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Hello, welcome to the show. Now, the twists and turns | 0:00:03 | 0:00:05 | |
and highs and lows of the property market can actually put a lot | 0:00:05 | 0:00:08 | |
of people off investing. Yes, it can be an unpredictable journey, | 0:00:08 | 0:00:12 | |
but if you start your search well prepared, you might get it right. | 0:00:12 | 0:00:15 | |
And when thinking about where to start, | 0:00:15 | 0:00:17 | |
why not consider buying your next property at auction? | 0:00:17 | 0:00:20 | |
Unfortunately, there's no magic formula when it comes to property | 0:00:47 | 0:00:50 | |
development, and it can be hard to judge the potential from afar. | 0:00:50 | 0:00:54 | |
Yeah, that's why buyers on Homes Under The Hammer often get it right. | 0:00:54 | 0:00:57 | |
They do their research and they view the property. | 0:00:57 | 0:01:01 | |
So, were the buyers on today's show prepared? | 0:01:01 | 0:01:04 | |
Let's see what they bought. | 0:01:04 | 0:01:05 | |
'Coming up, Lucy is in Coulsdon, London, | 0:01:07 | 0:01:09 | |
'but this three-bed semi ain't all it's cracked up to be.' | 0:01:09 | 0:01:13 | |
Look at that crack. | 0:01:13 | 0:01:15 | |
'Space is important to me when it comes to these commercial premises | 0:01:17 | 0:01:20 | |
'in Derby city centre.' | 0:01:20 | 0:01:22 | |
Wow. | 0:01:22 | 0:01:23 | |
HE LAUGHS Look at the size of this place. | 0:01:23 | 0:01:25 | |
'This grubby ground floor flat in Telford is a bit of a BYOB, | 0:01:26 | 0:01:32 | |
'you know, bring your own bleach.' | 0:01:32 | 0:01:33 | |
It could do with a bit of a wash. | 0:01:34 | 0:01:36 | |
'All these properties have been sold at auction, | 0:01:39 | 0:01:41 | |
'and we'll find out who bought them, | 0:01:41 | 0:01:43 | |
'and what they paid when they went under the hammer.' | 0:01:43 | 0:01:45 | |
GAVEL BANGS Yours, sir. | 0:01:45 | 0:01:46 | |
'Today, Lucy is in the small town of Coulsdon. | 0:01:49 | 0:01:52 | |
'Coulsdon lies within the far southern reaches | 0:01:52 | 0:01:55 | |
'of the Greater London boundary.' | 0:01:55 | 0:01:57 | |
'It has two train stations and the and M25 can be accessed | 0:01:59 | 0:02:03 | |
'in just 15 minutes, which has proved attractive for buyers | 0:02:03 | 0:02:06 | |
'who work in the city. | 0:02:06 | 0:02:08 | |
'And speaking of busy routes...' | 0:02:08 | 0:02:09 | |
Now, the first thing you'll notice about this road, well, | 0:02:10 | 0:02:13 | |
it's really busy. | 0:02:13 | 0:02:15 | |
And there's lots of traffic hurtling past. | 0:02:15 | 0:02:17 | |
But I'm not one to dwell on the negatives, | 0:02:17 | 0:02:20 | |
and I'm really pleased to see that the property I'm here to look at | 0:02:20 | 0:02:23 | |
is set back from the road by this rather long driveway. | 0:02:23 | 0:02:27 | |
And that means, of course, off-street parking. | 0:02:27 | 0:02:29 | |
It's a semi, it's got three bedrooms, | 0:02:29 | 0:02:31 | |
and it had a guide price of ?350,000 plus. | 0:02:31 | 0:02:35 | |
'It looks pretty good from the outside, | 0:02:39 | 0:02:41 | |
'and as well as that long driveway, it also has a garage.' | 0:02:41 | 0:02:44 | |
So, even though I'm inside the property, | 0:02:47 | 0:02:49 | |
you can still hear a little bit of that road noise out there. | 0:02:49 | 0:02:53 | |
The first thing I notice is this beautiful stained glass window | 0:02:53 | 0:02:57 | |
which I absolutely love. | 0:02:57 | 0:02:59 | |
I know it's not to everybody's taste, but I particularly love that. | 0:02:59 | 0:03:02 | |
But look how the window is on the slant. | 0:03:02 | 0:03:05 | |
And even walking in here you feel a little bit like you just want | 0:03:05 | 0:03:09 | |
to keep doing that. So, this house is definitely sort of leaning | 0:03:09 | 0:03:13 | |
towards this way. | 0:03:13 | 0:03:14 | |
But again, you'll have an abundance of lovely '30s character. | 0:03:14 | 0:03:18 | |
I bet underneath all of these, you've got nice little spindles, | 0:03:18 | 0:03:21 | |
you've got some Bakelite switches here which probably don't comply | 0:03:21 | 0:03:25 | |
with the current regulations, but they look lovely. | 0:03:25 | 0:03:28 | |
Nice big lounge through there. | 0:03:28 | 0:03:29 | |
Kitchen which is fairly small, | 0:03:29 | 0:03:31 | |
but you'd expect to see that in a house of this age. | 0:03:31 | 0:03:34 | |
And a very lilac sitting room. | 0:03:34 | 0:03:37 | |
My gosh, such a purple space! | 0:03:37 | 0:03:40 | |
So, obviously, you know, you need to redecorate here. | 0:03:40 | 0:03:42 | |
There are polystyrene tiles everywhere in this house, | 0:03:42 | 0:03:46 | |
a bit of a dated fireplace over here. | 0:03:46 | 0:03:48 | |
You probably want to change that. | 0:03:48 | 0:03:50 | |
You've got double-glazed double doors leading out to what's a very, | 0:03:50 | 0:03:54 | |
very pretty back garden. | 0:03:54 | 0:03:56 | |
And quite a lot of space in there. | 0:03:56 | 0:03:58 | |
So, some things to consider with this one, but I'd first of all | 0:03:58 | 0:04:01 | |
really look into why the floors seem to go like that. | 0:04:01 | 0:04:05 | |
# Slide away | 0:04:10 | 0:04:12 | |
# And give it all you've got | 0:04:12 | 0:04:15 | |
# My today | 0:04:15 | 0:04:17 | |
# Fell in from the top... # | 0:04:17 | 0:04:20 | |
'These telltale cracks and leaning walls | 0:04:20 | 0:04:23 | |
'are common signs of subsidence, | 0:04:23 | 0:04:25 | |
'which is enough to give anyone that sinking feeling.' | 0:04:25 | 0:04:28 | |
'Looking on the bright side, though, it's a spacious house, | 0:04:29 | 0:04:32 | |
'and there is plenty of scope to extend into the expansive garden | 0:04:32 | 0:04:36 | |
'if you were to knock down or incorporate the garage. | 0:04:36 | 0:04:39 | |
'But let's not get ahead of ourselves.' | 0:04:39 | 0:04:41 | |
OK, so back to the wonkiness of this house. | 0:04:43 | 0:04:45 | |
And we're going to head over to the coat cupboard, | 0:04:45 | 0:04:47 | |
not to show you what's inside - coats, jackets - no. | 0:04:47 | 0:04:51 | |
Take a look at this. | 0:04:51 | 0:04:53 | |
Look at that crack. | 0:04:53 | 0:04:57 | |
Wow. That's... that's quite impressive. | 0:04:57 | 0:04:58 | |
It goes on all the way up there as well. | 0:04:58 | 0:05:01 | |
And they do say if you can fit your hand inside - | 0:05:01 | 0:05:04 | |
look, I can literally fit my hand between the bricks in there - | 0:05:04 | 0:05:08 | |
it's doubly, triply serious. | 0:05:08 | 0:05:09 | |
So, a lot of money is going to have to be spent to rectify that. | 0:05:09 | 0:05:13 | |
Subsidence is definitely something to worry about here. | 0:05:13 | 0:05:17 | |
Good luck, whoever takes this property on. | 0:05:17 | 0:05:19 | |
'Unfortunately the signs of subsidence are evident across | 0:05:21 | 0:05:24 | |
'all three bedrooms upstairs. | 0:05:24 | 0:05:26 | |
'But there are ways to fix the problem.' | 0:05:26 | 0:05:28 | |
'Underpinning - which means strengthening the foundations - | 0:05:30 | 0:05:33 | |
'was traditionally done by hand, digging out underneath of the house | 0:05:33 | 0:05:37 | |
'and filling in with concrete. | 0:05:37 | 0:05:39 | |
'But, thankfully there are now alternative methods available.' | 0:05:39 | 0:05:42 | |
Now, subsidence is usually caused by soil shrinkage. | 0:05:47 | 0:05:51 | |
And often, well, that's because the trees | 0:05:51 | 0:05:53 | |
and the shrubs suck out moisture. | 0:05:53 | 0:05:55 | |
Now, just have a look at all the trees and foliage, all the way here, | 0:05:55 | 0:05:59 | |
you've got a big tree down the end there. You've got all of this. | 0:05:59 | 0:06:02 | |
I mean, look at this - the pavement is cracked so close to the house, | 0:06:02 | 0:06:06 | |
it's a bit of a worry. | 0:06:06 | 0:06:07 | |
Now, I'd say this might all be the cause of the movement here, | 0:06:07 | 0:06:12 | |
but first things first, I would get an expert to check this out | 0:06:12 | 0:06:16 | |
and give a firm diagnosis. | 0:06:16 | 0:06:17 | |
# It just depends how close to ground level you are... # | 0:06:18 | 0:06:22 | |
'So, just how worried should you be about subsidence? | 0:06:24 | 0:06:27 | |
'We asked an agent from the auction house that sold the property | 0:06:28 | 0:06:31 | |
'what she thought of the issue on this house guided at ?350,000 plus.' | 0:06:31 | 0:06:37 | |
There are some cracks in the property, it does look a little bit | 0:06:37 | 0:06:40 | |
worrying, I would suggest looking a bit deeper into that. | 0:06:40 | 0:06:44 | |
'Assuming the skewwhiff semi is sorted, | 0:06:44 | 0:06:47 | |
'what other possibilities are there for this property?' | 0:06:47 | 0:06:50 | |
Downstairs you could do a rear extension, | 0:06:51 | 0:06:53 | |
have a really lovely open-plan kitchen, | 0:06:53 | 0:06:55 | |
living area and still have ample space in the garden. | 0:06:55 | 0:06:58 | |
Upstairs, definitely enough room for a loft conversion. | 0:06:58 | 0:07:01 | |
I would only recommend to do the extensions | 0:07:01 | 0:07:04 | |
if the family was going to stay here and enjoy it. | 0:07:04 | 0:07:07 | |
If it's for a quick turnover to make a bit of money on the property, | 0:07:07 | 0:07:10 | |
I don't think that would benefit, | 0:07:10 | 0:07:12 | |
and then they'd make that extra cost back on the price. | 0:07:12 | 0:07:15 | |
'While the cost of extending might not be worth it for an investor, | 0:07:15 | 0:07:19 | |
'just what kind of price could you achieve for this house | 0:07:19 | 0:07:22 | |
'as a three-bed and as a four-bed?' | 0:07:22 | 0:07:24 | |
'I would say, once renovated as a three-bed, | 0:07:26 | 0:07:28 | |
'you'd be looking somewhere between ?430,000 to ?450,000.' | 0:07:28 | 0:07:33 | |
If you were to extend the property into a four-bed, | 0:07:33 | 0:07:35 | |
you would be looking at around ?460,000. | 0:07:35 | 0:07:39 | |
Although it could be really lovely, | 0:07:41 | 0:07:43 | |
