0:00:02 > 0:00:03Hello. There's a whole range of different types
0:00:03 > 0:00:06of renovation project, and a whole different way
0:00:06 > 0:00:07of going about it as well.
0:00:07 > 0:00:09Yes, you may want to find the plot of land to build your
0:00:09 > 0:00:11forever dream home on,
0:00:11 > 0:00:13or maybe just a property
0:00:13 > 0:00:15you could have a quick turnaround, a lick of paint, that kind of stuff.
0:00:15 > 0:00:18Yes, we've seen them all here on this show.
0:00:18 > 0:00:19But they've all got one thing in common -
0:00:19 > 0:00:21they were all bought under the hammer.
0:00:47 > 0:00:50A packed auction house can have a very tense atmosphere.
0:00:50 > 0:00:53Nobody knows what's going to happen next and what properties are going to go for.
0:00:53 > 0:00:55Ah, yeah, but that's what makes it so exciting, Dion.
0:00:55 > 0:00:59And, believe me, auctions are not for the faint-hearted.
0:00:59 > 0:01:01No, you have to keep your head,
0:01:01 > 0:01:05when often those around you are losing theirs.
0:01:05 > 0:01:08Here's what the three people bought on today's show.
0:01:09 > 0:01:11First up, in Walsall, West Midlands,
0:01:11 > 0:01:13we don't get off to the best start.
0:01:13 > 0:01:15What made you buy this particular property, then?
0:01:15 > 0:01:16That's a good question, Dion.
0:01:16 > 0:01:19- DION LAUGHS - Getting desperate.
0:01:19 > 0:01:23In Tunbridge Wells, Kent, Lucy's not happy with what she's found.
0:01:24 > 0:01:28Look at that! That would petrify me.
0:01:29 > 0:01:31And in Hinckley, Leicestershire,
0:01:31 > 0:01:34Mohammed is walking thin ice with me.
0:01:34 > 0:01:36The population's getting older.
0:01:36 > 0:01:39Why did you point at me like that when you said that?
0:01:40 > 0:01:43All these properties have been sold at auction, and we'll find out
0:01:43 > 0:01:47who bought them and what they paid when they went under the hammer.
0:01:47 > 0:01:49You've got it.
0:01:54 > 0:01:58Walsall, in the West Midlands, is a large industrial town that's located
0:01:58 > 0:02:02just eight miles outside Birmingham and six miles from Wolverhampton.
0:02:04 > 0:02:08So on this very lively residential street is the property
0:02:08 > 0:02:09I'm here to see.
0:02:09 > 0:02:11And here it is. It's an end terrace,
0:02:11 > 0:02:16it has three bedrooms and a guide price of £44,000-£49,000.
0:02:16 > 0:02:19Let's get inside and take a look.
0:02:19 > 0:02:22Space for a bit of off-road parking, too.
0:02:24 > 0:02:25Right, let's get in.
0:02:25 > 0:02:27And what have we got?
0:02:27 > 0:02:29This is a shutter door.
0:02:29 > 0:02:31On the other side of this there's a keypad.
0:02:31 > 0:02:35I would imagine this has been put on for security
0:02:35 > 0:02:38as this place may have been empty for some time.
0:02:38 > 0:02:40Stairs going up to the bedrooms just there.
0:02:40 > 0:02:43Into the lounge, living room area.
0:02:43 > 0:02:46As soon as I come in I can see this is the front door
0:02:46 > 0:02:50and the back door in the living room. Nice big window there.
0:02:50 > 0:02:53Textured ceilings, I'd want to get rid of those,
0:02:53 > 0:02:54textured wallpaper as well,
0:02:54 > 0:02:57but you have got central heating, which is good news.
0:02:57 > 0:02:59Here we've got, at the back,
0:02:59 > 0:03:03we've got the kitchen and opposite you've got the bathroom as well.
0:03:03 > 0:03:06That area seems incredibly dark.
0:03:06 > 0:03:09The reason being there's shutters on the windows as well.
0:03:09 > 0:03:11It does seem quite shallow, the house.
0:03:11 > 0:03:12You come through the front door,
0:03:12 > 0:03:14you've got the living and lounge area
0:03:14 > 0:03:17and then you sort of end up at the back door just there.
0:03:17 > 0:03:19So it seems a little bit shallow.
0:03:19 > 0:03:22And here we've got a little bit of storage as well.
0:03:22 > 0:03:23So not bad,
0:03:23 > 0:03:26not a bad start. I do like this room, I've got to say.
0:03:26 > 0:03:28I hope I can find something upstairs that I like as well.
0:03:28 > 0:03:31Let's have a look.
0:03:31 > 0:03:34It's not always ideal to have a bathroom on the ground floor,
0:03:34 > 0:03:37and this kitchen isn't exactly spacious.
0:03:37 > 0:03:39So, plenty to do,
0:03:39 > 0:03:41but in a property such as this, it is equally important
0:03:41 > 0:03:45to keep an eye on your budget and don't overspend.
0:03:46 > 0:03:49OK, upstairs to the bedrooms.
0:03:49 > 0:03:51And what have we got up here?
0:03:51 > 0:03:54OK, I did mention that there was central heating.
0:03:54 > 0:03:59There are two radiators on the walls here but there's no piping,
0:03:59 > 0:04:03and I can see there's a cupboard specially built for the boiler,
0:04:03 > 0:04:04but there's no boiler.
0:04:04 > 0:04:08Into the main bedroom, which is not a bad size at all
0:04:08 > 0:04:11and doesn't look in bad condition either.
0:04:11 > 0:04:14And you also get this area as well,
0:04:14 > 0:04:18and it goes round the corner as well, as you can see.
0:04:18 > 0:04:19It doesn't go too far,
0:04:19 > 0:04:22but it's a usable space for maybe
0:04:22 > 0:04:26a dressing room or an en-suite,
0:04:26 > 0:04:29but it's some more additional space.
0:04:29 > 0:04:32Needs a bit of work upstairs...
0:04:32 > 0:04:33but I don't mind it.
0:04:36 > 0:04:39# How could you do this?
0:04:41 > 0:04:45# How could you do this to me?
0:04:45 > 0:04:47# How could you do it to me, baby...? #
0:04:47 > 0:04:51Unfortunately, when properties are left empty,
0:04:51 > 0:04:53it can attract opportunists.
0:04:53 > 0:04:56In this case, not only have they stolen the boiler,
0:04:56 > 0:04:59but they've also lifted the floorboards
0:04:59 > 0:05:01and nicked the copper piping.
0:05:01 > 0:05:04All of this means whoever buys this property will face
0:05:04 > 0:05:07the expense of reinstalling central heating.
0:05:07 > 0:05:09Ouch.
0:05:09 > 0:05:10Wow.
0:05:10 > 0:05:14Now, in the house I said that it was very short and very squat
0:05:14 > 0:05:18and you get from the front door to the back door very, very quickly.
0:05:18 > 0:05:21But look at the space out the back!
0:05:21 > 0:05:23I'm thinking to myself, straightaway, I'm thinking,
0:05:23 > 0:05:27can you actually bring that house just a little bit further out,
0:05:27 > 0:05:30give you some more inside space?
0:05:31 > 0:05:34Saying that, there's probably a ceiling price within the area
0:05:34 > 0:05:37and it probably wouldn't work for the figures, I would say.
0:05:37 > 0:05:39Here's the shutters that were on the windows,
0:05:39 > 0:05:42that's the kitchen just on the other side there,
0:05:42 > 0:05:44get them off the back there.
0:05:44 > 0:05:46But the size of this back garden,
0:05:46 > 0:05:48get rid of all this rubble, tidy it up,
0:05:48 > 0:05:51I think you'd have a really nice back garden.
0:05:51 > 0:05:53And while you're at it,
0:05:53 > 0:05:55stick the back door on and the front door on
0:05:55 > 0:05:59and I think you could be on to a winner.
0:05:59 > 0:06:03Yes, your hands are tied with the ceiling price in this area,
0:06:03 > 0:06:06but it just means you're going to have to work with what you've got.
0:06:06 > 0:06:09Remember, this property has a relatively low guide price
0:06:09 > 0:06:11of 44-49 grand.
0:06:13 > 0:06:15Time to hear what a local estate agent thinks of this place
0:06:15 > 0:06:18and what could be done.
0:06:18 > 0:06:22I would definitely think it's going to appeal to a buy-to-let investor
0:06:22 > 0:06:24who would look to hopefully get back the kind of return
0:06:24 > 0:06:26they'd be looking for.
0:06:26 > 0:06:29It needs quite an extensive amount of work carrying out here.
0:06:29 > 0:06:31It would need gas central heating,
0:06:31 > 0:06:33it would need the windows looking at,
0:06:33 > 0:06:36possibly refurbishing of the kitchen,
0:06:36 > 0:06:40maybe thinking about considering moving the bathroom back upstairs.
0:06:40 > 0:06:43However, it really comes down to what the purchaser
0:06:43 > 0:06:45is looking to get as a return.
0:06:45 > 0:06:49If the purchaser was looking to do a standard refurb on this property,
0:06:49 > 0:06:54I would look at anything between £5,000, maybe up to £7,500
0:06:54 > 0:06:59to get it back to a good, presentable condition.
0:06:59 > 0:07:02So what kind of values does she think the property could be worth
0:07:02 > 0:07:04once the work is done?
0:07:04 > 0:07:06Once renovated, I would think that this property would look
0:07:06 > 0:07:10to achieve at least £95,000.
0:07:10 > 0:07:12And how about the rental?
0:07:12 > 0:07:15I would look to achieve a rental figure
0:07:15 > 0:07:17of £575 per calendar month.
0:07:19 > 0:07:22As you can hear, this is a very noisy and lively neighbourhood.
0:07:22 > 0:07:25That's one thing the auction catalogue won't tell you.
0:07:25 > 0:07:29That's why we always say, "View the property first."
0:07:29 > 0:07:30Saying that,
0:07:30 > 0:07:32it's not a bad house at all.
