0:00:02 > 0:00:04Hello. The auction is a great place to start, whether it's
0:00:04 > 0:00:07an investment opportunity or to buy your forever home.
0:00:07 > 0:00:10Yeah, there's something for everyone - different types of properties,
0:00:10 > 0:00:12all kinds of price tags, all over the country.
0:00:12 > 0:00:14But don't forget, stick to your budget,
0:00:14 > 0:00:18make sure you know what you're buying and you've researched it
0:00:18 > 0:00:21and, you never know, you could be laughing all the way to the bank
0:00:21 > 0:00:23when you buy your next home under the hammer.
0:00:48 > 0:00:51Now, we're always saying don't let your head rule your heart,
0:00:51 > 0:00:53but we know how hard that can be.
0:00:53 > 0:00:55Yeah, but sometimes, and only sometimes,
0:00:55 > 0:00:59- your heart could be right.- So, was it head or heart for today's buyers?
0:00:59 > 0:01:01Well, here's what they bought.
0:01:03 > 0:01:08In Plymouth, Devon, I'm reeling against the '60s decor.
0:01:08 > 0:01:11This stuff! I mean, was that ever a fashion?!
0:01:13 > 0:01:15And in Tottenham, North London,
0:01:15 > 0:01:18this wouldn't meet current fashion trends.
0:01:18 > 0:01:22A little bit shabby around the edges, and that's not shabby chic.
0:01:23 > 0:01:25While in Newcastle-under-Lyme,
0:01:25 > 0:01:28I found a fashion statement that I hope never returns.
0:01:28 > 0:01:32A nice sort of textured plaster, on top of wallpaper.
0:01:34 > 0:01:36All these properties were bought at auction.
0:01:36 > 0:01:39We'll find out who bought them and how much they paid for them,
0:01:39 > 0:01:41when these homes went under the hammer.
0:01:41 > 0:01:42Yours.
0:01:46 > 0:01:49Plymouth, in Devon, has a vast maritime history
0:01:49 > 0:01:51and is home to Plymouth Sound,
0:01:51 > 0:01:55one of the most perfect natural harbours in the world.
0:01:55 > 0:01:59It was here in Plymouth that Sir Francis Drake enjoyed
0:01:59 > 0:02:01a game of lawn bowls before setting off to
0:02:01 > 0:02:05take on the Spanish Armada, way back in 1588.
0:02:06 > 0:02:12Well, not far from Plymouth's famous harbour is Stoke village.
0:02:12 > 0:02:14A familiar name, but maybe not a familiar place,
0:02:14 > 0:02:18but this is where 19th-century naval officers
0:02:18 > 0:02:22built their villas. But it's not one of those I'm here to see.
0:02:22 > 0:02:24It's actually a Victorian terrace.
0:02:24 > 0:02:28Three bedrooms, guide price £100,000-plus.
0:02:28 > 0:02:31Let's see, see, see what it's like inside.
0:02:36 > 0:02:38I love these houses, actually.
0:02:38 > 0:02:43Very grand position up those stairs. Really nicely located.
0:02:43 > 0:02:45And traditionally quite grand houses.
0:02:45 > 0:02:49I mean, this was, in its day, a very rich city.
0:02:49 > 0:02:52And the people who worked here, some of them made lots of money
0:02:52 > 0:02:57from the sea or whatever and built houses to suit, so they are grand.
0:02:57 > 0:02:59This is no exception. In fact, one of the things
0:02:59 > 0:03:02I'm noticing straightaway is this is a house that, thankfully,
0:03:02 > 0:03:06hasn't had some of those original features ripped out.
0:03:06 > 0:03:07I mean, look at that door.
0:03:07 > 0:03:11Pretty boring at the moment, but you know what, that is a fashion
0:03:11 > 0:03:15that was done in the 1960s to cover up the beautiful doors underneath.
0:03:15 > 0:03:18It's joyous, actually, cos all you need to do is take off
0:03:18 > 0:03:21this bit of hardboard that's on the front there, and behind there
0:03:21 > 0:03:26will be a beautiful pitch-pine original Victorian doorway.
0:03:26 > 0:03:28And... A door, rather!
0:03:28 > 0:03:31And likewise, the floors, I reckon underneath these carpets,
0:03:31 > 0:03:35if you took them out, you'd find those beautiful thick pine
0:03:35 > 0:03:37floorboards that you can strip back
0:03:37 > 0:03:40and just dramatically affect the way this house looks,
0:03:40 > 0:03:43because, intrinsically, it's a great property straightaway.
0:03:43 > 0:03:45You've got the bay window there.
0:03:45 > 0:03:47A few signs of damp, that's not ideal, um,
0:03:47 > 0:03:52but a really nice-sized space and then, rear sitting room here.
0:03:52 > 0:03:55Um, again, it's just got that feeling to it.
0:03:55 > 0:03:57It's immediately very appealing.
0:04:03 > 0:04:05Well, sadly, things start to go a bit wrong
0:04:05 > 0:04:09the further you sort of disappear into the property,
0:04:09 > 0:04:13because there's a corridor leading down to this area here,
0:04:13 > 0:04:17which is like, I guess, a traditional rear sitting room.
0:04:17 > 0:04:21That's sort of OK, if this was where the kitchen was, but it's not.
0:04:21 > 0:04:24You have to go through this extra door, up a step,
0:04:24 > 0:04:29to find the kitchen and, as you can see, it's absolutely tiny.
0:04:29 > 0:04:32For the size of house, this just doesn't work.
0:04:32 > 0:04:33I mean, you do question, don't you,
0:04:33 > 0:04:36why somebody didn't take that wall out when they did this -
0:04:36 > 0:04:38that would be, incorporating that,
0:04:38 > 0:04:41a perfect-sized kitchen for this property.
0:04:41 > 0:04:45Um, the other bad thing, unfortunately, is this!
0:04:45 > 0:04:51Right at the back of the house, this is your bathroom and loo.
0:04:51 > 0:04:54Um, now surely, surely, for this kind of house,
0:04:54 > 0:04:57this isn't the only bathroom and loo?
0:04:58 > 0:05:00Is it?
0:05:00 > 0:05:04# I am the one and only... #
0:05:08 > 0:05:12Yes! The Homes Under The Hammer downstairs bathroom nemesis returns,
0:05:12 > 0:05:16along with the often-seen tiny kitchen-big house syndrome.
0:05:16 > 0:05:20Still, knocking through to creating a kitchen/diner is possible here
0:05:20 > 0:05:23and certainly worth looking into.
0:05:24 > 0:05:28Moving outside, and it's all looking a little tired and unloved.
0:05:28 > 0:05:31And, because of the extension that houses the kitchen,
0:05:31 > 0:05:36the garden is not as big as I'd like to see for a house of this size.
0:05:37 > 0:05:39Time to take a look upstairs.
0:05:39 > 0:05:41Aha!
0:05:41 > 0:05:46So, upstairs, and, well, there is a loo, which is good!
0:05:46 > 0:05:48Um, it's a shame it's not a bathroom,
0:05:48 > 0:05:51but the good news is at least all the soil pipes and things
0:05:51 > 0:05:55are upstairs and all the plumbing, so extending that perhaps
0:05:55 > 0:05:59into one of the bedrooms isn't going to be a massive, massive job.
0:05:59 > 0:06:02Putting soil pipes in and everything definitely would be.
0:06:02 > 0:06:06But what have we got up here? Three bedrooms, good sizes.
0:06:06 > 0:06:10Nice-sized landing, but again, why, oh, why in the day
0:06:10 > 0:06:15did people cover up... Look at that! Beautiful spindles!
0:06:15 > 0:06:17HE LAUGHS
0:06:17 > 0:06:22..with this stuff?! I mean, was that ever a fashion?!
0:06:22 > 0:06:26I don't know! Anyway, um, another bedroom there, it's a good size.
0:06:26 > 0:06:29And then through to... the crowning glo...
0:06:29 > 0:06:31Oh. Here was me getting all excited!
0:06:31 > 0:06:33Crowning glory, I was just about to say!
0:06:33 > 0:06:37An absolutely massive master bedroom, with that bay window.
0:06:37 > 0:06:43But that looks like...there's a bit of a problem with the roof there.
0:06:43 > 0:06:46It's obviously leaking in.
0:06:46 > 0:06:50Um, that needs to be checked out and resolved straightaway.
0:06:50 > 0:06:53Other than that, I can still get back to my enthusiastic
0:06:53 > 0:06:57happiness about the whole house. Now, even with that, it's brilliant!
0:06:57 > 0:07:01It does have its problems with damp and layout, but with a guide price
0:07:01 > 0:07:06of 100,000, in the right hands, this property could be really lovely.
0:07:07 > 0:07:12What does a local property agent make of it?
0:07:12 > 0:07:14Um, if I was to improve this property,
0:07:14 > 0:07:15I feel that I would, um,
0:07:15 > 0:07:17basically refurbish it right through.
0:07:17 > 0:07:21I think the main area you've got to focus on is a family room.
0:07:21 > 0:07:23Perhaps knock the breakfast room and kitchen into one
0:07:23 > 0:07:26and move the bathroom upstairs.
0:07:26 > 0:07:29I feel the cost of refurbishment would be in the region
0:07:29 > 0:07:31of about £30,000.
0:07:31 > 0:07:34A fair sum of money, so what kind of value could be
0:07:34 > 0:07:38placed on the property once refurbishment was complete?
0:07:38 > 0:07:43I feel the property would be worth between 165 and £175,000,
0:07:43 > 0:07:47once refurbished, depending on the standard of the refurbishment.
0:07:47 > 0:07:50- And now, rental?- I feel the rental value for this property
0:07:50 > 0:07:55would be in the region of £800-£850 per calendar month.
0:07:56 > 0:08:00Well, a few issues to resolve, mainly sorting out that toilet
0:08:00 > 0:08:04and moving it upstairs, and also the downstairs layout,
0:08:04 > 0:08:05definitely a few tweaks required.
