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-Welcome to the programme. -We enjoy dabbling in the property market | 0:00:02 | 0:00:05 | |
AND getting a good deal along the way. | 0:00:05 | 0:00:07 | |
But it's not always that easy. | 0:00:07 | 0:00:09 | |
So what can you do to give yourself the best chance of a bargain? | 0:00:09 | 0:00:12 | |
Buy your home under the hammer! | 0:00:12 | 0:00:14 | |
In Wales, there's a house | 0:00:39 | 0:00:42 | |
which could be the perfect long-term investment. | 0:00:42 | 0:00:44 | |
You know, straight away, | 0:00:44 | 0:00:46 | |
this place is crying out "rental property" for me. | 0:00:46 | 0:00:49 | |
What has this one-bedroomed flat in central London got going for it? | 0:00:51 | 0:00:55 | |
This flat doesn't have views, it doesn't have space, | 0:00:55 | 0:00:58 | |
it's got no garden. | 0:00:58 | 0:01:00 | |
These properties went to auction and we'll find out who bought them | 0:01:00 | 0:01:04 | |
and what they paid for them when they went under the hammer. | 0:01:04 | 0:01:08 | |
You all done? | 0:01:08 | 0:01:09 | |
Even on a cold, wet, day like today, | 0:01:12 | 0:01:15 | |
it's clear that Cardiff has really been transformed by the developers. | 0:01:15 | 0:01:19 | |
New state-of-the-art buildings are going up all over the place, | 0:01:19 | 0:01:22 | |
but has this regeneration extended to the city's housing stock? | 0:01:22 | 0:01:27 | |
Well, this is Donald Street in Roath, | 0:01:27 | 0:01:30 | |
and 'tis but a short duck's flight from Cardiff city centre. | 0:01:30 | 0:01:35 | |
What's on offer is something very intriguing. | 0:01:35 | 0:01:38 | |
It's a mid-terrace, it's got four bedrooms, two reception rooms, | 0:01:38 | 0:01:43 | |
two loos and a large garden, all for a guide price of £155,000. | 0:01:43 | 0:01:49 | |
You'd be quackers not to investigate further! | 0:01:49 | 0:01:52 | |
Well, the first thing you notice about the exterior | 0:01:52 | 0:01:55 | |
is the very small front area and lack of off-street parking, | 0:01:55 | 0:01:58 | |
which could be a pain, especially on wet days like this. | 0:01:58 | 0:02:02 | |
The windows, though, are in reasonable condition | 0:02:02 | 0:02:04 | |
but a lick of paint wouldn't go amiss. | 0:02:04 | 0:02:06 | |
So, what's it like inside? | 0:02:07 | 0:02:10 | |
Well, at first glance, not too bad. | 0:02:10 | 0:02:13 | |
Pretty stark decoration, but that's easily changed. | 0:02:13 | 0:02:15 | |
You've got a front sitting room there which I suppose could be another bedroom | 0:02:15 | 0:02:19 | |
and then through into the most amazing part of this house... | 0:02:19 | 0:02:22 | |
this massive lounge/kitchen. | 0:02:22 | 0:02:26 | |
Back there you've got a bathroom and another toilet. | 0:02:26 | 0:02:29 | |
You know, straight away, this place is crying out "rental property" for me. | 0:02:29 | 0:02:34 | |
I mean, this would be a fantastic sort of communal area, you've got the four bedrooms, possibly five, | 0:02:34 | 0:02:40 | |
you're in the right area in terms of student population. | 0:02:40 | 0:02:43 | |
You know, already I'm saying this would be a great property to feather your nest. | 0:02:43 | 0:02:49 | |
This layout is all about communal living. | 0:02:51 | 0:02:54 | |
It's got that large lounge area with a spacious kitchen, | 0:02:54 | 0:02:57 | |
and although not ideally sited, | 0:02:57 | 0:02:59 | |
the bathroom is a good size and has a shower. | 0:02:59 | 0:03:02 | |
It's certainly nice weather for ducks! | 0:03:05 | 0:03:09 | |
-Anyway, at the rear of the property there is a garden. -Now that's interesting. | 0:03:09 | 0:03:13 | |
Well, intrinsically not but I'll explain why in a second. | 0:03:13 | 0:03:16 | |
First of all, it's nice to see that there is a natural stone wall here, a nice little feature. | 0:03:16 | 0:03:21 | |
