0:00:02 > 0:00:03Hello and welcome to the show.
0:00:03 > 0:00:06Now, buying property is probably the biggest investment
0:00:06 > 0:00:07you'll ever make.
0:00:07 > 0:00:09Yeah, it can be really stressful.
0:00:09 > 0:00:11So many decisions to make and the stakes couldn't be higher.
0:00:11 > 0:00:15But if you have a passion for property like we all do, well,
0:00:15 > 0:00:16it can sometimes be worth it.
0:00:16 > 0:00:19So, why not think about buying your next home under the hammer?
0:00:46 > 0:00:47No matter how well prepared you are,
0:00:47 > 0:00:50buying a property at auction is always a bit of a gamble.
0:00:50 > 0:00:52That is true.
0:00:52 > 0:00:54However, you can really stack the odds in your favour
0:00:54 > 0:00:56by doing your research.
0:00:56 > 0:00:59Yes, so have today's buyers made the right decisions?
0:00:59 > 0:01:00Here's what they bought.
0:01:01 > 0:01:04At this two-bed terrace in Tunstall, Stoke,
0:01:04 > 0:01:07I'm using all my senses to check for problems.
0:01:08 > 0:01:11- MARTIN SNIFFS - Smell, doesn't smell damp.
0:01:12 > 0:01:14Whereas in Prescot, Merseyside,
0:01:14 > 0:01:17the problems in this three-bed house are plain to see.
0:01:17 > 0:01:19So, that's quite a big crack up there.
0:01:19 > 0:01:21That'll have to be looked at.
0:01:21 > 0:01:25And things are not quite to my taste in this three-bedroom flat
0:01:25 > 0:01:26in Dagenham, London.
0:01:28 > 0:01:31It is all very '70s and it needs updating.
0:01:34 > 0:01:36All these properties were bought at auction,
0:01:36 > 0:01:38we'll find out who got them and how much they paid
0:01:38 > 0:01:40when they went under the hammer.
0:01:40 > 0:01:41Well done.
0:01:47 > 0:01:50This is Tunstall in Stoke-on-Trent,
0:01:50 > 0:01:54one of the so-called six pottery towns that make up the area.
0:01:55 > 0:01:59Tunstall has in recent years seen a great deal of regeneration
0:01:59 > 0:02:01with the redevelopment of new housing
0:02:01 > 0:02:04and also the building of the Alexandra retail park
0:02:04 > 0:02:06in Tunstall town centre.
0:02:09 > 0:02:11Well, not far from the retail park
0:02:11 > 0:02:15and lots of urban regeneration is the property I'm here to see.
0:02:15 > 0:02:18And it's a classic mid terrace.
0:02:18 > 0:02:22Guide price was £35,000 plus, let's take a look inside.
0:02:25 > 0:02:28So, not expecting any great surprises with the layout,
0:02:28 > 0:02:29but what have we actually got?
0:02:29 > 0:02:31Well, first thing that greets you, this radiator,
0:02:31 > 0:02:35so you're going to have to factor in some kind of central heating
0:02:35 > 0:02:37into your budget.
0:02:37 > 0:02:41But an open fire would be nice there, nice surround.
0:02:41 > 0:02:43I mean, classic layout -
0:02:43 > 0:02:46straight off the pavement into the front living room area.
0:02:46 > 0:02:48Nice, high ceilings though, which is good.
0:02:48 > 0:02:50Then through into the rear living room.
0:02:50 > 0:02:52Stairs up to your bedrooms there.
0:02:52 > 0:02:55Another open fire, which is good to see.
0:02:55 > 0:02:58And using all my senses, as I keep on telling you.
0:02:58 > 0:03:00- MARTIN SNIFFS - Smell, doesn't smell damp.
0:03:00 > 0:03:02No obvious signs of damp, which is a good sign.
0:03:02 > 0:03:04It's just giving off all those indications,
0:03:04 > 0:03:06it's just a good, solid little house.
0:03:06 > 0:03:08Very traditional layout though.
0:03:08 > 0:03:11- Through here into the kitchen. - HE LAUGHS
0:03:11 > 0:03:13Well, you're going to have to spend
0:03:13 > 0:03:14a little bit of money in here to sort it out.
0:03:14 > 0:03:17And then on into the bathroom.
0:03:17 > 0:03:19Nothing I haven't seen before.
0:03:19 > 0:03:21And you know what?
0:03:21 > 0:03:24This is just a good, good, good solid little property.
0:03:24 > 0:03:26# Better the devil you know
0:03:26 > 0:03:30# Better the devil you know Oh-oh-oh-oh. #
0:03:30 > 0:03:33Nothing we haven't seen before, including our old foe,
0:03:33 > 0:03:36the polystyrene ceiling tile.
0:03:36 > 0:03:38Installing a new kitchen, flooring and central heating
0:03:38 > 0:03:43should be relatively straightforward in the right hands, that is.
0:03:44 > 0:03:47So, upstairs, again, very classic layout -
0:03:47 > 0:03:52two bedrooms separated by the stairs themselves.
0:03:52 > 0:03:54They're not a bad size.
0:03:54 > 0:03:57You could probably increase the size of this one slightly by taking out
0:03:57 > 0:03:59the water cylinder here,
0:03:59 > 0:04:00replacing that with a combination boiler
0:04:00 > 0:04:03which would also sort out your central heating issues.
0:04:03 > 0:04:07Um...it is what it is, but what it is is potentially
0:04:07 > 0:04:09quite a good money earner.
0:04:09 > 0:04:13Either buy it, do it up, sell it on, there's a reasonable profit,
0:04:13 > 0:04:17because the guide price it's at compared to similar houses
0:04:17 > 0:04:20in the street, hm, there's money to be made perhaps.
0:04:20 > 0:04:24Or this is a classic house to have in a portfolio of rental properties.
0:04:24 > 0:04:27It would deliver you a really good yield.
0:04:27 > 0:04:29Yes, these kind of houses are good,
0:04:29 > 0:04:32solid stock and an excellent starting place
0:04:32 > 0:04:33for would-be investors.
0:04:33 > 0:04:37# Let's make lots of money. #
0:04:38 > 0:04:41I can't see any room to move the bathroom up here,
0:04:41 > 0:04:45so no reconfiguration required, so all pretty straightforward.
0:04:47 > 0:04:49At the back of the property,
0:04:49 > 0:04:52a very classic extension for this kind of house.
0:04:52 > 0:04:57Originally, these would have been your two-up, two-down terraces,
0:04:57 > 0:05:01but over the years, the majority of them will have this sort of
0:05:01 > 0:05:04single-storey thing built on the back, which is housing, obviously,
0:05:04 > 0:05:06the kitchen and the loo.
0:05:06 > 0:05:09It basically takes up most of the space out here, but, obviously,
0:05:09 > 0:05:11provides that much-needed interior space.
0:05:11 > 0:05:13Now, some people do do a double-storey extension,
0:05:13 > 0:05:15you could consider that.
0:05:15 > 0:05:17It would all come down to the cost of doing it
0:05:17 > 0:05:20and whether you'd get that back when you came to sell.
0:05:20 > 0:05:23Homework is required on the ceiling price for the area.
0:05:23 > 0:05:27It doesn't make sense to spend more than you're likely to make back,
0:05:27 > 0:05:31unless perhaps you plan to make it your long-term home.
0:05:31 > 0:05:36A guide price of 35,000 is tempting, but you could get carried away.
0:05:36 > 0:05:39We asked a local property expert from the auction house
0:05:39 > 0:05:42who sold it about the property's potential.
0:05:42 > 0:05:43First impressions of this property
0:05:43 > 0:05:46are it does require full modernisation throughout.
0:05:46 > 0:05:47New kitchen,
0:05:47 > 0:05:50new bathroom, heating, some windows
0:05:50 > 0:05:53and it's really a full renovation that's required.
0:05:53 > 0:05:55Certainly there's lots to do.
0:05:55 > 0:05:59But what could this house, guided at 35,000, make on the rental market?
0:06:01 > 0:06:04Once renovated, I'd place this property
0:06:04 > 0:06:08on the rental market in the region of £400 per calendar month.
0:06:08 > 0:06:09Not too shabby at all.
0:06:09 > 0:06:12But what if the property was sold?
0:06:12 > 0:06:13After renovation,
0:06:13 > 0:06:17I would place this property on the market in the region of £65,000.
0:06:17 > 0:06:20If this was my property, I think I would look to renovate it
0:06:20 > 0:06:24and maybe keep it for a few years as a rental investment
0:06:24 > 0:06:28and then maybe assess the market in a few years' time.
0:06:28 > 0:06:31Well, this may not be the most unusual house you've ever seen,
0:06:31 > 0:06:34but it's classic auction material
0:06:34 > 0:06:38and these kind of properties can make a very good buy
0:06:38 > 0:06:41either if you're renting out or as a place to live.
0:06:41 > 0:06:44So, I'm sure it was popular when it went under the hammer.
0:06:44 > 0:06:47Lot number 32. 28 then.
0:06:47 > 0:06:49We started at 28, 28 bid. Thank you.
0:06:49 > 0:06:52£28,000. 30, going to say now.
0:06:52 > 0:06:5530. 30. 32. £32,000.
0:06:55 > 0:06:5834 in the doorway.
0:06:58 > 0:07:0035, 36 in the door.
0:07:00 > 0:07:0236,000 in the doorway.
0:07:02 > 0:07:05At 36. New bid at the left now, 37.
0:07:05 > 0:07:0638 in the door?
0:07:07 > 0:07:09No? 37 on the front row.
0:07:09 > 0:07:12At £37,000.
0:07:12 > 0:07:1338 anywhere else?
0:07:13 > 0:07:18If not, £37,000 for the first time, 37.
0:07:18 > 0:07:21New bidder at 38.
0:07:21 > 0:07:2339. 39. 40?
0:07:24 > 0:07:28No? At 39, still with you on the front row, sir, at £39,000.
0:07:28 > 0:07:3040 anywhere else?
0:07:31 > 0:07:35If not, £39,000 once, £39,000 twice,
0:07:35 > 0:07:39third and final time at £39,000...
0:07:39 > 0:07:41- GAVEL BANGS - You've bought it, sir, well done.
