0:00:02 > 0:00:03Hello and welcome to the show.
0:00:03 > 0:00:06Now, some people say that the glory days of property are over.
0:00:06 > 0:00:08But I'm not sure I buy into that.
0:00:08 > 0:00:11If you buy at the right price, there is still money to be made.
0:00:11 > 0:00:13Yes, if you do your research,
0:00:13 > 0:00:17there's a lot of value out there and a lot of property to choose from.
0:00:17 > 0:00:19But where do you go and find it?
0:00:19 > 0:00:20Well, Dion, I'm glad you asked.
0:00:20 > 0:00:24Because I reckon you should head down to your local property auction.
0:00:49 > 0:00:51I love hearing stories about
0:00:51 > 0:00:54a property that has been bought at auction.
0:00:54 > 0:00:56Where they bought and what they bought
0:00:56 > 0:00:58and what they're doing with it now.
0:00:58 > 0:01:01Yeah. And in our job, you don't have to look very far for those stories.
0:01:01 > 0:01:05So here are the three properties we're featuring on today's show.
0:01:06 > 0:01:09At a former fish shop in Hampshire,
0:01:09 > 0:01:11I think some doors are better left unopened.
0:01:12 > 0:01:14Should I open the fridge? No.
0:01:14 > 0:01:15Definitely not!
0:01:16 > 0:01:20In Netherton, near Dudley, I would happily open the front door,
0:01:20 > 0:01:23if I could find it. ..With no front door.
0:01:23 > 0:01:25So that's today's property finished.
0:01:27 > 0:01:29And Lucy gets quite a surprise
0:01:29 > 0:01:31at a small studio flat in south-east London.
0:01:32 > 0:01:34Well, I'm quite taken aback, actually,
0:01:34 > 0:01:36by the state of this place.
0:01:37 > 0:01:40All these properties have been sold at auction and we'll find out who
0:01:40 > 0:01:43bought them and what they paid when they went under the hammer.
0:01:43 > 0:01:44All done?
0:01:44 > 0:01:46Sold - 440.
0:01:50 > 0:01:54Back in 2013, I was in the market town of Fareham, in Hampshire,
0:01:54 > 0:01:59where I saw a property that had the potential to be a real catch
0:01:59 > 0:02:04if you reeled it in close to the £120,000 guide price.
0:02:04 > 0:02:07Apparently, it was formerly a fishmongers.
0:02:07 > 0:02:10So let's take a look inside, just for the halibut.
0:02:10 > 0:02:13MUSIC: Fisherman's Blues by The Waterboys
0:02:13 > 0:02:15So, what's the place like?
0:02:15 > 0:02:16Wow!
0:02:16 > 0:02:19Thank your lucky stars it's not smelly vision,
0:02:19 > 0:02:22because it smells like a fish shop.
0:02:22 > 0:02:25Wow! But that's exactly what we've got.
0:02:26 > 0:02:28One main, sort of, commercial area here.
0:02:28 > 0:02:30All the old units.
0:02:30 > 0:02:33You can imagine the ice and all the fish displayed nicely here.
0:02:33 > 0:02:36I mean, it looks to me like it hasn't had
0:02:36 > 0:02:39a lot of renovation work done on it in a long time.
0:02:39 > 0:02:41Shall I open the fridge? Should I open the fridge?
0:02:41 > 0:02:43No! Definitely not.
0:02:43 > 0:02:45But talking about fridges,
0:02:45 > 0:02:49one thing you have got here is this massive industrial fridge.
0:02:49 > 0:02:50Or freezer, perhaps.
0:02:50 > 0:02:52Now, if you were to buy that,
0:02:52 > 0:02:54it would probably cost you quite a lot of money,
0:02:54 > 0:02:58so somebody taking this on and running it as some kind of food-preparation
0:02:58 > 0:03:00type place, that's a real bonus.
0:03:00 > 0:03:03Because you've got the front area there, into the back here,
0:03:03 > 0:03:05which I imagine is the area where all the fish was prepared.
0:03:05 > 0:03:09You've got the toilet at the back there and then through out into the
0:03:09 > 0:03:12rear yard, which is where I think I'll go pretty quickly!
0:03:12 > 0:03:13I can still smell it.
0:03:13 > 0:03:16But what it also reeked of was potential.
0:03:16 > 0:03:19Because you didn't just get the shop,
0:03:19 > 0:03:21you also got a two-bedroom flat above.
0:03:21 > 0:03:26But the access to it would be easier if you could leap like a salmon.
0:03:26 > 0:03:28I can't see anyway of getting up there...
0:03:30 > 0:03:31..other than that.
0:03:33 > 0:03:34That can't be, can it?
0:03:37 > 0:03:38I think it is, you know.
0:03:40 > 0:03:44There really was only one word to describe access to this flat.
0:03:44 > 0:03:46Bizarre!
0:03:46 > 0:03:48MUSIC: How Bizarre by OMC
0:03:48 > 0:03:50# How bizarre...
0:03:50 > 0:03:52# How bizarre... #
0:03:52 > 0:03:55Haven't got a clue what I'm going to find up here.
0:03:55 > 0:03:56But...wow.
0:03:57 > 0:04:01How amazing! It's actually a really nice flat.
0:04:01 > 0:04:04And it looks like it hasn't been lived in for a very long time.
0:04:04 > 0:04:07But look at the floorboards, imagine those stripped back.
0:04:07 > 0:04:10A nice sort of space there.
0:04:10 > 0:04:12Through to this little middle area there,
0:04:12 > 0:04:13with some kind of swirly stairs
0:04:13 > 0:04:16going up to another floor there.
0:04:16 > 0:04:20Then through to, I guess, well, the front of the property,
0:04:20 > 0:04:23and we're now actually above the main shop unit here.
0:04:23 > 0:04:26A really nice-sized space.
0:04:26 > 0:04:27It's got double glazing,
0:04:27 > 0:04:31so it's obviously had some kind of renovation work done in the not too distant past.
0:04:31 > 0:04:34And I can't see any indication of where a staircase
0:04:34 > 0:04:37or anything...was.
0:04:37 > 0:04:38So a bit of a mystery.
0:04:38 > 0:04:40But what a lovely space!
0:04:42 > 0:04:46Upstairs, there were two loft bedrooms that would need plenty of
0:04:46 > 0:04:49work in order to comply with current building regs.
0:04:49 > 0:04:51There really wasn't much headroom.
0:04:51 > 0:04:56However, there was plenty of space outside.
0:04:58 > 0:05:01And then something which is described in the auction catalogue
0:05:01 > 0:05:03as a store room,
0:05:03 > 0:05:05which could be anything from a little shed to a...
0:05:05 > 0:05:07you know, a whatever.
0:05:07 > 0:05:09But no, it's this place!
0:05:09 > 0:05:12Absolutely fantastic space.
0:05:12 > 0:05:15So straightaway, I'm thinking this
0:05:15 > 0:05:18is a little project in its own right.
0:05:18 > 0:05:21It could well be a development, a house perhaps.
0:05:21 > 0:05:24It's all going to come down to access.
0:05:24 > 0:05:27There's a little passageway from the courtyard.
0:05:27 > 0:05:28You might be able to use that.
0:05:28 > 0:05:31You'd definitely have to have that checked out on the plans, first,
0:05:31 > 0:05:34though. Maybe there's somewhere you could put your car that end or whatever.
0:05:34 > 0:05:36It needs a bit of investigation.
0:05:36 > 0:05:40But if you could get that planning permission and get a building plot here, wow!
0:05:40 > 0:05:45So, with the commercial unit, flat and potential building plot,
0:05:45 > 0:05:49even the smell of the former fish shop shouldn't have had potential
0:05:49 > 0:05:51bidders turning their noses up at this lot
0:05:51 > 0:05:54when it went under the hammer.
0:05:59 > 0:06:02And our next lot this morning is Lot 28.
0:06:02 > 0:06:06It's the town centre shop and upper parts in Fareham.
0:06:06 > 0:06:08Someone start me middle of the guide, 110 to start me?
0:06:08 > 0:06:10110, I should think so.
0:06:10 > 0:06:12110 I have and 12 I'm looking for.
0:06:12 > 0:06:13110 I have and 12, may I say?
0:06:13 > 0:06:1512, thank you. And 14?
0:06:15 > 0:06:1714 and 16, sir?
0:06:17 > 0:06:1916. 18?
0:06:19 > 0:06:20Make it 20, sir?
0:06:20 > 0:06:2220. And a fresh place from you, madam. Thank you.
0:06:22 > 0:06:25Two at the back? 120 I have and two I'm looking for.
0:06:25 > 0:06:27And two I've got. And four, madam?
0:06:27 > 0:06:29And four. And six?
0:06:29 > 0:06:31And eight? And eight.
0:06:31 > 0:06:32And 130? 130.
0:06:32 > 0:06:34And two? And two?
0:06:34 > 0:06:36And four? Split the difference with you.
0:06:36 > 0:06:38133? 133.
0:06:38 > 0:06:39And four, madam? And four.
0:06:39 > 0:06:42And five? 134, I have.
0:06:42 > 0:06:45The lady stood at the back of the aisle, it's with you, madam, at 134,000.
0:06:45 > 0:06:48If you're all done then, ladies and gentlemen at 134,
0:06:48 > 0:06:51I'll be selling at 134 for the first time if you are all out?
0:06:51 > 0:06:52134 for the second time.
0:06:52 > 0:06:54134 third and final time.
0:06:54 > 0:06:56It's your bid, madam. Your number, please.
0:06:56 > 0:06:59The successful bid came from Amanda.
0:07:00 > 0:07:06She knew it was the right place for her and paid £134,000 at auction.
0:07:06 > 0:07:10She was a professional singer who had hoped to move into
0:07:10 > 0:07:12property development. So,
0:07:12 > 0:07:15I met up with Amanda to see if her plans were hitting the right note.
0:07:15 > 0:07:18So why did you want to buy this place?
0:07:18 > 0:07:21If you look around, you see the potential, really, of the whole building.
