0:00:02 > 0:00:03Hello and welcome to the show.
0:00:03 > 0:00:06Now, one of the golden rules on Homes Under The Hammer is
0:00:06 > 0:00:09never judge a book by its cover -
0:00:09 > 0:00:12always go and view that property before bidding for it.
0:00:12 > 0:00:15Yes, like a book, old properties are different,
0:00:15 > 0:00:16and unless you've been to view it,
0:00:16 > 0:00:20how can you possibly know whether it needs a lick of paint or a total
0:00:20 > 0:00:23- refurbishment?- Yeah, have a look inside - if you like what you see,
0:00:23 > 0:00:26ask yourself, if you're ready to start a new chapter,
0:00:26 > 0:00:28why not start it down at your local property auction?
0:00:55 > 0:00:58In an auction room full of buyers trying to outbid each other,
0:00:58 > 0:01:00the atmosphere can get pretty intense.
0:01:00 > 0:01:03But the best thing to do is try and keep a level head,
0:01:03 > 0:01:06and use that adrenaline for your advantage.
0:01:06 > 0:01:10Yeah, let's see where the buzz of the auction led the buyers on today's show.
0:01:11 > 0:01:16This two-bed terrace in Caerphilly has me appreciating
0:01:16 > 0:01:17the little things in life.
0:01:17 > 0:01:20The world's smallest radiator, so maybe The Borrowers lived here?!
0:01:22 > 0:01:24I'm at the opposite end of the spectrum,
0:01:24 > 0:01:26at this former mill in Stoke-on-Trent.
0:01:26 > 0:01:30The question is, what do you do with something this big?
0:01:30 > 0:01:31What are your options?
0:01:32 > 0:01:36My options for this mid-terrace in Merseyside seem pretty clear - well,
0:01:36 > 0:01:40to me, at least. Making it open-plan is the only way to go.
0:01:40 > 0:01:42I feel like I've said that a thousand times before!
0:01:43 > 0:01:46All these properties have been sold at auction,
0:01:46 > 0:01:47and we'll find out who bought them
0:01:47 > 0:01:50and what they paid when they went under the hammer.
0:01:50 > 0:01:52And you've got it, sir.
0:01:56 > 0:01:59This is Abertysswg, a small Welsh village in Caerphilly,
0:01:59 > 0:02:04just south of the Brecon Beacons, and 25 miles from Cardiff.
0:02:04 > 0:02:07There are some local shops in this former mining village,
0:02:07 > 0:02:11while the cinema and bigger shops are a reasonable drive away.
0:02:11 > 0:02:15So, you can enjoy the scenery of the Welsh valleys as well as decent
0:02:15 > 0:02:19amenities. Surrounded by these open, rolling hills,
0:02:19 > 0:02:22you have to walk up quite a steep hill just to get to your house.
0:02:22 > 0:02:26But that's pretty typical in a Welsh village like that, and you know what,
0:02:26 > 0:02:27it's worth it for the views.
0:02:27 > 0:02:29The property I'm here to see, here it is,
0:02:29 > 0:02:34it's a two-bedroom mid-terrace with a guide price of £35,000-plus.
0:02:34 > 0:02:37Pebble dash exterior, old-school.
0:02:37 > 0:02:39More modern, the double-glazed windows.
0:02:39 > 0:02:40So far, so good, let's look inside.
0:02:42 > 0:02:48Inside... OK, what strikes me is, the place is pretty bright and...
0:02:48 > 0:02:49No smell of damp.
0:02:49 > 0:02:51This is a great-proportioned room.
0:02:51 > 0:02:55It's square. Here's a feature, perhaps once upon a time,
0:02:55 > 0:02:59it looks like a fireplace has been plastered over.
0:02:59 > 0:03:04You've got your wallpaper coming off, but pretty cosmetic.
0:03:04 > 0:03:07Yeah, I like it. You've got your floors are...
0:03:07 > 0:03:12They're linoleum - pretty cold, but put some nice warm carpet on here,
0:03:12 > 0:03:14you could make a real difference.
0:03:14 > 0:03:16I'm a big fan of open-plan living,
0:03:16 > 0:03:20so you're coming through into your kitchen from your living room, you could knock this down.
0:03:20 > 0:03:22But it's not a partition wall, it'd be tricky.
0:03:22 > 0:03:23And actually, you don't need to,
0:03:23 > 0:03:26you've got a fantastically proportioned kitchen in here.
0:03:26 > 0:03:29You can get everything in here. The kitchen is a bit tired.
0:03:29 > 0:03:32I'd think about taking it out, getting something sleek in -
0:03:32 > 0:03:34you could make a real difference doing that.
0:03:34 > 0:03:36There's a bit of damp there,
0:03:36 > 0:03:38that may be coming from a bathroom upstairs.
0:03:38 > 0:03:42I'll check that out. You want to check where the source is from that,
0:03:42 > 0:03:45for sure. But...I really like it.
0:03:50 > 0:03:54So far, everything here is peachy - and not just the decor.
0:03:54 > 0:03:56This was a Housing Association house,
0:03:56 > 0:03:59so it will more than likely have been well maintained.
0:03:59 > 0:04:02And the leak is just a result of the place lying empty.
0:04:04 > 0:04:06This has a lot going for it,
0:04:06 > 0:04:10but maybe I should check out upstairs before I get too excited.
0:04:11 > 0:04:15Upstairs, and, well, yes, the bathroom IS up here, so that leak,
0:04:15 > 0:04:17probably this is the source,
0:04:17 > 0:04:19but you would definitely want to have that confirmed.
0:04:19 > 0:04:22The bathroom is pretty tired, again serviceable,
0:04:22 > 0:04:25but it would make all the difference if you got a swanky one in there.
0:04:25 > 0:04:27Your first bedroom, good size,
0:04:27 > 0:04:30interesting paint job - green, blue, black -
0:04:30 > 0:04:32but the good thing about that is,
0:04:32 > 0:04:33you don't have all the wallpaper to pull off.
0:04:33 > 0:04:37The floorboards are bare, it really is a bit of a blank canvas.
0:04:37 > 0:04:40Through to your second bedroom - love it.
0:04:40 > 0:04:44It's a great-proportioned room.
0:04:44 > 0:04:46Again, you've got your double glazing and central heating,
0:04:46 > 0:04:48which is a real plus.
0:04:48 > 0:04:50And I don't know what this is...
0:04:51 > 0:04:55Let's see. You've got a cupboard with a pretty modern boiler,
0:04:55 > 0:04:59so that's good news. And the world's smallest radiator!
0:04:59 > 0:05:02So, maybe The Borrowers lived here in times gone past!
0:05:02 > 0:05:04Yeah, I love it.
0:05:04 > 0:05:07There's not much to say that you need to do.
0:05:07 > 0:05:09And you've got your textured wallpaper,
0:05:09 > 0:05:11which could be a nightmare to come off.
0:05:11 > 0:05:14But really, if your biggest problem is textured wallpaper, well,
0:05:14 > 0:05:18this could be a really good investment for someone.
0:05:18 > 0:05:24# Don't worry about a thing
0:05:24 > 0:05:29# Cos every little thing gonna be all right... #
0:05:29 > 0:05:33OK, saying everything's going to be all right might be tempting fate,
0:05:33 > 0:05:37but I can't see anything to worry me in here, so what about outside?
0:05:41 > 0:05:46Outside, and, well, this area here really lends itself to an extension.
0:05:46 > 0:05:49I can see the neighbouring properties have done exactly that.
0:05:49 > 0:05:52That said, the proportions of the room inside are so good,
0:05:52 > 0:05:55and it would really eat into your budget,
0:05:55 > 0:05:58you might want to think carefully about whether you want to spend money on that.
0:05:58 > 0:06:01But maybe a nice patio would be nice.
0:06:01 > 0:06:04And up the stairs, hello!
0:06:05 > 0:06:06This is a lovely garden.
0:06:06 > 0:06:09It's completely overgrown, but you can see past that.
0:06:09 > 0:06:11You just need to clear everything out.
0:06:11 > 0:06:14Quite handily, you've got a rear access, you can do just that.
0:06:14 > 0:06:17But look at that.
0:06:17 > 0:06:21Those Welsh rolling hills - absolutely stunning.
0:06:21 > 0:06:23Absolutely gorgeous.
0:06:23 > 0:06:29# Because you're gorgeous I'd do anything for you
0:06:30 > 0:06:34# Because you're gorgeous
0:06:34 > 0:06:38# I know you'll get me through. #
0:06:39 > 0:06:41The views might be gorgeous,
0:06:41 > 0:06:43but could the house be worth a pretty penny?
0:06:43 > 0:06:47Let's see what a local estate agent thought of the terrace,
0:06:47 > 0:06:50guided at £35,000-plus.
0:06:50 > 0:06:53It obviously needs work. It goes without saying.
0:06:53 > 0:06:57That being said, it's quite spacious for a two-bedroomed terrace.
0:06:57 > 0:07:02Sometimes you find the second bedroom is unusable, at best.
0:07:02 > 0:07:05But to be fair, I think with a bit of love and care,
0:07:05 > 0:07:07this could be a nice little home, yeah.
0:07:08 > 0:07:13The bare bones are all here, so, some TLC on the decor,
0:07:13 > 0:07:14and you could be good to go.
0:07:14 > 0:07:19But is there demand for properties like this in the area?
0:07:19 > 0:07:22So, there's definitely demand in and around the area from a lot of local
0:07:22 > 0:07:26people. You don't tend to find as many people from out of the area,
0:07:26 > 0:07:30purely down to, it is a bit of a distance to the local towns,
0:07:30 > 0:07:32and Cardiff and Swansea the other way.
0:07:32 > 0:07:35But it's definitely a rentable area, let's put it that way.
0:07:36 > 0:07:41Mmm - perhaps this is one for long-term investment?
0:07:41 > 0:07:44So, what kind of rental values could you expect to achieve?
