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Buying property can have its highs and its lows. | 0:00:02 | 0:00:04 | |
It's not that easy, especially if you're stuck in a chain. | 0:00:04 | 0:00:08 | |
You can eliminate that by buying under the hammer. | 0:00:08 | 0:00:11 | |
Any investor tempted to divide up this large London flat | 0:00:36 | 0:00:40 | |
could be making a mistake. I think you should keep it wide, spacious, airy. | 0:00:40 | 0:00:45 | |
Does this commercial property in Crewe have the potential to become flats? | 0:00:46 | 0:00:51 | |
The plans for downstairs were great. | 0:00:51 | 0:00:54 | |
Not so here. | 0:00:54 | 0:00:55 | |
These properties have been sold at auction and we'll find out | 0:00:58 | 0:01:01 | |
who bought them and what they paid when they went under the hammer. | 0:01:01 | 0:01:05 | |
Highbury in north London | 0:01:08 | 0:01:11 | |
is one of the more desirable places to live in the capital. | 0:01:11 | 0:01:15 | |
It has a fashionable mix of good restaurants, | 0:01:15 | 0:01:17 | |
excellent transport links and was the historic home of Arsenal football club. | 0:01:17 | 0:01:22 | |
When you're investing in property, | 0:01:23 | 0:01:25 | |
you should look not only at what's happening in the area now | 0:01:25 | 0:01:29 | |
but you should also research what's happening in the future. | 0:01:29 | 0:01:32 | |
For Highbury in north London, | 0:01:32 | 0:01:34 | |
there's exciting and interesting times ahead. More of that later. | 0:01:34 | 0:01:38 | |
I've come to look at a one-bedroomed flat in this tall Victorian building. | 0:01:38 | 0:01:42 | |
It's Flat G, so I'm presuming it's right up there. | 0:01:42 | 0:01:47 | |
Perched at the top of these three flights of stairs | 0:01:49 | 0:01:52 | |
is the property I'm looking for. | 0:01:52 | 0:01:54 | |
The guide price is £160,000, | 0:01:54 | 0:01:56 | |
which seems rather a lot for a one-bedroom flat | 0:01:56 | 0:01:59 | |
but remember, this IS London. | 0:01:59 | 0:02:02 | |
I'm slightly puffed out after running up all those stairs. | 0:02:02 | 0:02:06 | |
Something I've noticed - there's no intercom system so whoever lives here | 0:02:06 | 0:02:11 | |
will have to run downstairs to let guests in and then run back up again. | 0:02:11 | 0:02:15 | |
My first impression is it's quite boxy in here. | 0:02:15 | 0:02:18 | |
Don't forget it is a one-bedroom flat. | 0:02:18 | 0:02:20 | |
Quite a small kitchen. Not much character, I have to say. | 0:02:20 | 0:02:25 | |
But it's not going to be expensive to install a new kitchen | 0:02:25 | 0:02:30 | |
because you can't get many units in here. | 0:02:30 | 0:02:32 | |
Although you could think about knocking this wall out. | 0:02:32 | 0:02:36 | |
It's only a partition wall and it would really open the space up. | 0:02:36 | 0:02:40 | |
At the end of the landing is the bathroom. | 0:02:40 | 0:02:42 | |
It's a big room and the white suite looks pretty good. | 0:02:42 | 0:02:46 | |
There's no shower, but you could easily put one in. | 0:02:46 | 0:02:49 | |
In here, you've got fantastic window dimensions. | 0:02:49 | 0:02:53 | |
The light coming in here is incredible. | 0:02:53 | 0:02:55 | |
Look, almost floor to ceiling windows here. | 0:02:55 | 0:02:59 | |
You don't normally get that in top-floor Victorian conversions. | 0:02:59 | 0:03:03 | |
It's a great room. You've got fantastic views out to that big wide street. | 0:03:03 | 0:03:08 | |
Now, a lot of developers may want to come in here | 0:03:08 | 0:03:11 | |
and create that extra bedroom just to get the extra value. | 0:03:11 | 0:03:16 | |
They may think about putting a kitchen in here, using the kitchen space as another bedroom. | 0:03:16 | 0:03:21 | |
But I wouldn't want to carve up this flat. | 0:03:21 | 0:03:24 | |
I think you should keep it wide, spacious, airy | 0:03:24 | 0:03:27 | |
and have that lovely grand Victorian feel about it. | 0:03:27 | 0:03:31 | |
You know I said earlier there were exciting times ahead for the area. | 0:03:31 | 0:03:36 | |
Let me show you why. | 0:03:36 | 0:03:37 | |
This bedroom has got a very interesting view. | 0:03:39 | 0:03:42 | |