at the moment this is a house with some serious issues. | 0:07:43 | 0:07:46 | |
I just hope it fell into the hands of somebody, well, | 0:07:46 | 0:07:49 | |
with some experience. | 0:07:49 | 0:07:51 | |
Let's find out who that was when it went under the hammer. | 0:07:51 | 0:07:54 | |
AUCTIONEER: Two-floor, semidetached house. | 0:07:57 | 0:07:59 | |
As you see it in your catalogues, | 0:07:59 | 0:08:00 | |
no announcements or amendments on this one, | 0:08:00 | 0:08:02 | |
so I'll bring it straight in at 350, shall I? | 0:08:02 | 0:08:05 | |
Thank you, they were just first. | 0:08:05 | 0:08:06 | |
OK, 352, 355, 357, 360. | 0:08:06 | 0:08:12 | |
'There were some familiar faces in the room, | 0:08:12 | 0:08:14 | |
'and the bidding was off to a steady start. | 0:08:14 | 0:08:17 | |
'We rejoin the action at 385,000.' | 0:08:17 | 0:08:20 | |
385? | 0:08:22 | 0:08:23 | |
385, 386? 387? | 0:08:23 | 0:08:25 | |
It's going to go, and it's going at 386 now, for the first, | 0:08:27 | 0:08:31 | |
at 386 for the second, | 0:08:31 | 0:08:34 | |
third, 387, 388, | 0:08:34 | 0:08:37 | |
389? | 0:08:37 | 0:08:38 | |
It's now at the front. | 0:08:40 | 0:08:41 | |
Yes, out? 388 for the first, | 0:08:41 | 0:08:44 | |
388 for the second, | 0:08:44 | 0:08:47 | |
third, last chance. | 0:08:47 | 0:08:49 | |
GAVEL BANGS Yours, sir, at ?388,000, well done. | 0:08:49 | 0:08:53 | |
'Familiar faces and successful bidders paying 388 grand for the lot | 0:08:53 | 0:08:58 | |
'were professional property developers Chris and Pauline. | 0:08:58 | 0:09:02 | |
'This will be the husband-and-wife team's fourth time | 0:09:02 | 0:09:05 | |
'on Homes Under The Hammer. We most recently featured | 0:09:05 | 0:09:08 | |
'their fabulous property in Selhurst. | 0:09:08 | 0:09:10 | |
'Lucy caught up with them once more while daughter Molly was at school.' | 0:09:12 | 0:09:16 | |
Pauline and Chris, not you two again! | 0:09:17 | 0:09:19 | |
SHE LAUGHS | 0:09:19 | 0:09:21 | |
So, come on, whose fault is this one? | 0:09:21 | 0:09:23 | |
Totally his, I haven't even... I haven't viewed it. | 0:09:23 | 0:09:26 | |
I only saw it today for the first time. | 0:09:26 | 0:09:28 | |
So, you left it all to your dear husband. | 0:09:28 | 0:09:30 | |
Yeah. Tell me the story. | 0:09:30 | 0:09:31 | |
We'd gone to France skiing over Easter, came back, | 0:09:31 | 0:09:34 | |
I took Molly up to Manchester to stay with my sister, | 0:09:34 | 0:09:36 | |
and he went to viewings and decided that it was just a wee crack | 0:09:36 | 0:09:41 | |
in the house, there wasn't... It was nothing to be worried about, | 0:09:41 | 0:09:44 | |
just a wee... | 0:09:44 | 0:09:45 | |
I thought a bit of Polyfilla will fix... Hairline, hairline crack. | 0:09:45 | 0:09:49 | |
Anyway, I come in here, it's like the San Andreas Fault. | 0:09:49 | 0:09:51 | |
'OK, a wee crack, so how bad is the wee bit of subsidence?' | 0:09:53 | 0:09:57 | |
It drops by about five centimetres or so on the left-hand side. | 0:09:59 | 0:10:04 | |
Really, it's not a big deal. | 0:10:04 | 0:10:05 | |
OK, right, let's have a big meaty chat about this. | 0:10:05 | 0:10:09 | |
So, I'm with you on this one, Pauline. | 0:10:09 | 0:10:12 | |
I was a bit shocked, I was like, "Oh, bump! | 0:10:12 | 0:10:14 | |
"This house really leans to the right." | 0:10:14 | 0:10:16 | |
Yeah. So, what do you know about subsidence? | 0:10:16 | 0:10:18 | |
Do you think it is, are you worried and surely you are going to need to | 0:10:18 | 0:10:21 | |
get somebody around to have a look at this? | 0:10:21 | 0:10:23 | |
Yeah, I mean, for sure we'll get a professional company to sort the | 0:10:23 | 0:10:26 | |
subsidence out, that's number one job. | 0:10:26 | 0:10:29 | |
That gets fixed and then everything else goes around that. | 0:10:29 | 0:10:31 | |
But it is just a problem that needs fixing. | 0:10:31 | 0:10:35 | |
I mean, obviously with your repairs, | 0:10:35 | 0:10:37 | |
it's not going to prop the house back up again. | 0:10:37 | 0:10:39 | |
Well, the subsidence firm we're looking at, injects this foam | 0:10:39 | 0:10:43 | |
underneath the foundation | 0:10:43 | 0:10:44 | |
and it has got the potential to lift it up a bit. | 0:10:44 | 0:10:46 | |
Expanding. Maybe not five centimetres that we've dropped. | 0:10:46 | 0:10:49 | |
It's like expanding foam, but instead of being soft, | 0:10:49 | 0:10:53 | |
it sets like rock. | 0:10:53 | 0:10:54 | |
So, we're going to kind of inject synthetic rock underneath | 0:10:54 | 0:10:57 | |
the foundations, and it does have the potential to lift it up a bit. | 0:10:57 | 0:11:01 | |
'Whatever method they use, | 0:11:01 | 0:11:02 | |
'it will eat up a fair portion of their ?120,000 to ?150,000 budget. | 0:11:02 | 0:11:07 | |
'And while it's a decent figure, | 0:11:07 | 0:11:09 | |
'they are planning to extend at the rear of the property | 0:11:09 | 0:11:12 | |
'and up into the loft, creating a fourth bedroom with en suite.' | 0:11:12 | 0:11:15 | |
'There is a lot to do in their 9-12 month timescale, | 0:11:17 | 0:11:21 | |
'so they based their plans on a neighbouring property. | 0:11:21 | 0:11:24 | |
'In fact, they even have the same architect. | 0:11:24 | 0:11:27 | |
'And while they will get builders in for the major works, | 0:11:27 | 0:11:30 | |
'Pauline and Chris are pretty handy themselves.' | 0:11:30 | 0:11:33 | |
These polystyrene tiles have got my name written all over them. | 0:11:34 | 0:11:38 | |
Yes, get rid of them. | 0:11:38 | 0:11:40 | |
All throughout the whole house, | 0:11:40 | 0:11:42 | |
and all the wallpaper and stuff I will be chivvying off, I think. | 0:11:42 | 0:11:46 | |
We'll see how the house is by the time we finish, | 0:11:46 | 0:11:49 | |
and then we'll think about colours, but all will be nice and neutral, | 0:11:49 | 0:11:53 | |
nothing garish cos that won't be allowed. | 0:11:53 | 0:11:55 | |
You know, there'll be nice greys and greens. | 0:11:55 | 0:11:59 | |
Green's the new grey this year, apparently. | 0:11:59 | 0:12:01 | |
Green is the new grey, | 0:12:01 | 0:12:02 | |
so are we going to be seeing some greens poking through the grey? | 0:12:02 | 0:12:05 | |
Oh, yeah, probably, yeah. | 0:12:05 | 0:12:07 | |
Fabulous. Totally up my street. | 0:12:07 | 0:12:09 | |
And you're here every day obviously doing all the work. | 0:12:09 | 0:12:12 | |
I do a lot, I'm more at the start. | 0:12:12 | 0:12:15 | |
I'm good for demolition, but I've got no finishing skills, | 0:12:15 | 0:12:18 | |
so once we get to that point, then it's over to the builders | 0:12:18 | 0:12:21 | |
and they do all the plastering and painting, and... | 0:12:21 | 0:12:23 | |
So, working together as a team | 0:12:23 | 0:12:24 | |
is really working out for you, isn't it? | 0:12:24 | 0:12:27 | |
Well, you know, it's, like, we get on each other's nerves occasionally. | 0:12:27 | 0:12:32 | |
You know, we have little squabbles over tiles, | 0:12:32 | 0:12:35 | |
and we don't speak for a night or so, and then we compromise. | 0:12:35 | 0:12:39 | |
I always go too expensive. And who normally gets their way? | 0:12:39 | 0:12:42 | |
I do, of course. | 0:12:42 | 0:12:43 | |
Goes without saying, I'm in charge. | 0:12:43 | 0:12:46 | |
Guys, I'm so excited, | 0:12:46 | 0:12:48 | |
I'm desperate to find out the outcome for the subsidence, | 0:12:48 | 0:12:52 | |
but good luck, both of you. | 0:12:52 | 0:12:53 | |
And I'm really looking forward to seeing how you do this place. | 0:12:53 | 0:12:56 | |
Lovely to see you again, so nice, thank you. | 0:12:56 | 0:12:58 | |
Thank you, Lucy. | 0:12:58 | 0:12:59 | |
Well, Pauline and Chris, we meet again. | 0:13:01 | 0:13:04 | |
They are becoming Homes Under The Hammer frequent flyers. | 0:13:04 | 0:13:07 | |
However, they've taken on something bigger and significantly more | 0:13:07 | 0:13:10 | |
challenging. Will their property developing success story continue | 0:13:10 | 0:13:15 | |
as they tackle subsidence and extensions? | 0:13:15 | 0:13:18 | |
Join me later on in the programme and you can find out | 0:13:18 | 0:13:21 | |
how the couple get on. | 0:13:21 | 0:13:22 | |
'It's back to the city of Derby for me - | 0:13:28 | 0:13:30 | |
'an area we've visited regularly over the years | 0:13:30 | 0:13:32 | |
'on Homes Under The Hammer.' | 0:13:32 | 0:13:34 | |
'There's a lot going on here, plenty of amenities, | 0:13:35 | 0:13:38 | |
'great transport links as well as historic buildings. | 0:13:38 | 0:13:42 | |
'There's often an interesting property investment | 0:13:42 | 0:13:44 | |
'to be found, too.' | 0:13:44 | 0:13:45 | |
So, just a ten-minute walk away from Derby town centre on this very busy | 0:13:47 | 0:13:51 | |
main road, which is a mix of residential and commercial, | 0:13:51 | 0:13:54 | |
is the property I'm here to see. | 0:13:54 | 0:13:56 | |
And it's a commercial unit that I'm looking at today. | 0:13:56 | 0:13:59 | |
Part of it is being rented out to the bookies, | 0:13:59 | 0:14:02 | |
the other half is just here, and that's what I'm here to see. | 0:14:02 | 0:14:05 | |
Has a guide price of ?150,000. | 0:14:05 | 0:14:09 | |
Is it going to be worth the gamble? Let's take a look. | 0:14:09 | 0:14:11 | |
Wow! HE LAUGHS | 0:14:15 | 0:14:17 | |
Look at the size of this place. | 0:14:17 | 0:14:19 | |
And the condition it is in as well. | 0:14:19 | 0:14:22 | |
Yes, you might have to put a lick of paint up and change the flooring | 0:14:22 | 0:14:25 | |
in here, but it is in very good condition. | 0:14:25 | 0:14:28 | |
And you have got to think as well, the location... | 0:14:28 | 0:14:31 | |
It's incredibly busy out there, the footfall is superb. | 0:14:31 | 0:14:35 | |
Through here, you've got... | 0:14:35 | 0:14:37 | |
..another room just here. Another decent-sized room, so straightaway, | 0:14:38 | 0:14:42 | |
I'm thinking you could make that a separate unit to this one, | 0:14:42 | 0:14:46 | |
close the door, block it off, brick it up, do what you want. | 0:14:46 | 0:14:49 | |
