0:00:02 > 0:00:03Hello, and welcome to the show.
0:00:03 > 0:00:06Some investment properties need a big spend for a big return.
0:00:06 > 0:00:07Yeah, and others, they just need
0:00:07 > 0:00:09a bit of TLC and then they'll do you proud.
0:00:09 > 0:00:12The trick, of course, is knowing which one to go for
0:00:12 > 0:00:15and when you do know, why not try buying your home under the hammer?
0:00:42 > 0:00:44If you buy wisely with the property market,
0:00:44 > 0:00:45it can give you great returns.
0:00:45 > 0:00:47Yeah, so did today's buyers buy wisely?
0:00:47 > 0:00:49Let's see what they bought.
0:00:50 > 0:00:54In Barnet, I'm holding out on you over this three-bed semi.
0:00:54 > 0:00:58There's more to this rather smart, well-kept house than meets the eye.
0:01:00 > 0:01:03Meanwhile, I'm not holding out on you on this three-bed semi
0:01:03 > 0:01:05in Madeley, Shropshire.
0:01:05 > 0:01:08Oh, boy, have I got something to show you at the back of the property.
0:01:08 > 0:01:11While in Nottingham, I'm certainly not holding back
0:01:11 > 0:01:13when it comes to budget busting.
0:01:13 > 0:01:15Do you spend it on the bathroom, in the kitchen,
0:01:15 > 0:01:18or do you spend it on the loft?
0:01:18 > 0:01:21Or do you do it all?
0:01:21 > 0:01:23All these properties were bought at auction.
0:01:23 > 0:01:25We'll find out who bought them and how much they paid for them
0:01:25 > 0:01:27when these homes went under the hammer.
0:01:27 > 0:01:29- HAMMER BANGS - You bought it. Well done.
0:01:34 > 0:01:38Yes, it might be the last stop in Zone Five of the Northern Line, London,
0:01:38 > 0:01:43but Barnet is nevertheless a popular area to buy property.
0:01:43 > 0:01:45There's regenerations and improvement all over
0:01:45 > 0:01:48the shop in Barnet, making it even more desirable.
0:01:49 > 0:01:52This residential road is in a great spot.
0:01:52 > 0:01:54It's only a two-minute walk from the station
0:01:54 > 0:01:57and 15 minutes from the high street.
0:01:57 > 0:02:00So there's plenty right on your doorstep around here.
0:02:00 > 0:02:04And speaking of doorsteps, here is the property I'm about to see.
0:02:04 > 0:02:09It's a three-bedroom semi, it had a guide price of £390,000.
0:02:09 > 0:02:12However, there's more to this rather smart,
0:02:12 > 0:02:14well-kept house than meets the eye.
0:02:14 > 0:02:16I will reveal all later.
0:02:16 > 0:02:19For the time being, let's go and have a look around.
0:02:23 > 0:02:26Well, this house certainly feels solid, well built...
0:02:26 > 0:02:30I think, once you've got rid of this wallpaper and the carpet,
0:02:30 > 0:02:34straightaway you're going to have a very impressive hallway.
0:02:34 > 0:02:36I love the character already.
0:02:36 > 0:02:42And look at these! Now, I remember as a little girl in my parents' house having these!
0:02:42 > 0:02:45Room dividers, don't you know. Absolutely beautiful.
0:02:45 > 0:02:50Painted up with a really modern colour, they will look fantastic.
0:02:50 > 0:02:51What a great room.
0:02:51 > 0:02:55It's nice that it's already been opened up, really sunny, double aspect.
0:02:55 > 0:02:57Oh! Look at this fireplace! Come over here.
0:02:57 > 0:02:59It's like a face.
0:02:59 > 0:03:01You've got the two eyes,
0:03:01 > 0:03:03a nose and a rather sort of...
0:03:03 > 0:03:05miserable-looking mouth down there.
0:03:05 > 0:03:09I'm not sure whether I would keep that. Be up to you.
0:03:09 > 0:03:13But there's potential to put something really beautiful there.
0:03:13 > 0:03:16Um, a little bit of a disturbing crack up there.
0:03:16 > 0:03:20I'd maybe get a structural engineer in to have a look at that.
0:03:20 > 0:03:22That could be a little bit worrying.
0:03:22 > 0:03:25And of course, look, every house has got to have one!
0:03:25 > 0:03:26The old serving hatch!
0:03:27 > 0:03:30Hello!
0:03:30 > 0:03:32Great property, loads of potential.
0:03:32 > 0:03:35I think you could really get your teeth into a house like this.
0:03:37 > 0:03:38# Hello
0:03:40 > 0:03:43# Is it me you're looking for?
0:03:44 > 0:03:46# I can see it in your eyes
0:03:48 > 0:03:50# I can see it in your smile
0:03:52 > 0:03:56# You're all I've ever wanted
0:03:56 > 0:03:59# And my arms are open wide. #
0:04:00 > 0:04:03OK, OK, enough of that silliness, Lionel!
0:04:03 > 0:04:06This house is in great but dated shape
0:04:06 > 0:04:09and the proportions are fantastic, except for
0:04:09 > 0:04:11a curiously small kitchen.
0:04:13 > 0:04:17Now, upstairs, there are three bedrooms.
0:04:17 > 0:04:21Two of them are a really good size, especially this master bedroom.
0:04:22 > 0:04:25Although there is a third, which is a bit of a box room.
0:04:26 > 0:04:29There's a separate bathroom and a loo
0:04:29 > 0:04:34which isn't ever really ideal, and I definitely want to change that.
0:04:34 > 0:04:38It does come with a garage and a parking spot at the front,
0:04:38 > 0:04:42which is great for a family-sized property such as this.
0:04:42 > 0:04:45Plus there's a pretty good-sized garden out the back,
0:04:45 > 0:04:49which brings us full circle to chat about that little secret
0:04:49 > 0:04:50I mentioned earlier!
0:04:52 > 0:04:56Now, I often talk about extension potential in the properties that I view.
0:04:56 > 0:05:01This time, this house already comes with planning permission to extend.
0:05:01 > 0:05:04And this is no small extension, oh, no!
0:05:04 > 0:05:06Take a little look at this.
0:05:06 > 0:05:10Wow! It goes all the way out to the back, around at the side
0:05:10 > 0:05:13and to the front and it even goes up into the loft.
0:05:13 > 0:05:18So all in all, you get a five-bedroom, four-bathroom house.
0:05:18 > 0:05:22I already like this property. But wow, it could be really spectacular.
0:05:24 > 0:05:28Planning permission in place really propels this house to the next level.
0:05:28 > 0:05:32The large kitchen/diner on the ground floor would be ideal
0:05:32 > 0:05:35and two of the four bedrooms on the first floor would have en-suites,
0:05:35 > 0:05:38but there will also be a family bathroom.
0:05:38 > 0:05:42And utilising that loft space creates bedroom number five
0:05:42 > 0:05:44and bathroom number four. Wow!
0:05:46 > 0:05:50Having planning permission in place means whoever purchases
0:05:50 > 0:05:52this property doesn't have to spend the time
0:05:52 > 0:05:56and money going through all the red tape to get to it.
0:05:56 > 0:05:59Yes, it will cost money to carry out this large extension,
0:05:59 > 0:06:03but I know there's a demand in this area, so it might just be worth it
0:06:03 > 0:06:05if you want to make a big profit.
0:06:05 > 0:06:10We invited a local estate agent along to hear his opinion on this
0:06:10 > 0:06:15property, which had a guide price of £390,000 plus.
0:06:15 > 0:06:19Planning permission on a property already in place is quite rare.
0:06:19 > 0:06:23Sometimes you might get someone who has tried to obtain planning
0:06:23 > 0:06:28and it's now expired, but to buy a property on the open market
0:06:28 > 0:06:31with planning permission in place is quite rare and very appealing.
0:06:31 > 0:06:33The plans look excellent.
0:06:33 > 0:06:36They would really, really add to the property.
0:06:36 > 0:06:39If I was looking to do the extension work myself,
0:06:39 > 0:06:41a double-storey side
0:06:41 > 0:06:44and rear extension with a loft conversion as well,
0:06:44 > 0:06:46I'd probably be looking to spend
0:06:46 > 0:06:49in the region of £170,000-£200,000.
0:06:49 > 0:06:52Well, that's a massive sum. Almost half the guide price alone.
0:06:52 > 0:06:54Is it worth it, then?
0:06:54 > 0:06:57What kind of valuations are we looking at for that extended
0:06:57 > 0:07:00five-bed property? Rental first.
0:07:00 > 0:07:03Once this property's renovated and fully extended, you're looking
0:07:03 > 0:07:09to achieve in the region of about £1,800-£1,900 per calendar month.
0:07:09 > 0:07:12And what about resale valuation as a five-bed?
0:07:12 > 0:07:16This property, once it's fully extended and fully refurbished,
0:07:16 > 0:07:21I would expect to achieve in the region of £775-£800,000.
0:07:21 > 0:07:25Yes, it does need updating, but I really like this property.
0:07:25 > 0:07:28It's great! And with so much further potential, you don't even need
0:07:28 > 0:07:32to go through the planning process if you want to make it bigger.
0:07:32 > 0:07:36Let's head to the auction and find out who fancied buying in Barnet.
0:07:39 > 0:07:43Who'd like to kick off on this? I don't know, 450?