0:07:45 > 0:07:47So, based on current market conditions,
0:07:47 > 0:07:49I would value the property for rent
0:07:49 > 0:07:52at £425 per calendar month.
0:07:52 > 0:07:54And what could the house be worth on the sales market?
0:07:56 > 0:08:00Based on current market conditions, I'd value the property at £70,000.
0:08:02 > 0:08:06Well, this property certainly has bags of potential.
0:08:06 > 0:08:09The rooms are a great size, the views are stunning,
0:08:09 > 0:08:12and it appears that only cosmetic work needs to be done.
0:08:12 > 0:08:16And therefore, it could be a quick turnaround and a terrific investment.
0:08:16 > 0:08:19Let's find out who agreed, when it went under the hammer.
0:08:21 > 0:08:23Final lot of this evening,
0:08:23 > 0:08:25two-bedroomed, mid-terraced house having spar-end elevations,
0:08:25 > 0:08:27there's pit slate roof covering,
0:08:27 > 0:08:30UPVC double glazing and gas central heating.
0:08:30 > 0:08:33OK, so, we're looking for an opening bid of 35,000.
0:08:33 > 0:08:34Do I see 35?
0:08:34 > 0:08:37You've seen all the others have been going, so do I see 35,000?
0:08:37 > 0:08:3935 is bid, thank you.
0:08:39 > 0:08:4135. 36, I'm looking for.
0:08:41 > 0:08:42Do I see 36,000?
0:08:42 > 0:08:4736, 36, 37, I'm looking for.
0:08:47 > 0:08:4837, 38?
0:08:48 > 0:08:5138 is bid, looking for 39?
0:08:51 > 0:08:5339, thank you, 40.
0:08:53 > 0:08:56Half. Half, OK - 39½.
0:08:56 > 0:08:5840, I'm looking for.
0:08:58 > 0:09:0040. 40 is bid.
0:09:00 > 0:09:02Half. 41?
0:09:02 > 0:09:0341?
0:09:03 > 0:09:0541.
0:09:05 > 0:09:06Half? Half.
0:09:06 > 0:09:0842? No.
0:09:08 > 0:09:10With you, sir, at 41½.
0:09:10 > 0:09:12With you at 41½, I'm going to sell at 41½.
0:09:15 > 0:09:17Sold, sir, to you, at 41½.
0:09:17 > 0:09:22The successful bid of £41,500 came from Colin, in the white shirt,
0:09:22 > 0:09:25who bought the property with business partners John and Shane.
0:09:26 > 0:09:29Hawk-eyed viewers may remember Colin and John,
0:09:29 > 0:09:31who previously appeared on the show,
0:09:31 > 0:09:34when I met them at another property in Bridgend.
0:09:35 > 0:09:38This time, I'm meeting Colin and John's son Shane,
0:09:38 > 0:09:41who is the third partner in the business,
0:09:41 > 0:09:44to hear all about their plans for their newest acquisition.
0:09:46 > 0:09:48- Colin, congratulations. - Martel, nice to meet you.
0:09:48 > 0:09:51- And Shane...- Hi, Martel. - Congratulations.
0:09:51 > 0:09:55Erm, so, this property, it seems like a great one to me, not a huge amount needing done to it.
0:09:55 > 0:09:59- Was that what attracted you?- Yeah.
0:09:59 > 0:10:03We looked at the properties, we viewed as many as we could,
0:10:03 > 0:10:07we select them, we select mid-terraced houses,
0:10:07 > 0:10:08the least to do to them,
0:10:08 > 0:10:10and we like a quick turnaround.
0:10:10 > 0:10:12So, the least we've got to put efforts into it,
0:10:12 > 0:10:14the quicker we can get a rental income back.
0:10:14 > 0:10:16Why do you select mid-terraces?
0:10:16 > 0:10:20Well, me and my father are the builders side of it, so,
0:10:20 > 0:10:24we know what we can do, and what's going to cost us more with the house.
0:10:24 > 0:10:27With a mid-terrace house, for the tenant, it's cheaper to heat,
0:10:27 > 0:10:30they're generally warmer, you get less problems with damp,
0:10:30 > 0:10:31and we haven't got gable ends.
0:10:31 > 0:10:34So, you know, we've got a niche, and this...
0:10:34 > 0:10:36The mid-terrace is our sort of niche, like.
0:10:40 > 0:10:43Now, these are guys who know what they want,
0:10:43 > 0:10:47and it seems to be working, as this is their fifth property together.
0:10:47 > 0:10:50Shane and dad John do the building work,
0:10:50 > 0:10:54and Colin is the numbers man and the genius behind their business model.
0:10:57 > 0:10:59Well, we have a desire to obtain
0:10:59 > 0:11:02a rental yield of 10% on the properties.
0:11:02 > 0:11:05So, we know what sort of prices we're looking at, then,
0:11:05 > 0:11:07and then we tailor the budget then,
0:11:07 > 0:11:09to ensure that we deliver that 10% yield.
0:11:09 > 0:11:12What are you thinking that you're going to do?
0:11:12 > 0:11:15Well, it's going to be a redecorate.
0:11:15 > 0:11:17We spruce it up, we like it clean, we like it tidy,
0:11:17 > 0:11:19we do put our pride into these houses.
0:11:19 > 0:11:22And we do want our tenants to enjoy
0:11:22 > 0:11:24their tenancy while they're with us, like.
0:11:24 > 0:11:27It sounds like you have a really nice balance between wanting that
0:11:27 > 0:11:2910% yield, but also wanting happy tenants.
0:11:29 > 0:11:33Oh, it's all about the tenants. It's like anything, isn't it?
0:11:33 > 0:11:35Your customer is always right.
0:11:35 > 0:11:38We've got to keep them happy, like I say, we have got standards,
0:11:38 > 0:11:40as everyone else has, and we like to achieve them,
0:11:40 > 0:11:43and we like to keep them there, if not even looking further in front,
0:11:43 > 0:11:45to accommodate the people living here, like.
0:11:45 > 0:11:49Yeah, lovely. What are you thinking for your budget?
0:11:49 > 0:11:53We've got probably about five grand to play with, to bring us in,
0:11:53 > 0:11:55that will probably give us a 12% yield.
0:11:55 > 0:11:57But I think we'll do it for a bit under that.
0:11:57 > 0:11:59I would say, you know, I'm the money man,
0:11:59 > 0:12:01I think we'll do it between us for 3,000-4,000.
0:12:01 > 0:12:05And Colin, I'm getting the sense you're the human calculator, so,
0:12:05 > 0:12:08what does that mean, what do you need to achieve for rent?
0:12:08 > 0:12:11We're looking at £450 per calendar month.
0:12:12 > 0:12:17As I'm sure Colin's aware, when it comes to property, time is money.
0:12:17 > 0:12:20So, they have a timescale of five weeks to get the work done,
0:12:20 > 0:12:23squeezing it in around their full-time jobs.
0:12:23 > 0:12:28Colin is an accountant, Shane is a plant operator, and his dad John,
0:12:28 > 0:12:32a builder. So, this property-developing dream team
0:12:32 > 0:12:33have no excuses.
0:12:33 > 0:12:36So, you're not going to be the buyers who say,
0:12:36 > 0:12:39"We didn't see the property." You always do your homework, don't you?
0:12:39 > 0:12:41We do. You've got to, you've got to do the backwork.
0:12:41 > 0:12:44I mean, we're all about this 10% yield, as we've mentioned.
0:12:44 > 0:12:46And you could buy the wrong one - if you blind buy,
0:12:46 > 0:12:48it could take that down straightaway, you've lost it.
0:12:48 > 0:12:51So, we're quite keen to keep the pace going, so,
0:12:51 > 0:12:54we don't want to make mistakes, silly mistakes,
0:12:54 > 0:12:57when it could be prevented by doing a little bit of legwork.
0:12:57 > 0:12:59Can't wait to see what you do with the place.
0:12:59 > 0:13:01- Colin - congratulations again. - Thank you, Martel.
0:13:01 > 0:13:03- Thanks, Shane. - Thank you, Martel.
0:13:03 > 0:13:07Well, Colin and Shane seem pretty confident in their purchase,
0:13:07 > 0:13:09and it's little wonder, given their experience.
0:13:09 > 0:13:11But I love the fact they also have a heart,
0:13:11 > 0:13:14and care what their tenants think, too.
0:13:14 > 0:13:16You can find out how they get on later in the show,
0:13:16 > 0:13:18and did they get that all-important 10% yield?
0:13:23 > 0:13:28DION: Back in 2016, I was POTTERING around in Stoke-on-Trent,
0:13:28 > 0:13:31and there was a huge offering at the auction.
0:13:31 > 0:13:35So, we're just a ten-minute walk away from the centre of Stoke,
0:13:35 > 0:13:37and Staffordshire University.
0:13:37 > 0:13:40The lot I'm here to see is this...
0:13:42 > 0:13:43..humongous building,
0:13:43 > 0:13:47and it's described in the auction catalogue as an "old mill".
0:13:47 > 0:13:51Now, that's not the most interesting point I'm going to tell you.
0:13:51 > 0:13:56Listen to this. The guide price - £50,000!
0:13:58 > 0:14:00Unfortunately, despite its size,
0:14:00 > 0:14:03which included the single-storey building at the end,
0:14:03 > 0:14:07the old mill was in pretty bad shape inside.
0:14:07 > 0:14:09- # What's the matter with the mill? - It done broke down
0:14:09 > 0:14:11- # The matter with the mill? - It done broke down
0:14:11 > 0:14:12# I can't get no grinding
0:14:12 > 0:14:16# Tell me what's the matter with the mill. #
0:14:16 > 0:14:19Still, plenty of space to play with.
0:14:22 > 0:14:25Coming into here, you've got a big old hallway going straight
0:14:25 > 0:14:28down there, but you've got a room off to the left,
0:14:28 > 0:14:30and more sectioned-off rooms here.
0:14:30 > 0:14:32These...