Meanwhile, the garden. | 0:03:21 | 0:03:22 | |
Well, it depends really on whether or not you are looking at this place as a family home or rental property. | 0:03:22 | 0:03:27 | |
If you're thinking about it as a family home, the garden is somewhere for the kids to play. | 0:03:27 | 0:03:32 | |
However, if you're thinking about renting this place out, | 0:03:32 | 0:03:34 | |
from my experience, people who rent possibly, especially students, don't actually look after gardens, | 0:03:34 | 0:03:40 | |
so it ends up looking something like this and begins to be a bit of a pain | 0:03:40 | 0:03:44 | |
in which case, you might think about paving it. | 0:03:44 | 0:03:46 | |
But I suppose it is a nice thing to have and you can always think about putting a duck pond in! | 0:03:46 | 0:03:52 | |
Quack, quack! | 0:03:52 | 0:03:54 | |
There are three... Enough duck puns already! | 0:03:54 | 0:03:57 | |
..good sized bedrooms upstairs but no bathroom. | 0:03:57 | 0:04:00 | |
That is reasonably acceptable for a student let, | 0:04:00 | 0:04:03 | |
but not for a family house, | 0:04:03 | 0:04:04 | |
so the more I see this place, the more it looks like it used to be student digs. | 0:04:04 | 0:04:10 | |
Phew! Well, right at the top of the house is the final bedroom... | 0:04:14 | 0:04:18 | |
an attic room. Now, when I was a student, I had a room just like this. | 0:04:18 | 0:04:23 | |
I love attic bedrooms. They're great! | 0:04:23 | 0:04:25 | |
So obviously the whole house has been utilised to the max. | 0:04:25 | 0:04:28 | |
Nice added bonus... | 0:04:28 | 0:04:30 | |
the brand-new bed and some of the other furniture looks reasonable. | 0:04:30 | 0:04:34 | |
You get lots of light coming in through the windows, so all in all, a really nice room | 0:04:34 | 0:04:39 | |
and from up here you also get to see the fact that the roof looks in really good condition. | 0:04:39 | 0:04:43 | |
In fact, that is a new extension which was built onto the property so all in all, lots of boxes ticked. | 0:04:43 | 0:04:49 | |
However, the law has changed in recent years | 0:04:49 | 0:04:52 | |
and if this property was now to be used as a house of multiple occupancy, or HMO, | 0:04:52 | 0:04:57 | |
then safety standards would need to be complied with. | 0:04:57 | 0:05:00 | |
These would include fire doors, integrated smoke alarm systems | 0:05:00 | 0:05:05 | |
and emergency lighting which can substantially raise the outlay. | 0:05:05 | 0:05:09 | |
But this is offset by the fact that the more people you can | 0:05:09 | 0:05:13 | |
let the house to, the greater your rental return. | 0:05:13 | 0:05:16 | |
Well, this is a great rental property. | 0:05:16 | 0:05:18 | |
It's in the right area, and it's got the right number of rooms. | 0:05:18 | 0:05:21 | |
For £155,000, it's a good one to go for. Let's hit the auction. | 0:05:21 | 0:05:26 | |
Right. We're onto lot 50 now, the extended mid-terraced house, | 0:05:30 | 0:05:34 | |
potential investment here at 35 Donald Street, Roath, Cardiff. | 0:05:34 | 0:05:38 | |
Where will you be on that one then? | 0:05:38 | 0:05:40 | |
160? | 0:05:40 | 0:05:42 | |
160, I have 160, at 160, thank you. | 0:05:42 | 0:05:45 | |
At 160. 162. | 0:05:45 | 0:05:48 | |
162, 164 then, 164, at 164. | 0:05:48 | 0:05:51 | |
166, 166, 168. | 0:05:51 | 0:05:55 | |
170 here. | 0:05:55 | 0:05:56 | |
At 172, 174, 176, 174, 176 then. | 0:05:56 | 0:05:59 | |
At 174's on the right now, 174. | 0:05:59 | 0:06:01 | |
You're in line, be careful. At 174. | 0:06:01 | 0:06:04 | |
At 174, 175 is it? At £174,000 on my right hand side at 174 then. | 0:06:04 | 0:06:10 | |
At 174 then. | 0:06:10 | 0:06:12 | |
On my right at 174. | 0:06:12 | 0:06:14 | |
Can't quite do that. We're extremely close on that. | 0:06:14 | 0:06:17 | |
Another thousand and we'd be able to put a deal together. | 0:06:17 | 0:06:20 | |