0:08:05 > 0:08:10But, intrinsically, a solid house and a big house for the money.
0:08:10 > 0:08:13Let's see who went for it when it went under the hammer.
0:08:14 > 0:08:19So, 100,000 is the guide. Looking to go at 100,000, if we can.
0:08:19 > 0:08:23£100,000? Who's going to start me off at 100 in the room?
0:08:23 > 0:08:24Sir will, at 100, thank you.
0:08:24 > 0:08:27£100,000, seated. 101, somewhere else?
0:08:27 > 0:08:30Back on the right, 101. 102?
0:08:30 > 0:08:32102. 103?
0:08:32 > 0:08:34'Surprisingly, it was a very slow start,
0:08:34 > 0:08:40'with some very cautious bidding. We rejoin at £111,000.'
0:08:40 > 0:08:41111. 112.
0:08:41 > 0:08:43And 13?
0:08:43 > 0:08:46113. 114?
0:08:46 > 0:08:48115.
0:08:48 > 0:08:51114, seated. Against you?
0:08:51 > 0:08:54At £114,000, for the first time, seated here.
0:08:54 > 0:08:57Second time at 114. I'll take 500 from you
0:08:57 > 0:08:59if that'll help you two gents at the back there.
0:08:59 > 0:09:03At £114,000, selling here to the gentleman seated.
0:09:03 > 0:09:06At 114,000... Are we done?
0:09:06 > 0:09:07Sold to you.
0:09:09 > 0:09:13That successful bid of £114,000 was made by Stefan who,
0:09:13 > 0:09:15along with his partner Alison, is
0:09:15 > 0:09:20stepping into the world of property renovation for the first time.
0:09:20 > 0:09:24I met them both back at the property to find out more.
0:09:25 > 0:09:28Stefan, Alison, great to meet you both. Congratulations.
0:09:28 > 0:09:31- BOTH: Thank you.- Tell me why you wanted to buy this place.
0:09:31 > 0:09:35Well, we were looking for a reasonably-priced period property.
0:09:35 > 0:09:38Somewhere that hadn't been modernised and messed around with
0:09:38 > 0:09:43too much and, hopefully, sell it on, you know, at a reasonable price.
0:09:43 > 0:09:46Right. So what's the appeal of sort of period properties?
0:09:46 > 0:09:49They've got character, they've got personality. There is...
0:09:49 > 0:09:52This particular property, all the period features have been covered up,
0:09:52 > 0:09:56and so what we want to do is just bring them back and reveal them.
0:09:56 > 0:09:57Just to bring it out and make it
0:09:57 > 0:10:00- beautiful and harmonious. - Are you going to...?
0:10:00 > 0:10:02- Harmonious? An interesting word! - LAUGHTER
0:10:02 > 0:10:04- Mm-hm!- Harmonious! - SHE GIGGLES
0:10:04 > 0:10:06How do you make a property harmonious?
0:10:06 > 0:10:08Well, I think there's a sense of balance
0:10:08 > 0:10:11- and what we liked about this house was that it flowed...- Ah!
0:10:11 > 0:10:14..and the light was nice in it, and it feels nice.
0:10:14 > 0:10:17# I'm picking up good vibrations
0:10:17 > 0:10:20# She's giving me the excitations... #
0:10:22 > 0:10:24Alison is a psychologist, so perhaps
0:10:24 > 0:10:29being tuned into her surroundings is just second nature to her.
0:10:29 > 0:10:31Stefan has worked as a carpenter
0:10:31 > 0:10:34and has just completed an interior design course.
0:10:34 > 0:10:37That, along with their enthusiasm for period charm,
0:10:37 > 0:10:40definitely gives me good vibes about this project.
0:10:40 > 0:10:44They have plans to restore the period features, like the fireplace.
0:10:44 > 0:10:47But, of course, there are more fundamental issues to tackle.
0:10:47 > 0:10:51The problem area is really the kitchen and breakfast room.
0:10:51 > 0:10:53And we're not quite sure what we're going to do with that yet.
0:10:53 > 0:10:58- We might possibly demolish the whole lot...- Oh?- ..and rebuild it.
0:10:58 > 0:11:01- We are going to open it up... - Yeah.- ..to make a big kitchen/diner.
0:11:01 > 0:11:06- Right.- Get light in there, find a way to open it up to the garden,
0:11:06 > 0:11:08so that there's a connection between the two.
0:11:08 > 0:11:11We're not quite sure how we're going to do that yet, and what we're going
0:11:11 > 0:11:14- to incorporate.- Yeah.- And you've got the bathroom there as well.
0:11:14 > 0:11:16- Yeah, that's got to go upstairs.- Yeah.
0:11:16 > 0:11:18So we've got to borrow space,
0:11:18 > 0:11:21possibly borrow a little bit of space from two of the bedrooms
0:11:21 > 0:11:23and put the bathroom sort of in the middle there.
0:11:23 > 0:11:27So are you going to actually do some of the physical work?
0:11:27 > 0:11:28Because that's the fun bit at times -
0:11:28 > 0:11:31ripping things off and discovering what's there.
0:11:31 > 0:11:35- Yeah, we hope to, yeah.- Yeah.- Yeah, a bit of uncovering of history.
0:11:35 > 0:11:37So what's the budget?
0:11:37 > 0:11:41- The budget is £30,000-£40,000. - Mm-hm. What the timescale?
0:11:41 > 0:11:44- Three or four months?- Yeah. - And it's your first venture?
0:11:44 > 0:11:48- Yeah.- It is, yeah, it is. So part of what we're doing is the learning.
0:11:48 > 0:11:52We need to make a profit, but it's also a learning process for us.
0:11:52 > 0:11:55- Yeah.- So we will put quite a lot of thought in it, because I think,
0:11:55 > 0:11:58if you put care into something for people, they feel it.
0:11:58 > 0:12:00And they want to live there.
0:12:00 > 0:12:03So we will be thinking quite a lot about how to finish it
0:12:03 > 0:12:06and how to make it nice for people, but without going mad on the price,
0:12:06 > 0:12:08cos there's definitely a ceiling on this street.
0:12:08 > 0:12:11- Well, listen, congratulations to you both.- Thank you.- Good luck with it.
0:12:11 > 0:12:15- Thanks, Martin, thanks a lot.- We'll see how you get on.- Yeah, thank you.
0:12:16 > 0:12:19Well, I think Alison and Stefan have chosen really well
0:12:19 > 0:12:22for their first property development project.
0:12:22 > 0:12:25I can't wait to see what they do, especially sorting out
0:12:25 > 0:12:29the back here, cos it definitely needs a bit of internal work.
0:12:29 > 0:12:32Will it be a harmonious result?
0:12:32 > 0:12:35You can find out later in the programme.
0:12:40 > 0:12:43This is the area of Tottenham in North London.
0:12:43 > 0:12:44Times are changing here,
0:12:44 > 0:12:48with perhaps its most famous residents - local football team
0:12:48 > 0:12:53Tottenham Hotspur - announcing plans to build a new stadium locally.
0:12:53 > 0:12:56As well as redevelopment of White Hart Lane station
0:12:56 > 0:12:59being part of regeneration happening in the wider area.
0:12:59 > 0:13:02It all sounds pretty positive, doesn't it? Well, let's see
0:13:02 > 0:13:06if that continues with the auction property I'm here to visit.
0:13:06 > 0:13:09As you can see, well, this can be quite a busy road,
0:13:09 > 0:13:11but it's also convenient as it's on the bus route
0:13:11 > 0:13:16and White Hart Lane train station is only a five-minute walk away.
0:13:16 > 0:13:21Now, the two-bed flat I'm here to see had a guide price of £140,000.
0:13:21 > 0:13:23And it's at this rather large development.
0:13:23 > 0:13:26Now, I've just got to find it.
0:13:26 > 0:13:27Wish me luck!
0:13:29 > 0:13:32This is a fairly new development,
0:13:32 > 0:13:36built in the 1980s and on the site of a former boys school.
0:13:36 > 0:13:39If you like character, then these flats won't be for you,
0:13:39 > 0:13:42but practically speaking, they certainly work.
0:13:42 > 0:13:44There's plenty of parking for residents
0:13:44 > 0:13:48and the blocks are set back away from that busy road.
0:13:48 > 0:13:50Now, time to brave the stairs.
0:13:50 > 0:13:53Something to bear in mind, if buying a leasehold flat,
0:13:53 > 0:13:56with communal areas like this, is there will almost certainly
0:13:56 > 0:13:59be a service charge, as well as the ground rent.
0:13:59 > 0:14:03In this instance, these come in at around two grand a year.
0:14:03 > 0:14:05If I bought this flat, I'd like to know
0:14:05 > 0:14:08where that money is being spent, as the hallway
0:14:08 > 0:14:11could certainly do with a lick of paint and a bit of a tidy up!
0:14:11 > 0:14:14Still, the length of the lease is around 120 years,
0:14:14 > 0:14:16so no issues there.
0:14:16 > 0:14:17OK, so I have cheated.
0:14:17 > 0:14:21I did have a little rest before I entered the flat.
0:14:21 > 0:14:24And that's because there's three flights of stairs to climb,
0:14:24 > 0:14:26so, once you've got over the shock of that,
0:14:26 > 0:14:28it's actually not a bad little flat.
0:14:28 > 0:14:32So, through here, we've got a really nice-sized double bedroom,
0:14:32 > 0:14:35a single bedroom through here, a bathroom with a white suite,
0:14:35 > 0:14:39although, I would say, a little bit shabby around the edges
0:14:39 > 0:14:44and that's not shabby chic. Um, through here, into the lounge area.
0:14:44 > 0:14:47Now, again, a fantastic space. No central heating.
0:14:47 > 0:14:50You've just got these heaters here on the wall.
0:14:50 > 0:14:51That's not even on the wall.