Out there used to be the home ground for Arsenal football club. | 0:03:42 | 0:03:46 | |
They've now got a brand-new stadium, | 0:03:46 | 0:03:48 | |
literally a couple of minutes down the road. | 0:03:48 | 0:03:51 | |
Now, this site here is really exciting. | 0:03:51 | 0:03:55 | |
There's lots of development going on. Over 100 new homes are being created, | 0:03:55 | 0:03:59 | |
there's leisure facilities and the old football pitch is going to be two acres of parkland. | 0:03:59 | 0:04:05 | |
Now, lots of money is coming into this area | 0:04:05 | 0:04:08 | |
and there are exciting times ahead. | 0:04:08 | 0:04:11 | |
So this flat could potentially be a very good buy. | 0:04:11 | 0:04:15 | |
Now Arsenal are playing in their new stadium, | 0:04:16 | 0:04:19 | |
this road has lost the match-day crowds. | 0:04:19 | 0:04:22 | |
The new development will retain the historic entrance to the old ground, | 0:04:23 | 0:04:27 | |
as well as the wall at the back of the flat. | 0:04:27 | 0:04:31 | |
Period conversions like this are always in huge demand, | 0:04:31 | 0:04:35 | |
especially since it's moments away from Arsenal tube station. | 0:04:35 | 0:04:38 | |
So who bought this place when it went to auction and how much did they pay? | 0:04:38 | 0:04:43 | |
Lot 26 is Flat G. Nice looking building. | 0:04:43 | 0:04:47 | |
Highbury. Good area. | 0:04:49 | 0:04:51 | |
Realistic reserve. | 0:04:52 | 0:04:54 | |
Where do you want to start? | 0:04:54 | 0:04:56 | |
250. | 0:04:57 | 0:04:58 | |
255. | 0:04:58 | 0:04:59 | |
Have a think. 251. 252. | 0:05:00 | 0:05:03 | |
253. 254. 255. | 0:05:03 | 0:05:06 | |
256. 257. | 0:05:06 | 0:05:09 | |
258. | 0:05:10 | 0:05:11 | |
259. | 0:05:11 | 0:05:13 | |
259. 260. 261. | 0:05:13 | 0:05:17 | |
Have a think, of all you. 260 in the aisle. | 0:05:20 | 0:05:23 | |
Anyone else? 261. | 0:05:23 | 0:05:24 | |
No? If not, 260 with you in the aisle. First time, | 0:05:26 | 0:05:29 | |
second time... | 0:05:29 | 0:05:31 | |
third... 261. | 0:05:31 | 0:05:33 | |
262. | 0:05:33 | 0:05:34 | |
263. | 0:05:34 | 0:05:35 | |
264. | 0:05:35 | 0:05:37 | |
265. | 0:05:37 | 0:05:39 | |
264. First time, second time, third and last time. | 0:05:39 | 0:05:43 | |
265. 266. | 0:05:43 | 0:05:46 | |
267. | 0:05:46 | 0:05:47 | |
267, sir? | 0:05:47 | 0:05:49 | |
266. First time, second time, | 0:05:49 | 0:05:53 | |
third and last time. Have you all done? | 0:05:53 | 0:05:55 | |
Sold. 266. | 0:05:55 | 0:05:57 | |
With that fall of the hammer, the flat changed hands. | 0:05:58 | 0:06:01 | |
It's now owned by Jusar, a property developer from London | 0:06:01 | 0:06:05 | |
who paid £266,000. | 0:06:05 | 0:06:07 | |
I met him at the flat to find out his plans. | 0:06:15 | 0:06:18 | |
Have you got fantastic ideas for this flat? | 0:06:18 | 0:06:22 | |
I think so. We're gonna make quite some changes here. | 0:06:22 | 0:06:25 | |
Shall we go to the kitchen and have a chat? Follow me. | 0:06:25 | 0:06:28 | |
Jusar already has a portfolio of 60 properties around London. | 0:06:28 | 0:06:32 | |
He intends to rent this one out. | 0:06:32 | 0:06:34 | |
But he's having second thoughts about the accommodation. | 0:06:34 | 0:06:37 | |
I was gonna leave it as a one-bedroomed flat | 0:06:37 | 0:06:40 | |
but having another look around, I can potentially make it a two-bedroomed flat. | 0:06:40 | 0:06:45 | |
Hopefully it will generate a better return for me in the long run. | 0:06:45 | 0:06:49 | |
If it sells as a two-bedroomed, it'll be more attractive. | 0:06:49 | 0:06:52 | |
I'm disappointed you're going to do that. | 0:06:52 | 0:06:55 | |
I walked in here and straight away loved the whole feel | 0:06:55 | 0:06:58 | |
-of that grand room. -Yeah. | 0:06:58 | 0:07:01 | |
Where will your kitchen go? | 0:07:01 | 0:07:02 | |
I'm gonna move it into the lounge area. | 0:07:02 | 0:07:05 | |
The fashion around here, I find, is that people want to have a social aspect to the kitchen. | 0:07:05 | 0:07:11 | |
They want to cook for their friends as well as watch TV or whatever. | 0:07:11 | 0:07:17 | |
I think it will spoil the dynamics of that room. | 0:07:17 | 0:07:20 | |
