0:00:02 > 0:00:04Hello and welcome to the show. Now, when it comes to buying property
0:00:04 > 0:00:07at auction, not everyone considers it
0:00:07 > 0:00:08a viable option.
0:00:08 > 0:00:12Yeah, but the process is more simple than you think.
0:00:12 > 0:00:14So why not pop down to your local auction house
0:00:14 > 0:00:15and see what's on offer?
0:00:42 > 0:00:45Bidding at auction can be a surreal experience.
0:00:45 > 0:00:46One raise of the hand, and, well,
0:00:46 > 0:00:49- you could bag the property of your dreams.- Uh-huh.
0:00:49 > 0:00:52It can be as simple as that. But buyer beware,
0:00:52 > 0:00:54there are all sorts of things you need to consider.
0:00:54 > 0:00:59Yeah, what did the buyers on today's show go for? Let's have a look.
0:00:59 > 0:01:03In Newcastle-under-Lyme, my senses take a battering.
0:01:03 > 0:01:07What I haven't talked about is the overwhelming smell.
0:01:09 > 0:01:11From smells to trains.
0:01:11 > 0:01:14This one-bed flat in Richmond has a noisy neighbour.
0:01:14 > 0:01:18You're looking from your bed straight out onto the train track.
0:01:19 > 0:01:21And from trains to stains.
0:01:21 > 0:01:24There's plenty of them in this Nottingham three-bed semi.
0:01:24 > 0:01:25There's a bit of staining, there's
0:01:25 > 0:01:29a bit of a smell as well, which isn't very pleasant at all.
0:01:30 > 0:01:33All these properties have been sold at auction.
0:01:33 > 0:01:35We'll find out who bought them and what they paid for them
0:01:35 > 0:01:37when they went under the hammer.
0:01:37 > 0:01:39You bought it, sir, well done.
0:01:42 > 0:01:46This is Chesterton, a small village in the borough of
0:01:46 > 0:01:48Newcastle-under-Lyme, Staffordshire.
0:01:48 > 0:01:51A former mining town until the collieries' closure
0:01:51 > 0:01:52in the late '80s,
0:01:52 > 0:01:55it is also the birthplace of singer-songwriter
0:01:55 > 0:01:58and coal miner's daughter Jackie Trent.
0:01:58 > 0:02:00She wrote for many of the great,
0:02:00 > 0:02:04from Petula Clark to Dean Martin, but is perhaps best remembered
0:02:04 > 0:02:09for co-writing the theme tune to much-loved TV soap Neighbours.
0:02:09 > 0:02:12So I wonder what the neighbours will be like around here.
0:02:12 > 0:02:14Well, judging by the gardens, they're neat and tidy,
0:02:14 > 0:02:19that's a good start. I'm here to see a three-bed end terrace.
0:02:19 > 0:02:23Guide price, £65,000. Here it is.
0:02:24 > 0:02:30Ah, well. Our garden, not quite as neat and tidy.
0:02:30 > 0:02:32Oops, doesn't bode very well.
0:02:38 > 0:02:42So, well, yes, as predicted, it doesn't look like it's in that
0:02:42 > 0:02:45brilliant a condition, but what have we got?
0:02:45 > 0:02:47Central heating for a start, which is always a good point.
0:02:47 > 0:02:49Stairs up to your bedrooms there.
0:02:49 > 0:02:52And a fairly nice-sized little entrance area.
0:02:52 > 0:02:55Your main living room off to the right.
0:02:55 > 0:02:58Again, definitely needs a bit of work.
0:02:58 > 0:02:59But it's spacious, which is good.
0:03:01 > 0:03:05Likewise in here, I mean, a really good-sized kitchen.
0:03:05 > 0:03:09I think that's one of those old-fashioned larders.
0:03:09 > 0:03:12So that's a bit of extra space there.
0:03:12 > 0:03:14Your initial thoughts are, "Would you knock this wall down?
0:03:14 > 0:03:17"Maybe incorporate that little bit of extra space?"
0:03:17 > 0:03:19I think probably not cos this is big enough as it is.
0:03:19 > 0:03:21And you're going to have to factor in the fact that
0:03:21 > 0:03:23if you did that, you'd have to move the boiler,
0:03:23 > 0:03:26and that's going to be a bit of a devil of a job and extra expense.
0:03:26 > 0:03:28I don't think you necessarily need it.
0:03:28 > 0:03:30Because yes, again, space, space, space.
0:03:30 > 0:03:32It's got it by the bucket-load. Hm, fab.
0:03:32 > 0:03:35- WHISPERS:- Just needs a few more...
0:03:36 > 0:03:38..units and stuff.
0:03:39 > 0:03:41Well, you can't have everything, I suppose.
0:03:41 > 0:03:44Yes, it definitely is in need of some upgrading,
0:03:44 > 0:03:47but as expected with an ex-local authority house like this,
0:03:47 > 0:03:51the room sizes are great, especially in that kitchen.
0:03:53 > 0:03:55Let's have a look upstairs to see what it's like.
0:03:57 > 0:04:02So, upstairs, and three decent-sized bedrooms, a bathroom.
0:04:02 > 0:04:05It's not huge but it's in the right place and all the pipes
0:04:05 > 0:04:07and everything are all there for you to make life a little bit easier.
0:04:07 > 0:04:12Um, so all in all, what we've got here is a really nice, solid house.
0:04:12 > 0:04:14Now, at this point,
0:04:14 > 0:04:18if you are at all squeamish or you're in the middle of eating
0:04:18 > 0:04:22a biscuit with your coffee, you might want to fast forward.
0:04:22 > 0:04:25Or just turn the TV off because it's going to get a bit...
0:04:25 > 0:04:26What's the word?
0:04:29 > 0:04:31Let's just assume you've done that now.
0:04:31 > 0:04:33Yes, it's going to get smelly because
0:04:33 > 0:04:38what I haven't talked about is the overwhelming smell.
0:04:38 > 0:04:43This is a house which has had probably dogs or whatever
0:04:43 > 0:04:47running around doing whatever they do inside the house,
0:04:47 > 0:04:52so you have got a house that is literally saturated
0:04:52 > 0:04:56with pee and poo.
0:04:56 > 0:04:59I mean, there's no other way of saying it.
0:04:59 > 0:05:02Now, you've got a big problem. It's gone into the floorboards.
0:05:02 > 0:05:03Look at this.
0:05:03 > 0:05:05Now, you think you could just maybe put a bit of bleach over
0:05:05 > 0:05:07the top of that and everything will be fine.
0:05:07 > 0:05:09No, it seeps into the wood.
0:05:09 > 0:05:11It's there, it's going to stay there smelling.
0:05:11 > 0:05:12It's a really serious issue.
0:05:12 > 0:05:15And clearly somebody walking around this...
0:05:15 > 0:05:18The majority of people, I would imagine, would be seriously put off.
0:05:18 > 0:05:20So if you're a developer, you're an investor,
0:05:20 > 0:05:22is this the sort of thing you should go for?
0:05:22 > 0:05:25Well, you just need to factor in time, money and expense.
0:05:25 > 0:05:27Get rid of the floorboards where they're damaged,
0:05:27 > 0:05:30get rid of the skirting boards,
0:05:30 > 0:05:37industrial quantities of biological cleaners and disinfectant,
0:05:37 > 0:05:41endless hours of scrubbing, and eventually, you'd end up
0:05:41 > 0:05:44with a house that smelled like a rose garden.
0:05:45 > 0:05:48Well, I have to say, a rose garden feels a million miles away
0:05:48 > 0:05:50at the moment.
0:05:50 > 0:05:54# I beg your pardon
0:05:54 > 0:05:56# I never promised you a rose garden... #
0:05:58 > 0:06:00Time for some fresh air, I think.
0:06:01 > 0:06:04Well, at the back of the property, a little lean-to area with
0:06:04 > 0:06:07a couple of useful storage areas - that one a storage area,
0:06:07 > 0:06:11that one a loo. So that's good. And then out into the back garden.
0:06:11 > 0:06:14Well, no surprises, it is in a bit of a state.
0:06:14 > 0:06:18But it's a good size. And sort this out, and you would
0:06:18 > 0:06:22definitely have a nice sort of play area for the kids or whatever.
0:06:22 > 0:06:26For now, I don't think I'll venture into that grass cos,
0:06:26 > 0:06:30judging by the state of the house, I just don't know what I might find.
0:06:30 > 0:06:33Yes, "Tread carefully," would be my advice to the person
0:06:33 > 0:06:36undertaking the clean-up of this garden.
0:06:38 > 0:06:42We invited along a local estate agent to get his opinion on this
0:06:42 > 0:06:43well proportioned,
0:06:43 > 0:06:46but shall we say pungent property?
0:06:50 > 0:06:52First impressions of the property,
0:06:52 > 0:06:54it does need
0:06:54 > 0:06:56a lot of work doing throughout the property internally,
0:06:56 > 0:06:58but they're good, solid houses and it's got
0:06:58 > 0:07:01good benefits of the off-road parking at the front
0:07:01 > 0:07:03and garden to the rear.
0:07:03 > 0:07:06I think the condition of the property as it is at the moment
0:07:06 > 0:07:10will put off some buyers, but I think the likelihood of the buyers
0:07:10 > 0:07:12who will be interested in this property
0:07:12 > 0:07:14will be able to look beyond that.
0:07:14 > 0:07:18The guide on this property was £65,000,
0:07:18 > 0:07:22so would the potential profit be one to, ahem, be sniffed at?
0:07:22 > 0:07:23Once fully refurbished,
0:07:23 > 0:07:27I would expect the property to sell in the region of £90,000.
0:07:27 > 0:07:30So if you got it for the guide price and were careful with
0:07:30 > 0:07:34the refurb budget, you could come up smelling of roses on this one.
0:07:34 > 0:07:36But what about rentals?
0:07:36 > 0:07:39I would expect the property to rent between £450 per calendar month
0:07:39 > 0:07:42and £475 per calendar month.
