0:00:02 > 0:00:05Hello and welcome to the programme. Martin and I absolutely love property,
0:00:05 > 0:00:08but, as you know, they all come with their own unique set of challenges.
0:00:08 > 0:00:11They do, but despite the different markets across the country,
0:00:11 > 0:00:14buying at auction is still hugely popular,
0:00:14 > 0:00:17with thousands of people buying lots every month.
0:00:17 > 0:00:20Oh, absolutely! And because we've been so busy,
0:00:20 > 0:00:22to help us keep up with the challenges is somebody who
0:00:22 > 0:00:25loves property nearly as much as we do, Dion Dublin.
0:00:25 > 0:00:27- Hello.- Thanks, Lucy, Martin.
0:00:27 > 0:00:30My love of property goes alongside my love of football, as well.
0:00:30 > 0:00:32But I'm looking forward to seeing how people get on here
0:00:32 > 0:00:34on Homes Under The Hammer.
0:01:00 > 0:01:03Now, we know that buying property is not always a straightforward job,
0:01:03 > 0:01:05but a good starting point is to do your research
0:01:05 > 0:01:07and buy at the right price.
0:01:07 > 0:01:09And a property auction is a great place to look.
0:01:09 > 0:01:12Yeah, let's see what today's bidders decided to buy.
0:01:14 > 0:01:18In Wales, we find a laid-back approach to renovation work.
0:01:18 > 0:01:24Probably come up here the odd weekend with my wife and two children.
0:01:24 > 0:01:27Whereas it's slightly more swift in Staffordshire.
0:01:27 > 0:01:30In six months' time, I'll be very disappointed
0:01:30 > 0:01:32if it isn't finished and rented out.
0:01:34 > 0:01:38But that's nothing compared to the scramble to sell in Streatham.
0:01:38 > 0:01:43- She wants to put an open day three days from now.- What?!
0:01:43 > 0:01:46All these properties have been sold at auction.
0:01:46 > 0:01:49We'll find out who bought them and what they paid for them
0:01:49 > 0:01:52when they went under the hammer.
0:01:52 > 0:01:54Yours, sir, well done.
0:01:56 > 0:02:00This is Aberaman, a village in Glamorgan,
0:02:00 > 0:02:03situated 20 miles north of Cardiff,
0:02:03 > 0:02:07and this now-quiet residential village was once a hive of industry.
0:02:07 > 0:02:10# My days were filled with blue skies
0:02:10 > 0:02:14# And the evenings drifted slowly and so kind
0:02:17 > 0:02:21# I was dreaming about the days I'd left behind... #
0:02:23 > 0:02:26Well, like many parts of South Wales,
0:02:26 > 0:02:31this area's history is closely linked with the coalmining industry.
0:02:31 > 0:02:34Well, the pits have long closed,
0:02:34 > 0:02:38but a legacy of coal miners' cottages has been left.
0:02:38 > 0:02:40And that's exactly what I'm here to see.
0:02:40 > 0:02:43£35,000-plus was the guide price for this,
0:02:43 > 0:02:46a two-bedroomed mid-terrace cottage.
0:02:48 > 0:02:52Newish front door, double glazing and a roof in good order.
0:02:52 > 0:02:56From the outside, it's all looking really rather promising.
0:02:56 > 0:02:58So, pretty standard layout.
0:02:58 > 0:03:00Entrance hall here, stairs up to your bedrooms
0:03:00 > 0:03:03and then into your lounge. It's got a really nice feel to it,
0:03:03 > 0:03:07lots of light pouring in through the windows, it's got a dual aspect.
0:03:07 > 0:03:10Still got doors on that, to separate out each room.
0:03:10 > 0:03:15You may want to increase the size of that gap, perhaps, make it even more
0:03:15 > 0:03:19open plan, but it certainly does give the cottage a nice, open feel.
0:03:19 > 0:03:21Definitely need to get the fireplace checked out,
0:03:21 > 0:03:23but then, typical design.
0:03:23 > 0:03:26Through here is the back of the property, where you've
0:03:26 > 0:03:29got your kitchen and, well, you know, it's pretty serviceable.
0:03:29 > 0:03:32You could live with this, I think. If you're going to live in it,
0:03:32 > 0:03:35I think you'd want to spend a bit of money doing it up.
0:03:35 > 0:03:38Certainly a bit of time and effort, whatever you are going to do with
0:03:38 > 0:03:41the property - rent it or sell it on, or whatever -
0:03:41 > 0:03:44would be well spent. But at least you've got the space to play with.
0:03:46 > 0:03:49# Play with me... #
0:03:49 > 0:03:51Not bad, not bad at all.
0:03:51 > 0:03:55Along with the perfectly serviceable kitchen, expensive things -
0:03:55 > 0:03:59such as central heating and double glazing - are already installed.
0:03:59 > 0:04:03And with what was a £35,000-plus guide price, I think
0:04:03 > 0:04:06you could afford to have a bit of fun bringing this up to date
0:04:06 > 0:04:10and making it quite impressive. How about a wood-burning stove?
0:04:10 > 0:04:13Maybe some modern doors? Contemporary lighting?
0:04:13 > 0:04:17Solid-wood floors? Who knows? Let that imagination run wild.
0:04:17 > 0:04:21# Play with me... #
0:04:25 > 0:04:31So, upstairs, and good news and bad news. The bad news first. The floor.
0:04:32 > 0:04:37Just on the landing here, it is very, very, well...
0:04:37 > 0:04:42What is the word? Wonky. That'll do. Yes. Angled that way.
0:04:42 > 0:04:45It's probably historic subsidence.
0:04:45 > 0:04:49A lot of that went on in these kind of properties. That's the bad news.
0:04:49 > 0:04:51The great news is, look. Upstairs, here,
0:04:51 > 0:04:53you wouldn't have expected this.
0:04:53 > 0:04:57You've got a bathroom and a separate loo. An odd bit of space.
0:04:57 > 0:05:00I wonder if, at some stage, this was actually a bedroom
0:05:00 > 0:05:03and somebody's actually converted it into this. I don't know.
0:05:03 > 0:05:06Whatever, it's great that the bathroom and loo are up here.
0:05:06 > 0:05:09You would have expected it downstairs, so a real, real bonus.
0:05:09 > 0:05:13I don't think the upstairs layout makes good use of the space,
0:05:13 > 0:05:16but you could knock through the wall from the toilet to create
0:05:16 > 0:05:18a rather spacious bathroom.
0:05:19 > 0:05:23You could possibly even incorporate this bit of the corridor
0:05:23 > 0:05:25if you really wanted to push the boat out.
0:05:25 > 0:05:28# Play with me... #
0:05:28 > 0:05:31The two bedrooms, however, are great, with the master bedroom being
0:05:31 > 0:05:37really sizeable, and the two large windows make it airy and bright.
0:05:37 > 0:05:39So, after a general refurbishment,
0:05:39 > 0:05:43the property should be ready for rental or resale.
0:05:43 > 0:05:46But there is one issue that might not be to everyone's liking.
0:05:48 > 0:05:49Well, the house is located
0:05:49 > 0:05:52right on the edge of this reasonably busy road.
0:05:52 > 0:05:56There's nothing unusual about that, necessarily,
0:05:56 > 0:05:59but something you don't see a lot of is a house which is situated
0:05:59 > 0:06:02literally on a bend in the road.
0:06:02 > 0:06:04Why is that an issue as far as I'm concerned?
0:06:04 > 0:06:06Well, you get cars coming down like this.
0:06:06 > 0:06:09During the day, it's OK, but at night, with headlights on,
0:06:09 > 0:06:13their headlights will be shining straight into your lounge.
0:06:13 > 0:06:16So, it's a classic case of making sure you visit
0:06:16 > 0:06:19a property at different times of the day to make sure you've
0:06:19 > 0:06:23assessed all the pros and cons.
0:06:23 > 0:06:24This is a con.
0:06:26 > 0:06:28Sorry to throw in that curveball,
0:06:28 > 0:06:30but this could put some potential buyers off.
0:06:30 > 0:06:34As could the rather steep incline the house is on, too.
0:06:34 > 0:06:38# There's a place up ahead and I'm going
0:06:38 > 0:06:42# Just as fast as my feet can fly
0:06:42 > 0:06:46# Come on the rising wind
0:06:46 > 0:06:49# We're going up around the bend.... #
0:06:52 > 0:06:55The plus is that one would hope cars would slow down to
0:06:55 > 0:06:59go around the corner, so you won't have them racing past.
0:06:59 > 0:07:02But parking near the property is also going to be an issue.
0:07:04 > 0:07:07At least there's potentially some good outside space
0:07:07 > 0:07:11at the rear of the property, once it's all been hacked back.
0:07:11 > 0:07:13And it's surprisingly flat
0:07:13 > 0:07:16and level, with quite impressive hillside views.
0:07:20 > 0:07:22So, the cottage isn't without its merits,
0:07:22 > 0:07:25but what can a local estate agent tell us?
0:07:27 > 0:07:30It's a slightly quirky property, I think one would say.
0:07:30 > 0:07:33It's a property that does need some considerable modernising to
0:07:33 > 0:07:35bring it up to current standards.
0:07:35 > 0:07:39There are certainly some sort of unusual angles in this house, and
0:07:39 > 0:07:42you do feel that your equilibrium is a little off at certain angles.
0:07:42 > 0:07:44It's probably historic,
0:07:44 > 0:07:46but any purchaser here should investigate that thoroughly
0:07:46 > 0:07:49by getting somebody in from a surveying background
0:07:49 > 0:07:51to look at it with some serious detail.
