0:00:02 > 0:00:03Hello, and welcome to the show.
0:00:03 > 0:00:05Now, people buy property for all sorts of reasons -
0:00:05 > 0:00:08to live in, to invest in or just to buy and then sell on.
0:00:08 > 0:00:11Get it right, and many people think that investing in property is
0:00:11 > 0:00:14- better than keeping your money in the bank.- Absolutely.
0:00:14 > 0:00:17Hundreds of properties are sold every month at auction,
0:00:17 > 0:00:20and to help us with all the action is Mr Dion Dublin!
0:00:20 > 0:00:23Hello! Great to be here, but most people know me just as a footballer.
0:00:23 > 0:00:26I love my property, developed many properties, and I'm looking
0:00:26 > 0:00:30forward to seeing how the country's property developers get on.
0:00:54 > 0:00:57But there's a huge range of buyers and properties at an auction.
0:00:57 > 0:01:00Your best chance of securing success is to go prepared.
0:01:00 > 0:01:03Do your research, visit the property beforehand
0:01:03 > 0:01:06and read that all-important legal pack.
0:01:06 > 0:01:08And you've got to keep it cool in the auction room.
0:01:08 > 0:01:11Let's take a look at the three properties on today's show.
0:01:11 > 0:01:15In Birmingham, this developer drives a hard bargain with his builders.
0:01:15 > 0:01:18If they get it ready before, they get bonuses.
0:01:18 > 0:01:19If not, they'll be paying me!
0:01:21 > 0:01:23No need for haggling in Oldham,
0:01:23 > 0:01:27as it sounds like this developer's bought a property on Easy Street.
0:01:27 > 0:01:31For me, something like this, it's a walk in the park, as they say!
0:01:31 > 0:01:35'And I'll let you know if this house in Gravesend is a bargain.
0:01:35 > 0:01:36'If I ever get inside...'
0:01:36 > 0:01:38Ah! Well, access to London might be good,
0:01:38 > 0:01:41but access to the property is not so good!
0:01:42 > 0:01:45All of these properties have been sold at auction.
0:01:45 > 0:01:47We'll find out who bought them and what they paid for them
0:01:47 > 0:01:49when they went under the hammer.
0:01:49 > 0:01:53Sold to you, sir. Thank you very much. And your bidding number, sir?
0:01:53 > 0:01:55MUSIC: Kashmir by Led Zeppelin
0:01:55 > 0:01:58'The city of Birmingham has the largest population
0:01:58 > 0:02:02'outside of London, and its six universities make it the largest
0:02:02 > 0:02:05'centre of education - you guessed it - outside of London.
0:02:05 > 0:02:10'However, this great second city can claim something that London cannot.
0:02:15 > 0:02:19'It is the birthplace of heavy metal.
0:02:19 > 0:02:22'Bands such as Black Sabbath, Judas Priest
0:02:22 > 0:02:26'and half of Led Zeppelin originated from the city or nearby.
0:02:26 > 0:02:29'And today, I'm in Bordesley Green,
0:02:29 > 0:02:31'about two miles southeast of the city centre.'
0:02:33 > 0:02:37So, the city has a strong musical heritage, for sure,
0:02:37 > 0:02:39something to be very proud of.
0:02:39 > 0:02:40The big question is,
0:02:40 > 0:02:44will the property I'm here to see hit the right note?
0:02:44 > 0:02:45Well, it's on this busy main road,
0:02:45 > 0:02:47which isn't a particularly good start,
0:02:47 > 0:02:51but the guide price isn't too bad, £100,000 to £125,000 for this.
0:02:51 > 0:02:54It's a three-bed end-of-terrace.
0:02:54 > 0:02:56Is it going to need a Whole Lotta Love?
0:02:56 > 0:02:59Oh, come on, it's probably in a right state, isn't it?
0:02:59 > 0:03:02Or maybe I'm just being Paranoid.
0:03:02 > 0:03:04MUSIC: Paranoid by Black Sabbath
0:03:04 > 0:03:07'Leaving the musical puns to one side,
0:03:07 > 0:03:10'the first thing I've spotted is the state of the roof.
0:03:10 > 0:03:12'It doesn't look in too good a condition,
0:03:12 > 0:03:16'and I hope the rooms upstairs aren't suffering as a result.'
0:03:20 > 0:03:21Oh!
0:03:21 > 0:03:24Well, at least you've got an inner door there
0:03:24 > 0:03:27and so a little area which will definitely stop
0:03:27 > 0:03:29the noise from the road, which is good news.
0:03:29 > 0:03:32So, into the property, then, you've got this little corridor.
0:03:32 > 0:03:35Erm, it feels a little bit sort of claustrophobic.
0:03:35 > 0:03:38I don't suppose there's a lot else you could have,
0:03:38 > 0:03:39but it's not a particularly good start.
0:03:39 > 0:03:43Through to...well, other things we'll discover in a minute.
0:03:43 > 0:03:45But you have to see this room.
0:03:45 > 0:03:48- HE LAUGHS - It's the front living room.
0:03:48 > 0:03:52It's dual-aspect, so you've got a door out to the rear garden there,
0:03:52 > 0:03:56lots of light coming in through the bay window to highlight this
0:03:56 > 0:04:00absolutely sensational decoration.
0:04:02 > 0:04:03Could have predicted it, really.
0:04:03 > 0:04:05It's the ace of spades.
0:04:05 > 0:04:07# The only thing you see You know it's gonna be
0:04:07 > 0:04:11# The ace of spades, The ace of spades, all right!... #
0:04:11 > 0:04:15'I know, I know, I promise, no more heavy-metal gags.
0:04:15 > 0:04:16'Probably.
0:04:16 > 0:04:18'As individual as this decor is,
0:04:18 > 0:04:22'it's still a great room with plenty of potential.'
0:04:23 > 0:04:26So, through to the rear of the property, and a few signs
0:04:26 > 0:04:30of some serious rot going on with the skirting boards there.
0:04:30 > 0:04:32That is a bit of a worry,
0:04:32 > 0:04:34especially as this looks like it's a solid floor.
0:04:34 > 0:04:37Maybe there's rising damp. That's not ideal...
0:04:37 > 0:04:41What's also not ideal is this is where you would expect
0:04:41 > 0:04:43the kitchen to be.
0:04:43 > 0:04:47But, no, you have to go further, into the darkest,
0:04:47 > 0:04:51deepest reaches of the property, where you find this little add-on.
0:04:51 > 0:04:53Now, this should be the utility room, but, no, it is
0:04:53 > 0:04:56the only kitchen in the property. What were they thinking?
0:04:56 > 0:04:58Knock this down, take this wall out.
0:04:58 > 0:05:00I know it's a breast of a chimney
0:05:00 > 0:05:02so there'll be lots of mess and it'll cost a bit,
0:05:02 > 0:05:05but get rid of it, you need to open it all up or just make that
0:05:05 > 0:05:09the kitchen and this the utility room. That is how it should be.
0:05:09 > 0:05:12MUSIC: Automatic by The Pointer Sisters
0:05:12 > 0:05:15'There might be more to do to this house than just changing
0:05:15 > 0:05:16'the wallpaper.
0:05:16 > 0:05:21'But as decisions go, moving the kitchen is, well, a no-brainer.'
0:05:21 > 0:05:25# Automatic
0:05:25 > 0:05:27# Automatic... #
0:05:29 > 0:05:33So, a fairly tight little staircase, but what it does do is allow
0:05:33 > 0:05:37a lot of space - and usable space - for the rest of the house.
0:05:37 > 0:05:41So, upstairs the corridor splits two ways, that way to two bedrooms,
0:05:41 > 0:05:43both a pretty decent size.
0:05:43 > 0:05:47A good-size bathroom and loo upstairs, which is good news.
0:05:47 > 0:05:51I mean, it needs refurbishment, but sorting out the kitchen,
0:05:51 > 0:05:53sorting out that would really bring this house to life.
0:05:53 > 0:05:56And then through into the rear bedroom.
0:05:56 > 0:05:58Again, it's not a bad size.
0:05:58 > 0:06:00Some nice views out across some fields there.
0:06:00 > 0:06:04Oh. Erm, a bit of a problem with damp, though.
0:06:04 > 0:06:07Hm, don't like the look of that. Need to investigate further.
0:06:07 > 0:06:11Ooh, I don't like that, either, a boiler in the bedroom.
0:06:11 > 0:06:13Never a good thing.
0:06:13 > 0:06:17'At best, boilers can be noisy, and they're certainly not pretty,
0:06:17 > 0:06:20'and you're going to have to install a carbon-monoxide alarm
0:06:20 > 0:06:23'and make sure it's regularly serviced.
0:06:23 > 0:06:27'Personally, I'd not want it in my bedroom.
0:06:27 > 0:06:30'I'm off out the back to get another look at that roof.'
0:06:30 > 0:06:33Here's a bit of a tip. Look at that roof there.
0:06:33 > 0:06:37It's obvious that there's a problem, because these tiles have fallen off,
0:06:37 > 0:06:42but even if they hadn't, you'd notice those grey clippy things.
0:06:42 > 0:06:44They're actually put on to try
0:06:44 > 0:06:48and do a temporary repair on the roof when the nails which hold
0:06:48 > 0:06:51the slates in place have started to go, rust or whatever,
0:06:51 > 0:06:55and the wood itself that supports the roof has also started to rot.
0:06:55 > 0:06:57So if you see those kind of clippy things,
0:06:57 > 0:07:00it's an indication that at some point in the future,
0:07:00 > 0:07:02and probably in the fairly near future,
0:07:02 > 0:07:04the whole of the roof is going to need replacing.
0:07:04 > 0:07:07So that is definitely something to budget for.
0:07:11 > 0:07:15'And as we're talking budgets, what better time could there be to get
0:07:15 > 0:07:19'a local property expert to give this place the once-over?
