0:00:03 > 0:00:05Hello, welcome to the show. Now, the twists and turns
0:00:05 > 0:00:08and highs and lows of the property market can actually put a lot
0:00:08 > 0:00:12of people off investing. Yes, it can be an unpredictable journey,
0:00:12 > 0:00:15but if you start your search well prepared, you might get it right.
0:00:15 > 0:00:17And when thinking about where to start,
0:00:17 > 0:00:20why not consider buying your next property at auction?
0:00:47 > 0:00:50Unfortunately, there's no magic formula when it comes to property
0:00:50 > 0:00:54development, and it can be hard to judge the potential from afar.
0:00:54 > 0:00:57Yeah, that's why buyers on Homes Under The Hammer often get it right.
0:00:57 > 0:01:01They do their research and they view the property.
0:01:01 > 0:01:04So, were the buyers on today's show prepared?
0:01:04 > 0:01:05Let's see what they bought.
0:01:07 > 0:01:09'Coming up, Lucy is in Coulsdon, London,
0:01:09 > 0:01:13'but this three-bed semi ain't all it's cracked up to be.'
0:01:13 > 0:01:15Look at that crack.
0:01:17 > 0:01:20'Space is important to me when it comes to these commercial premises
0:01:20 > 0:01:22'in Derby city centre.'
0:01:22 > 0:01:23Wow.
0:01:23 > 0:01:25HE LAUGHS Look at the size of this place.
0:01:26 > 0:01:32'This grubby ground floor flat in Telford is a bit of a BYOB,
0:01:32 > 0:01:33'you know, bring your own bleach.'
0:01:34 > 0:01:36It could do with a bit of a wash.
0:01:39 > 0:01:41'All these properties have been sold at auction,
0:01:41 > 0:01:43'and we'll find out who bought them,
0:01:43 > 0:01:45'and what they paid when they went under the hammer.'
0:01:45 > 0:01:46GAVEL BANGS Yours, sir.
0:01:49 > 0:01:52'Today, Lucy is in the small town of Coulsdon.
0:01:52 > 0:01:55'Coulsdon lies within the far southern reaches
0:01:55 > 0:01:57'of the Greater London boundary.'
0:01:59 > 0:02:03'It has two train stations and the and M25 can be accessed
0:02:03 > 0:02:06'in just 15 minutes, which has proved attractive for buyers
0:02:06 > 0:02:08'who work in the city.
0:02:08 > 0:02:09'And speaking of busy routes...'
0:02:10 > 0:02:13Now, the first thing you'll notice about this road, well,
0:02:13 > 0:02:15it's really busy.
0:02:15 > 0:02:17And there's lots of traffic hurtling past.
0:02:17 > 0:02:20But I'm not one to dwell on the negatives,
0:02:20 > 0:02:23and I'm really pleased to see that the property I'm here to look at
0:02:23 > 0:02:27is set back from the road by this rather long driveway.
0:02:27 > 0:02:29And that means, of course, off-street parking.
0:02:29 > 0:02:31It's a semi, it's got three bedrooms,
0:02:31 > 0:02:35and it had a guide price of ?350,000 plus.
0:02:39 > 0:02:41'It looks pretty good from the outside,
0:02:41 > 0:02:44'and as well as that long driveway, it also has a garage.'
0:02:47 > 0:02:49So, even though I'm inside the property,
0:02:49 > 0:02:53you can still hear a little bit of that road noise out there.
0:02:53 > 0:02:57The first thing I notice is this beautiful stained glass window
0:02:57 > 0:02:59which I absolutely love.
0:02:59 > 0:03:02I know it's not to everybody's taste, but I particularly love that.
0:03:02 > 0:03:05But look how the window is on the slant.
0:03:05 > 0:03:09And even walking in here you feel a little bit like you just want
0:03:09 > 0:03:13to keep doing that. So, this house is definitely sort of leaning
0:03:13 > 0:03:14towards this way.
0:03:14 > 0:03:18But again, you'll have an abundance of lovely '30s character.
0:03:18 > 0:03:21I bet underneath all of these, you've got nice little spindles,
0:03:21 > 0:03:25you've got some Bakelite switches here which probably don't comply
0:03:25 > 0:03:28with the current regulations, but they look lovely.
0:03:28 > 0:03:29Nice big lounge through there.
0:03:29 > 0:03:31Kitchen which is fairly small,
0:03:31 > 0:03:34but you'd expect to see that in a house of this age.
0:03:34 > 0:03:37And a very lilac sitting room.
0:03:37 > 0:03:40My gosh, such a purple space!
0:03:40 > 0:03:42So, obviously, you know, you need to redecorate here.
0:03:42 > 0:03:46There are polystyrene tiles everywhere in this house,
0:03:46 > 0:03:48a bit of a dated fireplace over here.
0:03:48 > 0:03:50You probably want to change that.
0:03:50 > 0:03:54You've got double-glazed double doors leading out to what's a very,
0:03:54 > 0:03:56very pretty back garden.
0:03:56 > 0:03:58And quite a lot of space in there.
0:03:58 > 0:04:01So, some things to consider with this one, but I'd first of all
0:04:01 > 0:04:05really look into why the floors seem to go like that.
0:04:10 > 0:04:12# Slide away
0:04:12 > 0:04:15# And give it all you've got
0:04:15 > 0:04:17# My today
0:04:17 > 0:04:20# Fell in from the top... #
0:04:20 > 0:04:23'These telltale cracks and leaning walls
0:04:23 > 0:04:25'are common signs of subsidence,
0:04:25 > 0:04:28'which is enough to give anyone that sinking feeling.'
0:04:29 > 0:04:32'Looking on the bright side, though, it's a spacious house,
0:04:32 > 0:04:36'and there is plenty of scope to extend into the expansive garden
0:04:36 > 0:04:39'if you were to knock down or incorporate the garage.
0:04:39 > 0:04:41'But let's not get ahead of ourselves.'
0:04:43 > 0:04:45OK, so back to the wonkiness of this house.
0:04:45 > 0:04:47And we're going to head over to the coat cupboard,
0:04:47 > 0:04:51not to show you what's inside - coats, jackets - no.
0:04:51 > 0:04:53Take a look at this.
0:04:53 > 0:04:57Look at that crack.
0:04:57 > 0:04:58Wow. That's... that's quite impressive.
0:04:58 > 0:05:01It goes on all the way up there as well.
0:05:01 > 0:05:04And they do say if you can fit your hand inside -
0:05:04 > 0:05:08look, I can literally fit my hand between the bricks in there -
0:05:08 > 0:05:09it's doubly, triply serious.
0:05:09 > 0:05:13So, a lot of money is going to have to be spent to rectify that.
0:05:13 > 0:05:17Subsidence is definitely something to worry about here.
0:05:17 > 0:05:19Good luck, whoever takes this property on.
0:05:21 > 0:05:24'Unfortunately the signs of subsidence are evident across
0:05:24 > 0:05:26'all three bedrooms upstairs.
0:05:26 > 0:05:28'But there are ways to fix the problem.'
0:05:30 > 0:05:33'Underpinning - which means strengthening the foundations -
0:05:33 > 0:05:37'was traditionally done by hand, digging out underneath of the house
0:05:37 > 0:05:39'and filling in with concrete.
0:05:39 > 0:05:42'But, thankfully there are now alternative methods available.'
0:05:47 > 0:05:51Now, subsidence is usually caused by soil shrinkage.
0:05:51 > 0:05:53And often, well, that's because the trees
0:05:53 > 0:05:55and the shrubs suck out moisture.
0:05:55 > 0:05:59Now, just have a look at all the trees and foliage, all the way here,
0:05:59 > 0:06:02you've got a big tree down the end there. You've got all of this.
0:06:02 > 0:06:06I mean, look at this - the pavement is cracked so close to the house,
0:06:06 > 0:06:07it's a bit of a worry.
0:06:07 > 0:06:12Now, I'd say this might all be the cause of the movement here,
0:06:12 > 0:06:16but first things first, I would get an expert to check this out
0:06:16 > 0:06:17and give a firm diagnosis.
0:06:18 > 0:06:22# It just depends how close to ground level you are... #
0:06:24 > 0:06:27'So, just how worried should you be about subsidence?
0:06:28 > 0:06:31'We asked an agent from the auction house that sold the property
0:06:31 > 0:06:37'what she thought of the issue on this house guided at ?350,000 plus.'
0:06:37 > 0:06:40There are some cracks in the property, it does look a little bit
0:06:40 > 0:06:44worrying, I would suggest looking a bit deeper into that.
0:06:44 > 0:06:47'Assuming the skewwhiff semi is sorted,
0:06:47 > 0:06:50'what other possibilities are there for this property?'
0:06:51 > 0:06:53Downstairs you could do a rear extension,
0:06:53 > 0:06:55have a really lovely open-plan kitchen,
0:06:55 > 0:06:58living area and still have ample space in the garden.
0:06:58 > 0:07:01Upstairs, definitely enough room for a loft conversion.
0:07:01 > 0:07:04I would only recommend to do the extensions
0:07:04 > 0:07:07if the family was going to stay here and enjoy it.
0:07:07 > 0:07:10If it's for a quick turnover to make a bit of money on the property,
0:07:10 > 0:07:12I don't think that would benefit,
0:07:12 > 0:07:15and then they'd make that extra cost back on the price.
0:07:15 > 0:07:19'While the cost of extending might not be worth it for an investor,
0:07:19 > 0:07:22'just what kind of price could you achieve for this house
0:07:22 > 0:07:24'as a three-bed and as a four-bed?'
0:07:26 > 0:07:28'I would say, once renovated as a three-bed,
0:07:28 > 0:07:33'you'd be looking somewhere between ?430,000 to ?450,000.'
0:07:33 > 0:07:35If you were to extend the property into a four-bed,
0:07:35 > 0:07:39you would be looking at around ?460,000.
0:07:41 > 0:07:43Although it could be really lovely,
0:07:43 > 0:07:46at the moment this is a house with some serious issues.
0:07:46 > 0:07:49I just hope it fell into the hands of somebody, well,
0:07:49 > 0:07:51with some experience.
