0:00:02 > 0:00:05Hello and welcome to the show. Now, even at the best of times,
0:00:05 > 0:00:08buying property can be full of delays and dilemmas.
0:00:08 > 0:00:09Yeah, and if time's not on your side,
0:00:09 > 0:00:11why not head down to your local property auction?
0:00:11 > 0:00:15Yes, in 28 days, you can often have the keys in your possession.
0:00:15 > 0:00:17So, why not buy your home under the hammer?
0:00:45 > 0:00:5118 miles south of Sheffield lies the Derbyshire town of Bolsover.
0:00:51 > 0:00:54Famous for its haunted castle, gold mining
0:00:54 > 0:00:58and, I am told, a property that's something of a steal
0:00:58 > 0:01:02for landlords looking for a buy-to-let investment.
0:01:02 > 0:01:04Well, bit of a commuter's dream this one.
0:01:04 > 0:01:06Just a few miles from a junction with the M1,
0:01:06 > 0:01:10with easy access to that motorway network.
0:01:10 > 0:01:16And on this very traditional sort of post-war housing estate...
0:01:16 > 0:01:20Not necessarily everyone's choice but a lot of house for the money.
0:01:20 > 0:01:26£36,000 was the guide price for a four-bedroom mid-terrace.
0:01:26 > 0:01:28Can't go wrong really, can you?
0:01:28 > 0:01:30MUSIC: Steal by Spandau Ballet
0:01:30 > 0:01:34# You know how I feel so come along and steal. #
0:01:34 > 0:01:37Through the door, little entrance area here, which is quite good.
0:01:37 > 0:01:41Stairs up to the bedroom then into this little sort of ante-area.
0:01:41 > 0:01:44- Wow! - HE LAUGHS
0:01:44 > 0:01:47That is bright. Gosh!
0:01:47 > 0:01:48Bright green toilet.
0:01:48 > 0:01:51Well, anyway, at least there is a toilet downstairs, which is like a little cloakroom...
0:01:51 > 0:01:53Cloakroom if you were a lizard
0:01:53 > 0:01:55wanting to take off skin or something!
0:01:57 > 0:02:01But anyway, this little ante-area here and then into the kitchen.
0:02:01 > 0:02:04Immediately, I'm thinking, what is this wall doing here?
0:02:04 > 0:02:06Wouldn't it be great to extend the size of this kitchen
0:02:06 > 0:02:09to create a really nice sort of flowing space?
0:02:09 > 0:02:14Door out to the back, though, which is quite good and then into your lounge.
0:02:14 > 0:02:16Wow!
0:02:16 > 0:02:20Well, finally after 12 years on Homes Under The Hammer,
0:02:20 > 0:02:23somebody lays out the red carpet for me.
0:02:23 > 0:02:26Ha. About time, too.
0:02:26 > 0:02:31In general, though, I'm not sure this is the most relaxing
0:02:31 > 0:02:34colour scheme to have for your lounge.
0:02:34 > 0:02:38It does, however, have complementary wallpaper.
0:02:38 > 0:02:43OK, so, it's a nice size, it's got dual aspect -
0:02:43 > 0:02:46it just needs a paint job.
0:02:46 > 0:02:49MUSIC: Soul Bossa Nova by Quincy Jones And His Orchestra
0:02:49 > 0:02:53Well, perhaps also remove the polystyrene ceiling tiles.
0:02:53 > 0:02:55They're a big fire hazard.
0:02:55 > 0:02:59The fab unfitted carpet might be salvageable.
0:02:59 > 0:03:02Let's see what delights are waiting upstairs.
0:03:05 > 0:03:07Well, it looks like you've got central heating
0:03:07 > 0:03:10but that boiler, I think, has seen better days.
0:03:10 > 0:03:14But upstairs here, four bedrooms, of course,
0:03:14 > 0:03:18and this extraordinary colour scheme or colour schemes -
0:03:18 > 0:03:20if that's what you want to call it - continue.
0:03:20 > 0:03:23So, soft of mossy green and in there...
0:03:23 > 0:03:25blue, that's a blue room.
0:03:25 > 0:03:27Erm, very nice.
0:03:27 > 0:03:29Separate bathroom and loo.
0:03:29 > 0:03:31- Er... - HE LAUGHS
0:03:31 > 0:03:33..and again, subtle colours as you might have expected.
0:03:33 > 0:03:37Probably want to knock those together, I guess...
0:03:37 > 0:03:40and repaint.
0:03:40 > 0:03:46A moment of tranquillity amidst the rainforest of colours!
0:03:46 > 0:03:49White bedroom. It actually seems quite dull in comparison.
0:03:49 > 0:03:52So, maybe the master bedroom will surprise us.
0:03:54 > 0:03:57Er...
0:03:57 > 0:03:59No.
0:03:59 > 0:04:03Remember the tune Paint The Whole World With A Rainbow?
0:04:03 > 0:04:06Well, to me, this is just a bungled attempt.
0:04:06 > 0:04:08MUSIC: Karma Chameleon by Culture Club
0:04:08 > 0:04:11# Loving would be easy if your colours were like my dreams
0:04:11 > 0:04:14# Red, gold and green
0:04:14 > 0:04:17# Red, gold and green. #
0:04:17 > 0:04:19So, why, you might be asking,
0:04:19 > 0:04:22has the house got such a relatively low guide price?
0:04:22 > 0:04:25Just 36,000 quid for a four-bedroom house,
0:04:25 > 0:04:28there must be something going on. Well, of course, there is.
0:04:28 > 0:04:31It is that classic non-standard construction.
0:04:31 > 0:04:33Houses that were largely built soon after the Second World War
0:04:33 > 0:04:35to provide pretty quick housing.
0:04:35 > 0:04:38They were sort of thrown up - to coin a phrase -
0:04:38 > 0:04:40by using concrete blocks.
0:04:40 > 0:04:42Often, over time those concrete blocks fail,
0:04:42 > 0:04:45they weren't necessarily used with the right kind of materials -
0:04:45 > 0:04:51steel joists through them and bits of metal started to fail over time
0:04:51 > 0:04:55and as a result, structurally they can be a bit of an issue.
0:04:55 > 0:04:57However, that said, a lot of them are still here.
0:04:57 > 0:05:01When it comes to getting a mortgage, that is when the real problems arise.
0:05:01 > 0:05:02So, as long as you know about it beforehand
0:05:02 > 0:05:05and you're not expecting to be able to get a mortgage then
0:05:05 > 0:05:07they can actually be very good things to buy
0:05:07 > 0:05:10because in terms of price - thank you, rain -
0:05:10 > 0:05:12in terms of price, you get a lot of house for your money.
0:05:12 > 0:05:16A similar house to this would probably be double if it wasn't non-standard construction.
0:05:16 > 0:05:18So, if you're renting this kind of place out,
0:05:18 > 0:05:21then if you pay half the amount for the property
0:05:21 > 0:05:24but you get the same amount of rent you just doubled your yield.
0:05:24 > 0:05:28Maybe non-standard construction is something that isn't so bad after all,
0:05:28 > 0:05:30as long as you know about it.
0:05:30 > 0:05:34There are plenty of precast reinforced concrete homes
0:05:34 > 0:05:37in this area, known as PRCs.
0:05:37 > 0:05:41And there are all sorts of non-standard construction
0:05:41 > 0:05:46for example cob houses, thatched roofs and timber frames.
0:05:46 > 0:05:50If you can sort a specialist mortgage out or pay cash
0:05:50 > 0:05:53it needn't necessarily be an issue.
0:05:53 > 0:05:54For a local perspective,
0:05:54 > 0:05:57we asked along an estate agent from the area.
0:05:57 > 0:05:58If it was my house,
0:05:58 > 0:06:03I would look into getting a PRC company that's licensed
0:06:03 > 0:06:06to do the work on the structure of the property
0:06:06 > 0:06:08to make it mortgageable
0:06:08 > 0:06:11because that can increase the value of it.
