Episode 53 Homes Under the Hammer

Hello and welcome to the show. If you are thinking about

investing in property, have you ever considered buying at auction?

Yes, if you do fancy taking the plunge,

there's no time like the present.

So why not head down to your local auction house

and find something that is right for you?

Bidding at auction can be a scary way to buy.

You don't know what's going to happen on the day

and you can end up spending an awful lot of money.

-Oh, it's not that bad, Lucy!

-It is!

Just arrive early, make sure you bid clearly, and you never know,

-you could win your lot.

-Yeah.

What properties did the buyers bid on

on today's show? Let's find out.

Today's journey takes me to Croydon,

spotting public transport at this two-bedroom end terrace.

Look! Train.

I'm in Maerdy, Wales, where there is an unexpected welcome

in the hillside at this three-bedroom semi,

but I've got the cure.

The visit to the local tip.

My trip is into the unknown at this Midland shop

and two-bedroom flat in Sutton Coldfield.

Chopping away at hair, not so much mine, but let's not go there.

All these properties have been sold at auction.

We will find out who bought them and what they paid for them

when they went under the hammer.

It's yours, sir.

Croydon, like many commuter towns, has developed from the sleepy

backwater it once was into a bustling, cosmopolitan place.

Today, I am on the trail of my next property in South Croydon.

And this is far from a sleepy little street.

It has train lines running behind it and a bus route in front of it

and clearly, lots of people living here, which is great.

Now, the property that was up for auction was this two-bed end terrace

with a guide price of £160,000.

Really is lovely on the outside, symmetrical,

it's even...well, quite pretty.

Let's see what it's like on the inside.

Hm. This is not what I was expecting on the inside.

It's funny because sometimes the exterior

and the interior just completely don't match up.

Bit of advice for anybody looking at auction properties,

soon as you walk in the door, I would say,

look up, look across even

because look at that.

A big crack.

Mm. Clearly, there's been a bit of movement.

So, advice - get a structural engineer round, bring a builder,

bring a friend, anybody that knows about stuff like that

because you wouldn't want to be bidding on a property like this

if there are lots of danger zones.

So, what do we have?

Well, it's clear it needs an awful lot of work, there's damp.

I mean, look. Look at this.

-It's just flaking away...

-SHE SNIFFS

..and it absolutely stinks.

You can smell the damp.

It's very pungent in here. There are signs of woodworm

down there in the corner.

And the kitchen. Well, a bit on the small side, actually.

Again, everything needs doing in here.

You literally have got the ceiling hanging down,

so I'm not quite sure what has gone on upstairs.

And I'd like to see if I can get outside to the garden.

But I think that is all locked up. Let's see if I go through here.

Nope, no way out through the second reception room,

which, at some stage, has suffered a similar fate to the kitchen.

I've had to come round the side of the house.

A bit of a disappointing space, actually.

I was expecting a garden,

but you do have some outdoor space.

So nevertheless, that's a positive,

but it's quite interesting to see the back of the building.

That was obviously a window, that was the back door from the lounge.

I think that may have even been an outside loo.

And it's quite unusual to see old toys scattered everywhere,

but another big, fat negative is this.

Follow me, if you would.

That! Look.

Trains are literally whizzing past this hedge

every couple of minutes and it really is noisy.

So, not everybody's cup of tea.

Nope. The toys out here also as sad as the inside.

And whilst you may be able to reduce the noise in the house

with soundproofing, there's little you could do

to quieten down the 3.15 as it rushes past your barbecue.

Now, back inside and at the top of the stairs, the symmetry continues.

Turn left on the landing

and you have more stairs into the biggest bedroom.

# Don't turn on the lights cos I don't want to see

# Mama told me not to come... #

Turn right and further stairs lead to the bathroom.

Now, if you don't want to linger here, who could blame you?

But mind how you go.

Just a whole heap of problems. Nothing looks terribly secure.

This is the small room and like I was saying...

it's almost like the walls are coming in on you.

It's rather unusual to see a property like this that hasn't

been touched in so many years, but there is heaps of potential here.

I would love to get my hands on a property like this

because it could look fantastic.

# I've seen so many things I ain't NEVER seen before

# Don't know what it is I don't wanna see no more... #

I wouldn't want to keep many of the original features in this property.

Let's see what a local estate agent thinks.

The fact that it's got an upstairs bathroom is good

because many other houses on this road have a downstairs bathroom,

so that's a real advantage for this house.

The size of the rooms is very good

and easy access to the station in Central Croydon.

So, these are the benefits of this property.

At a guide price of £160,000,

what could it do if it achieved its full potential?

Once refurbished, this property would either sell

for around £300,000 or on the rental market,

we would mark it at £1,100 per calendar month.

This property is a bit of a "good news, bad news" kind of affair.

On the one hand, you've got good size rooms,

but on the other, they show signs of damp and the cracks.

Good news - you've got a good layout and an upstairs bathroom and toilet,

but on the other hand, it's a noisy location.

Finally, it's an end terrace.

You've got one set of neighbours,

but you don't have much outside space,

so let's find out who thought the good news outweighed

the bad news when it went under the hammer.

Lot 12, South Croydon, Surrey -

two-bed, end-of-terrace house.

Who would like to kick off on this?

I will start low, so at least you can get a bid in. 150.

150. 155, at the back. 155.

160. 165.

170.

Having passed the guide price at £160,000,

bids continue to where we rejoin the bidding at £238,000.

