0:00:02 > 0:00:05Hello, welcome to the show. Now, to be a successful property investor,
0:00:05 > 0:00:06it helps to have an eye for a bargain.
0:00:06 > 0:00:08Yeah, to be a better property investor, it's
0:00:08 > 0:00:11always good to know why it's a bargain in the first place.
0:00:11 > 0:00:13Yes, there is always a reason for those low prices.
0:00:13 > 0:00:17So if you've got a bit of property know-how, put it to good use
0:00:17 > 0:00:19and buy your next home under the hammer.
0:00:44 > 0:00:47There's no way to avoid problems as a property investor,
0:00:47 > 0:00:51but there are ways you can make things go a little more smoothly.
0:00:51 > 0:00:55Yes, always read the legal pack and any other information you can
0:00:55 > 0:00:57lay your hands on, and then give it a go.
0:00:57 > 0:01:00So what did the buyers on today's show actually go for?
0:01:01 > 0:01:05In Liverpool, there's a house with a missing ingredient.
0:01:05 > 0:01:06Most of all, these providers
0:01:06 > 0:01:08would want to see a working kitchen and a bathroom.
0:01:08 > 0:01:10And I don't think that would suffice.
0:01:12 > 0:01:15In Stoke, there's a terrace with a clean bill of health.
0:01:15 > 0:01:20No obvious signs of damp and no cracks as well. Perfect.
0:01:21 > 0:01:24And in London, there's a smell of...
0:01:24 > 0:01:27hm, not quite success, I'm afraid.
0:01:27 > 0:01:30And the first thing that really hits me is the damp!
0:01:30 > 0:01:32But you can really smell it.
0:01:33 > 0:01:35All these properties have been sold at auction.
0:01:35 > 0:01:38We'll find out who bought them and how much they paid
0:01:38 > 0:01:40when they went under the hammer.
0:01:44 > 0:01:49Under half an hour's drive from Liverpool city centre lies Huyton.
0:01:49 > 0:01:52Huyton's notable not only for its good transport links
0:01:52 > 0:01:57and shops but as the home to four mop-topped young lads whose
0:01:57 > 0:02:00band changed the entire course of popular music forever.
0:02:00 > 0:02:04# Oh, if you find the time Please come and stay a while
0:02:04 > 0:02:08# In my beautiful neighbourhood. #
0:02:08 > 0:02:11'90s indie band Space. I loved them.
0:02:11 > 0:02:14Uh, who did you think I was talking about?
0:02:14 > 0:02:17So, on the border between Huyton and Broad Green,
0:02:17 > 0:02:22not far from the beginning of the M-62 motorway, and a short
0:02:22 > 0:02:26drive into Liverpool city centre is the property I am here to see.
0:02:26 > 0:02:3070,000 quid, three-bed, semidetached. Boom.
0:02:30 > 0:02:33# Boom, shake, shake Shake the room
0:02:33 > 0:02:36# Boom, shake, shake Shake the room. #
0:02:36 > 0:02:38Well, for a guide price of 70,000,
0:02:38 > 0:02:41I sincerely hope this house doesn't shake.
0:02:41 > 0:02:42Time to check out the inside.
0:02:45 > 0:02:46OK, so what have we got?
0:02:46 > 0:02:48Smallish little entrance area here,
0:02:48 > 0:02:51but lots of light coming into this bit, which is good.
0:02:51 > 0:02:53Stairs up to your bedrooms.
0:02:53 > 0:02:57And so along the hallway I'd normally expect, what, a kitchen,
0:02:57 > 0:03:00back sitting room? Oh, no.
0:03:00 > 0:03:01This is odd.
0:03:01 > 0:03:05This is what I imagine was originally one of -
0:03:05 > 0:03:07if not the only - bathroom in the property.
0:03:07 > 0:03:11And for starters, downstairs. And secondly, it is very dark and...
0:03:11 > 0:03:12and I just...
0:03:12 > 0:03:15As layouts go, it's not ideal.
0:03:15 > 0:03:17Because, actually, the rest of it is OK.
0:03:17 > 0:03:20You come through that door there, you've got this really nice,
0:03:20 > 0:03:24open-plan sort of living/dining area.
0:03:24 > 0:03:26Sort of through kind of feel.
0:03:26 > 0:03:29So this is good. That bit is a bit odd.
0:03:29 > 0:03:32So it needs a bit of playing with. But let's continue.
0:03:34 > 0:03:38So I imagine, at one point, the house would have ended here.
0:03:38 > 0:03:40And I get a feeling this is an addition to the property
0:03:40 > 0:03:44added on at a later stage, which now creates a really good-sized kitchen.
0:03:44 > 0:03:47Well, it is the sort of kitchen which of course throws up all sorts
0:03:47 > 0:03:49of issues when it comes to getting a mortgage, cos most
0:03:49 > 0:03:53mortgage providers would want to see a working kitchen and a bathroom.
0:03:53 > 0:03:54I don't think that would suffice.
0:03:54 > 0:03:57But it is a nice-sized space.
0:03:57 > 0:04:00And you've got views out to the back garden.
0:04:00 > 0:04:02And so, as downstairs go, pretty darn good.
0:04:05 > 0:04:09And upstairs, as you'd expect, are the house's three bedrooms.
0:04:09 > 0:04:13In addition, though, is the shell of what clearly used to be a bathroom.
0:04:16 > 0:04:18Now, I don't know why it was moved,
0:04:18 > 0:04:20but if you want this house to appeal to a family market,
0:04:20 > 0:04:24then you could do a lot worse than reinstating the bathroom here.
0:04:28 > 0:04:30Well, out the back of the property,
0:04:30 > 0:04:35and you can see exactly what that kitchen is built in.
0:04:35 > 0:04:37Obviously, an extension.
0:04:37 > 0:04:40A flat-roof extension, which can be a bit of an issue.
0:04:40 > 0:04:42It is not that pretty either, is it?
0:04:42 > 0:04:44And obviously, you can see the back of the garage there.
0:04:44 > 0:04:46So if you look around on the street -
0:04:46 > 0:04:49that's always a good thing to do - see what other people have done.
0:04:49 > 0:04:50You can use that for inspiration.
0:04:50 > 0:04:53Next door, of course, amazing extension stuff going on.
0:04:53 > 0:04:58So I think there is a possibility of incorporating that a bit
0:04:58 > 0:04:59better than it currently is.
0:04:59 > 0:05:02Because I think at the moment, it could be quite problematic.
0:05:02 > 0:05:05But out the back here, a really nice thing. A good-sized garden.
0:05:05 > 0:05:10And, you know, you get this feeling of sort of leafy suburbia.
0:05:10 > 0:05:11And it is really rather pleasant.
0:05:11 > 0:05:15# I'm just a jealous guy. #
0:05:15 > 0:05:17Yes, I've got house envy.
0:05:17 > 0:05:21This house is a developer's dream as it is a blank canvas.
0:05:21 > 0:05:25If you are developing to sell or rent, just make sure the cost
0:05:25 > 0:05:27of any structural changes
0:05:27 > 0:05:29doesn't exceed the ceiling price for the area.
0:05:31 > 0:05:34Time to ask an agent from the auction house who sold it
0:05:34 > 0:05:35what he thinks of this three-bedroom
0:05:35 > 0:05:38house guided at ?£70,000.
0:05:38 > 0:05:41There is comprehensive work to be done. But I think
0:05:41 > 0:05:43with the right work done,
0:05:43 > 0:05:46this will appeal to a broad range of buyers.
0:05:46 > 0:05:47And I would expect this to sell
0:05:47 > 0:05:49relatively quickly on the open market once finished.
0:05:51 > 0:05:55Comprehensive work usually means a significant budget,
0:05:55 > 0:05:58so how much does he reckon you would need to spend to bring this
0:05:58 > 0:06:00up to spec for the local market?
0:06:02 > 0:06:05Depending on your contractors, I believe you would be
0:06:05 > 0:06:09looking at in the region of £20,000 to get this into suitable condition.
0:06:09 > 0:06:13With a guide price of 70,000 and a potential renovation budget
0:06:13 > 0:06:16of 20,000, would this make a profitable venture?
0:06:16 > 0:06:18What could it sell for?
0:06:19 > 0:06:21I believe this property could achieve
0:06:21 > 0:06:24a figure in the region of £120,000 once renovated.
0:06:26 > 0:06:28And if you were to rent the property?
0:06:29 > 0:06:32I feel this property could certainly achieve a figure
0:06:32 > 0:06:34in the region of £600 per calendar month.
0:06:35 > 0:06:38So a few issues to sort out, but intrinsically,
0:06:38 > 0:06:41you have got yourself a really nice house here in a lovely area.
0:06:41 > 0:06:44So I'm sure it was a popular lot when it went under the hammer.
0:06:47 > 0:06:50Lot 25. There it is there. Again, a good healthy level of interest
0:06:50 > 0:06:54prior to the sale. Bid me 70,000 for it. 70.
0:06:54 > 0:06:5660 to start me, 60.
0:06:56 > 0:06:5950,000 then. 50.
0:06:59 > 0:07:0050,000 for it.
0:07:01 > 0:07:06There we are. 50,000. At 50,000, lot 25. 50 is bid. Two now.
0:07:06 > 0:07:10At 50,000. Two. 54. 56. 58.
0:07:11 > 0:07:15Well, the auctioneer had to work hard to get that going.
0:07:15 > 0:07:18But whilst he did, things soon picked up.
0:07:18 > 0:07:23We rejoin the bidding at £67,000.
0:07:23 > 0:07:2467.
0:07:24 > 0:07:26500.
0:07:26 > 0:07:2868.
0:07:28 > 0:07:29500.
0:07:29 > 0:07:3169.
0:07:32 > 0:07:3469.
0:07:34 > 0:07:35Ahead of me now.
0:07:35 > 0:07:39£69,000. Are we all done? Are you out this time?
0:07:39 > 0:07:42£69,000.
0:07:44 > 0:07:46Anyone else on this? It is 500 again.
0:07:46 > 0:07:48Why not? 70.
0:07:48 > 0:07:5069.5.
0:07:50 > 0:07:53It turned out there had been a little bit of confusion
0:07:53 > 0:07:57and that bid of £69,500 was retracted.
