0:00:02 > 0:00:04Hello. If you're thinking about investing in your future, well,
0:00:04 > 0:00:06property could be a great place to start.
0:00:06 > 0:00:07Yeah, choose carefully,
0:00:07 > 0:00:10buy wisely and you could be on the way to a healthy profit.
0:00:10 > 0:00:14And one way you could do that is by heading down to your local property auction.
0:00:40 > 0:00:42When you buy a property at auction,
0:00:42 > 0:00:44you could be looking to do it up and make a fast buck.
0:00:44 > 0:00:47Yeah, or maybe you're looking for more of a slow burn,
0:00:47 > 0:00:50something that'll give you an income for years to come.
0:00:50 > 0:00:53Yeah, so what did the buyers on today's show get
0:00:53 > 0:00:55when they visited their local auction?
0:00:56 > 0:01:01This hidden four-bed detached in Southampton is literally a cracking house.
0:01:01 > 0:01:04That is one big, potential subsidence crack.
0:01:06 > 0:01:12A two-bedroom mid-terraced cottage in Padfield, Derbyshire has some unusual views.
0:01:12 > 0:01:14You don't see that every day, do you?
0:01:16 > 0:01:18And in Eastbourne, East Sussex,
0:01:18 > 0:01:21a flat above a cafe has its disadvantages.
0:01:21 > 0:01:24- The first thing I notice... - SHE SNIFFS
0:01:24 > 0:01:26..is the food smells from downstairs.
0:01:27 > 0:01:29All of these properties have been sold at auction.
0:01:29 > 0:01:32We'll find out who bought them, and what they paid for them,
0:01:32 > 0:01:34when they went under the hammer.
0:01:34 > 0:01:35You're all done. It will be sold.
0:01:38 > 0:01:43Bassett is a desirable tree-lined residential suburb of Southampton.
0:01:43 > 0:01:46It's great for transport links with easy access to the motorway.
0:01:48 > 0:01:51Nearby, Southampton University has halls of residence here.
0:01:51 > 0:01:56It also has a popular golf club too, so if you're a keen golfer,
0:01:56 > 0:01:59well, the course is only a five-minute drive away from here.
0:02:01 > 0:02:04So, this is a quiet residential area,
0:02:04 > 0:02:06so it's ticking all the boxes for location.
0:02:06 > 0:02:10The property I'm here to see is a four-bed detached house,
0:02:10 > 0:02:14with a guide price of £300,000 plus.
0:02:14 > 0:02:19Now, it's behind here somewhere, and the pathway's already blocked up,
0:02:19 > 0:02:24so I'm going to keep walking to see if I can see anything at all of an entrance,
0:02:24 > 0:02:25and here it is.
0:02:27 > 0:02:28I'm going to have a look.
0:02:29 > 0:02:30Wish me luck.
0:02:31 > 0:02:34I wish I'd brought a machete with me.
0:02:34 > 0:02:37I'm thinking no-one has lived here for quite some time.
0:02:41 > 0:02:43Distinct smell of damp,
0:02:43 > 0:02:45but a nice, big hallway all the same.
0:02:45 > 0:02:48In here, a downstairs toilet and sink.
0:02:49 > 0:02:51Wow, this goes all the way round the corner.
0:02:51 > 0:02:53This would have been a dining room, I would think.
0:02:53 > 0:02:56In here, living room. It's a nice, big space, this.
0:02:56 > 0:03:01A couple of sofas in here. Chair, nice big TV. Lovely windows.
0:03:01 > 0:03:04Some kitchen roll here on the windowsill, maybe just to soak
0:03:04 > 0:03:09up some damp, or maybe just a bit of a makeshift draft excluder there.
0:03:09 > 0:03:14Another big window over here off the lounge going into the back garden.
0:03:14 > 0:03:17Looks like a bit of a jungle. It's like a viewing window at the zoo.
0:03:18 > 0:03:20Oh, look. There's a snake, look.
0:03:21 > 0:03:24Not really. There is a lot more to explore. I'm going to have a look.
0:03:24 > 0:03:26While you take a look outside.
0:03:28 > 0:03:32The growth around the house rendered it invisible from the road.
0:03:32 > 0:03:36The auction catalogue merely showed the shape and size of the plot.
0:03:36 > 0:03:37Believe it or not,
0:03:37 > 0:03:40some of the undergrowth has been cut back to this state.
0:03:41 > 0:03:45# Welcome to the jungle We've got fun and games
0:03:45 > 0:03:47# In the jungle Welcome to the jungle
0:03:47 > 0:03:51# Watch it bring you to your... #
0:03:51 > 0:03:54Over to the other side of the house, into the kitchen, which is
0:03:54 > 0:03:56a nice big space.
0:03:56 > 0:04:00Very green, but get this cleared out, and get a nice, new kitchen here.
0:04:00 > 0:04:02It'd be lovely.
0:04:02 > 0:04:06Into here, just a bit of pantry space in there.
0:04:06 > 0:04:10A serving hatch which would have gone to the dining room,
0:04:10 > 0:04:11which I mentioned earlier.
0:04:12 > 0:04:16And a bathroom downstairs as well, and a big bathroom at that.
0:04:16 > 0:04:19Another toilet, so that's two toilets now on this floor.
0:04:19 > 0:04:24The door going out on to the garden, or jungle as I like to call it,
0:04:24 > 0:04:28into another reception room. This is amazing, this place.
0:04:28 > 0:04:32There's so much going on. So much to see. Wooden ceiling.
0:04:32 > 0:04:36Stone fireplace. Very dated. You'd want to change that.
0:04:36 > 0:04:38A bit of a fire hazard as well.
0:04:38 > 0:04:40And over here, there are some stairs over here.
0:04:40 > 0:04:46I'm hoping these lead to a nice, big, warm swimming pool, but...
0:04:46 > 0:04:48It's a double garage. Disappointment.
0:04:49 > 0:04:54Although it has to be said, there's nothing disappointing about the size of that double garage.
0:04:56 > 0:04:58OK, let's have a look upstairs.
0:04:58 > 0:04:59Bathroom here.
0:04:59 > 0:05:02First bedroom just there to the front of the house.
0:05:04 > 0:05:07Crack here, which is not a good sign as you come upstairs.
0:05:07 > 0:05:09One to the ceiling as well.
0:05:09 > 0:05:11Bedroom two.
0:05:11 > 0:05:13Now, if you thought that was a crack, have a look at this.
0:05:14 > 0:05:16Look at that.
0:05:16 > 0:05:21That is one big potential subsidence crack.
0:05:21 > 0:05:24Now, you've got to get a structural engineer to have a look at that.
0:05:24 > 0:05:27Whole of my hand. Oh! I can feel...
0:05:27 > 0:05:29I think I'm tipping over cos it's that bad.
0:05:29 > 0:05:32That could be incredibly costly. Get that sorted out as soon as possible.
0:05:34 > 0:05:36And due to this potential structural issue,
0:05:36 > 0:05:39the auction house advise that the property was only suitable
0:05:39 > 0:05:43for cash buyers, as its condition meant it was unmortgageable.
0:05:45 > 0:05:48The cracks continue in the largest bedroom of the four,
0:05:48 > 0:05:51which does have the benefit of a stereogram so that you can
0:05:51 > 0:05:54play your favourite album to take your mind off the cracks.
0:05:55 > 0:06:02In the final bedroom, it seems there isn't a room upstairs which isn't affected by cracked walls,
0:06:02 > 0:06:04but with four bedrooms sharing one bathroom,
0:06:04 > 0:06:06perhaps a layout rethink is in order.
0:06:08 > 0:06:12We called in a local estate agent to get his opinion.
0:06:12 > 0:06:15It's very unusual coming to a property that you can't even see
0:06:15 > 0:06:18from the road. I mean, the first hurdle was finding the property.
0:06:18 > 0:06:22How would he react to find the small bedrooms with one bathroom,
0:06:22 > 0:06:24and the snaking layout?
0:06:24 > 0:06:27I would probably recommend making use of the area
0:06:27 > 0:06:30here above the garage, and this family reception room.
0:06:30 > 0:06:33It's really the case of probably extending the accommodation
0:06:33 > 0:06:37into the upper part of the property above where we are now,
0:06:37 > 0:06:41but hoping obviously you can still create two wings with decent sized bedrooms.
0:06:41 > 0:06:44With a guide price of £300,000 plus,
0:06:44 > 0:06:49what could the property be worth on the open market after refurbishment?
0:06:49 > 0:06:52If someone was to completely renovate the property as it stands
0:06:52 > 0:06:56without doing any additional building work,
0:06:56 > 0:07:01I would look to hopefully achieve a figure in the region of £450,000.
0:07:01 > 0:07:03And if extended according to your plan?
0:07:03 > 0:07:08Once completely renovated, and extended and transformed,
0:07:08 > 0:07:14I would look to hopefully achieve a value of somewhere in the region of £500-£550,000.
0:07:14 > 0:07:17The agent thought the property could rent for around an average
0:07:17 > 0:07:23of £1,400 per calendar month as a four-bed, and £1,700 as a five-bed.
0:07:25 > 0:07:28So, there is a lot of house here, but there's also a lot of problems.
0:07:28 > 0:07:30Those cracks are worrying,
0:07:30 > 0:07:34but let's see who was brave enough to take it on when it went to auction.
0:07:34 > 0:07:38Now we come to a good opportunity for in the builders to get
0:07:38 > 0:07:41their teeth into, or a very handy individual.
0:07:41 > 0:07:45This is a good lump of property in a very desirable area of Southampton.
0:07:45 > 0:07:48What can I say on this? 280?
0:07:48 > 0:07:53Hell of a buy at that. 280? 280 nice and promptly in the room.
0:07:53 > 0:07:57It took a while, but eventually the bids passed the 300 grand guide price.
0:07:57 > 0:08:01We rejoin the bidding at £325,000.
