0:00:02 > 0:00:04Hello. If you've got a little bit of money to invest, well,
0:00:04 > 0:00:05don't hide it under the mattress.
0:00:05 > 0:00:08How about investing it in property instead?
0:00:08 > 0:00:09And that could be a wise move,
0:00:09 > 0:00:11and I know somewhere you might just get more for your money.
0:00:11 > 0:00:13Yes, where do you think? I know.
0:00:13 > 0:00:15Head down to your local property auction.
0:00:40 > 0:00:43There's no one reason why people buy at auction.
0:00:43 > 0:00:46Maybe it's a new home or a regular rental income.
0:00:46 > 0:00:48Yeah, perhaps they're looking to the future
0:00:48 > 0:00:50and fancy property as a bit of a pension pot.
0:00:50 > 0:00:53Yes, there are many auction stories to tell.
0:00:53 > 0:00:57So here are the properties we've got lined up for you on today's show.
0:00:58 > 0:01:00Up first, in Donnington, Telford,
0:01:00 > 0:01:03Lewis and Annette and mindful of errors past.
0:01:03 > 0:01:05And he bought the house, but he bought the wrong one.
0:01:05 > 0:01:07HE GASPS
0:01:07 > 0:01:11While in Ipswich, this modern office space gets my brain working.
0:01:11 > 0:01:14This has consent to go from commercial to residential,
0:01:14 > 0:01:17so my mind's working overtime.
0:01:18 > 0:01:22And my mind is just...gone when it gets to this mid terrace in Wales.
0:01:22 > 0:01:25I mean, does it really matter what it's like?
0:01:25 > 0:01:27It's a house...for 12,000 quid!
0:01:29 > 0:01:32- 760...- All these properties have been sold at auction.
0:01:32 > 0:01:35We'll find out who bought them and what they paid for them
0:01:35 > 0:01:37when they went under the hammer.
0:01:41 > 0:01:44Donnington, a suburb of the Shropshire town of Telford,
0:01:44 > 0:01:46may have an industrial heritage,
0:01:46 > 0:01:49but in more recent years it has offered some employment
0:01:49 > 0:01:51through the Ministry of Defence,
0:01:51 > 0:01:56and that is about to improve with a MoD army logistic centre being built
0:01:56 > 0:02:00which will mean a boost to both jobs and the local economy.
0:02:00 > 0:02:04Sounds like it could be a good time to invest in a Donnington property.
0:02:04 > 0:02:07So, in this popular residential area,
0:02:07 > 0:02:10just around the corner from some handy local shops
0:02:10 > 0:02:12is the property I'm here to see.
0:02:12 > 0:02:15The auction catalogue said it was in need of modernisation.
0:02:15 > 0:02:18If I had £1 for every time I said that on Homes Under The Hammer...
0:02:18 > 0:02:21But £45,000-plus was the guide price
0:02:21 > 0:02:24for this three-bed mid terrace.
0:02:24 > 0:02:26It looks neat and tidy at the front,
0:02:26 > 0:02:29but there's no parking here which isn't ideal.
0:02:29 > 0:02:32Still, the resident cat looks happy enough.
0:02:34 > 0:02:36So, what have we got? OK.
0:02:36 > 0:02:40That's a good start, a nice little porch area here.
0:02:40 > 0:02:42And then that feeling of size,
0:02:42 > 0:02:45almost surprising size, continues as you come in here.
0:02:45 > 0:02:49Wow! A really nice big entrance area.
0:02:49 > 0:02:52That really gives a good feel to the place straightaway.
0:02:52 > 0:02:53Stairs to your bedrooms there.
0:02:53 > 0:02:55Through to the kitchen.
0:02:55 > 0:03:00Another really good feature for the house, a double aspect living room.
0:03:00 > 0:03:04Lots of light coming in here. Obviously it needs redecoration.
0:03:04 > 0:03:06Looks like you've got central heating, which is good news.
0:03:06 > 0:03:09But in terms of the layout, it's working for me so far.
0:03:09 > 0:03:11Big cupboard there.
0:03:11 > 0:03:15All in all, it's a very good start.
0:03:16 > 0:03:19Yep, double glazing, central heating, tick.
0:03:19 > 0:03:22Flooring will need sorting, as will the decoration.
0:03:22 > 0:03:25And the kitchen, well, you could clean it up.
0:03:25 > 0:03:27New doors on the units, perhaps,
0:03:27 > 0:03:30though I'd be inclined to replace it completely.
0:03:30 > 0:03:33The downstairs loo and utility area certainly need addressing,
0:03:33 > 0:03:38but are useful additional space nevertheless.
0:03:38 > 0:03:43So, upstairs, and the very workable practical layout continues.
0:03:43 > 0:03:45A bathroom and loo there, decent size.
0:03:45 > 0:03:47And then three bedrooms.
0:03:47 > 0:03:49First one at the back of the property.
0:03:49 > 0:03:52Nice floral wallpaper, but in pretty good condition.
0:03:52 > 0:03:54Obviously someone's going to have to spend money on carpets
0:03:54 > 0:03:56cos there currently aren't any.
0:03:56 > 0:03:58But again, they were probably in a bit of a state,
0:03:58 > 0:04:01so nice that somebody else has got rid of them for you.
0:04:01 > 0:04:03Second bedroom there. In-built storage.
0:04:03 > 0:04:05Another storage cupboard on the landing there.
0:04:05 > 0:04:08In a house like this, fantastic to have all that extra storage.
0:04:08 > 0:04:13And then finally... A bit weird. ..final bedroom.
0:04:13 > 0:04:15I'm not sure it's been decorated to my taste.
0:04:15 > 0:04:18I think this would be more suitable in the bathroom. Oh, gosh!
0:04:18 > 0:04:20It's got woodchip underneath it as well.
0:04:20 > 0:04:23All that said, what you've got here is a real practical house.
0:04:23 > 0:04:26It doesn't need too much work to sort it out. I like it.
0:04:26 > 0:04:29It's been a while since I've seen this kind of material
0:04:29 > 0:04:31on a bedroom wall.
0:04:31 > 0:04:36I've heard of having a night on the tiles, but surrounded by them? Hm.
0:04:36 > 0:04:38Well, that's a new one on me.
0:04:38 > 0:04:40Once they're removed and the floral wallpaper is gone,
0:04:40 > 0:04:44what lies beneath the surface of this house should be all right.
0:04:44 > 0:04:47# Underneath it all
0:04:47 > 0:04:51# I'm really lucky
0:04:51 > 0:04:53# Underneath it all... #
0:04:53 > 0:04:54And there's another area
0:04:54 > 0:04:58which might benefit from removing a layer or two.
0:04:58 > 0:05:00Well, at the back of the property
0:05:00 > 0:05:05what you would describe as a low-maintenance garden.
0:05:05 > 0:05:07Basically it's mostly concrete and slabs.
0:05:07 > 0:05:10Not aesthetically very pleasing or a particularly good place
0:05:10 > 0:05:14for kids to play, so I'd definitely spend some time and effort out here
0:05:14 > 0:05:17turning it into a nice family space.
0:05:17 > 0:05:19But...the parking issue.
0:05:19 > 0:05:21Well, thankfully that is resolved
0:05:21 > 0:05:25cos out here you have access to this space to park your car.
0:05:25 > 0:05:27Thank goodness for that.
0:05:27 > 0:05:31And I guess what that means is that the front entrance
0:05:31 > 0:05:33really becomes a bit defunct.
0:05:33 > 0:05:34You would basically park your car here
0:05:34 > 0:05:37and use that as the entrance into the property.
0:05:37 > 0:05:39If this is going to be your main entrance
0:05:39 > 0:05:43then it's even more important that it should be made to look appealing.
0:05:43 > 0:05:46I know I'm going on about this outside space,
0:05:46 > 0:05:49but it is a waste, and I'm getting more green-minded
0:05:49 > 0:05:52the more I see gardens concreted over. Come on,
0:05:52 > 0:05:56a bit of green would be nature friendly and kid friendly too.
0:05:56 > 0:06:00What does a local estate agent make of this property
0:06:00 > 0:06:03guided at £45,000-plus?
0:06:04 > 0:06:07This street is very affordable, I would say.
0:06:07 > 0:06:11They're largely ex-local authority or bought privately to rent out.
0:06:11 > 0:06:13Most amenities are within easy walking distance.
0:06:13 > 0:06:16There's also bus routes very close by.
0:06:16 > 0:06:17Everything you need, really.
0:06:17 > 0:06:20Right, but in terms of this property,
0:06:20 > 0:06:25what does he think needs changing to attract a local market?
0:06:25 > 0:06:27I would do kitchen, bathroom,
0:06:27 > 0:06:31just redecoration to a relatively plain standard
0:06:31 > 0:06:33for the rental market, primarily.
0:06:34 > 0:06:37This house was guided at £45,000-plus,
0:06:37 > 0:06:40but fully refurbished, what might it be worth?
0:06:40 > 0:06:44I would expect this to achieve, once renovated,
0:06:44 > 0:06:47somewhere in the region of about £85,000 to £87,000.
0:06:47 > 0:06:51Well, that's encouraging, but what about its rental potential?
0:06:51 > 0:06:53Once renovated, on the rental market,
0:06:53 > 0:06:54I would expect this to achieve
0:06:54 > 0:06:57somewhere in the region of £585 per calendar month.
0:07:01 > 0:07:03So, a good little property here.
0:07:03 > 0:07:06Yes, it needs a bit of sorting out - decoration, new carpets,
0:07:06 > 0:07:07new kitchen and bathroom obviously.
0:07:07 > 0:07:10But apart from that, do that work and you've got yourself
0:07:10 > 0:07:13a nice little family home or a rental investment.