0:07:19 > 0:07:22'First of all, what's the location of the house like?'
0:07:22 > 0:07:26The property's in a primary residential area close to
0:07:26 > 0:07:29local shops, and there's a hospital very close by.
0:07:29 > 0:07:33The local market here is very good for sales and lettings.
0:07:33 > 0:07:36It's quite popular.
0:07:36 > 0:07:39'Well, that's certainly positive news.
0:07:39 > 0:07:43'But the house still needs a lot of work, not least that roof.
0:07:43 > 0:07:46'How much would the total renovation work cost?'
0:07:46 > 0:07:49Refurbishment costs on this would be somewhere in the region
0:07:49 > 0:07:53of £15,000 to £20,000, including a new roof.
0:07:53 > 0:07:56'And that means, if you got this house for the guide price of between
0:07:56 > 0:08:01'100,000 and 125,000, your total spend could be
0:08:01 > 0:08:03'in the region of 145,000.
0:08:03 > 0:08:06'Does that leave any room for profit?'
0:08:08 > 0:08:11Once the property's complete, depending upon the standard
0:08:11 > 0:08:17of refurb, I would imagine achieving somewhere in the region of £160,000.
0:08:17 > 0:08:23I would anticipate a rental figure of around £650 per calendar month.
0:08:23 > 0:08:29'That would leave a potential profit of £15,000 or a 5% rental yield -
0:08:29 > 0:08:32'not amazing numbers, but a solid profit either way.'
0:08:34 > 0:08:35Well, apart from its position on the main road
0:08:35 > 0:08:38and a few potential problems with the roof,
0:08:38 > 0:08:42this is a really good property - nice size, nice proportions.
0:08:42 > 0:08:44Yeah, a good one to go for.
0:08:44 > 0:08:47Let's see who agreed when it went under the hammer.
0:08:49 > 0:08:52This next lot is a three-bedroomed,
0:08:52 > 0:08:56freehold end-terrace house at £100,000.
0:08:56 > 0:08:58Start me, if you will,
0:08:58 > 0:09:03at 100. What a buy this will be, sir, and thank you. At 100 I'm bid.
0:09:03 > 0:09:05Is there 110?
0:09:05 > 0:09:09There is. Thank you, sir. At 110. Do I have 115?
0:09:09 > 0:09:14I do. New bid at 115. At 115 I'm bid. Is it 120 now, sir?
0:09:14 > 0:09:19At 120 I'm bid, and thank you. At 120 I'm bid. Is it 125 now, sir?
0:09:19 > 0:09:21Are you sure?
0:09:21 > 0:09:25At £120,000, then...
0:09:25 > 0:09:26First time, then.
0:09:27 > 0:09:31122. Thank you, sir. At 122.
0:09:31 > 0:09:34124. Thank you, sir. 124.
0:09:34 > 0:09:36126, sir?
0:09:37 > 0:09:39125?
0:09:39 > 0:09:43125. Thank you, sir. 125. 126, is it?
0:09:43 > 0:09:49Are we all done? At 125,000 for the first time.
0:09:49 > 0:09:52125,000 second time.
0:09:52 > 0:09:55Third and last time. Are we all done?
0:09:55 > 0:09:57You've followed it all the way, sir.
0:09:57 > 0:09:59And it's yours. Congratulations. Well done.
0:09:59 > 0:10:02MUSIC: Johnny B Goode by Chuck Berry
0:10:02 > 0:10:05'The successful bidder was Johnny, who
0:10:05 > 0:10:10'together with wife Yasmin, run a property rental business.
0:10:10 > 0:10:13'I met up with them back at the house to find out what they
0:10:13 > 0:10:16'plan to do with this latest investment.'
0:10:16 > 0:10:18# Go, go
0:10:18 > 0:10:20# Go, Johnny, go, go... #
0:10:20 > 0:10:25- Johnny, Yasmin, good to meet you both. Congratulations!- Thank you.
0:10:25 > 0:10:27Tell me why you wanted to buy this house.
0:10:27 > 0:10:32We wanted to buy this property to sell it, erm, do it up
0:10:32 > 0:10:36- and sell it, and this is our first project.- Oh, great!- Yeah.
0:10:36 > 0:10:39Why this one for your first project?
0:10:39 > 0:10:43We live not far from here, so this is close to home.
0:10:43 > 0:10:46I viewed it before going to auction and I liked it,
0:10:46 > 0:10:50and I think it's quite a good area, this one.
0:10:50 > 0:10:54- And I've got the builders in the area, as well, so...- Right.
0:10:54 > 0:10:57So, Yasmin, is this a bit of a new family venture?
0:10:57 > 0:11:02I let him do the venturing part! I just keep him in check!
0:11:02 > 0:11:04So he's going to do all the work
0:11:04 > 0:11:08- and you're just going to keep an eye on him.- His little PA!- Yeah? Really?
0:11:08 > 0:11:10So what will, actually, you be doing?
0:11:10 > 0:11:15Most probably the paperwork and, you know, keep the figures in line.
0:11:15 > 0:11:18- Right. Well, that's pretty important.- Yes.
0:11:18 > 0:11:20So tell me, what are you going to do with it, then?
0:11:20 > 0:11:23With this one, we're going to do the roof up.
0:11:24 > 0:11:28And the kitchen we're going to do up, and the bathroom,
0:11:28 > 0:11:33and the rest of it is plastering and all that.
0:11:33 > 0:11:34Because we're going to sell it,
0:11:34 > 0:11:39we don't want to spend too much money on changing anything, so...
0:11:39 > 0:11:42just more or less spend the least money
0:11:42 > 0:11:44- and make more money out of it. - OK, well, that makes sense.
0:11:44 > 0:11:47- What's the budget? - The budget...
0:11:47 > 0:11:51- There's no fixed budget, but I'm thinking there is about £15,000.- OK.
0:11:51 > 0:11:54So... It's not a fixed budget.
0:11:54 > 0:11:58If it goes over, it goes over, so it's not a problem.
0:11:58 > 0:12:00'Johnny's budget seems realistic.
0:12:00 > 0:12:02'It's in line with the agent's estimate.
0:12:02 > 0:12:06'However, Yasmin will have to keep a tight rein on those figures.
0:12:06 > 0:12:09'The couple have had experience in buying to let,
0:12:09 > 0:12:12'but this is their first venture in developing to sell on,
0:12:12 > 0:12:15'and if they're determined to do that they'll have to protect that
0:12:15 > 0:12:17'slim profit margin.
0:12:17 > 0:12:20'They'll have major structural issues to deal with,
0:12:20 > 0:12:24'but thankfully they'll be going for a more neutral decor.'
0:12:24 > 0:12:26So the interior decor will be slightly
0:12:26 > 0:12:29toned down from what it is at the moment?
0:12:29 > 0:12:32- It will be!- Definitely! - Definitely from this!
0:12:33 > 0:12:37We're going to get another fireplace and brighten this place up.
0:12:37 > 0:12:41- Brilliant. So, what's the timescale for sorting it?- Timescale...
0:12:41 > 0:12:44The builders, they said between eight to 12 weeks,
0:12:44 > 0:12:46but I'll put a challenge to them
0:12:46 > 0:12:50that if they get it ready before, they get bonuses.
0:12:50 > 0:12:52If not, they'll be paying me!
0:12:53 > 0:12:55And you've really written that into a contract?
0:12:55 > 0:12:59- Cos that would be quite good! - No, it's a verbal contract!
0:12:59 > 0:13:02Otherwise they'll be just sitting here and having sandwiches
0:13:02 > 0:13:05and killing the time.
0:13:05 > 0:13:08- So if they finish it early, they get a bonus.- They get a bonus.
0:13:08 > 0:13:11One of them, I said to him, "Name a price.
0:13:11 > 0:13:13"What sort of bonus are you looking at?"
0:13:13 > 0:13:18- He said 10%, so I said, "That's fine."- Right!- Off the profit.
0:13:18 > 0:13:22- I'm happy with that.- But will they reduce it by 10% if they're late?
0:13:22 > 0:13:24Might be 20%!
0:13:25 > 0:13:28I think you're going to do well at this game, do you know that?
0:13:28 > 0:13:29I think I will!
0:13:31 > 0:13:33Well, listen, congratulations and good luck with it.
0:13:33 > 0:13:38- Thank you very much.- Look forward to seeing how you get on.- Thank you.
0:13:38 > 0:13:42Hm! Well, I think Johnny and Yasmin have chosen well here.
0:13:42 > 0:13:46But doing up a property to sell on is a completely different
0:13:46 > 0:13:49ball game than doing up a property to rent out.
0:13:49 > 0:13:51Numbers really matter.
0:13:51 > 0:13:53How will they get on? Will they stick to the budget?
0:13:53 > 0:13:55And will, at the end of the day,
0:13:55 > 0:13:58they manage to sell this place at a profit?
0:13:58 > 0:14:01You can find out later in the show.
0:14:06 > 0:14:09'The growth of Oldham in Lancashire was due mainly
0:14:09 > 0:14:10'to the cotton industry,
0:14:10 > 0:14:13with properties built to house the mill workers
0:14:13 > 0:14:15'employed in the large factories in the town.
0:14:17 > 0:14:19'The mills stopped a while back,
0:14:19 > 0:14:23'but some industry still remains in printing and food manufacturing.
0:14:23 > 0:14:29'Indeed, 90% of cakes produced for M&S are baked in Oldham.'
0:14:29 > 0:14:32And another thing about Oldham is one of England's greatest
0:14:32 > 0:14:35midfield players, Mr Paul Scholes, came from here, as well.
0:14:35 > 0:14:38Now, will this property be star quality, like Paul was?
0:14:38 > 0:14:40We can find out.
0:14:40 > 0:14:45It's a two-bed mid-terrace with a guide price of £35,000 to £45,000.
0:14:45 > 0:14:49'That's one of the smallest front gardens I've ever seen!
