0:00:02 > 0:00:05Hello, and welcome to the show. Now, possibly like you, we find
0:00:05 > 0:00:06the whole world of property
0:00:06 > 0:00:08interesting, exciting, even addictive.
0:00:08 > 0:00:11Yes, but in order to succeed, you have got to make sure you buy
0:00:11 > 0:00:14- at the right price and in the right location.- Yeah.
0:00:14 > 0:00:17One way you can do that is to head down to your local auction house and
0:00:17 > 0:00:19buy your next home under the hammer.
0:00:46 > 0:00:49You really do need to do your homework if you are buying
0:00:49 > 0:00:50a property at auction.
0:00:50 > 0:00:54Because if you do that, you might just grab yourself a bargain.
0:00:54 > 0:00:58So will any of today's properties turn out to be great deals?
0:00:58 > 0:00:59Here's what people bought.
0:01:01 > 0:01:05This overgrown plot in Brompton has Lucy feeling optimistic.
0:01:05 > 0:01:10According to the auction catalogue, this is land with potential.
0:01:12 > 0:01:14Let's keep the gardener on standby
0:01:14 > 0:01:17for this two-up, two-down in Wolverhampton.
0:01:17 > 0:01:20You do not want this in this place at all.
0:01:22 > 0:01:26It's more scissors than shears at this multipurpose building
0:01:26 > 0:01:28in Newcastle-under-Lyme.
0:01:28 > 0:01:30And, as you can see, it's a working salon.
0:01:30 > 0:01:31Morning, ladies.
0:01:33 > 0:01:36All these properties have been sold at auction and we'll find out
0:01:36 > 0:01:39who bought them and what they paid when they went under the hammer.
0:01:43 > 0:01:46I frequently visit the Medway area of Kent,
0:01:46 > 0:01:49but I'm not in one of my usual spots today.
0:01:49 > 0:01:52No - this time, I'm in the picturesque village of Brompton,
0:01:52 > 0:01:56which is situated between Chatham and Gillingham.
0:01:56 > 0:01:59It's a convenient location, with a couple of local pubs
0:01:59 > 0:02:03and if you fancy a quieter, leafier style of living,
0:02:03 > 0:02:06this could be a great place to find property.
0:02:07 > 0:02:11The origin of the name Brompton also has a leafy element.
0:02:11 > 0:02:14It derives from "broom".
0:02:14 > 0:02:15You know, the yellow shrub.
0:02:15 > 0:02:19Brompton might not have the fast train links or facilities
0:02:19 > 0:02:23as its neighbours do, but they're near enough.
0:02:23 > 0:02:26However, I'm not here to see a house.
0:02:26 > 0:02:30Oh, no. I am here to see this.
0:02:30 > 0:02:33It might not look very exciting from the outside,
0:02:33 > 0:02:36but this is not just any old parcel of land.
0:02:36 > 0:02:41According to the auction catalogue, this is land with potential.
0:02:41 > 0:02:45Now, it had a guide price of £35,000 to £40,000.
0:02:45 > 0:02:46I'm going to take a closer look.
0:02:48 > 0:02:49So what have we got here?
0:02:49 > 0:02:53Well, it's a rectangular parcel of grassland
0:02:53 > 0:02:55and you also get some parking spaces here as well.
0:02:57 > 0:02:59This certainly does have potential
0:02:59 > 0:03:01but because this is a conservation area,
0:03:01 > 0:03:03the design would have to fit in
0:03:03 > 0:03:05with the established period properties about here.
0:03:05 > 0:03:08But it is flat and there is access.
0:03:08 > 0:03:13It's 0.09 acres, so what to do?
0:03:14 > 0:03:18I think a detached family home or a pair of semis
0:03:18 > 0:03:21would work really well in this residential spot
0:03:21 > 0:03:24and certainly be a much more profitable way to go.
0:03:24 > 0:03:27However, planning is no shoo-in.
0:03:27 > 0:03:30There are plenty of aspects of a development here
0:03:30 > 0:03:32that could prove stumbling blocks -
0:03:32 > 0:03:35parking provision, privacy for neighbouring properties
0:03:35 > 0:03:38and, quite possibly, preservation.
0:03:39 > 0:03:43And have you noticed this tree on the site here?
0:03:43 > 0:03:47This could also pose a problem to a planning application
0:03:47 > 0:03:50and that is because anyone proposing to cut it down,
0:03:50 > 0:03:53top or lop a tree in a conservation area
0:03:53 > 0:03:57has to give six weeks' notice to the local authority
0:03:57 > 0:04:00who will then visit the site to decide whether
0:04:00 > 0:04:03a Tree Preservation Order should be applied.
0:04:03 > 0:04:06If not, then you should be OK to chop the tree down
0:04:06 > 0:04:10but if they decide the tree should be protected, well,
0:04:10 > 0:04:14that could affect what and whether you can even build here.
0:04:14 > 0:04:18# Tell me why this is a land of confusion... #
0:04:18 > 0:04:20It's quite simple, Phil.
0:04:20 > 0:04:22Literally it's the law of the land.
0:04:24 > 0:04:27There are historic parts of Brompton,
0:04:27 > 0:04:30but luckily, this isn't one of them, which will make things easier.
0:04:30 > 0:04:33Also, in the past, there was a building here,
0:04:33 > 0:04:36making this brownfield land.
0:04:36 > 0:04:38For guidance, we called a local estate agent
0:04:38 > 0:04:41with experience in these types of cases.
0:04:43 > 0:04:46The likelihood of somebody getting residential planning here
0:04:46 > 0:04:50I think, is good. But like anything with the local authorities,
0:04:50 > 0:04:55it is a little bit of a gamble, so it could go either way.
0:04:55 > 0:04:59So why would someone take on a £40,000 gamble like that?
0:04:59 > 0:05:02If you were to sell this land on with planning permission,
0:05:02 > 0:05:07I think it could be worth in the region of £100,000 to £150,000.
0:05:07 > 0:05:11If you were to build a four-bedroom detached property,
0:05:11 > 0:05:14I think you could achieve a value
0:05:14 > 0:05:19of £250,000 to £275,000.
0:05:19 > 0:05:21Well, this is a residential location
0:05:21 > 0:05:24and it seems fitting that a new house or houses
0:05:24 > 0:05:26could even be built here.
0:05:26 > 0:05:29However, it is not quite as simple as that
0:05:29 > 0:05:33and nothing is guaranteed when it comes to planning permission.
0:05:33 > 0:05:38Let's head to the auction and find out who was prepared to risk buying
0:05:38 > 0:05:40a rather expensive bit of garden land.
0:05:40 > 0:05:42Nice site, this one. Little corner site
0:05:42 > 0:05:45that has been left untouched for a long time.
0:05:45 > 0:05:4735 to 40 is the guide price.
0:05:47 > 0:05:48Kick me off at 35,000.
0:05:48 > 0:05:50Straight in at 35. I'm obliged. 35.
0:05:50 > 0:05:52Now 40. 40 in front.
0:05:52 > 0:05:55This is going to be easy, isn't it? 45 behind.
0:05:55 > 0:06:00Bidding continues apace, to where we rejoin, looking for 80,000.
0:06:00 > 0:06:02At 80,000. 80, I've got.
0:06:02 > 0:06:03And two. 82.
0:06:03 > 0:06:0482, I've got.
0:06:04 > 0:06:06And four.
0:06:06 > 0:06:0984. And six.
0:06:09 > 0:06:10£86,000, I'm looking for.
0:06:10 > 0:06:12Or five, if it helps anybody.
0:06:12 > 0:06:1685, I've got. At 85, over on the left-hand side.
0:06:16 > 0:06:1886, I'm looking for.
0:06:18 > 0:06:20We are all done at £85,000.
0:06:20 > 0:06:23No, I've got 86. 87. 87, I've got.
0:06:23 > 0:06:25And 88. 88, I've got.
0:06:25 > 0:06:27And 89.
0:06:27 > 0:06:29No. Is that a no, or is that...?
0:06:29 > 0:06:30No, that's definitely not.
0:06:30 > 0:06:34£88,000, I'm back with my maiden bidder.
0:06:34 > 0:06:36For the first time at 88,000.
0:06:36 > 0:06:38For the second time at £88,000.
0:06:38 > 0:06:42Third and final time, if you are sure you're all done.
0:06:42 > 0:06:44Well done. £88,000.
0:06:44 > 0:06:46And that's H080.
0:06:46 > 0:06:51That top bid of 88,000 came from David and wife Maureen.
0:06:51 > 0:06:54David is a pastor in a local church
0:06:54 > 0:06:56and Maureen assists him with his work.
0:06:56 > 0:06:58They live in nearby Chatham
0:06:58 > 0:07:02and plan to build a house to live in on this plot.
0:07:02 > 0:07:03David and Maureen, congratulations.
0:07:03 > 0:07:05- Thank you.- Good to see you.
0:07:05 > 0:07:08So let's talk about auction day, and the price you paid.
0:07:08 > 0:07:11Did you expect to pay as much on the day?
0:07:11 > 0:07:13Personally, yes.
0:07:13 > 0:07:16I felt that the area that we're in is quite a good area
0:07:16 > 0:07:18and the size of the plot was reasonable.
0:07:18 > 0:07:20It was right at the top end up our budget, though.
0:07:20 > 0:07:23Is this something you've been looking into and planning for many years?
0:07:23 > 0:07:26Or did you just see a plot and instantly think,
0:07:26 > 0:07:27"Oh, that would be good"?
0:07:27 > 0:07:29We've been looking for land for quite a while,
0:07:29 > 0:07:31scanning everywhere, walking.
0:07:31 > 0:07:34- Walking the roads and streets, looking.- Oh, really?- Yeah.