0:14:51 > 0:14:55So, look, you can just see, it needs a bit of love, some TLC.
0:14:55 > 0:14:58You've got the textured ceilings up there,
0:14:58 > 0:15:00which will need to be sorted out.
0:15:00 > 0:15:03Lovely big window, though, letting in loads of light.
0:15:03 > 0:15:06Ah! And through here, a tiny kitchen!
0:15:06 > 0:15:10Ha! A very small kitchen indeed, which is a bit of a disappointment.
0:15:10 > 0:15:13Now, you may notice there's a lot of things lying around.
0:15:13 > 0:15:14That's because this flat is tenanted,
0:15:14 > 0:15:17but they have been served notice and are about to move out,
0:15:17 > 0:15:21so you've got to see beyond all the things that are lying around.
0:15:21 > 0:15:23So not a bad property.
0:15:23 > 0:15:27Good space, good location, good proximity to the tube station.
0:15:27 > 0:15:29It just needs some TLC and some money spending on it.
0:15:29 > 0:15:33Then you've got a really nice little two-bedroom flat here.
0:15:34 > 0:15:37So, because the tenants are due to move out,
0:15:37 > 0:15:40that allows the buyer to carry out some refurbishments.
0:15:40 > 0:15:42# Fix up, look sharp... #
0:15:42 > 0:15:45And the good news is, once it's empty, well,
0:15:45 > 0:15:48I don't really think it'll take too much money to turn it around.
0:15:48 > 0:15:51Those windows are fine and, once remounted onto the wall,
0:15:51 > 0:15:53there's heating in here too.
0:15:53 > 0:15:55Now, I'm not a fan of the cheap laminate flooring,
0:15:55 > 0:15:58so I would change that to something of a better quality,
0:15:58 > 0:16:01and you could get away with cleaning the kitchen and the bathroom,
0:16:01 > 0:16:05but personally, I'd like to change them if I was going to live here.
0:16:05 > 0:16:09Now, you might well be thinking just what I was thinking -
0:16:09 > 0:16:12close to the station, plenty of parking -
0:16:12 > 0:16:15this would make a great buy-to-let.
0:16:15 > 0:16:19However, if you'd read the legal document before this went to
0:16:19 > 0:16:22auction, well, you'd know there's a clause in there that states
0:16:22 > 0:16:25these flats have to be owner-occupied.
0:16:25 > 0:16:27Now, you can negotiate with the freeholder
0:16:27 > 0:16:29and, with their permission only,
0:16:29 > 0:16:32you might be allowed to rent it in the end,
0:16:32 > 0:16:37but that is not guaranteed and it could take so much time to sort.
0:16:37 > 0:16:41I've said it once, I'll say it again - always read the legal pack.
0:16:41 > 0:16:43Case in point right there.
0:16:43 > 0:16:48- # Baby, you better... - Better!- ..be aware... #
0:16:48 > 0:16:51Now, yes, I know, this flat currently has tenants,
0:16:51 > 0:16:55but clauses can be added by the freeholder, so what went before does
0:16:55 > 0:17:00not necessarily mean any subsequent buyers will be given permission.
0:17:00 > 0:17:03When it comes to property, never assume anything.
0:17:03 > 0:17:05If you don't read that legal pack,
0:17:05 > 0:17:08all sorts of problems can, er, well, sprout up!
0:17:08 > 0:17:10Oops! Sorry, wrong veg!
0:17:12 > 0:17:14We invited a local estate agent
0:17:14 > 0:17:17to get his opinion on this purpose-built
0:17:17 > 0:17:19two-bedroom property.
0:17:19 > 0:17:21It's spacious, it's a very bright flat.
0:17:21 > 0:17:24It doesn't actually need that much work doing to it.
0:17:24 > 0:17:27My advice would be just to paint it, giving it a freshen up.
0:17:27 > 0:17:30Possibly change the floors, um,
0:17:30 > 0:17:32a new kitchen and a new bathroom and that...
0:17:32 > 0:17:34Literally, that's it, you've got a healthy lease here,
0:17:34 > 0:17:36a nice, bright spacious flat.
0:17:36 > 0:17:39So we're agreed - not much to do here.
0:17:39 > 0:17:43What would you spend on top of the £140,000 guide price
0:17:43 > 0:17:45to get it up to scratch?
0:17:45 > 0:17:50Maybe 10 grand? So what could it be worth, then, on the open market?
0:17:50 > 0:17:55Renovated nicely, I think it would fetch close to £300,000.
0:17:55 > 0:17:58And if you bought this for a rental portfolio, what could you
0:17:58 > 0:18:02expect it to achieve if you were given permission to rent it out?
0:18:02 > 0:18:05Once it's renovated to a good standard, I think
0:18:05 > 0:18:09the property would rent for up to £1,200 per calendar month.
0:18:09 > 0:18:11Well, as far as renovations go,
0:18:11 > 0:18:14this seems like a fairly straightforward one and I don't
0:18:14 > 0:18:17think it should take too much time and money to turn it around.
0:18:17 > 0:18:21I just hope whoever bought it did their homework.
0:18:21 > 0:18:24On face value, well, it screams buy-to-let!
0:18:24 > 0:18:29But we all know it might not be as easy as that. Don't we?
0:18:29 > 0:18:32Let's head to the auction and find out who the purchaser was.
0:18:34 > 0:18:3895. A leasehold, self-contained, purpose-built third-floor flat.
0:18:38 > 0:18:41We've got two bedrooms. Start me at 150.
0:18:41 > 0:18:43150 anywhere?
0:18:43 > 0:18:47Thank you very much, by, er, by the wall, as far away as possible. 150.
0:18:47 > 0:18:50Five, anyone? 155, anywhere?
0:18:50 > 0:18:53Thank you. 55? 60. 65?
0:18:53 > 0:18:5670? 75.
0:18:56 > 0:18:5980? 85.
0:18:59 > 0:19:01It's against you gentlemen, the two together,
0:19:01 > 0:19:03standing up in front of me.
0:19:03 > 0:19:05185. 190, sir?
0:19:05 > 0:19:08190. 95. 195.
0:19:08 > 0:19:10At 200. Your pleasure, sir?
0:19:10 > 0:19:12Good bid, at 200. And five?
0:19:12 > 0:19:14200 I have on my left, shake of the head.
0:19:14 > 0:19:16Right, with you at 200, open bidder.
0:19:16 > 0:19:17First time.
0:19:17 > 0:19:20Second time. Anybody else?
0:19:20 > 0:19:25Third and last time, at £200,000, on my left.
0:19:25 > 0:19:28Are we all done? I think we are. 200,000 over here.
0:19:28 > 0:19:29Anybody else? No.
0:19:29 > 0:19:31Yours at 200.
0:19:31 > 0:19:36And with that successful bid of £200,000 was Will...
0:19:37 > 0:19:40..who bought the flat with friend and new business partner Chris,
0:19:40 > 0:19:43and it's Chris that I'm meeting today.
0:19:43 > 0:19:45This is the pair's first venture together,
0:19:45 > 0:19:49so I was curious to find out what they had in store for the place.
0:19:50 > 0:19:52- Congratulations.- Thank you.
0:19:52 > 0:19:55So what was your plan behind your bidding scheme on the day?
0:19:55 > 0:19:57So, it was a little bit chaotic.
0:19:57 > 0:20:02Um, we were debating what price to go up to,
0:20:02 > 0:20:05up until the moment that the property came on.
0:20:05 > 0:20:09- So he was on the phone to you?- So, he was sort of text messaging me.
0:20:09 > 0:20:17Um, and we fluctuated between about 200 and about 230.
0:20:17 > 0:20:20And so, there could've been some recriminations
0:20:20 > 0:20:23if it had have got up towards that ceiling, I think.
0:20:23 > 0:20:24So who wanted to go higher?
0:20:24 > 0:20:27I was the most cautious before the day and then, on the day,
0:20:27 > 0:20:31- I was saying, "No, let's go higher!" - Wow! So you just braved it out?
0:20:31 > 0:20:35A little bit, yeah. Or panicked, whichever way you look at it.
0:20:35 > 0:20:37'Chris is keen to find a place of his own,
0:20:37 > 0:20:39'but with the fast-moving market,
0:20:39 > 0:20:42'finding that elusive deposit was a challenge,
0:20:42 > 0:20:45'so he and friend Will have pooled resources in what
0:20:45 > 0:20:49'they hope will be a buy-to-let, so there's quite a bit at stake here.'
0:20:49 > 0:20:52And, on auction day, did you feel 100% prepared?
0:20:52 > 0:20:54I mean, had you read the legal pack?
0:20:54 > 0:20:57Were you there knowing everything you needed to know?
0:20:57 > 0:20:59So, we'd read the legal pack the night before.
0:20:59 > 0:21:01We kind of didn't really know how it worked.
0:21:01 > 0:21:04YOU read it the night before? You didn't hand it to your solicitor?
0:21:04 > 0:21:07So, we did, but again, they sort of came back and said,
0:21:07 > 0:21:10"When is the auction?" And we said, "First thing tomorrow morning."
0:21:10 > 0:21:14They said, "There's a limited amount that I can look over in this time."
0:21:14 > 0:21:17And then, was there some glaringly obvious thing
0:21:17 > 0:21:19that you thought, "Oops!"
0:21:19 > 0:21:22So, at the time, we thought,
0:21:22 > 0:21:24"Perfect, this has all gone very well."
0:21:24 > 0:21:28And, um, and I got a phone call from Will, which just said,
0:21:28 > 0:21:30"We may have a problem."
0:21:30 > 0:21:33He'd come to look at another property in this development
0:21:33 > 0:21:35and he'd been told by the estate agent
0:21:35 > 0:21:38that they weren't legally allowed to rent them out,
0:21:38 > 0:21:40and so we thought that we may just have bought somewhere
0:21:40 > 0:21:43that we couldn't then rent out. So we were quite panicked and also,
0:21:43 > 0:21:47because we've got a buy-to-let mortgage for the property,
0:21:47 > 0:21:50we were also concerned about whether we would be able to get that.