238, in the front. Anyone else?

239, back in. 240, 241.

One more crack. 241?

242.

243.

243. Yes?

242, in the front.

First time, second time,

third and last time, if you are all done.

Sold, 242.

The successful bidder was Nick at the auction with his father.

He is a store manager at a well-known chemist.

We met up back at the house to discuss his plans.

-Congratulations, Nick.

-Thank you.

-Well done.

-Cheers.

So, is this for you to live in or an investment opportunity?

-A bit of both, but it is mainly for me to live in.

-Really?

-Yeah.

-Yes! I love it.

I love it when I meet people that want to do it for themselves.

It's nice to see somebody renovate and put money into a property

so that they can actually get the fruits of their labour.

Yeah, I just really want to enjoy somewhere I live. Really love it.

-Yes!

-Really feel at home.

There is nothing nicer than doing all the work and then knowing

that you are going to be living in it and enjoying what you've done.

-Yeah, exactly.

-And this is such an attractive house, isn't it?

Yeah, especially from the front. Like, it's a double building.

-It's something you would draw when you are a kid.

-Yes, it is.

I really like the front of the building.

Problem is when you walk inside, that's when it all goes wrong.

Just a little bit.

So, come on. On first glance, when you first opened the front door,

what were your thoughts and were you put off?

-Smell, firstly.

-SHE LAUGHS

When I first saw the building before the auction,

I don't remember it being as tough as it looks now.

So, on second glance, it was a bit like, "Ooh."

So, it is...

It's nothing scary.

Stop. Big, fat cracks everywhere.

I mean, you walk in the front door and you look up

-and there are big cracks.

-Yeah.

Now, anybody would be put off by that because straightaway,

you think there is a structural problem.

How far did you go to check that out?

Builder's been in, checking the cracks out,

my dad, who has done a lot of these properties himself.

So, it's not just your dad that's involved in the property, is it?

No, so my mum...

will be in here probably cleaning more than anything,

my stepdad is an upholsterer,

so curtains are going to be free, I'm hoping.

My uncle and auntie have recently bought an old pub

near Bath that they are turning into a house, a family home.

So, several the family have done a lot of this.

-Oh, property bores.

-Yeah.

-So, your Sunday lunches are all about houses.

-Yeah.

I'm going to be dragging them all in at certain times.

As much help as I can get, I'll be getting.

Something else that worries me slightly with property,

along the cracks,

is the train line that is literally behind that hedge there.

I was nervous about it when I first saw the property before the auction,

but the aim is triple glazing on the back, soundproofing walls...

Buses go past these windows and you can hear that.

You can also hear the train at the back,

but with good quality soundproofing like you said...

It will make a difference and the hope is that will deal with it...

One of my...

My stepgrandad is an architect as well so...

All right, stop showing off.

Well, Nick has got plenty of expertise to draw on

and he's planning on having an air gap between the outside brick

walls and the new interior plasterboard walls

he'll be fitting, almost building a room within a room to significantly

dampen the external noise.

But the changes he's planning in the bedroom should be less challenging.

In the main bedroom, there is a cupboard over the stairwell,

which he is going to knock through to the small upstairs room

to give it some more space.

But what about the bathroom?

The bathroom, we're likely to turn it into a shower room

-rather than a bathroom to give it a little bit more space.

-No!

-We're not sure.

-No, no.

Are you saying that whoever you sell this on to won't want a bath?

-We just...

-This could be a family house. This IS a family house

and whoever takes this on after you, they will want a bath.

Yeah, we've had... We are, once again, thinking about it.

We need to do it for the right reasons.

We need to make sure it's sellable. It's not just for me.

-It's about the future.

-But I bet you're not keen on an over shower.

-My height doesn't help that situation.

-What are you?

-6'3", 6'4".

6'3", so by the time you've stood in into the bath...

It does go a little bit high.

Might have to do dig the floor out a little bit.

Well, bath versus shower aside, Nick wants to sort out that rather

cosy kitchen by combining it into an open-plan kitchen-diner.

And where the living room has been blocked out, he will open

that up, too, with French windows

and might even think about extending.

Nick has 60 grand to spend

and he's hoping to get the major works done

in six months and then move in.

He has picked up this approach from his dad, Charles,

who has been on Homes Under The Hammer in 2014

with his own renovation project.

And what a result that was. So, I'm expecting something special here.

No pressure.

-You are very passionate about this house, aren't you?

-Yeah.

-And I can see you working all day and then being here all night.

-Yeah.

-And putting your heart and soul into it.

-I've got that from my family.

My family are exactly the same.

My dad has done this so many times

and I've lived in it as a child.

I've lived in places like this as an eight- to ten-year-old

and seen it go round and round me.

So, I'm very used to it. It's exciting that it's mine this time.

I'm so excited to see your house,

your home that you are going to create.

And it's lovely that you are doing it for yourself.

-Congratulations, Nick.

-Thank you. Cheers.

-Well done.

Isn't it great to see Nick buying this property

to turn into his own home?

He is just so excited by it.

Well, he's certainly got support from all of his family, but will

his plans to reduce the noise and increase the space inside pay off?

Join me later in the programme to see how it all works out for Nick.

I'm in Wales and heading about half an hour's drive from Cardiff

to the Rhondda Valley village of Maerdy.

Named after the ancient Welsh word,

in medieval times, maerdy was the name given

to the dwelling place of a very important person indeed.