But when it comes to making profit, that could be making profit, | 0:14:49 | 0:14:53 | |
this could be making profit | 0:14:53 | 0:14:54 | |
and the bookies already are paying ?6,000 a year. | 0:14:54 | 0:14:59 | |
Imagine that kind of money coming in. | 0:14:59 | 0:15:01 | |
There is definitely profit to be made here. | 0:15:01 | 0:15:03 | |
# Got brass in pocket... # | 0:15:06 | 0:15:10 | |
'Splitting these premises further would definitely give you more | 0:15:11 | 0:15:14 | |
'bang for your buck and there's loads of options here. | 0:15:14 | 0:15:18 | |
'An office, a salon, a restaurant... | 0:15:18 | 0:15:20 | |
'Just remember, different types of businesses | 0:15:21 | 0:15:24 | |
'have different use classes. | 0:15:24 | 0:15:26 | |
'Change of use sometimes requires planning permission, | 0:15:26 | 0:15:29 | |
'so always best to check with your local planners before you buy, | 0:15:29 | 0:15:33 | |
'or maybe you could do something entirely different.' | 0:15:33 | 0:15:36 | |
Having walked around the area, | 0:15:39 | 0:15:40 | |
I have noticed that whether it is residential or commercial, | 0:15:40 | 0:15:43 | |
most of the buildings are on two floors, | 0:15:43 | 0:15:45 | |
which says to me that this place | 0:15:45 | 0:15:48 | |
has the potential to be built on as well. | 0:15:48 | 0:15:50 | |
Now, you could put commercial units up there, | 0:15:50 | 0:15:52 | |
or you could put residential. | 0:15:52 | 0:15:54 | |
Now, if you were going to go down the residential route, | 0:15:54 | 0:15:56 | |
there is a lot of red tape to go through. | 0:15:56 | 0:15:58 | |
Planning, which you might not even get in the first instance, | 0:15:58 | 0:16:01 | |
cos there is not enough parking. | 0:16:01 | 0:16:04 | |
Also, you have got to think about lenders. | 0:16:04 | 0:16:06 | |
Lenders are very reluctant to lend for residential above, | 0:16:06 | 0:16:10 | |
commercial units below. So there are lots of things to think about. | 0:16:10 | 0:16:14 | |
What I would suggest is just do a little bit of research. | 0:16:14 | 0:16:18 | |
# Every time it rains | 0:16:18 | 0:16:20 | |
# It rains pennies from heaven. # | 0:16:20 | 0:16:24 | |
'I love that tune. | 0:16:24 | 0:16:25 | |
'Anyway, to find out if my idea was ever likely to fly, | 0:16:25 | 0:16:28 | |
'we have asked along an agent from the auction house that sold it. | 0:16:28 | 0:16:32 | |
'First, what does he think of the retail space?' | 0:16:32 | 0:16:35 | |
Impressed by the 4,000 square feet of the two retail units, | 0:16:35 | 0:16:39 | |
and its prominent position on the high street. | 0:16:39 | 0:16:43 | |
'And what about going up? | 0:16:43 | 0:16:44 | |
'Is there potential to expand?' | 0:16:44 | 0:16:46 | |
I feel there could be an option for the owner to maybe develop some | 0:16:47 | 0:16:50 | |
apartments above, but that would always be usual, | 0:16:50 | 0:16:52 | |
subject to planning consent. | 0:16:52 | 0:16:54 | |
'Let's get some figures for the premises as it stands currently. | 0:16:55 | 0:16:59 | |
'What could be the rental potential here?' | 0:16:59 | 0:17:02 | |
Probably likely to achieve a combined rental of probably | 0:17:02 | 0:17:05 | |
in the region of ?15,000 to ?16,000. | 0:17:05 | 0:17:09 | |
'And if the new buyer decided to sell on, | 0:17:09 | 0:17:11 | |
'how much could these units fetch on the resale market?' | 0:17:11 | 0:17:14 | |
If they were to sell the whole lot, | 0:17:14 | 0:17:16 | |
with a joined combined rent for the three units, | 0:17:16 | 0:17:20 | |
I would feel the property is likely to achieve in excess of ?200,000. | 0:17:20 | 0:17:24 | |
This is a good size commercial unit. | 0:17:26 | 0:17:29 | |
Part of it is already being let out to the bookies, | 0:17:29 | 0:17:31 | |
so if it is working for you, I'd leave that alone. | 0:17:31 | 0:17:34 | |
This part here, for me, is crying out to be in two parts. | 0:17:34 | 0:17:38 | |
I've also looked around the area, | 0:17:38 | 0:17:40 | |
and I've seen that some of the buildings have got another floor, | 0:17:40 | 0:17:43 | |
so the potential to develop this place further is great. | 0:17:43 | 0:17:46 | |
It is a really good project to get hold of. | 0:17:46 | 0:17:49 | |
Let's see who saw its potential when it went under the hammer. | 0:17:49 | 0:17:52 | |
AUCTIONEER: Two retail units, part let, part vacant. | 0:17:53 | 0:17:56 | |
Start me where you like with this one. | 0:17:56 | 0:17:58 | |
155? | 0:17:58 | 0:18:00 | |
Who's got 150? | 0:18:00 | 0:18:02 | |
145 to start me? | 0:18:02 | 0:18:04 | |
145? | 0:18:04 | 0:18:06 | |
40? 140, thank you. | 0:18:06 | 0:18:08 | |
?140,000 is the opening bid. | 0:18:08 | 0:18:10 | |
'This lot was slow out of the blocks, | 0:18:11 | 0:18:13 | |
'but the price did creep higher, with two bidders - | 0:18:13 | 0:18:16 | |
'one in the room and one on the phone - | 0:18:16 | 0:18:18 | |
'both determined to come out on top. | 0:18:18 | 0:18:20 | |
'We rejoined with the latest bid at 175 grand.' | 0:18:22 | 0:18:26 | |
175? | 0:18:26 | 0:18:28 | |
175. | 0:18:28 | 0:18:30 | |
175, 176. | 0:18:31 | 0:18:33 | |
176,000. | 0:18:34 | 0:18:37 | |
177. | 0:18:37 | 0:18:38 | |
Over to you. | 0:18:38 | 0:18:39 | |
177. | 0:18:39 | 0:18:41 | |
178? | 0:18:41 | 0:18:43 | |
?177,000. | 0:18:43 | 0:18:45 | |
Is that definite? Once, twice, third opportunity... | 0:18:45 | 0:18:50 | |
GAVEL BANGS Sold at 177, thank you. | 0:18:50 | 0:18:52 | |
'It was Jaz with that successful bid of ?177,000. | 0:18:57 | 0:19:02 | |
'Together with brother Manny, | 0:19:02 | 0:19:04 | |
'they run a small chain of funeral directors around the Midlands, | 0:19:04 | 0:19:07 | |
'and this was their fourth property. | 0:19:07 | 0:19:09 | |
'We caught up with them for a chat to find out more.' | 0:19:09 | 0:19:14 | |
Jaz, nice to meet you. And yourself. Manny, same to you. | 0:19:14 | 0:19:16 | |
Congratulations to you both. | 0:19:16 | 0:19:18 | |
Thank you very much. Tell me why this property, then. | 0:19:18 | 0:19:20 | |
I think the demographics, location etc, | 0:19:20 | 0:19:23 | |
fits in with our business model, how we're currently going. | 0:19:23 | 0:19:26 | |
More so the location. | 0:19:26 | 0:19:27 | |
OK. Was it this size of property you were looking for? | 0:19:27 | 0:19:30 | |
We were looking for something a bit smaller but... | 0:19:30 | 0:19:32 | |
we got something a bit bigger, value for money, really. | 0:19:32 | 0:19:35 | |
And you happy with what you paid for it? | 0:19:35 | 0:19:37 | |
Definitely. I think we definitely got value for money. | 0:19:37 | 0:19:39 | |
Yeah, there is a chance for some decent income here, isn't there? | 0:19:39 | 0:19:42 | |
Cos you have already got... Part of it is already rented, isn't it? | 0:19:42 | 0:19:45 | |
Yeah, a very good tenant who are already interested in extending | 0:19:45 | 0:19:48 | |
their lease, which is absolutely music to our ears. | 0:19:48 | 0:19:50 | |
Oh, well done, well done! | 0:19:50 | 0:19:52 | |
Have you had a chat with them? | 0:19:52 | 0:19:54 | |
Yes, we've had an initial chat, | 0:19:54 | 0:19:56 | |
talking figures and lengths of contracts, | 0:19:56 | 0:19:58 | |
and they are happy to stay. | 0:19:58 | 0:20:00 | |
We just need to get that contract signed now! | 0:20:00 | 0:20:02 | |
THEY LAUGH | 0:20:02 | 0:20:03 | |
# Signed on the dotted line | 0:20:03 | 0:20:06 | |
# It's gonna work out fine. # | 0:20:06 | 0:20:09 | |
'That is an excellent start. | 0:20:10 | 0:20:12 | |
'With some guaranteed long-term rental coming in, | 0:20:12 | 0:20:14 | |
'the brothers can concentrate | 0:20:14 | 0:20:16 | |
'on getting the business up and running.' | 0:20:16 | 0:20:17 | |
So what special requirements are you going to have to put in here | 0:20:19 | 0:20:22 | |
for a funeral home? Within this space that we are in now, | 0:20:22 | 0:20:24 | |
we are hopefully splitting into smaller rooms, so office space, | 0:20:24 | 0:20:29 | |
arrangement areas. | 0:20:29 | 0:20:30 | |
We wish to get a mortuary in this space also. | 0:20:30 | 0:20:33 | |
And then we've also got the back unit. | 0:20:33 | 0:20:35 | |
That is where the refrigeration units, etc, will be going, | 0:20:35 | 0:20:38 | |
and a mortuary space for the staff. | 0:20:38 | 0:20:40 | |
There will be two kind of waiting areas, reception areas | 0:20:40 | 0:20:43 | |
within this space, and chapels of rest. | 0:20:43 | 0:20:46 | |
We have already got, like, a split wall in between the two units. | 0:20:46 | 0:20:49 | |
We will put a shop front in and make that another rental unit. | 0:20:49 | 0:20:53 | |
OK, so tell me what kind of commercial units are you going | 0:20:53 | 0:20:56 | |
to put on the other side of the building? Well, hopefully, | 0:20:56 | 0:21:00 | |
we've got a couple of interested parties that want to come and look | 0:21:00 | 0:21:02 | |
at it. I think for the near future, probably section it off, | 0:21:02 | 0:21:07 | |
get some interested parties in, and see what they want to do with it. | 0:21:07 | 0:21:10 | |
And how much is all this going to cost, Manny? | 0:21:10 | 0:21:13 | |
Well, it's... Big question! Big question. | 0:21:13 | 0:21:15 | |
We are thinking around about ?60,000. | 0:21:15 | 0:21:17 | |
OK. That is what we are budgeting. | 0:21:17 | 0:21:19 | |
But we are going to aim to go way under that! | 0:21:19 | 0:21:22 | |
THEY LAUGH | 0:21:22 | 0:21:24 | |
We have got a ?60,000 budget, and we will see how it goes. | 0:21:24 | 0:21:29 | |
Your timescale - how long is it going to take? | 0:21:29 | 0:21:31 | |
Well, we're hoping five months, we can get it turned over, | 0:21:31 | 0:21:35 | |
which I think we should be able to do, | 0:21:35 | 0:21:38 | |
I say comfortably, but you never know. | 0:21:38 | 0:21:40 | |
But comfortably within five months. | 0:21:40 | 0:21:41 | |
OK, and who's going to do the work for you? | 0:21:41 | 0:21:44 | |