0:21:50 > 0:21:57- Oh!- And so, fortunately, Will spoke to the freeholder, effectively,
0:21:57 > 0:22:00and, fortunately, we got reassurance that we'd need
0:22:00 > 0:22:04to inform them, there'd be a sort of form to fill in, there'd be
0:22:04 > 0:22:09- a nominal payment to make, but that we could rent it out, so...- Phew!
0:22:09 > 0:22:12..that was quite a stressful 24 hours.
0:22:12 > 0:22:16'So, Chris and Will's plans nearly came unstuck
0:22:16 > 0:22:19'because they simply didn't do their research thoroughly enough.
0:22:19 > 0:22:21'Luckily, the panic is now over,
0:22:21 > 0:22:25'but there's still a flat to renovate before they can rest easy.'
0:22:25 > 0:22:28So, what are you going to do to turn the flat around?
0:22:28 > 0:22:29My friend Will, who I bought it with,
0:22:29 > 0:22:32came and had a look at the weekend and he came in and said,
0:22:32 > 0:22:36"I don't think we need to do very much work to it," and then,
0:22:36 > 0:22:39I came in and thought, "We need to rip everything out
0:22:39 > 0:22:42"and redo everything," and so, I think we still need to have
0:22:42 > 0:22:45a little bit of a conversation about where we come out on that.
0:22:45 > 0:22:48Oh, I love that! You see, that's the difference between two friends!
0:22:48 > 0:22:51One person wants to rip everything out and one person thinks you could
0:22:51 > 0:22:54- just use a J-cloth and wipe it over! - Yeah, yeah, exactly, exactly.
0:22:55 > 0:22:59'One thing Will and Chris do agree on is that both the kitchen
0:22:59 > 0:23:01'and bathroom are going to want replacing.
0:23:01 > 0:23:05'The rest? Well, I guess we'll have to wait and see.
0:23:05 > 0:23:08'The pair have set themselves a budget of around 10,000
0:23:08 > 0:23:12'and plan to have the work complete in three to four months.'
0:23:12 > 0:23:14So, who is going to do the work here?
0:23:14 > 0:23:17So, we haven't had conversations with people who would do
0:23:17 > 0:23:20the work yet, which is always a little bit of a concern,
0:23:20 > 0:23:22because you never know how that's going to go.
0:23:22 > 0:23:25- Seems like you haven't got a major plan set, have you?- Um...
0:23:25 > 0:23:27You're a little bit making it up as you go along!
0:23:27 > 0:23:31- I think that's a fair conclusion. - Listen, Chris, congratulations.
0:23:31 > 0:23:33I think you have got yourselves a fantastic flat.
0:23:33 > 0:23:35- It certainly does need a spruce up.- Mm-hm.
0:23:35 > 0:23:38I can't wait to see what you do here. Good luck with this project.
0:23:38 > 0:23:39- Thank you.- Thank you.
0:23:41 > 0:23:46So, Chris DID read the legal pack, just not thoroughly enough.
0:23:46 > 0:23:50He's had a lucky escape this time, but that's his first lesson learned.
0:23:50 > 0:23:53I just hope that, now they have the keys,
0:23:53 > 0:23:56he and his business partner Will do actually make a plan
0:23:56 > 0:23:59to turn this flat around, that they agree on.
0:23:59 > 0:24:01Join me later on in the programme
0:24:01 > 0:24:03and you can find out how they get on.
0:24:04 > 0:24:07'Coming up, in Newcastle-under-Lyme, Ivan doesn't exactly
0:24:07 > 0:24:09'get his top pick at auction.'
0:24:09 > 0:24:12Where was it on the list? That's the big question.
0:24:12 > 0:24:14- Down towards the bottom, actually. - LAUGHTER
0:24:16 > 0:24:18While, in Tottenham, North London,
0:24:18 > 0:24:21Chris lucks out on his search for a reliable builder.
0:24:21 > 0:24:24Um, touch wood, that has worked out very well.
0:24:28 > 0:24:30Now, let's head back to the south coast of Devon
0:24:30 > 0:24:35and the historical maritime city of Plymouth, where I visited this
0:24:35 > 0:24:41three-bedroomed Victorian property with a guide price of £100,000-plus.
0:24:41 > 0:24:46Inside, and the house was in need of some serious TLC,
0:24:46 > 0:24:50including damp treatment and perhaps a structural reshuffle
0:24:50 > 0:24:54to open up the kitchen and move the bathroom upstairs.
0:24:54 > 0:24:57'But that aside, this had the potential to be a grand old house,
0:24:57 > 0:25:00'jam-packed with charming period features,
0:25:00 > 0:25:02'if a little hidden at times.'
0:25:02 > 0:25:06Why, oh, why in the day did people cover up...
0:25:06 > 0:25:10Look at that! Beautiful spindles!
0:25:10 > 0:25:12HE LAUGHS
0:25:12 > 0:25:17..with this stuff?! I mean, was that ever a fashion?!
0:25:17 > 0:25:21# The word is about There's something revolving... #
0:25:21 > 0:25:24So, whoever bought this place was going to have to do some digging
0:25:24 > 0:25:28to revive this jaded-looking property.
0:25:28 > 0:25:31# That it's all just little bit of history repeating... #
0:25:33 > 0:25:38So, off to auction it went, and with the final bid of £114,000
0:25:38 > 0:25:42was first-time property developer Stefan and Alison.
0:25:42 > 0:25:45Being a carpenter by trade, Stefan had recently finished a course
0:25:45 > 0:25:50in interior design and had a keen eye for period detail in this house.
0:25:52 > 0:25:53I mean, this particular property,
0:25:53 > 0:25:55all the period features have been covered up, and so
0:25:55 > 0:25:58what we want to do is just bring them back and reveal them.
0:25:58 > 0:26:01A bit of uncovering of history.
0:26:01 > 0:26:05# Aside set the little bits of history repeating... #
0:26:05 > 0:26:08Returning this property back to its former glory had its challenges,
0:26:08 > 0:26:12but with a budget of £40,000 and a timescale of four months,
0:26:12 > 0:26:16I felt this couple's enthusiasm would make it a success.
0:26:18 > 0:26:20And, by the looks of it, I was right.
0:26:30 > 0:26:33They promised to do this with feeling and,
0:26:33 > 0:26:38although it's taken over a year, harmonious is definitely the word.
0:26:38 > 0:26:42Gone are the vestiges of the '50s and 60s and in their place
0:26:42 > 0:26:45are some classy and sympathetic decor.
0:26:45 > 0:26:48Thanks to Stefan's interior design course no doubt.
0:26:48 > 0:26:52This is Victorian splendour with a modern twist,
0:26:52 > 0:26:55and if you thought the two front rooms were great,
0:26:55 > 0:26:57wait till you see the kitchen!
0:26:59 > 0:27:03The previous extension housing that poky breakfast room,
0:27:03 > 0:27:06kitchen and bathroom has been demolished and rebuilt.
0:27:06 > 0:27:10The result is this stunning-looking modern kitchen/diner.
0:27:10 > 0:27:13Upstairs, and the pair have continued the restoration job,
0:27:13 > 0:27:15ripping off all that panelling
0:27:15 > 0:27:19and exposing those beautiful spindles on the staircase banister.
0:27:20 > 0:27:23The bedrooms have also had a face-lift, being replastered
0:27:23 > 0:27:25and redecorated throughout.
0:27:26 > 0:27:30And, in the master bedroom, that worrying hole in the ceiling
0:27:30 > 0:27:33has been addressed and it's now looking incredible!
0:27:33 > 0:27:36But whatever happened to that bathroom?
0:27:36 > 0:27:38We decided the best thing to do, the best use of space,
0:27:38 > 0:27:41in order to keep the three bedrooms,
0:27:41 > 0:27:45was we could just about borrow a metre from this bedroom and a metre
0:27:45 > 0:27:49from this bedroom, we could create an internal bathroom space here.
0:27:49 > 0:27:51And, because it was an internal bathroom, we thought,
0:27:51 > 0:27:53"Let's make it look really nice.
0:27:53 > 0:27:55"Let's make people really want to be in here."
0:27:55 > 0:27:59So we spent quite a lot of money on the tiles
0:27:59 > 0:28:03and the fittings in here and, you know, I feel that we've
0:28:03 > 0:28:10created quite a luxurious bathroom to give it that kind of wow factor.
0:28:10 > 0:28:13It certainly isn't lacking in wow factor!
0:28:13 > 0:28:16Alison and Stefan have done a remarkable job with
0:28:16 > 0:28:20renovating this house, with an incredible attention to detail.
0:28:20 > 0:28:22Part of the reason we wanted to buy this house is
0:28:22 > 0:28:24there's lots of lovely original features,
0:28:24 > 0:28:29all hidden away, all panelled and painted over in the 1970s style.
0:28:29 > 0:28:32So we started to take them off and they were all really
0:28:32 > 0:28:36wonderfully protected, including the panels in the hallway,
0:28:36 > 0:28:39the wood panelling and then there's hand-painted tiles
0:28:39 > 0:28:41of Scottish scenes, which apparently are quite rare.
0:28:41 > 0:28:44There's no doubt that Alison and Stephan have put a lot of time
0:28:44 > 0:28:49and effort into restoring this home to its former glory, and although
0:28:49 > 0:28:53they do plan to sell, it's clearly been a labour of love for the pair.
0:28:53 > 0:28:58I just think, having taken something that was really quite tired
0:28:58 > 0:29:00and shabby and worn down and restored it
0:29:00 > 0:29:04and made it beautiful, is the most rewarding thing for me.
0:29:04 > 0:29:08Alison and Stefan, with the help of friend and builder Ricardo
0:29:08 > 0:29:10and trusty labourer Matt,
0:29:10 > 0:29:14have done the lion's share of the work here and a good job too.