Well, maerdy actually means house of the mayor.

So, will the property I'm here to see be a suitably mayoral residence?

Well, he or she would certainly be attracted by the guide price.

£25,000, it was for this -

a three-bed semidetached.

Let's have a look.

And if you are thinking I've gone off in a mardy strop,

you are wrong.

I just had to get to the other side of these railings.

OK, quite interesting.

We've got this little, sort of porch-y area built

into the living room here.

A few signs of damp as you come in.

You'd definitely want to address that sooner rather than later,

but you know, I mean,

it's designed to... It at least keeps the cold and the noise out.

And then into, basically, this one large area.

Quite an interesting design. Not what I was expecting. What about you? No.

You've got this one room here and then you've got the bathroom

leading off there. That's a bit strange.

The stairs to your bedrooms, there.

I mean, it's a nice space. It has a nice open-plan feel to it.

Almost big enough for a mayoral banquet or...

HE LAUGHS

..sort of gathering, perhaps.

Well, to prepare the food for that banquet,

obviously you need a kitchen and this is it.

It feels a bit like it's been built on as a sort of extension

to the property. It's got this low ceiling height, which isn't ideal.

And obviously, you'd need to spend some time and money on this.

New units, a bit of a think about the layout, but it's not a bad space.

Another thing you have to think about is a boiler,

which looks like it's been removed in a bit of a hurry.

But overall, bearing in mind that guide price, you know,

yeah, it's ticking the boxes.

With telltale signs like the severed boiler pipe,

it is worth having a closer inspection throughout.

# This house goes on sale every Wednesday morning...

I think the auctions are less frequent than that, Tom.

# ..and taken off the market in the afternoon... #

Oh, come on, that's a bit pessimistic.

Anyway, upstairs the three bedrooms are all accessed by this

windowless, central corridor.

There are a few cracks

and although not palatial, they are a reasonable size

for a cottage of this type.

The eaves and a short set of stairs encroach into the middle

bedroom of the three, but at least all the bedrooms are double-glazed

to help with those cold winter nights.

# It's true he once had childish laughter. #

Not even you could sell this one, Tom. We will give it a rest.

Well, at the rear of the property,

and good news, you've got a half-decent sized rear garden,

although it could do with a bit of tidying up,

but some potential bad news because there is this side gate.

Well, that's OK.

It accesses this little lane here,

but unfortunately, it is the only access to the neighbouring property's

garden. So, they have a right-of-way through your rear area here.

So, that's really not ideal.

Solicitors don't like that kind of thing and probably

if you were living here, neither would you.

So, we need to find some solutions to that.

Maybe, there is a way of bringing their entrance in some other place.

Anyway, just talk to them

and see if there is a way you can make that happen.

But your first step when it comes to this garden...

..is a visit to the local tip.

Ahem.

The exterior at the back has a hint of mildew on the stone paintwork

and there are signs of other damage, but mostly superficial.

The decking area, however, certainly has seen better days.

With a bit of care and attention and a tidy-up,

it would be different again.

# One man's rubbish

# Is another man's gold. #

And this man's gold, at our invitation,

is to come and give us a local estate agent's perspective on the property.

I wonder what his first impression is going to be.

First impressions of the property are quite quaint.

It's quite a nice, little place, but when you get in here,

it's actually quite large. I mean, three bedrooms upstairs,

wasn't expecting that. It's got quite a large back garden

and for the area, it's quite different

cos it's quite a flat garden.

Although its flatness is somewhat disguised by the full bin bags,

but I do take the point that this is a hilly location.

I think the work on this property is quite minimal inside.

I mean, obviously, it needs a new boiler, some windows are missing.

I would touch up paint and decorating.

I would completely re-gut the bathroom.

I would add a few carpets here and there,

a bit of lino on the floor in the kitchen.

But the main work for me is in the garden.

You can say that again.

So, onto valuations.

What would you value this for

for the refurbished with tidy garden

if you were putting it up for let?

On the rental market, you would get at least 400,

but I would try £450 per calendar month.

Well, the guide price was £25,000.

What could be the potential of this place when refurbished?

If this place was refurbished to a good standard,

I should imagine it would get anywhere between £60-70,000.

Well, it's a pretty decent-sized property for an attractive

guide price. And you certainly can't criticise the location.

Sort out the issues with the garden at the back

and obviously, spend some time and money refurbishing the place

and, yeah, a nice house to end up with.

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

Will you start me, please, for lot number three guided at 25,000...

Start me near, someone at 25. 25. Make it 20, if you like.

20, can we see? Got to be 20 at least. Two hands. Thank you.

Take you to 20, sir. 21. Thank you. 21. 22. And three? 24, 25, 26, 27,

28. 29.

29, no. At £28,000, on my left.

29. And 30.

31. 32. 33. 34, madam.

35? 35. 36. 37. 37?

Or 36.5, if it helps you. 36.5.

37 now. 37. And a half.

37.5. 38. 38, no.

At 37,500, on my left-hand side. You been there from the start.

At 37.5, then, for the first time.

38, back to you. 38.5.

38.5, 39. 39, no.

At 38,500, on my left-hand side then.

For the first time,

second time,

-third and last time at 38,500.

-GAVEL BANGS

Well done, sir. Yours. Your number, please.

The successful bid of £38,500 came from construction site manager Chris

who, as a former builder, has renovated and sold on property

in the past.

He was prepared to go up to £40,000 for this house

where we met up to discuss his plans.