0:14:32 > 0:14:37all false walls, you want to knock all this down, start again.
0:14:37 > 0:14:39Yeah, it's not in great condition.
0:14:39 > 0:14:42It was an old mill, yes, but it's obviously been offices.
0:14:42 > 0:14:45But gosh, you've got to think to yourself,
0:14:45 > 0:14:47what could you do with all this space?
0:14:47 > 0:14:51What I would do, is I would strip it back to reveal your footprint -
0:14:51 > 0:14:54that's what I'd do. Let's explore just a little bit further.
0:14:57 > 0:15:02Further exploration revealed a large basement, which was also an office.
0:15:04 > 0:15:05On the floor I came in on,
0:15:05 > 0:15:09I finally found an intact staircase to take me to the top.
0:15:11 > 0:15:15Now, I do love it when an old industrial building like this
0:15:15 > 0:15:17is going to be given a new lease of life.
0:15:17 > 0:15:20I hope this one is going to be no exception.
0:15:20 > 0:15:23It is massive. Now, I'm up some more stairs,
0:15:23 > 0:15:25there's another corridor down there that goes even further,
0:15:25 > 0:15:27there's rooms off there.
0:15:27 > 0:15:30Two more big-size rooms there.
0:15:30 > 0:15:32One of them's got a shower in it, actually.
0:15:32 > 0:15:34The question is, what do you do with something this big?
0:15:34 > 0:15:36What are your options? Firstly,
0:15:36 > 0:15:39you could make it into individual apartments or flats -
0:15:39 > 0:15:41that would be one way you could go.
0:15:41 > 0:15:43The only downside to that is,
0:15:43 > 0:15:46there doesn't seem to be any off-road parking,
0:15:46 > 0:15:48any parking at all.
0:15:48 > 0:15:52On the other hand, don't forget that the University of Staffordshire is
0:15:52 > 0:15:55less than a mile away.
0:15:55 > 0:15:57Students in here I think is the way to go.
0:15:57 > 0:15:59You could go down the apartment route,
0:15:59 > 0:16:03you could go down the individual student accommodation route,
0:16:03 > 0:16:06or you could go down maybe the dormitory route.
0:16:06 > 0:16:09So, there's a shared kitchen, shared lounge.
0:16:09 > 0:16:11There's lots of options here.
0:16:11 > 0:16:14I think with the university being so close,
0:16:14 > 0:16:16I would choose to get students in here.
0:16:18 > 0:16:20I thought it was the most sensible option here,
0:16:20 > 0:16:23but you could go down the normal apartment route,
0:16:23 > 0:16:25or even back to offices.
0:16:26 > 0:16:29# Anything is possible
0:16:29 > 0:16:33- # Anything is possible - Just put your mind to it. #
0:16:34 > 0:16:38And the other place where anything is possible is at the auction room.
0:16:38 > 0:16:41But could this gigantic building really sell
0:16:41 > 0:16:44for anything near that guide price of 50 grand?
0:16:44 > 0:16:46Was that possible?
0:16:46 > 0:16:49A very substantial building, this,
0:16:49 > 0:16:524,652 square feet, start me at 40.
0:16:52 > 0:16:53Giveaway money, can't even buy the bricks.
0:16:53 > 0:16:5540 I'm bid. 41.
0:16:55 > 0:16:5641 from you.
0:16:56 > 0:16:58Are you bidding?
0:16:58 > 0:16:5942, 43,
0:16:59 > 0:17:0344, 45, 46, 47...
0:17:03 > 0:17:0748. 48. 49.
0:17:07 > 0:17:0950. 51.
0:17:10 > 0:17:13Are you sure? £50,000, then, is on my right.
0:17:13 > 0:17:1451 anywhere else?
0:17:14 > 0:17:1851, 52, 53, 54,
0:17:18 > 0:17:2055, 56,
0:17:20 > 0:17:2457, 58, 59...
0:17:24 > 0:17:26£58,000 is over here.
0:17:26 > 0:17:2859 anywhere else? 58, five, 59...
0:17:28 > 0:17:3159 five?
0:17:31 > 0:17:3359 now with you on my right for the first.
0:17:33 > 0:17:3459 for the second.
0:17:34 > 0:17:37It's selling, ladies and gentlemen. Giveaway money, this.
0:17:37 > 0:17:39For the third and final time.
0:17:41 > 0:17:43Yours, sir, at £59,000.
0:17:43 > 0:17:45Well done. Bidder 114.
0:17:45 > 0:17:50Well, who'd have thought 59 grand would clinch this huge building?
0:17:50 > 0:17:54It was bought by Ricky, a successful musician and property developer.
0:17:54 > 0:17:58In this project he was joined by his business partner Yann.
0:17:58 > 0:18:01But they bought the property back in 2014,
0:18:01 > 0:18:03so I had to begin by asking,
0:18:03 > 0:18:06what had been happening for the last two years?
0:18:06 > 0:18:08Yann, nice to meet you.
0:18:08 > 0:18:10- Nice to meet you.- Ricky, nice to meet you too, sir.
0:18:10 > 0:18:11- Nice to meet you.- Congratulations.
0:18:11 > 0:18:16So, back in 2014, what's taken you so long to bring it to development?
0:18:16 > 0:18:18Planning, really. We just wasn't in any major rush.
0:18:18 > 0:18:20We really went through the design process,
0:18:20 > 0:18:23then taking our time making sure we were happy with it.
0:18:23 > 0:18:27And then we just put it in with the planners and we had quite a bit to do elsewhere.
0:18:27 > 0:18:30So we weren't in any major rush.
0:18:30 > 0:18:32- So we just did the planning. - OK.
0:18:32 > 0:18:35So, now we're in a position where we want to crack on.
0:18:35 > 0:18:37So, how do you two know each other?
0:18:37 > 0:18:40Well, I'm a developer.
0:18:40 > 0:18:44I ran several hotels in Eastern Europe.
0:18:44 > 0:18:45I do many things.
0:18:45 > 0:18:49And I've known Ricky's father for 30 years.
0:18:49 > 0:18:51I've known Ricky since he was a little boy.
0:18:51 > 0:18:53- In nappies?- Yes. - Have you got any photographs?
0:18:53 > 0:18:56Yes! No, no, no. But I remember him well.
0:18:56 > 0:18:58- OK.- He was into everything.
0:18:58 > 0:19:01- OK.- Even as a little boy, he wouldn't stand still.
0:19:01 > 0:19:05# I'm waiting for it That green light, I want it. #
0:19:07 > 0:19:10Two years on and with the green light for the flats,
0:19:10 > 0:19:12what were they planning to do with them?
0:19:12 > 0:19:17Going forward, we can either sell them to the open market,
0:19:17 > 0:19:22or it's only 0.9 miles away from Staffordshire University.
0:19:22 > 0:19:26So, yeah, so we've been in touch with them and they're interested.
0:19:26 > 0:19:27It's in their catchment zone.
0:19:27 > 0:19:30But, yeah, it's just something that just going forward,
0:19:30 > 0:19:35once the development is in its progressed stages we will
0:19:35 > 0:19:38approach them and see what angle we want to take.
0:19:38 > 0:19:39So, what's your budget?
0:19:39 > 0:19:46I'm envisaging a development cost in the region of about £450,000.
0:19:46 > 0:19:49With that in mind, how long is it going to take you to turn this around?
0:19:49 > 0:19:53Well, I'm envisaging in the region of about 12 months.
0:19:55 > 0:19:58It seemed like a healthy budget and timescale.
0:19:58 > 0:20:00But Yann had a trick up his sleeve
0:20:00 > 0:20:04to help young aspiring tradespeople get started.
0:20:04 > 0:20:06I invented a virtual reality tool,
0:20:06 > 0:20:08which has 18 worldwide patents,
0:20:08 > 0:20:14which actually simulates through a tool all the jobs you do in this
0:20:14 > 0:20:18building. So the student, when he gets a technical certificate,
0:20:18 > 0:20:21will simulate all the jobs like bathroom, kitchens and so on.
0:20:21 > 0:20:24Electricians will do all the wiring.
0:20:24 > 0:20:27When they get it right they will come here,
0:20:27 > 0:20:29do their NVQ and get a job.
0:20:29 > 0:20:33Each flat, the student will do an exam on it so he'll be supervised
0:20:33 > 0:20:35on every action, everything,
0:20:35 > 0:20:38because he will build his portfolio for his exam.
0:20:38 > 0:20:42So you will see that all the flats will be absolutely tiptop quality.
0:20:43 > 0:20:46The trainees would also be working alongside professionals,
0:20:46 > 0:20:49so they would get real-world experience too.
0:20:51 > 0:20:54But when we came back a year later, they'd already gone over their
0:20:54 > 0:20:59timescale and run into many complex issues.
0:20:59 > 0:21:03# But here in the real world
0:21:03 > 0:21:06# It's not that easy at all
0:21:09 > 0:21:17# Cos when hearts get broken It's real tears that fall. #
0:21:19 > 0:21:22They have gone down the route of student flats,
0:21:22 > 0:21:27creating 11 apartments with the advice of the local university on spec.
0:21:27 > 0:21:32It wasn't unrealistic to imagine students living here sometime soon
0:21:32 > 0:21:34but there was still a lot of work ahead.
0:21:34 > 0:21:38Ricky and Yann had already been through a long building process.
0:21:38 > 0:21:43Stage one would have been to carry out an intrusive asbestos survey,
0:21:43 > 0:21:46remove it by a licensed contractor,
0:21:46 > 0:21:50so that would enable then phase two, which would have been the actual
0:21:50 > 0:21:53complete strip-out of the entire floors and walls
0:21:53 > 0:21:55so our engineers and architects
0:21:55 > 0:21:58could carry out full structural surveys.
0:21:58 > 0:22:02And then effectively that enabled us to go out to tender with contractors
0:22:02 > 0:22:05and get the most competitive price and the right contractor as well.
0:22:05 > 0:22:07And that took a bit of time.
