0:00:02 > 0:00:03Hello and welcome to the show.
0:00:03 > 0:00:06Being a full-time property developer is a dream job for many people.
0:00:06 > 0:00:09But before you give up your day job, there's a lot to consider.
0:00:09 > 0:00:12Yes, it can be a risky business with lots of uncertainty
0:00:12 > 0:00:15and things coming out of the woodwork you weren't expecting.
0:00:15 > 0:00:18But it can be a very rewarding and fulfilling career.
0:00:18 > 0:00:20But where do you start?
0:00:20 > 0:00:23How about buying your next home under the hammer?
0:00:49 > 0:00:52It's extremely satisfying to take a rundown property
0:00:52 > 0:00:54and turn it into a beautiful new home.
0:00:54 > 0:00:56But it's very hard work!
0:00:56 > 0:00:58Yes, I can testify to that, Lucy.
0:00:58 > 0:01:01But how did today's buyers get on?
0:01:01 > 0:01:02There's only one way to find out.
0:01:04 > 0:01:09Coming up, Lucy has lofty ideas for this former ambulance HQ in East Sussex.
0:01:09 > 0:01:10These lovely beams!
0:01:10 > 0:01:12But what could this become?
0:01:14 > 0:01:18This two bed mid-terrace in Retford needs a loft investigation.
0:01:18 > 0:01:20We have a problem here.
0:01:20 > 0:01:24Not sure what's causing that, but it doesn't look good.
0:01:24 > 0:01:26And in Erith, Kent,
0:01:26 > 0:01:30words fail me on the length of this two-bed mid-terrace.
0:01:30 > 0:01:32Through the kitchen you'd come to... A bit further...
0:01:32 > 0:01:34Stop, stop, stop!
0:01:36 > 0:01:38All these properties have been sold at auction,
0:01:38 > 0:01:41and we'll find out who bought them and what they paid
0:01:41 > 0:01:43when they went under the hammer.
0:01:47 > 0:01:51Lucy's in East Sussex, in the charming town of Seaford.
0:01:51 > 0:01:53It's only 11 miles from Brighton
0:01:53 > 0:01:56and an hour on the train from London Victoria.
0:01:56 > 0:01:58So you can work in the city, but live by the sea.
0:02:00 > 0:02:03# I left my soul there
0:02:03 > 0:02:07# Down by the sea
0:02:07 > 0:02:09# Lost control of me... #
0:02:09 > 0:02:14The property I'm here to see today is right in Seaford town centre.
0:02:14 > 0:02:18But it's set back along this fairly quiet little lane.
0:02:18 > 0:02:22Now, one negative - there is no off-street parking, as you can see.
0:02:22 > 0:02:25We are literally just a few minutes' walk from the train station,
0:02:25 > 0:02:27which is good, and the town centre.
0:02:27 > 0:02:28So, not too bad.
0:02:28 > 0:02:30Here's the property.
0:02:30 > 0:02:32It's a former St John's Ambulance building
0:02:32 > 0:02:37and it went to auction with a guide price of £100,000.
0:02:39 > 0:02:41So what do we have?
0:02:41 > 0:02:42Hmm, a small hallway.
0:02:42 > 0:02:45You've got a couple of loos at the end there.
0:02:45 > 0:02:49And into one big, large room.
0:02:49 > 0:02:53Yeah, it's got that sort of underground feeling.
0:02:53 > 0:02:54Bit hemmed in.
0:02:54 > 0:02:56Got the kitchen area over here.
0:02:56 > 0:02:59Now, I think this was used for meetings and training.
0:02:59 > 0:03:02You can imagine them practising their CPR in here.
0:03:02 > 0:03:04So you've got a big space
0:03:04 > 0:03:08and I think it's about 591 square foot in total.
0:03:08 > 0:03:11But I can smell and I can see damp over here.
0:03:11 > 0:03:13Come and look at this.
0:03:13 > 0:03:14It's a stone wall.
0:03:14 > 0:03:15It's below ground level,
0:03:15 > 0:03:18so there's no cavity to keep out the damp and keep in the heat.
0:03:18 > 0:03:22So some sort of tanking will definitely need to be used,
0:03:22 > 0:03:23and damp proofing.
0:03:23 > 0:03:25But I think it's a good start.
0:03:25 > 0:03:28You've certainly got a lot of space to play with.
0:03:28 > 0:03:32That damp and the underground feel comes from the fact
0:03:32 > 0:03:35that one wall is well below ground level.
0:03:35 > 0:03:37A close inspection of the outside space reveals
0:03:37 > 0:03:39this isn't the only issue.
0:03:39 > 0:03:43It doesn't belong to this building, so there'll be no extensions here.
0:03:46 > 0:03:48# I want you
0:03:48 > 0:03:51# I want you
0:03:51 > 0:03:54# I want you so bad... #
0:03:57 > 0:03:58Well, that's just tough.
0:03:58 > 0:04:01You'll have to make do with what's inside!
0:04:01 > 0:04:03So, with that in mind, what's going on upstairs?
0:04:07 > 0:04:10So upstairs, another big room.
0:04:10 > 0:04:12Wow! It is vast.
0:04:12 > 0:04:15There's two separate rooms off.
0:04:15 > 0:04:17And, as you can see, it's opened up to the eaves.
0:04:17 > 0:04:19Lots of light, lots of windows.
0:04:19 > 0:04:21These lovely beams.
0:04:21 > 0:04:23But what could this become?
0:04:23 > 0:04:26Now currently this building has got D1 business usage.
0:04:26 > 0:04:30But I don't think this will make a great commercial premises.
0:04:30 > 0:04:34It's off the beaten track up this lane. The access is difficult here.
0:04:34 > 0:04:36There'll be no passing trade at all.
0:04:36 > 0:04:38I suppose it could be offices,
0:04:38 > 0:04:43or you could use it as storage or even a showroom, possibly.
0:04:43 > 0:04:48But another option is to convert this into a residential dwelling.
0:04:48 > 0:04:51You could have two little one-bed flats here.
0:04:51 > 0:04:55But I think this would make a fabulous two-bed house.
0:04:55 > 0:04:57It would be open with loads of character.
0:04:57 > 0:05:01But let's not forget there's no outside space and there's no parking,
0:05:01 > 0:05:04and you will need to apply for planning permission.
0:05:04 > 0:05:07And, of course, there's no guarantee you'd get it.
0:05:07 > 0:05:08Very true, Lucy.
0:05:08 > 0:05:11I think we've learned by now on Homes Under The Hammer
0:05:11 > 0:05:14that nothing should ever be presumed.
0:05:14 > 0:05:19However, there was a letter in the legal pack at auction from the planning department
0:05:19 > 0:05:23which stated it would not be anticipated that there would be
0:05:23 > 0:05:27any objection to a change back to residential premises.
0:05:27 > 0:05:31It's no guarantee, but it's certainly a positive start.
0:05:31 > 0:05:35Changing to residential seems like the obvious thing to do here.
0:05:37 > 0:05:40But what about the opinion of someone who knows the area?
0:05:40 > 0:05:42We asked along a local estate agent to find out.
0:05:45 > 0:05:47With a commercial basis,
0:05:47 > 0:05:50you're very, very limited due to the access routes to here.
0:05:50 > 0:05:53So my personal thoughts, if I owned this,
0:05:53 > 0:05:58I'd be looking to pursue the two one-bedroom flats, as it produces
0:05:58 > 0:06:02the greatest return and will have the most appeal to a wider market.
0:06:04 > 0:06:06That's what we thought.
0:06:06 > 0:06:09But let's be honest, converting this old building for residential use
0:06:09 > 0:06:13will be far more expensive than leasing it as a commercial property.
0:06:13 > 0:06:16So would the increase in income make it worthwhile?
0:06:18 > 0:06:22If you kept the property as a commercial basis,
0:06:22 > 0:06:27I believe you could achieve a rental figure of around £6,500 a year.
0:06:27 > 0:06:30If the property were converted into one-bedroom flats, I believe
0:06:30 > 0:06:32you could achieve a rental
0:06:32 > 0:06:35of around £675 to £700 per calendar month.
0:06:35 > 0:06:38That's up to £700 per month for each flat,
0:06:38 > 0:06:43so you could expect a rental income of over £16,000 a year.
0:06:43 > 0:06:44Very tempting.
0:06:46 > 0:06:49What if you wanted to convert it to two flats and sell them?
0:06:49 > 0:06:52What value could be achieved there?
0:06:54 > 0:06:57If the property were converted into one-bed flats,
0:06:57 > 0:07:00I believe the resale value would be in the region of £125,000 each.
0:07:03 > 0:07:06Well, I've no doubt that this former meeting hall is set to be
0:07:06 > 0:07:09transformed into something else entirely.
0:07:09 > 0:07:11But will it stay as a commercial premises,
0:07:11 > 0:07:13or will it become residential?
0:07:13 > 0:07:15So many options with this one, so many choices.
0:07:15 > 0:07:18But which one will the new owner go for?
0:07:18 > 0:07:21Let's find out who brought this at auction.
0:07:21 > 0:07:25Whoopsie-doodle-do, we missed this particular lot at the auction,
0:07:25 > 0:07:27so can't bring you the footage.
0:07:27 > 0:07:33But the former St John's Ambulance building did sell for £137,500.
0:07:34 > 0:07:36Sold.
0:07:36 > 0:07:39That successful bid was made by Seaford-based Phil,
0:07:39 > 0:07:42here on the left, who runs his own estate agency.
0:07:42 > 0:07:45He bought the property in partnership with his brother Greg,
0:07:45 > 0:07:46who's a builder.
0:07:46 > 0:07:50Could their respective talents make for the perfect property developing duo?
0:07:50 > 0:07:53Let's get Lucy to find out.
0:07:53 > 0:07:55- Phil and Greg, congratulations. - Thank you.
0:07:55 > 0:07:58Now, this is a rather unusual building, isn't it?