0:07:43 > 0:07:47Well, apart from the pong, this is a really good house.
0:07:47 > 0:07:49It's solid, nice-sized rooms,
0:07:49 > 0:07:52yeah, and it would make a great family home or a good investment.
0:07:52 > 0:07:56So who had the rubber gloves at the ready?
0:07:56 > 0:07:59Let's find out when it went under the hammer.
0:07:59 > 0:08:03Lot nine is a three-bedroomed end townhouse,
0:08:03 > 0:08:05gas central heating, double glazing,
0:08:05 > 0:08:07off-road parking.
0:08:07 > 0:08:09I'll say 60 to start me here.
0:08:09 > 0:08:1260 bid, thank you. At £60,000.
0:08:12 > 0:08:16I'll go in ones. 61, can see you now. At 60,000. 61 now.
0:08:16 > 0:08:21At 60. 61. 62. 63.
0:08:21 > 0:08:2264.
0:08:23 > 0:08:27At £64,000. At £64,000.
0:08:27 > 0:08:2965, anywhere else?
0:08:29 > 0:08:3165. seated, at 65.
0:08:31 > 0:08:3566? 66, anywhere else?
0:08:35 > 0:08:39At £65,000, and selling it, then, for the first time.
0:08:39 > 0:08:42£65,000 for the second time.
0:08:42 > 0:08:45Third and final time at £65,000.
0:08:45 > 0:08:47You bought it, sir, well done.
0:08:51 > 0:08:56Getting the property for bang on the guide price of £65,000 was Mike.
0:08:56 > 0:08:58He's brought along daughter Hayley, who's going to be helping
0:08:58 > 0:09:00with the renovation.
0:09:00 > 0:09:02But this isn't their first property renovation together,
0:09:02 > 0:09:06having bought three previously, two of which Mike now rents out.
0:09:08 > 0:09:10I met up with the duo back at the house to find out what
0:09:10 > 0:09:13they had in store for their new venture.
0:09:13 > 0:09:15Hayley, Mike, great to meet you both.
0:09:15 > 0:09:17- BOTH:- And you.- Congratulations.
0:09:17 > 0:09:20- Thank you.- So, tell me why you wanted to buy this house.
0:09:20 > 0:09:25Well, we were looking for something in this kind of area where we
0:09:25 > 0:09:28could maybe, you know, make a little bit, add a bit of value too,
0:09:28 > 0:09:31and this one came up at auction.
0:09:31 > 0:09:35We looked at a few others, but this was probably our favourite one
0:09:35 > 0:09:38- out of the four or five we saw. - Right.
0:09:38 > 0:09:40It is in a bit of a state at the moment,
0:09:40 > 0:09:43but we think potentially it can look nice.
0:09:43 > 0:09:45So, what do you do when you're not doing this, Mike?
0:09:45 > 0:09:49I do odd jobs for people,
0:09:49 > 0:09:54and also I help a friend who does alarm systems and satellite systems.
0:09:54 > 0:09:56- OK.- But I just sort of help out.
0:09:56 > 0:09:58But you'll be fitting this around that.
0:09:58 > 0:09:59I'll be fitting this around that.
0:09:59 > 0:10:01And financially, how is it working, then?
0:10:01 > 0:10:03Are you in this as a joint venture?
0:10:03 > 0:10:05No, it's you and my mum, isn't it, that are together.
0:10:05 > 0:10:06- I'm just the helper.- Right.- Yeah.
0:10:06 > 0:10:09- So you were drafted in as sort of cheap labour, were you?- Yes.
0:10:09 > 0:10:12Free labour. There's nothing cheap about it. It's free.
0:10:12 > 0:10:15You'll get as much coffee as you like.
0:10:15 > 0:10:17There must be an upside for you, though, is there?
0:10:17 > 0:10:19Oh, it's just... Keeps me busy.
0:10:19 > 0:10:21I'm on maternity leave at the minute, so it'll keep me
0:10:21 > 0:10:24- out of the house.- Oh, great, so when was your little baby born?
0:10:24 > 0:10:28- Oh, two months ago.- Oh, really? Oh, wow. What's he called?- George.
0:10:28 > 0:10:30Fantastic. And is he helping you out as well?
0:10:30 > 0:10:33He will be. Well, he'll be sitting in the room, anyway.
0:10:35 > 0:10:38So with the help of Baby George, Mike and Hayley
0:10:38 > 0:10:40will gut this place from top to bottom,
0:10:40 > 0:10:44installing a new kitchen, bathroom, as well as redecorating throughout.
0:10:44 > 0:10:47They will also have to tackle that overgrown back garden.
0:10:47 > 0:10:50And at the front of the house, they plan to drop the kerb to
0:10:50 > 0:10:52allow for off-street parking.
0:10:54 > 0:10:57Semi-retired now, Mike plans to complete the renovations over
0:10:57 > 0:11:00the course of six months around his part-time work schedule,
0:11:00 > 0:11:05and with a budget of £10,000, with a £5,000 contingency.
0:11:06 > 0:11:11Now on to something that might not be as easy to correct.
0:11:11 > 0:11:14You are struck by, amongst other things,
0:11:14 > 0:11:18- a rather overpowering smell, aren't you?- Yes. Oh, gosh, yeah.
0:11:18 > 0:11:21It has had about a gallon of disinfectant on it but...
0:11:21 > 0:11:23- This is after that?- This is the improved version, yeah, yeah.
0:11:23 > 0:11:26- So what was it like before? - Eye-watering.
0:11:26 > 0:11:29Yeah, I was going to say exactly the same thing.
0:11:29 > 0:11:32Joking aside, it is quite a hard thing to get rid of, isn't it?
0:11:32 > 0:11:33The smell.
0:11:33 > 0:11:36What have you found has worked
0:11:36 > 0:11:39and what are your hopes from this point on?
0:11:39 > 0:11:42Well, obviously disinfectant,
0:11:42 > 0:11:44but in some areas, obviously,
0:11:44 > 0:11:47the skirting board is going to be coming off,
0:11:47 > 0:11:49- and that's going to be thrown away. - Yeah.
0:11:49 > 0:11:54There may be areas of floorboarding that'll have to be chopped out,
0:11:54 > 0:11:58and we'll see where we go from there.
0:11:59 > 0:12:02Oh, I don't envy them the task.
0:12:02 > 0:12:05Mike retired from his full-time job in admin as he wanted to be
0:12:05 > 0:12:06away from a desk.
0:12:07 > 0:12:10Well, he certainly achieved that.
0:12:10 > 0:12:12I do sort of odd jobs for people,
0:12:12 > 0:12:16and this is just like a gap filler, really.
0:12:16 > 0:12:18So I'll be doing this when I'm not busy doing other things.
0:12:18 > 0:12:22And then to sell it on afterwards or to rent it out?
0:12:22 > 0:12:25I'd like to sell it on, but I'm
0:12:25 > 0:12:27- keeping my options open on that one.- Yes.
0:12:27 > 0:12:29- Right, OK, see how it goes. - Yeah, see how it goes.
0:12:29 > 0:12:32- Well, listen, congratulations. Good luck with it.- Thank you very much.
0:12:32 > 0:12:36- I'm looking forward to seeing how you get on.- Thank you. Thanks.
0:12:36 > 0:12:39So, Mike and Hayley, ready to take on the pong of this
0:12:39 > 0:12:44particular property. And they can see there's money to be made.
0:12:44 > 0:12:46And it is one of those great tips, isn't it?
0:12:46 > 0:12:49If you can find a place that instantly people perhaps
0:12:49 > 0:12:52would have been put off by, there is possibly an opportunity for you.
0:12:52 > 0:12:55You can find out how they get on later in the show.
0:12:58 > 0:13:02# We are fresh strawberries
0:13:02 > 0:13:06# Fresh burst of red strawberries... #
0:13:06 > 0:13:09The London Borough of Richmond upon Thames has many
0:13:09 > 0:13:13affluent areas, and one of these is Strawberry Hill.
0:13:13 > 0:13:16Like many suburbs of London, it was the arrival of the railway
0:13:16 > 0:13:19that brought about its very existence.
0:13:23 > 0:13:26The area is named after Strawberry Hill House,
0:13:26 > 0:13:29a villa built by Horace Walpole.
0:13:29 > 0:13:32Now, he was a few decades ahead of his Victorian peers
0:13:32 > 0:13:36in his passion for Gothic architecture. And this, well,
0:13:36 > 0:13:38it holds a bit of a special place in my heart
0:13:38 > 0:13:40because I got married here.
0:13:43 > 0:13:47Oh, yes, a fairytale location for a day I will never forget.
0:13:47 > 0:13:50But moving on now, the location of the property I'm here to see
0:13:50 > 0:13:53is slightly - ha - less romantic.
0:13:53 > 0:13:56It's a ground floor one-bed flat in this building which sits
0:13:56 > 0:13:59alongside a busy train line and level crossing.
0:13:59 > 0:14:03Not exactly a recipe for peace and quiet, but if you want to
0:14:03 > 0:14:08get into Central London in a hurry, this could be the ideal place.
0:14:08 > 0:14:12Anyway, the guide price for the flat, well, £200,000 plus,
0:14:12 > 0:14:14so let's see what you get for your money.
0:14:19 > 0:14:23Now, inside... Ooh, I'm getting a good feeling about this!
0:14:23 > 0:14:27It's feeling all rather new. You've got lovely storage there.
0:14:27 > 0:14:29Oh, I do spy a little bit of damp down there,
0:14:29 > 0:14:31and it's sort of wet to the touch.
0:14:31 > 0:14:33I wouldn't worry about it too much, but
0:14:33 > 0:14:34I'd certainly get that looked at.
0:14:34 > 0:14:37A bedroom through here, which we'll come back to.
0:14:37 > 0:14:40And, ooh, the bathroom, fantastic.
0:14:40 > 0:14:43Rather snazzy blue lights along the bottom of the bath.
0:14:43 > 0:14:46I mean it all looks like it's in really good condition.
0:14:46 > 0:14:51You could probably instantly rent a place like this out. I mean, look.