0:22:07 > 0:22:10And then it's just literally just taken us to this point where we are
0:22:10 > 0:22:14in phase three, which is creating the flats as you see them so far.
0:22:14 > 0:22:17While the flats were virtually finished,
0:22:17 > 0:22:20some of the students were doing some finishes virtually
0:22:20 > 0:22:22via Yann's training programme.
0:22:22 > 0:22:25# Virtually happy. #
0:22:29 > 0:22:33As you can see, this gentleman has never done it in his life.
0:22:33 > 0:22:37He's already connecting a hand wash basin, he's soldering,
0:22:37 > 0:22:39he's doing all these jobs,
0:22:39 > 0:22:43and by the time he's finished, we might offer him a job.
0:22:43 > 0:22:47# Back to life Back to reality
0:22:47 > 0:22:51# Back to life Back to reality. #
0:22:53 > 0:22:54Back in the real world,
0:22:54 > 0:22:59it was important to see how that 450 grand budget stacked up.
0:23:02 > 0:23:06We've spent so far approximately half, or just over half.
0:23:06 > 0:23:11There's obviously the final finishes to go in and so on and so forth.
0:23:11 > 0:23:15But, yeah, we're on target.
0:23:15 > 0:23:19# Back to life Back to the present time
0:23:19 > 0:23:24# Back from a fantasy, yes
0:23:24 > 0:23:27# Back to reality. #
0:23:27 > 0:23:31This project was not just creating accommodation for students,
0:23:31 > 0:23:36it had also trained 35 students under expert supervision,
0:23:36 > 0:23:41who hopefully would now be joining a new generation of skilled tradespeople.
0:23:41 > 0:23:45It was a huge undertaking and when we left Yann and Ricky
0:23:45 > 0:23:47they thought they were about ten weeks away from completion.
0:23:49 > 0:23:52Join us later to see if they were right
0:23:52 > 0:23:55and what this old mill looks like now.
0:23:58 > 0:24:00MARTIN: Still to come, this two-bed mid-terrace
0:24:00 > 0:24:04in Merseyside is one for the not-so green-fingered amongst us.
0:24:04 > 0:24:09It's definitely a low-maintenance garden, that's for sure.
0:24:09 > 0:24:11DION: And, we'll find out if Ricky
0:24:11 > 0:24:13was a high-maintenance business partner.
0:24:13 > 0:24:16When he started working for me, he complained.
0:24:21 > 0:24:24MARTEL: It's time to head back to Abertysswg,
0:24:24 > 0:24:26where I saw this pebble-dashed mid-terrace
0:24:26 > 0:24:29guided at £35,000 plus.
0:24:29 > 0:24:34It was in need of redecoration, but not necessarily reconfiguration.
0:24:34 > 0:24:36I'm a big fan of open-plan living,
0:24:36 > 0:24:38so you come in through into your kitchen from the living room.
0:24:38 > 0:24:41You could knock this down, but it's not a partition wall.
0:24:41 > 0:24:43It would be tricky, and actually you don't need to.
0:24:43 > 0:24:46You've got a fantastic proportioned kitchen in here.
0:24:46 > 0:24:51Ah, there's a bit of damp there that may be coming from a bathroom upstairs.
0:24:51 > 0:24:54And once the source of the leak was fixed,
0:24:54 > 0:24:56there wouldn't be a lot to drain your funds here.
0:24:56 > 0:25:00The suite and tiles were potentially salvageable,
0:25:00 > 0:25:01and, like the rest of the house,
0:25:01 > 0:25:04the bedrooms just needed some fresh decor and flooring,
0:25:04 > 0:25:08which is just what Colin and Shane had planned to do.
0:25:08 > 0:25:11Colin is an accountant and Shane works in construction,
0:25:11 > 0:25:13as does his dad John.
0:25:13 > 0:25:17All three teamed up to do property renovations and have a few rental
0:25:17 > 0:25:19properties in their portfolio.
0:25:19 > 0:25:23With this latest one, they were going to stick to their tried and tested formula.
0:25:23 > 0:25:25We like it clean, we like it tidy,
0:25:25 > 0:25:27we do put our pride into these houses,
0:25:27 > 0:25:29and we do want our tenants to enjoy
0:25:29 > 0:25:32their tenancy while they're with us, like.
0:25:32 > 0:25:35It sounds like you have a really nice balance between wanting that 10% yield
0:25:35 > 0:25:39- but also wanting happy tenants. - Oh, it's all about the tenants.
0:25:39 > 0:25:41Your customer is always right.
0:25:41 > 0:25:43The trio had a budget of five grand
0:25:43 > 0:25:47to renovate the house and a timescale of five weeks,
0:25:47 > 0:25:52so we've returned 12 weeks later to see how the house is looking.
0:25:56 > 0:25:58# Exciting
0:25:58 > 0:26:01# She's so exciting to me
0:26:01 > 0:26:04# She's fresh
0:26:04 > 0:26:06# Exciting
0:26:06 > 0:26:10# She's so inviting to me, yeah. #
0:26:10 > 0:26:13With new carpets, a kitchen, and a complete redecoration,
0:26:13 > 0:26:15the fresh makeover is complete.
0:26:18 > 0:26:21There are no longer any signs of damp coming in from the bathroom.
0:26:21 > 0:26:23Speaking of which...
0:26:25 > 0:26:26..it's had a fresh coat of paint.
0:26:29 > 0:26:30But that's all it really needed,
0:26:30 > 0:26:34especially as Colin and Shane are looking to keep the spend low
0:26:34 > 0:26:37and the yield high in this rental property.
0:26:38 > 0:26:42With the neutral colour scheme, the bedrooms feel even bigger.
0:26:53 > 0:26:56Out the back, that overgrown jungle has gone,
0:26:56 > 0:26:59having been replaced with a freshly cut lawn.
0:27:00 > 0:27:02Although almost two months behind schedule,
0:27:02 > 0:27:07Colin, Shane and Shane's dad John must have put in a fair amount of hours to get this house looking...
0:27:07 > 0:27:10# Fresh as a summer breeze. #
0:27:10 > 0:27:13It's been a joint effort between the three of us.
0:27:13 > 0:27:17I mean, my father undoubtedly is the mastermind of it all and he leads the way,
0:27:17 > 0:27:20so we kind of do as he says.
0:27:20 > 0:27:22But me and Colin have done extensive labouring.
0:27:22 > 0:27:25We have had help. We've had one of my father's boys in
0:27:25 > 0:27:28to help us with the heavy humping and lumping,
0:27:28 > 0:27:31- and we've all kind of just mucked in together, haven't we?- Indeed.
0:27:31 > 0:27:32And equally put our efforts in.
0:27:32 > 0:27:37Johnny's the master builder here and Shane was very good on the garden,
0:27:37 > 0:27:39so we had our own little fortes.
0:27:39 > 0:27:44My main job was just mashing the tea and keeping them all in food,
0:27:44 > 0:27:46keeping everybody happy here
0:27:46 > 0:27:49and having a bit of banter with the guys!
0:27:49 > 0:27:52John, which is Shane's father, usually ends up shouting at us
0:27:52 > 0:27:54because we have a bit too much of a laugh
0:27:54 > 0:27:58- on the job sometimes.- He's the party pooper out of the three of us really, isn't he?
0:27:58 > 0:28:00He spoils our fun. He's too serious.
0:28:02 > 0:28:04# So serious. #
0:28:08 > 0:28:12Mr Serious John got seriously hands-on in the kitchen.
0:28:13 > 0:28:17We initially thought that we weren't going to do the kitchen
0:28:17 > 0:28:20but I went out the back one day working on the garden.
0:28:20 > 0:28:22When I came in the kitchen had been razed to the floor.
0:28:22 > 0:28:26Johnny put a sledge to it cos he thought it was a bit rotten.
0:28:26 > 0:28:29I was a bit perturbed about that
0:28:29 > 0:28:33because it was going to cost us an extensive amount of money.
0:28:33 > 0:28:36But it was too late then, and he makes the decisions,
0:28:36 > 0:28:39so we had a few words about it, but it was too late.
0:28:39 > 0:28:40We just had to crack on.
0:28:40 > 0:28:42But I think it was the right decision now, isn't it?
0:28:42 > 0:28:45In hindsight, it was the right decision, but as the finance person,
0:28:45 > 0:28:48I'm always trying to cut corners and keep the costs low.
0:28:48 > 0:28:52But did taking a sledgehammer to the old kitchen also make
0:28:52 > 0:28:55a serious dent in their five-grand budget?
0:28:55 > 0:28:58We ended up spending 5,970,
0:28:58 > 0:29:03so it gives us a total spend of just over £50,000.
0:29:03 > 0:29:08Based on what I think the rental will command for this area,
0:29:08 > 0:29:11we're still looking at a yield of about 10.76%.
0:29:11 > 0:29:15Well, we did say Colin was a human calculator, so he's added the fees
0:29:15 > 0:29:18to the cost of the purchase and the work,
0:29:18 > 0:29:22coming in at just under £51,000.
0:29:22 > 0:29:26So, time to find out if two local estate agents' valuations
0:29:26 > 0:29:28will make his numbers stack up.
0:29:28 > 0:29:32First, what do they think of the mid-terrace and the work?
0:29:32 > 0:29:37The main selling points are the rooms are nice and spacious,
0:29:37 > 0:29:40nice bathroom upstairs, nice family kitchen,
0:29:40 > 0:29:43enough to put a table and chairs in, and a lovely back garden.
0:29:43 > 0:29:45It's been done really nicely.
0:29:45 > 0:29:49You know, neutral colours, modernised and very well done.
0:29:49 > 0:29:52The demand in the area for properties like this at the moment is good,
0:29:52 > 0:29:55especially rentals at the moment.
0:29:55 > 0:29:57There's not that many around.
0:29:57 > 0:30:01Does a lack of rental properties on the market mean this house could
0:30:01 > 0:30:05achieve moneyman Colin's ideal 10% yield,
0:30:05 > 0:30:08which would be £425 per month?