0:07:58 > 0:08:00It used to be a St John's Ambulance,
0:08:00 > 0:08:03and you guys are now looking to turn it into some sort of home, aren't you?
0:08:03 > 0:08:06That's the idea, yeah. We bought it at the auction.
0:08:06 > 0:08:09The plan is to make it into residential from commercial,
0:08:09 > 0:08:11subject to getting the planning on it.
0:08:11 > 0:08:14We're probably going to go for a two-bedroom property.
0:08:14 > 0:08:16Now, for the money you paid on auction day, you've got quite
0:08:16 > 0:08:20a lot of square footage here because it's a fantastic building, isn't it?
0:08:20 > 0:08:23Yeah, it's a bit grim at the moment. But the square footage is good
0:08:23 > 0:08:25so it will be a nice size once it's finished.
0:08:25 > 0:08:28Hopefully we can turn it into something quite special.
0:08:28 > 0:08:31Now, Greg, you are the building part of the combo brotherhood.
0:08:31 > 0:08:34Have you guys done projects together in the past?
0:08:34 > 0:08:36We've done a few.
0:08:36 > 0:08:38This is probably our fifth or sixth one now, I suppose.
0:08:38 > 0:08:42Yeah, they go well. We argued a bit, but...
0:08:42 > 0:08:43So, Phil, how does it work out?
0:08:43 > 0:08:46Who's the older brother? Who's the bossy brother?
0:08:46 > 0:08:47I'm the older.
0:08:47 > 0:08:48Only just.
0:08:48 > 0:08:50And slightly bossier.
0:08:50 > 0:08:53- "Only just"?- Better-looking, apparently. So they tell me.
0:08:53 > 0:08:54SHE LAUGHS
0:08:54 > 0:08:56Yes, we argue.
0:08:56 > 0:08:57But, yeah...
0:08:57 > 0:09:00We seem to forget about it the following day, don't we?
0:09:00 > 0:09:03Yeah, we have a big row on the one day,
0:09:03 > 0:09:05then we're having a beer in the pub the next.
0:09:05 > 0:09:07It's short lived.
0:09:07 > 0:09:09- You really do argue?- Oh, yes.
0:09:09 > 0:09:11Do you?
0:09:11 > 0:09:14I'm always right... Well, I'm not right. Greg's...
0:09:14 > 0:09:18- You think you're right, but Greg IS right? Is that right?- Yes!
0:09:18 > 0:09:21He's a good builder, he's been doing it all his life
0:09:21 > 0:09:24and I've been doing my job all my life, so it really works out well.
0:09:24 > 0:09:28# Cos we got a good combination
0:09:28 > 0:09:31# Yeah, we got a good combination
0:09:31 > 0:09:34# Yeah, oh, yeah! #
0:09:36 > 0:09:40Well, Lucy, it seems like you're talking to the perfect combo -
0:09:40 > 0:09:41a builder and an estate agent.
0:09:41 > 0:09:46As long as they don't let brotherly bickering get in the way, that is.
0:09:46 > 0:09:50They've decided to convert this into a single residential property
0:09:50 > 0:09:52as they believe it will take less time and expense
0:09:52 > 0:09:54than converting it into two flats.
0:09:54 > 0:09:58That's not to say there won't be a lot of work to do.
0:10:01 > 0:10:06Down here, it's got that sort of underground just below floor level
0:10:06 > 0:10:07feeling about it.
0:10:07 > 0:10:11Yeah, it's low on this one side here cos it's got a higher level outside.
0:10:11 > 0:10:15So, with that in mind, rather than having the living accommodation
0:10:15 > 0:10:16on the ground floor,
0:10:16 > 0:10:20we've decided to put the lounge and kitchen upstairs on the first floor,
0:10:20 > 0:10:22have the bedrooms downstairs.
0:10:22 > 0:10:23So it'll be an upside-down house?
0:10:23 > 0:10:26It will be upside down, which is slightly unusual.
0:10:26 > 0:10:27I'm not worried about it.
0:10:27 > 0:10:29It's not ideal, but I think it's probably ideal for this building.
0:10:29 > 0:10:31I think it will work like that
0:10:31 > 0:10:33because to have all the lovely vaulted ceilings
0:10:33 > 0:10:35and the living space upstairs,
0:10:35 > 0:10:37which is how you'd prefer to live, I think.
0:10:37 > 0:10:40Yeah, I think so. We want to make the best of the rooms we've got.
0:10:40 > 0:10:44They definitely work better that way round, I think.
0:10:44 > 0:10:46Big downside - no parking, no garden.
0:10:46 > 0:10:49You're going to completely narrow your market with that.
0:10:49 > 0:10:50The parking is a slight issue
0:10:50 > 0:10:52but there is lots of street parking nearby.
0:10:52 > 0:10:54We're going to create a courtyard as well.
0:10:54 > 0:10:58There's a toilet and lean-to area which is along the side,
0:10:58 > 0:10:59which is going to come down.
0:10:59 > 0:11:03We're going to put a little courtyard in there with a gate on the front
0:11:03 > 0:11:06so it will be like a gated mews-y type thing, I suppose.
0:11:06 > 0:11:07Smart move.
0:11:07 > 0:11:11And it demonstrates Phil's knowledge of the local property market.
0:11:11 > 0:11:12By creating a courtyard,
0:11:12 > 0:11:15Greg and Phil are trying to broaden the property's appeal
0:11:15 > 0:11:19by negating one of its downsides - the lack of a garden.
0:11:19 > 0:11:22However, it will add more work.
0:11:22 > 0:11:24The brothers have a budget of £30,000.
0:11:24 > 0:11:27Even using their own team of workmen and labourers,
0:11:27 > 0:11:30that's not a huge amount. So, what about timescale?
0:11:33 > 0:11:36I think once we've got the planning, it's going to be, what...
0:11:36 > 0:11:38- 12 weeks, do you think? - Yeah, something like that.
0:11:38 > 0:11:40About 12 weeks from start to finish, hopefully.
0:11:40 > 0:11:43Are you going to be gung ho? You start and you absolutely crack on?
0:11:43 > 0:11:45- Yeah.- Yeah?- Definitely.
0:11:45 > 0:11:48Once we're into it, we'll just crash it out
0:11:48 > 0:11:51and hopefully shouldn't find any problems on the way.
0:11:51 > 0:11:53It's all fairly open so you can see what's here.
0:11:53 > 0:11:55There's not going to be anything hidden, hopefully,
0:11:55 > 0:11:57that we're going to get tripped up by.
0:11:57 > 0:12:01And what about the bit of damp that I can spy in the corner over there?
0:12:01 > 0:12:03- Is that something to worry about? - No, not at all.
0:12:03 > 0:12:07We use tanking, we can tank all the walls and the floor.
0:12:07 > 0:12:10We've done it before in other jobs, so it should be fine.
0:12:10 > 0:12:13What are you most looking forward to with this?
0:12:13 > 0:12:15Seeing it finished!
0:12:15 > 0:12:18- And what are you most worried about? - I'm not worried at all.
0:12:18 > 0:12:20Greg doesn't worry.
0:12:20 > 0:12:22I lie awake worrying at night, he doesn't.
0:12:22 > 0:12:24So what are you worried about with this?
0:12:24 > 0:12:26It's just the start of the project.
0:12:26 > 0:12:28It always gets me down.
0:12:28 > 0:12:29Nothing looks like it's happening,
0:12:29 > 0:12:32then it all seems to come together quite quickly.
0:12:32 > 0:12:35I sort of get a bit stressed in the early stages.
0:12:35 > 0:12:37- And you just come in and actually do it?- Yeah.
0:12:37 > 0:12:41Comes in, gets on with it, goes home.
0:12:41 > 0:12:43I'm so excited to see how this turns out,
0:12:43 > 0:12:47and how you've actually designed it and brought it back to life again.
0:12:47 > 0:12:49Congratulations and good luck.
0:12:49 > 0:12:51- Lovely to meet you.- Lovely, thank you.- Thanks.- Thank you.
0:12:51 > 0:12:55Well, Phil and Greg have got years of experience behind them.
0:12:55 > 0:12:57I think they're a fantastic combo.
0:12:57 > 0:13:00They buy, they sell and they put up buildings.
0:13:00 > 0:13:03But they did take a risk purchasing this particular property
0:13:03 > 0:13:06because there is no guarantee they'll get the planning permission
0:13:06 > 0:13:10they need to convert this into a two-bedroom house.
0:13:10 > 0:13:13We'll find out if they do get what they want,
0:13:13 > 0:13:16and if those brothers get on or fall out,
0:13:16 > 0:13:18later on in the programme.
0:13:26 > 0:13:30Retford is a market town in north Nottinghamshire.
0:13:30 > 0:13:32It has played some key roles in history,
0:13:32 > 0:13:35having received its charter in 1246.
0:13:36 > 0:13:40The market area has a cannon taken from the Crimean War,
0:13:40 > 0:13:43and several of the nearby villages were the origin of many
0:13:43 > 0:13:47of the first pilgrims on the Mayflower, bound for America.
0:13:50 > 0:13:54# On the boats and on the planes
0:13:54 > 0:13:57# We're coming to America! #
0:13:57 > 0:13:59It's nice walking down a quaint little street
0:13:59 > 0:14:01in a quaint little town.
0:14:01 > 0:14:03It feels a little bit like Middle England.
0:14:03 > 0:14:06And that's because we are in Middle England.
0:14:06 > 0:14:08The property I'm here to see is this.
0:14:08 > 0:14:13It's a two-bed mid-terrace house with a guide price of £48,000.
0:14:13 > 0:14:17What do you get for that money? I'm going to find out.
0:14:21 > 0:14:24So we're straight into the lounge, front room.
0:14:24 > 0:14:26And it's a decent-sized room.
0:14:26 > 0:14:30The decor is a little bit dated.
0:14:30 > 0:14:32That, you would have to change.
0:14:32 > 0:14:35That would be dangerous if you've got children around.
