0:00:02 > 0:00:03Hello and welcome to the show.
0:00:03 > 0:00:06Now, if investing in property tickles your fancy,
0:00:06 > 0:00:09then it's really important to know what's going on in the market.
0:00:09 > 0:00:13Yep, it's important to do your homework and brush up on your local knowledge, as well.
0:00:13 > 0:00:14Yes, and once you've done that,
0:00:14 > 0:00:18why not pop along to your local property auction and see what's on offer?
0:00:43 > 0:00:45Well, it goes without saying
0:00:45 > 0:00:48that people are always looking for value for money -
0:00:48 > 0:00:50and auctions certainly provide that.
0:00:50 > 0:00:52Yeah, correct, Martin. A lot of people get carried away
0:00:52 > 0:00:54in the auction room - and don't take it for granted.
0:00:54 > 0:00:57Mm. Did that happen on the show today? Let's find out.
0:00:59 > 0:01:03This former public house in Folkestone sets Lucy's heart racing.
0:01:03 > 0:01:06- I love the exterior of the building...- Me, too.
0:01:06 > 0:01:08- ..I love the windows...- Me, too!
0:01:09 > 0:01:10In North Birmingham,
0:01:10 > 0:01:13another cracking property, but not in a good way.
0:01:13 > 0:01:16There's no getting away from the fact that that is
0:01:16 > 0:01:18an issue that needs to be resolved.
0:01:19 > 0:01:21And prepare to get your hands dirty
0:01:21 > 0:01:24in this three-bed terrace flat in Telford.
0:01:24 > 0:01:27You can actually see where the pictures have been,
0:01:27 > 0:01:30cos that's, er, nicotine stains.
0:01:30 > 0:01:32All these properties have been sold at auction,
0:01:32 > 0:01:34and we'll find out who bought them
0:01:34 > 0:01:37and what they paid when they went under the hammer.
0:01:37 > 0:01:38It is yours, sir. Well done!
0:01:42 > 0:01:43This is Folkestone,
0:01:43 > 0:01:47a regenerated and rejuvenated Kentish seaside town
0:01:47 > 0:01:52with wonderful views and equally wonderful train links to London.
0:01:52 > 0:01:53A place to invest?
0:01:53 > 0:01:55I think so.
0:01:56 > 0:01:59When the tide is high, the harbour is picturesque.
0:01:59 > 0:02:02The Leas Promenade has views over to France
0:02:02 > 0:02:04and is a great place to take a stroll.
0:02:04 > 0:02:08There is also the town centre, which buzzes with creative energy.
0:02:08 > 0:02:11Oh, yes, Folkestone has changed.
0:02:11 > 0:02:14So what does it hold in the way of property opportunities?
0:02:14 > 0:02:18Not far from the town centre and the harbour
0:02:18 > 0:02:21and very close to Folkestone West train station
0:02:21 > 0:02:23is the property I'm here to see.
0:02:23 > 0:02:25And what a lot of property it is!
0:02:25 > 0:02:30Look! It is this massively huge former grand pub,
0:02:30 > 0:02:33which was sold with planning permission to convert into flats -
0:02:33 > 0:02:38all for the guide price of £200,000 to 220,000.
0:02:38 > 0:02:39It really is imposing,
0:02:39 > 0:02:43with beautiful sandstone mouldings on the facade.
0:02:43 > 0:02:46The road is busy, but there is plenty of parking to the side,
0:02:46 > 0:02:47which is a very good start.
0:02:47 > 0:02:49Oh, wow!
0:02:49 > 0:02:51Wow! What a space!
0:02:51 > 0:02:55I absolutely love it. Somebody's done all the ripping out for you,
0:02:55 > 0:02:57how fantastic!
0:02:57 > 0:03:00Now, before we go any further, let's go through these plans,
0:03:00 > 0:03:04because what we're viewing here is a development site with walls.
0:03:04 > 0:03:08So, you've got two two-beds on the ground floor, here and here,
0:03:08 > 0:03:13and two one-beds, all with open-plan living-kitchen areas,
0:03:13 > 0:03:17which is lovely. Now, on the first floor, you've got two more two-beds,
0:03:17 > 0:03:21and on the top floor, in currently unused attic space,
0:03:21 > 0:03:25you've got two further flats up there, one one-bed and one two-bed.
0:03:25 > 0:03:28So that is a total of eight flats,
0:03:28 > 0:03:31five with two bedrooms and three with one.
0:03:31 > 0:03:33You know, it's a sizeable development,
0:03:33 > 0:03:37with every ounce of space utilised to its max.
0:03:37 > 0:03:38Very impressive.
0:03:38 > 0:03:41There's tons of square footage to play with here.
0:03:41 > 0:03:46There's even a cellar designated as a photographic studio on the plans.
0:03:46 > 0:03:51Potentially some more resale or rental pennies to be earned here.
0:03:51 > 0:03:52But it is important at this stage
0:03:52 > 0:03:55to try and picture the flats that have been planned.
0:03:55 > 0:04:00So where I'm standing now is going to be a one-bedroom flat,
0:04:00 > 0:04:02and the good thing about having the plans
0:04:02 > 0:04:03is that you can see it on paper,
0:04:03 > 0:04:07but it's even better being able to actually pace it out.
0:04:07 > 0:04:13So, I'm imagining a wall going up along here, a wall going along here.
0:04:13 > 0:04:18You're going to have a bedroom over there, a bathroom in this corner,
0:04:18 > 0:04:21then you've got to have a kitchen, the living area.
0:04:21 > 0:04:25I mean, this is going to feel like a lovely, spacious one-bedroom flat,
0:04:25 > 0:04:28and the best bit are the beautiful windows.
0:04:28 > 0:04:31I mean, they really are stunning and letting in loads of light.
0:04:31 > 0:04:35So this one, fantastic, I really like this property.
0:04:35 > 0:04:40Next door? Well, I don't know, it just feels a little more...
0:04:40 > 0:04:42It's a bit more squeezed, it doesn't feel as big,
0:04:42 > 0:04:44it's certainly not as wide.
0:04:44 > 0:04:46Again you've got to imagine the wall here,
0:04:46 > 0:04:49you've got a wall going up there, a bathroom,
0:04:49 > 0:04:50you've got the bedroom at the back,
0:04:50 > 0:04:53a much smaller kitchen and living area.
0:04:53 > 0:04:55A lovely big window, though, there.
0:04:55 > 0:04:57Now, I'm sure because this flat's smaller,
0:04:57 > 0:04:59it will be reflected in the price.
0:04:59 > 0:05:02There's eight flats going up in this great big pub.
0:05:02 > 0:05:04It's certainly going to be an interesting development.
0:05:04 > 0:05:07When you're converting an old building like this,
0:05:07 > 0:05:09you have to work with the space available.
0:05:09 > 0:05:11This is not a new-build with identical units,
0:05:11 > 0:05:13and that will be part of its appeal.
0:05:13 > 0:05:16Some flats will be bigger, some will have more character,
0:05:16 > 0:05:18but as long as they are a decent standard,
0:05:18 > 0:05:20there shouldn't be any problems selling or renting
0:05:20 > 0:05:22in this part of town.
0:05:25 > 0:05:28Upstairs, there will be a rear two-bedroom flat
0:05:28 > 0:05:29with its own roof terrace
0:05:29 > 0:05:33leading off the kitchen-living-dining area.
0:05:33 > 0:05:36The stairs will be moved to come up from the side entrance,
0:05:36 > 0:05:39so this landing will be fully utilised into the rear flat.
0:05:41 > 0:05:42And at the front...
0:05:44 > 0:05:46Come on, then. I'm going to let you in to have a look around
0:05:46 > 0:05:50what I think is going to be the best flat upstairs.
0:05:50 > 0:05:54Now, this is just going to be such a wonderful space to live in.
0:05:54 > 0:05:56Open-plan kitchen,
0:05:56 > 0:05:59you can have a living area here, lovely views out there,
0:05:59 > 0:06:02going to have a bedroom here, bathroom in the middle,
0:06:02 > 0:06:03bedroom to the side.
0:06:03 > 0:06:06It's going to be the whole width of the entire building.
0:06:06 > 0:06:08It's going to be quite an exciting development,
0:06:08 > 0:06:11and I think this is going to be the best flat of them all.
0:06:14 > 0:06:15Well, that's what Lucy thinks,
0:06:15 > 0:06:19but let's find out a local estate agent's opinion of this development.
0:06:21 > 0:06:25I love this building. It's got great style, the facade is wonderful,
0:06:25 > 0:06:29and there's a lot of space in here, so a lot to be worked with.
0:06:29 > 0:06:32It's a very good idea to put money into Folkestone at this time.
0:06:32 > 0:06:35The regeneration plans that are under way
0:06:35 > 0:06:36and are on the table at the moment
0:06:36 > 0:06:40are such that I think Folkestone is, in five years' time,
0:06:40 > 0:06:42going to be somewhere where
0:06:42 > 0:06:45it's going to really pay back on people who've invested now.
0:06:45 > 0:06:48This is a huge development with many possibilities,
0:06:48 > 0:06:53so it is time for everyone's favourite subject - maths!
0:06:53 > 0:06:55As far as potential for resale,
0:06:55 > 0:06:57they've got two bedrooms on the plans
0:06:57 > 0:06:59and one bedroom units on the plans.
0:06:59 > 0:07:02Two-bedrooms, depends on the finish that they've given to them,
0:07:02 > 0:07:04but it would be in the region of
0:07:04 > 0:07:07between £85,000 and £105,000 in this area.
0:07:07 > 0:07:10As far as the one-bedrooms are concerned,
0:07:10 > 0:07:14between £60,000 and £80,000. Depends on quality.
0:07:14 > 0:07:20So that's a total end value of between £605,000 and £765,000.