0:07:34 > 0:07:37And when you saw this plot of land, Maureen, how did you feel?
0:07:37 > 0:07:40Because it doesn't look like, "Oh, look at that plot of land!"
0:07:40 > 0:07:43It's almost a little bit, you know, unusual in shape.
0:07:43 > 0:07:45It is a funny shape.
0:07:45 > 0:07:47And with all the stuff that's on it as well,
0:07:47 > 0:07:50the wall, and the trees, and everything,
0:07:50 > 0:07:51you sort of thought, "Oh, I don't know."
0:07:51 > 0:07:56But we found out somebody else was thinking of putting two houses.
0:07:56 > 0:08:00So you've paid nearly £90,000 on auction day for this plot
0:08:00 > 0:08:02- without planning permission.- Mmm.
0:08:02 > 0:08:05Now, how does that make you feel?
0:08:05 > 0:08:07Very nervous - at first.
0:08:07 > 0:08:10The golden rule is not to buy a plot of land
0:08:10 > 0:08:13without even outline planning.
0:08:13 > 0:08:16But because there had been a property on here once before
0:08:16 > 0:08:19many years ago, we felt there's a very, very good chance.
0:08:19 > 0:08:22Guys, tell me about the sort of house you want to build.
0:08:22 > 0:08:24A highly insulated house.
0:08:24 > 0:08:25A passive type of house,
0:08:25 > 0:08:29where everything is geared for keeping heat in
0:08:29 > 0:08:31and keeping the cold out.
0:08:31 > 0:08:34That's high on the list. We're going to spend a great part of the money
0:08:34 > 0:08:36on the insulation of the walls.
0:08:36 > 0:08:39Yeah, it's going to be three-bedroom.
0:08:39 > 0:08:44An en suite, and probably a bathroom and toilet upstairs
0:08:44 > 0:08:47and then downstairs, we'll have a wet room and a toilet,
0:08:47 > 0:08:48as well as, sort of, the open-plan.
0:08:48 > 0:08:50- Is it just for you two?- Yes.
0:08:50 > 0:08:53No grandchildren, no kids.
0:08:53 > 0:08:55- Just the grown-ups! - Just the grown-ups!
0:08:55 > 0:08:56A grown-ups' house!
0:08:56 > 0:08:58Maureen's laughing away.
0:08:58 > 0:09:00- Is that true?- Yes!
0:09:00 > 0:09:02Is that quite exciting? Or is that completely a lie?
0:09:02 > 0:09:04- Yeah.- That's a fib!
0:09:04 > 0:09:06David, what are you doing to me?
0:09:06 > 0:09:08Come on, who is this house going to be for?
0:09:08 > 0:09:10And what's it going to be like?
0:09:10 > 0:09:14It's for us, but we've got three daughters
0:09:14 > 0:09:18and now they've all grown up and got they've their own families as well.
0:09:18 > 0:09:21Our house is just too small when we have a family get-together
0:09:21 > 0:09:24so that's why we want it all open-plan.
0:09:24 > 0:09:28There's no walls - apart from the utility room, there's no walls.
0:09:28 > 0:09:29You've got to think outside the box.
0:09:29 > 0:09:33You know, like, we've been discussing where the stairs will go,
0:09:33 > 0:09:35and all this sort of thing.
0:09:35 > 0:09:39And you so think about what your house is like now and think,
0:09:39 > 0:09:43"Oh, no, it doesn't have to be like that. We can just do it whatever."
0:09:43 > 0:09:46So it's quite scary, thinking outside the box.
0:09:46 > 0:09:48What are you most looking forward to?
0:09:48 > 0:09:50I think to have the off-road parking.
0:09:50 > 0:09:52I know that sounds very strange.
0:09:52 > 0:09:54- Such a man thing.- I know. - Isn't that such a man thing?
0:09:54 > 0:09:56"Oh, the off-road parking."
0:09:56 > 0:09:58Not the bathrooms or the kitchen!
0:09:58 > 0:09:59THEY LAUGH
0:09:59 > 0:10:02So you're looking forward to the off-road parking.
0:10:02 > 0:10:03- I am.- Tell me why.
0:10:03 > 0:10:05I think because where we live at the moment,
0:10:05 > 0:10:07all our vehicles have been on the road
0:10:07 > 0:10:09and severely damaged at times.
0:10:09 > 0:10:12So getting the vehicles off the road is really great.
0:10:12 > 0:10:15But also the excitement of building something that maybe will help
0:10:15 > 0:10:20in future-proofing our financial position
0:10:20 > 0:10:22- in the later years.- Mmm.
0:10:22 > 0:10:25And what sort of materials are you looking at to build this house?
0:10:25 > 0:10:27- Timber-framed stud.- Oh, OK.
0:10:27 > 0:10:30Are you going to be importing something like that?
0:10:30 > 0:10:34- We are. If you're talking importing from Ireland.- OK.
0:10:34 > 0:10:37We have a company in Ireland that we would like to use.
0:10:37 > 0:10:39Then we're going to employ subcontractors
0:10:39 > 0:10:41and I'm going to be the project manager.
0:10:41 > 0:10:45Tell me how you're both going to work this with your daytime jobs.
0:10:45 > 0:10:47- Tell me about that. - We intend to live on site.
0:10:47 > 0:10:52We can't have a home and live in that as well as pay for the project.
0:10:52 > 0:10:54So we're going to sell up
0:10:54 > 0:10:57and move directly onto site as the building starts.
0:10:57 > 0:10:58Right from the word go.
0:10:58 > 0:11:02- In a caravan?- In a caravan. - Living in a caravan!
0:11:02 > 0:11:04Are you quite excited by that? It's quite an adventure, isn't it?
0:11:04 > 0:11:06Yeah, that's right.
0:11:10 > 0:11:14Well, I bet David will be visiting his parishioners a lot for tea.
0:11:14 > 0:11:16Living in a caravan can be a challenge -
0:11:16 > 0:11:20however, these two have got lots of support to help them
0:11:20 > 0:11:22get a meaningful start.
0:11:22 > 0:11:27We have said, though, we're going to have a big ground clearing day
0:11:27 > 0:11:30so we'll have ground clearing day barbecue,
0:11:30 > 0:11:32sort of get everyone on site to help.
0:11:32 > 0:11:35- What sort of budget have you got for this build?- 100k.
0:11:35 > 0:11:36- That is it?- Mmm.
0:11:36 > 0:11:39And your timescale? How long do you think it's going to take you
0:11:39 > 0:11:41from start to finish?
0:11:41 > 0:11:44This year, we're just doing all the homework and everything, and then,
0:11:44 > 0:11:46of course, the planning permission.
0:11:46 > 0:11:48And then we've got to sell our house,
0:11:48 > 0:11:51so hopefully next year, it'll get going.
0:11:51 > 0:11:53So in terms of months, how long?
0:11:53 > 0:11:54Six months.
0:11:54 > 0:11:57Six months from start to finish?
0:11:57 > 0:12:00Do you really think you can do it that quickly?
0:12:00 > 0:12:04Yes. The house can actually go up, from the foundation to the roof,
0:12:04 > 0:12:06in six weeks.
0:12:06 > 0:12:09And then after that, of course we put up the external brickwork,
0:12:09 > 0:12:11the roof tiles, and then kit out the inside.
0:12:11 > 0:12:13You guys both look so happy.
0:12:13 > 0:12:16And I'm just really excited you've got the chance in life to build
0:12:16 > 0:12:18your own dream home for you and your family.
0:12:18 > 0:12:21I mean, it's an opportunity that's just not to be missed.
0:12:21 > 0:12:22- Yeah.- Absolutely.
0:12:22 > 0:12:24- Well done. Maureen, lovely to meet you.- Thank you.
0:12:24 > 0:12:26Thank you so much for coming along today.
0:12:26 > 0:12:29- It's great. Good news. - Yeah.- Thank you.
0:12:29 > 0:12:31Well, it might be the first time they've built a new home,
0:12:31 > 0:12:35but David and Maureen already have a plan of action and a team in place
0:12:35 > 0:12:38ready to build their new, sociable property.
0:12:38 > 0:12:40However, it's not as easy to obtain
0:12:40 > 0:12:42that all-important planning permission,
0:12:42 > 0:12:46and they can't make a start until they have that in place.
0:12:46 > 0:12:48We'll find out later in the show
0:12:48 > 0:12:51if they're given the green light to go ahead
0:12:51 > 0:12:53with their eco-friendly house.
0:12:57 > 0:13:02I'm in Wolverhampton. Traditionally, it had an economy dominated by
0:13:02 > 0:13:03engineering and manufacturing.
0:13:03 > 0:13:07But now Wolverhampton is known as one of the major
0:13:07 > 0:13:09retail centres in the West Midlands.
0:13:09 > 0:13:11It's popular for commuters,
0:13:11 > 0:13:14as it's only 15 minutes' train journey from Birmingham,
0:13:14 > 0:13:17the UK's second most populated city.
0:13:19 > 0:13:21So what do you have to pay for a property
0:13:21 > 0:13:23in this part of the country?
0:13:23 > 0:13:25Well, potentially, not very much,
0:13:25 > 0:13:28because up for auction was this -
0:13:28 > 0:13:33it's a two-bedroom mid-terrace, guide price 29,000-34,000 quid.
0:13:37 > 0:13:39OK.
0:13:39 > 0:13:44It is just one of those auction properties where
0:13:44 > 0:13:46lots of stuff has just been left,
0:13:46 > 0:13:49and that can sometimes be a little bit distressing.
0:13:49 > 0:13:52But let's just look at the fabric of the property.
0:13:52 > 0:13:55Through the front door, traditional layout,
0:13:55 > 0:13:58straight into the lounge and then through this little area here
0:13:58 > 0:14:00into your rear sitting room area.
