0:00:02 > 0:00:06Hello and welcome to the programme. Now, over the years, we've met literally thousands of people
0:00:06 > 0:00:08who've spent their money on auction property.
0:00:08 > 0:00:09Yes, we have, Martin.
0:00:09 > 0:00:11Loads and loads of people have been successful
0:00:11 > 0:00:13but we've been working too hard
0:00:13 > 0:00:16and I think we need an extra pair of hands to help us along
0:00:16 > 0:00:18- to meet some more people.- We do. - We've got just that person.
0:00:18 > 0:00:21Brand-new member of the team, Martel Maxwell.
0:00:21 > 0:00:24- Hello!- Hiya.- Nice to meet you. - Thank you.
0:00:24 > 0:00:27Property's a real passion of mine and I can't wait to travel
0:00:27 > 0:00:29the length and breadth of the country,
0:00:29 > 0:00:31just seeing what's on offer under the hammer.
0:00:57 > 0:01:00When it comes to buying at auction,
0:01:00 > 0:01:02you've really got to do your research,
0:01:02 > 0:01:05and one thing, Martel, always expect the unexpected.
0:01:05 > 0:01:07Well, I know from my own experience, Martin,
0:01:07 > 0:01:09that really is certainly the case.
0:01:09 > 0:01:12There are so many pitfalls and traps you can fall into,
0:01:12 > 0:01:14especially when there's a lot of money at stake.
0:01:14 > 0:01:16Yeah, but if you get it right,
0:01:16 > 0:01:18it can be a lucrative and enjoyable business.
0:01:18 > 0:01:22Let's find out if the buyers on today's show rose to the challenge.
0:01:23 > 0:01:25First up, I'm in Godalming, Surrey,
0:01:25 > 0:01:27and I may be new here but I know my stuff.
0:01:28 > 0:01:31I'd say that toilet's definitely blocked.
0:01:33 > 0:01:34And in St Georges, Telford,
0:01:34 > 0:01:38I've been around long enough to spot a hazard or two.
0:01:38 > 0:01:41Yeah, this is definitely looking like hard hat territory.
0:01:43 > 0:01:45Whilst in Smethwick, West Midlands,
0:01:45 > 0:01:48all you need is a little know-how and imagination.
0:01:48 > 0:01:51Some stools on this side, sit down, have your breakfast,
0:01:51 > 0:01:53two or three of you.
0:01:55 > 0:01:57All these properties have been sold at auction.
0:01:57 > 0:01:59We'll find out who bought them and what they paid for them
0:01:59 > 0:02:01when they went under the hammer.
0:02:01 > 0:02:02Your lot, sir, well done.
0:02:06 > 0:02:09MARTEL: This popular market town in Surrey is called Godalming.
0:02:09 > 0:02:13There are plenty of historic buildings with the River Wey
0:02:13 > 0:02:15winding its way through the town,
0:02:15 > 0:02:18and there are some lovely riverside walks to enjoy.
0:02:18 > 0:02:20Godalming has a place in history.
0:02:20 > 0:02:25It was the first UK town to offer electricity to consumers in 1881,
0:02:25 > 0:02:28when they used surplus power from street lighting
0:02:28 > 0:02:30powered by a water wheel.
0:02:30 > 0:02:32Sadly, technical issues meant
0:02:32 > 0:02:36the town had to revert back to gas lighting until 1904.
0:02:36 > 0:02:41# Electricity... #
0:02:43 > 0:02:46This street is around a ten-minute walk from Godalming High Street.
0:02:46 > 0:02:49And I'm told it's a very desirable part of town.
0:02:49 > 0:02:50So far, so good.
0:02:50 > 0:02:53I'm here to see this two-bedroom ground floor flat
0:02:53 > 0:02:56with a guide price of £140,000.
0:02:56 > 0:02:58It's in this building.
0:02:58 > 0:03:01I'm happy with that. Let's hope it continues.
0:03:03 > 0:03:06This is one of four flats in a very impressive building,
0:03:06 > 0:03:09and the entrance to this one is tucked around the back.
0:03:11 > 0:03:14So, in we come to a very small vestibule.
0:03:14 > 0:03:17Nice tiles. Through to...
0:03:17 > 0:03:19Ah, now, I thought this would have been a hall
0:03:19 > 0:03:22but actually, it's a square reception room,
0:03:22 > 0:03:27which is quite solid, dated, textured ceiling needs replaced,
0:03:27 > 0:03:30and you've... All your rooms are off this one room.
0:03:30 > 0:03:32So, you have your small bedroom,
0:03:32 > 0:03:36not much more room in there than a double bed, really.
0:03:36 > 0:03:39And a kitchen,
0:03:39 > 0:03:41a pretty pokey kitchen at that.
0:03:41 > 0:03:45And then, behind that kitchen, you have your shower room.
0:03:45 > 0:03:47This, I'm pretty sure,
0:03:47 > 0:03:51was a one-bedroom flat and it's been changed into a two-bed
0:03:51 > 0:03:53because this would have been the bathroom at one stage
0:03:53 > 0:03:56and your smaller bedroom would have been the kitchen.
0:03:56 > 0:03:58That makes sense, so it has been converted.
0:03:58 > 0:04:02Good news, you've got some central heating, double-glazed windows.
0:04:02 > 0:04:06And through we come to the main bedroom.
0:04:06 > 0:04:07Now, this is nice.
0:04:07 > 0:04:10What a shame this isn't the reception room, though.
0:04:10 > 0:04:14You've got light flooding in, beautiful big bay windows,
0:04:14 > 0:04:18and you've got some nice character, which the other rooms are lacking.
0:04:18 > 0:04:19I like this a lot.
0:04:19 > 0:04:23If only you could have your entrance right here.
0:04:23 > 0:04:25But it might be tricky to put a door here
0:04:25 > 0:04:29because on the other side of this wall is an entrance hallway
0:04:29 > 0:04:31for the other flats in the house.
0:04:31 > 0:04:34Like many flats, this one is leasehold.
0:04:34 > 0:04:38A new 99 years lease will be granted upon completion of the purchase.
0:04:40 > 0:04:43So far, things don't look in too bad condition.
0:04:43 > 0:04:46In the bathroom... Ah, I spoke too soon.
0:04:46 > 0:04:48So, I don't know what's happened here,
0:04:48 > 0:04:50if there's been some sort of flood
0:04:50 > 0:04:53but it definitely requires some investigation.
0:04:53 > 0:04:55This bathroom is... Well, it doesn't have a bath in it.
0:04:55 > 0:04:56It's very small.
0:04:56 > 0:04:59Ideally, you would want a bath, perhaps with a shower in it.
0:04:59 > 0:05:02Pretty cramped, but maybe doable.
0:05:02 > 0:05:08And now, I'm no plumber, but I'd say that toilet's definitely blocked.
0:05:10 > 0:05:14Moving swiftly on, there's a bit of a clear-out needed here.
0:05:14 > 0:05:16But there are bigger problems to sort.
0:05:18 > 0:05:20The layout doesn't quite work.
0:05:20 > 0:05:22You're walking into your sitting room,
0:05:22 > 0:05:25you've got a pokey, wee kitchen and behind that,
0:05:25 > 0:05:26you've got your shower room.
0:05:26 > 0:05:29But what are the options to make it work?
0:05:29 > 0:05:33Well, I guess you could revert back to being a spacious one-bedroom.
0:05:33 > 0:05:34That would be nice.
0:05:34 > 0:05:37But of course, it would bring down your property value
0:05:37 > 0:05:40and I'm guessing that's why they upped it in the first place.
0:05:40 > 0:05:43You could also bring your kitchen out here and have a really nice
0:05:43 > 0:05:46open living space, although it would be pretty small.
0:05:46 > 0:05:49Or, as long as you have your new kitchen, new bathroom,
0:05:49 > 0:05:53everything's spick and span, you could keep it as it is.
0:05:53 > 0:05:55So, I guess there are a few options worth considering.
0:05:58 > 0:06:02We called on the services of a local estate agent for her opinions.
0:06:02 > 0:06:04One thing she approved of is the entrance to the flat.
0:06:06 > 0:06:09'People like their privacy of shutting their own front door
0:06:09 > 0:06:13'rather than going into and maintaining a communal area.'
0:06:13 > 0:06:15Any other plus points?
0:06:15 > 0:06:17This is a very desirable location.
0:06:17 > 0:06:21It has major routes into Guildford and London,
0:06:21 > 0:06:23and Portsmouth and to the A3.
0:06:23 > 0:06:27So, would having two bedrooms be another plus point
0:06:27 > 0:06:28in terms of sales values?
0:06:28 > 0:06:30To have this as a two-bedroom
0:06:30 > 0:06:33wouldn't command a great deal of difference in money.
0:06:33 > 0:06:38I think a very modern, high spec one-bedroom
0:06:38 > 0:06:43would probably command similar to a two-bedroom.
0:06:43 > 0:06:46Interesting. Either way, if you could get the flat
0:06:46 > 0:06:49for anything like the £140,000 guide price,
0:06:49 > 0:06:52what could it sell for, once renovated?
0:06:52 > 0:06:57As a one-bed, £230,000 on sale.
0:06:57 > 0:07:02As a two-bedroom property, a sales value of £245,000.
0:07:02 > 0:07:08The agent thought the rental values would be £995 per calendar month
0:07:08 > 0:07:11for a one-bed and 1,050 per calendar month for a two.
0:07:13 > 0:07:17This property does need work and I'm not convinced about the layout
0:07:17 > 0:07:19but it could make a great home for someone
0:07:19 > 0:07:22and it's a very desirable location.
0:07:22 > 0:07:25Let's see who saw the potential when it went to auction.
0:07:25 > 0:07:27Lot 72.
0:07:27 > 0:07:30Really, really like Godalming.
