0:00:02 > 0:00:04Now, one thing we all love when travelling around the country
0:00:04 > 0:00:07is that every single property has a different story to tell.
0:00:07 > 0:00:09Yeah, and if you know what the story is within your area
0:00:09 > 0:00:11regarding property, it's a great start.
0:00:11 > 0:00:16Yes, and getting local knowledge can really make all the difference.
0:00:16 > 0:00:19And then, head down to your local property auction.
0:00:45 > 0:00:48Once you've decided to buy a property at auction, go and see it.
0:00:48 > 0:00:52Then, read the legal pack and then, do the rest of your research.
0:00:52 > 0:00:54Let's hope that's what today's buyers did.
0:00:54 > 0:00:57Shall we have a look and see what they went for?
0:00:58 > 0:01:02In a Staffordshire house, I'm really pleased about a room I can't see.
0:01:02 > 0:01:06Which is great news cos it means, hopefully, it's upstairs.
0:01:08 > 0:01:13Whereas in a South London flat, it's what I can see that excites me.
0:01:13 > 0:01:15Just above the tree tops...
0:01:15 > 0:01:16I can see the London Eye.
0:01:18 > 0:01:22But in a Derby house, I really think you can see too much.
0:01:22 > 0:01:23If you can still see me...
0:01:26 > 0:01:29..you're going to need to change these doors.
0:01:29 > 0:01:31All these properties have been sold at auction,
0:01:31 > 0:01:34we'll find out who bought them and what they paid for them
0:01:34 > 0:01:36when they went under the hammer.
0:01:36 > 0:01:37It's yours, sir. Well done.
0:01:40 > 0:01:44I'm in Staffordshire and west of Newcastle-under-Lyme
0:01:44 > 0:01:46in the suburban town of Silverdale.
0:01:46 > 0:01:49It's a very short distance from Keele University
0:01:49 > 0:01:52and as you'll know if you're a regular viewer,
0:01:52 > 0:01:55proximity to a university can be ideal territory
0:01:55 > 0:01:56for property investment.
0:01:58 > 0:02:01Walking down the street, you really feel like you're part
0:02:01 > 0:02:03of Britain's industrial heritage.
0:02:03 > 0:02:08Classic houses built for the workers in this part of the country.
0:02:08 > 0:02:11And they are good, solid homes. I love the brickwork, for a start.
0:02:11 > 0:02:13This is the one I'm here to see.
0:02:13 > 0:02:16£55,000+ was the guide price.
0:02:16 > 0:02:18End-terrace, three bedrooms. In we go.
0:02:20 > 0:02:23Ooh. Nice bit of original tilework on the floor there, which is good.
0:02:23 > 0:02:26Oh, and an original door here as well.
0:02:26 > 0:02:29You know, I just see a door like that and I think, "Strip it back."
0:02:29 > 0:02:31Get it dip-stripped or whatever
0:02:31 > 0:02:34and, you know, under there there's a lovely old pine or whatever.
0:02:34 > 0:02:37That'd be such a lovely, warm feature to have just there.
0:02:37 > 0:02:39Talking of warm, good news.
0:02:39 > 0:02:42Looks like we've got some kind of central heating.
0:02:42 > 0:02:44Old radiator, that probably means the rest of it needs
0:02:44 > 0:02:46to be checked out, but you know, not bad.
0:02:46 > 0:02:48The stairs up to your bedroom there.
0:02:48 > 0:02:50Small, sort of front sitting room,
0:02:50 > 0:02:53which looks like it's been laid out to be a bedroom there.
0:02:53 > 0:02:58And then moving on through the property to a rear living room.
0:02:58 > 0:03:02I like the brickwork being carried on under the fireplace there
0:03:02 > 0:03:04and the nice doors out to the garden.
0:03:04 > 0:03:06And then through to what would have originally been,
0:03:06 > 0:03:08I guess, where the end of the house would have been,
0:03:08 > 0:03:11some kind of extension built on housing a kitchen.
0:03:11 > 0:03:14Now, the good news is the kitchen is really nice.
0:03:14 > 0:03:17It's a kitchen/living area. I like the Belfast sink.
0:03:17 > 0:03:19It's got a nice feel to it in here.
0:03:19 > 0:03:23And so far, I haven't discovered the bathroom and toilet,
0:03:23 > 0:03:28which is great news cos it means, hopefully, it's upstairs.
0:03:28 > 0:03:31The layout suggests that this place has been let out
0:03:31 > 0:03:32to students previously.
0:03:32 > 0:03:36It is, after all, only a few miles away from the university
0:03:36 > 0:03:38and letting a house on a room-by-room basis
0:03:38 > 0:03:40can be very lucrative.
0:03:40 > 0:03:44But do remember, you have to factor in any safety regulations
0:03:44 > 0:03:45your local authorities set.
0:03:47 > 0:03:49Well, upstairs and at the back of the house,
0:03:49 > 0:03:51a large double bedroom there
0:03:51 > 0:03:53and then joy of joys, look at this.
0:03:53 > 0:03:58A really nice-sized family bathroom with a bath and a separate shower.
0:03:58 > 0:04:00It's not in the best of conditions, but you know what,
0:04:00 > 0:04:06it is at least exactly where it should be, which is here upstairs.
0:04:06 > 0:04:09# In my place, in my place... #
0:04:09 > 0:04:13Yes, a good-sized bathroom is always an asset.
0:04:13 > 0:04:16Plus, the double room at the back here is a great size,
0:04:16 > 0:04:20although the same can't be said for all the bedrooms.
0:04:20 > 0:04:22Well, at the front of the property upstairs,
0:04:22 > 0:04:25there would have originally been one bedroom,
0:04:25 > 0:04:28but to cater for the student market
0:04:28 > 0:04:31and to increase the number of bedrooms in the property,
0:04:31 > 0:04:34this one bedroom has been divided into two -
0:04:34 > 0:04:36one on this side
0:04:36 > 0:04:38and another one here.
0:04:38 > 0:04:39And as you can see,
0:04:39 > 0:04:42they've achieved that, really, just by splitting down through the window
0:04:42 > 0:04:44at the front.
0:04:44 > 0:04:47A bit small, but you know what? It sort of works.
0:04:48 > 0:04:50These rooms are very small,
0:04:50 > 0:04:55but there's a decent shared area downstairs in that dining kitchen.
0:04:55 > 0:04:59There is some outside space too - a little courtyard.
0:04:59 > 0:05:02It does need some work, but I think this could be a very good investment
0:05:02 > 0:05:05if you've got it for anything like
0:05:05 > 0:05:07that £55,000 guide price.
0:05:07 > 0:05:11We asked an agent from the auction house who sold it what he thought.
0:05:11 > 0:05:14The property is a bit tired.
0:05:14 > 0:05:16It's previously been used for student accommodation
0:05:16 > 0:05:18and that shows. And it lends itself
0:05:18 > 0:05:20well to student accommodation
0:05:20 > 0:05:23given the proximity to Keele University.
0:05:23 > 0:05:28It would also lend itself well to private rental as well as resale.
0:05:28 > 0:05:32So there's options here, but it does look like rental of some kind
0:05:32 > 0:05:33is the most likely.
0:05:33 > 0:05:37So, let's hear those rental valuations.
0:05:37 > 0:05:40On the private rental market, this property would achieve
0:05:40 > 0:05:43somewhere in the region of £450 per calendar month.
0:05:43 > 0:05:46Though, if you were to rent it out to students,
0:05:46 > 0:05:48I'd be expecting to achieve somewhere in the region
0:05:48 > 0:05:50of £8,000 per year.
0:05:50 > 0:05:53Either way, you'd be commanding pretty impressive yields
0:05:53 > 0:05:58if it were bought for anything like the guide price of 55,000.
0:05:58 > 0:06:00But what about the resale valuation?
0:06:01 > 0:06:03Should the property be modernised
0:06:03 > 0:06:05and brought up to a reasonable standard,
0:06:05 > 0:06:07I'd expect to place this property on the market
0:06:07 > 0:06:10somewhere in the region of £85,000.
0:06:11 > 0:06:13So, a bit of a quandary with this one.
0:06:13 > 0:06:17How much work do you actually do to get it up to scratch?
0:06:17 > 0:06:19Whatever, I think it's a really good investment,
0:06:19 > 0:06:22particularly as a possible student let.
0:06:22 > 0:06:24Let's see who agreed when it went under the hammer.
0:06:28 > 0:06:30It's a spacious end-terrace house.
0:06:30 > 0:06:32It's three bedrooms, two reception rooms
0:06:32 > 0:06:35and it's in a convenient location.
0:06:35 > 0:06:36Guiding at 55.
0:06:36 > 0:06:40Going to say 50 to start. 50 bid. Thank you. At £50,000.
0:06:40 > 0:06:44Going twos on this. Bid is at 50,000. 52.
0:06:44 > 0:06:4754? 54. 56.
0:06:47 > 0:06:49I'll take ones now, if it helps.
0:06:49 > 0:06:53You are in at 57. 58.
0:06:53 > 0:06:57New bidder, 59,000. At 59,000.
0:06:57 > 0:06:5960?
0:06:59 > 0:07:00No, 59. 60.
0:07:02 > 0:07:0560,500. 61? 61.
0:07:05 > 0:07:0761,500.
0:07:07 > 0:07:0862?
0:07:08 > 0:07:13No. At £61,500 and standing left, no mistakes.
0:07:13 > 0:07:15I'm selling it then at 61,500.
0:07:15 > 0:07:18Another 500 anywhere else?
0:07:18 > 0:07:20If not, 61,500, once.
0:07:20 > 0:07:2261,500, twice.
0:07:22 > 0:07:24Third and final time at 61,500.
0:07:24 > 0:07:27- HAMMER BANGS - Your lot, sir. Well done.
0:07:31 > 0:07:36After a stop-start auction, the winning bid of this 61,500
0:07:36 > 0:07:38belong to local man Ian.
0:07:38 > 0:07:42Software engineer Ian has only recently started dipping his toe
0:07:42 > 0:07:44into property developing.
0:07:44 > 0:07:48So, I'm interested to hear what he has planned.
0:07:48 > 0:07:51- Ian, good to meet you.- And you. - Congratulations.