0:14:51 > 0:14:53It's even got the furniture in situ.
0:14:53 > 0:14:56Gosh, it even looks really comfortable as well.
0:14:56 > 0:14:58Anyway, I won't sit down, otherwise I'll never get up.
0:14:58 > 0:15:00Storage, again, which is fantastic.
0:15:00 > 0:15:03Every inch of this flat has been thought out,
0:15:03 > 0:15:06which is really what you want when you've got a small property.
0:15:06 > 0:15:10Now, it's an irregular shape, but it doesn't not work, funnily.
0:15:10 > 0:15:14And tucked around here, you've got the black, shiny kitchen.
0:15:14 > 0:15:18But you know, it really does work, and it's really functional.
0:15:18 > 0:15:21Outside, you've got a lovely little view of, well,
0:15:21 > 0:15:23it's a view of a bike store.
0:15:23 > 0:15:26Beyond that, you've got the train line, but we'll come back to that.
0:15:26 > 0:15:29So this flat, it does what it says on the tin.
0:15:31 > 0:15:34So here's your one bedroom, in your one-bedroom flat of course.
0:15:34 > 0:15:36But what I really like is the way that
0:15:36 > 0:15:38the furniture demonstrates the space.
0:15:38 > 0:15:40And it is quite spacious, actually.
0:15:40 > 0:15:43I know it's an irregular shape, just like next-door
0:15:43 > 0:15:45but it seems to work, weirdly.
0:15:45 > 0:15:47Now, you could put a desk here.
0:15:47 > 0:15:49There's certainly enough room for that.
0:15:49 > 0:15:52Bit of a downside, though, is that view out there.
0:15:52 > 0:15:56You're looking from your bed straight out onto the train track.
0:15:56 > 0:15:58But what I do like is that you can wake up to the
0:15:58 > 0:16:03sound of the 8.20 in time to hop onto the 8.30,
0:16:03 > 0:16:06ready for work. Perfect.
0:16:06 > 0:16:09# Catch me if you can
0:16:09 > 0:16:12# Catch me if you can
0:16:12 > 0:16:14# Catch me if you can... #
0:16:14 > 0:16:19Waking up to this commuter cacophony every morning might not be
0:16:19 > 0:16:21everyone's idea of a dawn chorus.
0:16:21 > 0:16:23But with the train station next door
0:16:23 > 0:16:26and journey times into Waterloo around 30 minutes,
0:16:26 > 0:16:30this flat ticks all the boxes for a professional working in the city.
0:16:31 > 0:16:35What does the local property agent think about what's on offer here?
0:16:40 > 0:16:41It's a fantastic property.
0:16:41 > 0:16:44There's minimal amount of work that needs to be done to it,
0:16:44 > 0:16:47and they could turn it around really quickly to either resell or let it.
0:16:49 > 0:16:53How much does she think it would take to turn this flat around?
0:16:53 > 0:16:55To get this property back up to its best, it really depends how
0:16:55 > 0:16:57much you want to spend.
0:16:57 > 0:16:59You could obviously spend thousands on expensive paints,
0:16:59 > 0:17:00fixtures and fittings.
0:17:00 > 0:17:04In my opinion, it would need a good quality emulsion throughout,
0:17:04 > 0:17:08keeping the colours plain, and some simple, smart fixtures and fittings.
0:17:10 > 0:17:11And once renovated,
0:17:11 > 0:17:15how much could this flat be worth on the rental and sales market?
0:17:15 > 0:17:18On completion of the work, I'd recommend marketing the property for
0:17:18 > 0:17:22lettings at £1,000 to £1,100 per calendar month,
0:17:22 > 0:17:27and for sales, £239,950.
0:17:28 > 0:17:31Well, this flat's in a great area and it's in good condition.
0:17:31 > 0:17:34A little bit of elbow grease and a bit of paint and I think it could be
0:17:34 > 0:17:39ready to go. Although, I would get that small area of damp checked out.
0:17:39 > 0:17:42I don't think you need to spend much more than about £1,000 to get this
0:17:42 > 0:17:45ready for rental or for the sales market.
0:17:45 > 0:17:48And who is not going to love Strawberry Hill?
0:17:48 > 0:17:53Let's see what happened when this flat went under the hammer.
0:17:53 > 0:17:55A ground floor flat, this one,
0:17:55 > 0:17:57as you see it in your catalogue.
0:17:57 > 0:17:59Start me around 210 for it, if you will.
0:17:59 > 0:18:03You will, thank you. 210, I have. 212, do I see?
0:18:03 > 0:18:06£210,000, I'm bid. I'll take 211.
0:18:06 > 0:18:08212. 213.
0:18:08 > 0:18:09214.
0:18:09 > 0:18:11215.
0:18:11 > 0:18:12216.
0:18:12 > 0:18:14Despite a bright start to the auction,
0:18:14 > 0:18:18the torrent of bids soon turned to a trickle.
0:18:18 > 0:18:22The increments dropped to £500 and progress was slow.
0:18:22 > 0:18:28We rejoin the auction with the price having reached £224,000.
0:18:28 > 0:18:29224.
0:18:29 > 0:18:30224 and a half.
0:18:32 > 0:18:33224 and a half.
0:18:33 > 0:18:37Now, with you, then, at £224,000 for the first...
0:18:38 > 0:18:41..224 for the second,
0:18:41 > 0:18:44third... 224 and a half. 225.
0:18:44 > 0:18:46225 and a half.
0:18:49 > 0:18:53Go through it all again. At the front, then, 225 for the first,
0:18:53 > 0:18:55225 for the second...
0:18:56 > 0:18:59..third, final time, 225.
0:19:00 > 0:19:03That's yours at 225, well done.
0:19:03 > 0:19:09It was Miriam and her fiance, Ben, who made that final bid of £225,000.
0:19:11 > 0:19:14Originally from Berlin, Miriam lives in London with Ben
0:19:14 > 0:19:15and their young daughter.
0:19:15 > 0:19:19So what's the plan for this Strawberry Hill commuter pad?
0:19:21 > 0:19:24- Miriam, lovely to meet you today. - Very nice to meet you.
0:19:24 > 0:19:27- What a fantastic flat. Clean as a whistle.- Thank you.
0:19:27 > 0:19:29A great find in the auction room.
0:19:29 > 0:19:32What's the back story and why did you want to buy this?
0:19:32 > 0:19:35Well, we were looking to buy something fairly quickly.
0:19:35 > 0:19:36So that's why we went to auction.
0:19:36 > 0:19:39And then, of course, the location and the condition of the flat was
0:19:39 > 0:19:41so good that we really thought we should go for it.
0:19:41 > 0:19:43Did you expect to get it?
0:19:43 > 0:19:48Well, we had three properties on the list we would like to have,
0:19:48 > 0:19:52and this was the one that was first up at auction
0:19:52 > 0:19:54and in the best condition, so we're really happy.
0:19:54 > 0:19:58- I mean, you got it for 225. It's quite incredible, isn't it?- Yes.
0:19:58 > 0:20:01And there is nothing really you need to do here.
0:20:01 > 0:20:02I mean you can upgrade it, if you want to,
0:20:02 > 0:20:05- but it's kind of ready to go.- Yes.
0:20:05 > 0:20:08So is your intention to eventually move into this flat?
0:20:08 > 0:20:11No, not ourselves because we are three of us,
0:20:11 > 0:20:12so it would be too small.
0:20:12 > 0:20:15I was going to say, there's not a huge amount of space for you
0:20:15 > 0:20:16and your little one.
0:20:16 > 0:20:19So you've bought this just to rent out as an investment?
0:20:19 > 0:20:20Yes, for the future.
0:20:20 > 0:20:23So how well do you know Strawberry Hill?
0:20:23 > 0:20:26We've looked for ourselves in the area of Barnes.
0:20:26 > 0:20:29We're looking to move here potentially at some point to
0:20:29 > 0:20:32- be near the German school. - Aren't you going abroad soon?
0:20:32 > 0:20:34Yes, for a little break, we're going to Berlin,
0:20:34 > 0:20:36but don't know for how long. Let's see how we like it.
0:20:36 > 0:20:39# Don't you know you really gotta
0:20:39 > 0:20:43# Get up, get up Turn it around... #
0:20:43 > 0:20:46Having lived in London for a number of years to be near Ben's parents,
0:20:46 > 0:20:50the family are now planning to relocate to Germany to be
0:20:50 > 0:20:53closer to Miriam's mum, which means this flat needs to start
0:20:53 > 0:20:55earning rental income.
0:20:55 > 0:20:58# Such a long, long way to go... #
0:20:58 > 0:21:00Now let's talk about the downside of the property
0:21:00 > 0:21:02cos we've, you know, touched on the fact that
0:21:02 > 0:21:04it's clean and you could rent it.
0:21:04 > 0:21:07- It does have a train track right there.- I know!
0:21:07 > 0:21:09It's very busy, you've got people walking
0:21:09 > 0:21:11past your window right there.
0:21:11 > 0:21:13It's not everybody's cup of tea, this.
0:21:13 > 0:21:17Well, are we thinking, at least it's a train line and not a Tube line.
0:21:17 > 0:21:21So the trains do stop running at 11 o'clock in the evening.
0:21:21 > 0:21:23And ideally, it would be a professional living here.
0:21:23 > 0:21:27So hopefully, they wouldn't be here all day watching the people.
0:21:27 > 0:21:28So is that what you see?
0:21:28 > 0:21:30A professional person renting this flat?
0:21:30 > 0:21:31I would think so, yes.
0:21:31 > 0:21:35And are you intending to spend any money here at all?
0:21:35 > 0:21:38Well, we are looking to give it a new lick of paint.
0:21:38 > 0:21:42And we do have to do a little bit of plumbing. And that's it.
0:21:42 > 0:21:45What about the little area of damp as you walk in, in the hallway?
0:21:45 > 0:21:48That's something that I'm not too worried about, but
0:21:48 > 0:21:49I would like to get investigated.