0:14:00 > 0:14:01Not a bad size space.
0:14:01 > 0:14:05Stairs up to your bedrooms there, and then continuing
0:14:05 > 0:14:09the very classic sort of original two-up, two-down terrace.
0:14:09 > 0:14:11Somebody has done what most people would do -
0:14:11 > 0:14:14stick an extension on the back, which now houses the kitchen,
0:14:14 > 0:14:18and through the kitchen to the bathroom and the loo.
0:14:18 > 0:14:21You know, in an ideal world, of course, that would be upstairs
0:14:21 > 0:14:23but I think in this kind of property,
0:14:23 > 0:14:25it's often expected it will be here,
0:14:25 > 0:14:27and people can live with that.
0:14:27 > 0:14:31So, first job, sort out all the stuff.
0:14:31 > 0:14:33Next job, see what you've got,
0:14:33 > 0:14:37and then take a look at what you're going to have to do to sort it out.
0:14:37 > 0:14:40Clearing everything out of a house can actually take a lot more time
0:14:40 > 0:14:42and effort than you think.
0:14:42 > 0:14:44If it's going in a skip or two,
0:14:44 > 0:14:47then the cost will have to be factored in as well.
0:14:47 > 0:14:50You could also ring round your local charity shops,
0:14:50 > 0:14:52as some of them may do free pick-ups for any items
0:14:52 > 0:14:54still in usable condition.
0:14:54 > 0:14:56And people will benefit from it,
0:14:56 > 0:14:59rather than seeing items go to waste.
0:15:02 > 0:15:04So come upstairs, and two bedrooms,
0:15:04 > 0:15:06one towards the front of the property here,
0:15:06 > 0:15:12and then it gets a bit strange because over the side, yes,
0:15:12 > 0:15:16it's another bedroom, but look - it's deeper than that one.
0:15:17 > 0:15:19I know what it is.
0:15:19 > 0:15:20Underneath there on that side,
0:15:20 > 0:15:22and probably going the whole way across,
0:15:22 > 0:15:24but it hasn't been used, is an alleyway.
0:15:24 > 0:15:29And this bedroom has a flying freehold across that alleyway.
0:15:29 > 0:15:32Now, my guess is the next-door neighbour's probably comes in
0:15:32 > 0:15:33on the other side into that bedroom.
0:15:33 > 0:15:36It's not necessarily a problem,
0:15:36 > 0:15:39it's something which mortgage companies can be a little bit sensitive about.
0:15:40 > 0:15:42So, you know what to do, don't you?
0:15:42 > 0:15:44# Ch-ch-ch-ch-ch-check it out
0:15:44 > 0:15:47# Wh-wh-wh-wh-what's it all about? #
0:15:47 > 0:15:51Yes, you get your solicitor to check the deeds and see who has
0:15:51 > 0:15:55the responsibility for upkeep and repairs to the shared passage.
0:15:55 > 0:15:58They may also advise taking out indemnity insurance
0:15:58 > 0:16:03to cover any possible eventualities that may affect your property.
0:16:04 > 0:16:07Well, out at the back of the property, you've got
0:16:07 > 0:16:09a half-decent-sized garden.
0:16:09 > 0:16:11Now, one issue you have got out here is this -
0:16:11 > 0:16:13in fact, there's more to come as well.
0:16:13 > 0:16:15But this is a big old tree
0:16:15 > 0:16:18and you do not want this in this place at all.
0:16:18 > 0:16:22It's close to drains, it's one of those dreaded conifer-type things
0:16:22 > 0:16:25that's going to have roots spreading in all sorts of places.
0:16:25 > 0:16:28The good news is it wouldn't have any kind of preservation order on it
0:16:28 > 0:16:29so you could chop it down.
0:16:29 > 0:16:32However, don't underestimate the amount of effort that will take.
0:16:32 > 0:16:35And if you're going to get somebody in to professionally do it,
0:16:35 > 0:16:38it's actually going to cost you a reasonable amount of money -
0:16:38 > 0:16:41especially as it's not going to be that easy to get the old bits of wood out.
0:16:41 > 0:16:44And it gets worse, because at the end of the garden...
0:16:45 > 0:16:47..there's another one. Uh-oh!
0:16:47 > 0:16:49Double the trouble.
0:16:50 > 0:16:55It's a big job, so make sure you get an expert in to remove them.
0:16:57 > 0:16:59What can an agent from the auction house who sold it
0:16:59 > 0:17:01tell us about this property,
0:17:01 > 0:17:06guided at what seems a relatively affordable 29,000-34,000?
0:17:07 > 0:17:10The property's quite a pleasant little one.
0:17:10 > 0:17:14It's in reasonable condition.
0:17:14 > 0:17:16It will probably want redecorating.
0:17:16 > 0:17:19They might consider changing the bathroom and kitchen,
0:17:19 > 0:17:22although they're not in bad condition.
0:17:22 > 0:17:24Once the property's finished and on the market,
0:17:24 > 0:17:29I think the property will have a fairly strong demand,
0:17:29 > 0:17:33as there's nothing been for sale on this particular road for some time.
0:17:33 > 0:17:35That sounds promising.
0:17:35 > 0:17:39Could that demand be reflected in the sales value?
0:17:39 > 0:17:42I would imagine the property would achieve something
0:17:42 > 0:17:44in the region of 85,000.
0:17:44 > 0:17:49It might make £90,000 if it's done up particularly well.
0:17:50 > 0:17:53Wow! On the face of it, that might look like
0:17:53 > 0:17:55there could be a massive profit in this.
0:17:55 > 0:17:58But you really need to be asking yourself some questions
0:17:58 > 0:17:59and do some research.
0:17:59 > 0:18:02For instance, given that this area is known for mining,
0:18:02 > 0:18:04is there a mining report?
0:18:04 > 0:18:08What do other properties sell for around here?
0:18:08 > 0:18:10Is this guide price realistic?
0:18:10 > 0:18:14Another question - what could this rent for once done up?
0:18:14 > 0:18:16If the property is put out to rent,
0:18:16 > 0:18:21then I would forecast a rental income of somewhere between
0:18:21 > 0:18:24£475 and £500 per calendar month.
0:18:25 > 0:18:28So a few things to do to sort the house out.
0:18:28 > 0:18:31Nothing too major, and it could be a nice little project.
0:18:31 > 0:18:35But definitely one of those where you really need to keep a tight rein
0:18:35 > 0:18:38on the budget, because there'll definitely be a ceiling price
0:18:38 > 0:18:40for properties around here.
0:18:40 > 0:18:42Make sure you know what that is before you buy.
0:18:42 > 0:18:45Let's hope that's what the person here did
0:18:45 > 0:18:47when they went to the auction.
0:18:47 > 0:18:51Lot 37. £50,000 to start.
0:18:51 > 0:18:5240, then?
0:18:52 > 0:18:54Well, 30,000, then?
0:18:54 > 0:18:5630, sir. Thank you at the back, at £30,000.
0:18:56 > 0:18:58With your hand in the air at 30.
0:18:58 > 0:19:0035? Lady's bid. At 35.
0:19:00 > 0:19:0140, sir. 40, I'm bid.
0:19:01 > 0:19:0345, madam. 45...
0:19:03 > 0:19:06It sailed past the guide price and kept climbing.
0:19:06 > 0:19:09We rejoin at 68,000.
0:19:09 > 0:19:1068, I'm bid.
0:19:10 > 0:19:1270, sir. 70 bid.
0:19:12 > 0:19:1372, sir. 72.
0:19:13 > 0:19:1574, sir. 74.
0:19:15 > 0:19:1676. 74.
0:19:16 > 0:19:18Have 75 if you wish, sir.
0:19:18 > 0:19:19I'll take £1,000 anywhere.
0:19:19 > 0:19:22Thank you, sir. 75. 76, sir.
0:19:22 > 0:19:24Where are you? No? £75,000.
0:19:24 > 0:19:26It's the original bidder. You're out there.
0:19:26 > 0:19:27The bid is there.
0:19:27 > 0:19:31Going, going, gone to 881, sir.
0:19:31 > 0:19:32Thank you very much, 881.
0:19:32 > 0:19:37The successful bidders, paying a whopping £41,000
0:19:37 > 0:19:39over the guide price, were Tom and wife Joan.
0:19:39 > 0:19:42Tom is a support worker for the council
0:19:42 > 0:19:46and came along to tell me more about why they snapped this up.
0:19:46 > 0:19:49- Tom, good to meet you. - Good to meet you as well, Martin.
0:19:49 > 0:19:53Congratulations. Tell me why you wanted to buy this place.
0:19:53 > 0:19:55I bought this place, Martin, because it's a new venture.
0:19:55 > 0:19:59Myself and Joan, my wife, have been thinking about it for a long,
0:19:59 > 0:20:03long time, and we thought we'd venture out and what capital money
0:20:03 > 0:20:07we've saved over the years, that we'd purchase a property.
0:20:07 > 0:20:09Brilliant. So you've had houses before that you've just lived in?
0:20:09 > 0:20:10Just lived in them, yes.
0:20:10 > 0:20:12Why now?
0:20:12 > 0:20:13Because I am semi-retired.
0:20:13 > 0:20:18- I got back into the job market because of being bored at home.- OK.
0:20:18 > 0:20:21So with whatever redundancy I got,
0:20:21 > 0:20:24I thought this would be an ideal opportunity
0:20:24 > 0:20:27- to look at something new.- Great.
0:20:27 > 0:20:30But my wife, Joan, will be the project lead, because she...
0:20:30 > 0:20:33It's her idea, really. She's pushed me.
0:20:33 > 0:20:35Are you happy you've been pushed?
0:20:35 > 0:20:39Absolutely, because behind every successful man, shall we say,
0:20:39 > 0:20:41is a successful woman, maybe!
