 0:55:09This would have been a big move away from friends, family and work.
0:55:09 > 0:55:12# It's not right, it's not right for you
0:55:15 > 0:55:18# If you really have to think about it. #
0:55:18 > 0:55:22So perhaps getting a flat nearer home does make more sense,
0:55:22 > 0:55:25but has this house helped to fund the flat purchase?
0:55:25 > 0:55:30What we spent was 8,400, roughly.
0:55:30 > 0:55:348,400 sounds pretty good for all the refurbishment work.
0:55:34 > 0:55:36Take a bow, Ted.
0:55:36 > 0:55:39But it turned out there was a condition lurking in the legal pack
0:55:39 > 0:55:41that added a rather significant cost.
0:55:41 > 0:55:44When we actually bought this house, there was a shock
0:55:44 > 0:55:46that we had to give 4% to the council straightaway,
0:55:46 > 0:55:51which is OK cos we got it a bit under budget what I planned to bid
0:55:51 > 0:55:58it for, but, yeah, I'll definitely next time read the legal pack.
0:55:58 > 0:56:01Well, how many times do I say it? Read the legal pack.
0:56:01 > 0:56:06And in this case, it cost Daniel another £5,200.
0:56:06 > 0:56:10So including his £130,000 purchase price,
0:56:10 > 0:56:15his total spend here will be just below £144,000.
0:56:15 > 0:56:17But with one prospective buyer already lined up,
0:56:17 > 0:56:20is there likely to be more competition for it?
0:56:20 > 0:56:23What do two local estate agents think?
0:56:23 > 0:56:25The property itself is actually quite nice.
0:56:25 > 0:56:28It's all double glazed, it's got central heating.
0:56:28 > 0:56:31I think it will make a nice purchase for somebody.
0:56:31 > 0:56:33I think the property's a very smart, little house.
0:56:33 > 0:56:37It's in a very busy spot, but it's also in a very convenient spot.
0:56:37 > 0:56:41It has everything that you would need for a couple or a young family.
0:56:41 > 0:56:44I'm not too sure about the location, to be honest. It's very busy.
0:56:44 > 0:56:46We've got a railway line at the back
0:56:46 > 0:56:49and a roundabout at the end of the road.
0:56:49 > 0:56:52This particular spot is a major junction,
0:56:52 > 0:56:55and that may have a detrimental effect on the appeal
0:56:55 > 0:56:58for, particularly, buyers, not necessarily so with tenants.
0:56:58 > 0:57:03Yes, this may suit an investor more who wants it as a potential rental
0:57:03 > 0:57:07vehicle, with the agents estimating a monthly rental value of £825,
0:57:07 > 0:57:11which would generate a yield of around 5%.
0:57:11 > 0:57:16But with a £170,000 offer already on the table,
0:57:16 > 0:57:20is that a good price for the house in this current market?
0:57:20 > 0:57:23If I was asked to market this property today,
0:57:23 > 0:57:26I would quote a figure of offers in excess of £165,000
0:57:26 > 0:57:32and expect it to realise the figure of approximately £170,000.
0:57:32 > 0:57:38I think a resale value on this property would be around £170,000.
0:57:38 > 0:57:43And if that deal does go through, the agreed 170,000,
0:57:43 > 0:57:47that could see Daniel with a pre-tax profit of just over £26,000,
0:57:47 > 0:57:50and that will help towards his new flat purchase.
0:57:50 > 0:57:52So what next?
0:57:52 > 0:57:56The next thing is to move into our flat
0:57:56 > 0:57:59and then go to the next auction and buy another one.
0:58:01 > 0:58:05Well, it's always nice when an auction buy ends in a good result.
0:58:05 > 0:58:08Yes, but as we've learnt over the years, that's not always the case.
0:58:08 > 0:58:11Yes. Join us next time for more highs and lows on Homes Under The Hammer.
0:58:11 > 0:58:14- Goodbye.- Goodbye.- Goodbye.