0:00:02 > 0:00:05Welcome to the show. In the world of property, timing is critical.
0:00:05 > 0:00:08The buyer, the seller, even the market,
0:00:08 > 0:00:10all have different opinions on when the right time to buy is.
0:00:10 > 0:00:13Yes, but if the clock is ticking and time's not on your side,
0:00:13 > 0:00:15why not head down to your property auction?
0:00:15 > 0:00:19Yes, sometimes just 28 days after that hammer falls,
0:00:19 > 0:00:21you could have the keys to your new property.
0:00:21 > 0:00:23So, do you fancy buying your next home at auction?
0:00:50 > 0:00:54I'm always fascinated to hear the personal stories behind each auction buy.
0:00:54 > 0:00:56Yes, it's always nice to find out why they bought them
0:00:56 > 0:00:58and what they've got planned for those houses.
0:00:58 > 0:01:00Yes, you'll be pleased to know it's time to find out.
0:01:00 > 0:01:03Here are the properties we're featuring on today's show.
0:01:05 > 0:01:09In Staffordshire, I'm hoping this house could have a happy ending.
0:01:09 > 0:01:13I guess it all depends on what buyer chooses this property and what they
0:01:13 > 0:01:14decide to do.
0:01:16 > 0:01:19Whereas in Birkenhead, is this project a developer's dream?
0:01:20 > 0:01:23I can't see anything else that needs to be done...
0:01:23 > 0:01:25Yet.
0:01:25 > 0:01:27And I was really excited by this one,
0:01:27 > 0:01:31but could this Paisley Project turn out to be just a fantasy?
0:01:31 > 0:01:34It looks like a magical castle! What more could you want?!
0:01:36 > 0:01:39All these properties have been sold at auction.
0:01:39 > 0:01:41We'll find out who bought them and what they paid
0:01:41 > 0:01:43when they went under the hammer.
0:01:43 > 0:01:45You bought it, sir, well done.
0:01:48 > 0:01:52Just five miles from Newcastle-under-Lyme is the charming Staffordshire
0:01:52 > 0:01:54village of Madeley.
0:01:55 > 0:02:00The centre of Madeley sits on the banks of an old 18th-century millpond
0:02:00 > 0:02:03and the mill building itself remains today.
0:02:03 > 0:02:05Although since converted into homes,
0:02:05 > 0:02:08it still has a lot of period character.
0:02:08 > 0:02:11But will the charm continue with today's property,
0:02:11 > 0:02:15which sits just a mile from Madeley village centre?
0:02:17 > 0:02:21I'm in Madeley Heath and I'm here to see an end-of-terrace three-bedroom
0:02:21 > 0:02:25property. So far it's a promising start because it's along this street,
0:02:25 > 0:02:30with a really well-maintained row of houses, almost with a cottagey feel.
0:02:30 > 0:02:34Here it is. It had a guide price of £70,000.
0:02:34 > 0:02:37Let's see what it's like inside.
0:02:40 > 0:02:41Straight into a reception room.
0:02:41 > 0:02:47Might not be everyone's cup of tea to come right into it - I don't mind it, myself.
0:02:47 > 0:02:48Double glazing, good news.
0:02:50 > 0:02:54So far, looking around, can't see any signs of central heating.
0:02:54 > 0:02:56Quite small, actually, this room, as a reception room.
0:02:56 > 0:03:01But you have the same again and probably a little bit more in another reception room.
0:03:01 > 0:03:05Could think about taking down this wall to open things up.
0:03:05 > 0:03:09What I do notice is that the flooring's very uneven,
0:03:09 > 0:03:10really bumpy.
0:03:10 > 0:03:13Now it might just be because it's an old property,
0:03:13 > 0:03:18or I happen to know there's a problem with both red and black ash in the area
0:03:18 > 0:03:20from the pottery industry.
0:03:20 > 0:03:24And this can cause all sorts of problems when it's under your floor.
0:03:24 > 0:03:27So you definitely want to get that tested by an expert.
0:03:27 > 0:03:32# And, honey, I couldn't see the trouble underneath... #
0:03:32 > 0:03:35Hard-core and waste materials from industries like mining,
0:03:35 > 0:03:39steel and the potteries were used to strengthen concrete on hundreds of
0:03:39 > 0:03:43thousands of properties post-war, until the early '70s.
0:03:43 > 0:03:48There's red ash slag and grey fly ash and black ash.
0:03:48 > 0:03:52Unfortunately sulphates in the mix combined with dampness can cause the
0:03:52 > 0:03:56concrete to fail, so it can be an expensive business to solve.
0:03:56 > 0:04:00And unfortunately that doesn't look like the only problem you might have
0:04:00 > 0:04:02to sort out.
0:04:02 > 0:04:04Ah, this is really small.
0:04:04 > 0:04:08It's L-shaped so a bit awkward, but it's so pokey,
0:04:08 > 0:04:11people would expect a bigger kitchen.
0:04:11 > 0:04:15Look at this. So, that's narrow, you couldn't even get two people in.
0:04:15 > 0:04:18No chance of having a conversation.
0:04:18 > 0:04:20What are your options?
0:04:20 > 0:04:24The thing that's stopping you just knocking down walls is that you have
0:04:24 > 0:04:26a staircase right here in the middle.
0:04:26 > 0:04:32You could make this your bathroom area and out here some open-plan living with your kitchen.
0:04:32 > 0:04:34That would really open things up.
0:04:34 > 0:04:37But it does require some careful consideration.
0:04:37 > 0:04:41# Am I too small to matter at all
0:04:41 > 0:04:45# Oh, where do I fit in? #
0:04:48 > 0:04:53Upstairs, one, two, three.
0:04:53 > 0:04:55Good news, good-sized bedrooms.
0:04:55 > 0:04:58Really good-sized. Often in terrace properties you find that two are
0:04:58 > 0:05:02decent sized and then one is pokey, more of a boxroom.
0:05:02 > 0:05:04But it feels really well proportioned.
0:05:04 > 0:05:09Not so good, clear signs of damp on the walls, wallpaper falling down,
0:05:09 > 0:05:11damp patches.
0:05:11 > 0:05:15So having three good-sized bedrooms is fantastic news.
0:05:15 > 0:05:18Not so good if you have a family who want to buy - well,
0:05:18 > 0:05:22they might prefer to have a bathroom upstairs which you don't currently have.
0:05:22 > 0:05:26You could make a bathroom, sacrifice one of the bedrooms to have two,
0:05:26 > 0:05:30or maybe you could have the best of both worlds and have a bathroom,
0:05:30 > 0:05:34move your layout a bit, and just make one of the bedrooms smaller.
0:05:34 > 0:05:38I guess it all depends on what buyer chooses this property and what they
0:05:38 > 0:05:41decide to do.
0:05:41 > 0:05:46# I can't make up my mind
0:05:46 > 0:05:49# Someone has to help me I never seem to know what to do
0:05:49 > 0:05:55# I just can't decide for myself... #
0:05:55 > 0:05:58Good thing we asked an agent from the auction house who sold it
0:05:58 > 0:06:03to come along and help us decide what the best layout for this property could be.
0:06:05 > 0:06:09If the current layout was kept as it is, with the three bedrooms upstairs,
0:06:09 > 0:06:12I don't think it would maximise the potential of the property.
0:06:12 > 0:06:15Therefore I would suggest that the bathroom be moved and the kitchen
0:06:15 > 0:06:18opened up and actually make it a two-bedroom,
0:06:18 > 0:06:21for who it is likely to appeal to within this area.
0:06:21 > 0:06:24And if those changes were carried out,
0:06:24 > 0:06:29the agent felt a rental figure of £575 per calendar month would be possible.
0:06:29 > 0:06:37So, could there be money to be made on the sales market for this property, guided at £70,000?
0:06:37 > 0:06:40If the property is refurbished to a good standard,
0:06:40 > 0:06:43making it a two-bedroom property with the bathroom moved upstairs,
0:06:43 > 0:06:49we would look to place the property for sale somewhere in the region of £125,000.
0:06:49 > 0:06:52So potential headaches with this property.
0:06:52 > 0:06:55That floor, damp, and the layout.
0:06:55 > 0:06:59But fundamentally you've got a really charming house with loads of
0:06:59 > 0:07:01potential to work with.
0:07:01 > 0:07:04Let's find out who agreed when it went under the hammer.
0:07:04 > 0:07:07Good location. 65 to start it.
0:07:08 > 0:07:0965 bid. Thank you.
0:07:09 > 0:07:12At 65,000. 67 can I see now?
0:07:12 > 0:07:13At 65,000. 67.
0:07:16 > 0:07:1869? 69.
0:07:18 > 0:07:19We'll go in ones now. Bid's at 69.
0:07:19 > 0:07:2170 can I see?
0:07:21 > 0:07:2670. 71? 71. 72.
0:07:26 > 0:07:3073. 74. 75?
0:07:30 > 0:07:33Half, he's saying. 74,500. 75. And a half?
0:07:35 > 0:07:3875. Seated right at £75,000.
0:07:38 > 0:07:40Another 500 anywhere else?
0:07:40 > 0:07:43If not, I'm selling it at £75,000.