0:20:41 > 0:20:42And hopefully it'll be a successful project.
0:20:42 > 0:20:46Now, it went for a lot more than guide price, didn't it?
0:20:46 > 0:20:47Were you surprised?
0:20:47 > 0:20:50I was surprised, but there was...
0:20:50 > 0:20:52I think there was a couple of bidders in at the end
0:20:52 > 0:20:55and I kept turning round to Joan and saying, "Shall I, shan't I?"
0:20:55 > 0:20:56And she was saying, "Yes".
0:20:56 > 0:20:59She didn't want to leave without buying a property.
0:20:59 > 0:21:01So there we go.
0:21:01 > 0:21:03But my advice is know your budget.
0:21:03 > 0:21:05You know what I mean? Know your budget.
0:21:05 > 0:21:08- Did you go above your budget? - We went above the budget, yeah.
0:21:08 > 0:21:10How much above the budget?
0:21:10 > 0:21:14Well, we were hoping to get it for around 50-55.
0:21:14 > 0:21:16Right? Maybe 60.
0:21:16 > 0:21:19And what do we say on Homes Under The Hammer
0:21:19 > 0:21:22about paying over your maximum budget?
0:21:22 > 0:21:25# It's a, it's a, it's a...
0:21:25 > 0:21:26# It's a sin! #
0:21:26 > 0:21:30And although they didn't commit the sin of not reading the legal pack,
0:21:30 > 0:21:33unfortunately, being new to this game, they didn't scrutinise it
0:21:33 > 0:21:36enough and they have found themselves having to pay
0:21:36 > 0:21:39seller's fees and admin charge,
0:21:39 > 0:21:42and auctioneers' fees over five grand.
0:21:42 > 0:21:45That's why you should go through it with a fine-toothed comb.
0:21:45 > 0:21:47Why this particular house, then?
0:21:47 > 0:21:52Because we thought that this particular house would be a good start.
0:21:52 > 0:21:54It's small, it's compact.
0:21:54 > 0:21:59Yeah, it does need a refurb, renovating, but it's manageable.
0:21:59 > 0:22:02And how much of the work are you going to be doing yourself?
0:22:02 > 0:22:04As little as possible, Martin, to be quite honest,
0:22:04 > 0:22:07- because we want it done ASAP.- OK.
0:22:07 > 0:22:09We want to get a fairly quick turnover on it
0:22:09 > 0:22:12and then get back onto the market.
0:22:12 > 0:22:14The renovation budget is going to have to be readjusted
0:22:14 > 0:22:16due to a significant overspend,
0:22:16 > 0:22:19and they hope to do it for 8,000-10,000.
0:22:19 > 0:22:22So what jobs will they prioritise?
0:22:24 > 0:22:28- The obvious thing is the tree in the back garden's got to go.- Yes.
0:22:28 > 0:22:30Probably strip the walls, look at the plaster underneath.
0:22:30 > 0:22:33There's a leak on the roof that we've got to sort out
0:22:33 > 0:22:35because the roof doesn't look too good out there,
0:22:35 > 0:22:37and a general refurb on the garden.
0:22:37 > 0:22:39What is the timescale?
0:22:39 > 0:22:40I'm hoping three to four months.
0:22:40 > 0:22:43How much are you hoping you might be able to sell it for?
0:22:43 > 0:22:49Well, we're thinking if it went up for 115 and we got 110, 108, 110,
0:22:49 > 0:22:52- we'd be quite happy with that as a first venture.- Yeah, 20 grand.
0:22:52 > 0:22:55- And a quick turnover.- And what will happen if you can't sell it?
0:22:55 > 0:22:56Will you just keep lowering the price,
0:22:56 > 0:22:58or will you rent it out, or what?
0:22:58 > 0:22:59We have talked about it.
0:22:59 > 0:23:03Joan did mention renting it out, but ideally, we'd love to sell it.
0:23:03 > 0:23:05If they spent their £10,000 budget,
0:23:05 > 0:23:08that would bring them to the £90,000 mark
0:23:08 > 0:23:11the estate agent valued the property at.
0:23:11 > 0:23:15But maybe the demand for properties in this area will help them out.
0:23:15 > 0:23:20Either way, it's their first venture and it's all a learning process.
0:23:20 > 0:23:23So what has Tom learned already on this?
0:23:23 > 0:23:25Look at the legal pack, look at that,
0:23:25 > 0:23:29and ensure that the costings that are put on top,
0:23:29 > 0:23:33which I thought were going to come out of the purchase price,
0:23:33 > 0:23:36are either in the purchase price or they are on top,
0:23:36 > 0:23:38because it is a bit of a shock.
0:23:38 > 0:23:40When did you actually discover that?
0:23:40 > 0:23:43When the solicitor sent the paperwork through.
0:23:43 > 0:23:46So that's my mistake!
0:23:46 > 0:23:49But, you know, so is life. You learn by your mistakes.
0:23:49 > 0:23:52- Well, listen, congratulations. Good luck with it.- Cheers, Martin.
0:23:52 > 0:23:56- Look forward to seeing how you get on.- Thanks.
0:23:56 > 0:24:00So, Tom going over budget at the auction and not realising
0:24:00 > 0:24:03there were extra costs to pay.
0:24:03 > 0:24:05That is a bit of a double whammy.
0:24:05 > 0:24:08I'm a little bit concerned as well about his budget
0:24:08 > 0:24:09for doing this place up.
0:24:09 > 0:24:12I think it might be slightly higher than he thinks.
0:24:12 > 0:24:18It really is a case of first-time buyer at the auction problems.
0:24:18 > 0:24:20How will he get on, though? Hopefully OK.
0:24:20 > 0:24:22You can find out later in the show.
0:24:23 > 0:24:27Still to come, I'm exhausted thinking about the possibilities
0:24:27 > 0:24:29at this property in Staffordshire.
0:24:29 > 0:24:33Come on, guys. Just give me five minutes' break!
0:24:35 > 0:24:37We'll find out if it's a case of beginner's luck
0:24:37 > 0:24:40or rookie mistakes in Wolverhampton.
0:24:40 > 0:24:43It's took a long time, let me just say that!
0:24:47 > 0:24:50Time to return out to the picturesque village of Brompton
0:24:50 > 0:24:53in the county of Kent, where Lucy saw this plot of land.
0:24:55 > 0:24:59OK, it was rather lacklustre, but it did have lots of potential.
0:25:02 > 0:25:07I think a detached family home or a pair of semis would work really well
0:25:07 > 0:25:09in this residential spot.
0:25:09 > 0:25:12There were, however, a few obstacles in the way.
0:25:12 > 0:25:15The land had no outline planning permission,
0:25:15 > 0:25:18so who knew if you could build anything at all?
0:25:19 > 0:25:22It was also in a conservation area,
0:25:22 > 0:25:25so whatever you build would need to fit in with established
0:25:25 > 0:25:28period properties in the surrounding neighbourhood.
0:25:28 > 0:25:30Despite the obvious issues,
0:25:30 > 0:25:34it was a match made in heaven for local pastor David
0:25:34 > 0:25:38and his wife, Maureen, who paid £88,000 for the plot.
0:25:40 > 0:25:42It might have been in a conservation area,
0:25:42 > 0:25:45but their plans for the inside weren't so traditional.
0:25:47 > 0:25:51There's no walls - apart from the utility room, there's no walls.
0:25:51 > 0:25:54You've got to think outside the box, you know?
0:25:54 > 0:25:57Like, we've been discussing about where the stairs will go
0:25:57 > 0:25:59and all this sort of thing,
0:25:59 > 0:26:02and you so think about what your house is like now and think,
0:26:02 > 0:26:06"Oh, no, it doesn't have to be like that, we can just do it whatever."
0:26:06 > 0:26:10For David and Maureen, "outside the box"
0:26:10 > 0:26:14was their very own eco-friendly, highly insulated home
0:26:14 > 0:26:18with space for family gatherings with their grandchildren.
0:26:19 > 0:26:23They hoped they could get the house up in six months
0:26:23 > 0:26:26and had a budget of 100,000.
0:26:26 > 0:26:30So when we returned two years and nine months later,
0:26:30 > 0:26:35let's see if they have their own divine creation.
0:26:35 > 0:26:39# Oh, heaven, oh, heaven
0:26:39 > 0:26:43# I wait with good intentions
0:26:43 > 0:26:47# But the day, it always lasts too long. #
0:26:50 > 0:26:54The couple's eco-dream house is now a reality.
0:26:54 > 0:26:56The brand-new kitchen is looking heavenly
0:26:56 > 0:27:00with a mix of natural materials and modern fittings.
0:27:00 > 0:27:04The ground floor, as promised, is an open-plan living space.
0:27:10 > 0:27:14All the windows in the property are passive triple glazed,
0:27:14 > 0:27:16which means they are virtually airtight,
0:27:16 > 0:27:19so the house is very cost-effective to heat.
0:27:23 > 0:27:27There is a utility wet room with sleek modern fittings.
0:27:27 > 0:27:30But how is it looking upstairs?
0:27:30 > 0:27:33# I'm nothing like before. #
0:27:33 > 0:27:37A gallery landing is at the centre of three double bedrooms.
0:27:38 > 0:27:40There's a Jack-and-Jill bathroom
0:27:40 > 0:27:43and a roll-top bath in the master bedroom.
0:27:46 > 0:27:48It's all terrific,
0:27:48 > 0:27:52but creating a house from scratch has proven a challenge.
0:27:52 > 0:27:55Our original plan was not successful.
0:27:57 > 0:27:59We had to change architects,
0:27:59 > 0:28:05and the second architect really got to grips with what the council
0:28:05 > 0:28:07were looking for.