0:21:49 > 0:21:53Well, that's happened over the weekend.
0:21:53 > 0:21:55So basically, the previous tenant moved out
0:21:55 > 0:21:59and the toilet was constantly running, and that's why it's wet.
0:21:59 > 0:22:02So that wasn't there when I first saw it and when we bought it.
0:22:02 > 0:22:04That's literally just happened now.
0:22:04 > 0:22:07OK, so how much money are you going to spend? You said a lick of paint.
0:22:07 > 0:22:09Give me a figure.
0:22:09 > 0:22:12Well, let's add plumbing, painting, maybe £1,000,
0:22:12 > 0:22:13professionally cleaning it.
0:22:13 > 0:22:16Yeah, absolutely, I mean, that's all I've said, £1,000.
0:22:16 > 0:22:18as I think that's all you need to do. Clean the kitchen.
0:22:18 > 0:22:22I mean, you've got a washing machine in there. You've got furniture here.
0:22:22 > 0:22:26Really nice grey sofas. I mean, so what was the plan there?
0:22:26 > 0:22:29Well, basically the previous owner asked us
0:22:29 > 0:22:31if we would like to keep some of the furniture,
0:22:31 > 0:22:34and so we haggled him down and we've taken them.
0:22:34 > 0:22:37- So how much did you pay for the furniture?- Everything, £400.
0:22:37 > 0:22:40- 400 quid for everything else in the flat?- Yeah.
0:22:40 > 0:22:41That's so worthwhile, isn't it?
0:22:44 > 0:22:47Something else worthwhile is reading the legal pack.
0:22:47 > 0:22:51While Miriam saved a few quid on furniture, unfortunately,
0:22:51 > 0:22:53she lost a whole bundle of cash
0:22:53 > 0:22:57because she missed a very important detail in the document.
0:22:57 > 0:22:59A dispute between the previous owner and
0:22:59 > 0:23:02the buildings management company left three years' worth
0:23:02 > 0:23:04of unpaid service charges.
0:23:04 > 0:23:06A total of three and a half grand!
0:23:06 > 0:23:08And guess who was liable for that?
0:23:11 > 0:23:15- I had to pay for it.- So you had to pay for that? Oh, dear!
0:23:15 > 0:23:20So you paid 225 and then you had to pay an extra three and a half grand?
0:23:20 > 0:23:22Yeah. This legal pack, actually, was quite overwhelming
0:23:22 > 0:23:24because it was page, after page, after page,
0:23:24 > 0:23:26where others are quite short so...
0:23:26 > 0:23:28That's the biggest tip I can give you.
0:23:28 > 0:23:31Read the legal pack. If not, give it to somebody else to read.
0:23:31 > 0:23:34Because things like that do crop up all the time at auction,
0:23:34 > 0:23:35and that is probably why
0:23:35 > 0:23:38it did go into the auction, you know, anyway.
0:23:38 > 0:23:41So that must have been a bit of a bummer for you guys,
0:23:41 > 0:23:46- really, to find that out. - Yeah, but it is OK. It's OK.
0:23:46 > 0:23:49- Do you still think it was worth buying this flat?- Yeah.
0:23:49 > 0:23:51So tell me about your timescale. You've got £1,000 to spend.
0:23:51 > 0:23:55- You want to paint it white. How long is it going to take you?- A week.
0:23:55 > 0:23:58Literally, you're going to be in here a week, done.
0:23:58 > 0:23:59- Yes.- Renting it out.
0:23:59 > 0:24:02- That's the plan.- Time is of the essence with you.- Yes.
0:24:02 > 0:24:04Listen, good luck with this project
0:24:04 > 0:24:06and I hope everything goes really well for you in Berlin.
0:24:06 > 0:24:09- Thank you so much. - Congratulations. Thank you.
0:24:11 > 0:24:12What a lucky find for Miriam.
0:24:12 > 0:24:15A great flat in a great area
0:24:15 > 0:24:17and only £1,000 to spend on the property.
0:24:17 > 0:24:20Shame about that extra three and a half grand
0:24:20 > 0:24:22that was lurking in the legal pack, though.
0:24:22 > 0:24:24Must have left a bitter taste.
0:24:24 > 0:24:28Other than that, everything else in Strawberry Hill seems sweet.
0:24:28 > 0:24:32Join me later in the programme and you can find out how Miriam gets on.
0:24:33 > 0:24:36Still to come, someone was itching to buy this
0:24:36 > 0:24:39Nottingham three-bed semi.
0:24:39 > 0:24:41I was getting a bit itchy and it came up
0:24:41 > 0:24:43and I thought, "Let's just go for it."
0:24:46 > 0:24:49And in Strawberry Hill, does Miriam think her decorating
0:24:49 > 0:24:51has come up to scratch?
0:24:51 > 0:24:52Yeah, it's very pleasing.
0:24:56 > 0:25:00It's time to return to Chesterton in Newcastle-under-Lyme and a
0:25:00 > 0:25:06property I wouldn't honestly want to visit twice, if I had the choice.
0:25:06 > 0:25:09A perfectly good area and, on paper at least, an attractive house.
0:25:09 > 0:25:13But, oh, my goodness, the mess!
0:25:13 > 0:25:15And the smell!
0:25:15 > 0:25:18This is a house which has had dogs or whatever
0:25:18 > 0:25:23running around doing whatever they do inside the house,
0:25:23 > 0:25:27so you have got a house that is literally
0:25:27 > 0:25:32saturated with pee and poo.
0:25:32 > 0:25:33# Betty Boo
0:25:33 > 0:25:35# Betty Boo just doin' the do
0:25:35 > 0:25:37# And you are through
0:25:37 > 0:25:40# And there's nothing you can do... #
0:25:41 > 0:25:43Well, the pets had already done
0:25:43 > 0:25:46the do, and in large quantities, judging by the stench.
0:25:46 > 0:25:49But this three-bed property had many good points.
0:25:49 > 0:25:53Plenty of space inside, especially the kitchen, and both front
0:25:53 > 0:25:56and back gardens were a really good size.
0:25:58 > 0:26:00It was Mike, here, with daughter Hayley
0:26:00 > 0:26:02who saw the potential of this place,
0:26:02 > 0:26:06paying bang on the guide price of £65,000.
0:26:06 > 0:26:10Bought jointly with his wife, Kathleen, the idea was to
0:26:10 > 0:26:14fully refurbish and then take a decision on whether to sell or rent.
0:26:14 > 0:26:18But first, they'd have to sort out that smell.
0:26:18 > 0:26:22In some areas, obviously, the skirting board is going to be
0:26:22 > 0:26:24- coming off, and that's going to be thrown away.- Yeah.
0:26:24 > 0:26:30There may be areas of floorboarding that will have to be chopped out.
0:26:30 > 0:26:33With a maximum budget of 15 grand
0:26:33 > 0:26:36and a completion target of six months to aim for,
0:26:36 > 0:26:39Mike and Hayley donned the protective clothing and got to work.
0:26:41 > 0:26:47Almost exactly six months later, we've come back with clothes pegs
0:26:47 > 0:26:51at the ready, just in case. Let's find out how they got on.
0:26:51 > 0:26:54# Sun is shining in the sky
0:26:54 > 0:26:57# There ain't a cloud in sight
0:26:57 > 0:26:59# It's stopped raining
0:26:59 > 0:27:01# Everybody's in a play
0:27:01 > 0:27:03# And don't you know
0:27:03 > 0:27:05# It's a beautiful new day
0:27:05 > 0:27:09# Hey, hey, hey... #
0:27:09 > 0:27:13The sun is shining outside and it's pretty cheery indoors, too.
0:27:13 > 0:27:16Mike and Hayley have done a terrific job in here and,
0:27:16 > 0:27:18you'll have to take my word for this,
0:27:18 > 0:27:22the house smells of nothing but fresh paint and new carpet.
0:27:22 > 0:27:27So how did they set about the daunting task of fumigation?
0:27:27 > 0:27:30We tried to get rid of the smell with disinfectant.
0:27:30 > 0:27:33- Lots of disinfectant. Yeah. - Lots of disinfectant.
0:27:33 > 0:27:37But that didn't seem to have much effect, so it ended up that we had
0:27:37 > 0:27:42to bring down a third of this ceiling
0:27:42 > 0:27:44and some of the other ceilings...
0:27:44 > 0:27:48- Yes.- ..also the floorboards, or getting underneath
0:27:48 > 0:27:52the floorboards as well, and actually scrubbing the joists.
0:27:52 > 0:27:54It was just soaked through with urine, everything was,
0:27:54 > 0:27:57- wasn't it, basically? - It was really bad.- Horrible.
0:27:57 > 0:27:59It was quite disheartening at first, wasn't it?
0:27:59 > 0:28:02When every time you walked back through, you could still smell it.
0:28:02 > 0:28:05You thought, "It's never going to go." But it did, eventually.
0:28:05 > 0:28:07It sounds like a bit of an ordeal
0:28:07 > 0:28:09but something you'd have to be prepared for
0:28:09 > 0:28:12if you bought a house in such a state.
0:28:12 > 0:28:14With the dark days far behind them,
0:28:14 > 0:28:18what's their favourite part of this rejuvenated property?
0:28:18 > 0:28:22I quite like this front room because when we first came in here,
0:28:22 > 0:28:29- it was so dark even on a light day. The walls were so dark...- Yeah.
0:28:29 > 0:28:34I think it really looks nice now with the laminate floor
0:28:34 > 0:28:37- and the light colour scheme.- Yeah.
0:28:37 > 0:28:40Mike was able to spend a lot of time working on the house,
0:28:40 > 0:28:43and the fruits of his labour are impressive.
0:28:43 > 0:28:45He brought in a plumber to help with the kitchen
0:28:45 > 0:28:48and bathroom fitting and also hired an electrician to check
0:28:48 > 0:28:50the wiring, which turned out to be
0:28:50 > 0:28:52in better condition than he'd expected.
0:28:55 > 0:28:59However, Hayley found that Baby George wasn't too keen on mum
0:28:59 > 0:29:02disappearing to help Grandad.