0:07:46 > 0:07:50The successful bidder was Andy with a bid of 39,000,
0:07:50 > 0:07:53just 4,000 over the guide price.
0:07:54 > 0:07:56Andy is a Falklands veteran,
0:07:56 > 0:07:59a former miner and is now a manager at a call centre,
0:07:59 > 0:08:03so I am sure he will be drawing on his varied experiences
0:08:03 > 0:08:05to help him with this project.
0:08:07 > 0:08:11I caught up with him back at the house to find out about his plans.
0:08:12 > 0:08:14- Andy, good to meet you. - And you, Martin.
0:08:14 > 0:08:16- Congratulations.- Thank you. Well done.
0:08:16 > 0:08:18Tell me why you wanted to buy this place.
0:08:18 > 0:08:22Well, I think it's got potential, I know the area fairly well -
0:08:22 > 0:08:24the Stoke-on-Trent area -
0:08:24 > 0:08:26and it's a blank canvas for me
0:08:26 > 0:08:29to sort of invest a bit of money and do it up.
0:08:29 > 0:08:31Is this the sort of thing you do then?
0:08:31 > 0:08:35I did some time ago, but each time I've bought a house, done it up,
0:08:35 > 0:08:38sold it, bought a house, mainly for my own
0:08:38 > 0:08:40benefit and my family.
0:08:40 > 0:08:43But this time now, me and my sister are doing it for our children.
0:08:43 > 0:08:46- Oh.- And each time we're going to sell them
0:08:46 > 0:08:51and put some aside, give some to charity and then at their time,
0:08:51 > 0:08:54they won't have such a struggle in life.
0:08:54 > 0:08:56- So you give some to charity? - Yes, a percentage.
0:08:56 > 0:09:00Each time we move and sell, three or four a year is our goal,
0:09:00 > 0:09:02aim and give a percentage to a charity.
0:09:02 > 0:09:06So, currently I'm doing it for a certain charity now - Alzheimer's.
0:09:06 > 0:09:08And I've done a lot for various others -
0:09:08 > 0:09:10Prostate Cancer, Cystic Fibrosis.
0:09:10 > 0:09:13Wow. So, can I be a little bit probing and say how much sort of
0:09:13 > 0:09:15percentage you're giving?
0:09:15 > 0:09:18- About 10%. - Right.- 10% of any profit.
0:09:18 > 0:09:20Oh, what a brilliantly...
0:09:20 > 0:09:22Well, I just feel like I've got to give it back,
0:09:22 > 0:09:25because there's a lot of research that goes into these charities
0:09:25 > 0:09:28and it takes a lot of finance to do that.
0:09:28 > 0:09:30So, whenever you do a property and sell it on,
0:09:30 > 0:09:32- 10% of your profit goes to charity? - That's right.
0:09:32 > 0:09:35What a great thing, I've never heard of anyone doing that.
0:09:35 > 0:09:37Yes, it's close to my heart.
0:09:37 > 0:09:39I've been doing charity events for over 20, 30 years,
0:09:39 > 0:09:42so I think it was the right thing to do.
0:09:42 > 0:09:45Andy is something of a philanthropist,
0:09:45 > 0:09:47but why did he choose this house?
0:09:48 > 0:09:53It was within budget. The guide price, I think, was 35,000
0:09:53 > 0:09:56and I'd maintained to go up to 45.
0:09:56 > 0:09:59And, fortunately, it was less than that,
0:09:59 > 0:10:02so it left me a little bit more to do it up with.
0:10:02 > 0:10:05And it's, I think, a good area.
0:10:05 > 0:10:07What are the plans for this place? What are you going to do
0:10:07 > 0:10:10- with it?- There's a little bit of building work to be done,
0:10:10 > 0:10:11going into the bathroom.
0:10:11 > 0:10:17Take the wall out there, put the bath, new bathroom, new kitchen,
0:10:17 > 0:10:20then plastering, so strip the walls down, paper-wise.
0:10:20 > 0:10:22Reassess all the cabling
0:10:22 > 0:10:25and then, basically, completely new fireplace,
0:10:25 > 0:10:27block off the one in the front room,
0:10:27 > 0:10:32new doors and then the general right the way through.
0:10:32 > 0:10:34A member of my family's in the carpet business.
0:10:34 > 0:10:36- Oh, right.- So, I can run it straight through.
0:10:36 > 0:10:37And then the central heating, of course.
0:10:37 > 0:10:40Combi boiler in and pop the radiators in each room.
0:10:40 > 0:10:42- Great.- That's the idea. - And what's the budget?
0:10:42 > 0:10:44Budget, um...
0:10:44 > 0:10:48The figures in my head are saying to me around about 5,000 to 6,000.
0:10:48 > 0:10:50All in. It was a benefit or bonus, I should say,
0:10:50 > 0:10:54that it's been rewired and there's new RCD units in.
0:10:54 > 0:10:57And there's a new tank upstairs, but with that in mind,
0:10:57 > 0:10:59I think around about that figure.
0:10:59 > 0:11:03With the benefit of a small army of helpers that include plumbers,
0:11:03 > 0:11:04tilers and builders,
0:11:04 > 0:11:07Andy is aiming for this project to be completed
0:11:07 > 0:11:09in about 12 weeks' time.
0:11:09 > 0:11:14# Thank you for being a friend. #
0:11:14 > 0:11:18He's hoping for a quick turnaround and an equally quick sale.
0:11:18 > 0:11:20What then are his expectations?
0:11:21 > 0:11:24Having looked on the internet, the local sort of price ranges...
0:11:24 > 0:11:26There's a lady down the road, she's just sold her property.
0:11:26 > 0:11:29..it's around about 57,000 to 60,000.
0:11:29 > 0:11:32Right, so, between £10,000 and £15,000 profit then?
0:11:32 > 0:11:34- Quite possibly. - Of which you'll give...
0:11:34 > 0:11:38- 1,500 if it's 15. The more, the better for the charity.- Yeah.
0:11:38 > 0:11:40It may not be a massive amount, but it means something.
0:11:40 > 0:11:43- If everyone did it, it would be. - Well, that's right.
0:11:43 > 0:11:44That's right, yeah.
0:11:44 > 0:11:47And, then, for you, the next project, onto the next one then?
0:11:47 > 0:11:51Absolutely. If this goes to plan, goes well, straight into...
0:11:51 > 0:11:54The idea, the goal is, we're looking at about three or four,
0:11:54 > 0:11:55realistically, a year.
0:11:55 > 0:11:58And how much will you get involved in the work? Have you got
0:11:58 > 0:11:59much practical experience?
0:11:59 > 0:12:01- What do you do when you're not doing this?- Oh, yes.
0:12:01 > 0:12:04I will have a go at everything bar, I have to say, the plumbing,
0:12:04 > 0:12:07I'm an electrician when I was in the forces, in the Navy.
0:12:07 > 0:12:10I'll take doors off, I'll do all the DIY, I love it.
0:12:10 > 0:12:13But the bulk of the work,
0:12:13 > 0:12:16I'll kind of let the tradesmen do with the expertise.
0:12:16 > 0:12:19- Right, well, congratulations. Really well done.- Thank you.
0:12:19 > 0:12:20Looking forward to seeing how you get on.
0:12:20 > 0:12:22Thanks very much. Thank you.
0:12:23 > 0:12:25Well, what a nice story.
0:12:25 > 0:12:29Andy doing this place up, hopefully making a profit,
0:12:29 > 0:12:32taking a sum for himself and giving some to charity.
0:12:32 > 0:12:34Great story, great idea.
0:12:34 > 0:12:37How will he get on? You can find out later in the show.
0:12:42 > 0:12:45The city of Liverpool, famed for, among other things,
0:12:45 > 0:12:48its contribution to popular music.
0:12:48 > 0:12:51It also has some interesting suburbs.
0:12:51 > 0:12:55# I found a place full of charms
0:12:57 > 0:13:00# Wondrous place. #
0:13:00 > 0:13:03In the heart of Prescot and only 30 minutes away
0:13:03 > 0:13:06from the centre of Liverpool is the property I'm here to see.
0:13:06 > 0:13:09And it's on this street that has a corner shop
0:13:09 > 0:13:12and a pub just across the road as well.
0:13:12 > 0:13:15And here's our house, it has three bedrooms and a guide price
0:13:15 > 0:13:17of £45,000 plus...
0:13:17 > 0:13:20Let's get inside, or shall we go to the pub?
0:13:20 > 0:13:22No, let's get inside.
0:13:22 > 0:13:24OK, in through the front door.
0:13:24 > 0:13:28You've got a nice, long hallway, a bit old-fashioned.
0:13:28 > 0:13:30You've got some textured wallpaper and some wood panelling
0:13:30 > 0:13:32which makes it really dark.
0:13:32 > 0:13:34Central heating as well.
0:13:35 > 0:13:37And a little bit of movement up there.
0:13:37 > 0:13:41That's actually fallen off that ceiling.
0:13:41 > 0:13:44They'd have to get that sorted out as soon as possible.
0:13:44 > 0:13:45That's quite a big crack up there.
0:13:45 > 0:13:47That'll have to be looked at.
0:13:47 > 0:13:52Stairs up to the bedrooms and into the dining room and lounge,
0:13:52 > 0:13:54which is a nice, big space.
0:13:54 > 0:13:55Dual aspect window.
0:13:55 > 0:13:58You've got one window at the front, one window at the back as well.
0:13:58 > 0:13:59Lots of light in here.
0:13:59 > 0:14:02I would imagine this was two rooms back in the day,
0:14:02 > 0:14:05but I much prefer it as this big, one room.
0:14:05 > 0:14:09I can actually see signs of damp as well
0:14:09 > 0:14:12and there's some here too.
0:14:12 > 0:14:14Kitchen just here, which is a nice, big galley kitchen,
0:14:14 > 0:14:17surprising how big this kitchen is and it goes all the way through
0:14:17 > 0:14:19to the family bathroom as well.
0:14:19 > 0:14:22And both of them look like they could be salvageable,
0:14:22 > 0:14:24so that'll be handy on the budget.
0:14:24 > 0:14:26Let's check out upstairs.