0:07:43 > 0:07:46You bought it, sir, well done.
0:07:46 > 0:07:49The successful bid of £75,000 was made by Ali,
0:07:49 > 0:07:52who was at the auction with his dad, Roger.
0:07:52 > 0:07:55Ali has bought this house to develop and sell.
0:07:55 > 0:08:00Now, is it just me, or are property developers getting younger?!
0:08:00 > 0:08:02- # We are young - Whoa!
0:08:02 > 0:08:07- # We are young - Whoa! #
0:08:07 > 0:08:09Ali, congratulations on the house.
0:08:09 > 0:08:10Is this your first property?
0:08:10 > 0:08:14No, this is actually my fourth investment property.
0:08:14 > 0:08:15Do you mind me asking how old you are?
0:08:15 > 0:08:18- I'm 20.- I thought you looked young.
0:08:18 > 0:08:2020! Four properties?
0:08:20 > 0:08:23That's not bad going. When did you start?
0:08:23 > 0:08:26Probably started around 17, got the bug for it, I guess,
0:08:26 > 0:08:28as they keep saying, the property bug.
0:08:28 > 0:08:30And here I am.
0:08:30 > 0:08:35Well, the immediate question is, how, at 17, do you manage to do that?
0:08:35 > 0:08:38Yeah, well, it's a bit of an interesting story.
0:08:38 > 0:08:41Once I finished my A-levels, instead of going off to university,
0:08:41 > 0:08:46I had to have surgery to resurrect previous
0:08:46 > 0:08:50surgeries that had gone wrong which were all caused from having a bone
0:08:50 > 0:08:52cancer at 12.
0:08:52 > 0:08:56So I'd been on crutches for five years,
0:08:56 > 0:09:00at which point, finished my A-levels, I thought, I'll get it sorted.
0:09:00 > 0:09:03And whilst I was doing that, my parents said, have a go at a house,
0:09:03 > 0:09:08it'll keep you busy, you can do as much or as little as you want.
0:09:08 > 0:09:10Which suited me down to the ground.
0:09:10 > 0:09:11That's an amazing story.
0:09:11 > 0:09:16It's quite inspirational that you don't have to go to university,
0:09:16 > 0:09:18you're clearly doing very well.
0:09:18 > 0:09:21- Did your parents give you a bit of a hand?- Yeah, definitely.
0:09:21 > 0:09:24They've had to have helped me out,
0:09:24 > 0:09:28but I'm hoping to stand on my own feet once I've done a few properties.
0:09:28 > 0:09:32And run it off my own back and hopefully make a career of it.
0:09:32 > 0:09:34And no crutches now?
0:09:34 > 0:09:36No. I must say, it feels good.
0:09:36 > 0:09:39It's been a year, crutch-free.
0:09:39 > 0:09:43And yeah, it feels great, I can get stuck in a bit more now.
0:09:43 > 0:09:46And has it given you extra motivation to make a success?
0:09:46 > 0:09:49Yeah, definitely.
0:09:49 > 0:09:52I feel like I'm quite driven, probably from previous experiences.
0:09:52 > 0:09:57So I'd like to say there's not much that's going to hold me back.
0:09:57 > 0:10:01Ali is hoping he'll make enough profit from this property to be able to go
0:10:01 > 0:10:04forward without his parents' financial and physical help.
0:10:04 > 0:10:08I'm just full of admiration for his courage and determination.
0:10:08 > 0:10:11Those qualities will stand him in good stead,
0:10:11 > 0:10:15because this project is potentially not the easiest.
0:10:15 > 0:10:18The more time I spend in here, the more work needs to be done!
0:10:18 > 0:10:20It's got obvious problems like the damp.
0:10:20 > 0:10:24This floor's particularly wobbly.
0:10:24 > 0:10:26But, you learn, don't you?
0:10:26 > 0:10:29The last property I did was a bit of a curveball,
0:10:29 > 0:10:33but you just take it on to next one and hopefully they'll get smoother and smoother
0:10:33 > 0:10:34and I'll know what to look for.
0:10:34 > 0:10:37So what kind of curveball were you thrown for your last property?
0:10:37 > 0:10:40The last one had ash in the foundations,
0:10:40 > 0:10:44which required me to break up the concrete,
0:10:44 > 0:10:47dig it all out with two buckets and a shovel.
0:10:47 > 0:10:51Probably dug up the best part of five tonnes.
0:10:51 > 0:10:53- In a week.- When you say you, you mean you?
0:10:53 > 0:10:55Yeah, just me on my own.
0:10:55 > 0:10:59- Really?- I think my dad came and took the glory of the last bucket,
0:10:59 > 0:11:03just to say he helped out! But, no, I did most of it.
0:11:03 > 0:11:06Do you think ash might be a problem with this property?
0:11:06 > 0:11:11Well, initially the floors are showing signs of what would be ash.
0:11:11 > 0:11:14They're raised, I pulled up the carpet,
0:11:14 > 0:11:17there's white sulphur marks coming through.
0:11:17 > 0:11:23But I'm hoping that it's too old to have had ash.
0:11:23 > 0:11:25Fingers crossed.
0:11:25 > 0:11:29The floor issue aside, Ali will tackle the downstairs layout.
0:11:29 > 0:11:34He's thinking about having the staircase moved and the possibility of moving the bathroom.
0:11:34 > 0:11:37There might also be a few walls to be knocked down.
0:11:37 > 0:11:40So is he up for that?
0:11:40 > 0:11:44I've knocked walls down before that needed supporting.
0:11:44 > 0:11:46Can't say I've done it quite on this scale before.
0:11:46 > 0:11:52But it's going to need re-plumbing, the electrics need doing,
0:11:52 > 0:11:54central heating needs putting in.
0:11:54 > 0:11:55All quite costly.
0:11:55 > 0:11:57- Yeah.- Which brings us to your budget.
0:11:57 > 0:12:03Yes, my budget I'm hoping will be between 20,000 - 25,000.
0:12:03 > 0:12:06- And timescale? - Four months, I'm hoping.
0:12:06 > 0:12:08Four months-ish, hopefully.
0:12:08 > 0:12:10Will you be able to commit a lot of your time to that?
0:12:10 > 0:12:15I'd like to say being self-employed and treating it as a full-time job,
0:12:15 > 0:12:19you work when you want and for as long as you want,
0:12:19 > 0:12:22but I've since found out that you end up working weekends and ridiculous
0:12:22 > 0:12:24hours just to get it done!
0:12:24 > 0:12:26I love the fire you have in your belly.
0:12:26 > 0:12:30What do your friends make of it? Is it totally different to the kind of thing they're doing right now?
0:12:30 > 0:12:33Yeah, they're all at university, partying.
0:12:33 > 0:12:35Tell me you indulge in a few parties, though.
0:12:35 > 0:12:38Oh, yeah, definitely. But it's sometimes a bit harder
0:12:38 > 0:12:42in the morning when you have to come back to work, to get it done!
0:12:42 > 0:12:46Honestly, I can't wait to see what you do with the place, and good luck.
0:12:46 > 0:12:48Thank you very much.
0:12:49 > 0:12:53Ali's story is moving and inspirational.
0:12:53 > 0:12:56This property is not without its problems.
0:12:56 > 0:12:58But you can't help but root for someone like him.
0:12:58 > 0:13:03A lovely guy. You can find out how he gets on later in the show.
0:13:06 > 0:13:12Birkenhead is a town in the Wirral Peninsula of Merseyside and is just two miles across the river
0:13:12 > 0:13:16to Liverpool's town centre.
0:13:16 > 0:13:17In the 1800s,
0:13:17 > 0:13:21many ships carried people and goods over to New York from Liverpool and
0:13:21 > 0:13:25Birkenhead can also claim its own famous export across the pond.
0:13:27 > 0:13:30The world-famous Central Park can actually trace some of its roots back to
0:13:30 > 0:13:33Birkenhead's Park.
0:13:33 > 0:13:37One of its creators, American landscape architect Frederick Law Olmsted,
0:13:37 > 0:13:40visited here in 1850.
0:13:40 > 0:13:43Inspired by this trip, Central Park was opened seven years later.
0:13:45 > 0:13:48Anyway, history lesson over, let's get on with today's property.
0:13:48 > 0:13:52# And I don't wanna waste more time
0:13:54 > 0:13:58# I'm in a New York state of mind. #
0:13:58 > 0:14:01The property I'm here to see is in this block of flats.
0:14:01 > 0:14:06It's a ground-floor, two-bed flat with a guide price of £25,000 plus.
0:14:06 > 0:14:08Let's get inside.
0:14:08 > 0:14:11# Hey, you're just too funky for me
0:14:11 > 0:14:17# I've gotta get inside of you... #
0:14:20 > 0:14:22OK.
0:14:22 > 0:14:25Right. Intercom system, I do like.
0:14:25 > 0:14:29Great for security, find out who's at the door.
0:14:29 > 0:14:33Alarm system also great for security, but try and get one that works.
0:14:33 > 0:14:36I think we need a new one right here!
0:14:36 > 0:14:39But, big hallway, which is good.
0:14:39 > 0:14:41In here we've got the bathroom.