0:07:21 > 0:07:24There's obviously a commercial unit.
0:07:24 > 0:07:27Which I've already got a tenant for at the moment.
0:07:27 > 0:07:29- You have?- Yes, already.
0:07:29 > 0:07:33- Oh, wow.- So that's sort of quite good to get the tenant.
0:07:33 > 0:07:37And the flat upstairs, obviously, is going to be refurbed.
0:07:37 > 0:07:39There's nothing in there at the moment,
0:07:39 > 0:07:41because it hasn't been used for over 30 years.
0:07:41 > 0:07:43But this, this is the thing that got me.
0:07:43 > 0:07:45- This?- This.
0:07:45 > 0:07:49- Why this?- Because I could see the potential in planning something for
0:07:49 > 0:07:52this place. It's an empty store.
0:07:52 > 0:07:54But it's a very large empty store.
0:07:54 > 0:07:57And I'm hoping to get planning to actually build on the property here
0:07:57 > 0:08:00- as well.- Oh, wow.
0:08:00 > 0:08:03When it came to choosing a builder for the two-bed apartment,
0:08:03 > 0:08:07there was no need to "mullet" over as her partner Richard, a builder,
0:08:07 > 0:08:09was on board.
0:08:09 > 0:08:12The apartment was step three, though.
0:08:12 > 0:08:16Amanda's first priority was to carry out a basic renovation for her
0:08:16 > 0:08:20lined-up tenant, and then step two was to get to work on the flat.
0:08:20 > 0:08:25That's going to be converted into a two-bed apartment, a two-bed flat.
0:08:25 > 0:08:28There are two loft rooms which are fairly small.
0:08:28 > 0:08:30And restricted headroom.
0:08:30 > 0:08:35Obviously, with building regulations, you've got to have it fire approved and...
0:08:35 > 0:08:38Really, it's, you know, it's going to be lovely up there.
0:08:38 > 0:08:40There's nothing up there at the moment, no bathroom, no kitchen.
0:08:40 > 0:08:42I've got to get the electric up there,
0:08:42 > 0:08:46got to get the water up there. So that's the next step.
0:08:46 > 0:08:49Step was the appropriate word here because first you had to create
0:08:49 > 0:08:51separate access up to the flat.
0:08:51 > 0:08:57And when we returned four months later, that's just what they did.
0:08:57 > 0:08:59# You'd better know
0:08:59 > 0:09:03# That it's time to make your move
0:09:03 > 0:09:06# Just step on up now... #
0:09:06 > 0:09:08Inside was a huge step up too,
0:09:08 > 0:09:11as with no kitchen or bathroom to speak of,
0:09:11 > 0:09:15it looked just like a shell, with no plumbing or electrics,
0:09:15 > 0:09:18which makes this kitchen all the more impressive.
0:09:22 > 0:09:26Next door, the other room had been made into a lounge.
0:09:30 > 0:09:34A toilet and new shower room had even been squeezed in here,
0:09:34 > 0:09:36making great use of the space.
0:09:37 > 0:09:41Up the freshly decorated stairs were the two bedrooms.
0:09:41 > 0:09:45The flat was snapped up by the first tenant that came to see it,
0:09:45 > 0:09:48which meant that all of Amanda's hard work had paid off.
0:09:50 > 0:09:54I was there on my tummy, on the floorboards,
0:09:54 > 0:09:57helping lay the cables for the electrician.
0:09:57 > 0:10:01I had the pneumatic drill, I was breaking up concrete in the garden.
0:10:01 > 0:10:03I was painting, stripping walls,
0:10:03 > 0:10:05so I was definitely hands-on, I would say.
0:10:05 > 0:10:08The new tenants of the shop couldn't wait to get their hands on it.
0:10:08 > 0:10:10So they could get to work as soon as possible,
0:10:10 > 0:10:13Amanda did a quick refurb.
0:10:13 > 0:10:16We've done, obviously, the things that need to be done,
0:10:16 > 0:10:17which are the electrics.
0:10:17 > 0:10:21We've had the ceiling redone and plastered and fireproofed and
0:10:21 > 0:10:25- soundproofed.- After a slight overspend on her 18-grand budget,
0:10:25 > 0:10:29she had expected the figures would come in at around 24 grand.
0:10:29 > 0:10:33The plan was coming together with the shop renovated to modern standards
0:10:33 > 0:10:37and new tenants settled in and selling fish and farm produce.
0:10:37 > 0:10:40Both step one and two will bring in
0:10:40 > 0:10:42rental income and a yield of around 10%.
0:10:46 > 0:10:51Amanda isn't putting all her eggs in one basket, as the real golden goose
0:10:51 > 0:10:55could lie in the undeveloped store at the rear of the property.
0:10:56 > 0:10:59This is going to be the next project.
0:10:59 > 0:11:04We're planning to build a two-bed house here.
0:11:04 > 0:11:08We've put in the full plans now and just crossing our fingers and hoping
0:11:08 > 0:11:11that we will get what we want.
0:11:11 > 0:11:14Well, you know what they say about the best-laid plans and counting your chickens.
0:11:14 > 0:11:18Join us later in the show to see how Amanda's plans are
0:11:18 > 0:11:22progressing three and a half years after she netted this property.
0:11:27 > 0:11:31Dudley is a large town in the West Midlands, which sits between
0:11:31 > 0:11:33Wolverhampton and Birmingham.
0:11:33 > 0:11:37Dudley was the hometown of the late great Duncan Edwards,
0:11:37 > 0:11:41who played for the England football team and was sadly one of the
0:11:41 > 0:11:45Busby Babes who died as a result of the Munich Air Disaster,
0:11:45 > 0:11:48though not before a courageous fight for survival.
0:11:48 > 0:11:52He is commemorated in the town in several ways, and rightly so.
0:11:52 > 0:11:54This statue being one homage.
0:11:54 > 0:11:58So I'm less than a ten-minute drive away from the centre of Dudley
0:11:58 > 0:12:00and the property I'm here to see is a terraced house.
0:12:00 > 0:12:05It's got three bedrooms and a guide price of £35,000.
0:12:05 > 0:12:09It's a lovely shade of mustard yellow and chocolate brown.
0:12:11 > 0:12:13With no front door.
0:12:13 > 0:12:15So, that's today's property finished.
0:12:15 > 0:12:17Thank you very much.
0:12:19 > 0:12:21Only kidding! It's down here.
0:12:22 > 0:12:24Because of the shared passageway,
0:12:24 > 0:12:27this property has what is called a flying freehold.
0:12:27 > 0:12:30This can scare some potential buyers.
0:12:30 > 0:12:34But what I would advise is taking out an indemnity insurance policy,
0:12:34 > 0:12:37which would safeguard against any future issues.
0:12:37 > 0:12:42OK... Now that's not a great design.
0:12:42 > 0:12:45Behind that door is the front room.
0:12:45 > 0:12:49I'd like to show you it, but the design has spoilt it.
0:12:49 > 0:12:52However, when it's closed, it makes a bit more sense.
0:12:52 > 0:12:55A good-sized room, though, right at the front of the property.
0:12:55 > 0:12:59A bit of a smell of damp as well, a slight smell of damp.
0:12:59 > 0:13:03And a feeling of this, kind of, a kind of derelict feeling, as well.
0:13:03 > 0:13:06The rooms are a good size, nice high ceilings.
0:13:06 > 0:13:09The stairs are over there, going up to the bedrooms.
0:13:09 > 0:13:14A bit further on you've got this good-sized galley kitchen.
0:13:14 > 0:13:17It's in white. It's very, very dated.
0:13:17 > 0:13:21It would need to be changed completely in here.
0:13:21 > 0:13:25And maybe that is where that smell of damp has come from.
0:13:25 > 0:13:27That is a big hole, as well.
0:13:27 > 0:13:30You would have to get that checked out ASAP.
0:13:30 > 0:13:36And right at the end, there is a toilet, sink and a shower.
0:13:36 > 0:13:40A bit of a wet room there. That does feel like a bit of an afterthought
0:13:40 > 0:13:44that's been bolted on later on in the life of this property.
0:13:44 > 0:13:47It's a good size, there's lots of room to play with.
0:13:47 > 0:13:49But there's a fair amount to be done.
0:13:52 > 0:13:55I'd be inclined to reduce the wet room in size,
0:13:55 > 0:13:59perhaps just having a WC on the ground floor.
0:13:59 > 0:14:01You could then extend the kitchen
0:14:01 > 0:14:04or have a utility room in this back part of the house.
0:14:04 > 0:14:07Now, they are some seriously steep stairs,
0:14:07 > 0:14:10not very good for my old footballing knees.
0:14:10 > 0:14:14Right, what have we got? We've got three bedrooms up here.
0:14:14 > 0:14:17Two good-sized bedrooms either side of the staircase,
0:14:17 > 0:14:18definitely double bedrooms.
0:14:18 > 0:14:21And then you've got more of a box bedroom just down there at the end
0:14:21 > 0:14:25of the corridor. And here we've got the family bathroom.
0:14:25 > 0:14:27Now, it's dated.
0:14:27 > 0:14:31It's tired, you'd have to rip everything out of here and start again.
0:14:31 > 0:14:35And I think you'd actually get a bath in here as well.
0:14:35 > 0:14:39It just needs modernising, it needs bringing up-to-date.
0:14:39 > 0:14:41It just needs freshening up.
0:14:43 > 0:14:47Decoration like this is very much a feature from the '80s.
0:14:47 > 0:14:49Very dark and very dated.
0:14:49 > 0:14:50# But please make sure, baby
0:14:50 > 0:14:55# You've got some colours in there... #
0:14:55 > 0:14:58This house does need some colour to make it feel bigger, but what does
0:14:58 > 0:15:01this property offer outdoors?
0:15:01 > 0:15:03So I'm in the back garden,
0:15:03 > 0:15:07they have got a small sort of paved slabbed area.
0:15:07 > 0:15:10And a little bit further down the garden, you've got a bit more space.
0:15:10 > 0:15:14But it's a little bit overgrown at the moment and you can't see where
0:15:14 > 0:15:16the boundaries are at all.
