A property development team descended on Folkestone on Thursday’s episode of Homes Under The Hammer after buying a pair of maisonettes for £246,000. Property development siblings Bahar and Hassan usually focus their attention inside the M25, but the prospect of making a quick buck on the four-storey property was too good to pass up.
The building clearly had a lot of potential – and unusually for the popular BBC One show – didn’t need a huge amount of work to bring it into shape. With Bahar working as a mortgage adviser and Hassan an auditor for the utilities sector, you can bet this pair had their numbers squeezed before betting on investments.
As their parents are already landlords, the siblings were keen to get involved in the game, with Bahar saying “they thought they’d give it a shot”. The property itself was already in very good condition, with the exception of its exterior and rear garden, so they really only needed cosmetic work inside.
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They decided not to renovate the kitchen or bathrooms of the two maisonettes, citing potential plans to turn the building into four separate one-bed apartments as the reason for holding the fire and leaving the facilities as they were. However, it drew some criticism from estate agent Claire Reene, who said: ‘I think they could have done a bit more, if it was me I would have put in new kitchens.’
The brother and sister team spent around £12,000 on improvements to the building, which mainly consisted of installing new carpets and repainting the whole property, with a minor hitch being window repairs which represented a unexpected cost. This brought their total outlay to £258,000, including purchase and renovations.
Their investment appeared to be paying off, with Reene still estimating they could bring in around £170,000 for the upper maisonette and £190,000 for the lower maisonette (which included a garden), meaning Hasan and Bahar could make a profit before tax of £102,000 if they sold immediately. However, their plan is to at least let the properties upfront while retaining the potential for further development into four one-bed apartments, meaning they should generate at least a 6% return on money spent.
The estate agent estimated that they could get around £700-750 for the upper flat and £750-800 for the lower maisonette if they were to rent them on the market. They felt that the rental numbers offered by Reene were “perfect”, so it seems like everyone came away happy with that particular part of the episode.