What we'd like to do is use local tradesmen, | 0:21:44 | 0:21:46 | |
so people from the local area. | 0:21:46 | 0:21:48 | |
I think that is part of our business model as well. | 0:21:48 | 0:21:51 | |
The areas that we go into, | 0:21:51 | 0:21:52 | |
hopefully we can give back into that economy, of that city, | 0:21:52 | 0:21:55 | |
so we will be using local tradesmen around Derby. | 0:21:55 | 0:21:58 | |
That is good. Keep the money in the area. Exactly. | 0:21:58 | 0:22:00 | |
So, have you thought about building up? | 0:22:00 | 0:22:03 | |
Yes, so when we'd actually seen the site and we looked around the local | 0:22:03 | 0:22:07 | |
streets, everybody's got two storeys, | 0:22:07 | 0:22:09 | |
so I think definitely got potential to go up. | 0:22:09 | 0:22:12 | |
And what would you want to put up there if that was the case? | 0:22:12 | 0:22:16 | |
We were thinking maybe residential flats, | 0:22:16 | 0:22:20 | |
we might even go to make an office accommodation upstairs | 0:22:20 | 0:22:24 | |
for our will side of the business. | 0:22:24 | 0:22:26 | |
We do wills and probates for our legal sector, | 0:22:26 | 0:22:28 | |
to maybe take that upstairs, so maybe move that upstairs. | 0:22:28 | 0:22:31 | |
That would nudge the budget up slightly, wouldn't it? | 0:22:31 | 0:22:34 | |
Oh, substantially, yes! | 0:22:34 | 0:22:35 | |
We will get downstairs done first, and then have a cup of tea | 0:22:35 | 0:22:39 | |
and a break, and then we will see what happens upstairs! | 0:22:39 | 0:22:42 | |
It is nice to have the options, though, Manny, isn't it? | 0:22:42 | 0:22:44 | |
Definitely, and it will add value to the property as well. | 0:22:44 | 0:22:47 | |
'The funeral directors business was set up in 2013, | 0:22:51 | 0:22:55 | |
'and mainly serves the Asian community. | 0:22:55 | 0:22:59 | |
'I was intrigued to find out how they started.' | 0:22:59 | 0:23:01 | |
It started maybe ten years ago when my grandad passed away. | 0:23:01 | 0:23:05 | |
And at the time, we were not 100% satisfied with the level of service | 0:23:06 | 0:23:10 | |
that we received, so that kind of put a seed in my mind. | 0:23:10 | 0:23:15 | |
Once I had finished university, | 0:23:15 | 0:23:16 | |
and I had come out and had a bit of thinking time, | 0:23:16 | 0:23:19 | |
and my brother as well, we had a passion | 0:23:19 | 0:23:22 | |
for helping the community, helping people, | 0:23:22 | 0:23:24 | |
and this kind of lined in quite well. | 0:23:24 | 0:23:27 | |
And an opportunity came up, | 0:23:27 | 0:23:29 | |
and we almost fell into the business rather than... | 0:23:29 | 0:23:33 | |
It kind of chose us. | 0:23:33 | 0:23:35 | |
'Jaz and Manny have a calling at helping others in difficult times. | 0:23:35 | 0:23:39 | |
'So what is it they want to achieve with this property?' | 0:23:39 | 0:23:42 | |
We want a place where, if somebody walks through the door, | 0:23:44 | 0:23:47 | |
they have that peace of mind, reassurance, | 0:23:47 | 0:23:49 | |
that they've come into this place and they can grieve properly. Yes. | 0:23:49 | 0:23:51 | |
So we've taken that all into context, | 0:23:51 | 0:23:53 | |
and we are trying to build a facility here for the local people | 0:23:53 | 0:23:57 | |
of Derby, so at their point of | 0:23:57 | 0:24:00 | |
bereavement, they can come in here and feel reassured. | 0:24:00 | 0:24:03 | |
Good on you. I wish you both good luck. | 0:24:03 | 0:24:05 | |
Jaz, good luck, pal. | 0:24:05 | 0:24:07 | |
Good luck to you. Manny, good luck. Thank you. | 0:24:07 | 0:24:09 | |
So, Jaz and Manny have bought this place for a specific reason - | 0:24:12 | 0:24:15 | |
for their business - they're funeral directors. | 0:24:15 | 0:24:18 | |
I do like that they are going to be renting out the other parts | 0:24:18 | 0:24:21 | |
of the building, and I also like | 0:24:21 | 0:24:22 | |
that they are going to be using local tradesmen. | 0:24:22 | 0:24:25 | |
?60,000 and five months. | 0:24:25 | 0:24:28 | |
You can find out how they do later in the programme. | 0:24:28 | 0:24:30 | |
'Still to come, this ground-floor flat | 0:24:32 | 0:24:35 | |
'in Telford is anything but a-DOOR-able.' | 0:24:35 | 0:24:38 | |
I think it is fair to say you might need a new door. | 0:24:38 | 0:24:40 | |
It is a bit of a hotch-potch. | 0:24:40 | 0:24:41 | |
'And we will find out if Jaz and Manny achieve their goal.' | 0:24:43 | 0:24:46 | |
The biggest hurdle that we found was trying to juggle our work along | 0:24:46 | 0:24:50 | |
with managing this project. | 0:24:50 | 0:24:51 | |
'Back now to the small town of Coulsdon, | 0:24:55 | 0:24:57 | |
'in the far southern reaches of the Greater London boundary, | 0:24:57 | 0:25:00 | |
'where Lucy saw this 1930s semi.' | 0:25:00 | 0:25:03 | |
'First impressions were so-so, | 0:25:05 | 0:25:07 | |
'but inside the house, it was more seesaw.' | 0:25:07 | 0:25:11 | |
Look how the window is on the slant, and even walking in here, | 0:25:11 | 0:25:15 | |
you feel a little bit like you just want to keep doing that. | 0:25:15 | 0:25:18 | |
'All the signs pointed to subsidence, | 0:25:19 | 0:25:22 | |
'but if you could see past the problems, | 0:25:22 | 0:25:24 | |
'there was a lot of potential in this spacious 1930s accommodation, | 0:25:24 | 0:25:28 | |
'as well as a generous garden with scope to extend. | 0:25:28 | 0:25:31 | |
'But upstairs, try as you might to forget, | 0:25:32 | 0:25:35 | |
'there was no getting away from those cracks.' | 0:25:35 | 0:25:37 | |
Look at that crack! | 0:25:39 | 0:25:42 | |
And they do say, if you can fit your hand inside - | 0:25:42 | 0:25:46 | |
look, I can literally fit my hand between the bricks in there - | 0:25:46 | 0:25:49 | |
it is doubly, triply serious. | 0:25:49 | 0:25:51 | |
'It was no small task, | 0:25:52 | 0:25:54 | |
'but that did not put off professional property developers, | 0:25:54 | 0:25:57 | |
'and husband and wife, Chris and Pauline, | 0:25:57 | 0:26:00 | |
'who bought the house for 388 grand. | 0:26:00 | 0:26:03 | |
'Well, it didn't put Chris off, anyway.' | 0:26:03 | 0:26:05 | |
We had gone to France skiing over Easter, came back, | 0:26:06 | 0:26:09 | |
I took Molly up to Manchester to stay with my sister, | 0:26:09 | 0:26:12 | |
and he went to viewings and decided that it was just a wee crack | 0:26:12 | 0:26:16 | |
in the house, it was nothing to be worried about. | 0:26:16 | 0:26:18 | |
It was just a wee... | 0:26:18 | 0:26:20 | |
I thought a bit of Polyfilla will fix... ..hairline crack! | 0:26:20 | 0:26:24 | |
Anyway, I come in here, it's like the San Andreas Fault. | 0:26:24 | 0:26:26 | |
'No matter whose FAULT it was, | 0:26:28 | 0:26:30 | |
'it was time to get - dare I say it? - cracking. | 0:26:30 | 0:26:33 | |
'And while the couple had a healthy budget of 120,000 to 150,000, | 0:26:33 | 0:26:38 | |
'they also had to cover an extension and loft conversion, | 0:26:38 | 0:26:41 | |
'all within a timescale of 9 to 12 months.' | 0:26:41 | 0:26:44 | |
'Well, one year on, we are back.' | 0:26:46 | 0:26:48 | |
'That is a great start, that massive tree has been cleared, | 0:26:50 | 0:26:54 | |
'and there is now a tiered garden with plenty of parking.' | 0:26:54 | 0:26:57 | |
'What's more, inside is looking positively smashing.' | 0:27:00 | 0:27:04 | |
'Chris and Pauline's builders have knocked through the former lounge, | 0:27:08 | 0:27:12 | |
'and added an extension | 0:27:12 | 0:27:13 | |
'to make an absolutely stunning family living space. | 0:27:13 | 0:27:17 | |
'They knocked down the garage, | 0:27:18 | 0:27:19 | |
'and in its place is a generous utility room and a handy WC.' | 0:27:19 | 0:27:24 | |
'As for the front, well, it's looking just as chic. | 0:27:27 | 0:27:29 | |
'And of course, no more cracks.' | 0:27:29 | 0:27:31 | |
'Let's hope the subsidence wasn't too tricky to fix.' | 0:27:33 | 0:27:37 | |
Originally, we thought it was probably a subsidence issue related | 0:27:37 | 0:27:40 | |
to the big trees out front. | 0:27:40 | 0:27:41 | |
But once we started digging up the driveway, | 0:27:41 | 0:27:43 | |
we discovered the drain from the bathroom was literally disconnected | 0:27:43 | 0:27:47 | |
by about that much. | 0:27:47 | 0:27:48 | |
So every time they flushed the toilet or emptied the bath, | 0:27:48 | 0:27:51 | |
the water washed underneath the concrete driveway. | 0:27:51 | 0:27:53 | |
It washed all the soil away and just took away the foundations | 0:27:53 | 0:27:57 | |
of the house, so it slipped down a little bit. | 0:27:57 | 0:27:59 | |
So as soon as we reconnected it, | 0:27:59 | 0:28:01 | |
put in a bit of support under all the walls... | 0:28:01 | 0:28:05 | |
..no problem any more. | 0:28:06 | 0:28:08 | |
'Well, subsidence can have many causes | 0:28:08 | 0:28:10 | |
'and drains are common culprits. | 0:28:10 | 0:28:13 | |
'The couple used the resin injection technique | 0:28:13 | 0:28:16 | |
'to strengthen the house's foundations. | 0:28:16 | 0:28:19 | |
'They made good on their plans to extend and level the house, | 0:28:19 | 0:28:22 | |
'but did they manage that loft extension?' | 0:28:22 | 0:28:24 | |
'Well, what did you expect? Of course they did. | 0:28:27 | 0:28:30 | |
'And marvellous it is, too, complete with en-suite shower room.' | 0:28:30 | 0:28:34 | |
'The rest of the bedrooms are just as stylish, | 0:28:39 | 0:28:41 | |
'thanks to Pauline's interior decor skills. | 0:28:41 | 0:28:44 | |
'Meanwhile, Chris was project manager, and tackled the rewire, | 0:28:45 | 0:28:49 | |
'but had the work signed off by a registered sparky, | 0:28:49 | 0:28:53 | |
'which, do remember, is the law. | 0:28:53 | 0:28:54 | |
'They are a perfect team, but did everything else go smoothly?' | 0:28:57 | 0:29:00 | |
The worst was planning. | 0:29:01 | 0:29:03 | |
Planning was the biggest problem, wasn't it? | 0:29:03 | 0:29:05 | |
Yeah, planning delayed us. | 0:29:05 | 0:29:07 | |