0:07:51 > 0:07:55Yes, structural movement is best looked at by the professionals,
0:07:55 > 0:07:59but are there any changes to the layout that could improve it?
0:07:59 > 0:08:01There is potential with these properties to split
0:08:01 > 0:08:03the front bedroom, because it's a large bedroom.
0:08:03 > 0:08:06The only issue with that is that you do end up with three smaller
0:08:06 > 0:08:10bedrooms, and sometimes it's not that beneficial in doing that.
0:08:10 > 0:08:12Yes, sometimes less is more.
0:08:12 > 0:08:15But can you build any value into a property that was
0:08:15 > 0:08:17guided at £35,000-plus?
0:08:19 > 0:08:23If the property was fully modernised throughout and brought up to
0:08:23 > 0:08:28a good modern standard, a potential sales value of up to £60,000.
0:08:28 > 0:08:32Well, that's encouraging. And how would it fair on the rental market?
0:08:32 > 0:08:35If the property was brought up to a modern standard, I would
0:08:35 > 0:08:38imagine a rental value in the region of £400 per calendar month.
0:08:41 > 0:08:43Well, it's a nice enough little property.
0:08:43 > 0:08:47The location on this S-bend might be a bit of an issue for some,
0:08:47 > 0:08:49but apart from that, for that guide price,
0:08:49 > 0:08:51I don't think you can go far wrong.
0:08:51 > 0:08:54Let's see who agreed when it went under the hammer.
0:08:58 > 0:09:00Brings us nicely then onto lot 31,
0:09:00 > 0:09:04which is a house we've suggested may be suitable for owner occupation,
0:09:04 > 0:09:07or investment. Can we see 30 to start?
0:09:07 > 0:09:0930? Make it 25, if you like.
0:09:09 > 0:09:11Thank you, 25 I've got. At 25.
0:09:11 > 0:09:13And six can I see? 26.
0:09:13 > 0:09:1527? 27.
0:09:15 > 0:09:1628, 29?
0:09:16 > 0:09:1929, no. At 28, 29 now somebody.
0:09:19 > 0:09:2129, thank you. And 30?
0:09:21 > 0:09:2330, 31.
0:09:23 > 0:09:2532, 33?
0:09:25 > 0:09:31So this lot was proving popular and we rejoin the bidding at £42,000.
0:09:31 > 0:09:3542. And a half.
0:09:35 > 0:09:3943. 43 and a half.
0:09:39 > 0:09:4244. 44 and a half.
0:09:42 > 0:09:4445?
0:09:45 > 0:09:46And a half?
0:09:46 > 0:09:4745 and a half, no.
0:09:47 > 0:09:52At £45,000 with you, then, for the first time...
0:09:52 > 0:09:54second time, third and last time...
0:09:54 > 0:09:56- GAVEL FALLS - Yours, sir, well done.
0:09:56 > 0:09:59And so the hammer fell at £45,000.
0:09:59 > 0:10:02And the successful bidder for the two-bed terraced house
0:10:02 > 0:10:05in Aberaman is Joleon.
0:10:07 > 0:10:09Joleon and his family live in Gloucester
0:10:09 > 0:10:12and he joined me back at the cottage with his eldest daughter,
0:10:12 > 0:10:1411-year-old Yasmin.
0:10:16 > 0:10:18- Joleon, good to meet you.- And you.
0:10:18 > 0:10:22Congratulations! Tell me why you wanted to buy this place.
0:10:22 > 0:10:25Basically as a bit of a project, a part-time project.
0:10:25 > 0:10:28Quite often, in the winter, I get a little bit quiet, work wise.
0:10:28 > 0:10:31I thought it would be a perfect little place to come and hide!
0:10:31 > 0:10:34- Definitely. What's your work? - I'm a decorator.- OK.
0:10:34 > 0:10:36- That's convenient, then.- Yeah.
0:10:36 > 0:10:38Have you done anything like this before?
0:10:38 > 0:10:40Yeah, numerous projects.
0:10:40 > 0:10:42I've done a few extensions on previous houses
0:10:42 > 0:10:45- and most recently we bought a plot of land at auction.- Oh, wow!
0:10:45 > 0:10:46- And did a self build.- How was that?
0:10:46 > 0:10:49It was absolutely brilliant, the best thing I've ever done.
0:10:49 > 0:10:52- Did it turn out how you hoped? - Yeah, exactly.
0:10:52 > 0:10:54When you build it yourself, you can put it in the right
0:10:54 > 0:10:58angle to the sun, the kids get to choose the size of their bedrooms.
0:10:58 > 0:11:00It was great.
0:11:00 > 0:11:03This is to be Joleon's first property renovation
0:11:03 > 0:11:06and he hopes to rent it out on completion.
0:11:06 > 0:11:09After doing a new build, this place should be a relative doddle.
0:11:09 > 0:11:12What are the main issues, then, and how are you going to deal with them?
0:11:12 > 0:11:15Upstairs, the shower that's up there is going to be coming out
0:11:15 > 0:11:17- and put a bath in.- OK.
0:11:17 > 0:11:20I was thinking possibly about putting a third bedroom upstairs.
0:11:20 > 0:11:22- Where?- In the main bedroom.
0:11:22 > 0:11:24I got my tape measure out today
0:11:24 > 0:11:26and I think it could be a bit of a squeeze to put a third
0:11:26 > 0:11:29bedroom in so, possibly, that is going to stay as it is and,
0:11:29 > 0:11:33obviously, major decoration all round, new doors.
0:11:33 > 0:11:35What about the sloping floors upstairs?
0:11:35 > 0:11:38To be honest, I think it's been like that since the year dot
0:11:38 > 0:11:41and I've jumped up and down up there and it's just a quirky cottage.
0:11:41 > 0:11:44- Nothing to worry about?- No, no.- What's the budget?
0:11:44 > 0:11:49- I'm sort of thinking 5,000, give or take.- Mm-hm, right.
0:11:49 > 0:11:52- What work will you be doing? - Basically all of it.
0:11:52 > 0:11:55In between doing your work?
0:11:55 > 0:11:57I mean, this is going to be a part-time project
0:11:57 > 0:11:58when I'm a bit quiet, work wise.
0:11:58 > 0:12:01I'll probably come up here the odd weekend with my wife
0:12:01 > 0:12:04- and my two children and they'll muck in.- Right.
0:12:04 > 0:12:07- I usually make the mess and they help clean up!- OK!
0:12:07 > 0:12:11Yasmin absolutely loves getting involved and telling me,
0:12:11 > 0:12:13"I think you should do that, Dad. Maybe how about do this?"
0:12:13 > 0:12:17- It's great, isn't it?- She's bossing you around?- Of course she does.
0:12:18 > 0:12:21I think it's high time we speak to the boss, 11-year-old Yasmin,
0:12:21 > 0:12:25and find out exactly what is planned for the house.
0:12:25 > 0:12:27Tell me about this house, what do you think about it?
0:12:27 > 0:12:32It's got a lot of things to do and there needs a lot of painting
0:12:32 > 0:12:37- and more work.- What are you going to do, do you think?
0:12:37 > 0:12:40Designing and decorating the property.
0:12:40 > 0:12:44Your dad says that he makes a mess and you tell him what to do
0:12:44 > 0:12:47- and you tidy up after him. Is that right?- Yeah.
0:12:47 > 0:12:51- Is it something you might like to do when you're a bit older?- Yeah.
0:12:51 > 0:12:53What do you think you might be, then?
0:12:53 > 0:12:59I want to be like my dad and doing a lot of things like that.
0:12:59 > 0:13:02# Daddy...Daddy Cool
0:13:02 > 0:13:06# Daddy...Daddy Cool... #
0:13:07 > 0:13:10With help from Yasmin and the rest of the family,
0:13:10 > 0:13:14Joleon is hoping to complete the work in five to six months.
0:13:14 > 0:13:17- So after this, then, more projects? - Yeah, definitely.
0:13:17 > 0:13:22- See how this goes and just see what happens.- Great, congratulations.
0:13:22 > 0:13:24- Thank you very much.- Good luck. - Thank you very much.
0:13:24 > 0:13:27- I look forward to seeing how you get on.- Cheers. Thanks.
0:13:27 > 0:13:30Well, I think Joleon has chosen well with this property
0:13:30 > 0:13:34and certainly has the skills to get it sorted after
0:13:34 > 0:13:38building his own home and, with Yasmin keeping him on track,
0:13:38 > 0:13:40it should be a successful renovation.
0:13:40 > 0:13:43You can find out how it all goes later in the show.
0:13:48 > 0:13:51I'm off now to another area where coal previously played a big
0:13:51 > 0:13:53part in the local industry.
0:13:53 > 0:13:57Longton is the southern most of six towns that make up
0:13:57 > 0:14:02Stoke-on-Trent which, in the 19th century, was at the epicentre of fine
0:14:02 > 0:14:06ceramic tableware production, giving the area its Potteries moniker.
0:14:10 > 0:14:13But long before dinner plates, coal was the main product.
0:14:13 > 0:14:16A quarter of a mile away from Longton and its amenities
0:14:16 > 0:14:19is the former colliery village of Adderley Green.
0:14:19 > 0:14:24The property I'm here to see today is a three-bed semidetached
0:14:24 > 0:14:27with a guide price of £55,000 plus.
0:14:27 > 0:14:29Here it is.
0:14:29 > 0:14:33My first impressions are, a little bit untidy, but I've noticed
0:14:33 > 0:14:36the off-street parking, which is a massive, massive plus.