0:28:07 > 0:28:10Because it's a conservation area, it was really hard
0:28:10 > 0:28:15because the property had to look like the property around here.
0:28:15 > 0:28:19The front of the house looks the same as the rest of the street,
0:28:19 > 0:28:23the windows also look the same as the church just down the road here.
0:28:23 > 0:28:27So we were able to make the design quite a modern design by using
0:28:27 > 0:28:31the features that were in the area, so that was a learning curve.
0:28:31 > 0:28:36Conservation is quite a difficult one for us ordinary human people
0:28:36 > 0:28:38trying to work it out.
0:28:38 > 0:28:42Despite having to make compromises, they've created a fabulous house.
0:28:42 > 0:28:45But what about the plan they had to live on site in a caravan?
0:28:47 > 0:28:51Living on site allowed us to get control of the site
0:28:51 > 0:28:53and keep it on a daily basis.
0:28:53 > 0:28:56And Maureen was excellent at making tea and lunch!
0:28:57 > 0:28:59She was really good.
0:28:59 > 0:29:01My job was to project-manage,
0:29:01 > 0:29:06and so we worked hard with keeping all the trades going
0:29:06 > 0:29:08and knowing what was needed the following week,
0:29:08 > 0:29:10or the in the next few days.
0:29:10 > 0:29:12We managed to keep all the orders coming in,
0:29:12 > 0:29:14getting all the deliveries.
0:29:14 > 0:29:17Maureen kept David's energy levels up with those lunches,
0:29:17 > 0:29:21but what are some energy-saving features of the house?
0:29:21 > 0:29:24One of our requirements that we placed on ourselves
0:29:24 > 0:29:28was to capture all the rainwater and re-use it.
0:29:28 > 0:29:34We do this by sinking a rainwater harvesting tank below ground
0:29:34 > 0:29:37and we've drained everything, from the house roof,
0:29:37 > 0:29:40right into this area down here.
0:29:40 > 0:29:42And it works really well.
0:29:43 > 0:29:49From here, we draw up the water to our toilet and washing machine.
0:29:49 > 0:29:53The eco-house also has recycled newspaper in the roof,
0:29:53 > 0:29:56acting as insulation known as blown cellulose,
0:29:56 > 0:29:59and a heat recovery ventilation system
0:29:59 > 0:30:01that brings in fresh air from outside.
0:30:01 > 0:30:04They really have achieved something special here,
0:30:04 > 0:30:07but was their £100,000 budget realistic?
0:30:07 > 0:30:12Naively, we watched many of those programmes
0:30:12 > 0:30:14where they bought a house for £100,000.
0:30:14 > 0:30:20That obviously, as we progressed, was not going to happen.
0:30:20 > 0:30:23It was a good idea, but it wasn't going to happen.
0:30:23 > 0:30:27And so we end up spending between
0:30:27 > 0:30:31150 and 180,000 on the actual build.
0:30:31 > 0:30:34They blew the budget for their dream home,
0:30:34 > 0:30:36but I think it's worth it.
0:30:36 > 0:30:39But what is the house worth now it's complete?
0:30:39 > 0:30:42We invited along two local estate agents to give us their opinions
0:30:42 > 0:30:47on the couple's £268,000 investment.
0:30:47 > 0:30:49I'm really, really impressed with the property.
0:30:49 > 0:30:52One of the nicest features is the large windows
0:30:52 > 0:30:54and how light the property is.
0:30:54 > 0:30:56It's very modern and, sort of, futuristic.
0:30:56 > 0:31:01The condition of the property is ten out of ten, as far as I'm concerned.
0:31:01 > 0:31:03It looks like it's been done to their own taste as well, which is good.
0:31:03 > 0:31:05You see a lot of new builds,
0:31:05 > 0:31:07they're normally a little bit boring in what they offer.
0:31:07 > 0:31:09It looks very unique and I think it'll stand out
0:31:09 > 0:31:10if it was ever to go on the open market.
0:31:10 > 0:31:12And if it were to go on the open market,
0:31:12 > 0:31:16what sort of sales value would the house achieve?
0:31:16 > 0:31:20I would recommend an asking price of £375,000.
0:31:20 > 0:31:23If we were to put this property on the market I would recommend
0:31:23 > 0:31:25an asking price of £380,000.
0:31:25 > 0:31:28Yeah, that's probably more than I thought it would be.
0:31:28 > 0:31:29Definitely.
0:31:29 > 0:31:32A rather reserved reaction, considering the house is
0:31:32 > 0:31:36potentially worth more than they've spent creating it.
0:31:36 > 0:31:39But as it's their forever home, they won't be going anywhere.
0:31:39 > 0:31:44So how have they found the experience working together?
0:31:44 > 0:31:49We work together anyway, so it's been no different.
0:31:49 > 0:31:53Through the church, we have various projects that we work on
0:31:53 > 0:31:56but this one, we're definitely going for marriage counselling!
0:31:56 > 0:31:58THEY LAUGH
0:32:05 > 0:32:08Newcastle-under-Lyme is an elegant town in Staffordshire
0:32:08 > 0:32:10with its mixture of old and new.
0:32:12 > 0:32:14It's known for its market,
0:32:14 > 0:32:17but for me, I'm not interested in the fruit and veg -
0:32:17 > 0:32:19it's more the property market that floats my boat.
0:32:19 > 0:32:23The property I'm here to see is a big old unit.
0:32:23 > 0:32:24And here it is.
0:32:24 > 0:32:26It's described in the auction catalogue
0:32:26 > 0:32:29as being a "mixed-investment opportunity",
0:32:29 > 0:32:34and is already bringing in over £15,000 a year.
0:32:34 > 0:32:39However, the auction catalogue also mentions that figure could double.
0:32:39 > 0:32:44It's got the guide price of £195,000 and I'm intrigued.
0:32:44 > 0:32:46And part of that rental income
0:32:46 > 0:32:51is from the ground floor commercial unit at the front of the building.
0:32:51 > 0:32:53But I'm going to check out the other spaces first.
0:32:53 > 0:32:55What an amazing staircase.
0:32:55 > 0:32:57You've got all this original detail.
0:32:57 > 0:33:01A really nice banister, very pretty as you come upstairs.
0:33:01 > 0:33:03That's modern, that's original.
0:33:03 > 0:33:05I know which one I prefer.
0:33:05 > 0:33:08What have we got? A huge front room.
0:33:08 > 0:33:12Really high ceilings. You've got some more original features there.
0:33:12 > 0:33:15Central heating, original fireplace,
0:33:15 > 0:33:18and a massive window, letting loads of light in as well.
0:33:18 > 0:33:21So a very, very good start.
0:33:21 > 0:33:24I'm impressed so far. Let's have a look.
0:33:25 > 0:33:28Further down the hallway and round the corner,
0:33:28 > 0:33:31at the end, we've got a toilet and a kitchen off to the left
0:33:31 > 0:33:33and it even goes further round as well.
0:33:33 > 0:33:36There's so much space on this floor.
0:33:36 > 0:33:40But the original tiles in that toilet are so pretty.
0:33:40 > 0:33:44Into this huge room, more central heating, again, lots of light
0:33:44 > 0:33:47coming in, and the strip lighting up there tells me it was
0:33:47 > 0:33:49possibly an office.
0:33:49 > 0:33:54But all the same, lots of room, big space, lots of potential.
0:33:54 > 0:33:57Well, there is just room after room here.
0:33:57 > 0:33:59And if you were thinking,
0:33:59 > 0:34:01"Wow! What a great flat this would make,"
0:34:01 > 0:34:04you only have to go up one more flight of stairs
0:34:04 > 0:34:06to see you'd be right.
0:34:06 > 0:34:09On the top floor, which is a two-bedroom flat,
0:34:09 > 0:34:10which is already tenanted.
0:34:10 > 0:34:13Got a huge lounge just at the front of the property there,
0:34:13 > 0:34:15top of the stairs
0:34:15 > 0:34:18and this really is a massive bedroom.
0:34:18 > 0:34:21Really, really nice. Then you've got the family bathroom,
0:34:21 > 0:34:23a single bedroom and then the kitchen.
0:34:23 > 0:34:27What I do like about this place is it's incredibly well kept.
0:34:27 > 0:34:31What I like even more is that it's bringing money in already.
0:34:32 > 0:34:36So this top floor shows what potential there could be here.
0:34:36 > 0:34:41And if I venture down to the ground floor, the options continue.
0:34:41 > 0:34:44Downstairs on the ground floor and there is even more space.
0:34:44 > 0:34:49You've got two lots of access just here, it even goes further.
0:34:49 > 0:34:52In through there, you've got another room,
0:34:52 > 0:34:54you've got an area to the right-hand side as well.
0:34:54 > 0:34:58There is just so much potential with the whole of this property.
0:35:01 > 0:35:04Well, I think this could make a great studio flat.
0:35:04 > 0:35:07And although there is a basement, there is less space here.
0:35:07 > 0:35:11That's because the commercial unit is also on this floor.
0:35:11 > 0:35:14So I'm in the commercial part of the building and, as you can see,
0:35:14 > 0:35:16it's a working salon.
0:35:16 > 0:35:18Morning, ladies.
0:35:18 > 0:35:19And it's in a great location.
0:35:19 > 0:35:22You've got a little bit of hanging space there for the coats,
0:35:22 > 0:35:26and out the back, there's even more salon space,
0:35:26 > 0:35:29more or less the same size as the front.
0:35:29 > 0:35:32And this place is on a five-year lease.
0:35:32 > 0:35:34So you've got the top of the property making money,
0:35:34 > 0:35:37you've got the bottom of the property making money
0:35:37 > 0:35:41and all the rest is going to make you even more money.
0:35:41 > 0:35:42I love this place.
0:35:42 > 0:35:48This building has so many options - commercial, residential, flats.