0:07:13 > 0:07:17Let's see who went for it when it went under the hammer.
0:07:19 > 0:07:22Lot 31. Back to Telford.
0:07:22 > 0:07:23It's a mid townhouse,
0:07:23 > 0:07:25three bedrooms, is in need of modernising.
0:07:25 > 0:07:2740, can I say?
0:07:27 > 0:07:3040 bid, seated. Thank you. At £40,000.
0:07:30 > 0:07:3442, can I see now? 42 on the phone. 42.
0:07:34 > 0:07:3644. 46.
0:07:37 > 0:07:4048. 50.
0:07:40 > 0:07:4252.
0:07:42 > 0:07:4554. 56.
0:07:45 > 0:07:4658 on the phone.
0:07:46 > 0:07:49Yeah. 58. 60, sir?
0:07:49 > 0:07:53No. One? 59. 59.
0:07:53 > 0:07:5560 on the phone.
0:07:55 > 0:07:5860. You sure?
0:07:58 > 0:08:0060,000. The bid's on the phone.
0:08:00 > 0:08:0261 anywhere else?
0:08:02 > 0:08:04If not, £60,000 once...
0:08:04 > 0:08:07£60,000 twice...
0:08:07 > 0:08:11Third and final time, at £60,000...
0:08:12 > 0:08:14On the phone. 60,000.
0:08:19 > 0:08:21And on the other end of the telephone line,
0:08:21 > 0:08:25that £60,000 bid for the three-bed Donnington property
0:08:25 > 0:08:29was made by construction site engineer Lewis.
0:08:29 > 0:08:32Although Lewis hasn't been on the show before,
0:08:32 > 0:08:36his mum Annette and stepdad Mike are familiar faces to the programme,
0:08:36 > 0:08:39having appeared back in June, 2013, when they bought
0:08:39 > 0:08:43a two-bed terraced house in the nearby town of Wellington.
0:08:43 > 0:08:45I caught up with Annette
0:08:45 > 0:08:48and Lewis to find out their plans for this one.
0:08:48 > 0:08:50Annette, Lewis, good to meet you both.
0:08:50 > 0:08:52In fact, good to see you again, actually.
0:08:52 > 0:08:55It's a while ago that we monitored another property you did.
0:08:55 > 0:08:57That's right, yes.
0:08:57 > 0:08:59What was the story behind that one? Remind us.
0:08:59 > 0:09:03Well, that one I bought at auction and gave as a gift to my son,
0:09:03 > 0:09:05and he wasn't involved in any of it
0:09:05 > 0:09:08until it was finished and then he got it.
0:09:08 > 0:09:13But he's now got the bug, so he's bought this one
0:09:13 > 0:09:15- and I'm still here to help him. - Great.
0:09:15 > 0:09:17Lewis, this is your sort of first...?
0:09:17 > 0:09:20Well, actually, this one will be my fourth.
0:09:20 > 0:09:23But was it that thing that your mum did for you that really got you...?
0:09:23 > 0:09:25Oh, definitely, yeah. Yeah, she's really got me into it.
0:09:25 > 0:09:27# I said, you wanna be starting something
0:09:27 > 0:09:29# You gotta be starting something
0:09:29 > 0:09:31# I said, you wanna be starting something
0:09:31 > 0:09:33# You gotta to be starting something... #
0:09:33 > 0:09:36Oh, boy, Annette really has started something, with Lewis planning to do
0:09:36 > 0:09:40a couple of houses a year with the aim to build a portfolio
0:09:40 > 0:09:43of ten properties over the next few years.
0:09:44 > 0:09:47So why this particular house?
0:09:47 > 0:09:51Well, I viewed ten properties in one day and this was the first one
0:09:51 > 0:09:53I looked at and I thought it looked quite good.
0:09:53 > 0:09:56But I had a figure in mind for all of the properties I'd seen
0:09:56 > 0:10:00and I bid up to that figure for all of them until I got one.
0:10:00 > 0:10:03And I think this was about the fifth one I bid on.
0:10:03 > 0:10:04It was quite interesting in a way
0:10:04 > 0:10:07because Lewis bid for this by telephone.
0:10:07 > 0:10:11And the last time he tried doing this, he did it online,
0:10:11 > 0:10:12bought the house, but he bought the wrong one.
0:10:12 > 0:10:15- HE GASPS - What?!
0:10:15 > 0:10:17Yeah, it's embarrassing, really.
0:10:17 > 0:10:20Bidding online, there's sometimes a bit of a delay
0:10:20 > 0:10:22and there was a bit of a delay
0:10:22 > 0:10:26and then the house came up which was the one that I wanted to bid on,
0:10:26 > 0:10:28or I thought it was, so I bid on it
0:10:28 > 0:10:30and then it wasn't the correct house.
0:10:30 > 0:10:33- What did you do? - I panicked, obviously.- No kidding.
0:10:33 > 0:10:35- You just bought a house you didn't want.- Yeah.
0:10:35 > 0:10:38And I phoned up the place where the auction was taking place
0:10:38 > 0:10:41which was in Stoke and managed to get hold of somebody
0:10:41 > 0:10:44and they said that because that wasn't the house
0:10:44 > 0:10:46that I had expressed an interest in bidding on
0:10:46 > 0:10:49that I wouldn't be able to buy it, so I hadn't actually bought it.
0:10:49 > 0:10:51He was so lucky.
0:10:52 > 0:10:57Auction houses generally require prospective buyers
0:10:57 > 0:10:59to pre-register specifically for the properties
0:10:59 > 0:11:02they're interested in when bidding online.
0:11:02 > 0:11:05So Lewis was saved from making an expensive mistake,
0:11:05 > 0:11:10and if possible I would advise you to go to the auction in person.
0:11:10 > 0:11:13You get a much better feel of how bidding on a lot is going.
0:11:13 > 0:11:16Not only that, it's really exciting.
0:11:16 > 0:11:19So what was it about this one that you really liked?
0:11:19 > 0:11:23Well, it doesn't look like there's too much work to do, really.
0:11:23 > 0:11:25It's in reasonably good condition.
0:11:25 > 0:11:26We're hoping we can keep the kitchen.
0:11:26 > 0:11:28We're not sure about that at the moment.
0:11:28 > 0:11:31New carpets and flooring throughout. New bathroom suite.
0:11:31 > 0:11:33And it's got double-glazed windows
0:11:33 > 0:11:37which hopefully just need a bit of TLC and they'll be OK.
0:11:37 > 0:11:40So I'm hoping it will be just decoration,
0:11:40 > 0:11:43won't take too long and then it will rent out for a reasonable price.
0:11:43 > 0:11:46- What's the timescale?- Hoping to get it done in about two months.
0:11:46 > 0:11:50- And the budget?- £4,000.
0:11:50 > 0:11:52- Wow. OK.- Maximum.
0:11:52 > 0:11:55Well, that's providing we don't have to buy a new boiler
0:11:55 > 0:11:57- or something like that.- Yeah.
0:11:57 > 0:12:00And you must be really thrilled that you've inspired your son
0:12:00 > 0:12:03to get into this, and hopefully with big beneficial effects.
0:12:03 > 0:12:05Well, I am.
0:12:05 > 0:12:08- But it does mean the work comes my way.- Oh, does it? Why?
0:12:08 > 0:12:12Well, because Lewis is at work full-time,
0:12:12 > 0:12:16so myself and Mike will be the ones doing the bulk of the work.
0:12:16 > 0:12:18- Mike, your husband?- Hm.
0:12:18 > 0:12:20So who's going to the boss in this project?
0:12:20 > 0:12:22I would like to be the boss,
0:12:22 > 0:12:25but I'm pretty sure my mum just won't allow it to happen.
0:12:25 > 0:12:28So Mum and stepdad are going to do all the work,
0:12:28 > 0:12:31- what are you going to do? - I'm going to do plenty of work.
0:12:31 > 0:12:34They think they do the bulk of the work.
0:12:34 > 0:12:36I think in reality Mike does the bulk of the work.
0:12:36 > 0:12:38Mike does the bulk of the work.
0:12:38 > 0:12:41I remember from last time you were a little bit...
0:12:41 > 0:12:44- What's the word? Bossy. That was the word.- Yes.
0:12:44 > 0:12:48- Are you still sort of...? - Oh, yes. He still gets a list.
0:12:48 > 0:12:51Well, listen, congratulations. Good luck with it.
0:12:51 > 0:12:53I look forward to seeing how you get on.
0:12:53 > 0:12:54Nice to meet you.
0:12:57 > 0:13:01So, thanks to mum Annette, Lewis has got the property bug
0:13:01 > 0:13:03and on with his fourth house.
0:13:03 > 0:13:06At least he got to choose what he wanted with this one.
0:13:06 > 0:13:09Who will be the boss doing it up though?
0:13:09 > 0:13:11What do you think?
0:13:11 > 0:13:14Well, we can see how they all get on later in the show.
0:13:20 > 0:13:23This is the market town of Ipswich in Suffolk.
0:13:23 > 0:13:27And to be honest, thanks to the renovation of its famous dockside,
0:13:27 > 0:13:30Ipswich normally looks a lot prettier than this.
0:13:30 > 0:13:33But of course I decided to turn up when it was bucketing with rain,
0:13:33 > 0:13:35so the boats in the marina could have easily
0:13:35 > 0:13:37sailed down the high street.
0:13:39 > 0:13:41# So sad
0:13:41 > 0:13:44# Don't look so sad, Marina
0:13:44 > 0:13:47# Save it for a rainy day
0:13:47 > 0:13:51# Save it for a rainy day
0:13:51 > 0:13:55# Save it for a rainy day. #
0:13:55 > 0:13:58In the centre of town, tucked away in a little courtyard,
0:13:58 > 0:14:02the property I'm here to see is an office block over three floors
0:14:02 > 0:14:04that has planning for residential use.