The house didn't quite make its reserve, but was bought after | 0:06:20 | 0:06:25 | |
the auction for 175 grand by local electrician, Paul. | 0:06:25 | 0:06:30 | |
I met him back at the house to find out more. | 0:06:30 | 0:06:33 | |
-Paul, nice to meet you. -Hi. | 0:06:34 | 0:06:36 | |
What happened there, then? | 0:06:36 | 0:06:38 | |
I thought about all the other properties that were going through as well, | 0:06:38 | 0:06:42 | |
thought about what I had been thinking about for four years and not having actually done anything. | 0:06:42 | 0:06:48 | |
I sat in my van then for about 20 minutes and thought about myself and went over the sums that I'd | 0:06:48 | 0:06:53 | |
been doing and it seemed that it would still work out, just about, | 0:06:53 | 0:06:57 | |
if I went through with it anyway, so I gave it a go. | 0:06:57 | 0:07:00 | |
What was it about this house that made you think, | 0:07:00 | 0:07:03 | |
"This is the one that I'm finally going to have"? | 0:07:03 | 0:07:05 | |
I viewed a number of properties - | 0:07:05 | 0:07:07 | |
I think I looked at six - and this one was the best one of them all, by a long way. | 0:07:07 | 0:07:12 | |
A lot of the others were almost like building sites and I've worked on a number of building sites | 0:07:12 | 0:07:18 | |
so I didn't really fancy taking a chance or taking a risk | 0:07:18 | 0:07:21 | |
on looking at or purchasing a house that needed a lot of work. | 0:07:21 | 0:07:24 | |
-Talk me through the project plan. What's the plan of action? -I've had a couple of valuations already. | 0:07:24 | 0:07:30 | |
One of them was £190,000 as it stands, | 0:07:30 | 0:07:35 | |
and if I do the bathroom and kitchen, that would be £200,000. | 0:07:35 | 0:07:40 | |
That's not that much more than what I paid for it, | 0:07:40 | 0:07:44 | |
so I've now been considering talking to others on how much I can rent it out for. | 0:07:44 | 0:07:48 | |
It's around about £1,000 to £1,200, | 0:07:48 | 0:07:51 | |
so if I can rent it out for £1,200 here, that would be great. | 0:07:51 | 0:07:56 | |
It certainly would be a good buy then. | 0:07:56 | 0:07:59 | |
So it does look like Paul is going down the rental route. | 0:08:00 | 0:08:04 | |
He's put aside a maximum budget of £10,000 | 0:08:04 | 0:08:07 | |
and in this case, that should be a safe bet, | 0:08:07 | 0:08:10 | |
which is want you want on your first venture into property developing. | 0:08:10 | 0:08:13 | |
So what do your friends and family think about the fact that you've finally made the leap? | 0:08:14 | 0:08:20 | |
So far I haven't told too many of my friends. | 0:08:20 | 0:08:23 | |
There's only a few who are aware of it but my family, my sister, in particular - | 0:08:23 | 0:08:27 | |
I've been bending her ear on these things for a long time - she was chuffed to bits with it. | 0:08:27 | 0:08:31 | |
She was over the moon when she finally knew that I'd done something on it and purchased the property. | 0:08:31 | 0:08:36 | |
She came to have a look recently as well and she was very impressed with the house. | 0:08:36 | 0:08:41 | |
Now he can stop bending his sister's ear about making that leap. | 0:08:41 | 0:08:46 | |
He just needs to get on and do the work. | 0:08:46 | 0:08:49 | |
Four years of thinking about it, and he's finally bought | 0:08:49 | 0:08:52 | |
his first investment property, | 0:08:52 | 0:08:54 | |
but all credit to him, because making that first leap is always the hardest. | 0:08:54 | 0:08:58 | |
How's he going to get on? | 0:08:58 | 0:08:59 | |
Well, I reckon he's going to do really well, because this is a great property. | 0:08:59 | 0:09:03 | |
You can find out how he does with it later in the show. | 0:09:03 | 0:09:07 | |
For our next property, | 0:09:14 | 0:09:16 | |