0:07:51 > 0:07:54Let's find out who that was when it went under the hammer.
0:07:57 > 0:07:59AUCTIONEER: Two-floor, semidetached house.
0:07:59 > 0:08:00As you see it in your catalogues,
0:08:00 > 0:08:02no announcements or amendments on this one,
0:08:02 > 0:08:05so I'll bring it straight in at 350, shall I?
0:08:05 > 0:08:06Thank you, they were just first.
0:08:06 > 0:08:12OK, 352, 355, 357, 360.
0:08:12 > 0:08:14'There were some familiar faces in the room,
0:08:14 > 0:08:17'and the bidding was off to a steady start.
0:08:17 > 0:08:20'We rejoin the action at 385,000.'
0:08:22 > 0:08:23385?
0:08:23 > 0:08:25385, 386? 387?
0:08:27 > 0:08:31It's going to go, and it's going at 386 now, for the first,
0:08:31 > 0:08:34at 386 for the second,
0:08:34 > 0:08:37third, 387, 388,
0:08:37 > 0:08:38389?
0:08:40 > 0:08:41It's now at the front.
0:08:41 > 0:08:44Yes, out? 388 for the first,
0:08:44 > 0:08:47388 for the second,
0:08:47 > 0:08:49third, last chance.
0:08:49 > 0:08:53GAVEL BANGS Yours, sir, at ?388,000, well done.
0:08:53 > 0:08:58'Familiar faces and successful bidders paying 388 grand for the lot
0:08:58 > 0:09:02'were professional property developers Chris and Pauline.
0:09:02 > 0:09:05'This will be the husband-and-wife team's fourth time
0:09:05 > 0:09:08'on Homes Under The Hammer. We most recently featured
0:09:08 > 0:09:10'their fabulous property in Selhurst.
0:09:12 > 0:09:16'Lucy caught up with them once more while daughter Molly was at school.'
0:09:17 > 0:09:19Pauline and Chris, not you two again!
0:09:19 > 0:09:21SHE LAUGHS
0:09:21 > 0:09:23So, come on, whose fault is this one?
0:09:23 > 0:09:26Totally his, I haven't even... I haven't viewed it.
0:09:26 > 0:09:28I only saw it today for the first time.
0:09:28 > 0:09:30So, you left it all to your dear husband.
0:09:30 > 0:09:31Yeah. Tell me the story.
0:09:31 > 0:09:34We'd gone to France skiing over Easter, came back,
0:09:34 > 0:09:36I took Molly up to Manchester to stay with my sister,
0:09:36 > 0:09:41and he went to viewings and decided that it was just a wee crack
0:09:41 > 0:09:44in the house, there wasn't... It was nothing to be worried about,
0:09:44 > 0:09:45just a wee...
0:09:45 > 0:09:49I thought a bit of Polyfilla will fix... Hairline, hairline crack.
0:09:49 > 0:09:51Anyway, I come in here, it's like the San Andreas Fault.
0:09:53 > 0:09:57'OK, a wee crack, so how bad is the wee bit of subsidence?'
0:09:59 > 0:10:04It drops by about five centimetres or so on the left-hand side.
0:10:04 > 0:10:05Really, it's not a big deal.
0:10:05 > 0:10:09OK, right, let's have a big meaty chat about this.
0:10:09 > 0:10:12So, I'm with you on this one, Pauline.
0:10:12 > 0:10:14I was a bit shocked, I was like, "Oh, bump!
0:10:14 > 0:10:16"This house really leans to the right."
0:10:16 > 0:10:18Yeah. So, what do you know about subsidence?
0:10:18 > 0:10:21Do you think it is, are you worried and surely you are going to need to
0:10:21 > 0:10:23get somebody around to have a look at this?
0:10:23 > 0:10:26Yeah, I mean, for sure we'll get a professional company to sort the
0:10:26 > 0:10:29subsidence out, that's number one job.
0:10:29 > 0:10:31That gets fixed and then everything else goes around that.
0:10:31 > 0:10:35But it is just a problem that needs fixing.
0:10:35 > 0:10:37I mean, obviously with your repairs,
0:10:37 > 0:10:39it's not going to prop the house back up again.
0:10:39 > 0:10:43Well, the subsidence firm we're looking at, injects this foam
0:10:43 > 0:10:44underneath the foundation
0:10:44 > 0:10:46and it has got the potential to lift it up a bit.
0:10:46 > 0:10:49Expanding. Maybe not five centimetres that we've dropped.
0:10:49 > 0:10:53It's like expanding foam, but instead of being soft,
0:10:53 > 0:10:54it sets like rock.
0:10:54 > 0:10:57So, we're going to kind of inject synthetic rock underneath
0:10:57 > 0:11:01the foundations, and it does have the potential to lift it up a bit.
0:11:01 > 0:11:02'Whatever method they use,
0:11:02 > 0:11:07'it will eat up a fair portion of their ?120,000 to ?150,000 budget.
0:11:07 > 0:11:09'And while it's a decent figure,
0:11:09 > 0:11:12'they are planning to extend at the rear of the property
0:11:12 > 0:11:15'and up into the loft, creating a fourth bedroom with en suite.'
0:11:17 > 0:11:21'There is a lot to do in their 9-12 month timescale,
0:11:21 > 0:11:24'so they based their plans on a neighbouring property.
0:11:24 > 0:11:27'In fact, they even have the same architect.
0:11:27 > 0:11:30'And while they will get builders in for the major works,
0:11:30 > 0:11:33'Pauline and Chris are pretty handy themselves.'
0:11:34 > 0:11:38These polystyrene tiles have got my name written all over them.
0:11:38 > 0:11:40Yes, get rid of them.
0:11:40 > 0:11:42All throughout the whole house,
0:11:42 > 0:11:46and all the wallpaper and stuff I will be chivvying off, I think.
0:11:46 > 0:11:49We'll see how the house is by the time we finish,
0:11:49 > 0:11:53and then we'll think about colours, but all will be nice and neutral,
0:11:53 > 0:11:55nothing garish cos that won't be allowed.
0:11:55 > 0:11:59You know, there'll be nice greys and greens.
0:11:59 > 0:12:01Green's the new grey this year, apparently.
0:12:01 > 0:12:02Green is the new grey,
0:12:02 > 0:12:05so are we going to be seeing some greens poking through the grey?
0:12:05 > 0:12:07Oh, yeah, probably, yeah.
0:12:07 > 0:12:09Fabulous. Totally up my street.
0:12:09 > 0:12:12And you're here every day obviously doing all the work.
0:12:12 > 0:12:15I do a lot, I'm more at the start.
0:12:15 > 0:12:18I'm good for demolition, but I've got no finishing skills,
0:12:18 > 0:12:21so once we get to that point, then it's over to the builders
0:12:21 > 0:12:23and they do all the plastering and painting, and...
0:12:23 > 0:12:24So, working together as a team
0:12:24 > 0:12:27is really working out for you, isn't it?
0:12:27 > 0:12:32Well, you know, it's, like, we get on each other's nerves occasionally.
0:12:32 > 0:12:35You know, we have little squabbles over tiles,
0:12:35 > 0:12:39and we don't speak for a night or so, and then we compromise.
0:12:39 > 0:12:42I always go too expensive. And who normally gets their way?
0:12:42 > 0:12:43I do, of course.
0:12:43 > 0:12:46Goes without saying, I'm in charge.
0:12:46 > 0:12:48Guys, I'm so excited,
0:12:48 > 0:12:52I'm desperate to find out the outcome for the subsidence,
0:12:52 > 0:12:53but good luck, both of you.
0:12:53 > 0:12:56And I'm really looking forward to seeing how you do this place.
0:12:56 > 0:12:58Lovely to see you again, so nice, thank you.
0:12:58 > 0:12:59Thank you, Lucy.
0:13:01 > 0:13:04Well, Pauline and Chris, we meet again.
0:13:04 > 0:13:07They are becoming Homes Under The Hammer frequent flyers.
0:13:07 > 0:13:10However, they've taken on something bigger and significantly more
0:13:10 > 0:13:15challenging. Will their property developing success story continue
0:13:15 > 0:13:18as they tackle subsidence and extensions?
0:13:18 > 0:13:21Join me later on in the programme and you can find out
0:13:21 > 0:13:22how the couple get on.
0:13:28 > 0:13:30'It's back to the city of Derby for me -
0:13:30 > 0:13:32'an area we've visited regularly over the years
0:13:32 > 0:13:34'on Homes Under The Hammer.'
0:13:35 > 0:13:38'There's a lot going on here, plenty of amenities,
0:13:38 > 0:13:42'great transport links as well as historic buildings.
0:13:42 > 0:13:44'There's often an interesting property investment
0:13:44 > 0:13:45'to be found, too.'
0:13:47 > 0:13:51So, just a ten-minute walk away from Derby town centre on this very busy
0:13:51 > 0:13:54main road, which is a mix of residential and commercial,
0:13:54 > 0:13:56is the property I'm here to see.
0:13:56 > 0:13:59And it's a commercial unit that I'm looking at today.
0:13:59 > 0:14:02Part of it is being rented out to the bookies,
0:14:02 > 0:14:05the other half is just here, and that's what I'm here to see.
0:14:05 > 0:14:09Has a guide price of ?150,000.
0:14:09 > 0:14:11Is it going to be worth the gamble? Let's take a look.
0:14:15 > 0:14:17Wow! HE LAUGHS
0:14:17 > 0:14:19Look at the size of this place.
0:14:19 > 0:14:22And the condition it is in as well.
0:14:22 > 0:14:25Yes, you might have to put a lick of paint up and change the flooring
0:14:25 > 0:14:28in here, but it is in very good condition.
0:14:28 > 0:14:31And you have got to think as well, the location...
0:14:31 > 0:14:35It's incredibly busy out there, the footfall is superb.
0:14:35 > 0:14:37Through here, you've got...
0:14:38 > 0:14:42..another room just here. Another decent-sized room, so straightaway,
0:14:42 > 0:14:46I'm thinking you could make that a separate unit to this one,
0:14:46 > 0:14:49close the door, block it off, brick it up, do what you want.