0:07:20 > 0:07:24If the property was bought at the top end of the guide, at say 220,
0:07:24 > 0:07:27and 300,000 spent on the work,
0:07:27 > 0:07:31there's still a profit of between £85,000 and £245,000,
0:07:31 > 0:07:34depending on spec and the market conditions.
0:07:35 > 0:07:37And as for rental...
0:07:38 > 0:07:40The one-bed flats would let
0:07:40 > 0:07:45for something in the range of £385 to £500 per calendar month,
0:07:45 > 0:07:47and the two-bed flats
0:07:47 > 0:07:50in the range of £600 to £650 per calendar month.
0:07:50 > 0:07:52Are you following all of this?
0:07:52 > 0:07:53Working with the same figures,
0:07:53 > 0:07:57that's an annual income of around £50,000 up to 57,000
0:07:57 > 0:08:00and a yield of 11%.
0:08:00 > 0:08:02Does that float your boat?
0:08:02 > 0:08:06So, I reckon this is an attractive and exciting conversion
0:08:06 > 0:08:08with profit built in.
0:08:08 > 0:08:10Let's see who went for it at the auction.
0:08:13 > 0:08:18On into lot 113, super looking detached building and car park,
0:08:18 > 0:08:19used to be a pub.
0:08:19 > 0:08:22200 would be a good place to start me, 200.
0:08:22 > 0:08:23At 200,000.
0:08:23 > 0:08:25180?
0:08:25 > 0:08:28180, don't mind where we start. 180,000, I'm on the way, 180.
0:08:28 > 0:08:30I've got a gentleman sitting down at 180,
0:08:30 > 0:08:32can I take 185 from you at the back?
0:08:32 > 0:08:34185 I have. And 90.
0:08:34 > 0:08:37190, and five, 195.
0:08:37 > 0:08:41At £190,000 I'm bid, 195 I'm looking for.
0:08:41 > 0:08:43195. 195.
0:08:43 > 0:08:49Just one bid, at 195. 200 I've got. 200, 210 now, if you like.
0:08:49 > 0:08:50220, it's against you.
0:08:50 > 0:08:54220. 220, it's with you, madam, at the back, at 220,
0:08:54 > 0:08:56just raise your card again to make sure, 220.
0:08:56 > 0:09:0025 if you like, it's in the room to sell it for £220,000,
0:09:00 > 0:09:01make no mistake.
0:09:01 > 0:09:03Now is the chance to bid again if you want it.
0:09:03 > 0:09:08At £220,000 we've got, then. For the first time...
0:09:08 > 0:09:11You're all out at the moment, at £220,000 for the second time.
0:09:12 > 0:09:15If you're sure you're all done, 220 for the third and final time,
0:09:15 > 0:09:16right at the back.
0:09:16 > 0:09:18It's yours at £220,000.
0:09:18 > 0:09:22And that bid of 220,000 was bang on the guide price.
0:09:22 > 0:09:25It was made by siblings Wendy and Chris.
0:09:25 > 0:09:27They are not from the area,
0:09:27 > 0:09:31but all of Wendy's five brothers are involved in the building trade
0:09:31 > 0:09:35in one way or another, so she is well placed to take on this project.
0:09:35 > 0:09:37Some people get all the luck.
0:09:37 > 0:09:41Lucy met them back at the pub to find out more.
0:09:43 > 0:09:46Wendy and Chris, congratulations. This is a lovely pub!
0:09:46 > 0:09:49- I'm so glad you bought it! - Lovely, isn't it?- Thank you.
0:09:49 > 0:09:51What is it you loved about it enough
0:09:51 > 0:09:53to want to buy it on auction day, Wendy?
0:09:53 > 0:09:55- I love the exterior of the building...- Me, too.
0:09:55 > 0:09:57- ..I love the windows...- Me, too!
0:09:57 > 0:09:59I think there's a big wow factor
0:09:59 > 0:10:02that could be brought into this building.
0:10:02 > 0:10:04I just fell in love with it.
0:10:04 > 0:10:06So, are you both in the property developing business?
0:10:06 > 0:10:08I've done a bit, yes. Yeah, yeah.
0:10:08 > 0:10:11I've got quite a few properties that I rent out,
0:10:11 > 0:10:15and I've also renovated quite a few properties in the past.
0:10:15 > 0:10:18- So is this a project for both of you?- Yes.
0:10:18 > 0:10:20This is the first time we've actually ever...
0:10:20 > 0:10:21- Worked together.- ..worked together.
0:10:21 > 0:10:24So, who's going to be playing what role?
0:10:25 > 0:10:28OK, well, I'm all about the finance,
0:10:28 > 0:10:33- and Chris is all about project management of the property. - That's it, yeah.
0:10:33 > 0:10:36I do a little bit, but most of it should be project management.
0:10:36 > 0:10:39It comes with planning permission, a lot of hard work
0:10:39 > 0:10:42with this development has already been done,
0:10:42 > 0:10:45so it must have been much more of an attractive buy for you on auction day.
0:10:45 > 0:10:47Definitely, definitely.
0:10:47 > 0:10:50Cos now we can sort of move straight in
0:10:50 > 0:10:53and start doing the work straight away. Um...
0:10:53 > 0:10:56And you could actually walk round the place
0:10:56 > 0:10:58and relay it to the plans
0:10:58 > 0:11:01and your mind just goes "wow", doesn't it?
0:11:01 > 0:11:03"I can do this, I can do that, I can do that."
0:11:03 > 0:11:05It is an inspiring development.
0:11:05 > 0:11:06Wendy is right,
0:11:06 > 0:11:09there are lots of nice, well-designed spaces here
0:11:09 > 0:11:10that will make lovely homes.
0:11:10 > 0:11:14But these developers must be planning some changes?
0:11:14 > 0:11:15One of them toilet blocks
0:11:15 > 0:11:18was going to be used for the photographic studio down below.
0:11:18 > 0:11:20Which was going to be down in the basement.
0:11:20 > 0:11:22That's right, yeah, so what we're going to do now,
0:11:22 > 0:11:25now we're not doing that and making it into storage, we're going to...
0:11:25 > 0:11:27utilise that to make it a bigger bedroom.
0:11:27 > 0:11:30So you're stealing the loos to add to the floor space,
0:11:30 > 0:11:33- which is a great idea. - That's right, yeah.
0:11:33 > 0:11:36So, are you going to make it into a three-bed,
0:11:36 > 0:11:38or just a really workable, spacious two-bed?
0:11:38 > 0:11:40A lovely two-bed.
0:11:40 > 0:11:42I think that's a great idea.
0:11:42 > 0:11:44- Yeah, it's going to be a beautiful room. - And you're no longer going to be
0:11:44 > 0:11:47having the photographic studio downstairs in the cellar.
0:11:47 > 0:11:49That's correct,
0:11:49 > 0:11:51we're just going to turn that into storage now for everybody
0:11:51 > 0:11:53that lives in the apartments.
0:11:53 > 0:11:55Great idea.
0:11:55 > 0:11:58Wendy and Chris are losing the possibility of making a profit
0:11:58 > 0:12:01from the space below to create storage,
0:12:01 > 0:12:03but somewhere to keep your bike, or whatever,
0:12:03 > 0:12:05can be a real bonus for buyers
0:12:05 > 0:12:08and make them so much easier to sell.
0:12:08 > 0:12:09So, what's their budget?
0:12:09 > 0:12:13The budget at the moment is set at 200,000.
0:12:13 > 0:12:14OK.
0:12:14 > 0:12:16- So...- I'm quite surprised by that.
0:12:16 > 0:12:19That is only for the structural work, for getting them there.
0:12:19 > 0:12:22The finishing and the furnishing of them,
0:12:22 > 0:12:23with the kitchens and bathrooms,
0:12:23 > 0:12:25- there's another budget for that. - Yeah.
0:12:25 > 0:12:27So, come on, I want your overall budget.
0:12:27 > 0:12:30What are you going to be throwing at this? How much money?
0:12:30 > 0:12:32- We're probably looking at about 270...- OK.
0:12:32 > 0:12:36- ..to 300, something like that.- 270K to get it where you want it.- Yeah.
0:12:36 > 0:12:39Guys, I'm so excited for you, good luck with this project,
0:12:39 > 0:12:41and I cannot wait to check out each individual flat
0:12:41 > 0:12:44- and see which one I like the best! - Cheers.- Lovely to meet you.
0:12:44 > 0:12:47Lovely to meet you, too.
0:12:47 > 0:12:52Wendy and Chris have a fabulously exciting project here,
0:12:52 > 0:12:57and I don't think these will be your run-of-the-mill boxy new-builds.
0:12:57 > 0:13:01I am hoping they will be interesting, unique, plush pads.
0:13:01 > 0:13:04You can find out if they are later on in the programme.
0:13:09 > 0:13:11Let's head to north Birmingham now,
0:13:11 > 0:13:14and this area is close to Sutton Park.
0:13:14 > 0:13:17With trains from nearby Sutton Coldfield station
0:13:17 > 0:13:20taking just 20 minutes to Birmingham city centre,
0:13:20 > 0:13:22this is a very popular area.
0:13:23 > 0:13:28Well, through Sutton Park brings you to an area known as Kings Standing.
0:13:28 > 0:13:31And very nice it is, too.
0:13:31 > 0:13:33So... Whoa, good news.
0:13:33 > 0:13:38110 to 115,000 quid for this...
0:13:38 > 0:13:41semidetached three-bed, around here? Mmm!
0:13:41 > 0:13:44For a sought-after area like this,
0:13:44 > 0:13:47that guide price sounds suspiciously good.
0:13:50 > 0:13:53Well, it's looking from the outside like a classic 1930s,
0:13:53 > 0:13:56and, you know what? You come inside and it is,
0:13:56 > 0:14:02surprise, surprise, from the '50s. No! It's a 1930s, absolutely, 100%.
0:14:02 > 0:14:05There's even, as you walk through the door, just a classic layout here.
0:14:05 > 0:14:08This little hallway area, stairs up to the bedrooms.