We're in central London in Marylebone. | 0:09:16 | 0:09:18 | |
It's one of the chicest parts of town, | 0:09:18 | 0:09:21 | |
loved by both millionaires and celebrities. | 0:09:21 | 0:09:23 | |
This tucked-away area with a villagey feel | 0:09:23 | 0:09:26 | |
is home to the likes of Madonna, so I'm expecting something special. | 0:09:26 | 0:09:32 | |
So, just minutes away from all that excitement is Penfold Place. | 0:09:32 | 0:09:37 | |
Now remember, this is Central London. | 0:09:37 | 0:09:40 | |
It's Zone One, and prices are high. | 0:09:40 | 0:09:42 | |
So when a one-bed flat with a guide price of £155,000 is up for auction, | 0:09:42 | 0:09:48 | |
it gets the neighbours talking. | 0:09:48 | 0:09:50 | |
This flat is on the first floor, which means there aren't too many stairs to climb. | 0:09:50 | 0:09:55 | |
That's good news for buyers, and my legs! | 0:09:55 | 0:09:59 | |
This is a spacious reception area, which is good because you've got to think about putting a table in here | 0:09:59 | 0:10:06 | |
and a sofa. What I do like about this space is that it's double aspect, | 0:10:06 | 0:10:11 | |
which means you have two total different views. | 0:10:11 | 0:10:15 | |
Now there's no garden, but you have got a nice balcony, which does count for something. | 0:10:15 | 0:10:20 | |
It's not big enough to recreate the balcony scene from Romeo And Juliet, | 0:10:21 | 0:10:26 | |
but it is just about big enough for a potted plant or two. | 0:10:26 | 0:10:29 | |
You'd certainly need some fresh air, because this flat is filthy. | 0:10:29 | 0:10:33 | |
Sadly, the colour scheme is not from some fancy designer's paint chart. | 0:10:33 | 0:10:38 | |
That tobacco colour is all genuinely acquired. | 0:10:38 | 0:10:42 | |
# Smoke gets in your eyes... # | 0:10:42 | 0:10:45 | |
And I certainly wouldn't fancy a sandwich that had been prepared in here. | 0:10:45 | 0:10:49 | |
This kitchen is very small and cramped, but I do love the outlook onto that nice shared patio area. | 0:10:49 | 0:10:56 | |
Be quite nice in the summertime. | 0:10:56 | 0:10:58 | |
Now this kitchen, in my opinion, needs a minimalist makeover. | 0:10:58 | 0:11:02 | |
Some clever design will certainly make up for the lack of space. | 0:11:02 | 0:11:07 | |
You'll have to continue the clever design theme in the bedroom, too. | 0:11:07 | 0:11:10 | |
It's small, but then, what would you expect in a flat this central? | 0:11:10 | 0:11:14 | |
After all, the location is the main attraction. | 0:11:14 | 0:11:17 | |
This is definitely a fashionable part of town. | 0:11:17 | 0:11:21 | |
But this flat is more decked out in charity-shop attire than haute couture. | 0:11:21 | 0:11:26 | |
This flat doesn't have views, it doesn't have space, it's got no garden, | 0:11:26 | 0:11:30 | |
but it's in central London and it's got a fantastic postcode. | 0:11:30 | 0:11:34 | |
And let's face it, you're a black cab ride away from everything Central London has to offer. | 0:11:34 | 0:11:39 | |
Bond Street, please. | 0:11:39 | 0:11:42 | |
Right, lot 27 | 0:11:45 | 0:11:47 | |
is Bowmans Buildings, Penfold Place, Marylebone, London, NW1. | 0:11:47 | 0:11:52 | |
Leasehold flat. | 0:11:52 | 0:11:54 | |
Who'd like to start off on this? I don't know. 200,000? | 0:11:54 | 0:11:58 | |
205. 210. | 0:11:59 | 0:12:03 | |
215. 220. | 0:12:03 | 0:12:06 | |
225. 230. | 0:12:06 | 0:12:09 | |
226 - try and help. | 0:12:09 | 0:12:11 | |
226. 227, sir. 228. | 0:12:11 | 0:12:16 | |
227, with you. 228. | 0:12:16 | 0:12:19 | |
228, new spot. | 0:12:19 | 0:12:21 | |
229. | 0:12:21 | 0:12:22 | |
230. | 0:12:22 | 0:12:25 | |
231. Never stop on 230. 231. | 0:12:25 | 0:12:31 | |
231, well done. 232. | 0:12:31 | 0:12:34 | |
233. | 0:12:34 | 0:12:35 | |
Yes? 233. 234. | 0:12:35 | 0:12:39 | |
235. 236. | 0:12:39 | 0:12:42 | |
236? 237. | 0:12:43 | 0:12:46 | |
