0:00:02 > 0:00:03Hello, welcome to the programme.
0:00:03 > 0:00:05I don't know about you guys, but I love unusual properties.
0:00:05 > 0:00:07The more character, the better for me.
0:00:07 > 0:00:10Yes, and no matter how quirky a house is, there is
0:00:10 > 0:00:13usually somebody out there who is absolutely perfect for it.
0:00:13 > 0:00:16Yes, out there your perfect property could be waiting for you,
0:00:16 > 0:00:18and maybe you could buy it under the hammer.
0:00:44 > 0:00:46When you open the auction catalogue,
0:00:46 > 0:00:49the sheer range of properties surprises you.
0:00:49 > 0:00:51And if you're after something popular,
0:00:51 > 0:00:54- sometimes bidding can be a real battle.- Yes.
0:00:54 > 0:00:58But who was successful in the battle for their perfect property?
0:00:58 > 0:01:01Let's find out the properties we are featuring on today's show.
0:01:02 > 0:01:06First up, in Peckham, a ceiling has me hopping mad.
0:01:06 > 0:01:11Low ceilings. Look, I'm a shortie and I can even touch the ceiling.
0:01:12 > 0:01:16Whilst in the borough of Cadishead in Manchester, I need to watch
0:01:16 > 0:01:17where I'm stepping.
0:01:17 > 0:01:20That'll need to be sorted as soon as possible.
0:01:20 > 0:01:21Don't like that at all.
0:01:22 > 0:01:25And in the snowy Rhondda Valley, Wales, I venture
0:01:25 > 0:01:28outside to find positives.
0:01:28 > 0:01:33Actually, coming out here, it gets really interesting, doesn't it?
0:01:33 > 0:01:35All these properties have been sold at auction.
0:01:35 > 0:01:38We will find out who bought them and how much they paid
0:01:38 > 0:01:40when they went under the hammer.
0:01:40 > 0:01:41Well done, sir.
0:01:47 > 0:01:50We all know about Peckham in south-east London
0:01:50 > 0:01:54as the setting of the popular comedy Only Fools And Horses.
0:01:54 > 0:01:57But far from the urban gritty home of Del Boy
0:01:57 > 0:02:01and Rodney, Peckham has changed dramatically over
0:02:01 > 0:02:04the past 30 years or so, with 3,000 high-rise flats
0:02:04 > 0:02:07demolished in the late 1990s to make way for new housing.
0:02:09 > 0:02:11It now has a new library,
0:02:11 > 0:02:14town square, and efforts are being made to renovate the streets.
0:02:14 > 0:02:17A vibrant multicultural area.
0:02:17 > 0:02:20There aren't many Reliant Robins driving around these days,
0:02:20 > 0:02:22but it does have a unique buzz about it.
0:02:22 > 0:02:24MUSIC: Only Fools And Horses Theme
0:02:26 > 0:02:28This is a convenient spot.
0:02:28 > 0:02:30It is a ten-minute walk to Peckham high street
0:02:30 > 0:02:33and it is a six-minute walk to Peckham Rye station.
0:02:33 > 0:02:36Although the railway bridge, well, it is just over there,
0:02:36 > 0:02:39so you will have a little bit of train noise to contend with.
0:02:39 > 0:02:42Now, I am here to see a one-bedroom flat
0:02:42 > 0:02:45and it had a guide price of £250,000-plus.
0:02:46 > 0:02:49But, unfortunately, it is down there on the lower ground floor,
0:02:49 > 0:02:53which immediately says dark and dingy to me.
0:02:54 > 0:02:56But at least it does have its own front door.
0:03:01 > 0:03:06Oh, glad there is a nice wooden floor in here...not!
0:03:06 > 0:03:11It is exactly as I'd expect. Such a shame.
0:03:11 > 0:03:13It is in a bit of a state, it is a bit smelly, as well,
0:03:13 > 0:03:18I don't think it has been lived in for a long time. Low ceilings.
0:03:18 > 0:03:23Look, I'm a shortie and I can even touch the ceiling. Strip lighting.
0:03:23 > 0:03:25You have got this sort of bay window,
0:03:25 > 0:03:31but you look out onto some fantastic rubble, just all piled up outside.
0:03:31 > 0:03:33So you need a good old clear up with this property.
0:03:33 > 0:03:35I hope the rest of the flat is a little bit better.
0:03:35 > 0:03:37Onwards along the corridor.
0:03:39 > 0:03:44The only bit that feels like it has a sense of space is this hallway.
0:03:44 > 0:03:47Look, you have got this little area here which is quite nice,
0:03:47 > 0:03:48and the bedroom through here.
0:03:48 > 0:03:50It is not the biggest of bedrooms,
0:03:50 > 0:03:52but it has got some little wardrobes that are built in.
0:03:52 > 0:03:53So that is handy.
0:03:53 > 0:03:56You have got a nice window as well, loads of light coming in there.
0:03:56 > 0:04:00And right at the back of the property is the kitchen.
0:04:00 > 0:04:03Oh, dear, big hole down at the bottom.
0:04:03 > 0:04:05You have got a boiler there, I suppose that looks
0:04:05 > 0:04:08like it is in good condition, but you would certainly need to change it.
0:04:08 > 0:04:11And look what is through there, the bathroom. Grotty.
0:04:11 > 0:04:13You're going to need to change that.
0:04:13 > 0:04:16I am just thinking, with my developer's head on,
0:04:16 > 0:04:18could you turn this into a two-bedder?
0:04:18 > 0:04:21Could you add that much value by taking this kitchen out
0:04:21 > 0:04:23and putting it into the lounge area,
0:04:23 > 0:04:25and then turning this into a bedroom?
0:04:25 > 0:04:29I don't think so, because then you have got the bathroom leading off.
0:04:29 > 0:04:31I think I would leave this as a one-bedder.
0:04:31 > 0:04:35Spend a bit of money on it and it could be quite a nice surprise.
0:04:35 > 0:04:37# Just give me a chance
0:04:37 > 0:04:41# Just give me a chance... #
0:04:41 > 0:04:46The key to transforming a dark, dank and dingy basement flat is lighting.
0:04:46 > 0:04:49Maximising daylight opportunities and, when all else fails,
0:04:49 > 0:04:54work a bit of light magic with lamps and down lighting.
0:04:54 > 0:04:57What you sometimes lose on the light front with a basement flat,
0:04:57 > 0:05:02you gain with outside space. Mmm, I wonder.
0:05:03 > 0:05:06There is something else you get with this flat.
0:05:06 > 0:05:08You should never take this for granted in London
0:05:08 > 0:05:11because you get your own back garden here.
0:05:11 > 0:05:14This is definitely a bonus, it being on the lower ground floor,
0:05:14 > 0:05:17and you get direct access straight out here, as well,
0:05:17 > 0:05:20as well as a lovely spot to bask in the sunshine
0:05:20 > 0:05:24in our lovely English summers - this adds value and desirability.
0:05:24 > 0:05:27Definitely a big bonus for this flat.
0:05:29 > 0:05:31And you could improve it further with some patio doors leading
0:05:31 > 0:05:34out to the garden.
0:05:34 > 0:05:38So this one-bedroom basement flat does have potential.
0:05:38 > 0:05:42What does a local property agent think about this Peckham pad, then?
0:05:42 > 0:05:44My first impressions of the property are that it did require
0:05:44 > 0:05:47modernisation, it required new flooring, in my opinion.
0:05:47 > 0:05:51The walls also needed to be redone, re-plastered, what have you.
0:05:51 > 0:05:54A new kitchen, new bathroom, the usual things.
0:05:54 > 0:05:56And if you carried out these works,
0:05:56 > 0:06:02what kind of values could you expect against that 250 grand guide price?
0:06:02 > 0:06:07Once renovated, this property could sell for £415,000 or it could
0:06:07 > 0:06:09rent for £1,300 per calendar month.
0:06:12 > 0:06:16OK, I take back some of my initial reservation.
0:06:16 > 0:06:20This flat, well, it certainly is more spacious than I was expecting.
0:06:20 > 0:06:23Yes, it needs a lot of work, but, done up
0:06:23 > 0:06:27and in a fantastic location, who thought this Peckham palace
0:06:27 > 0:06:31could pop them on the road to becoming a millionaire?
0:06:31 > 0:06:35Let's see what happened when it went under the hammer.
0:06:35 > 0:06:38One-bedroom lower ground floor flat, in need of modernisation.
0:06:38 > 0:06:42Who wants to give me a start on this, lot 77? 290 anywhere?
0:06:42 > 0:06:46If not, you tell me. What about 270? I'll try and help. Start it off.
0:06:46 > 0:06:50270, thank you. 275, thank you.
0:06:50 > 0:06:55280? 285? 281, then? 281. 282.
0:06:55 > 0:06:58283. 284. 285.
0:06:58 > 0:07:01Anybody else, for lot 77?
0:07:01 > 0:07:04If not... 286.
0:07:04 > 0:07:07More competition. 287. 288. 289...
0:07:07 > 0:07:12Two bidders had locked horns and neither one was willing to give up.
0:07:12 > 0:07:16We rejoin the action with the bidding at £310,000.
0:07:16 > 0:07:19311, 312.
0:07:19 > 0:07:22313. 314.
0:07:22 > 0:07:25315? No?
0:07:25 > 0:07:28It is with you, sir, with the scarf, £314,000.
0:07:28 > 0:07:32314, for the first. 314, for the second.
0:07:32 > 0:07:36314, for the third and final time. Sold, 314.
0:07:36 > 0:07:40The two successful bidders are Justin and Andy.
0:07:42 > 0:07:46Justin, here on the right, is an experienced developer,
0:07:46 > 0:07:49whilst this is Andy's first development.
0:07:49 > 0:07:52And while the hammer fell at 314,000, that is
0:07:52 > 0:07:54not the price they paid.