0:07:32 > 0:07:36But, for me, the selling point is this beautiful,
0:07:36 > 0:07:38potentially beautiful, back garden.
0:07:38 > 0:07:41Let's find out who bought it when it went under the hammer.
0:07:47 > 0:07:48This next lot is a three-bedroom,
0:07:48 > 0:07:50freehold end-terrace house,
0:07:50 > 0:07:53which we're offering with vacant possession.
0:07:53 > 0:07:55Where shall we start?
0:07:56 > 0:07:59At £30,000 out on my left.
0:07:59 > 0:08:01Do I have 40 anywhere? Thank you, sir.
0:08:01 > 0:08:03And what a buy this will be.
0:08:03 > 0:08:05At £40,000 I'm bid.
0:08:06 > 0:08:0841, if we must.
0:08:08 > 0:08:0942, sir, if we're quick.
0:08:09 > 0:08:1143.
0:08:11 > 0:08:1244 on my right.
0:08:12 > 0:08:1445.
0:08:14 > 0:08:1546. 47.
0:08:15 > 0:08:1748. 49.
0:08:19 > 0:08:2150. 51.
0:08:22 > 0:08:2452. 53.
0:08:24 > 0:08:2654. 55.
0:08:28 > 0:08:2956.
0:08:29 > 0:08:3057.
0:08:32 > 0:08:3458. 59.
0:08:34 > 0:08:3660.
0:08:36 > 0:08:3761.
0:08:37 > 0:08:38No.
0:08:38 > 0:08:41A great bidder, but we're on sale to you, sir.
0:08:41 > 0:08:43He's come back to me at 61.
0:08:43 > 0:08:44Sir, do you want 62?
0:08:44 > 0:08:4662. 63?
0:08:46 > 0:08:47No?
0:08:47 > 0:08:50On my right at £62,000.
0:08:50 > 0:08:52On my right.
0:08:52 > 0:08:54One, two, three.
0:08:54 > 0:08:55Congratulations, sir.
0:08:55 > 0:08:58That's yours. Number 354.
0:09:01 > 0:09:03After a mini-battle, the lot was bought
0:09:03 > 0:09:06by part-time property developer Clive.
0:09:06 > 0:09:09Clive has employed the services of builder and friend Mark
0:09:09 > 0:09:10to do the work here,
0:09:10 > 0:09:13whilst Rodney the dog is hoping that this property
0:09:13 > 0:09:15won't turn out to be a dog's dinner.
0:09:15 > 0:09:17- Clive, nice to meet you. - Nice to meet you, Dion.
0:09:17 > 0:09:19- Mark, nice to meet you, too. - Morning.
0:09:19 > 0:09:20- Congratulations, lads.- Thanks a lot.
0:09:20 > 0:09:23What made you buy this particular property, then?
0:09:23 > 0:09:25That's a good question, Dion.
0:09:25 > 0:09:27Getting desperate - it was getting late in the auction,
0:09:27 > 0:09:29- simple as that.- Is that it?
0:09:29 > 0:09:30That is it, really.
0:09:30 > 0:09:32So did you, did you go for more than this one
0:09:32 > 0:09:34or was it just this one you went for?
0:09:34 > 0:09:37Well, we actually bid on a couple of properties but we were
0:09:37 > 0:09:40blown out the water. It was a busy old auction.
0:09:40 > 0:09:43All the properties we viewed, which were about 11 properties we viewed
0:09:43 > 0:09:45in the Wolverhampton and Bilston area,
0:09:45 > 0:09:48went for ridiculous amounts of money, so we didn't bid on them.
0:09:48 > 0:09:50It came very late in the auction
0:09:50 > 0:09:52and this one popped up.
0:09:52 > 0:09:54And I know what you're going to say as well -
0:09:54 > 0:09:56- "Did you view the property?" - And you didn't, did you?
0:09:56 > 0:09:59- I didn't do any of it.- I didn't have to say anything.- You know.
0:09:59 > 0:10:01You know exactly where I'm going to go with that one.
0:10:01 > 0:10:03When it did come up, then, and you thought,
0:10:03 > 0:10:06"Hold on a minute, I know the area," what made you...?
0:10:06 > 0:10:08I think it was just, you know,
0:10:08 > 0:10:10- it wasn't going for a colossal amount of money, basically.- OK.
0:10:10 > 0:10:14- Yeah.- So what's you guys' relationship, then?
0:10:14 > 0:10:20- I'm doing a property at the minute for Clive's daughter...- OK.
0:10:20 > 0:10:22- ..in West Bromwich.- OK.
0:10:22 > 0:10:24And through that we got this job to do this.
0:10:24 > 0:10:27- So you're doing all the work, more or less?- Yeah.
0:10:27 > 0:10:29- You're the builder, more or less?- I am. Yes.
0:10:29 > 0:10:32So when you come into a place like this, what's your first thoughts?
0:10:32 > 0:10:35Do you know exactly what needs to be done straightaway
0:10:35 > 0:10:37or has Clive given you an insight on what needs to be done?
0:10:37 > 0:10:39Well, no, cos it's the first time I've seen it.
0:10:39 > 0:10:41So go and have a look round, look outside first.
0:10:41 > 0:10:43It's a good solid old building.
0:10:43 > 0:10:47And then go inside and looking at - what are the walls like?
0:10:47 > 0:10:48Is there any damp in here?
0:10:48 > 0:10:50Are the windows any good? What are the windows like?
0:10:50 > 0:10:52When's the first time you seen this place?
0:10:52 > 0:10:54We got in here last Friday.
0:10:54 > 0:10:56- OK.- Yeah, a few days ago.
0:10:56 > 0:10:59We viewed it from the outside before we could get in,
0:10:59 > 0:11:01but, yeah, just a few days ago.
0:11:01 > 0:11:03And what were your thoughts as well?
0:11:03 > 0:11:06Not as bad as I was expecting, I must admit.
0:11:06 > 0:11:08And nothing has frightened you so far?
0:11:08 > 0:11:09Have you found anything that you think,
0:11:09 > 0:11:12"Wow, I wish that wasn't there"?
0:11:12 > 0:11:15There's no hidden shocks, let's put it that way.
0:11:15 > 0:11:16Nothing untoward.
0:11:16 > 0:11:20We knew that, you know, the property had been broken into beforehand
0:11:20 > 0:11:24and somebody kindly relieved us of the boiler and the copper piping
0:11:24 > 0:11:25and so on,
0:11:25 > 0:11:28but, other than that, you know, nah, there's no shocks.
0:11:28 > 0:11:31So where do you start on something, a project like this?
0:11:31 > 0:11:32Mark, where will you start?
0:11:32 > 0:11:34I know you're going to be doing most of the work.
0:11:34 > 0:11:36First of all, we'll start upstairs,
0:11:36 > 0:11:39just get the floor in and make that safe, for one.
0:11:39 > 0:11:42You know, because that's the biggest thing, don't fall down the stairs.
0:11:42 > 0:11:45And again to start with this Artex ceiling,
0:11:45 > 0:11:46bit of class, get rid of that.
0:11:46 > 0:11:49Get rid of that, overboard that.
0:11:49 > 0:11:52Get the first fix done, make sure the first fix is done first.
0:11:52 > 0:11:55Then you get your electrician and your plumber coming in,
0:11:55 > 0:11:57they get their first fix in.
0:11:57 > 0:11:58Then we take it from there.
0:11:58 > 0:12:01Second fix in, then getting the rads on the wall,
0:12:01 > 0:12:04get some heat in the place, getting the electric working,
0:12:04 > 0:12:06changing the light fittings that need to be done.
0:12:06 > 0:12:09Then gradually working your way out, work your way out the front door.
0:12:09 > 0:12:11OK. Any configuration changes?
0:12:11 > 0:12:14Are you changing rooms or adding things to anything upstairs?
0:12:14 > 0:12:16No, I don't think so. I don't think it's possible.
0:12:16 > 0:12:19Only that little wall upstairs where the boiler was,
0:12:19 > 0:12:22we'll take that out, make the room bigger.
0:12:22 > 0:12:24So the plan is to keep things simple here,
0:12:24 > 0:12:26which is a very wise decision.
0:12:27 > 0:12:31They want to stick to a generous budget of around 15 grand
0:12:31 > 0:12:34and a timescale of 12 weeks to get this property
0:12:34 > 0:12:36ready for the sales market.
0:12:36 > 0:12:39To help with that, Clive's friend Kev is mucking in.
0:12:39 > 0:12:42And what are you hoping to achieve from this house
0:12:42 > 0:12:45in regards to figures when you sell it?
0:12:46 > 0:12:50I think, you know, I think as long as I can make, you know,
0:12:50 > 0:12:52- a clear 20 grand.- OK.
0:12:52 > 0:12:54Well, chaps, I wish you all the best, I hope it works out for you.
0:12:54 > 0:12:59- Cheers, Dion.- Good luck, Clive. And, Mark, good luck.- Thank you very much. Thank you.- No problem.
0:12:59 > 0:13:02So, by not viewing the property, Clive has broken one of Hammer's
0:13:02 > 0:13:06golden rules and got himself a bit of a panic buy.
0:13:06 > 0:13:10What I will say is Clive, Mark and friend Kev will have to keep an eye
0:13:10 > 0:13:14on the budget cos there is a ceiling price in the area.
0:13:14 > 0:13:17You can find out how they get on later in the programme.
0:13:22 > 0:13:26Royal Tunbridge Wells in Kent is less than 40 miles from London
0:13:26 > 0:13:30and it's here that we find Lucy following in famous footsteps.
0:13:31 > 0:13:35Now, the wife of King Charles I came here back in the mid-1600s
0:13:35 > 0:13:38to drink the supposedly healthy spring waters,
0:13:38 > 0:13:41and since then this fashionable spa town
0:13:41 > 0:13:43has been attracting the aristocracy
0:13:43 > 0:13:48and it's still hugely popular with day-trippers and also families.
0:13:48 > 0:13:51It's not surprising, because Tunbridge Wells offers lots
0:13:51 > 0:13:53of lovely period properties,
0:13:53 > 0:13:56good schools and it is also under an hour commute
0:13:56 > 0:13:58into London by fast train.