0:30:08 > 0:30:13I think this property in the condition would rent for £375-395
0:30:13 > 0:30:16per calendar month.
0:30:16 > 0:30:18In the rental market, I think this property could bring
0:30:18 > 0:30:20£430 per calendar month.
0:30:20 > 0:30:22Well, that's not too bad.
0:30:22 > 0:30:26I mean, we, initially, sort of, seen 450, so, anyway,
0:30:26 > 0:30:29I mean if we get over 400, I think we're happy anyway.
0:30:29 > 0:30:32The house is part of a rental portfolio,
0:30:32 > 0:30:34so it won't be sold in the short-term.
0:30:34 > 0:30:39But the agents think it could go on the open market for between £75,000
0:30:39 > 0:30:41and £85,000.
0:30:41 > 0:30:45So, with a potential 34 grand increase in value,
0:30:45 > 0:30:47this has been a success.
0:30:48 > 0:30:50I think this experience has been very fulfilling.
0:30:51 > 0:30:54I've been involved in construction with my dad as a boy growing up,
0:30:54 > 0:30:56although I feel this is a bit different,
0:30:56 > 0:31:00it's a bit more serious because I put my own investment into it
0:31:00 > 0:31:03and this is the first time I've collaborated with Colin
0:31:03 > 0:31:04and my father as a group.
0:31:04 > 0:31:07I think we make a really good team and we should have a bright future
0:31:07 > 0:31:09ahead of us.
0:31:11 > 0:31:16Bootle is a town on Merseyside just a few miles north of Liverpool.
0:31:17 > 0:31:20It's got good amenities on its doorstep
0:31:20 > 0:31:22and good transport links into the city itself,
0:31:22 > 0:31:24so it's very handy for commuters.
0:31:24 > 0:31:26There are plans to regenerate the area
0:31:26 > 0:31:29and plenty of new-build properties popping up.
0:31:29 > 0:31:32So, hopefully, that means there will be some property bargains
0:31:32 > 0:31:34to be had.
0:31:34 > 0:31:36Let's see if today's auction lot fits the bill.
0:31:36 > 0:31:40Well, when you're thinking about buying in an area,
0:31:40 > 0:31:43it's good to look around and if you see things like this
0:31:43 > 0:31:47brand-new housing development, that's got to be good news.
0:31:47 > 0:31:51Especially when the property that I'm here to see had a guide price
0:31:51 > 0:31:53of £30,000-35,000.
0:31:53 > 0:31:56Yeah, it's a two-bed mid-terrace.
0:31:56 > 0:31:58What's it going to be like inside?
0:32:02 > 0:32:04OK, so what have we got?
0:32:04 > 0:32:07Stairs up to your bedrooms there and then through into your front
0:32:07 > 0:32:09sitting room. Not a bad size space.
0:32:09 > 0:32:11I suppose you've got an open fire there.
0:32:12 > 0:32:14Yeah, nothing
0:32:14 > 0:32:15too bad to report.
0:32:15 > 0:32:19Now, I know I sound a bit like a broken record here but, honestly,
0:32:19 > 0:32:23things like this, get rid of this wall, open up this space.
0:32:23 > 0:32:25Making it open-plan is the only way to go.
0:32:25 > 0:32:27I feel like I've said that a thousand times before.
0:32:27 > 0:32:29Meanwhile, over here, the kitchen.
0:32:29 > 0:32:31This is open-plan. We like that.
0:32:32 > 0:32:35Of course, you need to comply with building regulations
0:32:35 > 0:32:39before you knock down any walls or make any structural changes,
0:32:39 > 0:32:42and you need to apply for building regulations approval.
0:32:42 > 0:32:45# I'm wide open... #
0:32:45 > 0:32:49And while I might like open-plan, some people don't,
0:32:49 > 0:32:51preferring a separate room they can keep tidy,
0:32:51 > 0:32:54or can hear the telly without the kitchen clatter
0:32:54 > 0:32:56of machines or crockery.
0:32:56 > 0:32:58So, you pay your money and you take your choice.
0:32:58 > 0:33:00Open-plan just happens to be mine.
0:33:02 > 0:33:03As a final thought,
0:33:03 > 0:33:06it's worth thinking about how it affects your escape
0:33:06 > 0:33:09in the case of fire, especially around staircases.
0:33:12 > 0:33:13So, upstairs it's all a bit narrow.
0:33:13 > 0:33:15I don't know what you could do about that.
0:33:15 > 0:33:17I think you're going to possibly have to live with it.
0:33:17 > 0:33:20But a good size bathroom, and it is at least upstairs,
0:33:20 > 0:33:22which is good news.
0:33:22 > 0:33:23And then two bedrooms.
0:33:23 > 0:33:25You've got this room here.
0:33:25 > 0:33:26It's relatively small.
0:33:28 > 0:33:30But not in too bad condition.
0:33:30 > 0:33:33Sadly that can't quite be said about the front one.
0:33:33 > 0:33:37It's a good size, yes, but on this front wall,
0:33:37 > 0:33:39a bit of cracking going on.
0:33:39 > 0:33:42But I'm more concerned with this, which is actually
0:33:42 > 0:33:44definitely an area with damp.
0:33:44 > 0:33:46It's probably something simple.
0:33:46 > 0:33:48It's all along the front there,
0:33:48 > 0:33:50which would lead me to believe it's something to do with the gutters,
0:33:50 > 0:33:54or maybe that bottom part of the roof just needs sorting out.
0:33:54 > 0:33:56But it's the sort of thing you do need to address before it starts to
0:33:56 > 0:33:58damage the fabric of the building.
0:33:58 > 0:34:00I'm not going to let a little bit of water ingress
0:34:00 > 0:34:04dampen my spirits for this property.
0:34:04 > 0:34:07It's got what seems to be a relatively new boiler,
0:34:07 > 0:34:10which looks like it was moved from this back bedroom
0:34:10 > 0:34:12into the cupboard in the front bedroom.
0:34:15 > 0:34:18It's wise to check the positioning of the boiler and its flue,
0:34:18 > 0:34:22in this case on the roof, that it complies with building regulations.
0:34:22 > 0:34:23The house is also fully double glazed,
0:34:23 > 0:34:26so there really is not much else to do here.
0:34:30 > 0:34:32So, at the back of the property, this little courtyard area.
0:34:32 > 0:34:36It's definitely a low-maintenance garden, that's for sure.
0:34:36 > 0:34:37Just tend those weeds.
0:34:37 > 0:34:40But I'm noticing that neighbouring properties
0:34:40 > 0:34:42have built some monstrous extension.
0:34:42 > 0:34:45It does create a rather unpleasant kind of wall there,
0:34:45 > 0:34:47which is not that nice to look at.
0:34:47 > 0:34:49But the precedent is set now, perhaps,
0:34:49 > 0:34:52to do a similar extension with this property.
0:34:52 > 0:34:55You'd have to look at what effect that had on the rent you might get,
0:34:55 > 0:34:58or just the quality of improvement of life by doing it.
0:34:58 > 0:35:00The cost might mean it's not worth it.
0:35:00 > 0:35:02But it's definitely an option.
0:35:02 > 0:35:04To see if going for an extension would be
0:35:04 > 0:35:07financially viable in this area,
0:35:07 > 0:35:09we've asked along a local property expert.
0:35:09 > 0:35:13# When I need inspiration, when I need advice
0:35:15 > 0:35:17# I turn to you... #
0:35:17 > 0:35:21As far as extending this house would be concerned,
0:35:21 > 0:35:24and spending the extra money and investing further into it,
0:35:24 > 0:35:27I would say that that's not really a sensible idea here.
0:35:27 > 0:35:30You could spend a lot of money extending the property,
0:35:30 > 0:35:32and that definitely wouldn't reflect,
0:35:32 > 0:35:35critically, in the money that it would bring you back in
0:35:35 > 0:35:36by way of sales or by lettings.
0:35:36 > 0:35:39So I wouldn't spend more than you need to spend here.
0:35:39 > 0:35:41Get it done, get it let, get your money back in.
0:35:41 > 0:35:43So, from a rental perspective,
0:35:43 > 0:35:46you wouldn't find any difficulty in finding a tenant
0:35:46 > 0:35:50who would pay £425 per calendar month.
0:35:50 > 0:35:52A yearly income of £5,100
0:35:52 > 0:35:56on a property guided at £30,000 to £35,000
0:35:56 > 0:35:58seems like a good investment to me.
0:35:58 > 0:36:00What if the plan was to sell on?
0:36:02 > 0:36:04The market's a little bit quirky.
0:36:05 > 0:36:07And I think it would only appeal to a buy-to-let-er.
0:36:08 > 0:36:13But I think, made to look nice, plopped back on the open market,
0:36:13 > 0:36:16perhaps somewhere approaching 60,000 would be the sort of figure that
0:36:16 > 0:36:17you'd end up with.
0:36:23 > 0:36:25Well, really nothing wrong with this property.
0:36:25 > 0:36:28And for that guide price, I don't think you can go too far wrong.
0:36:28 > 0:36:30Let's see who agreed when it went under the hammer.
0:36:34 > 0:36:36It's a two-bed mid-terrace house.
0:36:36 > 0:36:40You've got the double glazing and central heating, as you can see.
0:36:40 > 0:36:42Where would you like to start the bidding on this one,
0:36:42 > 0:36:44ladies and gentlemen? The guide's 30 to 35.
0:36:44 > 0:36:46Let's see the lower end of that, shall we?
0:36:46 > 0:36:4830?
0:36:48 > 0:36:51Thank you very much. 30 I have, and I saw you, as well.
0:36:51 > 0:36:5331. 32? 33?
0:36:54 > 0:36:56What do you want to do? Make it a half for me?
0:36:56 > 0:36:57I've lost you now. 32½?
0:36:57 > 0:36:5832½.
0:36:58 > 0:37:0033?