0:29:14 > 0:29:17But maybe that small team explains the big overrun
0:29:17 > 0:29:20from their original timescale.
0:29:20 > 0:29:23Yeah, I'd hoped it would've taken about four or five months.
0:29:23 > 0:29:25In the end, it's taken about a year to do,
0:29:25 > 0:29:28but that's because we've had to rebuild the extension.
0:29:28 > 0:29:30It's also taken longer
0:29:30 > 0:29:33because the last bit of it has been very fiddly,
0:29:33 > 0:29:35getting the details right, just those finishing touches.
0:29:37 > 0:29:41They have gone over their original £40,000 budget and have come in
0:29:41 > 0:29:47at 55,000, making the grand total for this house 169,000.
0:29:51 > 0:29:55So, will our first-time property investors turn a profit?
0:29:55 > 0:29:57We invited two local estate agents
0:29:57 > 0:29:59to find out.
0:29:59 > 0:30:02Er, this is the second time inside the property
0:30:02 > 0:30:04and I think the work that's been carried out has been to
0:30:04 > 0:30:06an extremely high standard.
0:30:06 > 0:30:07It's nice to see that they've actually done
0:30:07 > 0:30:10something different other than magnolia and white.
0:30:10 > 0:30:13They've really dressed the property well and they've emphasised
0:30:13 > 0:30:16the period features and the feel of the property and I think
0:30:16 > 0:30:19they've made it very attractive to any potential family buyers.
0:30:19 > 0:30:23They're as impressed as I am, but as Alison said,
0:30:23 > 0:30:27there is a ceiling price, so has their attention to detail
0:30:27 > 0:30:29and their overspend bit into profit their profit?
0:30:29 > 0:30:33Remember, they've spent a total of £169,000.
0:30:33 > 0:30:36So what could this lovely house sell for?
0:30:36 > 0:30:39If we were to put the property on the market today,
0:30:39 > 0:30:42I feel we would achieve £200,000 for it.
0:30:42 > 0:30:45I'd be putting it on the market for 199,950
0:30:45 > 0:30:49to achieve offers in excess of £195,000.
0:30:49 > 0:30:53To me, that was about what I expected.
0:30:53 > 0:30:56Obviously, hope we get more, cos we put a lot of effort
0:30:56 > 0:30:59and a lot of extra thought into the house.
0:31:01 > 0:31:03Alison is a bit disappointed there.
0:31:03 > 0:31:05But that valuation of 200,000
0:31:05 > 0:31:10could mean a potential profit of 31,000, minus taxes and fees.
0:31:10 > 0:31:15However, the couple have put the property on the market for 219,000.
0:31:15 > 0:31:17But what could they get if they rented it?
0:31:19 > 0:31:21If we were going to put the property on the rental market,
0:31:21 > 0:31:25we would be asking £950 per calendar month for it.
0:31:25 > 0:31:29We'd be looking at marketing it at £950 per calendar month,
0:31:29 > 0:31:33in order to achieve somewhere around £925 per calendar month.
0:31:33 > 0:31:37That's... That's good. That's higher than I'd expected.
0:31:38 > 0:31:42That top figure would mean a yield of nearly 6.5%.
0:31:42 > 0:31:46But it's not going to sway them. They plan to sell.
0:31:46 > 0:31:48They're going to take a much-needed break for now,
0:31:48 > 0:31:51but after this project, what advice do they have?
0:31:52 > 0:31:56Don't skimp on things. Don't try and hide things.
0:31:56 > 0:32:00You know, do an honest refurbishment and be proud of what you're doing.
0:32:06 > 0:32:08This is the market town of Newcastle-under-Lyme
0:32:08 > 0:32:13in Staffordshire. It has great road links to the A500 and M6.
0:32:14 > 0:32:18I'm visiting the suburb of Clayton, which is the last urban area
0:32:18 > 0:32:22before you get to some lovely Staffordshire countryside.
0:32:22 > 0:32:25And here it is - it's an ex-local authority house,
0:32:25 > 0:32:29has three bedrooms and it has a guide price of £54,000-plus.
0:32:29 > 0:32:31Let's take a look.
0:32:38 > 0:32:40OK, we've got a small porchway area,
0:32:40 > 0:32:43with the stairs going up to the bedrooms.
0:32:43 > 0:32:47Concrete floor - that's probably why it feels a little bit cold in here -
0:32:47 > 0:32:52but, er, if rooms were tired, this isn't tired, this one's exhausted!
0:32:52 > 0:32:55It does need a complete refurb in here.
0:32:55 > 0:32:59That sense of cold and dampness is going to be coming from this as well.
0:32:59 > 0:33:02Some severe water damage that's leaked in somehow
0:33:02 > 0:33:05and you will have to find the source of that problem.
0:33:05 > 0:33:07That's quite severe.
0:33:07 > 0:33:09Let's have a look and see what's in here.
0:33:09 > 0:33:12OK, we're through into the kitchen area here
0:33:12 > 0:33:15and there's not a lot you could salvage in here.
0:33:15 > 0:33:18I can see, in the corner as well, there's a few signs of damp.
0:33:18 > 0:33:20You have got a bit more space through here.
0:33:20 > 0:33:23You could extend the kitchen, or keep it as a utility room.
0:33:23 > 0:33:26They must have put this door up to keep a dog in there,
0:33:26 > 0:33:28I would've thought. So, first impressions are good,
0:33:28 > 0:33:31but you would need to get that damp sorted out.
0:33:31 > 0:33:35# Everybody's doing the doghouse boogie now... #
0:33:35 > 0:33:37OK, so now the dogs have gone,
0:33:37 > 0:33:40we've definitely got a fixer-upper on our hands.
0:33:40 > 0:33:44Yes, this place is going to need a complete overhaul, but with the scope
0:33:44 > 0:33:48to extend the kitchen, I think this house could turn into a real gem.
0:33:48 > 0:33:51But what about the top floor?
0:33:51 > 0:33:55Upstairs, we've got three bedrooms. You've got a box bedroom behind me.
0:33:55 > 0:33:57You've got a nice-sized bedroom just there,
0:33:57 > 0:34:01with a big window bringing lots of light in. The boiler in there.
0:34:01 > 0:34:04Across the landing, you have got the toilet
0:34:04 > 0:34:08and there's more signs of damp on that back wall as well.
0:34:08 > 0:34:11And a bathroom. I'd be inclined to knock that through,
0:34:11 > 0:34:13give yourself a nice big family bathroom up here.
0:34:13 > 0:34:19And into the third bedroom and you've got a...
0:34:19 > 0:34:24a nice sort of textured plaster just here, on top of wallpaper!
0:34:24 > 0:34:26Which is a first for me.
0:34:28 > 0:34:30I'm pretty sure it won't be the last.
0:34:30 > 0:34:37# Oh, my first, the last My everything... #
0:34:37 > 0:34:40I guess there's a first time for everything.
0:34:40 > 0:34:43The upstairs is looking as exhausted as the ground floor
0:34:43 > 0:34:46and there's more damp that will need some seeing to.
0:34:46 > 0:34:48You don't have to be Sherlock Holmes
0:34:48 > 0:34:50to work out where the damp is coming from, though.
0:34:50 > 0:34:53You can see, from the stains on the back wall,
0:34:53 > 0:34:57that this must've been water leaking from the overflow pipe.
0:34:57 > 0:34:59It looks like it was unattended for some time.
0:34:59 > 0:35:03If ever there was an example of importance in good maintenance,
0:35:03 > 0:35:07then this is it. How much time and money could fixing this have saved?
0:35:09 > 0:35:12On the plus side, there is a decent-sized garden here,
0:35:12 > 0:35:16which isn't unusual with a former local authority property,
0:35:16 > 0:35:20as they often have generous plots by today's standards.
0:35:20 > 0:35:23But, and there's a big but...
0:35:23 > 0:35:26Now, you know how we always say, "Read the legal pack"?
0:35:26 > 0:35:28It's for reasons like this.
0:35:28 > 0:35:31After World War II, building materials were scarce
0:35:31 > 0:35:35and a lot of solid concrete floors were laid on fill material.
0:35:36 > 0:35:39In this area, the fill is usually red ash.
0:35:39 > 0:35:41If it gets damp, the floor bulges up.
0:35:42 > 0:35:44There's only one way to get rid of that problem -
0:35:44 > 0:35:47that's remove the red ash by digging it out.
0:35:47 > 0:35:50That could be time-consuming and costly.
0:35:50 > 0:35:52Two processes you do want to avoid.
0:35:54 > 0:35:58These floors can make lenders very nervous, so check the legal pack
0:35:58 > 0:36:02and see if it's been tested and, if it hasn't, you need to do it.
0:36:04 > 0:36:05So, what more can an agent
0:36:05 > 0:36:09from the auctioneers selling the property have to add?
0:36:09 > 0:36:10After having a look around the property,
0:36:10 > 0:36:14my thoughts have been that it does need a full renovation throughout.
0:36:14 > 0:36:18It does benefit from double glazing and gas central heating, but there
0:36:18 > 0:36:22are signs of damp throughout the property that would need attention.
0:36:22 > 0:36:26So, once done up, would he recommend aiming it at an investor?
0:36:26 > 0:36:29I would target the property onto the residential sales market.
0:36:29 > 0:36:32Um, it's a well-regarded residential area here,
0:36:32 > 0:36:34who I think it would suit an owner occupier.
0:36:34 > 0:36:36Good to know. So that probably means
0:36:36 > 0:36:39a better standard of finish would be best here.
0:36:39 > 0:36:43And, let's face it, there's plenty of room for improvement.
0:36:43 > 0:36:47Assuming that the work's done, what could this house sell for?
0:36:47 > 0:36:50Once renovated, we would place this property on the market
0:36:50 > 0:36:54somewhere in the region between £110,000 and £115,000.