0:06:11 > 0:06:15I think to do the work on the structure of the property,
0:06:15 > 0:06:18you're looking to spend in the region of £15,000.
0:06:18 > 0:06:23If done, will the work affect the value significantly?
0:06:23 > 0:06:27I'd look at putting it on the market for £85,000-£90,000.
0:06:27 > 0:06:30If the work wasn't done on the structure of the property,
0:06:30 > 0:06:32you're looking at a 25-30% reduction
0:06:32 > 0:06:34in the value of the property.
0:06:34 > 0:06:38So, you'd probably put on the market for in the region of £60,000-£65,000.
0:06:38 > 0:06:41Well, that is quite an incentive to get the work done.
0:06:41 > 0:06:43What about on the rental market?
0:06:43 > 0:06:45I think this property would achieve
0:06:45 > 0:06:52in the region of £495-£525 per calendar month.
0:06:52 > 0:06:57Well, the simple thing to sort out is new paint inside obviously.
0:06:57 > 0:06:59Slightly more complicated is the whole issue of
0:06:59 > 0:07:00the non-standard construction.
0:07:00 > 0:07:03But if you are aware of it, then maybe this is a really good one
0:07:03 > 0:07:07to go for cos you get a lot of house for the money, that's for sure.
0:07:07 > 0:07:11Let's see who agreed when it went under the hammer.
0:07:11 > 0:07:17Lot 28, a four-bedroomed townhouse that's double glazed.
0:07:17 > 0:07:19Who's got 36 for it?
0:07:19 > 0:07:2036, thank you.
0:07:20 > 0:07:2237 at the back.
0:07:22 > 0:07:2437, 38.
0:07:24 > 0:07:2538, 39.
0:07:25 > 0:07:2739, 40.
0:07:27 > 0:07:2940,000, 41?
0:07:29 > 0:07:32£40,000 is going to go, ladies and gentlemen,
0:07:32 > 0:07:35at £40,000, I'm disappointed with the price
0:07:35 > 0:07:38but if that's the last bid, it's going to get sold
0:07:38 > 0:07:41at £40,000 against you over there.
0:07:41 > 0:07:44At 40,000, once...
0:07:44 > 0:07:4640, where are we? 41.
0:07:46 > 0:07:4841, 42.
0:07:48 > 0:07:5143, 44.
0:07:51 > 0:07:54No? 44,000, sure?
0:07:54 > 0:07:56At 44,000, once...
0:07:56 > 0:07:57twice...
0:07:57 > 0:07:58third time.
0:07:58 > 0:08:01Sold at 44,000, thank you.
0:08:01 > 0:08:06The successful bidders were brothers Eric and Jack from Nuneaton
0:08:06 > 0:08:12who recently bought two other properties besides this £44,000 one.
0:08:12 > 0:08:17I met Eric to discuss his plans for the multicoloured four-bedroom semi.
0:08:18 > 0:08:23- Eric, really good to meet you. - Nice to meet you, as well. - Congratulations.
0:08:23 > 0:08:27So...great house, good price, I think you paid.
0:08:27 > 0:08:29Yeah, 44, very good price.
0:08:29 > 0:08:31Well, clearly the colours didn't put you off, no.
0:08:31 > 0:08:34Well, I didn't see the property before I bought it.
0:08:34 > 0:08:37So, tell me what you are going to do to this one to sort it out then?
0:08:37 > 0:08:39Well, first of all, obviously, everywhere needs stripping off
0:08:39 > 0:08:44and, obviously, ceilings need boarding and replastering
0:08:44 > 0:08:47and then new kitchen, new bathroom,
0:08:47 > 0:08:50wood floor, carpet the stairs.
0:08:50 > 0:08:54Just general everything really. Just bring it up-to-date.
0:08:54 > 0:08:56So, what's the time scale?
0:08:56 > 0:08:59- Well, hopefully, we can get it done within four to six weeks.- OK.
0:08:59 > 0:09:00Obviously, the lesser, the better.
0:09:00 > 0:09:03Mm-hmm. Well, listen, congratulations. Really well done.
0:09:03 > 0:09:06- Thank you.- And I'll look forward to seeing how you transform it.
0:09:09 > 0:09:12Well, how inspirational is that?
0:09:12 > 0:09:16Eric having a portfolio of over 20 properties by the time he's 23 -
0:09:16 > 0:09:18shared with his brother, obviously.
0:09:18 > 0:09:21And you know what, maybe you're watching and you're around that age
0:09:21 > 0:09:22and you think, "Well, I couldn't do that."
0:09:22 > 0:09:25You know what, with the right opportunity, hard work
0:09:25 > 0:09:27and a bit of a break, maybe you could.
0:09:27 > 0:09:28And heading to the auctions is certainly
0:09:28 > 0:09:31a good way to get you started.
0:09:31 > 0:09:32It's a reasonable house.
0:09:32 > 0:09:35It doesn't matter, it appears, that it's non-standard construction.
0:09:35 > 0:09:37In fact, it's a bonus for Eric.
0:09:37 > 0:09:39How will he and his team get on sorting it out?
0:09:39 > 0:09:41You can find out later in the show.
0:09:45 > 0:09:47Welcome to Wolverhampton.
0:09:47 > 0:09:51It was once the industrial powerhouse of the West Midlands.
0:09:51 > 0:09:53But did you know that it's also
0:09:53 > 0:09:56the site of England's first automatic traffic lights?
0:09:56 > 0:09:59Today, a set of modern-day lights stand in that same spot
0:09:59 > 0:10:02with traditional striped poles commemorating this fact.
0:10:02 > 0:10:04MUSIC: Roxanne by The Police
0:10:04 > 0:10:06# You don't have to put on the red light. #
0:10:06 > 0:10:10So, just a 10-minute drive away from the centre of Wolverhampton
0:10:10 > 0:10:12is the property I'm here to see -
0:10:12 > 0:10:15that depends on how you drive and what you're are driving, of course.
0:10:15 > 0:10:19And here it is, it's a three-bedroom semidetached house
0:10:19 > 0:10:22with a guide price of £75,000 plus.
0:10:22 > 0:10:24But what do you get for your money round here?
0:10:24 > 0:10:26I'm going to find out.
0:10:31 > 0:10:35OK, we're in and a really decent-sized reception hall
0:10:35 > 0:10:38with lots of light coming in, as well.
0:10:38 > 0:10:41First reception room has got big bay window
0:10:41 > 0:10:43and they look relatively new, as well.
0:10:43 > 0:10:45Kitchen there, which I will come back to.
0:10:45 > 0:10:47Into the second reception room
0:10:47 > 0:10:52and a window here which is separating the two rooms.
0:10:52 > 0:10:55There is one good thing about this window...
0:10:55 > 0:10:57No, there's nothing good about it at all,
0:10:57 > 0:10:59I am getting rid of it completely.
0:10:59 > 0:11:02If you want two separate rooms, then put some double doors up,
0:11:02 > 0:11:03that wouldn't be a problem.
0:11:03 > 0:11:06My choice would be to open it up completely,
0:11:06 > 0:11:08give yourself lots of space down here.
0:11:08 > 0:11:10You would have to reposition this radiator.
0:11:10 > 0:11:14I can see the perfect place in that corner just over there.
0:11:14 > 0:11:16Or you can go modern -
0:11:16 > 0:11:19there's lots of feature radiators you can put up the wall.
0:11:19 > 0:11:21They're quite popular nowadays.
0:11:21 > 0:11:24Back to that kitchen - now, it is a little bit tight in there
0:11:24 > 0:11:29it's dated and it's tired so you would definitely need a new kitchen.
0:11:29 > 0:11:31And while you're doing that
0:11:31 > 0:11:35why not contemplate taking this wall out, as well?