0:14:49 > 0:14:53But when it comes to making profit, that could be making profit,
0:14:53 > 0:14:54this could be making profit
0:14:54 > 0:14:59and the bookies already are paying ?6,000 a year.
0:14:59 > 0:15:01Imagine that kind of money coming in.
0:15:01 > 0:15:03There is definitely profit to be made here.
0:15:06 > 0:15:10# Got brass in pocket... #
0:15:11 > 0:15:14'Splitting these premises further would definitely give you more
0:15:14 > 0:15:18'bang for your buck and there's loads of options here.
0:15:18 > 0:15:20'An office, a salon, a restaurant...
0:15:21 > 0:15:24'Just remember, different types of businesses
0:15:24 > 0:15:26'have different use classes.
0:15:26 > 0:15:29'Change of use sometimes requires planning permission,
0:15:29 > 0:15:33'so always best to check with your local planners before you buy,
0:15:33 > 0:15:36'or maybe you could do something entirely different.'
0:15:39 > 0:15:40Having walked around the area,
0:15:40 > 0:15:43I have noticed that whether it is residential or commercial,
0:15:43 > 0:15:45most of the buildings are on two floors,
0:15:45 > 0:15:48which says to me that this place
0:15:48 > 0:15:50has the potential to be built on as well.
0:15:50 > 0:15:52Now, you could put commercial units up there,
0:15:52 > 0:15:54or you could put residential.
0:15:54 > 0:15:56Now, if you were going to go down the residential route,
0:15:56 > 0:15:58there is a lot of red tape to go through.
0:15:58 > 0:16:01Planning, which you might not even get in the first instance,
0:16:01 > 0:16:04cos there is not enough parking.
0:16:04 > 0:16:06Also, you have got to think about lenders.
0:16:06 > 0:16:10Lenders are very reluctant to lend for residential above,
0:16:10 > 0:16:14commercial units below. So there are lots of things to think about.
0:16:14 > 0:16:18What I would suggest is just do a little bit of research.
0:16:18 > 0:16:20# Every time it rains
0:16:20 > 0:16:24# It rains pennies from heaven. #
0:16:24 > 0:16:25'I love that tune.
0:16:25 > 0:16:28'Anyway, to find out if my idea was ever likely to fly,
0:16:28 > 0:16:32'we have asked along an agent from the auction house that sold it.
0:16:32 > 0:16:35'First, what does he think of the retail space?'
0:16:35 > 0:16:39Impressed by the 4,000 square feet of the two retail units,
0:16:39 > 0:16:43and its prominent position on the high street.
0:16:43 > 0:16:44'And what about going up?
0:16:44 > 0:16:46'Is there potential to expand?'
0:16:47 > 0:16:50I feel there could be an option for the owner to maybe develop some
0:16:50 > 0:16:52apartments above, but that would always be usual,
0:16:52 > 0:16:54subject to planning consent.
0:16:55 > 0:16:59'Let's get some figures for the premises as it stands currently.
0:16:59 > 0:17:02'What could be the rental potential here?'
0:17:02 > 0:17:05Probably likely to achieve a combined rental of probably
0:17:05 > 0:17:09in the region of ?15,000 to ?16,000.
0:17:09 > 0:17:11'And if the new buyer decided to sell on,
0:17:11 > 0:17:14'how much could these units fetch on the resale market?'
0:17:14 > 0:17:16If they were to sell the whole lot,
0:17:16 > 0:17:20with a joined combined rent for the three units,
0:17:20 > 0:17:24I would feel the property is likely to achieve in excess of ?200,000.
0:17:26 > 0:17:29This is a good size commercial unit.
0:17:29 > 0:17:31Part of it is already being let out to the bookies,
0:17:31 > 0:17:34so if it is working for you, I'd leave that alone.
0:17:34 > 0:17:38This part here, for me, is crying out to be in two parts.
0:17:38 > 0:17:40I've also looked around the area,
0:17:40 > 0:17:43and I've seen that some of the buildings have got another floor,
0:17:43 > 0:17:46so the potential to develop this place further is great.
0:17:46 > 0:17:49It is a really good project to get hold of.
0:17:49 > 0:17:52Let's see who saw its potential when it went under the hammer.
0:17:53 > 0:17:56AUCTIONEER: Two retail units, part let, part vacant.
0:17:56 > 0:17:58Start me where you like with this one.
0:17:58 > 0:18:00155?
0:18:00 > 0:18:02Who's got 150?
0:18:02 > 0:18:04145 to start me?
0:18:04 > 0:18:06145?
0:18:06 > 0:18:0840? 140, thank you.
0:18:08 > 0:18:10?140,000 is the opening bid.
0:18:11 > 0:18:13'This lot was slow out of the blocks,
0:18:13 > 0:18:16'but the price did creep higher, with two bidders -
0:18:16 > 0:18:18'one in the room and one on the phone -
0:18:18 > 0:18:20'both determined to come out on top.
0:18:22 > 0:18:26'We rejoined with the latest bid at 175 grand.'
0:18:26 > 0:18:28175?
0:18:28 > 0:18:30175.
0:18:31 > 0:18:33175, 176.
0:18:34 > 0:18:37176,000.
0:18:37 > 0:18:38177.
0:18:38 > 0:18:39Over to you.
0:18:39 > 0:18:41177.
0:18:41 > 0:18:43178?
0:18:43 > 0:18:45?177,000.
0:18:45 > 0:18:50Is that definite? Once, twice, third opportunity...
0:18:50 > 0:18:52GAVEL BANGS Sold at 177, thank you.
0:18:57 > 0:19:02'It was Jaz with that successful bid of ?177,000.
0:19:02 > 0:19:04'Together with brother Manny,
0:19:04 > 0:19:07'they run a small chain of funeral directors around the Midlands,
0:19:07 > 0:19:09'and this was their fourth property.
0:19:09 > 0:19:14'We caught up with them for a chat to find out more.'
0:19:14 > 0:19:16Jaz, nice to meet you. And yourself. Manny, same to you.
0:19:16 > 0:19:18Congratulations to you both.
0:19:18 > 0:19:20Thank you very much. Tell me why this property, then.
0:19:20 > 0:19:23I think the demographics, location etc,
0:19:23 > 0:19:26fits in with our business model, how we're currently going.
0:19:26 > 0:19:27More so the location.
0:19:27 > 0:19:30OK. Was it this size of property you were looking for?
0:19:30 > 0:19:32We were looking for something a bit smaller but...
0:19:32 > 0:19:35we got something a bit bigger, value for money, really.
0:19:35 > 0:19:37And you happy with what you paid for it?
0:19:37 > 0:19:39Definitely. I think we definitely got value for money.
0:19:39 > 0:19:42Yeah, there is a chance for some decent income here, isn't there?
0:19:42 > 0:19:45Cos you have already got... Part of it is already rented, isn't it?
0:19:45 > 0:19:48Yeah, a very good tenant who are already interested in extending
0:19:48 > 0:19:50their lease, which is absolutely music to our ears.
0:19:50 > 0:19:52Oh, well done, well done!
0:19:52 > 0:19:54Have you had a chat with them?
0:19:54 > 0:19:56Yes, we've had an initial chat,
0:19:56 > 0:19:58talking figures and lengths of contracts,
0:19:58 > 0:20:00and they are happy to stay.
0:20:00 > 0:20:02We just need to get that contract signed now!
0:20:02 > 0:20:03THEY LAUGH
0:20:03 > 0:20:06# Signed on the dotted line
0:20:06 > 0:20:09# It's gonna work out fine. #
0:20:10 > 0:20:12'That is an excellent start.
0:20:12 > 0:20:14'With some guaranteed long-term rental coming in,
0:20:14 > 0:20:16'the brothers can concentrate
0:20:16 > 0:20:17'on getting the business up and running.'
0:20:19 > 0:20:22So what special requirements are you going to have to put in here
0:20:22 > 0:20:24for a funeral home? Within this space that we are in now,
0:20:24 > 0:20:29we are hopefully splitting into smaller rooms, so office space,
0:20:29 > 0:20:30arrangement areas.
0:20:30 > 0:20:33We wish to get a mortuary in this space also.
0:20:33 > 0:20:35And then we've also got the back unit.
0:20:35 > 0:20:38That is where the refrigeration units, etc, will be going,
0:20:38 > 0:20:40and a mortuary space for the staff.
0:20:40 > 0:20:43There will be two kind of waiting areas, reception areas
0:20:43 > 0:20:46within this space, and chapels of rest.
0:20:46 > 0:20:49We have already got, like, a split wall in between the two units.
0:20:49 > 0:20:53We will put a shop front in and make that another rental unit.
0:20:53 > 0:20:56OK, so tell me what kind of commercial units are you going
0:20:56 > 0:21:00to put on the other side of the building? Well, hopefully,
0:21:00 > 0:21:02we've got a couple of interested parties that want to come and look
0:21:02 > 0:21:07at it. I think for the near future, probably section it off,
0:21:07 > 0:21:10get some interested parties in, and see what they want to do with it.
0:21:10 > 0:21:13And how much is all this going to cost, Manny?
0:21:13 > 0:21:15Well, it's... Big question! Big question.
0:21:15 > 0:21:17We are thinking around about ?60,000.
0:21:17 > 0:21:19OK. That is what we are budgeting.
0:21:19 > 0:21:22But we are going to aim to go way under that!
0:21:22 > 0:21:24THEY LAUGH
0:21:24 > 0:21:29We have got a ?60,000 budget, and we will see how it goes.
0:21:29 > 0:21:31Your timescale - how long is it going to take?
0:21:31 > 0:21:35Well, we're hoping five months, we can get it turned over,
0:21:35 > 0:21:38which I think we should be able to do,
0:21:38 > 0:21:40I say comfortably, but you never know.
0:21:40 > 0:21:41But comfortably within five months.
0:21:41 > 0:21:44OK, and who's going to do the work for you?
0:21:44 > 0:21:46What we'd like to do is use local tradesmen,
0:21:46 > 0:21:48so people from the local area.