0:07:51 > 0:07:53- Thank you very much.- Tell me why you wanted to buy this house.
0:07:53 > 0:07:57Well, I'd seen it in the e-mails that I was getting from the agent
0:07:57 > 0:08:00and it looked interesting straightaway.
0:08:00 > 0:08:02I could see it was a three-bed,
0:08:02 > 0:08:04Italian upstairs bathroom.
0:08:04 > 0:08:07It's in quite a good location here in Silverdale,
0:08:07 > 0:08:11so, yeah, I was interested in it straightaway.
0:08:11 > 0:08:13With a view to what? Buying it for what reason?
0:08:13 > 0:08:16Well, I could tell it probably needed some renovation,
0:08:16 > 0:08:21work doing, so I wasn't totally sure what to do with it at first.
0:08:21 > 0:08:23But I knew there were, obviously, options
0:08:23 > 0:08:26to get it renovated at first.
0:08:26 > 0:08:29And then either see what...
0:08:29 > 0:08:33letting yield it would give me or if the valuation was good,
0:08:33 > 0:08:36- sell it on for... - A bit of a profit.- Yeah, a little...
0:08:36 > 0:08:38hopefully, a little bit of a profit, yeah.
0:08:38 > 0:08:40So, what about visiting the property?
0:08:40 > 0:08:44Well, I hadn't actually been inside the property before the auction.
0:08:44 > 0:08:46- Tut-tut.- Well...
0:08:46 > 0:08:49I was very just...very limited on time, really.
0:08:49 > 0:08:51So I just couldn't get to the viewings,
0:08:51 > 0:08:56- but a couple of friends of mine... - Ah.- ..came to have a look.- Right.
0:08:56 > 0:08:59So, a good friend of mine gave me a ring and said,
0:08:59 > 0:09:04- "Look, we are not going to go for this one, so you can."- Right.
0:09:04 > 0:09:06Had you read the legal pack, though?
0:09:06 > 0:09:09- I hadn't actually read the legal pack.- Oh!
0:09:09 > 0:09:12One thing I did get done was a mining search
0:09:12 > 0:09:15- with this being a mining area.- Yes.
0:09:15 > 0:09:19So, again, my friends got that for me,
0:09:19 > 0:09:22but it didn't come up with any problems,
0:09:22 > 0:09:26so once I'd seen that, I was happy with that.
0:09:26 > 0:09:29Well, he broke a couple of Hammer's golden rules,
0:09:29 > 0:09:32but at least he got that mining report done.
0:09:32 > 0:09:34It checks for any safety concerns
0:09:34 > 0:09:37relating to an area that was close to mines
0:09:37 > 0:09:40such as subsidence and gas emissions.
0:09:40 > 0:09:43So, with that complete and there being no danger
0:09:43 > 0:09:47of it falling down a mineshaft, what are Ian's plans?
0:09:47 > 0:09:51So, tell me what you're going to do then to sort the house out.
0:09:51 > 0:09:54So, I think... Well, first off will be the doors and windows.
0:09:54 > 0:09:57I'll get some people in to give me some quotes on those,
0:09:57 > 0:09:59so get those done first.
0:09:59 > 0:10:02I've got a friend of mine coming to look at the kitchen.
0:10:02 > 0:10:06Probably look to get that completely replaced.
0:10:06 > 0:10:08Upstairs bathroom?
0:10:08 > 0:10:12I'll...get another friend of mine to come in and have a look,
0:10:12 > 0:10:15but I think it looks...largely OK.
0:10:15 > 0:10:19- OK.- So, it will certainly get a good clean,
0:10:19 > 0:10:22and then have another look at it.
0:10:22 > 0:10:25If some stuff needs replacing, then yes, I'll get that done.
0:10:25 > 0:10:27And then you've got this interesting layout
0:10:27 > 0:10:30with the two bedrooms at the front where the was originally one.
0:10:30 > 0:10:32What are you going to do about that?
0:10:32 > 0:10:34- Well, we'll certainly keep that as it is.- Right.
0:10:34 > 0:10:38Yeah, I've got no plans to take any of that out.
0:10:38 > 0:10:40- So, we'll keep it as a three-bed. - It is three beds, yeah.
0:10:40 > 0:10:43I mean, theoretically, you could have this as a four-bedroom let,
0:10:43 > 0:10:46couldn't you? Cos you could use the front room as a bedroom.
0:10:46 > 0:10:50Yes, that's another thing that attracted me to the property
0:10:50 > 0:10:55- is that it had been let to four students previously.- Right.
0:10:55 > 0:10:58So, this property has that option as well.
0:10:58 > 0:11:04- So, what's the budget?- I budgeted it around about 12,000.- OK.
0:11:04 > 0:11:07But now I've seen it, it might not need that much.
0:11:07 > 0:11:11But if I don't go to that,
0:11:11 > 0:11:16then I can certainly get the patios outside done as well,
0:11:16 > 0:11:18which certainly need some work.
0:11:18 > 0:11:22Yeah, that'd be nice. And what's the timescale?
0:11:22 > 0:11:26Well, as I'm not doing this full-time, myself, so...
0:11:26 > 0:11:29probably a little bit longer than you would have thought.
0:11:29 > 0:11:32- Maybe I'm looking...maybe the three months' mark.- OK.
0:11:32 > 0:11:35- Well, listen, congratulations. Lovely to meet you.- Thank you.
0:11:35 > 0:11:36- Good luck with it.- Thanks.
0:11:38 > 0:11:42Huh. So, Ian breaking the golden rules of not visiting the property
0:11:42 > 0:11:44or reading the legal pack before buying it.
0:11:44 > 0:11:49Still it seems he's got away with it and it certainly is a great house
0:11:49 > 0:11:52with potential to deliver some pretty impressive rental yields.
0:11:52 > 0:11:53Why would you sell?
0:11:53 > 0:11:57Well, I guess everyone's personal circumstances are different.
0:11:57 > 0:12:00You can find out what he chooses to do later in the show.
0:12:06 > 0:12:08Here we are in Tulse Hill in South London,
0:12:08 > 0:12:12which sits just between Streatham Hill and Dulwich.
0:12:13 > 0:12:16And with its own train station and good transport links,
0:12:16 > 0:12:20not only into central London but into nearby lively Brixton,
0:12:20 > 0:12:23well, it makes a popular choice for first-time buyers,
0:12:23 > 0:12:25young professionals and families.
0:12:26 > 0:12:28Well, today, I'm on the upper side of Tulse Hill in London
0:12:28 > 0:12:31and the station is about a 20-minute walk away from here.
0:12:31 > 0:12:34You've got the South Circular, it's literally just over there,
0:12:34 > 0:12:36giving you easy access into London.
0:12:36 > 0:12:40And the property I'm here to see, well, it's right here.
0:12:40 > 0:12:44It's an ex-local authority flat, it's up on the third floor
0:12:44 > 0:12:48and the guide price - £195,000.
0:12:48 > 0:12:51Now, it's pretty warm today, I felt climbing all those stairs...
0:12:51 > 0:12:55Do you think it's unrealistic of me to expect a lift here?
0:12:56 > 0:12:59Well, some of the things it definitely does come with
0:12:59 > 0:13:06are 111-year lease and a £1,187 service charge, communal gardens,
0:13:06 > 0:13:10resident parking and yes, thankfully, look, there's a lift!
0:13:10 > 0:13:16# I get lifted up hi-high
0:13:16 > 0:13:19# Hi-high
0:13:19 > 0:13:24# I get lifted up hi-high. #
0:13:24 > 0:13:26So, once inside, what have we got?
0:13:26 > 0:13:28- LAUGHING:- Well, you can see somebody
0:13:28 > 0:13:31has been very busy stripping the wallpaper.
0:13:31 > 0:13:33Yeah, there are lots of doors everywhere.
0:13:33 > 0:13:35- Uh... - SHE LAUGHS
0:13:35 > 0:13:37This is probably the slimmest cupboard.
0:13:37 > 0:13:39Well, I certainly can't get in there. And the longest.
0:13:39 > 0:13:42I'm just going to have a look and see how long it is.
0:13:42 > 0:13:43I'm still in here. There you go.
0:13:43 > 0:13:45I'm touching the end of the wall and I'm back out again.
0:13:45 > 0:13:47Honestly, you've got to see inside there.
0:13:47 > 0:13:49It just goes on forever.
0:13:49 > 0:13:51One door. We've got an intercom system,
0:13:51 > 0:13:55which is really handy, so you can speak to your guests downstairs.
0:13:55 > 0:13:57Another door, which is a bathroom.
0:13:57 > 0:13:59Fantastic. It's a white bathroom suite.
0:13:59 > 0:14:01Another door there, which is a cupboard.
0:14:01 > 0:14:03A nice-sized double bedroom there with a big window.
0:14:03 > 0:14:06The lounge through there.
0:14:06 > 0:14:09Another door through here, which is an airing cupboard.
0:14:09 > 0:14:11A door here, which is the electric meter.
0:14:11 > 0:14:14And through here - and there isn't a door on the kitchen -
0:14:14 > 0:14:17is the kitchen space. It's a little bit pink at the moment.
0:14:17 > 0:14:20And you could certainly do with upgrading some of these units,
0:14:20 > 0:14:24but what I do love is the great big window here,
0:14:24 > 0:14:28letting in loads of light and you've got fantastic views across London.
0:14:28 > 0:14:31And just above the tree tops...
0:14:31 > 0:14:33I can see the London Eye.
0:14:33 > 0:14:36So, in here, we have a really good-sized lounge.
0:14:36 > 0:14:39Now, something I'm seeing a lot of at the moment,
0:14:39 > 0:14:42doing all the viewing that I do in London flats,
0:14:42 > 0:14:45is people attempting to take the kitchen out of the kitchen,
0:14:45 > 0:14:48turn it into a bedroom and put it in the lounge.
0:14:48 > 0:14:51Now, first of all, you do need permission from the freeholder,
0:14:51 > 0:14:52but you know in this instance,
0:14:52 > 0:14:54I'm not sure that that would work.
0:14:54 > 0:14:58I think the kitchen would be an average single,
0:14:58 > 0:15:00but I don't think the lounge can take a whole bank
0:15:00 > 0:15:02of units along here.