0:37:00 > 0:37:01And another half?
0:37:01 > 0:37:03No more? OK. 33.
0:37:03 > 0:37:04Anybody else at 33½?
0:37:06 > 0:37:09OK, right, then. Row one is where we're at.
0:37:09 > 0:37:12£33,000 for the first time.
0:37:12 > 0:37:13£33,000 for the second time.
0:37:13 > 0:37:15You're going to lose it. Anybody else here for this?
0:37:15 > 0:37:17I'll take a quarter if you're dead quick.
0:37:17 > 0:37:18The same applies to anyone else.
0:37:18 > 0:37:22If not, for the third and final time, all done?
0:37:22 > 0:37:24And you got it, sir.
0:37:24 > 0:37:25Well done. Sold.
0:37:26 > 0:37:29The successful bid of 33,000 was made by John.
0:37:31 > 0:37:35But the actual purchaser of this property was his wife, Andrea,
0:37:35 > 0:37:37who came along with her daughter, Harriet.
0:37:37 > 0:37:40I met up with them to find out about their plans for this property.
0:37:44 > 0:37:45Andrea, Harriet, great to see you both.
0:37:45 > 0:37:47- Hello.- Congratulations.
0:37:47 > 0:37:50- Thank you.- Tell me why you wanted to buy this place.
0:37:50 > 0:37:51Well, I live down south,
0:37:51 > 0:37:53and my husband and I just bought our first house last year.
0:37:53 > 0:37:56- Oh, great.- And we kind of liked doing that, and we thought,
0:37:56 > 0:38:00why not get one as an investment opportunity?
0:38:00 > 0:38:04And my mum was kind enough to be able to help.
0:38:04 > 0:38:06I'm from Liverpool, Mum lives around the corner.
0:38:06 > 0:38:10- Oh, brilliant.- So we could buy a property here, then we could help
0:38:10 > 0:38:13- look after it.- Yeah, for sure. It just seems amazing, doesn't it?
0:38:13 > 0:38:19I mean, you know, 2017, here we are at £33,000 for a really nice house.
0:38:19 > 0:38:22We visited 25 properties before the auction.
0:38:22 > 0:38:26- Wow.- And this one was top of our list.
0:38:28 > 0:38:29Because it's a good little house.
0:38:29 > 0:38:32There's not really anything that needs doing to it.
0:38:32 > 0:38:34And it's in a nice location.
0:38:34 > 0:38:37And I think people misunderstand Bootle.
0:38:37 > 0:38:39My husband was born and bred in Bootle.
0:38:39 > 0:38:41- So was my dad!- And...
0:38:41 > 0:38:44It was... I think that's why it wasn't bid against.
0:38:45 > 0:38:48Right. So what's your involvement in all of this?
0:38:48 > 0:38:52- I haven't quite pieced it together. - I'm the funds.
0:38:52 > 0:38:53- Right.- Funder.
0:38:53 > 0:38:55I had an inheritance.
0:38:55 > 0:38:59She also looked at the houses and went to the auction and bought it.
0:38:59 > 0:39:01And I'll be managing the properties as well.
0:39:01 > 0:39:02Oh, you will? OK.
0:39:02 > 0:39:05So is the idea then that you bought it to do up and rent out?
0:39:05 > 0:39:08- Is that the plan?- Yeah.- But it's a bit of a property nest egg for you?
0:39:08 > 0:39:11- Yeah.- And delivering some good returns in the meantime?
0:39:11 > 0:39:13- Hopefully.- That's very generous of you.
0:39:13 > 0:39:15Thank you.
0:39:15 > 0:39:18It was very, very nice of you.
0:39:18 > 0:39:20So what do you both do when you're not doing this?
0:39:20 > 0:39:22- What's your...?- Well, I'm retired.
0:39:22 > 0:39:23You're retired? OK. Yes.
0:39:23 > 0:39:25- What did you used to do?- I was a GP.
0:39:25 > 0:39:27- You were a GP? - For 25 years.- Fantastic.
0:39:27 > 0:39:30- What about you, Harriet? - I do two different things.
0:39:30 > 0:39:32I do business management during the week.
0:39:32 > 0:39:35Then, at the weekend, I'm a skydiving instructor.
0:39:35 > 0:39:36A skydiving instructor?!
0:39:36 > 0:39:38- Yeah.- Wow!
0:39:38 > 0:39:41Teaching people to kind of skydive out of planes and things?
0:39:41 > 0:39:43Yeah, so I'm a solo instructor.
0:39:43 > 0:39:44So if they want to learn to do it by themselves.
0:39:44 > 0:39:46So I wouldn't do a tandem
0:39:46 > 0:39:48where they're attached to me, or anything like that.
0:39:48 > 0:39:50It's just if they want to do it themselves.
0:39:50 > 0:39:52Wow. How did you get into that?
0:39:52 > 0:39:55Just really random. Somebody asked me to do one when I was 17,
0:39:55 > 0:39:57and I thought, "OK."
0:39:57 > 0:39:59Did one and I haven't really stopped since.
0:39:59 > 0:40:00How many skydives have you done?
0:40:00 > 0:40:02About 1,100 now.
0:40:02 > 0:40:041,100? 1,100 skydives?
0:40:04 > 0:40:07- Yeah.- What's the highest you've jumped from?
0:40:07 > 0:40:09About 22,000 feet, I think it was.
0:40:09 > 0:40:11- Wow!- Yeah. - So that has quite a lot of freefall?
0:40:11 > 0:40:13Yeah, quite a lot of freefall.
0:40:13 > 0:40:16But the normal height is around about 14,000.
0:40:16 > 0:40:18So what kind of ages of people do you teach?
0:40:18 > 0:40:19Oh, loads.
0:40:19 > 0:40:21I get loads of cadets at the moment.
0:40:21 > 0:40:24So I have 16 and 17-year-old, like, Army cadets...
0:40:24 > 0:40:26- Oh, right.- ..or Navy cadets, things like that.
0:40:26 > 0:40:29But it ranges all the way through to people in their 50s.
0:40:29 > 0:40:32And what's the appeal to make you do it 1,100 times?
0:40:32 > 0:40:34I don't know. It's just...
0:40:34 > 0:40:36There's nothing like it. There really isn't.
0:40:38 > 0:40:40# I just want to fly
0:40:40 > 0:40:43# Put your arms around me, baby
0:40:43 > 0:40:46# Put your arms around me, baby, yeah... #
0:40:46 > 0:40:51High-flying Harriet doesn't have her head in the clouds when it comes to
0:40:51 > 0:40:53the work required in the house.
0:40:53 > 0:40:57But mum Andrea might still bring her back down to earth
0:40:57 > 0:40:59on one important point.
0:41:01 > 0:41:05Well, we're having a bit of a conflict about a wall.
0:41:05 > 0:41:07Mum thinks one needs knocking down.
0:41:07 > 0:41:08Which one? That one?
0:41:08 > 0:41:10- Yeah, that one between... - The obvious wall to get rid of?
0:41:10 > 0:41:12Yeah. Well, you say that.
0:41:12 > 0:41:13I do say that, yeah!
0:41:14 > 0:41:17I don't know. I'm not sure whether it's worth it.
0:41:17 > 0:41:18- Yeah.- OK.
0:41:18 > 0:41:20We'll have a think about that, then.
0:41:20 > 0:41:22But, aside from that, you know,
0:41:22 > 0:41:24mainly just decorating and probably a nice new kitchen.
0:41:24 > 0:41:26- Kitchen.- Yeah.- Bathroom.- Yeah.
0:41:26 > 0:41:28Are there no changes upstairs particularly?
0:41:28 > 0:41:31At least the bathroom and the loo is upstairs,
0:41:31 > 0:41:33- which is good. - That's right, it is, yeah.
0:41:33 > 0:41:36So what's the budget for the work?
0:41:36 > 0:41:39Depending on what we're doing, about 3,000 to 4,000.
0:41:39 > 0:41:41OK. And who will do the work?
0:41:41 > 0:41:43- My husband.- OK.
0:41:43 > 0:41:46- And what's the timescale?- About eight weeks, I think, isn't it?
0:41:46 > 0:41:49Two to three months, something like that.
0:41:49 > 0:41:50Fantastic. Well, listen, congratulations.
0:41:50 > 0:41:54Good luck with it. Thank you. I look forward to seeing how you get on.
0:41:54 > 0:41:55- OK, thanks very much. - Thank you.
0:41:57 > 0:41:59Well, with help from mum Andrea,
0:41:59 > 0:42:02Harriet's ended up with a really great property here.
0:42:02 > 0:42:06And will that wall between the lounge and dining room remain
0:42:06 > 0:42:07when we come back?
0:42:07 > 0:42:09You can find out later in the show.
0:42:14 > 0:42:17Well, we've seen one of our properties wrapped up quite neatly.
0:42:17 > 0:42:20- But what about the other two? - Yeah, was it smooth sailing,
0:42:20 > 0:42:22or did they have to tackle some dodgy waters?
0:42:22 > 0:42:25Life jackets at the ready, let's go back and find out.
0:42:27 > 0:42:32We return to Stoke-on-Trent and this mill, first seen by me in 2016.
0:42:34 > 0:42:37It was an old mill, yes, but it's obviously been offices.
0:42:37 > 0:42:40But, gosh, you've got to think to yourself,
0:42:40 > 0:42:42"What could you do with all this space?"
0:42:42 > 0:42:46What I would do is I would strip it back to reveal your footprint.
0:42:46 > 0:42:53# One last time I need to be the one who takes you home... #
0:42:53 > 0:42:56Taking the mill home for 59 grand in 2014
0:42:56 > 0:42:59was business partners Yann and Ricky.
0:42:59 > 0:43:01So why the delay in starting?
0:43:01 > 0:43:03We just weren't in any major rush.
0:43:03 > 0:43:06We really went for the design process and taking our time,
0:43:06 > 0:43:07making sure we were happy with it.