0:07:44 > 0:07:46I'm not going to go below 450.
0:07:46 > 0:07:48450 anywhere?
0:07:48 > 0:07:54450, I'll take it, just on the outside, 450, 455, sir?
0:07:54 > 0:08:00460, 465, 470, 475,
0:08:00 > 0:08:03480, 485, 490...
0:08:04 > 0:08:11..495, 500, 505, 510...
0:08:12 > 0:08:15..515, 520...
0:08:17 > 0:08:20..525, 530...
0:08:21 > 0:08:23..535, 540...
0:08:26 > 0:08:30..540, 545, 550...
0:08:31 > 0:08:34..550, 555...
0:08:36 > 0:08:39..555, 551...
0:08:40 > 0:08:42551 elsewhere?
0:08:42 > 0:08:47If not, it's going at 550, first time, second time...
0:08:47 > 0:08:51third and last time, if you're all done...
0:08:51 > 0:08:52HAMMER BANGS
0:08:52 > 0:08:54Sold, 550.
0:08:55 > 0:08:56Whoa!
0:08:56 > 0:08:58Now, I know London prices are scary, but that winning bid of
0:08:58 > 0:09:04550,000 was a stonking 160 grand over the guide price
0:09:04 > 0:09:11and it was made by Ricken, who was at the auction with his mum, Jasumati, and his dad, Rambai.
0:09:11 > 0:09:13Together they run a construction company.
0:09:13 > 0:09:15Ricken was determined to get this property,
0:09:15 > 0:09:18so I was determined to find out why.
0:09:18 > 0:09:20Ricken, congratulations.
0:09:20 > 0:09:23- Thank you very much. - So, what was going on?
0:09:23 > 0:09:26You paid £550,000 on auction day.
0:09:26 > 0:09:28How much did you want this house?
0:09:28 > 0:09:31We've been looking for a while and I just wanted to get my teeth
0:09:31 > 0:09:34into something and I just looked at it and fell in love with it.
0:09:34 > 0:09:38- But you did go for it a bit on auction day, didn't you? - I did, I did.
0:09:38 > 0:09:40- Did you get carried away a little bit?- I did, it was my first auction.
0:09:40 > 0:09:42I just didn't want to lose it.
0:09:42 > 0:09:45- I had to win it at all costs. - Really?- Not the best strategy...
0:09:45 > 0:09:47- Your heart has ruled your head? - It has.
0:09:47 > 0:09:51Obviously, it's all about making money for you, isn't it? Why are you doing this?
0:09:51 > 0:09:54Well, lucky for me, I'm in the trade, I run my own construction company,
0:09:54 > 0:09:58so I could afford to go over a little.
0:09:58 > 0:10:01- Because you can cut back on costs? - I can save the costs.
0:10:01 > 0:10:04And this one, it's a beautiful property.
0:10:04 > 0:10:07Like, as soon as you walk in, you kind of fall in love with it.
0:10:07 > 0:10:11But interestingly, this was sold to auction WITH planning permission.
0:10:11 > 0:10:15- Now, is that sort of what interested you and whet your appetite?- Exactly.
0:10:15 > 0:10:18The timing... For me, it was timings.
0:10:18 > 0:10:21The project just fits in with my timings at work.
0:10:21 > 0:10:23- End of one project, start of a new one.- Really?
0:10:23 > 0:10:26Planning permission already... just makes it easier.
0:10:26 > 0:10:27So who's funded this?
0:10:27 > 0:10:29So, the main backing's from my parents.
0:10:29 > 0:10:33- Which is amazing!- Yes.- Love the Bank of Mum and Dad!
0:10:33 > 0:10:35Bank of Mum and Dad has come into use.
0:10:35 > 0:10:39Fabulous! So we're very grateful Mum and Dad have stumped up for this.
0:10:39 > 0:10:41- Yes.- What have you got to do to pay them back in any way?
0:10:41 > 0:10:44- Have you got to pay them back? - Not really, no.
0:10:44 > 0:10:47We're just going to add it to the portfolio, so Mum and Dad have a
0:10:47 > 0:10:52portfolio that they've had for years and this is just an addition to it.
0:10:52 > 0:10:55In the last couple of years when I started my company,
0:10:55 > 0:10:59they saw the potential and they trust me.
0:10:59 > 0:11:04- So planning permission is for a five-bed, four bathrooms.- Yes.
0:11:04 > 0:11:06But I was thinking... I was looking at the plans
0:11:06 > 0:11:10and I was thinking to change it to a six-bed, three-bath. But...
0:11:10 > 0:11:12- Really?- But I'm not 100% sure.
0:11:12 > 0:11:16You see, I'm not 100% sure a six-bedroom house along this road
0:11:16 > 0:11:18is what you need.
0:11:18 > 0:11:21I think you'd be better off to put another bathroom in, actually.
0:11:21 > 0:11:24Add in the bathroom to one of the bedrooms. I don't know.
0:11:24 > 0:11:26I'm not sure either. My mind's not made up.
0:11:26 > 0:11:29Let's see what the estate agents say,
0:11:29 > 0:11:31we've still got time to think about it.
0:11:31 > 0:11:34It's not major work to change it into a bathroom, so...
0:11:34 > 0:11:37Tweaking the plans could end up costing time,
0:11:37 > 0:11:40which might spoil the good timing of the project for Ricken,
0:11:40 > 0:11:43and he's not one to let the grass grow under his feet.
0:11:43 > 0:11:48The materials have been ordered, as soon as the film crew leave, Monday morning...
0:11:48 > 0:11:51Wahey! You're going to kick us out and then we're going to start?
0:11:51 > 0:11:54We should start, yeah. The neighbours have been informed and...let's go.
0:11:54 > 0:11:58# Yeah, yeah, yeah, working! Work! #
0:11:58 > 0:12:00Don't be fooled by Ricken's youth.
0:12:00 > 0:12:03He's very experienced in property renovation,
0:12:03 > 0:12:07and while this is a challenge, he's taking it in his stride.
0:12:07 > 0:12:10With Ricken himself mucking in on a daily basis, he hopes
0:12:10 > 0:12:14that he and his team will get the work completed in six to seven months
0:12:14 > 0:12:20to the tune of £110,000, with a 10% contingency plan.
0:12:20 > 0:12:24Come on, then, how much do you think this house will be worth once it's had your fairy dust
0:12:24 > 0:12:26sprinkled all over it?
0:12:26 > 0:12:29I would hope to achieve something around 750.
0:12:29 > 0:12:31Wow.
0:12:31 > 0:12:34But... Maybe even more, depending on the finish, the end product.
0:12:34 > 0:12:38But around 750 I would say would be reasonable
0:12:38 > 0:12:40for a five-bed, four-bathroom property
0:12:40 > 0:12:43to the standard that we should get to.
0:12:43 > 0:12:47- This house is going to be maxed out whatever.- Yeah, yeah.
0:12:47 > 0:12:49- Are you excited by that? - I'm really excited about it.
0:12:49 > 0:12:51You're going to want to keep this, aren't you?
0:12:51 > 0:12:53- This is another thing we discussed.- Ooh!
0:12:53 > 0:12:55My parents said if it's really nice, we'll keep it.
0:12:55 > 0:12:58Because my brother needs a new place to stay,
0:12:58 > 0:13:01he's just newly engaged, so he needs a place, so let's see.
0:13:01 > 0:13:03So you're going to be putting all this hard work and love in
0:13:03 > 0:13:05for your brother to have!
0:13:05 > 0:13:08Well, I'm really keen to get him out of the house!
0:13:08 > 0:13:10So it might be worth it! Let's see.
0:13:10 > 0:13:12- THEY LAUGH - It's been lovely meeting you.
0:13:12 > 0:13:15Good luck with this project and I cannot wait to see what you do to it.
0:13:15 > 0:13:18- Thanks very much.- Well done, thank you.
0:13:18 > 0:13:22Well, Ricken got carried away in the auction room. That is clear.
0:13:22 > 0:13:26But I hope he doesn't get quite so carried away with his budget during this project.
0:13:26 > 0:13:29It's all very well falling in love with a property,
0:13:29 > 0:13:32but you need to think with your head and not your heart
0:13:32 > 0:13:34if you're going to succeed in the world of developing.
0:13:34 > 0:13:38Stay tuned and you can see how he gets on, later in the programme.
0:13:50 > 0:13:55Today I'm in Madeley, a town overlooked by perhaps Shropshire's
0:13:55 > 0:13:58best-known natural landmark, the Wrekin.
0:13:58 > 0:14:01Locals claim that depending on which side you view it,
0:14:01 > 0:14:04the Wrekin can look like a hill or a mountain.
0:14:06 > 0:14:09I'm off to visit a local housing estate, which thankfully
0:14:09 > 0:14:12doesn't involve such a climb.
0:14:12 > 0:14:16Well, with a magnificent view of the local landmark, the Wrekin,
0:14:16 > 0:14:18is the property I'm here to see.
0:14:18 > 0:14:24£85,000 was the guide price for this semidetached house.
0:14:24 > 0:14:27Unlike the Wrekin, though,
0:14:27 > 0:14:31this looks like it's pretty much the same whichever side you view it from.