0:21:48 > 0:21:51I think that is part of our business model as well.
0:21:51 > 0:21:52The areas that we go into,
0:21:52 > 0:21:55hopefully we can give back into that economy, of that city,
0:21:55 > 0:21:58so we will be using local tradesmen around Derby.
0:21:58 > 0:22:00That is good. Keep the money in the area. Exactly.
0:22:00 > 0:22:03So, have you thought about building up?
0:22:03 > 0:22:07Yes, so when we'd actually seen the site and we looked around the local
0:22:07 > 0:22:09streets, everybody's got two storeys,
0:22:09 > 0:22:12so I think definitely got potential to go up.
0:22:12 > 0:22:16And what would you want to put up there if that was the case?
0:22:16 > 0:22:20We were thinking maybe residential flats,
0:22:20 > 0:22:24we might even go to make an office accommodation upstairs
0:22:24 > 0:22:26for our will side of the business.
0:22:26 > 0:22:28We do wills and probates for our legal sector,
0:22:28 > 0:22:31to maybe take that upstairs, so maybe move that upstairs.
0:22:31 > 0:22:34That would nudge the budget up slightly, wouldn't it?
0:22:34 > 0:22:35Oh, substantially, yes!
0:22:35 > 0:22:39We will get downstairs done first, and then have a cup of tea
0:22:39 > 0:22:42and a break, and then we will see what happens upstairs!
0:22:42 > 0:22:44It is nice to have the options, though, Manny, isn't it?
0:22:44 > 0:22:47Definitely, and it will add value to the property as well.
0:22:51 > 0:22:55'The funeral directors business was set up in 2013,
0:22:55 > 0:22:59'and mainly serves the Asian community.
0:22:59 > 0:23:01'I was intrigued to find out how they started.'
0:23:01 > 0:23:05It started maybe ten years ago when my grandad passed away.
0:23:06 > 0:23:10And at the time, we were not 100% satisfied with the level of service
0:23:10 > 0:23:15that we received, so that kind of put a seed in my mind.
0:23:15 > 0:23:16Once I had finished university,
0:23:16 > 0:23:19and I had come out and had a bit of thinking time,
0:23:19 > 0:23:22and my brother as well, we had a passion
0:23:22 > 0:23:24for helping the community, helping people,
0:23:24 > 0:23:27and this kind of lined in quite well.
0:23:27 > 0:23:29And an opportunity came up,
0:23:29 > 0:23:33and we almost fell into the business rather than...
0:23:33 > 0:23:35It kind of chose us.
0:23:35 > 0:23:39'Jaz and Manny have a calling at helping others in difficult times.
0:23:39 > 0:23:42'So what is it they want to achieve with this property?'
0:23:44 > 0:23:47We want a place where, if somebody walks through the door,
0:23:47 > 0:23:49they have that peace of mind, reassurance,
0:23:49 > 0:23:51that they've come into this place and they can grieve properly. Yes.
0:23:51 > 0:23:53So we've taken that all into context,
0:23:53 > 0:23:57and we are trying to build a facility here for the local people
0:23:57 > 0:24:00of Derby, so at their point of
0:24:00 > 0:24:03bereavement, they can come in here and feel reassured.
0:24:03 > 0:24:05Good on you. I wish you both good luck.
0:24:05 > 0:24:07Jaz, good luck, pal.
0:24:07 > 0:24:09Good luck to you. Manny, good luck. Thank you.
0:24:12 > 0:24:15So, Jaz and Manny have bought this place for a specific reason -
0:24:15 > 0:24:18for their business - they're funeral directors.
0:24:18 > 0:24:21I do like that they are going to be renting out the other parts
0:24:21 > 0:24:22of the building, and I also like
0:24:22 > 0:24:25that they are going to be using local tradesmen.
0:24:25 > 0:24:28?60,000 and five months.
0:24:28 > 0:24:30You can find out how they do later in the programme.
0:24:32 > 0:24:35'Still to come, this ground-floor flat
0:24:35 > 0:24:38'in Telford is anything but a-DOOR-able.'
0:24:38 > 0:24:40I think it is fair to say you might need a new door.
0:24:40 > 0:24:41It is a bit of a hotch-potch.
0:24:43 > 0:24:46'And we will find out if Jaz and Manny achieve their goal.'
0:24:46 > 0:24:50The biggest hurdle that we found was trying to juggle our work along
0:24:50 > 0:24:51with managing this project.
0:24:55 > 0:24:57'Back now to the small town of Coulsdon,
0:24:57 > 0:25:00'in the far southern reaches of the Greater London boundary,
0:25:00 > 0:25:03'where Lucy saw this 1930s semi.'
0:25:05 > 0:25:07'First impressions were so-so,
0:25:07 > 0:25:11'but inside the house, it was more seesaw.'
0:25:11 > 0:25:15Look how the window is on the slant, and even walking in here,
0:25:15 > 0:25:18you feel a little bit like you just want to keep doing that.
0:25:19 > 0:25:22'All the signs pointed to subsidence,
0:25:22 > 0:25:24'but if you could see past the problems,
0:25:24 > 0:25:28'there was a lot of potential in this spacious 1930s accommodation,
0:25:28 > 0:25:31'as well as a generous garden with scope to extend.
0:25:32 > 0:25:35'But upstairs, try as you might to forget,
0:25:35 > 0:25:37'there was no getting away from those cracks.'
0:25:39 > 0:25:42Look at that crack!
0:25:42 > 0:25:46And they do say, if you can fit your hand inside -
0:25:46 > 0:25:49look, I can literally fit my hand between the bricks in there -
0:25:49 > 0:25:51it is doubly, triply serious.
0:25:52 > 0:25:54'It was no small task,
0:25:54 > 0:25:57'but that did not put off professional property developers,
0:25:57 > 0:26:00'and husband and wife, Chris and Pauline,
0:26:00 > 0:26:03'who bought the house for 388 grand.
0:26:03 > 0:26:05'Well, it didn't put Chris off, anyway.'
0:26:06 > 0:26:09We had gone to France skiing over Easter, came back,
0:26:09 > 0:26:12I took Molly up to Manchester to stay with my sister,
0:26:12 > 0:26:16and he went to viewings and decided that it was just a wee crack
0:26:16 > 0:26:18in the house, it was nothing to be worried about.
0:26:18 > 0:26:20It was just a wee...
0:26:20 > 0:26:24I thought a bit of Polyfilla will fix... ..hairline crack!
0:26:24 > 0:26:26Anyway, I come in here, it's like the San Andreas Fault.
0:26:28 > 0:26:30'No matter whose FAULT it was,
0:26:30 > 0:26:33'it was time to get - dare I say it? - cracking.
0:26:33 > 0:26:38'And while the couple had a healthy budget of 120,000 to 150,000,
0:26:38 > 0:26:41'they also had to cover an extension and loft conversion,
0:26:41 > 0:26:44'all within a timescale of 9 to 12 months.'
0:26:46 > 0:26:48'Well, one year on, we are back.'
0:26:50 > 0:26:54'That is a great start, that massive tree has been cleared,
0:26:54 > 0:26:57'and there is now a tiered garden with plenty of parking.'
0:27:00 > 0:27:04'What's more, inside is looking positively smashing.'
0:27:08 > 0:27:12'Chris and Pauline's builders have knocked through the former lounge,
0:27:12 > 0:27:13'and added an extension
0:27:13 > 0:27:17'to make an absolutely stunning family living space.
0:27:18 > 0:27:19'They knocked down the garage,
0:27:19 > 0:27:24'and in its place is a generous utility room and a handy WC.'
0:27:27 > 0:27:29'As for the front, well, it's looking just as chic.
0:27:29 > 0:27:31'And of course, no more cracks.'
0:27:33 > 0:27:37'Let's hope the subsidence wasn't too tricky to fix.'
0:27:37 > 0:27:40Originally, we thought it was probably a subsidence issue related
0:27:40 > 0:27:41to the big trees out front.
0:27:41 > 0:27:43But once we started digging up the driveway,
0:27:43 > 0:27:47we discovered the drain from the bathroom was literally disconnected
0:27:47 > 0:27:48by about that much.
0:27:48 > 0:27:51So every time they flushed the toilet or emptied the bath,
0:27:51 > 0:27:53the water washed underneath the concrete driveway.
0:27:53 > 0:27:57It washed all the soil away and just took away the foundations
0:27:57 > 0:27:59of the house, so it slipped down a little bit.
0:27:59 > 0:28:01So as soon as we reconnected it,
0:28:01 > 0:28:05put in a bit of support under all the walls...
0:28:06 > 0:28:08..no problem any more.
0:28:08 > 0:28:10'Well, subsidence can have many causes
0:28:10 > 0:28:13'and drains are common culprits.
0:28:13 > 0:28:16'The couple used the resin injection technique
0:28:16 > 0:28:19'to strengthen the house's foundations.
0:28:19 > 0:28:22'They made good on their plans to extend and level the house,
0:28:22 > 0:28:24'but did they manage that loft extension?'
0:28:27 > 0:28:30'Well, what did you expect? Of course they did.
0:28:30 > 0:28:34'And marvellous it is, too, complete with en-suite shower room.'
0:28:39 > 0:28:41'The rest of the bedrooms are just as stylish,
0:28:41 > 0:28:44'thanks to Pauline's interior decor skills.
0:28:45 > 0:28:49'Meanwhile, Chris was project manager, and tackled the rewire,
0:28:49 > 0:28:53'but had the work signed off by a registered sparky,
0:28:53 > 0:28:54'which, do remember, is the law.
0:28:57 > 0:29:00'They are a perfect team, but did everything else go smoothly?'
0:29:01 > 0:29:03The worst was planning.
0:29:03 > 0:29:05Planning was the biggest problem, wasn't it?
0:29:05 > 0:29:07Yeah, planning delayed us.
0:29:07 > 0:29:11The brief I gave myself for the house was to try and match next door
0:29:11 > 0:29:14as much as possible. We even had the same architect.
0:29:14 > 0:29:17All he had to do was take his plans, turn them over, and go,
0:29:17 > 0:29:18"There you go, that's your plans."