0:15:02 > 0:15:03I just think it's too small
0:15:03 > 0:15:07and you would probably damage the value of the flat by doing so.
0:15:07 > 0:15:09But something I would recommend in here,
0:15:09 > 0:15:12even though we are three floors up and it's a very warm day,
0:15:12 > 0:15:15I don't think this gas fire is sufficient.
0:15:15 > 0:15:19So, I would certainly rip that out, get a combi boiler in.
0:15:19 > 0:15:21You can then get rid of that water tank
0:15:21 > 0:15:24and free up some space and just put some radiators in all of the rooms.
0:15:24 > 0:15:28And that is a sure-fire way of certainly adding value here.
0:15:30 > 0:15:32And by the way, even if you think this room is big enough
0:15:32 > 0:15:35to be an open-plan living/kitchen room,
0:15:35 > 0:15:39well, some local authorities would disagree with you.
0:15:39 > 0:15:43They've introduced space standards, so check it out first.
0:15:44 > 0:15:47Overall, this flat has got some real pluses,
0:15:47 > 0:15:50but it does need jazzing up to make it stand out
0:15:50 > 0:15:52in the ultracompetitive London market.
0:15:52 > 0:15:56It's got great views. It just needs an interior to match.
0:16:00 > 0:16:03What does a local estate agent think about the flat
0:16:03 > 0:16:04and the block that it's in?
0:16:06 > 0:16:09My first impression is that everything is so well-maintained
0:16:09 > 0:16:13and the front doors are newly painted, etc.
0:16:13 > 0:16:15So, that gives me the impression that there are a lot of other
0:16:15 > 0:16:17occupiers in this building.
0:16:17 > 0:16:20The communal areas are very good, there isn't any rubbish,
0:16:20 > 0:16:21there isn't any graffiti.
0:16:21 > 0:16:24So, for anybody that's looking to purchase this,
0:16:24 > 0:16:26whether it'd be an investment or to just do it up
0:16:26 > 0:16:28and turn it around quite quickly,
0:16:28 > 0:16:30that should give them the confidence that they need
0:16:30 > 0:16:33from a resale point of view that there shouldn't be any issues.
0:16:35 > 0:16:38Of course, the communal areas in the flat set
0:16:38 > 0:16:40that all-important first impression,
0:16:40 > 0:16:44but what changes are needed to maximise this flat's potential?
0:16:44 > 0:16:47What I would do is remove the kitchen
0:16:47 > 0:16:51and turn that into a bedroom and put the kitchen into the sitting room,
0:16:51 > 0:16:54so you end up with an open-plan kitchen/reception,
0:16:54 > 0:16:57two double bedrooms and a bathroom.
0:16:57 > 0:16:59That way, it's more desirable from a resale point of view,
0:16:59 > 0:17:01but you're also going to get a higher rent.
0:17:01 > 0:17:04So ultimately, that's what you need to do
0:17:04 > 0:17:06to achieve the absolute maximum.
0:17:06 > 0:17:09Well, I think I'm going to take some convincing on those
0:17:09 > 0:17:12changes of layout, but perhaps the figures will convince me.
0:17:12 > 0:17:15What would the differences be on the resale values of this flat
0:17:15 > 0:17:17guided at 195,000?
0:17:17 > 0:17:20First, as a one-bed, what could it achieve?
0:17:20 > 0:17:22If I was to place this on the open market
0:17:22 > 0:17:24once the property has been refurbished,
0:17:24 > 0:17:29I would be looking to achieve offers around about £250,000.
0:17:29 > 0:17:30And as a two-bed?
0:17:30 > 0:17:36I would be looking to market the property around about £275,000.
0:17:36 > 0:17:39The agent thought it could rent out as a one-bed
0:17:39 > 0:17:41for £900 per calendar month
0:17:41 > 0:17:45whereas as a two-bed, it could make as much £1,300 per calendar month.
0:17:45 > 0:17:48On the face of it, that looks like a big profit,
0:17:48 > 0:17:50but you do have conversion costs to factor in.
0:17:50 > 0:17:52I guess if you're renting this out long-term,
0:17:52 > 0:17:56then getting the extra bedroom would really be worthwhile.
0:17:57 > 0:18:01This ex-local authority flat needs central heating installed
0:18:01 > 0:18:05and then, well, I just think it could be a quick doer-upper.
0:18:05 > 0:18:08It's a great space and got at the right price,
0:18:08 > 0:18:12well, I think it would be an ideal rental for a London investor.
0:18:12 > 0:18:13So, let's see what happened
0:18:13 > 0:18:16when this one-bed flat went under the hammer.
0:18:20 > 0:18:24Lot 57 - SW2, third-floor flat.
0:18:24 > 0:18:27This one does need a bit of TLC, this.
0:18:27 > 0:18:29The original guide price in the catalogue
0:18:29 > 0:18:32was increased to 195,000 on auction day,
0:18:32 > 0:18:36but the auctioneer started above even that.
0:18:36 > 0:18:39Start me around 210 for it. 210.
0:18:39 > 0:18:42Thank you. 210, I'm bid. 212? 212.
0:18:42 > 0:18:46214? 214. 216?
0:18:46 > 0:18:48216. 218?
0:18:48 > 0:18:51220. 222. 224.
0:18:51 > 0:18:55226. 228?
0:18:55 > 0:18:59228? Take 227, if it helps either of you or anyone else.
0:18:59 > 0:19:02Otherwise at 226, I'm bid. Once.
0:19:02 > 0:19:03226, twice...
0:19:04 > 0:19:06..third and final time.
0:19:07 > 0:19:10Yours, madam, at £226,000.
0:19:10 > 0:19:11Your bidder number is?
0:19:13 > 0:19:15And so, in no time at all,
0:19:15 > 0:19:19the one-bed flat in Tulse Hill was bought for 226,000 by Sara.
0:19:21 > 0:19:24Now, Sara lives just five minutes away and she joined me back
0:19:24 > 0:19:26at the flat along with her dog, Fluffbert.
0:19:30 > 0:19:32- Sara, congratulations. - Thank you very much.
0:19:32 > 0:19:34Let's start at the beginning with this property
0:19:34 > 0:19:37because I know you had a few little changes prior to the auction
0:19:37 > 0:19:39- with bidding for this.- Exactly.
0:19:39 > 0:19:42So, on the day of the auction, they put the guide price up,
0:19:42 > 0:19:44so I had to make quite a snap decision on the day
0:19:44 > 0:19:47whether or not I was actually going to bid on it at all.
0:19:47 > 0:19:49Right, so how did you make your mind up in a split second
0:19:49 > 0:19:51whether this was still right for you or not?
0:19:51 > 0:19:53Well, I realised at that point
0:19:53 > 0:19:55that there's still a decent rental yield from it.
0:19:55 > 0:19:58I probably was eating into my profit in terms of redeveloping it
0:19:58 > 0:20:01and quickly selling it on, but I like the area
0:20:01 > 0:20:04and sort of the long-term reasons I wanted to buy it were still there.
0:20:04 > 0:20:07But we did get very close to, I think, the level where I decided
0:20:07 > 0:20:08I wasn't going to go any higher.
0:20:08 > 0:20:11And what is it about this property that was so right for you?
0:20:11 > 0:20:12The location is great.
0:20:12 > 0:20:14I think at the moment there's a lot going on around here.
0:20:14 > 0:20:17We've seen Brixton really develop in the past few years
0:20:17 > 0:20:19and the road towards Clapham South,
0:20:19 > 0:20:20there's been a lot of investment there.
0:20:20 > 0:20:22And it's slowly trickling back this way.
0:20:22 > 0:20:26Over the road, there's a new development just going up.
0:20:26 > 0:20:28So, I think all of that, to me, really bodes well for the future.
0:20:28 > 0:20:31So, I thought this is a really good place to be buying for now
0:20:31 > 0:20:33and for a long-term rental.
0:20:33 > 0:20:36If Sara sounds like she knows what she's doing,
0:20:36 > 0:20:38well, that's because she has two rented properties already.
0:20:38 > 0:20:42And while her husband, Sam, is on hand for help and advice,
0:20:42 > 0:20:44there's also a VIC,
0:20:44 > 0:20:46that's a very important canine.
0:20:47 > 0:20:50Now, I know it's not only you that you've got to take into account
0:20:50 > 0:20:52whether you like this property and, of course, your husband...
0:20:52 > 0:20:56There's someone else in your family that's loved very much, isn't there?
0:20:56 > 0:20:59Yeah, so our little dog, Fluffbert, does come on all viewings.
0:20:59 > 0:21:02And it's often a good test of how much work needs doing
0:21:02 > 0:21:04in a property to whether or not I even put him on the ground.
0:21:04 > 0:21:07- Really?- So in here, when he came, he was running around,
0:21:07 > 0:21:10chasing his ball as I was doing my first viewing,
0:21:10 > 0:21:11and I realised then at that point,
0:21:11 > 0:21:14it's probably quite a good flat and wouldn't need a lot of work.
0:21:14 > 0:21:18Well, that's good. The flat has passed the Fluffbert test.
0:21:18 > 0:21:20But the flat is a bit of a mess.
0:21:20 > 0:21:23Not quite a dog's dinner, but it's far from being the cat's whiskers.
0:21:23 > 0:21:25So, what does Sara plan to do with it?
0:21:28 > 0:21:32With this one, I'm really choosing between two options.
0:21:32 > 0:21:36And one is to do it up quickly to a really nice, high specification
0:21:36 > 0:21:38and try and sell it.
0:21:38 > 0:21:40The alternative is to perhaps try and convert it
0:21:40 > 0:21:45into a two-bed for rental, providing the leaseholder allows that.
0:21:45 > 0:21:47And then rent it out for, really, a couple of years
0:21:47 > 0:21:48and see where the market takes me.
0:21:48 > 0:21:50And if it was a two-bed,
0:21:50 > 0:21:52I presume, you're thinking of moving the kitchen in here.
0:21:52 > 0:21:56- Absolutely.- I do think it might be a little bit on the small side.
0:21:56 > 0:21:57That's my only concern.
0:21:57 > 0:21:59It's a smallish room, but I've seen a lot smaller.