0:14:36 > 0:14:40So, into the property, and a fairly classic layout,
0:14:40 > 0:14:43stairs up to your bedrooms there... Oh, a bit of a nasty
0:14:43 > 0:14:46sign of damp down there, you want to explore that
0:14:46 > 0:14:48and find out what's causing that.
0:14:48 > 0:14:51But a large front living-room area here...
0:14:51 > 0:14:53Fantastic wallpaper! Wow!
0:14:53 > 0:14:57But you've got the gas fire, obviously you want to have that checked out...
0:14:57 > 0:15:00Looks like you've got central heating too, which is good, the double-glazed windows...
0:15:00 > 0:15:03It's all starting to come together, that's for sure.
0:15:03 > 0:15:07It's a nice-sized space, and then again, a very classic layout.
0:15:07 > 0:15:08Though into your kitchen.
0:15:08 > 0:15:11Good size, and the thing about ex-local-authority houses
0:15:11 > 0:15:16is they were just built-to-be-lived-in houses and still are.
0:15:16 > 0:15:19And they make a great choice, as you know. I definitely think that.
0:15:19 > 0:15:21So, this kitchen, it's a good size,
0:15:21 > 0:15:25it's got space for a bit of a dining area there, little utility area.
0:15:25 > 0:15:28Downstairs loo over there, which is good, views out onto the back garden.
0:15:28 > 0:15:31I mean, what is there not to like?
0:15:31 > 0:15:35So, a good start to a well-proportioned house.
0:15:35 > 0:15:37So far, so good.
0:15:37 > 0:15:40So, upstairs and you've got your three bedrooms.
0:15:40 > 0:15:45The smaller one there, double one there and another double one at the front.
0:15:45 > 0:15:46They're a reasonable size.
0:15:46 > 0:15:49One area you are going to have to spend some money though is
0:15:49 > 0:15:53the bathroom, which, as you can see, just needs a little bit of updating.
0:15:53 > 0:15:57Oh, boy. But spend some money in there, and you'll definitely recoup
0:15:57 > 0:16:01that in terms of the value and certainly the appeal of the property.
0:16:01 > 0:16:05But in the front bedroom here, more signs of some damp.
0:16:05 > 0:16:10Now is this serious? Well, it's seriously icky, that's for sure.
0:16:10 > 0:16:14My guess though is that is classic damp that is created
0:16:14 > 0:16:18when the house is just left with nobody in it, with the central heating off
0:16:18 > 0:16:22over the dark, cold, damp winter period, which is where we are now.
0:16:22 > 0:16:24So, I don't think that's something to worry about.
0:16:24 > 0:16:27Get the central heating on, get the house lived in,
0:16:27 > 0:16:29open the windows and that will be sorted.
0:16:30 > 0:16:33Obviously it's worth getting that damp checked,
0:16:33 > 0:16:36but with any luck, a bit of modernisation and decoration
0:16:36 > 0:16:39and the interior of this house is good to go.
0:16:39 > 0:16:40And that's not all.
0:16:41 > 0:16:45These former local-authority houses always seem to be
0:16:45 > 0:16:50built on generous plots, and here, there's room for off-street parking.
0:16:50 > 0:16:53You'll need the council's permission to drop the kerb,
0:16:53 > 0:16:56but off-street parking can add a lot of value,
0:16:56 > 0:16:59so that could be a good move here at the front.
0:16:59 > 0:17:01But what about round the back?
0:17:01 > 0:17:03Oh, boy, have I got something to show you
0:17:03 > 0:17:04at the back of the property!
0:17:04 > 0:17:06A real lovely surprise.
0:17:06 > 0:17:10Because of the, well, basically, positioning of the house,
0:17:10 > 0:17:14it's ended up with this absolutely fantastic rear garden.
0:17:14 > 0:17:17Look at this! Absolutely wonderful.
0:17:17 > 0:17:20I guess, apart from the fact it's a fantastic garden, does it
0:17:20 > 0:17:23give us the option to do some kind of an extension on the property?
0:17:23 > 0:17:25Well, actually, strangely,
0:17:25 > 0:17:29I don't think it does, because...
0:17:29 > 0:17:31Because our house is angled this way
0:17:31 > 0:17:34and because that house is angled that way,
0:17:34 > 0:17:38any extension coming out in this direction is going to get a little bit too close to that
0:17:38 > 0:17:41and any extension here is going to run out of garden.
0:17:41 > 0:17:43So...
0:17:43 > 0:17:47You sort of think it would work...
0:17:47 > 0:17:49but I don't think it does.
0:17:51 > 0:17:53Extensions aside,
0:17:53 > 0:17:57it's a very child-friendly garden or even a gardener-friendly garden.
0:17:57 > 0:17:59And south-facing, too.
0:17:59 > 0:18:03Only a landlord might have second thoughts about maintenance.
0:18:03 > 0:18:05What thoughts does a local estate agent have
0:18:05 > 0:18:11about the potential values of the semi, guided at 85,000?
0:18:11 > 0:18:14Once the property's brought up to a good standard,
0:18:14 > 0:18:18I would suggest a rental value of £600 per calendar month.
0:18:18 > 0:18:22If this was to go on the open market once the property's been done to a
0:18:22 > 0:18:27very good standard, I would suggest an asking price of £125,000.
0:18:28 > 0:18:33Well, it's a good, solid house with the benefits of that fantastic garden.
0:18:33 > 0:18:35Yeah, bit of a no-brainer.
0:18:35 > 0:18:38Let's see who bought it when it went under the hammer.
0:18:39 > 0:18:42Lot Ten, we now go to Madeley, Telford.
0:18:42 > 0:18:45It's a three-bedroom semidetached house.
0:18:45 > 0:18:47Again, it is in need of modernisation.
0:18:47 > 0:18:49Shall we get it going at 78?
0:18:49 > 0:18:5278 bid, thank you. At £78,000.
0:18:52 > 0:18:55It's at £78,000... 80 bid, thank you.
0:18:55 > 0:19:00At £80,000, 82? 82, 84, 86,
0:19:00 > 0:19:0488, at £88,000.
0:19:04 > 0:19:0790? £90,000, at 90,000.
0:19:07 > 0:19:0992?
0:19:11 > 0:19:14And £90,000, there, I'm pointing at him now.
0:19:14 > 0:19:17It's at £90,000. I'm selling it at 90,000.
0:19:17 > 0:19:20If there is not another one anywhere else.
0:19:20 > 0:19:21There is. 91.
0:19:22 > 0:19:2791. With you, sir, £91,000. 92 anywhere else?
0:19:27 > 0:19:2992...
0:19:29 > 0:19:3392 with you, sir. At £92,000.
0:19:33 > 0:19:3593 anywhere else?
0:19:35 > 0:19:4092,000 bid, sir, for £92,000 once, twice,
0:19:40 > 0:19:42third and last time,
0:19:42 > 0:19:43at £92,000...
0:19:43 > 0:19:46- HAMMER BANGS - You bought it. Well done.
0:19:46 > 0:19:51And that bid of £92,000 came from Graham and Marion.
0:19:51 > 0:19:54Former professional golfer Graham and wife Marion
0:19:54 > 0:19:57were actually looking at two properties on the day,
0:19:57 > 0:20:01but they were put off because there was a hole in one, ho-ho!
0:20:01 > 0:20:03Ouch.
0:20:03 > 0:20:06I met them back at the property to find out what their real plans were.
0:20:06 > 0:20:10- Graham, Marion, great to meet you both. Congratulations!- Thank you.
0:20:10 > 0:20:13Tell me why you wanted to buy this place.
0:20:13 > 0:20:19Basically, a year or so ago, both our mothers have died.
0:20:19 > 0:20:24And what that has allowed us to do is look at how to reinvest
0:20:24 > 0:20:27all the money they've left so our children can benefit as well.
0:20:27 > 0:20:30- Right, so, using an inheritance. - Yes.
0:20:30 > 0:20:33Unfortunate circumstances,
0:20:33 > 0:20:36but maybe both your mums would be happy with what you were doing.
0:20:36 > 0:20:39Did they have interest in properties?
0:20:39 > 0:20:44- My mother did, yes, definitely.- She did.- Why this particular house, then?
0:20:44 > 0:20:47It's near to where we live and we were impressed with the house
0:20:47 > 0:20:50itself when we had a look into it.
0:20:50 > 0:20:53We didn't feel as though much needed doing to it.
0:20:53 > 0:20:55- You were really positive, weren't you?- Mm-hm.
0:20:55 > 0:20:58So the next step was to go to the auction.
0:20:59 > 0:21:04# It's like a new generation calling
0:21:05 > 0:21:07# Can you hear it calling? #
0:21:09 > 0:21:11So, Graham and Marion become the next generation
0:21:11 > 0:21:14in their family with an interest in property,
0:21:14 > 0:21:18with the hope that it will in turn benefit their children.
0:21:18 > 0:21:21Graham now works as a supply teacher at the local high school
0:21:21 > 0:21:24and Marion is a part-time midwife.
0:21:24 > 0:21:28They already have a property portfolio, so does that mean
0:21:28 > 0:21:32when they are not working, they will be getting stuck into the work here?
0:21:32 > 0:21:34- Oh, definitely, yes.- Hands on?
0:21:34 > 0:21:39- All our free time will be spent here, yes.- A big garden.
0:21:39 > 0:21:41Yes, fantastic garden, south-facing.
