Episode 47 Homes Under the Hammer


Episode 47

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Transcript


LineFromTo

Hello and welcome to the show.

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Now, buying a property

is probably the biggest investment

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that most of us will make

in our whole lives.

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Yeah. So, obviously,

it's a very stressful experience.

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But if you have a passion

for property, like we do, well,

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that stress can be worth it,

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so, why not think about buying

your next home under the hammer?

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We always talk about

the importance of preparation

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when buying a property at auction,

and that's because it is vital.

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Yes, the more you research, the more

you stack things in your favour.

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So, have the buyers on today's

show been listening to our advice?

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Let's hope so.

Here's what they bought.

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On today's show, I'm in Bassaleg,

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viewing this quirky cottage

that comes with premium real estate.

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Here we have

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the outbuilding.

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That doesn't look much smaller than

this former farm worker's cottage

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in Canterbury.

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I'm five foot three and a half

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and when I'm walking

into the light, that's low.

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But, fear not,

because a solution is at hand

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at this tired

two up, two down in Wallasey.

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Take out all of the walls.

Get rid of them. Boom-bish! Gone.

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All these properties

have been sold at auction

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and we'll find out who bought them

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and what they paid

when they went under the hammer.

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No? Sold to you.

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This is the village of Bassaleg,

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located two miles from Newport

city centre in south Wales.

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The Ebbw river runs through it,

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as does the A468 road,

and junction 28 of the M4 motorway

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is less than about a mile away.

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Pye Corner train station

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also provides a service into Cardiff

city centre

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and it only takes 20 minutes.

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All in all, it's a convenient

and picturesque place to live.

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Before I tell you about our lot,

the location -

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we are very close to

a busy and noisy main road.

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The house we're here to see is

in this very pretty 1828 building.

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It's now been split up

into four cottages.

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Ours is round the back.

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It's got two bedrooms

and had a guide price of 89 grand.

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This building has historical links

to the Morgan family,

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who owned one of

the best 17th-century mansions

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in the country.

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Well, this is definitely

on a smaller scale.

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Now...

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this feels really cosy

as you come in.

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Nice little hallway here.

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You've got your stairs

that are going up to the bedrooms

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but it does have

a sense of cosiness,

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as soon as you come into

the cottage.

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Take a few steps away

from the front door

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and you're into

the lounge-living area.

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As soon as I came in,

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I noticed that the floor

seems to be in really good condition

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but it's really got an old feel.

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You've got original beams,

you've got a brick wall over there.

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Before, you start thinking, right,

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I'll knock that down

and I'll spread that out,

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I'll build there,

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this is a listed building,

so you're going to need consent

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for anything that you want to do

inside and outside.

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Grade II listings

are vital in protecting features,

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like the arched window.

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If you're not keen on the ceiling

beams, or the stone and brick walls,

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I'd strongly advise you have a chat

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with your local authority

conservation officer

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to keep you right.

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But, having said that,

there are some features in here

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I'm not so keen on.

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And then we take a step up and

we find ourselves in this kitchen,

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which is surprisingly big

and spacious and in good condition.

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Got a nice deep sink there.

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Solid sink as well.

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You've got windows to the courtyard,

over there,

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and the stable door, as well.

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Another window here,

lots of light coming in.

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It's in good condition.

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You'd probably get away

with keeping most of this.

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At the moment, I'm more impressed

with the kitchen

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than I am with the lounge.

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# That don't impress me much... #

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The tired living room

may not be dressed to impress,

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but the local council

won't be impressed

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if you start ripping it apart.

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Carrying out unauthorised work

on a listed building

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is a criminal offence

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and owners can be forced

to reinstate any altered features,

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or even be prosecuted for doing so.

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Each building is different

but, broadly speaking,

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you'll need to get listed building

consent before you make any changes

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that can affect the character

of the building.

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Even rather narrow

impractical stairs, like these,

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could be protected by listing,

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providing fire regs

can be met with another exit.

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And then, there's this.

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Right. Made it through

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one of the smallest bathroom doors

I've ever been through,

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but if you think that is small,

have a look at this.

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One of the smallest baths

I have ever seen.

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The whole bathroom,

needs to be changed.

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Needs a bit of a rejig,

this place does,

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but before you start

knocking walls down

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to create some space,

remember, it's listed!

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# If it don't fit, don't force it.

Don't force it, don't force it

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# Give love a little room

Let it ease on in... #

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I've got to say, this is more like

a foot bath to a big lad like me.

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Overall, there's not a lot of space

to play with.

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Perhaps it would work better

as a wet room.

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That way, it would be more suitable

for modern living.

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At least there are

two bedrooms up here

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and the master

is a decent size as well.

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# If it don't fit, don't force it

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# Don't let your ego

Tell you when... #

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Now, in the auction catalogue

it said,

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this property has got an outbuilding

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and I've found it.

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Here we have

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the outbuilding.

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But... Not really.

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If you follow me over here,

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not only do you get

the kiddies' outbuilding,

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you actually get that outbuilding.

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Not only do you get the kiddies'

and the outbuilding,

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you get all of this as well,

if you can believe it.

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You've got a raised area there.

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You've got

all this back garden here.

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You can still hear the road noise.

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But that's not a problem.

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All you have to do is turn

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and face the fields.

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Look at the sheep.

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Think countryside, not cars.

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I'm not trying to pull the wool

over your eyes here, honestly.

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There's a lot of people that live

next door to busy roads

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and are not bothered by it at all.

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and are not bothered by it at all.

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If you get listed building consent,

to install triple glazed windows,

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If you get listed building consent,

to install triple glazed windows,

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you can have a good night's sleep

and you won't have to count sheep.

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Just count the noughts

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on how much it's going to

cost you to install them.

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Time to ask a local estate agent

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to give his thoughts

on the cottage, guided at 89 ground.

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First, does he think the road

will put people off?

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I think the road's going to be

a real challenge.

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It doesn't necessarily detract

from the amount of profit

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they could make on the property.

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It could just take longer

to actually find the person

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who is willing to tolerate

the noise.

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It's not great news for investors

wanting to sell,

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but it's not a deal-breaker either.

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What about the next

potential hurdle?

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The property is listed

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and there are going to be

some challenges that

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that presents, in terms

of making some changes,

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but I think that most

of the sensible changes

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that an investor's going to want

to make are going to be possible.

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It just may take slightly longer

to achieve them.

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So, what kind of figure could

the house achieve once renovated?

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If it's done to the right standard,

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I think they'll be able to achieve

about £150,000.

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This is a unique

and historic property.

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It does need a bit of TLC

and, don't forget,

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it is a listed building,

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so it could cause you some

complications when renovating.

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Let's see who wanted to take it on

when it went under the hammer.

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Next up, we've got a two bedroom

cottage in sought-after location,

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in need

of some modernisation.

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OK, so we're looking to start

the bidding on this at 90,000.

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Do I see 90,000?

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Do I see 90,000

to get things going on it?

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90,000 is bid. Thank you.

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90,000. Do I see 91?

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91.

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Thank you.

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91. Sorry, 92.

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Yeah. 92.

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93?

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93. 94?

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94. 95?

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95. 96?

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96. 97?

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98. New bidder, 98.

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99? 99 is bid.

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Do I see 100?

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Do I see 100?

Are you coming back in?

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Anybody else here for it?

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No?

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Sold to you, sir. 99,000.

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I can't see it

when it's that way round.

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Thank you very much. Cheers.

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Number 80.

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# Upside down, boy, you turn me

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# Inside out... #

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The successful bid of £99,000

came from Brian, on the left,

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and Bob on the right.

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They are friends

and now business partners.

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This is their second property

renovation as a pair,

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and I caught up with them

to find out their plans.

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Bob, nice to meet you.

Nice to meet you.

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Brian, same to you, sir.

And you.

Congratulations, lads.

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Thank you.

Before we start,

tell me about this place.

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What made you two want to buy it?

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It was something

a little bit different.

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We understand it's a Grade II listed

property,

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so it's going to certainly give us

some interesting challenges,

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if not difficult challenges.

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Is that not something

that frightens people away,

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it being a listed building?

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I think it's just there's a lot

of character in the building.

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You know, it was built 1820s

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and there's a lot of quirky

character type features about it,

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the windows, things like that.

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So was that one of the things,

Brian, that sort of sucked you in,

then,

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to want this place?

It's a bit different.

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Yeah, I mean,

we've done one renovation before

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and it was

a very traditional terraced house

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that was in quite a bad state

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and we just wanted to do something

a little bit different.