0:14:28 > 0:14:31The back bedroom has signs of water damage on the ceiling,
0:14:31 > 0:14:32probably from the roof,
0:14:32 > 0:14:36but you might just be able to squeeze a double bed in here.
0:14:39 > 0:14:43The second bedroom's decor makes it appear smaller than it actually is,
0:14:43 > 0:14:46but I'm after that source of the downstairs cracks.
0:14:47 > 0:14:52MUSIC: Cracks by The View
0:14:53 > 0:14:57OK, into the third bedroom, movement here as well,
0:14:57 > 0:14:58so there's something definitely going on.
0:14:58 > 0:15:02Apart from the cracks and the damp, it's not bad at all.
0:15:02 > 0:15:06My next mission is to find the back garden.
0:15:06 > 0:15:10MUSIC: The Pink Panther Theme by Henry Mancini
0:15:13 > 0:15:16I think it's pretty self-explanatory here, isn't it?
0:15:16 > 0:15:17Well, if you get rid of all this,
0:15:17 > 0:15:20you'll have yourself a nice little back garden.
0:15:22 > 0:15:25Now for a professional opinion from a local property expert
0:15:25 > 0:15:28we called in to give us some valuations
0:15:28 > 0:15:30and a bit of background on the area.
0:15:31 > 0:15:34The area this house is situated in is good for local amenities.
0:15:34 > 0:15:36It's also good for local transport links
0:15:36 > 0:15:38to Manchester and Liverpool.
0:15:38 > 0:15:40It's an up-and-coming area for first-time buyers
0:15:40 > 0:15:43because of the local amenities and the transport links.
0:15:43 > 0:15:47What would it cost to refurbish it to a marketable standard?
0:15:47 > 0:15:49Looking at this property
0:15:49 > 0:15:51for the amount of money that you'd need to spend -
0:15:51 > 0:15:53first of all, you'd have to look at the rising damp
0:15:53 > 0:15:55and the structural movement, but in general,
0:15:55 > 0:15:58you could be looking at up to £10,000 from top to bottom,
0:15:58 > 0:16:01and then obviously look at the other issues
0:16:01 > 0:16:04if there are any come up on a survey.
0:16:04 > 0:16:08At the auction, the guide price was £45,000.
0:16:08 > 0:16:10What would the property be worth after refurbishment?
0:16:10 > 0:16:12Once the property's refurbed,
0:16:12 > 0:16:14I'd be looking to put it on the market
0:16:14 > 0:16:17between 85 and 90 on the current market.
0:16:17 > 0:16:19Maybe 85, more realistically looking,
0:16:19 > 0:16:22getting offers around 80,000.
0:16:22 > 0:16:24Not bad head room for a refurbishment budget,
0:16:24 > 0:16:28even with its problems. What about rental?
0:16:28 > 0:16:30Once the property is renovated,
0:16:30 > 0:16:36you'd be looking at a rental price of around £550 per calendar month.
0:16:36 > 0:16:40The numbers seem to stack up, but with that worrying crack and damp,
0:16:40 > 0:16:43I'd want to get some experts in just to check it out.
0:16:43 > 0:16:45Let's see who wanted to have a crack at this one
0:16:45 > 0:16:47when it went under the hammer.
0:16:49 > 0:16:54So, we're on to lot number six. Got a telephone bid on this one.
0:16:54 > 0:16:5745's your guide. Three-bedroom, mid-terraced house.
0:16:57 > 0:16:59Let's say 40. Let's get it going.
0:16:59 > 0:17:02At £40,000. 35, then.
0:17:02 > 0:17:06At 35, I'm bid. In the room now at £35,000.
0:17:06 > 0:17:11At 35. 36. Very close. 37. 38.
0:17:11 > 0:17:1439. 40. 41.
0:17:15 > 0:17:2041, I'm bid. 42. 43. 44. 45.
0:17:20 > 0:17:25No? Here at 44. Are we all done at £44,000?
0:17:25 > 0:17:2845 on the phone. 46 in the room.
0:17:28 > 0:17:31It's against the phone now. It's against the phone.
0:17:31 > 0:17:36It's in the room at 46. 47 on the phone now. 48.
0:17:36 > 0:17:37Can you, sir?
0:17:37 > 0:17:4048, I've got. 49.
0:17:40 > 0:17:44In the room now against the phone. With you, sir, at 48. Are we done?
0:17:45 > 0:17:4849. 50. 51.
0:17:49 > 0:17:56Here at 50. At £50,000 first time. At £50,000 second time.
0:17:56 > 0:18:00It's in the room. It's against the phone. At £50,000.
0:18:00 > 0:18:02Take half if it helps.
0:18:02 > 0:18:05If not, selling away, then, at £50,000.
0:18:05 > 0:18:08Well done, sir. Can I have your paddle number, please?
0:18:09 > 0:18:11551.
0:18:11 > 0:18:13The successful bid was from Tom
0:18:13 > 0:18:16who, along with his long-term partner Nicky,
0:18:16 > 0:18:18have a small rental portfolio.
0:18:19 > 0:18:23They met me back at their latest £50,000 investment
0:18:23 > 0:18:25to discuss their plans and the cracks.
0:18:27 > 0:18:29- Nicky, nice to meet you. - Nice to meet you.
0:18:29 > 0:18:32Tom, same to you, sir. Congratulations as well.
0:18:32 > 0:18:37- What made you buy this house? - The area and the price, really.
0:18:37 > 0:18:40- You know it? Do you know the area well?- Erm, yeah, yeah.
0:18:40 > 0:18:43I know the hospitals are close and the motorways are close
0:18:43 > 0:18:47and things like that, so it'd be a good rental machine, really.
0:18:47 > 0:18:50- Is that what you want to do? - Yeah, just do it up and rent it out.
0:18:50 > 0:18:53OK. What are you going to do to this property?
0:18:53 > 0:18:56- I'm going to do... It needs dampcourse.- Yeah.
0:18:56 > 0:18:59It needs a couple of ceilings dropping,
0:18:59 > 0:19:04plating, skimming, wallpaper stripping, skimming,
0:19:04 > 0:19:05complete painting right through.
0:19:05 > 0:19:08The tile's coming off in the kitchen.
0:19:08 > 0:19:11It's all getting re-tiled. There's nothing up with the bathroom.
0:19:11 > 0:19:13Tidy the back garden up.
0:19:13 > 0:19:17Paint the stones in the front, not the bricks.
0:19:17 > 0:19:21- And basically a good clean through. - It's quite a long list, then.
0:19:21 > 0:19:24- DION LAUGHS - Yeah.
0:19:24 > 0:19:26Nicky, who's going to do the work?
0:19:26 > 0:19:28- Himself.- Are you going to do most of it yourself?
0:19:28 > 0:19:31Yeah, apart from the sparking and the gas.
0:19:31 > 0:19:34I'll get someone in who's registered to do them type of works.
0:19:34 > 0:19:37He's good, isn't he? He's keeping all the costs down. I like it.
0:19:37 > 0:19:41- And I've seen signs of movement in the front bedroom as well.- Yeah.
0:19:41 > 0:19:44- How are you going to deal with that? - Well, to be quite honest,
0:19:44 > 0:19:47I just found out off one of the neighbours
0:19:47 > 0:19:51that there was a leak in the street quite a few years ago
0:19:51 > 0:19:55and a few of the houses were moving down,
0:19:55 > 0:19:57had the fronts dropped and works done.
0:19:57 > 0:19:59And they've checked all the houses for movement
0:19:59 > 0:20:02because of the leak and all the works have been done.
0:20:02 > 0:20:06So, I think it's just cos it's been a long time empty,
0:20:06 > 0:20:08I think it's just a little bit of settlement
0:20:08 > 0:20:11and the ground drying out after that,
0:20:11 > 0:20:13so there's nothing that really worries me
0:20:13 > 0:20:15and it's not really big cracks that's in it.
0:20:15 > 0:20:16Just little minor ones.
0:20:16 > 0:20:20So, what's involved with the damp? How are you going to fix that?
0:20:20 > 0:20:22Well, there's a number of different ways,
0:20:22 > 0:20:26but the way I'm going to go for it is hacking off a metre high
0:20:26 > 0:20:29and there's different products on the market
0:20:29 > 0:20:32that they use for tanks and cellars,
0:20:32 > 0:20:34so I'm going to use one of them products
0:20:34 > 0:20:36and then it doesn't matter how wet the wall is -
0:20:36 > 0:20:38damp will not come through no matter what.
0:20:41 > 0:20:44Tom is going to tank the walls by fitting a dimpled plastic sheet
0:20:44 > 0:20:46behind the bottom metre of plaster.
0:20:47 > 0:20:50He prefers this method to the older practice
0:20:50 > 0:20:53of drilling holes in the wall's mortar
0:20:53 > 0:20:55and injecting damp-proof cream.
0:20:56 > 0:20:59There are several new methods you can use to tackle rising damp.
0:20:59 > 0:21:02The best way to go can depend on the age,
0:21:02 > 0:21:05condition and materials used in the wall.
0:21:05 > 0:21:09My advice - always check with a specialist company.
0:21:09 > 0:21:11# So, thank you very much... #
0:21:12 > 0:21:17OK, so, while you're doing the work and getting your hands dirty,
0:21:17 > 0:21:20let me try and figure out what you're going to be doing.
0:21:20 > 0:21:23- What's your job?- I'll probably be doing all the phone calling.
0:21:23 > 0:21:26- Oh, OK.- Organisation.- I knew there'd be a balance somewhere.
0:21:26 > 0:21:29- He's trying to take all the credit. - Oh, he is. He does.
0:21:29 > 0:21:31- DION LAUGHS - I just get my hands dirty.
0:21:31 > 0:21:34How long is all this work going to take you?
0:21:34 > 0:21:35If I wasn't working full-time,
0:21:35 > 0:21:38I'd say it'd probably take three to four weeks,
0:21:38 > 0:21:42but because I'm full-time, we've got children,
0:21:42 > 0:21:45my partner's part-time, I'd say two to three months.
0:21:45 > 0:21:47It'll just be the odd Saturday
0:21:47 > 0:21:49- and the odd couple of nights after work, really.- OK.