0:13:58 > 0:14:01The property I'm here to see is about half a mile west
0:14:01 > 0:14:03of the town centre and
0:14:03 > 0:14:07it's a basement flat in this rather attractive period property.
0:14:07 > 0:14:09Now, it's got one bedroom and it had a guide price at auction
0:14:09 > 0:14:13of £100,000-£110,000.
0:14:13 > 0:14:15I'm going to go down, down, down.
0:14:18 > 0:14:21Basement flats can have their downsides.
0:14:21 > 0:14:25But things are looking up with shared parking at the rear
0:14:25 > 0:14:28and the entrance is tucked around the side.
0:14:28 > 0:14:29# Don't let me down
0:14:29 > 0:14:31# If you have to let me down at all
0:14:31 > 0:14:33# Don't let me down... #
0:14:33 > 0:14:36So, down these stairs, into the property.
0:14:36 > 0:14:39You know, straightaway I'm getting that dark, dingy,
0:14:39 > 0:14:41typical basement flat feeling.
0:14:41 > 0:14:44But, for a one-bedroom property,
0:14:44 > 0:14:45it's actually quite spacious.
0:14:45 > 0:14:48I can see somebody would get rather excited by this.
0:14:48 > 0:14:52You've got bedroom, bathroom, lounge.
0:14:52 > 0:14:55Although, you've got very, very low ceilings in here,
0:14:55 > 0:14:58and, you know, usually the payoff for a basement flat
0:14:58 > 0:15:01is that you might get access to the garden,
0:15:01 > 0:15:03a little piece of outside.
0:15:03 > 0:15:06But with this property you don't even get that.
0:15:06 > 0:15:09And now I've been in here for almost a minute...
0:15:09 > 0:15:12- SHE SNIFFS - ..I can smell damp...
0:15:12 > 0:15:13I can see damp.
0:15:13 > 0:15:15I mean, look at that.
0:15:15 > 0:15:18That is not a good sign.
0:15:18 > 0:15:21So you've got damp there, damp over there.
0:15:21 > 0:15:24I mean, wait until I show you the kitchen.
0:15:24 > 0:15:26I mean, it's like there's a cotton wool layer over this wall.
0:15:26 > 0:15:28Look at that!
0:15:28 > 0:15:31That would petrify me.
0:15:31 > 0:15:33Let's hope whoever bids for this at auction
0:15:33 > 0:15:35has time to get a survey first
0:15:35 > 0:15:38because you can smell it, look, you can see it.
0:15:38 > 0:15:40It's everywhere.
0:15:40 > 0:15:42- SHE SIGHS - There's a lot of work to do
0:15:42 > 0:15:46with this flat and it could completely sink your funds.
0:15:46 > 0:15:47# Oh, oh
0:15:47 > 0:15:49# Oh, no
0:15:49 > 0:15:50# Oh, oh
0:15:50 > 0:15:52# Oh, no, it's bad
0:15:52 > 0:15:54# It's bad... #
0:15:54 > 0:15:56Basement flats can often have damp issues,
0:15:56 > 0:15:59but this one is showing some very serious signs, with the floor,
0:15:59 > 0:16:03wall and ceilings all seemingly affected.
0:16:03 > 0:16:05# Oh, no, it's bad
0:16:05 > 0:16:06# It's bad... #
0:16:06 > 0:16:09So, how do you fix this hideous damp problem?
0:16:09 > 0:16:12Well, all the external belowground walls will be surrounded
0:16:12 > 0:16:14by damp soil.
0:16:14 > 0:16:18And all that damp will be trying to just push through
0:16:18 > 0:16:20and penetrate your walls.
0:16:20 > 0:16:23So you can either block it out with traditional tanking,
0:16:23 > 0:16:26which is basically a cement-based waterproof render
0:16:26 > 0:16:28which holds the water back,
0:16:28 > 0:16:31or you could install a cavity drain membrane lining.
0:16:31 > 0:16:34Now, this allows the water in, but it channels the moisture
0:16:34 > 0:16:37coming through the walls into a drainage system.
0:16:37 > 0:16:40The collected water is then moved away
0:16:40 > 0:16:42using a sump and pump arrangement.
0:16:42 > 0:16:44Now, it's not going to be cheap
0:16:44 > 0:16:48and these walls will have to be taken back to bare brick.
0:16:48 > 0:16:50- So... - SHE INHALES SHARPLY
0:16:50 > 0:16:53..it's a big, expensive and messy job.
0:16:53 > 0:16:55Yes, there is no getting away from it -
0:16:55 > 0:16:57this flat has a whole lot of problems.
0:16:57 > 0:17:00And it's not just the soil surrounding the flat
0:17:00 > 0:17:02that's causing the trouble.
0:17:02 > 0:17:05There is also damp coming through, not just the walls,
0:17:05 > 0:17:09but also the ceiling in the bathroom and the kitchen.
0:17:09 > 0:17:12And that's because they're underneath this driveway.
0:17:12 > 0:17:15Now, this here is actually one of the air vents for the flat.
0:17:15 > 0:17:20So to cure this source of damp you might need to dig up a section
0:17:20 > 0:17:21of this shared driveway,
0:17:21 > 0:17:24which, as you can see, leads to the communal car park.
0:17:24 > 0:17:27That's going to affect the other tenants in the building
0:17:27 > 0:17:29and you'll have to get permission from the freeholder.
0:17:29 > 0:17:34So, it could get very complicated and take a long time.
0:17:34 > 0:17:36Although the flat is spacious
0:17:36 > 0:17:38for that guide price of £100,000-£110,000,
0:17:38 > 0:17:42you could end up with some hefty bills sorting out the damp.
0:17:42 > 0:17:45And the question is, would you ever get your money back?
0:17:48 > 0:17:52Time to ask a local estate agent to give us his thoughts
0:17:52 > 0:17:53on the local market.
0:17:56 > 0:17:58The market in Tunbridge Wells
0:17:58 > 0:18:00over the last ten, 20 years
0:18:00 > 0:18:02has always been fairly stable,
0:18:02 > 0:18:03fairly popular.
0:18:03 > 0:18:06Yes, obviously the market, things have gone up,
0:18:06 > 0:18:07the market's been steadily going up,
0:18:07 > 0:18:11but we don't seem to get the booms and busts in this town.
0:18:11 > 0:18:13So how does this basement flat shape up
0:18:13 > 0:18:16in this nice and steady Tunbridge Wells market?
0:18:17 > 0:18:20Key thing in this flat is going to be
0:18:20 > 0:18:22securing the damp problems.
0:18:22 > 0:18:25But it's a great-sized flat, good-sized rooms,
0:18:25 > 0:18:27and it does have off-road parking,
0:18:27 > 0:18:30but it is a narrow driveway down the side
0:18:30 > 0:18:32so you're not going to be able to get a big car down there,
0:18:32 > 0:18:34but the fact it's got the parking is the important thing.
0:18:34 > 0:18:38Assuming the damp is beaten back and the flat renovated,
0:18:38 > 0:18:40could you add a significant profit,
0:18:40 > 0:18:43assuming you got it for around the guide price?
0:18:44 > 0:18:45Once this flat's done up and looking good,
0:18:45 > 0:18:49I believe the likely sale price will be somewhere round about
0:18:49 > 0:18:52£170,000 to £180,000.
0:18:52 > 0:18:54And what about its rental potential?
0:18:54 > 0:18:58Rented out, once it's all completed,
0:18:58 > 0:19:01I would expect it to be achieving something round about
0:19:01 > 0:19:03£700 to £750 per calendar month.
0:19:09 > 0:19:12This basement flat, well, it's in a great location,
0:19:12 > 0:19:15it's not too far from the town centre and the train station,
0:19:15 > 0:19:19but there's no escaping the fact it's a basement flat,
0:19:19 > 0:19:23it's dark, it's damp, and it needs a complete overhaul.
0:19:23 > 0:19:26So who wasn't put off by this low-level property?
0:19:26 > 0:19:29Let's find out who bid at auction.
0:19:32 > 0:19:35We go on to lot 64.
0:19:35 > 0:19:36Let's say £100,000 to start.
0:19:36 > 0:19:38£100,000, we're on the way.
0:19:38 > 0:19:40And 102 for anyone?
0:19:40 > 0:19:43102, 104, and 6,
0:19:43 > 0:19:45and 6, fresh place, and 8,
0:19:45 > 0:19:46and 110.
0:19:46 > 0:19:49110 and 12 for either of you.
0:19:49 > 0:19:50112 and 114.
0:19:50 > 0:19:52114.
0:19:52 > 0:19:53116 now.
0:19:53 > 0:19:55116. And 118.
0:19:55 > 0:19:57118. Missed you. 118.
0:19:57 > 0:19:58120.
0:19:58 > 0:20:00120, 122.
0:20:00 > 0:20:02122. 122 I'm looking for.
0:20:02 > 0:20:05124. 124. 126.
0:20:05 > 0:20:07128.
0:20:08 > 0:20:11128. 130 now.
0:20:11 > 0:20:13130. 130. Nice smile.
0:20:13 > 0:20:16132. 132, anybody else?
0:20:17 > 0:20:20At 130 and for the first time,
0:20:20 > 0:20:22for the second time...
0:20:22 > 0:20:25Third and final time, quite sure we're all done -
0:20:25 > 0:20:27£130,000, you got yourself a flat.
0:20:27 > 0:20:31And so the hammer fell on the Tunbridge Wells flat
0:20:31 > 0:20:32at £130,000,
0:20:32 > 0:20:36and the successful bidders were Lin and his wife Yong.
0:20:39 > 0:20:43Lin is a carpenter while Yong looks after their three children,
0:20:43 > 0:20:46and the flat was their first property purchase.
0:20:47 > 0:20:50- Yong, lovely to meet you. - Lovely to meet you.
0:20:50 > 0:20:52Lin, congratulations.
0:20:52 > 0:20:55Guys, I want to know the story, and who saw this.
0:20:55 > 0:20:57I saw it.