The brief I gave myself for the house was to try and match next door | 0:29:07 | 0:29:11 | |
as much as possible. We even had the same architect. | 0:29:11 | 0:29:14 | |
All he had to do was take his plans, turn them over, and go, | 0:29:14 | 0:29:17 | |
"There you go, that's your plans." | 0:29:17 | 0:29:18 | |
But when we put them in to the planning permission, | 0:29:18 | 0:29:21 | |
we got turned down. | 0:29:21 | 0:29:23 | |
So we had to appeal the planning permission, | 0:29:23 | 0:29:25 | |
so six weeks for planning permission, | 0:29:25 | 0:29:27 | |
then the appeal took about 14 weeks. | 0:29:27 | 0:29:29 | |
And then, yeah, we finally got approved on the appeal, | 0:29:31 | 0:29:34 | |
but, as I say, the 14-week delay was not a good thing. | 0:29:34 | 0:29:40 | |
We just plodded along the whole project. | 0:29:40 | 0:29:42 | |
'Despite the delays with planning, they came in on schedule, | 0:29:42 | 0:29:46 | |
'but it did contribute to an overspend of ?15,000. | 0:29:46 | 0:29:50 | |
'They spent ?165,000 overall. | 0:29:50 | 0:29:53 | |
'But Chris and daughter Molly don't look too worried, | 0:29:53 | 0:29:56 | |
'so what is the best bit of this fabulous house?' | 0:29:56 | 0:29:59 | |
It's over... | 0:30:01 | 0:30:02 | |
..I think. It has been going on for so long and it was so tedious, but, | 0:30:04 | 0:30:08 | |
you know, now, looking at it, you think, | 0:30:08 | 0:30:10 | |
"Yeah, it is a great family house now." | 0:30:10 | 0:30:12 | |
I would live in it, and that is the benchmark. | 0:30:12 | 0:30:14 | |
"Would I live in it?" "Yeah." | 0:30:14 | 0:30:16 | |
And my daughter would definitely live in it, she loves it, | 0:30:16 | 0:30:18 | |
she wants to move in. | 0:30:18 | 0:30:19 | |
'Well, join the queue, Molly, | 0:30:21 | 0:30:23 | |
'because I think this house could prove very popular indeed. | 0:30:23 | 0:30:26 | |
'Let's see what two local estate agents thought | 0:30:26 | 0:30:28 | |
'of Chris and Pauline's ?553,000 investment, | 0:30:28 | 0:30:32 | |
'starting with the agent who saw it prior to work starting.' | 0:30:32 | 0:30:35 | |
I think the property is fantastic. | 0:30:38 | 0:30:41 | |
Really got the wow factor. | 0:30:41 | 0:30:42 | |
I walked in, and I just thought, "Oh, my gosh, it is beautiful." | 0:30:42 | 0:30:46 | |
They have done a stunning job, to be honest with you. | 0:30:46 | 0:30:49 | |
And I do not often say that in property terms. | 0:30:49 | 0:30:52 | |
They really have done a high-end finish to it, above average. | 0:30:52 | 0:30:56 | |
The only negative I would say | 0:30:56 | 0:30:59 | |
is probably that it is based on a main road. | 0:30:59 | 0:31:01 | |
Now, some people will like that, and some people, it won't bother them, | 0:31:01 | 0:31:04 | |
but other people it will, but I think, as soon as they step through | 0:31:04 | 0:31:07 | |
the front door, and see what the property has to offer, | 0:31:07 | 0:31:10 | |
they are going to fall in love. | 0:31:10 | 0:31:11 | |
'But will Chris and Pauline love the values? | 0:31:11 | 0:31:14 | |
'After all, they have invested ?553,000.' | 0:31:14 | 0:31:20 | |
Because of the standard of finish and the good accommodation, | 0:31:20 | 0:31:24 | |
I would put it in a price range | 0:31:24 | 0:31:27 | |
of ?625,000 to ?650,000. | 0:31:27 | 0:31:31 | |
I think, resale value, | 0:31:31 | 0:31:32 | |
you will be looking at somewhere between ?625,000 to ?650,000. | 0:31:32 | 0:31:38 | |
That's all right. Yeah! Yeah, that's all right, actually, | 0:31:38 | 0:31:40 | |
I'm pleased with that. 'No wonder Pauline is pleased. | 0:31:40 | 0:31:43 | |
'That is a potential profit of ?97,000, minus taxes and fees, | 0:31:43 | 0:31:47 | |
'which will come in handy, | 0:31:47 | 0:31:48 | |
'as they have already bought their next project. | 0:31:48 | 0:31:51 | |
'So, here's to a long and happy career in developing.' | 0:31:51 | 0:31:54 | |
We will do all this until Molly finishes uni, and then... | 0:31:56 | 0:32:00 | |
FINISHES uni? STARTS uni! No, no, no, starts uni! | 0:32:00 | 0:32:02 | |
Starts uni! And then we quit, and then we just go on holiday forever. | 0:32:02 | 0:32:07 | |
Just the two of us. Yeah. No children. | 0:32:09 | 0:32:12 | |
'Telford in Shropshire was built in the 1960s and '70s, | 0:32:18 | 0:32:22 | |
'but it's actually named after one of my fellow Scots, | 0:32:22 | 0:32:25 | |
'Thomas Telford, the renowned engineer designed roads, canals | 0:32:25 | 0:32:29 | |
'and bridges, both here and in Scotland in the 18th century.' | 0:32:29 | 0:32:33 | |
The property I am here to see is on this estate. | 0:32:35 | 0:32:37 | |
It is three miles from the town centre, | 0:32:37 | 0:32:40 | |
and it is really well serviced, | 0:32:40 | 0:32:41 | |
with lots of shops and schools nearby. | 0:32:41 | 0:32:44 | |
This is it, it is a one-bedroom flat with a guide price of ?34,000. | 0:32:44 | 0:32:49 | |
Let's have a gander. | 0:32:49 | 0:32:50 | |
OK, into the hallway. | 0:33:00 | 0:33:02 | |
My initial thought is it could do with a bit of a wash. | 0:33:02 | 0:33:06 | |
Sometimes that makes all the difference. | 0:33:06 | 0:33:08 | |
There are loads of stains on the doors, | 0:33:08 | 0:33:10 | |
and needs a good lick of paint. | 0:33:10 | 0:33:11 | |
The bathroom is a decent size. | 0:33:11 | 0:33:14 | |
There is no shower there. | 0:33:14 | 0:33:15 | |
You would definitely need that to come out, | 0:33:15 | 0:33:17 | |
so completely new bathroom, | 0:33:17 | 0:33:19 | |
put your shower in the bath... | 0:33:19 | 0:33:21 | |
..and then on this side, you have a decent sized bedroom, | 0:33:22 | 0:33:26 | |
and your reception room - I will come to those a bit later. | 0:33:26 | 0:33:28 | |
An airing cupboard at the end of the hall, OK. | 0:33:28 | 0:33:32 | |
And into the kitchen, good size. | 0:33:32 | 0:33:35 | |
Again, needs to come out. | 0:33:35 | 0:33:37 | |
It's tired. You have got the swirls on the ceiling, | 0:33:37 | 0:33:41 | |
which really tells you how long ago this was decorated. | 0:33:41 | 0:33:44 | |
It was all the rage at one point, a good few decades ago - | 0:33:44 | 0:33:47 | |
the textured wallpaper. | 0:33:47 | 0:33:49 | |
But this kitchen strikes me as an awkward shape, | 0:33:49 | 0:33:52 | |
it is like an L shape and I am thinking... | 0:33:52 | 0:33:55 | |
This is a stud wall, so you have your airing cupboard in here, | 0:33:55 | 0:33:59 | |
a stud wall, which means it wouldn't be too much of a job to take this | 0:33:59 | 0:34:03 | |
down and open up this kitchen. | 0:34:03 | 0:34:06 | |
And people do like an open-plan kitchen area. | 0:34:06 | 0:34:09 | |
Yes, you would be losing a cupboard, | 0:34:09 | 0:34:11 | |
but you would be gaining some really nice space. | 0:34:11 | 0:34:15 | |
Often in a one-bed like this, | 0:34:15 | 0:34:17 | |
there is not much potential to change anything, really, | 0:34:17 | 0:34:19 | |
but there is a wee scope for potential right there. | 0:34:19 | 0:34:22 | |
# This must be the kitchen of my dreams | 0:34:22 | 0:34:26 | |
# Take a seat in this dream kitchen | 0:34:26 | 0:34:29 | |
# You can wipe your feet and dry your hair | 0:34:29 | 0:34:33 | |
# And if you make a wish in this dream kitchen... # | 0:34:33 | 0:34:37 | |
I think it's fair to say you might need a new door. | 0:34:38 | 0:34:40 | |
It's a bit of a hotch-potch there of holes and makeshift plasterwork. | 0:34:40 | 0:34:44 | |
In our one and only bedroom, it's good to see you've got | 0:34:44 | 0:34:47 | |
double glazing, central heating. It's a good size. | 0:34:47 | 0:34:50 | |
So you wouldn't struggle to get everything you need in here, | 0:34:50 | 0:34:53 | |
your double bed, your wardrobe. | 0:34:53 | 0:34:54 | |
You've got an electric meter in your bedroom. | 0:34:54 | 0:34:56 | |
You might prefer it in the hall, but I guess it is where it is. | 0:34:56 | 0:35:00 | |
And then on the same side of the flat you have your reception area. | 0:35:00 | 0:35:05 | |
Again, a decent size. | 0:35:05 | 0:35:08 | |
And I can't see too many problems. | 0:35:08 | 0:35:11 | |
Well, there is a wee spot of damp just there, | 0:35:11 | 0:35:14 | |
but my guess would be that's due to bad ventilation | 0:35:14 | 0:35:17 | |
and nobody living here for quite a while. | 0:35:17 | 0:35:19 | |
But all in all, you have a good find here, | 0:35:19 | 0:35:22 | |
if you are willing to put in a bit of graft. | 0:35:22 | 0:35:24 | |
It's amazing what elbow grease can do. | 0:35:24 | 0:35:26 | |
A good clean, paint, new kitchen, new bathroom, | 0:35:26 | 0:35:29 | |
and, yes, you could have a solid one-bedroom flat. | 0:35:29 | 0:35:32 | |
'We asked an agent from the auctioneers who sold the property - | 0:35:35 | 0:35:39 | |
'guided at 34 grand - to come and give us some information | 0:35:39 | 0:35:41 | |
'about the market here.' | 0:35:41 | 0:35:43 | |
In terms of the area, I think you're close to all local amenities. | 0:35:44 | 0:35:47 | |
You have got schools, shops, bus links, major road links. | 0:35:47 | 0:35:51 | |
So you are close to everything. | 0:35:51 | 0:35:53 | |
'Once refurbished, what sort of rental could this property command?' | 0:35:53 | 0:35:57 | |
For the rental market, I'd probably recommend somewhere in the region of | 0:35:57 | 0:36:00 | |
?395 per calendar month. | 0:36:00 | 0:36:03 | |
'And on the sales market?' | 0:36:04 | 0:36:05 | |
You are probably looking around ?45,000 to ?50,000. | 0:36:06 | 0:36:10 | |
This is a well built one-bedroom flat, | 0:36:12 | 0:36:15 | |
and it's in a really good rental area. | 0:36:15 | 0:36:17 | |
So, it could be a very good investment for someone. | 0:36:17 | 0:36:20 | |
Let's find out who agreed when it went under the hammer. | 0:36:20 | 0:36:22 | |
AUCTIONEER: Back in Telford, | 0:36:24 | 0:36:26 | |
ground floor flat with one bedroom. | 0:36:26 | 0:36:28 | |
30,000, on we go. | 0:36:28 | 0:36:30 | |
30,000 I am bid. | 0:36:32 | 0:36:33 | |
At 30. At 30,000 I am bid. | 0:36:33 | 0:36:35 | |
