0:00:02 > 0:00:04Buying property can have its highs and its lows.
0:00:04 > 0:00:08It's not that easy, especially if you're stuck in a chain.
0:00:08 > 0:00:11You can eliminate that by buying under the hammer.
0:00:36 > 0:00:40Any investor tempted to divide up this large London flat
0:00:40 > 0:00:45could be making a mistake. I think you should keep it wide, spacious, airy.
0:00:46 > 0:00:51Does this commercial property in Crewe have the potential to become flats?
0:00:51 > 0:00:54The plans for downstairs were great.
0:00:54 > 0:00:55Not so here.
0:00:58 > 0:01:01These properties have been sold at auction and we'll find out
0:01:01 > 0:01:05who bought them and what they paid when they went under the hammer.
0:01:08 > 0:01:11Highbury in north London
0:01:11 > 0:01:15is one of the more desirable places to live in the capital.
0:01:15 > 0:01:17It has a fashionable mix of good restaurants,
0:01:17 > 0:01:22excellent transport links and was the historic home of Arsenal football club.
0:01:23 > 0:01:25When you're investing in property,
0:01:25 > 0:01:29you should look not only at what's happening in the area now
0:01:29 > 0:01:32but you should also research what's happening in the future.
0:01:32 > 0:01:34For Highbury in north London,
0:01:34 > 0:01:38there's exciting and interesting times ahead. More of that later.
0:01:38 > 0:01:42I've come to look at a one-bedroomed flat in this tall Victorian building.
0:01:42 > 0:01:47It's Flat G, so I'm presuming it's right up there.
0:01:49 > 0:01:52Perched at the top of these three flights of stairs
0:01:52 > 0:01:54is the property I'm looking for.
0:01:54 > 0:01:56The guide price is £160,000,
0:01:56 > 0:01:59which seems rather a lot for a one-bedroom flat
0:01:59 > 0:02:02but remember, this IS London.
0:02:02 > 0:02:06I'm slightly puffed out after running up all those stairs.
0:02:06 > 0:02:11Something I've noticed - there's no intercom system so whoever lives here
0:02:11 > 0:02:15will have to run downstairs to let guests in and then run back up again.
0:02:15 > 0:02:18My first impression is it's quite boxy in here.
0:02:18 > 0:02:20Don't forget it is a one-bedroom flat.
0:02:20 > 0:02:25Quite a small kitchen. Not much character, I have to say.
0:02:25 > 0:02:30But it's not going to be expensive to install a new kitchen
0:02:30 > 0:02:32because you can't get many units in here.
0:02:32 > 0:02:36Although you could think about knocking this wall out.
0:02:36 > 0:02:40It's only a partition wall and it would really open the space up.
0:02:40 > 0:02:42At the end of the landing is the bathroom.
0:02:42 > 0:02:46It's a big room and the white suite looks pretty good.
0:02:46 > 0:02:49There's no shower, but you could easily put one in.
0:02:49 > 0:02:53In here, you've got fantastic window dimensions.
0:02:53 > 0:02:55The light coming in here is incredible.
0:02:55 > 0:02:59Look, almost floor to ceiling windows here.
0:02:59 > 0:03:03You don't normally get that in top-floor Victorian conversions.
0:03:03 > 0:03:08It's a great room. You've got fantastic views out to that big wide street.
0:03:08 > 0:03:11Now, a lot of developers may want to come in here
0:03:11 > 0:03:16and create that extra bedroom just to get the extra value.
0:03:16 > 0:03:21They may think about putting a kitchen in here, using the kitchen space as another bedroom.
0:03:21 > 0:03:24But I wouldn't want to carve up this flat.
0:03:24 > 0:03:27I think you should keep it wide, spacious, airy
0:03:27 > 0:03:31and have that lovely grand Victorian feel about it.
0:03:31 > 0:03:36You know I said earlier there were exciting times ahead for the area.
0:03:36 > 0:03:37Let me show you why.
0:03:39 > 0:03:42This bedroom has got a very interesting view.
0:03:42 > 0:03:46Out there used to be the home ground for Arsenal football club.
0:03:46 > 0:03:48They've now got a brand-new stadium,
0:03:48 > 0:03:51literally a couple of minutes down the road.