0:07:54 > 0:07:56Time to find out a little bit more.
0:08:00 > 0:08:02Andy and Justin, lovely to meet you today.
0:08:02 > 0:08:06Now, my question to you guys is, this has completed recently,
0:08:06 > 0:08:09but the auction was such a long time ago.
0:08:09 > 0:08:11- What has been going on? - Unfortunately,
0:08:11 > 0:08:14we had some issues with our solicitors and,
0:08:14 > 0:08:18due to that, we had a notice to complete issued
0:08:18 > 0:08:21and we found out a day after the notice expired.
0:08:21 > 0:08:24Unfortunately, because it is an auction property,
0:08:24 > 0:08:27we were then into a situation where we had to go back to the seller
0:08:27 > 0:08:30and they wanted another £20,000,
0:08:30 > 0:08:36otherwise we forfeit our deposit of 30,000. So it was lose 30, pay 20.
0:08:36 > 0:08:37So...nightmare.
0:08:37 > 0:08:40You have just got to deal with it and if you want to complete
0:08:40 > 0:08:42and keep this property, you have just got to pay it.
0:08:42 > 0:08:43Yes.
0:08:53 > 0:08:56Justin has overseen many projects, from his clients'
0:08:56 > 0:09:02multi-million-pound developments to his own property renovations.
0:09:02 > 0:09:04But it goes to show, buying at auction can be hazardous,
0:09:04 > 0:09:06even for the experts.
0:09:06 > 0:09:09And Andy is a newbie to the developing game,
0:09:09 > 0:09:13but he has got plenty of practical building skills.
0:09:13 > 0:09:15So how did they come together on this one?
0:09:15 > 0:09:18- We have known each other for what...?- Two years.
0:09:18 > 0:09:21- Two and a half years now? - Yes, we met on a gas course.
0:09:21 > 0:09:23I did my gas safety with Andy.
0:09:23 > 0:09:26I had been doing pretty well on the developments and I said to him,
0:09:26 > 0:09:28"Look, come in with me, two heads are better than one."
0:09:28 > 0:09:31- This is his first one now. - So, Andy, what has he promised you?
0:09:31 > 0:09:37- Come on, tell me.- He has promised me riches and gold and millions.
0:09:37 > 0:09:39- So this is your first project together?- It is.
0:09:39 > 0:09:42Have you bought this property as a joint venture?
0:09:42 > 0:09:44I am funding this one.
0:09:44 > 0:09:49This, as it is my first venture, he is the experienced head on this one.
0:09:49 > 0:09:52- OK. - He is holding my hand through this.
0:09:52 > 0:09:57I sold my house, currently in a rented place now.
0:09:57 > 0:09:59So that is funding this.
0:09:59 > 0:10:01So that's a bit of pressure for you, Justin,
0:10:01 > 0:10:04- that he really is hoping to do very well on this property.- Yeah, it is.
0:10:04 > 0:10:06Now, what are you promising him?
0:10:06 > 0:10:09A speedy completion of this.
0:10:09 > 0:10:11It's not overly bad.
0:10:11 > 0:10:15It just wants...strip out, kitchen and bathroom gutting,
0:10:15 > 0:10:18new central heating system, which we'll do, cos we're plumbers and gas engineers.
0:10:18 > 0:10:21I'm a chippy, I'm also a tiler. All our mates are in the business.
0:10:21 > 0:10:23We'll spin it around, get it on the market.
0:10:23 > 0:10:26So how long is it going to take you to turn this place around?
0:10:26 > 0:10:28- What's your timeframe?- Five weeks.
0:10:28 > 0:10:31Yeah. Six absolute maximum.
0:10:31 > 0:10:33- Five weeks.- So you're saying you're going to allow...
0:10:33 > 0:10:36He's saying five weeks, but you're giving him a week
0:10:36 > 0:10:39- in case he goes over? - A week's grace, yes.
0:10:39 > 0:10:41But if it's not done after five...
0:10:41 > 0:10:43- I'm fired.- Yeah. - THEY LAUGH
0:10:44 > 0:10:47So Andy really is putting his money where his mouth is
0:10:47 > 0:10:51by selling his house to get the capital to work with Justin.
0:10:51 > 0:10:54And they hope a £12,500 budget
0:10:54 > 0:10:57can make them a whopping 100 grand profit.
0:10:57 > 0:10:59Sounds impossible?
0:10:59 > 0:11:02Not for captain confidence Justin.
0:11:02 > 0:11:04I actually think I've sold it already
0:11:04 > 0:11:06- to a client who walked in... - Oh!- Yeah.
0:11:06 > 0:11:09Hold on a minute. Justin, you're uber-uber-confident here,
0:11:09 > 0:11:13and I can tell little old Andy is, like, quivering in his boots.
0:11:13 > 0:11:15- I'm shaking.- You're emotional. You're worried.
0:11:15 > 0:11:18- I've been through everything over the last month.- Tell me, like what?
0:11:18 > 0:11:21Right from the auction, walking in there, you know,
0:11:21 > 0:11:23you get the flat, it's like,
0:11:23 > 0:11:25"Yeah, we've got it, we've got it!"
0:11:25 > 0:11:28But then you've got the paperwork and you start to think,
0:11:28 > 0:11:30"I've just spent all that money on this."
0:11:30 > 0:11:33- There really is a lot riding on this for you.- Yes.
0:11:33 > 0:11:35- You've got to get this right. - We will.
0:11:35 > 0:11:38And you're doing this purely and utterly to make a bit of money
0:11:38 > 0:11:41- to better your future.- Not just for me - mainly it's for my kids.
0:11:41 > 0:11:44You know, my kids are young and I don't want them
0:11:44 > 0:11:48to go through all the bad jobs that I had to go through to get here.
0:11:48 > 0:11:51It's going to be a lot of hard work, a lot of early mornings,
0:11:51 > 0:11:53late nights, but we'll get there.
0:11:53 > 0:11:56It would seem confidence is rubbing off from Justin to Andy.
0:11:56 > 0:11:59Both of them plan to do most of the work themselves,
0:11:59 > 0:12:02and in addition to the changes Justin just mentioned,
0:12:02 > 0:12:06they're going to try and raise the ceilings and get more light in.
0:12:06 > 0:12:10- Guys, I'm really excited for you. Good luck.- Thank you.- I hope you...
0:12:10 > 0:12:12I'm looking at him! Good luck.
0:12:12 > 0:12:14I hope you learn a lot, and, between you both,
0:12:14 > 0:12:17- I hope it goes really, really well. - Thank you so much.
0:12:17 > 0:12:19And you know, I think this is an exciting time for you
0:12:19 > 0:12:22- and I think Peckham really is moving along.- Definitely.
0:12:22 > 0:12:24- Thank you very much. - Thank you.- Thank you.
0:12:24 > 0:12:28With this purchase, Andy has sacrificed so much,
0:12:28 > 0:12:31and he really needs to turn a profit here.
0:12:31 > 0:12:35Will Justin deliver that £100,000 profit?
0:12:35 > 0:12:37Join me later on in the programme
0:12:37 > 0:12:39and you can find out how the boys get on.
0:12:44 > 0:12:47Lying about 26 miles from Manchester
0:12:47 > 0:12:49is the Salford suburb of Cadishead.
0:12:49 > 0:12:52With excellent links to Manchester city centre,
0:12:52 > 0:12:55this little suburb is a popular place for commuters
0:12:55 > 0:12:57looking for affordable housing.
0:13:00 > 0:13:02And talking of affordable, get this -
0:13:02 > 0:13:06the property I'm here to see is a two-bed mid-terrace house
0:13:06 > 0:13:09with a guide price of £50,000.
0:13:09 > 0:13:11It looks OK to me from here -
0:13:11 > 0:13:12let's take a look.
0:13:16 > 0:13:17OK, a long hallway, actually.
0:13:17 > 0:13:19Wasn't expecting that at all.
0:13:19 > 0:13:22Some original features still left in here.
0:13:22 > 0:13:24Some nice cornicing, as well.
0:13:24 > 0:13:27Some old-fashioned wallpaper there, some blown vinyl,
0:13:27 > 0:13:29and the stairs up to the bedrooms.
0:13:30 > 0:13:32Into the front room area.
0:13:32 > 0:13:34Well, into an open-plan area.
0:13:34 > 0:13:36Couple of double doors.
0:13:36 > 0:13:38More original features in here, as well.
0:13:38 > 0:13:40No fireplace, which I'm surprised at.
0:13:40 > 0:13:43So if you wanted to create a little bit more space,
0:13:43 > 0:13:46you could potentially take that chimney breast out
0:13:46 > 0:13:48into this room here.
0:13:48 > 0:13:51A lot of people do like to take the whole wall out,
0:13:51 > 0:13:54but maybe they wanted a bit of privacy on some occasions.
0:13:54 > 0:13:57Fireplace here, which looks like
0:13:57 > 0:13:59it's got a bit of DIY.
0:13:59 > 0:14:01That's kind of my DIY -
0:14:01 > 0:14:04poor. Not the best DIY.
0:14:04 > 0:14:06Golfer, maybe. Maybe there was a golfer in here.
0:14:09 > 0:14:11Not the best at golf - but darts
0:14:11 > 0:14:12I'm not bad at.
0:14:12 > 0:14:14OK, anyway, into the kitchen,
0:14:14 > 0:14:17which looks a decent size.
0:14:17 > 0:14:21A bit dirty, a bit messy, but you could clean this up quite easily.
0:14:21 > 0:14:24Everything seems to be OK in here.
0:14:24 > 0:14:26You could add some more cupboards there,
0:14:26 > 0:14:29maybe take this sink that's on a bit of a skew whiff here
0:14:29 > 0:14:32and just maybe place it so it's nice and symmetrical.
0:14:32 > 0:14:36Get rid of this old-fashioned '90s breakfast bar.