0:14:49 > 0:14:51'But apart from that, the outside looks OK.'
0:14:53 > 0:14:55OK, a bit of a porchway here.
0:14:55 > 0:14:58But massive, high ceilings!
0:14:58 > 0:15:02Nice-size room, this. Quite a nice, pretty fireplace over here.
0:15:02 > 0:15:04I'm hoping that is...
0:15:04 > 0:15:05HOLLOW BANGING
0:15:05 > 0:15:08..real. But it's not, as you can hear. But a nice-size room.
0:15:08 > 0:15:12Into the second reception room, again which is of a decent size.
0:15:12 > 0:15:15You know, you'd get maybe a table and chairs in here,
0:15:15 > 0:15:17even a sofa over there.
0:15:17 > 0:15:19But there's really bad damp.
0:15:19 > 0:15:21It's actually that bad that it's bowed the ceiling.
0:15:21 > 0:15:24I'd like to find out where that comes from.
0:15:24 > 0:15:29# We got to patch it up, baby Before we fall apart at the seams
0:15:31 > 0:15:33# We got to patch it up, baby
0:15:33 > 0:15:36# We can't let time unravel our dreams... #
0:15:36 > 0:15:39'OK, damp patches on the downstairs ceiling suggest a water pipe
0:15:39 > 0:15:43'might be to blame. But what else might need some TLC?'
0:15:43 > 0:15:45Into the kitchen.
0:15:45 > 0:15:48It is small, and it would just need a brand-new kitchen in here,
0:15:48 > 0:15:49which would be fine.
0:15:49 > 0:15:52That would need to be checked out, those electrics there.
0:15:52 > 0:15:56That socket would need to be looked at. But have a look at this.
0:15:56 > 0:15:59Staircase into the kitchen starts on the second step.
0:15:59 > 0:16:02That's a little bit quirky for me.
0:16:02 > 0:16:05'Quirky and possibly a bit dangerous.'
0:16:05 > 0:16:07Upstairs to where the two bedrooms are.
0:16:07 > 0:16:11The main bedroom at the front of the house, which is a decent size.
0:16:11 > 0:16:13Here to bedroom two,
0:16:13 > 0:16:16which is that little bit smaller, but you've got a big crack
0:16:16 > 0:16:20underneath there which would have to get looked at as soon as possible.
0:16:20 > 0:16:22And the bathroom's just here.
0:16:22 > 0:16:26Now, that would explain the ceiling damp that we've seen downstairs,
0:16:26 > 0:16:28because this is directly above it.
0:16:28 > 0:16:31- # That's the reason why - That's the reason why
0:16:31 > 0:16:34- # The reason why - That's the reason why... #
0:16:34 > 0:16:36'Well, if indeed a leak in the bathroom is to
0:16:36 > 0:16:38'blame for the damp damage downstairs,
0:16:38 > 0:16:42'the same can't be true for the odd patches in the two bedrooms.
0:16:42 > 0:16:45'For those, I'd check the roof and the guttering out.
0:16:47 > 0:16:50'Outside at the back, there's a small yard and a garage,
0:16:50 > 0:16:52'which could be used for storage.
0:16:52 > 0:16:54'But the roof looks like it could
0:16:54 > 0:16:56'possibly be made of asbestos cement panels,
0:16:56 > 0:17:00'which is safe enough if it's not deteriorated or broken up.
0:17:00 > 0:17:03'I'd get that checked out, and, if it is asbestos
0:17:03 > 0:17:06'and you want to get rid of it, definitely get an expert in.
0:17:08 > 0:17:12'Talking of experts, what could a local estate agent tell us
0:17:12 > 0:17:15'about this house and the area it's in?'
0:17:16 > 0:17:21You're very close to the local amenities in Oldham town centre.
0:17:21 > 0:17:24We've got the tram link and also good bus links
0:17:24 > 0:17:26and a good range of local schools,
0:17:26 > 0:17:32ranging for a variety of ages from toddlers up to teenagers.
0:17:33 > 0:17:37'So, location-wise it's pretty good. But what about the property itself?'
0:17:37 > 0:17:41These are very traditional terraced houses. They're all very similar.
0:17:41 > 0:17:45There are no immediate issues with this property that I think
0:17:45 > 0:17:48require re-arrangement of any rooms.
0:17:48 > 0:17:51The ceiling up here in the dining room is bowing
0:17:51 > 0:17:54and will obviously require replacement.
0:17:54 > 0:17:58'OK, so once that work was carried out, how did this property,
0:17:58 > 0:18:02'that was guided at £35,000 to £45,000 at auction,
0:18:02 > 0:18:04'stack up as a financial investment?'
0:18:05 > 0:18:06Once refurbished,
0:18:06 > 0:18:10I would expect to achieve in the region of £58,000 to £60,000,
0:18:10 > 0:18:12or for let, I would expect to achieve
0:18:12 > 0:18:17between £350 per calendar month and £375 per calendar month.
0:18:21 > 0:18:24This property did seem quite straightforward,
0:18:24 > 0:18:26but there's more to this house than first meets the eye.
0:18:26 > 0:18:30Let's see who wanted it when it went under the hammer.
0:18:33 > 0:18:38Right, lot number nine, £35,000 to £45,000.
0:18:38 > 0:18:42Mid-terraced house, situated popular residential area, Clarksfield.
0:18:42 > 0:18:45Lounge, dining room, kitchen, two bedrooms and bathroom.
0:18:45 > 0:18:47At £40,000 am I bid?
0:18:47 > 0:18:5035, then? At 35. Is that a bid, sir?
0:18:50 > 0:18:5435 here. At £35,000.
0:18:54 > 0:18:56At £35,000. Are we done?
0:18:56 > 0:18:5936. 37.
0:18:59 > 0:19:0137. New bidder. 38.
0:19:01 > 0:19:07Where are we? 38 I'm bid. 39 at the back, someone? See a paddle?
0:19:07 > 0:19:0939 here. 40.
0:19:09 > 0:19:11Can you?
0:19:11 > 0:19:1640 I'm bid. 41. 42. New bidder. 42.
0:19:16 > 0:19:2043. 44. Can you?
0:19:20 > 0:19:2444 I'm bid. 45. 46 I'm bid. 7.
0:19:24 > 0:19:2648.
0:19:26 > 0:19:2948. 49.
0:19:29 > 0:19:3150.
0:19:31 > 0:19:34No? Here at 49.
0:19:34 > 0:19:38At £49,000, then. With you, sir, on the pillar. Against you two.
0:19:38 > 0:19:40At £49,000.
0:19:40 > 0:19:44First time, then. At £49,000. Second time. All done?
0:19:44 > 0:19:46All out, selling away.
0:19:46 > 0:19:50Well done, sir. Can I have your paddle number, please?
0:19:50 > 0:19:54'And so the successful bid of £49,000 for the two-bed mid-terrace
0:19:54 > 0:19:57'house in Oldham was made by Tariq.
0:19:57 > 0:20:01'Tariq and his brother Saeed are local property developers,
0:20:01 > 0:20:05'and they've bought this house on behalf of a client.'
0:20:05 > 0:20:08- Tariq, nice to meet you. Congratulations.- Thank you.
0:20:08 > 0:20:10Tell me about the auction experience.
0:20:10 > 0:20:13Yeah, well, I've been to auction quite a few times,
0:20:13 > 0:20:15so I'm used to the experience now.
0:20:15 > 0:20:17But this time, I think it was more nerve-racking.
0:20:17 > 0:20:19I was doing it on behalf of an investor,
0:20:19 > 0:20:22so I was making sure I kept in their limits,
0:20:22 > 0:20:25and we got the right price for the property, hopefully.
0:20:25 > 0:20:28- Were you on your own? - I was actually with the investor.
0:20:28 > 0:20:30Keep an eye on us, make sure we don't go over their limit!
0:20:30 > 0:20:32LAUGHS So they trust you?
0:20:32 > 0:20:35- You've got people that trust you to buy their properties for them?- Yeah.
0:20:35 > 0:20:39Well, we've done it, we've bought lots ourselves and invested
0:20:39 > 0:20:42and bought and sold for the last so many years.
0:20:42 > 0:20:44But what we've started doing is helping investors actually
0:20:44 > 0:20:45purchase property.
0:20:45 > 0:20:49They give us their budget, we go through, we do the due diligence for
0:20:49 > 0:20:53them and we tell them the figures, what to buy within, and obviously
0:20:53 > 0:20:56look at their investment pot and what they've got to spend
0:20:56 > 0:20:57and then try and take it from there.
0:20:57 > 0:20:59Why did they want this particular house?
0:20:59 > 0:21:02- They've got family, they've got a house on the street already.- Ah!
0:21:02 > 0:21:04But what it is with a lot of investors,
0:21:04 > 0:21:06first-time investors or even
0:21:06 > 0:21:08investors that are a bit more experienced,
0:21:08 > 0:21:11they tend to want property within their geographical location.
0:21:11 > 0:21:16- Yeah.- Easy to manage, easy to keep an eye on and so forth.
0:21:16 > 0:21:19'Tariq started renovating properties around eight years ago,
0:21:19 > 0:21:23'and he reckons he's bought and sold over 100 properties.
0:21:23 > 0:21:28'He generally buys around 20 houses a year, 15 or so of which he will
0:21:28 > 0:21:31'do up and sell on, and a few he will hang on to, to rent out.
0:21:32 > 0:21:36'But his role at this house is as a property consultant,
0:21:36 > 0:21:39'where he will advise and oversee both the purchase
0:21:39 > 0:21:42'and the refurbishment of the property on behalf of an investor.'
0:21:44 > 0:21:46What is the budget to try and turn this property around?
0:21:46 > 0:21:49- The budget's not massive. Maybe 3,000, 4,000.- Yeah.
0:21:49 > 0:21:52£3,000 or £4,000. And try and see if we can do it within that.