0:03:51 > 0:03:55Now, this site here is really exciting.
0:03:55 > 0:03:59There's lots of development going on. Over 100 new homes are being created,
0:03:59 > 0:04:05there's leisure facilities and the old football pitch is going to be two acres of parkland.
0:04:05 > 0:04:08Now, lots of money is coming into this area
0:04:08 > 0:04:11and there are exciting times ahead.
0:04:11 > 0:04:15So this flat could potentially be a very good buy.
0:04:16 > 0:04:19Now Arsenal are playing in their new stadium,
0:04:19 > 0:04:22this road has lost the match-day crowds.
0:04:23 > 0:04:27The new development will retain the historic entrance to the old ground,
0:04:27 > 0:04:31as well as the wall at the back of the flat.
0:04:31 > 0:04:35Period conversions like this are always in huge demand,
0:04:35 > 0:04:38especially since it's moments away from Arsenal tube station.
0:04:38 > 0:04:43So who bought this place when it went to auction and how much did they pay?
0:04:43 > 0:04:47Lot 26 is Flat G. Nice looking building.
0:04:49 > 0:04:51Highbury. Good area.
0:04:52 > 0:04:54Realistic reserve.
0:04:54 > 0:04:56Where do you want to start?
0:04:57 > 0:04:58250.
0:04:58 > 0:04:59255.
0:05:00 > 0:05:03Have a think. 251. 252.
0:05:03 > 0:05:06253. 254. 255.
0:05:06 > 0:05:09256. 257.
0:05:10 > 0:05:11258.
0:05:11 > 0:05:13259.
0:05:13 > 0:05:17259. 260. 261.
0:05:20 > 0:05:23Have a think, of all you. 260 in the aisle.
0:05:23 > 0:05:24Anyone else? 261.
0:05:26 > 0:05:29No? If not, 260 with you in the aisle. First time,
0:05:29 > 0:05:31second time...
0:05:31 > 0:05:33third... 261.
0:05:33 > 0:05:34262.
0:05:34 > 0:05:35263.
0:05:35 > 0:05:37264.
0:05:37 > 0:05:39265.
0:05:39 > 0:05:43264. First time, second time, third and last time.
0:05:43 > 0:05:46265. 266.
0:05:46 > 0:05:47267.
0:05:47 > 0:05:49267, sir?
0:05:49 > 0:05:53266. First time, second time,
0:05:53 > 0:05:55third and last time. Have you all done?
0:05:55 > 0:05:57Sold. 266.
0:05:58 > 0:06:01With that fall of the hammer, the flat changed hands.
0:06:01 > 0:06:05It's now owned by Jusar, a property developer from London
0:06:05 > 0:06:07who paid £266,000.
0:06:15 > 0:06:18I met him at the flat to find out his plans.
0:06:18 > 0:06:22Have you got fantastic ideas for this flat?
0:06:22 > 0:06:25I think so. We're gonna make quite some changes here.
0:06:25 > 0:06:28Shall we go to the kitchen and have a chat? Follow me.
0:06:28 > 0:06:32Jusar already has a portfolio of 60 properties around London.
0:06:32 > 0:06:34He intends to rent this one out.
0:06:34 > 0:06:37But he's having second thoughts about the accommodation.
0:06:37 > 0:06:40I was gonna leave it as a one-bedroomed flat
0:06:40 > 0:06:45but having another look around, I can potentially make it a two-bedroomed flat.
0:06:45 > 0:06:49Hopefully it will generate a better return for me in the long run.
0:06:49 > 0:06:52If it sells as a two-bedroomed, it'll be more attractive.
0:06:52 > 0:06:55I'm disappointed you're going to do that.
0:06:55 > 0:06:58I walked in here and straight away loved the whole feel
0:06:58 > 0:07:01- of that grand room.- Yeah.
0:07:01 > 0:07:02Where will your kitchen go?
0:07:02 > 0:07:05I'm gonna move it into the lounge area.
0:07:05 > 0:07:11The fashion around here, I find, is that people want to have a social aspect to the kitchen.
0:07:11 > 0:07:17They want to cook for their friends as well as watch TV or whatever.