0:14:04 > 0:14:08It's at a price of £90,000 to £110,000,
0:14:08 > 0:14:10and I'm going to take a look.
0:14:11 > 0:14:13Although it's currently a commercial property,
0:14:13 > 0:14:15the exterior actually looks quite homely.
0:14:15 > 0:14:19And as the entrance is off the main street, it certainly feels peaceful
0:14:19 > 0:14:23for a town centre location. Let's have a look inside.
0:14:24 > 0:14:28OK, this is clearly businesslike.
0:14:28 > 0:14:31Very commercial. Reception area there.
0:14:31 > 0:14:35And a kitchenette through there and a toilet over there.
0:14:35 > 0:14:37So, yes, definitely business-minded here.
0:14:37 > 0:14:40Let's see what we can find out upstairs.
0:14:40 > 0:14:43OK, so all that strip lighting and office furniture
0:14:43 > 0:14:45isn't very cosy.
0:14:45 > 0:14:46Well, that's easily replaced.
0:14:46 > 0:14:50More importantly, the way the building's actually laid out
0:14:50 > 0:14:53makes it easy to imagine a reconfiguration
0:14:53 > 0:14:54into residential space.
0:14:58 > 0:15:00What am I going to find up here?
0:15:00 > 0:15:03Another office space here, a smaller one.
0:15:03 > 0:15:06Probably the boss's office cos he'll be in there on his own.
0:15:06 > 0:15:08This would have been a communal office space.
0:15:08 > 0:15:11There's still office table and chairs in here.
0:15:11 > 0:15:15You can see the wires and the aerial points. But again, another big room.
0:15:15 > 0:15:20And you've got to remember, this has consent to go from commercial
0:15:20 > 0:15:22to residential, so the mind's working overtime
0:15:22 > 0:15:24with what you can do with this property.
0:15:24 > 0:15:27But I'll make my decision when I've seen upstairs. Bear with me.
0:15:27 > 0:15:30# One, two, three, four, five
0:15:30 > 0:15:34# Senses working overtime
0:15:34 > 0:15:37# Trying to take this all in
0:15:37 > 0:15:40# I've got one, two, three, four, five... #
0:15:40 > 0:15:43And, yes, there's even more space and even more rooms.
0:15:43 > 0:15:44Another office in here.
0:15:44 > 0:15:48A toilet here as well with a small sink.
0:15:48 > 0:15:50And another great big office here.
0:15:50 > 0:15:51Would have been a communal space,
0:15:51 > 0:15:54maybe four or five people working in here.
0:15:54 > 0:15:56And you've got the town centre just there,
0:15:56 > 0:16:00a stone's throw away, and a bus station as well.
0:16:00 > 0:16:03The building was clearly once a commercial property,
0:16:03 > 0:16:07but I think a change of use to residential is the best way to go.
0:16:07 > 0:16:09I can see this as a really smart townhouse,
0:16:09 > 0:16:12or maybe there's an even better alternative.
0:16:13 > 0:16:16What I mean by that is convert it into two spacious flats.
0:16:16 > 0:16:20Upstairs would be of a decent size, as it is already.
0:16:20 > 0:16:24The garage downstairs could be part of the downstairs flat.
0:16:24 > 0:16:27Knock that wall through and you have a spacious downstairs flat.
0:16:27 > 0:16:28For me, that's the best way of
0:16:28 > 0:16:32getting a great return on your money.
0:16:32 > 0:16:34I do think flats seem the obvious solution.
0:16:34 > 0:16:37But what does a local expert think?
0:16:37 > 0:16:41We've asked along a local estate agent to get his opinion.
0:16:41 > 0:16:43Potentially, if it was my property, I'd be looking at
0:16:43 > 0:16:47converting this into possibly two or even three flats.
0:16:48 > 0:16:51Obviously, not having a rear garden,
0:16:51 > 0:16:54it limits it from being a house, really.
0:16:54 > 0:16:56So I think the best route would be
0:16:56 > 0:16:58to look at converting into flats.
0:16:58 > 0:17:00What did I tell you?
0:17:00 > 0:17:03I don't spend all my time thinking about sweeper systems
0:17:03 > 0:17:05and dodgy offside decisions, you know.
0:17:05 > 0:17:10Anyway, with a building being guided at £90,000 to £110,000,
0:17:10 > 0:17:12if this were to be divided into flats,
0:17:12 > 0:17:15what does he think they would be worth?
0:17:15 > 0:17:18You'd be looking at achieving between
0:17:18 > 0:17:20£100,000 for a two-bedroom property
0:17:20 > 0:17:23and £80,000 for a one-bedroom property.
0:17:23 > 0:17:26On the rental market, again, a two-bedroom property
0:17:26 > 0:17:29you'd be looking around about £600 per calendar month.
0:17:29 > 0:17:33And a one-bedroom property, around about the £500 per calendar month.
0:17:35 > 0:17:36This is a simple one for me.
0:17:36 > 0:17:40It's a three-storey building with consent to convert to residential.
0:17:40 > 0:17:41It's a no-brainer.
0:17:41 > 0:17:44Two flats, two rents and a big yield.
0:17:44 > 0:17:47Let's see who had the vision when it went to auction.
0:17:47 > 0:17:51The first lot I can officially offer is lot 33.
0:17:51 > 0:17:54It's a vacant property. It has been an office building.
0:17:54 > 0:17:56So who wants to be the first bidder?
0:17:56 > 0:17:58Do we want to start off in the middle of the guide?
0:17:58 > 0:18:00£100,000, someone?
0:18:00 > 0:18:0290, then? £90,000.
0:18:02 > 0:18:03And we're away.
0:18:03 > 0:18:05At £90,000 in the middle of the room.
0:18:05 > 0:18:07Do I see 92 anywhere?
0:18:07 > 0:18:10At 92. 94. 96. 98.
0:18:10 > 0:18:13No. At £96,000. 98. Fresh hand.
0:18:13 > 0:18:16And 100. 102. 104. 106.
0:18:16 > 0:18:17106.
0:18:17 > 0:18:21106. 108. 110.
0:18:21 > 0:18:24No. At £108,000, on my right.
0:18:24 > 0:18:29At £108,000. 110. 112. 114.
0:18:29 > 0:18:31No. 113, then?
0:18:32 > 0:18:37At £112,000, standing. He's been with me all the way at £112,000.
0:18:37 > 0:18:40Do I see 113 anywhere?
0:18:40 > 0:18:43112,500, then? 112,500.
0:18:43 > 0:18:49113. And a half. No. At £113,00.
0:18:49 > 0:18:52For the first time, then, we're in the room at 113,000.
0:18:52 > 0:18:56For the second time. Are you all done and out? At £113,000...
0:18:56 > 0:19:00Third and final time. Congratulations, sir.
0:19:04 > 0:19:08That determined and successful bidder was Glen.
0:19:08 > 0:19:13I wanted to know what he had planned for his new £113,000 investment.
0:19:13 > 0:19:15So I thought I'd better go and meet him,
0:19:15 > 0:19:19even if he is an Ipswich Town fan, but nobody's perfect, eh?
0:19:19 > 0:19:21Nice to meet you, Glen. Congratulations.
0:19:21 > 0:19:22Thank you very much.
0:19:22 > 0:19:26First of all, tell us about the auction. How did you find it?
0:19:26 > 0:19:31My lot was the first lot. There was quite a few people who did bid.
0:19:31 > 0:19:35I think there was four of us in total, so some competition,
0:19:35 > 0:19:38but pleased I got it in the end.
0:19:38 > 0:19:40Is this the one you were specifically looking for?
0:19:40 > 0:19:43Yes, I bought it for a particular reason.
0:19:43 > 0:19:50I hope to create a two-bed apartment on the ground and first floor,
0:19:50 > 0:19:51so a duplex apartment.
0:19:51 > 0:19:56And then a one-bed apartment on the top floor, so the second floor,
0:19:56 > 0:19:59both using the shared entrance.
0:19:59 > 0:20:02Have you done it before? Is this a small one for you or a big one?
0:20:02 > 0:20:08This is a relatively small project. I've been doing projects since 2005.
0:20:08 > 0:20:11So, yes, this will be a relatively simple one.
0:20:11 > 0:20:14# That's what I want
0:20:15 > 0:20:18# That's what I want... #
0:20:21 > 0:20:23Well, Glen knows what he wants
0:20:23 > 0:20:26and he certainly has the experience behind him.
0:20:26 > 0:20:30But what was it about this specific property that attracted him
0:20:30 > 0:20:32over all the others in the auction?
0:20:32 > 0:20:34In the case of this project,
0:20:34 > 0:20:39on this road where my office is we have a building there which is
0:20:39 > 0:20:44a nice Georgian property which we've got five serviced apartments in
0:20:44 > 0:20:46for short-term corporate lets,
0:20:46 > 0:20:49and we've had, in the last year,
0:20:49 > 0:20:52very good demand for those apartments.
0:20:52 > 0:20:54We've only got one two-bed down there.
0:20:54 > 0:21:00The other four are one-bed, so I was keen to create a second two-bed.
0:21:00 > 0:21:06So it's for that purpose where we know we've got demand for it.
0:21:06 > 0:21:09# Supply and demand
0:21:10 > 0:21:13# Supply and demand Supply and demand
0:21:13 > 0:21:15# Supply and demand... #
0:21:17 > 0:21:20Glen's plan of corporate business lets seems a good idea,
0:21:20 > 0:21:22and he knows his property.