0:14:08 > 0:14:11Front living room area there, with an open fire, which is good news.
0:14:11 > 0:14:15A classic design flaw of these kind of era of houses,
0:14:15 > 0:14:20a kitchen which is way too small for the size of house.
0:14:20 > 0:14:22I don't know where that came from in this era,
0:14:22 > 0:14:26but it was always like that, from my experience.
0:14:26 > 0:14:28There is an easy solution, though.
0:14:28 > 0:14:30Because when you come through into here,
0:14:30 > 0:14:34which is a rear living room area, there's always that wall over there,
0:14:34 > 0:14:36knock that down to create a really nice...
0:14:36 > 0:14:40sort of through-flow kitchen-living space.
0:14:40 > 0:14:44This room benefits from that, a lovely view out to the garden...
0:14:44 > 0:14:47Even want to increase the size of that door, perhaps,
0:14:47 > 0:14:50in that bay there, to make even more of that.
0:14:51 > 0:14:55And you might have to do a little bit of jiggery-pokery
0:14:55 > 0:14:58around this area, anyway, because, as you can see,
0:14:58 > 0:15:01there's a few signs of cracks -
0:15:01 > 0:15:05one down there, some up on the ceiling, and a little one there.
0:15:05 > 0:15:09It could be that has started to drop, causing that problem, but if
0:15:09 > 0:15:12you're going to do some playing around with this area anyway,
0:15:12 > 0:15:14taking out that wall, you're going to have acrow props,
0:15:14 > 0:15:16you're going to have people with large hammers...
0:15:16 > 0:15:18It'll all be done at the same time, so not a problem.
0:15:18 > 0:15:22OK, it is a problem, but it's not an insurmountable problem.
0:15:22 > 0:15:28# If that's the biggest problem I've got, no problem. #
0:15:28 > 0:15:31I'm not saying that cracks are always no problem.
0:15:31 > 0:15:35If they're wider than 3mm diagonal and wider at the top,
0:15:35 > 0:15:37or visible inside and out,
0:15:37 > 0:15:40that could be the telltale signs of subsidence.
0:15:42 > 0:15:46So, upstairs, it's all very dated, as you might have expected,
0:15:46 > 0:15:50and whoever was here last had a real love of flowery wallpaper!
0:15:50 > 0:15:54All the bedrooms have got... Yeah, well, exactly that.
0:15:54 > 0:15:57Flowery wallpaper. But it's nicely proportioned.
0:15:57 > 0:16:02Two... A very small box room, medium-size front bedroom there.
0:16:02 > 0:16:06Half-decent bathroom. Needs completely redoing.
0:16:06 > 0:16:11And then your rear bedroom here, with the bay, as at the front,
0:16:11 > 0:16:14and here the issue, again, is that crack.
0:16:14 > 0:16:17It obviously, and not surprisingly, extends up here,
0:16:17 > 0:16:21and, in fact, has affected some of the ceilings in here as well.
0:16:21 > 0:16:23There's no getting away from the fact that that is an issue
0:16:23 > 0:16:28that needs to be resolved. However, the good news is, in some ways,
0:16:28 > 0:16:32it's there, because it will put a lot of people off, perhaps,
0:16:32 > 0:16:34who viewed it before the auction.
0:16:34 > 0:16:38And if you can factor in the cost of actually doing the work
0:16:38 > 0:16:41to sort it out, and that's less than it would have cost you to buy
0:16:41 > 0:16:46a house round here which didn't have that problem, then you kind of...
0:16:46 > 0:16:48Yeah, stacking things in your favour.
0:16:48 > 0:16:49If you know what I'm talking about.
0:16:49 > 0:16:54# Oh, do you know Do you know what I mean? #
0:16:54 > 0:16:55As well as the cracks in here,
0:16:55 > 0:16:58there are cracks in this front bedroom too,
0:16:58 > 0:17:00so get them looked at pronto.
0:17:01 > 0:17:04At the back, there is a really good-sized garden,
0:17:04 > 0:17:07so perhaps you could look at extending to the back
0:17:07 > 0:17:08to create a bigger kitchen.
0:17:08 > 0:17:11Or, as a lot of people have done in this area,
0:17:11 > 0:17:13how about extending to the side,
0:17:13 > 0:17:16to create a garage and an extra bedroom and bathroom?
0:17:17 > 0:17:20It would depend on planning, of course, but you could potentially
0:17:20 > 0:17:24add a bathroom and a bedroom, which, if you didn't spend too much on
0:17:24 > 0:17:26in the build, could add to the property's value,
0:17:26 > 0:17:29especially if you get it for anything like the guide price
0:17:29 > 0:17:31of 110-115,000.
0:17:33 > 0:17:36We asked along an agent from the auction house who sold it
0:17:36 > 0:17:37to get his opinion.
0:17:39 > 0:17:42Having looked around this property, it's got great potential.
0:17:42 > 0:17:46It's got a large area at the side where a garage could be built,
0:17:46 > 0:17:47with one or two bedrooms over.
0:17:47 > 0:17:50It needs generally refurbishing throughout.
0:17:50 > 0:17:53I've seen some cracks, which I'm not too worried about,
0:17:53 > 0:17:55apart from the one in the back bedroom bay,
0:17:55 > 0:17:57which will need attention.
0:17:57 > 0:18:01If you were to extend, you're probably talking 50-60,000,
0:18:01 > 0:18:04and with fitting out, it could go to a lot more than that.
0:18:04 > 0:18:07Well, let's listen to some figures, then.
0:18:07 > 0:18:09Without an extension and a full refurbishment,
0:18:09 > 0:18:11including knocking through the kitchen,
0:18:11 > 0:18:14what rental and sales figures could be expected?
0:18:14 > 0:18:18As a three-bedroom property, this could sell for £195,000,
0:18:18 > 0:18:20and as a three-bed on the rental market,
0:18:20 > 0:18:24somewhere in the region of £700-750 per calendar month.
0:18:25 > 0:18:27OK, so what if you did do an extension,
0:18:27 > 0:18:30and add that fourth bedroom?
0:18:30 > 0:18:32As an extended four-bedroom property,
0:18:32 > 0:18:36this could sell in the region of £250-270,000,
0:18:36 > 0:18:39and could rent for around £1,000 per calendar month.
0:18:41 > 0:18:44Well, this is a classic auction property, isn't it?
0:18:44 > 0:18:48A house that could definitely benefit from improvement,
0:18:48 > 0:18:50but in a really nice area.
0:18:50 > 0:18:52Let's see who spotted it when it went under the hammer.
0:18:56 > 0:18:59Vacant freehold, semidetached property, in need of modernisation,
0:18:59 > 0:19:02but with three-bedroom accommodation.
0:19:02 > 0:19:04Start me where you will on that one.
0:19:04 > 0:19:06Ought to be about 130 to start, hadn't it?
0:19:06 > 0:19:08£130,000 to start.
0:19:08 > 0:19:12Thank you, sir, £130,000 is on my left, I'll take 140 now.
0:19:12 > 0:19:14Your bid, sir, at 130,000.
0:19:14 > 0:19:15Do I hear 140?
0:19:15 > 0:19:17140, sir? Thank you, 140.
0:19:17 > 0:19:19150 now, sir?
0:19:20 > 0:19:22145, if you like, sir?
0:19:22 > 0:19:25145,000. 150, sir?
0:19:25 > 0:19:27150 bid. 155, sir?
0:19:27 > 0:19:31The property got off to a flyer, with plenty of bidders interested.
0:19:31 > 0:19:33We rejoin the auction at 170,000.
0:19:35 > 0:19:38170. 172, sir?
0:19:38 > 0:19:40Where are you? 172?
0:19:40 > 0:19:42172 bid. 174?
0:19:43 > 0:19:45At 170...?
0:19:45 > 0:19:47No? 172?
0:19:47 > 0:19:50I'll draw a line under, for the first time, second time,
0:19:50 > 0:19:52third and very last time, the bid is there.
0:19:52 > 0:19:53174, just in time.
0:19:53 > 0:19:56176, I have another one.
0:19:56 > 0:19:58Have another one, sir. At 170...
0:19:58 > 0:20:00176, well done, sir.
0:20:00 > 0:20:02178, now, at the back.
0:20:02 > 0:20:05£176,000.
0:20:05 > 0:20:07Being sold this time.
0:20:07 > 0:20:10176. One, two, three...
0:20:10 > 0:20:12You're out at the back. The bid is there...
0:20:12 > 0:20:15It is yours, sir, well done.
0:20:15 > 0:20:16After a hard-fought battle,
0:20:16 > 0:20:19the successful bidder was part-time property developer Inderpal.
0:20:21 > 0:20:23He hails from London,
0:20:23 > 0:20:26and has chosen to invest here in the Midlands with two friends,
0:20:26 > 0:20:28Gurinder and Kurinder.
0:20:28 > 0:20:31I met Inderpal at his latest acquisition.
0:20:32 > 0:20:34Inderpal, nice to meet you.
0:20:34 > 0:20:36- Same. - Congratulations!
0:20:36 > 0:20:40- Thank you.- Tell me why you wanted to buy this house?
0:20:40 > 0:20:42We buy this house because this area is very nice,
0:20:42 > 0:20:44the schools are very good here,
0:20:44 > 0:20:49and good location, nice three-bed semidetached, and side-spacious,
0:20:49 > 0:20:51so that's why I bought this house.
0:20:51 > 0:20:53And did you come up to see it beforehand?
0:20:53 > 0:20:54- No. - GASPS
0:20:54 > 0:20:56- No. - When was the first time you saw it?
0:20:56 > 0:20:57- Today. - Today!
0:20:57 > 0:20:59- Yeah. - So just now?
0:20:59 > 0:21:02- Yeah. - So, what do you think?
0:21:02 > 0:21:04It's OK. It was very good, nice,
0:21:04 > 0:21:07very good area. Nice house.