0:29:18 > 0:29:21But when we put them in to the planning permission,
0:29:21 > 0:29:23we got turned down.
0:29:23 > 0:29:25So we had to appeal the planning permission,
0:29:25 > 0:29:27so six weeks for planning permission,
0:29:27 > 0:29:29then the appeal took about 14 weeks.
0:29:31 > 0:29:34And then, yeah, we finally got approved on the appeal,
0:29:34 > 0:29:40but, as I say, the 14-week delay was not a good thing.
0:29:40 > 0:29:42We just plodded along the whole project.
0:29:42 > 0:29:46'Despite the delays with planning, they came in on schedule,
0:29:46 > 0:29:50'but it did contribute to an overspend of ?15,000.
0:29:50 > 0:29:53'They spent ?165,000 overall.
0:29:53 > 0:29:56'But Chris and daughter Molly don't look too worried,
0:29:56 > 0:29:59'so what is the best bit of this fabulous house?'
0:30:01 > 0:30:02It's over...
0:30:04 > 0:30:08..I think. It has been going on for so long and it was so tedious, but,
0:30:08 > 0:30:10you know, now, looking at it, you think,
0:30:10 > 0:30:12"Yeah, it is a great family house now."
0:30:12 > 0:30:14I would live in it, and that is the benchmark.
0:30:14 > 0:30:16"Would I live in it?" "Yeah."
0:30:16 > 0:30:18And my daughter would definitely live in it, she loves it,
0:30:18 > 0:30:19she wants to move in.
0:30:21 > 0:30:23'Well, join the queue, Molly,
0:30:23 > 0:30:26'because I think this house could prove very popular indeed.
0:30:26 > 0:30:28'Let's see what two local estate agents thought
0:30:28 > 0:30:32'of Chris and Pauline's ?553,000 investment,
0:30:32 > 0:30:35'starting with the agent who saw it prior to work starting.'
0:30:38 > 0:30:41I think the property is fantastic.
0:30:41 > 0:30:42Really got the wow factor.
0:30:42 > 0:30:46I walked in, and I just thought, "Oh, my gosh, it is beautiful."
0:30:46 > 0:30:49They have done a stunning job, to be honest with you.
0:30:49 > 0:30:52And I do not often say that in property terms.
0:30:52 > 0:30:56They really have done a high-end finish to it, above average.
0:30:56 > 0:30:59The only negative I would say
0:30:59 > 0:31:01is probably that it is based on a main road.
0:31:01 > 0:31:04Now, some people will like that, and some people, it won't bother them,
0:31:04 > 0:31:07but other people it will, but I think, as soon as they step through
0:31:07 > 0:31:10the front door, and see what the property has to offer,
0:31:10 > 0:31:11they are going to fall in love.
0:31:11 > 0:31:14'But will Chris and Pauline love the values?
0:31:14 > 0:31:20'After all, they have invested ?553,000.'
0:31:20 > 0:31:24Because of the standard of finish and the good accommodation,
0:31:24 > 0:31:27I would put it in a price range
0:31:27 > 0:31:31of ?625,000 to ?650,000.
0:31:31 > 0:31:32I think, resale value,
0:31:32 > 0:31:38you will be looking at somewhere between ?625,000 to ?650,000.
0:31:38 > 0:31:40That's all right. Yeah! Yeah, that's all right, actually,
0:31:40 > 0:31:43I'm pleased with that. 'No wonder Pauline is pleased.
0:31:43 > 0:31:47'That is a potential profit of ?97,000, minus taxes and fees,
0:31:47 > 0:31:48'which will come in handy,
0:31:48 > 0:31:51'as they have already bought their next project.
0:31:51 > 0:31:54'So, here's to a long and happy career in developing.'
0:31:56 > 0:32:00We will do all this until Molly finishes uni, and then...
0:32:00 > 0:32:02FINISHES uni? STARTS uni! No, no, no, starts uni!
0:32:02 > 0:32:07Starts uni! And then we quit, and then we just go on holiday forever.
0:32:09 > 0:32:12Just the two of us. Yeah. No children.
0:32:18 > 0:32:22'Telford in Shropshire was built in the 1960s and '70s,
0:32:22 > 0:32:25'but it's actually named after one of my fellow Scots,
0:32:25 > 0:32:29'Thomas Telford, the renowned engineer designed roads, canals
0:32:29 > 0:32:33'and bridges, both here and in Scotland in the 18th century.'
0:32:35 > 0:32:37The property I am here to see is on this estate.
0:32:37 > 0:32:40It is three miles from the town centre,
0:32:40 > 0:32:41and it is really well serviced,
0:32:41 > 0:32:44with lots of shops and schools nearby.
0:32:44 > 0:32:49This is it, it is a one-bedroom flat with a guide price of ?34,000.
0:32:49 > 0:32:50Let's have a gander.
0:33:00 > 0:33:02OK, into the hallway.
0:33:02 > 0:33:06My initial thought is it could do with a bit of a wash.
0:33:06 > 0:33:08Sometimes that makes all the difference.
0:33:08 > 0:33:10There are loads of stains on the doors,
0:33:10 > 0:33:11and needs a good lick of paint.
0:33:11 > 0:33:14The bathroom is a decent size.
0:33:14 > 0:33:15There is no shower there.
0:33:15 > 0:33:17You would definitely need that to come out,
0:33:17 > 0:33:19so completely new bathroom,
0:33:19 > 0:33:21put your shower in the bath...
0:33:22 > 0:33:26..and then on this side, you have a decent sized bedroom,
0:33:26 > 0:33:28and your reception room - I will come to those a bit later.
0:33:28 > 0:33:32An airing cupboard at the end of the hall, OK.
0:33:32 > 0:33:35And into the kitchen, good size.
0:33:35 > 0:33:37Again, needs to come out.
0:33:37 > 0:33:41It's tired. You have got the swirls on the ceiling,
0:33:41 > 0:33:44which really tells you how long ago this was decorated.
0:33:44 > 0:33:47It was all the rage at one point, a good few decades ago -
0:33:47 > 0:33:49the textured wallpaper.
0:33:49 > 0:33:52But this kitchen strikes me as an awkward shape,
0:33:52 > 0:33:55it is like an L shape and I am thinking...
0:33:55 > 0:33:59This is a stud wall, so you have your airing cupboard in here,
0:33:59 > 0:34:03a stud wall, which means it wouldn't be too much of a job to take this
0:34:03 > 0:34:06down and open up this kitchen.
0:34:06 > 0:34:09And people do like an open-plan kitchen area.
0:34:09 > 0:34:11Yes, you would be losing a cupboard,
0:34:11 > 0:34:15but you would be gaining some really nice space.
0:34:15 > 0:34:17Often in a one-bed like this,
0:34:17 > 0:34:19there is not much potential to change anything, really,
0:34:19 > 0:34:22but there is a wee scope for potential right there.
0:34:22 > 0:34:26# This must be the kitchen of my dreams
0:34:26 > 0:34:29# Take a seat in this dream kitchen
0:34:29 > 0:34:33# You can wipe your feet and dry your hair
0:34:33 > 0:34:37# And if you make a wish in this dream kitchen... #
0:34:38 > 0:34:40I think it's fair to say you might need a new door.
0:34:40 > 0:34:44It's a bit of a hotch-potch there of holes and makeshift plasterwork.
0:34:44 > 0:34:47In our one and only bedroom, it's good to see you've got
0:34:47 > 0:34:50double glazing, central heating. It's a good size.
0:34:50 > 0:34:53So you wouldn't struggle to get everything you need in here,
0:34:53 > 0:34:54your double bed, your wardrobe.
0:34:54 > 0:34:56You've got an electric meter in your bedroom.
0:34:56 > 0:35:00You might prefer it in the hall, but I guess it is where it is.
0:35:00 > 0:35:05And then on the same side of the flat you have your reception area.
0:35:05 > 0:35:08Again, a decent size.
0:35:08 > 0:35:11And I can't see too many problems.
0:35:11 > 0:35:14Well, there is a wee spot of damp just there,
0:35:14 > 0:35:17but my guess would be that's due to bad ventilation
0:35:17 > 0:35:19and nobody living here for quite a while.
0:35:19 > 0:35:22But all in all, you have a good find here,
0:35:22 > 0:35:24if you are willing to put in a bit of graft.
0:35:24 > 0:35:26It's amazing what elbow grease can do.
0:35:26 > 0:35:29A good clean, paint, new kitchen, new bathroom,
0:35:29 > 0:35:32and, yes, you could have a solid one-bedroom flat.
0:35:35 > 0:35:39'We asked an agent from the auctioneers who sold the property -
0:35:39 > 0:35:41'guided at 34 grand - to come and give us some information
0:35:41 > 0:35:43'about the market here.'
0:35:44 > 0:35:47In terms of the area, I think you're close to all local amenities.
0:35:47 > 0:35:51You have got schools, shops, bus links, major road links.
0:35:51 > 0:35:53So you are close to everything.
0:35:53 > 0:35:57'Once refurbished, what sort of rental could this property command?'
0:35:57 > 0:36:00For the rental market, I'd probably recommend somewhere in the region of
0:36:00 > 0:36:03?395 per calendar month.
0:36:04 > 0:36:05'And on the sales market?'
0:36:06 > 0:36:10You are probably looking around ?45,000 to ?50,000.
0:36:12 > 0:36:15This is a well built one-bedroom flat,
0:36:15 > 0:36:17and it's in a really good rental area.
0:36:17 > 0:36:20So, it could be a very good investment for someone.
0:36:20 > 0:36:22Let's find out who agreed when it went under the hammer.
0:36:24 > 0:36:26AUCTIONEER: Back in Telford,
0:36:26 > 0:36:28ground floor flat with one bedroom.
0:36:28 > 0:36:3030,000, on we go.
0:36:32 > 0:36:3330,000 I am bid.
0:36:33 > 0:36:35At 30. At 30,000 I am bid.
0:36:35 > 0:36:37Is it one? At 30.
0:36:37 > 0:36:39One.
0:36:39 > 0:36:40Two. At 32.