-It's such a spectacular room. -Sure. | 0:07:20 | 0:07:22 | |
Your kitchen's there so you need a table and chairs. | 0:07:22 | 0:07:26 | |
-Do you think that room can take it? -I think so. | 0:07:26 | 0:07:28 | |
People who live round here are gonna grab bites or have TV dinners. | 0:07:28 | 0:07:32 | |
Rather than have a formal dining table and chairs, cos it's quite a small room, | 0:07:32 | 0:07:37 | |
I'm gonna have a large coffee table so they can put their feet up. | 0:07:37 | 0:07:41 | |
The tenants you need are people that don't eat dinner! | 0:07:41 | 0:07:44 | |
-Happy to sit in front of the TV! -Microwave dinners! | 0:07:44 | 0:07:47 | |
He plans to convert the kitchen into a second bedroom. | 0:07:47 | 0:07:51 | |
But I reckon that'll be a tight squeeze. | 0:07:51 | 0:07:53 | |
You think this will suffice as a bedroom? It's really small! | 0:07:56 | 0:08:00 | |
It's tiny. I wouldn't live in here. I plan to move this wall here. | 0:08:00 | 0:08:04 | |
Two or three feet to slightly widen this room. | 0:08:04 | 0:08:07 | |
Do you honestly think that then this bedroom would be a good size? | 0:08:07 | 0:08:11 | |
I think it'll be a reasonable size. Technically a double bedroom. | 0:08:11 | 0:08:16 | |
And you're dead set on that? Have you thought it through? | 0:08:16 | 0:08:19 | |
I think so. | 0:08:19 | 0:08:20 | |
I think so. It's changed the budget a bit, | 0:08:20 | 0:08:24 | |
but in the long run it'll be better value. | 0:08:24 | 0:08:27 | |
'How much does he think it'll cost to convert to two beds?' | 0:08:27 | 0:08:32 | |
I think round about 25,000. I don't really want to spend more than that. | 0:08:32 | 0:08:36 | |
A lot of it is labour. | 0:08:36 | 0:08:38 | |
How long do you think it will take you to change the layout now? | 0:08:38 | 0:08:42 | |
With the new format, I'm guessing it'll take three to four weeks. | 0:08:42 | 0:08:47 | |
'Well, a quick turnaround for this fast-food flat, | 0:08:47 | 0:08:51 | |
'where the microwave looks like it's going to rule.' | 0:08:51 | 0:08:55 | |
There's no doubt about it. Jusar spent a lot of money on this flat at auction. | 0:08:56 | 0:09:00 | |
I know his plans to turn it into a two-bedroomed property | 0:09:00 | 0:09:04 | |
will be worthwhile in the long run. | 0:09:04 | 0:09:06 | |
I just can't help thinking this place really works as it is. | 0:09:06 | 0:09:10 | |
Let's see what happens when we come back later in the programme. | 0:09:10 | 0:09:14 | |
This is Crewe, where business is booming - | 0:09:18 | 0:09:21 | |
a good sign as it makes it a smart place to invest. | 0:09:21 | 0:09:26 | |
Well, former commercial property | 0:09:26 | 0:09:27 | |
can often throw up interesting residential development opportunities, | 0:09:27 | 0:09:31 | |
and I think there's one of those here in the west end of Crewe. | 0:09:31 | 0:09:35 | |
It's a former taxi offices. | 0:09:35 | 0:09:37 | |
It's got a guide price of £75,000. | 0:09:37 | 0:09:40 | |
Not much from the outside, but you never know. | 0:09:40 | 0:09:42 | |
This two-storey former taxi office | 0:09:44 | 0:09:47 | |
may sit on a main road with no easy parking at the front, | 0:09:47 | 0:09:50 | |
but at the back there's not only a flat-roof extension but also a large free car park. | 0:09:50 | 0:09:56 | |
That's quite a bonus but the best is yet to come. | 0:09:56 | 0:10:01 | |
The great news is that this property already comes | 0:10:03 | 0:10:06 | |
with planning permission for a one-bedroom flat downstairs and a two-bedroom flat upstairs. | 0:10:06 | 0:10:12 | |
So what have we got, then? This is what I guess was the main taxi office. | 0:10:12 | 0:10:16 | |
This is going to be a bedroom on the left-hand side | 0:10:16 | 0:10:19 | |
and a living room, like a through living room, on the right. | 0:10:19 | 0:10:22 | |
So through into what is going to be the kitchen area. | 0:10:22 | 0:10:25 | |
That wall is coming out. So is this one, which is going to create a really nice sort of open-plan area, | 0:10:25 | 0:10:32 | |
which for a small flat is going to give it a big feeling of space. | 0:10:32 | 0:10:36 | |