0:21:52 > 0:21:55So things like the carpets will have to go,
0:21:55 > 0:21:58some of the wallpaper looks a bit dingy.
0:21:58 > 0:22:00- DION LAUGHS - But at the same time,
0:22:00 > 0:22:03if it can get painted and it's not ripped, there's not too much damp,
0:22:03 > 0:22:04we can salvage that, as well.
0:22:04 > 0:22:07In, I think, the second reception, the ceiling needs looking at.
0:22:07 > 0:22:11There's a few areas of damp and the odd bits here
0:22:11 > 0:22:14and there that we would maybe need professionals to come in.
0:22:14 > 0:22:16I'm going to give you two more - there's a crack,
0:22:16 > 0:22:18and the wiring, the electrics.
0:22:18 > 0:22:22On a property like this, especially if it's being tenanted,
0:22:22 > 0:22:25I would advise anybody purchasing
0:22:25 > 0:22:29to get a check on the wiring by a professional person.
0:22:29 > 0:22:33- I have seen the crack. It's upstairs under one of the wardrobes...- Yes.
0:22:33 > 0:22:36..in the smaller bedroom. I don't think it's anything serious.
0:22:36 > 0:22:38These are old terraced properties
0:22:38 > 0:22:40and I've helped people finance properties in the area.
0:22:40 > 0:22:43There's been historical movement in this area on a lot
0:22:43 > 0:22:46of the streets, and the houses are quite safe now.
0:22:46 > 0:22:49But sometimes it's just wall ties. So it's not a massive cost.
0:22:49 > 0:22:51It could add a bit to the budget.
0:22:51 > 0:22:55We're hoping it's nothing serious, but if it is and it needs
0:22:55 > 0:22:59rectifying, they'll have to find the budget and just get that work done.
0:22:59 > 0:23:02'Well, one thing I wanted to pick up on was that potentially
0:23:02 > 0:23:06'problematic roof at the back. What has Tariq planned for that?'
0:23:06 > 0:23:09Same again, get a professional in, get that checked.
0:23:09 > 0:23:12And I think there's sometimes people in the council that can come
0:23:12 > 0:23:15and check for you, just to clarify if it is or not.
0:23:15 > 0:23:16But if that is asbestos,
0:23:16 > 0:23:20then it was going to be used as a storage or a garage, but it'll
0:23:20 > 0:23:24have to be closed off until they can get that fixed,
0:23:24 > 0:23:26which would be as soon as possible, hopefully,
0:23:26 > 0:23:29to make it safe for any person living in the property.
0:23:29 > 0:23:32- Safety first, always.- Definitely, especially if you've got a tenant.
0:23:32 > 0:23:35Even if you're living in the property, you'd want it to be safe.
0:23:35 > 0:23:37So, yeah, definitely.
0:23:37 > 0:23:40'Tariq has local tradesmen he uses to refurbish his properties
0:23:40 > 0:23:42'and will recommend them to his investors,
0:23:42 > 0:23:45'who also plan to help out with some of the labouring and paintwork.
0:23:45 > 0:23:48'And it's hoped that they'll be ready for the rental market
0:23:48 > 0:23:50'in four to six weeks.'
0:23:53 > 0:23:57- I wish you all the best.- Thank you very much.- Good luck, Tariq.- Thanks.
0:23:57 > 0:24:00'How will Tariq get on with turning this property around on such
0:24:00 > 0:24:05'a tight budget and timescale? Find out later on in the programme.'
0:24:05 > 0:24:08'Coming up, have these four friends in Kent made
0:24:08 > 0:24:10'a profitable decision at the pub?'
0:24:10 > 0:24:13We're in a pub-quiz team together, and we just thought one night,
0:24:13 > 0:24:15"We'll buy somewhere and see if we can do it up."
0:24:17 > 0:24:21'And we get some words of advice from our developer in Oldham.'
0:24:21 > 0:24:23You've got to buy at the right price.
0:24:23 > 0:24:25It's all about what you pay for the property.
0:24:30 > 0:24:36'Back now to Birmingham, and do you remember this three-bed end-terrace?
0:24:36 > 0:24:37'No?
0:24:37 > 0:24:39'How about now?'
0:24:39 > 0:24:44# I remember you... #
0:24:44 > 0:24:45'Ah, yes.
0:24:45 > 0:24:48'Guided at £100,000 to £125,000,
0:24:48 > 0:24:53'the house with the striking decor was difficult to forget.
0:24:53 > 0:24:57'Not only that, the kitchen had been crammed into a space only fit to
0:24:57 > 0:25:00'be a utility room and there were damp patches that made me
0:25:00 > 0:25:03'worry about the state of the roof.'
0:25:03 > 0:25:06Here's a bit of a tip. Look at that roof there.
0:25:06 > 0:25:09You notice those grey clippy things?
0:25:09 > 0:25:13They're actually put on to try and do a temporary repair on the roof.
0:25:13 > 0:25:16So if you see those kind of clippy things,
0:25:16 > 0:25:19it's an indication that at some point in the future
0:25:19 > 0:25:21the whole of the roof is going to need replacing.
0:25:21 > 0:25:24# Cos the roof's got a hole in it
0:25:25 > 0:25:31# And everything's been ruined by the rain... #
0:25:31 > 0:25:35'It was bought at auction by Johnny for £125,000.
0:25:35 > 0:25:38'He and his wife Yasmin run a property rental company
0:25:38 > 0:25:41'and had spotted the roof problem straight away.
0:25:41 > 0:25:43'He'd set a timescale of eight to 12 weeks
0:25:43 > 0:25:48'but had a cunning plan to get the builders to stick to schedule.'
0:25:48 > 0:25:51- So if they finish it early, they get a bonus.- They get a bonus.
0:25:51 > 0:25:55I said to him, "Name a price." He said 10%, so I said, "That's fine."
0:25:55 > 0:25:58Right! But will they reduce it by 10% if they're late?
0:25:58 > 0:26:01Might be 20%!
0:26:01 > 0:26:04I think you're going to do well at this game, do you know that?
0:26:04 > 0:26:06I think I will!
0:26:07 > 0:26:10'Though Johnny had a lot of property experience,
0:26:10 > 0:26:13'this was the first he'd bought specifically to sell.
0:26:13 > 0:26:17'Would he and Yasmin be able to stick to their £15,000 budget
0:26:17 > 0:26:19'and bring in a profit?
0:26:21 > 0:26:24'Four months later, and we've returned.
0:26:24 > 0:26:26'And what a difference.
0:26:28 > 0:26:31'Gone is the dark, overbearing wallpaper,
0:26:31 > 0:26:35'replaced with neutrals to create a bright and welcoming space.
0:26:35 > 0:26:39'The wall between what should have been the kitchen and what WAS
0:26:39 > 0:26:43'the kitchen has been removed, making - hey, presto - a kitchen!
0:26:43 > 0:26:47'It's now a lovely, spacious kitchen/diner.
0:26:47 > 0:26:50'Upstairs, Johnny and Yasmin have completely retiled
0:26:50 > 0:26:54'and refitted the bathroom, and it looks stunning.
0:26:54 > 0:26:56'But all of this great work would be for nothing
0:26:56 > 0:26:59'if they hadn't got that roof fixed.'
0:26:59 > 0:27:02The roof itself wasn't a problem, but it was just getting
0:27:02 > 0:27:04the right quotes to have the roof done.
0:27:04 > 0:27:08Once we got the right quote, it was done in a few days.
0:27:08 > 0:27:10There was a bit of damp in the house,
0:27:10 > 0:27:14but once we'd done the roof it sorted the damp issues out.
0:27:14 > 0:27:18The roofer originally put the red tiles on there.
0:27:18 > 0:27:21We didn't want the red tiles, so we told him to remove the tiles
0:27:21 > 0:27:24- and put them...- I don't think he was too pleased with that!
0:27:26 > 0:27:27- # That's the way - Uh-huh
0:27:27 > 0:27:29# Uh-huh, I like it
0:27:29 > 0:27:31- # Uh-huh - Uh-huh... #
0:27:31 > 0:27:33'That's the voice of experience talking.
0:27:33 > 0:27:37'Skilled tradesmen are invaluable, but anyone can make a mistake,
0:27:37 > 0:27:42'and when that happens it's crucial you speak up and get what you want.
0:27:42 > 0:27:46'With the roof fixed, the whole house was replastered and repainted.
0:27:46 > 0:27:48'And what a difference!
0:27:48 > 0:27:50'Johnny and Yasmin mainly used tradesmen,
0:27:50 > 0:27:54'so has Johnny been hands-on during the redevelopment?'
0:27:54 > 0:27:57I was here most of the time, just checking out the works
0:27:57 > 0:28:00and everything and making sure everything was done to my plan.
0:28:00 > 0:28:02'And what was Yasmin's role?'
0:28:02 > 0:28:04She was the finance minister, really!
0:28:04 > 0:28:06Yeah, keeping him under control
0:28:06 > 0:28:10and not letting him get carried away with the finances.
0:28:10 > 0:28:14But we did choose the stuff together, colours and everything.
0:28:14 > 0:28:18'And did the finance minister manage to keep the spending under control?'
0:28:18 > 0:28:24The money we wanted to spend was £15,000, £16,000, but my finance...
0:28:24 > 0:28:27We weren't limited to the budget.
0:28:27 > 0:28:29But we wanted to make a good job,
0:28:29 > 0:28:31especially as it's our first project,
0:28:31 > 0:28:33so we weren't really looking at our pockets,
0:28:33 > 0:28:36we were looking at the stuff we wanted to buy for the property.
0:28:36 > 0:28:38- A better-quality product. - Yeah.
0:28:38 > 0:28:40'Hm, OK, well, that is admirable,
0:28:40 > 0:28:43'but this meant they ended up spending 20 grand
0:28:43 > 0:28:47'on the renovation, and they're determined to sell rather than rent.