0:21:41 > 0:21:44Everything that a family wants to make it a garden which you can enjoy.
0:21:44 > 0:21:47We are going to make it more user-friendly.
0:21:47 > 0:21:50Probably flatten an area of it so it is all level.
0:21:50 > 0:21:54Hopefully, the idea is that someone comes round, sees the garden
0:21:54 > 0:21:55and thinks, "Yes, we want that house."
0:21:55 > 0:21:59That garden is something of a unique selling point,
0:21:59 > 0:22:03so while it may not add thousands of pounds to the value, with
0:22:03 > 0:22:07a bit of work it could certainly attract buyers or tenants quickly.
0:22:07 > 0:22:10Traditionally, bathrooms and kitchens do the same,
0:22:10 > 0:22:12so what are the plans there?
0:22:12 > 0:22:14Bathroom will be retiled.
0:22:14 > 0:22:17- I've got a bit of practice doing bathrooms, haven't I?!- Yes!
0:22:17 > 0:22:23The kitchen we are very happy with. Tiles possibly need relaying.
0:22:23 > 0:22:25And then a few bits of damp inside.
0:22:25 > 0:22:27Any idea what is causing that?
0:22:27 > 0:22:30I think because the house has been empty for a few months, once we've
0:22:30 > 0:22:34stripped it all back, obviously, we will have a check and seal it off.
0:22:34 > 0:22:38- And then redecorate after. - And then the budget is what?
0:22:40 > 0:22:42It's very low, it will be £2-£3,000.
0:22:42 > 0:22:46We did Marion's mum's house last year,
0:22:46 > 0:22:50which again is an ex-council house, and we did that for less than 5,000.
0:22:50 > 0:22:53That needed a lot more work doing to it and a new kitchen.
0:22:53 > 0:22:55This doesn't need any of that.
0:22:55 > 0:22:57It sounds like Graham and Marion
0:22:57 > 0:22:59know exactly what they're doing here.
0:22:59 > 0:23:03They are planning to have the house done in six to eight weeks, but I'm
0:23:03 > 0:23:06a little surprised to hear they plan to sell it on, rather than rent it.
0:23:07 > 0:23:11From the figures we've been given, we feel as though
0:23:11 > 0:23:13we can make enough profit which will take us
0:23:13 > 0:23:16- three years to get that money back in rent.- Right.
0:23:16 > 0:23:20If we turn it round quickly, we can look at doing it again.
0:23:20 > 0:23:23- Well, congratulations!- Thank you very much.- Good luck with it. - Thank you.
0:23:23 > 0:23:27- We look forward to seeing how you get on!- Cheers.- Thank you.
0:23:27 > 0:23:30Well, I think Graham and Marion have chosen very well with this place,
0:23:30 > 0:23:34a wise use of their inheritance monies.
0:23:34 > 0:23:37Not too much to do, good news really.
0:23:37 > 0:23:41Six to eight weeks, all hands to the pump. How will it turn out?
0:23:41 > 0:23:44You can find out, especially the garden,
0:23:44 > 0:23:46when we come back later in the show.
0:23:48 > 0:23:50And coming up, in Nottingham,
0:23:50 > 0:23:52first-time developer Julie does her homework.
0:23:52 > 0:23:57I did a lot of research on all of Nottingham, really.
0:23:58 > 0:24:01And in Madeley, Graham and Marion have high hopes
0:24:01 > 0:24:04for a successful property-developing career.
0:24:04 > 0:24:07If we turn round quickly, then we can look at doing it again.
0:24:12 > 0:24:15Now it's time to head back to Barnet in Hertfordshire, where
0:24:15 > 0:24:20I visited this tidy three-bedroom semi with a guide price of 390,000.
0:24:23 > 0:24:25Although the property was in need of a little updating,
0:24:25 > 0:24:30it was in great shape and still maintained much of its period charm.
0:24:31 > 0:24:33It wasn't the frowning fireplace
0:24:33 > 0:24:35that held the biggest surprise, though.
0:24:35 > 0:24:39This house already had planning permission for an extension.
0:24:39 > 0:24:42Take a little look at this. Wow!
0:24:42 > 0:24:45It goes all the way out to the back, around the side
0:24:45 > 0:24:48and to the front, and it even goes up into the loft.
0:24:48 > 0:24:52All in all you get a five-bedroom, four-bathroom house.
0:24:52 > 0:24:55It could be really spectacular.
0:24:56 > 0:24:58This property was bursting with potential,
0:24:58 > 0:25:01which didn't go unnoticed when it went to auction.
0:25:01 > 0:25:06- After an exciting back-and-forth bidding war...- Sold, 550.
0:25:06 > 0:25:10..the property sold for £160,000 over the original guide price.
0:25:10 > 0:25:15With the final bid of 550,000, well, it was Ricken, who owns
0:25:15 > 0:25:19and runs a successful construction company with his parents.
0:25:19 > 0:25:22Despite being Ricken's first property development,
0:25:22 > 0:25:25he wasn't hesitant to jump in at the deep end.
0:25:27 > 0:25:31Planning permission is for a five-bed, four-bathrooms.
0:25:31 > 0:25:34But I was thinking, I was looking at the plans and thinking to
0:25:34 > 0:25:38- change it to a six-bed, three baths.- Really?
0:25:38 > 0:25:41I think you'd be better off to put another bathroom in, actually.
0:25:41 > 0:25:45My mind is not made up. I mean, let's see what the estate agents say.
0:25:45 > 0:25:47Still got time to think about it.
0:25:47 > 0:25:50Setting himself a timescale of six to seven months,
0:25:50 > 0:25:55and with a budget of 110,000, with a 10% contingency,
0:25:55 > 0:25:59Ricken was aiming to sell the house for £750,000.
0:25:59 > 0:26:03We returned 11 months later to see how he got on.
0:26:17 > 0:26:21Wow! What a transformation!
0:26:21 > 0:26:23As per the original planning proposal,
0:26:23 > 0:26:27Ricken has extended the property to the side, rear and up into the loft
0:26:27 > 0:26:33area, although altering the internal plans to include another bathroom.
0:26:33 > 0:26:38All of this to create a spectacular five-bedroom, five-bathroom house.
0:26:39 > 0:26:43This used to be the original kitchen where I am standing.
0:26:43 > 0:26:46We've knocked through and opened it out into a nice kitchen/diner
0:26:46 > 0:26:49with bi-folding doors, which leads on to the garden,
0:26:49 > 0:26:53which is a nice, little space for the kids to play around in.
0:26:53 > 0:26:57We've got a utility room which houses an underfloor heating system
0:26:57 > 0:26:59which goes throughout the ground floor,
0:26:59 > 0:27:04and we've just tiled throughout, to have a nice, clean,
0:27:04 > 0:27:08nice space which reflects light and makes it nice and open.
0:27:10 > 0:27:15It looks amazing! Although there is obviously a bit of work to do yet.
0:27:15 > 0:27:16The ground-floor kitchen,
0:27:16 > 0:27:19utility and bathroom has been laid out in such a way it could
0:27:19 > 0:27:23actually be used as a separate guest annexe if necessary.
0:27:23 > 0:27:27On the first floor, there are two bedrooms with en-suites
0:27:27 > 0:27:32and both bathrooms have a lovely sort of hotel vibe.
0:27:32 > 0:27:34Everything is done to exacting standards,
0:27:34 > 0:27:38and to the right of these two en-suites is the new part of the house,
0:27:38 > 0:27:43bedroom number three and four, which have a shared bathroom.
0:27:43 > 0:27:46Again, beautifully appointed.
0:27:46 > 0:27:49Whilst up on the second floor, that loft conversion makes
0:27:49 > 0:27:52an amazing master bedroom, with of course its own bathroom.
0:27:53 > 0:27:56So, that's five bedrooms with the possibility of that
0:27:56 > 0:28:01annexe on the ground floor serving as a bedroom too. Phew!
0:28:01 > 0:28:03So, how did Ricken decide
0:28:03 > 0:28:06on his final bedroom-bathroom configuration?
0:28:06 > 0:28:11In the end, looking at the properties around the area and on the street,
0:28:11 > 0:28:14I didn't think that a six-bedroom house would fit the market.
0:28:14 > 0:28:20So adding an extra bathroom is more valuable to a family who is
0:28:20 > 0:28:22potentially going to live here with kids.
0:28:22 > 0:28:24I think he's made the right decision
0:28:24 > 0:28:27and the result really is fabulous.
0:28:27 > 0:28:29I do miss some of those period features, though.
0:28:29 > 0:28:32Whatever happened to those sliding doors?
0:28:32 > 0:28:34Obviously, they are not here any more,
0:28:34 > 0:28:36but they didn't get thrown away into the skip.
0:28:36 > 0:28:39The sliding doors and actually, all of the bedroom doors,
0:28:39 > 0:28:42the original bedroom doors have been rehoused
0:28:42 > 0:28:44at our neighbour's property across the road.
0:28:44 > 0:28:46So we recycled them.
0:28:48 > 0:28:50That's OK, I like a bit of recycling,
0:28:50 > 0:28:52and I'm happy to hear they went to a new home.
0:28:52 > 0:28:54Now, the all-important budget.
0:28:57 > 0:29:00We've ended up spending £40,000 more than we accounted for,
0:29:00 > 0:29:03so the final budget ends up at £150,000.