0:07:31 > 0:07:32150, anywhere?
0:07:33 > 0:07:35150 with you, sir.
0:07:35 > 0:07:38155. 160.
0:07:38 > 0:07:41165. 170.
0:07:41 > 0:07:44175. 180.
0:07:44 > 0:07:47185. 185, a new spot.
0:07:47 > 0:07:51190. 195.
0:07:51 > 0:07:54At the back? Back to you.
0:07:54 > 0:07:57190. 192, if it helps.
0:07:57 > 0:07:59Yes?
0:07:59 > 0:08:01190. 2,000 anywhere?
0:08:01 > 0:08:05If not, 190, first time...
0:08:05 > 0:08:08192, well done. 194.
0:08:08 > 0:08:11196. 198.
0:08:11 > 0:08:13200, sir?
0:08:13 > 0:08:15198 first time, second time,
0:08:16 > 0:08:18third and last time if you're all done.
0:08:20 > 0:08:21Sold, 198.
0:08:23 > 0:08:27Unfortunately, our cameras didn't catch the successful bidder, Raj,
0:08:27 > 0:08:30who was at the auction bidding for himself and his wife, Diana.
0:08:30 > 0:08:33They live nearby and had considered purchasing a house
0:08:33 > 0:08:35rather than a flat,
0:08:35 > 0:08:38but the ones in their price bracket needed too much work.
0:08:38 > 0:08:44So, time to find out about their plans for their £198,000 purchase.
0:08:44 > 0:08:48- Raj?- Hi.- Hi. Diana? - Hi, nice to meet you.
0:08:48 > 0:08:50- Congratulations.- Thank you. - Thank you very much.
0:08:50 > 0:08:52So, was this your first auction?
0:08:52 > 0:08:55- Yes.- Yes. - OK, talk me through that.
0:08:55 > 0:08:58- Was it exciting?- Before we got to my lot, I was quite calm,
0:08:58 > 0:09:01but at the moment it came to lot 72, that was it.
0:09:01 > 0:09:03Did you get carried away?
0:09:03 > 0:09:06No, I think... I hope I didn't. I don't know.
0:09:06 > 0:09:09- Diana was watching it on the web. - I was watching live.
0:09:09 > 0:09:11I see, you were watching live.
0:09:11 > 0:09:13- But you couldn't communicate?- No.
0:09:13 > 0:09:16The couple had agreed to a top bid of 200,000,
0:09:16 > 0:09:18so just got under the wire,
0:09:18 > 0:09:21and although this is their first project, they've done refurbishments
0:09:21 > 0:09:23on their own properties in the past.
0:09:23 > 0:09:24So, how is that experience?
0:09:24 > 0:09:26It's very difficult to live in a house
0:09:26 > 0:09:29- and do a project at the same time. - Yeah.
0:09:29 > 0:09:31Whereas at least this place will be empty,
0:09:31 > 0:09:34so it should be easier to manage.
0:09:34 > 0:09:37And do you plan to rent it on or sell it?
0:09:37 > 0:09:39- Hm.- We're undecided. - Yeah.- Oh, OK.
0:09:39 > 0:09:43I think we just have to wait to see how the numbers really stack up.
0:09:43 > 0:09:45Because that's the key for us.
0:09:45 > 0:09:47If we were doing this as our business,
0:09:47 > 0:09:50this would be our livelihood, so we need to see whether we can recycle
0:09:50 > 0:09:54enough out of the property to do the next venture, whether that...
0:09:54 > 0:09:56Hopefully, if we can keep it, great.
0:09:56 > 0:09:57If we can't, then we'll sell on
0:09:57 > 0:10:00and then we'll move on to our next property. That's the plan.
0:10:00 > 0:10:03Diana and Raj have just returned from seven years abroad
0:10:03 > 0:10:07and property development is quite a career departure for them.
0:10:08 > 0:10:11Raj was a subject matter expert for a facilities company,
0:10:11 > 0:10:13whilst Diana...
0:10:13 > 0:10:16I was on overseas postings with the Foreign Office.
0:10:16 > 0:10:19We were in Bangladesh, Egypt, and most recently, Abu Dhabi.
0:10:19 > 0:10:22Wow, that's exciting.
0:10:22 > 0:10:24What's it's like coming back?
0:10:24 > 0:10:26- Er...- Cold.- Yeah!
0:10:28 > 0:10:31After those exotic places, no surprise.
0:10:31 > 0:10:34One thing they have looked into is the hole in the bathroom ceiling.
0:10:34 > 0:10:37It would appear that some bees have made their home
0:10:37 > 0:10:39in that cosy insulation. So, what's the plan?
0:10:41 > 0:10:42That's just a cosmetic fix.
0:10:42 > 0:10:46As long as the hive's dead, which I'm pretty sure it is,
0:10:46 > 0:10:49it will just be a cosmetic repair. There's no real issues there at all.
0:10:49 > 0:10:52How hands-on do you intend to be?
0:10:52 > 0:10:54Very hands-on. I'm a qualified electrician,
0:10:54 > 0:10:59so there's nothing in here that I can't do, or am afraid of doing.
0:10:59 > 0:11:02So, the only thing we will do professionally,
0:11:02 > 0:11:04or get in professionals for, is the gas work.
0:11:04 > 0:11:06We get gas-safe engineers to do that work.
0:11:06 > 0:11:08But the rest of it, it's fine.
0:11:08 > 0:11:10- Doesn't faze you one bit? - Not at all.
0:11:10 > 0:11:12Well, let's talk through your plans for the interior.
0:11:12 > 0:11:14What do you want to do inside?
0:11:14 > 0:11:16- Your bit. The design aspect. - New flooring throughout.
0:11:16 > 0:11:17So, you're design?
0:11:17 > 0:11:21You're taking charge of the electrics?
0:11:21 > 0:11:25That's it. Ideas and implementation. That's how it works.
0:11:25 > 0:11:29Oak flooring here in this room and in the bedrooms.
0:11:29 > 0:11:32Tiling in the bathroom and the kitchen.
0:11:32 > 0:11:34New bathroom, new kitchen.
0:11:36 > 0:11:38- Relocate the boiler.- Yeah.
0:11:38 > 0:11:42And actually, make a lot better space usage than at the moment,
0:11:42 > 0:11:43because it's pretty poor.
0:11:43 > 0:11:46Do you intend to change anything about the layout?
0:11:46 > 0:11:48We looked at three different options
0:11:48 > 0:11:50about what we could do with the layout.
0:11:50 > 0:11:55And one of those was to turn it back into a one-bed.
0:11:55 > 0:11:58But then, the numbers don't stack up to do that.
0:11:58 > 0:12:04You would get a very good one-bed, because the front bedroom is huge,
0:12:04 > 0:12:05and that's lovely.
0:12:05 > 0:12:08But then you would have a good-sized bathroom and kitchen
0:12:08 > 0:12:11but then there's no place to escape for somebody who wants,
0:12:11 > 0:12:14perhaps, an office or a study, or a second bedroom.
0:12:14 > 0:12:17We're going to move the boiler from the bathroom to the kitchen.
0:12:19 > 0:12:22We're hoping to get a really small-sized bath,
0:12:22 > 0:12:26so we can have a small bathtub but with a shower.
0:12:26 > 0:12:29And be a bit clever about the space with the cupboards
0:12:29 > 0:12:31and the design of the kitchen.
0:12:32 > 0:12:34Using the space well will be key.
0:12:34 > 0:12:36They hope to get it done in 12 weeks
0:12:36 > 0:12:39and they set aside a budget of £15,000,
0:12:39 > 0:12:44so not including fees, that would bring their spend to 213,000.
0:12:44 > 0:12:48The agent thought a two-bed could sell for 245,
0:12:48 > 0:12:50so there's a bit of wiggle room.
0:12:52 > 0:12:54Do you have any other plans for any...?
0:12:54 > 0:12:57- To add a bit more character to the place?- Yeah.
0:12:57 > 0:13:00Yeah, we have an old fireplace in our garage,
0:13:00 > 0:13:02which we've had for years.
0:13:02 > 0:13:04So, we're hoping to put that in the reception room.
0:13:04 > 0:13:07Well, I can't wait to see what you do with the place.
0:13:07 > 0:13:10- Best of luck.- Thank you. - Congratulations again.- Thank you.
0:13:10 > 0:13:13- Looking forward to seeing the end product ourselves.- Me too!
0:13:14 > 0:13:17It's all change for Raj and Diana.
0:13:17 > 0:13:19They've recently moved back to the UK
0:13:19 > 0:13:20and now it's time to embark
0:13:20 > 0:13:23on their exciting property development career.
0:13:23 > 0:13:26How will it all go for them? You can find out later in the show.
0:13:31 > 0:13:35MARTIN: Telford in Shropshire now, and the suburb of St Georges.
0:13:35 > 0:13:37Telford grew in the '60s and '70s
0:13:37 > 0:13:40by forming several smaller settlements together
0:13:40 > 0:13:42and St Georges here was one of them.
0:13:45 > 0:13:46Well, I'm here to see a property
0:13:46 > 0:13:50that had a guide price of just £27,500.
0:13:50 > 0:13:54That doesn't sound a lot, given its location and apparent size.
0:13:55 > 0:13:59However, I am a bit suspicious.
0:13:59 > 0:14:01Still, how bad can it be, eh?
0:14:06 > 0:14:08Oh, dear.
0:14:08 > 0:14:12Yeah, this is definitely looking like hard hat territory.
0:14:16 > 0:14:19Right, well, for once,
0:14:20 > 0:14:27this is actually much, much, MUCH worse than it looks on the outside!
0:14:28 > 0:14:32Holy mackerel. What has gone on here?
0:14:32 > 0:14:35We're basically left with a shell, a very dangerous shell.