0:07:57 > 0:08:01So this gentleman's bid of 69,000 was the successful one.
0:08:01 > 0:08:03I'm selling in front of me at 69.
0:08:04 > 0:08:0569,000.
0:08:08 > 0:08:10And that successful bidder was Andy,
0:08:10 > 0:08:14who bought this with his brother and business partner, Matt.
0:08:14 > 0:08:16They run a building company together
0:08:16 > 0:08:18and have been developing properties for a few years.
0:08:18 > 0:08:22So it is time I met up with him to find out more.
0:08:22 > 0:08:25- Andy, good to meet you.- Good to meet you too.- Congratulations.
0:08:25 > 0:08:29- Thanks very much.- Tell me why you wanted to buy this house then.
0:08:29 > 0:08:31Um... I didn't particularly.
0:08:31 > 0:08:34- ANDY LAUGHS - I didn't particularly. No...
0:08:34 > 0:08:36The morning of the auction...
0:08:36 > 0:08:38Decided we wanted to go to the auction, have a look.
0:08:38 > 0:08:41So we did some research, mostly online,
0:08:41 > 0:08:43and then literally spent the morning
0:08:43 > 0:08:46of the auction driving around about three or four possibles.
0:08:46 > 0:08:48- This was one of them. - The morning of the auction?
0:08:48 > 0:08:49Yeah, yeah.
0:08:49 > 0:08:52Driving around three or four properties you might buy
0:08:52 > 0:08:54- the same day in that auction that day?- Yeah.
0:08:54 > 0:08:56I'm not normally that frivolous.
0:08:56 > 0:08:59I normally plan things a little bit better than that.
0:08:59 > 0:09:01I was actually late to the auction as well
0:09:01 > 0:09:03because I decided to come have a look at this property.
0:09:03 > 0:09:06I don't know the area, but I did my research.
0:09:06 > 0:09:08It is all about research, research, research, isn't it?
0:09:08 > 0:09:10That's what it is about.
0:09:10 > 0:09:12- Yeah, but you didn't do any!- Well...
0:09:12 > 0:09:15I did for half an hour.
0:09:15 > 0:09:17I think Andy is trying to do a touche on me.
0:09:17 > 0:09:20Research, research, research, indeed.
0:09:20 > 0:09:22It would appear, though,
0:09:22 > 0:09:25that Andy is a man who takes things in his stride.
0:09:25 > 0:09:28- So is this what you do full-time? - I'm actually an engineer by trade.
0:09:28 > 0:09:34And after university, went to work at a big car company.
0:09:34 > 0:09:36- And then I got leukaemia. - MARTIN GASPS
0:09:36 > 0:09:39So this was like 15 years ago. And it kind of... It was one...
0:09:39 > 0:09:40It was that catalyst, basically,
0:09:40 > 0:09:42for me to decide to do something different.
0:09:42 > 0:09:45I'm in remission now, so everything, you know, is OK.
0:09:45 > 0:09:47But sometimes you have a life-changing event
0:09:47 > 0:09:51and you decide, "OK, well, you know, maybe I shouldn't be working,
0:09:51 > 0:09:54"you know, in a big factory and go out and do my own thing."
0:09:54 > 0:09:56I don't know... I looked at property then.
0:09:56 > 0:10:00I had a couple of...bought a couple of rental houses and liked it.
0:10:00 > 0:10:02And enjoyed it.
0:10:02 > 0:10:03I liked being self-employed.
0:10:03 > 0:10:06So, yeah, it is quite a change of direction.
0:10:06 > 0:10:09Sometimes you need a kick up the backside, you know.
0:10:09 > 0:10:12Obviously, quite a severe one.
0:10:12 > 0:10:15But it makes you a better person, I think, really.
0:10:16 > 0:10:18Wow. Andy's clearly had to fight.
0:10:18 > 0:10:21And I'm so glad to hear he's recovered
0:10:21 > 0:10:25and enjoining a new lease on life and developing property.
0:10:25 > 0:10:28And I'm glad he still has that positive spirit,
0:10:28 > 0:10:29because he needed it again
0:10:29 > 0:10:33when he found out his bank deemed the property unmortgageable.
0:10:36 > 0:10:38Your financing fell through?
0:10:38 > 0:10:40- Yeah, it fell through. - MARTIN GASPS
0:10:40 > 0:10:45So we had to do some work to get..to scrape some money together.
0:10:45 > 0:10:46What was the thing they didn't like,
0:10:46 > 0:10:49the fact that it hasn't got a proper kitchen or what?
0:10:49 > 0:10:52Yeah, I think that the place was pretty tired.
0:10:52 > 0:10:55And I can understand from the surveyor's point of view,
0:10:55 > 0:10:57- you couldn't have let the place the next day.- Right.
0:10:57 > 0:11:00But a few sleepless nights then, I would've thought.
0:11:00 > 0:11:02Yeah, but it is part of the game, isn't it?
0:11:02 > 0:11:05THEY LAUGH
0:11:05 > 0:11:07Well, it is good you are so stoical about it.
0:11:07 > 0:11:10Yeah, well, you've got to have nerves of steel sometimes.
0:11:10 > 0:11:14But, you know, it's a big boy's game, isn't it? If you...
0:11:14 > 0:11:17If you're phased by it, then you shouldn't really be doing it.
0:11:17 > 0:11:20Well, you've got to love his attitude,
0:11:20 > 0:11:23but really, Andy's lack of proper research could have cost him
0:11:23 > 0:11:27a lot of money and, ultimately, the property.
0:11:27 > 0:11:30Still, a small thing like no financing - ha -
0:11:30 > 0:11:32couldn't keep him down.
0:11:32 > 0:11:35So now it is time for the hard work of getting this house back
0:11:35 > 0:11:36to its best.
0:11:39 > 0:11:42So tell me what you are going to do to sort it out.
0:11:42 > 0:11:47Basically, new kitchen, new bathroom, sort the garden out.
0:11:47 > 0:11:49Get that landscaped.
0:11:49 > 0:11:51And then a new bathroom.
0:11:51 > 0:11:54So obviously, this room downstairs, a bit of a strange one,
0:11:54 > 0:11:56- with a loo in it.- Hm.
0:11:56 > 0:12:00- What are the plans for that? - Um, we looked at that.
0:12:00 > 0:12:03It was the downstairs bathroom.
0:12:03 > 0:12:06And I think we decided probably the best thing to do would be to
0:12:06 > 0:12:08change that back into a living room.
0:12:08 > 0:12:10And then underneath the stairs,
0:12:10 > 0:12:13- the plan is to put a downstairs toilet in there.- OK.
0:12:13 > 0:12:16So we don't lose the toilet, but we get another reception room.
0:12:16 > 0:12:19- And then the actual bathroom upstairs?- Yeah.
0:12:19 > 0:12:21The bathroom upstairs, it's quite small,
0:12:21 > 0:12:23but we've worked out we can actually get a bath in there.
0:12:23 > 0:12:27If we get some nice vanity units for the toilet and the basin,
0:12:27 > 0:12:28it should work out.
0:12:28 > 0:12:31But that's why I thought we'd be better to keep, you know,
0:12:31 > 0:12:33keep the toilet downstairs.
0:12:33 > 0:12:37So, obviously, for a family house, it would work better.
0:12:37 > 0:12:41But the downstairs bathroom, it was in a real state. Pipes were...
0:12:41 > 0:12:44You know, pipework in the walls and in and out. I hate that.
0:12:44 > 0:12:46I like nice, clean, smooth lines.
0:12:46 > 0:12:48Is the idea to do it up and sell it on or to rent it out?
0:12:48 > 0:12:50Yeah, do it up and sell it on.
0:12:50 > 0:12:52We're planning to turn it around as quickly as possible.
0:12:52 > 0:12:54- Hopefully, sort of four, six weeks. - Right.
0:12:54 > 0:12:56Probably spending about 15 on it.
0:12:56 > 0:12:58I tend to do other...
0:12:58 > 0:13:01I run the building company, I am hands-on as well,
0:13:01 > 0:13:03so that's on the tools as well.
0:13:03 > 0:13:05It is a family business, really.
0:13:05 > 0:13:08- We've got two of my sons working for me.- Oh, great.
0:13:08 > 0:13:11- One is a painter and decorator, one is a gardener.- Right.
0:13:11 > 0:13:13So it helps keep it in the family, really.
0:13:13 > 0:13:14And you, your skills are what?
0:13:14 > 0:13:17- I'd describe myself as a jobber, I'd say.- OK.
0:13:17 > 0:13:19I can do a bit of everything.
0:13:19 > 0:13:21But, yeah, I put my hands to anything, really.
0:13:21 > 0:13:24- I think the only thing I won't do is plastering.- Right.- Or roofing.
0:13:24 > 0:13:26- Right.- I don't like heights.
0:13:26 > 0:13:28Well, listen, congratulations. Good luck with it.
0:13:28 > 0:13:31- Really nice to meet you. - Great, thanks very much. Cheers.
0:13:33 > 0:13:37Well, listen, you know I have got to tell Andy off, don't you?
0:13:37 > 0:13:39He did break so many rules
0:13:39 > 0:13:41and you can see the kind of problems it can create.
0:13:41 > 0:13:46He has been very chipper about the whole issue about raising finance,
0:13:46 > 0:13:49but that could have been a complete deal breaker.
0:13:49 > 0:13:51Yes, so lessons to be learned.
0:13:51 > 0:13:53However, it does seem like he has got a good place here
0:13:53 > 0:13:57and we wish him all the best sorting it out. How will he get on?
0:13:57 > 0:13:59You can find out later in the show.
0:14:04 > 0:14:07Stoke-on-Trent is made up of six different towns that came
0:14:07 > 0:14:12together as one in 1910 and gained city status in 1924.
0:14:12 > 0:14:15Now, all across these towns are plenty of amenities
0:14:15 > 0:14:17and popular visitor attractions.
0:14:19 > 0:14:22Recent investments at the local university should mean
0:14:22 > 0:14:25a bigger influx of young people looking for student accommodation
0:14:25 > 0:14:27in one of these pockets of Stoke.
