0:00:03 > 0:00:05Hello and welcome to the show. Now, unfortunately
0:00:05 > 0:00:07there's no bulletproof formula for knowing when and where
0:00:07 > 0:00:09is best to invest in property.
0:00:09 > 0:00:10Yeah, that is true, Martel.
0:00:10 > 0:00:13But it doesn't mean that taking the plunge needs to be a scary
0:00:13 > 0:00:15experience, because there's loads of good value out there.
0:00:15 > 0:00:18Yeah, there is. And one place you might be able to find it
0:00:18 > 0:00:19is your local property auction.
0:00:46 > 0:00:49Well, at auction a lot of properties are bought and sold
0:00:49 > 0:00:53and it is a fairly intense and frantic process.
0:00:53 > 0:00:56Yes, but amongst all the hustle and bustle, the bidders have got to be
0:00:56 > 0:00:58eagle-eyed to find out which property suits them.
0:00:58 > 0:01:02So, what caught the eye of our bidders on today's show?
0:01:02 > 0:01:03Let's find out.
0:01:05 > 0:01:08In Birmingham, it's a case of rolling up your sleeves
0:01:08 > 0:01:10and getting stuck in.
0:01:10 > 0:01:14I do think the hard work could pay off on this project.
0:01:14 > 0:01:18In Wales, I'm taking a more leisurely approach to the work.
0:01:18 > 0:01:21I can imagine Sue Ellen sitting here and saying something like,
0:01:21 > 0:01:23"I'll have a Scotch on the rocks."
0:01:24 > 0:01:28No rest in Liverpool - there's a property bargain to be had.
0:01:28 > 0:01:32£35,000 was the guide price for a mid-terrace.
0:01:32 > 0:01:34Come on, that's got to be worth a look.
0:01:36 > 0:01:38All these properties have been sold at auction,
0:01:38 > 0:01:41and we'll find out who bought them and what they paid
0:01:41 > 0:01:42when they went under the hammer.
0:01:42 > 0:01:44Sold!
0:01:47 > 0:01:49BLOCKBUSTER THEME PLAYS Which city am I closest to?
0:01:49 > 0:01:51It's not New York.
0:01:52 > 0:01:54It's not Madrid either,
0:01:54 > 0:01:57but you'll find this water sculpture in the Bullring.
0:01:59 > 0:02:02It's Birmingham, of course, which is also the home to
0:02:02 > 0:02:06an old tea-time favourite quiz show, Blockbusters.
0:02:06 > 0:02:10I'm four miles north east of the city centre in Erdington,
0:02:10 > 0:02:14which is very close to a section of motorway which is named after
0:02:14 > 0:02:15an Italian pasta type
0:02:15 > 0:02:18and the very green space of Brookvale Park.
0:02:18 > 0:02:20I'll have a B, please, Bob.
0:02:22 > 0:02:24I'm two minutes' walk away from Brookvale Park,
0:02:24 > 0:02:28and on this street is the end terrace, three-bed house
0:02:28 > 0:02:30I'm here to see.
0:02:30 > 0:02:34It had a guide price of £24,000 to £29,000.
0:02:34 > 0:02:38And I've got to say, I've had better first impressions.
0:02:39 > 0:02:42I'm taking a guess this is going to be a doer-upper.
0:02:43 > 0:02:46Is it going to be any better inside? Let's have a look.
0:02:46 > 0:02:50No gold run from this place on first impressions.
0:02:54 > 0:02:58OK. Somebody has already started work in here.
0:02:58 > 0:03:01We are back to the bare brick,
0:03:01 > 0:03:03there's no ceiling,
0:03:03 > 0:03:06so this is a "start from the very beginning" project.
0:03:06 > 0:03:09This is the first reception room,
0:03:09 > 0:03:12and as I come across the hallway here,
0:03:12 > 0:03:16I can see there's some stairs going down to a cellar.
0:03:16 > 0:03:18And the second reception room,
0:03:18 > 0:03:22this is the same sort of condition as the first reception room.
0:03:22 > 0:03:25The kitchen sink's even in here as well.
0:03:25 > 0:03:29I like this room. Good-sized room, nice high ceilings, lots of space.
0:03:29 > 0:03:33And then into the kitchen, a couple of stairs down into the kitchen.
0:03:34 > 0:03:38OK, there's no kitchen in the kitchen. The sink's in there.
0:03:38 > 0:03:41And it does feel a little bit tight, a little bit small,
0:03:41 > 0:03:44compared to the size of the other two rooms I've already seen.
0:03:44 > 0:03:47There's a lot of work to be done here.
0:03:47 > 0:03:50This is not a project for the faint-hearted.
0:03:50 > 0:03:54Having said that, it's obvious that the work has already started here.
0:03:54 > 0:03:58That explains why everything, including the kitchen sink,
0:03:58 > 0:03:59has been hauled out.
0:04:00 > 0:04:05I sincerely hope this isn't a first timer on a first project,
0:04:05 > 0:04:08because this is certainly not a job for a novice.
0:04:08 > 0:04:12There are real challenges here, and it could all end in tears.
0:04:12 > 0:04:18# All is lost There's no place for beginning
0:04:18 > 0:04:22# All that's left is an unhappy ending
0:04:22 > 0:04:27# Now what becomes of the broken hearted? #
0:04:28 > 0:04:33If the inside's breaking your heart, wait till you see the garden.
0:04:33 > 0:04:36It's just a little bit bigger as it's an end terrace.
0:04:36 > 0:04:39That's nothing to do with the back garden, by the way.
0:04:39 > 0:04:45The perimeter comes along here and just goes round the side there.
0:04:45 > 0:04:48Over here, you've got all this earth that has come from the cellar.
0:04:48 > 0:04:52It's all been dug out and put into the back garden.
0:04:52 > 0:04:54The interesting thing for me is this.
0:04:54 > 0:05:00Now, from what I can see, that roof looks pretty new to me.
0:05:00 > 0:05:02You could knock this wall down,
0:05:02 > 0:05:04cos on the other side of that wall is the kitchen.
0:05:04 > 0:05:06You could knock it into a utility room,
0:05:06 > 0:05:09you could knock it into a downstairs toilet.
0:05:09 > 0:05:13But it's space that you could use on the inside of the house
0:05:13 > 0:05:15instead of it being useless.
0:05:15 > 0:05:18What's that you say? 'Course I didn't forget the...
0:05:18 > 0:05:19Upstairs!
0:05:19 > 0:05:22We have got three bedrooms.
0:05:22 > 0:05:26The first bedroom at the front of the property is a really good size.
0:05:26 > 0:05:28It's got a nice high ceiling,
0:05:28 > 0:05:31it's got a huge window, letting loads of light in.
0:05:31 > 0:05:36But like all the windows downstairs, they've all got to be replaced.
0:05:36 > 0:05:37What else have we got down here?
0:05:37 > 0:05:41Along the corridor, you've got a bedroom here.
0:05:41 > 0:05:43Further down the hallway...
0:05:43 > 0:05:46Now, the condition of upstairs is pretty much
0:05:46 > 0:05:48the same as it is downstairs -
0:05:48 > 0:05:49everything's been stripped back.
0:05:49 > 0:05:52You've got to start again up here as well.
0:05:52 > 0:05:55This is a family bathroom which isn't in great shape at all.
0:05:55 > 0:05:57It would all have to be replaced.
0:05:57 > 0:06:00But I'm glad it's upstairs on the first floor.
0:06:00 > 0:06:04In here, this is the third bedroom.
0:06:04 > 0:06:07Now, I'm taking a guess that this...
0:06:08 > 0:06:09..has been put in at a later date,
0:06:09 > 0:06:12and this would have been one big bedroom.
0:06:12 > 0:06:15So the house would've been a two-bedroom back in the day.
0:06:15 > 0:06:17Now, I'm not normally a fan of splitting up bedrooms
0:06:17 > 0:06:21to make single rooms, but I think on this occasion,
0:06:21 > 0:06:25this wall here actually works to make it a three-bed house.
0:06:25 > 0:06:27If it's not for you, you could take this down
0:06:27 > 0:06:30and have it as one big, luxurious bedroom.
0:06:30 > 0:06:35But I do think the hard work could pay off on this project.
0:06:35 > 0:06:37# Hard work! #
0:06:37 > 0:06:39We invited an estate agent along
0:06:39 > 0:06:42to get the benefit of her knowledge of the local area
0:06:42 > 0:06:46and give us some valuations on the property after all the...
0:06:46 > 0:06:48# Hard work! # ..has been done.
0:06:49 > 0:06:52This area is very good with first-time buyers.
0:06:52 > 0:06:56They do get a lot more house for their money.
0:06:56 > 0:07:01This type of property would actually be worth £20,000 to £30,000 more
0:07:01 > 0:07:05in its current standard if it was located in Birmingham city centre.
0:07:06 > 0:07:08So what's the potential here for the house
0:07:08 > 0:07:11that was guided at £24,000 to £29,000?
0:07:11 > 0:07:14Once renovated, the property would be likely to sell for anywhere
0:07:14 > 0:07:19in between £130,000 and £145,000.
0:07:19 > 0:07:24For the rental market, you would be looking anywhere in between £625
0:07:24 > 0:07:27and £675 per calendar month.
0:07:27 > 0:07:29Clearly, this house needs a lot of work doing,
0:07:29 > 0:07:31and someone brave enough to take it on.
0:07:31 > 0:07:34Let's find out who did when it went under the hammer.
0:07:34 > 0:07:36So we go on to Lot 26...
0:07:36 > 0:07:40I've got £40,000 as a proxy bid, ladies and gentlemen.
0:07:40 > 0:07:42I am bidding on somebody's behalf.
0:07:42 > 0:07:43I've got that bid on the book.
0:07:43 > 0:07:45But obviously you're here to bid against that.
