0:00:02 > 0:00:03Welcome to the show!
0:00:03 > 0:00:05Bricks and mortar can be the best investment out there,
0:00:05 > 0:00:07but only if you get it right.
0:00:07 > 0:00:10Yes, and if you're looking for good value and choice then,
0:00:10 > 0:00:13in my opinion, you should head down to your local property auction.
0:00:13 > 0:00:16Yes, make sure you know what you're getting into
0:00:16 > 0:00:18when you buy your home under the hammer.
0:00:44 > 0:00:46If you're dipping your toe into property development for the
0:00:46 > 0:00:49first time, make sure you don't bite off more than you can chew.
0:00:49 > 0:00:50Yes, that's true, Lucy.
0:00:50 > 0:00:52Lofty ambitions are all well and good but you
0:00:52 > 0:00:55do need to keep your feet well and truly planted on the ground.
0:00:55 > 0:00:57Yes, let's find out what our three sets of buyers had to
0:00:57 > 0:00:59tackle on today's programme.
0:01:00 > 0:01:03Coming up, it sounds like this couple have exciting
0:01:03 > 0:01:05plans for a house in Croydon.
0:01:05 > 0:01:08I like things contemporary, I like a pop of colour.
0:01:08 > 0:01:10We're not doing boring.
0:01:10 > 0:01:13At this house in Coventry, I'll be telling you how to add value
0:01:13 > 0:01:15and make friends in the process.
0:01:15 > 0:01:18You take that tree down, you've got a lot of light in this back garden.
0:01:18 > 0:01:20Your neighbours will love you.
0:01:20 > 0:01:23And the sunshine is bringing out the colourful best in this
0:01:23 > 0:01:25house in Nottinghamshire.
0:01:25 > 0:01:30Wow. Well, wow, double wow. How lovely to see that still in place.
0:01:31 > 0:01:34All these properties have been sold at auction.
0:01:34 > 0:01:36We'll find out who bought them and what they paid for them
0:01:36 > 0:01:38when they went under the hammer.
0:01:38 > 0:01:39Yours at the front.
0:01:44 > 0:01:48Addiscombe, in the London borough of Croydon, once housed a military
0:01:48 > 0:01:52academy used to train officers on the East India Company regiments.
0:01:52 > 0:01:54150 years on and travel
0:01:54 > 0:01:57and education are still key to Addiscombe's attraction, with
0:01:57 > 0:01:59a sought-after school
0:01:59 > 0:02:02and excellent transport links via the Croydon tram link.
0:02:04 > 0:02:07So up for auction was a three-bed end-of-terrace with a guide
0:02:07 > 0:02:09price of £295,000.
0:02:10 > 0:02:12So, sounds fairly standard,
0:02:12 > 0:02:17but what is interesting about this property is a little line under the title "potential",
0:02:17 > 0:02:23where it says "Suitable for a loft/mansard conversion and extension."
0:02:23 > 0:02:28Now potential like that can certainly be very interesting indeed.
0:02:28 > 0:02:29Time to go in and explore.
0:02:34 > 0:02:37Right, so it's a little bit shabby on the outside
0:02:37 > 0:02:40and very dated on the inside,
0:02:40 > 0:02:42but I'd never let that put you off because obviously whoever
0:02:42 > 0:02:44takes this on is going to come in here
0:02:44 > 0:02:47and splosh some paint around - I'm not keen on the yellow.
0:02:47 > 0:02:51Update the carpets, you know, it is dated but it can get only better.
0:02:51 > 0:02:56So I'm thinking already it's a great space, a really big lounge,
0:02:56 > 0:02:59wow, that is super. Brilliant for a family,
0:02:59 > 0:03:02although the double glazing looks like it may need to be replaced.
0:03:02 > 0:03:06Through here, bit of a galley kitchen so it looks a bit crammed in
0:03:06 > 0:03:10and there is so much stuff in this house talking about being crammed in.
0:03:10 > 0:03:13Whoever takes this property on is going to have to get a skip
0:03:13 > 0:03:16outside and clear it out because there's lots of stuff in here.
0:03:16 > 0:03:20And right at the back, again, a massive room.
0:03:20 > 0:03:22So this is the second reception room.
0:03:22 > 0:03:26You could have this as a really nice dining area, you could go back
0:03:26 > 0:03:30and think about knocking this wall down here to have the kitchen
0:03:30 > 0:03:32and dining room as one big family space.
0:03:32 > 0:03:36I always think that really works well, it's so much more sociable.
0:03:36 > 0:03:39Come over here, this ain't so great. Now look at this.
0:03:39 > 0:03:43It's a little plastic, corrugated roof going on there,
0:03:43 > 0:03:46more of a lean-to. You've got some doors leading out to the garden.
0:03:46 > 0:03:48So you've got a couple of options.
0:03:48 > 0:03:51You could just tear it down or you could think about working
0:03:51 > 0:03:54within permitted development and creating a little extension
0:03:54 > 0:03:56out there, because I think that would be nice.
0:03:56 > 0:04:01So a lot to do, as you can see, look - very dated, very messy,
0:04:01 > 0:04:03you need to put a lot into this house.
0:04:03 > 0:04:06But it's got space and it would be ideal for a family.
0:04:07 > 0:04:11Now that banister on the stairs could be dangerous for young
0:04:11 > 0:04:15children due to the large gaps, so that'll need replacing.
0:04:15 > 0:04:18But after that the news gets better with three good sized
0:04:18 > 0:04:20bedrooms up the stairs.
0:04:20 > 0:04:23Two doubles and a single,
0:04:23 > 0:04:27along with a family bathroom.
0:04:27 > 0:04:31It all feels very spacious, at least, it could feel spacious.
0:04:32 > 0:04:36MUSIC: Inside by Stillskin
0:04:42 > 0:04:45Yes, I think a call to a local skip hire is in order.
0:04:45 > 0:04:48There is so much clutter here that's going to have to be cleared
0:04:48 > 0:04:51out before you can do any work.
0:04:51 > 0:04:54And if downstairs needs clearing, and upstairs needs to be cleared
0:04:54 > 0:04:58too, you've probably guessed the back garden needs clearing as well.
0:05:00 > 0:05:05Still, once all that's done, there's no doubt that it is a good size.
0:05:05 > 0:05:07So let's go and have a look.
0:05:07 > 0:05:09Now, as I said earlier, the catalogue
0:05:09 > 0:05:12hinted at the possibility of going up into the roof.
0:05:12 > 0:05:16So if you did want to do that there's one thing you need to
0:05:16 > 0:05:19decide. What type of conversion do you go for?
0:05:19 > 0:05:21Now the three most common are,
0:05:21 > 0:05:23you've got the roof window conversion where you just put
0:05:23 > 0:05:25a window in line with the roof,
0:05:25 > 0:05:29but you will need high ceilings in the attic space for that.
0:05:29 > 0:05:32You've then got the dormer roof conversion where you add a window
0:05:32 > 0:05:37which is also built out on the roof, so you create a bit of extra space.
0:05:37 > 0:05:40And then you've got, well, like our neighbours,
0:05:40 > 0:05:44the mansard conversion, which lifts the whole side of the roof,
0:05:44 > 0:05:47creating so much more space.
0:05:47 > 0:05:50But much more disturbance outside, which means more regulations
0:05:50 > 0:05:53and of course, neighbours to keep on board.
0:05:54 > 0:05:58Now there are examples of each type of conversion all along the street.
0:05:58 > 0:06:01So what you go for really depends on your budget
0:06:01 > 0:06:04and the value it could potentially add to the property.
0:06:04 > 0:06:08For a bit of expert advice we've asked along a local estate
0:06:08 > 0:06:11agent to see if he thinks a conversion is worth the investment.
0:06:13 > 0:06:16In my opinion, when doing a loft conversion it's always better,
0:06:16 > 0:06:20where possible, to do a mansard roof or a proper dormer extension,
0:06:20 > 0:06:23and that way you can definitely get two bedrooms rather than just
0:06:23 > 0:06:24maybe one big loft room.
0:06:24 > 0:06:27If this was my property I also think I would do a rear extension
0:06:27 > 0:06:30and maybe open up the kitchen to the dining room
0:06:30 > 0:06:32and make that a nice big open family space.
0:06:32 > 0:06:36Well, I couldn't agree more, that old lean-to has seen better days.
0:06:36 > 0:06:39But if completed, what would a new extension out the back
0:06:39 > 0:06:41add to the value of the property?
0:06:43 > 0:06:45The property just being left as it is would
0:06:45 > 0:06:48sell for approximately £400,000.
0:06:48 > 0:06:50Doing the rear extension and refurbishing to a good standard,
0:06:50 > 0:06:53this property would sell in excess of £450,000.
0:06:54 > 0:06:56And if you were to add the new extension
0:06:56 > 0:06:58and convert the attic space?
0:06:59 > 0:07:02Doing a loft extension with a proper dormer
0:07:02 > 0:07:05conversion at the back, I think you would get two bedrooms
0:07:05 > 0:07:09and therefore the property would sell for approximately £500,000.
0:07:09 > 0:07:12With a lot to be done here this certainly cries out as a great
0:07:12 > 0:07:14investment opportunity.