0:14:36 > 0:14:38A tidy-up here would add value, too.
0:14:38 > 0:14:44More ominously, years of frost damage has taken its toll on the clay tiles.
0:14:44 > 0:14:48There's only one remedy, like many of the neighbouring houses, reroofing.
0:14:52 > 0:14:55Now, the first thing that hits you is the smell of pets.
0:14:55 > 0:14:56It's got to be dogs.
0:14:56 > 0:15:00I recognise the smell, I've had two dogs myself, and just judging by
0:15:00 > 0:15:02the hair on this carpet that I can see on the stairs,
0:15:02 > 0:15:04it's definitely dogs.
0:15:04 > 0:15:06I'm coming in here to this lovely big living room.
0:15:06 > 0:15:09I'll watch my head on this low lampshade
0:15:09 > 0:15:11but this is the problem - not so much the height,
0:15:11 > 0:15:13it's this electrics would need to be sorted out.
0:15:13 > 0:15:16I like this room, it's not too bad. Let's have a snoop about.
0:15:16 > 0:15:18OK, kitchen through here.
0:15:18 > 0:15:21Nice, big space. Just seems to need a bit of a refit.
0:15:21 > 0:15:24Dining room, I would have imagined would've been in here
0:15:24 > 0:15:26but, for me, knock this wall through,
0:15:26 > 0:15:30gives you a lovely big kitchen/dining room overlooking the garden but
0:15:30 > 0:15:34I think my first impressions were dogs and I think that puts me right.
0:15:34 > 0:15:37Down here, we've got a little bit of plaster damage,
0:15:37 > 0:15:40a bit more dog damage down here and, as I look around the room,
0:15:40 > 0:15:43more there. There's a bit of work in here that needs to be done.
0:15:43 > 0:15:44# Who let the dogs out? #
0:15:44 > 0:15:46By the looks of it, nobody.
0:15:46 > 0:15:48# Who let the dogs out? #
0:15:48 > 0:15:50These canines have expensive tastes.
0:15:50 > 0:15:52# Who let the dogs out? #
0:15:52 > 0:15:54Man's best friend? Hmm.
0:15:54 > 0:15:56# Who let the dogs out? #
0:15:56 > 0:16:00It looks like dogs weren't the only problem living in this house.
0:16:01 > 0:16:04I wouldn't want to eat in this dining room any time soon.
0:16:07 > 0:16:11The kitchen, as I mentioned, needs more of a standard refurbishment
0:16:11 > 0:16:15but there's a lot of problems to see through before any potential buyer
0:16:15 > 0:16:17could warm to this place.
0:16:17 > 0:16:21And to say the plumbing is decrepit would be an understatement.
0:16:24 > 0:16:27On the plus side, the lounge is spacious and bright,
0:16:27 > 0:16:29thanks to a fantastic bay window.
0:16:29 > 0:16:35Sadly, though, the pooches have put their stamp on the woodwork here.
0:16:35 > 0:16:40It looks like upstairs hasn't escaped those munching canines either.
0:16:40 > 0:16:42OK, what I can see here is the banister.
0:16:42 > 0:16:47Two spindles are missing, a bit more dog damage, a bit rickety.
0:16:47 > 0:16:49Replace this, it's not safe.
0:16:49 > 0:16:52Master bedroom there, the biggest of the three.
0:16:52 > 0:16:55Middle bedroom there, children's bedroom there.
0:16:55 > 0:16:57I'm guessing it's children's, it's pink.
0:16:57 > 0:16:59Erm, and the bathroom there.
0:16:59 > 0:17:02A bit of TLC, a bit of a clean. It seems OK.
0:17:03 > 0:17:07I think this bathroom could be revised with a bit of elbow grease
0:17:07 > 0:17:10and some good cleaning materials.
0:17:11 > 0:17:14Summing up the upstairs, bedroom one is a decent size,
0:17:14 > 0:17:17although the dodgy plumbing comes through here.
0:17:18 > 0:17:20The black wardrobes dominate bedroom two,
0:17:20 > 0:17:23and the boxroom would fit a child's bed fine.
0:17:25 > 0:17:27What about outside?
0:17:27 > 0:17:30It's a nice space. It needs a bit of tending to.
0:17:30 > 0:17:34Behind that wall there, a little bit of patio, potentially barbecue area.
0:17:34 > 0:17:38Inside, a bit of TLC, a bit of money spent on it.
0:17:38 > 0:17:41This is a lovely family home in the making.
0:17:41 > 0:17:45And at the bottom of the garden? A seasonal bonus.
0:17:45 > 0:17:46# I'm brought back like a flip
0:17:46 > 0:17:50# When it's blackberry-picking time... #
0:17:50 > 0:17:53We asked an estate agent who knows the local market
0:17:53 > 0:17:55along to give us her opinions on the property
0:17:55 > 0:17:58and some all-important valuations.
0:17:58 > 0:18:00First impressions of the property - there is
0:18:00 > 0:18:02obviously quite a lot of work to be done
0:18:02 > 0:18:05but for the area, as a standard three-bedroom semidetached,
0:18:05 > 0:18:09it's got a lot of outside space, great for buy-to-let investors
0:18:09 > 0:18:10looking to appeal to families.
0:18:10 > 0:18:13I'd probably recommend to knock the kitchen/diner through
0:18:13 > 0:18:16so you've got quite a large open-plan living space, because it's
0:18:16 > 0:18:19more suitable now to modern living, with people with small children.
0:18:19 > 0:18:21So we agree on that, then.
0:18:21 > 0:18:24Given a guide price of £55,000 plus,
0:18:24 > 0:18:28is there likely to be a profit on this investment?
0:18:28 > 0:18:31I estimate it will cost somewhere in the region of £10,000 to £15,000
0:18:31 > 0:18:33to fully refurbished the property but, of course,
0:18:33 > 0:18:36along the way you might uncover some nasty little problems.
0:18:36 > 0:18:39I wonder if she's included the electrics in that.
0:18:39 > 0:18:43If she has, it would take the total investment to £70,000,
0:18:43 > 0:18:46assuming there are no nasty problems.
0:18:46 > 0:18:48What would its market value be then?
0:18:48 > 0:18:51Once fully refurbished, I'd anticipate this property
0:18:51 > 0:18:54would achieve somewhere in the region of £75,000 to £80,000
0:18:54 > 0:18:56on the sale market, and somewhere in the region
0:18:56 > 0:18:59of £450 per calendar month on the rental market.
0:19:01 > 0:19:03So you've got a nice family home.
0:19:03 > 0:19:06A little bit of money does need spending on it but, potentially,
0:19:06 > 0:19:10if you get your budget right, this could be a nice little investment.
0:19:10 > 0:19:12Let's see who wanted it when it went under the hammer.
0:19:12 > 0:19:14Lot 23, Adderley Green in Stoke.
0:19:14 > 0:19:16It's a three-bedroomed semi.
0:19:16 > 0:19:19There's gas central heating, double glazing, off-street parking
0:19:19 > 0:19:21and a large garden.
0:19:21 > 0:19:2355 is the guide, can I say 50 to start?
0:19:25 > 0:19:28- 45.- 45, then. 45 is bid.
0:19:28 > 0:19:29At £45,000, seated.
0:19:29 > 0:19:3246, 47?
0:19:32 > 0:19:36Accepting a lower bid to start, the auctioneer goes in £1,000 steps
0:19:36 > 0:19:40up to the guide price of £55,000, where we rejoin the bidding.
0:19:40 > 0:19:4355, 56,
0:19:43 > 0:19:4457, 58?
0:19:46 > 0:19:48Saying 57,500. 58.
0:19:48 > 0:19:50And a half?
0:19:50 > 0:19:55At £58,000, gentleman's bid seated, no mistake against you, standing.
0:19:55 > 0:19:57At £58,000 - are we all done?
0:19:57 > 0:20:00£58,000 then once...
0:20:00 > 0:20:02£58,000 twice...
0:20:02 > 0:20:04Third and last time, £58,000...
0:20:04 > 0:20:05GAVEL FALLS
0:20:05 > 0:20:07You bought it, sir. Well done.
0:20:07 > 0:20:11The successful bidder in from the first bid to the last is Kevin,
0:20:11 > 0:20:14who works in digital marketing.
0:20:14 > 0:20:19I met him minus his moustache back at his £58,000 purchase.
0:20:19 > 0:20:22Kevin, nice to meet you and congratulations, well done.
0:20:22 > 0:20:24Tell me what attracted you to this particular property?
0:20:24 > 0:20:26I just saw the potential, really.
0:20:26 > 0:20:30It's in need of decorative modernisation, as you can see,
0:20:30 > 0:20:34but beneath that there's a really solid family home here.
0:20:34 > 0:20:37Hopefully, with a little bit of work,
0:20:37 > 0:20:39we can bring that family home back.
0:20:39 > 0:20:42And your experience in property, how far does that go?
0:20:42 > 0:20:47A few years ago, I bought a very similar house and it hadn't been
0:20:47 > 0:20:52lived in for two years, hadn't been decorated for 20 years before that.
0:20:52 > 0:20:55I took it back to basics - full cosmetic restoration.
0:20:55 > 0:20:59It's rented out very successfully, I've got really good tenants
0:20:59 > 0:21:03in there, and so I thought about doing another one.
0:21:03 > 0:21:06And what do envisage you're going to do with this?
0:21:06 > 0:21:08Everything, really.