0:14:35 > 0:14:38I'm very glad I'm wearing this hat.
0:14:38 > 0:14:40If you were to come and look at this property,
0:14:40 > 0:14:44you would definitely have to be careful about your security
0:14:44 > 0:14:47and your safety, because you just don't know what kind of condition
0:14:47 > 0:14:49these floorboards are in.
0:14:49 > 0:14:53I've taken some advice, and apparently it is OK to walk on.
0:14:53 > 0:14:58But wow. This is like one of those sort of diagrams of a house,
0:14:58 > 0:15:01cut away, so you can see exactly how it's all built.
0:15:01 > 0:15:05Amazing! Let's go down from this floor,
0:15:05 > 0:15:08down the staircase.
0:15:12 > 0:15:15To what I guess was either a basement or the ground floor.
0:15:15 > 0:15:18You can see all the stonework is revealed.
0:15:19 > 0:15:21No damp proof, course, obviously.
0:15:21 > 0:15:24I mean, no nothing, I mean, don't take anything for granted here.
0:15:24 > 0:15:28This is a massive, massive, massive project.
0:15:28 > 0:15:31Erm, can I see any positives?
0:15:31 > 0:15:33It's going to all come down to the price.
0:15:33 > 0:15:37If you get this at a good price, perhaps it's worth doing.
0:15:39 > 0:15:42But the budget for doing it is going to be quite high.
0:15:45 > 0:15:48# How high is high?
0:15:48 > 0:15:51- # How low - How low is low
0:15:51 > 0:15:54- # Somebody tell me - Somebody tell me
0:15:54 > 0:15:55# Mm, yeah! #
0:15:55 > 0:15:58Speaking of high, there is a top floor,
0:15:58 > 0:16:01but if anything, it's worse than the lower floors.
0:16:01 > 0:16:04I'm told that there was a former hairdresser's on the ground floor
0:16:04 > 0:16:06and a flat above.
0:16:06 > 0:16:09They were stripped out for renovations nearly 20 years ago
0:16:09 > 0:16:11and it's stood like this since.
0:16:11 > 0:16:14It's certainly going to need a full makeover now.
0:16:17 > 0:16:20Right, OK, well... HE LAUGHS
0:16:20 > 0:16:23I thought it couldn't get any worse. I'm afraid it does.
0:16:23 > 0:16:26Unfortunately, I was just glancing up there,
0:16:26 > 0:16:30and it looks to me like there's a bow in this rear wall.
0:16:30 > 0:16:32So, you're going to have to really concentrate on that wall
0:16:32 > 0:16:34and that's going to be expensive.
0:16:34 > 0:16:35It could mean replacing the whole thing.
0:16:35 > 0:16:37You don't know about the foundations.
0:16:37 > 0:16:40Erm... HE SIGHS
0:16:40 > 0:16:42You just have to assume you'll have to do everything, basically.
0:16:42 > 0:16:45The good news is, though, again when it's finished,
0:16:45 > 0:16:47a really nice-looking property and it benefits from this garden.
0:16:47 > 0:16:49Now, it's very, very, very overgrown.
0:16:49 > 0:16:51I can't even see the end there but it looks to me
0:16:51 > 0:16:56like it's very extensive. It might even have some views.
0:16:56 > 0:17:00So, in terms of where it is and what we've got once you've done it,
0:17:00 > 0:17:01yeah, it's got a lot going for it.
0:17:01 > 0:17:04But to get to that point, a few little hurdlettes.
0:17:04 > 0:17:06- # Might as well jump - Jump!
0:17:08 > 0:17:09# Might as well jump
0:17:11 > 0:17:13# Go ahead, jump! #
0:17:14 > 0:17:18OK, not hurdlettes, more like stonking great high jumps.
0:17:18 > 0:17:21Now, I do love brick as a material but in this case,
0:17:21 > 0:17:25I think there are structural issues that need to be explored.
0:17:25 > 0:17:29It's a mid-terrace, so access to the back with building materials
0:17:29 > 0:17:31is going to be tricky, and of course,
0:17:31 > 0:17:33even if it's saleable, then what?
0:17:33 > 0:17:36Retail units downstairs and a flat above?
0:17:36 > 0:17:37Could it be a house?
0:17:37 > 0:17:39Given its previous mixed use,
0:17:39 > 0:17:41that would mean a chat with planning, for sure.
0:17:43 > 0:17:45To try and focus on the best solution,
0:17:45 > 0:17:48we asked along a local estate agent to look at the property,
0:17:48 > 0:17:51which was guided at £27,500.
0:17:53 > 0:17:55I think the best use would be full residential.
0:17:55 > 0:18:00Erm, maybe two flats made out of it or one single family home.
0:18:00 > 0:18:02Personally, I probably wouldn't touch this.
0:18:02 > 0:18:05I think it's quite a big challenge and I think the budget
0:18:05 > 0:18:07could easily run away with you on this one.
0:18:07 > 0:18:09So, the agent isn't too keen himself.
0:18:09 > 0:18:12But let's look at the options he's mentioned
0:18:12 > 0:18:15and what rentals could be expected once work is complete.
0:18:17 > 0:18:21As a two-bedroom flat, I think we could ask £550 per calendar month.
0:18:21 > 0:18:24As a three-bed house, I think we could ask somewhere in the order of
0:18:24 > 0:18:26about £700 per calendar month.
0:18:26 > 0:18:29And how about sales figures?
0:18:29 > 0:18:31I think potentially if the property were a two-bedroom flat,
0:18:31 > 0:18:32or two two-bedroom flats,
0:18:32 > 0:18:37we could seek somewhere in the region of maybe £75,000, £80,000,
0:18:37 > 0:18:38somewhere in that order.
0:18:38 > 0:18:41As a single family home, I would suggest
0:18:41 > 0:18:44probably something in the order of about £150,000.
0:18:44 > 0:18:47It's definitely one that you need to see beforehand!
0:18:47 > 0:18:50Who wasn't put off by the state of this property?
0:18:50 > 0:18:52Who saw the potential?
0:18:52 > 0:18:54Let's find out when it went under the hammer.
0:18:58 > 0:18:59Well, it's a mid-terrace property,
0:18:59 > 0:19:02it is in need of renovation and repair.
0:19:02 > 0:19:05It's over three floors and it has an extensive rear garden.
0:19:06 > 0:19:08Can I say 25 to start?
0:19:08 > 0:19:1125 to start. 25, thank you, in the aisle, at £25,000.
0:19:11 > 0:19:13I'm going once. Yeah?
0:19:13 > 0:19:1626. 27.
0:19:16 > 0:19:1928. 29.
0:19:19 > 0:19:22Bid's in the room at 29,000. Looking for 30 now.
0:19:22 > 0:19:23I'll take 500 if it helps.
0:19:23 > 0:19:27At... You're back in. 29 and a half. 30.
0:19:28 > 0:19:30Shaking your head. 30 with you, still in the aisle.
0:19:30 > 0:19:33At 30,000. Another 500 anywhere else?
0:19:35 > 0:19:38If not, I'm selling it, then, at 30.
0:19:38 > 0:19:40£30,000 once, then.
0:19:41 > 0:19:43£30,000 twice.
0:19:43 > 0:19:47Third and final time. £30,000.
0:19:47 > 0:19:48You've bought it. Well done.
0:19:49 > 0:19:53- # Can't you see me? - Can't you see me?
0:19:53 > 0:19:54# I'm all yours... #
0:19:54 > 0:19:56Now, we couldn't see the successful bidder,
0:19:56 > 0:19:59who was just out of sight of our cameras.
0:19:59 > 0:20:02Getting the lot for £30,000 was Dave,
0:20:02 > 0:20:05who runs a property development company with his son Tim
0:20:05 > 0:20:06and a team of two.
0:20:06 > 0:20:10So, it's time to don the hard hats and find out about the plans.
0:20:10 > 0:20:14- Dave, good to meet you.- Hiya.- I hope you're a man who likes a challenge.
0:20:14 > 0:20:16Well, we've definitely got one here!
0:20:16 > 0:20:19Tell me why you wanted to buy this house.
0:20:19 > 0:20:21Well, house...shell.
0:20:21 > 0:20:23We're in the property development game
0:20:23 > 0:20:25- and it looked a good project to do. - Right.
0:20:25 > 0:20:28And probably most importantly, you got it at a good price.
0:20:28 > 0:20:30- Yeah. 30,000, so...- Right.
0:20:30 > 0:20:35Have you, in your career, come across properties like this?
0:20:35 > 0:20:38Not as bad as this one, no. We've challenged some...
0:20:38 > 0:20:40We've tried, we've done a lot, but not this one.
0:20:40 > 0:20:44So, first glance, having now bought it, what are your sort of...?
0:20:44 > 0:20:45What's your gut feeling?
0:20:45 > 0:20:48My gut feeling is it's going to have to have a new roof.
0:20:48 > 0:20:50Obviously, new floors throughout.
0:20:50 > 0:20:52Everything, rewire, replumb.
0:20:52 > 0:20:53And, uh...
0:20:53 > 0:20:56The first challenge is to get the planning permission in on it.
0:20:56 > 0:20:59Because it's currently part commercial, part domestic.
0:20:59 > 0:21:01- Right.- So, we've got to get the planning permission.
0:21:01 > 0:21:05And almost certainly, we're going to turn it into one property.
0:21:05 > 0:21:06- Right.- It's too tight to turn it into two.
0:21:06 > 0:21:10Basic plan is to turn it into a three-bed single property.
0:21:10 > 0:21:13If we can get permission to get an access off the highway,
0:21:13 > 0:21:16we'd turn that one side over there into a parking bay.
0:21:16 > 0:21:18- OK.- So, we've got some off-street parking.
0:21:18 > 0:21:21- Right.- Which will help sell it when it's finished.