0:07:14 > 0:07:19And with the catalogue also pointing out that loft conversion potential,
0:07:19 > 0:07:23surely this must have been a popular lot when it went up for auction?
0:07:23 > 0:07:24Let's find out.
0:07:27 > 0:07:31So end-of-terrace house here, does require a bit of TLC this one.
0:07:31 > 0:07:35What should we say for it? Shall we start at 300, see where we go?
0:07:35 > 0:07:37We will, you were first.
0:07:37 > 0:07:38300. What are you saying?
0:07:38 > 0:07:41You are 305? Thank you, sir, 305.
0:07:41 > 0:07:43310. 315.
0:07:43 > 0:07:46320. 325.
0:07:46 > 0:07:48330. 335.
0:07:48 > 0:07:50No.
0:07:50 > 0:07:52Absolutely sure? Come back to you in a minute.
0:07:52 > 0:07:54Yours at the moment at £330,000.
0:07:54 > 0:07:56335 anywhere else?
0:07:58 > 0:08:01Take a couple of thousand pounds if it helps you or anyone else,
0:08:01 > 0:08:04otherwise we're here at the front at £330,000.
0:08:04 > 0:08:07And we will sell unless we can do better.
0:08:07 > 0:08:11At £330,000 then for the first.
0:08:11 > 0:08:14330 for the second.
0:08:14 > 0:08:16Third and final time at 330.
0:08:16 > 0:08:17GAVEL BANGS
0:08:17 > 0:08:20Yours at the front. Bidder 946. Thank you very much.
0:08:23 > 0:08:27Now that cheery bidder was Chris, who, along with wife Pauline,
0:08:27 > 0:08:31bought the property with a bid of 330,000, and if they look
0:08:31 > 0:08:35familiar to you, well that's because they've been on the show before.
0:08:35 > 0:08:38They're full-time property developers who gave up City careers
0:08:38 > 0:08:41in finance and bought a mid-terrace house in Croydon,
0:08:41 > 0:08:47where Pauline used her creative flair to make it very nice indeed.
0:08:47 > 0:08:50- Guys, congratulations, lovely to see you again.- Nice to see you.
0:08:50 > 0:08:51Pauline and Chris.
0:08:51 > 0:08:53Now, you've been very busy,
0:08:53 > 0:08:56this is the second time we've seen you on the show.
0:08:56 > 0:08:59But I noticed at this auction there weren't that many people
0:08:59 > 0:09:01bidding for this property, were there?
0:09:01 > 0:09:04No, I think there was people living here up until recently.
0:09:04 > 0:09:07Hence why there wasn't that many bidders, I think.
0:09:07 > 0:09:09So do you think that put people off that they couldn't
0:09:09 > 0:09:12get in to see the property prior to it going under the hammer?
0:09:12 > 0:09:15Yes, I think so, massively, I mean not many people buy them blind.
0:09:15 > 0:09:18So tell me, Chris, why did you want this?
0:09:18 > 0:09:21Um, this one, it's a nice house, nice size,
0:09:21 > 0:09:24and the price was right on the day which is the important part.
0:09:24 > 0:09:26Yes, I really think you're right.
0:09:26 > 0:09:30It's a really lovely spacious house and, you know, I can imagine with
0:09:30 > 0:09:34a bit of your magic sprinkled on the top it's going to be fantastic.
0:09:34 > 0:09:37So I'm really intrigued to find out, what are you going to do here?
0:09:37 > 0:09:41Well, the extension thing they've got at the minute,
0:09:41 > 0:09:46- that'll probably get knocked down and rebuilt.- Hold on a minute, what do you mean extension thing?
0:09:46 > 0:09:49- Not quite sure what it is...- Sort of plastic roof.
0:09:49 > 0:09:51Yes, it's that corrugated plastic that
0:09:51 > 0:09:54- I see quite often on this programme. - That's got to go.
0:09:54 > 0:09:57And that might go deeper cos we're allowed to go three metres
0:09:57 > 0:09:59and I think it's about a metre and a half at the minute,
0:09:59 > 0:10:01so we might go further into the garden with that.
0:10:01 > 0:10:04So that might become the kitchen's dining space.
0:10:04 > 0:10:07That wall will probably come down and make a nice kitchen/diner
0:10:07 > 0:10:09so you've got a decent sized kitchen.
0:10:09 > 0:10:11And everything else you just tidy up really.
0:10:12 > 0:10:15MUSIC: Kiss This Thing Goodbye by Del Amitri
0:10:20 > 0:10:22So we can kiss goodbye to that old lean-to
0:10:22 > 0:10:27and look forward to saying a big hello to a nice new extension.
0:10:27 > 0:10:30But what about the attic? Will there be some new rooms up there?
0:10:33 > 0:10:34No.
0:10:34 > 0:10:35Now that's interesting,
0:10:35 > 0:10:39is it because funds won't allow or do you not think it needs it?
0:10:39 > 0:10:43- It's not so much that funds won't allow, it's more the time factor. - Planning permission.
0:10:43 > 0:10:46It'd extend the project by a good sort of two, three months.
0:10:46 > 0:10:50And, well, we're hoping to be in and out and on to the next one.
0:10:52 > 0:10:55One of the ways to try and make a profit flipping property is
0:10:55 > 0:10:58make sure you have a very quick...
0:10:58 > 0:11:01# Turn around... #
0:11:01 > 0:11:03So I can see their logic,
0:11:03 > 0:11:06and having experienced delays with solicitors
0:11:06 > 0:11:08when selling their previous properties,
0:11:08 > 0:11:11Chris and Pauline have come up with a plan,
0:11:11 > 0:11:16so that they can get an even tighter, um, what's the word? Um.
0:11:16 > 0:11:18# Turn around... #
0:11:18 > 0:11:20Thanks, Bonnie.
0:11:20 > 0:11:23Well, as soon as we're ready to sell the house we're going to get
0:11:23 > 0:11:26all the searches done then we can just pass them to the buyer
0:11:26 > 0:11:28and hopefully that saves us a few weeks.
0:11:28 > 0:11:31Then they're not waiting to do them from when they've put the
0:11:31 > 0:11:35offer in sort of one or two weeks after we put the house up for sale.
0:11:35 > 0:11:37With the last one, it pretty much took longer to sell it than
0:11:37 > 0:11:40it did to renovate it.
0:11:40 > 0:11:43So that really is a really good tip to anybody looking to sell
0:11:43 > 0:11:45- really, isn't it? - Potentially if it works, yes.
0:11:45 > 0:11:48So this is the first time you're going to be doing that to see
0:11:48 > 0:11:51if that really does speed things along.
0:11:51 > 0:11:53Well, they've thought out their plan.
0:11:53 > 0:11:58They've given themselves a budget of between 20 and 30,000, a timescale
0:11:58 > 0:12:03of three months to get it done, and then they have their secret weapon.
0:12:03 > 0:12:05Pauline has been taking interior design classes
0:12:05 > 0:12:08and she has got one or two ideas.
0:12:09 > 0:12:11I like things contemporary and understated,
0:12:11 > 0:12:17but sometimes I like a bit of pop of colour, but Chris reins me in.
0:12:17 > 0:12:20He reminds me it's not our house. "Stop doing that!"
0:12:20 > 0:12:24My purple toilet in my house is fine but not for a project.
0:12:24 > 0:12:28I think we need to see a little bit of Pauline's personality.
0:12:28 > 0:12:29It's difficult to get it right
0:12:29 > 0:12:32because we want it to be interesting enough
0:12:32 > 0:12:37so it's got a wow factor but boring enough that anyone can move into it.
0:12:37 > 0:12:41We're not doing boring, can I just tell you that now, we're not doing boring.
0:12:41 > 0:12:43I'm working on the bi-folding doors.
0:12:43 > 0:12:46You do have a fabulous garden here and I'm all for letting the light
0:12:46 > 0:12:50come flooding through and having that sort of outside garden room.
0:12:50 > 0:12:53- What are your reasons for not going along that route?- Cost.
0:12:53 > 0:12:55Oh, money, cost.
0:12:55 > 0:12:56It's always about money.
0:12:56 > 0:12:59Which of course you're going to benefit from at the end of the day.
0:12:59 > 0:13:00I have my eye on a couple of things.
0:13:00 > 0:13:06- So, what have you got your eye on? - Oh, another handbag or something.
0:13:06 > 0:13:08- I thought you meant for the property.- No, for me.
0:13:08 > 0:13:10A payment in kind.
0:13:10 > 0:13:12It's like, "Oh, I've worked really hard
0:13:12 > 0:13:14"I should get a handbag or something."
0:13:14 > 0:13:17Guys, I'm so excited to see the outcome.
0:13:17 > 0:13:19Will you be extending, won't you?
0:13:19 > 0:13:21Will I see those French doors, won't I?
0:13:21 > 0:13:24I know I won't be seeing any magnolia, that's for sure.
0:13:24 > 0:13:26It's been lovely seeing you again
0:13:26 > 0:13:30and I look forward to seeing the end result here. Pauline, thank you.
0:13:30 > 0:13:33- Great to see you again. - Chris. Good luck. - Thank you.
0:13:33 > 0:13:36Ha-ha, so, Chris and Pauline are back for more.
0:13:36 > 0:13:39Will we return to see the extension
0:13:39 > 0:13:41and the lovely bi-fold doors at the back here?