0:14:36 > 0:14:39But it's a decent space in here. Tidy it up,
0:14:39 > 0:14:43bit of TLC, you'd be fine, and you could use this no problem.
0:14:43 > 0:14:46# If that's the biggest problem I've got
0:14:46 > 0:14:47# No problem. #
0:14:49 > 0:14:52So far this property is looking in really good shape.
0:14:52 > 0:14:54Open-plan living is still very popular,
0:14:54 > 0:14:57so should appeal to lots of people.
0:14:57 > 0:14:59Hopefully upstairs is just as good.
0:15:03 > 0:15:05Oh, dear. That is very dodgy -
0:15:05 > 0:15:08that bottom step there has just collapsed.
0:15:08 > 0:15:10That'd need to be sorted as soon as possible.
0:15:10 > 0:15:12Don't like that at all.
0:15:12 > 0:15:14# Every little step I take
0:15:14 > 0:15:17# You will be there... #
0:15:17 > 0:15:19Oh, and it started so well.
0:15:19 > 0:15:21That one needs some investigating,
0:15:21 > 0:15:25and hopefully it won't involve that dreaded rising damp.
0:15:27 > 0:15:29Upstairs at the front of the house,
0:15:29 > 0:15:31there's a good-sized master bedroom
0:15:31 > 0:15:34with what looks like some cosmetic damage.
0:15:35 > 0:15:38And a smaller second bedroom which also needs some work.
0:15:38 > 0:15:41But overall, it's bright and spacious.
0:15:45 > 0:15:49Through to a large bathroom just here.
0:15:49 > 0:15:53I would imagine this was possibly two rooms at some stage,
0:15:53 > 0:15:56maybe a smaller snug bedroom at some stage.
0:15:56 > 0:16:00But there are more signs of damp and condensation.
0:16:00 > 0:16:04You see there's a bit of damage here in the ceiling, as well.
0:16:04 > 0:16:07Over here, there's more damage. Maybe that's come from outside.
0:16:07 > 0:16:09Might be guttering damage, as well.
0:16:09 > 0:16:12Or it could have been condensation from the shower being used -
0:16:12 > 0:16:16nowhere for it to escape at all, heating hasn't been working.
0:16:16 > 0:16:18And any forms of damp at all,
0:16:18 > 0:16:21any forms of moisture, can be costly.
0:16:21 > 0:16:24What I would advise is get them sorted as soon as possible.
0:16:26 > 0:16:29I know this property has been sat empty for some time,
0:16:29 > 0:16:33and with that comes a lack of ventilation and, of course, heat,
0:16:33 > 0:16:35which is the perfect recipe for damp.
0:16:37 > 0:16:38Out the back, there's a good space,
0:16:38 > 0:16:42but, like everything with this house, it needs some care and attention.
0:16:42 > 0:16:45And the outside seating leaves something to be desired.
0:16:47 > 0:16:49Time to hear from a local estate agent
0:16:49 > 0:16:51on what he thinks about this property,
0:16:51 > 0:16:53which is guided at £50,000.
0:16:54 > 0:16:57For a mid-terrace property, it feels damp all the way round.
0:16:57 > 0:17:01However, it was sold with the central heating not working,
0:17:01 > 0:17:04and I believe it hasn't worked for some time.
0:17:04 > 0:17:08It has got very cold, and that's obviously made internal walls -
0:17:08 > 0:17:11which is quite rare for a mid-terrace property -
0:17:11 > 0:17:13retain some moisture.
0:17:13 > 0:17:17So it might just dry out with new central heating,
0:17:17 > 0:17:20or, alternatively, you might actually have to put
0:17:20 > 0:17:22a new damp-proof course in. But I would be...
0:17:22 > 0:17:26I would err on caution and put a whole new damp-proof system in.
0:17:26 > 0:17:30Well, that could prove costly, but well worth it if it's needed.
0:17:30 > 0:17:33Just make sure you get the experts in to assess what the cause is
0:17:33 > 0:17:36and the best solution to the problem.
0:17:36 > 0:17:39Let's talk numbers now. Rental first.
0:17:41 > 0:17:45Rental-wise, once renovated to a good standard
0:17:45 > 0:17:47which is a good polished example,
0:17:47 > 0:17:52I would expect it to achieve between £500 and £550 per calendar month.
0:17:52 > 0:17:54And resale value?
0:17:54 > 0:17:56Once renovated, this property would achieve between
0:17:56 > 0:18:01£90,000 and £95,000 if it was done to a good standard.
0:18:03 > 0:18:07Not a bad property for that guide price of £50,000.
0:18:07 > 0:18:10But that damp and rot is a hefty concern.
0:18:10 > 0:18:12Is it damp or is it rot?
0:18:12 > 0:18:15Not one for the faint-hearted, not one for the inexperienced.
0:18:15 > 0:18:18Let's see who was brave enough to take it on
0:18:18 > 0:18:19when it went under the hammer.
0:18:23 > 0:18:25Two-bedroom mid-terraced house.
0:18:25 > 0:18:27Anybody here? 50?
0:18:27 > 0:18:29Looking for £50,000.
0:18:29 > 0:18:3045, then.
0:18:30 > 0:18:32At £45,000.
0:18:32 > 0:18:3545 here. At 45 I'm bid now.
0:18:35 > 0:18:36In ones. 46.
0:18:36 > 0:18:3947. Stood to the rear, can you?
0:18:39 > 0:18:4147? 47 I'm bid.
0:18:41 > 0:18:43Seated, 48, can you?
0:18:43 > 0:18:44At 48 I'm bid.
0:18:44 > 0:18:4649. 50.
0:18:46 > 0:18:4850 I'm bid.
0:18:48 > 0:18:5051. 52.
0:18:50 > 0:18:5253. 54.
0:18:52 > 0:18:5455. 56.
0:18:54 > 0:18:5657. 58.
0:18:56 > 0:18:5859. 60.
0:18:59 > 0:19:0160 I'm bid. One.
0:19:01 > 0:19:0262.
0:19:02 > 0:19:0462 I'm bid. 63.
0:19:04 > 0:19:07Shake of the head here. At 62, seated.
0:19:07 > 0:19:09At £62,000, with you, sir, seated.
0:19:09 > 0:19:11First time.
0:19:11 > 0:19:12Second time.
0:19:12 > 0:19:15If you're all done at £62,000...
0:19:15 > 0:19:18New bidder, just beat you to it, madam. With you now at 63.
0:19:18 > 0:19:2064, anyone?
0:19:20 > 0:19:2164 at the back.
0:19:21 > 0:19:2465. With you, sir.
0:19:24 > 0:19:26Against you, seated. Against you, madam.
0:19:26 > 0:19:28At £64,000, to the rear.
0:19:28 > 0:19:30First time.
0:19:30 > 0:19:32Second time. Are you done?
0:19:32 > 0:19:34At £64,000,
0:19:34 > 0:19:36all out, selling away, then.
0:19:36 > 0:19:38- GAVEL BANGS - Well done, sir.
0:19:41 > 0:19:44That successful bid of 64 grand
0:19:44 > 0:19:46went to property developer Andrew.
0:19:47 > 0:19:51Andrew give up his career in online advertising three years ago
0:19:51 > 0:19:53to pursue property developing full-time.
0:19:55 > 0:19:57I met him back at the house to find out more.
0:19:57 > 0:20:00- Andrew, nice to meet you. Congratulations...- Thank you.
0:20:00 > 0:20:04- ..on your fourth property in your portfolio.- Yes.
0:20:04 > 0:20:06Why particularly this area, and this house?
0:20:06 > 0:20:08Erm, well, there are a few reasons.
0:20:08 > 0:20:12It's within about half a mile or so of the local train station.
0:20:12 > 0:20:15There are good transport links to Manchester,
0:20:15 > 0:20:18so those are the sort of things I was looking at when I bought this.
0:20:18 > 0:20:21It's obviously quite cheap for what you were getting.
0:20:21 > 0:20:24What are your plans for it now you've got it, pal, and it's yours?
0:20:24 > 0:20:27I'm going to go through it, sort out the electrics,
0:20:27 > 0:20:29new gas central heating.
0:20:29 > 0:20:32There's a bit of a problem in the floors -
0:20:32 > 0:20:35there's a bit of rot over on this side.
0:20:36 > 0:20:39Be some joists need replacing, floorboards need replacing.
0:20:39 > 0:20:42New bathroom. Re-plaster the upstairs.
0:20:42 > 0:20:43Just go through and decorate it.
0:20:43 > 0:20:46There's a bit of work to be done on the kitchen.
0:20:46 > 0:20:49Sort out the outside. So going to be a bit of work done on it.
0:20:49 > 0:20:52So what do you mainly do, then? Do you normally buy your properties
0:20:52 > 0:20:54and sell them, live in them, rent them, or...?
0:20:54 > 0:20:57No, I tend to rent them out, yeah. Tend to rent them out.
0:20:57 > 0:20:58I bought it to rent out,
0:20:58 > 0:21:01so I'm not really looking for any capital appreciation in it,
0:21:01 > 0:21:03I'm looking more at the rental yield on it.
0:21:03 > 0:21:06Andrew, you mentioned you're going to sort some of the floor out.
0:21:06 > 0:21:08What do you mean? Tell us what you're going to do.
0:21:08 > 0:21:12Well, in the hallway, there's the bottom stair - that's moving.
0:21:12 > 0:21:15There's definitely a rotten joist under there.
0:21:15 > 0:21:18I did actually feel that as I came in the house. They should've warned me
0:21:18 > 0:21:20when I came in, but they didn't warn me about that bottom step.
0:21:20 > 0:21:24Yeah, there's definitely a rotten joist there, some rotten floorboards.
0:21:24 > 0:21:27We need to get all the laminate, rip all the laminate floor up.
0:21:27 > 0:21:30We need to properly have a look and see what's going on under there.