0:21:07 > 0:21:10Good size of garden. I am very happy.
0:21:11 > 0:21:13Why didn't you come to see it beforehand?
0:21:13 > 0:21:15Because I don't have the time.
0:21:15 > 0:21:16Yeah, that's why.
0:21:16 > 0:21:20Was it not a bit strange, spending all that money on a house
0:21:20 > 0:21:23but not having seen it?
0:21:23 > 0:21:24You know, in the past,
0:21:24 > 0:21:29I bought a couple of property in the Midlands area without seeing it,
0:21:29 > 0:21:31and I made good money from that, right?
0:21:31 > 0:21:34So everything on the luck,
0:21:34 > 0:21:38so that's why I'm not interested to see the property before that,
0:21:38 > 0:21:40- before the buying. - This is not a strategy we recommend
0:21:40 > 0:21:43for you watching at home, OK?
0:21:44 > 0:21:46But it, hopefully, has turned out all right.
0:21:46 > 0:21:49One thing, obviously - have you seen the cracks?
0:21:49 > 0:21:51- No.- Oh, right.
0:21:51 > 0:21:53Well, after we've finished,
0:21:53 > 0:21:56there's a few cracks in some of the bay windows,
0:21:56 > 0:21:59and possibly a bit of subsidence going on.
0:21:59 > 0:22:00Is that a problem, or...?
0:22:00 > 0:22:04No, it's not a problem, because my partner is a builder.
0:22:04 > 0:22:07He lives in Oldbury, in the Birmingham area,
0:22:07 > 0:22:11and he's a builder, and we can sort it out. It's not a big deal.
0:22:11 > 0:22:13So whatever the issues are, he can sort it?
0:22:13 > 0:22:16Yeah, because he's in construction the last 20 years, right?
0:22:16 > 0:22:20- OK.- And he is a professional. It's not an issue.
0:22:20 > 0:22:25# Don't worry 'bout me... #
0:22:25 > 0:22:28Yes, do not try this at home, folks.
0:22:28 > 0:22:30Inderpal has got a background in building,
0:22:30 > 0:22:33but viewing properties before you buy them is very important,
0:22:33 > 0:22:36no matter your experience or confidence.
0:22:38 > 0:22:40What's the plan for it?
0:22:40 > 0:22:43The plan is to make five-bed, with garage.
0:22:43 > 0:22:45- Five? - Yeah.- How?
0:22:45 > 0:22:51We are thinking to side extension, and rear extension,
0:22:51 > 0:22:52and side double-storey.
0:22:52 > 0:22:54- Oh, wow. - So that is our plan,
0:22:54 > 0:22:56and after that, it depends on planning permission.
0:22:56 > 0:22:59If we will get the planning permission, then it is a five-bed.
0:22:59 > 0:23:01If we will not get the rear double-storey,
0:23:01 > 0:23:03then the plan is to make a four-bed.
0:23:04 > 0:23:06With the help of his partners, along with his brother,
0:23:06 > 0:23:08who just happens to be a builder,
0:23:08 > 0:23:12Inderpal estimates of the work will cost 55-60 grand,
0:23:12 > 0:23:15and 16-20 weeks to complete,
0:23:15 > 0:23:17after which he and his partners plan to sell.
0:23:20 > 0:23:22So, have you always been a property developer?
0:23:23 > 0:23:27Actually, I'm on the property because of Homes Under The Hammer.
0:23:27 > 0:23:30- Really?- Yeah. It's my favourite programme.
0:23:30 > 0:23:31Every day, I'm watching.
0:23:31 > 0:23:34And I've seen so many programmes, people are making money.
0:23:34 > 0:23:39But on that time, I don't have much money, and always thinking, one day,
0:23:39 > 0:23:43if I have money, definitely I'm going to buy a house from auction.
0:23:43 > 0:23:45- OK!- So, because of the Homes Under The Hammer,
0:23:45 > 0:23:47I have four properties now.
0:23:47 > 0:23:49- Four?!- Yeah. - Oh, great!
0:23:49 > 0:23:50- Yes.- Good to hear.
0:23:50 > 0:23:51I'm glad it's going well.
0:23:51 > 0:23:53Yeah, everything because of Homes Under The Hammer.
0:23:53 > 0:23:55Aw, well, that's really nice to hear.
0:23:55 > 0:23:57Good. Listen, congratulations.
0:23:57 > 0:23:59Good luck, and I'm glad we've helped out in some way.
0:23:59 > 0:24:00Thank you.
0:24:02 > 0:24:06So, another Homes Under The Hammer-inspired success story.
0:24:06 > 0:24:09That said, how can such a fan of Homes Under The Hammer
0:24:09 > 0:24:11ignore one of our basic principles,
0:24:11 > 0:24:14that you must always view a house before you buy it?
0:24:15 > 0:24:16Sometimes, I despair.
0:24:16 > 0:24:20Anyway, it seems like he has got a good project here,
0:24:20 > 0:24:23and a team of people who can turn it into a success.
0:24:23 > 0:24:25How will he get on? You can find out later in the show.
0:24:28 > 0:24:32Still to come - Mum knows best with this Telford property.
0:24:32 > 0:24:34I like to get her seal of approval. I wouldn't want to
0:24:34 > 0:24:37go and buy a house that she didn't think was a good house.
0:24:39 > 0:24:41And, in Sutton Coldfield,
0:24:41 > 0:24:44Inderpal knows a lot more about building extensions.
0:24:44 > 0:24:47It's very hard to make the side double-storey.
0:24:52 > 0:24:54Back now to Folkestone in Kent,
0:24:54 > 0:24:57where time had been called on this former pub.
0:24:59 > 0:25:01It was sold with plans in place to turn it into
0:25:01 > 0:25:06eight residential flats, and straight away, Lucy was impressed.
0:25:06 > 0:25:08Oh, wow.
0:25:08 > 0:25:10Wow! What a space!
0:25:10 > 0:25:12I absolutely love it.
0:25:12 > 0:25:15Somebody's done all the ripping out for you. How fantastic!
0:25:17 > 0:25:18The plans were already approved,
0:25:18 > 0:25:20with four flats on the ground floor
0:25:20 > 0:25:24to be made up of two two-beds and two one-beds.
0:25:24 > 0:25:27Then, on the first floor, you'd have two two-bedroom flats, and,
0:25:27 > 0:25:32in the unused loft, there would be another two-bed and another one-bed.
0:25:32 > 0:25:37All this for a guide price of £200-220,000.
0:25:37 > 0:25:39But, with a property in this condition,
0:25:39 > 0:25:41only the brave need apply.
0:25:44 > 0:25:47Step forward, brother and sister Chris and Wendy,
0:25:47 > 0:25:52who paid £220,000 at auction for this battered boozer.
0:25:52 > 0:25:56Wendy recently decided to become a property developer full-time,
0:25:56 > 0:26:00and Chris is one of five brothers, all involved in the building trade.
0:26:00 > 0:26:04So, a pretty good team, and Wendy was eager to get going.
0:26:06 > 0:26:08I love the exterior of the building.
0:26:08 > 0:26:09- Me too! - I love the windows...
0:26:09 > 0:26:13- Me too!- I think there's a big wow factor that could be brought into
0:26:13 > 0:26:17this building. I just fell in love with it.
0:26:17 > 0:26:20With Chris project managing, they wanted to build and sell on
0:26:20 > 0:26:23the eight flats in accordance with the plans.
0:26:23 > 0:26:27They had a budget of 270,000 and a timescale of seven to eight months.
0:26:27 > 0:26:29Well, fast-forward -
0:26:29 > 0:26:33not very fast, to be fair, because it's nearly three years on -
0:26:33 > 0:26:37to see if this former pub will be popping the champagne corks.
0:26:48 > 0:26:52Yes, they have been true to their word and built eight new flats.
0:26:55 > 0:26:57Plans have changed slightly -
0:26:57 > 0:27:01they now have four two-bedroom flats and four one-bedrooms.
0:27:01 > 0:27:05Down on the ground floor, there are four flats - two at the front,
0:27:05 > 0:27:07both of which are one-bedroomed.
0:27:09 > 0:27:13And at the back, two which have two bedrooms.
0:27:13 > 0:27:16All these properties have been built virtually from scratch,
0:27:16 > 0:27:20with a lovely open-plan living aesthetic running through each.
0:27:20 > 0:27:24It's also great to see that they have restored and maintained
0:27:24 > 0:27:28those wonderful windows that really give it that wow factor.
0:27:28 > 0:27:32Up on the first floor, there are a pair of two-bedroom flats.
0:27:39 > 0:27:43And flat number six benefits from a rather lovely roof terrace.
0:27:50 > 0:27:52Up to the previously unused top floor,
0:27:52 > 0:27:56and there are a further two one-bedroom flats.
0:27:56 > 0:27:59They have certainly made the most of the space they had.
0:28:06 > 0:28:08As promised, in the basement,
0:28:08 > 0:28:11they have created storage space for each resident.
0:28:15 > 0:28:18They've also created a gated car park - another winner.
0:28:21 > 0:28:24What was essentially a derelict building that had stood vacant
0:28:24 > 0:28:29for five years is now a beautiful, highly desirable, eight-flat unit
0:28:29 > 0:28:31that's a real triumph.
0:28:32 > 0:28:35With Chris otherwise engaged, we caught up with Wendy
0:28:35 > 0:28:38and husband Tim, who has been helping Chris
0:28:38 > 0:28:40with project management for two years,
0:28:40 > 0:28:43and it's certainly not been plain sailing.
0:28:43 > 0:28:46We completely underestimated the drainage that would need to be
0:28:46 > 0:28:49put into the car park. We just thought the existing drainage
0:28:49 > 0:28:52would be acceptable, but we've had to put in
0:28:52 > 0:28:54a pretty severe drainage solution.
0:28:54 > 0:29:01So there's 36m of 900mm storage pipe under that car park.