0:28:47 > 0:28:52'Does that mean that all-important profit margin has disappeared?
0:28:52 > 0:28:56'The couple also ended up taking longer than they'd planned.'
0:28:56 > 0:28:59One other setback was that we took the radiators off and we had
0:28:59 > 0:29:03the whole house plastered, and that took time drying.
0:29:03 > 0:29:06Had we had the heating on, it would have dried quicker,
0:29:06 > 0:29:09so it took a really long time drying the plaster.
0:29:09 > 0:29:13'Yeah, yeah, absolutely, I can completely understand.
0:29:13 > 0:29:15'And, erm, nothing to all to do with the fact that Johnny decided'
0:29:15 > 0:29:17'to go on holiday, then...?'
0:29:19 > 0:29:20Whoo!
0:29:20 > 0:29:24It's the first holiday that he's been by himself.
0:29:24 > 0:29:27And he was sending me pictures of him just enjoying himself.
0:29:27 > 0:29:29Just making her jealous, really!
0:29:32 > 0:29:34'Well, they spent a little more money
0:29:34 > 0:29:36'and it's taken a little more time,
0:29:36 > 0:29:39but there's no denying the house looks great.
0:29:39 > 0:29:42'We've asked along two local estate agents to see
0:29:42 > 0:29:44'if they're equally impressed.'
0:29:44 > 0:29:47I think the work that these people have done is
0:29:47 > 0:29:48to a very high standard.
0:29:48 > 0:29:50I'm very surprised. It looks really good.
0:29:50 > 0:29:52They've worked it well.
0:29:52 > 0:29:55There's a lot of do-up-and-sells going on around here,
0:29:55 > 0:29:58a lot of people trying to flip properties about.
0:29:58 > 0:29:59The quality here is actually pretty good.
0:29:59 > 0:30:02So, I think people will be impressed with the kitchen,
0:30:02 > 0:30:04they'll be impressed with the bathroom.
0:30:04 > 0:30:06I don't think he could have done too much more
0:30:06 > 0:30:07within the boundaries that he's got.
0:30:07 > 0:30:11'Along with the £20,000 they spent on development,
0:30:11 > 0:30:15'Johnny and Yasmin spent £125,000 at auction.
0:30:15 > 0:30:18'Can they make a profit on their first buy-to-sell
0:30:18 > 0:30:21'with their £145,000 investment?'
0:30:22 > 0:30:25The resale valuation would be somewhere between
0:30:25 > 0:30:28£155,000 and £165,000.
0:30:28 > 0:30:30So, my valuation for this property, top end,
0:30:30 > 0:30:32£155,000.
0:30:32 > 0:30:35Rental figure, somewhere in the region of
0:30:35 > 0:30:38£675 to £700 per calendar month.
0:30:38 > 0:30:41If this property was to be offered for rent,
0:30:41 > 0:30:43I would assume you would be looking at about
0:30:43 > 0:30:45£675 per calendar month.
0:30:46 > 0:30:49- I think a little bit more. - I'd think we would sell it
0:30:49 > 0:30:51a bit more than what the valuation has come out.
0:30:51 > 0:30:55The valuation is what people are prepared to pay at the moment.
0:30:55 > 0:30:58This is quite a good location, so obviously people
0:30:58 > 0:31:02are willing to pay a bit more than what the valuation is of properties.
0:31:02 > 0:31:06'That top sales figure of £165,000 would give Johnny
0:31:06 > 0:31:09'and Yasmin a profit of 20 grand.
0:31:09 > 0:31:11'But Johnny's absolutely right,
0:31:11 > 0:31:14'a house is worth what somebody's prepared to pay for it.
0:31:14 > 0:31:17'So, now that they've finished their first buy-to-sell property,
0:31:17 > 0:31:19'do they plan on doing more?'
0:31:21 > 0:31:24Yes, definitely. The experience was really good.
0:31:24 > 0:31:27We took our time and we didn't let ourselves get stressed about it.
0:31:27 > 0:31:30Yeah, we never get stressed out.
0:31:30 > 0:31:32Yeah. At our pace!
0:31:39 > 0:31:42'Gravesend was once a flourishing destination
0:31:42 > 0:31:45'and was one of England's first resort towns,
0:31:45 > 0:31:48'thriving from the early tourist trade of the 19th century.
0:31:49 > 0:31:52'The steamboats brought business from London.
0:31:52 > 0:31:54'But it's not all about the water.
0:31:54 > 0:31:57'Both road and rail links make Gravesend an attractive
0:31:57 > 0:32:01'prospect for London commuters and keeps it as a bustling town.'
0:32:03 > 0:32:06I am only a five-minute walk from all the local amenities,
0:32:06 > 0:32:08including the train station,
0:32:08 > 0:32:11and with a high-speed rail service here from Gravesend,
0:32:11 > 0:32:16that means you are less than half an hour to St Pancras International.
0:32:16 > 0:32:20You certainly can't deny that this two-bed end-of-terrace with
0:32:20 > 0:32:26a guide price of 115,000 to 125,000 is well-connected.
0:32:30 > 0:32:33Ah. Well, access to London might be good,
0:32:33 > 0:32:35but access to the property is not so good!
0:32:35 > 0:32:37SHE LAUGHS
0:32:37 > 0:32:39Maybe I can try and get in downstairs.
0:32:42 > 0:32:45'Having two doors is handy, as is a basement,
0:32:45 > 0:32:48'but entering by the basement door doesn't really do it for me.'
0:32:51 > 0:32:53"Dusty", "dirty", "damp" -
0:32:53 > 0:32:57just a few words that spring to mind in the first room I walk in.
0:32:57 > 0:33:01Yeah, a bit of a disappointment, actually. Not a great space.
0:33:01 > 0:33:04And it's clear to see a lot of work will be done.
0:33:04 > 0:33:07Now, you expect basements to be dingy and dark,
0:33:07 > 0:33:09but this really is something else,
0:33:09 > 0:33:13a kitchen which harks back to many moons ago,
0:33:13 > 0:33:16so all of this need to be completely updated.
0:33:16 > 0:33:19It's filthy, as well! And up here, what have we got?
0:33:19 > 0:33:22A little half-landing and a loo out the back.
0:33:22 > 0:33:23I'm going to investigate further.
0:33:23 > 0:33:27# I can only disappoint you
0:33:27 > 0:33:32# Cos I always let you down... #
0:33:35 > 0:33:38'Not the best first impression,
0:33:38 > 0:33:41'and already the layout is a little confusing.
0:33:41 > 0:33:44'The kitchen is down in the basement with an exit out to the rear garden,
0:33:44 > 0:33:46'while up on the ground floor,
0:33:46 > 0:33:49'there's a really good-sized lounge and a big bathroom,
0:33:49 > 0:33:53'which, despite its size, is inexplicably missing a loo!
0:33:57 > 0:33:59'It definitely doesn't feel like it's in the right place.
0:33:59 > 0:34:02'And going up to the first floor, there's two bedrooms,
0:34:02 > 0:34:06'one at the front and one at the back.
0:34:06 > 0:34:10'There's no doubt that this layout doesn't suit modern family living,
0:34:10 > 0:34:13'but there's definitely the scope here to either create
0:34:13 > 0:34:16'a better family house or split the property into two flats,
0:34:16 > 0:34:20'especially as it already has a kitchen downstairs,
0:34:20 > 0:34:22'two back doors and two front doors!
0:34:22 > 0:34:27'However, there are a couple of issues that are still nagging me.'
0:34:29 > 0:34:32Now, I can see some nice little garden at the front there,
0:34:32 > 0:34:36but most of the neighbours, I see, have opted to turn theirs
0:34:36 > 0:34:39into off-road parking, which isn't a terrible idea,
0:34:39 > 0:34:42as there isn't any on the street here.
0:34:42 > 0:34:43You've got double yellow lines.
0:34:43 > 0:34:47However, there's a bit of an issue across the nation's front gardens.
0:34:47 > 0:34:50Local authorities feel the loss of natural drainage could
0:34:50 > 0:34:52contribute to local flooding.
0:34:52 > 0:34:55So it's worth checking out what the options are,
0:34:55 > 0:34:58because with no on-street parking, we could be staring
0:34:58 > 0:35:02at the major downside to this property right in that bush.
0:35:03 > 0:35:07'So you'll need to check if creating parking here will be allowed.
0:35:07 > 0:35:09'And then... Well, have a look at this.'
0:35:11 > 0:35:15Now, just because there is a building site next door,
0:35:15 > 0:35:17it doesn't mean you should run for the hills.
0:35:17 > 0:35:20A quick search and you would discover that this old council
0:35:20 > 0:35:25building right here is being turned into some new, shiny flats,
0:35:25 > 0:35:28and it's in keeping with what's happening in the broader
0:35:28 > 0:35:33picture around Gravesend, where just last year local councillors
0:35:33 > 0:35:39agreed the first stages of a £120 million regeneration for the town,
0:35:39 > 0:35:42which is so exciting.
0:35:42 > 0:35:45For an investor, a building site is a sign of regeneration
0:35:45 > 0:35:49and a helping hand in turning a profit.
0:35:51 > 0:35:52'So, what do you think?
0:35:52 > 0:35:55'I'm pretty convinced that this dingy property has
0:35:55 > 0:35:57'lots of possibilities and potential.
0:36:00 > 0:36:03'What does a local estate agent think of this three-storey
0:36:03 > 0:36:07'end-terrace that's guided at £115,000 to £125,000?'
0:36:07 > 0:36:10There's many options with this particular property.
0:36:10 > 0:36:14One would be just to redecorate it, refurbish it and keep it as
0:36:14 > 0:36:17one unit for either sales or rentals,
0:36:17 > 0:36:20depending on the owner's plans.