0:07:17 > 0:07:20I think it will spoil the dynamics of that room.
0:07:20 > 0:07:22- It's such a spectacular room.- Sure.
0:07:22 > 0:07:26Your kitchen's there so you need a table and chairs.
0:07:26 > 0:07:28- Do you think that room can take it? - I think so.
0:07:28 > 0:07:32People who live round here are gonna grab bites or have TV dinners.
0:07:32 > 0:07:37Rather than have a formal dining table and chairs, cos it's quite a small room,
0:07:37 > 0:07:41I'm gonna have a large coffee table so they can put their feet up.
0:07:41 > 0:07:44The tenants you need are people that don't eat dinner!
0:07:44 > 0:07:47- Happy to sit in front of the TV! - Microwave dinners!
0:07:47 > 0:07:51He plans to convert the kitchen into a second bedroom.
0:07:51 > 0:07:53But I reckon that'll be a tight squeeze.
0:07:56 > 0:08:00You think this will suffice as a bedroom? It's really small!
0:08:00 > 0:08:04It's tiny. I wouldn't live in here. I plan to move this wall here.
0:08:04 > 0:08:07Two or three feet to slightly widen this room.
0:08:07 > 0:08:11Do you honestly think that then this bedroom would be a good size?
0:08:11 > 0:08:16I think it'll be a reasonable size. Technically a double bedroom.
0:08:16 > 0:08:19And you're dead set on that? Have you thought it through?
0:08:19 > 0:08:20I think so.
0:08:20 > 0:08:24I think so. It's changed the budget a bit,
0:08:24 > 0:08:27but in the long run it'll be better value.
0:08:27 > 0:08:32'How much does he think it'll cost to convert to two beds?'
0:08:32 > 0:08:36I think round about 25,000. I don't really want to spend more than that.
0:08:36 > 0:08:38A lot of it is labour.
0:08:38 > 0:08:42How long do you think it will take you to change the layout now?
0:08:42 > 0:08:47With the new format, I'm guessing it'll take three to four weeks.
0:08:47 > 0:08:51'Well, a quick turnaround for this fast-food flat,
0:08:51 > 0:08:55'where the microwave looks like it's going to rule.'
0:08:56 > 0:09:00There's no doubt about it. Jusar spent a lot of money on this flat at auction.
0:09:00 > 0:09:04I know his plans to turn it into a two-bedroomed property
0:09:04 > 0:09:06will be worthwhile in the long run.
0:09:06 > 0:09:10I just can't help thinking this place really works as it is.
0:09:10 > 0:09:14Let's see what happens when we come back later in the programme.
0:09:18 > 0:09:21This is Crewe, where business is booming -
0:09:21 > 0:09:26a good sign as it makes it a smart place to invest.
0:09:26 > 0:09:27Well, former commercial property
0:09:27 > 0:09:31can often throw up interesting residential development opportunities,
0:09:31 > 0:09:35and I think there's one of those here in the west end of Crewe.
0:09:35 > 0:09:37It's a former taxi offices.
0:09:37 > 0:09:40It's got a guide price of £75,000.
0:09:40 > 0:09:42Not much from the outside, but you never know.
0:09:44 > 0:09:47This two-storey former taxi office
0:09:47 > 0:09:50may sit on a main road with no easy parking at the front,
0:09:50 > 0:09:56but at the back there's not only a flat-roof extension but also a large free car park.
0:09:56 > 0:10:01That's quite a bonus but the best is yet to come.
0:10:03 > 0:10:06The great news is that this property already comes
0:10:06 > 0:10:12with planning permission for a one-bedroom flat downstairs and a two-bedroom flat upstairs.
0:10:12 > 0:10:16So what have we got, then? This is what I guess was the main taxi office.
0:10:16 > 0:10:19This is going to be a bedroom on the left-hand side
0:10:19 > 0:10:22and a living room, like a through living room, on the right.
0:10:22 > 0:10:25So through into what is going to be the kitchen area.
0:10:25 > 0:10:32That wall is coming out. So is this one, which is going to create a really nice sort of open-plan area,
0:10:32 > 0:10:36which for a small flat is going to give it a big feeling of space.