0:15:16 > 0:15:19I think it goes back about 25 foot.
0:15:19 > 0:15:22I reckon I can get this sorted out in a weekend.
0:15:22 > 0:15:25But I'm not going to. Good luck to you.
0:15:27 > 0:15:29There's plenty of flora.
0:15:29 > 0:15:31And even a bit of fauna.
0:15:31 > 0:15:34But let's put my inner David Attenborough aside.
0:15:34 > 0:15:38We are here to see if it's worth getting the lawnmower out for this
0:15:38 > 0:15:41property. We've asked along a local estate agent to tell us about the
0:15:41 > 0:15:45- area and its potential.- The street itself appeals mainly to investors,
0:15:45 > 0:15:48so people tend to rent the properties out within the area.
0:15:48 > 0:15:52Young families and also people with children at the secondary school,
0:15:52 > 0:15:54because that's literally at the end of the road.
0:15:54 > 0:15:56And ideal for people that have dogs,
0:15:56 > 0:16:00because you are on the edge of Saltwells Nature Reserve as well.
0:16:00 > 0:16:04So, yes, I would say it appeals to young families and investors.
0:16:04 > 0:16:07Having a look around the property has shown me that the property does
0:16:07 > 0:16:08need complete renovation.
0:16:08 > 0:16:12I do feel that it would need complete bathroom, kitchen,
0:16:12 > 0:16:15bathroom on the ground floor, to be renovated.
0:16:15 > 0:16:18Redecoration throughout and the windows, too.
0:16:18 > 0:16:22And once renovated, what might this three-bed terrace sell for?
0:16:23 > 0:16:26This property, after renovation,
0:16:26 > 0:16:29I would recommend marketing between £95,000-£100,000.
0:16:29 > 0:16:31And rental?
0:16:31 > 0:16:34I would estimate that the rental value on this property would be
0:16:34 > 0:16:37between £550 and £600 per calendar months.
0:16:39 > 0:16:42It's fair to say that there's a lot of work that needs to be done
0:16:42 > 0:16:45in this house, and outside this house as well.
0:16:45 > 0:16:48But I think it's a good project to take on.
0:16:48 > 0:16:51Let's see who felt the same when it went under the hammer.
0:16:52 > 0:16:54Freehold three-bedroom mid-terrace
0:16:54 > 0:16:55in the heart of the Black Country
0:16:55 > 0:16:58in Netherton. Where shall we start?
0:16:58 > 0:17:01Start me if you will. 40,000?
0:17:01 > 0:17:0335, if we must.
0:17:03 > 0:17:04What a buy this will be.
0:17:06 > 0:17:08At 35,000, I'm bid, and thank you.
0:17:08 > 0:17:10At 35, I have standing.
0:17:10 > 0:17:13Potential buyers were a little hesitant with this lot,
0:17:13 > 0:17:14but the auctioneer
0:17:14 > 0:17:17managed to entice some bids out the crowd and we rejoin with the price
0:17:17 > 0:17:19at £40,000.
0:17:19 > 0:17:21A new bid at 40.
0:17:21 > 0:17:2441. 42. 43.
0:17:26 > 0:17:27No? 43, a new bid.
0:17:27 > 0:17:29At 43 on my left.
0:17:29 > 0:17:3144 is it, now?
0:17:31 > 0:17:3444. 45? 46...
0:17:34 > 0:17:36at the back? 46.
0:17:36 > 0:17:3847? 47, it is.
0:17:38 > 0:17:4148 at the back?
0:17:41 > 0:17:4248. 49? No.
0:17:42 > 0:17:45At £48,000.
0:17:45 > 0:17:48I am on sale at £48,000.
0:17:48 > 0:17:49Are we all done?
0:17:49 > 0:17:51One, two, three.
0:17:52 > 0:17:53Well done.
0:17:55 > 0:18:00Visible only by his bidding panel was Kash, who splashed out 48 grand
0:18:00 > 0:18:03on behalf of his dad's property development company.
0:18:04 > 0:18:08Kash has recently joined the family firm and we met him back at the
0:18:08 > 0:18:11house to find out what his plans were.
0:18:11 > 0:18:12Kash, nice to meet you.
0:18:12 > 0:18:14- Nice to meet you, too. - Congratulations, pal.
0:18:14 > 0:18:18- Thank you.- What was it about this house that made you want to buy it, then?
0:18:18 > 0:18:20Do know what, we went to the auction and obviously we went to
0:18:20 > 0:18:22look for a bargain, really.
0:18:22 > 0:18:24We knew what we had in mind and then, really,
0:18:24 > 0:18:26we went for a couple properties, to see what they went for.
0:18:26 > 0:18:29And this one, there wasn't that much interest.
0:18:29 > 0:18:32OK. So was that the main attraction, was it, the price?
0:18:32 > 0:18:34Yeah. Like, we usually look for
0:18:34 > 0:18:37- residential properties for under about 60,000.- OK.
0:18:37 > 0:18:41And obviously this was about 48, so we got it at a good price.
0:18:41 > 0:18:43So did you see inside the property before you bought it?
0:18:43 > 0:18:45We didn't actually see inside.
0:18:45 > 0:18:49We'd done some research online, so we knew the area.
0:18:49 > 0:18:51We knew what the return would be.
0:18:51 > 0:18:53So we knew a little bit about the area,
0:18:53 > 0:18:57but we didn't actually come and view it, so it was kind of a blind buy.
0:18:57 > 0:18:59Obviously, because of the price,
0:18:59 > 0:19:01that's the reason we just went for it.
0:19:01 > 0:19:04And now we've got it, I don't have any regrets at all.
0:19:04 > 0:19:07- None at all.- So have you got lucky?
0:19:07 > 0:19:09We could say that. You could say that, yeah.
0:19:09 > 0:19:13# Lucky, lucky me
0:19:13 > 0:19:16# Lucky, lucky me... #
0:19:16 > 0:19:19Indeed, it could have been much worse.
0:19:19 > 0:19:23But as it stands, I think Kash and his dad have got themselves a bit of
0:19:23 > 0:19:26a bargain. But with time equalling money in this business,
0:19:26 > 0:19:28they are not hanging around.
0:19:28 > 0:19:33They plan to renovate this property and have it ready in six weeks,
0:19:33 > 0:19:35and are looking to spend 8-10 grand.
0:19:35 > 0:19:38We are looking to go, to do it to a nice spec.
0:19:38 > 0:19:42So we're looking to do a new bathroom, a new kitchen.
0:19:42 > 0:19:43reskim everything.
0:19:43 > 0:19:45New carpets.
0:19:45 > 0:19:48We're getting all the windows changed around the whole property.
0:19:48 > 0:19:51- Oh, good man.- With the heating, the guys have been round already.
0:19:51 > 0:19:53I think they're going to keep the same boiler.
0:19:53 > 0:19:56But we're going to get all new radiators on.
0:19:56 > 0:19:57To modernise it all.
0:19:57 > 0:20:02And then get it all painted, new carpets and that's about it really.
0:20:02 > 0:20:05- And that's us done.- So will you get involved yourself with that side of
0:20:05 > 0:20:08things? Will you project manage this with your dad?
0:20:08 > 0:20:10I'll be coming here every morning,
0:20:10 > 0:20:12getting the builders anything they need
0:20:12 > 0:20:14and making sure they know what they're doing.
0:20:14 > 0:20:17And my dad will be coming over probably in the middle of the day,
0:20:17 > 0:20:20making sure they're here and probably until the end of the day.
0:20:20 > 0:20:23- Just keeping an eye on things? - Yeah, yeah.
0:20:23 > 0:20:24Just keeping an eye on things
0:20:24 > 0:20:26and making sure everyone is doing the right
0:20:26 > 0:20:28thing and everyone is working on what they should be.
0:20:28 > 0:20:31It's a strange configuration, isn't it?
0:20:31 > 0:20:32Yeah, yeah, it is.
0:20:32 > 0:20:35Usually, like, the bathrooms will be downstairs.
0:20:35 > 0:20:39- But obviously the bathroom is already upstairs, so that helps us as well.- Gotcha.
0:20:39 > 0:20:42I don't think we need to have both in the property.
0:20:42 > 0:20:43So we'll just keep the one upstairs.
0:20:43 > 0:20:46Downstairs, we'll probably make it into another room.
0:20:46 > 0:20:49We haven't really thought about what we're going to do here.
0:20:49 > 0:20:50But we'll probably make it into more space.
0:20:50 > 0:20:54Tell me about that hole in the kitchen ceiling.
0:20:54 > 0:20:56To be honest with you, I don't really see that as a big deal.
0:20:56 > 0:20:59Because we're renovating the whole property anyway,
0:20:59 > 0:21:02so we're literally gutting it all out.
0:21:02 > 0:21:04It's all going to be replastered anyway.
0:21:04 > 0:21:05So when the boys are on it,
0:21:05 > 0:21:09we'll just get them to work on that as well and get that sorted.
0:21:09 > 0:21:11OK. What about those steep stairs.
0:21:11 > 0:21:14Even I found it difficult with my dodgy knees, getting up those stairs.
0:21:14 > 0:21:18Do you know what, I thought the same thing when I was going up them.
0:21:18 > 0:21:21We'll have to obviously get them checked out, see if can do anything.
0:21:21 > 0:21:23See if we can make them a little bit...
0:21:23 > 0:21:25Maybe space them out a little bit more to make them a bit...
0:21:25 > 0:21:27Less steep, I don't blame you.
0:21:27 > 0:21:29And when you are coming through the door, it's got to catch the eye,
0:21:29 > 0:21:33- hasn't it?- Obviously if the house is at a good spec,
0:21:33 > 0:21:35the target tenants are professionals.
0:21:35 > 0:21:37So that's what we're trying to target.
0:21:37 > 0:21:41Finding good long-term tenants is not always straightforward,
0:21:41 > 0:21:44but neither is finding a good landlord.
0:21:44 > 0:21:48I'm pleased to hear that Kash is not going to be cutting any corners.