But the key is closing off the existing entrance and putting a new door here, | 0:10:36 | 0:10:41 | |
then a doorway leading through to the new bathroom there. | 0:10:41 | 0:10:45 | |
So you've got bathroom there, kitchen, open-plan living area. Really nice plan. | 0:10:45 | 0:10:49 | |
Let's take a look upstairs. | 0:10:49 | 0:10:52 | |
So, with a bit of sorting, this hotchpotch area could be turned into a decent one-bedroom flat. | 0:10:52 | 0:10:58 | |
That's all fairly encouraging and so is the top floor. | 0:10:58 | 0:11:02 | |
Well, this is a bit of a turn-up for the books - | 0:11:03 | 0:11:06 | |
right at the top, an extra room. | 0:11:06 | 0:11:07 | |
You can't call this a bedroom because it doesn't meet building regulations. | 0:11:07 | 0:11:12 | |
Staircase way too narrow and far too steep. | 0:11:12 | 0:11:15 | |
But also the head height. To make it a proper room, | 0:11:15 | 0:11:18 | |
it has to have a certain percentage above a certain height. | 0:11:18 | 0:11:21 | |
I don't think it meets that but a useful space and you'd have to ask yourself, | 0:11:21 | 0:11:25 | |
is it worth converting it into a bedroom, getting planning permission? | 0:11:25 | 0:11:29 | |
There's certainly space to go into the eaves that way, like here, | 0:11:29 | 0:11:32 | |
but you have got issues with things like the floor, because I don't think... | 0:11:32 | 0:11:36 | |
..it's terribly strong at the moment. | 0:11:38 | 0:11:40 | |
In practical terms, that means you'd have to replace the entire floor | 0:11:42 | 0:11:47 | |
with load-bearing beams which would put quite a strain on your budget. | 0:11:47 | 0:11:51 | |
One thing which might influence your decision to get planning permission | 0:11:51 | 0:11:55 | |
to convert that to a bedroom is what's going on down here on the first floor, | 0:11:55 | 0:12:00 | |
because the plan is to convert it into a two-bedroom flat. | 0:12:00 | 0:12:03 | |
You know how I said I thought the plans were downstairs were great? | 0:12:03 | 0:12:07 | |
Not so here. What have we got, basically? Two bedrooms. | 0:12:07 | 0:12:09 | |
This is going to be the lounge area so you've got | 0:12:09 | 0:12:12 | |
a set of stairs coming into it, a set of stairs going out of it. | 0:12:12 | 0:12:16 | |
But that isn't the bad bit. | 0:12:16 | 0:12:17 | |
The really bad it is in here. | 0:12:17 | 0:12:19 | |
You've got a tiny space which is currently the bathroom. | 0:12:19 | 0:12:22 | |
It's about 10ft by 4ft and the plan is to convert this into | 0:12:22 | 0:12:27 | |
the bathroom toilet and that bit, the kitchen of this flat. | 0:12:27 | 0:12:32 | |
For a two-bedroom flat! You've gotta be kidding! | 0:12:32 | 0:12:35 | |
This is bonkers. | 0:12:35 | 0:12:36 | |
There's not enough space to swing a cat here, let alone a frying pan. | 0:12:36 | 0:12:40 | |
I can't help feeling there must be a better option for the layout of this two-bedroom flat. | 0:12:40 | 0:12:45 | |
Well, maybe not the most glamorous of properties, but you know what? | 0:12:48 | 0:12:51 | |
It's a really good investment one to go for. | 0:12:51 | 0:12:54 | |
You could convert those flats and rent them out for a bit of a profit | 0:12:54 | 0:12:57 | |
or do them up and sell them on. | 0:12:57 | 0:12:59 | |
Either way, I reckon it's a good one to go for. | 0:12:59 | 0:13:02 | |
Let's see who spots the opportunity at auction. | 0:13:02 | 0:13:04 | |
Lot 24, 118 West Street, Crewe, this time. | 0:13:07 | 0:13:12 | |
60 then, start me at 60. 60 I'm bid. Thank you. | 0:13:12 | 0:13:14 | |
At £60,000, for lot 24. | 0:13:14 | 0:13:16 | |
Opening bid of 60. | 0:13:16 | 0:13:18 | |
£61,000 waving at the back. | 0:13:19 | 0:13:21 | |
At £61,000. 62 is it now? 62. | 0:13:21 | 0:13:25 | |
63 is it? | 0:13:25 | 0:13:27 | |
£63,000. 64. | 0:13:28 | 0:13:31 | |
65. 66. | 0:13:31 | 0:13:34 | |
67. 68. | 0:13:34 | 0:13:37 | |
69. | 0:13:37 | 0:13:39 | |
The half then? 69 and a half? | 0:13:39 | 0:13:42 | |
70. Another half? | 0:13:42 | 0:13:45 | |
£70,000, then the bid's left. | 0:13:45 | 0:13:47 | |
Coming back in at £70,000 for Lot 24. Are we all done? | 0:13:47 | 0:13:53 | |