0:21:22 > 0:21:25He's been in business partnership with his sister Rebecca
0:21:25 > 0:21:28and brother Ross and they've had experience in everything
0:21:28 > 0:21:32from houses of multiple occupancy to property maintenance.
0:21:33 > 0:21:36He even has a cafe in Ipswich,
0:21:36 > 0:21:38although, as a former Norwich City boy,
0:21:38 > 0:21:41I don't think I'll be welcome there.
0:21:42 > 0:21:46The coffee shop is directly behind the football ground,
0:21:46 > 0:21:51so we might need to provide security for you there.
0:21:51 > 0:21:55Moving swiftly on, what's Glen's plan for this property?
0:21:56 > 0:21:58The main thing that needs to be done is
0:21:58 > 0:22:00the rooms need to be reconfigured.
0:22:00 > 0:22:03At the moment, it's sort of open-plan office space,
0:22:03 > 0:22:05so we need to reconfigure it
0:22:05 > 0:22:09so eventually it will be a lot of new stud work walls.
0:22:09 > 0:22:14As I say, we'll go for good quality kitchens and bathrooms.
0:22:14 > 0:22:17Obviously the flooring needs to be changed throughout.
0:22:17 > 0:22:21The lighting at the moment is office-style lighting,
0:22:21 > 0:22:23so that will need to be changed.
0:22:23 > 0:22:26But as a whole, it's a relatively modern building,
0:22:26 > 0:22:28there isn't any structural issues.
0:22:30 > 0:22:33Glen will be using the team from his property maintenance company
0:22:33 > 0:22:35to do the project.
0:22:35 > 0:22:37And though he hopes that actual work should be completed between
0:22:37 > 0:22:39two to three months,
0:22:39 > 0:22:41the current planning permission only allows a conversion
0:22:41 > 0:22:44to a single dwelling, so he'll have to reapply
0:22:44 > 0:22:46if he wants to covert it to two flats,
0:22:46 > 0:22:49and that can take some time.
0:22:52 > 0:22:54You told me your timescales.
0:22:54 > 0:22:56What about your budgets to get all this work done?
0:22:56 > 0:23:01I'm expecting this to be in the region of about £30,000
0:23:01 > 0:23:04to create the two apartments.
0:23:04 > 0:23:07With the serviced apartments, they need to be of good spec,
0:23:07 > 0:23:10so in terms of the kitchens and the bathrooms
0:23:10 > 0:23:12we'll spend good money on those.
0:23:12 > 0:23:14- Glen, good luck. - Thank you very much.
0:23:14 > 0:23:16- Wish you all the best.- Thank you.
0:23:16 > 0:23:18I wish you good luck - not Ipswich Town.
0:23:18 > 0:23:19They don't need it.
0:23:19 > 0:23:20Good luck.
0:23:22 > 0:23:24So, Glen seems to know exactly what he's doing.
0:23:24 > 0:23:27He's got the experience and nothing seems to faze him.
0:23:27 > 0:23:30But will he get permission for two flats in this property?
0:23:30 > 0:23:33Will he stay within his budget? And will he stay within his timescale?
0:23:33 > 0:23:35You can find out later in the programme.
0:23:37 > 0:23:38Still to come, in Wales,
0:23:38 > 0:23:41a pair of developers have some big decisions to make.
0:23:41 > 0:23:43And what's the budget?
0:23:44 > 0:23:46- Well...- Ah, right.
0:23:48 > 0:23:52And I hope Glen had budgeted enough for his development in Ipswich.
0:23:52 > 0:23:56We did come across some issues which we hadn't anticipated.
0:24:00 > 0:24:04Donnington, in a suburb of the Shropshire town of Telford.
0:24:04 > 0:24:08And it was here we first came across a three-bed, mid-terrace townhouse.
0:24:08 > 0:24:13Yes, it needed a little revamping, and the normal culprits -
0:24:13 > 0:24:16the bathroom and the kitchen - certainly needed to be upgraded.
0:24:16 > 0:24:20But otherwise, this wasn't a massive project.
0:24:20 > 0:24:25And it was bought for £60,000 by construction site engineer Lewis
0:24:25 > 0:24:28who had got into this business via his mum Annette
0:24:28 > 0:24:31after she bought him his first property.
0:24:31 > 0:24:35But he's now got the bug, so he's bought this one.
0:24:35 > 0:24:37Who's going to be the boss in this project?
0:24:37 > 0:24:39Well, I would like to be the boss,
0:24:39 > 0:24:41but I'm pretty sure my mum just won't allow it.
0:24:43 > 0:24:47Mums are always the boss. Just give in, Lewis.
0:24:47 > 0:24:50# Paid the cost to be the boss... #
0:24:50 > 0:24:52And though Annette may be the boss,
0:24:52 > 0:24:56it was Lewis's stepfather Mike who would do most of the work,
0:24:56 > 0:25:00while Lewis would help out at evenings and weekends.
0:25:00 > 0:25:03And Annette? Well, she would keep them both in line.
0:25:03 > 0:25:05And with plans to make it a rental property,
0:25:05 > 0:25:10Lewis hoped a budget of just £4,000 would get this one sorted out.
0:25:12 > 0:25:13Now, nearly three months later,
0:25:13 > 0:25:17we're back to check whether it all went to plan.
0:25:17 > 0:25:20Well, there's certainly been a bit of tidying up at the front,
0:25:20 > 0:25:23but it was inside where the majority of work was needed.
0:25:31 > 0:25:33So, what's been done?
0:25:33 > 0:25:36New carpets and vinyl throughout the house.
0:25:41 > 0:25:43We then painted all the walls white.
0:25:43 > 0:25:46Patch repaired the plasterwork where it needed it.
0:25:49 > 0:25:51We put a new kitchen in, but we decided to keep
0:25:51 > 0:25:56the old work surfaces rather than replace them to save some time.
0:25:56 > 0:26:00And they've really improved the downstairs toilet and utility area.
0:26:03 > 0:26:06- And upstairs?- We've put a new toilet and sink in,
0:26:06 > 0:26:08retiled part of the bathroom,
0:26:08 > 0:26:12and some of the old tiles we've painted with tile paint.
0:26:12 > 0:26:15And then the three bedrooms have been brought up to standard.
0:26:22 > 0:26:24In the back garden, we've pointed the paving slabs.
0:26:24 > 0:26:26We've turfed an area that was just weeds
0:26:26 > 0:26:28to make it a more usable area.
0:26:29 > 0:26:33Well, I think the "we" is more "Mike"
0:26:33 > 0:26:37has done a lot of these jobs, most of the jobs.
0:26:37 > 0:26:42I've done a lot of the jobs and Lewis has done some of the jobs.
0:26:42 > 0:26:44OK, so the "we" might be more like "Mike",
0:26:44 > 0:26:47but I'm sure I know who was in control.
0:26:47 > 0:26:49Mum was still the boss
0:26:49 > 0:26:52and she wouldn't really let me have my own way very often.
0:26:52 > 0:26:54She did insist we put a new kitchen in
0:26:54 > 0:26:57when I wanted an old kitchen, though she probably was right on that.
0:26:57 > 0:27:00I never intended to keep the old kitchen.
0:27:00 > 0:27:02It was never going to be kept.
0:27:02 > 0:27:05Ah, but Annette didn't get everything her own way.
0:27:07 > 0:27:09I would have really liked to have done a bit more
0:27:09 > 0:27:13structural work in here and knocked the wall at the back down
0:27:13 > 0:27:17to make a big kitchen/diner, but Lewis didn't want to do that.
0:27:17 > 0:27:19It would have made it a much better house,
0:27:19 > 0:27:21but it would have also cost a lot more money
0:27:21 > 0:27:24and taken a lot more time, which is why I didn't want to do it.
0:27:24 > 0:27:27And even without those structural changes, it took three months
0:27:27 > 0:27:29instead of the two Lewis had hoped for.
0:27:29 > 0:27:32So, what happened there, Annette?
0:27:32 > 0:27:36Mike and I worked very hard down here many hours a day
0:27:36 > 0:27:39while Lewis was on holiday for two weeks,
0:27:39 > 0:27:45but we can't now manage to do 8 till 8 every day.
0:27:45 > 0:27:47Of course it wasn't just her time and effort
0:27:47 > 0:27:49that Annette has contributed.
0:27:49 > 0:27:53My mum was kind enough to lend me the money to do this project,
0:27:53 > 0:27:56so when the tenant moves in, I'll be able to
0:27:56 > 0:27:59get a remortgage on the property to pay her back,
0:27:59 > 0:28:02but I'm hoping she won't ask for the money back immediately
0:28:02 > 0:28:05so I can then buy the next property and renovate that one.
0:28:05 > 0:28:08Cheeky! You're trying it on now, Lewis.
0:28:08 > 0:28:13You've gone over your £4,000 budget and have spent £5,400,
0:28:13 > 0:28:17so now you owe your mum £65,400.
0:28:17 > 0:28:21So, can this house attract a financial income that Lewis needs
0:28:21 > 0:28:24to remortgage the house?
0:28:24 > 0:28:26What do two local estate agents think?
0:28:26 > 0:28:28The owners have done a fantastic job.
0:28:28 > 0:28:30It's very clean and bright looking, very modern.
0:28:30 > 0:28:32The finish is generally good.
0:28:32 > 0:28:34It's all white walls, which is great -
0:28:34 > 0:28:35makes everywhere light and bright.
0:28:35 > 0:28:37It looks really fresh.
0:28:37 > 0:28:40The only negative I can see with this property is
0:28:40 > 0:28:43the configuration of the downstairs
0:28:43 > 0:28:46isn't as popular as people would look for at the moment.