Is it one? At 30. | 0:36:35 | 0:36:37 | |
One. | 0:36:37 | 0:36:39 | |
Two. At 32. | 0:36:39 | 0:36:40 | |
Three. | 0:36:40 | 0:36:42 | |
34 now. | 0:36:42 | 0:36:44 | |
At 33,000 for the flat... | 0:36:44 | 0:36:45 | |
34? | 0:36:47 | 0:36:49 | |
At 34,000. | 0:36:49 | 0:36:50 | |
Is it 35? | 0:36:50 | 0:36:52 | |
Bid's against you in the corner. | 0:36:52 | 0:36:54 | |
I'll take a half if it will help. | 0:36:54 | 0:36:56 | |
34 and a half. | 0:36:56 | 0:36:58 | |
35. | 0:36:58 | 0:37:00 | |
Another half at 35. | 0:37:00 | 0:37:02 | |
No, he says. | 0:37:02 | 0:37:04 | |
For the first time of asking at 35. | 0:37:04 | 0:37:06 | |
And the second. | 0:37:06 | 0:37:08 | |
All done, then. | 0:37:08 | 0:37:09 | |
The third time of asking, 35,000 and selling. | 0:37:09 | 0:37:12 | |
GAVEL BANGS | 0:37:12 | 0:37:13 | |
Thank you, sir. Well done, you've bought it. | 0:37:13 | 0:37:15 | |
'Paying just 1,000 over the guide and getting the flat for 35 grand | 0:37:15 | 0:37:20 | |
'were Aidan and Ian. They each have their own property letting companies | 0:37:20 | 0:37:24 | |
'but have set themselves up in a joint venture | 0:37:24 | 0:37:27 | |
'to renovate properties. | 0:37:27 | 0:37:29 | |
'They are familiar with this estate, | 0:37:29 | 0:37:31 | |
'having bought properties here already. | 0:37:31 | 0:37:33 | |
'So, time to find out what they have planned here.' | 0:37:33 | 0:37:36 | |
Ian, Aidan? Aidan. | 0:37:37 | 0:37:39 | |
Aidan! Pleased to meet you, Aidan. And pleased to meet you, Ian. | 0:37:39 | 0:37:42 | |
Congratulations on your recent purchase. | 0:37:42 | 0:37:44 | |
Now, where is that accent from? | 0:37:44 | 0:37:46 | |
Dumfries and Galloway. Dumfries and Galloway! | 0:37:48 | 0:37:50 | |
So what brings you down here? | 0:37:50 | 0:37:51 | |
We met each other a couple of years ago and got on really well. | 0:37:51 | 0:37:55 | |
Thought it'd be a good idea to bring our skills together. | 0:37:55 | 0:37:58 | |
Because it sounds like you were doing pretty well doing your own | 0:37:58 | 0:38:00 | |
things individually, but is part of it just, if you do get on, | 0:38:00 | 0:38:03 | |
it's quite a nice thing to do together? Yeah, definitely. | 0:38:03 | 0:38:06 | |
It's nice to have somebody to bounce off as well. Yeah. | 0:38:06 | 0:38:09 | |
And bigger projects sometimes. | 0:38:09 | 0:38:11 | |
So, what attracted you to this property? | 0:38:11 | 0:38:14 | |
Had you been to see it before auction? | 0:38:14 | 0:38:16 | |
No. No. No! | 0:38:16 | 0:38:18 | |
We know the area. And we know the properties. | 0:38:18 | 0:38:20 | |
What was your feeling when you came in for the first time? | 0:38:20 | 0:38:23 | |
Because you came in as owners. | 0:38:23 | 0:38:25 | |
Well, we had looked through the window, hadn't we? | 0:38:25 | 0:38:28 | |
And, to be honest, we bought another two which was pretty much the same. | 0:38:28 | 0:38:33 | |
Yeah. But, yeah, it's... | 0:38:33 | 0:38:35 | |
..not the best. What are your plans for this? | 0:38:36 | 0:38:38 | |
Is it to rent or to sell on? | 0:38:38 | 0:38:40 | |
We have decided we're going to rent it out. | 0:38:41 | 0:38:43 | |
So we're going to spend some money on it and rent the property out. | 0:38:43 | 0:38:46 | |
Looking around, I was thinking there is a wee bit of space in the airing | 0:38:46 | 0:38:49 | |
cupboard which I guess could make a little bit more room in the kitchen. | 0:38:49 | 0:38:53 | |
Were you thinking along those lines? | 0:38:53 | 0:38:55 | |
Yeah, I think take the wall out there. | 0:38:55 | 0:38:57 | |
Maybe just put a table and chairs there. | 0:38:58 | 0:39:01 | |
To make it a bit more room for a... like a little dining room area. | 0:39:01 | 0:39:05 | |
Nice new kitchen. Nice new kitchen, yeah. | 0:39:05 | 0:39:07 | |
Nice new bathroom. Redec, carpets, make sure the electric's OK. | 0:39:07 | 0:39:11 | |
New doors. New doors. | 0:39:11 | 0:39:13 | |
A nice home for somebody. | 0:39:13 | 0:39:15 | |
Do you have a bit of a game plan, where you think, | 0:39:15 | 0:39:18 | |
when you are at auction, "OK, that is the price, | 0:39:18 | 0:39:20 | |
"I want this rental yield" - | 0:39:20 | 0:39:22 | |
is that what you thought about this property? | 0:39:22 | 0:39:24 | |
Yeah, we had the price in our heads. | 0:39:24 | 0:39:26 | |
We were not going to go over it. | 0:39:26 | 0:39:28 | |
We got it for what we wanted to pay. | 0:39:28 | 0:39:30 | |
What do you plan to spend, what budget do you have? | 0:39:30 | 0:39:34 | |
Three grand? Four at tops. | 0:39:34 | 0:39:36 | |
Yeah. And that will get new kitchen, new bathroom? | 0:39:36 | 0:39:40 | |
New bathroom. Knock the wall down. | 0:39:40 | 0:39:42 | |
Redec, new carpets. | 0:39:42 | 0:39:45 | |
So what is your secret, | 0:39:45 | 0:39:46 | |
because that sounds like that money is going to go quite a long way? | 0:39:46 | 0:39:50 | |
And I think it's interesting for anyone watching. | 0:39:50 | 0:39:54 | |
How do you make your money cover all of that? | 0:39:54 | 0:39:56 | |
What is the secret? Well, we shop around for kitchens | 0:39:56 | 0:40:01 | |
and get the best deal. | 0:40:01 | 0:40:03 | |
So, you know... | 0:40:03 | 0:40:05 | |
And we've got workers that work for us, so... | 0:40:05 | 0:40:09 | |
That's how we keep costs down, really. | 0:40:09 | 0:40:11 | |
And do you bring...? We do it quickly. Do it quickly, yeah. | 0:40:11 | 0:40:13 | |
Two to three weeks, it will be done. | 0:40:13 | 0:40:16 | |
Two to three weeks? Yeah. | 0:40:16 | 0:40:17 | |
That's exciting. Yeah. | 0:40:17 | 0:40:18 | |
Do you have any hands-on graft yourself, | 0:40:18 | 0:40:22 | |
or do you just leave it to everyone else? | 0:40:22 | 0:40:23 | |
Leave it to everyone else. Yeah. Just come in and crack the whip. | 0:40:23 | 0:40:27 | |
'Well, they certainly will be cracking the whip to get this done | 0:40:27 | 0:40:30 | |
'in two to three weeks. However, | 0:40:30 | 0:40:32 | |
'it sounds like Aidan and Ian might want it fast but they want it good | 0:40:32 | 0:40:36 | |
'too, which is always good to hear.' | 0:40:36 | 0:40:38 | |
I think it's really important to present a property | 0:40:40 | 0:40:43 | |
that you would pretty much want to live in it yourself. | 0:40:43 | 0:40:46 | |
So that the tenant, what I find is, looks after it. | 0:40:46 | 0:40:50 | |
And they do, if you give them something nice that is showing them | 0:40:50 | 0:40:54 | |
respect, and that is in return, it's given back to you, | 0:40:54 | 0:40:56 | |
so, yeah, definitely. | 0:40:56 | 0:40:58 | |
You say you know this area well. | 0:40:58 | 0:41:00 | |
Is this the area you have stuck to for buying property so far? | 0:41:00 | 0:41:04 | |
No. We have done other estates | 0:41:04 | 0:41:08 | |
and we have also done detached properties. | 0:41:08 | 0:41:13 | |
We work with landlords, | 0:41:13 | 0:41:14 | |
who just want us to do properties up for them. | 0:41:14 | 0:41:17 | |
But I'd say at the moment, predominantly Shropshire. | 0:41:17 | 0:41:21 | |
Yeah. We are always looking out for a deal. | 0:41:21 | 0:41:24 | |
And you want to make a quick turnaround, make a quick profit, | 0:41:24 | 0:41:26 | |
so that you can build a bit of an empire together? Yeah. Yeah. | 0:41:26 | 0:41:29 | |
Try and take over the world. | 0:41:29 | 0:41:30 | |
'Apart from the two flats they have already tackled on this estate, | 0:41:32 | 0:41:35 | |
'they have worked in HMOs, convergence, | 0:41:35 | 0:41:38 | |
'renovations and extensions over the last two years. | 0:41:38 | 0:41:41 | |
'Seems there is no stopping these two.' | 0:41:41 | 0:41:43 | |
Do you two get on really well together? | 0:41:45 | 0:41:47 | |
Have you ever, cos you've worked a wee bit together, | 0:41:47 | 0:41:49 | |
ever any disagreements? | 0:41:49 | 0:41:50 | |
No. Not really. | 0:41:50 | 0:41:52 | |
Not at all. We complement each other really well. Yeah. | 0:41:52 | 0:41:54 | |
Do you have nicknames for each other? | 0:41:54 | 0:41:56 | |
Not yet. | 0:41:56 | 0:41:57 | |
Not yet! | 0:41:57 | 0:41:58 | |
Is it all work, work, work for you boys or do you hang out? | 0:42:01 | 0:42:05 | |
No, we are... | 0:42:05 | 0:42:07 | |
We are in a golf society, | 0:42:07 | 0:42:09 | |
so every third Wednesday in the month we go and play golf | 0:42:09 | 0:42:13 | |
all over the country, which is great fun. | 0:42:13 | 0:42:16 | |
And we have gone on holiday together, haven't we? | 0:42:17 | 0:42:20 | |
Yeah. | 0:42:20 | 0:42:21 | |
So, yeah, playing golf. | 0:42:21 | 0:42:24 | |
Hang about quite a bit. The wives don't quite like that. | 0:42:24 | 0:42:27 | |
We seem to get away with it quite well. Yeah. | 0:42:27 | 0:42:29 | |
That's nice that you go on holiday together, with your wives as well? | 0:42:32 | 0:42:36 | |
Sounds a bit of a bromance, it's nice. | 0:42:36 | 0:42:38 | |
A bromance! Yeah! | 0:42:38 | 0:42:40 | |
# Love is in the air... | 0:42:43 | 0:42:45 | |
# Everywhere I look around... | 0:42:46 | 0:42:48 | |
'I'm glad these two are good sports as well as good mates.' | 0:42:48 | 0:42:52 | |
# Love is in the air | 0:42:52 | 0:42:54 | |
# Every sight and every sound... # | 0:42:54 | 0:42:56 | |
Can't wait to see what you do with the place, | 0:42:59 | 0:43:01 | |
and really quickly by the sounds of it. Best of luck. Great to meet you. | 0:43:01 | 0:43:04 | |
And you, Martel. Thanks very much. Thank you, Martel. Thanks. | 0:43:04 | 0:43:08 | |
Aidan and Ian are seasoned property developers, | 0:43:08 | 0:43:11 | |
and this flat should not pose too much of a problem for them. | 0:43:11 | 0:43:13 | |
But what I'm really interested to see is how that blossoming bromance | 0:43:13 | 0:43:17 | |
develops. You can find out later in the show. | 0:43:17 | 0:43:20 | |
Earlier we saw property number one, | 0:43:24 | 0:43:26 | |
but how are the other two getting on? Yes. | 0:43:26 | 0:43:27 | |
Did their best laid plans go well or were they forced to rethink? | 0:43:27 | 0:43:32 | |