0:14:35 > 0:14:37But it's not a bad start. Central heating, which is good.
0:14:37 > 0:14:39And a gas fire.
0:14:39 > 0:14:42But I'm liking what I've seen so far.
0:14:44 > 0:14:48OK, in here we've got stairs down to the cellar,
0:14:48 > 0:14:52and into the kitchen, which is a good size again.
0:14:52 > 0:14:54All this is dated, though.
0:14:54 > 0:14:56You would need to put a whole new kitchen in here.
0:14:56 > 0:15:00We've got a bathroom at the end, just there.
0:15:00 > 0:15:02That would have been added on at a later stage.
0:15:02 > 0:15:05There's a bit of a gap between bathroom and kitchen, which I
0:15:05 > 0:15:08like, which gives you the door out to the back garden.
0:15:08 > 0:15:11But there is a lot of space here which you could actually
0:15:11 > 0:15:14turn around and give yourself a nice kitchen.
0:15:14 > 0:15:17You'd need to put a new bathroom in as well.
0:15:17 > 0:15:19But it's good. I'm happy.
0:15:21 > 0:15:25I'm always happy with a good two-up, two-down solidly built house
0:15:25 > 0:15:29but some people do like to alter the traditional layout,
0:15:29 > 0:15:32putting the kitchen in the extension at the back, where the
0:15:32 > 0:15:35bathroom currently is, but that depends on whether there is
0:15:35 > 0:15:39still space elsewhere to put the loo.
0:15:40 > 0:15:43OK, upstairs, we've got two bedrooms.
0:15:43 > 0:15:45Let's go to the front of the house first and you've got
0:15:45 > 0:15:49a decent-size bedroom at the front. Good-size bedroom.
0:15:49 > 0:15:51Let's check out the other one.
0:15:51 > 0:15:57OK, over to the second bedroom and, again, it's of a decent size.
0:15:57 > 0:16:01You've got some fitted wardrobes here, which are dated.
0:16:01 > 0:16:03More polystyrene tiles here,
0:16:03 > 0:16:05which you would definitely need to get rid of.
0:16:05 > 0:16:09And unfortunately, I knew it was too good to be true,
0:16:09 > 0:16:11we have a problem here.
0:16:11 > 0:16:14I'm not sure what's causing that, but it doesn't look good and you
0:16:14 > 0:16:17would need to get to the bottom of that, most definitely.
0:16:17 > 0:16:20Apart from that, I thought I was going to be hitch free but
0:16:20 > 0:16:23I'm not, but I still like it.
0:16:25 > 0:16:29You need to take the polystyrene tiles off ASAP,
0:16:29 > 0:16:32not just to find out where this leak is coming from or because
0:16:32 > 0:16:36they're not exactly pretty, but because they can potentially
0:16:36 > 0:16:38cause issues if there's a fire.
0:16:38 > 0:16:42They're the type of tile that can spread fire,
0:16:42 > 0:16:45release toxic fumes and drip blobs of molten plastic.
0:16:45 > 0:16:49The more modern versions are treated with retardant
0:16:49 > 0:16:51but why take the risk?
0:16:53 > 0:16:58Another burning issue was to see if you can move the loo up here.
0:16:58 > 0:17:03It could be done but I think you'd lose too much space in the bedroom.
0:17:04 > 0:17:08Time to find out what a local estate agent thinks of this property,
0:17:08 > 0:17:10guided at £48,000.
0:17:11 > 0:17:14It's a very traditional style of property.
0:17:14 > 0:17:16The overall condition of the property is very good.
0:17:16 > 0:17:19It does want some cosmetic updating throughout
0:17:19 > 0:17:22and the rear bedroom maybe wants some attention to the roof.
0:17:22 > 0:17:25In my opinion, the property would take around £10,000 to bring it
0:17:25 > 0:17:28into a condition of a rentable or saleable standard.
0:17:29 > 0:17:33Speaking of sales and rent, what kind of numbers are we looking at?
0:17:33 > 0:17:35First the sales market.
0:17:38 > 0:17:41Once works are completed on the property, I envisage the sale price
0:17:41 > 0:17:44would be between £80,000 and £85,000.
0:17:46 > 0:17:49Pretty healthy numbers there. What about rentals?
0:17:49 > 0:17:53Once works have been completed, I envisage the property would
0:17:53 > 0:17:56rent for around £450 per calendar month.
0:17:57 > 0:18:00This house is a little dated but it has been looked after.
0:18:00 > 0:18:02It would need modernising
0:18:02 > 0:18:04and you would need to get that ceiling checked out.
0:18:04 > 0:18:07All in all, it's a solid little house and if you got it for
0:18:07 > 0:18:10anywhere near that guide price, you've got yourself a little gem.
0:18:10 > 0:18:13Let's see who wanted it when it went under the hammer.
0:18:13 > 0:18:1548,000 to start me.
0:18:15 > 0:18:2048, thank you. £48,000 I've got. 49, someone else?
0:18:20 > 0:18:2248,000 the opening bid.
0:18:22 > 0:18:2749. At 49. At 50. 50,000.
0:18:27 > 0:18:3251. 52. At 52, 53.
0:18:32 > 0:18:3554. 500?
0:18:35 > 0:18:37£54,000.
0:18:37 > 0:18:4355 somewhere else? At £54,000, it's going to go, ladies and gentlemen.
0:18:43 > 0:18:46At 54,000 once, twice, third time.
0:18:46 > 0:18:48GAVEL FALLS
0:18:48 > 0:18:50Sold at £54,000. Thank you.
0:18:54 > 0:18:59With a successful bid of £54,000, James secured the property.
0:19:01 > 0:19:04He does have some rental properties around Bristol, and I was keen
0:19:04 > 0:19:07to find out why he's reached out to Retford.
0:19:07 > 0:19:10# Oh-oh-oh, James. #
0:19:10 > 0:19:13- James, nice to meet you.- Good to meet you too.- Congratulations, pal. - Thank you.
0:19:13 > 0:19:16Tell us about this house that made you go to the auction and say,
0:19:16 > 0:19:19- "I'll have it".- Well, it's in an area I'm quite familiar with.
0:19:19 > 0:19:21It's a nice area.
0:19:21 > 0:19:23I was living ten miles away
0:19:23 > 0:19:26so I sort of know the place quite well.
0:19:26 > 0:19:29It was a good price so I thought it was a nice sturdy house,
0:19:29 > 0:19:31no obvious problems so I thought I'd give it a go.
0:19:31 > 0:19:35- You did get it for a good price didn't you? You're happy with that, aren't you?- Very happy.
0:19:35 > 0:19:38I was expecting to pay a little bit more, maybe up to around 60,000,
0:19:38 > 0:19:41but there was only one other person bidding so, yeah, I was very pleased.
0:19:41 > 0:19:43How did the bidding go, then, with the other person?
0:19:43 > 0:19:46- Well, the auction was a bit hectic...- OK.- ..cos I arrived late.
0:19:46 > 0:19:50I hadn't got confirmation of the finance yet.
0:19:50 > 0:19:53I didn't get an e-mail through until around lot four or five.
0:19:53 > 0:19:57This was lot nine, so it was all a bit of a rush. Then I had to register to bid
0:19:57 > 0:20:01so I wasn't even in the auction room until about lot seven.
0:20:01 > 0:20:04- So explain that to me. You actually went to the auction...- Yeah,
0:20:04 > 0:20:07I hadn't even got confirmation that I could borrow the money
0:20:07 > 0:20:10until around lot four, five, then the e-mail came through,
0:20:10 > 0:20:12so that gave me the go-ahead to bid.
0:20:12 > 0:20:15No nerves there kicking in, thinking, "I need this e-mail"?
0:20:15 > 0:20:19- I thought I might be driving to Nottingham for no reason.- Nearly.
0:20:19 > 0:20:23- You were only four or five lots away.- Yeah, exactly. Yeah, I got away with it.
0:20:25 > 0:20:27Talk about cutting it fine.
0:20:27 > 0:20:31James has used a bridging loan to secure this property, which is
0:20:31 > 0:20:34a loan that some purchasers use if they are planning to flip the house
0:20:34 > 0:20:38quickly or to get a finance on a house that may not qualify for
0:20:38 > 0:20:39a traditional mortgage.
0:20:40 > 0:20:42But beware,
0:20:42 > 0:20:45these loans carry monthly rather than annual interest fees
0:20:45 > 0:20:49and can incur hefty charges for entry and exit from the deal.
0:20:51 > 0:20:54# Play at your own risk, girl
0:20:54 > 0:20:58- # Play at your own risk - I'm tellin' you #
0:20:58 > 0:20:59What are you going to do with it?
0:20:59 > 0:21:02Plan A is to rent out so I'm going to keep things straightforward.
0:21:02 > 0:21:04Replace the kitchen and bathroom.
0:21:04 > 0:21:06- Yeah.- Sort out the ceilings upstairs.
0:21:06 > 0:21:09I was tempted to think about moving this chimney breast to make
0:21:09 > 0:21:11- more...- More floor space. - Yes, absolutely.
0:21:11 > 0:21:14Yeah, the roof space is the biggest concern but there is
0:21:14 > 0:21:17a new roof on so some work's been done.
0:21:17 > 0:21:21And also in the basement downstairs you can see joists and floorboards have been replaced.
0:21:21 > 0:21:25So whoever lived here before, they've upgraded but not modernised.
0:21:25 > 0:21:29Yeah. I've popped down into the cellar. It's not built for me.
0:21:29 > 0:21:34No, it's... If you're 5'7" or below, you'll get away with it.
0:21:34 > 0:21:36- But it's good storage space. - It's good useful space.
0:21:36 > 0:21:40- It's clean, it's dry. Yeah, it's got potential.- What will you do with that?
0:21:40 > 0:21:43Just whitewash the walls and maybe put a bit of nice flooring down
0:21:43 > 0:21:46but then leave it for any potential tenant to decide on.