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OK.

And, you know,

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we're after a challenge and

a Grade II listed old building

is a challenge.

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Bob and Brian have been friends for

25 years but have only just started

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property developing, so is this

something of a career change?

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We were both mechanical engineers.

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We both had our own

limited companies,

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so we'd worked together

for many years

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and I got made redundant...

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..about five years ago now.

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I used to help family and friends

do kitchens and bathrooms

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and then I just thought it would be

a great thing to do full-time

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when I got made redundant, so...

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OK.

Just over a year ago,

I got made redundant also, and...

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..I think it's good to do something

completely different

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to what we were doing, you know.

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We had office jobs

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and we were in a very kind of

hi-tech industry.

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And this is a very physical

kind of type of work

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and a different challenge.

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Good on you.

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Since being made redundant,

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Bob has become

a fully qualified spark,

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so that should help

with some of the renovations.

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They'll be doing

a full refurbishment

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and plan on restoring

some character features

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and enlarging

that tiny bathroom.

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They have a budget of 20 grand

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and are hoping to get the work done

in about three to four months.

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But what's the plan for the house

once it is complete?

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Ideally, we would sell it, er,

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if we can get a quick sale

at the right price.

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We're not against renting it

if that's a better option

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but we're going to

speak to the agents

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and see what their valuations are

when we've done it.

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And we'll also get the agents

in straightaway

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to go through what we want to do

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and find out what they think

about our plans.

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What about that busy main road?

It's very noisy.

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Yeah. I mean, it is and

when we did come to the viewing,

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we spoke to the neighbours

next door,

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and they invited us into

their house.

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We went in and...

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..it is quite quiet when you've got

the right windows in.

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So, they don't seem to be

that badly affected by the noise,

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but, I do agree, it is busy

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and it's not ideal

to have that road there, so...

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Well, it's not really, but if your

neighbours are inviting you in...

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Yeah.

Yeah.

Already...

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I know. We've got friendly

neighbours.

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You're in already, aren't you?

Yeah, yeah.

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When you come and stay in the week,

you can pop in.

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That's right, yeah.

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Get your sugar

and your milk for free.

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Good luck to you, Bob.

Hope it works out.

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Thank you very much.

Brian, good

luck.

Cheers, thank you, Dion.

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So, Bob and Brian are striding

forward with their new career.

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They have got a lot of work to do

and some decisions have to be made.

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Big question I ask is,

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will they find someone

to buy this place

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and will they make the right profit?

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You can find out how they get on

later in the programme.

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The city of Canterbury is renowned

for having one of the prettiest

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medieval centres in England -

with those narrow streets,

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it really is easy to transport

yourself back in time.

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The outskirts of the city

are beautiful, too.

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Within a few minutes, you're gazing

over some stunning countryside.

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I'm currently around two miles

from Canterbury city centre

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and the property I'm here to see

is a former farm worker's cottage.

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It had a guide

price of £170,000 plus

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with three bedrooms

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and I'm led to believe

it's behind this hedge.

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This is going to be a good one.

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I'm hedging my bets!

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Ooh, this is not what I expected

at all.

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I think farm worker's cottage,

I think, small, quaint.

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This is three floors.

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It's semidetached,

it's really substantial.

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Let's go explore.

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Into a decent-sized reception room,

pretty dilapidated.

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It looks like no-one's been here

for a while. A door to stairs.

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Old school. You've got your curtains

to keep out the draft.

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Hollow walls,

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and it has the feel of, this is

all your living space down here.

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Quite a nice flow, because here,

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you've got a really big kitchen.

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OK, everything needs to come out and

be modernised, but I love the doors.

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It gives a bit of rustic charm.

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I like that. It feels like

a farmhouse and, then,

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that's good for extra storage,

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or you could think

about knocking that down

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and making this kitchen area bigger.

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Maybe a dining table.

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You have a farm stove.

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This would have heated up

the whole room

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and you've got your clothes line

here.

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The clothes would have dried.

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You can feel that somebody lived

here and it was a proper home.

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Even though it was some time ago.

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And then, let's see...

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You have your bathroom downstairs,

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which is not ideal unless there's

another one upstairs.

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For layout, you want it along with

your bedrooms,

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and then this could be considered a

waste of space. It's a hall area.

0:15:180:15:22

I quite like it.

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It's a place in the countryside to

put your muddy boots,

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for the kids to throw things around,

a bit of utility room.

0:15:250:15:29

There's a lot going on, and I'm

interested to find out more.

0:15:290:15:33

# Things ain't working out

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# Down at the farm... #

0:15:380:15:41

OK, things aren't that bad,

0:15:410:15:43

but I think a layout reshuffle

would be good here.

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I'd get some expert advice about

taking down a wall

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and opening this up

as a kitchen-diner.

0:15:500:15:53

However, one thing to note is that

this is a Grade II listed building,

0:15:530:15:57

so, you'll need to check with the

local planning department first.

0:15:570:16:01

Upstairs, a decent-sized

bedroom here.

0:16:010:16:05

I do spot some damp.

0:16:050:16:07

You want to get that checked out to

find out exactly how extensive

0:16:070:16:11

that is, if it's a current problem.

0:16:110:16:13

And then through to another bedroom.

Again, a decent size,

0:16:130:16:15

but what I do feel about this house

is that it looks strong.

0:16:150:16:19

The bricks outside, really strong,

0:16:190:16:21

substantial and it feels flimsier

inside.

0:16:210:16:24

For example, this wall, it really

wouldn't take much

0:16:240:16:28

to bring that down.

You know, I feel like I could almost

0:16:280:16:30

lean on it or get a toffee hammer to

it and it would come down.

0:16:300:16:34

I've also spotted lots of different

types of windows,

0:16:340:16:36

so you've got metal downstairs,

you've got wooden here,

0:16:360:16:39

you've got plastic through there.

0:16:390:16:40

You'd probably want to get new

windows in and make them uniform.

0:16:400:16:45

The ceilings are really low and,

you know,

0:16:450:16:48

I'm five foot three and a half,

0:16:480:16:49

and when I'm walking into the light,

that's low.

0:16:490:16:52

Let's find out what's on the top

floor.

0:16:520:16:55

# Limbo lower now

Limbo lower now

0:16:550:16:59

# How low can you go? #

0:17:000:17:04

OK, the low ceilings can give you

a cosy cottage feeling,

0:17:040:17:07

but maybe the lighting

needs a rethink.

0:17:070:17:10

And when it comes to the next floor,

0:17:100:17:12

you really will have to brush up

on those limbo lessons.

0:17:120:17:16

It's an odd layout.

0:17:160:17:18

There's a room as you enter,

0:17:180:17:19

but as it's not closed off from the

entranceway,

0:17:190:17:22

it's unlikely to be considered

a bedroom.

0:17:220:17:24

Though, beyond that

is the final third bedroom.

0:17:240:17:27

Subject to planning, of course,

0:17:270:17:29

you could open this up as a master

bedroom with en suite.

0:17:290:17:33

Then at least there would be two

bathrooms in the house,

0:17:330:17:37

but before you get too excited,

0:17:370:17:39

I have been keeping something

from you.

0:17:390:17:42

As someone who chose to build their

home in the middle of a field,

0:17:420:17:45

I love the countryside setting.

0:17:450:17:47

It's fabulous. But this is why we

say "Do your homework."

0:17:470:17:50

I happen to know there are plans

afoot to change this landscape,

0:17:500:17:54

with up to 4,000 new homes.

0:17:540:17:57

So, if you do your homework,

that's fine.

0:17:570:17:59

You'd know that times

could be about to change.

0:17:590:18:01

That could come as a surprise to

anyone investing

0:18:040:18:06

in a country lifestyle, but how will

it affect the area overall?

0:18:060:18:10

And could it affect the value of the

house?

0:18:100:18:14

Here's a local estate agent to tell

us more.

0:18:140:18:17

The property's situated in a really

interesting location,

0:18:170:18:20

because the new proposed development

is right on the fringe,

0:18:200:18:24

which is about to cover this whole

area to the side.

0:18:240:18:28

Usually, this may worry someone

investing in this area,

0:18:280:18:31

however, there's going to be two...

0:18:310:18:33

a couple of schools,

surgeries, shops,

0:18:330:18:36

and it's going to really raise,

obviously, the local amenities,

0:18:360:18:40

that are going to be right on the

doorstep, and it's become a very

0:18:400:18:43

fashionable, desirable

area to live in.