0:21:30 > 0:21:34There might be a bit of standing water under the floors, as well
0:21:34 > 0:21:37- which is causing the... - The movement, yeah.
0:21:37 > 0:21:40..the movement and the damp. It has had a damp-proof course,
0:21:40 > 0:21:43but it's probably that there's rising damp coming up
0:21:43 > 0:21:45and eating away at the joists underneath.
0:21:45 > 0:21:49But we need to get the floor up and have a look and see. Can't see at the moment what's going on.
0:21:49 > 0:21:51Is it going to be a big cost for you?
0:21:51 > 0:21:54Erm, it could be up to a couple of thousand. It depends.
0:21:54 > 0:21:56It depends how bad it is.
0:21:56 > 0:21:59We don't know till we pull the floor up and have a good look at it.
0:21:59 > 0:22:01# Looking good, looking fine, looking so pretty
0:22:01 > 0:22:03# So rotten to the bone... #
0:22:04 > 0:22:08Well, hopefully Andrew will find out that this property isn't rotten to the bone.
0:22:08 > 0:22:11There are lots of other cosmetic things to do,
0:22:11 > 0:22:14but Andrew seems to know his stuff, so hopefully nothing will faze him.
0:22:16 > 0:22:19But costs will mount up, so how is that budget looking?
0:22:21 > 0:22:23I'd like to do it for around 10,000.
0:22:23 > 0:22:25But between 10 and 15,000,
0:22:25 > 0:22:27depending on if the roof needs replacing, as well.
0:22:27 > 0:22:29Need to look at that.
0:22:29 > 0:22:31So I'd be happy with about £10,000.
0:22:31 > 0:22:34Most of that 10,000 budget will just be evenly balanced
0:22:34 > 0:22:37- among certain things? - Yeah, well, I would say
0:22:37 > 0:22:40the central heating will probably be a couple of thousand.
0:22:40 > 0:22:41The electrics will be a couple of thousand.
0:22:41 > 0:22:44Plastering, bathroom, maybe a couple of thousand.
0:22:44 > 0:22:47So it's quite evenly spread out over the work. Yeah.
0:22:47 > 0:22:50So tell us a bit more in-depth what you're actually going to do.
0:22:50 > 0:22:53Are you knocking down walls, are you... What have you got in mind?
0:22:53 > 0:22:56Well, upstairs there's quite a big bathroom at the moment.
0:22:56 > 0:22:58- It's huge, isn't it?- It is.
0:22:58 > 0:23:00For the size of the house it's a large bathroom,
0:23:00 > 0:23:02and it's got a split level floor.
0:23:02 > 0:23:05It's not really good to have a different level floor in a bathroom.
0:23:05 > 0:23:07Originally there would have been a small bedroom
0:23:07 > 0:23:10at the back of the property, so I'm planning on reinstating
0:23:10 > 0:23:13that partition and putting that small room back in.
0:23:13 > 0:23:16It'll still be big enough to have a full-size bath,
0:23:16 > 0:23:20- full-size sink.- OK.- It'll be a good enough size for the house,
0:23:20 > 0:23:22and then there'll be a small box room, as well.
0:23:22 > 0:23:25You going to whizz it through, or are you going to take your time with it?
0:23:25 > 0:23:27I'd like to get it done in three to four months.
0:23:27 > 0:23:30- That's quite quick, eh? - Yeah, quite quick.
0:23:30 > 0:23:33Have you got people that are sort of standing by, waiting to help you?
0:23:33 > 0:23:36Have you got a normal group of builders and helpers?
0:23:36 > 0:23:38Yeah, I've got a group of people that I normally use,
0:23:38 > 0:23:40and they're coming in and starting tomorrow.
0:23:40 > 0:23:42- HE LAUGHS Really?- Yeah, so...
0:23:42 > 0:23:44Yeah, there's a group of people I normally use
0:23:44 > 0:23:47- and they're all lined up. - They're not messing about, are they? - Nope. No, not at all.
0:23:47 > 0:23:51Andrew, I wish you all the best, and I hope you stay within that budget of yours
0:23:51 > 0:23:53and you don't find anything too bad below the feet.
0:23:53 > 0:23:56- Good luck.- Thank you very much. - Take care, good luck.- Thank you.
0:23:56 > 0:23:59So Andrew's change of career has served him well so far,
0:23:59 > 0:24:02but this is not going to be a straightforward project.
0:24:02 > 0:24:05He's got to rip up those floors - what's he going to find?
0:24:05 > 0:24:08You don't know, it might eat into that budget.
0:24:08 > 0:24:10And he's got to sort that damp out, as well.
0:24:10 > 0:24:11Will he keep within his timescale?
0:24:11 > 0:24:14You can find out later on in the programme.
0:24:15 > 0:24:18Still to come in the Rhondda Valley, Wales -
0:24:18 > 0:24:22what's that saying about best-laid plans of mice and men again?
0:24:22 > 0:24:26It wasn't anywhere near as straightforward as we'd hoped, no.
0:24:26 > 0:24:28Whilst in Cadishead, Manchester,
0:24:28 > 0:24:31three things you don't want to hear when renovating.
0:24:31 > 0:24:35There's woodworm, there's dry rot, there's wet rot.
0:24:39 > 0:24:42Back to south-east London now,
0:24:42 > 0:24:44in the popular borough of Peckham.
0:24:49 > 0:24:51It was in this up-and-coming area,
0:24:51 > 0:24:54famous for its association with Only Fools And Horses,
0:24:54 > 0:24:58that I came across this lower ground floor one-bedroom flat
0:24:58 > 0:25:01that had a guide price of - wait for it -
0:25:01 > 0:25:03250,000.
0:25:06 > 0:25:09It was dark and dingy, and the ceiling height -
0:25:09 > 0:25:12well, I couldn't Adam and Eve it!
0:25:12 > 0:25:13Low ceilings.
0:25:13 > 0:25:17Look, I'm a shortie and I can even touch the ceiling!
0:25:17 > 0:25:20# Come on get up high as the ceiling
0:25:20 > 0:25:22# Get up on the floor... #
0:25:22 > 0:25:24I'm sorry, but Del Boy himself
0:25:24 > 0:25:27would have been hard-pressed to find the positives here.
0:25:27 > 0:25:30It wasn't helped by a grotty bathroom, either,
0:25:30 > 0:25:33and a wholly underwhelming kitchen.
0:25:33 > 0:25:35And just when I was about to give up...
0:25:35 > 0:25:38You should never take this for granted in London,
0:25:38 > 0:25:40because you get your own back garden here.
0:25:40 > 0:25:44This is definitely a bonus, it being on the lower ground floor,
0:25:44 > 0:25:47and you do get direct access straight out here, too,
0:25:47 > 0:25:50as well as a lovely spot to bask in the sunshine
0:25:50 > 0:25:52in our lovely English summers.
0:25:52 > 0:25:54This adds value and desirability -
0:25:54 > 0:25:57definitely a big bonus for this flat.
0:25:57 > 0:26:01Well, plenty of people thought this property was lovely jubbly
0:26:01 > 0:26:07on auction day, with it eventually selling at 314,000.
0:26:09 > 0:26:11Sold, 314.
0:26:11 > 0:26:13The successful bidders were seasoned developer Justin,
0:26:13 > 0:26:17on the right, and his friend and property novice Andy,
0:26:17 > 0:26:19who would be funding the project.
0:26:19 > 0:26:23Unfortunately for Andy, due to a complication,
0:26:23 > 0:26:26they didn't complete in the required 28 days,
0:26:26 > 0:26:31which resulted in him having to pay 20 grand on top of the original
0:26:31 > 0:26:34£314,000 purchase price.
0:26:34 > 0:26:36Not a great start.
0:26:36 > 0:26:38- What's been going on? - Well, unfortunately
0:26:38 > 0:26:42we had some issues with our solicitors,
0:26:42 > 0:26:46and, due to that, we had a notice to complete issued.
0:26:46 > 0:26:49And we found out a day after the notice had expired.
0:26:49 > 0:26:52And, unfortunately, cos it's an auction property,
0:26:52 > 0:26:56we're then into a situation where we had to go back to the seller,
0:26:56 > 0:26:58and they wanted another £20,000.
0:26:58 > 0:27:01Otherwise we forfeit our deposit of 30,000.
0:27:01 > 0:27:03So it was lose 30, pay 20.
0:27:03 > 0:27:04- Oh!- So, nightmare.
0:27:06 > 0:27:08Yes, ouch - a £20,000 nightmare!
0:27:08 > 0:27:12Thanks to those legal shenanigans and red-tape confusion,
0:27:12 > 0:27:17the property ended up costing £334,000.
0:27:17 > 0:27:20But despite some trepidation, the boys weren't put off,
0:27:20 > 0:27:24and, hoping that Justin's experience and their combined skills
0:27:24 > 0:27:28could save them money, they planned to create a high-end apartment
0:27:28 > 0:27:30with a budget of 12,500,
0:27:30 > 0:27:33and within a timescale of six weeks.
0:27:36 > 0:27:38We returned three months later,
0:27:38 > 0:27:41hoping that that bad luck was behind them.
0:27:59 > 0:28:00Modern, slick and bright.
0:28:02 > 0:28:05Kitchen and bathroom - done.
0:28:23 > 0:28:27Well, it's almost unrecognisable from its previous state.
0:28:27 > 0:28:29New flooring throughout,
0:28:29 > 0:28:31re-plastered, re-painted walls,
0:28:31 > 0:28:33and just a general sense of...
0:28:33 > 0:28:35Yeah, well done!
0:28:39 > 0:28:42And we haven't even seen the best bit yet.
0:28:49 > 0:28:53This lovely decked area is the icing on the cake
0:28:53 > 0:28:55of this ideal one-bed flat.
0:28:56 > 0:28:58I just hope for Justin and Andy
0:28:58 > 0:29:02the waters have been a little less choppy than they were at first.