0:07:45 > 0:07:48So, do I hear £45,000 anywhere?
0:07:48 > 0:07:50I've got 40,000 on the book.
0:07:50 > 0:07:5145, I've got there.
0:07:51 > 0:07:5350, I have here.
0:07:53 > 0:07:5655, sir. 55, I'm bid.
0:07:56 > 0:07:57And 60 I have here.
0:07:57 > 0:08:0065, I'm bid. And the book is now out.
0:08:00 > 0:08:03With the guide price and the proxy bid dead in the water,
0:08:03 > 0:08:05the bidding continued.
0:08:05 > 0:08:08We rejoin at £88,500.
0:08:10 > 0:08:1288 and a half.
0:08:12 > 0:08:1489, I'm bid. 89, I'm bid.
0:08:14 > 0:08:1789 and a half, sir. 89 and a half. 90, now, sir. 90, I'm bid.
0:08:17 > 0:08:2290 and a half, sir. 90,500. 90,500.
0:08:22 > 0:08:2491, sir?
0:08:24 > 0:08:27As you wish. The bid is there at £90,500.
0:08:27 > 0:08:30For the first time... Second time...
0:08:30 > 0:08:32Third and the very last time.
0:08:32 > 0:08:33Are you coming back in, sir? No, he's not.
0:08:33 > 0:08:39It's your bid, sir. 90,500 to number 195. Thank you.
0:08:39 > 0:08:41Dilshad was the successful bidder,
0:08:41 > 0:08:45purchasing the property for 60 grand over the top end guide price.
0:08:47 > 0:08:51He's an electrical engineer and has a six-bed HMO to his name.
0:08:53 > 0:08:55I think I know where this one's going.
0:08:57 > 0:08:59- Dilshad.- Nice to meet you. - Nice to meet you, sir.- Me, too.
0:08:59 > 0:09:01- Thank you very much. - Congratulations.
0:09:01 > 0:09:05- Thank you very much.- I was going to ask you why you bought this house.
0:09:05 > 0:09:08BOTH LAUGH
0:09:08 > 0:09:11Well, I didn't buy... I actually buy in a better position.
0:09:11 > 0:09:14But we actually tried to renovate,
0:09:14 > 0:09:16that's where you can see the house like that.
0:09:16 > 0:09:17So you've started, haven't you?
0:09:17 > 0:09:20Yeah, we actually took the plaster off from the wall
0:09:20 > 0:09:23and the ceiling off, be ready for renovation.
0:09:23 > 0:09:25So you viewed the property?
0:09:25 > 0:09:28Yeah, I viewed before I went to auction.
0:09:28 > 0:09:31Good man, good man - one of the rules is ticked off.
0:09:31 > 0:09:34Did you read the legal pack as well?
0:09:34 > 0:09:36I was actually reading the legal pack,
0:09:36 > 0:09:39although I was actually...very quick
0:09:39 > 0:09:43and actually skipped some paragraphs in the legal pack.
0:09:43 > 0:09:46It is actually causing some problem for me as well, you know.
0:09:46 > 0:09:50After the auction, I find out there is some additional fee as well.
0:09:50 > 0:09:52So, um...
0:09:52 > 0:09:55But the problem with the figure is it's not written as a number,
0:09:55 > 0:09:58it's actually written as a word, so I was...
0:09:58 > 0:10:01- Oh, I see. Oh, OK. - I skipped the word, you know, so...
0:10:02 > 0:10:05Oh, dear. That word that Dilshad missed out
0:10:05 > 0:10:07has cost him eight grand in additional fees.
0:10:07 > 0:10:09The legal pack might be daunting.
0:10:09 > 0:10:12If you don't have time to read it through yourself properly,
0:10:12 > 0:10:13get a professional to do it for you -
0:10:13 > 0:10:17you don't want to be caught out with any unexpected expense.
0:10:17 > 0:10:20Anyway, Dilshad has moved on and is getting on with his plans
0:10:20 > 0:10:24to turn this into a HMO - a house of multiple occupancy.
0:10:24 > 0:10:26Well, the ground floor,
0:10:26 > 0:10:29the front room will actually be converted into a bedroom.
0:10:29 > 0:10:32This room, stay as it is, a dining.
0:10:32 > 0:10:34The kitchen will be new kitchen,
0:10:34 > 0:10:38- plus the small... - Extension at the back?- Yeah.
0:10:38 > 0:10:41I'll try to convert the cellar into a nice bedroom as well,
0:10:41 > 0:10:43so we've got plenty of space.
0:10:43 > 0:10:45We are going to take the ground off
0:10:45 > 0:10:47and convert it into the very nice bedroom as well.
0:10:47 > 0:10:50- Wow.- Big size, quite same size as this one.
0:10:50 > 0:10:53The planned layout for upstairs is to keep as is -
0:10:53 > 0:10:56three bedrooms, bathroom and a toilet.
0:10:56 > 0:10:58Obviously, as a fully qualified electrician,
0:10:58 > 0:11:00Dilshad's going to do all the electrics.
0:11:01 > 0:11:03He's certified to work to the latest
0:11:03 > 0:11:06Institute of Electrical Engineers regulations.
0:11:07 > 0:11:11A good job, because it's a criminal offence to get work done
0:11:11 > 0:11:14that doesn't meet current practice.
0:11:14 > 0:11:15But what about the rest of the work?
0:11:20 > 0:11:23I've got a team for the central heating,
0:11:23 > 0:11:25radiator system and boiler.
0:11:25 > 0:11:28I already got a quotation for that, but it's very friendly quotation.
0:11:28 > 0:11:29OK.
0:11:29 > 0:11:32And for plastering, I already got the plastering quotation as well.
0:11:32 > 0:11:34Again, this is very friendly as well.
0:11:34 > 0:11:37So any left is just the tiling.
0:11:37 > 0:11:40Tiling, a friend of mine will do the tiling for me as well.
0:11:40 > 0:11:42- You've got some good friends.- Yeah!
0:11:42 > 0:11:45And another friend is doing the garden for me as well, so we will...
0:11:45 > 0:11:49- It's just like a complete package ready for rock and roll.- Yeah.
0:11:49 > 0:11:53- Friendly pricing, friendly quotes, which is good.- Exactly, exactly.
0:11:53 > 0:11:54What have you got in the budget?
0:11:54 > 0:11:58Something like £20,000 for me is the budget for now.
0:11:58 > 0:11:59How long's it going to take?
0:11:59 > 0:12:03Well, I'm expecting to take something like about...
0:12:03 > 0:12:04two months, hopefully.
0:12:04 > 0:12:08That's what I'm expecting because the teams are ready now, so...
0:12:08 > 0:12:10So, Dilshad, are you going to continue to buy
0:12:10 > 0:12:11and add to your portfolio?
0:12:11 > 0:12:15Well, after completion of this project, we have another intent
0:12:15 > 0:12:20to purchase new property from another popular area in Birmingham.
0:12:20 > 0:12:22That's a secret one. We won't mention in here...
0:12:22 > 0:12:24OK, so you're not going to tell us, are you?
0:12:24 > 0:12:26Well, after the completion, you will find out!
0:12:26 > 0:12:28Dilshad, good luck. I wish you all the best.
0:12:28 > 0:12:30- Thank you very much.- Take care, sir. - Thank you.
0:12:30 > 0:12:33So Dilshad has started the clear out,
0:12:33 > 0:12:35but he's still got a big job to do,
0:12:35 > 0:12:40turning this place into a five-bed house of multiple occupancy.
0:12:40 > 0:12:43But don't forget, he's had those "friendly" quotations,
0:12:43 > 0:12:46which should help him stick to his budget.
0:12:46 > 0:12:48But you can find out how he gets on later in the programme.
0:12:53 > 0:12:58This is the quiet rural village of Llanfynydd in Carmarthenshire.
0:12:58 > 0:13:01If you're looking for transport links and facilities galore,
0:13:01 > 0:13:02look elsewhere.
0:13:02 > 0:13:06This idyllic village takes life at a slower pace,
0:13:06 > 0:13:08with residents and holiday-makers enjoying
0:13:08 > 0:13:10the stunning surrounding countryside.
0:13:12 > 0:13:14Not only are the residents worth mentioning -
0:13:14 > 0:13:17I've just got to tell you how pretty this wee village is
0:13:17 > 0:13:21with its windy roads, it's gorgeous Victorian buildings,
0:13:21 > 0:13:24and there's even a little burn running through it.
0:13:24 > 0:13:26The birdsong... It's all just gorgeous.
0:13:26 > 0:13:28Can you tell I like the place?
0:13:28 > 0:13:30So, this is the property I'm here to see.
0:13:30 > 0:13:35It's a former vicarage, which would have been attached to this church.
0:13:35 > 0:13:37It's since been carved up into six dwelling places,
0:13:37 > 0:13:41and it has a guide price of £250,000.
0:13:41 > 0:13:42Let's go explore.
0:13:44 > 0:13:46Now, it's substantial,
0:13:46 > 0:13:51but so far I can't imagine it being as many as six properties.
0:13:51 > 0:13:54Ah, OK, this starts to make sense.
0:13:54 > 0:13:56How much room is here?! This is great.
0:13:56 > 0:13:59You've got a big courtyard, loads of spaces for parking,
0:13:59 > 0:14:02over here, a two-bedroom house.
0:14:02 > 0:14:05And then here we have the former vicarage, which has been extended
0:14:05 > 0:14:09over the years and now houses five apartments.
0:14:09 > 0:14:11I'm going to start with one of the two-beds.
0:14:14 > 0:14:17Yes, there are two two-beds on the ground floor,
0:14:17 > 0:14:22plus two one-beds on the first floor, and a studio flat.
0:14:22 > 0:14:25One of the one beds has an existing tenant in,
0:14:25 > 0:14:27so I'll have a poke around the others.