0:29:02 > 0:29:04When I was able to, I helped with a little bit of cleaning
0:29:04 > 0:29:06and things. The garden,
0:29:06 > 0:29:08I helped with a little bit of gardening as well and just
0:29:08 > 0:29:10general tidying up where I could.
0:29:10 > 0:29:11And that was it really, unfortunately.
0:29:11 > 0:29:15- And plenty of pastoral care with tea and coffee.- Teas, cake, yeah.
0:29:16 > 0:29:20With Hayley's help, the back garden has been completely cleared
0:29:20 > 0:29:24and the lean-to area has been tidied and painted.
0:29:24 > 0:29:27But it's at the front of the house where most of the landscaping
0:29:27 > 0:29:29work has taken place.
0:29:29 > 0:29:32We completely stripped the front
0:29:32 > 0:29:35and put in the new block paving.
0:29:35 > 0:29:40We decided to drop the kerb because the kerb was quite high, which is
0:29:40 > 0:29:43something you have to go through the Council for.
0:29:43 > 0:29:47And a contractor came along and did that for us
0:29:47 > 0:29:49over the space of a couple of days.
0:29:49 > 0:29:53Mike had hoped to keep his budget to £10,000
0:29:53 > 0:29:56but was realistic enough to have a contingency fund of
0:29:56 > 0:30:01a further £5,000. But in the end, how much did he actually spend?
0:30:01 > 0:30:08What we've actually spent on materials and everything is £10,400.
0:30:10 > 0:30:14£400 over budget, he's hardly scratched the contingency fund.
0:30:14 > 0:30:17Mike and Kathleen have decided that they'll put
0:30:17 > 0:30:21the house up for sale, which seems like a good time to cue the music.
0:30:23 > 0:30:26We asked two local property experts to come along
0:30:26 > 0:30:28and evaluate Mike's work.
0:30:28 > 0:30:32Will they like what they see and, more importantly, with Mike's
0:30:32 > 0:30:37total spend of £75,400, do they think there's a profit in it?
0:30:37 > 0:30:40The sanded finish has been done to a good standard.
0:30:40 > 0:30:44It's been kept very simple and very tidy.
0:30:44 > 0:30:46And it's due to appeal to the
0:30:46 > 0:30:48market audience of first-time buyers
0:30:48 > 0:30:50and young couples who are likely to move in.
0:30:50 > 0:30:53My first impressions of the property, that the property's been
0:30:53 > 0:30:55updated, so it's been redecorated throughout, floor coverings,
0:30:55 > 0:30:57new kitchen, new bathroom
0:30:57 > 0:31:00and certainly looks well outside with the new block paving.
0:31:01 > 0:31:04Of course they like it. He's done a great job.
0:31:04 > 0:31:06But let's get some rental values.
0:31:07 > 0:31:10In today's market for rentals, I would expect this property to
0:31:10 > 0:31:14achieve in the region of £525 per calendar month.
0:31:14 > 0:31:16If the property was placed onto the rental market, we would hope
0:31:16 > 0:31:21to achieve somewhere in the region of £495 per calendar month.
0:31:22 > 0:31:25Had Mike and Kathleen decided to let this house,
0:31:25 > 0:31:30that top rental figure would earn them just over the 8% mark.
0:31:30 > 0:31:33What about the all-important sales values?
0:31:33 > 0:31:35We would look to put the property on to
0:31:35 > 0:31:37the market in the region of £95,000.
0:31:37 > 0:31:39In today's market,
0:31:39 > 0:31:42I'd expect the property to achieve in around £92,000.
0:31:42 > 0:31:45We put it up for sale on the Friday, and by the Monday,
0:31:45 > 0:31:50we'd had four offers, and we accepted an offer for £94,000,
0:31:50 > 0:31:53although 20 minutes later we got an offer for £95,000.
0:31:53 > 0:31:55But it was too late then.
0:31:55 > 0:32:01# The sweet smell of success... #
0:32:02 > 0:32:06So with a profit of £18,600 before fees and tax,
0:32:06 > 0:32:09Mike is keen to revisit the auction rooms
0:32:09 > 0:32:14and would even consider taking on another property with odour issues.
0:32:14 > 0:32:17- I think we've learned a lot on this one.- Yeah, yeah.
0:32:17 > 0:32:20And the next time round, we wouldn't waste so much time
0:32:20 > 0:32:21on disinfecting the place and
0:32:21 > 0:32:24- just get down to actually ripping it out.- Yeah.
0:32:29 > 0:32:33Four miles north of Nottingham, Bestwood Park and its surrounding
0:32:33 > 0:32:37areas were once a hunting reserve in the medieval Sherwood Forest.
0:32:37 > 0:32:40But today it's me hunting for a bargain.
0:32:40 > 0:32:43MUSIC: I Do It For You by Bryan Adams
0:32:43 > 0:32:45And so to the auction lot I'm here to see.
0:32:45 > 0:32:49It's a three-bed, semidetached, ex-local authority property,
0:32:49 > 0:32:52probably built some time in the '40s.
0:32:52 > 0:32:55It has a guide price of £68,000 plus.
0:32:55 > 0:32:58Let's get inside and see what you get for your money around here.
0:32:58 > 0:33:02Back in the '40s, you got a lot of council house for your money.
0:33:02 > 0:33:04# All of me
0:33:04 > 0:33:10# Why not take all of me... #
0:33:10 > 0:33:12OK, we're in through a small porchway.
0:33:12 > 0:33:14And the kitchen's right in front of you.
0:33:14 > 0:33:17Long galley kitchen, not in great condition.
0:33:17 > 0:33:20That would definitely need replacing.
0:33:20 > 0:33:27Stairs up to the bedrooms and into the main living room/dining area.
0:33:27 > 0:33:29Pretty typical local authority,
0:33:29 > 0:33:33or should I say ex-local authority, property - lots of space,
0:33:33 > 0:33:35doors going into the kitchen,
0:33:35 > 0:33:39central heating there at both ends of the room.
0:33:39 > 0:33:40A little bit of plaster damage as well,
0:33:40 > 0:33:42either side of that front window.
0:33:42 > 0:33:46And I'm not quite sure what this staining is on the wall.
0:33:46 > 0:33:49It looks like it's some kind of burning here.
0:33:49 > 0:33:51I can't quite figure that out.
0:33:51 > 0:33:55I wouldn't want to knock any walls down or put any walls in, down here.
0:33:55 > 0:33:59So if you can see beyond what it looks like, it's not a bad start.
0:33:59 > 0:34:01Let's go upstairs.
0:34:03 > 0:34:05OK, upstairs, you've got the three bedrooms
0:34:05 > 0:34:08and a family bathroom as well,
0:34:08 > 0:34:11which is a good size, but you would have to replace it.
0:34:11 > 0:34:13A bedroom behind me there.
0:34:13 > 0:34:15A bigger bedroom to the front of the property,
0:34:15 > 0:34:18and bedroom three just here.
0:34:18 > 0:34:23And just like downstairs, there's a bit of staining and
0:34:23 > 0:34:25there's a bit of a smell as well, which isn't...
0:34:25 > 0:34:27isn't very pleasant at all.
0:34:27 > 0:34:28But if there is one bonus -
0:34:28 > 0:34:31there doesn't seem to be any structure work needed at all,
0:34:31 > 0:34:33maybe just a bit of elbow grease.
0:34:35 > 0:34:38The clue to the staining might be in the melted candle wax
0:34:38 > 0:34:41in the room next-door to the bathroom. But this,
0:34:41 > 0:34:45like everything else here, is entirely fixable.
0:34:45 > 0:34:48There's plenty of plastering and painting to be done here,
0:34:48 > 0:34:49that's for sure.
0:34:49 > 0:34:52Overall, the house is in a really poor cosmetic state,
0:34:52 > 0:34:54but the proportions are great.
0:34:56 > 0:34:59# All of me
0:34:59 > 0:35:04# Why not take all of me?... #
0:35:04 > 0:35:08So out into the back garden, which isn't a bad size at all.
0:35:08 > 0:35:13As you can see, it's been left for some time just to grow wild.
0:35:13 > 0:35:14But if you roll your sleeves up,
0:35:14 > 0:35:16you'll get this done in a couple of days.
0:35:16 > 0:35:19But look at those double doors.
0:35:20 > 0:35:23That's actually the lounge.
0:35:23 > 0:35:26Now, get rid of those doors, put some nice patio doors on
0:35:26 > 0:35:30or a big window, but you would have to factor that into your budget,
0:35:30 > 0:35:33and those kinds of things don't come cheap.
0:35:33 > 0:35:36We invited an estate agent along for a viewing.
0:35:36 > 0:35:38With her local knowledge of values
0:35:38 > 0:35:40and markets, she's best
0:35:40 > 0:35:42placed to advise on the type of buyer
0:35:42 > 0:35:44this property is likely to attract.
0:35:45 > 0:35:49A lot of first-time buyers are coming into the area cos
0:35:49 > 0:35:52it's good schools and commute to the city centre.
0:35:53 > 0:35:55Some areas have poor sales markets
0:35:55 > 0:35:58and good rental markets, or vice versa.
0:35:58 > 0:36:00How does this area fare?
0:36:00 > 0:36:04Sales are quite strong. They've been strong for about 18 months now.
0:36:04 > 0:36:09Lettings have always been strong since the downturn on the market,
0:36:09 > 0:36:14but it's a very sellable property and it will let out also.
0:36:14 > 0:36:17I'm sure that would be valuable information for anyone
0:36:17 > 0:36:18wishing to bid on the property,
0:36:18 > 0:36:22but they need to take into account the cost of the renovation.
0:36:23 > 0:36:27I think the cost for renovation on the property would be
0:36:27 > 0:36:31anything between £7,000 and £9,000.
0:36:31 > 0:36:36So with a guide of £68,000, that's a potential cost of 77 grand,
0:36:36 > 0:36:38if you get it for the guide price.
0:36:38 > 0:36:39But what would it sell for?