0:28:46 > 0:28:50Most people prefer a large, open-plan kitchen/diner,
0:28:50 > 0:28:55whereas this has got a small kitchen and is more of a living/dining area,
0:28:55 > 0:28:57so that's the only negative I would see.
0:28:57 > 0:28:59It's really with the downstairs layout.
0:29:00 > 0:29:03Ah, so it sounds like Mum was right there, Lewis.
0:29:03 > 0:29:06And though he did plan it as a rental property
0:29:06 > 0:29:08for remortgaging purposes,
0:29:08 > 0:29:11its current market value is important.
0:29:11 > 0:29:15I think the property would be marketed at £89,950
0:29:15 > 0:29:17to achieve somewhere around £85,000.
0:29:17 > 0:29:19On the sales market,
0:29:19 > 0:29:22I would say this property would look to achieve around £85,000.
0:29:22 > 0:29:25That's what we thought it would go for, isn't it?
0:29:25 > 0:29:27- I think that's about right.- Yeah.
0:29:27 > 0:29:29And a value of £85,000 could see
0:29:29 > 0:29:32a pre-tax profit of just under £20,000.
0:29:32 > 0:29:36Not bad. But what about those all-important rental figures?
0:29:37 > 0:29:40I mean, in the rental market, the property ought to go on
0:29:40 > 0:29:42at around about £575 per calendar month.
0:29:42 > 0:29:46I would be confident in achieving £575 per calendar month.
0:29:46 > 0:29:49It's currently on the market at £595 a month
0:29:49 > 0:29:52and the letting agents think they've found us a tenant,
0:29:52 > 0:29:55so hopefully we'll get £595, but we'll see.
0:29:55 > 0:30:00And if that £595 per calendar month deal goes through
0:30:00 > 0:30:02that would see a yield of nearly 11%.
0:30:02 > 0:30:06It certainly seems to have been a shrewd move by Annette
0:30:06 > 0:30:08to get Lewis into property developing,
0:30:08 > 0:30:11and there's no doubting that he's got the bug.
0:30:12 > 0:30:16I would like to have ten rental properties in total.
0:30:16 > 0:30:19Then I can potentially give up my full-time job
0:30:19 > 0:30:23and do property development as a full-time career.
0:30:25 > 0:30:28Well, how does Mum feel about that?
0:30:28 > 0:30:31Well, Mike and I just feel we've done enough, yeah,
0:30:31 > 0:30:34and Lewis will have to do them on his own.
0:30:36 > 0:30:40# That's why I'm leaving it up to you
0:30:43 > 0:30:48# You decide what you're gonna do. #
0:30:57 > 0:30:58We go now to Llanhiledd,
0:30:58 > 0:31:01near Abertillery in Wales.
0:31:02 > 0:31:04Sat within a picturesque valley,
0:31:04 > 0:31:08this little town takes great pride in its local industrial history.
0:31:11 > 0:31:14Well, there's a long tradition of coal mining in the area
0:31:14 > 0:31:19and these lines of terraced houses - probably former miners' houses -
0:31:19 > 0:31:21carry on that tradition.
0:31:21 > 0:31:23This is the one that was up for auction.
0:31:23 > 0:31:27Guide price, just £12,000-plus for three bedrooms!
0:31:29 > 0:31:31Got to be worth a look.
0:31:34 > 0:31:36So, what have we...?
0:31:38 > 0:31:41Hang on a minute. Before I start talking about the house.
0:31:41 > 0:31:44I just flippantly said that guide price - £12,000-plus.
0:31:45 > 0:31:49I mean, in 2014, what does £12,000 buy you?
0:31:49 > 0:31:51An average family car.
0:31:51 > 0:31:55I mean, a square metre of some of the more expensive properties
0:31:55 > 0:31:56in the posh parts of London.
0:31:56 > 0:32:00£12,000 potentially buys you this.
0:32:00 > 0:32:03I mean, does it really matter what it's like?
0:32:03 > 0:32:06It's a house...for 12,000 quid!
0:32:07 > 0:32:11Anyway. Sorry, I just had to say that.
0:32:11 > 0:32:13Anyway, upstairs to the bedrooms.
0:32:13 > 0:32:16Remember, there's three of those.
0:32:16 > 0:32:17Front sitting room area here.
0:32:17 > 0:32:19It doesn't look in bad condition.
0:32:19 > 0:32:22I mean, it's not massive
0:32:22 > 0:32:26and there's obviously signs of a few problems on the front wall, there.
0:32:26 > 0:32:29Through into the rear of the property.
0:32:29 > 0:32:33Well, yes, it starts to look a bit more problematic.
0:32:33 > 0:32:36We've got lots of signs of damp in this chimney breast
0:32:36 > 0:32:38and then over this way...
0:32:38 > 0:32:41Right.
0:32:41 > 0:32:44OK, bit of a problem there. The ceiling has collapsed.
0:32:44 > 0:32:47Now, that generally means either somebody very heavy
0:32:47 > 0:32:49jumping on it above there, probably not, no.
0:32:49 > 0:32:51It's more likely that water
0:32:51 > 0:32:55is coming through from the roof, perhaps.
0:32:55 > 0:32:58It could just be flashing on the chimney. Who knows?
0:32:58 > 0:32:59Obviously it needs investigation,
0:32:59 > 0:33:01but it has caused all sorts of problems.
0:33:01 > 0:33:05And what we don't know so far is if those problems have spread.
0:33:05 > 0:33:07Has it rotted timbers, etc?
0:33:07 > 0:33:09But through there into the kitchen,
0:33:09 > 0:33:12well, first of all, I would like to see that wall gone
0:33:12 > 0:33:15because that would certainly open this whole space out
0:33:15 > 0:33:18because the kitchen as it stands is fairly tiny.
0:33:18 > 0:33:21But one interesting feature you don't often see in kitchens...
0:33:21 > 0:33:24is a shower.
0:33:24 > 0:33:26Wow! That's really bizarre.
0:33:26 > 0:33:30I suppose if you were hot after cooking you'd just nip in there
0:33:30 > 0:33:32and clean yourself up before dinner.
0:33:32 > 0:33:34It does have its advantages.
0:33:36 > 0:33:38# Standing in the shower
0:33:38 > 0:33:40# Thinking
0:33:40 > 0:33:42# Yeah... #
0:33:42 > 0:33:46Well, what I'm thinking is wash your hands of this bizarre set-up
0:33:46 > 0:33:48and use the space more practically.
0:33:48 > 0:33:51There's obviously a lot of work to be done,
0:33:51 > 0:33:54but this house had a guide price of £12,000-plus.
0:33:54 > 0:33:56Oh, did I already mention that?
0:33:59 > 0:34:02So, up here, and it is a little bit...
0:34:02 > 0:34:05- CLEARS THROAT - ..cramped. Tight for space.
0:34:05 > 0:34:07It is an understatement.
0:34:07 > 0:34:10But then again it's three bedrooms in a fairly small property.
0:34:10 > 0:34:13So what have we got? We've got the bathroom upstairs, though.
0:34:13 > 0:34:16That is good. You might have expected to find that downstairs.
0:34:16 > 0:34:20So all your plumbing is there, all the pipe work, soil stack, etc.
0:34:20 > 0:34:23So although you might want to replace it, you're only replacing
0:34:23 > 0:34:27the suite and not having to do all the infrastructure, which is great.
0:34:27 > 0:34:29Decent bedroom to the front there.
0:34:29 > 0:34:32Another bedroom there, a slightly smaller one.
0:34:32 > 0:34:35I mean, they're not huge, but they're not bad.
0:34:35 > 0:34:40But up here in this room, the back bedroom, two chimney breasts
0:34:40 > 0:34:45and again you can see all sorts of problems occurring here.
0:34:45 > 0:34:49So my guess is, it is a problem with the chimney stacks.
0:34:49 > 0:34:53Maybe the pointing, maybe the flashing, whatever.
0:34:53 > 0:34:55You're going to have to get somebody up on the roof
0:34:55 > 0:35:00and get that sorted immediately so the house can start drying out.
0:35:02 > 0:35:05Looking past the obvious problems here,
0:35:05 > 0:35:08this is a good-sized house with bags of potential.
0:35:08 > 0:35:12Plus, there is a little yard out the back which is a nice bonus.
0:35:12 > 0:35:15And of course, that guide price of £12,000-plus
0:35:15 > 0:35:17could prove to be very attractive on auction day.
0:35:21 > 0:35:25What does a local estate agent make of this terrace?
0:35:26 > 0:35:29Even though the property requires quite a bit of work,
0:35:29 > 0:35:31it is a really good rental area.
0:35:31 > 0:35:33The rental market is buoyant
0:35:33 > 0:35:35in this street and we should expect
0:35:35 > 0:35:39once the property is completed to have a decent rental yield on it.
0:35:39 > 0:35:43Good news for investors. So what kind of figures are we talking?
0:35:43 > 0:35:47Once the property is done up, we expect the property to achieve
0:35:47 > 0:35:50a rental figure of £375 per calendar month.
0:35:50 > 0:35:52And what about sales figures?
0:35:52 > 0:35:55Once renovated, we estimate this property to be worth
0:35:55 > 0:35:57in the region of £50,000 to £55,000.
0:35:57 > 0:36:00Well, obviously a bit of work required to sort this one out,
0:36:00 > 0:36:04but it's intrinsically a good little property at a great guide price.
0:36:04 > 0:36:07Let's see who agreed when it went under the hammer.
0:36:11 > 0:36:14Guide at £12,000. Needs a bit of work doing to it.
0:36:14 > 0:36:16Start me somewhere sensible. £10,000?
0:36:16 > 0:36:18It's going to go for a lot more. A lot of interest in this.