0:13:41 > 0:13:45Or will Chris keep a tight rein on the budget? And Pauline!
0:13:45 > 0:13:49Join us later in the programme and you can find out how they get on.
0:13:54 > 0:13:55Welcome to Coventry,
0:13:55 > 0:14:00the birthplace of such celebrities as Sir Nigel Hawthorne, Pete
0:14:00 > 0:14:04Waterman and the legend has it, St George of dragon slaying fame.
0:14:05 > 0:14:10MUSIC: Dragon Attack by Queen
0:14:12 > 0:14:15Thankfully, there haven't been any dragons seen here in some time,
0:14:15 > 0:14:19so it shouldn't affect your insurance policy.
0:14:19 > 0:14:23The property I'm here to see is not far from the city centre, Warwick
0:14:23 > 0:14:27University and also Coventry City's old football ground,
0:14:27 > 0:14:31Highfield Road, which does hold some fond memories for me.
0:14:31 > 0:14:32Thanks for your support.
0:14:32 > 0:14:34Anyway, here it is, it's a two-bed,
0:14:34 > 0:14:37mid-terrace house with a guide price of £75,000.
0:14:37 > 0:14:39I'm going to take a look.
0:14:47 > 0:14:53OK, we are straight into what actually looks like a bit of a building site.
0:14:53 > 0:14:55There's nothing in here at all.
0:14:55 > 0:14:58This would be the front room, it is quite small.
0:14:58 > 0:15:03And there would have been a chimney breast just here
0:15:03 > 0:15:06but somebody's actually taken it out, on the angle as well,
0:15:06 > 0:15:09so probably created a bit more space.
0:15:09 > 0:15:12It does look incredibly dodgy over there,
0:15:12 > 0:15:15there's a few holes as well in the floorboard.
0:15:15 > 0:15:20So I'm going to go down what would be, or should be, a wall just
0:15:20 > 0:15:23here down the hallway to the next room.
0:15:26 > 0:15:28Into the second reception room
0:15:28 > 0:15:30and it's pretty much the same in here as well.
0:15:30 > 0:15:33It's actually been stripped back to the bare bones.
0:15:33 > 0:15:36There's polystyrene tiles which would have to come down,
0:15:36 > 0:15:38huge fire hazard.
0:15:38 > 0:15:41And again the chimney breast has been taken out here,
0:15:41 > 0:15:43again it would have been on the angle,
0:15:43 > 0:15:46so they're probably just trying to get as much floor space as possible.
0:15:46 > 0:15:50But judging by up there, it doesn't look very safe at all,
0:15:50 > 0:15:54so I'm going to move away into the middle of the room.
0:15:54 > 0:15:57This house needs a re-wire, it needs central heating,
0:15:57 > 0:16:00it just needs the lot.
0:16:00 > 0:16:03Well, it looks like someone has made a start on stripping this
0:16:03 > 0:16:07place out already. But there's still a lot of work to do.
0:16:07 > 0:16:11Let's head through to the kitchen to see if it gets any better.
0:16:13 > 0:16:15And no it doesn't get any better in the kitchen either.
0:16:15 > 0:16:18It's very small, quite pokey.
0:16:18 > 0:16:23You've got the stairs going up to the bedrooms off the kitchen.
0:16:23 > 0:16:26Your bathroom is just through there at the end of the property.
0:16:26 > 0:16:30What I have noticed is there's brand-new windows through the whole
0:16:30 > 0:16:34of downstairs and that's a bit of a bonus when it comes to your budget.
0:16:34 > 0:16:37This place needs time and it needs effort.
0:16:37 > 0:16:41It also gives somebody a blank canvas to really put their stamp on.
0:16:44 > 0:16:46# It's just a drop in the ocean #
0:16:46 > 0:16:50OK, so those windows aren't much to hold on to, but I'm trying to
0:16:50 > 0:16:54be positive because upstairs it's not much better.
0:16:54 > 0:16:56There is a master bedroom at the front of the property
0:16:56 > 0:16:58and a smaller one at the rear.
0:16:58 > 0:17:02But in all honesty, neither of them are particularly spacious
0:17:02 > 0:17:04and both are in a state of disrepair.
0:17:04 > 0:17:08Perhaps the back garden can offer some inspiration.
0:17:10 > 0:17:13So out in the back garden it is only small
0:17:13 > 0:17:16and it's a bit of a mess at the moment.
0:17:16 > 0:17:19But if you were to get rid of all of this you'd have a nice back
0:17:19 > 0:17:22garden area without any fuss.
0:17:22 > 0:17:29The big question is that tree just there and what you do with it?
0:17:29 > 0:17:33My advice would be to get a tree surgeon over to remove it
0:17:33 > 0:17:35safely and quickly.
0:17:35 > 0:17:38You take that tree down, you've got a lot of light in this back
0:17:38 > 0:17:40garden, moisture's back in the ground.
0:17:40 > 0:17:44Most important thing, your neighbours will love you.
0:17:44 > 0:17:48And perhaps clearing some space here could pave the way for a single
0:17:48 > 0:17:51or double extension, giving the house some much needed extra room.
0:17:54 > 0:17:57MUSIC: More, More, More by Bananarama
0:18:03 > 0:18:06Well, whether more space should be added to this property will
0:18:06 > 0:18:08really come down to the numbers.
0:18:08 > 0:18:10The guide is 75 grand,
0:18:10 > 0:18:13but what does a local estate agent think of its potential?
0:18:16 > 0:18:18Chapelfield is a popular area.
0:18:18 > 0:18:21It's located quite close to Earlsden, which is
0:18:21 > 0:18:23an immensely popular and very prosperous area.
0:18:23 > 0:18:26It tends to be popular with young families, there's a lot
0:18:26 > 0:18:31of good nursery schools and there's a very nice park just up the road.
0:18:31 > 0:18:34So the houses in this area are in demand,
0:18:34 > 0:18:37but this one needs so much work to get it up to standard.
0:18:37 > 0:18:39How much does he think it will cost?
0:18:41 > 0:18:44Without overspending I still think we're going to be
0:18:44 > 0:18:49looking in the region of £25,000, possibly higher.
0:18:49 > 0:18:51Whoever buys this property is really going to have their work cut
0:18:51 > 0:18:53out for them.
0:18:53 > 0:18:56So, with a guide price of £75,000 what could the house
0:18:56 > 0:18:59sell for once the renovation is complete?
0:18:59 > 0:19:02I'd like to think in the current market that this house could
0:19:02 > 0:19:05achieve £130,000.
0:19:05 > 0:19:07And if the house were put on the rental market?
0:19:07 > 0:19:10Once renovated I think this property could
0:19:10 > 0:19:13achieve in the region of £700 per calendar month.
0:19:14 > 0:19:17It's just a two-bed terrace. Or is it?
0:19:17 > 0:19:19Could you get an extension on it? Maybe.
0:19:19 > 0:19:23But what I will say, this has been stripped back to the bare bones.
0:19:23 > 0:19:26You're starting from the very beginning,
0:19:26 > 0:19:28so I would want to get this to as close to the guide
0:19:28 > 0:19:31price as possible and save as much money in that budget
0:19:31 > 0:19:34so you can spend it on turning this house around.
0:19:34 > 0:19:36Let's see who wanted to get their hands dirty
0:19:36 > 0:19:37when it went under the hammer.
0:19:38 > 0:19:42So, lot 206, a two-bedroom, mid-terraced house,
0:19:42 > 0:19:47needs a little bit of work doing to it. 80,000 anywhere?
0:19:47 > 0:19:50Turn it round the other way, 60,000?
0:19:50 > 0:19:5260,000.
0:19:52 > 0:19:5362, 64,
0:19:53 > 0:19:5466.
0:19:54 > 0:19:5768. 70,000.
0:19:57 > 0:19:58It may have been late in the day,
0:19:58 > 0:20:01but once the bids started, they came in thick and fast.
0:20:02 > 0:20:06We rejoin the bidding at £97,000.
0:20:06 > 0:20:0897, 98.
0:20:08 > 0:20:1199. Get..99. 100,000, sir?
0:20:11 > 0:20:1599,000 on the phone, against the three other phones,
0:20:15 > 0:20:17against you in the aisle and against you at the back of the room.
0:20:17 > 0:20:2199,000. I'm selling it. At 100, he's rounded off.
0:20:21 > 0:20:23101. On his first bid. No.
0:20:23 > 0:20:26100,000 on his first bid, gentleman at the back of the room.
0:20:26 > 0:20:29At 100,000 to the gentleman at the back of the room.
0:20:29 > 0:20:34100,000 for the first, 100,000 for the second,
0:20:34 > 0:20:37100,000 for the third and 101.
0:20:37 > 0:20:38102.
0:20:38 > 0:20:42Looking for 103, 102 for the first, 102 for the second,
0:20:42 > 0:20:46102 for the third and final time.
0:20:46 > 0:20:47GAVEL BANGS
0:20:47 > 0:20:49Sold.
0:20:49 > 0:20:52And that successful bid of £102,000 came from Bali.
0:20:55 > 0:20:58Property developer Bali is local to Coventry
0:20:58 > 0:21:00and already has a small rental portfolio.
0:21:01 > 0:21:04He also has a regular team of builders and they were
0:21:04 > 0:21:08the ones who took this place back to brick in just a couple of days.