At £70,000 then. | 0:13:53 | 0:13:55 | |
You bought it, sir. Well done. | 0:13:56 | 0:13:59 | |
So for £5,000 less than the guide price, | 0:13:59 | 0:14:02 | |
the new owner of the old taxi office is David. | 0:14:02 | 0:14:06 | |
He was born locally and has recently returned to Crewe to open a pub | 0:14:06 | 0:14:10 | |
after a career as a management accountant. | 0:14:10 | 0:14:13 | |
With the pub now running smoothly, | 0:14:13 | 0:14:15 | |
he's finally given in to the old ambition to develop property. | 0:14:15 | 0:14:19 | |
# Oh, how I want to be free | 0:14:19 | 0:14:21 | |
# Oh, how I want to break free! # | 0:14:23 | 0:14:27 | |
Purchasing an ex-commercial property | 0:14:27 | 0:14:30 | |
that has already got planning permission | 0:14:30 | 0:14:32 | |
certainly gives David a good chance of success. | 0:14:32 | 0:14:35 | |
But he isn't too impressed with the proposed layout for the top flat. | 0:14:35 | 0:14:39 | |
When it comes to the upstairs, I think there's an opportunity, | 0:14:39 | 0:14:42 | |
if I can get permission to do it, | 0:14:42 | 0:14:44 | |
to improve things substantially on what was originally planned. | 0:14:44 | 0:14:48 | |
And then what will you do then? What would your plans for that...? | 0:14:48 | 0:14:52 | |
-Upstairs? -Yeah. | 0:14:52 | 0:14:53 | |
Get building regs for the loft space to be used as a proper bedroom. | 0:14:53 | 0:14:58 | |
What is currently the second bedroom would then become a kitchen-diner, | 0:14:58 | 0:15:02 | |
so it will all become a big, sort of open-plan area. | 0:15:02 | 0:15:06 | |
And then what was proposed to be the kitchen, | 0:15:06 | 0:15:09 | |
-the toilet and the bathroom... -Disaster! | 0:15:09 | 0:15:12 | |
..would be just the bathroom. | 0:15:12 | 0:15:14 | |
Right. Much better plan. | 0:15:14 | 0:15:17 | |
-Fingers crossed. -Absolutely! | 0:15:17 | 0:15:19 | |
-What about downstairs? Do you like the plans for downstairs? -Yeah. | 0:15:19 | 0:15:22 | |
We're sticking to the plans for downstairs. | 0:15:22 | 0:15:24 | |
David has spoken to the council about these potential changes | 0:15:24 | 0:15:29 | |
and may not have to go through the planning process again, | 0:15:29 | 0:15:32 | |
which will save him time and money. | 0:15:32 | 0:15:34 | |
What about budgets for what you're planning? | 0:15:34 | 0:15:37 | |
Well, as you know, the building cost myself £70,000. | 0:15:37 | 0:15:42 | |
I'm working to a budget of 20 for materials and labour for everything, | 0:15:42 | 0:15:48 | |
so that'll make me 90 plus 1,000 or 2,000 for legal costs and things. | 0:15:48 | 0:15:52 | |
So I'm working to a budget of about 92, £93,000. | 0:15:52 | 0:15:55 | |
Have you got somebody lined up to do the work? | 0:15:55 | 0:15:58 | |
Yes. Yeah, I've got a good friend, Mick, | 0:15:58 | 0:16:00 | |
who's one of the friends who lives in... | 0:16:00 | 0:16:02 | |
Well, used to live in the area, knows it really well, | 0:16:02 | 0:16:05 | |
so he knows the kind of... | 0:16:05 | 0:16:06 | |
He's done these kind of properties before. | 0:16:06 | 0:16:09 | |
He knows what he's doing, so I'm happy to work with him. | 0:16:09 | 0:16:11 | |
-Is he a builder? -Oh yes. Yeah. | 0:16:11 | 0:16:14 | |
So what does builder Mick think of David's purchase? | 0:16:14 | 0:16:20 | |
One of the main problems we've got in this house is leaks and damps. | 0:16:21 | 0:16:25 | |
One of the big problems is on the wall, | 0:16:25 | 0:16:27 | |
and out here, there's the rendering, the water's getting behind it | 0:16:27 | 0:16:31 | |
and soaking it up like a sponge. | 0:16:31 | 0:16:32 | |
Plus the soil starts leaking and on the roof. | 0:16:32 | 0:16:36 | |
So what I'll have to do is take all this back | 0:16:36 | 0:16:39 | |
and redo it and reseal the wall. | 0:16:39 | 0:16:41 | |
With builder Mick on hand and armed with a 20-grand budget, | 0:16:41 | 0:16:45 | |
the ever-optimistic David seems ready to take on this taxi office. | 0:16:45 | 0:16:49 | |
Let's hope it's not too taxing. | 0:16:49 | 0:16:52 | |
As David goes to prove, | 0:16:52 | 0:16:53 | |