0:21:08 > 0:21:12The roof needs fixing. That's the first and most important thing.
0:21:12 > 0:21:15Apart from that, replaster all the walls and ceilings,
0:21:15 > 0:21:19new doors, new skirts, new architraves, new door frames.
0:21:19 > 0:21:21A new bathroom, a new kitchen.
0:21:21 > 0:21:26I've got a 15,000 budget and if I can really squeeze the budget,
0:21:26 > 0:21:29maybe do something with the front drive, as well.
0:21:29 > 0:21:32Kevin has a huge list of to-dos for that budget.
0:21:32 > 0:21:34It certainly seems quite tight
0:21:34 > 0:21:38so maybe I shouldn't mention my ideas on how to improve the house.
0:21:38 > 0:21:41The kitchen, I was potentially thinking, knock it through,
0:21:41 > 0:21:44one big kitchen/diner. Is that what you're thinking yourself?
0:21:44 > 0:21:47I had a thought about that and, yeah, a nice kitchen/diner
0:21:47 > 0:21:50would look good but I think a lot of people
0:21:50 > 0:21:54in this part of the world like the traditional separate dining room
0:21:54 > 0:21:58and with the expense of having to do the roof,
0:21:58 > 0:22:02I could do with saving the cost, because it is a supporting wall.
0:22:02 > 0:22:06Being a supporting wall does mean extra complications and extra expense.
0:22:07 > 0:22:10Kevin will need a structural engineer to calculate
0:22:10 > 0:22:13the size of the steel joist needed to take the weight,
0:22:13 > 0:22:16plus the cost of the steel, and I'd recommend getting
0:22:16 > 0:22:19a professional builder to carry out this type of work.
0:22:21 > 0:22:24OK, is it just you? Is this a sole project?
0:22:24 > 0:22:26I'll do as much of the work as I can
0:22:26 > 0:22:31because I value my labour cheaper than other tradesmen
0:22:31 > 0:22:36but where a finish is needed, then I will get plasterers to do the plastering.
0:22:36 > 0:22:39I'll get professionals to do all of the professional trades,
0:22:39 > 0:22:43but as much of the work that I can do - it saves on the budget.
0:22:43 > 0:22:46You mention costs. Have you got builders you've used before?
0:22:46 > 0:22:48I know number of tradesmen.
0:22:48 > 0:22:51- A friend of mine, Scott, is a plasterer.- OK.
0:22:51 > 0:22:53There is a lot of work for him here.
0:22:53 > 0:22:55I'll do the manual labour and he can
0:22:55 > 0:22:58do the bit which is the skilled bit with his trowel.
0:22:58 > 0:23:01What time have you given yourself to complete this one?
0:23:01 > 0:23:04Three to six months to do this one.
0:23:04 > 0:23:06I don't want too hard a timescale
0:23:06 > 0:23:08because you never know what turns up and some things you can do
0:23:08 > 0:23:11- quicker, and most things take a bit longer than you think.- OK.
0:23:11 > 0:23:14In six months' time I'll be very disappointed
0:23:14 > 0:23:17if it isn't finished and rented out and, hopefully, a bit sooner.
0:23:17 > 0:23:21And moving forward, Kevin, is this your last one or do you want to buy more?
0:23:21 > 0:23:23Let's see how things go.
0:23:23 > 0:23:27I'm not trying to build an empire in a year or two years.
0:23:27 > 0:23:30The other property is doing very well.
0:23:30 > 0:23:32This property, if it goes the same,
0:23:32 > 0:23:35then I probably will in the next year or two look to buy a third
0:23:35 > 0:23:38- and just see how it goes from there, really.- OK.
0:23:38 > 0:23:41Kev, good luck, I hope it goes the way you want it to go
0:23:41 > 0:23:44- and let's see how you get on. - Thank you.- Take care.
0:23:44 > 0:23:48So Kevin is slowly building up his property portfolio.
0:23:48 > 0:23:52The work he's found and come across doesn't seem to faze him at all
0:23:52 > 0:23:55but will the budget he set out bring this house up to scratch?
0:23:55 > 0:23:57Or will the house be left begging for more?
0:23:57 > 0:24:00You can find out later on in the programme.
0:24:00 > 0:24:05Coming up, I'm sensing good things in a house in south London.
0:24:05 > 0:24:07I always get a feeling instantly when I walk through a door
0:24:07 > 0:24:09and this feels like a very nice home.
0:24:10 > 0:24:15We return to Staffordshire to see if Kevin has any new career plans.
0:24:15 > 0:24:16I'll keep the day job.
0:24:16 > 0:24:20I think if you have too many properties, it'll turn into work.
0:24:23 > 0:24:27But first, we travelled 20 miles north of Cardiff to the small
0:24:27 > 0:24:29Welsh village of Aberaman
0:24:29 > 0:24:32and as it was here that we first came across this two-bed
0:24:32 > 0:24:35terraced cottage that, for the most part, was OK
0:24:35 > 0:24:39but it did have a few faults that might drive you round the bend.
0:24:41 > 0:24:45And it wasn't just the position, or the state, or the interior
0:24:45 > 0:24:47that was letting the property down.
0:24:47 > 0:24:50Erm, the floor.
0:24:50 > 0:24:53Just on the landing here it is very, very...
0:24:53 > 0:24:56Well, what's the word?
0:24:56 > 0:24:57Wonky, that'll do.
0:25:05 > 0:25:09But none of this put off painter and decorator Joleon
0:25:09 > 0:25:12from buying the house for £45,000 at auction.
0:25:12 > 0:25:14And together with some family help,
0:25:14 > 0:25:18he thought he had a good idea of what work was needed.
0:25:19 > 0:25:22I was thinking about putting a third bedroom upstairs.
0:25:22 > 0:25:25- Where?- In the main bedroom.
0:25:25 > 0:25:27I got my tape measure out today and I think it could be
0:25:27 > 0:25:30a bit of a squeeze to put a third bedroom in, so possibly that's
0:25:30 > 0:25:33going to stay as it is, and major decoration all round.
0:25:33 > 0:25:37- New doors...- So what about the sloping floors upstairs?
0:25:37 > 0:25:39To be honest, I think it's been like that since the year dot
0:25:39 > 0:25:43and I've jumped up and down and I just think it's a quirky cottage.
0:25:43 > 0:25:47So there are a few tasks to tackle.
0:25:47 > 0:25:49But having previously done a self build,
0:25:49 > 0:25:52surely this cottage renovation will be pretty straightforward.
0:25:52 > 0:25:54# A, B, C
0:25:54 > 0:25:56# Easy as one, two, three... #
0:25:56 > 0:26:01Joleon's given himself a £5,000 budget to do the refurbishment work
0:26:01 > 0:26:04and he was planning to fit it in around his decorating job.
0:26:07 > 0:26:10Now, five months later, we're back with Joleon
0:26:10 > 0:26:13and his eldest daughter Yasmin to see how they got on.
0:26:35 > 0:26:37The improvements I've made downstairs
0:26:37 > 0:26:41have been to open-plan the two rooms, put an RSJ up.
0:26:43 > 0:26:46Is not just been opened up, it's been replastered throughout
0:26:46 > 0:26:49and has new woodwork and doors.
0:26:52 > 0:26:54The improvements I've made to the kitchen was just to
0:26:54 > 0:26:56basically extend what I already had.
0:26:59 > 0:27:02Yes, that's all that was really needed here.
0:27:03 > 0:27:07Upstairs, put in a new wall, because it was a two-bedroom,
0:27:07 > 0:27:09to make it into a three-bedroomed.
0:27:09 > 0:27:12And so did he go for that third bedroom after all?
0:27:18 > 0:27:20We decided to keep the bathroom and toilet separately,
0:27:20 > 0:27:23purely because it just seemed to work fine.
0:27:24 > 0:27:27Yes, I think that's the right decision.
0:27:29 > 0:27:32And there was a change of plan for those wonky floorboards.
0:27:32 > 0:27:35Lifted all the floorboards up
0:27:35 > 0:27:38and we levelled the whole upstairs.
0:27:41 > 0:27:45It was quite at an angle, really, so we got it really nice and level.
0:27:45 > 0:27:48It's as level as a billiard table.
0:27:48 > 0:27:51So a couple of unexpected turnarounds here
0:27:51 > 0:27:54but he's put the whole house back on a level footing.
0:27:54 > 0:27:58I think changing this into a three-bed house is perhaps
0:27:58 > 0:28:00the most significant alteration.
0:28:05 > 0:28:08We thought we would go for a third bedroom,
0:28:08 > 0:28:13purely because the bedroom was just too big to be just one bedroom
0:28:13 > 0:28:15and it was calling out for a third bedroom.
0:28:15 > 0:28:18For the sake of putting a false wall up, it was quite easy.
0:28:18 > 0:28:21# Easy as one, two, three
0:28:21 > 0:28:23# As simple as do re mi
0:28:23 > 0:28:25# A, B, C
0:28:25 > 0:28:26# One, two, three... #
0:28:26 > 0:28:30Even though the third bedroom is really just a single,
0:28:30 > 0:28:35I think it probably was the right move, from an investment point of view.
0:28:35 > 0:28:38With the rear garden given a good tidy-up,
0:28:38 > 0:28:41it makes this now more appealing as a family home.
0:28:41 > 0:28:44Talking of family, how involved in this project was
0:28:44 > 0:28:46Joleon's daughter, Yasmin?
0:28:46 > 0:28:49It wasn't just Yasmin, it was the whole family.
0:28:49 > 0:28:50We all made a nice weekend of it.