0:29:01 > 0:29:03And that cost a lot, and took a lot of time.
0:29:03 > 0:29:07Some of the joists weren't attached when we cleared the building out,
0:29:07 > 0:29:12so there was quite a few things like that which took a lot of time
0:29:12 > 0:29:15before we could actually get onto the renovation itself.
0:29:15 > 0:29:18We had to go back to planning, mainly for some changes
0:29:18 > 0:29:22to the car park - landscaping, for instance, putting in
0:29:22 > 0:29:25a barrier for the car park that we thought was pretty essential.
0:29:25 > 0:29:28Also the way we changed the layout in one of the top-floor flats,
0:29:28 > 0:29:33the smallest flat. I wanted more living space rather than a corridor.
0:29:33 > 0:29:34And in doing that,
0:29:34 > 0:29:38we had to then put in a misting fire-suppression system, and
0:29:38 > 0:29:40we needed to get building control to sign off for that as well.
0:29:41 > 0:29:45Along with the unforeseen structural and drainage issues,
0:29:45 > 0:29:47they also had to replace the whole of the roof,
0:29:47 > 0:29:51all of which contributed to the timescale swelling from eight months
0:29:51 > 0:29:53to the best part of three years.
0:29:54 > 0:30:01All that extra work can't have been good for the £270,000 budget.
0:30:01 > 0:30:06Erm... We've gone over budget by - just for the building -
0:30:06 > 0:30:08by about 200,000.
0:30:09 > 0:30:13Again, there was a lot of things that we had to do
0:30:13 > 0:30:17that we didn't realise we were going to do. The drainage, the flooring,
0:30:17 > 0:30:21things like that - they cost an awful lot of money.
0:30:21 > 0:30:24Time-wise as well, they took a lot of time,
0:30:24 > 0:30:26but they also cost a lot of money.
0:30:26 > 0:30:31But without those things... They were the foundation of the building,
0:30:31 > 0:30:33so they had to be done.
0:30:38 > 0:30:39All and all, then, along with the purchase price,
0:30:39 > 0:30:46they've invested a total of a rather eye-watering £690,000.
0:30:46 > 0:30:49But will two local estate agents think these flats
0:30:49 > 0:30:51are a wise investment?
0:30:52 > 0:30:56I think what they've done with this building is quite amazing.
0:30:56 > 0:31:00They've done way beyond what I expected them to do when I saw this,
0:31:00 > 0:31:02quite a long time ago.
0:31:02 > 0:31:05So, really good finish. I'm very, very impressed.
0:31:05 > 0:31:08I think the flats here are pretty special, really.
0:31:08 > 0:31:12I mean, to take on a building of this sort of age and convert it
0:31:12 > 0:31:14is never an easy thing to do.
0:31:14 > 0:31:17I think the finish is absolutely amazing throughout,
0:31:17 > 0:31:19and I think it's very successfully done.
0:31:19 > 0:31:22The fact that all the flats have got the basement storage area
0:31:22 > 0:31:23is a great bonus.
0:31:23 > 0:31:27The parking, the bicycle area - really well thought out.
0:31:28 > 0:31:30Excellent, agents are impressed.
0:31:30 > 0:31:33But what about those valuations? Will there be a profit?
0:31:35 > 0:31:37Regarding the two-bedroom flats, they're all different,
0:31:37 > 0:31:39and some of them have got outside space,
0:31:39 > 0:31:46so I would put the range somewhere between £165,000 and £190,000.
0:31:46 > 0:31:52The one-bed flats, in the range £125,000-140,000.
0:31:52 > 0:31:55So, I would say, for the two-bedroom apartments in this building,
0:31:55 > 0:32:00that we'd be looking between £170,000,
0:32:00 > 0:32:03up to £195,000 per unit.
0:32:03 > 0:32:05The one-beds, well,
0:32:05 > 0:32:08some of the one-bedroom apartments in the top of the building,
0:32:08 > 0:32:11where we have the lovely views, but they are obviously smaller
0:32:11 > 0:32:13than the one-beds lower down in the building.
0:32:13 > 0:32:18So, the top end of the building, around the £130-140,000 mark.
0:32:18 > 0:32:20And the bigger ones on the ground floor,
0:32:20 > 0:32:23heading up to about the £160,000 mark.
0:32:25 > 0:32:29OK, so some varying prices there, but let's try and take an average.
0:32:29 > 0:32:34If we say the one-bed will, on average, sell for around 140,000,
0:32:34 > 0:32:38and the two-beds will be in the ballpark of £180,000 per unit,
0:32:38 > 0:32:44that would mean a humongous pre-tax profit of £590,000
0:32:44 > 0:32:47for what was just a battered old boozer.
0:32:47 > 0:32:49I think that deserves a drink!
0:32:53 > 0:32:55I'm very happy with the profit that we'll get.
0:32:55 > 0:32:59Obviously, we've still got some fees to come out from the estate agents,
0:32:59 > 0:33:02the solicitors, but, apart from that, yeah,
0:33:02 > 0:33:04I think that's a good day's work.
0:33:10 > 0:33:13Now to Telford, in Shropshire, one of the New Towns.
0:33:13 > 0:33:1713 miles from Shrewsbury, and it's in a popular commuter zone,
0:33:17 > 0:33:20close to the A5 and the M54 to the West Midlands.
0:33:21 > 0:33:25The property I'm here to see is not far from the centre of Telford.
0:33:25 > 0:33:30It's got three bedrooms and a guide price of £65,000 plus,
0:33:30 > 0:33:34and here it is. Before we even go inside, you've got a garage.
0:33:34 > 0:33:36You've got off-street parking,
0:33:36 > 0:33:37and you've got a bit of a garden as well.
0:33:39 > 0:33:42As you can see, like most of the gardens I've been in,
0:33:42 > 0:33:47there is an absence of teddy bears going round and around it.
0:33:47 > 0:33:50OK, so, we're coming in through the back door,
0:33:50 > 0:33:54into a really nice-size hallway.
0:33:54 > 0:33:56Got a little bit of storage,
0:33:56 > 0:34:00and you can actually see where the pictures have been.
0:34:00 > 0:34:04Because that's nicotine stains - somebody's been smoking in here.
0:34:04 > 0:34:05Stairs up to the bedrooms.
0:34:06 > 0:34:10And a really good-size lounge.
0:34:10 > 0:34:12Really big lounge, actually.
0:34:12 > 0:34:15More signs of nicotine staining here.
0:34:15 > 0:34:17Double glazing, though, which is good.
0:34:17 > 0:34:18This is a really good start.
0:34:18 > 0:34:20It does feel as though it's got lots of space in here,
0:34:20 > 0:34:22as soon as you come through the door.
0:34:22 > 0:34:24Here, you've got a little bit of storage.
0:34:24 > 0:34:28And in here, we have got...
0:34:28 > 0:34:29downstairs toilet.
0:34:29 > 0:34:31That being the front door,
0:34:31 > 0:34:34and then into the kitchen-dining area.
0:34:34 > 0:34:37Again, it's really a good size.
0:34:37 > 0:34:40You can get a dining table and chairs just there.
0:34:40 > 0:34:43The kitchen area does look a little bit tired,
0:34:43 > 0:34:46but I think if you were to give this a clean,
0:34:46 > 0:34:48depending on what you want to use this house for,
0:34:48 > 0:34:50you'd get away with keeping this.
0:34:50 > 0:34:52I'm happy. I'm really happy.
0:34:52 > 0:34:54Oh, hold it a minute!
0:34:54 > 0:34:55Central heating as well.
0:34:57 > 0:35:00Thumbs up, only if it's working properly.
0:35:00 > 0:35:04By law, you need a competent and qualified tradesperson to carry out
0:35:04 > 0:35:07checks and repairs to gas and central heating.
0:35:08 > 0:35:10And while you're at it,
0:35:10 > 0:35:12get the electrics checked as well, because...
0:35:12 > 0:35:19# Well, I'd rather be safe than be sorry... #
0:35:21 > 0:35:24Easier to put right are those nicotine stains.
0:35:24 > 0:35:27Painting over them is no guarantee they'll disappear,
0:35:27 > 0:35:31so I suggest a good clean with some sugar soap before decorating.
0:35:33 > 0:35:39Now, I am liking downstairs. Up here, we've got three bedrooms,
0:35:39 > 0:35:41and a family bathroom just here.
0:35:41 > 0:35:44Yes, it's not huge, but it's in OK condition.
0:35:44 > 0:35:47You could easily give that a bit of a clean up and keep it if you were
0:35:47 > 0:35:49looking to rent this place out,
0:35:49 > 0:35:53but it has got a feeling of space, just like downstairs.
0:35:53 > 0:35:54Two bedrooms over here.
0:35:54 > 0:35:56Good-size bedroom there.
0:35:56 > 0:35:57A smaller one to my right,
0:35:57 > 0:36:00but you could get a double bed in either of those,
0:36:00 > 0:36:02and they have both got central heating.
0:36:02 > 0:36:04What have we got here, before I go in there?
0:36:04 > 0:36:10We have got good storage, and into bedroom number three, which, again,
0:36:10 > 0:36:11you could get a double bed in here.
0:36:11 > 0:36:14There is a little bit of
0:36:14 > 0:36:16a fitted wardrobe as well.
0:36:16 > 0:36:17I do like this place,
0:36:17 > 0:36:21and I don't think it would take much to get this place back up to speed.
0:36:27 > 0:36:30But you don't just have to take my word for it.
0:36:30 > 0:36:32We've invited along a property expert from the auction house
0:36:32 > 0:36:34that sold the property.
0:36:36 > 0:36:38My first impression of this property,
0:36:38 > 0:36:40I do feel it needs quite a significant amount of work.
0:36:40 > 0:36:44It is looking at a full redecoration throughout, as well as appliances,
0:36:44 > 0:36:48kitchen, etc. It's a full, top-to-bottom refurbishment.