0:18:430:18:45

I think because of this, in about 15

years or so, when it's completed,

0:18:450:18:49

the property price is actually going

to go up.

0:18:490:18:52

During that time, there's going to

be a lot of people working in

0:18:520:18:55

the area, looking to rent a property

in a convenient location

0:18:550:18:58

to the development,

which is going to make this

0:18:580:19:00

a really sound investment on the

rental side as well.

0:19:000:19:03

Interesting!

0:19:030:19:04

So, this could be a good

short-term investment

0:19:040:19:07

with an added bonus later.

0:19:070:19:09

So, it sounds like maximising the

space, potentially for

0:19:090:19:13

construction workers, might be a

good move.

0:19:130:19:16

What could it be worth as a

four-bed, rented out,

0:19:160:19:19

on a room-by-room basis?

0:19:190:19:21

As an HMO, it should make between

0:19:210:19:23

£1,200 and £1,600

0:19:230:19:25

per calendar month.

0:19:250:19:27

Of course, letting this as a house

of multiple occupation, or HMO,

0:19:270:19:32

does come with its own safety

regulations

0:19:320:19:34

you would have to adhere to.

0:19:340:19:36

But it's still food for thought.

0:19:360:19:38

What about renovating and selling

it on,

0:19:380:19:41

either as a three-bed, as it is now,

0:19:410:19:44

or converting the second loft room

into a fourth bedroom?

0:19:440:19:47

As a three-bedroom, all done up,

0:19:470:19:49

I think the owner is looking to

achieve

0:19:490:19:52

about £300,000-330,000.

0:19:520:19:55

As a four-bedroom house, I think the

property could achieve about

0:19:550:19:58

£350,000-360,000.

0:19:580:20:02

DOOR SQUEAKS

0:20:020:20:04

Oh, I love a squeaky door.

0:20:040:20:05

Now, unusually for a farm worker's

cottage,

0:20:050:20:07

this place is pretty big.

0:20:070:20:09

Yes, it's tired, it's dated,

0:20:090:20:11

you really need to think about that

layout,

0:20:110:20:13

but with the addition of that lovely

garden,

0:20:130:20:15

this could make a great family home.

0:20:150:20:18

Let's find out who agreed when it

went to auction.

0:20:180:20:20

It's a semidetached cottage.

0:20:200:20:22

Needs improvement.

0:20:220:20:23

Start me at £170,000.

0:20:230:20:25

170 to start me.

0:20:260:20:28

170 I have.

0:20:280:20:29

175 do I see?

0:20:290:20:31

At 175 I have.

0:20:310:20:34

180.

0:20:340:20:35

After a steady battle between the

room and an online bidder,

0:20:350:20:39

we return with the bidding at

£207,000.

0:20:390:20:43

207 on the internet.

0:20:430:20:45

210. 210 I have.

0:20:450:20:47

And 212. 212 I have on the internet.

0:20:470:20:50

212. And I'll take 14 if it helps.

0:20:500:20:53

213 is bid and 214.

0:20:530:20:56

Out on the internet, at 213,000.

0:20:560:20:58

214 do I see?

0:20:580:21:01

At 213,000.

0:21:010:21:03

For the first time at 213,000.

0:21:030:21:06

For the second time at 213,000.

0:21:060:21:09

213,000, third and final time.

0:21:090:21:12

Are you all done?

0:21:120:21:13

Sold at 213,000.

0:21:130:21:15

Well done, sir.

0:21:150:21:16

That successful bid of 213 grand

on the day

0:21:180:21:21

came from Derek, and I caught

up with him

0:21:210:21:24

back at the house to find out

exactly what he had planned

0:21:240:21:27

for this new acquisition.

0:21:270:21:29

Derek, pleased to meet you and

congratulations!

0:21:300:21:34

Thank you very much.

So, you've got

yourself this cottage.

0:21:340:21:36

Certainly did, yeah.

0:21:360:21:38

Why this one?

0:21:380:21:40

Uh...it was local.

0:21:400:21:42

Um, affordable.

0:21:420:21:44

I had a limit of 220.

0:21:440:21:46

So I was quite pleased that I got it

under my budget.

0:21:460:21:49

Yeah.

Because it allows me to spend

a little bit more

0:21:490:21:53

on the doing it up, you know, so...

0:21:530:21:54

Good, and you said it's local -

local to where you live?

0:21:540:21:57

Yes.

Where's that?

Yes.

0:21:570:21:59

I live just the other side of

Canterbury.

0:21:590:22:02

You look quite at home, laid-back.

0:22:020:22:04

Is this something you've done

before?

0:22:040:22:06

I get in a lot of trouble

for being laid-back!

0:22:060:22:08

THEY LAUGH

0:22:080:22:10

# Don't worry

Be happy

0:22:120:22:17

# Don't worry

Be happy now... #

0:22:170:22:20

The very laid-back Derek

0:22:200:22:21

is tackling what's his fifth

property renovation,

0:22:210:22:24

and he's happy this is going to be

his last

0:22:240:22:27

before he retires from the

building trade.

0:22:270:22:29

He's managed to rope in his brother,

who's a plumber, on to

0:22:290:22:32

the project, too, and not just for

his skills.

0:22:320:22:35

He came with me,

0:22:360:22:38

and, uh...at the auction, and I

said, "Can you lend me some money?"

0:22:380:22:42

He said, "Yeah, I don't see why

not."

0:22:420:22:45

And he was meant to be going to

Portugal to buy a property,

0:22:450:22:49

so when he come home and said to the

Mrs,

0:22:490:22:51

"I've lent Derek some money..."

0:22:510:22:54

He was in the bad books!

0:22:540:22:56

He was... Well, yeah, he was.

0:22:560:22:58

Yeah.

So, your brother's playing

quite a big part in this.

0:22:580:23:01

What's his name?

He's Bob.

0:23:010:23:03

Bob.

Yeah, and he's quite well known

in Canterbury, so...

0:23:030:23:07

Why?

He's a bit of a lad.

0:23:070:23:09

Yeah.

He's gobby.

0:23:090:23:10

Yeah!

He's gobby! He's just a bit

camera-shy.

0:23:100:23:14

Bob might be camera-shy but at least

he's not work-shy, because the pair

0:23:170:23:20

will be doing most of the work

themselves,

0:23:200:23:23

including opening up the downstairs

to make a kitchen-diner,

0:23:230:23:26

adding a driveway and garage and

adding a toilet to the second floor.

0:23:260:23:31

Permission dependent, of course.

0:23:310:23:33

And to do all that,

0:23:330:23:34

they have an adequate budget of

£20,000-25,000,

0:23:340:23:38

and are hoping to manage it in five

months.

0:23:380:23:42

The thing that really jumped out at

me was when I heard about

0:23:420:23:44

development plans...

Yes.

0:23:440:23:46

..really nearby, to make 4,000

homes.

0:23:460:23:50

Yeah.

400 would be a lot.

0:23:500:23:52

4,000, that changes the dynamic of

the whole area.

0:23:520:23:55

It's spread over quite a bit of

ground up the top of Canterbury.

0:23:550:23:57

Yeah.

But I think it will help

with this property.

0:23:570:24:03

So, you're pretty positive about the

development?

0:24:030:24:06

I'm very positive about it, yeah.

0:24:060:24:08

Good. What's your plan for the house

when it's done?

0:24:080:24:11

We're going to sell in eight

months' time.

0:24:110:24:14

I'm...hoping to retire,

unless another house comes along.

0:24:140:24:19

But, no, it's for sale.

0:24:190:24:23

If there's going to be 4,000 houses

being built,

0:24:230:24:26

that's a long time to build houses.

0:24:260:24:28

You could potentially get great

rental from the people

0:24:280:24:32

working on the site, in the interim.

Have you thought about that?

0:24:320:24:35

No, not at all. I suppose you could

but no,

0:24:350:24:37

I hadn't thought of that whatsoever.

0:24:370:24:41

It all depends how soon my brother

wants his money back!

0:24:410:24:43

THEY LAUGH

0:24:430:24:45

I cannot wait to see what you do

with the place.

0:24:450:24:48

I really can't, and the best of

luck, Derek.

0:24:480:24:50

Thank you.

Thank you very much.

0:24:500:24:51

I think Derek and Bob are onto a

winner here.

0:24:530:24:56

With so many houses being built

nearby,

0:24:560:24:58

it could truly boost the rental

income and also that resale value.

0:24:580:25:02

What will Derek and his brother

decide to do,

0:25:020:25:05

and will bashful Bob make an

appearance?