0:36:40 > 0:36:43Once the property's been totally renovated,
0:36:43 > 0:36:46I think it would be worth on the open market
0:36:46 > 0:36:50between £110,000 and £120,000.
0:36:50 > 0:36:53And if someone is buying to let, what rental could they expect?
0:36:53 > 0:36:55On the rental market, I think
0:36:55 > 0:36:57the property will achieve anything around
0:36:57 > 0:37:00£550 per calendar month.
0:37:01 > 0:37:04So on first impressions, it does seem pretty grim.
0:37:04 > 0:37:08But on the inside, I think most of the work would be superficial.
0:37:08 > 0:37:11Like most ex-local authority properties, it is
0:37:11 > 0:37:14well-proportioned and could be a lovely family home.
0:37:14 > 0:37:17Let's see who agreed when it went under the hammer.
0:37:17 > 0:37:21Lot 21. Back to Nottingham postcodes.
0:37:21 > 0:37:24A three-bedroomed semidetached property.
0:37:24 > 0:37:26It needs upgrading and modernisation,
0:37:26 > 0:37:28but it does have gas central heating,
0:37:28 > 0:37:32double glazing and there is off-road parking within the site.
0:37:32 > 0:37:35Who's got 68 on the guide, then, to start me?
0:37:35 > 0:37:38Thank you, £68,000 is the opening bid.
0:37:38 > 0:37:40At 68. 69, somewhere?
0:37:40 > 0:37:4268, I've got...
0:37:42 > 0:37:43With the guide price now history,
0:37:43 > 0:37:48the bidding continues to £77,000 where we rejoin.
0:37:48 > 0:37:52£77,000 for the first time. 500.
0:37:54 > 0:37:5578.
0:37:55 > 0:37:57At 78. 500 again?
0:37:59 > 0:38:0378,500? Yeah? 78,500.
0:38:03 > 0:38:05£78,500. £79,000.
0:38:06 > 0:38:09£79,000. All done?
0:38:09 > 0:38:11Going once,
0:38:11 > 0:38:14500. 79,500.
0:38:14 > 0:38:1580, sir?
0:38:15 > 0:38:19£79,500 at the back of the room,
0:38:19 > 0:38:21at 79,500,
0:38:21 > 0:38:23once, twice,
0:38:23 > 0:38:24third time,
0:38:24 > 0:38:27sold at £79,500. Thank you.
0:38:27 > 0:38:31And the successful bidder was Mick with a bid of 79 and a half grand.
0:38:33 > 0:38:37Mick used to work for the HMRC, that's the taxman to me and you.
0:38:37 > 0:38:41And he was a football referee at championship level,
0:38:41 > 0:38:45so he's obviously not seeking popularity.
0:38:45 > 0:38:47Only kidding, Mick.
0:38:47 > 0:38:49- Mick, nice to meet you. - Nice to meet you.- Congratulations.
0:38:49 > 0:38:53- Thank you very much.- Do you know this area?- I do, actually, yes.
0:38:53 > 0:38:56I grew up on the next estate and I played football a lot
0:38:56 > 0:38:59and still knock around with a lot of lads from this area,
0:38:59 > 0:39:00so I know it quite well, really.
0:39:00 > 0:39:02Is this the only area you look around
0:39:02 > 0:39:03when you're buying properties?
0:39:03 > 0:39:06Anywhere in Nottingham, or Sheffield as well at the moment
0:39:06 > 0:39:07cos I'm living up that way as well.
0:39:07 > 0:39:10So I'm always keeping my eye out on all auctions, really,
0:39:10 > 0:39:12Sheffield and the surrounding areas, really.
0:39:12 > 0:39:15- Checking the catalogues and seeing what's going?- Indeed, yes.
0:39:15 > 0:39:17- Tell us why you decided to buy this one.- I was getting a bit itchy.
0:39:17 > 0:39:20I've seen a few properties come and go lately in the last few months,
0:39:20 > 0:39:24and it came up and I thought, "Let's just go for it."
0:39:24 > 0:39:26Did you go, "I'm missing out, I'm missing out?"
0:39:26 > 0:39:28Yes, that's the one, yeah. I was getting itchy.
0:39:28 > 0:39:30And are you happy with what you've got?
0:39:30 > 0:39:32It's an opener, it's an eye-opener surely.
0:39:32 > 0:39:34But I think it's just cosmetic, really.
0:39:34 > 0:39:36So, yeah, I think I'm quite happy, really.
0:39:36 > 0:39:40Up until now, Mick has only bought houses to live in
0:39:40 > 0:39:43but held on to them and rented them out when he's moved on,
0:39:43 > 0:39:45rather than selling them.
0:39:45 > 0:39:48This is the first time he's bought something to sell on,
0:39:48 > 0:39:52so how's he going to tackle the work and prevent an own goal?
0:39:52 > 0:39:55I'm going to pull in a lot of favours from people,
0:39:55 > 0:39:57- let's be fair.- Mates?- Yes.
0:39:57 > 0:40:01Tap them up for their time and their expertise
0:40:01 > 0:40:05- cos I don't really have any.- OK. - But I'll lend a hand, when I can.
0:40:05 > 0:40:10So the idea is, literally, let's just skim the walls, you know,
0:40:10 > 0:40:13new fresh of paint, bathroom, kitchen.
0:40:13 > 0:40:15Just flip it around very quickly if I can, really.
0:40:15 > 0:40:19- No structural changes of any kind. - But what's your budget?- Erm...
0:40:19 > 0:40:21I don't want to go over seven by rights.
0:40:21 > 0:40:23I want to keep it under five,
0:40:23 > 0:40:25but, you know, you give yourself a bit of leeway
0:40:25 > 0:40:27and take it maybe to seven.
0:40:27 > 0:40:29I don't envisage spending that, to be fair,
0:40:29 > 0:40:31but you never know what might unearth itself.
0:40:31 > 0:40:33And where's the majority of that money going to go, Mick?
0:40:33 > 0:40:36I think on labour because, although I'm calling in favours,
0:40:36 > 0:40:38- you know, people need to be paid. - Yeah.
0:40:38 > 0:40:41There are obviously some windows that need replacing,
0:40:41 > 0:40:44obviously the bathroom and kitchen and just to replaster everywhere.
0:40:44 > 0:40:47And how long are you expecting that work to take?
0:40:47 > 0:40:51I would like... People seem to think between eight and 12 weeks, really.
0:40:51 > 0:40:54I would like eight weeks, but, you know, let's say 12.
0:40:54 > 0:40:56It's how quick you can get the boys in.
0:40:56 > 0:40:59It is. And let's be fair, most of it is internal work that needs
0:40:59 > 0:41:01doing, so weather shouldn't be a problem to anybody.
0:41:01 > 0:41:03Any change out the back at all?
0:41:03 > 0:41:05Not really. Again, it looks worse than what it is just
0:41:05 > 0:41:07because I think it's been left to overgrow.
0:41:07 > 0:41:09You know, if you flatten that grass,
0:41:09 > 0:41:12- tidy that shed up a bit, get rid of the blue fence... - HE LAUGHS
0:41:12 > 0:41:15- ..cos round here we're all red, we're all Forest.- Yes.
0:41:15 > 0:41:17- Cos it's a decent size out the back, isn't it?- It is, it is.
0:41:17 > 0:41:19To me, it appeals to families.
0:41:19 > 0:41:21And it's very big for families around here, you see.
0:41:21 > 0:41:23So a perfect garden for a family.
0:41:23 > 0:41:25I reckon Mick has done well.
0:41:25 > 0:41:28Seven grand isn't a lot of money for what needs doing here,
0:41:28 > 0:41:31but he seems pretty confident.
0:41:31 > 0:41:34There is one thing I should give him a yellow card for, though.
0:41:34 > 0:41:38He didn't view the property before handing over nearly 80 grand.
0:41:40 > 0:41:43- Cardinal sin.- Exactly, that's one of the Hammer rules.
0:41:43 > 0:41:44HE LAUGHS
0:41:44 > 0:41:46Read the legal pack, view the property.
0:41:46 > 0:41:52Yes, I was... I did read the legal pack, but I didn't get
0:41:52 > 0:41:53a chance to look at it,
0:41:53 > 0:41:56and I thought to myself, "How bad can it be?"
0:41:56 > 0:41:57How bad can it be?
0:41:57 > 0:42:01Well, it can be very bad, and Mick has been very lucky.
0:42:01 > 0:42:05Do not try this at home. Well, at least he read the legal pack.
0:42:05 > 0:42:07And tell us why you started.
0:42:07 > 0:42:10What made you go into property in the first place?
0:42:10 > 0:42:11I think the reason is the fact that
0:42:11 > 0:42:14if you've got anything sitting there,
0:42:14 > 0:42:17at the moment, property is the only thing to put money into.
0:42:17 > 0:42:20The banks don't give you anything, so if you've got anything sitting
0:42:20 > 0:42:22there, you've got savings or you can steal
0:42:22 > 0:42:26from your parents or whatever, let's put it into a bit of property.
0:42:26 > 0:42:28- Ask first.- Yes, of course.
0:42:28 > 0:42:32Ask first before you steal. "Would you mind?"
0:42:32 > 0:42:34So, Mick, what do you do when you're not buying property?
0:42:34 > 0:42:36I work up at Sheffield.
0:42:36 > 0:42:39We have a company up there that deals with...
0:42:39 > 0:42:42An international refereeing and training company.
0:42:42 > 0:42:45- Referees, you say?- Referees. - Yeah, my mates...
0:42:45 > 0:42:48- Yes, some of your mates. Mr Halsey, if you remember him.- No!
0:42:48 > 0:42:51Yes, and Keith Hackett and Jock Waugh.
0:42:51 > 0:42:53See, Keith Hackett's a nice bloke. Mark Halsey...
0:42:53 > 0:42:55Not for me, Mark Halsey.
0:42:55 > 0:42:58Sent me off, he did. Good luck, Mick. I wish you all the best.