0:21:48 > 0:21:50The way we do it is, we'd rather,
0:21:50 > 0:21:52instead of cutting corners at the beginning,
0:21:52 > 0:21:56we'd rather do it right once and not to cut any corners.
0:21:56 > 0:21:57That's how we work.
0:21:57 > 0:22:00Good on you, I like the way that your ethics are good.
0:22:00 > 0:22:02Kash, I hope it works out for you.
0:22:02 > 0:22:04And I hope you get some great tenants.
0:22:04 > 0:22:05Good luck. Good luck.
0:22:05 > 0:22:09So, Kash and his team are going to finish this house to a high-spec,
0:22:09 > 0:22:11which is the correct way to go.
0:22:11 > 0:22:15What isn't the correct way to go is not viewing the property.
0:22:15 > 0:22:16Naughty, naughty, Kash.
0:22:16 > 0:22:18And don't make it a habit.
0:22:18 > 0:22:21But how high will the spec be to the finish of this house?
0:22:21 > 0:22:23You can find out later in the programme.
0:22:26 > 0:22:31Coming up, Lucy sees a studio flat that's a bit like the Mary Celeste.
0:22:31 > 0:22:35It's almost like somebody's been in here doing the work and gone.
0:22:37 > 0:22:40And I hope Kash didn't abandon ship on this redevelopment,
0:22:40 > 0:22:42no matter how hard it's been.
0:22:42 > 0:22:43Eight weeks of madness, every day.
0:22:43 > 0:22:45Early mornings.
0:22:48 > 0:22:50We are heading back to Fareham,
0:22:50 > 0:22:56where I saw a former fishmonger's, which, well, got up my nose a bit.
0:22:56 > 0:22:58Wow!
0:22:58 > 0:23:01Thank your lucky stars it's not smelly vision,
0:23:01 > 0:23:04because it smells like a fish shop.
0:23:04 > 0:23:07Wow! But that's exactly what we've got.
0:23:08 > 0:23:11One main sort of commercial area here, all the old units.
0:23:11 > 0:23:16You can imagine the ice and all the fish displayed nicely here.
0:23:16 > 0:23:19The shop did offer a crisp and golden opportunity, though.
0:23:19 > 0:23:21Not only for some terrible fish puns,
0:23:21 > 0:23:25but also as a serviceable commercial unit once more, with a little
0:23:25 > 0:23:27renovation, of course.
0:23:27 > 0:23:30However, there were other fish to fry with this lot.
0:23:30 > 0:23:33Out the back and above the shop was a flat which had been empty for decades.
0:23:33 > 0:23:38That might have had something to do with its not having any access.
0:23:38 > 0:23:42I can't see any indication of where a staircase or anything...
0:23:42 > 0:23:43was.
0:23:43 > 0:23:45So a bit of a mystery.
0:23:45 > 0:23:48But the pearl in the oyster was the store room,
0:23:48 > 0:23:50which offered even more potential.
0:23:50 > 0:23:53This was the auction lot that kept on giving
0:23:53 > 0:23:56and professional singer Amanda agreed.
0:23:56 > 0:23:59Already with some property development experience behind her,
0:23:59 > 0:24:04she bought the lot for £134,000, and this was a woman with a plan.
0:24:06 > 0:24:08There's obviously a commercial unit.
0:24:08 > 0:24:11Which I've already got a tenant for at the moment.
0:24:11 > 0:24:13- You have?- Yes, already.
0:24:13 > 0:24:16- Oh, wow.- So that's sort of quite good.
0:24:16 > 0:24:19And the flat upstairs, obviously, is going to be refurbed.
0:24:19 > 0:24:21There's nothing in there at the moment, because it hasn't been used
0:24:21 > 0:24:23for over 30 years.
0:24:23 > 0:24:26And renovate Amanda did.
0:24:26 > 0:24:29Just four months later, the flat was complete and she did a very
0:24:29 > 0:24:31nice job on it, too.
0:24:33 > 0:24:37There was more good news downstairs in the shop, which was quickly
0:24:37 > 0:24:39refitted for use as a fishmonger's and farm shop,
0:24:39 > 0:24:43which meant that both units were successfully tenanted
0:24:43 > 0:24:46and bringing in an income. But that wasn't the conclusion
0:24:46 > 0:24:49of singer Amanda's development plans here.
0:24:49 > 0:24:52She had plenty in store for that store room.
0:24:53 > 0:24:56Well, this is going to be the next project.
0:24:56 > 0:25:00We're planning to build a two-bed house here.
0:25:00 > 0:25:04We've put in the full plans now and just crossing our fingers and hoping
0:25:04 > 0:25:08that we will get what we want.
0:25:08 > 0:25:11Now, we're heading back three years later.
0:25:11 > 0:25:13Has Amanda finally got that house?
0:25:16 > 0:25:18# Don't tell me no
0:25:18 > 0:25:21# Don't tell me...no... #
0:25:21 > 0:25:26Sadly, no was exactly what the planning department said to her
0:25:26 > 0:25:27application to build a house here.
0:25:27 > 0:25:31And there was also more bad news, as a year ago,
0:25:31 > 0:25:35the tenant of the shop had to leave, leaving Amanda in a bit of a pickle.
0:25:37 > 0:25:40But Amanda took this opportunity to do something different,
0:25:40 > 0:25:44as sometimes in property developing, when things don't go your way,
0:25:44 > 0:25:46you have to wake up and smell the coffee.
0:25:51 > 0:25:54Amanda renovated the whole unit
0:25:54 > 0:25:57and turned it into a coffee shop that she runs.
0:25:57 > 0:26:00It must've been a real grind turning this around.
0:26:02 > 0:26:05It's not just the property that's been transformed.
0:26:05 > 0:26:09Amanda hopes this project will also transform people's lives.
0:26:11 > 0:26:14We actually have an aim in the coffee shop,
0:26:14 > 0:26:17by employing people with learning difficulties,
0:26:17 > 0:26:19they come on a training scheme,
0:26:19 > 0:26:23which I'm going to set up, and this will help people with
0:26:23 > 0:26:28learning difficulties train in sort of catering and hospitality,
0:26:28 > 0:26:31customer service, and also build their confidence,
0:26:31 > 0:26:34because a lot of people with learning difficulties
0:26:34 > 0:26:37find it very difficult to communicate with other people.
0:26:37 > 0:26:42And this coffee shop, hopefully, will help them achieve their goals.
0:26:42 > 0:26:45The passion that I had for this was due, really, to my children.
0:26:45 > 0:26:49I've got a daughter with learning difficulties and I've got another
0:26:49 > 0:26:52son that's disabled. And they've really inspired me to do this.
0:26:52 > 0:26:56So... And I saw the struggles that they had, really,
0:26:56 > 0:26:59with finding work and employment,
0:26:59 > 0:27:02and it frustrated me and they were frustrated.
0:27:02 > 0:27:08And they used to get very sort of upset and, you know, felt worthless.
0:27:08 > 0:27:10Which... I didn't want my children to feel like that,
0:27:10 > 0:27:14and I realised that other people with learning difficulties felt the same.
0:27:14 > 0:27:18So, when this opportunity came up to refurbish the shop,
0:27:18 > 0:27:22I grabbed it and, you know, it's here!
0:27:22 > 0:27:23SHE CHUCKLES
0:27:23 > 0:27:28Amanda has turned what could have been a financial burden to an
0:27:28 > 0:27:32intern opportunity, not just for herself but her daughter, Taylor,
0:27:32 > 0:27:33who has started working at the shop.
0:27:34 > 0:27:37This is my first job.
0:27:37 > 0:27:38Because of my disability,
0:27:38 > 0:27:41I feel like people won't take me because of it.
0:27:41 > 0:27:44In the cafe, I do the washing up,
0:27:44 > 0:27:47preparing the cakes and clearing the tables.
0:27:47 > 0:27:50Mum, she thought of the idea.
0:27:50 > 0:27:53I'm just proud of my mum
0:27:53 > 0:27:58and it helped me get a job and work with my mum.
0:27:58 > 0:28:00Well, my daughter in particular, I mean,
0:28:00 > 0:28:02she's come on leaps and bounds.
0:28:02 > 0:28:05She's been good on the till, which really surprised me,
0:28:05 > 0:28:08because money was one of her problems, but she's been really, really good,
0:28:08 > 0:28:12with help, obviously. But she's progressed really well.
0:28:12 > 0:28:15She's been getting up really early in the morning.
0:28:15 > 0:28:18I've been getting up at 5:30, she's been getting up as well, so,
0:28:18 > 0:28:21for her to get up and go to work and want to go to work,
0:28:21 > 0:28:23this is the whole point.
0:28:23 > 0:28:25This is admirable work
0:28:25 > 0:28:27but it hasn't come cheap.
0:28:27 > 0:28:30Overall, it has cost over £30,000.
0:28:30 > 0:28:33I didn't get any funding for the project,
0:28:33 > 0:28:37so I had to fund it myself, and in the process, I had to remortgage
0:28:37 > 0:28:39another property to do that.
0:28:39 > 0:28:42The vision I had originally when I did this, is how it is.
0:28:42 > 0:28:46I look at it and I think, yes, that's how I wanted it.
0:28:46 > 0:28:48And it's turned out really well
0:28:48 > 0:28:51and it was just a struggle with finances and time, really,
0:28:51 > 0:28:55because time was of the essence to get this finished, and to get people
0:28:55 > 0:28:59in the coffee shop buying coffee and cake.
0:28:59 > 0:29:02Well, I'm sure coffee and cake will only be part of the reason that
0:29:02 > 0:29:05two local property experts have come along to give us their thoughts on
0:29:05 > 0:29:07this commercial unit.
0:29:07 > 0:29:10First, let's hear from the auctioneer who sold it.
0:29:10 > 0:29:11The big selling point of this one
0:29:11 > 0:29:14is the fact it's so centrally placed, it's ideally placed.
0:29:14 > 0:29:17You've got the middle of the town centre here, lots of shoppers,
0:29:17 > 0:29:19lots of footfall and lots of activity
0:29:19 > 0:29:20and people passing by all the time.