238. | 0:12:46 | 0:12:47 | |
238. | 0:12:47 | 0:12:49 | |
239. | 0:12:49 | 0:12:51 | |
240. | 0:12:51 | 0:12:52 | |
241. | 0:12:52 | 0:12:54 | |
242. | 0:12:54 | 0:12:56 | |
242. 243. | 0:12:56 | 0:12:58 | |
244. | 0:12:58 | 0:13:01 | |
244. 245. | 0:13:01 | 0:13:03 | |
246. | 0:13:03 | 0:13:05 | |
246? | 0:13:05 | 0:13:07 | |
247. | 0:13:07 | 0:13:09 | |
248. | 0:13:09 | 0:13:11 | |
248. | 0:13:11 | 0:13:12 | |
249. | 0:13:12 | 0:13:14 | |
250. 251. 251. 252. | 0:13:14 | 0:13:19 | |
251, back with you. 252? | 0:13:19 | 0:13:24 | |
251 - first time, second time, third and last time. Are you all done? | 0:13:24 | 0:13:29 | |
Sold - 251. Well done, madam. | 0:13:29 | 0:13:32 | |
The successful bidder was Chantana. | 0:13:32 | 0:13:36 | |
But she's just gone over the £250,000 stamp-duty threshold, | 0:13:36 | 0:13:40 | |
and that's going to hurt. | 0:13:40 | 0:13:42 | |
I caught up with her back at the flat to find out why she did that. | 0:13:42 | 0:13:47 | |
Because you paid £1,000 over the £250,000, | 0:13:47 | 0:13:52 | |
you had to pay eight grand stamp duty. | 0:13:52 | 0:13:55 | |
Now, how did that make you feel? | 0:13:55 | 0:13:57 | |
Oh, angry. I was very angry. | 0:13:57 | 0:14:00 | |
I admit, I didn't prepare well at all. | 0:14:00 | 0:14:03 | |
-Do you think you paid too much for this flat? -To be honest, yes, I do. | 0:14:03 | 0:14:07 | |
I do think I paid over my plan, | 0:14:07 | 0:14:11 | |
and my experience of the property that I've been looking around, | 0:14:11 | 0:14:17 | |
I would not have paid more than top price of 230,000. | 0:14:17 | 0:14:22 | |
-So it's clear to say you just got carried away on auction day? -Yes. | 0:14:22 | 0:14:27 | |
But I'm intrigued. | 0:14:27 | 0:14:28 | |
She's originally from Thailand, so what brought her to the UK? | 0:14:28 | 0:14:33 | |
I came over when I was a teenager, about 16. | 0:14:33 | 0:14:36 | |
And I couldn't speak a word of English. | 0:14:36 | 0:14:41 | |
I was supposed to come here to study English and some short courses like secretarial. | 0:14:41 | 0:14:47 | |
And somehow or other, I end up living here. | 0:14:47 | 0:14:51 | |
And in my mind I have this business sense that I want to do something. | 0:14:51 | 0:14:55 | |
And I heard about buying property a lot and all the time, I wrote back | 0:14:55 | 0:15:00 | |
to my mum to say, "Oh, why don't we do this, why don't we do that?" | 0:15:00 | 0:15:04 | |
-Is she helping you to fund a lot of these projects? -It's her money! | 0:15:04 | 0:15:09 | |
It's her money! But she opened a bank account here in this country many years now. | 0:15:09 | 0:15:14 | |
So she has some funds she allows me to have access to. But she trusts my judgment. | 0:15:14 | 0:15:20 | |
This flat is the latest one that Chantana's mum has provided the funds for. | 0:15:20 | 0:15:25 | |
I just hope it's worth it. | 0:15:25 | 0:15:28 | |
What are you going to do in here? What are your plans for this flat? | 0:15:28 | 0:15:31 | |
I've had a good look now, and I don't think I need to do too much, | 0:15:31 | 0:15:37 | |
er, apart from interior decoration. | 0:15:37 | 0:15:40 | |
Certainly, definitely, needs a lot of cleaning and... | 0:15:40 | 0:15:44 | |
-It sure is dirty. -Very dirty. | 0:15:44 | 0:15:47 | |
Whoever lived here before must have been here years and years. | 0:15:47 | 0:15:51 | |
-And what about the kitchen? -I think that with a few modernisations | 0:15:51 | 0:15:56 | |
-and everything, it should bring it up to a good standard, yeah. -What about your bathroom? | 0:15:56 | 0:16:01 | |
Bathroom. I like baths, so I'm not going to get rid of the bath. | 0:16:01 | 0:16:05 | |
But maybe add some sort of shower system in there as well, and again really clean it up. | 0:16:05 | 0:16:13 | |