0:08:01 > 0:08:02325.
0:08:05 > 0:08:06Two.
0:08:06 > 0:08:08327.
0:08:08 > 0:08:10327. 328.
0:08:11 > 0:08:1229.
0:08:12 > 0:08:15We're down to the nitty-gritty. 329.
0:08:15 > 0:08:21330. 330 I've got on the left-hand side. £330,000.
0:08:21 > 0:08:27Your next-door neighbour's on for over 600. 330,000 then. First time.
0:08:27 > 0:08:28330 for the second.
0:08:30 > 0:08:31Third and final time.
0:08:32 > 0:08:35Well done, sir. 330. That's yours.
0:08:35 > 0:08:39And the successful bidders were husband and wife Mick and Penny,
0:08:39 > 0:08:43who together with their two sons run their own building company.
0:08:45 > 0:08:47They have over 20 years' experience,
0:08:47 > 0:08:50and sound like the right couple to take this project on.
0:08:50 > 0:08:53They join me back at the property to tell me their plans.
0:08:53 > 0:08:57- Mick, nice to see you.- Nice to see you.- Penny, nice to see you.- Hello.
0:08:57 > 0:08:58Firstly, tell me about the auction.
0:08:58 > 0:09:02It was the first auction I'd been to where we've actually bid with our own money,
0:09:02 > 0:09:04so it was quite sort of frightening for us,
0:09:04 > 0:09:07you know, because the property we went after, we didn't get.
0:09:07 > 0:09:11- So, this wasn't the one you were actually went to auction for?- No, it wasn't.
0:09:11 > 0:09:14So, how did you come about getting this one, and not the one you wanted?
0:09:14 > 0:09:16It was next in line on the catalogue, I think.
0:09:16 > 0:09:19- And it was in a good location. We knew the area.- Yeah.
0:09:19 > 0:09:22So, we wrote some figures on a bit of paper,
0:09:22 > 0:09:25and said, "Let's go that high."
0:09:25 > 0:09:26And here we are, the owners.
0:09:26 > 0:09:29- So, without seeing this property?- Yes.- Yes.
0:09:29 > 0:09:32To be honest with you, we looked at it in the catalogue at home,
0:09:32 > 0:09:34and we actually thought it was a building plot.
0:09:34 > 0:09:37Because we've got quite a few building plots on the go,
0:09:37 > 0:09:40we were interested, and when we were both sat in the auction room,
0:09:40 > 0:09:44we said, "This is a house. It's not a building plot."
0:09:44 > 0:09:47The picture they gave us, cos they couldn't get in cos of the garden,
0:09:47 > 0:09:51it was just like a plot of land, showing the outbuilding.
0:09:51 > 0:09:54We just said, "Well, it's a good area. Let's go for it."
0:09:54 > 0:10:00- Now, when you actually walked in here for the first time, Penny, more so... - She hit me. She beat me up.
0:10:00 > 0:10:02What were your first thoughts?
0:10:02 > 0:10:06It really didn't faze me because we have done these sort of things before,
0:10:06 > 0:10:10and Mick and his team can do wonders for the property, they really can.
0:10:10 > 0:10:11It has got potential.
0:10:11 > 0:10:15We've got plans for it, so we hope to get five, six bedrooms in,
0:10:15 > 0:10:18move the kitchen around and build above the garage
0:10:18 > 0:10:21- and the existing second living room.- OK.
0:10:21 > 0:10:25If they don't come off, then we'll just knock it down and build a new house.
0:10:25 > 0:10:27Are you happy to just total this and start again with what you've got?
0:10:27 > 0:10:30The reason why we bought it, obviously, is for inside work,
0:10:30 > 0:10:34because we carry ten men that desperate for winter work,
0:10:34 > 0:10:38so if we do knock it down, we are back to square one. If it rains...
0:10:38 > 0:10:40So the cracks didn't bother you at all?
0:10:40 > 0:10:42There are some major cracks in this building.
0:10:42 > 0:10:45- It doesn't seem to faze you. - A bit of glue.
0:10:45 > 0:10:47I think they have already tried that. DION LAUGHS
0:10:47 > 0:10:50We are going to take all the ceilings down, first job,
0:10:50 > 0:10:52and get the engineer and the architect in, have a look
0:10:52 > 0:10:54and see what we've got.
0:10:54 > 0:10:57But all the brickwork outside's fine,
0:10:57 > 0:11:00so I'm hoping there's no underpinning.
0:11:00 > 0:11:03The walls above where we are now, in the bedrooms,
0:11:03 > 0:11:06they are solid walls and they're sat on the floor boards.
0:11:06 > 0:11:09The engineer's report, due in a week or so, will determine
0:11:09 > 0:11:12if the building is salvageable or not.
0:11:12 > 0:11:16Assuming it is, what will Mick's team get stuck into first?
0:11:16 > 0:11:18Everything...really.
0:11:18 > 0:11:22- Everything?- Everything. New central heating system straightaway.
0:11:22 > 0:11:27Complete rewire, replaster, new ceilings, insulation.
0:11:27 > 0:11:30Probably the wall ties in the cavity.
0:11:30 > 0:11:34- I would say just about everything. - Well...- New windows.
0:11:34 > 0:11:36Is that a total overhaul?
0:11:36 > 0:11:38Yes, basically. We'd just have a shower
0:11:38 > 0:11:40and then we'd put it all back together.
0:11:40 > 0:11:44You know, if you're going to do it, do it properly.
0:11:44 > 0:11:47Now, tell me about the double garage. What are your plans for that?
0:11:47 > 0:11:51Yes, I want to go and build above it.
0:11:51 > 0:11:55We want to put a master bedroom in there, with a walk-in closet
0:11:55 > 0:12:00and a bathroom. Have vaulted ceilings in that area, so, yes...
0:12:00 > 0:12:03- Grand designs here.- Isn't it?
0:12:03 > 0:12:06Yes, it is amazing. Over the dinner table, we have all these plans out.
0:12:06 > 0:12:09He says, "Come and have a look at this, Penny, have a look at this."
0:12:09 > 0:12:11But he's now given me a saucepan allowance,
0:12:11 > 0:12:14because I burn so many saucepans talking about business.
0:12:14 > 0:12:17- Because you've left it on the hob? - Yes.- Oh, dear.
0:12:17 > 0:12:19- That's your fault.- Yes, there you go.
0:12:19 > 0:12:23So, Penny, I'll ask you, how is the dynamics? It is a family business.
0:12:23 > 0:12:27- You've got your boys working for you as well.- Yes, both boys.
0:12:27 > 0:12:30One joined this year, one's been with us for five years now.
0:12:30 > 0:12:33- We are passionate about building, that's what I would say.- Yeah.- OK.
0:12:33 > 0:12:36So will you both be on site, will you be elsewhere,
0:12:36 > 0:12:39will you be playing golf, will you be in the sun? What's your plans?
0:12:39 > 0:12:42I'll be running the office, making sure they keep to the budget
0:12:42 > 0:12:44and keep to the time schedule.
0:12:44 > 0:12:47- They don't call me Moneypenny for nothing.- I like that.
0:12:47 > 0:12:50I'll be here every day, I would have thought.
0:12:50 > 0:12:52Making sure everything is running smoothly,
0:12:52 > 0:12:56and I'll just wander off to the golf course, like I always do.
0:12:57 > 0:13:01The mission Miss Moneypenny will oversee is, either demolish a new build,
0:13:01 > 0:13:05or renovate this house in four to six months, then sell on.
0:13:05 > 0:13:09But as a backup, they have a portfolio of properties already,
0:13:09 > 0:13:11and they would rent it out.
0:13:12 > 0:13:15So given this could be a money pit for Miss Moneypenny,
0:13:15 > 0:13:17how much do they plan to spend?
0:13:17 > 0:13:20MUSIC: Diamonds Are Forever by The City Of Prague Philharmonic Orchestra
0:13:23 > 0:13:29It is going to be in the £150,000 bracket, depending on what we do.
0:13:29 > 0:13:31- That's an awful lot of money. - Yes, it is.
0:13:31 > 0:13:33You can do a lot of work with that sort of money.
0:13:33 > 0:13:35So, guys, Mick and Penny, I wish you all the best.
0:13:35 > 0:13:39- Thank you.- I look forward to seeing how you get on. - Thank you.- Thank you. Cheers.
0:13:40 > 0:13:45Mick and Penny don't seem fazed at all by a project of this size,
0:13:45 > 0:13:48but a lot hinges on that structural engineer's survey.
0:13:48 > 0:13:52Will we return to see a new property or a renovated property?
0:13:52 > 0:13:54You can find out later on in the programme.
0:14:01 > 0:14:05We head now to Derbyshire and the lovely village of Padfield,
0:14:05 > 0:14:08which was a former home to mill workers of the cotton industry.
0:14:10 > 0:14:14Nowadays it's a popular spot for commuters and first-time buyers.
0:14:15 > 0:14:19So, this is Padfield, close to Hadfield, close to Glossop,
0:14:19 > 0:14:23which is about 30 or 40 minutes away from Manchester by train.
0:14:23 > 0:14:26Great little spot, very traditional terraced houses.
0:14:26 > 0:14:28That's what I'm here to see.
0:14:28 > 0:14:32Two bedrooms, guide price £80-£90,000 plus.
0:14:32 > 0:14:33Great.
0:14:36 > 0:14:37So, what have we got?
0:14:37 > 0:14:41Well, straight inside and into your main living area.
0:14:41 > 0:14:43A nice open-plan feel, which is good news.
0:14:43 > 0:14:45Stairs leading up to your bedrooms there.
0:14:45 > 0:14:48Wow, you're confronted by this fireplace! That is impressive.
0:14:48 > 0:14:51Whether it is original or not, I don't know.
0:14:51 > 0:14:53Maybe it is, it is gorgeous.
0:14:53 > 0:14:58But it's a really nice living room, if you like, so a good start.