0:25:050:25:07

You can find out later in the show.

0:25:070:25:09

Still to come...

0:25:100:25:12

I'm on a one-man

mission to fit in some first-floor

0:25:120:25:14

facilities in Merseyside.

0:25:140:25:16

It'd be nice to get a bathroom of

some sort up here.

0:25:160:25:20

And we'll find out if Derek and Bob

are on the same page in Kent.

0:25:220:25:27

We're doing it by the book,

hopefully.

0:25:270:25:29

Let's head back to the village of

Bassaleg,

0:25:340:25:36

just two miles outside Newport.

0:25:360:25:39

Next to a very busy main road was

this charming building,

0:25:390:25:43

built way back in 1828.

0:25:430:25:45

It had been converted into four

cottages,

0:25:450:25:48

but ours was at the back

0:25:480:25:51

and had a guide price of £89,000.

0:25:510:25:54

Unsurprisingly, this Grade II listed

building was packed with original

0:25:540:25:59

features, but that did mean consent

would be needed

0:25:590:26:02

for any major changes.

0:26:020:26:04

Fortunately, the kitchen had already

been modernised, and it wasn't a bad

0:26:040:26:08

size for a small cottage.

0:26:080:26:10

The same, however, couldn't be said

elsewhere.

0:26:100:26:13

Have a look at this.

0:26:150:26:16

One of the smallest baths I have

ever seen.

0:26:190:26:23

And the rest of the minuscule

bathroom made me feel a little bit

blue, too.

0:26:230:26:28

At least two of the bedrooms were

relatively normal

0:26:280:26:31

in size and, of course,

0:26:310:26:32

there was that positively massive

back garden.

0:26:320:26:35

When it went to auction,

0:26:360:26:37

pals Brian and Bob bought this

period home for £99,000.

0:26:370:26:42

This is their second renovation

project as business partners,

0:26:420:26:46

after they were both made redundant

just a few years ago.

0:26:460:26:49

I think it's good to do something

completely different to what we were

0:26:490:26:52

doing, you know...

Yeah.

..we had

office jobs, and we were in a very

0:26:520:26:55

kind of hi-tech industry.

Uh-huh.

0:26:550:26:58

And this is a very physical kind of

type of work.

Yeah.

0:26:580:27:01

And a different challenge.

0:27:010:27:03

If it was a challenge they were

after,

0:27:030:27:05

this Grade II listed building fit

the bill.

0:27:050:27:08

The pair planned on a full

renovation

0:27:090:27:11

and had a budget of 20 grand,

0:27:110:27:13

and they planned to do it in three

to four months.

0:27:130:27:15

We're back seven months later to see

how they got on.

0:27:160:27:19

Well, guys, you've done well.

0:27:230:27:25

It's really nice.

0:27:250:27:26

The original features have been

enhanced,

0:27:260:27:29

and some very sympathetic ones

added.

0:27:290:27:32

The dated fire has been replaced

with a real wood burner, with slate

hearth.

0:27:330:27:37

But what about the kitchen that was

already fairly modern?

0:27:370:27:41

Brian and Bob have gone the whole

hog there,

0:27:440:27:46

replacing the entire kitchen and,

boy, it looks very, very good.

0:27:460:27:50

So, Brian, did the grade II listing

cause any problems?

0:27:510:27:54

We got the conservation guy from the

council round,

0:27:560:28:00

and he went through the

whole house,

0:28:000:28:02

and we had some ideas of what we

wanted to do or what we were

thinking of doing.

0:28:020:28:07

It was very early at that stage, and

he basically didn't

0:28:070:28:11

like many of them, so...

0:28:110:28:12

So...

0:28:130:28:15

But we...decided in the end

0:28:150:28:17

that we would do as little as

possible that would have...

0:28:170:28:21

would require any permissions

from the Grade II listing

people.

0:28:210:28:25

By keeping the original features of

the building as unchanged as

0:28:250:28:29

possible, the only alteration they

needed permission for was moving

0:28:290:28:33

the wall to make that tiny bathroom

a bit bigger.

0:28:330:28:35

Stealing space from the bedroom

means it's a bit on the small side,

0:28:360:28:39

but it's still OK.

0:28:390:28:41

Clearly the friends have been hard

at work.

0:28:410:28:44

My role here,

0:28:440:28:47

as a trained electrician, I've

pretty much rewired the place.

0:28:470:28:52

I've made all the doors and pretty

much all the woodwork,

0:28:520:28:56

the doorframes,

0:28:560:28:57

skirtings, did the tiling,

0:28:570:29:00

fitted the kitchen.

0:29:000:29:02

That's pretty much it, I think.

0:29:050:29:06

That's a quite impressive list from

Bob.

0:29:070:29:10

Brian, you're next.

0:29:110:29:12

I was...focusing quite a lot

0:29:120:29:15

on things like the plastering.

0:29:150:29:18

That's something that I've learned a

bit about through the course

0:29:180:29:22

of the project.

0:29:220:29:24

Also, I done the plumbing,

0:29:240:29:27

the water side, obviously not the

gas.

0:29:270:29:30

That's something we need a gas

engineer to come in and do.

0:29:300:29:33

I've done a lot of the decorating.

0:29:330:29:35

I can't tell you how much painting

there is involved in this property,

0:29:350:29:40

all of these beams, all the

ceilings,

0:29:400:29:42

all the walls, all the woodwork.

0:29:420:29:45

All the outside's been painted as

well.

0:29:450:29:48

So, a lot of the decorating side

as well.

0:29:480:29:52

Doing that long list of works

themselves means they've come in

0:29:520:29:55

bang on budget at £20,000.

0:29:550:29:58

Though they did run over their three

to four month timescale,

0:29:580:30:01

so, why was that?

0:30:010:30:03

We have ended up

maybe five to six months,

0:30:030:30:06

but we have also had some time off.

0:30:060:30:09

I became a grandad and I took some

time off there.

0:30:090:30:13

I also had a bit of a back issue at

one point in the project.

0:30:130:30:17

So we have had the odd

bit of time off,

0:30:170:30:21

which has maybe extended

the length of the project.

0:30:210:30:25

Congratulations, Brian,

on the fantastic news,

0:30:250:30:28

but will the agents

be congratulating the guys on

0:30:280:30:31

the work they've done on this quirky

cottage?

0:30:310:30:33

Let's see what two local agents

think of

0:30:330:30:36

Brian and Bob's £190,000

investment.

0:30:360:30:39

First impressions of the

property are it's very nice.

0:30:390:30:42

It's done to a nice standard.

0:30:420:30:44

And it's a quirky property.

0:30:440:30:47

It's obviously been done up to

a decent standard.

0:30:470:30:51

A new kitchen has been added.

0:30:510:30:53

And the bathroom has

0:30:530:30:55

been extended and improved.

0:30:550:30:58

But it's a nice little property.

0:30:580:31:00

It seems to have won the agents

over,

0:31:000:31:03

but will that be reflected in the

figures?

0:31:030:31:06

Brian and Bob are planning

to sell on,

0:31:060:31:08

so what could it be worth on the

sales market?

0:31:080:31:10

I think this property could achieve

in between

0:31:140:31:16

£140,000-150,000.

0:31:160:31:19

On the sales market,

0:31:190:31:21

I would imagine that this would have

a sales figure of between

0:31:210:31:24

£145,000-155,000.

0:31:240:31:28

Disappointed.

0:31:280:31:30

Yeah, I think they are a little bit

low compared to the

0:31:300:31:34

valuations we have had before.

0:31:340:31:38

Obviously, it wasn't finished

before but, hopefully,

0:31:380:31:41

that hasn't made a difference.

0:31:410:31:43

We had a range of between

0:31:430:31:46

something like 150-195,

0:31:460:31:49

which is quite a big range, but it

is a fairly unique property,

0:31:490:31:53

so, maybe it's not that easy to

value.

0:31:530:31:57

As we say on the show,

0:31:570:31:59

a house is only worth as much as

somebody is willing to pay.

0:31:590:32:02

So, who knows what that will be

here.

0:32:020:32:04

As it stands, the agents' top

valuation

0:32:040:32:07

would mean a pre-tax profit of

36 grand,

0:32:070:32:09

so, will they be taking on any

more property any time soon?

0:32:090:32:14

Yeah, we're definitely looking

forward to working again on other

0:32:140:32:18

properties. It went very well.

0:32:180:32:21

We've had very few disagreements

0:32:210:32:24

and, yeah, we pretty much think

alike,

0:32:240:32:26

so, yeah, looking forward to the

next project.