0:14:29 > 0:14:32Straight through to a kitchen, which...is dated,
0:14:32 > 0:14:34not been touched for decades.
0:14:34 > 0:14:37I get the feeling this has been used as a holiday let.
0:14:37 > 0:14:40You know, you've got your pots and pans, everything you could need.
0:14:40 > 0:14:42It's definitely not modern,
0:14:42 > 0:14:45but you could walk in here and just start living.
0:14:45 > 0:14:49You have a bedroom, your first bedroom, a shower room,
0:14:49 > 0:14:51another bedroom, a bathroom,
0:14:51 > 0:14:54a reception room and bathroom through there.
0:14:54 > 0:14:57Now, originally this would have been two reception rooms.
0:14:57 > 0:15:00You would have come in through this entrance here,
0:15:00 > 0:15:01come all the way through
0:15:01 > 0:15:05and then you'd have some lovely staircase here.
0:15:05 > 0:15:08This would have been a fantastic house.
0:15:08 > 0:15:12There's obviously plenty of work to do in this property.
0:15:12 > 0:15:15To say it's dated is an understatement.
0:15:15 > 0:15:20But it's pretty spacious, and it has two bathrooms, which is a bonus.
0:15:20 > 0:15:22The other two-bed on the ground floor
0:15:22 > 0:15:26is much the same as its neighbour, including the dated decor.
0:15:29 > 0:15:33In such a rural setting, I'm definitely thinking holiday flats.
0:15:36 > 0:15:37And so to our one-bedroom.
0:15:38 > 0:15:40Come through to the hallway.
0:15:40 > 0:15:44And down this corridor here you have a bathroom and bedroom,
0:15:44 > 0:15:49and through here to a living area and kitchen.
0:15:49 > 0:15:53Ah, more signs of the '80s. Things like this.
0:15:53 > 0:15:56They were all the rage. They were acceptable in the '80s.
0:15:56 > 0:16:02# It was acceptable in the '80s. #
0:16:04 > 0:16:07The other one-bed flat is tenanted at the moment,
0:16:07 > 0:16:09but I imagine it's pretty similar to this one.
0:16:11 > 0:16:14Up on this first floor, there's also a studio flat.
0:16:16 > 0:16:19It would do for a wee holiday let once it's been refurbished.
0:16:21 > 0:16:24I love the potential of these flats,
0:16:24 > 0:16:28and we haven't even seen the two-bed house, known as The Lodge.
0:16:29 > 0:16:34It's kind of pristine, but '80s, dated, but clean.
0:16:34 > 0:16:39And down the corridor, you've got two bedrooms and a bathroom.
0:16:39 > 0:16:42And then I can see another bathroom, with an interesting maroon suite.
0:16:42 > 0:16:44You might want to think about upgrading that.
0:16:44 > 0:16:45A spiral staircase.
0:16:45 > 0:16:48I love the character and charm in places like this.
0:16:48 > 0:16:49I'd definitely keep this.
0:16:54 > 0:16:56Upstairs. Wow!
0:16:56 > 0:17:01Wow! We think open plan living is a thing that happened recently -
0:17:01 > 0:17:03no, it's like somebody's walked out of here in the '80s.
0:17:03 > 0:17:07Left it as it was, it's just a huge living space.
0:17:07 > 0:17:11Talk about character - a fireplace right in the middle of your room.
0:17:13 > 0:17:16Gorgeous views of these hills, light coming in.
0:17:16 > 0:17:20A theme is definitely emerging and that is of decorative brickwork.
0:17:20 > 0:17:24You got a column, you've got an archway.
0:17:24 > 0:17:27It's '80s, but it's high-end '80s.
0:17:27 > 0:17:29So often in auction properties,
0:17:29 > 0:17:31you come and say, "This place is in need of modernisation."
0:17:31 > 0:17:33Actually, this place is pristine,
0:17:33 > 0:17:35it just hasn't been touched for a long time.
0:17:35 > 0:17:38It screams, to me, Dallas.
0:17:38 > 0:17:42I can imagine Sue Ellen sitting here and saying something like,
0:17:42 > 0:17:43"I'll have a Scotch on the rocks."
0:17:43 > 0:17:48DALLAS THEME PLAYS
0:17:52 > 0:17:55However, I'm worried the size of the task here
0:17:55 > 0:17:58might need a Texan oil baron's budget.
0:17:58 > 0:18:00This house itself is pretty big,
0:18:00 > 0:18:04with its big living area and two downstairs bedrooms.
0:18:04 > 0:18:06And then there's those five flats.
0:18:06 > 0:18:11It's certainly a lot of property for the guide price of £250,000,
0:18:11 > 0:18:15with lots of possibilities either as a home, holiday let,
0:18:15 > 0:18:16or as resale or rental.
0:18:16 > 0:18:18Hmm...
0:18:19 > 0:18:22Time to ask a local estate agent what he makes of it.
0:18:26 > 0:18:32The flats themselves, very dated kitchens and bathrooms.
0:18:32 > 0:18:33There's double glazing.
0:18:33 > 0:18:37It's got the old aluminium with the wooden frames,
0:18:37 > 0:18:40so those jump at me that need doing.
0:18:40 > 0:18:45And possibly decor to change it to today's liking.
0:18:45 > 0:18:47Good point about the windows.
0:18:47 > 0:18:51And the agent reckons the entire lot is going
0:18:51 > 0:18:54to need around 140 grand spent on it.
0:18:54 > 0:18:57But what does the agent think should be done with the properties?
0:18:57 > 0:19:00If it was mine, I'd consider moving into the cottage
0:19:00 > 0:19:05and possibly doing some holiday lets from the flats and apartments.
0:19:05 > 0:19:07That would generate more income,
0:19:07 > 0:19:11although it would mean much more work on a weekly basis.
0:19:12 > 0:19:15The agent thought the flats as holiday lets could rent
0:19:15 > 0:19:17for £400 to £600 per week,
0:19:17 > 0:19:21depending on the time of year and the size of the flats.
0:19:24 > 0:19:25If you restored this,
0:19:25 > 0:19:29think of the profit that could be made if you sold it on,
0:19:29 > 0:19:32or think of the rental yield for six separate dwellings!
0:19:32 > 0:19:34It's pretty exciting stuff.
0:19:34 > 0:19:36Let's find out what happened when it went under the hammer.
0:19:40 > 0:19:41This is the former vicarage
0:19:41 > 0:19:44converted into five self-contained apartments,
0:19:44 > 0:19:46including converted barn.
0:19:46 > 0:19:49Start me, if you like, at £250,000.
0:19:49 > 0:19:53250? £250,000, may I say?
0:19:53 > 0:19:56£250,000, if you will.
0:19:56 > 0:19:59How about we say 240, then?
0:19:59 > 0:20:01240 to start things off.
0:20:01 > 0:20:03£240,000.
0:20:03 > 0:20:05Don't want to go much lower than that, folks.
0:20:07 > 0:20:09No-one here for it? Don't want to go any lower than that.
0:20:11 > 0:20:13No. OK, we can withdraw that one. We'll move on.
0:20:13 > 0:20:16But anyone who's just being a bit shy, do come and have a word
0:20:16 > 0:20:18and we'll see what we can do.
0:20:20 > 0:20:25It may have had no bidders, but a deal was struck for £250,000
0:20:25 > 0:20:29after the auction, by Derek and his wife Penny.
0:20:29 > 0:20:33Retired tiler Derek and PR manager Penny have a little history
0:20:33 > 0:20:35with this property,
0:20:35 > 0:20:39so I was intrigued to find out the story from Derek.
0:20:39 > 0:20:41# You're so shy. #
0:20:43 > 0:20:48- Derek, congratulations. - Thank you, Martel.- What a property.
0:20:48 > 0:20:50Oh, absolutely, absolutely.
0:20:50 > 0:20:52- I want to do everything.- OK.
0:20:52 > 0:20:54Talk me through how you found out about this.
0:20:54 > 0:20:57Well, we first saw it a couple of years ago,
0:20:57 > 0:21:02and we came to see it, and we put an offer in,
0:21:02 > 0:21:06which was accepted, but when we did the...
0:21:06 > 0:21:09some homework, we thought, "No, it's too big a project."
0:21:09 > 0:21:12So we pulled out, really.
0:21:12 > 0:21:15And somebody we'd been e-mailing in the village,
0:21:15 > 0:21:18they e-mailed us to say that the house was going to auction.
0:21:19 > 0:21:25So myself and Penny, we said, "OK, well, let's go on auction day,
0:21:25 > 0:21:28"go to the auction just to see what happens,"
0:21:28 > 0:21:32because we'd already decided that it wasn't for us.
0:21:32 > 0:21:37The auctioneer asked for opening bids, and there were none.
0:21:37 > 0:21:40So he just simply said no bids,
0:21:40 > 0:21:43but if anybody's interested, come and see us.
0:21:43 > 0:21:49So we both looked at each other and we sort of said, "Shall we?"
0:21:49 > 0:21:51And one said, "Yes,"
0:21:51 > 0:21:54and the other then turned back and said, "Yes, OK,"
0:21:54 > 0:21:56and that was it, we bought it.
0:21:56 > 0:21:57- In that instant?- Yeah.
0:21:57 > 0:22:00So a couple of hours before that, we had no intention of buying it.
0:22:00 > 0:22:02Well, it sounds like this was meant to be.
0:22:02 > 0:22:06Well, yes, but we hadn't looked at the legal pack.
0:22:06 > 0:22:08Oh! The golden rule.
0:22:08 > 0:22:14We hadn't had any survey, and we hadn't even been to see it since...
0:22:14 > 0:22:16But you had been to see it originally a couple of years ago?
0:22:16 > 0:22:17Yeah, a few years ago.
0:22:20 > 0:22:24Yep, they haven't seen it since several years before.