0:36:40 > 0:36:42Three.
0:36:42 > 0:36:4434 now.
0:36:44 > 0:36:45At 33,000 for the flat...
0:36:47 > 0:36:4934?
0:36:49 > 0:36:50At 34,000.
0:36:50 > 0:36:52Is it 35?
0:36:52 > 0:36:54Bid's against you in the corner.
0:36:54 > 0:36:56I'll take a half if it will help.
0:36:56 > 0:36:5834 and a half.
0:36:58 > 0:37:0035.
0:37:00 > 0:37:02Another half at 35.
0:37:02 > 0:37:04No, he says.
0:37:04 > 0:37:06For the first time of asking at 35.
0:37:06 > 0:37:08And the second.
0:37:08 > 0:37:09All done, then.
0:37:09 > 0:37:12The third time of asking, 35,000 and selling.
0:37:12 > 0:37:13GAVEL BANGS
0:37:13 > 0:37:15Thank you, sir. Well done, you've bought it.
0:37:15 > 0:37:20'Paying just 1,000 over the guide and getting the flat for 35 grand
0:37:20 > 0:37:24'were Aidan and Ian. They each have their own property letting companies
0:37:24 > 0:37:27'but have set themselves up in a joint venture
0:37:27 > 0:37:29'to renovate properties.
0:37:29 > 0:37:31'They are familiar with this estate,
0:37:31 > 0:37:33'having bought properties here already.
0:37:33 > 0:37:36'So, time to find out what they have planned here.'
0:37:37 > 0:37:39Ian, Aidan? Aidan.
0:37:39 > 0:37:42Aidan! Pleased to meet you, Aidan. And pleased to meet you, Ian.
0:37:42 > 0:37:44Congratulations on your recent purchase.
0:37:44 > 0:37:46Now, where is that accent from?
0:37:48 > 0:37:50Dumfries and Galloway. Dumfries and Galloway!
0:37:50 > 0:37:51So what brings you down here?
0:37:51 > 0:37:55We met each other a couple of years ago and got on really well.
0:37:55 > 0:37:58Thought it'd be a good idea to bring our skills together.
0:37:58 > 0:38:00Because it sounds like you were doing pretty well doing your own
0:38:00 > 0:38:03things individually, but is part of it just, if you do get on,
0:38:03 > 0:38:06it's quite a nice thing to do together? Yeah, definitely.
0:38:06 > 0:38:09It's nice to have somebody to bounce off as well. Yeah.
0:38:09 > 0:38:11And bigger projects sometimes.
0:38:11 > 0:38:14So, what attracted you to this property?
0:38:14 > 0:38:16Had you been to see it before auction?
0:38:16 > 0:38:18No. No. No!
0:38:18 > 0:38:20We know the area. And we know the properties.
0:38:20 > 0:38:23What was your feeling when you came in for the first time?
0:38:23 > 0:38:25Because you came in as owners.
0:38:25 > 0:38:28Well, we had looked through the window, hadn't we?
0:38:28 > 0:38:33And, to be honest, we bought another two which was pretty much the same.
0:38:33 > 0:38:35Yeah. But, yeah, it's...
0:38:36 > 0:38:38..not the best. What are your plans for this?
0:38:38 > 0:38:40Is it to rent or to sell on?
0:38:41 > 0:38:43We have decided we're going to rent it out.
0:38:43 > 0:38:46So we're going to spend some money on it and rent the property out.
0:38:46 > 0:38:49Looking around, I was thinking there is a wee bit of space in the airing
0:38:49 > 0:38:53cupboard which I guess could make a little bit more room in the kitchen.
0:38:53 > 0:38:55Were you thinking along those lines?
0:38:55 > 0:38:57Yeah, I think take the wall out there.
0:38:58 > 0:39:01Maybe just put a table and chairs there.
0:39:01 > 0:39:05To make it a bit more room for a... like a little dining room area.
0:39:05 > 0:39:07Nice new kitchen. Nice new kitchen, yeah.
0:39:07 > 0:39:11Nice new bathroom. Redec, carpets, make sure the electric's OK.
0:39:11 > 0:39:13New doors. New doors.
0:39:13 > 0:39:15A nice home for somebody.
0:39:15 > 0:39:18Do you have a bit of a game plan, where you think,
0:39:18 > 0:39:20when you are at auction, "OK, that is the price,
0:39:20 > 0:39:22"I want this rental yield" -
0:39:22 > 0:39:24is that what you thought about this property?
0:39:24 > 0:39:26Yeah, we had the price in our heads.
0:39:26 > 0:39:28We were not going to go over it.
0:39:28 > 0:39:30We got it for what we wanted to pay.
0:39:30 > 0:39:34What do you plan to spend, what budget do you have?
0:39:34 > 0:39:36Three grand? Four at tops.
0:39:36 > 0:39:40Yeah. And that will get new kitchen, new bathroom?
0:39:40 > 0:39:42New bathroom. Knock the wall down.
0:39:42 > 0:39:45Redec, new carpets.
0:39:45 > 0:39:46So what is your secret,
0:39:46 > 0:39:50because that sounds like that money is going to go quite a long way?
0:39:50 > 0:39:54And I think it's interesting for anyone watching.
0:39:54 > 0:39:56How do you make your money cover all of that?
0:39:56 > 0:40:01What is the secret? Well, we shop around for kitchens
0:40:01 > 0:40:03and get the best deal.
0:40:03 > 0:40:05So, you know...
0:40:05 > 0:40:09And we've got workers that work for us, so...
0:40:09 > 0:40:11That's how we keep costs down, really.
0:40:11 > 0:40:13And do you bring...? We do it quickly. Do it quickly, yeah.
0:40:13 > 0:40:16Two to three weeks, it will be done.
0:40:16 > 0:40:17Two to three weeks? Yeah.
0:40:17 > 0:40:18That's exciting. Yeah.
0:40:18 > 0:40:22Do you have any hands-on graft yourself,
0:40:22 > 0:40:23or do you just leave it to everyone else?
0:40:23 > 0:40:27Leave it to everyone else. Yeah. Just come in and crack the whip.
0:40:27 > 0:40:30'Well, they certainly will be cracking the whip to get this done
0:40:30 > 0:40:32'in two to three weeks. However,
0:40:32 > 0:40:36'it sounds like Aidan and Ian might want it fast but they want it good
0:40:36 > 0:40:38'too, which is always good to hear.'
0:40:40 > 0:40:43I think it's really important to present a property
0:40:43 > 0:40:46that you would pretty much want to live in it yourself.
0:40:46 > 0:40:50So that the tenant, what I find is, looks after it.
0:40:50 > 0:40:54And they do, if you give them something nice that is showing them
0:40:54 > 0:40:56respect, and that is in return, it's given back to you,
0:40:56 > 0:40:58so, yeah, definitely.
0:40:58 > 0:41:00You say you know this area well.
0:41:00 > 0:41:04Is this the area you have stuck to for buying property so far?
0:41:04 > 0:41:08No. We have done other estates
0:41:08 > 0:41:13and we have also done detached properties.
0:41:13 > 0:41:14We work with landlords,
0:41:14 > 0:41:17who just want us to do properties up for them.
0:41:17 > 0:41:21But I'd say at the moment, predominantly Shropshire.
0:41:21 > 0:41:24Yeah. We are always looking out for a deal.
0:41:24 > 0:41:26And you want to make a quick turnaround, make a quick profit,
0:41:26 > 0:41:29so that you can build a bit of an empire together? Yeah. Yeah.
0:41:29 > 0:41:30Try and take over the world.
0:41:32 > 0:41:35'Apart from the two flats they have already tackled on this estate,
0:41:35 > 0:41:38'they have worked in HMOs, convergence,
0:41:38 > 0:41:41'renovations and extensions over the last two years.
0:41:41 > 0:41:43'Seems there is no stopping these two.'
0:41:45 > 0:41:47Do you two get on really well together?
0:41:47 > 0:41:49Have you ever, cos you've worked a wee bit together,
0:41:49 > 0:41:50ever any disagreements?
0:41:50 > 0:41:52No. Not really.
0:41:52 > 0:41:54Not at all. We complement each other really well. Yeah.
0:41:54 > 0:41:56Do you have nicknames for each other?
0:41:56 > 0:41:57Not yet.
0:41:57 > 0:41:58Not yet!
0:42:01 > 0:42:05Is it all work, work, work for you boys or do you hang out?
0:42:05 > 0:42:07No, we are...
0:42:07 > 0:42:09We are in a golf society,
0:42:09 > 0:42:13so every third Wednesday in the month we go and play golf
0:42:13 > 0:42:16all over the country, which is great fun.
0:42:17 > 0:42:20And we have gone on holiday together, haven't we?
0:42:20 > 0:42:21Yeah.
0:42:21 > 0:42:24So, yeah, playing golf.
0:42:24 > 0:42:27Hang about quite a bit. The wives don't quite like that.
0:42:27 > 0:42:29We seem to get away with it quite well. Yeah.
0:42:32 > 0:42:36That's nice that you go on holiday together, with your wives as well?
0:42:36 > 0:42:38Sounds a bit of a bromance, it's nice.
0:42:38 > 0:42:40A bromance! Yeah!
0:42:43 > 0:42:45# Love is in the air...
0:42:46 > 0:42:48# Everywhere I look around...
0:42:48 > 0:42:52'I'm glad these two are good sports as well as good mates.'
0:42:52 > 0:42:54# Love is in the air
0:42:54 > 0:42:56# Every sight and every sound... #
0:42:59 > 0:43:01Can't wait to see what you do with the place,
0:43:01 > 0:43:04and really quickly by the sounds of it. Best of luck. Great to meet you.
0:43:04 > 0:43:08And you, Martel. Thanks very much. Thank you, Martel. Thanks.
0:43:08 > 0:43:11Aidan and Ian are seasoned property developers,
0:43:11 > 0:43:13and this flat should not pose too much of a problem for them.
0:43:13 > 0:43:17But what I'm really interested to see is how that blossoming bromance
0:43:17 > 0:43:20develops. You can find out later in the show.