0:14:28 > 0:14:31So here in Hanley, which is one of those six towns,
0:14:31 > 0:14:33is the auction lot I'm here to see.
0:14:33 > 0:14:34And it is this.
0:14:34 > 0:14:39It's a two-bed, mid-terrace house with a guide price of £32,000+.
0:14:40 > 0:14:44This house is looking very spick-and-span from the outside.
0:14:44 > 0:14:48It is well-maintained with only a few tiny bits of paint to tidy up.
0:14:48 > 0:14:51This area is currently being regenerated to encourage
0:14:51 > 0:14:52first-time buyers.
0:14:52 > 0:14:54It is really close to the centre of Hanley.
0:14:54 > 0:14:57And Hanley is the commercial hub of Stoke.
0:14:57 > 0:14:59So we are off to a very good start.
0:15:01 > 0:15:03OK, the two things I do look for when I am
0:15:03 > 0:15:06looking round a property are damp and subsidence,
0:15:06 > 0:15:09because they are the two that can cost you a few quid.
0:15:09 > 0:15:12Now, so far, I am liking what I am seeing.
0:15:12 > 0:15:14It is a decent sized front room.
0:15:14 > 0:15:17We've got central heating, double glazed windows.
0:15:17 > 0:15:20And I can see down there, you've got a new fuse box.
0:15:20 > 0:15:23Might have to put some new flooring down, but it is a nice start.
0:15:23 > 0:15:27Into the second reception room, and pretty much the same.
0:15:27 > 0:15:31Same flooring in here. No signs of damp as yet.
0:15:31 > 0:15:33More double glazing, which is great.
0:15:33 > 0:15:36Let's have a look upstairs. I hope it doesn't let me down.
0:15:36 > 0:15:38# Don't let me down
0:15:38 > 0:15:42# Gently if you have to let me down at all... #
0:15:42 > 0:15:44I've got a good feeling.
0:15:44 > 0:15:46These two reception rooms are in decent condition,
0:15:46 > 0:15:50but I think the flower power wallpaper would have to go.
0:15:50 > 0:15:52# Don't let me down. #
0:15:52 > 0:15:55So, upstairs, we have the two bedrooms -
0:15:55 > 0:15:57one on this side and one here.
0:15:57 > 0:16:00Both double bedrooms, both got double glazing as well.
0:16:00 > 0:16:03But I have noticed there's a little bit of electrical work
0:16:03 > 0:16:07that needs to be sorted. Quick fix, though, not a problem.
0:16:07 > 0:16:09The thing I am happy about is there's no signs,
0:16:09 > 0:16:13or should I say no obvious signs, of damp and no cracks as well.
0:16:13 > 0:16:14Perfect.
0:16:14 > 0:16:19# Home and dry-y-y. #
0:16:19 > 0:16:22Actually, not quite home and dry.
0:16:22 > 0:16:24Because while I am seeing two decent sized bedrooms,
0:16:24 > 0:16:27have you spotted what is not here?
0:16:28 > 0:16:29Yep, it's the bathroom.
0:16:29 > 0:16:32It is positioned off the kitchen downstairs, which is
0:16:32 > 0:16:35fairly typical for this style of house in this area.
0:16:38 > 0:16:42So far, so good. Into the kitchen. It is a decent sized space.
0:16:42 > 0:16:46It is a bit dated, so you would want to take it out
0:16:46 > 0:16:48and start again, put something new in here.
0:16:48 > 0:16:51And you've got the bathroom to the back of the property there.
0:16:51 > 0:16:55It all seems to be...OK at the moment.
0:16:55 > 0:16:57That I don't like, here.
0:16:57 > 0:17:00Unfortunately, there is a bit of damp just there.
0:17:00 > 0:17:02Top of the piping.
0:17:02 > 0:17:04We have got a bit of staining around the pipework
0:17:04 > 0:17:07and on the ceiling and a little bit down the walls as well.
0:17:07 > 0:17:09It doesn't seem to be too bad,
0:17:09 > 0:17:12but that is the only problem I can see with this property.
0:17:12 > 0:17:15The rest of it seems to tick a lot of boxes.
0:17:15 > 0:17:17But still, get that checked out.
0:17:21 > 0:17:25That damp could be coming through the roof in the single-storey
0:17:25 > 0:17:27extension that houses the kitchen.
0:17:27 > 0:17:30I'd make it a priority to get that fixed ASAP.
0:17:30 > 0:17:33But even with that extension out the back here, there is
0:17:33 > 0:17:36still a decent sized yard and access to back lanes.
0:17:36 > 0:17:38And I think this is another useful area.
0:17:38 > 0:17:41This little house certainly hasn't let me down.
0:17:45 > 0:17:48With a guide price of £32,000, it's time to find out
0:17:48 > 0:17:51if an agent from the auction house agrees with me.
0:17:51 > 0:17:54First impressions of the property is that it is very typical
0:17:54 > 0:17:56for this age of property in this area.
0:17:56 > 0:18:00It is really mainly cosmetic improvements.
0:18:00 > 0:18:03It's already got central heating, there's already double glazing,
0:18:03 > 0:18:06so it is quite easy to improve this property.
0:18:06 > 0:18:10To resell the property, I would suggest the kitchen
0:18:10 > 0:18:14and bathroom would probably have to be replaced to maximise the value.
0:18:14 > 0:18:17Alternatively, as a rental property, I think it is
0:18:17 > 0:18:20really quite minimal improvements would be required.
0:18:22 > 0:18:23Let's look at the numbers.
0:18:23 > 0:18:26With those two options, first, if you were placed the kitchen
0:18:26 > 0:18:29and bathroom, how much could this resell for?
0:18:30 > 0:18:34If the property was renovated to a high standard throughout,
0:18:34 > 0:18:37I would estimate the property would be in the region of £60,000.
0:18:39 > 0:18:42That's not bad if you get it for the guide price of 32 grand
0:18:42 > 0:18:46and spend 15,000 on it. That could still mean a tidy profit.
0:18:46 > 0:18:48What about rentals?
0:18:48 > 0:18:50I would anticipate a rental income
0:18:50 > 0:18:53in the region of £400 per calendar month.
0:18:54 > 0:18:57If this property goes for anywhere near the guide price, then
0:18:57 > 0:18:59even including a few thousand pounds to do the work,
0:18:59 > 0:19:04you could still make a good yield of at least 10%.
0:19:04 > 0:19:06This seems to me like a pretty straightforward
0:19:06 > 0:19:08two-up-two-down refurbishment.
0:19:08 > 0:19:12You have got the issue of that damp, but I've seen a lot worse.
0:19:12 > 0:19:14Let's see who was after a pretty simple project
0:19:14 > 0:19:16when it went under the hammer.
0:19:19 > 0:19:21Lot 23. So, what shall we say?
0:19:21 > 0:19:2330 to get it going?
0:19:23 > 0:19:25Took you. £30,000 seated.
0:19:25 > 0:19:27At £30,000.
0:19:27 > 0:19:2831 in the aisle.
0:19:28 > 0:19:3132. 33.
0:19:31 > 0:19:3334. 35.
0:19:33 > 0:19:36No. At 35. The bid is in the aisle.
0:19:36 > 0:19:3836, standing in the middle there. At 36.
0:19:38 > 0:19:4037.
0:19:40 > 0:19:4238.
0:19:42 > 0:19:44No? 39 on the phone.
0:19:44 > 0:19:4540?
0:19:45 > 0:19:4740.
0:19:47 > 0:19:4941 anywhere else?
0:19:49 > 0:19:52If not, £40,000 once...
0:19:52 > 0:19:54£40,000 twice....
0:19:54 > 0:19:58Third and final time, £40,000...
0:19:58 > 0:20:0141. 42, sir? A half?
0:20:01 > 0:20:0341.5.
0:20:03 > 0:20:0542, sir?
0:20:05 > 0:20:09Yep, 42. Another half? 42.5.
0:20:09 > 0:20:1243? No. At 42.5 then, in the middle.
0:20:12 > 0:20:1442,500 once...
0:20:14 > 0:20:15Twice...
0:20:15 > 0:20:18Third and last time, 42.5...
0:20:18 > 0:20:20You bought it, sir, well done.
0:20:22 > 0:20:24A successful bid of 42.5 grand,
0:20:24 > 0:20:2910,500 over the guide price, was made by Des from Birmingham.
0:20:31 > 0:20:34Des has one other rental property which he bought ten years ago.
0:20:36 > 0:20:40# Second time is so much better Baby
0:20:40 > 0:20:43# Second time around... #
0:20:44 > 0:20:48I met with Des back at the property to find out his plans.
0:20:48 > 0:20:52- Des, nice to meet you.- Nice to meet you, Dion.- Congratulations, sir.
0:20:52 > 0:20:53Thank you.
0:20:53 > 0:20:56Tell me about the auction, were you happy with what you paid?
0:20:56 > 0:20:58Not really, no.
0:20:58 > 0:21:00- Oh, dear. That is not a great start. - I know.
0:21:00 > 0:21:03I set myself a price of £40,000.
0:21:03 > 0:21:04I didn't want to go a penny over.
0:21:04 > 0:21:07But when I got there on the night, I thought,
0:21:07 > 0:21:10- "Well, just another thousand pound will do."- Oh, no!- Another 500...
0:21:10 > 0:21:14When I got to 42,500, I thought, "No, that's it, I've had enough.
0:21:14 > 0:21:15"No, no more."
0:21:15 > 0:21:19- That was it?- That was it, yeah. - You got lucky.- I got lucky, yeah.
0:21:19 > 0:21:20That was my last and final bid.
0:21:22 > 0:21:24Ah, the auction fever.
0:21:24 > 0:21:27It can be so easy to spend more than what you intend.
0:21:27 > 0:21:30Anyway, I still think this can be a winner
0:21:30 > 0:21:34if he doesn't get carried away with the renovations.
0:21:34 > 0:21:36So what are your plans now?
0:21:36 > 0:21:39Basically, just to paint it.
0:21:39 > 0:21:41Flooring...
0:21:41 > 0:21:44A new kitchen, new bathroom.
0:21:44 > 0:21:45And that's about it, really.