0:36:48 > 0:36:50If the purchaser did a lower-grade makeover,
0:36:50 > 0:36:52what are the chances of renting out?
0:36:52 > 0:36:55The main appeal of this area is buy-to-let landlords.
0:36:55 > 0:36:57They can get a very good rental yields with the properties
0:36:57 > 0:36:59at the purchase price.
0:36:59 > 0:37:02If selling was the goal after refurbishment, what would it fetch?
0:37:02 > 0:37:04If this property was renovated,
0:37:04 > 0:37:07I would put a price on it of around £85,000.
0:37:07 > 0:37:09And on the rental market?
0:37:09 > 0:37:10Once refurbished,
0:37:10 > 0:37:13this property would rent for £550 per calendar month.
0:37:14 > 0:37:17I can't really find anything wrong with this place.
0:37:17 > 0:37:21Yes, it needs cleaning up, it needs painting, and it needs new carpets.
0:37:21 > 0:37:24Apart from that, you've got a decent-sized kitchen,
0:37:24 > 0:37:28downstairs toilet, upstairs bathroom, three bedrooms,
0:37:28 > 0:37:31off-street parking and - one more -
0:37:31 > 0:37:32you've got a garage as well.
0:37:32 > 0:37:36All for a guide price of £65,000 plus.
0:37:36 > 0:37:38It's a bit of a no-brainer to me.
0:37:38 > 0:37:41Let's go to the auction house, and see who was lucky enough to get it.
0:37:41 > 0:37:43Lot 39, back to Telford.
0:37:43 > 0:37:48Three-bedroom midtown house, with a garage. It does need modernising.
0:37:48 > 0:37:4960 to start me?
0:37:51 > 0:37:5360 bid, thank you. At £60,000.
0:37:53 > 0:37:5462, can I see now?
0:37:54 > 0:37:56At £60,000.
0:37:56 > 0:37:58Looking for 62 now.
0:37:58 > 0:38:0162. 64.
0:38:01 > 0:38:0666. 68. 70?
0:38:06 > 0:38:08At 68,000, my right.
0:38:08 > 0:38:10I'll take one, if it helps.
0:38:10 > 0:38:1169?
0:38:11 > 0:38:1370?
0:38:13 > 0:38:1669,000. My left, then, at £69,000.
0:38:16 > 0:38:1870, anywhere else?
0:38:18 > 0:38:1970, seated.
0:38:19 > 0:38:2171?
0:38:21 > 0:38:23Quick, quick. No?
0:38:23 > 0:38:27At £70,000, the bid seated, no mistake, another one, anywhere else?
0:38:28 > 0:38:34If not, £70,000 once, £70,000 twice, third and final time,
0:38:34 > 0:38:37all done? At £70,000...
0:38:37 > 0:38:39You bought it, sir, well done.
0:38:40 > 0:38:42Although we didn't catch them on camera,
0:38:42 > 0:38:46a successful bid of £70,000 came from Mike.
0:38:46 > 0:38:48He's a Homes Under The Hammer regular,
0:38:48 > 0:38:50along with his wife, Annette.
0:38:50 > 0:38:53Last time they appeared on the show, they bought this flat in Newport.
0:38:53 > 0:38:56- Are you disciplined in the auction house?- Yes, I'm very disciplined.
0:38:56 > 0:39:00I get a list of prices, and then I go, and I never go above the list.
0:39:00 > 0:39:02See, clever. You've got him well-trained, you have?
0:39:02 > 0:39:03- Yes.- I like that.
0:39:03 > 0:39:05Well, I give him the list, you see.
0:39:08 > 0:39:11This time, Annette's list featured this property,
0:39:11 > 0:39:13which she lined up for her son, Lewis.
0:39:13 > 0:39:15He's following in his mum's footsteps.
0:39:17 > 0:39:18Annette, good to see you again.
0:39:18 > 0:39:20- And you. - And Lewis, nice to see you.
0:39:20 > 0:39:23Congratulations, yet again.
0:39:23 > 0:39:25What was it about this property that attracted you in, then?
0:39:25 > 0:39:29Well, I think what we liked about this property is that we don't think
0:39:29 > 0:39:30there's too much work to do here.
0:39:30 > 0:39:33Clean the walls and then paint them, put some new carpets down.
0:39:33 > 0:39:36Isn't it amazing how a bit of nicotine
0:39:36 > 0:39:39can change the whole look of a property?
0:39:39 > 0:39:41- Yeah.- And you can see where the pictures have been!
0:39:41 > 0:39:44Actually, you could just leave it, and call it magnolia.
0:39:44 > 0:39:45DION LAUGHS
0:39:45 > 0:39:48Who's going to do all the work with you?
0:39:48 > 0:39:49We're going to do the work ourselves,
0:39:49 > 0:39:52so I'll be doing it in the evenings and the weekends.
0:39:52 > 0:39:56And my mum will help as well, and my mum's husband, Mike,
0:39:56 > 0:39:59will be helping as well with the plumbing, especially.
0:39:59 > 0:40:02- That's his speciality. - Who actually found this property?
0:40:02 > 0:40:04Well, I suppose I found it.
0:40:04 > 0:40:07I always check the auction catalogues for this area,
0:40:07 > 0:40:11and I saw this one, and it seemed to be a good, solid house.
0:40:11 > 0:40:15It's got its own parking space and a garage, which is what we like.
0:40:15 > 0:40:19We think that a three-bedroom house like this is going to be appealing
0:40:19 > 0:40:21to families, and they're going to want the parking space
0:40:21 > 0:40:23near to the house, and this house has got that.
0:40:23 > 0:40:27And we thought that houses in this area often go for
0:40:27 > 0:40:29quite a good price, so we thought we'd give it a go.
0:40:29 > 0:40:32It does seem quite a solid house, doesn't it?
0:40:32 > 0:40:34- Yeah.- It's very good. - I like houses from the '70s,
0:40:34 > 0:40:37because it's when they had worked out how to stop them getting
0:40:37 > 0:40:40too much damp, and they'd insulated them, so they're nice and warm,
0:40:40 > 0:40:42and comfortable houses to live in.
0:40:42 > 0:40:44So where are you going to start, Annette?
0:40:44 > 0:40:45Where are you starting on this one?
0:40:45 > 0:40:48Well, I will let Lewis start on this one.
0:40:48 > 0:40:51I did say I wasn't going to do any more, so...
0:40:51 > 0:40:52Good to see you again!
0:40:52 > 0:40:56And I think that everything here is well within his capabilities,
0:40:56 > 0:41:02so I might come occasionally and do a bit of cleaning for him,
0:41:02 > 0:41:04and certainly the painting, probably.
0:41:04 > 0:41:07So how does this working relationship work, then?
0:41:07 > 0:41:11I usually find the houses, and then I suggest the house to my mum.
0:41:11 > 0:41:13I like to get her seal of approval, I wouldn't want to
0:41:13 > 0:41:16go and buy a house that she didn't think was a good house,
0:41:16 > 0:41:18because if I did that, she wouldn't help me,
0:41:18 > 0:41:19and Mike wouldn't help me.
0:41:19 > 0:41:22Well, you know...
0:41:22 > 0:41:25The viewing is usually during the week,
0:41:25 > 0:41:27so usually Mike and I go and do the viewings.
0:41:27 > 0:41:31- Because I'm at work.- We did view, probably ten, I suppose,
0:41:31 > 0:41:32in that auction.
0:41:32 > 0:41:35And I bring the catalogue with me,
0:41:35 > 0:41:38and when we viewed this one, I put a little marker in the catalogue.
0:41:38 > 0:41:41This one, I put three stars, and wrote "very good".
0:41:43 > 0:41:47That was because it had the things I require, or like,
0:41:47 > 0:41:49which is a downstairs toilet - I think that's really a bonus.
0:41:49 > 0:41:52- I agree. - Somewhere to park your car,
0:41:52 > 0:41:55and space in the kitchen to sit and eat your meal.
0:41:55 > 0:41:58Yeah, there is enough space in here, you could put a dining table
0:41:58 > 0:41:59in here, and chairs and stuff.
0:41:59 > 0:42:02So, that's probably why I've put "very good".
0:42:02 > 0:42:05It falls within your parameters. Now, where are you going to start?
0:42:05 > 0:42:07Tell me the first thing you're going to do.
0:42:07 > 0:42:09The first thing I'm going to do is clean the kitchen,
0:42:09 > 0:42:11because it's in a filthy state.
0:42:11 > 0:42:13Give it a really, really good clean.
0:42:13 > 0:42:17Then I'll clean the nicotine off the walls,
0:42:17 > 0:42:19and then start painting the walls.
0:42:19 > 0:42:22- I'll sand the skirtings down. - Mm-hm.- With a house like this,
0:42:22 > 0:42:25cleaning it is probably the most important thing.
0:42:25 > 0:42:28And then, after that, it should be ready to decorate.
0:42:28 > 0:42:30And who's going to do the decorating?
0:42:30 > 0:42:32Are you going to do the cleaning on your own, or...?
0:42:32 > 0:42:36Yeah, I think my mum and I will both do a bit of the decorating.
0:42:36 > 0:42:39The first job you've got to do is get the central heating working,
0:42:39 > 0:42:40- that's the very first job. - Mm-hm.
0:42:40 > 0:42:43Make sure it's working, and leaks on the radiators.
0:42:43 > 0:42:44You don't want to paint your walls,
0:42:44 > 0:42:48and then you've got your radiators leaking on them.
0:42:48 > 0:42:50So you start with the checks first.
0:42:50 > 0:42:54How long is it going to take the three of you to turn this round?
0:42:54 > 0:42:57We think it's going to take about two months, because
0:42:57 > 0:43:01we are just working evenings and weekends, so it takes a lot longer.
0:43:01 > 0:43:03So, apart from the nicotine,
0:43:03 > 0:43:06have you noticed anything else that really needs to be done?
0:43:06 > 0:43:07Well, the boiler does seem to be quite old.