0:29:20 > 0:29:24So, big selling points for me would be the location and the space,
0:29:24 > 0:29:28definitely. And how modern and fresh and clean that it is.
0:29:28 > 0:29:29So, it's in a good spot
0:29:29 > 0:29:33and hopefully that means Amanda's new project will be a success.
0:29:33 > 0:29:37But if she decides to rent it out in the future, both agents
0:29:37 > 0:29:41thought that she'd get around £1,000 per calendar month for it,
0:29:41 > 0:29:44which is £400 more than it was last valued, so,
0:29:44 > 0:29:47the renovation has certainly added value.
0:29:47 > 0:29:51The flat above has been rented out by the same people who first saw it
0:29:51 > 0:29:53and although Amanda plans to keep
0:29:53 > 0:29:56hold of both properties and further develop the land in the future,
0:29:56 > 0:30:01it will be good to know what her total of £188,000 investment
0:30:01 > 0:30:04is worth three and a half years down the line.
0:30:04 > 0:30:07If we were to offer the freehold, to include the commercial space
0:30:07 > 0:30:09and the flat in one of our upcoming auctions,
0:30:09 > 0:30:11I would anticipate achieving a sale price
0:30:11 > 0:30:13somewhere between £280,000 and £300,000.
0:30:13 > 0:30:17So, looking at the whole unit, I'd recommend a guide price of £300,000,
0:30:17 > 0:30:19especially with the outside space.
0:30:19 > 0:30:22So, that would be a potential profit of £112,000,
0:30:22 > 0:30:25before you take off taxes and fees, of course.
0:30:25 > 0:30:29But is that enough to tempt Amanda into an espresso sale?
0:30:33 > 0:30:35Obviously, with nothing actually
0:30:35 > 0:30:38being built at the back at the moment,
0:30:38 > 0:30:41erm, the value, obviously, I feel
0:30:41 > 0:30:47is about right, but with the prospect of planning going through,
0:30:47 > 0:30:49then I think it would be worth far more.
0:30:50 > 0:30:52You won't be surprised to hear that
0:30:52 > 0:30:56having had refusal from the planning department, guess what?
0:30:56 > 0:31:00That's right, Amanda has another plan brewing.
0:31:00 > 0:31:04I'm hoping that there is going to be two offices there and they're going
0:31:04 > 0:31:08to be for some small businesses, so, you know, again,
0:31:08 > 0:31:09hopefully try and put money back
0:31:09 > 0:31:12into the community and small businesses
0:31:12 > 0:31:14and hopefully they grow and prosper.
0:31:14 > 0:31:15SHE CHUCKLES
0:31:18 > 0:31:23Lucy is in South Norwood in the south-east of London.
0:31:23 > 0:31:27And it has a very important selling feature for anyone that lives in the
0:31:27 > 0:31:30capital, and that is a train station,
0:31:30 > 0:31:34with services into Central London as fast as 12 minutes at peak times.
0:31:34 > 0:31:38So, you've probably guessed that this is a popular spot for commuters
0:31:38 > 0:31:41who work in the city or in nearby Croydon.
0:31:41 > 0:31:44And as an area that's said to be on the up, well,
0:31:44 > 0:31:49I think it just might be a great place to invest in some property.
0:31:49 > 0:31:53The trick with property developing is trying to guess which area might
0:31:53 > 0:31:54be the next big thing.
0:31:54 > 0:31:57So, could South Norwood be it?
0:31:57 > 0:32:00So, this road is a few minutes' walk from Norwood Junction station,
0:32:00 > 0:32:05which is great and it seems like a fairly pleasant residential street
0:32:05 > 0:32:09and actually, I'm quite excited by the guide price of this property I'm
0:32:09 > 0:32:11here to see, £80,000.
0:32:11 > 0:32:14For London? That is virtually unheard of.
0:32:14 > 0:32:17To find anything to buy at that kind of price.
0:32:17 > 0:32:20Admittedly, it is just a studio flat.
0:32:20 > 0:32:22But you can't have everything.
0:32:24 > 0:32:30# Be satisfied with the little you may get
0:32:32 > 0:32:37# You can't have everything... #
0:32:39 > 0:32:41Too right, you can't have everything!
0:32:41 > 0:32:45In fact, with this flat, there's not much.
0:32:45 > 0:32:51So, if that's the bathroom and this is the studio flat, well,
0:32:51 > 0:32:55I'm quite taken aback, actually, by the state of this place.
0:32:55 > 0:32:59I mean, no plaster on the walls, there's building materials everywhere,
0:32:59 > 0:33:01there's saws, someone's wellies,
0:33:01 > 0:33:06it's almost like somebody has been in here doing the work and gone.
0:33:06 > 0:33:07This worries me a little.
0:33:07 > 0:33:09It's like this is the chimney breast.
0:33:09 > 0:33:11It's been taken away.
0:33:11 > 0:33:13Has it been supported?
0:33:13 > 0:33:16I would certainly get somebody in to take a look at that.
0:33:16 > 0:33:18Erm, yeah.
0:33:18 > 0:33:21So, this is going to be your lounge, it's going to be your bedroom.
0:33:21 > 0:33:23You've got to fit a kitchen in here...
0:33:24 > 0:33:26Yeah, quite small!
0:33:28 > 0:33:31# Shock, shock, horror, horror
0:33:31 > 0:33:33# Shock, shock, horror... #
0:33:33 > 0:33:35Lucy is in shock.
0:33:35 > 0:33:36And I don't blame her.
0:33:36 > 0:33:40It's in a desperate state and the work that's been done, well,
0:33:40 > 0:33:42it's going to have to be checked.
0:33:42 > 0:33:45But all is not lost, there are some features remaining.
0:33:45 > 0:33:47A rose amongst the thorns, you could say.
0:33:49 > 0:33:50And then, there's this...
0:33:52 > 0:33:57Well, from studio flat to possible one-bed flat.
0:33:57 > 0:34:00Now, somebody has obviously started building an extension out here,
0:34:00 > 0:34:01which hasn't been finished.
0:34:01 > 0:34:03Now, looking at the size,
0:34:03 > 0:34:07I think this could be the separate bedroom or kitchen/diner the flat is
0:34:07 > 0:34:08crying out for.
0:34:08 > 0:34:11However, before the buyer continues with these works,
0:34:11 > 0:34:15they need to get building control to come round pronto and check this has
0:34:15 > 0:34:18all been done legally and complies with their regulations.
0:34:20 > 0:34:22These foundations need to be checked.
0:34:22 > 0:34:24Are they deep enough?
0:34:24 > 0:34:27Is a damp-proof course in place?
0:34:27 > 0:34:29Do they comply with building regulations?
0:34:29 > 0:34:33And then has the freeholder or freeholders given permission?
0:34:35 > 0:34:37If an extension is allowed,
0:34:37 > 0:34:39then it could make a real difference to this flat.
0:34:43 > 0:34:48Well, it's not all daisies, butterflies and luscious green grass
0:34:48 > 0:34:49out here, is it? Hmm,
0:34:49 > 0:34:52it's going to need a lot of clearing before you can even visualise what
0:34:52 > 0:34:54this could look like.
0:34:54 > 0:34:58Currently, it's more of a dumping ground but the good news is there's
0:34:58 > 0:35:03only access, currently, to this garden, from this ground-floor flat.
0:35:03 > 0:35:08So, that is really in this little flat's favour.
0:35:08 > 0:35:11# Oh, I'm a mess right now
0:35:11 > 0:35:14# Inside out
0:35:14 > 0:35:18# Searching for a sweet surrender
0:35:18 > 0:35:19# But this is not the end... #
0:35:21 > 0:35:25A mess sums up this whole auction lot, and not just the flat itself.
0:35:25 > 0:35:28Apparently, the building was split into different flats
0:35:28 > 0:35:30but not all are finished,
0:35:30 > 0:35:34so there could be a lot of dust and noise. And then there's that garden.
0:35:34 > 0:35:37Is there a right to build an extension on it?
0:35:37 > 0:35:40Hmm, this flat raises a lot of questions.
0:35:40 > 0:35:44But that guide price of £80,000 in London, well,
0:35:44 > 0:35:46it's going to be tempting to find out the answers.
0:35:48 > 0:35:50What does a local estate agent make
0:35:50 > 0:35:54of this small and definitely not perfectly formed
0:35:54 > 0:35:56studio cum one-bedroom flat?
0:35:56 > 0:36:00The flat currently is, well, it's my favourite type of flat, really,
0:36:00 > 0:36:04because it's ripe just to be ripped out and everything redone,
0:36:04 > 0:36:07which is really, really good. Returning it to a studio now,
0:36:07 > 0:36:09doesn't seem like a really good idea,
0:36:09 > 0:36:12just for the simple fact that somebody's already started to try and extend it,
0:36:12 > 0:36:16albeit not very well, so, if it was myself, I would take that down,
0:36:16 > 0:36:20redo it, really look at the plans and see if I want to make any more space,
0:36:20 > 0:36:21extend the property,
0:36:21 > 0:36:25turn it into a one-bedroom flat and get the uprise in the actual value.
0:36:25 > 0:36:28OK, well, issues with the current extension notwithstanding,
0:36:28 > 0:36:32what difference would adding an extra room make on a property that
0:36:32 > 0:36:35was guided at £80,000?
0:36:35 > 0:36:38If it was retained as a studio flat and done up,
0:36:38 > 0:36:41you'd be looking at £140,000.
0:36:41 > 0:36:43If it was done up as a one-bedroom and done very, very nicely,
0:36:43 > 0:36:46I believe it would achieve £175,000.
0:36:46 > 0:36:47And rental values?
0:36:49 > 0:36:51Looking at the flat as a studio flat, if it was done up,
0:36:51 > 0:36:55the rental would be around £650 per month to £700 a month.
0:36:55 > 0:36:58If the property was rented out as a one-bedroom,
0:36:58 > 0:37:02I believe would achieve £750 per month to £800 per month.