0:42:58 > 0:43:00- Thank you.- Well, it's a definite yellow card for Mick for
0:43:00 > 0:43:02not viewing the property in the first place.
0:43:02 > 0:43:04If he does it again, I'm going to give him a red.
0:43:04 > 0:43:08But I think he's right. The refurb on this looks pretty cosmetic.
0:43:08 > 0:43:11Once he's got his pals in at mates' rates,
0:43:11 > 0:43:14I'm pretty sure he'll get it done within that seven grand budget.
0:43:14 > 0:43:17You can find out how he gets on later on in the programme.
0:43:20 > 0:43:22One property down, two to go.
0:43:22 > 0:43:25Have they stuck to their plans or have their plans become unstuck?
0:43:25 > 0:43:28Well, I think we'd better find out, don't you?
0:43:31 > 0:43:34Back to the Borough of Richmond, Greater London, where,
0:43:34 > 0:43:37in Strawberry Hill, I looked around this one-bedroom flat
0:43:37 > 0:43:42bought for £225,000 with a railway station literally on the doorstep.
0:43:47 > 0:43:51Now, inside... Ooh, I'm getting a good feeling about this!
0:43:51 > 0:43:55It's feeling all rather new. You've got lovely storage there.
0:43:55 > 0:43:57Ah, I do spy a little bit of damp down there,
0:43:57 > 0:43:59and it's sort of wet to the touch.
0:43:59 > 0:44:01I wouldn't worry about it too much,
0:44:01 > 0:44:02but I'd certainly get that looked at.
0:44:02 > 0:44:05A bedroom through here, which we'll come back to.
0:44:05 > 0:44:08And um, ooh, the bathroom, fantastic!
0:44:08 > 0:44:12I mean it all looks like it's in really good condition.
0:44:12 > 0:44:15You could probably instantly rent a place like this out.
0:44:15 > 0:44:18I mean, look, it's even got the furniture in situ.
0:44:18 > 0:44:21Gosh, it even looks really comfortable as well.
0:44:21 > 0:44:23Anyway, I won't sit down, otherwise I'll never get up.
0:44:23 > 0:44:25Storage again, which is fantastic.
0:44:25 > 0:44:29Every inch of this flat has been thought out.
0:44:29 > 0:44:32But would the price of the trains' proximity prove to be
0:44:32 > 0:44:34a bridge too far?
0:44:34 > 0:44:37Bit of a downside, though, is that view out there.
0:44:37 > 0:44:41You're looking from your bed straight out onto the train track.
0:44:41 > 0:44:44But what I do like is that you can wake up to the
0:44:44 > 0:44:48sound of the 8.20 in time to hop onto the 8.30,
0:44:48 > 0:44:50ready for work! Perfect.
0:44:52 > 0:44:54Well, the flat was bought by Berliner Miriam
0:44:54 > 0:44:56and her fiance, Ben, to do up
0:44:56 > 0:45:00and rent out in the mid-term before their imminent move to Germany.
0:45:03 > 0:45:06- I mean, you got it for 225. It's quite incredible, isn't it?- Yes.
0:45:06 > 0:45:09And there is nothing really you need to do here.
0:45:09 > 0:45:11I mean you can upgrade it if you want to,
0:45:11 > 0:45:13- but it's kind of ready to go.- Yeah.
0:45:13 > 0:45:17So is your intention to eventually move into this flat?
0:45:17 > 0:45:21Not ourselves because we are three of us, so it would be too small.
0:45:21 > 0:45:23I was going to say, there's not a huge amount of space for you
0:45:23 > 0:45:25and your little one.
0:45:25 > 0:45:27- So you've bought this just to rent out as an investment?- Yes.
0:45:27 > 0:45:30For the future.
0:45:30 > 0:45:33After living near Ben's mother in London for a number of years,
0:45:33 > 0:45:36the couple want their daughter, Angelica, aged three and a half,
0:45:36 > 0:45:37to learn German
0:45:37 > 0:45:40so they're going back to Berlin to be nearer to Miriam's mum.
0:45:40 > 0:45:43But before that, they had a refurbishment to do.
0:45:45 > 0:45:48We are looking to give it a new lick of paint.
0:45:48 > 0:45:52And we do have to do a little bit of plumbing. And that's it.
0:45:52 > 0:45:54OK, so how much money are you going to spend?
0:45:54 > 0:45:56You said a lick of paint, give me a figure.
0:45:56 > 0:45:59Well, let's add plumbing, painting, maybe £1,000,
0:45:59 > 0:46:03- professionally cleaning it.- Yeah, I mean that's all I've said, £1,000.
0:46:03 > 0:46:06I think that's all you need to do. Clean the kitchen.
0:46:06 > 0:46:09- How long is it going to take you? - A week.
0:46:09 > 0:46:11Literally, you're going to be in here a week. Done.
0:46:11 > 0:46:12- Yes.- Renting it out.
0:46:12 > 0:46:15- That's the plan.- Time is of the essence with you.- Yes.
0:46:17 > 0:46:20Even though it's a small flat, if you're repainting all the walls
0:46:20 > 0:46:25and ceilings in brilliant white, there's still a lot of work to do.
0:46:25 > 0:46:28This won't be a colossal transformation, but we're back
0:46:28 > 0:46:31six days later to see if the flat's...
0:46:31 > 0:46:32Well, what's the word for it?
0:46:32 > 0:46:34# I'll be redefined
0:46:34 > 0:46:37# It's shaking the sky
0:46:37 > 0:46:40# And I'm following lightning
0:46:40 > 0:46:43# And I'll recover if you keep me alight
0:46:43 > 0:46:45# Don't leave me behind
0:46:45 > 0:46:47# Can you see me?
0:46:47 > 0:46:49# I'm shining
0:46:49 > 0:46:52# And it's you that I've been waiting to find... #
0:46:52 > 0:46:54Well, a week ago the toilet had a leaking cistern,
0:46:54 > 0:46:57which had caused the damp I'd spotted in the hallway.
0:46:57 > 0:47:02But now it's replumbed and boxed in, and the bathroom's refreshed.
0:47:12 > 0:47:13In addition to the paint job,
0:47:13 > 0:47:16Miriam employed professional cleaners
0:47:16 > 0:47:17to do a deep clean throughout.
0:47:20 > 0:47:24Overall, the overhaul has given the apartment a chance to really shine.
0:47:27 > 0:47:29# I'm holding it all tonight
0:47:29 > 0:47:31# Unfolding it all tonight
0:47:31 > 0:47:32# You know that
0:47:32 > 0:47:34# You make it shine... #
0:47:34 > 0:47:37So, has it been a busy week?
0:47:37 > 0:47:39To redecorate and renovate the place,
0:47:39 > 0:47:41it's taken four and a half days.
0:47:41 > 0:47:45The paintwork and surface has taken four days.
0:47:45 > 0:47:49And to get the plumbing fixed has taken two days.
0:47:49 > 0:47:52But Miriam did get help from an unexpected source -
0:47:52 > 0:47:54her daughter, Angelica.
0:47:54 > 0:47:57She's been painting little elephants and castles on the wall
0:47:57 > 0:47:59and I repainted them. So she really enjoyed it.
0:48:00 > 0:48:04Nothing's worse than repainting the repainted bits.
0:48:04 > 0:48:08Shame Miriam didn't have a decorator in the family. Or did she?
0:48:08 > 0:48:11Even though my fiance has been a painter and decorator
0:48:11 > 0:48:15in the past, he's been so busy packing and organising
0:48:15 > 0:48:18our own move that I've been quite happy to paint it myself.
0:48:20 > 0:48:23Time now to call in the property experts to find out the added
0:48:23 > 0:48:25value gained from a lick of paint,
0:48:25 > 0:48:27some deep cleaning and a bit
0:48:27 > 0:48:31of plumbing and how much rent Miriam and Ben can reasonably expect.
0:48:33 > 0:48:37First up, the agent who saw it before it was polished.
0:48:37 > 0:48:39I think the renters finished the property really well.
0:48:39 > 0:48:41It's an ideal property to get on the rental market,
0:48:41 > 0:48:42and it's a blank canvas.
0:48:42 > 0:48:44You don't need to come in here and do that much to it,
0:48:44 > 0:48:46but equally, you can put your own stamp on it.
0:48:46 > 0:48:48I was really pleasantly surprised by the property.
0:48:48 > 0:48:51It's a really good size. I feel that it's very airy,
0:48:51 > 0:48:53bright and spacious
0:48:53 > 0:48:55and the layout really works.
0:48:55 > 0:48:57I guess the brightness is a reflection of the two coats
0:48:57 > 0:48:59of white paint.
0:48:59 > 0:49:01I know Miriam and Ben don't intend selling,
0:49:01 > 0:49:05but let's get a measure of the Strawberry Hill sales market.
0:49:05 > 0:49:08They bid £225,000 at auction,
0:49:08 > 0:49:12but then had to stump up three and a half grand for past service charges,
0:49:12 > 0:49:19plus that grand brings their total investment to £229,500.
0:49:19 > 0:49:21On the current sales market,
0:49:21 > 0:49:24I believe this property would achieve around £300,000.
0:49:24 > 0:49:26If this property was on the sales market now,
0:49:26 > 0:49:31I would put it on the market at £239,950.
0:49:31 > 0:49:32Crikey, what a difference!
0:49:32 > 0:49:38And at the top figure, that's a potential profit of £70,500.
0:49:38 > 0:49:41Gosh, not bad for a lick of paint and a week's work.
0:49:41 > 0:49:42Any thoughts, Miriam?
0:49:42 > 0:49:44I actually haven't thought about selling it at all,
0:49:44 > 0:49:47so I guess it's a long-term investment for me.
0:49:47 > 0:49:49So, yeah, it's very pleasing.
0:49:50 > 0:49:54And so to the main interest - the rental figures.
0:49:54 > 0:49:56I'd recommend putting this property on the rental
0:49:56 > 0:49:58market now £1,050 per calendar month.
0:49:58 > 0:50:01I believe, in the current rental market,
0:50:01 > 0:50:05this property would achieve £1,150 per calendar month.