0:21:59 > 0:22:01I think it depends on, really, who moves in
0:22:01 > 0:22:03and what their requirements are.
0:22:03 > 0:22:05I mean, some people need space and some people need two bedrooms.
0:22:05 > 0:22:07What sort of budget have you got for the work here?
0:22:07 > 0:22:10Because I can see the walls have all been stripped.
0:22:10 > 0:22:12It would be quite straightforward to do this place up.
0:22:12 > 0:22:14It really depends on the specification I want to go for
0:22:14 > 0:22:17and whether I put a new boiler in or not.
0:22:17 > 0:22:20I think just simply putting on electric radiators,
0:22:20 > 0:22:23a new lick of paint, perhaps smartening up the kitchen a bit
0:22:23 > 0:22:26and 5,000 will be more than sufficient.
0:22:26 > 0:22:28If I go for a new boiler...
0:22:28 > 0:22:30I also need to get the electric tested,
0:22:30 > 0:22:34so I think it depends upon that as well, but it may stretch to 10,000.
0:22:34 > 0:22:36If Sara is uncertain about her budget,
0:22:36 > 0:22:39the same is true of her timescale because if she does decide to
0:22:39 > 0:22:43move the kitchen, she'll need to get approval from the freeholder,
0:22:43 > 0:22:46and that could take six to eight weeks just for a decision.
0:22:46 > 0:22:49Whereas a quick refurbishment with new central heating could
0:22:49 > 0:22:50take just a few weeks.
0:22:53 > 0:22:54So, let's talk about your past
0:22:54 > 0:22:56because I know this isn't what you've always done.
0:22:56 > 0:22:59I mean, at the moment, you are buying and selling property.
0:22:59 > 0:23:01But you've not always done this, have you?
0:23:01 > 0:23:03No, so I started life in an international development
0:23:03 > 0:23:05and I was an economic advisor to Eastern Europe.
0:23:05 > 0:23:07And then I moved the Treasury.
0:23:07 > 0:23:09And most recently, I've been working in banking,
0:23:09 > 0:23:12but after quite a number of years, I just wanted a bit of a break.
0:23:12 > 0:23:14So, I'm having a bit of a pause, bit of a sabbatical.
0:23:14 > 0:23:16And in that time,
0:23:16 > 0:23:19I thought it would be... We've often talked, my husband and I, about
0:23:19 > 0:23:22- building up almost a pension portfolio of properties.- Yeah.
0:23:22 > 0:23:25So, I've been really trying to do that this year.
0:23:25 > 0:23:27Oh, well, I'm really excited to see the outcome of what you do -
0:23:27 > 0:23:30is it plan A, is it plan B? Good luck with whatever you do
0:23:30 > 0:23:31and congratulations.
0:23:31 > 0:23:33Well done for even getting the flat at auction.
0:23:33 > 0:23:37- Thank you very much. - Lovely to meet you. Thank you.
0:23:37 > 0:23:40So, Sara is looking at two possibilities here -
0:23:40 > 0:23:42doing it up quickly and then renting it out
0:23:42 > 0:23:46or the slightly more timely and costly option of moving the kitchen
0:23:46 > 0:23:50into the living room to create that second bedroom.
0:23:50 > 0:23:53However, she still needs permission from the management company,
0:23:53 > 0:23:56and that will certainly slow things down for her.
0:23:56 > 0:23:59Join me later on, and you can see what she decided.
0:24:02 > 0:24:07Coming up, I've got a bit of a soft spot for this property in Derby.
0:24:07 > 0:24:10This place just keeps giving. I love it!
0:24:12 > 0:24:15And we return to South London and our one-bedroom flat
0:24:15 > 0:24:17to hear the end of our shaggy dog story.
0:24:17 > 0:24:19Fluffbert's been here,
0:24:19 > 0:24:21I'd say in the last week, pretty much continually.
0:24:24 > 0:24:28Silverdale in Staffordshire was where we first saw
0:24:28 > 0:24:30a three-bedroom, end-of-terrace house,
0:24:30 > 0:24:34which offered sizable accommodation downstairs.
0:24:34 > 0:24:38While upstairs, well, you could say it was using the room to the max.
0:24:39 > 0:24:42To increase the number of bedrooms in the property,
0:24:42 > 0:24:44this one bedroom has been divided into two -
0:24:44 > 0:24:48one on this side and another one here.
0:24:48 > 0:24:51And as you can see, they've achieved that, really, just by splitting
0:24:51 > 0:24:53down through the window at the front.
0:24:53 > 0:24:55But with a nearby university
0:24:55 > 0:24:58and therefore the possibility of student rentals,
0:24:58 > 0:25:01getting the maximum number of bedrooms was paramount
0:25:01 > 0:25:03for any buy-to-let investor.
0:25:03 > 0:25:08And it was bought for £61,500 by locally-based man Ian,
0:25:08 > 0:25:10who'd started property developing
0:25:10 > 0:25:14as a sideline to his career as a software engineer.
0:25:15 > 0:25:18It looked interesting straightaway, yeah.
0:25:18 > 0:25:22I could see that it was a three-bed, Italian upstairs bathroom.
0:25:22 > 0:25:25It's in quite a good location here in Silverdale.
0:25:25 > 0:25:28Theoretically, you could have this as a four-bedroom let,
0:25:28 > 0:25:32couldn't you? Cos you could use the front room as a bedroom.
0:25:32 > 0:25:35That's another thing that attracted me to the property
0:25:35 > 0:25:39- is that it had been let to four students previously.- Right.
0:25:39 > 0:25:42So, this property has that option as well.
0:25:42 > 0:25:46# It's your choice... #
0:25:46 > 0:25:47But whatever route Ian chose,
0:25:47 > 0:25:50first and foremost, he had to improve the condition
0:25:50 > 0:25:54of the house and he hoped he could get it sorted on a £12,000 budget
0:25:54 > 0:25:57and in a three-month timeframe.
0:25:59 > 0:26:01But now, eight months have passed,
0:26:01 > 0:26:03and it's time to see how Ian's got on
0:26:03 > 0:26:06with his potential student home...work.
0:26:08 > 0:26:11New double-glazed windows and front door
0:26:11 > 0:26:13show encouraging signs outside.
0:26:15 > 0:26:17And inside?
0:26:21 > 0:26:24Well, it's crisp, simple and practical.
0:26:24 > 0:26:27There's a modern fireplace and new French doors.
0:26:29 > 0:26:32The old kitchen was totally ripped out
0:26:32 > 0:26:37and replaced with a brand-new kitchen, retiled and repainted.
0:26:38 > 0:26:40I did like the original kitchen,
0:26:40 > 0:26:42but this is certainly more streamlined,
0:26:42 > 0:26:45and the laminate floor gives a nice, clean flow
0:26:45 > 0:26:47between the back reception room and kitchen.
0:26:51 > 0:26:53And upstairs, there's no layout changes,
0:26:53 > 0:26:56but the new decor certainly makes the three bedrooms
0:26:56 > 0:26:58look more inviting.
0:27:02 > 0:27:03And the bathroom?
0:27:03 > 0:27:07So, this is the bathroom. It's a nice big bathroom.
0:27:07 > 0:27:11There was a glass brick shower enclosure here,
0:27:11 > 0:27:14which was just rotten.
0:27:14 > 0:27:17So, that's come out and has been replaced with shower walls,
0:27:17 > 0:27:19a new shower unit and cubicle.
0:27:19 > 0:27:22I got rid of the old border tiles and replaced them
0:27:22 > 0:27:26with a new modern border, and it's been repainted.
0:27:26 > 0:27:28So, I'm really pleased with the results.
0:27:28 > 0:27:31Yes, this is so much better
0:27:31 > 0:27:34and perfect as either a family or communal bathroom.
0:27:36 > 0:27:39Outside at the back, which was in a sorry state,
0:27:39 > 0:27:43Ian has had it re-landscaped and new paving laid
0:27:43 > 0:27:45along with some new fencing.
0:27:45 > 0:27:48So, all in all, top-class job, I reckon.
0:27:50 > 0:27:53I think the biggest challenge with the renovation of this house
0:27:53 > 0:27:56was undoubtedly the painting.
0:27:56 > 0:27:59I knew it was quite a big house, but when I started painting it,
0:27:59 > 0:28:01I started to realise how big it was.
0:28:01 > 0:28:04So, it was a major, major job in the end,
0:28:04 > 0:28:07and that was the job that definitely took the longest
0:28:07 > 0:28:09and was the hardest work.
0:28:09 > 0:28:11Yes, it's not a small house.
0:28:11 > 0:28:15It took three days alone just to do the hall and stairway.
0:28:15 > 0:28:19So, maybe not surprisingly, his timescale has more than doubled,
0:28:19 > 0:28:21but while he was applying those layers of paint,
0:28:21 > 0:28:25did he decide on what he wanted to do with the house?
0:28:25 > 0:28:29The house is on the student market at the moment,
0:28:29 > 0:28:32so we'll see how that goes.
0:28:32 > 0:28:35If students don't take it, then it's...
0:28:35 > 0:28:38I hope to rent it out to a family.
0:28:38 > 0:28:41Hm... So nothing completely set in stone yet.
0:28:41 > 0:28:45I hope he can be a bit more definite on his £12,000 budget.
0:28:46 > 0:28:48So, spent a bit more than that.
0:28:48 > 0:28:52It's more like around the £13,800 mark.
0:28:52 > 0:28:55There were one or two unforeseen expenditures,
0:28:55 > 0:28:58such as getting the loft insulated
0:28:58 > 0:29:00and the shower unit
0:29:00 > 0:29:01and one or two other things as well.
0:29:01 > 0:29:03But I got the house at a good price,
0:29:03 > 0:29:06so I still think that's been a reasonable spend.
0:29:08 > 0:29:14That £13,800 along with his £61,500 purchase price
0:29:14 > 0:29:18takes his total costs to £75,300.
0:29:18 > 0:29:21So, does that add up to a good deal?
0:29:21 > 0:29:24What do two local property experts think?
0:29:28 > 0:29:31The property has been renovated to a very good standard,
0:29:31 > 0:29:33and the finish has been done to a very high level
0:29:33 > 0:29:35and also a very good addition
0:29:35 > 0:29:38with the new kitchen suite in the property.