0:22:24 > 0:22:28However, they've been lucky that there was only one major surprise -
0:22:28 > 0:22:32that tenant I mentioned earlier, who they're happy to keep on.
0:22:32 > 0:22:34The couple currently live in Sussex,
0:22:34 > 0:22:37but have been planning to buy in the area for sometime.
0:22:37 > 0:22:41So, what's the actual plan now they've got the properties?
0:22:41 > 0:22:47- The plan is to restore it possibly to holiday use.- Yes.
0:22:47 > 0:22:50Because it's a great centre for
0:22:50 > 0:22:53athletic activities, cycling, running,
0:22:53 > 0:22:55and see what happens.
0:22:55 > 0:22:58Are you debating in your head whether to do holiday lets
0:22:58 > 0:23:01to restore it to...a sufficient standard
0:23:01 > 0:23:04that people want to come in and holiday let,
0:23:04 > 0:23:07or does part of you think about making it into a grand house again?
0:23:07 > 0:23:12Aw, that's the vanity project - to look at the house and say,
0:23:12 > 0:23:15"OK, wouldn't this be great as a single house?"
0:23:15 > 0:23:18But I think cost-wise that's a bit out of the question.
0:23:18 > 0:23:20OK. What is your budget?
0:23:21 > 0:23:23Oh, that's a tricky one.
0:23:24 > 0:23:29Top end, we've got, I should say, approaching 100,000.
0:23:29 > 0:23:32£100,000 is a lot of money,
0:23:32 > 0:23:35but I still worry whether it's going to be enough.
0:23:35 > 0:23:37However, it looks like Derek's tiling skills
0:23:37 > 0:23:38would be put to good use.
0:23:38 > 0:23:42But with major jobs like the windows to resolve,
0:23:42 > 0:23:43it might be a bit tight.
0:23:43 > 0:23:47At least in the meantime he has income coming from one tenant,
0:23:47 > 0:23:51and he hopes to be fully up and running in two years.
0:23:51 > 0:23:52I'm really happy for you.
0:23:52 > 0:23:55It sounds like this is something that's been on the back
0:23:55 > 0:23:57of your mind for years.
0:23:57 > 0:23:59And, "Should we have got it? We didn't get it.
0:23:59 > 0:24:00"Should we have got it?" -
0:24:00 > 0:24:02you would have regretted this if it had gone.
0:24:02 > 0:24:05We thought that, because in the interim couple of years,
0:24:05 > 0:24:08we've always, when we've been looking at other properties,
0:24:08 > 0:24:10we've always flicked back at this one.
0:24:10 > 0:24:14I can't wait to see what you do with the place. I really can't wait.
0:24:14 > 0:24:17- Best of luck. Thanks, Derek. - Thank you.
0:24:17 > 0:24:19Some things in life are just meant to be,
0:24:19 > 0:24:21and I get the feeling that with Penny and Derek,
0:24:21 > 0:24:23this purchase was one of them.
0:24:23 > 0:24:25What will they decide to do with the place?
0:24:25 > 0:24:27There are so many options.
0:24:27 > 0:24:28Will they go for the vanity project
0:24:28 > 0:24:32and make it into one big, gorgeous home?
0:24:32 > 0:24:34Or will they keep it as those holiday apartments?
0:24:34 > 0:24:37You can find out what decision they came to later in the show.
0:24:39 > 0:24:41Coming up near Liverpool, I see a house that needs
0:24:41 > 0:24:43a little straightening out.
0:24:43 > 0:24:45It's not actually perpendicular to the road.
0:24:45 > 0:24:47It's going back at an angle,
0:24:47 > 0:24:50so you've got these very strange shapes.
0:24:50 > 0:24:54And in Wales, it might be a huge task, but Derek's undaunted.
0:24:54 > 0:24:56Had we not bought it,
0:24:56 > 0:24:58we'd have probably have regretted it for the rest of our lives.
0:25:02 > 0:25:05Let's head back to Birmingham and, more specifically,
0:25:05 > 0:25:07four miles north-east to Erdington.
0:25:08 > 0:25:11It was in this suburb that I saw this three-bed end-terrace
0:25:11 > 0:25:15guided at £24,000 to £29,000.
0:25:15 > 0:25:18And by the time I had got there, work has already started.
0:25:20 > 0:25:24We are back to the bare brick,
0:25:24 > 0:25:25there's no ceiling,
0:25:25 > 0:25:29so this is a "start from the very beginning" project.
0:25:29 > 0:25:30# Start again
0:25:30 > 0:25:34# It can't be over Let's start again. #
0:25:34 > 0:25:37Downstairs, everything, including the kitchen sink,
0:25:37 > 0:25:38had been stripped out.
0:25:38 > 0:25:41Too bad it was in the wrong room.
0:25:41 > 0:25:43I was intrigued by the cellar space,
0:25:43 > 0:25:45and outside in the garden was a little outhouse
0:25:45 > 0:25:49crying out to be incorporated into the main building.
0:25:49 > 0:25:53Upstairs was also just bare bones.
0:25:53 > 0:25:55This was a big project.
0:25:57 > 0:25:59Enter electrical engineer Dilshad.
0:25:59 > 0:26:01He was the man for the job.
0:26:01 > 0:26:05He picked this up at auction for £90,500,
0:26:05 > 0:26:10just a little over the guide price of £24,000 to £29,000.
0:26:10 > 0:26:14He didn't help himself by missing an important clause in the legal pack
0:26:14 > 0:26:18that saw him pay an extra eight grand in additional fees.
0:26:18 > 0:26:22But, as they say, a man who has friends is never poor.
0:26:22 > 0:26:26I've got quotes for central heating, radiator system and boiler.
0:26:26 > 0:26:28- Well.- I already got a quotation for that,
0:26:28 > 0:26:30but it is a very friendly quotation.
0:26:30 > 0:26:34- OK.- For plastering, I already got the plastering quotation, as well.
0:26:34 > 0:26:36Again, this is very friendly, as well.
0:26:36 > 0:26:38So the only thing left is just the tiling.
0:26:38 > 0:26:42Tiling, um, a friend of mine will do the tiling for me, as well.
0:26:44 > 0:26:48All those mates' rates meant he had a modest budget of 20 grand,
0:26:48 > 0:26:50and having already started work on the house,
0:26:50 > 0:26:52when we met him he thought
0:26:52 > 0:26:56it would take an additional two months to complete.
0:26:56 > 0:26:58We're back, nine months later.
0:27:01 > 0:27:03It may have taken a bit longer, but
0:27:03 > 0:27:08Dilshad's house of multiple occupancy, or HMO, is taking shape.
0:27:08 > 0:27:10By creating a corridor in the entranceway,
0:27:10 > 0:27:12the front room is now a separate bedroom.
0:27:23 > 0:27:25There's not only a brand-new kitchen,
0:27:25 > 0:27:29but Dilshad has cleverly knocked through to the outhouse
0:27:29 > 0:27:32for a downstairs shower room. Perfect for a HMO.
0:27:37 > 0:27:40Upstairs, all the bedrooms are looking clean and fresh.
0:27:41 > 0:27:44Everything has been re-plastered,
0:27:44 > 0:27:47redecorated by Dilshad's team of builders and,
0:27:47 > 0:27:49being a certified electrician,
0:27:49 > 0:27:53it's all been rewired to HMO guidelines by the man himself.
0:27:55 > 0:27:57And the piece de resistance?
0:27:59 > 0:28:03A fully damp-proofed, insulated room where the cellar used to be.
0:28:03 > 0:28:04Absolutely fantastic.
0:28:05 > 0:28:09Over the last nine months, Dilshad has achieved everything
0:28:09 > 0:28:11he set out to do, but I'm curious to know
0:28:11 > 0:28:13what caused the seven-month delay.
0:28:15 > 0:28:18I was actually studying full-time for my masters degree,
0:28:18 > 0:28:19so I couldn't,
0:28:19 > 0:28:23like, manage the project full-time.
0:28:23 > 0:28:25So... And one of our main team
0:28:25 > 0:28:28workers has actually had a leg operation,
0:28:28 > 0:28:31so this has caused a little bit of a problem for us,
0:28:31 > 0:28:35so we delayed something about a good four months.
0:28:35 > 0:28:41So Dilshad really is a jack of all trades and master of all, too.
0:28:41 > 0:28:45OK, so getting a masters degree is a pretty good excuse,
0:28:45 > 0:28:49but did everything go as smoothly as he wanted it to?
0:28:49 > 0:28:51There was damp from the roof.
0:28:51 > 0:28:55We have some guttering problem leaking down on the wall,
0:28:55 > 0:28:57and it caused a little problem for us,
0:28:57 > 0:29:00so before we did any refurbishment
0:29:00 > 0:29:02we try to get rid of the damp, leaking, first.
0:29:02 > 0:29:04That's all done.
0:29:04 > 0:29:08So the rest of the work was just normal building - normal,
0:29:08 > 0:29:09regular building work.
0:29:09 > 0:29:12While the damp problem was sorted with new guttering,
0:29:12 > 0:29:16it was an unforeseen cost and the time delay was costly, too.
0:29:16 > 0:29:20Dilshad ended up spending around 35 grand.
0:29:20 > 0:29:22That does worry me.
0:29:22 > 0:29:24Don't forget, he paid over the guide price
0:29:24 > 0:29:28and he had to pay eight grand in unforeseen costs, as well.
0:29:28 > 0:29:31So how does he hope to recoup this cash?
0:29:31 > 0:29:33We want to sell the house,
0:29:33 > 0:29:37if there is any good potential buyer.
0:29:37 > 0:29:40But if this is not happening,
0:29:40 > 0:29:42we actually, we can rent it out
0:29:42 > 0:29:47exactly the same as the way we rented out our previous properties.