0:20:58 > 0:21:02The first time I came here I just saw a really big space,
0:21:02 > 0:21:04so I really love it.
0:21:04 > 0:21:08And what's been the reason for you wanting to do this?
0:21:08 > 0:21:12We're still renting, so we were looking for somewhere,
0:21:12 > 0:21:17and then start doing something and then we can own our own place.
0:21:17 > 0:21:20So you're renting at the moment, and now that you've bought this,
0:21:20 > 0:21:22to obviously do up,
0:21:22 > 0:21:25and is it so that you and your family can move in here?
0:21:25 > 0:21:28No. Because we're a big family, we've got three children,
0:21:28 > 0:21:32and we wanted to continue to live in Tunbridge Wells
0:21:32 > 0:21:35but the house price in Tunbridge Wells is really, really high,
0:21:35 > 0:21:39so we need to do this continuously
0:21:39 > 0:21:44to build up our capital to buy a new family house.
0:21:44 > 0:21:46So has every single penny that you possess
0:21:46 > 0:21:48been invested in this property?
0:21:48 > 0:21:51- Yeah.- Yeah.- Does that make you feel quite nervous?
0:21:51 > 0:21:54- I feel a bit nervous, but... - I'm confident about it.
0:21:54 > 0:21:55You're confident about this.
0:21:55 > 0:21:59Lin is hoping to do a lot of the work himself
0:21:59 > 0:22:01using his carpentry skills.
0:22:01 > 0:22:04But the relatively minor cosmetic issues like the kitchen or bathroom
0:22:04 > 0:22:08are not the thing to worry about here. What about the damp?
0:22:08 > 0:22:10Did you get this property surveyed?
0:22:10 > 0:22:15- No.- And obviously, walking in here, you can smell some damp.
0:22:15 > 0:22:18Did you look at the property before you bid for this?
0:22:18 > 0:22:20Yeah, I looked.
0:22:20 > 0:22:23And did the damp worry you, raise any alarm bells?
0:22:23 > 0:22:24No.
0:22:24 > 0:22:28- And what about you now?- The damp is a big issue for us now,
0:22:28 > 0:22:31so we, first thing we need to sort out - the damp.
0:22:31 > 0:22:35I will ask some professionals to come and have a look,
0:22:35 > 0:22:40make a decision how to get the problem sorted.
0:22:40 > 0:22:42Let's put the damp aside for one minute.
0:22:42 > 0:22:46What do you see you can do in this property to add value?
0:22:46 > 0:22:49Er...new kitchen.
0:22:49 > 0:22:53New bathroom, and a new staircase.
0:22:53 > 0:22:55So tell me about the staircase.
0:22:55 > 0:22:57I'm sure that's something you can make.
0:22:57 > 0:23:00I'm looking for the glass side.
0:23:00 > 0:23:03Yeah, it looks modern.
0:23:03 > 0:23:05- So something really spectacular? - Yeah.
0:23:05 > 0:23:09We want to make this property modern and brighter,
0:23:09 > 0:23:11cos it's a basement flat,
0:23:11 > 0:23:14so the ceiling's a bit low.
0:23:14 > 0:23:18We want to make it, like, very bright.
0:23:18 > 0:23:20How much money have you got to spend here?
0:23:20 > 0:23:22Around 15,000.
0:23:22 > 0:23:27- MARTIN:- £15,000 is a fair enough budget for a cosmetic refurbishment,
0:23:27 > 0:23:31but without a damp survey and an estimate for the work,
0:23:31 > 0:23:34it's a real unknown, and it might be a bit tight.
0:23:34 > 0:23:37As is Lin's eight-week timescale.
0:23:37 > 0:23:41How many properties, how many steps do you think it will be
0:23:41 > 0:23:46before you can get that dream house, you know, your ultimate goal?
0:23:46 > 0:23:48Maybe six, seven times.
0:23:48 > 0:23:51- So it's going to be quite a journey for you.- Yeah.
0:23:51 > 0:23:54Guys, good luck with this project. I'm really excited to see it,
0:23:54 > 0:23:57and I can't wait to hear what the outcome is.
0:23:57 > 0:23:59- Congratulations.- Thank you very much.- Hope it all goes well.
0:23:59 > 0:24:01- Thank you.- Thank you.
0:24:01 > 0:24:06Well, Yong and Lin have bought this flat to get away from renting,
0:24:06 > 0:24:08but they're not going to live here -
0:24:08 > 0:24:10it's just the first rung on the property ladder
0:24:10 > 0:24:12which will hopefully lead them
0:24:12 > 0:24:14up to eventually buying their own place.
0:24:14 > 0:24:17But there is a lot of work to do here first.
0:24:17 > 0:24:21There is serious damp to sort, and the whole flat to refurb.
0:24:21 > 0:24:24Will they be able to make enough profit here
0:24:24 > 0:24:27to move that one step closer to owning their own home,
0:24:27 > 0:24:31or will their funds just be sucked up by the damp problem?
0:24:31 > 0:24:34I'm worried. You can find out how they get on
0:24:34 > 0:24:36later on in the programme.
0:24:37 > 0:24:39Still to come, in Hinckley, Leicestershire,
0:24:39 > 0:24:43Mohammed's reason for buying is really rather simple.
0:24:43 > 0:24:47- Tell me why you wanted to buy this bungalow.- It's a bungalow.
0:24:48 > 0:24:49And in Tunbridge Wells, Kent,
0:24:49 > 0:24:52Lin's plans are also pretty straightforward.
0:24:52 > 0:24:56I think we just try and try until we've got enough.
0:25:02 > 0:25:05We are heading back to Walsall in the West Midlands now
0:25:05 > 0:25:08where I looked around this three-bed end terrace
0:25:08 > 0:25:11which had a guide price of 44 to 49 grand.
0:25:11 > 0:25:13Bruised and battered,
0:25:13 > 0:25:16this property had been sitting empty for some time.
0:25:16 > 0:25:20Unfortunately, it succumbed to some uninvited visitors.
0:25:21 > 0:25:26There are two radiators on the walls here, but there's no piping
0:25:26 > 0:25:29and I can see there's a cupboard specially built for the boiler,
0:25:29 > 0:25:31but there's no boiler.
0:25:31 > 0:25:37# Now, sweetheart, you done me wrong
0:25:37 > 0:25:43# You have left me all alone... #
0:25:43 > 0:25:47Yes, sadly, the boiler and the copper piping had been stolen,
0:25:47 > 0:25:50which meant anyone buying this property
0:25:50 > 0:25:53would need to add that to their to-do list.
0:25:55 > 0:25:57It proved popular on auction day,
0:25:57 > 0:25:59with the hammer falling at 62 grand.
0:25:59 > 0:26:01One, two, three.
0:26:01 > 0:26:03Congratulations, sir, that's yours.
0:26:06 > 0:26:08That successful bidder was Clive,
0:26:08 > 0:26:12who brought along with him his builder Mark and Rodney the dog.
0:26:12 > 0:26:14Part-time property developer Clive
0:26:14 > 0:26:19had gone about this latest purchase in an unconventional manner.
0:26:19 > 0:26:21What made you buy this particular property?
0:26:21 > 0:26:23That's a good question, Dion.
0:26:23 > 0:26:26Getting desperate. It was getting late in the auction. Simple as that.
0:26:26 > 0:26:28- Is that it?- That is it.
0:26:28 > 0:26:31Panic buying is a dangerous business,
0:26:31 > 0:26:35especially if, like Clive, you haven't even seen the property.
0:26:35 > 0:26:39Despite this, Clive was confident with builder Mark on board
0:26:39 > 0:26:41they'd be able to turn this unloved property
0:26:41 > 0:26:44into a desirable home ready for the resale market.
0:26:46 > 0:26:47It's now five months later,
0:26:47 > 0:26:50and time to find out if Clive's panic purchase
0:26:50 > 0:26:52was a blessing in disguise.
0:27:10 > 0:27:13What a transformation this has undergone.
0:27:13 > 0:27:16It's now an open-plan modern kitchen/diner,
0:27:16 > 0:27:21unrecognisable from the dilapidated, cramped space it once was.
0:27:21 > 0:27:24Clive explains what they've done.
0:27:24 > 0:27:25This was a wall, as you can see -
0:27:25 > 0:27:28X marks the spot where we've banged through, basically.
0:27:28 > 0:27:32Made it all one big lounge/dining area.
0:27:32 > 0:27:35I'm really glad we did this cos it's opened up the space
0:27:35 > 0:27:38and it's made it a nice living area.
0:27:38 > 0:27:42Next door, there is also a brand-new bathroom.
0:27:42 > 0:27:46Everything down here is just looking so much better,
0:27:46 > 0:27:48but what about upstairs?
0:27:57 > 0:28:02Excellent. They have added an en-suite off the master bedroom
0:28:02 > 0:28:05where the unused L-shaped storage used to be. Ideal.
0:28:11 > 0:28:14I'm glad to report that the heating has been replaced
0:28:14 > 0:28:17and that unwanted visitor is now a distant memory.
0:28:20 > 0:28:22At the back, the garden has been tidied up
0:28:22 > 0:28:25and a lovely bit of decking laid.
0:28:28 > 0:28:31The front of the property is also much improved
0:28:31 > 0:28:35with some off-road parking and a much-needed kerb-appeal face-lift.
0:28:40 > 0:28:44Clive and Mark, and not forgetting Rodney the dog,
0:28:44 > 0:28:45have done an amazing job here.
0:28:45 > 0:28:49Hopefully, it's not been too..."ruff".
0:28:50 > 0:28:53We're both really pleased, basically,
0:28:53 > 0:28:56that we've turned an unliveable...
0:28:56 > 0:28:58an unliveable shell, basically,
0:28:58 > 0:29:02into what is now a very nice family home.
0:29:02 > 0:29:04We've... We've gone for a good finish.
0:29:04 > 0:29:10We didn't want to just do a basic bog-standard finish in the property
0:29:10 > 0:29:12and mag it all up. We've gone for...