0:14:58 > 0:15:02And then through here, under the stairs, into the kitchen.
0:15:02 > 0:15:05That is basically it for the downstairs. Two rooms.
0:15:05 > 0:15:06But they're a good size,
0:15:06 > 0:15:09the kitchen obviously... could do with some units.
0:15:09 > 0:15:12Things you might expect in the kitchen, like a sink.
0:15:12 > 0:15:15But nice, old-fashioned sash windows.
0:15:15 > 0:15:17Again, lots of light.
0:15:17 > 0:15:21Yeah, it has got what you need, and it will immediately...
0:15:21 > 0:15:23It is kind of quirky but lovely.
0:15:24 > 0:15:30# I got what you need, babe.
0:15:30 > 0:15:34# Take a chance and you'll see.
0:15:34 > 0:15:37# You can get it from me... #
0:15:37 > 0:15:39I know it's seen better days, but it is a solid little property
0:15:39 > 0:15:42with a nice layout and good features.
0:15:42 > 0:15:45Though some are better than others.
0:15:52 > 0:15:56You don't see that every day, do you? A window.
0:15:56 > 0:15:59Complete with a nice... What do you call those things underneath
0:15:59 > 0:16:01windows? Whatever that is.
0:16:01 > 0:16:05There. Halfway up the stairs. Bizarre.
0:16:06 > 0:16:10MUSIC: A Room With A View by Noel Coward
0:16:10 > 0:16:13The view is straight into the kitchen.
0:16:13 > 0:16:16That is pretty weird.
0:16:16 > 0:16:20So, up here, a reasonable sized bedroom to the back.
0:16:20 > 0:16:23And then a large bedroom to the front,
0:16:23 > 0:16:27but then another thing that's a little bit weird because...
0:16:29 > 0:16:34The bedroom currently has two doorways. How very strange.
0:16:34 > 0:16:39Bathroom at the back there, a little sink there. What is going on?
0:16:39 > 0:16:41This is only a s-s-s... Uh!
0:16:41 > 0:16:46Yeah, stud partition wall. So that would be easy to remove.
0:16:46 > 0:16:49I think somebody was maybe trying to make a better integration of the loo
0:16:49 > 0:16:53at some point, but whatever, you're going to have to fiddle about...
0:16:53 > 0:16:57Another window in the middle of a wall! I've only just noticed that.
0:16:57 > 0:17:00- Wow! - HE LAUGHS
0:17:00 > 0:17:01HE SIGHS
0:17:01 > 0:17:05Anyway, a bit of playing around needed.
0:17:05 > 0:17:07So, lots of work to do
0:17:07 > 0:17:10and maybe a bit of reshuffling to get the most out of this property.
0:17:12 > 0:17:15But the back of the property, it really is rather charming.
0:17:15 > 0:17:19You've got a very small, little courtyard area there, and then
0:17:19 > 0:17:23because of the layout of the houses, it's all sort of mishmashed together.
0:17:23 > 0:17:28This cobbled area here is actually communal. It's really cute, though.
0:17:28 > 0:17:31You can imagine some of your flowers growing in here.
0:17:31 > 0:17:34One thing you do have, which is yours, is this little shed.
0:17:34 > 0:17:36You know, rolling hills in the background, it is
0:17:36 > 0:17:39so Last Of The Summer Wine, isn't it?
0:17:39 > 0:17:41Absolutely glorious.
0:17:44 > 0:17:48So, for a guide price of between 80 and 90,000,
0:17:48 > 0:17:51you could be in with a chance of acquiring your own little
0:17:51 > 0:17:55corner of beautiful Padfield, which sounds pretty good to me.
0:17:57 > 0:17:59But will a local estate agent think the same?
0:18:01 > 0:18:04Well, it is a nice little terrace house, basically.
0:18:04 > 0:18:06It offers sort of two bedrooms
0:18:06 > 0:18:09and a decent amount of downstairs reception space.
0:18:09 > 0:18:12It's nice. The little bit of outside space as well.
0:18:12 > 0:18:15I think it needs a kitchen, a bathroom,
0:18:15 > 0:18:16just a bit of a renovation
0:18:16 > 0:18:21top to bottom, but, yeah, it's a nice property in a nice area.
0:18:21 > 0:18:24It certainly is. But what kind of values are we looking at
0:18:24 > 0:18:27once the work has been done? Rental first.
0:18:27 > 0:18:28So once renovated,
0:18:28 > 0:18:31I think this property would rent
0:18:31 > 0:18:34for £500 to £550 per calendar month.
0:18:34 > 0:18:37And what about the sales market?
0:18:37 > 0:18:41Once renovated, I think we would put it on the market for £129,000.
0:18:42 > 0:18:45Well, I don't think it would be going over the top to describe
0:18:45 > 0:18:48this little place as extremely charming.
0:18:48 > 0:18:52It's just one of those properties - the area, the style,
0:18:52 > 0:18:55the building, even inside - you just fall in love with.
0:18:55 > 0:18:58Yes, it needs some work, but who cares?
0:18:58 > 0:19:01Let's see who agreed when it went under the hammer.
0:19:01 > 0:19:03This is £80,000 to £90,000.
0:19:03 > 0:19:06Located within the rural village of Padfield
0:19:06 > 0:19:10and yet still conveniently situated to the surrounding amenities.
0:19:10 > 0:19:13Lounge, kitchen, two bedrooms and a bathroom. Who's here for this?
0:19:13 > 0:19:16At £75,000, need a bid.
0:19:16 > 0:19:18That's a bid at 75.
0:19:18 > 0:19:21At £75,000, then, are we all done?
0:19:21 > 0:19:26A flurry of bids, then, takes the price to £82,000, where we rejoin.
0:19:26 > 0:19:29At £82,000, are we all done?
0:19:29 > 0:19:30All done?
0:19:30 > 0:19:32What are we saying?
0:19:32 > 0:19:33What, 83?
0:19:33 > 0:19:3583. 84.
0:19:35 > 0:19:3685.
0:19:36 > 0:19:3886.
0:19:38 > 0:19:3987.
0:19:40 > 0:19:4286 and a half. 87.
0:19:42 > 0:19:44And a half.
0:19:44 > 0:19:4588.
0:19:45 > 0:19:47And a half.
0:19:47 > 0:19:4889.
0:19:48 > 0:19:50And a half.
0:19:50 > 0:19:5190.
0:19:51 > 0:19:53And a half.
0:19:53 > 0:19:55Here at 90. First time.
0:19:55 > 0:19:56Second time.
0:19:56 > 0:19:59Third and final time, then, at £90,000,
0:19:59 > 0:20:00selling away.
0:20:00 > 0:20:03You, sir. Congratulations. Can I have your paddle number, please?
0:20:03 > 0:20:06Getting the property at the top end of the guide at 90 grand,
0:20:06 > 0:20:10with bidding help from builder friend Steve, was barmaid Rita.
0:20:10 > 0:20:14And Rita, it turns out, has been cheating time
0:20:14 > 0:20:17when it comes to that research thing.
0:20:17 > 0:20:20# She's my sweet, sweet
0:20:20 > 0:20:23# a'cheatin' Rita... #
0:20:23 > 0:20:27- Rita, great to meet you. - Oh, and you, Martin. - Congratulations.
0:20:27 > 0:20:30- Thank you.- Tell me why you wanted to buy this place.
0:20:30 > 0:20:32- Well, I didn't, really.- Oh, right. - It came as an accident.
0:20:32 > 0:20:36- Huh?- I was looking on the iPad and I saw this property,
0:20:36 > 0:20:39and when I rang up, they said, "It's up for auction."
0:20:39 > 0:20:42"Oh," I said, "When's the auction?" They went, "Today."
0:20:42 > 0:20:44I went, "And what time's that?"
0:20:44 > 0:20:48They said, "Two o'clock." This was 1:10.
0:20:48 > 0:20:51So they said, "Do you know where the City Ground is, in Etihad?"
0:20:51 > 0:20:53I said, "Yeah, I've got a good idea."
0:20:53 > 0:20:58So I gets in my car, goes there, and wallop hand up, gets this house.
0:20:58 > 0:21:01- SHE LAUGHS - That has got to be the shortest period of time
0:21:01 > 0:21:03between discovering...
0:21:03 > 0:21:07I didn't look inside, no, but I did bring someone to look at the roof.
0:21:07 > 0:21:10- Not before you bought it. - Before I bought it.
0:21:10 > 0:21:13- I didn't look in it.- How could you have done that in the 50 minutes
0:21:13 > 0:21:16- you had between finding out and...? - Because the guy that's the builder,
0:21:16 > 0:21:19he only lives round the corner, rang him up. He's rained off.
0:21:19 > 0:21:22I said, "Come with me, look at the roof in here."
0:21:22 > 0:21:24And then I said, "I've no time to take you back,
0:21:24 > 0:21:27- "you'll have to come to the auction." - THEY LAUGH
0:21:27 > 0:21:30- So that's what happened.- So you had seen it from the outside, at least?
0:21:30 > 0:21:32- From the outside, yeah.- Right.
0:21:32 > 0:21:37So what made you so determined at that moment?
0:21:37 > 0:21:40I mean, most people would have gone, "Forget it.
0:21:40 > 0:21:43"There'll be another house coming along at some point."
0:21:43 > 0:21:47- Why did you...?- I do things like that.- Do you?- I'm impulsive.
0:21:47 > 0:21:49I knew the area, I knew where it was,
0:21:49 > 0:21:53and I know the pub 25 yards up there, so I know it's a good pub.
0:21:53 > 0:21:56- Right, that's important. - So I thought, "Well, that's fair enough."
0:21:56 > 0:22:00And get a train into Manchester, walking distance. That's not bad.
0:22:00 > 0:22:02Stone house, looks all right.
0:22:02 > 0:22:05My friend had bought one across the road.