0:43:07 > 0:43:12There's a date on it of 2001, so that's quite old for a boiler.
0:43:12 > 0:43:15So we will get that working, or hopefully get it working,
0:43:15 > 0:43:18and then decide if we think it needs a new boiler.
0:43:18 > 0:43:19But we're hoping to keep it.
0:43:19 > 0:43:21So what's the budget?
0:43:21 > 0:43:25The budget will be about £2,000 for the decorating,
0:43:25 > 0:43:28carpets, flooring, fencing, that sort of thing.
0:43:28 > 0:43:31If we have to add a new boiler, that would be money on top.
0:43:31 > 0:43:36- How much will that be on top of the budget?- About 1,700-2,000.
0:43:36 > 0:43:39What are you going to do with it when it's all finished and complete?
0:43:39 > 0:43:40I'm going to rent it out.
0:43:40 > 0:43:42Is this going on your portfolio?
0:43:42 > 0:43:44- It is, yeah. - Good man.
0:43:44 > 0:43:45Right way to go, sir.
0:43:45 > 0:43:47- Annette, good to see you again. - And you, thank you.
0:43:47 > 0:43:49- And good luck. Good luck to you, Lewis.- Thank you.
0:43:50 > 0:43:53So, Lewis has got another property to add to his portfolio,
0:43:53 > 0:43:55and I think it's a bit of a beauty.
0:43:55 > 0:43:58There's hardly anything that needs to be done here.
0:43:58 > 0:44:00If he takes his mum's advice, I think he'll be OK.
0:44:00 > 0:44:03When we come back, I think this place will be spot on.
0:44:03 > 0:44:06You can find out how they get on later in the programme.
0:44:10 > 0:44:11So, don't go anywhere,
0:44:11 > 0:44:13we've still got another two properties to show you.
0:44:13 > 0:44:17Yes, will the champagne corks be popping, or will they be lacking
0:44:17 > 0:44:19- a bit of sparkle? - I think we should find out.
0:44:22 > 0:44:25For our next stop, we're heading back to North Birmingham,
0:44:25 > 0:44:27and this three-bed 1930s semi,
0:44:27 > 0:44:30which went under the hammer for a tempting guide price of between
0:44:30 > 0:44:33110,000 and 115,000,
0:44:33 > 0:44:37and it didn't take long to figure out why.
0:44:37 > 0:44:42# Please forgive us if we're cracking up... #
0:44:42 > 0:44:45As you can see, there are a few signs of cracks.
0:44:45 > 0:44:48There's no getting away from the fact that that is an issue
0:44:48 > 0:44:50that needs to be resolved.
0:44:50 > 0:44:53Signs of movement weren't the only drawback.
0:44:53 > 0:44:57A classic design flaw of these kind of era of houses -
0:44:57 > 0:45:01a kitchen which is way too small for the size of the house.
0:45:02 > 0:45:06Would lack of space and worrying cracks put off a potential buyer?
0:45:06 > 0:45:08Not on this show.
0:45:10 > 0:45:14It was Inderpal who, together with his friends, Gurinder and Kurinder,
0:45:14 > 0:45:18bought this house for £176,000.
0:45:18 > 0:45:21And they had big plans.
0:45:21 > 0:45:23We are thinking side extension,
0:45:23 > 0:45:25and a rear extension and side double-storey.
0:45:25 > 0:45:28And if we will get the planning permission, then it's a five-bed.
0:45:28 > 0:45:30If we will not get the rear double-storey,
0:45:30 > 0:45:33then the plan is to make a four-bed.
0:45:33 > 0:45:37London-based Inderpal was leaving the building work to Gurinder,
0:45:37 > 0:45:40and he estimated it would take no longer than 20 weeks,
0:45:40 > 0:45:43with a spend of 60,000.
0:45:47 > 0:45:51Well, it's been eight months since our first visit, and, my goodness,
0:45:51 > 0:45:52things have changed.
0:46:01 > 0:46:04Encountering no problems with planning permission,
0:46:04 > 0:46:08the house has been extended, both to the side and to the back.
0:46:08 > 0:46:12All that extra space has allowed for a transformation inside.
0:46:12 > 0:46:14Remember that modest kitchen?
0:46:17 > 0:46:20Ha! Not so modest now.
0:46:20 > 0:46:25There's in an extra 4.2m to the back, and 3m to the side.
0:46:25 > 0:46:30That is a lot of kitchen, and as the side extension is double-storey,
0:46:30 > 0:46:33this has allowed Inderpal to make two extra bedrooms upstairs.
0:46:35 > 0:46:40There are now five bedrooms in total, and no shortage of bathrooms.
0:46:40 > 0:46:44The original has had a smart makeover, making full use of
0:46:44 > 0:46:47the extra metre that has been added to the first floor.
0:46:47 > 0:46:50Inderpal has added two shower rooms,
0:46:50 > 0:46:54one upstairs and one on the ground floor.
0:46:54 > 0:46:59However, extending sideways created problems for the build, as erecting
0:46:59 > 0:47:03scaffolding was hindered by a lack of access at the side of the house.
0:47:03 > 0:47:06It was very hard to make the side double-storey.
0:47:06 > 0:47:09We are doing four, five courses at the one time,
0:47:09 > 0:47:12then we do the pointing, then we left our bandstands up.
0:47:12 > 0:47:16Then we make another four or five courses.
0:47:16 > 0:47:19The bandstand Inderpal refers to isn't somewhere where
0:47:19 > 0:47:22the local brass band would play, but a builders' term for a trestle
0:47:22 > 0:47:24you can put scaffolding board on.
0:47:26 > 0:47:28This time-consuming process,
0:47:28 > 0:47:31where they were effectively building from inside the new structure,
0:47:31 > 0:47:34meant extra hands were needed to keep on schedule.
0:47:35 > 0:47:38What we were thinking before was 16-20 weeks, right?
0:47:38 > 0:47:42And we finished the job before that, because we got extra staff.
0:47:42 > 0:47:46He didn't start any other job, he's concentrate on one job,
0:47:46 > 0:47:47so that's why he finished it quicker then.
0:47:50 > 0:47:53Inderpal managed the project from London,
0:47:53 > 0:47:56but it was builder Gurinder who did the hard graft.
0:47:56 > 0:48:00# Work, work, work. #
0:48:00 > 0:48:03He's the main man who did all the construction work, right?
0:48:03 > 0:48:08My role is only in this property to discuss a few things with me
0:48:08 > 0:48:12on the phone, right? The rest of the work, he did it, everything.
0:48:13 > 0:48:17One of Gurinder's many tasks was to sort the numerous cracks
0:48:17 > 0:48:21- at the rear of the house. - The cracks is only minor cracks,
0:48:21 > 0:48:23only on top of the plaster, right?
0:48:23 > 0:48:27We take off all the plaster, and after that we board the mesh,
0:48:27 > 0:48:30and we re-plaster it to fill the crack.
0:48:30 > 0:48:32So we did that.
0:48:33 > 0:48:37This has been a comprehensive refurbishment, but the original
0:48:37 > 0:48:42£65,000 budget couldn't keep pace with their ambitious plans.
0:48:42 > 0:48:45We are thinking before it is a small kitchen, and after that we had to
0:48:45 > 0:48:48add a little extra amount onto the kitchen because it's
0:48:48 > 0:48:51a big kitchen now. And before we are thinking two bathroom,
0:48:51 > 0:48:53and now we make it three bathroom.
0:48:53 > 0:48:56So we spend nearly £85,000 on this one.
0:48:58 > 0:49:00Despite being 25 grand over budget,
0:49:00 > 0:49:04Inderpal and Gurinder are pleased as punch with the finished project.
0:49:05 > 0:49:08But what will two local property experts think?
0:49:09 > 0:49:12It's a very impressive property. Obviously, there has been
0:49:12 > 0:49:15a considerable amount of extensions that have taken place here.
0:49:15 > 0:49:20The layout, with four double bedrooms and a single fifth bedroom,
0:49:20 > 0:49:24and three bathrooms or toilet facilities, is great for a family,
0:49:24 > 0:49:27and they will welcome the space that it has.
0:49:27 > 0:49:31Selling features of the property - it's now got good off-road parking.
0:49:31 > 0:49:34It's got very good accommodation downstairs,
0:49:34 > 0:49:36but I do think en-suite bathrooms would have helped.
0:49:38 > 0:49:40Will the layout niggles affect valuations?
0:49:40 > 0:49:45Inderpal and his partners have spent a total of £261,000,
0:49:45 > 0:49:49and are looking to put this house in the resale market.
0:49:49 > 0:49:53I would think it's likely value would be in the range of
0:49:53 > 0:49:55£350-370,000.
0:49:55 > 0:49:58I think the property could sell somewhere between
0:49:58 > 0:50:00325,000 and £350,000.
0:50:01 > 0:50:04325 is very low.
0:50:04 > 0:50:11370 is OK, because we have another two private buyers,
0:50:11 > 0:50:13they are looking to buy a property, right?
0:50:13 > 0:50:15And they are happy to buy at 375.
0:50:17 > 0:50:21If Inderpal manages to sell for 375,000, that would net
0:50:21 > 0:50:26the partnership a profit of 114,000, before fees and taxes.
0:50:28 > 0:50:32The agents both agreed that a likely rental figure could be
0:50:32 > 0:50:34as high as £1,200 per calendar month,
0:50:34 > 0:50:38which would give Inderpal a yield of 5.5%,
0:50:38 > 0:50:42but the plan is to cash in the equity and start another project.
0:50:42 > 0:50:45It's our aim to sell this property and buy another one
0:50:45 > 0:50:47and come again back onto your show as well.
0:50:49 > 0:50:53Well, we look forward to seeing you guys sometime in the future.
0:51:00 > 0:51:04We're back in Telford, where earlier I visited this three-bed terrace,
0:51:04 > 0:51:08up for sale at auction with a guide price of £65,000 plus.