0:29:04 > 0:29:07Overall, we're both very happy, extremely happy with the outcome of the flat.
0:29:07 > 0:29:10I knew what it was going to look like, cos I'd done obviously quite a lot of these,
0:29:10 > 0:29:13and I think Andy is happy now we've come to the end of it
0:29:13 > 0:29:16and he can see the fruition and what's been achieved.
0:29:16 > 0:29:19When you come into this, you know it's going to be hard work.
0:29:19 > 0:29:23But cos you've never done it before, you just don't know how much hard work there's going to be.
0:29:23 > 0:29:26So there have been a lot of early mornings, a lot of very late nights.
0:29:26 > 0:29:29Not much sleep in the last couple of months.
0:29:29 > 0:29:34We've ended up spending exactly what we said we would - £12,500.
0:29:34 > 0:29:37Which, considering what we have done, is incredible.
0:29:37 > 0:29:41But the majority of that is down to
0:29:41 > 0:29:43good sourcing of materials,
0:29:43 > 0:29:46obviously doing most of the work ourselves to keep the cost down,
0:29:46 > 0:29:48because we've got trades and experience.
0:29:48 > 0:29:51And, yeah, it's proven really good,
0:29:51 > 0:29:52and we're very happy.
0:29:53 > 0:29:58This place has been refurbished from top to bottom, inside and out.
0:29:58 > 0:30:01Plus they replaced the gas and water pipes
0:30:01 > 0:30:03as well as a new kitchen and bathroom.
0:30:03 > 0:30:06All for around 12,500.
0:30:06 > 0:30:08Well done, boys.
0:30:10 > 0:30:12What about their ambitious six-week timescale?
0:30:14 > 0:30:17It's taken us about seven weeks to do.
0:30:17 > 0:30:20In total. There were a couple of weeks where we had a pause
0:30:20 > 0:30:22cos Andy went on holiday.
0:30:22 > 0:30:25I went on holiday, as well - I was sick for half a week,
0:30:25 > 0:30:27unfortunately, food poisoning.
0:30:27 > 0:30:30But other than that, we're bang on time,
0:30:30 > 0:30:32bang on schedule, and bang on budget.
0:30:32 > 0:30:35So, overall, happy with everything.
0:30:35 > 0:30:37Yes, and so they should be.
0:30:37 > 0:30:40With people queueing up to view this flat,
0:30:40 > 0:30:42it seems like the ideal time
0:30:42 > 0:30:45to hear the thoughts and opinions of two local estate agents
0:30:45 > 0:30:47on this property that Justin and Andy
0:30:47 > 0:30:51have invested £346,500 in.
0:30:51 > 0:30:55Having had a look at the flat, the changes are very nice, I believe.
0:30:55 > 0:30:56I like the neutral decor.
0:30:56 > 0:30:58I like the flooring that's been placed in
0:30:58 > 0:31:02the kitchen and the bathroom, done to a contemporary standard also.
0:31:02 > 0:31:05My thoughts on the property are, they've made a lot of effort
0:31:05 > 0:31:07in making sure that it's actually nice and bright.
0:31:07 > 0:31:10Being a lower ground floor flat, that can always be an issue
0:31:10 > 0:31:12when coming to try and re-sell or re-rent.
0:31:12 > 0:31:15So you look around and there's still a nice feeling of light,
0:31:15 > 0:31:17which is going to be very important
0:31:17 > 0:31:19when you're looking at lower ground floor.
0:31:19 > 0:31:20Well, the agents are impressed,
0:31:20 > 0:31:23but with several people already interested in the property,
0:31:23 > 0:31:27will their valuations impress Andy and Justin?
0:31:27 > 0:31:28The property, if it were to sell,
0:31:28 > 0:31:30would be somewhere between
0:31:30 > 0:31:33£375,000 to £400,000.
0:31:33 > 0:31:36Looking at the finish, I expect this flat to sell for
0:31:36 > 0:31:38up to £450,000.
0:31:38 > 0:31:40We're definitely going to get
0:31:40 > 0:31:44the 450, or close to 450, certainly.
0:31:44 > 0:31:47With the pair only interested in selling,
0:31:47 > 0:31:49the valuation of 450,000
0:31:49 > 0:31:54would equate to a pre-tax profit of £103,500,
0:31:54 > 0:31:57which isn't too shabby for seven weeks' work.
0:31:57 > 0:32:00So now Andy has one property development project
0:32:00 > 0:32:03under his belt, how is he feeling about it?
0:32:06 > 0:32:09Very difficult, very challenging.
0:32:10 > 0:32:12But it's been great fun, it's been very rewarding.
0:32:12 > 0:32:14And I can't wait to go back to the auction
0:32:14 > 0:32:16and get another one and do it all again.
0:32:21 > 0:32:2420 miles south of Merthyr Tydfil in the Rhondda Valley
0:32:24 > 0:32:26is the small village of Maerdy,
0:32:26 > 0:32:29and with that dusting of snow on the hills,
0:32:29 > 0:32:31it really does look a picture.
0:32:33 > 0:32:36Walking down these streets of terraced houses,
0:32:36 > 0:32:39it's easy to be transported back in time
0:32:39 > 0:32:43to the period in history when this was a thriving mining community.
0:32:43 > 0:32:46So you can imagine almost the men in their flat caps
0:32:46 > 0:32:48heading off to work down the pit.
0:32:48 > 0:32:51They probably would have lived in one of these type houses.
0:32:51 > 0:32:54Mid-terrace, two bedrooms, this one I'm here to see.
0:32:54 > 0:32:56Guide price £26,000.
0:32:56 > 0:32:59Looks all right from the outside. Double glazing. Let's pop in.
0:33:03 > 0:33:05Oh, that's a nice start.
0:33:05 > 0:33:07Often when you walk into these kind of properties,
0:33:07 > 0:33:09you go straight off the road into your front living room,
0:33:09 > 0:33:12and that's obviously not ideal. It's noisy, cold, etc.
0:33:12 > 0:33:14In this case, you've got this little corridor, which is good.
0:33:14 > 0:33:17And your front living room area is there.
0:33:17 > 0:33:19You know, it's not in bad condition.
0:33:19 > 0:33:21Obviously needs a bit of a paint job and tidied up
0:33:21 > 0:33:23and a bit of modernisation, but it's there.
0:33:23 > 0:33:26And then through to a really nice feature at the back of the property.
0:33:26 > 0:33:29It's very open-plan. The moment you walk in here, you go,
0:33:29 > 0:33:30"Oh, that's nice."
0:33:30 > 0:33:33It's a small terrace, but it feels big here.
0:33:35 > 0:33:37Issues with the walls. That's interesting.
0:33:37 > 0:33:39Hm. It's not plaster, actually.
0:33:39 > 0:33:41That looks like it's some kind of cement. Wow.
0:33:41 > 0:33:43OK, one little tip, before you do forget.
0:33:43 > 0:33:46If ever you are going to re-plaster, do remember,
0:33:46 > 0:33:48do all your electrics and your plumbing first
0:33:48 > 0:33:50so you can actually bury it within the plaster,
0:33:50 > 0:33:53rather than stick it on the outside afterwards.
0:33:53 > 0:33:55But it's a nice little sort of living area at the back,
0:33:55 > 0:33:58and then through into the kitchen.
0:33:58 > 0:34:00As I said, it's got this really nice open-plan feel to it.
0:34:00 > 0:34:03Kitchen itself - well, you'd want to spend a bit of time and money
0:34:03 > 0:34:06sorting this out, but it's a nice-sized space.
0:34:06 > 0:34:07Lots of light coming in, which is good.
0:34:07 > 0:34:11And then I would normally expect to find the bathroom at the back there,
0:34:11 > 0:34:15but, actually, that looks like it's just some kind of a utility room,
0:34:15 > 0:34:16which means one of two things.
0:34:16 > 0:34:20A - the property doesn't have a bathroom, which is unlikely.
0:34:20 > 0:34:23Or B - which is a good thing - perhaps the bathroom is upstairs.
0:34:23 > 0:34:25That would be a bonus.
0:34:25 > 0:34:28A-ha, you have to get up early to beat Inspector Roberts'
0:34:28 > 0:34:31sharply-honed deduction skills!
0:34:31 > 0:34:33But am I right?
0:34:35 > 0:34:36Yes, the bathroom.
0:34:36 > 0:34:38However, this isn't ideal, is it?
0:34:38 > 0:34:41Having a boiler just there.
0:34:41 > 0:34:44I mean... Wow. It's a lot of effort,
0:34:44 > 0:34:46but I think it's definitely worth trying to move that.
0:34:46 > 0:34:48But the good news is, it's a decent size.
0:34:48 > 0:34:51Probably converted from what was previously a bedroom,
0:34:51 > 0:34:52so you have sacrificed a bedroom,
0:34:52 > 0:34:55but you've got a nice family-sized bathroom upstairs.
0:34:55 > 0:34:57Yeah, it's probably worth doing.
0:34:59 > 0:35:03The two bedrooms you have got left, thankfully, are a pretty decent size.
0:35:03 > 0:35:04One to the left there,
0:35:04 > 0:35:06even big enough to have a little sink in it.
0:35:06 > 0:35:08And another one to the right.
0:35:08 > 0:35:12Not massive, but, you know, you'd get a double bed in here, I think.
0:35:12 > 0:35:15One thing which is perfectly apparent, of course, is some
0:35:15 > 0:35:18signs of damp on that front wall.
0:35:18 > 0:35:22Also on bits of the ceiling, around that loft hatch access there.
0:35:22 > 0:35:24If you just want to check out the roof, is it coming down,
0:35:24 > 0:35:28is it coming in? Maybe a combination of both. Usual thing.
0:35:28 > 0:35:30Is it the guttering or anything like that? Anyway,
0:35:30 > 0:35:33just sort it out, nothing too much to worry about, I wouldn't say.