0:36:20 > 0:36:24The other possibility is to actually convert it into two properties,
0:36:24 > 0:36:27whereby you could end up with a ground-floor one-bedroom
0:36:27 > 0:36:29or studio apartment,
0:36:29 > 0:36:34then above you would have a two-bedroom split-level maisonette.
0:36:35 > 0:36:37'If split into two properties,
0:36:37 > 0:36:39'the combined rental could be in the region of
0:36:39 > 0:36:43'£1,100 to £1,200 per calendar month
0:36:43 > 0:36:49'or £750 to £800 per calendar month if kept as a three-bed house.
0:36:49 > 0:36:52'What about the resale value?'
0:36:52 > 0:36:53With this particular property,
0:36:53 > 0:36:56if it's refurbished to a very high standard
0:36:56 > 0:36:59and we build in the wow factor, there is a possibility that
0:36:59 > 0:37:04somebody may be prepared to pay £195,000, subject to contract.
0:37:04 > 0:37:09If the property was converted, again, to a very high standard,
0:37:09 > 0:37:13I would expect that the ground-floor unit would reach
0:37:13 > 0:37:16approximately 85,000 to 90,000
0:37:16 > 0:37:20and the two-bedroom first- and second-floor maisonettes
0:37:20 > 0:37:24would probably make around
0:37:24 > 0:37:28150,000, 160,000, subject to contract.
0:37:28 > 0:37:31So there's plenty of work to be done to drag this property
0:37:31 > 0:37:35out of the seventies and get it right back up to date.
0:37:35 > 0:37:38But the local market is on the up and demand is outstripping
0:37:38 > 0:37:43supply, so the timing might be just right to grab this property.
0:37:43 > 0:37:46Let's see who was tempted when it went under the hammer.
0:37:48 > 0:37:52Let's get cracking. Can I now invite your bids for lot one?
0:37:52 > 0:37:54Do I see 115 anywhere?
0:37:54 > 0:37:56110, then?
0:37:56 > 0:37:59110. I'm on the way. 115 now, can I say?
0:37:59 > 0:38:01115. 120, sir?
0:38:01 > 0:38:03120. 125?
0:38:03 > 0:38:06125. 130. 135.
0:38:06 > 0:38:10'This was a busy auction house, with competitive bidders,
0:38:10 > 0:38:12'and the price soon rose.
0:38:12 > 0:38:16'We rejoin the bidding at £160,000.'
0:38:16 > 0:38:20160. 160. 161 now.
0:38:20 > 0:38:23161 I have. 162?
0:38:24 > 0:38:26162. 163? Are you coming back in, sir?
0:38:26 > 0:38:31163, yes. 163. With you at £163,000.
0:38:31 > 0:38:36Are we all done? I shall sell, then, for the first time.
0:38:36 > 0:38:38For the second time.
0:38:38 > 0:38:41Are you quite sure? Third and final time at 163,000.
0:38:41 > 0:38:43- Quite sure? All done? - HAMMER BANGS
0:38:43 > 0:38:45Sold to you, sir. Thank you very much.
0:38:47 > 0:38:52'And that successful bid of £163,000 came from Shane.
0:38:52 > 0:38:53'But he doesn't come alone,
0:38:53 > 0:38:57'bidding on behalf of a team who, after 40 years of friendship,
0:38:57 > 0:38:59'have decided to take their first step
0:38:59 > 0:39:01'in property development together.'
0:39:04 > 0:39:05Good morning, chaps!
0:39:05 > 0:39:07ALL: Morning!
0:39:07 > 0:39:10How lovely! What a fine sight, to have four of you to chat to today!
0:39:11 > 0:39:15'Shane, Hugh, Jay and Martin
0:39:15 > 0:39:19'pooled their resources for this venture together.'
0:39:22 > 0:39:25We're still chums, and we see each other every week.
0:39:25 > 0:39:27We're in a pub-quiz team together,
0:39:27 > 0:39:31and we just thought one night at the pub quiz, "Well, we're all getting
0:39:31 > 0:39:34"old, we've come up to retirement now, what are we going to do?"
0:39:34 > 0:39:37And, stupidly - and that was after a few drinks - we thought,
0:39:37 > 0:39:41"Ooh, it'd be a good idea. We'll buy somewhere, see if we can do it up."
0:39:41 > 0:39:45- So, did you all visit the property prior to the auction?- ALL: Yeah.
0:39:45 > 0:39:47- At least once. - Yeah.
0:39:47 > 0:39:48We had a bit of trouble,
0:39:48 > 0:39:52though, because when we came to the auction, the guy that was showing us
0:39:52 > 0:39:56about from the auction company took us round and said,
0:39:56 > 0:40:00"Oh, I can't shut this back door. Somebody's opened the back door."
0:40:00 > 0:40:02Of course, it had been shut for a long time.
0:40:02 > 0:40:04He said, "Can you give us a hand?"
0:40:04 > 0:40:07So I went round the back, and he said, "Right, I'll pull it."
0:40:07 > 0:40:09I went to push it
0:40:09 > 0:40:12and put my arm through the glass and smashed the glass in the back.
0:40:12 > 0:40:16So you had to buy it! "I've broken the glass - put the price up!"
0:40:18 > 0:40:20So, what happens now?
0:40:20 > 0:40:23Hugh, talk me through what the next stage is going to be for you guys.
0:40:23 > 0:40:25Right. Our builder friend has looked at the place,
0:40:25 > 0:40:28and we've talked through a few proposals.
0:40:28 > 0:40:30We basically have Plan A and Plan B.
0:40:30 > 0:40:34- Plan A is to turn the basement into a one-bedroom flat...- Mm-hm.
0:40:34 > 0:40:37..and the rest of the building to be turned into a two-bedroom flat.
0:40:37 > 0:40:40But that's subject to planning permission and building regs.
0:40:40 > 0:40:42What is your Plan B?
0:40:42 > 0:40:46Plan B is to leave it as one unit and just renovate it.
0:40:46 > 0:40:47'Both plans are good,
0:40:47 > 0:40:50'but the decider should always be the figures.
0:40:50 > 0:40:53'So I'm guessing they've done some sums.'
0:40:53 > 0:40:56We've got some indicative prices with regards to doing the two jobs.
0:40:56 > 0:40:59If it's a single entity, it'll be about 20,000.
0:40:59 > 0:41:02But if it was to be split into two, which we probably want to be doing,
0:41:02 > 0:41:05it's about £40,000, we think, that will be the costs to produce that.
0:41:05 > 0:41:09- OK.- And that's very much on the basis that the four of us will be
0:41:09 > 0:41:13involved as much as we can in terms of the sort of
0:41:13 > 0:41:15- labouring elements of the work. - Really?
0:41:15 > 0:41:17- I was going to move on to that! - You three!
0:41:17 > 0:41:20And you're just going to be telling them what to do.
0:41:20 > 0:41:23- Absolutely. That's the plan! - He will be making the coffee.
0:41:25 > 0:41:28'So they're going to get their sleeves rolled up.
0:41:28 > 0:41:32'Unfortunately, though, there isn't a plumber or electrician among them.
0:41:32 > 0:41:35'Shane worked for the police, Hugh was an accountant,
0:41:35 > 0:41:38'Martin a solicitor, while Jay worked in public health.'
0:41:40 > 0:41:44What skills, what can you each individually bring to the table?
0:41:44 > 0:41:47Well, there's a lovely bit of ironwork just outside,
0:41:47 > 0:41:49nice sort of wrought-iron railings
0:41:49 > 0:41:51which I quite fancy sort of tarting up.
0:41:51 > 0:41:53OK. That's got your name on it.
0:41:53 > 0:41:56We're taking down the chimney breasts throughout the building.
0:41:56 > 0:41:58And he's doing a bit of painting, which sounds right.
0:41:58 > 0:42:01That doesn't surprise us at all, to be perfectly honest!
0:42:01 > 0:42:03So, what are you going to bring to the table?
0:42:03 > 0:42:07I think, like these two here, I've basically had me own house
0:42:07 > 0:42:10for 30-odd years, got some DIY skills at home.
0:42:10 > 0:42:13This is a great opportunity to hone those skills and
0:42:13 > 0:42:14develop other skills.
0:42:14 > 0:42:17And the builder we've been talking to will hopefully give us
0:42:17 > 0:42:19an opportunity to use the tools a bit more,
0:42:19 > 0:42:22perhaps a bit of plastering, perhaps a bit of brickwork,
0:42:22 > 0:42:24I don't quite know, whatever comes along.
0:42:24 > 0:42:27So when we finish this you've got that sense of achievement
0:42:27 > 0:42:29and actually you're in a better position to commence
0:42:29 > 0:42:31the new project as and when we've settled this
0:42:31 > 0:42:34and we've got the money left to buy another property.
0:42:34 > 0:42:37- So you really want to be hands-on here.- Absolutely, yes.- Fantastic.
0:42:37 > 0:42:39So, what's the timescale, the realistic timescale,
0:42:39 > 0:42:41you've set yourselves?
0:42:41 > 0:42:42- Nine months?- Realistically?
0:42:42 > 0:42:46I would love it if you all said different things at the same time!
0:42:46 > 0:42:48- Oops!- We did discuss this yesterday, didn't we?- Yeah. Yeah.
0:42:48 > 0:42:51- So, come on, timescale. All say it together. Go.- ALL:- Nine months.
0:42:51 > 0:42:53Six to nine months.
0:42:54 > 0:42:57You really are looking forward to this, aren't you?
0:42:57 > 0:43:00I am so pleased for all of you. I've never met such a lovely group,
0:43:00 > 0:43:02and I really do hope it all works out.
0:43:02 > 0:43:05- It's been smashing meeting you today. Thank you.- ALL: Thank you.
0:43:05 > 0:43:09With four people in charge, all with their own ideas, I am wondering
0:43:09 > 0:43:12how long it will be before we start wheeling out
0:43:12 > 0:43:14the cooks and broth metaphors.