# Smoke gets in your eyes. # | 0:16:13 | 0:16:15 | |
After going well over her budget and with that extra £8,000 in stamp duty, | 0:16:15 | 0:16:20 | |
I'm guessing Chantana's going to have to keep renovation costs down as much as possible. | 0:16:20 | 0:16:25 | |
When I saw it, the viewing day, | 0:16:25 | 0:16:28 | |
I told my mum that, "Mum, you have to spend 20,000." | 0:16:28 | 0:16:34 | |
But looking at it today, | 0:16:34 | 0:16:37 | |
-I hope that it will be less. -I think you could do this on less. | 0:16:37 | 0:16:40 | |
I don't think that you need to spend 20,000 to bring this up to standard. | 0:16:40 | 0:16:44 | |
# So I smile and say... # | 0:16:44 | 0:16:48 | |
You've certainly got a good sense of humour about all of this. I mean, it's quite fun to you, isn't it, | 0:16:48 | 0:16:54 | |
-buying property and doing them up? -Yes. I mean, you've done it now. | 0:16:54 | 0:16:58 | |
What is the point of... You make the best of it, and my instinct hasn't gone wrong so far with property. | 0:16:58 | 0:17:06 | |
# Smoke gets in your eyes. # | 0:17:06 | 0:17:10 | |
Chantana didn't play the auction game very carefully, and got stung for that 3% stamp duty. | 0:17:10 | 0:17:17 | |
But she did remember the first rule of property developing - location. | 0:17:17 | 0:17:22 | |
Well, it's been some time now since we last saw those properties. | 0:17:24 | 0:17:28 | |
There should have been some work done but you never know. | 0:17:28 | 0:17:31 | |
Things don't always go to plan. | 0:17:31 | 0:17:32 | |
Let's see what's in store for our buyers. | 0:17:32 | 0:17:35 | |
Back in Cardiff, local electrician Paul had bought this four-bedroom terraced house for 175 grand. | 0:17:36 | 0:17:44 | |
He'd spent four years measuring up the pros and cons of property developing. | 0:17:44 | 0:17:50 | |
Well, just eight weeks later, had Paul been wise to put pen to paper? | 0:17:50 | 0:17:55 | |
The outside's looking spick and span, with fresh paintwork. | 0:17:55 | 0:18:00 | |
And the garden has emerged from that tangled mess, complete with patio area. | 0:18:05 | 0:18:10 | |
Inside, wow! | 0:18:12 | 0:18:15 | |
That kitchen/diner has been transformed with new carpets, | 0:18:15 | 0:18:19 | |
fresh paint and a fantastic kitchen suite. | 0:18:19 | 0:18:22 | |
The kitchen has been OK. | 0:18:24 | 0:18:26 | |
The problems that we faced in here, | 0:18:26 | 0:18:28 | |
the sink that was a problem to position first of all with the appliances, with the washing machine. | 0:18:28 | 0:18:34 | |
There was also a problem with the cornering as well, with the worktop. | 0:18:34 | 0:18:37 | |
It's worked out quite well in that area, where there was a fair few cuts to be made, | 0:18:37 | 0:18:42 | |
and there was also an issue with the extractor fan that we couldn't extract out | 0:18:42 | 0:18:46 | |
onto an external wall, so we had to take it through the ceiling void, and then obviously | 0:18:46 | 0:18:51 | |
the set-up with the positions for the integrated appliances, and that seems to be working out | 0:18:51 | 0:18:56 | |
quite well too, so a lot of them are integrated, as you can see, and I'm quite happy with all of that. | 0:18:56 | 0:19:03 | |
It looks pretty good. I'm pleased. | 0:19:03 | 0:19:05 | |
Elsewhere, there have been less dramatic but equally effective changes, | 0:19:07 | 0:19:11 | |
which have transformed the rather old, shabby condition of the house into something bright and modern. | 0:19:11 | 0:19:17 | |
As he paid 175 grand at auction, | 0:19:37 | 0:19:40 | |
Paul was conscious that he needed to keep his costs down if he was to see any profit at all. | 0:19:40 | 0:19:45 | |
The original budget for the house was £5,000 on the kitchen and carpets | 0:19:48 | 0:19:55 | |
and I've spent about £5,000 now. | 0:19:55 | 0:19:57 | |
He's done a great job of keeping those costs under control, | 0:19:57 | 0:20:01 | |