0:21:46 > 0:21:49You mentioned the kitchen. You're doing the kitchen, brand-new kitchen?
0:21:49 > 0:21:52Yeah, that's in here so it will be a kitchen-diner area.
0:21:52 > 0:21:54- I was on about the chimney breast. - Yes.
0:21:54 > 0:21:57That would give a nice row of units but I don't know if the numbers
0:21:57 > 0:22:00will stack up for that. So I'll see what the spreadsheet says.
0:22:00 > 0:22:03I think just leaving the layout as it is will suffice.
0:22:03 > 0:22:05Tell us about upstairs, what are you going to do?
0:22:05 > 0:22:07The ceilings seem to be collapsing.
0:22:07 > 0:22:12The joists are falling away from the support. It's not just the weight of the plasterboard.
0:22:12 > 0:22:15That all needs ripping down and having a good look at that.
0:22:15 > 0:22:19There might be more problems ahead but it definitely needs a new ceiling.
0:22:19 > 0:22:22That's one of the things, James, you never know what you're going
0:22:22 > 0:22:26- to find when you start taking things away...- That's true. I didn't even look in the ceiling.
0:22:26 > 0:22:30- I came round to view this place twice but I didn't put my head in there.- Oh, no.
0:22:30 > 0:22:31I didn't have a ladder.
0:22:31 > 0:22:34But I could see there was a new roof so I wasn't massively concerned.
0:22:34 > 0:22:37But, yes, that's right, you never know what you're going to get.
0:22:37 > 0:22:40There will be loads more that I'll find as well. When I start moving fireplaces
0:22:40 > 0:22:43- the lintel will probably collapse or something.- No, don't say that!
0:22:43 > 0:22:45- You never know.- Don't say that.
0:22:45 > 0:22:48Well, a contingency for the unexpected is a must in any project.
0:22:48 > 0:22:51So what does James have in the kitty for the work?
0:22:53 > 0:22:55The budget is going to be about 10K but that will include all my
0:22:55 > 0:22:58finance costs, legal fees, everything, I would think,
0:22:58 > 0:23:02give or take 5K, just to cover my back a little bit.
0:23:02 > 0:23:05Yeah, around the 10,000 mark.
0:23:05 > 0:23:08- That's not too bad. That's not too bad at all, is it? - Is that realistic?
0:23:08 > 0:23:10Yeah, very realistic, I have to say.
0:23:10 > 0:23:14A realistic budget but there is real pressure on his timescale.
0:23:14 > 0:23:20James has to get the property valued after five months to meet the conditions of his bridging loan.
0:23:20 > 0:23:23So all the work needs to be done by then.
0:23:23 > 0:23:27Plus, in that time, he's got to finish work on another property
0:23:27 > 0:23:31and he will be doing all the work on this one himself.
0:23:31 > 0:23:34This all meant he had to cancel a holiday.
0:23:34 > 0:23:37And James takes some very adventurous holidays.
0:23:40 > 0:23:43I like the outdoors and I like mountaineering and hillwalking
0:23:43 > 0:23:45and such. I've got my motorbike as well. I've done
0:23:45 > 0:23:48- a bit of travel in the past. - You're playing it down slightly.
0:23:48 > 0:23:49I've done a bit of research on you.
0:23:49 > 0:23:52You've done some long trips on your bike, haven't you?
0:23:52 > 0:23:56I did go to Cape Town a few years ago now, which was 17,500 miles
0:23:56 > 0:23:57through 27 countries.
0:23:57 > 0:24:02And there's plans possibly to maybe do a Mongolia trip next year
0:24:02 > 0:24:04but nobody knows about that yet.
0:24:04 > 0:24:06Who was with you? Did you do it with a friend or...
0:24:06 > 0:24:08Well, the Africa trip,
0:24:08 > 0:24:10I just went on my own and met people on the way
0:24:10 > 0:24:13but I'm planning on going across Central Asia
0:24:13 > 0:24:15- with a friend.- That's incredible.
0:24:15 > 0:24:18I've come across loads of pastimes and hobbies, but 27 countries
0:24:18 > 0:24:21- on your bike? - Yeah, in about six months.
0:24:21 > 0:24:23So I had to crack on with that. Yeah, it was good.
0:24:23 > 0:24:25What an achievement though. Good man.
0:24:25 > 0:24:26Yeah, and people are nice everywhere.
0:24:26 > 0:24:30- That's what the lesson is. It's nice.- Good luck, James. - Thank you very much.
0:24:30 > 0:24:33- Wish you all the best. - Yeah. Thank you.
0:24:33 > 0:24:36This should be a pretty straightforward refurb for James.
0:24:36 > 0:24:39There doesn't seem to be that much work needed doing.
0:24:39 > 0:24:42Now, there is the issue of that ceiling upstairs and you never
0:24:42 > 0:24:45know what you're going to find when you have a look at that
0:24:45 > 0:24:46just that little bit closer.
0:24:46 > 0:24:50And he's got the pressure of that bridging loan timescale but
0:24:50 > 0:24:53he seems to be the kind of person that thrives on pressure.
0:24:53 > 0:24:56Will he get it right? Will it be an easy ride?
0:24:56 > 0:24:59You can find out how he gets on later in the programme.
0:24:59 > 0:25:04Coming up, guess the guide price of this two-bed terrace in Erith, Kent?
0:25:04 > 0:25:06Answers? Now, don't make any phone calls.
0:25:06 > 0:25:09No texting, all that kind of stuff.
0:25:11 > 0:25:14And in this two-bed mid-terrace in Retford,
0:25:14 > 0:25:17James had a little help from a canine companion.
0:25:17 > 0:25:19YAPPING
0:25:22 > 0:25:26Back we go now to Seaford in East Sussex, where Lucy saw this
0:25:26 > 0:25:30former St John's Ambulance building bought at auction by brothers
0:25:30 > 0:25:34Phil and Greg for £137,500.
0:25:34 > 0:25:38There was plenty of square footage to play with, and the brothers
0:25:38 > 0:25:43had a bit of a topsy-turvy idea to utilise it.
0:25:43 > 0:25:44So, it will be an upside-down house?
0:25:44 > 0:25:46It'll be upside down, which is slightly unusual.
0:25:46 > 0:25:48I'm not worried about it, but it's not ideal.
0:25:48 > 0:25:50But I think it's probably ideal for this building.
0:25:50 > 0:25:52I think it will work like that because,
0:25:52 > 0:25:55to have all the lovely vaulted ceilings and all the living space
0:25:55 > 0:25:58upstairs, is how you'd prefer to live, I think.
0:25:58 > 0:26:01Yeah, I think so. You want to make the best of the rooms you've got
0:26:01 > 0:26:05and they definitely work better that way round, I think.
0:26:05 > 0:26:09An ambitious plan that Phil and Greg thought they could pull off
0:26:09 > 0:26:13in just 12 weeks on a budget of £30,000.
0:26:13 > 0:26:17But to turn this utilitarian space into a desirable dwelling,
0:26:17 > 0:26:20the boys would need plenty of vision.
0:26:20 > 0:26:22The early signs were that sibling rivalry could mean they
0:26:22 > 0:26:24wouldn't get any work done at all.
0:26:24 > 0:26:27- We argue.- Brothers!
0:26:27 > 0:26:30Yeah, but we seem to forget about it the following day, don't we?
0:26:30 > 0:26:33Yeah, we have a big row on the one day and then we're sort of
0:26:33 > 0:26:37having a beer in the pub the next day so it's short-lived.
0:26:37 > 0:26:40- No! You really do argue? - Oh, yes!
0:26:40 > 0:26:43So, we're back, one year and four months later, to find out
0:26:43 > 0:26:48if the bickering has been the cause of their overrunning schedule,
0:26:48 > 0:26:51and to discover how you turn this kind of space...
0:26:53 > 0:26:55..into this kind of space.
0:26:55 > 0:26:58Of course, is relatively straightforward if you're like Greg.
0:26:58 > 0:27:01He stripped everything out, re-insulated,
0:27:01 > 0:27:04damp-proofed, woodworm-treated, dry-lined,
0:27:04 > 0:27:08a new inside skin, re-insulated, re-plastered, rewired,
0:27:08 > 0:27:12re-plumbed, got the old radiators refurbished...
0:27:12 > 0:27:13I'll just pause here for Paloma.
0:27:13 > 0:27:16- # I tell you what - I tell you what
0:27:16 > 0:27:19- # What I have found - What I have found
0:27:19 > 0:27:21# That I'm no fool
0:27:21 > 0:27:25- # I'm just upside down - I'm just upside down... #
0:27:25 > 0:27:28Thank you! Now, where was I?
0:27:28 > 0:27:32Fitted new windows, flooring, tiled the new bathrooms.
0:27:32 > 0:27:36Plumbing and electrics were done by specialists.
0:27:38 > 0:27:41Then a new staircase for the bedrooms up to the living room.
0:27:41 > 0:27:44# You start to see the world a little differently
0:27:44 > 0:27:47# When you turn it upside down. #
0:27:47 > 0:27:51He did get a company in to treat the woodwork, but the net result,
0:27:51 > 0:27:55to turn this uninspiring place into this...
0:27:57 > 0:28:00- # I tell you what - I tell you what
0:28:00 > 0:28:02- # What I have found - What I have found
0:28:02 > 0:28:05# That I'm no fool
0:28:05 > 0:28:08# I'm just upside down
0:28:08 > 0:28:10- # Ain't got no cares - Ain't got no cares
0:28:10 > 0:28:13- # I ain't got no rules - Ain't got no rules
0:28:13 > 0:28:15# I think I like...
0:28:15 > 0:28:20- # Living upside down - Living upside down... #
0:28:20 > 0:28:24The brothers' choices of all the fixtures and fittings,
0:28:24 > 0:28:26whether it be tiles, bathroom furniture,
0:28:26 > 0:28:29kitchen units, etc, are all of very high spec,
0:28:29 > 0:28:33but was the working relationship as harmonious
0:28:33 > 0:28:35as the end result would suggest?