0:21:21 > 0:21:22Right. OK.
0:21:22 > 0:21:25And then, in terms of design, any ideas on that?
0:21:25 > 0:21:27Yeah, I've designed out this basement area.
0:21:27 > 0:21:29Where we're standing will be a garden room
0:21:29 > 0:21:32with glass doors out the back there onto the garden.
0:21:32 > 0:21:33Right. And then the next floor?
0:21:33 > 0:21:37The next floor will be the car bay and a living room/study.
0:21:37 > 0:21:40Right. And then, three bedrooms further up?
0:21:40 > 0:21:42- Three bedrooms and a bathroom upstairs.- Great.
0:21:42 > 0:21:45Enough space for all of that? You've obviously measured it out.
0:21:45 > 0:21:47- The footprint is quite high. - Yes, it is, yeah.
0:21:47 > 0:21:48If we get tight with space,
0:21:48 > 0:21:51we'll put a three-metre single-storey extension on the back.
0:21:51 > 0:21:52OK. What about the garden?
0:21:52 > 0:21:55Because I have this feeling the garden could actually be...
0:21:55 > 0:21:57It's a mess at the moment but it could actually be quite nice.
0:21:57 > 0:22:00- You've got views out there. - I think it's the main point of this property.
0:22:00 > 0:22:04If we turn this here into a garden room with big glass doors there,
0:22:04 > 0:22:07garden there, it's nearly 100 yards to the bottom of that garden.
0:22:07 > 0:22:10Is it really? You've managed to discover the bottom?
0:22:10 > 0:22:12I haven't got there yet. I measured it on a plan!
0:22:13 > 0:22:15You did, so somewhere down there...
0:22:15 > 0:22:17And it looks like you might have even open views
0:22:17 > 0:22:20at the bottom as well, so great spot.
0:22:20 > 0:22:23Is there anything that could be a major issue?
0:22:23 > 0:22:26Obviously, planning is one. Let's assume you get the planning.
0:22:26 > 0:22:28What would be your biggest nightmare?
0:22:28 > 0:22:31I think the biggest nightmare is the walls when we take the roof off
0:22:31 > 0:22:34because there is a bow in the rear wall.
0:22:34 > 0:22:36We may have to take half the rear wall down.
0:22:36 > 0:22:39- Right.- And rebuild that.
0:22:39 > 0:22:40If we have to, we have to.
0:22:41 > 0:22:44If you're wondering why Dave is so sanguine, well,
0:22:44 > 0:22:46it's because he's a qualified engineer.
0:22:46 > 0:22:50So, rebuilding walls, tanking out basements and so on
0:22:50 > 0:22:51hold no fears for him.
0:22:53 > 0:22:56He's got a healthy-sounding £65,000 budget,
0:22:56 > 0:22:58but what's more, he thinks he can complete it
0:22:58 > 0:23:00in a five-month timescale.
0:23:00 > 0:23:02Oh, and he has three other renovation projects
0:23:02 > 0:23:03on the go just now.
0:23:03 > 0:23:06To say Dave likes challenges is an understatement.
0:23:09 > 0:23:11You, then, are you project managing this?
0:23:11 > 0:23:13I'll project manage it, yeah.
0:23:13 > 0:23:15Right, you don't actually get your fingers dirty?
0:23:15 > 0:23:16- I do the labouring and the cleaning up.- Do you?
0:23:16 > 0:23:19Yeah, I've got a team of lads that do all the skilled work.
0:23:19 > 0:23:21Right. Is it very much a one-man business,
0:23:21 > 0:23:24as in terms of it's your business? No, I'm in partnership with my son.
0:23:24 > 0:23:27- Oh, that's nice.- He's out working on another property at the moment.
0:23:27 > 0:23:29And does he approve of this purchase?
0:23:29 > 0:23:32- He thought I'd gone mad but... - Did he?
0:23:32 > 0:23:34- What did he say? - "What have you done this time?"
0:23:36 > 0:23:38We've got over it now. We're all right now.
0:23:38 > 0:23:39We know what we're doing.
0:23:39 > 0:23:41Listen, congratulations.
0:23:41 > 0:23:43A little bit of a challenge ahead
0:23:43 > 0:23:45- but I look forward to seeing how you get on.- OK, thanks very much.
0:23:48 > 0:23:49Well, with a project like this,
0:23:49 > 0:23:52it's all about buying the property at the right price
0:23:52 > 0:23:54and I think Dave certainly did that.
0:23:54 > 0:23:5930 grand, yeah, you might think he's a little bit crazy
0:23:59 > 0:24:02but no, no, no, look at those numbers.
0:24:02 > 0:24:04Lots of challenges ahead, though,
0:24:04 > 0:24:06and hopefully a massive transformation
0:24:06 > 0:24:08when we return later in the show.
0:24:11 > 0:24:13- DION:- Still to come in Smethwick, West Midlands,
0:24:13 > 0:24:16some things work alfresco, but not everything.
0:24:16 > 0:24:19Because who wants to go outside to go to the toilet?
0:24:19 > 0:24:20Not me.
0:24:22 > 0:24:23MARTIN: And in St Georges, Telford,
0:24:23 > 0:24:25Dave is concentrating on the positives.
0:24:25 > 0:24:28We've probably lost four, five months.
0:24:28 > 0:24:30It's given us time to think it through properly.
0:24:33 > 0:24:36MARTEL: We're returning now to Godalming, Surrey,
0:24:36 > 0:24:39where there are some early examples of timber-framed construction.
0:24:39 > 0:24:41And they said it wouldn't last.
0:24:41 > 0:24:45But I was there earlier to recce a two-bed ground-floor flat,
0:24:45 > 0:24:48one of four in this Victorian house conversion.
0:24:48 > 0:24:51It had one lovely, sunny, characterful room
0:24:51 > 0:24:55but after that, the layout seemed to reveal that this
0:24:55 > 0:24:58two-bed flat had once been a one-bed flat.
0:25:00 > 0:25:02The layout doesn't quite work.
0:25:02 > 0:25:04You're walking into your sitting room,
0:25:04 > 0:25:06you've got a pokey, wee kitchen
0:25:06 > 0:25:09and behind that, you've got your shower room.
0:25:09 > 0:25:11But what are the options to make it work?
0:25:11 > 0:25:15Well, I guess you could revert back to being a spacious one-bedroom.
0:25:15 > 0:25:17That would be nice,
0:25:17 > 0:25:20but of course, it would bring down your property value and I'm guessing
0:25:20 > 0:25:22that's why they upped it in the first place.
0:25:22 > 0:25:24And that was pretty much the conclusion
0:25:24 > 0:25:29buyers Diana and Raj came to when they bought it for £198,000.
0:25:29 > 0:25:33Their plan was to see how the figures stood up after refurbishment
0:25:33 > 0:25:36and then decide if it's for sale or rent.
0:25:36 > 0:25:40So, you view this as the start of a potential business?
0:25:40 > 0:25:42- Yeah.- Yes, absolutely.
0:25:42 > 0:25:46We've both given up work to do this.
0:25:46 > 0:25:49The couple had worked for the last seven years abroad
0:25:49 > 0:25:52and diplomat Diana took a career break to concentrate
0:25:52 > 0:25:55on designing the flat and Raj felt he had the right skill set
0:25:55 > 0:25:57for a hands-on approach.
0:25:58 > 0:25:59I'm a qualified electrician,
0:25:59 > 0:26:03so the only thing we'll get in professionals for is the gas work.
0:26:03 > 0:26:06There were holes in the second bedroom ceiling and in the bathroom.
0:26:06 > 0:26:08A beehive from between the joists
0:26:08 > 0:26:12had become a case of honeycomb in the WC. Never pleasant.
0:26:12 > 0:26:14But the couple thought they could flush
0:26:14 > 0:26:16all their problems away in 12 weeks.
0:26:16 > 0:26:20We're back just over 18 weeks later to see the results.
0:26:23 > 0:26:26Here comes the list of re-s and it's a big one.
0:26:26 > 0:26:30They've rewired, replumbed, replastered from back to brick,
0:26:30 > 0:26:35re-floored with oak flooring, and finally, redecorated.
0:26:35 > 0:26:36Re-markable!
0:26:43 > 0:26:45It may be on the small side
0:26:45 > 0:26:48but the bathroom can now live up to its name.
0:26:54 > 0:26:57The tiny kitchen space is used much more effectively.
0:27:02 > 0:27:06The second bedroom now doubles as an office but in the front bedroom,
0:27:06 > 0:27:09it does look like the big radiator planned for this corner wall
0:27:09 > 0:27:11didn't make the cut.
0:27:11 > 0:27:15But there's no doubt this part of the old Victorian house
0:27:15 > 0:27:18has had a final re-, a rebirth.
0:27:19 > 0:27:22But were there any unforeseen problems?
0:27:22 > 0:27:24Over to Diana.
0:27:24 > 0:27:26We initially wanted to put a Victorian fireplace here
0:27:26 > 0:27:28because we had one in our garage,
0:27:28 > 0:27:32but we discovered that the upstairs flat have taken away their chimney,
0:27:32 > 0:27:36so it would have been a nice feature but completely useless.
0:27:36 > 0:27:38So, we got this instead, which I think looks really good.
0:27:38 > 0:27:42Some excellent ideas. But who had the most design input?
0:27:42 > 0:27:46Mainly me, although Raj did have a few ideas.
0:27:46 > 0:27:47We tried nought.
0:27:50 > 0:27:53But one of Raj's ideas did pass muster.
0:27:53 > 0:27:56A vaulted-ceiling entrance hall.
0:27:56 > 0:27:58I think it looks really good.
0:27:58 > 0:27:59I'll agree.
0:28:00 > 0:28:03There's an eclectic range of furniture dressing the property,
0:28:03 > 0:28:05like this lazy butler,
0:28:05 > 0:28:07which the couple bought in their time in Egypt.