0:29:47 > 0:29:50Dilshad isn't short of options,
0:29:50 > 0:29:54so let's see which could be the most lucrative way to go -
0:29:54 > 0:29:55renting or selling. First,
0:29:55 > 0:30:01what did two local estate agents make of that £133,500 investment,
0:30:01 > 0:30:04starting with the agent who saw it nine months ago.
0:30:04 > 0:30:08The changes on the properties since I was last here are absolutely
0:30:08 > 0:30:10amazing, to a very high standard.
0:30:10 > 0:30:12He's done very well on the property.
0:30:12 > 0:30:14My first thought is that he's renovated this
0:30:14 > 0:30:17to a very high standard, indeed.
0:30:17 > 0:30:20I'm in agreement, but I do have one question.
0:30:20 > 0:30:24Dilshad planned to convert this to a five-bed HMO.
0:30:24 > 0:30:26But I'm not sure if, legally,
0:30:26 > 0:30:29the basement can be classed as a bedroom.
0:30:29 > 0:30:32The cellar room could not actually be classed as a fifth bedroom.
0:30:32 > 0:30:35The window is actually too small for a fire escape.
0:30:35 > 0:30:42Dilshad will have ensured that this meets current regulations
0:30:42 > 0:30:46in order to use this area as a communal room,
0:30:46 > 0:30:49but he spent £133,500 on the property.
0:30:49 > 0:30:52What could it be worth on the resale market?
0:30:54 > 0:30:58The current market value of the property would be between
0:30:58 > 0:31:01£135,000 and £142,000.
0:31:01 > 0:31:06If I was to offer this property onto the open market as an HMO at the
0:31:06 > 0:31:10present moment, then I'd be looking in the region of £145,000.
0:31:10 > 0:31:14I was expecting a little bit more than that,
0:31:14 > 0:31:17so I think I will keep it for a while
0:31:17 > 0:31:21to make sure I get the money that I'm actually asking.
0:31:21 > 0:31:24The highest valuation could see
0:31:24 > 0:31:27a potential pre-tax profit of £11,500.
0:31:27 > 0:31:29But perhaps more encouragingly,
0:31:29 > 0:31:34both agents thought the rental values of £1,200 per calendar month
0:31:34 > 0:31:37would be possible, which would generate a yield of 10%.
0:31:38 > 0:31:42So with two rental properties to look after, a full-time job,
0:31:42 > 0:31:45a brand-new masters degree, how does he do it?
0:31:47 > 0:31:53Well, thanks for my wife, she's made my life a little bit easier and
0:31:53 > 0:31:58when I go home, she actually already select the colour and design type of
0:31:58 > 0:32:02the fixtures that we are actually trying to fit in here in the kitchen
0:32:02 > 0:32:05and, of course, in the bathroom, as well.
0:32:05 > 0:32:09So she does make my life very, very easy.
0:32:12 > 0:32:14Bootle, five miles north of Liverpool,
0:32:14 > 0:32:17sits not only on the banks of the mighty Mersey,
0:32:17 > 0:32:20but also on those of the Leeds and Liverpool Canal -
0:32:20 > 0:32:24the longest canal in Britain built as a single waterway.
0:32:24 > 0:32:27Well, there's a few less ripples in these waters than there were
0:32:27 > 0:32:30in the Canal's 19th-century heyday.
0:32:30 > 0:32:32It may yet host more activity in the future,
0:32:32 > 0:32:35as multi-million pound plans to develop a district
0:32:35 > 0:32:38of canalside bars and restaurants have recently been laid out.
0:32:43 > 0:32:45When you're looking to invest in areas,
0:32:45 > 0:32:48one thing to consider is places where there's a lot of regeneration
0:32:48 > 0:32:50going on. That's certainly the case here.
0:32:50 > 0:32:52I'm only two miles from Liverpool city centre.
0:32:52 > 0:32:54Down there are the docks.
0:32:54 > 0:32:57Well, that's undergoing a huge amount of investment at the moment,
0:32:57 > 0:33:00so that's good news. So what about this place?
0:33:00 > 0:33:05£35,000 was the guide price for a two, well, two-and-a-half-bedroom,
0:33:05 > 0:33:07because of the boxroom, mid-terrace.
0:33:07 > 0:33:09Come on, that's got to be worth a look.
0:33:12 > 0:33:16Now, judging by the old signage above the row of houses here,
0:33:16 > 0:33:19I reckon this was a row of shops at some point.
0:33:19 > 0:33:22Certainly when you walk into the house,
0:33:22 > 0:33:24you're struck by the height of the ceilings.
0:33:24 > 0:33:26I mean, it's a really nice space as a result.
0:33:26 > 0:33:29And that could have been something to do with the days when it was
0:33:29 > 0:33:31a shop, maybe with a lowered ceiling with lighting or whatever.
0:33:31 > 0:33:35Anyway, now, whatever, it's a really nice-sized space.
0:33:35 > 0:33:36You've got this little porch area,
0:33:36 > 0:33:38keeping the noise of the traffic and
0:33:38 > 0:33:41the wind and rain out of the room here.
0:33:41 > 0:33:43This is your living room. It's not a bad space.
0:33:43 > 0:33:46A nice feature fireplace on there, yeah.
0:33:46 > 0:33:47Good.
0:33:48 > 0:33:52So, stairs in the middle of the property and a bit of bonus,
0:33:52 > 0:33:54a covered area under the stairs there,
0:33:54 > 0:33:57which makes them an ideal downstairs WC.
0:33:57 > 0:34:00And finally through into the rear sitting room.
0:34:00 > 0:34:02Again, not a bad sized space.
0:34:02 > 0:34:05Slightly lower ceilings in here, which is kind of intriguing.
0:34:05 > 0:34:07I need to explore upstairs and find out what's going on there.
0:34:07 > 0:34:10But leading through to your kitchen,
0:34:10 > 0:34:13it actually doesn't look to be in too bad a condition.
0:34:13 > 0:34:15I mean, if you rented this place out, that might suffice,
0:34:15 > 0:34:18but you might want to spend a bit of money sorting that out.
0:34:18 > 0:34:21Stair, door out onto the rear courtyard.
0:34:21 > 0:34:22So a lot of space downstairs.
0:34:22 > 0:34:25Actually a lot more than it seems when you look at the front of the
0:34:25 > 0:34:26property. Let's have a look upstairs.
0:34:28 > 0:34:30Well, so far, so good.
0:34:30 > 0:34:33And this is just downstairs.
0:34:33 > 0:34:35There is still the upstairs to see.
0:34:35 > 0:34:37# More than this... #
0:34:39 > 0:34:43Well, down at the end of a bit of a long corridor upstairs
0:34:43 > 0:34:45is the bathroom and loo. Bit of a bonus,
0:34:45 > 0:34:48you've got a little cupboard there with a combi boiler in,
0:34:48 > 0:34:51which looks relatively new, so that's good news.
0:34:51 > 0:34:55And as I said, down this rather long corridor, one of the bedrooms there.
0:34:55 > 0:34:57That's not a bad size.
0:34:57 > 0:34:59Lots of damp over there in that corner,
0:34:59 > 0:35:03so my guess is it something to do with the guttering or the roof.
0:35:03 > 0:35:07That's the small, sort of half-bedroom that's mentioned.
0:35:07 > 0:35:12I mean, it really is too small to call a bedroom legally, for sure.
0:35:12 > 0:35:16But at the front of the property, you've got this really nice-sized...
0:35:16 > 0:35:19I guess it's the master bedroom, but interesting, if you notice,
0:35:19 > 0:35:21the way that the house is actually angled,
0:35:21 > 0:35:23it's not actually perpendicular to the road.
0:35:23 > 0:35:24It's going back out of angle.
0:35:24 > 0:35:26So you've got these very strange shapes,
0:35:26 > 0:35:29but we'll live with that. What can we do about this situation here,
0:35:29 > 0:35:31though? I guess you've got two options.
0:35:31 > 0:35:35One, you bring that wall this way.
0:35:35 > 0:35:37You'd still have a reasonable-sized room here,
0:35:37 > 0:35:40and then at least you'd have a half-decent third bedroom there.
0:35:40 > 0:35:41That's not a bad option.
0:35:41 > 0:35:43The other option, which you might prefer,
0:35:43 > 0:35:46is keeping it as two bedrooms and convert that into an en-suite.
0:35:46 > 0:35:48That would actually be really lovely.
0:35:48 > 0:35:50I guess that decision comes down to whatever
0:35:50 > 0:35:51you're going to use this for,
0:35:51 > 0:35:53what difference it would make
0:35:53 > 0:35:56in terms of the resale value, or rental, or just liveability.
0:35:57 > 0:35:59So that small room is perhaps the
0:35:59 > 0:36:02one area that you could consider changing.
0:36:02 > 0:36:04The damp needs checking out and the
0:36:04 > 0:36:06backyard could certainly do with some attention.
0:36:06 > 0:36:08And then it's really a case of updating and sprucing up.
0:36:08 > 0:36:12But, you know, if you really want to maximise your investment here,
0:36:12 > 0:36:14actually sticking to the current layout
0:36:14 > 0:36:16would probably make most sense.
0:36:16 > 0:36:18MUSIC PLAYS: Leave Me Alone by The Corrs
0:36:18 > 0:36:21# Leave me alone
0:36:21 > 0:36:26- # Out on my own - Out on my own
0:36:26 > 0:36:31# Leave me alone... #
0:36:31 > 0:36:34So would a local estate agent keep the status quo,
0:36:34 > 0:36:36or does the house justify a few changes?
0:36:37 > 0:36:39I'm thinking that it's an ideal buy
0:36:39 > 0:36:42for an investor landlord, because,
0:36:42 > 0:36:44actually, it doesn't need a great deal doing to it.
0:36:44 > 0:36:47So a smartening up of the kitchen and bathroom,
0:36:47 > 0:36:50laminate floors downstairs, new carpets upstairs,
0:36:50 > 0:36:52perhaps venetian blinds.