0:35:33 > 0:35:36And all in all, it's a solid little house.
0:35:38 > 0:35:41Yes, I do think this house has a lot of positives,
0:35:41 > 0:35:44and it seems lots of room for improvement.
0:35:46 > 0:35:48Well, at the back of the property,
0:35:48 > 0:35:52of course the garden is cut into a fairly steep hill, as is common
0:35:52 > 0:35:55with most of the properties built into the Valleys, not surprisingly.
0:35:55 > 0:35:57But you can also see some potential.
0:35:57 > 0:36:00Look at what some of the other houses in the street have done.
0:36:00 > 0:36:03They've built an extension, a double-storey extension, at the back.
0:36:03 > 0:36:05Our property has only got a single-storey extension,
0:36:05 > 0:36:07so that's something you could contemplate.
0:36:07 > 0:36:11Another bit of good news, and another possibility,
0:36:11 > 0:36:16is the idea of adding a garage, as, again, next door have done.
0:36:16 > 0:36:19Because you've got a lane with vehicle access at the back there.
0:36:19 > 0:36:21So, take down that wall, build a garage here,
0:36:21 > 0:36:25accessed via the lane, sorts out the problem of the parking on the front.
0:36:25 > 0:36:29Actually, coming out here, it gets really interesting, doesn't it?
0:36:29 > 0:36:33It's part of the fascination I have with houses, but sometimes it
0:36:33 > 0:36:36takes a step away to see the full potential.
0:36:36 > 0:36:38# In another way
0:36:38 > 0:36:42# From another point of view
0:36:42 > 0:36:45# Yeah, yeah, yeah... #
0:36:45 > 0:36:47In this case, you get a real sense of how you could make this
0:36:47 > 0:36:50property bigger and better.
0:36:50 > 0:36:52# In another way
0:36:52 > 0:36:55# From another point of view. #
0:36:55 > 0:36:57But would that be worth doing?
0:36:57 > 0:37:01Time for another point of view from a local estate agent.
0:37:01 > 0:37:05Properties in this area tend to have quite a low ceiling, so
0:37:05 > 0:37:10if the new owner was looking to do the renovations themselves, it might
0:37:10 > 0:37:13be cost-effective that way. But if you're going to get a builder in
0:37:13 > 0:37:18to do the work, I'd probably just leave it as a two-bedroom property.
0:37:18 > 0:37:21Interesting. So what type of values are we looking at for a house that
0:37:21 > 0:37:25was guided at £26,000 plus?
0:37:25 > 0:37:28As a two-bedroom property, I would anticipate a rental
0:37:28 > 0:37:31income of £375 per calendar month.
0:37:31 > 0:37:37If I was to market it for sale, I would put it on for £55,000.
0:37:37 > 0:37:40And what would the values be if it was extended?
0:37:40 > 0:37:43If the property was converted into three bedrooms,
0:37:43 > 0:37:46I would market it at £65,000,
0:37:46 > 0:37:51and the rental income would be in the region of £400 per calendar month.
0:37:51 > 0:37:55Those increases aren't huge, so, as an investment,
0:37:55 > 0:37:57the extension probably wouldn't add up.
0:37:58 > 0:38:01Well, I love these traditional terraced properties.
0:38:01 > 0:38:05They're good, solid houses, which make either a really good
0:38:05 > 0:38:10investment or a potentially very appealing family home.
0:38:10 > 0:38:12A bit of work to be done, but nothing too daunting.
0:38:12 > 0:38:15Let's see who took it on when it went under the hammer.
0:38:17 > 0:38:19Two-bedroom, mid-terrace house.
0:38:19 > 0:38:22Start me, will you, I don't know, somewhere near the guide price?
0:38:22 > 0:38:2525, will you? Make it 20, then, just to get me started, please.
0:38:25 > 0:38:28£20,000, somebody. Thank you, got you at 20. 21 can I see now?
0:38:28 > 0:38:31Thank you, 21 by the side. 21. 22.
0:38:31 > 0:38:3523. 23. 24. 25.
0:38:35 > 0:38:3725, back to you. 25.
0:38:37 > 0:38:3926. 27.
0:38:39 > 0:38:4227. And eight. 27.5, then.
0:38:42 > 0:38:4527.5. 28. 28.5.
0:38:45 > 0:38:50With the bids picking up pace, we leave and rejoin at £31,500.
0:38:50 > 0:38:5231.5.
0:38:52 > 0:38:5531,750. 31,750.
0:38:55 > 0:38:5832, sir. 32. 32,250.
0:38:58 > 0:39:0232,250. 32.5. 32.5.
0:39:02 > 0:39:0432,750.
0:39:04 > 0:39:08I've got 32,500 with you, sir, for the first time.
0:39:08 > 0:39:12Second time, third and last time. At 32,500.
0:39:12 > 0:39:16Well done, sir, it is all yours, your number, please.
0:39:16 > 0:39:18Number 52, thank you very much.
0:39:18 > 0:39:21So, after quite a battle, the two-bed house in Maerdy,
0:39:21 > 0:39:25South Wales was bought by Owen and his brother Geraint.
0:39:26 > 0:39:30I met up with Owen back at their new property to find out their plans.
0:39:34 > 0:39:37- Owen, good to meet you.- Nice to meet you, too.- Congratulations.
0:39:37 > 0:39:40- Thank you very much.- Tell me why you wanted to buy this place.
0:39:40 > 0:39:43Erm, well, a couple of reasons, really. One was affordability,
0:39:43 > 0:39:47because we had a tight budget of sort of 30, 35,000, which this was.
0:39:47 > 0:39:49And the other one was a lack of major problems.
0:39:49 > 0:39:51We've bought property before.
0:39:51 > 0:39:56It was actually this time last year, and we still have issues with water coming in the roof and things.
0:39:56 > 0:39:57- Oh, no.- Yes.
0:39:57 > 0:40:00So we fixed it last year, thought it was fine,
0:40:00 > 0:40:02- weather has come in and it has gone again.- Oh, no.
0:40:02 > 0:40:05So this place, luckily, it was nice and wet when we looked around.
0:40:05 > 0:40:09There are a few issues with damp, but in this age of property, you'd expect that.
0:40:09 > 0:40:12- Other than that, it looks pretty sound.- You say it was damp when you came around.
0:40:12 > 0:40:15Sometimes it actually works very well to visit a property
0:40:15 > 0:40:17- when it is raining, isn't it? - It was hammering down.
0:40:17 > 0:40:20- It was a Welsh winter.- Was it? - It was properly wet, yeah.
0:40:20 > 0:40:22So are you doing this on your own, or...
0:40:22 > 0:40:24No, it is kind of a family affair, really, because I am doing the
0:40:24 > 0:40:27sort of organisational, financial type things in the background.
0:40:27 > 0:40:30Then my brother is doing more of a hands-on-type work on the ground.
0:40:30 > 0:40:33- Is he a builder?- He's not a builder. We are both kind of...
0:40:33 > 0:40:36- We are OK at trying our hands at things.- What do you do?
0:40:36 > 0:40:40- I'm a psychiatrist.- Oh, wow.- Yeah, nothing...
0:40:40 > 0:40:43nothing I can relate to this at all, unfortunately.
0:40:43 > 0:40:45But I watched some YouTube videos previously
0:40:45 > 0:40:47and learnt how to put a kitchen in,
0:40:47 > 0:40:50- and that's how I installed a kitchen in the last house.- Right.
0:40:50 > 0:40:54So we are quite hands-on, but things like the plastering
0:40:54 > 0:40:56and the plumbing and things we leave to professionals.
0:40:56 > 0:40:59- They're the kind of things you don't want to mess about with, I don't think.- No.
0:40:59 > 0:41:03- But, financially, it is between you and your brother?- Yes, that's right. - Oh, that's nice.- Yeah.
0:41:03 > 0:41:07Although the financial burden might be between Owen and his brother
0:41:07 > 0:41:11Geraint, they also hope to get some help from their parents.
0:41:11 > 0:41:16But having analysed the house, what is his overall assessment of it?
0:41:16 > 0:41:21There is some potential. Like I say, there's not huge problems.
0:41:21 > 0:41:24Somebody has already taken the time to put the bathroom upstairs,
0:41:24 > 0:41:28- which has saved us doing it, obviously.- You're talking about the bathroom upstairs.
0:41:28 > 0:41:29That was at the expense of a bedroom.
0:41:29 > 0:41:32- Did that bother you or not? - Not really.
0:41:32 > 0:41:36There's possibilities of extending, depending on finances.
0:41:36 > 0:41:38What, a double-story extension at the back?
0:41:38 > 0:41:41Yes, maybe above the kitchen, possibly up into the attic.
0:41:41 > 0:41:44There are some houses on the streets that have done both of those
0:41:44 > 0:41:46things, so planning permission should be OK.
0:41:46 > 0:41:48But we probably won't have the finances to do it.
0:41:48 > 0:41:52But having said that, two bedrooms around this area is fine anyway,
0:41:52 > 0:41:55and it is better to have the bathroom upstairs, I think.
0:41:55 > 0:41:58The downstairs is quite sweet, isn't it? Are you going to keep that pretty much as it is?
0:41:58 > 0:42:03- We are probably going to open up the front two rooms a bit. - The wall here?
0:42:03 > 0:42:05The wall there, yeah. Because the back room is a little bit dark.
0:42:05 > 0:42:08So that will get the light flooding in from the front room.
0:42:08 > 0:42:12- We've done that previously. - So this will be one huge open-plan downstairs.
0:42:12 > 0:42:15- One huge open-plan downstairs. - That'll be great.- It will be very nice. Hopefully.
0:42:15 > 0:42:17And in terms of budget?
0:42:17 > 0:42:22The budget is going to be about 17 to 18,000, if we extend.
0:42:22 > 0:42:25- If we don't extend, we are probably looking at more the ten mark.- Right.