0:14:41 > 0:14:43A nice-sized bathroom, as well.
0:14:43 > 0:14:46The tiles look in decent condition.
0:14:46 > 0:14:50There's carpet in here, as well, which I'm not a fan of in the bathroom.
0:14:50 > 0:14:53Not bad, needs tidying up.
0:14:53 > 0:14:56Just to the left there, we've got the second of the bedrooms,
0:14:56 > 0:14:58more of a single bedroom, that one.
0:14:58 > 0:15:01And then into bedroom number one, the larger of the two bedrooms.
0:15:01 > 0:15:05You could quite easily get a double bed in here, no probs.
0:15:05 > 0:15:09You've got textured ceilings. Positive note, you've got
0:15:09 > 0:15:12central heating and you've got what looks to be
0:15:12 > 0:15:14relatively new double glazing.
0:15:14 > 0:15:17Apart from a lick of paint and new carpets,
0:15:17 > 0:15:21I can't see anything else that needs to be done...
0:15:21 > 0:15:23yet.
0:15:23 > 0:15:26And here's the main living area at the front of the property.
0:15:26 > 0:15:30Your kitchen/living room, so to speak.
0:15:30 > 0:15:32Needs a new carpet as you can see down here.
0:15:32 > 0:15:34Looks a little bit tatty.
0:15:34 > 0:15:39The kitchen itself to me looks in good condition.
0:15:39 > 0:15:40Nice retro colour.
0:15:40 > 0:15:42But the boiler looks dated.
0:15:42 > 0:15:45Get a new one in and stick it on the back wall, as well.
0:15:45 > 0:15:48Keep it nice and flush with the kitchen units.
0:15:48 > 0:15:52Now, if that's the only problem we've got with this flat...
0:15:52 > 0:15:55# I ain't gotta work it out I know I'm onto a winner... #
0:15:55 > 0:15:58With the boiler being the only major expense here,
0:15:58 > 0:16:01this does seem like great value for anywhere near that guide price of
0:16:01 > 0:16:04£25,000 plus.
0:16:04 > 0:16:07Another bonus is that long lease of over 100 years.
0:16:07 > 0:16:10This place keeps getting better.
0:16:11 > 0:16:14Our flat is at the front of this block,
0:16:14 > 0:16:18which means it's furthest away from...
0:16:19 > 0:16:24..the railway line. Which is just over that fence there.
0:16:25 > 0:16:28Let me tell you, that might put some people off, but not me.
0:16:28 > 0:16:32I think it's a bonus, because this train line has got direct links
0:16:32 > 0:16:33into the centre of Liverpool
0:16:33 > 0:16:37and the surrounding areas. Got to be a thumbs up.
0:16:37 > 0:16:41# As far as I can see
0:16:43 > 0:16:46# You're the one for me
0:16:47 > 0:16:49- # No doubt about it - No doubt about it
0:16:49 > 0:16:52# I've got a one-track mind...#
0:16:52 > 0:16:58Arriving right on schedule was the agent from the auctioneers that sold the lot.
0:16:58 > 0:17:02I think this is a great buy for the guide price of £25,000 plus.
0:17:02 > 0:17:07Does she think I'm on the right track, or going off the rails?
0:17:07 > 0:17:10I think living beside a railway line has its pros and cons.
0:17:10 > 0:17:12Some people, you know, wouldn't want to, with the noise.
0:17:12 > 0:17:16I think others, you just get used to that noise once you've been there
0:17:16 > 0:17:18for so long, or if they don't have their own transport,
0:17:18 > 0:17:22it's convenient for them to get to any local train station.
0:17:22 > 0:17:27And what about the local market for two-bed flats such as this one?
0:17:27 > 0:17:29Demand for an apartment like this,
0:17:29 > 0:17:32I can't see it selling on the open market quickly,
0:17:32 > 0:17:35but it would definitely rent.
0:17:35 > 0:17:37So what kind of rental income could you get for this flat,
0:17:37 > 0:17:41guided at 25 grand plus?
0:17:41 > 0:17:44I think once the work's all been done, rental-wise,
0:17:44 > 0:17:49you'd be putting it on the market for 450 per calendar month.
0:17:49 > 0:17:52Now, I don't think this should be a big problem for anyone to turn around.
0:17:52 > 0:17:54Yes, you have got to address that boiler situation,
0:17:54 > 0:17:58and I don't think the train track is going to be a major problem.
0:17:58 > 0:18:03Let's find out who went full steam ahead when it went under the hammer.
0:18:03 > 0:18:05It's a two-bedroom ground-floor flat,
0:18:05 > 0:18:08you've got double glazing and central heating.
0:18:08 > 0:18:09I have a proxy on this.
0:18:09 > 0:18:11That said, let's go.
0:18:11 > 0:18:13The guide's 25,000.
0:18:13 > 0:18:17Let's see. Anybody in the room for this at £25,000?
0:18:17 > 0:18:21I will then start the proxy off at £25,000, then.
0:18:21 > 0:18:23So it's with the proxy at 25,000.
0:18:23 > 0:18:2626 is you, sir. I can go to 27.
0:18:26 > 0:18:28Can you do 28?
0:18:28 > 0:18:32- I'm 29...- The bidding between the proxy and those in the room took the
0:18:32 > 0:18:35price up to 38,500.
0:18:35 > 0:18:38You're 38½. You've done well! You took me out.
0:18:38 > 0:18:41I was doing my best to keep it with the proxy.
0:18:41 > 0:18:44Anybody been sitting patiently, waiting till the last moment,
0:18:44 > 0:18:46now's the time to jump in.
0:18:46 > 0:18:47It's 38.5 for the time being.
0:18:47 > 0:18:49For the first time...
0:18:49 > 0:18:52there we go. As predicted!
0:18:52 > 0:18:54A late entry to the party.
0:18:54 > 0:18:5839. By that window there is our current winning bidder.
0:18:58 > 0:19:00For the first time
0:19:00 > 0:19:02and the second time.
0:19:02 > 0:19:03You're back in at 39.5.
0:19:03 > 0:19:05Not giving it up lightly. 40.
0:19:07 > 0:19:10It's a half already. It's 39.5.
0:19:10 > 0:19:12You want to make it 39,750?
0:19:12 > 0:19:15I can't sell another lot with 750.
0:19:16 > 0:19:19Well, I might have to. Here we go. £39,750.
0:19:19 > 0:19:22Your bid, sir. For the first time...
0:19:22 > 0:19:27Second time, they're having one last chat over another £250 bid.
0:19:27 > 0:19:31No. Third and final time at £39,750.
0:19:31 > 0:19:33Right, it's happened twice at the same auction.
0:19:33 > 0:19:36Well done, it's yours at 39,750.
0:19:36 > 0:19:41The successful bid of 39,750 came from Harry.
0:19:46 > 0:19:50He bought this property with his business partner, Joe.
0:19:50 > 0:19:53I met them back at the flat to find out more.
0:19:53 > 0:19:54Well done, congratulations.
0:19:54 > 0:19:56- Thank you.- Why this particular property, then?
0:19:56 > 0:20:00I own a letting agency, so I know there's a tenant demand for it.
0:20:00 > 0:20:06And to us it just seemed like a no-brainer when we saw it and we saw the numbers. The numbers stacked up.
0:20:06 > 0:20:09- A walk in the park for you, this one?- Yes. Pretty much, yes.
0:20:09 > 0:20:13- Is it really?- Yes.- So how have you two come together in business, then?
0:20:13 > 0:20:18I worked for a letting agency, I've always been in the letting agency, property.
0:20:18 > 0:20:22Harry worked within the letting agency that I worked for.
0:20:22 > 0:20:24I then went off on my own, self-employed.
0:20:24 > 0:20:28Harry and I became really good friends and now business partners,
0:20:28 > 0:20:30golfing partners.
0:20:30 > 0:20:32And everything else, aren't we?
0:20:32 > 0:20:36- I still beat him at golf. - He still beats me at golf!
0:20:36 > 0:20:38He's got a few years on me, though, so we're all right.
0:20:38 > 0:20:40- Experience!- That's it!
0:20:40 > 0:20:44A bit of banter on the greens is par for the course.
0:20:44 > 0:20:49As long as it doesn't drive a wedge between this pair on this project.
0:20:49 > 0:20:51So what're you going to do to this place?
0:20:51 > 0:20:54Firstly we're going to strip out all the carpets and the flooring.
0:20:54 > 0:20:56Redecorate everywhere.
0:20:56 > 0:20:59Check the boiler out by the gas safety engineer.
0:20:59 > 0:21:00See, is the boiler working?
0:21:00 > 0:21:03So is this a small project for you two, then?
0:21:03 > 0:21:07- Yes.- This is a lower-end, quick-turnaround project.
0:21:07 > 0:21:10- All systems go?- I'll be in here, doing all the work.
0:21:10 > 0:21:12So, you're going to be doing all the work?
0:21:12 > 0:21:15- Yes.- OK, and how much is it going to cost to do the work that you've told
0:21:15 > 0:21:17me, including - let's say including the boiler, as well?
0:21:17 > 0:21:20We think about 2,500 all in.
0:21:20 > 0:21:23We have the facility where we have our own builders, obviously.