0:28:50 > 0:28:53And we came up here and we even brought the dog Jasper,
0:28:53 > 0:28:56our new puppy, he came up and he had a bit of fun outside,
0:28:56 > 0:28:59and it was great, yeah, we just all mucked in.
0:28:59 > 0:29:02Ah! But what refurbishment jobs
0:29:02 > 0:29:05did 11-year-old Yasmin enjoy doing most?
0:29:05 > 0:29:07I liked painting the doors...
0:29:08 > 0:29:10..and grouting the tiles,
0:29:10 > 0:29:12and learning new things about...
0:29:12 > 0:29:18all the designing and... renovating properties.
0:29:22 > 0:29:25I want to do something like this again when...
0:29:25 > 0:29:26Especially when I'm older.
0:29:26 > 0:29:30A budding property developer in the making, to be sure,
0:29:30 > 0:29:35but has all this family support helped keep the costs down?
0:29:35 > 0:29:40We spent just under 6,000, so I was really chuffed at that.
0:29:40 > 0:29:44Um, you know. But, no, I said 5,000, give or take, and it was slightly...
0:29:44 > 0:29:45But that was fine.
0:29:47 > 0:29:52A £6,000 spend on top of Joleon's £45,000 purchase price
0:29:52 > 0:29:54takes his total spend to £51,000.
0:29:54 > 0:29:58To me, that sounds like good value for money.
0:29:58 > 0:30:00But what do two local estate agents think?
0:30:00 > 0:30:03First, the agent who saw it previously.
0:30:05 > 0:30:10The current owners appear to have a successful renovation here
0:30:10 > 0:30:14since our first trip. It's now a very neutral property,
0:30:14 > 0:30:17aligning it very well with both the sales and the rental market.
0:30:17 > 0:30:19I think the property has been modernised throughout
0:30:19 > 0:30:21to a good standard.
0:30:21 > 0:30:23The owner has used neutral colours,
0:30:23 > 0:30:25making it very bright and airy.
0:30:25 > 0:30:28It was definitely beneficial creating the third bedroom here
0:30:28 > 0:30:31for the sake of putting up a stud wall here
0:30:31 > 0:30:33and creating that extra room.
0:30:33 > 0:30:36It will increase the value for both the sales and the rental market.
0:30:36 > 0:30:41So far, Joleon has invested £51,000 into this now three-bed property.
0:30:41 > 0:30:43He had planned to rent out the house,
0:30:43 > 0:30:46but now he's thinking of selling on.
0:30:46 > 0:30:50Maybe the numbers will help him make up his mind.
0:30:50 > 0:30:52Now that it's a three-bed dwelling,
0:30:52 > 0:30:55this property could achieve in the region of £70,000.
0:30:55 > 0:30:58I think the property could achieve £75,000,
0:30:58 > 0:31:01so I would recommend an asking price of £80,000.
0:31:01 > 0:31:03Yeah, I was expecting around about them figures,
0:31:03 > 0:31:07so they're sort of, like, spot-on to what I was hoping for. So, you know, great news.
0:31:07 > 0:31:10Well, that's a potential pre-tax profit of between
0:31:10 > 0:31:12£19,000 and £24,000,
0:31:12 > 0:31:15less the usual expenses, of course, so that's not bad.
0:31:15 > 0:31:17What about its rental potential?
0:31:19 > 0:31:22If they were to place this to the rental market,
0:31:22 > 0:31:26I would estimate a rental value of £450 per calendar month.
0:31:26 > 0:31:27For rental purposes,
0:31:27 > 0:31:31the property's likely to achieve £425 per calendar month.
0:31:31 > 0:31:35That's great. So, yeah, we've got something else to fall back on.
0:31:36 > 0:31:40And even the lower £425 per calendar month's rental return
0:31:40 > 0:31:43would see a healthy annual rental yield of 10%.
0:31:43 > 0:31:48So, has that helped Joleon decide what to do with this house?
0:31:49 > 0:31:52Yeah, I'll give it a go on the open market, see what happens.
0:31:52 > 0:31:54If it doesn't sell, then rent it out.
0:31:54 > 0:31:57Whichever road Joleon finally ends up taking with the property,
0:31:57 > 0:32:01it looks like it should be a financial success.
0:32:01 > 0:32:03So, what's next?
0:32:03 > 0:32:05Hopefully back to the auction, find another one
0:32:05 > 0:32:07and do it all over again. It's been really enjoyable.
0:32:11 > 0:32:14Well, Joleon may be back for more properties, and so am I,
0:32:14 > 0:32:17because Streatham in the London Borough of Lambeth
0:32:17 > 0:32:20is an area I visited frequently on Homes Under The Hammer.
0:32:20 > 0:32:22# You keep me coming back for more
0:32:22 > 0:32:25# I can't get enough of your love
0:32:25 > 0:32:29# You've got me coming back for more... #
0:32:29 > 0:32:30And that's no bad thing.
0:32:30 > 0:32:32I've seen it become increasingly popular,
0:32:32 > 0:32:34and although it's certainly not cheap,
0:32:34 > 0:32:38SW16 is more affordable than nearby Balham and Clapham,
0:32:38 > 0:32:42so people are moving here to get a little bit more for their money.
0:32:43 > 0:32:45# You keep me coming back for more... #
0:32:45 > 0:32:49So, what sort of property prices are we looking at
0:32:49 > 0:32:51along this residential road?
0:32:51 > 0:32:54Well, I'm here to see a three-bedroom mid-terrace.
0:32:54 > 0:32:58Now, it had a guide price of £250,000 plus.
0:32:58 > 0:33:02Sounds reasonable for this area, especially when I tell you
0:33:02 > 0:33:07three-beds along here sell for at least £350,000 -
0:33:07 > 0:33:09100 grand more!
0:33:09 > 0:33:13But this is an auction property, so what will it be like on the inside?
0:33:13 > 0:33:16- Nobody knows. - SHE CHUCKLES
0:33:17 > 0:33:21The outside, though, shows promise, with a decent roof
0:33:21 > 0:33:23and some space that, potentially,
0:33:23 > 0:33:26could be turned into off-road parking.
0:33:27 > 0:33:31Well, not bad at all on the inside. Yep, feels quite spacious.
0:33:31 > 0:33:34I always get a feeling instantly when I walk through a door
0:33:34 > 0:33:36and this feels like a very nice home.
0:33:36 > 0:33:39Not sure what that door does, not a lot by the looks of things!
0:33:39 > 0:33:42And a very disappointing small kitchen.
0:33:42 > 0:33:45Now, you can get around that and I've said this so many times
0:33:45 > 0:33:47that I know you know what I'm going to say now -
0:33:47 > 0:33:49you could knock through here!
0:33:49 > 0:33:51But you don't have to knock through here,
0:33:51 > 0:33:53but that is always an option to open the spaces up.
0:33:53 > 0:33:55This is a great space for a table.
0:33:55 > 0:33:58You've got a lovely big area over there for the TV, the sofa
0:33:58 > 0:34:02in the family room, and I really think it will work well.
0:34:03 > 0:34:06Yes, the space is great, it's just all a little bit shabby.
0:34:06 > 0:34:09It just needs a good deal of sprucing up.
0:34:09 > 0:34:11# All I need
0:34:11 > 0:34:15# All I don't... #
0:34:15 > 0:34:17And I don't think you'll need to spend much money here.
0:34:17 > 0:34:20The kitchen is one area where I'd concentrate all my efforts -
0:34:20 > 0:34:24it definitely needs the appliances and the flooring upgraded.
0:34:27 > 0:34:30Yes, and I'm not keen on that aluminium-framed back door,
0:34:30 > 0:34:32definitely something I'd change.
0:34:33 > 0:34:38Nope, on face value, this property doesn't need too much work,
0:34:38 > 0:34:43but one place you're going to have to spend is replacing these windows.
0:34:43 > 0:34:47Now... Ugh! I know you can see they're already double-glazed,
0:34:47 > 0:34:50but they're old, they're ugly, they're metal!
0:34:50 > 0:34:52And if this place is getting a face-lift,
0:34:52 > 0:34:55well, these windows - look - they need to be new too.
0:34:55 > 0:34:58That's not going to be cheap, but it will help the kerb appeal
0:34:58 > 0:35:00and the energy efficiency of the house,
0:35:00 > 0:35:03so I think it's certainly worth it in the long run.
0:35:03 > 0:35:06And after you've replaced those windows,
0:35:06 > 0:35:09well, the main focus should be just getting this place smartened up.
0:35:09 > 0:35:13The layout's fine, with the three bedrooms of varying size,
0:35:13 > 0:35:15but they're all just a little bit shabby.
0:35:15 > 0:35:19The bathroom disappoints, in that it's got no bath, just a shower,
0:35:19 > 0:35:22which, as a family home... Well, I don't think it's ideal.
0:35:22 > 0:35:26So I would consider finding a way to put a bath in.
0:35:26 > 0:35:29And there's another thing to consider with this house,
0:35:29 > 0:35:33guided at £250,000 plus.
0:35:33 > 0:35:35You might be aware
0:35:35 > 0:35:39that stamp duty regulations changed from 4 December 2014,
0:35:39 > 0:35:43which means that any property bought after this date
0:35:43 > 0:35:44adheres to the new rules.
0:35:44 > 0:35:48Familiarise yourself with these new stamp duty thresholds
0:35:48 > 0:35:52as it's almost certainly going to affect the price you pay.
0:35:52 > 0:35:55But in the meantime, I'm going to give you an example.