0:21:45 > 0:21:49- But I am setting myself a very tight budget.- OK, give us the budget then.
0:21:49 > 0:21:51About 2,500 to 3,000.
0:21:51 > 0:21:53- OK.- Not much more than that.
0:21:53 > 0:21:56And within that budget, what is going to take the bulk of the money?
0:21:56 > 0:22:00The bulk of the money, the kitchen. It is not that big a kitchen.
0:22:00 > 0:22:03It really needs re-tiling.
0:22:03 > 0:22:06Especially on the floors. And units and that's it.
0:22:06 > 0:22:09And the bathroom at the back, are you going to do the same there?
0:22:09 > 0:22:13Yeah, I'm going to refit the bathroom. I may still keep the bath.
0:22:13 > 0:22:15The bath looks like quite an expensive unit.
0:22:15 > 0:22:17But the toilet and sink may have to go.
0:22:17 > 0:22:20- But I'm going to tile it and paint it and that's it.- Is that you?
0:22:20 > 0:22:23- You said, "I'm going to tile it." - Yes, yes.- Are you really?
0:22:23 > 0:22:26I am going to do the majority of the work myself.
0:22:26 > 0:22:29I've got a friend who is a kitchen fitter who will refit
0:22:29 > 0:22:31the kitchen for me.
0:22:31 > 0:22:33And I've had another person here up
0:22:33 > 0:22:38until last night doing the plumbing and checking out the boiler.
0:22:39 > 0:22:43Well, he's going to need to pull in a few favours with that budget.
0:22:43 > 0:22:47It is a little tight. So is the timescale equally tight?
0:22:47 > 0:22:49How long are you hoping it's going to take to do that?
0:22:49 > 0:22:51Hopefully, six to eight weeks.
0:22:51 > 0:22:55Cos I'm going to be working on weekends.
0:22:55 > 0:22:57So basically, it'll be fitting into my spare time.
0:22:57 > 0:22:59You are looking to use your spare time
0:22:59 > 0:23:00cos you've got a full-time job?
0:23:00 > 0:23:03- I'm a lorry driver, truck driver. - Are you really?
0:23:03 > 0:23:04You do a lot of hours.
0:23:04 > 0:23:06- An awful lot of hours. - HE LAUGHS
0:23:06 > 0:23:09- And the hours that are left in the day...- Uh-huh.
0:23:09 > 0:23:12- No, I won't be working during the day, no.- Oh, OK.
0:23:12 > 0:23:15When I finish during the day, I'm too tired to do anything else.
0:23:15 > 0:23:18- So at the weekends - Saturdays, Sundays - you'll be here?- Yeah.
0:23:18 > 0:23:20- And Monday to Friday you're working.- Working, yeah.
0:23:20 > 0:23:24- You'll be shattered. - Yeah. I've done harder work.
0:23:24 > 0:23:27But after about six weeks, everything should be done and
0:23:27 > 0:23:31I'll be able to rent it out, so I can relax and have a nice holiday.
0:23:31 > 0:23:34# Time to go truckin', baby... #
0:23:36 > 0:23:41So lorry-driving and developing, Des is definitely committed.
0:23:41 > 0:23:44He's hoping he can rope in his partner, Lorraine, for help
0:23:44 > 0:23:45on the decorating front,
0:23:45 > 0:23:49but he's also got some friends that are quite skilful too.
0:23:50 > 0:23:52- A friend of mine called Peter...- Yes.
0:23:52 > 0:23:55..he's a professional all-around maintenance man.
0:23:55 > 0:23:57Apart from doing kitchens, he does everything else.
0:23:57 > 0:24:01- The only thing he won't touch is electrics.- Yeah, good.- Yeah.
0:24:01 > 0:24:03And I am actually a qualified electrician,
0:24:03 > 0:24:04so I can do the electrics myself.
0:24:04 > 0:24:07- Everything is sorted. - There you go, yeah.
0:24:07 > 0:24:11Also, I've got her friend called Selvin, he's a gas fitter,
0:24:11 > 0:24:15so he does all the gas work, plumbing work and stuff like that.
0:24:15 > 0:24:16So, yep.
0:24:16 > 0:24:18- There's your team.- There you go. - Your team is your mates.
0:24:18 > 0:24:19- Yes.- Should be a dawdle.
0:24:19 > 0:24:22# I'm truckin'... #
0:24:22 > 0:24:25I say it's a dawdle, but have I jinxed it?
0:24:25 > 0:24:28There is that one issue of the damp patch.
0:24:28 > 0:24:30Unfortunately, I found that out the hard way.
0:24:30 > 0:24:33I was here yesterday, it was really coming down.
0:24:33 > 0:24:35I happened to walk into the kitchen
0:24:35 > 0:24:37and I thought, "I can hear water dripping."
0:24:37 > 0:24:39Looked up and saw it.
0:24:39 > 0:24:42But hopefully, it is not a major thing.
0:24:42 > 0:24:44I wasn't expecting any major work here.
0:24:44 > 0:24:48Cos when I first saw it, I was quite impressed by the front door
0:24:48 > 0:24:51and the windows and so on. I realised that quite a lot of money
0:24:51 > 0:24:53has already been spent on the property,
0:24:53 > 0:24:56so I am literally giving it a lick of paint, tarting it up
0:24:56 > 0:24:59- and that's it, it's ready to be rented.- Should be a doddle.
0:24:59 > 0:25:02- Yeah, sure. Great.- Des, good luck. - Thank you.- I wish you all the best.
0:25:02 > 0:25:05- Thanks, Dion.- A pleasure.- Bye-bye.
0:25:05 > 0:25:08So between Des, his friends and his partner, Lorraine,
0:25:08 > 0:25:10they seem to have a lot of bases covered.
0:25:10 > 0:25:12But will that damp catch them out?
0:25:12 > 0:25:14You can find out how he gets on later on in the programme.
0:25:16 > 0:25:21Coming up, in South East London, my imagination runs away with me.
0:25:21 > 0:25:23You could pack planting along the back wall.
0:25:23 > 0:25:25It just needs a bit of painting.
0:25:27 > 0:25:30And in Stoke, truck driver Des is on a bit of a learning curve.
0:25:30 > 0:25:32I thought painting was simple,
0:25:32 > 0:25:35but it does take an awful lot of time to have it done properly.
0:25:39 > 0:25:42We are back in Huyton, in the suburbs of Liverpool, to see
0:25:42 > 0:25:45how Andy got on with that three-bedroom semi
0:25:45 > 0:25:48with a guide price of over £70,000.
0:25:48 > 0:25:50He bought the house with his brother, Matt,
0:25:50 > 0:25:52who couldn't make it along to the filming.
0:25:52 > 0:25:55# My beautiful neighbourhood. #
0:25:55 > 0:25:57He had originally trained as an engineer,
0:25:57 > 0:26:00but Andy changed direction completely
0:26:00 > 0:26:03when he got seriously ill with leukaemia.
0:26:03 > 0:26:05It was that catalyst, basically, for me
0:26:05 > 0:26:06to decide to do something different.
0:26:06 > 0:26:09I am in remission now, so everything is OK.
0:26:09 > 0:26:12But sometimes you have a life-changing event and you decide,
0:26:12 > 0:26:15"OK, well, maybe I shouldn't we working, you know,
0:26:15 > 0:26:18"in a big factory, and go out and do my own thing."
0:26:19 > 0:26:22Andy wasted no time setting up a building company
0:26:22 > 0:26:23with his brother, Matt.
0:26:23 > 0:26:27Until last year, that had been taking up all of their time.
0:26:27 > 0:26:30They decided to buy this semi to start their business
0:26:30 > 0:26:33in renovation development, and they picked a house with
0:26:33 > 0:26:37plenty of problems - or do I mean opportunities?
0:26:37 > 0:26:41This is odd. This is what I imagine was originally one of -
0:26:41 > 0:26:44if not the only - bathroom in the property.
0:26:44 > 0:26:45And for starters, downstairs.
0:26:45 > 0:26:49And secondly, it is very dark and it just...
0:26:49 > 0:26:52As layouts go, it is not ideal.
0:26:52 > 0:26:55In fact, there wasn't much that was ideal with this sorry semi.
0:26:55 > 0:26:59As well as the small matter of a completely missing bathroom,
0:26:59 > 0:27:02there was a mostly missing kitchen.
0:27:02 > 0:27:06Andy and his brother paid £69,000 for the house
0:27:06 > 0:27:09and reckoned they could refurbish it for £15,000
0:27:09 > 0:27:12in around four to six weeks.
0:27:12 > 0:27:16Well, we've come back 12 weeks later to see how they got on.
0:27:34 > 0:27:37The back garden is now green and pleasant land.
0:27:40 > 0:27:42And inside, it just gets better and better.
0:27:46 > 0:27:50So, in the kitchen, we had a small fire just by the back door.
0:27:50 > 0:27:52All the walls were blackened and sooty.
0:27:52 > 0:27:55So in the end, we stripped the whole kitchen out,
0:27:55 > 0:27:57re-skimmed everywhere, and a new kitchen.
0:27:57 > 0:28:00Quite pleased with the layout. It is much better than the original.
0:28:02 > 0:28:06The old layout downstairs had something that was almost
0:28:06 > 0:28:07a bathroom.
0:28:07 > 0:28:10But Andy had a better use for that dank little space.
0:28:12 > 0:28:15It was quite dark in there. And it had a frosted window in there.
0:28:15 > 0:28:18So what we've done is we've changed that to a clear window
0:28:18 > 0:28:20and we've also put a skylight in the garage.
0:28:20 > 0:28:24That will just bring a bit more natural daylight into that room.
0:28:24 > 0:28:28What they have now is a very family-friendly study.
0:28:28 > 0:28:32And even more family friendly, right next door, under the stairs,
0:28:32 > 0:28:35they managed to squeeze in a downstairs loo.
0:28:35 > 0:28:39Upstairs now boasts a proper fully-fitted bathroom.
0:28:39 > 0:28:43This was just like a cloak room, really, in the front room up there.
0:28:43 > 0:28:45We've managed to put a bath in, so we've got a full
0:28:45 > 0:28:49three-piece suite in there now with some nice vanity units.