0:21:23 > 0:21:25We have Harry on hand
0:21:25 > 0:21:28- who is very hands-on. - Hands-on Harry!
0:21:28 > 0:21:30Hands-on Harry!
0:21:30 > 0:21:32So we can keep costs down.
0:21:32 > 0:21:36- OK.- And then I'll just ensure that the other side of things is dealt with -
0:21:36 > 0:21:38the lettings, the management, and everything else.
0:21:38 > 0:21:41- That'll be down to you? - That'll be down to me.
0:21:41 > 0:21:44- OK. No pressure! - No pressure!- No, none at all.
0:21:44 > 0:21:46- It won't be any pressure, because it's...- It's not.
0:21:46 > 0:21:49We have interest already - that was one of the reasons we bought it.
0:21:49 > 0:21:51We did all of our research prior to buying it,
0:21:51 > 0:21:53knowing there was a market for a tenant,
0:21:53 > 0:21:58so we'll have somebody ready and waiting to move in probably before we've finished.
0:21:58 > 0:22:00How about your timescale?
0:22:00 > 0:22:02Maximum, it will be three to four weeks, maximum.
0:22:02 > 0:22:06- Really?- Mmm. - That is sharp, isn't it?
0:22:06 > 0:22:09I know it's not a major refurb for you guys, but...
0:22:09 > 0:22:11We could potentially do it quicker.
0:22:11 > 0:22:14We have other projects on that we need to probably take a bit more
0:22:14 > 0:22:17priority, that have works ongoing on them.
0:22:17 > 0:22:21I can't wait to see how this goes. 2½ grand, four weeks?
0:22:21 > 0:22:23Five weeks? I'll give you five weeks.
0:22:23 > 0:22:25Give us five!
0:22:25 > 0:22:27Just in case we come back early!
0:22:28 > 0:22:30Good luck.
0:22:30 > 0:22:32- Thank you.- Pleasure.
0:22:32 > 0:22:36So this sounds like it's going to be a bit of a doddle for the lads.
0:22:36 > 0:22:41Joe's got his eye on the finances and he's going to make sure this place is tenanted ASAP.
0:22:41 > 0:22:45While Hands-on Harry has had a look around and found nothing to worry
0:22:45 > 0:22:48about. My only concern is that boiler.
0:22:48 > 0:22:52If it needs changing, how much is it going to add to their budget?
0:22:52 > 0:22:55You can find out all the answers to the questions later in the show.
0:22:57 > 0:22:59Coming up, in the Renfrewshire town of Paisley,
0:22:59 > 0:23:02there is an iconic building up for sale. But be warned...
0:23:02 > 0:23:07Something like this you just know is going to be a complete money pit.
0:23:08 > 0:23:11And in Birkenhead, is this refurbishment one of the best?
0:23:11 > 0:23:13It's actually better than other jobs he's done for us,
0:23:13 > 0:23:17so I was a little bit disappointed he hasn't done the other jobs to that level!
0:23:21 > 0:23:26But first, we return to Madeley in Staffordshire and the nearby village of Madeley Heath.
0:23:26 > 0:23:31This popular spot was where we first saw an end-terraced three-bedroom.
0:23:31 > 0:23:34Apart from keeping perhaps the double glazing,
0:23:34 > 0:23:37the house was going to need a complete scheme of works.
0:23:37 > 0:23:43Once the downstairs bathroom and kitchen layout was sorted, that is.
0:23:43 > 0:23:45Ah, this is really small.
0:23:45 > 0:23:47It is L-shaped, so a bit awkward.
0:23:47 > 0:23:49But it's so pokey!
0:23:49 > 0:23:52People would expect a bigger kitchen.
0:23:52 > 0:23:55Look at this! So that's narrow.
0:23:55 > 0:23:59You couldn't even get two people in. No chance of having a conversation.
0:23:59 > 0:24:03Mind you, there wasn't going to be much time for talking here.
0:24:03 > 0:24:06# A little less conversation, a little more action, please
0:24:06 > 0:24:10# All this aggravation ain't satisfaction in me... #
0:24:15 > 0:24:19Roll up the sleeves, shift that bathroom upstairs, clear the place out,
0:24:19 > 0:24:22and open up the kitchen. Those were my thoughts.
0:24:24 > 0:24:26You bought it, sir, well done.
0:24:26 > 0:24:30It was bought for £75,000 - with some financial input from his dad -
0:24:30 > 0:24:33by property developer Ali.
0:24:33 > 0:24:35And if you're thinking what I'm thinking -
0:24:35 > 0:24:38he's young for a property developer - well, you'd be right.
0:24:38 > 0:24:40He's just 20.
0:24:40 > 0:24:42But lacking in property experience?
0:24:42 > 0:24:45Oh, no. Not this lad.
0:24:45 > 0:24:47Is this your first property?
0:24:47 > 0:24:51No, this is actually my fourth investment property.
0:24:51 > 0:24:52When did you start?
0:24:52 > 0:24:54Probably started around 17.
0:24:54 > 0:24:57How, at 17, do you manage to do that?
0:24:57 > 0:24:59Yeah, well, it's a bit of an interesting story.
0:24:59 > 0:25:02Once I finished my A-levels, instead of going off to university,
0:25:02 > 0:25:04I had to have surgery to
0:25:04 > 0:25:07resurrect previous
0:25:07 > 0:25:09surgeries that had gone wrong,
0:25:09 > 0:25:13which were all caused from having a bone cancer at 12.
0:25:13 > 0:25:16So I'd been on crutches for five years.
0:25:16 > 0:25:21At which point, finished my A-levels, I thought, get it sorted.
0:25:21 > 0:25:24And whilst I was doing that, my parents just said, have a go at a house,
0:25:24 > 0:25:29keep you busy, you can do as much or as little as you want.
0:25:29 > 0:25:31Which suited me down to the ground.
0:25:31 > 0:25:34Ali is incredibly brave on so many levels.
0:25:34 > 0:25:36Not only facing his illness,
0:25:36 > 0:25:39but taking on projects that could easily overwhelm much older
0:25:39 > 0:25:41and experienced people.
0:25:41 > 0:25:47He's already tackled one property when he had to dig up the concrete floor because of red ash.
0:25:47 > 0:25:51With this house, he'd given himself a budget of £20,000 - £25,000
0:25:51 > 0:25:55and hopes to complete it all in four months,
0:25:55 > 0:25:57ready for the resale market.
0:25:57 > 0:26:00And now, five months on, we're back.
0:26:00 > 0:26:02So, come on, Ali, impress me!
0:26:08 > 0:26:10An impressive start.
0:26:10 > 0:26:12Pretty smart in the front room.
0:26:12 > 0:26:16But it's that downstairs bathroom and kitchen area which were really
0:26:16 > 0:26:18muddly and messy.
0:26:26 > 0:26:29That's more like it! A kitchen/diner with style.
0:26:29 > 0:26:31Nice work, Ali!
0:26:31 > 0:26:33He's even found room for a downstairs cloakroom.
0:26:35 > 0:26:38The old bathroom space could be used as a bedroom,
0:26:38 > 0:26:40but perhaps is best suited as a study.
0:26:41 > 0:26:43So what about upstairs?
0:26:43 > 0:26:47I really want to see the bathroom now.
0:27:00 > 0:27:02Impressive stuff all round.
0:27:02 > 0:27:06And this young developer has certainly made it look easy,
0:27:06 > 0:27:09despite some unexpected problems.
0:27:09 > 0:27:12Yeah, the roof was in dire straits.
0:27:13 > 0:27:15All the tiles had to come off,
0:27:15 > 0:27:19had to be felted and then the tiles put back on.
0:27:19 > 0:27:22And then the floors were dug out because they did have ash.
0:27:25 > 0:27:27Oh, no! Not again!
0:27:27 > 0:27:31Poor Ali. So not only did he have to dig up the floor,
0:27:31 > 0:27:33he had to replace the flooring, insulate it,
0:27:33 > 0:27:36and have new hard-core and concrete put in.
0:27:36 > 0:27:41And unfortunately, that wasn't the only "not again" moment.
0:27:47 > 0:27:51Digging out the floors is quite labour-intensive.
0:27:51 > 0:27:54I actually broke my leg
0:27:54 > 0:27:57whilst walking down a ramp. It snapped and gave way.
0:27:57 > 0:28:00So I was on my own when my leg broke.
0:28:00 > 0:28:03I phoned my dad, who was actually in a meeting at the time,
0:28:03 > 0:28:07and calmly asked if he could come and pick me up.
0:28:07 > 0:28:10Turns out he had to get an ambulance out to help.
0:28:10 > 0:28:14You'll not be surprised to hear that Ali was undaunted.
0:28:14 > 0:28:16I was on crutches for
0:28:16 > 0:28:19probably eight weeks, at which point I had surgery.
0:28:19 > 0:28:25And I was walking within a week from after the surgery and back to work within two weeks.
0:28:26 > 0:28:29Ali is certainly made from stern stuff!
0:28:29 > 0:28:31You know what they say...
0:28:31 > 0:28:34- # When the going gets tough - The tough get going
0:28:34 > 0:28:36# When the going gets rough... #
0:28:36 > 0:28:39He might have been back at the house in two weeks,
0:28:39 > 0:28:43but it was eight weeks before he could really get fully involved again.