0:29:12 > 0:29:17We've gone for a neutral colour, but not a boring neutral colour.
0:29:17 > 0:29:20You know, the finish in the kitchen, it's of a good standard,
0:29:20 > 0:29:24the bathroom fitting downstairs, again, good standard.
0:29:24 > 0:29:25Good quality stuff.
0:29:25 > 0:29:28Er, all the things that you'd want to live in,
0:29:28 > 0:29:31you'd want to buy yourself for your own home,
0:29:31 > 0:29:33but without breaking the budget.
0:29:33 > 0:29:35Well, we'll see about that, Clive.
0:29:35 > 0:29:38Remember, you had a budget of 15 grand
0:29:38 > 0:29:40and a timescale of 12 weeks.
0:29:41 > 0:29:4415,000, did I really say that?
0:29:44 > 0:29:46Yeah, OK. We can double that.
0:29:46 > 0:29:48We can safely double the budget, basically.
0:29:48 > 0:29:52Yeah, if... We're now at just over the 30 grand mark.
0:29:52 > 0:29:56Er...but as far as we're concerned, it's money well spent.
0:29:56 > 0:29:59We had a couple of unexpected things with security.
0:29:59 > 0:30:02Er, it's probably the same wherever you go, basically.
0:30:02 > 0:30:05You can't leave a property empty for too long.
0:30:05 > 0:30:10So security was vital. We kept the shutters on for as long as possible,
0:30:10 > 0:30:13we've installed a very good security system on the property as well.
0:30:13 > 0:30:16Er, so that's all there.
0:30:16 > 0:30:18I mean, from start...
0:30:18 > 0:30:20It's not been massive.
0:30:20 > 0:30:22I couldn't give you specifics,
0:30:22 > 0:30:25but I would say it's probably been, top whack,
0:30:25 > 0:30:28probably been about 16 weeks from start to finish.
0:30:28 > 0:30:31So it hasn't been massive, it hasn't massively overran at all.
0:30:31 > 0:30:33Despite the overspend here,
0:30:33 > 0:30:37Clive seems delighted with the outcome, and so he should be.
0:30:37 > 0:30:39Having weighed up his options,
0:30:39 > 0:30:42Clive's decided to rent the property out,
0:30:42 > 0:30:44and already has a tenant in place.
0:30:47 > 0:30:49But is that the right option?
0:30:49 > 0:30:51We've asked along two local estate agents
0:30:51 > 0:30:53to get their opinions on the house
0:30:53 > 0:30:56and Clive's 92 grand investment.
0:30:58 > 0:31:01My first impressions, it's a very light and airy property.
0:31:01 > 0:31:05Works very well, the neutral colours and the decor.
0:31:05 > 0:31:07Pleasant property.
0:31:07 > 0:31:10The standard of finish is very good.
0:31:10 > 0:31:12I would say that it's probably...
0:31:13 > 0:31:17..finished off better than the area would normally demand,
0:31:17 > 0:31:18so, yes, it's very good.
0:31:18 > 0:31:22One of the selling points is the en-suite in the master bedroom.
0:31:22 > 0:31:25And it's got nice fixtures and fittings.
0:31:25 > 0:31:26Finished to a high standard.
0:31:26 > 0:31:28Nice, maintainable kitchen.
0:31:28 > 0:31:30And a large, attractive rear garden at the back.
0:31:30 > 0:31:33On the sales market I would imagine
0:31:33 > 0:31:36that the property would achieve somewhere between
0:31:36 > 0:31:38£100,000 and £110,000.
0:31:38 > 0:31:40However, if they decided to let it,
0:31:40 > 0:31:43I feel that a rental in the region
0:31:43 > 0:31:48of £625-£650 per calendar month would be appropriate.
0:31:48 > 0:31:50In the sales and rental market
0:31:50 > 0:31:53it would achieve offers over £110,00,
0:31:53 > 0:31:59and rental-wise £650-£675 per calendar month.
0:31:59 > 0:32:04OK, so if Clive did achieve £110,000,
0:32:04 > 0:32:08that would mean a pre-tax profit of 18 grand.
0:32:08 > 0:32:11And I do happen to know that Clive's tenant is paying
0:32:11 > 0:32:13£675 per calendar month,
0:32:13 > 0:32:19which means an amazing rental yield of just under 9%.
0:32:19 > 0:32:21So, even though Clive did overspend,
0:32:21 > 0:32:23this has still been a great success
0:32:23 > 0:32:27and he can't wait to get back to the auction house.
0:32:27 > 0:32:29Most definitely, yes.
0:32:29 > 0:32:31Definitely. I'd recommend it, yeah.
0:32:31 > 0:32:35It's a great experience, it really is. And it's a bit of a buzz.
0:32:39 > 0:32:41Hinckley is a market town in Leicestershire,
0:32:41 > 0:32:46well connected for commuting to Leicester, Coventry and Birmingham.
0:32:46 > 0:32:49It used to be a centre for all kinds of manufacturing.
0:32:49 > 0:32:52Tights and textiles are all still made here.
0:32:52 > 0:32:55But it is also home to the headquarters
0:32:55 > 0:32:57of a famous British motorcycle.
0:33:00 > 0:33:03So, will the property I am here to see be a TRIUMPH?
0:33:03 > 0:33:07Well, let's hope so. It's certainly looking good from the outside.
0:33:07 > 0:33:11A three-bedroom bungalow, 20 minutes' walk from the town centre.
0:33:11 > 0:33:15Guide price, £110,000. Good news.
0:33:15 > 0:33:18'Good news, because I do love a bungalow!
0:33:18 > 0:33:22'The word actually comes from the Hindi bangalo or bangla,
0:33:22 > 0:33:24'which means "house in the Bengal style".'
0:33:28 > 0:33:31There's lots of sorts of layouts that bungalows have.
0:33:31 > 0:33:32The traditional one,
0:33:32 > 0:33:34you come through the front door into a little corridor,
0:33:34 > 0:33:39then all the rooms sort of spray out from that middle kind of area.
0:33:39 > 0:33:42This is an alternative. You come through the door
0:33:42 > 0:33:44and there's this little entrance area here.
0:33:44 > 0:33:47I actually prefer this layout. It makes, I think, a bit more sense.
0:33:47 > 0:33:51Place there where you might have a sort of guest loo.
0:33:51 > 0:33:53There isn't at the moment. It's just like a cloakroom.
0:33:53 > 0:33:55So something to maybe consider.
0:33:55 > 0:33:57But certainly somewhere to put stuff, which is good.
0:33:57 > 0:34:00Then through into your main living area.
0:34:00 > 0:34:02A nice set of patio doors out onto the garden.
0:34:02 > 0:34:05It looks to be in pretty good decorative order.
0:34:05 > 0:34:06A gas fire there, which
0:34:06 > 0:34:10my guess is it's connected to something like a back boiler,
0:34:10 > 0:34:13a traditional way for the age of this property that
0:34:13 > 0:34:16heating and water would have been provided -
0:34:16 > 0:34:19probably something to look at potentially updating.
0:34:19 > 0:34:21Through here you have got, obviously,
0:34:21 > 0:34:24this wall which separates the kitchen.
0:34:24 > 0:34:27Now, one of the great things about bungalows is that
0:34:27 > 0:34:30doing internal modifications needn't necessarily be
0:34:30 > 0:34:35as complicated as in other types of house.
0:34:35 > 0:34:39However, taking out that wall, which you might contemplate,
0:34:39 > 0:34:41is going to be a bit of a big job.
0:34:41 > 0:34:44But in terms of the kitchen, it's not in bad condition.
0:34:44 > 0:34:48It might not be 2016, but it's functional.
0:34:48 > 0:34:51And all in all, it's a good start, isn't it?
0:34:51 > 0:34:54# Well, all of a sudden, you look up
0:34:54 > 0:34:57# And there's something new
0:34:57 > 0:35:00# Oh, this could be the start of something good
0:35:00 > 0:35:03# And this must be the start of something
0:35:03 > 0:35:05# This could be the heart of something
0:35:05 > 0:35:09# This must the start of something fine
0:35:09 > 0:35:12# So fine, so fine... #
0:35:12 > 0:35:15So, three bedrooms and a separate loo.
0:35:15 > 0:35:18Bedrooms aren't massive, but they're OK.
0:35:18 > 0:35:20And, of course, one of the great things about bungalows,
0:35:20 > 0:35:25as I touched on just earlier, is that changing the internal layout
0:35:25 > 0:35:28is not as hard as if you've got, basically, a house
0:35:28 > 0:35:31where you've got all of the things above to consider
0:35:31 > 0:35:34when it comes to strengthening the walls, if you do take them out.
0:35:34 > 0:35:36So that's good. You've got flexibility.
0:35:36 > 0:35:38However, there does come a point when you are doing any kind
0:35:38 > 0:35:42of renovation on a property when you have to say, "What is the point?
0:35:42 > 0:35:44"Is it really going to affect the value?"
0:35:44 > 0:35:46if that is why you are doing it.
0:35:46 > 0:35:48Or, "Is it going to enhance my quality of life for living here?"
0:35:48 > 0:35:50if that's why you're doing it.
0:35:50 > 0:35:53And if you don't have to for either of those reasons, then don't.
0:35:53 > 0:35:55And this, I think, is a classic example
0:35:55 > 0:35:57where I would just leave it as it is.
0:35:57 > 0:36:00Tidy it up, modernise it a bit,
0:36:00 > 0:36:03paint it, give it a bit of zhuzh.
0:36:03 > 0:36:05Apart from that, it's fine.
0:36:07 > 0:36:10'Zhuzh, by the way, from the French, of course,
0:36:10 > 0:36:12'meaning pizzazz or something like that.'
0:36:14 > 0:36:17'If you did want to think about expanding this house,
0:36:17 > 0:36:19'there is a loft and a garage area,
0:36:19 > 0:36:22'which you could convert with appropriate planning permission.
0:36:22 > 0:36:26'But beyond a new boiler, does it really need anything else?'
0:36:26 > 0:36:30So, at the back of the property, not a huge garden,
0:36:30 > 0:36:32but it's quite nicely laid out.