0:32:260:32:28

I'm in Wallasey, a small town in the

borough of Wirral

0:32:340:32:37

that sits at the mouth of the

River Mersey.

0:32:370:32:40

With excellent transport links to

its metropolitan neighbour

Liverpool,

0:32:420:32:46

it's a popular spot for investors

0:32:460:32:48

and first-time buyers to find a

bargain.

0:32:480:32:51

Well, on the Wirral, but only two

minutes from the tunnel to Liverpool

0:32:530:32:56

is the property I'm here to see.

0:32:560:32:58

It's a two-bed mid-terrace.

0:32:580:33:00

Guide price £30,000-35,000.

0:33:000:33:03

Well, a bit ramshackle on the

outside.

0:33:030:33:05

Let's have a look inside.

0:33:050:33:07

So, what have we got?

0:33:090:33:11

Well, pretty - eek -

standard layout.

0:33:110:33:13

I don't know why I just made a

sound like a small mouse there,

0:33:130:33:16

but whatever. Up the stairs, to the

bedrooms.

0:33:160:33:18

Surprise, surprise. You know,

0:33:180:33:20

what I would do with this particular

kind of house, what do you think?

0:33:200:33:23

Open it up. This wall, unnecessary.

0:33:230:33:26

Take it out. Let's have an open-plan

staircase there.

0:33:260:33:30

If you could be bothered,

0:33:300:33:32

that chimney breast doesn't half

dominate this room.

0:33:320:33:36

It's not cheap, but you might want

to consider taking that out all

0:33:360:33:39

the way up to open up that room,

because it does feel a little bit

0:33:390:33:42

cramped, even though you've got that

bay window. Strangely enough,

0:33:420:33:45

as you sort of move into the

property,

0:33:450:33:47

it actually feels a bit bigger.

0:33:470:33:49

This sort of kitchen-living area,

0:33:490:33:52

is actually quite pleasant, and my

guess is that bit there was actually

0:33:520:33:55

some kind of an extension at some

point.

0:33:550:33:58

But it does give this really nice

liveable area.

0:33:580:34:00

Again, you know what?

0:34:000:34:02

I know I keep banging on about this,

but just rip all these walls out.

0:34:020:34:04

You don't need them.

Take that wall out.

0:34:040:34:07

One massive great room down here.

0:34:070:34:09

It would make the whole house feel

so much better.

0:34:090:34:12

As it is, you've got the kitchen

area there.

0:34:120:34:14

Through to your bathroom and loo,

it's a fairly standard layout.

0:34:140:34:18

But scope by just basically spending

a lot of time with a sledgehammer,

0:34:180:34:22

having spoken to a structural

engineer first,

0:34:220:34:25

and putting the requisite beams

above, take out all the walls.

0:34:250:34:28

Get rid of all of them. Bish - gone!

0:34:280:34:30

However, I can't emphasise enough,

0:34:300:34:33

those RSJs, or rolled steel joists,

are vital.

0:34:330:34:37

In order to pass building regs,

0:34:370:34:39

a structural engineer needs to do

the maths

0:34:390:34:41

to ensure the correct amount

0:34:410:34:43

and type of steel is going to hold

up the floor above.

0:34:430:34:46

The same goes for the chimney

breast.

0:34:460:34:49

All of this would be costly.

0:34:490:34:51

So, if this was an investment

property,

0:34:510:34:54

you'd have to weight up whether the

spend was likely to get you

0:34:540:34:57

any additional profit.

0:34:570:34:58

So, upstairs and two decent-sized

0:35:010:35:04

bedrooms, but with scope.

0:35:040:35:07

Scope perhaps for an en suite.

0:35:070:35:10

This little corner area here in this

front bedroom,

0:35:100:35:14

just about big enough for a shower,

perhaps, or just a toilet.

0:35:140:35:18

It'd be nice to get a bathroom

of some sort up here.

0:35:180:35:21

That's one option. But there's an

even better one, I think,

0:35:210:35:24

in this rear bedroom. It's not huge,

but look what you've got.

0:35:240:35:28

You've got an even bigger little

area there.

0:35:280:35:31

So, I wonder if you could block that

up - and this is a better idea -

0:35:310:35:34

block that up, and then put a door

in here.

0:35:340:35:37

So you then get that upstairs

bathroom.

0:35:370:35:39

You lose a little bit of space

there,

0:35:390:35:41

but you still keep that room there

pretty much as is.

0:35:410:35:43

That's still a decent-sized double.

0:35:430:35:46

And you'd have that upstairs

bathroom.

0:35:460:35:48

It wouldn't be huge, but a big

bonus.

0:35:480:35:50

Again, I'd only think about this if

I was going to live in it.

0:35:520:35:55

Putting in plumbing here could be

expensive.

0:35:550:35:58

It all depends on the drains and

things like that,

0:35:580:36:00

which takes me to outside.

0:36:000:36:02

Not the prettiest of courtyards.

0:36:030:36:05

But with a little imagination,

it could be OK.

0:36:050:36:08

And if you got this for somewhere

around that guide price

0:36:080:36:12

of 30 to 35,000, could it make a

good investment?

0:36:120:36:14

Let's ask a local estate agent

what he makes of it.

0:36:150:36:18

My first impressions of the house,

it's got a lot of potential,

0:36:220:36:26

which is great.

Make a good investment.

0:36:260:36:28

I think it needs a full

refurbishment.

0:36:280:36:30

In terms of work that needs doing,

a new kitchen, new bathroom,

0:36:300:36:34

decoration and carpets

throughout, as well.

0:36:340:36:36

You could put a toilet upstairs.

0:36:360:36:38

I'd probably just leave it the

bathroom downstairs,

0:36:380:36:41

which is absolutely fine for the

size of the property.

0:36:410:36:44

So, the agent doesn't think

structural work is necessary,

0:36:440:36:47

And thinks a budget of

10 to 15 grand

0:36:470:36:50

would get this property up to

scratch.

0:36:500:36:53

So, with that in mind, what kind of

rental could be achieved here?

0:36:530:36:56

On completion, I'd estimate the

property would achieve £450 per

calendar month.

0:36:570:37:01

And what about resale?

0:37:010:37:04

Upon completion, you'd be looking at

achieving a price of £70,000.

0:37:040:37:08

Well, it's a lot of house for the

money, and I certainly think with

0:37:080:37:11

some simple modifications inside,

you can make a big difference.

0:37:110:37:14

How did it go when it went to the

auction? Let's find out.

0:37:140:37:17

It's a two-bed, mid-terraced house.

0:37:200:37:22

You've got double glazing and

central heating.

0:37:220:37:24

The guide is 30 to 35.

0:37:240:37:26

Ladies and gentlemen, start me off

at 30. Lower end of the guide,

0:37:260:37:29

if I may, 30. Straight in at 30.

0:37:290:37:30

32? Who else is here for this

one at 32?

0:37:300:37:33

32. 34?

0:37:330:37:35

34, thank you. 36.

0:37:350:37:37

36 is your bid.

0:37:370:37:38

Yeah? 38?

0:37:380:37:39

Anyone else?

0:37:410:37:43

38, I have.

0:37:430:37:45

Is it you, sir? 40? Thank you.

0:37:450:37:47

41. 41 is that gentleman.

0:37:470:37:49

42.

0:37:490:37:50

40...that's a yes? Are you two

together?

0:37:500:37:52

42. 43.

0:37:520:37:54

44.

0:37:540:37:55

45.

0:37:560:37:58

46.

0:37:580:38:00

47.

0:38:000:38:02

48.

0:38:020:38:03

49.

0:38:030:38:05

Thank you. 50.

0:38:050:38:06

49 and a half is a bid.

0:38:070:38:09

50, can I say?

0:38:090:38:11

Thank you. Another half.

0:38:110:38:12

51.

0:38:120:38:14

Thank you. Another half.

0:38:140:38:16

52.

0:38:160:38:17

Thank you very much. 52 and a half.

0:38:190:38:21

Understood.

0:38:210:38:22

£52,000 for the first time.

0:38:220:38:25

£52,000 for the second time.

0:38:250:38:26

Are we all done? At £52,000...

0:38:260:38:30

Ooh, 52 and a half, I see. I see it.

0:38:300:38:33

53, guys?

0:38:330:38:34

You're both saying no.

0:38:360:38:37

It's with you at 52,500,

0:38:370:38:39

if I don't get the extra 500.

0:38:390:38:42

For the very first time,

52 and half.