0:10:36 > 0:10:41But the key is closing off the existing entrance and putting a new door here,
0:10:41 > 0:10:45then a doorway leading through to the new bathroom there.
0:10:45 > 0:10:49So you've got bathroom there, kitchen, open-plan living area. Really nice plan.
0:10:49 > 0:10:52Let's take a look upstairs.
0:10:52 > 0:10:58So, with a bit of sorting, this hotchpotch area could be turned into a decent one-bedroom flat.
0:10:58 > 0:11:02That's all fairly encouraging and so is the top floor.
0:11:03 > 0:11:06Well, this is a bit of a turn-up for the books -
0:11:06 > 0:11:07right at the top, an extra room.
0:11:07 > 0:11:12You can't call this a bedroom because it doesn't meet building regulations.
0:11:12 > 0:11:15Staircase way too narrow and far too steep.
0:11:15 > 0:11:18But also the head height. To make it a proper room,
0:11:18 > 0:11:21it has to have a certain percentage above a certain height.
0:11:21 > 0:11:25I don't think it meets that but a useful space and you'd have to ask yourself,
0:11:25 > 0:11:29is it worth converting it into a bedroom, getting planning permission?
0:11:29 > 0:11:32There's certainly space to go into the eaves that way, like here,
0:11:32 > 0:11:36but you have got issues with things like the floor, because I don't think...
0:11:38 > 0:11:40..it's terribly strong at the moment.
0:11:42 > 0:11:47In practical terms, that means you'd have to replace the entire floor
0:11:47 > 0:11:51with load-bearing beams which would put quite a strain on your budget.
0:11:51 > 0:11:55One thing which might influence your decision to get planning permission
0:11:55 > 0:12:00to convert that to a bedroom is what's going on down here on the first floor,
0:12:00 > 0:12:03because the plan is to convert it into a two-bedroom flat.
0:12:03 > 0:12:07You know how I said I thought the plans were downstairs were great?
0:12:07 > 0:12:09Not so here. What have we got, basically? Two bedrooms.
0:12:09 > 0:12:12This is going to be the lounge area so you've got
0:12:12 > 0:12:16a set of stairs coming into it, a set of stairs going out of it.
0:12:16 > 0:12:17But that isn't the bad bit.
0:12:17 > 0:12:19The really bad it is in here.
0:12:19 > 0:12:22You've got a tiny space which is currently the bathroom.
0:12:22 > 0:12:27It's about 10ft by 4ft and the plan is to convert this into
0:12:27 > 0:12:32the bathroom toilet and that bit, the kitchen of this flat.
0:12:32 > 0:12:35For a two-bedroom flat! You've gotta be kidding!
0:12:35 > 0:12:36This is bonkers.
0:12:36 > 0:12:40There's not enough space to swing a cat here, let alone a frying pan.
0:12:40 > 0:12:45I can't help feeling there must be a better option for the layout of this two-bedroom flat.
0:12:48 > 0:12:51Well, maybe not the most glamorous of properties, but you know what?
0:12:51 > 0:12:54It's a really good investment one to go for.
0:12:54 > 0:12:57You could convert those flats and rent them out for a bit of a profit
0:12:57 > 0:12:59or do them up and sell them on.
0:12:59 > 0:13:02Either way, I reckon it's a good one to go for.
0:13:02 > 0:13:04Let's see who spots the opportunity at auction.
0:13:07 > 0:13:12Lot 24, 118 West Street, Crewe, this time.
0:13:12 > 0:13:1460 then, start me at 60. 60 I'm bid. Thank you.
0:13:14 > 0:13:16At £60,000, for lot 24.
0:13:16 > 0:13:18Opening bid of 60.
0:13:19 > 0:13:21£61,000 waving at the back.
0:13:21 > 0:13:25At £61,000. 62 is it now? 62.
0:13:25 > 0:13:2763 is it?
0:13:28 > 0:13:31£63,000. 64.
0:13:31 > 0:13:3465. 66.
0:13:34 > 0:13:3767. 68.
0:13:37 > 0:13:3969.
0:13:39 > 0:13:42The half then? 69 and a half?
0:13:42 > 0:13:4570. Another half?
0:13:45 > 0:13:47£70,000, then the bid's left.