0:35:55 > 0:35:59Now, with this property, if you pay £250,000,
0:35:59 > 0:36:03then you would actually still pay exactly the same in stamp duty -
0:36:03 > 0:36:06£2,500.
0:36:06 > 0:36:10However, buy for a little more, say £275,000,
0:36:10 > 0:36:14and you pay £4,500 less than you would have done
0:36:14 > 0:36:15under the old system.
0:36:15 > 0:36:19Whether this works in your favour all depends on the purchase price,
0:36:19 > 0:36:23so make sure you do your homework and your sums.
0:36:29 > 0:36:32Ah, so will this house add up to be a good deal?
0:36:32 > 0:36:35What does a local estate agent think?
0:36:39 > 0:36:43In general, it's a great property. All the room sizes are very good.
0:36:43 > 0:36:46I would say that the bathroom doesn't have a bath,
0:36:46 > 0:36:48which maybe is a slight negative factor.
0:36:48 > 0:36:51I think definitely to pay some attention to the kitchen,
0:36:51 > 0:36:52and if a person really wanted to,
0:36:52 > 0:36:55they could build a nice rear extension.
0:36:55 > 0:36:57That will definitely add some value.
0:36:57 > 0:37:00Ah, yes, but extensions do take time and money.
0:37:00 > 0:37:03Are there any other improvements to the layout
0:37:03 > 0:37:06that could enhance the house without much building work?
0:37:06 > 0:37:08Without extending the kitchen,
0:37:08 > 0:37:10I think what a lot of people have done to these houses
0:37:10 > 0:37:12is knock the kitchen through to the second reception room
0:37:12 > 0:37:14or the dining room
0:37:14 > 0:37:16to make that a nice big open-plan kitchen/dining area,
0:37:16 > 0:37:19and a lot of people that are buying now are first-time buyers
0:37:19 > 0:37:22and also families who like that sort of flexible living accommodation.
0:37:22 > 0:37:24Ah, great minds think alike!
0:37:24 > 0:37:28But what with that £250,000 plus guide price,
0:37:28 > 0:37:31where does this stand from an investment point of view?
0:37:34 > 0:37:35Once renovated,
0:37:35 > 0:37:39this property would sell for approximately £410,000 to £420,000.
0:37:39 > 0:37:43If the owner was to put on a rear extension,
0:37:43 > 0:37:46I think you could probably achieve well in excess of 450,
0:37:46 > 0:37:48maybe even up to 460.
0:37:48 > 0:37:50So, with or without an extension,
0:37:50 > 0:37:52those are pretty encouraging figures.
0:37:52 > 0:37:55What about its rental potential?
0:37:56 > 0:37:58This property, if renovated to a good standard,
0:37:58 > 0:38:01would rent for approximately £1,500 per calendar month.
0:38:04 > 0:38:07Well, this property certainly gets a thumbs up from me.
0:38:07 > 0:38:08It's not in bad condition
0:38:08 > 0:38:12and there's no sign of any worrying structural issues to contend with,
0:38:12 > 0:38:15but there is still room to modernise it.
0:38:15 > 0:38:18I would really think about maximising its end value,
0:38:18 > 0:38:22and you can start with replacing those windows.
0:38:22 > 0:38:24So let's see what happened when it went to auction.
0:38:27 > 0:38:31We move on to lot 31, back to Streatham.
0:38:31 > 0:38:33Three-bed mid-terraced house.
0:38:33 > 0:38:36Start at...230.
0:38:36 > 0:38:38230,000 down here.
0:38:38 > 0:38:40235 anywhere?
0:38:40 > 0:38:43235. 240, sir.
0:38:43 > 0:38:45245. 250.
0:38:45 > 0:38:47255.
0:38:47 > 0:38:49260.
0:38:49 > 0:38:50265.
0:38:50 > 0:38:51270...
0:38:51 > 0:38:55Well, maybe not surprisingly, there was a real battle
0:38:55 > 0:39:00for the Streatham house, and we rejoin the bidding at £320,000.
0:39:00 > 0:39:02320.
0:39:03 > 0:39:05321.
0:39:05 > 0:39:07322. 323.
0:39:07 > 0:39:09324.
0:39:10 > 0:39:12325, 326.
0:39:12 > 0:39:15326, 327.
0:39:15 > 0:39:18328, 329.
0:39:18 > 0:39:20330.
0:39:20 > 0:39:22331. 332.
0:39:22 > 0:39:24333...
0:39:26 > 0:39:31332, at the end, first time, second time...
0:39:31 > 0:39:34Third and last time. If you're all done?
0:39:34 > 0:39:37Sold, 332. Well bid.
0:39:37 > 0:39:40And the delighted bidder is property developer Shaz,
0:39:40 > 0:39:46who, despite paying £332,000 - £82,000 over the guide price -
0:39:46 > 0:39:51was clearly pleased with his latest property purchase.
0:39:52 > 0:39:55He joined me back at the three-bed Streatham house
0:39:55 > 0:39:58to tell me why he wanted it so much.
0:40:00 > 0:40:02- Shaz, congratulations. - Yeah, thank you.
0:40:02 > 0:40:03- Well done.- Yeah.
0:40:03 > 0:40:05This is quite a neat little property, isn't it?
0:40:05 > 0:40:07Yeah, I'm very happy to buy this place.
0:40:07 > 0:40:09Really wanted to get this one and we got it.
0:40:09 > 0:40:12So, did you research, did you come and view it beforehand?
0:40:12 > 0:40:15Yeah, I came myself and then I sent my brother for a second viewing,
0:40:15 > 0:40:17so he came around and said it's a good property.
0:40:17 > 0:40:18It just needs cosmetic work
0:40:18 > 0:40:20and hopefully we can get it straight on the market.
0:40:20 > 0:40:22Cos you are thinking about selling it on?
0:40:22 > 0:40:25Well, ideally, I've spoken to one of my friends.
0:40:25 > 0:40:28He wants to put an open day three days from now.
0:40:28 > 0:40:30- HIGH-PITCHED: - What?! So, in three days...
0:40:30 > 0:40:33You better take those curtains down. You better paint this wall.
0:40:33 > 0:40:35OK, you've got a lot of things to do in three days!
0:40:35 > 0:40:37Yeah, in three days hopefully we can...
0:40:37 > 0:40:40We're not going to do major, major work, so we're going to do...
0:40:40 > 0:40:43a clean-up and tidy-up, maybe some paintwork.
0:40:43 > 0:40:45And can I be cheeky and ask you -
0:40:45 > 0:40:47how much do you think you are going to market this for?
0:40:47 > 0:40:51Well, basically, the average house now around here is...
0:40:51 > 0:40:53Well, fully done up, is 450,000.
0:40:53 > 0:40:58So we've priced it in excess of 400,000 to allow
0:40:58 > 0:41:00a 50,000 budget of somebody to come in
0:41:00 > 0:41:02and put their own design to the property.
0:41:02 > 0:41:04Well, there's no hanging about here for Shaz,
0:41:04 > 0:41:07and if he could get anywhere around that £400,000 mark
0:41:07 > 0:41:09straightaway for this house, well,
0:41:09 > 0:41:15that would be a significant mark-up from the 332,000 he paid at auction.
0:41:15 > 0:41:17No wonder he's pleased to get it!
0:41:20 > 0:41:23So, what happens if - and this is only an if -
0:41:23 > 0:41:26you don't get much interest on your open day, then what?
0:41:26 > 0:41:29Well, ideally, we'll have some offers out there
0:41:29 > 0:41:31because the market's on fire at the moment,
0:41:31 > 0:41:34but if we don't have an offer of what I'm asking for,
0:41:34 > 0:41:35then probably I'll do some more work,
0:41:35 > 0:41:38depending on what feedback I get from the open day.
0:41:38 > 0:41:41- OK then, what sort of budget have you got for the work here?- OK...
0:41:41 > 0:41:44Well, the first budget is approximately £2,000, so...
0:41:44 > 0:41:46SHE GULPS LOUDLY
0:41:46 > 0:41:47- Yeah!- £2,000?!
0:41:47 > 0:41:49- Yeah, that's the first budget... - That's low!
0:41:49 > 0:41:50I just want to do double glazing,
0:41:50 > 0:41:53clean the place up, really, and maybe do some painting, really.
0:41:53 > 0:41:55The second budget is about 10,000 to 15,000,
0:41:55 > 0:41:57where I can do an extension
0:41:57 > 0:42:00and do the kitchen work and maybe knock out the wall, etc.
0:42:00 > 0:42:04OK, so you're really hoping for plan A, which is two grand?
0:42:04 > 0:42:05I mean, I've got family involvement,
0:42:05 > 0:42:08so hopefully I'll be paying them with dinners or something.
0:42:08 > 0:42:10- Dinners out in restaurants or something!- Really?
0:42:10 > 0:42:13So there's no cash changing hands, it's all down to the family...
0:42:13 > 0:42:15- and a few meals?! - They have to help out where they can.
0:42:15 > 0:42:17I need their help, and then, you know,
0:42:17 > 0:42:19when they need help, I'm there for them.
0:42:19 > 0:42:22OK. What about that garden? That does need a tidy-up.
0:42:22 > 0:42:25Well, luckily my dad, he's an avid gardener and he loves gardening.
0:42:25 > 0:42:27He wants to get in there and do some gardening, so...
0:42:27 > 0:42:29And does he know he's got two days to do it in?!
0:42:29 > 0:42:32Well, that's what he said, and it's a bit cold as well, so I might have
0:42:32 > 0:42:36two people working with him maybe, just tidying up the place, really.