0:29:04 > 0:29:08Bearing in mind the scale of the project and the final fit-out,
0:29:08 > 0:29:09I feel we've done well.
0:29:11 > 0:29:16That brings the total spend on this huge project to 700,000.
0:29:16 > 0:29:20That's a big investment. What do two local estate agents make of it?
0:29:20 > 0:29:23I think the property has been done beautifully, actually.
0:29:23 > 0:29:26I think they've taken into consideration
0:29:26 > 0:29:29modern family living and they've done a very good job.
0:29:29 > 0:29:32There is a real shortage of stock, actually, of homes of this size
0:29:32 > 0:29:39in the area, so it's fitting for a family who need to have
0:29:39 > 0:29:41lots of bedrooms and bathrooms.
0:29:41 > 0:29:44A lot of work has clearly gone on here.
0:29:44 > 0:29:47Maximised the size, can't get any more accommodation
0:29:47 > 0:29:50out of this house now. Really, really good what he's done.
0:29:50 > 0:29:54A few things to finish off, but really, really nice house
0:29:54 > 0:29:56when it's done.
0:29:56 > 0:30:00So it's a great job, but having spent £700,000,
0:30:00 > 0:30:02has Ricken left enough to make any profit?
0:30:03 > 0:30:07We would expect to achieve on the resale market £925,000,
0:30:07 > 0:30:09and on the rental market,
0:30:09 > 0:30:14we would expect to achieve around £3,500 per calendar month.
0:30:14 > 0:30:17I would recommend on the open market that you would achieve
0:30:17 > 0:30:22offers in the region of £925,000, and for rental market,
0:30:22 > 0:30:25you would be looking to achieve 3,250 per calendar month.
0:30:27 > 0:30:30The valuation from the agents means
0:30:30 > 0:30:34a potential profit of an amazing £225,000.
0:30:34 > 0:30:37It's quite in line with what I expected.
0:30:37 > 0:30:4195 is probably what we would sell at, looking for 950, it's good,
0:30:41 > 0:30:42a good return.
0:30:43 > 0:30:47That rental valuation would mean a yield of 6%.
0:30:47 > 0:30:50At 3,500 it might be beneficial for us
0:30:50 > 0:30:55to hold on and we can go again, remortgage and go again.
0:30:55 > 0:30:56So it gives us options.
0:30:56 > 0:31:00So it's good to hear that, it's quite reassuring as well.
0:31:00 > 0:31:04So all in all, I'd say a resounding success for Ricken's first foray
0:31:04 > 0:31:06into the property renovations market,
0:31:06 > 0:31:09and I can't imagine this will be his last.
0:31:09 > 0:31:11We're definitely going to go again.
0:31:11 > 0:31:14Something smaller next time and then go again with something larger.
0:31:20 > 0:31:23Having played football for many years and for several different clubs,
0:31:23 > 0:31:26travelling up and down the country with Homes Under The Hammer
0:31:26 > 0:31:30often brings back memories, and today was one of my favourites.
0:31:30 > 0:31:34So I'm here on the A52, which links Derby and Nottingham,
0:31:34 > 0:31:38commonly known in these parts as Brian Clough Way,
0:31:38 > 0:31:41the great man who managed Derby and Nottingham.
0:31:41 > 0:31:44And, I happened to meet him once. I said, "Hello, Mr Clough."
0:31:44 > 0:31:48He said, "Dublin." I was just happy he knew my name.
0:31:50 > 0:31:54Maybe there could be a Dion Dublin Drive in Birmingham one day?
0:31:54 > 0:31:57Anyway, back to reality and away from the A52.
0:31:57 > 0:32:00We are heading to a suburb with a nice, villagey feel.
0:32:02 > 0:32:06So here in Bramcote, a nice, sought-after area in Nottingham,
0:32:06 > 0:32:07is the property I'm here to see.
0:32:07 > 0:32:10It's a three-bed semidetached property with a guide price
0:32:10 > 0:32:16of £145,000, plus, the first thing I've seen is off-street parking.
0:32:16 > 0:32:20I like that. The second thing is, there's a garage down the end.
0:32:20 > 0:32:21But can you get your car to it?
0:32:21 > 0:32:23Let's see what you get for your money.
0:32:23 > 0:32:26Blimey. Always good to have a garage but I don't fancy reversing
0:32:26 > 0:32:28in and out of this driveway.
0:32:28 > 0:32:34# The road is long...
0:32:34 > 0:32:37# With many a winding... #
0:32:37 > 0:32:40OK, we're into a really spacious hallway.
0:32:40 > 0:32:43Gas central heating. Always like that.
0:32:43 > 0:32:46A nice, big window, a bit of light coming into the hallway,
0:32:46 > 0:32:48and your stairs up to the bedrooms.
0:32:48 > 0:32:50Let's have a look into the kitchen.
0:32:51 > 0:32:57Which is small and it's a little bit dated. A bit '70s, '80s.
0:32:57 > 0:32:59I did say we've got central heating, which is good,
0:32:59 > 0:33:04and the boiler is just here. And it's old-fashioned.
0:33:04 > 0:33:09That needs updating, for sure. A bit of cupboard space here.
0:33:09 > 0:33:11Yes, shelving there.
0:33:11 > 0:33:13So it just needs freshening up in here,
0:33:13 > 0:33:15but I'm sure there are options to be had.
0:33:23 > 0:33:26No option about the boiler, though. Throw it away.
0:33:26 > 0:33:28It's too big and too old.
0:33:28 > 0:33:31What I wouldn't throw away are those kitchen units.
0:33:31 > 0:33:34I reckon some upcyclers would be happy to get their hands
0:33:34 > 0:33:38on those units, and you might make yourself a quid or two.
0:33:39 > 0:33:43You've also got this big space here, sort of lounge, living-room area,
0:33:43 > 0:33:46dining area just over here.
0:33:46 > 0:33:48What it does say to me is...
0:33:48 > 0:33:53You've got this sort of old-fashioned "pass me a cup of tea" hatch.
0:33:53 > 0:33:56Back in the '70s, '80s, very, very popular.
0:33:56 > 0:34:00But for me, make into a nice kitchen/dining area,
0:34:00 > 0:34:03bring it into the 21st century. A nice family room.
0:34:03 > 0:34:06You could make it even two separate rooms if you wanted to,
0:34:06 > 0:34:09but there's options here to be had.
0:34:09 > 0:34:11And they are all yours.
0:34:11 > 0:34:17OK, OK, maybe it's not a "pass a cup of tea" hatch, but you get the idea.
0:34:17 > 0:34:20# Potato, potahto, tomato, tomahto
0:34:20 > 0:34:22# Let's call the whole thing off. #
0:34:24 > 0:34:27Kitchen/diners are so popular nowadays, and for me,
0:34:27 > 0:34:29this dated property is crying out for one.
0:34:31 > 0:34:34OK, upstairs, we've got the three bedrooms.
0:34:34 > 0:34:35A little bit of landing space.
0:34:35 > 0:34:37I do like the window at the top of the stairs,
0:34:37 > 0:34:40and the window at the bottom. It brings in a lot of light.
0:34:40 > 0:34:45Small box bedroom just there, master bedroom there, bedroom two.
0:34:46 > 0:34:51Toilet and a bathroom which again looks a little bit tired.
0:34:51 > 0:34:55A bit dated and could do with a bit of a spruce-up.
0:34:55 > 0:34:57And you have a loft hatch as well.
0:34:57 > 0:35:01I have seen across the road that there's a few loft conversions.
0:35:01 > 0:35:05Depending on how big your budget is, do you spend it on the bathroom
0:35:05 > 0:35:08and the kitchen, or do you spend it on the loft?
0:35:08 > 0:35:10Or do you do it all?
0:35:10 > 0:35:12Depends on what your budget is.
0:35:12 > 0:35:16# I want it all and I want it now... #
0:35:18 > 0:35:21Before you dive in, think about what you want it for.
0:35:21 > 0:35:25If it's for you to live in, yes, an extra bedroom would be great.
0:35:25 > 0:35:28But if you want to sell on and maximise your profits,
0:35:28 > 0:35:31keeping your budget low is the best option.
0:35:31 > 0:35:34Options is the word of the day for this property,
0:35:34 > 0:35:36in case you haven't noticed.
0:35:37 > 0:35:40So out in the back garden and I think it's a nice size.
0:35:40 > 0:35:42You'd have to put a fence back up again,
0:35:42 > 0:35:44but I think a bit of TLC out here
0:35:44 > 0:35:48and you'd have yourself a nice family area for the kids to run around in.
0:35:50 > 0:35:54While getting the paddling pool out might be an option, there are others.
0:35:54 > 0:35:55This is a sizable space,
0:35:55 > 0:35:59and you could think about extending like the neighbours have.
0:35:59 > 0:36:02You could make access for getting materials in by getting rid
0:36:02 > 0:36:06of the garage. However, like a lot of garages of its era,
0:36:06 > 0:36:10it probably contains asbestos, so a specialist is needed here.
0:36:10 > 0:36:12Options and more options.
0:36:13 > 0:36:17A great-size garden, though, to go with a great-size house
0:36:17 > 0:36:22with room for improvement, and all for a guide price of £145,000 plus.
0:36:22 > 0:36:25We invited along an agent from the auction house that sold it,
0:36:25 > 0:36:26to get their opinion.