0:13:47 > 0:13:53Coming back in at £70,000 for Lot 24. Are we all done?
0:13:53 > 0:13:55At £70,000 then.
0:13:56 > 0:13:59You bought it, sir. Well done.
0:13:59 > 0:14:02So for £5,000 less than the guide price,
0:14:02 > 0:14:06the new owner of the old taxi office is David.
0:14:06 > 0:14:10He was born locally and has recently returned to Crewe to open a pub
0:14:10 > 0:14:13after a career as a management accountant.
0:14:13 > 0:14:15With the pub now running smoothly,
0:14:15 > 0:14:19he's finally given in to the old ambition to develop property.
0:14:19 > 0:14:21# Oh, how I want to be free
0:14:23 > 0:14:27# Oh, how I want to break free! #
0:14:27 > 0:14:30Purchasing an ex-commercial property
0:14:30 > 0:14:32that has already got planning permission
0:14:32 > 0:14:35certainly gives David a good chance of success.
0:14:35 > 0:14:39But he isn't too impressed with the proposed layout for the top flat.
0:14:39 > 0:14:42When it comes to the upstairs, I think there's an opportunity,
0:14:42 > 0:14:44if I can get permission to do it,
0:14:44 > 0:14:48to improve things substantially on what was originally planned.
0:14:48 > 0:14:52And then what will you do then? What would your plans for that...?
0:14:52 > 0:14:53- Upstairs?- Yeah.
0:14:53 > 0:14:58Get building regs for the loft space to be used as a proper bedroom.
0:14:58 > 0:15:02What is currently the second bedroom would then become a kitchen-diner,
0:15:02 > 0:15:06so it will all become a big, sort of open-plan area.
0:15:06 > 0:15:09And then what was proposed to be the kitchen,
0:15:09 > 0:15:12- the toilet and the bathroom... - Disaster!
0:15:12 > 0:15:14..would be just the bathroom.
0:15:14 > 0:15:17Right. Much better plan.
0:15:17 > 0:15:19- Fingers crossed.- Absolutely!
0:15:19 > 0:15:22- What about downstairs? Do you like the plans for downstairs?- Yeah.
0:15:22 > 0:15:24We're sticking to the plans for downstairs.
0:15:24 > 0:15:29David has spoken to the council about these potential changes
0:15:29 > 0:15:32and may not have to go through the planning process again,
0:15:32 > 0:15:34which will save him time and money.
0:15:34 > 0:15:37What about budgets for what you're planning?
0:15:37 > 0:15:42Well, as you know, the building cost myself £70,000.
0:15:42 > 0:15:48I'm working to a budget of 20 for materials and labour for everything,
0:15:48 > 0:15:52so that'll make me 90 plus 1,000 or 2,000 for legal costs and things.
0:15:52 > 0:15:55So I'm working to a budget of about 92, £93,000.
0:15:55 > 0:15:58Have you got somebody lined up to do the work?
0:15:58 > 0:16:00Yes. Yeah, I've got a good friend, Mick,
0:16:00 > 0:16:02who's one of the friends who lives in...
0:16:02 > 0:16:05Well, used to live in the area, knows it really well,
0:16:05 > 0:16:06so he knows the kind of...
0:16:06 > 0:16:09He's done these kind of properties before.
0:16:09 > 0:16:11He knows what he's doing, so I'm happy to work with him.
0:16:11 > 0:16:14- Is he a builder?- Oh yes. Yeah.
0:16:14 > 0:16:20So what does builder Mick think of David's purchase?
0:16:21 > 0:16:25One of the main problems we've got in this house is leaks and damps.
0:16:25 > 0:16:27One of the big problems is on the wall,
0:16:27 > 0:16:31and out here, there's the rendering, the water's getting behind it
0:16:31 > 0:16:32and soaking it up like a sponge.
0:16:32 > 0:16:36Plus the soil starts leaking and on the roof.
0:16:36 > 0:16:39So what I'll have to do is take all this back
0:16:39 > 0:16:41and redo it and reseal the wall.
0:16:41 > 0:16:45With builder Mick on hand and armed with a 20-grand budget,
0:16:45 > 0:16:49the ever-optimistic David seems ready to take on this taxi office.