0:37:09 > 0:37:13Well, the flat might be small, but there's still a lot of work to do
0:37:13 > 0:37:18to turn this around and make it a lovely, cosy liveable space.
0:37:18 > 0:37:20Still, with the low guide price
0:37:20 > 0:37:23and the potential to make this into a one-bed flat,
0:37:23 > 0:37:26well, I think this could be a great project for somebody.
0:37:26 > 0:37:30Let's find out who that was when this place went under the hammer.
0:37:31 > 0:37:33Who'd like to get me started on this?
0:37:33 > 0:37:3680,000, OK... 81 anywhere?
0:37:36 > 0:37:42Yeah, 81, 82, 83, 84,
0:37:42 > 0:37:4485, 86...
0:37:44 > 0:37:47It was towards the end of a long auction day that this lot had two
0:37:47 > 0:37:51interested bidders. We rejoin at 100,000.
0:37:51 > 0:37:54100,000, 101...
0:37:54 > 0:37:59One more... 101, 102,
0:37:59 > 0:38:02103, 104, 105,
0:38:02 > 0:38:05106, 107...
0:38:05 > 0:38:09It's with you, sir, £106,000. Anybody else?
0:38:10 > 0:38:15If not, 106, for the first... 107, nearly, 108.
0:38:15 > 0:38:20108, 109, 110, 111...
0:38:21 > 0:38:24110 for the first, 110 for the second,
0:38:24 > 0:38:28110 for the third and final time...
0:38:28 > 0:38:30- Sold, 110.- The successful bidder
0:38:30 > 0:38:32getting the flat for £110,000 was Nazeem.
0:38:34 > 0:38:36He runs a property services company,
0:38:36 > 0:38:39so already has a team of tradesmen on hand.
0:38:39 > 0:38:41No bad thing for this project.
0:38:41 > 0:38:45This is his second renovation project with his business partner,
0:38:45 > 0:38:46Neil, who couldn't come along,
0:38:46 > 0:38:49but he might just look a little bit familiar
0:38:49 > 0:38:51to any regular viewers of the show.
0:38:51 > 0:38:53Neil is an estate agent
0:38:53 > 0:38:56who often comes along to have a look at our featured properties.
0:38:57 > 0:39:01Nazeem and Neil might have the property expertise but still,
0:39:01 > 0:39:03they'll have their work cut out.
0:39:03 > 0:39:04Nazeem, congratulations!
0:39:04 > 0:39:07- Thank you very much.- Why did you want to buy this at auction?
0:39:07 > 0:39:10And this would have frightened most of the people out of the auction room!
0:39:10 > 0:39:14It is frightening, when you first walk in, I was frightened myself.
0:39:14 > 0:39:17But when you look around,
0:39:17 > 0:39:22I know what needs to be done to the property and I'm hoping that it will
0:39:22 > 0:39:25not be difficult to do it,
0:39:25 > 0:39:28apart from the extension we've got outside.
0:39:28 > 0:39:30An extension! Is that what you like to call it?
0:39:30 > 0:39:34- Yes.- So, let's call it an extension.
0:39:34 > 0:39:37I mean, does something like that have building regulations?
0:39:37 > 0:39:38That's what we're going to find out first.
0:39:38 > 0:39:40OK, probably not.
0:39:40 > 0:39:44Probably from tomorrow I will find out. But if we haven't got anything,
0:39:44 > 0:39:46then we will knock it down and build it up again.
0:39:46 > 0:39:50Nazeem's also planning to have the area where the chimney breast was removed
0:39:50 > 0:39:52checked by a building inspector,
0:39:52 > 0:39:57and he is clearly determined to make this into a one-bedroom flat.
0:39:57 > 0:40:00And despite only doing one previous renovation project,
0:40:00 > 0:40:02he seems to have it all in hand.
0:40:02 > 0:40:06So, talk me through how this place is going to look.
0:40:06 > 0:40:09Front door here, you're going to walk in, how is the space going to work?
0:40:09 > 0:40:12You've got the bathroom on the other side of this wall.
0:40:12 > 0:40:18- Yeah.- Create a corridor and keep this room as a bedroom...
0:40:18 > 0:40:22and the extension will be kitchen/diner living space.
0:40:22 > 0:40:24Which will be fantastic, out into the garden.
0:40:24 > 0:40:26It will be, walking into the garden.
0:40:26 > 0:40:30So, I'm seeing a very neat, chic, contemporary open-space here?
0:40:30 > 0:40:31It will be, yes.
0:40:31 > 0:40:35Nice kitchen, nice bathroom, ready to sell on, hopefully.
0:40:35 > 0:40:38What sort of money do you think you're going to need to spend
0:40:38 > 0:40:40to get this place shipshape?
0:40:40 > 0:40:43I'm guessing, if we take the extension down
0:40:43 > 0:40:45and need to build it up again,
0:40:45 > 0:40:48the budget will be around £20,000.
0:40:48 > 0:40:50So, that's fairly tight, really.
0:40:50 > 0:40:5220 grand to get this place...
0:40:52 > 0:40:55- Yes.- Your walls, your plastering, your kitchen in here, bathroom...
0:40:55 > 0:40:56New electrics, new plumbing...
0:40:56 > 0:40:58- New bathroom, new kitchen... - A new, you know,
0:40:58 > 0:41:00space you need to create outside.
0:41:00 > 0:41:03It's very tight but I've got a team
0:41:03 > 0:41:08that can turn the whole thing around within hopefully, I'm hoping, six weeks.
0:41:09 > 0:41:13That six weeks, of course, is dependent on the extension.
0:41:13 > 0:41:16If a rebuild is necessary, then that may change things.
0:41:16 > 0:41:19With his building team lined up tomorrow,
0:41:19 > 0:41:22he's certainly not hanging about with this one.
0:41:22 > 0:41:25So, Nazeem, you are looking at this with developer's eyes,
0:41:25 > 0:41:27obviously this is what you're doing a lot of now,
0:41:27 > 0:41:28buying and selling properties,
0:41:28 > 0:41:30but you've not always done this, have you?
0:41:30 > 0:41:32No. I'm a teacher myself,
0:41:32 > 0:41:36but I went into different businesses
0:41:36 > 0:41:40before I ended up in property businesses.
0:41:40 > 0:41:43And I think it's the best thing I've done.
0:41:43 > 0:41:46I'm a plumber and Gas Safe engineer myself.
0:41:46 > 0:41:49- Really?- We formed the company seven months ago
0:41:49 > 0:41:53and we did our first project, which was absolutely fantastic, erm,
0:41:53 > 0:41:55and then this is our second project.
0:41:55 > 0:41:59With the money we gained from the first property,
0:41:59 > 0:42:04we could afford to buy two flats and have extra money to renovate them.
0:42:04 > 0:42:07- Wow! So, you did really well on your first project, I mean...- Yes.
0:42:07 > 0:42:09how much profit did you end up with?
0:42:09 > 0:42:12Erm, we brought the property for £165,000.
0:42:12 > 0:42:14- Yeah?- Spent around £40,000...
0:42:14 > 0:42:17- Yeah?- And we sold it for £330,000.
0:42:17 > 0:42:19Woohoo! So, there you go,
0:42:19 > 0:42:21so has that enabled you to move forward and buy this?
0:42:21 > 0:42:23Yes. It gave us about £125,000.
0:42:23 > 0:42:25That's been a great springboard for you.
0:42:25 > 0:42:29- It is, yes.- Well, good luck with this project and I'm looking forward to seeing how you make
0:42:29 > 0:42:31this into a one-bed flat.
0:42:31 > 0:42:34- Well done.- Thank you very much. - Thank you.- Thank you.
0:42:34 > 0:42:38Well, Nazeem is certainly off to a good property developing start,
0:42:38 > 0:42:43with £125,000 profit on his first renovation project.
0:42:43 > 0:42:47But will this success continue with project number two?
0:42:47 > 0:42:48This one?
0:42:48 > 0:42:52Now, there's a lot of work to do here and will it really only cost
0:42:52 > 0:42:54him 20 grand?
0:42:54 > 0:42:58Join me later in the programme and you can find out how he gets on.
0:43:02 > 0:43:06Well, time waits for no-one and here on Homes Under The Hammer,
0:43:06 > 0:43:08we like to get a move on, too, if we can.
0:43:08 > 0:43:11Yeah, so, have our two remaining buyers lived up to their promises?
0:43:11 > 0:43:13Let's go back and find out.
0:43:13 > 0:43:17Time to head back to the Netherton area of Dudley in the West Midlands,
0:43:17 > 0:43:20where I saw this three-bed mid-terrace.
0:43:20 > 0:43:22It didn't have a standard front door.
0:43:22 > 0:43:24Instead, it had this passageway,
0:43:24 > 0:43:27and then two good-sized reception rooms.
0:43:27 > 0:43:29But my nose could detect signs that
0:43:29 > 0:43:32not everything was straightforward in the kitchen.
0:43:32 > 0:43:35Erm, maybe that's where that smell of damp is coming from.
0:43:35 > 0:43:40That is a big hole. You'd have to get that checked out ASAP.
0:43:40 > 0:43:43And right at the end, a bit of a wet room there.
0:43:43 > 0:43:46That does feel like a bit of an afterthought that's been bolted on.
0:43:46 > 0:43:49That's because up some steep stairs
0:43:49 > 0:43:53was a decent-sized shower room and, of course, the three bedrooms.
0:43:53 > 0:43:56Although he didn't view the property prior to auction,
0:43:56 > 0:43:57warning number one,
0:43:57 > 0:44:01Kash bought this on behalf of his dad's company for 48 grand.
0:44:01 > 0:44:05Buying blind might have been a risk, but since seeing it,
0:44:05 > 0:44:09Kash didn't seem too worried about the work needed to be done here.
0:44:09 > 0:44:12Usually, like, the bathrooms will be downstairs but obviously
0:44:12 > 0:44:14the bathroom's already upstairs, so that helps.
0:44:14 > 0:44:17I don't think we need to have both in the property.
0:44:17 > 0:44:19- OK.- So, we'll just keep the one upstairs.