0:11:35 > 0:11:40Create a kitchen-diner maybe with an island or a breakfast bar.
0:11:40 > 0:11:43But for modern living that would be absolutely perfect.
0:11:43 > 0:11:46Loads of space downstairs, loads of light coming in as well.
0:11:46 > 0:11:51What's upstairs got in store for me?
0:11:51 > 0:11:53So a great little house.
0:11:54 > 0:11:57Yes, it's a little dated and I'm not a fan of the goldfish effect
0:11:57 > 0:12:01in the reception rooms, but there's potential for a re-fit down here.
0:12:01 > 0:12:08# We're just two lost souls swimming in a fish bowl year after year... #
0:12:13 > 0:12:15So upstairs we have got the three bedrooms.
0:12:15 > 0:12:19Two decent size bedrooms, one there and one there.
0:12:19 > 0:12:21And a smaller box bedroom just to my right.
0:12:21 > 0:12:24And this whole house has got an interesting colour scheme and
0:12:24 > 0:12:29that bathroom just there hasn't let me down in a nice shade of mauve.
0:12:29 > 0:12:32But there's a lot of space in here, the rooms are spacey,
0:12:32 > 0:12:37and this house, or these houses, are very well built and very popular.
0:12:37 > 0:12:41The market for this kind of house is very buoyant. I'll tell you why.
0:12:41 > 0:12:45For young professionals who work in the centre of Birmingham it's
0:12:45 > 0:12:47only a 20-minute train journey
0:12:47 > 0:12:50and just ten minutes to the centre of Wolverhampton.
0:12:50 > 0:12:53It's no surprise that investors are snapping this kind of property
0:12:53 > 0:12:55up as quick as they come on the market.
0:12:55 > 0:12:58# The bigger the better, the bigger the better,
0:12:58 > 0:13:01# The bigger the better, the better the bigger... #
0:13:01 > 0:13:04Yes, both inside and outside this house has
0:13:04 > 0:13:06bags of potential for improvement.
0:13:08 > 0:13:11We invited along a local estate agent to
0:13:11 > 0:13:15get his opinion on this cracking little three-bedroom property.
0:13:15 > 0:13:19My first impressions of the property are it's quite an unusual
0:13:19 > 0:13:21layout but the actual accommodation's very, very good.
0:13:21 > 0:13:25The property has got gas central heating and double glazing.,
0:13:25 > 0:13:28I'd finish it off and get double glazing put throughout the property.
0:13:28 > 0:13:31It does need cosmetic work like new kitchen, new bathroom,
0:13:31 > 0:13:33carpets, paintwork and wallpaper etc.
0:13:33 > 0:13:36Many of the properties on this road in this area seem to have
0:13:36 > 0:13:38single-storey extensions so this property could quite
0:13:38 > 0:13:41easily have a single-storey extension to the side.
0:13:41 > 0:13:44There's bit of waste space to the right between the house and the garage.
0:13:44 > 0:13:45So the agent agrees with me
0:13:45 > 0:13:49and thinks this property is perfect to extend at the side.
0:13:49 > 0:13:50But that doesn't come cheap.
0:13:50 > 0:13:53He thinks the work on the extension alone could cost
0:13:53 > 0:13:55anywhere between 10 and £20,000.
0:13:55 > 0:13:59Adding the cost of the refurbishment to the rest of the house,
0:13:59 > 0:14:02which I reckon could easily be another £20,000.
0:14:05 > 0:14:07The agent thinks with a straightforward
0:14:07 > 0:14:12renovation to the house it could sell between 125 and 130 grand.
0:14:12 > 0:14:15So would it be worth investing in that extension?
0:14:17 > 0:14:21If the property was done up and also had the side extension,
0:14:21 > 0:14:24single-storey extension, the property could be worth anything
0:14:24 > 0:14:28between 130 to £140,000 depending on the level of the extension.
0:14:30 > 0:14:32So on those numbers it might not be worth the time
0:14:32 > 0:14:35and the hassle of the extension after all.
0:14:35 > 0:14:38It all hinges on getting the property around the guide
0:14:38 > 0:14:40price which is set at £75,000.
0:14:40 > 0:14:44Otherwise any potential profit would start to fade away.
0:14:45 > 0:14:49What about putting the house on the rental market?
0:14:49 > 0:14:52The rental for the property in this area is typically
0:14:52 > 0:14:54anything between 500 and 550.
0:14:54 > 0:14:57It may be slightly higher than 550 with the extension but obviously it
0:14:57 > 0:15:01depends what sort of accommodation comes with the extension.
0:15:01 > 0:15:04Basically this is a sound and well built house.
0:15:04 > 0:15:07It's got partial double glazing and central heating,
0:15:07 > 0:15:11so they're the plus points. But it definitely needs modernising.
0:15:11 > 0:15:14As for that window separating the two rooms.
0:15:14 > 0:15:15Not quite sure about that.
0:15:15 > 0:15:18But who fancied it when it went under the hammer?
0:15:18 > 0:15:22So we're going to lot 25 which is a vacant freehold semidetached
0:15:22 > 0:15:25property, as you can see there from the photograph.
0:15:25 > 0:15:2660 to start then.
0:15:26 > 0:15:28£60,000.
0:15:28 > 0:15:2950 then.
0:15:29 > 0:15:33Here to be sold. 50,000, sir? Thank you, with the cap at £50,000.
0:15:33 > 0:15:35Do I hear 60 anywhere?
0:15:35 > 0:15:36I'll take 5.
0:15:36 > 0:15:3955, I'll take 60 there, sir, 60.
0:15:39 > 0:15:43After a slow start the bidding soon picked up with a lot of interest.
0:15:43 > 0:15:47We return when the bids have reached £88,000.
0:15:47 > 0:15:4988 bid. 90 now, sir.
0:15:49 > 0:15:5090. 92, sir.
0:15:50 > 0:15:5392. 94.
0:15:53 > 0:15:54Thousand pounds?
0:15:54 > 0:15:57Don't miss it for a thousand pounds, sir. If you want it, buy it. Good.
0:15:57 > 0:15:5893.
0:15:58 > 0:16:0094, sir, the same applies to you.
0:16:00 > 0:16:02Have another thousand, sir.
0:16:02 > 0:16:0394. 95.
0:16:03 > 0:16:04No?
0:16:04 > 0:16:05At £94,000.
0:16:05 > 0:16:09Gentleman seated here. £94,000, it is being sold.
0:16:09 > 0:16:11Fresh bidder, another one at 95.
0:16:11 > 0:16:1396, sir.
0:16:13 > 0:16:14Have 96, sir.
0:16:14 > 0:16:1696. 97.
0:16:16 > 0:16:17OK. Good try.
0:16:17 > 0:16:1996. Being sold.
0:16:19 > 0:16:21One, two, three, I'm going to dwell no longer.
0:16:21 > 0:16:22Your bid sir.
0:16:22 > 0:16:23At £96,000.
0:16:23 > 0:16:27- GAVEL BANGS - And your number, sir, thank you, is 267.
0:16:31 > 0:16:35With that successful bid of 96 grand, 21,000 over the guide price,
0:16:35 > 0:16:37was local lad Carl.
0:16:37 > 0:16:40This was his first property that he'd bought at auction,
0:16:40 > 0:16:43so I was curious to see what he had planned for the place.
0:16:45 > 0:16:48- Carl, nice to meet you. - Nice to meet you.- Congratulations.
0:16:48 > 0:16:51Before we get started I hear that you supported, or support,
0:16:51 > 0:16:54- one of my old teams. - Yep. So that's Celtic.
0:16:54 > 0:16:57Good lad, you see, you had a choice or two and you got it right.
0:16:57 > 0:16:59Right, first you tell us about this house.
0:16:59 > 0:17:01Why did you particularly want this house?