but what does he now plan to do with the property? | 0:20:01 | 0:20:04 | |
My plan for this house now, as originally, is to sell it. | 0:20:07 | 0:20:13 | |
I did consider renting it out but then finding out | 0:20:13 | 0:20:16 | |
a bit more information on HMO, I decided to stick with the same plan | 0:20:16 | 0:20:20 | |
of just renovating and reselling, putting it straight back on the market. | 0:20:20 | 0:20:24 | |
Having an HMO, or House Of Multiple Occupancy, | 0:20:24 | 0:20:27 | |
is a way of maximising rental income, | 0:20:27 | 0:20:30 | |
but there are rigid guidelines you have to follow to comply with the rules for these, | 0:20:30 | 0:20:34 | |
such as alarm systems and emergency lighting. | 0:20:34 | 0:20:37 | |
The cost and time involved meant that | 0:20:37 | 0:20:39 | |
Paul decided it wasn't worth doing, so was that the right decision? | 0:20:39 | 0:20:43 | |
Time to ask the agents. | 0:20:43 | 0:20:46 | |
If I was looking to sell this property on | 0:21:03 | 0:21:05 | |
in its current condition, | 0:21:05 | 0:21:07 | |
I would suggest it going on the open market | 0:21:07 | 0:21:09 | |
for sale at around £199,000. | 0:21:09 | 0:21:11 | |
That could mean a £10,000-15,000 profit for just six weeks' work, | 0:21:11 | 0:21:16 | |
but should he have invested that money into converting the house into an HMO and rented it out? | 0:21:16 | 0:21:21 | |
If he'd gone down the HMO route, | 0:21:24 | 0:21:26 | |
then you would have been able to have effectively let out | 0:21:26 | 0:21:29 | |
four to five bedrooms here, | 0:21:29 | 0:21:31 | |
each giving £225 per calendar month return, which would have been £1,250 per month. | 0:21:31 | 0:21:37 | |
With that potential whopping rent of over £1,200 per month, | 0:21:37 | 0:21:42 | |
does he regret not going down that route? | 0:21:42 | 0:21:45 | |
I didn't really feel that it was worth my while doing that. | 0:21:45 | 0:21:48 | |
Well, for a first-time project, I think Paul's right to take the money and run. | 0:21:48 | 0:21:53 | |
I'm pretty thrilled when I think about what I've achieved in the time. | 0:22:00 | 0:22:04 | |
I wish I had done this when I was old enough to get a mortgage, | 0:22:05 | 0:22:09 | |
which would have been five, ten years ago. | 0:22:09 | 0:22:12 | |
Yes, but the important thing is he's done it now, | 0:22:12 | 0:22:14 | |
and overall, I think he's made all the right calls! | 0:22:14 | 0:22:17 | |
Back to central London now and that one-bedroom flat in Marylebone. | 0:22:27 | 0:22:32 | |
When it went to auction, property developer Chantana | 0:22:32 | 0:22:36 | |
paid way over the guide price when she bought it for £251,000. | 0:22:36 | 0:22:42 | |
Now I feel much happier, now that it's done and looks totally different. | 0:22:42 | 0:22:48 | |
Chantana has used a number of builders for her projects in the past, | 0:22:50 | 0:22:54 | |
but decided to go with a new one on this flat. | 0:22:54 | 0:22:56 | |
So, how did that work out? | 0:22:56 | 0:22:59 | |
Overall I am happy, very happy, actually. | 0:22:59 | 0:23:02 | |
He rewired everything for me as well and replumbed everything. | 0:23:02 | 0:23:07 | |
And I had the floor insulated. | 0:23:07 | 0:23:08 | |
This was a... I keep, you know, pressing on about that. | 0:23:08 | 0:23:12 | |
I'm worried about the neighbour below. | 0:23:12 | 0:23:14 | |
Fitting sound insulation to the floors and ceilings of flats like this | 0:23:14 | 0:23:18 | |
is certainly a good idea, especially if you are thinking of renting the property out. | 0:23:18 | 0:23:23 | |
What other changes has Chantana made? | 0:23:23 | 0:23:26 | |
We practically ripped everything out. The last tenants smoked a lot. | 0:23:26 | 0:23:32 | |
All the nicotine was on the wall. | 0:23:32 | 0:23:34 | |
Smelly, dirty. | 0:23:34 | 0:23:35 | |