0:36:18 > 0:36:22£10,000. Somebody wave. It might be the only opportunity you get to bid.
0:36:22 > 0:36:23Thank you. 10, I've got. And 11.
0:36:23 > 0:36:25I've got 10 there. 11 I'm looking for.
0:36:25 > 0:36:30At £10,000, with the maiden bidder. It's going to be sold. Going. 11.
0:36:30 > 0:36:34Where were you? 11. 12. 13. 14.
0:36:34 > 0:36:37With the price quickly going past that guide,
0:36:37 > 0:36:40we rejoin the bidding at £25,000.
0:36:42 > 0:36:4325.
0:36:43 > 0:36:4925,500? No. At 25 with you for the first time.
0:36:49 > 0:36:50Second time.
0:36:50 > 0:36:5425,500. 26. 26,500.
0:36:55 > 0:36:5826,500 to you. 27.
0:36:58 > 0:36:5927, and a half?
0:36:59 > 0:37:0127,500?
0:37:01 > 0:37:06No. At £27,000 on my left-hand side for the first time.
0:37:06 > 0:37:10Second time. Third and last time. At £27,000.
0:37:11 > 0:37:13Yours, sir. Well done.
0:37:15 > 0:37:18The successful bid of £27,000,
0:37:18 > 0:37:20more than twice the original guide price,
0:37:20 > 0:37:23belonged to Jason, here on the left.
0:37:23 > 0:37:26Jason will be working on the property with his uncle Kuldip.
0:37:26 > 0:37:29Both are builders and came along to the house to meet me
0:37:29 > 0:37:31so I could find out more.
0:37:33 > 0:37:35Jason, Kuldip, great to meet you both.
0:37:35 > 0:37:38- So, a house with a bit of work, then.- Indeed.
0:37:38 > 0:37:41Tell me why you wanted to buy it.
0:37:41 > 0:37:43I wanted to do a project for myself.
0:37:43 > 0:37:47I've done a few projects for clients and customers over the years
0:37:47 > 0:37:49and do developments and renovation work
0:37:49 > 0:37:52and I wanted to try something and have a go for myself.
0:37:52 > 0:37:54And why this particular house?
0:37:54 > 0:37:56When I came here, I looked at it and thought,
0:37:56 > 0:37:58"This is going to be a nice challenge."
0:37:58 > 0:38:02Obviously, as you can see, it definitely will be.
0:38:02 > 0:38:04I've just got a good feel for it.
0:38:04 > 0:38:07- And you're a builder?- Yes. - So that's really convenient
0:38:07 > 0:38:09cos a lot of this stuff might put some people off.
0:38:09 > 0:38:12- Yeah.- Well, you've got to see what's ahead.
0:38:12 > 0:38:15You can visualise what you can make out of it at the end of the day.
0:38:15 > 0:38:19- That's part of the game.- Yeah. - Visualising is always important.
0:38:19 > 0:38:22Yeah, basically have the vision of what could be achieved at the end
0:38:22 > 0:38:25and I think the transformation should be quite nice.
0:38:25 > 0:38:26Spectacular.
0:38:26 > 0:38:29Kuldip, where do you come into this equation?
0:38:29 > 0:38:30This is my nephew.
0:38:30 > 0:38:33And you just want to be a... I'm a builder myself,
0:38:33 > 0:38:37been in the game years and so he just asked my opinion.
0:38:37 > 0:38:41We came to have a look at the property and we looked at the sum,
0:38:41 > 0:38:45we worked the calculation and I think it was feasible.
0:38:45 > 0:38:48- Right.- Set the price in our mind, what we're looking for.
0:38:48 > 0:38:51- Yeah.- And obviously the figure, we were happy with it,
0:38:51 > 0:38:55and Jason went for it, and I'm pleased for him.
0:38:55 > 0:38:58MUSIC: The Man From UNCLE Theme by Jerry Goldsmith
0:38:58 > 0:39:02Well, the help from this man's uncle will be invaluable.
0:39:02 > 0:39:06Yes, having two builders tackling this property is just what it needs.
0:39:09 > 0:39:13Time to hear exactly what it is that Jason has planned.
0:39:16 > 0:39:19We're going to start by totally stripping this back to brick,
0:39:19 > 0:39:22predominantly because of the damp situation.
0:39:22 > 0:39:25There is a major issue with the roof and the chimneys,
0:39:25 > 0:39:30so maybe one or possibly two stacks might have to come down.
0:39:30 > 0:39:35- Totally redo the roof. - New electric, new gas, new plumbing.
0:39:35 > 0:39:39Take the whole plaster off, brickwork, skirting,
0:39:39 > 0:39:42- the flooring, the lot. - Yeah, kitchen, bathroom.
0:39:42 > 0:39:43Till it looks beautiful.
0:39:43 > 0:39:45Right.
0:39:45 > 0:39:48Any sort of structural changes planned?
0:39:48 > 0:39:49Taking out walls,
0:39:49 > 0:39:52this wall here in this room between here and the kitchen, for instance?
0:39:52 > 0:39:55Well, we've looked at maybe taking part of this wall out,
0:39:55 > 0:39:58just to give it a bit more of an open-plan and make it feel
0:39:58 > 0:39:59a bit more spacious and light.
0:39:59 > 0:40:02- That's something we're going to look into.- Yeah.
0:40:02 > 0:40:05Take some of the walls off and make it a bit more wider
0:40:05 > 0:40:08because the rooms are a little bit small,
0:40:08 > 0:40:11especially downstairs in the kitchen and the dining.
0:40:11 > 0:40:14Yeah, maybe even, if we can remove the stack.
0:40:14 > 0:40:17Well, if you're having to take the chimney stacks down
0:40:17 > 0:40:19or renovate them anyway, maybe makes sense.
0:40:19 > 0:40:23- Yeah, strong possibility.- Do you plan to sell it on or rent it out?
0:40:23 > 0:40:26Well, we're looking to hopefully rent it,
0:40:26 > 0:40:28but just having a few chats with the locals,
0:40:28 > 0:40:34they seem very keen to have a friend or a family member rent around it,
0:40:34 > 0:40:37so I don't think there will be an issue at all.
0:40:37 > 0:40:40That's terrific, isn't it? They've already approached you.
0:40:40 > 0:40:41Oh, yeah.
0:40:41 > 0:40:45That's great. That's a real bonus. What's the budget?
0:40:46 > 0:40:49- Well...- Ah, right.
0:40:49 > 0:40:52I estimate between 12,000 to 15,000.
0:40:52 > 0:40:54OK. And why the pause?
0:40:54 > 0:40:59Well, we've been thinking about it a long time, about obviously
0:40:59 > 0:41:02your heart versus the head, that could come into play a little bit
0:41:02 > 0:41:06and basically how far we are going to take it, you know.
0:41:06 > 0:41:09Which side have you come down on, heart or head?
0:41:10 > 0:41:13I'm undecided. MARTIN LAUGHS
0:41:13 > 0:41:15What's the timescale?
0:41:15 > 0:41:18Well, we've had a bit of discussion about this.
0:41:18 > 0:41:22- We're thinking around six months. - Six months, roughly, we're thinking.
0:41:22 > 0:41:25If any unseen work come then maybe, but I think six months should be OK.
0:41:25 > 0:41:29Are you doing this alongside other things as well?
0:41:29 > 0:41:31Yeah, I'll be working hopefully at the same time
0:41:31 > 0:41:33and then do as much as I can myself
0:41:33 > 0:41:36and obviously my uncle's going to help when he can.
0:41:36 > 0:41:40Do as much as I can physically.
0:41:40 > 0:41:43- Friends and family. - Well, listen, congratulations.
0:41:43 > 0:41:45- Thank you.- Good luck with it. - Thank you.
0:41:45 > 0:41:48- And we'll look forward to seeing how you get on.- Thank you.- Thank you.
0:41:48 > 0:41:49- Nice to meet you both.- Thanks.
0:41:51 > 0:41:55Well, I think Jason appreciates there is a bit of work to be done
0:41:55 > 0:41:56to sort this place out,
0:41:56 > 0:42:00but hopefully, with the help of Uncle Kuldip,
0:42:00 > 0:42:02it will all turn out just fine.
0:42:03 > 0:42:07You can find out if it does or it doesn't later in the show.
0:42:10 > 0:42:15So, we've seen the first of today's auction property stories.
0:42:15 > 0:42:18Well, what about the next two? What tales will they have to tell?
0:42:18 > 0:42:20I think we should find out.
0:42:22 > 0:42:23Back to Ipswich now,
0:42:23 > 0:42:26where, off the main street within this courtyard
0:42:26 > 0:42:28was a three-storey property with a guide price
0:42:28 > 0:42:31of £90,000 to £110,000.
0:42:31 > 0:42:36If that seemed a little low, it was because despite outward appearances
0:42:36 > 0:42:38this was in fact a former office.
0:42:38 > 0:42:41That's right. It was a commercial property.
0:42:42 > 0:42:45# We need to talk
0:42:46 > 0:42:49# Step into my office, baby... #
0:42:51 > 0:42:53However, it did have planning permission
0:42:53 > 0:42:56to convert into a residential two-bed single dwelling.
0:42:56 > 0:42:58But I had different ideas.
0:42:59 > 0:43:03What I mean by that is convert it into two spacious flats.
0:43:03 > 0:43:06Upstairs would be of a decent size, as it is already.
0:43:06 > 0:43:10The garage downstairs could be part of the downstairs flat.
0:43:10 > 0:43:12For me, that's the best way of getting
0:43:12 > 0:43:14a great return on your money.
0:43:14 > 0:43:18And converting it into two flats was exactly what Glen intended
0:43:18 > 0:43:21when he bought it at auction for £113,000.