0:36:52 > 0:36:54Decorating, lots of cosmetic,
0:36:54 > 0:36:57get it looking sweet enough that, when you do your viewings,
0:36:57 > 0:37:00your tenants like what they see and they move in.
0:37:00 > 0:37:01Of course, as a landlord,
0:37:01 > 0:37:03it's not just the appearance of a property that matters.
0:37:03 > 0:37:06You're responsible for health and safety issues,
0:37:06 > 0:37:08so make sure all the electrics,
0:37:08 > 0:37:10gas and installations are all safe
0:37:10 > 0:37:14and certified by appropriately qualified tradespeople.
0:37:14 > 0:37:16So what kind of numbers could we be looking at
0:37:16 > 0:37:20on this property, guided at 35,000?
0:37:20 > 0:37:23With regards to sales value, I would reckon when the property was done,
0:37:23 > 0:37:28made to look good, it would easily achieve between 45 to £48,000.
0:37:28 > 0:37:30As far as the rental is concerned,
0:37:30 > 0:37:34I would imagine that there would be no problem achieving a rental
0:37:34 > 0:37:37of around £400 per calendar month for this house.
0:37:37 > 0:37:41£400 a calendar month and let's say £50,000 investment to buy and
0:37:41 > 0:37:44renovate and you'd be looking at a yield of around 10%.
0:37:45 > 0:37:48No wonder buy-to-let investors like this area.
0:37:51 > 0:37:53For a guide price of £35,000, it's almost like
0:37:53 > 0:37:56I'm doing the show ten years ago.
0:37:56 > 0:37:58That seems like a really good opportunity to me.
0:37:58 > 0:38:00Let's see who agreed when it went under the hammer.
0:38:03 > 0:38:05A mid-terrace building.
0:38:05 > 0:38:08You've got double glazing and central heating.
0:38:08 > 0:38:10The guide's £35,000. Who's in on this one at 30?
0:38:10 > 0:38:11Thank you, sir, straight in at 30.
0:38:11 > 0:38:1432? 32 I have. 34?
0:38:14 > 0:38:1534, you're back.
0:38:15 > 0:38:1736? 38?
0:38:18 > 0:38:20Anybody here for this at £38,000?
0:38:20 > 0:38:21Shall we make it 37?
0:38:21 > 0:38:23Can I say 37 to my other bidders?
0:38:23 > 0:38:24Anybody else, 37,000?
0:38:24 > 0:38:26If not, 36 and a half.
0:38:26 > 0:38:2837, may I say?
0:38:28 > 0:38:30Thank you. 37 and a half.
0:38:30 > 0:38:3137 and a half.
0:38:32 > 0:38:34Thank you. 38? You're now in.
0:38:34 > 0:38:36There's a new bidder. 38.
0:38:36 > 0:38:3738 and a half, may I say?
0:38:37 > 0:38:38You're saying no.
0:38:38 > 0:38:3938,000, stood up, then.
0:38:39 > 0:38:41For the first time. 38 for the second time.
0:38:41 > 0:38:43It's against a couple of you sitting down.
0:38:43 > 0:38:45Are we all done? Third and final time.
0:38:45 > 0:38:48At £38,000, all done?
0:38:49 > 0:38:52You won it, sir, well done at 38.
0:38:54 > 0:38:59And so just slightly above the guide price at 38,000,
0:38:59 > 0:39:01the successful bidder was Norman.
0:39:01 > 0:39:05He has bought this house as a buy to let investment and,
0:39:05 > 0:39:07with 45 properties to his name,
0:39:07 > 0:39:10it's something he's done a few times.
0:39:11 > 0:39:17# Again and again and again and again and again and again and again
0:39:17 > 0:39:21# Why don't you do it Why don't you do it again? #
0:39:21 > 0:39:22Norman, very good to meet you.
0:39:22 > 0:39:25- Nice to meet you.- Congratulations.
0:39:25 > 0:39:27- Thank you.- So, amazing, isn't it?
0:39:27 > 0:39:312017, you can pick up a pretty decent house for 38,000 quid.
0:39:31 > 0:39:33- It is, yeah.- Yeah.
0:39:33 > 0:39:36Tell me, apart from the price, why you wanted to buy it.
0:39:36 > 0:39:39Basically on the price and its current condition.
0:39:39 > 0:39:42- Yeah.- And location, obviously.
0:39:42 > 0:39:45- Yeah.- What do you know about what's happening in this area,
0:39:45 > 0:39:47because it has got good things happening, hasn't it?
0:39:47 > 0:39:49- Yeah.- You've got the docks at the end of the road,
0:39:49 > 0:39:52which obviously they invested and spent a lot of money recently.
0:39:52 > 0:39:54- Right.- So it's an up-and-coming area.
0:39:54 > 0:39:57What kind of rental do you think this place might...?
0:39:57 > 0:40:00About 450 a month. Maybe a little bit more.
0:40:00 > 0:40:02OK. But way over 5,000 quid, then, per year?
0:40:02 > 0:40:03Oh, yeah, definitely, yeah.
0:40:03 > 0:40:05On a £38,000 investment.
0:40:05 > 0:40:07- That's right, yeah.- It's like...
0:40:07 > 0:40:10- Very good, isn't it? - Yeah! Definitely!
0:40:10 > 0:40:14Norman's been building his 45-property portfolio
0:40:14 > 0:40:15over the past 25 years...
0:40:17 > 0:40:20..buying most of his properties in the local area.
0:40:20 > 0:40:22And, after all those years of experience,
0:40:22 > 0:40:26he knows exactly what makes a good buy to let investment.
0:40:28 > 0:40:31How many times have you had a situation where you've thought,
0:40:31 > 0:40:33"I don't want to do this any more?"
0:40:33 > 0:40:34Well, several times.
0:40:34 > 0:40:36THEY LAUGH
0:40:36 > 0:40:39- Definitely.- What have been those circumstances?
0:40:40 > 0:40:43Bad tenants, not paying, etc, you know.
0:40:43 > 0:40:46And obviously you buy a property and you start renovating it
0:40:46 > 0:40:50and not realising there's a lot more problems with the house.
0:40:50 > 0:40:53- Right.- That's why I tend to buy properties like this now.
0:40:53 > 0:40:54That don't want too much doing to them.
0:40:54 > 0:40:57- Right.- You can turn them over a lot quicker, as well, you see.
0:40:57 > 0:40:59Exactly. Have you got a team of people that you work with?
0:40:59 > 0:41:01No, it's just me and Ken, who works for me.
0:41:01 > 0:41:03Just the two of us.
0:41:03 > 0:41:06- Oh.- The only people I get in is an electrician, obviously,
0:41:06 > 0:41:09check all the electrics and do his job.
0:41:09 > 0:41:12I've got a guy to do the gas side, as well, check the boiler out.
0:41:12 > 0:41:14- Right.- And check all that out.
0:41:14 > 0:41:17And I've got another guy who does all the carpets and that, as well.
0:41:17 > 0:41:19- Right.- All the laminating and that.
0:41:19 > 0:41:22OK. So, what are you going to do to this place?
0:41:22 > 0:41:24Obviously in the back bedroom
0:41:24 > 0:41:27there's a leak on the roof at the back,
0:41:27 > 0:41:29so I need to get that sorted out.
0:41:29 > 0:41:33In the bathroom, I'm going to put an electric shower in.
0:41:33 > 0:41:35What about the kitchen? What are you doing about that?
0:41:35 > 0:41:37I probably might retile it, something like that.
0:41:37 > 0:41:40- Just clean it up.- Keep the units? - Yeah, keep the units in.
0:41:40 > 0:41:42Yeah, they're in good condition, yeah.
0:41:42 > 0:41:44OK. What's the budget for all that?
0:41:44 > 0:41:45It'll be about £3,000.
0:41:45 > 0:41:47- Three!- Three grand, yeah.
0:41:47 > 0:41:49- A fully renovated house. - Keep it tight.
0:41:49 > 0:41:51No kidding.
0:41:51 > 0:41:54And along with that VERY tight £3,000 budget,
0:41:54 > 0:41:57he's aiming to complete the work in just three weeks,
0:41:57 > 0:42:01so it really will be bing, bang, boom and then onto the next one.
0:42:05 > 0:42:06So you've got 45.
0:42:06 > 0:42:08- Yeah.- When do you stop?
0:42:08 > 0:42:11Probably the next couple of years, I'll probably stop then.
0:42:11 > 0:42:12How many do you want to get? 60?
0:42:12 > 0:42:14No, probably about 50, 55, maybe, you know.
0:42:14 > 0:42:17And is that enough to provide a residual income?
0:42:17 > 0:42:21Yeah. With a decent income, yeah. Definitely, yeah.
0:42:21 > 0:42:23Did you set out with this in mind, 25 years ago?
0:42:23 > 0:42:25Well, I was doing it part time there.
0:42:25 > 0:42:28I've been working for different companies and doing it at weekends
0:42:28 > 0:42:29and nights and that, you know.
0:42:29 > 0:42:33It's only the last five years I've been doing it full-time, you know.
0:42:33 > 0:42:35What's the best bits about it?
0:42:35 > 0:42:37When I finish!
0:42:37 > 0:42:38THEY LAUGH
0:42:39 > 0:42:40Well, listen, congratulations.
0:42:40 > 0:42:42- Yeah.- And good luck with it.
0:42:42 > 0:42:44- Yeah.- I look forward to seeing how you get on.
0:42:44 > 0:42:46All right, thanks.
0:42:46 > 0:42:48Well, Norman really making the most of the opportunities
0:42:48 > 0:42:52there seem to be here in Liverpool at the moment for buy to let.
0:42:52 > 0:42:55Keeping his renovation project down really low, that £3,000,
0:42:55 > 0:42:58not doing anything that he doesn't have to do.