0:28:43 > 0:28:44He needed to bring in additional help,
0:28:44 > 0:28:47and his dad Roger also came to the rescue -
0:28:47 > 0:28:51putting in the hours to help the house stay reasonably on track.
0:28:51 > 0:28:53And what about the budget?
0:28:53 > 0:28:54I was aiming for 20, as you do.
0:28:54 > 0:28:56You aim for the lower figure.
0:28:56 > 0:28:59And the extra 5,000 was for contingency.
0:28:59 > 0:29:03I've probably come in around 23,000.
0:29:03 > 0:29:07Wow, that is impressive considering what he had to contend with.
0:29:07 > 0:29:10So along with his 75 grand purchase price,
0:29:10 > 0:29:14Ali's total outlay will be £98,000.
0:29:14 > 0:29:16But has he made all the right moves here?
0:29:16 > 0:29:19Are two bedrooms better than three?
0:29:19 > 0:29:21Well, let's ask some estate agents to find out.
0:29:21 > 0:29:24First, the agent who saw it last time.
0:29:24 > 0:29:26Really good first impressions coming back to the property.
0:29:26 > 0:29:30As soon as you approach the property you can see it's been updated.
0:29:30 > 0:29:33Coming through the door, a really bright, fresh, new bathroom,
0:29:33 > 0:29:36new kitchen and very appealing throughout.
0:29:36 > 0:29:37In a couple of lines,
0:29:37 > 0:29:41I'd probably describe this property as the best of both worlds.
0:29:41 > 0:29:45Everything you need from a modern house,
0:29:45 > 0:29:49combined with what you'd really like to buy in terms of an older property.
0:29:51 > 0:29:53Looking good, Ali, looking good!
0:29:53 > 0:29:57Hopefully you get a good price on your 98 grand investment.
0:29:57 > 0:30:03I would love to place the property for sale for somewhere in the region of £125,000.
0:30:03 > 0:30:08I think, sensibly, a figure in the region of £125,000.
0:30:08 > 0:30:10I'm happy at 125.
0:30:10 > 0:30:14The higher-quality finish reflects that, I'm happy with it.
0:30:14 > 0:30:19So a potential profit of £27,000, minus taxes and fees,
0:30:19 > 0:30:24and the agents also thought rental values of £550 per calendar month
0:30:24 > 0:30:25should be possible.
0:30:25 > 0:30:28Which would give a yield of nearly 7%.
0:30:28 > 0:30:31So once more, in the face of adversity,
0:30:31 > 0:30:37Ali has shown his resilience and has made this venture a success.
0:30:37 > 0:30:42Near-future plan is to maybe go into new builds or land or commercial.
0:30:42 > 0:30:45But for now, just renovations.
0:30:45 > 0:30:46Just renovations!
0:30:46 > 0:30:50Just make sure you look after yourself, Ali, my pal-y.
0:30:50 > 0:30:52Please!
0:30:52 > 0:30:58# Take good care of yourself... #
0:31:05 > 0:31:07Seven miles east of Glasgow,
0:31:07 > 0:31:09close to the airport with good motorway links,
0:31:09 > 0:31:12is the Renfrewshire town of Paisley.
0:31:12 > 0:31:17This historic weaving town is home of course to the Paisley pattern and
0:31:17 > 0:31:20many of its old buildings reflect the wealth and prosperity of the town
0:31:20 > 0:31:24around the turn of the late 1800s.
0:31:24 > 0:31:28In recent years it's undergone considerable regeneration and I found yet
0:31:28 > 0:31:32another iconic building that, for me, has echoes of the past.
0:31:34 > 0:31:36Now, if you're of a certain age,
0:31:36 > 0:31:41then you will be able to complete the following without any problem whatsoever.
0:31:41 > 0:31:43Pugh, Pugh, Barney McGrew...?
0:31:45 > 0:31:47Cuthbert, Dibble, Grubb. Of course!
0:31:47 > 0:31:49Trumpton and Trumpton fire station.
0:31:49 > 0:31:52Maybe that's the reason I've always been fascinated by fire stations,
0:31:52 > 0:31:55fire engines, almost wanted to be a fireman.
0:31:55 > 0:31:58Well, how about owning your very own fire station?
0:31:58 > 0:32:03You know what? That is a possibility, here right in the centre of Paisley.
0:32:03 > 0:32:06£50,000 plus was the guide price for that!
0:32:06 > 0:32:11Not only is it an old fire station, it looks
0:32:11 > 0:32:14like a magical castle! What more could you want?!
0:32:18 > 0:32:24This really isn't like any of the fire stations I remember playing with as a boy. But it's amazing.
0:32:24 > 0:32:28With turrets and towers, it's straight out of a storybook.
0:32:28 > 0:32:32This huge Victorian building was built in 1897,
0:32:32 > 0:32:36but in recent times this story has been less of a happy one and it now
0:32:36 > 0:32:40finds itself on Scotland's Buildings at Risk list.
0:32:40 > 0:32:45Now obviously, its location was picked with primary use in mind,
0:32:45 > 0:32:47which is to be a fire station.
0:32:47 > 0:32:51Right now, though, in terms of
0:32:51 > 0:32:52potential future uses,
0:32:52 > 0:32:58it's not really ideal because you are surrounded on all sides by fairly busy roads.
0:32:58 > 0:32:59But what a building!
0:32:59 > 0:33:03I mean, this huge, great, beautiful design,
0:33:03 > 0:33:06local sandstone blocks.
0:33:06 > 0:33:08I mean, it really is a classic.
0:33:08 > 0:33:11I mean, so much so that it is in fact listed.
0:33:11 > 0:33:17And that just throws up a whole host of extra issues to deal with.
0:33:17 > 0:33:21Oh, well, if alarm bells weren't ringing before, they should be ringing now!
0:33:24 > 0:33:27Well, before you even get to the issues of what the planners
0:33:27 > 0:33:30would and wouldn't allow you to do with the building,
0:33:30 > 0:33:35you've got to cope with the building itself which is in a right old state.
0:33:35 > 0:33:37You could almost call it derelict.
0:33:37 > 0:33:39Yeah, all right, let's call it derelict!
0:33:39 > 0:33:41So much so that I can't actually go inside.
0:33:41 > 0:33:46Not only is it full of pigeon droppings,
0:33:46 > 0:33:49structurally, it's a bit dodgy.
0:33:49 > 0:33:54So we've got a building which, although on the outside it looks solid,
0:33:54 > 0:33:56has all sorts of potential problems.
0:33:56 > 0:33:58And something like this
0:33:58 > 0:34:01you just know is going to be a complete money pit.
0:34:01 > 0:34:06So you have to be very clear about what its potential could be.
0:34:06 > 0:34:10And as yet, I'm not. I need to think about that one.
0:34:13 > 0:34:17While I had a think, with hard hat on, following safety protocol,
0:34:17 > 0:34:21our intrepid cameraman had a look inside the ground-floor space.
0:34:22 > 0:34:26Quite frankly, it's pretty much as you'd expect - a right mess.
0:34:26 > 0:34:29So how to save this building?
0:34:29 > 0:34:34# Rescue me! #
0:34:42 > 0:34:45What could you do with this, though?
0:34:45 > 0:34:48How about residential, for a start? Convert it into flats.
0:34:48 > 0:34:51Well, there's a university nearby, so maybe student lets.
0:34:51 > 0:34:55Not ideal with the noisy road, but wow, who wouldn't want to live here?
0:34:55 > 0:34:58How about offices? Well, yeah, that might work.
0:34:58 > 0:35:01Or mixed-use development, perhaps?
0:35:01 > 0:35:04Or how about this? How about some funky restaurant?
0:35:04 > 0:35:05Big windows on the front here,
0:35:05 > 0:35:08tables and people wanting to be seen eating in the front there.
0:35:08 > 0:35:11Or possibly a microbrewery.
0:35:11 > 0:35:14The building certainly lends itself to that.
0:35:14 > 0:35:19I mean, the fantastic thing is all these are potentially possible!
0:35:19 > 0:35:24# Anything is possible, yeah... #
0:35:27 > 0:35:30Yes, with the building being in such a prominent position in the town,
0:35:30 > 0:35:33the council are keen to get it back in order and to see it used.
0:35:33 > 0:35:36So they're open to most ideas.
0:35:36 > 0:35:42I met up with the then leader of the Renfrewshire Council to find out more.
0:35:42 > 0:35:46So, Mark, an absolutely incredible opportunity here.
0:35:46 > 0:35:49What would you like to see happen to the building?
0:35:49 > 0:35:53I think it would be really good as some kind of commercial space.
0:35:54 > 0:35:58You know, something that we could maybe do to encourage businesses.
0:35:58 > 0:36:00There's a lot of, they call them incubators,
0:36:00 > 0:36:04and small business units that we can help start the really small
0:36:04 > 0:36:06businesses, the micro-businesses, to grow.
0:36:06 > 0:36:10That's something certainly from an economic point of view would be really good.
0:36:10 > 0:36:13And do you know much about the potential grants that might be
0:36:13 > 0:36:15available to help somebody?