Let's find out. | 0:43:32 | 0:43:33 | |
'Now we return to Derby, | 0:43:36 | 0:43:38 | |
'where I had a look at two separate retail units which had a guide price | 0:43:38 | 0:43:42 | |
'of 150 grand.' | 0:43:42 | 0:43:43 | |
'One was already rented out to a bookies, | 0:43:45 | 0:43:48 | |
'but it was the unoccupied part I was interested in.' | 0:43:48 | 0:43:50 | |
Wow! HE LAUGHS | 0:43:52 | 0:43:54 | |
Look at the size of this place. | 0:43:54 | 0:43:56 | |
Yes, you might have to put a lick of paint up and change the flooring | 0:43:56 | 0:44:00 | |
in here, but it is in very good condition. | 0:44:00 | 0:44:03 | |
'With the other unit already bringing in rents, | 0:44:04 | 0:44:07 | |
'this unit looked like it could be split in two. | 0:44:07 | 0:44:10 | |
'And its position on a busy road with promising retail potential | 0:44:10 | 0:44:13 | |
'was encouraging.' | 0:44:13 | 0:44:15 | |
When it comes to making profit, that could be making profit, | 0:44:16 | 0:44:19 | |
this could be making profit | 0:44:19 | 0:44:20 | |
and the bookies already are paying ?6,000 a year. | 0:44:20 | 0:44:25 | |
'And for the more ambitious investor, | 0:44:26 | 0:44:29 | |
'why stop on the ground floor?' | 0:44:29 | 0:44:30 | |
Having walked around the area, | 0:44:30 | 0:44:32 | |
I have noticed that whether it's residential or commercial, | 0:44:32 | 0:44:35 | |
most of the buildings are on two floors. | 0:44:35 | 0:44:37 | |
It says to me this place has the potential to be built on as well. | 0:44:37 | 0:44:42 | |
'It was funeral directors Jaz on the left and his brother Manny | 0:44:44 | 0:44:48 | |
'who brought these premises for ?177,000, | 0:44:48 | 0:44:52 | |
'as part of their business expansion.' | 0:44:52 | 0:44:54 | |
Within this space we are in now, | 0:44:54 | 0:44:56 | |
we hopefully are splitting it into smaller rooms, so office space, | 0:44:56 | 0:45:00 | |
arrangement areas. We wish to get a mortuary in this space also. | 0:45:00 | 0:45:05 | |
'While retaining the existing tenant next door, | 0:45:05 | 0:45:08 | |
'they plan to divide a vacant area into two, | 0:45:08 | 0:45:11 | |
'keeping half for their business and leasing the other half out.' | 0:45:11 | 0:45:14 | |
We have already got, like, a split wall in between the two units. | 0:45:14 | 0:45:18 | |
We will put a shop front in | 0:45:18 | 0:45:19 | |
and make that another rental unit. | 0:45:19 | 0:45:21 | |
'The brothers hope to complete the project within five months, | 0:45:23 | 0:45:26 | |
'and at a cost of no more than 60 grand. | 0:45:26 | 0:45:29 | |
'11 months later, we are back to catch up on their progress.' | 0:45:29 | 0:45:33 | |
'The main development which will house the funeral business | 0:45:44 | 0:45:47 | |
'is almost complete. | 0:45:47 | 0:45:49 | |
'What was a large, open-plan unit has been subdivided, | 0:45:52 | 0:45:56 | |
'but there is still a lot of work to do. | 0:45:56 | 0:45:58 | |
'When complete, they will have created | 0:45:58 | 0:46:00 | |
'the different zones required.' | 0:46:00 | 0:46:02 | |
'These include a large reception, a more intimate family area, | 0:46:03 | 0:46:08 | |
'private offices, a chapel room, and at the back, | 0:46:08 | 0:46:12 | |
'a preparation area and a refrigeration room. | 0:46:12 | 0:46:16 | |
'Next door, the refurbishment of the retail unit is ongoing, | 0:46:16 | 0:46:20 | |
'but it is now completely separate from the rest of the building. | 0:46:20 | 0:46:24 | |
'It has been a busy time for the brothers | 0:46:24 | 0:46:26 | |
'and while Manny takes care of business, | 0:46:26 | 0:46:28 | |
'Jaz has managed to take a bit of time out to explain how this project | 0:46:28 | 0:46:32 | |
'has gone.' | 0:46:32 | 0:46:34 | |
We are probably about three weeks away from actually opening the | 0:46:34 | 0:46:36 | |
doors to the public. There's a few details that are missing. | 0:46:36 | 0:46:39 | |
We are still waiting on some specialist equipment in the mortuary | 0:46:39 | 0:46:42 | |
to be delivered and fitted. | 0:46:42 | 0:46:45 | |
The signage outside still needs to be fitted. | 0:46:45 | 0:46:47 | |
And the rest of things like the furniture, etc, | 0:46:47 | 0:46:49 | |
which will be coming in within the next week. | 0:46:49 | 0:46:51 | |
'Things are obviously not that advanced next door, | 0:46:54 | 0:46:57 | |
'but the pace will be picking up soon. | 0:46:57 | 0:46:59 | |
'And Jaz reckons it won't be empty for much longer.' | 0:46:59 | 0:47:03 | |
We are in negotiations with a restaurant, currently, | 0:47:03 | 0:47:05 | |
who are waiting upon planning permission before we finalise | 0:47:05 | 0:47:09 | |
that rental agreement. | 0:47:09 | 0:47:10 | |
'And the brothers have been true to their ethos | 0:47:11 | 0:47:14 | |
'of using local resources.' | 0:47:14 | 0:47:16 | |
Everything you see around you has been built and bought locally, | 0:47:16 | 0:47:20 | |
and built by local Derbyshire tradesmen. | 0:47:20 | 0:47:23 | |
We've been going through a recruitment process currently, | 0:47:23 | 0:47:25 | |
and we are close to employing some people, | 0:47:25 | 0:47:27 | |
and they will be people locally from the Derbyshire area. | 0:47:27 | 0:47:30 | |
'Looking from the outside, there has been no move to expand upwards, | 0:47:32 | 0:47:37 | |
'but that does not mean it won't happen.' | 0:47:37 | 0:47:39 | |
We've actually had the builders and surveyors out to have a look | 0:47:39 | 0:47:41 | |
at the current structure work. | 0:47:41 | 0:47:43 | |
They actually agree with us that they think it's feasible | 0:47:43 | 0:47:46 | |
to build up, which is fantastic news. | 0:47:46 | 0:47:48 | |
We are actually planning on building a residential site upstairs. | 0:47:48 | 0:47:54 | |
But probably not in the next few years, | 0:47:54 | 0:47:56 | |
so it's a project down the line. | 0:47:56 | 0:47:59 | |
'It has taken 11 months to reach this point, | 0:47:59 | 0:48:01 | |
'more than double their original five-month estimate.' | 0:48:01 | 0:48:04 | |
It has been a slow project. | 0:48:04 | 0:48:07 | |
The biggest hurdle we have found was trying to juggle our work along with | 0:48:07 | 0:48:11 | |
managing this project, | 0:48:11 | 0:48:13 | |
which we probably did not anticipate would take so long. | 0:48:13 | 0:48:16 | |
'And how about juggling that budget? | 0:48:16 | 0:48:18 | |
'Originally, they hoped to spend under 60 grand.' | 0:48:18 | 0:48:21 | |
We have been very good with our budget. | 0:48:23 | 0:48:25 | |
We are currently on about ?45,000. | 0:48:25 | 0:48:27 | |
We are anticipating another probably ?5,000 that we'll be spending | 0:48:27 | 0:48:32 | |
in the next couple of weeks. We will still be under, | 0:48:32 | 0:48:35 | |
significantly under the budget that we first anticipated. | 0:48:35 | 0:48:38 | |
'This is the fourth branch of the brothers' business. | 0:48:40 | 0:48:43 | |
'So they are not looking for a quick profit. | 0:48:43 | 0:48:46 | |
'But we've asked two local estate agents along to give us their | 0:48:46 | 0:48:50 | |
'thoughts on this 227 grand investment. | 0:48:50 | 0:48:54 | |
'First the agent who saw it before.' | 0:48:54 | 0:48:56 | |
Quite significant changes, since my last visit here a year or so ago. | 0:48:56 | 0:49:02 | |
Interesting concept, they have a funeral parlour now running adjacent | 0:49:02 | 0:49:06 | |
to what will potentially be a restaurant. | 0:49:06 | 0:49:08 | |
The layout, there are a lot of rooms here to use which you would imagine | 0:49:08 | 0:49:11 | |
is important. So there is plenty of storage space, showrooms, | 0:49:11 | 0:49:14 | |
office rooms, and the finish is really good. | 0:49:14 | 0:49:16 | |
It's clean, it's tidy and it's neat. | 0:49:16 | 0:49:19 | |
It has just got a nice feel to it. | 0:49:19 | 0:49:21 | |
'So, positive views from the agents. | 0:49:21 | 0:49:23 | |
'And since it has been nearly a year since we visited, | 0:49:23 | 0:49:26 | |
'has the value of the units increased | 0:49:26 | 0:49:29 | |
'bearing in mind the brothers paid 177 grand at auction?' | 0:49:29 | 0:49:32 | |
I feel it is likely to achieve in the region of sort of ?250,000. | 0:49:34 | 0:49:38 | |
The property is quite unique, there aren't many direct comparables, | 0:49:38 | 0:49:41 | |
but I would expect this to market in the region of ?245,000. | 0:49:41 | 0:49:45 | |
'After a total spend of ?227,000, | 0:49:45 | 0:49:49 | |
'that top value of 250 grand leaves Jaz and Manny a potential 23 grand | 0:49:49 | 0:49:55 | |
'profit. Not forgetting to add the rent of five and a half grand | 0:49:55 | 0:49:59 | |
'they have received so far from the bookies next door. | 0:49:59 | 0:50:02 | |
'So, what does Jaz make of the figures?' | 0:50:02 | 0:50:05 | |
The resale value is interesting. | 0:50:05 | 0:50:06 | |
I think it's exactly where we expected it to be at this stage | 0:50:06 | 0:50:09 | |
of the project. However, | 0:50:09 | 0:50:11 | |
it was not a thing that we really considered, selling this project. | 0:50:11 | 0:50:14 | |
However, we don't know what might happen in the future. | 0:50:14 | 0:50:17 | |
'And what about the rental income?' | 0:50:18 | 0:50:20 | |
On the rental market, I would expect the entire building to achieve | 0:50:20 | 0:50:24 | |
in the region of ?20,000 a year. | 0:50:24 | 0:50:25 | |
It's probably likely to achieve | 0:50:25 | 0:50:28 | |
in the region of ?15,000 to ?20,000 per year. | 0:50:28 | 0:50:31 | |
They are quite significantly lower than what we actually are | 0:50:31 | 0:50:33 | |
achieving on this site. | 0:50:33 | 0:50:35 | |
We will be getting close to ?30,000 across all three sites. | 0:50:35 | 0:50:39 | |
'Jaz is currently negotiating rents on the other two units, | 0:50:40 | 0:50:44 | |
'and his business will pay rent on this one. | 0:50:44 | 0:50:47 | |
'If he is right about that 30K figure, that would mean a yield | 0:50:47 | 0:50:50 | |