0:21:08 > 0:21:10But with all that work required,
0:21:10 > 0:21:13why so keen to spend 27 grand over the guide price?
0:21:15 > 0:21:19- Bali, nice to meet you.- Hello, how are you?- Congratulations, pal.
0:21:19 > 0:21:21Let's start from the beginning, the auction.
0:21:21 > 0:21:23How did it go and the price you paid and...
0:21:23 > 0:21:25Yes, the price I paid wasn't great.
0:21:25 > 0:21:28Not what I really wanted, but, my limit was 100 with
0:21:28 > 0:21:32an allowance of three grand if I was really really wanting it.
0:21:32 > 0:21:35So you must have been able to see the potential.
0:21:35 > 0:21:38Yes, and thought that there was...It's a two-up, two-down
0:21:38 > 0:21:42and there's a possibility of maybe getting four lettable rooms out of it.
0:21:42 > 0:21:47MUSIC: From Out Of Nowhere by Faith No More
0:21:51 > 0:21:55Four bedrooms in here? I didn't see that coming.
0:21:55 > 0:21:58Still, the agent did say that this area is a great
0:21:58 > 0:22:01location for students looking for accommodation.
0:22:01 > 0:22:04So maybe registering it as a House in Multiple Occupancy,
0:22:04 > 0:22:06or HMO, is not such a left-field idea.
0:22:08 > 0:22:13Bali certainly has the experience in managing those type of properties.
0:22:13 > 0:22:16So, how does he intend to get four bedrooms in this house?
0:22:18 > 0:22:20We will have, well, there's two original bedrooms upstairs.
0:22:20 > 0:22:24The front one is larger so there'll be an en suite room added there.
0:22:24 > 0:22:28The back one there'll be an extension made for the en suite.
0:22:28 > 0:22:33Downstairs there'll be a room at the front, which is a bit smaller,
0:22:33 > 0:22:37but probably will get an additional shower room under the stairs with a toilet.
0:22:37 > 0:22:40Then the back room, again there will probably be a three metre
0:22:40 > 0:22:44extension for an en suite room there.
0:22:44 > 0:22:48And why an HMO and not a family house?
0:22:49 > 0:22:53Simply, I mean, if it was for resale family would have been the way to go.
0:22:53 > 0:22:56- Do it up as it was, the original shell.- Which is the easy way.
0:22:56 > 0:23:00Which would have been the easy way, yes, would have been a lot more easier.
0:23:00 > 0:23:04But returns-wise, it's definitely got to be HMO.
0:23:05 > 0:23:07Returns-wise, in this area,
0:23:07 > 0:23:13you'd be getting around about 595, 550 to 600 for a family house.
0:23:14 > 0:23:20- Whereas with the HMO, it's going to be well above double.- Really?
0:23:20 > 0:23:22Obviously additional money going on.
0:23:22 > 0:23:25But, um, maybe two to three times more.
0:23:26 > 0:23:28That is a lot to take on.
0:23:28 > 0:23:31Bali has extensions to both floors in his plans
0:23:31 > 0:23:35but will need to sort out architects plans and talk to planning.
0:23:35 > 0:23:39He will also have to ensure that he complies with all the HMO regulations.
0:23:40 > 0:23:44Any property that is the main home to at least three unrelated tenants,
0:23:44 > 0:23:49and which shares a kitchen, bathroom or toilet comes under HMO rules.
0:23:51 > 0:23:53Bali is an experienced developer
0:23:53 > 0:23:56and this is the smallest property in his portfolio.
0:23:56 > 0:23:58I am sure that he's well aware,
0:23:58 > 0:24:01to get the best yield from this particular HMO, he is going to
0:24:01 > 0:24:05have to keep his costs down, especially after paying over the odds.
0:24:08 > 0:24:11- So, your budget?- The budget, 35.
0:24:11 > 0:24:1435, and how long's it going to take you to do the work?
0:24:14 > 0:24:18- Um, yes, um. - That's the big question.
0:24:18 > 0:24:22I hope, hopefully, the builder's said he's going to get everything done in six weeks
0:24:22 > 0:24:27apart from the upstairs extension, which depends on planning.
0:24:27 > 0:24:31And then kind of allowing maybe two weeks for that.
0:24:32 > 0:24:38- So, hopefully, within eight weeks. - Get those fingers crossed.
0:24:38 > 0:24:41It's going to be, yes, very rushed.
0:24:41 > 0:24:44The reason is it needs to be ready before the student intake,
0:24:44 > 0:24:49which is kind of end of September going to October, then it gets hard.
0:24:49 > 0:24:51This is a very fast turnaround.
0:24:51 > 0:24:54Hoping to catch the student intake is definitely going to put
0:24:54 > 0:24:56the pressure on.
0:24:56 > 0:24:59At least by stripping the place back they have discovered that
0:24:59 > 0:25:02unsupported chimney, so they know some of what they're dealing with.
0:25:04 > 0:25:08- It's made harder, isn't it, when you've got timelines as well...- Yes. - You're going to have to stick to.
0:25:08 > 0:25:10- And then you're relying on the council as well.- Of course.
0:25:10 > 0:25:13And the architects and the council hopefully,
0:25:13 > 0:25:15you need everything to kind of fall into place
0:25:15 > 0:25:19- because there wasn't much time to start off with.- HMO it is then.
0:25:19 > 0:25:22- That's right.- I wish you all the best.- Cheers.- Bali, good luck.
0:25:22 > 0:25:23Thank you very much, cheers.
0:25:25 > 0:25:29Bali has got his work cut out trying to turn this house into a HMO.
0:25:29 > 0:25:32And I personally think he's going to stretch
0:25:32 > 0:25:34that £35,000 budget to the limit.
0:25:34 > 0:25:36But he's a seasoned property developer,
0:25:36 > 0:25:39he's done his research and all his figures stack up.
0:25:39 > 0:25:43How will he get on? You can find out later in the programme.
0:25:43 > 0:25:46Still to come, in Nottinghamshire this developer is revved
0:25:46 > 0:25:48up for a renovation.
0:25:48 > 0:25:51- So is this something that you do as a living?- No, I'm a chauffeur.- Wow.
0:25:51 > 0:25:53So this is my first venture.
0:25:55 > 0:26:00While in Coventry, Bali's HMO terrace is cooking up problems.
0:26:00 > 0:26:04We had to actually knock down the whole kitchen and start over again.
0:26:07 > 0:26:10Welcome back to Addiscombe in Croydon, where I was
0:26:10 > 0:26:15looking at this three-bed terrace with a guide price of £195,000.
0:26:15 > 0:26:18It wasn't easy to appreciate the space here
0:26:18 > 0:26:20because it was a bit full.
0:26:20 > 0:26:22There is so much stuff in this house.
0:26:22 > 0:26:25Whoever takes this property on is going to have to get a skip
0:26:25 > 0:26:27outside and clear it out.
0:26:27 > 0:26:29I had no doubt that once the house had been
0:26:29 > 0:26:32cleared that it would feel spacious.
0:26:32 > 0:26:34But there was even more room for expansion.
0:26:35 > 0:26:38MUSIC: Up On The Roof by The Drifters
0:26:40 > 0:26:44Yes, this house was ideal for an attic conversion.
0:26:44 > 0:26:48It was bought by husband and wife developing team Pauline and Chris.
0:26:48 > 0:26:50Now Pauline was hoping that her design course
0:26:50 > 0:26:55and love of colour would transform this drab house. No magnolia here.
0:26:57 > 0:26:59But would they be converting that attic?
0:27:00 > 0:27:04- No.- Now that's interesting, is it because funds won't allow it?
0:27:04 > 0:27:07It's not so much that funds won't allow, it's more the time factor.
0:27:07 > 0:27:10We're hoping to be in and out and on to the next one.
0:27:13 > 0:27:16MUSIC: Ain't Got Time by Curtis Mayfield
0:27:16 > 0:27:19Time was of the essence and they decided that time spent
0:27:19 > 0:27:22converting the attic would just eat into their profits.
0:27:22 > 0:27:26However, they did intend building a new extension at the rear and had a
0:27:26 > 0:27:32decent budget of 20 to 30,000 and a timescale of three months to do it.
0:27:32 > 0:27:36So, did these experienced developers manage their speedy schedule?
0:27:44 > 0:27:48Almost five months later and we're back to find out.
0:27:55 > 0:27:59MUSIC: The Air That I Breathe by The Hollies
0:28:12 > 0:28:16There is suddenly room to breathe here now. What a transformation!
0:28:16 > 0:28:20Chris and Pauline have created the airy home that this place
0:28:20 > 0:28:22always had the potential to be.
0:28:22 > 0:28:25The walls have been skimmed and damp-proofed,
0:28:25 > 0:28:30and thanks to the decoration, the rooms look modern and welcoming.
0:28:30 > 0:28:33Let's hear from the interior designer and chief, Pauline.
0:28:35 > 0:28:38Well, this room was completely filled with rubbish
0:28:38 > 0:28:42when we first got it and we spent a few days clearing it all out.
0:28:43 > 0:28:45My vision was to make it nice and neutral
0:28:45 > 0:28:48and just to showcase what a lovely living room it could be.