0:38:420:38:44

Second time at £52,500.

0:38:440:38:46

I'm looking for a 53.

0:38:460:38:48

Are we all done? Third and final

time at £52,500...

0:38:480:38:52

You're going to lose it. Sold.

0:38:520:38:55

Well done.

0:38:550:38:56

On this occasion our cameras missed

successful bidder Hardeep.

0:38:560:39:00

Local shop owner and sometime

property developer Hardeep

0:39:000:39:04

had to battle

to get this property for £52,500.

0:39:040:39:08

So, I'm intrigued to find out what

his plans are.

0:39:080:39:11

Hardeep, lovely to meet you.

Nice to meet you.

Congratulations!

0:39:180:39:22

Tell me why you wanted to buy this

place.

0:39:220:39:24

It's local. I've got a shop up the

road,

0:39:240:39:26

so it's kind of close proximity

to that.

0:39:260:39:30

And, you know, I can manage the

work myself as well.

0:39:300:39:32

Right. And quite a good price.

0:39:320:39:34

Yeah, it was 52,500, so, I think my

budget was 50,

0:39:340:39:37

but it did kind of creep over that.

0:39:370:39:39

Right, why were you so keen to buy

it?

0:39:390:39:41

Probably the location. I've got a

few other buy-to-lets locally

0:39:410:39:44

as well, and we've got a good team

locally as well, so, you know,

0:39:440:39:47

it's just one to add to the

portfolio.

Brilliant.

0:39:470:39:50

Apart from this location, then, what

did you like about the house?

0:39:500:39:53

It's just a general tidy up, like, a

new kitchen, new bathroom, bit of a,

0:39:530:39:57

you know, new carpets, lick of

paint, get it tenanted again.

0:39:570:40:01

So, the idea is you're buying to

rent it out?

That's it.

0:40:010:40:04

Around the sort of Merseyside area,

the Wirral or whatever,

0:40:040:40:07

it does seem that the buy-to-let

model is still working,

0:40:070:40:10

you're getting some good returns?

Yeah, I think, on this one,

0:40:100:40:13

we could achieve up to between,

like, 475 to 485,

0:40:130:40:16

so I'm going for the... That's the

kind of market for a two-bedder.

0:40:160:40:19

Right.

I've got similar ones in the

area,

0:40:190:40:22

that does achieve between

450 to 500.

0:40:220:40:24

Right.

So, you do get good value for

money, you know,

0:40:240:40:27

in this kind of area.

0:40:270:40:29

Hardeep certainly seems to know his

stuff,

0:40:290:40:31

and has a team of people who are

going to get this place ship-shape.

0:40:310:40:34

But getting a decent yield always

comes down to how much you spend.

0:40:340:40:38

So, do you have a budget for the

work?

Um, yeah,

0:40:410:40:44

I was thinking about 7,500 to

10,000...

OK.

0:40:440:40:46

..so, you know, I just want to...

0:40:460:40:49

just play it by ear, really.

0:40:490:40:51

Now, I did have some ideas about

taking down lots of walls,

0:40:510:40:53

try and make it even more open-plan.

0:40:530:40:55

Are you going to do anything

dramatic like that?

0:40:550:40:57

Not on this one, no, to be honest.

0:40:570:40:59

It'll just be a simple renovation,

tenanted, move on,

0:40:590:41:02

next job.

I had another idea...

Yeah?

0:41:020:41:04

Yes, a bathroom upstairs, how

about that?

0:41:040:41:06

I was thinking about that earlier,

0:41:060:41:07

but it's only got two bedrooms

upstairs,

0:41:070:41:09

so if you put the bathroom upstairs,

it'll just be one-bedroom, so...

0:41:090:41:12

In the little square thing? You

could possibly open that up,

0:41:120:41:15

put the thing in from the...

No?

No, I think I'll just keep it

0:41:150:41:18

how it is and just kind of rent it.

So much for my ideas, then!

0:41:180:41:21

Yeah.

Now, when you let, do you use

an agent, or do you do it yourself?

0:41:220:41:26

Well, to be honest, I kind of do it

myself as well.

0:41:260:41:29

We've got to shop up the road,

so what we do is we just advertise

0:41:290:41:32

in the shop, and you just, you know,

0:41:320:41:34

take the viewings and just take it

from there.

0:41:340:41:36

We've actually got a tenant lined

up.

Oh, have you?

Yeah,

0:41:360:41:39

she's looking at around 495 but,

obviously,

0:41:390:41:41

we've got to do the work.

Probably get her in,

0:41:410:41:44

tell us what kind of colour scheme

she's after.

0:41:440:41:46

That's ideal, isn't it?

Yeah.

Right, what's the timescale?

0:41:460:41:49

Um, I'm looking probably four to six

weeks.

0:41:490:41:52

OK.

To be honest, it depends on the

contractors, you know,

0:41:520:41:56

their availability and stuff.

0:41:560:41:57

So it's just kind of getting them

in, get it priced up,

0:41:570:42:00

get the work done.

Great,

0:42:000:42:01

and how did you get into the world

of property?

0:42:010:42:03

To be honest, my parents were into

it. My dad was really keen.

0:42:030:42:06

He used to, you know, buy a house,

renovate it,

0:42:060:42:09

rent it, and I think we grew up in

that world,

0:42:090:42:12

and I think we just carried on,

0:42:120:42:14

you know, but he's not around no

more, so...

Aww.

0:42:140:42:16

..we just carry it on now.

0:42:160:42:17

Right, so, any other family members

going to help you?

0:42:170:42:19

Yeah, my brother as well, so,

0:42:190:42:21

we'll just kind of just see what

needs doing, get it done, move on.

0:42:210:42:24

Cos last year, I done

a self-build...

Oh, did you?

0:42:240:42:27

So, we bought a plot of land, and we

actually fell in love with it,

0:42:270:42:30

so, we got planning on there for a

five-bedder, built it,

0:42:300:42:33

the plan was to sell, but we fell in

love with it during the build,

0:42:330:42:36

so we ended up just keeping it, and

we moved in and, you know,

0:42:360:42:39

I should have sold it, but, you

know, hey-ho.

0:42:390:42:41

Well, you love it, so that's great.

0:42:410:42:42

That's it, yeah. So, also, where the

shop is,

0:42:420:42:45

we've got some land behind there, so

just recently, on Friday,

0:42:450:42:49

we just got planning permission for

four flats.

0:42:490:42:52

Oh, wow!

So, that's the next thing.

0:42:520:42:54

At the minute, we're just waiting

0:42:540:42:56

for building regulations to

come through.

OK.

0:42:560:42:58

Blimey, but you've done self-build,

you've done flats,

0:42:580:43:01

this is a piece of cake, really!

Well, you know, never say never,

0:43:010:43:03

Unless you've started taking

everything out of there.

0:43:030:43:06

You always expect the unexpected,

really.

0:43:060:43:07

Well, listen, congratulations.

Thank

you very much.

Good luck with it.

0:43:070:43:10

Thank you very much.

Look forward to

seeing how you get on.

0:43:100:43:13

Yeah, no problem, cheers, thank you.

0:43:130:43:15

Well, my ideas went down well,

didn't they?

0:43:150:43:17

Not!

0:43:170:43:18

Anyway, compared to doing a

self-build, or building four flats,

0:43:180:43:23

this place really should be a piece

of cake for Hardeep.

0:43:230:43:26

You can find out how he gets on

later in the show.

0:43:260:43:30

I'll just go and...lick my wounds.

0:43:300:43:33

I thought it was a good idea!

0:43:330:43:35

So, earlier, we found out how one of

our buyers got on with their auction

property.

0:43:410:43:44

Yeah, what about the other two?

0:43:440:43:46

Will their blood, sweat and tears

have paid off?

0:43:460:43:48

Wait no longer. Let's find out.

0:43:480:43:49

It was two miles out of the historic

city of Canterbury I saw this

0:43:520:43:56

impressive former farm worker's

cottage,

0:43:560:43:58

that went to auction with a guide

price of £170,000 plus.

0:43:580:44:03

Larger than I expected,

the downstairs living space

0:44:030:44:06

was fairly generous and it had lots

of nice original features,

0:44:060:44:10

although the downstairs bathroom and

side entrance were not the best

0:44:100:44:14

configuration for modern family

living.

0:44:140:44:17

I thought best to move that bathroom

upstairs and shave some space

0:44:170:44:22

from one of the two bedrooms,

0:44:220:44:23

since they weren't lacking in floor

space -

0:44:230:44:26

although headspace, that was a

different matter!