0:44:19 > 0:44:21Downstairs, we'll probably make into another room.
0:44:21 > 0:44:23We haven't really thought about what we're going to do with it yet.
0:44:23 > 0:44:26OK, tell me about that hole in the kitchen ceiling.
0:44:26 > 0:44:29To be honest with you, I don't really see that as a big deal.
0:44:29 > 0:44:33It's all going to be replastered anyway, so when the boys are on it,
0:44:33 > 0:44:37we'll just get them to work on that as well and get that sorted.
0:44:37 > 0:44:38Kash was keen to get his team in
0:44:38 > 0:44:42and turn this entire property around in six weeks,
0:44:42 > 0:44:43ready for the rental market,
0:44:43 > 0:44:46so let's see if he's managed to freshen this place up,
0:44:46 > 0:44:48just over three months later.
0:44:48 > 0:44:52# Ain't nobody dope as me I'm just so fresh, so clean
0:44:52 > 0:44:54# So fresh and so clean, clean... #
0:44:54 > 0:44:57He has, and instead of losing the wet room, it's been made...
0:44:57 > 0:45:00# So fresh and so clean, clean... #
0:45:00 > 0:45:03There is still plenty of space through in the kitchen,
0:45:03 > 0:45:07so it didn't really make sense to get rid of that extra shower room.
0:45:07 > 0:45:10The rest of the rooms have also had the same refresh.
0:45:10 > 0:45:14They are freshly plastered, painted and new flooring has been laid.
0:45:15 > 0:45:17The modernisation inside is complete,
0:45:17 > 0:45:20with new central heating and electrics.
0:45:20 > 0:45:22It really is looking much improved.
0:45:23 > 0:45:27Plus, my old footballing knees would find it easier getting upstairs,
0:45:27 > 0:45:29thanks to the changes to the staircase.
0:45:31 > 0:45:34With the stairs, there was two options, really.
0:45:34 > 0:45:37We could either knock them all down and rebuild them all again
0:45:37 > 0:45:40but we decided that was going to be a bit too much of a big job,
0:45:40 > 0:45:43so what we decided to do was extend each step,
0:45:43 > 0:45:46so now there's more width on each step,
0:45:46 > 0:45:48so it makes it slightly safer.
0:45:49 > 0:45:51At the top of the stairs is a new...
0:45:51 > 0:45:53# So fresh and so clean, clean... #
0:45:53 > 0:45:56..shower room. So the house still lacks a bath.
0:45:58 > 0:46:01It does offer three neutrally decorated bedrooms.
0:46:01 > 0:46:04And from the outside, it looks much more appealing,
0:46:04 > 0:46:06with a new paint job and new windows.
0:46:08 > 0:46:11Finally, do remember that overgrown back garden?
0:46:11 > 0:46:14I reckon I could get this sorted out in a weekend!
0:46:14 > 0:46:16But I'm not going to. Good luck to you.
0:46:19 > 0:46:22Nice one. I can see all the way to the back now.
0:46:22 > 0:46:24Kash's dad, Amjid, and his team,
0:46:24 > 0:46:28got stuck into this property and did a lot of the grafting themselves.
0:46:28 > 0:46:31They were busy on another project, but once that was done,
0:46:31 > 0:46:34they set themselves a goal of eight weeks to get all the work done here,
0:46:34 > 0:46:36which, now we see the finished article,
0:46:36 > 0:46:38doesn't seem like that much time.
0:46:40 > 0:46:43Eight weeks of madness every day, early mornings,
0:46:43 > 0:46:45late nights, just because, obviously,
0:46:45 > 0:46:50we had to do the electrics and gas and...
0:46:50 > 0:46:52the plastering and, painting,
0:46:52 > 0:46:55and there was a lot of work gone into it,
0:46:55 > 0:46:59so it was quite challenging to get it done in that timescale,
0:46:59 > 0:47:03but we did manage to get it done and it's been successful.
0:47:04 > 0:47:06Kash was project manager on this.
0:47:06 > 0:47:10So has he managed to keep within that budget of eight to ten grand?
0:47:12 > 0:47:16Altogether, erm, we spent just under 10,000,
0:47:16 > 0:47:19about 95, 9,600.
0:47:19 > 0:47:21The windows were the most expensive.
0:47:21 > 0:47:25Obviously, because we had to redo all the electrics and the boiler
0:47:25 > 0:47:28and obviously everything, the door, we had to literally
0:47:28 > 0:47:32redo everything in the house, that's why we've come over budget.
0:47:32 > 0:47:35We could have maybe cut a few corners
0:47:35 > 0:47:37and got the budget slightly less.
0:47:37 > 0:47:40However, we didn't think it's the right way to do it,
0:47:40 > 0:47:45it's best just to do it all once properly and get it all out the way.
0:47:45 > 0:47:48Kash is aiming for long-term tenants here,
0:47:48 > 0:47:51so they've done the right thing by making sure all the big jobs,
0:47:51 > 0:47:56like damp, windows, electrics and heating have all been sorted.
0:47:56 > 0:48:01So any future maintenance should be minimal for some time at least.
0:48:01 > 0:48:05Everything you need is in here - cooker, bathroom, kitchen,
0:48:05 > 0:48:07everything's working, everything's brand-new
0:48:07 > 0:48:10and I believe we'll be able to find some good tenants
0:48:10 > 0:48:13to live in the property, because,
0:48:13 > 0:48:16obviously, they'll like how the house is.
0:48:16 > 0:48:19Well, it's time to find out if two local estate agents agree
0:48:19 > 0:48:21and think this house is ready for the rental market.
0:48:23 > 0:48:26First, let's hear from the agent who saw it last.
0:48:27 > 0:48:29Since I last came to the property,
0:48:29 > 0:48:31I've found that it's improved greatly.
0:48:31 > 0:48:34I think the standard that it's presented is really good,
0:48:34 > 0:48:36very modern and very clean.
0:48:36 > 0:48:38I think the best selling point of this property is the fact he has two
0:48:38 > 0:48:40reception rooms downstairs, which is always useful.
0:48:40 > 0:48:43Plus, there's a bathroom downstairs and upstairs.
0:48:43 > 0:48:45So, you know, it gives the flexibility for a family.
0:48:45 > 0:48:49That's positive from both agents.
0:48:49 > 0:48:52Kash is looking to rent this house out long-term
0:48:52 > 0:48:54but he's not put it on the market yet.
0:48:54 > 0:48:56So what kind of figures could it achieve?
0:48:58 > 0:49:00On the rental market, I would expect to achieve
0:49:00 > 0:49:04£525-£550 per calendar month.
0:49:04 > 0:49:06I feel in the rental market at the moment,
0:49:06 > 0:49:09the property would be very demanded and would achieve
0:49:09 > 0:49:13between £550 and £575 per calendar month.
0:49:13 > 0:49:18That's bang on. Like, I was thinking around about the £550 figure.
0:49:18 > 0:49:21But obviously, depending on the current state of the market,
0:49:21 > 0:49:26it depends what sort of money we'll get, so we'll have to see.
0:49:26 > 0:49:30£550 per calendar month would give Kash and his father
0:49:30 > 0:49:33a healthy yield of over 11%,
0:49:33 > 0:49:35but could the sales figure be even more tempting
0:49:35 > 0:49:38if the profit on the spend was big enough?
0:49:38 > 0:49:40I feel the property in today's market
0:49:40 > 0:49:44would achieve between £90,000-£95,000.
0:49:44 > 0:49:47On the sales market, I would expect to achieve
0:49:47 > 0:49:52somewhere between £95,000 to £100,000 for this property.
0:49:52 > 0:49:55Including legal fees and council tax,
0:49:55 > 0:49:59this house has cost Kash and his dad 62 grand,
0:49:59 > 0:50:02so the top figure does give them a rather tempting
0:50:02 > 0:50:0438 grand potential profit.
0:50:04 > 0:50:06And that's just in three months.
0:50:07 > 0:50:12Maybe we'll try and put it on the market at 100.
0:50:12 > 0:50:15If not, we're in no rush to rent it.
0:50:15 > 0:50:18The only reason we'd look to sell it is obviously
0:50:18 > 0:50:22to sell this one and reinvest and get something else.
0:50:23 > 0:50:27So, they bought blind and it's taken them longer than they thought,
0:50:27 > 0:50:30but in the end, it looks like they're onto a winner.
0:50:30 > 0:50:32That's not too bad, is it, Kash?
0:50:32 > 0:50:36It isn't...it wasn't a bad buy, I guess, it wasn't a bad buy.
0:50:39 > 0:50:41We're heading back to South Norwood,
0:50:41 > 0:50:46where Lucy saw a studio flat that had been stripped back to a shell.
0:50:46 > 0:50:49There wasn't much to see, as it had a bathroom
0:50:49 > 0:50:53and then the studio room where you would need to fit in living space,
0:50:53 > 0:50:56a bed and a kitchen, which would be quite a puzzle.
0:50:56 > 0:50:59But there was another important extra piece outside.
0:51:00 > 0:51:05Well, from studio flat to possible one-bed flat.
0:51:05 > 0:51:09Now, somebody has obviously started building an extension out here,
0:51:09 > 0:51:11which hasn't been finished. Now, looking at the size,
0:51:11 > 0:51:14I think this could be a separate bedroom
0:51:14 > 0:51:17or kitchen diner the flat is crying out for.
0:51:17 > 0:51:20However, before the buyer continues with these works,
0:51:20 > 0:51:22they need to get building control to come round pronto
0:51:22 > 0:51:25and check this has all been done legally
0:51:25 > 0:51:27and complies with their regulations.
0:51:27 > 0:51:32If building control were not happy with it, it might well be torn down.
0:51:32 > 0:51:36Along with the other works required, this was going to be a challenge.
0:51:36 > 0:51:40Facing that challenge were business partners Nazeem and Neil.
0:51:40 > 0:51:44Nazeem was a property manager and former heating engineer,
0:51:44 > 0:51:47while Neil is an estate agent.
0:51:47 > 0:51:52They bought the studio with its dodgy extension for 110,000.