0:43:21 > 0:43:24He seemed pretty confident about it all.
0:43:24 > 0:43:25Have you done it before?
0:43:25 > 0:43:27Is this a small one for you or is this a big one?
0:43:27 > 0:43:31This is a relatively small project.
0:43:31 > 0:43:34I've been doing projects since 2005,
0:43:34 > 0:43:36so this will be a relatively simple one.
0:43:36 > 0:43:40# If that's the biggest problem I've got
0:43:40 > 0:43:42# No problem... #
0:43:42 > 0:43:46Glen had given himself a budget of £30,000
0:43:46 > 0:43:48and a timescale of two to three months.
0:43:48 > 0:43:51And from his experience he was sure there would be a market
0:43:51 > 0:43:55to rent these two flats as short-term serviced apartments.
0:43:55 > 0:43:58But there was a lot of work to be done before then.
0:43:58 > 0:44:00Would everything go smoothly?
0:44:04 > 0:44:06Seven months later and we're back to find out.
0:44:11 > 0:44:13The ground floor and the first floor have been turned into
0:44:13 > 0:44:15a two-bed duplex apartment.
0:44:15 > 0:44:18Gone is the strip lighting and the worn carpet,
0:44:18 > 0:44:22replaced with a modern kitchen/living area,
0:44:22 > 0:44:26a bright good-sized bedroom,
0:44:26 > 0:44:29and shower room, all on the first floor.
0:44:31 > 0:44:34If we go down the new internal spiral stairs to the ground floor,
0:44:34 > 0:44:38the reception will become a second bedroom that's currently unfinished,
0:44:38 > 0:44:39with an en-suite shower room.
0:44:41 > 0:44:44And now for the second flat on the top floor.
0:44:44 > 0:44:47Who better to show us around than Glen himself?
0:44:48 > 0:44:52This is the second-floor one-bedroom flat,
0:44:52 > 0:44:58which was an open-plan office with a toilet in that corner.
0:44:58 > 0:45:03We've increased the size of that room to create a nice shower room,
0:45:03 > 0:45:08and then through there we have an open-plan kitchen and lounge.
0:45:08 > 0:45:11I think, overall, it's worked out really well
0:45:11 > 0:45:13and I'd have to say... I would...
0:45:13 > 0:45:16Yeah, I'd say this top flat is my favourite.
0:45:16 > 0:45:21Glen always intended to use these flats as serviced apartments.
0:45:21 > 0:45:24These are flats generally rented out on a weekly basis,
0:45:24 > 0:45:26mainly to businesspeople or tourists.
0:45:26 > 0:45:29They offer an alternative to a hotel,
0:45:29 > 0:45:33providing services such as regular cleaning and fresh towels and linen,
0:45:33 > 0:45:36and Glen chose the interior specifically
0:45:36 > 0:45:38to appeal to this market.
0:45:38 > 0:45:42We've gone for a more contemporary feel on these apartments.
0:45:42 > 0:45:43White walls.
0:45:43 > 0:45:47The kitchens, we've got high gloss and finished doors,
0:45:47 > 0:45:49and even down to the furniture,
0:45:49 > 0:45:52we tried to have more of a contemporary feel.
0:45:54 > 0:45:56Glen co-owns a property maintenance company
0:45:56 > 0:45:59with members of his family and he's been involved in developing
0:45:59 > 0:46:02and managing properties for over ten years.
0:46:02 > 0:46:05So, with the workforce and his experience,
0:46:05 > 0:46:08he was fairly confident the development would go smoothly.
0:46:08 > 0:46:10But best laid plans and all that.
0:46:12 > 0:46:18We did come across some issues which we hadn't anticipated.
0:46:18 > 0:46:24The building had permitted consent for one residential dwelling.
0:46:24 > 0:46:27I wanted the building for a one-bed and a two-bed,
0:46:27 > 0:46:33so we resubmitted for permitted consent which, to be honest,
0:46:33 > 0:46:35took more weeks than I expected.
0:46:35 > 0:46:39We hoped to use more of the original heating system.
0:46:39 > 0:46:43That wasn't possible, the boiler just wasn't adequate.
0:46:43 > 0:46:47We discovered, for building regulation purposes,
0:46:47 > 0:46:50we had to change all the windows,
0:46:50 > 0:46:53and what we didn't anticipate was the amount of soundproofing
0:46:53 > 0:46:56we'd have to do between the flats.
0:46:56 > 0:47:00# It ain't easy
0:47:00 > 0:47:07# It ain't easy to get to heaven when you're going down... #
0:47:07 > 0:47:09It's worth remembering that problems can hit
0:47:09 > 0:47:12even the most experienced developer.
0:47:12 > 0:47:14All that extra work will inevitably take time
0:47:14 > 0:47:16and cost that little bit more.
0:47:16 > 0:47:20So did he manage to stick to that budget of £30,000?
0:47:20 > 0:47:24It is going to be around that £30,000.
0:47:24 > 0:47:26It might just tip it,
0:47:26 > 0:47:30but with those extra costs I'm quite pleased with that.
0:47:30 > 0:47:34I think he's done very well to keep to that budget of £30,000,
0:47:34 > 0:47:37although those problems, along with the fact his maintenance company
0:47:37 > 0:47:41have been incredibly busy with other jobs through the year,
0:47:41 > 0:47:43have meant that the redevelopment took seven months
0:47:43 > 0:47:45rather than the planned three,
0:47:45 > 0:47:48and having already spent 113 grand at auction,
0:47:48 > 0:47:51can he still make a profit?
0:47:51 > 0:47:54What did two local property experts think?
0:47:55 > 0:47:58I think both of the flats are developed to a very high standard.
0:47:58 > 0:48:01I think that would certainly appeal to anyone that's looking to
0:48:01 > 0:48:05come into the property, whether it be for rent or for sale.
0:48:05 > 0:48:08I think the decision to do the two apartments was the right decision.
0:48:08 > 0:48:12Without a garden, although it's a town centre location,
0:48:12 > 0:48:15I think the flats work better.
0:48:15 > 0:48:19And having spent a total of £143,000 on the development,
0:48:19 > 0:48:21were Glen to sell both the flats,
0:48:21 > 0:48:25the agents thought he could achieve up to 220 grand,
0:48:25 > 0:48:29giving him an overall pre-tax profit of £77,000.
0:48:29 > 0:48:32What about if he were to rent the property?
0:48:33 > 0:48:36If the owner wanted to offer this property for let,
0:48:36 > 0:48:41the one bedroom I would foresee achieving £550 per calendar month.
0:48:41 > 0:48:42With the duplex,
0:48:42 > 0:48:46I think you'd be looking at about £650 per calendar month.
0:48:46 > 0:48:49For the one-bedroom apartment with parking, I would suggest
0:48:49 > 0:48:55a rental value of between £525 and £550 per calendar month.
0:48:55 > 0:48:57And for the two-bedroom apartment,
0:48:57 > 0:49:02I would suggest a rental of £650 per calendar month.
0:49:02 > 0:49:04Based on the top valuations,
0:49:04 > 0:49:08that would give Glen a yield of just over 10%.
0:49:08 > 0:49:11But he wants to rent them on a weekly basis as serviced apartments,
0:49:11 > 0:49:14so what could he achieve there?
0:49:14 > 0:49:20The two-bedroom serviced apartment, I would suggest at £650 per week.
0:49:20 > 0:49:25And the one bedroom serviced apartment, at £495 per week.
0:49:25 > 0:49:29Yes, that's similar to what we do charge.
0:49:29 > 0:49:35We charge 450 for a one-bed and 650 for a two-bed,
0:49:35 > 0:49:37so, yeah, very similar.
0:49:38 > 0:49:39With those valuations,
0:49:39 > 0:49:43it's easy to see why serviced apartments appeal to Glen.
0:49:43 > 0:49:45But his costs will be significantly higher
0:49:45 > 0:49:48due to the weekly maintenance, covering all the bills,
0:49:48 > 0:49:51and a much higher chance of flats being empty for
0:49:51 > 0:49:52long periods of time.
0:49:52 > 0:49:57However, there's no doubt that there's potential for good profit.
0:49:57 > 0:50:00So what's next for this property professional?
0:50:03 > 0:50:06We've got a project, which has now got permission last week,
0:50:06 > 0:50:09for another two apartments - a one-bed and two-bed -
0:50:09 > 0:50:12so that could well be the next project.
0:50:12 > 0:50:16Yeah, I'll keep going, keep looking at auctions and see what comes up.
0:50:20 > 0:50:22Time now to return to Llanhiledd,
0:50:22 > 0:50:24near Abertillery in Wales,
0:50:24 > 0:50:28and this three-bed terraced house with a guide price of 12,
0:50:28 > 0:50:31yes, just £12,000-plus.
0:50:31 > 0:50:36And if you find that difficult to believe, well, so did I.
0:50:36 > 0:50:40In 2014, what does £12,000 buy you? An average family car.
0:50:40 > 0:50:44I mean, does it really matter what it's like? It's a house!
0:50:45 > 0:50:47Well, yes, unfortunately it does matter.
0:50:47 > 0:50:52Though the rooms were a good size, I found lots of damp upstairs.
0:50:52 > 0:50:54So much so, that it's soaked through
0:50:54 > 0:50:58and caused the kitchen ceiling to partially collapse.
0:50:58 > 0:51:02Oh, and did I mention that there was a shower in the kitchen?
0:51:02 > 0:51:03# How bizarre
0:51:05 > 0:51:06# How bizarre
0:51:06 > 0:51:07# How bizarre... #
0:51:07 > 0:51:09Well, despite its condition,
0:51:09 > 0:51:12it surpassed that £12,000-plus guide price
0:51:12 > 0:51:16and was bought by Jason for £27,000.