0:28:49 > 0:28:52The rest of the layout up here was pretty sound,
0:28:52 > 0:28:55so the three bedrooms had been re-plastered where required
0:28:55 > 0:28:57and spruced up so they're good to go.
0:29:04 > 0:29:08And how big a job was that transformation of the back garden?
0:29:08 > 0:29:12Outside, the garden was really overgrown.
0:29:12 > 0:29:14It took a few days just to clear everything.
0:29:14 > 0:29:16We rotavatored it all and then re-turfed it.
0:29:16 > 0:29:19And it looks just much more presentable now.
0:29:19 > 0:29:24Originally, Andy set the budget for the refurb at £15,000.
0:29:24 > 0:29:26They thought they could turn the house around
0:29:26 > 0:29:28in four to six weeks.
0:29:29 > 0:29:32The budget came out at about £17,000, which is
0:29:32 > 0:29:34probably about right.
0:29:34 > 0:29:37We did a couple of extra jobs, things like the roof lights,
0:29:37 > 0:29:39changing an extra couple of windows.
0:29:39 > 0:29:41And the toilets, I think,
0:29:41 > 0:29:45was an extra we hadn't sort of originally thought of.
0:29:45 > 0:29:49And really, externally, it probably took a little bit more than
0:29:49 > 0:29:53we thought in the back garden, but quite happy with the figures.
0:29:53 > 0:29:57Adding a downstairs loo is always a good idea if you can squeeze it in.
0:29:57 > 0:29:59And I think that skylight,
0:29:59 > 0:30:03while it is not the most traditional resolution, it does let in light.
0:30:03 > 0:30:07Andy and Matt bought the house for £69,000 and spent
0:30:07 > 0:30:13£17,000 on renovating it, bringing their total spend to £86,000.
0:30:17 > 0:30:21It's time to see what two local estate agents think of their work.
0:30:22 > 0:30:24Two or three things that I really like
0:30:24 > 0:30:27the thought about the room downstairs, the study room,
0:30:27 > 0:30:30they've actually put a VELUX window
0:30:30 > 0:30:32in the garage to have natural light coming in there.
0:30:32 > 0:30:35That's quite thoughtful, cos otherwise, it would be dark
0:30:35 > 0:30:37and dreary. And also the garden was like a forest.
0:30:37 > 0:30:39You couldn't see the back of the fence.
0:30:39 > 0:30:43And now you can see a clear garden with lovely, lush, green grass.
0:30:43 > 0:30:47It is an ideal first-time buyer/young family home.
0:30:47 > 0:30:52And they can grow in it. It has got place to expand the family as well.
0:30:52 > 0:30:57So, what do the estate agents think the property would sell or rent for?
0:30:57 > 0:31:00The property will achieve on the sales market
0:31:00 > 0:31:04£130,000, and on the rental side,
0:31:04 > 0:31:06£675 per calendar month.
0:31:06 > 0:31:09In the current market, from a sales point of view,
0:31:09 > 0:31:12the property should achieve £130,000.
0:31:12 > 0:31:13From a rental point of view,
0:31:13 > 0:31:17it should achieve £650 per calendar month.
0:31:17 > 0:31:20The sales valuations would give Andy
0:31:20 > 0:31:25and Matt a potential profit of £44,000 before taxes and fees.
0:31:25 > 0:31:29But the big question is, will they sell it on or rent it out?
0:31:29 > 0:31:31We originally planned to sell it,
0:31:31 > 0:31:33but because of the increased value, we actually thought,
0:31:33 > 0:31:37"OK, we can keep it, get a better rent than we originally thought
0:31:37 > 0:31:39"and get some money out of it as well."
0:31:39 > 0:31:42We've actually had our tenants come yesterday and we've agreed
0:31:42 > 0:31:46around 675 per calendar month. Really pleased, yeah.
0:31:49 > 0:31:51That would give Andy and Matt
0:31:51 > 0:31:54a healthy yield of over 9% on their investment.
0:31:54 > 0:31:56So what's next for the brothers?
0:31:56 > 0:31:58That was the first one.
0:31:58 > 0:32:00It was a bit nerve-racking because literally,
0:32:00 > 0:32:03I took my coat off, sat down, and this property came up.
0:32:03 > 0:32:05So a bid within 30 seconds of sitting down.
0:32:05 > 0:32:08Within 60 seconds of sitting down, I'd actually bought the property.
0:32:08 > 0:32:10But, yeah, I think it was an interesting
0:32:10 > 0:32:13and enjoyable process, so I probably will buy at auction again.
0:32:20 > 0:32:22This is Charlton in South East London.
0:32:22 > 0:32:26If you've not heard of it before, it is located east of Greenwich
0:32:26 > 0:32:28and west of Woolwich.
0:32:28 > 0:32:31It's an area that hasn't really been touched by the redevelopment in
0:32:31 > 0:32:33and around the Greenwich Docklands,
0:32:33 > 0:32:36so it still retains a London village kind of feel with
0:32:36 > 0:32:40a number of traditional businesses all along the high street.
0:32:41 > 0:32:44Although, there are major changes on the horizon with
0:32:44 > 0:32:47the opening of the Crossrail at nearby Woolwich Arsenal,
0:32:47 > 0:32:50which has caused a huge uplift in prices here.
0:32:52 > 0:32:54Now, I hope you can hear me,
0:32:54 > 0:32:57because there's no getting away from it. This is a really busy road!
0:32:57 > 0:33:01Cars and bikes hurdling past with a dual carriageway
0:33:01 > 0:33:03in both directions.
0:33:03 > 0:33:05Now, that is issue number one.
0:33:05 > 0:33:07But issue number two - parking around here, well, it's not
0:33:07 > 0:33:11easy because there are single yellow lines all the way along here.
0:33:11 > 0:33:14But I'll tell you what, the guide price for this two-bedroom flat
0:33:14 > 0:33:17is £100,000+,
0:33:17 > 0:33:19which sounds very reasonable for London.
0:33:19 > 0:33:24# London calling to the far away towns... #
0:33:24 > 0:33:27Yeah, it is relatively rare to find properties for that
0:33:27 > 0:33:29figure in London these days.
0:33:29 > 0:33:32But it could be factors like the busy location,
0:33:32 > 0:33:35the building looks a little tired and there are some commercial
0:33:35 > 0:33:38properties which just might affect mortgageability.
0:33:38 > 0:33:41So time to head to the lower ground.
0:33:41 > 0:33:44So far, well, the communal hallway is less than impressive -
0:33:44 > 0:33:47dark, dingy, cracks on the wall...
0:33:47 > 0:33:49And is that damp I smell?
0:33:52 > 0:33:55So, once you're down all those stairs, you are in the flat...
0:33:55 > 0:33:58- SHE INHALES DEEPLY - And the first thing that really
0:33:58 > 0:34:01hits me, and I know it is a basement flat and it is so notoriously famous
0:34:01 > 0:34:04for it, is the damp! But you can really smell it.
0:34:04 > 0:34:07It is very pungent indeed, which is a bit of a worry.
0:34:07 > 0:34:10But the kitchen here, fantastic space. It really is.
0:34:10 > 0:34:14And it looks like a kitchen that you could perhaps keep.
0:34:14 > 0:34:15End of the corridor...
0:34:15 > 0:34:19And, on a positive note, it feels really, really spacious.
0:34:19 > 0:34:20You've got a separate loo here.
0:34:20 > 0:34:24You've got a lounge and a bedroom and a bathroom.
0:34:24 > 0:34:26A nice long corridor, so it feels very open.
0:34:26 > 0:34:29Through into bedroom number two, if you like.
0:34:29 > 0:34:33It is easily a double. You know, it doesn't look too bad.
0:34:33 > 0:34:37It's not crying out for decoration, although it wouldn't hurt.
0:34:37 > 0:34:41Something that is concerning me is what I can see out the window.
0:34:41 > 0:34:43I do think you've got a bit of outside space.
0:34:43 > 0:34:47It looks a bit worrying. I'm going to investigate.
0:34:47 > 0:34:50Oh, no, it is a shame that we don't have smell-o-television
0:34:50 > 0:34:53for this flat, because that damp...
0:34:53 > 0:34:55"Ugh, yuck!" is all I can say.
0:34:55 > 0:34:58# Lord, I smell trouble up ahead of me... #
0:35:01 > 0:35:03That can be a costly job to sort out.
0:35:03 > 0:35:07But the expenses aren't all about the inside of the flat, I'm afraid.
0:35:10 > 0:35:13Now, I love a bit of outside space thrown into the deal.
0:35:13 > 0:35:16Always good to have somewhere to come outside and get some fresh air.
0:35:16 > 0:35:18And this is a big space...
0:35:18 > 0:35:20But just look at it.
0:35:21 > 0:35:24Whoever takes this on needs to get a skip.
0:35:24 > 0:35:26Now, I don't know where they are going to put the skip,
0:35:26 > 0:35:28but look at all this!
0:35:28 > 0:35:30A big clean-up needs to take place.
0:35:30 > 0:35:34But it could look absolutely fantastic.
0:35:34 > 0:35:36You could have planting along the back wall.
0:35:36 > 0:35:38It just needs a bit of painting.
0:35:38 > 0:35:41You might even be able to get independent access through
0:35:41 > 0:35:43this door here into the basement flat.
0:35:43 > 0:35:45It could be brilliant!
0:35:45 > 0:35:48At the moment, it's just none of those.
0:35:50 > 0:35:51Absolutely.
0:35:51 > 0:35:52Now, this is a shared back yard,
0:35:52 > 0:35:54but with a little bit of imagination,
0:35:54 > 0:35:56it could transform this property.
0:35:56 > 0:36:00# Just my imagination
0:36:00 > 0:36:05# Running away with me... #
0:36:05 > 0:36:08The flat also comes with a small courtyard at the front
0:36:08 > 0:36:09of the property.
0:36:11 > 0:36:14Yes, it is a bit dark and feels hemmed-in,
0:36:14 > 0:36:17but still, any outside space is London is a bonus.
0:36:17 > 0:36:19And at least this is private.
0:36:19 > 0:36:22A few pot plants could make all the difference.
0:36:22 > 0:36:24But back to the issue of communal areas
0:36:24 > 0:36:27and my biggest concern with this flat.