'of 13%. So, how is Jaz feeling about his new branch right now?' | 0:50:50 | 0:50:56 | |
It's just itchy feet now. | 0:50:57 | 0:50:59 | |
Can't wait to get it open. | 0:50:59 | 0:51:00 | |
'Time to head back to Telford in Shropshire where I saw this | 0:51:06 | 0:51:09 | |
'one-bedroom ground floor flat with a guide price of ?34,000.' | 0:51:09 | 0:51:13 | |
'Now, I'm not afraid of getting my hands dirty, but...' | 0:51:14 | 0:51:18 | |
It could do with a bit of a wash. | 0:51:18 | 0:51:20 | |
Sometimes that makes all the difference. | 0:51:20 | 0:51:22 | |
There are loads of stains on the doors | 0:51:22 | 0:51:24 | |
and it needs a good lick of paint. | 0:51:24 | 0:51:25 | |
'The grotty bathroom was no different, and to be honest, | 0:51:27 | 0:51:30 | |
'needed a total refit. | 0:51:30 | 0:51:32 | |
'There was a decent size double bedroom | 0:51:32 | 0:51:34 | |
'and a fairly spacious living room.' | 0:51:34 | 0:51:36 | |
'But there was a bit of scope to shape things up | 0:51:39 | 0:51:42 | |
'when it came to the kitchen.' | 0:51:42 | 0:51:44 | |
This is a stud wall, so you have your airing cupboard in here, | 0:51:46 | 0:51:49 | |
your stud wall, which means it would not be too much of a job | 0:51:49 | 0:51:53 | |
to take this down and open up this kitchen. | 0:51:53 | 0:51:56 | |
AUCTIONEER: 35... | 0:51:56 | 0:51:57 | |
'When it came to auction day, | 0:51:57 | 0:51:59 | |
'property developing duo Ian and Aidan snapped up the grubby | 0:51:59 | 0:52:03 | |
'ground floor flat for 35 grand, | 0:52:03 | 0:52:06 | |
'a mere ?1,000 over the guide price. | 0:52:06 | 0:52:08 | |
'So, their combined experience was already paying off. | 0:52:11 | 0:52:14 | |
'But it was not just about business for these two.' | 0:52:14 | 0:52:17 | |
We have gone on holiday together, haven't we? | 0:52:19 | 0:52:21 | |
Yeah. | 0:52:21 | 0:52:23 | |
So, yeah, we play golf. | 0:52:23 | 0:52:25 | |
Hang about quite a bit. The wives don't quite like that. | 0:52:25 | 0:52:28 | |
We seem to get away with it quite well. | 0:52:28 | 0:52:30 | |
Yeah. THEY LAUGH | 0:52:30 | 0:52:32 | |
I sense a bit of a bromance. It's nice. Yeah. | 0:52:33 | 0:52:36 | |
A bromance! Yeah! | 0:52:36 | 0:52:38 | |
# Ra-ra-ah-ah-ah-ah | 0:52:38 | 0:52:40 | |
# Ro mah Ro-mah-mah | 0:52:40 | 0:52:42 | |
# Gaga Ooh-la-la! | 0:52:42 | 0:52:44 | |
# Want your bad romance... # | 0:52:44 | 0:52:47 | |
'This bromance was leaving nothing to chance. | 0:52:48 | 0:52:51 | |
'With the help of their builders, | 0:52:51 | 0:52:53 | |
'they hoped to have the property ready for rental | 0:52:53 | 0:52:55 | |
'in two to three weeks, and for a budget of four grand. | 0:52:55 | 0:52:59 | |
'We are back just one month later to see how they got on.' | 0:52:59 | 0:53:02 | |
'The kitchen has been brought back to life with the help of some trendy | 0:53:12 | 0:53:15 | |
'tiles and fab textiles. | 0:53:15 | 0:53:17 | |
'As I suggested, the airing cupboard has been used to expand the kitchen, | 0:53:17 | 0:53:22 | |
'allowing space for a table. | 0:53:22 | 0:53:23 | |
'And new units, fitted appliances | 0:53:23 | 0:53:26 | |
'and stylish worktops really complete the look.' | 0:53:26 | 0:53:29 | |
'The bathroom looks spic and span. | 0:53:34 | 0:53:36 | |
'The new suite and vanity unit add a tad of class | 0:53:36 | 0:53:39 | |
'and those accent tiles really make the decor pop. | 0:53:39 | 0:53:43 | |
'The bedroom is no longer dirty, but divine. | 0:53:47 | 0:53:50 | |
'And new wall and floor coverings really smarten the place up. | 0:53:50 | 0:53:54 | |
'The living area is looking much more relaxing, too. | 0:53:59 | 0:54:01 | |
'Freshly decorated in neutral tones, it's a head-to-toe makeover.' | 0:54:01 | 0:54:06 | |
'Did anything original make the cut?' | 0:54:07 | 0:54:11 | |
The only thing we saved was the bath, wasn't it? | 0:54:11 | 0:54:13 | |
The electrics were OK. | 0:54:13 | 0:54:15 | |
We had them checked. The boiler was OK. Yeah. | 0:54:15 | 0:54:17 | |
And we kept a few spiders, did we? | 0:54:17 | 0:54:19 | |
No! | 0:54:19 | 0:54:21 | |
'Creepy-crawlies don't seem to have put off their builders, | 0:54:22 | 0:54:26 | |
'who have done a fantastic job. | 0:54:26 | 0:54:28 | |
'Now, is that because they had top-notch project managers?' | 0:54:28 | 0:54:31 | |
I think I come once. | 0:54:32 | 0:54:34 | |
We... Well, you were on holiday. Yeah! | 0:54:34 | 0:54:36 | |
So, effectively... | 0:54:38 | 0:54:39 | |
..they don't need hands-on management. | 0:54:41 | 0:54:43 | |
They like to be left to get on with it. | 0:54:43 | 0:54:45 | |
They know what they are doing. | 0:54:45 | 0:54:47 | |
What's really important is that we get all the materials ready for them | 0:54:47 | 0:54:50 | |
and get it delivered on-site. | 0:54:50 | 0:54:52 | |
So, we're in and out, but we're not heavy management. | 0:54:52 | 0:54:54 | |
'Considering they stuck to that rapid two to three week turnaround, | 0:54:56 | 0:54:59 | |
'it seems like everything went according to plan. | 0:54:59 | 0:55:02 | |
'What about that four grand budget?' | 0:55:02 | 0:55:05 | |
?4,002.36. | 0:55:05 | 0:55:09 | |
By the ?2 we went over budget, yeah, | 0:55:09 | 0:55:11 | |
he did give me a bit of a telling off because I went overboard | 0:55:11 | 0:55:14 | |
on the tiles. | 0:55:14 | 0:55:15 | |
'Could this mean trouble in paradise? Not to worry, Aidan, | 0:55:15 | 0:55:19 | |
'I'm sure you can absorb the two quid overspend | 0:55:19 | 0:55:21 | |
'with the rental income.' | 0:55:21 | 0:55:23 | |
So, the plan is this afternoon we get it furnished, | 0:55:24 | 0:55:28 | |
and tomorrow, people moving in. | 0:55:28 | 0:55:31 | |
'So now seems like a good time for some values. | 0:55:32 | 0:55:35 | |
'But first, let's see what two local estate agents thought of the changes | 0:55:35 | 0:55:39 | |
'to the flat, starting with the agent who saw it first.' | 0:55:39 | 0:55:43 | |
I think there's been some substantial improvements | 0:55:43 | 0:55:46 | |
that have been made. | 0:55:46 | 0:55:47 | |
You know, from when we were last previously here, | 0:55:47 | 0:55:49 | |
we recommended the kitchen, | 0:55:49 | 0:55:51 | |
the bathroom, you know, to have improvements. | 0:55:51 | 0:55:53 | |
They have certainly taken that on board. | 0:55:53 | 0:55:55 | |
Obviously the brand-new kitchen/diner, you have extra space. | 0:55:55 | 0:56:00 | |
So, you know, if somebody wants to sit and enjoy a meal, they have | 0:56:00 | 0:56:02 | |
obviously got space to do that now which is good. | 0:56:02 | 0:56:04 | |
The finish for this type of property, | 0:56:04 | 0:56:07 | |
I would say they have got spot on. | 0:56:07 | 0:56:09 | |
You wouldn't want to go too overboard with the finish because | 0:56:09 | 0:56:12 | |
of the resale, there is a limited price that you could reach. | 0:56:12 | 0:56:16 | |
And also for the rental market, | 0:56:16 | 0:56:17 | |
which probably is best suited for this type of property. | 0:56:17 | 0:56:20 | |
'What kind of figure could the house achieve on the sales market, | 0:56:22 | 0:56:24 | |
'considering Ian and Aidan's total investment of ?39,000?' | 0:56:24 | 0:56:28 | |
I think from the sales market perspective, | 0:56:31 | 0:56:33 | |
you are probably looking somewhere in the region of ?45,000 to ?50,000. | 0:56:33 | 0:56:38 | |
Now the property has been renovated, being a ground floor apartment, | 0:56:38 | 0:56:42 | |
I would suggest marketing price of around ?50,000, | 0:56:42 | 0:56:47 | |
to achieve between ?48,000 and ?50,000. | 0:56:47 | 0:56:50 | |
'Not bad. That's a potential profit of 11 grand minus taxes and fees. | 0:56:50 | 0:56:56 | |
'But Aidan and Ian already have a tenant lined up! | 0:56:56 | 0:56:59 | |
'So what did agents think they should be achieving | 0:56:59 | 0:57:02 | |
'on the rental market?' | 0:57:02 | 0:57:04 | |
I think for rental purposes, | 0:57:04 | 0:57:06 | |
you are probably looking somewhere in the region of ?375 to ?400 | 0:57:06 | 0:57:10 | |
per calendar month. | 0:57:10 | 0:57:11 | |
If you were to put this on the rental market today, | 0:57:11 | 0:57:14 | |
I would suggest it rental income | 0:57:14 | 0:57:16 | |
of around about ?400 per calendar month. | 0:57:16 | 0:57:18 | |
That's OK. Yeah. | 0:57:18 | 0:57:20 | |
But we have already rented for 425. | 0:57:20 | 0:57:23 | |
We are happy with that. Yeah. | 0:57:23 | 0:57:24 | |
I think the condition of it warranted slightly more. | 0:57:24 | 0:57:27 | |
'The figure of ?425 per calendar month the guys would be achieving | 0:57:30 | 0:57:34 | |
'works out a whopping yield of 13%, | 0:57:34 | 0:57:37 | |
'showing us this bromance is a match made in heaven. | 0:57:37 | 0:57:40 | |
'So, do they have any top tips for potential investors out there?' | 0:57:41 | 0:57:44 | |
Make sure that the boiler is OK. | 0:57:46 | 0:57:48 | |
Make sure you understand the properties you are buying | 0:57:48 | 0:57:52 | |
and the market that you are aiming for. | 0:57:52 | 0:57:55 | |
And within probably 5% to 10%, | 0:57:55 | 0:57:58 | |
exactly what you are going to spend on it. | 0:57:58 | 0:58:00 | |
And if you are not sure, give us a call. | 0:58:00 | 0:58:02 | |
Well, that's the last of today's property stories. | 0:58:06 | 0:58:08 | |
But there are many, many more to share with you. | 0:58:08 | 0:58:10 | |
And the best bit is that every project tells its own story. | 0:58:10 | 0:58:14 | |
Yes, join us again here on Homes Under The Hammer. | 0:58:14 | 0:58:16 | |
We will have loads more. See you. | 0:58:16 | 0:58:18 | |
Bye-bye. Goodbye. | 0:58:18 | 0:58:19 | |
What makes you two different from each other? | 0:58:46 | 0:58:49 | |
Um, we both live on different roads. | 0:58:49 | 0:58:53 | |
His favourite food is apples, my favourite food is cucumber. | 0:58:53 | 0:58:56 | |
Both... | 0:58:56 | 0:58:58 | |
She never stops talking! | 0:58:59 | 0:59:02 | |
Oh, no, we're not, look. | 0:59:02 | 0:59:04 |