0:28:48 > 0:28:52So we picked greys because it's a good background colour
0:28:52 > 0:28:55and you have splashes of colour like the rug and the cushions.
0:28:55 > 0:28:59It kind of puts a bit of life and personality into the room.
0:28:59 > 0:29:03So, yes, all in all, I'm quite happy with how it turned out.
0:29:03 > 0:29:08It looks effortly stylish even though it was probably anything but.
0:29:08 > 0:29:11Did they have any problems during the renovation?
0:29:11 > 0:29:15Initially, it was just the amount of junk that was left in the house.
0:29:15 > 0:29:18We spent literally thousands on clearing it out.
0:29:18 > 0:29:22Never ever underestimate the cost of clearing out a house.
0:29:22 > 0:29:24Skips can end up eating into your budget.
0:29:26 > 0:29:30What about that other big issue with this house - that back extension?
0:29:31 > 0:29:34The other big problem was the extension was built to a very,
0:29:34 > 0:29:37very low quality. It's more of a lean-to than an extension.
0:29:37 > 0:29:40So we decided in the end to knock that down and rebuild it,
0:29:40 > 0:29:43which had effects on our time and budget as well.
0:29:44 > 0:29:47And here's how it looks now.
0:29:47 > 0:29:49Wow!
0:29:49 > 0:29:52Well, the back of the house is where we've made the biggest changes.
0:29:52 > 0:29:55It was the old lean-to extension that was here.
0:29:55 > 0:29:57We just knocked it down and rebuilt it properly,
0:29:57 > 0:29:59up to current building reg standards.
0:29:59 > 0:30:01So, it's all nice cavity walls, insulated,
0:30:01 > 0:30:03we've put the roof lights in.
0:30:03 > 0:30:06We've also knocked down the wall between the dining room
0:30:06 > 0:30:10and kitchen, and yeah, it's our first big build on a project,
0:30:10 > 0:30:13and we're really pleased with the results.
0:30:13 > 0:30:15Much like the rest of this house,
0:30:15 > 0:30:19I think the open-plan living area looks great.
0:30:19 > 0:30:23It seems Chris and Pauline really do make a good team.
0:30:23 > 0:30:24Were there ANY arguments?
0:30:24 > 0:30:27I'm married to a control freak, right?
0:30:27 > 0:30:31He says he gives me complete free rein, but you know
0:30:31 > 0:30:34when you pick your colours, and he looks at you and goes,
0:30:34 > 0:30:37"Oh, no. Not different colours for every room. It's budget,"
0:30:37 > 0:30:39and all this, you know?
0:30:39 > 0:30:41But, generally speaking,
0:30:41 > 0:30:44he came round to my way of thinking most of the time.
0:30:44 > 0:30:45SHE LAUGHS
0:30:45 > 0:30:50# One of these days, these boots are gonna walk all over you #
0:30:50 > 0:30:55Oh, now that's a mean music choice! Chris is no pushover.
0:30:55 > 0:30:58After all, Pauline didn't get the bi-fold doors she wanted.
0:31:00 > 0:31:01Speaking of money,
0:31:01 > 0:31:06how did they get on sticking to their £20,000-£30,000 budget?
0:31:07 > 0:31:09SHE LAUGHS HE WHISTLES
0:31:09 > 0:31:11Uh-oh! Come on, out with it.
0:31:11 > 0:31:15We sailed through our original budget, but it was a sort of
0:31:15 > 0:31:17thought-out expense.
0:31:17 > 0:31:21As soon as we decided to rebuild the extension properly, rather
0:31:21 > 0:31:24than just patch it up, the extension would take up a good £30,000,
0:31:24 > 0:31:28and the rest of the house was going to be a good £30,000 as well.
0:31:29 > 0:31:34But having bought the property for £330,000, they've now spent a total
0:31:34 > 0:31:36of 60 grand on the renovation,
0:31:36 > 0:31:39and taken almost five months rather than the original three.
0:31:39 > 0:31:42Will that additional spend be worth it?
0:31:43 > 0:31:46We've asked along two local estate agents to see what
0:31:46 > 0:31:49they think of Chris and Pauline's handiwork.
0:31:49 > 0:31:51The house is actually non-recognisable from the last
0:31:51 > 0:31:55time I saw it. In particular, I really like the kitchen-dining area.
0:31:55 > 0:31:57They've opened it up, it's really modern, it's bright,
0:31:57 > 0:32:00it's spacious, it's what buyers would really want in this area.
0:32:00 > 0:32:02I think the look and the finish of the house is really nice.
0:32:02 > 0:32:05It's appealing, it's nice and warm, very cosy,
0:32:05 > 0:32:08and most importantly, it appeals to someone who's coming in.
0:32:08 > 0:32:11It makes them feel like, "I can live in here. This is my home."
0:32:11 > 0:32:15Well, the couple always intended selling on this property.
0:32:15 > 0:32:18Could there be a profit for them if they did decide to let it out?
0:32:18 > 0:32:22The rental for this property would be approximately £1,750 per
0:32:22 > 0:32:23calendar month.
0:32:23 > 0:32:25Rental-wise, I would probably expect them
0:32:25 > 0:32:29to get around about £1,800 per calendar month.
0:32:29 > 0:32:33With a total spend of £390,000, that would give Chris
0:32:33 > 0:32:36and Pauline a top rental yield of 5.5%,
0:32:36 > 0:32:40but it's the sale value that they are really interested in.
0:32:40 > 0:32:46This property, I would have put on the market for around £475,000,
0:32:46 > 0:32:47maybe £480,000.
0:32:47 > 0:32:51I think the value of this property, as it's done, would be
0:32:51 > 0:32:56around the £480,000 to £490,000.
0:32:56 > 0:32:59Right, it's under offer at £479,000, so it's exactly on the money.
0:32:59 > 0:33:01Yeah, pretty bang on. Good.
0:33:01 > 0:33:03Well, that's brilliant news.
0:33:03 > 0:33:08Chris and Pauline have already accepted an offer of £479,000,
0:33:08 > 0:33:13which would give them a profit of 89 grand, minus the usual taxes
0:33:13 > 0:33:14and expenses.
0:33:14 > 0:33:17So, I think the big question on everybody's lips is -
0:33:17 > 0:33:20does that mean Pauline gets a new handbag?
0:33:20 > 0:33:24- Oh, yes.- Oh, is that your treat from this, is it?- No...Yes.
0:33:24 > 0:33:25We haven't even got the money yet.
0:33:25 > 0:33:27SHE LAUGHS
0:33:34 > 0:33:36Welcome to Nottinghamshire, where the bacon sarnie's
0:33:36 > 0:33:38best friend was invented,
0:33:38 > 0:33:41and if I said it was brown and spicy, would you know what I mean?
0:33:41 > 0:33:46# I love sauce #
0:33:46 > 0:33:49And in tribute, I decided to wear a saucy little number myself.
0:33:51 > 0:33:57I'm in Old Nuthall, a village about 4.5 miles from Nottingham,
0:33:57 > 0:34:00on the hottest day of the year, hence no jacket.
0:34:00 > 0:34:04Phew! Here to see, hopefully, a hot property.
0:34:04 > 0:34:08£165,000 was the guide price for this.
0:34:08 > 0:34:12It's a three bed semidetached, lovely area, let's have a look.
0:34:12 > 0:34:15# I need hot stuff #
0:34:21 > 0:34:28Wow. Well, wow, double wow! How lovely to see that still in place.
0:34:28 > 0:34:30So often, with this era of house,
0:34:30 > 0:34:32features like that have been removed.
0:34:32 > 0:34:36This amazing inner stained glass door.
0:34:36 > 0:34:38Whatever you do, you'd want to keep that.
0:34:38 > 0:34:41It's really nice to have that little porch area out on the front.
0:34:41 > 0:34:46Into a really nice open entrance area here,
0:34:46 > 0:34:48bedrooms obviously upstairs.
0:34:48 > 0:34:52The layout, you must have seen 1,000 times.
0:34:52 > 0:34:55Living room over to the right-hand side there.
0:34:55 > 0:34:58Probably got a bay window, yes, of course it's got a bay window.
0:34:58 > 0:35:01Rear living room there, and then through to what is always
0:35:01 > 0:35:06the issue with this design and era of house.
0:35:06 > 0:35:09The kitchen is always small.
0:35:09 > 0:35:11This is an amazing family home,
0:35:11 > 0:35:15and yet there's this really small kitchen.
0:35:15 > 0:35:17So, a classic thing to do with these kind of properties is
0:35:17 > 0:35:19take out this wall.
0:35:19 > 0:35:22Obviously, you need to put the proper strengthening there,
0:35:22 > 0:35:25a steel joist going across or whatever, and get
0:35:25 > 0:35:28a builder in to check that out and make sure that's done properly.
0:35:28 > 0:35:34But then open it all up, and you've got an amazing family living/kitchen
0:35:34 > 0:35:39area, and then, wow, this is turning into a really nice project.
0:35:40 > 0:35:41In the front garden,
0:35:41 > 0:35:44I've noticed a rather large tree blocking the view,
0:35:44 > 0:35:46and some of the light from the front room,
0:35:46 > 0:35:49so I think it would be worth removing, but just make sure
0:35:49 > 0:35:54to check with your local council that any tree is not covered by a TPO.