0:35:48 > 0:35:52There is also a nearby university so an HMO,
0:35:52 > 0:35:56or a house in multiple occupancy, may be another good option.
0:35:56 > 0:35:59This place is so big, I'm going to have a bit of a rest.
0:36:01 > 0:36:03Come on, guys. Just me five minutes' break.
0:36:03 > 0:36:08# Got me going mad sitting in this chair
0:36:08 > 0:36:10# Like I don't care
0:36:10 > 0:36:12# Gotta get him out my hair. #
0:36:13 > 0:36:17Well, while I get my head polished and catch up on the gossip,
0:36:17 > 0:36:19what can a local estate agent
0:36:19 > 0:36:23tell us about this humongous place and what he'd do with it?
0:36:23 > 0:36:25I would look at two options.
0:36:25 > 0:36:31One option would be to keep the hair salon and the rent from the premises
0:36:31 > 0:36:35and then to turn the rest of the building into
0:36:35 > 0:36:41a house of multiple occupancy and rent per room per calendar month.
0:36:41 > 0:36:44The second option would be to turn
0:36:44 > 0:36:47each floor into two-bedroom apartments,
0:36:47 > 0:36:53still keeping the hair salon and the rent from that premises.
0:36:53 > 0:36:56So let's try for some figures on this place
0:36:56 > 0:36:59that was guided at £195,000.
0:36:59 > 0:37:01The resale value of the hair salon
0:37:01 > 0:37:04is somewhere in the region of £75,000.
0:37:04 > 0:37:06Each of the two-bedroom apartments
0:37:06 > 0:37:09would have a value in the region of £75,000.
0:37:09 > 0:37:11Looking at the property as an HMO,
0:37:11 > 0:37:19I would say, value-wise, somewhere 200,000 to maybe 225,000.
0:37:19 > 0:37:23So either option would give the potential total resale price
0:37:23 > 0:37:25of around 300 grand.
0:37:25 > 0:37:28With the flat and salon already bringing in 15 grand a year,
0:37:28 > 0:37:32what additional income could flats or an HMO bring in?
0:37:32 > 0:37:35Looking at a house of multiple occupancy,
0:37:35 > 0:37:38each room would bring in somewhere
0:37:38 > 0:37:41in the region of £300 per calendar month.
0:37:41 > 0:37:45Two-bedroom apartment - in this location -
0:37:45 > 0:37:48would be roughly £500 per calendar month.
0:37:48 > 0:37:52This is a great project with loads of options
0:37:52 > 0:37:54and a huge amount of potential.
0:37:54 > 0:37:56You've got all those students nearby -
0:37:56 > 0:37:57surely you can't go wrong.
0:37:57 > 0:38:01It's already making money, but it could make you a lot more.
0:38:01 > 0:38:04Let's see who got it when it went under the hammer.
0:38:06 > 0:38:09Lot 83. Impressive-looking building, isn't it?
0:38:09 > 0:38:11It's a three-storey mixed-use investment.
0:38:11 > 0:38:13It is only partially let at the moment.
0:38:13 > 0:38:15What shall we say? Shall we say 180?
0:38:15 > 0:38:17Thank you. 180, I have.
0:38:17 > 0:38:18I'm now looking for 185.
0:38:18 > 0:38:20I think we will do 185.
0:38:20 > 0:38:22185. 190. 195. 195?
0:38:24 > 0:38:25No. It is 190.
0:38:25 > 0:38:28Going once. Can I bring you back in at 191?
0:38:28 > 0:38:30Thank you. 192. 193.
0:38:30 > 0:38:33193 and a half. Can I say 194?
0:38:33 > 0:38:35Thank you very much. Can I say 195?
0:38:35 > 0:38:37195.
0:38:38 > 0:38:42196. It is against you again, now. Do you want to make it 196 for me?
0:38:42 > 0:38:44Here we go, then. For the first time at 195.
0:38:44 > 0:38:46For the second time at £195,000.
0:38:46 > 0:38:48I am going for the third and final time.
0:38:48 > 0:38:51I'll take a half bid, if it helps anybody at the last second.
0:38:51 > 0:38:54If not, £195,000.
0:38:54 > 0:38:57It's sold. Well done. 195.
0:38:58 > 0:39:02So, spot-on the guide price at £195,000.
0:39:02 > 0:39:05The large multipurpose building in Newcastle-under-Lyme
0:39:05 > 0:39:07was bought by Tomeh.
0:39:08 > 0:39:15Tomeh and wife Ronit met me back at the house to find out their plans.
0:39:17 > 0:39:19- Ronit, nice to meet you. - Nice to meet you.
0:39:19 > 0:39:21- Tomeh, nice to meet you. - Nice to meet you too.
0:39:21 > 0:39:24- And congratulations, sir. - Thank you very much.
0:39:24 > 0:39:25This place is huge.
0:39:25 > 0:39:28It is indeed. It was one of the reasons why I was interested in it.
0:39:28 > 0:39:30It has so much potential.
0:39:30 > 0:39:32Were you looking for something this big?
0:39:32 > 0:39:35Well, yeah. We're property investors
0:39:35 > 0:39:37so whenever we are going to look at properties,
0:39:37 > 0:39:39it is, "What is the potential it has?"
0:39:39 > 0:39:41"What are the different options we have to use?"
0:39:41 > 0:39:44And this one has a lot of options and potential.
0:39:44 > 0:39:46So how long have you been doing the property for?
0:39:46 > 0:39:49Well, we have a few properties in the United States,
0:39:49 > 0:39:5214 properties there, that cash-flow quite nicely.
0:39:52 > 0:39:58- Wow!- Yeah. And lately, we started involving in here,
0:39:58 > 0:40:01in the UK, and we're just building our portfolio.
0:40:01 > 0:40:04So why property? What were you both doing beforehand?
0:40:04 > 0:40:07So I was an executive in a software company, which...
0:40:07 > 0:40:11That's why we moved to the US and we came there in 2009,
0:40:11 > 0:40:13which, back then, it was the crisis.
0:40:13 > 0:40:14Houses were very cheap.
0:40:14 > 0:40:16We started buying them, we liked that.
0:40:16 > 0:40:20And then I moved here, or we moved here as a family,
0:40:20 > 0:40:23almost three years ago, again, for work.
0:40:23 > 0:40:25I recently actually quit my job and
0:40:25 > 0:40:27decided to do the property as full-time.
0:40:27 > 0:40:30Houses in the US right now are paying the rent
0:40:30 > 0:40:33and now we decided to create a portfolio here in the UK,
0:40:33 > 0:40:35and it's...
0:40:35 > 0:40:37- And the rest is history. - Yeah. We like property.
0:40:37 > 0:40:40- History and future. - And property likes us.
0:40:40 > 0:40:42They do indeed like property.
0:40:42 > 0:40:45They have another two more properties they're converting
0:40:45 > 0:40:48along with this beast, so clearly not fazed
0:40:48 > 0:40:50by lots of projects or lots of work.
0:40:50 > 0:40:54Tell me exactly what you're going to do with this beautiful building.
0:40:54 > 0:40:58Right, so one of the reasons why I bought it when I saw the property
0:40:58 > 0:41:01before we went to the auction, I have an apartment,
0:41:01 > 0:41:04a flat upstairs, which is immaculate.
0:41:04 > 0:41:05There is nothing to be done over there.
0:41:05 > 0:41:07It is already producing rent.
0:41:07 > 0:41:10And there is a shop downstairs that is also producing a rent.
0:41:10 > 0:41:14So we will try to make this part of the building into an HMO,
0:41:14 > 0:41:16a house of multiple occupancy.
0:41:16 > 0:41:18- OK.- So we will rent it by room.
0:41:18 > 0:41:21What would be your next option? What would you like to do?
0:41:21 > 0:41:24So if we won't be able to get permission for an HMO,
0:41:24 > 0:41:27for like, eight rooms HMO,
0:41:27 > 0:41:32so we will probably get permission to do a flat and five rooms HMO.
0:41:32 > 0:41:34- OK.- That's another option.
0:41:34 > 0:41:37- Yes.- So the upper one will be a three-room flat
0:41:37 > 0:41:39and then we can do five rooms HMO.
0:41:39 > 0:41:41OK, just break it up.
0:41:41 > 0:41:43And if we won't be able to get permission for that,
0:41:43 > 0:41:46we might be able to get permission for three different flats.
0:41:46 > 0:41:49For something, we will get the permission.
0:41:49 > 0:41:51Depending on what option you are allowed to do,
0:41:51 > 0:41:52you get planning to do,
0:41:52 > 0:41:54that is going to change your budget, obviously.
0:41:54 > 0:41:56- Correct.- Yes.- What is your budget?
0:41:56 > 0:41:58What is the top and bottom of your budget?
0:41:58 > 0:42:02I would say that for a property like that, depending on which way we go,
0:42:02 > 0:42:04probably ranging between £50,000-60,000.
0:42:04 > 0:42:08And along with that 50-60 grand budget,
0:42:08 > 0:42:11they are hoping to complete all the work in four months.
0:42:11 > 0:42:13But they will need to get change of use
0:42:13 > 0:42:16from office space into residential
0:42:16 > 0:42:19and they need to get consent for that preferred HMO option.
0:42:19 > 0:42:21So that might delay things.
0:42:21 > 0:42:23Are you enjoying being in the property world now
0:42:23 > 0:42:25more than your old job?
0:42:25 > 0:42:26Is it more fulfilling?
0:42:26 > 0:42:29Yes. Since we don't work, yes.
0:42:29 > 0:42:33I mean, right now, this is the thing that is actually financing our way
0:42:33 > 0:42:37of life and we like to enjoy our time, family, we have three kids,
0:42:37 > 0:42:40we enjoy going on vacation as a family
0:42:40 > 0:42:42and this is what allows us to do it.