0:28:07 > 0:28:10Something that was a little too antique
0:28:10 > 0:28:13was Raj's qualifications as a sparky.
0:28:13 > 0:28:16They had to enlist help on the rewiring front.
0:28:16 > 0:28:19We got a great plasterer and he's a local chap,
0:28:19 > 0:28:23and we had his son who came in and helped out with the signing off
0:28:23 > 0:28:24on the electrical work.
0:28:24 > 0:28:26Although I'm a qualified electrician,
0:28:26 > 0:28:28I needed to be up to current regulations,
0:28:28 > 0:28:31so he was able to do that and we were very, very lucky
0:28:31 > 0:28:33with those two particular chaps.
0:28:33 > 0:28:36So, Raj did the bulk of the work but it was checked and connected
0:28:36 > 0:28:38by an up-to-date electrician.
0:28:38 > 0:28:39So, to sum up...
0:28:39 > 0:28:41We've made sure there's an eating area.
0:28:41 > 0:28:43We've made sure there's a separate kitchen
0:28:43 > 0:28:46rather than a kitchen in the living room.
0:28:46 > 0:28:48I think in fairness, Diana's playing it down a little bit.
0:28:48 > 0:28:52She is pretty good at what she does. So, don't talk yourself down.
0:28:53 > 0:28:54Well said, Raj.
0:28:54 > 0:28:57I think that Diana's career break from diplomacy
0:28:57 > 0:29:00has revealed a very creative design guru.
0:29:01 > 0:29:05So, how did they adapt to their prospective new roles?
0:29:05 > 0:29:10This was just basically another step to use the experiences
0:29:10 > 0:29:13that we've both got to look after budgets
0:29:13 > 0:29:15and look after big operations.
0:29:15 > 0:29:19And this becomes a little bit more serious because it's your own money.
0:29:19 > 0:29:21But I think to make it a realistic budget,
0:29:21 > 0:29:23so that we've got a template for our next one,
0:29:23 > 0:29:24um...
0:29:24 > 0:29:28we've absolutely included every single piece of expenditure
0:29:28 > 0:29:32and we came in at 16,000. So, not too worried about that.
0:29:33 > 0:29:36Raj has only gone one grand over his £15,000 budget,
0:29:36 > 0:29:39so there can't be anything to worry about, can there?
0:29:39 > 0:29:42To find out, we called in two local estate agents
0:29:42 > 0:29:46to assess Diana's ideas and Raj's implementation
0:29:46 > 0:29:50and to get some values to their finished debut project.
0:29:50 > 0:29:55Is the agent who saw it before impressed by the changes?
0:29:55 > 0:29:59Huge changes to the property, it's an incredible difference.
0:29:59 > 0:30:01Very well executed.
0:30:01 > 0:30:03Perfectly done.
0:30:03 > 0:30:05And to a very, very high standard.
0:30:05 > 0:30:07They've maximised it as well as they can.
0:30:07 > 0:30:09I love the idea that it's got a separate kitchen.
0:30:09 > 0:30:12And the fact that everything is off the sitting room
0:30:12 > 0:30:15I think is really quite handy and people will like that.
0:30:15 > 0:30:21The flat was bought for £198,000 and they spent 16,000 renovating it.
0:30:22 > 0:30:24That's £214,000.
0:30:24 > 0:30:27However, the couple have totalled up their spend
0:30:27 > 0:30:30and taking account of all fees and charges
0:30:30 > 0:30:33at both ends of the purchase and sale,
0:30:33 > 0:30:37their break even figure is 236, not including tax.
0:30:37 > 0:30:40So, will they achieve that or more on their first-time project?
0:30:42 > 0:30:43Here's hoping!
0:30:45 > 0:30:48I would anticipate the resale value for this
0:30:48 > 0:30:50to be in the region of about £290,000.
0:30:50 > 0:30:58The resale value on this property, I would, as an estimate, of £295,000.
0:30:58 > 0:31:03That's a pre-tax profit of £59,000 on that top valuation.
0:31:03 > 0:31:05But these two are already on it.
0:31:05 > 0:31:07The property's currently on the market
0:31:07 > 0:31:10and we've got our first two viewings this afternoon.
0:31:10 > 0:31:12Blimey! How much for?
0:31:12 > 0:31:15It's on the market for 280,000.
0:31:15 > 0:31:18So, with that potential profit, I'm guessing the rental yield
0:31:18 > 0:31:21of about 5.5% would be of little interest
0:31:21 > 0:31:25and they're already progressing on their next project in Wimbledon.
0:31:25 > 0:31:29So, what's been the recipe for a first successful project?
0:31:29 > 0:31:33A bit of luck. And also making sure you've got enough pencils
0:31:33 > 0:31:34and tape measures, really.
0:31:34 > 0:31:37Because I think you can never have too many of those.
0:31:46 > 0:31:49Off to the West Midlands now and Smethwick.
0:31:49 > 0:31:53There are good links with the M5 and the M6 and Rolfe Street station is
0:31:53 > 0:31:57about 15 minutes away, which can whizz you to Walsall, Wolverhampton,
0:31:57 > 0:31:59or even Birmingham.
0:32:01 > 0:32:04The house I'm here to see is a little bit different.
0:32:04 > 0:32:06But more of that later.
0:32:06 > 0:32:08Let's get the usual stuff out the way.
0:32:08 > 0:32:13It's a two-bed end-terrace house with a guide price of
0:32:13 > 0:32:14£50,000-£60,000.
0:32:14 > 0:32:16Nothing unusual there.
0:32:19 > 0:32:20So, here's the strange bit.
0:32:20 > 0:32:24You have to go all the way down this passageway to get to the house,
0:32:24 > 0:32:26which isn't ideal.
0:32:26 > 0:32:29Let's hope the house is worth the journey.
0:32:30 > 0:32:33It may not be a journey exactly, I exaggerate,
0:32:33 > 0:32:35but it's a long way to carry your shopping.
0:32:39 > 0:32:45Right, so we're in straight into the front reception room.
0:32:45 > 0:32:48Nice high ceiling, by the way, with a bit of detail.
0:32:48 > 0:32:50You've got an old-fashioned gas fire there,
0:32:50 > 0:32:52which looks pretty wrecked to me,
0:32:52 > 0:32:56and you've got a radiator on this wall as well.
0:32:56 > 0:32:58It needs tidying up.
0:32:58 > 0:33:00It needs decorating.
0:33:00 > 0:33:01Let's explore a bit further.
0:33:04 > 0:33:07OK, you've got a bit of storage under the stairs right there,
0:33:07 > 0:33:10and then you come up a level into the kitchen, which,
0:33:11 > 0:33:13right, is not in great condition.
0:33:13 > 0:33:16We need a new floor, we need a new boiler,
0:33:16 > 0:33:22we need to get that crack sorted and this damp.
0:33:23 > 0:33:25So you're more or less starting from scratch, here.
0:33:25 > 0:33:30If you were to take everything out of here, you could create a nice
0:33:30 > 0:33:34kitchen/diner. You could have an L-shaped kitchen,
0:33:34 > 0:33:37so you'd keep what you've got, across the back wall,
0:33:37 > 0:33:41and you could come down here and create a bit of a breakfast bar so
0:33:41 > 0:33:45you could have some stools on this side, sit down, have your breakfast,
0:33:45 > 0:33:46two or three of you.
0:33:46 > 0:33:49You've got somewhere to pass and go upstairs and
0:33:49 > 0:33:52somewhere to pass to go outside.
0:33:52 > 0:33:54Just a couple of options.
0:33:54 > 0:33:56But any changes must be an improvement.
0:33:56 > 0:33:59# I've really got to use
0:33:59 > 0:34:01# My imagination
0:34:01 > 0:34:04# Got to use my imagination
0:34:04 > 0:34:08- # To think of good reasons - Got to use my imagination
0:34:08 > 0:34:10# To keep on keepin' on... #
0:34:12 > 0:34:14This is the front bedroom, the biggest of the two,
0:34:14 > 0:34:18facing the front of the house, and it's not a bad size at all.
0:34:18 > 0:34:22You come down a step so the ceilings feel quite high.
0:34:22 > 0:34:26On the other side, we've got the second bedroom
0:34:26 > 0:34:29and the family bathroom just here.
0:34:29 > 0:34:32No shower in here but you've got a nice-sized bath.
0:34:32 > 0:34:33It's a nice-size room, actually.
0:34:33 > 0:34:35It does need to be decorated,
0:34:35 > 0:34:37probably put a new suite in there as well.
0:34:37 > 0:34:41The second bedroom is a lot smaller from bedroom one,
0:34:41 > 0:34:46which is at the front of the house, but it wasn't always this size.
0:34:46 > 0:34:52Because that is a false wall, so this whole area would've been a bedroom.
0:34:52 > 0:34:56What they've done is they've brought the bathroom inside and
0:34:56 > 0:34:59upstairs, which I think is the right thing to do,
0:34:59 > 0:35:02because who wants to go outside to go to the toilet?
0:35:02 > 0:35:03Not me.
0:35:05 > 0:35:09Speaking of outside, a look at the back of the property reveals that
0:35:09 > 0:35:12maintenance hasn't been at the top of the priority list here.
0:35:12 > 0:35:16Which can sometimes spell trouble, because
0:35:16 > 0:35:19we have got some severe cracks.
0:35:19 > 0:35:22Now, it could just be the render,
0:35:22 > 0:35:26or there could be a subsidence issue.
0:35:26 > 0:35:29Or it could even be a collapsed drain.
0:35:29 > 0:35:32Whatever it is, there's a problem here.
0:35:32 > 0:35:35I'd get the professionals in and get it checked out ASAP.
0:35:36 > 0:35:41Especially as the cracks above the door lintel match the ones on the inside.