0:22:05 > 0:22:07Looked in that one, that was fine, so...
0:22:07 > 0:22:10But there might have been another one coming up at another auction.
0:22:10 > 0:22:13And this was at the right price, so couldn't let it go then.
0:22:13 > 0:22:16- I was going to go to bid 105.- Right.
0:22:16 > 0:22:19And then it went to 90, and that was it.
0:22:19 > 0:22:22Rita definitely doesn't let the grass grow under her feet.
0:22:22 > 0:22:25She has, in fact, already installed that boiler.
0:22:25 > 0:22:28So what is her plan for this house?
0:22:28 > 0:22:32I've got my builders on, so they're going to put the new windows in,
0:22:32 > 0:22:36kitchen, damp-proof, do everything like that.
0:22:36 > 0:22:38Put floorboards where they need new...
0:22:38 > 0:22:42- Moving a few walls and whatnot. - Tell me about the wall moving.
0:22:42 > 0:22:45Well, they're just studded walls between the bathroom
0:22:45 > 0:22:48and one of the bedrooms that we're moving slightly
0:22:48 > 0:22:50- to get a proper bathroom in.- OK.
0:22:50 > 0:22:53What's the plan for it? Is it to rent it out or sell it on?
0:22:53 > 0:22:56Well, I need to have time out for myself,
0:22:56 > 0:22:57so I want to take 12 months out.
0:22:57 > 0:23:01So this was an opportunity for me to rent out,
0:23:01 > 0:23:06to get the rent off it to bung my pension up to do this for 12 months.
0:23:06 > 0:23:09Wow. Tell me what you're going to do in your 12 months?
0:23:09 > 0:23:11I'm going to Australia for six weeks.
0:23:11 > 0:23:15- I'm going on a cruise for 42 days. - 42 days? Wow!- Yeah.
0:23:15 > 0:23:17Like, six weeks. And then I'm going to...
0:23:17 > 0:23:21I've got a property that I'm renting next year in Spain
0:23:21 > 0:23:25off a friend of mine, so I'm going to stay there for about six months.
0:23:25 > 0:23:28Why this year? What's the celebration, or what's the reason?
0:23:28 > 0:23:32- I'm 65, so I've got to do it now. It's my bucket list.- Is it?
0:23:32 > 0:23:33THEY LAUGH
0:23:33 > 0:23:37I'm 65 this year, so if I don't do it now...
0:23:37 > 0:23:41Rita plans that work here will take 12 weeks
0:23:41 > 0:23:44and has a budget of £15-20,000.
0:23:44 > 0:23:47She'll live in it initially, and then will be renting it out
0:23:47 > 0:23:52while she goes gallivanting all over the globe for her year-long soiree.
0:23:52 > 0:23:54Good plan, Rita!
0:23:54 > 0:23:59# Cos I took a long look at my bucket list
0:23:59 > 0:24:01# And whoa-oa-oa-ooh
0:24:01 > 0:24:04# I'm running out of time... #
0:24:04 > 0:24:07Will you get your fingers dirty, your hands dirty?
0:24:07 > 0:24:11Oh, yeah, I'll be doing the shifting and the mucking and whatnot.
0:24:11 > 0:24:13Helping with the decorating.
0:24:13 > 0:24:16And then when you go on your travels and your great big adventure,
0:24:16 > 0:24:19- are you going to rent it out, then? - Yeah, rent it out.
0:24:19 > 0:24:22- And then when you come back, will you move in here?- Yeah.
0:24:22 > 0:24:25Properly settle down. I don't know whether I'll stay here,
0:24:25 > 0:24:28- but I will move back year.- Right.
0:24:28 > 0:24:30Well, congratulations with the house
0:24:30 > 0:24:33- and good luck with your year of adventure.- Yeah, thank you.
0:24:33 > 0:24:35- Look forward to seeing how you get on.- Thank you very much.
0:24:35 > 0:24:37- Nice to meet you.- You too. - Thank you.
0:24:39 > 0:24:43Well, Rita adopting a slightly unconventional attitude
0:24:43 > 0:24:45towards buying at auction!
0:24:45 > 0:24:4850 minutes before the auction - not ideal.
0:24:48 > 0:24:50Don't do what she did.
0:24:50 > 0:24:53But it seems like she's got herself a really good property here,
0:24:53 > 0:24:57and what a fantastic year she has ahead. How will that go?
0:24:57 > 0:25:01How will the house turn out? You can find out later in the show.
0:25:02 > 0:25:05Coming up, something for nothing -
0:25:05 > 0:25:09the rent from two cafes in Eastbourne produces a welcome bonus.
0:25:09 > 0:25:12Basically I'm left with the flat for free.
0:25:13 > 0:25:18And in Derbyshire, what has Rita learned about buying at auction?
0:25:18 > 0:25:21Make sure you go in and look round first.
0:25:21 > 0:25:22SHE LAUGHS
0:25:26 > 0:25:29We're going back to Bassett now, just north of Southampton,
0:25:29 > 0:25:34where earlier, I discovered a house hidden by a jungle of undergrowth.
0:25:35 > 0:25:38It had been left empty for some time,
0:25:38 > 0:25:42and cracks had more than begun to show, making it unmortgageable.
0:25:44 > 0:25:47Crack here, which isn't a good sign, as you come upstairs.
0:25:47 > 0:25:49One to the ceiling as well.
0:25:49 > 0:25:52Now, if you thought that was a crack, have a look at this.
0:25:52 > 0:25:54Look at that.
0:25:54 > 0:25:57That is one big crack.
0:25:59 > 0:26:02The cracks in this four-bedroom detached house didn't deter
0:26:02 > 0:26:05Mick and Penny, who own a building company.
0:26:05 > 0:26:10They bought it for £330,000, plan to refurbish and sell it on.
0:26:10 > 0:26:13But at first, they weren't even going to bid.
0:26:13 > 0:26:15We actually thought it was a building plot.
0:26:15 > 0:26:19Because we've got quite a few building plots on the go, we were interested.
0:26:19 > 0:26:22And it was when we were both sat in the auction room, we said,
0:26:22 > 0:26:24"This is a house, it's not a building plot."
0:26:24 > 0:26:27We just said, "Well, it's a good area, let's go for it."
0:26:27 > 0:26:30Hoping to get five, six bedrooms, move the kitchen around,
0:26:30 > 0:26:35build above the garage and the existing second living room.
0:26:35 > 0:26:36- OK.- If they don't come off,
0:26:36 > 0:26:39then we'll just knock it down and build a new house.
0:26:39 > 0:26:42And 10 months later, when we returned,
0:26:42 > 0:26:44it looked like Mick had done just that.
0:26:52 > 0:26:55The once '50s throwback hidden by its own grounds
0:26:55 > 0:26:58has become the best house on the street, and for me,
0:26:58 > 0:27:01it's definitely a case of love at first sight.
0:27:03 > 0:27:06# Oooh-oooh, hey, hey
0:27:06 > 0:27:08# Looking for
0:27:08 > 0:27:11# Looking for love again
0:27:11 > 0:27:15# Oooh-oooh, hey, hey... #
0:27:15 > 0:27:18Having had four - yes, four - extensions,
0:27:18 > 0:27:21it's difficult to compare this to its ancestor.
0:27:21 > 0:27:22But I do like a challenge.
0:27:24 > 0:27:26Remember the back of the old garage?
0:27:26 > 0:27:29It's now a dining room.
0:27:29 > 0:27:32It overlooks a fabulous high-spec kitchen,
0:27:32 > 0:27:34and like every other room in the house,
0:27:34 > 0:27:37it now has a different purpose to the one it started with.
0:27:56 > 0:27:58The old kitchen is now a study
0:27:58 > 0:28:00and downstairs toilet.
0:28:03 > 0:28:07And the area that was a downstairs bathroom is now a utility room.
0:28:07 > 0:28:12# Oooh-oooh, hey, hey... #
0:28:12 > 0:28:14Upstairs now to the five bedrooms.
0:28:20 > 0:28:22The house comprises of two wings.
0:28:22 > 0:28:24In this wing, there's an en-suite bedroom...
0:28:27 > 0:28:31..and three smaller bedroom served by a family bathroom.
0:28:31 > 0:28:34It's hardly surprising that most of the rooms aren't recognisable.
0:28:34 > 0:28:38The extensions have taken what was a 2,000 square foot house
0:28:38 > 0:28:41up to 3,500 square foot house.
0:28:47 > 0:28:51In the other wing above the kitchen, there's a master en suite bedroom.
0:28:51 > 0:28:52# Looking for
0:28:52 > 0:28:55# Looking for love again. #
0:28:55 > 0:28:58And finally, the games room cum home cinema.
0:29:00 > 0:29:03The structural engineer found that most of the cracks
0:29:03 > 0:29:06were caused by failing wooden lintels above the windows.
0:29:06 > 0:29:10He gave the go-ahead to refurbish, but there were some planning delays.
0:29:12 > 0:29:16We had no complaints, so they made us wait another two weeks,
0:29:16 > 0:29:18so they could actually ask the neighbours again,
0:29:18 > 0:29:21which was unusual. Very unusual, really.
0:29:22 > 0:29:25I think it's enhanced all their properties,
0:29:25 > 0:29:28and lots of neighbours have had the guided tour,
0:29:28 > 0:29:32so they're all very pleased with the end product.
0:29:32 > 0:29:34Once underway, how did the timescale match up
0:29:34 > 0:29:37to the original estimate of four to six months?
0:29:37 > 0:29:3920 weeks the lads have been on-site.
0:29:39 > 0:29:4220 weeks! That's amazing.
0:29:42 > 0:29:46How about the estimated budget of £150,000?
0:29:46 > 0:29:48The figure is just shy of 300,000
0:29:48 > 0:29:50that was spent on labour and materials.
0:29:50 > 0:29:52Whoa, that's not good.
0:29:52 > 0:29:55100% overspend? What's been going on?