0:50:05 > 0:50:09Again, taking the top figure, that equates to a yield of 6%.
0:50:09 > 0:50:12So when will it go up for rental?
0:50:12 > 0:50:16We put it on today, on the market, and we're hoping to get £1,050.
0:50:16 > 0:50:18Um, I'm confident we will.
0:50:18 > 0:50:22Before you hop on the train, any final thoughts?
0:50:22 > 0:50:25Handing over the keys today to the estate agent,
0:50:25 > 0:50:27knowing that I'm moving to Berlin tomorrow, has been a great relief.
0:50:27 > 0:50:31And everything's been done and it's perfect to go,
0:50:31 > 0:50:33for somebody to move in.
0:50:37 > 0:50:40Now back to the Bestwood Park area in Nottingham, where
0:50:40 > 0:50:43earlier in the show, I looked around this three-bed semi,
0:50:43 > 0:50:44which looked like it'd had
0:50:44 > 0:50:47some smoke damage earlier on in its life.
0:50:50 > 0:50:53Just like downstairs, there's a bit of staining
0:50:53 > 0:50:55and there's a bit of a smell as well,
0:50:55 > 0:50:57which isn't very pleasant at all.
0:50:57 > 0:50:59But if there is one bonus,
0:50:59 > 0:51:02there doesn't seem to be any structure work needed at all,
0:51:02 > 0:51:04maybe just a bit of elbow grease.
0:51:04 > 0:51:06That and a full replaster.
0:51:07 > 0:51:10The highest bidder at auction was local lad Mick,
0:51:10 > 0:51:12who paid 79 and a half grand
0:51:12 > 0:51:15with a plan to renovate and sell on, or rent
0:51:15 > 0:51:18if he couldn't make enough profit.
0:51:18 > 0:51:21Mick had all the right ideas to turn this former local authority
0:51:21 > 0:51:23property into a modern, spacious home.
0:51:25 > 0:51:27Tell us what you're going to do.
0:51:27 > 0:51:32- Well, I've got to pull in a lot of favours from people.- Mates?
0:51:32 > 0:51:38Yes, tap them up for their time and their expertise
0:51:38 > 0:51:42- cos I don't really have any.- OK. - But I'll lend a hand, when I can.
0:51:42 > 0:51:48So the idea is literally just skim the walls, new fresh of paint,
0:51:48 > 0:51:52bathroom, kitchen. Just flip it round very quickly if I can, really.
0:51:52 > 0:51:54No structural changes of any kind.
0:51:55 > 0:51:57Well, the quick flip wasn't to be.
0:51:57 > 0:52:01Mick's eight to 12 week timescale expanded somewhat.
0:52:02 > 0:52:04We're back, eight months later, to see
0:52:04 > 0:52:07the love and care he's put into this renovation.
0:52:08 > 0:52:12# Show me a better love
0:52:12 > 0:52:15# Show me a better, better love
0:52:15 > 0:52:19# Show me a better love
0:52:19 > 0:52:23# Show me a better, better love... #
0:52:25 > 0:52:29The new plaster work, paintwork, windows and flooring
0:52:29 > 0:52:32give the shine to where there once was soot.
0:52:33 > 0:52:35With a very long, thin kitchen area,
0:52:35 > 0:52:38design options were bound to be limited,
0:52:38 > 0:52:41but Mick's new kitchen definitely makes the most of the space.
0:52:47 > 0:52:50# Don't ask me how
0:52:50 > 0:52:53# But I always thought that we could have
0:52:53 > 0:52:54# A better love... #
0:52:56 > 0:52:59There are a few finishing touches still required like
0:52:59 > 0:53:00the fitting of kickboards.
0:53:02 > 0:53:06# Show me a better love
0:53:06 > 0:53:10# Show me a better, better love
0:53:10 > 0:53:13# Show me a better love
0:53:13 > 0:53:18# Show me a better, better love... #
0:53:20 > 0:53:24The upstairs has improved also, with a new bathroom suite,
0:53:24 > 0:53:26tiles and flooring.
0:53:29 > 0:53:33The bedroom opposite was the epicentre of the smoke problems.
0:53:35 > 0:53:36No more.
0:53:38 > 0:53:42The neutral colours and carpets run throughout the other bedrooms.
0:54:05 > 0:54:08Mick had a landscape company sort out the garden,
0:54:08 > 0:54:11providing a new vista for the new windows.
0:54:13 > 0:54:17# Show me why... #
0:54:17 > 0:54:19But what caused the large overrun?
0:54:20 > 0:54:24With getting people involved that have full-time trades as it is,
0:54:24 > 0:54:27it's getting them to squeeze in
0:54:27 > 0:54:30and fit you in around their working time schedules.
0:54:30 > 0:54:33So I think, all in all, the actual time spent on the house is
0:54:33 > 0:54:36probably 12 weeks, but it's took seven months turnaround.
0:54:37 > 0:54:40And did that delay have an impact on the budget?
0:54:40 > 0:54:43The initial budget, I would like to have kept under seven,
0:54:43 > 0:54:46I was hoping round about five.
0:54:46 > 0:54:49But as you can see, with new radiators, new windows,
0:54:49 > 0:54:51you know, a fantastic kitchen in there,
0:54:51 > 0:54:55new bathroom, I've took it to probably around about 15.
0:54:55 > 0:54:59But I knew that, to be fair, what was in the property,
0:54:59 > 0:55:00that it was worth spending on.
0:55:00 > 0:55:03Well, we'll see about that when we get the valuations.
0:55:03 > 0:55:05Anything learnt in the process?
0:55:05 > 0:55:08The main thing that I've obviously learned from this,
0:55:08 > 0:55:11the first time experience, is to come and look at the property
0:55:11 > 0:55:14and judge what it is that you need to do on the property.
0:55:14 > 0:55:18I think because I knew there was a potential profit in the property,
0:55:18 > 0:55:20I was probably a little bit lax on the spending,
0:55:20 > 0:55:23thinking there's still profit to be made, that's not a problem.
0:55:23 > 0:55:26I am quite relaxed, but I think in future, I need to set myself
0:55:26 > 0:55:30goals and targets to say it needs to be in for that, and then I have a
0:55:30 > 0:55:34potential overrun of a couple of thousand and not overrun by seven.
0:55:36 > 0:55:39The initial intention was to renovate and resell quickly,
0:55:39 > 0:55:44known in the trade as flipping. So has the overspend compromised this?
0:55:44 > 0:55:46I'm looking to still sell the property.
0:55:46 > 0:55:49There's still a nice little mark-up here for me.
0:55:49 > 0:55:53I'd like to release some money and either put it into another property
0:55:53 > 0:55:57to renovate or maybe split that between two properties to let out.
0:55:58 > 0:56:00Time to find out the money situation.
0:56:00 > 0:56:02We called in two local property experts
0:56:02 > 0:56:04to get their opinions and valuations.
0:56:06 > 0:56:11We have got a very high demand of the properties in this area
0:56:11 > 0:56:15because it's close to city centre, close to school, close to parks.
0:56:15 > 0:56:17The layout of the property does work for me.
0:56:17 > 0:56:20I think it would be really good for families, especially with
0:56:20 > 0:56:23the open sort of kitchen/diner and then through to the lounge as well.
0:56:23 > 0:56:26And Mick's overspend? Was it offside?
0:56:26 > 0:56:29He's hoping to sell, but just for nosiness,
0:56:29 > 0:56:31what could this house rent for?
0:56:31 > 0:56:37This property can achieve a rental value of £550
0:56:37 > 0:56:38per calendar month.
0:56:38 > 0:56:40On the rental market, I think this property would
0:56:40 > 0:56:42achieve £500 per calendar month.
0:56:42 > 0:56:44Taking the top figure,
0:56:44 > 0:56:48that makes Mick's potential yield just under 7%.
0:56:48 > 0:56:51The evaluations are coming in as I would have thought,
0:56:51 > 0:56:54between five... I was quite surprised about £550, to be fair.
0:56:54 > 0:56:56But if someone wants to pay £550,
0:56:56 > 0:56:58if I was letting it, that would be great.
0:56:58 > 0:57:01Now the all-important sales figure.
0:57:01 > 0:57:04Mick's total spend to date is 94 and a half grand.
0:57:05 > 0:57:11I would put this property on the market for £115,000.
0:57:11 > 0:57:15On the sales market, I think this property would achieve £110,000.
0:57:15 > 0:57:19Again, taking the top figure, that gives Mick a potential profit
0:57:19 > 0:57:24of £20,500 minus the usual taxes and expenses.
0:57:24 > 0:57:27I think the valuations that they've given at the moment
0:57:27 > 0:57:30are a little low. To myself, I've been marketing
0:57:30 > 0:57:32it round about the 120 mark.
0:57:32 > 0:57:34If they want to come down a little bit...
0:57:34 > 0:57:36But I think they're getting a brand-new house here.
0:57:36 > 0:57:39If you buy a house for 110 or 115 anywhere near here,
0:57:39 > 0:57:41you've got a lot of work to do to it.
0:57:41 > 0:57:43You've got to change somebody else's colour scheme,
0:57:43 > 0:57:45make some alterations. This is a brand-new house.
0:57:45 > 0:57:47Any flipping tips going forward?
0:57:47 > 0:57:49Auctions is the way forward for me.
0:57:49 > 0:57:51I think that's where, if there is any market or
0:57:51 > 0:57:53any profit margin to be
0:57:53 > 0:57:57made on a property, then I think you have to buy from an auction.
0:57:57 > 0:58:00If you read the packs and look at the property.
0:58:03 > 0:58:07Well, that is today's auction action over.
0:58:07 > 0:58:08Yeah, well, don't worry cos
0:58:08 > 0:58:11- we've got loads more stories to tell.- Oh, we certainly do.
0:58:11 > 0:58:14So make sure you join us next time for more Homes Under The Hammer.
0:58:14 > 0:58:16- We'll see you then. - Goodbye.- Goodbye.