0:16:49 > 0:16:52Let's hope it's not too taxing.
0:16:52 > 0:16:53As David goes to prove,
0:16:53 > 0:16:57it's never too late to start in the property development game
0:16:57 > 0:17:01and his management background has meant he has all his ducks in a row
0:17:01 > 0:17:04and I'm sure he will make a great success of this project.
0:17:04 > 0:17:08It's a challenge though. Find out how he gets on later in the show.
0:17:10 > 0:17:14Well, days, weeks and months have passed,
0:17:14 > 0:17:17so work should have started on our properties.
0:17:17 > 0:17:20Will there be brick dust and ladders all over the place,
0:17:20 > 0:17:23- or will the properties look brand-new?- Let's find out.
0:17:23 > 0:17:26MUSIC: THEME TO "MATCH OF THE DAY"
0:17:26 > 0:17:29We've shot back to Highbury in north London,
0:17:29 > 0:17:31the once-famous home of Arsenal football club.
0:17:31 > 0:17:35This one-bed top-floor flat overlooked the old ground
0:17:35 > 0:17:38and was bought for 266 grand by Jusar.
0:17:42 > 0:17:45There must have been a great team-talk by Jusar
0:17:45 > 0:17:49because inside, what a change!
0:17:49 > 0:17:52The large living room has a new kitchen at one end.
0:17:52 > 0:17:56Yet surprisingly, it still feels really big.
0:17:59 > 0:18:02The original bedroom remains
0:18:02 > 0:18:05although that has been extended into what was the bathroom.
0:18:08 > 0:18:14And a new bathroom's been installed. But there's no sign of that second bedroom.
0:18:14 > 0:18:17So has Jusar had a rethink?
0:18:17 > 0:18:20I've changed the layout of the flat.
0:18:20 > 0:18:23We only decided that after we started work.
0:18:23 > 0:18:27We've removed some of the walls - the bedroom and bathroom walls -
0:18:27 > 0:18:30and decided to keep it as a bigger spacious bedroom
0:18:30 > 0:18:32as opposed to having two cramped bedrooms.
0:18:32 > 0:18:37The other thing is I've relocated the kitchen to the lounge,
0:18:37 > 0:18:39the bathroom to where the old kitchen was.
0:18:39 > 0:18:43We decided not to have a full-scale bathtub and everything.
0:18:43 > 0:18:48We just put an extremely large shower cubicle.
0:18:48 > 0:18:53Jusar had planned to move just the stud wall between the kitchen and bedroom
0:18:53 > 0:18:57but ended up totally removing the wall between the bathroom and bedroom.
0:18:58 > 0:19:03Right, what we decided on this room was to open it up.
0:19:03 > 0:19:06There was a stud wall here and a stud wall here.
0:19:06 > 0:19:09This housed the bathroom with the bathtub behind me.
0:19:09 > 0:19:14Adjacent to that we had the storage cupboard for the water tank.
0:19:14 > 0:19:19We initially removed the two walls and decided it made a nice living space.
0:19:19 > 0:19:21We also looked at the ceiling and decided
0:19:21 > 0:19:25there was a lot of space hidden there on a suspended ceiling.
0:19:25 > 0:19:27So we removed all the tiles
0:19:27 > 0:19:32and you can see it's more or less the same height as the original bedroom ceiling.
0:19:33 > 0:19:38As he was looking up to the heavens, Jusar was blessed with a nice surprise.
0:19:38 > 0:19:42The hidden potential I found in this flat was the loft space.
0:19:42 > 0:19:45It's much bigger than I imagined.
0:19:45 > 0:19:49It's head height and the full width of the building.
0:19:49 > 0:19:52So there's plenty of space for another bedroom up there.
0:19:52 > 0:19:57It's a future project. It will increase the value of the property significantly.
0:19:57 > 0:19:59Was it luck or a developer's hunch?
0:19:59 > 0:20:04Either way, it looks as if Jusar could well get that second bedroom after all.
0:20:04 > 0:20:08I was really concerned about putting the kitchen into that lovely living room.
0:20:08 > 0:20:10But it actually remains quite spacious
0:20:10 > 0:20:13thanks to another space-saving trick.