-Chris, good to meet you.

-Morning.

-Congratulations.

-Thank you.

Tell me why you wanted to buy this place, then.

I just wanted to get back on the property market

and seen it come up on auction.

So, I come and had a little view and basically, here I am.

Right. So, what was it about this particular house that titillated you?

Been looking around the area at properties

and basically, this was a bigger size, you know what I mean,

-and nice area.

-Yeah.

-Great views.

-Lovely views. Mountains.

-Fantastic.

-Yeah.

-So, what do you do when you are not doing this?

-I'm a construction site manager.

-OK.

-Yeah.

And what sort of projects do you normally get involved in?

I just finished working on the Children's Hospital for Wales

in Cardiff, in the Heath Hospital, yeah.

Been there for a couple of years, so that's been a great,

great job and I just recently started on a school, so, yeah.

-So, worthwhile projects there.

-Yeah, yeah, brilliant.

Absolutely lovely. Yeah.

And do get hands dirty when it comes to doing your own stuff?

Yeah, I do jump in, now and then, but I've got a team of friends

who come in and be sorting everything out for me.

-Right, so you manage your own little projects as well, do you?

-Yes, yes.

So, tell me what you are going to do to the place.

Basically, we are going to change doors, kitchen,

bathroom suite, do a bit of plastering works,

new front doors, back doors, garden works, etc.

Now, any issues that you can see particularly?

Just a bit with the garden.

Obviously, next-door has got right-of-way

and hopefully, we can try and sort something out

whereas I would like to put the entrance

down the back of the garden, so...

Would you be able to do that within your boundaries, then?

-You'd just give them a different entrance.

-Yeah, yeah.

I've already had a little chat to them

and so, we'll have a little chat later

-and see what we can sort out for both.

-Yeah, a friendly solution.

-Yeah, so it's sorted for both parties, to be honest.

-Oh, great.

Whilst it's good to have a friendly solution

to problems like shared access with neighbours,

I always advise getting plans drawn up

and a binding legal agreement made.

When it comes to selling,

a verbal contract, as they say, isn't worth the paper it's written on.

And then what's the plan for it, then?

Are you going to sell it on or rent it out?

-I think we will sell it straight on, like, you know what I mean?

-Mm-hm.

Yeah, so that's... We are looking about six to eight weeks.

Come in, a team of boys, straightaway

and then get it straight on the market.

What kind of budget have you set aside to do the work?

-We will do it about 8,000 to 10,000.

-OK.

If we go over a little bit, yeah.

So, you paid 38,500, so you are in it for 48,500-ish.

-Done, yeah.

-Done.

What do you think it might be worth?

I'd like about 65, something like that.

65 to 70.

-So, a reasonable return.

-Yeah, not bad.

And the market round here, are you confident you can sell it?

Yeah, I think we should sort something out, yeah.

-But you enjoy it, do you?

-Yes, I do.

I have a great team of friends as well,

-So, that's everything, isn't it?

-Good. How was the auction?

-Yeah, yeah. First experience for me in the auction.

-Oh, was it?

Yes, yes. No, it was good.

Heart was racing a bit, like, know what I mean?

-But no, very good.

-Well, listen, congratulations. Good luck with it.

-We look forward to seeing how you get on.

-Thank you very much. Thank you.

So, Chris taking on a project here that is slightly smaller than

the ones he is used to.

But he has got the skills to make it a success

and a team of people who can help him.

How will he get on sorting this place out

and how will that whole thing with the garden turn out?

You can find out later in the show.

DION: Coming up, my first time in the barber's chair

in Sutton Coldfield.

Now, this won't be a hair-raising experience,

but I think it's a great investment opportunity.

And Chris has got every reason to be mardy in Maerdy.

We've had to get a lot gone from here,

so we've had wagons and wagons gone from here.

In London's South Croydon, we first saw a two-bed,

end-of-terraced house, which looked OK from the outside.

But stepping inside,

well, the level of the task was evident from the off.

Look at this. It is just flaking away...

-SHE SNIFFS

-..and it absolutely stinks.

You can smell the damp. It's very pungent in here.

There are signs of woodworm down there in the corner.

And on top of that, there were cracks

and the whole house was in a pretty desperate state.

And if that wasn't enough, you had to contend with trains

and buses whizzing past.

But none of this put off store manager Nick from buying it

for £242,000 as his new home.

And why should it when you've got a whole family team to call on?

My dad who is done a lot of these properties himself, my stepdad

is an upholsterer, so curtains are going to be free, I'm hoping.

My uncle and auntie have recently bought an old pub

near Bath that they are turning into a house,

my stepgrandad is an architect as well, so...

Oh, right, stop showing off.

And so with the whole family team on hand and a £60,000 budget,

he hoped he could get it turned into his new home in just six months.

# We

# Can make it together

# We

# Can make it together. #

And now, over a year later,

we are back to see what teamwork can get you.

With a new front door and double-glazed windows,

there's promising signs, but it's behind that front door

where the house was in need of desperate attention.

Wow. Just take a look at that!

The kitchen and dining room are unrecognisable.

Obviously, the kitchen was in a really, really bad state.

It had lots of damp issues.

We ripped the roof off completely, started afresh with the roof,

where we added the roof terrace.

Crikey! A roof terrace. That's a real bonus.

And with rebuilding the kitchen area,

they sorted out the crack in this part of the house.