0:21:49 > 0:21:51- What is your full-time job? - I'm a plasterer.
0:21:51 > 0:21:54I see. Now it's all coming to light, isn't it? It's all coming to light.
0:21:54 > 0:21:57- So, you do all the plastering yourself?- Everything, yeah.
0:21:57 > 0:21:59Is that why you can do the damp as well?
0:21:59 > 0:22:00Yeah, yeah, cos most of the time,
0:22:00 > 0:22:03it's damp work we do for housing associations.
0:22:03 > 0:22:09So, probably, most weeks, I'm doing dampcourse work anyway.
0:22:09 > 0:22:11I'd love to see what your house is like.
0:22:11 > 0:22:13It must be spotless. SHE LAUGHS
0:22:13 > 0:22:15- No.- No? DION LAUGHS
0:22:15 > 0:22:17How come that's the case?
0:22:17 > 0:22:20- Cos he's always doing other houses.- Oh, I see.
0:22:20 > 0:22:23You're giving him an excuse there, by the way. You're letting him off.
0:22:23 > 0:22:25We seem to do other houses better than what ours is.
0:22:25 > 0:22:27DION LAUGHS Is that right?
0:22:27 > 0:22:29But when I do get home, I take the kids out,
0:22:29 > 0:22:31so I do spend time in the house.
0:22:31 > 0:22:33So, it's either spend time with the kids or do another house,
0:22:33 > 0:22:35- so something's got to give.- OK.
0:22:35 > 0:22:37- How many children do you have?- Four.
0:22:37 > 0:22:39- What are their ages? - 14, 11, seven and three.
0:22:39 > 0:22:41OK, give them a quick mention. What are their names?
0:22:41 > 0:22:44- Thomas, Connor, Oliver and Harvey. - There you go.
0:22:44 > 0:22:46Now you're safe cos you've mentioned them all.
0:22:46 > 0:22:49How much is it going to cost you to do all the work?
0:22:49 > 0:22:51I'd say between £2,000 and £3,000.
0:22:51 > 0:22:53From start to finish, that's everything?
0:22:53 > 0:22:55- With your damp and...? - The lot, yeah.
0:22:55 > 0:22:58Really? That's a decent budget, to be fair.
0:22:58 > 0:23:00Cos apart from your damp,
0:23:00 > 0:23:02maybe the cracks in the front bedroom.
0:23:02 > 0:23:05I've seen a bit of a leak, as well, in the ceiling in the back bedroom.
0:23:05 > 0:23:07Is that a worry to you?
0:23:07 > 0:23:10I've had a look up and it seems to just be a slipped slate,
0:23:10 > 0:23:12so it's not a major...
0:23:12 > 0:23:14It's not as if the roof's damaged or nothing like that.
0:23:14 > 0:23:16It's just because it's been a long-term empty
0:23:16 > 0:23:18and it hasn't been maintained.
0:23:18 > 0:23:20I don't think this will be a problem to you.
0:23:20 > 0:23:23You seem to have the right answers. You know what you want to achieve.
0:23:23 > 0:23:26- Yeah.- You've got the boss there doing the phone calls for you.
0:23:26 > 0:23:28- With the brains.- With the brains. THEY LAUGH
0:23:28 > 0:23:29- Nicky, good luck. - Thank you very much.
0:23:29 > 0:23:31- Wish you all the best. Good luck.- Thank you.
0:23:31 > 0:23:33- Tom, good luck, pal.- Cheers. Thanks.
0:23:33 > 0:23:36Well, a relatively straightforward property,
0:23:36 > 0:23:38but Tom has a full-time job,
0:23:38 > 0:23:41Nicky works night shifts and they have four kids,
0:23:41 > 0:23:46so one thing they don't have is lots of spare time to do up a property.
0:23:46 > 0:23:49How will they get on? Find out later in the show.
0:23:53 > 0:23:55- LUCY:- Still to come, a three-bed flat in Dagenham
0:23:55 > 0:23:58that just doesn't seem to know when to stop.
0:23:59 > 0:24:02And I'm still in the corridor. That is how long it is.
0:24:04 > 0:24:05Back in Prescott,
0:24:05 > 0:24:09did Tom and Nicky find the time to fill in those cracks?
0:24:09 > 0:24:12The biggest challenge was basically squeezing it into everyday life.
0:24:17 > 0:24:19- MARTIN:- We're back in Tunstall, Stoke,
0:24:19 > 0:24:22to see a classic two-up two-down terraced house
0:24:22 > 0:24:25that didn't seem to hold any surprises.
0:24:25 > 0:24:26Classic layout.
0:24:26 > 0:24:29Straight off the pavement into the front living room area.
0:24:29 > 0:24:31Nice, high ceilings, though, which is good.
0:24:31 > 0:24:33Then through into the rear living room.
0:24:33 > 0:24:35Stairs up to your bedrooms there.
0:24:35 > 0:24:37No obvious signs of damp, which is a good sign.
0:24:37 > 0:24:39It's just giving off all those indications
0:24:39 > 0:24:41it's just a good, solid little house.
0:24:43 > 0:24:45It was a solid choice for anyone who was willing
0:24:45 > 0:24:49to invest time and money as it did need quite a lot of work.
0:24:49 > 0:24:53It had no central heating, polystyrene ceiling tiles
0:24:53 > 0:24:55and it needed a new kitchen and bathroom,
0:24:55 > 0:24:57so a classic auction lot.
0:25:01 > 0:25:04Falklands veteran and call centre manager Andy
0:25:04 > 0:25:07was up to the challenge of doing the work that was needed here,
0:25:07 > 0:25:10and bought the property for £39,000.
0:25:10 > 0:25:13He is an experienced property developer
0:25:13 > 0:25:15with a novel plan for the potential profits.
0:25:17 > 0:25:19Each time we move and sell -
0:25:19 > 0:25:21three or four a year is our goal, aim -
0:25:21 > 0:25:23and give a percentage to a charity.
0:25:23 > 0:25:26So, currently, I'm doing it for a certain charity now -
0:25:26 > 0:25:28Alzheimer's - but I've done a lot for various others -
0:25:28 > 0:25:31- prostate cancer, cystic fibrosis.- Wow.
0:25:31 > 0:25:33- Yeah.- So, can I be a little bit probing
0:25:33 > 0:25:36- and say how much percentage you've given?- About 10%.
0:25:36 > 0:25:38- Right.- About 10% of any profit.
0:25:38 > 0:25:40- Yeah, what a brilliantly... - Yeah, absolutely.
0:25:40 > 0:25:43Well, I just feel that you've got to give it back
0:25:43 > 0:25:46because there's a lot of research that goes into these charities
0:25:46 > 0:25:48and it takes a lot of finance to do that.
0:25:48 > 0:25:51So, whenever you do up a property and sell it on,
0:25:51 > 0:25:54- 10% of your profit goes to charity? - That's right.- What a great thing.
0:25:54 > 0:25:56It really is generous,
0:25:56 > 0:26:00but was his timescale of 12 weeks to do the work realistic?
0:26:01 > 0:26:04Well, we're back two years and four months later -
0:26:04 > 0:26:08just a bit later than planned. I hope everything's worked out.
0:26:12 > 0:26:15And it has. Everything here looks great.
0:26:18 > 0:26:21There are some very expensive and time-consuming aspects
0:26:21 > 0:26:25to this property that aren't as apparent at first glance.
0:26:27 > 0:26:29The whole house has been taken back to brick,
0:26:29 > 0:26:32as there were a few damp patches.
0:26:32 > 0:26:36Andy thought it would be much better to make sure the whole house was dry
0:26:36 > 0:26:39and then reboard and plaster everywhere.
0:26:39 > 0:26:41To keep any water out from above,
0:26:41 > 0:26:44the front roof has had 300 new tiles.
0:26:44 > 0:26:47The old storage radiators have gone
0:26:47 > 0:26:50and they've been replaced with a new central heating system.
0:26:52 > 0:26:56It's taken Andy and his team much longer than anticipated.
0:26:56 > 0:26:58Time for Andy to tell us more.
0:26:58 > 0:27:01I think the biggest challenges were the time, going through the winter,
0:27:01 > 0:27:04and working as well with our own respective jobs.
0:27:04 > 0:27:09And then we found the black asbestos pipe
0:27:09 > 0:27:12by removing the boiler in the back bedroom, which...
0:27:12 > 0:27:15Then, we had to down tools
0:27:15 > 0:27:19and remove that safely and securely by the professionals.
0:27:19 > 0:27:22And it was just really time - effective time.
0:27:22 > 0:27:25So, whether it be two hours here and then,
0:27:25 > 0:27:27a full weekend, depending on the weather,
0:27:27 > 0:27:31when we could get in and do the work that was required.
0:27:31 > 0:27:34All in all, it took longer than anticipated.
0:27:34 > 0:27:38However, getting there, in the end, and the end result, I think,
0:27:38 > 0:27:40is justified by the timeframe.
0:27:40 > 0:27:43Andy believes in doing a thorough job
0:27:43 > 0:27:45and that is what he's done here.
0:27:45 > 0:27:49However, time is money and adding expenses like council tax,
0:27:49 > 0:27:51which came to over 1,300 quid,
0:27:51 > 0:27:54as well as the obvious building costs, were a drain.
0:27:54 > 0:27:57His estimated budget of five to six grand -
0:27:57 > 0:27:58ooh, what's happened to that?
0:28:00 > 0:28:02Estimated spend, initially...
0:28:02 > 0:28:04And I think I was a little bit naive thinking,
0:28:04 > 0:28:07you know, "Is this a quick fix? Is this a quick turnaround?"
0:28:07 > 0:28:10And it wasn't and I had to be realistic and honest.
0:28:10 > 0:28:12I'm not going to take short cuts.
0:28:12 > 0:28:15Um, and that said, I would say at least double,
0:28:15 > 0:28:18plus a little bit more.
0:28:18 > 0:28:23Estimated 14,000, to be fair, it was.
0:28:23 > 0:28:26And I'm still happy that I paid that figure,
0:28:26 > 0:28:27you know, and I wanted it right.
0:28:27 > 0:28:31I wanted it to be done right and the right people doing the job.
0:28:31 > 0:28:35The people I've had doing that are amazing, I think.