0:44:260:44:29

The ceilings are really low

and, you know,

0:44:300:44:33

I'm five foot three and a half, and

when I'm walking into the light...

0:44:330:44:36

That's low!

0:44:360:44:38

# You got to use your head...#

0:44:380:44:41

Up a further flight of stairs was

the third and final bedroom.

0:44:410:44:44

But the space next door could easily

be converted to a fourth,

0:44:440:44:48

making this a perfect family

countryside home.

0:44:480:44:52

Except...

0:44:520:44:54

I happen to know there are

plans afoot to change this landscape

0:44:540:44:57

with up to 4,000 new homes.

0:44:570:45:00

But Derek had done his homework and

wasn't put off,

0:45:000:45:04

and bought the cottage for 213

grand,

0:45:040:45:07

with his not-so-silent partner,

his brother, Bob.

0:45:070:45:11

He's quite well known in

Canterbury, so...

0:45:110:45:14

Why?

He's a bit of a lad.

0:45:140:45:16

Yeah?

He's...he's gobby!

0:45:160:45:18

Yeah?!

He's gobby, he's just a bit

camera-shy!

0:45:180:45:21

Derek and Bob had a budget of

£20,000 to £25,000,

0:45:240:45:28

and a timescale of five months,

0:45:280:45:30

but would all go to plan?

0:45:300:45:32

After all, this was a Grade II

listed building.

0:45:320:45:35

Could they get permission to move

the bathroom upstairs,

0:45:350:45:39

and would they take advantage of the

great rental opportunity?

0:45:390:45:43

We are back four months later, and

there's still no sign of gobby Bob!

0:45:430:45:47

# Little less conversation

A little more action, please

0:45:470:45:52

# All this aggravation

Ain't satisfactioning me

0:45:520:45:55

# Little more bite

A little less bark

0:45:550:45:58

# A little less fight

And a little more spark

0:45:580:46:00

# Close your mouth and open

up your heart

0:46:000:46:01

# And baby satisfy me

0:46:010:46:03

# Satisfy me... #

0:46:030:46:07

Oh, dear, it looks like Derek and

Bob have been all chat and not much

action!

0:46:070:46:12

Work has definitely started,

0:46:120:46:14

but it's not as far on as I would

have expected.

0:46:140:46:17

So, what's happened?

0:46:180:46:20

We found a leak in the kitchen floor

0:46:200:46:22

that we didn't know was there.

0:46:220:46:25

We were going to take the screed up

so we could lay our floor in there,

0:46:250:46:30

and realised we'd got

0:46:300:46:33

a fairly soggy floor underneath,

0:46:330:46:35

so, we've had to leave it to dry out

naturally.

0:46:350:46:38

But, yes, we've repaired the leak

and, hopefully,

0:46:380:46:42

which I think you can see,

it's drying out nicely now.

0:46:420:46:45

Upstairs, everything is stripped

back to brick,

0:46:540:46:57

and the brothers are going to split

the rear bedroom to make way for

0:46:570:47:00

a family bathroom, which is a great

idea.

0:47:000:47:03

But did that Grade II listing cause

them any problems?

0:47:030:47:07

No, because we put the plans in, we

had the plans all drawn up.

0:47:070:47:12

We are replacing like-for-like,

0:47:120:47:16

which they seemed to like, so,

0:47:160:47:19

you can't really go far wrong.

0:47:190:47:21

But I could see you could get into

trouble

0:47:210:47:24

if you just ripped out things

and, you know, carried on.

0:47:240:47:28

But, yeah, we're doing it by the

book.

0:47:280:47:32

Hopefully!

0:47:320:47:33

Up in the loft, not much has

changed,

0:47:370:47:39

but Derek and Bob have got

permission to separate off the

second room

0:47:390:47:43

to make it a fourth bedroom,

0:47:430:47:45

and are planning to add a driveway

and garage into the garden.

0:47:450:47:50

So far, they've barely touched the

20 to 25 grand budget,

0:47:500:47:54

but how long does Derek think that

this will take?

0:47:540:47:57

It is going to easily take another

five months,

0:47:570:48:00

just to do what we were going to do

in the first place,

0:48:000:48:03

but what with the hold-ups,

0:48:030:48:05

my brother's been on holiday, I've

been on holiday,

0:48:050:48:09

we're just not in a rush,

0:48:090:48:10

we're just doing this as a top-up

0:48:100:48:12

for the pension, really, I suppose.

0:48:120:48:15

Just how much could be going into

that pension pot?

0:48:170:48:20

Let's hear what two local estate

agents thought of the plans for

0:48:200:48:24

the house, and what it could be

worth when complete.

0:48:240:48:27

A fantastic opportunity.

0:48:270:48:28

I think there's a lot of scope,

a lot of improvement needed,

0:48:280:48:32

but it's got massive potential.

0:48:320:48:35

It's a great location.

0:48:350:48:38

I'm rather jealous, actually!

0:48:380:48:39

I think the layout will be good when

the refurbishment is completed.

0:48:390:48:42

I think you've really got to get a

bathroom upstairs.

0:48:420:48:45

I think, being a four-bed,

0:48:450:48:46

could do with a little more ground

floor space,

0:48:460:48:49

whether that was a conservatory off

at the rear,

0:48:490:48:52

because if the garage that's going

at the side,

0:48:520:48:54

you'd be a bit stifled there.

But I would certainly look at

0:48:540:48:57

perhaps, even if it's just a

conservatory,

0:48:570:48:59

but a nice timber-framed

conservatory, in keeping,

0:48:590:49:02

that would give you a bit more space

as well.

0:49:020:49:04

That would, of course, mean more

time and money would need

0:49:040:49:07

to be invested,

although it's a nice idea.

0:49:070:49:10

At present, Derek and Bob have

stayed on track with their £238,000

0:49:100:49:15

investment, and what's even better

is they have a potential purchaser.

0:49:150:49:20

So, what kind of figure should this

achieve on the sales market?

0:49:200:49:23

Once the work is completed,

0:49:230:49:25

and the property is then

a four-bedroom house,

0:49:250:49:28

I would suggest a guide price

0:49:280:49:30

in the region of

approximately £325,000.

0:49:300:49:33

The second agent thought the

brothers could add even more value

0:49:330:49:36

with an extension and en suite in

the loft, but how much?

0:49:360:49:40

If it was complete now in the market

today,

0:49:400:49:43

I would recommend putting it on the

market

0:49:430:49:45

at between 400,000 and 600,000,

0:49:450:49:47

but you'd end up probably

somewhere in the middle.

0:49:470:49:49

Continuing with the plans they have

now could see them with a potential

0:49:490:49:53

profit, minus taxes and fees, of

87 grand,

0:49:530:49:57

and while the other estate agent's

ideas are good, even after, say,

0:49:570:50:01

allowing for a generous £100,000

for the additional work,

0:50:010:50:04

they could double the profit.

0:50:040:50:07

Would it be worth more time and

hassle?

0:50:070:50:09

Is Derek tempted?

0:50:090:50:10

Yeah, yeah, it's really made me

speechless!

0:50:100:50:13

Watch this space, folks!

0:50:160:50:18

But how does Derek feel about the

project so far?

0:50:180:50:22

Glad we done it. Um...

0:50:220:50:24

Still don't know whether I'd take on

a Grade II again,

0:50:240:50:28

but knowing what I know, um, it's

always a possibility,

0:50:280:50:31

but we're not looking do it again.

0:50:310:50:34

It's just to top up the pension.

0:50:340:50:36

Um, yeah, very pleased.

0:50:360:50:38

Back to Merseyside now, and the town

of Wallasey.

0:50:450:50:48

It was here, at the mouth of the

famous River Mersey,

0:50:480:50:51

that we looked around this two-bed,

0:50:510:50:53

mid-terrace property,

0:50:530:50:56

that had a guide price of 30 to

£35,000.

0:50:560:51:00

A deceptively spacious property that

needed a lick of paint,

0:51:000:51:04

and possibly a little reimagining.

0:51:040:51:07

Block that up, and then put a door

in here,

0:51:070:51:11

so you then get that upstairs

bathroom.

0:51:110:51:13

You lose a little bit of space

there,

0:51:130:51:14

but you still keep that room there

pretty much as is.

0:51:140:51:17

That's still a decent sized double,

0:51:170:51:19

and you'd have that upstairs

bathroom.

0:51:190:51:21

It won't be huge, but a big bonus.