0:35:58 > 0:36:01So, another nice stained glass window on the stairs there,
0:36:01 > 0:36:04a landing, and off it a bathroom and separate loo.
0:36:04 > 0:36:06Most people would probably knock those into one,
0:36:06 > 0:36:09although I'm never sure.
0:36:09 > 0:36:14Nice sized rear bedroom, and a smaller boxroom,
0:36:14 > 0:36:18and through to, I guess, the second double bedroom.
0:36:18 > 0:36:21Some lovely features. Again, look at that window at the front.
0:36:21 > 0:36:24That bay there, the round radiator.
0:36:24 > 0:36:26Gosh, I hope you don't have to replace that. Beautiful.
0:36:26 > 0:36:30And the whole house needs a bit of sorting out, needs a bit of
0:36:30 > 0:36:32tender loving care, needs a bit of modernisation,
0:36:32 > 0:36:36but it's just waiting for somebody to do that.
0:36:36 > 0:36:39And intrinsically, what a great house this is.
0:36:39 > 0:36:42It looks as if this house was probably home to a senior
0:36:42 > 0:36:46citizen, and whilst it needs a bit of work to bring it up-to-date,
0:36:46 > 0:36:48the original features have been well maintained,
0:36:48 > 0:36:51and it has bags of character.
0:36:51 > 0:36:53This house was clearly very well loved.
0:36:54 > 0:36:59# I will take care of you. #
0:37:02 > 0:37:05So, out through these really lovely patio doors from the dining
0:37:05 > 0:37:06room to the back garden.
0:37:06 > 0:37:09We'll come to that in a minute, but out here you've got a single
0:37:09 > 0:37:12garage and a couple of useful outbuildings. That's good.
0:37:12 > 0:37:16Now, really good - look at this garden. Ha!
0:37:17 > 0:37:22What an absolute delight, especially on a day like today.
0:37:23 > 0:37:27It's going to take a lot of work to get that garden in order,
0:37:27 > 0:37:30but once it's done it could be beautiful.
0:37:30 > 0:37:32With all this space and versatility on offer,
0:37:32 > 0:37:35I reckon this house could be a bit of a bargain,
0:37:35 > 0:37:40if you could get it anywhere near that guide price of £165,000.
0:37:43 > 0:37:46What does a local estate agent think?
0:37:46 > 0:37:48We asked one along to get his opinion.
0:37:48 > 0:37:50General condition, obviously it's a little dated,
0:37:50 > 0:37:52it does need some upgrading.
0:37:52 > 0:37:55From what we can see, you're looking at new windows and doors,
0:37:55 > 0:37:59central heating, electrics, full modernisation throughout.
0:37:59 > 0:38:03So, even just a modernisation will possibly take a bit more work
0:38:03 > 0:38:04than we first thought.
0:38:04 > 0:38:06What about changing the layout?
0:38:06 > 0:38:09What I'd look to do is bring the two rooms at the back together,
0:38:09 > 0:38:12to make a big open dining kitchen, and also spend a bit of time
0:38:12 > 0:38:16renovating the garden and making it more family friendly.
0:38:16 > 0:38:17So, given its guide of £165,000,
0:38:17 > 0:38:20were someone to fully modernise the property
0:38:20 > 0:38:22and open out that kitchen living area,
0:38:22 > 0:38:26what could they hope to achieve when it's put on the open market?
0:38:28 > 0:38:30When completed, if done to a very high standard,
0:38:30 > 0:38:33we'd be looking to put the property on the market around
0:38:33 > 0:38:34about the £235,000 to £240,000.
0:38:34 > 0:38:37And if they were to let the property?
0:38:37 > 0:38:40We've recently rented another property, similar size,
0:38:40 > 0:38:43on this street, for £795 per calendar month,
0:38:43 > 0:38:46so we'd be looking to achieve a similar figure.
0:38:46 > 0:38:49Well, this is a classic auction purchase, isn't it?
0:38:49 > 0:38:52A house which obviously just needs a bit of updating,
0:38:52 > 0:38:56in a good area, that you can certainly add value to.
0:38:56 > 0:38:58Let's see who spotted the opportunity
0:38:58 > 0:38:59when it went under the hammer.
0:39:01 > 0:39:05Unfortunately, we didn't catch all the bidding for this property.
0:39:05 > 0:39:13However, we can see the final bid of £178,000 being made by Howard.
0:39:14 > 0:39:17Sold at £178,000, thank you.
0:39:19 > 0:39:23Howard lives in London, but I met him back in Old Nuthall to see
0:39:23 > 0:39:26his new property, and find out more about him.
0:39:28 > 0:39:32- Howard, good to meet you. - Thank you.- Congratulations.
0:39:32 > 0:39:34Tell me why you wanted to buy this place.
0:39:34 > 0:39:36I've been looking for some time for a place to renovate.
0:39:36 > 0:39:38First time I've done one.
0:39:38 > 0:39:39Oh, wow.
0:39:39 > 0:39:42I was looking around, and this seemed like a nice property to buy.
0:39:42 > 0:39:46- So is this something you do as a living?- No, I'm a chauffeur.
0:39:46 > 0:39:50- A chauffeur? Oh, wow. - So this is my first venture.- Right.
0:39:50 > 0:39:53What kind of chauffeuring do you do?
0:39:53 > 0:40:00- I work in London.- Right.- So it's more just sort of VIP chauffeuring.
0:40:00 > 0:40:02- So you got a posh car? - Fairly posh, yeah.
0:40:02 > 0:40:06- With leather seats and champagne on tap.- Yeah, sort of.
0:40:07 > 0:40:11So, from being a chauffeur to being a property investor,
0:40:11 > 0:40:18- how did that come about?- I came into some money last year, some cash.
0:40:18 > 0:40:20- It's something I've always wanted to do.- Right.
0:40:20 > 0:40:23I came to look at the house, and I just thought it was a lovely house.
0:40:23 > 0:40:26Family house, lovely garden, nice size rooms.
0:40:26 > 0:40:28And actually a very nice area.
0:40:28 > 0:40:31It is, actually, yeah, now that I've looked round.
0:40:31 > 0:40:32Yeah, it is a very nice area.
0:40:32 > 0:40:38# Who's gonna drive you home tonight? #
0:40:38 > 0:40:42Well, it could be Howard, if you are important enough.
0:40:42 > 0:40:46But does Howard intend to give his new property the VIP treatment?
0:40:50 > 0:40:51New windows throughout.
0:40:53 > 0:40:56- Probably going to take that wall down.- Good idea.
0:40:56 > 0:40:59I think the kitchen's a bit small, although all the rooms are nice
0:40:59 > 0:41:02size rooms, but the kitchen's a bit small.
0:41:02 > 0:41:06The front porch, new, but the door as you walk through, going
0:41:06 > 0:41:07to keep that because that's nice
0:41:07 > 0:41:10- stained glass doors, they're lovely. - Yeah. Oh, good.
0:41:10 > 0:41:12And the one on the landing as well, going to keep that,
0:41:12 > 0:41:14- because that's a nice feature. - Good.
0:41:14 > 0:41:18- The bathroom, going to knock that into one.- OK.- Make a big bathroom.
0:41:18 > 0:41:22I've had an electrician look at the wiring, he said everything is good.
0:41:22 > 0:41:27- It doesn't need anything doing to it, but new sockets put in.- Right.
0:41:27 > 0:41:29And it's difficult, obviously.
0:41:29 > 0:41:35- The heating seems OK. The radiators and pipework, but a new boiler. - Mm-hm.
0:41:35 > 0:41:39- Put a combination boiler in.- Not that we need it on a day like today.
0:41:39 > 0:41:40- No.- Hottest day of the year.
0:41:42 > 0:41:47Did I mention it was hot? However, Howard is one cool customer.
0:41:47 > 0:41:51Even though this is his first venture, Howard has done all
0:41:51 > 0:41:54the right bits of research and thought this through.
0:41:54 > 0:41:55And, take note -
0:41:55 > 0:41:59he has also had a solicitor check the legal pack.
0:41:59 > 0:42:01I'm impressed.
0:42:01 > 0:42:05- And what's the timescale for getting it sorted out?- I'm in no rush.
0:42:05 > 0:42:10Six months? Got plenty of time, really. Yeah, no immediate rush.
0:42:10 > 0:42:13- And then back on the market? - It could be less than that.
0:42:13 > 0:42:15Yeah, then put it back on the market.
0:42:15 > 0:42:18Because of his job, Howard is tied to London for most of the week,
0:42:18 > 0:42:21and he will be getting local tradespeople in to do
0:42:21 > 0:42:23most of the work.
0:42:23 > 0:42:26So, why did he choose to buy so far out of his home city?
0:42:27 > 0:42:32To be honest, I couldn't afford to buy in London. It's too expensive.
0:42:32 > 0:42:34But where... I didn't mind where. Could have been anywhere.
0:42:34 > 0:42:38So, that's probably, what? Two and a half, three hours from here, is it?
0:42:38 > 0:42:42- Yeah, about two and a quarter hours to get here, so not too far.- Right.
0:42:42 > 0:42:45Well, it can take you two hours to get across London, can't it?
0:42:45 > 0:42:47- Exactly. Yeah. - And what's the plan for it, then?