0:35:44 > 0:35:47Still, let's look on the bright side and get the opinions of a local
0:35:47 > 0:35:52estate agent and some all-important valuations of this lot guided at
0:35:52 > 0:35:54£55-60,000.
0:36:00 > 0:36:04The main drawback of the property is that it's at the end of
0:36:04 > 0:36:09a walkway, off the road, which doesn't allow for any parking.
0:36:10 > 0:36:17Parking here is a bit of a premium as the main high street
0:36:17 > 0:36:22with shops is at the end of the road and obviously people park here
0:36:22 > 0:36:24to go shopping, etc.
0:36:24 > 0:36:26Convenient for shops, though.
0:36:26 > 0:36:28What sort of rental figure would the agent recommend?
0:36:29 > 0:36:32If the property is all done out, all tickety-boo,
0:36:32 > 0:36:36nothing wrong with it, then I would envisage a rental in the region of
0:36:36 > 0:36:40£500-525 per calendar month.
0:36:40 > 0:36:44And bearing in mind that guide price of £55,000-60,000,
0:36:44 > 0:36:46what could it sell for?
0:36:46 > 0:36:50I would imagine it would achieve in the region of £85,000.
0:36:50 > 0:36:55It might make £90,000, depending upon what they've done to it.
0:36:55 > 0:36:59So this isn't your standard terrace as it's off the main road.
0:36:59 > 0:37:01Has got a couple of issues, though -
0:37:01 > 0:37:04get that damp checked out and these cracks out here.
0:37:04 > 0:37:07Let's find out who wanted to crack on with it,
0:37:07 > 0:37:09when it went under the hammer.
0:37:09 > 0:37:13The property featured in one of the last lots of the day.
0:37:13 > 0:37:17So who will bid me for this nice two-bedroomed end terrace property
0:37:17 > 0:37:21in a good location with vacant possession?
0:37:21 > 0:37:22Start me, if you will.
0:37:23 > 0:37:24Shall we try 50?
0:37:25 > 0:37:2750. Thank you, gentlemen.
0:37:27 > 0:37:30At £50,000, I'm bid.
0:37:30 > 0:37:32Do I have 60?
0:37:32 > 0:37:3455?
0:37:34 > 0:37:3655 - and thank you.
0:37:36 > 0:37:37At 55, I'm bid?
0:37:39 > 0:37:4356. 56. Same chance for you sir, is it 57?
0:37:43 > 0:37:4857. I've got someone before you who's at 57. Do you want 58?
0:37:48 > 0:37:5258, 59, 60, 61.
0:37:54 > 0:37:5662. 62 and a half.
0:37:56 > 0:38:0063. 63 and a half.
0:38:00 > 0:38:01You sure? No?
0:38:01 > 0:38:04£63,000 on sale.
0:38:04 > 0:38:0663 and a half.
0:38:06 > 0:38:0764.
0:38:08 > 0:38:1164 and a half. 65.
0:38:11 > 0:38:1265 and a half.
0:38:12 > 0:38:18No. I'm on sale to you at £65,000. Are we all done?
0:38:18 > 0:38:22One, two, three, congratulations, worth the wait, sir.
0:38:22 > 0:38:25That is now yours and the best of luck with it. Well done.
0:38:25 > 0:38:27The top bid came from Michael.
0:38:27 > 0:38:31He's an occupational therapist living and working in London.
0:38:31 > 0:38:34He made the trip to the West Midlands due to the property prices
0:38:34 > 0:38:35being cheaper.
0:38:35 > 0:38:40He has little renovation experience having only mucked in with kitchen
0:38:40 > 0:38:42and window fitters at his London home.
0:38:43 > 0:38:47We met him at his 65 grand purchase to find out his plans.
0:38:48 > 0:38:50- Nice to meet you, sir.- Nice to meet you.
0:38:50 > 0:38:52And well done, congratulations.
0:38:52 > 0:38:55- Cheers.- That's not a European accent, where are you from?
0:38:55 > 0:38:59- No, from Australia.- OK. Whereabouts?
0:38:59 > 0:39:02Perth, south-west Australia, so, on the coast.
0:39:02 > 0:39:05So why, what brings you to our shores?
0:39:07 > 0:39:09- Just to travel, basically.- OK.
0:39:10 > 0:39:16And also working here and there's a lot of opportunities in property,
0:39:16 > 0:39:20- I think.- Tell us about this place and what made you buy this place?
0:39:20 > 0:39:25Terraced house, freehold, it's close to town, or relatively.
0:39:25 > 0:39:29So, I think it's got a lot going for it.
0:39:30 > 0:39:32Did you see it beforehand?
0:39:33 > 0:39:34No.
0:39:34 > 0:39:35OK, OK.
0:39:36 > 0:39:38I'll let that one go for now.
0:39:38 > 0:39:39Did you read the legal pack?
0:39:39 > 0:39:42- I read the legal pack.- That's OK, but you didn't view the property?
0:39:42 > 0:39:44- I didn't view it, no.- OK.
0:39:44 > 0:39:46When did you get in the property for the first time?
0:39:46 > 0:39:50- Today.- Really?- Yeah.
0:39:50 > 0:39:53Got the train in this morning. I just got back from Morocco.
0:39:54 > 0:39:57Globetrotter Michael was surfing instead of viewing.
0:39:57 > 0:39:59That's an Aussie for you.
0:39:59 > 0:40:02Now he's seen the property, what does he think?
0:40:03 > 0:40:10I like it, but as soon as I walked in, I saw the kitchen and, yeah,
0:40:10 > 0:40:13I was thinking it may have been a bit better
0:40:13 > 0:40:17just from what I've read, but it's only cosmetic, I think.
0:40:17 > 0:40:20He has, I think, been lucky here.
0:40:20 > 0:40:23It does look cosmetic but you know what I'm going to say,
0:40:23 > 0:40:25like I always do, view the property.
0:40:25 > 0:40:28Pretty please, view the property.
0:40:28 > 0:40:30How many times do I have to tell you?
0:40:30 > 0:40:31TAKES A BREATH
0:40:31 > 0:40:32And breathe, Dion.
0:40:33 > 0:40:35Now that Michael has got the property,
0:40:35 > 0:40:37what is he going to do with it?
0:40:37 > 0:40:41Just renovate it and look at renting it out, I think,
0:40:41 > 0:40:43and see how that goes.
0:40:43 > 0:40:45What kind of renovation are we looking here?
0:40:45 > 0:40:47Top, middle or bottom?
0:40:47 > 0:40:50- Middle.- Middle?- I think...
0:40:50 > 0:40:54I think to rent out, make it look good and then
0:40:54 > 0:40:56if I want to sell, I can.
0:40:56 > 0:40:58It leaves your options open, doesn't it?
0:40:58 > 0:41:01Yeah, exactly, and I want to end up getting another one as well.
0:41:01 > 0:41:05Michael aims to get tenants in here as quickly as possible.
0:41:05 > 0:41:08He set himself a timescale of four to six weeks,
0:41:08 > 0:41:11so what's he going to do during that time?
0:41:11 > 0:41:16I'll probably fix up some of the damp in the kitchen and also
0:41:16 > 0:41:20just take off the wallpaper and paint and just make it look good.
0:41:20 > 0:41:24- Make it good?- Yeah, exactly.- A couple of things I've seen.
0:41:24 > 0:41:27The main one, really. I've seen a few cracks on the outside.
0:41:27 > 0:41:29I've been out the back, I've seen a few cracks as well.
0:41:29 > 0:41:30Does it worry you?
0:41:30 > 0:41:33Yeah, hopefully it's nothing serious, but I don't think it is.
0:41:33 > 0:41:36Fingers crossed for you, it may just be the render.
0:41:36 > 0:41:39I think the other properties are quite similar next door.
0:41:39 > 0:41:41A nice little project to get on with, isn't it?
0:41:41 > 0:41:43Yeah, definitely, it's different to Australia as well,
0:41:43 > 0:41:45like a different layout of the property,
0:41:45 > 0:41:49the heating, obviously, we don't need heating, we've got air-con,
0:41:49 > 0:41:50so, yeah, it's very different.
0:41:50 > 0:41:53That's just showing off now, isn't it?
0:41:53 > 0:41:56We don't need heating, it's hot all the time.
0:41:56 > 0:41:57That is fantastic.
0:41:57 > 0:41:58# He said
0:41:58 > 0:42:02# I come from a land down under
0:42:02 > 0:42:06# Where beer does flow and men chunder... #
0:42:08 > 0:42:10I am a bit jealous. No heating?
0:42:11 > 0:42:14On second thoughts, I'm not jealous
0:42:14 > 0:42:17because he's got to do a lot of graft here.
0:42:17 > 0:42:20And with the five grand budget, he'll be doing a lot of the work
0:42:20 > 0:42:22himself, but will he be getting any help?
0:42:24 > 0:42:26- Footy mates.- Footy mates!
0:42:26 > 0:42:29Please leave the footy mates on the footy pitch.
0:42:29 > 0:42:30That's it.
0:42:31 > 0:42:36- Or in the pub.- You can come back and do the work.- Yeah.
0:42:36 > 0:42:39But I think maybe the locals around here, probably.
0:42:39 > 0:42:41Probably get a few in and help us out.
0:42:41 > 0:42:45Five grand on your budget and how long is it going to take to turn it around?
0:42:45 > 0:42:46My time is four to six weeks.
0:42:46 > 0:42:52- OK.- So I'm basically... The plan is working in London, obviously,
0:42:52 > 0:42:55come over in the weekends, smash it out and see how it goes.
0:42:55 > 0:42:57Good on you. Listen, I wish you all the best.
0:42:57 > 0:43:00- Hope it all works out for you. - Cheers.- Good luck to you.