0:51:16 > 0:51:19Both he and his uncle Kuldip were builders,
0:51:19 > 0:51:22so they seemed the ideal people to take this project on.
0:51:22 > 0:51:26But Jason seemed concerned he might get carried away.
0:51:26 > 0:51:28Well, we've been thinking about it a long time,
0:51:28 > 0:51:32about, you know, obviously, your heart versus the head
0:51:32 > 0:51:35and basically how far we are going to take it.
0:51:35 > 0:51:39Which side have you come down on, heart or head?
0:51:39 > 0:51:41I'm undecided. I'm undecided.
0:51:41 > 0:51:43# It's never too late
0:51:43 > 0:51:44# Too late to
0:51:44 > 0:51:46# Stop, look
0:51:46 > 0:51:48# Yes, listen to your heart
0:51:48 > 0:51:50# Hear what it's saying... #
0:51:50 > 0:51:54Jason had given himself a budget of £12,000 to £15,000 for the work,
0:51:54 > 0:51:56and a timescale of six months.
0:51:56 > 0:51:58But could listening to his heart
0:51:58 > 0:52:02actually eat into his potential profit?
0:52:05 > 0:52:08So what would rule in the end? Head or heart?
0:52:08 > 0:52:13Well, 11 months later, we've returned to find out.
0:52:13 > 0:52:14# Shake it out, shake it out
0:52:14 > 0:52:16# Shake it out, shake it out
0:52:16 > 0:52:19# Ooh, whoa Shake it out, shake it out
0:52:19 > 0:52:20# Shake it out, shake it out
0:52:20 > 0:52:22# Ooh, whoa
0:52:22 > 0:52:25# And it's hard to dance with a devil on your back
0:52:25 > 0:52:27# So shake him off... #
0:52:27 > 0:52:29It feels like a new house,
0:52:29 > 0:52:32and the way Jason and Kuldip describe it, it almost is.
0:52:34 > 0:52:37Completely stripped the house back to brick.
0:52:37 > 0:52:40Yeah, joist, strip the joist down, ceiling down.
0:52:40 > 0:52:43Lintels, some lintels were rotten that we couldn't see.
0:52:43 > 0:52:45Obviously once we started,
0:52:45 > 0:52:48we exposed them and then we had to remove those.
0:52:48 > 0:52:51We had a local roofing company come and slate the roof for us,
0:52:51 > 0:52:55and they did an absolutely fantastic job.
0:52:55 > 0:52:57Apart from that, we pretty much did the whole lot between us.
0:52:57 > 0:52:59The damp and the damage meant
0:52:59 > 0:53:02that Jason and Kuldip almost rebuilt the interior from scratch.
0:53:02 > 0:53:07But because of that, they've been able to create some wonderful rooms
0:53:07 > 0:53:10and none more so than at the rear of the property.
0:53:11 > 0:53:16We're in the kitchen/lounge/dining area that we've created.
0:53:16 > 0:53:19There used to be a wall going across here
0:53:19 > 0:53:22that used to have an old shower in it, believe it or not,
0:53:22 > 0:53:24and it used to be the kitchen there.
0:53:24 > 0:53:27Now the wall has gone to create a nice open area.
0:53:27 > 0:53:31There was an old back boiler there, with the fireplace -
0:53:31 > 0:53:34that's been removed to create some space.
0:53:34 > 0:53:37We've put a new floor down with a membrane
0:53:37 > 0:53:39and a new heating system in the corner.
0:53:39 > 0:53:45There's also some extra cabling so you could put a TV on the wall.
0:53:45 > 0:53:48You know, with the extra lighting, it's a nice place.
0:53:48 > 0:53:51But if you're impressed by that - I know I am -
0:53:51 > 0:53:54well, Jason's got an even bigger surprise.
0:53:54 > 0:53:58A whole new room's been created in the attic space.
0:54:01 > 0:54:05Right, this is the new additional loft space that we've created.
0:54:05 > 0:54:07The timber joists were rotten, so we've dropped the floor level.
0:54:07 > 0:54:09It's gained extra head space.
0:54:09 > 0:54:15We've fitted a new dormer window to increase the head space again.
0:54:15 > 0:54:20Radiators fitted, multi-point lighting to make it user-friendly,
0:54:20 > 0:54:24and also a nice new staircase for an entrance into it,
0:54:24 > 0:54:25with the fire door at the bottom.
0:54:25 > 0:54:28# You just build me up
0:54:28 > 0:54:30# Yeah, yeah... #
0:54:30 > 0:54:33So the three-bed terrace has become a four-bed terrace.
0:54:33 > 0:54:35Jason and Kuldip weren't initially planning on
0:54:35 > 0:54:38extending into the attic, but when the ceiling had to come out
0:54:38 > 0:54:41and several of the joists be replaced,
0:54:41 > 0:54:44they saw it as an opportunity to add value to the house.
0:54:44 > 0:54:47And it's not the only addition they've prepared for.
0:54:49 > 0:54:52We also, at the same time, put a planning application in
0:54:52 > 0:54:55for a small extension to the rear of the property.
0:54:55 > 0:54:58In the future, we could have a bigger room down here,
0:54:58 > 0:55:02but we didn't take that on. But it's there if needed.
0:55:02 > 0:55:03That is a smart move.
0:55:03 > 0:55:06And given that they've already extended their timescale,
0:55:06 > 0:55:09probably a very wise decision not to continue
0:55:09 > 0:55:11with more work at the moment.
0:55:11 > 0:55:14And remember, if your redevelopment needs planning permission,
0:55:14 > 0:55:17keep time and money in the budget.
0:55:17 > 0:55:20So, how long has the work actually taken?
0:55:20 > 0:55:24- In the beginning, we thought five to six months.- That's right.
0:55:24 > 0:55:28But at that time we didn't think we were going to go into the loft.
0:55:28 > 0:55:32And then once the decision was made, obviously, the extra three months
0:55:32 > 0:55:34was pretty much all the work on the loft.
0:55:34 > 0:55:37So, the work's taken nine months in total.
0:55:37 > 0:55:41And having spent £27,000 on the terrace at auction,
0:55:41 > 0:55:44how much have they spent on the redevelopment?
0:55:44 > 0:55:47Well, in the end we spent...to my knowledge,
0:55:47 > 0:55:50the last sort of count was around 25,000.
0:55:50 > 0:55:55Ouch! That's £10,000 more than they'd initially budgeted for.
0:55:55 > 0:55:58Well, it certainly seems like Jason's heart won out in the end.
0:55:58 > 0:56:02But he has created a four-bedroom house and it does have
0:56:02 > 0:56:05extra planning permission as well as a cracking finish.
0:56:05 > 0:56:06But will it be enough?
0:56:06 > 0:56:10Two local estate agents came to give us their opinion.
0:56:11 > 0:56:14The property's been renovated to a high standard.
0:56:14 > 0:56:15They've used space really well by putting
0:56:15 > 0:56:18an additional bedroom into the loft space.
0:56:18 > 0:56:20The loft space will add value to the property
0:56:20 > 0:56:22and make it more appealing in the area.
0:56:22 > 0:56:24I think they've done a really good job on the house.
0:56:24 > 0:56:26I think having the four bedrooms is great.
0:56:26 > 0:56:27It makes it a family house,
0:56:27 > 0:56:29however, it's got a very small back yard
0:56:29 > 0:56:31and that will detract from it.
0:56:31 > 0:56:33Not such an issue if you're looking to rent,
0:56:33 > 0:56:36where four-bedroom rental properties in the area are fairly rare
0:56:36 > 0:56:38and a small back garden isn't really such a problem.
0:56:38 > 0:56:42Jason bought the house for 27 grand, way above the guide price,
0:56:42 > 0:56:46and then spent 25 grand on the renovations, way over his budget.
0:56:46 > 0:56:49So, were he to sell, could he make a profit on this,
0:56:49 > 0:56:54his £52,000 first investment?
0:56:54 > 0:56:58I estimate the property to be worth in the region of £70,000 to £80,000.
0:56:58 > 0:57:00I think it would be worth
0:57:00 > 0:57:02about £65,000 to £70,000 on the open market.
0:57:02 > 0:57:07That top valuation would give Jason a profit of £28,000,
0:57:07 > 0:57:10minus the usual taxes and expenses.
0:57:10 > 0:57:13What could they expect were they to let the property?
0:57:13 > 0:57:16I believe the property could achieve a rental income of
0:57:16 > 0:57:18about £500 per calendar month.
0:57:18 > 0:57:21If this property were to be offered on the rental market
0:57:21 > 0:57:24it would achieve a figure of about £500 per calendar month.
0:57:24 > 0:57:27- Yeah, I think 500 is quite reasonable.- Yeah.
0:57:27 > 0:57:28I think, for that sort of money,
0:57:28 > 0:57:30you're getting quite good value for money.
0:57:30 > 0:57:35So that's a potentially cracking profit or a yield of over 11.5%.
0:57:35 > 0:57:38Not bad options to have for a first development.
0:57:38 > 0:57:42So what's Jason taking from this first project?
0:57:42 > 0:57:47- Be positive and you can achieve the goal.- Oh, yeah, definitely.
0:57:47 > 0:57:49Yeah, it was worth it in the end.
0:57:52 > 0:57:55So have you been inspired by the people and properties
0:57:55 > 0:57:57that we've shown you on today's show?
0:57:57 > 0:57:59If so, then you know what you need to do.
0:57:59 > 0:58:01Yes, join us next time for more Homes Under The Hammer.
0:58:01 > 0:58:03- Goodbye.- Bye-bye.- Goodbye.