0:42:47 > 0:42:50- Are you doing it up to sell it on, or rent it out?- Yes.
0:42:50 > 0:42:51Yeah, just to sell it on.
0:42:51 > 0:42:53You've obviously looked at potential profit,
0:42:53 > 0:42:55so talk me through your thought processes on that.
0:42:55 > 0:42:59- I think it'll probably go for 230, and up.- OK.
0:42:59 > 0:43:02And how much are you planning to spend on doing it up?
0:43:02 > 0:43:08- I think 20 should be ample.- Then move onto the next one, perhaps?
0:43:08 > 0:43:10Yeah, yeah, then do another one, if we're successful.
0:43:10 > 0:43:13- Well listen, congratulations.- Thank you very much.- Good luck.- Thank you.
0:43:13 > 0:43:16- Look forward to seeing how you get on.- Thank you.
0:43:17 > 0:43:21So, Howard a long distance developer, living in London
0:43:21 > 0:43:24and buying a property near Nottingham.
0:43:24 > 0:43:29But, I think he's got a really good one here, and he can add value.
0:43:29 > 0:43:32How will he get on? You can find out later in the show.
0:43:36 > 0:43:38So our first buyer can take a well-earned rest,
0:43:38 > 0:43:39but what about the other two?
0:43:39 > 0:43:42Yes, will it be the sweet smell of success for them,
0:43:42 > 0:43:44or the faint whiff of disappointment?
0:43:44 > 0:43:45Let's find out.
0:43:47 > 0:43:48We are back in Coventry now,
0:43:48 > 0:43:52to take a look at this two-bed terraced house.
0:43:52 > 0:43:56Located in a popular area, and with a guide price of £75,000,
0:43:56 > 0:44:00I was feeling pretty positive, right until I walked through the door.
0:44:11 > 0:44:12CHUCKLES
0:44:12 > 0:44:16# Don't speak, I know what you're thinking
0:44:16 > 0:44:19# So please stop explaining
0:44:19 > 0:44:23# Don't tell me cos it hurts #
0:44:23 > 0:44:27Yes, this house was going to need the works.
0:44:27 > 0:44:30Heating, electrics, plumbing, you name it.
0:44:30 > 0:44:33But the thought of all that work didn't put off property developer
0:44:33 > 0:44:38Bali, who bought the house for £102,000, and had big plans.
0:44:39 > 0:44:42So you must have been able to see the potential?
0:44:42 > 0:44:43Yeah, I thought that there was.
0:44:43 > 0:44:47It's a two up, two down, with a possibility of maybe getting
0:44:47 > 0:44:49four lettable rooms out of it.
0:44:51 > 0:44:53# I wanna do great things
0:44:53 > 0:44:56# I don't wanna compromise #
0:44:58 > 0:45:00Yes, you heard right - Bali wanted to turn this into a
0:45:00 > 0:45:05four-bedroom HMO rental property, by building an extension at the back.
0:45:07 > 0:45:11He had a budget of £35,000, and a very tight eight-week
0:45:11 > 0:45:15timescale in the hope of catching the new student intake.
0:45:15 > 0:45:17Even for a seasoned developer like Bali,
0:45:17 > 0:45:19this was going to be a big job.
0:45:24 > 0:45:26Well, four months later, we're back to see
0:45:26 > 0:45:29if there's any hard-working students in situ.
0:45:42 > 0:45:45Wow. I said that Bali would basically have to rebuild
0:45:45 > 0:45:48the interior of the house, and it looks like he has.
0:45:49 > 0:45:52He's even managed to get rid of that tree outside,
0:45:52 > 0:45:56but has he been able to cram four bedrooms in?
0:45:56 > 0:46:00Let's hear about all the work he's done from the man himself.
0:46:00 > 0:46:01OK, so when you were last here,
0:46:01 > 0:46:04as you know the house was in terrible condition.
0:46:04 > 0:46:08We've had to strip it all bare to the brick, rewire it,
0:46:08 > 0:46:12re-plumb it, created two new bedrooms downstairs,
0:46:12 > 0:46:16with their own private bathrooms, two en-suites upstairs,
0:46:16 > 0:46:18so four bedrooms now with their own private bathrooms,
0:46:18 > 0:46:24redone the garden, built this into a kitchen and common sitting area.
0:46:25 > 0:46:28Situated where the rear living room used to be,
0:46:28 > 0:46:30the kitchen has been nicely finished.
0:46:31 > 0:46:33By sorting that chimney breast,
0:46:33 > 0:46:37Bali has made this communal area as large as possible for any tenants.
0:46:37 > 0:46:39But, more important to Bali than the kitchen,
0:46:39 > 0:46:42the four double bedrooms are all present and correct.
0:46:46 > 0:46:50So, here we're in the upstairs rear bedroom.
0:46:50 > 0:46:53We've created a second story extension to make this en suite
0:46:53 > 0:46:55for this room.
0:46:55 > 0:46:57Another nice little bonus is the builder had
0:46:57 > 0:46:59an idea of creating some extra space over the stair,
0:46:59 > 0:47:04so we've got an extra cupboard over here over the stairs.
0:47:04 > 0:47:06So yeah, quite pleased with this one.
0:47:06 > 0:47:09That extension has really made the world of difference in terms
0:47:09 > 0:47:12of making space for the rooms.
0:47:12 > 0:47:15I think Bali deserves a lot of credit, for not just the size,
0:47:15 > 0:47:19but the quality of the finish on these rooms.
0:47:19 > 0:47:21They really look like a pleasant place to live.
0:47:21 > 0:47:24Did he have any problems with that extension?
0:47:27 > 0:47:31The original plan was to extend backwards, one extension there,
0:47:31 > 0:47:36and another extension upwards, for the en-suite upstairs.
0:47:36 > 0:47:38We had a little bit of a problem,
0:47:38 > 0:47:42discovering some movement in the previous kitchen.
0:47:42 > 0:47:45So then we had to actually knock down the whole kitchen
0:47:45 > 0:47:46and start over again.
0:47:46 > 0:47:50# Aye aye oh, shake your foundations
0:47:50 > 0:47:53# Aye aye oh, shake it to the floor #
0:47:55 > 0:47:59I think the new extension is a vast improvement, but having knocked down
0:47:59 > 0:48:03that kitchen means a costly project could well have cost a lot more.
0:48:03 > 0:48:05How much exactly did Bali spend?
0:48:08 > 0:48:10The final spend has run a few thousand pounds over,
0:48:10 > 0:48:14mainly due to the wall which needed to be knocked down.
0:48:14 > 0:48:17Before the furniture we've installed yesterday,
0:48:17 > 0:48:22it was below £45,000, and after the furniture it's just below £50,000.
0:48:22 > 0:48:26The total time taken with the job has been about four months,
0:48:26 > 0:48:28just slightly more than I would have wanted, really.
0:48:28 > 0:48:31The main reasons for that being the kitchen, which needed to be
0:48:31 > 0:48:33knocked down and rebuilt, which was not expected.
0:48:35 > 0:48:38A 15 grand overspend on his original budget,
0:48:38 > 0:48:42and don't forget, he'd already paid top price at auction.
0:48:42 > 0:48:46That brings his total to £152,000.
0:48:46 > 0:48:50So, what will two local estate agents think of this investment?
0:48:50 > 0:48:52This is my second time in the property,
0:48:52 > 0:48:54and the changes are dramatic, to be honest.
0:48:54 > 0:48:56I'm really surprised at what I've seen.
0:48:56 > 0:48:58I think the new layout of the property does work
0:48:58 > 0:48:59particularly well.
0:48:59 > 0:49:01It's a terrific job.
0:49:01 > 0:49:03Demand for this property's going to be high.
0:49:03 > 0:49:07There's a very, very high market for Earlsdon with students,
0:49:07 > 0:49:09and this is a perfect find.
0:49:10 > 0:49:13Bali spent £102,000 at auction,
0:49:13 > 0:49:17and 50 grand renovating and furnishing the house.
0:49:17 > 0:49:21The estate agents estimated that the bedroom without the en-suite
0:49:21 > 0:49:25could reach a figure of between £120 to £125 a week.
0:49:25 > 0:49:28What about the bedrooms with the en-suites?
0:49:32 > 0:49:34The en-suite bedrooms could expect to return in the region of
0:49:34 > 0:49:38probably £135, £140 per week.
0:49:38 > 0:49:44We would be looking around the £135 to £140 per week mark.
0:49:44 > 0:49:46Yeah, that's almost spot on.
0:49:46 > 0:49:49A little bit more on one, and about the same for the others.
0:49:50 > 0:49:56On the face of it, that's a yield of over 18%, but it's worth remembering
0:49:56 > 0:49:58that those rooms may not rent all year,
0:49:58 > 0:50:03particularly those long summer months, if you do rent to students.
0:50:04 > 0:50:08Still, it's a good result nonetheless, and if Bali were
0:50:08 > 0:50:13to sell his £152,000 investment, could he make a profit on it?
0:50:16 > 0:50:21I'd be expecting to put it on the market for about £185-£190,000.
0:50:21 > 0:50:24That would generate a yield of about 9%,
0:50:24 > 0:50:26based on the rental figures that I've given.
0:50:26 > 0:50:31For that price, a new buyer could still make a decent yield of 9%,
0:50:31 > 0:50:36and Bali would potentially have a pre-tax profit of 38 grand.