0:43:14 > 0:43:17Or do many hands make light work?
0:43:17 > 0:43:21It's clear to me that these boys are set to have some fun, which is
0:43:21 > 0:43:23great, but it'll be no laughing matter
0:43:23 > 0:43:27if the council rejects their profitable Plan A.
0:43:27 > 0:43:30Join me later in the programme and you can see what the outcome is.
0:43:34 > 0:43:37We've seen how one property turned out, but what about the other two?
0:43:37 > 0:43:39Yeah. Do we think it's gone well?
0:43:39 > 0:43:42Well, you can never tell. Let's take a look.
0:43:47 > 0:43:51'So, back to Oldham now and this two-bed terraced house
0:43:51 > 0:43:55'with a guide price of £35,000 to £45,000.
0:43:55 > 0:43:58'Its high ceilings gave it a real feeling of space,
0:43:58 > 0:44:01'but there were obvious problems right away,
0:44:01 > 0:44:04'a damp ceiling indicating a plumbing problem from above.'
0:44:04 > 0:44:07Upstairs to where the two bedrooms are.
0:44:07 > 0:44:09You've got a big crack underneath there,
0:44:09 > 0:44:13which would have to get looked at as soon as possible.
0:44:13 > 0:44:15# Crack me up!... #
0:44:15 > 0:44:18'Now, a crack like that could mean very little,
0:44:18 > 0:44:22'or it could mean an expensive structural problem.
0:44:22 > 0:44:25'Not only that, but there were electrics to check
0:44:25 > 0:44:29'and a complete overhaul of the decoration.
0:44:29 > 0:44:32'None of this seemed to faze successful bidder Tariq,
0:44:32 > 0:44:37'who bought the house on behalf of an investor for £49,000.'
0:44:37 > 0:44:39Doesn't seem to frighten you. You've done it many times.
0:44:39 > 0:44:42No, I've got a lot of experience in doing this.
0:44:42 > 0:44:45I've been doing it for the last seven years.
0:44:45 > 0:44:48For me, something like this, it's a walk in the park, as they say.
0:44:48 > 0:44:50# That's why I'm easy
0:44:50 > 0:44:55# Ah, ah-ah-ah
0:44:55 > 0:45:01# I'm easy like Sunday morning... #
0:45:06 > 0:45:08'Yes, Tariq is an experienced developer
0:45:08 > 0:45:13'and was advising his client on how to make the most of this investment.
0:45:13 > 0:45:16'The client had a budget of £3,000 to £4,000 to spend
0:45:16 > 0:45:18'and a timescale of four to six weeks.'
0:45:20 > 0:45:23MUSIC: Roxette by Dr Feelgood
0:45:23 > 0:45:26'Four months later, and we return to see what the owners did
0:45:26 > 0:45:29'to their first investment property.'
0:45:42 > 0:45:45Well, basically, on this property it's just been spruced up.
0:45:45 > 0:45:48The property has been painted, new carpets,
0:45:48 > 0:45:50all the rubbish has been taken out of the property
0:45:50 > 0:45:55and it's just been a small refurb job, really.
0:45:55 > 0:45:58'Tariq advised his client on how to deal with some of
0:45:58 > 0:46:00'the trickier issues, such as
0:46:00 > 0:46:03'that big crack in the wall that did concern me.'
0:46:03 > 0:46:06Yeah, this is the wall where the crack was originally.
0:46:06 > 0:46:11We've had a structural engineer in to rectify the crack.
0:46:11 > 0:46:15They've put wall ties in and skimmed over, so now that's ready to go,
0:46:15 > 0:46:18and hopefully it'll last for a good few years.
0:46:18 > 0:46:20MUSIC: Call Me by Spagna
0:46:20 > 0:46:24'Tariq has given his client advice on the project management,
0:46:24 > 0:46:26'while the client and his family did
0:46:26 > 0:46:28'the work as well as being involved in
0:46:28 > 0:46:32'getting the crack sorted, the plumbing and that wiring fixed.
0:46:34 > 0:46:38'As Tariq said when I first met him, it's always a case of safety first.
0:46:38 > 0:46:42'It's much more important than any fancy renovation.
0:46:42 > 0:46:44'As a landlord, you have a legal obligation
0:46:44 > 0:46:47'to make sure the house is free from hazards,
0:46:47 > 0:46:49'so when it comes to gas and electrics
0:46:49 > 0:46:53'and anything like that, call in the experts.'
0:46:53 > 0:46:55# Call me
0:46:55 > 0:46:58- # Call me - Baby, baby
0:46:58 > 0:47:01# Do, do, do it
0:47:01 > 0:47:03# Baby, please!... #
0:47:04 > 0:47:08'So, what does Tariq think of the final job now the owner's got
0:47:08 > 0:47:09'the property ready to rent?'
0:47:11 > 0:47:13Well, I've been doing this for some years now,
0:47:13 > 0:47:15and I've got quite a lot of experience in this,
0:47:15 > 0:47:17but in areas such as the bathroom
0:47:17 > 0:47:19I would have gone for a new bathroom suite.
0:47:19 > 0:47:23I think the kitchen was salvageable, but there are elements
0:47:23 > 0:47:26that you can spruce up just to give that property a different style.
0:47:26 > 0:47:28But I think they'll learn. It's their first property.
0:47:28 > 0:47:31I think we've all been through this learning curve.
0:47:31 > 0:47:34So, with the money that they were working with, I think
0:47:34 > 0:47:35it's quite a good job.
0:47:35 > 0:47:40'The new owner spent about £2,000 on the property, and it's taken him
0:47:40 > 0:47:43'three months, because they've been doing it in their spare time.
0:47:43 > 0:47:46'That can be a bit of a false economy,
0:47:46 > 0:47:49'as obviously you're losing rent in that time.
0:47:49 > 0:47:51'And although the property will probably be pitched
0:47:51 > 0:47:54'OK for the rental market in this area, I can't help agreeing
0:47:54 > 0:47:58'with Tariq that some things could have been made a bit better.
0:47:58 > 0:48:01'After all, if you have a well-maintained property
0:48:01 > 0:48:03'and a happy tenant who will want to stay for the long term,
0:48:03 > 0:48:07'that will save you money in the end, with no void periods.
0:48:07 > 0:48:10'Still, all part of the learning curve for new developers.
0:48:10 > 0:48:15'We asked two local estate agents along to get their opinion.'
0:48:15 > 0:48:17The property is a good size,
0:48:17 > 0:48:21particularly suitable for the first-time buyer or perhaps
0:48:21 > 0:48:23the buy-to-let investor, and the size
0:48:23 > 0:48:27of the property will be a real positive.
0:48:27 > 0:48:30This is my first time inside the property.
0:48:30 > 0:48:34I think the works have been carried out to a fairly basic level.
0:48:34 > 0:48:37But it's certainly now in a lettable standard.
0:48:37 > 0:48:40'Reassuring news, because renting out the property is
0:48:40 > 0:48:43'exactly what the new owner intends to do.
0:48:43 > 0:48:47'So, having bought the property for £49,000 at auction
0:48:47 > 0:48:51'and spent only £2,000 doing it up, let's hear those valuations.'
0:48:51 > 0:48:53I think the rent for this property in its current
0:48:53 > 0:48:55condition would be in the region of
0:48:55 > 0:48:58£400 to £425 per calendar month.
0:48:58 > 0:49:00I would expect a rental income
0:49:00 > 0:49:04of around £400 per calendar month.
0:49:04 > 0:49:05If this property was put on the market
0:49:05 > 0:49:08in the current conditions, I'd expect to achieve
0:49:08 > 0:49:10a figure around £65,000.
0:49:10 > 0:49:12I would expect the property to achieve
0:49:12 > 0:49:15between £65,000 and £70,000.
0:49:17 > 0:49:19'With a total spend of £51,000,
0:49:19 > 0:49:23'those higher values would give the owners a yield of 10% or
0:49:23 > 0:49:28'a sale profit of £19,000, minus the usual taxes and expenses.
0:49:28 > 0:49:31'But as a property developer himself,
0:49:31 > 0:49:34'what does Tariq think of those crucial rental valuations?'
0:49:36 > 0:49:39I think for this property, it'd be realistic.
0:49:39 > 0:49:43We have had properties that we've managed for the investors
0:49:43 > 0:49:46in the area, and we are achieving up to 450, as well.
0:49:46 > 0:49:49But for the level of work that the current owner has done on this
0:49:49 > 0:49:54property, I think between 400 and 425 is a realistic price.
0:49:54 > 0:49:58'Tariq's got his client a potentially profitable investment,
0:49:58 > 0:50:00'so as a seasoned developer,
0:50:00 > 0:50:03'what advice would he give to any property beginners?'
0:50:03 > 0:50:05The best advice, I would say,
0:50:05 > 0:50:07is you've got to buy at the right price.
0:50:07 > 0:50:11It's all about what you pay for the property. Obviously, do your maths.
0:50:11 > 0:50:15If it's a lot of structural work or a lot of builders' work
0:50:15 > 0:50:17inside the property, you've got to take
0:50:17 > 0:50:19that into consideration, take builders with you.
0:50:19 > 0:50:23But it's all about what you pay for the property at the start.
0:50:29 > 0:50:32'Time to return to Gravesend in Kent,
0:50:32 > 0:50:35'where I looked at this two-bed end-of-terrace.
0:50:35 > 0:50:36'At least, well, I tried to.'
0:50:38 > 0:50:40Ah. Well, access to London might be good,
0:50:40 > 0:50:42but access to the property is not so good!
0:50:42 > 0:50:45# I've been locked out
0:50:45 > 0:50:47# And I know we're through
0:50:47 > 0:50:50# But I can't begin to face up to the truth... #
0:50:52 > 0:50:55'Handily, there was an entrance to the basement,
0:50:55 > 0:50:59'and although this was guided at just £115,000 to £125,000
0:50:59 > 0:51:04'and had some good-sized rooms, I wasn't very impressed.