0:28:38 > 0:28:41Working together with Greg has been OK.
0:28:41 > 0:28:43We've done many projects together now.
0:28:43 > 0:28:46We've had our ups and downs, but, generally,
0:28:46 > 0:28:47at the end of the day,
0:28:47 > 0:28:50we have a bit of a row about something or other, but we end up
0:28:50 > 0:28:53down the pub afterwards having a beer and sort it out there.
0:28:53 > 0:28:56We argue quite a bit, but maybe that's for the better because
0:28:56 > 0:28:59the jobs do come out good in the end. They always do.
0:28:59 > 0:29:00Well, there's no disputing that,
0:29:00 > 0:29:03but if bickering didn't cause the delays, then what did?
0:29:03 > 0:29:06When we bought the property at the auction there was no planning on it.
0:29:06 > 0:29:10It was a commercial property and we had to change it to residential.
0:29:10 > 0:29:13Fairly straightforward. It took about two to three months
0:29:13 > 0:29:17for that process, and we had a couple of local objections,
0:29:17 > 0:29:20but nothing other than that and it went through fairly smoothly.
0:29:20 > 0:29:24The build has probably taken about four months, all in all,
0:29:24 > 0:29:26but we've really been using it as a...
0:29:26 > 0:29:30We've got a lot of other projects going at the same time,
0:29:30 > 0:29:33but, generally, it's taken about four months' work.
0:29:33 > 0:29:37And, presumably, more than the £30,000 budget?
0:29:37 > 0:29:41We have gone over that by about 10,000, so round about 40,000.
0:29:41 > 0:29:43We've not quite got every bill in,
0:29:43 > 0:29:45but it's going to be there or thereabouts.
0:29:45 > 0:29:51That's basically on better fittings, higher-spec finishes.
0:29:51 > 0:29:53Initially, we were just going to rent the property out
0:29:53 > 0:29:55so we were going to do a fairly basic finish on it.
0:29:55 > 0:29:59We decided early on in the build to sell the property
0:29:59 > 0:30:02so we've up-rated the specification.
0:30:02 > 0:30:05Hopefully, they will add to the saleability of the property.
0:30:07 > 0:30:09Well, we have a way of finding out.
0:30:09 > 0:30:12We invited two estate agents along to give their impressions and
0:30:12 > 0:30:16valuations to the finished two-bed upside-down cottage.
0:30:16 > 0:30:21First, the agent who saw it when it was an ambulance headquarters.
0:30:21 > 0:30:24I've had a look about around the property and...wow!
0:30:24 > 0:30:27The changes are immense from what it was when we first came round.
0:30:27 > 0:30:29They've done a cracking job.
0:30:29 > 0:30:33The standard of finish seems to have been to a very high standard.
0:30:33 > 0:30:37Good, spacious accommodation and a really nice finish.
0:30:37 > 0:30:41Philip and Greg have decided to sell so what could it fetch on the
0:30:41 > 0:30:43open market?
0:30:43 > 0:30:47So far, they've spent 137,500 on purchase
0:30:47 > 0:30:52and 40,000 on refurbishment, taking their total to 177,500.
0:30:55 > 0:30:59I think this property on the current market would be looking to get
0:30:59 > 0:31:03offers in the region of £300,000 to £325,000.
0:31:03 > 0:31:08The selling value of the property would be round £300,000 to £325,000.
0:31:08 > 0:31:10Taking that top figure,
0:31:10 > 0:31:16that's a huge 147,500 potential profit before tax and expenses.
0:31:16 > 0:31:18How do you feel about that, guys?
0:31:20 > 0:31:21Pretty much what we had in mind.
0:31:21 > 0:31:25We've got it on the market at the moment for 325.
0:31:25 > 0:31:28It's been on for a week so we've not had any offers yet, but it's,
0:31:28 > 0:31:30hopefully, what we're looking for.
0:31:30 > 0:31:35No surprises there, then, but then again, Philip is an estate agent.
0:31:35 > 0:31:37How about the grafter, Greg?
0:31:37 > 0:31:39Yeah, that's what we're expecting.
0:31:39 > 0:31:42Well, what we're hoping for, so that's good news, yeah.
0:31:42 > 0:31:45Glad we've got an agreement about that.
0:31:45 > 0:31:47What about future projects, though?
0:31:47 > 0:31:50We got nothing else directly in the pipeline.
0:31:50 > 0:31:54We sort of keep an eye on the auctions and properties that
0:31:54 > 0:31:57come on to the market locally and if the right thing comes up,
0:31:57 > 0:32:01then we'll definitely be looking to do something else.
0:32:01 > 0:32:03Yeah.
0:32:03 > 0:32:06Well, brief but to the point, Greg. Thank you.
0:32:11 > 0:32:15I'm in Erith, a district of the London Borough of Bexley
0:32:15 > 0:32:17in south-east London.
0:32:17 > 0:32:20Once the site of a Saxon village and bordering the Thames,
0:32:20 > 0:32:25its name means "old haven", and if the settlement originally developed
0:32:25 > 0:32:28because of the location of the river, in recent times it
0:32:28 > 0:32:33has lacked the all-important rail connection into central London.
0:32:33 > 0:32:36This has kept property prices relatively low compared to
0:32:36 > 0:32:38other parts of outer London.
0:32:38 > 0:32:42But with the advent of Crossrail, things are likely to change.
0:32:42 > 0:32:48# ..Are gonna come my way... #
0:32:50 > 0:32:54Well, the property I'm here to see is clearly very close to some
0:32:54 > 0:32:56really good transport links,
0:32:56 > 0:33:00possibly even a bit too close for some people's comfort.
0:33:00 > 0:33:02But one bit of transport that everyone is really excited
0:33:02 > 0:33:05about is the Crossrail link.
0:33:05 > 0:33:07It's coming really close, which means house prices in
0:33:07 > 0:33:12this area can only go in one direction. Two-bedroom mid-terrace.
0:33:12 > 0:33:13Let's have a look.
0:33:13 > 0:33:16The front area might give the house a bit of a rubbish start,
0:33:16 > 0:33:19but let's see if someone can clean up here.
0:33:19 > 0:33:23So, how much do you reckon that you have to pay for a simple little
0:33:23 > 0:33:28to-up, two-down terrace with a bit at the back around these parts?
0:33:28 > 0:33:30Well, up in the north, some of the northern towns,
0:33:30 > 0:33:32I reckon you'd be looking at 20, 30, 40,000 quid.
0:33:32 > 0:33:34So, let's have a bit of a quiz.
0:33:34 > 0:33:37What you reckon the guide price for this place was at the auction?
0:33:37 > 0:33:40Was it A, 80,000 quid?
0:33:40 > 0:33:43B, 100,000 quid?
0:33:43 > 0:33:45C, 150,000 quid?
0:33:45 > 0:33:48Or, D, 140,000 quid plus?
0:33:48 > 0:33:49Answers?
0:33:49 > 0:33:53Now, don't make any phone calls, no texting, all that kind of stuff.
0:33:53 > 0:33:55Just for fun. But it was that one!
0:33:55 > 0:33:59£140,000 plus. It's interesting, isn't it?
0:33:59 > 0:34:02Twice or even three times what it would cost if you were up north,
0:34:02 > 0:34:06but that's just the northern boy in me being incredulous.
0:34:06 > 0:34:09What you have got is a pretty standard two-up, two-down terrace
0:34:09 > 0:34:11with a bit at the back, as I said.
0:34:11 > 0:34:13Front room there, back room here,
0:34:13 > 0:34:16stairs in the middle, and then through to that bit at the back
0:34:16 > 0:34:19that has been added on at some stage in the past.
0:34:19 > 0:34:23It's currently a kitchen. Well, a sort of kitchen.
0:34:23 > 0:34:26It just needs a lot of work. What else is there?
0:34:26 > 0:34:28Go, go! Go!
0:34:28 > 0:34:31Right, so, past the kitchen... Keep going!
0:34:31 > 0:34:33Through the kitchen, you come to...
0:34:33 > 0:34:36A bit further. Stop, stop, stop!
0:34:36 > 0:34:39You come to the bathroom. Yeah, a downstairs bathroom.
0:34:39 > 0:34:43But I'm guessing probably fairly standard in this area.
0:34:43 > 0:34:46The whole house, from what I've seen so far, is going to need
0:34:46 > 0:34:49a fair amount of work to get it straightened up, and I don't know
0:34:49 > 0:34:54whether it's just me, but this place feels rather narrow and long.
0:34:54 > 0:34:59# I made it through the tunnel
0:34:59 > 0:35:02# I came out the other side. #
0:35:02 > 0:35:05We're at the back of the property.
0:35:05 > 0:35:09You get an idea, yes, there is a bit of renovation required,
0:35:09 > 0:35:12although, generally, it's not in too bad a condition.
0:35:12 > 0:35:15It probably looks worse than it is. Not a massive back garden,
0:35:15 > 0:35:17as you might have expected. Just a little bit of space.
0:35:17 > 0:35:20You are going to have to spend a bit of money on fence panels
0:35:20 > 0:35:23and tidying this up. But it is a bit of a bonus.
0:35:23 > 0:35:25The fact it's small, if you're going to rent this place out,
0:35:25 > 0:35:28that is actually a good thing. So, maybe not surprisingly,
0:35:28 > 0:35:32the garden is narrow and long, too, but it does offer, at least,
0:35:32 > 0:35:34some outside space. Certainly room for a washing line,
0:35:34 > 0:35:37a patio area and, potentially, subject to planning,
0:35:37 > 0:35:40you could get a bigger and better extension up,
0:35:40 > 0:35:44which would then allow the kitchen to be expanded, and the bathroom
0:35:44 > 0:35:46could be moved to the first floor.