0:36:27 > 0:36:32Now, I know I always tell you to read the legal pack, as you should,
0:36:32 > 0:36:36but it might not always contain all the information you need.
0:36:36 > 0:36:39And one glaring omission in this instance is
0:36:39 > 0:36:43the cost of the service charge and the possibility of future
0:36:43 > 0:36:46building works taking place in this block.
0:36:46 > 0:36:49I would make it my business to find out two important details.
0:36:49 > 0:36:53First, what are the annual communal charges for the upkeep
0:36:53 > 0:36:54of the building?
0:36:54 > 0:36:56And secondly, given the condition of the building,
0:36:56 > 0:37:00are any works planned and could there be a big bill to follow?
0:37:00 > 0:37:03The good news is, the lease is not a problem.
0:37:03 > 0:37:05There is 88 years left to run on it.
0:37:05 > 0:37:09We invited a local agent along to find out his opinion
0:37:09 > 0:37:10on the property.
0:37:11 > 0:37:13The flat itself is actually well proportioned.
0:37:13 > 0:37:15It is quite a good size - two double bedrooms,
0:37:15 > 0:37:18decent sized living room, good-sized kitchen.
0:37:18 > 0:37:21It is a bit damp at the moment. It has got a lot of damp smell
0:37:21 > 0:37:25in all the rooms. But overall, it has got a good proportion to it.
0:37:25 > 0:37:26I think the fact that you don't have any
0:37:26 > 0:37:29information about the service charge is a big worry
0:37:29 > 0:37:32because the building itself does need a lot of attention.
0:37:32 > 0:37:34So, as I suspected,
0:37:34 > 0:37:37major concerns about that elusive service charge.
0:37:37 > 0:37:41So what about the resale value of this property?
0:37:41 > 0:37:44Once renovated, I think this flat can sell for £220,000.
0:37:44 > 0:37:47And on the rental market?
0:37:47 > 0:37:51This flat, once renovated, could rent for £1,100 per calendar month.
0:37:53 > 0:37:56Yes, the flat is in a busy location and you can't escape
0:37:56 > 0:38:01the smell of damp inside, but it is a really good-sized flat.
0:38:01 > 0:38:04I just hope whoever bought it had their investigation
0:38:04 > 0:38:07skills at the ready to find out about the service charge
0:38:07 > 0:38:10and the future building works here.
0:38:10 > 0:38:12Let's find out if we have a Sherlock Holmes -
0:38:12 > 0:38:16under the hammer - in the making when we went to auction.
0:38:19 > 0:38:22Lot 99 is offered with vacant possession.
0:38:22 > 0:38:24Who wants to get me started on this?
0:38:24 > 0:38:26130 anywhere?
0:38:26 > 0:38:28130 I've got.
0:38:28 > 0:38:29131 anywhere?
0:38:29 > 0:38:33131. 132?
0:38:33 > 0:38:34132. 133.
0:38:34 > 0:38:37134. 135.
0:38:37 > 0:38:39136. 137.
0:38:40 > 0:38:43Well, so much for that 100 grand guide price
0:38:43 > 0:38:47because we rejoin the bidding at 147,000.
0:38:47 > 0:38:49147.
0:38:49 > 0:38:50148.
0:38:50 > 0:38:52150, knows the value. 151.
0:38:54 > 0:38:56It is with you, sir, the bid is £150,000.
0:38:56 > 0:39:00It is against the gentleman here, on my left. 150 for the first.
0:39:00 > 0:39:02150 for the second.
0:39:02 > 0:39:05150 for the third and final time. Are we all done?
0:39:07 > 0:39:08Sold, 150. Well bought.
0:39:12 > 0:39:17And with the successful bid of £150,000 was Sat.
0:39:17 > 0:39:19Sat is no stranger to the auction house,
0:39:19 > 0:39:23having become a property developer in 2010.
0:39:23 > 0:39:26He always buys at auction for himself as well as investors.
0:39:26 > 0:39:28So I met him back at the flat to hear what
0:39:28 > 0:39:30he had planned for the place.
0:39:30 > 0:39:35# Oh, now tell me, where can you party, child, all night long?
0:39:35 > 0:39:37# In the basement
0:39:37 > 0:39:38# Down in the basement... #
0:39:38 > 0:39:41- Sat, congratulations. - Thank you very much.- Well done.
0:39:41 > 0:39:44- You got the property you wanted at auction.- Mm-hm.
0:39:44 > 0:39:49- You are not an auction virgin, are you?- No. I've done it since 2010.
0:39:49 > 0:39:51I finished university in 2009.
0:39:51 > 0:39:56It wasn't the best time to graduate in terms of the economy,
0:39:56 > 0:39:59so, yeah, my father was in property, my grandfather was in it.
0:39:59 > 0:40:01I bought my first one, my grandfather helped me
0:40:01 > 0:40:04out a little bit, and went from there, really.
0:40:04 > 0:40:07Well, it sounds like Sat knows what he is doing here.
0:40:07 > 0:40:09He currently has ten properties in his portfolio
0:40:09 > 0:40:13and often works with investors on properties for resale.
0:40:13 > 0:40:15Now, I wonder why he chose this one.
0:40:15 > 0:40:17This area is quite familiar to me.
0:40:17 > 0:40:21I wasn't born too far away, in Blackheath.
0:40:21 > 0:40:24- And my grandma used to work in the Post Office in Charlton.- Did she?
0:40:24 > 0:40:25Yeah, she did. Yeah.
0:40:25 > 0:40:28So quite familiar with the area and, you know,
0:40:28 > 0:40:31I grew up around here, so it means a lot to me.
0:40:31 > 0:40:33And it has changed a lot as well.
0:40:33 > 0:40:35So, yeah, it's been a bit of a surprise
0:40:35 > 0:40:37how it's turned out, really.
0:40:38 > 0:40:41How lovely for Sat to be investing in an area with such fond memories
0:40:41 > 0:40:44for him. And I'm sure it has changed a lot
0:40:44 > 0:40:46since his grandmother worked in the Post Office.
0:40:46 > 0:40:49But I am betting this is not a purchase based
0:40:49 > 0:40:52on sentiment for the good ole days.
0:40:52 > 0:40:57# Glory days, glory days. #
0:40:57 > 0:40:59So, how much research did you do?
0:40:59 > 0:41:02I did the usual amount - looked through the legal pack.
0:41:02 > 0:41:04I did view it, just about.
0:41:04 > 0:41:07The gentleman was just leaving the property,
0:41:07 > 0:41:10he was showing it round, and he said, "You have 30 seconds."
0:41:10 > 0:41:13So I literally was in and out of here in 30 seconds.
0:41:13 > 0:41:15- Was he just locking up? - Yeah, he was just locking up.
0:41:15 > 0:41:17My car was on the yellow line, I was like, "Uh..."
0:41:17 > 0:41:20But quickly ran out, got it done. So I did see it, just about.
0:41:20 > 0:41:22As you entered the property for the first time,
0:41:22 > 0:41:24did you get that...smell?
0:41:24 > 0:41:28It the damp smell that hits you as soon as you walk through the door.
0:41:28 > 0:41:30- Yeah, sure.- Now, it is a basement flat.
0:41:30 > 0:41:31It has always been a big problem,
0:41:31 > 0:41:33always will be a problem with property.
0:41:33 > 0:41:35Are you worried about it?
0:41:35 > 0:41:37I'm not too worried about it.
0:41:37 > 0:41:38I mean, sometimes it is hard to
0:41:38 > 0:41:41distinguish between condensation and damp, but I'll get
0:41:41 > 0:41:45a specialist in to, you know, have a look and give their opinion on it.
0:41:45 > 0:41:47But, yeah, like you said, it seems to be a current trend with
0:41:47 > 0:41:50basement flats, so that will be my priority.
0:41:51 > 0:41:53Mm, very wise.
0:41:53 > 0:41:57Getting that damp fixed would be my number one priority as well.
0:41:59 > 0:42:02Now, I know in the legal pack, there wasn't any information
0:42:02 > 0:42:06on the service charge and any future building works taking place.
0:42:06 > 0:42:09Are you concerned about that? And what do you know?
0:42:09 > 0:42:12The heart is secretly racing on that one.
0:42:12 > 0:42:15I think when we hear back from the freeholder, I think
0:42:15 > 0:42:18my heart will definitely be
0:42:18 > 0:42:21beating out of my chest because I've been hit with it before.
0:42:21 > 0:42:24- So I am very concerned about it. - What happened in the past?
0:42:24 > 0:42:27In the past, I got a nice big bill
0:42:27 > 0:42:29for £25,000
0:42:29 > 0:42:31on a flat.
0:42:31 > 0:42:35- So, yeah, it wasn't...- So you haven't learned by your mistakes!
0:42:35 > 0:42:38No, I haven't, but I have factored it in, in the price,
0:42:38 > 0:42:41so I said, "That's the worst I've ever dealt with,
0:42:41 > 0:42:43"so hopefully it won't go past that figure."
0:42:43 > 0:42:47Anything less than £25,000 is a bonus for Sat.
0:42:47 > 0:42:49That's good to know.
0:42:49 > 0:42:53So let's find out what renovations he's got planned for the place.
0:42:53 > 0:42:56It doesn't need anything too dramatic done,
0:42:56 > 0:42:58but I think I would still give it a repaint,
0:42:58 > 0:43:03put new carpets in and just making it look prim and proper, really.
0:43:03 > 0:43:08As well as the renovations inside, Sat plans to tidy up
0:43:08 > 0:43:11the front courtyard and the communal gardens at the back,
0:43:11 > 0:43:13and all within six to eight weeks.
0:43:13 > 0:43:15So, let's talk budget.
0:43:15 > 0:43:18I think my budget is probably going to be about £8,000.
0:43:18 > 0:43:20That is relatively low.
0:43:20 > 0:43:21Yeah, it is relatively low,
0:43:21 > 0:43:25but I think the amount of work that is needed, I'm pretty comfortable
0:43:25 > 0:43:28in my past experience that it can be achieved in that price.
0:43:28 > 0:43:30Well, I'm really excited to see the outcome.