0:29:55 > 0:29:58All the specifications of the tiles, the kitchen, the bathrooms,
0:29:58 > 0:30:00have all gone up a couple of pegs, you know,
0:30:00 > 0:30:03to justify the area that the house is now in.
0:30:03 > 0:30:05That was our decision.
0:30:05 > 0:30:08Well, let's hope it was a wise decision.
0:30:08 > 0:30:11We called in two local estate agents to find out.
0:30:11 > 0:30:15Mick and Penny paid £330,000 for the property,
0:30:15 > 0:30:18with another 300 grand refurbishing it.
0:30:18 > 0:30:20Let's start with the agent who saw the property before.
0:30:22 > 0:30:26The changes they've made since I last saw it - it's amazing.
0:30:26 > 0:30:28I mean, from when you were initially first here,
0:30:28 > 0:30:31you could hardly even see there was a house.
0:30:31 > 0:30:34The level of work that they have done is fantastic.
0:30:34 > 0:30:38With the extensions and the modifications they've made inside,
0:30:38 > 0:30:40they've made a really spectacular house.
0:30:40 > 0:30:43Amazing property. They've done a fantastic job
0:30:43 > 0:30:45getting it to this level. The specification
0:30:45 > 0:30:47is one of the best I've seen in recent years.
0:30:47 > 0:30:50Are there any negatives regarding the refurbishment?
0:30:50 > 0:30:53I think potentially losing the garage
0:30:53 > 0:30:55might have been a slight gamble.
0:30:55 > 0:30:58But saying that, the dining room that they've created
0:30:58 > 0:31:00is really, really nice.
0:31:00 > 0:31:03It's purely just at this end of the market, I do imagine somebody
0:31:03 > 0:31:07might have a fairly nice vehicle they'd like to tuck away.
0:31:07 > 0:31:09It's missing a garage. If someone's got two classic cars
0:31:09 > 0:31:11or three motorbikes or something like that,
0:31:11 > 0:31:14they might not buy it because of the lack of a garage.
0:31:14 > 0:31:16Mick and Penny bought purely to sell on,
0:31:16 > 0:31:20so having spent 630 grand in total, what's it worth?
0:31:20 > 0:31:22I value this property at £750,000,
0:31:22 > 0:31:26and would go with a guide price of £760,000.
0:31:26 > 0:31:27If the property was to be marketed,
0:31:27 > 0:31:31I'd recommend an asking price of £800,000.
0:31:31 > 0:31:34Wow. At that top figure, that's a potential profit
0:31:34 > 0:31:38of 170 grand before taxes and expenses.
0:31:38 > 0:31:41What does Miss Moneypenny think about that?
0:31:41 > 0:31:45779,950 is what I was hoping for.
0:31:45 > 0:31:47Yeah, I mean, either of those would be good.
0:31:47 > 0:31:50But, yeah, the higher one sounds great. Yeah, sounds good.
0:31:50 > 0:31:52- Gives us a holiday, doesn't it?- Yes.
0:31:52 > 0:31:55A well-deserved holiday, too.
0:31:55 > 0:31:59How about some tips for the viewers who want to emulate your success?
0:31:59 > 0:32:02Have the right trades is very important.
0:32:02 > 0:32:06A good architect. And know the area you're building in.
0:32:06 > 0:32:07That's really important.
0:32:07 > 0:32:10That, and a bit of luck finding a hidden gem.
0:32:16 > 0:32:20Eastbourne in East Sussex has been a popular seaside retreat
0:32:20 > 0:32:24since Victorian times, with tourists flocking to its piers,
0:32:24 > 0:32:27promenades, and for a paddle in the sea.
0:32:27 > 0:32:30# Grab yourself an old suitcase
0:32:30 > 0:32:32# If you need to get away
0:32:32 > 0:32:36# I can show you the perfect place... #
0:32:37 > 0:32:39Well, this area is known as Little Chelsea.
0:32:39 > 0:32:42It's kind of Eastbourne's equivalent of Brighton's Lanes.
0:32:42 > 0:32:44Lots of sole traders.
0:32:44 > 0:32:47You've got restaurants, cafes - there's a real buzz here.
0:32:47 > 0:32:51The railway station is 150 yards away in a great location,
0:32:51 > 0:32:54and the seafront? Well, it's literally just over there.
0:32:55 > 0:32:58But I've not come to dip my toes at the beach today.
0:32:58 > 0:33:01I'm here to whet my appetite for a complex lot
0:33:01 > 0:33:04of commercial and residential.
0:33:04 > 0:33:08Guided at 245-255,000,
0:33:08 > 0:33:10this lot is made up of a two bed flat
0:33:10 > 0:33:13and these two commercial premises.
0:33:13 > 0:33:15But that's not all.
0:33:15 > 0:33:17You also get the freehold of another shop
0:33:17 > 0:33:21and another two bed flat that you can see on the right-hand side.
0:33:24 > 0:33:26Certainly a complex menu of properties.
0:33:26 > 0:33:29But mouthwatering, I'm sure you'll agree.
0:33:29 > 0:33:33Let's find out what you get, then, starting with the two bed flat.
0:33:36 > 0:33:39So straight into the flat, you've got these little stairs here,
0:33:39 > 0:33:42and I won't lie, the first thing I notice...
0:33:42 > 0:33:45- SHE SNIFFS - ..is the food smells from downstairs.
0:33:45 > 0:33:48But there's got to be some sort of pay-off, hasn't there?
0:33:48 > 0:33:51And I think it's because - look how spacious this flat is!
0:33:51 > 0:33:53A landing with all the rooms going off.
0:33:53 > 0:33:55That is a huge bedroom.
0:33:55 > 0:33:58You know, I can imagine tenants not arguing over which room
0:33:58 > 0:33:59they're going to have,
0:33:59 > 0:34:02because that is also an even bigger bedroom than that one.
0:34:02 > 0:34:05You've got quite a small kitchen through there, so you could
0:34:05 > 0:34:08potentially think about swapping the kitchen for the bedroom.
0:34:08 > 0:34:12There's all sorts you could do. The bathroom, again, is humongous.
0:34:12 > 0:34:15And then right through here, at the front of the property,
0:34:15 > 0:34:17you've got the sitting room area.
0:34:17 > 0:34:19Again, a fantastic space.
0:34:19 > 0:34:21There's a little bit of character here.
0:34:21 > 0:34:24I mean, I think this is a really great flat.
0:34:24 > 0:34:27I can see it renting like that, because look -
0:34:27 > 0:34:29you're right on the high street.
0:34:29 > 0:34:31Chinese, deli, Thai.
0:34:31 > 0:34:33You've got little cafes over the road.
0:34:33 > 0:34:36I think I'd quite enjoy living on this high street.
0:34:36 > 0:34:38It's all going on.
0:34:38 > 0:34:43# Hey, I put some new shoes on and suddenly everything's right... #
0:34:43 > 0:34:46Ooh, yes, feeling chipper and on my way to strut down the high street,
0:34:46 > 0:34:49I find the source of the food smells -
0:34:49 > 0:34:53two nice little eateries that each rent for £10,000 a year.
0:34:53 > 0:34:56A good investment. The downside is,
0:34:56 > 0:34:59they might make getting a mortgage on the flat tricky,
0:34:59 > 0:35:02affecting its value and narrowing the appeal.
0:35:03 > 0:35:06At the back of the shops and the flat,
0:35:06 > 0:35:09there's a very pleasant courtyard, and from here, you can better see
0:35:09 > 0:35:13the other shop and the other flat which you only own the freehold of.
0:35:16 > 0:35:19All good so far. And crystal clear?
0:35:19 > 0:35:22So let's just be clear about this one, if possible!
0:35:22 > 0:35:27With this lot, you also own the whole freehold only
0:35:27 > 0:35:31of this building, earning you a ground rent of £150 per year.
0:35:31 > 0:35:34Now, it would be normal in most leases for commercial
0:35:34 > 0:35:37and residential properties that the landlord would manage
0:35:37 > 0:35:40the repairs and the decor and recover that money from the honours.
0:35:40 > 0:35:43However, sometimes the tenants just don't have the cash,
0:35:43 > 0:35:46so it can leave you a bit high and dry.
0:35:46 > 0:35:49Leaky roofs, broken guttering or subsidence
0:35:49 > 0:35:53all need to be attended to if you're the freeholder.
0:35:53 > 0:35:55Owning a freehold property is...
0:35:55 > 0:35:57Well, it's just like being a landlord, I suppose.
0:35:57 > 0:36:00So in this case, for 150 quid a year,
0:36:00 > 0:36:02is it really worth the hassle?
0:36:04 > 0:36:06Why not save yourself the hassle
0:36:06 > 0:36:09and sell the freehold of this shop and flat?
0:36:09 > 0:36:13Surely the investment potential here is in renting the commercial spaces
0:36:13 > 0:36:15and the other flat we saw.
0:36:16 > 0:36:21One way to know its true potential is to ask a local property expert.
0:36:21 > 0:36:24Firstly, what would he do with the freehold properties?
0:36:24 > 0:36:28For £150 a year, it's just a nuisance purchase.
0:36:28 > 0:36:31What will almost certainly happen is that he will offer
0:36:31 > 0:36:34the freehold to either one or both of those tenants,
0:36:34 > 0:36:36and they might or might not want to buy it,
0:36:36 > 0:36:39or they might or might not be able to afford to buy it.
0:36:39 > 0:36:41If they don't or can't,
0:36:41 > 0:36:45then he may well put it on the open market in an auction,
0:36:45 > 0:36:49probably a guide price of £2,000, £3,000, something like that.
0:36:49 > 0:36:51And fingers crossed he'll get rid of it.
0:36:51 > 0:36:55So you could get a few grand for those freeholds.
0:36:55 > 0:36:56Well, that's a decent start.