0:35:47 > 0:35:50So, upstairs, two reasonably-sized bedrooms -
0:35:50 > 0:35:53one at the back, one at the front. They have both got these large
0:35:53 > 0:35:57chimney breasts in them. Now, clearly, that is taking up
0:35:57 > 0:35:59quite a lot of space. Whether or not it is worth
0:35:59 > 0:36:02going to the time and trouble and expense
0:36:02 > 0:36:06of getting rid of them depends really if you're planning to live
0:36:06 > 0:36:08in the house long term or just rent it out.
0:36:08 > 0:36:10If you're renting it, then probably not.
0:36:10 > 0:36:12If you're living here, space could be at a premium.
0:36:12 > 0:36:16One improvement definitely high on the agenda, though,
0:36:16 > 0:36:19is upgrading the double glazing. You want triple glazing in here,
0:36:19 > 0:36:22to try and cut down on that road noise.
0:36:22 > 0:36:24Sounds like the road noise isn't great,
0:36:24 > 0:36:28but modern insulation on the windows would do wonders.
0:36:28 > 0:36:30# Stop the noise, stop the noise
0:36:31 > 0:36:34# I wish that I could stop the noise... #
0:36:34 > 0:36:36And, perhaps, when fully refurbished,
0:36:36 > 0:36:38this could be a big noise
0:36:38 > 0:36:42on the rental market. But what does a local estate agent think?
0:36:44 > 0:36:46My first impressions are that,
0:36:46 > 0:36:48although the property needs a fair bit of work,
0:36:48 > 0:36:50once the property is fully renovated,
0:36:50 > 0:36:52there would definitely be good demand for rental and resale,
0:36:52 > 0:36:54especially in the coming years.
0:36:54 > 0:36:56I would recommend that you hang on
0:36:56 > 0:36:58to this property and rent it out, until the Crossrail is definitely
0:36:58 > 0:36:59up and running.
0:36:59 > 0:37:03Yes, one suspects this is better as a long-term investment,
0:37:03 > 0:37:07but could there be any immediate growth in a property that was guided
0:37:07 > 0:37:10at £140,000 plus?
0:37:10 > 0:37:13Once this property has been renovated, I would anticipate
0:37:13 > 0:37:16a resale value of £235,000.
0:37:16 > 0:37:20And what about the more likely investment route - rental?
0:37:20 > 0:37:22How would it fare on that market?
0:37:22 > 0:37:26If it was going to be rented, I would look at a rental in the region
0:37:26 > 0:37:29of £1,000 to, maybe, £1,100 a month.
0:37:32 > 0:37:35Well, there's a bit of work to be done to sort this place out,
0:37:35 > 0:37:38but I definitely think it has potential for price growth.
0:37:38 > 0:37:42And that's what we're all after. So, who bought it? Let's find out,
0:37:42 > 0:37:43when it went under the hammer.
0:37:47 > 0:37:50Lot 57 has been withdrawn, prior to auction.
0:37:50 > 0:37:53We'll move on to Lot 58. Two-bed mid-terraced house.
0:37:53 > 0:37:55150,000?
0:37:55 > 0:37:57Who'd like to kick off?
0:37:57 > 0:38:00150 with you. 155 elsewhere?
0:38:00 > 0:38:02With you, 155.
0:38:02 > 0:38:04160, yes?
0:38:04 > 0:38:06160. 165.
0:38:06 > 0:38:08165. 170.
0:38:10 > 0:38:12170. 175.
0:38:12 > 0:38:14175 elsewhere?
0:38:16 > 0:38:20Blimey. Can't believe it. It's going at £170,000. 172.
0:38:20 > 0:38:23172, right at the back.
0:38:23 > 0:38:24174.
0:38:24 > 0:38:26176.
0:38:26 > 0:38:28178?
0:38:28 > 0:38:31176, right at the back.
0:38:31 > 0:38:33First time.
0:38:33 > 0:38:35Second time.
0:38:35 > 0:38:37Third and last time. If you're all done...
0:38:37 > 0:38:40Sold. 176, at the back.
0:38:46 > 0:38:49So, for 176,000, the two-bed Erith house
0:38:49 > 0:38:52was bought by local man Harbinder.
0:38:53 > 0:38:57Harbinder has been a property developer for a number of years
0:38:57 > 0:38:59and he knows the area well.
0:38:59 > 0:39:02He joined me and his builder Robert back at the house.
0:39:02 > 0:39:05Harbinder, Robert, great to meet you both.
0:39:05 > 0:39:08- Hi.- Congratulations. Tell me why you wanted to buy this place.
0:39:08 > 0:39:11It is basically to add to the portfolio for rentals,
0:39:11 > 0:39:14so we are looking at, basically, putting it back on the market
0:39:14 > 0:39:17and bringing it back to life. It has seen better days.
0:39:17 > 0:39:20It certainly has. Why did you choose this particular property?
0:39:20 > 0:39:23It's location to the town centre and the train station.
0:39:23 > 0:39:27- We have Crossrail coming to Abbey Wood...- Yeah, yeah.- ..very soon.
0:39:27 > 0:39:30So, over time, I think it will prove to be a good buy.
0:39:30 > 0:39:33Let's talk about the Crossrail effect, if you like.
0:39:33 > 0:39:37How noticeable has that been to this side of London?
0:39:37 > 0:39:39Erm, very noticeable,
0:39:39 > 0:39:43especially the Abbey Wood, the Belvedere and Erith market.
0:39:43 > 0:39:46I think you will find it is very difficult to buy properties
0:39:46 > 0:39:49at this moment in time and the prices have gone up substantially
0:39:49 > 0:39:52- over a very short period. - Can you quantify it?
0:39:52 > 0:39:55I'd say, over the last 12 months, the average three-bedroom house
0:39:55 > 0:39:58- has gone up between £70,000 to £100,000...- Wow!
0:39:58 > 0:40:01..in the Crossrail vicinity, and as you come out to
0:40:01 > 0:40:04the neighbouring train stations, you will find that it's just
0:40:04 > 0:40:07a drip-down effect, but it has had a big increase.
0:40:07 > 0:40:10- Amazing, eh?- Mm.- And that is before it is even finished.- Correct.
0:40:10 > 0:40:14The skill of any property investment is to see areas of growth
0:40:14 > 0:40:17in both the location and the property, and Harbinder
0:40:17 > 0:40:20clearly knows his local market well.
0:40:20 > 0:40:24He has also identified that there is a shortage of rental properties
0:40:24 > 0:40:29in the location and sees this as an ideal house to rent out.
0:40:29 > 0:40:32So, let's talk about this place and what you're going to do
0:40:32 > 0:40:36- to improve it.- The property looks in a bad condition but, actually,
0:40:36 > 0:40:39it's not in bad condition. It's only...well, mainly decoration,
0:40:39 > 0:40:41new kitchen and bathroom.
0:40:41 > 0:40:44A medium-range bathroom and kitchen.
0:40:44 > 0:40:47What we are trying to do is, in the kitchen,
0:40:47 > 0:40:50- maximise the space, because it's a small kitchen.- Sure.
0:40:50 > 0:40:52- And a new boiler, heating. New heating, yeah.- OK.
0:40:52 > 0:40:55Obviously, the bathroom is downstairs at the back.
0:40:55 > 0:40:58- Is that staying where it is or...?- For now, it will do.
0:40:58 > 0:41:00You have to take everything in perspective,
0:41:00 > 0:41:03in terms of how much the house was bought for.
0:41:03 > 0:41:06If we were to spend money... It has potential.
0:41:06 > 0:41:09We can go out to the side and we can also take the bathroom upstairs.
0:41:09 > 0:41:13But as it stands at the moment, we are going to renovate the property
0:41:13 > 0:41:16for rental and it has the potential for the extensions, as and when.
0:41:16 > 0:41:20- Right. So, keeping the budget really quite tight?- Mm.
0:41:20 > 0:41:22Talking of that, what is the budget?
0:41:22 > 0:41:25I would say, approximately - we have been having this conversation -
0:41:25 > 0:41:28- £8,000 to £10,000.- OK.- We wouldn't want to go over ten grand.
0:41:28 > 0:41:29Small budget, yeah.
0:41:29 > 0:41:33Yeah, OK. And along with the £8,000 to £10,000 budget,
0:41:33 > 0:41:36they are hoping to complete the work in around three months.
0:41:36 > 0:41:41Though Harbinder can control what refurbishment work takes place here,
0:41:41 > 0:41:45there is certainly one thing he can't do very much about.
0:41:45 > 0:41:48The road at the front is very busy, very noisy.
0:41:48 > 0:41:51I mean, is that not a problem to people around here?
0:41:51 > 0:41:54Do they just accept that is the way it is and it is not going
0:41:54 > 0:41:57- to affect rentals? - No, I don't think so.
0:41:57 > 0:42:00I think you will find it is very difficult to get rental properties,
0:42:00 > 0:42:03because of demand and supply. That sort of negates
0:42:03 > 0:42:07the situation on the main road, because you're so close to
0:42:07 > 0:42:10the town centre, you can get there within walking distance
0:42:10 > 0:42:13and it's walking distance to the train station.
0:42:13 > 0:42:16These things take away from the main road.
0:42:16 > 0:42:19Good. What is next on the agenda for you two guys?
0:42:19 > 0:42:22We are looking at other opportunities.
0:42:22 > 0:42:26There's a lot of growth happening on this side of London.
0:42:26 > 0:42:29We're looking for properties that we can work with within our budget
0:42:29 > 0:42:33- and renovate them to sell or keep them, if we can.- Great.
0:42:33 > 0:42:35Sounds like a good strategy. Well, listen, congratulations
0:42:35 > 0:42:38- to both of you. Good luck with it. - Thank you.- Look forward to seeing
0:42:38 > 0:42:40how you get on.
0:42:40 > 0:42:43So, Harbinder and Robert doing exactly what is required
0:42:43 > 0:42:46to turn this place into an attractive little
0:42:46 > 0:42:49rental proposition. How will they get on?