0:51:04 > 0:51:06'It was a bit, well, all over the place.
0:51:06 > 0:51:09'It had a kitchen in the basement, a WC in the lobby
0:51:09 > 0:51:11'and a bathroom with no toilet at all.
0:51:11 > 0:51:16'What this place needed was a squad of strapping men to sort it out.'
0:51:18 > 0:51:20MUSIC: The Boys Are Back In Town by Thin Lizzy
0:51:20 > 0:51:25'Enter Shane, Hugh, Jay and Martin, four friends who had thought long
0:51:25 > 0:51:30'and hard before parting with the £163,000 for the property at action.
0:51:30 > 0:51:32'Hadn't they?'
0:51:32 > 0:51:36We're in a pub-quiz team together, and we just thought one night,
0:51:36 > 0:51:38stupidly - and that was after a few drinks -
0:51:38 > 0:51:42we thought, "We'll buy somewhere and see if we can do it up."
0:51:42 > 0:51:43'Hm... Oh, dear.
0:51:43 > 0:51:45'They hope to split the property into two,
0:51:45 > 0:51:48'a basement flat and a main two-bed house.
0:51:48 > 0:51:51'But failing that, they would develop the property as is.
0:51:51 > 0:51:57'With a budget of up to £40,000 and a timescale of six to nine months,
0:51:57 > 0:51:58'they got stuck in.
0:52:00 > 0:52:05'Almost 12 months later, and it's time to see what our fired-up
0:52:05 > 0:52:07'foursome have managed to do.'
0:52:07 > 0:52:09MUSIC: She Sells Sanctuary by The Cult
0:52:14 > 0:52:16'Well, it's obvious it's not finished yet,
0:52:16 > 0:52:20'but the eagle-eyed amongst you will have spotted two kitchens,
0:52:20 > 0:52:24'so, yes, this will become two properties.
0:52:24 > 0:52:26'There's a one-bed studio flat in the basement,
0:52:26 > 0:52:29'and to create the two-bed maisonette on the upper floors
0:52:29 > 0:52:30'they've ripped out
0:52:30 > 0:52:34'most of the walls to create an open-plan kitchen/living area
0:52:34 > 0:52:37'and reconfigured upstairs to fit in the bathroom
0:52:37 > 0:52:39'alongside the two bedrooms.
0:52:39 > 0:52:41'That's no small job.
0:52:42 > 0:52:45'A strategy was needed, as Jay can explain.'
0:52:47 > 0:52:51Yeah, we particularly enjoyed all the planning meetings in the pubs,
0:52:51 > 0:52:54and so far, so good, all going well.
0:52:54 > 0:52:57I think these things inevitably take longer than you imagine,
0:52:57 > 0:53:00especially for the first time some of us have been involved
0:53:00 > 0:53:03in the process, and then the added dimension was around this
0:53:03 > 0:53:05being part of a conservation area.
0:53:05 > 0:53:08So where we wanted to change, for example, the front door
0:53:08 > 0:53:13and things like that, we had to get additional planning approval.
0:53:13 > 0:53:16'OK, chaps, so, it's all very well having meetings to thrash out
0:53:16 > 0:53:18'the plans in the pub,
0:53:18 > 0:53:21'but you are quite a bit behind that nine-month time schedule.
0:53:21 > 0:53:25'Have you been having pub meetings a little bit too often?'
0:53:25 > 0:53:27We've hardly ever been there.
0:53:28 > 0:53:31But on the occasions we do go, we don't always agree,
0:53:31 > 0:53:34but we don't fall out about things.
0:53:34 > 0:53:38We have differences of opinion and we come to a shared conclusion.
0:53:38 > 0:53:39So it's fine.
0:53:39 > 0:53:44'Hardly ever been at the pub, Hugh? I'm not sure I believe you.
0:53:44 > 0:53:46'Is that true, Jay?'
0:53:46 > 0:53:49Pretty much, but it's about time one of the others bought a round.
0:53:51 > 0:53:54# Tell me lies, tell me sweet little lies
0:53:55 > 0:53:58- # Tell me lies - Tell me, tell me lies... #
0:53:58 > 0:54:01'OK, boys, porky pies aside,
0:54:01 > 0:54:04'given that renovations can be fraught with fall-outs,
0:54:04 > 0:54:07'Martin seems to think they've kept their four-way friendship.'
0:54:07 > 0:54:11Well, I think we've got on very well together, actually.
0:54:11 > 0:54:15We've each got our particular strengths and weaknesses,
0:54:15 > 0:54:18and those have fitted together very well.
0:54:18 > 0:54:19Well, Hugh's an accountant,
0:54:19 > 0:54:22so he's done the majority of the accountancy for us.
0:54:22 > 0:54:24Martin is a solicitor,
0:54:24 > 0:54:27he has obviously done lots of the legal work,
0:54:27 > 0:54:29obviously in consultation with us.
0:54:29 > 0:54:31I come from an administrative background
0:54:31 > 0:54:32and sort of project management.
0:54:32 > 0:54:35And Jay is very good at making coffee.
0:54:35 > 0:54:38'Shane, I'm sure that is going to cost you a drink or two!
0:54:38 > 0:54:41'It's not just each other they had to get along with.
0:54:41 > 0:54:42'When you're doing building work,
0:54:42 > 0:54:45'you have to get on with your neighbours, as well.
0:54:45 > 0:54:47'And that can be easier said than done,
0:54:47 > 0:54:50'especially when the neighbours' builders accidentally drove
0:54:50 > 0:54:54'a truck through their back-garden wall. Hm...'
0:54:56 > 0:55:00But actually, at the end of the day, it's worked out very well for us.
0:55:00 > 0:55:04We've agreed that they will topsoil a strip of land about two metres
0:55:04 > 0:55:08beyond our previous boundary, so at the end of the day
0:55:08 > 0:55:13we've gained something like 36, 40 square metres of land.
0:55:13 > 0:55:16'Some free extra back garden is not a bad bonus.
0:55:16 > 0:55:18'Throughout the project,
0:55:18 > 0:55:20'the fantastic foursome have been getting
0:55:20 > 0:55:24'stuck in alongside their builders, but soon the builders will
0:55:24 > 0:55:28'wrap up, just leaving the final painting and decorating to be done.
0:55:29 > 0:55:32They budgeted £40,000 for the development
0:55:32 > 0:55:38'but are now estimating a final cost of 55 on top of the 163 grand
0:55:38 > 0:55:39'they paid at auction,
0:55:39 > 0:55:43'as there was more structural work needed than they expected.
0:55:43 > 0:55:46'And almost inevitably, planning did take longer.
0:55:46 > 0:55:48'But has it all been worth it?
0:55:48 > 0:55:52'We asked along two local estate agents to get their opinion.'
0:55:54 > 0:55:57I think there's always a demand for quality properties,
0:55:57 > 0:56:02and at the moment I believe there is a shortage of properties,
0:56:02 > 0:56:05so if you've got something and if it is of a good quality, I think
0:56:05 > 0:56:07it will go very quickly.
0:56:07 > 0:56:09I think the owners have done a really good job here.
0:56:09 > 0:56:12They've converted it into two units, both of which will sell
0:56:12 > 0:56:16quite readily or be able to be rented out fairly quickly.
0:56:16 > 0:56:20'Their projected final cost is £218,000,
0:56:20 > 0:56:24'but now they have two properties in a high-demand area.
0:56:24 > 0:56:26'If they get the finish to a suitably high standard,
0:56:26 > 0:56:30'the top rental valuation the estate agents said they could hope for
0:56:30 > 0:56:34'was up to £600 per calendar month for the basement flat
0:56:34 > 0:56:38'and £800 per calendar month for the upper-floor maisonette.
0:56:38 > 0:56:40'But it's sales that they're really interested in.
0:56:40 > 0:56:42'Let's start now with the basement.'
0:56:42 > 0:56:44It should make somewhere in the region
0:56:44 > 0:56:46of £95,000.
0:56:46 > 0:56:48That should achieve a price in the region
0:56:48 > 0:56:50of £90,000.
0:56:50 > 0:56:53And the upper flat should sell for somewhere in the region
0:56:53 > 0:56:55of £175,000.
0:56:55 > 0:56:58That property should achieve a price in the region
0:56:58 > 0:57:01of £160,000.
0:57:01 > 0:57:03Clearly, both give us a reasonable profit.
0:57:03 > 0:57:05The upper one is obviously better than the lower one,
0:57:05 > 0:57:07but, yeah, very happy with it, yeah.
0:57:07 > 0:57:12And this is always defined by who can sell it quicker, and that
0:57:12 > 0:57:14dictates what you're prepared to accept
0:57:14 > 0:57:17so we can move on to the next, really.
0:57:17 > 0:57:21'With the upper sales estimate totalling 270,000, Shane, Jay, Hugh
0:57:21 > 0:57:26'and Martin stand to make a potential profit of £52,000,
0:57:26 > 0:57:29'minus the usual taxes and expenses.
0:57:29 > 0:57:32'Well, I think you can call that a success.
0:57:32 > 0:57:36'So, is it "time" to call a meeting to plan the next development, boys?'
0:57:36 > 0:57:39We do of course have an unwritten rule that every
0:57:39 > 0:57:41board meeting for the company has to be in a different pub.
0:57:41 > 0:57:45JAY: That's the real reason most of us are involved in the project,
0:57:45 > 0:57:47as you've probably guessed!
0:57:47 > 0:57:49That's where we're going at the moment.
0:57:52 > 0:57:55Well, that's it for today's show. We'll be back with more action
0:57:55 > 0:57:59- from the auction for you next time.- And more property adventures.
0:57:59 > 0:58:02We'll see you for more Homes Under The Hammer.
0:58:02 > 0:58:04- Goodbye.- Goodbye.