0:51:210:51:23

Yes, there were options with this

property that looked like the ideal

0:51:250:51:29

rental investment to me, and I

wasn't on my own.

0:51:290:51:33

Bought on auction day for £52,500,

0:51:330:51:37

by local shopkeeper and sometime

property developer Hardeep.

0:51:370:51:41

He could see the potential of this

property,

0:51:410:51:43

although not the potential of my

ideas of knocking down walls and

0:51:430:51:46

installing that bathroom upstairs.

0:51:460:51:49

Yeah, so, a bathroom upstairs, how

about that?

0:51:490:51:51

I was thinking about that earlier

but, actually,

0:51:510:51:53

it's only got two bedrooms upstairs,

so if you put the bathroom upstairs,

0:51:530:51:56

it'll just be one bedroom.

0:51:560:51:58

In the little square thing? You

could possibly open that up and put

0:51:580:52:01

anything in from the... No?

No,

0:52:010:52:02

I think I'll just keep it how it is

and just kind of rent it.

0:52:020:52:05

So much for my ideas, then!

Yeah.

0:52:050:52:08

# Baby, I know better... #

0:52:080:52:11

Hardeep knew the local property

market really well,

0:52:130:52:16

having renovated and rented several

properties in the area in the past.

0:52:160:52:20

He even already had a tenant waiting

to move in.

0:52:200:52:24

He had a budget of £7,500 to

£10,000,

0:52:240:52:27

and a timescale of four to six weeks

0:52:270:52:29

to get the property ready and move

his tenants in.

0:52:290:52:32

Well, just over four weeks later,

0:52:350:52:37

and the front is looking far

brighter,

0:52:370:52:40

with a new front door, plus fencing

and gate.

0:52:400:52:42

Will the improvements continue

inside?

0:52:420:52:45

With the work complete and the

tenant already moved in,

0:52:550:52:58

this place has been transformed.

0:52:580:53:01

A lovely neutral paint job in the

living room,

0:53:010:53:03

plus a brand-new fireplace,

0:53:030:53:05

has added character and warmth.

0:53:050:53:07

There's a fantastic new kitchen at

the back.

0:53:080:53:11

They've also put in a new,

modern and attractive suite

0:53:170:53:20

in the ample family bathroom.

0:53:200:53:22

Upstairs, and the two rooms have

been neutrally decorated to

0:53:350:53:39

a good standard, creating a perfect

renter's property.

0:53:390:53:42

To get all this done in a little

over four weeks,

0:53:450:53:48

plus move a tenant in,

is some achievement.

0:53:480:53:51

Was it all plain sailing?

0:53:510:53:53

The biggest challenge, probably...

0:53:530:53:58

the timescale. I did say four weeks,

and I thought I was going to drag

0:53:580:54:01

on, but because I had a tenant on

board,

0:54:010:54:03

that's why I did have to push it.

0:54:030:54:05

When it was looking like two weeks

and the tenant was saying,

0:54:050:54:08

"Is it going to be ready?" When half

the kitchen was still being put in

0:54:080:54:11

and the bathroom was still...

0:54:110:54:13

We did get another pair of hands on

board, then, as well,

0:54:130:54:15

just to make sure it was done by the

deadline.

0:54:150:54:17

So, it sounds like a simple

renovation plan and sticking with

0:54:190:54:22

the people he knows to do the work

has resulted in

0:54:220:54:25

a relatively stress-free project for

Hardeep.

0:54:250:54:27

Lesson to be learned for all of us,

there.

0:54:290:54:31

Having a tenant waiting to move in

has also had its advantages.

0:54:320:54:37

During the design process for the

kitchen and the bathroom,

0:54:370:54:39

I did liaise with the tenant, like,

what kind of styles do you like

0:54:390:54:42

and what kind of colour of flooring

you like, and the carpets, curtains,

0:54:420:54:46

even the actual blinds as well.

0:54:460:54:47

So, we actually incorporated most of

her designs

0:54:470:54:50

and the colour scheme that she's

looking for.

0:54:500:54:52

Because at the end of the day,

the tenant's happy, I'm happy.

0:54:520:54:55

It's a long-term let, it's not just

a short-term, six months to a year,

0:54:550:54:58

this is probably about five years,

so, you know, I'm happy.

0:54:580:55:02

Sounds like everyone's happy, then.

0:55:020:55:04

But with the work being done well

within the timescale,

0:55:040:55:07

did Hardeep stick to his budget?

0:55:070:55:09

I just come under the seven grand

budget,

0:55:110:55:13

so I'm quite pleased with that.

0:55:130:55:15

We made a few savings and, you know,

we did overspend on certain parts,

0:55:150:55:19

but, overall, the project went well.

0:55:190:55:21

So, Hardeep's invested a total of

£59,500,

0:55:230:55:27

and his tenant is paying £475 per

calendar month,

0:55:270:55:30

which is a healthy yield of 9.5%.

0:55:300:55:34

But will two local estate agents

think he could have got more,

0:55:340:55:37

or indeed done more for the

property?

0:55:370:55:40

Let's start with the agent who saw

it originally.

0:55:400:55:42

So, it's my second time in the

property.

0:55:450:55:47

I think he's done a great job to it.

0:55:470:55:49

Very modern, neutral colours, so,

yeah, very impressed.

0:55:490:55:51

My first impressions of the property

was that it's presented really

0:55:510:55:55

nicely, it looks like the guy's

done a really good job

0:55:550:55:57

in renovating it.

Looking around, it seems like

0:55:570:56:00

it's all been done to a very good

standard.

0:56:000:56:02

They're impressed and it sounds like

Hardeep made exactly the right call

0:56:020:56:06

when it came to an upstairs

bathroom.

0:56:060:56:07

So, in terms of layout, I don't

think I would have changed anything.

0:56:090:56:12

The bathroom is downstairs, but

that's what's expected,

0:56:120:56:14

in these types of properties.

I

think the layout works really well.

0:56:140:56:17

I like the fact that they've kept

the bathroom downstairs.

0:56:170:56:20

Some of the houses round here,

they try and squeeze the bathroom

0:56:200:56:22

upstairs and it doesn't quite work

with the room sizes.

0:56:220:56:25

So, as you come in, you're coming

through the hallway,

0:56:250:56:27

walking through the lounge, into the

kitchen, it's a nice layout,

0:56:270:56:30

it's got a really nice feel to it.

0:56:300:56:32

Hardeep knows what works in these

houses, for sure.

0:56:320:56:34

But what about the numbers?

He's not going to sell,

0:56:340:56:37

but could he make any profit on his

£59,500 investment?

0:56:370:56:42

And is he on the ball with that

rental value

0:56:420:56:45

of £475 per calendar month?

0:56:450:56:47

In the rental market, this property

would achieve £450 per calendar

0:56:490:56:52

month, and in the sales market, it

would achieve £70,000.

0:56:520:56:56

In the rental market, I would expect

the property to achieve £450 per

0:56:560:57:00

calendar month, and in the sales

market,

0:57:000:57:02

I would expect the property to

achieve £70,000.

0:57:020:57:05

Those valuations of 70,000

0:57:050:57:08

would mean a pre-tax profit of

£10,500.

0:57:080:57:11

But Hardeep isn't interested in

selling just now,

0:57:110:57:14

and is actually getting more than

what they predicted for rental.

0:57:140:57:18

At the end of the day, if we get a

good tenant in there and we look

0:57:180:57:21

after them, they are prepared to pay

a bit extra.

0:57:210:57:24

Well, with a long-term tenant in

place

0:57:240:57:26

and a healthy 9.5% yield coming in,

0:57:260:57:29

Hardeep can count this as a success,

0:57:290:57:31

and I think it's only wise we ask

his advice for any aspiring property

developers.

0:57:310:57:36

The location's got to be right,

0:57:360:57:38

and the price has got to be right as

well.

0:57:380:57:40

After all the renovation as well,

you've got to make sure of some

0:57:400:57:43

appreciation for the capital as

well,

0:57:430:57:45

otherwise it's not worth it, really.

0:57:450:57:47

So, I'd make sure, do your

research, that's the main thing.

0:57:470:57:50

Well, even for the most experienced

property developer,

0:57:540:57:56

every project is a chance to learn

something new.

0:57:560:58:00

Hopefully, today's stories have

given you a real insight,

0:58:000:58:02

and maybe you've learned something,

too.

0:58:020:58:04

Yeah, so join us again soon here on

Homes Under The Hammer.

0:58:040:58:07

See you soon.

Bye-bye.

Goodbye.

0:58:070:58:09

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