0:29:38 > 0:29:40It's my first time inside the property.
0:29:40 > 0:29:43I'm extremely impressed.
0:29:43 > 0:29:45There's a lot of space.
0:29:45 > 0:29:47I'm pleased that there are two reception rooms
0:29:47 > 0:29:48and a dining kitchen.
0:29:48 > 0:29:51And it's also quite spacious upstairs.
0:29:51 > 0:29:54Ian has bought this as a long-term rental,
0:29:54 > 0:29:56but if he did decide to sell now,
0:29:56 > 0:30:01could he make any profit on his £75,300 investment?
0:30:01 > 0:30:04I would expect this property to achieve in the region
0:30:04 > 0:30:08of £95,000 to £100,000.
0:30:08 > 0:30:10I would place the property on the market
0:30:10 > 0:30:13for sale at £95,000 to £100,000.
0:30:13 > 0:30:15Right. Yeah, very happy with that.
0:30:16 > 0:30:17Yeah, it's...
0:30:17 > 0:30:22a little bit more than I was expecting, but, yeah, very pleased.
0:30:22 > 0:30:25I bet you are, Ian. That could mean a potential pre-tax profit
0:30:25 > 0:30:29of £24,700 on the top valuation.
0:30:29 > 0:30:32And the agents also reckon that, let as a family house,
0:30:32 > 0:30:37he could get a rental return of around £525 per calendar month,
0:30:37 > 0:30:41which would generate a yield of around 8%.
0:30:41 > 0:30:44But Ian is currently hoping it will be a student let
0:30:44 > 0:30:47with the front reception room making it a four-bed let.
0:30:47 > 0:30:49So, how would that work out?
0:30:50 > 0:30:54If this property was let to students on a four-room basis,
0:30:54 > 0:31:00I would expect it to achieve in the region of £950 per calendar month.
0:31:00 > 0:31:03If the property was let on a room-to-room basis,
0:31:03 > 0:31:06I would expect the property to achieve somewhere in the region
0:31:06 > 0:31:09of £850 to £950 per calendar month.
0:31:09 > 0:31:13I'm intending to advertise a slightly lower rate than that,
0:31:13 > 0:31:16but I will bear those figures in mind.
0:31:16 > 0:31:19Student lets are generally only for nine to ten months of the year
0:31:19 > 0:31:23and, of course, are based on full occupancy of the four rooms,
0:31:23 > 0:31:27but even the lower £850 per calendar month would generate
0:31:27 > 0:31:29a healthy yield above 10%.
0:31:29 > 0:31:33So, it would bring in a greater return on his investment.
0:31:34 > 0:31:36Whichever route he chooses,
0:31:36 > 0:31:39it seems to have been a successful financial venture,
0:31:39 > 0:31:41but did he enjoy doing it?
0:31:44 > 0:31:46The experience on the whole has been a good one.
0:31:46 > 0:31:49It's been very, very hard work.
0:31:49 > 0:31:52Much harder work than I envisaged.
0:31:52 > 0:31:54But when I look round now,
0:31:54 > 0:31:55I think it's all been worth it.
0:31:58 > 0:32:02BAGPIPES PLAY
0:32:02 > 0:32:05Oh, the stirring sound of the bagpipes,
0:32:05 > 0:32:07which means we must be in...
0:32:07 > 0:32:09Derby.
0:32:09 > 0:32:12Yes, slap bang in the middle of England,
0:32:12 > 0:32:15but a city with a historical connection to Scotland,
0:32:15 > 0:32:18for it was here in December 1745
0:32:18 > 0:32:20that Bonnie Prince Charlie rode into town
0:32:20 > 0:32:23with an army of 6,000 Highlanders
0:32:23 > 0:32:25intent on continuing to London to claim the throne.
0:32:27 > 0:32:29Derby was as far south as he got,
0:32:29 > 0:32:32and the Jacobite uprising came to a sticky end the following year.
0:32:34 > 0:32:37You'll be glad to hear there's no marauding armies nowadays,
0:32:37 > 0:32:41but as I walk up this relatively quiet residential street
0:32:41 > 0:32:43towards the property I'm here to see,
0:32:43 > 0:32:47we're only a few minutes' walk away from Derby's city centre.
0:32:47 > 0:32:48And here it is.
0:32:48 > 0:32:50It's a two-bed, mid-terrace house
0:32:50 > 0:32:52with a guide price of £85,000+.
0:32:52 > 0:32:54I'm going to get inside and take a look.
0:32:59 > 0:33:00So, we're in off the street,
0:33:00 > 0:33:04straight into the lounge/front-room area,
0:33:04 > 0:33:06and it's in very good condition.
0:33:06 > 0:33:09Really nice flooring as well.
0:33:09 > 0:33:11Modern fireplace. I'm pretty sure,
0:33:11 > 0:33:14back in the day, there would have been a real coal fire there.
0:33:14 > 0:33:16But it looks like it's just been painted.
0:33:16 > 0:33:18Central heating as well.
0:33:18 > 0:33:21In really nice condition. What a nice start, that is.
0:33:21 > 0:33:23We're going to go through to the back of the property.
0:33:23 > 0:33:26Stairs going up to the bedrooms and through into here,
0:33:26 > 0:33:29which would have been a second reception room.
0:33:29 > 0:33:31And as you can see, it's now a kitchen.
0:33:31 > 0:33:33A very nice kitchen.
0:33:33 > 0:33:35Probably had a dining table over there at some stage,
0:33:35 > 0:33:37but this is a...
0:33:37 > 0:33:39this is brand-new.
0:33:39 > 0:33:42There's even a sticker on the oven just there.
0:33:42 > 0:33:45Very nice, very neat. I don't think it's been used in here.
0:33:45 > 0:33:47You've also got a toilet
0:33:47 > 0:33:51and shower room down at the end of the property there.
0:33:51 > 0:33:53This is nice. I do like this.
0:33:53 > 0:33:55Let's take a look at this - the shower room.
0:33:56 > 0:33:59Like the rest of the property, it is in great condition.
0:33:59 > 0:34:01I would imagine this cupboard here
0:34:01 > 0:34:04would have been for the washing machine,
0:34:04 > 0:34:06but you could quite easily take that out,
0:34:06 > 0:34:08give yourself a bit more space.
0:34:08 > 0:34:12But apart from that, toilet, sink and the shower all seem
0:34:12 > 0:34:14to be in very good condition.
0:34:14 > 0:34:15But let me just show you this.
0:34:15 > 0:34:17Excuse me, one minute.
0:34:22 > 0:34:23If you can still see me...
0:34:26 > 0:34:29..you're going to need to change these doors for definite.
0:34:29 > 0:34:34# Ooh, if you could see me now... #
0:34:34 > 0:34:36And on the subject of hiding things away,
0:34:36 > 0:34:39if you were to move the washing machine out of the shower room,
0:34:39 > 0:34:41there is a perfect spot for it.
0:34:41 > 0:34:43This house comes with a cellar.
0:34:43 > 0:34:46And wouldn't that make a perfect utility room?
0:34:46 > 0:34:48Let's see if the good news keeps coming upstairs.
0:34:50 > 0:34:52As you can see, it's the front of the property,
0:34:52 > 0:34:55and we're upstairs in one of the bedrooms.
0:34:55 > 0:34:58It looks like it's just been decorated.
0:34:58 > 0:35:02It might not be everybody's taste, but it looks fresh and new.
0:35:02 > 0:35:04Good space, good-sized bedroom.
0:35:04 > 0:35:06Central heating as well.
0:35:06 > 0:35:10Just across the stairs into the second bedroom,
0:35:10 > 0:35:12and again, it's a good size.
0:35:12 > 0:35:15It looks like it's just been wallpapered as well.
0:35:15 > 0:35:17New curtains.
0:35:17 > 0:35:20And I'm pretty sure this is the master bedroom
0:35:20 > 0:35:25cos you have got a lovely spacious en suite.
0:35:27 > 0:35:30This place just keeps giving. I love it!
0:35:31 > 0:35:33# Love is in the air
0:35:35 > 0:35:37# Love is in the air
0:35:39 > 0:35:40# Oh, oh-oh. #
0:35:40 > 0:35:43I'm loving this one, for sure,
0:35:43 > 0:35:45but the downside might be that there's little opportunity
0:35:45 > 0:35:48to add value if you wanted to sell on.
0:35:48 > 0:35:50However, if you're looking for a house to live in,
0:35:50 > 0:35:52this could be a cracker.
0:35:52 > 0:35:55What does an agent from the auction house who sold it think?
0:35:55 > 0:35:58# Love is in the air. #
0:35:58 > 0:36:00After having a look around,
0:36:00 > 0:36:02I wouldn't really say there was anything that needed to be done.
0:36:02 > 0:36:05You can always make things different for your own taste,
0:36:05 > 0:36:07but there isn't anything that springs to mind
0:36:07 > 0:36:09that you would think, "I've got to do this."
0:36:09 > 0:36:11If I were to put this property in its current condition
0:36:11 > 0:36:13on the open market, I would expect it to achieve
0:36:13 > 0:36:15somewhere in the region of £120,000.
0:36:15 > 0:36:17If I were to offer this to the rental market
0:36:17 > 0:36:20in its current condition, I would expect it to achieve
0:36:20 > 0:36:24somewhere in the region of £500 per calendar month.
0:36:24 > 0:36:28Try as I might, I can't find much wrong with this property,
0:36:28 > 0:36:30but the one thing I would change,
0:36:30 > 0:36:32is that toilet door, just for a bit of privacy.
0:36:32 > 0:36:36Apart from that, this place is more or less ready to go.
0:36:36 > 0:36:39Let's see who was lucky enough to get it when it went under the hammer.
0:36:40 > 0:36:44Lot 16, we've got a traditional older-style, terraced house.
0:36:44 > 0:36:46It's got two-bedroomed accommodation,
0:36:46 > 0:36:48and it's had a new kitchen and bathroom installed.
0:36:48 > 0:36:50Gas central heated, double glazed.
0:36:50 > 0:36:53Start me where you like on this. Might say 88 for it.
0:36:53 > 0:36:5588.
0:36:55 > 0:36:5785?