0:36:56 > 0:37:00The agent notes that the two shops are on fixed leases,
0:37:00 > 0:37:03so you can't change that rental income in the short term.
0:37:03 > 0:37:06And with mortgageability problems with the flat above them,
0:37:06 > 0:37:08perhaps it would be better rented.
0:37:09 > 0:37:12So what could it achieve on the rental market?
0:37:14 > 0:37:17The shops, they're fixed for the time being, so that's 20,000.
0:37:17 > 0:37:21On this flat, once you've actually improved it,
0:37:21 > 0:37:23you're going to be just short of 700 a month.
0:37:23 > 0:37:25That 8,400 a year.
0:37:25 > 0:37:29So 28,000, 28,500 is the sort of income
0:37:29 > 0:37:32I expect this to be earning when all is said and done.
0:37:32 > 0:37:36If you got the lot for the guide price of 255 grand,
0:37:36 > 0:37:39that could be an 11% yield on the block.
0:37:39 > 0:37:43The agent thought the flat could sell for 125,000,
0:37:43 > 0:37:46though you'd probably be looking for a cash buyer.
0:37:47 > 0:37:51There's so much going on here, but broken down, what have you got?
0:37:51 > 0:37:54Well, I think it's a very lucrative little lot.
0:37:54 > 0:37:57You own the freehold next door, you've got two shops,
0:37:57 > 0:38:00which at the moment are rented out and run as restaurants.
0:38:00 > 0:38:03Then you've got the two bed flat upstairs which you can renovate
0:38:03 > 0:38:06and rent out, or even sell on to a cash buyer.
0:38:06 > 0:38:10Let's see who spotted this fantastic opportunity at the auction.
0:38:12 > 0:38:14We're going to go on to lot number 81.
0:38:14 > 0:38:16With a guide price anywhere the lot's of interest, 250,000.
0:38:16 > 0:38:20Massive return on this one. 250,000 anywhere?
0:38:20 > 0:38:21Give me 240 to start it, then.
0:38:21 > 0:38:23240,000. 240 I've got.
0:38:23 > 0:38:25And five? 245.
0:38:25 > 0:38:27And 250? 250.
0:38:27 > 0:38:28And five?
0:38:28 > 0:38:30250 I've got. 255 I'm now after.
0:38:30 > 0:38:33We all done at 250 in the middle row?
0:38:33 > 0:38:34252 I'll take if it helps.
0:38:34 > 0:38:36252, back to the main bidder.
0:38:36 > 0:38:38255? 255.
0:38:38 > 0:38:39257?
0:38:39 > 0:38:42Are we all done at 255? Sure you're out in the back right?
0:38:42 > 0:38:45It will be sold at 255, make no mistake.
0:38:45 > 0:38:47255,
0:38:47 > 0:38:49the gentleman sitting down, for the first time, then.
0:38:49 > 0:38:52255, for the second time.
0:38:52 > 0:38:55Third and final time at 255,000.
0:38:55 > 0:38:57If you're sure and you're all done, it will be sold.
0:38:57 > 0:39:00Yours for 255. And your number is?
0:39:02 > 0:39:05Giving it a very big "yes!" on getting the lot
0:39:05 > 0:39:07for 255 grand was Anthony.
0:39:09 > 0:39:11He's a former PR for property developers,
0:39:11 > 0:39:15and has plenty of experience in renovating himself.
0:39:15 > 0:39:18But what did he have planned for all of this?
0:39:18 > 0:39:20- Anthony, congratulations. - Thank you very much.
0:39:20 > 0:39:23- Lovely to meet you today. - Very nice to meet you.
0:39:23 > 0:39:25Right, so you've got a bit of a selection of bits and pieces
0:39:25 > 0:39:28- all thrown into this one lot. - Yes.- Talk me through them
0:39:28 > 0:39:31and why you felt it was right for you to bid for this.
0:39:31 > 0:39:34So the lot that I've bought consists of
0:39:34 > 0:39:37two restaurants with a flat above it.
0:39:37 > 0:39:40Which is this flat upstairs, which is fantastic.
0:39:40 > 0:39:43Which I have the whole freehold of. So I own those outright.
0:39:43 > 0:39:46And there is also attached to those another shop
0:39:46 > 0:39:49with another flat above it, for which I only own the ground rents.
0:39:49 > 0:39:51So they provide a very, very small income.
0:39:51 > 0:39:55Now let's talk about the ground rent opportunities. How do you see that?
0:39:55 > 0:39:57Is that something worth holding on to for you?
0:39:57 > 0:40:01- Do you think that got thrown into it?- Yeah, I don't want it,
0:40:01 > 0:40:03because basically it's more aggravation than it's worth.
0:40:03 > 0:40:06The ground rent is £150 a year,
0:40:06 > 0:40:09but I'm still responsible for that building.
0:40:09 > 0:40:11I'd just much rather be rid of them,
0:40:11 > 0:40:14and if I get £2,000 or £3,000 from them, selling them,
0:40:14 > 0:40:18then fine, but not really bothered about that one.
0:40:18 > 0:40:22Anthony plans to sell the two freehold-only leases,
0:40:22 > 0:40:25preferably to the residents of the flat and the business.
0:40:25 > 0:40:28But what was it that attracted him to this lot?
0:40:29 > 0:40:31It's a lovely flat, but I think
0:40:31 > 0:40:35it was the whole that was important for me.
0:40:35 > 0:40:38Because it meant the two restaurants are on long ten-year leases,
0:40:38 > 0:40:41and therefore have a guaranteed income.
0:40:41 > 0:40:45That income more than pays for how much it cost me to borrow the money.
0:40:45 > 0:40:48Much more than pays. So I'll have a little bit of spare income
0:40:48 > 0:40:51from that, which is covering everything,
0:40:51 > 0:40:54and then basically I'm left with the flat for free.
0:40:54 > 0:40:58So the idea is, do it up to a reasonable standard,
0:40:58 > 0:41:03- and then look for, in all opportunity, a cash buyer.- That's good. I was a bit worried then
0:41:03 > 0:41:07that we might come back and you might not have done anything, and it might have been sold!
0:41:07 > 0:41:09- So at least we're going to have something to see.- You might!
0:41:09 > 0:41:12So you are looking to make changes here?
0:41:12 > 0:41:15In a word, it's not worth doing too much. If this flat was in Clapham,
0:41:15 > 0:41:18you could see it would be very easy, you'd maybe chop it into
0:41:18 > 0:41:21three bedrooms, put an en-suite in the room we're in at the moment.
0:41:21 > 0:41:23But here, it's just not worth it.
0:41:23 > 0:41:26Experience and research look to have really paid off here.
0:41:26 > 0:41:29Anthony knows how to make this project work for him.
0:41:29 > 0:41:32He plans a four to six week renovation.
0:41:32 > 0:41:34But what budget has he set?
0:41:34 > 0:41:37About, sort of, 15,000, I think.
0:41:37 > 0:41:41- That's quite a healthy budget, I'd say.- It's quite a healthy budget, but I think you've got to put in
0:41:41 > 0:41:44a reasonably decent kitchen, and I think people want that now.
0:41:44 > 0:41:46And a nice bathroom. And as you've seen,
0:41:46 > 0:41:50- a lot of tiles need to go in that bathroom. - Yes, that's a big old bathroom.
0:41:50 > 0:41:52Half the budget is on tiles in the bathroom, I think!
0:41:52 > 0:41:56You see, now, I'm going to talk to you about that. I would just do an area around the bath.
0:41:56 > 0:41:58I definitely don't think you need to do the whole room.
0:41:58 > 0:42:01No, I think the plan is, I'm going to build
0:42:01 > 0:42:04a slightly false floor in there. So you'll step up.
0:42:04 > 0:42:08So there'll be an area, almost like an entrance area to the bathroom,
0:42:08 > 0:42:11and then you'll step up into a totally tiled thing. There are bits of things we have to do,
0:42:11 > 0:42:16but it's not massive. There's nothing structural, I'm not going to be messing around with the walls
0:42:16 > 0:42:19- and things like that. So I'm very pleased.- So if you do manage to sell the lease,
0:42:19 > 0:42:22you manage to sell the flat, you just don't have to do anything
0:42:22 > 0:42:24apart from sit back and wait to be paid
0:42:24 > 0:42:26- as a landlord from your two businesses.- Yeah, that's right,
0:42:26 > 0:42:30and I'll have a big chunk of capital to put into the next project.
0:42:30 > 0:42:33It all seems to be going too well for you at the moment.
0:42:33 > 0:42:36- You do worry, don't you?- I am very happy for you.- Thank you very much.
0:42:36 > 0:42:39And it'll be interesting to see what happens and the outcome when we come back.
0:42:39 > 0:42:43- But good luck.- Thank you very much. - And we'll be back to check up. Good luck. Thank you.
0:42:43 > 0:42:47Well, Anthony seems very pleased with himself,
0:42:47 > 0:42:50and so he should, because research really did pay off,
0:42:50 > 0:42:52and I think he's come out on top here.
0:42:52 > 0:42:55But will he have sold the flat and the lease next door
0:42:55 > 0:42:58before we've even had a chance to come back here?!
0:42:58 > 0:43:02Join us later in the programme and you can find out how he gets on.
0:43:04 > 0:43:07So, we've seen the results of one of today's properties.
0:43:07 > 0:43:08What about the other two?
0:43:08 > 0:43:12Yeah, have there been a lot of changes or are they exactly the same?
0:43:12 > 0:43:13Let's find out.
0:43:16 > 0:43:20It's back to Derbyshire now, and the lovely little village of Padfield.
0:43:21 > 0:43:25It was in amongst the rolling hills and stone terraces
0:43:25 > 0:43:27that I came across this two-bed property
0:43:27 > 0:43:31that had a guide price of £80,000-£90,000.
0:43:31 > 0:43:33Plenty of work was needed in this property,
0:43:33 > 0:43:36but I could really see the potential here, despite some,
0:43:36 > 0:43:39shall we say, visionary decorative choices?