0:42:49 > 0:42:51You can find it later in the show.
0:42:54 > 0:42:57So, we've seen what's happened to the first of today's properties.
0:42:57 > 0:42:59But what about the other two?
0:42:59 > 0:43:03- Time has passed and they're ready for us to go back.- Let's find out.
0:43:04 > 0:43:07Back now to Retford in Nottinghamshire
0:43:07 > 0:43:09where, earlier, I looked around this two-bed mid-terrace.
0:43:09 > 0:43:12Sold at auction for £54,000, it appeared to have
0:43:12 > 0:43:15a recently retiled roof
0:43:15 > 0:43:18and on the face of it, it looked quite a solid investment.
0:43:21 > 0:43:24All this is dated. You would need to put a whole new kitchen in here.
0:43:24 > 0:43:29You have got a bathroom at the end. That would have been added on
0:43:29 > 0:43:30at a later stage.
0:43:30 > 0:43:33There's a bit of a gap between bathroom and kitchen, which I like.
0:43:33 > 0:43:37The bathroom extension did provide enough room for a back door
0:43:37 > 0:43:38into the garden.
0:43:38 > 0:43:41The house was bought by James, who was hoping to add it to
0:43:41 > 0:43:45his rental portfolio, but the auction was a bit hectic
0:43:45 > 0:43:49and he only got the finances just in time to bid.
0:43:49 > 0:43:53I did not get an e-mail through until about lot four or five.
0:43:53 > 0:43:55This was lot nine, so it was all a bit of a rush.
0:43:55 > 0:43:59Then I had to register to bid, so I was not even in the auction room
0:43:59 > 0:44:00until about lot seven.
0:44:00 > 0:44:04Getting the go-ahead two lots before the one you are after
0:44:04 > 0:44:06has to be a record, I would think.
0:44:06 > 0:44:10It looked like the ceiling coverings were going for their own record
0:44:10 > 0:44:14for the biggest variety of retro styles, from textured wallpaper
0:44:14 > 0:44:18to textured paint and a selection of polystyrene tiles -
0:44:18 > 0:44:21although some of those looked like they were failing in their mission
0:44:21 > 0:44:23to conceal what lies beneath.
0:44:25 > 0:44:29The ceilings seem to be collapsing. The joists are falling away
0:44:29 > 0:44:32from the support. It is not just the weight of the plasterboard
0:44:32 > 0:44:35at present. So, that needs ripping down and having a good look at.
0:44:35 > 0:44:39- There might be more problems ahead. - James was predicting a five-month
0:44:39 > 0:44:43timescale, spurred on by the pressure of the bridging loan.
0:44:43 > 0:44:48We are back 11 months later to find out what problems lay ahead
0:44:48 > 0:44:50for James and how he got through them.
0:44:50 > 0:44:54With the fireplace opened up, the kitchen looks much better
0:44:54 > 0:44:58and brighter, not to mention these really smart kitchen units.
0:44:59 > 0:45:02# Oh-oh, oh-oh, oh-oh
0:45:02 > 0:45:05- # I'm going to follow you home - Oh-oh, oh-oh, oh-oh
0:45:05 > 0:45:08- # I'm going to follow you home - Oh-oh, oh-oh, oh-oh
0:45:08 > 0:45:13- # I'm going to follow you home - Oh-oh, oh-oh, oh-oh, oh-oh... #
0:45:13 > 0:45:17James fitted the new kitchen units himself, as well as tackling
0:45:17 > 0:45:20the plastering of the downstairs rooms,
0:45:20 > 0:45:22tiling, flooring and plumbing.
0:45:24 > 0:45:26Through to the bathroom,
0:45:26 > 0:45:28which used to looked like this.
0:45:30 > 0:45:33Now, there is a P-Shaped bath that gives plenty of width
0:45:33 > 0:45:36for a shower above.
0:45:36 > 0:45:40Although the layout is the same, the end result is a vast improvement.
0:45:41 > 0:45:44The lounge, too, with its new neutral tones,
0:45:44 > 0:45:48front door, laminate flooring and the carpentry completes
0:45:48 > 0:45:51the changes in the downstairs rooms.
0:45:51 > 0:45:53# Oh-oh, oh-oh, oh-oh
0:45:53 > 0:45:54# I'm going to follow you home
0:45:54 > 0:45:56# Oh-oh, oh-oh, oh-oh
0:45:56 > 0:45:58# I'm going to follow you... #
0:46:00 > 0:46:03James moved into the house during the refurbishment,
0:46:03 > 0:46:06sometimes with the company of his partner's dog, George.
0:46:06 > 0:46:10So, was moving into the house a good idea?
0:46:10 > 0:46:14Probably, it turned out to be a false economy, because I thought
0:46:14 > 0:46:18I would be able to save money by living here at the same time,
0:46:18 > 0:46:21but as it happened, it made me take longer, I guess,
0:46:21 > 0:46:25because you become comfortable. So, I have been paying council tax
0:46:25 > 0:46:28and gas and electricity for far longer than I should have done.
0:46:28 > 0:46:30I should've got on with it much, much quicker,
0:46:30 > 0:46:34so I'll not make that mistake again. Yeah, it's a lovely street,
0:46:34 > 0:46:37very nice neighbours, so I've been quite happy being here, anyway.
0:46:39 > 0:46:42Well, the sleeping quarters have definitely improved during the term
0:46:42 > 0:46:44of James's residence,
0:46:44 > 0:46:48with a more soothing colour scheme, comfier bed...
0:46:49 > 0:46:51..and George on guard duty.
0:46:51 > 0:46:53BARKING
0:46:53 > 0:46:57The upstairs ceilings were creaking under the weight of something.
0:46:57 > 0:47:00- So, what did it turn out to be? - It wasn't as bad as it looked.
0:47:00 > 0:47:04There was a lot of weight and rubble and debris and the water tanks,
0:47:04 > 0:47:06which caused the bowing of the ceiling.
0:47:06 > 0:47:10So, I did knock the ceiling through, but the joists still useable.
0:47:10 > 0:47:12And, finally, going from top to bottom,
0:47:12 > 0:47:15- how did the cellar turn out? - Although there is damp down there,
0:47:15 > 0:47:17it's not bad. I did run a radiator down there.
0:47:17 > 0:47:20I did whitewash the walls, but otherwise, there's not a lot
0:47:20 > 0:47:23can be done down there. The ceiling is a little bit low.
0:47:23 > 0:47:28James predicted a ten-grand budget, with a five-grand contingency fund.
0:47:28 > 0:47:30How did it all end up?
0:47:30 > 0:47:33All in all, it has turned out to be about £12,500 to £13,000.
0:47:33 > 0:47:36A couple of little bills still to pay, but I am not
0:47:36 > 0:47:38unpleased with that.
0:47:38 > 0:47:41It's now 11 months since our first visit,
0:47:41 > 0:47:44so it looks like the five-month estimate was way off.
0:47:44 > 0:47:46Any excuses, James?
0:47:46 > 0:47:49Since you were last here, I have now become a father,
0:47:49 > 0:47:53only last week. Got a little baby girl called Penelope.
0:47:53 > 0:47:56So, that has taken up a bit of my time more recently.
0:47:56 > 0:47:59My partner being pregnant, that has kept me away from here,
0:47:59 > 0:48:03so that slowed things down. But, yeah, absolutely delighted.
0:48:03 > 0:48:06Your excuse is accepted and congratulations to you
0:48:06 > 0:48:08and your partner.
0:48:09 > 0:48:13Let's see if James is as delighted when he gets two valuations
0:48:13 > 0:48:15from the estate agents we have called in.
0:48:16 > 0:48:20The aim has always been to rent out the property. First up, the agent
0:48:20 > 0:48:22who saw it before the work commenced.
0:48:24 > 0:48:28The replacement of the kitchen and bathroom has obviously enhanced -
0:48:28 > 0:48:31a required enhancement - and it has created a good rentable property.
0:48:31 > 0:48:34The big selling points regarding this property
0:48:34 > 0:48:37is the light and airy rooms, the modern bathroom and kitchen,
0:48:37 > 0:48:39and also the large garden.
0:48:41 > 0:48:45James has spent a total of 67 grand and whilst rental is his thing,
0:48:45 > 0:48:48let's find how much value he has added.
0:48:48 > 0:48:51If you were to place the property on the open market for sale,
0:48:51 > 0:48:54we would expect to achieve between £80,000 to £85,000.
0:48:54 > 0:48:57I think, if this property was put on the market for sale,
0:48:57 > 0:49:01it would hope to achieve between £85,000 to £90,000.
0:49:01 > 0:49:04That is what the bank assessed the property to be worth,
0:49:04 > 0:49:07so that's exactly what I anticipated its value would be
0:49:07 > 0:49:10some time ago, so I am very happy with that, yes.
0:49:10 > 0:49:13Taking the top figure, that is a potential pre-tax profit
0:49:13 > 0:49:17of 23 grand in the 11 months. Now the rental.
0:49:17 > 0:49:21If I was to place this on the rental market, the property would fetch
0:49:21 > 0:49:23between £450 and £475 per calendar month.
0:49:23 > 0:49:27If this was put on the rental market, I would expect it to achieve
0:49:27 > 0:49:32between £475 and £495 per calendar month.
0:49:32 > 0:49:36Again, taking the top figure and assuming a full annual term,
0:49:36 > 0:49:40that would be a yield of just short of 9%.
0:49:40 > 0:49:44The rental income I have achieved is within that range,
0:49:44 > 0:49:46so I am happy with that, yes.
0:49:46 > 0:49:49With baby Penelope now on the scene,
0:49:49 > 0:49:52James might have to hang up his motorcycling gloves just for
0:49:52 > 0:49:56a little while. This is him pictured in Kenya a few years ago,
0:49:56 > 0:49:59but this refurbishment has some consolations.
0:49:59 > 0:50:04I have tenants moving in next week, so a few days of effort will...