0:36:57 > 0:37:0085, thank you. 85,000, I have as an opening bid.
0:37:00 > 0:37:04At £85,000. 86 is bid. 86. Seven?
0:37:04 > 0:37:0787. Eight? 88. Nine?
0:37:07 > 0:37:1190,000. 91. 92.
0:37:11 > 0:37:1393. 94.
0:37:13 > 0:37:1795,000. 96. 96.
0:37:17 > 0:37:20It's in the market, ladies and gentlemen. It's going to go.
0:37:20 > 0:37:22At 96. 500 help you?
0:37:22 > 0:37:2696,000 here. 96,500 somewhere else?
0:37:26 > 0:37:2996,500. 97.
0:37:29 > 0:37:31Five again?
0:37:31 > 0:37:33£97,000.
0:37:33 > 0:37:35All done with it.
0:37:35 > 0:37:37At 97,000 for the first time.
0:37:37 > 0:37:39500. 98.
0:37:39 > 0:37:42At 98. One more.
0:37:42 > 0:37:45£98,000, going once.
0:37:45 > 0:37:47Going twice. Third chance.
0:37:47 > 0:37:48All done.
0:37:49 > 0:37:51Sold at 98,000, thank you.
0:37:53 > 0:37:57Making that final bid of 98 grand were Simon and Susie,
0:37:57 > 0:38:01husband and wife and now first-time property developers.
0:38:01 > 0:38:03This isn't a typical auction purchase,
0:38:03 > 0:38:06being in pristine condition, but now they own it,
0:38:06 > 0:38:08what, if anything, do they plan to do with it?
0:38:09 > 0:38:13# I'm yours Doo-doo-doo-doo-ya
0:38:13 > 0:38:16# Ba-doo-ya-doo-doo-doo-doo But do ya want to...? #
0:38:16 > 0:38:18- Nice to meet you, Simon. Congratulations.- Thanks.
0:38:18 > 0:38:19Same to you, Susie.
0:38:19 > 0:38:22Who's the lucky person or the clever person that found this?
0:38:22 > 0:38:24- It was me.- And how did you find it?
0:38:24 > 0:38:26Just looking through the auction catalogue.
0:38:26 > 0:38:29Was this the kind of property you were looking for?
0:38:29 > 0:38:30- For the first time, yes.- Yes.
0:38:30 > 0:38:35Cos it's a first-time investment, so didn't want anything too taxing,
0:38:35 > 0:38:37too difficult, and this one ticked all the boxes.
0:38:37 > 0:38:40- And more, I think, to be honest with you.- Absolutely.
0:38:40 > 0:38:43Susie, what made you want to get into property in the first place?
0:38:43 > 0:38:46Just been watching Homes Under The Hammer, haven't we?
0:38:46 > 0:38:47See, we've done something right, didn't we?
0:38:47 > 0:38:51Inspiration from the programme. I think it makes you realise that...
0:38:51 > 0:38:52It accesses so many other people,
0:38:52 > 0:38:54so it gives you the inspiration to have a go,
0:38:54 > 0:38:57and then we've watched the programme that long,
0:38:57 > 0:39:00we've seen the pitfalls and the problems people have come across.
0:39:00 > 0:39:02So, we thought now was the time to do it.
0:39:02 > 0:39:06We don't live that far away from here. We know the area.
0:39:06 > 0:39:09This is a nice part of Derby near the centre.
0:39:09 > 0:39:10So far, so good.
0:39:10 > 0:39:12They're making all the right noises,
0:39:12 > 0:39:13but will they pass
0:39:13 > 0:39:17the Homes Under The Hammer legal pack question?
0:39:17 > 0:39:20- Yeah, we've done that, haven't we?- Yeah.- Yeah.
0:39:20 > 0:39:22That's been Susie's speciality, the legal pack.
0:39:22 > 0:39:24- If it was me, I'd be a typical bloke.- Exactly.
0:39:24 > 0:39:27I don't read instruction manuals when we build DIY furniture,
0:39:27 > 0:39:29so I'd be no different with legal packs.
0:39:29 > 0:39:31So, Susie takes all the credit for that.
0:39:31 > 0:39:32I could have bought anything.
0:39:32 > 0:39:34And it doesn't last. When you try and put something up
0:39:34 > 0:39:36without the instructions...
0:39:36 > 0:39:38Then there's something still in the box at the bottom,
0:39:38 > 0:39:41and I realise that was the integral part holding it together.
0:39:41 > 0:39:43- And then I'll blame the instructions afterwards.- Exactly.
0:39:43 > 0:39:46- And they would've done it first time, wouldn't they?- Exactly.
0:39:46 > 0:39:48You know, it's so annoying. We love you very much.
0:39:48 > 0:39:50But you always get it right and we don't.
0:39:50 > 0:39:52And that's annoying, isn't it?
0:39:54 > 0:39:56Well, I'm glad Susie is on the ball.
0:39:56 > 0:39:58And I think she has picked out a real peach
0:39:58 > 0:40:01from the auction catalogue, but I'm still struggling to find out
0:40:01 > 0:40:03what really needs doing here.
0:40:04 > 0:40:07I know it's a silly question, but what are you going to do?
0:40:07 > 0:40:09- There's got to be something here. - I think a new fire.
0:40:09 > 0:40:13Fire and a fireplace, I think that could do with changing.
0:40:13 > 0:40:16I think a lick of paint always is a good thing as well
0:40:16 > 0:40:19just to freshen it up. New doors throughout the house.
0:40:19 > 0:40:21Possible new boiler
0:40:21 > 0:40:24- because that is quite old. - That's quite old.
0:40:24 > 0:40:26Yeah, we're going to get service first of all.
0:40:26 > 0:40:29Change the locks on the property because they are not very secure.
0:40:29 > 0:40:32And general weeding and tidying up in the gardens.
0:40:32 > 0:40:35The biggest thing might be the removal of the trees at the back
0:40:35 > 0:40:37because they are in a neighbouring property.
0:40:37 > 0:40:40So, we're going to have to knock on their door and see if they're happy.
0:40:40 > 0:40:42And then, of course, it's access points as well.
0:40:42 > 0:40:45Getting into the property for a tree surgeon, so...
0:40:45 > 0:40:48Just to basically make it more presentable.
0:40:48 > 0:40:53What are you going to do with those funny doors going into the toilet?
0:40:53 > 0:40:55Well, it would be funny to leave them,
0:40:55 > 0:40:58but I think we need to get rid of them for a bit of privacy.
0:40:58 > 0:41:00- I think it's...- Yeah.
0:41:00 > 0:41:02It's not the look you need, is it, to be fair,
0:41:02 > 0:41:03so they are going to have to go.
0:41:03 > 0:41:06I realise there was a washing machine in the bathroom as well.
0:41:06 > 0:41:09But you've got a cellar. What are your plans for all that?
0:41:09 > 0:41:12The cellar, really, is just make it nice and presentable.
0:41:12 > 0:41:14Paint, clean...
0:41:14 > 0:41:16Would you consider turning it into a utility room, maybe?
0:41:16 > 0:41:20Yeah, I think we'd have to give that some thought.
0:41:20 > 0:41:23I think I have sown the seeds of an idea here.
0:41:23 > 0:41:26Hopefully, it won't add too much to their budget of £5,000,
0:41:26 > 0:41:29which I think should cover the boiler,
0:41:29 > 0:41:33fireplace and the possible work outside in the garden.
0:41:33 > 0:41:35And they hope to knock it all off in four to six weeks.
0:41:37 > 0:41:39What's the plan for the house when it is complete?
0:41:40 > 0:41:43- To sell would be ideal.- I think the main thing would be to sell,
0:41:43 > 0:41:45but if it didn't sell within a short time,
0:41:45 > 0:41:46then we would rent it out
0:41:46 > 0:41:49cos obviously, you lose money the longer it goes on.
0:41:49 > 0:41:51- Four to six weeks.- Yeah, maximum.
0:41:51 > 0:41:53- £5,000 budget.- Mm-hm.
0:41:55 > 0:41:58Doddle. Absolute doddle. I might come in with you, half each.
0:41:58 > 0:42:00We were going to bring some paintbrushes for you today
0:42:00 > 0:42:02and some overalls as well, if you don't mind.
0:42:02 > 0:42:05- Wish you all the best, Simon. - Thanks very much, Dion.- Good luck.
0:42:05 > 0:42:07- Wish you all the best, Susie. - Thank you.- Thank you.
0:42:08 > 0:42:11For Susie and Simon, just starting out in the property developing
0:42:11 > 0:42:13world, this project is perfect.
0:42:13 > 0:42:16They've given themselves a £5,000 budget
0:42:16 > 0:42:18and a four-to-six-week timescale.
0:42:18 > 0:42:21I don't think it will get anywhere near either of those estimates.
0:42:21 > 0:42:23You can find out how they get on later on in the programme.
0:42:26 > 0:42:28Well, we've seen what one of our buyers did with their purchase,
0:42:28 > 0:42:33- but what about the other two? - Did everything go to plan or not?
0:42:33 > 0:42:34Let's find out.
0:42:38 > 0:42:41Tulse Hill in south London was where we first came across
0:42:41 > 0:42:46a one-bed, third-floor flat in a well-maintained tower block.
0:42:46 > 0:42:48And with the addition of communal gardens,
0:42:48 > 0:42:51plenty of parking spaces
0:42:51 > 0:42:53and ready access to good transport links,
0:42:53 > 0:42:58this flat had a lot going for it and it was bought for £226,000
0:42:58 > 0:43:03by financial analyst Sara as her third property purchase,
0:43:03 > 0:43:07but she really wasn't quite sure what she was going to do with it.
0:43:07 > 0:43:10With this one, I'm really choosing between two options
0:43:10 > 0:43:13and one is to do it up quickly
0:43:13 > 0:43:16to a really nice, high specification and try and sell it.
0:43:16 > 0:43:18The alternate is to perhaps try and convert it
0:43:18 > 0:43:21into a two-bed for rental,
0:43:21 > 0:43:23providing that the leaseholder allows that,
0:43:23 > 0:43:25and then rent it out for, really, a couple of years
0:43:25 > 0:43:28- and see where the market takes me. - And if it was a two-bed,
0:43:28 > 0:43:32- I presume you're thinking of moving the kitchen in here.- Absolutely.