it's never too late to start in the property development game | 0:16:53 | 0:16:57 | |
and his management background has meant he has all his ducks in a row | 0:16:57 | 0:17:01 | |
and I'm sure he will make a great success of this project. | 0:17:01 | 0:17:04 | |
It's a challenge though. Find out how he gets on later in the show. | 0:17:04 | 0:17:08 | |
Well, days, weeks and months have passed, | 0:17:10 | 0:17:14 | |
so work should have started on our properties. | 0:17:14 | 0:17:17 | |
Will there be brick dust and ladders all over the place, | 0:17:17 | 0:17:20 | |
-or will the properties look brand-new? -Let's find out. | 0:17:20 | 0:17:23 | |
MUSIC: THEME TO "MATCH OF THE DAY" | 0:17:23 | 0:17:26 | |
We've shot back to Highbury in north London, | 0:17:26 | 0:17:29 | |
the once-famous home of Arsenal football club. | 0:17:29 | 0:17:31 | |
This one-bed top-floor flat overlooked the old ground | 0:17:31 | 0:17:35 | |
and was bought for 266 grand by Jusar. | 0:17:35 | 0:17:38 | |
There must have been a great team-talk by Jusar | 0:17:42 | 0:17:45 | |
because inside, what a change! | 0:17:45 | 0:17:49 | |
The large living room has a new kitchen at one end. | 0:17:49 | 0:17:52 | |
Yet surprisingly, it still feels really big. | 0:17:52 | 0:17:56 | |
The original bedroom remains | 0:17:59 | 0:18:02 | |
although that has been extended into what was the bathroom. | 0:18:02 | 0:18:05 | |
And a new bathroom's been installed. But there's no sign of that second bedroom. | 0:18:08 | 0:18:14 | |
So has Jusar had a rethink? | 0:18:14 | 0:18:17 | |
I've changed the layout of the flat. | 0:18:17 | 0:18:20 | |
We only decided that after we started work. | 0:18:20 | 0:18:23 | |
We've removed some of the walls - the bedroom and bathroom walls - | 0:18:23 | 0:18:27 | |
and decided to keep it as a bigger spacious bedroom | 0:18:27 | 0:18:30 | |
as opposed to having two cramped bedrooms. | 0:18:30 | 0:18:32 | |
The other thing is I've relocated the kitchen to the lounge, | 0:18:32 | 0:18:37 | |
the bathroom to where the old kitchen was. | 0:18:37 | 0:18:39 | |
We decided not to have a full-scale bathtub and everything. | 0:18:39 | 0:18:43 | |
We just put an extremely large shower cubicle. | 0:18:43 | 0:18:48 | |
Jusar had planned to move just the stud wall between the kitchen and bedroom | 0:18:48 | 0:18:53 | |
but ended up totally removing the wall between the bathroom and bedroom. | 0:18:53 | 0:18:57 | |
Right, what we decided on this room was to open it up. | 0:18:58 | 0:19:03 | |
There was a stud wall here and a stud wall here. | 0:19:03 | 0:19:06 | |
This housed the bathroom with the bathtub behind me. | 0:19:06 | 0:19:09 | |
Adjacent to that we had the storage cupboard for the water tank. | 0:19:09 | 0:19:14 | |
We initially removed the two walls and decided it made a nice living space. | 0:19:14 | 0:19:19 | |
We also looked at the ceiling and decided | 0:19:19 | 0:19:21 | |
there was a lot of space hidden there on a suspended ceiling. | 0:19:21 | 0:19:25 | |
So we removed all the tiles | 0:19:25 | 0:19:27 | |
and you can see it's more or less the same height as the original bedroom ceiling. | 0:19:27 | 0:19:32 | |
As he was looking up to the heavens, Jusar was blessed with a nice surprise. | 0:19:33 | 0:19:38 | |
The hidden potential I found in this flat was the loft space. | 0:19:38 | 0:19:42 | |
It's much bigger than I imagined. | 0:19:42 | 0:19:45 | |
It's head height and the full width of the building. | 0:19:45 | 0:19:49 | |
So there's plenty of space for another bedroom up there. | 0:19:49 | 0:19:52 | |
It's a future project. It will increase the value of the property significantly. | 0:19:52 | 0:19:57 | |
Was it luck or a developer's hunch? | 0:19:57 | 0:19:59 | |
Either way, it looks as if Jusar could well get that second bedroom after all. | 0:19:59 | 0:20:04 | |
I was really concerned about putting the kitchen into that lovely living room. | 0:20:04 | 0:20:08 | |
But it actually remains quite spacious | 0:20:08 | 0:20:10 | |
thanks to another space-saving trick. | 0:20:10 | 0:20:13 | |
What I've done here, cos I felt this was quite narrow and too long, | 0:20:14 | 0:20:18 | |