When we moved into the living room, we opened up the bifold doors,

it's got some nice light coming through.

Really extended the size of the room as well.

Again, it is hard to believe we are looking at the same

dark, damp house. This is some transformation!

Those changes continue upstairs with the small bedroom

and bathroom completely transformed.

But the more significant changes have taken place

in the master bedroom.

Halfway through the year

we decided to use the cupboard as an en-suite shower.

Just give myself an en-suite in my room so I can be a bit lazy.

Also, we did actually have to add a bit of a step in the shower.

It's quite a large step, but actually,

it does still make it feel like a nice-sized shower.

I love that. That's a really clever use of space.

And, of course, this bedroom's not just an en-suite,

it also has access to the bonus roof terrace.

And so, overall, Nick's got himself a fantastic house.

And having moved in just three weeks ago,

a long list of people need to be thanked.

I've been lucky with my dad and the builder.

They've done the majority of the work in the house.

I've had some great support networks in terms of my friends have

come in and helped knock some walls down, knock some ceilings down.

Gut the place, basically. Towards the end,

my friends have been helping again in terms of painting.

My mum in terms of the garden and cleaning.

She won't like that I said that but she's been brilliant with that.

My family and friends in general have been absolutely fantastic.

And my girlfriend, she's the one that puts the arty touch,

the feminine touch on the side.

For most of the renovation period Nick lived at his mother's.

So how does it feel to finally have a place of his own?

I bought the house to live in, to get into London.

And it's just I now have a place to be, I have a place to stay,

and it's just nice to have something of my own.

Nick did a lot of the painting and some of the finishing touches.

And although the cracks and the damp are a thing of the past,

the road traffic and railway line are still certainly present.

Yet the inside of the house has gone from this...

METALLIC SCREECHING

..to this...

# It's oh so quiet

# Sh, sh

# It's oh so still... #

We've actually soundproofed the whole house, all the walls,

and plastered over.

Getting the air to trap the sound, just to really reduce it.

And also double glazing across the whole house.

New windows, new doors, it just really helps out that sound.

That's really impressive.

Except there is no getting away from it when you are on the roof terrace.

Well, I guess you might get used to it, eh?

Nick's timescale for the renovation work went completely

out of the window.

Was he still able to keep his budget on track?

I did originally say I was going to spend 60,000 on the house.

I have spent a little bit over that. I spent between 65 and 70.

It's just because of little things, like we've had to buy

a brand-new kitchen that we weren't planning to do.

We've added, obviously, the downstairs toilet,

the upstairs shower room.

Just those little added extras we've done along the way

has added to the cost.

£70,000 spent on top of his £242,000 purchase price

takes Nick's total cost to 312,000.

And I think this Croydon pad really looks to be something quite special.

But what did two local estate agents think?

Firstly, the agent who saw it last time.

It's a complete transformation of this property.

I think the owner has maximised

and really eked out every opportunity to enhance and improve.

I think it's a beautiful property.

It's got lots of little quirky features. I really like it.

It's really bright and open and airy. It's a lovely property.

Yeah, I think

the addition of the roof terrace above the kitchen area and

cleaning up of the garden has really maximised on the outside space.

The only negative that I can see is the train tracks being

so close to the back of the property.

If you open a window, a bedroom window, the downstairs,

you're going to hear the trains. And they are so frequent as well.

I think that is a drawback

but I think they've offset that with the standard of finish.

This is certainly, for the moment, going to be Nick's home.

But is it a good investment having spent £312,000 on the house so far?

We would market this property at £360,000.

This property going on sale would sell for approximately £330,000.

I'm quite happy with that. I was expecting closer to 330 anyway.

360 is really nice to hear. But this is a long-term project for me still.

Yes, Nick is not ready to cash in on a potential pre-tax

profit of between £18,000-£48,000 quite yet.

And the agents felt a rental figure of £1,300 per calendar month

was right for the house, which would generate a 5% yield.

Overall, does he feel it's all been worth it?

If the last year has been a massive learning curve for me.

It's been scary, it's been exciting, it's been upsetting,

stressful, but I wouldn't change it for the world.

Absolutely loved every single moment of it.

And I look forward to doing it again in the future.

-DION:

-Today, I'm visiting Sutton Coldfield in the West Midlands.

Lying just to the north of Birmingham,

the town was incorporated into its larger neighbour back in 1974.

Two years later saw the birth of the town's most famous celebrity,

Cat Deeley.

# She came

# In the Year of the Cat... #

In amongst this row of commercial units is the property

I'm here to see.

It used to be a barber's

but the barber's is only half the story cos the barber's

is on the lower floor and upstairs, you get two-bed flat as well.

Now, for this whole unit, the guide price is £150,000.

Let's go and see what you get for your money.

Right, nice and bright in here. I do like that.

All white, everywhere.

I can imagine two mirrors on that wall

and people chopping away at gentlemen's hair.

Not so much mine, but let's not go there.

Through here, bit more space as well to cut some more hair.

Reception area. People waiting to get their hair cut as well.

It all seems to be pretty well-kept. All white.

Back here we've got the kitchen.

All the cups of tea would have been made here. And...

There is a toilet in there with a sink.

So it's all set up to be a barber's.

All looks in very good condition.

Of course, there are other options.

If you fancied running a caff or restaurant, you'd have to

apply to the local council for change of use.

But with its existing A1 status, you'd be free to convert

this into a shop.