0:36:27 > 0:36:31Potentially, there is an avenue of extending at the back
0:36:31 > 0:36:32and having maybe a fourth bedroom
0:36:32 > 0:36:36and a larger living accommodation downstairs.
0:36:36 > 0:36:38However, it's good enough as it is.
0:36:38 > 0:36:39It's a three-bedroom semi,
0:36:39 > 0:36:42you could just have a conservatory, or the bare minimum is just
0:36:42 > 0:36:46to knock out the walk and have a larger kitchen/dining area.
0:36:46 > 0:36:49OK, if the agent thinks the current footprint is fine,
0:36:49 > 0:36:53then maybe it's best to be careful not to overdevelop.
0:36:53 > 0:36:55What rental potential does it have?
0:36:55 > 0:36:58With regard to rental, I see this property within
0:36:58 > 0:37:02the region of £700-£750 per calendar month.
0:37:02 > 0:37:04And how about the resale value?
0:37:04 > 0:37:07This property, once fully refurbished and modernised
0:37:07 > 0:37:08and of a high standard,
0:37:08 > 0:37:13I see it on the market within the region of £230-£240,000.
0:37:14 > 0:37:17Well, it's one of the better three-bed semis I've seen.
0:37:17 > 0:37:20It just needs a bit of modernisation.
0:37:20 > 0:37:22So who was looking for something pretty straightforward
0:37:22 > 0:37:24and simple when it went under the hammer?
0:37:24 > 0:37:29Lot number one, an attractive three-bedroom semidetached house
0:37:29 > 0:37:32which requires some upgrading and improvement.
0:37:32 > 0:37:35Start me on this one where you like, would you like to start me at 150?
0:37:35 > 0:37:40150,000 for it? 150, thank you, £150,000 I have.
0:37:40 > 0:37:43At 150,000, 151 from someone?
0:37:43 > 0:37:51151 is bid. 152, 153, 153, 154?
0:37:51 > 0:37:53154.
0:37:53 > 0:37:55This was the first lot of the day
0:37:55 > 0:37:57and it certainly attracted a lot of attention.
0:37:57 > 0:38:00We rejoin the bidding at 183,000.
0:38:00 > 0:38:06Lady's bid at 183,000, out in the doorway, out by the window.
0:38:06 > 0:38:08£183,000.
0:38:08 > 0:38:10For the first time...
0:38:10 > 0:38:13For the second time. Third and last. 500.
0:38:13 > 0:38:17184, yep? 184. 500 in the doorway.
0:38:17 > 0:38:20185. 500.
0:38:20 > 0:38:24186. 186,000.
0:38:24 > 0:38:26Seated bid at 186.
0:38:26 > 0:38:32Coming again? At £186,000, once...
0:38:32 > 0:38:36Twice... Third opportunity? Hammer's up.
0:38:36 > 0:38:39Sold at 186, thank you.
0:38:41 > 0:38:46The successful bid of £186,000, just 40 grand over the guide price,
0:38:46 > 0:38:49went to former travel and tourism lecturer Julie.
0:38:51 > 0:38:54This is her first renovation project and I'm keen to find out
0:38:54 > 0:38:58if she thinks this property will be plain sailing or a bumpy ride.
0:38:59 > 0:39:02- Julie, nice to meet you, congratulations.- Thank you.
0:39:02 > 0:39:06- So, what enticed you to this property in particular?- The area.
0:39:06 > 0:39:07It's a very nice area.
0:39:07 > 0:39:13And also, it needs a fair bit of work, but it's not, like, massive.
0:39:13 > 0:39:16And to dip my toe in the water, I thought for my first one,
0:39:16 > 0:39:20I'll see how it goes and this is it.
0:39:20 > 0:39:24And judging by your accent, there's a bit of a twang there from the south!
0:39:24 > 0:39:26I'm originally from London, east London,
0:39:26 > 0:39:28but I live in Essex now, in Romford.
0:39:28 > 0:39:34But I came up here just because I found the auctions in London
0:39:34 > 0:39:36a bit overwhelming, a bit busy.
0:39:36 > 0:39:40So much competition and it just seemed that
0:39:40 > 0:39:44I needed to spread my wings a bit and here I am in Nottingham.
0:39:44 > 0:39:47So did you do a bit of research, before you came up, of the area?
0:39:47 > 0:39:52Oh, yeah, I did a lot of research on all of Nottingham, really.
0:39:52 > 0:39:55And the day I went to the auction, well, prior to that,
0:39:55 > 0:39:59I'd come up and viewed five properties in one day
0:39:59 > 0:40:03with a friend, and this was the last property.
0:40:03 > 0:40:05So at the end of the day we went to the pub and we said,
0:40:05 > 0:40:08"We've got to start writing down which one's which and which I should
0:40:08 > 0:40:12"go for," and this one came out on top and I was lucky enough to get it.
0:40:13 > 0:40:16Top of the class, Julie. If you are buying in an unfamiliar area,
0:40:16 > 0:40:19it is SO important to do your research.
0:40:19 > 0:40:23Take a note of the travel links, local schools, amenities
0:40:23 > 0:40:26and planned developments. All this can have a bearing
0:40:26 > 0:40:28on the value of the property you are buying.
0:40:28 > 0:40:33Plus, you have to factor in the travel costs, especially if you live
0:40:33 > 0:40:37a distance away and you are planning to supervise or do the work yourself.
0:40:37 > 0:40:38Talking of which...
0:40:38 > 0:40:41What have you got in mind? What are you going to do to it?
0:40:41 > 0:40:44Well, downstairs, I was going to knock through the wall
0:40:44 > 0:40:47from the kitchen to the lounge,
0:40:47 > 0:40:50cos as you have probably seen, it is very tiny and dated.
0:40:50 > 0:40:52I think it needs opening up.
0:40:52 > 0:40:56And, also, I was going to put a toilet under the stairs,
0:40:56 > 0:41:01as well. And then, when we go upstairs, the toilet and bathroom
0:41:01 > 0:41:07to become one. And, then, just a general tidy-up
0:41:07 > 0:41:10and wallpaper etc. And then, outside, I was going to have
0:41:10 > 0:41:14some off-street parking and have that block-paved. And the garden -
0:41:14 > 0:41:19a tidy-up, decking and the garage is going to go,
0:41:19 > 0:41:22cos the roof is asbestos, which you have probably seen.
0:41:22 > 0:41:26So, that is going to go. And then, that's it, really.
0:41:26 > 0:41:29Just a general tidy-up and put back on the market.
0:41:29 > 0:41:33Have you looked at any other bigger plans for the property?
0:41:33 > 0:41:34Maybe the loft or extending or...?
0:41:34 > 0:41:37I did, yeah, and it is a possibility,
0:41:37 > 0:41:40but the financials just didn't work out on it,
0:41:40 > 0:41:41from the research I'd done.
0:41:41 > 0:41:45But obviously, it is an option and it is there if someone wants
0:41:45 > 0:41:48to do that, so, they have got that option, as well.
0:41:48 > 0:41:50But, no, I'm not going to do that.
0:41:50 > 0:41:53Julie really does her research and plans well,
0:41:53 > 0:41:57right from arranging to stay the night before the auction,
0:41:57 > 0:42:01so she had the chance to bid on lot one. She is on it!
0:42:01 > 0:42:04She has a budget of in-between 15 to 20 grand and, of course,
0:42:04 > 0:42:07she has thought about a contingency. She aims to have the work completed
0:42:07 > 0:42:11in four to five months, which is impressive, despite her lack
0:42:11 > 0:42:13of property-developing experience.
0:42:13 > 0:42:16- First time at the auction? - Yeah.- First lot?
0:42:16 > 0:42:19- Yes.- First property?- Yes!
0:42:20 > 0:42:21And there is no nerves, at all?
0:42:21 > 0:42:26No, there wasn't. I was just really pleased I got it, really,
0:42:26 > 0:42:29and a bit surprised, cos it was, really, a popular lot,
0:42:29 > 0:42:34which I thought it would be. Cos when I viewed it, it was quite busy.
0:42:34 > 0:42:36But, yeah, I was just pleasantly surprised.
0:42:36 > 0:42:39Good for you. I think you have got yourself a little gem.
0:42:39 > 0:42:42- Thank you.- I think you will do well. - Thank you.- Good luck to you, Julie.
0:42:42 > 0:42:43- Thank you.- Take care.
0:42:44 > 0:42:47So, a lot of firsts for Julie, but she has done her prep
0:42:47 > 0:42:51and a load of research, which is always advisable.
0:42:51 > 0:42:54But will she stay within that £15,000-£20,000 budget
0:42:54 > 0:42:58and make her first profit? You can find out later on in the programme.
0:43:01 > 0:43:05Doing up property can take much longer than you think.
0:43:05 > 0:43:08We have seen how one buyer got on, but when we went back to visit
0:43:08 > 0:43:11- the other two, had they finished? - Well, let's find out.
0:43:12 > 0:43:14We swing back over to Madeley now -
0:43:14 > 0:43:16a little town in the formidable shadow
0:43:16 > 0:43:18of the Wrekin.
0:43:18 > 0:43:20It was in this Shropshire town
0:43:20 > 0:43:24that I was hoping this three-bed semidetached house,
0:43:24 > 0:43:26that had a guide price of £85,000,
0:43:26 > 0:43:30would be less of a mountain to climb and more of a hill.