0:43:07 > 0:43:10- And then we just put it in with the planning.- OK.
0:43:10 > 0:43:13So now we're in a position where we want to crack on.
0:43:13 > 0:43:15Their timescale? One year.
0:43:15 > 0:43:18And a development budget of 450 grand.
0:43:18 > 0:43:22Yann also had some technology to help students with their National
0:43:22 > 0:43:24Vocational Qualifications.
0:43:24 > 0:43:27I invented a virtual reality tool
0:43:27 > 0:43:29which has 18 worldwide patents,
0:43:29 > 0:43:34which actually simulates all the jobs you do in this building.
0:43:35 > 0:43:40When we went back in 2017, the plan was to create 11 student flats,
0:43:40 > 0:43:42targeted at the local university.
0:43:44 > 0:43:46They had completed phase one,
0:43:46 > 0:43:50the removal of the asbestos by a licensed contractor.
0:43:50 > 0:43:53Phase two, stripping out - as I said I would do -
0:43:53 > 0:43:57getting a structural survey and quotes from contractors.
0:43:57 > 0:44:00And then they'd just reached phase three, finishing off.
0:44:00 > 0:44:05They'd spent just over half their 450 grand budget,
0:44:05 > 0:44:08giving students access to Yann's virtual reality technology,
0:44:08 > 0:44:11and were expecting completion in ten weeks.
0:44:13 > 0:44:15We're back 14 weeks and one day later
0:44:15 > 0:44:17for a sneak peak before the opening ceremony
0:44:17 > 0:44:19with the mayor tomorrow.
0:44:22 > 0:44:26The 11 apartments fall into four basic types.
0:44:26 > 0:44:28The smallest with the least facilities
0:44:28 > 0:44:30are the three studio apartments.
0:44:30 > 0:44:32In old money, they're bedsits.
0:44:40 > 0:44:42Next, there are three one-bed apartments
0:44:42 > 0:44:45with separate living/kitchen areas.
0:44:50 > 0:44:52On the top floor of the mill
0:44:52 > 0:44:55are four spectacular mezzanine apartments.
0:44:55 > 0:44:58Again, one bedroom, but with double height space.
0:45:02 > 0:45:04There are two types of these.
0:45:04 > 0:45:08One has a smaller bed platform but, for simplicity,
0:45:08 > 0:45:10we'll group the mezzanines together.
0:45:12 > 0:45:16Finally, back on the ground floor is the only two-bedded apartment.
0:45:19 > 0:45:23I must say, the smart facilities here are a far cry
0:45:23 > 0:45:26from what the digs were like when I was growing up in Leicester.
0:45:27 > 0:45:31Student accommodation is now a lucrative, evolving market.
0:45:31 > 0:45:35And here this evolution is partly down to the students themselves.
0:45:37 > 0:45:42It's been built for the students of the University of Stoke-on-Trent,
0:45:42 > 0:45:44which designed the rooms.
0:45:44 > 0:45:46Every room has Wi-Fi.
0:45:46 > 0:45:49It's to their specifications,
0:45:49 > 0:45:52so we were led by the people who will live in it.
0:45:52 > 0:45:55Because, remember, we could put what we think is right,
0:45:55 > 0:45:57but it might not be right for the student.
0:45:57 > 0:46:02So, if you like, it was built by the students for the students.
0:46:02 > 0:46:06Having made their mistakes in the virtual world before moving into the
0:46:06 > 0:46:08real world, the NVQ students
0:46:08 > 0:46:11were supervised at all times by an expert.
0:46:11 > 0:46:13But there were some drawbacks.
0:46:13 > 0:46:17Remember, if we gave it to straightforward electricians and plumbers,
0:46:17 > 0:46:19we would have finished it six months ago.
0:46:19 > 0:46:23Because, remember, whilst they're doing all the work for the examination,
0:46:25 > 0:46:28..they didn't charge us for doing it.
0:46:28 > 0:46:31It has to be stressed that there is no gas going into the building,
0:46:31 > 0:46:36and the NVQ area was limited primarily to plumbing.
0:46:36 > 0:46:37In the final phase,
0:46:37 > 0:46:4135 students were offered jobs as a result of their coursework.
0:46:41 > 0:46:44They were invited to the grand opening,
0:46:44 > 0:46:48but 32 declined as they were too busy working.
0:46:48 > 0:46:50Looking back over the entire project,
0:46:50 > 0:46:54Ricky feels the stripping out was the most important start point.
0:46:54 > 0:46:57There was some dampness in parts of the building,
0:46:57 > 0:47:01which we then had to hack off the brickwork and repair.
0:47:01 > 0:47:05But we rectified it by, you know, doing relevant guttering,
0:47:05 > 0:47:08and that was very important in the first stage.
0:47:08 > 0:47:11Because you find out all the relevant problems
0:47:11 > 0:47:13and then you go forward.
0:47:15 > 0:47:18I think any scheme that can turn an eyesore
0:47:18 > 0:47:20into luxury, energy-efficient,
0:47:20 > 0:47:24attractive accommodation is great news for urban renewal.
0:47:26 > 0:47:31The mill now has an insulated render to make it much cheaper to heat,
0:47:31 > 0:47:34and save space on the inside.
0:47:34 > 0:47:36But now it's finished, how is that budget?
0:47:39 > 0:47:42We managed to stick within our budget.
0:47:42 > 0:47:46We managed to do the entire build for the construction process
0:47:46 > 0:47:48for £405,000.
0:47:48 > 0:47:53Now, it's not often I say 45 grand under budget on a 59 grand purchase.
0:47:55 > 0:47:59We invited two local estate agents along to pass judgment on this
0:47:59 > 0:48:02£464,000 development.
0:48:02 > 0:48:06The things really that stand out for me is just the use of space.
0:48:06 > 0:48:09They must've had a fantastic architect in,
0:48:09 > 0:48:14who's really put thought into how many rooms they can get in.
0:48:14 > 0:48:17And I particularly like the mezzanine bedrooms.
0:48:17 > 0:48:19It just works really well for me.
0:48:19 > 0:48:21I think the standard of finish is very good.
0:48:21 > 0:48:24Obviously, it's a very recent refurb.
0:48:24 > 0:48:26A lot of the time with student accommodation,
0:48:26 > 0:48:28it's older terraced properties
0:48:28 > 0:48:31that won't be in the sort of standard that we see here.
0:48:31 > 0:48:34Please have a pen and paper ready to hand,
0:48:34 > 0:48:37as we're about to enter the very complex world
0:48:37 > 0:48:40of valuing a development like this.
0:48:40 > 0:48:43With the two-bedroom apartment, there is potential
0:48:43 > 0:48:48to let to two students and maybe charge around £90 a week per room.
0:48:48 > 0:48:51If we were to let the two-bedroomed apartment
0:48:51 > 0:48:52on the student market,
0:48:52 > 0:48:57I would be looking in the region of £650 per calendar month.
0:48:57 > 0:49:01We could now get into the detailed account of values
0:49:01 > 0:49:05of the various types and sizes of one-bedroom apartments,
0:49:05 > 0:49:07but we don't want the programme to overrun.
0:49:07 > 0:49:14So, suffice to say, the top value came out at £73,980 per annum,
0:49:14 > 0:49:18including bills. But Ricky and Yann have done a deal with the university
0:49:18 > 0:49:22for a first year's guaranteed rental of 61 grand,
0:49:22 > 0:49:25making them just over a 13% yield.
0:49:25 > 0:49:28So, what's been learned in the process?
0:49:28 > 0:49:31I think Ricky has learned... When he started working for me,
0:49:31 > 0:49:34he complained that the first two months,
0:49:34 > 0:49:36he did not have nothing much to do.
0:49:36 > 0:49:39He stopped complaining about three years ago!
0:49:40 > 0:49:43Because we've got about 15 sites now, all over the country.
0:49:43 > 0:49:46And, you know, life is all about learning from each other,
0:49:46 > 0:49:48working as a team.
0:49:48 > 0:49:52You know, you have to work with the council, with the university,
0:49:52 > 0:49:54with the apprentices.
0:49:54 > 0:49:58I think the future is going to be all about people having
0:49:58 > 0:50:01a common target and working towards it.
0:50:01 > 0:50:03And that's what we had.
0:50:08 > 0:50:11Earlier in the show, I was in the town of Bootle on Merseyside,
0:50:11 > 0:50:16where I saw a two-bed mid-terrace guided at £30,000 to £35,000.
0:50:16 > 0:50:20Its location, on the edge of a brand-new housing estate,
0:50:20 > 0:50:23was music to my ears.
0:50:23 > 0:50:26But the standard layout downstairs fell a bit flat.
0:50:26 > 0:50:31However, I had a suggestion that hit all the right notes.
0:50:31 > 0:50:34Now, I know I sound a bit like a broken record here, but honestly,
0:50:34 > 0:50:38things like this, get rid of this wall, open up this space.
0:50:38 > 0:50:40It's just... Making it open-plan is the only way to go.
0:50:40 > 0:50:43I feel like I've said that a thousand times before.
0:50:43 > 0:50:45Meanwhile, over here, the kitchen.
0:50:45 > 0:50:46This is open-plan. We like that.
0:50:46 > 0:50:48# I like the way you move... #
0:50:50 > 0:50:53Something else I liked was the existence of an upstairs bathroom.
0:50:53 > 0:50:55The second bedroom was a bit small,
0:50:55 > 0:50:58and while the master bedroom was a good size,
0:50:58 > 0:51:01I was more concerned about the evident damp problem.
0:51:03 > 0:51:06It's probably something simple. It's all along the front there,
0:51:06 > 0:51:09which would lead me to believe it's something to do with the gutters,
0:51:09 > 0:51:12or maybe that bottom part of the roof just needs sorting out.
0:51:12 > 0:51:15But it's the sort of thing you do need to address before it starts
0:51:15 > 0:51:17to damage the fabric of the building.