0:43:32 > 0:43:34A downside to the two-bedroom option
0:43:34 > 0:43:37was that it was likely to take six to eight weeks
0:43:37 > 0:43:39to get a decision from the freeholder
0:43:39 > 0:43:42and with her banking background, Sara was keen to take the route
0:43:42 > 0:43:45that would give her the best financial return.
0:43:45 > 0:43:48So, what was it to be?
0:43:48 > 0:43:49# Make up your mind
0:43:51 > 0:43:53# Make up your mind
0:43:56 > 0:44:00# Girl, make up your mind before it's too late... #
0:44:00 > 0:44:02Well, in just under two months,
0:44:02 > 0:44:06we're back with Sara and faithful dog Fluffbert to find out.
0:44:14 > 0:44:16Well, the bedroom has been fully refurbished
0:44:16 > 0:44:19and is ready to move into, but what about the lounge?
0:44:19 > 0:44:21Is it now a kitchen/diner?
0:44:24 > 0:44:27So, in this room, we've done, I'd say, three main things.
0:44:27 > 0:44:29First of all, we sorted the walls out.
0:44:29 > 0:44:32They were full of tiny holes, which took about three days
0:44:32 > 0:44:34of filling and sanding and filling and sanding.
0:44:34 > 0:44:37The other thing we've done is to put heating in here.
0:44:37 > 0:44:39So, first of all, we've got the electric radiators,
0:44:39 > 0:44:43which you can time and therefore, really active central heating.
0:44:43 > 0:44:45But, I think, probably the most prominent thing
0:44:45 > 0:44:46is we've put in a new fire.
0:44:46 > 0:44:49This is an electric fire. Adds a bit of a statement.
0:44:49 > 0:44:51We've got a nice surround
0:44:51 > 0:44:53and, really, quite a change from that hideous, old,
0:44:53 > 0:44:56decrepit fireplace that was in here before.
0:44:56 > 0:44:57So, a number of changes,
0:44:57 > 0:45:01but no kitchen, which remains next door.
0:45:01 > 0:45:03The kitchen's had quite a makeover.
0:45:03 > 0:45:08We took out the old units, took back all the wallpaper,
0:45:08 > 0:45:11put in a new kitchen suite, did an awful lot of painting,
0:45:11 > 0:45:13changed one of the windows as well
0:45:13 > 0:45:15and then generally did an awful lot of cleaning
0:45:15 > 0:45:17to make it look a bit more spick and span.
0:45:19 > 0:45:22With bathroom cleaned, re-plastered and redecorated,
0:45:22 > 0:45:24the flat is now greatly improved
0:45:24 > 0:45:27and, personally, I always thought keeping the layout the same
0:45:27 > 0:45:28was the best option.
0:45:30 > 0:45:33What was the deciding factor for Sara?
0:45:33 > 0:45:34# Make up your mind... #
0:45:34 > 0:45:37A two-bed would have been a nice option for the flat,
0:45:37 > 0:45:40but, at the end of the day, it had to come down to could I do it in time?
0:45:40 > 0:45:42And there were two issues with converting it.
0:45:42 > 0:45:45First of all, I needed to get a variation of the lease,
0:45:45 > 0:45:47but it would take about five to eight weeks.
0:45:47 > 0:45:48Then, on top of that,
0:45:48 > 0:45:50we found out that there was an issue with the lease
0:45:50 > 0:45:53and that actually dragged on for some time
0:45:53 > 0:45:55and in the end, it just became uneconomical
0:45:55 > 0:45:56for me to convert it to a two-bed
0:45:56 > 0:46:00and we took the decision to make it as a nice one-bed for sale.
0:46:00 > 0:46:04And changing the layout wasn't the only alteration she decided against.
0:46:04 > 0:46:07It would have been very nice to have a combi boiler in here,
0:46:07 > 0:46:08but being on the third floor,
0:46:08 > 0:46:10it may have meant putting up scaffolding
0:46:10 > 0:46:12in order to get the flue out through the wall
0:46:12 > 0:46:15and it was working out to be really quite expensive,
0:46:15 > 0:46:18so we decided, in the end, that, while it's nice to have,
0:46:18 > 0:46:19it wasn't a necessity
0:46:19 > 0:46:21and, actually, what was needed was some heating,
0:46:21 > 0:46:24so we put in electric radiators and we put in a new fire.
0:46:25 > 0:46:27# Living by numbers
0:46:29 > 0:46:31# Living by numbers now. #
0:46:33 > 0:46:37So, the numbers didn't work to make the changes pay,
0:46:37 > 0:46:40but who did the work that was carried out?
0:46:40 > 0:46:42My role, really, has been, I think, twofold.
0:46:42 > 0:46:44First of all was project management,
0:46:44 > 0:46:46so getting all the different contractors in.
0:46:46 > 0:46:49And then, after that, it's been myself and also my husband
0:46:49 > 0:46:52working really quite long hours, doing the painting and the cleaning
0:46:52 > 0:46:54and just really putting the finish on the flat.
0:46:54 > 0:46:57And what about Fluffbert? Did he contribute at all?
0:46:57 > 0:47:00Fluffbert's been here, I'd say, in the last week,
0:47:00 > 0:47:01pretty much continually,
0:47:01 > 0:47:03but when we had the bigger, heavier work going on,
0:47:03 > 0:47:07it really wasn't appropriate for him, so, at that point, he stayed at home.
0:47:07 > 0:47:09Smart animal. Keep clear of the heavy work.
0:47:09 > 0:47:12Best not to be seen just as a dogsbody, really.
0:47:14 > 0:47:16I think, in terms of how much we spent,
0:47:16 > 0:47:18we spent about 8,500
0:47:18 > 0:47:20and that includes things like a rewire and a brand-new kitchen
0:47:20 > 0:47:22and some plastering as well.
0:47:22 > 0:47:24Um, but it was very much a case of what needs to be done
0:47:24 > 0:47:26rather than what I would like to do
0:47:26 > 0:47:28because this is actually quite a lovely flat
0:47:28 > 0:47:31and you could spend a fortune making it into a beautiful flat,
0:47:31 > 0:47:33but I didn't think I'd get that money back.
0:47:35 > 0:47:36An eight and a half grand spend
0:47:36 > 0:47:40on top of Sara's £226,000 purchase price
0:47:40 > 0:47:45takes her total outlay to £234,500.
0:47:45 > 0:47:48But was she right to keep this as a one-bedroom flat?
0:47:48 > 0:47:50What do two local estate agents think?
0:47:50 > 0:47:52First, the agent who saw it last time.
0:47:54 > 0:47:56It's completely transformed
0:47:56 > 0:47:58from when I was here a few months ago.
0:47:58 > 0:48:01Pleasant surprise. All well and good.
0:48:01 > 0:48:04The property has been decorated in neutral tones
0:48:04 > 0:48:07and the new added kitchen gives a sense of luxury,
0:48:07 > 0:48:10which will maximise the appeal to the wider market.
0:48:10 > 0:48:11The selling features from this property,
0:48:11 > 0:48:14as far as I'm concerned, is that, in every single room,
0:48:14 > 0:48:17there are exceptional views over London and also green spaces
0:48:17 > 0:48:19and I think that really is a huge attribute
0:48:19 > 0:48:21to this particular property.
0:48:21 > 0:48:23Sara's view, though, is to sell the flat on,
0:48:23 > 0:48:26but could it make for a better investment as a rental property?
0:48:27 > 0:48:30The property would achieve, on the rental market,
0:48:30 > 0:48:33between £1,200-£1,250 per calendar month.
0:48:33 > 0:48:35I'd expect to achieve a rent
0:48:35 > 0:48:37of round about £1,200 per calendar month.
0:48:38 > 0:48:39The agent who saw it before
0:48:39 > 0:48:42has increased significantly her rental values
0:48:42 > 0:48:44as she thinks the quality is very good
0:48:44 > 0:48:48and also said this is a very busy rental period.
0:48:48 > 0:48:51So, what does Sara make of those valuations?
0:48:51 > 0:48:52I think those are fine.
0:48:52 > 0:48:55It's not something that we're looking to do at this point in time,
0:48:55 > 0:48:59but if it wasn't to sell, then perhaps that could be an option,
0:48:59 > 0:49:00but it's not really for us.
0:49:00 > 0:49:02And £1,200 per calendar month
0:49:02 > 0:49:06would generate a rental yield above 6%,
0:49:06 > 0:49:10but having sunk £234,500 into this flat,
0:49:10 > 0:49:12what kind of resale return might she achieve?
0:49:13 > 0:49:15If I was marketing this property today,
0:49:15 > 0:49:20I'd place it on the open market for an asking price of around £275,000.
0:49:20 > 0:49:22The property would resell, on the current market,
0:49:22 > 0:49:26between £275,000 and £285,000.
0:49:26 > 0:49:29That's actually spot-on with what I was thinking as well,
0:49:29 > 0:49:31so I'm really glad to hear those numbers
0:49:31 > 0:49:33and they've reassured me that I was right on the market.
0:49:33 > 0:49:35Yes, that's not bad.
0:49:35 > 0:49:37Those figures could see a pre-tax profit
0:49:37 > 0:49:43of between £40,500 and £50,500 and that's just in two months.
0:49:43 > 0:49:46Well, that's not a bad return on her investment,
0:49:46 > 0:49:49so perhaps property development is the way forward for Sara.
0:49:52 > 0:49:54What I've really enjoyed about this is the flexibility.
0:49:54 > 0:49:56I've been able to take a couple of holidays.
0:49:56 > 0:49:59I've also worked some very long hours with my husband
0:49:59 > 0:50:00getting the place up to scratch,
0:50:00 > 0:50:02but it's been very much on my own timetable
0:50:02 > 0:50:05and I've really enjoyed that after many years in the corporate world,
0:50:05 > 0:50:08so I think I wouldn't mind doing another one at least
0:50:08 > 0:50:11before I perhaps tip my hat back into the corporate world.
0:50:16 > 0:50:19DION: It was within walking distance of Derby city centre
0:50:19 > 0:50:21where we first saw this two-bed, mid-terrace house
0:50:21 > 0:50:25that was, well, fully renovated and practically ready to go.