0:43:30 > 0:43:34- Well done, Sat, congratulations. - Likewise. Thank you.- Thank you.
0:43:34 > 0:43:36On face value, this seems like a straightforward
0:43:36 > 0:43:38project for experienced developer Sat,
0:43:38 > 0:43:41but even he admits he is a bit worried about the lack
0:43:41 > 0:43:44of information with the service charge and the building works.
0:43:44 > 0:43:48I just hope he gets to the bottom of those extra costs
0:43:48 > 0:43:50and they don't prove too expensive for him.
0:43:50 > 0:43:54Join me later in the programme and you can find out how he gets on.
0:43:56 > 0:43:58So, we've seen how our first buyer got on,
0:43:58 > 0:44:01- but what about the others? - Did everything go to plan?
0:44:01 > 0:44:02Let's find out.
0:44:05 > 0:44:09We are back in Stoke-on-Trent in the area of Hanley to see what
0:44:09 > 0:44:14happened to that two-bed mid-terrace which was guided at £32,000.
0:44:15 > 0:44:17The house was in pretty good condition.
0:44:17 > 0:44:19And the more I saw, the more I liked it.
0:44:20 > 0:44:22No signs of damp as yet.
0:44:22 > 0:44:24More double glazing, which is great.
0:44:24 > 0:44:27Let's have a look upstairs. I hope it doesn't let me down.
0:44:31 > 0:44:34The two bedrooms were in need of redecoration
0:44:34 > 0:44:36and a little bit of re-wiring.
0:44:36 > 0:44:39But it was downstairs in the kitchen where I started to have my worries.
0:44:40 > 0:44:42That I don't like, here.
0:44:42 > 0:44:46Unfortunately, there is a bit of damp just there.
0:44:46 > 0:44:49Top of the piping, you have got a bit of staining around
0:44:49 > 0:44:53the pipework and on the ceiling and a little bit down the walls as well.
0:44:53 > 0:44:54It doesn't seem to be too bad.
0:44:54 > 0:44:57That is the only problem I can see with this property.
0:44:57 > 0:45:00Putting a patch of damp to one side, I thought
0:45:00 > 0:45:02this would be a simple job for someone.
0:45:02 > 0:45:05And that someone was Des, a full-time lorry driver
0:45:05 > 0:45:07and second-time-around developer.
0:45:07 > 0:45:10And when Des told me his work schedule, I was gobsmacked.
0:45:12 > 0:45:15- So at the weekends - Saturday, Sunday - you'll be here?- Yeah.
0:45:15 > 0:45:17- And Monday to Friday, you're working.- Working, yeah.
0:45:17 > 0:45:20- You'll be shattered. - Yeah. I've done harder work.
0:45:20 > 0:45:24OK, so Des was clearly not afraid of grafting.
0:45:24 > 0:45:26But remember, this house cost him
0:45:26 > 0:45:29more than he wanted to spend in the first place.
0:45:29 > 0:45:33He paid £42,500 for this house and had a modest budget
0:45:33 > 0:45:36of £2,500 to £3,000 for the renovations.
0:45:36 > 0:45:40He thought he could turn this house around in six to eight weeks.
0:45:40 > 0:45:42We've come back ten weeks later to see
0:45:42 > 0:45:46if the part-time developer has a full-time hit on his hands.
0:45:46 > 0:45:49# It ain't what you do It's the way that you do it
0:45:49 > 0:45:52# It ain't what you do It's the way that you do it
0:45:52 > 0:45:54# It ain't what you do It's the way that you do it
0:45:54 > 0:45:56# That's what gets results. #
0:46:00 > 0:46:03Des has transformed this dark front room,
0:46:03 > 0:46:05making it bright and welcoming.
0:46:05 > 0:46:08The old vinyl floor tiles are a thing of the past
0:46:08 > 0:46:10and have been replaced throughout the ground floor with
0:46:10 > 0:46:14contemporary wooden flooring that is hard-wearing and practical.
0:46:14 > 0:46:17He has smoothed, skimmed and painted his way throughout
0:46:17 > 0:46:19the whole of the house, just like he said he would.
0:46:20 > 0:46:23Once I'd painted, it didn't come out 100%.
0:46:23 > 0:46:26So, up till last night, I had to repaint it again.
0:46:26 > 0:46:29But it's...it's drying out slowly.
0:46:29 > 0:46:31So it's getting there.
0:46:31 > 0:46:33I like his attention to detail here.
0:46:33 > 0:46:37He is not willing to accept a sloppy job, especially if it is his own.
0:46:37 > 0:46:39Also, on the ground floor,
0:46:39 > 0:46:42there was that kitchen with that worrying damp patch.
0:46:42 > 0:46:45I had a slight leak in the roof in the kitchen,
0:46:45 > 0:46:46which was above the boiler.
0:46:46 > 0:46:50There was a problem with some loose tiles on the extension.
0:46:50 > 0:46:53I had to get a roofer to do that. And that was it, quite simple.
0:46:53 > 0:46:56# It ain't what you do It's the way that you do it
0:46:56 > 0:46:59# And that's what gets results. #
0:46:59 > 0:47:02It's simple if you get the right people to do the work,
0:47:02 > 0:47:05but with a small budget of just 2.5 to three grand,
0:47:05 > 0:47:06Des had to keep the cost down,
0:47:06 > 0:47:09only replacing what was absolutely necessary.
0:47:11 > 0:47:13After giving the old kitchen a good clean, I decided, no,
0:47:13 > 0:47:16it needed replacing, so rip it all out.
0:47:16 > 0:47:18Then I decided to start on the floor.
0:47:18 > 0:47:22The floor was a bit of a major problem cos it had vinyl tiles.
0:47:22 > 0:47:25The vinyl tiles needed taking up with a pneumatic drill.
0:47:25 > 0:47:26That is how hard down they were.
0:47:26 > 0:47:31# Swing my hammer strong at night... #
0:47:34 > 0:47:36The bathroom was a little bit easier.
0:47:36 > 0:47:41The units inside it were quite good. It needed just a good clean.
0:47:41 > 0:47:44I replaced the taps. I fitted a shower as well.
0:47:44 > 0:47:46And new tiling and that was it.
0:47:46 > 0:47:50# I'm just a hard workin' driver man. #
0:47:51 > 0:47:53I'm really impressed how Des has reused what
0:47:53 > 0:47:56he could to keep the costs down but keep the quality up.
0:47:56 > 0:48:00He's been working hard, but has he been working smart?
0:48:00 > 0:48:03Well, the biggest challenge, I think, is I should have
0:48:03 > 0:48:07subcontracted out most of the work, considering the painting.
0:48:07 > 0:48:08I thought painting was simple,
0:48:08 > 0:48:12but it does take an awful lot of time to have it done properly.
0:48:12 > 0:48:14So that is what I should have subcontracted out.
0:48:14 > 0:48:18Well, there is always something to learn on every development, Des.
0:48:18 > 0:48:19# Second time. #
0:48:19 > 0:48:22And this is only your second property refurbishment.
0:48:22 > 0:48:26Upstairs, the two bedrooms have been given a fresh look
0:48:26 > 0:48:28with new carpets and plain walls.
0:48:28 > 0:48:31Des spent a little longer than his original eight weeks,
0:48:31 > 0:48:33taking ten in total.
0:48:33 > 0:48:36So how did his three grand budget work out?
0:48:36 > 0:48:40I ended up spending 3,200 in total.
0:48:40 > 0:48:43The main reason for going slightly over budget was getting
0:48:43 > 0:48:45the roof repaired and the boiler repaired,
0:48:45 > 0:48:47but these were jobs which I just had to do.
0:48:50 > 0:48:54Des bought the house for 42.5 grand and spent 3,200
0:48:54 > 0:48:59on refurbishment, bringing his total investment to £45,700.
0:49:02 > 0:49:04It's time to find out what two local property agents
0:49:04 > 0:49:06think of the house.
0:49:06 > 0:49:08This is my first time inside the property
0:49:08 > 0:49:11I am particularly impressed with the level of finish, especially
0:49:11 > 0:49:13in the kitchen and the bathroom.
0:49:13 > 0:49:17The main selling points for this property is that it is close
0:49:17 > 0:49:21to the city centre and, of course, the road links that that provides.
0:49:21 > 0:49:24There is not anything different to the property, it is
0:49:24 > 0:49:28just a basic refurbishment, which is all that is needed around the area.
0:49:28 > 0:49:30The area is on the up as well,
0:49:30 > 0:49:32so hopefully it'll get better over time.
0:49:32 > 0:49:36So, what do the agents think the property could sell or rent for?
0:49:38 > 0:49:40If this property was going to the market for sale,
0:49:40 > 0:49:43I'd expected to achieve around £50,000.
0:49:43 > 0:49:45And if it was going to go onto the rental market,
0:49:45 > 0:49:49I would expect it to achieve around £375 per calendar month.
0:49:49 > 0:49:51For the sale market, I think
0:49:51 > 0:49:54this property will achieve a figure in the region of £55,000.
0:49:54 > 0:49:59For the rental market, a figure around £395 per calendar month.
0:50:01 > 0:50:04Although Des was planning on renting the house out,
0:50:04 > 0:50:07those sales figures would give him a profit of in between just
0:50:07 > 0:50:11under £5,000 and £10,000 before taxes and expenses.
0:50:11 > 0:50:14But closer to his heart are those rental yields,
0:50:14 > 0:50:18which would give Des a very healthy return of between 9% and 10%.
0:50:21 > 0:50:24The rental figures I've had quoted have been very similar,
0:50:24 > 0:50:25by two different agents,
0:50:25 > 0:50:29and I'm happier with the second figure rather than the first,
0:50:29 > 0:50:30obviously.
0:50:32 > 0:50:34This is Des' second development,
0:50:34 > 0:50:37the last one being ten years ago. So what is next?
0:50:37 > 0:50:39At the moment, I'm not too sure.
0:50:39 > 0:50:42I'm going to lease this one out first of all.
0:50:42 > 0:50:45And then from there, I'll calculate some figures
0:50:45 > 0:50:46and consider doing this again.
0:50:46 > 0:50:49But at the moment, I would like a little bit of a holiday.