0:43:24 > 0:43:26Earlier we saw property number one,
0:43:26 > 0:43:27but how are the other two getting on? Yes.
0:43:27 > 0:43:32Did their best laid plans go well or were they forced to rethink?
0:43:32 > 0:43:33Let's find out.
0:43:36 > 0:43:38'Now we return to Derby,
0:43:38 > 0:43:42'where I had a look at two separate retail units which had a guide price
0:43:42 > 0:43:43'of 150 grand.'
0:43:45 > 0:43:48'One was already rented out to a bookies,
0:43:48 > 0:43:50'but it was the unoccupied part I was interested in.'
0:43:52 > 0:43:54Wow! HE LAUGHS
0:43:54 > 0:43:56Look at the size of this place.
0:43:56 > 0:44:00Yes, you might have to put a lick of paint up and change the flooring
0:44:00 > 0:44:03in here, but it is in very good condition.
0:44:04 > 0:44:07'With the other unit already bringing in rents,
0:44:07 > 0:44:10'this unit looked like it could be split in two.
0:44:10 > 0:44:13'And its position on a busy road with promising retail potential
0:44:13 > 0:44:15'was encouraging.'
0:44:16 > 0:44:19When it comes to making profit, that could be making profit,
0:44:19 > 0:44:20this could be making profit
0:44:20 > 0:44:25and the bookies already are paying ?6,000 a year.
0:44:26 > 0:44:29'And for the more ambitious investor,
0:44:29 > 0:44:30'why stop on the ground floor?'
0:44:30 > 0:44:32Having walked around the area,
0:44:32 > 0:44:35I have noticed that whether it's residential or commercial,
0:44:35 > 0:44:37most of the buildings are on two floors.
0:44:37 > 0:44:42It says to me this place has the potential to be built on as well.
0:44:44 > 0:44:48'It was funeral directors Jaz on the left and his brother Manny
0:44:48 > 0:44:52'who brought these premises for ?177,000,
0:44:52 > 0:44:54'as part of their business expansion.'
0:44:54 > 0:44:56Within this space we are in now,
0:44:56 > 0:45:00we hopefully are splitting it into smaller rooms, so office space,
0:45:00 > 0:45:05arrangement areas. We wish to get a mortuary in this space also.
0:45:05 > 0:45:08'While retaining the existing tenant next door,
0:45:08 > 0:45:11'they plan to divide a vacant area into two,
0:45:11 > 0:45:14'keeping half for their business and leasing the other half out.'
0:45:14 > 0:45:18We have already got, like, a split wall in between the two units.
0:45:18 > 0:45:19We will put a shop front in
0:45:19 > 0:45:21and make that another rental unit.
0:45:23 > 0:45:26'The brothers hope to complete the project within five months,
0:45:26 > 0:45:29'and at a cost of no more than 60 grand.
0:45:29 > 0:45:33'11 months later, we are back to catch up on their progress.'
0:45:44 > 0:45:47'The main development which will house the funeral business
0:45:47 > 0:45:49'is almost complete.
0:45:52 > 0:45:56'What was a large, open-plan unit has been subdivided,
0:45:56 > 0:45:58'but there is still a lot of work to do.
0:45:58 > 0:46:00'When complete, they will have created
0:46:00 > 0:46:02'the different zones required.'
0:46:03 > 0:46:08'These include a large reception, a more intimate family area,
0:46:08 > 0:46:12'private offices, a chapel room, and at the back,
0:46:12 > 0:46:16'a preparation area and a refrigeration room.
0:46:16 > 0:46:20'Next door, the refurbishment of the retail unit is ongoing,
0:46:20 > 0:46:24'but it is now completely separate from the rest of the building.
0:46:24 > 0:46:26'It has been a busy time for the brothers
0:46:26 > 0:46:28'and while Manny takes care of business,
0:46:28 > 0:46:32'Jaz has managed to take a bit of time out to explain how this project
0:46:32 > 0:46:34'has gone.'
0:46:34 > 0:46:36We are probably about three weeks away from actually opening the
0:46:36 > 0:46:39doors to the public. There's a few details that are missing.
0:46:39 > 0:46:42We are still waiting on some specialist equipment in the mortuary
0:46:42 > 0:46:45to be delivered and fitted.
0:46:45 > 0:46:47The signage outside still needs to be fitted.
0:46:47 > 0:46:49And the rest of things like the furniture, etc,
0:46:49 > 0:46:51which will be coming in within the next week.
0:46:54 > 0:46:57'Things are obviously not that advanced next door,
0:46:57 > 0:46:59'but the pace will be picking up soon.
0:46:59 > 0:47:03'And Jaz reckons it won't be empty for much longer.'
0:47:03 > 0:47:05We are in negotiations with a restaurant, currently,
0:47:05 > 0:47:09who are waiting upon planning permission before we finalise
0:47:09 > 0:47:10that rental agreement.
0:47:11 > 0:47:14'And the brothers have been true to their ethos
0:47:14 > 0:47:16'of using local resources.'
0:47:16 > 0:47:20Everything you see around you has been built and bought locally,
0:47:20 > 0:47:23and built by local Derbyshire tradesmen.
0:47:23 > 0:47:25We've been going through a recruitment process currently,
0:47:25 > 0:47:27and we are close to employing some people,
0:47:27 > 0:47:30and they will be people locally from the Derbyshire area.
0:47:32 > 0:47:37'Looking from the outside, there has been no move to expand upwards,
0:47:37 > 0:47:39'but that does not mean it won't happen.'
0:47:39 > 0:47:41We've actually had the builders and surveyors out to have a look
0:47:41 > 0:47:43at the current structure work.
0:47:43 > 0:47:46They actually agree with us that they think it's feasible
0:47:46 > 0:47:48to build up, which is fantastic news.
0:47:48 > 0:47:54We are actually planning on building a residential site upstairs.
0:47:54 > 0:47:56But probably not in the next few years,
0:47:56 > 0:47:59so it's a project down the line.
0:47:59 > 0:48:01'It has taken 11 months to reach this point,
0:48:01 > 0:48:04'more than double their original five-month estimate.'
0:48:04 > 0:48:07It has been a slow project.
0:48:07 > 0:48:11The biggest hurdle we have found was trying to juggle our work along with
0:48:11 > 0:48:13managing this project,
0:48:13 > 0:48:16which we probably did not anticipate would take so long.
0:48:16 > 0:48:18'And how about juggling that budget?
0:48:18 > 0:48:21'Originally, they hoped to spend under 60 grand.'
0:48:23 > 0:48:25We have been very good with our budget.
0:48:25 > 0:48:27We are currently on about ?45,000.
0:48:27 > 0:48:32We are anticipating another probably ?5,000 that we'll be spending
0:48:32 > 0:48:35in the next couple of weeks. We will still be under,
0:48:35 > 0:48:38significantly under the budget that we first anticipated.
0:48:40 > 0:48:43'This is the fourth branch of the brothers' business.
0:48:43 > 0:48:46'So they are not looking for a quick profit.
0:48:46 > 0:48:50'But we've asked two local estate agents along to give us their
0:48:50 > 0:48:54'thoughts on this 227 grand investment.
0:48:54 > 0:48:56'First the agent who saw it before.'
0:48:56 > 0:49:02Quite significant changes, since my last visit here a year or so ago.
0:49:02 > 0:49:06Interesting concept, they have a funeral parlour now running adjacent
0:49:06 > 0:49:08to what will potentially be a restaurant.
0:49:08 > 0:49:11The layout, there are a lot of rooms here to use which you would imagine
0:49:11 > 0:49:14is important. So there is plenty of storage space, showrooms,
0:49:14 > 0:49:16office rooms, and the finish is really good.
0:49:16 > 0:49:19It's clean, it's tidy and it's neat.
0:49:19 > 0:49:21It has just got a nice feel to it.
0:49:21 > 0:49:23'So, positive views from the agents.
0:49:23 > 0:49:26'And since it has been nearly a year since we visited,
0:49:26 > 0:49:29'has the value of the units increased
0:49:29 > 0:49:32'bearing in mind the brothers paid 177 grand at auction?'
0:49:34 > 0:49:38I feel it is likely to achieve in the region of sort of ?250,000.
0:49:38 > 0:49:41The property is quite unique, there aren't many direct comparables,
0:49:41 > 0:49:45but I would expect this to market in the region of ?245,000.
0:49:45 > 0:49:49'After a total spend of ?227,000,
0:49:49 > 0:49:55'that top value of 250 grand leaves Jaz and Manny a potential 23 grand
0:49:55 > 0:49:59'profit. Not forgetting to add the rent of five and a half grand
0:49:59 > 0:50:02'they have received so far from the bookies next door.
0:50:02 > 0:50:05'So, what does Jaz make of the figures?'
0:50:05 > 0:50:06The resale value is interesting.
0:50:06 > 0:50:09I think it's exactly where we expected it to be at this stage
0:50:09 > 0:50:11of the project. However,
0:50:11 > 0:50:14it was not a thing that we really considered, selling this project.
0:50:14 > 0:50:17However, we don't know what might happen in the future.
0:50:18 > 0:50:20'And what about the rental income?'
0:50:20 > 0:50:24On the rental market, I would expect the entire building to achieve
0:50:24 > 0:50:25in the region of ?20,000 a year.
0:50:25 > 0:50:28It's probably likely to achieve
0:50:28 > 0:50:31in the region of ?15,000 to ?20,000 per year.
0:50:31 > 0:50:33They are quite significantly lower than what we actually are
0:50:33 > 0:50:35achieving on this site.
0:50:35 > 0:50:39We will be getting close to ?30,000 across all three sites.
0:50:40 > 0:50:44'Jaz is currently negotiating rents on the other two units,
0:50:44 > 0:50:47'and his business will pay rent on this one.
0:50:47 > 0:50:50'If he is right about that 30K figure, that would mean a yield
0:50:50 > 0:50:56'of 13%. So, how is Jaz feeling about his new branch right now?'
0:50:57 > 0:50:59It's just itchy feet now.
0:50:59 > 0:51:00Can't wait to get it open.