0:17:01 > 0:17:06Well, I live just up the road and we came past, saw the signs up,
0:17:06 > 0:17:09so it's something we'd been thinking about dabbling in.
0:17:09 > 0:17:14So I thought I'll give it a go. So I went to the auction. First time.
0:17:14 > 0:17:15And managed to get it.
0:17:15 > 0:17:18Now you've got it, what are your plans for this house?
0:17:18 > 0:17:21Well, the window's definitely going.
0:17:22 > 0:17:23That strange thing.
0:17:25 > 0:17:29My plans are to knock the kitchen, remove the wall there.
0:17:30 > 0:17:32Block a couple of the doors up
0:17:32 > 0:17:35and make one big kitchen/diner at the back.
0:17:35 > 0:17:39I'm going to give it new doors, new kitchen, new bathroom.
0:17:39 > 0:17:41I'm going to gut it and just start from fresh.
0:17:41 > 0:17:43So, Carl, have you thought about extending?
0:17:43 > 0:17:49Not at the moment. I want to turn it around in about six weeks because I live just up
0:17:49 > 0:17:53the road and I'm having an extension done on my house at the moment.
0:17:53 > 0:17:55My plan is to move into here whilst,
0:17:55 > 0:17:58because we've got to move out of our house.
0:17:58 > 0:18:02Whoa. Two renovations at once and a house move?
0:18:02 > 0:18:05Carl clearly doesn't mind a challenge.
0:18:05 > 0:18:08He's set himself a very brisk six-week turnaround.
0:18:08 > 0:18:11He'll need to avoid any delays to get this one ready for him
0:18:11 > 0:18:14and his wife Sharon to move into.
0:18:14 > 0:18:16Carl knows a thing or two about delays,
0:18:16 > 0:18:20because his company supplies labour to the traffic management industry.
0:18:20 > 0:18:22So he's the one to blame for all the traffic cones.
0:18:22 > 0:18:27Now Carl said this was his first project, which isn't strictly true.
0:18:29 > 0:18:34I've got property abroad, I've got an apartment in Turkey
0:18:34 > 0:18:37and I've got some land in the Cayman Islands which I'm about to
0:18:37 > 0:18:40- start building a villa in.- Really?
0:18:40 > 0:18:42Yes, but this is my first one in England.
0:18:42 > 0:18:45So, I've got to get back to the Cayman Islands.
0:18:45 > 0:18:47Why the Cayman Islands?
0:18:47 > 0:18:50I just, I saw it advertised and I went over, viewed the land,
0:18:50 > 0:18:52saw the island, thought it was beautiful.
0:18:52 > 0:18:55So I thought "this is where I want to retire."
0:18:55 > 0:18:58- You're not messing about, are you? - No, that's my next project.
0:18:58 > 0:19:00- Spreading your wings. - Yes, just a bit.
0:19:00 > 0:19:04- I wish you all the best, Carl. - Thank you.- Good luck.- Thanks.
0:19:04 > 0:19:08I think Carl has chosen his first property in this country very wisely.
0:19:08 > 0:19:10But he's put himself under a bit of pressure,
0:19:10 > 0:19:13cos he wants to move in here while he's doing his own house.
0:19:13 > 0:19:16How will he get on? You can find out later in the programme.
0:19:18 > 0:19:20Coming up in Plaistow, East London.
0:19:20 > 0:19:25Bucks and his builders are raring to go on this two-bed terrace property.
0:19:25 > 0:19:27There's a team ready already.
0:19:30 > 0:19:33Whilst over in Wolverhampton, Carl's first auction buy
0:19:33 > 0:19:35isn't as easy as he first imagined.
0:19:35 > 0:19:37Everything from day one was challenging.
0:19:40 > 0:19:43Welcome back to Bolsover, the Derbyshire town
0:19:43 > 0:19:48I visited earlier to check out this four-bedroom townhouse.
0:19:48 > 0:19:52It sold at auction for £44,000.
0:19:52 > 0:19:56A former local authority property made from pre-cast reinforced concrete.
0:19:56 > 0:19:59In terms of price, you get a lot of house for your money.
0:19:59 > 0:20:01A similar house to this would probably be double
0:20:01 > 0:20:03if it wasn't non-standard construction.
0:20:03 > 0:20:05So if you're renting this kind of place out,
0:20:05 > 0:20:08then if you pay half the amount for the property
0:20:08 > 0:20:12but you get the same amount of rent, you just doubled your yield.
0:20:12 > 0:20:16Eric, the new owner, with his brother Jack, knows all about yield.
0:20:16 > 0:20:21Their business ethos is to earn a 10% yield on investments.
0:20:21 > 0:20:25I wondered how the boys got started in the property portfolio stakes.
0:20:25 > 0:20:29- We sort of kind of fell into it a little bit.- How?
0:20:29 > 0:20:31He's a plumber, I'm an electrician
0:20:31 > 0:20:34and we would...I'd just come back from travelling,
0:20:34 > 0:20:38so I just wanted to, I wanted to get into it anyway and my dad was
0:20:38 > 0:20:43lucky enough to have a bit of money to spare us to get us started.
0:20:43 > 0:20:46So we've just carried on and we've done quite well.
0:20:46 > 0:20:49They would certainly have to do quite well in the repainting
0:20:49 > 0:20:53stakes, because the internal decor looked like it had been
0:20:53 > 0:20:56inspired by this Dolly Parton song.
0:20:56 > 0:21:02MUSIC: Coat Of Many Colours by Dolly Parton
0:21:02 > 0:21:05So has this turned into a full-time job for you both now?
0:21:05 > 0:21:07Yes, a full-time job, yes, it has been since we started.
0:21:07 > 0:21:11And we've got three lads that work for us. One's a builder.
0:21:11 > 0:21:14One's a joiner and the other one does everything as well,
0:21:14 > 0:21:15builder, joiner.
0:21:15 > 0:21:19So we've got everything between us that we need to do.
0:21:20 > 0:21:25They predicted a maximum refurbishment time of two months.
0:21:25 > 0:21:27Well, we're back six months later
0:21:27 > 0:21:32and everything's complete apart from tidying up the back garden.
0:21:32 > 0:21:36So let's see what has changed in that time for the entrepreneur
0:21:36 > 0:21:41siblings and their company, which is a mere two years old.
0:21:41 > 0:21:44# I'm ready, I'm ready for it... #
0:21:44 > 0:21:46Well, the kitchen's ready for a chef.
0:21:46 > 0:21:49And there is even integrated cooking appliances.
0:21:55 > 0:21:59If I said the lounge previously had a bold colour scheme,
0:21:59 > 0:22:01I don't think many people would argue.
0:22:01 > 0:22:04Now it's as neutral as Switzerland.
0:22:04 > 0:22:07The lads may be young, but they know their stuff.
0:22:10 > 0:22:13MUSIC: Ready by Kodaline
0:22:30 > 0:22:32Upstairs I'm pleased to note the removal of the wall
0:22:32 > 0:22:37between the bathroom and toilet, making a more convivial convenience.
0:22:37 > 0:22:41How healthy is the £16,000 budget forecast?
0:22:41 > 0:22:45As it stands we're currently on £15,200.
0:22:45 > 0:22:48We still have the garden to do so it should be spot on.
0:22:49 > 0:22:53We called on two local estate agents to give us their opinions
0:22:53 > 0:22:54and valuations.
0:22:54 > 0:22:58First the agent we saw before work began.
0:22:58 > 0:23:02First impressions of the property are that it's really good spec,
0:23:02 > 0:23:05really nice kitchen and bathrooms.
0:23:05 > 0:23:08Lovely impression, it's good finish, you can
0:23:08 > 0:23:11walk straight into the property and everything's done.
0:23:11 > 0:23:14So literally you can move in and just put your furniture in.
0:23:14 > 0:23:17So very impressed with the finishing.