0:43:30 > 0:43:32And so it proved.
0:43:32 > 0:43:33As you will know, if you watch regularly,
0:43:33 > 0:43:38I am a big fan of ex-local-authority housing, and this was no exception.
0:43:38 > 0:43:43Spacious, solid and only in need of some cosmetic work.
0:43:43 > 0:43:47Plus, a substantial garden. Well, it was perfect for families.
0:43:48 > 0:43:52It proved popular on auction day, too, but, as always, there can only
0:43:52 > 0:43:55- be one successful bidder. - You bought it. Well done.
0:43:58 > 0:44:02Husband and wife team Graham and Marion bought this property
0:44:02 > 0:44:06for £92,000, using money they had recently inherited.
0:44:08 > 0:44:11# It takes two, baby
0:44:11 > 0:44:14# It takes two, baby
0:44:14 > 0:44:16# Me and you... #
0:44:16 > 0:44:19And it didn't take them long to spot the big bonus here.
0:44:20 > 0:44:24- A big garden? - Yeah, fantastic garden. South-facing.
0:44:24 > 0:44:27Everything that a family wants, to make it a garden which you can enjoy.
0:44:27 > 0:44:31We are going to make it more user-friendly. Probably flatten
0:44:31 > 0:44:33an area of it, so that it is all level.
0:44:33 > 0:44:36So, hopefully, the idea is that someone comes round,
0:44:36 > 0:44:38sees the garden and thinks, "We want that house."
0:44:38 > 0:44:42Graham and Marion planned to do the work themselves,
0:44:42 > 0:44:45hopefully, with a little help from their three grown-up children.
0:44:46 > 0:44:50They had a budget of just £2,000-£3,000 and a timescale
0:44:50 > 0:44:53of six to eight weeks to get this property ready for the sales market.
0:44:55 > 0:44:58Well, it is now five months later and we have returned to find out
0:44:58 > 0:45:00how it's all gone.
0:45:06 > 0:45:08Wow, that garden is looking SO much better!
0:45:10 > 0:45:12And a little birdie tells me decking will be added
0:45:12 > 0:45:13at a later date.
0:45:15 > 0:45:17Hopefully, the good work continues inside.
0:45:21 > 0:45:24The bathroom has been brought bang up to date, with a modern
0:45:24 > 0:45:26monochrome feel.
0:45:27 > 0:45:30It was outside that Graham and Marion hoped would be
0:45:30 > 0:45:34the wow factor, so, as expected, the work here has been kept
0:45:34 > 0:45:37relatively simple, with new flooring throughout
0:45:37 > 0:45:39and repainted walls,
0:45:39 > 0:45:42giving the property a fresh, attractive finish.
0:45:42 > 0:45:46It has been a bit of a family affair, with all three
0:45:46 > 0:45:49of Graham and Marion's children getting involved - Michael, Helen
0:45:49 > 0:45:52and, particularly, youngest son Peter,
0:45:52 > 0:45:55who laid the floor in the second bedroom.
0:45:57 > 0:46:00There is a few little jobs to finish, but overall,
0:46:00 > 0:46:02Graham and Marion - and not forgetting Peter
0:46:02 > 0:46:05and his brother and sister - have done a really smart job here,
0:46:05 > 0:46:09turning this from an unloved, dilapidated property into a lovely
0:46:09 > 0:46:10family home we see today.
0:46:12 > 0:46:14Time to catch up with Graham and Marion,
0:46:14 > 0:46:17to find out exactly how it's gone.
0:46:17 > 0:46:21The original timescale was about eight weeks, wasn't it?
0:46:21 > 0:46:23- Yeah, and I knew you wouldn't make that!- Yeah.
0:46:23 > 0:46:28That soon went out the window, didn't it?! But we spent a lot of time
0:46:28 > 0:46:31- in the garden...- Too much time, I think.- Too much time.
0:46:31 > 0:46:34But it was very nice, spending that time in the garden, wasn't it?
0:46:34 > 0:46:38With it being south-facing, we wanted to create a family environment,
0:46:38 > 0:46:42with a bit of a wow factor. We have still got the decking to do,
0:46:42 > 0:46:45but in terms of the garden, we have levelled it off,
0:46:45 > 0:46:50we have put a nice path down towards where a shed is likely to be put.
0:46:50 > 0:46:53It looks really good. We are really pleased with the garden.
0:46:53 > 0:46:56- And we have dropped the kerb, haven't we?- Round the front,
0:46:56 > 0:46:59we recycled everything, brought the fence back.
0:46:59 > 0:47:03We have dropped the kerb, so they can get two cars parked on the front,
0:47:03 > 0:47:06cos it is quite a busy road out front.
0:47:06 > 0:47:09- And we are really happy over everything, aren't we?- Yeah, we are.
0:47:11 > 0:47:15Of course, not everyone will want to lose a nice front-garden outlook,
0:47:15 > 0:47:18but parking is a bonus when the road is busy
0:47:18 > 0:47:22and it can add significant value at a relatively low cost.
0:47:22 > 0:47:27Speaking of costs, how is that £2,000-£3,000 budget holding up?
0:47:28 > 0:47:31With the dropped kerb, we have ended up spending...
0:47:31 > 0:47:34- About 3,500?- ..3,750...- Oh, is that right?- ..I think, in total.
0:47:34 > 0:47:37And that is with some new work surfaces in the kitchen, as well,
0:47:37 > 0:47:40which we weren't planning on doing, just to make it look
0:47:40 > 0:47:43- a little bit better than it was before.- Mm.- But overall,
0:47:43 > 0:47:47we have stuck within the budget that we set ourselves, so we are quite
0:47:47 > 0:47:50- pleased with that.- One issue they spent more time and money on
0:47:50 > 0:47:53than expected was the damp.
0:47:53 > 0:47:56When we first viewed the house, we saw the front of the house,
0:47:56 > 0:48:01which faces north, was... A few bits of damp on the walls.
0:48:01 > 0:48:03Um, the house had been empty for about six months,
0:48:03 > 0:48:08so, we cleaned it all off, we have now had it treated,
0:48:08 > 0:48:14we've put a special insulation wallpaper on the outer walls,
0:48:14 > 0:48:19and round the edge of the house we have dug it all out
0:48:19 > 0:48:22so that water can't collect around the outside of the house.
0:48:22 > 0:48:24Because of that, we feel very confident
0:48:24 > 0:48:26that the damp won't come back again.
0:48:28 > 0:48:31Well, along with their purchase price, Graham and Marion have
0:48:31 > 0:48:34so far invested just under £96,000.
0:48:34 > 0:48:37They are eager to sell, so, hopefully the weather won't
0:48:37 > 0:48:41dampen the enthusiasm of two local estate agents.
0:48:41 > 0:48:44The butt is fantastic, it's been done to a very high standard.
0:48:44 > 0:48:48It will attract tenants and buyers very easily.
0:48:48 > 0:48:51The bathroom has been done to a good standard as well
0:48:51 > 0:48:52and the kitchen is also very good.
0:48:52 > 0:48:56I'm really impressed with the garden as well, it's a big garden.
0:48:56 > 0:48:59Demand for this, both for resale and the rental market,
0:48:59 > 0:49:01would be extremely strong.
0:49:01 > 0:49:05If the sellers decided to let the property, I would not envisage
0:49:05 > 0:49:08that this property would be on the market for very long.
0:49:08 > 0:49:11With that in mind, let's hear valuations.
0:49:11 > 0:49:13Rental first.
0:49:13 > 0:49:18I believe this property would let for £575-£595 per calendar month.
0:49:18 > 0:49:21If this was to go on the rental market today,
0:49:21 > 0:49:24I would be suggesting to our clients that we put
0:49:24 > 0:49:26this on the market for £600 per calendar month.
0:49:26 > 0:49:30- I'm surprised.- I thought it was just a fraction on the lowish side.
0:49:30 > 0:49:34- About another £50 per month.- I'm more than pleased with that.- Yeah?- Mm.
0:49:34 > 0:49:36But we're not renting, anyway.
0:49:36 > 0:49:40A divided opinion on rental, there.
0:49:40 > 0:49:43But will the resale values meet their expectations?
0:49:44 > 0:49:47If this was to go on the sales market today,
0:49:47 > 0:49:51I would be suggesting an asking price of £125,000.
0:49:51 > 0:49:54I believe this property would fetch, in the sales market,
0:49:54 > 0:49:57£125,000-£130,000.
0:49:57 > 0:50:02That's a profit of around £29,000-£34,000, which is excellent.
0:50:02 > 0:50:06Graham originally worked out that a profit on resale would be
0:50:06 > 0:50:10better than waiting for a return on rental, and with these figures,
0:50:10 > 0:50:14he would have to wait around five years to make that sum, so...
0:50:14 > 0:50:17- I think we are definitely going to sell, aren't we?- We're going to try.
0:50:17 > 0:50:21We're going to try and sell. If we can't sell it, we'll have to rent it!
0:50:21 > 0:50:22Yeah. Me viewing!
0:50:22 > 0:50:25THEY LAUGH
0:50:30 > 0:50:34Back now to the sought-after suburb of Bramcote in Nottingham.