0:42:42 > 0:42:45I mean, when I was working as an executive in the software company,
0:42:45 > 0:42:47I spent 180 days outside of this country,
0:42:47 > 0:42:49so travelling all the time.
0:42:49 > 0:42:51- I actually like being home a little bit.- Yes.
0:42:51 > 0:42:54You can sit, you can look at the properties,
0:42:54 > 0:42:57go out to the area where I invest once in a while
0:42:57 > 0:42:59and then find a gem like that.
0:42:59 > 0:43:00It's exciting, isn't it?
0:43:00 > 0:43:03- It is exciting.- Yeah. - I wish you all the best.
0:43:03 > 0:43:05- Thank you. - I hope you get what you want.
0:43:05 > 0:43:07- Thank you.- I hope so, too. Thank you very much.- Good luck.
0:43:07 > 0:43:10- Good luck.- Thank you.
0:43:11 > 0:43:13Now, that's an experienced couple.
0:43:13 > 0:43:16They know exactly what they want and how to achieve it.
0:43:16 > 0:43:19With a building of that size and all those options, that's some going.
0:43:19 > 0:43:24And, by the way, they're already achieving an 8% yield.
0:43:24 > 0:43:26How much will they add to that?
0:43:26 > 0:43:28You can find out later in the programme.
0:43:31 > 0:43:34Well, earlier on, we saw how one property turned out,
0:43:34 > 0:43:35but what about the other two?
0:43:35 > 0:43:39Will they look any different now and has all that money been well spent?
0:43:39 > 0:43:40Let's find out.
0:43:44 > 0:43:48Back to Wolverhampton now, and this two-up two-down.
0:43:49 > 0:43:52While it was an OK house, it had one striking feature.
0:43:54 > 0:43:58Guide price 29,000-34,000 quid.
0:43:58 > 0:44:00Inside, the house was in good condition
0:44:00 > 0:44:02but in need of a clear-out at the least.
0:44:02 > 0:44:06I hoped a few charities could benefit from whatever circumstances
0:44:06 > 0:44:08had meant there were still belongings here.
0:44:08 > 0:44:12Looking past the contents, it was a traditional two-up two-down,
0:44:12 > 0:44:15but it had a small extension housing the kitchen and bathroom.
0:44:15 > 0:44:18However, the flying freehold running underneath,
0:44:18 > 0:44:23and large trees in the garden, would require closer attention.
0:44:25 > 0:44:29It certainly grabbed the attention of council worker Tom and wife Joan,
0:44:29 > 0:44:33who paid £41,000 over the high end of the guide price.
0:44:33 > 0:44:36And Tom had already learned a valuable lesson.
0:44:38 > 0:44:41- We went above the budget, yeah. - How much above your budget?
0:44:41 > 0:44:45We were hoping to get it for around 50-55.
0:44:45 > 0:44:49I hate to go on about it, but it is important to stick to your budget
0:44:49 > 0:44:52and scrutinise the legal pack,
0:44:52 > 0:44:54because while the couple did read it,
0:44:54 > 0:44:56they missed additional fees,
0:44:56 > 0:45:01which meant another £5,000 on top of the £75,000 they paid.
0:45:01 > 0:45:04Conscious their profit margin might be taking a pounding,
0:45:04 > 0:45:08they were keen to learn from their first project, with a budget of
0:45:08 > 0:45:12£8,000-10,000 and the timescale of three to four months.
0:45:12 > 0:45:15And we returned 13 months later to see how they'd got on.
0:45:20 > 0:45:24The clutter is gone and in its place is a stylish, modern kitchen
0:45:24 > 0:45:26with brand-new fittings.
0:45:26 > 0:45:29The whole house has been rewired and by moving the bathroom wall,
0:45:29 > 0:45:32they've made the kitchen a little bigger.
0:45:37 > 0:45:40They have ditched the old bath in favour of the shower
0:45:40 > 0:45:42and by knocking down the dividing wall in the bathroom,
0:45:42 > 0:45:46it is a much brighter space, not to mention sparklier.
0:45:51 > 0:45:54The front reception room is looking much brighter,
0:45:54 > 0:45:58with fresh white walls and a brand-new electric fire.
0:46:00 > 0:46:02The second reception room looks just as smart.
0:46:02 > 0:46:04So how does it look upstairs?
0:46:08 > 0:46:10The two double bedrooms are looking fresh and clean,
0:46:10 > 0:46:14with white walls and new carpets.
0:46:17 > 0:46:20But did they get rid of those huge trees?
0:46:21 > 0:46:23Yes. Thankfully they've gone,
0:46:23 > 0:46:25and outside is fairly maintenance-free,
0:46:25 > 0:46:28although not very eco-friendly.
0:46:28 > 0:46:31However, some good planting might soften it in time,
0:46:31 > 0:46:34but, as we've seen, it's essential to check out
0:46:34 > 0:46:36the maximum size of your plants.
0:46:37 > 0:46:39Last, but not least,
0:46:39 > 0:46:42Tom and Joan have replaced the pitched roof on the kitchen.
0:46:42 > 0:46:45They have done a great job for their first attempt.
0:46:45 > 0:46:47So did they enjoy the process?
0:46:48 > 0:46:52When you see it on the television, Homes Under The Hammer,
0:46:52 > 0:46:56and they say, "it's great, it's this, it's that and the other,"
0:46:56 > 0:46:58for us it wasn't that.
0:46:58 > 0:47:04It wasn't that, it was...at times, very frustrating.
0:47:04 > 0:47:09It was all a little bit messy and it could've been done and dealt with
0:47:09 > 0:47:13a lot better, IF you'd got the time to do it.
0:47:13 > 0:47:16There is no denying it can be stressful,
0:47:16 > 0:47:19especially as Tom is now back at work full-time,
0:47:19 > 0:47:21which has taken its toll on the schedule.
0:47:22 > 0:47:25It has took a long time, let me just say that.
0:47:25 > 0:47:28It has took a very, very long time.
0:47:28 > 0:47:35And I'd advise anyone going into it to break it down and ensure that
0:47:35 > 0:47:41their own lifestyle and wellbeing is uppermost
0:47:41 > 0:47:44before they venture out into one of these projects
0:47:44 > 0:47:45because they're not easy.
0:47:47 > 0:47:51So the timescale went over and so did the £8,000-10,000 budget.
0:47:51 > 0:47:53Tom and Joan spent 25,000, which,
0:47:53 > 0:47:58along with the £75,000 purchase price and five grand in fees,
0:47:58 > 0:48:01takes the total spend to 105,000.
0:48:01 > 0:48:05It has been a long, hard road, but they have managed it.
0:48:05 > 0:48:09So are there any positives to take from the experience?
0:48:10 > 0:48:15I think the basic thing is the self-satisfaction of seeing
0:48:15 > 0:48:18the property in its state of repair, if you like,
0:48:18 > 0:48:20beforehand and seeing it now.
0:48:20 > 0:48:25And you can walk in and say, you know, it's really something.
0:48:25 > 0:48:27It really is. Everything has been done,
0:48:27 > 0:48:32from electrics to plumbing to pebbledash and roof repairs.
0:48:32 > 0:48:35It is easy to see how the cash racks up.
0:48:36 > 0:48:40Time to see if Tom and Joan can claw back some of that overspend
0:48:40 > 0:48:43on their £105,000 investment.
0:48:43 > 0:48:47We've invited along two local estate agents to tell us what they think
0:48:47 > 0:48:51of the changes, starting with the agent who saw it last time.
0:48:51 > 0:48:54They have been and they've modernised it out,
0:48:54 > 0:48:56they've made a very good job of it.
0:48:56 > 0:48:59It's mainly white all the way through,
0:48:59 > 0:49:03which does give people a blank canvas when they move in.
0:49:03 > 0:49:08My first impressions of the property is that it's nicely presented,
0:49:08 > 0:49:10very big, spacious rooms,
0:49:10 > 0:49:13nicely done out.
0:49:13 > 0:49:17Would suit a family, although there is only two bedrooms.
0:49:17 > 0:49:21It's fairly positive, but can Tom and Joan make a profit
0:49:21 > 0:49:24on that £105,000 investment?
0:49:24 > 0:49:30I feel the open market figures should be between £85-£90,000.
0:49:30 > 0:49:35I would imagine it would achieve in the region of £85-90,000.
0:49:35 > 0:49:38I'm quite surprised at that.
0:49:38 > 0:49:39I'd be quite happy with that.
0:49:39 > 0:49:42And if we could squeeze a little bit more then that would be great,
0:49:42 > 0:49:44but initially, we're going to start to rent.
0:49:44 > 0:49:49Not including taxes and fees, that is a potential £15,000 loss.
0:49:49 > 0:49:52But the rental features are more forgiving,
0:49:52 > 0:49:56with the agents giving a value of £550 per calendar month.
0:49:56 > 0:50:00And the couple have someone lined up to move in, paying just that,
0:50:00 > 0:50:04giving them a decent yield of around 6.5%.
0:50:04 > 0:50:07So their investment is bringing in the cash
0:50:07 > 0:50:09and they've gained invaluable knowledge
0:50:09 > 0:50:12should they ever have another go in the property game.
0:50:13 > 0:50:16We would do it again, but with a plan,
0:50:16 > 0:50:18because this was ad hoc, really.
0:50:18 > 0:50:23So I would advise anybody that was going into it for the first time to
0:50:23 > 0:50:28really look at their work life,
0:50:28 > 0:50:31as against the time and effort they can put into the property
0:50:31 > 0:50:34to do it up, really.
0:50:34 > 0:50:38Spot-on, Tom. Great advice, and good luck with the next one.