0:20:14 > 0:20:18What I've done here, cos I felt this was quite narrow and too long,
0:20:18 > 0:20:24is I've brought this cupboard storage back about a foot and a half.
0:20:24 > 0:20:28I've retained the storage but not as much. It was excessive for this flat.
0:20:28 > 0:20:31So we've got a bit of extra living area here.
0:20:31 > 0:20:33The bathroom has an expensive shower,
0:20:33 > 0:20:38though to my mind it doesn't make up for the lack of a bath. However,
0:20:38 > 0:20:40the finish throughout is excellent.
0:20:40 > 0:20:44All the fittings are mid-range, not basic DIY,
0:20:44 > 0:20:48and the whole flat will have solid wood flooring, not just a laminate.
0:20:48 > 0:20:50So how's the budget looking?
0:20:50 > 0:20:54The budget was originally set for between 20 and £25,000.
0:20:54 > 0:20:56That was for the entire flat.
0:20:56 > 0:20:59The final cost, including materials and labour
0:20:59 > 0:21:03has come to £19,100, so I'm quite pleased with that. Under budget
0:21:03 > 0:21:08and to a layout which is slightly better than I'd originally planned.
0:21:09 > 0:21:12Jusar plans to rent this flat out,
0:21:12 > 0:21:14adding it to his portfolio of 60 properties
0:21:14 > 0:21:16with 100 tenants.
0:21:16 > 0:21:20Time to discover what two local property experts think it could fetch.
0:21:36 > 0:21:39To sell the property you'd be looking for 290,000.
0:21:39 > 0:21:43'Oh, dear. He'll barely break even.'
0:21:43 > 0:21:45A little bit less than I'd expected.
0:21:45 > 0:21:48I was looking more like 310, 320.
0:21:48 > 0:21:52But I'm not looking to sell it immediately, anyway,
0:21:52 > 0:21:55so it's just an academic figure.
0:21:55 > 0:21:58'Right. Well, let's check out the rental return.'
0:21:58 > 0:22:02On the rental market, you could achieve about £1,350 per month.
0:22:02 > 0:22:05That's pretty much in line with what I was expecting.
0:22:05 > 0:22:08I'd gauged it at around £300 a week.
0:22:08 > 0:22:11It's pretty much as I thought.
0:22:11 > 0:22:13'But this flat will remain with one bedroom
0:22:13 > 0:22:17'until such a time as the loft conversion adds that second one.'
0:22:24 > 0:22:28Back in Crewe, one-time accountant turned publican, David
0:22:28 > 0:22:31had bought an old taxi office for 70 grand.
0:22:31 > 0:22:35Well, from the outside, these new windows and doors
0:22:35 > 0:22:38make it more like a residential property.
0:22:38 > 0:22:41Inside, it's been opened up to make space
0:22:41 > 0:22:45for the bedroom and kitchen diner, as David explains.
0:22:45 > 0:22:48Well, as you remember, this was one big taxi office.
0:22:48 > 0:22:49This wall wasn't here.
0:22:49 > 0:22:53There was a wall here and a Saniloo toilet
0:22:53 > 0:22:55and then another wall, door through there,
0:22:55 > 0:22:57into a small back office.
0:22:57 > 0:23:00We decided to take all of those away, create the bedroom,
0:23:00 > 0:23:02a lovely living area, and a kitchen,
0:23:02 > 0:23:06and a dining area, and we're very happy with it now.
0:23:06 > 0:23:07It's quite an open and airy space.
0:23:07 > 0:23:11David was always happy to follow the agreed plans
0:23:11 > 0:23:12for the downstairs flat,
0:23:12 > 0:23:16but the upstairs apartment was a different story.
0:23:16 > 0:23:25Making all these changes happen was David's builder mate, Mick.
0:23:27 > 0:23:30As you can see up here, we've opened it all out.
0:23:30 > 0:23:33We took this wall out here to give it more room into the kitchen,
0:23:33 > 0:23:35and along here.
0:23:35 > 0:23:40This originally on the plans was gonna be a kitchen-bathroom.
0:23:40 > 0:23:43We've just made it into a nice comfortable bathroom.