But if you are anything like me,

hopeless with a pair of scissors, you wouldn't keep it as a barbers.

# I'm all fingers and thumbs

# I don't know what I've done... #

OK, upstairs, above the barbershop, and we have the two-bed flat.

There is one of the bedrooms there,

which would be bedroom number one, which is the larger of the two.

The other one is just here, which is... It is a small bedroom.

You'd squeeze a single bed in there.

Across the hallway, into the lounge area.

Decent size. Nice high ceilings. Nice and bright.

Well-kept. Double glazed windows.

Behind this curtain, we've got...

the boiler. Bit of storage space there.

I'd want to do something with that, make it look a little bit neater.

Through into the kitchen, just here.

And it's not a bad sized kitchen for a small two-bed flat.

Through the sliding doors, you've got the shower room in there.

Basically...

You've got a place I think you'd be able to move

straight into without doing a whole lot.

The only thing I would do is probably put a door where

the curtain was to hide that boiler.

But I'm splitting hairs.

I really like this flat.

I'm leaving the splitting of hairs to any would-be barber

looking to take this place on.

There really isn't much to do here.

The flat has its own entrance at the back of the building

where there is also car parking and a small back yard.

With a guide price of £150,000,

will a local property expert see any opportunity to add value here?

Well, there's little scope here to add value,

because the work has already been done.

The flat itself is very presentable.

The shop likewise.

Where it will become a good purchase is when it's fully occupied

and the ground floor and first floor are both let.

The flat upstairs is going to appeal to young professional types.

There is a hospital around the corner.

The area does benefit from a local railway station and good bus

services into Birmingham city centre and Sutton Coldfield itself.

So it's perfect for the younger professional type.

And what about potential rental valuations?

On the flat, we think the maximum rent is likely to be

£525 per calendar month.

On the ground-floor retail space,

we would anticipate £750 per calendar month.

Which would give a total of £1,275 per calendar month.

And what about resale?

The opportunity here is that the property was purchased vacant.

Fully occupied at the type of rentals we've mentioned,

then there is scope to make a small profit on resale.

There is not a lot of work that needs to be done here.

But what I would say, if you are going to get involved

in commercial property, you've got to know what you are doing.

Now this won't be a hair-raising experience,

but I think it's a great investment opportunity.

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

Retail premises. Well presented. Refurbished.

Self-contained flat above.

Start me at, what, 150.

150, yes.

£150,000 for lot 39.

The auctioneer couldn't generate any interest at all at that price.

And it was only at £100,000 when he received the opening bid.

We rejoin the auction with the price standing at £144,000.

144, sir. 144.

Have another two, sir.

At £144,000 then.

For the first time. Are you all done at 144,000?

I'll take 1,000 anyway.

£1,000, sir?

Yes, 145.

At 145,000. You're out now at the back, sir.

At £145,000. 146.

147, sir? Have another one.

147.

148.

148.

Make it 150, sir?

150?

150 bid.

15... Well, I say one, I'll just say two?

150 seated. 151, sir?

I'll take 1,000 anywhere. Are you all done at £150,000? It's cheap.

Being sold for the first time.

For the second time then at £150,000. Are you all done?

-Third and the very last time.

-BANGS GAVEL

It's yours, sir. You won the race. Well done.

All that effort just to end up where we started. That's auctions for you.

Hidden from view for most of the option was successful bidder, Steve.

A buy-to-let landlord who paid exactly the guide price of £150,000.

So, what's his plan?

Will he go for the complete restyle or just take a bit off the top?

I met him back at the property to find out.

# Almost cut my hair... #

Steve, nice to meet you.

-Me too.

-Congratulations, sir.

-Thank you very much.

What was it about this property that made you say, "I want it"?

I'd seen it advertised. And viewed it.

I thought, "Well, OK. There doesn't seem to be a great deal

"the matter with it. Give it a go."

And I think it's just probably a little bit of an instinct.

I've only been doing this for about ten years

so I still feel that I'm quite new to it.

But, you know, you develop little sort of instincts and things.

The day that I came along to look at it, it was a nice, bright day

and, yeah, it's got a good feel about it.

Do you think there's a niche for this kind of property

and people like yourself, because not many people go for these

commercial/residential mixes, do they?

No. No, that's right. It has worked for me, yes.

So I suppose that's why I've got that bit of confidence about this

sort of place. You look for a bargain,

but you look for what you are sort of used to, I suppose.

-And I've had quite good results with shops with flats over.

-Mm.

And that seems to be a little thing that I tune in on.

A nice little flat like this, close to Sutton town centre,

it can't really fail.

And the shop, I'm sure we will, one way or another,

tailor it to lease to someone.

Steve has gathered 25 properties in his ten years at this game.

He has some two- and three-bedroom houses, a mixture of flats,

and some retail units. He has carved out a niche here.

So what are his plans for it?

With shops, quite often you don't have to do a lot.

I mean, it's clean and tidy.

-People will come along and do their own shop fit, you see.

-Of course.

So there is not much point in changing things.

-Initially, for the marketing, leave it as it is.

-Yes.

If we market it and we find that we are struggling then we would

look at possibly going for change of use to A3, which would be fast food.

-Yeah.

-It's a bit speculative

and we would have to see what the planners thought about that.

And also the local residents. Yeah.

I wouldn't want to do anything if everybody was up in arms against it.

-So...

-It's just doing a little bit of research, isn't it?

Yeah, that's right.