0:50:52 > 0:50:54# London boy! #
0:50:58 > 0:51:01Well, it is time to go back to Charlton, in London,
0:51:01 > 0:51:05and a basement flat I saw there guided at what seemed like,
0:51:05 > 0:51:08in London terms, a really reasonable 100,000.
0:51:09 > 0:51:12It, however, had a few extras it could well do without.
0:51:14 > 0:51:17First thing that really hits me, and I know it is a basement flat
0:51:17 > 0:51:20and it is so notoriously famous for it, is the damp!
0:51:20 > 0:51:22But you can really smell it.
0:51:22 > 0:51:25It is very pungent indeed, which is a bit of a worry.
0:51:25 > 0:51:28# Lord, I smell trouble up ahead of me. #
0:51:28 > 0:51:32But there were upsides to the less-than-fragrant basement.
0:51:32 > 0:51:34It was a really spacious flat.
0:51:34 > 0:51:37There was a super kitchen, which really needed very little work,
0:51:37 > 0:51:40and a decent bathroom with a shower and a bath in there,
0:51:40 > 0:51:42plus a separate loo.
0:51:42 > 0:51:46There was not one but two decent sized, bright bedrooms.
0:51:46 > 0:51:49The living room is at the front of the house,
0:51:49 > 0:51:52with not much of a view, but again, plenty of light.
0:51:52 > 0:51:56And things got even better around the back. Well, sort of.
0:51:56 > 0:51:58This is a big space.
0:51:58 > 0:51:59But just look at it.
0:52:00 > 0:52:03Whoever takes this on needs to get a skip.
0:52:03 > 0:52:06Now, I don't know where they're going to put the skip,
0:52:06 > 0:52:07but look at all this!
0:52:07 > 0:52:10A big clean-up needs to take place.
0:52:10 > 0:52:13But it could look absolutely fantastic.
0:52:14 > 0:52:16The flat was bought by Sat,
0:52:16 > 0:52:19a local lad who comes from a property developing family.
0:52:19 > 0:52:21He thought he sniffed out a bargain here.
0:52:21 > 0:52:24And with over ten properties under his belt, that eau de damp
0:52:24 > 0:52:28that permeated the flat, well, it held no fears for him.
0:52:30 > 0:52:32I'm not too worried about it.
0:52:32 > 0:52:34I mean, sometimes it is hard to distinguish
0:52:34 > 0:52:35between condensation and damp.
0:52:35 > 0:52:38But I'll get a specialist in to, you know, have a look
0:52:38 > 0:52:39and give their opinion on it.
0:52:39 > 0:52:42But, yeah, like you said, it seems to be a current trend with
0:52:42 > 0:52:45basement flats, so that will be my priority.
0:52:45 > 0:52:49The legal pack didn't state whether there was a service charge or
0:52:49 > 0:52:52if there was any future building work planned on the property,
0:52:52 > 0:52:55so this had Sat feeling a little bit nervous.
0:52:55 > 0:52:58The heart is secretly racing on that one because I've been hit
0:52:58 > 0:53:01with it before, so I am very concerned about it.
0:53:01 > 0:53:06In the past, I got a nice big bill for £25,000
0:53:06 > 0:53:08on a flat. So, yeah.
0:53:08 > 0:53:11So you haven't learned by your mistakes!
0:53:11 > 0:53:15No, I haven't, but I have factored it in, in the price.
0:53:15 > 0:53:17Oh, well, that's all right, then. Maybe!
0:53:17 > 0:53:22Sat bought the flat for 150,000 and had a budget of £8,000
0:53:22 > 0:53:24and six to eight weeks.
0:53:24 > 0:53:29Now, we have come back 11 weeks later to find out how he got on.
0:53:34 > 0:53:37# I'm a wonderful thing, baby
0:53:40 > 0:53:42# Wonderful
0:53:44 > 0:53:47# I'm a wonderful thing, baby... #
0:53:47 > 0:53:49Well, you've just got to take my word for it,
0:53:49 > 0:53:51this flat now smells as good as it looks.
0:53:51 > 0:53:55Sat has neither scrimped nor scraped to turn this smelly, old
0:53:55 > 0:53:57basement into a clean, fresh haven.
0:53:57 > 0:54:00He's done all the work that was essential and then he has had
0:54:00 > 0:54:05a whole lot of fun with making the kitchen and bathroom just wonderful.
0:54:05 > 0:54:07# Wonderful! #
0:54:07 > 0:54:10Of course, the finish on the property.
0:54:10 > 0:54:12We decided to go for a quite high spec finish.
0:54:12 > 0:54:15Especially with the area, up-and-coming with the Crossrail.
0:54:15 > 0:54:18I think we are trying to get a little bit ahead of the times
0:54:18 > 0:54:22by just modernising it, because we feel that the area is going to be
0:54:22 > 0:54:25quite cosmopolitan at a later stage.
0:54:25 > 0:54:28Some of the tricks of the trade there from Sat.
0:54:28 > 0:54:31He has prepared the flat for the new opportunities that better
0:54:31 > 0:54:32transport will bring.
0:54:34 > 0:54:35But I want to know
0:54:35 > 0:54:39if it was the sweet smell of success with the smelly, old damp problem.
0:54:40 > 0:54:44There had to be something that dampened my mood, pardon the pun.
0:54:44 > 0:54:47The damp was a bit of an issue, so I did get someone to check it out.
0:54:47 > 0:54:49They said it wasn't that bad.
0:54:49 > 0:54:52And then once I did the whole property in the flat, I did notice
0:54:52 > 0:54:55a few areas, so I thought, "Hang on, let me call a specialist in."
0:54:55 > 0:54:59They then said there is damp, so I had to redo it again afterwards.
0:54:59 > 0:55:01So I think that is a lesson learned.
0:55:02 > 0:55:06And that lesson is that rising damp needs a specialist to fix it.
0:55:06 > 0:55:10But Sat was a lot more fortunate with the service charges and
0:55:10 > 0:55:14possible future building works which had caused him sleepless nights.
0:55:14 > 0:55:16There was no future building works planned
0:55:16 > 0:55:21and the service charges are a very reasonable 500 quid a year,
0:55:21 > 0:55:22a saving in the short term.
0:55:22 > 0:55:25But there is no doubt that money spent on renovating
0:55:25 > 0:55:28the building would in turn increase the value of the flat.
0:55:28 > 0:55:32So has the flat come up smelling of roses for Sat?
0:55:32 > 0:55:33I'm really happy with it.
0:55:33 > 0:55:36From start to finish, before and after, there is a really,
0:55:36 > 0:55:38really big difference.
0:55:38 > 0:55:41And considering the building, I think this really,
0:55:41 > 0:55:44really stands out as a really, really good modern flat.
0:55:44 > 0:55:47So I'm really happy we've put a bit of CPR on it
0:55:47 > 0:55:48and brought it back to life.
0:55:48 > 0:55:51# I can feel the love Can you feel it too?
0:55:51 > 0:55:54# I can feel it, ah-ah... #
0:55:54 > 0:55:57Outside, Sat wasn't able to do much about the whole building,
0:55:57 > 0:56:00but he made the view from the living room so much better.
0:56:00 > 0:56:03He got his team to clear out the shed, rear yard,
0:56:03 > 0:56:06so it no longer looked like a rubbish tip.
0:56:06 > 0:56:11Sat bought the flat for 150,000 and spent £8,800 on
0:56:11 > 0:56:17the renovations, bringing his total spend to just under 159,000.
0:56:17 > 0:56:19It's time to find out
0:56:19 > 0:56:23if our two property experts think Sat has a nose for a bargain.
0:56:23 > 0:56:25I think the property has been done
0:56:25 > 0:56:27nicely to a nice, modern standard.
0:56:27 > 0:56:29It's light, it's bright.
0:56:29 > 0:56:32And despite the fact that it is a basement,
0:56:32 > 0:56:33it feels airy.
0:56:33 > 0:56:36Everything is done, so it is just a walk-into property.
0:56:36 > 0:56:39The property itself has good rooms, good-sized, spacious rooms,
0:56:39 > 0:56:42a nice kitchen, nice bathroom and a separate toilet,
0:56:42 > 0:56:46so it has got a lot of selling points to the property.
0:56:46 > 0:56:47So, what sales and rental values
0:56:47 > 0:56:51do the agents think the property could achieve?
0:56:52 > 0:56:55On the resale market,
0:56:55 > 0:56:59we would sell this property at £270,000.
0:56:59 > 0:57:01And on the rental market,
0:57:01 > 0:57:06we would rent it at £1,250 per calendar month.
0:57:06 > 0:57:10I think this property is worth £270,000 on the resale market
0:57:10 > 0:57:13and £1,200 per calendar month on the rental market.
0:57:13 > 0:57:15Wow! Based on these figures,
0:57:15 > 0:57:19that means Sat could make a potential profit of just
0:57:19 > 0:57:24over £111,000 before taxes and expenses if he sold the flat
0:57:24 > 0:57:28and around a 9% yield if he rented it out.
0:57:28 > 0:57:30Well, with them figures,
0:57:30 > 0:57:34I think I will be very happy to sell at the moment.
0:57:34 > 0:57:37And that was our intention from the beginning.
0:57:37 > 0:57:41The rental idea was only just as a precaution
0:57:41 > 0:57:43if we couldn't sell the flat.
0:57:43 > 0:57:46With this South London property a resounding success,
0:57:46 > 0:57:49is Sat tempted to head off to pastures new?
0:57:49 > 0:57:53I really enjoy South East London. It is...
0:57:53 > 0:57:55Like I said, it is an up-and-coming area
0:57:55 > 0:57:59and I was born not too far away from here,
0:57:59 > 0:58:00so my roots are here and, yeah,
0:58:00 > 0:58:04it has always been a lucky area for me. So, yeah, if a deal
0:58:04 > 0:58:07comes in this area, I'll be more than happy to take it on board.
0:58:10 > 0:58:13We'll be back next time with more auction properties
0:58:13 > 0:58:14and the stories behind them.
0:58:14 > 0:58:16Yeah, we'll see you then for more Homes Under The Hammer.
0:58:16 > 0:58:18- Goodbye.- Goodbye.- Goodbye.