0:43:00 > 0:43:02- Take it easy.- Good luck, Michael. - Cheers.
0:43:02 > 0:43:04So Michael is living dangerously.
0:43:04 > 0:43:08He only got to see the inside of this place two hours ago.
0:43:08 > 0:43:12He's after a quick refurb, get the tenants in and get this place
0:43:12 > 0:43:14making him some money as soon as possible.
0:43:14 > 0:43:16How can I put this?
0:43:16 > 0:43:19Will he be a winner or will he be a runner-up?
0:43:19 > 0:43:22You can find out how he gets on later in the programme.
0:43:26 > 0:43:28So earlier, we saw the result of one property,
0:43:28 > 0:43:29but what about the other two?
0:43:29 > 0:43:33Have things gone smoothly or have there been some bumps on the road?
0:43:33 > 0:43:34Let's go back and find out.
0:43:37 > 0:43:40Time to go back to Shropshire now and the Telford suburb
0:43:40 > 0:43:44of St Georges were I saw a three-storey property with an
0:43:44 > 0:43:49incredibly low guide price of £27,500.
0:43:49 > 0:43:52Actually, the guide price wasn't so incredible once you saw the property.
0:43:55 > 0:43:56Oh, dear!
0:43:57 > 0:44:03Yeah. This is definitely looking like hard hat territory.
0:44:03 > 0:44:08# Another hard hat day is coming on strong... #
0:44:09 > 0:44:13Hard hat firmly in place, I had a careful look around
0:44:13 > 0:44:17a property that made Roman ruins look like a simple fixer-upper.
0:44:19 > 0:44:21You can see all the stonework is revealed.
0:44:23 > 0:44:25No damp proof course, obviously.
0:44:25 > 0:44:28Nothing, don't take anything for granted here,
0:44:28 > 0:44:31this is a massive, massive, massive project.
0:44:31 > 0:44:34Erm... Can I see any positives?
0:44:34 > 0:44:36It's going to all come down to the price.
0:44:36 > 0:44:39If you get this at a good price, perhaps it's worth doing.
0:44:42 > 0:44:46But the budget for doing it, it's going to be quite high.
0:44:46 > 0:44:50# What in the world happened to you? #
0:44:51 > 0:44:54This was no job for the faint-hearted.
0:44:54 > 0:44:57It would require some real vision, not least at the back,
0:44:57 > 0:45:00where it was more jungle than garden.
0:45:02 > 0:45:06Step up local property developer and qualified engineer Dave who, in
0:45:06 > 0:45:10partnership with his son, Tim, bought this for £30,000.
0:45:10 > 0:45:14This was their fourth project together and he certainly wasn't
0:45:14 > 0:45:16shying away from the job at hand.
0:45:16 > 0:45:19It's going to have to have a new roof, obviously new floors
0:45:19 > 0:45:23throughout, everything rewired, re-plumbed and almost certainly
0:45:23 > 0:45:24we're going to turn it into one property.
0:45:24 > 0:45:27It's too tight to turn into two.
0:45:27 > 0:45:32Plans for a three-bed house rested on lots of ifs, buts and maybes.
0:45:32 > 0:45:36Maybe the planning department would permit this old hairdresser's to be
0:45:36 > 0:45:38converted into a house.
0:45:38 > 0:45:41But car parking was an issue.
0:45:41 > 0:45:44Maybe he could resolve that by getting access off the road,
0:45:44 > 0:45:46if he could get planning permission.
0:45:46 > 0:45:50But the big bulge in the back wall would mean a rebuild - if access was
0:45:50 > 0:45:52possible in this mid-terrace.
0:45:53 > 0:45:55All in all, a real toughie.
0:45:55 > 0:45:57Well, six months later, we've returned.
0:45:57 > 0:46:02And, oh, well, I'm sure inside is lovely...
0:46:02 > 0:46:03Perhaps.
0:46:07 > 0:46:09SCREAM
0:46:09 > 0:46:12Oh, dear. I'm afraid it's still a house of horrors.
0:46:12 > 0:46:15- David?- Since you last came,
0:46:15 > 0:46:18we looked at the different options for the property,
0:46:18 > 0:46:20talked to the local planners,
0:46:20 > 0:46:23we put an application in with a vehicular access on it.
0:46:25 > 0:46:28Unfortunately, after they considered it different ways,
0:46:28 > 0:46:32they decided that they weren't happy about that, so we had to withdraw
0:46:32 > 0:46:34that application and resubmit an application along
0:46:34 > 0:46:38our original ideas which was to restore it as it is and put an
0:46:38 > 0:46:39extension on the back.
0:46:39 > 0:46:42It probably took me four or five weeks to get the drawings sorted
0:46:42 > 0:46:45out, get my head around what we wanted to do.
0:46:45 > 0:46:49We then submitted the application, which took six,
0:46:49 > 0:46:52probably seven weeks before we got a response back.
0:46:52 > 0:46:55That said they weren't happy, so we had to withdraw it
0:46:55 > 0:46:58and resubmit it. So, yeah, all along,
0:46:58 > 0:47:00we've probably lost four or five months.
0:47:00 > 0:47:04But it's given us time to think it through properly.
0:47:04 > 0:47:07Well, it's nice to see that David is still smiling.
0:47:07 > 0:47:10He used the time waiting for the planning office wisely.
0:47:10 > 0:47:12He's overseen the clearing of the back garden,
0:47:12 > 0:47:15which looks even bigger than I first thought.
0:47:15 > 0:47:20That is a nice little bonus and he's taken advantage with the substantial
0:47:20 > 0:47:22extension planned for the rear.
0:47:22 > 0:47:25But let's hear David explain exactly what his plan is for the property.
0:47:30 > 0:47:34On the lower ground floor, in the extension, we've got a kitchen and a
0:47:34 > 0:47:38living area which runs through into the back area at the bottom.
0:47:38 > 0:47:42The staircase up and the utility behind the kitchen...
0:47:44 > 0:47:47..with a WC in there.
0:47:47 > 0:47:50On the ground floor, we've got a bedroom with an en suite,
0:47:50 > 0:47:54a hallway with the two staircases, and a living room-study.
0:47:55 > 0:47:59And on the top floor, two bedrooms, a bathroom and a landing.
0:48:02 > 0:48:06So, across the three floors, this will be a three-bedroomed house.
0:48:06 > 0:48:10There will be two living areas and WCs on each floor
0:48:10 > 0:48:12along with a bathroom on the top floor.
0:48:12 > 0:48:17Sounds like a real cracker to me, but there is a long way to go yet.
0:48:17 > 0:48:20Once we purchased the property, we got a structural engineer involved
0:48:20 > 0:48:23and he's come out and had a look at it and advised us that the roof
0:48:23 > 0:48:27needs to come off because the two big purlins are cracked
0:48:27 > 0:48:29and not in good condition.
0:48:29 > 0:48:31And this rear wall has got a big bulge in it,
0:48:31 > 0:48:33so that's got to be taken down to ground level.
0:48:34 > 0:48:36So just added a little bit of work,
0:48:36 > 0:48:39but we've got to knock a hole in the back of this wall anyway
0:48:39 > 0:48:40to put through to the extension.
0:48:42 > 0:48:47And the gable end on that right-hand side needs rebuilding at the top level.
0:48:47 > 0:48:50So... Just probably put £5,000 on the budget.
0:48:51 > 0:48:54Well, the structural reports and the clearing of the garden done,
0:48:54 > 0:49:00David has spent £2,000 and has increased his initial budget to
0:49:00 > 0:49:0570-£75,000, with a timescale of five months to turn this into a three-bed
0:49:05 > 0:49:07family home ready for the sales market.
0:49:07 > 0:49:11David is also working on site so he is, quite rightly,
0:49:11 > 0:49:12wearing his hard hat.
0:49:15 > 0:49:19We made sure that we chatted to two local estate agents away from any
0:49:19 > 0:49:22potential risks in a non-hard hat area.
0:49:22 > 0:49:27So let's see what they thought of the site and David's plans so far.
0:49:27 > 0:49:29I've had a good look at David's plans.
0:49:29 > 0:49:32He's going to offer quite a nice size property with the extension
0:49:32 > 0:49:33he's going to put on.
0:49:33 > 0:49:36A little bit of extra space here, there and everywhere.
0:49:36 > 0:49:38So, yeah, a nice design.
0:49:38 > 0:49:41I'm sure that it will suit some family's needs.
0:49:41 > 0:49:43It's a big project.
0:49:43 > 0:49:46I can see it's got lots of scope for potential, but it's a big...
0:49:46 > 0:49:48it's a big job.
0:49:48 > 0:49:51It certainly is. But David is raring to go.
0:49:51 > 0:49:54So, with both agents having studied his plans extensively,
0:49:54 > 0:49:57what kind of value would they place on the completed property?
0:50:00 > 0:50:02It's difficult to give a resale value for this property,
0:50:02 > 0:50:05having seen it in such shell condition.
0:50:05 > 0:50:08It would be my view that for a property in the area like this,
0:50:08 > 0:50:11you'd be looking at perhaps marketing it somewhere
0:50:11 > 0:50:13in the region of 125,000.
0:50:13 > 0:50:15Once the property is completed,
0:50:15 > 0:50:20I would expect the resale value to be between 135 and 145,000.
0:50:21 > 0:50:23They're reasonable. They are whereabouts we thought.
0:50:23 > 0:50:26We'd like the resale value at the top end but, you know,
0:50:26 > 0:50:27we'll go with that.
0:50:27 > 0:50:31Assuming they can do the work for that projected 75,000,
0:50:31 > 0:50:34that would bring their spend to 105,000.
0:50:34 > 0:50:40So that top resale figure of 145,000 would mean a profit of around £40,000.
0:50:40 > 0:50:42And given the hard work involved,
0:50:42 > 0:50:45hopefully he can even get a bit more than that.