0:28:35 > 0:28:39Their work is, you know, top-notch, very good.
0:28:39 > 0:28:41So, again, I think you pay the price
0:28:41 > 0:28:44for the right people to do the work effectively,
0:28:44 > 0:28:48and the finished article is something that I'm proud of,
0:28:48 > 0:28:50and they should be proud of as well.
0:28:50 > 0:28:5314 grand on top of his 39 grand investment
0:28:53 > 0:28:56brings his total to £53,000.
0:28:56 > 0:28:58Andy seems pretty happy with it.
0:28:58 > 0:29:00Will he be equally as pleased
0:29:00 > 0:29:03with the opinions of two local estate agents?
0:29:09 > 0:29:12It's been a couple of years since the property was purchased.
0:29:12 > 0:29:16There has been a natural improvement and growth in the market,
0:29:16 > 0:29:20so I would say that's possibly a favourable situation.
0:29:20 > 0:29:22That's good news,
0:29:22 > 0:29:24but what are the agent's thoughts on the property itself?
0:29:25 > 0:29:27For this type of property,
0:29:27 > 0:29:30I think the standard of the finish is more than adequate.
0:29:30 > 0:29:33It's modern, the kitchen and bathroom is decent
0:29:33 > 0:29:36and, really, they're the main things that people will look for.
0:29:36 > 0:29:38My first impressions are very good.
0:29:38 > 0:29:41They've done, obviously, everything to a good standard.
0:29:41 > 0:29:44It's neutral. It's going to appeal to everybody.
0:29:44 > 0:29:46They haven't gone overboard with the quality
0:29:46 > 0:29:49and it'll be very good for the market.
0:29:49 > 0:29:51There is good demand for this type of property,
0:29:51 > 0:29:54and either on the sales side or the letting side,
0:29:54 > 0:29:58it would be easy to find a suitable buyer or tenant.
0:29:58 > 0:29:59That's good to hear,
0:29:59 > 0:30:01but Andy had always intended to sell this property
0:30:01 > 0:30:04and use the funds for the next project,
0:30:04 > 0:30:07as well as his charitable donation, of course.
0:30:07 > 0:30:10The estimated value the agent gave over two years ago
0:30:10 > 0:30:14was that, fully renovated, the house could sell for around 65 grand.
0:30:14 > 0:30:16So, what could it sell for on today's market?
0:30:16 > 0:30:19If this property came onto the sales market,
0:30:19 > 0:30:23I'd look for an asking price of £59,995.
0:30:23 > 0:30:28I would place this property on the market in the region of £65,000.
0:30:28 > 0:30:32Sounds about right for the area, given the current climate.
0:30:32 > 0:30:34There are a few properties around this area
0:30:34 > 0:30:37between - top end - 65 to 70.
0:30:37 > 0:30:40That's where we were looking at, to be totally honest,
0:30:40 > 0:30:44but I understand, estate agents, they have the knowledge.
0:30:44 > 0:30:47But we do know that a property is worth what someone will pay for it,
0:30:47 > 0:30:49and with a top-end finish,
0:30:49 > 0:30:53we can hope that Andy will get his top-end price.
0:30:53 > 0:30:55But it demonstrates that you can't assume
0:30:55 > 0:30:57that prices will always climb over time.
0:30:57 > 0:30:59On the good news front,
0:30:59 > 0:31:04that 65-grand valuation would get him a £12,000 pre-tax profit,
0:31:04 > 0:31:07which also means that a charity could benefit
0:31:07 > 0:31:11to the tune of £1,200 this time, which is amazing.
0:31:11 > 0:31:13The phrase charity begins at home
0:31:13 > 0:31:15couldn't be any more appropriate than here.
0:31:17 > 0:31:20I've got something very close to my heart, which is the charity side.
0:31:20 > 0:31:23Some people say this is a hobby, it's not my business,
0:31:23 > 0:31:26but I'm just giving something back to the community
0:31:26 > 0:31:28and people who deserve that.
0:31:28 > 0:31:31I reckon Andy deserves some plaudits
0:31:31 > 0:31:34for his inspirational approach to property profits.
0:31:34 > 0:31:38I hope we'll be seeing him again on Homes Under The Hammer.
0:31:44 > 0:31:48We're in Dagenham, less than a mile from Dagenham Heathway tube
0:31:48 > 0:31:51and just around the corner from the original Dagenham Village
0:31:51 > 0:31:54with its Parish Church and pub.
0:31:54 > 0:31:59But since Dagenham officially became part of Greater London in 1965,
0:31:59 > 0:32:02it's become a much more built-up and busy urban area.
0:32:06 > 0:32:09This street is a 15-minute walk from the tube
0:32:09 > 0:32:11and you can see it's a residential area
0:32:11 > 0:32:14with blocks of flats dating from different times.
0:32:14 > 0:32:17So, yes, I'm here to see a flat,
0:32:17 > 0:32:21which went to auction with a guide price of £120,000.
0:32:21 > 0:32:24Now, it's a three-bedder and it's on the ground floor
0:32:24 > 0:32:26of this '70s building here.
0:32:26 > 0:32:30But something I've noticed, which is rather unusual.
0:32:30 > 0:32:35Look, there are washing lines all along the front of this building.
0:32:35 > 0:32:37Ha! I've never seen that before.
0:32:41 > 0:32:43# Let it all hang out. #
0:32:45 > 0:32:48Well, just for your information, I'm not going to hang out here.
0:32:48 > 0:32:50Let's take a look inside.
0:32:52 > 0:32:59Oh, wow! What a really long, long, dark and yellow hallway.
0:33:00 > 0:33:02So, down this long, long, long corridor,
0:33:02 > 0:33:04you've got various rooms leading off.
0:33:04 > 0:33:06A bedroom, a rather large cupboard,
0:33:06 > 0:33:07two little, small coat cupboards here.
0:33:07 > 0:33:10You've got a bathroom, a couple of bedrooms.
0:33:10 > 0:33:13There's a lot - and when I say a lot, I mean an awful lot -
0:33:13 > 0:33:15of textured painted walls.
0:33:15 > 0:33:18You've got a fan effect up there.
0:33:18 > 0:33:22I mean, it's all very '70s and it needs updating.
0:33:22 > 0:33:25Brown wallpaper in there, lots of different types of flooring.
0:33:25 > 0:33:29It really is a bit of a mismatch and I'm still in the corridor.
0:33:29 > 0:33:30That is how long it is.
0:33:30 > 0:33:34The kitchen, to the left, I think that's quite a good size.
0:33:34 > 0:33:37A nice big, square kitchen and then right at the end,
0:33:37 > 0:33:40in the orange lounge, you've got this space here.
0:33:40 > 0:33:42Another little space through there,
0:33:42 > 0:33:44I'm not quite sure what you could you with that.
0:33:44 > 0:33:46But the good news is, if you come over here,
0:33:46 > 0:33:50underneath this net curtain, you've got really good double glazing.
0:33:50 > 0:33:53That looks fairly new and, of course, a little green out there.
0:33:53 > 0:33:55So, ideal if you've got a little doggie
0:33:55 > 0:33:59or you've got kids and they want to play outside. Perfect.
0:34:02 > 0:34:04And hey, if the weather isn't good, you could get
0:34:04 > 0:34:08some amount of cartwheeling done down that long hallway.
0:34:08 > 0:34:10It really is the main artery of the house.
0:34:12 > 0:34:16The two larger bedrooms are well proportioned and the smaller one
0:34:16 > 0:34:18would suit a child or as a home office.
0:34:21 > 0:34:24I do have an issue with the toilet being separate from the bathroom.
0:34:24 > 0:34:28Where do you wash your hands? Well, I just prefer them to be together
0:34:28 > 0:34:30or at least have a sink in the loo.
0:34:31 > 0:34:35Reconfiguration is required, I think, on this one.
0:34:35 > 0:34:38And I'm faced with a similar issue in the heart of this property.
0:34:40 > 0:34:42So, I've had a good old thorough look around this flat
0:34:42 > 0:34:44and, of course, I'm looking for ways
0:34:44 > 0:34:46in which you could improve the space.
0:34:46 > 0:34:49Now, I'd like to say, first of all, it is quite generous with its space,
0:34:49 > 0:34:51which is a real bonus, but standing here,
0:34:51 > 0:34:55I can't help but think I would rather this be
0:34:55 > 0:34:57one big, open-plan space.
0:34:57 > 0:35:01You'd have a nice big double aspect view here, two big windows.
0:35:01 > 0:35:04And the reason I say that is because, well, first of all,
0:35:04 > 0:35:06this room, what can you do with it?
0:35:06 > 0:35:08I think it's too small for a bedroom.
0:35:08 > 0:35:11Maybe an office. Would it really be used as that?
0:35:11 > 0:35:13You've already got three bedrooms down the end there.
0:35:13 > 0:35:16By simply taking down this partition,
0:35:16 > 0:35:19it would just open this space up nicely.
0:35:19 > 0:35:22And I think for a young family or a couple, even, it would just be
0:35:22 > 0:35:25so much a nicer way to live to have one big room
0:35:25 > 0:35:28rather than two small rooms.
0:35:28 > 0:35:31Yes, that might be a better use of space, but as ever,
0:35:31 > 0:35:34do you want to knock a wall down in a leasehold flat?
0:35:34 > 0:35:37Well, if you do, you'll have to do something first.
0:35:39 > 0:35:41# If you've got questions
0:35:41 > 0:35:43# Ask me now. #
0:35:45 > 0:35:48That's right, you'll have to ask the permission of the freeholder
0:35:48 > 0:35:51of the flat if you want to make any changes here.
0:35:51 > 0:35:54Now, they're likely to allow this if the property is being improved,
0:35:54 > 0:35:57but they always have the final call.
0:35:57 > 0:35:58So, do check first.
0:36:02 > 0:36:05But would changing the layout actually be a good idea?
0:36:06 > 0:36:09Time to get a second opinion from a local estate agent.
0:36:09 > 0:36:11I'm keen to hear his thoughts on this one.
0:36:14 > 0:36:16With a layout for the three-bedroom flat,
0:36:16 > 0:36:20I would keep the bathroom separate, kitchen as it is,
0:36:20 > 0:36:24the reception room, I would keep it with a split conversion,
0:36:24 > 0:36:28purely because you could use the second reception as a dining area.