0:42:25 > 0:42:28So that's where we need to look at how much the extension would cost.
0:42:30 > 0:42:32Owen hopes to get it refurbished in three to four months,
0:42:32 > 0:42:35and they planned this as a rental property,
0:42:35 > 0:42:39to be part of his and his brother's property portfolio.
0:42:39 > 0:42:42But how many houses do the brothers have?
0:42:42 > 0:42:45- We just planned on one initially. This is now the third.- Oh, right.
0:42:45 > 0:42:49The other two are not rented out yet. But, yes, possibly.
0:42:49 > 0:42:53- So when did you buy the other ones? - First one was this time last year, and...
0:42:53 > 0:42:57- Ah! Stop. This time last year?- Yes. - And you bought it to rent out?
0:42:57 > 0:43:00It was rented out and then we've had the roof problems.
0:43:00 > 0:43:02So the people have moved out. So this is the issue at the moment.
0:43:02 > 0:43:05- So it is costing you money. - It is costing money.
0:43:05 > 0:43:08And the second one has just gone on the market this week, and we've had a lot of interest.
0:43:08 > 0:43:12Hopefully, within a month or so, the other two will be rented out.
0:43:12 > 0:43:16So this is property number three. Any aspirations for many more?
0:43:16 > 0:43:18At the moment...
0:43:18 > 0:43:22A fourth would be nice, and then I'm sure when we get the fourth, a fifth would be nice.
0:43:22 > 0:43:25So we've not really put a cap on it, or we've not really said
0:43:25 > 0:43:28we'd be disappointed if we only get a certain amount. It is just kind of...
0:43:28 > 0:43:30It is a side thing, we take it as it goes, really.
0:43:30 > 0:43:33- Well, listen, congratulations. Good luck with it.- Thank you very much.
0:43:33 > 0:43:36- Look forward to seeing how you get on.- All right, take care.
0:43:36 > 0:43:39Well, Owen and his brother discovering that things don't
0:43:39 > 0:43:42always go to plan in the world of property.
0:43:42 > 0:43:44Three projects on the go.
0:43:44 > 0:43:46How will they get on with this one?
0:43:46 > 0:43:48Will it be easy enough to get it sorted out?
0:43:48 > 0:43:51You can find out later in the show.
0:43:54 > 0:43:57We've seen how one of the properties has turned out, but what about the other two?
0:43:57 > 0:44:00Yes, it's been a while since we've visited, so there might be a few surprises.
0:44:00 > 0:44:03- What do you think? - Well, let's go back and find out.
0:44:06 > 0:44:09Back now to the Salford suburb of Cadishead.
0:44:09 > 0:44:13It was in this popular commuter belt that I first had a look around this
0:44:13 > 0:44:16two-bed mid-terrace house that was guided at £50,000 plus.
0:44:18 > 0:44:20It looked in pretty good shape at first,
0:44:20 > 0:44:23but it wasn't long before I had to watch my step.
0:44:25 > 0:44:28Oh, dear, that is very dodgy.
0:44:28 > 0:44:30That bottom step there has just collapsed.
0:44:30 > 0:44:33That would need to be sorted as soon as possible.
0:44:33 > 0:44:35I don't like that at all.
0:44:35 > 0:44:38# You'd better watch your step... #
0:44:38 > 0:44:41No, it wasn't because I've eaten too many pies since retiring.
0:44:41 > 0:44:46That sunken step may well be a sign of the dreaded rising damp.
0:44:46 > 0:44:50More signs of damp upstairs showed this house had been unloved
0:44:50 > 0:44:52and unlived in for some time.
0:44:55 > 0:44:57Thankfully, help was on the way.
0:44:57 > 0:45:00With several people interested on auction day,
0:45:00 > 0:45:04the property eventually sold for £64,000.
0:45:05 > 0:45:07Well done, sir.
0:45:07 > 0:45:10The successful buyer was budding property developer Andrew,
0:45:10 > 0:45:13who was unfazed by the property's condition,
0:45:13 > 0:45:15and could see plenty of room for improvement.
0:45:17 > 0:45:20So tell us a bit more in depth. What you are going to do?
0:45:20 > 0:45:23Are you knocking down walls, are you... What have you got in mind?
0:45:23 > 0:45:27Well, upstairs, there's quite a big bathroom at the moment.
0:45:27 > 0:45:28Originally there would have been a small
0:45:28 > 0:45:32bedroom at the back of the property, so I'm planning on reinstating
0:45:32 > 0:45:35that partition in and putting that small room back in.
0:45:35 > 0:45:39It will still be big enough to have a full-size bath, full-size sink.
0:45:39 > 0:45:41It'll be a good enough size for the house.
0:45:41 > 0:45:44And then there will be a small box room, as well.
0:45:44 > 0:45:47Andrew was planning on renting the property once complete,
0:45:47 > 0:45:50so adding a third bedroom made sense.
0:45:50 > 0:45:54But would it be big enough, and, not to mention, cost-effective?
0:45:54 > 0:45:56He planned to get all the work done here within
0:45:56 > 0:46:01a budget of £10-£15,000 and a tight timescale of thee to four months.
0:46:06 > 0:46:10We've returned six months later to see how Andrew has got on.
0:46:28 > 0:46:30Very nice.
0:46:30 > 0:46:33The downstairs is looking much fresher, cleaner and brighter.
0:46:33 > 0:46:36And if it looks like it was just a spot of replastering
0:46:36 > 0:46:40and a lick of paint, you couldn't be more wrong.
0:46:40 > 0:46:42One of the major problems of the property was there was very
0:46:42 > 0:46:45bad rot to the floors on the ground floor.
0:46:45 > 0:46:48You can see from this piece here, there's woodworm,
0:46:48 > 0:46:52there's dry rot, there's wet rot, so there's the whole full spectrum
0:46:52 > 0:46:56of, you know, damp damage to the timber.
0:46:56 > 0:46:59I knew when I purchased the property that the floors were rotten.
0:46:59 > 0:47:02As you went to the corners of the room, there was
0:47:02 > 0:47:05a lot of movement and it was obvious the joists were rotten.
0:47:05 > 0:47:09So we totally ripped out all the joists, all the flooring.
0:47:09 > 0:47:12We renewed everything, and now the floor is all brand-new
0:47:12 > 0:47:16and it should be good for another 100 years.
0:47:16 > 0:47:20Well, it would have been a big, dirty job, but it's really well done.
0:47:21 > 0:47:22And as we head upstairs,
0:47:22 > 0:47:25there's something else in this house that is brand-new.
0:47:32 > 0:47:35Yes, that big bathroom was split,
0:47:35 > 0:47:38and this former two-bed house is now a three-bed.
0:47:38 > 0:47:39Nice one, Andrew.
0:47:58 > 0:48:02The back is also vastly improved, with new fencing
0:48:02 > 0:48:05and a freshly rendered and weather-protected outside wall.
0:48:07 > 0:48:11For me, this property really has had its potential realised.
0:48:13 > 0:48:17The property has had a complete renovation.
0:48:17 > 0:48:20It's had full uPVC double glazing installed.
0:48:20 > 0:48:25It's had a full damp-proof course installed on it.
0:48:25 > 0:48:28All new carpets on the stairs and landing and bedrooms upstairs.
0:48:28 > 0:48:30The rear of the property has been reroofed,
0:48:30 > 0:48:31I've landscaped the rear garden.
0:48:31 > 0:48:34Gas, central heating has been replaced, all the pipework,
0:48:34 > 0:48:37all the water pipework has been replaced.
0:48:37 > 0:48:40The kitchen has been fully renovated.
0:48:40 > 0:48:43We only really saved the existing units,
0:48:43 > 0:48:46so new tiling, new counter tops, new appliances.
0:48:46 > 0:48:49The property has been redecorated entirely.
0:48:49 > 0:48:52There was a number of reasons that the property had such bad damp.
0:48:52 > 0:48:56One of the main reasons was that they had filled in an air
0:48:56 > 0:48:59brick under the hallway, at the front of the property,
0:48:59 > 0:49:01they had built a step over it.
0:49:01 > 0:49:04There were also not enough air bricks when the property was
0:49:04 > 0:49:08built, so we increased the number of air bricks and we removed the step.
0:49:08 > 0:49:13And that will greatly improve the airflow under the floor.
0:49:13 > 0:49:16Air bricks are essential for keeping a house well ventilated
0:49:16 > 0:49:21and damp free, so make sure none are blocked up in your house.
0:49:21 > 0:49:24Because Andrew replaced all the windows here,
0:49:24 > 0:49:26as well as the roof at the rear,
0:49:26 > 0:49:29he ended up spending around £21,000,
0:49:29 > 0:49:32but I do think it is money well spent.
0:49:32 > 0:49:34And he did manage to get it done in four months, which is
0:49:34 > 0:49:36a pretty fast turnaround.
0:49:40 > 0:49:44Including purchase price, Andrew has invested £85,000 here,
0:49:44 > 0:49:47and the good news is that he managed to find a tenant
0:49:47 > 0:49:51within 24 hours of putting it on the market. But did he get a good price?
0:49:51 > 0:49:54And did adding a third bedroom increase the value?
0:49:56 > 0:49:59We've asked two local estate agents along for their opinions.
0:50:01 > 0:50:05What I do like about the property is the fact that it's got a really
0:50:05 > 0:50:08good appearance with the kitchen, a well-designed kitchen, bathroom.
0:50:08 > 0:50:12- They are what sell a property.- The third bedroom is a really good idea.
0:50:12 > 0:50:15It is going to add significant value to the property,
0:50:15 > 0:50:18somewhere in the region of £10,000. So a great move.
0:50:20 > 0:50:23With that in mind, then, let's hear the sales valuations.
0:50:23 > 0:50:28If I put this property onto the market, I'd expect it to sell for £85,000.