0:23:17 > 0:23:20We know the brothers' company is founded on buy to let
0:23:20 > 0:23:23properties, but out of interest what potential profit could
0:23:23 > 0:23:27they make on a £60,000 investment if they sold?
0:23:27 > 0:23:30I think on the sales market you'd be looking to
0:23:30 > 0:23:34achieve in the region of 70 to potentially £75,000.
0:23:34 > 0:23:38I think on the sales market this property would achieve £80,000.
0:23:38 > 0:23:41They certainly seem to have added value to this house,
0:23:41 > 0:23:45despite not tackling the non-standard construction issue,
0:23:45 > 0:23:50with the potential profit of £20,000 minus taxes and expenses.
0:23:50 > 0:23:52So could Eric be tempted?
0:23:52 > 0:23:54I prefer the long-term investment.
0:23:54 > 0:23:57I'm not really in it to make a quick bit of money.
0:23:57 > 0:24:02OK, the boys always aim for a 10% yield. How have they done this time?
0:24:02 > 0:24:06I think the rental value on this property would be £500 per
0:24:06 > 0:24:07calendar month.
0:24:07 > 0:24:10In the current rental market I'd expect this property to
0:24:10 > 0:24:13achieve in the region of 500 to 525.
0:24:13 > 0:24:16At the top figure that's a 10.5% yield,
0:24:16 > 0:24:18but Eric has already got a tenant.
0:24:18 > 0:24:21So what did he settle for?
0:24:21 > 0:24:25The estate agent that I did go with actually managed to get 595
0:24:25 > 0:24:27so I snapped his hand off.
0:24:27 > 0:24:30Well, I have a feeling that we will be seeing a lot more of Eric
0:24:30 > 0:24:32and Jack in the future.
0:24:36 > 0:24:38MUSIC: Rock the Casbah by The Clash
0:24:38 > 0:24:42This is East London's Plaistow, the birthplace of Edward Harry Temme.
0:24:42 > 0:24:44Now you may not have heard of that name,
0:24:44 > 0:24:47but he became a member of the Plaistow United swimming club
0:24:47 > 0:24:51and was the first man to swim across the Channel in both directions.
0:24:53 > 0:24:57Time to find out if the property I'm here to see today will sink or swim.
0:24:59 > 0:25:01Well, this street is well positioned,
0:25:01 > 0:25:04there's a school just across the road, you can probably hear it.
0:25:04 > 0:25:08And it's also close to local amenities as well as Newham
0:25:08 > 0:25:11University Hospital, which means it'll be a popular rental spot.
0:25:11 > 0:25:15Now the property I'm here to see is a two-bed mid-terrace
0:25:15 > 0:25:19and it had a guide price of £195,000.
0:25:19 > 0:25:21Looks rather worse for wear on the outside.
0:25:21 > 0:25:25Let's test the water and see what it's like on the inside.
0:25:30 > 0:25:33Oh, and not much better on the inside.
0:25:33 > 0:25:37It's in a real state of disrepair, my goodness.
0:25:37 > 0:25:39First reception room's through here.
0:25:39 > 0:25:42I mean if you can see beyond it, loads of character,
0:25:42 > 0:25:45lots of little dado rails and Bakelites everywhere.
0:25:45 > 0:25:51But um, through here into the second little reception area. Goodness.
0:25:51 > 0:25:56It just gets a whole lot worse. Wow. Fire damage in here is incredible.
0:25:56 > 0:25:59I mean look, it's just peeling wallpaper.
0:25:59 > 0:26:03You can almost smell the burning still. It's not nice at all.
0:26:03 > 0:26:06So much so that the cobwebs up there are black,
0:26:06 > 0:26:10they're just black hanging cobwebs. It's a very eerie room.
0:26:10 > 0:26:15I mean look, the plaster is just coming off. Goodness.
0:26:15 > 0:26:19Through here we've got the kitchen and the bathroom.
0:26:19 > 0:26:20If you can call it that.
0:26:20 > 0:26:24You really do need to start over again with this house,
0:26:24 > 0:26:26it's got a really eerie feeling to it.
0:26:26 > 0:26:28MUSIC: Thriller by Michael Jackson
0:26:28 > 0:26:31Up on the first floor and although dated, the fire damage has not
0:26:31 > 0:26:34left quite such a mark, and there is still some lovely character.
0:26:34 > 0:26:36We've got two good sized bedrooms
0:26:36 > 0:26:39but still no space for a bathroom that I can see.
0:26:42 > 0:26:45On a positive note though, the garden is a good size,
0:26:45 > 0:26:48and with a bit of tender loving care it could easily be
0:26:48 > 0:26:51turned into a lovely little oasis in the city.
0:26:52 > 0:26:56So certainly a lot to think about here for any potential buyer.
0:26:56 > 0:26:59We invited along a local estate agent to get her
0:26:59 > 0:27:02opinion on this somewhat troubled terrace house.
0:27:04 > 0:27:07Having a look around, I think the house is a very good project.
0:27:07 > 0:27:10It's a good investment for the area
0:27:10 > 0:27:14and I could see the results in this house.
0:27:14 > 0:27:17It could be an option to extend the house.
0:27:17 > 0:27:22Having a loft conversion, of course subject to building regulations,
0:27:22 > 0:27:27or if it's extended at the back, planning permission.
0:27:27 > 0:27:32And I could potentially see a four or five bedroom house,
0:27:32 > 0:27:36but with a very small garden left at the back.
0:27:36 > 0:27:39Yes, an extension would compromise the back garden space.
0:27:39 > 0:27:42But would it see big returns on the market?
0:27:42 > 0:27:45Well, kept as a two-bed without an extension,
0:27:45 > 0:27:47but with a full refurbishment,
0:27:47 > 0:27:53the agent thought the house could be worth 320 to £340,000.
0:27:53 > 0:27:56And rent for in the region of 1,300 to £1,400 per month.
0:27:57 > 0:27:59But, if extended...
0:28:00 > 0:28:03As a four/five bedroom house this property could
0:28:03 > 0:28:10resale at the market price in between £410,000 to £430,000.
0:28:10 > 0:28:14Also on the lettings market this property could let
0:28:14 > 0:28:21out at the price range in between £2,000 to £2,200 per calendar month.
0:28:21 > 0:28:24Well there's plenty of work to be done with this terrace
0:28:24 > 0:28:26but it does have a lot of potential,
0:28:26 > 0:28:29and it could be made bigger as well as better.
0:28:29 > 0:28:31So who was ready to dive straight into the work
0:28:31 > 0:28:33and make a splash with this lot?
0:28:33 > 0:28:35Let's head to auction and find out.
0:28:36 > 0:28:41So, move on to lot 33. Two bed mid-terraced house.
0:28:41 > 0:28:43Where do you want to start?
0:28:43 > 0:28:45200? There. 200.
0:28:45 > 0:28:46205 anywhere?
0:28:46 > 0:28:49205, on my left, 205.
0:28:49 > 0:28:51210, sir.
0:28:51 > 0:28:53215?
0:28:53 > 0:28:54215. 220.
0:28:54 > 0:28:56225.
0:28:56 > 0:28:58230. 235.
0:29:00 > 0:29:03With lots of interest in the property bids continued.
0:29:03 > 0:29:07We returned when bids had reached £265,000.
0:29:07 > 0:29:09265.
0:29:09 > 0:29:10267.
0:29:10 > 0:29:12269.
0:29:13 > 0:29:16Back to you, 267, here.
0:29:16 > 0:29:18269. 269.
0:29:18 > 0:29:20270.
0:29:20 > 0:29:22271.
0:29:22 > 0:29:25Oh, come on, one more go. 271.
0:29:25 > 0:29:28270, first time.
0:29:28 > 0:29:31Second time, third and last time.
0:29:31 > 0:29:32If you're all done.
0:29:32 > 0:29:35- GAVEL BANGS - Sold at 270.