0:36:15 > 0:36:17They'd be many and varied.
0:36:17 > 0:36:19I'm not sure in terms of the amounts.
0:36:19 > 0:36:21No. But there would be something there?
0:36:21 > 0:36:25Yeah, yeah. From government grants to grants coming from Renfrewshire
0:36:25 > 0:36:27Council as well.
0:36:27 > 0:36:29Ah, grants might be the key to this.
0:36:29 > 0:36:32A developer on their own might feel the amount of work,
0:36:32 > 0:36:37red tape and general hassle that comes with such a large problem listed building
0:36:37 > 0:36:39doesn't merit the returns.
0:36:39 > 0:36:41But with financial help from a range of grants,
0:36:41 > 0:36:44suddenly the project could be feasible.
0:36:46 > 0:36:49So what does an agent from the auction house that sold it think?
0:36:49 > 0:36:52What does he feel the local market needs?
0:36:52 > 0:36:54This building is over 7,000 square feet,
0:36:54 > 0:36:57so there's plenty of scope for a mixture of properties.
0:36:57 > 0:37:00I think one and two-bedroom flats would be the right mixture.
0:37:02 > 0:37:05OK, but what kind of returns could flats generate in resale,
0:37:05 > 0:37:07and in rental?
0:37:07 > 0:37:12So a one-bedroom flat locally will sell between 40 and £50,000.
0:37:12 > 0:37:16A two-bedroom flat, traditional, in a nice building, will be 60 to 70.
0:37:16 > 0:37:18Rental use in Paisley,
0:37:18 > 0:37:21normally a one-bedroom flat you would rent between 350 and £400.
0:37:21 > 0:37:28Two-bedroom flats here would rent between 450 and £550.
0:37:28 > 0:37:31And there's the rub. Because even if you turned the entire building over
0:37:31 > 0:37:34to residential, and got, say, 12 two-bed flats in,
0:37:34 > 0:37:40your total return would only be around £800,000.
0:37:40 > 0:37:44Yes, I suspect this is a £1 million-plus project.
0:37:44 > 0:37:48So this will need some cash from elsewhere to make it worth investing in.
0:37:51 > 0:37:53Well, there are so many ifs,
0:37:53 > 0:37:57buts and maybes with this particular property.
0:37:57 > 0:37:59You know what? Who cares?
0:37:59 > 0:38:02Who wouldn't want to own that building?!
0:38:03 > 0:38:08Let's find out who fell for it when it went under the hammer.
0:38:11 > 0:38:14Original Victorian Paisley fire station,
0:38:14 > 0:38:17large landmark building in the heart of Paisley.
0:38:17 > 0:38:19Headquarters or perhaps mixed use.
0:38:19 > 0:38:20Let's get it started.
0:38:20 > 0:38:2240. Need a bid at 40.
0:38:22 > 0:38:25Can't sell it, withdraw it if I don't get one.
0:38:25 > 0:38:2840 here. At 40 I'm bid now.
0:38:28 > 0:38:2941 here.
0:38:29 > 0:38:32Just beat you to it, sir, sorry. 42 can I say?
0:38:32 > 0:38:3743. 44. 45. 45 I'm bid.
0:38:37 > 0:38:4146. 47. 47 I'm bid.
0:38:41 > 0:38:4648. 49. 49 I'm bid.
0:38:46 > 0:38:4750. Shake of the head.
0:38:47 > 0:38:49With you at £49,000.
0:38:49 > 0:38:52At £49,000, then.
0:38:52 > 0:38:56First time. £49,000 second time.
0:38:56 > 0:39:01Third and final time. What a bargain. Well done, sir.
0:39:01 > 0:39:06And so just below the guide price for £49,000,
0:39:06 > 0:39:11the large derelict former Paisley fire station was bought by local man Ross.
0:39:11 > 0:39:15He joined me back at the site with his twin brother, Martin.
0:39:15 > 0:39:18He's the one on the right. And there really was only one burning question
0:39:18 > 0:39:20I had to start with.
0:39:20 > 0:39:24# Why? #
0:39:24 > 0:39:26Ross, Martin, great to meet you both.
0:39:26 > 0:39:29- How are you doing?- Tell me why you wanted to buy it.
0:39:29 > 0:39:31It was kind of done on a whim.
0:39:31 > 0:39:33- On a whim!- Yes.
0:39:33 > 0:39:37- As you do!- It was at auction, it's a good big building, kind of thing.
0:39:37 > 0:39:39So we thought...give it a shot.
0:39:39 > 0:39:41I mean, it's a lot of money,
0:39:41 > 0:39:43but it's not a massive amount of money to take a punt, though, is it?
0:39:43 > 0:39:45No, no, that's it.
0:39:45 > 0:39:47At 50 grand,
0:39:47 > 0:39:49it's not a lot, it's not a big punt to take, you know?
0:39:49 > 0:39:51For the amount of building you're getting for it,
0:39:51 > 0:39:54I certainly think it's worth a chance.
0:39:54 > 0:39:56I mean, it is a quite extraordinary building.
0:39:56 > 0:39:59Yeah. It's one of the nicest buildings in Paisley.
0:39:59 > 0:40:01Fingers crossed we can do something good with it.
0:40:01 > 0:40:03Tell me about you two, then.
0:40:03 > 0:40:05I'm a joiner by trade, you know?
0:40:05 > 0:40:07- A joiner?- Yeah. I run my own business,
0:40:07 > 0:40:10I have done for seven years.
0:40:10 > 0:40:12Don't get me wrong, I've never done anything this size!
0:40:12 > 0:40:15I've done wee projects, kind of thing.
0:40:15 > 0:40:17Small flats, kind of thing.
0:40:17 > 0:40:19One- and two-bed flats, you know.
0:40:19 > 0:40:22So we've always worked together on that, you know.
0:40:22 > 0:40:24- What do you do, Ross? - I'm a mechanic by trade.
0:40:24 > 0:40:26Totally different, obviously, not in the building trade.
0:40:26 > 0:40:33But I do kind of shift work, so that allows me to, in my spare time,
0:40:33 > 0:40:36help out with Martin and do maybe the odd flat,
0:40:36 > 0:40:39like smaller-time development stuff, kind of thing.
0:40:39 > 0:40:42But nothing, as Martin says, on the scale of this kind of thing.
0:40:42 > 0:40:44So let's come on to talking about it.
0:40:44 > 0:40:47What on earth are you going to do with it?
0:40:47 > 0:40:50There's been a lot of work done by the architect who's worked on it
0:40:50 > 0:40:54previously. He sat down with
0:40:54 > 0:40:59a potential commercial client to take it on a 30-year leas.
0:40:59 > 0:41:00- As what?- As offices.
0:41:00 > 0:41:03- Offices?- Yes, office accommodation.
0:41:03 > 0:41:06And they would be interested in taking the whole lot of it.
0:41:06 > 0:41:11But running alongside that would be a residential project.
0:41:11 > 0:41:15- At the same time.- At the same time. Cos we don't obviously want to rule out...
0:41:15 > 0:41:18Cos it could also go into ten flats, as well.
0:41:18 > 0:41:22Right. What about the budget, then?
0:41:22 > 0:41:25- I mean...- In terms of budget, it's all down to grant money, I think.
0:41:25 > 0:41:30I'm told there is quite a substantial grant available,
0:41:30 > 0:41:33to enable the project to move forward.
0:41:33 > 0:41:35Because this thing will just gobble up money, won't it?
0:41:35 > 0:41:40- Yeah.- Figures going about round about the 1.2 million kind of thing.
0:41:40 > 0:41:431.2 million? So in terms of timescales?
0:41:43 > 0:41:46Well, the architect's looking to get it to the planning stage
0:41:46 > 0:41:48within three or four months.
0:41:48 > 0:41:52- Right.- And from there on we hope maybe a year after that.
0:41:52 > 0:41:53A year? So to get it...?
0:41:53 > 0:41:56To get all the work done, you know.
0:41:56 > 0:42:01And what do you potentially hope to gain out of it?
0:42:01 > 0:42:04If we get a commercial tenant in, kind of thing, with a 30-year lease,
0:42:04 > 0:42:08it will obviously go towards pension, essentially, or sell it on,
0:42:08 > 0:42:10depending how the figures stack up.
0:42:10 > 0:42:12It's all very ifs, buts and maybes.
0:42:12 > 0:42:13It's very early.
0:42:13 > 0:42:15A very early stage, aye.
0:42:15 > 0:42:17You could come back in so many months' time and it could be flats,
0:42:17 > 0:42:19you could come back in so many months' time,
0:42:19 > 0:42:22it could be office accommodation.
0:42:22 > 0:42:25Who knows? Well, it's all very exciting.
0:42:25 > 0:42:27Yes. It is exciting! It is exciting, you know.
0:42:27 > 0:42:29Well, listen, congratulations!
0:42:29 > 0:42:30- Thank you very much.- Good luck.
0:42:30 > 0:42:33- Thank you!- I think we might need it!
0:42:33 > 0:42:38- And we really look forward to seeing how you get on.- No bother.