0:36:28 > 0:36:30I guess there are two sides to every argument.
0:36:30 > 0:36:32If you keep the second room,
0:36:32 > 0:36:35is there any chance you could call it a bedroom?
0:36:35 > 0:36:38We wouldn't be able to market this as a four-bedroom flat,
0:36:38 > 0:36:42purely because the additional reception room comes off the lounge.
0:36:42 > 0:36:44The flat itself is very spacious.
0:36:44 > 0:36:46I would say it does require modernising,
0:36:46 > 0:36:48mostly decorative finish.
0:36:48 > 0:36:50Maybe it could be more cost-effective
0:36:50 > 0:36:52to simply bring this property up to date
0:36:52 > 0:36:55and put it on the sales market.
0:36:55 > 0:36:57Once renovated, this property could achieve
0:36:57 > 0:37:01a figure in the region of £200,000 to £225,000.
0:37:01 > 0:37:03And what about rentals?
0:37:03 > 0:37:06This property could achieve somewhere in the region
0:37:06 > 0:37:08of £1,200 to £1,300 per calendar month.
0:37:10 > 0:37:14Yes, it's very dated, but this is a solid spacious flat,
0:37:14 > 0:37:17which seems good value for money - for London, of course.
0:37:17 > 0:37:20So, who is ready to bring it into the 21st century?
0:37:20 > 0:37:23Let's head to auction and find out.
0:37:23 > 0:37:26Five-room Dagenham flat in need of modernisation.
0:37:26 > 0:37:28Who'd like to get me started on this?
0:37:28 > 0:37:30150, I've got.
0:37:30 > 0:37:32152 anywhere?
0:37:32 > 0:37:33152.
0:37:33 > 0:37:36154, 156.
0:37:37 > 0:37:40158. 160. 162.
0:37:40 > 0:37:43164. 166.
0:37:45 > 0:37:47168.
0:37:47 > 0:37:48170.
0:37:48 > 0:37:49172.
0:37:49 > 0:37:54174. No? It's with you, madam. The bid is £172,000.
0:37:54 > 0:37:56It's against the gentlemen here on my right.
0:37:56 > 0:38:01It's £172,000. Anybody else for lot 148?
0:38:01 > 0:38:04174, new place. 176.
0:38:05 > 0:38:06178.
0:38:08 > 0:38:09180.
0:38:09 > 0:38:10182? No?
0:38:10 > 0:38:13It's with you, madam. The bid is £180,000.
0:38:13 > 0:38:15180 for the first.
0:38:15 > 0:38:18180 for the second.
0:38:18 > 0:38:21180 for the third and final time.
0:38:21 > 0:38:23- All done. - GAVEL BANGS
0:38:23 > 0:38:24Sold, 180.
0:38:24 > 0:38:27The bidder looking a bit relieved was Catherine.
0:38:27 > 0:38:31She bought the ground floor Dagenham flat for £180,000
0:38:31 > 0:38:34along with her partner, Kevin.
0:38:34 > 0:38:37Now, Catherine is an artist as well as a developer
0:38:37 > 0:38:38and Kevin is a stonemason.
0:38:42 > 0:38:45They decided to start property developing a year ago
0:38:45 > 0:38:47and this is their third project.
0:38:47 > 0:38:50I'm keen to find out if it's turning into an art form.
0:38:51 > 0:38:53Catherine and Kevin, congratulations.
0:38:53 > 0:38:55I bet you are so thrilled to have got this.
0:38:55 > 0:38:57- Definitely. - We are, we are, definitely.
0:38:57 > 0:38:59So, have you bought this to do up as a project
0:38:59 > 0:39:02or have you bought this for yourselves to live in?
0:39:02 > 0:39:07- Um...- A project.- Yes, it's definitely a project. We plan on...
0:39:07 > 0:39:10- Selling it.- Selling it, yeah.
0:39:10 > 0:39:12We, you know, we try and keep flexible,
0:39:12 > 0:39:13but really we need to sell it
0:39:13 > 0:39:17if we are going to do another project, perhaps, afterwards.
0:39:17 > 0:39:20And are you quite a good team together, would you say?
0:39:20 > 0:39:21- Well...- Sometimes.
0:39:21 > 0:39:24Yeah, no, I think it works quite well considering we are together
0:39:24 > 0:39:26- so much of the time.- Yeah.
0:39:26 > 0:39:31Now, I know you're a professional artist and you're a stonemason.
0:39:31 > 0:39:35How do you combine those two wonderful skills in property?
0:39:35 > 0:39:37Or do you never get the chance to?
0:39:37 > 0:39:40- She does all the colours and designing, I do the work.- Yeah.
0:39:40 > 0:39:44So, you do all the hard graft and you do all the lovely choosing of
0:39:44 > 0:39:46the pallets and the tones and the colours.
0:39:46 > 0:39:48Well, except that it's all white most of the time,
0:39:48 > 0:39:49is what we've done.
0:39:49 > 0:39:51I'm big into white at the moment
0:39:51 > 0:39:54cos it's a blank canvas for people to put their own life into.
0:39:54 > 0:39:56Easy for anyone to put another colour over.
0:39:56 > 0:39:57Yeah, and it's ready to paint.
0:39:57 > 0:39:59But as an artist, that must be very difficult
0:39:59 > 0:40:02cos I know you actually paint murals on walls, don't you?
0:40:02 > 0:40:05Yes, but after 20...blah years doing that,
0:40:05 > 0:40:08it's blissful to just paint walls white, I can't tell you.
0:40:08 > 0:40:13# To me you are
0:40:14 > 0:40:18# A work of art. #
0:40:18 > 0:40:21I may not know much about art, but I know what I don't like
0:40:21 > 0:40:25and I'm certainly not a fan of the textures in this property.
0:40:25 > 0:40:28I wonder what an artist like Catherine makes of the shapes,
0:40:28 > 0:40:30forms and lines on display here.
0:40:33 > 0:40:36Although I am getting used to these ceilings cos I see them everywhere.
0:40:36 > 0:40:38- No, no. No!- They'll come back, they'll come back.
0:40:38 > 0:40:41- They'll come back. - People will be clamouring for them.
0:40:41 > 0:40:43So, are you going to plaster that ceiling?
0:40:43 > 0:40:44Are you going to plaster that?
0:40:44 > 0:40:49- I don't know.- We'll have to... It will depend on cost, obviously.
0:40:49 > 0:40:52So, what sort of budget have you guys got for the work here?
0:40:52 > 0:40:53Well...
0:40:53 > 0:40:58- Depending on how much we do, but I suppose, 15.- Yeah, about 15 grand.
0:40:58 > 0:41:01- OK.- Kitchen, obviously, needs a complete rip out and start again.
0:41:01 > 0:41:05Change the toilet, the flooring, paint, the wood work,
0:41:05 > 0:41:06decorating throughout.
0:41:06 > 0:41:09But we might not be changing the bathroom this time.
0:41:09 > 0:41:12- OK, so you might leave the bathroom as it is.- Yeah.
0:41:12 > 0:41:15Another thing I need to ask you is this little room behind,
0:41:15 > 0:41:18do you think you will keep it as an extra room
0:41:18 > 0:41:20or open the space up to have
0:41:20 > 0:41:23a really nice double-aspect, large room?
0:41:23 > 0:41:25- Well...- What are your thoughts?
0:41:25 > 0:41:27- Like to open it up. - We would like to.
0:41:27 > 0:41:31But if someone's coming here to rent, when we're passing it on,
0:41:31 > 0:41:34they might want it as a fourth bedroom, which it isn't.
0:41:34 > 0:41:38We've hummed and hawed already, but I mean, even if we take it down,
0:41:38 > 0:41:41it's easy for somebody to put one back.
0:41:41 > 0:41:44So, any other structural changes that you're thinking about making?
0:41:44 > 0:41:46We applied to have the windows out
0:41:46 > 0:41:49and put bifold doors in the other end.
0:41:49 > 0:41:52- Really?- Open air to that nice bit of space outside.
0:41:52 > 0:41:53Now, you've got fantastic space outside,
0:41:53 > 0:41:55- but it doesn't come with the flat, does it?- No.
0:41:55 > 0:41:58- It's not part of this building, is it?- No, it's not.
0:41:58 > 0:42:01- It's probably owned by the council. - Yeah. Yeah, but...
0:42:01 > 0:42:03It's a nice bit of land you can use.
0:42:03 > 0:42:05Do you think you'll get permission for that or not?
0:42:05 > 0:42:09Some of the others have had it, so we're just waiting to find out.
0:42:09 > 0:42:11So, come on, what do you realistically think?
0:42:11 > 0:42:14How long will it take you to renovate this up to your standard?
0:42:14 > 0:42:18Well, we think... We were discussing it and thinking about four months.
0:42:18 > 0:42:20Cos we're not sure when we can get started.
0:42:20 > 0:42:21We're working elsewhere
0:42:21 > 0:42:24doing up a two-bedroom house around the corner
0:42:24 > 0:42:26and then we're going to have a holiday this year.
0:42:26 > 0:42:28Yes, we haven't had a holiday yet, so...
0:42:28 > 0:42:31- Gone from one job to another. - Any chance of any...
0:42:31 > 0:42:34beautiful murals on the walls in any of the rooms, do you think?
0:42:34 > 0:42:35But it's so time-consuming.
0:42:35 > 0:42:38I don't know whether it would pay, that's the thing.
0:42:38 > 0:42:40Can I afford myself, really?
0:42:40 > 0:42:42And someone might not like it.
0:42:42 > 0:42:45- And what are you going to do it of anyway?- Exactly.- Yeah.
0:42:45 > 0:42:48You know, one person's beautiful mural is another person's...
0:42:48 > 0:42:51- Nightmare.- Well, I'll tell you what, if there's no mural,
0:42:51 > 0:42:54I'm expecting some very well-painted walls.
0:42:54 > 0:42:55Guys, I've loved meeting you today.
0:42:55 > 0:42:57Congratulations and I'm so pleased
0:42:57 > 0:42:59that this property fell in the laps of you two
0:42:59 > 0:43:02because I think you are going to make it look fantastic.