0:36:55 > 0:37:00That's not bad at all. With that low guide price of £54,000-plus,
0:37:00 > 0:37:03in the right hands, this place could be a real money-spinner.
0:37:03 > 0:37:06But what if the buyer chose to rent?
0:37:06 > 0:37:09On completion of the work, I would see this property
0:37:09 > 0:37:13being on the rental market for £550 per calendar month.
0:37:14 > 0:37:18This ex-local authority house could be a really nice family home.
0:37:18 > 0:37:21You would have to get that damp sorted, but I'm pretty sure
0:37:21 > 0:37:24it's coming from that overflow pipe at the back of the property.
0:37:24 > 0:37:27Now, if you get it for anywhere near that guide price,
0:37:27 > 0:37:28you could be onto a winner.
0:37:28 > 0:37:30Let's see who fancied it when it went under the hammer.
0:37:32 > 0:37:36Lot number five, ex-local authority end townhouse.
0:37:36 > 0:37:3750 to get it going?
0:37:37 > 0:37:4050 in the aisle. Ticket in the aisle. Lady's bid 50.
0:37:40 > 0:37:4252, sir? 52.
0:37:42 > 0:37:4554. 56.
0:37:45 > 0:37:4658.
0:37:47 > 0:37:5258. Lady's bid in the aisle, at £58,000. 60 anywhere else?
0:37:52 > 0:37:5460, to my right. 60.
0:37:54 > 0:37:56'Interest in the property was high.
0:37:56 > 0:38:00'We return when the bids had reached £67,000.'
0:38:00 > 0:38:01With you, sir. 67.
0:38:01 > 0:38:04£67,000 once.
0:38:04 > 0:38:06£67,000 twice.
0:38:06 > 0:38:09Third and final time, at £67,000.
0:38:09 > 0:38:12New bidder. 68.
0:38:12 > 0:38:14One more. 69.
0:38:14 > 0:38:18He's shaking his head. 69, still with you, sir, at £69,000.
0:38:18 > 0:38:19All done now?
0:38:19 > 0:38:2269 once. Twice.
0:38:22 > 0:38:25Third and final time, 69,000...
0:38:25 > 0:38:27Bought it, well done.
0:38:27 > 0:38:32With that final bid of £69,000 was John, who was bidding on behalf
0:38:32 > 0:38:35of himself and business partner and best pal Ivan.
0:38:36 > 0:38:37John couldn't make it along today,
0:38:37 > 0:38:40but Ivan could and he's brought along his builder Matt.
0:38:43 > 0:38:45'I met up with them back at the house to find out what
0:38:45 > 0:38:47'they had planned for this place.'
0:38:47 > 0:38:50- Ivan, nice to meet you. Congratulations.- Thank you very much.
0:38:50 > 0:38:52- Matt, nice to meet you. - Hiya, you all right?
0:38:52 > 0:38:56Now, tell us firstly why you didn't make the auction.
0:38:56 > 0:38:58- I was working. - I did know it was going on.
0:38:58 > 0:39:01- LAUGHTER - I was called afterwards!
0:39:01 > 0:39:04- So, you sent along your business partner?- Yeah.
0:39:04 > 0:39:07- Yeah, John, he was there at the auction.- And you trusted him?
0:39:07 > 0:39:11Yes. Yeah, yeah, yeah! He did text, yeah, and he said,
0:39:11 > 0:39:14"Well, I've bought something." Er, this place.
0:39:14 > 0:39:17Did you have any inkling at all? Had you seen it? Had he shown it to you?
0:39:17 > 0:39:20We'd been in and had a look at it a week before the auction
0:39:20 > 0:39:23and it was one of those on the list.
0:39:23 > 0:39:26- But where was it on the list? That's the big question.- Um...
0:39:26 > 0:39:28- Down towards the bottom, mostly! - LAUGHTER
0:39:28 > 0:39:32It wasn't the one they told me they were going for!
0:39:32 > 0:39:35So what does, er, what does John bring to the table?
0:39:35 > 0:39:37- Put the pressure on him!- The money.
0:39:37 > 0:39:38LAUGHTER
0:39:38 > 0:39:40- He deals with the money.- OK!
0:39:40 > 0:39:44So, John, your business partner, deals with the money side of things.
0:39:44 > 0:39:46- Yeah.- Do you find the properties? - Er, well, we find...
0:39:46 > 0:39:50We look for them together and, um, he deals with the money side.
0:39:50 > 0:39:51I deal with Matt.
0:39:51 > 0:39:54- Yeah.- I am a perfectionist and so is Matt, aren't you, Matt?- Yeah.
0:39:54 > 0:39:57And Matt does have some good ideas.
0:39:57 > 0:40:00- So I more or less leave you to it, don't I?- Yeah, pretty much.- Yeah.
0:40:01 > 0:40:04'So now we've got the who's who sorted out,
0:40:04 > 0:40:06'what are the renovation plans?'
0:40:06 > 0:40:09We're going to move the boiler from upstairs to downstairs,
0:40:09 > 0:40:11knock the bathroom into one, cos it's a separate toilet
0:40:11 > 0:40:13and bathroom at the moment,
0:40:13 > 0:40:16and then where the boiler is is just a big wasted space,
0:40:16 > 0:40:19so we're going to knock that all into the smaller bedroom,
0:40:19 > 0:40:22- so it will make it three decent bedrooms.- So that's upstairs?- Yeah.
0:40:22 > 0:40:24Downstairs, Ivan?
0:40:24 > 0:40:26- Matt? - LAUGHTER
0:40:26 > 0:40:27- Matt!- Downstairs loo?
0:40:27 > 0:40:30Yeah, we're going to put a toilet in downstairs, in the old coal house,
0:40:30 > 0:40:32and a new kitchen going in,
0:40:32 > 0:40:34then there's a little room where the backdoor is,
0:40:34 > 0:40:37between where the toilet's going to be and the kitchen,
0:40:37 > 0:40:40that'll be made into, like, a laundry, um, and then just
0:40:40 > 0:40:43all redecorated, new skirting boards everywhere, new doors.
0:40:43 > 0:40:45What budget are you going to give him to spend?
0:40:45 > 0:40:47- What's he got to spend?- Well...
0:40:47 > 0:40:50- Help him out, Ivan!- Well, yeah.
0:40:50 > 0:40:53I think they're going to be looking at between 15 and 20 grand,
0:40:53 > 0:40:55to get everything done, including the garden.
0:40:57 > 0:41:01'Well, that would be good going, given how much there is to do here.
0:41:01 > 0:41:04'And they are reckoning on a ten-week time schedule.
0:41:04 > 0:41:07'But there are two big issues in this house that need tackling.
0:41:07 > 0:41:08'First, the damp.'
0:41:10 > 0:41:13Well, on the back wall of the property,
0:41:13 > 0:41:17the overflow was left overflowing for a long period of time,
0:41:17 > 0:41:19so that's created a lot of damp.
0:41:19 > 0:41:21That's stopped now, so we'll probably have to take
0:41:21 > 0:41:25the plaster off, cos the plaster will be no good, re-plaster it,
0:41:25 > 0:41:29point up on the outside where the pointing's been worn away,
0:41:29 > 0:41:33um, just airing the property to get some of the damp out of it,
0:41:33 > 0:41:36cos it's been empty for a while, with no air going to it,
0:41:36 > 0:41:39so it's got a lot of damp in it from that, but the main thing is
0:41:39 > 0:41:42the back wall and where the overflow's been running down.
0:41:42 > 0:41:45So, tell us about, there's a bit of a red ash issue here, isn't there?
0:41:45 > 0:41:47It is quite a well-known area, around Stoke-on-Trent,
0:41:47 > 0:41:50for getting red ash, so I think we will get it tested,
0:41:50 > 0:41:54just to make sure, but by the looks of the floor at the moment,
0:41:54 > 0:41:56cos there's nothing on the floor...
0:41:56 > 0:41:58- DION LAUGHS: Yeah! - ..it does look OK.
0:41:58 > 0:42:01There's no blown areas, so, with a bit of luck, it should be OK here.
0:42:03 > 0:42:05'Having a red ash test is a good idea,
0:42:05 > 0:42:09'but fortunately, there doesn't seem to be too much of a concern here.
0:42:09 > 0:42:12'This is the second property that Ivan and John have bought together.
0:42:12 > 0:42:14'The first is rented out.
0:42:14 > 0:42:18'This one John thinks they should sell on. He's a local teacher
0:42:18 > 0:42:22'and Ivan was a headteacher until he retired in 2002,
0:42:22 > 0:42:26'so I was curious about what brought them to property in the first place.'
0:42:26 > 0:42:28I've always wanted to do this.
0:42:28 > 0:42:31You know, I did some studying and did some work at university,
0:42:31 > 0:42:34taught at university, did some consultancy work travelling around
0:42:34 > 0:42:39the country, but I decided that really wasn't what I wanted to do.
0:42:39 > 0:42:43This is what I wanted to do and, er, John had some money,
0:42:43 > 0:42:46I had some money, so we decided to get these two houses.
0:42:46 > 0:42:47- Joined forces? - Yeah, that's right, yeah.
0:42:47 > 0:42:50- Good luck, sir.- Thanks. - Hope it works out.- Yeah.
0:42:50 > 0:42:52Matt, good luck doing ALL the work yourself!
0:42:52 > 0:42:54- LAUGHTER - Thanks, thanks for that!
0:42:54 > 0:42:57Ivan and John are going to do well on this project.
0:42:57 > 0:43:00With their passion and Matt's expertise, I think
0:43:00 > 0:43:02they've got all the boxes ticked.
0:43:02 > 0:43:04But the main ones they have to tick are sorting that damp out
0:43:04 > 0:43:06and that red ash issue.
0:43:06 > 0:43:09Come back later on in the show and find out how they got on.
0:43:12 > 0:43:16So, we've seen how one buyer got on. What about the other two?