0:50:45 > 0:50:51David's tenacity, calm determination and positivity make me want to doff
0:50:51 > 0:50:53my hard hat to him. Good on you, David.
0:50:53 > 0:50:55Sense of relief that we've got where we are and we've
0:50:55 > 0:50:59got the permissions, so now we can do what we want to do with it now.
0:50:59 > 0:51:02There's always the unknown to get from no planning permission to a
0:51:02 > 0:51:03permission and move on.
0:51:12 > 0:51:15Time to take the long and winding road back to Smethwick in the
0:51:15 > 0:51:20West Midlands, where I visited this two bed mid-terrace
0:51:20 > 0:51:23guided at 55-60 grand that had an unusual entrance.
0:51:25 > 0:51:27So, here's the strange bit.
0:51:27 > 0:51:31You have to go all the way down this passageway to get to the house,
0:51:31 > 0:51:33which isn't ideal.
0:51:33 > 0:51:36Let's hope the house is worth the journey.
0:51:38 > 0:51:41OK, it wasn't that long but you would have to walk,
0:51:41 > 0:51:43as there was no access for a car.
0:51:44 > 0:51:47The living room had some things going for it.
0:51:47 > 0:51:50High ceilings and central heating are always welcome.
0:51:50 > 0:51:54As was the upstairs bathroom, which had been brought up from outside.
0:51:55 > 0:51:58Despite some space being pinched from the top toilet,
0:51:58 > 0:52:01there were still two good-sized bedrooms.
0:52:01 > 0:52:03So far, so good.
0:52:03 > 0:52:07But the kitchen layout and the possibilities were where my
0:52:07 > 0:52:09imagination went into overdrive.
0:52:09 > 0:52:14You could have an L-shaped kitchen, so you'd keep what you've got,
0:52:14 > 0:52:18across the back wall and you could come down here and create a bit of a
0:52:18 > 0:52:22breakfast bar, so you could have some stools on this side.
0:52:22 > 0:52:25Sit down, have your breakfast, two or three of you.
0:52:25 > 0:52:27You've got somewhere to pass and go upstairs.
0:52:27 > 0:52:30And you've got somewhere to pass to go outside.
0:52:30 > 0:52:31Five and a half? No.
0:52:31 > 0:52:34Michael, who hails from Australia,
0:52:34 > 0:52:37was untroubled by the kitchen layout,
0:52:37 > 0:52:39before parting with 65 grand at auction.
0:52:39 > 0:52:44But this wasn't because of the famous laid-back, no worries Aussie
0:52:44 > 0:52:47attitude, it was mainly for one other reason.
0:52:47 > 0:52:49Did you see it beforehand or...?
0:52:49 > 0:52:51No.
0:52:51 > 0:52:54- OK, OK.- Yeah. - OK, I'll let that one go for now.
0:52:54 > 0:52:57- Did you read the legal pack?- I read the legal pack.- OK, that's OK.
0:52:57 > 0:52:59But you didn't view the property.
0:52:59 > 0:53:01- I didn't view it.- OK.- No.
0:53:01 > 0:53:05- When did you actually get in the property for the first time?- Today.
0:53:05 > 0:53:06- Really?- Mm.
0:53:06 > 0:53:11It didn't seem to faze him, as he planned to get it ready for the
0:53:11 > 0:53:14rental market in a super-speedy four to six weeks.
0:53:14 > 0:53:17He was going to keep an eye on that five grand budget by doing a
0:53:17 > 0:53:19lot of the work himself,
0:53:19 > 0:53:22with a little help from his Aussie rules football pals.
0:53:23 > 0:53:27So, when we returned 16 weeks later, had he kept his eye on the ball?
0:53:32 > 0:53:36The kitchen is now bright and airy with all the mod cons.
0:53:36 > 0:53:39The tatty old units have been replaced with modern cabinets.
0:53:41 > 0:53:44The tiled floor is looking so much better and everything has been
0:53:44 > 0:53:46freshened up with a coat of paint.
0:53:51 > 0:53:54The lounge has had the same treatment.
0:53:54 > 0:53:56The old gas fire has been removed,
0:53:56 > 0:53:59making the whole space more open and contemporary.
0:54:01 > 0:54:04Moving upstairs, the bathroom has been updated.
0:54:10 > 0:54:14The floor and the walls have been tiled and the bathroom cabinet
0:54:14 > 0:54:16creates some handy storage space.
0:54:18 > 0:54:22The master bedroom has been replastered and fresh magnolia
0:54:22 > 0:54:24walls make the room a lot brighter.
0:54:27 > 0:54:31A disused boiler has been removed from the smaller bedroom by a gas
0:54:31 > 0:54:32engineer but apart from that,
0:54:32 > 0:54:35Michael seems to have done most of the work himself.
0:54:37 > 0:54:41Basically, I have to commute up each weekend, so coming down Friday,
0:54:41 > 0:54:45Friday night and then working through until Sunday night.
0:54:45 > 0:54:49So yeah, usually, 12-plus hours a day, I guess.
0:54:49 > 0:54:52Just ploughing through it, really.
0:54:52 > 0:54:56A gas engineer also replaced an old boiler in the kitchen and Michael
0:54:56 > 0:55:00got a tradesman in to fix new fence panels in the garden.
0:55:02 > 0:55:06There was some help from colleagues and not forgetting the Aussie rules
0:55:06 > 0:55:07football pals.
0:55:08 > 0:55:11When you get some mates over,
0:55:11 > 0:55:14it's harder to actually get the work done.
0:55:14 > 0:55:18So yeah, we went out for dinner and then had a couple of beers
0:55:18 > 0:55:20and end up being a bit late on.
0:55:20 > 0:55:23Not much work got done the next day, I guess.
0:55:23 > 0:55:28But, yeah, the next weekend, pretty much knuckled down.
0:55:28 > 0:55:32With the pub getting in the way and working Monday to Friday,
0:55:32 > 0:55:37it's no wonder he didn't hit his four to six week timescale.
0:55:37 > 0:55:40It took about 16 weeks or so.
0:55:40 > 0:55:44But I guess if you condense it and put it in that I was working every day,
0:55:44 > 0:55:46it's probably around four to six weeks.
0:55:48 > 0:55:51I like that reasoning and I like the fact that by doing most of the work
0:55:51 > 0:55:56himself, Michael was able to keep more or less within that five grand
0:55:56 > 0:55:58budget, spending a total of £5,500.
0:55:58 > 0:56:01So, he's done a good job, which reminds me,
0:56:01 > 0:56:03what happened to those cracks in the rear of the property?
0:56:07 > 0:56:10The interior, basically patched that up,
0:56:10 > 0:56:13just with some filler and then painted.
0:56:13 > 0:56:17Also took out a bit of the concrete on the back wall, so we carted that
0:56:17 > 0:56:21all out and now basically we just need to replaster that.
0:56:21 > 0:56:25But because of the weather, the typical English weather, I guess,
0:56:25 > 0:56:27yeah, we can't.
0:56:27 > 0:56:31When the weather improves, Michael will get a professional opinion,
0:56:31 > 0:56:32then start the repairs.
0:56:34 > 0:56:35But in the meantime,
0:56:35 > 0:56:38can he make hay while the sun shines
0:56:38 > 0:56:41and make a profit on his £70,500 investment?
0:56:41 > 0:56:45We asked along two local estate agents to tell us what they
0:56:45 > 0:56:48thought of Michael's handiwork.
0:56:48 > 0:56:50There is demand for a property like this in the area
0:56:50 > 0:56:51due to the local development.
0:56:51 > 0:56:53There's a new hospital being built down the road and
0:56:53 > 0:56:56there's also a lot of new housing developments being built also.
0:56:56 > 0:56:59There is one major negative to this property and that is the fact that
0:56:59 > 0:57:01you can't get a car anywhere near it.
0:57:01 > 0:57:03It's on-road parking on what is a very busy road,
0:57:03 > 0:57:08close to a main shopping area and parking is really an issue.
0:57:08 > 0:57:11It's a pity you couldn't get a car to it and I think that will put an
0:57:11 > 0:57:13awful lot of buyers off it.
0:57:13 > 0:57:14That could well be.
0:57:14 > 0:57:21However, the agent still valued the house at between 85 and 100 grand.
0:57:21 > 0:57:25That's a possible profit of 29,500, minus taxes and fees,
0:57:25 > 0:57:27which is pretty good.
0:57:27 > 0:57:30But it's the rental market that Michael is interested in.
0:57:30 > 0:57:34The rental value on this property would be in the region of £550 per
0:57:34 > 0:57:37- calendar month.- The rental per calendar month for a property like
0:57:37 > 0:57:41this would be between £600 and £650 per calendar month.
0:57:42 > 0:57:45Yeah, I'd say that's probably around the ballpark, to be honest.
0:57:45 > 0:57:49600, 650. Yeah. Pretty happy with that.
0:57:49 > 0:57:53That could mean a yield of 11.6%.
0:57:53 > 0:57:56A result like that surely means he's got a future in property,
0:57:56 > 0:57:58so what's next for Michael?
0:57:59 > 0:58:01Take a break, I think, a little bit.
0:58:01 > 0:58:03Reassess, see what I want to do.
0:58:03 > 0:58:06And then, yeah, potentially get my eyes on something else.
0:58:06 > 0:58:10But, yeah, for now, book a trip to Australia, I think.
0:58:14 > 0:58:17So, that's all of today's action wrapped up but don't worry,
0:58:17 > 0:58:19there's plenty more where that came from.
0:58:19 > 0:58:22Yes, we'll be back soon with more bungalows and basement flats.
0:58:22 > 0:58:24Join us, then, for more Homes Under The Hammer.
0:58:24 > 0:58:25- Goodbye.- Goodbye.- Bye.