0:50:04 > 0:50:08The property will be ready for them. A local agent found those
0:50:08 > 0:50:11and they do actually want a 12-month contract and they've also stated
0:50:11 > 0:50:14that they want to work on the garden, so, hopefully,
0:50:14 > 0:50:16they will be excellent.
0:50:24 > 0:50:27Back now to south-east London and the district of Erith,
0:50:27 > 0:50:31which is in the Borough of Bexley. It is a part of London
0:50:31 > 0:50:34that is becoming more and more popular
0:50:34 > 0:50:37with renters and buyers alike, thanks to the Crossrail effect.
0:50:39 > 0:50:44I had the pleasure of looking around this two-bed mid-terrace property
0:50:44 > 0:50:47that had a guide price of £140,000 plus.
0:50:47 > 0:50:49Although it looked in poor condition,
0:50:49 > 0:50:52it seemed like the property was solid enough
0:50:52 > 0:50:56and had good proportions upstairs and down.
0:50:56 > 0:51:01For me, the biggest issue was that it sat on a very busy road.
0:51:01 > 0:51:05One improvement that is definitely high on the agenda, though,
0:51:05 > 0:51:09is upgrading the double glazing. You want triple glazing in here,
0:51:09 > 0:51:12to try and cut down on that road noise.
0:51:12 > 0:51:16The busy city road didn't put buyers off, with it racing past
0:51:16 > 0:51:21its guide price and screeching to a halt at 176,000.
0:51:22 > 0:51:24Sold. 176.
0:51:24 > 0:51:28The successful bidder was property developer Harbinder
0:51:28 > 0:51:31who, along with his builder Robert, had done his homework in the area
0:51:31 > 0:51:33and spotted the potential.
0:51:35 > 0:51:38We think you'll find it's very difficult to buy properties
0:51:38 > 0:51:42at this moment in time and the prices have gone up substantially
0:51:42 > 0:51:44- over a very short period of time. - Roughly, can you quantify it?
0:51:44 > 0:51:48Over the last 12 months, the average three-bedroom house has gone up
0:51:48 > 0:51:50- between £70,000 to £100,000.- Wow!
0:51:50 > 0:51:52Harbinder planned to add
0:51:52 > 0:51:55this property to his portfolio of rentals and had earmarked
0:51:55 > 0:51:58a modest budget of £8,000 to £10,000
0:51:58 > 0:52:02and a timescale of three months to get the jobs done.
0:52:05 > 0:52:10It is now seven months later and time to see if Harbinder
0:52:10 > 0:52:13has been able to turn this from derelict to delicious.
0:52:19 > 0:52:24Well, my goodness. The brand-new kitchen is incredible.
0:52:24 > 0:52:28They have cleverly used the space to maximise what they have got.
0:52:30 > 0:52:33The bathroom has stayed downstairs, but has a whole new suite
0:52:33 > 0:52:36that looks really smart with its high-end finish.
0:52:45 > 0:52:48There is still work to be done, but they have rewired
0:52:48 > 0:52:52the entire property and then skimmed and decorated the walls.
0:52:53 > 0:52:57Due to some old joists, they also took the decision
0:52:57 > 0:53:00to lay new flooring down. Very wise.
0:53:04 > 0:53:08Upstairs, the bedrooms are 80% there. You can clearly see
0:53:08 > 0:53:12the high-quality finish that is being strived for.
0:53:14 > 0:53:17They have also replaced all the windows in the property, making sure
0:53:17 > 0:53:21they are double glazed, to keep that traffic noise out.
0:53:24 > 0:53:28New fencing has gone up out the back, but the garden itself
0:53:28 > 0:53:30is still a work in progress.
0:53:31 > 0:53:35Despite this only being partially finished, Harbinder and his team
0:53:35 > 0:53:39have clearly done a huge amount of work and have completely transformed
0:53:39 > 0:53:41this property.
0:53:41 > 0:53:44We are nearly finished now. I would say about four or five days.
0:53:44 > 0:53:47We've come to the end now, other than outside.
0:53:47 > 0:53:49The inside of the house is pretty much finished.
0:53:49 > 0:53:52There is a few odd bits that need to be done and snagging at the end.
0:53:52 > 0:53:55For me, the biggest challenge here was that it is a busy time
0:53:55 > 0:53:59and it is getting the right contractors at the right time.
0:53:59 > 0:54:02That has been the biggest challenge. It has taken longer than expected.
0:54:02 > 0:54:06We have been here five months. Initially, if we had a full team
0:54:06 > 0:54:08on site, and there was four workers here, you could probably
0:54:08 > 0:54:11do it within two, two-and-a-half months.
0:54:11 > 0:54:12Where we've had contractors
0:54:12 > 0:54:15coming in - electrical, plumbing - and then fitting them in around
0:54:15 > 0:54:18their times, because everyone is busy at the moment,
0:54:18 > 0:54:21it has taken longer than expected. Due to personal reasons, as well,
0:54:21 > 0:54:24we've been doing other stuff, so we have not really given this
0:54:24 > 0:54:27property the attention for the timescale, if you want.
0:54:27 > 0:54:32Initially, the budget was around the 10,000 mark and I was thinking
0:54:32 > 0:54:36a maximum of 14,000. That was with a mind to rent the property out.
0:54:36 > 0:54:41On the course of the journey, it was apparent that I needed
0:54:41 > 0:54:44to sell the property to release some finances.
0:54:44 > 0:54:47So, we then decided to renovate the property to a higher spec
0:54:47 > 0:54:52and higher standard, so the budget has taken me up to £24,000 now.
0:54:54 > 0:54:55# You've got to roll with it
0:54:55 > 0:54:57# You've got to take your time
0:54:57 > 0:55:01# You gotta say what you say Don't let anybody get in your way
0:55:01 > 0:55:06# Cos it's all too much for me to take... #
0:55:06 > 0:55:10Yes, plans changed so much for Harbinder, and his builder Robert
0:55:10 > 0:55:14had to move on to a bigger project, due to the delays here.
0:55:14 > 0:55:17But Harbinder is an experienced developer
0:55:17 > 0:55:21and knows that the goalposts can move on these sort of projects,
0:55:21 > 0:55:23although the flooring in the property
0:55:23 > 0:55:27- did pose something of a challenge. - Basically, we knew there were issues
0:55:27 > 0:55:30with the floor, when we came to view the property, but when we looked,
0:55:30 > 0:55:34basically, the middle joist had warped, so we had to replace that.
0:55:34 > 0:55:37And we had to re-strengthen the existing joists
0:55:37 > 0:55:39and add additional ones.
0:55:39 > 0:55:44Best to do the job properly and have no problems in the future.
0:55:45 > 0:55:49All in all, then, Harbinder has spent £200,000
0:55:49 > 0:55:53and decided to sell, rather than rent. But is this a wise decision?
0:55:54 > 0:55:57We asked two local estate agents for their opinions,
0:55:57 > 0:56:00starting with the agent who saw it originally.
0:56:01 > 0:56:03The property has had a huge improvement
0:56:03 > 0:56:07from before. It was a fairly derelict property before, so now,
0:56:07 > 0:56:09yeah, it is completely up to scratch.
0:56:09 > 0:56:12I know there is a little bit to finish, but you can see the finishes
0:56:12 > 0:56:13have been done very well.
0:56:13 > 0:56:16After looking around the property, you can see that it's done
0:56:16 > 0:56:17to a nice quality.
0:56:17 > 0:56:20Obviously, there are a few bits which need to be finished,
0:56:20 > 0:56:24but downstairs, the bathroom and kitchen look really nice
0:56:24 > 0:56:27and you can see that it is done to a very high standard.
0:56:27 > 0:56:30If we were going to put this on to the rental market, I would hope
0:56:30 > 0:56:33to achieve in the region of £1,150 to £1,200
0:56:33 > 0:56:35per calendar month.
0:56:35 > 0:56:39I believe that this property could achieve £1,100 per calendar month
0:56:39 > 0:56:41on the current rental market.
0:56:41 > 0:56:45The top rental of £1,200 per calendar month would bring in
0:56:45 > 0:56:48a healthy yield of just over 7%,
0:56:48 > 0:56:51but remember, Harbinder has decided to sell, not rent.
0:56:54 > 0:56:57I believe that the owner could achieve up to £250,000
0:56:57 > 0:56:58on the open market.
0:56:58 > 0:57:01So, if this property was to go on the open sales market,
0:57:01 > 0:57:05I would be looking to achieve in the region of £250,000.
0:57:05 > 0:57:08Excellent. That is exactly... That is what I have in mind.
0:57:08 > 0:57:11If I can achieve that, I will be happy.
0:57:11 > 0:57:15That valuation of £250,000 would mean a pre-tax profit
0:57:15 > 0:57:21of £50,000, making Harbinder's auction purchase a great success.
0:57:21 > 0:57:23And he has got some advice for those looking to visit
0:57:23 > 0:57:27their own local auction house.
0:57:27 > 0:57:29Auctions - it is exciting.
0:57:29 > 0:57:32You know, it is a bit of an adrenaline rush, I must say,
0:57:32 > 0:57:36when you go out to buy at auction. You have to be careful.
0:57:36 > 0:57:39You can get caught up in the moment. I would buy at auction again.
0:57:39 > 0:57:42I have done so in the past, more than once, and I will continue to,
0:57:42 > 0:57:44yeah, definitely.
0:57:46 > 0:57:50Well, if you are FELINE like becoming a property developer,
0:57:50 > 0:57:53we hope we've given you the inspiration you need.
0:57:53 > 0:57:56Yes, have we inspired you to head down to your local auction room?
0:57:56 > 0:57:59Or maybe you are more of an armchair enthusiast?
0:57:59 > 0:58:01That is OK, because here on Homes Under The Hammer,
0:58:01 > 0:58:06- we've got loads more stories. See you next time.- Goodbye.- Goodbye. - Purr-rr!