Making sure what you put your works for people

-because if you put the right thing in the right place...

-Yeah.

-Surely that's got to be good.

-That's right.

I could see it being a successful takeaway

because it's a heavily populated residential area. So it could work.

But the planners may not agree.

And some of the residences may not be too happy with that.

I like the fact that Steve is being flexible with his plans,

but one thing puzzles me.

He's set himself a budget of two to three grand

and a timescale of two to three weeks.

But looking around this place,

I'm struggling to see where the time and money would go.

You go through the whole thing.

And the central heating system, sometimes there are bugs,

things that need to be dealt with.

So I'm giving myself a generous margin

-and I hope it won't come to that.

-I think you'll be OK with that budget.

I think you'll get some change out of that as well.

Yeah, I think so. Or I hope so. Yeah.

Definitely from what I've seen upstairs.

But you only need an iffy boiler or something

-and that can be, you know, 700 or 800 quid.

-Uh-huh.

Steve is right to be cautious. You just never know.

Even the best-looking property can catch you out.

Am I tempting fate by asking this question?

Is this going to be the easiest one in your portfolio to turn around?

So far, it certainly looks by far the easiest, yeah.

I haven't sort of picked one up before that's in this condition.

So, yeah.

Will you deviate from your background of commercial

and residential?

Will you maybe go all residential or all commercial one day?

I keep an open mind.

And I have to say, if a good deal comes along I would look at it.

-Wherever and whatever.

-That is the correct answer.

Oh, thank you. THEY BOTH LAUGH

-Thank you very much.

-I wish you all the best here.

-Thank you, Dion.

So Steve is quite a shrewd chap.

And I think he's found himself a bit of a niche in the market with

that commercial/residential mix of property.

He has given himself two to three weeks to get the work done.

I don't think he'll use half that time.

And in his budget he's given himself £2,000-£3,000.

He will probably use half of that but it's always good to have a

contingency just in case you find something you are not expecting.

But you can find out how Steve gets on later on in the programme.

That's one property done, just two to go.

I know it's sometimes best to expect the unexpected.

But how did they all get on?

I think we should go back and find out.

Back now to the Maerdy, the Welsh village in the Rhondda Valley,

where earlier I looked around this three-bed semi

bought by construction site manager Chris for £38,500.

He had quite a list of jobs for his building trades friends to get

through, for a budget of just eight to ten grand.

Needs doors, kitchen, bathroom suite,

do a bit of plastering works.

New front doors, back doors, garden works etc.

The garden wasn't without its problems.

Some more obvious than others.

Good news - you've got a half decent sized rear garden.

Although it could do with a bit of tidying up.

But some potential bad news, because there is this side gate. That's OK.

It accesses this little lane here. But unfortunately,

it isn't the only access to the neighbouring property's garden.

Chris was hoping to come to a better arrangement.

Hopefully we can try and sort something out.

I'd like to put in entrance down the back of the garden.

So we will have a little chat later and see what we can sort out.

Chris hoped to complete in six weeks. We are back in 15.

Chris has really opened up the lounge space by removing the wall

that encased the stairs and under-stairs cupboard.

The internal porch is no more. But there is much more space.

# I'm home

# Home

# Home

# Home, home

# And I'm home

# Home

# Home

# Home

# But I'm miles and miles and miles and miles and miles away... #

The kitchen now has modern appliances, units, tiles,

and a boiler at the heart of the central heating system.

# Home... #

The electrics were tested and rewired where necessary.

Chris reskimmed the walls and ceiling himself.

And the room's finished off with new laminate flooring.

# Home

# Home

# Home, home... #

The final downstairs room, the bathroom,

has also been replastering, retiled, re-floored, and has a new suite.

# Home

# Home

# Home

# Home, home

# And I'm home... #

There are new doors and carpets throughout the house,

which should make it easier for Chris' plan to resell.

# But I'm miles and miles and miles and miles and miles away... #

But the longest time was spent, as predicted, fixing up the garden.

# Home

# Home

# Home... #

Basically, what we've done out here, we've had to rip all the wall out.

Basically rebuild it all back up.

We had quite a lot of rubbish in the garden so what we've done,

we got rid of everything.

Basically, we've had to get lots gone from here.

We've had wagons and wagons gone from here.

New fencing right the way round to keep it nice and safe as well.

Re-turfed it. Shrubs and basically gold flint everywhere.

Chris did resolve the access issue with his neighbour.

So he was able to move the access point.

There is a path running along the very back now.

It basically works both ways.

He's got a nicer walkway through and we've got a bigger garden now.

So, yeah, worked well.

But the intensive work on rebuilding the garden retaining wall did

take Chris' budget right to the top of his £10,000 maximum.

We invited two local estate agents round to give us their

thoughts and valuations.

I've seen this property before and the changes are great.

He's done all the basics but he's done a really good job.

I'm very impressed with the rear garden. Very good job.

Organising the right of way I think is a good thing.

It probably would have put people off

if they knew that they had to allow access to the

neighbour from the front, well,

from the front of the garden as opposed to the rear of the garden.

Chris has always been clear about reselling.

But just in case, what would the rental values be?

The rental market in this area isn't as strong as other

parts of the Rhondda Valley.

I would estimate putting the property on the market

for £400 per calendar month.

If the purchaser would have rented it

he would have achieved at least £450 per calendar month.

That top valuation could achieve an 11% yield. You tempted, Chris?

No. No. Quick sale.