So there was nothing usable. | 0:23:35 | 0:23:37 | |
There was no cupboards or anything anywhere. | 0:23:37 | 0:23:39 | |
We fitted a new cooker and a new oven. I bought these brand new. | 0:23:39 | 0:23:44 | |
New sink, cupboard, fridge and the radiator as well as the boiler. | 0:23:44 | 0:23:50 | |
The new fixtures and fittings in this kitchen are definitely a vast improvement, | 0:23:50 | 0:23:55 | |
but I do wonder why Chantana has gone for that white hob on the cooker. | 0:23:55 | 0:24:00 | |
Surely stainless steel would have been a much better match. | 0:24:00 | 0:24:04 | |
And what about that manky, old bathroom? | 0:24:04 | 0:24:07 | |
We ripped out the whole bathroom and tiled it up, right to the ceiling. | 0:24:09 | 0:24:15 | |
Put the new bath, new basin, new toilet | 0:24:15 | 0:24:19 | |
and new radiator behind the door as well. | 0:24:19 | 0:24:24 | |
I criticised the builder, who put the basin a little bit too big. | 0:24:24 | 0:24:28 | |
Because the room is small, but at least we tiled all the way | 0:24:28 | 0:24:32 | |
up to the ceiling, hoping it would make the room a little bit taller. | 0:24:32 | 0:24:36 | |
She's right, that wash basin is a bit too big for this room. | 0:24:36 | 0:24:40 | |
I do wonder if tiling all the way up to the ceiling was the right way to go. | 0:24:40 | 0:24:44 | |
It makes the room feel taller, but maybe also a bit narrower. | 0:24:44 | 0:24:48 | |
A mirror on one wall would help. | 0:24:48 | 0:24:51 | |
In order to make sure that this place gets the best start possible, | 0:24:51 | 0:24:56 | |
Chantana has a plan up her sleeve. | 0:24:56 | 0:24:59 | |
I'm going to invite a monk, when everything fitted, furniture and all that. | 0:24:59 | 0:25:04 | |
Invite a monk round to do some prayer, chanting, | 0:25:04 | 0:25:09 | |
and sprinkle some holy water all round the flat. | 0:25:09 | 0:25:13 | |
Just to bless the flat. | 0:25:13 | 0:25:14 | |
This is what we always do in Thailand, in the Buddhist, | 0:25:14 | 0:25:18 | |
you know, system... | 0:25:18 | 0:25:22 | |
You feel better to live in a house after it's been blessed. | 0:25:22 | 0:25:25 | |
But will it take more than a monk's blessing for Chantana to make money? | 0:25:29 | 0:25:35 | |
Going over the stamp duty threshold means that she's spent nearly 259 grand on buying this place. | 0:25:35 | 0:25:42 | |
The renovations have cost her around 13,000, making a total of £272,000. | 0:25:43 | 0:25:51 | |
So, was it all worthwhile? | 0:25:51 | 0:25:52 | |
Time to ask the estate agents. | 0:25:52 | 0:25:54 | |
What's the resale value likely to be? | 0:26:10 | 0:26:13 | |
I would place a value on this property of around £265-270,000. | 0:26:13 | 0:26:18 | |
Based on properties that have sold around here, | 0:26:18 | 0:26:21 | |
I would put it on for just under 300. | 0:26:21 | 0:26:23 | |
Oh, really? | 0:26:23 | 0:26:25 | |
Just under 300. | 0:26:25 | 0:26:27 | |
Wow, I'm impressed. | 0:26:27 | 0:26:28 | |
Hold on there, Chantana, because if the lower valuation | 0:26:28 | 0:26:33 | |
of 265-270,000 is closer, you could end up actually losing money. | 0:26:33 | 0:26:39 | |
So, what's next for Chantana? | 0:26:40 | 0:26:43 | |
Now that this builder has impressed me, I might have another project further. | 0:26:44 | 0:26:50 | |
-Hopefully. -Really? | 0:26:50 | 0:26:52 | |
But I promise not to go mad in the auction! | 0:26:52 | 0:26:56 | |
Buying at auction is a real rollercoaster ride. | 0:26:58 | 0:27:01 | |
But one thing for sure, you're guaranteed excitement | 0:27:01 | 0:27:04 | |
when you go a property auction. | 0:27:04 | 0:27:05 | |
So join us next time for more thrills and spills under the hammer. | 0:27:05 | 0:27:09 | |
-See you then. -Goodbye. | 0:27:09 | 0:27:11 | |
Subtitles by Red Bee Media Ltd | 0:27:16 | 0:27:19 | |
Email [email protected] | 0:27:19 | 0:27:23 |