0:43:02 > 0:43:05- Thank you.- Well done. - Thank you very much.- Catherine.
0:43:05 > 0:43:06- Kevin, lovely to meet you.- Cheers.
0:43:06 > 0:43:08Well, it's a shame
0:43:08 > 0:43:11we won't see any of Catherine's colourful murals here,
0:43:11 > 0:43:13only shades of white allowed.
0:43:13 > 0:43:15Still, I'm looking forward to seeing
0:43:15 > 0:43:18the transformation of this dated '70s flat.
0:43:18 > 0:43:21Who better to take this on than Kevin and Catherine?
0:43:21 > 0:43:26Join me later on in the programme and you can see how it turns out.
0:43:28 > 0:43:31- So, we've seen how one of our buyers has done.- What about the other two?
0:43:31 > 0:43:34- Will their hard work have paid off? - Let's find out.
0:43:38 > 0:43:39Earlier in the show,
0:43:39 > 0:43:42I was in the city renowned for its football and its music - Liverpool.
0:43:44 > 0:43:45I popped into a property in Prescot
0:43:45 > 0:43:48and a very well situated auction lot it was too.
0:43:51 > 0:43:54It's on the street that has a corner shop
0:43:54 > 0:43:57and a pub just across the road as well.
0:43:57 > 0:43:58And here's our house.
0:43:58 > 0:44:03It has three bedrooms and a guide price of £45,000-plus.
0:44:03 > 0:44:04Let's get inside.
0:44:04 > 0:44:07Or should we go to the pub? No, let's get inside.
0:44:07 > 0:44:10A stiff drink might have just been the tonic
0:44:10 > 0:44:13or an ale, in my case, before seeing this place.
0:44:13 > 0:44:16The property offered good space and a kitchen and bathroom
0:44:16 > 0:44:19that with a bit of a clean-up could be salvaged.
0:44:19 > 0:44:21There were noticeable signs of damp, though,
0:44:21 > 0:44:26and huge cracks that indicated this house had been moving.
0:44:26 > 0:44:28# Cracking up
0:44:28 > 0:44:30# I'm getting ready to go
0:44:30 > 0:44:31# Had enough. #
0:44:31 > 0:44:34Apart from the cracks and the damp, it's not bad at all.
0:44:38 > 0:44:41Tom and his partner, Nicky, bought this property for £50,000
0:44:41 > 0:44:43to add to their rental portfolio.
0:44:45 > 0:44:48I'm a big fan of doing your research and a quick gab with the neighbours
0:44:48 > 0:44:52gave them some comfort about the potential movement of the house.
0:44:53 > 0:44:57There was a leak in the street quite a few years ago
0:44:57 > 0:45:00and a few of the houses were moving down,
0:45:00 > 0:45:02had the fronts dropped and works done.
0:45:02 > 0:45:04And they've checked all the houses for movement
0:45:04 > 0:45:07because of the leak and all the works have been done.
0:45:07 > 0:45:09Cos it's been a long time empty,
0:45:09 > 0:45:11I think it's just a little bit of settlement
0:45:11 > 0:45:13and the ground drying out after that.
0:45:16 > 0:45:21Those cracks could be easily solved as Tom was a plasterer by trade.
0:45:21 > 0:45:23He'd have the help of his son Thomas
0:45:23 > 0:45:26with Nicky organising things over a two-month timescale
0:45:26 > 0:45:29and a two to three grand budget.
0:45:32 > 0:45:36We are now back six months on and as it's a city famous for its music,
0:45:36 > 0:45:39I wanted to use my favourite Liverpool band to accompany
0:45:39 > 0:45:42the family's handiwork. RECORD SCRATCHES
0:45:42 > 0:45:44MUSIC: Whole Again by Atomic Kitten
0:45:44 > 0:45:47It's Atomic Kitten, of course. Who did you think I was talking about?
0:45:47 > 0:45:50Anyway, inside, thanks to Tom's plastering,
0:45:50 > 0:45:52those cracks are long forgotten.
0:45:52 > 0:45:56# Looking back on when we first met
0:45:56 > 0:46:01# I cannot escape and I cannot forget
0:46:01 > 0:46:04# Baby, you're the one
0:46:04 > 0:46:06# You still turn me on
0:46:07 > 0:46:10# You can make me whole again. #
0:46:11 > 0:46:16So, this house is whole again and it's a property without damp.
0:46:18 > 0:46:22There was a bit of damp in the property in certain areas
0:46:22 > 0:46:26and it all got hacked off a metre high, got a membrane put on it
0:46:26 > 0:46:30and I floated and skimmed with a waterproof sand cement.
0:46:30 > 0:46:32So it shouldn't come back at all.
0:46:34 > 0:46:37Tom also replaced fascias and guttering at the back
0:46:37 > 0:46:41and flashing on the roof, so this house is now watertight.
0:46:43 > 0:46:45Tom has also dropped several ceilings
0:46:45 > 0:46:47and re-plastered throughout.
0:46:48 > 0:46:51I skimmed the middle bedroom, I skimmed the front bedroom,
0:46:51 > 0:46:53I dropped the back bedroom ceiling
0:46:53 > 0:46:56and then because that part of the building is separate
0:46:56 > 0:46:59to the loft of this part, it all got re-insulated
0:46:59 > 0:47:01and re-plaster boarded and re-skimmed.
0:47:03 > 0:47:05And while Tom and Nicky have worked quickly,
0:47:05 > 0:47:10general life has put paid to their two-month timescale.
0:47:10 > 0:47:14The biggest challenge was basically squeezing it into everyday life.
0:47:14 > 0:47:18It took about five months mostly due to me having a full-time job.
0:47:18 > 0:47:21Nicky works part-time, nights and then having four kids,
0:47:21 > 0:47:25holidays and generally just life itself.
0:47:27 > 0:47:29They could have been quicker
0:47:29 > 0:47:32if Tom had had the help of his 14-year-old son Thomas,
0:47:32 > 0:47:34but unfortunately, in a roundabout way,
0:47:34 > 0:47:36the teenager came a cropper.
0:47:37 > 0:47:40He did start with good intentions
0:47:40 > 0:47:43and then ended up falling off a roundabout and snapped his ankle,
0:47:43 > 0:47:46so didn't end up giving me a hand.
0:47:47 > 0:47:50Ouch! My old traffic debut comes to mind.
0:47:50 > 0:47:52Anyway, get well soon, Thomas.
0:47:52 > 0:47:54But it's not the only thing to break around here.
0:47:54 > 0:47:56With added costs like council tax,
0:47:56 > 0:47:59they have smashed through their two to three grand budget,
0:47:59 > 0:48:02spending 4,500 grand.
0:48:02 > 0:48:04But are they happy with the impressive results?
0:48:04 > 0:48:06Yeah, my favourite part about the house,
0:48:06 > 0:48:10which no-one really noticed, is the keystone above the front door.
0:48:10 > 0:48:13Cos as I was cleaning it off, all the sand cement came away
0:48:13 > 0:48:17and I've reformed it, so it looks like the original.
0:48:17 > 0:48:20I just like it's all done. There's no hassle now.
0:48:22 > 0:48:26And now that it's done, Nicky, what's the plan?
0:48:26 > 0:48:28We were originally going to be renting it out.
0:48:28 > 0:48:31That's what the plan is - is to still rent it out.
0:48:32 > 0:48:35In that case, you will need the opinion of two local estate agents
0:48:35 > 0:48:37that we've asked along.
0:48:37 > 0:48:39What do they think of the end product?
0:48:40 > 0:48:42This is the first time I've seen this property
0:48:42 > 0:48:44and I'm really impressed.
0:48:44 > 0:48:47The main selling features of this property are certainly the location.
0:48:47 > 0:48:49It's positioned close to town
0:48:49 > 0:48:52and should sell very well when it comes to the marketplace.
0:48:52 > 0:48:54So, when I first walked into the property,
0:48:54 > 0:48:57my initial reaction was it was finished to a very high standard.
0:48:57 > 0:48:59I liked the fact how it's very neutral and it's very laid out.
0:48:59 > 0:49:01It would appeal to both the sales market
0:49:01 > 0:49:03and the rental market as well.
0:49:05 > 0:49:08Tom and Nicky have spent 54,500 grand buying
0:49:08 > 0:49:11and renovating this Prescot pad.
0:49:11 > 0:49:13What kind of rental valuations could they expect
0:49:13 > 0:49:17and could the sales values tip them in that direction?
0:49:17 > 0:49:20So, with the resale value of this property,
0:49:20 > 0:49:23I'd be looking to advertise the property
0:49:23 > 0:49:25at between £80,000 to £85,000.
0:49:25 > 0:49:27And if you were looking to rent the property,
0:49:27 > 0:49:30I'd be looking at a rental of £500 per calendar month.
0:49:30 > 0:49:33If I was positioning this property onto market for sale,
0:49:33 > 0:49:35we'd be looking at a figure of £85,000 and for rent,
0:49:35 > 0:49:38we'd be looking at a figure of £550 per calendar month.
0:49:40 > 0:49:44That top figure of 550 quid per calendar month gives them
0:49:44 > 0:49:46a very good 12% yield.
0:49:46 > 0:49:47What do they think of that?
0:49:49 > 0:49:52- Quite happy with that. - Very happy with that, yeah.
0:49:52 > 0:49:54More than we expected.
0:49:54 > 0:49:59Speaking of unexpected things, that top resell value of 85 grand
0:49:59 > 0:50:04would give them a pre-tax profit of £30,500.
0:50:05 > 0:50:08For four months of Saturdays,
0:50:08 > 0:50:10not a bad way to spend your Saturday.
0:50:10 > 0:50:12I might change careers,
0:50:12 > 0:50:15become a property developer instead of a plasterer.
0:50:15 > 0:50:17It looks like they will stick with the rental option,
0:50:17 > 0:50:20but will Tom stick with plastering?
0:50:20 > 0:50:23Before any career change, he has to down tools
0:50:23 > 0:50:26and go back to the most important job in his life -
0:50:26 > 0:50:27being a dad of four.