0:42:38 > 0:42:43So identical twins Ross and Martin buying this place on a bit of a whim
0:42:43 > 0:42:44and a punt.
0:42:44 > 0:42:48Still, if it comes together,
0:42:48 > 0:42:54this could be a really interesting project, couldn't it?
0:42:54 > 0:42:55Can't wait to see what happens.
0:42:55 > 0:42:58You can find out later in the show.
0:43:01 > 0:43:04Well, when it comes to any property journey,
0:43:04 > 0:43:07there comes a point where you have to make some decisions.
0:43:07 > 0:43:08Which way is the renovation going to go?
0:43:08 > 0:43:12Do you go for the high-spec option and risk overspending,
0:43:12 > 0:43:14or no frills and hope for more profit?
0:43:14 > 0:43:17Yes, indeed. We've found out how one project got on,
0:43:17 > 0:43:20but what about the other two? Let's find out.
0:43:21 > 0:43:24Just across the Mersey from the city of Liverpool is the town of
0:43:24 > 0:43:26Birkenhead.
0:43:26 > 0:43:30It was here on the ground floor of this purpose-built apartment block
0:43:30 > 0:43:32that we first saw a two-bed flat.
0:43:32 > 0:43:36I thought this place was pretty together.
0:43:36 > 0:43:42You've got central heating and you've got what looks to be relatively new double glazing.
0:43:42 > 0:43:45Apart from a lick of paint and new carpets,
0:43:45 > 0:43:48can't see anything else that needs to be done...
0:43:48 > 0:43:49yet.
0:43:49 > 0:43:53Well, further exploration did reveal that the bathroom could do with
0:43:53 > 0:43:56a bit of an update and the kitchen needed a spruce up.
0:43:56 > 0:43:59After a quick refurb and a bit of elbow grease, it would be job done.
0:44:00 > 0:44:02And although the flat was close to the railway line,
0:44:02 > 0:44:08I didn't think it would greatly derail its prospects as an investment project.
0:44:08 > 0:44:14It was snapped up at auction for 39,750 by property developing duo
0:44:14 > 0:44:17Harry and Joe.
0:44:17 > 0:44:21With Harry being a property maintenance and building contractor
0:44:21 > 0:44:25and Joe a letting agent, they both brought different skills to the table.
0:44:26 > 0:44:29We have Harry on hand
0:44:29 > 0:44:32- who is very hands-on. - Yes. Hands-on Harry!
0:44:32 > 0:44:34- Hands-on Harry!- Hands-on Harry!
0:44:34 > 0:44:36So we can keep costs down.
0:44:36 > 0:44:40- OK.- And then I'll just ensure that the other side of things is dealt with -
0:44:40 > 0:44:43the lettings, the management and everything else.
0:44:43 > 0:44:45Just to ensure everything goes smoothly. That will be down to me.
0:44:45 > 0:44:49And Hands-on Harry had a budget of 2½ grand at his disposal.
0:44:49 > 0:44:52And with a tenant already lined up by Joe,
0:44:52 > 0:44:56he was hoping Harry could get the flat ready within that four-to-five-week timescale.
0:44:56 > 0:45:00So Harry was going to really need to crack on.
0:45:11 > 0:45:12Just over five weeks later,
0:45:12 > 0:45:16we are indeed back to check on Harry's handiwork.
0:45:27 > 0:45:32New laminate flooring and decoration, that is just the ticket.
0:45:39 > 0:45:44With the kitchen, we stripped out the kitchen worktops.
0:45:44 > 0:45:49Painted the kitchen units and then put a glaze over them to protect them.
0:45:49 > 0:45:51I didn't actually mind those green cabinets,
0:45:51 > 0:45:54but the white finish does look fresher and crisper.
0:45:54 > 0:45:57It turned out the boiler had a few more years in it yet.
0:45:59 > 0:46:01That's a result.
0:46:03 > 0:46:06And the two bedrooms are looking mighty fine.
0:46:10 > 0:46:12What about the bathroom?
0:46:12 > 0:46:15Re-tiled the bathroom, shower area.
0:46:15 > 0:46:17Put a new bath panel in.
0:46:19 > 0:46:23And I'm glad to see the carpet has gone and has been replaced with
0:46:23 > 0:46:25a much more practical vinyl flooring.
0:46:25 > 0:46:28You have to say, these changes are spot-on.
0:46:30 > 0:46:34But does Joe think Harry's work is up to his normal standard?
0:46:34 > 0:46:37It's actually better than other jobs he's done for us,
0:46:37 > 0:46:41so I was a little bit disappointed he hasn't done the other jobs to that level!
0:46:41 > 0:46:44No, it's great. We knew it was going to be... You know,
0:46:44 > 0:46:46we agreed on the work that was going to be done,
0:46:46 > 0:46:49we agreed the price of the work that was going to be done.
0:46:49 > 0:46:52So from my point of view, I'm happy, Harry's happy,
0:46:52 > 0:46:54and we're ready to move on.
0:46:56 > 0:46:59Harry does bring in other tradesmen to help with some of the work.
0:46:59 > 0:47:04But while he's still Hands-on Harry, it's very much stay away, Joe!
0:47:04 > 0:47:07I work best behind a desk, so I'll leave...
0:47:07 > 0:47:10I'll leave all the building work to Harry and I'll concentrate on finding
0:47:10 > 0:47:14the next property. So that's where I'll operate.
0:47:22 > 0:47:25Yeah, yeah, Joe, you just sit down and tap away at the computer.
0:47:25 > 0:47:27Leave all the hard work to Harry!
0:47:27 > 0:47:30In fairness to him, he's already got a tenant lined up.
0:47:30 > 0:47:34So the flat can start generating income to cover some of their outlay.
0:47:36 > 0:47:41We spent in total 1,360, so...
0:47:42 > 0:47:46Plus my own labour, which I never added on!
0:47:46 > 0:47:50And the late nights. But, no, it was... We was under budget.
0:47:52 > 0:47:57The original budget was 2.5 grand, so they came in almost 50% under.
0:47:57 > 0:48:01With their £39,750 purchase price,
0:48:01 > 0:48:06they have spent in total a shade over 41 grand.
0:48:06 > 0:48:08Seems like pretty good value to me.
0:48:08 > 0:48:12But what do two local estate agents make of Harry's handiwork?
0:48:12 > 0:48:17Yeah, it looks very clean finish, clean lines, modern feel.
0:48:17 > 0:48:21Good-quality carpets, good-quality laminate flooring.
0:48:21 > 0:48:23The kitchen looks modern and clean.
0:48:23 > 0:48:25And it's ready to go.
0:48:25 > 0:48:28The selling point of the property is certainly the condition.
0:48:28 > 0:48:30The internal condition, it's very good.
0:48:30 > 0:48:34Also the location, transport links and local amenities.
0:48:34 > 0:48:38I really like the open-plan living/kitchen area.
0:48:38 > 0:48:42I love the fact that it's got parking, gardens.
0:48:42 > 0:48:46The two bedrooms are of a good size.
0:48:46 > 0:48:49It's got a nice feel to it when you come in to the property.
0:48:51 > 0:48:55With a tenant already lined up, this isn't currently a resale project,
0:48:55 > 0:48:58but I'm still intrigued to know whether Joe and Harry's 41 grand
0:48:58 > 0:49:01investment is a solid one.
0:49:03 > 0:49:08I think this property is worth, on the resale market, £50,000.
0:49:08 > 0:49:13If we were to sell the property I'd market it at £50,000.
0:49:13 > 0:49:17And would advise offers of £45,000 being accepted.
0:49:17 > 0:49:19It's probably about right for the market, isn't it?
0:49:19 > 0:49:21It's nice to know there's a little bit of equity in it,
0:49:21 > 0:49:24based on what we bought it for and what we spent.
0:49:24 > 0:49:27But regardless, we're going to be renting it out.
0:49:27 > 0:49:31So currently there could be a small pre-tax profit of between four and
0:49:31 > 0:49:33nine grand on the resale market.
0:49:33 > 0:49:37But this is a longer-term project aimed at the rental market.
0:49:37 > 0:49:42I believe this apartment will fetch between £425 to £450
0:49:42 > 0:49:45per calendar month.
0:49:45 > 0:49:50I believe the flat could achieve £375 to £425 per calendar month.
0:49:50 > 0:49:52We're at the higher end of that figure,
0:49:52 > 0:49:55we did all of our research before we bought the property.
0:49:55 > 0:49:59We knew we'd be able to get 450 to the level
0:49:59 > 0:50:01we were going to do it to.
0:50:01 > 0:50:02And we've managed to get 450,
0:50:02 > 0:50:07so we're fairly happy with that based on what we've spent.
0:50:07 > 0:50:12That £450 per calendar month equals a very healthy rental yield of over
0:50:12 > 0:50:1513%. That is very good.
0:50:15 > 0:50:17And with other properties already lined up,
0:50:17 > 0:50:20I'm guessing the Harry and Joe property machine will roll on.
0:50:23 > 0:50:25- Definitely.- Definitely.
0:50:25 > 0:50:27You know, we've known each other for years.
0:50:27 > 0:50:30The relationship works well.
0:50:30 > 0:50:33And, yeah, I think the simpler we can make it, the better.