0:29:36 > 0:29:39And the successful bidder was Bucks.
0:29:39 > 0:29:40Now you may recognise his face,
0:29:40 > 0:29:45and that's because he met Martin in Liverpool back in 2009.
0:29:45 > 0:29:50As well as property developing, he also owns a chain of estate agents.
0:29:50 > 0:29:52He joined me back at the property to tell me
0:29:52 > 0:29:54more about his plans for his latest purchase.
0:29:54 > 0:29:58- Bucks, congratulations.- Thank you very much.- Lovely to meet you.
0:29:58 > 0:30:01So, tell me, why did you want to buy this at auction.
0:30:01 > 0:30:04Um, mainly really because at auction, you know
0:30:04 > 0:30:08that if you've won a property you're going to get it within the 28 days.
0:30:08 > 0:30:11Cos I've sort of hunted around with estate agents
0:30:11 > 0:30:14and there's a lot of vendors faffing around, not actually wanting
0:30:14 > 0:30:17to sell at the price and you're getting gazumped at the end.
0:30:17 > 0:30:20- And you should know that better than anybody.- Yes.- Being an estate agent.
0:30:20 > 0:30:24Yes. So I just wanted the certainty to know that I can invest quickly
0:30:24 > 0:30:27and get the project done as soon as possible.
0:30:27 > 0:30:29So how many bedrooms in total are you looking at?
0:30:29 > 0:30:31Initially we've tried to get six bedrooms,
0:30:31 > 0:30:34six bathrooms out of this small two-bed property.
0:30:34 > 0:30:38But I think it may be six or five rooms with five bathrooms.
0:30:38 > 0:30:39We're not 100% sure yet,
0:30:39 > 0:30:42depends on how much planning permission we get on the back.
0:30:42 > 0:30:45So you're just going for maximising everything.
0:30:45 > 0:30:48Just max it out, as many as much as you can physically do.
0:30:48 > 0:30:50Yes this is most likely going to be a HMO property
0:30:50 > 0:30:52so we're looking at all the regulations
0:30:52 > 0:30:56and making sure that each room comes in at least nine square metres.
0:30:56 > 0:30:59But we're looking for an en suite room in every single room,
0:30:59 > 0:31:01because that's what the market demands now.
0:31:01 > 0:31:04And how long do you think something like that will take you to
0:31:04 > 0:31:05get done from planning permission?
0:31:05 > 0:31:08Well we're going to start works immediately whilst
0:31:08 > 0:31:09we wait for the planning permission,
0:31:09 > 0:31:12cos as you can see there's a lot of internal works that can be done.
0:31:12 > 0:31:13So we want to be efficient.
0:31:13 > 0:31:17And I'm hoping to actually complete the whole process within three
0:31:17 > 0:31:20- and a half months.- So you've got a team ready on standby.
0:31:20 > 0:31:22Yes, there's a team ready already.
0:31:22 > 0:31:26So how much do you think it's going to cost you to do a job like this?
0:31:26 > 0:31:28I mean can you price something like this up, Bucks?
0:31:28 > 0:31:32Yes, you can. Systematically, you can if you put it into phases
0:31:32 > 0:31:35and work out the costings. We've already done that,
0:31:35 > 0:31:37we estimate between 80 to 100,000.
0:31:37 > 0:31:41But we're not sure until we know how much space we've got in the back and the top.
0:31:41 > 0:31:45And what sort of rentals will you be charging that single person?
0:31:45 > 0:31:48Again it will depend on the square footage cos we'll work
0:31:48 > 0:31:49everything out on that.
0:31:49 > 0:31:51Between 600 to £800 a month.
0:31:51 > 0:31:54And will you just have, you know, people applying like that
0:31:54 > 0:31:57from these rooms, do you think they'll just fly out the window?
0:31:57 > 0:31:59Yes, I'm pretty sure as soon as we've got the photographs done,
0:31:59 > 0:32:01I'm confident we'll get it out within an hour.
0:32:01 > 0:32:06Really?! Within one hour. You will rent this place out within an hour.
0:32:06 > 0:32:08- Yes, through my estate agency of course.- Seriously?!- Yes.
0:32:08 > 0:32:10That's incredible.
0:32:10 > 0:32:11- You're really confident of that. - Yes.
0:32:11 > 0:32:14Bucks, it's been lovely meeting you today. Congratulations.
0:32:14 > 0:32:16- Thank you very much.- Thank you.
0:32:16 > 0:32:19I cannot wait to see how Bucks transforms this
0:32:19 > 0:32:23terrace from a two-bed into a six-bedroom property. Wow!
0:32:23 > 0:32:26But what I really want to know is will all the rooms really be
0:32:26 > 0:32:31rented out in only one hour? The clock is ticking.
0:32:31 > 0:32:34Join me later on in the programme and you can find out
0:32:34 > 0:32:36if that really does happen.
0:32:40 > 0:32:44Well, renovating property can involve some tricky decisions.
0:32:44 > 0:32:48Do you go for a high-spec finish but risk blowing the budget?
0:32:48 > 0:32:50Or you could go for that no frills approach,
0:32:50 > 0:32:53but perhaps not attract the value you really want.
0:32:53 > 0:32:55Yes, we've found out how one property got on,
0:32:55 > 0:32:56but what about the other two?
0:32:56 > 0:32:58Let's find out.
0:33:01 > 0:33:03Back to Wolverhampton nowhere I visited this three-bedroom
0:33:03 > 0:33:05semidetached house,
0:33:05 > 0:33:12guided at £75,000+ that was in serious need of an update.
0:33:12 > 0:33:15# Blue, blue, electric blue,
0:33:15 > 0:33:19# That's the colour of my room where I will live... #
0:33:22 > 0:33:25And I'm not just talking about the colour scheme.
0:33:25 > 0:33:28There is one good thing about this window.
0:33:28 > 0:33:30No there's nothing good about it at all,
0:33:30 > 0:33:32I am getting rid of it completely.
0:33:33 > 0:33:37That wasn't the only improvement I'd like to see here.
0:33:37 > 0:33:39I thought the wall dividing the kitchen and the back
0:33:39 > 0:33:43reception room could go to accommodate a large kitchen/diner.
0:33:43 > 0:33:46This potential wasn't lost on Carl.
0:33:46 > 0:33:49He snapped up his first auction property for 96 grand.
0:33:49 > 0:33:51And he wasn't messing about.
0:33:51 > 0:33:54Well, the window's definitely going.
0:33:54 > 0:33:56That strange thing.
0:33:56 > 0:34:01And then my plans are to knock the kitchen,
0:34:01 > 0:34:05remove the wall there and make one big kitchen/diner at the back.
0:34:05 > 0:34:08New bathroom, I'm going to gut it and just start from fresh.
0:34:08 > 0:34:09So how did he get on?
0:34:10 > 0:34:13We returned three months later to have a look.
0:34:21 > 0:34:24Yes, as intended Carl has opened up the kitchen
0:34:24 > 0:34:28and back reception room to create this spacious kitchen/diner.
0:34:28 > 0:34:30It is still awaiting finishing touches,
0:34:30 > 0:34:33but once complete it's going to be a great family space.
0:34:35 > 0:34:36Carl didn't disappoint.
0:34:36 > 0:34:39He did away with that dividing window between the two
0:34:39 > 0:34:40reception rooms.
0:34:41 > 0:34:44We had to get rid of that window. Without a doubt.
0:34:44 > 0:34:45It just didn't look right.
0:34:45 > 0:34:48It was dated, I couldn't believe that anybody would put
0:34:48 > 0:34:49something like that in there.
0:34:49 > 0:34:52So we've got rid of that and put the double doors in.
0:34:52 > 0:34:55And I think it flows through quite nicely now.
0:34:55 > 0:34:57Agreed. Looking much better I think.