0:50:30 > 0:50:33It's been an enjoyable experience, but now that it's done,
0:50:33 > 0:50:35I think it's time to spend a bit of time with the kids,
0:50:35 > 0:50:37- spoil the kids a bit. - Especially the little one.
0:50:37 > 0:50:39He always wants to come with you.
0:50:39 > 0:50:40Cos he never sees you.
0:50:47 > 0:50:50We're back in Dagenham, London to see this three-bedroom flat
0:50:50 > 0:50:54that I felt was...well, a bit stuck in the past.
0:50:54 > 0:50:57There's a lot - and when I say a lot, I mean an awful lot -
0:50:57 > 0:51:00of textured painted walls.
0:51:00 > 0:51:02You've got a fan effect up there.
0:51:02 > 0:51:05I mean, it's all very '70s and it needs updating.
0:51:06 > 0:51:09But all the rooms were very good sizes
0:51:09 > 0:51:11although I did think of something that might work better
0:51:11 > 0:51:13in the two reception rooms.
0:51:14 > 0:51:17By simply taking down this partition,
0:51:17 > 0:51:19it would just open this space up nicely
0:51:19 > 0:51:22and I think for a young family or a couple, even,
0:51:22 > 0:51:24it would just be so much a nicer way to live
0:51:24 > 0:51:29to have one big room rather than two small rooms.
0:51:29 > 0:51:31Of course, some things work better in pairs
0:51:31 > 0:51:35and that might be the case with the buyers of this property.
0:51:35 > 0:51:39Catherine and her partner, Kevin, paid £180,000 for this flat
0:51:39 > 0:51:44at auction and they actually didn't mind the dated textured ceilings.
0:51:46 > 0:51:48Although I am getting used to these ceilings
0:51:48 > 0:51:49cos I see them everywhere.
0:51:49 > 0:51:51- No, no. No!- They'll come back, they'll come back.
0:51:51 > 0:51:54- They'll come back. - People will be clamouring for them.
0:51:54 > 0:51:56So, are you going to plaster that ceiling?
0:51:56 > 0:51:59- Are you going to plaster that? - I don't know.
0:51:59 > 0:52:02Well...it will depend on cost, obviously.
0:52:03 > 0:52:07Well, it's time to find out if they did re-plaster those ceilings
0:52:07 > 0:52:09and, of course, do the rest of the work.
0:52:11 > 0:52:16They said it would take them four months to turn this project around
0:52:16 > 0:52:19and we are back a whole month early to see how they've got on.
0:52:20 > 0:52:24# Stop me, oh-ho-ho, stop me
0:52:24 > 0:52:28# Stop me if you think that you've heard this one before
0:52:28 > 0:52:31# Stop me, oh-ho-ho, stop me
0:52:31 > 0:52:36# Stop me if you think that you've heard this one before
0:52:36 > 0:52:38# Nothing's changed. #
0:52:38 > 0:52:41Yeah, Morrissey, I could not have put it better myself.
0:52:41 > 0:52:45Nothing has changed. And heaven knows, I'm miserable now.
0:52:45 > 0:52:49Those textured surfaces are still there and so is everything else.
0:52:49 > 0:52:52Well, nearly everything.
0:52:52 > 0:52:55# Who said I lied? Because I never
0:52:55 > 0:52:56# I never
0:52:56 > 0:52:59# Who said I lied? Because I never. #
0:53:00 > 0:53:03The carpet no longer lies on the floor.
0:53:03 > 0:53:06Time to ask Catherine what's been going on
0:53:06 > 0:53:08or rather, what's not being going on.
0:53:11 > 0:53:16Well, as you can see, nothing has changed except for the carpet.
0:53:16 > 0:53:22Well, we took away the carpet because it stank, frankly, and...
0:53:22 > 0:53:26that's about all we felt was necessary, so that's...
0:53:26 > 0:53:27We just dumped it.
0:53:27 > 0:53:29# Why don't you come with me little girl
0:53:29 > 0:53:31# On a magic carpet ride? #
0:53:33 > 0:53:36Catherine and Kevin didn't have time to do anything else
0:53:36 > 0:53:38as they had other projects on.
0:53:38 > 0:53:41So they decided after a few months, it was worth just putting it
0:53:41 > 0:53:44on the market to see if there would be any interest.
0:53:47 > 0:53:51So, we thought, "OK, well, let's see what happens."
0:53:51 > 0:53:52And it sold.
0:53:52 > 0:53:58So an offer was made that we couldn't refuse, so we took it.
0:54:00 > 0:54:03And with only the carpet to take care of, they didn't have to
0:54:03 > 0:54:06don their work clothes for very long.
0:54:08 > 0:54:11It took three hours' work. Good, solid, on our hands and knees,
0:54:11 > 0:54:15taking up the carpet and taking it to the tip.
0:54:15 > 0:54:17A little bit less than we'd imagined, really.
0:54:17 > 0:54:19Washing up the floor. Yeah, about three hours.
0:54:19 > 0:54:22- Yeah.- It was hard, hard work.- Yeah.
0:54:22 > 0:54:25Hm, so not the most taxing renovation we've had on
0:54:25 > 0:54:26Homes Under The Hammer.
0:54:26 > 0:54:28But it has laid empty for three months now
0:54:28 > 0:54:31whilst Catherine and Kevin have been on holiday
0:54:31 > 0:54:33and finishing off other projects.
0:54:33 > 0:54:36So, have they incurred any other costs with this
0:54:36 > 0:54:38other than the agent's fees?
0:54:39 > 0:54:42- Oh, well, there's some... - Not really.
0:54:42 > 0:54:45..service charge as it's a leasehold flat.
0:54:45 > 0:54:49That's the costs that we've had.
0:54:49 > 0:54:53- Nothing.- You know, coming, having a look, picking up the post
0:54:53 > 0:54:55and going for breakfast afterwards.
0:54:55 > 0:54:57That's about it, really, for costs.
0:54:58 > 0:55:02They had planned to spend £10,000 to £15,000 on the work,
0:55:02 > 0:55:05but instead, they've spent 300 quid on service charges,
0:55:05 > 0:55:08£210 on council tax
0:55:08 > 0:55:11and a few quid on some cuppas from the local caff.
0:55:11 > 0:55:13So, there is plenty of money left in the pot.
0:55:17 > 0:55:20We asked two local estate agents along to tell us
0:55:20 > 0:55:23if the offer Catherine and Kevin felt they couldn't refuse
0:55:23 > 0:55:24was the best one possible.
0:55:25 > 0:55:28And at least we have one makeover to show you
0:55:28 > 0:55:32and that's the agent who came to see it last time.
0:55:32 > 0:55:35Look. Before.
0:55:35 > 0:55:36And now after.
0:55:36 > 0:55:39I like the new look, Nitan.
0:55:39 > 0:55:41Anyway, back to the task in hand here.
0:55:41 > 0:55:43Let's get the agents thoughts on the property.
0:55:43 > 0:55:45Not much has changed,
0:55:45 > 0:55:49but the property still requires updating and modernising.
0:55:49 > 0:55:52That's true, but what about that carpet?
0:55:52 > 0:55:55By them removing the carpet, I think it's made life easier
0:55:55 > 0:55:56for the next buyer.
0:55:56 > 0:56:00Easy seems to be the byword for this particular project.
0:56:00 > 0:56:03Is the other surprise that the flat has been easy to sell
0:56:03 > 0:56:04in its current state?
0:56:05 > 0:56:08I'm not surprised that this has still gained interest
0:56:08 > 0:56:11because at the moment, the market is very hot.
0:56:11 > 0:56:14There's a lot of demand for the Dagenham area.
0:56:15 > 0:56:19Catherine and Kevin bought the flat for 180,000 and have spent
0:56:19 > 0:56:23about 500 quid on expenses, not including cups of tea.
0:56:23 > 0:56:25What if they had renovated the property?
0:56:25 > 0:56:28What could it potentially sell for?
0:56:28 > 0:56:32And certainly you would market the property around 235,000.
0:56:32 > 0:56:33Once renovated,
0:56:33 > 0:56:39the property could achieve somewhere in the region of £245,000.
0:56:39 > 0:56:44On the face of it, that's a potential profit of £64,500,
0:56:44 > 0:56:47but they would have probably spent their £15,000 budget,
0:56:47 > 0:56:52leaving them with a potential £49,500 profit.
0:56:54 > 0:56:57So, what resale value would they put on it in this condition
0:56:57 > 0:57:04and have the couple missed out on a £49,500 profit?
0:57:04 > 0:57:07If I was to value this property in its current condition,
0:57:07 > 0:57:11I would look towards a price of around £205,000.
0:57:11 > 0:57:14At the present time, in the present condition,
0:57:14 > 0:57:18the property should be valued in the region of £230,000.
0:57:18 > 0:57:20- Yeah, we've had an offer on it... - Yeah.
0:57:20 > 0:57:22..we're quite happy with.
0:57:22 > 0:57:26- In between them two, so...- Yeah, so we think...
0:57:26 > 0:57:28It's a good profit.
0:57:28 > 0:57:31- Yeah, we're happy with how it's gone.- For no work.
0:57:31 > 0:57:36In fact, the couple accepted an offer of £225,000.
0:57:36 > 0:57:40That means a pre-tax profit of 44,500 quid,
0:57:40 > 0:57:43only five grand less than what they would have made
0:57:43 > 0:57:46if they'd have done all that work.
0:57:46 > 0:57:47So, what do they make of that?
0:57:49 > 0:57:52- Good timing.- Well, you've got to be in it to do it.- To win it.
0:57:52 > 0:57:55To win it, but, you know? Yeah.
0:57:55 > 0:57:57Unlikely for this to happen again.
0:57:57 > 0:58:01- It's lovely too, but unlikely.- Yeah.
0:58:02 > 0:58:04- Like winning the lottery.- Mm-hm.
0:58:08 > 0:58:11Well, as you can see, property developing can be
0:58:11 > 0:58:14a huge learning curve, even for seasoned professionals.
0:58:14 > 0:58:17And hopefully, we've given you some insight.
0:58:17 > 0:58:19Yes, so join us next time for more Homes Under The Hammer.
0:58:19 > 0:58:21- We'll see you then. - Goodbye.- Goodbye.