is I've brought this cupboard storage back about a foot and a half. | 0:20:18 | 0:20:24 | |
I've retained the storage but not as much. It was excessive for this flat. | 0:20:24 | 0:20:28 | |
So we've got a bit of extra living area here. | 0:20:28 | 0:20:31 | |
The bathroom has an expensive shower, | 0:20:31 | 0:20:33 | |
though to my mind it doesn't make up for the lack of a bath. However, | 0:20:33 | 0:20:38 | |
the finish throughout is excellent. | 0:20:38 | 0:20:40 | |
All the fittings are mid-range, not basic DIY, | 0:20:40 | 0:20:44 | |
and the whole flat will have solid wood flooring, not just a laminate. | 0:20:44 | 0:20:48 | |
So how's the budget looking? | 0:20:48 | 0:20:50 | |
The budget was originally set for between 20 and £25,000. | 0:20:50 | 0:20:54 | |
That was for the entire flat. | 0:20:54 | 0:20:56 | |
The final cost, including materials and labour | 0:20:56 | 0:20:59 | |
has come to £19,100, so I'm quite pleased with that. Under budget | 0:20:59 | 0:21:03 | |
and to a layout which is slightly better than I'd originally planned. | 0:21:03 | 0:21:08 | |
Jusar plans to rent this flat out, | 0:21:09 | 0:21:12 | |
adding it to his portfolio of 60 properties | 0:21:12 | 0:21:14 | |
with 100 tenants. | 0:21:14 | 0:21:16 | |
Time to discover what two local property experts think it could fetch. | 0:21:16 | 0:21:20 | |
To sell the property you'd be looking for 290,000. | 0:21:36 | 0:21:39 | |
'Oh, dear. He'll barely break even.' | 0:21:39 | 0:21:43 | |
A little bit less than I'd expected. | 0:21:43 | 0:21:45 | |
I was looking more like 310, 320. | 0:21:45 | 0:21:48 | |
But I'm not looking to sell it immediately, anyway, | 0:21:48 | 0:21:52 | |
so it's just an academic figure. | 0:21:52 | 0:21:55 | |
'Right. Well, let's check out the rental return.' | 0:21:55 | 0:21:58 | |
On the rental market, you could achieve about £1,350 per month. | 0:21:58 | 0:22:02 | |
That's pretty much in line with what I was expecting. | 0:22:02 | 0:22:05 | |
I'd gauged it at around £300 a week. | 0:22:05 | 0:22:08 | |
It's pretty much as I thought. | 0:22:08 | 0:22:11 | |
'But this flat will remain with one bedroom | 0:22:11 | 0:22:13 | |
'until such a time as the loft conversion adds that second one.' | 0:22:13 | 0:22:17 | |
Back in Crewe, one-time accountant turned publican, David | 0:22:24 | 0:22:28 | |
had bought an old taxi office for 70 grand. | 0:22:28 | 0:22:31 | |
Well, from the outside, these new windows and doors | 0:22:31 | 0:22:35 | |
make it more like a residential property. | 0:22:35 | 0:22:38 | |
Inside, it's been opened up to make space | 0:22:38 | 0:22:41 | |
for the bedroom and kitchen diner, as David explains. | 0:22:41 | 0:22:45 | |
Well, as you remember, this was one big taxi office. | 0:22:45 | 0:22:48 | |
This wall wasn't here. | 0:22:48 | 0:22:49 | |
There was a wall here and a Saniloo toilet | 0:22:49 | 0:22:53 | |
and then another wall, door through there, | 0:22:53 | 0:22:55 | |
into a small back office. | 0:22:55 | 0:22:57 | |
We decided to take all of those away, create the bedroom, | 0:22:57 | 0:23:00 | |
a lovely living area, and a kitchen, | 0:23:00 | 0:23:02 | |
and a dining area, and we're very happy with it now. | 0:23:02 | 0:23:06 | |
It's quite an open and airy space. | 0:23:06 | 0:23:07 | |
David was always happy to follow the agreed plans | 0:23:07 | 0:23:11 | |
for the downstairs flat, | 0:23:11 | 0:23:12 | |
but the upstairs apartment was a different story. | 0:23:12 | 0:23:16 | |
Making all these changes happen was David's builder mate, Mick. | 0:23:16 | 0:23:25 | |
As you can see up here, we've opened it all out. | 0:23:27 | 0:23:30 | |
We took this wall out here to give it more room into the kitchen, | 0:23:30 | 0:23:33 | |
and along here. | 0:23:33 | 0:23:35 | |
This originally on the plans was gonna be a kitchen-bathroom. | 0:23:35 | 0:23:40 | |
We've just made it into a nice comfortable bathroom. | 0:23:40 | 0:23:43 | |
David has sacrificed a bedroom to get a separate bathroom and kitchen | 0:23:43 | 0:23:48 | |
and has definitely come up with a better configuration than the original plans, | 0:23:48 | 0:23:52 | |