0:50:33 > 0:50:37And we seem to be doing a pretty good job so far.
0:50:40 > 0:50:4312 miles west of Glasgow is the town of Paisley,
0:50:43 > 0:50:47and this is a place that boasts a number of fine buildings such as
0:50:47 > 0:50:50Paisley Abbey and the Townhall.
0:50:55 > 0:50:58And near to the centre of the town was yet another example of Victorian
0:50:58 > 0:51:00splendour.
0:51:00 > 0:51:04£50,000 plus was the guide price for that.
0:51:04 > 0:51:10Not only is it an old fire station, it looks like a magical castle!
0:51:10 > 0:51:12What more could you want?!
0:51:12 > 0:51:17But this former fire station was in need of rescue itself.
0:51:17 > 0:51:20We've got a building which, although on the outside it looks solid,
0:51:20 > 0:51:23has all sorts of potential problems.
0:51:23 > 0:51:24And something like this
0:51:24 > 0:51:28you just know is going to be a complete money pit.
0:51:28 > 0:51:33So you have to be very clear about what its potential could be.
0:51:33 > 0:51:37Listed on the Buildings at Risk list, derelict,
0:51:37 > 0:51:40this iconic building would be some project.
0:51:40 > 0:51:42But undeterred by all its problems,
0:51:42 > 0:51:46the old fire station was bought at auction by local twins Martin -
0:51:46 > 0:51:51on the right - and Ross for just £49,000.
0:51:51 > 0:51:53Brave lads!
0:51:53 > 0:51:57# Take on me
0:51:57 > 0:52:02# Take me on... #
0:52:04 > 0:52:05Tell me why you wanted to buy it.
0:52:07 > 0:52:09- Just kind of done it on a whim. - On a whim?
0:52:09 > 0:52:11- Yes.- As you do.
0:52:11 > 0:52:15Yeah. It was at auction and it's a good big building so we thought,
0:52:15 > 0:52:19- give it a shot.- So the lads bought it knowing it was a bit of a gamble.
0:52:19 > 0:52:23Martin is a joiner by trade and Ross is a mechanic but has helped Martin
0:52:23 > 0:52:27on building projects before, but nothing on this scale.
0:52:27 > 0:52:31There were at least architect plans for the twins' whim and they outlined
0:52:31 > 0:52:35the possibility of either making the building for sole commercial use
0:52:35 > 0:52:39or a mixture of commercial and residential apartments.
0:52:39 > 0:52:41Importantly for Ross and Martin,
0:52:41 > 0:52:45they hoped there was going to be grants available for what they suspected
0:52:45 > 0:52:49would be a million-pound-plus project.
0:52:49 > 0:52:52Now over three years on, we're back.
0:52:54 > 0:52:57# You got me wrapped up Uh-oh
0:52:57 > 0:53:01# You got me so wrapped up Uh-oh... #
0:53:05 > 0:53:10So the building is under wraps but what's beneath that cover?
0:53:15 > 0:53:19Oh, like that Christmas present that seems so exciting sitting under the
0:53:19 > 0:53:22tree, the content turned out to be a little disappointing.
0:53:22 > 0:53:26Not the toy racing car you wanted - just a pair of old socks.
0:53:26 > 0:53:27So what's been going on?
0:53:29 > 0:53:35We've secured planning for office space along with listed building consent,
0:53:35 > 0:53:38which has enabled us to put the scaffold around the building,
0:53:38 > 0:53:44obtain costs for windows, start stone cleaning
0:53:44 > 0:53:47and scaffold will also facilitate
0:53:47 > 0:53:50any roof repairs that we're going to be doing.
0:53:50 > 0:53:52Ah, so after a fair amount of wrangling,
0:53:52 > 0:53:56they've managed to at last get their project underway.
0:53:56 > 0:54:00They're now endeavouring to make the building watertight and much more
0:54:00 > 0:54:03presentable, but then what?
0:54:03 > 0:54:07I think the ground floor definitely will be commercial and the upper two
0:54:07 > 0:54:09floors will be residential.
0:54:09 > 0:54:11That is what there is a demand for.
0:54:11 > 0:54:15Predominantly we'll focus on finding a tenant for the ground floor
0:54:15 > 0:54:18and then we'll then develop the top two floors.
0:54:18 > 0:54:20Ross and Martin were hoping to get some additional funds for the
0:54:20 > 0:54:22renovation work through grants,
0:54:22 > 0:54:26but currently they haven't been successful in getting any additional
0:54:26 > 0:54:30monies, so the idea would be that, having secured a commercial client
0:54:30 > 0:54:36on the ground floor, they can potentially raise money to tackle the upper two floors
0:54:36 > 0:54:38and create eight one-to-two-bed flats.
0:54:38 > 0:54:42So how did they feel about having to go it alone?
0:54:42 > 0:54:44We just need to go on with it.
0:54:44 > 0:54:48It's our building at the end of the day so we're responsible for putting it right.
0:54:48 > 0:54:53We've bought it now so we're committed and getting it fixed.
0:54:53 > 0:54:55Fair play to the lads. Despite the difficulties,
0:54:55 > 0:55:00they've ploughed on and they're determined to restore this building back to its former glory.
0:55:00 > 0:55:02And this isn't all talk.
0:55:02 > 0:55:05They're putting their money where their mouth is.
0:55:05 > 0:55:11# I will try to fix you. #
0:55:11 > 0:55:15Budget, we didn't really know. What we have done is committed 250,000,
0:55:15 > 0:55:18which I think is quite conservative,
0:55:18 > 0:55:21but I think it would do what it has to do kind of thing.
0:55:21 > 0:55:25I think where the serious money is going to be spent is the internal fit-out,
0:55:25 > 0:55:28hence the reason why we've got to make sure we get it right.
0:55:28 > 0:55:31If they can secure a commercial client on the ground floor,
0:55:31 > 0:55:35they hope they can complete the flats and finish the whole project
0:55:35 > 0:55:41in a year's time. And they're in no doubt the total cost will be in excess of a million pounds.
0:55:41 > 0:55:44So can a mix of commercial and residential space work?
0:55:44 > 0:55:46What does a local estate agent think?
0:55:47 > 0:55:52I think because of the position of the site, there's commercial options
0:55:52 > 0:55:57such as potentially coffee shops or offices.
0:55:57 > 0:56:01There's a lack of supply as far as residential property goes.
0:56:01 > 0:56:06If there are some well-regenerated historic buildings,
0:56:06 > 0:56:08there is an appetite for those,
0:56:08 > 0:56:11mainly within the young professional market, but the developer would
0:56:11 > 0:56:14probably have to make sure they were putting in a high specification of
0:56:14 > 0:56:18finish so as to attract that audience to this part of Paisley.
0:56:18 > 0:56:23Ross and Martin are hoping for eight mainly two-bed flats on the upper floors.
0:56:23 > 0:56:27So what kind of values might those achieve on the resale market?
0:56:27 > 0:56:30If the builder was to put in one-bedroom and two-bedroom apartments,
0:56:30 > 0:56:35you could look at a value for one bedrooms of being between 80 to 90,000.
0:56:35 > 0:56:40Two bedrooms being somewhere in the region of 100 to 115,000 depending
0:56:40 > 0:56:44- on the specifications.- Those resale values equate to an average price of
0:56:44 > 0:56:50£100,000 per flat, so eight flats could bring you £800,000.
0:56:50 > 0:56:53How do they feel about that?
0:56:53 > 0:56:57It's kind of what we were expecting, to be honest. You know,
0:56:57 > 0:57:00flats in similar buildings in Paisley have sold for that kind of money,
0:57:00 > 0:57:02so we'd be happy with that.
0:57:02 > 0:57:05And, of course, there's the commercial space, as well.
0:57:05 > 0:57:09But given that no tenants have been identified for the commercial spaces
0:57:09 > 0:57:15yet, it would be impossible to predict what the rental or sale value would be the moment.
0:57:15 > 0:57:17So three years on,
0:57:17 > 0:57:20how do they feel about their whimsical purchase now?
0:57:21 > 0:57:23I'm happy we've got it.
0:57:23 > 0:57:27I think it's a good building and once it's done, it'll be great.
0:57:27 > 0:57:30Don't get me wrong, a lot of heartache along the way but I think you
0:57:30 > 0:57:33expect that with old buildings and stuff like that.
0:57:33 > 0:57:37No regrets. We're doing OK with it.
0:57:40 > 0:57:41Good on you, lads.
0:57:45 > 0:57:47And somehow, I don't think this is goodbye.
0:57:47 > 0:57:49More au revoir,
0:57:49 > 0:57:52because hopefully we'll be back and see what I'm sure will be a
0:57:52 > 0:57:55magnificent building when it's all finished.
0:58:02 > 0:58:05Have today's properties inspired you to try out the buzz of the auction?
0:58:05 > 0:58:10Or perhaps you've been watching and enjoying the show from the comfort of your sofa.
0:58:10 > 0:58:14Either way, we'll be regaling you with more renovation stories next time,
0:58:14 > 0:58:16so do join us on Homes Under The Hammer.
0:58:16 > 0:58:18- Bye-bye.- Bye-bye.- Bye-bye.