Homes Under the Hammer: Developer set to make good profit
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On an episode of Homes Under the Hammer, Martin visited a three-bedroom mid-terraced property in Bilston, Wolverhampton. The house was situated on Queen Street, boasting two reception rooms, a kitchen, bathroom and back garden. The property had a guide price of £14,000 to £19,000 when it last went to auction.
Martin was shocked at the guide price and called it a “ridiculously low amount of money” when it comes to buying a house.
The property was in dire need of a revamp with overgrown shrubs taking over the outdoor space, tainted wallpaper peeling away, cracked ceiling tiles and dark marks plastered over doors.
Despite the state of the home, the property pro expected the house to sell for “a lot more” than the guide price.
Walking through the front room, Martin noted that although the space is a “bit of a state” he has “seen a lot worse”.
The house boasted high ceiling and good sized rooms with classic designs.
A lot of light comes into the living room, but can be improved by added French doors to open up the space.
The property also housed a “damp” feeling kitchen with signs of water ingress from the roof, so will need a lot of money to renovate.
Martin noted that a “big chunk of money” will need to be spent sorting the kitchen out.
He said: “Depending on the price you pay for it there is still money to be made and intrinsically it is a good house.”
The property looks as though extensions have been added over the years to the back of the home, but they were “not in very good condition at all” according to Martin.
In the garden the property guru spotted Japanese knotweed covering the outdoor space and noted that it will be a “big problem” in the summer.
This bargain house was just one of many Black Country homes with guide prices far below current market rates which were expected to attract bidders from across the country at the upcoming auction.
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At auction, the house was secured by Jermaine, who recently made the step into full-time property development and had a successful bid of £101,000.
Jermaine planned to buy, renovate and rent out the property in just 12 weeks.
He had been investing in property for the last few years, inspired by the Homes Under the Hammer series.
His budget was between £18,000 to £20,000 and he wanted to completely renovate the whole place.
Unfortunately, Jermaine wasn’t aware of the Japanese knotweed covering the garden, but says he will arrange the necessary treatment to get rid of it and is confident the property will be a success.
Homes Under the Hammer visited Jermaine 12 weeks later to see his progress.
The property had been completely transformed both inside and outside with the roof being repaired and the house was made weather tight.
The run-down kitchen was also completely transformed with modern appliances and a breakfast bar.
The bathroom has been fully modernised and comes with a complete separate shower.
Jermaine also managed to “magic up” a new bathroom ensuite.
For the garden that was “completely overrun by Japanese knotweed”, Jermaine hired a professional landscaper who comes in every two weeks to treat it until it disappears.
With a budget of £18,000 to £20,000, Jermaine was over budget as he spent £25,174, which he found was a “shock” when he did his final sums.
Considering the extent of the roof repairs and the unplanned addition of an ensuite bathroom, this wasn’t bad going.
A local agent said in March 2022 that he “really likes” what Jermaine had done to the property.
He said: “I’ve spent a bit of time in here and you can certainly see the thought and effort that has gone into the changes that are made that have certainly added value, so overall I’m very impressed.”
The agent said he thought the property would sell for £160,000 as he believes it will “stand out” when it goes on the market.
That could see Jermaine achieve a possible pre-tax profit of £34,000 on the resale market.
The agent also suggested a rental return of £800 per calendar month which equates to a yield of 7.6 percent.
Homes Under the Hammer airs at 11.15am on BBC One.
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