but hadn't he hoped to get that second bedroom back | 0:23:52 | 0:23:55 | |
by using the loft room? | 0:23:55 | 0:23:56 | |
We originally intended to get permission | 0:23:56 | 0:24:00 | |
to make that second bedroom | 0:24:00 | 0:24:02 | |
to replace the bedroom that we lost by moving the kitchen. | 0:24:02 | 0:24:05 | |
But when it came to getting building regulations | 0:24:05 | 0:24:07 | |
and the work that we would have had to have done to achieve those, | 0:24:07 | 0:24:10 | |
we decided not to do it. | 0:24:10 | 0:24:12 | |
Apart from that, the staircase that came down into this room | 0:24:12 | 0:24:16 | |
spoilt this space, | 0:24:16 | 0:24:18 | |
so we decided to do away with that idea, | 0:24:18 | 0:24:20 | |
do away with the staircase, replace it with a loft ladder | 0:24:20 | 0:24:23 | |
and make this a whole presentable living area. | 0:24:23 | 0:24:26 | |
I think that was a sensible idea. | 0:24:26 | 0:24:28 | |
Getting permission for the upper room to be converted | 0:24:28 | 0:24:31 | |
into usable living space would have cost both time and money. | 0:24:31 | 0:24:34 | |
It probably wouldn't have massively increased David's return, | 0:24:34 | 0:24:38 | |
so I think he and his builder Mick have chosen the best compromise. | 0:24:38 | 0:24:41 | |
Mick is an experienced builder but David was a rookie project manager. | 0:24:41 | 0:24:46 | |
On a conversion like this, | 0:24:46 | 0:24:48 | |
there is a fair number of regulations to deal with. | 0:24:48 | 0:24:51 | |
Not easy when you're new to it all. | 0:24:51 | 0:24:54 | |
Well, this has been a very steep learning curve for me, | 0:24:54 | 0:24:59 | |
and the one thing that I would definitely do next time | 0:24:59 | 0:25:03 | |
is sort out the utilities before... | 0:25:03 | 0:25:06 | |
Or as early as I can, let's put it that way. | 0:25:06 | 0:25:09 | |
Because that's one of the things that's delayed us. | 0:25:09 | 0:25:12 | |
But has that steep learning curve | 0:25:12 | 0:25:17 | |
meant this project has cut corners and cost him money? | 0:25:17 | 0:25:20 | |
Time to ask the agents. | 0:25:20 | 0:25:22 | |
David paid 70,000 for the whole building at auction | 0:25:35 | 0:25:39 | |
and has spent £25,000 turning it into two separate flats. | 0:25:39 | 0:25:43 | |
So, what could he get for each? | 0:25:43 | 0:25:47 | |
I think there is very little to differentiate in values on resale. | 0:25:47 | 0:25:52 | |
But I would suggest that they are both between | 0:25:52 | 0:25:55 | |
probably £65,000 to £70,000. | 0:25:55 | 0:25:56 | |
David plans to rent the flats out for a few years | 0:25:56 | 0:26:00 | |
and then, as the area continues to improve, sell them on. | 0:26:00 | 0:26:04 | |
So, can the rent sustain a mortgage here? | 0:26:04 | 0:26:06 | |
For rental purposes, what I would suggest | 0:26:06 | 0:26:09 | |
is a figure of £375 per month for each flat. | 0:26:09 | 0:26:12 | |
Very good return, I'm happy with that. | 0:26:12 | 0:26:14 | |
David hummed and hawed about doing property renovations | 0:26:19 | 0:26:22 | |
for a number of years. | 0:26:22 | 0:26:23 | |
I've had the opportunity to do it for the last 10, 15 years, | 0:26:23 | 0:26:27 | |
but actually, I've got on with it now and got stuck in. | 0:26:27 | 0:26:30 | |
I really enjoyed it. I found it a positive experience. | 0:26:30 | 0:26:32 | |
And to actually see something develop in front of you | 0:26:32 | 0:26:36 | |
and be created, and be part of it, is really good. | 0:26:36 | 0:26:40 | |
I'm a happy accountant. | 0:26:40 | 0:26:41 | |
Well, the numbers have definitely added up for this happy accountant. | 0:26:41 | 0:26:46 | |
And after putting it off for so long, | 0:26:46 | 0:26:48 | |
David is now firmly bitten by the property bug. | 0:26:48 | 0:26:51 | |
# It's not too late... # | 0:26:51 | 0:26:55 | |
We'll be back next time for more Homes Under The Hammer. | 0:27:01 | 0:27:04 | |
-Join us then for more action from the auction. -See you then. -Bye-bye. | 0:27:04 | 0:27:08 | |
Subtitles by Red Bee Media Ltd | 0:27:17 | 0:27:19 | |
E-mail [email protected] | 0:27:19 | 0:27:20 |