0:42:36 > 0:42:38So this is going to be a real team effort.
0:42:38 > 0:42:42It's all about building what is very much a family business.
0:42:42 > 0:42:44Why do you like to do this?
0:42:44 > 0:42:46What is it about developing that you love so much?
0:42:46 > 0:42:49I've been brought up developing property from a young age.
0:42:49 > 0:42:51I've seen my father do it, my grandfather do it,
0:42:51 > 0:42:54and he started off this family business of property development.
0:42:54 > 0:42:58My father continued it and now I've kind of taken over.
0:42:58 > 0:43:00So I just love working with property...
0:43:00 > 0:43:02I mean, every property is a new thing -
0:43:02 > 0:43:04it's not the same -
0:43:04 > 0:43:07it's a new project, it's a new adventure, so...
0:43:07 > 0:43:08- Mm.- So, it's fun.
0:43:08 > 0:43:10Shaz, I'm really excited for you, good luck.
0:43:10 > 0:43:12- Thank you so much.- Thank you.
0:43:12 > 0:43:14So, property runs in Shaz's blood
0:43:14 > 0:43:18and it sounds like he's got his family workforce behind him
0:43:18 > 0:43:22with his latest project...at the cost of a few dinners, of course!
0:43:22 > 0:43:25But a lot hinges on that all-important open day,
0:43:25 > 0:43:28taking place in only a few days' time.
0:43:28 > 0:43:31Will he find a buyer, or will he have to spend more time and money
0:43:31 > 0:43:33before selling this on?
0:43:33 > 0:43:36Join me later in the programme and you can find out.
0:43:39 > 0:43:41Well, we've seen one completed project,
0:43:41 > 0:43:42but what about the other two?
0:43:42 > 0:43:46- Did they go to plan?- Oh, I think it's time to take a look.
0:43:49 > 0:43:51We return to Longton now,
0:43:51 > 0:43:55one of the six towns that make up Stoke-on-Trent.
0:43:55 > 0:43:58And just outside Longton in nearby Adderley Green
0:43:58 > 0:44:02was where we found this three-bedroom semi.
0:44:04 > 0:44:08It had off-street parking and a good-sized garden,
0:44:08 > 0:44:11but the interior was less a home and more of a doggy-chew!
0:44:12 > 0:44:15Well, I think my first impressions were dogs...
0:44:15 > 0:44:17and I think that proves me right.
0:44:17 > 0:44:20Down here, you've got a little bit of plaster damage...
0:44:20 > 0:44:23A bit more dog damage down here, and as I look around the room -
0:44:23 > 0:44:26some more over there - I think there's a bit of work that needs to be done.
0:44:26 > 0:44:29Yes, as well as the interior looking rather ROUGH,
0:44:29 > 0:44:32it looked like the roof was a bit of a dog's dinner
0:44:32 > 0:44:34and would definitely need replacing.
0:44:35 > 0:44:40The top dog on auction day, with a successful bid of £58,000, was Kevin.
0:44:40 > 0:44:43You bought it, sir, well done.
0:44:43 > 0:44:45Kevin works in digital marketing,
0:44:45 > 0:44:47but had already renovated one property
0:44:47 > 0:44:50and was keen to get cracking with his second.
0:44:51 > 0:44:56- What do you envisage you're going to do with this?- Everything, really.
0:44:56 > 0:44:58- So this one, the roof needs fixing. - OK.
0:44:58 > 0:45:00So that's the first and most important thing.
0:45:00 > 0:45:04But apart from that, replaster all the walls and the ceilings,
0:45:04 > 0:45:05new doors, new skirts,
0:45:05 > 0:45:07- new architraves, new doorframes... - Yeah.
0:45:07 > 0:45:10A new bathroom, a new kitchen
0:45:10 > 0:45:13and if I can really squeeze the budget,
0:45:13 > 0:45:16maybe do something with the front drive as well.
0:45:17 > 0:45:21Kevin's budget for the work ahead was £15,000 and he'd given himself
0:45:21 > 0:45:27a timeframe of three to six months to get it ready for the lettings market.
0:45:30 > 0:45:33Three months later, we've returned to see how he's got on.
0:45:54 > 0:45:58The downstairs has gone from doggy damaged to rental ready.
0:45:59 > 0:46:01Kevin has gutted the property,
0:46:01 > 0:46:05removing all evidence of any problem pooches that once lived here
0:46:05 > 0:46:09and turned it into a property ideal for the rental market,
0:46:09 > 0:46:12with a brand-new kitchen being a particular highlight.
0:46:13 > 0:46:16So, what's changed in this room? Well, everything.
0:46:16 > 0:46:18So, removed all of the units,
0:46:18 > 0:46:20replastered the walls and the ceiling,
0:46:20 > 0:46:26put some new lights in and put in a nice, modern kitchen
0:46:26 > 0:46:28and I think it looks really nice.
0:46:28 > 0:46:31Let's see if the good work continues upstairs.
0:46:38 > 0:46:42The three bedrooms upstairs have been neutrally decorated
0:46:42 > 0:46:43to a high standard.
0:46:50 > 0:46:54And also up here, that chewed banister is a thing of the past.
0:46:55 > 0:46:58As well as that, there's a brand-new bathroom to boot.
0:47:00 > 0:47:04Out the front, the kerb appeal isn't as good as it could be...
0:47:06 > 0:47:08..but the back garden has been cleared up
0:47:08 > 0:47:11and reveals a great family-size space.
0:47:14 > 0:47:18Kevin has a few bits and bobs to do here...
0:47:18 > 0:47:21but compared to how it looked, he's done a great job.
0:47:22 > 0:47:25So, in the last three months, a lot's changed in the house, really.
0:47:25 > 0:47:27Um... Starting at the top, there's a brand-new roof.
0:47:30 > 0:47:34A new kitchen, new bathroom, plaster on the walls and ceilings,
0:47:34 > 0:47:36new woodwork...
0:47:36 > 0:47:38New flooring, new plumbing,
0:47:38 > 0:47:40new radiators, new sockets and switches...
0:47:40 > 0:47:44almost everything you see and touch is different to how it was before.
0:47:44 > 0:47:47So there weren't any real issues that I weren't expecting,
0:47:47 > 0:47:50mainly because I planned on doing everything.
0:47:50 > 0:47:53So some of the walls had to go all the way back to brick,
0:47:53 > 0:47:56when, you know, I hoped we might be able to get away with
0:47:56 > 0:47:57just re-skimming them,
0:47:57 > 0:48:00and I thought maybe that getting rid of the rubbish
0:48:00 > 0:48:02that was in the house would take two or three skips -
0:48:02 > 0:48:06in the end it took about seven, so that was a bit more work.
0:48:06 > 0:48:09But bearing in mind that I planned on replacing
0:48:09 > 0:48:11almost everything in the house, though,
0:48:11 > 0:48:13there weren't that many surprises.
0:48:15 > 0:48:19A drama-free project is always a welcome relief for any renovator
0:48:19 > 0:48:24and to add to the good news, Kevin has already let the property out.
0:48:25 > 0:48:29But with a total transformation, not to mention a new roof here,
0:48:29 > 0:48:31there were bound to be a few big bills.
0:48:32 > 0:48:34So how is his budget looking now?
0:48:38 > 0:48:41Well, I had 15,000, including a very generous contingency.
0:48:41 > 0:48:44Seeing as everything's gone really to plan,
0:48:44 > 0:48:48it has come in at just under 10,000, including all of the fees
0:48:48 > 0:48:51for solicitors and the transaction fees, etc,
0:48:51 > 0:48:52which I'm really pleased with.
0:48:52 > 0:48:55Not only did Kevin come in under budget,
0:48:55 > 0:49:00but he also completed 95% of the work here in just three months.
0:49:05 > 0:49:09Kevin has spent around £68,000 on the house
0:49:09 > 0:49:12and even though he's found a tenant to let the property already,
0:49:12 > 0:49:16it will be interesting to hear what to local estate agents think of
0:49:16 > 0:49:20he's achieved, starting with the agent who saw it originally.
0:49:22 > 0:49:25From when I initially visited the property,
0:49:25 > 0:49:27there was quite a bit of damage from the pets
0:49:27 > 0:49:30so I think he's done a really good job of tidying it up
0:49:30 > 0:49:31and how he's got it now.
0:49:31 > 0:49:32I like the kitchen.
0:49:32 > 0:49:34It's a nice clean-lined, fitted kitchen,
0:49:34 > 0:49:38overlooking the rear garden, so when you're standing there cooking
0:49:38 > 0:49:41and doing the dishes, you've got something pleasant to look onto.
0:49:44 > 0:49:46So, the agents are sounding pretty impressed,
0:49:46 > 0:49:50but if Kevin was to decide to sell the property in the future,
0:49:50 > 0:49:53what kind of value could he place on it?
0:49:53 > 0:49:58I would put this on the open market at an asking price of £75,000.
0:49:58 > 0:50:01If the vendor was looking at the sale market,
0:50:01 > 0:50:04I would recommend it was put on the market in the region of £80,000.
0:50:04 > 0:50:06That's more or less what I thought.
0:50:06 > 0:50:09I'd lean more towards the 80,000 than 75,
0:50:09 > 0:50:12but that's definitely in the area I was expecting.
0:50:14 > 0:50:17If you were to take that top valuation of £80,000, it would
0:50:17 > 0:50:21mean a pre-tax profit for Kevin of around £12,000.