OK, chaps. What do you think Chris should expect for a quick sale?

If I was selling this property, I would value it today at £75,000.

If I was to put the property on the market,

I would market it at £60,000.

But it is all a bit academic, chaps.

We had someone come in straightaway. There is no mucking around.

He's no mortgage or anything. You know, we'll pass it straight on.

We have got another venture to go straight into. So, happy days.

So, yeah, all good, like.

Chris has accepted an offer of £60,000,

the bottom end of valuations.

A pre-taxes and expenses potential profit of nearly £12,000.

So is he tempted to give up the day job?

I enjoy doing this like, but no. I like my job. I'll stick to that.

We are returning now to Sutton Coldfield in the Midlands

where earlier I looked around a two-bed flat above a shop.

Bought for bang on the guide price of £150,000 by Steve.

A former electrical engineer, Steve had 25 properties.

And so this is a perfect fit for his rental portfolio.

A nice little flat like this, close to Sutton town centre,

it can't really fail.

And the shop, I'm sure we will, one way or another,

tailor it to lease to someone.

So do you think there is a little niche for this kind of property

and people like yourself, because not many people go for these

commercial/residential mixes, do they?

No. No, that's right. It has worked for me, yeah.

So I suppose that's why I've got that

bit of confidence about this sort of place.

You look for a bargain

but you look for what you are sort of used to, I suppose.

-And I've had quite good results with shops with flats over.

-Mm.

And that seems to be a little thing that I tune in on.

With commercial units, it's wise to be flexible.

The type of business interested in the shop may have different

requirements for the layout. Or even change of use.

I thought Steve's budget of £2,000-£3,000

and a timescale of two to three weeks was more than adequate.

Is this going to be the easiest one in your portfolio to turn over?

So far, it certainly looks by far the easiest, yeah.

I haven't picked one up before that's in this condition. So, yeah.

We are back one month later to see the results of Steve's work.

It would have taken just a week to ten days, he estimates,

if he hadn't spread the work out.

It may be a little tricky to spot the changes in places

so I'll help you out.

Starting with the entrance to the flat, which looked like this.

Now it looks...

Well, the same.

There are big changes in the lounge. Comparatively.

A new fire has been installed.

And I'm glad to see the boiler curtains have been replaced

with a pair of doors.

Apart from a clean up all round,

it has to be said, everything looks the same.

Because it is.

Apart from the bathroom.

Where there is now a shower curtain.

Oh, and the bathroom and the kitchen have had a coat of emulsion.

We could carry on playing spot-the-difference in the shop,

but there's little point as nothing has really changed.

However, there has been a relatively significant change

outside at the back.

Steve's replaced the bin-store lid.

So did Steve's minimalist approach cut it with the potential renters?

Yes, we have a tenant for the flat lined up to go in next Wednesday.

And we're talking to some people regarding taking a lease on the shop.

Which we're very positive about.

They have a good business model, a good plan,

which we're very confident will work for them.

So yeah, very positive about that.

So the lack of refurbishment in the shop didn't deter the tenants

he's got lined up.

They want to change the whole inside of the shop anyway.

So it would've been a waste of time and money to really change anything.

There's no point. So that's the same.

How did the two to three grand budget fare in the end?

Budget's about 1,200 on the flat.

And the shop, a very small amount of money. Probably under £100.

As we know, Steve's already got a tenant for the flat

and is negotiating with one for the shop.

So we called in two local property experts to give us their opinions.

Only the agent who saw the property before will value the shop,

as he's got commercial experience, but they'll both value the flat.

The flat presents very well.

It was a fairly simple project that was required here.

It presented well at the point of sale.

I think there has been a little bit of decorating,

a little bit of freshening up.

But that was really all that was required.

The property has been finished to a basic standard,

but for the market as it is at the moment,

which is very buoyant in terms of lettings, I think

he's done sufficient to be able to let the property out.

We haven't told the agents that Steve has already let the flat

to see how their valuations compare to the level Steve has achieved.

If we were to put this on the market at the moment, it would

let out for around £500 per calendar month.

I think if he was to rent this flat it should be

achieving between 450 and £500 per calendar month.

Yeah, well, that's fine. I mean, we've achieved 500.

So I'm happy with that. Or 495.

Near enough.

Steve paid at auction £150,000

and has subsequently spent on refurbishment 1,300 quid.

So what's the value of the lease on the shop?

The shop should again be readily lettable.

I would expect a rental there of between £8,500-£9,000 per annum.

We've got 8,500 so I'm happy with that.

Taking the total rental income of both the shop

and the flat gives Steve a 9.5% yield on his investment.

So will he keep adding to his portfolio?

I'll keep an eye open for whatever is around.

You know, always on the lookout for a little bargain, I suppose. Yeah.

Shop, house, whatever. Yeah.

Oh, and can he tell us what the

business is he's going to be moving into the shop?

A very upmarket gentleman's grooming salon, which is

like a really smart sort of barbershop plus, plus.

And we are very confident that would be in the right area for it.

And, as the landlord, have you negotiated some mate's rates?

Not that it would do me much good now, really, would it,

to go and have a nice hairdo?

I feel your pain, Steve. But there are advantages.

Think of the money we are saving in haircuts.

So that is the story for today's buyers.

But with so many auctions taking place all over the country,

we've got so many tales to tell.

So we will look forward to seeing you next time for more

-Homes Under The Hammer.

-We will see you, then. ALL:

-Bye.