0:43:44 > 0:43:46You don't see that every day, do you?
0:43:46 > 0:43:48A window.
0:43:48 > 0:43:52'Yup, affording a very nice view of the kitchen,
0:43:52 > 0:43:56'and upstairs, there was a further glaring, glazing gaffe.'
0:43:56 > 0:44:00Another window in the middle of a wall. I've only just noticed that.
0:44:00 > 0:44:02Wow.
0:44:02 > 0:44:04Plenty of people on auction day could see through
0:44:04 > 0:44:07the decorative decisions and identify the property's potential,
0:44:07 > 0:44:10with it eventually selling for £90,000.
0:44:10 > 0:44:12Selling away to you, sir.
0:44:12 > 0:44:14Congratulations.
0:44:14 > 0:44:18Enlisting the help of her friend and builder Steve to do the bidding
0:44:18 > 0:44:20was barmaid Rita, who, it must be said,
0:44:20 > 0:44:22hadn't exactly done her research.
0:44:24 > 0:44:26Tell me why you wanted to buy this place.
0:44:26 > 0:44:29- Well, I didn't, really. It came as an accident.- Oh, right. Huh?
0:44:29 > 0:44:33I saw this property, and when I rang up, they said, "It's up for auction."
0:44:33 > 0:44:36Oh, I said, "When's the auction?" And they went, "Today."
0:44:36 > 0:44:39I went, "And what time's that?"
0:44:39 > 0:44:41They said 2pm. This was 1.10pm,
0:44:41 > 0:44:44so I gets in my car, goes there, and wallop,
0:44:44 > 0:44:46hand up, gets this house.
0:44:46 > 0:44:50Yes, with barely a second thought, Rita had bought the house unseen.
0:44:52 > 0:44:56With retirement and a long list of travel plans on the horizon,
0:44:56 > 0:45:00Rita planned to use this property for income to fund her trips,
0:45:00 > 0:45:01and as a base to come back to.
0:45:05 > 0:45:07It's now eight months down the line
0:45:07 > 0:45:11and time for us to see how Rita has got on.
0:45:11 > 0:45:13MUSIC: A Change Would Do You Good by Sheryl Crow
0:45:13 > 0:45:18- # A change would do you good - A change would do you good
0:45:18 > 0:45:21- # I think a change - A change would do you good
0:45:21 > 0:45:23# Would do you good
0:45:23 > 0:45:26# A change would do you good
0:45:26 > 0:45:29- # A change - A change would do you good
0:45:29 > 0:45:30# Would do you good
0:45:30 > 0:45:33# A change would do you good
0:45:33 > 0:45:36- # I think a change - A change would do you good
0:45:36 > 0:45:38# Would do you good... #
0:45:38 > 0:45:42Wow. Contemporary, slick, and at the same time, cosy and inviting -
0:45:42 > 0:45:46the downstairs, from top to bottom, is transformed.
0:45:51 > 0:45:55Upstairs, and the excellent transformation continues,
0:45:55 > 0:45:57with Rita moving the partition wall
0:45:57 > 0:46:01to create a bigger bathroom, complete with shower and bath.
0:46:03 > 0:46:06- # A change - A change would do you good
0:46:06 > 0:46:10- # Would do you good - A change would do you good
0:46:10 > 0:46:14- # I think a change - A change would do you good
0:46:14 > 0:46:19- # Would do you good - A change would do you good...- #
0:46:24 > 0:46:27I know it's a cliche, but I'm going to say it anyway -
0:46:27 > 0:46:30this house has become a home.
0:46:31 > 0:46:34The back has been spruced up,
0:46:34 > 0:46:37and the front has also had a bit of polish,
0:46:37 > 0:46:39and is welcoming and appealing.
0:46:40 > 0:46:43Time, I think, to hear from the lady herself.
0:46:43 > 0:46:47Well, it'd had new windows, new boiler, new heating,
0:46:47 > 0:46:50damp-proof, new plaster, new ceilings,
0:46:50 > 0:46:52as you can see, everything...
0:46:52 > 0:46:54New flooring's in some of the places,
0:46:54 > 0:46:56moved a wall upstairs,
0:46:56 > 0:46:58done all the bathroom...
0:46:58 > 0:47:00There was a big airing cupboard that was fully bricked
0:47:00 > 0:47:02that had to be knocked down.
0:47:02 > 0:47:05There was, like, a shower in the big bedroom that had to be
0:47:05 > 0:47:07knocked down, so...
0:47:07 > 0:47:10Yeah, and the kitchen - that all got knocked out.
0:47:10 > 0:47:12Brand-new kitchen, new bathroom.
0:47:12 > 0:47:14Mostly everything, really.
0:47:14 > 0:47:17All-new skirting boards - had to be replaced.
0:47:17 > 0:47:20I'm happy how it turned out. It's...
0:47:20 > 0:47:22you know, turned out better than I thought it would do,
0:47:22 > 0:47:24with the kitchen and the bathroom.
0:47:24 > 0:47:26It's turned out quite good.
0:47:26 > 0:47:30Quite good. Well, Rita is a good northern girl,
0:47:30 > 0:47:33and not one to blow her own trumpet, but I'll say it -
0:47:33 > 0:47:37she's done a fantastic job and should be very proud.
0:47:37 > 0:47:40She was planning on going on a long holiday,
0:47:40 > 0:47:42but those plans are now on hold,
0:47:42 > 0:47:45with Rita quite happy to live in the property itself,
0:47:45 > 0:47:48and decide whether to rent, sell or continue living here
0:47:48 > 0:47:50further down the line.
0:47:50 > 0:47:54The project has taken her to £19,000 -
0:47:54 > 0:47:58a little under a maximum budget - but I'm glad to see the money was
0:47:58 > 0:48:01found to repurpose the window at the bottom of the stairs.
0:48:03 > 0:48:08There were unforeseen circumstances that extended Rita's timescale.
0:48:09 > 0:48:12Well, it should have been about 12 weeks, but the snow came,
0:48:12 > 0:48:15and I couldn't get to the house, obviously,
0:48:15 > 0:48:18and then I had to change and find other builders.
0:48:18 > 0:48:20It turned out OK.
0:48:20 > 0:48:22I just did a bit of delegating.
0:48:24 > 0:48:27Renovating a house can be full of unforeseen challenges,
0:48:27 > 0:48:29but thankfully, in this case,
0:48:29 > 0:48:31Rita's been able to roll with the punches
0:48:31 > 0:48:35and taken to the art of delegation like a fish to water.
0:48:40 > 0:48:44So, with Rita investing a total of £109,000,
0:48:44 > 0:48:47and unsure whether she'll rent or sell in the future,
0:48:47 > 0:48:52let's hear the thoughts of two local estate agents.
0:48:52 > 0:48:55So, before this went to auction, we actually marketed this property,
0:48:55 > 0:48:57so I am actually aware of the property, and to be honest,
0:48:57 > 0:48:59from what it looked like then to now, there's no comparison.
0:48:59 > 0:49:02The standard of the finish in the property is absolutely fantastic.
0:49:02 > 0:49:05Again, the kitchen and bathroom to a really high standard,
0:49:05 > 0:49:07which is what everybody's looking for now.
0:49:07 > 0:49:09It's done to a really, really high standard,
0:49:09 > 0:49:10but I think it should have a, as I say,
0:49:10 > 0:49:13quite a wide appeal in terms of the audience,
0:49:13 > 0:49:15and I think the potential buyer would pay a premium for...
0:49:15 > 0:49:17due to the standard, really.
0:49:17 > 0:49:19The agents are impressed,
0:49:19 > 0:49:22but will they impress Rita with their valuations?
0:49:22 > 0:49:24Rental first.
0:49:24 > 0:49:25In the rental market,
0:49:25 > 0:49:28this property should achieve £550 per calendar month.
0:49:28 > 0:49:29In the rental market,
0:49:29 > 0:49:33I think this property could achieve £575 per calendar month.
0:49:33 > 0:49:35If we took that top valuation,
0:49:35 > 0:49:39it would mean a healthy yield of just under 6.5%.
0:49:39 > 0:49:41So, what about resale?
0:49:41 > 0:49:44I would suggest in the sales market,
0:49:44 > 0:49:47for this property to achieve between £125-£130,000.
0:49:47 > 0:49:49In the sales market,
0:49:49 > 0:49:53I think this property could achieve between £125-£130,000.
0:49:53 > 0:49:57So, if you were to sell for £130,000,
0:49:57 > 0:50:02that would mean a very nice little pre-tax profit of around £21,000.
0:50:04 > 0:50:07Whilst Rita has enjoyed the experience, she has one piece
0:50:07 > 0:50:12of very important advice for anyone thinking of buying at auction.
0:50:13 > 0:50:15Make sure you go in and look round first.
0:50:22 > 0:50:24Now, back to Eastbourne in East Sussex,
0:50:24 > 0:50:25and if I were you,
0:50:25 > 0:50:28I'd get a pen and paper ready to take down some details,
0:50:28 > 0:50:29because earlier,
0:50:29 > 0:50:34I looked into a complex arrangement involving three shops and two flats.
0:50:34 > 0:50:38Now, the lot was bought for £255,000 by Anthony,
0:50:38 > 0:50:41who explained the finer details of the deal.
0:50:43 > 0:50:49The lot that I've bought consists of two restaurants with a flat above it,
0:50:49 > 0:50:50so I own those outright,
0:50:50 > 0:50:52and there is also, attached to those,
0:50:52 > 0:50:55another shop with another flat above it,
0:50:55 > 0:50:58which I only own the ground rent, and they're on long leases,
0:50:58 > 0:51:00so they provide a very, very small income.
0:51:00 > 0:51:01Much clearer.
0:51:01 > 0:51:05So, Anthony was intending selling the freehold of next-door's
0:51:05 > 0:51:09shop and flat, for which he only gets a small ground rent.