0:51:10 > 0:51:13From the outside, it looked pretty promising.
0:51:13 > 0:51:16You've got a garage, you've got off-street parking,
0:51:16 > 0:51:18and you've got a bit of a garden as well.
0:51:20 > 0:51:22Inside, it didn't disappoint,
0:51:22 > 0:51:24with good-sized rooms and central heating.
0:51:24 > 0:51:28I reckon it wouldn't take much cash to get this place up to scratch.
0:51:31 > 0:51:35The only downside was the state of the walls and ceilings.
0:51:35 > 0:51:39You can actually see where the pictures have been.
0:51:39 > 0:51:42Most houses are decorated with wallpaper or paint,
0:51:42 > 0:51:45but this layer of nicotine stains was very unappealing.
0:51:45 > 0:51:50# Golden brown Texture like sun... #
0:51:50 > 0:51:55It was purchased by Annette and her son Lewis for £70,000.
0:51:55 > 0:51:58And it's no surprise what they thought the biggest job would be.
0:52:00 > 0:52:01With a house like this,
0:52:01 > 0:52:04cleaning it is probably the most important thing.
0:52:04 > 0:52:07And then, after that, it should be ready to decorate.
0:52:10 > 0:52:14In a hurry to get this property ready for the Telford rental market,
0:52:14 > 0:52:17Lewis and Annette set themselves a deadline of two months,
0:52:17 > 0:52:21and if all went smoothly, aim to spend no more than two grand.
0:52:25 > 0:52:30We've come back ten weeks later to see how they've got on.
0:52:30 > 0:52:33# But I'm clean, yeah
0:52:33 > 0:52:37# Friends with Mr Sheen, yeah
0:52:37 > 0:52:42# Don't have to wean myself off of nothing
0:52:42 > 0:52:48# Two minutes' clean, and that's not very often, stroll on. #
0:52:48 > 0:52:51From nicotine-stained to bright white -
0:52:51 > 0:52:54the house certainly looks much more presentable.
0:52:54 > 0:52:57It's amazing how much bigger a property feels when it's been given
0:52:57 > 0:53:00a good clean and a coat of fresh paint.
0:53:00 > 0:53:04New carpets throughout add the perfect finishing touch,
0:53:04 > 0:53:07but it's cleaning that's taken up most of Lewis's time.
0:53:07 > 0:53:08To get rid of that nicotine,
0:53:08 > 0:53:12he had to wash the walls with a solution based on sugar soap,
0:53:12 > 0:53:13and a gallon of elbow grease.
0:53:15 > 0:53:17I had to do that at least two times,
0:53:17 > 0:53:19because the water started to go an orange colour.
0:53:19 > 0:53:22So I did it once, and then with clean water, did it a second time.
0:53:22 > 0:53:26Then we painted the walls, using a good-quality white emulsion.
0:53:26 > 0:53:28It's taken quite a few coats.
0:53:28 > 0:53:31Then had to clean the units, inside and out,
0:53:31 > 0:53:34and then I replaced the kitchen unit handles with these modern ones
0:53:34 > 0:53:37to give it a more modern feel. So it's taken me a lot of effort
0:53:37 > 0:53:39to clean these kitchen units up,
0:53:39 > 0:53:41but I think they look really good in the end.
0:53:41 > 0:53:44I'm really pleased with how it's turned out.
0:53:44 > 0:53:45And so you should be,
0:53:45 > 0:53:47but just remember to read the manufacturer's instructions
0:53:47 > 0:53:50when using cleaning products.
0:53:50 > 0:53:52Lewis has done the lion's share of the work,
0:53:52 > 0:53:55but mum Annette has been on hand to help,
0:53:55 > 0:53:58although there has been some family friction.
0:53:58 > 0:54:02We argue about the order that you do the painting.
0:54:02 > 0:54:04When you paint the gloss on the skirtings,
0:54:04 > 0:54:05the order that that should be done.
0:54:05 > 0:54:09It's minor stuff. The end result looks pretty much the same.
0:54:09 > 0:54:11I'd done the painting in one room,
0:54:11 > 0:54:13and then I come back the next day and he'd put the second coat on
0:54:13 > 0:54:16or something like that, and I didn't like that at all!
0:54:16 > 0:54:19So I thought, "Right, I'm not doing any more!"
0:54:19 > 0:54:22So I went outside, then. Worked outside.
0:54:23 > 0:54:25And thanks to Annette's efforts,
0:54:25 > 0:54:28the garden has undergone a bit of a chocolate-coloured makeover.
0:54:28 > 0:54:31- # Choco choco- Clap clap - # Choco choco- Clap clap
0:54:31 > 0:54:35- # Everybody say it - chocolate! - Here we go! #
0:54:35 > 0:54:40I painted the fence a nice sort of dark brown.
0:54:40 > 0:54:43And then I got some masonry paint mixed,
0:54:43 > 0:54:45and I painted the paving slabs
0:54:45 > 0:54:48with chocolate-looking paint. It's lovely!
0:54:48 > 0:54:51So, after that, I wanted to paint all the slabs chocolate,
0:54:51 > 0:54:53- but Lewis wouldn't let me! - Wouldn't allow it, no.
0:54:55 > 0:54:57Well, exterior paint is expensive,
0:54:57 > 0:55:00and Lewis had his eye firmly fixed on the budget.
0:55:00 > 0:55:02One unknown cost for this project
0:55:02 > 0:55:04was the boiler and the central heating system.
0:55:06 > 0:55:09Well, when we bought the house, the boiler had been turned off,
0:55:09 > 0:55:12so obviously, we didn't know if it was going to work or not.
0:55:12 > 0:55:15But when we got the gas turned on, the boiler worked first time.
0:55:15 > 0:55:17We've had no problems with it at all, so that's good news.
0:55:17 > 0:55:19I've just given it a good clean.
0:55:21 > 0:55:22With one big expense spared,
0:55:22 > 0:55:25did that help them keep within that two grand budget?
0:55:26 > 0:55:29It's ended up costing us £3,100,
0:55:29 > 0:55:31which is a bit more than we originally thought,
0:55:31 > 0:55:35but we haven't really spent any money that...
0:55:35 > 0:55:37We haven't splashed out on anything in particular.
0:55:37 > 0:55:39- Only on too much sugar soap. - Mm.
0:55:41 > 0:55:44With the work completed just one week over the two-month deadline,
0:55:44 > 0:55:48the property is ready for a tenant to move into immediately.
0:55:50 > 0:55:53But first, we've asked two local property agents to pop over
0:55:53 > 0:55:56to hear what they think of the work that's been done.
0:55:56 > 0:55:59I think the changes to the property are very positive.
0:55:59 > 0:56:02They've done it to a good level for rental purposes, and for resale.
0:56:02 > 0:56:04I think they couldn't have done any better with it.
0:56:04 > 0:56:06The standard of finish, I would say, is average,
0:56:06 > 0:56:11but, for this sort of property, I think it's perfectly fine.
0:56:11 > 0:56:13General makeover and tarting up,
0:56:13 > 0:56:16which is perfect either for resale or for letting purposes.
0:56:17 > 0:56:20Hmm. Mixed opinions about the standard of finish
0:56:20 > 0:56:24but both agree that this could be an ideal rental property.
0:56:24 > 0:56:27How much do they think Lewis could make in rental income?
0:56:27 > 0:56:31I would say this property would rent for around £525 per calendar month.
0:56:31 > 0:56:35However, I do feel you might be able to try about 550 per calendar month.
0:56:35 > 0:56:37If this was to go on the rental market,
0:56:37 > 0:56:41I would suggest a rental value of £550 per calendar month.
0:56:42 > 0:56:48With a total spend of £73,100, a monthly income of £550
0:56:48 > 0:56:52would mean a return on investment of just over 9%.
0:56:52 > 0:56:55We hopefully have a tenant moving in fairly soon,
0:56:55 > 0:56:59and they are going to pay about 575 a month rent,
0:56:59 > 0:57:03so we will be meeting with them shortly to iron out the details.
0:57:05 > 0:57:07With a tenant almost ready to move in,
0:57:07 > 0:57:10Lewis hopes to have a long-term rental future for this property,
0:57:10 > 0:57:14but have the improvements increased the house's resale value?
0:57:14 > 0:57:18If this was to go and the open market, I would be suggesting to
0:57:18 > 0:57:22our vendors to accept an offer of around the £80,000 mark.
0:57:22 > 0:57:24I think the property would sell for around £85,000.
0:57:24 > 0:57:27I would suggest a marketing price of £90,000.
0:57:27 > 0:57:29I think those resale figures are OK.
0:57:29 > 0:57:33I think we'd definitely want the 85, and not the 80.
0:57:33 > 0:57:38I have seen houses like this on the market for 90-85,
0:57:38 > 0:57:40so I think I would want 85 for this.
0:57:42 > 0:57:46Achieving a sale of 85 grand would generate a pre-tax profit of
0:57:46 > 0:57:50just under 12 grand, but selling isn't on the agenda for now.
0:57:50 > 0:57:55My plans for the future are to work on the next house which I bought,
0:57:55 > 0:57:56which is also in Telford.
0:57:56 > 0:57:59So I'll be starting on that on Monday, after the weekend.
0:57:59 > 0:58:00Having the weekend off.
0:58:00 > 0:58:02That will probably take about three months,
0:58:02 > 0:58:04because it needs a lot more work than this house.
0:58:04 > 0:58:08And hopefully will go OK, and I'll try and buy another one after that.
0:58:12 > 0:58:15Well, there you go - property developing is not always easy.
0:58:15 > 0:58:18The challenges can be many and varied.
0:58:18 > 0:58:21Yeah, but there are rewards to be had - if you get it right, that is.
0:58:21 > 0:58:25Yep, so make sure you join us next time for more thrills and spills
0:58:25 > 0:58:27- from the auction room. - ALL: Goodbye.