0:50:28 > 0:50:32I think as a sale property, you are probably looking around £100,000.
0:50:32 > 0:50:37Between 85 and 100,000 sounds about right. 85,000 is low.
0:50:37 > 0:50:38HE LAUGHS
0:50:38 > 0:50:40You wouldn't find one like this here.
0:50:40 > 0:50:43Well, if he did sell for £100,000, it would
0:50:43 > 0:50:46have mean a pre-tax profit of 15 grand.
0:50:46 > 0:50:48But it's always been the rental market that Andrew has been
0:50:48 > 0:50:50interested in.
0:50:50 > 0:50:54I think as a rental property, you'd be looking somewhere around
0:50:54 > 0:50:58£495 to £525 per calendar month.
0:50:58 > 0:51:02For rent, I would expect this to achieve £550 per calendar month.
0:51:02 > 0:51:06I think on the rental values, it's about right.
0:51:06 > 0:51:09I rented it out straight away for £550 a month,
0:51:09 > 0:51:12pretty much the first person to view it took it, so...
0:51:12 > 0:51:15it's about right.
0:51:15 > 0:51:20Renting for £550 per calendar month means that Andrew will make
0:51:20 > 0:51:24a yield of over 7.5% and, having already rented the property out,
0:51:24 > 0:51:28there's no doubt this project has been a success.
0:51:36 > 0:51:40It was in the snow-dusted South Wales
0:51:40 > 0:51:43village of Maerdy that we came across a traditional two-bed
0:51:43 > 0:51:45mid-terraced house that seemed pretty solid,
0:51:45 > 0:51:49both structurally and as a potential rental investment.
0:51:49 > 0:51:52Yes, it needed work, and there were signs of damp.
0:51:52 > 0:51:55Though there was a bathroom upstairs,
0:51:55 > 0:51:58it was at the expense of what would have been a third bedroom,
0:51:58 > 0:52:01leaving just the two bedrooms.
0:52:01 > 0:52:04But with space to the rear to extend if you wished,
0:52:04 > 0:52:06this house had a lot to offer.
0:52:09 > 0:52:14With all that in mind, it was bought for £32,500 by psychiatrist Owen
0:52:14 > 0:52:17as a joint project with his brother Geraint,
0:52:17 > 0:52:19as part of a growing rental portfolio.
0:52:21 > 0:52:25- This is now the third.- Oh, right. - The other two aren't rented out yet.
0:52:25 > 0:52:27So, when did you buy the other ones?
0:52:27 > 0:52:31- First one was this time last year and...- Stop. This time last year?
0:52:31 > 0:52:33- Yeah.- And you bought it to rent out?
0:52:33 > 0:52:35Well, it was rented out and then we had a roof problem,
0:52:35 > 0:52:39- so they've moved out. This is the issue.- Oh. So it's costing you money?- It is costing money.
0:52:39 > 0:52:44- And the second one has just gone on the market this week and we've had a lot of interest.- Right.
0:52:44 > 0:52:47So, hopefully, within a month or so, the other two will be rented out.
0:52:47 > 0:52:51And with neither of the brothers having building backgrounds,
0:52:51 > 0:52:54it was a constant learning curve for them both.
0:52:54 > 0:52:56# Hey, brother
0:52:56 > 0:53:02# There's an endless road to rediscover... #
0:53:02 > 0:53:04And for this latest voyage of discovery,
0:53:04 > 0:53:08they had set a budget of up to £18,000, if they decided to add
0:53:08 > 0:53:13an extension, and given themselves a three to four month timescale.
0:53:13 > 0:53:16And they were really hoping it would be third time lucky.
0:53:20 > 0:53:25Six months later, we're back, and winter has turned to summer.
0:53:25 > 0:53:29The new door suggests progress, but how much progress?
0:53:35 > 0:53:38Wow! That's impressive!
0:53:38 > 0:53:41It really integrates the two rooms together
0:53:41 > 0:53:43and gives a much better flow to the house.
0:53:43 > 0:53:47And they've boxed up under the stairs to create some useful
0:53:47 > 0:53:49cupboard space.
0:53:49 > 0:53:52We've put in a brand-new kitchen.
0:53:52 > 0:53:58I like it! This is fantastic and that touch of colour just lifts it.
0:53:58 > 0:54:01Then, upstairs, we've put a new bathroom in.
0:54:05 > 0:54:07By turning the bath 90 degrees,
0:54:07 > 0:54:11they've made the bathroom feel much more balanced.
0:54:12 > 0:54:16And the two bedrooms are now spick and span.
0:54:16 > 0:54:20It's all looking good, Owen, and trouble free?
0:54:20 > 0:54:24It wasn't anywhere near as straightforward as we'd hoped, no.
0:54:24 > 0:54:28There was a lot more damage to the plaster than we thought there would be, once the wallpaper came off.
0:54:28 > 0:54:32So pretty much every single room needed to be replastered completely and there was a bit
0:54:32 > 0:54:37of a leak with the roof outside. We had to have a new roof put on that side, as well.
0:54:37 > 0:54:40So, there were a few issues we weren't expecting.
0:54:42 > 0:54:45# Oh, trouble, trouble, trouble... #
0:54:45 > 0:54:49So, underneath that layer of snow, there was a leaking roof.
0:54:49 > 0:54:52Perhaps the house wasn't as solid as it seemed.
0:54:52 > 0:54:56Why is it never straightforward? So, who sorted it out for them?
0:54:56 > 0:54:58# Trouble, trouble, trouble. #
0:54:58 > 0:55:01So, most of the work was done by builders.
0:55:01 > 0:55:05They came in to do the construction work, knocking down the walls and the re-plastering.
0:55:05 > 0:55:07Then myself and my brother fitted the kitchen ourselves
0:55:07 > 0:55:11and most of the other decoration work was done by my brother,
0:55:11 > 0:55:13with the help of our parents.
0:55:13 > 0:55:16And this teamwork seems to have paid off.
0:55:16 > 0:55:19The plan was always to try to get tenants in to this property,
0:55:19 > 0:55:22and we actually got tenants in within a week of it
0:55:22 > 0:55:24being on the market and they moved in a few days ago.
0:55:24 > 0:55:27And not only have they sourced a tenant for this one, but
0:55:27 > 0:55:30they've at last found tenants for their other two properties, as well.
0:55:30 > 0:55:34# Whoa, boy, that's good news
0:55:34 > 0:55:37# Whoa, boy, that's good news... #
0:55:37 > 0:55:40But is it good news about their budget?
0:55:40 > 0:55:43We were hoping to spend around 10,000 on the property,
0:55:43 > 0:55:46but we'd budgeted for having between 15 and 19,000.
0:55:46 > 0:55:50With all the extra work, like I said, with the plastering
0:55:50 > 0:55:54and the new roof, it came to just under £15,000.
0:55:54 > 0:55:59A £15,000 spend on top of their £32,500 purchase price takes
0:55:59 > 0:56:04Owen and his brother Geraint's total spend to £47,500.
0:56:04 > 0:56:08But has this been money well spent by the siblings?
0:56:08 > 0:56:13What do two local property experts think?
0:56:13 > 0:56:16The property's been renovated to a really high standard.
0:56:16 > 0:56:20They've opened up the lounge/diner to give that nice open living space.
0:56:20 > 0:56:24Two good-size bedrooms upstairs, as well, and a modern family bathroom.
0:56:24 > 0:56:27The standard of finish overall is very good.
0:56:27 > 0:56:31He's got a very good specification bathroom and the kitchen is
0:56:31 > 0:56:35a lot better than you would normally find in a tenanted property.
0:56:35 > 0:56:39This property was bought as a buy to let, but they plan to
0:56:39 > 0:56:43remortgage the house, so its current market value is important.
0:56:43 > 0:56:48If I was to put the property on the market for sale,
0:56:48 > 0:56:52I would market it at £65,000, with a view to achieving around £60,000.
0:56:52 > 0:56:55If I was to be marketing this property, I would be putting
0:56:55 > 0:56:59on the market from £65,000 to achieve around £60,000.
0:56:59 > 0:57:02That's actually a little bit higher than we were expecting.
0:57:02 > 0:57:05We've only spent about 47,500 on the property.
0:57:05 > 0:57:08But, still, I think it wouldn't be enough of a profit to go
0:57:08 > 0:57:11away from renting the property out, which is what we planned originally.
0:57:11 > 0:57:16So, Owen wasn't really tempted by a potential pre-tax profit of £12,500.
0:57:16 > 0:57:19They have got a tenant, after all.
0:57:19 > 0:57:23But are they getting the current market rate for this two-bed house?
0:57:23 > 0:57:26If I was to put this property on the market for rental purposes,
0:57:26 > 0:57:29I would ask for £400 per calendar month.
0:57:29 > 0:57:32I think if you're going to put this property on the rental market
0:57:32 > 0:57:35now, you'd be looking to achieve around £400 per calendar month.
0:57:35 > 0:57:38Yeah, that's exactly what we were expecting.
0:57:38 > 0:57:42We're rented the property out for £400 per calendar month and I had to actually turn a few
0:57:42 > 0:57:44people away, as well. So that seems about right.
0:57:44 > 0:57:47£400 per calendar month would generate a healthy
0:57:47 > 0:57:51yield of around 10%, so is that encouragement enough to push on?
0:57:51 > 0:57:55Actually, we're already doing this again because we're raising
0:57:55 > 0:57:58money on this property to now buy our next property.
0:57:58 > 0:58:02Our offer's been accepted on the new house, paperwork's going through as we speak.
0:58:05 > 0:58:08It's not easy, this property-developing lark!
0:58:08 > 0:58:11And we have seen a lot of hard work on today's show.
0:58:11 > 0:58:14Yeah, buyers are lining up at the auctions to do more.
0:58:14 > 0:58:18Yeah, come and meet more of them here on Homes Under The Hammer.