0:43:16 > 0:43:19Yeah, did they stick to their schedule and budget?
0:43:19 > 0:43:22- And what about their potential profit?- Let's take a look.
0:43:23 > 0:43:26Back to Tottenham in North London now,
0:43:26 > 0:43:28where I visited this two-bedroom top floor flat,
0:43:28 > 0:43:32which was offered at auction for a guide price of 140,000.
0:43:34 > 0:43:36Once I'd scaled the three flights of stairs
0:43:36 > 0:43:40and got inside the property, there actually wasn't that much to do.
0:43:40 > 0:43:43Perhaps an upgrade in the tired kitchen and bathroom suite
0:43:43 > 0:43:46and maybe an investment in some new flooring,
0:43:46 > 0:43:49but there was something worrying hiding in that legal pack.
0:43:49 > 0:43:52There's a clause in there that states these flats
0:43:52 > 0:43:54have to be owner occupied.
0:43:54 > 0:43:57Now, you can negotiate with the freeholder
0:43:57 > 0:43:59and, with their permission only,
0:43:59 > 0:44:01you might be allowed to rent it in the end.
0:44:03 > 0:44:05Now, that clause would need some investigating,
0:44:05 > 0:44:08but would it put off any buy-to-let investors at auction?
0:44:09 > 0:44:11Yours. 200.
0:44:11 > 0:44:16Apparently not. Chris and his friend Will paid 200,000 to do just that.
0:44:18 > 0:44:21They hadn't been deterred by that clause because, well,
0:44:21 > 0:44:25they hadn't spotted it in the legal pack, as Chris explains.
0:44:25 > 0:44:30I got a phone call from Will which just said, "We may have a problem."
0:44:30 > 0:44:33He'd come to look at another property in this development
0:44:33 > 0:44:36and he'd been told by the estate agent that they weren't
0:44:36 > 0:44:40legally allowed to rent them out, and so we thought that we may
0:44:40 > 0:44:43- just have bought somewhere that we couldn't then rent out.- Oh!
0:44:43 > 0:44:47'Uh-oh! Well, fortunately for the boys, it all worked out
0:44:47 > 0:44:50'and, following a consultation with the freeholder of the building,
0:44:50 > 0:44:53'they were assured they'd be able to rent the flat out.
0:44:53 > 0:44:56'But it wasn't just the stressful start that had me worried.
0:44:56 > 0:45:00'Chris and Will couldn't seem to agree on a plan for the renovations.
0:45:00 > 0:45:03'Chris favouring a complete top-to-bottom refurbishment
0:45:03 > 0:45:05'of the property and Will just wanting to do
0:45:05 > 0:45:07'more of a quick spruce up.'
0:45:07 > 0:45:09Seems like you haven't got a major plan?
0:45:09 > 0:45:11I think that's a fair conclusion.
0:45:11 > 0:45:15'Setting themselves a timescale of three to four months
0:45:15 > 0:45:19'and a budget of £10,000, would Will and Chris ever come to an agreement
0:45:19 > 0:45:21'of what to do with the place?
0:45:21 > 0:45:25'We returned 4½ months later to find out.'
0:45:31 > 0:45:35And, as you can see, well, the flat has been freshened up.
0:45:35 > 0:45:38The dated Artex ceiling has been skimmed,
0:45:38 > 0:45:41the walls have been repainted and new flooring has been laid,
0:45:41 > 0:45:44all of which really does brighten up the space.
0:45:44 > 0:45:46The kitchen has now been gutted
0:45:46 > 0:45:49and a brand-new one installed in its place.
0:45:49 > 0:45:52The white cupboards and stainless steel fittings work really well
0:45:52 > 0:45:56to reflect the light and open up the small space.
0:45:56 > 0:46:01The bathroom has also been refitted with this contemporary suite,
0:46:01 > 0:46:04again finished with light, fresh, neutral tones.
0:46:05 > 0:46:08Through into the bedrooms and, well, like the rest of the flat,
0:46:08 > 0:46:13it's been repainted, had new floors put in, as well as new
0:46:13 > 0:46:16electric heaters, which have been installed throughout the property.
0:46:16 > 0:46:19It looks like a complete refurbishment to me,
0:46:19 > 0:46:23so I'm guessing that Chris got his way in the end.
0:46:23 > 0:46:28When we started to look at the costings of doing things partway,
0:46:28 > 0:46:30um, we realised that actually,
0:46:30 > 0:46:34for the relatively small additional costs,
0:46:34 > 0:46:38it would be worth it for what we'd get as the end product,
0:46:38 > 0:46:42particularly if we then look at the options of renting or selling.
0:46:44 > 0:46:46I think that was a very wise decision by the boys.
0:46:46 > 0:46:50Obviously, renovation plans can go overboard at times,
0:46:50 > 0:46:53but striking a balance makes the most of the potential profit
0:46:53 > 0:46:57of your investment, and that is always key.
0:46:57 > 0:47:01And, in my opinion, that's exactly what Chris and Will have done here.
0:47:01 > 0:47:04Now, who was responsible for all the hard work, then?
0:47:04 > 0:47:08It was a friend of a friend, somebody that we felt
0:47:08 > 0:47:12we could trust, and, touch wood, that has worked out very well.
0:47:13 > 0:47:16Sounds like the boys really lucked out there, finding a good builder
0:47:16 > 0:47:21who brought the renovations in bang on schedule, in three months!
0:47:21 > 0:47:24But what about their original budget of 10,000?
0:47:25 > 0:47:27So, in terms of the budget, um,
0:47:27 > 0:47:30we still need to do the final numbers on that,
0:47:30 > 0:47:35but I think it will probably come out around £7,000-£8,000, um,
0:47:35 > 0:47:38which is an amount that we're happy with.
0:47:40 > 0:47:45Very happy, I'd imagine, as that's well under the original £10,000!
0:47:45 > 0:47:49Now, that brings the total spend on the property to around 208,000.
0:47:54 > 0:47:58So, will it be first time lucky for the property duo? We invited along
0:47:58 > 0:48:01two local estate agents to get their opinion?
0:48:02 > 0:48:05I think this is a very, very well presented flat.
0:48:05 > 0:48:06I think the layout is superb.
0:48:06 > 0:48:10The reason why - it gives any buyer a vision to do what they want.
0:48:10 > 0:48:12They can stamp their own authority.
0:48:12 > 0:48:14Well, there's a huge demand for a flat like this,
0:48:14 > 0:48:17given the fact the Haringey, Tottenham area's regenerating,
0:48:17 > 0:48:20so you've got a lot of people that are moving into this area,
0:48:20 > 0:48:21so the demand of this is vast
0:48:21 > 0:48:25and we have no problem in selling this type of property.
0:48:25 > 0:48:26I've had a good look round the flat.
0:48:26 > 0:48:30Um, yeah, it's been done up to a sensible standard. Looks good.
0:48:30 > 0:48:32I think this flat is suitable
0:48:32 > 0:48:34for either rental or resale. It really just depends
0:48:34 > 0:48:37on the vendor's position and what they're looking to achieve.
0:48:38 > 0:48:40Well, that all sounds good.
0:48:40 > 0:48:44There's high demand and the option of renting it or selling it.
0:48:44 > 0:48:48So let's get those valuations, starting with rent.
0:48:48 > 0:48:52I believe we can easily achieve around thirteen hundred pounds,
0:48:52 > 0:48:55£1,300 per calendar month for this property.
0:48:55 > 0:48:58We would look to rent this property for approximately
0:48:58 > 0:49:00£1,400 per calendar month.
0:49:00 > 0:49:04I think the rental value's slightly higher than I'd expected.
0:49:04 > 0:49:08Well, that would give the friends a yield of just over 8%.
0:49:08 > 0:49:10But what if they went for resale?
0:49:10 > 0:49:15What kind of rewards could they see for their 208,000 investment?
0:49:15 > 0:49:21I mean, I think we could sell this flat quite easily for around £280,000.
0:49:21 > 0:49:26We'd expect to resale this flat for around £270,000.
0:49:27 > 0:49:29Well, they've done well, haven't they?!
0:49:29 > 0:49:33That top figure of 280,000 would make the boys
0:49:33 > 0:49:38a tidy profit of £72,000, before taxes and fees.
0:49:38 > 0:49:41Chris and Will's original intention was to let out,
0:49:41 > 0:49:44but could they be swayed into selling now?
0:49:44 > 0:49:48So, I think we'll sit down in the next few days
0:49:48 > 0:49:51and come to a bit of a view on that.
0:49:51 > 0:49:54It may be that we advertise it for one or the other first
0:49:54 > 0:49:58and then see what happens with that before making a final decision.
0:49:59 > 0:50:04Since filming, the boys have put the flat on the market for £290,000.
0:50:04 > 0:50:08I'm just happy they finally agreed on something!
0:50:13 > 0:50:16'Let's head back to the market town of Newcastle-under-Lyme,
0:50:16 > 0:50:19'where I visited this three-bed end-of-terrace property.
0:50:19 > 0:50:21'On entering the house,
0:50:21 > 0:50:26'that intriguingly-low guide price of £54,000-plus started to make sense.'
0:50:26 > 0:50:30If rooms were tired, this isn't tired, this one's exhausted!
0:50:30 > 0:50:33# I'm sick and tired... #
0:50:33 > 0:50:36Yes, this place was in dire need of a renovation,
0:50:36 > 0:50:41each room as exhausted as the next and the separate bathroom and toilet,
0:50:41 > 0:50:43which might not be to everyone's taste.
0:50:43 > 0:50:44But that wasn't all.
0:50:44 > 0:50:48The house was suffering from damp and would need testing for red ash fill
0:50:48 > 0:50:52underneath the concrete floors, which causes them to bulge -
0:50:52 > 0:50:55a problem common in properties of this age in this area.