0:36:32 > 0:36:35And I guess back here, what am I looking for?
0:36:35 > 0:36:38A potential to extend, perhaps.
0:36:38 > 0:36:39Well...
0:36:39 > 0:36:43Yeah...I'm not so sure it's really needed.
0:36:43 > 0:36:45And I'm not sure the shape of the roof necessarily
0:36:45 > 0:36:47is going to work particularly, anyway.
0:36:47 > 0:36:50What you've got here is a very desirable property anyway.
0:36:50 > 0:36:53So it's one of those where you are very...hm...
0:36:53 > 0:36:57you think very carefully before you do anything major to it.
0:36:57 > 0:36:59# Leave me, leave me, leave me, leave me
0:36:59 > 0:37:01# Leave me alone, uh-huh
0:37:04 > 0:37:06# Hey, leave me alone, man... #
0:37:06 > 0:37:08It may be tempting to extend
0:37:08 > 0:37:10but this house is already in such good condition,
0:37:10 > 0:37:12I think it will be ideal for the market
0:37:12 > 0:37:15after a programme of modernisation.
0:37:15 > 0:37:18We have invited along a local estate agent to tell us what
0:37:18 > 0:37:23he thinks of this property, guided at £110,000.
0:37:23 > 0:37:24First impression of the property -
0:37:24 > 0:37:27the property looks structurally sound, so it is mainly cosmetic work
0:37:27 > 0:37:29that would need to be done,
0:37:29 > 0:37:31looking at the bathroom, kitchen to be replaced,
0:37:31 > 0:37:34and then carpets and decoration to be looked at also.
0:37:34 > 0:37:36In terms of extending the property upwards,
0:37:36 > 0:37:39it looks like you'd probably have to leave it as a bungalow,
0:37:39 > 0:37:42maybe get one bathroom and bedroom up there,
0:37:42 > 0:37:45costing in the region of around £15,000.
0:37:45 > 0:37:47But whether you'd gain too much money on that, I'm not sure.
0:37:47 > 0:37:52What is the local market like for sales and rentals?
0:37:53 > 0:37:56Market is very buoyant, sales and lettings.
0:37:56 > 0:37:58Sales is slightly stronger.
0:37:58 > 0:38:03Well, with that in mind, let's get some values for this bungalow.
0:38:03 > 0:38:06With the work completed I would estimate this property to be worth
0:38:06 > 0:38:08in the region of £230,000 to £240,000.
0:38:08 > 0:38:11If the investor decided to extend upwards
0:38:11 > 0:38:15and increase the amount of bedrooms to two more bedrooms upstairs,
0:38:15 > 0:38:18the property could look to achieve in the region
0:38:18 > 0:38:20of £270,000 to £280,000.
0:38:20 > 0:38:24In terms of rental value, I'd expect this property to achieve in
0:38:24 > 0:38:27the region of £700-£750 per calendar month.
0:38:27 > 0:38:29As a four-bed property, I would look to achieve
0:38:29 > 0:38:32in the region of £850-£900 per calendar month.
0:38:37 > 0:38:41Well, not a lot that's negative to say about this place, really.
0:38:41 > 0:38:44Yes, it could do with a bit of modernisation inside.
0:38:44 > 0:38:47But nothing that a coat of paint and a few new kitchen doors
0:38:47 > 0:38:51couldn't sort for relatively small amounts of money.
0:38:51 > 0:38:53Yeah. Nice auction purchase.
0:38:53 > 0:38:56Let's see who agreed when it went under the hammer.
0:39:00 > 0:39:05Invite your bids here. I'm going to go up twos. 100,000, anywhere?
0:39:05 > 0:39:07100,000?
0:39:07 > 0:39:10100,000. 102.
0:39:10 > 0:39:14102. 104. 106. 108.
0:39:14 > 0:39:17110. 112. 114. 116.
0:39:17 > 0:39:21This lot came almost at the end of the day and it soon became clear
0:39:21 > 0:39:25that some very determined people had stayed on to bid for it.
0:39:25 > 0:39:27The guide price of 110 grand was left behind
0:39:27 > 0:39:30and we rejoin the bidding at 185,000.
0:39:30 > 0:39:33185 with the gentleman in the puffa jacket down here.
0:39:33 > 0:39:35186, anywhere?
0:39:35 > 0:39:37186. 187. 188.
0:39:37 > 0:39:39186 sitting down.
0:39:39 > 0:39:42186 for the first.
0:39:42 > 0:39:43186 for the second.
0:39:43 > 0:39:47187. 188. 189.
0:39:47 > 0:39:49190. 191.
0:39:50 > 0:39:52No? He's getting up.
0:39:52 > 0:39:54There's only two of you left now. 192?
0:39:54 > 0:39:57Unless I don't know something that you're all here for.
0:39:57 > 0:40:00191? No? Selling it down here.
0:40:00 > 0:40:02190 for the first.
0:40:02 > 0:40:04190 for the second.
0:40:04 > 0:40:07190 for the third and final time.
0:40:07 > 0:40:09Sold. 190. Well bought, sir.
0:40:09 > 0:40:12At 190,000, the successful bidder
0:40:12 > 0:40:15was London poverty developer Mohammed.
0:40:15 > 0:40:19I wanted to know what had brought him further afield to Hinckley
0:40:19 > 0:40:23and just what he had planned for one of my favourite types of properties.
0:40:25 > 0:40:29- Mohammed, great to meet you. - Nice to meet you.- Congratulations.
0:40:29 > 0:40:33- Tell me why you wanted to buy this bungalow.- It's a bungalow.- OK.
0:40:33 > 0:40:36- It's in Hinckley.- Right. - And it's Leicester.- Right.
0:40:36 > 0:40:38And I'm from London.
0:40:38 > 0:40:41OK. Looking good so far.
0:40:41 > 0:40:44Anything else other than the fact that it was a bungalow in Hinckley?
0:40:44 > 0:40:46- No. Hinckley I think is an up-and-coming area.- OK.
0:40:46 > 0:40:49A lot of people use it as a commuter town.
0:40:49 > 0:40:52Most of the residents here work around the area in
0:40:52 > 0:40:54Leicester, Birmingham, Coventry.
0:40:54 > 0:40:57So the demand is quite high and the schooling is very good as well.
0:40:57 > 0:40:59OK. Now, you wanted it... It's quite funny,
0:40:59 > 0:41:02but you wanted it specifically because it is a bungalow?
0:41:02 > 0:41:06- Yes, yes, yes. - Why?- They don't build them any more.
0:41:06 > 0:41:09- Not many, anyway.- And I think prices will go up a lot more for bungalows
0:41:09 > 0:41:12than other properties, and the population is getting older.
0:41:12 > 0:41:15Why do you point at me when you said that?
0:41:15 > 0:41:19Well, it's true, we're all getting older. This is true!
0:41:19 > 0:41:22So there will be a lot more elderly people around.
0:41:22 > 0:41:24- I think the demand will be far greater for bungalows.- OK.
0:41:25 > 0:41:27# Age ain't nothing but a number
0:41:27 > 0:41:30# Throwing down ain't nothing but a thang... #
0:41:30 > 0:41:33Hmm. Very harsh of Mohammed to point to me,
0:41:33 > 0:41:35particularly after I've just celebrated my...
0:41:35 > 0:41:38you know, 21st-ish birthday. Ahem!
0:41:38 > 0:41:41Anyway, he is in business with his two brothers,
0:41:41 > 0:41:45and I think that this experienced property developer has got it right.
0:41:45 > 0:41:46The UK faces an ageing population,
0:41:46 > 0:41:49and of course for those with mobility problems
0:41:49 > 0:41:51bungalows are an ideal home.
0:41:53 > 0:41:55What was the light-bulb bungalow moment?
0:41:55 > 0:41:59- We found one in Harpenden.- Right. - And that was a light-bulb moment.
0:41:59 > 0:42:02We built a nice lovely little extension on it
0:42:02 > 0:42:04and we realised they're quite nice.
0:42:04 > 0:42:05- So, you say you are from London? - Yes.
0:42:05 > 0:42:08And developing in London as well, or...?
0:42:08 > 0:42:11I mean, why have you sort of moved 100-odd miles north?
0:42:11 > 0:42:15Cost-effectiveness. I think London prices, as you must be well aware,
0:42:15 > 0:42:18are very, very expensive. The margins are tighter.
0:42:18 > 0:42:20And I think there's a lot more property investors there.
0:42:20 > 0:42:24We tried to move outside London to get a bit more value for money,
0:42:24 > 0:42:26I think a bit more long term.
0:42:26 > 0:42:27So, tell me what you are going to do to it?
0:42:27 > 0:42:29I think we'll probably end up modernising it,
0:42:29 > 0:42:32just leaving the layout as it is,
0:42:32 > 0:42:34not building an extension or anything.
0:42:34 > 0:42:36Sort of three bedrooms - it's more than enough.
0:42:36 > 0:42:39Probably touch up on the kitchen, the bathroom.
0:42:39 > 0:42:42It's got an old-fashioned boiler. Put a conventional boiler in.
0:42:42 > 0:42:45And that will be about it, really. Paint and decorate it throughout.
0:42:45 > 0:42:48Do you have an idea of how much it might cost at this point?
0:42:48 > 0:42:51I would say around about the £15,000 mark is quite realistic
0:42:51 > 0:42:52at the current time.
0:42:52 > 0:42:55And then the plan is what, to sell it on?
0:42:55 > 0:42:56No, we would probably keep it.
0:42:56 > 0:42:59Probably keep it for about anything between two to five years.
0:42:59 > 0:43:02So, a sort of medium-term investment for us.
0:43:02 > 0:43:05- And in the meantime just rent it? - Just rent it and see what happens.
0:43:05 > 0:43:07In this area, they're predicting prices to go up
0:43:07 > 0:43:11in the region of 5% to 7% for the next couple of years.
0:43:11 > 0:43:14'Mohammed thinks the works will take three months.