0:51:17 > 0:51:19But that didn't dampen the spirits of mum Andrea,
0:51:19 > 0:51:24who bought the property for £33,000 as an investment opportunity
0:51:24 > 0:51:28for daughter Harriet, who would be overseeing the project from her home
0:51:28 > 0:51:31over 260 miles away in Bournemouth.
0:51:31 > 0:51:35But with Mum on site and Harriet managing the budget of
0:51:35 > 0:51:39three to four grand remotely, there were some tricky decisions to make.
0:51:39 > 0:51:42Well, we're having a bit of a conflict about a wall.
0:51:42 > 0:51:46- Mum thinks one needs knocking down. - Which one? That one?
0:51:46 > 0:51:48- Yeah, that one.- The obvious wall to get rid of?- Yeah.
0:51:48 > 0:51:52- Well, you say that... - I do say that, yeah.
0:51:52 > 0:51:55- I don't know, I'm not sure whether it's worth it.- Yeah?
0:51:55 > 0:51:59Whatever the outcome, the project was to take two to three months,
0:51:59 > 0:52:02with stepdad John doing the work
0:52:02 > 0:52:06and business manager and skydiving instructor Harriet overseeing.
0:52:06 > 0:52:09So when we returned just under seven months later,
0:52:09 > 0:52:14did they hit the ground running, or come crashing down to earth?
0:52:14 > 0:52:18# Don't look down
0:52:18 > 0:52:23# Up this high, we'll never hit the ground... #
0:52:25 > 0:52:27Downstairs looks smashing,
0:52:27 > 0:52:31and a new fitted kitchen gives it a new lease of life.
0:52:31 > 0:52:34By extending the units into the dining space,
0:52:34 > 0:52:38there's some invaluable additional work space and, by the looks of it,
0:52:38 > 0:52:41Harriet won out over Wallgate.
0:52:41 > 0:52:44Yeah, Mum said she wanted to take the wall down,
0:52:44 > 0:52:46and when we saw Martin, he agreed. But I...
0:52:46 > 0:52:48From the start, I didn't want to do that at all.
0:52:48 > 0:52:50I thought it was unnecessary.
0:52:50 > 0:52:53And then we realised it's actually a load-bearing wall anyway.
0:52:53 > 0:52:57So the cost of it would have just completely outweighed, you know,
0:52:57 > 0:53:00any kind of benefit that we would have got from it.
0:53:00 > 0:53:01So, it stayed.
0:53:03 > 0:53:07Replacing load-bearing walls means getting a structural engineer
0:53:07 > 0:53:09to design a suitable beam,
0:53:09 > 0:53:12and it is a costly business, so the wall stayed put.
0:53:12 > 0:53:14And, anyway, it works.
0:53:14 > 0:53:17Though the decision to extend the kitchen revealed a leak
0:53:17 > 0:53:20coming from the bathroom upstairs.
0:53:20 > 0:53:22That's what led us to pulling the bathroom out,
0:53:22 > 0:53:24because all the pipework's behind the bath
0:53:24 > 0:53:26and you can't get at it until
0:53:26 > 0:53:29you actually take the entire bath out of the room,
0:53:29 > 0:53:31and the toilet out of the room.
0:53:31 > 0:53:33And then we thought we'd fixed it,
0:53:33 > 0:53:37put everything back in and then, we realised we hadn't fixed it.
0:53:37 > 0:53:40So all the bathroom had to come out for a second time,
0:53:40 > 0:53:41but then we did fix it.
0:53:41 > 0:53:44With the leak fixed, the bathroom was freshened up,
0:53:44 > 0:53:47and they had a roofer in to fix the gutters and misplaced tiles,
0:53:47 > 0:53:50which sorted the damp problem in the master bedroom.
0:53:51 > 0:53:55Harriet has been project managing from her home in Bournemouth,
0:53:55 > 0:53:59with mum Andrea on site and stepdad John doing most of the work
0:53:59 > 0:54:03himself, with the exception of plastering, gas and electrics.
0:54:03 > 0:54:06So has this long-distance relationship worked well?
0:54:08 > 0:54:10I found it difficult, because I've not been able to be here.
0:54:10 > 0:54:13So I've been relying on Mum to kind of describe things to me.
0:54:13 > 0:54:16So when they came across some of the issues,
0:54:16 > 0:54:19it was like Mum was describing things to me and I was trying
0:54:19 > 0:54:22to come up with a solution, but without actually seeing the problem.
0:54:22 > 0:54:24So, I found that bit difficult.
0:54:24 > 0:54:27But, overall, I found it absolutely fine.
0:54:28 > 0:54:31- I found it... - Do you disagree?
0:54:31 > 0:54:34I found it took longer than I expected,
0:54:34 > 0:54:36having not done one of these before.
0:54:36 > 0:54:39Unfortunately, the timescale overran,
0:54:39 > 0:54:43as Andrea had some medical issues, but was also able to enjoy a holiday
0:54:43 > 0:54:46during the seven months since we were last here.
0:54:46 > 0:54:49And they spent five grand in total,
0:54:49 > 0:54:54£1,000 over the high-end of the £3,000 to £4,000 budget.
0:54:54 > 0:54:56I think it's because on certain aspects, we kind of
0:54:56 > 0:54:58got to the point of buying it and then thought,
0:54:58 > 0:55:01"Well, we need to maybe go for, like, a higher quality
0:55:01 > 0:55:04"or more durable version of it," because we didn't think
0:55:04 > 0:55:07it was going to last, so we put in some higher-quality products
0:55:07 > 0:55:09than I think originally went into the costing.
0:55:09 > 0:55:11But I think that's going to pay off in the long run,
0:55:11 > 0:55:16that we won't have to, well, change them for a longer period of time.
0:55:17 > 0:55:19So, was that the right decision?
0:55:19 > 0:55:21Time to see what two local estate agents made
0:55:21 > 0:55:26of Andrea and Harriet's £38,000 investment.
0:55:26 > 0:55:29Let's start with the agent who saw it last time.
0:55:29 > 0:55:32It's great to come back to a house and see all the necessary changes
0:55:32 > 0:55:35that have been done to achieve the objective.
0:55:35 > 0:55:37I could easily fall into the trap of thinking
0:55:37 > 0:55:39that this has been done by a seasoned landlord.
0:55:39 > 0:55:42So, altogether, they should be applauded.
0:55:42 > 0:55:46The decor's fine, it's consistent throughout, quite modern.
0:55:46 > 0:55:48The layout is exactly what you would expect,
0:55:48 > 0:55:49if I'm being honest with you.
0:55:49 > 0:55:52However, the condition will sort of set this aside,
0:55:52 > 0:55:53whether they sell it or let it.
0:55:53 > 0:55:56The agents are happy, but, out of curiosity,
0:55:56 > 0:55:58what do they make of Harriet's decision
0:55:58 > 0:56:01to keep the living room wall?
0:56:01 > 0:56:04As it goes, letting in this environment
0:56:04 > 0:56:05with a house of this type,
0:56:05 > 0:56:08I don't think it was necessary to take that wall down.
0:56:08 > 0:56:09So I think they did the right thing.
0:56:09 > 0:56:12People actually want open-plan living at the moment,
0:56:12 > 0:56:13but it is only down to preference.
0:56:13 > 0:56:15If someone prefers that, they can do it.
0:56:15 > 0:56:18So, no, I don't think that will have a negative or even a positive
0:56:18 > 0:56:20impact on the sale of the property, or the let.
0:56:20 > 0:56:24Well, there you have it, folks - case closed on this one.
0:56:24 > 0:56:26And with the house complete,
0:56:26 > 0:56:28Harriet already has a tenant lined up.
0:56:28 > 0:56:30So, is she asking for the right rate?
0:56:31 > 0:56:34If the property was to go on the open market for rent,
0:56:34 > 0:56:40I would expected to fetch between £425 to £450 per calendar month.
0:56:40 > 0:56:44In my opinion, the rental value, as it stands now, nicely finished,
0:56:44 > 0:56:46I would have no difficulty in recommending
0:56:46 > 0:56:49£425 to £450 per calendar month.
0:56:49 > 0:56:53The higher figure could see Harriet achieving a whopping yield
0:56:53 > 0:56:55of over 14%.
0:56:55 > 0:56:59And the agents also valued the house at between £55,000 and £60,000
0:56:59 > 0:57:04on the sales market, giving a potential profit of £20,000,
0:57:04 > 0:57:06minus taxes and fees.
0:57:06 > 0:57:08So, is Harriet happy with the numbers?
0:57:09 > 0:57:13That's almost doubled itself in price, which is great.
0:57:13 > 0:57:17But our tenants that we've actually got coming in have already confirmed
0:57:17 > 0:57:21the 450 mark for it, so that's right on the money for what the value is.
0:57:21 > 0:57:23- Yeah.- So, I'm happy with that.
0:57:24 > 0:57:27Skydiving Harriet's first project has been a success.
0:57:27 > 0:57:29Does that mean the sky's the limit
0:57:29 > 0:57:32for this family property developing team?
0:57:32 > 0:57:37I play a minor role, which is being support.
0:57:37 > 0:57:40Not physically doing anything.
0:57:40 > 0:57:43So I don't mind staying in that role.
0:57:43 > 0:57:45Mum did a lot of legwork with the auction.
0:57:45 > 0:57:47She was the one who prepped behind-the-scenes, you know,
0:57:47 > 0:57:50had a look at all the different ones and went to view them.
0:57:50 > 0:57:53So, if she was happy to do that again, I think it would work.
0:57:56 > 0:57:59Well, property developing's a bit like a game of chess -
0:57:59 > 0:58:02it requires patience, resilience and a strategy.
0:58:02 > 0:58:05Yes, and with the right move at just the right time,
0:58:05 > 0:58:07you may get very good results.
0:58:07 > 0:58:10Yes, and you can see if those skills are put to the test here
0:58:10 > 0:58:13- on Homes Under The Hammer. See ya.- Bye.- Goodbye.