0:50:57 > 0:51:00So, a lengthy to-do list, but, with the reasonable guide price,
0:51:00 > 0:51:04in the right hands, this place could be a worthwhile investment.
0:51:06 > 0:51:07- GAVEL BANGS - Bought it, well done.
0:51:07 > 0:51:12'John, who bid £69,000 at auction, agreed and his business partner Ivan
0:51:12 > 0:51:15'and their builder Matt were going to sort it out.
0:51:15 > 0:51:17'Though it seemed this hadn't been
0:51:17 > 0:51:20'number one priority on Ivan's list to buy.'
0:51:20 > 0:51:23- Where was it on the list? That's the big question.- Um...
0:51:23 > 0:51:25- Down towards the bottom, mostly! - LAUGHTER
0:51:25 > 0:51:28It wasn't the one they told me they were going for!
0:51:28 > 0:51:32# Oh, baby, what you gonna do? #
0:51:32 > 0:51:35Well, this might not have been number one priority, but they plan
0:51:35 > 0:51:39to make it a number one property with a complete refurbishment.
0:51:39 > 0:51:41And it all sounded good.
0:51:41 > 0:51:44They'd be installing a new kitchen, moving the boiler downstairs,
0:51:44 > 0:51:48knocking through the dividing wall between the loo and the bathroom
0:51:48 > 0:51:50to create a large family-sized bathroom,
0:51:50 > 0:51:53and adding a WC to the ground floor.
0:51:53 > 0:51:56Not to mention addressing the damp situation
0:51:56 > 0:51:58and testing the floor for red ash.
0:51:58 > 0:52:01They definitely had their work cut out with this one
0:52:01 > 0:52:06and all for the budget of in between 15-20 grand and a ten-week timescale.
0:52:06 > 0:52:09Seven months later, we're back to have a look.
0:52:10 > 0:52:14# How you like me now? How you like me now?
0:52:14 > 0:52:17# How you like me now?
0:52:17 > 0:52:19# How you like me no-o-ow? #
0:52:21 > 0:52:24As you can see, this former shell of a property
0:52:24 > 0:52:27has seen a dramatic transformation.
0:52:27 > 0:52:30The reception room has been replastered, redecorated and
0:52:30 > 0:52:36refitted with new doors, new skirting boards and a neutral-coloured carpet.
0:52:36 > 0:52:39Through in the kitchen, the wall's been knocked through, pushed back and
0:52:39 > 0:52:44rebuilt, increasing the footprint and making this a generously-sized space
0:52:44 > 0:52:48with enough room to accommodate the boiler that was moved from upstairs.
0:52:48 > 0:52:50# How you like me now? #
0:52:50 > 0:52:53They've also added a new toilet in the old coal house
0:52:53 > 0:52:54and spruced up the utility area.
0:52:57 > 0:53:00Upstairs, as planned, the boys have knocked down the dividing wall
0:53:00 > 0:53:03between the loo and the bathroom to create
0:53:03 > 0:53:07a good-sized master bathroom with a neutral contemporary finish.
0:53:07 > 0:53:11They've also installed a new window in place of the previous two,
0:53:11 > 0:53:14which, as you can see, still needs some finishing touches,
0:53:14 > 0:53:16but really brightens up the space.
0:53:17 > 0:53:20The bedrooms have had the same treatment as the rest of the house.
0:53:20 > 0:53:24The dated wallpaper has gone, replaced with fresh plaster,
0:53:24 > 0:53:28new doors, skirting and carpets, all in a neutral colour.
0:53:28 > 0:53:32Perfect for the new occupier to make their mark.
0:53:32 > 0:53:35The garden has also had a bit of a makeover too.
0:53:35 > 0:53:37There's a lot of work been put into the garden,
0:53:37 > 0:53:40a lot of time and work that we didn't really expect.
0:53:40 > 0:53:43The level of the garden - instead of sloping down into the woods,
0:53:43 > 0:53:48we've raised it up maybe 60cm, new fencing, new drainage,
0:53:48 > 0:53:52new manhole, a concrete path has been taken up
0:53:52 > 0:53:54and this new pathway been put down.
0:53:54 > 0:53:57I'm very happy with the result - nice and private, good for a family.
0:53:59 > 0:54:03Making the most of a property inside and out is always a good idea.
0:54:03 > 0:54:04As well as work in the garden,
0:54:04 > 0:54:07they've also addressed that damp issue, which was caused
0:54:07 > 0:54:11by an old overflow pipe on the back wall of the property.
0:54:11 > 0:54:15Builder Matt started the job but unfortunately had to move onto
0:54:15 > 0:54:18another project, but Ivan's nephew Herman, who's only recently
0:54:18 > 0:54:22moved here from Holland, stepped up and has clearly been very busy.
0:54:22 > 0:54:26The kitchen, we're really pleased with the kitchen. I think that's
0:54:26 > 0:54:30- the favourite part of the house, isn't it?- For sure, yes.- Definitely.
0:54:30 > 0:54:32A wall's been taken out in the kitchen,
0:54:32 > 0:54:34all the plaster right back to the brick,
0:54:34 > 0:54:38all thanks to Herman. Herman's done most of the work in there.
0:54:38 > 0:54:40- You have.- Thank you. - LAUGHTER
0:54:41 > 0:54:44Good job, Herman. But I do remember plans
0:54:44 > 0:54:47to knock down another wall upstairs to open up the smallest bedroom?
0:54:49 > 0:54:52Initially, we were going to take walls down, put walls in,
0:54:52 > 0:54:54and a neighbour, just over the road there,
0:54:54 > 0:54:58he'd bought his house at a similar time
0:54:58 > 0:55:02and he hadn't made those changes and it looked really good, didn't it?
0:55:02 > 0:55:04- Yes.- He had cupboards and wardrobes in those spaces.
0:55:04 > 0:55:09- So we didn't need to do it, really, to make extra work.- Exactly.
0:55:09 > 0:55:11I think the layout's fine upstairs.
0:55:11 > 0:55:14The big change up there is the bathroom.
0:55:14 > 0:55:17- Yes.- The toilet and bathroom separate - now it's all together.
0:55:18 > 0:55:21Job's a good 'un! As is their budget.
0:55:21 > 0:55:26Aiming for between 15 and 20 grand, they came in at £17,000,
0:55:26 > 0:55:30taking their total spend on this renovation to around 86,000.
0:55:30 > 0:55:34But what about their original timescale of 2-2½ months?
0:55:37 > 0:55:40The work's taken seven months, I think, altogether, yeah?
0:55:40 > 0:55:44I mean, the big delay was Matt had to go
0:55:44 > 0:55:47and just rescheduling all the tradespeople again,
0:55:47 > 0:55:51but also, I think we've taken our time with it and, um,
0:55:51 > 0:55:53we like to do a perfect job.
0:55:55 > 0:55:58So, 4½ months over their original timescale,
0:55:58 > 0:56:00but the place is looking great!
0:56:02 > 0:56:04But what will two local estate agents think?
0:56:04 > 0:56:07Let's start with the one who saw it first.
0:56:09 > 0:56:11The property's been done to a good standard
0:56:11 > 0:56:12and the property's been kept
0:56:12 > 0:56:14very neutral throughout,
0:56:14 > 0:56:16but with a good finish to the kitchen and bathrooms.
0:56:16 > 0:56:19Upstairs has been kept as a good-sized three-bedroom property,
0:56:19 > 0:56:22with the addition of the family bathroom, which is going to
0:56:22 > 0:56:25be beneficial for the type of buyer interested in the property.
0:56:25 > 0:56:29I think the main selling points of this property are the location,
0:56:29 > 0:56:32also the renovation has been done well, and the bathroom
0:56:32 > 0:56:35upstairs and downstairs would appeal to young families.
0:56:35 > 0:56:38I think the demand for this property in this area is good.
0:56:38 > 0:56:40They would have no problem either selling or renting this property.
0:56:40 > 0:56:43Well, that's all very positive.
0:56:43 > 0:56:46Ivan's business partner John thought this should be sold on.
0:56:46 > 0:56:50So what return could they get on their 86 grand investment?
0:56:50 > 0:56:52Let's start with the sales.
0:56:52 > 0:56:55I would look to place the property up for sale
0:56:55 > 0:56:57for in the region of £105,000.
0:56:57 > 0:57:03On the sales market, I would look to achieve £105,000-£110,000.
0:57:03 > 0:57:07I'd be happy with 110. Judging on what I know of the area,
0:57:07 > 0:57:10and somebody else that had theirs valued,
0:57:10 > 0:57:14I think more 115,000, but I'd be happy with 110.
0:57:16 > 0:57:18That top figure of 110 grand would
0:57:18 > 0:57:23mean a potential pre-tax profit of £24,000, which isn't bad at all.
0:57:23 > 0:57:26But let's get those rental figures, shall we?
0:57:28 > 0:57:31I'd look to place the property on the rental market
0:57:31 > 0:57:35for somewhere in the region of £575 per calendar month.
0:57:35 > 0:57:39On the rental market, I would look to achieve £550 per calendar month.
0:57:39 > 0:57:42I wouldn't consider renting, but if I was going to rent,
0:57:42 > 0:57:45I think I'd want more than 575 a calendar month.
0:57:47 > 0:57:50So, that top valuation would give them a yield of 8%,
0:57:50 > 0:57:52which is not attracting Ivan.
0:57:52 > 0:57:55So, what's next for Ivan and Herman?
0:57:55 > 0:57:56As soon as this one's sold,
0:57:56 > 0:57:59there'll be another one that Herman's going to be working on.
0:57:59 > 0:58:02- Isn't that right, Herman? - I'm going to do my best, yes!- Yeah.
0:58:04 > 0:58:07Well, that's all we have time for today.
0:58:07 > 0:58:10But more and more properties are being sold up and down the country.
0:58:10 > 0:58:12Yeah, and we'll show you a few more here next time
0:58:12 > 0:58:15on Homes Under The Hammer. ALL: Goodbye.