0:50:44 > 0:50:47Time now to return to the town
0:50:47 > 0:50:49of Newcastle-under-Lyme in Staffordshire,
0:50:49 > 0:50:51where I saw this charming property
0:50:51 > 0:50:54that was a mix of commercial and residential premises.
0:50:54 > 0:50:58# Darling, don't you go and cut your hair... #
0:50:58 > 0:51:01So, I'm in the commercial part of the building and, as you can see,
0:51:01 > 0:51:03it is a working salon.
0:51:03 > 0:51:06Morning, ladies. And it is in a great location.
0:51:06 > 0:51:09You've got a little bit of hanging space there for the coats,
0:51:09 > 0:51:12and out back there is even more salon space,
0:51:12 > 0:51:15more or less the same size as the front.
0:51:17 > 0:51:20The tenants were on a five-year lease,
0:51:20 > 0:51:23so this part of the building was already producing income.
0:51:23 > 0:51:25But the untapped potential here
0:51:25 > 0:51:28was the rest of the ground floor and first floor.
0:51:30 > 0:51:32This former office space was huge
0:51:32 > 0:51:34and the opportunity for further development
0:51:34 > 0:51:36continued to the top floor,
0:51:36 > 0:51:39which was a tenanted self-contained flat.
0:51:43 > 0:51:45It was hardly a project for beginners,
0:51:45 > 0:51:50which suited professional property developers Tomeh and his wife Ronit
0:51:50 > 0:51:53who got this at auction for a relative snip,
0:51:53 > 0:51:56bang-on the guide price at 195 grand.
0:51:56 > 0:52:00Tell me exactly what you are going to do with this beautiful building.
0:52:00 > 0:52:03We will try to make this part of the building into an HMO,
0:52:03 > 0:52:04a house of multiple occupancy.
0:52:04 > 0:52:08So if we won't be able to get permission to an HMO for, like,
0:52:08 > 0:52:11eight rooms HMO,
0:52:11 > 0:52:16we'll probably get permission to do a flat and five rooms HMO.
0:52:16 > 0:52:19The couple were determined to find a solution that could work for
0:52:19 > 0:52:21them and the property,
0:52:21 > 0:52:24but the salon would be staying as it's already bringing in cash.
0:52:25 > 0:52:30For the rest, they had given themselves a four-month timescale
0:52:30 > 0:52:32and a budget of 50,000-60,000.
0:52:32 > 0:52:35Nine months later, we're back to see
0:52:35 > 0:52:38if they managed to achieve one of their options.
0:52:45 > 0:52:49Yes, they have. There's now a bright and trendy kitchen.
0:52:49 > 0:52:53These communal rooms are on the ground floor,
0:52:53 > 0:52:57as is the first of the HMO rooms, complete with en suite.
0:53:00 > 0:53:04Upstairs on the first floor, there are four bedrooms.
0:53:04 > 0:53:07As the couple are hoping to attract young professionals, they've aimed
0:53:07 > 0:53:10for a stylish, contemporary finish.
0:53:10 > 0:53:14The rooms are very individual in colour and style.
0:53:15 > 0:53:16Two of the rooms are en suite,
0:53:16 > 0:53:20while the other two smaller rooms share a bathroom on this floor.
0:53:25 > 0:53:29They have kept the top floor as a self-contained flat,
0:53:29 > 0:53:32but it has gone from a two-bed to a three-bed
0:53:32 > 0:53:35which they will rent out on a per-room basis.
0:53:35 > 0:53:38So they have maximised the space here with eight rooms.
0:53:38 > 0:53:40But what was the biggest challenge?
0:53:42 > 0:53:45Getting the approval from the council,
0:53:45 > 0:53:49because they almost didn't give their approval
0:53:49 > 0:53:52and then, at the last minute, they did.
0:53:52 > 0:53:54Usually it is a two-month process.
0:53:54 > 0:53:56In this case it was almost three-and-a-half
0:53:56 > 0:53:58because we were rejected once
0:53:58 > 0:54:00due to changes that we needed to do in our plans.
0:54:00 > 0:54:02So it took us almost three-and-a-half to four months
0:54:02 > 0:54:03to get the planning.
0:54:03 > 0:54:07We then had to wait for our builder to finish another project before us
0:54:07 > 0:54:10and then the real project itself was only two months,
0:54:10 > 0:54:11or even less than that.
0:54:11 > 0:54:14It was actually quite condensed in terms of time
0:54:14 > 0:54:17but it was worth the wait for the great team
0:54:17 > 0:54:18that has done this work for us.
0:54:18 > 0:54:21It is never easy converting an older building.
0:54:21 > 0:54:24Stringent regulations on soundproofing it
0:54:24 > 0:54:26meant they had to upgrade the windows
0:54:26 > 0:54:29and install acoustic flooring underlay
0:54:29 > 0:54:32instead of lowering the ceilings, which would have been a shame.
0:54:32 > 0:54:37So after all the delays, has that eaten into their 50-60 grand budget?
0:54:37 > 0:54:40We actually reduced the budget to 45,000
0:54:40 > 0:54:45and we're probably going to spend about £2,000 more.
0:54:45 > 0:54:47We'll still be below the original budget,
0:54:47 > 0:54:49so we are quite happy with that.
0:54:51 > 0:54:53Under budget? That rarely happens on this show.
0:54:53 > 0:54:57What is the secret of their successful partnership?
0:54:57 > 0:55:00I manage more the family, he manages more the business,
0:55:00 > 0:55:03and we find a balance, like we do with everything.
0:55:03 > 0:55:07I can manage the portfolio and everything we are doing
0:55:07 > 0:55:10from anywhere in the world so it is a great way to live,
0:55:10 > 0:55:12it's a great way to make money
0:55:12 > 0:55:15and it's going to last for a very, very long time.
0:55:16 > 0:55:20Well, Tomeh and Ronit are certainly optimistic.
0:55:20 > 0:55:22So let's hear if two local estate agents
0:55:22 > 0:55:26are equally pleased about this £242,000 investment,
0:55:26 > 0:55:28starting with the agent who saw it first.
0:55:31 > 0:55:32Wow, what a difference.
0:55:32 > 0:55:34The property is a veritable TARDIS.
0:55:36 > 0:55:38Standing outside, you would not imagine there is as much
0:55:38 > 0:55:40accommodation as there actually is.
0:55:40 > 0:55:42First thoughts on the property is
0:55:42 > 0:55:44it's a very unique, substantial property.
0:55:44 > 0:55:46The finish is done to a very high standard.
0:55:46 > 0:55:48With the finish and, actually, the size of the rooms,
0:55:48 > 0:55:50it is sure to attract professionals.
0:55:52 > 0:55:55So what does this vast property hold in the way of profit?
0:55:55 > 0:55:58Well, both agents agreed that the current rental figure
0:55:58 > 0:56:01for the salon was about right, at £750 a month.
0:56:01 > 0:56:04But what about the new investment of the HMOs?
0:56:06 > 0:56:11Per room per week, I would say you're looking at around
0:56:11 > 0:56:13£100 mark.
0:56:13 > 0:56:15We would look to rent somewhere in the region
0:56:15 > 0:56:18of £110 per room per week.
0:56:18 > 0:56:24The top figure of £110 per week would see the five-bed HMO
0:56:24 > 0:56:28bringing in £2,200 per calendar month,
0:56:28 > 0:56:31although the couple are hoping to achieve a slightly higher figure.
0:56:31 > 0:56:35But of course, there is another three-bed flat to this property.
0:56:35 > 0:56:39So what could that be worth on the rental market?
0:56:39 > 0:56:40We'd look to rent for somewhere in the region
0:56:40 > 0:56:43of £500-550 per calendar month.
0:56:43 > 0:56:46You will be looking at a figure per calendar month
0:56:46 > 0:56:49of around about £550.
0:56:49 > 0:56:53Based on the agents' top values, the income from the salon,
0:56:53 > 0:56:58HMO and the three-bed flat comes in at 42 grand a year,
0:56:58 > 0:57:03which makes an impressive yield of just over 17%,
0:57:03 > 0:57:08although Tomeh and Ronit are hoping to achieve closer to 48 grand.
0:57:08 > 0:57:09And whilst tricky to value,
0:57:09 > 0:57:12as there's nothing similar on the market,
0:57:12 > 0:57:15the estate agents estimated the whole of the property
0:57:15 > 0:57:20at up to 350 grand which, based on their total investment of 242 grand,
0:57:20 > 0:57:24gives them a profit, minus taxes and fees, of £108,000.
0:57:26 > 0:57:29Usually, the way that we would have the valuer look at it would be based
0:57:29 > 0:57:34on the income. The income from that property is going to be about
0:57:34 > 0:57:36£48,000 per year.
0:57:36 > 0:57:41Usually they will multiply it by a number so I would estimate this
0:57:41 > 0:57:45entire building would be worth somewhere between 350 to £400,000,
0:57:45 > 0:57:47based on its income,
0:57:47 > 0:57:51which is really what we are aiming to achieve in this case.
0:57:51 > 0:57:54With their property empire coming along nicely,
0:57:54 > 0:57:57what's next for Tomeh and Ronit?
0:57:57 > 0:58:00Next up for us would be studios and one-bedroom flats,
0:58:00 > 0:58:04and we think there is a strong demand for those properties
0:58:04 > 0:58:07and it will be in the area of the north-west of England as well.
0:58:07 > 0:58:13- We like this area. So our journey is going to continue.- Yeah.
0:58:16 > 0:58:18We hope you've enjoyed the show
0:58:18 > 0:58:20and maybe learned a few lessons along the way.
0:58:20 > 0:58:24Yes, perhaps we have inspired you to have a go yourself.
0:58:24 > 0:58:26Join us next time for more Homes Under The Hammer.
0:58:26 > 0:58:27- Goodbye.- Goodbye.