0:50:21 > 0:50:24But having already let the property out,
0:50:24 > 0:50:27let's see if what he's getting and the agents' valuations match up.
0:50:27 > 0:50:31I'd recommend an asking price of somewhere in the region
0:50:31 > 0:50:34of £450 per calendar month, to possibly 475 per calendar month.
0:50:34 > 0:50:38I think the rent he should be asking on this property is £475
0:50:38 > 0:50:40per calendar month.
0:50:40 > 0:50:41I think it's a bit low.
0:50:41 > 0:50:46I had a value of 500 to 550, and it's rented out at 500.
0:50:46 > 0:50:49Kevin's rental of £500 per month gives it a very impressive
0:50:49 > 0:50:51yield of over 8%,
0:50:51 > 0:50:56making his second venture into property developing a great success.
0:50:56 > 0:50:59But will Kevin be going full time now?
0:51:00 > 0:51:01I'll keep my day job.
0:51:01 > 0:51:05I think if you had too many properties, it would turn into work.
0:51:10 > 0:51:12Ah, yes, but the level of work you need to do
0:51:12 > 0:51:14depends on the property you buy.
0:51:14 > 0:51:18In Streatham, we came across a three-bed property that was more
0:51:18 > 0:51:24Sheppey than chic, but just really needed tidying up.
0:51:24 > 0:51:26With the possibility of extending or opening up the kitchen
0:51:26 > 0:51:30and with what was a £250,000 guide price,
0:51:30 > 0:51:33this actually looked a very attractive proposition.
0:51:35 > 0:51:37Sold, 332. Well bid.
0:51:39 > 0:51:46And so it was a delighted Shaz who snapped this place up for 332,000.
0:51:46 > 0:51:49Now, Shaz is an experienced property developer
0:51:49 > 0:51:52and has been part of the family team from a young age
0:51:52 > 0:51:57and he had his own thoughts about getting the most out of this house.
0:51:57 > 0:51:59It just needs cosmetic work
0:51:59 > 0:52:01and hopefully we can get it straight on the market.
0:52:01 > 0:52:04Because you are thinking about selling it on?
0:52:04 > 0:52:06Ideally, I've spoken to one of my friends.
0:52:06 > 0:52:10- He wants to put an open day three days from now.- WHAT?!
0:52:10 > 0:52:12Yep, you heard him right!
0:52:12 > 0:52:16Three days, a £2,000 budget and a family team
0:52:16 > 0:52:21mucking in to do the work and then he hoped to sell it on.
0:52:21 > 0:52:24# Not long now till I step inside
0:52:24 > 0:52:29# The place where we all reside
0:52:29 > 0:52:34# Three more days and I'm home... #
0:52:35 > 0:52:39But could he really make this a home that someone wanted to
0:52:39 > 0:52:41buy in just three days?
0:52:41 > 0:52:43Well, now, six weeks later,
0:52:43 > 0:52:48we're back to find out what did actually happen.
0:52:51 > 0:52:55As soon as I had the keys, three days later we had an open house.
0:52:55 > 0:52:58We had an offer of 380,000.
0:53:00 > 0:53:03I really wanted to sell it for a quick sale,
0:53:03 > 0:53:06but, you know, mature heads like my father,
0:53:06 > 0:53:09he said, "Why don't we hold onto it? We could get a better rate
0:53:09 > 0:53:12"and why don't we rent it out? Because the market is really good."
0:53:12 > 0:53:17So, I listened to people who were more senior than me. So...
0:53:17 > 0:53:19Hopefully, I made the right decision.
0:53:30 > 0:53:34And although Shaz may not have got the fast sale he wanted,
0:53:34 > 0:53:39they still haven't hung around here, with the house already let out
0:53:39 > 0:53:40and a tenant moved in.
0:53:40 > 0:53:45But what work did they actually do in that three-day makeover?
0:53:45 > 0:53:47We changed the double glazing on the front
0:53:47 > 0:53:49so we've got brand-new double glazing.
0:53:49 > 0:53:51We also painted the front of the house.
0:53:51 > 0:53:56The back garden needed a bit of cleaning up.
0:53:56 > 0:54:00Inside, we just had to shampoo the carpets,
0:54:00 > 0:54:02touch up the walls really and, luckily,
0:54:02 > 0:54:05this house was a really good, easy, quick job.
0:54:05 > 0:54:08Yes, it was very together when we last saw it
0:54:08 > 0:54:11so upstairs really just shows signs of a house...
0:54:11 > 0:54:13well, turning into a home, I guess.
0:54:19 > 0:54:23But who did carry out the small amount of work that was needed?
0:54:23 > 0:54:26I had my own dream team of builders, which is my father,
0:54:26 > 0:54:27my brother and myself.
0:54:27 > 0:54:30We keep it in the family and, hopefully,
0:54:30 > 0:54:32they will share in my success as well.
0:54:32 > 0:54:33So, for a short burst,
0:54:33 > 0:54:36the family team have pulled together to get this place
0:54:36 > 0:54:38smartened up a bit.
0:54:38 > 0:54:40Mind you, this is a fairly well-oiled team
0:54:40 > 0:54:43and they've had plenty of practice after all.
0:54:43 > 0:54:46So, how many properties is it you've got now, Shaz?
0:54:46 > 0:54:49I have a few properties.
0:54:49 > 0:54:51I number them between one and 100.
0:54:51 > 0:54:53So, I'll leave it at that!
0:54:53 > 0:54:55Well, no wonder he can't hang around.
0:54:55 > 0:55:00Shaz is a busy man and he's certainly got the property bug.
0:55:00 > 0:55:02# I can't help myself... #
0:55:05 > 0:55:08But did the dream team's work keep the all-important costs down?
0:55:10 > 0:55:16We spent approximately £2,300 on improving the property.
0:55:16 > 0:55:18That includes double glazing, cleaning the carpet,
0:55:18 > 0:55:22getting the white goods in the kitchen, which is a cooker,
0:55:22 > 0:55:25fridge and a washing machine.
0:55:25 > 0:55:31With all the costs and everything, it came to £348,000.
0:55:32 > 0:55:35Right, so an all-in spend -
0:55:35 > 0:55:38stamp duty, tax, auction expenses,
0:55:38 > 0:55:43the lot - for £348,000. That sounds pretty good to me.
0:55:43 > 0:55:47But should he have gone a little further with this refurbishment?
0:55:47 > 0:55:49What do to local estate agents think?
0:55:49 > 0:55:51First, the agent who saw it last time.
0:55:51 > 0:55:53The second time in the property now,
0:55:53 > 0:55:56looking around, it looks a little similar to the first time.
0:55:56 > 0:55:58Not much has changed, apart from when I walked to the
0:55:58 > 0:56:02front of the house, I could see that they've changed the double glazing.
0:56:02 > 0:56:05Looking around, generally, the property looks brighter
0:56:05 > 0:56:06so I believe he's painted it.
0:56:06 > 0:56:08The condition of the house is OK.
0:56:08 > 0:56:10It's nice to see new windows have gone in,
0:56:10 > 0:56:12new appliances in the kitchen.
0:56:12 > 0:56:15It would possibly have been beneficial to do a little more work,
0:56:15 > 0:56:17maybe update the carpets and the flooring throughout.
0:56:17 > 0:56:19Possibly decorate.
0:56:19 > 0:56:21Maybe the rear windows as well, but compared to other
0:56:21 > 0:56:26properties in the area, this one is definitely of a good standard.
0:56:26 > 0:56:29So, it seems Shaz has generally done the right thing here,
0:56:29 > 0:56:33but was he right to turn down that £380,000 offer
0:56:33 > 0:56:36he got on the house on the open day?
0:56:38 > 0:56:42This property would sell for approximately £400,000.
0:56:42 > 0:56:46To sell this property in its current layout and condition,
0:56:46 > 0:56:50we would expect to achieve around £410,000.
0:56:50 > 0:56:52That's exactly what I thought,
0:56:52 > 0:56:54but I'm probably going to hold on for 425.
0:56:54 > 0:56:58In at least six months to a year, the values are going to go up.
0:57:00 > 0:57:03Even if property prices don't rise that much,
0:57:03 > 0:57:08that £400,000 valuation could see a £52,000 profit.
0:57:08 > 0:57:11Well, that's not bad for three days' work!
0:57:11 > 0:57:15But how on the money is he with his rental values?
0:57:15 > 0:57:18This property would rent for approximately £1,500 to £1,600
0:57:18 > 0:57:19per calendar month.
0:57:19 > 0:57:21Rental income for this property,
0:57:21 > 0:57:26we'd expect to achieve between 1,500 per calendar month, and 1,550.
0:57:26 > 0:57:30That's more or less spot-on, because we got it rented out
0:57:30 > 0:57:34for £1,500 per calendar month, so I'm really happy with that.
0:57:34 > 0:57:39It's a good rent and probably that's why I'll rent it out for longer now.
0:57:39 > 0:57:41£1,500 for calendar month would see a rental
0:57:41 > 0:57:44yield of 5%, which is OK,
0:57:44 > 0:57:47especially if his 99 other properties
0:57:47 > 0:57:52are generating the same revenue. So, what's next?
0:57:52 > 0:57:56What I want to do next is probably retire in a few years' time
0:57:56 > 0:58:00and just be travelling and enjoying life more.
0:58:03 > 0:58:06That's all for today's show, but Lucy, Dion and I will be back
0:58:06 > 0:58:10with you with more properties that were sold under the hammer.
0:58:10 > 0:58:11- See you next time.- Goodbye.