0:34:57 > 0:35:01He's also been busy upstairs saying goodbye to that mauve bathroom
0:35:01 > 0:35:05suite and replacing it with a contemporary one in neutral colours.
0:35:06 > 0:35:09The bathroom was very dated and old-fashioned,
0:35:09 > 0:35:12so what we did, we stripped it out completely.
0:35:12 > 0:35:17We put in a new bathroom suite with a P shaped bath and a shower over.
0:35:17 > 0:35:19We've had it re-tiled.
0:35:19 > 0:35:20I'm very happy with it,
0:35:20 > 0:35:23it's definitely made a great improvement to the house.
0:35:23 > 0:35:26He has also updated the three bedrooms which have been
0:35:26 > 0:35:30stripped back to a shell, re-boarded, re-plastered
0:35:30 > 0:35:32and painted, again in neutral tones.
0:35:34 > 0:35:36With carpets down they are now looking brand-new.
0:35:39 > 0:35:43Now the hard work's over, what was his biggest challenge?
0:35:43 > 0:35:46Everything from day one was challenging. It's been quite
0:35:46 > 0:35:50stressful cos of doing this house, doing my own house,
0:35:50 > 0:35:52trying to run a business at the same time.
0:35:52 > 0:35:55It's been a lot more stressful than I thought it would be.
0:35:55 > 0:35:57Before the renovations began Carl
0:35:57 > 0:36:01and his builder planned to complete the works in six weeks,
0:36:01 > 0:36:04allowing him and his family to move into the house
0:36:04 > 0:36:08while renovations were being done on their house up the road.
0:36:08 > 0:36:10So, did all go to plan?
0:36:10 > 0:36:14We were planning to turn this round pretty quick and move in
0:36:14 > 0:36:19but that didn't happen cos it went a lot slower than we thought it would.
0:36:19 > 0:36:21So we didn't get to move in.
0:36:21 > 0:36:25Yes, that six week timescale ended up growing to three months
0:36:25 > 0:36:28and Carl and family ended up staying with their mate, Cheryl,
0:36:28 > 0:36:31while renovations were being done on their house.
0:36:31 > 0:36:34So did that 15 grand budget hold up any better?
0:36:34 > 0:36:37My budget's come in just a little bit under than what I thought.
0:36:37 > 0:36:39It's come in at about 14,000.
0:36:40 > 0:36:46Some good news. That takes his total spend on the property to £110,000.
0:36:50 > 0:36:52But what will the property experts think?
0:36:52 > 0:36:55We invited along two local estate agents to find out
0:36:55 > 0:36:58if Carl is going to be quids in on his first auction property.
0:36:59 > 0:37:03My first impressions of the property is that the purchaser has
0:37:03 > 0:37:07obviously thought about what he wanted to do with the property.
0:37:07 > 0:37:10I like the fact that you have an open-plan kitchen/diner
0:37:10 > 0:37:16and that these doors open out, which gives lots of family use.
0:37:16 > 0:37:18The standard of finish is very good throughout,
0:37:18 > 0:37:20there are certain snaggings that need doing, like some more
0:37:20 > 0:37:24plaster in the pipework within the kitchen and just overall decor.
0:37:24 > 0:37:28But I think from that it will finish off quite a nice property throughout.
0:37:28 > 0:37:30So let's get those valuations and see
0:37:30 > 0:37:33if Carl could be on to a winner with his debut auction property.
0:37:33 > 0:37:35Let's start with the rental.
0:37:35 > 0:37:39I think this property would achieve on the rental market
0:37:39 > 0:37:42a rental of £650 per calendar month.
0:37:42 > 0:37:44I think this property could achieve on the rental market
0:37:44 > 0:37:48anything in the region of £575 to £600 a calendar month.
0:37:49 > 0:37:52That's a yield of 7%. Not bad at all.
0:37:52 > 0:37:55But Carl's always intended on using this place to
0:37:55 > 0:37:59house his employees to save him money on rent elsewhere.
0:37:59 > 0:38:01He plans to hold on to the property for a few
0:38:01 > 0:38:03years before selling at the right time.
0:38:03 > 0:38:05So let's get those sales valuations.
0:38:07 > 0:38:09I would look to put this property back on to the sales
0:38:09 > 0:38:13market at a price of £152,000.
0:38:13 > 0:38:15On the current sales market this property could
0:38:15 > 0:38:19achieve in the region of 140 to £145,000.
0:38:19 > 0:38:22Not bad, actually. They were higher than what I thought.
0:38:22 > 0:38:25I was thinking more around like 130.
0:38:25 > 0:38:30So, yes, quite pleasantly surprised there.
0:38:30 > 0:38:32Carl's impressed and I would be too.
0:38:32 > 0:38:34That top valuation could see him
0:38:34 > 0:38:39pocket a profit of 42 grand before taxes and fees.
0:38:39 > 0:38:42So could he be tempted to take the money and run?
0:38:42 > 0:38:44I'm still going to stick to my original plan,
0:38:44 > 0:38:49put the guys in here, maybe sit on it for about five years
0:38:49 > 0:38:52and then see what the market's like then.
0:38:52 > 0:38:54See if I want to sell then.
0:38:54 > 0:38:58So after a successful first step into the property auction
0:38:58 > 0:39:03- market would Carl do it again?- Yes, I would buy another investment property.
0:39:03 > 0:39:06I'm actually going to another auction in two days' time.
0:39:08 > 0:39:11MUSIC: Red Right Hand by Nick Cave & The Bad Seeds
0:39:11 > 0:39:15We're back to Plaistow in East London where I visited this
0:39:15 > 0:39:20two-bedroom mid-terrace house with a guide price of £195,000.
0:39:20 > 0:39:23From the outside it was clear that this place was going to need
0:39:23 > 0:39:25some attention, but on the inside...
0:39:25 > 0:39:28It just gets a whole lot worse. Wow.
0:39:28 > 0:39:32Fire damage in here is incredible, I mean look,
0:39:32 > 0:39:35it's just peeling wallpaper. You can almost smell the burning still.
0:39:35 > 0:39:38You really do need to start over again with this house.
0:39:38 > 0:39:40It's got a really eerie feeling to it.
0:39:42 > 0:39:46Yes. This house was going to need a lot of work.
0:39:46 > 0:39:49Upstairs the two bedrooms weren't suffering from the fire
0:39:49 > 0:39:52damage like the downstairs and were a good size,
0:39:52 > 0:39:55but would still need a complete overhaul.
0:39:55 > 0:39:58Then there was the lean-to out the back where the level of decay
0:39:58 > 0:40:00was beyond words.
0:40:01 > 0:40:04Yes, that is a tree growing out of a window box.
0:40:04 > 0:40:07But all that didn't deter Bucks who bought
0:40:07 > 0:40:10the house at auction for 270,000.
0:40:10 > 0:40:13He was a Homes Under The Hammer veteran having met Martin
0:40:13 > 0:40:17a few years back when renovating a property in Liverpool.
0:40:17 > 0:40:20With a chain of estate agents I had the feeling that he would
0:40:20 > 0:40:24know how to turn this dilapidated property into a money maker.
0:40:24 > 0:40:28We've tried to get six bedrooms, six bathrooms out of this small two-bed
0:40:28 > 0:40:33property but I think it may be six or five rooms with five bathrooms.
0:40:33 > 0:40:34We're not 100% sure yet,
0:40:34 > 0:40:38depends on how much planning permission we get on the back.
0:40:38 > 0:40:39Yes, you heard right,
0:40:39 > 0:40:43Bucks planned to convert this two-bedder into a five or six
0:40:43 > 0:40:48bedroom HMO property, extending into the loft and out the back.
0:40:48 > 0:40:50Using his team of builders he planned to have the work
0:40:50 > 0:40:55complete in three and a half months and on a budget of 80 to 100,000.