0:42:58 > 0:43:02How will he get on? You can find out later in the show.
0:43:05 > 0:43:08That's one property down, but what about the other two?
0:43:08 > 0:43:11How have they done? Will we see amazing achievements,
0:43:11 > 0:43:14or arduous anti-climaxes?
0:43:14 > 0:43:16I'm definitely keen to find out.
0:43:16 > 0:43:17Let's go back right now.
0:43:21 > 0:43:24It was in south-west Wales, in the village of Llanfyndd,
0:43:24 > 0:43:26where we first saw a rather large
0:43:26 > 0:43:28collection of properties up for sale.
0:43:30 > 0:43:34You've got a big courtyard, loads of spaces for parking.
0:43:34 > 0:43:37Over here, a two-bedroomed house and then here,
0:43:37 > 0:43:41we have the former vicarage, which has been extended over the years
0:43:41 > 0:43:43and now houses five apartments.
0:43:44 > 0:43:48Yes, we had six potential properties here with a two-bed house,
0:43:48 > 0:43:51known as The Lodge, and those five apartments,
0:43:51 > 0:43:53ranging from one studio flat
0:43:53 > 0:43:57to two one-bed flats and two two-bed flats.
0:43:57 > 0:44:00So, if you were looking to get a collection of properties,
0:44:00 > 0:44:03this was a ready-made property portfolio.
0:44:03 > 0:44:06But with a fair amount of renovation and updating to do,
0:44:06 > 0:44:09this monster of a project scared off
0:44:09 > 0:44:12all potential bidders in the auction room.
0:44:12 > 0:44:13No-one here for it?
0:44:13 > 0:44:17But it was bought after the auction by Derek and his wife Penny, who,
0:44:17 > 0:44:19having nearly brought the property a few years ago,
0:44:19 > 0:44:24decided just to go along out of interest to see what it sold for,
0:44:24 > 0:44:27only to end up buying it for 250 grand.
0:44:28 > 0:44:30Well, it sounds like this was meant to be.
0:44:30 > 0:44:34Well, yes, but we hadn't looked at the legal pack.
0:44:34 > 0:44:37Oh. The golden rule.
0:44:37 > 0:44:39We haven't had any survey.
0:44:39 > 0:44:41And we hadn't even been to see it since...
0:44:41 > 0:44:44You had been to see it originally a couple of years ago?
0:44:44 > 0:44:45Yeah, a few years ago.
0:44:45 > 0:44:48# Call it fate or what you want
0:44:48 > 0:44:50# You might try to fight the feeling but... #
0:44:50 > 0:44:54Well, fate or otherwise, it was now Derek and Penny's,
0:44:54 > 0:44:56and they hoped they'd found an option
0:44:56 > 0:44:58to maximise all the properties here.
0:44:58 > 0:45:03The plan is to restore it, possibly, to holiday use.
0:45:03 > 0:45:09- Yes.- Because it's a great centre for athletic activities, cycling,
0:45:09 > 0:45:13running. But, yeah, and see what happens.
0:45:15 > 0:45:18And retired tiler Derek wasn't going to rush this,
0:45:18 > 0:45:23with a two-year timescale, and he'd given himself a 100 grand budget.
0:45:23 > 0:45:25And now, just four months on,
0:45:25 > 0:45:30we thought we'd pop back just to see how it was all going.
0:45:30 > 0:45:34# Let's begin... #
0:45:35 > 0:45:39This is The Lodge, which is my home at the moment.
0:45:39 > 0:45:41Very little has changed here,
0:45:41 > 0:45:44except that I've cleaned it thoroughly from top to bottom,
0:45:44 > 0:45:49so it's a reasonably nice place to live.
0:45:49 > 0:45:51The windows obviously have been changed
0:45:51 > 0:45:54and I've done a quick tart-up of the kitchen
0:45:54 > 0:45:57and the tiles behind the units and the kitchen.
0:45:57 > 0:45:59It was easier to take them off than to clean them,
0:45:59 > 0:46:01to give you some idea how dirty it was.
0:46:03 > 0:46:06Derek's returned home to his wife Penny and their house in Sussex most
0:46:06 > 0:46:10weekends, but the Lodge has been his base camp during the week,
0:46:10 > 0:46:13enabling him to crack on with various-sized flats.
0:46:14 > 0:46:18With one of the flats already occupied with a long-term tenant,
0:46:18 > 0:46:21his main focus has been on the other four flats.
0:46:23 > 0:46:27This is flat four, where some of the major work is going on
0:46:27 > 0:46:30and we've stripped off all the mortar from the walls,
0:46:30 > 0:46:35because the damp-proof company are going to put a membrane on the wall
0:46:35 > 0:46:38before we put insulated plasterboard back,
0:46:38 > 0:46:40which will give us a higher degree of insulation.
0:46:40 > 0:46:43And we've also revealed a lovely arch over the door,
0:46:43 > 0:46:46which we are going to leave uncovered.
0:46:46 > 0:46:48And once all that's done,
0:46:48 > 0:46:52then it's just to continue with the kitchens and bathrooms
0:46:52 > 0:46:56and dealing with the miles and miles of textured coving.
0:46:58 > 0:47:03Sorting out damp issues and starting from a solid base makes sense.
0:47:03 > 0:47:06And elsewhere, he's started some of the kitchen spaces
0:47:06 > 0:47:09and even decorated some of the rooms.
0:47:09 > 0:47:12But where does he feel he's currently at?
0:47:12 > 0:47:15Now we've got a good team of people working for us
0:47:15 > 0:47:18and we're at the end of the beginning,
0:47:18 > 0:47:23so we know what we're doing and, generally, it's going OK, I think.
0:47:23 > 0:47:25# This is the end of the beginning
0:47:25 > 0:47:29# Not the beginning of the end... #
0:47:30 > 0:47:33Yes, well, at least he can see the starting line.
0:47:33 > 0:47:37This project is definitely more of a marathon than a sprint,
0:47:37 > 0:47:40which will suit keen runner Derek down to the ground,
0:47:40 > 0:47:43having just reached an impressive landmark with his running.
0:47:44 > 0:47:47I did my 100th marathon, which was at Brighton.
0:47:47 > 0:47:49So I did that successfully.
0:47:49 > 0:47:52I then did London two weeks later
0:47:52 > 0:47:55and got my good-for-age place, which,
0:47:55 > 0:47:57for the over 60s, is 3:45
0:47:57 > 0:48:00and I did 3.43, which was good.
0:48:00 > 0:48:03I've done three marathons since
0:48:03 > 0:48:08and I've got my next one this coming Sunday, which will be number 104.
0:48:08 > 0:48:12# Ooh runnin' runnin' runnin'
0:48:12 > 0:48:17# Runnin' runnin' runnin runnin' from myself no more... #
0:48:20 > 0:48:23Derek's definitely in this project for the long run,
0:48:23 > 0:48:26with at least another year and a half of work ahead of him.
0:48:26 > 0:48:31But, at this stage, how far is he into his 100 grand budget?
0:48:31 > 0:48:33So far, we've spent...
0:48:33 > 0:48:37I haven't added it up the last couple of weeks,
0:48:37 > 0:48:41but I think it's between £32-33,000,
0:48:41 > 0:48:43so possibly 35, top end.
0:48:43 > 0:48:45Are we on track?
0:48:45 > 0:48:46Yes, I think we are.
0:48:47 > 0:48:51With a £250,000 purchase price and,
0:48:51 > 0:48:54if he sticks to that 100 grand budget,
0:48:54 > 0:49:00that's £350,000 sunk into this potential holiday let business.
0:49:00 > 0:49:04But is he making steps in the right direction with his current plans?
0:49:04 > 0:49:07What do two local estate agents think?
0:49:07 > 0:49:10The Lodge, the layout is absolutely fine.
0:49:10 > 0:49:13Obviously, it needs to be dragged back into the 21st century.
0:49:13 > 0:49:15The key thing, at the moment, obviously,
0:49:15 > 0:49:18is to modernise the five flats, replace bathrooms and kitchens.
0:49:18 > 0:49:20They are
0:49:20 > 0:49:21retro, to say the least.
0:49:21 > 0:49:23The only way he's going to get good demand in this area,
0:49:23 > 0:49:26because we are so far away from the city centre,
0:49:26 > 0:49:28and for holiday lets or otherwise, is high spec.
0:49:28 > 0:49:31So it needs to be granite worktops, stone, oak,
0:49:31 > 0:49:34and really appealing to the general public.
0:49:34 > 0:49:38OK, let's break this project down a bit and look at the numbers.
0:49:38 > 0:49:41A two-bedroomed lodge could be sold separately,
0:49:41 > 0:49:43so what might that be worth?
0:49:43 > 0:49:49I believe that the value of the lodge would be £190,000-£200,000.
0:49:49 > 0:49:54This two-bed lodge, once done up, would be £145,000.
0:49:54 > 0:49:57So, VERY different valuations there,
0:49:57 > 0:50:00but it's always tricky valuing unfinished properties.
0:50:00 > 0:50:02What about the apartment blocks?
0:50:02 > 0:50:05Flats are very difficult, if not impossible to sell on their own,
0:50:05 > 0:50:08so you have to really sell the building with the flats in it.
0:50:08 > 0:50:14The building on its own, with flats all finished, would be £420,000.
0:50:14 > 0:50:19So, with combined resale values in excess of £550,000,
0:50:19 > 0:50:24it seems Derek and Penny's 350 grand investment's pretty safe.
0:50:24 > 0:50:27In addition, with holiday lets predicted by the agent
0:50:27 > 0:50:31to bring in around in the region of £40-50,000 a year,
0:50:31 > 0:50:36that could see an annual rental yield of around the 10% mark.
0:50:36 > 0:50:40But there's still a long road ahead for marathon man Derek.