0:50:36 > 0:50:40But this developer has his sights set on other things.
0:50:40 > 0:50:42During the course of this renovation,
0:50:42 > 0:50:44we had some very good news.
0:50:44 > 0:50:47Planning permission was passed on another property we already own,
0:50:47 > 0:50:50and work will start in three or four months'
0:50:50 > 0:50:52time to extend that to make 11 en-suites.
0:50:58 > 0:51:00We're back in Nottinghamshire, to see
0:51:00 > 0:51:05this three bed detached house, guided at £165,000.
0:51:05 > 0:51:08The bedrooms were a good size, as was the garden,
0:51:08 > 0:51:12and the first thing I saw as I walked in was a real treat.
0:51:15 > 0:51:22Wow. Well, wow, double wow. How lovely to see that still in place.
0:51:22 > 0:51:25This amazing inner stained glass door.
0:51:25 > 0:51:27Whatever you do, you'd want to keep that.
0:51:27 > 0:51:31# It's all just a little bit of history repeating #
0:51:31 > 0:51:34The good news was those little pieces of history were
0:51:34 > 0:51:36dotted all over the house.
0:51:36 > 0:51:39The bad news was that another
0:51:39 > 0:51:43piece of history had also been kept - that tiny kitchen.
0:51:43 > 0:51:47It was way too small for a modern family home, but here to put it
0:51:47 > 0:51:53to rights was Londoner Howard, who bought the property for £178,000.
0:51:53 > 0:51:57- So is this something you do as a living?- No, I'm a chauffeur.
0:51:57 > 0:52:01- A chauffeur? Oh, wow. - So this is my first venture.
0:52:01 > 0:52:07# Bye-bye baby
0:52:07 > 0:52:10# Time to hit the road to dreamland #
0:52:10 > 0:52:13Would this property be Howard's road to a new career?
0:52:14 > 0:52:18He had a budget of £20,000, and a timescale of six months
0:52:18 > 0:52:22to turn this into every homeowner's dream.
0:52:25 > 0:52:27Well, time now to return to see
0:52:27 > 0:52:32if our chauffeur has transported this to the 21st century.
0:52:32 > 0:52:36MUSIC: Old, old-fashioned by Frightened Rabbit
0:52:42 > 0:52:45Gone is the old-fashioned decor, revealing a modern,
0:52:45 > 0:52:47bright family home.
0:52:48 > 0:52:53Nowhere more so is this evident than the back of the house, where Howard
0:52:53 > 0:52:57has knocked down the kitchen wall to create a spacious living area.
0:52:57 > 0:53:01But it took more than a sledgehammer to get this look right.
0:53:01 > 0:53:04There was a window we had bricked up, there was
0:53:04 > 0:53:06a door there which we had bricked up,
0:53:06 > 0:53:10so that we could have the kitchen flowing all the way round.
0:53:10 > 0:53:13The door was a last-minute decision.
0:53:13 > 0:53:16We decided it would look best to have the door bricked up
0:53:16 > 0:53:18and have the kitchen flowing all the way round.
0:53:18 > 0:53:22And the modernisation goes further than the things that can be
0:53:22 > 0:53:24seen by the naked eye.
0:53:24 > 0:53:27Howard has re-skimmed the walls, had a partial rewiring,
0:53:27 > 0:53:29and replaced the boiler.
0:53:29 > 0:53:33However, as glad as I am to see the house has been brought up to
0:53:33 > 0:53:37date, I have noticed that some of the stained glass windows are gone.
0:53:37 > 0:53:39What was Howard's thinking there?
0:53:39 > 0:53:42The original windows were very nice, but they were wooden.
0:53:42 > 0:53:45We were told everyone wants PVC windows these days,
0:53:45 > 0:53:49so we replaced all the windows except the back bedroom.
0:53:49 > 0:53:53That one had already been replaced, and the patio door.
0:53:53 > 0:53:55The front door, we've left,
0:53:55 > 0:54:00and there's a window on the stairs by the landing we've left,
0:54:00 > 0:54:03because again that's got stained glass and it looks nice.
0:54:03 > 0:54:06Well, as much as it is sad to see them go,
0:54:06 > 0:54:09if Howard wants the house to appeal to the broadest spectrum,
0:54:09 > 0:54:13I suppose replacing those windows was a sensible decision.
0:54:14 > 0:54:18# Leave the past behind #
0:54:20 > 0:54:23And I have to say that he has done it quite sympathetically.
0:54:23 > 0:54:27In fact, I'd say a lot of thought has gone into the design
0:54:27 > 0:54:30of this place, not least combining the bathroom and toilet.
0:54:30 > 0:54:32It looks very chic.
0:54:34 > 0:54:38We decided to go for a little bit higher spec.
0:54:38 > 0:54:40We weren't quite sure who we'd be selling it to,
0:54:40 > 0:54:43but it was either go very cheap or...
0:54:43 > 0:54:47And we went a little bit over spec, but I think it looks quite nice.
0:54:47 > 0:54:50I agree, there are lots of nice touches throughout the house,
0:54:50 > 0:54:52such as the decking,
0:54:52 > 0:54:55which I think gives a real focal point to that enormous garden.
0:54:56 > 0:54:59Howard is based in London, so how did
0:54:59 > 0:55:02he find organising such a large project from such a distance away?
0:55:05 > 0:55:10I tried to do some of the work, but I was so busy with my own work,
0:55:10 > 0:55:15so we had a mixture of traders I knew and local traders.
0:55:16 > 0:55:20The project has gone on more than I thought it would,
0:55:20 > 0:55:24but because it's my first venture, I wasn't on a timescale.
0:55:24 > 0:55:28I thought it'll be when it's ready, so there was no rush to do it.
0:55:30 > 0:55:31But what about that budget?
0:55:31 > 0:55:34Did he manage to stick to that 20 grand maximum?
0:55:36 > 0:55:41The budget, I think, is now about £33,000, maybe £34,000,
0:55:41 > 0:55:44but we've gone a higher spec than we thought we would.
0:55:44 > 0:55:46Well, I think it looks great.
0:55:46 > 0:55:50But will it be good enough to warrant that additional expenditure?
0:55:51 > 0:55:54Time to get the experts' opinions,
0:55:54 > 0:55:57so we have asked along two local estate agents.
0:55:58 > 0:56:00The layout works really well for a family,
0:56:00 > 0:56:03especially with the room at the back.
0:56:03 > 0:56:05Now with the four-piece bathroom suite,
0:56:05 > 0:56:08and the two good double bedrooms, it really is a nice family
0:56:08 > 0:56:10property, and especially in a nice cul-de-sac location.
0:56:10 > 0:56:14It's a very attractive property, in a good location,
0:56:14 > 0:56:17and it's convenient for Kimberley, the town centre,
0:56:17 > 0:56:21and I'm sure that a number of people will be interested.
0:56:23 > 0:56:27Very positive, but will that be reflected in the valuations?
0:56:27 > 0:56:29Howard bought the property for £178,000,
0:56:29 > 0:56:33and has now spent £34,000 on it.
0:56:33 > 0:56:37What could he expect if he were to rent out or sell on the property?
0:56:39 > 0:56:42In the current rental market, we'd be looking to achieve
0:56:42 > 0:56:45somewhere between £800 and £850 per calendar month.
0:56:45 > 0:56:48On the current rental market, I believe this property would
0:56:48 > 0:56:54make between £775-£825 per calendar month.
0:56:54 > 0:56:58That top rental figure would mean a modest yield of not quite 5%.
0:56:58 > 0:57:02So, having spent a total of 212 grand on his first venture,
0:57:02 > 0:57:03can he make a profit?
0:57:05 > 0:57:06On the current sales market today,
0:57:06 > 0:57:09we'd be looking to achieve somewhere between £250,000 to £260,000.
0:57:09 > 0:57:12I believe this property would make, on the current market,
0:57:12 > 0:57:17between £235,000 and £245,000.
0:57:17 > 0:57:21Phew! Howard's decision to burst the budget has paid off,
0:57:21 > 0:57:26as that top valuation could mean a potential pre-tax profit of £48,000.
0:57:28 > 0:57:30So, is he happy with the result?
0:57:30 > 0:57:32I'm very happy. It could have gone the other way,
0:57:32 > 0:57:34we could have had a lot of problems with the house
0:57:34 > 0:57:39and broken even, or even lost money, so I'm very happy with that.
0:57:39 > 0:57:42And, although I don't think his job as a chauffeur will take
0:57:42 > 0:57:46a back seat quite yet, I have a feeling that there will be
0:57:46 > 0:57:48other projects for Howard further down the road.
0:57:50 > 0:57:55As soon as we sell this one, I'll be back to the auction to look around.
0:57:55 > 0:57:56Get another one.
0:58:00 > 0:58:03Property development can sometimes put you through the wringer,
0:58:03 > 0:58:06- but there are rich pickings if you do it well.- Correct, Lucy.
0:58:06 > 0:58:09As well as financial gain, the satisfaction on a job well done.
0:58:09 > 0:58:12Well, we will have plenty more stories from the auction
0:58:12 > 0:58:15rooms for you next time, here on Homes Under The Hammer.
0:58:15 > 0:58:16- Goodbye.- Bye.