0:40:57 > 0:40:59Once I'm done with it you won't recognise the property
0:40:59 > 0:41:01because it's going to be totally ripped out.
0:41:01 > 0:41:05We returned six months later to find out how he got on.
0:41:14 > 0:41:16Well, this is quite the transformation.
0:41:16 > 0:41:19As intended Bucks has demolished the old lean-to,
0:41:19 > 0:41:23not to mention uprooting that curious looking tree and extending
0:41:23 > 0:41:27out the back into the garden to create this huge kitchen/diner.
0:41:27 > 0:41:29Perfect for a house this size.
0:41:30 > 0:41:33Next door is the communal downstairs shower room.
0:41:33 > 0:41:36It is small but well formed with a shower unit
0:41:36 > 0:41:39and finished with modern neutral tones.
0:41:40 > 0:41:42Through into the front of the house,
0:41:42 > 0:41:46this is the first bedroom complete with en suite.
0:41:46 > 0:41:49Bucks' builders have gutted this place and it now looks
0:41:49 > 0:41:53brand-new with electrics, plumbing, flooring and fresh decor.
0:41:56 > 0:42:00Upstairs on the first floor the two dreary looking bedrooms have
0:42:00 > 0:42:04been updated and modified to accommodate en-suites.
0:42:04 > 0:42:07Like the rest of the property it's been finished to an excellent
0:42:07 > 0:42:09standard. But that's not all.
0:42:09 > 0:42:13Bucks has also extended up into the roof to create yet two more
0:42:13 > 0:42:16bedrooms, again with their own bathrooms,
0:42:16 > 0:42:21taking the total in this house to five bedrooms and six bathrooms.
0:42:21 > 0:42:25This house is barely recognisable from the eerie dilapidated
0:42:25 > 0:42:28shell it was before.
0:42:28 > 0:42:31Well we've literally taken everything out of the property
0:42:31 > 0:42:33including the roof.
0:42:33 > 0:42:35The floors have been lowered as well
0:42:35 > 0:42:38and the property has obviously been extended on the back.
0:42:39 > 0:42:42And internally it's just been totally revamped.
0:42:43 > 0:42:45Oh, yes, it certainly has.
0:42:45 > 0:42:49Turning what was a two-bedroom house into a five-bedroom is no
0:42:49 > 0:42:50small feat.
0:42:50 > 0:42:52So what was the biggest challenge Bucks
0:42:52 > 0:42:55and his builders faced with this renovation?
0:42:55 > 0:42:59I think the biggest problem with the renovation or the project was
0:42:59 > 0:43:02actually getting the layout correct.
0:43:02 > 0:43:05Cos obviously we wanted to make sure the property appeals to renters
0:43:05 > 0:43:10and also possibly for if I was to sell it, to sell it to a family.
0:43:10 > 0:43:12So I think I've got it bang on.
0:43:13 > 0:43:18Bucks estimated it would cost between 80 to 100,000 to complete.
0:43:18 > 0:43:21But in the end it's cost him around £90,000.
0:43:22 > 0:43:27So I think the total spend to date is about £365,000 including
0:43:27 > 0:43:29all the fees.
0:43:29 > 0:43:32How did his original timescale for the renovation pan out?
0:43:32 > 0:43:39It's now taken five months, um, from the original three-month projection.
0:43:39 > 0:43:40Purely due to planning permission
0:43:40 > 0:43:44and making sure that we've got the correct procedures in place
0:43:44 > 0:43:47with the council and building regulations.
0:43:47 > 0:43:49So a couple of months over but now that's complete,
0:43:49 > 0:43:51what will the experts think?
0:43:53 > 0:43:56We invited along two local estate agents to see
0:43:56 > 0:44:02if Bucks has turned a profit on his £365,000 investment.
0:44:02 > 0:44:04Let's start with the one who saw it the last time.
0:44:05 > 0:44:08This is my second time inside this property
0:44:08 > 0:44:11and I can say it's completely different.
0:44:12 > 0:44:15The layout is very good considering there are five
0:44:15 > 0:44:21bedrooms at the moment, transformed from a two-bedroom terraced house.
0:44:21 > 0:44:26So it is impressive how such a small house became such a big one.
0:44:27 > 0:44:31Right now property demand in this area is at its all time high.
0:44:31 > 0:44:35We have many clients looking for properties with nothing to
0:44:35 > 0:44:38provide for them, so if something like this came on to the market
0:44:38 > 0:44:41we'd be able to get people looking at it straight away.
0:44:41 > 0:44:45So will that high demand be reflected in the valuation?
0:44:45 > 0:44:47Let's start with rental.
0:44:47 > 0:44:52If we would let this house as a five bedroom house then we could achieve
0:44:52 > 0:44:58between £2,000 per calendar month up to £2,100 per calendar month.
0:44:58 > 0:45:02If you were to rent this property out now as a five-bedroom house
0:45:02 > 0:45:06you'd be looking to achieve in the region of £2,000 per calendar month.
0:45:06 > 0:45:10However, Bucks originally set out to create this as an HMO.
0:45:10 > 0:45:12So does it make more financial sense
0:45:12 > 0:45:15if the rooms are rented out individually?
0:45:15 > 0:45:18If the rooms would be let out individually then
0:45:18 > 0:45:22we could achieve £110 per week per room.
0:45:22 > 0:45:26If you were to let out each individual room on a weekly basis
0:45:26 > 0:45:31you would be looking to achieve in the region of about £110 per week.
0:45:31 > 0:45:33I think the rental figures are quite low.
0:45:33 > 0:45:39I can definitely achieve way more on the rental room prices, for sure.
0:45:39 > 0:45:43So despite that potential yield of just under 8% Bucks is
0:45:43 > 0:45:45confident he can get more,
0:45:45 > 0:45:49with experience of renting out HMO properties in this area.
0:45:49 > 0:45:51But if he was to sell what kind of profit could
0:45:51 > 0:45:55he make on his £365,000 investment?
0:45:55 > 0:45:58I would expect to sell at the price of £500,000.
0:45:58 > 0:46:01If the property was to be sold in the current market
0:46:01 > 0:46:04now as a five-bedroom property as is,
0:46:04 > 0:46:08you'd be looking to achieve in the region of £500,000.
0:46:08 > 0:46:11Remember, Bucks had already lumped his fees into his spend
0:46:11 > 0:46:16so £135,000 would be his potential pre-tax profit.
0:46:16 > 0:46:19So could Bucks be tempted to sell?
0:46:20 > 0:46:23The sale values don't really sort of change my mind
0:46:23 > 0:46:25whether I want to sell the property or to rent it at the moment,
0:46:25 > 0:46:28it all depends on what I'm going to be doing abroad
0:46:28 > 0:46:30and whether I need to release equity from this property.
0:46:30 > 0:46:32So I mean £500,000 is good,
0:46:32 > 0:46:36£135,000 in six months or five months is great.
0:46:36 > 0:46:39But again that doesn't really matter at the moment for me.
0:46:39 > 0:46:43So what's next for Bucks and his growing empire?
0:46:43 > 0:46:47I've got a few projects lined up abroad so I'm just focusing on them.
0:46:47 > 0:46:49I'm sort of in and out of the country at the moment
0:46:49 > 0:46:53but definitely I'll be going to an auction in the UK some time
0:46:53 > 0:46:57in January, some time very soon to pick up some UK properties as well.
0:47:00 > 0:47:03If you've never been to a property auction but always fancied it
0:47:03 > 0:47:06I hope we've given you just that little bit of inspiration.
0:47:06 > 0:47:09But even if you're more of an armchair property enthusiast
0:47:09 > 0:47:13then you can still enjoy the thrills and spills of the property auction.
0:47:13 > 0:47:15Yes. So make sure you join us next time for more
0:47:15 > 0:47:16Homes Under The Hammer.
0:47:16 > 0:47:18- We'll see you then. - Goodbye.- Bye.- Bye.