0:51:52 > 0:51:55With their expertise, they were hoping that this,
0:51:55 > 0:51:56their second project together,
0:51:56 > 0:51:59would be as successful as their first.
0:51:59 > 0:52:04We formed the company seven months ago and we did our first project,
0:52:04 > 0:52:06which was absolutely fantastic.
0:52:06 > 0:52:09So, you did really well on your first project. I mean,
0:52:09 > 0:52:10how much profit did you end up with?
0:52:10 > 0:52:13Erm, we brought the property for £165,000.
0:52:13 > 0:52:16- Yeah?- Spent around £40,000...
0:52:16 > 0:52:18- Yeah?- And we sold it for £330,000.
0:52:18 > 0:52:20Woohoo! So there you go.
0:52:20 > 0:52:22So has that enabled you to move forward and buy this?
0:52:22 > 0:52:25Yes. It gave us about £125,000.
0:52:25 > 0:52:28- That's been a great springboard for you.- It is, yes.
0:52:28 > 0:52:31Nazeem and Neil had their team coiled and ready
0:52:31 > 0:52:33to spring into action right away,
0:52:33 > 0:52:37to extend out into the back and turn the small studio into a one-bed.
0:52:37 > 0:52:40But without knowing if this extension had the correct planning
0:52:40 > 0:52:42permissions in place, it was certainly up in the air.
0:52:42 > 0:52:45So even though they wanted the work to be done in six weeks,
0:52:45 > 0:52:48we're back two years later to see what's happened.
0:52:51 > 0:52:55This smart new bathroom is so much better than the grotty green one.
0:52:55 > 0:52:58But what about next door? Do we have one room or two?
0:53:00 > 0:53:02Well, we have two, but sadly no extension.
0:53:02 > 0:53:07The back area has been divided off to create a living sleeping area.
0:53:07 > 0:53:10A window in a side wall allows some daylight in.
0:53:10 > 0:53:13Access from the front to the back of the flat
0:53:13 > 0:53:14has been created with this hallway,
0:53:14 > 0:53:17and at the back, there's a small kitchen.
0:53:18 > 0:53:20Nazeem was working on another project,
0:53:20 > 0:53:24but his business partner, Neil, who is an estate agent, came along.
0:53:24 > 0:53:28As we mentioned earlier, Neil often comes along to assess properties
0:53:28 > 0:53:31and give his valuation on the show,
0:53:31 > 0:53:32so you might think he obeyed
0:53:32 > 0:53:35all those golden Homes Under The Hammer rules.
0:53:35 > 0:53:39You know, the ones about researching and reading the legal pack?
0:53:39 > 0:53:42What really went wrong was we didn't really do our research,
0:53:42 > 0:53:43if I'm absolutely honest.
0:53:43 > 0:53:45We should have looked at the legal pack
0:53:45 > 0:53:49and we found that when we got building regs in
0:53:49 > 0:53:51to have a look at the unfinished extension,
0:53:51 > 0:53:53which we wanted to complete,
0:53:53 > 0:53:55they did their investigations and found that
0:53:55 > 0:53:58there was no planning permission for the entire building.
0:53:58 > 0:53:59So this whole building has no permission
0:53:59 > 0:54:01to be divided up into flats.
0:54:01 > 0:54:04They were going to take enforcement action
0:54:04 > 0:54:08and ask all the leaseholders maybe to turn this back into one property,
0:54:08 > 0:54:10but they felt with different leaseholders
0:54:10 > 0:54:13and different mortgage companies, that would not be feasible.
0:54:13 > 0:54:16So, they've allowed us to keep it as it is, but because of that,
0:54:16 > 0:54:18we weren't able to finish our extension.
0:54:18 > 0:54:20Good on you for fessing up, Neil,
0:54:20 > 0:54:22but who would have seen that one coming?
0:54:22 > 0:54:26This shows that even some experts can get caught out.
0:54:26 > 0:54:28No-one gets it right all the time,
0:54:28 > 0:54:30and it sounds like Neil and Nazeem are looking on
0:54:30 > 0:54:34this second renovation experience philosophically.
0:54:34 > 0:54:36So, this one definitely has been a bit of a learning curve.
0:54:36 > 0:54:41I think being so successful with our last project and a few others
0:54:41 > 0:54:44that we've done, we thought, you know, we could just go in,
0:54:44 > 0:54:46buy it, flip it and it would be absolutely fine.
0:54:46 > 0:54:49But I think we really needed to look a little bit more at the paperwork
0:54:49 > 0:54:51when posting at auction, and so,
0:54:51 > 0:54:54that definitely is something that we would do in future.
0:54:54 > 0:54:57That's why we always say you should read the legal pack.
0:54:57 > 0:55:01The delays with planning have meant it's taken almost two years longer
0:55:01 > 0:55:04than they wanted to finish the project.
0:55:04 > 0:55:07This property actually cost us a lot more time than it did money.
0:55:07 > 0:55:10The original plan was to spend about £20,000-£30,000,
0:55:10 > 0:55:13to redesign the flat and build the extension.
0:55:13 > 0:55:15We weren't able to do that,
0:55:15 > 0:55:18so we actually saved a lot of money by not doing the extension.
0:55:18 > 0:55:21So we only spent, I think it was about £12,000 we spent in the end,
0:55:21 > 0:55:23just to get the property up to a good standard.
0:55:23 > 0:55:26I'm happy with the finish as it is at the moment,
0:55:26 > 0:55:29but I'm really disappointed we didn't get that planning permission
0:55:29 > 0:55:31to do what we really wanted.
0:55:31 > 0:55:34That would've been a lot more profit for us and I think the space
0:55:34 > 0:55:36of the flat would've been a lot nicer,
0:55:36 > 0:55:37it would have been a lot easier to sell.
0:55:37 > 0:55:40I think with this layout, and the space,
0:55:40 > 0:55:43I think it does maybe hinder our sales prospects.
0:55:43 > 0:55:46So, I'm actually quite looking forward to some other estate agents
0:55:46 > 0:55:49coming and looking around and giving their advice on valuation.
0:55:49 > 0:55:51I'll be quite interested to see what they say.
0:55:53 > 0:55:55Yes, this is where Neil would normally step in
0:55:55 > 0:55:58and do some valuations, but this time,
0:55:58 > 0:56:01the shoe is on the other foot and we've invited two other agents
0:56:01 > 0:56:03to get their thoughts on this flat.
0:56:03 > 0:56:05First, the agent who saw it last time.
0:56:07 > 0:56:10For me, because it's now a studio flat,
0:56:10 > 0:56:12I think that the internal walls,
0:56:12 > 0:56:15I would've tried to not have put them up, just have one big space
0:56:15 > 0:56:17with a separate bathroom, as a studio,
0:56:17 > 0:56:20so people could use the space as they see fit.
0:56:20 > 0:56:21It feels a little bit small.
0:56:21 > 0:56:24I think the property's layout is a mistake.
0:56:24 > 0:56:27The walls are unnecessary. There's so much space in the hallway
0:56:27 > 0:56:29and the kitchen that if you combined those
0:56:29 > 0:56:31with the really small studio room,
0:56:31 > 0:56:33you'd actually have quite a big studio flat
0:56:33 > 0:56:35with a nice open plan feel.
0:56:36 > 0:56:38OK, so, they are not fans, fair enough.
0:56:38 > 0:56:40But maybe open plan isn't for everyone.
0:56:40 > 0:56:44- What does Neil think? - In hindsight, looking back,
0:56:44 > 0:56:47I think I definitely would have kept an open plan studio.
0:56:47 > 0:56:50I think for an investor, it would have rented much more easily
0:56:50 > 0:56:53and I think it may have been more appealing to a buyer as well.
0:56:53 > 0:56:56We partitioned it out because we thought we were going to
0:56:56 > 0:56:57make it into a one-bed.
0:56:57 > 0:57:01But, you know, as long as we make a profit, I'm quite happy.
0:57:01 > 0:57:03OK, so, now we're talking about money,
0:57:03 > 0:57:06could Neil and Nazeem be looking at a profit here?
0:57:06 > 0:57:10They have spent a total of 122,000.
0:57:10 > 0:57:12I would place the resale value
0:57:12 > 0:57:17between £150,000 and £160,000 for it as it is.
0:57:17 > 0:57:21The resale value of this property would be £165,000.
0:57:21 > 0:57:25I think the agents have got the values pretty much spot on.
0:57:25 > 0:57:28It's exactly what I think I would expect and, yeah,
0:57:28 > 0:57:30I think that's about right.
0:57:30 > 0:57:35Neil and Nazeem have already agreed to sell the property for £160,000,
0:57:35 > 0:57:40so they have made a pre-tax and fees profit of around £38,000,
0:57:40 > 0:57:41which isn't bad at all,
0:57:41 > 0:57:46especially as things haven't exactly gone to plan on this project.
0:57:46 > 0:57:47I think the experience of this
0:57:47 > 0:57:49definitely hasn't put me off auction.
0:57:49 > 0:57:51It's just really taught me that I need to look a little bit more
0:57:51 > 0:57:54carefully at the legal pack, but, you know, I should have known that,
0:57:54 > 0:57:56being in the property industry anyway.
0:57:56 > 0:57:58So, I can take this one on the chin.
0:57:58 > 0:58:00We've got a fair few other projects in the pipeline,
0:58:00 > 0:58:02so we're doing quite well with the property development side
0:58:02 > 0:58:05and I continue my day job as an estate agent.
0:58:05 > 0:58:07So, we might see Neil again on Hammer in the future,
0:58:07 > 0:58:10but will it be with a new project or as an estate agent,
0:58:10 > 0:58:12valuing somebody else's property?
0:58:12 > 0:58:14Only time will tell.
0:58:19 > 0:58:21There are lots of different experiences
0:58:21 > 0:58:25when buying your property at auction and we've got lots of stories here.
0:58:25 > 0:58:27We have, so make sure you join us next time
0:58:27 > 0:58:30- for more Homes Under The Hammer. - Goodbye.- Goodbye.