0:50:40 > 0:50:44So, does he now regret the decision to take on such a big task?
0:50:46 > 0:50:47Had we not bought it,
0:50:47 > 0:50:50we'd have probably regretted it for the rest of our lives,
0:50:50 > 0:50:52so it's a project, we've done it,
0:50:52 > 0:50:57hopefully it's going to work, but, hey, at the end of the day,
0:50:57 > 0:50:59you know, what's the phrase - you Yolo?
0:50:59 > 0:51:02You only live once. So, yeah, there we go.
0:51:03 > 0:51:04Quite right, Derek.
0:51:04 > 0:51:09And I, for one, can't wait to see it when it's all finished.
0:51:09 > 0:51:12# And this is the end of the beginning
0:51:12 > 0:51:16# Not the beginning of the end
0:51:18 > 0:51:22# No matter where the river beds
0:51:23 > 0:51:27# Some day we both will meet again. #
0:51:33 > 0:51:36Back to Bootle in Merseyside now we go,
0:51:36 > 0:51:38where this two and a half bed property caught my eye,
0:51:38 > 0:51:42not just because of its £35,000 guide price,
0:51:42 > 0:51:44or its relatively good condition,
0:51:44 > 0:51:47but with something of an optical illusion upstairs.
0:51:49 > 0:51:52You notice the way that the house is actually angled,
0:51:52 > 0:51:54it's not actually perpendicular to the road, it's going back
0:51:54 > 0:51:59at an angle, so you've got these very strange shapes.
0:51:59 > 0:52:01# Oh watch a man
0:52:01 > 0:52:03# There goes Norman
0:52:05 > 0:52:08# He'll get you if he can There goes Norman
0:52:11 > 0:52:13# There goes Norman... #
0:52:16 > 0:52:20Norman certainly had a keen eye for property, as this became his 45th
0:52:20 > 0:52:25purchase when he added to his rental portfolio for 38 grand.
0:52:25 > 0:52:27So you've got 45.
0:52:27 > 0:52:29- Yeah.- When do you stop?
0:52:29 > 0:52:32Probably the next couple of years. I'll probably stop then.
0:52:32 > 0:52:35How many times have you had a situation where you've thought,
0:52:35 > 0:52:36"I don't want to do this any more?"
0:52:36 > 0:52:37Several times!
0:52:37 > 0:52:39THEY LAUGH
0:52:39 > 0:52:42- Definitely.- What's the best bit about it?
0:52:42 > 0:52:43When I finish!
0:52:46 > 0:52:49With such an experienced pair of hands on this property,
0:52:49 > 0:52:54the only problem I could see was the very tight £3,000 budget.
0:52:54 > 0:53:00Well, seven weeks on, has Norman got this place ready to rent?
0:53:00 > 0:53:02MUSIC PLAYS: It's All Good by MC Hammer
0:53:04 > 0:53:05# It's all good
0:53:05 > 0:53:06# Y'all ready for this?
0:53:06 > 0:53:09# Uh-huh it's all good
0:53:09 > 0:53:12# Hey
0:53:12 > 0:53:14# It's all good
0:53:16 > 0:53:20As rented properties go, this one is smart, clean and welcoming,
0:53:20 > 0:53:23with the fireplace giving the place some character.
0:53:23 > 0:53:26And you'd think this was the new kitchen,
0:53:26 > 0:53:28but it's in fact it's the old one scrubbed up well.
0:53:30 > 0:53:32While upstairs the damp has been fixed
0:53:32 > 0:53:36and that quality floor and decoration is throughout.
0:53:36 > 0:53:38The bathroom is also looking great,
0:53:38 > 0:53:41with modern tiling and an electric shower.
0:53:42 > 0:53:45But what's Norman most pleased with?
0:53:45 > 0:53:47I'm most pleased with this room
0:53:47 > 0:53:50because it looked so grim and dirty before.
0:53:50 > 0:53:55We bought a second-hand fireplace off the internet and also painted
0:53:55 > 0:53:58a couple of walls grey and put new flooring down.
0:53:58 > 0:54:00It just looks completely different
0:54:00 > 0:54:01and brighter and fresher.
0:54:01 > 0:54:03What we tried to do...
0:54:03 > 0:54:06The normal colour for, obviously, landlords, is magnolia!
0:54:06 > 0:54:10So what we've done, in a few areas, is to paint certain walls grey,
0:54:10 > 0:54:12which is obviously the in colour at the moment,
0:54:12 > 0:54:16just to break the magnolia up and look at bit more, obviously, homely.
0:54:18 > 0:54:20Yes, it's nice to see some thought
0:54:20 > 0:54:22put into the look of a rental property.
0:54:22 > 0:54:26But while this was a straightforward renovation for an experienced
0:54:26 > 0:54:28developer, there's always something new to learn.
0:54:30 > 0:54:34Probably one thing I have learnt is, obviously with the consumer meter,
0:54:34 > 0:54:36really, that someone's done a job
0:54:36 > 0:54:39and obviously never done it correctly.
0:54:39 > 0:54:41I got a qualified electrician to, obviously,
0:54:41 > 0:54:43come and check the electrics,
0:54:43 > 0:54:45and when he looked at the consumer meter,
0:54:45 > 0:54:47he noticed there was a panel missing at the back,
0:54:47 > 0:54:52which could be a fire hazard, so obviously we changed that.
0:54:53 > 0:54:56Building regulations are strict about the height,
0:54:56 > 0:55:00positioning and type of wiring for consumer units.
0:55:00 > 0:55:03In addition, the UK Government has plans to change
0:55:03 > 0:55:06ALL electricity meters to smart meters by 2020,
0:55:06 > 0:55:10and they can be beneficial to tenants as it helps
0:55:10 > 0:55:12them control energy use better.
0:55:13 > 0:55:16Norman had help from his friend and employee Ken
0:55:16 > 0:55:18and qualified tradesmen,
0:55:18 > 0:55:22but they did go over their three-week timescale by a month,
0:55:22 > 0:55:24as there was a delay in getting started.
0:55:24 > 0:55:27And how about that tight three grand budget?
0:55:30 > 0:55:32The budget - we were going to spend about £3,000,
0:55:32 > 0:55:36but we ended up spending about £3,500.
0:55:37 > 0:55:40Because a few extra jobs needed to be done.
0:55:40 > 0:55:42One was the consumer meter.
0:55:42 > 0:55:47The other couple of things was we replaced the two smoke alarms
0:55:47 > 0:55:49and also put a heat detector in the kitchen
0:55:49 > 0:55:52and put two carbon monoxide detectors in.
0:55:53 > 0:55:56Well, still good control of the purse strings,
0:55:56 > 0:55:58but what's the plans now?
0:55:59 > 0:56:01We decided we were going to rent the
0:56:01 > 0:56:03property out and we have actually got a tenant lined up.
0:56:03 > 0:56:05She's going to be moving in next week.
0:56:08 > 0:56:10Great to hear, but will the thoughts
0:56:10 > 0:56:12of two local estate agents be equally pleasing?
0:56:12 > 0:56:15Let's start with the thoughts of the agent
0:56:15 > 0:56:17who saw it before the renovation.
0:56:18 > 0:56:20This is my second visit to the property.
0:56:20 > 0:56:23I think the buyer's done tremendous things here.
0:56:23 > 0:56:25They haven't overspent, so
0:56:25 > 0:56:28I would guess that they're a seasoned landlord.
0:56:28 > 0:56:30They know what they're doing. They know if they overspend,
0:56:30 > 0:56:32they don't really get their money back,
0:56:32 > 0:56:35so they've spent what's needed to enable them
0:56:35 > 0:56:37to get a tenant quite quickly. So, all in all,
0:56:37 > 0:56:39they've done all the right things and it looks smashing.
0:56:39 > 0:56:42I think there's a demand for property that is done
0:56:42 > 0:56:44to quite a high standard.
0:56:44 > 0:56:47I see a lot of properties that are little bit rundown,
0:56:47 > 0:56:50so it's nice to be in one that's been recently renovated.
0:56:52 > 0:56:57Norman paid £38,000 at auction and a renovation spend of 3,500
0:56:57 > 0:57:00means his total spend is £41,500.
0:57:00 > 0:57:02What kind of figure can we expect for rental?
0:57:06 > 0:57:08I think, as a rental, per calendar month,
0:57:08 > 0:57:11this property would achieve £450.
0:57:11 > 0:57:15As far as rental is concerned, I would expect the house to be able
0:57:15 > 0:57:18to be easily let for somewhere around about
0:57:18 > 0:57:21£450- £460 per calendar month.
0:57:21 > 0:57:22It's a bit lower than what I thought.
0:57:22 > 0:57:25I've actually got a tenant moving in next week
0:57:25 > 0:57:27and I'll be getting £500 per calendar month.
0:57:28 > 0:57:34And at £500 per calendar month, it gives Norman a storming 14.5% yield.
0:57:34 > 0:57:37A great return and an easy turnaround.
0:57:37 > 0:57:41But what can we learn about Norman's experience doing 40-plus properties?
0:57:46 > 0:57:49First bit of advice I'd give to anyone is obviously make sure
0:57:49 > 0:57:52you check the property and if you're not too sure of anything,
0:57:52 > 0:57:54obviously get the experts in to look at it for you,
0:57:54 > 0:57:56any structural issues, etc.
0:57:56 > 0:58:00And a must at auction is always check the legal pack.
0:58:00 > 0:58:01That's a must.
0:58:05 > 0:58:08Well, there are auctions taking place all over the country
0:58:08 > 0:58:09at most times of the year.
0:58:09 > 0:58:12And we're at a fair share to capture the action.
0:58:12 > 0:58:15Yeah, so join us next time for more Homes Under The Hammer.
0:58:15 > 0:58:16- Goodbye.- Goodbye.- Bye.