0:50:25 > 0:50:28This is... This is brand-new.
0:50:28 > 0:50:31There's even a sticker on the oven just there.
0:50:33 > 0:50:37So, with a new fitted kitchen, downstairs shower room,
0:50:37 > 0:50:40two bedrooms - one of which was en suite -
0:50:40 > 0:50:43all recently refurbished, there wasn't really much to alter.
0:50:43 > 0:50:49# And I can't find a reason to change... #
0:50:52 > 0:50:54And this pick-up-the-keys-and-move-in property
0:50:54 > 0:50:57was bought at auction for £98,000
0:50:57 > 0:51:00by husband and wife team Susie and Simon
0:51:00 > 0:51:02as their first property development project together.
0:51:04 > 0:51:06Was this the kind of property you were looking for?
0:51:06 > 0:51:08- For a first time, yes...- Yeah.
0:51:08 > 0:51:10..cos it was a first-time investment,
0:51:10 > 0:51:12so didn't want anything too taxing,
0:51:12 > 0:51:15too difficult and this one ticks all the boxes.
0:51:15 > 0:51:17- And more, I think, to be honest with you.- And more.
0:51:17 > 0:51:20Yes, as first-time property development projects go,
0:51:20 > 0:51:22this was pretty straightforward.
0:51:22 > 0:51:28# That's why I'm easy
0:51:28 > 0:51:35# I'm easy like Sunday morning. #
0:51:35 > 0:51:38And with a few tweaks in mind with doors, decor
0:51:38 > 0:51:42and minor room adjustments, plus a desire to rev up the chainsaw
0:51:42 > 0:51:44and cut down the trees overlooking the garden,
0:51:44 > 0:51:47they had given themselves a budget of £5,000
0:51:47 > 0:51:51and hoped to get to the sales market in four to six weeks.
0:51:54 > 0:51:58But now, ten weeks later, we're back to see if we can spot the changes.
0:52:01 > 0:52:04Well, I'm pretty sure outside's the same.
0:52:04 > 0:52:05What about inside?
0:52:09 > 0:52:14The fireplace has been changed to a more modern, contemporary look.
0:52:14 > 0:52:15Internal doors have been changed.
0:52:21 > 0:52:24And in the kitchen, well, that needed nothing more than a lick of paint.
0:52:29 > 0:52:31Um, and in the bathroom,
0:52:31 > 0:52:33there was the washing machine, which was all boxed in.
0:52:33 > 0:52:37That's been removed, which exposed some pretty ugly damp
0:52:37 > 0:52:39and some rot, so that's all had to be sorted,
0:52:39 > 0:52:41the pipe work taken away.
0:52:41 > 0:52:44Getting rid of the rot meant pulling up the laminate flooring
0:52:44 > 0:52:47and replacing it is still to be done.
0:52:48 > 0:52:49And the two bedrooms?
0:52:49 > 0:52:51Well, they remain untouched.
0:52:56 > 0:52:58The biggest, most important thing to be done was the boiler,
0:52:58 > 0:53:00which was old and very big,
0:53:00 > 0:53:03so that was replaced for a modern combi boiler.
0:53:08 > 0:53:10In the garden, the conifer trees have been removed
0:53:10 > 0:53:13and it's been tidied up and levelled.
0:53:14 > 0:53:17The trees were actually in the neighbours' garden,
0:53:17 > 0:53:20so they went 50-50 on the cost to have them removed.
0:53:20 > 0:53:22A few little bits and pieces to be done,
0:53:22 > 0:53:24but by and large, it's completed.
0:53:25 > 0:53:28And it's all looking pretty good, but then, it was before.
0:53:28 > 0:53:30Mind you, remember this?
0:53:31 > 0:53:32Excuse me one minute.
0:53:35 > 0:53:39HE SIGHS If you can still see me...
0:53:41 > 0:53:44..you're going to need to change these doors for definite.
0:53:44 > 0:53:47# Don't leave me this way. #
0:53:47 > 0:53:50The doors were like a concertina door,
0:53:50 > 0:53:54um, and basically, they didn't shut, so you could see straight through
0:53:54 > 0:53:57and now there's just a normal, modern door on there.
0:53:58 > 0:54:01Well, that's a relief for all concerned.
0:54:01 > 0:54:07# And I see you no more. #
0:54:09 > 0:54:12But who would we have seen working on this house?
0:54:13 > 0:54:15The works have been completed by different people.
0:54:15 > 0:54:18The boiler was obviously done by a qualified Gas Safe guy
0:54:18 > 0:54:19that we know well.
0:54:19 > 0:54:23Painting and decorating has been done by father-in-law, kindly.
0:54:23 > 0:54:26Obviously, we've had a tree surgeon to remove all the conifers.
0:54:26 > 0:54:30And the other works have been done by Susie and by the father-in-law
0:54:30 > 0:54:31and just tidying up and weeding.
0:54:31 > 0:54:34Um, I haven't been here as much as I'd like to have been
0:54:34 > 0:54:36cos I've been working away from home,
0:54:36 > 0:54:38so Susie's been project managing it
0:54:38 > 0:54:41and getting a lot of the works done herself.
0:54:41 > 0:54:45But one of the bits Susie didn't have to project manage was the cellar.
0:54:45 > 0:54:48They decided against converting it into a utility room
0:54:48 > 0:54:51as the costs were too high, which I think is a bit of a shame,
0:54:51 > 0:54:54but property development is all about maximising profit.
0:54:56 > 0:54:59Had an original budget of five K
0:54:59 > 0:55:02and that was just in case there was anything unforeseen
0:55:02 > 0:55:04that we hadn't come across.
0:55:04 > 0:55:07We've actually spent a total of £3,000
0:55:07 > 0:55:09and half of that was the boiler.
0:55:09 > 0:55:11The rest has been for fireplace
0:55:11 > 0:55:13and obviously tradesmen coming round, etc.
0:55:16 > 0:55:18£3,000 on top of
0:55:18 > 0:55:20their 98 grand purchase price
0:55:20 > 0:55:23takes their total cost to £101,000.
0:55:23 > 0:55:26So, despite relatively minor changes,
0:55:26 > 0:55:28have they bagged themselves a bargain?
0:55:29 > 0:55:31What did two local property experts think?
0:55:31 > 0:55:34First, the expert who saw it last time.
0:55:35 > 0:55:37It's the second time that I've been in the property
0:55:37 > 0:55:40and I think that the changes have made the most of what's here.
0:55:40 > 0:55:42However, there wasn't really a lot to do.
0:55:42 > 0:55:44The shape of it, the structure - it was already here,
0:55:44 > 0:55:47but it's been enhanced since my last visit.
0:55:47 > 0:55:49I think the layout works particularly well.
0:55:49 > 0:55:51In fact, I think it's probably the best way
0:55:51 > 0:55:52to lay out a property like this.
0:55:52 > 0:55:55Usually, these properties have small kitchens
0:55:55 > 0:55:59and only one bathroom, but with the current format, layout,
0:55:59 > 0:56:02it allows for two bathrooms and a decent-sized kitchen
0:56:02 > 0:56:03with space for a table.
0:56:03 > 0:56:07I would say the selling points of this property are its location.
0:56:07 > 0:56:09We're within easy reach of the city centre.
0:56:09 > 0:56:12We're on the edge of the Strutts Park Conservation Area
0:56:12 > 0:56:15with the fantastic Darley Park right on your doorstep.
0:56:15 > 0:56:17Susie and Simon bought this house to sell on,
0:56:17 > 0:56:19but if they couldn't immediately find a buyer,
0:56:19 > 0:56:22what kind of rental income might it generate?
0:56:22 > 0:56:25I would say, if this property were offered for rent
0:56:25 > 0:56:27on the current market, I would anticipate it being let
0:56:27 > 0:56:29at £550 per calendar month.
0:56:29 > 0:56:32To rent this property out, it would rent rather quickly.
0:56:32 > 0:56:35I would expect £550 per calendar month.
0:56:35 > 0:56:38- Yeah, good.- Yeah, about right. - Yeah, I think that's...
0:56:38 > 0:56:40It's not something we're looking at initially,
0:56:40 > 0:56:42but if we don't sell,
0:56:42 > 0:56:44then you've got to entertain the idea of renting,
0:56:44 > 0:56:47so that's worth looking at and they're good figures.
0:56:48 > 0:56:54£550 per calendar month would mean a reasonable yield of 6.5%.
0:56:54 > 0:56:56But what about the all-important resale value?
0:56:58 > 0:57:00I would say, if this property were offered for sale
0:57:00 > 0:57:02on today's market, I would anticipate it would achieve
0:57:02 > 0:57:05somewhere in the region of £130,000.
0:57:05 > 0:57:07I think, if I was putting this property on the market
0:57:07 > 0:57:12for sale today, I'd be looking at achieving roughly £115,000.
0:57:12 > 0:57:14- Pretty pleased with both of those figures.- Yeah.
0:57:14 > 0:57:16- Definitely the top end, we'd be more...- Yeah, the top end.
0:57:16 > 0:57:20Yeah, more inclined to go towards that, obviously,
0:57:20 > 0:57:23but maybe halfway between the two is probably about where it's worth.
0:57:24 > 0:57:27Well, those values could see a pre-tax profit
0:57:27 > 0:57:30of between 14 and 29 grand, which isn't bad,
0:57:30 > 0:57:33considering how little work they had to do on this house.
0:57:33 > 0:57:36So, overall, how did they find their first experience
0:57:36 > 0:57:39in property development?
0:57:39 > 0:57:41I enjoyed it.
0:57:41 > 0:57:45First house, there was quite a minimal amount of work needed,
0:57:45 > 0:57:47so, therefore, it was a good way to start off.
0:57:47 > 0:57:50Learn from a few mistakes and then take it into the next one
0:57:50 > 0:57:54and maybe a little bit more bold and ambitious with that project.
0:57:56 > 0:57:59Lots of people buying all kinds of property
0:57:59 > 0:58:01- and there are more every day. - So, come and join us next time
0:58:01 > 0:58:04for some more auction action on Homes Under The Hammer.
0:58:04 > 0:58:06- But it's bye for now. - Bye-bye.- Goodbye.