0:23:43 > 0:23:48David has sacrificed a bedroom to get a separate bathroom and kitchen
0:23:48 > 0:23:52and has definitely come up with a better configuration than the original plans,
0:23:52 > 0:23:55but hadn't he hoped to get that second bedroom back
0:23:55 > 0:23:56by using the loft room?
0:23:56 > 0:24:00We originally intended to get permission
0:24:00 > 0:24:02to make that second bedroom
0:24:02 > 0:24:05to replace the bedroom that we lost by moving the kitchen.
0:24:05 > 0:24:07But when it came to getting building regulations
0:24:07 > 0:24:10and the work that we would have had to have done to achieve those,
0:24:10 > 0:24:12we decided not to do it.
0:24:12 > 0:24:16Apart from that, the staircase that came down into this room
0:24:16 > 0:24:18spoilt this space,
0:24:18 > 0:24:20so we decided to do away with that idea,
0:24:20 > 0:24:23do away with the staircase, replace it with a loft ladder
0:24:23 > 0:24:26and make this a whole presentable living area.
0:24:26 > 0:24:28I think that was a sensible idea.
0:24:28 > 0:24:31Getting permission for the upper room to be converted
0:24:31 > 0:24:34into usable living space would have cost both time and money.
0:24:34 > 0:24:38It probably wouldn't have massively increased David's return,
0:24:38 > 0:24:41so I think he and his builder Mick have chosen the best compromise.
0:24:41 > 0:24:46Mick is an experienced builder but David was a rookie project manager.
0:24:46 > 0:24:48On a conversion like this,
0:24:48 > 0:24:51there is a fair number of regulations to deal with.
0:24:51 > 0:24:54Not easy when you're new to it all.
0:24:54 > 0:24:59Well, this has been a very steep learning curve for me,
0:24:59 > 0:25:03and the one thing that I would definitely do next time
0:25:03 > 0:25:06is sort out the utilities before...
0:25:06 > 0:25:09Or as early as I can, let's put it that way.
0:25:09 > 0:25:12Because that's one of the things that's delayed us.
0:25:12 > 0:25:17But has that steep learning curve
0:25:17 > 0:25:20meant this project has cut corners and cost him money?
0:25:20 > 0:25:22Time to ask the agents.
0:25:35 > 0:25:39David paid 70,000 for the whole building at auction
0:25:39 > 0:25:43and has spent £25,000 turning it into two separate flats.
0:25:43 > 0:25:47So, what could he get for each?
0:25:47 > 0:25:52I think there is very little to differentiate in values on resale.
0:25:52 > 0:25:55But I would suggest that they are both between
0:25:55 > 0:25:56probably £65,000 to £70,000.
0:25:56 > 0:26:00David plans to rent the flats out for a few years
0:26:00 > 0:26:04and then, as the area continues to improve, sell them on.
0:26:04 > 0:26:06So, can the rent sustain a mortgage here?
0:26:06 > 0:26:09For rental purposes, what I would suggest
0:26:09 > 0:26:12is a figure of £375 per month for each flat.
0:26:12 > 0:26:14Very good return, I'm happy with that.
0:26:19 > 0:26:22David hummed and hawed about doing property renovations
0:26:22 > 0:26:23for a number of years.
0:26:23 > 0:26:27I've had the opportunity to do it for the last 10, 15 years,
0:26:27 > 0:26:30but actually, I've got on with it now and got stuck in.
0:26:30 > 0:26:32I really enjoyed it. I found it a positive experience.
0:26:32 > 0:26:36And to actually see something develop in front of you
0:26:36 > 0:26:40and be created, and be part of it, is really good.
0:26:40 > 0:26:41I'm a happy accountant.
0:26:41 > 0:26:46Well, the numbers have definitely added up for this happy accountant.
0:26:46 > 0:26:48And after putting it off for so long,
0:26:48 > 0:26:51David is now firmly bitten by the property bug.
0:26:51 > 0:26:55# It's not too late... #
0:27:01 > 0:27:04We'll be back next time for more Homes Under The Hammer.
0:27:04 > 0:27:08- Join us then for more action from the auction.- See you then. - Bye-bye.
0:27:17 > 0:27:19Subtitles by Red Bee Media Ltd
0:27:19 > 0:27:20E-mail subtitling@bbc.co.uk