0:43:14 > 0:43:17'His own company will probably carry out the work
0:43:17 > 0:43:21'but he is considering hiring local contractors.'
0:43:21 > 0:43:22And where will you stop?
0:43:22 > 0:43:25How many bungalows does it take to satisfy you?
0:43:25 > 0:43:27It doesn't!
0:43:27 > 0:43:30This is where I earn my living from. So we wouldn't stop.
0:43:30 > 0:43:31I think we'll get a few more yet.
0:43:31 > 0:43:34Maybe south of England next time, round towards Devon, Cornwall.
0:43:34 > 0:43:36I think there's a lot more down there.
0:43:36 > 0:43:37Tell me a bit more about you, then.
0:43:37 > 0:43:39How did you get started in all this? What's your background?
0:43:39 > 0:43:43We... No, we just started back in 1988.
0:43:43 > 0:43:45- Oh, wow.- It seems a long time ago.
0:43:45 > 0:43:48You've been through a few ups and downs in the property market, then,
0:43:48 > 0:43:50- over the years?- Oh, definitely. I think three.
0:43:50 > 0:43:53- Three... Three cycles.- Wow.
0:43:53 > 0:43:56- And did you manage to survive those OK?- Oh, yes, yes, yes.
0:43:56 > 0:43:58The first one was the toughest, back...
0:43:58 > 0:43:59I don't know if you remember, back in 1992.
0:43:59 > 0:44:04'I'm sure many of us recall 1992, when Britain crashed out
0:44:04 > 0:44:07'of the European Exchange Rate Mechanism
0:44:07 > 0:44:10'and interest rates reached 15%.
0:44:10 > 0:44:13'However, Mohammed wasn't put off and his love for bungalows survived.'
0:44:13 > 0:44:16Do you find the yields on bungalows are better?
0:44:16 > 0:44:19- Do you get more in terms of rents and stuff?- Rents, no.
0:44:19 > 0:44:21You don't get many...much more rent.
0:44:21 > 0:44:23But you do get more in value.
0:44:23 > 0:44:27The value of the property itself goes up a lot more in bungalows,
0:44:27 > 0:44:30- I think.- Right. Well, listen, congratulations. Good luck with it.
0:44:30 > 0:44:32- Thank you very much.- I look forward to seeing how you get on.
0:44:34 > 0:44:37So, Mohammed refining his property investment strategy to
0:44:37 > 0:44:40one particular kind of property - bungalows.
0:44:40 > 0:44:42I don't actually think that's a bad idea.
0:44:42 > 0:44:46And he's got a great one here. How will he get on sorting it out?
0:44:46 > 0:44:48You can find out later in the show.
0:44:51 > 0:44:54So we've found out what's happened to one of the properties,
0:44:54 > 0:44:56but we've got to now find out about the other two.
0:44:56 > 0:44:58Yes, has everything gone to plan,
0:44:58 > 0:45:00or have they been plagued with problems?
0:45:00 > 0:45:02Let's get back and find out.
0:45:06 > 0:45:10It was in Royal Tunbridge Wells in Kent where Lucy first visited
0:45:10 > 0:45:14a one-bedroom basement flat which was dark, dank and full of horrors.
0:45:14 > 0:45:16OMINOUS MUSIC
0:45:16 > 0:45:19It's like there's a cotton wool layer over this wall.
0:45:19 > 0:45:21Look at that!
0:45:21 > 0:45:23That would petrify me.
0:45:27 > 0:45:31And the damp was everywhere, not just in the kitchen.
0:45:31 > 0:45:33It was in the bathroom,
0:45:33 > 0:45:38the large lounge and the bedroom. It went from wall to ceiling.
0:45:41 > 0:45:43Despite not having a survey,
0:45:43 > 0:45:48first-time property developers Lin and his wife Yong decided to sink
0:45:48 > 0:45:52£130,000 of their money into this rather damp property
0:45:52 > 0:45:56hoping that starting in the basement would actually give them a step up.
0:45:58 > 0:46:01What has been the reason for you wanting to do this?
0:46:02 > 0:46:06We're still renting, so we're looking for somewhere
0:46:06 > 0:46:11and then start doing something and then we can own our own place.
0:46:11 > 0:46:13So you're renting at the moment and the plan is
0:46:13 > 0:46:15that you've now bought this to obviously do up,
0:46:15 > 0:46:19and is it so that you and your family can move in here?
0:46:19 > 0:46:22No, because we're a big family - we've got three children
0:46:22 > 0:46:26and we wanted to continue living in Tunbridge Wells,
0:46:26 > 0:46:30but the house price in Tunbridge Wells is really, really high,
0:46:30 > 0:46:35so we need to do this continuously to build up our capital
0:46:35 > 0:46:38to buy a new family house.
0:46:38 > 0:46:40So this was the first important step
0:46:40 > 0:46:42on the property ladder for the whole family.
0:46:44 > 0:46:48Lin is a carpenter by trade and planned to do most of the work.
0:46:48 > 0:46:53They were hoping £15,000 and eight weeks would suffice,
0:46:53 > 0:46:54but that was all rather dependent
0:46:54 > 0:46:57on how difficult the damp problem actually was,
0:46:57 > 0:47:01so, now, just nine weeks later, we're back.
0:47:01 > 0:47:03Fingers crossed - here's hoping.
0:47:32 > 0:47:35Wow, what a difference a few weeks makes.
0:47:35 > 0:47:36Impressive stuff!
0:47:44 > 0:47:47Uh, we've got a brand-new kitchen.
0:47:47 > 0:47:50Everything's new - new tiles, new floor.
0:47:50 > 0:47:54We've waterproofed everything, so it looks good.
0:47:59 > 0:48:03And to go along with that new kitchen, there's the large bedroom.
0:48:08 > 0:48:10And a nicely finished-off bathroom.
0:48:12 > 0:48:16So far, so good, but how did Lin deal with all that pervading damp?
0:48:17 > 0:48:22We used specialist paint, waterproof paint,
0:48:22 > 0:48:25painting over the ceiling and the walls.
0:48:26 > 0:48:30The bathroom, we used plastic cladding to clad the ceiling.
0:48:30 > 0:48:32Even in the future, the damp comes through,
0:48:32 > 0:48:34it shouldn't be any problem.
0:48:34 > 0:48:38They used a damp-proof membrane in the bathroom and kitchen ceiling
0:48:38 > 0:48:41to prevent damp from coming through from the drive above.
0:48:41 > 0:48:44There are various types of membranes you can use
0:48:44 > 0:48:46that either come in sheets or in liquid form.
0:48:46 > 0:48:49The membrane acts as a barrier and can be used in conjunction
0:48:49 > 0:48:51with a damp-proof course.
0:48:51 > 0:48:53However, the best way to solve damp long-term
0:48:53 > 0:48:55is to deal with its source,
0:48:55 > 0:48:57otherwise it may come back to haunt you.
0:48:57 > 0:49:00The walls throughout the flat have had to be replastered
0:49:00 > 0:49:02and they've also fitted central heating,
0:49:02 > 0:49:05which should help make the flat seem cosier.
0:49:05 > 0:49:08But with all this additional work, they decided to employ a builder
0:49:08 > 0:49:14while Lin continued his carpentry job, so how involved were they?
0:49:14 > 0:49:15I've been working somewhere
0:49:15 > 0:49:18for another two or three weeks during this time,
0:49:18 > 0:49:20but I still come back in the evening time
0:49:20 > 0:49:25to do the carpentry work and then a little bit of painting work
0:49:25 > 0:49:28and then helping to sort out material.
0:49:28 > 0:49:34Yong has been helping doing the shopping for materials
0:49:34 > 0:49:38and doing some cleaning jobs, yeah.
0:49:38 > 0:49:41Initially, the plan was to put in high-specification fittings,
0:49:41 > 0:49:46but they opted for a more practical and robust but good-quality finish
0:49:46 > 0:49:49to make sure they keep that £15,000 on track.
0:49:50 > 0:49:52Actually, we saved a bit.
0:49:54 > 0:49:57It's under 13 grand.
0:49:57 > 0:50:00Lin spent £130,000 on the purchase price,
0:50:00 > 0:50:03then £13,000 on the renovation,
0:50:03 > 0:50:08but they ended up spending almost £6,000 on a two-month bridging loan.
0:50:08 > 0:50:12While the interest was £1,200, the rest was soaked up
0:50:12 > 0:50:16in service charges, arrangement fees, legal fees and documentation,
0:50:16 > 0:50:22so along with the agents' fees, it all came in at around £10,000,
0:50:22 > 0:50:24so has this basement flat been a good platform
0:50:24 > 0:50:26to start their property journey?
0:50:26 > 0:50:29What do two local property agents think?
0:50:29 > 0:50:30I think he's done a very good job.
0:50:30 > 0:50:33It was a pretty horrible place to look at last time,
0:50:33 > 0:50:36lots of mould and damp and stuff, and coming in here now,
0:50:36 > 0:50:41it's crisp, clean, sparkling and bright.
0:50:41 > 0:50:44First impressions of the flat - it's beautiful,
0:50:44 > 0:50:46it's done to a very, very high standard,
0:50:46 > 0:50:49it's very light as well, which I wasn't expecting.
0:50:49 > 0:50:51I think they've finished it very, very well.
0:50:51 > 0:50:55It's great space and it's very simple and that's what people like
0:50:55 > 0:50:58and they're able to put their own mark on the property.
0:50:59 > 0:51:02In order for Lin and Yong to pursue their dreams
0:51:02 > 0:51:03of buying their family home,
0:51:03 > 0:51:06it's important they can sell this property at a profit,
0:51:06 > 0:51:10so with £153,000 spent on the flat,
0:51:10 > 0:51:12what kind of money are they likely to have
0:51:12 > 0:51:15to invest in their next venture?
0:51:15 > 0:51:17If I was putting this property on the market now,
0:51:17 > 0:51:18with the work they've done to it,
0:51:18 > 0:51:21I would recommend an asking price of £185,000.
0:51:21 > 0:51:23If I was to market the property today,
0:51:23 > 0:51:26I'd market it for £190,000-£200,000.