0:50:34 > 0:50:37It was here that we first looked around this attractive
0:50:37 > 0:50:41three-bed semi that had a guide price of £145,000 plus,
0:50:41 > 0:50:46a great but dated house that was screaming out to be modernised.
0:50:48 > 0:50:51You've got this sort of old-fashioned,
0:50:51 > 0:50:53"pass me a cup of tea" hatch.
0:50:53 > 0:50:56Back in the '70s and '80s, very, very popular, but for me,
0:50:56 > 0:51:02make it into a nice kitchen/dining area, bring it into the 21st century.
0:51:02 > 0:51:04Nice family room.
0:51:04 > 0:51:07You could make it even two separate rooms if you wanted to,
0:51:07 > 0:51:11but there's options here to be had and they are all yours.
0:51:11 > 0:51:15It turned out to be a real battle on auction day, with bids flying.
0:51:15 > 0:51:19But in the end, the property sold for 186,000.
0:51:19 > 0:51:21It's sold at 186, thank you.
0:51:23 > 0:51:27Step up, property novice and former travel and tourism lecturer Julie.
0:51:27 > 0:51:29Having done her research,
0:51:29 > 0:51:31she concluded that the London market was too daunting,
0:51:31 > 0:51:35so, Julie travelled from her home in Essex to Nottingham to begin
0:51:35 > 0:51:37her career in property development.
0:51:37 > 0:51:40So, did you do a bit of research, before you came up, of the area?
0:51:40 > 0:51:44Oh, yeah. I did a lot of research on all of Nottingham, really.
0:51:44 > 0:51:47And the day I went to the auction, well, prior to that,
0:51:47 > 0:51:50I had actually came up and viewed five properties
0:51:50 > 0:51:54in one day, with a friend, and this was the last property.
0:51:54 > 0:51:56So, it was all a bit...
0:51:56 > 0:51:58at the end of the day, we went to the pub and we said,
0:51:58 > 0:52:00"We've got to start writing down which one's which
0:52:00 > 0:52:02"and which one I should go for."
0:52:02 > 0:52:04And this came out on top and I was lucky enough to get it.
0:52:04 > 0:52:09Although there could be scope to add bedrooms and extend,
0:52:09 > 0:52:13Julie wisely wanted to keep her first project relatively simple.
0:52:13 > 0:52:18She had a budget of between 15 and 20 grand with a 10% contingency,
0:52:18 > 0:52:20and she hoped to get the work complete
0:52:20 > 0:52:24and the house ready for the sales market within four to five months.
0:52:25 > 0:52:27Five months later, we've returned
0:52:27 > 0:52:30to see if Julie's plans took off or were grounded.
0:52:40 > 0:52:43Knocking that wall down has opened this right up,
0:52:43 > 0:52:47making this once dated and dowdy living area fresh and contemporary.
0:53:00 > 0:53:02Another wall has come down upstairs,
0:53:02 > 0:53:04this time between the bathroom and toilet,
0:53:04 > 0:53:07which is now a far more practical family bathroom.
0:53:16 > 0:53:18The bedrooms are looking much better,
0:53:18 > 0:53:22with a tasteful finish that runs throughout this revitalised property.
0:53:24 > 0:53:27Outside, that old, dodgy garage has gone
0:53:27 > 0:53:30and there is new decking to go with this smartened-up garden.
0:53:33 > 0:53:35There's a few bits and bobs to finish,
0:53:35 > 0:53:39but Julie has done a great job for her first property project.
0:53:39 > 0:53:41But how was it for her?
0:53:41 > 0:53:45The biggest problems I had initially was finding a builder,
0:53:45 > 0:53:47contractors, that I felt happy with,
0:53:47 > 0:53:51and that took me about a month, but I eventually found a good
0:53:51 > 0:53:55local contractor, who had some really good, useful contacts
0:53:55 > 0:53:59as well, that we brought in, and they did all the work for me.
0:53:59 > 0:54:03But the biggest issue that they came across was in the kitchen.
0:54:03 > 0:54:07There was what they called a floating chimney breast,
0:54:07 > 0:54:09if you remember, it came sort of halfway down.
0:54:09 > 0:54:13But when they started to remove that, they found it was
0:54:13 > 0:54:15full of concrete and it was quite a horrendous job,
0:54:15 > 0:54:18and I had acrow props and steels and all sorts here.
0:54:18 > 0:54:21So, that was pretty tough going.
0:54:21 > 0:54:24But once that had gone, everything else was pretty smooth.
0:54:26 > 0:54:29Julie originally planned to have a cloakroom downstairs, but on her
0:54:29 > 0:54:33builder's advice, she decided it wouldn't be cost-effective.
0:54:33 > 0:54:37Don't forget, she had a healthy budget of between 15 and 20 grand,
0:54:37 > 0:54:42but there has been a fair bit of work here, so how is it looking now?
0:54:42 > 0:54:48Um, I spent, in total, £18,655,
0:54:48 > 0:54:49which I was quite happy with.
0:54:49 > 0:54:52It was in line with my expectations.
0:54:52 > 0:54:56I kept the budget to that by sourcing
0:54:56 > 0:54:58a lot of the materials myself,
0:54:58 > 0:55:01and then getting different tradesmen in just to actually fit
0:55:01 > 0:55:05the appliances I had plasterers in, electricians in, builders in
0:55:05 > 0:55:10etc, so, that kept the price, you know, to what it was,
0:55:10 > 0:55:12really, 18,500, or just over.
0:55:12 > 0:55:14So, I was quite happy with that, for the work that's been done.
0:55:14 > 0:55:18Um, it's... I hoped it would take about four to five months,
0:55:18 > 0:55:21which...in reality, it has taken that long.
0:55:21 > 0:55:24But actually, work-wise, if all the work was done in one go,
0:55:24 > 0:55:27it would probably have only taken about two and a half months.
0:55:27 > 0:55:29But, you know, I found the builder,
0:55:29 > 0:55:33he then had a week's holiday booked, I had two weeks' holiday booked,
0:55:33 > 0:55:35I live in Essex, so I was backwards and forwards,
0:55:35 > 0:55:40so, things got done as and when I had chosen the materials
0:55:40 > 0:55:42and the availability of the contractors.
0:55:42 > 0:55:44So, I was quite happy with the timescales involved,
0:55:44 > 0:55:47and although it isn't finished at the moment -
0:55:47 > 0:55:50there are still quite a few things that are outstanding to do -
0:55:50 > 0:55:53I'm quite happy and confident that they will get done in the next
0:55:53 > 0:55:56couple of weeks, with the contractors I've got in place.
0:55:56 > 0:55:58Well, Julie is so confident
0:55:58 > 0:56:02that she has already put the property on the sales market.
0:56:02 > 0:56:08But will her total investment of just over £204,500 be money well spent?
0:56:11 > 0:56:14We've asked along two local agents to cast their critical eye
0:56:14 > 0:56:16and give us their verdicts.
0:56:16 > 0:56:19We'll start with the agent who saw it originally.
0:56:21 > 0:56:24For a three-bedroom semidetached house, it's ideal for families,
0:56:24 > 0:56:28it is far more conducive for modern-day living, open-plan,
0:56:28 > 0:56:30sociable kind of lounge,
0:56:30 > 0:56:32dining and kitchen area,
0:56:32 > 0:56:36so, it's got a nice flow and it's ideal for busy families.
0:56:36 > 0:56:40The property has been finished to a high standard,
0:56:40 > 0:56:42and all the walls,
0:56:42 > 0:56:45skirting boards, they are painted throughout,
0:56:45 > 0:56:49and all the carpets have been laid out properly.
0:56:49 > 0:56:54OK, so, now to hear those all-important sales valuations.
0:56:54 > 0:56:57With regards to selling the property on the open market, I'm going
0:56:57 > 0:56:59to be quite conservative here,
0:56:59 > 0:57:03I feel that you do have competition with detached properties and
0:57:03 > 0:57:08four-bedroom detached properties, so, pricing has to be crucial.
0:57:08 > 0:57:11Invariably, the market is buoyant and new precedents are set.
0:57:11 > 0:57:15But my feeling is you're looking to put this on the market within
0:57:15 > 0:57:18the region of £240,000-£250,000.
0:57:18 > 0:57:21This property will achieve
0:57:21 > 0:57:27the market value of £286,000.
0:57:27 > 0:57:29Um, the house is currently on the market with a local agent
0:57:29 > 0:57:33for £279,000, and I've had a few viewings
0:57:33 > 0:57:36and some positive feedback, so I'm very happy with that.
0:57:36 > 0:57:38Well, the estate agents can't always agree,
0:57:38 > 0:57:44but if Julie was to achieve her valuation of 279 grand,
0:57:44 > 0:57:50that would mean a whopping profit of just under £74,500,
0:57:50 > 0:57:53which is amazing, considering it's her first project.
0:57:53 > 0:57:55And for Julie, it's all down to one thing.
0:57:55 > 0:57:58Anyone who is thinking of getting into property development -
0:57:58 > 0:58:01research, research and more research!
0:58:01 > 0:58:03I think if you've done some thorough research,
0:58:03 > 0:58:05it will pay dividends in the end.
0:58:08 > 0:58:11Find out what more proud owners did for their property next time.
0:58:11 > 0:58:16- So, join us here on Homes Under The Hammer.- Goodbye!- Goodbye!- Goodbye!