0:51:06 > 0:51:09'Time to head back to Telford in Shropshire where I saw this
0:51:09 > 0:51:13'one-bedroom ground floor flat with a guide price of ?34,000.'
0:51:14 > 0:51:18'Now, I'm not afraid of getting my hands dirty, but...'
0:51:18 > 0:51:20It could do with a bit of a wash.
0:51:20 > 0:51:22Sometimes that makes all the difference.
0:51:22 > 0:51:24There are loads of stains on the doors
0:51:24 > 0:51:25and it needs a good lick of paint.
0:51:27 > 0:51:30'The grotty bathroom was no different, and to be honest,
0:51:30 > 0:51:32'needed a total refit.
0:51:32 > 0:51:34'There was a decent size double bedroom
0:51:34 > 0:51:36'and a fairly spacious living room.'
0:51:39 > 0:51:42'But there was a bit of scope to shape things up
0:51:42 > 0:51:44'when it came to the kitchen.'
0:51:46 > 0:51:49This is a stud wall, so you have your airing cupboard in here,
0:51:49 > 0:51:53your stud wall, which means it would not be too much of a job
0:51:53 > 0:51:56to take this down and open up this kitchen.
0:51:56 > 0:51:57AUCTIONEER: 35...
0:51:57 > 0:51:59'When it came to auction day,
0:51:59 > 0:52:03'property developing duo Ian and Aidan snapped up the grubby
0:52:03 > 0:52:06'ground floor flat for 35 grand,
0:52:06 > 0:52:08'a mere ?1,000 over the guide price.
0:52:11 > 0:52:14'So, their combined experience was already paying off.
0:52:14 > 0:52:17'But it was not just about business for these two.'
0:52:19 > 0:52:21We have gone on holiday together, haven't we?
0:52:21 > 0:52:23Yeah.
0:52:23 > 0:52:25So, yeah, we play golf.
0:52:25 > 0:52:28Hang about quite a bit. The wives don't quite like that.
0:52:28 > 0:52:30We seem to get away with it quite well.
0:52:30 > 0:52:32Yeah. THEY LAUGH
0:52:33 > 0:52:36I sense a bit of a bromance. It's nice. Yeah.
0:52:36 > 0:52:38A bromance! Yeah!
0:52:38 > 0:52:40# Ra-ra-ah-ah-ah-ah
0:52:40 > 0:52:42# Ro mah Ro-mah-mah
0:52:42 > 0:52:44# Gaga Ooh-la-la!
0:52:44 > 0:52:47# Want your bad romance... #
0:52:48 > 0:52:51'This bromance was leaving nothing to chance.
0:52:51 > 0:52:53'With the help of their builders,
0:52:53 > 0:52:55'they hoped to have the property ready for rental
0:52:55 > 0:52:59'in two to three weeks, and for a budget of four grand.
0:52:59 > 0:53:02'We are back just one month later to see how they got on.'
0:53:12 > 0:53:15'The kitchen has been brought back to life with the help of some trendy
0:53:15 > 0:53:17'tiles and fab textiles.
0:53:17 > 0:53:22'As I suggested, the airing cupboard has been used to expand the kitchen,
0:53:22 > 0:53:23'allowing space for a table.
0:53:23 > 0:53:26'And new units, fitted appliances
0:53:26 > 0:53:29'and stylish worktops really complete the look.'
0:53:34 > 0:53:36'The bathroom looks spic and span.
0:53:36 > 0:53:39'The new suite and vanity unit add a tad of class
0:53:39 > 0:53:43'and those accent tiles really make the decor pop.
0:53:47 > 0:53:50'The bedroom is no longer dirty, but divine.
0:53:50 > 0:53:54'And new wall and floor coverings really smarten the place up.
0:53:59 > 0:54:01'The living area is looking much more relaxing, too.
0:54:01 > 0:54:06'Freshly decorated in neutral tones, it's a head-to-toe makeover.'
0:54:07 > 0:54:11'Did anything original make the cut?'
0:54:11 > 0:54:13The only thing we saved was the bath, wasn't it?
0:54:13 > 0:54:15The electrics were OK.
0:54:15 > 0:54:17We had them checked. The boiler was OK. Yeah.
0:54:17 > 0:54:19And we kept a few spiders, did we?
0:54:19 > 0:54:21No!
0:54:22 > 0:54:26'Creepy-crawlies don't seem to have put off their builders,
0:54:26 > 0:54:28'who have done a fantastic job.
0:54:28 > 0:54:31'Now, is that because they had top-notch project managers?'
0:54:32 > 0:54:34I think I come once.
0:54:34 > 0:54:36We... Well, you were on holiday. Yeah!
0:54:38 > 0:54:39So, effectively...
0:54:41 > 0:54:43..they don't need hands-on management.
0:54:43 > 0:54:45They like to be left to get on with it.
0:54:45 > 0:54:47They know what they are doing.
0:54:47 > 0:54:50What's really important is that we get all the materials ready for them
0:54:50 > 0:54:52and get it delivered on-site.
0:54:52 > 0:54:54So, we're in and out, but we're not heavy management.
0:54:56 > 0:54:59'Considering they stuck to that rapid two to three week turnaround,
0:54:59 > 0:55:02'it seems like everything went according to plan.
0:55:02 > 0:55:05'What about that four grand budget?'
0:55:05 > 0:55:09?4,002.36.
0:55:09 > 0:55:11By the ?2 we went over budget, yeah,
0:55:11 > 0:55:14he did give me a bit of a telling off because I went overboard
0:55:14 > 0:55:15on the tiles.
0:55:15 > 0:55:19'Could this mean trouble in paradise? Not to worry, Aidan,
0:55:19 > 0:55:21'I'm sure you can absorb the two quid overspend
0:55:21 > 0:55:23'with the rental income.'
0:55:24 > 0:55:28So, the plan is this afternoon we get it furnished,
0:55:28 > 0:55:31and tomorrow, people moving in.
0:55:32 > 0:55:35'So now seems like a good time for some values.
0:55:35 > 0:55:39'But first, let's see what two local estate agents thought of the changes
0:55:39 > 0:55:43'to the flat, starting with the agent who saw it first.'
0:55:43 > 0:55:46I think there's been some substantial improvements
0:55:46 > 0:55:47that have been made.
0:55:47 > 0:55:49You know, from when we were last previously here,
0:55:49 > 0:55:51we recommended the kitchen,
0:55:51 > 0:55:53the bathroom, you know, to have improvements.
0:55:53 > 0:55:55They have certainly taken that on board.
0:55:55 > 0:56:00Obviously the brand-new kitchen/diner, you have extra space.
0:56:00 > 0:56:02So, you know, if somebody wants to sit and enjoy a meal, they have
0:56:02 > 0:56:04obviously got space to do that now which is good.
0:56:04 > 0:56:07The finish for this type of property,
0:56:07 > 0:56:09I would say they have got spot on.
0:56:09 > 0:56:12You wouldn't want to go too overboard with the finish because
0:56:12 > 0:56:16of the resale, there is a limited price that you could reach.
0:56:16 > 0:56:17And also for the rental market,
0:56:17 > 0:56:20which probably is best suited for this type of property.
0:56:22 > 0:56:24'What kind of figure could the house achieve on the sales market,
0:56:24 > 0:56:28'considering Ian and Aidan's total investment of ?39,000?'
0:56:31 > 0:56:33I think from the sales market perspective,
0:56:33 > 0:56:38you are probably looking somewhere in the region of ?45,000 to ?50,000.
0:56:38 > 0:56:42Now the property has been renovated, being a ground floor apartment,
0:56:42 > 0:56:47I would suggest marketing price of around ?50,000,
0:56:47 > 0:56:50to achieve between ?48,000 and ?50,000.
0:56:50 > 0:56:56'Not bad. That's a potential profit of 11 grand minus taxes and fees.
0:56:56 > 0:56:59'But Aidan and Ian already have a tenant lined up!
0:56:59 > 0:57:02'So what did agents think they should be achieving
0:57:02 > 0:57:04'on the rental market?'
0:57:04 > 0:57:06I think for rental purposes,
0:57:06 > 0:57:10you are probably looking somewhere in the region of ?375 to ?400
0:57:10 > 0:57:11per calendar month.
0:57:11 > 0:57:14If you were to put this on the rental market today,
0:57:14 > 0:57:16I would suggest it rental income
0:57:16 > 0:57:18of around about ?400 per calendar month.
0:57:18 > 0:57:20That's OK. Yeah.
0:57:20 > 0:57:23But we have already rented for 425.
0:57:23 > 0:57:24We are happy with that. Yeah.
0:57:24 > 0:57:27I think the condition of it warranted slightly more.
0:57:30 > 0:57:34'The figure of ?425 per calendar month the guys would be achieving
0:57:34 > 0:57:37'works out a whopping yield of 13%,
0:57:37 > 0:57:40'showing us this bromance is a match made in heaven.
0:57:41 > 0:57:44'So, do they have any top tips for potential investors out there?'
0:57:46 > 0:57:48Make sure that the boiler is OK.
0:57:48 > 0:57:52Make sure you understand the properties you are buying
0:57:52 > 0:57:55and the market that you are aiming for.
0:57:55 > 0:57:58And within probably 5% to 10%,
0:57:58 > 0:58:00exactly what you are going to spend on it.
0:58:00 > 0:58:02And if you are not sure, give us a call.
0:58:06 > 0:58:08Well, that's the last of today's property stories.
0:58:08 > 0:58:10But there are many, many more to share with you.
0:58:10 > 0:58:14And the best bit is that every project tells its own story.
0:58:14 > 0:58:16Yes, join us again here on Homes Under The Hammer.
0:58:16 > 0:58:18We will have loads more. See you.
0:58:18 > 0:58:19Bye-bye. Goodbye.
0:58:46 > 0:58:49What makes you two different from each other?
0:58:49 > 0:58:53Um, we both live on different roads.
0:58:53 > 0:58:56His favourite food is apples, my favourite food is cucumber.
0:58:56 > 0:58:58Both...
0:58:59 > 0:59:02She never stops talking!
0:59:02 > 0:59:04Oh, no, we're not, look.