0:51:26 > 0:51:31Yeah, that's great, yeah. Yeah, it's... We're quite happy about it.
0:51:31 > 0:51:35Yes, that is great news, because that's a potential pre-tax profit
0:51:35 > 0:51:37of £32,000-£47,000,
0:51:37 > 0:51:41so how many more properties does Lin think they need to do
0:51:41 > 0:51:43to get that family home?
0:51:45 > 0:51:49I think we just try and try until we've got enough.
0:51:49 > 0:51:50That's...
0:51:50 > 0:51:53That's all I can do.
0:51:54 > 0:51:57But with the average three-bedroom family home
0:51:57 > 0:52:00in Royal Tunbridge Wells costing 350,000,
0:52:00 > 0:52:05this is the first small step in what could be a long road.
0:52:05 > 0:52:08# I know
0:52:09 > 0:52:12# I was just your stepping stone... #
0:52:18 > 0:52:20Earlier on, I was in Hinckley, Leicestershire,
0:52:20 > 0:52:23the scene of a real "triumph".
0:52:23 > 0:52:26No, not the motorcycle, but one of my favourite types of property -
0:52:26 > 0:52:29a bungalow - and one in great nick.
0:52:30 > 0:52:33What you've got here is a very desirable property anyway,
0:52:33 > 0:52:36so it's one of those where I think you very... Hmm.
0:52:36 > 0:52:40You think very carefully before you do anything major to it.
0:52:40 > 0:52:46London property developer Mohammed agreed and paid £190,000 at auction
0:52:46 > 0:52:48and not just because of its good condition,
0:52:48 > 0:52:51but because of what it was.
0:52:51 > 0:52:54- You wanted it specifically because it is a bungalow?- Yes, yes.
0:52:54 > 0:52:55Why?
0:52:55 > 0:52:57- They don't build them any more. - This is true.
0:52:57 > 0:52:59And the population's getting older.
0:52:59 > 0:53:02Why did you point at me like that when you said that?
0:53:04 > 0:53:08He planned a light refurb on a 15-grand budget over three months.
0:53:09 > 0:53:14Well, it's now six months on, so time to see the big transformation.
0:53:14 > 0:53:16# Wow, wow, wow, wow! #
0:53:16 > 0:53:17MUSIC STOPS ABRUPTLY
0:53:17 > 0:53:19Whoa, hang on a minute - wind that back!
0:53:23 > 0:53:26Mm, is it just me, or is that exactly the same?
0:53:26 > 0:53:28Right, let's try another room.
0:53:28 > 0:53:30# Wow, wow, wow, wow! #
0:53:30 > 0:53:32MUSIC STOPS ABRUPTLY
0:53:32 > 0:53:36Buhhh, yes, you guessed it - there was me preparing for a big reveal,
0:53:36 > 0:53:38but nothing has changed in the bungalow,
0:53:38 > 0:53:40so what happened, Mohammed?
0:53:40 > 0:53:42# ..is still the same
0:53:42 > 0:53:45# It's still the same... #
0:53:45 > 0:53:47Not a lot happened in the last six months.
0:53:47 > 0:53:49Unfortunately, we were hoping to make changes,
0:53:49 > 0:53:51but nothing's happened.
0:53:51 > 0:53:53For the last six months, we've done absolutely nothing.
0:53:53 > 0:53:56I've been really, really busy with other projects.
0:53:56 > 0:53:58We're taking a project on in London,
0:53:58 > 0:54:00so this has been left on the back burner
0:54:00 > 0:54:03and now I think the moment has passed.
0:54:03 > 0:54:06Mohammed has changed one thing - his plan -
0:54:06 > 0:54:10as he now intends to sell rather than keep the property long-term,
0:54:10 > 0:54:13but selling it is proving tough.
0:54:14 > 0:54:17The only action that we've taken is we've put it on the market.
0:54:17 > 0:54:20The length of time it takes to sell property in Leicester
0:54:20 > 0:54:22is totally different from London.
0:54:22 > 0:54:25Here, it takes probably six to nine months to sell a property,
0:54:25 > 0:54:27whereas in London, things are done much faster,
0:54:27 > 0:54:29probably a couple of months.
0:54:29 > 0:54:31And there's one big change out of his control
0:54:31 > 0:54:34that Mohammed thinks is affecting his business.
0:54:35 > 0:54:37The vote to leave Europe -
0:54:37 > 0:54:40all the agents are finding it very, very difficult at the current time
0:54:40 > 0:54:43to sell any properties around the Hinckley area
0:54:43 > 0:54:45and this, I think, has filtered through to London.
0:54:45 > 0:54:48The uncertainty in the market and the uncertainty of the future
0:54:48 > 0:54:51has caused people to be a little bit more cautious
0:54:51 > 0:54:54as to what approach they want to take in the future.
0:54:54 > 0:54:57Well, it's possibly too early to really say for sure
0:54:57 > 0:54:59what changes Brexit will bring.
0:54:59 > 0:55:02There is an important lesson in all of this -
0:55:02 > 0:55:05always keep one eye on big national changes,
0:55:05 > 0:55:07like legislation or taxation,
0:55:07 > 0:55:10and how it might affect your property business.
0:55:11 > 0:55:14The lack of work has had little impact on budget, though.
0:55:14 > 0:55:19He spent about 50 quid on having the boiler fixed and cutting the grass,
0:55:19 > 0:55:22but he does makes sure the property is well maintained.
0:55:24 > 0:55:26Well, we make a conscious effort to come here
0:55:26 > 0:55:29every sort of eight to nine weeks to make sure that it's OK, it's safe,
0:55:29 > 0:55:33and we don't have any water leaks or burst water pipes.
0:55:33 > 0:55:35So learned anything, Mohammed?
0:55:36 > 0:55:38Not really, no, because we haven't done anything!
0:55:38 > 0:55:44But, no, experience, really, more than anything else.
0:55:44 > 0:55:46Well, we can all still learn something
0:55:46 > 0:55:48from two local estate agents.
0:55:48 > 0:55:50What can they tell us about the local market
0:55:50 > 0:55:52and what this property needs?
0:55:52 > 0:55:54Let's start with the agent who saw it
0:55:54 > 0:55:56when it was exactly the same six months ago.
0:55:58 > 0:56:00Since the start of the year, obviously Brexit has occurred,
0:56:00 > 0:56:02which has made the market slightly more slower.
0:56:02 > 0:56:06People are a bit more apprehensive to buy and sell properties.
0:56:06 > 0:56:09With people uncertain with the price of their properties,
0:56:09 > 0:56:10whether they're going to go up or down,
0:56:10 > 0:56:12they're slightly more apprehensive to buy
0:56:12 > 0:56:14and obviously interest rates
0:56:14 > 0:56:16are affecting mortgages recently as well.
0:56:16 > 0:56:17I think it's a shame that the owner
0:56:17 > 0:56:19hasn't decided to renovate the property.
0:56:19 > 0:56:22Obviously, there's a lot of potential in this property
0:56:22 > 0:56:25and it's costing him money, obviously, sat empty.
0:56:25 > 0:56:27In reality, this property needs a new bathroom.
0:56:27 > 0:56:31It needs the kitchen updating, it needs decorating throughout as well.
0:56:31 > 0:56:34Buyers that are looking at something like this are going to want it done,
0:56:34 > 0:56:36rather than it be a project,
0:56:36 > 0:56:39so it is going to limit its market appeal, certainly.
0:56:39 > 0:56:41However, bungalows are in short supply,
0:56:41 > 0:56:44so there is still a healthy interest in a property like this.
0:56:46 > 0:56:49Mohammed has spent 190,000 buying the bungalow.
0:56:49 > 0:56:53Let's overlook his renovation budget for maths, eh?
0:56:53 > 0:56:56So what could it fetch on the sales market in its current condition
0:56:56 > 0:57:00and what would it fetch if he undertook a programme of renovation?
0:57:03 > 0:57:07I would recommend an asking price of offers above £200,000.
0:57:07 > 0:57:09The property in finished condition,
0:57:09 > 0:57:10there are lots of comparable evidence
0:57:10 > 0:57:15to suggest we would be looking at a value of around about £225,000.
0:57:15 > 0:57:19In the property's current condition, the owner could expect to achieve
0:57:19 > 0:57:22a figure within the region of £200,000-£210,000.
0:57:22 > 0:57:24If a renovation was carried out,
0:57:24 > 0:57:26a new kitchen and bathroom and decoration,
0:57:26 > 0:57:29I believe this property would achieve within the region
0:57:29 > 0:57:31of £230,000-£240,000.
0:57:31 > 0:57:36So if Mohammed did sell on as is for that top valuation of 210,000,
0:57:36 > 0:57:39that would mean a pre-tax profit of 20 grand.
0:57:39 > 0:57:41Or if he did decide to do the work,
0:57:41 > 0:57:44there is still potential for a decent profit.
0:57:44 > 0:57:46Overall, it is probably safe to say
0:57:46 > 0:57:50that it has not been his most eventful auction purchase,
0:57:50 > 0:57:52but he seems to have escaped unscathed.
0:57:52 > 0:57:55It's definitely not put him off going back to the auctions.
0:57:55 > 0:57:56He just loves them.
0:57:58 > 0:58:02It's the excitement, and the timetable is quite stringent.
0:58:02 > 0:58:04You know, on this date, you put your 10% down.
0:58:04 > 0:58:07Four weeks later, you've got the property,
0:58:07 > 0:58:10and it's that strict timetable that you've got that really entices me
0:58:10 > 0:58:12and encourages me to buy at auction.
0:58:15 > 0:58:18Well, property developing can have some really high highs,
0:58:18 > 0:58:21but also some really dismal lows.
0:58:21 > 0:58:23And everything in between,
0:58:23 > 0:58:26but you just need to have brains, brawn and a lot of luck.
0:58:26 > 0:58:28So join us here next time on Homes Under The Hammer
0:58:28 > 0:58:30and we'll find out who's got what it takes.
0:58:30 > 0:58:32- See you next time.- Goodbye.- Goodbye.