0:51:09 > 0:51:11Hopefully, to the existing tenants,
0:51:11 > 0:51:15leaving him with just two shops - currently restaurants -
0:51:15 > 0:51:17and a flat above.
0:51:17 > 0:51:20The two restaurants are on long, ten-year leases,
0:51:20 > 0:51:22and therefore have a guaranteed income.
0:51:22 > 0:51:25That income more than pays for how much it cost me
0:51:25 > 0:51:30to borrow the money, and basically, I'm left with a flat for free,
0:51:30 > 0:51:34so, the idea is, do it up to a reasonable standard,
0:51:34 > 0:51:38and then look for, in all opportunity, a cash buyer.
0:51:38 > 0:51:40With it so far? Good, because from here on,
0:51:40 > 0:51:43- it gets complicated. - SHE GIGGLES
0:51:43 > 0:51:47Anthony budgeted £15-£20,000 to do up his free flat,
0:51:47 > 0:51:50and thought six to eight weeks would see it completed.
0:51:50 > 0:51:54Well, we're back after eight weeks to see what he's done.
0:52:03 > 0:52:06Well, the bathroom's a definite improvement,
0:52:06 > 0:52:09with a brand-new suite and tiles, and the pea-shaped bath
0:52:09 > 0:52:12makes the most of the room's long, narrow shape.
0:52:14 > 0:52:16The kitchen as was had seen better days.
0:52:18 > 0:52:23Now, new units, worktops and sockets have rejuvenated the space,
0:52:23 > 0:52:25to say nothing of the marble tiles,
0:52:25 > 0:52:28which could be for a high gloss and a high-class finish.
0:52:35 > 0:52:39With a few final electrics to sort out, and some new carpets,
0:52:39 > 0:52:43Anthony has plenty of choice about what to do with his properties.
0:52:43 > 0:52:45Remember the two shops below?
0:52:45 > 0:52:48So, he could rent or sell the flat on its own,
0:52:48 > 0:52:52sell both commercial units and rent out the flat,
0:52:52 > 0:52:56rent out the flat and sell one of the commercial units..
0:52:56 > 0:53:00- SHE YAWNS AND HER VOICE ECHOES - ..or sell both commercial units.
0:53:02 > 0:53:04I told you it was going to get complicated.
0:53:04 > 0:53:06I hope you were paying attention.
0:53:10 > 0:53:14But before we deal with the sticky topic of valuations,
0:53:14 > 0:53:15you can put your pen and paper down now,
0:53:15 > 0:53:19because here's Anthony to explain some of the refurbishment issues,
0:53:19 > 0:53:22like the problematic bathroom.
0:53:22 > 0:53:25The problem is that it's in the middle of the house,
0:53:25 > 0:53:28so it's quite a way from the actual bath to
0:53:28 > 0:53:31the drains on either side of the house,
0:53:31 > 0:53:33and we had to raise the whole floor,
0:53:33 > 0:53:35so we put a false floor in the bathroom first. Excuse me.
0:53:35 > 0:53:39PHONE PLAYS OPERA MUSIC
0:53:39 > 0:53:40I bet it's just...
0:53:40 > 0:53:43Hello? Hello?
0:53:43 > 0:53:45- SHE CHUCKLES - That's OK.
0:53:45 > 0:53:47We'll carry on without you.
0:53:47 > 0:53:51So, the full floor in the bathroom meant the bath could drain better,
0:53:51 > 0:53:53but that wasn't the only plumbing issue,
0:53:53 > 0:53:56as Anthony, who's now finished his call, can explain.
0:53:56 > 0:53:59Instead of using elbow joints in the plumbing,
0:53:59 > 0:54:01they'd just bent the pipe,
0:54:01 > 0:54:04so of course, when you moved it, that split,
0:54:04 > 0:54:07so we did have to pretty much replace all of the plumbing.
0:54:07 > 0:54:09Seeing as I own the restaurants below,
0:54:09 > 0:54:11it was pretty important that we had all that done,
0:54:11 > 0:54:15so that was the, really, only job that I didn't foresee.
0:54:15 > 0:54:18So what impact did the unforeseen job have
0:54:18 > 0:54:22on Anthony's £15-£20,000 budget?
0:54:22 > 0:54:24£16,250 is where it comes in,
0:54:24 > 0:54:28but that counts all the auction costs and finance costs
0:54:28 > 0:54:31and everything within that, so that's absolutely everything.
0:54:31 > 0:54:34Originally, the plan was to renovate and then sell -
0:54:34 > 0:54:36is that still the case?
0:54:36 > 0:54:40We're going to rent this out - keep it.
0:54:40 > 0:54:42Erm, I think it'll be a great little rental income,
0:54:42 > 0:54:46and actually, with the shops, you get... The return is amazing.
0:54:46 > 0:54:48That's the right answer, Anthony,
0:54:48 > 0:54:51cos it doesn't half simplify the valuations.
0:54:51 > 0:54:54We're dealing with two existing rentals on the shops,
0:54:54 > 0:54:57and an unknown rental on the flat, but before that -
0:54:57 > 0:55:00what's been the best thing about the refurbishment?
0:55:00 > 0:55:02I think just seeing the thing come together.
0:55:02 > 0:55:05You have an idea that it's going to be nice, working on it,
0:55:05 > 0:55:07but actually, when you see the kitchen and bathroom,
0:55:07 > 0:55:09which are the ones that are the big transformations...
0:55:09 > 0:55:11And everyone who just pops in and sees it
0:55:11 > 0:55:15seems to be very pleased with it, so let's see what the agents say.
0:55:15 > 0:55:18Indeed, with Anthony's permission,
0:55:18 > 0:55:20we called in two local estate agents
0:55:20 > 0:55:23to get their opinions on the work and their valuations.
0:55:23 > 0:55:26Anthony's already offered the freehold on the next-door
0:55:26 > 0:55:30properties to the sitting tenants, so we'll keep that separate.
0:55:30 > 0:55:33It's my second visit to the property,
0:55:33 > 0:55:37and obviously it's changed a fair bit since I was last here.
0:55:37 > 0:55:40The most noticeable thing being that you can see straightaway
0:55:40 > 0:55:42that it's been decorated now,
0:55:42 > 0:55:44and it's got a new kitchen and bathroom,
0:55:44 > 0:55:46erm, so it's much improved.
0:55:46 > 0:55:49I feel the property's been finished to a very good standard,
0:55:49 > 0:55:51which would work well for sales and rentals.
0:55:51 > 0:55:53Somebody looking to increase their portfolio,
0:55:53 > 0:55:55to purchase the property for a new buy-to-let property,
0:55:55 > 0:55:57would be absolutely perfect.
0:55:57 > 0:56:00Anthony paid £255,000 at auction,
0:56:00 > 0:56:05and he spent £16,250 refurbishing.
0:56:05 > 0:56:07Ignoring the fact that he's been getting a rental income
0:56:07 > 0:56:14from the shops, his total costs are £271,250,
0:56:14 > 0:56:16so what would the flat rent out for?
0:56:16 > 0:56:18I feel, the flat, in today's market,
0:56:18 > 0:56:23would achieve somewhere between £695 and £725 per calendar month.
0:56:23 > 0:56:27I'm thinking that, for the flat which we're in now,
0:56:27 > 0:56:29the rental which could be achieved -
0:56:29 > 0:56:32it would be about £725 per calendar month.
0:56:33 > 0:56:37Taking the higher figure, that's £8,700 per annum,
0:56:37 > 0:56:41added to the £10,000 per annum rent from each of the two shops,
0:56:41 > 0:56:46gives a yield on Anthony's investment of just over 10.5%.
0:56:48 > 0:56:51Yeah, I might have thought a little bit more than that,
0:56:51 > 0:56:57but they're the experts, so, sort of, £725, we would take.
0:56:57 > 0:57:00The agents went on to value the sale of the shops and the flat
0:57:00 > 0:57:03at a top figure of £400,000,
0:57:03 > 0:57:07which would give Anthony a total potential profit, before taxes,
0:57:07 > 0:57:11of just short of £129,000.
0:57:11 > 0:57:13Well, obviously, I mean, that's...
0:57:13 > 0:57:16400 is...would be fantastic,
0:57:16 > 0:57:18given that I paid 255 for it, so...
0:57:18 > 0:57:21Erm, then, then, lovely.
0:57:21 > 0:57:24Erm, you've still got to get it, haven't you?
0:57:24 > 0:57:25Pragmatic to the end,
0:57:25 > 0:57:29and Anthony's learnt a thing or two from his professional builder.
0:57:29 > 0:57:31When we took the bathroom tiles off, for instance,
0:57:31 > 0:57:33I was there with my flat chisel and a hammer,
0:57:33 > 0:57:36and the chap had just moved in with what looked like some, like,
0:57:36 > 0:57:39pneumatic drill, and he took every tile off in about ten minutes.
0:57:39 > 0:57:42I'd earmarked the day for taking the tiles off, and he just went...
0:57:42 > 0:57:44Dug-a-dug-a-dug-a-dug-a!
0:57:44 > 0:57:45..and they were all gone,
0:57:45 > 0:57:48and, of course, that's not something that you see on the normal,
0:57:48 > 0:57:51sort of, DIY programmes, and it made such a difference.
0:57:51 > 0:57:53I've got a feeling that Anthony will be using that
0:57:53 > 0:57:55on his next renovation.
0:57:58 > 0:58:02I hope those buyers and their stories have inspired you.
0:58:02 > 0:58:04Are you packing up and heading off to the auction right now?
0:58:04 > 0:58:06Or maybe just staying at home?
0:58:06 > 0:58:08No worry, either way, because we'll be back with more
0:58:08 > 0:58:11stories from the auctions here on Homes Under The Hammer.
0:58:11 > 0:58:13- Goodbye.- Bye-bye.- Goodbye.